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MONDAY, NOVEMBER 14, 2016 ~ VOL. XLI NO. 53

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Whats
News
Business & Finance
rumps presidency is
set to usher in a new
era for the U.S. economy
that could boost growth but
also bring potential risks
including trade wars. A1
U.S. allies Japan and
South Korea likely would
suffer collateral damage
from tariffs on China. A1
Chinese oil firms push
into the U.S. faces uncertainty after Trumps win. B2
NIKKEI 17374.79 0.18%
STOXX 600 337.50 g 0.41%
BRENT 44.75 g 2.38%
GOLD 1223.50 g 3.32%
EURO 1.0847 g 0.42%
Economists see
Trump presidency as
also pushing interest
rates, inflation higher
tion, and a new set of potential risks including international trade wars.
The cautious optimism revealed in The Wall Street Journals latest monthly survey of
economists owes to the belief
that the Republicans proposals
to reduce taxes and invest in infrastructure will amount to a
substantial fiscal stimulus.
The change of administration could knock the U.S.
economy out of its low-altitude, low-growth orbit, said
BY JOSH ZUMBRUN
The presidency of Donald
Trump is poised to usher in a
new era for the U.S. economy
that forecasters say could
boost economic growth, bring
higher interest rates and infla-
Trump Transition
President-elect prepares to
pick chief of staff.............. A5
Opinion: The first casualty
of antitrade politics....... A10
Heard on the Street: The
yuan and Trump.............. B10
Sean Snaith, director of the
Institute for Economic Competitiveness at the University
of Central Florida. The question is, he said, Will it put the
economy in a higher growth

orbit, or will it knock us down
into the atmosphere and a fiery re-entry?
On average, economists
marked up their growth forecasts. The economy could expand 2.2% in 2017 and 2.3% in
2018, as a fiscal stimulus kicks
into gear, up from about 1.5%
over the past 12 months. Inflation is seen at 2.2% next year
and 2.4% in 2018. If correct, it
would be the first stretch of
sustained inflation above 2%
Funerals Follow Pakistan Blast
BY JOHN LYONS
Toyota agreed to pay

as much as $3.4 billion to
settle claims some vehicles
lack proper rust protection,
leading to corrosion. B6
An Emirati businessman
launched an e-commerce
business with Saudi Arabias
sovereign-wealth fund. B3
An earthquake struck
New Zealand near the city
of Christchurch, prompting
a tsunami threat. A3
France marked the first
anniversary of terror attacks that killed 130 as Hollande joined survivors at all
six locations targeted. A4
Colombias government
announced a new peace
pact with FARC rebels. A4
Notice to Readers
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products, Personal Journal
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coverage is combined
under Life & Arts. The
Business & Finance section
front reflects the look of
the U.S. edition. Review
articles can now be found
at WSJ.com/life.
CONTENTS
Business & Fin... B1-3, B6
Crossword.............. A12
Finance & Mkts..... B7-10
Heard on Street... B10
Journal Report... B4-5
Keywords................... B1
Life & Arts....... A8-9, A12

Markets Digest..... B8
Opinion.............. A10-11
Technology............... B3
U.S. News............. A5-6
Weather................... A12
World News....... A2-4
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MOURNING: People gathered around the coffins of victims of an explosion that hit a shrine to a Sufi saint in southern Pakistan on
Saturday. Officials say an initial investigation suggests a suicide bomber killed at least 52 people and wounded 106.
THE PLACES THAT MADE TRUMP

Rust Belt counties in economic and social decline rallied to candidates message of restoration
BY BOB DAVIS AND JOHN W. MILLER
WILKES-BARRE, Pa.Tamika Shupp
twice voted for Barack Obama as the
candidate best equipped to shake up
Washington. This year she chose Donald Trump for the same reason.
Obama tried to do well, and it
didnt turn out how we thought, said
Ms. Shupp as she prepared Polish
dumplings at Mom & Pops Pierogis in
this Rust Belt city. Mr. Trump should
do better, she figures, by cracking
down on illegal immigration and up-
holding American values like hard

work.
Mr. Trump is going to be another
Obama, said the 43-year-old Ms.
Shupp. She considers both men to
be agents of change. As for the crude
remarks Mr. Trump made during the
campaign, especially concerning
women, Ms. Shupp said she dismissed
them as bragging and shoptalk, and
she didnt believe the women who accused him of sexual assault.
Wilkes-Barre is in the heart of Luzerne, the Pennsylvania county whose
swing to Mr. Trump on Tuesday was

the states most dramatic, helping to
deliver Pennsylvaniaand the presidencyto the New York businessman. On its own, Luzerne County accounted for 40% of the Republicans
roughly 65,000-vote winning margin
in the state.
The region resembles many counties in the industrial north and Midwest that moved heavily toward Mr.
Trump. What ties them together are
factors such as a decline in manufacPlease see RACE page A7
HONG KONGPresidentelect Donald Trumps promised

trade tariffs on China would
likely hurt U.S. allies Japan and
South Korea, which have become increasingly dependent
on the Chinese market.
Mr. Trump vowed to slap a
45% tariff on all imports from
China if it doesnt alter practices such as subsidizing steel
and other industries, and to
pull the plug on a Trans-Pacific
Partnership, or TPP, a 12-nation
free-trade accord encompassing
Americas chief Asian allies. The
accord effectively died Friday,
and Obama administration officials acknowledged there is
now no way to advance it.
During a 15-year growth
spurt, China became a top export destination for a range of
nations, surpassing the U.S. as
the biggest market for manufacturers like Korea and commodity producers such as Brazil. If China slows because it is
hit by tariffs, it will buy less
from these nations and they
will slow, too.
That raises the stakes for
any trade actions being considered by Mr. Trump and his
aides. In the last 15 years, China
accounted for a third of the
worlds growth, according to
the International Monetary
Fund. Although Chinese importing has slowed recently, the
country still purchased 9% of
the worlds exports last year,
triple its share in 2000.
For many countries around
the world, China is now the
biggest trading partner, so this
kind of tit-for-tat trade protecPlease see ASIA page A2
One Year
After Paris
Attacks
Lock the Door! Your Baby Boomer

Parents Have Decided to Downsize
i
Giant generation has gobs of heirlooms

but no one wants them; the porcelain birds
BY JENNIFER LEVITZ
accumulated treasures. So
they admit they are stealthily
Peculiar items are popping dumping them on their grown
up at the home of Cathy and children.
We dont want to take it to
Mark Schroeckenstein, a
young couple in Minneapolis. the Goodwill; we feel like they
A cement bunny appeared should take it, and they should
want itbut they
on the doorstep. A
dont, said Chrisrusted bakers rack
tine, a retired nurse
materialized on the
who also unloaded
patio. A lamp that is
two porcelain dogs
like so gaudykind
that have been in
of gold and really
the family for genold school was
erations to a daughplopped in the
ter in Denver.
kitchen, says Ms.
This next generSchroeckenstein.
ation just looks at it
The culprits, it
like, what a pile of
turned out, were
An heirloom
crap, she sighed.
her in-laws.
Economists have
David and Christine Schroeckenstein, both in long talked about the great
their 60s, plan to relocate to a transfer of wealth that is unsleek Scottsdale, Ariz., condo der way from the baby boomfrom Minnesota after David, ers to Generation X and milan allergist, retires next lennials. Less noticed is the
month. They have no intention great transfer of tchotchkes,
Please see FAMILY page A7
of lugging decades worth of
BENOIT TESSIER/REUTERS
The U.S. Embassy in Afghanistan temporarily

closed in response to two
Taliban attacks. A4
SHAKIL ADIL/ASSOCIATED PRESS
Foxconn reported a fall

in third-quarter profit. B3
Trump was on the cusp

of naming a chief of staff
who would be key to shaping the next White House
and cabinet. A5
Tens of thousands in the
U.S. took to the streets for a
fourth straight day to protest Trumps election. A5
since before the recession of

2007 to 2009.
The forecasts were collected from 57 academic, business and financial economists
from Nov. 9 to Nov. 11. Their
average forecasts for growth,
inflation and interest rates in
both 2017 and 2018 all rose, at
least slightly, from a survey
conducted before the election
in October.
Mr. Trumps administration
is only beginning to take
Please see OUTLOOK page A6
U.S. Allies
Face Risk
In Tariffs
On China
VW confirmed that investigators are looking

into fresh irregularities related to emissions levels in
certain Audi models. B1
Hundreds of thousands
protested in South Koreas
capital, calling for President Parks resignation
over an alleged influencepeddling scandal. A3
DLR 106.74 g 0.08%
Faster Growth in U.S. Is Forecast
A Singapore court sentenced an ex-banker at BSI

in a probe of 1MDB, the
first conviction linked to alleged fraud at the fund. B7
World-Wide
ASIA EDITION
WSJ.com
REMEMBERING:
People paid their
respects after a
ceremony held for
the victims of the
attacks that hit the
Bataclan concert
hall and a series of
bars, killing 130
people, a year ago.
Thousands gathered
Sunday across the
French capital to
hear the reading of
the names of those
killed. A4
Investors Look to an Altered Landscape

So much for Wall Street hating uncertainty.
Since the Republicans swept
By Colin Barr,
Chris Dieterich
and Corrie Driebusch
Washington, investors have
snapped up stocks and sold
bonds, anticipating a future in
www.ebook3000.com
which President-elect Donald

Trump and Republicans in Congress cut taxes, slash regulation and push through a large
fiscal stimulus.
While the market moves
seem to point to a future in
which stronger growth will finally put ultralow interest
rates behind us, the reflation
trade in which stocks rise and
bonds fall amounts to a roll of

the dice.
That is because investors
are betting that the full Trump
economic agenda will accomplish what the investment
world likes, such as tax relief
and deregulation, while largely
ignoring
the
potentially
growth-reducing impact of
Please see STOCKS page A2
THE WALL STREET JOURNAL.
A2 | Monday, November 14, 2016
WORLD NEWS
Trumpism Leads Down Different Path in EU

Europes antiestablishment politicians have barely
been able to contain their
excitement at Donald
Trumps election victory.
From Frances Marine Le Pen
to Hungarys Viktor Orban to
the U.K.s Nigel Farage, they
have greeted the U.S. president-elects triumph as a validation of their own longstanding opposition to
immigration and free trade.
With a series
of political
tests looming in Europe over
the next
yearstarting with next months Austrian presidential election
and Italian constitutional
referendum and followed by
elections in the Netherlands,
France and Germany in
2017European populist
parties now sense an opportunity to ride to electoral
success on Mr. Trumps coat
tails.
But there is a crucial difference between the U.S. and
European situations. Mr.
Trumps win is likely to pave
the way for a change in U.S.
STOCKS
Continued from Page One
other campaign promises, such
as much tougher stances on
trade and immigration.
The rush out of long-term
Treasurys and into industrial
stocks might already have gone
too far, portfolio managers
warn.
For many money managers,
it is the latest sign of the markets eagerness to call an end
to the era of low rates, even
before a stronger recovery
takes root.
Trades based on rising
growth and inABREAST flation
are
OF THE
probably going
MARKET
to work through
inauguration day,
but then we have to start dealing with the reality, said Scott
Minerd, global chief investment officer at Guggenheim
Partners LLC, an asset manager
with $250 billion under management.
Price declines in the U.S.
long bond, whose yield rose
the most last week in seven
years to 2.928%, have pushed
the 30-year yield near its likely
level when the Federal Reserve
completes its current tightening cycle in two to three years,
Mr. Minerd said. Rates are not
going to continue to go
REUTERS
EUROPE FILE
SIMON NIXON
cards for next year. Similarly,

Rome and Brussels are at
loggerheads over next years
Italian budget as well as the
application of EU rules that
may require bondholders in
some Italian banks to take
losses as part of recapitalization exercises. Policy makers
fear governments may simply decide to ignore EU
rules, daring other governments to punish them and
undermining the political
compromises that have so
far underpinned ECB action.
economic strategy. This can

be seen in the markets initial reaction to his election,
with stocks rising and bonds
falling as investors bet that
his plans for large-scale infrastructure spending would
boost inflation, allowing the
Fed to raise rates sooner and
faster than previously expected. In contrast, electoral
success for populist parties
in the eurozone is unlikely to
lead to any significant
change in economic policy
but is likely to heap further
pressure on the European
Central Bank to continue to
hold the single-currency area
together.
ertainly, there seems
little prospect that a
victory for populist
parties in Europe would lead
to a significant change in fiscal policy. One problem is
that eurozone fiscal rules require eurozone governments
to continue to bring down
deficits and debt levels.
Those countries that have
the fiscal space to provide
more stimulus are those that
need it least: In Germany,
unemployment is below 6%
and there are signs that rising wages are starting to
feed into domestic inflation.
Meanwhile, those countries
with the greatest spare capacity, such as Italy and Portugal, are those with the
least fiscal space. Efforts to
boost centrally directed and
mutually funded infrastructure spending via the so-
Marine Le Pen, shown at a September rally in Frejus, France, leads in polls ahead of next years elections.
straight up, he said.

Yet investors embrace of
the reflation narrative is evident in the scramble out of assets that benefit from low rates
and into those deemed likely to
gain from higher rates.
Dispersion, measuring the
standard deviation of one-day
returns for S&P 500 industry
groups, surged on Wednesday
to the highest since 2008, according to Macro Risk Advisors.
S&P 500 financials climbed
4.1% that day, as investors bet
banks will benefit from rising
long-term interest rates that
tend to fatten their lending
profits and potentially from deregulation that will open new
lending opportunities. Utilities
sank 3.7%, reflecting a bet that
rising rates will diminish the
sectors appeal.
It was the sectors largest
daily gap since 2009.
Investors pulled $400 million from emerging-markets
stock funds and $73 million
from emerging-markets debt
funds in the week ended
Wednesday, according to Bank
of America Merrill Lynch, the
largest in 19 weeks in both
cases.
The iShares TIPS Bond ETF
has pulled in $1.4 billion so far
this month, the biggest monthto-date tally on record, according to BlackRock Inc. TIPS are
inflation-protected government
called Juncker plan have so

far had little appreciable impact on growth.
At the same time, success
for populist parties is likely
to make it even harder for
governments to deliver
growth-enhancing domestic
reforms or overhauls to the
governance of the euro area
that might boost confidence
in its long-term financial stability. Already, populist parties have succeeded in putting new obstacles in the
way of further integration of
the European Union.
For example, in a sop to
euroskeptics, the Netherlands is now obliged by law
to allow a referendum on
any new EU-related legisla-
et the ECB is bumping

up against the limits
of what it can do to
hold the eurozone together.
Even before Mr. Trumps
election, it was facing unpalatable choices over how to
keep its quantitative-easing
program going in the face of
a looming scarcity of eligible
bonds under its strict selfimposed rules. Despite a re-
bonds that increase their payout when inflation exceeds a

certain threshold.
Stephen Cucchiaro, chief investment officer at 3EDGE Asset Management, said his firm
sold emerging-market equity
exchange-traded funds and
gold after the election jostled
both markets.
Its a race against time,
Mr. Cucchiaro said. Will the
economic piece kick in before
the deficit rises and inflation
spikes up?
But buying the financials
and inflation-protected bonds
are trades that investors have
been trying for years with only
occasional success.
Sharp rises in U.S. bond
yields in the spring of 2010 and
the second half of 2013 were
quickly reversed, reflecting the
persistence of soft global
growth, aging populations that
limit consumption and rising
debt loads that constrain
spending.
Over the longer term, the
secular forces on the global
economy dont change, said
Brian Levitt, senior investment
strategist at OppenheimerFunds.
Mr. Levitt said that likely
means that even after Mr.
Trumps election, inflation
doesnt actually go up substantially.
A Trump agenda likely will
provide good news for stock in-
vestors at a time of stretched

valuations and soft growth.
Lower taxes could boost earnings at a time they have been
in decline.
Cutting the effective corporate tax rate to 20% from the
current 26% stands to double
the 2017 earnings growth rate
of S&P 500 companies, Goldman Sachs Group Inc. estimates.
The relief would be welcome. Third-quarter earnings
are on track to rise 2.9% from a
year earlier, snapping a string
of five quarterly declines, according to FactSet.
Still, some analysts warn
that the volatile trading after
the election surprise might
have led to gains that arent
sustainable.
The Nasdaq Biotechnology
Index surged 14% last week, its
best performance since 2000,
reflecting wagers that a Trump
administration will be easier
on drug-price regulation than a
Democratic one.
Connor Browne, a portfolio
manager at Thornburg Investment Management, said that
his firm is trimming biotechnology holdings.
Even within health care,
were not totally convinced
that the positive stock-market
reaction is the correct one, he
said.
Ben Eisen
contributed to this article.
tion if petitioners can secure

300,000 signatures. This device has already been successfully used to block an EU
free-trade deal with Ukraine.
Similarly, the tiny Belgian region of Wallonia last month
nearly torpedoed the EUs
free-trade deal with Canada.
Power Shift
The presidential election upended
some recent market trends.
S&P 500 performance

2200
Oct. 25 through Nov. 4

Longest losing streak
since 1980
t 3.1%
2150
Nov. 7-11
Best week
since 2014
s3.8%
cent rise in bond yields that

has eased immediate scarcity
concerns, policy makers
know that they need to convince markets at a time of
global uncertainty that they
have the tools to respond to
future shocks. Yet all the
possible options involve
breaking political, legal and
technical taboos.
Meanwhile the eurozone
faces a series of challenges
over the next year that could
test its cohesion. There is no
sign of any resolution to the
three-way standoff among
Berlin, Athens and the International Monetary Fund over
debt relief for Greece, without which officials fear a
new Greek crisis is on the
ASIA
tionism with China will
dampen the atmosphere for
the international trading community, said Yorizumi Watanabe, a trade expert and
professor at Japans Keio University. That is no good for
Japan or anyone else.
According to Daiwa Securities, just a 15% tariff on Chinese
goods would result in a onepercentage-point decline in
Chinas growth rateenough,
researchers at the IMF calculated this year, to likely shave a
quarter-point off global growth.
Hardest hit would be nations
such as Japan, Korea and Taiwan, which not only export
goods to China for consumption, but also form a big part of
sprawling international supply
chains for products like Apple
Inc.s iPhone, which are assembled in China.
Asian economies have been
more sensitive to changes in
China than the U.S. since 2006,
according to a recent study by
HSBC comparing the impact on
the region of a one-percent increase in output by the U.S. versus the same increase by China.
China is in the drivers seat
of Asias trade, and its influence
in the immediate region is only
growing, the authors said.
Even if directed at China, a
rise in U.S. protectionism would
hit Korea, a major exporter of
electronics to China. A paper
published by IMF researchers
this month estimates Korea
loses a half percentage point of
growth for every one-percentage-point slowdown in China.
Korea signed a free-trade
agreement with the U.S. in 2010
and could benefit from less
competition if China is hit by
tariffs. But that deal may not
protect Korea, according to
Capital Economics, since Mr.
CORRECTIONS
AMPLIFICATIONS
2100
Election
Day
2050 One-hour intervals

Oct. 25
26
27
28
31
Nov. 1
10
11
Investors sold bonds on expectations of

higher interest rates.
They bought sectors perceived to benet

from less regulation.
And they bet on lower taxes, which could help

earnings continue their recent improvement.
Yield on 10-year Treasury note*
Nasdaq Biotechnology index
S&P 500 quarterly earnings
2.2%
3600
2.0
3200
1.8
Election
Day
1.6
Monday
Tuesday
10% change from year earlier

Since Nov. 4
s 14%
YTD through Nov. 4

t 26%
5
0
2.118%
Highest yield
since January
2800
Five-minute intervals
2400
Wednesday Thursday
Est.
as of
Nov. 11
5
10
J
M A
M J
2014
15
16
*Yields rise as prices fall; U.S. bond market closed Friday

Sources: FactSet (S&P 500 performance and earnings); Thomson Reuters (Treasurys); WSJ Market Data Group (NBI)
U.S. law requires that synthetic-diamond retailers disclose the man-made origin of
the stones. A Business & Finance article Nov. 7 about De
Beers incorrectly said that
synthetic diamonds can be
marketed without any hint of
their provenance.
Among Democrats and Republicans in the U.S., the percentage in each party who see
the policies of the other as being so misguided that they
threaten the nations well-being has grown by 10 percentage points since 2014, according to Pew Research. A Review
article Nov. 7 about political
tribalism incorrectly gave the
rise as 10%.
Readers can alert The Wall Street
Journal to any errors in news articles
by emailing wsjcontact@wsj.com.
ven if the eurozone

dodges these shocks,
European policy makers already fear trouble
ahead if the recovery continues and inflation picks up.
The prospect of higher inflation may ease pressure on
the Fed. But it threatens to
make the ECBs life harder as
it will have to choose between stopping quantitative
easingrunning the risk that
borrowing costs for the most
indebted governments could
rise sharplyor tolerating
above-target inflation, which
could undermine competitiveness and living standards
in Germany. That could blow
political tensions into the
open.
The ECB has so far allowed politicians to duck
hard decisions. But some decisions cant be ducked for
much longerand may have
to be confronted at a time
when European politics is
least able to respond.
Trump has called it a disaster

and is against such accords in
general.
Japan also faces multiple
risks. The worlds third-largest
economy had been banking on
the TPP to boost access to the
U.S. and help end its long stagnation.
Like Korea, Japan is also a
major exporter to China. And
its highly globalized car manufacturers such as Toyota Motor
Corp. and Nissan Motor Co.
would be hit hard if Mr. Trump
follows through with plans to
renegotiate the North American
Free Trade Agreement, since
many Japanese cars are assembled in Mexico for export to the
U.S.
What is more, the uncertainty caused by changing U.S.
policies could strengthen the
Japanese yen, a safe-haven currency, further eroding the countrys exports.
It is far from clear how much
of Mr. Trumps campaign rhetoric will become policy. Many
observers have suggested the
70-year-old real-estate tycoon
may simply use his threats of
big tariff increases to negotiate
smaller concessions. They cite
the fact that higher tariffs on
Chinese goods would mean U.S.
consumers paying more for
clothing and electronics.
My guess is there will be
some negotiations or renegotiations, but we will avoid the
most extreme outcomes, though
the long-term tendency is toward increased protectionism,
HSBC economist Joseph Incalcaterra said.

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Monday, November 14, 2016 | A3
WORLD NEWS
Pressure Grows on Korean Leader

Hundreds of
thousands take to the
streets to demand
presidents resignation
SEOULThe popular rejection of the political establishment that drove the U.Ks
Brexit vote and Donald
Trumps victory in the U.S.
presidential election is being
felt in South Korea, where
hundreds of thousands of people took to the streets of Seoul
over the weekend to call for
the resignation of President
Park Geun-hye.
Ms. Park is being targeted
by protesters for appearing to
allow a close friend to influence government decision
making, even though no formal claims of wrongdoing
have been made against the
president. Prosecutors plan to
question Ms. Park early this
week, an official said, in what
would be a first for a sitting
South Korean president.
Police said the demonstrators numbered about 260,000
people, while protesters said
there were as many as one
million. The action in Seoul
which was accompanied by
smaller rallies in other South
Korean citieswas the largest
since mass demonstrations
forced out the nations military leaders in the 1980s.
While public anger at the
LEE JAE-WON/AFLO/ZUMA PRESS
BY ALASTAIR GALE
Protesters massed in Seoul on Saturday, in the largest mass demonstrations since the 1980s.
accusations began last month,
the latest demonstrations have
attracted a much wider range
of protesters than previous
rallies.
The thread that links them:
frustration at the political and
economic status quo.
Ms. Parks family is as well
known in South Korean politics as the Clinton and Bush
dynasties are in the U.S. Her
father ruled for almost two
decades after he staged a military coup, and Ms. Park became de facto first lady after
her mother was killed by an
assassin targeting her father

in 1974.
Ms. Park has been a leading
figure in the ruling conservative party for many years, but
her public-approval rating recently fell to 5%, the lowest
recorded for any South Korean
president. To many Koreans,
she is seen as detached and
more closely allied with bigbusiness interests than those
of average people. She rarely
gives media interviews and relies on a small group of advisers for policy decisions.
Among the throngs of pro-
testers were students angry at

a lack of graduate jobs as
blue-chip companies have
moved much of their operations and hiring overseas to
lower-cost countries. South
Koreas 10 largest business
groups accounted for only
3.6% of employed workers in
the country as of the end of
last year, according to government data.
Saturdays protest was also
significantly swollen by a large
contingent of trade unionists,
who are angry about government plans to loosen labor
New Zealand
Shaken by
Strong Quake
laws to make hiring and firing

easier for companies, and
farmers worried about reductions in government protection for agriculture.
South Korean farmers have
in recent years opposed freetrade deals with the U.S. and
China. On Saturday, some protesters held up banners criticizing the government for not
propping up falling rice prices.
Meanwhile, as in the U.S. and
U.K., cornerstone manufacturing businesses in South Korea,
such as shipbuilding, have
been hollowed out by global
competition, triggering concerns about mass job losses.
With the next presidential
election not due until the end
of next year and Ms. Park still
considered by many analysts
as unlikely to resign, South
Korea doesnt appear set for a
dislocation like U.K. voters
decision to leave the European
Union or Mr. Trumps presidential victory.
But the voices of discontent
with entrenched political and
economic forces are arguably
just as loud in South Korea.
To make themselves audible
to Ms. Park late Saturday
night, protesters got within
several hundred meters of her
residence before being held
back by police. A presidential
spokesman said Sunday that
Ms. Park heard the voices of
the people yesterday with
gravity and deeply realizes the
seriousness of the current situation.
BY DAVID WINNING
AND LUCY CRAYMER
A powerful earthquake
struck New Zealand near the
city of Christchurch, causing
strong jolts felt more than 120
miles away and prompting a
tsunami threat along the countrys east coast.
The quake, which the U.S.
Geological Survey recorded as
magnitude 7.4 but later raised
to 7.8, struck just after midnight Monday and was centered 93 kilometers (57 miles)
northeast of Christchurch, on
the countrys South Island.
New Zealands Ministry of
Civil Defence and Emergency
Management said on its verified Twitter account that a
tsunami threat covered all of
New Zealands east coast, including Christchurch, Wellington and the Chatham Islands,
and urged people in those areas to move to high ground or
go inland.
New Zealand Police said
one casualty had been reported at a collapsed property
in Kaikoura, a coastal town on
the countrys South Island.
Authorities
said
they
wouldnt have a fuller picture
until after dawn. In Wellington, people were urged not to
travel into the capital city as
train and ferry services were
suspended and some roads
could be blocked.
BY SARA SCHONHARDT
DUMAI, IndonesiaLate
last month, a fire patrol here
was hard at work battling
small blazes on the dried-out
bogs that make eastern Sumatra island infamous as a major
source of Southeast Asias perennial, choking haze.
Members of the local fire
brigade and a soldier together
with young volunteers sucked
water from a nearby canal
with a hose. For about an
hour, they moved across the
scrubland, tackling flames that
popped up even before the
ones they were fighting were
extinguished. They had been
at it for weeks.
Even if we put the fire out
today, we have to go back tomorrow to make sure it is out
completely, said Rahmad,
who goes by one name, pointing to haze hanging above the
tree line as they prepared to
head back to base just outside
the coastal city of Dumai.
Their limited progress highlights the herculean task facing Indonesia as it confronts
one of the worlds worst deforestation problems, one
fueled in large part by global

demand for some of the countrys major exports: palm oil,
pulp and paper.
For years, villagers, midsized landholders and plantation owners alike have used
slash-and-burn as the cheapest, fastest way to clear land
for agriculture and development. Such fires can smolder
for weeks in the carbon-rich
peatdeep layers of decayed
vegetation built over thousands of yearsgenerating
thick clouds of smoke that
threaten the health of millions
of people regionwide.
Last year the fires consumed around 6 million
acresan area bigger than the
state of New Jerseyand created a haze visible from space.
For 26 days, they also released
more greenhouse gases into
the atmosphere a day than the
U.S. economy, according to the
World Resources Institute.
At climate talks in Paris a
year ago, President Joko
Widodo signaled Indonesia,
the regions largest economy,
would overhaul the way it
manages its forests to help cut
its greenhouse gas emissions
IVAN DAMANIK/ZUMA PRESS
IndonesiaTriesNewTacticstoDouseAnnualFirestorms
Motorists ride through haze created by fires in dried-out bogs in August.

by 29% by 2030. Lawmakers
here ratified the pact that
came out of those talks last
month.
National police said more
than 450 people suspected of
starting fires have been arrested this year, from around
220 last year. Conviction can
bring jail time of up to 10
years and a fine up to 10 billion rupiah ($765,000).
The Ministry of Environment and Forestry also has

been stepping up prosecutions
of companies.
A Jakarta court in August
levied a record fine of 1 trillion rupiah (about $80 million) against a subsidiary of
agribusiness PT Sampoerna
Agro Tbk for environmental
damage caused by fires.
The company is appealing
China Clamps Down on Private Schools

BEIJINGA legal change
that bars for-profit schools for
younger students and seeks to
ensure schools are run in a
way supportive of socialism
threatens to send a chill
through Chinas booming private-education sector.
Private schools have exploded in Chinese cities in recent years, drawing families
seeking alternatives to an education system often criticized as
rigid. While the overwhelming
majority of students attend
public schools, private schools
now run the gamut from ones
serving the children of migrant
workers to high-end preparatory institutions grooming students to go abroad.
Education professionals and
private-school directors say
the changes to the law on private schools passed this week
by Chinas legislature may
dampen enthusiasm to set up
new schools and even prompt
some existing ones to close.
The revisions bar for-profit
schools for children in the first
nine, compulsory years of their
education, and drop a provision that schools can make a
reasonable rate of return.
The law may be motivated
in part by a central-government desire for more influence
in education, said Peking University education professor
Yan Fengqiao. With public
schools, the government can
require you to have certain
classes, or transmit a certain

way of thinking, he said. But
for-profit ones arent as easy
to control.
The revised law calls for
more activities focused on the
Communist Party and stronger
party infrastructure in private schools, the better to ensure private schools are run
from start to finish in a way
supportive of socialism, according to an Education Ministry release that didnt elaborate on the brief mention. The
ministry didnt respond to a
request for comment.
Jiang Xueqin, an education
researcher, said the wording
dovetails with the governments overall push for the
core Chinese curriculum, including on history and ideology, at all schools, public and
private. You need a mechanism to monitor and make
sure those regulations are being enforced, he said.
Chinas government said
the Promotion of Private Education law is actually intended to spur private-school
growth, according to Wu Hua,
who heads Zhejiang Universitys Research Center of Private Education. If you dont
let private schools offer highquality education, youre just
pushing
more
students
abroad, he said.
Nevertheless, Mr. Jiang
said, This may force a lot of
ZHAO YUGUO/SIPA ASIA/ZUMA PRESS
BY TE-PING CHEN
Chinese primary-school students learn about traditional culture.
schools out of business, basically, and a lot of people who

wanted to invest in schools
are now having second
thoughts.
Jack Hsu, CEO of the Ivy
Group, which runs a national
network of private schools,
said that the change at least
provided some clarity in an
area that had lacked clear legislation. He said his company
would likely invest more in
private preschools, a market it
sees doubling to more than
$100 billion by 2020.
Chen Changhe, vice-head of
the Beijing-based Xin Xuexiao
education-research institute,
said it was up to local jurisdictions to implement the law, so
those that have encouraged
private educationincluding
wealthier southern and coastal
citiescan continue to do so
by providing schools with subsidies or other incentives.
Nationwide, the Ministry of
Education says some 45.7 million students are enrolled in
163,000 private schools.
As incomes have risen
across China, so have the
number of parents opting out
of the public-school system.
The number of Chinese students in U.S. schools, for instance, more than tripled to
over 300,000 between 2008
and 2015, according to the Institute of International Education. In recent years, parents
have sought to enroll their
children overseas at increasingly young ages.
www.ebook3000.com
the verdict at the high court in

Jakarta.
The Supreme Court this
year rejected the appeal of a
palm-oil company in Aceh that
was fined around $26 million
in 2014 for illegal burning.
Officials say such cases act
as significant deterrents. But
researchers and activists say
corruption, moneyed interests
and a lack of evidence has de-
terred other investigations.

In late summer, a government team investigating reports of burning on a palm-oil
plantation in Riau province
was taken hostage and threatened by contracted farmworkers until they agreed to destroy the photos and videos
they had collected.
Officials are still investigating the case, said Rasio Ridho
Sari, director general at the
environment ministrys lawenforcement division.
Some experts recommend
alternative approaches, such
as distributing cheap landclearing machinery and rewarding villages that dont set
fires to raze landan approach being tested by some
companies and aid groups.
Meanwhile, the government
is using drones and satellite
images from NASA and other
sources to better detect and
investigate hot spots. It has
established a peatland restoration agency tasked with rewetting about 5 million acres and
installing sensors to track
those efforts.
Ben Otto in Jakarta
HK JP
KO ML
SI
IN UK
FR
MN PR
WORLD NEWS
Colombia, Rebels Reach New Peace Pact

The deal capped weeks
of talks that followed
voters rejection
of an earlier accord
BOGOT, ColombiaColombian President Juan Manuel Santoss government announced a new peace pact
with the Marxist FARC rebel
group, capping six feverish
weeks of negotiations after
Colombian voters narrowly rejected an earlier deal.
The new accord with the
FARC, or Revolutionary Armed
Forces of Colombia, would include much of what had been
agreed upon in the earlier
pact, which was to be a pillar
of Mr. Santoss administration.
The government and rebel
commanders did make changes
to several points in the original agreement, from requiring
the rebels to surrender money
and holdings from their criminal activities to providing
safeguards for private owners
as part of a modernization of
the countryside.
This accord is better, said
Humberto de la Calle, the governments chief negotiator,
from Havana, Cuba, where the
talks took place. He stressed
that the two sides had to move
fast, negotiating as thousands
of anxious guerrillas were in
limbo, awaiting word of when
they could begin to congregate
their forces to disarm.
We are convinced this document provides viable and
possible paths to end so many
GUILLERMO LEGARIA/AGENCE FRANCE-PRESSE/GETTY IMAGES
BY JUAN FORERO
Celebrations erupted in Bogot on Saturday night after the government and Marxist rebels signed a new peace agreement.
decades of conflict, he said.
In an Oct. 2 plebiscite, voters rejected the original accord signed between negotiators and the FARC after four
years of talks in Cuba. In response, Mr. Santos had to attempt to revive talks for a new
deal to end 52 years of conflict, but also make a goodfaith effort to incorporate concerns raised by the bloc that
won the No vote, led by for-
mer President lvaro Uribe.

The parties to the agreement got the messageyou
have to go back to the drawing
board, said Alejandro Eder, a
former government negotiator.
To just push it through was
not an option. They had to
tighten the accord up.
The new accord will be presented to Congress for a vote
and then be implemented, a
process that would lead to the
disarmament of about 6,000

FARC fighters. The deal also
calls for infrastructure development for the countryside, provides the FARC with up to 10
seats in Congress and calls upon
the rebels to work with the
state to fight drug trafficking.
It is likely, though, that
there will be sharp criticism
of the deal by Mr. Uribe, who
had warned that the pact
couldnt be lenient on the reb-
Afghan Attacks Close U.S. Embassy

BY JESSICA DONATI
AND EHSANULLAH AMIRI
WORLD WATCH
uncertainty over how the policy
stance of U.S. President-elect Donald Trump will affect South Koreas
trade-reliant economy.
The bank has held the rate
steady at a record-low of 1.25%
since June. Few had expected the
bank to move especially ahead of a
widely expected U.S. rate increase
in December.
Kwanwoo Jun
JAPAN
Tokyo, Delhi Agree

To Boost Ties
OMAR SOBHANI/REUTERS
DUBAIThe U.S. Embassy

in Afghanistan temporarily
closed on Sunday in response
to Taliban attacks that killed
four people inside a highly
fortified U.S. military base
north of Kabul and seven in
the vicinity of the German
consulate in the northern city
of Mazar-e-Sharif.
A Taliban suicide bomber
infiltrated layers of security at
Bagram Air Field and detonated explosives inside the
base on Saturday, killing four
Americans, including two service members, and wounding
16 U.S. service members and
one Polish soldier, Afghan and
coalition officials said.
The attack followed another
high-profile incident in the
north of the country late
Thursday, when a Taliban suicide bomber rammed a truck
laden with explosives into the
German consulate in Mazar-eSharif, killing at least seven
people and wounding more
than 100 othersthe majority
local residents.
The U.S. Embassy said Sundays closure was a temporary
precautionary measure.
It wasnt clear how the insurgent succeeded in bypassing security at Bagram Air
Field, one of the U.S. militarys
largest and most heavily
guarded bases in Afghanistan.
els. On Saturday afternoon,

after meeting with Mr. Santos, Mr. Uribe read a statement in which he called on
the accords to be presented to
his side and remain open to
modification.
Mr. Uribes party, the Democratic Center, had already
proposed dozens of changes to
the accord in public statements and in meetings with
Mr. Santoss negotiators.
The U.S. closed its embassy in Kabul on Sunday after deadly attacks across the Afghanistan.
The attack brought the
number of Americans killed in
Afghanistan over the past
month to eight, including five
service members. In October,
an Afghan soldier killed a U.S.
sergeant and a U.S. civilian at
a base in Kabul. Last week,
two U.S. special forces soldiers
were killed and two were
wounded when they were ambushed during a raid on local
Taliban leaders in northern
Kunduz province.
The Taliban, the Islamist
group that is leading an increasingly deadly insurgency
against Afghanistans foreignbacked government, claimed

responsibility for the attack at
Bagram Air Field and said it
had killed and wounded a high
number of U.S. troops.
The attack reflected the
Talibans ability to strike at
the heart of the U.S.-led coalition as it gains ground against
Afghan army and police forces
around the country.
The suicide bomber at Bagram Air Field was dressed as
a day laborer and detonated
the explosives in the vicinity
of a dining facility around 5:30
a.m., according to a foreign security source. The sprawling

base, which contains tens of
thousands of contractors, is
often targeted by Taliban
rockets and attacks on patrols
near the base, but suicide
bombers hadnt previously
succeeded in breaching the
outer layers of security.
In December, a Taliban suicide bomber killed six U.S.
troops on patrol in the vicinity
of the base, and in June that
year a rocket struck a civilian
vehicle inside the base, killing
a female contractor.
Those proposals, some of

which called for tougher sanctions on the rebels, were then
presented to the FARC commanders in Havana.
One of Mr. Uribes allies,
presidential hopeful Carlos
Holmes Trujillo, said recently
that pushing through a pact
with only cosmetic changes
would be a great error.
The government can do it,
but it would ignore a historic
opportunity, he said, referring
to the possibility of what he
hoped would be a far-reaching
new accord. It would leave
Colombian divided.
Mr. Santos, in a speech Saturday night, said 500 proposals were discussed and
changes were made in 56 of 57
thematic areas.
Under the new agreement,
foreign judges were eliminated from participating in
the new judicial system for
those accused of war-related
crimes and there is explicit
language laying out how the
FARC chieftains would be
confined as punishment for
crimes. On the political
front, the rebels made concessions, including receiving
less state money for the political party that the accord
allows them to form.
Rebel chieftains responsible
for atrocities, though, would
still be able to run for office.
I have to be frank, Mr. Santos said in his speech, We
couldnt make headway there.
Many opponents of the
original pact said that opening
the door to politics for the
FARC is what drove them to
vote No on Oct. 2.
Japan and India agreed to

strengthen their economic, energy and defense relations, as
the election of Donald Trump
spawned concern the U.S.
would retreat from its role as
a guarantor of trade and stability in Asia.
After a meeting in Tokyo between Indian Prime Minister
Narendra Modi and Japanese
Prime Minister Shinzo Abe on
Friday, the two sides said they
agreed on exporting Japanese
nuclear and high-speed-rail
technology to India. They said
they also advanced talks on a
sale of Japanese amphibious
rescue aircraft to the Indian
Navy and building training programs for 30,000 Indians over
the next 10 years.
The atomic-energy agreement would allow India to fulfill
its pledge to reduce its greenhouse-gas emissions under the
2015 Paris climate accord, from
which Mr. Trump has said he
wants the U.S. to withdraw.
Mitsuru Obe
BANGLADESH
Manila Returns
Stolen $15 Million
Philippine authorities returned $15 million of $81 million
stolen from Bangladeshs account at the Federal Reserve
Bank of New York in a February
cyberheist, the first time the
South Asian country has been
able to retrieve any of the stolen money.
Abu Hena Mohammad Razee
Hassan, deputy governor of
Bangladeshs central bank, said
the cash was delivered to the
Bangladeshi embassy in Manila
by officials of the Philippine central bank and the countrys AntiMoney Laundering Council.
The $15 million in cash had
been kept in a vault at the
Bangko Sentral ng Pilipinas, the
Philippine central bank, since
May, when casino operator Kim
Wong, whom investigators have
described as a suspect in the
case, turned over the cash to
Manila authorities.
Syed Zain Al-Mahmood
SOUTH KOREA
Central Bank Keeps

Rates at Record Low
The Bank of Korea kept its
base rate unchanged for a fifth
straight month in November amid
Paris Remembers Victims on First Anniversary of Attacks

PARISFrance marked the
first anniversary of the terror
attacks that claimed the lives
of 130 people last November,
as French President Franois
Hollande joined survivors and
families of the fallen at all six
of the places targeted by Islamic State.
Thousands of people gathered across the French capital
on Sunday to hear the reading
of the names of those who
were killed when a group of
terrorists ripped through the
city on Nov. 13 last year.
The suffering is palpable
today, said Caroline Langlade,
who survived the attack on the
Bataclan concert hall last year.
It is very hard. We know the
faces and the stories behind
all of the names.
Mr. Hollande and Paris
Mayor Anne Hildalgo laid
wreaths and unveiled plaques
at each of the locations, where
a minutes silence was observed under an overcast sky.
The attacks have wounded
the national psyche and ignited a debate over how the
country can remain a beacon
of civil liberties while tightening its security dragnet.

The attacks led France to
declare a state of emergency
and erect a peacetime security
apparatus on the fly. Soldiers
now patrol the streets of Paris,
security workers conduct bag
checks in front of cinemas and
grocery stores, and the government has reinstated border
controls.
French Prime Minister Manuel Valls said Sunday that the
state of emergency would
likely be extended by a few
months in January, when it is
due to expire.
France has been on the receiving end of a spate of large
terror attacksfrom the
shootings at Charlie Hebdo in
January 2015 to the attack in
Nice that killed 86 people in
Julythat have emboldened
the far-right.
Marine Le Pen, leader of
the right-wing National Front,
told the BBC that Donald
Trumps victory in the U.S.
presidential election had
boosted her own hopes by
making possible what had
previously been impossible.
Polls show Ms. Le Pen would
easily win the first round of

Frances presidential elections
in May, pitting her against the
leading center-right candidate
in the runoff.
Mr. Hollandes rivals have
accused him and his left-wing
government of not doing
enough to stop the attacks.
Some conservative politicians
have called for exceptional
changes to French law to ban

Islamist symbols and to detain
people deemed radical without
a court order.
Mr. Hollande has rejected
those calls, saying France
would defeat its enemies while
defending civil liberties.
With less than eight
months until the French elections, Mr. Hollande didnt
speak at the ceremonies, respecting the wishes of victims

who were concerned the commemorations could become
politicized.
Only one person spoke at
the ceremonies: the son of
chauffeur and avid soccer fan
Manuel Dias who was the only
person who died at the Stade
de France when a suicide
PHILIPPE WOJAZER, PRESS POOL
BY NICK KOSTOV
President Franois Hollande laid a wreath Sunday at one of the sites hit in last years Paris attacks.
bomber blew himself up. Michael Dias issued a rallying cry

for France to unite in the fight
against Islamic terrorism.
We must combat stigmatization and division. Integration is the answer, he said.
Events took place across
France over the weekend to
mark the anniversary of the
attacks. On Saturday, a Sting
concert at the Bataclan at
once honored the 90 who died
in the attack there and celebrated the theaters revival. A
minutes silence was also observed at the soccer match between France and Sweden at
the national stadium.
Gregory Reibenbergthe
owner of La Belle Equipe restaurant, where a dinner party
of his family and friends was
wiped out by terrorist gunfirestayed away from the
commemorations and said he
instead had lunch with 10 of
his loved ones.
Other than making me cry,
the commemorations arent
going to do a lot for me, he
said. I prefer to cry on my
own at home. When Im with
others, Id rather share
laughs.
U.S. NEWS
BY YUKA HAYASHI
AND CAROL E. LEE
U.S. President-elect Donald
Trump was on the cusp of making the first announcement of
his administration, a chief of
staff who would be key to shaping the 45th presidents White
House and cabinet.
Steve Bannon, the Trump
campaign chairman and a conservative media executive, and
Republican National Committee Chairman Reince Priebus
are the leading candidates for
the chief of staff post, said
Newt Gingrich, one of Mr.
Trumps closest advisers. He
has to surround himself with
people who he is comfortable
and make the system work for
him, the former House GOP
leader said Sunday on CBS.
Mr. Gingrich said he expects Messrs. Bannon and
Priebus to hold very significant positions in the new administration no matter who
becomes chief of staff. My
point is you can imagine some
system where one of them is

managing the daily traffic and
the other is dealing with the
biggest problems. Thats sort
of what President Obama developed over his presidency.
Mr. Trumps campaign manager, Kellyanne Conway, said
the announcement would
come imminently.
She said Mr. Bannon has
been the general of Mr.
Trumps campaign. Bannon
has a background as a naval
officer, Goldman Sachs managing partner and he has been
successful in Hollywood as
well, Ms. Conway said on Fox
News Sunday. People dont
know that about him.
Ms. Conway, speaking to reporters at Trump Tower in New
York on Saturday, also said Mr.
Trump may travel to some
states next week to thank his
supporters. Were working on
the schedule. We feel busier
than ever, she said.
Mr. Trump has spoken with
a number of world leaders
since winning the election but
Ms. Conway said she wasnt
aware if he has spoken with
Russian President Vladimir
Putin. Mr. Trump is enjoying
time with his family and has
been making phone calls, giving interviews and holding
President-elect Donald Trump

meetings since the election,
Ms. Conway said. Among them
was a meeting with Nigel
Farage of the UK Independence Party, a leading proponent of Britains decision to
leave the European Union.
I think they enjoy each anothers company and they absolutely had an opportunity to
talk about freedom and winning and what this all means
for the world, Ms. Conway
said about Mr. Farages discussion with the president-elect.
Mr. Farage is the first U.K.
official Mr. Trump has met
with in person since he won
the election on Tuesday. The

two struck up a rapport during the campaign, when they
appeared together at a rally.
Mr. Trump has referred to Mr.
Farage as Mr. Brexit.
In an interview with the CBS
news program 60 Minutes,
Mr. Trump suggested he would
continue using social-media
outlets such as Twitter after he
is sworn in. His often unfiltered
commentary on his Twitter account reflected his campaign
style in the past 18 months,
hurling commentary and occasionally insults at critics.
It does get the word out,
he said in the interview.
When you give me a bad
story or when you give me an
inaccurate storyI have a
method of fighting back.
Mr. Trump also reaffirmed
his pledge to deport or jail some
undocumented
immigrants.
What we are going to do is get
the people that are criminal and
have criminal records, gang
members, drug dealers, where a
lot of these people, probably
two million, it could be even
three million, we are getting
them out of our country or we
are going to incarcerate, he
said on 60 Minutes. But
were getting them out of our
country, theyre here illegally.
Dozens of Court Seats to Be Filled

BY JOE PALAZZOLO
The vacancy on the U.S. Supreme Court may be the most

talked-about empty seat in the
federal judiciary, but dozens
more await Donald Trump and
his White House throughout
the lower courts, including
federal courts of appeal.
President Barack Obama
tipped the balance of the appeals courts in favor of Democrats in his two terms, tapping
a group of judges who are
likely to be protective of his
programs and policies.
Whether Mr. Trump can re-
store a Republican advantage

will depend on how quickly he
can start up the machinery for
selecting and vetting judicial
nominees and how much time
the Senate is willing to yield
to the process.
Republican-appointed judges
held majorities on nine of the 12
regional appeals courts when
Mr. Obama entered office. He
will leave office having created
majorities of Democratic-appointed judges on eight of the
12, according to Sara Schiavoni,
a professor at John Carroll University who studies judicial politics and selection.
Mr. Trump, who has promised to appoint judges in the

mold of the late Supreme
Court Justice Antonin Scalia,
will enter office with at least
16 vacancies on the federal
courts of appeals, the last stop
for the vast majority of federal
cases. Many more could open
during his administration, as
judges consider whether to
take a form of semiretirement
called senior status.
Forty-eight federal appellate
judges became eligible for senior status during Mr. Obamas
two terms and could step down
from full-time work or resign at
any time, according to Russell

Wheeler, a fellow at the Brookings Institution who studies
federal courts.
They dont have to, however. Judicial appointments
are for life, and at least 25
full-time appellate judges who
plan to be on the bench for
the start of Mr. Trumps presidency have been eligible for
senior status since Mr. Obama
entered office. Researchers
have found that veteran judges
are more likely to step down
when the party of the president who appointed them regains the executive branch.
www.ebook3000.com
Tens of thousands of people

around the country took to the
streets for a fourth straight
day to protest the election of
Republican Donald Trump as
the next U.S. president.
By Pervaiz Shallwani,
Kate King
and Trisha Thadani
In New York, an estimated

25,000 people covered a 20block stretch of Fifth Avenue
on Saturday outside Trump
Tower, the 58-story skyscraper
fortified by the New York Police Department and U.S. Secret Service agents.
Two people were arrested,
both for trying to hop over a
police barricade, a senior police
official said. Demonstrators
have converged on Trump
Tower daily since Mr. Trump
was elected Tuesday. Saturdays
protest was the largest to date
but also orderly, the police official said. On Wednesday, police
arrested 65 people, almost all
for not following orders to stay
out of the street.
In Los Angeles, about 8,000
people swarmed into the citys
downtown in one of the largest anti-Trump gatherings on
the West Coast. Throngs of
peopleincluding many families
and
childrenfilled
Wilshire Boulevard, a major
city thoroughfare. Protesters
held signs with slogans that

have become familiar in the
past few days: Not My President and Reject Hate.
Unlike past nights in L.A.
when protesters blocked freeways and dozens were arrested, the Saturday afternoon
protest was peaceful.
Though the largest protests
have occurred in blue-state
metropolises such as L.A.,
New York, Oakland and Chicago, there have been smaller
demonstrations in red-state
cities, including Dallas, Phoenix and Atlanta.
Demonstrations also took
place internationally. About
300 people protested Mr.
Trumps election outside the
U.S. Embassy near the landmark Brandenburg Gate in
Berlin. In Mexico City, a group
gathered at the citys Independence monument, expressing
concern about a possible wave
of deportations.
During a protest in Portland, Ore., early Saturday
morning, a man was shot and
injured after a confrontation
with a driver. Police said they
arrested two teens in connection with the shooting, but the
motive for the shooting is unclear. Despite the pleas from
city leaders to refrain from violent
protests,
dozens
marched in Portland again
Saturday night.
BRYAN SMITH/ZUMA PRESS
Campaign chief and

RNC head are being
considered for the job,
Trump adviser says
RON SACHS/CNP/ZUMA PRESS
Protesters
Staff Chief Pick Seen Soon Election
March in Several Cities
Protesters marched again on Saturday at Trump Tower in New York.
U.S. NEWS
Deradicalization May Get Court Backing

BY NICOLE HONG
The future of deradicalization programs in the U.S. faces
a pivotal juncture this week,
when a federal judge in Minnesota will decide the appropriate sentence for nine convicted
Islamic
State
sympathizers.
U.S. District Judge Michael
Davis, a senior federal judge in
Minneapolis, took an unprecedented step before the sentencings. He asked a deradicalization expert from Germany
to come to the U.S., interview
six of the nine defendants, all
Somali-Americans in their 20s,
OUTLOOK
shape, and many economists
cautioned their estimates are
tentative. Anyone who tells
you they absolutely know what
will happen under a Trump
presidency is probably lying,
said Megan Greene, chief
economist at Manulife Asset
Management.
The priorities of the incoming administration and congressional Republicans are being hashed out. Ms. Greene
notes the policies Mr. Trump
could enact the most quickly,
such as restricting trade or
immigration, could do swift
harm to the economy. The
source of the current optimism is tax cuts and infrastructure plans, but these
would take longer to implement because they would need
to go through Congress.
Mr. Trump and GOP congressional leaders share goals
of cutting taxes and reducing
regulations. Most economists
believe tax cuts, especially if
not accompanied by spending
reductions, would produce a
short-term boost to economic
growth. His proposals to increase infrastructure spending, if successful, could lead to
a large boost in construction
employment, with spillover effects for other industries.
and determine whether they

would be good candidates for
a reduced prison sentence.
If Judge Davis decides to
send any of the defendants
into a deradicalization program instead of prison, it
could set the model for other
federal officials grappling with
how the legal system should
treat young people with a desire to join Islamic State. It
would also raise immediate
uncertainties about the logistics of such a program, including who would fund it or be
responsible for any failures.
Such a move is absolutely
new in the U.S., said Daniel
Koehler, the expert hired by

Judge Davis. Dr. Koehler, who
started his career counseling
neo-Nazi extremists in Germany, runs a nonprofit there
that helps implement deradicalization programs.
Since early 2014, more than
100 Americans have been arrested for crimes connected to
Islamic State. These defendants are mostly U.S. citizens
in their early 20s and often
charged with crimes that carry
a maximum of decades in
prison, meaning they will be
released back to society as
middle-aged adults.
Law-enforcement officials
are recognizing that the previous one-size-fits-all solution of

a lengthy prison sentence isnt
the right approach for everyone. Given their youth, many
Islamic State sympathizers
still have time for rehabilitation, defense lawyers say, but
federal prisons lack counseling
resources geared specifically
at terrorism disengagement.
There are very few deradicalization experts or nonprofits
in the U.S., spurring law-enforcement professionals such
as Judge Davis to come up
with their own solutions.
These efforts are now happening against the backdrop of
Shifting Gears
The election of Donald Trump has caused economists to reassess their economic forecasts. Real growth,
ination and bond yields are now expected to rise faster in coming years.
Annual change in real GDP
Annual change in ination
10-year bond yield
3.5%
3.5%
3.5%
Forecast
3.0
3.0
Forecast
2.5
2.5
2.5
2.0
2.0
2.0
1.5
1.5
1.5
1.0
1.0
1.0
0.5
0.5
0.5
0
2012 13 14 15 16 17 18
Forecast
3.0
201213 14 15 16 17 18
2012 13 14 15 16 17 18
Postelection Forecast Change

2016
0.02%
2017
0.04
2018
0.25
0.1% 0 0.1 0.2 0.3
2016
0.05%
2017
0.03
2018
0.15
0.1% 0
0.1 0.2 0.3
Sources: St. Louis Federal Reserve (historical data); WSJ economist survey (forecasts)
The economic impacts of

eliminating or significantly altering the Affordable Care Act
depend crucially on what the
nations health-care system
looks like afterward.
It is unclear how much congressional Republicans support Mr. Trumps proposals to
curtail immigration, restrict
trade or significantly boost
spending on infrastructure.
In recent years, an assumption of ongoing congressional
gridlock underpinned most

economic forecasts. Republican leaders in Congress fought
most of Democratic President
Barack Obamas initiatives,
particularly those that would
increase the deficit.
Budget battles frequently
lasted until the 11th hour,
stoking fears that U.S. Treasury bonds could go unpaid. In
2013, the battles shut down
the government for more than
two weeks. Now that Republi-
2016
2017
2018
0.1% 0
0.23
0.19
0.1
0.2
0.31
0.3
cans are in control, theres no

concern about debt and deficits, said Steven Blitz, chief
economist at Pangea Market
Advisory. Earlier this year, Mr.
Blitz feared the economy could
easily tip into recession but
said a combination of tax cuts
and rising spending would reduce that risk.
Over the past year, forecasters consistently fretted that a
severe slowdown in international growth was the biggest
a transition in power in Washington. The incoming administration led by President-elect

Donald Trump is expected to
be less supportive than the
Obama administration of deradicalization or treatment
programs for terrorism defendants, legal experts say.
The nine men facing sentencing next week were accused of supporting Islamic
State to varying degrees.
Many of them bought plane
tickets to Turkey with Syria as
the ultimate destination, and
were arrested and detained by
law enforcement before they
could board planes. Some
risk to the U.S. Not anymore.
In the post-election survey,
65% of economists said the
factors likeliest to knock the
economy off course were potential White House missteps.
The potential for a trade
war topped the list. It was
cited as the biggest risk to the
economy by 43% of economists. A move from the U.S. to
impose tariffs on foreign nations could lead to a spiral of
rising trade barriers, higher
import prices and shrinking
markets for U.S. exporters.
Everyone will lose if there
is a global trade war, said Jim
OSullivan, chief U.S. economist at High Frequency Economics.
Other economists remain
worried about the potential for
business investment to deteriorate further. Business investment in equipment and structures has declined over the past
year, partially attributed to uncertainty about the policy outlook after the election.
Uncertainty on major policy issues limits hiring and investment decisions, said Robert Dietz, chief economist at
the National Association of
Home Builders.
Overall, respondents to the
Journals survey see about a 1
in 5 chance of a recession in
the next 12 months. Those odds
have declined slightly over the
past three months, but are up
from 14% a year ago.
CEO COUNCIL
U.S. ANNUAL MEETING
NOV. 1415 | WASHINGTON, D.C.
Just days after this years historic election, WSJ editors will discuss the
impact of a Trump administration with policy makers and the worlds
most ambitious business leaders on stage at the U.S. annual meeting.
CEO CO UNCIL ME MB E RS HIP IS BY INV ITAT IO N O NLY.

LE ARN MO RE AT C EOCOUNC IL.WSJ.COM
P R O U D LY S U P P O R T E D B Y :
2016 Dow Jones & Co., Inc. All rights reserved. 6DJ4552
were convicted by a jury, while

others pleaded guilty and testified against their friends at
trial in hopes of a more lenient sentence.
For the defendants convicted of conspiring to commit
murder in Syria on behalf of
Islamic State, the government
has asked for up to 30 or 40
years in prison. Others face
less than five years.
Dr. Koehler said he spent
approximately 200 hours preparing individual assessments
for the judge, which include
whether the defendant would
be a good fit for a deradicalization program.
U.S. WATCH
WASHINGTON
Clinton Email Probe

Not GOP Priority
A senior congressional Republican says the partys agenda in
the coming Congress doesnt include further investigations of
Hillary Clinton. Speaking Sunday
on Fox News, House Majority
Leader Kevin McCarthy said the
GOP will focus on job creation,
reforming and repealing President Barack Obamas health care
law, and rebuildings Americas
roads and bridges.
Associated Press
NEW JERSEY
The Boss Gets Help

From Bikers on Road
A group from the Freehold
American Legion in New Jersey
was riding their motorcycles after a Veterans Day event on Friday when Dan Barkalow says he
saw Bruce Springsteen on a broken-down motorcycle on the side
of the road. After they couldnt
get his bike running, Mr. Springsteen hopped on the back of
Ryan Baileys bike and they
headed to a local bar. We sat
there and shot the breeze for a
half hour, 45 minutes till his ride
showed up, Mr. Barkalow said.
Associated Press
IN DEPTH
FAMILY
mementos, lawn ornaments,
curio cabinets and faded family heirlooms that are now
causing friction and subterfuge in families. And baby
boomers who are paring down
are also fending off their own
parents stuff.
Theyll give it a back
storyIt was Poppys and he
had it in his house for however long, said Cathy. For
the most part well say yes
and well just be really angry
about it on the inside, she
said of herself and her husband.
When 33-year-old Joe
Ewaskiw, who works in public
relations and lives in Hermosa
Beach, Calif., visits his parents
near San Diego these days,
mom has a whole set of
things laid out. Its like a little
garage sale just for me, he
said.
Barbara van Vierssen Trip,
who is 29 and works with a
nonprofit in Fort McMurray,
Canada, said she is the involuntarily recipient of her
JEFF LAUTENBERGER FOR THE WALL STREET JOURNAL (2)

turing, shrinking populations,
a fraying of social cohesion
and a rise in immigration, all
of which made them ripe for
Mr. Trumps message of national restoration.
His victory Tuesday, which
stunned so many, encapsulated a shift that has been under way in this corner of
Northeastern Pennsylvania
for at least two decades. As
in many pockets of the country, the promises made by
policy makers in the late
1990sthat advances in technology and global trade
would benefit allfell short
of reality. And the worsening
economy deepened the sense
that communities around the
country were in a state of decline.
Surrounding Luzerne is a
wide swath of counties whose
votes for Mr. Trump increased vastly from GOP nominee Mitt Romney in 2012.
Mr. Obama took Luzerne by
five points in 2012, while Mr.
Trump took it by a resounding 20 points. Neighboring
Lackawanna, Wyoming, Sullivan, Columbia, Schuylkill and
Carbon counties all notched
Republican gains of similar
magnitude, although of those,
only Lackawanna went for Mr.
Obama in 2012, when he carried Pennsylvania.
Nationally, both Mr. Trump
and Hillary Clinton fell below
the vote tallies Mr. Obama
and his GOP rival, Mr. Romney, racked up in 2012.
Around Luzerne, that dynamic was different. In the
three counties that make up
the Wilkes-Barre/Scranton
metropolitan area, Mr. Trump
topped the Romney vote
count by 31,000, while Mrs.
Clinton garnered 27,000 fewer
votes than Mr. Obama.
Luzerne County, a short
drive from Vice President Joe
Bidens childhood hometown
of Scranton, hadnt gone Republican since George H.W.
Bush took it in 1988. Thats a
legacy, political analysts say,
of the influence of unions
and lingering memories of
New Deal programs that bettered the lives of the
countys largely Irish, German, Polish and Eastern European stock.
The county, however, has
suffered one economic gut
punch after another since the
1970s, steadily weakening the
partys hold.
Foreign competition largely
wiped out the areas dress and
shoe industries. Many in the
county bitterly remember pencil maker Eberhard Faber
moving a plant to Mexico in
the mid-1980s and other manufacturers closing factories.
A plan in the mid-2000s to
capitalize on computer-network technology and turn the
county into Wall Street West
proved a bust after few financial firms moved back-office
processing to the area.
The Greater Wilkes-Barre
Chamber of Commerce is
hatching a new plan to attract businesses by involving
the local colleges in recruitment efforts, but the program is too new to have
much effect so far.
The unemployment rate in
Luzerne
County,
now
6.2%, has generally exceeded
the national average since
2000, and manufacturing em-
mothers coffee-mug collection

and knickknacks that her
grandmother swears up and
down are antiques but that
were clearly made in the late
1980s.
Im stuck with all these
things I call treasures and everybody else calls junk, says
Pembroke, Mass., retiree Hugh
Crossen, 81, summing up todays dilemma. He pesters his
55-year-old daughter Elaine
Morisi and her husband into
taking stuff. Every time we
go there, said Ms. Morisi, a
teacher who lives in Medfield,
Mass.
She says her parents treasures have included avocado
green and burnt orange decorations of another era. Her father gave her a particular hard
sell one day over some wall
sconces. Real nice, pretty
ones, Mr. Crossen said.
We werent going to get
out of that house without taking those sconces, said Ms.
Morisi. She relented but eventually set the sconces free at
the swap booth of her town
dump.
We had two complete sets
of good china that none of our
kids wanted, says Jim Mad-
achy, a retired English professor in Ellicott City, Md. He and

his wife, Phyllis, downsized to
a smaller home more than a
year ago. I dont know if
china has the same sort of cachet it used to, said their son,
Paul Madachy, 44, who took a
pass, as did his sisters.
Phyllis Madachy commiserated with friend Bob Sheff, of
Columbia, Md. Bob and his
wife, Arlene, have been paring
down over the last couple of
years because they want to
age in place in an uncluttered

environment.
Its time to take ownership
of this stuff, Mr. Sheff, 73 and
a semiretired radiologist, said
he told their grown children.
The response was, we
dont want that, he said.
Their daughter Kim Flyr,
who is 49, said it is true that
she has turned down the decorative dessert cups that were
in the family for generations.
Its a miracle if I make dinner, much less dessert, said
SYLVIA HOROWITZ
RACE
something?
Nineteen-year-old Jasmine
Castillo, who makes tacos at
Luzerne, the Pennsylvania county that ipped most dramatically for Donald Trump on Tuesday, helped to deliver the stateand the
the familys food truck in Wilpresidencyto the Republicans. Surrounding Luzerne is a swath of counties whose votes for the GOP nominee increased vastly from 2012.
kes-Barres downtown, says
her familys life has become
Change in margin of
worse as Mr. Trumps popuErie
victory by percentage
Wilkes-Barre/
larity soared. People now tell
points, 2012-16
Scranton metro area
her to speak English when
she speaks Spanish, and to go
Counties Trump won:
P E N N S Y LV A N I A
back across the border,
(No decline in margin from 12)
though she is an American
WYOMING
CO.
LACKAWANNA CO. citizen. Someone left feces
0
+10 pts.
+20
+30
outside her fathers kitchenLUZERNE CO.
cabinet business, she says.
Counties Clinton won:
People feel empowered
-20
0
+10
now to make insults and
Population:
threats against Hispanics, she
State College
Each dot ( )=
says. Its terrifying.
500 people
Allentown
Voted for Obama
For Mr. Trumps supportin 2012, Trump in 2016
ers, expectations are so high
Pittsburgh
it reminds them of what they
Harrisburg
once felt for President
Obama.
Philadelphia
Martha Wallace, whose
family owns a small manufacturer of crucifixes and other
Catholic
jewelry,
says,
Trump drummed up the enCompared with the U.S. as a whole, the Wilkes-Barre/Scranton metro area is ...
thusiasm, just like Obama
Less employed
More tied to manufacturing
Less wealthy
More impoverished
drummed up the enthusiasm
last time. Her 7-year-old son
Unemployment rate
Payroll sector employment
Median household income
Poverty rate
has declared himself a
12-month moving average
As a percentage of total non-farm
Adjusted to 2015 levels
Percent in poverty in past 12 months
Trump man. Her 16-year-old
$60,000
18%
80%
10%
daughter
also
supports
Wilkes-BarrePrivate services
Trump.
Ive
encouraged
her
Scranton metro
8
55,000
16
60
to dream big, Ms. Wallace
says.
6
Ms. Wallace says she is
50,000
14
40
worried about the future of
U.S.
4
the U.S. economy and the
Manufacturing
threat of terrorism, and is
45,000
12
20
2
counting on a Trump presidency to ease her fears about
40,000
10
0
0
both. We hope some of
1991
00
10
1990
00
10
2005
10
15 2005
10
15 Trumps economic policy will
make it easier for us compete
How counties in the Wilkes-Barre/Scranton metro area have voted in presidential races
Democratic
Republican
and still stay true to always
Lackawanna Co.
Carter
Reagan
Dukakis
Clinton
Clinton
Gore
Kerry
Obama
Obama
Clinton
being a Made in the USA
Reagan
Reagan
Bush
Clinton
Clinton
Gore
Kerry
Obama
Obama
Trump
Luzerne Co.
company, she says.
Reagan
Reagan
Bush
Bush
Dole
Bush
Bush
McCain
Romney
Trump
Wyoming Co.
On the campus of Kings
1980
1984
1988
1992
1996
2000
2004
2008
2012
2016
College, a small liberal-arts
Sources: Bureau of Labor Statistics (employment); U.S. Census Bureau (income, poverty); Associated Press (vote margins)
THE WALL STREET JOURNAL. college in Wilkes-Barre that
was set up to educate the
children of coal miners, students debated on Thursday the impact of a Trump
presidency. Skyler Makuch,
19, said she was worried her
rights as a gay American
would be impinged by a conservative Supreme Court. I
already know a Trump presidency is not going to be good
for me, she said.
Twenty-year-old Tanner
Hale, who cast his first vote
for Mr. Trump, said opponents should remember he
will need to turn to old Washington hands to run the govLeft, people crossing Market Street near the Public Square in Wilkes-Barre, Pa. Tanner Hale, right, a Trump supporter and a student,
ernment, making it less likely
believes Mr. Trump will improve security at home and abroad. I expect him to deliver on that, and to protect the Second Amendment. he would take extreme measures. Hes surrounding himployment in the county is Lutheran churches in Wilkes- with its working-class voters. by shifting two paid workers self with good people, Mr.
down by around one-third Barre in 2000, says Rev. Peter They had long been sympa- to Hazleton, a city that Hale said. And hes not going
since 2000. Many of the jobs Kuritz of Good Shepherd Lu- thetic to conservative argu- gained national prominence to be the one making all the
that remain are low-wage ser- theran Church, one closed ments on issues such as gun by passing an ordinance pe- calls.
vice ones in local hospitals, and two other dont have full- control and abortion, while nalizing landlords for renting
He believes Mr. Trump will
colleges, chain restaurants time pastors.
skeptical of the GOPs per- to illegal immigrants, which improve security at home and
and stores. Median income,
Meanwhile, the countys ceived catering to the was later blocked by the abroad. I expect him to deafter accounting for inflation, Hispanic population has wealthy. Mr. Trumps brand of courts. Immigration is a big liver on that, and to protect
has been flat in Luzerne climbed nearly 10-fold since populism bridged that divide. issue there, says Luzerne the Second Amendment, Mr.
County since 2000.
2000, to 31,000, adding a
Tom Calpin, business man- County Chairman Ron Fer- Hale said. Hunting is what I
Young people are leaving
rance. There are so many do for fun.
the region in search of jobs
passionate people who were
Mr. Ferrance, the Republielsewhere, leaving an older,
ready to make phone calls can county chairman, says he
more conservative group of Pennsylvanias Luzerne county has
and canvass for Mr. Trump, realizes voters expect Mr.
voters. In Luzerne, the popuwho takes a hard line on im- Trump to deliver. If its the
suffered
one
economic
gut
punch
after
lation has remained steady
migration, he says.
status quo, people will be upsince
2000,
at
about another, weakening the partys hold.
Bill OBoyle, a veteran re- set, he says. People want
320,000, but the number of
porter and columnist for Wil- him to govern in the spirit of
people age 25 to 44 fell by
kes-Barres Times Leader, what he said during the
about 10,000, according to
says he figured Mr. Trump campaign.
Moodys Analytics.
layer of ethnic tension to a ager of Iron Workers local was a lock to win Luzerne
He figures there is some
The weak economy has, place where 84% of the popu- 489, says when he distributed County when he compared wiggle room in some of Mr.
over the decades, contributed lation is non-Hispanic white. a letter to members opposing the turnout at political ral- Trumps more controversial
to a tattering of the countys
Theres a sense that the Mr. Trump, some responded lies. The area has long been a stances, such as his repeated
social fabric. Church atten- new residents dont look like by telling him not to pry stopover for presidential claim that the U.S. would
dance is down since 2000, us or sound like us, says Rev. into who people vote for. He campaigns.
build a wall across the U.S.opioid addiction is up, and Kuritz. People feel its not says that is the first presiYou had Hillary Clinton, Mexican border and make
civic organizations like the like it used to be.
dential election he can recall 500 people. Teddy Cruz, 300 Mexico pay for it. Maybe, he
Rotary Club and the Masons
The region had been drift- where politicking prompted a people. Bernie Sanders, 1,500 says, Mr. Trump could argue
have trouble recruiting young ing from its New Deal Demo- backlash.
people. And then Donald that job growth caused by
members, say local resi- cratic roots for years, and Mr.
County GOP leaders say Trump, 11,000. How could tougher trade policy would be
dents. Of the four Evangelical Trump took full advantage they looked to boost turnout those crowds not mean a way of having Mexico pay.
The Flipping of Pennsylvania
Sylvia Horowitz has been trying to pass along these porcelain

birds to her daughter but isnt having any luck.
www.ebook3000.com
Ms. Flyr, a mental-health therapist and yoga teacher who

lives in Sykesville, Md.
Trying to move on, Arlene
Sheff, who is a psychotherapist, gave the decorative dessert cups to a nearby friend,
Sylvia Horowitz, but then felt
guilty about letting them out
of the family and took them
backonly to change her mind
again and send them back to
Ms. Horowitz.
Ms. Horowitz, who is 77,
understands the dynamic all
too well because she has been
trying unsuccessfully to get
her own daughter to take two
porcelain birds that she says
are family heirlooms.
The birds are just going a
little far for me. I just couldnt
go there, said her daughter
Joanne Beren, who is 52 and
lives in St. Louis.
Ms. Beren did agree to accept wall decorations that had
belonged to her grandmother
but says they have been sitting in my dining room for a
year now in a paper bag and
now they have cobwebs on
them.
And she also agreed to take
ownership of a chandelier, but
said she caused a stir when
she tried to funk up that

brass family vestige with a can
of high-gloss white spray
paint.
I nearly died, said Ms.
Horowitz. Oh my God. You
cannot spray-paint that old
antique chandelier.
Before her in-laws began
dropping things off at her
home this year in Minneapolis,
Ms. Schroeckenstein, who is
the editor in chief of Weddingbee, an online site for nuptials
planning, had a similar influx
of treasures from her own parents two years ago.
They downsized from a
home in California and gave
her their Buddha statue, a
whole buffet of nice outdated
dishes and a 50-pound stone
slab electric wall fountain that
resembles something you
would see in a bank or a nicer
dentist office, Ms. Schroeckenstein said.
Her 70-year-old father, Ernest Geefay, retired from the
video-production industry, recently visited his daughter in
Minneapolis and didnt see the
wall fountain.
They still havent put it
up, he said. I dont know if
theyll ever put it up.
LIFE&ARTS
PLAYLIST
Carlo Rovelli
The Physics
of a Breakup
A spare, three-minute
piano piece composed
by Arvo Prt consoles a
distraught scientist
GETTY IMAGES
My life was complicated in

1996. I had just broken up with
my wife, and things were dark,
foggy and messy. One day, as I
lay on the sofa in my living
room in Pittsburgh writing a
physics paper, an unfamiliar
classical piece came on the radio that forced me to put down
my pad. It was as if the universe had stopped.
I grew up in Italy and always wanted to be a scientist.
But it wasnt easy finding a
teaching opportunity. When the
University of Pittsburgh offered
me a position in 1990, I took it.
Several years later, I became an
American citizen.
I met my future wife on a trip
back to Italy. We wed, and she
returned with me to the States.
But the relationship didnt work
out. Every separation is confusing, and I felt horrible.
During this emotional haze, I
was living alone and engaged in
my work. That day on the sofa, I
was deeply focused on what I
was writing, and yet a song penetrated my concentration.
The piece, I found out after,
was David Ardens recording of
FR ALINA, a 1976 work for
piano by Arvo Prt, an Estonian
composer. I had never heard it
before. Fr Alina opens with
the pianist moving tentatively
along the keys, in an almost
childlike way. Most fascinating
are the pauses between measures. At first, I thought something was wrong with my radio.
It was the piece, ruminating
and catching its breath.
The song only runs about
three minutes. It never explodes
in crescendo but instead flowers with introspection. Theres
something about its spareness
thats completely pure. Hearing
the song that day, it was as if
the light in the room had
changed, leaving the space serene and magical, like a pearl.
Today, I never listen to the
song while driving or working.
I listen undistracted and savor
it. Fr Alina doesnt help me
write an equation or solve a
problem. It connects me to my
emotions and allows me to put
life in perspective. At its core,
physics is finding the simplicity
behind the mess and complication. Fr Alina does the same.
Composer Arvo Prt in 1984.
FROM TOP: CHRISTIES IMAGES LTD; SOTHEBYS
Carlo Rovelli, 60, is

an Italian theoretical physicist at AixMarseille University
in France and the
author of Seven Brief Lessons
on Physics (Riverhead). He
spoke with Marc Myers.
Gerhard Richters Abstract Painting (809-2), now owned by Eric Clapton, is expected to fetch at least $18 million at Christies.
THE ART MARKET
Collectors Stay Cautious
For this weeks New York sales, auction houses temper their expectationsbut also dangle potential
blockbusters such as a $45 million Monet and a $50 million Munch
BY KELLY CROW
If the art market could be
summed up in a painting, it would
be a still life. After several years of
surging growth, auction sales
slowed last year as wary collectors
held onto more of their trophies
rather than risk putting them up
for bid.
Sales continue to shrink, with
this weeks New York auctions offering one of the smallest batches
of works in recent seasons. Between now and Friday, Sothebys,
Christies and Phillips are expected
to sell around $1 billion in art,
down 57% from $2.3 billion at a
similar series of sales last November. Only Phillips, a boutique house,
projects it will sell more art this
week than last fall.
Necessity has compelled the
houses to get inventive with marketing to buyers spooked by global
economic uncertainty and sluggish
sales for newer art. In its Manhattan headquarters, Sothebys recreated the New York and Palm Beach,
Fla., homes of Ann Ames,

who asked the house to
sell the roughly $100 million collection she amassed
with her husband, former
Oppenheimer & Co. partner Steven Ames, before
his death in March.
For its website, Sothebys created an animated cartoon with specialist Simon Shaw
discussing Lszl MoholyNagys 1923 EM1 (Telephone Picture), which is
estimated to sell Monday
night for at least $3 million.
Phillips consigned a
Roy Lichtenstein painting,
Nudes in Mirror, that a vandal
slashed several times a decade ago.
The auction house produced a separate catalog to document the paintings repairwith an acupuncture
needleand discuss other damaged
works. Now in one piece, the painting looks like a million dollars,
said specialist Jean-Paul Engelen.
But will collectors think the Lich-
At Sothebys, Edvard Munchs

Girls on the Bridge will have a
low estimate of $50 million.
tenstein looks like $20 million, its

low estimate?
Experts from all three houses
agree that this fall, the sweet spot
for collectors, in terms of pricing,
hovers between $700,000 and $5
million. That may benefit designer
Tommy Hilfiger, who is selling five
works at Phillips on Wednesday
with a combined low estimate of
$5.5 million.
Other sellers include rocker
Eric Clapton, who enlisted
Christies to sell his Gerhard
Richter, Abstract Painting
(809-2), for at least $18 million. Publishing executive Peter
Brant has asked the same
house to sell his John Currin
painting of a pair of nude
women, Nice n Easy, for at
least $12 million, up from the
$5.4 million he paid for it eight
years earlier.
Tighter supply has spurred
the houses to showcase artists
who seldom or never have been in
a marquee New York evening sale
before, like Frantiek Kupka, a
Czech modernist whose 1924 The
Form of Blue is estimated to sell
for at least $1.5 million at Sothebys
Monday.
Five pieces facing important tests
at the New York auctions: .............. A9
FAMILY
GOBBLE, GOBBLE, GOBBLE, THREE TIMES A THANKSGIVING TURKEY
KAGAN MCLEOD
BY ANNE MARIE CHAKER

Thanksgiving grilled cheese with cranberry compote for the classroom? Or what
about pumpkin ravioli with sage brown butter for the office potluck?
Supermarkets and food-delivery services
are betting people have multiple, smaller
Thanksgivings in addition to the main event
next week. And they want to help extend the
holiday eating, and their sales.
People in the U.S. are enjoying more
Thanksgiving meals. Divorce and distance
may mean some families have multiple
meals. There is the increasing popularity of
Friendsgiving, a gathering of friends and
colleagues in the week or two leading up to
the big family meal; the classroom celebration, when children dress up as pilgrims
and bring a dish from home; and the office
potluck.
In the current issue of its catalog, gour-
met food retailer Dean & Deluca is pitching

turkey alternatives such as 24 oysters for
$129, a $109 venison rack and a $60 semiboneless quail that serves three people. A
roasted rack of venison, for instance, could
be a nice alternative for Thanksgiving at the
in-laws, says Michele Dowling Johnson, senior vice president for sales and marketing
at Dean & Deluca.
I couldnt personally bear to see another
turkey in an all-clad roasting pan, says Michael Scabilia, Dean & Delucas chief merchant.
Hannah Streeb, a 36-year-old elementary
school teacher in Arvada, Colo., says her
family celebrates about five total Thanksgivings. For us, its more of a Thanksgiving
month, she says. She and her husband Tim,
managing director for a brand consulting
company, hosted 20 adults and 20 children
at their home earlier this month for a potluck meal that included two turkeys and a
Please see TURKEY page A12
LIFE & ARTS

MUSIC REVIEW | Jim Fusilli
The timing of A Tribe Called

Quests reunion for its final album,
We Got It From HereThank You
4 Your Service (Epic), released on
Friday, makes sense. Tribes marriage of hip-hop and jazz, as best
illustrated by its second album,
The Low End Theory (1991),
which featured Ron Carter on bass
and samples of classic jazz masters,
is a major influence on contemporary music as exemplified by Common, Flying Lotus, Kendrick Lamar,
the Roots, Snoop Dogg, Jill Scott,
Kamasi Washington and others. For
hip-hop fans, the return of A Tribe
Called QuestKamaal Ibn John Fareed, known professionally as QTip; Ali Shaheed Muhammad; Malik
Taylor aka Phife Dawg; and Jarobi
Whiteand the arrival of We Got
It From HereThank You 4 Your
Service are cause for celebration.
But the celebration is bittersweet. Phife Dawg died suddenly
in March while the album was being recorded. Thus, as it was with
David Bowies Blackstar and
Leonard Cohens You Want It
Darker, We Got It From Here
takes on a new meaning in the
face of death. Fans who savor the
new album will remember not only
what was and appreciate whats
new, but will also experience the
last of its kind: Q-Tip has said this
will be the groups last album.
Though it toured on occasion in
the intervening years, there was little guarantee that Tribe would record again after its breakup in 1998.
The new album finds Tribe re-entering in stride: Delivered with
savvy patiencethough not without
biteswing and polyrhythmic funk
are at its heart. On The Space Program, the opening track, Mr. White
and Q-Tip trade off spitfire lyrics
that contrast the mellow, quavering
keys beneath them, and Phife Dawg
enters over guitar chords as the
crisp rhythm melts away. Conrad
Tokyo rises from a jazz-funk underpinning that zigs and zags. A
snaking funk bass is the engine of

Whateva Will Be, and Black
Spasmodic bounces along on a
reggae beat.
As befits a project that reunites
one of Americas most influential
groups, We Got It From Here features guest musicians from across
the rock-and-pop spectrum. Mr. Lamar provides an explosive verse in
Conrad Tokyo, Andr 3000 of
Outkast dominates the narrative in
Kids and Anderson Paaks melodic singing lifts Movin Backwards. Elton John sings in Solid
Wall of Sound, which also features
Busta Rhymes. Jack White appears
on several tracks, most notably providing the tasty guitar bits in the
swaying Melatonin. Talib Kweli
and Kanye West join in on The
Killing Season, which also features
Dexter Mills Jr., aka Consequence,
who appears on several tracks.
But the skills of the Tribe members give the album its vitality. In
Enough!!, the contrasting rapping styles of Q-Tip and Mr. White
create tension in a sly soul setting.
Phife Dawg is never far from the
survivors thoughts. In Lost
Somebody, a touching tribute, a
sweet chorus acknowledges that
he is gone: No more crying, hes
in sunshine, hes all right now, see
his wings. Movin Backwards
gives the group members a chance
FROM TOP: JARED SISKIN/PMC/GETTY IMAGES; BRIAN ACH/INVISION/ASSOCIATED PRESS (3)
A Tribe Called Quest

Bids Farewell
A Tribe Called Quest released its highly anticipated final album on Friday.
Phife Dawg, above, died in March. The groups other members: Q-Tip, top, Ali
Shaheed Muhammad, left, and Jarobi White, above left.
to comment on their own journey

to the reunion; Q-Tip raps: Moving backwards never, that was
never the plan / Can I vent? I was
content being my own man. But
reuniting Tribe, he realized, would
give him a more prominent platform to air his social commentary.
Who could be blind to racism?
he asks in the song.
At times, We Got It From
Here is pointedly political. In We
the People, over a fat synth riff,

Q-Tip raps in the voice of the oppressors: All you black folks, you
must go / All you Mexicans, you
must go... / Muslims and gays, boy,
we hate your ways. He and Phife
Dawg seem to predict the reaction
to the conduct of the press during
the recent presidential campaign:
The fog in the smog of new media
that logs false narratives of guys
that came up against the odds.
Reunions of beloved, long-gone
groups have a way of falling short
of the hype, but that isnt the case
at all with We Got It From

HereThank You 4 Your Service.
Perhaps because it is so fundamental to some of todays best music,
A Tribe Called Quests sound is as
fresh as it was the first time
around. Thus, with this album the
group found a way to return and
also say goodbye with the authority that gave it its exalted status.
Mr. Fusilli is the Journals rock
and pop music critic. Email him at
jfusilli@wsj.com and follow him on
Twitter @wsjrock.
FIVE WORKS TO WATCH

CLAUDE MONET
EDVARD MUNCH
Prices for this Impressionist

masters Water Lily paintings have soared above
$80 million lately. Christies
expert Brooke Lampley
thinks its time to test levels for his Grainstack series, a group of 25 scenes
of fields and haystacks that
Monet painted in 1890-91.
Only six remain outside
museum collections. The record for a Grainstack is
$14 million, set in 2002. On
Wednesday, Christies will
ask $45 million for this
pink-and-purple version.
In May 2008, collector Larissa

Chertok paid Sothebys $30.8
million for the 1902 scene,
Girls on the Bridge. She
hopes to sell it at Sothebys
for $50 million, a 62% price
bump. Ms. Chertok is likely to
hit her target price since the
house extended her a guarantee, but could this cheery
scene soar to Scream levels?
Munchs most famous work
fetched nearly $120 millionat
Sothebys in 2012.
GERHARD RICHTER
This German painters market

remains volatile, with some collectors clamoring for his rainbow-hued squeegee abstracts
from the 1980s, at least below
$30 million, the houses said.
This season, Microsoft cofounder Paul Allen will test demand for Richters figurative
work by asking $25 million for
the artists 1963 Dsenjger
(which means jetfighter) at
Phillips on Wednesday.
FROM TOP: CHRISTIES IMAGES LTD (2); SOTHEBYS
WILLEM
DE KOONING
Among the 10 works

by this abstract
painter up for sale
this week, Untitled
XXV is the biggest
one to watch. Former
Georgian Prime Minister Bidzina Ivanishvili paid Christies
$27.1 million for this
1977 painting a decade ago, and later
resold it privately for
more. On Tuesday,
Christies will offer it
up once again, this
time for $40 million,
a record estimate for
the artist.
www.ebook3000.com
NJIDEKA AKUNYILI CROSBY
This Nigerian-born, Los Angeles-based painter makes her evening-sale debut

at Sothebys on Thursday, a milestone that could affect her price levels. Ms.
Crosby is known for painting tightly compressed scenes of family and friends
doing everyday things like watching television. Sothebys has an estimate of
$200,000 or more on 2012s Drown, an intimate double portrait of the artist embracing her husband.
OPINION
REVIEW & OUTLOOK
Pacific Trade Bust
hite House officials finally gave up

The strategic damage is far more consideron the Pacific free-trade deal on Fri- able. The TPP would have been a geopolitical
day, after weeks of insisting they counterweight to Chinas growing influence in
had the votes to pass it. This
the Asia-Pacific, and it would
The first casualty
failure was inevitable given
have strengthened U.S. rethe left-right protectionism of
gional relationships. Now
of Americas new
the 2016 campaign, but lets
China will strike its own trade
anti-trade politics.
hope its not the first thunder
deals one by one or across the
crash of a new era of trade
region. Authoritarian governwar that a shaky world econments are bidding to displace
omy can ill afford.
America as dominant powers in their regions,
Both Donald Trump and Hillary Clinton ran and Mr. Trump will be tested by this alarming
against the 12-nation Trans-Pacific Partner- trend.
ship, or TPP, and at least the President-elects
The disintegration of TPP is a particular
opposition was sincere. The TPP has always misfortune for Japanese Prime Minister Shinzo
lacked a majority in the House and maybe even Abe, who gambled on America and made TPP
the Senate, and votes werent lost merely be- central to his economic reform agenda of
cause both candidates fanned sentiment breaking up domestic cartels and prying open
against globalism. The details included too industries like farming and retailing. Mr. Abe
many non-trade provisions like labor and envi- will have to find another opening to make
ronmental rules that inspired defections by Japan great again.
free traders.
Mr. Trump promised to undo the rape of our
President Obamas TPP contingency plan was country that he called TPP even if Congress had
for Mrs. Clinton to win the election and then for decided to pass it, and the political reality is that
Congress to pass it in the lame-duck session. So he won the election. But the President-elect will
Mrs. Clinton, who helped negotiate the accord have to resolve the tension between his proas Secretary of State, was given a pass to benefit growth proposals, like tax reform and deregulapolitically from renouncing her own handiwork tion, and his protectionist impulses.
and moving left on trade, while Republicans
Perhaps hell be satisfied with measures like
would then do her and Mr. Obama a favor by jam- imposing tariffs in anti-dumping cases or small
ming TPP through Congress before she took of- changes to current trade deals. But over the defice and had to spend political capital to pass it. cades Congress has given the President more
This is the crack political thinking that helps unilateral power to impose punitive tariffs that
explain why TPP is dead. The President is the could lead to retaliation, and Mr. Trump often
only actor whose leadership can lower the politi- campaigned as if he intends to blow up Amercal temperature when populism runs hot. Yet Mr. icas 100-year-old role as the anchor of the interObama sat on the sidelines as critics on the right national trading system.
and left piled on against the deal. Negotiating
Mr. Trump says hes a free trader but that
for years and then rushing TPP to land in an recent deals have hurt American workers and
election year was also politically reckless.
companies. He could prove hes open to trade
The immediate economic costs to the U.S. by starting bilateral trade negotiations with
are minimal, because U.S. tariffs are already Japan, or perhaps with Great Britain as it prelow on most products. Instead, the U.S. is giv- pares to leave the European Union.
ing up the best opportunity in decades to liberGlobal equities first sold off on Mr. Trumps
alize countries where barriers to trade and in- election this week, then rallied on expectations
vestment are high, like Vietnam and Malaysia. that implementing pro-growth policies would
American exports would have gained in these be his priority in 2017. But the Pacific trade
markets, and over the long-term TPP would failure is a reminder that hes also the first auhave improved U.S. competitiveness and added thentic protectionist to win the White House
to growth when trade volumes are already his- since the 1920s, and that carries big economic
torically weak.
risks.
Trumps Secret
Weapon: Obama
Trump and the Democrats
onald Trumps victory is already in- to polarize voters for his own purposes.
spiring reflection about the future of
In his second term, Mr. Obama adopted his
the Republican Party, and rightly so, pen and phone strategy of executive rule to bybut Democrats dont seem to
pass Congress and avoid acThe lesson: Progressive countability. He unleashed the
be undertaking any similar introspection. This is a mistake,
EPA to impose carbon cap and
government cant be
because they wouldnt have
trade without basis in law. The
imposed from the top. Education Department rewrote
been ushered out of power up
and down the ballot if the
Title IX to erode due process on
American public wasnt recampus. The Paris climate deal
jecting the results and methods of the last eight and Iran nuclear accord should have been submityears.
ted to the Senate as treaties for ratification.
Liberals are attributing Hillary Clintons loss
Some of these gambits have been checked by
to FBI Director Jim Comey, while the more hon- the courts, and the left will learn that whats
est admit her email scandal and Clinton Founda- done through regulation can be undone through
tion ethics were problems. Others note she was new regulation. But liberals have also normala less than inspiring campaigner. The lefts all- ized such abuses, to borrow a now-popular
purpose answer seems to be that the same phrase among progressives. Supposedly when
American people who elected President Obama Congress refuses to pass bills that the President
twice have defaulted to their traditional sexism, desires, he has the power to achieve his aims by
racism and xenophobia.
himself. That isnt how U.S. democracy works,
Blaming white-lash is sillyof the roughly and it inevitably created its political counter-re700 U.S. counties that Mr. Obama won twice, action in the form of Mr. Trump.
i
i
i
about one-third broke this time for Mr. Trump
Democrats now face some decisions about
but these cultural rationalizations are lamentable and instructive. Too many liberals, and some how to deal with a Republican majority, and one
conservatives, simply cannot imagine how great irony is that their methods under Mr. Obama will
numbers of Americans think and perceive their make Mr. Trumps job easier. The Harry Reidown interests. Thus wrong opinions must be the Obama decision to break the filibuster for nomiresult of cognitive limitations or character nations will ease the path for Mr. Trumps cabiflaws. Mrs. Clinton called Trump supporters net and judicial nominees. A GOP Senate wont
deplorables, irredeemable and not Amer- tolerate a filibuster of a Supreme Court pick.
The Elizabeth Warren left will want the party
ica, as if there could be no other explanation.
These failures of empathy are also a staple to reject any bipartisan accommodation, hoping
of Mr. Obamas rhetoric, with his moral lectures to mobilize their base to sweep out the GOP Conabout who we are as Americans and the arc of gress in 2018. But Democrats will be defending
history always bending towardwell, his point 25 Senate seats, several in states that went deof view. For the President, and most prominent cidedly for Mr. Trump. A rejectionist strategy
Democrats these days, opponents who debate carries political risks, not least in the states
policies and principles never do so in good faith. where the Obama top-down strategy has left
For eight long years Mr. Obamas belief that Democrats in their weakest position in 90 years.
One result of Mr. Obamas tenure is that Demhe holds the mandate of heaven has guided how
he has used and abused presidential power. He ocrats lack a deep bench of younger candidates
was elected in 2008 on a message of hope and for federal office, including the Presidency in
centrist unity, but he was soon ramming through 2020. A third of all House Democrats will now
40 years of pent-up progressive priorities. Recall come from a mere three statesCalifornia, New
his famous 2009 brush-off of Republican Eric York and Massachusetts. Even as talented a canCantor, who had proposed some bipartisan ideas didate as Jason Kander, a military veteran who
ran strongly against Senator Roy Blunt in Misfor the stimulus: Eric, I won.
Democrats imposed ObamaCare on a straight souri, couldnt win against the Trump tide.
The lesson for smart Democrats is that propartisan majority, though the polls showed there
was no political consensus about a new entitle- gressive policy goals cant be imposed on a rement among the oft-invoked, rarely consulted luctant America by political diktat. They have
American people. National health care is no to be won by persuasion and inevitably by commore popular today and is now misfiring in all promise. Relying on judges and regulation left
the ways the critics predicted. The GOP was fro- millions of Americans feeling disenfranchised
zen out of all major economic decisions in and inspired the Trump backlash. This wasnt
2009-10, and one price was the weak recovery about race or gender or Hillary Clintons emails.
It was about reclaiming a voice in how their
that persists to this day.
Democrats did have a historic supermajority, country is governed.
The same political lesson applies to Mr.
but that wasnt a mandate to do whatever they
could get away with, and they lost a record 63 Trump and Republicans as they seek to pass the
House seats in the midterms as punishment. Mr. agenda they campaigned on. But they now have
Obama then feinted toward a grand bargain with that opportunity in large part because the
John Boehner, only to ambush the then Speaker Obama progressives were so uncompromising
with politically impossible tax-increase de- and condescending to Americans beyond the
coasts. The tides of American politics mean
mands at the 11th hour.
The President won re-election in 2012 by con- Democrats will inevitably make a comeback, but
verting a decent man like Mitt Romney into a that return will arrive stronger and maybe
monster who would prosecute a war on sooner if they learn the lessons of Mr. Obamas
women. He also weaponized identity politics disdain for his political opponents.
President-elect Donald
Trump paid a visit to
the
White
House
Thursday, and by all
accounts he was pleasant toward the current
POTOMAC occupant. He should
be, since Mr. Trump
WATCH
owes his victory to BaBy Kimberley
rack Obama.
A. Strassel
Hillary Clintons defeat has left the Democratic Party a smoldering heap, its
leaders pointing fingers over who or
what to blame: James Comey. Robby
Mook. Voter suppression. WikiLeaks.
Sexism. Barely a mention has been
made of the man who presided over
one of the most epic party meltdowns
in the countrys history: Mr. Obama.
Deep Democratic fissures have been
on display for years, with Mrs. Clintons rancorous primary against Bernie
Sanders only the most recent example.
But the media chose to ignore this and
instead to obsess about largely superficial GOP divisions. All along this election has been portrayed as a referendum on Mr. Trump. Tuesdays results
are far better viewed as a thundering
repudiation, at every level, of Mr.
Obamas governing and policies.
In 2009, the presidents first year in
office, the Democrats held 257 House
seats, a majority that was geographically and politically diverse. After
Tuesday the figure stands at 193, and
fully one-third of these Democrats hail
from three blue states: New York, California and Massachusetts.
The story is equally grim for Democrats in the Senate. In 2009 they held
the first filibuster-proof majority since
the 1970s, which evaporated in the
wake of ObamaCare. Tuesdays vote
was the best chance Democrats will
have in years to retake the chamber,
but they lost nearly every close race.
When Mr. Obama took office, Democrats owned 29 governorships. After
Tuesday it is 15, with ballots in North
Carolinas tight race still being
counted. Democrats controlled 60 of
the 99 state legislative chambers in
2010. Today it is 30. Now that Republicans have won the Kentucky state
House for the first time in 95 years,
Democrats no longer control a single
legislative chamber in the South. The
party of the left will hold the governorship and both chambers in precisely
five states.
This isnt to take away from Mr.
Trumps supporters, or his message.
But the numbers above are a reaction
to Democratic failureto a president
who rammed through unpopular legislation and governed via executive order
and extralegal regulation. Tuesdays results are a response to a government
that targeted conservative nonprofits,
left veterans on waiting lists, botched
a health website and left the world to
burn. My legacy is on the ballot, Mr.
Obama said in September, in what was
the truest statement of the campaign.
Lets not be chintzy: Theres plenty
of Democratic blame to go around. Mrs.

Clinton could have run a change campaign and moved her party back toward the centrism that earned Bill
Clinton all those white, working-class
voters. She instead catered to the progressive left. One exit poll shows Mrs.
Clinton won union households by 2
percentage points, when Mr. Obama
carried them by 18. Of the 207 swing
counties that went for Mr. Obama only
once (in 2008 or 2012), Mr. Trump won
194. This is an utter abandonment of
the Democratic Party that Mr. Obama
and Mrs. Clinton led.
Its also an extraordinary grant of
power to Republicans. Theyd be wise
to immediately understand that they
now own the results. Voters are giving
the GOP one chance to deliver on the
change it has promised, and the party
cant afford easy mistakes.
The risks are obvious: First is the
threat of internecine warfare. Mr.
Trump has promised to drain the
swamp that is Washington, D.C. But if
he chooses to battle his own caucus
Not to take away from

the GOP victory, but
this was a rejection
of Obamas governing.
which, after years of primaries and
turnover, is far more reformist than
even a few years agohe risks alienating his core supporters. Similarly, if
GOP purists in Congress decide to ride
herd on their leaders and on Mr.
Trump, demanding perfection over
progress, Republicans will look even
more ineffective than they did out of
power.
The nascent talk of firing Paul Ryan
is as counterproductive an idea as they
come. From the perspective of getting
things done, Mr. Trump has an almost
ideal team: a House speaker who is the
ultimate policy wonk; a Senate majority leader, Mitch McConnell, who is a
master tactician; a vice president-elect,
Mike Pence, who has great relations
with both men, knowledge of Congress
and the ability to serve as a go-between.
The other obvious risk is that Mr.
Trump might try to fix all of the
Obama mess, all at once. Thats a recipe for a muddle. Republicans could do
nothing smarter in the coming weeks
than agree to prioritize a few sweeping, key initiativessay, health care
and tax reformthat would immediately boost the economy. Earning public trust with big, early victories will
buy time for more reform down the
road.
Republicans have been elected as the
anti-Obamas. Which means theyve
been elected to make things better. If
they can remember that, they have a
shot.
Write to kim@wsj.com.
Make the Solar

System Great Again
By Mark R. Whittington
cle, the heavy-lift Space Launch System and the Asteroid Redirect Mission. Will President Trump cancel one
or more of these and pursue commercial alternatives? How much will he
increase NASAs budget, if at all?
What about international partnerships to exercise soft power and share
the burden of space exploration?
Mr. Trump should meet with space
experts in Congress to discuss these issues. One of President Obamas greatest
mistakes was to ignore pleas from lawmakers and abruptly cancel President
Bushs Constellation program, which
would have put astronauts back on the
moon by 2020 and on Mars at an undetermined date.
The president-elect isnt a policy
wonk, but no one doubts his ambition
or love for epic projects. Mr. Trump
could make the American space program into an engine of renewal that
could last for decades. Maybe a Donald
IV can build the Trump Tower Mars.
onald Trump didnt win the election because of his space policy.
Few voters probably realized that
he has one. But if the Trump administration implements the candidates platform, NASA could undergo the kind of
transformation not witnessed in a generation. Although major questions remain unanswered, Mr. Trump has an
ambitious plan for the U.S. to push into
the final frontier.
Heres what Trump advisers Robert
Walker and Peter Navarro suggested last
month in Space News magazine: Human exploration of our entire solar system by the end of this century should be
NASAs focus and goal. That implies Mr.
Trump wants astronaut boots on the
ground of the moons of Jupiter and Saturnand even Plutoduring his grandchildrens lifetimes. Current policy calls
for a trip to Mars, but Mr. Trump seeks
to go a couple billion miles deeper into
space.
Mr. Whittington is a writer in HousThe foundation of Mr. Trumps efforts, his advisers explained, will be ton.
public-private partnerships. For instance, he will try to transform the International Space Station into a quasipublic
facility
supported
by
international contributions and resupplied utilizing commercially available
THE WALL STREET JOURNAL
services. Leveraging the private economys expertise and flexibility would
accomplish much that NASA cannot
do on its own. A Trump administration
will establish a national space-policy
council, led by Vice President Mike
Pence, to coordinate NASA, military and
commercial activities.
However, Messrs. Walker and Navarro left out important details. Will
NASA proceed with the planned journey to Mars by the 2030s? Or will the
space agency return to the moon first?
To what extent will commercial efforts
be integrated into NASAs missions of
exploration?
Is it just me or have these
They did not mention other future
numbers lost their crunchiness?
initiatives: the Orion deep-space vehi-
Pepper ...
And Salt
OPINION
By William A. Galston
hen the tide goes out,

Warren Buffett once
said, you can see who
has been swimming
naked. On Tuesday
night, the Obama tide subsided, exposing the Democratic Partys structural weakness.
Yes, Barack Obama won two presidential elections by substantial
margins. But his was a personal
and, it turns out, nontransferable
victory. During his eight years in office, the Democratic majority in the
Deep-seated discontent
challenges leaders
of the center-left as
well as the center-right.
House of Representatives yielded to
the largest Republican majority since
1928. Republicans took over the Senate majority in 2014 and held it this
year against daunting odds. In the
states, Republicans have gained
more than 900 legislative seats since
Mr. Obama was inaugurated and now
control more than three-fifths of all
state legislatures. As Mr. Obama
took office, 29 governors were Democrats. This total now stands at 15,
with one race still in doubt.
The consequence of these losses
is a depleted Democratic bench. An
entire generation of potential national figures has been wiped out,
leaving the party with a huge gap

between newcomers and aging baby
boomers.
Beyond the dearth of national
leaders waiting in the wings, the
Democrats now confront a programmatic and ideological challenge.
When the British Labour Party lost
its national majority after a series of
electoral victories under Tony Blair,
the partys left wing, which had
never accepted Mr. Blairs New Labour platform, seized control and
installed Jeremy Corbyn, a fringe
figure, as Labours new leader. Few
observers of British politics believe
that Mr. Corbyn could ever win a national election.
The Democrats now risk a similar
fate. As the 2015-16 intraparty contest showed, the Bill Clinton-era
New Democrat policies are a spent
force. Democrats grass-roots energy
is on the left. Sen. Bernie Sanders, a
lifelong democratic socialist who
joined the Democratic Party just in
time to compete for its presidential
nomination, mounted a surprisingly
strong challenge, forcing Hillary
Clinton to move toward him on issues ranging from the Trans-Pacific
Partnership to student-loan debt.
The Sanders-Warren wing of the
party was allowed to play a dominant role in drafting the party platform. During the campaign, Sen.
Warren made it clear that her forces
would demand a veto over Hillary
Clintons appointmentsespecially
in the area of financial regulation
if Secretary Clinton won the election. The Corbynization of the Democratic Party could consign it to
AGENCE FRANCE-PRESSE/GETTY IMAGE
Democrats Also Need to Think Anew
Hillary Clinton conceding the election Wednesday in New York.

minority status for a long time.
But as the saying goes, you cant
beat something with nothing. Last
Tuesday, Brexit jumped the Atlantic,
reflecting deep-seated discontent
that challenges leaders of the centerleft as well as the center-right. Lacking a compelling formula for accelerating economic growth and boosting
wages, Mrs. Clinton could offer only
incremental proposals which, however carefully crafted, failed to resonate with average voters.
Her campaigns initial thematic
focus on inclusive growth gave way
to proposals that focused more on
redistribution than on expansion. Although Donald Trumps focus on
trade and immigration as the principal sources of working-class ills was
unbalanced and misleading, it
packed a punch. As Mrs. Clintons

husband once said, strong and
wrong beats weak and right every
time.
The Democratic Party needs a
clear, coherent alternative to both
populism and technocratic elitism. It
needs an alternative to both self-defeating protectionism and the failed
faith that globalization will work to
everyones advantage. Democrats
need a way of giving ordinary citizens the confidence they now lack
that the forces of globalization and
technological change can be harnessed to promote their well-being
and that effective action by government is part of the solution.
The challenge for the Democratic
Party begins with economic policy
but does not end there. At a time
when government, especially at the

national level, is in disrepute, Democrats convey an impression of satisfaction with the status quo. Here
again, the Clinton campaign failed to
translate its early thematic focus on
reform into an agenda that spoke
to the concerns of discontented citizens.
Secretary Clintons proposed constitutional amendment to reverse
the Supreme Courts Citizens United
decision said nothing to the tens of
millions of Americans who see the
federal government as a self-dealing
swamp. If it were constitutionally
permissible, I suspect most Americans would support legislation requiring senators and representatives
to return home after leaving office.
The alternative, it seems, is an endless revolving door.
But meaningful reform will not be
possible unless Democrats re-examine their assumptions about governance. The administrative state is
not omni-competent. Regulation is
not the solution for every economic
and social ill. Not only does the regulatory process fuel an army of lobbyists; it pours sludge into the entire
governance system, slowing to a
crawl the translation of publicly supported goals into real change on the
ground and intensifying the publics
doubts about governments capacity
to act effectively.
Intellectual renewal is a necessary
precondition for political revival. Its
time for Democrats to start thinking.
Mr. Galston writes the Politics &
Ideas column for the Journal.
Where Are the Visas for the Afghans Who Helped American GIs?
By Juliana Goldrosen
And Ari Hoffman
ismat, a young Afghan who

bravely served as an interpreter alongside American
troops in the hills of Tora
Bora, spent the U.S. Veterans Day
last Friday as a target of ISIS, in
mortal danger due to his service to
the U.S.
Also on Veterans Day, members
of Congress honored the men and
women who nobly served America.
What you may not hear in their
speeches and news releases, however, is an acknowledgment that,
unless Congress acts, it will abandon to their fate more than 10,000
Afghans who worked alongside
these veterans, including Qismat.
The Afghan Special Immigrant
Visa program, traditionally a popular and bipartisan measure, provides
a path for Afghans who worked as
interpreters or in other critical positions for U.S. military forces and
diplomats to seek refuge in the U.S.
Because of their service to the U.S.,
these Afghans face extreme persecution and constant danger.
Until this year, Congress has reauthorized the SIV program with
little controversy. Yet the current
version of the fiscal year 2017 National Defense Authorization Act,
the usual vehicle for SIV allocation,
would authorize no additional visas.
That means that once the remaining
2,500 visas are allocated, the
10,000-plus Afghans awaiting visas
will be stranded.
Judging by some reports, a handful of legislators opposed an SIV
provision in the Defense Authorization bill, stating that they had procedural objections or that they did
not want to allocate visas while
then-unused visas remained. Yet
since these Afghans were screened
before their employment on behalf
of the U.S., and would undergo another rigorous, months-long screening process before qualifying for a
visa, there is no excuse, security or
otherwise, for blocking this provision.
At the Stanford Law chapter of
the International Refugee Assistance Project, we are proud of our
many veteran members and classmates, and we stand with them in
their efforts to assist their former

interpreters immigrate to the U.S.
through the SIV program.
Stanford Law student Matt Ball
is a former Army Ranger who
served during 2010-11 in the Tora
Bora region in Eastern Afghanistan,
conducting counterinsurgency operations. His unit sustained a disproportionate number of casual-
Thousands who risked

their lives for U.S. forces
are now hunted by
insurgents and cant
escape Afghanistan.
tiesand one of the wounded was
the then-20-year-old Qismat, who
served as the units interpreter and
main conduit to the Afghan people.
Due to his service to the U.S., he
has not been able to return to his
hometown for more than six
yearsespecially since ISIS members came looking for him last year.
With Mr. Balls help, Qismat applied
for a visa through the SIV program

in 2013, but his application is in
limbo due to the programs extensive backlog.
Another law student, Joe Reed, is
a former Marine infantry officer
who deployed twice to Helmand
province. On his first deployment in
2011, an Afghan interpreter nicknamed Rocky quickly became an integral part of the unit. Rocky lived
in primitive conditions with the
platoon, made possible all communication between the Marines and
local Afghans, and often went on
multiple combat patrols a day in
proximity to improvised explosive
devices and exposed to enemy fire.
When Mr. Reed last heard from
him, Rocky was still waiting for a
visa.
Stanford Graduate School of
Business student John Powell also
deployed as a Marine infantry officer to Helmand province. His platoons interpreter quickly turned
into their most important asset.
They worked on a grueling schedule, often patrolling five times a
day. While Mr. Powell rotated his
squads to spread the burden, his in-
terpreter insisted on accompanying

every patrol that left the compound.
When Mr. Powells platoon went
back home, the interpreter (who is
not named here for safety reasons)
stayed on to work for the next two
follow-on Marine units. After the
interpreter applied for an SIV, he
and his family received death
threats from a newly resurgent Taliban in the area. His visa application has been on hold for two years,
and he and his family had to flee
their home province to escape retribution. Mr. Powell keeps in touch
with him, and his pleas for help
have become more desperate in the
past months.
We call on our leaders in Congress to reauthorize and increase
the visa allocation for this critical
program. On the line are the lives
of Qismat and many other Afghan
interpreters and their families.
Ms. Goldrosen and Mr. Hoffman
are students at Stanford Law
School and members of the Stanford chapter of the International
Refugee Assistance Project.
Meet Pro-Growth Trump

The known known
was an appetite
for change in the
land,
but
two
known unknowns
were also important in Tuesdays
BUSINESS
outcome. One was
WORLD
whether
voters
By Holman W.
could stomach the
Jenkins, Jr.
especially high-risk
gamble that Donald Trump uniquely represented.
The other was whether they could
withstand the howling wind of elite
disapproval issuing from their TV
sets.
Mr. Trump, as Wednesdays
stock-market rally indicated, has
gotten off to a good start reassuring economic decision makers that
the world hasnt ended. He can still
throw it all away, and quickly, if he
embroils the U.S. in a tit-for-tat war
with major trading partners. But
heres betting he wont.
His signature promise, a wall
against Mexican immigrants, cannot
spring up overnight. He will pro-
duce maps, models and designs

while negotiating with Mexico over
what might even be a useful revision to the North American Free
Trade Agreement. He will declare
victory.
He will be content with such
trade-law cases against China on
steel and aluminum as are already
progressing through the U.S. and
international trade courts. To fulfill
at least one campaign threat, illegal
immigrants may have to take it on
the chin for the first six months of
a Trump administration. But Mr.
Trump was already repositioning
himself to be the growth president
well before his surprise triumph on
Election Day.
By virtue of being elected, he
ends various Obama regulatory
wars against major sections of the
U.S. economy. That can only be
bullish. A tax reform, along traditionally idealistic GOP lines with
lower rates and fewer loopholes,
can only be bullish.
The secular stagnationists are
not wrong to worry about demo-
graphic headwinds and debt. Those

challenges are real. But if we can
get 2% growth with the tax code
and regulatory policies we now
have, 3% ought to be within reach if
we get better policies.
Grab that low-hanging fruit, Mr.
Trump. You and your team deserve
credit for eking out an electoral-college victory. But you lost the popular vote. You won fewer votes than
Mitt Romney did in 2012. You barely
surpassed John McCains totals in
his blowout 2008 loss. For a mandate that doesnt fall apart with the
first scandal or shapely ghost from
your past, earn it with success on
the growth front.
There remains an overhang of
uncertainty due to the debt problems of Europe, China and Japan
which could bloom into a global financial crisis at any minute. We
shudder to think of the populist
remedies a President Trump might
reach for to buck up his standing.
CLSA banking analyst Mike Mayo
pronounced this weeks election the
end, finally, of the 2008 financial
crisis. He meant an end to the punitive actions against business that,
as we should have learned in the

seminal 1930s, only prolong the
pain.
Unfortunately Mr. Mayo could
prove premature. Large parts of the
Trump arsenal of policy promises
during the campaign were, sadly, of
exactly this sort. Start a trade war
with China. Interfere in the plantsiting decisions by American businesses like Ford and Carrier trying
to maintain their global competitiveness. Block the AT&T-Time
Warner merger. Relaunch the political war on the banks by resurrecting Glass-Steagall. Attack Amazon
because of some obscure grievance
against its founder Jeff Bezos.
Thats why the stock-market
boom that has greeted the president-elect is important. It will give
support to his pro-growth instincts,
rather than his retributive ones.
Assuming Mr. Trump does not
shoot himself in the foot, the biggest danger in this hopeful moment
may come when Democrats, cut out
from a share of power in Washington and increasingly routed in the
states, resort to extracurricular
measures. Their target: Mr. Trumps
business interests and the lingering

pall of lawsuits hanging over them,
which left-wing activist groups will
use to try to disable the nations
new commander in chief.
Mr. Trump still gets grief, even after Election Day, for not releasing his
tax returns. But then there never
was a presidential candidate with tax
returns like Trumps, reflecting his
personal ownership or contractual
stake in hundreds of businesses.
There never has been a president
like Mr. Trump, either, whose ongoing business enterprises embroil
him, by the count of USA Today, in
75 pending lawsuits, not all of
which are trivial. For instance, the
highly partisan New York attorney
general has a RICO suit outstanding
against the proprietor of Trump
University.
So heres one outcome of this
race that voters may not have bargained for. It will be a test of
whether America, with its bureaucratization, over-legalization and
overregulation of society, has made
it impossible for anyone who has
led an interesting, nonpolitical life
to function as president.
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Notable & Quotable

From a Nov. 8 article by Alvaro
Vargas Llosa entitled How China
Has Created Its Own TPP on the
National Interest magazines website:
Today, while U.S. politicians are
busy running from and against the
Trans-Pacific Partnership, China already has free-trade agreements
(FTAs) with nine of the twelve TPP
signatories. While the United States
was talking, China was acting, completing agreements with Australia
and Chile in 2006, New Zealand and
Singapore in 2008, Peru in 2009,
and the Association of South East
Asian Nations (ASEAN)which includes TPP members Brunei, Malay-
www.ebook3000.com
sia and Vietnamin 2010.

Chinese investment in the region
also has skyrocketed, Iskyan notes,
increasing more than 350 percent
among the ASEAN nations alone
from 2006 to 2014.
While U.S. politicians are debating
whether TPP is the best way to contain Beijing or a Trojan horse of Chinese economic imperialism (even
though China isnt even part of the
treaty), the Chinese have created
their own TPP and theyre busy expanding it.
The ties go well beyond trade and
investment.
China also is building new links to
their trading partnersphysical
links, including airports, roads and
portsproviding everything from

the concrete, steel and labor to the
financing to pay for them. As Harold
L. Sirkin, a senior partner at the
Boston Consulting Group, wrote in
Forbes, Chinas Belt and Road initiativethe name of the ambitious
$1 trillion programwill strengthen
Chinas ties to other nations, while
the United States is in apparent retreat. Sirkin concludes: The United
States can do everything that is necessary to successfully compete in tomorrows world or we can go into
decline. If we become a trade prima
donna, he warns, we open the door
to the Chinese, who are ready, willing and able to fill any void we create.
LIFE & ARTS
NATIONAL GEOGRAPHIC CHANNELS
TURKEY
TELEVISION
Mars: A New
Frontier for TV
New Series Marks Rise of Premium Nonfiction

and Relaunches National Geographic Brand
The National Geographic TV series Mars is a joint mission: A

science documentary about the
quest to reach the red planet, combined with a science-fiction drama
about a crew of astronauts who
make it there in the year 2033.
The six-episode series also represents something of a moonshot
for National Geographic. Its the
networks most expensive TV project ever, with a production budget
of up to $20 million. Its Monday
premiere is being used to relaunch
the entire National Geographic
brand, including the 128-year-old
magazine.
For the TV channel, that means
fewer reality shows about rugged
characters and more high-gloss
documentaries about science, adventure and exploration. We are
going to take bigger swings, says
Tim Pastore, president of original
programming and production, as
National Geographic tries to break
out in a muddy, competitive marketplace.
The channel is part of a joint
venture between the National Geographic Society and 21st Century
Fox. 21st Century Fox and News
Corp, parent company of The Wall
Street Journal, share common
ownership.
With the reality TV boom fading, the buzzword in the industry

is premium nonfiction. Cable
channels are investing in movies
and miniseries with ambitious
topics, bigger budgets and A-list
filmmakers in hopes of turning
documentaries into television
events that approach the theatrical. Docs are taking on new luster
in the TV business as streaming
video companies pour resources
into the format, hunting for
binge-worthy stories such as Netflixs true-crime series, Making a
Murderer.
History on Monday is expected
to announce an eight-hour series
produced by Leonardo DiCaprio
called Frontiersmen, about pioneers including Daniel Boone, Tecumseh and Lewis and Clark. A&E
is using the name recognition of
Oscar winner Alex Gibney to promote a new documentary series he
executive produced, The Killing
Season, which investigates an unsolved serial-killer case on Long
Island. Discovery recently aired a
horrormentary directed by Morgan Spurlock called Rats, which
premiered at the Toronto International Film Festival in September.
To create the event-level docs
that networks want, producers are
taking stylistic leaps and breaking the genre in a way you
couldnt do before, says Justin
From top: Scenes from National Graphics new television series, Mars.
Wilkes, Mars co-creator and
president of RadicalMedia. The
company produced Mars with
Imagine Entertainment, founded
by Brian Grazer and Ron Howard,
veterans of the Hollywood blockbuster who have recently pushed
into documentaries. The risky dual
format of Mars helped encourage National Geographic to build
its rebranding plan around the series, whose rollout includes two
books, a speakers tour and a curriculum guide for schools.
Mars didnt start out as a
scripted/unscripted hybrid. RadicalMedia initially planned to make
a straightforward documentary
about SpaceX, Elon Musks commercial space company. But Mr.
Musk wanted something bigger,
which led to the idea of creating a
futuristic story around the drama
inherent to the founders space
plan. As Mr. Musk says in the premiere episode of Mars, either
were going to become a multiplanet speciesor were going to
be stuck on one planet until some
eventual extinction event.
Directed by Everardo Gout,
Mars starts in 2033 with the
launch of a crews historic jour-
Weather
ney to Earths neighbor via a ship

designed by a space visionary
played by actor Olivier Martinez.
About seven minutes in, the focus
shifts to interviews with real-life
engineers and experts.
It wasnt rocket science, but
marrying two different forms of
filmmaking was a challenge. As
writers invented the fictional
story set in the future, documentary crews spent months doing research and interviewing SpaceX
and NASA personnel. Transcripts
went to the writers to guide their
drama script and shore up its scientific accuracy. For instance, interviews with engineers working
on the landing system of SpaceXs
reusable rocket inspired a cliffhanger scene in the first episode.
In the editing room came the
trial-and-error process of weaving
the documentary footage into the
drama to ground it in realitybut
without weighing down one side
or the other. After a documentary
crew captured scenes of a headline-grabbing SpaceX maneuver,
the filmmakers restructured the
drama in the last episode around
the footage. Says Mr. Wilkes,
That was season-finale material.
The WSJ Daily Crossword | Edited by Mike Shenk

Shown are todays noon positions of weather systems and precipitation. Temperature bands are highs for the day.
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k k
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T-storms
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yd ey
Global Forecasts
s...sunny; pc... partly cloudy; c...cloudy; sh...showers;
t...tstorms; r...rain; sf...snow flurries; sn...snow; i...ice
Today
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City
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11 2 pc
Paris
8 5 pc
Philadelphia
16 8 pc
Phoenix
30 15 s
Pittsburgh
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Port-au-Prince
31 22 pc
Portland, Ore.
15 10 r
Rio de Janeiro
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Riyadh
30 11 s
Rome
15 7 r
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San Diego
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San Francisco
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San Juan
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Santiago
28 10 pc
Santo Domingo 31 23 pc
Sao Paulo
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Seattle
14 8 r
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Singapore
30 24 c
Stockholm
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30 22 s
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23 9 pc
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HOCKEY GAMES | By Mae Woodard

Across
1 Truck stop
vehicles
6 Programmers
output
10 Frequently, to
poets
13 Reception desk
worker
14 Homecoming
group, for short
16 For each
17 Hockey score by
an aging
monarch?
19 Sch. fundraiser
sponsor
20 Nintendo
console
21 Bumble Bee
product
22 Forget it!
24 Release into the 47 In the cereal

bloodstream, say
bowl too long,
maybe
26 Jurors take them
48
Like
the pig at
27 Like a relaxed
a luau
hockey player?
31 Witch trial town 52 Rich cake
34 Versatile cards in 54 Sunrise direction
blackjack
55 French friend
35 Soaking spot
56 Entertainment
provider for GIs
36 Did some
gardening
57 Shoot to another
hockey player?
37 Theyre cast in
November
60 Road gunk
39 Plateaus cousin
61 Make blank
40 Words with
62 Zellweger of
budget or roll
Bridget Joness
Baby
41 Ready for
streaking
63 Person with a
cover
42 Fresh
64 Place for a
43 Hockey venues
peephole
doubling as
chapels?
65 Fills completely
Solve this puzzle online and discuss it at WSJ.com/Puzzles.
Hi
7
4
19
20
31
15
35
13
3
18
18
16
7
31
28
12
31
15
16
25
21
13
32
15
15
3
City
Geneva
Hanoi
Havana
Hong Kong
Honolulu
Houston
Istanbul
Jakarta
Johannesburg
Kansas City
Las Vegas
Lima
London
Los Angeles
Madrid
Manila
Melbourne
Mexico City
Miami
Milan
Minneapolis
Monterrey
Montreal
Moscow
Mumbai
Nashville
New Delhi
New Orleans
New York City
Omaha
Orlando
Today
Hi Lo W
7 0 s
30 24 pc
29 16 pc
27 22 pc
29 22 pc
26 13 s
12 7 s
32 24 t
24 13 t
18 5 s
25 12 s
25 17 pc
13 11 c
30 14 s
15 2 s
33 25 r
15 10 pc
21 12 pc
27 20 pc
9 2 pc
11 4 pc
24 14 pc
11 4 s
-3 -7 c
34 24 pc
20 6 s
29 13 pc
24 13 s
15 8 s
17 3 s
26 12 pc
63
62
Flurries
b
Melbourne
City
Amsterdam
Anchorage
Athens
Atlanta
Baghdad
Baltimore
Bangkok
Beijing
Berlin
Bogota
Boise
Boston
Brussels
Buenos Aires
Cairo
Calgary
Caracas
Charlotte
Chicago
Dallas
Denver
Detroit
Dubai
Dublin
Edinburgh
Frankfurt
ILLUSTRATIONS BY MIKE SUDAL
BY JOHN JURGENSEN
Continued from page A8

ham. Other events include the
preschool classroom celebration for their three-year old son
Everett; Mr. Streebs catered
company party, and the two
official family Thanksgivings:
Ms. Streebs family in Boulder,
Colo., and Mr. Streebs family in
Littleton, Colo.
In recent years, the Boulder
branch of the family has hosted
a Thanksgiving brunchfeaturing cranberry and walnut pancakes and turkey croissant
sandwiches. That ones my favorite, says Ms.
Streeb. The arrangement allows
family members
enough time to
visit other
branches of the
family for dinner in
the evening.
The average American has at
least two Thanksgiving meals,
according to a Nielsen survey
of 2,000 adults conducted earlier this month. Of those survey
respondents, people ages 18 to
34 say they eat more than four
Thanksgiving meals on average.
And those who celebrate a
friends-only Thanksgiving are
likelier to be more
inventive with the
menu: 39% of
celebrants say
they are likely to
incorporate a
side dish from another culture, compared with 20% of those who
dont celebrate Friendsgiving.
Supermarkets and grocery
stores are getting in on the
multi-meal trend. Online grocer
FreshDirect sees a spike in
smaller bird sales in the week
leading up to Thanksgiving,
which it attributes to the growing friends-only Thanksgiving
phenomenon. This year, it is
pitching the idea of multiple
Thanksgivings to customers
with a Nov. 17 social-media promotion encouraging people to
post real-time
Friendsgiving
dishes on Instagram. In 2015,
20% of prepared
sides intended to
be eaten within a
few days were delivered the week before Thanksgiving, an indication that consumers are enjoying more than
one Thanksgiving meal, says
FreshDirect spokeswoman
Becky Wisdom.
Elana Karp, head chef of
New York-based meal-delivery
service Plated, says it has
moved toward other ways to
celebrate during the week,
than traditional turkey.
An acorn squash with cornbread and sausage stuffing could
work as something to bring to
the in-laws. A Thanksgiving
grilled cheese sandwich with
cranberry could work for a kindergarten classroom celebration.
Down
1 Flat-bottomed
boats
2 Pop singer
Goulding
3 Combat doctor
4 Annoy
5 Winter Olympics
group
6 Angels With
Dirty Faces star
7 Gymnast Korbut
8 The Everly
Brothers, e.g.
9 Flows forth
10 Hot and cold,
for example
11 Cheese in a
Greek salad
12 Fairway hazard
15 Energyconserving
mammals
18 Phooey!
23 That lady
25 Marsh plant
26 Formerly
28 Western, in slang
29 Use four-letter
words
30 Online auction
site
31 Hulu choice
32 Top-notch
33 Anchors
top-of-thebroadcast
offering
37 Cutting edge
38 Bacchanalian
revelry
39 Physics quantity
41 Galoot
42 Hockey players,
e.g.
44 Forest female
45 More furious
46 Have a snack
49 Goading remark
50 Pageant host
51 Floodpreventing
embankments
52 Courage
53 Pronto, in
memos
54 Happy
Motoring brand
58 ___ Paulo, Brazil
59 Casserole bit
Previous Puzzles Solution

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The contest answer is MONET. Each of the five

starred entries conceals a number: 40 in
COMFORTYOURSELF, 8 in WEIGHTHE ISSUES,
2 in GOTWORD, 11 in PARALLELEVENTS, and 5 in
IFIVESAIDITONCE. Those five boxes in the grid
spell out contest answer Claude MONET, a fitting
answer since his name conceals the number 1.
TECHNOLOGY: MIDEAST COMPETITOR TO AMAZON LAUNCHES B3
BUSINESS & FINANCE
Yen vs. Dollar 106.74 g 0.08%
Monday, November 14, 2016 | B1
2016 Dow Jones & Company. All Rights Reserved.
Hang Seng 22531.09 g 1.35%
Gold 1223.50 g 3.32%
WTI crude 43.41 g 2.80%
10-Year JGB yield -0.031%
10-Year Treasury yield 2.118%
VW Confirms C02 Probe at Audi

BERLINVolkswagen AG
and its Audi AG luxury unit on
Saturday confirmed that U.S.
and European investigators
are looking into fresh irregularities related to levels of carbon dioxide emissions in certain
Audi
automatictransmission vehicles.
Volkswagen said it was in
talks with U.S. and European
regulators over the new issue,
which has emerged as a fresh
investigative strand in its
yearlong diesel-engine emission scandal.
The vehicles now in question are both gasoline and diesel powered.
The initial VW probe, news
of which broke last year, centered on software Volkswagen
admits to having installed to
mask a different sort of emission, nitrogen oxide, in many
of its diesel-powered cars.
Investigators are now looking into whether the way Audi
Factories
Will Soon
Get Much
Smarter
AKOS STILLER/BLOOMBERG NEWS
BY WILLIAM BOSTON
The Audi inquiry is a new front in VWs emissions scandal.

engineered some of its automatic transmissions was
aimed at reducing carbon dioxide emissions during lab
tests but allowing higher
emissions during normal road
use, Volkswagen and Audi con-
firmed.
The transmission in question was widely used in Audis
top sedans and sport-utility
vehicles. Audi engineered the
automatic transmissions to
run at very low revolutions
per minute during treadmill

tests to pass emissions tests,
but then to run at full performance on the road, resulting
in higher greenhouse-gas
emissions, according to a person familiar with the situation
and an internal Audi document
reviewed by The Wall Street
Journal.
The discovery of the use of
so-called defeat devices related to carbon dioxide emissions was previously reported
in a front-page article in the
Journal, but neither Volkswagen, Audi nor U.S. officials
had commented on the issue
until now.
Audi disabled the test-recognition system shortly before
Volkswagen admitted to cheating on diesel emissions in
2015, according to the person
familiar with the situation.
Volkswagen has been in negotiations with U.S. environmental authorities and the
Justice Department for a year
to settle allegations of fraud
and environmental violations

after using defeat devices to
cheat on diesel-engine testing
for a decade.
VW last year admitted to
installing the emissions-cheating software on nearly 11 million diesel vehicles worldwide. The company agreed in
June to a $14.7 billion settlement with the U.S. environmental authorities, state authorities and owners of
475,000 two-liter diesel vehicles affected in the U.S.
The company is still in talks
over a settlement in that earlier emissions scandal for
owners of 85,000 vehicles with
three-liter diesel engines that
were built by Audi. The carbon-dioxide issue has been
added to the agenda, Volkswagen said.
The fresh inquiries confirmed on Saturday are centered around a gear-shifting
system that the auto maker
calls a dynamic shifting proPlease see VW page B2
Auto Makers Plug Electric

Despite weak demand, the industry is betting regulations, emission scandals spur plug-in vehicles
MARK BLINCH/REUTERS
A Chevrolet Bolt EV electric vehicle. Moodys predicts 19 new electric models will go on sale in the U.S. alone by 2020.
Metals prices have swung

wildly since Donald Trump,
who has pledged to curb Chinese imports while investing
in infrastructure, was elected
president of
COMMODITIES the U.S.
Copper
prices on
the London Metal Exchange
were up 8.7% since the U.S.
election result, while aluminum and zinc were up 2.7%
and 2.4%, respectively.
Most metal prices tumbled
when it became clear that Mr.
Trump was headed to a surprise victory because traders
HONG KONGFor six years,

Chinese billionaire Jia Yueting
shrugged off skeptics as he
pursued his vision of a business that could challenge Apple Inc., Netflix Inc., Amazon.com and Tesla Motors
Inc. all at once.
The founder of LeEco Holdings appeared to defy gravity
as he built a second-tier video
site into a conglomerate spanning smartphones, TVs, electric cars, cloud computing and
a film studio, capped off in
August by a $2 billion deal to
buy U.S. TV maker Vizio Inc.
But a week ago, on Nov. 6,
Mr. Jia, 43, told employees
that his grand plansa multibillion-dollar spending spree
largely funded by debt and
venture moneymay have to
come down to Earth. In a
5,500-word letter, he said the
company expanded too quickly
and faces a cash crunch.
As we sped ahead blindfolded, and expanded our business by burning cash, we got
overstretched in our global
strategy, he wrote.
The coming weeks will feature big new showcases for the
humble electric-vehicle.
Auto makers, rushing to
meet tightening emissions
standards, will be unveiling
new battery-powered vehicles
at the Los Angeles Auto Show
this week, mirroring last
months flood of such cars by
European companies. These
curtain-raisers will be followed
by first shipments of General
Motors Co.s Chevrolet Bolt, a
$35,000 Tesla fighter that goes
on sale next month.
Whats missing are consumers, however. Auto makers are
suffering from a glut of U.S.
sedan and coupe inventory
amid strong demand for lighttrucks. The coming addition of
electric-vehicle capacity could
expand that oversupply if
shoppers continue to prefer
pickups and sport-utility vehicles to plug-in cars.

Globally, sales of plug-in
electric cars are up in 2016,
driven by Chinese customers
taking advantage of aggressive
tax rebates and other incentives. But total volumes remain
less than 1% of the 83 million
light-vehicles likely to be sold
this year.
Tesla Motors Inc.s pricey
electrics aside, cars such as Nissan Motor Co.s Leaf and BMW
AGs i3 havent widely caught
on, and many auto makers say
it is unclear when demand for
electric vehicles will rise.
That is sobering news for
executives hoping they will
help meet tougher emissions
standards. China, Europe and
the U.S. have established regulations prodding development
of electric cars. Whether tax
incentives and extensive efforts to lower battery costs
can spur demand in the short
term isnt a sure bet.

Moodys Investors Service
predicts 19 new electric models will go on sale in the U.S.
alone by 2020, potentially tripling what is currently available.
Auto makers presenting in
California this week, including
Tata Motors Ltd.s Jaguar and
Hyundai Motor Co., are expected to give updates on how
they will compete in this electrification race, and Fiat
Chrysler Automobiles NV will
show off a plug-in version of
its popular Pacifica minivan for
the first time just before the
Los Angeles Auto Show opens.
European auto makers have
become more optimistic about
electrics in the wake of Volkswagen AGs emissions-cheating scandal, which tarnished
diesels image as a green alternative to gasoline. Volkswagen
and Mercedes-Benz parent
Daimler AG, which combined
were unclear about his policy

positions. Since then, prices
have climbed as the market
considered the potential positive effect of Mr. Trumps call
for rebuilding infrastructure.
The swings underscore the
uncertainty about Mr. Trump
and what his agenda will
mean for the metals market.
Irrespective of the infrastructure boost, Trumps policies could negatively impact
Chinas exports to the U.S. if
Trump follows through on his
campaign pledges to place
trade restrictions on China
steel, cement and solar,
among other sectors, would
be vulnerable, said Alexander
Wolf, senior emerging markets economist at Standard

Life Investments.
Mr. Trumps election coincides with a global metals
glut. In recent months, Chinese producers have added to
the oversupply by stepping up
output of important metals
such as aluminum and steel.
Mr. Trump vowed to impose across-the-board tariffs
on imports from China, a
large exporter of metals to
the U.S. If China were essentially cut off from the U.S.
especially if Mr. Trump delivers on his promise to bolster
domestic producers and push
legislation to fund an infra-
structure boomthe excess

metal would wash up onto the
rest of the global market.
It is unlikely that Chinese
producers would be able to
turn off the tap quickly, which
could bring prices under pressure. But it is also unclear
whether Mr. Trump would cut
China out of a U.S. infrastructure boom, given his business
background and his own use
of metals imported from
China, analysts said.
Metals prices will remain
volatile in the absence of clarity on Mr. Trumps policies,
said Daniel Hynes, commodity
analyst, ANZ Bank. If the isPlease see METALS page B2
www.ebook3000.com
sell 13 million vehicles a year,

predict electrics will account
for between 15% and 30% of all
vehicle sales by 2025.
Not everyone is as bullish.
At the Paris auto show, for
instance, BMW AG sales chief
Ian Robertson said diesel will
remain the preferred energy
source in Europe even in the
wake of Volkswagens problems.
We see some gasoline plug-in
hybrids replacing diesels, but
its inconclusive, he said.
There doesnt appear to be a
tipping pointanytime soon.
Researcher IHS Automotive
expects the launch of new EVs
to quadruple annual U.S. electric-car sales to about 320,000
by 2020, still less than 2% of
the current market. Selling
them would require heavy government incentives amid continued cheap gasoline and
Americas love for SUVs, it believes.
Please see GLUT page B2
Only one of LeEcos business unitsthe Shenzhenlisted Leshi Internet Information & Technology Corp.,
which runs its video siteis
profitable, according to the
company.
Any further financial strain
for LeEco would have broad
implications in China and beyond. With its ability to raise
new funds in doubt, investors
will be watching closely
whether it can close the Vizio
deal. Mr. Jia said in an interview the deal wont be affected and he expects future
acquisitions in the U.S. The
letter, he said, wasnt meant to
spook investors but rather to
demonstrate his determination
to carry on with his vision despite difficulties.
Visio said the deal is still in
progress but declined to comment.
As Chinas economy slowed
in the past few years, LeEco
was one of many mobile-internet companies that drew investors seeking assets that
could fight the tide. But cooling sentiment toward tech
startups this year has made
attracting money more difficult.
The market capitalization
and valuation of LeEcos various businesses dont make
sense under the current market conditions, said Zhang Yifan, managing director at
Shenzhen Commando Capital
Asset Management Co., who
doesnt own shares in the
company.
Mr. Jia has employed unorthodox methods to fund his
Please see LEECO page B3
Shoppers Delight
AGENCE FRANCE-PRESSE/GETTY IMAGES
BY WILLIAM BOSTON
AND JOHN D. STOLL
Trumps Win Drives Metals Volatility

BY BIMAN MUKHERJI
BY LI YUAN
Any further financial

strain for LeEco
would have broad
implications in
China and beyond.
eres a paradox of
Americas highly automated, increasingly labor-independent manufacturing: While sophisticated, for
the most part, it isnt all that
high-tech. Picture metalstamping machines in an
auto-parts factory that can
easily have a
long useful life
of up to 40
years.
Now picture the assembly line
KEYWORDS
CHRISTOPHER just outside
MIMS
Austin, Texas,
where Samsung Electronics Co. makes core chips for
Apple Inc.s iPhones. I toured
the facility last summer. It is a
pristine white environment
filled with WALL-E-like robots
ferrying boxes full of silicon
wafers from one station to the
next. Every detail of the factory is measured by sensors
pouring data into a centralized repository where it can
be processed to optimize production. The only humans
present are there to fix the
machines doing all the work.
But that means there is
still a big opportunity to use
in manufacturing all the
learning Silicon Valley has applied to, for example, advertising. People are really
thinking about applying venture capital and technology
innovation to things that are
10 times the size of the ad
market, says Jon Sobel, chief
executive of Sight Machine
Inc., which helps companies
process all the data coming
off their assembly lines. Manufacturing is a $12 trillion industry globally a year. Annual
spending on ads globally is
just north of a half a trillion
dollars.
This transformation in the
way we make things has many
Please see MIMS page B3
LeEco
Funding
ScareCasts
Doubts
SALES GALORE: Workers at a sorting center in Chinas Jiangsu

province during the Singles Day shopping festival on Nov. 11. B6
B2 | Monday, November 14, 2016
INDEX TO BUSINESSES
BUSINESS NEWS
These indexes cite notable references to most parent companies and businesspeople
in todays edition. Articles on regional page inserts arent cited in these indexes.
Nvidia........................B10
Alibaba Group
Holding......................B6
Amazon.com ............... B1
Apple...............B1,B3,B10
Paspaley Pearling.......B7
Q
Qorvo.........................B10
Bank of America.........A2
Rosneft Oil..................B5
Berkshire Hathaway...B9
Hon Hai Precision

Industry.....................B3
Hony Capital
(Beijing)....................B3
Samsung
Electronics..............B10
BlackRock....................A2
BMW ........................... B1
Broadcom .................. B10
Samsung SDI............B10
IHS Automotive..........B1
Santos.........................B3
Sharp...........................B3
Carlyle Group..............B9
China Petroleum &
Chemical....................B2
Japan Display..............B3
Tesla Motors...............B1
LeEco Holdings ........... B1

Leshi Internet
Information &
Technology Beijing...B1
Toyota Motor..............B2
Volkswagen ................B1
Crown Resorts............B3
D
Daimler........................B1
V
Vizio ............................ B1
Fiat Chrysler
Automobiles ............. B1
Netflix.........................B1
Foxconn Technology....B3
Nissan Motor..............B1
Wells Fargo.................B9
INDEX TO PEOPLE
A
Alabbar, Mohamed ..... B3
Ijichi, Takahiko............B2
Atkins, Paul ................ B9
Ma, Jack......................B6
Minerd, Scott..............A2
Mller, Matthias.........B2
Jeng-wu, Tai ............... B3
Jia Yueting..................B1
Santos, Juan Manuel.A4
B
Brown, Connor............A2
Buffett, Warren..........B9
Cucchiaro, Stephen.....A2
Levitt, Brian................A2
Trump,
Donald.....A1,A5,B9,B10
CHINA DAILY/REUTERS
A steel factory in Chinas Liaoning province earlier this year.
METALS
Continued from the prior page
sue of protectionism starts
to generate some anxiety,
[metals] prices will come under pressure, he said.
Already, China is facing
large U.S. tariffs. Under pressure from American steelmakers, the U.S. in the past year
has imposed tariffs as high as
266% on some steel from
China. It has imposed similar
punitive measures on aluminum products.
Few traders are

betting uncertainty
will stop soon, given
Mr. Trumps policy
ambitions.
While the U.S. is an important market for China, U.S.
imports of Chinese steel have
been on a downward trajectory in 2016, totaling 615,690
million tons in the first three
quarters of this year, less
than half of what was imported in full year 2015, according to Platts Steel Data
and Analysis.
Aluminum imports from
VW
gram in automatic transmissions installed in Audi models
such as A6 and A8 sedans and
the Q5 sport-utility vehicle,
the companies said.
Audi engineered the transmissions to run at very low
RPMs during treadmill tests,
but not to kick into a higher
performance mode unless the
steering wheel turned 15 degrees, as would be normal in
everyday road use, according
to the person familiar with the
situation and the internal Audi
documents. That ensured the
vehicles passed emissions
tests, but once on the road
were geared to enhance driving enjoyment. In performance
mode, the cars emitted higher
levels of carbon dioxide.
Volkswagen has been in
China doubled between 2011

and 2015, but have started declining this year.
If the U.S. imposes protectionist measures, it will likely
douse optimism that Mr.
Trumps proposed infrastructure spending will require
more metals flowing into the
U.S., analysts said.
Chinese steel exports declined for the three consecutive months ended in October
as domestic demanddriven
by a pickup in housing and infrastructure spendinghelped
absorb some of the extra
metal being produced.
But Chinese cities have recently taken measures to curb
speculation in the property
market, which will likely hurt
domestic demand even as
production of steel, aluminum
and other metals such as zinc
are being churned out at close
to record pace.
We are likely to see continuation of robust exports
for steel and aluminum, said
Eugen Weinberg, head of
commodities research at
Commerzbank.
Few traders are betting
that market uncertainty will
stop soon, given Mr. Trumps
policy ambitions and challenges.
I suspect details of the
policy and policy implementation will take some time,
said Mr. Hynes, the ANZ Bank
analyst.
talks about the issue with the
U.S. Environmental Protection
Agency for several months,
but has only recently briefed
Germanys KBA motor vehicle
agency.
This issue has been known
to the EPA since July, a
Volkswagen spokesman said,
adding that the EPA became
aware of the irregularities
through expanded testing of
VW, Porsche and Audi vehicles
using three-liter diesel engines
built by Audi.
Audi on Saturday said that
during routine testing dynamic shift programs can lead
to incorrect readings and results that cannot be reproduced.
The Volkswagen spokesman
said the company doesnt believe the shifting program violates any European laws, but
that the situation in the U.S. is
less clear and needs to be determined by U.S. authorities.
United Angles to Shrink Gap

BY DOUG CAMERON
Scott Kirby can be a whiz
with airline numbers, and
that is just what
United Continental Holdings Inc. shareholders are
craving as the nations thirdlargest carrier prepares for
its first investor day in two
years on Tuesday.
Mr. Kirbys hire as
Uniteds president from topranked AmerTHE WEEK
ican Airlines
AHEAD
Group Inc. in
August completed the
overhaul of the formers senior ranks by Chief Executive
Oscar Munoz. It also heightens expectations that the
Chicago-based carrier can
start delivering on the advantages offered by its creation six years ago.
United has a blessing and
one big problem.
Its lineup of routes leads
the global industry, spanning
the U.S. and connecting big
American business centers to
Europe, Asia and Latin America. However, it has stubbornly earned less revenue
from each mile of flying than
peers such as Delta Air
Lines Inc. Years of delayed
and canceled flights have
alienated high-paying corporate fliers and dented profits.
Despite an arguably better domestic and international network, United still
lags Delta on just about every
financial and operational metric, said Roger King, airline
analyst at CreditSights Inc.
The new team recruited by
Mr. Munoz has spent the
summer and early fall in a
root-and-branch review of every route the airline flies, executives have said. Those attending Tuesdays event
expect executives to lay out a
path for ending the gap with
Delta and others.
United declined to comment or make executives
available for comment.
LAURA SEGALL/ BLOOMBERG NEWS
G
Gavekal
Dragonomics.............B6
General Motors...........B1
Goldman Sachs
Group ........................ A2
Guggenheim
Partners....................A2
United Continentals hire of Scott Kirby, shown above in 2013, wrapped up a management overhaul
Mr. Munoz, meanwhile,
continues to pursue the
broad strategy laid out when
he took over as CEO in September 2015. After recovering following a heart transplant in January and
reaching a deal with activists
looking for a faster pace of
change, Mr. Munoz is credited by analysts with fixing
Uniteds poor history of labor relations and reversing
the record of late and canceled flights.
A key issue at the meeting above Uniteds headquarters in Chicagos Willis
Tower is how the airline defends its big airport hubs.
Analysts believe it has too
many and has failed to leverage enough of the business
from the big companies
around its main bases in Chicago, Newark, Houston, Los
Angeles and Denver.
New labor deals have also
placed upward pressure on
costs, as they have across

the industry just as the tailwind from low fuel prices
dies down. United has
pledged to improve profitability by $3.1 billion by
2018, and though that number is expected to be retained, investors want more
detail on the path and timeline.
Uniteds shares have outperformed peers in 2016, up
5.2% so far this year compared with a 1.4% gain at
American and an 8.5% drop
at Delta, according to FactSet data.
Big share buybacks$2.4
billion so far this yearhave
helped support the stock as
Mr. Munoz repeated the formula he applied at CSX
Corp., the railroad operator
he helped turn around as
chief financial officer before
joining United.
One concern when Mr.
Kirby arrived at United was
that he would try to replicate Americans strategy of

matching discount rivals
prices in big markets such as
Dallas. The move kicked off
months of fare wars that rippled through the industry
and sent investors running
for the exits as ticket prices
fell.
So far, he hasnt. United
investors and analysts have
said they want the carrier to
maximize fares and profits,
not match the discounters to
defend market share.
One example from Mr.
Kirbys past flags his ability
to do just that, when he took
part in a contest with reporters while at US Airways.
Teams had to fill up a typical
flight by selecting passengers paying different fares in
a bid to maximize profits,
factoring in cancellations
and the lower prices paid by
connecting fliers. Mr. Kirbys
team won easily.
Chinas Oil Sector Faces Uncertainty

BY BRIAN SPEGELE
BEIJINGChinas beleaguered oil sector could face

fresh challenges following
Donald Trumps election as
president, with some in the industry warning that a harder
U.S. line toward China could
stymie potential investment in
the U.S. energy patch.
State-owned giants such as
PetroChina Co. and China Petroleum & Chemical Corp.
have long viewed the U.S. as
the golden egg of their global
deal making ambitions, with
its huge oil-and-gas reserves
and a stable regulatory and
political climate.
Now, Mr. Trumps election
is brewing new uncertainty in
the energy patch as experts
see an inherent contradiction
between Mr. Trumps pledge
to promote oil-and-gas drilling
and his campaign rhetoric decrying globalization.
Nobody knows what hell
do, said a person with ties to
Chinas top oil executives who
has promoted the idea of more
Chinese energy investment in
the U.S.
An attorney who works with
Chinese energy clients and others across Asia said he began
fielding questions soon after
Mr. Trump was declared victor.
It has been a constant barrage of questions about what
does this really mean, said
David Wochner, who leads the
policy and regulatory practice
at law firm K&L Gates.
On one hand, Mr. Trump
and his team likely could be
convinced of the value to the
U.S. economy of exporting
GLUT
There really isnt enough
of a market to do justice to all
of the development and effort
being put into EVs, said IHS
analyst Paul Lacy.
Toyota Motor Corp., a
critic of pure electric vehicles
and heavily dependent on sales
of light trucks and hybrid vehicles that require gasoline for
most travel, said on Tuesday it
is reluctantly changing course.
Though electric vehicles
have many issues such as its
range, and the length of recharging time and battery per-
huge importer, and continues

to grow each year.
As a result, its companies
have been scoping out potential investment in everything
from stakes in U.S. oil and natural gas fields to energy infrastructure such as pipelines
and export terminals on the

Gulf of Mexico coast. That includes big state-owned energy
giants and a host of smaller
companies that are eager to
cement
their
footprints
abroad, say people who advise
the companies.
No doubt, getting a foot in
the door in the U.S. has never
been particularly easy for
Chinas energy companies.
Most notably is the failed
takeover attempt of U.S. oil
producer Unocal Corp. by
Chinas state-owned Cnooc
Ltd. in 2005. Cnoocs bid at
the time suffered from a wave
of anti-China sentiment on a
wide range of issues including
Chinas trade practices
closely mirroring what Mr.
Trump says today.
Under the Obama administration, Chinese companies
found greater footing. They
successfully completed a number of deals, including with
U.S. shale pioneer Chesapeake
Energy Corp. and others.
Today Mr. Wochner advises
Chinas energy companies to
engage early with the new administration to form a better
sense of how regulations may
change. Political analysts say
the uncertainty will spur much
consternation in Beijing.
Mr. Trumps victory likely
will increase the level of political risk associated with investing in the United States in the
eyes of many Chinese energy
executives, said Erica Downs,
a China energy expert at the
consultancy Eurasia Group.
This will be a disappointment
because of the good investment opportunities here.
electric vehicles and charging

stations in half to one million
electric vehicles and more
than one million charging stations by 2020.
There are positive developments, including big investments coming in the U.S.,
China and Europe for charging
stations. Costs for lithium-ion
batteries have fallen 65% since
2010to about $350 per kwh
in 2015and are expected to
continuing falling, analysts
say.
This could lead to a decline
in EV development costs even
as the cost to create cars with
conventional engines rises. At
some point these two curves
will cross, Volkswagen Chief
Executive Matthias Mller

said. Exactly when that is we
cant say,
Hyundais vice president of
product
planning,
Mike
OBrien, recently said the company isn't looking for governments or oil-price fluctuations
to drive change. The market
is going to switch and the
dominant player in the marketplace will be millennials,
he said.
Shifting demographics and
urbanization will by themselves contribute to a significant change of electrified vehicles adoption, separate from
fuel price and regulation.
Adrienne Roberts
CHEN JIANLI/XINHUA/ZUMA PRESS
A
Alibaba........................B3
A worker upgrades an oil tank in Chinas Tibet Autonomous Region.

more energy, he said.
But as you start to think
about Asian investmentChinese or otherwiseinto U.S.
energy infrastructure, and taking a stronger role perhaps in
the U.S. energy market, and
then having the ability to export the commodity to their
home country, I think it becomes a bit of a guessing
game at this point, he said.
As a candidate, Mr. Trump
pledged to slap a 45% tariff on
Chinese imports and to brand
China a currency manipulator.
Either one likely would trigger
retaliation by Chinas government, and sour bilateral ties
between the countries.
In many ways, the U.S. and
China are natural partners
when it comes to oil and gas.
The U.S. has significant export
ambitionsparticularly of liquefied natural gas that increasingly is made from abundant shale reserves. At the
same time, China already is a
formance, depending on the energy situation in each country
and region, and infrastructure,
we would like to get ourselves
ready to commercialize them,
said Takahiko Ijichi, Toyotas
executive vice president.
The International Energy
Agency, an energy policy advisory group whose 29 members
include the U.S., Germany and
Japan, said in its 2016 electric
vehicle outlook that it will require substantive policy support to accelerate the momentum of adoption of electric
cars.
Highlighting the difficulty
of matching ambitious sales
goals with real demand, Japan
this year slashed its targets for
Deal Hunting
Chinese direct investment in the
U.S. is surging.
$15 billion
10
0
2010 11
12
13
14
15
Source: Rhodium Group
TECHNOLOGY
MIMS
Continued from page B1
namesthe fourth industrial
revolution, the industrial Internet of Things, smart factories
but at base it is about harvesting as much data as possible
from all the machines in factories, shipping it to the cloud,
parsing it with artificial intelligence, and using the results to
make those factories more productive, less costly to operate,
and more reliable.
The goal is to break data out
of its silosthe machine, the
factory floor, the shipping and
logistics systemand pool it in
a way allows for real-time decision-making.
Here are examples of what
this revolution can accomplish: deciphering how ambient
air temperature affects productivity of an entire factory. Or
ramping up and down production in a way that is more responsive to sales. Or preventing
unplanned downtime, as when a
single critical machine breaks
unexpectedly, which can be incredibly costly because it can
hold up an enormous production line stretching from raw
materials to finished goods.
Weve seen this preventive
maintenance pioneered in jet
planes and even our cars, where
sensors plus software can determine in advance when a part
will fail and alert operators to
pre-emptively replace it.
Id thought, based on all the
industry chatter about the industrial internet, that we were
pretty far along in this process.
But that turns out not to be the
case.
Even General Electric Inc.
DUBAIEmirati businessman Mohamed Alabbar on

Sunday launched an e-commerce business with Saudi
Arabias sovereign-wealth fund
at an initial investment of $1
billion, as he seeks to tap the
Middle Easts small but growing online sales market.
The new venture called
Noon will offer 20 million
productsranging from fashion to electronicsto Middle
Eastern households starting in
January in a bid to create a
homegrown version of e-commerce giants such as Amazon
Inc. and Alibaba Group.
Noon will be based in Riyadh and initially operate from
and focus on the U.A.E. and
Saudi Arabia before expanding
across a region where populations are growing, internet
penetration is expanding and
disposable incomes rising.
We need to turn the whole
digital and e-commerce environment in the Middle East upside down, Mr. Alabbar said.
We owe it to our region; its a
fabulous environment, he said.
The initial investment will be
used to set up the companys
supportive technology such as
payment and delivery channels,
warehouses and staff.
SAMIR HUSSEIN/GETTY IMAGES FOR VOGUE AND THE DUBAI MALL
HONG
KONGFoxconn
Technology Group, the main
manufacturer of Apple Inc. devices, posted an 8.7% decline
in
third-quarter
profit,
weighed down by recently acquired Japanese electronics
maker Sharp Corp.
Losses at Sharp were a drag
on what was otherwise a quarter of brisk sales because of
production of the iPhone 7 for
Apple, Foxconns largest customer.
Foxconn, which formally is
known as Hon Hai Precision
Industry Co., said on Friday
its profit fell to $34.6 billion
New Taiwanese dollars ($1.09
billion), but it still beat the
NT$33.3 billion average estimate of nine analysts polled
by Capital IQ.
Revenue rose to NT$1.075
trillion from NT$1.066 trillion
a year earlier.
Foxconn completed its $3.8
billion acquisition of Sharp in
August after years of tumultuous negotiations and last-minute hitches that almost derailed the deal.
Sharps advanced flatscreen panel business fits
into Foxconns strategy to expand into high-end componentsa more lucrative business than electronics assembly.
Foxconn, the worlds biggest electronics assembler, has
said it would help Sharp speed
its efforts to mass-produce organic light-emitting diode, or
OLED, displays, a technology
that holds promise for nextgeneration gadgets with flexible screens. Apple is considering adopting this technology
for iPhones as early as next
year, The Wall Street Journal
has reported.
But Sharps new chief executive, Tai Jeng-wu, said recently that he hasnt yet decided if his company would
commit fully to OLED or stick
with more widely used liquidcrystal displays.
While manufacturing devices for Apple is still Foxconns largest source of revenue, the Taipei-based company
increasingly has diversified
into other high-tech fields
ranging from telecommunications infrastructure to robotics and e-commerce.
Sharp, which remains listed
on the Tokyo Stock Exchange,
last week reported a quarterly
net loss of 17.9 billion ($170.8
million) but said it would return to profitability by the end
of the fiscal year, which
ends March 31.
BY NICOLAS PARASIE
Mohamed Alabbar wants to tap into the regions online sales market with a venture called Noon.
Mr. Alabbar himself and
several other Gulf-based investors are jointly contributing
$500 million to the company,
while the rest of the equity
comes from the Public Investment Fund, the Saudi sovereign-wealth fund that stands
at the heart of the oil ex-
porters economic reform

plans. In a separate deal, the
PIF last month said it was
teaming up with Japans SoftBank to set up a $100 billion
technology investment fund.
E-commerce in the Persian
Gulf region is still in its infancy
stage. Consultancy A.T. Kearney
estimated its size to be about

$5.3 billion in 2015, contributing
a mere 0.4% to the regions
gross domestic product, small
compared with more mature
markets. But it also said the region is on the verge of becoming the fastest-growing e-commerce market in the world.
Noon will be competing

with Souq.com, another Middle Eastern online retailer
which earlier this year raised
$275 million in funding from a
group of international investors, including $50 million
from Standard Chartereds private equity arm.
Mr. Alabbar is chairman of
Dubais flagship developer
Emaar Properties, the company behind the worlds tallest
tower, the Burj Khalifa, and
Dubai Mall, the worlds busiest
shopping center. Emaar also
just commenced work on a
tower that will exceed the Burj
Khalifa in height and has plans
for an even bigger mall to be
built in the emirate.
Mr. Alabbar said he met with
Jeff Bezos, Amazons chairman,
over the weekend in Dubai, both
to share information and experiences about the region. Mr. Bezoss Amazon isnt part of the
new Noon venture.
These people are the people of tomorrow; I admire
them, said Mr. Alabbar of Mr.
Bezos.
Asked whether an online retailer wouldnt mean more
competition for the Emaar
malls business, Mr. Alabbar
said: It [online retail] is coming to you anyway. Id rather
be part of it, know it.
Aggressive Spending
LeEco has spent and has pledged to spend billions of dollars to expand in a range of businesses.
LeEco founder Jia Yueting last month in San Francisco.
LEECO
Continued from page B1
dream.
At the end of 2015, he
pledged 85% of his Leshi
sharesnearly a one-third
stakeas collateral for personal credit lines, according to
the companys annual report.
He lent the proceeds to new
ventures such as the smartphone and car makers, the
company says.
LeEco declined to disclose
how much Mr. Jia has raised
this way. Over the years, it
said, Mr. Jia has had an average of about 70% of his holdings in Leshi pledged as collatwhich along with Siemens AG,
International Business Machines Corp., Cisco Systems Inc.
and others has been a major
proponent of the industrial internet in the U.S.has faced
challenges implementing the
new process in its own manufacturing facilities.
Candidly, one of the things
we work on is how we can get
our legacy equipment connected, says Karen Kerr, senior
managing director at GE Ventures. GE has nearly 500 factories, and the companys goal is
to transform 75 of them into
smart, connected factories this
year.
The goal is to break

data out of its silos
and pool it to allow
for real-time
decision making.
Part of the challenge is to
properly use the hardware companies already have. Newer machinery is bristling with sensors
and data ports that are typically
only used when these machines
are being built or repaired, says
Dennis Hodges, chief information officer of Inteva Products
LLC, a major manufacturer of
auto parts. Though the data
from these sensors was never
intended to be used for realtime insight into how a machine
is doing, it turns out that even
indirect measures of a machines health, like its temperature, can be combined with
other data to allow engineers to
understand things about a de-
eral for loans.

Also last year, Mr. Jia sold
over two billion yuan ($293
million) in Leshi shares and
lent the proceeds back to the
video site interest-free.
Leshi shares slid nearly 5%
on Nov. 7, after Mr. Jias letter
confirmed the previous weeks
rumors that the company was
facing a cash crunch. But the
shares steadied for the remainder of the week to close
at 38.38 yuan, or 1.4% higher
than the Nov. 7 closing price,
but still 35% lower than the
start of the year.
A big enough slide could
trigger a margin call, forcing
Mr. Jia either to sell the
shares or back the loan with
more collateral. LeEco device they cant measure directly,
and what to do to keep them
from breaking.
Others are working on ways
to put additional sensors where
they werent previouslyan effort that creates new challenges, like how to power them
all.
Recently I put on a smartwatch on that could be a harbinger of this sensors-everywhere future. The Matrix
PowerWatch, launching this
week, never needs recharging.
Its power source is thermoelectrics, which means that it can
turn any difference in temperaturetypically that between a
solid object and the air around
with itinto electricity. As I
looked at it, a little power bar
slowly grew, until the watch
was generating 200 microwatts
of energy harvested directly
from my body heat. It is a relatively tiny amount of power, but
enough for a smartwatchor
for the sensors and transmitters
deployed in smart factories.
Power sources like this, or
solar panels, or piezoelectrics,
which gets power from vibrations, are key to getting sensors
onto more of our built environment, preventing the cost and
time in changing sensor batteries.
The application of these
technologies to watches and
manufacturing is just the beginning. Civionics customers include a company that monitors
the health of bridges in India,
and a multinational mining giant that needs to put sensors
on its largest and most expensive equipment. The giants in
these fields have taken notice3M Co. is a strategic investor in Matrix, and GE is an
investor in Sight Machines.
DATE ANNOUNCED
TARGET
July 2016
Signed deal to buy U.S. TV brand Vizio
August 2016
Announced plans to build a factory in China to

produce internet-connected electric cars
October 2015
Acquired 70% of ride-sharing rm Yidao
June 2015/
June 2016
Acquired 29% of smartphone maker Coolpad in two

separate acquisitions
Bought exclusive new-media broadcasting rights on
China Super League games in 2016-2017
Acquired 20% of TV maker TCL Multimedia
Technology Holdings
Bought exclusive broadcasting rights for the
English Premium League in Hong Kong 2016-2019
Bought media rights of all games in mainland China
under the Asian Football Confederation 2017-2020
February 2016
May 2016
September 2015
October 2015
VALUE
$2 billion
$1.8 billion
$700 million
$450 million
$398 million
$280 million
$200 million
$110 million
Source: staff and news reports
clined to comment, having

said in May that the financial
arrangement of the pledged
shares is very safe and that it
has contingency plans.
Also on Nov. 7, shares of
Hong Kong-listed smartphone
maker Coolpad Group Ltd., of
which Mr. Jia is chairman, fell
as much as 25% to their lowest
level since February 2013 after
Mr. Jias letter caused concerns about LeEcos solvency.
Coolpad prices were down a
further 5% on Friday. Coolpad
declined to comment.
Mr. Jia and other top executives held a Leshi shareholders meeting on Wednesday to
make the case that the resource-draining risk of LeEcos
global expansion plan is one
worth taking.
Founded in 2004 in Beijing,
LeEco was little-known until a
share-price rally early last
year made Leshi one of the
most valuable tech stocks
listed in China.
Mr. Jias dream of building
a hardware-content ecosystemhis premise is that by offering hardware at a low price,
or even free, he can get consumers to pay to subscribe to
contentstarted to get attention.
LeEco has raised at least
$3.15 billion for new businesses in the past couple of
years, according to company
announcements, while Mr. Jia
has spent or pledged to spend
more than $5 billion on deals.
With 5,000 new employees

added just this year, the companys high-rise headquarters
on Beijings east side is bulging, with some staff members
even having to share desks.
Mr. Jia makes no secret of
the perpetual capital shortage.
A former executive who left in
the summer said he had gone
on deal negotiations in the
U.S. without knowing whether
there would be funding.
Mr. Jias letter to employees included a rhetorical question: Would the company be
devoured by the giant waves
of the cash shortage or would
it boil the ocean with the
fire of his strategy. His answer: Well be progressing in
disruption and pain.
BUSINESS WATCH
CROWN RESORTS
China Releases One

Detained Employee
One of the employees of Australian casino operator Crown
Resorts Ltd. who was detained
in China last month has been released, the latest development in
a case that has cast a pall over
the global gaming industry.
A person familiar with the
matter said Saturday one of
Crowns junior employees, a Chinese national, was released on
bail. There was no further information on the other employees
who were detained, which included three Australians. Among
them was Jason OConnor, a senior executive.
China detained 18 Crown employees last month as part of an
investigation into gambling
sold a much bigger investment in

the Australian oil and gas producer to a unit of Chinese natural-gas distributor ENN Group Co.
Santos on Friday said Chinas
Hony bought an additional 40
million shares, or about 2.25% of
its issued capital, to increase its
interest to about 3.2%.
Hony, which has a record of
strategic acquisitions that have
helped Chinese companies expand overseas, was a cornerstone investor in Santoss 2.5 billion Australian dollar (US$1.9
billion) rights issue last year.
Robb M. Stewart
crimes, authorities said at the

time.
The surprise move sparked
concerns that Chinese VIPs
would be more hesitant to travel
to casinos in Australia and elsewhere abroad, leading to lower
revenue for casino operators.
Gambling is illegal in China
and foreign companies arent allowed to directly advertise their
casinos, however they can promote tourism to their resorts in
general.
Mike Cherney
HONY CAPITAL
Private-Equity Firm
JAPAN DISPLAY
Buys Stake in Santos Company Is in
Private-equity firm Hony Capi- Talks Over Bailout
tal has again picked up a stake in

Santos Ltd., buying shares
roughly eight months after it
AARON BUNCH/REUTERS
BY LIZA LIN
AND EVA DOU
Mideast E-Commerce Venture Launched
ALISON YIN/ASSOCIATED PRESS FOR LEECO
Losses at
Sharp Are
A Drag on
Foxconn
WSJ.com/Tech
A Crown Resorts hotel and casino in Western Australia. China

detained 18 Crown employees last month as part of a probe.
www.ebook3000.com
Apple Inc. supplier Japan Display Inc. is in advanced talks for

a bailout of about 75 billion, or
around $703 million, from a government-backed fund that is its
largest shareholder, people familiar with the matter said.
The plan under discussion calls
for Japan Display to receive new
financing from Innovation Network Corp. of Japan, the government-backed fund that holds 36%
of the display maker, the people
said. Among the options under
study is issuance of subordinated
bonds by Japan Display to INCJ.
Japan Displays banks also are
considering additional support for
the company, they said.
People briefed on the talks
cautioned that no final decision
has been made and that the details of the support package
might change.
Takashi Mochizuki
and Atsuko Fukase
JOURNAL REPORT | BIG ISSUES
Is Nuclear Power Vital to Hitting Emissions Targets?
YES
Renewables Cant Fill

The Gap Yet
BY SUSAN TIERNEY
IM ALL FOR making smart
investments in energy efficiency and renewable energy. We should be aiming
to reduce carbon emissions
and limit the worst effects
of climate change.
At the same time, we
need to keep electricity affordable and accessible to regular folks and sophisticated energy
managers alike. That means nuclear power is
an essential piece of the equation, at least for
now. We need to retain the carbon-free power
produced at existing nuclear plants for as long
as they can safely operate.
A heavy load
In the near term, existing nuclear plants
are vital to hitting our carbon-reduction targets. We need them to help transition the
power system to a lower-carbon profile. And
getting it right economically is essential to
many peoples willingness to pull carbon out
of the system.
Consider: Todays nuclear plants provide
one-fifth of our power but nearly two-thirds
of carbon-free electricity. Yes, the costs of
wind and solar are dropping dramatically.
Thats great news. But for now, they provide
just 5% of our power supply. And scaling up
their market share takes time. Retaining existing nuclear power is good for consumers. A
nuclear plant operates around the clock, and
wind and solar only operate when the wind is
blowing and the sun is shining. In 2015, one
megawatt of wind capacity produced power
32% of the time, one megawatt of solar produced power 29% of the time.
In the long term, of course, the current
fleet of nuclear plants will eventually retire
and needs to be replaced by electric resources
that dont contribute to climate change. But
in the near term, any time a nuclear unit retires, its output is replaced by plants that
burn fossil fuel. Thats the reality we face.
power by 2022. (China is a notable exception,

with 20 reactors under construction.)
Market conditions heavily favor cheaper
fuels such as natural gas over nuclear. And
the regulatory climate favors other sources
of energy. In the U.S., the Obama administration introduced rules requiring power
plants to cut CO2 emissions 32% from 2005
Its also important to remember that nuclear retirements differ from other generatingunit retirements: Unlike other kinds of traditional power plants, nuclear plants cannot
practically be mothballed and then brought
back on line if need be, because of the huge
costs incurred even in a temporary shutdown.
This means that once a unit is retired, its electric-system benefits go away for good. With
this in mind, keeping a plant in operation provides important insurance to help keep us on
course to reduce carbon emissions.
And there are potentially benefits to nuclear in the long termif we continue investing in nuclear and figuring out how to design
advanced technologies to bring down their
construction and operating costs, bring them
to markets in much shorter time frames, and
address the core safety and waste-management problems of this fuel.
Its too soon to know that we can do that,
and its also too soon to throw out them out of
the running. We need to keep our options as
robust as possible if we want to address climate change both urgently and cost-effectively. Weve got our work cut out for us, even
with existing nuclear plants as part of our
near-term mix.
Dr. Tierney is a senior adviser at the
Analysis Group, an economic, financial
and strategic consulting firm. She can be
reached at reports@wsj.com.
Nuclear advocates have always faced a

tough reality. Questions of safety aside, the
costs of licensing, maintaining and running a
nuclear-power plant and properly disposing of
the waste are becoming increasingly impossible to manage.
NO
Nuclear Isnt Clean

Or Cheap
Rising costs
BY MICHAEL DORSEY
A RIDICULOUSLY expensive way to boil water!
Thats what a good
friend always remarked
when asked what he
thought about nuclear
power.
In October 2016, the
world experienced an unprecedented historical
milestone. For the first time in history, the International Energy Agency confirmed that in
the previous year renewable energy, largely
from solar and wind, became the biggest
source of new global electricity capacity, surpassing coal. This achievement received headline attention.
In fact, solar and wind alone already have
more energy-generation capacity than nuclear
power. By the end of 2015, the world-wide capacity of wind-power generation all by itself
reached 432 gigawatts, while global nuclearpower-generation capacity was only 383 gigawatts.
Financial straits
Given all that, allowing existing nuclear
plants to close would be a disaster. Nuclear
plants output helps to keep electricity prices
lower than they would otherwise be, and premature loss of safely operating nuclear plants
would leave the nations electric-resource mix
much less diverse, with much higher costs and
much higher carbon emissions. To repeat: I,
too, want to see the nations power sector reduce its carbon footprint, rather than increase
it because existing nuclear units are closing.
Were already probably facing big increases
in power costs due to market forces and infrastructure needs. Several nuclear plants are
scheduled to retire, and many other of the nations 100 reactorsincluding some of the nations best-performing plantsare financially
challenged.
Thats happening in large part due to the
effect of historically low natural-gas prices on
revenue in wholesale power markets. Whats
more, most of those power markets dont
compensate nuclear units for their carbon-free
generation. Companies that generate nuclear
power dont get credit for producing carbonfree electricity, the way they do for using renewables. And utilities that buy the power
dont get rewarded for buying that electricity.
Meanwhile, fears about catastrophic nuclear accidents and unresolved questions

about waste storage linger.
With all that, some experts say nuclear
plants are the best way to transition to a lowcarbon future until the price of renewable energy drops further. But others say the plants
are too risky and costly to keep in operation.
levels by 2030, though President-elect Donald Trump says he will drop that rule. While
nuclear plants dont generate CO2, companies can tap federal tax credits for investing
in renewables. Whats more, power companies can sell renewable electricity at higher
prices because utilities need wind and solar
supply to comply with state rules.
GEORGIA POWER COMPANY
Nuclear power is fizzling.

In recent years, many countries have
largely stopped building new nuclear plants
and are looking elsewhere for power. In the
wake of the Fukushima disaster in 2011,
Japan shut down all its nuclear reactors,
though a few have restarted since last year.
Germany also moved to phase out nuclear
New nuclear power plants are rare due to market conditions and rules favoring renewable sources.
Carbon Impact
Power Supply
Life-cycle greenhouse-gas emissions by power

source, in grams of CO2 equivalent per kilowatthour generated. Nuclear is one of the lowest.
Hydropower 7
Wind 12
Nuclear 16
Concentrated solar
26
Geothermal
40
Biopower
43
Solar photovoltaic
54
Note: Figures are

medians of multiple
published estimates for
each power source.
Conventional
natural gas
Unconventional
natural gas
Coal
475
2006
U.S. electricity generation
by source, 2006 vs. 2015.
As coal use has plunged,
natural gas and renewables
have risen; nuclear has
49%
been almost at.
Coal
Natural gas
Nuclear
Hydropower
Wind, solar,
other renewables
Petroleum
Other
20%
20%
19%
1,001
Source: National Renewable Energy Laboratory
33%
33%
7%
493
2015
2%
2%
1%
6%
7%
1%
1%
Source: Energy Information Administration
About a quarter of U.S. reactors have underwater operating expenses. They are cost-ineffective and noncompetitive at current electricity-generation rates. Upside-down nuclear
finances are worsened as the prices of solarand wind-energy generation continue to fall.
From California to New York and at many
points in between, like Illinois and Nebraska,
nuclear plants have been closed, are closing or
are scheduled to close. The Nuclear Energy Institute, the industrys leading trade association, has forecast that possibly an additional 15
to 20 nuclear plants are at risk of a premature
shutdown in the next decade due to financial
troubles.
The U.S. Nuclear Regulatory Commission is
currently overseeing the decommissioning of
19 closed nuclear reactors across the country.
Some countriesBelgium, Germany, Spain and
Switzerlandhave announced that they are
phasing out nuclear power entirely.
Some critics argue that closing nuclear
plants will increase the amount of fossil-fuel
use, and, by extension, the amount of greenhouse gases that are then released into the atmosphere.
But the only way that fossil-fuel power generation goes up is if those plants increase their
output. The reality is that every efficient
power plant already operates at its maximum
output. And when energy companies make
their big investments these days, they are
moving in two dominant directions: building
new renewable capacity and making their inefficient fossil-fuel plants efficientthey arent
building new, dirty plants. There arent huge
amounts of new carbon that are about to come
on line if we close down nuclear plants.
Some also say renewables are costly and
take too long to get up to speed, so we need
nuclear in the meantime. First, nuclear plants
are retired over yearssometimes it can take
almost a decade. Meanwhile, the price of solar
took just five years to drop almost 70%, and it
continues to fall at record rates. Renewables
are now vastly cheaper than nuclear power,
and the price will continue to fall.
Not clean
Finally, theres one big falsehood at the core
of arguments for nuclear: that its clean. The
full life cycle of nuclear powerfrom mining,
milling, the separation of the uranium from
the ore, to ultimate plant decommissioning
collectively generates vast amounts of carbon
dioxide.
To put it another way: Nuclear reactors are
only carbon-free when they are created out of
thin air, like something in a Bugs Bunny cartoon. And they bring many other environmental costs beyond carbon, such as the disposal
of their waste, When we account for the full
environmental cost of nuclear plants over their
lifetime, they do not make fiscal sense.
Continuing advancements, steadily falling
prices and economies of scale are rapidly accelerating the spread of renewables. Spending
time and resources on 20th-century nuclear
power plants is folly.
Focusing efforts on a cleaner, renewable energy future is a triple win: for the environment, the economy and public health.
Dr. Dorsey is a director on the Sierra
Club National Board and full member of
the Club of Rome. He can be reached at
reports@wsj.com.
sulted a panel of experts: Jason Bordoff, professor of professional

practice
in
For two years, the Organi- international and public afzation of the Petroleum Ex- fairs and founding director,
porting
Countries
Center on Global Enhas appeared powerergy Policy, at Coless to stop a slide in
lumbia University;
prices that has punHelima Croft, head of
ished the economies
commodity strategy,
of
oil-dependent
RBC Capital Markets;
members, including
and Bassam Fattouh,
Saudi Arabia. Such a
director of the Oxford
state of affairs calls
Institute for Energy
into
question Jason Bordoff
Studies.
whether the onceHere are edited expowerful cartel is
cerpts.
still a relevant force
Still relevant
in todays market.
WSJ: Is OPEC still relThe group reasevant?
serted itself in SepMR. BORDOFF: In
tember in Algiers,
some ways, OPEC is
saying its members
still relevant. It is a
agreed to cut pro- Helima Croft
very large source of
duction. Details are
current and future
to be ironed out in
supply and can still
Vienna on Nov. 30.
affect the market
But doubts remain as
physically and psyto the likelihood of a
chologically.
Even
meaningful accord.
with strong growth
To explore OPECs
in U.S. tight oil, OPEC
ability to act effecsupply will be needed
tively, The Wall Bassam
in the medium term
Street Journal con- Fattouh
BY ELENA CHERNEY
to meet growth in global oil

demand.
The recent agreement in Algiers reminds us that the potential for OPEC market management still exists. And OPEC
remains relevant because of its
ability to affect market sentiment, discourage short sellers
and change risk perceptions.
But its relevance is a far cry
from the public perceptions of
OPEC as a dominant cartel.
Real market management
would require OPEC to be willing to cut production millions
of barrels a day, as the Saudis
did in the 1980s when they
slashed output by more than
75% from over 10 million barrels a day. That is not likely.
Effective market management would also require the
ability to quickly put additional
supplies onto the market to offset price spikes from unexpected supply or demand
shocks. Yet OPEC spare capacity, largely held by Saudi Arabia, is at historically low levels,
so that buffer doesnt exist.
MS. CROFT: I think of 2016 as
the year OPEC became relevant
again for the market. After
ASSOCIATED PRESS
Is OPEC Still Relevant in Energy Markets?
Qatars oil minister after an OPEC meeting in 1983, when the groups power was at a peak.
OPEC took a pass on pulling
barrels to defend prices in November 2014, many market participants completely wrote off
the organization as irredeemably obsolete. It was seen as too
riddled by internal divisions
and conflicting agendas to be
able to forge any type of consensus on market-management
measures, and admittedly still is

seen that way by some market
participants. The Iranian-Saudi
regional rivalry in particular
was continuously cited as an intractable obstacle to an output
agreement.
A number of oil watchers believed Saudi Arabia was so
committed to crushing U.S.
shale producers and so financially strong that the leadership

wouldn't flinch even if prices
dropped to the single digits.
Sentiment began to shift
when some of the key OPEC
players and Russia started
talking up the prospects of an
output freeze and the need for
Please see OPEC page B5
JOURNAL REPORT | BIG ISSUES
OPEC

higher prices. The very public
freeze discussions helped kickstart the rally in the first
quarter, after prices plunged
into the 20s.
On multiple occasions,
OPEC rhetorically intervened
when the oil market was
caught in a bear trap and
sparked a rally by signaling a
willingness to take assertive
action. We saw it this August,
when the products-driven selloff pushed prices below $40
and OPEC came out with the
announcement of the special
meeting in Algiers.
Even with the continued
skepticism, OPEC has largely
put in something of a psychological floor in the run-up to its
Nov. 30 meeting in Vienna and
has demonstrated that the multiple pronouncements of the organizations demise were premature.
MR. FATTOUH: By signaling a
shift [earlier this year] from
pure market-share strategy toward cooperation, OPEC did
influence market outcomes by
shifting market sentiment and
squeezing many of the shorts
out and providing support to
the oil price, even though
there has been no impact on
physical balances so far.
OPEC reasserted
itself recently by
agreeing to cut
output, but it left
the details to be
ironed out later.
An agreement to cut output
in November will have a key
impact on balances and will
help speed the rebalancing
process, especially because
OPEC has been the main contributor to supply growth.
Eyes on Vienna
WSJ: Is it realistic to think that
OPEC members can turn their

Algiers consensus into a deal
on Nov. 30?
MR. BORDOFF: It remains to be
seen whether OPEC really has
the ability or willingness to
curtail supply. Several countries
are already exempted from the
deal, and there exists deep mistrust within OPEC today, exacerbated by Saudi-Iran tensions,
as well as the lack of member
adherence to the last cut in December 2008 in Algeria.
It is also by no means clear
that Russia will join the deal
and, even if so, from what
level it might agree to freeze
or cut output given that its
September production surged
to a record high. President
Vladimir Putin has pledged his
support for a coordinated cut,
although Rosneft CEO Igor
Sechin has opposed it.
MR. FATTOUH: Assigning quotas for individual countries
has proved to be difficult, and
this time is no different. There
are countries like Iran and
Iraq, which have ambitious
plans to increase their productive capacity and believe that
other countries have taken
their market share over the
years. Bringing these countries back within the quota
system will prove to be the
most challenging.
Second, there are countries
like the U.A.E. and Kuwait that
have already embarked on expansion plans, but perhaps
will be more amenable to participate in modest cuts if this
is led by Saudi Arabia. Third,
there are countries like Nigeria and Libya that have been
suffering from output disruptions, but now they are seeing
some recovery in their output
and they are demanding special treatment.
Outside OPEC, the signals
from Russia about cooperating
on an output freeze or cuts
have been conflicting so far,
and in the past Russia didn't
abide by its output agreements with OPEC. Without
collective effort, Saudi Arabia
won't act on its own, and
without Saudi Arabia being on
board, there is no chance for a
meaningful OPEC agreement.
Modest prospects
WSJ: Do these tensions mean
that any deal isn't likely to be

meaningful?
MR. BORDOFF: Even if the
strongest version of the Algiers
agreement were actually implemented, the price support
would be meaningful but still
modest relative to the magnitude of the price collapse.
There seems to be no prospect
of much deeper cuts that would
be needed to return prices to
their previous levels.

OPECs ability to truly stabilize the market, as it did in
the 1980s with deep Saudi
production cuts, is further
constrained by the emergence
of short-cycle U.S. shale-oil
supply.
The sort of intervention being contemplated in Algiers is
quite different from longstanding public perceptions of
OPEC as a market stabilizer or
cartel. OPEC has shown it can
react in modest ways to market emergencies, not act as a
true swing supplieras the
Texas Railroad Commission
did after World War II or
OPEC did in its earlier years.
MS. CROFT: I see this as a very
modest interventionputting in
a floor for prices and firming
the case for $50. This is a barebones recovery that provides
only a modicum of relief for the
most cash-strapped sovereign
producers, such as Venezuela,
Iraq and Nigeria. But since these
countries don't drive the OPEC
bus, they will have to make do
with the price that the powerful
players see as optimal for now.
their policies, and would encourage supply growth in other

parts of the world.
OPEC could accelerate its investment pace and increase its
output to put downward pressure on the oil price to induce
a rebound in global demand
and drive out high-cost producers. But such a strategy has a
limited impact in terms of increasing OPEC revenues; the
increase in oil demand or market share won't compensate for
the lower oil price, and hence
OPEC oil revenues will fall in
such a scenario. Given the limited effectiveness of such investment-and-output policy options, OPEC members recognize
that diversifying their economies and income sources is the
only long-term viable option.
Climate change
WSJ: To what degree do you
think climate-change regulation, or the specter of it, is

pushing OPEC members to diversify their economies?
MR. BORDOFF: Even if OPEC
OPEC and the World

Crude oil production in thousand barrels a day. OPEC output has risen 5.5% over the past decade, compared
with 10% for the rest of the world.
50 thousand
OPEC
Rest of world
40
30
20
10
0
2006
2007
2008
*Figures are for rst half of 2016.
2009
2010
2011
2012
Source: Energy Information Administration
leaders don't believe the world

is getting off oil anytime soon,
they recognize the greater possibility that demand for oil
could begin declining far sooner
than expected in response to

climate policy, technological innovations like electric vehicles,
and structural economic shifts
in places like China.
2013
2014
2015
Ms. Cherney is The Wall

Street Journals global
energy editor. She can be
reached at elena.cherney@wsj.com.
Saudis and Iran

WSJ: The consensus on reduc-
ing output couldnt have happened without Saudi Arabia

softening its opposition to any
deal that didnt include Iran.
What led the kingdom to shift
on this issue?
MS. CROFT: The fact the Saudis
essentially gave so much
ground in Algiersbasically
putting no limits on Iranian
outputis a pretty remarkable
volte-face and in our view
speaks to changing internal
dynamics in the kingdom.
However, I think the fact that
Iran is essentially back to presanctions levels and may not
be able to put many more barrels on the market also accounts for this newfound
pragmatism in Saudi oil policy.
MR. FATTOUH: Saudi Arabia is
highly reliant on oil revenues,
and lower oil prices have had
an adverse impact on its
economy despite its relatively
strong fiscal buffers. Low oil
prices are forcing the government to tighten the economy
at a quicker pace than perhaps originally anticipated,
and there is recognition that
although low oil prices have
been conducive to kick-start
reforms, a persistent low-oilprice environment will make
these reforms more difficult
politically and socially. Higher
oil prices, say toward the $60
level, will give the Saudi government some breathing
space.
MR BORDOFF: I would note
comments Minister Khalid alFalih just made in London,
warning that the dramatic
cuts in oil and gas investment
due to the price collapse will
lead to an underinvestment
cycle that could cause prices
to spike sharply in the next
few years. While Saudi Arabia
may not want very low oil
prices, it also recognizes very
high $100-plus oil prices can
curb demand, including by accelerating the shift away from
oil toward electric vehicles
and other alternatives.
Developing countries will consume

65% of global energy by 2040.
The world energy landscape is changing dramatically.
For example, two-thirds of energy-supply investment
is now taking place in emerging economies. This
creates opportunities as well as risks. CME Group
gives producers and suppliers the tools they need
to capture these opportunities while managing risks
in volatile oil and natural gas markets. This is how
the energy industry can deliver in the face of everchanging consumer demand. This is how the world
advances. Learn more at cmegroup.com/fuel.
Peak demand
WSJ: Many analysts are pre-
dicting
that
oil-demand
growth will peak and then decline. What impact would that
have on OPEC?
MS. CROFT: Going forward,
global demand will likely remain steady rather than spectacular or slow. We remain
much more concerned with
peak demand over the coming
years rather than peak-supply
fears of last decade.
The push to reduce global
greenhouse-gas emissions provides an additional headwind
for demand growth, especially
in the developed world. However, what OPEC is hanging its
hopes on is emerging-markets
demand, especially India.
Emerging markets have singlehandedly carried global oil demand growth since the recession. India has been the real
bright spot and will be the primary driver of demand growth
for years to come. Indian gasoline demand is slightly over
500,000 barrels a year, compared with 9 million in the
U.S. and 3 million in China. Vehicle penetration rates are in
the low teens, compared with
75% to 80% in North America
and 30% in Brazil.
MR. FATTOUH: If climate-change
policies result in lower future
oil demand, OPEC options are
more limited. OPEC for instance can decide to cut output
and increase the oil price and
try to capture larger share of
oil rent while it can. High oil
prices, however, increase the
pace of demand reduction, induce government to accelerate
CME Group is a trademark of CME Group Inc. The Globe logo is a trademark of Chicago Mercantile Exchange Inc. All other trademarks are the property of their respective owners.
Copyright 2016 CME Group. All rights reserved.
www.ebook3000.com
2016*
BUSINESS NEWS
in $3.4 Billion
Alibaba Works Sales Magic Toyota
Corrosion Settlement
Singles Day spree
sets record in China,
dwarfing Black Friday,
Cyber Monday in U.S.
BY SARA RANDAZZO
SHENZHENAt midnight
on Thursday, Zhang Ke was
ready. She began clicking furiously on her smartphone, trying to snare one of four pairs
of Adidas striped sneakers on
sale for more than half off.
She didnt land the sneakers. But the 28-year-old Beijing
resident found other ways to
divest herself of 3,000 yuan
($441), nearly a third of her
monthly salary, in 28 minutes,
snatching up clothes from
Zara, Uniqlo and other brands.
These clothes wont go out
of fashion, said Ms. Ke, who
works for a Chinese healthgoods retailer. They are stylish and the quality is good.
As much of the world pondered the implications of a
Donald Trump presidency,
China dived headlong into a
day of unabashed consumerism.
Singles Day was a tonguein-cheek holiday begun by
some Chinese young people in
the 1990s to commemorate the
lonely hearts among them,
with the evocative date 11-11.
Over the past seven years, the
worlds top e-commerce firm,
Alibaba Group Holding Ltd.,
has reached well beyond singles to turn the day into the
worlds biggest shopping festival through savvy marketing
and steep discounts.
Vendors sold some $14.3
billion of goods through Alibabas platforms on the day
last year, dwarfing the numbers seen on the Black Friday
and Cyber Monday shopping
sprees that follow Thanksgiving in the U.S. Alibaba topped
that record at 3:20 p.m. on Friday on its way to a new high.
To kick off this years event,
Alibaba Chairman Jack Ma
used Chinese pop stars, Victorias Secret models and foreign
celebrities including Scarlett
BOBBY YIP/REUTERS
BY EVA DOU
Attendants celebrating in Shenzhen, China, last week during Alibabas Singles Day shopping event.
Alibabas Big Date

The e-commerce colossus set a
new Singles Day sales record.
Alibabas Singles Day gross
merchandising volume
$17.7 billion
$15 billion
10
0
2012 2013 2014 2015 2016
Source: the company
Johansson, Kobe Bryant and

David Beckham to fill a
60,000-person stadium in
Shenzhen. The show was telecast live on video-streaming
websites across China.
As the sale got under way
at 12:01 a.m. Friday, Alibaba
kept a running tally of its sales
on a massive screen at a press
center set up near the stadium.
Critics contend these numbers
are inflated by orders that
never ship or are quickly can-
celed, and Singles Day revenue has now come under scrutiny by regulators in China and
the Security and Exchange
Commission in the U.S., where
Alibaba is publicly traded.
Alibaba President Michael
Evans said on Friday the company is confident in its numbers, which are independently
audited. He said Alibaba is cooperating with the SEC.
Chinese shoppers are the
bright spot in the countrys
slowing economy and they will
increasingly spend overseas.
The Economist Intelligence
Unit forecast that Chinese private consumption will average
5.5% annual growth from this
year through 2030, outpacing
the overall economy.
Affluent consumers are
Chinas fastest-growing group,
with the number of households
earning more than 136,000
yuan a year expected to jump
from 82 million last year to
137 million by 2020, according
to researcher Gavekal Dragonomics. They are eager to
spend on luxuries like health
and fitness goods, international tourism and sport-utility vehicles.
Ms. Zhang is one of the millions of Chinas newly minted
affluent consumers, and she
took her job seriously. Starting
The inaugural Singapore FinTech Festival will bring together leaders from
the global financial community and key players in the FinTech ecosystem to
explore cutting-edge innovations that are transforming financial services.
Comprising a series of exciting events spanning one full week, the specially
curated conferences and networking platforms will offer a unique
opportunity for participants to build relationships, share knowledge, and
develop new business collaborations across the FinTech value chain.
Insights from leading industry experts and leaders

Innovation Lab Crawl (14 Nov)
Visit leading innovation labs across the island and experience first hand
their innovative solutions and get a glimpse into the future.
Global Fintech Hackcelerator (15 Nov)
Top 20 teams will be featured out of the 650 submissions received from over
50 countries to solve 100 problem statements covering 10 broad topics.
2-Day Fintech Conference (16 - 17 Nov)
Multi-format conference with experts and industry leaders, looking at what
tomorrow will bring in API, Blockchain, data analytics, mobile payments and more.
ABS-MAS Tech Risk Conference (17 Nov)
The 4th run of this annual tech risk conference will seek to discuss issues such as
behavioural analytics, cyber security, continuous authentication and online fraud.
ABS-MAS RegTech Forum (18 Nov)
First RegTech conference in Asia, tapping on the enormous potential for
RegTech to enhance competitiveness and efficiency in the financial sector.
REGISTER NOW AT fintechfestival.sg
@sgntechfest
Festival sponsors:
An event by
In partnership with
weeks ago, Ms. Zhang would

spend her lunch break at the
mall, trying on blouses and
sweaters and cross-checking
them against listings of Singles Day sales. She identified
a brand of French baby formula, Aptamil, and a yellow
Zara mini windbreakergifts
for her niece and nephew
that would be on sale on Singles Day.
When I was a child, we
would just buy all our clothes
from the local store, she said.
I didnt start looking closely
at brands until the last few
years.
Beijing resident Zou Xuanmo, 28, said she hunted for
deals so thoroughly and systematically on Singles Day last
year that she cant participate
this time around.
I stockpiled so much boxed
tissue, toothbrushes, toothpaste, she said. Im still using it a year later.
Singles Day poses something of a quandary for Chinas
government, which welcomes
the economic boost but looks
askance at rampant materialism. The Peoples Daily cautioned cadres ahead of time
against lavish spending on designer watches and purses,
and warned any use of public
funds was strictly forbidden.
Toyota Motor Corp. has

agreed to pay up to about $3.4
billion to settle claims that certain of its trucks and sport-utility vehicles lacked proper rust
protection, leading to premature corrosion of vehicle frames.
The agreement is a substantial financial setback at a
time when the Japanese auto
giants record-breaking profit
streak has slowed as a strong
yen dents its performance.
The company also is part of a
broader group of auto makers
facing plateauing retail sales
in the profitable U.S. market.
The deal, filed in U.S. District Court in Los Angeles this
month, settles litigation in Arkansas and California over
problems with Toyota Tacoma
trucks from model years 2005
to 2010, Tundras from 2007 to
2008 and Sequoias from 2005
to 2008. About 1.5 million vehicles in the U.S. are covered
by the deal, court filings show.
The agreement represents a
significant settlement for the
auto industry and follows several costly accords auto makers have forged in recent years
to address quality, safety or
emissions issues in vehicles.
General Motors Co. recalled
millions of vehicles in 2014 and
spent billions of dollars to ad-
dress ignition-switch problems

linked to 124 deaths; Volkswagen AG forged a $14.7 billion
deal to settle with U.S. drivers of
diesel-powered cars affected by
an emissions-cheating scheme.
Several auto makers continue to work with Takata Corp.
to repair tens of millions of air
bags in the largest automotive
safety campaign in history.
We want our customers to
have a great ownership experience, so we are pleased to resolve this litigation in a way
that benefits them, Toyota said.
The settlement was reported
earlier by The Detroit News.
Toyota and plaintiffs lawyers
said the deal, which is still subject to court approval. As part of
the agreement, Toyota wont admit to any wrongdoing.
Once approved, consumers
would be entitled to an inspection of their vehicles and ultimately replacement of their
cars frame if it is found to
have the faulty rust protection.
Car owners who have replaced
their frames also would be reimbursed. Court documents
peg the cost of inspection to
Toyota at $90 a vehicle and
$15,000 to replace each frame.
Attorneys for consumers
called the settlement a complete and total success.
John D. Stoll
SAIC to Sell Audis in China

SHANGHAISAIC Motor
Corp. has struck an agreement
that paves the way for it to build
and sell Audi AG vehicles in the
country, people familiar with
the deal said, as the German car
maker seeks to strengthen its
position at the top of Chinas
luxury-vehicle market.
Audi and SAIC likely would
set up a joint venture to sell
Audi cars. SAIC Volkswagen
Co.a joint venture between
SAIC and Audi parent Volkswagen AGwould manufacture the Audis, the people said.
The new deal with the
Shanghai-based SAIC underlines Volkswagen and Audis

frustration with Chinas FAW
Group Corp., which has been
embroiled in a series of corruption scandals in the past
two years, including the
ouster of the former chairman.
Volkswagen and Audi declined to comment Saturday,
while officials at SAIC and
FAW werent available for
comment. SAIC also is a partner of General Motors Co.,
building Buick, Chevrolet and
Cadillac in China.
Rose Yu
FINANCE & MARKETS

Yak pleads guilty in
Singapore court, gets
sentence of 18 weeks
of imprisonment
BY JAKE MAXWELL WATTS
AND P.R. VENKAT
SINGAPOREA Singapore
court Friday sentenced a key
suspect in a continuing probe
into alleged misappropriation
at Malaysian state fund 1MDB,
in the first conviction of a person linked to the alleged multibillion-dollar fraud.
Yak Yew Chee, 57 years old,
the banker in charge of managing the relationship with
1MDB at the Singapore branch
of Swiss bank BSI SA, on Friday pleaded guilty to two
charges of forgery and two
charges of failing to report
suspicious transactions related
to dealings with the fund. He
was sentenced to 18 weeks of
imprisonment and a fine of
24,000 Singapore dollars, or
about US$17,000, and agreed
to surrender S$7.5 million in
salary and bonuses previously
frozen by investigators.
The conviction marks a

milestone in the investigation
of what happened at 1MDB, or
1Malaysia Development Bhd., a
fund set up by Malaysian
Prime Minister Najib Razak in
2009 that raised as much as
US$13 billionwith a public
mandate to promote the countrys economic development.
Investigators in at least five
countries are probing 1MDBs
finances in response to allegations that billions of dollars
have gone missing. Swiss investigators say they believe
that as much as US$4 billion
was misappropriated from the
fund through several banks,
including BSI. The U.S. Department of Justice has launched a
civil case to seize assets connected to the case.
1MDB and Mr. Najib have
denied any wrongdoing and
pledged cooperation with any
lawful investigation. The Malaysian attorney general has
said the prime minister acted
legally.
Malaysian authorities, however, have declined to cooperate with Singapores probe of
1MDBs finances, according to
people familiar with the mat-
ROSLAN RAHMAN/AGENCE FRANCE-PRESSE/GETTY IMAGES
Ex-BSI Banker Convicted in 1MDB Case
Yak Yew Chee, right, arrives at Singapore court with his lawyer.
ter. On Friday, Switzerlands
Office of the Attorney General
also said that Malaysia has refused to help Swiss investigators looking into the alleged
misappropriation.
Mr. Yaks criminal conviction in Singapore stands in
contrast to Malaysia, which
hasnt charged anyone as a result of its investigations.
The sentencing is also a key
step for Singapore, which is
trying to rebuild a reputation
that the city-states central-
bank managing director has

admitted was damaged by its
association with 1MDBs alleged fraud. Prosecutors in
Singapore have said the funds
transactions are part of the
largest
money-laundering
probe they have ever conducted.
It is imperative that the
public confidence in the integrity of Singapores banking
and financial industry is zealously protected, Jennifer Marie, the judge presiding over
Mr. Yaks sentencing, said Friday. Mr. Yaks role at BSI was
to find new clients for the
bank and act as liaison between them and the banks
wealth-management
staff,
which implemented instructions on a clients behalfa
job for which Mr. Yak earned
as much as S$27 million in
salary and bonuses between
2011 and 2014, according to
Singapore court documents.
Mr. Yak was BSIs relationship manager for 1MDB and
Malaysian financier Low Taek
Jho, prosecutors said. Singapore investigators have called
Mr. Low, known as Jho Low, a
key person of interest in
their investigation into the alleged 1MDB misappropriation.
Mr. Low had pressured Mr.
Yak to rush transactions
through BSI bank without full
due diligence to verify their
authenticity, Mr. Yaks lawyer,
Lee Teck Leng, said in submissions to the court.
Mr. Low had declined to
provide further explanation
for certain transactions on the
grounds that the deals were
government-to-government
and hence, state secret, the
lawyer said. He noted that Mr.

Yak was motivated by a desire
to please Mr. Low, who Mr.
Yak called the most important
customer at BSI.
Mr. Yaks lawyer said in his
submissions that his client had
no grounds to believe during
his employment at BSI that
Mr. Low was involved in allegedly criminal conduct and that
BSIs top management was always prepared to act on [Mr.]
Lows requests.
Mr. Low couldnt be
reached for comment. He has
previously denied any wrongdoing in his dealings related to
1MDB. BSI has said it is cooperating fully with authorities
and has improved its antimoney-laundering controls.
Mr. Yak is one of three former employees at BSI who
have been charged in Singapore with various offenses related to 1MDB funds.
In a neighboring courtroom
Friday, the trial continued of
Mr. Yaks former colleague,
wealth planner Yeo Jiawei, 33,
who faces four charges of attempting to pervert the course
of justice. Mr. Yeo is fighting
all the charges against him.
For Pearls, a Shift in Sales Culture U.S. Infrastructure
Spending Gears Up
BY VERA SPROTHEN
BY HEATHER GILLERS
Pearl farmer James Brown recently began to bypass wholesalers, targeting wealthy buyers directly.
a strand of 23 Australian
South Sea pearls sold for a record $2.3 million at Sothebys
in New York. By comparison, a
necklace of 55 Chinese freshwater pearls was recently
listed on eBay for $2.79.
At wholesale prices, these
Australian South Sea pearls
can fetch as much as $30,000
each, according to Global Industry Analysts Inc., a U.S.based research firm. They can
reach more than 18 millimeters in diameter, roughly the
size of a dime, and regularly
sell for about three to four
times the price of those from
Indonesia, the worlds biggest
South Sea pearl producer.
The Australian industry has
been beset by crisis in recent
yearsfrom oyster disease to
spiraling production costsas
multinational oil companies
began drilling off the coast
during a long resources boom,
forcing pearl producers to pay
more for deckhands and skippers. Where once more than a
dozen pearl producers dotted
this coastline, today only a
handful remain.
They arent the only ones
struggling. On the Indonesian
island of Lombok, a once-
flourishing market of small,

mostly family-run businesses
operating out of thatched-roof
huts has contracted about sixfold since 2009, according to
the Autore Group, which owns
six South Sea pearl farms in
Indonesia and one in Australia.
High-end pearls have become an increasingly tough
sell. The U.S. was once one of
the biggest markets, but the
financial crisis ravaged demand for luxury jewelryand
it has yet to fully recover.
Meanwhile, China has diluted
the exclusivity of pearls by
swamping retail outlets from
Wal-Mart Inc. to airport boutiques with cheap pearls.
Paspaley, the worlds dominant South Sea pearl producer
by export value, woos V.I.P.
guests with pearl-grading sessions hosted by a master jeweler and discovery tours
complete with champagne.
James Brown, who runs
Cygnet Bay Pearls, a small
Australian producer, recently
began to bypass wholesalers
and target wealthy jewelry
buyers directly.
Mr. Brown has transformed
the family pearl farm into a
Out of a Dive
A long decline in Australias
South Sea pearl industry appears
to have been halted.
Value of pearl exports
A$400 million
300
200
100
0
FY2007
09 11
13 15 16*17
*Estimate Forecast
Note: Fiscal year ends June 30.;
A$100 million = US$77.28 million
Source: Abares
hands-on experience. Vacationers are offered educational boat rides through the
fierce ocean currents that
swirl above the pearl oyster
banks.
In the past, it was all
about volume. That model has
failed, Mr. Brown said.
The Earnings Recession Is Over at Last

BY STEVEN RUSSOLILLO
The earnings recession is
finally over, but that might
not be enough to push the
market higher from here.
With more than 90% of
S&P 500 companies having
reported reAHEAD
sults for the
OF THE
latest quarter,
TAPE
earnings for
the biggest U.S.
companies are
finally growing again.
Third-quarter adjusted
earnings are projected to
increase 2.9% from the
same period a year ago, according to FactSet. That
marks the first year-overyear growth rate after five
consecutive quarters of contractions.
Better times should be
ahead, too, thanks to stabilizing oil prices and the rebounding energy sector. Energy companies such as
Exxon Mobil Corp. and
Valero Energy Corp. should
benefit. And technology titans such as Apple Inc. and
International Business Machines Corp. are expecting
earnings growth will return
in 2017.
But there is a difference
between an earnings recession ending and earnings
growing impressively. A
year ago, analysts were calling for earnings growth of
13.1% for the recently completed quarter. That projection fell sharply and even
turned negative as recently
as September before recently bouncing back into
positive territory.
The further out you go,

the more optimistic analysts tend to be, said John
Butters, senior earnings analyst at FactSet.
There is a difference
between an earnings
recession ending and
earnings growing
impressively.
History might be repeating itself. Earnings growth
this quarter is expected to
improve to 3.5%, followed
by 11.4% and 10.5% in the
first two quarters of 2017.
The earnings-expectation
game will continue, meaning the bar will inevitably

be lowered. But investors
seem to have caught on.
They havent rewarded socalled earnings beats as
much as they used to.
For the third quarter, Mr.
Butters found an S&P 500
companys stock price rose
0.7%, on average, in a fourday span following an earnings report that beat expectations. That is roughly half
the average gain in a comparable time frame over the
past five years. Earnings
misses were punished more
than usual, too.
The reason why could be
because stocks are near records. Even if earnings keep
rising, there is no guarantee
companies will be rewarded
by investors.
www.ebook3000.com
U.S. President-elect Donald

Trump is promising an infrastructure boom once he is
sworn in. In some parts of the
country, a burst of new construction spending by states
and cities is already under
way.
State and local governments around the U.S. have issued $149 billion in bonds for
new infrastructure projects
thus far this year, putting 2016
municipal borrowing on track
to surpass each of the past
five years, according to Thomson Reuters data.
Much of the new bond issuance happened in the second
and third quarters, after a
long stretch of low borrowing.
Total bond issuance, including
refinancing, has reached $388
billion, also a five-year record.
On Tuesday, voters across
the country authorized state
and local governments to borrow another $55.7 billion for
similar projects, according to
Ipreo. It was by far the most
borrowing approved since
2008.
I think theres a lot of momentum, not only at the political level but also by the general public, to start spending
more on infrastructure, said
Dan Heckman, senior fixed-income strategist at U.S. Bank
Wealth Management.
Mr. Trump made a $1 trillion infrastructure investment
over the next decade one of
his first priorities as president, promising in his victory
speech Wednesday to rebuild
our highways, bridges, tunnels, airports, schools, hospitals. The proposal relies on
private financing. Experts and
industry officials say it is unlikely the nations aging infrastructure can be updated without public support.
In the short term, however,
costs could go up for government borrowers. Municipalbond prices have dropped
along with Treasurys in days
after the election, with interest rates for an A-rated 20year general obligation bond
at 3.2% on Thursday, compared with 2.94% on Monday,
according to Thomson Reuters. Analysts cited concerns
that inflation under a Trump
administration could increase
borrowing costs.
In an era where the range
has been pretty tight, thats a

pretty dramatic move in such
a short period of time and he
hasnt even taken office yet,
said Howard Cure, director of
municipal research at Evercore
Wealth Management.
Florida bond finance director Ben Watkins is relieved to
have refinanced more than $1
billion in mostly state general
obligation bonds since June.
His only regret, he said, is that
he didnt also push through a
planned $250 million bond to
improve Floridas turnpike and
another deal to refinance
school construction borrowing. With this change in [municipal bond] rates, I wish I
had been smart enough to go
ahead and sell regardless of
what the market felt like, Mr.
Watkins said.
Long-term borrowing
for new projects by
major U.S. cities hit
a 24-year low in
2014.
Local infrastructure projects have languished for years
as cities and states struggled
to balance their budgets in the
aftermath of the recession.
Long-term borrowing for new
projects by major U.S. cities
hit a 24-year low in 2014, according to an analysis by The
Pew Charitable Trusts.
But with expectations of a
federal rate increase in December, local officials were
eager to get in on historically
low interest rates, many analysts said. Municipalities issued $108 billion in bonds in
the third quarter of this year,
compared with $86 billion in
the third quarter of 2015, according to Thomson Reuters
data. They also asked voters Tuesday to approve nearly
700 ballot measures seeking to
issue bonds and won approval
for more than 70% of them,
according to Ipreo.
Voters in Texas El Paso Independent
School
District approved $668.7 million
in new borrowing in what was
the school systems first successful bond referendum since
2007, said spokeswoman Melissa Martinez.
SETH PERLMAN/ASSOCIATED PRESS
VERA SPROTHEN/THE WALL STREET JOURNAL
BROOME, Western AustraliaExploring one of the

planets most isolated coastlines from the bunk bed of a
working pearl boat, with its
smell of marine diesel and
dead fish, isnt your average
luxury cruise.
But as China has cornered
much of the global market
with mass-produced pearls,
traditional pearl farmers from
Australia to Indonesia are using inventive sales tactics to
stay afloat. They are targeting
ultrawealthy buyers for whom
a highly customized shopping
experience matters almost as
much as the price tag.
Prior to boarding a pearling vessel last year, just before seasonal cyclones howled
through the turquoise waters
off remote northern Australia,
Yang Yang, a 41-year-old
China-born investor, wasnt
even a fan of pearls.
They seemed a bit oldfashioned, she said.
But she recalls how impressed she was with the raw,
insiders view of the work
that goes into cultivating
them, watching as chappedhanded workers wrestled
crates of pearl oysters with
shells the size of dinner plates
from shark-infested waters.
Back on dry land, Ms. Yang
bought an $8,000 pearl necklace.
These
invitation-only
pearl-boat trips, organized by
Australias Paspaley Pearling
Co., are designed to educate
the worlds superrichfrom
Chinese billionaires to Saudi
sheikhsabout the exclusivity of these cherry-size South
Sea gems that can sell for
millions when set in jewelry.
They are among the rarest
pearls on the planet, according to the Gemological Institute of Americalarger,
rounder and more valuable
than any other.
Australia is the last place
in the world where pearls are
cultured in wild oysters, using
mollusks not from hatcheries
but handpicked by divers
from the ocean floor. In 1992
Donald Trump has said he will boost U.S. infrastructure spending.
MARKETS DIGEST
Nikkei 225 Index
STOXX 600 Index
Year-to-date
17374.79 s 30.37, or 0.18%
t 8.72%
52-wk high/low 20012.40 14952.02
High, low, open and close for each
trading day of the past three months. All-time high 38915.87 12/29/89
337.50 t 1.38, or 0.41%

trading day of the past three months.
Data as of Friday, November 11, 2016
S&P 500 Index
Data as of 4 p.m. New York time

Last
2164.45 t 3.03, or 0.14%

trading day of the past three months.
Year-to-date
t 7.74%
52-wk high/low 385.43 303.58
All-time high
414.06 4/15/15
Year ago
Trailing P/E ratio * 23.99 22.70

P/E estimate *
18.05 17.25
Dividend yield
2.17
2.11
All-time high: 2190.15, 08/15/16
* P/E data based on as-reported earnings from Birinyi Associates Inc.
Session high
t
DOWN
Session open
Close
17500
350
2190
17250
345
2170
17000
340
2150
335
2130
UP
Close
Open
Session low
16750
65-day moving average
16500
330
16250
325
2110
2090
Bars measure the point change from session's open

16000
Aug.
Sept.
Oct.
320
Nov.
Aug.
International Stock Indexes

Region/Country Index
Latest
NetChg
2441.45 11.50
1640.05 5.65
849.10 26.53
% chg
Low
0.47
0.34
3.03
2047.44
1491.52
688.52
Americas
Brazil
Canada
Mexico
Chile
DJ Americas
Sao Paulo Bovespa
S&P/TSX Comp
IPC All-Share
Santiago IPSA
520.49 1.14
0.22
59183.51 2017.45 3.30
14555.41 188.84
1.28
44978.25 246.13
0.54
3230.85 49.57
1.51
433.35
37497.48
11843.11
40265.37
2759.77
U.S.
DJIA
Nasdaq Composite
S&P 500
CBOE Volatility
18847.66
5237.11
2164.45
14.17
15660.18
4266.84
1829.08
11.34
0.21
39.78
0.54
28.32
0.14
3.03
0.57 3.87
Stoxx Europe 600

Stoxx Europe 50
France
CAC 40
Germany
DAX
Israel
Tel Aviv
Italy
FTSE MIB
Netherlands AEX
Russia
RTS Index
Spain
IBEX 35
Switzerland Swiss Market
South Africa Johannesburg All Share
Turkey
BIST 100
U.K.
FTSE 100
337.50 1.38
2810.87 14.86
4489.27 41.68
10667.95 37.83
1424.94
16812.37
7.49
445.41 4.60
970.15 23.69
8639.20 117.60
7880.29 48.48
50294.72 1198.28
75174.17 1186.19
6730.43 97.55
Asia-Pacific
Australia
China
Hong Kong
India
Indonesia
Japan
Malaysia
New Zealand
Pakistan
Philippines
Singapore
South Korea
Taiwan
Thailand
1427.20 14.11
0.98
5370.70 41.90
3196.04 24.76
22531.09 308.02
1.35
26818.82 698.86 2.54
5231.97 218.34 4.01
17374.79 30.37
1634.19 18.55
1.12
6697.78 35.94
0.53
42849.12 145.13
6975.09 206.78 2.88
2814.60 19.49
0.69
1984.43 18.17
0.91
8957.76 194.42 2.12
1494.53 19.73
1.30
EMEA
DJ Asia-Pacific TSM
S&P/ASX 200
Shanghai Composite
Hang Seng
S&P BSE Sensex
Jakarta Composite
Nikkei Stock Avg
Kuala Lumpur Composite
S&P/NZX 50
KSE 100
PSEi
Straits Times
Kospi
Weighted
SET
303.58
2566.26
3896.71
8752.87
1382.34
15103.58
382.61
628.41
7645.50
7496.62
46282.02
68567.89
5536.97
0.41
0.53
0.92
0.36
Closed
0.04
1.02
2.38
1.34
0.61
2.33
1.55
1.43
1190.45
4765.30
2655.66
18319.58
22951.83
4374.19
14952.02
1600.92
5933.96
30564.50
6084.28
2532.70
1835.28
7664.01
1224.83
0.79
0.78
0.18
0.34
52-Week Range
Close
High
Coupon
18847.66
5339.52
2190.15
8.2
4.6
5.9
28.14 22.2
385.43 7.7
3293.71 9.3
4957.60 3.2
11382.23 0.7
1576.14 6.8
22717.98 21.5
472.24 0.8
1017.88 28.2
10386.90 9.5
9016.56 10.6
54474.09 0.8
86343.65 4.8
7097.50 7.8
1498.20
5587.40
3651.77
24099.70
29045.28
5472.32
20012.40
1727.99
7571.11
42849.12
8102.30
2960.78
2068.72
9385.65
1552.64
2.7
1.4
9.7
2.8
2.7
13.9
8.7
3.4
5.9
30.6
0.3
2.4
1.2
7.4
16.0
Commodities
20%
Europe
Yen
s
10
Euro
0
10
s WSJ Dollar index
20
2015 2016
Fri
Country/currency
in US$
US$vs,
YTDchg
per US$ (%)
Americas
Argentina peso-a
0.0657 15.2250 17.7
Brazil real
0.2918 3.4268 13.5
Canada dollar
0.7399 1.3515 2.3
Chile peso
0.001507 663.50 6.4
Colombia peso
0.0003227 3098.50 2.4
Ecuador US dollar-f
1
1 unch
Mexico peso-a
0.0479 20.8932 21.5
Peru sol
0.2938 3.4034 0.3
Uruguay peso-e
0.0356 28.110 6.0
Venezuela bolivar 0.100150
9.99 58.4
Asia-Pacific
0.7552 1.3242 3.5
0.1468 6.8109 4.9
Australia dollar
China yuan
Key Rates
Country/currency
Hong Kong dollar
India rupee
Indonesia rupiah
Japan yen
Kazakhstan tenge
Macau pataca
Malaysia ringgit-c
New Zealand dollar
Pakistan rupee
Philippines peso
Singapore dollar
South Korea won
Sri Lanka rupee
Taiwan dollar
Thailand baht
Cur Stock
0.53817%
0.90567
1.26211
1.58789
0.19725%
0.36360
0.60375
0.93610
Euro Libor
One month
Three month
Six month
One year
-0.38243%
-0.33071
-0.21371
-0.07543
-0.14786%
-0.09214
-0.00214
0.07286
Euribor
One month
Three month
Six month
One year
-0.37400%
-0.31200
-0.21000
-0.06900
-0.13700%
-0.08300
-0.01100
0.08200
-0.06814%
-0.06686
0.00386
0.10657
Offer
0.04143%
0.07357
0.12071
0.22614
Bid
0.6000%
0.8500
1.2000
1.5000
Latest
0.5000%
0.7500
1.1000
1.4000
52 wks ago
3.50%
2.70
1.475
5.00
3.25%
2.70
1.475
5.00
0.00%
0.25
0.50
1.50
1.00
0.25
2.25
0.05%
0.50
0.50
2.00
0.75
0.00
2.00
Overnight repurchase rates

U.S.
0.48%
Euro zone
n.a.
0.14%
n.a.
Prime rates
U.S.
Canada
Japan
Hong Kong
Policy rates
ECB
Britain
Switzerland
Australia
U.S. discount
Fed-funds target
Call money
7.7589 0.1
67.6950 2.2
13408 3.1
106.74 11.3
338.67 0.02
7.9910 0.2
4.3901 2.0
1.4031 4.1
104.710 0.2
49.000 4.6
1.4123 0.4
1164.81 0.9
147.72 2.4
31.861 3.2
35.400 1.7
52 wks ago
Libor
One month
Three month
Six month
One year
Eurodollars
One month
Three month
Six month
One year
0.1289
0.0148
0.0000746
0.009369
0.002953
0.1251
0.2278
0.7127
0.0096
0.0204
0.7081
0.0008585
0.0067696
0.03139
0.02825
Bulgaria lev
0.5539 1.8053 0.3
Croatia kuna
0.1444 6.927 1.2
Euro zone euro
1.0847 0.9220 0.1
Czech Rep. koruna-b 0.0401 24.932 0.2
Denmark krone
0.1457 6.8631 0.1
Hungary forint
0.003505 285.28 1.8
Iceland krona
0.008916 112.16 13.8
Norway krone
0.1187 8.4218 4.8
Poland zloty
0.2452 4.0788 4.0
Russia ruble-d
0.01517 65.901 8.3
Sweden krona
0.1099 9.0957 7.7
Switzerland franc
1.0114 0.9887 1.3
Turkey lira
0.3079 3.2482 11.3
Ukraine hryvnia
0.0390 25.6300 6.8
U.K. pound
1.2604 0.7934 16.9
2.6522
0.0606
0.2604
3.2759
2.5966
0.2747
0.2666
0.0700
89.66
79.5
42.4
-151.3
-146.5
-148.5
-139.5
-152.2
-184.1
-84.0
-10.9
-116.7
-218.3
-153.7
-166.9
-60.3
132.4
-102.7
-66.1
-158.8
-169.5
-69.2
-90.0
...
...
84.9
44.2
-153.1
-150.9
-148.6
-144.6
-153.5
-174.3
-97.9
-38.1
-113.0
-181.4
-151.5
-163.0
-56.8
158.6
-110.0
-74.2
-154.6
-153.9
-68.6
-87.7
...
...
76.7
35.7
-153.2
-153.1
-152.4
-146.6
-155.3
-187.7
-88.0
-24.4
-117.7
-219.3
-154.3
-171.3
-60.1
123.4
-106.7
-73.8
-160.7
-170.0
-69.0
-92.1
...
...
109.7
53.6
-115.9
-145.4
-114.4
-140.8
-121.9
-173.0
-77.6
-80.3
-86.6
-202.3
-121.0
-156.7
-69.1
39.7
-83.6
-51.8
-130.2
-152.9
-13.4
-28.7
...
...
Previous
Yield
Month ago
1.686
2.509
-0.612
0.621
-0.605
0.686
-0.633
0.275
0.039
1.908
-0.258
-0.041
-0.624
0.438
0.318
3.386
-0.148
1.413
-0.688
0.452
0.229
1.231
0.919
2.152
1.719
2.208
-0.661
0.257
-0.616
0.320
-0.665
0.022
-0.109
1.384
-0.260
-0.049
-0.645
0.136
0.302
3.351
-0.229
1.024
-0.676
0.227
0.184
0.889
0.870
1.766
CBOT
CBOT
CBOT
CME
ICE-US
ICE-US
ICE-US
ICE-US
ICE-EU
COMEX
COMEX
COMEX
LME
LME
LME
LME
LME
LME
TCE
349.25
987.75
403.25
106.375
2,472
163.15
21.77
69.18
2022.00
-2.75
-10.25
-1.50
0.875
31
-2.50
0.12
-0.65
-55.00
2.5100
1223.50
17.320
1,773.00
21,700.00
5,635.00
2,170.00
2,548.00
11,725.00
205.50
-0.0410
-42.90
-1.417
34.00
125.00
283.00
29.50
82.00
235.00
6.90
2976.00
44.00
1.4145
1.3022
2.847
44.66
408.50
82.00
-1.36
-0.0388
-0.0342
0.036
-1.18
-11.50
Sources: WSJ Market Data Group, SIX

Financial Information, Tullett
Sym
Last
AIAGroup
AstellasPharma
AustNZBk
BHP
BankofChina
CKHutchison
CNOOC
CSL
Canon
CentralJapanRwy
ChinaConstructnBk
ChinaLifeInsurance
ChinaMobile
ChinaPetro&Chem
CmwlthBkAust
EastJapanRailway
Fanuc
Hitachi
Hon Hai Precisn
HondaMotor
HyundaiMtr
Ind&Comml
JapanTobacco
KDDI
Mitsubishi
MitsubishiElectric
MitsubishiUFJFin
Mitsui
Mizuho Fin
NTTDoCoMo
NatAustBnk
NipponTeleg
NissanMotor
Panasonic
PingAnInsofChina
RelianceIndsGDR
SamsungElectronics
Seven&I Hldgs
SoftBankGroup
Sony
Sumitomo Mitsui
SunHngKaiPrp
TaiwanSemiMfg
1299
4503
ANZ
BHP
3988
0001
0883
CSL
7751
9022
0939
2628
0941
0386
CBA
9020
6954
6501
2317
7267
005380
1398
2914
9433
8058
6503
8306
8031
8411
9437
NAB
9432
7201
6752
2318
RIGD
005930
3382
9984
6758
8316
0016
2330
48.35
1561.00
28.30
24.94
3.42
93.80
9.61
103.23
2976.00
17405
5.52
19.22
84.25
5.42
75.78
9265.00
19490
564.40
79.00
2998.50
131500
4.60
3771.00
2804.00
2462.50
1481.00
607.90
1496.50
183.20
2393.50
27.80
4267.00
965.20
1001.00
40.65
29.65
1598000
4244.00
6547.00
3199.00
3792.00
104.60
181.50
-0.41
0.45
2.57
2.13
-1.16
-1.00
-1.84
0.74
0.20
0.32
-1.78
-0.72
-3.27
-1.81
3.44
0.74
0.72
0.34
-3.07
0.60
1.94
-1.29
-2.03
-4.32
3.01
0.03
9.04
2.19
3.74
-3.31
4.16
-4.20
-1.84
-0.20
-0.73
...
-3.09
-2.10
-0.41
-0.25
4.09
-1.23
-2.16
1.963
2.879
-0.293
0.889
-0.277
0.935
-0.353
0.613
0.090
1.540
0.000
0.320
-0.343
0.777
0.175
2.741
0.030
1.825
-0.435
0.814
0.733
2.056
0.866
2.343
-0.78%
-1.03
-0.37
0.83%
1.27
-1.51
0.55
-0.93
-2.65
-1.61
-3.39
-7.56
1.96
0.58
5.29
1.38
3.33
2.05
3.47
2.83
-3.00
-2.67
-2.56
1.28
-2.57
-2.74
Year
low
453.25
1,182.00
551.50
124.400
3,186
179.55
24.10
78.00
2,199.00
325.00
873.75
386.75
97.800
2,422
121.80
13.48
55.79
1,451.00
2.7345
1,384.40
21.250
1,773.00
21,750.00
5,635.00
2,170.00
2,548.00
11,725.00
n.a.
1.9710
1,066.00
13.865
1,451.50
13,225.00
4,320.50
1,598.00
1,467.00
7,750.00
n.a.
3,089.00
53.72
1.6573
1.5374
3.6750
54.32
482.25
2,189.00
34.55
1.0674
0.9920
2.5000
33.85
307.00
London close on Nov 11
Australia
USD
1.3242
GBP
1.6691
CHF
1.3392
JPY
0.0124
HKD
0.1706
EUR
1.4360
Canada
1.3515
1.7032
1.3669
0.0127
0.1742
Euro
0.9220
1.1623
0.9327
0.0086
0.1188
Hong Kong
7.7589
9.7800
7.8491
0.0727
AUD
...
1.4653
...
1.0207
...
0.6824
0.6964
...
8.4141
5.7412
5.8595
80.6100
106.7370
134.5400
107.9700
...
13.7570
115.7500
78.9900
Switzerland
0.9887
1.2460
...
0.0093
0.1274
1.0722
0.7316
0.7467
U.K.
0.7934
...
0.8026
0.0074
0.1023
0.8604
0.5871
0.5991
U.S.
...
1.2604
1.0114
0.0094
0.1289
1.0847
0.7399
0.7552
Japan
0.56
CDN
0.9799
Source: Tullett Prebon
Sources: Tullett Prebon, WSJ Market Data Group
4 p.m. New York time
% YTD%
Chg Chg
Asia Titans
HK$
AU$
AU$
HK$
HK$
HK$
AU$
HK$
HK$
HK$
HK$
AU$
TW$
KRW
HK$
AU$
HK$
$
KRW
HK$
TW$
Year ago
4 p.m. New York time
Cross rates
0.3771 0.01
16.5018 110.8
3.8404 1.3
0.3053 0.6
0.3851 0.04
3.641 0.06
3.7507 0.1
14.2876 7.7
0.25 0.28
1.714
2.576
-0.594
0.687
-0.566
0.757
-0.602
0.311
0.080
2.043
-0.247
-0.031
-0.618
0.483
0.316
3.476
-0.108
1.491
-0.669
0.457
0.228
1.252
0.919
2.152
Spread Over Treasurys, in basis points

Previous
Month Ago
Year ago
Sources: SIX Financial Information; WSJ Market Data Group
Close Net Chg % Chg YTD % Chg
WSJ Dollar Index
Latest
Palm oil (MYR/mt) MDEX

NYMEX
Crude oil ($/bbl.)
NY Harbor ULSD ($/gal.) NYMEX
RBOB gasoline ($/gal.) NYMEX
Natural gas ($/mmBtu) NYMEX
Brent crude ($/bbl.) ICE-EU
ICE-EU
Gas oil ($/ton)
Middle East/Africa
Bahrain dinar
Egypt pound-a
Israel shekel
Kuwait dinar
Oman sul rial
Qatar rial
Saudi Arabia riyal
South Africa rand
Nov.
Top Stock Listings

Latest
Yen Libor
One month
Three month
Six month
One year
in US$
US$vs,
YTDchg
per US$ (%)
Fri
Oct.
Prices of futures contracts with the most open interest
Copper ($/lb.)
Gold ($/troy oz.)
Silver ($/troy oz.)
Aluminum ($/mt)*
Tin ($/mt)*
Copper ($/mt)*
Lead ($/mt)*
Zinc ($/mt)*
Nickel ($/mt)*
Rubber (Y.01/ton)
US$vs,
YTDchg
Fri
in US$ per US$ (%)
Country/currency
Yield
Corn (cents/bu.)
Soybeans (cents/bu.)
Wheat (cents/bu.)
Live cattle (cents/lb.)
Cocoa ($/ton)
Coffee (cents/lb.)
Sugar (cents/lb.)
Cotton (cents/lb.)
Robusta coffee ($/ton)
London close on Nov. 11
Yen, euro vs. dollar; dollar vs. major U.S. trading partners
Sept.
EXCHANGE LEGEND: CBOT: Chicago Board of Trade; CME: Chicago Mercantile Exchange; ICE-US: ICE Futures U.S.; MDEX: Bursa Malaysia
Derivatives Berhad; TCE: Tokyo Commodity Exchange; COMEX: Commodity Exchange; LME: London Metal Exchange;
NYMEX: New York Mercantile Exchange; ICE-EU: ICE Futures Europe. *Data as of 11/10/2016
Year
One-Day Change
Commodity
Exchange Last price
Net
Percentage
high
Source: SIX Financial Information;WSJ Market Data Group
Currencies
Country/
Maturity, in years
3.250
Australia 2
4.750
10
1.250
Belgium 2
1.000
10
1.000
France 2
0.250
10
0.000
Germany 2
0.000
10
0.250
Italy 2
1.250
10
0.100
Japan 2
0.100
10
4.000 Netherlands 2
0.500
10
4.450
Portugal 2
2.875
10
0.250
Spain 2
1.300
10
4.250
Sweden 2
1.000
10
1.250
U.K. 2
2.000
10
0.750
U.S. 2
2.000
10
529.33 6.8
64924.52 36.5
14939.04 11.9
48694.90 4.7
3358.44 9.8
Aug.
Latest, month-ago and year-ago yields and spreads over or under U.S. Treasurys on benchmark two-year
and 10-year government bonds around the world. Data as of 3 p.m. ET
YTD
% chg
2489.83 4.5
1757.35 4.4
927.29 6.9
2070
Nov.
Global government bonds
Data as of 4 p.m. New York time
Close
The Global Dow

MSCI EAFE
MSCI EM USD
Oct.
3.76
-9.85
1.32
39.64
-1.16
-10.15
19.08
-1.98
-19.02
-19.42
3.95
-23.43
-3.71
15.57
-11.40
-19.08
-7.54
-18.38
95.54
-23.31
-11.74
-1.71
-15.66
-11.10
21.43
15.48
-19.71
3.53
-24.76
-3.64
-7.95
-11.77
-24.56
-19.31
-5.24
-3.10
26.83
-23.53
6.65
6.56
-17.67
11.57
26.92
Cur Stock
Sym
Last
HK$
AU$
AU$
AU$
4502
0700
8766
7203
WES
WBC
WOW
4638.00
200.00
4410.00
5952.00
41.43
31.91
23.38
TakedaPharm
TencentHoldings
TokioMarineHldg
ToyotaMtr
Wesfarmers
WestpacBanking
Woolworths
Stoxx 50
CHF
CHF
CHF
DKK
CHF
ABB
ASMLHolding
AXA
AirLiquide
Allianz
AnheuserBuschInBev
AstraZeneca
BASF
BNP Paribas
BT Group
BancoBilVizAr
BancoSantander
Barclays
Bayer
BP
BritishAmTob
Daimler
DeutscheTelekom
Diageo
ENI
GlaxoSmithKline
HSBC Hldgs
INGGroep
ImperialBrands
IntesaSanpaolo
LVMHMoetHennessy
LloydsBankingGroup
LOreal
NationalGrid
Nestle
Novartis
NovoNordiskB
Prudential
ReckittBenckiser
RioTinto
RocheHldgctf
ABBN
ASML
CS
AI
ALV
ABI
AZN
BAS
BNP
BT.A
BBVA
SAN
BARC
BAYN
BP.
BATS
DAI
DTE
DGE
ENI
GSK
HSBA
INGA
IMB
ISP
MC
LLOY
OR
NG.
NESN
NOVN
NOVO-B
PRU
RB.
RIO
ROG
21.01
91.19
22.15
94.96
150.80
99.02
4326.00
80.88
54.75
361.00
5.91
4.25
201.75
93.90
435.35
4307.00
64.77
14.37
1982.50
12.55
1534.50
619.90
12.85
3434.50
2.23
162.00
59.50
157.15
955.70
68.60
72.50
228.50
1477.50
6871.00
3069.00
234.50
% YTD%
Chg Chg Cur Stock
1.18 -23.53
-3.94 30.98
5.63 -6.41
1.95 -20.51
0.63 -0.43
3.07 -4.92 CHF
0.82 -4.57
CHF
-0.05 16.98
-2.04 10.47
-0.23 -12.21
-0.33 -8.38
1.38 -7.80 CHF
0.44
-1.78
-0.58
-1.19
3.78
-2.28
-4.04
0.32
0.36
-3.02
1.14
1.70
0.60
-0.50
-1.57
-2.48
-0.86
-1.00
1.34
-0.18
-0.34
-0.22
-1.13
1.25
-0.44
-1.09
-1.04
-3.49
0.07
-2.49
-1.14
-13.44
-6.29
14.37
4.82
-23.47
-10.51
-5.82
-7.83
-18.91
22.98
14.21
-16.51
-13.04
6.79
-9.06
11.76
15.61
26.66
-4.24
-27.78
11.80
-18.57
1.19
1.94
-7.98
-16.47
-42.86
-3.49
9.39
55.04
-15.16
RoyDtchShell A
SAP
Sanofi
SchneiderElectric
Siemens
Syngenta
Telefonica
Total
UBSGroup
Unilever
Unilever
Vinci
VodafoneGroup
ZurichInsurance
Sym
Last
RDSA
SAP
SAN
SU
SIE
SYNN
TEF
FP
UBSG
UNA
ULVR
DG
VOD
ZURN
1949.00
76.45
76.07
62.93
108.15
378.10
8.35
42.45
15.43
36.52
3163.50
60.70
204.60
261.60
% YTD%
Chg Chg
-4.37 27.72
-1.20
4.18
-1.18 -3.22
-1.75 19.73
-1.05 20.33
-0.94 -3.62
-2.70 -18.43
-2.62
5.99
1.11 -20.95
-0.18 -8.93
-0.55
8.10
-0.87
2.64
-1.59 -7.42
0.15
1.24
DJIA
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
AmericanExpress
Apple
Boeing
Caterpillar
Chevron
CiscoSystems
CocaCola
Disney
DuPont
ExxonMobil
GenElec
GoldmanSachs
HomeDepot
Intel
IBM
JPMorganChase
JohnsJohns
McDonalds
Merck
Microsoft
NikeClB
Pfizer
Procter&Gamble
3M
TravelersCos
UnitedTech
UnitedHealthGroup
VISAClA
Verizon
WalMart
AXP
AAPL
BA
CAT
CVX
CSCO
KO
DIS
DD
XOM
GE
GS
HD
INTC
IBM
JPM
JNJ
MCD
MRK
MSFT
NKE
PFE
PG
MMM
TRV
UTX
UNH
V
VZ
WMT
70.50
108.43
148.52
93.01
106.64
31.36
41.03
97.68
69.21
85.67
30.71
203.94
129.85
34.61
161.27
76.69
118.47
114.22
63.95
59.02
50.77
32.59
83.58
175.08
110.28
108.86
146.42
81.88
46.69
71.23
0.56
1.37
0.59
3.01
0.56
2.72
-0.47 36.86
-1.07 18.54
1.16 15.49
0.22 -4.49
2.86 -7.04
-2.45
3.92
-1.59
9.90
0.99 -1.41
1.53 13.16
0.64 -1.81
0.32
0.46
0.66 17.19
0.05 16.14
-0.90 15.33
-0.25 -3.32
-1.55 21.07
0.55
6.38
0.75 -18.77
-2.69
0.96
0.75
5.25
0.46 16.22
0.60 -2.29
0.42 13.31
0.20 24.46
0.01
5.58
...
1.02
-0.22 16.20
Asia Titans 50
Last: 139.48 t 0.20, or 0.15%
YTD s 2.4%
High
Close
Low
150
145
140
135
130
125
World
Sept.
50day
moving average
12
19
26
2
9
Sept.
16
23
30
7
Oct.
14
21
28
4
Nov.
11
Stoxx 50
Last: 2810.87 t 14.86, or 0.53%
YTD t 9.3%
2930
2880
2830
2780
2730
2680
12
19
26
2
9
Sept.
16
23
30
7
Oct.
14
21
28
4
Nov.
11
Dow Jones Industrial Average
P/E: 20
Last: 18847.66 s 39.78, or 0.21%
YTD s 8.2%
18700
18400
18100
17800
17500
12
19
26
2 9
Sept.
16
23
30
7
Oct.
Note: Price-to-earnings ratios are for trailing 12 months

Sources: WSJ Market Data Group; Birinyi Associates
14
21
28
4
Nov.
11
FINANCE & MARKETS
Carlyle
New U.S. Point Man on Regulation AFund
Lost
A critic of heavy
oversight is picked to
recommend changes
in financial rule book
WASHINGTONDonald
Trump has tapped a longtime
critic of heavy regulation to
flesh out his new administrations plans for remaking the
financial rule book, including
the potential dismantling of
much of the Dodd-Frank financial overhaul.
Paul Atkins served as a Republican member of the Securities and Exchange Commission from 2002 to 2008,
where he spoke out against
big fines for companies, arguing they punish shareholders.
Now Mr. Atkins, 58 years old,
is the member of the president-elects transition team
charged with recommending
policies on financial regulation, according to current and
former regulators briefed on
the matter.
Mr. Trump has detailed little about his views on financial regulation beyond his vow
to dismantle the 2010 DoddFrank lawa campaign promise on which his transition
team privately has sought to
temper expectations, saying
the focus was on rescinding or
scaling back individual provisions of the law that Republicans find most objectionable.
The fact that Mr. Trump
has turned to Mr. Atkins for
recommendations provides an
additional window into how
the president-elect is likely to
govern.
Mr. Atkins, too, has repeat-
BRENDAN HOFFMAN/GETTY IMAGES
BY ANDREW ACKERMAN
AND DAVE MICHAELS
Paul Atkins, a former Republican member of the Securities and Exchange Commission, testifies at a
hearing on Capitol Hill in 2011. He has assailed the Dodd-Frank law on financial regulation.
edly assailed Dodd-Frank, targeting provisions such as the
creation of a systemic-risk
council that has the power to
designate large financial firms
for bank-like regulation from
the Federal Reserve.
Mr. Atkins has said the
council will substitute government judgments for investor judgments, deciding for investors whether a product
merits investment.
An aide to Mr. Atkins referred requests for comment
to the Trump transition team,
which didnt immediately comment.
Mr. Atkins, who grew up in
Tampa, Fla., and attended
Vanderbilt Law School, is a
staunch libertarian. He first
worked at the SEC in 1990 as
an aide to Richard Breeden,
then the Republican chairman.
His work impressed Arthur
Levitt, a Democrat who took

over the agency in 1993 and
who asked Mr. Atkins to stay
as part of a small group of advisers to the new chairman. I
said, I dont care what party
you came from, Mr. Levitt
said in an interview.
A decade later, during his
time as an SEC commissioner,
Mr. Atkins became an outspoken critic of the agencys approach to cracking down on
corporate misdeeds through
large penalties against firms
that agreed to settle fraud
charges. For instance, he dissented when the agency levied
a $250 million fine against
Qwest Communications in
2004 for what it described as
pervasive accounting fraud
throughout the now-defunct
telecommunications firm.
Proponents argue that large
financial penalties deter com-
panies from engaging in illegal

behavior. But Mr. Atkins maintains they punish shareholders
who already have been victimized by a companys fraud,
further damaging the value of
corporate shares.
Are we just sort of headline-grabbing? he asked in a
2005 interview with Business
Week. Is that really the best
way to deter bad conduct, by
hurting the people that were
supposedly helping? No. The
best solution is to hold individuals accountable because
someone in the company
cooked the books.
Richard Ketchum, a former
head of the Financial Industry
Regulatory Authority, said in
an interview that Mr. Atkinss
basic judgments are questioning regulation and being
very pro deregulation.
At the SEC, Mr. Atkins re-
peatedly criticized the scope

of financial regulation, which
he warned often came at the
expense of market competition
and could lead to unforeseen
consequences.
Along with another GOP
commissioner, Cynthia Glassman, he dissented in 2005
from backing a sweeping package of stock-trading overhauls
known as Regulation National
Market System, or Reg NMS,
warning its provisions were
unnecessarily complex and
could lead to unanticipated
market distortions. The SEC
approved the measure.
Critics say the rule, which
requires orders to buy or sell
shares to be routed to whichever venue has the best price,
has worsened market quality
by fueling a spaghetti bowl of
data streams and connections
between brokers and trading
platforms.
In a January opinion column in The Wall Street Journal, Mr. Atkins called for a
broad overhaul to the rule
rather than Band-Aid fixes.
While a commissioner, he
also dissented from rules to
regulate the murky world of
hedge funds, arguing that the
SEC lacked the authority and
that no pretext existed for the
requirements since fraud
wasnt rampant in the industry.
In a vindication for Mr. Atkins, a federal appeals court
tossed out the SECs hedgefund registration rules in
2006, though the 2010 DoddFrank law effectively reimposed them. Repeated efforts
in the House of Representatives to scale back registration
requirements for private funds
have so far failed to gain traction.
On Deal in
Morocco
BY MATT JARZEMSKY
AND JULIET CHUNG
A Carlyle Group LP hedge
fund has lost the $400 million
it invested last year in a Moroccan oil-refinery deal, according to a securities filing
and people familiar with the
matter.
The hedge fund, known as
Vermillion, was to receive a
share of revenue at the refinery, which ran into financial
trouble and was seized by Moroccan authorities later in
2015, the people said. The refinery, known as Societe
Anonyme Marocaine de lIndustrie du Raffinage, or Samir,
was put into liquidation
this year.
In a note in the Washington, D.C., private-equity firms
quarterly filing recently, Carlyle said it believes $400 million in petroleum commodities
were misappropriated by
third parties outside the U.S.
It didnt identify the soured
deal or name the third parties.
The note, which hadnt previously been reported on, refers
to Samir, the people said.
Carlyle has spent $5 million
in legal and professional fees
trying to get its money back
and expects the matter could
lead to litigation and significant additional costs or liabilities, according to the filing. It
has also received a redemption
request from an unnamed investor as a result of the episode, additional details of
which remain murky.
Carlyle expects to join a
group similar to creditors
committees that are formed in
U.S. chapter 11 cases, the people said.
But the prospects for a recovery of its investment are
less clear than they would be
in a U.S. bankruptcy proceeding.
Other creditors include BP
PLC and Glencore PLC.
The loss represents the latest misstep in Carlyles hedgefund business, which has suffered declines in commodity
and credit investments and investor withdrawals.
Carlyle is pulling back from
the business and plans to focus more on corporate lending.
Co-founder William Conway
said on an earnings call last
month that Carlyle is decreasing its exposure to shorterterm trading businesses, areas
where, frankly, we have not
performed well.
Carlyle expects to have
about $1 billion of hedge-fund
assets by year-end, down from
$14.7 billion as of the third
quarter of 2014.
Trump Win Could Ease Insurance Oversight

BY LESLIE SCISM
Insurers are hoping in a
Trump administration they
will be deemed less important, systemically, that is.
Three of the biggest U.S.
insurers were designated as
systemically important financial institutions, or SIFIs, in
2013 and 2014 by a panel of
federal regulators created under the 2010 Dodd-Frank regulatory-overhaul law. Because
of the designation, American
International Group Inc. and
Prudential Financial Inc. face
stiffer regulation and capital
cushions than peers, though
final rules are still being
crafted.
MetLife Inc. was similarly
tagged but went to court and
won a ruling in March rescinding the label on the basis
of a flawed designation process. The government is appealing.
A Trump presidency, industry experts and investors say,

could mean a friendlier regulatory environment. President-elect Donald Trump told
The Wall Street Journal on
Friday he planned on deregulating financial institutions.
Mr. Trumps team, people familiar with the matter said, is
focused on rescinding certain
Dodd-Frank provisions Republicans find most objectionable,
such as the Financial Stability
Oversight Councils authority
to designate large non-banks
systemically important.
Since Tuesdays close,
shares of MetLife have advanced 12%, Prudentials are
up 10% and AIGs have advanced 6.4%, while the
broader market is up 1.2%, according to FactSet.
MetLife Chief Executive
Steven Kandarian briefly addressed the elections impact
at an investor event Thursday,
saying it may result in a

more constructive approach
at the federal level.
In addition, some analysts
think new conflict-of-interest
regulations issued in April by
the Labor Department de-
Since Tuesdays
election, shares of
MetLife, Prudential
and AIG are all up
sharply.
signed to protect retirees
from unnecessarily expensive
investment products could
also be pulled back. If so, that
shift could benefit insurers
selling
commission-based
variable and indexed annuities.
FINANCE WATCH
STATE BANK OF INDIA
Quarterly Profit
Declines 35%
State Bank of India, the
countrys biggest lender, reported
a 35% drop in its fiscal secondquarter net profit as it set aside
more funds for rising bad loans.
The bank reported a net
profit of 25.38 billion rupees
($376 million) in the three
months ended Sept. 30, compared with 38.79 billion rupees a
year earlier. That met the 25.33
billion rupees that was the average forecast of analysts polled
by Thomson Reuters.
The bank reported a net interest income of 144.38 billion rupees during the July-September
period, marginally up from 142.53
billion rupees a year earlier.
However, its gross bad loans
rose to 7.14% of total lending,
from 4.15% a year earlier. It was
6.94% in the preceding quarter.
The bank set aside 76.70 billion rupees for nonperforming
assets, almost double the
amount from a year earlier.
Debiprasad Nayak
gest shareholder and owns

about 10% of the bank.
The scandal was an egregious mistake, Mr. Buffett said.
Wells Fargo designed a system
that produced bad behavior.
When you find that out youve
got to do something about it,
and the big mistake was they
didnt do something about it.
Berkshire applied to the Federal Reserve earlier in the year
for permission to expand its
Wells Fargo holding and pledged
to be a passive investor. Because
of that, Mr. Buffett said, he
couldnt speak out publicly about
the scandal or directly advise the
board of directors.
Nicole Friedman
WOORI BANK
Seoul Cuts Its Stake

In Lender With Sale
South Korea s government
has sold a $2.1 billion stake in
Woori Bank to multiple investors,

according to the countrys top financial regulator.
The sales is the governments latest move to privatize
the lender and recoup some of
the taxpayer money it pumped
in to bail out the bank some
two decades ago.
The Financial Services Commission said Sunday that the
sale of the 29.7% stake in
tranches to seven successful bidders, including Chinese-owned
Tong Yang Life Insurance Co.,
will reduce state-run Korea Deposit Insurance Corp.s share in
Woori to 21% from 51% previously.
The Korea Deposit Insurance
Corp. can collect 2.4 trillion won
(about $2.1 billion) from the latest stake sale, raising the total
of recouped bailout money to
10.6 trillion won83.4% of the
public funds injected into Woori.
Bank.
Kwanwoo Jun
DANIEL ACKER/BLOOMBERG NEWS
Berkshire Hathaway Inc.

hasnt sold any shares in Wells
Fargo & Co. since the banks
sales-practices scandal, Chairman
Warren Buffett said in an interview with CNN.
Berkshire is Wells Fargos big-
Warren Buffett: Wells Fargo scandal was an egregious mistake.
A Prudential spokesman
said: It would be premature
to comment on what the
Trump administration may or
may not do regarding Dodd
Frank. An AIG spokesman declined to comment Friday, and
MetLife didnt have immediate comment.
One concern for insurance
firms in a Trump administration surrounds possible tax
changes.
Lower corporate incometax rates are a positive for the
industry, but a simplified tax
system might not be.
What if taxes are vastly
simplified and the Byzantine
array of loopholes, tax-advantaged investment products,
and tax mitigation products
eliminated? Thats probably
bad for life insurers that cater
to the needs of high-income
individuals, said Imperial
Capital LLC credit analyst David Havens.
INTERNATIONAL INVESTMENT FUNDS
Advertisement
BERKSHIRE HATHAWAY
Buffetts Firm Hasnt

Sold Wells Shares
More generally, insurers

are already benefiting from
upward movement in the 10year Treasury yield, which on
Thursday reached 2.118%, up
from 1.867% on Tuesday. The
U.S. bond market was
closed Friday for Veterans
Day. With higher rates, insurance firms earn more on the
bonds they buy with customers premiums and hold until
paying future claims.
Future capital market gyrations are obviously uncertain, but it is difficult to challenge investors initial read
that a Trump presidency is a
major positive (might we say
nirvana) to MET, Janney
Montgomery Scott LLC analyst Larry Greenberg told clients in a note.
He wrote further, on the
governments appeal of the
MetLife decision, that the
Trump administration could
theoretically drop the case.
[ Search by company, category or country at asia.WSJ.com/funds ]

FUND NAME
Data as shown is for information purposes only. No offer is being made by

Morningstar, Ltd. or this publication. Funds shown arent registered with the
U.S. Securities and Exchange Commission and arent available for sale to United
States citizens and/or residents except as noted. Prices are in local currencies.
All performance figures are calculated using the most recent prices available.
FUND NAME
NAV
GF AT LB DATE CR
NAV
%RETURN
YTD 12-MO 2-YR
n Chartered Asset Management Pte Ltd - Tel No: 65-6835-8866

Fax No: 65-6835 8865, Website: www.cam.com.sg, Email: cam@cam.com.sg
CAM-GTF Limited
OT OT MUS 11/04 USD 304431.01
8.7
7.2
-7.4
n Website: Https://Www.Valuepartners-Group.Com/ Tel: (852) 2143 0688

China A-Share Fund Cls A AUD H OT
China A-Share Fund Cls A AUD UnH OT
China A-Share Fund Cls A CAD H OT
China A-Share Fund Cls A EUR H OT
China A-Share Fund Cls A EUR UnH OT
China A-Share Fund Cls A GBP H OT
China A-Share Fund Cls A GBP UnH OT
China A-Share Fund Cls A HKD H OT
China A-Share Fund Cls A HKD UnH OT
China A-Share Fund Cls A NZD H OT
China A-Share Fund Cls A NZD UnH OT
China A-Share Fund Cls A RMB (CNH) OT
China A-Share Fund Cls A USD OT
China A-Share Fund Cls A USD H OT
China Greenchip-A Units
AS
China Greenchip-A Units AUD H AS
China Greenchip-A Units CAD H AS
China Greenchip-A Units NZD H AS
China Greenchip-A Units USD AS
China Greenchip-A2 QDIs Units AS
GC Hi Yield Inc - Cls A MDIs GBP H OT
GC Hi Yield Inc-Cls A MDIs AUD H OT
GC Hi Yield Inc-Cls A MDIs CAD H OT
GC Hi Yield Inc-Cls A MDIs NZD H OT
GC Hi Yield Inc-Cls P HKD Acc sh OT
GC Hi Yield Inc-Cls P HKD MDIs sh OT
GC Hi Yield Inc-Cls P MDIs SGD H OT
GC Hi Yield Inc-Cls P USD Acc sh OT
GC Hi Yield Inc-Cls P USD MDIs sh OT
GC Hi Yield Inc-ClsA MDIs EUR H OT
Hi-Div Stk Cls A RMB H Acc
OT
Hi-Div Stk Cls A RMB UnH Acc OT
Hi-Div Stk Cls A1
OT
Hi-Div Stk Cls A2 AUD H MDIs OT
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Hi-Div Stk Cls A2 GBP H MDIs OT
Hi-Div Stk Cls A2 HKD MDIs
OT
Hi-Div Stk Cls A2 MDIs
OT
Hi-Div Stk Cls A2 NZD H MDIs OT
Hi-Div Stk Cls A2 RMB H MDIs OT
Hi-Div Stk Cls A2 RMB UnH MDIs OT
Intel-China Converg Fund-A AUD H AS
Intel-China Converg Fund-A CAD H AS
Intel-China Converg Fund-A NZD H AS
Intel-China Converg Fund-A Units AS
Intel-Chinese Mainland Foc Fund AS
VP Classic-A Units
AS
VP Classic-B Units
AS
www.ebook3000.com
OT HKG
OT HKG
OT HKG
OT HKG
OT HKG
OT HKG
OT HKG
OT HKG
OT HKG
OT HKG
OT HKG
OT HKG
OT HKG
OT HKG
EQ CYM
EQ CYM
EQ CYM
EQ CYM
EQ CYM
EQ CYM
OT CYM
OT CYM
OT CYM
OT CYM
OT CYM
OT CYM
OT CYM
OT CYM
OT CYM
OT CYM
OT HKG
OT HKG
OT HKG
OT HKG
OT HKG
OT HKG
OT HKG
OT HKG
OT HKG
OT HKG
OT HKG
EQ CYM
EQ CYM
EQ CYM
EQ CYM
EQ CYM
EQ HKG
EQ HKG
11/10 AUD
11/10 AUD
11/10 CAD
11/10 EUR
11/10 EUR
11/10 GBP
11/10 GBP
11/10 HKD
11/10 HKD
11/10 NZD
11/10 NZD
11/10 CNH
11/10 USD
11/10 USD
11/10 HKD
11/10 AUD
11/10 CAD
11/10 NZD
11/10 USD
11/10 HKD
11/10 GBP
11/10 AUD
11/10 CAD
11/10 NZD
11/10 HKD
11/10 HKD
11/10 SGD
11/10 USD
11/10 USD
11/10 EUR
11/10 CNH
11/10 CNH
11/10 USD
11/10 AUD
11/10 CAD
11/10 GBP
11/10 HKD
11/10 USD
11/10 NZD
11/10 CNH
11/10 CNH
11/10 AUD
11/10 CAD
11/10 NZD
11/10 USD
11/10 USD
11/10 USD
11/10 USD
12.16 -4.1 -1.9

10.78 -10.9 -13.5
11.29 -5.3 -3.2
11.90 -6.2 -4.0
11.71
NS
NS
11.93 -2.6 -0.3
13.96 12.4 14.5
12.06 -5.3 -3.1
11.77 -5.7 -5.5
11.97 -3.9 -1.2
10.02 -11.5 -15.3
12.93 -2.3
0.4
11.75 -5.8 -5.5
12.00 -4.8 -2.7
52.75 -0.4 -2.3
8.90
0.1 -1.7
8.68 -0.9 -2.9
9.13
1.0 -0.9
8.73 -0.5 -2.3
9.61 -0.4 -2.3
9.66 14.6 13.3
9.21 16.3 15.3
9.26 15.0 13.6
9.51 16.8 15.8
14.01 15.3 14.0
9.10 15.4 14.0
9.99 15.4 14.3
14.12 15.2 13.9
9.16 15.3 14.0
10.09 13.8 12.4
10.25
4.5
3.0
12.30
5.6
6.3
73.80
2.7
0.8
9.14
3.0
1.3
9.21
1.8 -0.2
8.64
1.1 -0.8
9.39
2.7
0.8
10.31
2.6
0.7
9.29
2.9
1.3
8.89
4.8
3.4
9.31
6.4
7.4
9.11 -3.1 -6.5
10.45
NS
NS
10.45
NS
NS
137.86 -5.7 -7.3
38.34 -7.2 -8.1
264.76
0.7
0.1
119.24
0.2 -0.4
NS
NS
NS
NS
NS
NS
NS
NS
NS
NS
NS
13.7
9.2
NS
-6.5
-6.8
-8.0
-5.6
-7.3
-6.6
NS
10.8
9.2
11.9
9.2
9.2
9.7
9.2
9.2
NS
3.1
5.6
0.5
1.3
-0.2
NS
0.5
0.6
2.1
3.2
6.0
NS
NS
NS
0.2
1.1
3.4
2.9
NAV
GF AT LB DATE CR
VP Classic-C Units
VP Classic-C Units AUD H
VP Classic-C Units CAD H
VP Classic-C Units HKD H
VP Classic-C Units NZD H
VP Classic-C Units RMB
VP Classic-C Units RMB H
VP Multi-Asset Fund Cls A HKD
VP Multi-Asset Fund Cls A USD
VP Taiwan Fund
AS
AS
AS
AS
AS
AS
AS
OT
OT
AS
EQ HKG
EQ HKG
EQ HKG
EQ HKG
EQ HKG
EQ HKG
EQ HKG
OT HKG
OT HKG
EQ CYM
11/10 USD
11/10 AUD
11/10 CAD
11/10 HKD
11/10 NZD
11/10 CNH
11/10 CNH
11/10 HKD
11/10 USD
11/10 USD
NAV
%RETURN
YTD 12-MO 2-YR
15.03
12.43
12.07
10.26
12.52
10.57
10.01
9.77
9.92
16.79
0.2
1.4
0.8
0.0
1.0
3.6
2.2
NS
1.0
16.5
-0.4
0.8
0.0
NS
0.7
NS
1.8
NS
0.0
15.9
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3.0
4.6
3.6
NS
5.2
NS
NS
NS
NS
3.3
IPhone Tie
Brings a Toll
For Qorvo
Qorvo already has paid a
big price to stay dialed into
the iPhone. The worry for investors is how long that bill
will run.
The company has been
plagued with productionyield issues on some of its
latest productsradio-frequency chips used in smartphones to filter interference
from different spectra. These
are key components in todays smartphones, and the
market is effectively controlled by Qorvo, Skyworks
and Broadcom (once known
as Avago).
That gives the suppliers
some leverage, but Qorvo
still must work to keep its
largest customer happy. So
the company had to produce
more chips to supply enough
quality units for the latest
iPhone. That pushed adjusted gross margins to
42.8% for the quarter ended
Oct. 1down 7 percentage
points year over year.
Qorvos shares jumped
Friday, helped by the purchase of 10,000 shares by its
chief financial officer. But
the stock is down 15% from
when the production issues
were disclosed three months
ago. The company expects
margins to improve this
quarter, but it doesnt see a
return to the 50% range until
the end of its next fiscal
year.
Ed Snyder of Charter Equity says this reflects the
possibility that Apple will
continue using the chips that
have driven down Qorvos
margins this year when it
produces the next iPhone SE,
expected in early 2017.
So while Qorvo carries a
discount to its two main
peers, its lingering margin
issues likely will keep the
stock dialed down for a
while longer.
Dan Gallagher
HEARD ON THE STREET

FINANCIAL ANALYSIS & COMMENTARY
Warning for Trump and the Yuan

Donald Trumps enmity toward Chinas currency isnt
directly responsible for the
yuan hitting its weakest point
against the dollar in six years
on Friday. But it sure could
matter how China chooses to
manage it going forward.
Beijing set the yuans midpoint Friday at 6.81 to the
dollar, while the freely
traded offshore variant
touched 6.83, around the
same level at which it was
pegged from 2008 to 2010.
For Mr. Trump, who accuses
China of keeping its currency
artificially low, such a move
could even appear as a subtle welcome message.
There were, however,
good, technical reasons for
Chinas central bank to set
the currency weaker on Friday. Though its decision
making remains less than
crystal clear, we know it is
influenced by how other currencies trade in a basket
against the yuan. The dollar
is the biggest part of the
basket and its strength,
along with yen and euro
Further to Fall?
How many Chinese yuan one U.S. dollar buys
6.76
6.78
6.80
6.82
Scale inverted to
show weakening yuan
Five-minute intervals
6.84
Monday
Tuesday
Wednesday
Thursday
Friday
Source: FactSet
weakness, argued for the

move lower, which anyway
has been the yuans direction
of travel for over a year.
While economists broadly
agreed that it was too strong
for years, that is no longer
the case. Simply look at market forces: Chinese are trying to get their money out of
the country. To prevent the
yuan from plummeting, Beijing spent $136 billion in re-
serves last quarter on a balance of payments basis.

China probably couldnt
meaningfully strengthen the
yuan if it tried. The important question is whether it
can stop the yuan from falling even faster.
On that point, Mr.
Trumps policies will matter
greatly. Right now, China
sees it in its own interests to
block the yuan from falling
quickly. It engenders stability domestically, preventing

an even faster exodus of
cash from the economy. It
also helps relations with the
U.S., which has gently pestered China for years to keep
the currency strong.
A combative relationship
with the U.S., as foreshadowed in Mr. Trumps threat
of imposing tariffs as soon
as he takes office, could
push China to decide its
greater interest is actually
letting the yuan find a bottom quickly. Such a snap depreciationanalysts guess it
could fall 10% or more in a
daywould, after the dust
settles, create an equilibrium
on outflows, stimulate exports and preserve Chinas
reserves for another time.
But in the process, it
would upend global markets
that have grown accustomed
to Chinas current currency
path. Mr. Trump may push
for China to strengthen its
currency, but the result may
be that it gets even weaker.
Alex Frangos
WSJ.com/Heard
OVERHEARD
Nvidia sees a big business
coming in e-sports. On Friday,
the company showed that it
has mastered a different skill:
the short squeeze.
The chip makers stock
jumped 26% following blowout results for its fiscal third
quarter. Sales in Nvidias
gaming segment, which delivers graphics processors used
in the types of high-end PCs
that drive competitive videogaming, soared by 63% year
over year.
Nvidias share price already
had doubled this year, while
bets against the company
rose by 50%. These short
sellers wagered that the company couldnt justify its multiple of more than 30 times
forward earnings.
Nvidia Chief Executive
Jen-Hsun Huang predicted
that professional videogame
playing will become the largest sporting industry in the
world.
If fans truly turn to esports, Nvidia will more than
justify that lofty valuation.
Samsungs Burned Battery Unit May Yet Charge Back Up

The Samsung battery
unit that took the brunt of
the blame for exploding
smartphones may not be as
badly burned as markets
think.
Battery-maker Samsung
SDI, which supplied the illfated Galaxy Note 7, has
seen its stock fall 21% since
the first reported case of
battery fire in August.
Shares of Samsung Electronics, which made the phone,
have been flat over the period, though the battery
fires wiped out nearly all of
its operating profit for the
mobile segment last quarter, with billions of lost income to come this quarter.
The company fingered
faulty batteries as the cause
of the incidents. Yet a defin-
ANDY RAIN/EUROPEAN PRESSPHOTO AGENCY
Email: heard@wsj.com
Samsungs Galaxy Note 7

itive cause still isnt clear.
Experts and analysts said it
is possible the problem
stemmed from another component in the smartphone.
There were still reports of

overheated phones after
Samsung replaced the devices with batteries made
by another supplier.
Samsung Electronics
shares have been buoyed
by its big chunk of cash, as
well as its robust components business. To a certain extent, the same could
be said for its battery affiliate, too.
SDI sits on 1.4 trillion
won ($1.25 billion) of net
cash, or 22% of its market
value. The company also
owns around 15% of Samsung Display, with Samsung
Electronics owning the rest.
The display business has enjoyed a solid recovery in the
past year thanks to strong
demand for screens lit by
organic light-emitting diodes. Samsung is far ahead

of rivals in this area and has
nearly all of the smallscreen OLED market currently. Analysts widely expect the next iPhones to
adopt such screens, which
will keep the market buoyant. Another demand of
OLED displays could come
from virtual-reality gadgets.
Deutsche Bank values
SDIs stake in the unlisted
Samsung Display unit at 3.9
trillion won. SDI booked
around 110 billion won in
profit from this stake last
quarter. Throw in SDIs net
cash and some other investments, such as a 2% stake in
the conglomerates de facto
holding company, Samsung
C&T, and SDIs core battery-
making business is trading

at zero value.
And while the battery
business is still money-losing, the loss margin is narrowing excluding the oneoff provision booked due to
the Note 7 recall. The companys electric-vehicle battery business was hurt by
the failure to get battery
certifications from China,
but maybe set to improve
from demand elsewhere. Its
energy-storage system business, which could be a supplier to Tesla as per a tweet
from Elon Musk back in
June, is also seeing better
demand.
With the battery business
already valued at around
zero, SDI could be ready for
a jolt.
Jacky Wong
Reine de Naples Collection
in every woman is a queen
B A L H A R B O U R B E I J I N G C A N N E S C H E N G D U D U B A I E K AT E R I N B U R G G E N E VA G S TA A D H O N G K O N G K U A L A L U M P U R L A S V E G A S L O N D O N
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COLLECTORS STAY CAUTIOUS

LIFE & ARTS | A8

MONDAY, NOVEMBER 14, 2016 ~ VOL. XLI NO. 53

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BRENT 44.75 g 2.38%

GOLD 1223.50 g 3.32%

EURO 1.0847 g 0.42%

economy in a higher growth

Funerals Follow Pakistan Blast

Toyota agreed to pay

Life & Arts....... A8-9, A12

China: RMB28.00; Hong Kong: HK$23.00;

s Copyright 2016 Dow Jones &

THE PLACES THAT MADE TRUMP

holding American values like hard

swing to Mr. Trump on Tuesday was

HONG KONGPresidentelect Donald Trumps promised

Lock the Door! Your Baby Boomer

Giant generation has gobs of heirlooms

The U.S. Embassy in Afghanistan temporarily

SHAKIL ADIL/ASSOCIATED PRESS

Foxconn reported a fall

Trump was on the cusp

since before the recession of

VW confirmed that investigators are looking

DLR 106.74 g 0.08%

Faster Growth in U.S. Is Forecast

A Singapore court sentenced an ex-banker at BSI

Investors Look to an Altered Landscape

which President-elect Donald

bonds fall amounts to a roll of

THE WALL STREET JOURNAL.

A2 | Monday, November 14, 2016

Trumpism Leads Down Different Path in EU

cards for next year. Similarly,

economic strategy. This can

straight up, he said.

called Juncker plan have so

et the ECB is bumping

bonds that increase their payout when inflation exceeds a

vestors at a time of stretched

tion if petitioners can secure

S&P 500 performance

Oct. 25 through Nov. 4

cent rise in bond yields that

2050 One-hour intervals

Investors sold bonds on expectations of

They bought sectors perceived to benet

And they bet on lower taxes, which could help

Yield on 10-year Treasury note*

Nasdaq Biotechnology index

S&P 500 quarterly earnings

10% change from year earlier

YTD through Nov. 4

*Yields rise as prices fall; U.S. bond market closed Friday

THE WALL STREET JOURNAL.

ven if the eurozone

Trump has called it a disaster

THE WALL STREET JOURNAL.

Paul Beckett, Asia Editor

NEED ASSISTANCE WITH