For personal, non-commercial use only. Do not edit, alter or reproduce.

For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.

* * * * * * FRIDAY, JANUARY 26, 2018 ~ VOL. CCLXXI NO. 21 WSJ.com HHHH $4.00
DJIA 26392.79 À 140.67 0.5% NASDAQ 7411.16 g 0.1% STOXX 600 398.56 g 0.6% 10-YR. TREAS. À 7/32 , yield 2.628% OIL $65.51 g $0.10 GOLD $1,362.40 À $6.50 EURO $1.2397 YEN 109.41

What’s
Fashion Runs Deep When France Is Flooding
Trump Offers
News New Deal on
Immigration
Business & Finance

A n FDA advisory panel

said there wasn’t enough
evidence to support Philip
Morris’s claim that its IQOS White House plan would give Dreamers a path
device reduces the risk of
tobacco-related disease. A1 to citizenship but demand a broader revamp
 Dell is considering a
WASHINGTON—President half-century. It also calls for an
range of strategic alterna-
Donald Trump proposed a end to a lottery program that
tives, which could include
path to citizenship for 1.8 mil- randomly awards 50,000 green
an IPO and a purchase of
lion undocumented immi- cards annually to foreigners
the rest of VMware. B1
grants brought to the U.S. as from countries underrepre-
 The dollar staged a rally children, if lawmakers agree to sented in U.S. immigration.
as Trump said the currency create a $25 billion fund to ex- Mr. Trump was in Davos,
would get “stronger,” ap- pand barriers along the Mexi- Switzerland, for the World Eco-
pearing to contradict com- can border and implement nomic Forum on Thursday. His
ments made by Mnuchin. B1 other deep changes to the im- top aides told Senate Majority
 The Dow closed up 140.67 migration system. Leader Mitch McConnell that
points at a record 26392.79, the president would sign into
after Trump’s remarks on By Michael C. Bender, law legislation that included
the dollar pared gains. B11 Laura Meckler these changes. Mr. McConnell
and Kristina Peterson said he would bring a bill to a
 Caterpillar said annual
vote during the week of Feb. 5,
revenue jumped 18%, break-
The White House suggested White House officials said.
ing a four-year streak of de-
the proposal moved Mr. Trump It wasn’t clear whether Mr.
clines, and it signaled opti-
a step closer to the Democrats, McConnell could find sufficient
mism about 2018 sales. B1
who have championed the support. To reach the 60 re-
 Intel posted record cause of the young immigrants quires votes for such measures
growth in fourth-quarter rev- known as Dreamers, but the to pass, he will need backing

.
enue as sales in its data-cen- plan includes demands they from most Republicans, who
YOAN VALAT/EPA/SHUTTERSTOCK

ly
ter business jumped 20%. B2 have fiercely opposed. The hold 51 seats, and some Demo-
Trump plan also risks the ire of crats. Passage in the House was
 New-home sales in the
hard-liners who oppose any also in doubt, with opposition
U.S. lost steam in Decem- on such pathway to citizenship. Please see DEAL page A4
ber, but turned in a year
The White House proposal,
of solid growth. A2
presented to Senate leaders and  Watchdog recovers missing
 Fiat Chrysler’s earnings congressional aides on Thurs- FBI text messages................. A4
nearly doubled last quarter, day, would restrict family-  White House provides
us l,

moving it closer to surpass- HIGHER GROUND: Streets flooded in the Paris region Thursday as the Seine and other rivers swelled based immigration, the channel documents to Mueller.......... A4
ing Ford in profitability. B6 after heavy rains. Hundreds were evacuated, and the Louvre Museum closed part of its lower level. A16 by which most immigrants have  Trump descends on a wary
al a
e
come to the U.S. for the past Davos.............................................. A7
 Wal-Mart is joining with
Japanese online retailer Ra-
ci on

kuten to bolster efforts to

Clawing Back
compete with Amazon. B2
 Ackman’s Pershing Square
has taken a passive stake in
Tax Overhaul Rips Through Caterpillar, riding a global economic upswing, reported an 18%
jump in 2017 revenue, its first annual increase in five years. The
Nike, betting on the shoe
U.S. Business Landscape construction-machinery maker said 2018 also looks strong. B1
er rs

firm’s long-term prospects. B3

Caterpillar’s annual revenue 2017
 Newell is looking to un-
load brands and shed half its $70 billion $45.5 billion
plants, reversing course after ▲18%
m e

a spate of acquisitions. B3 Firms quickly dust off plans for new investments, stock buybacks 60
m rp

Just weeks after the federal government
World-Wide
adopted the biggest tax overhaul in three de-
cades, the effects are rippling through cor-
 Trump proposed a path ner offices and boardrooms, with companies
to citizenship for 1.8 million
co Fo
million on a new production facility in the 50
U.S. instead of Europe. Kimberly-Clark Corp.,
maker of Kleenex tissues, is spending hun- 40
dreds of millions of dollars to put new ma-
chinery in one of its U.S. factories, even as it 30

Dreamers if lawmakers agree By Theo Francis, closes others and cuts thousands of jobs. Ar-
to a $25 billion fund for bor- amark, the catering and uniform giant, ex- 20
Peter Loftus
der barriers and make other and Heather Haddon pects to save nearly $500 million on two re-
immigration changes. A1 cently completed acquisitions. 10

 The president arrived in large and small dusting off once-shelved The rapid adaptation goes well beyond the
plans, re-evaluating existing projects and ex- early announcements of $1,000 bonuses or 0
Davos, bringing an “America
First” message that has ploring new investment in factories and minimum-wage increases for rank-and-file 2000 ’05 ’10 ’15 ’17
equipment. Please see TAXES page A9 Source: S&P Capital IQ THE WALL STREET JOURNAL.
evoked skepticism among
the forum’s attendees. A7 Specialty drugmaker Amicus Therapeutics
Inc. has decided to spend as much as $200  Treasury questions a state-tax workaround... A2
 Iran has halted the rou-
tine harassment of U.S. naval

TOMORROW Tobacco Device Suffers Blow

vessels in the Persian Gulf, a
reversal that U.S. officials
n-

are at a loss to explain. A1

 The Justice Department
watchdog recovered texts BY BETSY MCKAY vice from conventional ciga- lease toxic chemicals when the
between two FBI employees AND SAABIRA CHAUDHURI rettes could reduce the risk of tobacco in them burns.
no

who criticized Trump. A4 tobacco-related disease. The Tobacco companies have

 A Trump lawyer said the Scientists advising U.S. reg- panel did agree with the com- spent billions of dollars in re-
White House provided over ulators dealt a setback to the pany’s proposed claim that cent years to research and mar-
20,000 pages of documents tobacco industry’s multibil- switching completely from ket tobacco heating and other
to the Mueller probe. A4 lion-dollar quest to bring a smoking cigarettes to using new products they believe will
cigarette alternative to market, IQOS reduces the body’s expo- help lure existing smokers from
 The EPA is withdrawing saying there wasn’t enough ev- sure to harmful chemicals. conventional cigarettes, whose
a decades-old air policy idence a hand-held device that The FDA’s review of IQOS is sales are in decline globally.
aimed at reining in some heats but doesn’t burn tobacco being closely watched, because While tobacco companies
of the largest sources of reduces the risks of tobacco- it will have enormous implica- have so far been able to offset
hazardous pollutants. A5 related disease. tions for the tobacco industry declining volumes with rising
 Canada sought to break a The advisory committee to and U.S. public health. prices, that strategy is seen as
logjam in overhauling Nafta the Food and Drug Administra- The safety and role of alter- having limits, and companies
by introducing a proposal tion said scientific evidence natives to cigarettes are a mat- are scaling back investments in
for more North American was insufficient to support an ter of intense debate. Critics traditional tobacco operations.
content in automobiles. A16
michael b. jordan ambitious marketing claim believe they perpetuate smok- The advisory panel mem-

WSJ. MAGAZINE
proposed by Philip Morris In- ing and an addiction to nico- bers said unanimously they
 Brazil’s Workers’ Party ternational Inc. for the U.S. tine, while supporters argue didn’t believe Philip Morris
proclaimed da Silva its can- market. The claim said switch- they help smokers quit con- had shown consumers would
didate for president despite ing completely to the IQOS de- ventional cigarettes, which re- Please see SMOKE page A7
a court ruling that upheld his
corruption conviction. A16
 Trump’s NASA budget is
expected to propose gov-
ernment-industry moon
Iranian Boats Stop Harassing Going Out in Style: Custom Caskets
Bring a Small Joy to Goodbye
initiatives and an end to
space-station funding. A3
 A fire swept through a
U.S. Navy; No One Knows Why i i

Builders create final resting spots that

i

hospital for the elderly in
South Korea, leaving more
than 30 people dead and
injuring dozens. A16
CONTENTS
Business News...... B3
Crossword............... A11
Heard on Street. B12
Life & Arts....... A10-11
Mansion.............. M1-12
Markets............. B11-12
s Copyright 2018 Dow Jones &
Company. All Rights Reserved
The Iranian military has
halted the routine harassment
by its armed “fast boats” of
U.S. naval vessels in the Per-
sian Gulf, the U.S. military
Opinion.............. A13-15
Sports........................ A12
Streetwise................. B1 By Gordon Lubold
Technology.......... B4-5 in Washington and
U.S. News............. A2-5 Nancy A. Youssef
Weather................... A11
World News. A6-7,16 in Kuwait City
said, a turnabout that officials
> welcomed but were at a loss
to explain.
The boats for at least two
years would dart toward the
U.S. vessels as they passed
through the Persian Gulf, risk-
ing miscalculation, but haven’t
done so for five months, U.S.
military officials said.
The officials said they
hoped the respite would con-
tinue. “I hope it’s because we
have messaged our readi-
ness…and that it isn’t tolera-
ble or how professional mili-
taries operate,” Army Gen.
Joseph Votel, who heads U.S.
Central Command, told report-
ers traveling with him in the
Middle East this week. Iranian
officials didn’t respond to a
request for comment.
The fast boats are typically
armed with .50 caliber ma-
chine guns and rocket launch-
ers and have come within
shooting distance of American
naval vessels, encounters that
grew routine even though each
one presents potential dangers
to American vessels transiting
through international waters.
In some of the more serious
incidents, Iranian crews have
directed spotlights at ship and
aircraft crews, potentially
blinding pilots as they conduct
operations, according to U.S.
military officials. In one case,
an Iranian boat pointed a
weapon at an American heli-
Please see IRAN page A6
 Tehran’s internet ban upends
businesses................................... A6
reflect life passions of the departed
BY GABRIEL T. RUBIN Her mother, who died of a
heart attack at age 52, had
NEW ORLEANS—Teresa Mc- long taught her to be differ-
Craig made a stylish exit, bur- ent, Ms. McCraig said. No off-
ied in a purple casket covered the-shelf casket would do.
in photos of her dogs, emblems Ms. McCraig was lucky to
of favorite teams, the San An- Please see CASKET page A9
tonio Spurs and Dallas Cow-
boys, and the logo of her favor-
ite beer, Corona.
“I couldn’t send her home in
a casket where people would
say, ‘Oh, my mom had that
one,’” said her daughter, Ma-
riah McCraig, of Beeville, Texas. Customized casket
 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.
A2 | Friday, January 26, 2018
Treasury Is Skeptical of Tax Workaround
BY RICHARD RUBIN
WASHINGTON—Treasury
Department tax experts are
skeptical about states allowing
taxpayers to make charitable
contributions to circumvent a
new cap on deductions for
state and local taxes, a depart-
ment official said.
The comments from Thomas
West, the tax legislative counsel,
serve as a warning to lawmak-
ers in New York, New Jersey
and California who are consid-
ering encouraging such dona-
EDMUND D. FOUNTAIN FOR THE WALL STREET JOURNAL (PHOTOS)
Charmaine Anderson, who worked at the Waffle House below, in Slidell, La., dropped a sexual-harassment claim against the chain.
Arbitration Inhibits Some Claims
BY JACOB GERSHMAN
Charmaine Anderson
thought she had a strong case
against Waffle House.
Ms. Anderson claimed the
diner chain fired her in 2012
from her $3.95-an-hour wait-
ress job near New Orleans after
she complained about her boss,
whom she accused of texting
her images of his penis, then
threatening her with a knife if
she reported him.
Her plans to pursue the
claim unraveled when her attor-
ney discovered after filing suit
that Ms. Anderson, like other
Waffle House workers, had
signed an agreement mandating
she settle any employment-re-
lated claims through arbitration
instead of civil court.
Her attorney advised her it
wasn’t worth taking it to arbi-
tration. Without a lawyer, she
dropped it. “I knew I couldn’t
fight it so I just let it go,” said
Ms. Anderson, now 42 years old
and living unemployed in Mis-
sissippi. “It was a humiliating
situation. I felt like I was no-
no
body and didn’t have a chance.”
More companies are adopt-
ing the mandatory-arbitration
clauses, and many employees
are walking away from harass-
ment, wrongful-termination and
discrimination claims rather
than taking them to a privately
run tribunal, according to ex-
perts and new research.
The proportion of nonunion,
private-sector employees cov-
ered by the mandatory-arbitra-
tion clauses has more than dou-
bled to 56% since the early
2000s, according to a 2017
study by a Cornell University
professor and sponsored by the
Economic Policy Institute, a
left-leaning think tank in Wash-
ington, D.C.
In many cases, workers drop
the claims because they can’t
get lawyers to take their cases.
Plaintiffs’ lawyers say they are
New-Home Sales Slide but Cap Off Solid 2017
BY SARAH CHANEY
WASHINGTON—New-home
sales lost steam in December
but wrapped up a solid year in
a market segment that has
faced tight inventory and fast-
rising prices.
Purchases of newly built
single-family homes—a rela-
tively narrow slice of all U.S.
home sales—decreased 9.3% to
a seasonally adjusted annual
rate of 625,000 in December,
the Commerce Department
said Thursday.
Economists say a posthurri-
cane bounce drove strong sales
tions with new state tax breaks.
The department is monitor-
ing what states are doing and
may issue a more formal no-
tice if warranted to protect
federal tax revenue, said Mr.
West, who was speaking at a
conference on Thursday. “We
are skeptical that some of
these [ideas] would work.”
Treasury Secretary Steven
Mnuchin also previously called
such ideas “ridiculous.”
Lawmakers in high-tax
states are considering ways of
responding to the new tax law,
on
us l,
al a
e
ci on
er rs
m e
m rp
co Fo
reluctant to represent arbitra-
tion clients on contingency fees
because potential settlement
and award payouts are gener-
ally lower than in court.
Ms. Anderson’s former attor-
ney, Glenn McGovern of Metai-
rie, La., said plaintiffs’ employ-
ment lawyers generally avoid
arbitration “like a plague.” Kan-
n-
sas City plaintiffs’ attorney
Some say private
tribunals popular
with employers are
secretive and unfair.
Dennis E. Egan of Popham Law
Firm, P.C., who specializes in
discrimination lawsuits, has a
rule against representing arbi-
tration clients. When they call,
“I say, I’m sorry, arbitration is
stacked against you,” he said.
Before Ms. Anderson’s case
was dismissed in court in 2013,
Waffle House had pushed back
on her allegations, disputing
even that the man she accused
was her supervisor, according
to court records. “This is a six-
year-old matter,” a spokesman
said last week in a statement.
“Since there was never any ef-
through the fall, and some of
the December drop could mark
a reversal from those gains.
Sales rose 8.3% in 2017 from
the prior year to 608,000, the
highest level since 2007, sig-
naling momentum for 2018.
“We do expect new-home
sales to pick up over the next
year,” said Aaron Terrazas, se-
nior economist at Zillow.
“Home builders do sense that
there is demand out there,
particularly at more affordable
price points, and are doing
what they can to try to meet
that demand.”
Sales in November jumped
U.S. NEWS
which limits the individual de-
duction for state and local
taxes to $10,000.
One option being consid-
ered in some states would take
advantage of the fact that
charitable contributions re-
main deductible against fed-
eral income taxes. States could
set up funds and then give
taxpayers credits against their
state and local income or
property taxes for donations.
That way, for example, peo-
ple making $20,000 contribu-
tions to a New York state fund
fort by Ms. Anderson to pursue
arbitration, we consider this
matter closed.”
In an atmosphere of rising
awareness of sexual harassment
stemming from the #MeToo
movement, an estimated tens of
millions of American employees
work for companies that re-
quire disputes with their em-
ployers be adjudicated through
arbitration, according to the
study by the Cornell professor.
The employees include a range
of occupations—from wait-
resses to brewery workers to fi-
nancial executives.
Arbitration involves trial-like
hearings, often conducted by
former judges or lawyers. Arbi-
trators usually don’t follow fed-
eral rules of civil procedure
and, compared with courts, im-
pose tighter limits on pretrial
discovery. Arbitration cases are
generally confidential and
harder to appeal.
The business community
says arbitration is a cheaper,
faster and simpler way to adju-
dicate claims. Critics say it is
secretive and unfair to workers.
Some lawmakers in Congress
are currently pushing to restrict
mandatory arbitration in cases
of sexual harassment.
Many defense lawyers say
the push to arbitration has led
to an appropriate culling of
to a postrecession high, at a
689,000-unit rate.
Despite solid growth in 2017,
sales still remain below the
levels seen before the 2007-09
financial crisis and recession.
In December, new-home
sales dropped in all regions.
Inventory has been tight in
the wider housing market, in
part because of lackluster con-
struction, contributing to a
run-up in prices.
The median sale price for a
new home sold in December
was $335,400. At the current
sales pace, there was a 5.7-
month supply of new homes
could take the charitable de-
duction on their federal re-
turns, just as they used to be
able to fully deduct state and
local taxes. Then, they could
get a discount of as much as
$20,000 on their local taxes.
Some legal experts say that
approach would work under ex-
isting law. Taxpayers typically
can’t get credit for a donation
when they get something of
value from a charity in return,
but tax benefits haven’t typi-
cally been treated that way.
Many states have similar credits
weaker claims. Kenneth Willner,
an employment lawyer at Paul
Hastings LLP, said arbitration
offers “more consistent deci-
sion-making that’s more at-
tuned to the law” as compared
with jury trials, where verdicts
and awards are more unpredict-
able.
Others believe arbitration is
keeping large numbers of wor-
thy claims from being heard.
In a new draft paper titled,
“The Black Hole of Mandatory
Arbitration,” New York Univer-
sity labor and employment law
professor Cynthia Estlund con-
cluded that the great bulk of
employment disputes subject to
mandatory-arbitration agree-
ments “simply evaporate before
they are even filed.”
It isn’t clear how many sex-
ual-harassment claims are
heard in arbitration but the evi-
dence suggests it is a relatively
small number. The American
Arbitration Association says it
received about 100 sexual-ha-
rassment claims in 2016, repre-
senting about 3.5% of the
group’s employment cases, and
that the numbers haven’t fluc-
tuated much year-to-year. The
group is the largest arbitration
forum in the country and ad-
ministers roughly half of all
mandatory employment arbitra-
tion cases, according to re-
searchers.
The next largest arbitration
forum in the country, called
JAMS, declined to say how
many harassment cases it re-
ceives, saying it doesn’t keep
track.
The number of employees al-
leging sexual harassment in the
U.S. isn’t known. The federal
Equal Employment Opportunity
Commission receives close to
7,000 complaints a year about
sexual harassment from em-
ployees, who are required to
notify the agency about dis-
crimination allegations before
bringing a federal lawsuit.
on the market at the end of
the month. Though the figure
was up from 4.9 in November,
supply remains tight.
New-home-sales data can
be volatile from month to
month. December’s decrease
comes with a margin of error
of plus or minus 11 percentage
points.
Sales of previously owned
homes, which represent the
bulk of the U.S. market, fell in
December but rose in 2017 as
a whole to their highest level
since 2006, the National Asso-
ciation of Realtors said on
Wednesday.
* ***** THE WALL STREET JOURNAL.
in place already, such as state could head off the maneuvers
income-tax credits for conserva- by states or discourage indi-
tion-easement donations. viduals from claiming the
But Mr. West said the break. The alternative would
closer the benefit gets to be audits after taxpayers claim
100%, the more questionable it the benefits on their federal
is. “That becomes something tax returns, which could be
else,” he said. more difficult and time-con-
The Treasury could perhaps suming for the government.
use the “substance over form” Mr. West was less critical of
legal doctrine to challenge the the legal justification for an-
maneuvers as impermissible other idea being considered in
because of the intent and result New York, which would replace
of the transactions, he said. part of the state income tax
Issuing formal guidance as with a payroll tax, which would
states are considering ideas be deductible for employers.
Amtrak Engineer
Missed Speed Sign
BY JIM CARLTON him in the lead locomotive were
among the injured. The conduc-
The engineer driving an Am- tor is among the victims who
trak passenger train that de- have filed lawsuits against Am-
railed near Seattle last month trak and others over the acci-
didn’t see a sign to reduce dent.
speed posted 2 miles ahead of a NTSB officials said it will
sharp curve, federal investiga- take as long as two years to
tors said Thursday. complete an investigation into
As a result, the 55-year-old the accident and that the ac-
male engineer—whose name counts of the train crew will be
wasn’t released—didn’t start compared against video and
braking from speeds of almost other sources.
80 miles an hour until the start Previously, the board had
of the curve in DuPont, Wash., disclosed that the crew wasn’t
.
where the train flew off the using smartphones or other
ly
tracks and left three dead and electronic devices just before
70 people injured, according to the accident, apparently ruling
an investigation update re- out that kind of distraction as a
leased Thursday by the National possible cause.
Transportation Safety Board. Because of their injuries, the
The NTSB also said the engi- engineer and conductor weren’t
neer that morning, Dec. 18, was able to be interviewed until last
only on his second run driving week, NTSB officials said.
southbound on the newly The engineer told investiga-
opened Point Defiance bypass. tors he didn’t recall seeing a
Train cars careened off the sign posted on his side of the
30-mile-an-hour curve into cab 2 miles before the curve
woods and onto nearby Inter- that warned of the approaching
state 5. The injury count in- speed restriction.
cluded eight motorists.
Both the engineer and a con-  New safety system clogs up
ductor undergoing training with railroad network........................B3
U.S. WATCH
PENNSYLVANIA concerning my office and the
settlement of certain harass-
Congressman Won’t ment allegations have become a
Seek Re-Election major distraction," Mr. Meehan
wrote in a letter to his campaign
A Republican congressman chairman. "I need to own it be-
from Pennsylvania who settled a cause it is my own conduct that
former aide's sexual harassment fueled the matter."
complaint with taxpayer money —Associated Press
informed party and campaign of-
ficials Thursday that he will not ECONOMY
seek re-election.
The complaint by a former Initial Jobless Claims
aide three decades younger than Increased Last Week
U.S. Rep. Pat Meehan came to
light Jan. 20 in a New York The number of Americans fil-
Times report. The accuser's law- ing applications for new unem-
yer, Alexis Ronickher, called the ployment benefits rose last
allegations a “serious sexual ha- week, partly reversing the prior
rassment claim.” week’s sharp decline and con-
Mr. Meehan, 62, is a four- tinuing a recent trend of gradu-
term congressman. In an effort ally rising applications.
to fend off the accusation, the Initial jobless claims, a proxy
married father of three had de- for layoffs across the U.S., in-
scribed the woman in an inter- creased by 17,000 to a season-
view as a "soul mate," and ac- ally adjusted 233,000 in the
knowledged he had lashed out week ended Jan. 20, the Labor
when he discovered she had be- Department said Thursday.
gun dating another man. But he Weekly jobless claims have
contended he had done nothing held below 300,000, viewed by
wrong and had never sought a many economists as a healthy
romantic relationship with her. level, for almost three years.
"Unfortunately, recent events —Sharon Nunn
CORRECTIONS  AMPLIFICATIONS
Martin Hewitt is one of the agement is domiciled in the
candidates running against Cayman Islands, and Lewis
Rep. Rodney Frelinghuysen Fellas, the hedge fund’s man-
(R., N.J.) in the 2018 midterm ager, is based in Hong Kong. A
election. A Page One article on Business & Finance section ar-
Thursday about Mr. Frelin- ticle Thursday about hedge
ghuysen incorrectly gave Mr. funds turning cautious on
Hewitt’s first name as Marvin. cryptocurrencies incorrectly
said Mr. Fellas’s fund is based
Bletchley Park Asset Man- in Hong Kong.
Readers can alert The Wall Street Journal to any errors in news articles by
emailing wsjcontact@wsj.com or by calling 888-410-2667.
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 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.
THE WALL STREET JOURNAL.
Supervised
Drug Use
Is City’s Rx
Opioid deaths drive
Philadelphia to back
injection sites, an idea
opposed by many
BY JON KAMP
To address the deadly opi-
oid crisis racking Philadelphia,
city leaders are backing a
novel step to open a haven
where addicts can use their
drugs.
The idea of permitting the
open use of illicit opioids is
controversial and largely un-
tested in the U.S., but propo-
nents argue that bringing opi-
oid use out from the shadows
would save lives. Opponents,
including law-enforcement
agencies and some public offi-
cials, say it would essentially
permit an illegal activity and
enable addicts.
Philadelphia officials are
trying to slow a crisis that has
rapidly worsened. Last year,
about 1,200 people died there
from drug overdoses, mostly
opioids, up 32% from 2016.
“We are facing an epidemic
of historic proportions,” Phila-
delphia Health Commissioner
Thomas Farley said Tuesday,
when announcing city support
for supervised-injection sites.
“We have an obligation to do
everything we can to prevent
those people from dying.”
Trump’s NASA Budget: More Moon, Less Space Station
BY ANDY PASZTOR
The White House’s next
NASA budget is expected to
propose government-industry
moon initiatives and an end to
space-station funding by the
middle of next decade, accord-
ing to people familiar with the
details.
The 2019 spending proposal
will lay out the first specifics
for such lunar exploration—
previously embraced by Presi-
dent Donald Trump—while
calling for a modest $200 mil-
lion program down payment,
these people said. If all goes
well, it projects manned mis-
sions to the moon by the early
2020s, according to internal
government documents and
people tracking the issue.
For the longer term, the
Trump administration seeks to
free up money for the moon ef-
fort by ending federal spending
on the international space sta-
tion by the end of 2024. Stud-
ies by the National Aeronautics
and Space Administration and
Boeing Co., prime contractor
for the station, highlight esca-
no
lating costs to maintain the
1990s–vintage platform, which
Idaho to Allow Plans Outside ACA California’s Brown Highlights
BY ANNA WILDE MATHEWS
Idaho officials said they
would begin allowing insurers
to sell new plans that don’t
meet requirements set by the
Affordable Care Act, a move
that will test the limits of
states’ ability to carve out
their own health-insurance
rules under the Trump admin-
istration.
In a bulletin issued on
Wednesday, the Idaho Depart-
ment of Insurance said that it
would allow insurers in the
state to begin offering “state-
based plans” to consumers.
These products could leave
out some of the benefits man-
dated by the ACA for individ-
ual coverage. Insurers would
be able to consider enrollees’
medical history in setting
their premiums, a practice
known as underwriting, which
isn’t authorized under the
ACA. The new state-based
plans could also include dollar
limits on total benefit payouts,
which the ACA banned.
Health-policy experts said it
wasn’t clear that the state has
the authority to allow such
products, or that it would be le-
gal under federal law for insur-
ers to sell them. “I don’t see
how this is reconciled with the
basic ACA requirements,”
said Scott E. Harrington, a
health-care-management pro-
The concept is simple: Peo-
ple who use drugs in a super-
vised facility with professional
help will less likely overdose
and die. This strategy builds
on commonplace harm-reduc-
tion methods in the U.S., like
needle exchanges to reduce
HIV risk and widespread dis-
persal of the overdose-reversal
drug naloxone.
A scientific review released
by Philadelphia authorities es-
timated that a single super-
vised-injection site there could
prevent as many as 76 over-
dose deaths each year. Super-
vised injection could also save
the city money by reducing
emergency-medical costs, the
health commissioner said.
The city isn’t planning to
open such facilities on its own
but is encouraging private-sec-
tor “comprehensive user en-
gagement sites.” These would
include a place where people
could bring in opioids, use
them under supervision, and
get immediate help if they
overdose. The sites would in-
clude other services, too, in-
cluding referral to treatment,
clean needles, social services
and naloxone access.
This recommendation was
one of many in a city task-
force report issued in May.
More recently, a delegation in-
cluding Philadelphia Mayor
Jim Kenney traveled to Van-
us l,
couver, British Columbia,
al a
e
ci on
er rs
m e
m rp
co Fo
Apollo 17 commander Eugene Cernan takes a spin on the moon in the Lunar Roving Vehicle in 1972.
already costs the agency more
than $3 billion a year.
Without new money for ex-
ploration, NASA would be hard
n-
pressed to create spacecraft
able to ultimately establish hu-
man habitats on the lunar sur-
face, as anticipated by White
House officials.
Certain details of the budget
fessor at the University of
Pennsylvania’s Wharton School.
Weston Trexler, a bureau
chief in the Idaho Department
of Insurance, said the state
“believes we do have the au-
thority to issue this bulletin
and allow carriers to file….
We’ve looked at the issues
there and we feel we can make
these plans available.”
Experts say it isn’t
clear that the state
has the authority to
allow such products.
The state will continue to
enforce the ACA’s rules for
ACA plans, Mr. Trexler said,
and the new products are “not
conflicting with the ACA prod-
ucts.” He said they would pro-
vide a new option for consum-
ers who can’t afford or don’t
want the ACA-compliant plans,
which have seen significant
premium increases over the
years.
The state’s move will put a
spotlight on the federal De-
partment of Health and Hu-
man Services and provide an
early test of its newly con-
firmed, incoming leader, Alex
Azar, who has criticized the
U.S. NEWS
Needles littered a heroin encampment in Philadelphia’s Kensington neighborhood in April. The city’s overdose deaths rose 32% in 2017.
which has long had a super-
vised-injection site, and to Se-
attle, which plans to add one.
San Francisco is aiming to
get at least one supervised-in-
jection site up and running
this year, according to Health
Director Barbara Garcia. In
New York City on Wednesday,
Police Commissioner James
O’Neill said the NYPD was
evaluating supervised-injec-
tion sites and had an initial
meeting on the matter with
the city’s Department of
onHealth and Mental Hygiene.
There are also bills in sev-
eral states—including New
York, California and Colo-
rado—aimed at providing legal
cover for communities to es-
request still could change be-
fore the official release next
month. Some aerospace compa-
nies and industry groups with
advance information already
are gearing up to lobby for a
longer space-station phaseout.
Former President Barack
Obama committed the U.S. to
at least 2024, and kept the
ACA in the past but is now in
charge of enforcing it.
Mr. Azar has been expected
to play a central role in Trump
administration efforts to roll
back the federal health law.
A spokesman for HHS
didn’t respond to a request to
comment.
“This is clearly flouting the
ACA’s insurance rules,” said
Larry Levitt, a senior vice
president at the Kaiser Family
Foundation, a health-care re-
search nonprofit. “This is defi-
nitely a Wild West strategy.”
No other state has gone so far,
he said.
Idaho is implementing its
new approach without apply-
ing for a federal waiver that
would allow it to depart from
ACA rules—other states look-
ing to make changes have typ-
ically sought these waivers.
Timothy S. Jost, an emeri-
tus professor at Washington
and Lee University, said the
language of the ACA requires
federal regulators to enforce
the law’s requirements if a
state fails to do so.
“I don’t know that HHS has
any discretion not to enforce
the ACA,” he said. The risk may
be borne primarily by insurers
that offer the state-based
plans, which could be subject
to significant fines for selling
products that don’t meet ACA
requirements, he said.
Friday, January 26, 2018 | A3
tablish sites. These bills are an number of serious public-
uphill push, sponsors acknowl- health and legal concerns,” a
edged, amid worries about in- spokesman said.
tensifying the health crisis. Pat Trainor, spokesman for
In Vermont, where policy the Philadelphia office of the
makers are also debating the federal Drug Enforcement Ad-
idea, the U.S. attorney’s office ministration, said the agency
issued a rebuke last month. “does not condone or approve”
These sites “would encourage of supervised injection.
and normalize heroin use, There are about 100 injec-
thereby increasing demand for tion sites in other countries,
.
opiates and, by extension, risk and while data are limited, evi-
ly
of overdose and overdose dence indicates they “can have
deaths,” the office said. a substantial effect on reduc-
In Pennsylvania, Republican ing mortality,” according to
House Speaker Mike Turzai Philadelphia’s review of the ev-
blasted what he called Phila- idence. Proponents also cite a
delphia’s “drug addiction-en- positive track record for con-
abling plan.” Gov. Tom Wolf, a necting users to treatment,
Democrat, is worried super- and another report, from Ver-
vised injection “presents a mont’s largest county, con-
other partner countries in the
station. Some haven’t yet de-
cided whether they support an
extension.
The spending proposal also
could spark opposition from
U.S. lawmakers who have been
demanding a detailed blueprint
for shifting station function to
private entities. NASA missed a
HARRISON H. “JACK” SCHMITT/ASSOCIATED PRESS
December deadline to submit
one.
On Thursday, Sen. Bill Nel-
son of Florida, the senior Dem-
ocrat on the Senate Commerce
Committee that oversees
NASA, said White House offi-
cials are “going to have a fight
on their hands.” In a statement,
he said a mandatory 2025
funding shut-off “would likely
decimate Florida’s blossoming
commercial space industry,
which is one of the reasons
why Congress has directed
door open to maintaining oper- NASA to look at extending” the
ations through 2028. The orbit- space station to 2028 and to
ing laboratory has been used “provide a plan to help scien-
for experiments on subjects tists and researchers continue
ranging from drug and elec- experimenting” beyond that
tronics manufacturing to the date.
health effects of prolonged The proposed budget is ex-
time in space. pected to earmark some $100
A rigid 2024 deadline could million in seed money for what
prompt concerns among the NASA envisions will be private
Record, Faults Trump Policies
BY ALEJANDRO LAZO
SACRAMENTO—In his 16th
and final State of the State
speech Thursday, California
Gov. Jerry Brown insisted the
California dream is still alive
in a dangerous world.
“You will find critics who
claim that the California
dream is dead. But I am used
to that,” Mr. Brown said, talk-
ing up the state’s economic
growth over both eras of his
administration.
In 1975, when he was gover-
nor the first time, personal in-
come in the state was $154 bil-
lion, he said. Now, it is $2.4 Gov. Jerry Brown gives his last State of the State speech.
trillion, he said.
He returned to office in 2011, At the same time, Mr.
facing a $27 billion state defi- Brown presided over a wors-
cit, and drastically slashed ening housing crisis, widening
spending. In 2012, he staked his unfunded pension liabilities,
governorship on a tax increase and a rise in the number of
that voters approved that year homeless people.
and reauthorized in 2016. “The narrative that the
Earlier this month, Mr. governor gave of California in
Brown released a budget pro- his speech only tells one side
jecting a $6.1 billion surplus of the story,” said state Sen.
for the next fiscal year, which Patricia Bates, the Republican
begins July 1. Mr. Brown has leader. “Our state has become
proposed saving most of the increasingly unaffordable for
money, putting it away in a many Californians.”
rainy-day fund he pushed to Mr. Brown highlighted Cali-
create in 2014. fornia’s lead role opposing
DOMINICK REUTER/AGENCE FRANCE-PRESSE/GETTY IMAGES
cluded these sites don’t en-
courage more drug use.
No user “has suggested to
me that A, they wanted to get
to the place that they got to,
and B, that having support is
somehow encouraging them,”
said Bob Bick, chief executive
at the Howard Center, a Burl-
ington, Vt., health center that
includes a needle-exchange
program.
Many physicians support
broadening the concept. The
American Medical Association
in June encouraged pilot pro-
grams to further explore the
issue in the U.S., two months
after the Massachusetts Medi-
cal Society made a similar
state-level recommendation.
spaceships, corporate research
and other nongovernmental ac-
tivities in low-Earth orbit. That
is a tiny sliver of NASA’s cur-
rent $19.7 billion budget, but it
is intended to demonstrate the
White House’s commitment to
commercial space endeavors.
One federal budget docu-
ment indicates NASA hopes to
enhance U.S. leadership in
space by combining robotic and
manned technologies “involv-
ing commercial and interna-
tional participation.”
The proposal also paves the
way for competition on some
NASA launches between pri-
vate boosters and the agency’s
own, ultra-heavy-lift SLS
rocket.
Overall, people familiar with
the budget say, the plan under-
scores the White House’s re-
solve to advance both robotic
and manned exploration of the
moon, as a step toward blast-
ing humans deeper into the so-
lar system. Vice President Mike
Pence, who heads space policy
as chairman of the White
House Space Council, has said
he would boost U.S. space lead-
ership partly by encouraging
private industry.
FRED GREAVES/REUTERS
the Trump administration on
climate change and immigra-
tion.
Mr. Brown, a Democrat,
last year signed a “sanctuary
state” bill over the opposition
of sheriffs here, positioning
California to restrict coopera-
tion between local law en-
forcement and the Trump ad-
ministration in efforts to
deport illegal immigrants.
Mr. Brown’s appointee for
attorney general, Xavier Bec-
erra, has sued the Trump ad-
ministration 26 times.
 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.
A4 | Friday, January 26, 2018
Watchdog Recovers Missing FBI Texts
Messages between
two officials in Clinton,
Trump probes have
concerned Republicans
BY DEL QUENTIN WILBER
The Justice Department’s in-
ternal watchdog has recovered
an undisclosed number of miss-
ing text messages between an
FBI agent and another bureau
employee who have come under
fire for privately criticizing
President Donald Trump during
the 2016 campaign.
Republicans and allies of Mr.
Trump had raised concerns
about the missing texts, which
cover a critical time in the Fed-
eral Bureau of Investigation’s
probe into Russian meddling in
the 2016 election. Mr. Trump
tweeted on Tuesday that the
missing texts were “one of the
biggest stories in a long time.”
The new texts aren’t yet pub-
licly available, but the Justice
Department’s inspector general
told a prominent senator Thurs-
Trump Lawyer Notes Document Submission in Probe
BY REBECCA BALLHAUS
A lawyer for President Don-
ald Trump said Thursday that
the White House had provided
more than 20,000 pages of
documents to special counsel
Robert Mueller as part of the
investigation into Russian in-
terference in the 2016 U.S.
election, which he said showed
“unprecedented” cooperation
by the administration.
John Dowd, who heads the
president’s private legal team,
DEAL
Continued from Page One
from Democrats expected over
policy changes and border-wall
funding, and opposition from
conservatives over a pathway
to citizenship for undocu-
mented immigrants.
Mr. Trump’s multipart plan
contrasts with calls from some
on Capitol Hill, including Sen-
ate minority leader Chuck
Schumer (D., N.Y.) for a deal
largely centered on just two is-
sues: the fate of the Dreamers
and border security.
Mr. Trump’s proposal would
offer a path to citizenship
within 10 to 12 years for 1.8
million Dreamers—people
whose parents brought them to
the U.S. illegally as children.
About 700,000 Dreamers were
shielded from deportation un-
der the Deferred Action for
Childhood Arrivals program
created by former President Ba-
rack Obama in 2013.
In September, Mr. Trump
ended the program, known as
DACA, but gave Congress until
its expiration on March 5 to re-
place it. The rest of the immi-
no
grants aren’t enrolled in DACA
but could have qualified.
“This represents a dramatic
concession by the White House
to get to 60 votes from the Sen-
ate,” a senior administration of-
ficial said, describing the bill as
a “compromise on many
fronts.”
But Mr. Trump’s broad-
reaching proposal ran counter
to the mood on Capitol Hill
Thursday, where lawmakers
have been trying to narrow the
parameters of negotiations to
boost their chances of being
able to cut a deal.
The White House framework
was released shortly after sena-
tors scattered for the weekend
and while the House is on a
week-long recess. But earlier
Thursday, both Democrats and
Republicans had been advocat-
ing winnowing the scope of the
immigration talks to focus pri-
marily on border security and
addressing the fate of the
Dreamers.
“As we found time and
again, when we open up the ne-
gotiations to discussions of
broad immigration reform,
there is no end to what each
party says could be on the ta-
ble,” Mr. Schumer said on the
Senate floor Thursday. “We
should find a narrow deal on
DACA and border security.”
Sen. Marco Rubio (R., Fla.)
said the best strategy would be
to bring to the Senate floor a
slimmer bill that dealt only
with border security and giving
the Dreamers legal status for
now, with the chance to expand
it if enough senators agreed on
other issues.
day they had been recovered.
FBI Agent Peter Strzok su-
pervised the investigation into
Hillary Clinton’s use of a private
email server when she was sec-
retary of state, as well as the
FBI’s inquiry into Russian med-
dling in the election. He was the
top agent on special counsel
Robert Mueller’s probe into any
links between Mr. Trump’s as-
sociates and Moscow.
Mr. Strzok was reassigned
from that job in July after the
inspector general uncovered
text messages in 2015 and 2016
between Mr. Strzok and an FBI
lawyer, Lisa Page, that were
highly critical of Mr. Trump.
Republicans and White
House allies have said the texts
suggest the FBI was biased in
its pursuit of Mr. Trump.
The agent and lawyer, who
were engaged in a romantic re-
lationship, excoriated others in
their messages, including Sen.
Bernie Sanders (I., Vt.) and for-
mer Attorney General Eric
Holder.
However, the inspector gen-
eral’s office was unable to find
said the White House’s docu-
ment production included more
than 5,000 pages related to for-
mer national security adviser
Mike Flynn and Russia, and
nearly 8,000 pages related to
former Federal Bureau of Inves-
tigation Director James Comey.
Mr. Mueller is investigating on has also interviewed more than
whether Trump associates col-
luded in Moscow’s alleged in-
terference efforts and whether
the president obstructed jus-
us l,
tice in firing Mr. Comey while
his agency’s Russia probe was
al a
e
ci on
er rs
m e
m rp
co Fo
n-
Supporters rallied in Hartford, Conn., Thursday for a Guatemalan immigrant at his check-in at Immigration and Customs Enforcement before his scheduled deportation.
Some Republicans support
allowing Dreamers to become
citizens, but others are worried
about whether that would en-
able them to sponsor their par-
ents and other relatives for
green cards.
Many experts, including
some in the Trump administra-
tion, say that if Dreamers are
going to be allowed to stay in
the U.S., they should have a
path to citizenship so they
don’t have perpetual second-
class status.
President Trump
has long said he was
open to protecting
Dreamers.
Some conservatives argue it
isn’t fair to grant citizenship to
people who came to the U.S. il-
legally and it would encourage
others to break the law.
“No one should be awarded
citizenship for knowingly
breaking our law,” said Rep.
Scott DesJarlais (R., Tenn.), a
member of the conservative
House Freedom Caucus, saying
most Dreamers were teenagers
when they entered the U.S. and
knew what they were doing.
“It’s an insult to all those who
have followed the rules.”
When the president said he
would be in favor of a pathway
P W L C 10 11 12
Sen. Ron Johnson was notified that the messages were recovered.
text messages from December
2016 through May 2017. Justice
Department officials this week
cited a technical issue that pre-
vented thousands of Samsung
phones like the ones used by
Mr. Strzok and Ms. Page from
uploading messages for storage.
In a letter Thursday to Sen.
Ron Johnson (R., Wis.), chair-
man of the Senate Homeland
Security and Governmental Af-
under way. Mr. Trump has de-
nied collusion, and Moscow
has said it didn’t meddle in the
election.
The documents were pro-
vided to the special counsel
voluntarily, Mr. Dowd said in a
statement. Mr. Mueller’s team
20 White House officials, in-
cluding eight members of the
White House Counsel’s Office,
Mr. Dowd said.
Mr. Dowd called the White
House’s document production
to citizenship late Wednesday
before leaving for Davos, the
conservative website Breit-
bart.com ran a headline refer-
ring to Mr. Trump as “Amnesty
Don.”
But Mr. Trump has long said
he was open to protecting
Dreamers, and the White House
is betting that his supporters
will overlook those concessions
if he can secure funding for a
border wall.
Mr. Trump’s path to citizen-
ship would also include require-
ments for work, education and
“good moral character,” which
has long been one of the re-
quirements for naturalization
in the U.S. That status could be
revoked in the case of criminal
conduct, public safety concerns
or dependency on the govern-
ment for subsistence, such as
cash assistance.
While Mr. Trump promised
voters he would make Mexico
pay for the wall, his plan in-
stead asks Congress to find $25
billion for a trust fund that fu-
ture lawmakers couldn’t divert
to other programs.
The goal is to ensure long-
term funding for the plan, but
doing so will require lawmakers
to sign off on a huge expansion
of the existing border barrier.
Today, 654 miles of the 2,000
mile border have some sort of
fencing. Under the Trump plan,
the total would top 900 miles,
with hundreds of miles of exist-
ing fencing replaced and in
some cases built higher.
H T G K B F A M 1 2 3 4 5 6 7 8
U.S. NEWS
fairs Committee, Inspector Gen-
eral Michael Horowitz said his
investigators had recovered
missing texts.
“The OIG has been investi-
gating this matter and, this
week, succeeded in using foren-
sic tools to recover text mes-
sages from FBI devices, includ-
ing text messages between Mr.
Strzok and Ms. Page that were
sent or received between De-
“the most transparent response
in history by a president to
special counsel inquiries.”
Mr. Trump said Wednes-
day he was willing to testify
under oath in Mr. Mueller’s in-
vestigation, putting the time-
line for such an interview
within two to three weeks. “I
would love to do it, and I
would like to do it as soon as
possible,” the president said.
The president’s attorneys
have spent recent weeks nego-
tiating the precise terms under
Man With Ties
To Pyongyang
Applied for Visa
A Chinese middleman who
is allegedly one of the largest
facilitators of North Korean
trade invested around
$500,000 with his wife in a
fund that put them on a path
toward becoming U.S. perma-
nent residents, according to a
court document filed Thursday.
Law-enforcement officials
seized the funds in October,
and the U.S. attorney’s office in
Washington filed a complaint
Thursday to forfeit the funds
from Chi Yupeng and his wife,
Zhang Bing.
The disclosure appears to
expose a loophole in the much-
debated EB-5 visa program
that allowed the pair to make
the investment in 2015 and re-
main invested in the project
until the funds were seized, de-
spite being on a U.S. sanctions
list.
Mr. Chi and his company
were added in August to a
Treasury Department list of en-
tities and people who the U.S.
government says help facilitate
North Korea’s nuclear and bal-
listic missile program. On that
same day, the U.S. attorney’s
office filed a case seeking to
9 O I X X ** THE WALL STREET JOURNAL.
cember 14, 2016, and May 17,
2017,” Mr. Horowitz wrote. He
said he would turn over the
texts to the Justice Department.
The Justice Department pro-
vided Congress in December
with more than 170 texts be-
tween Mr. Strzok and Ms. Page
JACQUELYN MARTIN/ASSOCIATED PRESS
that were deemed political. The
department permitted reporters
to review those texts. On Jan.
19, it handed over 384 pages of
texts between the agent and
lawyer to Congress, but didn’t
provide copies to the media.
Sen. Chuck Grassley (R.,
Iowa), chairman of the Senate
Judiciary Committee, sent a let-
ter to FBI Director Chris Wray
on Thursday raising questions
about some of those messages.
Mr. Grassley cited a text in
which he argued Ms. Page
was seeking to pull punches
in the Clinton investigation.
“She might be our next presi-
dent. the last thing you need
us going in there loaded for
bear,” Ms. Page wrote, appar-
ently referring to the number
of personnel who would be
present for an interview of
which Mr. Trump might con-
sent to an interview with the
special counsel, according to
people familiar with their ef-
.
forts.
ly
His lawyers are considering
having the president provide
written answers to questions
from Mr. Mueller—an option
that former prosecutors say
the special counsel is unlikely
to accept—or to agree to an in-
terview only on certain topics.
Mr. Mueller’s questions to
the president are expected to
forfeit other funds Mr. Chi’s
company allegedly tried to
route through U.S. banks.
The Washington-based
C4ADS, which studies transna-
tional threats, has previously
identified Mr. Chi’s company,
Dandong Zhicheng, as the big-
gest importer of North Korean
goods into China. Prosecutors
have alleged the company
helped facilitate North Korea’s
coal trade, which the U.S. has
estimated generates more than
$1 billion in revenue a year for
North Korea and helps fuel its
weapons programs.
The couple couldn't be
reached for comment. An attor-
ney for them couldn't immedi-
ately be located.
The new forfeiture filing
comes as the Trump adminis-
tration is pressing Chinese offi-
cials to expel North Korean
agents helping finance Pyong-
yang’s nuclear-weapons and
missile programs. The U.S. on
Wednesday imposed sanctions
on 16 North Korean agents ac-
cused of operating largely in
China as representatives of
North Korea’s banned banks
and weapons programs.
The EB-5 program offers
green cards to aspiring immi-
grants who invest at least
$500,000 in U.S. businesses in
high-unemployment or rural ar-
eas that have been determined
to create at least 10 jobs per
investor. A green card permits
the former secretary of state.
Democrats said Republicans
were taking many of the mes-
sages out of context and over-
stating their importance, as
well as the roles of Mr. Strzok
and Ms. Page, to come up with
conspiracy theories in an at-
tempt to distract from the Rus-
sia investigation. They criti-
cized Mr. Johnson, for example,
for raising question about a text
in November 2016 in which Ms.
Page discussed forming a “se-
cret society.”
Associates of Mr. Strzok and
Ms. Page said there was no such
group and that she meant it as
a dark joke. On Thursday, Mr.
Johnson told CNN the text
might be a joke.
Senate Minority Leader
Chuck Schumer (D., N.Y.) took
issue on the Senate floor Thurs-
day with some of the criticisms
of the FBI. “What began as an
attempt to discredit the investi-
gator has now devolved into de-
lusional, self-serving paranoia,”
he said.
—Byron Tau
contributed to this article.
focus on the Comey firing and
on Mr. Trump’s alleged request
that Mr. Comey ease off a
probe of Mr. Flynn, the Journal
reported this week.
The special counsel is also
expected to ask about Mr.
Trump’s decision to fire Mr.
Flynn, which he said at the
time was because the national
security adviser had misled
Vice President Mike Pence
about the content of his con-
versations with Russia’s former
U.S. ambassador.
JOHN MOORE/GETTY IMAGES
a foreign national to live and
work in the U.S.
The majority of EB-5 visas go
to wealthy Chinese individuals,
according to data from the De-
partment of Homeland Security.
The U.S. government limits the
number of EB-5 visas to 10,000
a year.
The EB-5 program has been
criticized for favoring wealthy im-
migrants and for channeling
most of the funds to upscale
neighborhoods, rather than the
economically disadvantaged ar-
eas for which the program was
intended.
Some developers and middle-
men who have raised money
through the program also have
allegedly been involved in fraudu-
lent schemes aimed at taking ad-
vantage of applicants.
Federal prosecutors in Brook-
lyn and the Securities and Ex-
change Commission have been
examining the use of the EB-5
program by the real-estate com-
pany run by the family of Jared
Kushner, President Donald
Trump’s son-in-law and senior
adviser. A spokeswoman for
Kushner Cos. has previously said
it fully complied with EB-5 rules
and regulations and did nothing
improper.
Thursday’s complaint appears
to be one of the first instances
of alleged misconduct on the part
of an investor seeking to obtain a
visa through the program.
—Aruna Viswanatha
 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.

THE WALL STREET JOURNAL. * * * * * NY Friday, January 26, 2018 | A5

U.S. NEWS

EPA Scuttles Policy

On Pollution Sources
BY TIMOTHY PUKO
WASHINGTON—The Trump
administration is withdrawing
a decades-old air policy aimed
at reining in some of the larg-
est sources of hazardous pol-
lutants like mercury and lead.
The Environmental Protec-
tion Agency said late Thurs-
below the major-source classi-
fication cutoff to avoid re-
quirements that could further
lower their emissions.
President Donald Trump has
made a rollback of environ-
mental regulations one of his
signature issues to lower costs
for businesses.
The latest change “will re-

JUAN OCAMPO/LA METRO/ASSOCIATED PRESS

day it is getting rid of require-
ments that it forever keep
sites classified as “major
sources” of hazardous air pol-
lution once they meet that
classification. This “once-in,
always-in” policy punished in-
dustry by keeping factories
and other sites under heavy
regulation even if they made
improvements that would pre-
vent them from being major
sources of pollution, according
to the EPA and lawmakers who
duce regulatory burden for in-
dustries and the states, while
continuing to ensure stringent
and effective controls on haz-
ardous air pollutants,” Bill
Wehrum, assistant administra-
tor of the EPA’s Office of Air
and Radiation, said.
The policy requires facilities
that annually emit 10 tons or
more of a single air pollutant or
25 tons or more of a group of
pollutants to use the maximum Los Angeles is one of several cities that has struggled to get federal approvals before moving ahead with critical infrastructure projects.
achievable technology controls

Infrastructure Push Targets Rules

had requested the move.
Environmentalists and con-
gressional critics decried the
change, saying it is one of the
EPA’s bedrock environmental
regulations that keeps pollut-
ers from trimming back to just
to lower their pollution.
Republican Sens. Shelley
Moore Capito of West Virginia
and John Barrasso of Wyoming
sent a letter a letter to the EPA BY TED MANN groups and their Democratic al- permitting process to jump- utes, like the Clean Water Act
earlier this month asking for lies in Congress. start rebuilding of critical infra- and Clean Air Act, that dictate
the change. WASHINGTON—U.S. Cham- Still, the president’s advisers structure. That includes Presi- factors for review before a
ber of Commerce President believe they can alter the per- dent Barack Obama, who signed highway or pipeline can be ap-
Thomas Donohue last week was mitting process to change how the FAST Act in 2015, a biparti- proved for construction.

Food-Stamp Tussle nearing the end of a speech

urging Congress to rebuild the
nation’s infrastructure when he
the government builds roads,
bridges, rails and pipelines for
years to come.
san transportation funding
package that created a federal
permitting improvement coun-
“We’ve been very clear in all
of our discussions that their in-
frastructure package is not an

To Steer Farm Bill offered another option: At least

make it easier to build things
when the money can be found.
BY JESSE NEWMAN work requirements for recipi- “If we just fix the permitting
“I think one of the most im-
portant things this administra-
tion can do is take permit deliv-
ery times from what is now an
cil aimed at speeding up the en-
vironmental review process. Mr.
Obama also issued executive or-
infrastructure package—it is an
environmental deregulation
package,” said Christy Goldfuss,
ders, as Mr. Trump has, aimed who was managing director of

.
ents of the Supplemental Nu- thing this year, you would cre- average of 4.7 years down to at improving the efficiency of the Council on Environmental

STATE COLLEGE, Pa.—Ag-
riculture Secretary Sonny Per-
due wants more food-stamp
recipients to work for that as-
sistance, an opening salvo in
what are expected to be con-
tentious negotiations over the
next U.S. farm bill.
trition Assistance Program, or
SNAP, is one of the U.S. De-
partment of Agriculture’s pri-
orities for the coming bill.
“We have to figure out
ways to feed the poorest in
our society more productively
and help them learn to transi-
us l,
ate an extraordinary enthusi-
asm about moving forward,”
Mr. Donohue said.
on President Donald Trump
hasn’t said where he will find
$200 billion in budget savings
that the White House says will
be a down payment on an infra-
two years,” said Alexander Her-
rgott, the lead infrastructure
aide on the White House’s
Council on Environmental Qual-
ity, at a conference in Washing-
ton this month.
The campaign is part of a
broad effort to roll back regula-
ly
such reviews.
Mr. Trump and his aides
have cited studies suggesting
that environmental review can
often take a decade, and calling
for that period to be reduced to
two years. A Government Ac-
countability Office study of the
Quality under Mr. Obama and
now oversees environmental
and energy policy at the liberal
think tank the Center for Amer-
ican Progress.
Business interests were
pleased with an executive order
Mr. Trump issued in August,

The nutritional-assistance
benefits known as food
stamps make up the biggest
piece of the legislation that
governs myriad aspects of
tion into an independent life-
style,” Mr. Perdue told Penn-
al a
e
sylvania dairy farmers.
Always contentious, this
round of farm bill wrangling is
ci on
structure package that it hopes
will generate more than $1 tril-
lion in spending over 10 years.
But the administration is
also hoping to roll back regula-
tions and constraints on busi-
ness across the government.
That agenda has drawn support
from business groups who say
it will boost the economy, but it
environmental review process
in 2014 cited third-party esti-
mates that reviews average 4.6
years. Outside experts say ac-
tual review times vary widely
which required federal agencies
to coordinate from the earliest
stages of a project review, with
the goal of making a “single
federal decision” on whether a

food and farming in America.
Congress is due to renew the
farm bill in 2018 for five
years. The current $900 bil-
lion program expires Sept. 30.
expected to be complicated by
President Donald Trump’s pro-
posal for steep spending cuts
at the USDA. House lawmakers
say they want to introduce a
er rs
tions in place for decades to re-
duce the period between proj-
ect approval and construction,
limiting environmental reviews
and litigation in favor of getting
has prompted concern from en-
vironmental advocates and con-
sumer groups who warn that
the administration risks undo-
ing years of progress in reduc-
based on the scope of a project
and other factors.
The Trump team’s goals have
alarmed environmental groups
and others who say they believe
project could move ahead on
environmental grounds.
The administration is confi-
dent that it can get bipartisan
support, especially from mayors

During a tour through
Pennsylvania on Wednesday,
Mr. Perdue said tightening
draft of the bill in the first
quarter so Congress can pass
final legislation by October.
m e
m rp
big things built. ing accidents and pollution. the plans are less focused on ef- and governors eager to drive
The effort is likely to face re- Previous presidents have ficiency and more on altering their own local building proj-
sistance from environmental tried to streamline the federal underlying environmental stat- ects ahead quickly.

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A6 | Friday, January 26, 2018 NY THE WALL STREET JOURNAL.

WORLD NEWS
Iran Internet Crackdown Hits Commerce
Messaging app ban Telegram. those whose work is directly
Digital Dependence But Supreme Leader Aya- linked to Telegram,” Mr. Beh-
took aim at protesters, Iran's President Hassan Rouhani has called for fewer restrictions on the tollah Ali Khamenei—or fig- rangi said.
but upended country’s internet, where he said some 70% of services in the country were transacted. ures loyal to him within Iran’s At least 50,000 Iranian
opaque ruling system—opted firms use Telegram as part of
small businesses GDP, annual change Unemployment rate Mobile phone penetration to crack down. their businesses, according to
100%
“There was a mind-set that a Twitter account set up dur-
15 % 20 %
When Iranian authorities Rouhani is standing in front of ing the protests to document
blocked popular messaging them and they won’t block the economic fallout from the
app Telegram last month in 10 Telegram,” said Reza Shalbaf block. Others have cited
an attempt to quell unrest, 15 75 Zadeh, a developer and engi- smaller figures, including Af-
the country’s small business neer at a parcel-delivery shin Kolahi, an Iranian Cham-
community bore the brunt of 5 startup, “but that’s vanished ber of Commerce official, who
a communications breakdown 10 50 now.” said on Jan. 2 that around
that reverberated across the Official figures suggest a 10,000 to 15,000 businesses
0
economy. pronounced economic effect were completely virtual, and
from the crackdown. During would go bankrupt if blocks
5 25
By Asa Fitch in Dubai –5 roughly two weeks of unrest, on internet use became per-
and Aresu Eqbali bank transactions fell by 40%, manent.
in Tehran and the national postal ser- The Iranian tech economy
–10 0 0 vice’s income fell by 18%, ac- is small by global standards,
One pet-shop owner in Teh- 2000 ’10 ’17* 2000 ’10 ’17* 2007 ’10 ’15 ’17† cording to Mohammad-Javad but it is growing rapidly, as
ran named Mojtab said he was Azari-Jahromi, Iran’s minister mobile internet users rose to
*Estimates †Through September Note: Iran has about about 85 million active mobile phones, of which some 47 million have internet data.
no longer able to process or- Recent numbers exceeding 100% reflect people owning more than one device.
of information and communi- about 47 million last year, ac-
ders and coordinate deliveries Sources: International Monetary Fund (GDP, unemployment); cations technology. cording to official statistics,
through Telegram, forcing him Iranian Ministry of Information and Communications Technology (phones) THE WALL STREET JOURNAL. He didn’t specify what or nearly 60% of Iran’s popu-
to solicit business by knocking caused the declines, but in a lation.
on doors. He also struggled to onstrations that shook Iran vandalism and rioting. Am- dustries in Iran, he said, and video clip posted on the par- Farid Khaheshi, a veteran
keep orders straight, at one from late December to the nesty International demanded while the impact of govern- liament’s news service web- of Iran’s startup scene and the
point delivering dog food to second week of January. Teh- an investigation into reports ment curbs was still limited, it site, the minister acknowl- former chief operating officer
the owner of a Persian cat. ran blocked the app and throt- that at least five people had was growing. edged it was necessary to of one of its biggest tech com-
“These days everybody tled internet speeds to stall died in custody. An Iranian official at the strike a balance between panies, said creating an atmo-
uses Telegram—I don’t know the flow of communications The unrest has left Tehran U.N. didn’t respond to a re- meeting security needs and sphere for economic growth
what they were thinking,” said during the protests. The re- weighing the economic risks quest to comment. Nor did a allowing people to communi- was hard enough without gov-
Mojtab, who asked that his strictions, which went into ef- of censorship as it calibrates a spokesman for Telegram. cate and transact business on- ernment interference. Target-
last name not be used because fect Dec. 31 and were lifted response to any future pro- Some Iranian business ex- line. ing tools that people use to
he feared repercussions. “My Jan. 13, disrupted thousands tests. ecutives say the block on Navid Behrangi, the communicate and do business
regular customers were very of businesses dependent on “Iran has a love-hate rela- Telegram shook their faith in founder of the video stream- would discourage much-
unhappy.” such tools. tionship with the internet,” President Hassan Rouhani, a ing startup rooydad.tv, said needed investment, he said.
Telegram is an encrypted While the unrest died down said Sam Blatteis, the chief relative moderate within development work on his site “If we want to make con-

.
social-media app used by after two weeks, many of the executive of The MENA Cata- Iran’s system. President Rou- stopped for a few days as a siderable progress, we must

more than 40 million Iranians. thousands of people Iranian
It was a prime means of shar- security forces arrested dur-
ing information and videos ing the crackdown are still in
during antigovernment dem- jail, facing charges including on
lysts, a regional public policy
advisory and research firm.
Internet businesses were one
of the few booming non-oil in-
hani has used economic argu-
ments to allow more liberties,
such as relatively unfettered
access to messaging apps like
ly
result of those restrictions.
“I know a lot of other start-
ups in Iran, and they also had
a lot of problems, particularly
avoid such unpredictable deci-
sions no matter what the po-
litical necessities are,” Mr.
Khaheshi said.

IRAN Provocations Abate

Vaez said Tehran’s Supreme
National Security Council had
us l,

Iran fast-boat operations ordered the IRGC to stand its

deemed by the U.S. to be unsafe ground in the region, but not
al a
US NAVY/AGENCE FRANCE-PRESSE/GETTY IMAGES

e
Continued from Page One and/or unprofessional to harass U.S. Navy ships. The
copter flying off a Navy vessel, council is presided over by
officials said. In the most seri- 12 President Hassan Rouhani but
ci on

ous incidents, U.S. vessels 10 Mr. Khamenei has the final

have fired warning shots in say.
return. 8 Cmdr. Urban said the U.S.
Tensions reached a high 6 Navy hadn’t modified its oper-
point in January 2016 after ations in the region and would
er rs

4
two small U.S. Navy boats continue to operate “wherever
drifted into Iranian waters and 2 international law allows.”
Islamic Revolutionary Guard The last incident, in Au-
0 0 00000
Corps members briefly held gust, occurred when an Ira-
m e

the crew captive. U.S. officials 2016 ’17 nian drone flew in the vicinity
accused Iran in that instance A video-grab from the U.S. Navy showed an Iranian boat heading toward the USS Thunderbolt in Source: Department of Defense of aircraft conducting night
of violating international law. the Persian Gulf on July 25 of last year. A Navy patrol ship responded by firing warning shots. THE WALL STREET JOURNAL. operations on the USS Nimitz.
m rp

The Iranian boats are typi- Cmdr. Urban expressed con-

cally crewed by the IRGC, U.S. nian behavior comes as an in-
military officials have said. ternational nuclear agreement
The IRGC is Iran’s elite mili- with Tehran is teetering as
tary unit and reports directly President Donald Trump
co Fo
support of Houthi rebels in rassment, a U.S. military offi- refrain from provoking the cern about Iranians’ use of
Yemen. “I think we have to cial explained. U.S. and providing fodder for drones, also known as un-
look at Iran in totality,” Gen. Officials at U.S. Naval the Trump administration to manned aerial vehicles, to ha-
Votel said. Forces Central Command, in blame Iran for regional insta- rass American vessels.

to Supreme Leader Ayatollah threatens to end U.S. sanc-
Ali Khamenei. tions relief provided to Tehran
Since January 2016, there under the deal, signed under
has been an average of more President Barack Obama.
than two “unsafe or unprofes- Washington’s European al-
sional” incidents each month, lies are discussing ways of
according to the U.S. military. heightening sanctions against
There have been 50 such inci- Iran for actions not directly
dents in the past two years, related to the country’s nu-
officials said. clear program.
But in response to a query, Gen. Votel said that the
U.S. military officials said abatement in the Persian Gulf
there have been no such inci- didn’t alone signal a broader
dents since August 2017. “strategic shift” by Iran, not-
n-
The U.S. has publicly criti-
cized what it says is Iranian
backing of the Houthis. Iran
also has sent forces to Syria
and backs militants operating
there on behalf of the Assad
regime.
Military officials noted that
while Iranian harassment in
the Gulf had declined, the
country’s forces weren’t idle.
Iran has been observed by the
U.S. conducting activities that
approach but stop short of
Manama, Bahrain, were loath
to guess the reasons behind it.
“We are not going to specu-
late on the reason for this re-
cent positive trend in interac-
tions, though we hope it will
continue in the future,” said
Cmdr. Bill Urban, a spokesman
for the U.S. Navy’s Fifth Fleet,
in Manama.
Ali Vaez, Iran project direc-
tor at the International Crisis
Group, said the decrease in
harassment is part of a
bility.
“I think they understand
the administration’s policy at
this stage is to put the spot-
light on Iranians and portray
them as the source of all evil
in the region,” he said.
“The Iranians are certainly
part of the problem in the re-
gion, but they’d like to be por-
trayed as part of the solution,
not just the problem.”
The lull in harassment coin-
cides with an internal direc-
“Even with the decreased
incidents, we remain con-
cerned with the increased
number of Iranian UAVs oper-
ating in international airspace
at night without navigation
lights or an active transpon-
der as would be expected ac-
cording to international
norms,” he said.
“We continue to advocate
for all maritime forces to con-
form to international maritime
customs, standards and laws,”

The apparent shift in Ira- ing activities such as Iran’s what would be considered ha- broader pattern by Tehran to tive last summer in which Mr. he said.
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THE WALL STREET JOURNAL.
Trump Descends on a Wary Davos
BY REBECCA BALLHAUS
AND FELICIA SCHWARTZ
DAVOS, Switzerland—Presi-
dent Donald Trump’s arrival at
the World Economic Forum
here on Thursday was met
with an immediate question:
“Are you going to be treated
well?”
Mr. Trump, whose debut in-
side the hall hushed the
crowded space except for the
snapping of cellphone photos,
replied: “You tell me.”
The first U.S. president to
emerge directly from the pri-
vate sector became the first
U.S. leader in nearly two de-
cades to attend the forum,
bringing with him a delegation
paralleled only by Chinese
President Xi Jinping’s entou-
rage a year earlier.
The administration brings a
message of “America First”
that has evoked skepticism
with the globalists who fre-
quent the annual conference.
Mr. Trump on Thursday was
met by fascination and suspi-
cion from attendees at the fo-
rum, which features a series of
seminars and endless net-
working at meals, parties and
get-togethers where sideline
deals, both corporate and po-
litical, are often cut.
Asked what message he
wanted to send at Davos, Mr.
Trump said Thursday: “We
want great prosperity and we
want great peace, and I think
that’s the message.…We are
seeing tremendous investment,
and today has been a very ex-
citing day.” Mr. Trump is set to
address the forum on Friday.
At a reception Thursday
evening with corporate execu-
tives, Mr. Trump expressed op-
timism that the U.S. economy
would grow faster than ex-
pected. He told the group he
had spoken with Indian Prime
Minister Narendra Modi, who
mentioned that India’s econ-
omy was growing at 7%. Mr.
Trump told the executives he
could deliver the same eco-
nomic growth if given a second
term, according to attendees.
Arkady Dvorkovich, Russia’s
deputy prime minister, said
Moscow expects to hear from
Mr. Trump’s Friday speech “a
transparent and clear presenta-
tion of what the U.S. govern-
ment is planning to do and
what the goals are of those pol-
icies.…More than anything we
expect a clear stance on what
SMOKE
Continued from Page One
understand the risks of using
IQOS from its labeling and ad-
vertising. A majority of panel-
ists also said the likelihood
was low U.S. smokers would
switch completely to IQOS.
A Philip Morris spokesman
said, “We are confident in our
ability to address the valid
questions raised by the Com-
mittee with the FDA as the re-
view process for our applica-
tion continues.”
IQOS is a hand-held device
that heats tobacco but doesn’t
burn it, so it doesn’t produce
smoke when users inhale. It
differs from other smoking al-
ternatives like e-cigarettes
that produce vapor from nico-
tine-laced liquid.
Philip Morris already sells
IQOS in 29 countries, often in
sleek boutiques. Now the com-
pany, through U.S. partner Al-
tria Group Inc., hopes to sell
the device in the U.S. to people
who want to quit smoking,
with the claim it cuts the risk
of tobacco-related diseases
such as cancer and benefits
public health. It has submitted
Lighting Up
Tobacco companies are hoping to woo smokers with
a new array of devices like IQOS that heat but don't
burn tobacco.
Tobacco stick
Inside the Holder
Filter Tobacco
Paper
Source: Philip Morris International
* * * *
FABRICE COFFRINI/AGENCE FRANCE-PRESSE/GETTY IMAGES
The president waved at the crowd as he arrived in Davos on Thursday. He was set to speak Friday at the World Economic Forum.
‘America First’ really means.”
Canadian Prime Minister
Justin Trudeau, who has dif-
fered with the U.S. president
on trade and immigration,
when discussing Mr. Trump’s
visit said different perspec-
tives “should be listened to,
understood and included in
the way we figure out the
right path forward. The op-
portunity to convene different
perspectives here at this con-
ference is really important.”
Some longtime attendees
us l,
said they were pleased by the
U.S. presence at the conference;
al a
e
the president was accompanied
by nearly 20 advisers.
“If we’re going to solve
ci on
problems, it’s better with
America playing some kind of
role if they’re willing to play
that role,” said Tony Fratto, a
partner at the Washington
er rs
lobbying firm Hamilton Place
Strategies, describing the atti-
tude shared by some of the fo-
rum’s attendees. “And we’re
m e
not going to find that out by
not talking to them.”
The U.S. delega-
m rp
tion Wednesday and Thurs-
day fanned out across the hotels
and conference rooms of this
snowy resort town, in a bid to
co Fo
two separate FDA applications:
One to sell IQOS in the U.S.
and another to market it as
safer. The advisory panel hear-
ing focused on the second one.
IQOS is one of a wave of
smoking-alternative products
the tobacco industry is count-
ing on for growth. Japan To-
bacco Inc. sells a device called
n-
Ploom Tech, which uses tobacco
The device heats
no
tobacco but doesn’t
burn it, so it doesn’t
produce smoke.
capsules. British American To-
bacco PLC has its own heat-not-
burn product similar to IQOS
called Glo and plans to apply
this year for FDA approval.
The findings of the Tobacco
Products Scientific Advisory
Committee will go to the FDA,
which will make the decision
on both applications.
Mitch Zeller, director of the
FDA’s Center for Tobacco
Products, said the agency
would weigh the committee’s
findings along with public in-
Charger
Plugs in or runs on its
Holder rechargeable battery
3.7 inches
Heating blade Warms
the tobacco to 572°F Electronics
Users can take up to 14 puffs over six minutes before it shuts off.
Note: drawings are schematic
WORLD ECONOMIC FORUM
Palestinians Must
Talk Peace to Get
Aid, President Says
DAVOS, Switzerland—Presi-
dent Donald Trump on Thurs-
day said the Palestinians must
on return to peace talks with Israel
to continue receiving U.S. aid, in
comments to reporters as he
met with Israeli Prime Minister
Benjamin Netanyahu.
Mr. Trump, in Davos for two
days for the World Economic Fo-
speak with one voice about
America’s economic success.
At a reception for world
leaders on Thursday attended
by Mr. Trump and Secretary of
State Rex Tillerson and hosted
by Klaus Schwab, executive
chairman of the World Eco-
nomic Forum, the message
from the U.S. delegation was:
“If America has prosperity and
security, that makes other na-
tions more prosperous and se-
cure,” said a person familiar
with the event.
Attendees saw Mr. Trump’s
decision to bring with him a
FROM PAGE ONE
put and other information to
reach its decision.
A go-ahead from the FDA
could pave the way for regula-
tion that pushes cigarette smok-
ers to newer, safer alternatives,
said David Sweanor, a tobacco-
control expert and adjunct pro-
fessor of law at the University
of Ottawa. “The substitution of
non-combustion products has
huge health potential,” he said.
Some analysts and tobacco
experts said the advisory
panel’s position would make it
difficult for the FDA to approve
Philip Morris’s claim that IQOS
reduces disease. Jefferies ana-
lyst Owen Bennett said he ex-
pects the FDA to approve the to-
bacco giant’s application to sell
IQOS in the U.S. without making
a claim that IQOS is safer than
conventional cigarettes.
“It was almost impossible
for a vote to be ‘yes,’ ” said Mr.
Bennett, noting the high bur-
den of proof and ambiguity in
the statements members were
asked to vote on.
Philip Morris could submit
more evidence or propose a
less-ambitious claim, said Mi-
chael Eriksen, dean of Georgia
State University’s School of Pub-
lic Health and principal investi-
gator of the university’s Tobacco
The charger opens
to store the holder
Can recharge
the holder 20 times
4.4 inches
Rechargeable battery
THE WALL STREET JOURNAL.
rum gathering, said he was
hopeful for a peace deal be-
tween Israel and the Palestinians,
but said the Palestinians had
“disrespected” the U.S. by refus-
ing to meet with Vice President
Mike Pence earlier this week.
It wasn’t clear what specific
funds Mr. Trump was threaten-
ing to withhold. According to
State Department figures, the
U.S. is planning to give the
West Bank and Gaza $251 mil-
lion this fiscal year. The U.S. in-
formed the United Nations last
week it would withhold $65
swath of his cabinet as a re-
sponse to Mr. Xi’s visit last year,
which was widely seen as a play
by China to fill what it saw as a
vacuum in global leadership fol-
lowing Mr. Trump’s election.
“What they heard about Da-
vos last year was that Xi came
here and Xi came with a mes-
sage,” Mr. Fratto said. “You
could expect that Trump’s re-
marks would be an answer to
Xi’s message.”
Mr. Xi’s message largely
consisted of a full-throated
defense of international trade
and economic integration, and
Center of Regulatory Science.
“The claims could be restated,”
he said. “I think it’s a process,
and they’re in the middle of it.”
The Marlboro maker has in-
vested over $3 billion to de-
velop IQOS and other cigarette
alternatives. Since 2008, Philip
Morris has hired over 400 sci-
entists and experts to do re-
search and development, hous-
ALWAYS ARRIVE WITH A PRISTINE SUIT
keeping them wrinkle free upon your arrival.
on the go
Friday, January 26, 2018 | A7
million from the U.N. Relief and
Works Agency, the Palestinian
refugee agency. That is more
than half of the $125 million
the U.S. was supposed to give
.
for a first payment this year.
ly
Saeb Erekat, the secretary-
general of the Palestine Libera-
tion Organization, responded:
“President Trump is blackmail-
ing and punishing the Palestin-
ian people for fighting and be-
lieving in their freedom and
human rights per international
law and U.N. resolutions.”
—Rebecca Ballhaus
said protectionist policies—
which some have accused Mr.
Trump of seeking to imple-
ment—are “just like locking
one’s self in a dark room.”
Mr. Trump’s arrival also
brought protests. One flag
hanging near the forum crossed
out part of “global warming” to
instead read: “Global War with
Fire and Fury,” referring to a
book critical of the White
House that the president spent
weeks attacking.
 Trump’s comments give dollar
a late-day boost ...................... B1
ing them in a glass building in
Neuchâtel, Switzerland, nick-
named “the cube.”
The company is seeking a re-
duced-risk marketing claim to
help it tap a large potential
market. Of the 36.5 million adult
smokers in the U.S., 67% of men
and 69% of women want to quit,
according to the Centers for
Disease Control and Prevention.
upon arrival
‘FD9F ’
www.VOCIER.com
A Warning
To Heed
U.S. Trade
Criticisms
BY GREG IP
DAVOS, Switzerland—A top
International Monetary Fund
official said some Trump ad-
ministration complaints about
unfair trade are valid, as he
urged the rest of the world, in
particular China, to take note.
David Lipton, the No. 2 offi-
cial at the IMF, said while
there’s nothing inherently
wrong with bilateral trade def-
icits, “unwarranted” deficits
driven by “distortive” or “un-
fair” trade practices are a
problem.
He noted that in both the
U.S. and Europe, unhappiness
with globalization has gener-
ated political upheaval. “The
rest of the world, whose future
really depends on openness
and integration, had better be
open to dealing with those con-
cerns and complaints or else it
will be really hard to have a
globalization that’s durable.”
President Donald Trump’s
confrontational approach to
trade has unnerved the foreign
dignitaries, global institutions
and companies attending the
World Economic Forum in Da-
vos, Switzerland. On Monday
the IMF warned an “increase
in trade barriers” would de-
press long-term growth
Yet Mr. Lipton’s remarks,
which he made on the side-
lines of the forum, suggest
that the global community
doesn’t consider Mr. Trump’s
complaints entirely ground-
less, and shouldn’t be reflex-
ively dismissed.
“There have been short-
comings in lots of countries’
trade policies and it makes
sense to address those,” Mr.
Lipton said.
But he said those com-
plaints are best addressed in
bilateral discussions or multi-
lateral settings. The Trump
administration has preferred
to take unilateral action, such
as the tariffs announced this
week on washing machine and
solar panel imports, rather
than bring a case through the
World Trade Organization.
That has raised fears of tit-
for-tat retaliation by others
and a trade war.
Philip Morris is counting on
lower taxes and looser market-
ing restrictions for IQOS than
those levied on conventional
cigarettes to push smokers to
switch to the new product. “The
regulatory environment has to
differentiate the products,” said
Philip Morris Chief Executive
Andre Calantzopoulos in an in-
terview last year.
 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.

A8 | Friday, January 26, 2018 THE WALL STREET JOURNAL.

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 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.
THE WALL STREET JOURNAL.
TAXES
Continued from Page One
workers. And this is just the
beginning. The U.S. Treasury
and the Internal Revenue Ser-
vice have offered guidance on
just a few of the two dozen
provisions in the law that will
likely require formal regula-
tions. Companies must navi-
gate complex rules imposing
minimum taxes on foreign in-
come, tax breaks for partner-
ships, faster deductions for
capital spending and new lim-
its on interest and operating-
loss deductions.
“We’re only 30 days into
the tax reform process,” Low-
ell McAdam, chief executive of
Verizon Communications Inc.,
told investors on Tuesday.
“We’re all trying to under-
stand the implications.”
Along with announcing its
repatriation of cash held over-
seas last week, Apple Inc.
pledged to invest $30 billion in
the U.S. that it had held
abroad, despite having to pay
$38 billion under a one-time
tax on those accumulated for-
eign profits. Goodyear Tire &
Rubber Co. now estimates it
won’t pay cash taxes until
2025, because its existing
credits will stretch out an ad-
ditional five years when used
to offset taxes at new, lower
corporate rates.
Varying impact
That the tax bill will have
significant effects on corpo-
rate finances is certain, though
the effects can vary widely by
company. Already, analysts ex-
pect the legislation to provide
a 7% to 8% boost in aggregate
per-share profits for the com-
panies in the S&P 500 this
year, said Joseph LaVorgna,
chief economist for the Ameri-
cas at Natixis, an international
Effective Tax?
Large U.S.-traded companies are generally forecasting declines in their
effective tax rates in the wake of December's federal tax overhaul.
Effective tax rate forecast under new tax law
Effective tax rate range over two most recently reported years
0%
United Natural Foods*
T. Rowe Price Group†
D.R. Horton*
PPG Industries*
Darden Restaurants*
Edwards Lifesciences†
Ameriprise Financial†
IBM†
Eaton†
Sources: Company filings; company
conference calls; interviews
Grocery distributor United Natural Foods Inc., which supplies
Whole Foods, is investing to overcome capacity bottlenecks.
CASKET
Continued from Page One
find Trey Ganem, a former
hot-rod car artist in Edna,
Texas, who works in a small
but growing corner of the U.S.
casket market. He and his staff
build as many as five custom-
ized caskets a week.
For R&B singer Percy
Sledge, Mr. Ganem made a
black-and-white casket in 2015
with a portrait of Mr. Sledge
on the head panel and adorned
in music notes. A microphone
was mounted on top.
“He always held on to his
microphone,” Rosa Sledge said
of her late husband, who sang
the 1966 pop hit “When a Man
Loves a Woman.”
Mr. Ganem interviews his
clients about the passions, ca-
reers and tastes of their loved
ones for design ideas. He said
he started thinking about it 25
years ago, at the wake of a
teenage hunting buddy. He
wondered why his friend, who
died of a heart condition, was
buried in such a dull casket.
“Wouldn’t it be cool,” he re-
called thinking, “if we had
financial-services arm of
France’s Groupe BPCE.
A big part of that comes
from companies spending
more, feeding revenues to
other firms in what can be-
come a virtuous cycle, Mr.
LaVorgna said. He believes an-
alysts and the market may be
underestimating the effect.
“Somebody else’s capital
outlay is another company’s
income,” he said. “If there’s a
surprise, things may actually
be better.”
Some economists caution
the economic impact may not
quite measure up to the
growth in profits. Oxford Eco-
nomics, a forecasting and con-
sulting firm, estimates the leg-
islation will contribute 0.4
percentage points to already-
robust economic growth in
2018, and another 0.1 to 0.2
points in 2019, said Gregory
Daco, head of U.S. economics
for the consultancy.
About half of that is likely
to come from business spend-
ing, and the rest from house-
holds, Mr. Daco said. Oxford
estimates that each $1 of cor-
porate tax cut will lead to 40
cents of spending, based on
historical precedent, Congres-
sional Budget Office studies
and conversations with corpo-
rate executives.
That’s mostly a one-time
gain. A reduction in taxes frees
up profits to spend, but that
then becomes the new normal,
with further growth coming
from general economic expan-
sion or other factors.
At Amicus Therapeutics, the
new tax law solved a geo-
graphic dilemma. The Cran-
bury, N.J., company is develop-
ing an experimental drug to
treat Pompe disease, a rare in-
herited disorder that causes
muscle weakness and can be
fatal.
After early results for a new
drug proved promising, Am-
icus wanted to increase pro-
ci on
er rs
5 10 15 20 25 30
m e
m rp
co Fo
Two most recently reported years: *2016-17 †2015-16
THE WALL STREET JOURNAL.
n-
no
camouflage, or deerskin, to re-
mind us of things he used to
do?” The thought turned into
a business for him about five
years ago. It turned out that
Americans also were inter-
ested in personalizing the fi-
nal memorials for loved ones.
When Danny Wheldon, a re-
tired firefighter in Enid, Okla.,
died at age 73, his wife, Linda,
had one of their neighbors
build a camouflage-and-fire
theme casket topped with a
firefighter’s helmet.
The only instructions Mr.
Wheldon had left for his burial
were, “Do not spend a bunch
of damn money on a casket,’”
said his daughter Toni Luetjen,
who had qualms about going
custom. “At first I said, ‘Mom,
this is so redneck. But she
said, ‘No, I’m doing it.’ ”
Most people purchase cas-
kets through funeral homes,
which typically have contracts
with large manufacturers such
as Batesville. The Indiana-
based casket-maker has
started offering to put photos
or military emblems on head
panels, said Troy Turner, chief
of sales and marketing.
Rick and Shana O’Brien, of
South Jordan, Utah, had at
* *
IN DEPTH
duction for further clinical
testing and potential commer-
cial sales.
Amicus, which had been us-
ing Chinese contract manufac-
turer WuXi Biologics to supply
the drug, decided in August to
build its own facility. The U.S.
was at a disadvantage to Eu-
rope, due to its 35% statutory
federal income-tax rate for
companies. Ireland’s corporate
tax rate, by contrast, is 12.5%.
Those financial consider-
ations threatened to over-
shadow other advantages that
a U.S. plant would offer.
“Our strong assumption
was that it would be very chal-
lenging to establish a new bio-
manufacturing facility in the
U.S.,” Chief Executive John
Crowley said in an interview.
As the tax legislation ad-
vanced in Congress last fall,
however, building in the U.S.
began to look more attractive.
Mr. Crowley recommended to
his board the company focus
on finding a U.S. site. The
company has narrowed its
choice to three East Coast cit-
ies Mr. Crowley declined to
identify. It expects the plant to
cost $150 million to $200 mil-
lion, and to employ at least
200 people at an average pay
of $100,000 a year.
The rules of deal making,
too, are changing. In the past
two months, Aramark com-
pleted two acquisitions with a
price tag of $2.35 billion as it
snapped up hotel procurement
and supply firm Avendra in De-
cember and uniform-rental and
linen-supply firm AmeriPride
Services Inc. last week.
Both are a kind of deal that,
thanks to the new tax law, has
become cheaper. One provision
on lets companies deduct the cost
of buying some sorts of assets
immediately, instead of over
several years as prior tax law
required—and expanded this
us l,
treatment to used assets as
well as new ones.
al a
e
That essentially lets a buyer
like Aramark get an immediate
discount on the cash cost of
part of its deals, the portion
that reflects the acquisition of
equipment, machinery and
other tangible property.
Aramark’s acquisition of Av-
endra, a partnership, is auto-
35 40 matically treated as an asset
purchase, New York tax con-
sultant Robert Willens notes,
while deal documents indicate
Aramark and AmeriPride
agreed to treat that acquisi-
tion as an asset purchase as
well for tax purposes.
Immediate discount
“The cost of deals struc-
tured in this manner have
taken a turn for the better,”
Mr. Willens said. “You’re get-
ting a full 21% discount.”
In news releases, Aramark
described its after-tax cost for
the two deals as $1.86 billion,
21% less than the pretax price.
Aramark said in a statement
that it continues to evaluate
the impact of the new tax law
with accounting firm KPMG
LLP, and plans to update inves-
tors on the acquisitions when
it reports quarterly earnings
on Feb. 6.
The same provision, speed-
ing up tax deductions for capi-
tal spending, has prompted
UNITED NATURAL FOODS
Kimberly-Clark, the diaper-
and tissue-maker, to accelerate
at least one major project,
CEO Tom Falk said. The com-
pany’s board votes next month
on a U.S. factory retooling ex-
pected to cost hundreds of
millions of dollars. There
first picked a traditional cas-
ket for their son Riley, who
died at age 21 in a 2010 car ac-
cident. Their younger son
Shad objected: “That’s not go-
ing to work for my brother,”
he said. The family picked a
casket with elk-antler handles
and an outdoors theme to re-
flect Riley’s love of hunting.
The Casket and Funeral
Supply Association of America
estimated that 1.6 million cas-
kets were sold in the U.S. in
2015, the last full year of avail-
able data. The average price
for a metal burial casket is
about $2,400, according to the
National Funeral Directors As-
sociation. Custom ones can
run from $1,800 to $16,000.
Kurt Soffe, a fourth-genera-
tion funeral director, esti-
mated as many as 90% of cas-
kets sold at his Jenkins-Soffe
funeral home in South Jordan,
Utah, now have custom de-
tails. Baby boomers, he said,
“they like things their way.”
The married tattoo artists
JD and Julie O’Kelly of Port-
land, Ore., have started build-
ing custom caskets. Mr.
O’Kelly said it was a natural
move for a tattoo artist,
whose art eventually gets bur-
Amicus Therapeutics CEO John Crowley, right, chose the U.S. over Europe for a new facility.
Tax Split
Corporations have accounted for anywhere from an eighth
to a quarter of all federal income tax receipts since 1986.
Income tax receipts: Corporations
$2.25 trillion
2.00
1.75
1.50
1.25
1.00
0.75
0.50
0.25
0 scrapping the performance
1986 1990
Notes: 2016 and 2017 figures are estimates; fiscal year ends Sept. 30
Source: Office of Management and Budget
wasn’t a timeline for the proj-
ect previously.
“It gives us more incentive
to invest, particularly in the
U.S.,” Mr. Falk said in an inter-
view. “The project made sense
before the tax benefit. It
makes more sense after the
tax benefit.”
Similar reconsiderations are
under way elsewhere. At
United Natural Foods Inc., a
grocery distributor with about
10,000 employees and more
than $9 billion in annual reve-
nue, the tax law has prompted
a wholesale re-evaluation.
Projects previously viewed
as risky are being given new
consideration, Mike Zechmeis-
ter, the company’s finance
chief, said in an interview. The
return on investment im-
proved by 4 percentage points
on a warehousing project in
the Pacific region of the U.S.
that the company had already
decided to pursue, he said, pri-
marily because of the new
lower tax rate.
“It’s going to impact all the
decisions we make,” Mr. Zech-
meister said.
The tax break comes at a
particularly good time for
United Natural Foods, which
has struggled to keep pace
with surging demand for natu-
ral and organic goods. The
company’s net sales rose 8%
year-over-year during its last
quarter to $2.5 billion, driven
largely by Whole Foods, the
chain acquired by Ama-
zon.com Inc. last year and
United Natural’s biggest cus-
tomer.
That sudden growth proved
costly. The Providence, R.I.,
company had an additional
$25 million in lost sales from
out-of-stock goods during its
last quarter, along with higher
A casket customized by Trey Ganem, a former hot-rod car artist.
ied with its owner.
“It’s like Iggy Pop, staring
death in the face and keeping
on rocking,” he said. The cou-
ple use cabinet-grade plywood
with hemlock pine mouldings
to fashion motifs in Gothic and
pre-Christian European styles.
The ashes of loved ones
have found their own special
resting places. Online retailers
offer cremation urns in the
shape of Superman and former
President Barack Obama’s
head, starting at $600 for the
“keepsake size.”
Friday, January 26, 2018 | A9
MELISSA GOLDEN FOR THE WALL STREET JOURNAL
The tax overhaul is altering
corporate operations in some-
times surprising ways. Netflix
Inc., for example, has changed
the compensation it will pay
Individuals three of its top officers, rais-
ing their salaries by a com-
bined $19 million.
Its reasoning: The new tax
law prevents companies from
deducting any sort of pay over
$1 million apiece for key exec-
utives. Prior law allowed com-
panies to deduct that pay if it
was tied to performance. So,
having lost the benefit of a tax
deduction for paying perfor-
mance-based bonuses instead
of salary, Netflix announced
days after the tax law was
.
passed that its board was
ly
2000 2010 measures and converting the
pay into straight salary in-
THE WALL STREET JOURNAL. stead, as it used to do before
2014.
labor costs and storage fees. The tax-law change is likely
Any expansion would help to eliminate tax deductions on
ease capacity bottlenecks that $92 billion of pay, according to
the company intends to re- an analysis of Russell 3000
solve in coming months. firms by Equilar. Several large
Some companies are hold- companies—including Johnson
ing pat, either because they Controls International PLC and
want to see how the new rules drugmaker AmerisourceBergen
shake out, or because they are Corp.—have said their boards
worried about moving too fast. are considering how the tax
Verizon said it would use change affects their approach
most of its tax savings—$3.5 to compensation.
billion to $4 billion in extra The ripple effects are hit-
cash in 2018—to pay down ting small businesses, too.
some of its $117 billion debt, Matthew Wells, president of
rather than increase invest- Western Mechanical Contrac-
ments. It will also donate to tors Inc. in Federal Way,
its charity and give employees Wash., is considering whether
company stock. to restructure how his busi-
Mr. McAdam, the Verizon ness is organized to maximize
his benefits under the new tax
law.
The 32-person plumbing
‘It gives us more and mechanical contracting
incentive to invest, firm is currently set up as an S
corporation, a so-called pass-
particularly in the through structure in which the
U.S.,’ a CEO said. business itself isn’t taxed and
its income goes to the owners,
who reflect it on their individ-
ual tax returns.
CEO, said the wireless giant Mr. Wells is trying to deter-
would remain disciplined mine whether his tax bill
about capital spending. “It’s would fall if he switched to a C
very inconsistent that just be- corporation, which pays its
cause tax reform comes own income taxes directly to
through, we are all of a sudden the Internal Revenue Service—
going to draw the line at a dif- now at a 21% rate, down from
ferent place or lose that disci- a top rate of 35% before the
pline,” he said. new law.
Bank of America Corp. is Mr. Wells’ accountant is
exploring how it might invest still poring over the new law,
in branches, technology and its but has suggested the poten-
workforce, CEO Brian Moyni- tial benefits may not be as
han told investors last week. great as the contractor ini-
“However, to be clear, we’d ex- tially believed. “I think they
pect most of the benefits from are going to try and talk us
tax reform will flow to the out of it,” said Mr. Wells. “But
bottom line through dividends it is certainly something we
and share buybacks over are looking into.”
time,” he added. A spokesman —Sharon Terlep, Ruth Simon
said payouts to shareholders and Ryan Knutson
will also help local economies. contributed to this article.
“You have the body of a
Hercules, but the head on top
is of a wizened 70-year-old
Roman aristocrat with saggy
jowls, a receding hairline, and
five chins,” said Mont Allen,
an expert on Roman funerary
sculpture at Southern Illinois
University.
The impulse is timeless, he
said: “It’s about how you would
want to be remembered.”
TREY GANEM DESIGNS
Custom caskets can also
give comfort to those left be-
hind by tragedy.
Paola Delgado, of Shepherd,
Texas, couldn’t bear to bury
her 3-year-old daughter Isa in
a monotone casket. The tod-
dler died shortly before her
Darien Martinez-Blanco, a fourth birthday, after a
Cuban émigré and cemetery monthslong battle with a brain
counselor in Miami, said some tumor.
families put the ashes of loved Isa had wanted a Peppa Pig
ones in ornate cigar humidors. birthday party, so Ms. Delgado
Customized caskets have a commissioned a purple and
long history. The ancient Egyp- pink casket with scenes of the
tians went all out for members cartoon character on the side.
of the royal family. One showed Peppa happily
During the Roman Empire, riding a bike, which Isa never
families of the rich and noble got to do.
commissioned expensive mar- “I wanted to celebrate that
ble sarcophagi, sometimes with God made me a mother,” Ms.
their faces substituted for Delgado said. “I knew Isa
those of gods, known as myth- wouldn’t have wanted us to be
ological portraiture. sad.”
 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.
A9A | Friday, January 26, 2018
GREATER NEW YORK
CLAUDIO PAPAPIETRO FOR THE WALL STREET JOURNAL (3)
Sherron Paige holds her 4-year-old son Kyan Dickerson, who tested positive for elevated blood-lead levels this past August.
Few Children Take Free Lead Tests
BY MARA GAY
More than a month after
New York City began offering
free lead testing to nearly 3,000
children living in public-housing
apartments in the wake of a
lead-paint scare, only 73 chil-
dren have been tested under the
initiative, city officials said.
Mayor Bill de Blasio’s ad-
ministration offered the test-
ing after a Department of In-
vestigation probe last year
found the city’s housing au-
thority had failed to conduct
lead inspections for four years,
violating city law and federal
rules. The mayor and New
York City Housing Authority
Chairwoman Shola Olatoye
have said the lapses were un-
acceptable and that the city is
working to ensure residents
are safe and failures in compli-
ance don’t happen again.
In December, city officials
began conducting outreach to
residents in about 2,300 pub-
lic-housing apartments with
possible lead-paint hazards,
offering free lead testing to
their children. None of the 73
children tested so far have
showed elevated blood-lead
levels, the officials said.
De Blasio administration offi-
cials said the city had made the
testing initiative accessible and
promoted it widely. In one Dec.
14 letter to residents, city offi-
cials directed parents to a
hotline where they could make
an appointment to test their
children. The letter said the city
was offering the testing to chil-
dren ages 6 months to 8 years
old “out of an abundance of cau-
tion.” City officials said they
mailed the letter and slipped it
under the doors of residents.
no
Carwash Cheated City Hires Firm to Study Jail Options
Workers, State Says
BY ZOLAN KANNO-YOUNGS
A Brooklyn carwash busi-
ness stole more than $540,000
in wages and benefits from its
employees, New York Attorney
General Eric Schneiderman al-
leged in a lawsuit filed Thurs-
day in Brooklyn Supreme
Court.
Mr. Schneiderman, a Demo-
crat, said the lawsuit against
Tropical Breeze Car Wash in
Brooklyn’s East Flatbush
neighborhood is a warning to
companies exploiting work-
forces that include undocu-
mented immigrants.
The attorney general’s office
said it has recovered $2.5 mil-
lion for more than 1,000 work-
ers at 26 separate carwash lo-
cations in New York since 2012.
Mr. Schneiderman is seeking
$1.6 million in restitution, dam-
ages and penalties in the Tropi-
cal Breeze case.
For the past six years, Tropi-
cal Breeze underpaid more than
150 employees by cutting time
from their employment cards
and not paying for overtime
hours, the attorney general al-
leged. The business also denied
workers reimbursement for
mandatory uniforms and failed
to give them earned paid sick
leave, he added.
“We will pursue you if
you’re ripping off your work-
on
us l,
al a
e
ci on
The Red Hook East housing complex, where Ms. Paige lives. She
indicated a spot in her home where the city removed lead paint.
er rs
m e
m rp
co Fo
In another outreach effort,
the city used robocalls to con-
tact each of the 2,300 house-
holds twice.
Residents who call the
hotline can set up appointments
for their children to receive free
n-
lead testing at one of about 30
public hospitals across the city.
“We have reached out ag-
ers,” Mr. Schneiderman said.
“It’s no protection if the work-
ers are immigrants.”
Tropical Breeze didn’t return
multiple calls to the business
for comment. Personal phone
numbers couldn’t be found for
owner Benno Gmuer and man-
agers Philip and Gregory Gm-
uer.
The carwash also violated
the law by managing two sepa-
rate payroll systems for “on-
the-books” and “off-the-books”
employees, the latter making
up a majority of the staff, the
$1.6M
Amount the attorney general is
seeking from the Brooklyn firm.
attorney general’s office al-
leged. The carwash failed to
provide payment statements to
the off-the-book employees and
didn’t give information about
rate of pay, or wage notices, to
any employees, they said.
The investigation began af-
ter carwash employees re-
ported the situation to their
union, as well as to Make the
Road New York, an immigrants-
rights organization.
NY
gressively to offer this free
testing to residents by both
letter and by phone,” de Blasio
spokeswoman Olivia Lapeyrol-
erie said in a statement. “It is
important to remember that
NYC already has the highest
testing rates in the state, and
we are committed to increas-
ing it further.”
BY CORINNE RAMEY
New York City has hired the
architecture-and-design firm
Perkins Eastman to study
where and how to build jails
that eventually would replace
those on Rikers Island, which
officials are working to close
in the next decade.
Four firms submitted pro-
posals for the project, city of-
ficials said.
Perkins Eastman, which
was awarded the $7.6 million,
10-month study, will deter-
mine whether current jails
could be expanded, and pro-
pose locations for new, more
modern jails. The process also
will involve talking to neigh-
borhood groups, looking at
the environmental impact and
thinking about design, said
Elizabeth Glazer, director of
the Mayor’s Office of Criminal
Justice.
“A critical part of that is
thinking about jails not as a
place that is on an island, hid-
den from all lives, but as part
of the ebb and flow of neigh-
borhoods and considered civic
assets,” Ms. Glazer said.
For example, a jail in San
Diego is filled with light and
has soft furniture and glass,
she added.
Perkins Eastman will study
three existing jails, in Manhat-
tan, Brooklyn and Queens, and
identify new sites, including in
the Bronx, city officials said.
She said 80% of children in
New York City are tested for
lead by their third birthday.
Rates of lead poisoning
among New York City children
fell 74% in recent years, from
2,705 in 2005 to 702 in 2016,
according to city data.
Still, from 2010 to 2016, 227
children living in public housing
showed elevated blood-lead lev-
els, 18 of them from lead paint,
according to data from the city’s
health department.
One child, 4-year-old Kyan
Dickerson, tested positive for
elevated blood-lead levels last
August, according to his mother
and her attorney.
Kyan was exposed to lead
paint for about 15 months after
senior city officials were aware
of the lapses in inspections, ac-
cording to attorney Corey Stern,
who has filed a lawsuit against
the city on behalf of Kyan and
his mother, Sherron Paige.
City officials didn’t respond
to requests for comment.
Ms. Olatoye, Mr. de Blasio
and other senior city officials
knew as early as April 2016
that the required lead-paint
inspections hadn’t taken place.
Residents weren’t informed
until last July. Both Ms. Ola-
toye and Mr. de Blasio have
said the city should have told
residents sooner.
Mr. de Blasio on Monday
said the housing authority’s
general manager, Michael Kelly,
would step down, and that Vito
Mustaciuolo, a deputy commis-
sioner at another city housing
agency, would serve as acting
general manager. A City Hall
aide said Mr. Kelly, who had
been in the role since March
2015, left on his own terms. His
salary was $216,000 a year.
A design firm will propose locations for new, more modern jails, such as the one above in San Diego.
The current city jail in the
Bronx is on a barge in the East
River, which officials say they
can’t expand. City officials say
they aren’t looking to build a
jail on Staten Island.
Among the 17 subcontrac-
tors for the project are the Os-
borne Association, a criminal-
justice nonprofit, and
RicciGreene Associates, an
architecture firm that has
worked on jail facilities in New
* * THE WALL STREET JOURNAL.
After Infractions,
Most Teachers
Return to Class
BY LESLIE BRODY
One third-grade teacher in
New York City smacked stu-
dents on their backs to punish
them for acting up. Another
elementary-school teacher
told children to ignore a class-
mate with special needs be-
cause he was acting like a
“mental patient.”
And during a three-year
span, a high-school teacher
repeatedly was found to have
failed to plan and execute les-
sons when his superior ob-
served his classes.
These tenured teachers
kept their jobs, although the
New York City Department of
Education tried to fire them
through legal proceedings. In
rulings during the past year,
arbitrators substantiated
these teachers’ misconduct
but gave them another
chance, along with such pen-
alties as suspensions and
fines.
.
These cases illustrate a di-
ly
lemma in New York and other
states: How to provide ten-
ured teachers due process
while protecting students’
rights to quality education.
Some critics of tenure say the
job protections are too strong.
Teachers unions counter that
tenure doesn’t grant a job for
life, but guarantees fair hear-
ings and shields teachers from
vengeful or arbitrary firings.
A ruling this month from
the state’s highest court illus-
trates how time consuming it
The law was changed
in 2015 to hasten the
dismissal of teachers
charged with abuse.
can be to remove a teacher. In
2013, an arbitrator dismissed
Terrell Williams, a New York
City gym teacher, for asking
several eighth-grade girls if
they had eligible older sisters.
After several rounds of ap-
peals, a final decision from
the Court of Appeals said a
lower court overstepped its
authority in reversing the dis-
missal. His final termination
this month came about six
years after his misconduct.
His lawyer didn’t respond to
questions seeking comment.
Advocacy groups have re-
leased numerous studies to
highlight the issue. The Part-
nership for Educational Jus-
tice, which has organized law-
Haven, Conn., and Denver,
among others.
Shutting down Rikers Is-
land, which has long been
plagued by violence, is part of
creating a smaller, fairer crim-
inal-justice system, city offi-
cials say. They previously have
said the city jail population
needs to shrink to 5,000 from
nearly 9,000 today to close the
complex.
Perkins Eastman, which is
Report Card
Tenured teachers terminated by
arbitrators for misconduct or
incompetence in New York state
75
50
25
0
FY2012 ’13 ’14 ’15 ’16
Note: Fiscal year begins April 1 of year shown
Source: New York State
Education Department
THE WALL STREET JOURNAL.
suits in several states in hopes
of making it easier to fire un-
derperforming teachers, said
this month it scrutinized the
outcomes of all termination
hearings in New York state
completed from 2010 through
2015.
While arbitrators agreed
that 309 of 773 teachers in
these disputes should be dis-
missed, the report said 454
kept their jobs after being
found guilty of verbal or phys-
ical abuse of students, exces-
sive absenteeism, breaking
rules on test security or other
transgressions. Only nine were
fully acquitted and one re-
tired.
Union leaders say the real
problem plaguing schools is
insufficient funding.
“Hundreds of teachers
leave the system every year
for professional reasons—fail-
ure to complete certification,
lack of tenure, disciplinary
charges pending or completed,
or other issues,” said Alison
Gendar, a spokeswoman for
the United Federation of
Teachers. “But thousands
more, not eligible for retire-
ment but frustrated with high
class sizes and demanding
teaching conditions, walk
away every year for other
school systems or other pro-
fessions. Which is the larger
problem?”
In 2015, New York Gov. An-
drew Cuomo signed changes
in the tenure law to expedite
dismissals of teachers charged
with student abuse, and
streamlined cases involving
teachers rated ineffective for
two or three years in a row.
Critics contend those steps
didn’t go far enough.
Under the current evalua-
tion system, about 99% of
teachers statewide were
deemed effective in the
2015-16 school year.
LAWRENCE ANDERSON/SAN DIEGO COUNTY SHERIFF’S DEPARTMENT
based in New York City, also
has worked on projects includ-
ing the Port Authority Bus
Terminal, DREAM Charter
School in Harlem, courthouses
in Brooklyn and the TKTS
booth in Times Square.
“We’re used to doing large,
community-driven, complex
projects but I think this is a
very unique challenge for us,
for anybody,” said Nicholas
Leahy, a principal at the firm.
 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.

THE WALL STREET JOURNAL. * * NY Friday, January 26, 2018 | A9B

GREATER NEW YORK

Steakhouses Offer World Beyond Meat and Potatoes

Some new multicultural restaurants are offering traditional big cuts alongside non-American fare and a more relaxed vibe
BY CHARLES PASSY

At Merakia, a restaurant
that opened in Manhattan’s
Flatiron District last Septem-
ber, diners have their pick of
many Greek favorites, from a
yogurt dip to a slow-cooked
lamb stew.
But they also can choose a
dry-aged, bone-in rib-eye or
a Porterhouse for two.
In short, Merakia is a
Greek steakhouse.
“The neighborhood
needed a steakhouse and we
thought we
FOOD & could blend it Executive Chef Giuseppe Scalco
CULTURE without it being at Merakia. A ribeye steak is
a stretch,” said seared, left, and baked before
Merakia owner being served, below left, at the
Renee Typaldos, whose hus- Greek steakhouse. Lamb chops,
band hails from Greece. below, at Jade Sixty.
Merakia is one of a num-
AGATON STROM FOR THE WALL STREET JOURNAL (3)

ber of new steakhouses that

offer traditional big cuts of
meat alongside non-Ameri-
can fare.
Think places like Ikinari
Steak, a Japanese-based chain
that is expanding across Man-
hattan. Or Jade Sixty, a newly
opened restaurant on East

ALEXANDER STEIN
60th Street that pairs steak
with Asian fare ranging from
sushi to Peking duck.
There’s also Nusr-Et
Steakhouse, a Midtown new-
comer courtesy of Turkish tional steakhouse. corporates dishes such as Even traditional steak-
butcher Nusret Gökçe (aka In the case of Ikinari chicken parmigiana and houses are mixing things up.

.
Salt Bae), who became an in- Steak, the chain has gone so clams and shrimp over pasta Take Bobby Van’s, which has

ly
ternet sensation with his far as to largely eliminate on its menu. grown from a single location
one-of-a-kind salt-sprinkling seating—at least in its first “It’s been part of our DNA on Long Island to more than
technique. While the restau- New York location, which for so long,” said Bruce 10 throughout New York City
rant, part of a global chain, on was billed as a “standing” Bozzi Jr., the chain’s execu- and in Washington, D.C.
focuses mainly on beef, it restaurant. tive vice president. The Bobby Van’s formula
does pay homage to its Turk- At its two newer loca- More recently, the Brazil- is mostly about the clas-
ish roots with a dessert of- tions, Ikinari has gone the ian-style steakhouse, or sics—big cuts of beef with
fering of baklava. chair-and-table route, but it churrascaria, where meat is sides such as creamed spin-
us l,

The vogue for multicul- still eschews tradition by served tableside from skew- ach and a baked potato.
tural-minded steakhouses is having customers order at a ers, has found its way to Rick Passarelli, one of the
al a
e
rooted in many factors, res- counter, with the steaks cut New York. owners, says he finds the
taurant-industry insiders say. on the spot to a diner’s siz- Fogo de Chão, a promi- idea of merging a steakhouse
Part of it is a reflection of ing preference and priced by nent churrascaria chain, with another concept a little
ci on

the growing interest in cui- the ounce. opened its first New York lo- much. “The whole thing is a
sines from around the world. The multicultural steak- cation about four years ago. gimmick,” he said.
Moreover, the classic house isn’t an entirely new The chain hasn’t expanded in Still, that hasn’t stopped
steakhouse sometimes can ferent than that” now, said steakhouses aren’t just about invention. The Palm, the the city since that time, but Mr. Passarelli from offering
come off today as a gentle- Clark Wolf, a restaurant con- menus that incorporate steakhouse chain that says it is aiming to grow the sushi, pizza and nachos in
er rs

men’s club-style, formal sultant who is based in New other cuisines. They also aim started in New York in 1926, number of its U.S. locations some locations. Ultimately,
relic. York and California. for a more casual, contempo- began life as an Italian res- from the current 38 to 100- he said, “It just gives cus-
“Our way of eating is dif- Most of the multicultural rary vibe than a conven- taurant and, to this day, in- plus in the coming years. tomers another choice.”
m e

Carnegie to Celebrate Immigrants

m rp

BY CHARLES PASSY Symphony, among other

HIGH RISE
Mandolin groups. The programs will
At a time when immigration virtuoso Chris spotlight works by composers
is a hot-button issue, Carnegie Thile will hold Mr. Tilson Thomas has cham-
co Fo

Hall will host a citywide festi- Carnegie’s pioned during his five-decade

val that “traces the move- composer chair
ments of people” to and for its 2018-19
within the U.S. season.
Called “Migrations: The
Making of America,” the festi-
val, slated to run March 9, the ’60s.
2019-April 15, 2019, is one of Other highlights of the
the anchors of the Manhattan venue’s 2018-19 season include
venue’s 2018-19 season. a seven-concert series curated
Carnegie officials unveiled by conductor, composer and
the season lineup on Thursday. educator Michael Tilson
The festival will incorporate Thomas that features perfor-
performances by a variety of mances by the Vienna Philhar-
n-
LIVING
career, including Mahler, Ives
and Stravinsky.
Meanwhile, Carnegie offi-
cials have appointed composer,
vocalist and mandolin virtuoso
Chris Thile to hold its com-
poser’s chair for the 2018-19
season.
Mr. Thile will be involved in
several programs, including
one that features Nickel Creek
and Punch Brothers, two acous-
tic groups of which he is a

artists, from klezmer clarinet- monic and the San Francisco founding member.
ist Andy Statman to Scottish
singer-songwriter Karine Pol-
wart.
no

Programs will focus on the

stories of different groups that
made their way to the U.S.,
such as the Scottish and Irish
in the 18th and 19th centuries
and the Jews from Russia and
Eastern Europe in the 19th and
20th centuries.
Latin American and Asian
migration also will be repre-
sented in the programming,
Carnegie officials said.
Moreover, the festival will
concentrate on the migration
Reach an affluent Journal audience looking to redefine the skylines in
of African-Americans from the
South to other parts of the U.S. Mansion’s upcoming special section, “High Rise Living”. This editorial feature
In a statement, Carnegie takes a look at the latest technologies and amenities in high-rise buildings,
Hall Executive and Artistic Di-
the forces driving the upper end of the market and views from top architects.
rector Clive Gillinson said the
festival will offer “listeners
the chance to explore musical Issue Date: 2.16.18 | Close Date: 2.8.18 | Section: Mansion
legacies” of people who
“helped shape what we con-
sider to be American arts and For more information, please contact Tiffany Roberts
culture today.”
Carnegie Hall has had suc-
at tiffany.roberts@wsj.com | 214.640.7899
cess in recent seasons pre-
senting similar thematic
events. It currently is hosting
a festival spotlighting the po-
litical and cultural legacy of

CORRECTIONS 
AMPLIFICATIONS
U.S. Sen. Bob Menendez, a
New Jersey Democrat, was ac-
quitted of some corruption
charges. An article Thursday
incorrectly said some of the
© 2018 Dow Jones & Company, Inc. All Rights Reserved.
counts were dismissed.

Readers can alert The Wall Street

Journal to any errors in news articles
by emailing wsjcontact@wsj.com or
by calling 888-410-2667.
 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.

A10 | Friday, January 26, 2018 THE WALL STREET JOURNAL.

LIFE&ARTS
ART

Self-Taught Outsiders
Looking In
New exhibition at Washington’s National Gallery ‘Outliers and American
Vanguard Art’ examines the role of untrained artists in the mainstream
BY SUSAN DELSON

WHEN SHE TOOK UP painting in

the late 1930s, Janet Sobel was a
housewife in Brooklyn.
Her early efforts recalled the
folk art of her native Ukraine, but
she soon revealed a flair for the
experimental. Using enamel paints
and glass pipettes, Sobel began
dripping color onto her paintings
in abstract patterns.
Her work caught the eyes of
surrealists Max Ernst and André
Breton and went on to influence
Jackson Pollock. Peggy Guggen-
heim—doyenne of New York’s
avant-garde art scene—gave her a
solo show in 1946. And the Mu-
seum of Modern Art later acquired
two of her works. Clockwise from top: Marsden Hartley’s ‘Adelard the Drowned, Master of the
Today, Sobel’s pole-vault into “Phantom;”’ Horace Pippin’s ‘Interior;’ H.C. Westermann’s ‘Walnut Box’ and

.
the art-world vanguard seems a ‘Men Drinking, Boys Tormenting, Dogs Barking,’ by Bill Traylor.

ly
stunning anomaly, but back then
works by self-taught or folk artists
were part of many modern-art mu-
seum collections, said Lynne on
Cooke, a senior curator at the Na-
tional Gallery of Art in Washing-
ton, D.C.
A show curated by Ms. Cooke—
us l,

“Outliers and American Vanguard

Art”—opening at the museum on
al a
e
Sunday—explores why and how to
change that. The show brings to-
gether over 270 works by more
ci on

than 80 artists—an eclectic mix of

art-world stars, acclaimed un-
schooled artists, and less known
creators of all stripes.
“This is not a history of folk art
er rs

or self-taught art,” Ms. Cooke said.

“It’s an exploration of the way the
contemporary art world—the van-
guard American art world—has en-
m e

gaged with this work.”

“Outliers” is organized in three
sections, reflecting three eras in
m rp

American culture when exchanges

between outsiders and mainstream
art were intense: between the two reer path inspired a later genera- traits of the 1970s.
World Wars; the late 1960s to the tion of Art Institute grads also on The vivid narrative that unfolds
early 1990s; and the late 1990s to view at the show, including Roger in Kara Walker’s print portfolio
co Fo

2013. All three were “moments of
social, political and cultural un-
rest,” said Ms. Cooke, when tradi-
tional boundaries between main-
stream and margin, insider and
outsider, frayed.
Painter Horace Pippin exempli-
fies that process. Pippin was con-
sidered a self-taught artist who
came to prominence in the 1930s
amid a rising interest in folk art
and other quintessentially Ameri-
can cultural expressions. As he be-
came more of an art-world insider,
or he’s no longer a self-taught art-
ist. Or he never was one.”
The same might be said of other
untrained artists in the show, such
as William Edmondson and Bill
Traylor, whose retrospective opens
in September at the Smithsonian
American Art Museum.
At the other end of the spec-
trum, trained artists like the mod-
ernist painter Marsden Hartley—
who exhibited in Europe alongside
Wassily Kandinsky and other cut-
n-
plied modernism’s spare, reductive
style to depict folk-art objects.
Charles Sheeler, known for sharply
geometric paintings and photo-
graphs of industrial sites, took
that approach in his 1917 photo-
graphs of a hand-built 18th-cen-
tury house in Pennsylvania.
Along with little-known self-
taught artists like Sobel, the
show’s discoveries include trained
artists whose work rarely appears
in museums these days. Sculptor
Brown, Gladys Nilsson, and Jim
Nutt of the Chicago Imagists group.
“Outliers” also spotlights artists
who are gaining (or regaining) art-
world currency—including painter
Yasuo Kuniyoshi, who was active
in the early- to mid 20th century
and the subject of a retrospective
at the Smithsonian American Art
Museum in 2015.
By bringing together such a
broad, adventurous swath of art-
ists and questioning their relation-
ship to each other, “Outliers” casts
“Harper’s Pictorial History of the
Civil War (Annotated)” (2005) is
deepened by its proximity to
works like Sam Doyle’s painting of
Abraham Lincoln’s supposed visit
to Doyle’s South Carolina home
town.
And a robust visual dialogue un-
folds among the abstract canvases
of Mary Heilmann and Howardena
Pindell and the abstract quilts by
self-taught artists Annie Mae Young
and Mary Lee Bendolph of Gee's
Bend, Alabama, and West Coast

with his work shown and acquired
by major museums, the “self-
taught” label, and its connotations
of naivete and unsophistication, no
no
ting-edge artists—might opt for a H. C. Westermann studied at the even well-known artworks in a quilt artist Rosie Lee Tompkins.
deliberately naïve style when the School of the Art Institute of Chi- new light. Some curators would argue that
subject demanded it. Case in point: cago but maintained a careful dis- The provocative posturing in no difference exists between self-
Hartley’s 1918 work “Blessing the tance from the art world. His photographer Cindy Sherman’s taught and trained artists, Ms.

longer quite fit. Melon (The Indians Bring the Har- “Walnut Box” (1964) combines ex- “Untitled Film Stills” (1977–79) Cooke said, but she believes that
By the end of his career, vest to Christian Mary for Her quisite woodworking with a whim- takes on added resonance along- those distinctions can and should
“there’s a spectrum of percep- Blessing)” was inspired by a type sical approach to subject matter, in side Eugene von Bruenchenhein’s be acknowledged. Within the
tions” and confusion around Pip- of devotional painting common in a beautifully crafted container adoring, erotic photographs of his show’s inclusive, questioning pan-
pin’s work, said Ms. Cooke. “Either the Spanish-speaking southwest. filled with—what else?—walnuts. wife Marie, done in the 1940s, and orama, she added, “difference
he’s a remarkable self-taught artist Other artists in the show ap- Westermann’s independent ca- Lee Godie’s photo-booth self-por- doesn’t have to read as deficit.”
CLOCKWISE FROM TOP RIGHT: THE FREDERICK R. WEISMAN ART MUSEUM AT THE UNIVERSITY OF MINNESOTA; NATIONAL GALLERY OF ART; ROBERT H. BERGMAN AND MARIE KRANE; PHILADELPHIA MUSEUM OF ART

TELEVISION REVIEW | By John Anderson

BLOOD-SOAKED DRAMA, BUT IS IT BINGEABLE?

HALF-COCKED historical drama?
A reckless plunge into ancient cul-
tures? Something to soothe that
“Game of Thrones” jones? “Britan-
nia” might just be your cup of
magic herbal tea, especially if you
don’t mind the odd flaying, cruci-
fixion and—offscreen, mercifully—
castration. Or enough anachro-
nisms to sink a Roman trireme.
Violence it has. Also, domestic
drama. Dynastic intrigue. A soup-
çon of the supernatural. Set in A.D.
43, during the second Roman inva-
sion of the British Isles-to-be, the
nine-part “Britannia” also displays
what might be an unfortunate side
effect of the rise of bingeable
drama—the seeming nonchalance
with which writers are approach-
ing a storyline. Creator Jez Butter-
worth and company drop the
viewer into first-century Britain
the way an American driver might
be dropped onto the wrong side of
AMAZON STUDIOS
tion given there’s so little informa-
tion provided, other than a couple
of introductory titles about Julius
Caesar’s armies having been
scared off by the Druids in 55 B.C.,
and the Roman Empire waiting 90
years to try again.
What we can infer is that epi-
sode 1 opens on the summer sol-
stice—a druidical high holy day—
and the occasion of a kind of
Celtic bat mitzvah for the adoles-
cent Cait (Eleanor Worthington-
Cox), whose whitewashed face is
bright with anticipation for the
ceremony awaiting her. She’s com-
forted by her soon-to-be-eviscer-
ated older sister; the two chat
cheerfully, as if they’d just checked
out “pagan rituals” on Pinterest.
Shortly thereafter, the Romans ar-
rive and the business of pillage,
maiming and murder commences.
The competition to create the
next viewer obsession on stream-

London’s Hatton Cross Roundabout able TV is fierce, and so is “Britan-

in a ’57 Morris Minor equipped nia”: The violence isn’t on a level
with manual transmission. They previously unseen, exactly, and it
presume we’ll keep watching, certainly seems commensurate
Kelly Reilly is the lethal, flame-haired archer Kara of the Regni in Amazon’s ‘Britannia.’ which is something of a presump- Please see TELEVISION page A11
 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.

THE WALL STREET JOURNAL. Friday, January 26, 2018 | A11

LIFE & ARTS

FILM REVIEW

Acidic, Astute and Very Animated

BY JOHN ANDERSON

MANY CLASSIC MOVIES can be

summed up by a single scene, or
even a single shot: Norman Bates
behind a shower curtain with a
knife; Charles Foster Kane drop-
ping a snow globe down the stairs.
In the delicious “Have a Nice Day,”
the most significant image might
be the bag of 100-yuan banknotes,
each bearing the face of Chinese
communism’s sainted Mao Zedong,
and which animator/director Liu
Jian returns to time and again. David Morrissey in ‘Britannia’
That they are stolen banknotes is

TELEVISION
part of the joke.
The thief is named Xiao Zhang
(voice of Zhu Changlong), a lowly
driver on one of southern China’s Continued from page A10
multifarious construction sites. with the barbaric age at hand. But
That the construction site is the authenticity that the show as-
mobbed up seems a given; and pires to in, say, its physical por-
that the money belongs to a big trayal of certain people—the chief
boss named Uncle Liu (Yang Sim- Druid, Veran (Mackenzie Crook),
ing) sets the gangster movie in looks like a corpse on a juice
motion. The chase-and-revenge- fast—contrasts oddly with the dia-
driven plotline of “Have a Nice Liu Jian’s subversive Chinese feature follows a bag of stolen money. logue and, certainly, the motley
Day,” which is a purely ironic title, collection of accents. (The Romans
needless to say, suggests the cir- freedom.” There’s certainly no deliver philosophical pronounce- Swim, perhaps, albeit without the don’t sound Italian, but a couple of
cumnavigations of a “Pulp Fiction”; great leap forward underlining ments rife with nihilistic cynicism. withering political commentary— the locals do.) Was biting sarcasm
the rhythms are out of Jim Jar- “Have a Nice Day,” but rather a One couple, in hot pursuit of the is perfect for his story. a thing back in A.D. 43? Would a
musch; Mr. Liu’s gift for finding malignant vein of Westernized cash, dream of a place called Shan- It’s a story that doesn’t quite Druid-era adolescent have said, “I
corruption in every seemingly in- consumerism/narcissism. gri-La, their imaginings trans- follow the money. The money is a hate you sooo much!”? Did Druids
nocent circumstance is something The way Mao’s visage haunts formed by the mischievous Mr. Liu maguffin, as per Hitchcock. It’s really wear tiny rings at the tips of
he shares with Robert Crumb. the proceedings was probably just into a karaoke video wherein they about the characters, who include their gnarly pierced fingers? Could
Not to say any of these sources one of the reasons Chinese authori- assume various heroic poses out of a hit man/butcher named Skinny be a fashion trend. But you can’t
ought to find Mr. Liu’s references ties forced a withdrawal of the film Chinese Communist poster art of (Ma Xiaofeng) who goes in search take this stuff too seriously. No
flattering, necessarily. Our “hero,” from the Annecy International Ani- the ’60s (workers in headscarves of Zhang, and finds him rather one else, evidently, did either.

.
Zhang, has spontaneously put his mated Film Festival in France last saluting the future, etc.). easily—in a nation of 1.4 billion One would probably have to get

ly
life in danger so he can pay for his June. With its casual acknowledg- There are allusions to the Cul- people. Mr. Liu doesn’t quite deeper into the Britannical weeds
girlfriend to go back to South Ko- ment of rampant profiteering and tural Revolution, the mass move- make China into a small town in than I did to fully appreciate the
rea and have her botched plastic national avarice, “Have a Nice Day” ment of intellectuals to the coun- “Have a Nice Day.” But he does ornate quality of the plotline, but
surgery corrected. Freedom in is pure provocation. The bag of on tryside and, more generally, the make it kind of small. several of the characters and per-
China is reduced by one im- money makes its way from one set cartoonishness of so much Maoist formers make their presence felt
promptu economist to “farmer’s of hands to another, no one ever propaganda. With that in mind, Mr. Anderson is a critic in New early on—most entertainingly,
market freedom,” “supermarket questioning its source or their en- Mr. Liu’s faux-naïve style—of a York. Joe Morgenstern is on Nikolaj Lie Kaas, whose wandering
freedom” and “online-shopping titlement to it. Random characters type one would see on Adult vacation. outcast, Divis, has been deemed
us l,

too crazy even for the Druids. He

makes an uneasy but often comic
al a
e
alliance with Cait, who would like
FILM REVIEW of documentary work and to ameliorate the crisis, on to rescue her father from the
in “West of the Jordan the grounds that they ulti- clutches of the brutal Romans.
ci on

Exasperated River” returns to the occu-

pied territories for the
mately undercut the coun-
try. But Mr. Gitai isn’t buy-
Kelly Reilly, who might have
been inspired by Disney’s “Brave,”
first time since his 1982 ing it, and Mr. Yemini is the lethal, flame-haired archer
With “Field Diary.” There, he in-
terviews various people af-
doesn’t seem quite con-
vinced himself.
Kara of the Regni, who must have
the best dentist in the ancient
er rs

Occupation fected by, or trying to

counter, the occupation.
“West of the Jordan
River” is as formally pre-
world and is a force to be reck-
oned with. Likewise, David Morris-
CLOCKWISE FROM TOP LEFT: STRAND RELEASING; AMAZON STUDIOS; KINO LORBER

What he finds, occasion- cise at it is politically un- sey as the distinctly unlikable Gen-
ally, is exasperation: “Our apologetic. Mr. Gitai talks eral Aulus, who has a tough job,
m e

government is insane,” to Gideon Levy, who pro- namely making war on an island
BY JOHN ANDERSON
says Yuli Novak, who at the files Palestinians for that’s already “at war with itself”:
time of filming led the or- Haaretz, but also to settler The principal tribes, led by two re-
m rp

THERE’S A WEARINESS to ganization Breaking the Si-
“West of the Jordan River,” both lence, which was founded
in the storytelling and the face of by Israeli soldiers in re-
Amos Gitai. And why not? The di- sponse to their experience
rector has spent the better part of in Hebron. “Crazy young
co Fo
women who’ve been at- gal antagonists, Pellenor (Ian Mc-
tacked by terrorists; one Diarmid) and Antedia (a fero-
comes to understand their ciously profane Zoë Wanamaker),
Amos Gitai in ‘West of the Jordan River‘ personal plight, though not harbor enough grudges against
the biblical argument for each other to provide for several

four decades chronicling the his- settlers are running the country.” real problems “go back to 1948 their presence on the West Bank. seasons’ worth of payback. And
tory of his native Israel and its Mr. Gitai does not disagree. Con- not 1967.” (That Mr. Gitai begins While “West of the Jordan River” that’s without even worrying
conflicts with the Palestinians, versely, his exchange with Deputy the scene with Ms. Hotovely sit- uses Mr. Gitai’s 1994 footage of about the Romans, who look
and he has to look back 24 years— Minister of Foreign Affairs Tzipi ting down at her desk and hand- Mr. Rabin to assert that leader- plenty worried.
to Yitzhak Rabin in 1994—to find Hotovely is argumentative and ing him a hairbrush—a moment ship can, perhaps, combine real-
something to hang his hopes on. fraught. Ms. Hotovely rejects the that could easily have been cut— ism and optimism, he also Britannia
Not that he doesn’t try. Al- basic premise of the film (“we’re seems to be a dig.) prompts a chilling response from Friday, Amazon
though perhaps best known for not occupying our own land,” she Elsewhere, the journalist Ben- a young Palestinian in Hebron.
his often exhilarating fiction films insists) and promotes the hardline Dror Yemini offers that “You can’t Asked about his fondest wish for Mr. Anderson is a critic in New
(“Kadosh,” “Kippur,” “Kedma”), Netanyahu stance that settle- always blame Israel,” and voices the future, the boy answers, with- York. Dorothy Rabinowitz is on
Mr. Gitai has a considerable body ments will continue and that the objections to organizations trying out pause, “To die a martyr.” vacation.

Weather The WSJ Daily Crossword | Edited by Mike Shenk

n-

Shown are today’s noon positions of weather systems and precipitation. Temperature bands are highs for the day.
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F A T C E L L I S T K Y L E
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 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.
A12 | Friday, January 26, 2018
They Are a Force. He Is Nothing. And Now?
“my heart is so
full”—Simone Biles,
on Twitter, Jan. 25,
12:42 a.m. ET.
“but i also just want
to cry all the time”—
Biles, on Twitter, seconds later.
If you followed the dramatic
sentencing hearing for the former
USA Gymnastics and Michigan
State doctor Larry Nassar, you
know on Wednesday, the hammer
fell. Judge Rosemarie Aquilina—
hailed as a “lioness” for the women
who stared down their abuser and
testified in her courtroom—fixed
Nassar with a glare and delivered a
sentence of up to 175 years.
“I just signed your death war-
rant,” Judge Aquilina said. To the
women who offered their accounts
in her courtroom, she said: “You
are no longer victims. You are sur-
vivors.”
Had Judge Aquilina described the
women as “champions,” I don’t
think anyone would have argued.
After all, the hammer on Nassar
started falling years ago, when a
small group of women began
bravely speaking out. They persisted
even as the institutions in power
seemed disinclined to act. The can-
dor of these women—and the work
of The Indianapolis Star, and report-
ers like the Journal’s Rebecca Davis
O’Brien and Louise Radnofsky—
would eventually push a staggering
case of sexual abuse into public.
One-hundred and fifty-six women
wound up offering testimony. Survi-
vor after survivor stood up, faced
their former doctor, and explained,
often in heartbreaking detail, what
he had done, how he had repeatedly
violated their bodies and trust.
But as they articulated why
Nassar deserved to be punished to
the fullest extent possible, they
also pointed out that he had failed,
because he was sitting there, ban-
ished, a shell in a jumpsuit, and
they were there, in the open, sur-
vivors, still rising.
“This group of women you so
heartlessly abused over such a
long period of time—are now a
force, and you are nothing,” Olym-
pic gymnast Aly Raisman testified.
“The tables have turned, Larry. We
are here, we have our voices and
we are not going anywhere.”
The final testimony came from
Rachael Denhollander, the first
gymnast to come forward and tell
what Nassar had done.
“How much is a little girl
worth?” Denhollander asked—not
just to the courtroom, but to ev-
eryone watching the proceedings.
“This is what it looks like when
the adults in authority do not re-
OLYMPICS
RUSSIA WILL SEND
169 ATHLETES
BY SARA GERMANO
no
NEARLY TWO MONTHS after the
International Olympic Committee
voted to ban Russia from the up-
coming Winter Olympics for an al-
leged state-sponsored doping
scheme, officials have issued a list
of 169 Russian athletes that will
make up a so-called neutral team
in Pyeongchang.
With a contingent about the
same size as many past Russian
teams, the roster could raise ques-
tions about what the IOC’s ban has
accomplished. The Russian Olympic
Committee on Thursday published
a roster of athletes who will com-
pete in 14 sports under the desig-
nation “Olympic Athlete from Rus-
sia” when the Games begin Feb. 9.
The team includes notable
medal contenders like figure skat-
ers Evgenia Medvedeva and Alina
Zagitova, lugers Roman Repilov
and Semen Pavlichenko and snow-
boarder Vic Wild. It is smaller
than the 214-member team Russia
fielded at its home Olympics in
Sochi. But it is nearly identical to
the 175 athletes Russia sent to
Vancouver in 2010, and 174 to Tu-
rin in 2006, according to Olympic
historian Bill Mallon. Those num-
bers do not include alternate ath-
letes or other officials.
Since the official Russia ban
was handed down in December,
Russian and IOC officials have
worked to identify which athletes
could be permitted to compete in
Pyeongchang. The process has
prompted outcry from some Rus-
sians left out of the running, and
it has generated mixed reaction
about the severity of the sanctions
for Russia for its alleged state-
sponsored doping scheme at the
Aly Raisman at Larry
Nassar’s sentencing
hearing on Jan. 19.
spond properly to disclosures of
sexual assault,” Denhollander con-
tinued. “This is what it looks like
on
when institutions create a culture
where a predator can flourish un-
afraid and unabated.”
If you haven’t seen Denhol-
us l,
lander deliver her remarks, I urge
you to. It is a staggering moment
al a
e
of courage.
“Your sister survivors and I
thank you,” Judge Aquilina said to
ci on
Denhollander. “You are the bravest
person I have ever had in my
courtroom.”
There is a tendency to view a
sentencing in a criminal trial as a
er rs
moment of triumph, a measure of
closure for the survivor of a crime.
I think it’s wiser to never dictate
how a survivor should respond.
m e
Justice is complicated emotion, of-
ten never truly “closed.” I think
that’s what Biles—who did not tes-
m rp
tify, but revealed her own abuse
by Nassar in a statement last
week—was getting at with those
tweets early Thursday. How could
anyone not be torn that way—si-
co Fo
multaneously empowered by
strength of women who brought a
monster to justice, but also griev-
ing at the damage done?
n-
Sochi Games.
Stanislav Pozdnyakov, a vice pres-
ident of the Russian Olympic Com-
mittee, said “we believe it is possi-
ble that some athletes would decide
against the participation (in the
Olympics) as a gesture of solidarity.”
The contingent of 169 athletes
and the conditions under which it
will compete in South Korea repre-
The size of the roster
could raise questions
about what the IOC’s
ban has accomplished.
sent a compromise of sorts between
the IOC, which sought to punish
“unprecedented systematic manipu-
lation” of anti-doping rules, and
Russia, where Olympic medals are
seen as an extension of the coun-
try’s status as a world superpower.
Earlier this week, Russian offi-
cials had voiced outrage that several
star athletes with no known doping
record had been barred from going
to South Korea. On Thursday, how-
ever, they displayed fortitude.
“Our group has thinned out,”
Pozdnyakov told reporters. “But
I’m convinced that all the athletes
who go to Pyeongchang will real-
ize that they aren’t competing just
for themselves but also for their
comrades who, in our view, were
unfairly deprived from participat-
ing in the Games.”
“Everything that we showed in
Sochi is the result of honest
work,” said Wild in an interview
with Russian website Meduza last
month. Wild and his wife Alena
Zavarzina won three medals in
SPORTS
GYMNASTICS | By Jason Gay
Meanwhile, the institutions that
employed Nassar—and, athletes like
Raisman have charged, prevaricated
when allegations were raised—are
starting to crumble. Over the week-
end came news that three members
of the board at USA Gymnastics re-
signed. “This step will allow us to
more effectively move forward in
implementing change within our
organization,” said the USAG’s pres-
ident, Kerry Perry. Late Wednesday,
Michigan State’s president Lou
Anna Simon, announced her inten-
tion to step down.
“As tragedies are politicized,
blame is inevitable,” Simon wrote
in a statement in which she con-
tinued to defend the university’s
handling of Nassar. “As president,
it is only natural that I am the fo-
cus of this anger.”
These departures seem like a
bare minimum start. Much more
examination is essential—in public,
by unattached parties. Michigan
State is pushing for a review by
the state’s attorney general, and
the United States Olympic Com-
mittee has announced its intention
to launch an investigation, which
hopefully will take a sharp look at
the USOC itself. The NCAA is mov-
From left to right, Snowboarder Vic Wild, figure skater Evgenia Medvedeva and luger Roman Repilov are on the list.
snowboard slalom events at the
2014 Games.
Earlier Thursday, the IOC pub-
lished its criteria for determining
which Russian athletes could be el-
igible for invitation to the Pyeo-
ngchang Games, seven weeks after
Russia’s Olympic Committee was
suspended. The review included
more than a dozen points of crite-
ria, including information gathered
from reports published by the
World Anti-Doping Agency in its
own investigation of the alleged
Russian conspiracy. In Sochi, Rus-
sian officials allegedly carried out
an elaborate scheme to infiltrate
the Olympic doping control lab,
swapping out urine samples from
Russian athletes who were on an
organized doping program.
That information includes the so-
called Duchess List, a special list of
athletes Russia had selected to re-
ceive a special drug cocktail; emails
collected in the course of WADA’s
investigation; analysis of whether
athletes had missed drug tests; and
.
ly
ing in, though the NCAA’s investi-
gatory history does not inspire
great confidence. Ditto Congress,
which could also take a look.
That can’t diminish the mission,
however. A thorough, ruthless ac-
counting of what happened—or,
more specifically, what didn’t hap-
pen—is not just necessary, but
owed. This has been obvious as in-
stitutions connected to the case
have tried to explain their response.
Much was made about Michigan
State trustee Joel Ferguson’s vigor-
ous defense of President Simon, her
legacy as a sports fundraiser and
his statement that “there’s so many
more things going on at the univer-
sity than just this Nassar thing.”
The comment was tin-eared, to say
the least—and Ferguson quickly
apologized—but still an insight into
how institutions actually think, ra-
tionalize, compartmentalize.
This Nassar thing. It look 156
women standing up in a courtroom
to trigger an appropriate rage and
response. Until a few days ago, Si-
mon spoke like an official with zero
expectation of leaving. Until a few
days ago, USA Gymnastics had not
announced its intention to close
Karolyi Ranch, its training facility
“additional confidential information
provided by WADA,” specifically in-
telligence it collected through its
own whistleblower program.
“Overall, (the criteria) is com-
prehensive but by no means ex-
haustive; I would like to stress that
we also looked at a wide range of
intelligence and other sources,”
said Valérie Fourneyron, chair-
woman of the IOC-appointed Olym-
pic Athlete from Russia Invitation
Review Panel.
The criteria published Thursday
followed roughly a week of confu-
sion and outcry in Russia, after the
IOC said last week that it had nar-
rowed the pool of potential invita-
tions to some 389 athletes, with-
out fully clarifying how that list
had been determined.
Though the Russian Olympic
Committee was and remains sus-
pended, the IOC has required its
cooperation in identifying athletes
to send to Pyeongchang as a con-
dition of possible reinstatement,
which could come as soon as the
THE WALL STREET JOURNAL.
BRENDAN MCDERMID/REUTERS
where some of Nassar’s abuses are
said to have occurred. On Wednes-
day, AT&T suspended its sponsor-
ship of U.S.A. Gymnastics. U.S.
Olympic Committee CEO Scott
Blackmun acknowledged the organi-
zation had not been “direct enough”
with athletes, and should have had a
representative in court in Michigan.
“We are sorry for the pain caused
by this terrible man, and sorry that
you weren’t afforded a safe oppor-
tunity to pursue your sports
dreams,” Blackmun wrote in an
open letter. “The Olympic family is
among those that have failed you.”
We have been here before,
sadly. As Rachael Denhollander al-
luded to, this is what happens.
This is what happens when institu-
tions choose self-preservation over
transparency, quiet settlement
over uncomfortable truth.
At the same time, it cannot be
denied that this is a culture histori-
cally conditioned to diminish—and
disbelieve—the voices of women.
That is hopefully beginning to
change. The truth is too uncomfort-
able, the voices are empowered. One
hundred and fifty-six women spoke
truth in that courtroom, and they
are coming. They are indeed a force.
L-R) LARS BARON/GETTY IMAGES; SHARIFULIN VALERY/TASS/ZUMA PRESS; JOHANN GRODER/AFP/GETTY IMAGES
closing ceremony in Korea.
Dick Pound, an IOC member and
former independent chairman of a
World Anti-Doping Agency com-
mission which investigated the
Russian doping scandal, called for
more stringent criteria to reinstate
Russia’s Olympic Committee in a
letter to IOC President Thomas
Bach earlier this month, according
to the Canadian Broadcasting Cor-
poration. A spokesman for the IOC
said the committee has given guid-
ance for Russia’s reinstatement.
Meanwhile, this week an appel-
late court for sports cases is hear-
ing the cases of Russian athletes
sanctioned by the IOC for doping
at the Sochi Olympics. Thirty-nine
athletes facing lifetime Olympic
bans and revocation of medals be-
gan pleading their cases before the
Court of Arbitration for Sport, with
results expected between Jan. 30
and Feb. 2, according to the court.
—David Gauthier-Villars and
Rachel Bachman contributed to
this article.
 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.
THE WALL STREET JOURNAL.
Operation Sabotage the Memo
Rep.
Schiff
Adam
has
many talents,
though few
compare to
his ability to
POTOMAC function as a
human barom-
WATCH
eter of Demo-
By Kimberley
cratic panic.
A. Strassel
The greater
the level of
Schiff hot, pressured air, the
more trouble the party knows
it’s in.
Mr. Schiff’s millibars have
been popping ever since the
Permanent Select Committee
on Intelligence, on which he is
ranking Democrat, last week
voted to make a classified GOP
memo about FBI election year
abuses available to every
House member. Mr. Schiff has
spit and spun and apoplecti-
cally accused his Republican
colleagues of everything short
of treason. The memo, he in-
sists, is “profoundly mislead-
ing,” not to mention “dis-
torted” and “political,” and an
attack on the Federal Bureau
of Investigation. He initially
tried to block his colleagues
from reading it. Having failed,
he’s now arguing Americans
can know the full story only if
they see the underlying classi-
fied documents.
This is highly convenient,
given the Justice Department
retains those documents and is
as eager to make them public
as a fox is to abandon the hen-
house. Intelligence Chairman
Devin Nunes had to threaten a
contempt citation simply to
get permission for his commit-
tee to gain access, and even
then investigators had to leave
Capitol Hill to view them, and
HOUSES OF Jewish tree navigates nature without ele- the extremes with dams, le- Trees also play an impor-
WORSHIP huggers have vating it above humanity. It vees and drip irrigation. tant role in collective Jewish
By Lou Weiss their own of-
ficial holiday,
and this year
it begins next Tuesday. Tu
B’Shvat, literally the 15th day
of the Jewish lunar month of
Shevat, marks the day when
all trees become one year
older—at least for the pur-
poses of their fruit being
deemed suitable for tithing
and eating. Many families and
congregations celebrate by
hosting a special meal with
fruits from trees grown in Is-
rael. Think of it as a Jewish
and Israeli Arbor Day.
Trees are a big deal in Jew-
ish liturgy. Jews refer to the
Torah as a “Tree of Life.” In
the center of the Garden of
Eden, God put the Tree of Life
and the Tree of Knowledge of
Good and Evil. The latter pro-
vided some irresistible and
fateful fruit.
The Torah describes the
various species the Israelites
encountered or planted. Aca-
cia wood was the specifica-
tion for the Ark of the Cove-
nant and the poles with
no
which it was carried. King
Solomon’s Temple in Jerusa-
lem featured cedar wood.
Various books of the Torah
mention at least 16 different
tree species—not including
the burning shrub Moses
chatted with.
As important as trees are
to Judaism, the faith still
A ‘School Shooting’ With a Pellet Gun
By Daniel Lee
I
spent five years as an
emergency medical techni-
cian and saw the result of
more than one shooting up
close. Every case horrifies in
its own way, and each has its
own tangle of causes. But
school shootings are the most
painful. The shooting this
week at Kentucky’s Marshall
County High School—which
left two innocent young people
dead and another 17 injured—
was no exception.
But what to make of the ac-
companying news coverage,
which claimed this was the 11th
school shooting of 2018? That
number seems very high.
A New York Times story,
cited as a source in several
other press accounts, opens by
stacking several incidents into
an ominous edifice of school-
yard violence. The reporters
write: “Gunfire ringing out in
American schools used to be
rare, and shocking. Now it
seems to happen all the time.”
Yet a closer look at the sta-
tistics tells a different story.
were allowed only to take
notes. Mr. Nunes has no au-
thority to declassify them. The
best he can do in his continu-
ing transparency efforts is to
summarize their contents.
Only in Schiff land is sunshine
suddenly a pollutant.
The Schiff pressure gauge is
outmatched only by the Jus-
tice Department and the FBI,
which are now mobilizing
their big guns to squelch the
truth. That included a Wednes-
day Justice Department letter
to Mr. Nunes—written by As-
sistant Attorney General Ste-
phen Boyd, designed as a
memo to the media, copied to
its allies in Washington, and
immediately leaked to the pub-
lic. And the department won-
ders why anyone doubts the
integrity of all its hardworking
professionals.
Mr. Boyd gets in his cheap
shots, for instance slamming
Mr. Nunes for moving to re-
lease a memo based on docu-
ments that Mr. Nunes hasn’t
even “seen.” He apparently
thinks Rep. Trey Gowdy—the
experienced former federal
prosecutor Mr. Nunes asked to
conduct the review of those
docs—isn’t qualified to judge
questions of national security.
He hyperventilates that it
would be “reckless” for the
committee to make its memo
public without first letting the
Justice Department review it
and “advise [the committee] of
the risk of harm to national se-
curity.” Put another way, it is
Mr. Boyd’s position that the
on
Justice Department gets to
provide oversight of Congress.
The Constitution has it the
other way around.
us l,
The bigger, swampier game
al a
e
The Jewish Arbor Day
ci on
makes the case for an envi-
ronmentalism that rightly
er rs
puts people first. It is a sane
alternative to placing “the en-
vironment” over every human
benefit. This model of stew-
m e
ardship has much to offer to-
day’s environmental policy
debates.
m rp
In the book of Genesis, do-
minion over the Earth and its
creatures is mankind’s great-
est gift and responsibility.
Adam is the first subcontrac-
co Fo
tor, tasked with naming the
various animals. After that
snake led to the discovery—
and end—of public nudity, the
first wardrobe was plant-
based fig leaves. The second
was divinely fabricated animal
skins.
Jews learn that the Earth is
made for our benefit and not
the other way around. This
precedes the numerous pro-
scriptions for how to live in
the natural world. Many Jew-
n-
ish laws call for the preven-
tion of animal cruelty. For in-
stance, like humans, livestock
must rest on the Sabbath.
They must be watered and fed
before their masters too.
When a city is under siege,
Jewish law prohibits the de-
struction of fruit-bearing
trees—unless necessary to
protect human life.
As any farmer would note,
nature can provide stability or
chaos. We attempt to smooth
Here are several of the inci-
dents, which were drawn from
the database of the gun-con-
trol group Everytown for Gun
Safety:
• A school-bus window was
broken by a pellet gun in For-
est City, Iowa.
• A gun was accidentally
discharged in a weapons class
at a Denison, Texas, commu-
nity college.
Stretching statistics
obscures the real
issues in the debate.
• A vehicle that pulled into
a parking lot at Wiley College
in Texas at 2 a.m. struck a
wall, and someone inside fired
shots apparently at random
before fleeing the scene.
• A shot from off campus
struck a building at California
State University, San Bernar-
dino at around 6 p.m.
• A 14-year-old Arizonan
committed suicide without
threatening anyone else.
OPINION
here is to rally media pressure,
and to mau-mau Mr. Nunes
into giving the department a
veto over the memo’s release.
Ask Sen. Chuck Grassley how
that goes. Mr. Grassley, chair-
man of the Judiciary Commit-
tee, recently sent a referral to
the department for a criminal
probe into dossier author
Christopher Steele. He then in
good faith asked the depart-
ment its views on an unclassi-
fied portion of that referral
that he wants to make public.
What are Adam
Schiff, the Justice
Department and the
FBI trying to hide?
The department invented a
classified reason to block pub-
lic release, and has refused to
budge for weeks.
The Boyd letter is also a
first step toward a bigger
prize: President Trump. Under
House rules, a majority of the
Intelligence Committee can
vote to declassify the memo.
Mr. Trump then has up to five
days to object to its release. If
he doesn’t object, the memo
goes public. If he does, a ma-
jority of the House would have
to vote to override him.
The shrieks of reckless harm
and national security are de-
signed to pressure Mr. Trump
to object. And wait for it: In
coming days the Justice De-
partment’s protectors will gin
up a separate, desperate claim
that Mr. Trump will somehow
be “interfering” in special
counsel Robert Mueller’s probe
Sometimes we exacerbate
problems. Declaring forests as
too holy for sensible clearing
and logging often leads to for-
est fires.
Appeals to the Creator
don’t hurt either. Some so-
phisticates made fun of Agri-
culture Secretary Sonny Per-
due, who prayed for rain
during a drought while he was
Tu B’Shvat celebrates
trees—and a tradition
of sensible concern
for the environment.
governor of Georgia. But this
wouldn’t seem strange to any-
one who has taken part in the
thrice-daily Jewish prayer ser-
vice, which includes a request
for either rain or dew in the
Holy Land.
The tree is the ultimate
symbol of this nuanced view
of environmentalism—aes-
thetic beauty, utility, deferred
gratification, continuity. Trees
planted today will benefit fu-
ture generations, as those
planted decades ago provide
us with comfort and nourish-
ment today. Nearly every ge-
nealogical and ancestry web-
site refers to roots, branches
or leaves, and the entire proj-
ect forms a family tree.
• A veteran with post-
traumatic stress disorder shot
himself in the parking lot of a
closed Michigan school. No
students were present.
Most of these are sad and
frightening in their own way,
but they were not all cut from
the same bloody cloth as the
Kentucky tragedy. Less than
half of the 11 shootings hap-
pened at an elementary, mid-
dle or high school where stu-
dents were present. But two
were drive-bys that involved
no intrusion into the school
and a third was a suicide.
In my experience, shootings
are as variable as the people
involved:
A young woman with a .22
caliber handgun, unhappy and
lonely in a rented farmhouse.
A Saturday night bar-fighter
shot with a 20-gauge shotgun
at close range. A woman try-
ing to protect her boyfriend,
who insisted she wounded
herself accidentally. A wife
shot by her husband as their
small children ran for their
lives. A teenager gunned down
after winning a fistfight.
unless he objects to the re-
lease. According to this view, it
is Mr. Trump’s obligation not
just to sit by while the media
and the Mueller team concoct
their narrative, but to block
any evidence that might under-
cut it.
The slippery shadow in all
this is Deputy Attorney Gen-
eral Rod Rosenstein. Attorney
General Jeff Sessions’ recusal
put Mr. Rosenstein in charge of
digging into the actions—right
or wrong—of the Justice De-
partment and FBI in 2016. In-
stead of taking up that chal-
lenge, he named an old and
dear friend of the FBI as spe-
cial counsel, and directed him
only to look at Mr. Trump. And
Mr. Rosenstein appears to have
signed up as an active partici-
pant in the effort to thwart any
congressional investigation of
the other side of the issue.
A department head inter-
ested in truth doesn’t flout
subpoenas. He doesn’t do a
runaround of the Intelligence
Committee and try to sucker
House Speaker Paul Ryan into
aiding a stonewall by asking
him to intervene just before a
deadline and block a contempt
citation. He doesn’t sit on the
knowledge of outrageous texts
between FBI agents and force
Congress to drag it out of him.
And he doesn’t sign off on the
leaks and character assassina-
tion in which his department
daily engages to undermine
Congress.
The good news is that
these frantic reactions are a
sign Americans are getting
closer to the truth. So long as
the truth-tellers keep moving
forward.
Write to kim@wsj.com.
memory. The Holocaust mu-
seum in Israel, Yad Vashem,
plants trees in memory of the
righteous gentiles who took
risks and sometimes gave
their lives to save Jews. Some-
times the rescuers plant trees,
sometimes the saved do.
Sometimes they do it together.
When my younger sister died,
we planted a purple beech tree
in our front yard. Its life ex-
pectancy is about 300 years,
long enough for generations of
her heirs to enjoy its beauty.
Trees, like humans, grow
through the seasons and years
until they reach a quiet
strength and majesty.
Who is not anguished at
the loss of a favorite tree?
And who doesn’t cherish a
love letter written on paper?
A walk in the woods and a fa-
vorite wooden chair? Beauti-
ful fall foliage and a roaring
winter fire? The natural world
is God’s gift for us to use and
enjoy—but also to protect and
replenish.
Rabbi Yochanan ben Zakkai,
an important scholar from the
era of the Second Temple,
summed it up best: “If you
have a sapling in your hand
and someone tells you the
Messiah has arrived, first
plant the sapling and then go
out to welcome the Messiah.”
Mr. Weiss is a Pittsburgh
carpet salesman.
Some survived, others didn’t.
Shootings at schools do hap-
pen with horrifying frequency.
Just the day before the Ken-
tucky incident, a 15-year-old
girl was shot and injured by an-
other student in Italy, Texas.
This trend demands long and
serious study. And such analy-
sis must include looking at
what is wrong with a system
that allows children access to
guns, among the other issues
that contribute to this terrible
violence—including a pattern
of self-indulgence and unman-
aged anger that crops up at all
levels of society.
This is not the place to re-
litigate the gun-control argu-
ments that most readers al-
ready know inside and out. But
it is fair to say that distorting
reality to advance a particular
approach will be counterpro-
ductive. This obscures the real
issues and antagonizes the
well-meaning people who have
come together to solve the
problem.
Mr. Lee is a writer in
Indianapolis.
Friday, January 26, 2018 | A13
BOOKSHELF | By Jonathan Taplin
The World
Is Watching
Videocracy
By Kevin Allocca
(Bloomsbury, 335 pages, $28)
Streampunks
By Robert Kyncl
(Harper Business, 255 pages, $29.99)
W
hen future cultural historians try to understand
how the American pop culture of Louis Armstrong,
Bob Dylan, Martin Scorsese and Bruce Springsteen
veered off into the trivial ephemera of cat videos, they
might start by studying the YouTube phenomenon. In doing
so, they may come across two books by YouTube employ-
ees: “Videocracy,” by the website’s “head of culture and
trends,” Kevin Allocca; and “Streampunks,” by its chief
business officer, Robert Kyncl. Both books fall into the
genre pioneered by multilevel marketer Mary Kay. Her book
“Miracles Happen” (1981) inspired a generation of house-
wives to give up the drudgery of housework for the glam-
our of selling cosmetics door to door. Similarly, Messrs. Al-
locca and Kyncl want to
convince a generation of
millennials that they, too,
can make millions of dol-
lars by unwrapping toys on
YouTube.
Mr. Kyncl breathlessly
celebrates a revolutionary
medium that has unleashed
new, “staggeringly popular
genres of content, from
.
beauty vlogging to video
ly
game commentary to unbox-
ing videos.” Mr. Allocca notes
that YouTube could well un-
leash “hours of programming from
an endless array of channels suited to the
specific tastes of everyone.” But just as it was with Mary
Kay’s vast competitive sales force, very few will get the
prized pink Cadillac.
The YouTube reality is that less than 0.1% of videos reach
one million views in their first month—the threshold
required to earn $900 in advertising revenue. Barely 30% of
the posted content is viewed 100 times a month, a number
that YouTube will not even recognize for advertising.
Although thousands of YouTube users may be earning ad
income, few will be able to quit their day job. As for You-
Tube being the center of homemade content by “the rebels
remaking media” (Mr. Kyncl’s subtitle): Of the 100 most-
watched videos in YouTube history, only four were not
professionally produced music videos.
This is not to say that no “rebels” are making money on
YouTube. The Swedish producer PewDiePie, known for his
online commentary and video-game reactions, reached 50
million subscribers at the height of his channel’s popularity.
But, as this newspaper noted last year, some of PewDiePie’s
videos contain anti-Semitic jokes or Nazi imagery. The back-
lash got PewDiePie kicked off of YouTube’s premium channel.
The strangest videos on YouTube exemplify its
clickbait culture, which encourages the kind of
content typically unseen on cable television.
Perhaps PewDiePie will have to transition to the popular
YouTube genre known as Autonomous Sensory Meridian
Response. The current star of ASMR is Maria (no last name
needed), whose most popular video, according to Mr.
Allocca, consists of 16 minutes of Maria whispering “in a
voice so soft and quiet that you can hear the light smacking
of her lips opening and closing, her tongue connecting with
the roof of her mouth, her breath passing through her
teeth. . . . Ten minutes later, Maria is rubbing a feather
across her face.” So far, Maria’s videos have been viewed
250 million times. P.T. Barnum was surely right.
PewDiePie and Maria—along with more-recent examples
such as Logan Paul and his infamous “suicide forest” video,
and teenagers recording themselves participating in the
“challenge” to swallow Tide Pods—are not outliers of
weirdness but rather the heart of YouTube’s clickbait
culture, which encourages the kind of content you would
never see on your most outlandish cable channel.
The use of YouTube for pedophile videos and Islamic
State propaganda is another big controversy plaguing You-
Tube. After advertisers began pulling their ads, YouTube
announced that it was “demonetizing” the problematic
content. No longer would pedophiles or jihadists receive ad
revenue. But the videos continued to stay up on the site.
Messrs. Allocca and Kyncl, unsurprisingly, do not weigh
in on these problems. No mention either of the role You-
Tube plays as the most important online distributor of
Russian propaganda; no disclosure of how much advertising
revenue YouTube passes on to the Moscow-funded RT tele-
vision network. Rather, these books fall under what must be
called YouTube’s “native advertising”—blatant PR content.
These disturbing issues are of course shared by other
sites, such as Facebook. Operating under the federal
government’s “safe harbor” protection—which limits their
liability for content uploaded by their users—neither You-
Tube nor Facebook must face the responsibilities and ques-
tions that traditional media organizations deal with every
day: Are we publishing something that is both true and
contributing to the public’s understanding of the world?
These new-media companies, of course, know that much of
their content doesn’t meet that standard. But their answer
up until now seems to be “that’s not our problem.”
Last week YouTube vice president Paul Muret announced
that the company was making some major changes to its
advertising platform because of advertiser complaints. It
seems Messrs. Allocca and Kyncl’s bosses are finally realiz-
ing that major changes are needed. Time will tell if any-
thing improves.
Mr. Taplin is the director emeritus of the Annenberg
Innovation Lab at the University of Southern California and
author of “Move Fast and Break Things: How Facebook,
Google and Amazon Cornered Culture and Undermined
Democracy.”
Coming in BOOKS this weekend
When Montezuma met Cortés • Alain Locke: Renaissance
Man • Lincoln and Churchill at war • The real life of the
Parthenon • A history of heart surgery • In search of the
afterlife • Sam Sacks on new fiction • & much more
 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.

A14 | Friday, January 26, 2018 THE WALL STREET JOURNAL.

OPINION
REVIEW & OUTLOOK LETTERS TO THE EDITOR

The Andrew Cuomo Tax Campaign Trump Moves to Beef Up Overstretched Navy

N
ew York Gov. Andrew Cuomo is run- they can get a better return on capital. In addi- Seth Cropsey is a perceptive naval goals. The Navy has outlined a mini-
ning for re-election this year and Pres- tion to its punishing tax burden, New York has analyst and a persuasive champion mum force requirement of 355 ships,
for a bigger fleet in an emerging pe- and the president has signed into law
ident in 2020, and apparently he among the nation’s highest energy prices and
riod of naval competition with China a bill that supports meeting this
thinks his killer app is opposi- employment costs. and Russia (“The U.S. Navy Lowers benchmark as a matter of national
tion to the GOP tax bill. Judg- The New Yorker’s idea of The $10,000 deduction cap Its Sights,” op-ed, Jan. 18). However, policy. Further, Congress not only
ing by his proposals so far, reform is to raise taxes in Newalso
could drive high earners his conclusion—that President Trump wants a larger fleet but is willing to
we’d say this is going to be York City (top mar- and the Navy have reversed course on pay for it.
harder than he thinks. again on high earners. ginal rate: 12.7%) and the up- a fleet buildup—is hasty. There is At the very least, Mr. Cropsey’s as-
The Governor last week re- per-middle class in the sub- nothing to suggest the Navy and sessment is a sobering reminder that
leased his 2018 budget along urbs out of the state. The President Trump have abandoned this there is still a great deal of work to
with proposals to “reform” New York’s taxes that average property tax bill in Westchester priority. do. In early February, the Navy’s bud-
on their face appear to conflict. On the one hand, County is $10,000 compared with $4,610 in Mr. Cropsey cites the Navy’s recent get will include requested funding for
Mr. Cuomo wants to minimize the effects of the Bucks County outside Philadelphia and $2,453 fleetwide readiness review and the new ship construction and modern-
president’s national security strategy ization programs. The budget will be
GOP bill’s $10,000 state-and-local-tax deduction in Miami-Dade.
as evidence of diminished ambitions. accompanied by the administration’s
limit on his state’s high earners. At the same Mr. Cuomo’s finance department issued a re- He is right that an aggressive buildup first 30-year Shipbuilding Plan that,
time he’s squeezing them for more dough. port last week outlining myriad ways to miti- is part of the solution to keep U.S. by law, will provide the projected in-
i i i gate the deduction cap. One idea is a new state ships ready, safe and present around ventory of Navy ships through fiscal
A roaring stock market usually bodes well for payroll tax that corporations could deduct on the globe. But Mr. Cropsey should not year 2048. This plan is the surest
Albany’s coffers, yet the state is running a $4 bil- federal taxes. Mr. Cuomo suggested several be too concerned by the absence of gauge of the administration’s com-
lion deficit this year. Revenues have increased variations, all of which would be fearsomely 350 ships in the president’s national mitment to growing the Navy, and we
by a mere 4% over the past two years, especially complex. Businesses might have to reduce em- security strategy. This strategy repre- eagerly await it.
from high earners. The top 1% of earners pay ployee wages by the amount of the new payroll sents a review of national security SEN. ROGER F. WICKER (R., MISS.)
more than 40% of New York’s income taxes, and tax, and the state would make them whole with threats and ways to secure vital U.S. REP. ROB WITTMAN (R., VA.)
the top 0.1% account for a quarter. interests, not specific force-structure Washington
a “wage credit.”
As the budget notes, “recent weakness in bo- But workers won’t like a cut in take-home
nuses highlights the risk posed by [finance and pay, which may also be prohibited by labor con-
insurance] to the State economy and revenues.” tracts. Maintaining tax progressivity—as Mr. Bill de Blasio Did a Disservice to Marion Sims
Financial institutions scaled back bonuses after Cuomo says he’d do—would also be a challenge. James Panero’s “A Brief History of tempts to repair these fistulae until
the 2008 panic, but they have also shifted some This also wouldn’t help high earners with sub- Idol-Smashers, From Moses to de Bla- he was successful, restoring these
operations out of the Northeast while expand- stantial investment income. New York taxpayers sio” (op-ed, Jan. 20) regarding van- women to a normal life.
ing in lower-tax states. making more than $1 million draw on average dalizing memorials makes a greater There was no anesthesia avail-
Between 2012 and 2016, personal income only a third of their income from wages. point about divisive racial politics able, no electricity for illumination,
from finance declined by 0.6% in New York while Yet while Mr. Cuomo tries to mitigate the fed- than meets the eye. New York Mayor no antibiotics, no intravenous flu-
growing 1.5% nationwide, 5.1% in Florida and eral tax burden on high earners, he is also taking Bill de Blasio’s commission targets ids, no blood transfusion, no blad-
the statue of J. Marion Sims, the “fa- der-drainage catheters and rudi-
6.2% in Utah, according to the Bureau of Eco- them to the cleaners. As E.J. McMahon of the Em-
ther of gynecology.” Sims is accused mentary surgical instrumentation.
nomic Analysis. In 2016 Citibank said it would pire Center for Public Policy recently noted, state of experimenting on enslaved women, He had to invent many of the in-
hire 800 more employees at its Jacksonville of- law allows New Yorkers to conform their federal performing repeated surgical proce- struments he used. Many of his de-

.
fice and bought a 5,600-employee service center itemized deductions (aside from a few exceptions dures without anesthesia and finan- signs are used today. Sims moved to

ly
in Tampa. such as for state-and-local income taxes) to state cially profiting from the results of his New York City where he founded
Mr. Cuomo has doled out billions of dollars returns. Because the GOP tax bill capped the de- experiments. the Women’s Hospital.
in subsidies to revive New York’s upstate rust duction for property taxes at $10,000 and axed J. Marion Sims practiced medicine Sadly, vandalism of the J. Marion
belt. Yet New York’s manufacturing GDP growth others, the state could reap a $700 million wind-
on and surgery in rural Alabama in the Sims Memorial is a reflection of divi-
has slipped 0.3% since 2012 while growing 0.7% fall. This is a stealthy tax grab that Mr. Cuomo mid-1840s. He initially refused to op- sive, racial and gender politics by
in the Mid-Atlantic region, 1.2% nationwide and didn’t cite in his budget. erate on the women brought to him those who are ignorant of the true
3.8% in Florida. Overall, New York has averaged He was less abashed in calling for a 17% “fair- suffering from birth trauma resulting history of Sims’s contributions to
in vesico-vaginal fistulae—defects in women’s health and to the city of
us l,

1% GDP annual growth since 2012, half the na- ness tax” on the carried-interest income of
the bladder wall causing continuous New York. American gynecological
tional average. hedge funds, private equity and venture capital. drainage of urine through the vagina. surgeons frequently go on medical
While Mr. Cuomo rails that the GOP tax bill This surcharge would raise the tax rate that New
al a
e
These women became outcasts from missions to perform Sims’s proce-
is a “dagger at the heart of New York,” its econ- York City investment managers pay on their their families and unsuitable for any dures to benefit African women who
omy and budget could benefit. Banks headquar- capital gains to 53.5%. Mr. Cuomo said the sur- occupation because of this condition. otherwise would be outcasts.
ci on

tered in New York are projecting a substantial charge would only take effect if Massachusetts, Misery and death were their fate. JOHN C. WEED JR., M.D., FACOG
boost in earnings and have announced bigger New Jersey, Connecticut and Pennsylvania do Sims’s experiments were repeated at- Overland Park, Kan.
bonuses. Though he won’t admit it, even Mr. the same. We doubt Bay State Gov. Charlie Baker
Cuomo’s budget predicts a nearly 20% increase will sign this suicide pact.
in business tax revenue over the next two years All of which shows that Mr. Cuomo doesn’t
er rs

largely due to surging corporate profits. understand how tax competition could hollow Regulation Is Largest Barrier to Solar Power
But there’s also a danger that New York may out his state fisc. He should import low-tax pol- “Keywords: Obstacles Still Cloud though it’s one of the few energy-re-
miss the party. Businesses may instead invest at icy to New York, not try to impose high-tax New Solar Power’s Future” (Technology, lated policies over which local regula-
the margin in low-tax and low-cost states where York on the rest of America.
m e

Jan. 16) identifies solar energy as the
“odds-on favorite source” for energy
in the future. However, regulation is
Trump’s Immigration Offer
m rp
tors have significant oversight.
Notwithstanding unfortunate deci-
sions to withdraw from the Paris

likely the largest barrier to solar Agreement and rescind the Clean

M
power dominating the energy land- Power Plan, the White House’s deci-
aybe an immigration compromise claim to care for the well-being of these people, scape in the near term. sion this month to impose tariffs on
isn’t hopeless in 2018 after all. That’s and this is a big concession by the President A recent report identified that U.S imported solar cells will be most im-
at least a possibility after the White given opposition from some on the right. consumers pay more than twice as pactful for the solar industry. Tariffs
co Fo

much as Australians for solar panels may help domestic manufacturers,

House floated a proposal on Those restrictionists would
to be installed on their homes, largely but they likely will cause more harm
Capitol Hill late Thursday that He dives back into get funding for the wall, which because of overly prescriptive local to solar installers and consumers.
would offer legalization and a deal-making with a Mr. Trump campaigned on. permitting requirements. More than The Solar Energy Industries Associa-
path to citizenship for some The White House proposal 100 U.S. mayors pledged to power tion argues that tariffs could nearly
800,000 so-called Dreamers in constructive proposal. also includes limits on the their cities with 100% clean energy, double the price of solar modules,
return for funding for Presi- ability of citizens to bring but few cities identified the specific making U.S. customers pay far more
dent Trump’s wall at the Mex- adult siblings or parents into steps they’d take to make that pledge for energy from sunshine than the
ico-U.S. border and other changes to U.S. immi- the U.S., as well as an end to the lottery program a reality. None vowed to cut red tape rest of the world.
gration law. that awards 50,000 visas a year to countries to make installing solar faster and BRIAN SPAK
The details weren’t fully known by our dead- that typically don’t have many immigrants. cheaper for their residents, even Newcastle, NSW, Australia
line Thursday, but the outline has something for These concessions would substantially limit
both sides. Democrats would get legal protec- the number of legal immigrants, and thus a
New York Is Trying Ensure a Basic Education
n-

tion for the Dreamers, the young adults brought source of talent, but we recognize that compro-
here illegally as children. They could also be- mise is needed to break the veto that both sides Avi Schick’s argument against households in New York City are
come U.S. citizens over time, which makes sense have held over immigration policy for so many state oversight of religious schools poor, and another 16% are near poor.
given that this is the only country they have years. Credit Mr. Trump with recharging the is fundamentally flawed (“New In heavily Hasidic Williamsburg,
no

known for nearly all of their lives. Democrats chances for a deal after much recent acrimony. York’s Bid to Control Religious
Schools,” Houses of Worship, Jan.
19). The Supreme Court decisions he
The Mnuchin Dollar and the Draghi Euro cites don’t support the view that the
state has no interest in the quality
Brooklyn, the percentage of food-
stamp use is 51.8. Hasidic families
are also heavy users of cash assis-
tance and housing vouchers. Accord-
ing to the 2010 census, the upstate

A
s if on cue, Mario Draghi on Thursday ence that have been agreed.” He meant an IMF of education offered in religious New York Satmar village of Kiryas
schools. Both Pierce v. Society of Sis- Joel is the poorest place in the U.S.
demonstrated one consequence of the communique last year in which governments in- ters and Wisconsin v. Yoder rest on Mr. Schick professes concern for
weak-dollar philosophy espoused by cluding Washington promised to eschew com- the explicit assumption that children the taxpayers, who may have to
Steven Mnuchin on Wednes- petitive devaluation. are receiving an adequate secular write some “very large checks.” But
day. Mr. Draghi indicated Both sides risk losing Now Mr. Draghi is in a education. these schools already receive mil-
that the European Central the competitive- pickle. Having started down The Hasidic yeshivas at issue here lions of dollars annually in federal,
Bank he leads may delay nor- the QE road, he finds it as dif- offer, at most, 90 minutes of Eng- state and city aid through a variety
malizing monetary policy devaluation game. ficult as other central bankers lish-language, secular education four of programs. A laissez-faire ap-
thanks to the weak greenback to return to normal policy days a week, between third and proach wastes that money by not re-
favored by the U.S. Treasury without spooking markets. So eighth grade. Some of them offer no quiring that schools offer a sound
Secretary. he keeps delaying announcing a formal end to secular education at all. The lan- basic education. Taxpayers pay
guage of instruction is Yiddish. again when these yeshiva boys grow
“The recent volatility in exchange rates QE despite strong eurozone economic
Thus, children emerge from these up and are unable to support their
represents a source of uncertainty which re- growth—2.6% year-on-year as of the third quar- yeshivas illiterate in English, totally families.
quires monitoring with regard to its possible ter last year—and healthy business confidence. ignorant of basic facts of history and PROF. DENA S. DAVIS, J.D., PH.D.
implications for the outlook for price stabil- That should be a sign it’s time to wean the euro- geography, with only the most basic Lehigh University
ity,” Mr. Draghi told the press after the ECB’s zone off QE, but inflation is falling, to 1.4% year- arithmetic skills and unable to pass Bethlehem, Pa.
January meeting. on-year in December from 1.5% in November, the GED.
As a result, the ECB will continue buying in part thanks to the stronger euro. Given this lack of education, it is
bonds worth €30 billion ($38 billion) a month Some of us saw this coming, and Mr. Draghi not surprising that 43% of Hasidic Pepper ...
through September “or beyond if necessary,” is largely responsible for his own fate what- And Salt
and interest rates won’t rise “for an extended ever Messrs. Trump and Mnuchin say about CORRECTION THE WALL STREET JOURNAL
period of time.” That’s central-bank-speak for the dollar. Mr. Draghi has always said that the
Mr. Draghi getting nervous about earlier plans eurozone needs policy reforms from elected
Avi Schick, a lawyer, represents
to dial back his unconventional monetary poli- leaders more than it needs monetary pyro- Pearls, a group with an interest in
cies because he’s afraid of triggering an exces- technics. Sure enough, economic growth has New York state’s proposed regula-
sive rise in the euro. finally picked up as reviving optimism in the tion of private schools. Because of
Mr. Draghi is right to worry, up to a point. U.S. and the election of a reformer to France’s an editing error, this was not dis-
Over the past year the euro has appreciated presidency stirred animal spirits. closed in the biographical note on
against the dollar to above $1.25 from $1.07 Still, Mr. Mnuchin—and his boss—could his Jan. 19 Houses of Worship col-
when Donald Trump took office. That’s well help Mr. Draghi now by aiming for stability in umn, “New York’s Bid to Control Re-
short of the nearly $1.40 in 2014 before Mr. the world’s most important exchange rate ligious Schools.”
Draghi began quantitative-easing bond pur- rather than pursuing a weak-dollar gambit.
chases, but it’s still a blow to the ECB since Mercantilists in the White House might think Letters intended for publication should
competitive devaluation has been one of its eurozone monetary policy isn’t their problem. be addressed to: The Editor, 1211 Avenue
of the Americas, New York, NY 10036,
main, though unacknowledged, goals. But it will be if their greenback gimmicks goad or emailed to wsj.ltrs@wsj.com. Please
Without mentioning the Treasury Secretary Mr. Draghi into diverging too far from the Fed- include your city and state. All letters
by name, Mr. Draghi also complained about “use eral Reserve’s modest attempts at normaliza- are subject to editing, and unpublished
of language in discussing exchange-rate devel- tion, with unpredictable consequences for ex- letters can be neither acknowledged nor “Give it to me straight, doc.
returned.
opments that doesn’t reflect the terms of refer- change rates and the world economy. What did you infect me with?”
 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.
THE WALL STREET JOURNAL.
How Blockchain Can End Poverty
By Phil Gramm
And Hernando de Soto
F
or a long time, Western
economists failed to ap-
preciate the relationship
between private property
rights and economic de-
velopment. Karl Marx saw private
property as the source of wealth and
called for its elimination to promote
equality. A century and a half later,
we know that a country without a
formal system for registering prop-
erty rights limits its own economic
development and prevents its citi-
zens from realizing their full poten-
tial. It’s a simple yet startling fact:
The road to economic development
runs through the county clerk’s of-
fice at the local courthouse.
Two-thirds of the world’s
population lacks access
to a formal system
of property rights.
The great economic divide in the
world today is between the 2.5 bil-
lion people who can register prop-
erty rights and the five billion who
are impoverished, in part because
they can’t. Consider what happens
without a formal system of prop-
erty rights: Values are reduced for
privately owned assets; wages are
devalued for workers using these
assets; owners are denied the abil-
ity to use their assets as collateral
to obtain credit or as a credential
to claim public services; and society
loses the benefits that accrue when
assets are employed for their high-
est and best purpose. The Institute
for Liberty and Democracy, founded
Will Trump Tell the Truth About the Armenian Genocide?
By Robert M. Morgenthau
A
s Hitler launched his invasion
of Poland in 1939, he in-
structed his commanders “to
send to death mercilessly and with-
out compassion, men, women and
children of Polish derivation and
language.” He assured his staff the
world would raise little objection:
“Who, after all, speaks today of the
annihilation of the Armenians?”
That was a reference to the sys-
tematic destruction of the Armenian
population by the Ottoman Turks
beginning in 1915. World powers
had offered little resistance to the
slaughter as it occurred. Later, Tur-
key’s insistent denials made it the
“forgotten genocide.”
Turkey, ostensibly an American
ally, still refuses to confront its his-
tory. The U.S. government also has
failed to give the annihilation of the
Armenians its due. American ad-
ministrations have bowed to Turk-
ish pressure and failed to affirm
consistently a simple fact: The
slaughter of the Armenians was not
a mere misfortune of history but a
systematic genocide.
Such reticence wasn’t necessar-
ily surprising, given diplomats’
cautious and equivocating nature.
no
By Jason Furman
E
veryone who debated last year’s
tax law can agree that it won’t
be the last word. The legislation
addressed almost none of the “tax ex-
tenders,” temporary tax breaks that
Congress typically reauthorizes every
year. Some of the law’s key provisions
expire after 2022 or 2025.
More important, the tax cuts put
the country on an unsustainable fis-
cal trajectory, with next year’s deficit
set to hit 5% of gross domestic prod-
uct, a record outside of major wars
and recessions or their aftermath.
Finally, anything widely known as
the “Trump tax cuts” is politically
unstable given that Democrats will
eventually take back power.
PUBLISHED SINCE 1889 BY DOW JONES & COMPANY
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by Hernando de Soto in 1979, esti-
mates that two-thirds of the world’s
population lacks access to a formal
system of property rights, resulting
in undeveloped resources and as-
sets worth an estimated $170 tril-
lion, or 63% of the value of the as-
sets of the U.S.
Increasingly sophisticated data
from surveys, satellite photos and
the Global Positioning System have
resulted in organized knowledge
about the location of every visible
asset on earth. Yet outside the de-
veloped world and some advanced
regions of developing countries,
there are no accessible records de-
tailing who owns those assets.
Forty years ago one of us—Her-
nando de Soto—discovered that
even in the most primitive societies
records exist on who owns what.
Based on this discovery, ILD under-
took an organized effort in Peru to
begin to assimilate and formalize
these records to establish a registry
of property ownership.
In 1980 the communist-terrorist
insurgency known as the Shining
Path won support among the poor
indigenous people of Peru by en-
forcing primitive property rights at
the point of a gun. We first collabo-
rated in 1990 when Peru sought
American assistance to replace the
gun with the rule of law by offi-
cially recognizing that the indige-
nous Peruvians’ primitive property
records were legal proof of owner-
ship. At that point the Shining Path
controlled 60% of Peru’s territory,
and the RAND Corp. was predicting
that Lima would fall as early as
1992.
One of us—Phil Gramm, then a
U.S. senator—helped obtain funding
for the ILD’s property-registration
on
effort, and ultimately for the forma-
tion of an alliance between Peru’s
us l,
al a
e
But President Trump, in recogniz-
ing Jerusalem as the capital of Is-
ci on
rael, seems to be signaling a new
age. In 1995, Congress enacted leg-
islation directing the State Depart-
ment to recognize Jerusalem as the
capital of Israel and move the U.S.
er rs
Embassy there. Candidates Bill Clin-
ton and George W. Bush promised
to move the embassy, and Barack
Obama said in 2008 that “Jerusa-
m e
lem will be the capital of Israel.”
Once elected president, all three re-
neged on their pledges. Now, at
m rp
last, America’s Jerusalem policy is
consistent with its principles and
with historical fact.
That makes me optimistic that
America may similarly acknowledge
co Fo
the historical truth of the Armenian
genocide. The facts are compelling.
For millennia, Armenians lived in
the shadow of Mount Ararat, in
what is now eastern Turkey. For
much of its history, this Christian
minority lived in peace with its
Muslim neighbors. But as the Otto-
man Empire began to disintegrate
in the late 19th and early 20th cen-
turies, the Armenians became tar-
gets of oppression. As World War I
loomed, the Turks saw the oppor-
tunity to settle their “Armenian
n-
question.”
‘Repeal and Replace’ the Trump Tax Cuts
The question is how Democrats
should proceed once they do. After
the George W. Bush tax cuts, they
focused on repealing the provisions
that benefited only high-income
households. That approach will not
work this time. Although the
Trump tax cuts are tilted toward
the rich, few provisions benefit
them alone.
Another problem is that repealing
the law’s parts in isolation could be
counterproductive. Democrats are
rightfully upset about the new
$10,000 cap on the deduction for
state and local taxes, but eliminating
it would cost more than $600 billion
over 10 years, with half that going to
households earning more than $1
million annually.
Robert Thomson
Chief Executive Officer, News Corp
William Lewis
Chief Executive Officer and Publisher
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Ingrid Verschuren, Deputy Head
OPINION
army and the farmers and miners
who were eager to fight for their
newly won property rights. By pro-
viding these indigenous people with
formal proof of property ownership,
property-rights registration reached
through their wallets and touched
their hearts and minds. With a con-
viction that comes only from de-
fending your own property, indige-
nous Peruvians overwhelmed the
communist terrorists.
Shining Path leaders surrendered,
opting for the safety of prison over
the wrath of Peru’s indigenous poor.
The terrorists’ commander, Abimael
Guzmán, specifically blamed the
property rights “conceived and im-
plemented by Hernando de Soto”
and his American supporters for
Shining Path’s defeat. The U.S. has
never won a war against commu-
nism or terrorism with so little
blood and treasure, but of course we
have seldom had an ally like private
property rights on our side.
First they arrested and executed
community leaders and intellectu-
als. Then they drove the remaining
civilians out of their homes in long
“death marches” to the Syrian des-
ert. As many as 1.5 million Arme-
nians were murdered.
For me, this chronicle is not con-
fined to history books. My paternal
grandfather, Henry Morgenthau, was
President Wilson’s ambassador to
He recognized the reality
that Jerusalem is the
capital of Israel. Such
daring is needed again.
the Ottoman Empire as the horror
began to unfold. He quickly under-
stood that this was slaughter on a
scale the modern world had never
seen. He protested to Turkish lead-
ers, who replied that the Armenians
were not American citizens and thus
none of the ambassador’s concern.
Besides, they said, Ambassador
Morgenthau was Jewish, and the Ar-
menians were Christian.
The Turks even threatened to
pressure Washington to recall him.
Democrats should instead aim for
something more radical: “repeal and
replace” of the Trump tax law—or,
Republicans could join the process
and call it comprehensive tax reform.
It should have four goals: stability,
efficiency, simplicity and help for
American families.
Stability doesn’t mean simply that
the tax code shouldn’t be changed on
a whim. It also means Congress
should raise sufficient revenue to fi-
nance the spending it has committed
to. Under the current trajectory the
deficit is set to hit $1 trillion starting
in 2019. If the Trump tax cuts are ex-
tended or made permanent, the situ-
ation will get even worse. The gov-
ernment will raise about 17% of GDP
in taxes over the next decade. A sus-
tainable trajectory will require some-
thing closer to the 21% of GDP pro-
posed in 2010 by the Simpson-
Bowles Commission. Even then, the
U.S. would still be in the bottom
quarter of the 35 countries in the Or-
ganization for Economic Cooperation
and Development.
On the corporate side, raising rev-
enues can be done while increasing
the tax system’s efficiency. What
would that look like? A higher corpo-
rate tax rate, say 25% or 28%, com-
bined with permanent expensing, no
interest deductibility, stronger pro-
tections against shifting income
abroad, and more favorable treatment
of research and development.
Repealing the Trump tax bill’s
complicated new loophole for pass-
throughs would raise revenue while
simplifying and reducing distortions.
So would ending the so-called Ging-
rich-Edwards loophole, which allows
some pass-through owners to avoid
paying their full payroll taxes.
CHAD CROWE
Bringing greater legal certainty to
property ownership can produce
huge economic gains. In 1990 the
state-owned Peruvian telecommuni-
cations company CPT was valued on
the Lima Stock Exchange at $53 mil-
lion. The government wanted to sell
CPT to foreign investors but
couldn’t, because Peruvian titles to
the company’s assets did not meet
global standards. CPT initiated a
program using ILD guidelines to re-
search title records and formally es-
tablish its property rights. Within
three years CPT was sold on the
world market for $2 billion—roughly
38 times its previous value.
In 2010, Mohamed Bouazizi, a
street vendor, triggered the Arab
.
Spring by setting himself on fire in
ly
the Tunisian city of Sidi Bouzid. A
comprehensive 2013 ILD study
found that he and others who self-
immolated were protesting not reli-
gious issues but the absence of
property rights and the rule of law.
My grandfather’s reply was elo-
quent: “I could think of no greater
honor than to be recalled because I,
a Jew, have done everything in my
power to save the lives of hundreds
of thousands of Christians.”
The Turks refused to relent, and
my grandfather turned to his own
government. He sent Washington a
diplomatic cable reading: “A cam-
paign of race extermination is in
progress.” The State Department,
then preoccupied with World War I,
responded with indifference. Ulti-
mately my grandfather decided to
appeal to the world’s conscience
through a series of speeches.
Eventually a massive aid cam-
paign helped resettle the scattered
survivors. But the genocide had ex-
acted an unfathomable toll on the
Armenian people—and on my grand-
father’s spirits. He returned to the
U.S. determined to spend his days
helping the survivors, sometimes
appearing at Ellis Island as “Uncle
Henry” to sponsor refugees who had
no one to meet them. And he did
something else. He taught his chil-
dren and his grandchildren the his-
tory he had witnessed. The lesson
he drew was clear: When principle
succumbs to expediency, the inevita-
ble result is tragedy.
Raising individual capital-gains
taxes a bit would help recoup some
of the cost of the corporate tax cuts.
One of the most efficient ways to do
this would be to reduce the incen-
tives to lock in asset allocations.
That would include repealing “step-
up in basis” at death, meaning the
owner’s estate would have to pay
capital-gains taxes that today are not
levied.
With the deficit set to hit
$1 trillion, the law isn’t
stable. Reformers next
time should aim higher.
Broadening the tax base would be
beneficial, too. One way would be to
reduce the tax break for very gener-
ous health insurance, either by
building on the Affordable Care
Act’s “Cadillac tax” or replacing it.
Creating a value-added tax is an-
other option. Many other countries
have used VATs to cut corporate tax
rates without blowing up their bud-
get deficits. Finally, a carbon tax
could be an efficient revenue raiser,
especially if combined with a reduc-
tion in carbon-related environmental
regulations.
On simplification, the Trump tax
law was mixed. An estimated 25 mil-
lion households will stop itemizing
and take the standard deduction, a
modest step in the right direction.
But many millions of small busi-
nesses and contractors will struggle
with the complicated new rules de-
scribing the varying tax rates on dif-
ferently labeled business income.
Friday, January 26, 2018 | A15
Based on Peru’s success, and a
growing awareness of the impor-
tance of property rights, sporadic
efforts are now under way all over
the developing world to collect re-
cords on property ownership. But
the difficulty of gathering and
maintaining those records in an ac-
cessible and easily updatable form
has proved an obstacle.
Fortunately there is a new tech-
nology that could make a global
property-rights registration system
feasible. Patrick Byrne, an e-com-
merce pioneer and the CEO of Over-
stock.com, has committed a profes-
sional staff and significant resources
to modernizing the collection and
maintenance of property-rights re-
cords on a global scale. Blockchain is
an especially promising technology
because of its record-keeping capac-
ity, its ability to provide access to
millions of users, and the fact that it
can be constantly updated as prop-
erty ownership changes hands.
If Blockchain technology can em-
power public and private efforts to
register property rights on a single
computer platform, we can share
the blessings of private-property
registration with the whole world.
Instead of destroying private prop-
erty to promote a Marxist equality
in poverty, perhaps we can bring
property rights to all mankind.
Where property rights are ensured,
so are the prosperity, freedom and
ownership of wealth that brings real
stability and peace.
Mr. Gramm, a former chairman
of the Senate Banking Committee, is
a visiting scholar at the American
Enterprise Institute. Mr. de Soto is
author of “The Mystery of Capital”
and a former CEO of UEC, Switzer-
land’s largest consulting engineering
firm.
That prophecy was realized
when Hitler invaded Poland, em-
boldened by the world’s amnesia
about the Armenians. It is high
time for America to emerge from
that amnesia.
Every April, the president issues
a proclamation recognizing the
atrocity that was inflicted on the Ar-
menian people. But bowing to Turk-
ish pressure, that proclamation has
never contained the word “geno-
cide.” That must change.
I do not underestimate the con-
cerns of those who say the wrath of
Turkey may work against U.S. inter-
ests—as I do not dismiss those who
say moving the embassy to Jerusa-
lem may complicate peace negotia-
tions. But a just and lasting world
order cannot be built on falsehoods
and equivocations. Let President
Trump demonstrate that commit-
ment once more by declaring the
truth of the Armenian genocide.
This would send clear message to
the thugs in power around the
world: Your criminal acts will not
go unnoticed.
Mr. Morgenthau, a former Man-
hattan district attorney (1975-2009),
is of counsel at Wachtell, Lipton,
Rosen & Katz.
The next tax bill should set a
much more ambitious goal: to end
tax filing entirely. Countries ranging
from the United Kingdom to Kenya
have already done this by giving
people the option to have the gov-
ernment do their taxes. That means
there’s no need to file a return and,
ideally, exact withholding from the
worker’s paycheck. With this ap-
proach April 15 would become just
another day.
The next bill should also make the
tax code more pro-work, pro-family
and pro-middle-class. Expanding the
earned-income tax credit for workers
without qualifying children is a bi-
partisan idea that was inexplicably
omitted from the Trump law. Taxing
spouses separately rather than
jointly would both encourage work
and make it easier to end mandatory
tax filing. Replacing the child tax
credit’s complicated rules with a flat
$2,000 allowance per child, fully re-
fundable regardless of income, would
help millions of families while truly
simplifying taxes.
Last year’s tax law, which passed
the Senate with a single vote to
spare, shows how difficult tax re-
form is even when it loses revenue.
The political hurdles facing a tax bill
that raises revenue will be even
higher. The key is not merely to co-
alesce around repealing or extend-
ing individual parts of the Trump
tax law but to set higher-level goals
for what could be the first funda-
mental tax reform and simplification
since 1986.
Mr. Furman, a professor of practice
at the Harvard Kennedy School, was
chairman of the White House Council
of Economic Advisers, 2013-17.
 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.
A16 | Friday, January 26, 2018
Quebec Law on Facial Veils Fuels Debate
Canadian province’s
partial ban on niqabs
raises legal and
political challenges
BY VIPAL MONGA
MONTREAL—As a Muslim
teenager in her native Tunisia,
Nadia El-Mabrouk never once
saw a woman wearing a full-
face veil. After moving to Can-
ada, she was shocked to see
her first one on the streets of
Montreal.
Now the University of Mon-
treal computer-science profes-
sor is one of many Quebec resi-
dents backing a provincial
government ban on the Islamic
face covering, called a niqab.
“It’s a walking prison,” she said.
The measure, part of a law
passed by the National Assem-
bly of Quebec in October, bans
women from wearing face cov-
erings when using public ser-
vices such as buses or libraries.
Provincial lawmakers say the
law is meant to ensure public
security and is among the first
of its kind in North America.
A Quebec superior court
suspended the ban in Decem-
ber after rights groups asked
for a stay until the court de-
cides whether the law is con-
stitutional. Pending a judg-
ment on that question, the law
will likely go back into force
later this year once the gov-
ernment meets the court’s de-
mand to publish guidelines on
how it will be applied.
The law, known as Bill 62, is
creating a thorny challenge for
the Liberal government of
Prime Minister Justin Trudeau,
which will decide by the end of
this month whether or not to
join the lawsuit challenging
the niqab ban or take other of-
ficial measures to oppose it.
Mr. Trudeau, who has
championed both Canadian
immigration and women’s
rights, has said he didn’t agree
with the law, but when it
passed, he expressed a reluc-
tance—common among Cana-
Brazil’s ‘Lula’ to Run Despite Conviction
BY PAUL KIERNAN
AND PAULO TREVISANI
RIO DE JANEIRO—Brazil’s
Workers’ Party on Thursday
proclaimed former President
Luiz Inácio Lula da Silva its
candidate in the October pres-
idential election despite a
court ruling that confirmed
his conviction for corruption
and put a significant legal hur-
dle on his path to the presi-
dency.
Top party leaders, meeting
in São Paulo, called for dem-
onstrations and civil disobedi-
ence before hundreds of red-
clad supporters under a
banner reading “in defense of
democracy and of Lula,” as Mr.
da Silva is universally known.
“We will keep on fighting,”
no
said Sen. Gleisi Hoffmann, the
Workers’ Party president,
flanked by Mr. da Silva and his
successor, Dilma Rousseff.
“Lula is our candidate for the
2018 election.”
While Mr. da Silva’s lawyers
are expected to challenge
Wednesday’s appeals-court
ruling, many legal experts be-
lieve the verdict will ulti-
mately prevent the former
president, who currently
stands at the top of pre-elec-
tion polls, from running. Un-
der Brazil’s Clean Record elec-
tion law, politicians convicted
of corruption stand to be
barred from public office for
eight years once the verdict is
A man carried a patient away from Sejong Hospital in Miryang,
South Korea, where a deadly blaze broke out Friday morning.
Marie-Michelle Lacoste wearing a niqab in a Montreal grocery store, above. Nadia El-Mabrouk, below, supports the measure banning it.
dian prime ministers—to wade
into Quebec’s provincial poli-
tics. “It isn’t up to the federal
government to challenge this,”
he said.
The law has engendered a
fierce debate that reflects
broader tensions over immi-
gration and cultural change in
Canada and mirrors battles
over the full-face veils in
France, Germany and other
European countries. Like much
of Western Europe, Quebec
has absorbed an influx of im-
us l,
migrants from predominantly
Muslim countries in recent
al a
e
years, though only a small
fraction of Quebec’s popula-
tion uses the niqab.
ci on
The veil represents a “polit-
ical and religious ideology”
that is degrading to women,
said André Lamoureux, a polit-
ical-science professor at the
er rs
University of Quebec in Mon-
m e
m rp
co Fo
n-
Former President Luiz Inácio Lula da Silva, right, embracing his successor, Dilma Rouseff, on Thursday.
upheld by an appeals court.
The party’s leaders blame a
conspiracy for Mr. da Silva’s
predicament and say his cam-
paign aims to give voice to Bra-
zil’s downtrodden. That rheto-
ric has struck a chord with
leftists around Latin America,
where Mr. da Silva and the
Workers’ Party, or PT, were
long celebrated for combining
political pragmatism with am-
bitious social goals. When Mr.
da Silva left office on Jan. 1,
2011, after two four-year terms,
the Brazilian economy was
growing at its fastest clip in
WORLD NEWS
on
treal and a prominent secular
activist.
Opponents of Bill 62 say it
amounts to a violation of free-
dom of religion and equal
rights. “Feminism is about giv-
decades on the back of boom-
ing commodity prices, and his
approval rating had hit 87%.
In an increasingly polarized
Brazil, however, there was lit-
tle evidence that the PT’s defi-
ance resonated outside the la-
bor unions and rural peasant
organizations that form its
traditional constituencies. The
benchmark Bovespa stock in-
dex rose 3.7% to a record
83,680 points after Wednes-
day’s ruling, and the currency
strengthened against the dol-
lar.
Most Brazilians—even one-
WORLD WATCH
SOUTH KOREA
Hospital Fire Leaves
More Than 30 Dead
A fire swept through a hospi-
tal for the elderly in southeast-
ern South Korea on Friday, killing
more than 30 people and injuring
YONHAP/AGENCE FRANCE-PRESSE/GETTY IMAGES
dozens in one of the country’s
deadliest fires in recent years.
The fire at Sejong Hospital in
the city of Miryang killed 31 peo-
ple and injured 81, 14 of them in
critical condition, the state-run
National Fire Agency said.
Agency officials said the death
toll could increase.
Local Miryang fire officials
said they put out the blaze at
10:26 a.m., nearly three hours af-
ter it started.
—Associated Press
Migration Mix
Many newcomers to Quebec come
from Muslim-majority countries.
Percentage of immigrants to
Quebec by country of origin, 2016
Syria
France
China
Algeria 5.0%
Iran 4.9%
Haiti 4.5%
Philippines 3.8%
Morocco 3.4%
Source: Institut de la statistique du Québec
THE WALL STREET JOURNAL.
ing the choice to the women,
not dictating to them what are
acceptable choices,” said Cath-
erine McKenzie, a lawyer rep-
resenting plaintiffs in the con-
tinuing court case against the
time Workers’ Party stal-
warts—shrugged off the PT’s
calls to action, underscoring
its declining influence in the
wake of the sprawling corrup-
tion scandal and historic eco-
nomic recession that followed
its 13 years in power.
That legacy has bred re-
sentment among some erst-
while supporters of the party,
which came to power with Mr.
da Silva in 2003 after decades
of grass-roots campaigning
against Brazil’s 1964-85 mili-
tary dictatorship.
“I used to believe in the PT’s
FRANCE
Hundreds Evacuated
As Seine Rises
Nearly 400 people were evac-
uated from their homes in the
Paris region on Thursday, as riv-
ers across France kept swelling,
and heavy rainfall continued to
batter many regions. In addition
to Paris, where the Seine is ex-
pected to keep rising, other re-
gions in the north and east are
threatened, and seven depart-
ments in central France were
placed on alert for snow and ice.
On Saturday the Seine is ex-
pected to reach as high as in
June 2016, when authorities were
forced to close several monu-
ments, including the Louvre.
—Associated Press
* **** THE WALL STREET JOURNAL.
to the niqab in 2011 over her
husband’s objections. It de-
flected attention from her face
and stopped men from sexually
harassing her, she said.
“That’s not the kind of at-
tention I wanted in my life,”
she said, speaking through her
veil at a fast-food restaurant
in a Montreal working-class
neighborhood.
But now Ms. Naili says
wearing the niqab on the
streets of Montreal has made
her a target for another sort
of harassment. She says
strangers once called her
“Osama’s widow” while she
waited for a bus, in an appar-
GUILLAUME SIMONEAU FOR THE WALL STREET JOURNAL (2)
ent reference to al Qaeda
founder Osama bin Laden. Last
year, a teenager tackled her on
the bus, Ms. Naili says, adding
she now rarely leaves the
house for fear of abuse.
The backlash against veils
is the latest sign of simmering
social friction here. Anti-immi-
gration protesters have taken
to the streets in Quebec and
neighboring Ontario in recent
months, and last year a shoot-
ing at Quebec mosque left six
dead and eight injured.
According to the most re-
cent Canadian census, pub-
Quebec government. lished in 2011, 3.2% of Que-
Beyond that ideological dis- bec’s population is Muslim,
pute, there is also confusion more than twice the share of
over how the law would be en- 2001. That percentage has
forced. Bus drivers, for in- likely increased further more
stance, question whether they recently as the province has
.
would have to refuse service to been absorbing an influx of
ly
10.4% women who wear niqabs. Un- immigrants from predomi-
8.7% der the court order, the provin- nantly Muslim countries under
8.6% cial government must publish the Trudeau government’s
guidelines on how public-sec- broad immigration program.
tor agents can apply the rule Syrians made up 10.4% of all
by June 30. A spokeswoman immigrants to the province in
for the provincial justice de- 2016, the highest share of any
partment said it would do so nationality, according to the
“sooner rather than later.” province’s statistical agency.
Marie-Michelle Lacoste, a A recent survey by polling
Montreal resident who prefers firm Ipsos showed 76% of Que-
to use her Arabic name, Warda becers supported the provin-
Naili, converted to Islam in cial law, and 68% of all Cana-
2003 and believes she should dians wanted a similar rule
be allowed to wear the veil if passed in their own province.
she chooses. The 34-year-old The Quebec government
said that after years of wearing has vowed the law will eventu-
a hijab, a head covering that ally be enforced, despite the
left her face open, she switched court’s stay.
Canada
Tries to
political project. I believed they
would give the poor power and
dignity,” said Wilton Garcia, a
49-year-old communications
professor at a college in São
Bridge Gap
Paulo. “I feel like they deceived
us with all of their scandals.
We saw that they are just as
On Nafta
corrupt as the others.” BY PAUL VIEIRA
NELSON ALMEIDA/AGENCE FRANCE-PRESSE/GETTY IMAGES
With Mr. da Silva likely AND WILLIAM MAULDIN
sidelined, political analysts
say the PT faces an uphill bat- MONTREAL—Canada sought
tle to regain its former clout. to break a logjam in overhaul-
Political parties across the ing the North American Free
ideological spectrum, includ- Trade Agreement by introduc-
ing current President Michel ing a proposal for more North
Temer’s conservative Brazilian American content in automo-
Democratic Movement Party, biles, according to people fol-
have suffered from corruption lowing the talks.
scandals in recent years. But Ottawa’s informal proposal
the PT’s reputation has been is in response to a U.S. de-
further damaged by the mand for significant increases
2015-16 recession, which undid in the share of a car and its
some of its social achieve- parts that must be made in
ments as unemployment sky- one of the three countries
rocketed. The party has also party to the deal—which also
failed to groom young leaders includes Mexico—to be eligible
to take up its banner should for duty-free trade.
Mr. da Silva be barred, which The U.S. has said it wants to
has been a possibility at least increase North American car
since he was sentenced in July content from the current 62.5%
to 9½ years in prison for cor- to 85%. The purpose is to pre-
ruption and money laundering. vent Asian or other overseas
The appeals court this week content from expanding in the
lengthened that sentence to North American supply chain.
just over 12 years. Thursday’s proposal is the
“It’s a devastating situation latest signal Canada and Mex-
for a party that put all its ico are aiming to show flexibil-
hopes on a single candidate,” ity and engage with U.S. negoti-
said José Matias-Pereira, a po- ators at the bargaining table.
litical scientist at University of President Donald Trump has
Brasília. “The party has lost threatened to withdraw from
its compass.” Nafta if the three countries
don’t agree on an overhaul.
Responding to U.S. demands
for more North American car
content, Canada proposed
broadening the definition of
VIETNAM what should be counted to in-
clude software, other techno-
U.S. Carrier Is Slated logical components now com-
To Visit Da Nang mon in cars, and raw materials
like steel and aluminum. U.S.
A U.S. Navy aircraft carrier is officials welcomed the pro-
expected to make a port call to posal and indicated they would
Vietnam in March, visiting U.S. look at it closely, according to
Defense Secretary Jim Mattis two people briefed on the talks.
said Thursday in Vietnam. Canada’s chief negotiator,
The planned warship visit to Steve Verheul, told reporters
Da Nang is likely to irritate talks were “reasonably con-
China, which is critical of U.S. structive,” without elaborating.
moves to add to its military A spokeswoman for U.S. Trade
muscle in the region. Representative Robert Lighthi-
Mr. Mattis and his Vietnam- zer declined to comment. Ken-
ese counterpart, Ngo Xuan neth Smith, Mexico’s chief ne-
Lich, discussed the planned gotiator, said the countries are
carrier visit during a closed- making “good technical prog-
door meeting in Hanoi, said ress” and it is analyzing the
Pentagon spokesman Navy proposal made by Canada.
Capt. Jeff Davis. —Chester Dawson in Detroit
—Associated Press contributed to this article.
 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.
BUSINESS & FINANCE
© 2018 Dow Jones & Company. All Rights Reserved.
S&P 2839.25 À 0.06% S&P FIN g 0.19%
Dell Weighs Strategic Alternatives
Options could include
an IPO and deal with
VMware; review is at
preliminary stage
BY DANA CIMILLUCA
AND DANA MATTIOLI
Dell Inc. is considering a
range of strategic alternatives
that could transform the
maker of PCs and data-stor-
age devices, according to peo-
ple familiar with the matter.
In the review, which is in a
preliminary stage, the closely
held technology giant is ex-
pected to explore options in-
cluding an initial public offer-
ing and a purchase of the rest
of VMware Inc., according to
people familiar with the mat-
ter. VMware is a publicly
traded cloud infrastructure
company.
VMware has a market
value north of $50 billion.
Talks between the companies
are at an early stage, one of
Wild Ride
The dollar swung sharply this week as
U.S. officials spoke at Davos about its
value. But other factors had an impact in
foreign-exchange trading, as several large
Asian countries have bought dollars in a
bid to weaken their currencies to keep
exports competitive.
Foreign-exchange reserves (excluding gold)
$4.0 trillion
3.5
3.0
2.5
2.0 Hong Kong, Korea,
Singapore, Taiwan
1.5
1.0
Indonesia, Malaysia,
0.5 Philippines, Thailand
0 –120
2005 ’10
Sources: Council on Foreign Relations (reserves); WSJ Market Data Group (currencies)
Trump’s Remarks Give the Dollar a Boost
BY IRA IOSEBASHVILI
AND CHELSEY DULANEY
The dollar staged a powerful
late-day comeback Thursday
after President Donald Trump
said the U.S. currency would
get “stronger,” appearing to
contradict comments made
only the day before by his
Treasury secretary.
The mixed messages from
the administration sent the
no
dollar on a wild ride over the
past two trading sessions, first
reeling against major curren-
STREETWISE | By James Mackintosh
The Global Economy
Is Great. Be Afraid.
Cognitive
dissonance is
in the air.
This year’s
mental split
allows finance
chiefs to believe that every-
thing’s bullish, the world
economy is finally in syn-
chronized growth mode and
markets are quite rightly on
fire—while worrying that it
is all just too good to last.
“Everybody’s making
money, and the clouds on
the horizon don’t look very
threatening,” said Stephen
Schwarzman, chairman and
chief executive of private eq-
uity group Blackstone Group
LP. “That’s enough to create
a positive environment.”
Mr. Schwarzman is bullish
on the economy but like
many others isn’t going all-
in; the risks are just too
great with asset prices al-
ready so high. Geopolitics
and trade are the fears most
often aired at the World
Economic Forum this week,
while an end to the easy
money from central banks
has a few concerned. An-
TECHNOLOGY: FOR BROADCOM’S CEO, ADMIRERS AND SKEPTICS B5
* * * **
S&P IT g 0.24%
Once the largest PC maker, Dell is now known for its corporate products like storage servers.
the people said.
It isn’t clear what other
options might be on the ta-
ble. A public listing would be
one of the biggest IPOs in re-
cent years and could provide
a shot in the arm for the
sluggish new-issue market. It
could also provide the com-
pany with cash to invest in
Dollar's performance vs. Asian currencies
16 %
on
12
us l,
8
4
al a
e
0 piled overseas profit. Earnings
ci on
–4
China
–8
2013
er rs
Monthly change in the People’s Bank of China’s foreign reserves
$80 billion
40
m e
0 buted to China, due to increased
–40
m rp
–80
2013
co Fo
cies like the euro and yen be-
fore rebounding on Thursday
to finish higher. The dollar’s
sudden turnaround also roiled
commodities markets, sending
oil and metals prices tumbling.
“The dollar is going to get
stronger and stronger, and ulti-
mately I want to see a strong
n-
dollar,” Mr. Trump said during
a CNBC interview at the World
Economic Forum in Davos,
Switzerland.
Mr. Trump added that he
thought remarks by Treasury
Secretary Steven Mnuchin,
other danger comes from
big investors buying into a
rally they don’t really be-
lieve in, leaving them more
tempted to race for the exit
if there is any negative sur-
prise.
“The consensus here is
very, very upbeat,” said Mi-
chael Sabia, who runs $300
billion as CEO of Caisse de
dépôt et placement du Qué-
bec. “This is a great period
we’re in, but enjoy it while
it lasts. I don’t think it will
go away in a hurry, but over
the long term the laws of
gravity will come back.”
Standard Chartered PLC
Chairman José Viñals said
things will probably be fine,
and central banks are likely
to stay dovish. “But there
may be inflation surprises
so that increases in rates are
faster than the market’s
pricing, and that concerns
me,” he said.
The twin questions are
how far equities could rise
before falling back, and
when it might happen. Scott
Minerd, chief investment of-
Please see STREET page B2
THE WALL STREET JOURNAL.
DJ TRANS g 1.58% WSJ $ IDX À 0.16%
the business and pay down
debt.
That or a full takeover of
VMware would be the latest
in a series of big deals that
have transformed Dell in the
last five years—and loaded it
with debt.
The company went private
in a roughly $25 billion lever-
Chinese Yuan
’14 ’15
’14 ’15
who said on Wednesday at Da-
vos that a “weaker dollar is
good for trade,” had been
taken out of context by inves-
tors who fled the dollar.
Their remarks represented a
break from past administra-
tions, which have worried that
any comments about the value
of the world’s reserve currency
risked disrupting global invest-
ment flows or influencing in-
terest rate movements.
Stock and bond markets
have mostly shrugged off Mr.
Trump’s comments on the Rus-
Why a Startup Was Sued for Fraud
BY ROLFE WINKLER
Last winter, Goldman
Sachs Group Inc. presented
Silicon Valley investors with
what seemed like a hot oppor-
tunity in Chicago.
Advertising company Out-
come Health was one of the
city’s rising stars, run by a
charismatic founder with close
ties to local billionaire J.B.
Pritzker.
Revenue was soaring, prof-
its were impressive, investors
were promised a guaranteed
return and Goldman’s involve-
ment gave Outcome the back-
ing of a blue-chip firm.
Those were some of the
highlights that led experienced
startup investors to put $478.5
million into Outcome last
spring at a valuation the com-
pany said was $5.5 billion.
The investors placed the
Outcome bet despite multiple
warning signs, a Wall Street
Journal examination shows, il-
lustrating how even the savvi-
est investors can gloss over
potential issues in pursuit of a
big score.
Outcome carried significant
debt and had no independent
board oversight. Its chief exec-
utive and co-founder, Rishi
Shah, had publicly discussed
how the company’s growth
LIBOR 3M 1.760
BABU/REUTERS
aged buyout in 2013 by its
founder, Michael Dell, and in-
vestment firm Silver Lake. In
2016, Dell bought data-stor-
age company EMC for $67
billion in the largest technol-
ogy takeover ever.
When the deal closed in
late 2016, Dell employed
about 140,000 people globally
Korean Won New Taiwan Dollar
’16
’16
sia investigation, threats
against North Korea and his
public feuding with members
of Congress and his own ad-
ministration.
But the sudden foreign-ex-
change volatility suggests that
the president’s thoughts on the
dollar can have a greater im-
pact on financial markets,
making U.S. policy harder to
predict and raising the pros-
pect of more price swings
ahead.
The spate of commentary
from top U.S. officials on the
Outcome’s President Shradha Agarwal, left, and CEO Rishi Shah.
strategy required flawless exe-
cution to avoid selling some-
thing “that doesn’t exist.”
He and his co-founder
Shradha Agarwal would also
reap an unusually large payout
from that investment while
maintaining control of the
company.
An Outcome spokesman
said in a statement: “Through-
out the monthslong invest-
ment diligence process Out-
Friday, January 26, 2018 | B1
NIKKEI (Midday) 23703.83 À 0.15%
and had $74 billion in reve-
nue. It said it would maintain
operations in Hopkinton,
Mass., where EMC, a pioneer
in data storage, was located.
It is now the world’s largest
privately controlled tech
company.
Mr. Dell indicated at the
time that the company still
had an appetite for acquisi-
tions. But the deal making
has added a significant
amount of debt to Dell’s bal-
ance sheet. The company cur-
rently has about $51 billion of
debt, according to S&P Capi-
tal IQ.
Dell, which pays roughly
$2 billion in annual interest
on its debt, is among the
heavily indebted companies
that is expected to be hurt by
the tax bill Congress passed
at the end of last year. The
bill caps companies’ ability to
deduct interest expense from
their taxes at 30% of earnings
before interest, taxes, depre-
ciation and amortization.
Please see DELL page B2
.
ly
Thai Baht
’17
’17
THE WALL STREET JOURNAL.
dollar’s value “is unusual, in a
historical context,” said Chris-
tian Lawrence, senior market
strategist at Rabobank. “But
we know that Trump likes to
speak his mind. If he wants to
talk about the dollar he will
talk about the dollar.”
Mr. Mnuchin’s comments
drew criticism from European
Central Bank President Mario
Draghi on Thursday, as the
euro broke $1.25 for the first
time in three years.
Mr. Draghi attributed some
Please see DOLLAR page B2
OUTCOME HEALTH
come Health maintained full
transparency, cooperated, and
proudly shared the company’s
10-year record of delivering
health information to patients.
Investors actively reviewed
hundreds of documents, inter-
viewed employees and spoke
directly with customers and
partners about Outcome
Health’s success.”
Outcome, which was
founded in 2006, puts flat
See more at WSJMarkets.com
Caterpillar
Breaks
Losing
Streak
BY ANDREW TANGEL
AND BOB TITA
Caterpillar Inc., the world’s
largest maker of heavy machin-
ery, said Thursday it broke a
four-year streak of declining
sales and signaled optimism
about most of its construction
and mining markets.
While the Deerfield, Ill.-based
manufacturer didn’t offer a rev-
enue forecast for 2018, execu-
tives said they expect sales to
continue their upswing this
year.
“The global economy is the
strongest it has been in several
years, with nearly every region
of the world expected to grow in
2018,” Chief Financial Officer
Brad Halverson told Wall Street
analysts.
Annual revenue jumped 18%
to $45.5 billion in 2017, follow-
ing four consecutive years of
weak sales of Caterpillar’s iconic
yellow bulldozers, mining trucks
and other equipment.
Caterpillar reported a loss in
the fourth quarter, however, as
it took a one-time charge related
to changes to the U.S. tax code
signed into law by President
Donald Trump in late December.
Much of the charge stemmed
from a mandatory tax on stock-
excluding the tax charges and
other items topped analysts’ ex-
pectations.
The manufacturer said the
largest increase in sales came
from North America amid
growth in demand for its heavy
machines and aftermarket parts.
About half of its sales growth in
the Asia-Pacific region was attri-
building construction and infra-
structure investment.
Caterpillar told investors it
Please see SALES page B6
INSIDE
INTEL’S
REVENUE GETS
A 4% POP
EARNINGS, B2
screens and tablets in doctor
offices and streams pharma-
ceutical ads to them. Its reve-
nue grew swiftly in the years
before the May 2017 funding
round, but behind the scenes
the company faced issues.
Former employees and ad-
vertisers alleged that from
2014 through 2016, some Out-
come employees had charged
advertisers for ad placements
on more screens than the
startup had installed, allega-
tions that the Journal re-
ported in October.
Outcome had offered free
advertising worth tens of mil-
lions of dollars in 2017 to
make up for shortfalls, people
familiar with the arrange-
ments said.
Some drug advertisers later
suspended their business with
the company.
In response to an earlier
Journal inquiry, a company
spokesman said Outcome had
put three employees on paid
leave and hired the law firm of
former U.S. attorney Dan
Webb “to review allegations
about certain employees’ con-
duct” raised internally and by
the Journal.
The spokesman said Out-
come “has always upheld the
highest ethical standards.”
Please see FRAUD page B10
 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.

B2 | Friday, January 26, 2018 * **** THE WALL STREET JOURNAL.

INDEX TO BUSINESSES BUSINESS & FINANCE

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

A
Abbott Laboratories.B12
E*Trade Financial.....B11
F
Pfizer.........................B12
Philip Morris
Wal-Mart,
Rakuten
Adidas ......................... B3 International.............A1
Fiat Chrysler
Advanced Micro Devices PicnicHealth................B4
Automobiles ............. B6
.....................................B2 Ford Motor.............B5,B6 Q

Take On
Alaska Air Group........B6 G Qualcomm...................B5
Alphabet.......B4,B10,B11
General Dynamics.......B6 R
Altria Group................A7
General Motors...........B6 Rakuten.......................B2

Amazon.com........B2,B11
American Airlines Group
............................. B6,B11
Amgen.......................B12
Apple....................B4,B11
athenahealth...............B4
Autonomic...................B5
B Intercontinental
GlaxoSmithKline.......B10
Glencore .................... B10
Goldman Sachs Group B1
H-I
Huntsman..................B12
Intel......................B2,B12
Amazon
Raytheon.....................B6
S
Sabic..........................B12
Sanofi........................B12 BY SARAH NASSAUER
Saudi Basic Industries AND MAYUMI NEGISHI
.....................................B3
Sky...............................B6
Wal-Mart Stores Inc. is

DAVID BECKER/GETTY IMAGES

Bank of America.......B11
Biogen ....................... B12
Bioverativ..................B12
Boeing....................A3,B6
British American
Tobacco.....................A7
Broadcom .................... B5
C Lockheed Martin.........B6
Capital One Financial
Exchange.................B11 Skydance Media..........B4
joining with Japan’s largest
J Southwest Airlines
............................. B6,B11 online retailer, Rakuten Inc.,
Jamison Capital
Partners..................B10 Starbucks....................B6 to bolster its efforts to com-
Japan Tobacco.............A7 T pete with Amazon.com Inc.
JetBlue Airways ......... B6 TCW Group................B10
in Asia and the U.S.
L Tencent Holdings........B4 The two companies said
3M ............................. B11 Thursday they would form a
LVMH Moët Hennessy Toronto-Dominion Bank Visitors to the CES consumer-electronics show in Las Vegas checked an Intel display this month. joint venture to sell online
groceries in Japan and work

Intel Revenue Gets a Pop

...................................B11
Cashbet ..................... B12
Caterpillar............B1,B11
Cavium.........................B5
Cboe Global Markets B11
Celgene......................B12
Cerner..........................B4
Charles Schwab ........ B11
Citigroup....................B11
Clariant ................ B3,B12
D-E
Dell Technologies........B1
Delta Air Lines ........... B6
Discover Financial
Services...................B11
Engie..........................B12
Epic Systems .............. B4
INDEX TO PEOPLE
A Harkins, Bryan..........B11
Agarwal, ShradhaB1,B10
Louis Vuitton............B6 ...................................B11
M TransLoc......................B5 together to sell e-books and
21st Century Fox........B6 audiobooks in the U.S.
Makeblock...................B4
Merck.........................B12 U In Japan, Wal-Mart’s local
Microsoft ............. B4,B11 Union Pacific...............B3 retail brand, Seiyu GK, will
United Continental BY TED GREENWALD division, where Intel faces join with Rakuten to expand
N
Newell Brands.............B3
Holdings.............B6,B11 Record Revenue stepped up competition from its online grocery-delivery
Nike.............................B3 V Intel Corp. reported record Advanced Micro Devices Inc., service in the second half of
Intel's fourth-quarter revenue
Northrop Grumman....B6 Valeant Pharmaceuticals growth in fourth-quarter reve- rose as sales in its sales fell 2%, in line with the this year. The partnership
Novartis.....................B12 International.............B3 nue as sales in its data-center quarter’s drop in PC shipments will include opening a com-
Vivo Electronics..........B5 data-center business
O business jumped 20%, while 4Q 2017 tallied by industry researcher bined e-commerce fulfill-
VMware.......................B1 increased 20%
Oppo Electronics.........B5 the company swung to a quar- $17.05 billion Gartner Inc. ment center in the Tokyo
W $16 billion
Outcome Health..B1,B10 terly loss as it booked a $5.4 Intel has been trimming area to deliver groceries to a
P Wal-Mart Stores.........B2 billion charge after recent costs to keep margins up as it wider geography of homes.
Pershing Square Capital Z changes in U.S. tax law. transitions from PCs to a In the U.S., Wal-Mart will
Management.............B3 Zoetis........................B12 Overall revenue rose 4% to 12 broader technology portfolio. work with Rakuten’s Cana-
$17.05 billion. Intel reported a It has pledged to bring annual dian unit, Rakuten Kobo, to
$687 million loss, compared operating expenses to 30% of offer for the first time e-
with a profit of $3.56 billion a
year earlier, largely because of
8
revenue by 2020. In the quar-
ter, it cut those costs to 31% of
books and audiobooks in the
U.S., as the company tries to
the tax impact. revenue, compared with 34% make walmart.com, a desti-
P 4
The company said it expects in the year-earlier period and nation for a wider variety of
I Perkins, Bill...............B12 a 2018 tax rate of 14%, com- averaging 33.7% for the year. purchases and activities.

.
Ali, Syed......................B5 Icahn, Carl.................B12 Polcari, Kenny...........B11 pared with an adjusted rate of The company also posted The deal “enables us to
0

Ashken, Ian.................B3
B Pritzker, J.B ................ B1
Bennett, Owen ........... A7
C Ravich, Jess..............B10
Calantzopoulos, Andre
.....................................A7
Chappell, William ....... B3
Cooper, Kyle..............B12
J
Jamison, Stephen.....B10
K
Kelly, Gary...................B6
Kinahan, J.J...............B11
Klevorn, Marcy............B5
Krzanich, Brian ........... B2
L Sole, Domenico De ..... B3
Polk, Michael .............. B3 23% in 2017, which doesn’t ac-
count for the tax impact.
R The chip giant also an-
nounced a 10% rise in its an-
S
on
Rotolo, Ray ............... B10 nual dividend to $1.20 a share.
Sales in the division re-
Shah, Rishi .......... B1,B10 sponsible for server chips and
other data-center gear—a crit-
us l,
2015 ’16 ’17
Sources: S&P Capital IQ; the company
THE WALL STREET JOURNAL.
tomers to continue.
Intel’s report Thursday
came as the company contin-
ly
strong growth in some areas quickly and efficiently
where it has been seeking to launch a full eBook and au-
expand its market, though the diobook catalog on Wal-
businesses for now are much mart.com,” Scott Hilton,
smaller than PC and data-cen-
ter chips.
chief revenue officer for
Wal-Mart’s U.S. e-commerce
Intel shares were up 3.5% unit, wrote in a blog post
after hours, having fallen 0.5% Thursday. The digital books

Cowhig, Michael ......... B3 Stier, Joel..................B12 ical area as personal-computer ues to work on closing re- to $45.30 in regular New York could also be offered in
Leviner, Noga..............B4
D Sullivan, ChristopherB11 sales wane—climbed to $5.6 cently disclosed security holes trading. Through Thursday’s stores.
M
al a

Swan, Bob...................B2
e
Davis, Richard...........B11
Madra, Sunny..............B5
billion. That pushed full-year in virtually all its processors. close, the stock was up 29% Amazon, which started as
Dell, Michael...............B1
Marchionne, Sergio .... B6
T growth in the segment to 11%, The company has said that since late July, when surging an online bookseller and has
F above Intel’s goal of high sin- it doesn’t expect the security second-quarter revenue and grown rapidly into other cat-
ci on

Meister, Keith...........B12 Tan, Hock .................... B5

Forte, Tom.................B11
Franklin, Martin..........B3
G-H
Gilbert, Martin............B2
Guiony, Jean-Jacques.B6
Millstone, David ......... B3
Moakes, Nick .............. B2
N-O
Nkono, John..............B10
Ott, George...............B10
Topol, Eric ................... B4 gle-digit growth for 2017. flaws to affect its finances, but profit sparked investor confi- egories, dominates the U.S.
W In an interview with The questions linger about just dence that the company could market for e-books and has
Webb, Dan...................B1 Wall Street Journal, Intel fi- how seriously customers are overcome its challenges. sold millions of its Kindle e-
Winter, David..............B3 nance chief Bob Swan attri- affected, especially those that The company’s forecast for readers. Kobo sells its own
Woods, John.............B12 buted the growth to demand operate large data centers, and the current year was for profit e-reader device, which Wal-
er rs

from cloud vendors and com- what redress they might de- of about $3.55 a share on an Mart will now carry.
munications networks, as well mand. At the outset of the adjusted basis, on revenue of Wal-Mart has expanded

DELL opment to create hardware

and software that helps man-
as surprisingly strong sales to
corporate data centers, which
company’s conference call
with analysts, Chief Executive
about $65 billion, compared
with $3.46 a share in adjusted
its U.S. e-commerce sales in
recent quarters after rolling
m e

age billions of everyday de- had been sluggish. Brian Krzanich said Intel is profit and $62.8 billion in rev- out online grocery services
vices connected to the web. “We saw strong customer working around the clock to enue for 2017. and buying a string of online
Continued from page B1 Silver Lake, which main- demand for high-performance fix the flaws, but conceded —Maria Armental startups, including Jet.com
m rp

Once the largest personal- tains a big stake in Dell, has a products across the board,” he that “while we’ve made prog- contributed to this article. Inc. in 2016, placing the
computer maker, Dell is now history of backing the deal said. He cautioned, however, ress, I am acutely aware that site’s founder Marc Lore at
known as much for its corpo- making of its portfolio com- he doesn’t expect the rising we have more to do.”  Heard on the Street: No the head of U.S. e-commerce
rate products like storage, panies. pace of sales to corporate cus- In the personal-computer flaws in Intel results .......... B12 operations.
servers and security software In addition to Dell, it has
co Fo

following its deal to buy done so at Broadcom Ltd.,

EMC. It is also joining the
crowded field of companies
wagering big money on the
Internet of Things, as the
which is currently pursuing a
$105 billion hostile takeover
of Qualcomm Inc., and Sy-
mantec Corp., which has pur-
STREET dation Wellcome Trust, said
he is “subtly altering the
shape” of the trust’s £23 bil-
lion ($32.7 billion) portfolio
Banks as a Treasury Hedge
Banks have outperformed when bond yields rise, and
underperformed when yields fall.
computing giant looks for chased a string of cybersecu- Continued from the prior page after riding the market
new avenues of growth amid rity companies. ficer at Guggenheim Part- boom for the past nine Outperformance of U.S. banks over the U.S. stock market
a shift in corporate spending VMware, based in Palo ners, said he expects the years. That means taking a 15 percentage points
to the cloud. Alto, Calif., produces software Federal Reserve to increase little of the profit on the
The Round Rock, Texas, related to databases, storage rates four times this year in- trust’s hefty technology- 10
company recently said it will and Internet of Things. When stead of its forecast of three, company holdings and liking 5
commit $1 billion over three Dell bought EMC in 2016, and a recession is a danger banks—in part because oth-
years in research and devel- EMC owned 80% of VMware. next year as higher rates hit ers will start buying them 0
indebted corporate issuers. too to hedge against infla-
n-

–5
But in the meantime, he tion risk.
said, equity markets have “You would expect banks –10
“all the trappings of a ma- to become very well-owned,”
nia” that could take the S&P he said. –15
no

500 to 3600 this year, up
27% from 2839.25 on Thurs-
day.
Mr. Minerd’s solution is to
buy long-dated bonds to
protect against the economy
falling back, while buying
cheap call options to capture
a rise in share prices.
A simpler strategy can be
followed by those who think
things will probably be fine,
but that there is a serious
risk of Fed increases derail-
ing the market: Buy banks
and insurers, avoid technol-
ogy and growth stocks that
CLODAGH KILCOYNE/GETTY IMAGES
The problem with this 2015 ’16 ’17
thesis, of course, is that it 10-year Treasury yield
might already have hap-
pened. U.S. bank stocks are 3.0%
up a quarter since the start
of September, handily beat- 2.5
ing the market. Yet, for the
past three years—broadly
2.0
since investors started to
believe that their capital
problems were fixed—they 1.5
have been an almost perfect
leveraged bet on falling 10- 1.0
year Treasury yields. Banks
outperformed the wider 2015 ’16 ’17
stock market when bond Source: Thomson Reuters Datastream THE WALL STREET JOURNAL.
yields rose and underper-

will be hurt by higher dis-
count rates. Banks should do
well in a growing economy
and should benefit from ris-
ing interest rates and bond
yields, at least until money
gets so tight it hits corpo-
rate creditworthiness.
Nick Moakes, chief invest-
Dell founder Michael Dell took the firm private in 2013. ment officer at British foun-
formed when they fell.
Still, inflation and higher
rates are minority concerns.
The predominant concern—
aside from whether the
next-door party might be
better—is that no one is
worried.
“The complacency is
what’s really alarming,” said
Martin Gilbert, co-CEO of The market’s been rising
Aberdeen Standard Asset as it prices in a better eco-
Management. “Everyone’s nomic and earnings outlook,
worried about not being and picks up momentum.
worried.” There is no way to know
It is hard to hedge against when the economic outlook
self-satisfaction. But inves- might change—but the less
tors who think everything’s investors fear bad news, the
wonderful are prone to be harder any unpleasant sur-
disappointed. prise will hit stock prices.

DOLLAR with regard to its possible im-

plications for the outlook for
price stability,” Mr. Draghi
said.
ECB is preparing to unwind
years of extraordinary mone-
tary stimulus, a move that in-
vestors expect to boost the
said Brad Setser, a senior fel-
low at the Council on Foreign
Relations and a former top U.S.
Treasury official in the Obama
dollar, Reuters reported.
Those interventions are
likely to continue if the dollar
weakens further, Mr. Setser
deficit widened to a nearly six-
year-high, according to the
Commerce Department’s most
recent data.
Continued from the prior page A stronger euro makes the euro. administration. said. While a weak dollar helped
of the euro’s recent gains to ECB’s task of increasing the The dollar may have a Several large Asian econo- The dollar’s yearlong slide propel exports to a record high
“the use of language that rate of inflation harder because harder time weakening against mies, including South Korea so far has had mixed effects on that month, growth failed to
doesn’t reflect the terms of cheaper imported goods weigh the currencies of some coun- and Thailand, appear to have the $500 billion annual U.S. keep pace with the rising de-
reference that have been on prices. tries in Asia, where monetary already weakened their curren- trade deficit that Mr. Trump mand for imported goods in
agreed,” although he didn’t Eurozone inflation has re- authorities are expected to cies in the past few weeks, Mr. has railed against since taking the U.S.
name Mr. Mnuchin. He warned mained below the central fight the appreciation of their Setser said. The Bank of Thai- office. Multinationals such as Meanwhile, there was a
at a press conference that such bank’s target of just under 2% own currencies, some analysts land bought some $3 billion in International Business Ma- drop in U.S. exports to nations
language violated longstanding for five years. said. the first two weeks of the year chines Corp. and Coca-Cola Co. that Mr. Trump has accused of
international agreements de- Yet some analysts believe “Historically, many export- in a bid to weaken their cur- have touted the impact of a using unfair trade practices, in-
signed to prevent currency the ECB’s options for tamping dependent Asian economies rency, the Thai baht, Mr. Setser weaker dollar on their earnings cluding Mexico and China, de-
wars. the euro’s strength against the have actively intervened to estimates. The Bank of Korea recently, a benefit that analysts spite the weaker U.S. currency.
The currency volatility “rep- dollar are limited. keep their currencies weak purchased $1.5 billion on Jan 8, say is helping to support U.S. —Tom Fairless
resents a source of uncertainty, The eurozone economy has …and there is evidence that as the Korean won rallied to a stocks’ record run. and Mike Bird
which requires monitoring started 2018 strong, and the they are doing the same now,” three-year high against the In November, the U.S. trade contributed to this article.
 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.
THE WALL STREET JOURNAL.
Ackman
Holds
Stake
In Nike
BY DAVID BENOIT
AND SARA GERMANO
William Ackman’s Pershing
Square Capital Management
LP has taken a passive stake in
Nike Inc. based on a belief in
the sneaker giant’s long-term
growth prospects.
Mr. Ackman announced the
position, accumulated since
October, at an event for his in-
vestors Thursday evening, ac-
cording to a person familiar
with the matter. It isn’t clear
how big the stake is.
Mr. Ackman, one of the
best-known activist investors,
doesn’t intend to agitate for
change at the Beaverton, Ore.,
company, the person said, be-
lieving it is already on the
right path.
Nike has a market value of
about $110 billion. The shares
have only recently returned to
heights reached in late 2015.
The stock rose 1.9% in after-
hours trading Thursday, after
closing at $67.71.
Nike is overhauling the way
it brings its pricey Jordan
sneakers and sports jerseys to
market. The company—tradi-
tionally a wholesale distribu-
tor—said in October it would
shift away from what it called
“mediocre” retailers, focusing
instead on highlighting just 40
stores and chains from its
nearly 30,000 retail partners.
Nike founder Phil Knight
has stepped aside from day-to-
day operations but still holds
the title of chairman emeritus
and is a large shareholder with
supervoting shares. In 2015,
Mr. Knight created Swoosh
LLC to hold most of his shares.
Swoosh has the power to elect
75% of Nike’s board, and the
entity’s directors include sev-
eral Nike directors, including
Mr. Knight’s son, Travis.
The company is also aiming
to sell more online and directly
to its own consumers. Nike,
long a holdout from Ama-
zon.com Inc., finally agreed to
sell some of its products to the
e-commerce giant last spring
in hopes of fighting a growing
number of third-party sellers.
In recent years, Nike has
also faced competition from a
resurgent rival, Germany’s
Adidas AG, as well as upstarts
in the crowded women’s ath-
letic-wear category.
Pershing Square is facing
its own challenges after losing
$4 billion on a bet on drug-
maker Valeant Pharmaceuti-
cals International Inc. The
fund hasn’t made money in
any of the last three years,
and even after stabilizing
losses last year it remains well
below its highs, putting pres-
sure on Mr. Ackman to find
big stock winners in 2018. The
firm is already up about 30%
on the Nike bet, having bought
at about $52 a share, the per-
no
son said.
Clariant’s Rocky Relationship
With Activist Investors Ends
BY BRIAN BLACKSTONE
AND NICOLAS PARASIE
* *
Among the brands to be unloaded will be Rawlings baseball gloves and Goody hair accessories.
Newell to Shed Brands, Factories
Shares fall 21% on
reversal of effort to
build a conglomerate
of household products
BY SHARON TERLEP
AND CARA LOMBARDO
After spending billions of
dollars to scoop up rivals and
build a conglomerate of house-
hold products, Newell Brands
Inc. is reversing course, look-
ing to unload brands and shed
half its factories.
The company sells Sharpie
markers, Elmer’s glue, Rubber-
maid containers and Graco
us l,
baby strollers. It more than
doubled in size in 2016 when
al a
e
it acquired Jarden Corp., add-
ing Yankee Candle, Mr. Coffee
machines and Coleman camp-
ci on
ing gear to its portfolio.
But on Thursday, the Hobo-
ken, N.J., company said it
would focus on nine core con-
er rs
New Safety System Clogs Up Railroad Network
m e
BY PAUL ZIOBRO
m rp
Union Pacific Corp. says
new technology meant to pre-
vent train accidents is causing
congestion on the railway.
The largest U.S. railroad
co Fo
based on revenue is in the
midst of implementing positive
train control, or PTC, technol-
ogy, which is designed to auto-
matically stop a train to pre-
vent collisions or derailments.
But the system’s introduction
in certain locales is causing
problems as the railway works
out kinks in its operation.
“As we turn on more of our
footprint, that requires us to
debug and learn the system,”
Chief Executive Lance Fritz
n-
said in an interview Thursday,
adding that sometimes the
new technology “makes a train
stop where it’s not supposed
to stop.”
Master Fund Ltd., controlled
by Keith Meister. Corvex
BUSINESS NEWS
sumer divisions and look to
shed nearly everything else,
including all of the company’s
industrial and commercial
businesses. Among the brands
to go will be Rawlings baseball
gloves and Goody hair acces-
sories.
Newell, with 53,400 em-
ployees world-wide, said it
would reduce its factory and
warehouse footprint by half.
The company, which had $14
billion in 2016 revenue, said it
expects annual revenue of $11
onbillion once the restructuring
is completed.
The company also an-
nounced that three of its 12
board members had resigned,
including former Jarden CEO
Martin Franklin. The serial
deal maker had turned a food-
canning business into the
owner of more than 100 con-
sumer brands over a dozen
years before selling to Newell.
Newell shares dropped 21%
to $24.81 on Thursday, the
Union Pacific has been installing positive train control technology.
Mr. Fritz said the problems
have contributed to a slow-
down in the network recently,
including trains running 5%
slower and spending 12% more
time in terminals during the
fourth quarter. Problem spots
rose by 10% from the year-ear-
lier period to 4.7 billion Swiss
Friday, January 26, 2018 | B3
Cleaning Out the Closet
Newell plans to reorganize its segments and sell off certain brands.
Sales by segment for the first nine months of 2017
‘Live’ includes Crock-Pot, Graco,
Mr. Coffee and Rubbermaid
$3.8B
‘Learn’ includes Elmer's, Jostens,
Parker and Sharpie
RICHARD B. LEVINE/AVALON/ZUMA PRESS
$2.2B
Brands to be sold include
Consumer brands
Rawlings
Goody
U.S. Playing Cards
Source: the company
lowest since 2013. The drop tools and Levolor window cov-
erased about $3.5 billion in erings.
market value and the shares But by fall 2017, when Mr.
are now down nearly 50% Polk blamed struggling retail-
from a year ago. ers and paltry back-to-school
CEO Michael Polk said in sales for bleak quarterly re-
prepared remarks that a “sim- sults, investors were growing
pler” Newell better positions increasingly worried. Shares
the company to succeed in dy- tumbled by more than a quar-
namic times. A variety of fac- ter as Wall Street feared larger
tors hurt the company’s sales issues behind Newell’s woes.
.
last year, including decreased A company spokesman
ly
consumer demand for its noted that, even after the
brands, supply issues stemming downsizing, Newell will be far
from Hurricane Harvey and the bigger than it was before the
bankruptcy of Toys ‘R’ Us Inc. Jarden acquisition when the
Newell’s woes are an abrupt company had about $6 billion
reversal for a company that in annual revenue.
had been enjoying success in Newell ended up paying
the wake of the Jarden acqui- $18.7 billion for Jarden, includ-
sition. When the deal closed, ing $5.4 billion in cash, stock
Mr. Polk said he planned to issued and the assumption of
prune dozens of struggling debt. The combined company
brands so the company could had about $10 billion of long-
focus on others and combine term debt as of Sept. 30.
complementary product lines. SunTrust analyst William
Among the businesses Newell Chappell noted that Newell is
sold following the deal were selling Jarden businesses at
units selling K2 skis, Irwin multiples lower than what it
we have historically.”
U.S. railroads have spent
most of the past decade imple-
menting PTC, which the indus-
try estimates will cost around
$10 billion to install and an ad-
ditional $500 million to main-
tain annually. Congress has
pushed the deadline to complete
NATI HARNIK/ASSOCIATED PRESS
installation to the end of 2018.
Union Pacific has installed
the technology across 60% of
its network where required.
The company, which is based
in Omaha, Neb., plans to spend
a further $160 million this year
on the project.
Through Oct. 31, Union Pa-
cific had installed the technol-
are in Chicago, Kansas City ogy on nearly 2,000 out of the
and Houston. 5,600 locomotives where it was
Certain areas also have seen required, according to the rail-
a buildup in shipping inven- road’s latest report to the Fed-
tory and the railroad is unable eral Railroad Administration.
to keep up, he said. “We’re not The service problems caused
executing our game plan like a rise in the portion of Union
ADVERTISEMENT
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NOTICE OF SALE

  
‘Work’ ‘Play’ includes
includes
Quickie,
Rubbermaid
Coleman,
Marmot and
Ex Officio
Commercial,
Waddington
$2.1B
$2.0B
‘Other’ includes Bicycle, Goody
$838M
Commercial brands
Jarden Process Solutions
Waddington
Rubbermaid Commercial
Products
Mapa
THE WALL STREET JOURNAL.
paid to acquire the company.
Still, he said, the downsizing
is a good long-term move. “We
actually view today’s an-
nouncements as a positive in
which management is reset-
ting the deck,” he said.
In addition to Mr. Franklin,
the directors leaving the board
are former Jarden executive
Ian Ashken and former Gucci
CEO Domenico De Sole.
Chairman Michael Cowhig
said in a news release that it
is a natural time for the board
to “evolve,” given that the
company is more than a year
past the combination with
Jarden. A spokesman declined
to elaborate on the depar-
tures.
For the nine months ended
in September, the company re-
ported a profit of $1.1 billion
on about $11 billion in revenue.
Its biggest unit, which in-
cluded household products and
baby gear, accounted for $3.9
billion of the total revenue.
Pacific’s revenue consumed by
operating costs to 62.6% from
62% a year earlier. Railroads
aim to reduce the metric and
thus boost profitability.
Shares of Union Pacific,
which reported quarterly re-
sults Thursday, fell 5.4% to
$133.60. They are still up 20%
over the past year.
The railroad expects the
problems to clear over time
and for its operating ratio to
drop this year. It also expects
more volume to move through
its network, higher freight
rates and significant cost cuts.
In its latest quarter, the
company logged a 5% increase
in revenue, helped by higher
volume, fuel surcharges and
prices. Profit rose sharply to
$7.3 billion, helped primarily by
the recent corporate-tax over-
haul. Excluding that, earnings
rose about 5% to $1.2 billion.
 
 
   
 
  
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David Millstone; and Corvex months of 2017, Clariant sales long-term plan back out.... B12
 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.
B4 | Friday, January 26, 2018
CHINA CIRCUIT | By Li Yuan
Coding Startups Fail to Excite Parents
Chen Kun-
jie started
learning piano
when he was
4 years old,
practicing
Taekwondo at 7 and taking
lessons for the mathematics
Olympiad at 10. These after-
school tutoring classes are
typical for Chinese children.
Last year, at 11, Kunjie took
up something unusual
among his peers: coding.
“He’s very good at math
and gaming. With coding, he
can learn and play at the
same time,” says his father,
Chen Yu, an ethics teacher at
a technical high school in the
southeastern city of Fuzhou.
He says he doesn’t mind if
his son becomes a game pro-
grammer at Tencent Hold-
ings Ltd., the world’s biggest
online game company.
Teaching children to pro-
gram computers should be
the next big thing for ven-
ture investors and education
startups. The Chinese gov-
ernment backs it: Beijing
sees coding talent as vital to
its plans to make China a
technology powerhouse.
It is just not catching on
with parents, who readily
shell out to have their chil-
dren tutored in math and
English. “Coding is about the
only course that has the po-
tential to become as impor-
tant as English for students
and for the industry,” says
Zhang Lijun, a venture capi-
talist who has been investing
in education startups for five
years. “But nobody knows
when that’s going to happen.”
Ms. Zhang says the re-
sponse from parents to cod-
ing has been lukewarm.
Crucially, coding isn’t one
of the subjects tested in the
college entrance examination
that makes or breaks a
chance for a university edu-
cation. English and math are.
Chinese families—who typi-
cally have only one child—
are willing to spend heavily
no
A coding class in Hong Kong. Families are more willing to pay for English and math tutoring.
to improve the chance of en-
try to a top university, seen
as a pathway to a promising
career and social mobility.
For the 2016-17 school
year, families spent 1.9 tril-
lion yuan ($298.3 billion) on
pre- through secondary-
school education, according
to a Peking University survey
of more than 40,000 fami-
lies. One-third of the spend-
ing went to extracurricular
tutoring courses such as
English and math, according
to the survey.
T
he Chens aren’t sure
how long they’ll con-
tinue Kunjie’s online
coding courses. As a fifth-
grader, he already studies
us l,
past 11 p.m. most weekdays.
Kunjie’s homework load will
al a
e
get heavier next year as he
prepares for the middle-
school entrance exam.
ci on
Despite churning out more
graduates in science, technol-
ogy, engineering and mathe-
matics—so-called STEM
fields—than any other coun-
er rs
try and despite a government
heavy with technocrats, China
has been slow to see coding
m e
m rp
co Fo
n-
TECHNOLOGY
STEM Sell
Investment in Chinese startups in STEM (science, technology,
engineering and math) education is a small but growing portion of
overall investment in education ventures.
Total education investment,
in Chinese yuan
3.8
billion 12.6
billion
Investment
in STEM
22 million 48m
2014 2015
on
Note: 2017 figures as of Aug. 31; 100 million yuan=$15.7 million
Sources: Jiemodui.com; Deloitte China
as a necessary part of primary
or secondary education. That
is starting to change. Since
2015, the Chinese government
has been issuing directives
encouraging schools to experi-
ment with STEM education,
including coding.
But a plan by China’s edu-
cation ministry describes the
setting of national standards
for STEM education and pro-
viding the teacher training,
textbooks and other tools as
* * THE WALL STREET JOURNAL.
made information technol-
ogy, which includes coding,
part of the college entrance
exam. That is setting the ed-
ucation-technology industry
abuzz with suggestions that
the sector is about to launch
into a period of fast growth.
“One thing about China is
that if the government wants
to promote something, it will
happen quickly,” says Wang
Jianjun, the founder and
chief executive of Makeblock
Co., a Shenzhen-based
XAUME OLLEROS/BLOOMBERG NEWS
startup that provides educa-
tional tools for learning
computer programming.
M
akeblock first fo-
cused on the Euro-
pean market in 2014
and didn’t enter the China
market until 2016. Now,
while Europe is its biggest
market, China is the fast-
growing second.
English-teaching startups
still draw more money. VIP-
KID, which offers one-on-one
online English courses,
raised $200 million in a
funding round in August that
valued the company at $1.5
billion. STEM startups are
attracting attention. Nine
deals for STEM education
10.6 9.6 startups, including four fo-
billion billion cusing on coding for chil-
.
dren, received 316 million
ly
yuan in funding in the first
178m 316m eight months of 2017, com-
pared with 178 million yuan
2016 2017
and eight deals for the whole
of 2016.
THE WALL STREET JOURNAL. New Oriental Education
& Technology Group, the
daunting. It said this month grandfather of English tutor-
that coding will become part ing in China, this week in-
of the high-school curricu- vested 20 million yuan in a
lum, but it didn’t set a dead- startup teaching children
line. Primary schools will programming.
phase in programs in coming Lai Qianqian, who works
years. Britain, by compari- in a factory in Shenzhen, en-
son, adopted in 2014 a na- rolled her 7-year-old son in
tional computing curriculum an online coding course in
that included coding lessons May. Her friends, though, are
for children as young as 5. still reluctant to sign up their
Last year, in a pilot proj- children. At 100 yuan an
ect, the prosperous east hour, they choose English
coast province of Zhejiang and math over coding.
The ‘Health Records’ feature will show allergies, immunizations, lab results, medications and other data.
iPhones Will Soon Be Able
To Import, Store Health Data
BY TRIPP MICKLE concentration among medical-
record systems. “Apple is in
With its leap into the elec- the right spot,” said Eric To-
tronic health-records field, pol, author of “The Creative
Apple Inc. is trying to solve a Destruction of Medicine” and
problem that has vexed tech a physician at the nonprofit
companies for years: simplify- Scripps Research Institute.
ing disparate networks of Starting in 2011, the U.S.
medical information and put- government spent an esti-
ting more data into the hands mated $40 billion in stimulus
of consumers. money on health-care informa-
Apple on Wednesday said tion technology, according to
an update to its operating sys-
tem for iPhones and iPads this
spring will include a “Health
Records” feature that will im-
A dozen hospitals are
port and store medical infor- participating in
mation covering allergies, con-
ditions, immunizations, lab
Apple’s new medical-
results, medications, proce- records initiative.
dures and vitals. A dozen hos-
pitals are participating, in-
cluding Johns Hopkins
Medicine in Baltimore, Cedars- McKinsey & Co., encouraging
Sinai in Los Angeles and Penn doctors and hospitals to install
Medicine in Philadelphia. electronic-medical-records
The effort to securely sim- systems and triggering a mas-
plify and democratize health sive shift toward electronic
records won’t be easy, say health information.
physicians who watched Mi- Apple said it has secured
crosoft Corp. and Alphabet participation from two of the
Inc.’s Google wrestle with sim- U.S.’s largest medical-records
ilar efforts over the years. providers, Epic Systems Corp.
Apple’s late arrival to medi- and Cerner Corp., which ac-
cal records, though, gives it count for more than 50% of
advantages its rivals didn’t en- medical-records management,
joy, physicians say, including as well as Athenahealth Inc.,
the benefits of more consoli- which accounts for almost 2%,
dated hospital networks and according to KLAS Research,
WSJ.com/Tech
Skydance
Media to
Sell Stake
To Tencent
BY BEN FRITZ
Chinese internet giant Ten-
cent Holdings is buying a
piece of Skydance Media, the
Hollywood company behind
“Terminator.”
Tencent has sealed a deal
giving it a little less than 10%
of Skydance, on terms that
value the production company
at approximately $1.5 billion,
said a person with knowledge
of the agreement.
This person didn’t disclose
the exact dollar amount of the
investment.
As part of the arrangement,
Tencent and Skydance will co-
finance movies, TV shows and
videogame projects while
lending their expertise to each
other in their respective coun-
tries, the two companies said
in a statement.
Eight-year-old Skydance at
first primarily invested in
movies made by its Hollywood
studio partner, Viacom Inc.’s
Paramount Pictures, but has
more recently increased its
own film development and
production capabilities while
also expanding into television
and virtual reality.
Tencent, an online video-
game giant that is one of
China’s most powerful compa-
nies, has a small motion-pic-
ture division that has made its
own films and invested in such
Hollywood productions as
“Wonder Woman” and “Kong:
Skull Island,” helping to mar-
ket and promote them in its
home country.
Its online assets include
one of China’s largest ticketing
services.
Tencent may help to dis-
tribute and market Skydance
movies in China, in addition to
collaborating on TV shows and
interactive projects, while Sky-
dance will assist Tencent with
its growing entertainment am-
bitions in the West.
AMANDA LOMAN /ALBANY DEMOCRAT-HERALD/ASSOCIATED PRESS
which analyzes the industry.
But Apple needs to get
more hospitals to share data
in order for the Health Re-
cords feature to be valuable,
said Noga Leviner, co-founder
of PicnicHealth, a startup that
helps patients consolidate
their medical records.
Some hospitals in the same
system use different variations
of electronic medical records—
even from the same provider—
and frequently don’t have
agreements to share data, Ms.
Leviner said. People want
complete information—not
just records from only one of
six doctors, she said.
Another challenge: expand-
ing information beyond simple
listings such as allergies and
lab results, she said. Tens of
millions of Americans with
chronic conditions need more
detailed information, such as
pathology reports for cancer
patients or medical images for
people with knee injuries.
Apple’s push into medical re-
cords is its latest effort to break
into the $3.2 trillion U.S. health-
care market. Last year, the com-
pany announced its first medi-
cal study of heart rhythms
using the Apple Watch and it
launched HealthKit in 2014,
providing a way for health
apps to share information.
 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.

THE WALL STREET JOURNAL. * * Friday, January 26, 2018 | B5

TECHNOLOGY

For Broadcom’s CEO, Love and Skeptics

Wall Street cheers
amid Qualcomm bid,
but others question
his approach to R&D
BY TED GREENWALD
In the innovation-obsessed
technology industry, Broad-
com Ltd. Chief Executive Hock
Tan unapologetically favors
surefire profits over visionary
projects.
Through acquisitions, fiscal
discipline and tightly con-
trolled investment, Mr. Tan,
the chip industry’s most visi-
ble deal maker, has been help-
ing drive profit growth at
Broadcom, piling up cash and
paying out dividends at a pro-
digious pace.
Mr. Tan’s approach brings
kudos from Wall Street, but it
doesn’t always sit well with
Wall Street is eating it up.
In the past five years, Broad-
com shares have expanded
more than sevenfold, while the
PHLX Semiconductor Index
more than tripled.
If Mr. Tan has his way, his
roster soon will include mar-
ket-leading products from
Qualcomm, a longstanding in-
novator that has lately been
beset by challenges from cus-
tomers, primarily Apple Inc.,
and regulators world-wide.
Broadcom and Qualcomm
have been locked in a standoff
since early November, when
Mr. Tan bid $105 billion to
combine the two companies,
an offer Qualcomm rejected. A
merger would be the largest-
ever tech tie-up, giving Broad-
com chips that connect smart-
phones to cellular networks
and forging the No. 3 semicon-
ductor company by revenue.
Qualcomm shareholders are
Corp., recently expressed con-
cern that Broadcom might
trim Qualcomm’s R&D spend-
ing on fundamental cellular
technology. Broadcom’s op-
tions are either to raise Qual-
comm’s prices or cut its costs,
a Vivo executive said.
In his dozen years as CEO,
Mr. Tan has spent six times as
much on acquisitions as on
R&D, while in that period
Qualcomm spent nowhere near
as much on acquisition as on
R&D, according to data from
Broadcom, Qualcomm and S&P
Global Market Intelligence. In
the past 12 months, Broadcom
spent 19% of revenue on R&D,
while Qualcomm spent 25%.
Mr. Tan has said he has
heard from many Qualcomm
customers who support his
proposed merger. He said he
believes he spends more than
necessary to maintain leader-
ship in his core “franchises.”
“Frankly, we overinvest to en-
sure we are way ahead of
No. 2 or No. 3,” he said.
Some former Broadcom em-
ployees worried Mr. Tan’s
strategy would prove unsus-
tainable in the long run. One
former executive said his tar-
gets’ R&D investments, made
before being acquired by
Broadcom, often take years to
bear fruit—so if Broadcom
doesn’t continue to invest at
the same level, it must keep
buying ever-larger companies
to achieve its target margins.
Mr. Tan said he acquires
only companies that offer op-
portunities to drive growth
and profit.
Broadcom is “as innovative
as the next guy,” he said. “It’s
great to innovate—I have full
respect for that—but it’s also
great to get a return on all the
innovation and all the invest-
ment you make.”
Unremitting Drive,
Often in His Tesla
A relentless drive to build
Broadcom Ltd. leaves Chief Ex-
ecutive Hock Tan with little
room for anything else, accord-
ing to friends and associates,
who say he has a taste for
richly marbled Wagyu beef and
high-performance cars.
He commutes to the semi-
conductor company’s offices in
San Jose, Calif., from San Ma-
teo, Calif., in a Tesla, usually
leaving his Aston Martin in the
garage.
Mr. Tan, who came to the
U.S. from Malaysia in 1971 at
age 18, held senior executive
roles at technology and other
companies before he was
named CEO of Avago in 2006.
Since then, he has built Broad-
com’s portfolio of smartphone
and networking chips through
a nearly $50 billion shopping
spree for a dozen companies
with as many divestments.
He owns a 0.026% equity
stake in Broadcom valued at
$28.1 million, according to S&P
Global Market Intelligence.
Mr. Tan also has the right
to exercise options to purchase
more than 2.4 million shares
by mid-March, according to a
recent Securities and Exchange
Commission filing, worth hun-
dreds of millions of dollars.
Syed Ali, CEO of chip
maker Cavium Inc., which both
competes and collaborates
with Broadcom, lauded Mr. Tan
for his rapid-fire decision mak-
ing and command of opera-
tional details. “I hate compet-
ing against him,” Mr. Ali said.

his former employees or cur-
rent customers of his latest
deal target, the chip maker
Qualcomm Inc.—particularly
those who think he skimps on
research and development.
In an interview with The
ADVANCED
set to vote on Broadcom-nomi-
nated directors at Qualcomm’s
annual meeting in March.
The companies take mark-
edly different approaches to
the chip business. Qualcomm,
a San Diego smartphone spe-

HEARING AID
cialist, is working to expand
into laptops, servers and new
Broadcom fields such as virtual reality. It
CEO Hock Tan was first to dedicate comput-
faces criticism ing power to artificial intelli-

TECHNOLOGY
that he gence in mobile processors
skimps on and has played a central role
research and in forming the next-generation

.
development. cellular standard known as 5G.

Wall Street Journal, Mr. Tan
defended the methods he used
to transform a company once
valued at $2.7 billion, Avago
Technologies Ltd., into the
$105 billion juggernaut known
ly
Its proposed purchase of NXP
Semiconductors NV, which it
expects to complete this year,
would open a path into the on
market for self-driving cars.
Mr. Tan, on the other hand,
views Broadcom as a high-per-
formance chassis into which
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 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.

B6 | Friday, January 26, 2018 * *** THE WALL STREET JOURNAL.

EARNINGS

Airlines Unsettle Investors Fiat Chrysler Looks

To Pass Ford in Profit
Strong profit reports
fail to ease concerns BY CHESTER DAWSON and is up 37% so far this year
about rising costs while Ford’s has dropped
DETROIT—Fiat Chrysler nearly 7%. Shares of Fiat
and overexpansion Automobiles NV said Thurs- Chrysler rose less than 1% to
day it nearly doubled its earn- $24.33 on Thursday.
BY SUSAN CAREY ings in the latest quarter, mov- Ford, with sales of 6.6 mil-
ing the auto maker closer to lion vehicles globally last year
Tax cuts and buoyant de- its ambitious growth targets and a stock-market value of
mand led U.S. airlines to and surpassing the profitabil- $45.8 billion, is still bigger
strong fourth-quarter profits, ity at rival Ford Motor Co. than Fiat Chrysler, which
but investors are looking The strong results are a shipped 4.7 million vehicles
warily at plans to add flights sign of the company’s revival last year and has a market
while costs are on the rise. after emerging from bank- capitalization of $38.5 billion.
JOHN GASTALDO/ZUMA PRESS

American Airlines Group ruptcy almost a decade ago Fiat Chrysler’s revenue in
Inc. intends to expand capac- and the merger with Fiat un- North America, the auto
ity by as much as 3% in 2018 der the Italian auto maker’s maker’s largest market, fell 5%
by adding service to smaller chief executive, Sergio Mar- in the fourth quarter to €16.8
markets and increasing flights chionne. billion, but its adjusted oper-
to existing destinations. Mr. Marchionne, who plans ating profit margin in the re-
“We’re making existing assets to step down early next year, gion rose to 8%, up from 7.1% a
stronger,” Chief Executive said he expects Fiat Chrysler year earlier thanks to demand
Doug Parker said Thursday. Carriers are benefiting from robust travel demand but also face rising fuel and labor costs. will meet its profit and debt for lucrative Jeeps and Ram
Airlines shares have targets for 2018 and continue trucks.
slumped after United Conti- 35%. Southwest, the nation’s to perform well under his yet- Fiat Chrysler’s market
nental Holdings Inc. on Rough Ride fourth-largest carrier by traf- to-be-named successor. share in the U.S. shrank to
Wednesday outlined plans to Despite strong fourth-quarter profits at U.S. airlines, investors are fic, reported a $1.4 billion non- “FCA is positioned to be a 10.8%, from 11.7% a year before
boost capacity by up to 6% in wary of plans to boost capacity. cash credit that reduced its top performer,” he said on a and 13.3% in the same quarter
each of the next three years. deferred tax liability. conference call with financial of 2016. That reflects a move
Asked about investor con- 20% Chief Executive Gary Kelly analysts, adding that the com-
cerns, Mr. Parker defended the said the tax cut will make it pany will lay out new goals for

6.4%
Share performance,
industry strategy of using big- year-to-date easier for Southwest to curb the next four years on June 1.
ger route network to grab costs and execute its growth Fiat Chrysler’s fourth-quar-
10
market share. “Growing out plan. “I realize there’s angst ter net profit rose 97% from a
hubs is just a continuation and American
among some about the growth year earlier to €804 million
perhaps the final phase of [a] Airlines rate in the industry,” Mr. Kelly ($998 million), even as revenue The Italian-American auto
maturing business,” he said. said. “One would hope tax re- fell 3% to €28.9 billion. The maker’s profit margin for 2017
0 United
Shares in American and form is at least a floor on company said its adjusted op-
Delta Air Lines Inc.—the na- Delta travel demand. We’re hopeful erating profit, which excludes
tion’s first- and second-largest JetBlue it will be a lift.” one-time items, rose 22% to
carriers—slid more than 3% on JetBlue, the No. 6 carrier, €1.89 billion, driven by sales of to reduce lower-profit-margin

.
–10 Southwest
Thursday, as did Southwest also benefited from the revalu- Jeep sport-utility vehicles and fleet sales and to abandon

ly
Airlines Co., while United lost ation of its deferred tax liabili- Ram pickup trucks. The im- some segments such as entry-
more than 4%. The NYSE Arca Alaska Air ties. Alaska, the No. 5 airline, provement was in line with a level sedans.
Airline index declined 2.4%, reported a big income boost, FactSet consensus of analyst The company’s market
–20
losing most of its year-to-date on reflecting in part a $274 mil- forecasts. share in China, the world’s
gains in the past two days. January lion special tax benefit. Ex- That helped boost Fiat largest auto market, was just
Airlines are contending Source: FactSet THE WALL STREET JOURNAL. cluding special items, the air- Chrysler’s group profit margin 0.8%, nearly unchanged from
with higher costs as oil prices line’s results were in line with to 6.4%, above Ford’s 5% 0.9% in 2014.
have risen in recent months to higher costs in the fourth and its nonfuel unit costs expectations. global margin last year. Gen- The Italian-American auto
us l,

$70 a barrel from $50. Ameri- quarter. Excluding fuel and gained 8.1%. American and American currently isn’t a eral Motors Co., which has yet maker’s goals for 2018 are rev-
can expects its fuel costs to be employee profit-sharing, its JetBlue have programs in cash taxpayer because it has to report its full-year results, enue of €136 billion, adjusted
al a
e
24% higher this year, a differ- unit costs jumped 4.6% from a place to cut costs over time, as $10.2 billion of federal net-loss sported a 9% profit margin profit of between €4.7 billion
ence of $1.8 billion for the big- year earlier, partly on higher does Delta. carryforwards, which allow it through three quarters. and €5.5 billion, and net indus-
gest U.S. airline. wages and tax-cut bonuses Even as costs rise, strong to reduce its tax liabilities on Mr. Marchionne needled trial cash of at least €4 billion.
ci on

Nonfuel unit costs, the cost granted to its workers. The
to fly a seat a mile, are also on airline said Thursday it ex-
the rise. American expects pects that metric to rise just a
that metric to climb as much half percentage point to 1.5%
as 5% in the current quarter, in the current quarter.
er rs
demand and higher fares are
bolstering airlines’ top-line re-
sults. American on Thursday
said its revenue swelled by
8.3% to $10.6 billion, while
future profits with past losses.
The airline said it would book
a 24% tax rate this year,
mostly noncash.
Delta and United, the third-
Ford on the call with analysts, Fiat Chrysler is in the midst
saying Fiat Chrysler is poised of rapidly expanding produc-
to beat its rival’s earnings this tion capacity for larger SUVs
year. “There’s a very strong and pickup trucks, even as it
likelihood we will outperform has canceled production of

based in part on higher pay Alaska Air Group Inc.’s
awarded to its pilots and flight overall expenses increased
attendants last year. The com- 40% in the fourth quarter, al-
pany expects that growth in though its nonfuel unit cost
m e
Southwest’s climbed by 3.9% largest airline, also employ Ford in terms of operating smaller vehicles such as the
to $5.27 billion. net-loss carryforwards to re- earnings in 2018,” he said. Dodge Dart, Chrysler 200 and
U.S. airlines in their quar- duce their tax liabilities. Both On Wednesday, Ford posted Jeep Patriot. Finance chief
terly reports said they bene- have reported fourth-quarter a 19% decline in fourth-quarter Richard Palmer told analysts

nonfuel unit costs to ease over rose just 2.2%. JetBlue Air- fited from changes to U.S. tax results that beat expectations. operating income to $1.7 billion. that increasing light-truck
the remainder of 2018. ways Corp. said its overall ex- law, including the reduction in —Doug Cameron Fiat Chrysler’s share price output is critical for meeting
Southwest also battled penses rose more than 16% the corporate rate to 21% from contributed to this article. has surged in recent months, the full-year financial goals.
m rp

EARNINGS
WATCH SALES
co Fo

Continued from page B1

LVMH would benefit in the long term
from the new, lower U.S. corpo-
Big Tax Effect Likely rate tax rate, a greater ability to
For Conglomerate access overseas cash and a more
level playing field between it
The new U.S. tax law will and foreign competitors. Cater-
have a “fairly significant effect” pillar said it expected an effec-
on luxury conglomerate LVMH tive tax rate of 24% this year,
Möet Hennessy Louis Vuitton down from 28% in 2017.
SE, its chief financial officer said. Mr. Halverson said in an in-
A bit less than 15% of the terview the company wasn’t
company’s taxable income comes planning to alter its tax-reduc-
n-

from the U.S., which will be taxed tion plan involving a Swiss sub-
at the new lower rate of 21%, sidiary as a result of the tax law.
CFO Jean-Jacques Guiony said. Federal agents raided Caterpil-
The company reported €42.6 bil- lar’s headquarters and two other
no

lion ($52.9 billion) of revenue in locations last year in a probe fo-

2017 and €5.13 billion in net profit. cused on taxes and exports. The
—Matthew Dalton company hasn’t been accused of
wrongdoing and has said it be-
DEFENSE lieves its tax position is correct.
Asked Thursday whether the
Contractors to Raise new tax law would help resolve
Capital Expenditures Caterpillar’s tax dispute, Chief
Executive Jim Umpleby said:
MIKE KANE/BLOOMBERG NEWS

Northrop Grumman Corp. “It’s an ongoing discussion with

forecasts sales growth of more the government. We’re cooper-
than 4% this year to $27 billion, ating, and we hope to get to a
and predicts a 19.5% tax rate will resolution in an expeditious
help earnings-per-share guidance manner.”
handily beat expectations. Caterpillar had $16 billion in
Standing out for the defense overseas profit at the end of
group is capital expenditure, 2016. Mr. Halverson suggested
which Northrop will boost to $1 The Starbucks Reserve Roastery and Tasting Room in Seattle. Starbucks posted a 2% rise in same-store sales in the first quarter. potential uses of repatriated
billion this year while Raytheon cash include funding the com-

Starbucks Misses Revenue Target

Co. is raising its spending by 50%, pany’s business as well as share
albeit for one year only. General buybacks and paying dividends.
Dynamics Corp. is also increasing Under Mr. Umpleby, Caterpil-
its investment spending, and that lar has shifted its focus to prof-
will be an item to watch when BY JULIE JARGON Starbucks said it added 1.4 same-store sales for the quar- Starbucks’s per-share earn- itable growth, rather than sim-
Lockheed Martin Corp. and Boe- AND AISHA AL-MUSLIM million active Starbucks Re- ter, with a 3.2% increase in the ings got a 79-cent boost from ply increasing revenue, and
ing Co. report next week. wards members in the U.S. in Americas. its move to acquire the re- placed less emphasis on short-
—Doug Cameron Starbucks Corp.’s domestic the quarter, bringing the total Mr. Johnson said same- maining 50% stake in its East term results. Caterpillar re-
business is struggling despite up 11% year over year to 14.2 store sales in the U.S. took a China joint venture. ported a 15% operating margin
SKY signs that the broader econ- million. The company has been hit in the quarter in part be- Overall, Starbucks reported in 2017, up from 5% the previous
omy is strengthening. trying to use the program, mo- cause of holiday merchandise a profit of $2.2 billion, or $1.57 year.
Higher Costs Look Like other food-and-bever- bile ordering and digital mar- a share, compared with $751.8 Overall for the fourth quarter,
Possible for a Buyer age retailers, Starbucks has ex- keting to draw customers in million, or 51 cents a share, in Caterpillar reported a loss of
perienced slowing sales in the more often. “Our ability to the year-ago period. Excluding $1.3 billion, or $2.18 a share,
A buyer of Sky PLC could U.S. as the coffee market has reach a larger percentage of
The company said it items such as a tax benefit and compared with a loss of $1.17
face higher costs as the satellite grown crowded. customers with mobile is a big expects slow traffic to proceeds from the sale of its billion, or $2 a share, a year ear-
broadcaster prepares its latest Starbucks said it expects opportunity,” Mr. Johnson said Tazo brand to Unilever, Star- lier. On an adjusted basis, which
bid for U.K. Premier League tele- the resulting slow traffic to ex- in an interview.
extend into its fiscal bucks earned 58 cents a share, strips out the impact of the tax
vision rights, said British finan- tend into its fiscal second The chain is also trying to second quarter. beating expectations by 1 cent. charge and other factors, the
cial firm Hargreaves Lansdown. quarter. draw in people during the Revenue rose 6% to $6.1 bil- company earned $2.16 a share,
Sky said first-half pretax Chief Executive Kevin John- slower afternoon period with lion. higher than analyst expecta-
profit rose 28% as it awaits U.K. son said the company is trying discounted items and promo- The company said that the tions.
regulators to decide whether the to broaden its customer base tions. sales that fell short of expecta- majority of savings from a Revenue rose 35% in the
bid by 21st Century Fox Inc. for by opening up mobile ordering Starbucks posted a 2% rise tions. lower corporate tax rate will quarter to $12.9 billion. Analysts
the rest of its shares can proceed. and payment to people who in same-store sales in its home The bright spot in the quar- go to the bottom line. The expected $11.98 billion. In 2017,
21st Century Fox and News aren’t part of its loyalty pro- market and globally in its first ter was China, where Star- chain plans to put some of the revenue increased to $45.5 bil-
Corp, parent of the Wall Street gram. Starting in March, any- quarter. Analysts polled by bucks stores posted 6% same- savings into increased wages lion.
Journal, share common ownership. one will be able to use the cof- FactSet expected Starbucks to store-sales growth and 30% and expanded employee bene- —Austen Hufford
—Philip Waller fee chain’s mobile app. post a 3% increase in global revenue growth. fits. contributed to this article.
 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.
THE WALL STREET JOURNAL.
CHINA DAILY
ALL YOU NEED TO KNOW
This supplement was paid for and prepared solely
by China Daily, an official publication of the People’s
Republic of China.The Wall Street Journal news
organization and advertising department were
not involved in the creation of this content.
RACE TO FITNESS
APPS TAKE OVER WHERE
THE GYM LEFT OFF, P3
NEW-AGE CHAMPIONS
IT USED TO JUST BE A PASTIME
BUT NOW IT’S A HOT SPORT, P4
From One Backside
to Another, Courtesy
of Our Panda Friends
By HUANG ZHILING
The China Conservation
and Research Center for
the Giant Panda in Sichuan
province will provide the
no
droppings and leftover food,
mainly bamboo,of its pandas
to a paper making company
to make toilet paper and
other paper products.
Under an agreement
signed recently the center
will provide droppings and
excess bamboo free from its
three bases, in the Wolong
National Nature Reserve
and two Sichuan cities,
Dujiangyan and Ya’an, to
Sichuan Qianwei Fengsheng
Paper Co.
The center provides about
25 kilograms of bamboo
to each adult panda every
day. Of that, the bear will
eat about 11 kilograms, the
most delicious parts. The
rest is chewed up during the
process.
B e c a u s e a p a n d a ’s
digestive function is not
good, about 10 kilograms
will pass through the body
to become droppings that
consist mainly of undigested
bamboo, said Zhang Hemin,
executive director of the
center.
About seven months ago
the center began providing
p a n d a d ro p p i n g s a n d
bamboo leftovers to the
paper company so it could
experiment. The price for
the paper is hefty: A box of
tissue paper, for example, is
expected to cost about 43
yuan ($6.50).
us l,
al a
e
ci on
er rs
m e
m rp
co Fo
The center is home to
270 pandas. In the past,
n-
after keepers cleared all
the droppings and uneaten
bamboo, the center would
hire workers to take the
material away. Now, the
paper company will send
people to transport the waste
every three to seven days.
90
percent
proportion of 11 kilograms of
bamboo consumed by pandas
that becomes droppings
In 2007 the Chengdu
Research Base for Giant
Panda Breeding in Sichuan
was the first in the country
to provide free panda
droppings to a company to
make souvenirs such as fans,
notebooks and bookmarks,
hoping to dispose of the
waste of its 60 pandas.
The inspiration came
from a visit to the Chiang
Mai Zoo in Thailand that
year by Huang Xiangming,
chief of the research base’s
animal management
department. The zoo used
the droppings of a pair
of Chinese pandas from
Huang’s base to make
paper items that were
popular with visitors.
But the company soon
gave up production because
its products did not sell well
at the Chengdu base, said Pu
Anning, chief of the base’s
general office.
China Watch materials are distributed by China Daily Distribution Corp., on behalf of China Daily Beijing, China.
Additional information is on file with the Department of Justice, Washington, D.C.
NY
PAID ADVERTISEMENT
A Chinese technician checks trains that were put into operation in Llavallol, Buenos Aires in June. Chinese and foreign businesses will benefit
from a more open and transparent economy as it helps trade and investment grow. MARTIN ZABALA / XINHUA
Economy on Course
As reform continues, China is well on its way to meeting targets for 2020
on GDP, per capita income and erasing poverty. Andrew Moody reports
C ly
hina is set to continue
steady growth this year
on a n d i s o n co u rse to
become a “moderately
well-off society” by 2020,
according to experts.
The economy is expected to grow by
6.4% over the year, according to a World
Bank forecast on Dec. 19.
China’s year-on-year GDP growth
reached 6.9% in 2017, up from 6.7% in
2016, marking the first acceleration since
2011,the National Bureau of Statistics said
onJan.18.The Chinese economy has been
stable and improving and its performance
is better than expected, said Ning Jizhe,
head of the bureau, in a statement.
The main worry this year will be how the
global economy will react to a tightening
of monetary policy in the United States,
with the Federal Reserve expected to raise
interest rates three or even four times
during the year.
For China, hitting the 2020 target of
doubling 2010 GDP and per capita income
is an important one, since it will come in
time for the 100th anniversary of the
founding of the Communist Party of China
in 2021.
This will be the first year when economic
policy will be guided byXiJinpingThought
on Socialism with Chinese Characteristics
for a New Era.
This places emphasis on the Party’s
leadership in economic management
as well as the market’s role in resource
distribution and economic development
that benefits the population as a whole, in
addition to supply-side structural reform.
The policy goals were set out at the
Central Economic Work Conference held
in December in Beijing.
National Treasures Come to Life on Screen
By WANG KAIHAO
National Treasure has Chinese
television audiences fired up. But don’t
confuse it with the Hollywood action film
of the same name of 2004. In that film,
Nicolas Cage sneaks into museums,
steals artifacts and discovers the hidden
history of the United States going back
about 250 years.
In the Chinese variety show, producers
at China Central Television are lucky:
China has a much longer history, and
their proposal to “borrow” artifacts was
welcomed by nine top-tier museums,
which were eager to help in making their
collections come alive.
The museums that took part were the
Palace Museum in Beijing, also known
as the Forbidden City, and eight key
province-level museums.
Since its premiere on Dec. 3, the show,
which is broadcast on Sundays at 7:30
p.m., has been rated 9.1 points out of 10
on douban.com, a TV and film critic site.
In each 100-minute episode three key
exhibits from a museum are presented by
entertainment stars through short stage
dramas that depict the legends behind
the items.
Explaining how items are chosen, Yu
Lei, the director, said, “The rule is not
to choose the most precious item, but
instead the ones with the most interesting
stories.
“If people are bored, then there is
something wrong with the way we are
doing this.”
In a segment on A Panorama of Rivers
This will be the first time in
thousands of years of Chinese
history that extreme poverty has
been eliminated.”
XI JINPING
CHINESE PRESIDENT
In his New Year address, President Xi
reaffirmed his solemn commitment to
lift all of the country’s rural impoverished
people out of poverty under current
standards by 2020.
“This will be the first time in thousands
of years of Chinese history that extreme
poverty has been eliminated,” Xi said.
Louis Kuijs, Hong Kong-based head of
Asia for Oxford Economics, expects the
growth target to be set at around 6.5%
in March, but he believes there would be
benefits to setting it lower.
“If the target for growth were 6.3, or
even 6.2%, it would take off some of the
pressure,which in my view would be good.”
He believes that policy this year will
be guided by Xi’s report to the 19th CPC
National Congress in October and the new
era Xi has espoused.
“We are entering a new era and people’s
expectations are rising, so there will be a
focus on doing better in providing good
education and better health care. For
the economy to afford such fiscal outlay,
there will also have to be an emphasis
on innovation, such as the Made in China
2025 strategy and the upgrading of the
economy,” he said.
Sword of Goujian from the Spring and
Autumn Period (770-476 B.C.) at Hubei
Museum. JIANG DONG / CHINA DAILY
and Mountains, a well-known Chinese
painting now housed in the Palace
Museum,the actor Li Chen plays Emperor
Huizong of the Northern Song Dynasty
(960-1127).
Historical records show Wang Ximeng,
the man behind the painting, was a
student at the royal painting academy
who failed to produce satisfactory work.
But Huizong realized his potential and
under his tutelage the 18-year-old genius
completed this milestone in Chinese fine
art history within half a year.
Yu described the episodes as similar
to docudramas, with elements such as
Friday, January 26, 2018 | B6A
.
Stephen Roach, senior fellow at the
Jackson Institute for Global Affairs at
Yale University, expects the Chinese
government to set a target of between 6
and 6.5% and be on course for its central
aim of doubling 2010 GDP per capita by
2020.
However,he believes the main challenge
remains the reform of State-owned
enterprises. “It is the one area of reform
in China that I am most concerned with.
I don’t believe the mixed ownership
approach (China is piloting private-
sector investment in some SOEs) is the
right solution. This is about financial
engineering when the real problem is
essentially operational efficiency.”
For Roach, the author of Unbalanced:
The Codependency of America and
China, the main global risk this year is
the U.S. economy, with the potential of
equity markets responding badly to the
expected interest rate increases by the
Federal Reserve.
Zhu Ning, Oceanwide professor of
finance at Tsinghua University and author
of China’s Guaranteed Bubble, believes
stronger-than-expected growth last year
was supported by the boom in the housing
market in 2016, which saw prices soar in
Shanghai, Beijing and other major cities
by more than 20%.
“There was a wealth effect from this,and
that is why I expect growth to gradually
come down the stairs in 2018.”
He expects the government to set a
target of around 6.5%, but he believes
therearestillfinancialrisksintheeconomy
and the risk that asset bubbles may burst,
particularly in the housing sector.
SEE “COMMODITIES” ON P2
dialogue that are fictionalized and story
lines based on historical information.
“These cultural relics are like aged
people: They have so much to tell us.”
Choosing the right performer for each
item is itself a fine art, Yu said. They are
called the “guardians of the relics.”
Duan Yihong, an actor known for
his portrayals of subtle emotion, was
chosen to play a sword spirit who has a
long monologue. The sword belonged
to Goujian, a king in the Spring and
Autumn Period (770-476 B.C.), who was
humiliated before defeating his adversary.
“Despite being big shots,the celebrities
are humble,” Yu said. “They carefully
study their scripts.” .
In the episodes, experts also speak
about the artifacts. Ordinary people are
invited on stage to tell stories linked to
such relics.
“When people see cultural relics in this
lively ways they feel history,” said Shan
Jixiang, director of the Palace Museum.
Yan Jingming, vice-chairman of the
China Writers Association, said National
Treasure has been lauded because of
its mixture of traditional and modern
culture.
“Knowledge, entertainment, taste and
an accessible approach have been put
together in one show,”Yan said.
“Cultural relics are given unique
characteristics in the stories. That’s how
we revitalize cultural heritage and begin
a dialogue between the past and today.
“Our cultural self-confidence does
not fade away. A show like this kindles
people’s pride in their heritage.”
 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.
B6B | Friday, January 26, 2018
2 | China
From left: Xiao Han explains the layout of Yikoudao village using a scale model installed in his office; Deng Zaiquan, a villager who plans to relocate to downtown Tongren, makes chicha, a type of Chinese liquor, with
his wife; Zhu Aiyong and his wife clean their roast fish restaurant, which the couple opened in Tongren after relocating from Yikoudao. PHOTOS BY YANG JUN / CHINA DAILY
A Positive Move for Upwardly Mobile
Y
ikoudao’s villagers sing
a traditional song about
leaving for the nearest
settlement at sunrise and
arriving at sunset.
The song survives, but its lyrics no
longer apply.
Yikoudao’s name means machete,
reflecting the shape of the sheer karst
cliff beneath the settlement in Yanhe
Tujia autonomous county, Guizhou
province.
The village’s limestone“blade”cuts
up to 3,840 feet at its apex.
Until recently, transport in Guizhou
was less a challenge of distances than
of heights.
Stone soars to slice the province
into pieces, long standing in the way
of progress.
But a photo collage on the wall of
Yang Cuihong’s apartment in the city
ofTongren,about 150 miles away,and
to which she has relocated, serves
as a portrait of how her life has been
transformed since she left Yikoudao
in June.
Onepicture shows the 37-year-old’s
family in front of the home they left.
Another shows her family and
other farmers hiking over earthen
roads with sacks of belongings slung
over their shoulders as they trekked
to their new, modern dwellings in
Tongren.
Another shows her family smiling
on the couch above which the collage
now hangs.
Yang is one of 913 people who have
relocated to Tongren from one of the
poorest villages in one of China’s
poorest provinces.
The government has provided
villagers from two local counties with
free apartments — about 24 square
yards per occupant — including
furniture and appliances.It also offers
vocational training to enable farmers
to work in skilled trades.
Yang was paid 1,500 yuan ($230)
a month as a cleaner after arriving
in the city in the summer. The
government later helped her find a
new job doing quality control for a
local tobacco company that pays
2,000 yuan a month as a base salary
and performance-based bonuses.
“We had hardly anything to spend
no
Commodities: News Digest
Recovery
expected
FROM PAGE 1
Michael Power, strategist for
Investec Asset Management
based in Cape Town, South
Africa, expects China to be able
to achieve an average of 6%
growth up to 2030, putting it on
course to be the world’s largest
economy.
“This is a distinct possibility.
I expect it to be higher in the
shorter term and lower in the
longer term,” he said.
He believes the strength
of China’s economy remains
important for commodities on
which many African economies
still depend, and he expects
them to continue their recovery
in 2018.
Power said that as China
enters a new era, it is seen as
a development role model by a
number of African countries.
This year is important for China
in that it is the 40th anniversary
of the launch of reform and
opening-up in 1978.
China’s opening up to the
outside world is seen by those
close to China as one of the
momentous events in world
history, eventually delivering 700
million people out of poverty.
Villagers in one of China’s poorest provinces are finding fortune
in the city. Gao Anming, Erik Nilsson and Yang Wanli report
on
us l,
al a
e
ci on
Xiao Han (fourth from left), a senior official, chats with Deng Zaifa (fourth from right), a resident of Yikoudao village, and other
representatives about the local government’s efforts to relocate residents to urbanized areas.
er rs
in Yikoudao,” Yang said. “It was really
hard to make money from farming,
m e
andweearnedjustenoughtosurvive.”
So she and her husband alternately
m rp
worked in other places or stayed to
look after their three children.
Yang attended primary school
for only two years. She can read but
“can’t really write,” she said.
Her husband returns from working
co Fo
in Zhejiang province once a year,
usually for Spring Festival.
Her daughter Zhu Hailu, 17, has
adjusted well since the relocation,
Yang said.
“Her classmates and teachers like
her. It was difficult to understand the
other kids’ accents at first, she said,
but young people learn fast. She
had no problem making friends. She
would come home right after school
in the first few months. But now she
stays out shopping with the other
n-
girls.”
Zhu is a year behind in school
Zoo opens with VR magic
Visitors are able to see prehistoric
creatures of any zoo in the world by
using the virtual reality equipment of
a special VR zoo recently completed
in Guangzhou, Guangdong province.
The zoo, created by Time Network,
a local high-tech firm that boasts
scientists from the United States and
Britain, as well as developers, started
operations on Jan. 1.
Cities on list of best startup places
Beijing took the second spot last
yearontheSparkLabsGrouplistoftop
10 startup ecosystems in the world.
The group, a network of accelerators
and venture capital funds, takes
eight metrics into account for the
ranking: funding ecosystem and exits,
engineering talent, active mentoring,
etc.
Beijing rose from eighth place in
2016 to tie with Tel Aviv, Israel, thanks
to the growth in so-called unicorns
from nine to 25 and the capital’s
increasing talent in areas such as
artificial intelligence. Shanghai
entered the list for the first time and
was ranked seventh.
Aircraft set for certification tests
The homegrown narrow-body
jet the C919 will enter the phase of
obtaining airworthiness certification
inthecountrythisyearafterachieving
a number of milestones over the past
year, including the successful flights
of two test aircraft, among the six
planned in total. The aircraft is also
an example of how China will further
NY
PAID ADVERTISEMENT
because she grew up in the village.
“Usually, 17-year-olds are second-
year students, but she’s in her first
year,” Yang said. It took an hour to
reach the school from their home.
“The path was dangerous,” Yang
said.
In two years, Zhu will take
the national college entrance
examination and hopes eventually to
become a public servant.
Yang said she appreciates what
moving to a city has given her.
“Our home was far from the village
center, and if we got sick we had to go
to a small hospital that was an hour
away. If you were too sick to walk, a
relative or a neighbor had to carry
you.”
She is grateful for amenities such
as running water in the home, she
said.
“In the village we used to wash once
a week using a bucket.”
An elderly relative took a while to
Beauty and beast
A robot named Youyou dances as musicians perform a new year
concert with a field of begonias a colorful audience in Guangzhou,
Guangdong province, on December 27. LIU DAWEI / XINHUA
its supply-side structural reform,
promote innovation, cut overcapacity
and foster new growth drivers.
A craft master, any way you cut it
Chinese paper-cutting, which is
on the UNESCO Intangible Cultural
Heritage List, remains popular,
especially for events such as Chinese
New Year. Cao Jialian’s livestream
of paper-cutting techniques has
become popular on the internet, with
more than 500,000 tuning in. Cao,
70, of Fusong county, Jilin province,
began studying paper-cutting when
she was 5, learning from her father.
“I want more people to learn the art
and hope it will be passed on from
generation to generation,” she said.
get used to flushing toilets, she said.
Residents agree that relocation
offers a better life,but it also presents
challenges.
As part of poverty-alleviation
programs, local government officials
are helping the relocated villagers to
adapt to city life.
“It was initially hard to persuade
people to move downtown
because they’d lived in the village
for generations,” said Xiao Han, a
government official in Tongren.
“They had concerns about living in
the city.”
So village chiefs visited the eldest
member of every household to
persuade them to relocate, he said.
“Cremation is also a point of
contention,” he said. “Many villagers
prefer to be buried in hillside tombs
alongside their relatives. They fear
cremation in cities.”
Government officials also help the
migrants deal with issues such as
5G norms to be promoted abroad
China will promote the application
and implementation of national
standards including those for 5G
and smart cities in economies
along the Belt and Road routes,
under an action plan adopted by
the Standardization Administration
of China. Under the plan China will
work more closely with others on
infrastructure standardization and
support interconnection network
construction from 2018 to 2020.
Between now and 2020, China says it
will constantly enhance compatibility
of its standards with international
standards and standards of other
countries.
CHINA DAILY
THE WALL STREET JOURNAL.
CHINA DAILY
language. Relocated residents from
different settlements often do not
understand each other well, and the
government organizes events such
as dragon boat races and singing
competitions to build a shared sense
of community.
The government is considering
a plan to provide gardens in which
residents can grow crops so they do
not feel entirely uprooted from their
agrarian identities.
.
Livelihood challenges persist
ly
despite government efforts, said Zhu
Yongxue, who has served as head of
Yikoudao for nearly 30 years.
“FindingajobinTongrenisstillhard.
It’s a city, but a small one. Industry
is still developing, and people from
villages are adjusting. There are a lot
of new rules for them to follow.”
Many relocated children are still
getting used to advanced schools.
Some struggle, especially in subjects
such as English.
Still, Zhu, 55, and his colleagues
have persuaded most middle-aged
people to move.
“I’m still young in the village.
Everyone aged 20 to 40 has left.”
Tongren’s government offers
at least one job opportunity to
every household and relatively well
educated residents help farmers
adjust to relocation.
ZhuAiyong,37,a native ofYikoudao,
said relocating to Tongren offers a
better future for his children — he
has four daughters and his wife is
expecting another child — than
working outside Guizhou.
He returned from the wealthier
province of Jiangsu when he learned
of the project.
Working away from home has
expanded his world view, he said.
“Villagers just wake up and farm.All
of life is agriculture. They don’t know
anything else.”
Two of his daughters, aged 5 and
13, are in Tongren, but two others are
still in the village in the care of their
grandparents.
“I hope to bring them to the city. I
want them to have a better education
than I had. I hope they will have a
better life and enjoy opportunities
I’ve never dreamed of.”
CONTACT US
China Daily
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Beijing, China 100029
+86 (0) 10 64918366
chinawatch@chinadaily.com.cn
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© 2018 China Daily
All Rights Reserved
 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.

THE WALL STREET JOURNAL. NY Friday, January 26, 2018 | B6C

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CHINA DAILY Business | 3

Fitness Apps Get up to Speed Doors

to Open
Whether helping users to get fit at home or to compete in an online marathon,
developers do not want to skip a step in the search for profits. Ren Xiaojin reports Wider

M
obile fitness
sharing apps
are freeing users
from committing
to full-year gym
memberships
and their large up-front payments.
The biggest concerns among these
startup sharing services is how to
make profits and maintain the traffic
and equipment.
Further, the interest in fitness
has led to the development of
training apps, which now number
more than 1,000. These workout
apps can be found in various app
stores and attract users with free,
detailed tutorials on almost any
type of workout, from cardio to
muscle development. Some even
have video tutorials featuring social
media celebrities to demonstrate
the moves.
The consultancy Sootoo Research
in Beijing says a growing number of
people are working out using mobile
apps as a guide. In its mobile fitness
By WANG YANFEI
and ZHONG NAN
China will become more
accessible to foreign investors
as it looks to achieve high-
quality growth, with policy
changes in areas such as finance,
manufacturing and services,
officials said.
The government will reduce
restrictions on market access
in some areas, a Ministry of
Commerce spokesman, Gao
Feng, said last month.
T h e m i n i st r y w i l l g u i d e
provinces and cities involved in
economic pilot programs as they
overhaul regulations to introduce
a unified national negative list
due this year.
A negative list determines
s e c t o rs i n w h i c h fo re i g n
participation is prohibited or
limited.
Gao said other priorities for the
Getting fit is the name of the game in this gym in Chengdu, Sichuan province. TAO KE / FOR CHINA DAILY ministry include optimizing the

.
app report for 2016 it said that while regional distribution of foreign

37.2% chose gyms to exercise,
28.9% stay at home for various
reasons, such as avoiding city traffic.
This makes fitness instruction
apps handy tools for those who stay
at home.
The apps enable users to exercise
with guidance whenever and
ly
investment and deepening
20 yuan ($3) to 400 yuan, but selling goods, medals, sponsorships institutional innovation in pilot
Top 3 fitness sales have not been particularly and participation fees,” Liang said. free-trade zones.
app downloads on eye-catching. One top seller was a The company’s revenue exceeded
yoga mat, priced at 99 yuan. About 45 million yuan in 2016.
Unit: millions of downloads
80,000 have been sold on the app FitTime,considered a rival to Keep,
Keep 92.32 platform since 2016. has started to offer paying personal
Keep says it is generating profits trainers for its users.After buying the
us l,

wherever they want,even in the office YodoRun 89.72 and that e-commerce is an efficient course,a personal trainer is assigned
during a lunch break. way of branding. The app is just and offers tailored diet and workout The new economic
al a
e
Keep, the top free fitness app with Codoon 74.37 2 years old, and its emphasis is solutions. thought has gradually
more than 110 million registered becoming more on maintaining user One of the most popular courses formed over the past five
ci on

users in August, is designed for busy of people who loyalty by giving them a handy choice costs 998 yuan. More than 100,000
office workers with exercises that last exercised chose to to buy sports equipment.It also gives users are said to have signed up for years. Its introduction
28.9%
two to five minutes. work out at home
in 2016. By the end
users a sense of being a part of a big the online tutorial, and 30% of them means China will give
One big problem that some startup community through logoed clothes. are paying members. priority to economic
of 2017 over 100
app developers face is that many million people were “For the younger generation, More than 5,000 users pay 1,000
users choose to use online apps wearing Nike or Adidas is not a cool yuan a month, FitTime says. Thus, reforms over the coming
er rs

expected to install
because they are free. Then, as they fitness apps.
grow familiar with the exercises, they
become less dependent on the apps. From Jan. to June,
80% 80% of fitness app
They are trying to make profits
m e
thing anymore,” Wang Ning said.
“Now we prefer brands like Under
Armour. We are unsure, but we can’t
rule out the possibility of young
such business can generate more five years.”
than 5 million yuan a month in
revenue. LIU SHENGJUN
ECONOMISTATTHE FINANCIAL REFORM
“We earned 10 million yuan via the

users were aged 19 INSTITUTE OF CHINA

beyond advertising by maintaining to 35. people starting to buy Keep.” newly established online weight-loss
user loyalty amid heavy competition, However, Liang Feng, chief camp last year, accounting for 60%
m rp

Sootoo Research said.
“Most apps focus on footstep
counting and running. They are
rather similar,” Sootoo’s report said.
With the exercise habits of an
estimated 100 millions pursuing
Source: SooToo Research,
TakingData AppAnalytics
CHINA DAILY
restricted to a mobile phone’s screen.
co Fo
executive of Joyrun, one of the most
downloaded running apps in Chinese
app stores, sees things differently.
Liang has put his bet on sport itself,
in the shape of an online marathon.
After runners pay the participant
of total revenue,” said Zhu Xiaoxiao,
FitTime’s chief executive.
Zhong Bingshu, president of
Capital University of Physical
Education and Sports, expressed his
concern over this much talked-about
These efforts correspond
with the goals of reform and
opening-up set out by the Central
Economic Work Conference that
concluded on Dec. 20. The new
economic concept set out by

fitness changing, the apps need
to develop into different, specified
categories targeting different age
groups and sports varieties to
maintain users, the report said.
Neil Wang, president of the
Chinese arm of the consultancy
Frost & Sullivan, said many fitness
apps imitate each other, causing cut-
throat competition.
“The business is at a starting point.
Many users can’t tell the difference
between various apps, and the app
Fitness app users usually cannot
stomach constant pop-up ads. Too
many ads easily annoy them and
make them lose interest.”
To gain income from existing large
user bases, Keep has taken a step
into e-commerce by selling its own
designs.
“Fitness is an incremental market,”
said Wang Ning, chief executive of
Beijing Calories Technology Co. Ltd.,
which created Keep.
“The first step is workout, the
n-
fees they can start running anywhere
they like and tell others about their
performance through the app. After
completing the run, users receive a
real medal from the company so they
can take pictures and talk about their
participation, rather than a digital
icon that only shows in their phones.
For users, the medal represents
a sense of achievement, but for
the business person it shows how
important a social function is in
maintaining users and encouraging
business.
“Those apps are too similar, with
the same content and service, such
as blood pressure and heart beat
monitoring,” he said. “People are
reading it every day, but beyond the
data itself they are getting precious
little other information.”
The fitness app business is one
reflection of the Chinese sports
industry boom.
A report by Analysys, a Beijing
consultancy, said the domestic
President Xi Jinping, opening-up
will be“further expanded in scope
and level” and the “concept,
structure and layout and system
of opening up” will be further
expanded, the statement said.
The 19th CPC National Congress
in October also emphasized that
China will open up more.
To achieve its economic
goals, the country must stick
to Xi’s economic thought, the
statement said.

makers soon lose their passion to
create. Most apps end up losing
money because they don’t have
other ways of generating income
no
second is health care. We have them to take part. market for the sports industry is “The new economic thought
launched products for yoga, sports In 2016 the most successful likely to be worth more than 3 trillion has gradually formed over the
supplements, clothing and workout marathon Joyrun hosted had more yuan by 2020, with 1.5 trillion yuan past five years,” said Liu Shengjun,
equipment of our own brand.” than 450,000 people taking part. for daily exercises practiced by the an economist at the Financial

other than through membership
and advertisements. They are also
Keep sells about 50 types of
products, with prices ranging from
“Every online marathon can return
over 1 million yuan in income from
masses and the other half from
competitive sports.
Reform Institute of China.
“Its introduction means China
will give priority to economic
reforms over the coming five
years.”

Middle Class Raises Glass to U.S. Wines

By LIA ZHU
China’s growing middle class and
its taste for wine have prompted a
group of importers to pursue fine
wines from California.
Members from the Shenzhen
Wine Industry Association, which
represents more than 2,000
wine importers, recently visited
California’s wine regions, including
Sonoma and Napa counties, and the
Woodbridge winery in Lodi.
“For a long time, Californian wines
(had) a relatively low market share
(in China) because of the wineries’
insufficient understanding of the
Chinese market,” said Wu Yunping,
president of the association.
“When they were waiting for
Chinese importers to reach out to
them,they missed the opportunity to
tap into the huge potential of China’s
consumer market.”
To facilitate Californian wine
exports to China and exchanges
between Californian wineries and
Chinese importers, a liaison office
of the association was set up in
San Ramon, California, during the
delegation’s visit, and a marketing
program “Wine to China” was
launched.
It provides services such as
researching the wineries and
product information, logistics and
With the help of wine expos, Californian wines are having great success in China.
PROVIDED TO CHINA DAILY
certification for source traceability
to counteract counterfeits, the
association said.
As a result of the delegation’s visit,
Shenzhen expects to import 300
containers of Californian wines every
year over the next three years.
In recent years there has been
huge growth in the Chinese wine
market. It is now worth $11.7 billion
and is forecast to be worth $30.7
billion in three years, according to
industry data.
Shenzhen started importing wines
in 1980 and has since dominated the
country’s premium-wine importing
business.
In 2016 the city’s wine imports
ranked first in China at $679 million,
about 30% of the country’s total.
Although U.S. wines have a small
share of the Chinese market, which
is dominated by French vintages, the
Chinese have developed a taste for
U.S. wines, especially the high-end
ones, Wu said.
The next 10 years can be the
“golden decade” for China’s wine
market, as the country is expected
to become the world’s largest
wine market by 2027, driven by
the growing middle class and the
millennial generation, the primary
wine consumers in China, Wu said.
“Wine to China” is also part of
the association’s strategy to build
Shenzhen into China’s largest wine-
trade center.
“It’s well known that Californian
winesareofpremiumquality,andthey
never lack buyers,” said Stephanie
Xu, founder and president of U.S.-
Asia Innovation Gateway, a Silicon
Valley-based organization aimed at
advancing economic opportunities
between the U.S. and Asia.
“But the wineries here are excited
at the prospect of tapping into the
growing Chinese market.”
In fact, “Wine to China” was Xu’s
idea, one she came up with after
hearing U.S. delegates complaining
about wines during trips to China.
“With the help of ‘Wine to China’
the U.S.-made wines can build their
brand-recognition among Chinese
consumers and compete with other,
more established international wine
brands in the Chinese market,” she
said.
The organization has been
promoting Californian products and
services to China. Exchanges for
Californian agricultural products will
be a main aim of the organization this
year, Xu said.
China’s pledge to further
promote opening-up follow
another round of increased
foreign direct investment in
the last quarter, as it continued
to shift its focus to attract
such investment in high-end
manufacturing, services and
green industries to transform its
economy.
As China pushes for growth
relying more on domestic
consumption and less on exports,
sectors that can help the country
achieve high-quality growth are
expected to benefit from efforts
to open up further, experts said.
Feng Yaoxiang, a spokesman
for the China Council for the
Promotion of International
Trade, said companies from
developed markets have noticed
the changing trend and have
become more willing to invest
in China-based research and
development, as well as its
science and technology and
design sectors.
Granting more market access
is expected to bring great
business opportunities for
foreign firms eyeing the evolving
Chinese economy.
Gordon French, HSBC’s head
of global banking and markets
for the Asia-Pacific, said greater
access helps the company to
better deploy its strength.
Jing Shuiyu contributed to this
story.
 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.
B6D | Friday, January 26, 2018
4 | Life
No expense was spared as the Tencent-owned King
Pro League brought the curtain down on its 2017
season with a spectacular e-sports extravaganza.
PHOTOS PROVIDED TO CHINA DAILY
Inset: QGhappy team members celebrate winning
the fall season final of the 2017 King Pro League in
Shenzhen, Guangdong province, on Dec. 23.
CHINESE GAMING’S CROWNING GLORY
A
round Shenzhen
Bay Sports Center,
booming battle
drumbeats and
the deafening roar
of 11,000 psyched
fans reverberate — the sound of a
stunning Chinese success story.
The cacophony is being created
for the fall season final of the 2017
King Pro League (KPL) — an e-sports
competition based on Tencent’s
homegrown hit King of Glory, which
has taken the country by storm.
“A year ago, nobody knew if the
KPL could go this far,” said Zhang
Yijia, KPL president and general
manager of Tencent’s mobile
e-sports department, at the event
on Dec. 23.
“But since then,we have witnessed
the growth of the KPL from zero. At
the very beginning there were no
viewers. Then there were 100. Then
1,000. Now, we can hear the roar
of more than 10,000 spectators
cheering for their heroes at the
stadium.”
As well as the fans in the arena,
millions more watched online as the
QGhappy team completed a clean
sweep of the 2017 titles by beating
team XQ to win 1.2 million yuan
($182,000).
The league, established in 2016,
is yet another example of e-sports’
rapid rise and underlines the massive
popularity of King of Glory in China.
Unlike other titles that form the
basis of e-sports leagues, the mobile
multi-player online battle arena
How China’s Expanding Movie Industry Will Also Benefit U.S.
By XU FAN
As Charles H. Rivkin, the new
chairman and chief executive of
the Motion Picture Association of
no
America, prepared to visit China late
last year, he watched Wolf Warrior 2
on his flight to Beijing.
“It’s fantastic and a lot of fun,”
Rivkin said of the top-grossing movie
in China of all time. “Its box office
takings in the Chinese market alone
are extraordinary. It’s a sign of things
to come.”
Wolf Warrior 2 earned 5.68 billion
yuan ($860 million), boosting last
year’s box office to a record 55.9
billion yuan.
Though Rivkin took up his new
post only recently,he has always kept
a close eye on the Chinese movie
industry and is well aware that China
has surpassed the United States to
have the most cinema screens in the
world.
He predicts that China will overtake
the U.S. as the top movie market in
terms of box-office takings by 2020.
Homegrown King Pro League caps stunning year
with a flourish. Shi Futian reports
(MOBA) game boasts a pure Chinese
gene — it was developed here and
features characters from Chinese
history.
It has amassed 200 million
on
registered users since its launch in
2015, while the KPL’s spring season
live broadcasts were viewed a
staggering 2.68 billion times.
us l,
King of Glory has garnered
comparisons with another Tencent-
al a
e
operated MOBA title, League of
Legends, which was created by the
ci on
American developer Riot Games.
League of Legends still dominates
the MOBA market for personal
computers, but King of Glory is
blazing a trail on mobile platforms
as Chinese developers position
er rs
themselves at the forefront of
gaming’s latest revolution.
New developments in mobile
technology mean e-sports’decades-
m e
long dependence on the PC is
waning, and China is leading the way
m rp
in this shift.
“In the time of the PC game,
countries such as South Korea
and the United States were taking
the lead, and China was merely a
follower,” Zhang said.
co Fo
“However, for mobile e-sports
we are so proud that China is at
the vanguard. We went to South
Korea and held discussions with
their e-sports organizers and game
“ Eve r y t h i n g i s c h a n g i n g
n-
dramatically,” he said.
“Last quarter (In the third quarter)
China built 26 screens every single
day.Now you have more than 50,000
screens. There are only 41,000
screens in the U.S.,” he said, adding
that the construction spree is also
increasing the number of high-tech
cinemas.
Besides the figures, Rivkin also
highlights China’s efforts to fight
copyright piracy.
Among his engagements was a
meeting with Zhou Huilin, deputy
head of the National Copyright
Administration of China, who
introduced China’s annual campaign
dubbed jianwang (sword net) to
crack down on online pirates.
From 2012 to 2016, 2,756 cases
were handled and 1,193 websites
were closed down, China Press and
Publishing Journal quoted Zhou as
saying.
Last year at least 1,600 sites were
shut and 274,800 links deleted, and
more than 300 investigations were
NY
PAID ADVERTISEMENT
developers. They were surprised by
our methods of developing mobile
e-sports.
“We are taking the lead in operating
and developing mobile e-sports
globally.”
It is so much easier with mobile
devices than with PCs to engage in
multi-player competition and watch
live e-sports events.
“A single MOBA game on a PC
would normally take 40-50 minutes,
but on the mobile end the number
can be shortened to 15-20, which is
better for users.”
E-sports clubs also have much to
gain from China’s mobile boom.
“We are entering a golden era
of e-sports in China, and mobile
e-sports is a very promising new
branch of the business,” said Zhu Bo,
the founder of QGhappy.
As well as the obvious portability
advantage, Zhu believes that the
simpler logic of games on mobile
platforms means they can attract
larger user numbers than PC
versions.
“According to our data for China’s
e-sports market in 2017, the market
scale of mobile e-sports accounts
for 53.74%, surpassing the PC end,”
Zhu said.
Although the KPL is thriving, there
are fears that the short shelf life of
mobilegamesmaybeitsAchillesheel.
Piracy is the most important
thing that we can fight
together.”
CHARLES H. RIVKIN
CHAIRMAN AND CEO OF THE MOTION PICTURE
ASSOCIATION OF AMERICA
undertaken,the newspaper reported.
Commenting on China’s actions,
Rivkin said, “Piracy is the most
important thing that we can fight
together. The reason that piracy
matters so much is that I don’t think
However,Zhang is bullish about the
league’s longevity and King of Glory’s
continuing popularity.
“Ten years ago we thought the
life span of PC games would not
be long enough, but the problem is
overblown,” he said.
“ Fo r M O B A g a m e s , t h e
competitive nature can sustainably
attract fans. People will invest their
love and loyalty in different clubs
and players, just like you see in
professional soccer and basketball
leagues.”
The State General Administration
of Sport of China recognized
electronic gaming as the country’s
99th sport in 2003 and has since
organized a number of national
e-sports competitions and
exhibitions.
However, debate over whether
e-sports can be considered a sport
continues.
Leagues such as the KPLappear to
be helping the e-sports industry win
that argument.
One Chinese track-and-field star
certainly reckons e-sports is worthy
of inclusion among the traditional
sporting sphere.
“E-sports is no different to
traditional sports,” said the sprinter
Su Bingtian, who took part in a
celebrity demonstration match
before the fall final duel on Dec. 23.
enough people understand that
when pirates steal Chinese movies
or American movies, they are not
stealing from big productions or the
governments.They are stealing from
hardworking Chinese and American
citizens.”
A report the Motion Picture
Association of America issued last
month said China’s film and TV
industry sustained 4.1 million jobs in
2016.Rivkin said the figure in the U.S.
is 2 million.
“They (the people in the industry)
are hardworking people. It (piracy)
needs to be stopped. It impacts the
box office and everything. … Fighting
piracy is extremely important for
everybody who wants to create
something. Who will want to create
something if it will be stolen?”
The report by Oxford Economics,
an advisory venture of Oxford
University, which draws on figures
from the State Administration of
Press, Publication, Radio, Film and
Television, said China’s movie and
television industry made a total
THE WALL STREET JOURNAL.
CHINA DAILY
“As long as the players step into
the stadium, we are all longing to
be the champion. E-sports players
also have to make great sacrifices,
devoting their youth to training just
.
like traditional athletes.
ly
“We should treat e-sports with an
unbiased stance. I believe Chinese
e-sports have a bright future.”
Some believe such recognition
shows the industry owes a debt of
gratitude to the older generations
of gamers who toughed it out during
e-sports’ darker days.
“I remember how the last
generation of e-sports players
suffered,” said Zhang Yuchen, aka
Lao Shuai, a professional KPL player
for the e-sports club AG Super Play.
“They had no clubs, no coaches
and no Chinese-owned e-sports
leagues. All they could do was spend
their days in internet bars training
and eating instant noodles, and
we should acknowledge that they
fought for China’s glory in the foreign
e-sports leagues.”
The KPL owner Tencent has also
been trying to promote e-sports
by organizing events such as
the China-U.S. Exchange Forum
on E-sports, which took place in
September in the gaming laboratory
at the Massachusetts Institute of
Technology.
Discussing the topic “the positive
values of e-sports,” the forum
was attended by senior industry
figures, broadcasters, academics,
players, tournament organizers and
publishers.
direct contribution to Chinese gross
domestic product of 254 billion yuan
in 2016, representing 0.34% of the
Chinese economy.
China’s rapidly expanding industry
also benefits the U.S., as seven
Hollywood movies earned more in
China than they did in NorthAmerica
in 2017, Rivkin said.
Those movies were The Fate of the
Furious; Kong: Skull Island; Resident
Evil: The Final Chapter; The Mummy;
xXx: The Return of Xander Cage;
Transformers: The Last Knight; and
A Dog’s Purpose.
As for Disney’s buying large parts
of 21st Century Fox, Rivkin said
he believes the deal is indicative
of changes in the motion picture
industry and shows his job will remain
challenging.
Rivkin, who, apart from working in
the entertainment industry,was once
the U.S. ambassador to France, said
he now has his dream job, one that
combines entertainment, business
and policy — territory he is highly
familiar with.
 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.

THE WALL STREET JOURNAL. Friday, January 26, 2018 | B7

MARKETS DIGEST
EQUITIES

Dow Jones Industrial Average S&P 500 Index Nasdaq Composite Index
Last Year ago Last Year ago Last Year ago
26392.79 s 140.67, or 0.54% Trailing P/E ratio 28.03 20.85 2839.25 s 1.71, or 0.06% Trailing P/E ratio 22.85 24.71 7411.16 t 3.89, or 0.05% Trailing P/E ratio * 28.15 15.10
High, low, open and close for each P/E estimate * 19.87 17.97 High, low, open and close for each P/E estimate * 18.68 17.45 High, low, open and close for each P/E estimate * 21.17 18.85
trading day of the past three months. Dividend yield 1.98 2.38 trading day of the past three months. Dividend yield 1.82 2.15 trading day of the past three months. Dividend yield 0.99 1.17
All-time high 26392.79, 01/25/18 All-time high: 2839.25, 01/25/18 All-time high: 7460.29, 01/23/18

Current divisor 0.14523396877348

26300 2850 7400
Session high
DOWN UP 25500 2775 7200
t

Session open Close

Close Open
t

24700 2700 7000

Session low

23900 2625 6800

23100 2550 6600

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

22300 2475 6400

Bars measure the point change from session's open

21500 2400 6200
Oct. Nov. Dec. Jan. Oct. Nov. Dec. Jan. Oct. Nov. Dec. Jan.
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* 869,631,258 13,728,270
Industrial Average 26458.25 26259.72 26392.79 140.67 0.54 26392.79 19864.09 31.3 6.8 14.7 share price of $2 and minimum after-hours volume of 5,000 shares. Adv. volume* 362,186,380 4,072,794
Transportation Avg 11149.80 10972.60 11007.66 -176.74 -1.58 11373.38 8783.74 16.3 3.7 7.9 Most-active issues in late trading Decl. volume* 488,492,367 9,499,134
Utility Average 697.10 686.86 696.52 9.52 1.39 774.47 655.87 6.2 -3.7 2.8 Volume After Hours Issues traded 3,063 332
Company Symbol (000) Last Net chg % chg High Low Advances 1,353 124
Total Stock Market 29418.86 29228.47 29317.39 15.15 0.05 29338.50 23699.03 22.7 5.9 11.1
SPDR S&P 500 SPY 17,170.3 283.52 0.22 0.08 284.17 283.00 Declines 1,605 189
Barron's 400 756.80 748.37 751.24 -1.80 -0.24 756.74 606.11 22.1 5.7 11.9
Bank of America BAC 7,234.5 32.09 … unch. 32.10 32.06 Unchanged 105 19
Nasdaq Stock Market Worldpay WP 7,023.5 80.73 … unch. 80.73 80.21 New highs 265 7
Nasdaq Composite 7458.53 7388.58 7411.16 -3.89 -0.05 7460.29 5613.71 31.1 7.4 15.9 Fang Holdings ADR SFUN 5,994.2 5.33 … unch. 5.33 5.33 New lows 64 10
Nasdaq 100 6967.60 6894.84 -3.05 6963.46 5116.77 8.1 Closing tick 3 26
6916.30 -0.04 34.1 17.4 Intel INTC 5,968.1 47.05 1.75 3.86 47.88 45.22
Closing Arms† 1.22 1.30
FirstEnergy FE 4,142.6 32.09 … unch. 32.10 32.02
S&P Block trades* 7,192 114
Principal US Mega-Cap USMC 3,650.0 27.71 0.01 0.04 27.71 27.71

.
500 Index 2848.56 2830.94 2839.25 1.71 0.06 2839.25 2278.87 23.6 6.2 11.4 Nasdaq NYSE Arca
iShares MSCI Emg Markets EEM 3,376.7 51.28 -0.09 -0.18 51.55 51.27
1996.22 1979.08 -0.39 1993.88 1681.04 4.6

ly
MidCap 400 1987.35 -0.02 16.6 10.9 Total volume*2,016,441,491 293,158,028
SmallCap 600 977.20 968.91 976.56 3.60 0.37 979.19 815.62 16.0 4.3 12.6 Percentage gainers… Adv. volume* 907,192,713 103,271,543
Decl. volume*1,076,830,235 185,694,496
Other Indexes 8X8 EGHT 104.4 17.55 1.45 9.01 17.80 15.83
Issues traded 3,074 1,393
Aceto ACET 131.0 11.97 0.61 5.37 11.97 11.35
Russell 2000
NYSE Composite
Value Line
1607.79

589.15
1594.42
13555.51 13479.57 13512.66
584.07
1601.67

586.02
2.06
5.00
-0.61 -0.10
0.13
0.04
on 1610.71

588.16
1345.24
13512.66 11205.24
503.24
16.4
19.4
13.2
4.3
5.5
4.2
10.4
7.8
5.8
Maxim Integrated Products MXIM
Intel INTC
213.8
5,968.1
57.55
47.05
2.43
1.75
4.41
3.86
58.25
47.88
55.12
45.22
Advances
Declines
Unchanged
1,422
1,506
146
592
759
42
NYSE Arca Biotech 4878.19 4813.09 4873.09 37.19 0.77 4873.09 3134.03 55.0 15.4 9.7
Myomo MYO 23.7 5.12 0.19 3.85 5.13 4.81 New highs 212 358
us l,

New lows 29 43
NYSE Arca Pharma 579.48 576.10 579.33 6.00 1.05 579.33 470.36 23.2 6.3 1.8 ...And losers
Closing tick 63 43
KBW Bank 116.56 115.27 115.58 -0.57 -0.49 116.15 88.02 23.8 8.3 19.0 Starbucks SBUX 3,221.1 57.43 -3.12 -5.15 61.22 57.01 1.12 1.15
al a

Closing Arms†
e
PHLX§ Gold/Silver 92.74 89.38 89.91 -2.17 -2.36 96.72 76.42 1.9 5.4 4.7 TimkenSteel TMST 8.7 18.01 -0.89 -4.71 19.50 16.33 Block trades* 8,090 1,523
PHLX§ Oil Service 164.81 161.55 162.10 -1.08 -0.66 186.96 117.79 -13.3 8.4 -5.7 Sanchez Energy SN 13.5 5.25 -0.22 -4.02 5.62 5.25 * Primary market NYSE, NYSE American NYSE Arca only.
ci on

PHLX§ Semiconductor 1379.27 1337.62 1337.62 -23.06 -1.69 1392.86 944.28 40.8 6.7 25.3 Crocs CROX 11.7 13.27 -0.53 -3.84 14.03 13.27 †(TRIN) A comparison of the number of advancing and declining
Cboe Volatility 12.01 11.20 0.11 16.04 9.14 4.9 -11.4 issues with the volume of shares rising and falling. An
11.58 0.96 8.9 SVB Financial Group SIVB 13.8 253.29 -7.84 -3.00 265.30 245.00 Arms of less than 1 indicates buying demand; above 1

Nasdaq PHLX Sources: SIX Financial Information; WSJ Market Data Group indicates selling pressure.

International Stock Indexes Percentage Gainers... Percentage Losers

er rs

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 3306.41 5.17 0.16 7.1 Menlo Therapeutics MNLO 28.71 11.71 68.88 ... ... ... ConforMIS CFMS 1.50 -0.77 -33.92 8.61 1.45 -82.0
m e

DJ Global Index 422.82 0.52 0.12 6.4 Lightbridge LTBR 3.41 1.26 58.60 4.80 0.92 231.1 Horizon Global HZN 9.11 -3.75 -29.16 20.09 9.01 -51.4
DJ Global ex U.S. 284.98 0.56 0.20 6.8 Key Technology KTEC 26.60 8.84 49.77 27.45 11.08 118.0 Newell Brands NWL 24.81 -6.42 -20.56 55.08 23.85 -46.5
MannKind MNKD 3.80 1.11 41.26 6.96 0.67 11.8 China Customer Relations CCRC 17.21 -3.29 -16.05 23.40 11.59 -10.2
m rp

Americas DJ Americas 680.68 0.46 0.07 6.0

Brazil Sao Paulo Bovespa 83680.00 … Closed 9.5 Oragenics OGEN 2.87 0.78 37.32 8.50 0.60 -56.5 Sify Technologies ADR SIFY 2.05 -0.36 -14.94 3.15 0.69 111.3
Canada S&P/TSX Comp 16204.01 –80.20 –0.49 –0.03 Iovance Biotherapeutics IOVA 14.65 3.15 27.39 14.85 4.45 104.9 Ocular Therapeutix OCUL 5.31 -0.88 -14.22 11.79 3.30 -21.8
Mexico S&P/BMV IPC 50777.90 30.97 0.06 2.9 OpGen OPGN 6.57 1.36 26.10 32.50 3.27 -78.6 Laredo Petroleum LPI 9.89 -1.63 -14.15 15.15 9.46 -30.7
Chile Santiago IPSA 4390.48 10.04 0.23 4.3 LSI Industries LYTS 8.24 1.45 21.35 10.68 4.99 -16.9 Ballard Power Systems BLDP 3.27 -0.52 -13.72 5.94 1.84 66.0
Pacific Biosciences CA PACB 3.23 0.53 19.63 5.74 2.51 -32.4 Aspen Group ASPU 7.62 -1.19 -13.51 9.61 5.35 ...
EMEA Stoxx Europe 600 398.56 –2.23 –0.56 2.4
co Fo

TAL Education Group ADR TAL 33.56 5.05 17.71 36.16 13.12 150.9 Siebert Financial SIEB 10.12 -1.54 -13.21 21.61 2.16 237.3
Eurozone Euro Stoxx 399.93 –1.61 –0.40 3.7
Belgium Bel-20 4144.23 –2.52 –0.06 4.2 Future FinTech Group FTFT 3.80 0.51 15.50 8.00 1.30 -41.4 Argos Therapeutics ARGS 2.12 -0.30 -12.40 106.00 2.00 -97.9
France CAC 40 5481.21 –13.95 –0.25 3.2 Internet Initiative ADR IIJI 11.25 1.50 15.38 12.50 7.65 40.2 KBS Fashion Group KBSF 4.35 -0.60 -12.12 18.00 1.41 44.3
Germany DAX 13298.36 –116.38 –0.87 2.9 NuCana ADR NCNA 27.78 3.56 14.70 29.07 9.32 ... CARBO Ceramics CRR 10.22 -1.34 -11.59 16.70 5.83 -25.9
Israel Tel Aviv 1543.13 4.37 0.28 2.2 Obalon Therapeutics OBLN 4.09 0.52 14.57 13.18 3.40 -62.1 NovaGold Resources NG 3.90 -0.51 -11.56 6.21 3.35 -24.7
0.41 8.5 Biostar Pharmaceuticals BSPM 2.45 0.29 13.43 3.09 1.18 -15.5 Sears Holdings SHLD 2.78 -0.35 -11.18 14.32 2.75 -65.1
Italy FTSE MIB 23719.81 97.19
Netherlands AEX 565.07 –0.97 –0.17 3.8
Russia RTS Index 1311.21 18.89 1.46 13.6 Most Active Stocks Volume Movers Ranked by change from 65-day average*
Spain IBEX 35 10595.30 32.30 0.31 5.5
Volume % chg from Latest Session 52-Week Volume % chg from Latest Session 52-Week
Sweden SX All Share 582.44 –8.88 –1.50 2.4 Company Symbol (000) 65-day avg Close % chg High Low Company Symbol (000) 65-day avg Close % chg High Low
Switzerland Swiss Market 9482.96 –64.61 –0.68 1.1
Ford Motor F 113,894 208.2 11.57 -3.98 13.48 10.47 Franklin FTSE Japan ETF FLJP 3,278 28130 28.27 -0.28 28.47 25.46
U.K. FTSE 100 7615.84 –27.59 –0.36 –0.9
General Electric GE 92,032 -1.4 16.18 -1.58 30.59 15.80 Summit Therapeutics ADR SMMT 1,511 3985 13.78 12.86 16.86 8.80
n-

Asia-Pacific Newell Brands NWL 73,601 951.3 24.81 -20.56 55.08 23.85 Key Technology KTEC 866 3805 26.60 49.77 27.45 11.08
Australia S&P/ASX 200 6050.00 –4.70 –0.08 –0.2 SPDR S&P 500 SPY 67,177 -15.0 283.30 0.04 284.70 226.32 PS Russell MC Pure Growth PXMG 605 2814 45.94 -0.17 46.38 31.98
China Shanghai Composite 3548.31 –11.16 –0.31 7.3 VanEck Vectors Gold Miner GDX 59,469 74.2 24.13 -1.91 25.71 20.89 iSh Trea Floating Rate Bd TFLO 219 2695 50.25 -0.02 50.27 50.00
Hong Kong Hang Seng 32654.45 –304.24 –0.92 9.1 iShares MSCI Emg Markets EEM 58,152 10.9 51.37 -0.06 51.83 37.11 eHi Car Services ADR EHIC 2,883 2372 12.00 -1.40 12.50 8.89
5.9
no

India S&P BSE Sensex 36050.44 –111.20 –0.31 Bank of America BAC 54,998 -20.6 32.09 0.00 32.25 22.07 Ellsworth Growth Income ECF 384 1638 9.60 -2.04 9.88 8.39
Japan Nikkei Stock Avg 23669.49 –271.29 –1.13 4.0 Cleveland-Cliffs CLF 48,405 295.6 7.89 -5.51 12.37 5.56 Direxion Mexico Bull 3X MEXX 140 1505 26.10 -2.24 33.36 18.90
Singapore Straits Times 3572.62 –36.62 –1.01 5.0 iPath S&P 500 VIX ST Fut VXX 45,767 27.2 27.82 1.64 81.28 25.59 Franklin LibertyQ EM FLQE 300 1503 35.35 -0.23 35.59 27.75
South Korea Kospi 2562.23 24.23 0.95 3.8 ProSharesUltVIXST UVXY 43,741 47.8 10.06 3.71 108.92 8.52 iSh Fallen Angels USD Bd FALN 489 1437 27.72 -0.18 30.06 26.77
Taiwan Weighted 11165.95 13.79 0.12 4.9 * Volumes of 100,000 shares or more are rounded to the nearest thousand * Common stocks priced at $5 a share or more with an average volume over 65 trading days of at least
Sources: SIX Financial Information; WSJ Market Data Group 5,000 shares =Has traded fewer than 65 days

CREDIT MARKETS & CURRENCIES Currencies

U.S.-dollar foreign-exchange rates in late New York trading
Consumer Rates and Returns to Investor Benchmark
Treasury Yields
yield curve Forex Race US$vs, US$vs,
andtoRates
Yield maturity of current bills, Yen, euro vs. dollar; dollar vs. Country/currency
Thurs YTDchg
in US$ per US$ (%) Country/currency
Thurs YTDchg
in US$ per US$ (%)
U.S. consumer rates Selected rates notes and bonds major U.S. trading partners
Americas Europe
A consumer rate against its 5-year CDs
3.75% Argentina peso .0511 19.5707 5.2 Czech Rep. koruna .04890 20.452 –3.9
benchmark over the past year 15% Brazil real .3176 3.1486 –4.9 Denmark krone .1665 6.0048 –3.2
Bankrate.com avg†: 1.54%
3.00 Canada dollar .8080 1.2377 –1.6 Euro area euro 1.2397 .8067 –3.2
First Internet Bank of Indiana 2.53% 10
Chile peso .001667 599.80 –2.6 Hungary forint .004010 249.37
s –3.7
2.00% Indianapolis, IN 888-873-3424 Thursday Euro 1 1 unch .009878 101.24
2.25 5 Ecuador US dollar Iceland krona –2.2
Five-year CD yields t
Live Oak Bank 2.55% Mexico peso .0538 18.6022 –5.4 Norway krone .1292 7.7417 –5.7
t 1.50
Wilmington, NC 866-518-0286 1.50 0 s Uruguay peso .03510 28.4900 –1.1 Poland zloty .2992 3.3421 –3.9
One year ago
t

Yen Venezuela b. fuerte .097248 10.2830 –0.6 Russia ruble .01788 55.926 –3.0
1.00 VirtualBank 2.58% 0.75 –5 Sweden krona .1262 7.9215 –3.2
t s Asia-Pacific
Miami, FL 877-998-2265 WSJ Dollar index Switzerland franc 1.0627 .9410 –3.4
Federal-funds 0.00 –10 Australian dollar .8026 1.2460 –2.7
0.50 M.Y. Safra Bank, FSB 2.60% Turkey lira .2665 3.7525 –1.1
target rate China yuan .1581 6.3252 –2.7
1 3 6 1 2 3 5 710 30 2017 Ukraine hryvnia .0346 28.9340 2.8
New York, NY 212-652-7200 Hong Kong dollar .1279 7.8176 0.1
0.00 month(s) years UK pound 1.4139 .7073 –4.4
Connexus Credit Union 3.00% India rupee .01572 63.610 –0.4
F MAM J J A S O N D J maturity Indonesia rupiah .0000752 13306 Middle East/Africa
–1.3
2017 Wausau, WI 800-845-5025
Japan yen .009140 109.41 –2.9 Bahrain dinar 2.6535 .3769 –0.1
Sources: Ryan ALM; Tullett Prebon; WSJ Market Data Group
Kazakhstan tenge .003124 320.09 –3.8 Egypt pound .0565 17.6910 –0.5
Yield/Rate (%) 52-Week Range (%) 3-yr chg Macau pataca .1242 8.0505 0.1 Israel shekel .2946 3.3941 –2.5
Interest rate Last (l)Week ago Low 0 2 4 6 8 High (pct pts)
Malaysia ringgit .2579 3.8773 –4.5 Kuwait dinar 3.3369 .2997 –0.6
Federal-funds rate target 1.25-1.50 1.25-1.50 0.50 l 1.50 1.25 Corporate Borrowing Rates and Yields New Zealand dollar .7324 1.3654 –3.2 Oman sul rial 2.5974 .3850 0.01
Pakistan rupee .00903 110.755 0.1 Qatar rial .2726 3.669 0.6
Prime rate* 4.50 4.50 3.75 l 4.50 1.25 Yield (%) 52-Week Total Return (%)
Bond total return index Close Last Week ago High Low 52-wk 3-yr Philippines peso .0196 50.908 1.9 Saudi Arabia riyal .2666 3.7505 ...
Libor, 3-month 1.76 1.74 1.03 l 1.76 1.50 Singapore dollar .7630 1.3106 –2.0 South Africa rand .0839 11.9124 –3.6
Money market, annual yield 0.35 0.35 0.25 l 0.36 -0.07 Treasury, Ryan ALM 1445.252 2.467 2.443 2.487 1.818 1.678 0.241 South Korea won .0009380 1066.11 –0.1
Five-year CD, annual yield 1.54 1.53 1.20 l 1.54 0.08 .0065041 153.75 Close Net Chg % Chg YTD%Chg
10-yr Treasury, Ryan ALM 1699.990 2.628 2.611 2.663 2.058 1.193 –0.500 Sri Lanka rupee 0.2
30-year mortgage, fixed† 4.16 4.06 3.73 l 4.33 0.39 Taiwan dollar .03435 29.116 –1.9 WSJ Dollar Index 83.43 0.14 0.16 –2.96
DJ Corporate 379.483 3.294 3.292 3.390 2.879 5.247 2.863
Thailand baht .03179 31.460 –3.5 Sources: Tullett Prebon, WSJ Market Data Group
15-year mortgage, fixed† 3.62 3.53 2.99 l 3.62 0.55 Aggregate, Barclays Capital 1930.970 2.900 2.880 2.920 2.380 2.986 1.477 Vietnam dong .00004403 22711 ...
Jumbo mortgages, $424,100-plus† 4.47 4.45 4.21 l 4.87 0.05 High Yield 100, Merrill Lynch 2885.305 5.463 5.537 5.890 4.948 6.054 4.926
Five-year adj mortgage (ARM)† 4.20 4.26 3.20 l 4.32 0.72
Fixed-Rate MBS, Barclays 1975.230 3.140 3.090 3.140 2.660 2.206 1.453
New-car loan, 48-month 3.29 3.27 2.85 l 3.36 0.36
Bankrate.com rates based on survey of over 4,800 online banks. *Base rate posted by 70% of the nation's largest
Muni Master, Merrill 519.957 2.250 2.229 2.281 1.736 3.824 1.916 COMMODITIES
banks.† Excludes closing costs.
Sources: SIX Financial Information; WSJ Market Data Group; Bankrate.com
EMBI Global, J.P. Morgan 807.835 5.598 5.568 5.951 5.279 8.036 6.705 Commodities Thursday 52-Week YTD
Sources: J.P. Morgan; Ryan ALM; S&P Dow Jones Indices; Barclays Capital; Merrill Lynch Pricing trends on someClose
raw materials, or commodities
Net chg % Chg High Low % Chg % chg

DJ Commodity 643.88 0.19 0.03 643.88 532.01 11.48 2.96

Get real-time U.S. stock quotes and track most-active Track the Markets 199.34 -0.08 199.51 2.62

WSJ
TR/CC CRB Index -0.16 166.50 2.83
stocks, new highs/lows and mutual funds. Plus, Compare the performance of selected global stock Crude oil, $ per barrel 65.51 -0.10 -0.15 65.61 42.53 21.81 8.42
deeper money-flows data and email delivery of key indexes, bond ETFs, currencies and commodities at Natural gas, $/MMBtu 3.447 -0.062 -1.77 3.51 2.56 1.92 16.73
.COM WSJ.com/TrackTheMarkets
stock-market data. Available free at WSJMarkets.com Gold, $ per troy oz. 1362.40 6.50 0.48 1362.40 1188.10 14.54 4.29
 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.

B8 | Friday, January 26, 2018 THE WALL STREET JOURNAL.

COMMODITIES WSJ.com/commodities

Futures Contracts Open

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

Metal & Petroleum Futures July 2.928 2.963 s 2.918 2.946 .016 90,437 Milk (CME)-200,000 lbs., cents per lb. Currency Futures
Oct 2.924 2.951 s 2.910 2.937 .014 107,683 Jan 13.91 13.92 13.90 13.92 .03 3,282
Contract Open March 13.50 13.50 13.37 13.43 –.10 4,078 Japanese Yen (CME)-¥12,500,000; $ per 100¥
Open High hi lo Low Settle Chg interest Cocoa (ICE-US)-10 metric tons; $ per ton. Feb .9148 .9224 s .9132 .9151 –.0032 449
Agriculture Futures March .9172 .9242 s .9140 .9164 –.0032 245,643
Copper-High (CMX)-25,000 lbs.; $ per lb. March 1,953 1,991 1,944 1,960 5 113,337
Jan 3.2165 3.2165 3.2020 3.1990 –0.0095 270 Corn (CBT)-5,000 bu.; cents per bu. May 1,978 2,011 1,969 1,984 5 65,757
Canadian Dollar (CME)-CAD 100,000; $ per CAD
3.2300 3.2580 3.1960 3.2165 –0.0120 143,486 March 356.00 358.00 s 354.50 355.25 –1.25 797,094 Feb .8103 .8136 s .8080 .8090 –.0027 268
March Coffee (ICE-US)-37,500 lbs.; cents per lb. March .8106 .8146 s .8075 .8092 –.0027 171,047
Gold (CMX)-100 troy oz.; $ per troy oz. May 364.50 366.50 s 363.00 363.75 –1.00 284,084 March 122.70 125.50 121.70 123.65 1.15 122,714
Jan 1356.30 1356.40 1346.70 1362.40 6.50 6 Oats (CBT)-5,000 bu.; cents per bu. British Pound (CME)-£62,500; $ per £
May 125.15 127.90 124.20 126.05 1.15 60,303 Feb 1.4237 1.4343 s 1.4109 1.4132 –.0097 1,515
Feb 1357.00 1365.40 s 1341.00 1362.90 6.60 157,533 March 276.00 279.00 s 259.25 261.00 –14.50 3,669 Sugar-World (ICE-US)-112,000 lbs.; cents per lb. March 1.4245 1.4370 s 1.4107 1.4145 –.0097 234,599
April 1362.70 1370.50 s 1346.20 1368.00 6.60 304,770 May 266.50 269.50 253.00 255.25 –10.75 2,263 13.23 13.38 13.09 13.24 .08 418,950
Soybeans (CBT)-5,000 bu.; cents per bu.
March Swiss Franc (CME)-CHF 125,000; $ per CHF
June 1367.00 1375.50 s 1352.40 1373.40 6.80 64,208 May 13.38 13.52 13.26 13.42 .11 224,570 March 1.0604 1.0804 s 1.0600 1.0648 .0028 73,049
1372.10 1379.30 s 1359.50 1379.00 6.80 22,858 March 992.00 1002.00 s 987.00 992.25 … 351,722
Aug
May 1003.25 1013.25 s 998.25 1003.75 … 190,282
Sugar-Domestic (ICE-US)-112,000 lbs.; cents per lb. June 1.0723 1.0875 s 1.0680 1.0727 .0030 263
Dec 1386.60 1392.30 s 1369.40 1390.40 6.80 33,382 March 26.31 26.31 t 26.30 26.40 –.03 3,548 Australian Dollar (CME)-AUD 100,000; $ per AUD
Palladium (NYM) - 50 troy oz.; $ per troy oz. Soybean Meal (CBT)-100 tons; $ per ton. May 26.90 26.90 t 26.80 26.89 –.05 2,490 Feb .8062 .8117 s .8020 .8021 –.0055 1,365
... ... ... 1100.05 –8.95 3
March 342.00 348.50 s 336.80 340.40 –1.60 166,589 March .8049 .8118 s .8010 .8021 –.0055 140,866
Jan
May 344.50 350.60 s 339.70 343.50 –1.30 110,091
Cotton (ICE-US)-50,000 lbs.; cents per lb.
March 1105.90 1109.35 1088.50 1097.40 –8.95 34,634 March 82.28 82.85 81.77 81.88 –.39 160,281 April .8093 .8110 s .8018 .8022 –.0054 641
June 1096.00 1102.45 1082.40 1091.05 –8.50 3,430
Soybean Oil (CBT)-60,000 lbs.; cents per lb. May .8065 .8110 s .8020 .8021 –.0055 196
March 32.70 32.85 32.46 32.50 –.18 225,951 May 82.87 83.47 82.42 82.58 –.33 82,681
1093.90 1093.90 s 1077.10 1086.05 –8.35 320 June .8070 .8110 s .8011 .8022 –.0055 873
Sept
May 32.89 33.04 32.65 32.69 –.18 113,844 Orange Juice (ICE-US)-15,000 lbs.; cents per lb. Dec .8004 .8004 .8004 .8026 –.0055 287
Platinum (NYM)-50 troy oz.; $ per troy oz. Rough Rice (CBT)-2,000 cwt.; $ per cwt. March 148.25 149.75 145.10 149.65 1.70 8,085
Jan 1022.60 1022.60 s 1022.60 1029.30 16.00 5
Mexican Peso (CME)-MXN 500,000; $ per MXN
March 1213.00 1220.00 1205.00 1214.00 –2.50 7,433 May 148.00 149.85 146.45 149.80 1.45 1,808 March .05350 .05417 s .05318 .05335 –.00034 175,535
April 1020.50 1033.30 s 1011.30 1032.10 16.30 85,841 May 1236.50 1244.00 1230.50 1239.50 –2.00 1,080 June .05274 .05333 s .05237 .05253 –.00033 1,249
Silver (CMX)-5,000 troy oz.; $ per troy oz. Wheat (CBT)-5,000 bu.; cents per bu. Interest Rate Futures Euro (CME)-€125,000; $ per €
Jan 17.525 17.525 s 17.525 17.551 0.126 3 March 433.00 438.75 s 429.50 434.50 1.50 288,256 Feb 1.2421 1.2550 s 1.2383 1.2408 –.0016 3,342
March 17.555 17.705 s 17.125 17.615 0.126 142,036 May 444.75 451.25 s 442.25 447.25 1.75 114,481
Treasury Bonds (CBT)-$100,000; pts 32nds of 100% March 1.2440 1.2577 s 1.2402 1.2428 –.0017 588,845
Crude Oil, Light Sweet (NYM)-1,000 bbls.; $ per bbl. March 148-210 149-160 148-110 149-130 30.0 812,706
Wheat (KC)-5,000 bu.; cents per bu.
March 65.88 66.66 s 65.08 65.51 –0.10 642,781 June 147-210 148-120 147-180 148-120 30.0 1,519 Index Futures
March 433.00 439.25 430.00 435.00 2.00 163,761
April 65.65 66.39 s 64.96 65.37 0.01 237,963 May 447.25 453.50 444.25 449.50 2.25 70,655 Treasury Notes (CBT)-$100,000; pts 32nds of 100%
May 65.29 66.02 s 64.71 65.10 0.07 180,323 March 122-080 122-150 121-310 122-140 7.5 3,473,306 Mini DJ Industrial Average (CBT)-$5 x index
Wheat (MPLS)-5,000 bu.; cents per bu. March 26265 26437 s 26210 26376 106 159,911
June 64.79 65.52 s 64.35 64.72 0.11 301,727 March 608.00 616.00 607.75 610.25 2.25 32,048 June 121-235 122-010 121-185 121-315 8.0 26,968
June 26288 26463 s 26253 26409 101 513
Dec 61.72 62.24 s 61.49 61.82 0.19 255,769 May 618.25 627.00 618.25 620.50 1.75 14,675 5 Yr. Treasury Notes (CBT)-$100,000; pts 32nds of 100% S&P 500 Index (CME)-$250 x index
Dec'19 57.43 57.69 s 57.13 57.49 0.21 112,279 Cattle-Feeder (CME)-50,000 lbs.; cents per lb. March 115-050 115-075 114-310 115-067 2.7 3,329,082
March 2839.30 2853.60 s 2832.00 2841.20 0.20 71,353
NY Harbor ULSD (NYM)-42,000 gal.; $ per gal. Jan 148.000 148.000 147.650 147.850 –.300 1,971 June 114-245 114-315 114-245 114-305 2.7 11,044 Mini S&P 500 (CME)-$50 x index
Feb 2.1103 2.1264 s 2.1058 2.1154 .0093 44,285 March 146.650 147.300 142.425 143.925 –2.475 27,580 2 Yr. Treasury Notes (CBT)-$200,000; pts 32nds of 100% March 2840.00 2853.75 s 2830.75 2841.25 0.25 3,349,443
March 2.1081 2.1236 s 2.1014 2.1104 .0081 162,939 Cattle-Live (CME)-40,000 lbs.; cents per lb. March 106-237 106-245 106-217 106-232 –.2 1,955,535 June 2842.25 2858.25 s 2835.00 2845.50 0.25 71,851
Gasoline-NY RBOB (NYM)-42,000 gal.; $ per gal. Feb 125.525 126.025 s 122.425 122.475 –2.950 46,796 June 106-167 106-167 106-147 106-162 –.5 6,277 Mini S&P Midcap 400 (CME)-$100 x index
Feb 1.9209 1.9314 s 1.9041 1.9154 –.0010 33,852 April 125.300 126.300 s 122.275 122.600 –2.550 147,190 30 Day Federal Funds (CBT)-$5,000,000; 100 - daily avg. March 1987.60 1998.50 1978.90 1987.50 –1.10 89,891
March 1.9170 1.9260 s 1.8974 1.9089 –.0033 165,314 Hogs-Lean (CME)-40,000 lbs.; cents per lb. Jan 98.585 t 98.583
98.588 98.588 … 251,014 Mini Nasdaq 100 (CME)-$20 x index
Natural Gas (NYM)-10,000 MMBtu.; $ per MMBtu. Feb 73.325 73.725 72.150 72.475 –.450 25,098 Feb 98.575 t 98.560
98.575 98.575 –.005 262,066 March 6933.5 6987.3 s 6902.0 6931.5 .3 265,378
Feb 3.439 3.581 3.398 3.447 –.062 43,411 April 76.075 76.525 73.725 73.825 –1.875 108,805 10 Yr. Del. Int. Rate Swaps (CBT)-$100,000; pts 32nds of 100% June 6954.8 7012.0 s 6928.0 6956.5 –.3 1,796
March 3.051 3.169 s 3.045 3.099 .019 371,289 Lumber (CME)-110,000 bd. ft., $ per 1,000 bd. ft. March 95.969 96.234 95.531 96.094 .328 28,007 Mini Russell 2000 (ICE-US)-$100 x index
March 475.00 482.90 s 473.70 478.00 5.10 5,896 1 Month Libor (CME)-$3,000,000; pts of 100% March 1601.50 1612.40 1594.60 1604.30 3.10 22,987
April 2.866 2.920 s 2.860 2.901 .025 175,488
May 468.00 476.00 467.60 471.70 5.70 1,074 April 98.2350 98.2350 t 98.2350 98.2300 –.0075 8 Mini Russell 1000 (ICE-US)-$100 x index
May 2.845 2.897 s 2.843 2.880 .021 165,362 March 1575.50 1575.90 1567.40 1572.30 .80 182
Eurodollar (CME)-$1,000,000; pts of 100%
Feb 98.2125 98.2125 98.2025 98.2050 –.0075 177,150
U.S. Dollar Index (ICE-US)-$1,000 x index
March 89.10 89.42 t 88.26 89.23 .22 46,590
June 97.9500 97.9550 97.9300 97.9400 –.0050 1,398,042
Cash Prices | WSJ.com/commodities Thursday, January 25, 2018 Dec
Dec'19
97.6850 97.6950
97.4100 97.4300
t 97.6500 97.6750 –.0050 1,798,305
t 97.3700 97.4150 .0100 1,599,273
June 88.74 89.03 t 87.94 88.89 .22 1,393
Source: SIX Financial Information
These prices reflect buying and selling of a variety of actual or “physical” commodities in the marketplace—
separate from the futures price on an exchange, which reflects what the commodity might be worth in future
months.
Thursday Thursday Thursday Bonds | WSJ.com/bonds
(U.S.$ equivalent) 17.5200 SoybeanMeal,Cent IL,rail,ton48%-u 333.90
Energy
Coins,wholesale $1,000 face-a 12974 Soybeans,No.1 yllw IL-bp,u 9.5750 Tracking Bond Benchmarks
Propane,tet,Mont Belvieu-g 0.8513 Other metals Wheat,Spring14%-pro Mnpls-u 7.2775
Butane,normal,Mont Belvieu-g 0.9795 Wheat,No.2 soft red,St.Louis-bp,u 4.4050 Return on investment and spreads over Treasurys and/or yields paid to investors compared with 52-week
LBMA Platinum Price PM *1016.0
NaturalGas,HenryHub-i 3.570 Platinum,Engelhard industrial 1023.0 Wheat - Hard - KC (USDA) $ per bu-u 4.2500 highs and lows for different types of bonds
NaturalGas,TranscoZone3-i 3.510 Platinum,Engelhard fabricated 1123.0 Wheat,No.1soft white,Portld,OR-u 5.3100 Total Total
NaturalGas,TranscoZone6NY-i 3.660 return YTD total Yield (%) return YTD total Yield (%)
Palladium,Engelhard industrial 1105.0 Food
NaturalGas,PanhandleEast-i 2.760 close return (%) Index Latest Low High close return (%) Index Latest Low High
Palladium,Engelhard fabricated 1205.0
NaturalGas,Opal-i 2.940 Aluminum, LME, $ per metric ton *2216.0 Beef,carcass equiv. index Mortgage-Backed Bloomberg Barclays
Broad Market Bloomberg Barclays

.
NaturalGas,MarcellusNE PA-i 2.570 Copper,Comex spot 3.1990
choice 1-3,600-900 lbs.-u 189.13
NaturalGas,HaynesvilleN.LA-i 3.360 select 1-3,600-900 lbs.-u 183.27 1930.97 -0.8 U.S. Aggregate 2.900 2.380 2.920 1975.23 -0.7 Mortgage-Backed 3.140 2.660 3.140
75.1

ly
Iron Ore, 62% Fe CFR China-s
Coal,C.Aplc.,12500Btu,1.2SO2-r,w 58.500 Broilers, National comp wghtd-u,w 0.9462 1942.42 -0.6 Ginnie Mae (GNMA) 3.100 2.630 3.110
Shredded Scrap, US Midwest-s,m 339 U.S. Corporate Indexes Bloomberg Barclays
Coal,PwdrRvrBsn,8800Btu,0.8SO2-r,w 12.250 Butter,AA Chicago 2.1225
Steel, HRC USA, FOB Midwest Mill-s 695
Cheddar cheese,bbl,Chicago 132.00 2783.47 -0.6 U.S. Corporate 3.390 3.030 3.500 1158.17 -0.7 Fannie mae (FNMA) 3.140 2.670 3.150
Metals Fibers and Textiles Cheddar cheese,blk,Chicago 147.50
on 2607.82 -0.5 Intermediate 3.050 2.530 3.090 1784.05 -0.7 Freddie Mac (FHLMC) 3.160 2.680 3.160
Gold, per troy oz Milk,Nonfat dry,Chicago lb. 71.75
Burlap,10-oz,40-inch NY yd-n,w 0.6450 -0.4
Engelhard industrial 1363.96
Cocoa,Ivory Coast-w n.a. 3906.48 -0.9 Long term 4.100 3.990 4.680 519.96 Muni Master 2.250 1.736 2.281
Cotton,1 1/16 std lw-mdMphs-u 0.8088 Coffee,Brazilian,Comp 1.2262
Engelhard fabricated 1466.26 Cotlook 'A' Index-t *92.85 565.49 -0.7 Double-A-rated 2.890 2.470 2.920 362.54 -0.8 7-12 year 2.330 1.744 2.394
Coffee,Colombian, NY 1.4364
Handy & Harman base 1354.95 Hides,hvy native steers piece fob-u 67.000 Eggs,large white,Chicago-u 1.1450 721.29 -0.4 Triple-B-rated 3.650 3.340 3.830 408.81 -0.8 12-22 year 2.619 2.213 2.872
Handy & Harman fabricated 1503.99
us l,

Wool,64s,staple,Terr del-u,w n.a. Flour,hard winter KC 15.25

LBMA Gold Price AM *1350.50 High Yield Bonds Merrill Lynch 396.74 -0.9 22-plus year 2.981 2.716 3.449
Grains and Feeds Hams,17-20 lbs,Mid-US fob-u 0.70
LBMA Gold Price PM *1353.70
Hogs,Iowa-So. Minnesota-u 71.27 421.44 0.9 High Yield Constrained 5.673 5.373 6.189 Global Government J.P. Morgan†
Krugerrand,wholesale-e 1418.46
al a

Barley,top-quality Mnpls-u 4.85

e
Pork bellies,12-14 lb MidUS-u n.a.
Maple Leaf-e 1432.10 Bran,wheat middlings, KC-u 130 429.97 2.3 Triple-C-rated 9.911 9.584 11.091 540.79 -0.6 Global Government 1.550 1.300 1.560
Pork loins,13-19 lb MidUS-u 0.8279
American Eagle-e 1432.10
Corn,No. 2 yellow,Cent IL-bp,u 3.3300 Steers,Tex.-Okla. Choice-u n.a. 2885.31 0.8 High Yield 100 5.463 4.948 5.890 749.81 -0.7 Canada 2.210 1.570 2.240
1652.45
ci on

Mexican peso-e
Corn gluten feed,Midwest-u,w 103.1 Steers,feeder,Okla. City-u,w 167.00
Austria crown-e 1339.89 382.19 0.9 Global High Yield Constrained 5.046 4.934 5.738 370.14 -0.1 EMU§ 1.176 0.956 1.363
Corn gluten meal,Midwest-u,w 469.2 Fats and Oils
Austria phil-e 1432.10
Silver, troy oz.
Cottonseed meal-u,w 283 308.53 0.7 Europe High Yield Constrained 2.323 1.897 3.196 706.35 -0.6 France 0.950 0.690 1.210
Hominy feed,Cent IL-u,w 98 Corn oil,crude wet/dry mill-u,w 30.2900
Engelhard industrial 17.5200 Grease,choice white,Chicago-h 0.2250 U.S Agency Bloomberg Barclays 503.81 -0.7 Germany 0.620 0.210 0.620
Engelhard fabricated 21.0240 Meat-bonemeal,50% pro Mnpls-u,w 218
Lard,Chicago-u 0.3100 1630.18 -0.5 U.S Agency 2.360 1.690 2.380 287.98 -0.2 Japan 0.420 0.340 0.460
Handy & Harman base 17.5650 Oats,No.2 milling,Mnpls-u 2.8850
Soybean oil,crude;Centl IL-u 0.3110
er rs

Handy & Harman fabricated 21.9560 Rice, Long Grain Milled, No. 2 AR-u,w 25.00 1458.12 -0.3 10-20 years 2.240 1.490 2.260 556.30 -0.8 Netherlands 0.730 0.390 0.760
Tallow,bleach;Chicago-h 0.2600
LBMA spot price £12.2900 Sorghum,(Milo) No.2 Gulf-u 8.1300 Tallow,edible,Chicago-u n.a.
3336.79 -1.5 20-plus years 3.090 2.730 3.410 916.15 -1.6 U.K. 1.660 1.340 1.790
KEY TO CODES: A=ask; B=bid; BP=country elevator bids to producers; C=corrected; E=Manfra,Tordella & Brooks; G=ICE; H=Hurley Brokerage; I=Natural Gas Intelligence; 2452.83 -0.5 Yankee 3.100 2.610 3.130 807.83 -0.01 Emerging Markets ** 5.598 5.279 5.951
M=monthly; N=nominal; n.a.=not quoted or not available; R=SNL Energy; S=Platts-TSI; T=Cotlook Limited; U=USDA; W=weekly, Z=not quoted. *Data as of 1/24
m e

*Constrained indexes limit individual issuer concentrations to 2%; the High Yield 100 are the 100 largest bonds † In local currency § Euro-zone bonds
Source: WSJ Market Data Group
** EMBI Global Index Sources: Merrill Lynch; Bloomberg Barclays; J.P.Morgan
m rp

Global Government Bonds: Mapping Yields

Borrowing Benchmarks | WSJ.com/bonds Yields and spreads over or under U.S. Treasurys on benchmark two-year and 10-year government bonds in
Money Rates January 25, 2018 selected other countries; arrows indicate whether the yield rose(s) or fell (t) in the latest session
Key annual interest rates paid to borrow or lend money in U.S. and international markets. Rates below Country/ Yield (%) Spread Under/Over U.S. Treasurys, in basis points
Coupon (%) Maturity, in years Latest(l) 0 20 40 60 80 100 120 Previous Month ago Year ago Latest Prev Year ago
co Fo

are a guide to general levels but don’t always represent actual transactions.
2.000 U.S. 2 2.080 s l 2.080 1.895 1.235
Week —52-WEEK— Week —52-WEEK— 2.250 10 2.622 t l 2.649 2.484 2.515
Inflation Latest ago High Low Latest ago High Low 4.500 Australia 2 2.079 t l 2.090 1.986 1.848 -0.1 1.0 61.3
Dec. index Chg From (%)
level Nov. '17 Dec. '16 Britain 0.50 0.50 0.50 0.25 13 weeks 1.430 1.430 1.445 0.505 2.750 10 2.833 s l 2.814 2.700 2.737 21.1 16.5 22.2
Australia 1.50 1.50 1.50 1.50 26 weeks 1.615 1.600 1.615 0.600
1.000 France 2 -0.434 s l -0.456 -0.505 -0.479 -251.3 -253.6 -171.5
U.S. consumer price index
Overnight repurchase Secondary market 0.750 10 0.889 s l 0.867 0.738 0.975 -173.3 -178.2 -154.0
All items 246.524 –0.06 2.1
U.S. 1.51 1.52 1.62 0.48
Core 253.558 0.03 1.8 Fannie Mae 0.000 Germany 2 -0.567 s l -0.586 -0.649 -0.655 -264.6 -266.6 -189.0
U.S. government rates 30-year mortgage yields 0.500 10 0.609 s l 0.587 0.419 0.467 -201.3 -206.2 -204.8
International rates
30 days 3.747 3.707 3.865 3.253 0.050 Italy 2 -0.220 t l -0.220 -0.214 -0.081 -230.0 -131.7
Discount -230.0
Week 52-Week 60 days 3.776 3.736 3.899 3.281
2.00 2.00 2.00 1.25 2.050 10 1.961 s l 1.913 1.914 2.107 -66.1 -73.6 -40.7
Latest ago High Low
Other short-term rates 0.100 Japan 2 -0.131 s l -0.136 -0.142 -0.215 -221.0 -221.6 -145.0
Federal funds
Prime rates 0.100 10 0.085 s l 0.079 0.044 0.070 -253.7 -256.9 -244.5
Effective rate 1.4200 1.4200 1.4400 0.6000 Week 52-Week
n-

U.S. 4.50 4.50 4.50 3.75 High 1.6500 1.5625 1.6500 0.8125 Latest ago high low
2.750 Spain 2 -0.396 s l -0.405 -0.384 -0.283 -247.6 -248.5 -151.9
Canada 3.45 3.20 3.45 2.70 Low 1.3000 1.3000 1.4100 0.4500
Japan 1.475 1.475 1.475 1.475 Bid 1.4100 1.4200 1.4200 0.5600 Call money 1.450 10 1.410 s l 1.364 1.468 1.541 -121.2 -128.5 -97.4
Offer 1.4300 1.4300 1.4400 0.5800 3.25 3.25 3.25 2.50 1.750 U.K. 2 0.602 s l 0.592 0.451 0.164 -147.8 -148.8 -107.2
Policy Rates
no

Euro zone 0.00 0.00 0.00 0.00 Treasury bill auction Commercial paper (AA financial) 4.250 10 1.417 s l 1.410 1.265 1.567 -120.6 -123.9 -94.7
Switzerland 0.50 0.50 0.50 0.50 4 weeks 1.230 1.295 1.300 0.400 90 days 1.71 1.66 1.71 0.72 Source: Tullett Prebon

Libor Corporate Debt

in that same company’s share price.
Exchange-Traded Portfolios | WSJ.com/ETFresearch One month
Three month
1.56693
1.76031
1.56118
1.74470
1.56900
1.76031
0.77000
1.03372
Investment-grade spreads that tightened the most…
Six month 1.94969 1.92550 1.94969 1.33489
Spread*, in basis points Stock Performance
Largest 100 exchange-traded funds, latest session One year 2.24063 2.22750 2.24063 1.69400 Issuer Symbol Coupon (%) Maturity Current One-day change Last week Close ($) % chg
Thursday, January 25, 2018 Closing Chg YTD Euro Libor Morgan Stanley MS 2.650 Jan. 27, ’20 18 –35 54 56.81 –0.75
ETF Symbol Price (%) (%)
Closing Chg YTD One month -0.406 -0.405 -0.383 -0.420 JPMorgan Chase JPM 7.900 April 30, ’49 –103 –24 –147 115.70 0.03
ETF Symbol Price (%) (%) iShTIPSBondETF TIP 113.44 0.19 –0.6 Three month -0.383 -0.381 -0.344 -0.387 Dow Chemical DOW 4.250 Nov. 15, ’20 28 –23 n.a. ... ...
AlerianMLPETF AMLP 11.77 0.09 9.1 iSh1-3YTreasuryBd SHY 83.68 –0.02 –0.2 Six month -0.336 -0.333 -0.240 -0.337
iSh7-10YTreasuryBd IEF 104.08 0.22 –1.4
Caterpillar Financial Services CAT 1.931 Oct. 1, ’21 33 –19 n.a. … …
CnsmrDiscSelSector XLY 107.94 –0.18 9.4 One year -0.262 -0.262 -0.095 -0.262
CnsStapleSelSector XLP 58.43 0.05 2.7 iSh20+YTreasuryBd TLT 124.05 0.82 –2.2 Ford Motor F 7.750 June 15, ’43 242 –19 n.a. 11.57 –3.98
EnSelectSectorSPDR XLE 77.09 –0.79 6.7 iShRussellMCGrowth IWP 128.69 0.01 6.7 PacifiCorp PPWLO 8.070 Sept. 9, ’22 70 –15 n.a. ... ...
Euro interbank offered rate (Euribor)
FinSelSectorSPDR XLF 29.95 –0.20 7.3 PIMCOEnhShMaturity MINT 101.68 0.03 0.1
PwrShQQQ 1 QQQ 168.35 –0.04 8.1 One month -0.369 -0.369 -0.366 -0.375 Viacom VIA 5.850 Sept. 1, ’43 218 –15 230 39.35 1.81
GuggS&P500EW RSP 106.44 –0.08 5.4
PwrShS&P500LoVol SPLV 48.87 0.68 2.4 Three month -0.327 -0.328 -0.325 -0.332 John Deere Capital DE 2.350 Jan. 8, ’21 19 –12 32 … …
HealthCareSelSect XLV 89.61 0.86 8.4
79.74 0.10 5.4 PwrShSrLoanPtf BKLN 23.18 0.09 0.6 Six month -0.278 -0.275 -0.237 -0.278
IndSelSectorSPDR
iShIntermCredBd
XLI
CIU 108.74 0.14 –0.4 SPDR BlmBarcHYBd JNK 36.89 –0.11 0.5 One year -0.191 -0.191 -0.100 -0.194 …And spreads that widened the most
SPDR Gold GLD 127.97 –0.67 3.5
iSh1-3YCreditBond CSJ 104.37 0.02 –0.2
Value 52-Week Standard Chartered STANLN 2.250 April 17, ’20 67 28 68 ... ...
iShCoreMSCIEAFE IEFA 70.20 –0.40 6.2 SchwabIntEquity SCHF 36.03 –0.36 5.8
SchwabUS BrdMkt SCHB 68.36 0.01 6.0 Latest Traded High Low General Electric GE 5.000 Jan. 21, ’49 188 14 161 16.18 –1.58
iShCoreMSCIEmgMk IEMG 61.85 –0.13 8.7
67.26 –0.37 6.6
SchwabUS Div SCHD 53.67 0.17 4.9 Ford Motor Credit F 2.343 Nov. 2, ’20 83 13 76 … …
iShCoreMSCITotInt IXUS DTCC GCF Repo Index
iShCoreS&P500 IVV 285.35 0.04 6.1
SchwabUS LC SCHX 67.69 0.04 6.1 Royal Bank of Canada RY 2.150 Oct. 26, ’20 46 13 46 85.45 –0.60
SPDR DJIA Tr DIA 263.75 0.45 6.6 Treasury 1.449 25.700 1.836 0.489
iShCoreS&P MC IJH 198.36 –0.08 4.5
SPDR S&PMdCpTr MDY 360.93 –0.07 4.5 MBS 1.498 111.740 1.852 0.496 Bnp Paribas* BNP 6.750 March 14, ’49 158 12 152 ... ...
iShCoreS&P SC IJR 80.09 0.28 4.3
SPDR S&P 500 SPY 283.30 0.04 6.2 Royal Bank of Scotland RBS 7.500 Aug. 10, ’49 176 12 156 8.63 0.35
iShS&PTotlUSStkMkt ITOT 64.73 0.02 5.9 Open Implied
iShCoreUSAggBd AGG 108.57 0.26 –0.7
SPDR S&P Div SDY 97.74 0.72 3.5
Settle Change Interest Rate
Newell Brands NWL 4.200 April 1, ’26 121 11 113 24.81 –20.56
iShSelectDividend DVY 101.37 0.32 2.9
TechSelectSector XLK 68.11 –0.18 6.5 American Express AXP 3.000 Oct. 30, ’24 78 8 77 99.69 0.39
UtilitiesSelSector XLU 51.01 1.55 –3.2 DTCC GCF Repo Index Futures
iShEdgeMSCIMinEAFE EFAV 75.88 –0.20 4.0
iShEdgeMSCIMinUSA USMV 54.85 0.49 3.9
VanEckGoldMiner GDX 24.13 –1.91 3.8
Treasury Jan 98.540 unch. 3576 1.460 High-yield issues with the biggest price increases…
VangdInfoTech VGT 176.40 –0.26 7.1
iShGoldTr IAU 12.94 –0.84 3.4 Treasury Feb 98.555 -0.010 3143 1.445 Bond Price as % of face value Stock Performance
VangdSC Val VBR 137.79 –0.01 3.8
iShiBoxx$InvGrCpBd LQD 120.71 0.51 –0.7 Treasury Mar 98.415 -0.005 449 1.585 Issuer Symbol Coupon (%) Maturity Current One-day change Last week Close ($) % chg
VangdDivApp VIG 107.81 0.46 5.7
iShiBoxx$HYCpBd HYG 87.69 –0.07 0.5
VangdFTSEDevMk VEA 47.48 –0.36 5.8 EP Energy EPENEG 6.375 June 15, ’23 69.000 2.53 65.250 ... ...
iShJPMUSDEmgBd EMB 115.80 0.14 –0.3
VangdFTSE EM VWO 50.31 –0.36 9.6 Weekly survey
iShMBSETF MBB 105.81 0.15 –0.7 Carlson Travel CARLTV 9.500 Dec. 15, ’24 92.500 2.50 84.500 ... ...
VangdFTSE Europe VGK 62.94 –0.41 6.4 Latest Week ago Year ago
iShMSCI ACWI ACWI 76.71 –0.09 6.4
VangdFinls VFH 74.70 –0.21 6.7
Transocean RIG 7.500 April 15, ’31 96.750 2.16 94.000 11.32 –1.57
iShMSCIBrazil EWZ 46.85 1.08 15.8
VangdFTSEAWxUS VEU 58.34 –0.36 6.6 Freddie Mac Weatherford International WFT 6.800 June 15, ’37 88.500 2.16 82.500 4.20 –1.64
iShMSCI EAFE EFA 74.59 –0.39 6.1
VangdGrowth VUG 150.62 –0.10 7.1 CHS/Community Health Systems CYH 8.000 Nov. 15, ’19 93.250 1.75 91.250 … …
iShMSCI EAFE SC SCZ 68.48 –0.41 6.2 VangdHlthCr VHT 167.48 0.83 8.7
30-year fixed 4.15 4.04 4.19
iShMSCIEmgMarkets EEM 51.37 –0.06 9.0 15-year fixed 3.62 3.49 3.40 Endo Finance ENDP 7.250 Jan. 15, ’22 89.750 1.75 90.000 … …
VangdHiDiv VYM 89.62 0.15 4.7
iShMSCIEurozone EZU 46.72 –0.23 7.7 VangdIntermBd BIV 82.96 0.18 –1.0 Five-year ARM 3.52 3.46 3.20 Mohegan Gaming & Entertainment MOHEGN 7.875 Oct. 15, ’24 103.000 1.75 103.125 ... ...
iShMSCIJapan EWJ 64.20 –0.48 7.1 VangdIntrCorpBd VCIT 86.79 0.29 –0.7 Consolidated Communications CNSL 6.500 Oct. 1, ’22 90.250 1.25 88.250 12.59 –0.87
iShNasdaqBiotech IBB 116.63 0.63 9.2 VangdLC VV 130.21 0.04 6.2
iShNatlMuniBd MUB 110.00 0.10 –0.7 VangdMC VO 162.78 –0.06 5.2 Notes on data: …And with the biggest price decreases
iShRussell1000Gwth IWF 144.36 0.06 7.2 VangdMC Val VOE 117.01 –0.15 4.9 U.S. prime rate is the base rate on corporate
iShRussell1000 IWB 157.56 0.01 6.0 VangdREIT VNQ 79.97 –0.17 –3.6 loans posted by at least 70% of the 10 largest Sprint Capital S 8.750 March 15, ’32 119.500 –2.50 120.750 … …
iShRussell1000Val IWD 130.33 –0.02 4.8 VangdS&P500 VOO 260.33 0.05 6.1 U.S. banks, and is effective December 14, 2017. Altice Luxembourg S.A. ATCNA 7.750 May 15, ’22 96.500 –1.75 96.750 ... ...
Other prime rates aren’t directly comparable;
iShRussell2000Gwth IWO 196.30 0.24 5.1 VangdST Bond BSV 78.85 –0.01 –0.3
lending practices vary widely by location; Mattel MAT 6.750 Dec. 31, ’25 102.375 –1.38 99.250 16.64 –3.65
iShRussell2000 IWM 159.03 0.04 4.3 79.19 0.08 –0.1
VangdSTCpBd VCSH Discount rate is effective December 14, 2017. Yum! Brands YUM 5.350 Nov. 1, ’43 93.250 –1.00 n.a. 85.66 0.49
iShRussell2000Val IWN 129.88 –0.22 3.3 VangdSC VB 154.27 –0.03 4.4 DTCC GCF Repo Index is Depository Trust &
iShRussell3000 IWV 167.45 0.03 5.9 VangdTotalBd BND 80.95 0.27 –0.8 Clearing Corp.'s weighted average for overnight SFR S.A. SFRFP 7.375 May 1, ’26 99.470 –0.91 99.500 ... ...
iShRussellMid-Cap IWR 218.31 –0.13 4.9 VangdTotIntlBd BNDX 54.20 –0.02 –0.3 trades in applicable CUSIPs. Value traded is in CalAtlantic CAA 5.000 June 15, ’27 103.250 –0.88 104.750 61.36 –3.43
92.26 3.5 billions of U.S. dollars. Federal-funds rates are
iShRussellMCValue IWS –0.15 VangdTotIntlStk VXUS 60.57 –0.36 6.6
Tullett Prebon rates as of 5:30 p.m. ET. Futures
Wind Tre SPA WINTRE 5.000 Jan. 20, ’26 90.500 –0.88 91.000 ... ...
iShS&PMC400Growth IJK 228.77 –0.04 6.0 VangdTotalStk VTI 145.34 0.04 5.9
on the DTCC GCF Repo Index are traded on PetSmart PETM 8.875 June 1, ’25 64.438 –0.81 66.500 ... ...
iShS&P500Growth IVW 163.74 0.14 7.2 VangdTotlWrld VT 78.92 –0.15 6.3 NYSE Liffe US.
iShS&P500Value IVE 120.05 –0.09 5.1 VangdValue VTV 112.03 0.13 5.4 *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.
Sources: Federal Reserve; Bureau of Labor
iShUSPfdStk PFF 37.97 –0.05 –0.3 WisdTrEuropeHdg HEDJ 66.08 –0.32 3.7 Statistics; DTCC; SIX Financial Information; Note: Data are for the most active issue of bonds with maturities of two years or more
iShShortTreaBd SHV 110.32 0.01 0.1 WisdTrJapanHdg DXJ 61.42 –0.41 3.5 Tullett Prebon Information, Ltd. Sources: MarketAxess Corporate BondTicker; WSJ Market Data Group
 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.

THE WALL STREET JOURNAL. Friday, January 26, 2018 | B9

BIGGEST 1,000 STOCKS

Net Net Net Net Net Net Net
How to Read the Stock Tables Footnotes: Stock Sym Close Chg Stock Sym Close Chg Stock Sym Close Chg Stock Sym Close Chg Stock Sym Close Chg Stock Sym Close Chg Stock Sym Close Chg
The following explanations apply to NYSE, s-New 52-week high.
NYSE Arca, NYSE American and Nasdaq Stock t-New 52-week low. CommerceBcshrs CBSH 58.91 -0.04 FedEx FDX 268.04 -2.37 IPG Photonics IPGP 257.64 1.91 OwensCorning OC 95.76 0.16 SeattleGenetics SGEN 55.59 -0.37 TysonFoods TSN 79.80 0.02
Market listed securities. Prices are composite dd-Indicates loss in the most recent CommScope COMM 38.42 -0.24 Ferrari RACE 118.21 -0.69 IQVIA IQV 104.58 1.08 M N PG&E PCG 43.49 -0.19 SemicondctrMfg SMI 7.50 -0.15 UBS Group UBS 20.62 -0.02
s SABESP SBS 11.35 ... s FiatChrysler FCAU 24.33 0.18 IRSA Prop IRCP 56.50 1.29 PLDT PHI 29.47 0.22 SempraEnergy SRE 106.40 0.72 UDR UDR 36.73 -0.09
quotations that include primary market trades four quarters. M&T Bank MTB 187.66 -1.80
ConagraBrands CAG 38.04 0.44 FibriaCelulose FBR 16.34 -0.42 IcahnEnterprises IEP 57.94 0.09 s PNC Fin PNC 157.80 0.06 SensataTech ST 55.63 -0.49 UGI UGI 47.55 0.92
as well as trades reported by Nasdaq BX FD-First day of trading. s ConchoRscs CXO 159.79 s IDEX MGM Resorts MGM 36.81 -0.82 s ServiceCorp SCI 39.94 s US Foods USFD 33.67 0.35
-1.11 FidNatlFin FNF 41.49 0.44 IEX 140.82 2.62 s POSCO PKX 90.94 2.69 0.30
(formerly Boston), Chicago Stock Exchange, h-Does not meet continued listing s FidNatlInfo FIS 101.50 MPLX MPLX 38.86 0.02
ConocoPhillips COP 59.48 -1.01 0.94 IllinoisToolWks ITW 174.76 1.00 PPG Ind PPG 120.21 1.27 ServiceMaster SERV 52.75 -1.32 UltaBeauty ULTA 227.29 2.98
Cboe, NYSE National and Nasdaq ISE. standards s FifthThirdBncp FITB 32.84 MSCI MSCI 137.86 -0.21 s ServiceNow NOW 145.54
ConEd ED 80.38 0.96 -0.49 Illumina ILMN 243.39 0.90 PPL PPL 32.27 0.27 0.10 UltSoftware ULTI 226.40 -0.77
The list comprises the 1,000 largest lf-Late filing Macerich MAC 65.05 -2.26 s UltraparPart UGP 25.92 0.24
ConstBrands A STZ 221.31 -0.72 58.com WUBA 84.37 0.75 ImperialOil IMO 31.66 -0.88 PTC PTC 73.18 -0.24 ShawComm B SJR 21.93 -0.10
companies based on market capitalization. q-Temporary exemption from Nasdaq Macy's M 26.64 -0.61
requirements. ContinentalRscs CLR 57.07 -0.37 FirstAmerFin FAF 61.89 0.88 Incyte INCY 94.26 -1.08 s PVH PVH 152.71 1.37 SherwinWilliams SHW424.66 -4.72 UnderArmour A UAA 14.57 -0.36
Underlined quotations are those stocks with Cooper COO 243.79 4.46 FirstData FDC 18.23 0.06 Infosys INFY 18.45 -0.01 MagellanMid MMP 74.83 -0.24 s Paccar ShinhanFin SHG 48.76 -0.60 UnderArmour C UA 13.31 -0.30
t-NYSE bankruptcy PCAR 77.22 -1.07
large changes in volume compared with the Copart CPRT 44.98 0.26 FirstHorizonNatl FHN 20.15 -0.14 Ingersoll-Rand IR 91.57 -0.41 MagnaIntl MGA 58.58 -0.94 Shire SHPG144.57 -0.48 Unilever UN 57.51 -0.73
v-Trading halted on primary market. PackagingCpAm PKG 125.63 -0.57
issue’s average trading volume. Corning GLW 33.81 -0.31 FirstRepBank FRC 90.51 0.08 s Ingredion INGR 141.63 1.32 Manpower MAN 133.71 0.89 s Shopify SHOP 124.90 5.23 Unilever UL 56.72 -0.94
vj-In bankruptcy or receivership or PacWestBancorp PACW 52.85 -0.25
s CoStar CSGP 349.54 -3.26 FirstSolar FSLR 70.44 1.46 Intel INTC 45.30 -0.21 ManulifeFin MFC 21.63 -0.17 SignatureBank SBNY 155.41 0.41 UnionPacific UNP 133.60 -7.59
Boldfaced quotations highlight those issues being reorganized under the PaloAltoNtwks PANW 157.28 -1.00
s Costco COST 197.95 3.71 FirstEnergy FE 32.09 0.99 InteractiveBrkrs IBKR 63.08 -1.26 MarathonOil MRO 18.68 -0.60 SimonProperty SPG 164.20 -1.90 UnitedContinental UAL 66.08 -2.97
whose price changed by 5% or more if their Bankruptcy Code, or securities ParkHotels PK 29.58 -0.10
Coty COTY 20.25 -0.13 Fiserv FISV 140.80 0.66 ICE ICE 74.94 -0.48 MarathonPetrol MPC 71.08 -0.51 SiriusXM SIRI 5.77 0.04 UnitedMicro UMC 2.48 -0.04
previous closing price was $2 or higher. assumed by such companies. ParkerHannifin PH 207.51 -1.32
Credicorp BAP 234.42 -2.11 s FleetCorTech FLT 212.12 4.29 InterContinentl IHG 67.86 -0.82 Markel MKL 1121.85 5.09 SkechersUSA SKX 40.69 0.18 UPS B UPS 131.29 -0.40
ParsleyEnergy PE 28.90 -0.62
s CreditAcceptance CACC 365.84 9.28 Flex FLEX 18.81 -0.14 IBM IBM 165.47 0.10 MarketAxess MKTX 193.58 -2.16 Skyworks SWKS 95.05 -2.08 s UnitedRentals URI 181.91 -3.61
Paychex PAYX 68.63 0.61
Wall Street Journal stock tables reflect composite regular trading as of 4 p.m. and CreditSuisse CS 19.62 -0.02 s FlirSystems FLIR 52.23 0.39 IntlFlavors IFF 154.85 1.99 Marriott MAR 145.50 1.11 s SmithAO AOS 67.40 0.60 s US Bancorp USB 57.98 0.23
PayPal PYPL 84.34 0.63
changes in the closing prices from 4 p.m. the previous day. CrownCastle CCI 108.61 -0.98 Fluor FLR 61.22 -0.06 IntlPaper IP 63.40 -0.26 Marsh&McLen MMC 83.57 0.15 Smith&Nephew SNN 37.20 1.38 US Steel X 40.27 0.28
Pearson PSO 9.67 -0.10
CrownHoldings CCK 59.26 1.08 FomentoEconMex FMX 99.32 -0.22 Interpublic IPG 21.36 -0.46 MartinMarietta MLM 238.14 5.88 Smucker SJM 129.55 2.61 UnitedTech UTX 137.75 2.07
PembinaPipeline PBA 34.35 -0.59
Ctrip.com CTRP 45.59 0.75 FootLocker FL 52.44 0.19 Intuit INTU 167.82 0.27 MarvellTech MRVL 23.01 -0.28 Snap SNAP 13.71 -0.73 UnitedHealth UNH 245.18 0.33
Net Net s Pentair PNR 73.35 0.25
Thursday, January 25, 2018 Cullen/Frost CFR 106.69 4.42 FordMotor F 11.57 -0.48 s IntuitiveSurgical ISRG 449.81 12.33 Masco MAS 45.43 -0.48 SnapOn SNA 181.03 -1.74 UnivDisplay OLED 168.25-10.25
Stock Sym Close Chg Stock Sym Close Chg Mastercard MA 168.59 1.58 People'sUtdFin PBCT 19.91 -0.03
Net Cummins CMI 189.40 1.05 ForestCIty A FCE.A 23.69 0.01 InvitatHomes INVH 22.58 -0.01 PepsiCo PEP 120.90 -0.24 SOQUIMICH SQM 57.00 1.53 UniversalHealthB UHS 119.13 1.14
Stock Sym Close Chg Apple IonisPharma IONS 52.37 -0.97 MatchGroup MTCH 33.99 0.46
AAPL 171.11 -3.11 CBD Pao CBD 24.37 0.34 Fortinet FTNT 45.41 0.16 s PerkinElmer PKI 82.75 1.33 Sony SNE 48.40 -0.75 UnumGroup UNM 55.03 -0.93
ApplMaterials AMAT 55.76 -1.12 CBRE Group CBG 45.81 0.60 D E F Fortis FTS 35.22 0.18 IronMountain IRM 35.82 0.05 MaximIntProducts MXIM 55.12 -1.23
Perrigo PRGO 94.59 0.98 Southern SO 44.62 0.54 VEON VEON 3.91 -0.04
A B C Aptiv APTV 92.49 -1.05 CBS B CBS 59.27 0.04 DISH Network DISH 47.03 -0.70
Fortive FTV 74.81 -0.55 IsraelChemicals ICL 4.47 0.05 McCormickVtg MKC.V 105.00 5.56
PetroChina PTR 80.55 0.64 s SoCopper SCCO 50.05 0.06 VEREIT VER 7.46 0.02
FortBrandsHome FBHS 72.48 s ItauUnibanco ITUB 16.52 0.42 McCormick MKC105.09 5.00 SouthwestAir LUV 60.19 VF
AquaAmerica WTR 36.43 0.32 CBS A CBS.A 59.26 ...
DTE Energy DTE 105.96 1.53
-0.65 s PetroleoBrasil PBR 13.26 0.17 -2.02 VFC 80.94 -0.03
ABB ABB 28.28 -0.11 Aramark Franco-Nevada FNV 77.55 -0.70 McDonalds MCD 175.66 -0.46 SpectraEnerPtrs SEP 43.27 Visa V
ARMK 45.79 0.31 CDK Global CDK 74.04 0.09 DXC Tech DXC 101.86 s PetroleoBrasilA PBR.A 12.42 0.17 0.28 125.22 0.67
AECOM ACM 39.26 ...
ArcelorMittal MT 36.73 0.62 CDW CDW 75.37 0.33 s Danaher DHR 102.70
0.67
1.32
FranklinRscs BEN 45.16 -0.36 J K L McKesson MCK 175.20 0.62
Pfizer PFE 37.23 0.30 SpectrumBrands SPB 123.72 -0.32 VailResorts MTN 233.62 0.97
AES AES 11.49 0.33 ArchCapital ACGL 92.37 -1.04 CF Industries CF 40.41 -1.23 s FreeportMcM FCX 19.82 0.22 Medtronic MDT 86.82 1.06 s SpiritAeroSys SPR 100.52 0.68 Vale VALE 12.95 -0.23
Aflac AFL 89.42 0.99 ArcherDaniels ADM 42.89 0.05 s CGI Group GIB 55.04 -0.81 Darden DRI 97.86 0.31 JD.com JD 47.38 0.64 MelcoResorts MLCO 28.69 0.18 PhilipMorris PM 107.49 -3.11
s FreseniusMed FMS 56.59 0.06 Phillips66 PSX 104.17 -0.46 Splunk SPLK 91.85 -0.31 ValeantPharm VRX 19.71 -0.17
AGNC Invt AGNC 19.60 -0.12 Arconic DaVita DVA 78.96 0.32 s JPMorganChase JPM 115.70 0.03 MercadoLibre MELI 360.06 4.46
ARNC 30.47 -0.01 s CH Robinson CHRW 96.53 0.35 s Deere PilgrimPride PPC 30.24 -0.21 Sprint S 5.34 0.08 ValeroEnergy VLO 97.18 -0.48
ANGI Homesvcs ANGI 13.56 0.01 s
Ansys
AristaNetworks ANET 276.76 3.62 CIT Group CIT 51.35 -0.91 DellTechs DVMT 88.44
DE 169.13 -0.47
0.07
G H I JackHenry JKHY 125.55 0.40
JacobsEngg JEC 69.86 -0.38
Merck MRK 61.30 0.12
PinnacleFoods PF 59.25 -0.74 Square SQ 45.12 0.80 s VarianMed VAR 127.01 13.96
ANSS 159.93 -1.61 MetLife MET 54.00 -0.10 StanleyBlackDck SWK169.16 -1.43 s Vedanta VEDL 21.73 0.36
ArrowElec ARW 83.41 -1.05 CME Group CME 154.17 -0.82 DeltaAir PinnacleWest PNW 81.05 0.83
s ASML ASML 200.83 -1.42 s DAL 54.81 -1.99 GGP GGP 23.60 -0.05 JamesHardie JHX 17.11 -0.24 MettlerToledo MTD 678.05 5.36 Starbucks SBUX 60.55 -0.28 VeevaSystems VEEV 58.91 -0.30
AstraZeneca AZN 36.15 0.29 CMS Energy CMS 45.00 0.74 DentsplySirona XRAY 62.81 0.98 Gallagher AJG 65.65 0.53 JanusHenderson JHG 40.94 -0.03 PioneerNatRscs PXD 188.50 0.17
AT&T T 37.45 0.43 MichaelKors KORS 67.04 -0.23 StateStreet STT 110.33 -2.38 Ventas VTR 56.41 0.52
s AbbottLabs ABT 63.22 1.50 Athene ATH 51.54 -0.35 CNA Fin CNA 54.79 0.07 DeutscheBank DB 19.64 -0.10 Gaming&Leisure GLPI 36.53 0.27 JazzPharma JAZZ 153.12 0.26 PlainsAllAmPipe PAA 22.75 -0.09
MicroFocus MFGP 30.68 -0.13 s Statoil STO 24.26 0.04 VeriSign VRSN 115.99 0.22
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ABBV 108.30 2.79 MicrochipTech MCHP 92.48 -2.88 SteelDynamics STLD 46.35 -0.61 VeriskAnalytics VRSK 98.59 -0.41
s Abiomed AtmosEnergy ATO 82.91 0.66 CPFLEnergia CPL 12.99 0.02 s Diageo DEO 144.93 0.25 GardnerDenver GDI 35.94 -0.33 J&J JNJ 144.40 2.33 PolarisIndustries PII 135.34 0.78
ABMD 236.32 3.37 MicronTech MU 43.01 -0.07 s Verizon
Autodesk ADSK 116.87 -0.03 s CRH CRH 38.56 0.10 DiamondbkEner FANG 126.85 -3.51 Garmin GRMN 63.75 -0.46 JohnsonControls JCI 40.79 0.19 s Praxair PX 163.35 2.48 Steris STE 91.85 0.15 VZ 54.29 0.07
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Autohome ATHM 84.95 0.89 CSX CSX 56.14 -0.73 DigitalRealty DLR 111.41 0.56 Gartner IT 140.12 -0.07 s JonesLang JLL 156.38 2.79 Priceline PCLN 1949.67 -5.57
ActivisionBliz ATVI 70.82 0.74 Microsoft MSFT 92.33 0.51 s Stryker SYK 165.55 1.06 Viacom B VIAB 33.61 0.48
Autoliv ALV 136.74 -1.65 CVS Health CVS 81.58 0.66 s DiscoverFinSvcs DFS 80.30 1.56 Gazit-Globe GZT 10.64 0.15 JuniperNetworks JNPR 27.67 -0.30 PrincipalFin PFG 74.26 0.26
AcuityBrands AYI 167.07 0.18 MidAmApt MAA 94.50 -0.11 SumitomoMits SMFG 9.49 -0.03 Viacom A VIA 39.35 0.70
ADP ADP 120.63 -0.23 CabotOil COG 27.62 -0.49 DiscovComm C DISCK 24.44 -0.23 s GeneralDynamics GD 226.53 7.26 JunoTherap JUNO 85.75 -0.04 Procter&Gamble PG 88.34 0.03
Adient ADNT 72.01 -1.03 Middleby MIDD 134.49 -1.76 SunComms SUI 90.79 0.39 s Vipshop VIPS 16.83 0.39
AutoZone AZO 786.30 -7.06 CadenceDesign CDNS 44.86 -0.52 s DiscovComm B DISCB 31.75 -0.75 GeneralElec GE 16.18 -0.26 s KAR Auction KAR 54.67 0.11 Progressive PGR 55.76 0.43
AdobeSystems ADBE 197.51 -0.27 MitsubishiUFJ MTU 7.81 -0.13 SunLifeFinancial SLF 43.57 -0.46 VistraEnergy VST 19.72 0.24
Avalonbay AVB 170.18 -1.62 CaesarsEnt CZR 13.85 -0.05 DiscovComm A DISCA 25.73 -0.28 GeneralMills GIS 60.14 0.42 KB Fin KB 63.09 -0.29 Prologis PLD 64.22 -0.26
AdvanceAuto AAP 120.92 -0.07 MizuhoFin MFG 3.90 -0.02 SuncorEnergy SU 37.03 -0.23 s VMware VMW 137.63 0.56
AdvMicroDevices AMD 12.41 -0.30 Avangrid AGR 48.83 0.48 CalAtlantic CAA 61.36 -2.18 Disney s KKR PrudentialFin PRU 124.40 -0.43
DIS 110.55 0.05 GeneralMotors GM 43.16 -1.00 KKR 24.41 0.42 s MobileTeleSys MBT 11.83 0.24 SunTrustBanks STI 70.60 -0.60 Vodafone VOD 32.20 -0.17
CamdenProperty CPT 87.05 0.60 s DolbyLab
AdvSemiEngg ASX 7.10 -0.14 AveryDennison AVY 120.96 0.90 DLB 70.19 5.78 Genpact G 34.35 0.18 s KLA Tencor KLAC 113.09 -1.84 MohawkInds MHK 276.77 2.21 Prudential PUK 54.48 -0.66
Symantec SYMC 27.15 0.35 VornadoRealty VNO 72.23 -0.51
s Aegon AEG 6.94 0.01 AxaltaCoating AXTA 31.99 0.93 CampbellSoup CPB 47.46 0.36 s DollarGeneral DG 103.75 1.06 Gentex GNTX 22.88 -0.09 KT KT 15.99 -0.01 PublicServiceEnt PEG 51.12 0.70
MolsonCoors B TAP 83.79 -0.10 SynchronyFin SYF 39.58 -0.16 VoyaFinancial VOYA 53.87 -0.11
AerCap AER 54.68 0.13 BB&T BBT 54.69 -0.31 CIBC CM 98.63 -0.47 DollarTree DLTR 115.07 0.73 s GenuineParts GPC 106.31 -0.32 KSCitySouthern KSU 111.42 -1.27 t PublicStorage PSA 192.57 -2.35
MolsonCoors A TAP.A 87.00 -1.00 Synopsys SNPS 91.91 -0.93 s VulcanMatls VMC 138.54 3.05
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Mondelez MDLZ 44.47 -0.12 SynovusFin SNV 51.21 -0.46
AffiliatedMgrs AMG 211.00 -0.45 BHPBilliton BHP 48.91 -0.75 CanNaturalRes CNQ 35.95 -0.25 s Domino's DPZ 219.33 0.61 Gildan GIL 33.35 -0.37 s KeyCorp KEY 21.67 -0.06 s Monsanto MON 122.39 0.21 Qiagen QGEN 33.95 0.55
Sysco SYY 63.99 0.26 W X Y Z
s AgilentTechs A 73.86 0.28 BHPBilliton BBL 43.96 -0.56 CanPacRlwy CP 186.47 -1.23 Donaldson DCI 51.57 0.40 GileadSciences GILD 81.19 -0.11 KeysightTechs KEYS 45.74 -0.29 Qorvo QRVO 66.06 -0.84
MonsterBev MNST 67.80 -0.48
AgnicoEagle AEM 48.79 -0.33 BOK Fin BOKF 97.37 -0.56 Canon CAJ 39.38 -0.12 DouglasEmmett DEI 39.32 Qualcomm QCOM 67.42 -0.56
s AirProducts APD 174.00 3.19 s BP BP 43.74 -0.20 CapitalOne COF 104.26 -1.00 Dover DOV 104.43
0.12
-0.35
GSK GSK 38.36 -0.29
s GlobalPayments GPN 112.20 0.03
KilroyRealty KRC 71.64 0.76
KimberlyClark KMB 123.44 3.73
s Moody's MCO 162.79 0.60
QuestDiag DGX 105.15 0.53
T U V WABCO WBC 156.75
WEC Energy WEC 64.14
-0.99
0.90
MorganStanley MS 56.81 -0.43
AkamaiTech AKAM 66.87 0.85 BRF BRFS 11.68 0.15 CardinalHealth CAH 73.99 -0.70 DowDuPont DWDP 76.65 0.64 s GoDaddy GDDY 54.55 0.81 t KimcoRealty KIM 16.19 -0.14 TAL Education TAL 33.56 5.05 s WEX WEX 154.33 3.89
Mosaic MOS 26.69 -0.51
t AlaskaAir ALK 62.07 -2.62 BT Group BT 18.66 -0.09 Carlisle CSL 113.36 -2.54 DrPepperSnap DPS 95.69 -0.27 Goldcorp GG 14.73 -0.19 KinderMorgan KMI 18.82 -0.32 MotorolaSol MSI 97.68 1.84 R S TD Ameritrade AMTD 54.45 -1.32 W.P.Carey WPC 65.81 0.16
Albemarle ALB 116.90 4.50 BWX Tech BWXT 64.02 0.50 Carlyle CG 25.45 0.45 DrReddy'sLab RDY 37.61 -1.83 s GoldmanSachs GS 269.03 3.35 Knight-Swift KNX 46.31 -0.07 Mylan MYL 45.99 -0.13
RELX RENX 22.26 -0.07
TE Connectivity TEL 102.64 0.25 WPP WPP 91.94 -1.03
Alcoa AA 53.11 -0.19 Baidu BIDU 254.14 -3.82 CarMax KMX 71.54 0.59 DukeEnergy DUK 78.90 1.66 Goodyear GT 35.47 0.10 Kohl's KSS 66.79 -0.91 Telus TU 37.30 -0.16 s WPX Energy WPX 15.53 -0.23
NRG Energy NRG 27.65 0.40
RELX RELX 22.72 0.07
AlexandriaRlEst ARE 126.97 0.35 BakerHughes BHGE 32.31 -1.47 Carnival CCL 70.76 -0.41 DukeRealty DRE 26.01 -0.01 Graco GGG 48.80 -0.21 KoninklijkePhil PHG 41.42 0.18 NTTDoCoMo DCM 25.13 0.08
RPM RPM 53.41 -0.12
Ternium TX 33.48 0.21 Wabtec WAB 82.32 -0.41
AlexionPharm ALXN 124.95 -0.06 Ball BLL 39.21 0.37 Carnival CUK 70.65 -0.47 s Dunkin' DNKN 68.38 0.71 s Grainger GWW 286.44 14.47 KoreaElcPwr KEP 16.69 0.09 s TIM Part TSU 20.53 0.17 s Wal-Mart WMT 106.60 0.81
NVR NVR 3350.00-237.20
BABA 198.33 2.80 s BancoBilbaoViz BBVA 9.46 0.16 s Catalent CTLT 47.14 0.99 s ENI RSP Permian RSPP 40.74 -1.10
s Alibaba E 37.39 0.38 GreatPlainsEner GXP 31.40 0.42 KraftHeinz KHC 79.67 -0.19 NXP Semi NXPI 120.20 -0.26 TJX TJX 79.26 0.01 WalgreensBoots WBA 78.27 0.94
AlignTech ALGN 273.56 1.28 s BancodeChile BCH 103.40 -0.59 Caterpillar CAT 169.37 1.03 s EOG Rscs EOG 117.45 -1.02 Grifols GRFS 24.82 0.11 Kroger KR 30.26 0.78 RalphLauren RL 117.37 -0.37
T-MobileUS TMUS 64.39 -0.61 WasteConnections WCN 72.47 0.14
Nasdaq NDAQ 81.18 0.01
RandgoldRscs GOLD 101.20 -2.15
Alkermes ALKS 59.85 1.01 BancoMacro BMA 107.93 0.03 Cavium CAVM 88.24 -0.72 EQT EQT 58.48 -0.28 GrubHub GRUB 73.40 1.87 Kyocera KYO 68.07 -0.87 NationalGrid NGG 57.38 -0.30
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TRowePrice TROW 117.35 -0.36 WasteMgt WM 88.56 0.06
629.50 9.72 s BcoSantChile BSAC 34.61 0.12 s CboeGlobalMkts CBOE 137.16 1.59 EQT Midstream EQM 76.58 -0.03 s GpoAvalAcc AVAL 9.44 -0.01 s LATAMAirlines LTM 16.97 0.19 RaymondJames RJF 95.85 -1.05 TaiwanSemi TSM 45.10 -0.23 Waters WAT 217.21 2.91
Alleghany Y NatlOilwell NOV 37.60 -0.69
s Raytheon RTN 202.84 4.75
Allegion ALLE 85.35 -0.23 s BancoSantander SAN 7.52 0.10 Celanese A CE 112.34 2.24 E*TRADE ETFC 54.21 -0.98 GpoFinGalicia GGAL 67.19 -0.72 L Brands LB 52.35 -0.84 NatlRetailProp NNN 41.36 0.47 TakeTwoSoftware TTWO 117.20 0.96 s Watsco WSO 180.15 3.05
RealtyIncome O 54.44 0.43
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s RedHat
AllianceData ADS 252.85 -6.64 s BankofAmerica BAC 32.09 ... Cemex CX 8.26 -0.13 s EastWestBncp EWBC 68.31 -0.11 GrupoTelevisa TV 20.95 -0.09 LINE LN 44.19 -1.29 NetApp NTAP 62.49 -0.44
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BankofMontreal BMO 83.72 -0.39 CenovusEnergy CVE 10.43 -0.30 s EastmanChem EMN 100.28 1.64 HCA Healthcare HCA 92.83 1.34 LKQ LKQ 42.55 -0.32 RegencyCtrs REG 64.12 -0.18 Target TGT 76.30 -0.59 WellCareHealth WCG 216.60 0.83
AlliantEnergy LNT 40.39 0.54 Netease NTES 329.59 4.96
AllisonTransm ALSN 44.80 -0.13 BankNY Mellon BK 56.85 -0.92 Centene CNC 110.66 -0.36 s Eaton ETN 85.22 0.72 HCP HCP 24.38 0.17 L3 Tech LLL 209.20 -0.59 RegenPharm REGN 391.84 8.52 TataMotors TTM 31.04 -0.52 s WellsFargo WFC 65.65 0.17
s Netflix NFLX269.70 8.40
RegionsFin RF 19.14 -0.29
Allstate ALL 100.73 0.86 BkNovaScotia BNS 66.21 -0.14 CenterPointEner CNP 28.38 0.24 EatonVance EV 60.17 0.14 HDFC Bank HDB 106.31 -0.07 LabCpAm LH 174.71 -0.13 Neurocrine NBIX 86.91 -1.82 TechnipFMC FTI 33.99 -0.66 Welltower HCN 60.84 0.30
AllyFinancial ALLY 30.09 -0.15 BankofOzarks OZRK 51.55 -0.50 CentraisElBras EBR 6.33 0.10 eBay EBAY 40.02 0.20 HD Supply HDS 39.43 -0.12 LamResearch LRCX199.25-10.48 ReinsGrp RGA 162.02 -0.40 TeckRscsB TECK 29.09 -0.02 WestPharmSvcs WST 101.02 0.72
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RS 91.00 -0.87 TelecomArgentina TEO 38.50 -1.05 WestarEnergy WR 51.62 0.43
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t NewellBrands NWL 24.81 -6.42
Alphabet C GOOG 1170.37 6.13 s BaxterIntl BAX 71.05 0.91 CharterComms CHTR 375.14 -1.04 EdisonInt EIX 62.41 0.71 Halliburton HAL 55.20 -0.14 LasVegasSands LVS 75.36 -2.08 ResMed
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NewmontMin NEM 40.77 -0.80
RioTinto RIO 55.76 -0.39
AlticeUSA ATUS 22.38 -0.38 Berkley WRB 72.32 0.53 Chemours CC 52.79 -0.20 ElectronicArts EA 114.50 -0.16 HarleyDavidson HOG 54.70 -1.25 s Lear LEA 191.65 -0.70 s Teleflex TFX 278.15 3.07 WesternGasPtrs WES 53.43 -0.11
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s RobertHalf RHI 57.34 -0.09
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Amazon.com AMZN 1377.95 20.44 BerryGlobal BERY 59.95 0.56 CheniereEnHldgs CQH 28.96 -0.29 Enbridge ENB 38.62 -0.88 Hasbro HAS 95.55 -0.22 Lennar B LEN.B 56.18 -1.77 s RockwellCollins COL 138.56 0.71 TelekmIndonesia TLK 29.81 -0.42 WestpacBanking WBK 24.94 -0.11
s Nike NKE 67.71 -0.29
Ambev ABEV 6.82 -0.05 BestBuy BBY 76.27 -0.52 Chevron CVX 130.65 -0.74 Encana ECA 13.48 -0.26 Heico HEI 80.80 2.00 Lennar A LEN 68.47 -2.35 RogersComm B RCI 48.76 -0.64 Tenaris TS 35.82 0.03 WestRock WRK 69.09 0.34
NiSource NI 24.42 0.24
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s LibertyQVC B QVCB 27.50 0.01
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NVIDIA NVDA 236.35 0.55

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AmerisourceBrgn ABC 104.37 -0.25 BostonSci BSX 28.26 0.35 CimarexEnergy XEC 120.25 -3.98 EssexProp ESS 231.26 -0.29 HormelFoods HRL 34.59 0.20 LibertySirius C LSXMK 42.57 0.40 Sina SINA 118.47 0.45 Toro TTC 66.97 -0.14 XcelEnergy XEL 46.00 0.45
s Ametek AME 76.98 0.08 Braskem BAK 31.66 -0.33 CincinnatiFin CINF 77.22 -0.02 s EsteeLauder EL 137.17 0.92 DR Horton DHI 50.35 -1.50 LibertySirius A LSXMA 42.87 0.42 O P Q SINOPEC SHI 63.82 0.98 TorontoDomBk TD 60.18 0.16 Xerox XRX 32.38 0.02
Amgen AMGN 190.08 -0.55 BrightHorizons BFAM 97.32 0.15 s Cintas CTAS 166.58 1.60 EverestRe RE 230.93 -1.03 HostHotels HST 21.17 -0.12 LibertyProperty LPT 41.80 -0.10 SK Telecom SKM 27.85 -0.48 s Total TOT 59.10 -0.01 Xilinx XLNX 69.74 -3.74
... BrighthouseFin BHF 64.89 0.27 CiscoSystems CSCO 41.90 -0.27 EversourceEner ES 64.57 3.44 HuanengPower HNP 26.33 0.02 EliLilly LLY 85.01 0.71 OGE Energy OGE 32.30 0.17 SLGreenRealty SLG 96.49 -0.49 s TotalSystem TSS 88.28 Xylem
ci on

Amphenol APH 91.20 1.00 XYL 73.24 0.67

AnadarkoPetrol APC 61.49 0.06 Bristol-Myers BMY 63.52 -0.24 s Citigroup C 79.44 -0.01 Exelixis EXEL 30.46 -0.02 Hubbell HUBB 138.18 1.52 LincolnElectric LECO 99.82 -0.27 ONEOK OKE 60.58 -0.13 SS&C Tech SSNC 50.51 0.26 ToyotaMotor TM 138.18 -0.85 s YPF YPF 26.18 -0.09
AnalogDevices ADI 91.98 -3.36 BritishAmTob BTI 68.60 -2.45 CitizensFin CFG 46.67 -0.71 Exelon EXC 38.68 0.47 s Humana HUM 285.91 -0.41 LincolnNational LNC 83.40 0.06 s OReillyAuto ORLY 272.88 -3.05 SVB Fin SIVB 261.13 0.41 TractorSupply TSCO 78.15 -2.53 YY YY 140.39 1.47
Andeavor ANDV 115.12 -1.45 Broadcom AVGO 247.29 -9.57 s CitrixSystems CTXS 94.00 0.22 Expedia EXPE 131.11 0.68 JBHunt JBHT 123.99 -1.66 s LionsGate A LGF.A 35.34 0.46 OccidentalPetrol OXY 76.74 -0.82 s SageTherap SAGE 183.08 2.82 TransCanada TRP 46.84 -1.22 s Yandex YNDX 38.40 0.53
AndeavorLog ANDX 53.39 ... BroadridgeFinl BR 96.38 0.20 Clorox CLX 146.13 3.88 ExpeditorsIntl EXPD 66.71 -0.34 HuntingtonBcshs HBAN 16.05 -0.06 s LionsGate B LGF.B 33.32 0.18 OldDomFreight ODFL 148.66 0.36 Salesforce.com CRM 111.96 -0.89 s TransDigm TDG 306.85 2.95 YumBrands YUM 85.66 0.42
AB InBev BUD 113.68 -0.57 BrookfieldMgt BAM 41.84 -0.60 s Coca-Cola KO 47.84 0.01 ExpressScripts ESRX 80.80 -0.16 HuntingIngalls HII 241.25 3.11 LiveNationEnt LYV 45.16 0.17 Olin OLN 38.07 0.68 Sanofi SNY 44.99 0.44 s TransUnion TRU 60.48 0.41 YumChina YUMC 47.50 0.09
AnnalyCap NLY 11.02 -0.09 BrookfieldInfr BIP 42.89 -0.25 Coca-Cola Euro CCE 40.77 0.94 ExtraSpaceSt EXR 85.00 -0.54 s Huntsman HUN 35.18 0.38 s LloydsBanking LYG 4.14 -0.05 Omnicom OMC 76.68 0.10 SantanderCons SC 18.50 0.04 s Travelers TRV 148.47 0.85 ZTO Express ZTO 16.10 -0.64
AnteroMidstream AM 33.16 0.22 Brown&Brown BRO 52.97 0.08 Coca-Cola Femsa KOF 77.96 -0.83 ExxonMobil XOM 88.37 -0.16 HyattHotels H 81.40 -0.16 LockheedMartin LMT 334.72 4.23 ON Semi ON 23.82 -0.77 s Sasol SSL 38.21 1.51 s Trimble TRMB 45.07 0.24 ZayoGroup ZAYO 36.45 0.07
AnteroResources AR 19.80 -0.39 s Brown-Forman B BF.B 68.65 -0.19 Cognex CGNX 67.44 0.10 F5Networks FFIV 134.94 -7.19 s IAC/InterActive IAC 142.91 0.93 Loews L 53.15 0.11 OpenText OTEX 33.88 -0.47 Schlumberger SLB 77.33 -0.85 TurkcellIletism TKC 10.79 -0.15 ZebraTech ZBRA 123.50 0.15
er rs

s Anthem ANTM 251.35 -1.64 s Brown-Forman A BF.A 67.37 -0.36 CognizantTech CTSH 77.95 -0.50 FMC FMC 91.97 2.24 ICICI Bank IBN 11.11 0.12 s LogitechIntl LOGI 42.92 0.56 Oracle ORCL 51.60 0.15 SchwabC SCHW 54.18 -1.21 TurquoiseHill TRQ 3.23 -0.03 Zillow A ZG 44.31 0.51
Aon AON 139.55 0.72 BuckeyePtrs BPL 56.29 -0.18 Coherent COHR 272.89-11.27 Facebook FB 187.48 0.93 s IdexxLab IDXX 185.73 1.65 LogMeIn LOGM 124.45 1.70 s Orange ORAN 18.30 0.11 ScottsMiracleGro SMG 107.62 0.33 21stCenturyFoxA FOXA 38.18 0.18 Zillow C Z 44.20 0.48
Apache APA 47.45 -0.67 Bunge BG 80.00 -0.03 ColgatePalm CL 77.31 0.51 FactSet FDS 201.11 2.98 s IHSMarkit INFO 48.45 -0.23 s Lowe's LOW 106.38 -0.34 OrbitalATK OA 132.56 0.50 ScrippsNetworks SNI 88.32 ... 21stCenturyFoxB FOX 37.73 0.24 ZimmerBiomet ZBH 124.74 -0.28
ApartmtInv AIV 42.27 0.18 BurlingtonStrs BURL 126.21 0.33 Comcast A CMCSA 42.14 -0.85 s Fastenal FAST 57.10 0.24 ING Groep ING 20.28 0.06 lululemon LULU 78.62 -0.58 Orix IX 99.34 0.38 Seagate STX 53.17 0.20 Twitter TWTR 22.16 -0.21 ZionsBancorp ZION 53.02 -0.72
ApolloGlbMgmt APO 36.40 0.86 CA CA 35.13 0.23 Comerica CMA 94.70 -0.83 FederalRealty FRT 123.16 -0.06 Invesco IVZ 37.59 -0.02 s LyondellBasell LYB 120.74 1.80 s Oshkosh OSK 95.33 2.29 SealedAir SEE 49.08 0.18 TylerTech TYL 198.76 0.17 s Zoetis ZTS 79.25 0.92
m e

New Highs and Lows | WSJ.com/newhighs Stock

52-Wk %
Sym Hi/Lo Chg Stock
52-Wk %
Sym Hi/Lo Chg Stock
52-Wk %
Sym Hi/Lo Chg Stock
52-Wk %
Sym Hi/Lo Chg Stock
52-Wk %
Sym Hi/Lo Chg Stock
52-Wk %
Sym Hi/Lo Chg Stock
52-Wk %
Sym Hi/Lo Chg
m rp

GlobalPayments GPN 113.11 ... LibertyLatAmC LILAK 23.71 3.4 R1RCM RCM 5.09 3.3 StoneEnergyWt SGY.WS 8.50 2.0 UnitedStatesOilFd USO 13.30 -1.2 KimcoRealty KIM 16.06 -0.9
The following explanations apply to the New York Stock Exchange, NYSE Arca, NYSE
American and Nasdaq Stock Market stocks that hit a new 52-week intraday high or low
GoDaddy GDDY
GolarLNG PfdA GMLPP
54.83
26.38
1.5
0.2
Lightbridge LTBR
LGF.A
4.80
36.48
58.6
1.3
Rapid7
RaymondJames RJF
RPD 23.32
98.78
0.4
-1.1
Stryker
SummitMaterials SUM
SYK 165.71
33.48
0.6
1.7
US12moOilFd USL
UnivStainless USAP
22.74
24.99
-0.5
8.7
Lows KimcoRealtyPfdL KIMpL 23.57 -0.1
LionsGate A MFA Financial MFA 7.40 -1.6
in the latest session. % CHG-Daily percentage change from the previous trading session. RYN 33.52 0.5 SunHydraulics SNHY 70.31 3.6 UroGenPharma URGN 56.56 10.1 Adtran ADTN 15.85 -1.2
GoldmanSachs GS 270.50 1.3 LionsGate B LGF.B 34.41 0.5 Rayonier MercuryGeneral MCY 50.45 0.9
RTN 204.39 2.4 SunCokeEnerPtrs SXCP 21.75 1.6 VarexImaging VREX 42.75 4.2 AkariTherap AKTX 3.13 -2.1
Grainger GWW 298.15 5.3 LithiaMotors LAD 125.96 0.1 Raytheon NewellBrands NWL 23.85 -20.6
RHT 131.97 1.6 SUN 33.11 -1.7 VAR 129.05 12.3 AlaskaAir ALK 59.25 -4.1
Thursday, January 25, 2018 GpoAvalAcc AVAL 9.51 -0.1 LiveOakBcshs LOB 28.20 10.5 RedHat Sunoco VarianMed OneMadison OMAD.U 9.96 ...
RelianceSteel RS 92.64 -0.9 TIM Part TSU 20.86 0.8 Vedanta VEDL 21.99 1.7 Allstate PfdD ALLpD 26.00 ...
52-Wk % 52-Wk % 52-Wk % GTx GTXI 14.39 2.8 LloydsBanking LYG 4.21 -1.2 OrionEnergySys OESX 0.75 -1.1
RobertHalf RHI 57.69 -0.2 TeledyneTech TDY 197.53 1.3 Verizon VZ 54.77 0.1 AshfordHospPfdI AHTpI 23.65 -0.2
Stock Sym Hi/Lo Chg Stock Sym Hi/Lo Chg Stock Sym Hi/Lo Chg Haemonetic HAE 67.27 1.6 LogitechIntl LOGI 43.54 1.3 PHH PHH 9.33 -2.4
RockwellCollins COL 138.93 0.5 Teleflex TFX 281.14 1.1 VinaConcha VCO 44.61 3.7 BelFuse B BELFB 20.35 -3.9
HanoverIns THG 116.21 1.0 Lowe's LOW 108.98 -0.3 PSBusParksPfdX PSBpX 24.07 0.6
co Fo

BectonDicknsn BDX 244.34 1.6 CymaBayTherap CBAY 12.33 1.3 RoperTech ROP 279.94 0.9 TelefonicaBras VIV 16.94 1.1 Vipshop VIPS 16.85 2.4 BenchmarkElec BHE 28.45 -1.5
HartfordFinSvcsWt HIG.WS 53.51 1.0 LyondellBasell LYB 120.95 1.5 ParkCity PCYG 8.75 -0.6
Highs Bio-Techne
Biogen
TECH
BIIB
142.26
358.00
0.5
2.1
Danaher
Deere
DHR
DE
103.01
171.40
1.3
-0.3
HartfordFinl HIG 58.65 0.6 MGPIngredients MGPI 81.74 -2.6 RoyalBkScotland RBS 8.69 0.3 Terex TEX 50.17 -1.8 VirtuFinancial VIRT 19.70 ... Biocept BIOC
BluerockResREIT BRG
0.48 -12.4
8.86 -0.6
Pier 1 PIR 3.65 -1.9
HarvardBioSci HBIO 4.85 6.2 MalibuBoats MBUU 34.88 2.7 RoyalDutchA RDS.A 72.43 -0.1 TexasCapBcshs TCBI 102.90 0.7 VMware VMW 139.32 0.4 PortlandGenElec POR 41.89 1.2
AMN Healthcare AMN 52.60 2.2 CYS Invts CYS 7.29 -1.2
Blackstone BX 36.49 0.7 DelticTimber DEL 99.61 1.5 HercHoldings HRI 70.58 -2.1 Manitowoc MTW 42.47 1.8 RoyalDutchB RDS.B 74.60 ... TexasRoadhouse TXRH 59.93 2.0 VulcanMatls VMC 139.19 2.3
ASML ASML 208.58 -0.7 21.00 -0.5 PretiumResources PVG 7.44 -10.6
BlueLinx BXC 14.13 1.8 Diageo DEO 147.62 0.2 RushEnt A RUSHA 54.87 2.4 Textainer TGH 26.40 5.2 WAVE LifeSci WVE 41.50 -1.2 Caesarstone CSTE
Abaxis ABAX 66.75 -1.0 Hexcel HXL 69.27 1.6 MarineMax HZO 24.30 2.4 PublicStoragePfdF PSApF 24.52 -0.3
BoiseCascade BCC 45.95 -0.3 DiplomatPharmacy DPLO 27.21 2.2 RushEnt B RUSHB 52.48 2.7 Textron TXT 60.69 1.4 W&T Offshore WTI 5.18 4.8 Cherokee CHKE 1.55 -4.6
AbbottLabs ABT 64.60 2.4 HillIntl HIL 5.80 0.9 MarriottVacations VAC 147.97 1.7 PublicStoragePfdG PSApG 23.81 -1.0
Bonso BNSO 3.62 0.9 DiscoverFinSvcs DFS 81.25 2.0 RuthsHospitality RUTH 23.65 3.1 TheBancorp TBBK 11.28 2.6 WEX WEX 154.40 2.6 CleanEnerFuels CLNE 1.58 0.6
AbbVie ABBV 108.37 2.6 Hill-Rom HRC 91.11 1.2 McDermottIntl MDR 9.07 -0.9 PublicStorage PSA 190.82 -1.2
BoydGaming BYD 39.73 2.0 DiscovComm B DISCB 36.10 -2.3 S&P Global SPGI 184.77 -0.7 ThermoFisherSci TMO 218.74 1.2 WPX Energy Pfd WPXP 67.83 -0.3 ColonyNorthStar CLNS 9.77 ...
Abiomed ABMD 237.40 1.4 HoeghLNG PfdA HMLPpA 27.42 -0.7 MeridianBiosci VIVO 16.25 9.5 RangeResources RRC 15.10 -9.9
BrookfieldBusPtr BBU 39.80 -0.2 DolbyLab DLB 74.29 9.0 SageTherap SAGE 183.87 1.6 3M MMM 254.80 1.9 WPX Energy WPX 16.09 -1.5 ColonyNrthStPfH CLNSpH 24.00 -1.5
Acushnet GOLF 21.98 0.6 Honeywell HON 161.89 1.2 MesabiTrust MSB 30.92 -0.5 SCE III Pfd SCEpH 25.08 -0.1
Brown-Forman B BF.B 69.53 -0.3 DollarGeneral DG 105.40 1.0 SangamoTherap SGMO 20.90 4.0 TiGenix TIG 42.73 0.3 WSFS Financial WSFS 52.95 0.6 ColonyNorthPfdJ CLNSpJ 23.71 -2.1
AdverumBiotech ADVM 6.80 12.2 HorizonBancorp HBNC 29.49 3.0 Michaels MIK 27.27 2.9 SCE II Pfd SCEpG 22.33 -0.9
Brown-Forman A BF.A 68.56 -0.5 Domino's DPZ 221.92 0.3 SareptaTherap SRPT 68.67 2.8 Total TOT 59.57 ... Wal-Mart WMT 106.81 0.8 ColonyNrthStPfI CLNSpI 24.00 -2.1
Aegon AEG 7.02 0.1 HoulihanLokey HLI 51.79 -1.1 MobileTeleSys MBT 12.09 2.1 SCE IV Pfd SCEpJ 24.80 -0.4
Buenaventura BVN 16.02 0.3 DouglasDynamics PLOW 43.00 1.4 Sasol SSL 38.75 4.1 TotalSystem TSS 89.03 1.1 Watsco WSO 180.64 1.7 ConforMIS CFMS 1.45 -33.9
Aetna AET 192.93 0.9 Humana HUM 287.24 -0.1 Moelis MC 52.10 1.6 SCE V Pfd SCEpK 25.00 -0.9
CGI Group GIB 56.19 -1.5 Dunkin' DNKN 68.45 1.0 ServiceCorp SCI 39.94 0.8 TransDigm TDG 307.27 1.0 WattsWater WTS 81.35 1.6 DDR PfdJ DDRpJ 24.63 -0.7
AgilentTechs A 74.49 0.4 Huntsman HUN 36.09 1.1 Monro MNRO 63.90 1.4 SCE Tr VI 5% Pfd L SCEpL 22.36 0.3
CH Robinson CHRW 98.66 0.4 ENI E 37.48 1.0 ServiceNow NOW 146.90 0.1 TransUnion TRU 60.78 0.7 Wayfair W 92.65 0.4 DDR PfdK DDRpK 24.40 -0.4
Agilysys AGYS 13.00 4.9 IAC/InterActive IAC 144.74 0.7 Monsanto MON 123.15 0.2 ScorpioTankers STNG 2.94 -0.7
CNH Indl CNHI 15.13 0.9 EOG Rscs EOG 119.00 -0.9 Shopify SHOP 126.24 4.4 Travelers TRV 148.88 0.6 WellsFargo Wt WFC.WS 32.30 0.7 DeutscBkTruPS DTK 24.42 ...
AirLease AL 50.22 0.9 ICU Medical ICUI 240.20 -0.3 Moody's MCO 163.70 0.4 SearsHoldings SHLD 2.75 -11.2
CRH CRH 39.32 0.3 EPAM Systems EPAM 117.13 0.6 Siliconware SPIL 8.59 0.1 Trimble TRMB 45.70 0.5 WellsFargo WFC 65.85 0.3 EllsworthPfdA ECFpA 24.40 -0.6
AirProducts APD 175.17 1.9 IdexxLab IDXX 187.11 0.9 NamTaiProperty NTP 13.40 1.1
SilverRunII SRUNU 11.56 1.5 Trinseo TSE 83.95 3.4 Weyerhaeuser WY 37.86 0.4 EthanAllen ETH 24.85 -7.1 SkylineMedical SKLN 0.88 -0.4
CRISPR Therap CRSP 41.57 8.0 EastWestBncp EWBC 69.25 -0.2 IHSMarkit INFO 49.19 -0.5 NationalCommerce NCOM 44.50 4.3
Alibaba BABA 199.59 1.4 Fabrinet FN 25.01 ... Synacor SYNC 1.85 2.6
CabotMicro CCMP 105.69 0.9 EasterlyAcqn EACQ 10.20 -0.5 ILG ILG 31.33 0.1 Neenah NP 95.30 2.7 SixFlags SIX 69.99 0.5 Trupanion TRUP 35.39 1.6 Wiley B JW.B 68.00 -1.9
Altaba AABA 78.99 1.0 FivePrimeTherap FPRX 19.70 6.8 Synchronoss SNCR 8.13 -9.2
CalAmp CAMP 25.08 10.0 EastmanChem EMN 100.48 1.7 ITUS ITUS 6.43 10.5 Netflix NFLX 272.30 3.2 Skyline SKY 24.95 11.0 US Foods USFD 33.85 1.1 Wiley A JW.A 68.40 -3.0
Alteryx AYX 31.60 7.8 GeorgiaPwrNt77 GPJA 23.90 -1.8 TOP Ships TOPS 0.20 -10.4
CaliforniaRscs CRC 25.06 0.1 Eaton ETN 85.67 0.9 IDEX IEX 140.90 1.9 Nike NKE 68.64 -0.4 SmithAO AOS 67.81 0.9 UltraparPart UGP 26.48 0.9 Wingstop WING 46.91 1.8
AmEqtyLf AEL 35.28 1.4 Globalstar GSAT 1.07 -4.4 TaubmanCtrsPfdK TCOpK 22.72 -0.6
CanFiteBiopharm CANF 2.75 18.4 Ebix EBIX 84.30 1.8 Ingredion INGR 142.69 0.9 NoahHoldings NOAH 52.83 0.5 SodaStream SODA 76.89 0.7 UtdCmtyBks UCBI 32.71 2.9 WorldAcceptance WRLD 98.40 3.0
AmericanFin AFG 113.69 0.8 GoldmanSachsPfB GSpB 25.34 0.2 USCellularNt63 UZB 25.13 -0.1
CantelMedical CMD 115.48 2.7 EchoGlobalLog ECHO 30.30 2.0 IntlSpeedwayA ISCA 46.05 10.6 6.15 2.5 SoundFinBancorp SFBC 35.40 -2.0 UnitedRentals URI 189.00 -1.9 WW Ent WWE 34.18 1.9
Noodles NDLS
n-

AmerStWater AWR 60.00 -3.3 HorizonGlobal HZN 9.01 -29.2 USCellularNts64 UZC 25.00 -1.3
Carters CRI 129.00 1.7 Ecopetrol EC 20.55 -2.0 SoCopper SCCO 50.90 0.1 US Bancorp USB 58.16 0.4 Worldpay WP 80.83 1.4
AmericanWoodmark AMWD 140.10 1.9 InternetInitiat IIJI 12.50 15.4 NorthropGrum NOC 325.99 3.7
CaseysGenStores CASY 126.35 -0.4 22.84 -1.6 SpiritAeroSys SPR 100.83 0.7 USBrentOilFd BNO 19.30 -1.0 WynnResorts WYNN 203.63 ... HugotonRoyalty HGT 0.84 -1.8 US ShortOilFd DNO 51.37 0.9
AmericoldRealty COLD 18.05 0.7 EducDev EDUC IntersectENT XENT 36.45 2.0 Novartis NVS 93.95 2.4
Catalent CTLT 47.18 2.1 EdwardsLife EW 127.03 1.2 SproutsFarmersMkt SFM 28.07 0.8 USComdtyIndxFd USCI 43.60 -0.5 YPF YPF 26.70 -0.3 IndLogistics ILPT 21.47 -1.1 Vivus VVUS 0.45 -2.6
Ametek AME 77.54 0.1 InterXion INXN 60.84 1.8 NuCana NCNA 29.07 14.7
CatalystBiosci CBIO 27.00 10.9 EllomayCapital ELLO 11.09 5.2 Statoil STO 24.47 0.2 USDieselHeatingOil UHN 19.94 0.1 Yandex YNDX 38.64 1.4 InvescoMtgPfdC IVRpC 24.76 -0.6 WebsterFinlPfdF WBSpF 24.14 -0.1
AnaptysBio ANAB 126.23 -2.9 IntuitiveSurgical ISRG 452.00 2.8 OReillyAuto ORLY 279.23 -1.1
CboeGlobalMkts CBOE 137.43 1.2 EmpresaDisCom EDN 62.06 2.7 StellarAcqnIIIWt STLRW 0.64 2.2 USGasolineFd UGA 34.19 -1.1 Zoetis ZTS 79.38 1.2 Iridex IRIX 7.26 -1.4 ZosanoPharma ZSAN 0.35 -13.0
AnikaTherap ANIK 63.17 1.6 Invacare IVC 18.15 0.8 OnAssignment ASGN 69.00 1.0
Anthem ANTM 254.41 -0.6 CementosPacasm CPAC 13.49 4.8 EnantaPharma ENTA 74.33 2.8 IovanceBiotherap IOVA 14.85 27.4 Orange ORAN 18.48 0.6
no

AppliedIndlTechs AIT 74.40 2.9 CenturyAluminum CENX 23.94 2.6 EncompassHealth EHC 53.73 1.6 ItauCorpBanca ITCB 15.53 5.6 OrmatTech ORA 69.25 3.1
Apptio APTI 25.83 0.3 ChemicalFin CHFC 59.67 -0.3 EnelAmericas ENIA 12.11 0.5 ItauUnibanco ITUB 16.77 2.6 OrthofixIntl OFIX 57.86 3.5
arGEN-X
AristaNetworks ANET
ARGX 76.99
279.60
-0.2
1.3
CheniereEnergy LNG
ChinaEastrnAir CEA
59.49
42.39
1.5
5.7
EnelChile
EnelGenChile EOCC
ENIC 6.53
29.10
1.9
0.6
JPMorganWt JPM.WS
JPMorganChase JPM
75.68
116.17
-0.3
...
Oshkosh
Otelco
OSK
OTEL
100.26
15.50
2.5
1.6
Dividend Changes
AscendisPharma ASND 55.00 -5.0 ChinaPetrol SNP 89.62 0.6 Enerplus ERF 11.71 1.7 JianpuTech JT 9.49 0.1 PJT Partners PJT 50.02 1.0
AshlandGlobal ASH 75.93 1.7 ChinaSoAirlines ZNH 59.94 5.5 Entegris ENTG 35.35 -1.7 JonesLang JLL 156.70 1.8 PNC Fin Wt PNC.WS 91.45 ... Dividend announcements from January 25.
AspenTech AZPN 84.40 2.5 ChinaYuchai CYD 27.98 0.4 EsteeLauder EL 137.67 0.7 KAR Auction KAR 54.86 0.2 PNC Fin PNC 158.69 ...
AstraZeneca AZN 36.51 0.8 ChurchillDowns CHDN 258.50 1.1 EvercoreA EVR 100.10 1.1 KKR KKR 24.45 1.8 POSCO PKX 92.94 3.0 Amount Payable / Amount Payable /
AtHomeGroup HOME 34.02 4.7 Cigna CI 222.96 0.4 Fastenal FAST 57.68 0.4 KLA Tencor KLAC 121.65 -1.6 PTC Therap PTCT 23.84 1.0 Company Symbol Yld % New/Old Frq Record Company Symbol Yld % New/Old Frq Record
AutoNation AN 61.31 0.4 Cintas CTAS 167.56 1.0 FiatChrysler FCAU 24.95 0.7 Kaman KAMN 62.61 1.7 PVH PVH 155.64 0.9
BP BP 44.62 -0.5 Citigroup C 80.39 ... FidNatlInfo FIS 101.80 0.9 KaziaTherap KZIA 4.13 8.1 Paccar PCAR 78.66 -1.4 Increased Foreign
BancoBilbaoViz BBVA 9.52 1.7 CitiusPharmWt CTXRW 1.38 62.4 FifthThirdBncp FITB 33.51 -1.5 KeyTechnology KTEC 27.45 49.8 PagSeguroDig PAGS 29.92 0.3 Allete ALE 3.1 .56 /.535 Q Mar01 /Feb15
BancoBradescoPf BBD 13.08 2.0 CitrixSystems CTXS 94.78 0.2 FirstCash FCFS 73.15 2.0 KeyCorp KEY 21.88 -0.3 PensareAcqnUn WRLSU 10.42 0.1 Dynagas LNG 9% Pfd. A DLNGpA 8.6 .5625 Q Feb12 /Feb05
Central Pacific Financial CPF 2.6 .19 /.18 Q Mar15 /Feb28
BancoBradesco BBDO 12.26 -2.0 Coca-Cola KO 48.00 ... FleetCorTech FLT 213.74 2.1 KuraOncology KURA 20.80 -1.3 People'sUtahBncp PUB 33.90 1.0
Comcast Cl A CMCSA 1.8 .19 /.1575 Q Apr25 /Apr04
BancodeChile BCH 106.50 -0.6 CommWestBcshs CWBC 11.30 1.3 FlirSystems FLIR 52.49 0.8 LATAMAirlines LTM 17.13 1.1 PeoplesBncpOH PEBO 35.66 1.6
JB Hunt Transport JBHT 0.8 .24 /.23 Q Feb23 /Feb09
Special
Bladex BLX 30.50 0.4 SABESP SBS 11.59 ... ForescoutTechs FSCT 35.00 1.2 LandstarSystem LSTR 111.65 ... PerkinElmer PKI 83.57 1.6
BcoSantChile BSAC 34.98 0.3 ConchoRscs CXO 162.21 -0.7 FreeportMcM FCX 20.25 1.1 Lantheus LNTH 24.45 5.9 PetroleoBrasil PBR 13.64 1.3 Marine Products MPX 2.5 .10 /.07 Q Mar09 /Feb09 Alliant Energy LNT 3.3 .0005 Feb15 /Jan31
BancoSantander SAN 7.57 1.3 Conmed CNMD 57.81 2.3 FreseniusMed FMS 57.06 0.1 Lazard LAZ 59.64 0.7 PetroleoBrasilA PBR.A 12.75 1.4 MDC Holdings MDC 3.5 .30 /.23148 Q Feb21 /Feb07 Brown-Forman Cl A BF.A 0.9 1.00 Apr23 /Apr02
BankofAmWtB BAC.WS.B 3.55 0.3 Cosan CZZ 11.15 2.1 GDSHoldings GDS 30.54 0.1 Lear LEA 193.73 -0.4 Pool POOL 136.38 0.2 Republic Bancorp KY Cl A RBCAA 2.5 .242 /.22 Q Apr20 /Mar16
BankofAmWtA BAC.WS.A 20.25 ... CoStar CSGP 355.80 -0.9 GOL Linhas GOL 11.17 2.9 LeggMason LM 47.13 0.9 Praxair PX 166.95 1.5 Brown-Forman Cl B BF.B 0.9 1.00 Apr23 /Apr02
BankofAmerica BAC 32.25 ... Costco COST 198.45 1.9 Galapagos GLPG 116.34 0.9 LennoxIntl LII 220.33 1.1 ProfireEnergy PFIE 2.40 7.8
RPC RES 1.9 .10 /.07 Q Mar09 /Feb09
Barclays BCS 12.02 ... Crane CR 94.06 1.3 GeneralDynamics GD 227.71 3.3 LibertyGlobal A LBTYA 38.28 0.7 ProvidenceService PRSC 65.83 0.9
BaxterIntl BAX 71.06 1.3 CreditAcceptance CACC 366.88 2.6 GenuineParts GPC 106.81 -0.3 LibertyQVC B QVCB 27.50 ... PureStorage PSTG 19.58 4.8
Stocks KEY: A: annual; M: monthly; Q: quarterly; r: revised; SA: semiannual;
BectonDickinsonPfA BDXA 63.06 1.3 Cullen/Frost CFR 106.94 4.3 GlbBloodTherap GBT 61.15 3.8 LibertyLatAmA LILA 23.84 3.6 RLI RLI 63.80 7.2 Arcadia Biosciences RKDA 1:20 /Jan24 S2:1: stock split and ratio; SO: spin-off.

Mutual Funds | WSJ.com/fundresearch Fund

Net YTD
NAV Chg % Ret Fund
Net YTD
NAV Chg % Ret Fund
Net YTD
NAV Chg % Ret Fund
Net YTD
NAV Chg % Ret Fund
Net YTD
NAV Chg % Ret Fund
Net YTD
NAV Chg % Ret
FF2025 15.01 -0.01 4.2 FrankTemp/Temp A Oakmark 90.55 -0.20 7.4 R2040 28.73 ... 5.5 MuShtAdml 15.72 -0.01 0.2 TgtRe2045 23.75 -0.01 5.6
Explanatory Notes Data provided by FF2030 18.99 -0.01 5.1 GlBond A p 12.02 -0.02 1.3 OakmrkInt 30.81 -0.08 7.8 Value 39.29 -0.04 5.3 PrmcpAdml r 142.97 -0.34 7.0 TgtRe2050 38.21 -0.02 5.6
Freedom2020 K 17.18 -0.01 3.8 Growth A p 29.15 -0.05 6.9 Old Westbury Fds PRIMECAP Odyssey Fds REITAdml r 113.32 -0.19 -3.6 TgtRetInc 13.76 ... 1.5
Top 250 mutual-funds listings based on total net assets for Nasdaq-published share classes.
NAV is net asset value. Percentage performance figures are total returns, assuming Freedom2025 K 14.99 -0.01 4.2 FrankTemp/Temp Adv LrgCpStr 15.33 -0.03 6.0 AggGrowth r 48.20 -0.04 8.7 SmCapAdml 73.95 +0.01 4.5 TotIntBdIxInv 10.83 ... -0.2
reinvestment of all distributions and after subtracting annual expenses. Figures don’t reflect Freedom2030 K 18.96 -0.01 5.2 GlBondAdv p 11.97 -0.02 1.3 Oppenheimer Y Growth r 40.51 -0.05 8.8 STBondAdml 10.33 ... -0.4 WellsI 27.25 +0.02 1.1
sales charges (“loads”) or redemption fees. NET CHG is change in NAV from previous trading Freedom2035 K 16.12 -0.02 6.0 Harbor Funds DevMktY 46.67 +0.12 8.7 Principal Investors STIGradeAdml 10.59 ... -0.2 Welltn 43.53 +0.01 3.6
day. YTD%RET is year-to-date return. f-Previous day’s quotation. p-Distribution costs apply, Freedom2040 K 11.34 -0.01 6.1 CapApInst 76.05 +0.22 9.5 IntGrowY 46.00 -0.19 5.5 DivIntlInst 14.82 -0.03 6.6 TotBdAdml 10.66 +0.03 -0.7 WndsrII 40.22 -0.02 6.3
12b-1. r-Redemption charge may apply. t-Footnotes p and r apply. NA-Not available due to Fidelity Invest IntlInst r 72.91 -0.19 8.0 Parnassus Fds Prudential Cl Z & I TotIntBdIdxAdm 21.65 -0.01 -0.2 VANGUARD INDEX FDS
incomplete price, performance or cost data. NE-Not released by Lipper; data under review. NN- Balanc 24.82 ... 4.6 Harding Loevner ParnEqFd 45.06 +0.14 5.6 TRBdZ NA ... NA TotIntlAdmIdx r 32.52 -0.09 6.6 500 262.31 +0.16 6.3
Fund not tracked. NS-Fund didn’t exist at start of period. BluCh 95.19 -0.03 8.5 IntlEq NA ... NA PIMCO Fds Instl Schwab Funds TotStAdml 70.74 +0.04 6.0 ExtndIstPl 219.19 +0.04 4.8
Contra 133.45 +0.24 9.0 Invesco Funds A AllAsset NA ... NA S&P Sel 43.77 +0.02 6.3 TxMIn r 15.25 -0.05 5.8 SmValAdml 59.21 -0.01 3.8
Thursday, January 25, 2018 ContraK 133.38 +0.24 9.0 EqIncA 11.46 -0.02 4.6 TotRt 10.20 +0.03 -0.5 TIAA/CREF Funds ValAdml 43.70 +0.08 5.5 TotBd2 10.62 +0.02 -0.8
CpInc r 10.49 -0.01 2.1 John Hancock Class 1 PIMCO Funds A EqIdxInst 20.83 +0.01 6.0 WdsrllAdml 71.36 -0.05 6.3 TotIntl 19.44 -0.05 6.6
Net YTD Net YTD Net YTD
Fund NAV Chg % Ret Fund NAV Chg % Ret Fund NAV Chg % Ret DivIntl 42.56 -0.15 6.3 LSBalncd 15.75 ... 3.7 IncomeFd NA ... NA IntlEqIdxInst 21.43 -0.09 6.2 WellsIAdml 66.01 +0.04 1.1 TotSt 70.72 +0.04 6.0
GroCo 195.65 +0.29 9.5 LSGwth 16.89 -0.01 5.0 PIMCO Funds D Tweedy Browne Fds WelltnAdml 75.17 +0.02 3.6 VANGUARD INSTL FDS
American Century Inv BlackRock Funds A Balanced 111.87 -0.21 4.6 John Hancock Instl
GrowCoK 195.63 +0.29 9.5 IncomeFd NA ... NA GblValue 29.46 -0.07 3.4 WndsrAdml 83.49 -0.36 5.7 BalInst 35.88 +0.05 3.3
Ultra 47.16 +0.10 8.6 GlblAlloc p 20.52 -0.02 4.2 GblStock 14.94 ... 7.8 DispValMCI 24.41 -0.06 4.7 PIMCO Funds Instl VANGUARD ADMIRAL
InvGB 7.86 +0.01 -0.6 VANGUARD FDS DevMktsIndInst 15.27 -0.05 5.8
American Funds Cl A BlackRock Funds Inst Income 13.73 +0.02 -0.2 JPMorgan Funds
InvGrBd 11.16 +0.02 -0.6 IncomeFd NA ... NA 500Adml 262.33 +0.16 6.3 DivdGro 28.03 +0.04 5.6 DevMktsInxInst 23.87 -0.08 5.8
AmcpA p 33.92 +0.09 7.7 EqtyDivd 24.09 +0.02 5.8 Intl Stk 50.28 +0.03 8.5 MdCpVal L 41.74 -0.16 3.6 PIMCO Funds P BalAdml 35.87 +0.04 3.3 HlthCare r
LowP r 57.73 -0.15 5.9 220.51 +1.15 7.3 ExtndInst 88.82 +0.02 4.8
AMutlA p 42.68 +0.03 4.6 GlblAlloc 20.64 -0.02 4.2 Stock 218.51 -0.70 7.3 JPMorgan R Class IncomeP NA ... NA CAITAdml 11.70 -0.01 -0.5 INSTTRF2020 23.23 GrwthInst 77.54 -0.05 7.2
DoubleLine Funds MagIn 113.11 +0.18 8.2 ... 3.1
BalA p 28.10 -0.02 3.5 HiYldBd 7.86 ... 1.1 CoreBond 11.52 +0.03 -0.6 Price Funds CapOpAdml r 164.69 -0.58 7.2 INSTTRF2025 23.71 InPrSeIn 10.37 +0.02 -0.6
TotRetBdI NA ... NA OTC 118.50 -0.11 7.9 ... 3.7
BondA p 12.79 +0.02 -0.7 StratIncOpptyIns 10.08 ... 1.4 Lazard Instl BlChip 105.94 +0.30 10.0 EMAdmr 41.74 -0.05 9.3 INSTTRF2030 24.09 InstIdx 258.76 +0.16 6.3
Edgewood Growth Instituti Puritn 24.55 +0.03 4.8 ... 4.2
CapIBA p 64.61 -0.12 2.8 Bridge Builder Trust EmgMktEq 21.77 +0.04 8.7 CapApp 29.38 +0.07 3.9 EqIncAdml 81.57 -0.01 4.6 INSTTRF2035 24.48 InstPlus 258.78 +0.16 6.3
EdgewoodGrInst 32.47 +0.09 9.8 SrsEmrgMkt 23.38 -0.03 9.2 ... 4.7
CapWGrA 54.35 +0.03 6.3 CoreBond NA ... NA Lord Abbett A EqInc 35.25 -0.05 5.7 ExplrAdml 93.72 +0.16 6.0 INSTTRF2040 24.87 InstTStPlus 63.06 +0.04 6.0
Federated Instl SrsGroCoRetail 18.24 +0.03 9.7 -0.01 5.3
EupacA p 59.88 -0.06 6.5 Dimensional Fds ShtDurIncmA p 4.24 ... ... EqIndex 76.20 +0.04 6.3 ExtndAdml 88.82 +0.01 4.8 INSTTRF2045 25.12 MidCpInst 44.53 -0.03 5.2
StraValDivIS 6.22 ... 1.1 SrsIntlGrw 17.20 -0.08 6.5 -0.01 5.5
FdInvA p 66.11 -0.21 6.3 5GlbFxdInc 10.82 ... -0.5 SrsIntlVal 11.45 -0.03 7.1
Lord Abbett F Growth 68.09 +0.14 8.7 GNMAAdml 10.38 +0.02 -0.6 IntlVal 42.58 -0.11 6.8 MidCpIstPl 219.62 -0.15 5.2
Fidelity
GwthA p 53.58 +0.05 8.2 EmgMktVa 34.19 +0.11 9.5 ShtDurIncm 4.23 ... -0.2 HelSci 77.55 +0.55 10.2 GrwthAdml 77.53 -0.06 7.2 LifeCon SmCapInst 73.95 +0.01 4.5
500IdxInst 99.32 +0.06 6.3 TotalBond 10.58 +0.02 -0.4 20.39 +0.01 2.2
HI TrA p 10.44 ... 1.0 EmMktCorEq 25.07 +0.09 8.0 Metropolitan West
500IdxInstPrem 99.32 +0.06 6.3 First Eagle Funds InstlCapG 40.57 +0.16 9.9 HlthCareAdml r 93.00 +0.49 7.3 LifeGro 35.31 -0.01 4.9 SmCapIstPl 213.44 +0.03 4.5
ICAA p 42.75 +0.02 5.8 IntlCoreEq 15.43 -0.06 6.1 TotRetBd 10.58 +0.03 -0.6
IntlStk 19.84 -0.03 6.3 HYCorAdml r 5.94 ... 0.6 LifeMod STIGradeInst 10.59 ... -0.2
500IdxPrem 99.32 +0.06 6.3 GlbA 61.87 -0.20 4.8
TotRetBdI 10.58 +0.03 -0.6
28.09 ... 3.5
IncoA p 24.13 -0.03 3.3 IntlVal 22.03 -0.06 7.5 IntlValEq 16.05 -0.03 6.2 InfProAd 25.46 +0.04 -0.5 PrmcpCor 28.60 -0.11 6.3 TotBdInst 10.66 +0.03 -0.7
ExtMktIdxPrem r 65.02 +0.01 4.8 FPA Funds
N PerA p 46.42 -0.07 7.6 IntSmCo 22.50 -0.09 5.8 TRBdPlan 9.95 +0.02 -0.7 IntlGrAdml 104.00 -0.13 8.8 SelValu r
IntlIdxPrem r 45.83 -0.19 6.1 FPACres 36.15 +0.03 4.2 MCapGro 92.94 +0.19 6.8 32.87 -0.12 5.1 TotBdInst2 10.62 +0.02 -0.8
NEcoA p 48.22 +0.10 8.0 MFS Funds Class I
IntSmVa 24.27 -0.08 5.7 SAIUSLgCpIndxFd 15.18 +0.01 6.3 FrankTemp/Frank Adv MCapVal 31.93 -0.02 5.0 ITBondAdml 11.23 +0.02 -1.0 STAR 27.90 +0.01 4.1 TotBdInstPl 10.66 +0.03 -0.7
NwWrldA 71.17 +0.03 6.4 ValueI 43.10 +0.02 5.7
US CoreEq1 24.13 +0.01 5.9 TMktIdxF r 80.97 +0.04 6.0 IncomeAdv 2.41 ... 2.6 N Horiz 56.37 +0.21 7.2 ITIGradeAdml 9.66 +0.02 -0.7 STIGrade 10.59 ... -0.2 TotIntBdIdxInst 32.49 -0.01 -0.2
SmCpA p MFS Funds Instl
59.16 -0.09 6.0 US CoreEq2 22.77 -0.02 5.6 TMktIdxPrem 80.96 +0.04 6.0 FrankTemp/Franklin A N Inc 9.42 +0.01 -0.6 LTGradeAdml 10.46 +0.07 -1.5 TgtRe2015 15.69 +0.01 2.3 TotIntlInstIdx r 130.04 -0.36 6.6
TxExA p IntlEq 26.80 -0.15 5.3
12.94 ... -0.6 US Small 37.43 -0.02 4.1 USBdIdxInstPrem 11.48 +0.02 -0.8 CA TF A p 7.41 ... -0.8 OverS SF r 12.03 -0.05 6.4 MidCpAdml 201.58 -0.14 5.2 TgtRe2020 32.37 +0.01 3.2 TotItlInstPlId r 130.06 -0.36 6.6
Mutual Series
WshA p 48.18 -0.03 5.5 US SmCpVal 39.38 -0.08 3.9 Fidelity Advisor I IncomeA p 2.43 ... 2.5 R2020 23.37 +0.01 3.7 MuHYAdml 11.34 ... -0.6 TgtRe2025 19.18 ... 3.7 TotStInst 70.76 +0.05 6.0
GlbDiscA 33.38 -0.07 5.0
Baird Funds US TgdVal 25.96 -0.08 4.3 NwInsghtI 34.68 +0.06 8.2 RisDv A p 64.61 +0.46 5.6 R2025 18.33 +0.01 4.2 MuIntAdml 14.03 ... -0.5 TgtRe2030 35.05 ... 4.2 ValueInst 43.70 +0.08 5.5
Oakmark Funds Invest
AggBdInst NA ... NA USLgVa 41.45 -0.10 6.0 Fidelity Freedom FrankTemp/Franklin C R2030 27.14 ... 4.7 MuLTAdml 11.56 ... -0.7 TgtRe2035 21.67 ... 4.7 Western Asset
EqtyInc r 33.53 -0.07 4.2
CorBdInst 11.14 +0.01 -0.5 Dodge & Cox FF2020 17.21 ... 3.9 Income C t 2.46 -0.01 2.5 R2035 19.95 +0.01 5.2 MuLtdAdml 10.89 ... 0.1 TgtRe2040 37.66 -0.01 5.3 CorePlusBdI NA ... NA
 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.
B10 | Friday, January 26, 2018
Jamison
To Close
Commodity
Flagship
BY ALISON SIDER
Jamison Capital Partners
LP is shutting its $1.5 billion
flagship fund, one of the big-
gest commodities hedge funds
to close in recent months.
The New York-based fund,
which is run by former Mor-
gan Stanley trader Stephen Ja-
mison, focused on commodi-
ties and macroeconomic
trends. It soon will begin re-
turning capital to investors
and is converting to a family-
office structure, according to a
person familiar with the mat-
ter.
Family offices manage the
fortunes of the wealthy and
are able to sidestep much of
the regulatory scrutiny that
firms handling outside clients’
money are subject to.
A Jamison representative
declined to comment on the
fund’s return performance.
Jamison is the latest in a
wave of commodity-focused
funds that are closing.
Some funds managed to
survive a three-year oil rout
but haven’t been able to hold
on long enough to benefit
from the recent rally in prices
of crude, metals and other
commodities.
Some traders complain that
declining investor interest in
commodities, after years of
plummeting prices, and
heightened regulation of com-
modity trading have made it
more difficult to turn a profit.
Last summer, prominent oil
trader Andrew Hall closed his
main fund at Astenbeck Capi-
tal Management LLC.
T. Boone Pickens said this
month that he is closing the
energy-focused fund he has
run for the past two decades,
citing his declining health and
the fund’s weak financial per-
formance.
News of the Jamison clo-
sure was reported Thursday
by Reuters.
FRAUD
Continued from page B1
Some investors—including
funds managed by Goldman,
Google parent Alphabet Inc.
and Mr. Pritzker’s venture
firm—are now suing Outcome
and its founders for their
money back, claiming they
were duped by fraudulent doc-
uments that inflated Out-
come’s product and financial
performance.
They also have alleged the
company charged for advertis-
ing space it didn’t deliver.
Outcome says the fraud al-
legations are baseless and its
founders did nothing wrong.
Outcome didn’t make either
Mr. Shah or Ms. Agarwal avail-
no
able for comment.
This deal will cause “a lot
more soul-searching,” said one
investor, whose firm has writ-
ten off its investment in Out-
come. “Clearly investors didn’t
do enough diligence.”
Venture-capital investing is
inherently risky—most start-
ups fail and few deliver out-
size returns. So investors have
to weigh potential rewards
against possible risks, and be
sure they understand both.
One question investors
might have asked is how Out-
come rapidly surpassed older
rivals in a traditionally slowly
growing industry despite hav-
ing raised minimal outside
capital. That growth was pow-
ered in part by a unique strat-
egy that the company’s found-
ers have explained during
interviews at tech events, a
strategy meant to solve its
“chicken-egg” problem that
Mr. Shah described in those
interviews came with a key
risk. (Please read “How Out-
come’s Strategy Worked” for
more details.)
Outcome projected a bright
future when it was fundraising
about a year ago—its first
time raising money from insti-
tutional investors.
The investor presentation
reviewed by the Journal said
that drug ads streamed on
Outcome’s screens delivered
twice the return on invest-
ment of television commer-
cials or print ads.
Outcome estimated its 2016
revenue doubled to $131 mil-
lion thanks to big customers
such as GlaxoSmithKline PLC,
A copper and cobalt mining pit in Congo. The country, which is raising taxes on some metals, holds two-thirds of the world’s cobalt.
In Congo, Cobalt to Get Pricier
BY NICHOLAS BARIYO
Congo is poised to double
taxes on cobalt, a move mining
companies warned would in-
hibit investment in a metal ex-
periencing a boom due to its
use in cellphones and electric
vehicles.
The central African country
holds as much as two-thirds of
the world’s cobalt. The price on
of cobalt has doubled since the
beginning of 2017 as mining,
technology and auto compa-
nies rush to secure supplies of
us l,
a metal that is a crucial ingre-
dient in the lithium-ion bat-
al a
e
tery.
The Congolese Senate late
Wednesday passed the new
ci on
mining code unanimously with
the support of President Jo-
seph Kabila, who is expected
to sign it into law.
Under the revised code,
er rs
Congo will classify metals
such as cobalt and tantalum, a
rare blue-gray metal used in
smartphones, as “strategic
m e
m rp
Money Trail
Some of the top investors in
Outcome are now suing the
startup.
co Fo
Select investors in 2017
funding round
Goldman Sachs Investment Partners
$100 million
Pritzker Group
50
CapitalG*
50
Norwest Venture Partners
50
Emerson Collective
n-
50
Hamilton Lane
40
Leerink Transformation Partners
26
Balyasny Asset Management
20
*CapitalG is an investment arm of Alphabet
Source: Court filings
THE WALL STREET JOURNAL.
How Outcome’s
Strategy Worked
Outcome Health relied on
an unique strategy for its
growth.
The startup needed cash to
install screens in doctor’s of-
fices, but without a network of
screens it couldn’t attract ad-
vertisers, Outcome’s founders
said in video interviews pub-
lished online.
Some companies that try to
build a business by connecting
two sides of a marketplace do
so by raising investor capital to
seed their market. Outcome
had bootstrapped itself, mean-
ing it needed a creative way to
and its 2014 and 2015 financial
statements were audited by a
prominent firm, Deloitte, ac-
cording to people familiar
with Outcome’s disclosures.
The presentation showed
Outcome had wide profit mar-
gins and a deep bench of
newly hired executives. Del-
oitte declined to comment.
Outcome also had a home-
town hero in Mr. Shah, a 32-
year-old Chicago-area native
BANKING & FINANCE
substances,” allowing the gov-
ernment to tax them at higher
rates. BMO Capital Markets
said it expects cobalt prices to
double in the next two years.
The new taxes would hit co-
balt producers like Swiss com-
modities company Glencore
PLC and potentially make the
metal more expensive for auto
makers and technology com-
panies.
Mining-industry groups lob-
bied against the law unsuc-
cessfully, and on Thursday de-
cried its potential impact.
“This revised mine code
will hurt investments in a sig-
nificant way,” said John
Nkono, the secretary-general
of the mine industry group
Chamber of Mines, in an inter-
view. “Government has ig-
nored our advice on almost
every aspect including on roy-
alties and tax rates….It is total
chaos.”
Glencore declined to com-
ment. The company pointed to
a statement in December
A booth that showed Outcome Health’s screens at an industry event held March 2017.
get cash to install the screens.
Shradha Agarwal, Outcome’s
co-founder, in a 2012 interview
at a tech event available online
described how Outcome solved
the problem, saying the other
co-founder Rishi Shah “negoti-
ated upfront payments” on ad-
vertising deals “to have money
in the bank and actually go and
do these installations and de-
liver 200 screens, deliver 500
screens, 2,000 screens, that’s
how we kept growing.” In a
2016 interview also online, Mr.
Shah described the strategy as
bringing “from the future what
we need to fuel the future in
the present, which is a concept
we’ve recycled.”
The risk of that strategy,
which Mr. Shah described in
who had won entrepreneur
awards for his rapidly growing
startup. Mr. Shah boasted a
powerful ally in Mr. Pritzker,
now a candidate for Illinois
governor and part of Chicago’s
prominent business dynasty.
Mr. Pritzker, 53, had known
Mr. Shah previously, in part
through the business-leader-
ship group Young Presidents’
Organization, according to
people familiar with the
signed by a Congolese subsid-
iary that said the country’s
mining-overhaul plan would
“have a major negative impact
on ongoing mining projects in
the Democratic Republic of the
Congo.”
Over the past three years,
Congo has struggled to raise
enough revenue to pay public
workers and fund social proj-
ects, fueling discontent across
the impoverished nation,
roughly the size of Western
Europe. A Congolese govern-
ment spokesman said the new
taxes, which also raise levies
on copper and nickel, would
give the country’s 80 million
people “a fair share” of its
natural resources.
Congo first attempted to re-
vise the 2002 mining code
three years ago before with-
drawing it following a slump
in global metal prices and
amid fierce objection from
miners. In May last year, the
government reintroduced the
bill, saying that despite strong
both the interviews, was that
Outcome needed to execute
with “military” precision. “It re-
quired you to sell an idea to
both” doctors and advertisers,
he said in 2016, “and then you
couldn’t mistime it, because you
know, that would be fraud,
right? If you sell something
that doesn’t exist.
“It’s like jumping through
one train to the other train and
making it out and it’s hard
right? We’re not the only ones
to do it, there are other
chicken-and-egg businesses. But
to build a chicken-and-egg busi-
ness that’s capital intensive
without any capital is actually
pretty hard. I’m not sure it’s
been done.”
Ray Rotolo, who previously
group. Mr. Shah serves on the
board that oversees 1871, a
Chicago tech incubator
founded by Mr. Pritzker, and
the Pritzker Group added Mr.
Shah to its team of senior ad-
visers in 2015. Mr. Shah is no
longer involved with the Pritz-
ker Group, but is still on the
board of 1871.
Goldman Sachs Investment
Partners, a unit of the invest-
ment bank’s asset-manage-
* *** THE WALL STREET JOURNAL.
Executive
Sues TCW
Over Her
Firing
BY JUSTIN BAER
A former TCW Group Inc.
executive alleged in a lawsuit
Thursday that she was fired
from the money manager in De-
DIANA ZEYNEB ALHINDAWI FOR THE WALL STREET JOURNAL
cember for filing a sexual-ha-
rassment complaint against her
boss.
Sara Tirschwell, a managing
director who led TCW’s dis-
tressed-debt group, sued the
firm, Chief Executive David
Lippman and her direct supervi-
sor, Jess Ravich. She is seeking
at least $30 million in damages.
Ms. Tirschwell said in her
complaint filed with the New
York Supreme Court that Mr.
Ravich made unwanted sexual
advances during a series of at
least seven breakfast meetings
that began in the spring of
2016, often while he was
dressed in a white bathrobe. Ac-
cording to the lawsuit, he re-
peatedly coerced her into sex,
growth registered by the min- implicitly threatening to de-
ing sector, it continues to lag prive her of investor access and
behind in terms of revenue other resources required to
contributions to the govern- build her fund if she refused.
ment. Ms. Tirschwell said TCW
Mr. Kabila is in the midst of ended support for her invest-
a political crisis as he refuses ment fund after she stopped at-
.
to step down after the official tending the meetings and fired
ly
end of his tenure in 2016 and her nine days after she went to
tries to extend his power. the firm’s head of human re-
“The adoption of this bill sources to lodge a complaint
coincides with a time where against him. After she was told
President Kabila needs more she was fired for cause, Ms.
resources to keep himself in Tirschwell said, Mr. Lippman
power,” said George Ott, an offered her a chance to resign
analyst with NKC African Eco- her position to “end things
nomics. “It also provides him nicely.” He offered her
with the opportunity to use $500,000, along with a year of
the newfound revenue on proj- paid medical benefits, she said
ects to salvage what is left of in the complaint.
his legitimacy and to dampen A TCW spokesman said that
opposition. the firm fired Ms. Tirschwell for
“Mr. Kabila is betting on “repeated, documented viola-
the global trends in cobalt de- tions of firm policy” and that
mand, in which the DRC will she had made “no complaint of
remain the essential source any kind before it was clear she
that will leave international was being dismissed.”
mining companies with little Messrs. Ravich and Mr. Lipp-
option but to adapt to the reg- man declined to comment
ulatory changes,” Mr. Ott said. through the spokesman.
investors, these people said.
Outcome came with risks
that were evident before in-
vestors signed on. The com-
pany owed $325 million after
taking out a loan to buy a rival
in 2016, which raised the risk
for investors since creditors
would be paid back first in a
sale or bankruptcy.
Outcome also didn’t have
an independent board to pro-
vide oversight and account-
ability from an outside per-
spective.
The board consisted solely
of Mr. Shah and Ms. Agarwal
before the investment, accord-
ing to a person familiar with
the matter, and only Goldman
would join afterward.
Outcome informed inves-
tors before the funding of an
October 2016 whistleblower
claim by a salesman accusing
the company of “committing
ongoing fraud” by misleading
customers about the size of its
OUTCOME HEALTH
network, according to court
documents. Outcome told the
investors the claims were mer-
itless, according to the docu-
ments.
Whatever the signs, inves-
tors say they couldn’t have
ran a media agency that bought foreseen that Outcome
advertising space from compa- would—as they allege in their
nies like Outcome, said he lawsuit—alter numbers in case
hadn’t seen an example of an- studies to make its ads seem
other company in the industry more effective.
charging for screens that it An Outcome spokesman de-
hadn’t yet installed, but that clined to comment on the alle-
there would be nothing wrong gation that it altered case
with such a policy provided cli- studies, citing ongoing litiga-
ents ultimately get what they tion. People close to the deal
pay for. said investors liked the large
In a statement, an Outcome and growing profits that Out-
spokesman said: “Mr. Shah’s come stated, and were willing
comments were about starting to bet on the company because
a company with a two-sided Outcome sweetened the deal
market and the importance of with a unique structure
delivering for both sets of cus- whereby it guaranteed inves-
tomers, as explained in the in- tors a 20% annual return.
terview.” He added that the In most startup equity
founders always stressed “the deals, investors simply buy
importance of execution with shares at a set price and hope
integrity.” —Rolfe Winkler they will rise in value.
With guaranteed upside, in-
vestors agreed to earmark
ment division, signed on to $225 million—nearly half of
lead the Outcome investment the equity investment—to pay
after teaming up with the the founders a dividend, ac-
Pritzker Group on a prior deal. cording to the lawsuit.
As lead investor, Goldman Two venture investors say
Sachs directed the due-dili- they passed on the Outcome
gence process to spot poten- deal because of the dividend,
tial risks, according to peo- the company’s debt burden,
ple familiar with the and a worry that the return
fundraising process. Gold- guarantee wouldn’t pay off as
man, which invested $100 expected. One of the investors
million of its clients’ money was also wary of the founder-
in Outcome, recruited other controlled board.
 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.
THE WALL STREET JOURNAL.
Blue Chips Ascend to a Record
Strong earnings from
3M bolster the index
as Trump’s remarks on
dollar pressure shares
BY MICHAEL WURSTHORN
AND RIVA GOLD
The Dow Jones Industrial
Average climbed to a new high,
but pared gains after President
Donald Trump said he would
like to see a strong dollar.
The Dow industrials had
risen more
THURSDAY’S than 200
MARKETS points Thurs-
day, as an up-
beat corpo-
rate earnings report from 3M,
the maker of Scotch tape and
Post-it Notes, helped extend
the index’s gains this year.
The Dow gave up a big por-
tion of its advance later in the
afternoon after Mr. Trump’s
remarks to CNBC about the
U.S. currency, appearing to
contradict comments by his
Treasury secretary the previ-
ous day.
As stocks pulled back, the
dollar edged higher against
other currencies.
“The market isn’t collaps-
ing, but whether it’s people
talking about the dollar’s
weakness versus the dollar’s
strength, it’s permeating the
conversation,” said Kenny Pol-
cari, director of equities at
O’Neil Securities.
The Dow industrials added
140.67 points, or 0.5%, to
26392.79, its 10th record close
of the year. The Dow’s torrid
pace this month outpaces the
two records the index notched
in January last year, which
ended with 71 closing highs.
The S&P 500 rose 1.71
points, or less than 0.1%, to
2839.25, also a record, while
the Nasdaq Composite Index
edged down 3.89 points, or
less than 0.1%, to 7411.16.
The focus on trade and the
dollar took attention away
from several strong earnings
reports that contributed to
some of the biggest individual
stock moves, Mr. Polcari said.
NYSE, Nasdaq Fight
Cboe’s Auction Plan
BY ALEXANDER OSIPOVICH
The New York Stock Ex-
change and Nasdaq Inc. are
making a last-ditch effort to
retain their grip on the crucial
4 p.m. closing auctions that
determine end-of-day prices
for thousands of stocks.
The two big exchange
groups will appeal a regula-
tor’s decision that would allow
a rival, Cboe Global Markets
Inc., to siphon off trading ac-
tivity from the closing auc-
tions for NYSE- and Nasdaq-
listed securities, threatening
the two firms’ revenues from
no
trading fees. The duo revealed
their plans to keep fighting
Cboe’s plan in filings posted
late Wednesday on the website
of the Securities and Exchange
Commission.
Closing auctions have
become more crucial
to the functioning of
U.S. stock markets.
Last week, SEC staff gave
Cboe the green light for its
closing-auction proposal de-
spite fierce opposition from
the NYSE, which is owned by
Intercontinental Exchange
Inc., and Nasdaq. With their
latest move, the two exchange
groups will seek to have the
SEC’s five commissioners re-
consider that decision.
Under Cboe’s proposal,
traders would get a new way
to execute “market-on-close”
orders, in which they agree to
buy or sell shares at whatever
end-of-day price is determined
in the auction. Instead of send-
ing such orders to the NYSE or
Nasdaq, traders could send
them to Cboe, which would
seek to fill them using the
day’s final price published by
its competitors.
A NYSE spokeswoman said
in an emailed statement that
Cboe’s plan was “not in the
best interest of issuers and in-
vestors.” A Nasdaq spokesman
said: “Issuers, indexers and in-
vestors have all filed comment
* * * *
Windows coated with a 3M product that looks like stained glass. 3M provided 32 points to the Dow’s rise.
Posting It Higher
Shares of 3M climbed after reporting better-than-expected earnings,
contributing to the Dow industrials' gain for a second consecutive day.
Performance, minute by minute
3.0%
2.5
2.0
1.5
1.0
on
0.5
0
us l,
–0.5
9:30 10 11 noon
al a
e
Source: FactSet
3M gained $4.67, or 1.9%, to
ci on
$252.36, reaching a high and
contributing roughly 32 points
to the Dow’s gain, after the
manufacturer reported higher-
than-expected earnings and
er rs
revenue and raised its profit
outlook for the year.
Caterpillar, another Dow
m e
m rp
co Fo
letters against this proposal…it
is our duty to ensure they are
heard and accounted for.” The
SEC declined to comment.
Earlier, the NYSE and Nas-
daq had argued that Cboe’s
plan would harm the integrity
of their closing auctions and
enable market manipulation.
Cboe, the No. 2 U.S. stock-ex-
change operator by volume,
has dismissed such worries as
“fearmongering.” The Chicago-
based firm says it is trying to
n-
help traders save money after
both the NYSE and Nasdaq in-
creased fees for participating
in the closing auction in recent
years.
Such benefits will be de-
layed as a result of the NYSE’s
and Nasdaq’s appeals, said
Bryan Harkins, head of U.S. eq-
uities and global FX at Cboe.
“We look forward to working
with the Commission on a
prompt resolution,” he said in
an emailed statement.
The squabble comes as clos-
ing auctions have grown more
important to the functioning
of U.S. markets, largely due to
the rising popularity of ex-
change-traded funds and pas-
sive investing strategies. That
is because index-fund manag-
ers will typically seek to track
the daily settlement price of
the stocks that comprise their
index. That often leads them
to buy or sell shares in the
closing auction.
Last year, 6.5% of the vol-
ume in NYSE-listed securities
took place at the close, up
from 3.6% in 2012, according
to the exchange. For Nasdaq-
listed securities, the share of
volume at the close rose to 5%
from 3% over the same period,
according to Nasdaq.
During regular trading
hours, from 9:30 a.m. to 4 p.m.
Eastern time, a stock can be
traded on any of a dozen U.S.
exchanges and numerous off-
exchange “dark pools.” But at
the close, it reverts to the ex-
change where it is listed. That
means the NYSE has an effec-
tive monopoly on closing auc-
tions for shares of companies
listed on the Big Board, while
Nasdaq has a similar grip on
closing auctions for Nasdaq-
listed stocks.
MARKETS
3M
Dow Jones Industrial Average
1 2 3 4
THE WALL STREET JOURNAL.
constituent, added 1.03, or
0.6%, to 169.37, after the
heavy-machinery manufacturer
said revenue rose 18% in 2017,
breaking a four-year streak of
declining sales.
But weakness among shares
of airlines has pressured major
indexes in recent days, even as
Race Is On for $1 Trillion
BY BEN EISEN
Some Wall Street analysts
are betting it won’t be too
much longer before there is a
trillion dollar company in the
U.S. stock market.
The S&P 500 technology
sector is up 39% over the past
12 months, including a bench-
mark-beating 7.1% rise to start
2018. Some of the technology-
focused titans, which are
among the biggest companies
in the S&P 500 by market cap,
are up even more, spurred by
expectations of growing mar-
ket share and profits. Ama-
zon.com Inc. has risen 18%,
Alphabet Inc. is up 12%, and
Microsoft Corp. has climbed
7.9%.
If the stock market keeps
rising at its current pace, it
Apple, maker of the iPhone, has a market cap of $870 billion.
Views on Inflation Push Up U.S. Bonds
BY DANIEL KRUGER
U.S. government-bond
prices advanced, led by gains
in longer-term securities.
The yield on the benchmark
Treasury 10-year
CREDIT note fell to
MARKETS 2.628%, from
2.654% Wednes-
day. Yields fall
as bond prices rise.
Bonds rallied after President
Donald Trump endorsed a
stronger dollar, walking back
Wednesday’s statement by Trea-
sury Secretary Steven Mnuchin,
who said that a “weaker dollar
is good for trade.”
Friday, January 26, 2018 | B11
han, chief market strategist at
TD Ameritrade.
“Energy prices are really
taking off,” Mr. Kinahan said.
“The transportation companies
are going to have to start to
hedge” against rising oil
prices, he said.
In Europe, the Stoxx Europe
600 declined 0.5% after the
European Central Bank left its
policy mix unchanged, reject-
ing an early move to scale
back its monetary stimulus
amid concerns over weak infla-
GLEN STUBBE/MINNEAPOLIS STAR TRIBUNE/ZUMA PRESS
tion and a surging euro. While
ECB President Mario Draghi
said recent volatility in ex-
change rates represents a
source of uncertainty and
could alter how the central
bank proceeds, some analysts
said market participants may
have been expecting more con-
cern.
Asian stocks closed sharply
lower, catching up with
Wednesday’s drop in the dol-
lar. Japan’s Nikkei Stock Aver-
age closed down 1.1%, its big-
gest drop in seven weeks. At
companies such as American the midday break Friday, it
Airlines Group and Southwest was up 0.15%. Hong Kong’s
Airlines reported revenue Hang Seng Index fell 0.9%
gains. Thursday after seven days of
Late Tuesday, United Conti- gains. Early Friday, it was up
nental Holdings disclosed ex- 0.9%.
pansion plans that sparked in-
vestor fears of a fare war
between carriers, helping push Treasury Auctions
shares down on Wednesday.
That continued Thursday, The Treasury Department will
.
with American shedding 1.74, auction $110 billion in securities
ly
or 3.2%, to 53.05, after it re- next week. Details (all with mini-
ported a lower profit from the mum denominations of $100):
year-earlier period due to  Monday: $48 billion in 13-
higher labor and fuel costs, week bills, a reopening of an is-
while Southwest shares slid sue first sold on Nov. 2, 2017,
2.02, or 3.2%, to 60.19. maturing May 3, 2018. Cusip
The Dow Jones Transporta- number: 912796PC7.
tion Average, an index of 20 of Also, $42 billion in 26-week
the largest U.S. airline, railroad bills, dated Feb. 1, 2018, maturing
and trucking firms, including Aug. 2, 2018. Cusip: 912796PS2.
American and Southwest, fell Noncompetitive tenders for
1.6% to extend its fall to three both issues must be received by
straight sessions. 11 a.m. EST Monday and com-
The rally in oil prices has petitive tenders by 11:30 a.m.
raised concerns among inves-  Tuesday: $20 billion in 52-
tors about how airlines and week bills, dated Feb. 1, 2018,
other transportation compa- maturing Jan. 31, 2019. Cusip
nies will cope with higher op- number: 912796PP8.
erating expenses at a time Noncompetitive tenders are
when many already face tight due by 11 a.m. Tuesday; competi-
profit margins, said J.J. Kina- tive tenders, 11:30 a.m.
won’t take long for Apple Inc.,
Alphabet, or Microsoft to ob-
the number of shares out-
standing, so the exact target
tain a trillion dollar market that would send Apple over $1
value, something that has trillion would likely be higher
never happened in the U.S. De- in a year’s time.
pending on how you calculate Google parent Alphabet has
it, it could also be the world’s a market value of $817 billion.
first public trillion-dollar firm. To get to a trillion, the share
Apple is the only U.S.-listed price would have to climb by
company to have topped $900 more than $250 from its cur-
billion in market cap, and it rent level, based on its current
was recently the highest with share count.
$870 billion. Microsoft, the S&P 500’s
The average 12-month price third-biggest company, might
target for the stock among the be considered a dark-horse
37 analysts tracked by FactSet candidate because its market
is $193.50, which would bring cap is just $712 billion. But it
its market cap to just over isn’t out of the realm of possi-
$984 billion based on the bility, according to Canaccord
company’s most recent share Genuity analyst Richard Davis.
count. “A trillion dollars. That’s a
Analysts generally factor in big number,” he writes. “How-
share buybacks when making ever, if you believe, as we do,
their forecasts, which reduce that it is reasonable to expect
MSFT to appreciate between
10-20% annually for the next
five years, you get to the Big T
as early as calendar Q4 2019,
or more like sometime in early
2020.”
And don’t forget Amazon.
Its market cap lags behind a
bit at $664 billion, but isn’t
out of contention. D.A. David-
son analyst Tom Forte this
week called for the stock to
ATYANA MAKEYEVA/REUTERS
rise to $1,800, a particularly
bullish bet on the company,
which is currently at $1,377.95
a share.
That wouldn’t quite get
Amazon to a trillion dollars,
but it would bring the com-
pany much closer.
Mr. Trump’s remarks sent fund manager at the United
the dollar higher and yields Nations Federal Credit Union.
lower a day after the U.S. cur- Responding to the easing
rency had posted its largest inflation concerns, the yield
decline since March 15, spur- on the 30-year Treasury bond
ring selling in bonds. Some in- dropped to 2.891% from
vestors say a weaker U.S. cur- 2.936% Wednesday, its largest
rency could spur inflation by one-day decline since Dec. 27.
raising prices for imports, The 30-year bond is especially
such as oil. Inflation poses a sensitive to rising inflation be-
threat to the value of long- cause it is the Treasury secu-
term bonds because it over rity with the longest maturity.
time erodes the purchasing The 10-year yield had risen
power of their fixed payments. as high as 2.676% during
“If people don’t expect infla- Thursday’s trading, according
tion to pick up, it could be an to Tradeweb, after Mario
attractive” opportunity to buy Draghi, president of the Euro-
longer-term Treasurys, said pean Central Bank, said it still
Christopher Sullivan, a bond- plans to pull back from stimu-
Banks Put
Obstacles
On Path
To Bitcoin
BY ANNAMARIA ANDRIOTIS
AND PAUL VIGNA
Some banks and credit-card
companies have begun re-
stricting customers’ purchases
of bitcoin, shutting down a
popular way to buy the vola-
tile digital currency.
This month, Capital One
Financial Corp. decided it
would no longer let its cus-
tomers use credit cards it is-
sues when buying bitcoin or
other cryptocurrencies such as
ether “due to the limited
mainstream acceptance and
the elevated risks of fraud,
loss and volatility.” The bank
said it would “regularly evalu-
ate the decision as cryptocur-
rency markets evolve.”
The firm’s decision followed
Discover Financial Services’
move in 2015 to effectively
prohibit purchases of digital
currencies with its cards.
Bank of America Corp. al-
lows bitcoin purchases with
the credit cards it issues. “At
this point there is nothing that
would block a transaction, but
we are carefully reviewing our
policy,” said a bank spokes-
woman.
Citigroup Inc., which al-
lows bitcoin purchases with its
credit cards, is also reviewing
its policy, according to a per-
son familiar with the matter.
TD Bank, the U.S. unit of To-
ronto-Dominion Bank, said
that as a result of security
measures some bitcoin trans-
actions aren’t being processed.
The moves could put a crimp
in one way to buy bitcoin,
which soared 1,375% last year
and attracted widespread new
interest before falling about
20% this year. Despite bitcoin’s
popularity, some card compa-
nies are expressing concerns
1,375%
How much cryptocurrency bitcoin
soared in value last year.
about consumers using credit
cards to buy the currency.
Funding investments with
credit cards isn’t usual in tra-
ditional markets. Among bro-
kerage firms, Charles Schwab
Corp. and TD Ameritrade
Holding Corp. don’t allow it,
and E*Trade Financial Corp.
lists several funding methods
it accepts on its website, but
doesn’t mention credit cards.
With bitcoin, some 18% of
buyers funded purchases with a
credit card, according to a sur-
vey released in December from
lending marketplace LendEDU.
Of those, 22% said they didn’t
pay off their credit-card bal-
ance after the purchase. Nearly
90% of that group expected to
eventually pay off the balance
using profits from the invest-
ment, the survey found.
Funding those investments
with debt only adds to the risk
of investing in bitcoin. The
volatile asset could result in
card holders being underwater
before the bill comes due.
Investors need to cover
what often are double-digit-
percentage interest rates on
credit cards if they don’t pay
the bill in full, in addition to
fees on the bitcoin transac-
tions. To offset those costs,
borrowers need bitcoin to rise
substantially in value. That
can increase the chances of
borrowers not paying credit-
card bills if they owe more on
the asset than it is worth.
lus policies—which have
helped drag down yields
across many developed mar-
kets—despite the recent
strengthening of the euro.
AUCTION RESULTS
Here are the results of Thursday's Treasury auction.
All bids are awarded at a single price at the market-
clearing yield. Rates are determined by the difference
between that price and the face value.
SEVEN-YEAR NOTES
Applications $80,601,579,200
Accepted bids $32,115,171,200
" noncompetitively $17,610,600
" foreign noncompetitively $0
Auction price (rate) 99.585928
(2.565%)
Interest rate 2.500%
Bids at clearing yield accepted 26.08%
Cusip number 9128283V0
The notes, dated Jan. 31, 2018, mature on Jan. 31,
2025.
 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.

B12 | Friday, January 26, 2018 THE WALL STREET JOURNAL.

Forecasts Heat Up Natural-Gas Prices
Recent surge follows predictions of another deep freeze, which could strain already depleted supplies; shift catches some speculators off guard
BY ALISON SIDER
The threat of another blast
of bitterly cold arctic air bear-
ing down on the U.S. is send-
ing natural-gas futures prices
to their highest level in more
than a year.
Traders and investors who
had bet on falling natural-gas
prices are being squeezed and
have had to scramble to buy
back contracts they once sold to
close out their positions, push-
ing prices this week to their
highest level since late 2016.
The February contract gave
up some of those gains Thurs-
day, falling 1.8% to $3.4470 a
million British thermal units.
Natural gas for March deliv-
ery—which will become the
front-month contact next
week—rose 0.6% to $3.099 per
million BTUs.
The surge came as weather
forecasts predicted that the
warm temperatures in the lat-
ter part of January will
abruptly give way to another
wave of intense cold from the
Midwest down to Texas and
eastward, as a high-pressure
ridge over Alaska appears set
to send arctic air down
through North America.
“The market was antsy,
waiting for that first clear sign
MARKETS
recently at its lowest for this
600 billion cubic feet Difference between natural-gas time of year since 2014.
stockpiles and the five-year average level “Storage is low—precari-
ously low,” said Bill Perkins,
400 who runs the natural-gas-fo-
cused fund Skylar Capital
Management LP.
200 That has some end users,
such as utilities, trying to
stock up so they have enough
0 gas available to keep their cus-
tomers’ homes warm if the
predicted cold arrives, ana-
lysts and traders said.
–200
Mr. Perkins said he is cau-
tiously bullish on gas prices,
“with both eyes on the
–400 weather.”
The latest shift in weather
forecasts has caught some
–600 speculators flat-footed. Win-
Jan. Feb. March April May June July Aug. Sept. Oct. Nov. Dec. Jan. ters have been mild the last
2017 ’18 two years, leading to tepid de-
mand for heating fuel. At the
The spike in demand has helped ...and once-bearish investors have shifted ...but forecasts of rising production same time, natural-gas pro-
lift prices... into bullish bets... could cap the rally. duction has been surging to
Front-month natural-gas price Speculative net position in U.S. natural gas U.S. gas production per day new records—something that
investors believed would keep
$4.00 a million BTUs 300 thousand contracts of 10,000 mmBTUs 85 billion cubic feet the market well supplied even
projected in cold weather.
John Woods, president of
JJ Woods Associates and a
3.50 200 80 Nymex trader, said he was
taken aback by how high
prices rose. He sold when
3.00 100 75 prices rose to around $3.22 to
$3.25 per million BTUs.
“That one hurt,” he said of

.
of cold. [Tuesday] it arrived,” missing the rest of the run-up.

ly
said Jacob Meisel, chief 2.50 0 70 At the end of 2017, hedge
weather analyst at Bespoke funds and other money man-
Weather Services. agers were betting that natu-
The cold could strain natu- on ral-gas prices would fall: Short
2.00 –100 65
ral-gas supplies, which have bets on natural gas outnum-
already been depleted by re- 2017 2018 2017 ’18 2017 ’18 bered long ones by more than
cord-low temperatures across Sources: EIA (stockpiles, production); WSJ Market Data Group (gas price); Commodity Futures Trading Commission (contracts) THE WALL STREET JOURNAL. 50,000 contracts. Natural-gas
much of the country early this prices fell to a 10-month low
us l,

month. A severe winter storm
known as a “bomb cyclone”
hammered the East Coast in
the first days of the year.
Then, in the Southern U.S.,
cubic feet was withdrawn from
storage, according to the U.S.
al a
e
Energy Information Adminis-
tration. The demand, coupled
with infrastructure bottle-
ci on
Global Platts.
That is prompting some
usual movements of superchilled
liquefied natural gas, making
shipments from as far away as
port facility, an Engie spokes-
woman said—the first time
the U.S. has imported gas from
Russia, according to U.S. De-
partment of Energy data.
Trading LLC.
The amount of natural gas
in storage is 17.5% below the
five-year average, after another
big withdrawal from invento-
of $2.598 a million BTUs in
late December. Since then,
though, these investors have
become more bullish.
What market participants

snow, sleet and freezing rains
scuttled flights, canceled
school days and created haz-
ardous driving conditions.
That resulted in record de-
necks, prompted a swift run-
up in natural-gas prices on the
spot market in some places. At
a New York hub, for example,
prices rose as high as $175 per
er rs
Siberia look economical.
Engie SA bought a cargo of
LNG from a facility in the U.K.
to supplement the regular sup-
ply at its Boston import termi-
Another wave of bitter cold
could prompt a repeat, ana-
lysts said. “The concern is in
February, deliverability gets
even more constrained versus
ries last week. Supplies are
particularly tight in the South
and the East, where tempera-
tures are expected to plunge
early in February. The amount
weren’t thinking about was
demand, said Kyle Cooper, an
analyst at Ion Energy Group.
“The whole mantra has
been supply, supply, supply,”

mand for gas: During the first million BTUs during trading nal. The cargo likely includes the January event,” said Joel of gas sitting in the Southeast’s he said. “Mother Nature just
week of the year, 359 billion on Jan. 5, according to S&P gas from Russia’s new LNG ex- Stier, a trader at StierBull underground salt caverns was squeezed you again.”

HEARD ON THE STREET

m e
m rp

Email: heard@wsj.com FINANCIAL ANALYSIS & COMMENTARY WSJ.com/Heard

Spinoffs Suit Health-Care Sector

co Fo

OVERHEARD Intel Results

When everyone is buying,
often the best strategy is to
be a seller.
Deal making in the health-
care industry is booming,
with more than $140 billion
in announced deals in the
past three months, according
to Dealogic. This week, drug-
makers Sanofi and Celgene
branded pharmaceutical British soccer clubs
Don’t Have
Spin and Win business, AbbVie, in 2013.
Market value of AbbVie and Abbott Laboratories Today the companies are
worth a combined $270
promote gambling too much
in the eyes of some fans and
politicians. Nine of the 20
Any Flaws
$175 billion billion, outpacing the S&P top-league clubs already There are still questions
AbbVie 500 over that period. advertise betting companies about the impact of security
150 Animal-health specialist on their team jerseys. flaws in Intel’s chips, but it
Zoetis has outperformed One of the Premier is still hard to get around us-
125 Pfizer, its former parent, by League’s top clubs, London- ing those chips.
nearly 100 percentage points based Arsenal, is taking That was readily apparent
n-

100
announced acquisitions for a and beaten the S&P 500 over things further by promoting a in the company’s fourth-
combined total value of ap- the past five years. new cryptocurrency designed quarter results delivered late
75
proximately $20 billion. Today’s health-care to be used solely for online Thursday. Revenue rose 4%
The latest news triggered industry is full of business betting and casino games. year over year to a record
no

a furious rally in
biotechnology stocks, in
large part because both
acquisitions came at steep
takeover premiums.
Company executives have
a choice: They can join the
rush of suitors chasing
relatively scarce high-quality
assets, and run the risk of
destroying shareholder value
by overpaying. Or they can
pare their own portfolio by
spinning off assets and use
that rush of suitors to their
shareholders’ benefit.
There has been about $118
billion in total health-care
spinoffs since 2013,
according to Dealogic. That
marks a small fraction of
total deal volume over that
50
25 Weekly
2013 ’14
Source: FactSet
period, which has exceeded
$2 trillion. But the recent
market performance of those
spinoffs suggests the tactic
should be used more often.
Consider Bioverativ,
formerly the hemophilia
division of Biogen, which
Sanofi agreed to buy this
week for $11.6 billion, or
$105 a share. Just over a
year ago Biogen, which is
focused on neurological
drugs, decided to spin off
Bioverativ to shareholders at
about $45 a share so the new
Abbott Laboratories
’15 ’16 ’17
THE WALL STREET JOURNAL.
company could focus on its
very different and fast-
changing market. Baxalta,
formerly the drug division of
Baxter International, was
spun off and eventually sold
to Shire in 2016. Baxalta
shareholders earned a
roughly 45% return in its six
months as a public company.
Newly spun-out companies
don’t have to find a buyer to
succeed; Abbott
Laboratories had a market
value of about $100 billion
just before it spun off its
combinations that might
make more sense under
separate roofs. Should
’18 Novartis, for example,
continue to house its generic
drugs business alongside its
innovative medicine unit?
Should Merck & Co. be
focused on animal health in
addition to its vast human
drugs business? Will Pfizer,
which has previously decided
against splitting into two
businesses focused on
branded and off-patent
drugs, reconsider?
This year, companies that
are willing to ask themselves
these tough questions have a
strong chance of standing
out from the crowd.
—Charley Grant
Cashbet Coin is raising
money through an initial coin
offering, which isn’t subject
to U.K. financial regulation.
British regulators warned last
year that such coins are very-
high-risk investments.
It is meant at some point
to be usable for betting with
Cashbet, an Oakland, Calif.-
based online gambling
company licensed to operate
in the U.K.
Arsenal said their
partnership “does not exist to
encourage fans to bet with
CashBet Coin.” Though it
added, “As with all official
club partners, we look
forward to working with
them.”
$17.1 billion, with adjusted
operating income surging by
21% to $5.9 billion. Both
came in well ahead of Wall
Street’s forecasts.
But there is a cost to that
as well. Intel’s position as a
leading-edge chip manufac-
turer is expensive to main-
tain, especially as rivals such
as Samsung boost capital
spending. Intel spent a re-
cord $11.8 billion on capital
expenditures in 2017 and ex-
pects to part with about $14
billion this year, though it
says prepayments from
memory-supply agreements
should offset that by about
$2 billion.
Intel’s shares jumped as
much as 5% just following
the report, a sign that inves-
tors find the rising costs

Clariant Activists Who Pledged Long-Term Plan Back Out
When two U.S.-based
activist investors broke up a
$15 billion chemical industry
merger between Switzer-
land-based Clariant and U.S.
rival Huntsman last year,
they claimed to be in it for
the long haul—and that they
had better plans for
Clariant’s future.
Just three months later,
they have turned tail and
sold their roughly $2.5
billion, nearly 25% stake in
Clariant to Saudi Arabia’s
state-backed chemicals
company, Sabic, which is key
to the country’s efforts to
diversify its economy away
from dependency on crude
oil sales.
manageable. To that end, the
latest results were a good
sign, especially in the data-
pany they have jointly own- their demands for three francs. center segment, in which In-
Up and Out ed since 2003. board seats and an indepen- For Clariant, the hope will tel launched a major upgrade
Clariant share price But Clariant’s shares dent investment bank review be that their new share- to its line of Xeon server
plunged 10% on the news of options for the business. holder proves friendlier and processors. That lifted reve-
30 Swiss francs after Sabic said it had no Their threat to call an more cooperative than the nue in the group to a record
28 Activists reveal plans to pursue a takeover. extraordinary general last. $5.6 billion.
26 5% stake The U.S. activists—the meeting for a showdown It said the two companies The company also sees
24 Standard Industries family with the company late last would soon begin talks to overall revenue rising 4% for
22 investment arm and a hedge year then went unfulfilled “explore ways to create 2018, above the 3% gain ana-
fund run by Carl Icahn and White Tale has been value”—a corporate holding- lysts predicted. That is a
20
protégé Keith Meister, quiet since. pattern phrase for when you sign that Intel doesn’t expect
18 Corvex—worked in tandem While they didn’t get their don’t know what to expect. a major business impact
2017 ’18 under the name White Tale. way, the activists will have For Clariant’s other from the Spectre and Melt-
Note: One Swiss franc=$1.0579 They scuttled the Huntsman made a healthy profit: They shareholders, any hopes of a down security flaws in its
merger by aggressively bought most of their shares takeover at a nice premium chips reported this month.
Clariant’s management building a stake of more of Clariant at prices between look dead for now—but then That could end up proving
was told only just ahead of than 20% by the end of about 21 Swiss francs and 25 the trouble with White Tale’s optimistic if more problems
the sale, but it may take October from less than 5% Swiss francs (24 cents and strategy is that such an arise. But for now, Intel
comfort in knowing Sabic as four months earlier. 26 cents). Just before the outcome was always unlikely seems to have stacked its
a major client and through However, after the deal sale to Sabic, the stock hit a anyway. chips in the right places.
the process-licensing com- collapsed, Clariant rejected 15-year high of more than 29 —Paul J. Davies —Dan Gallagher
 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.

MANSION

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

© 2018 Dow Jones & Company. All Rights Reserved. THE WALL STREET JOURNAL. Friday, January 26, 2018 | M1

1st
Place

The House of the Year

FROM TOP: DANCING WIND RANCH (4); LINDA CUSMA (LAKE PLACID); TRAVIS ROWAN (MAUI)
.
Readers pick their favorite Mansion-featured home of 2017: A sprawling, windswept

ly
ranch in Montana that’s still on the market for $12 million; 121,544 votes cast in poll.
on
us l,
al a
e
ci on
er rs
m e

THE WINNER Tamra and Jay Call created a working ranch from three properties purchased in the late 1990s, then added a home and other buildings. Top, the 8,000-square-foot main house and fishing
pond. Above, from left, the home’s great room, a glass corridor and a barn near the home that is used for horses and for entertaining. To read more about Dancing Wind Ranch, please turn to page M3.
m rp

Australia’s Coral Sea was the most popular pick.
BY LEIGH KAMPING-CARDER
All three U.S. properties are still for sale, a re-
minder of the relative slowdown in the high-end
co Fo
Fewer wealthy homeowners are looking to
trade up versus 2014 and 2015, when many
bounced back from the recession and invested in

AFTER A YEAR OF political drama and weather
disasters, a secluded mountain retreat seemed
just the answer for House of the Year voters.
In the contest, readers pick their favorite
homes from among the winners of the year’s
previous House of the Week polls, which typi-
cally feature three homes for sale each week. In
total, 121,544 votes were cast.
The top U.S. home was a ranch in Montana.
An Adirondacks getaway was in the second spot,
while a Hawaii mansion came in third. Outside
the U.S., a Mediterranean-inspired spread on
n-
home market. In 2017, the most expensive 5% of
homes spent 116 days on the market, 5.35% lon-
ger than the year before, according to Real-
tor.com. (News Corp, owner of The Wall Street
Journal, also operates Realtor.com under license
from the National Association of Realtors.)
“What we define as luxury is actually becom-
ing pricier,” said Javier Vivas, director of eco-
nomic research at Realtor.com, noting that in
2017 the cutoff was $804,000, up 5.14% from the
year before. That has shrunk the pool of buyers,
keeping homes on the market longer, he said.
more expensive real estate, said Ralph McLaugh-
lin, chief economist of listing website Trulia.
At the same time, some areas—particularly in
California, Hawaii and Colorado—are seeing
double-digit price gains and swift sales, thanks
to a thriving economy on the West Coast and
residents’ desire for ski homes and vacation
properties, Mr. Vivas said.
“There’s been a bit more inventory than in
previous years,” said Joel Goodrich, an agent in
San Francisco with Coldwell Banker Global Lux-
ury, “but things are selling.”

2nd 3rd
no

Place Place
An 11,000-square-foot A 13,422-square-foot
lakefront retreat in Lake contemporary beachfront
Placid, N.Y., that’s on the home on Maui that’s listed
market for $9.2 million M4 for $28 million M4

A LUCKY YEAR INSIDE

FOR CHINESE
SHAYAN ASGHARNIA FOR WSJ

BUYERS
Some real-estate agents are reporting a
reaction to the auspicious year of 2018.
MIDWESTERN SON
Actor Nick Nolte’s
Iowa childhood M5
BY NANCY MATSUMOTO

CHINESE WILL soon be cele- real-estate agents are report-

brating the Year of the Dog.
It could also be the Year of
the Deal.
It has long been known in
ing a reaction to the auspi-
cious year of 2018: The num-
ber 18, when spoken out loud
in Cantonese, sounds like the
DESIGNSTOR (RENDERING)

real-estate circles that an ad- phrase “I want to be very

dress or price that includes
the number eight—which
when spoken in Cantonese
sounds like the word for
“prosperity”—can make a
property more popular with
Chinese buyers. Now some
wealthy,” says Kelly Xie, a
Toronto-real estate agent for
Century 21.
Janet Wang, a real-estate
agent with the Corcoran IT’S COMPLICATED
Group in New York City, says A PROSPEROUS ADDRESS A rendering of Toronto’s 8 Cumberland Street; the number eight Quirky customers
Please turn to page M6 when spoken in Cantonese sounds like the word for ‘prosperity.’ can muddle a sale M7
 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.
M2 | Friday, January 26, 2018 NY
A Stake in a To-Be-Built New York
Penthouse Asks $35 Million
Fashion designer Elie Tahari
spent more than 12 years se-
curing the rights to build an
additional two stories atop his
penthouse on New York’s Fifth
Avenue. Now that he’s got ap-
proved designs, he’s looking
for a partner willing to invest
$35 million to complete con-
10605 FIFE AVENUE struction.
Mr. Tahari has secured the
3 BEDROOMS 4 FULL AND 1 HALF BATHS $1,890,000
necessary permission from
New York’s Landmarks Preser-
Located on a prominent corner, the main living rooms in this charming
home are situated on the second floor maximizing light and views.
vation Commission and the
Reminiscent of architecture seen in historic Charleston, the porch Department of Buildings, and
spans the entire length of the house and features open rafters, detailed has just begun building the
millwork and a signature haint blue ceiling. addition, said real-estate agent
Benjamin Benalloul of Town
Residential, who with col-
leagues Loretta Shanahan-
Bradbury and Victoria Terri-
Cote is representing the
offering. Once the project is
completed, the partners would
either sell the entire project, or
one would buy out the other’s
50% interest, Mr. Tahari’s
spokesman said.
The design for the finished
772 388 8400 WINDSORFLORIDA.COM penthouse, by Rick Cook of
LUXURY REAL ESTATE DESERVES A ALONZO MOURNING’S ONETIME MIAMI HOME GOES ON THE MARKET
LUXURY AUCTION
The onetime Miami home
of Basketball Hall of Famer
Alonzo Mourning is going
on the market for just un-
on der $12 million.
Mr. Mourning
bought the Coco-
nut Grove, Fla.,
us l,
house in 1996,
the year he
signed a seven-
al a
e
year contract with
the Miami Heat for
ci on
FEBRUARY 17TH | KIAWAH ISLAND, SC more than $100 mil-
lion. Mr. Mourning, who
Previously $5.9M. Now Selling spent much of his 15-year NBA
career with the Heat, later
At or Above Only $1.75M!
moved to a larger home in
er rs
Coral Gables, selling the Coco-
nut Grove house for $6 million
in 2009. The current owner is
Venezuela native George Ther-
m e
m rp
ACTOR JOSH HARTNETT SELLS HIS TRIBECA PENTHOUSE
co Fo
MARCH 3RD | COLORADO SPRINGS, CO
Previously $4.25M. Now Selling
WITHOUT RESERVE!
800. 262.5132
PlatinumLuxuryAuctions.com
SC property listed and offered for sale by Atlantic Properties of the Lowcountry (Lic# 7241). Listing agent Mary Lou Wertz
(Lic#82632).BidcallingbySouthCarolinaAuctioneerChrisPracht(Lic#156).COpropertylistedandofferedforsalebyLIV
Sotheby’s International Realty (Lic# EC.040014390) and Action Team Realty (Lic# EC000073240). Listing Brokers Elaine
Stucey (Lic# EA.001326922), Brent Hawker (Lic# ER.000073240) and Todd Hawker (Lic# FA.040047527). Platinum
Luxury Auctions LLC is performing auction-marketing services as part of these transactions, and is not providing any real
estatebrokerageserviceswhereprohibited.Sotheby’sInternationalRealty,theSotheby’sInternationalRealtylogoandaffiliate
n-
logos are registered (or unregistered) service marks used with permission. Neither Sotheby’s, Sotheby’s International Realty
Affiliates LLC, nor any of their affiliated companies is providing any product or service in connection with this event other than
as required by applicable law.
no
Bronxville, NY
A Lifestyle As
Unique As You.
80 Pumpkin Cay • $4,200,000 • (1437)
Beautifully renovated home in the privacy of
Just listed
Ocean Reef Club’s garden home enclave
• 3 Bedrooms, 3 1/2 Bathrooms
• Rebuilt with a Key West / Bahamian Design
• Spacious Living Area Overlooking The Water One of Bronxville’s most beautiful homes.
• Large Gourmet Kitchen with Custom Cabinetry
• Easy Access to Open Water from Private 40’ Dockage Its glorious 4900 sq ft. interior is defined by
From slips to beautiful oceanfront estates, Ocean extraordinary style, design and comfort. Walk
Reef Club offers an array of residential choices to to renowned school, village shops and train
complement your lifestyle.
from a most coveted location. MLS# 4801503
To learn more about this Asking $4,800,000
private club community,
call 305.367.6600 or visit
OceanReefClubLiving.com Rita Steinkamp
NEW HOMES • VILLAS • CONDOMINIUMS
Houlihan Lawrence Bronxville Brokerage
M A R I N A D O C K S • V I L L A & H O M E R E N TA L S rsteinkamp@houlihanlawrence.com
THE WALL STREET JOURNAL.
MANSION
PRIVATE PROPERTIES
CookFox Architects, includes
two glassy floors perched atop
the currently 21-story, 1950s-
era cooperative building lo-
cated between 67th and 68th
streets in the Upper East Side
Historic District. The finished
product, seen in a rendering
here, would comprise five bed-
rooms, 7,500 square feet of
interior space and 5,500
square feet of terraces with
views of Central Park. “It’s al-
most like you’re dropping an
Apple store on a co-op build-
ing on the Upper East Side,”
Mr. Benalloul said.
The top level of the pent-
house would be dedicated to a
master suite with its own liv-
ing room, en-suite bathroom
and private landscaped garden.
Mr. Tahari bought his first
penthouse apartment in the
building for $325,000 in 1979,
public records show. After his
neighbor died, he bought that
unit for an additional $4.2 mil-
lion in 2011.
—Katherine Clarke
.
miotis, who bought the house
ly
from a subsequent owner in
2015 for $7.14 million.
The waterfront man-
sion has seven bed-
rooms and an ele-
vator and spans
nearly 11,000
square feet,
said listing
agent Bo
Mastykaz of
Douglas Elliman
Real Estate. Located
in a gated community,
the house sits on roughly half
an acre on Biscayne Bay. Ac-
cording to Mr. Mastykaz, the otis, who owns a marketing ovated the house, Mr.
FROM TOP: COOKFOX ARCHITECTS (RENDERING); DOUGLAS ELLIMAN; GETTY IMAGES (MOURNING); STRIBLING
house has high ceilings and company that services the cos- Mastykaz said. The couple en-
doors that accommodated the metics industry, and his wife, joy renovating houses, Mr.
tall basketball player. Corina Hernandez de Thermi- Mastykaz said.
Current owners Mr. Thermi- otis, an artist, extensively ren- —Candace Taylor
Josh Hartnett has sold his dressing area and a glass-tiled
Tribeca penthouse for $3.55 bathroom. A wide spiral stair-
million, according to two people case connects the apartment to
with knowledge of the deal. a 940-square-foot roof deck.
The approximately 1,965- The “Pearl Harbor” and
square-foot corner unit has a “Black Hawk Down” actor, 39,
wall of windows with views of purchased the unit for $2.4
the World Trade Center. The million in 2004, property re-
space is configured as a one- cords show. A spokeswoman
bedroom unit; it could easily for Mr. Hartnett declined to
accommodate additional bed- comment. The listing agent,
rooms, according to the listing. Pamela D’Arc of Stribling &
The bedroom has a large walk- Associates, also declined to
in closet with a windowed comment. —Katherine Clarke
 See more photos of notable homes at WSJ.com/Mansion.
Email: privateproperties@wsj.com
Deer Valley: Brand New – Spectacular View – Ski In/Ski Out
8 Bedrooms – 12 Bathrooms
11,003 Square Feet
Contemporary Design
In the most private, prestigious neighborhood in Park City:
Red Cloud
$12.9M
Website: http://12RedCloud.com/eblast/eblast.html
Steve Jury
Associate Broker
Keller Williams Real Estate / Park City



Equal Housing Opportunity 914-646-5196
 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.

THE WALL STREET JOURNAL. Friday, January 26, 2018 | M3

HOUSE OF THE YEAR

Readers’ Dream House: a Montana Ranch

The property offers an 8,000-square-foot main home and cattle; it is listed for $12 million

BY SARAH TILTON

DANCING WIND, a working ranch

comprising about 1,750 acres, is
the winner of WSJ.com’s annual
House of the Year poll, capturing
74.82% of the votes in the match-
ups with other properties.
Tamra Call and her late husband,
Jay, spent two years looking for a
ranch before finding this property in
Livingston, Mont. “We had some cri-
teria. We wanted trees, we wanted
water, we wanted close proximity to
the wilderness,” Mrs. Call, 64 years
old, said in an interview with The
Wall Street Journal last year.
While the property was popular
with readers, it has yet to find a
buyer. It has been on and off the
market since it was first listed in
2010 with an asking price of $27
million. In 2016 it was relisted
with an asking price of $15 million.
In 2017 the price was further re-
duced, to $12 million, where it still
stands. Jim Taylor, of Hall and
Hall, has the listing.
The couple created the ranch
from three purchases in the late
1990s, then spent more than the
current asking price on the im-
provements, said Mrs. Call. It took
IN LIVINGSTON The Calls chose a mountain style for their three-bedroom stone house. Above, the main home’s kitchen ter, utility sheds, corrals and a calv-
and great room, and a hangar at the nearby airport that can be part of the sale. Below, the ranch-manager’s house. ing barn with a veterinary room.
The ranch has 235 cows and 12
bulls, said Mrs. Call in a recent in-
terview, but it no longer has any
1st calves—and just one of 10 llamas
remains. The ranch has roughly
Place 938 acres of grazing land, 495
acres of irrigated meadows and 311
acres of forest.
Moose, deer, bear and elk pass
through the property, she added.
“It’s very peaceful,” Mrs. Call said.
The property is about 15 miles to
the airport in Livingston. A hangar
at the airport can be negotiated as
part of the home sale. It is about a
35-minute drive to Bozeman.
Mr. Call, an entrepreneur, was
the founder and chief executive of-

.
two years to build the more than ficer of the oil company Flying J.

DANCING WIND RANCH (4)

ly
He died in 2003.
Mr. and Mrs. Call named the
METHODOLOGY property Dancing Wind Ranch after
on watching the wind blow the grass
Tuesday through Thursday each in a circular motion. “There are
week, WSJ editors choose a dis- spots on the ranch that are just
tinctive property for sale to fea- breathtaking,” said Mrs. Call. “Par-
us l,

ture as the House of the Day at
WSJ.com/HouseoftheDay. On Fri-
days, readers vote for their favor-
ite. From Dec. 18 to Jan. 2, read-
ers voted among the winners from
8,000-square-foot main house,
during which time they lived in a
mobile home on the property. The
al a
e
mobile home is now rented out. It
has its own small barn that was
ci on
bedrooms, four full baths and two
half-baths. The great room includes
a bar, a pool table and a poker ta-
ble. More than 2,100 square feet of
stone patios capture the views of
for parties, including a ranch hand’s adise Valley is so beautiful and
wedding, Mrs. Call said. where the ranch sits you can see
The ranch’s headquarters include nearly the whole valley.”
a 2,800-square-foot, four-bedroom Mrs. Call is selling because she
manager’s house and a 2,700-square says she spends more time in Ari-

the last three weeks of 2016 and
the first 49 weeks of 2017 in a
series of head-to-head matchups.
made into an office and a larger
barn that the couple refurbished.
The Calls chose a mountain style
for the stone house, which has three
er rs
Paradise Valley. A pond in front of foot, four-bedroom house that could zona. “It would be good to have
the house is used for fly fishing, be used for guests or an assistant somebody with a young family up
Mrs. Call said. Another barn, origi- manager. It also has an equipment there. It’s meant for families. It’s
nally built for horses, has been used shed with room to store a helicop- time to move on for me.”

AUSTRALIAN WINNER
m e

A secluded, 28,000-square-foot Queensland mansion, sold in

m rp

November, got the most votes in the poll of any home outside the U.S.

ditional bathrooms, a cli- the market. Most recently it

BY LEIGH KAMPING-
co Fo

mate-controlled wine room, was listed with Mark Beale

CARDER
a swimming pool overlook- of Ray White Whitsunday
QUEENSLAND SOTHEBY’S INTERNATIONAL REALTY

ing the Coral Sea, a helipad and Carol Carter of Queens-

AN ISOLATED MANSION in
Queensland, Australia, fea-
tured in May, was the most
coveted House of the Year
outside the U.S., winning
67.2% of the votes in the
home matchups.
Known as Mandalay
House, the house is 28,000
square feet, with seven en
and a private marina.
Inspired by Mediterranean
palaces, property developer
and yacht importer Neil
Murray spent six years se-
curing approvals and build-
ing the vacation home.
He initially listed it for 25
million Australian dollars, or
about US$19.96 million. It
n-
land Sotheby’s International
Realty. Mr. Murray declined
to comment.
The property sold in No- MANDALAY
vember to a Sydney busi- HOUSE
nessman and his family, who The home has
plan to use it as a vacation seven en suite
home, listing agents said. bedrooms and a
The sale price wasn’t dis- pool overlooking
closed, but the last asking the Coral Sea.

suite bedrooms and two ad- spent almost three years on price was $13.6 million.
no
 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.

M4 | Friday, January 26, 2018 NY THE WALL STREET JOURNAL.

HOUSE OF THE YEAR

Lakefront Retreat 2nd

Place

In New York’s
Adirondacks
In second place, a golf entrepreneur’s
home in Lake Placid features views of
Mirror Lake; listed for $9.2 million

BY EMILY NONKO

JOHN AND SANDRA TAYLOR were

frequent visitors to Lake Placid,
N.Y., before deciding to build a va-
cation home there.
They wanted a timeless aesthetic,
so “that you can’t tell if it was built
yesterday or 100 years ago,” Mr.
Taylor said last year in an interview
with The Wall Street Journal.
The 11,000-square-foot, three-
story home was featured as a House
of the Day in August and came in
second in the House of the Year
voting. It received 67.32% of the
picks in competition with other
homes. It is still on the market,
with an asking price of $9.2 million.
The couple spent two years on
its construction, hiring Andrew
Chary as the architect and Ann

.
Stillman O’Leary as interior de-

ly
signer. Artisans were brought in to
custom-design the home’s parquet
floors and iron staircase railings.
“Sandra and I had some of the on
most fun couple years of our life
building this house,” Mr. Taylor
said.
us l,

Mr. Taylor is manager of the

Taylor Made Group, a supplier to
the recreational marine industry,
al a
e

LINDA CUSMA (2)

and boating is an element of the
property.
ci on

Gardens and walkways lead down

a hill to a dock with an enclosed
boat house. Floor-to-ceiling win- BUILT FOR BOATERS The Taylors spent two years building their 11,000-square-foot, three-story home to have wide water views.
dows frame views of Mirror Lake,
adjacent to Lake Placid. A glass ele- at the house and winters in Flor- Dominic J. S. Longcroft, the list- ers are looking at the property as back to purchasing properties far
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vator also offers waterfront views. ida, decided to sell in favor of a ing agent with Berkshire Hathaway a vacation home. away from big cities,” Mr.
The Taylors, who spend summer smaller home. HomeServices, says potential buy- “We’ve seen a swing in interest Longcroft says.
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Darren Marotta +1 917-575-6361
The owner, a retired real-estate investor, has moved next door;
the Hawaii property remains on the market for $28 million

million. Josh Jerman, Dave buy the furniture, and an

BY SARAH TILTON
Richardson and Neal Norman artist from San Diego cre-
of Hawaii Life Real Estate ated murals throughout the
WHEN CHARLES “Kip” Brokers share the listing. house. “I had big rooms and
Miami-CoconutGrove,FL: Aspectacularlyfinishedunitwithinthe Miami-Coconut Grove, FL: An opportunity to remodel or build Thieriot was looking to buy Mr. Thieriot, a retired big walls and lots of white
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Engel & Völkers Miami Coral Gables Engel & Völkers Miami Coral Gables
he had found his home the $10.5 million for the contem- creative here,’ ” he said.
Victor Olaniel & Matthew Elliott +1 305-962-8713 Angel Nicolas & Victor Olaniel +1 305-336-0916 moment he saw it. porary beachfront home on He said he spent another
“I went and looked at it the island of Maui in June couple of years decorating
and said, ‘This is a wonder- 2000. the roughly 13,422-square-
ful place.’ I saw it on a “I walked through the foot home, looking “all over
Wednesday, I bid on Thurs- house and I said, ‘I know Maui” for pieces.
day and the owner accepted what to do with this house,’” The house rests on slightly
my bid on Friday,” Mr. he recalled. Mr. Thieriot, more than half an acre on
Thieriot said in an interview now 70 years old, also was Keawakapu Beach, and is un-
Miami, FL:  #    & * # * Savannah, GA: Magnificent historic mansion overlooking in April, when the home was president of the cable televi- usually close to the beach, he
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Engel & Völkers Miami Engel & Völkers Savannah
sion of the Chronicle Pub- sand. It has three ocean-view
Irving Padron & Silvia Yaniz +1 305-204-1900 Richard Mopper +1 912-663-5500 close third—with 65.62% of lishing Co., based in San master suites, as well as five
the matchup votes—in the Francisco, which his family guest rooms and caretaker’s
House of the Year poll. It is once owned. quarters. There are 10 full
still for sale, listed for $28 He said he went to Bali to baths and two half-baths.
“I filled it with friends. I’d
come to Hawaii and have lots
of guests come,” he said. He
divided his time between San
Holladay, Utah: $  %# 3 
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Francisco and Hawaii.
# $  #   
# *  %#   waterfront residences. Under construction and slated for completion in Mr. Thieriot said he was
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Engel & Völkers Park City Engel & Völkers Stuart
Jody Kimball +1 801-867-1101 John Gonzalez +1 772-494-6999 become quieter. He has
moved to a smaller house.
evusa.com “It’s a funny situation,” he
said in a recent interview.
“The house that I use is
right next door. Not only do
I want to sell the house, I
want to sell the house to
©2018 Engel & Völkers. All rights reserved. Each brokerage independently owned and operated. All information provided is deemed reliable but is not guaranteed and should be


                     ! "
BUILT TO ENTERTAIN The house has three ocean-view master people who are going to be
suites, five guest rooms, 10 bathrooms and two half-baths. good neighbors.”
 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.
THE WALL STREET JOURNAL.
BOSTON, MASSACHUSETTS
Renovated, 4-level custom home on Commonwealth
Ave. with direct elevator, 13 rooms, 5+ BRs, 6.2
baths, high ceilings, gym, media room, garden & 2
direct access parking spaces. $12,250,000
Michael Harper, Sales Associate
C. 617.480.3938
WESTPORT, CONNECTICUT
The ultimate modern farmhouse, featuring resort-
worthy entertaining spaces, walls of glass, collector
garage, geotherm, elevator, cottage & cabana.
www.73OldHillRoad.com $6,285,000
Joni Usdan, Sales Associate
C. 203.216.7654
SADDLE RIVER, NEW JERSEY
It’s the fine custom touches like a mahogany foyer,
stone fireplaces, indoor pool & spa, cedar closets,
slate roof & more that welcome you home to this
stunning mansion. $4,595,000
Michael Randy & Elizabeth T. Boggia, Sales Associates
C. 201.218.5850 | O. 201.237.5050
RYE, NEW YORK
European-inspired Flagler Mathews luxury estate on
gated lawns w/beautiful pool/cabana. Palladian great
room; Magnificent rms open to verandas & terraces.
3BeechwoodCircle.com $3,795,000
Michele C. Flood, Associate Real Estate Broker
C. 914.420.6468 | O. 914.967.0059
WELLESLEY, MASSACHUSETTS
New construction in Cliff Estates with exceptional
details, chef’s kitchen, 5 bedrooms, walnut floors, 2
fireplaces, deck, gym, home theater, 3rd floor, and
3-car garage. $2,799,000
Donna Scott, Sales Associate
C. 781.254.1490
no
CONCORD, MASSACHUSETTS
Sophisticated, 2 acre residence with exquisite
amenities, 13 rooms, open floor plan, soaring stone
fireplace, custom chef’s kitchen, 5 en suite bedrooms,
and heated pool. $2,395,000
Brigitte Senkler & Peggey Dowcett Broker Assoc/Sales Associate
B. 508.935.7496 | P. 978.302.3988
BOXBOROUGH, MASSACHUSETTS
Gated estate set atop Flagg Hill bordering
conservation land. Huge rooms with views of Mt.
Wachusett, indoor spa, 12-seat bar/pub, lavish
master wing, personal gym & pool. $1,995,000
Jamieson Chalmers & Steve Mehigan, Sales Associates
J. 978.844.1313 | S. 978.760.2937
TOLLAND, CONNECTICUT
Paddocks, barn, tennis court, pool & a truly elegant
custom home w/2-story kitchen/family room, 1st fl.
master & private get-away for guests. Approx. 1.5-2
hours/Boston. $1,599,900
Pam Moriarty, Sales Associate
C. 860.712.0222
COLDWELLBANKERLUXURY.COM
The property information herein is derived from various sources that may include, but not be limited to, county records and the Multiple Listing Service, and it may include approximations. Although the information is believed to be accurate, it is not warranted and you should not rely upon it without
personal verification. All associates featured are licensed with NJ Department of State as a Broker or Salesperson or with NYS Department of State as an Associate Real Estate Broker or Real Estate Salesperson. Real estate agents affiliated with Coldwell Banker Residential Brokerage are independent
contractor agents and are not employees of the Company. ©2018 Coldwell Banker Residential Brokerage. All Rights Reserved. Coldwell Banker Residential Brokerage fully supports the principles of the Fair Housing Act and the Equal Opportunity Act. Owned by a subsidiary of NRT LLC. Coldwell Banker,
the Coldwell Banker Logo, Coldwell Banker Global Luxury and the Coldwell Banker Global Luxury logo are service marks registered or pending registration owned by Coldwell Banker Real Estate LLC.
NY / NE Friday, January 26, 2018 | M4A
W H E R E E XC E L L E NC E L I V E S
GREENWICH, CONNECTICUT KINGS POINT, NEW YORK BOSTON, MASSACHUSETTS WESTON, MASSACHUSETTS
Amazing Granoff Architects/Silver Properties new build Stunning luxury residence with panoramic views sits Exquisite Flat of the Hill Townhome offering high Classic New England home set on 3.5 acres in top
elegant top-of-the line custom home. 7 bedrooms, 8 on over 100,000 sq.ft. boasts elegant entertaining ceilings, 2 fireplaces, high-end kitchen, elevator, 4 location, 6-bedrooms, mahogany library, sunroom,
full/4 half baths, elevator. 3.03 Mid country acres & and comfortable living year-round. Close to NYC and bedrooms, 3.3 baths, home theatre, terrace, deck, estate, movie theatre, gym, game room, level
pool. $10,680,000 area airports. Price Upon Request and 5-car garage. $8,995,000 kingdom lot. $7,495,000
Tamar Lurie, Sales Associate Diane Polland, Real Estate Salesperson Michael Harper, Broker Associate Rosemary McCready, Broker Associate
C. 203.536.6953 C. 516.606.2344 | O. 516.482.8400 C. 617.480.3938 C. 781.223.0253
REDDING, CONNECTICUT GREENWICH, CONNECTICUT ENGLEWOOD, NEW JERSEY WESTON, MASSACHUSETTS
Gorgeous entertaining home, exquisitely detailed & New construction Georgian Col. w/gorgeous custom This extraordinary Georgian Colonial estate on almost Stunning new estate showcasing 8,500 sq. ft. of
designed w/gallery hall, 2 rec. rooms, 1st floor master. millwork, 5 fireplaces, Wolf commercial kitchen, 6 en 3.2 acres offers rooms with superb craftsmanship elegant living space, state-of-the art systems, 5
Private 19 acres w/ stunning pool, charming Koi suite bedrooms, Control 4 comfort systems. Serene and architectural detail. Grounds feature pool and bedrooms, 2-story great room, white kitchen, and
ponds, waterfall. $6,0000,000 1.41 acres w/pool. $5,895,000 tennis court. $4,888,888 entertainment lounge. $4,595,000
Gail Zawacki, Sales Associate Rose Russo, Sales Associate Joshua M. Baris, Sales Associate Rosemary McCready, Broker Associate
C. 203.856.9949 C. 203.803.7142 C. 201.741.4999 | O. 201.461.5000 C. 781.223.0253
.
BOSTON, MASSACHUSETTS NEW CANAAN, CONNECTICUT GREENWICH, CONNECTICUT WESTON, MASSACHUSETTS
ly
Premier 2,848 sq. ft. residence at Trinity Place with 7 Custom Georgian Colonial w/impressive rms, 10’ Shingle home radiates beauty. Custom lighting, 5 Sophisticated 7000+ sq. ft. custom property set on
rooms, generous windows, high-end kitchen, 2 en ceilings, 8 fireplaces, conservatory, luxurious master fireplaces, Savant Smart Home. 4 floors of exceptional 1.78 acres abutting Weston Golf Club offering 13
suite bedrooms, concierge, fitness center, and 2 wing, culinary kitchen, 5 acres w/pool, close to living space featuring 5 bdrms, 8 baths. Less than 5 rooms, 4 bedrooms, recreation, au pair suite, patios,
garage spaces. $4,575,000 shops/restaurants. $4,450,000 mins to Greenwich Ave! $4,250,000 and 3-car garage. $4,250,000
David Mackie, Sales Associate
C. 617.480.6044
on Marsha Charles, Sales Associate
C. 203.904.4663
Diana Baxter Heidenreich, Sales Associate
C. 203.505.2545
Deena Powell & Belen Scully-Power, Sales Associates
D. 781.718.6555 | B. 617.631.6011
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WESTON, MASSACHUSETTS STAMFORD, CONNECTICUT GREENWICH, CONNECTICUT BOSTON, MASSACHUSETTS
Stunning New Construction! Spectacular 15 rooms, 6 Wraparound harbor/shoreline views. Sunny, Gated, long sweeping driveway to Classic Manor New parlor to garden triplex with 3 bedrooms, open
bedrooms custom designer home. Open floor plan, re-imagined, beautifully decorated 5-bedroom House exuding unerring taste, opulent custom living/dining areas, 2 fireplaces, designer kitchen,
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gourmet kitchen, large family room and a luxurious waterfront home has its very own pool & deepwater appointments, foyer w/heated floor, versatile game mudroom, family room, patio, rear deck, and deeded
master suite. Gorgeous landscaped lot. $3,595,000 dock plus Dolphin Cove amenities! $3,395,000 room & master sanctuary. $3,300,000 parking space. $2,869,000
Kathryn Alphas-Richlen, Sales Associate Emile P. de Neree, Sales Associate Barbara Zaccagnini, Sales Associate Rob Kilgore & Alexandra Biega, Broker Associate/Sales Associate
C. 781.507.1650 C. 914.572.4526 C. 203.249.1454 R. 617.504.7814 | A. 508.380.2331
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MARBLEHEAD, MASSACHUSETTS NEWTON, MASSACHUSETTS SANDS POINT, NEW YORK WINCHESTER, MASSACHUSETTS
Marblehead Neck home with ocean views. Formal Exceptional 6,000+ sq. ft., antique home with 16 Set on 1.8 acres, this 3,600 square-foot Ranch Chic custom home set on lush 3/4 acre with 12
rooms, open kitchen/family room, 4+ bedrooms, den, rooms, 7 bedrooms, 7 fireplaces, original details, 14” includes a deluxe master suite, chef’s kitchen with rooms, 3 fireplaces, 5 bedrooms, chef’s kitchen with
2 fireplaces, master suite, wrap around porch and wide pine floors, exposed beams, and cathedral radiant-heated floor, bluestone patio, outdoor kitchen breakfast room, covered porch, lower level recreation,
beautiful grounds. $2,695,000 grand ballroom. $2,599,000 and Gunite pool. $2,499,000 and 4-car garage. $2,499,000
Mary Stewart & Heather Kaznoski Broker Sales Assoc/Sales Assoc Frank Rossetti & Martha Poti, Broker Associate/Sales Assoc Kathleen “Kathy” Levinson, Real Estate Salesperson Domingo Medina & Leigh Ventura, Sales Associates
M. 781.820.5676 | H. 781.576.9286 C. 781.334.0100 C. 516.650.1959 | O. 516.767.9290 D. 617.610.0050 | L. 617.513.5082
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BROOKLINE, MASSACHUSETTS WELLESLEY, MASSACHUSETTS WESTON, MASSACHUSETTS BROOKFIELD, CONNECTICUT
Circa 1895 Queen Anne Victorian home offering Newer Colonial home with gorgeous architectural Custom shingle-style home set on 2.67 acres with Exceptional Candlewood Lake Waterfront w/enticing
elegant historic details, tall ceilings, hardwoods, huge details, superb craftsmanship, 4 floors, cook’s rich details, high-tech systems, custom kitchen, water views, open great room to Chef’s kitchen, 2
windows, 6 bedrooms, renovated kitchen and master kitchen, 2 fireplaces, study, mudroom, 5 bedrooms, sunken family/living room, 2 masters, sports court, fplcs,3 car garage, wrap deck & private dock. A Gem!
bath, and media room. $2,295,000 gym, playroom, and deck. $2,250,000 and 3 garage spaces. $2,000,000 $1,995,000
Judy Goldfarb, Sales Associate Melissa Dailey, Sales Associate Deborah S. Bernat, Broker Associate Barbara Sivba, Associate Broker
C. 617.943.3318 C. 617.699.3922 C. 617.699.5878 C. 203.667.4336
TENAFLY, NEW JERSEY DANBURY, CONNECTICUT DEEP RIVER, CONNECTICUT WESTFIELD, NEW JERSEY
This young five bedroom; four full bath Center Hall West Exposed waterfront with panoramic vistas, walls Breathtaking CT River views! Lovely Brockway Impressive new Colonial offers 5 bedrooms and 6
Colonial features large formal living and dining rooms, of windows, hardwoods, 4 stone fireplaces, chef’s Landing home has ultimate spaciousness, updated baths. Gourmet kitchen, fabulous master suite, third
a gourmet kitchen, great room and luxurious master kitchen, vaulted great room, wrap decks, spa, dock, Carrera marble kitchen, 1st fl. master. Steps from a floor bedroom and bath and spacious finished
suite. $1,888,888 guest cottage & more! $1,795,000 deep water dock w/lift. $1,750,000 basement. $1,625,000
Joshua M. Baris, Sales Associate Barbara Sivba, Associate Broker Terry Kemper, Sales Associate Frank D. Isoldi, Broker Sales Associate
C. 201.741.4999 | O. 201.461.5000 C. 203.667.4336 C. 860.908.7820 C. 908.787.5990 | O. 908.233.5555
UPPER SADDLE RIVER, NEW JERSEY SHERBORN, MASSACHUSETTS EAST GREENWICH, RHODE ISLAND BEDFORD, NEW HAMPSHIRE
This new luxury estate offers five bedrooms and four “Midcentury modern” home offers approximately Renovated 1896 home with high ceilings, Pella Beautiful custom home set on 1.6+ acres with 12
full-and one half-baths and spacious open floor plan. 6,776sf and 6 bedrooms. Large flat areas of lawn, windows, new systems, superb baths, pocket doors, rooms, 4 bedrooms, hand carved millwork, built-ins,
Sumptuous master suite, great room, and gourmet extensive plantings, a swimming pool and views over chef’s kitchen, roof deck, 4 bedrooms, plus reclaimed 2 fireplaces, chef’s kitchen, cathedral family room,
chef’s kitchen. $1,598,888 Farm Pond. $1,545,000 stage and choir loft. $1,100,000 and updated deck. $1,050,000
Joshua M. Baris, Sales Associate Jonathan P. Radford & Elena Price, Sales Associate/Broker Associate John Chapski, Broker Associate Jennifer Riley, Sales Associate
C. 201.741.4999 | O. 201.461.5000 J. 617.335.1010 | E. 508.577.9128 C. 401.808.9279 | O. 401.884.8050 C. 603.674.0278 | O. 603.471.0777
C O L D W E L L B A N K E R R ES I D E N T I A L B R O K E R AG E
251064NJ_01/18
 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.

M4B | Friday, January 26, 2018 NY THE WALL STREET JOURNAL.

Upper East Side, NYC

COVETED 4 BR CORNER WITH RIVER VIEWS
$9,595,000 | Web#17687450
Meryl Jacobs 212.381.3335 | Susan Burris 212.381.3205

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Midtown West, NYC Darien, CT

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ONE OF KIND DUPLEX PENTHOUSE ATOP THE BACCARAT WATER, WATER EVERYWHERE
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$39,995,000 | Web#17786904 $7,250,000 | Web#170040067

Dina Scheinman 212.381.2319 Becky Munroe 203.858.6182
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Fieldston, Riverdale, NY Upper East Side, NYC Upper West Side, NYC
MANSION PLUS 3 LOTS SPECTACULAR DUPLEX PANORAMIC VIEWS + BALCONY
$5,900,000 | Web#17313655 $5,745,000 | Web#17142157 $5,100,000 | Web#16707779
Sanjya Tidke Team 212.381.2485 S. Christopher Halstead 212.381.3220 Dean R. Feldman 212.381.2231 | Barak Dunayer 212.381.2248
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Upper East Side, NYC SoHo, NYC Midtown East, NYC

PARK AVENUE CLASSIC 7 FULL FLOOR 2 BEDROOM LOFT RIVER HOUSE PERFECTION
$4,500,000 | Web#17596491 $3,850,000 | Web#17881436 $3,750,000 | Web#16881167
Elaine B. Tross 212.381.3322 Anne Prosser 212.381.3348 Anne Prosser 212.381.3348

Upper East Side, NYC Upper West Side, NYC Downtown, NYC
PARK AVENUE CLASSIC 6 LUXURY PREWAR CONDO 2 BEDROOM SWEEPING VIEWS - 3 TERRACES
$2,895,000 | Web#17835796 $2,495,000 | Web#17770821 $1,875,000 | Web#17958160
Lisa Mathias 212.381.3213 Kyle Haas 212.521.5728 | Ivana Tagliamonte 212.381.6575 Friedman Rosenthal Team 212.381.2379

Halstead Property, LLC; Halstead Property Riverdale, LLC; Halstead Connecticut, LLC; All information is from sources deemed reliable but is subject to errors, omissions,
change or price, prior sale or withdrawal without notice. No representation or guaranty is made as to accuracy of any description. All measurements and other information should
be re-confirmed by customer. All New York Yankees trademarks and copyrights are owned by the New York Yankees and used with the permission of the New York Yankees.
 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.
THE WALL STREET JOURNAL.
The Mischievous ‘River Kid’of Iowa
Growing up, the actor bonded with his spirited working mom; today, he shares an L.A. home with a tree
There was excitement in our home the day
my father returned from World War II. I was
4 and had no recollection of him. I was born
just before he shipped out. My sister, Nancy,
was two years older and remembered more.
When my father, Franklin,
walked through the door of our
house in Ames, Iowa, there was a
collective gasp. He had left a strap-
ping 6-foot-6 and 260 pounds.
Standing before us, he was just skin
and bones.
My mother, Helen, who was all
dressed up that day, was waiting
for the man who had left. Instead,
she gently embraced a stranger.
The war also transformed my
mother. She went
to work, and by
the end of the
war she was a de-
termined, liber-
ated woman who
had a significant
influence on me.
She worked in
retail and fashion
related to the war
effort. After, she continued to work
in fashion as a buyer for depart-
ment stores.
We lived in one section of a
three-story yellow Victorian house.
An older woman occupied the other
section.
Before the war, my father had
attended Iowa State University in
Ames, which is where he met my
mother. After the war, he worked
as an engineer.
My mother had blonde hair and
a face and figure that caught every-
one’s attention. She had a fashion-
able style and was handy with a
needle and sewing machine.
Best of all, she had a healthy re-
spect for the imagination. She’d
take Nancy and me to a shed in the
no
5143 Tuscan Dawn
NY Friday, January 26, 2018 | M5
MANSION
HOUSE CALL | NICK NOLTE
SHAYAN ASGHARNIA FOR THE WALL STREET JOURNAL (PORTRAIT); NICK NOLTE (HISTORICAL); COLUMBIA PICTURES/EVERETT COLLECTION (PRINCE OF TIDES)
woods near a cave. There, she’d
spin yarns about an old guy who
lived in there because he didn’t
want a modern life.
My mother didn’t believe we had
to be great students. A brand new ON A LIMB Nick Nolte,
idea or doing something unique left, in his tree home.
was much more exciting. Above, with sister, Nancy,
I got along with my mom. But in Ames, Iowa. Far left,
my sister was often puzzled and with Barbra Streisand in
hurt by her frequent rages and ‘The Prince of Tides,’ 1991.
blunt way of putting things.
When I was 7, was a turning point for
we moved to Wa- me.
terloo, Iowa. My Today, I live in the
father’s company Malibu Hills in L.A. I’ve
made industrial- built several houses
size pumps to over the past 40 years.
control the Mis- One of them is made of
sissippi and had river rock. I gave it to
transferred him my daughter, Sophie.
there. My partner, Clytie,
Right after we and I live in the two-
.
moved in, my mother took Nancy bedroom, three-story
ly
and me door-to-door, introducing house I built around a
herself to housewives and making gigantic sycamore tree
sure they knew she was a working and its limbs. Our bed-
woman. Soon after she took a job
on room is on the top floor.
in a local department store. I wanted to get as
My mother took Dexedrine. close to the tree as pos-
When I wasn’t up for school, she’d sible. Having it in the
us l,
give me one, calling it a “vitamin room makes you realize
pill.” She also drank a few vodka you’re not the only one
tonics each evening. I was allowed for any school again. We moved al- The following year, a friend alive in there.
al a
e
to drink at home at 15. most immediately to West Omaha, asked me to tag along while he took —As told to Marc Myers
I often thought of myself as a where I could play. an acting class taught by Bryan
ci on
river kid. We lived near the Cedar After high school, I went to sev- O’Byrne. The class was at Bryan’s Nick Nolte, 76, has starred in more
River, where I’d sit on its banks and eral colleges on football scholar- house at the top of Laurel Canyon. than 75 films, including “Down and
watch the moving water for hours. ships, but my grades weren’t over- At some point, Bryan gave me a Out in Beverly Hills,” “The Prince of
In school, I was a solid football whelming. In 1962, I left Pasadena script to read. I was nervous but I Tides” and “Cape Fear.” He is the
player. But after a friend and I City College in Los Angeles and gave it a shot. When I finished, he author of the memoir “Rebel: My
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pulled a prank, a summer-camp wound up rooming in Laurel Can- said, “You don’t know it yet but Life Outside the Lines” (William
coach vowed I’d never play football yon with two older women. you’re an actor. You’ve got it.” That Morrow).
m e
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 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.

M6 | Friday, January 26, 2018 NY THE WALL STREET JOURNAL.

MANSION

A LUCKY YEAR FOR CHINESE BUYERS

velopment sold out in a month,
says Mr. Wein.
Chinese numerology has long
been an important factor in cer-
tain real-estate markets. While the
number eight is always beneficial,
the number four—which sounds
like the word for death—is to be
avoided. In the greater Toronto
city of Markham, where nearly half
the population self-identifies as
Chinese, “sellers have to put an
eight in the price, and you try
your hardest to avoid four,” ex-
plains Anthony Tomasone, a real-
estate agent with the online listing
and referral service Zoocasa.com.
From January to May 2017, 66%
SYD WEILER

of all Zoocasa’s Markham listings

contained at least one eight in the

ANGELA OWENS/THE WALL STREET JOURNAL

Continued from page M1
five of her clients suddenly went
from casual browsers to active
property seekers. “These clients
have been looking for a while,
then—I don’t know if it’s related
to 2018—but around December 23
or January 1, suddenly they say,
‘OK, this year we’re really going
to look.’”
Carrie Law, chief executive of
Juwai.com, a Chinese international
real estate website, says she
knows of Beijing-based buyers who
were ready to purchase a home in
the $5 million range in New York
City last year, but postponed the
offer price, up from 25% in the
first three months of 1990 and 35%
in the first three months of 1995.
In non-Asian-majority neighbor-
hoods in the U.S., eight was the
last nonzero digit in just 4% of all
home listings in 2017, according to
data from Trulia, while in Asian-
majority neighborhoods the figure
was 25%—up 5% from 2012.
Among listings for homes over a
million dollars, that number in JACKPOT In New York, Chinese buyers flock to this development at 80 Park Avenue. Not only does its address include
Asian-majority neighborhoods is the lucky number eight, the building is located between 38th (an especially auspicious number) and 39th Streets.
38%.
In New York, Chinese buyers tain lucky numbers has become so outflow of capital for foreign real- “uncertainty coming up with tax
flock to the condo development at well known that even non-Chinese estate investment and, in Canada, reform” and a possible interest-
80 Park Avenue between 38th (an buyers are careful to pay them a federally mandated stress test rate increase are spurring buyers
especially auspicious number that heed, says Peter Ng, Calgary-based designed to raise the financial bar to strike deals sooner rather than
sounds like “create wealth”) and president of multicultural real es- later in the year. The biggest rea-

.
purchase so they could buy this 39th, says Geovanna Lim, presi- tate specialist KORE Marketing. In son for strong sales, she adds, is

year instead. “There may have
been other factors at play, but
that’s the reason they gave us,”
she says.
While real estate veterans aren’t
banking on a big 2018 bump,
Christopher Wein, president of the
dent of the real-estate investment
and brokerage firm Park Avenue
International Partners.
Some would-be buyers will
on
lobby for a change in house or unit
numbers. Seattle Berkshire Hatha-
way real-estate agent Becco Zou
us l,
Richmond or Burnaby, British Co-
lumbia, he says, where 80% to 90%
of pre-sale condo units are
snapped up by Chinese buyers,
non-Chinese are loath to buy a nu-
merally challenged unit; in a few
years, they might find it impossi-
ly
lack of inventory, a situation repli-
cated in Canada. Still, property
The preference for certain values “are already pushed really
numbers has become so high,” says Ms. Tan, raising the
possibility of a correction. She
well known that even non- adds, “It’s going to be an interest-
Chinese buyers are careful ing year.”

Toronto-based development com-
pany Great Gulf, says the number
2018 very well could spark “en-
hanced” market activity.
Besides investing in a Shanghai
recalls the buyer who liked every-
thing about a $3 million home ex-
cept for its address: 1044.
al a
e
“He went to the city of Bellevue
and got it changed within a day,”
ci on
ble to sell.
The real estate mojo of lucky
numbers, however, doesn’t seem to
extend to Chinese zodiac signs.
The coming Year of the Dog, which
to pay them heed: A
numerically challenged unit
could be impossible to sell.
Ms. Law of Juwai.com thinks
otherwise. She predicts a big up-
surge in activity in August—be-
cause it is 8/18.
“You will likely see buyers and

office and equipping its sales sites
with Chinese-speaking staff and
Chinese-language marketing mate-
rial, Great Gulf pays attention to
lucky numbers. A pre-sale offering
she recalls. Tracy An, a sales rep-
resentative for Sotheby’s in To-
ronto, says one of her clients, with
a neighbor’s consent, was able to
change his house address from 44
er rs
begins Feb. 16, isn’t a significant
factor to most buyers.
Most experts note that funda-
mentals still matter the most. Chi-
nese buyers consider factors like
for mortgage seekers.
Coco Tan, a Silicon Valley real-
estate agent, projects continued
agents scheduling viewings and
closings for the eight day of the
eighth month of 2018,” and others
scrambling to close year-end
transactions quickly, “before the

of 65% of the units at its desirably
located 8 Cumberland Street de-
no
to 42A. interest rates, potential tax law market momentum carrying over calendar ticks over from 2018 to
The Chinese preference for cer- changes, China’s crackdown on the from a strong 2017, noting that 2019,” she says.
m e
m rp
co Fo
n-
 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.

THE WALL STREET JOURNAL. NY Friday, January 26, 2018 | M6A

READY TO SELL? LOOKING TO BUY?

I T ’ S T I M E F O R E L L I M A N

1515 Baptist Church Road, Yorktown Heights | $12,000,000 | 4-BR, 5.5-BA | Web# 4707335 43 West 64th Street, PH14A, Lincoln Square | $10,650,000 | 4-BR, 4.5-BA | Web# 2711878
Frank Haymson and Arlene Oxman O: 914.649.2637 Nicholas Palance O: 212.352.6235

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941 Park Avenue, 6C, Upper East Side | $7,650,000 | 4-BR, 4.5-BA | Web# 2424309 on 3511 Cambridge Avenue, Riverdale | $6,850,000 | 10 new condo units| Web# 2861035
J. Roger Erickson O: 212.303.5353 Renee White O: 212.531.7712
us l,

Priced Reduced
al a
e
ci on
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1065 Park Avenue, 23AB, Carnegie Hill | $4,995,000 | 5-BR, 4.5-BA | Web# 2798048 250 West 90th Street, 17JKI, Upper West Side | $4,680,000 | 4-BR, 3.5-BA | Web# 2884528
Elizabeth (Lisa) Brown O: 212.319.5432 Eileen Foy M: 347.463.8128 MariaElena Scotto O: 212.350.6818
co Fo
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146 West 22nd Street, 7, Chelsea | $4,195,000 | 3-BR, 3-BA | Web# 2928958 10 East 70th Street, 8D, Upper East Side | $2,500,000 | 2-BR, 2.5-BA | Web# 3051439
Jessica Saleh Hunt M: 917.319.4717 Sandy Gansberg O: 212.769.6548 Daniela Sassoun O: 212.702.4082 Mark Mistovich O: 212.702.4083

205 West 76th Street, 9L, Upper West Side | $2,188,000 | 2-BR, 2-BA | Web# 2888407 201 East 77th Street, 19A, Upper East Side | $1,495,000 | 2-BR, 2-BA | Web# 2943770
Daniela Sassoun O: 212.702.4082 Mark Mistovich O: 212.702.4083 Sandy Gansberg O: 212.769.6548 Adam Solomon M: 908.578.4481

elliman.com

NEW YORK CITY | LONG ISLAND | THE HAMPTONS | WESTCHESTER | CONNECTICUT | NEW JERSEY | FLORIDA | CALIFORNIA | COLORADO | INTERNATIONAL
575 MADISON AVENUE, NY, NY 10022. 212.891.7000 © 2018 DOUGLAS ELLIMAN REAL ESTATE. ALL MATERIAL PRESENTED HEREIN IS INTENDED FOR INFORMATION PURPOSES ONLY. WHILE, THIS INFORMATION IS BELIEVED TO BE CORRECT, IT IS REPRESENTED SUBJECT TO ERRORS, OMISSIONS, CHANGES OR WITHDRAWAL WITHOUT NOTICE. ALL PROPERTY INFORMATION, INCLUDING, BUT NOT LIMITED TO
SQUARE FOOTAGE, ROOM COUNT, NUMBER OF BEDROOMS AND THE SCHOOL DISTRICT IN PROPERTY LISTINGS SHOULD BE VERIFIED BY YOUR OWN ATTORNEY, ARCHITECT OR ZONING EXPERT. EQUAL HOUSING OPPORTUNITY.
 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.

M6B | Friday, January 26, 2018 NY THE WALL STREET JOURNAL.

Stand Up
with us
Support Stand Up To Cancer
today to help cancer patients
become cancer survivors.

.
ly
on
us l,
al a
e
Give $25 or more to Stand Up To Cancer through the Miles To Stand Up program and
ci on

you’ll receive 10 American Airlines AAdvantage® miles for every dollar donated.
Donate and earn at
er rs

standuptocancer.org/americanairlines
m e
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Pictured: Stand Up To Cancer Ambassador, Bradley Cooper

along with American Airlines team members currently
fighting, surviving and co-surviving cancer.

Stand Up To Cancer is a division of the Entertainment Industry Foundation, a 501(c)(3) organization.

American Airlines and the Flight Symbol logo are marks of American Airlines, Inc. © 2017 American Airlines, Inc. All rights reserved. Offer valid on contributions made online at www.SU2C.org/americanairlines. Minimum $25 donation required.
For charitable deduction purposes, each mile is valued at 3 cents per mile. The receipt of miles may reduce the tax deductibility of your donation. Mileage cap for a 12-month period is 600,000. Bonus miles do not count toward elite-status qualification.
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THE WALL STREET JOURNAL. NY Friday, January 26, 2018 | M7

MANSION
IN THE TRENCHES

Can We Take Down the Satanic Poster?

Two real-estate agents reveal some of their profession’s annoyances; returning the used mattress

BY CANDACE TAYLOR

Q. What is your
biggest pet
peeve?

Janine Hostetter, real-

estate agent at Robert Paul
Properties, Osterville,
Mass.
When buyers and sellers
start to haggle over the per-
sonal property items for in-
clusion, like furnishings.
Haggling over a dated
sleeper sofa or granny’s por-
celain china can really con-
volute a sale.
I used to work in Califor-
nia, and I once had a client
sell his beautiful ski chalet
in Lake Tahoe completely
furnished. But he happened
to love [his] mattress. So he
bought a nice new mattress
for the buyers, not thinking
it would be an issue. But
during the final walk-
through before the closing,

.
they noticed [the new mat-

ly
tress]. They wanted the one
that was per the offer, even
though they knew it wasn’t
brand new. And technically on
per the terms of the con-

WENJIA TANG
tract, they were within
their rights.
us l,

We had to notify the sell-

ers and they had to return
the mattress. [The seller]
was surprised—”You’ve got
to be kidding me, they want
caliber of mattress—who est truth after an unsuccess- think the shower in the din- goat—it could have been a son’s feelings.
al a
e
knows? I’d go with the fresh ful open house, like “Can we ing room was a bonus fea- deer. It was something with One house, [the owner
mattress myself. get rid of talkative grandma ture” or “Can you please re- hair. The rest of the house has] a stripper pole. Every
ci on

my old mattress when I
bought them a nice new
one?” But he said OK. I
think he drove it back up
from San Diego in his truck.
for the next open house? I move the satanic poster, was like Pottery Barn. time I show the house, peo-
GiGi Malek, real-estate don’t think she’s caught up black candles and dried goat I said to the dad, “Could ple think there are structural
agent at Terrace Sotheby’s with the current racially ap- head from your son’s room?” we take the poster down? It problems, because why else
International Realty, Forest propriate terminology.” Or [In that case] it was a would be better if it was would you put a pole there?
Hills, N.Y. “How about not cooking fish teenager. The whole room more mainstream.” That I always explain it as an “ex-
er rs

Perhaps [the buyers] Sometimes I just want to five minutes before I get was painted black. I don’t was a challenge, because ercise pole”—it’s a class, like
thought it was a superior tell the gut-wrenching, hon- there?” or “No, they didn’t actually know if it was a he didn’t want to hurt his Zumba.
m e
m rp

FIND YOUR PLACE IN THE NEW YEAR

WITH OUR EXPERT GUIDANCE
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It’s easy to find the right place when you know the right people.
Find experienced agents and exceptional properties.
bhhsnyp.com

As an investment into your financial future, an understanding of the

market empowers you to make well-informed, timely decisions. New York Properties
Find insights and information at:
bhhsnyp.com/en/market-report

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

© 2017 BHH Affiliates, LLC. An independently operated subsidiary of HomeServices of America, Inc., a Berkshire Hathaway affiliate, and a franchisee of BHH Affiliates, LLC. Berkshire Hathaway HomeServices and the
Berkshire Hathaway HomeServices symbol are registered service marks of HomeServices of America, Inc.® Equal Housing Opportunity. Information not verified or guaranteed. If your home is currently listed with a
Broker, this is not intended as a solicitation.
 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.

M8 | Friday, January 26, 2018 THE WALL STREET JOURNAL.

ADVERTISEMENT

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To Advertise Call: 800-366-3975

 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.

THE WALL STREET JOURNAL. Friday, January 26, 2018 | M9

May 22, 2018 | Four Seasons Hotel | Washington, D.C.

How innovation is revolutionizing

the business of health
This spring, the editors of The Wall Street Journal will convene inluential business leaders, policy makers and experts
from across the health and health-care industries to focus on the innovations transforming this critical sector of the
economy. These participants will join an audience of senior executives and entrepreneurs, including those from the

.
worlds of inance, science and regulation.

ly
Through highly interactive interviews, the editors will cover issues of key importance in 2018, from the technologies
and advanced analytics changing the study of the human genome to new business models affecting health care.
on
us l,

SPEAKERS
al a
e
Mark T. Bertolini David N. Osser, M.D.
ci on

Chairman and CEO, Associate Professor of Psychiatry,

Aetna Inc. Harvard Medical School
Attending Psychiatrist, Domiciliary
Treatment Program for
Homeless Veterans,
er rs

Veterans Affairs Boston

Healthcare System

Gail K. Boudreaux Rear Adm. Anne Schuchat,

m e

President and CEO,

M.D.
Anthem, Inc. Principal Deputy Director,
m rp

Centers for Disease Control

and Prevention
co Fo

George M. Church, Ph.D. Eric Topol, M.D.

Professor of Genetics, Founder and Director,
Harvard Medical School Scripps Translational
Science Institute, Professor
Director,
of Molecular Medicine and
PersonalGenomes.org
Executive Vice President,
The Scripps Research Institute

Stephanie Domas, P.E., Sarah E. Wakeman, M.D.

C.E.H. Medical Director, Substance
n-

Vice President of Research, Use Disorders Initiative,

MedSec Massachusetts General Hospital
Assistant Professor of Medicine,
no

Harvard Medical School

Anthony S. Fauci, M.D. Feng Zhang, Ph.D.

Director, National Institute of Core Institute Member,
Allergy and Infectious Diseases, Broad Institute of MIT
The National Institutes of Health and Harvard

Richard J. Gilillan, M.D Daphne Zohar

CEO, Co-Founder and CEO,
Trinity Health PureTech Health plc.

Thomas McLellan, Ph.D.

Co-Founder and Scientiic Director
(19922015),
Treatment Research Institute
Deputy Director and Senior Scientist
(20092011),
White House Ofice of National Drug
Control Policy

Request your invitation: healthforum.wsj.com

© 2018 Dow Jones & Co., Inc. All rights reserved. 6DJ6233
 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.

M10 | Friday, January 26, 2018 THE WALL STREET JOURNAL.

MANSION
RELATIVE VALUES

LUXURY IN THE PACIFIC NORTHWEST

Three homes in and around Bend, Ore., that offer mountain views and ample outdoor activities
FROM LEFT: SUMMIT PRO MEDIA (2); ROBERT KROPACEK / IN1VIEW (2)

TYLER PHILLIPS PHOTOGRAPHY (2)

$24 million $4.2 million $6.8 million
Eight bedrooms, nine bathrooms Five bedrooms, five bathrooms, one half-bath Four bedrooms, seven bathrooms

This 14,666-square-foot house in Sisters, Ore., sits on over 500 This 10,061-square-foot house on about 1 acre features custom Wild Horse Trail is about 10 miles from downtown Bend. The
acres. It has a gourmet kitchen, butler’s kitchen, wine room, the- stone and woodwork throughout, including six fireplaces with 9,460-square-foot home has nine fireplaces, a guesthouse and
ater and guest wing. The equestrian barn has a saloon; property limestone mantles from France. Other amenities include a wine horse barn. It has views of the Cascade Mountains and private ac-
includes a guesthouse, manager’s house and other outbuildings. cellar, downstairs game room with wet bar and large terraces for cess to the Deschutes River.
Agents: Pam Mayo-Phillips and Brook Havens, Cascade Sotheby’s entertaining. Rooms have views of the Cascade Mountains. Agent: Nancy Melrose, Cascade Sotheby’s International Realty
International Realty Agent: Greg Langhaim, Bend Real Estate Advisors —Nancy Keates

ADVERTISEMENT

Distinctive Properties & Estates

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

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FLORIDA

 
  
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NEW HAMPSHIRE SELECT RESIDENTIAL

LISTINGS EVERY
FRIDAY IN MANSION


   
  
   

  
   
(800) 366-3975
     sales.realestate

 
 
 
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  © 2018 Dow Jones & Company, Inc.

    All Rights Reserved.
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THE WALL STREET JOURNAL. Friday, January 26, 2018 | M11

 

 
   

  


 


  
 
  
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 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.

M12 | Friday, January 26, 2018 THE WALL STREET JOURNAL.

MANSION
BALANCE SHEET

A House That’s in the ‘Mood’

Mood boards created by an Amsterdam couple inspire their architect’s home design

BY J.S. MARCUS
KEY
ESTHER BROUWER and Niels
Dengel, an Amsterdam couple, COSTS
started work on their new home
literally—with homework. Kitchen
In fall 2014, after acquiring a
small waterfront lot in the far east $43,000
of the Dutch capital, the pair were
asked by architect Marc van Driest Bathrooms
to create a pair of mood boards, or
collages of images. $43,000
About two years later, the cou-
ple and their young son Mads Heating/cooling/
moved into the building their ventilation
boards helped inspire: a two-story,
3,300-square-foot villa with a $53,000
split-level ground floor, four bed-
rooms, three bathrooms and a Foundation
powder room. The couple spent
roughly $630,000 on the lot, and $17,700
around $1.1 million on construc-
tion, landscaping and furnishings. Floors
Building a whole house from
scratch is now very $32,600
rare in Amsterdam,
with vacant lots Windows,
nearly impossible including glass
to come by. The doors in the back
couple found their
lot in IJburg, a new $86,000

.
neighborhood inau-

ly
gurated in 2002 Landscaping
that is comprised
of several artificial $71,000
islands, 5 miles MIX AND MATCH The home combines smooth
on
east of the heart of industrial surfaces with ‘authentic’ materials like Alinel cladding on
Amsterdam, at the salvaged barnwood. Esther Brouwer, Niels Den- facade
mouth of the IJ
$86,000
gel and son Mads.
us l,

River. They bought

a 1/10 acre-plot on Rieteiland Oost,
HERMAN VAN HEUSDEN FOR THE WALL STREET JOURNAL (5)

a small island solely devoted to Electrical work

al a
e
single-family homes. and built-in lights
The couple have their own pier,
$75,000
ci on

and use a refurbished rescue boat

to travel through the canals of in-
ner Amsterdam or out into a few Wood-burning
of the large adjoining lakes that stove
make up the center of the Nether-
$5,100
er rs

lands.
Instead of confining themselves
to specific aspects of buildings, as Design fees
clients tend to do, the couple’s
$74,000
m e

mood boards expressed their feel-

ings about life in general. The
m rp

boards also revealed that the cou-

ple had some contradictory The mood boards, in addition to
tastes—they like smooth, indus- a brief written by the couple, also
trial surfaces, but also crave what led to some unusual layout deci-
Mr. van Driest, 44, calls “profound, sions. The ground floor has a U-
co Fo
The couple spent around material, called Alinel, on a com- spent as the couple’s lone splurge,
$43,000 on the kitchen. The pair mercial building in central Hol- “but we wanted it.”
considered a range of prebuilt land, and he thought it would The finished basement remains
and designer options, says Mr. work well on a home. The Alinel, something of a work-in-progress.

authentic materials.” shaped open plan based on the as-
His solution was to combine ev- sumption that the kitchen
erything in a double-height stair- functions more like an old-fash-
well that the architect calls the ioned living room—the default
“heart of the house.” The space in- spot for entertaining.
cludes burnished blue steel, stain- The cozy living room, at the
less steel, glass and salvaged barn other end of the U, is where the
wood, all presided over by sky- family retreats for privacy. Mr. van
lights and barn-wood beams. Driest says the layout reflects his
Throwing barn wood into the interpretation of the mood boards,
mix put Ms. Brouwer, an advertis- which contained sleek imagery re-
ing executive, at ease. “I was lated to sports cars and skiing, as
afraid that a new house would be well as images that suggested to
n-
Dengel, a business consultant which covers much of the villa, “At some point, this will be my
with a marketing background, cost nearly $86,000, and sets the son’s room,” says Mr. Dengel, “but
“but they just weren’t special home apart from its brick-and- for now let’s call it a man cave.”
enough.” Blue-steel cabinets with glass neighbors. The couple may already have re-
an exact fit, adds their architect, Homeowners on IJburg are part couped their investment. Amster-
are only possible with a personal- of a green-friendly, communal dam’s current real estate boom has
ized design. heating network, but the couple meant double-digit increases in
Mr. van Driest channeled the decided to go one step further and home prices each of the last three
couple’s inspiration into the house, spend around $53,000 on a private years.
but one of its most distinctive fea- geothermal pump system that pro- Last spring, a neighboring villa
tures—a shimmering, powder- vides their own underfloor heating smaller than theirs, built on a
coated, aluminum facade—came and cooling. “We didn’t have to do smaller lot, sold for around $1.7
about by accident. He discovered a that heating system,” says Mr. million a few weeks after coming

too cold,” she says. him a kind of vulnerability. ribbed, low-maintenance cladding Dengel, who regards the money on the market.
no

AUCTION JANUARY 31ST

46 STAR ISLAND DRIVE, MIAMI BEACH, FLORIDA

PREVIOUSLY LISTED FOR $65M. SELLING WITHOUT RESERVE.

Historic, fully-renovated Mediterranean villa on Star Island with 255 feet of waterfront,
panoramic views of Miami, opulent outdoor entertaining, and more than 40 rooms.

In Cooperation With: Mirce Curkoski and Alexa Iacovelli of ONE Sotheby’s International Realty
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