For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
DJIA 21320.04 g 158.13 0.7%
Whats
News
Business & Finance
B erkshire struck a deal
to buy Energy Future
for $9 billion, giving Buf-
fett its Texas-based Oncor
and cementing electricity
as one of the conglomer-
ates largest businesses. A1
 QVC and Home Shop-
ping Network have agreed
to merge in a $2.1 billion
deal, as the two adapt to a
changing retail landscape. B1
 Amazons Bezos and Dish
Networks Ergen have dis-
cussed a partnership to en-
ter the wireless business. B1
 Qualcomm is asking
trade authorities to block
some iPhone and iPad im-
ports, opening a new front
in its dispute with Apple. B3
 Samsung is forecasting
its second-quarter operat-
ing profit will easily be the
companys highest ever. B4
 The S&P 500 posted its
biggest one-day drop since
May in a broad selloff. The
Dow shed 158.13 points. B11
 Investors sold government
bonds anew amid anxiety
that central banks are moving
toward reducing stimulus. B11
 The U.S. trade deficit
narrowed in May as exports
rose to their highest level
in more than two years. A2
 U.S. oil exports to China
have surged as American
crude has become cheaper
than that of Mideast rivals. B1
 The EU accused GE,
Canon, Merck KGaA and
Sigma-Aldrich of breaching
the blocs merger rules. B3
 Fed governor Powell said
there is an urgent need for
Congress to overhaul the
housing-finance system. A2
World-Wide
 Trump, in a speech in Po-
land aimed at broadening
his nationalist vision, de-
scribed the West as locked
in a struggle it could lose
unless it can summon the
courage to see it through. A1
 Many ships carrying Irans
oil exports failed to emit
tracking signals, red flags for
governments seeking evi-
dence of sanctions evasion. A1
 Days after Mattis was
given authority to send more
troops to Afghanistan at his
own discretion, the White
House sent guidance that ef-
fectively limits the number. A5
 The Trump administration
said it would give diplomacy
more time to resolve the
crisis over North Korea. A7
 Japan and the EU agreed
on a new trade deal a day
before Trump was expected
to clash with them over
how global trade works. A6
 The director of the Office
of Government Ethics said he
plans to resign, ending a ten-
ure marked by tangles with
the Trump administration. A4
 Illinois has a budget for the
first time in two years, ending
a standoff that threatened
to lead to a junk rating. A3
 Opioid painkillers are
prescribed far less often in
the U.S. than a few years
ago, researchers said. A3
 Foreign students accepted
to U.S. schools are planning
to enroll at a similar rate as
last year in most areas. A3
 A group of Hong Kong
activists pleaded guilty to
charges related to 2014 pro-
democracy protests. A16
CONTENTS
Business News..... B3
Crossword............... A11
Heard on Street...B12
Life & Arts...... A10-11
Mansion............. W1-10
Opinion.............. A13-15
s Copyright 2017 Dow Jones &
Company. All Rights Reserved
* * * * * *
NASDAQ 6089.46 g 1.0% STOXX 600 380.43 g 0.7%
Rifts Emerge as U.S. Seeks Afghanistan Strategy
OMAR SOBHANI/REUTERS
PRESENCE: Members of the military conducting a medevac exercise in Helmand province on Thursday.
The Trump administration is trying to develop a comprehensive new strategy for Afghanistan. A5
Ships Carrying Iranian Fuel
Raise Sanctions Concerns
BY SARAH MCFARLANE
AND BENOIT FAUCON
Ships transporting almost a
fifth of Irans oil exports in the
second half of last year either
turned off their radio-signal
tracking systems or gave mis-
leading information about the
origin of their cargo, red flags
for governments seeking evi-
dence of evasion of interna-
tional sanctions against Tehran.
Some 47 of 55 ships carry-
ing Iranian oil products from
Iran to the United Arab Emir-
HOMECOMING
SPINS COMING-
OF-AGE TALE
LIFE & ARTS, A10
To Game TV Ratings, SO LONG, CHEF BOYARDEE:
Dont Use Spell Check OLD FOOD BRANDS STRUGGLE
BY JOE FLINT
Boosting TV ratings is easy
for networks that dont mind
playing dumb.
In a game largely sanc-
tioned by TV-ratings firm Niel-
sen, television networks try to
hide their shows poor perfor-
mances on any given night by
Markets............. B11-12 forgetting how to spell.
Sports........................ A12
Streetwise................. B1 That explains the appear-
Technology............... B4 ance of NBC Nitely News,
U.S. News............ A2-4 which apparently aired on the
Weather................... A11
World News. A5-7,16
Friday of Memorial Day week-
end this year, when a lot of
people were away from their
> TVs. The retitling of NBC
Nightly News fooled Nielsens
automated system, which
listed Nitely as a separate
show.
Hiding the May 26 program
from Nielsen dramatically im-
FRIDAY, JULY 7, 2017 ~ VOL. CCLXX NO. 5
10-YR. TREAS. g 10/32 , yield 2.369%
ates for two U.A.E.-registered
companies failed to emit signals
from the system that transmits
their position and course, for
part or all of their journey, ac-
cording to an analysis of the
two firms shipments that was
completed for The Wall Street
Journal by Windward Ltd., an
Israeli firm that uses satellite
imaging to map shipping
routes.
The shipments, made by two
U.A.E.-registered traders, Silk
Road Petroleum FZE and Petro-
chemix General Trading LLC,
INSIDE
BUILD
YOUR OWN
VERSAILLES
MANSION, M1
proved the shows average
viewership that week. Instead
of falling further behind first-
place rival ABC World News
Tonight, NBC news narrowed
the gap.
Walt Disney Co.s ABC de-
clined to comment. The net-
work, though, groused last
month when NBC News inten-
tionally misspelled an entire
week of Nightly News broad-
casts. Altogether, NBC, which
is ranked second behind ABC
in ratings, has played the mis-
spell card 14 times since the
start of the 2016-17 television
season last fall.
NBC News said it broke no
rules. As is standard industry
practice, our broadcast is reti-
tled when there are pre-emp-
tions and inconsistencies or ir-
Please see TV page A9
WSJ.com HHHH $4.00
OIL $45.52 $0.39 GOLD $1,222.20 $1.80 EURO $1.1424 YEN 113.22
Buffett Makes
$9 Billion
Energy Play
Warren Buffetts Berkshire As part of Berkshire, Oncor
Hathaway Inc. struck a deal to would expand the portfolio of
buy one of the biggest power- Greg Abel, the 55-year-old
transmission companies in the chief executive of Berkshire
U.S., cementing electricity as Hathaway Energy. Mr. Abel is
one of the conglomerates considered a leading candidate
largest businesses. to succeed Mr. Buffett as CEO
Berkshire said it will buy of Berkshire.
bankrupt Energy Future Hold- Oncor is owned by Energy
Future, formerly TXU, which
By Dana Mattioli, was the subject of the biggest
Nicole Friedman leveraged buyout on record in
and Peg Brickley 2007. Laden with debt, Energy
Future filed for bankruptcy
ings Corp. for $9 billion in protection in 2014.
cash, giving Mr. Buffett its Oncor would mesh well
Texas-based Oncor. Including with Mr. Buffetts energy am-
debt, the deal has an enter- bitions. Berkshire Hathaway
prise value of about $18 bil- Energy, formerly known as
lion, according to a person fa- MidAmerican Energy Holdings
miliar with the matter. Co., contributed about 9.5% of
The acquisition, which The Berkshire Hathaways earnings
Wall Street Journal had re- of $24.07 billion last year.
ported was imminent on Berkshire Hathaway Energy
Thursday, would be one of said it is the second-biggest
Berkshires largest ever and its utility in the U.S. by 2016 net
biggest since the $32 billion income, serving customers in
purchase of Precision Cast- 18 western and Midwestern
parts Corp. in 2016. Please see ONCOR page A2
Trump Urges West
To Show Courage
BY PETER NICHOLAS morial to a 1944 Polish uprising
AND ANTON TROIANOVSKI against the Nazis. His speech
came a day before he was to
WARSAWIn a bid to meet for the first time with
broaden the nationalist vision Russian President Vladimir Pu-
he has long embraced, Presi- tin.
dent Donald Trump on Thurs- He exhorted the West to rec-
day described the West as ognize the existential peril em-
locked in a struggle it could bodied by terrorists who have
lose unless it can summon the struck repeatedly at centers of
courage to see it through. Western arts and culture, in-
Mr. Trump chose Poland as cluding Paris, London and New
the backdrop for a defining for- York.
eign policy speech of his early We are confronted by an-
accounted for 17% of Irans fuel- presidency, calling the countrys other oppressive ideologyone
oil and gas-oil exports during perseverance in World War II that seeks to export terrorism
the six-month period, according and afterward a model for and extremism all around the
to records compiled by the oil- Western nations that face sinis- globe, Mr. Trump said. Amer-
product traders. ter threats of their own today. Please see TRUMP page A7
The records, based on infor- The story of Poland is the
mation from state-run National story of a people who have  Federal ethics watchdog to
Iranian Oil Co. that shipping never lost hope, who have resign.............................................. A4
agents combine with their own never been broken, and who  G-20 meeting poses test for
information and provide to have never, ever forgotten who Merkel............................................ A6
traders, listed the vessels cargo they are, Mr. Trump said at  U.S. sticks to diplomacy on
as fuel oil or gas oil. Ira- Krasinski Square, site of a me- Pyongyang................................... A7
nian authorities didnt return
calls and emails seeking com-
ment about the shipments.
Please see SHIPS page A5
North Korea Still Open for Business
Despite sanctions imposed on Pyongyang, trade with other nations
has been enough to enable North Korea to amass the money and
technical know-how to develop nuclear weapons and missiles. A7
Top buyers of North Korean exports
$3.5 billion
3.0
China
2.5
2.0
1.5
1.0 India
SHOPPING 0.5
Pakistan
CHANNELS 0
Japan
Others
JOIN FORCES 2000 02 04 06 08 10 12 14 16
Note: Based on other countries' import data. Source: U.N. Comtrade
BUSINESS & FINANCE, B1
Big firms were slow to address threats of fresher fare, low-cost knockoffs
BY ANNIE GASPARRO AND SAABIRA CHAUDHURI kits failed to spot the threat and didnt inno-
vate in time.
Big Food is in big trouble. Anyone searching for macaroni and
For over a century, brands such as Kel- cheese, a childhood staple, can opt for fancy
loggs cereal, Campbells soup and Aunt pasta with organic ingredients or inexpen-
Jemima pancake mix filled pantries of Amer- sive store brands such as Kroger Co.s.
ican households that wanted safe, affordable Squeezed in the middle are Kraft Heinz Co.s
and convenient food. They provided compa- venerable blue-and-yellow boxes.
nies with reliable revenue growth from gro- The pressure has set off a bout of soul
cery shelves, and there was little reason to searching in the industry as well as some
mess with that formula. dramatic restructuring. Some companies are
Today, these giants are struggling with shedding underperforming brands, others
competition that is corroding business from have contemplated mergers. Nestl SA,
both ends. High-end consumers are shifting which said in June it was looking to sell its
toward fresher items with fewer processed U.S. confectionery business, is now the tar-
ingredients while cost-conscious shoppers get of an activist investor.
are buying inexpensive store brands. The Younger companies such as Chobani, the
makers of staples including Chef Boyardee Greek-yogurt maker, have taken market
canned pasta and Hamburger Helper meal Please see FOOD page A9
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
A2 | Friday, July 7, 2017 * ***** THE WALL STREET JOURNAL.

U.S. NEWS
Export Gains Shrink Trade Deficit Fed Governor Urges
BY BEN LEUBSDORF
Closing the Gap
goods than it exports, though
it runs a trade surplus for ser-
Housing-Finance Fix
WASHINGTONThe U.S. Monthly balance of U.S. trade in goods and services, in billions vices. BY RACHEL WITKOWSKI the largest mortgage lenders
trade deficit narrowed in May The overall trade deficit to- that sell loans to Fannie and
as exports rose to their high- $0 taled $504.79 billion in 2016, WASHINGTONFederal Re- Freddie, which repackage
est level in more than two or roughly 2.7% of economic serve governor Jerome Pow- mortgages as securities that
years. 10 output as measured by nomi- ell said there is an urgent need are insured if the loans de-
The foreign-trade gap in nal gross domestic product. for Congress to overhaul the fault.
goods and services narrowed 20 President Donald Trump housing-finance system, echo- The Senate Banking panel
2.3% from April to a season- campaigned for the White ing calls by some lawmakers is looking at ways to bring the
ally adjusted $46.51 billion in 30 House on skepticism about to pull Fannie Mae and Fred- government-sponsored enter-
May, the Commerce Depart- current U.S. trade agreements. die Mac out of government prises out of conservatorship,
ment said Thursday. 40 The fact is that the United conservatorship. including potentially creating
Imports fell 0.1% in May to States has trade deficits with The Feds regulatory point a government backstop if pri-
$238.54 billion, and exports many, many countries, and we person, Mr. Powell called for vate capital is depleted during
50
rose 0.4% from April. Total ex- cannot allow that to continue, Congress to look at ways to a crisis. Mr. Powell said his
ports were $192.03 billion in Mr. Trump said last week at a encourage more private back- remarks werent meant to
60
May, the strongest month for meeting with South Korean ing of Fannie and Freddie to support any specific proposal
overseas sales since April President Moon Jae-in. avoid a repeat of the taxpayer but cautioned about a sugges-
2015. 70 Looking only at trade in bailout during the financial tion to create some form of
The survey evidence sug- 2008 09 10 11 12 13 14 15 16 17 goods, U.S. deficits with China crisis. Trump administration additional government re-
gests that annual export Note: Seasonally adjusted and the European Union nar- officials and the Senate Bank- serve.
growth will accelerate from Source: Commerce Department THE WALL STREET JOURNAL. rowed in May from April but ing panel in charge of over- If Congress chooses to go
here, reflecting the strength of remained sizable. hauling the government-spon- in this direction, any such
the global economy and the a stronger world economy 2017, the value of U.S. imports The U.S. ran trade surpluses sored enterprises have guarantee should be explicit
slight depreciation of the U.S. driving an upswing in global rose 7.3% while U.S. exports during the month with the discussed such moves. and transparent, and should
dollar since the beginning of trade flows. increased 6.0% compared with U.K. and Latin America. We need to move to a sys- apply to securities, not to in-
the year, said Michael Pearce, The dollar has strengthened the year-earlier period. The U.S. economy has run tem that attracts ample stitutions, Mr. Powell said.
U.S. economist at Capital Eco- against other currencies since The overall trade deficit overall trade deficits for de- amounts of private capital to The reality is that the econ-
nomics, in a note to clients. 2014 but weakened since late was up 13.1% compared with cades, during both economic stand between housing-sector omy needs Fannie and Fred-
Data on international trade last year; a strong dollar the first five months of 2016. expansions and recessions, credit risk and taxpayers, Mr. die....So there is likely still an
can be volatile from month to makes U.S. products more ex- Export demand could which economists say reflects Powell said Thursday in pre- incentive to preserve the GSE
month, and the figures werent pensive for foreign customers. strengthen further headed into the fact that Americans con- pared remarks before the business if one of them goes
adjusted for inflation. Exports have shown the second half of the year. sume more than they produce American Enterprise Institute, bust.
The deficit had jumped in greater strength this year, in The Institute for Supply Man- relative to the rest of the a think tank. No single hous- Separately, he said the Fed-
April and even after narrowing part reflecting a pickup in agement said Monday that its world. ing-finance institution should eral Reserve is near comple-
in May it was larger than at global growth, Federal Re- index tracking new export or- To shrink or eliminate the be too big to fail. tion of a comprehensive pro-
any point last year. serve Chairwoman Janet Yel- ders at U.S. factories rose in gap, the U.S. would either have The Fed isnt responsible gram that would raise
Both imports and exports len said last month. June. to produce more or consume for the housing-finance sys- standards for most systemi-
have risen this year, reflecting In the first five months of The U.S. imports more less. tem, but it supervises some of cally important banks.

U.S. WATCH Wildfire Forces Evacuations in Colorado

COSBY CASE
Sex-Assault Retrial
Is Set for November
Entertainer Bill Cosby will be
retried on sexual-assault charges
starting Nov. 6, a Pennsylvania
judge ruled Thursday.
Last months trial in suburban
Philadelphia ended in a mistrial
when a jury couldnt reach a ver-
dict after six days of delibera-
tions. Montgomery County Dis-
trict Attorney Kevin Steele quickly
announced plans for a new trial.
Mr. Cosby, 79 years old, faces
three counts of indecent aggra-
vated assault and as many as
10 years in prison. Prosecutors
EMPLOYMENT
Hiring Fell in June
At Private Companies
Hiring at private U.S. employ-
ers slowed more than expected
in June, according to a report re-
leased Thursday.
Firms added 158,000 workers
in June, according to payroll pro-
cessor Automatic Data Processing
Inc. and forecasting firm Moodys
Analytics. Economists surveyed
by The Wall Street Journal ex-
pected an increase of 180,000.
The May total was revised to
230,000 from 253,000. The ADP
report is based on private payroll
data and government information.
HELEN H. RICHARDSON/ASSOCIATED PRESS

allege he drugged and molested Mark Zandi, chief economist

Andrea Constand, a former Tem-
ple University employee, at his
home in 2004. Mr. Cosby has
maintained his innocence and
said he had a romantic relation-
ship with Ms. Constand.
Mr. Cosby still faces about 10
civil lawsuits filed by other ac-
cusers, most of whom allege he
defamed them after they came
forward to claim he sexually as-
saulted them years earlier. He
has denied wrongdoing.
Scott Calvert
of Moodys Analytics, said in the
report that job growth remains
a stalwart between 150,000
and 200,000.
At this pace, which is double
the rate of labor force growth,
the tight labor market will con-
tinue getting tighter, he added.
Economists expect the U.S.
Bureau of Labor Statistics to re-
port Friday that nonfarm jobs SMOKY SKIES: A family watched Thursday as helicopters dumped water on a wildfire, trying to prevent the flames from spreading
rose by 173,000 in June from toward homes near Breckenridge Ski Resort and the nearby historic town. Hundreds of area residents and vacationers had to leave.
138,000 in May.
Justina Vasquez

ECONOMY
Service-Sector Firms Earthquake Shakes
Posted Gains in June State, Nearby Locales
MONTANA
ONCOR ruptcy proceedings. KKR &
Co., TPG and Goldman Sachs
Group Inc.s private-equity
arm led the $32 billion take-
Energy Future has been try-
ing to sell its 80% stake in On-
cor, but Texas regulators have
stymied attempts at deals by
Continued from Page One over of TXU, which became Hunt Consolidated Inc. of
Business at U.S. service pro- In what was likely the stron- states as well as in the U.K. Energy Future. When the deal Texas and Floridas NextEra
viders climbed in June, a sign the gest earthquake to hit Montana and Canada. was announced in 2007, the Energy Inc., leaving the com-
broadest segment of the econ- in more than half a century, a Mr. Buffett has lauded his buyers were betting that natu- pany mired in bankruptcy.
omy is gaining momentum after magnitude-5.8 temblor shook utilities businesses as invest- ral-gas prices would rise, but Berkshire was also a con-
a lackluster first half of the year. the state early Thursday. ments that require routine re- they tumbled instead amid a tender.
JOHN PETERSON/ASSOCIATED PRESS

A closely watched index of
nonmanufacturing activity rose
to 57.4 in June from 56.9 in May,
the Institute for Supply Manage-
ment trade group said. A reading
above 50 indicates expansion.
Service providers form the bulk
of the economy, covering indus-
tries such as construction, mining,
accounting and health care. Ser-
vice activity provides a snapshot
of the broader economys health.
There were no reports of in- investment but also generate boom in shale-gas production. Texas regulators said the
juries or serious damage. consistent returns. In addition The drop in natural gas Hunt-led deal included too
Mike Stickney, a seismologist to utilities, Berkshires busi- caused electricity prices to fall much financial engineering to
at the Earthquake Studies Office nesses include insurers and a in Texas, resulting in billions suit them, while NextEra was
with the Montana Bureau of railroad, and it also makes of dollars of losses for Energy rejected for insisting on over-
Mines and Geology in Butte, said large stock investments. Future after it took on massive riding much of the protections
the quake was probably the Utilities are also considered debt in the buyout. that prevented Energy Future
strongest in Montana since Oc- safe investments by ratings Texas regulators, worried from imposing excessive debt
tober 1964. Mr. Stickney didnt firms, helping support Berk- about what would become of on Oncor, and guaranteed the
believe the quake was seismi- shires overall credit rating. part of the states electricity Warren Buffett unit kept a separate board of
cally linked to more than 1,100 And the energy unit receives backbone in the hands of pri- directors.
smaller earthquakes in and tax credits for its investments vate-equity owners, had in- CreditSights analyst Greg

$9B
Thursdays report showed a jump around Yellowstone National in renewable energy that it sisted on shielding Oncor from Jones said the restrictions
in sales, a slight pickup in produc- Park over the past two weeks. can apply to the conglomer- the financial trouble that was were unlikely to be an issue
tion and a surge in companies re- The initial earthquakes epicen- ates massive balance sheet. to push Energy Future into with Berskshire. Berkshire
stocking their shelvessigns of ter was about 6 miles southeast We will continue to buy chapter 11 bankruptcy protec- will likely go to the regulators
stronger spending by Americans of Lincoln, according to the U.S. and build utility operations tion. Price Berkshire is paying for hat in hand and say, What can
and rising business optimism. Geological Survey. A magni- throughout the world for de- Mr. Buffett has dealt with Energy Future Holdings we do for you to make this
Every month we think we tude-4.9 quake rattled the same cades to come, Mr. Buffett Energy Future before, but his happen, rather than other
might have a little bit of a claw- area about five minutes later. The wrote in his 2014 letter to past experience with the com- utilities that were trying to
back here and yet we dontwe USGS noted seven other quakes shareholders. pany wasnt a success. Berk- say, Its our way or the high-
just keep chugging along, said An- ranging from magnitude 3.5 to Oncor is an electricity shire spent $2.1 billion in 2007 heard of Energy Future Hold- way, he said.
thony Nieves, head of the survey. 4.4 in the area over the next four mover, transmitting power on high-yielding Energy Fu- ings. Consider yourselves Terry Hadley, spokesman
The report could offer reas- hours, followed by three others. over 121,000 miles of lines ture Holdings bonds. It sold lucky; I certainly wish I for the Public Utility Commis-
surance to the Federal Reserve The USGS received reports of across the largest electrical- the bonds in 2013 and lost hadnt, Mr. Buffett wrote in sion of Texas, which was in-
about the economys health as it people feeling the initial earth- distribution network in Texas, $873 million pretax on the in- the letter. In a prior letter, he strumental in blocking the two
considers another increase in quake throughout Montana and according to the company. vestment, Mr. Buffett said in said he had totally miscalcu- prior deals for Oncor, declined
short-term interest rates and into Idaho, Washington, Wyo- Energy Future has spent his 2013 letter to sharehold- lated the gain/loss probabili- to comment on the regulatory
shrinking its asset portfolio. ming and Canada. the past three-plus years in ers. ties when I purchased the prospects.
Josh Mitchell Associated Press one of the largest-ever bank- Most of you have never bonds. Last year, Mr. Buffett closed
his largest deal ever when
Berkshire bought industrial
CORRECTIONS  AMPLIFICATIONS
THE WALL STREET JOURNAL
(USPS 664-880) (Eastern Edition ISSN 0099-9660) company Precision Castparts.
(Central Edition ISSN 1092-0935) (Western Edition ISSN 0193-2241) The billionaire investor also
Editorial and publication headquarters: 1211 Avenue of the Americas, New York, N.Y. 10036 has joined forces with Brazil-
Published daily except Sundays and general legal holidays. Supporters of Venezuelan ing to redraft the constitution. A law passed earlier this ian private-equity firm 3G
Periodicals postage paid at New York, N.Y., and other mailing offices.
President Nicols Maduro on The same photo appeared with year by New York state Capital Partners LP to help
Postmaster: Send address changes to The Wall Street Journal, 200 Burnett Rd., Chicopee, MA 01020.
Wednesday attacked lawmak- a World News article in some blocked a 5-cent fee on plastic create a global food empire,
All Advertising published in The Wall Street Journal is subject to the applicable rate card, copies of
which are available from the Advertising Services Department, Dow Jones & Co. Inc., 1211 Avenue of ers opposed to efforts to re- editions, where the first name bags in New York City from merging Kraft and Heinz and
the Americas, New York, N.Y. 10036. The Journal reserves the right not to accept an advertisers order. draft the constitution. The cap- of the photographer was incor- taking effect. A U.S. News arti- making an unsuccessful at-
Only publication of an advertisement shall constitute final acceptance of the advertisers order. tion with a Page One photo of rectly omitted from the credit. cle on June 26 about a back- tempt to buy consumer goods
Letters to the Editor: Fax: 212-416-2891; email: wsj.ltrs@wsj.com victims of the attack in some The credit should have read lash against plastic-bag bans giant Unilever PLC.
editions Thursday incorrectly Miguel Gutierrez/European incorrectly said the city had a An Oncor deal would still
NEED ASSISTANCE WITH YOUR SUBSCRIPTION? said the lawmakers were seek- Pressphoto Agency. fee on plastic bags. leave Berkshire with plenty of
CONTACT CUSTOMER SUPPORT.
cash to spend. The conglomer-
By web: customercenter.wsj.com; By email: wsjsupport@wsj.com
By phone: 1-800-JOURNAL (1-800-568-7625); Or by live chat at wsj.com/livechat Readers can alert The Wall Street Journal to any errors in news articles by emailing wsjcontact@wsj.com ate held $96.5 billion in cash
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For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
THE WALL STREET JOURNAL.
Illinois House Overrides Veto
To Pass Budget, Ending Standoff
Illinois has a budget for the
first time in more than two
years, ending a standoff that
threatened to downgrade the
states debt to junk status and
was wreaking havoc with cities,
colleges and school districts
across the state.
The states House of Repre-
sentatives, led by Democratic
Speaker Michael Madigan, voted
Thursday to override Republican
Gov. Bruce Rauners vetoes of
revenue and spending measures
the chamber passed Sunday.
The Houses repudiation of
the governor marked the final
hurdle in enacting a budget for
Illinoisthe first state in the
union to have gone without a
budget for more than a year
since the Great Depression. Illi-
nois entered its third fiscal year
without a budget on July 1.
The people in this chamber
did not do what was easy today,
but they did do what was right
for the future of our state, Mr.
Madigan said on the House floor
following the votes.
Today was another step in
Illinois never-ending tragic trail
of tax hikes, Mr. Rauner said in
Foreign Student Admissions Keep Pace
Texas colleges see a
drop in international
enrollments, according
to one survey
BY DOUGLAS BELKIN
AND NEWLEY PURNELL
International students ac-
cepted to U.S. schools are
planning to enroll at a similar
rate as last year in most areas
except the southern part of
the country, especially Texas,
according to data from 165
U.S. colleges and universities.
The enrollment numbers
help dispel fears that Presi-
dent Donald Trumps critical
comments about illegal immi-
grants and his ban on refugees
from six majority Muslim
countries would scare interna-
tional students away.
I think people just seem to
be more cautious these days
about the political climate in
the U.S., said Allan Goodman,
president of the Institute of
International Education, a
New York-based nonprofit that
advocates for international ed-
ucation, which conducted the
survey of schools. I think you
have to weigh that against the
Prescription Rate
For Opioids Falls,
Researchers Say
BY BETSY MCKAY
Opioid painkillers are pre-
scribed far less often in the
U.S. than a few years ago,
showing that moves to limit
their availability are having a
positive effect, federal re-
searchers said in an analysis
released Thursday.
But the amount of opioids
prescribed in 2015 was still
more than triple the level in
1999, and varied widely by
county, according to the anal-
ysis by the Centers for Dis-
ease Control and Prevention
illustrating how ubiquitous
the drugs still are.
This is just the beginning
of the dip, Anne Schuchat,
the CDCs acting director, said
in an interview. Its like were
at 100 degrees and weve gone
to 95, but we want to go to
60. We have a lot more work
to do here.
Analyzing data represent-
ing 88% of U.S. prescriptions,
the CDC found that the
amount of opioids prescribed
per capita peaked in 2010,
then declined by 18% by 2015.
The opioid prescription rate
declined by 13.1% between
2012 and 2015, the CDC said.
Yet there is still a huge
variation in prescribing pat-
terns from one county to an-
other, including in states that
have taken steps to stem the
flow, Dr. Schuchat said.
Counties at the high end of
the spectrum in 2015many
of which are in Virginia, Ten-
nessee and Kentuckydis-
pensed more than six times
the number of prescriptions
* *
a statement after the vote. It
proves how desperately we need
real property tax relief and term
limits.
The new budget funds a
more than $36 billion spending
proposal with a roughly $5 bil-
lion income-tax increase. The
state brings in roughly $32 bil-
lion a year.
The plan also includes a pro-
vision that would allow Illinois to
borrow billions of dollars
through the sale of bonds.
Those funds would go toward
paying down the $14.6 billion in
unpaid bills the state has ac-
crued since 2015.
Illinois bond prices have
climbed this week as lawmakers
made progress toward a budget.
A 2014 Illinois general obligation
bond maturing in 2030 traded at
99.5 cents on the dollar Thursday,
up from 99 cents Wednesday.
Ahead of the House action
Thursday, the Capitol was put
on lockdown while a Hazmat
crew investigated reports of a
woman throwing an unidentified
white powder into the offices of
the governor and other areas.
Quint Forgey
fact there is such enormous
good will in the world toward
America.
More than one million inter-
national students were enrolled
in U.S. schools during the
2015-16 academic year, accord-
ing to the IIE. International
students contributed more
than $35 billion to the U.S.
economy in 2015, according to
the U.S. Department of Com-
merce. There are 85% more in-
ternational students studying
at U.S. institutions than were
reported a decade ago.
U.S. colleges and universi-
ties have become increasingly
dependent on the revenue
from international students.
Public schools often charge in-
ternational students two to
three times what domestic
students pay, helping offset
the decline in state funding for
public universities since the
credit crisis and the demo-
graphic dip in college-aged
students.
The rate of international
students accepted to a U.S.
school that plan on enrolling
held steady in the West and
Northeast and declined by 5
percentage points each in the
South and Midwest.
Among the four states that
as counties at the lower end,
the CDC said. Nearly every
state has counties with high
levels of opioid prescriptions,
Dr. Schuchat said.
The opioid crisis is far from
easing. Addiction is surging,
and overdose deaths continue
to rise, because as access to
prescription painkillers has
tightened, abuse of heroin and
other illicit street drugs has
taken off.
Gary Mendell, founder,
chairman and chief executive
of Shatterproof, a nonprofit
organization that advocates
for public-health measures to
stem addiction, said the CDC
should set a goal for the num-
ber and size of opioid pre-
scriptions that may be writ-
ten, and state and county-
level prescribing data should
be released quarterly, within a
month of the end of each
quarter.
That would put a spotlight
on whos doing well and whos
not doing well, he said.
National guidelines on opi-
oid use and state prescription
drug-monitoring databases
have helped to reduce the
number of prescriptions, Dr.
Schuchat said.
States such as Kentucky
and Ohio now require clini-
cians to check the databases
to see whether a patient has
been receiving opioids else-
where before they write a pre-
scription.
Prescriptions have also
dropped in Florida and other
states that cracked down on
pain clinics that dispense
large numbers of opioid pre-
U.S. NEWS
The Capitol was put on lockdown while a Hazmat crew investigated reports of an unidentified white powder in the governors offices.
enroll the most international
students, California saw a two
percentage point increase in
yield, which refers to the en-
rollment rate of admitted stu-
dents. New York and Massa-
chusetts held steady and Texas
fell by 9 percentage points.
The study didnt shed any
light on the reason schools in
Texas experienced such a
steep decline but many factors
are in play.
International students are
asking questions about how
hard it will be to get a stu-
dent visa, they are struggling
to discern how much a U.S.
degree will help their careers
and whether there will be vi-
sas available for them to
work here.
They also have to juggle the
strength of the dollar com-
pared to their native currency
and broader economic factors
in their home countries.
Texas may have been dis-
proportionately impacted by
the decline in oil prices which
may have slowed interest
among international students
who have historically headed
there to study oil industry-re-
lated majors.
Dr. Goodman of the IIE be-
lieves that in addition, at least
Opioid Landscape
Opioid prescribing has declined across much of the U.S., particularly in states such as Ohio and Florida,
which have made efforts to reduce abuse.
Change in prescribed opioids per capita, 2010-2015
Increase Decrease
Note: Increase and decrease levels are dened as a change of greater than
10% in prescribed morphine milligram equivalents per capita from 2010-2015.
Source: QuintilesIMS, Centers for Disease Control and Prevention
scriptions, she said.
Yet within these states
there are counties that still
have large amounts of opioids
prescribed.
That really highlights the
fact that combating the opioid
epidemic takes a lot of local
efforts and tailored ap-
proaches, said Yuhua Bao, an
associate professor of health-
care policy and research in
psychiatry at Weill Cornell
Medical College, who has
studied the impact of pre-
scription drug-monitoring
programs.
Dr. Schuchat said the CDC
hopes the county-level data
will help states and clinician
groups target their interven-
tions, and that CDC prescrib-
ing guidelines issued last year
will start to lead to consen-
sus and less use where its not
indicated.
States Sue DeVos
Over College Rules
A coalition of Democratic
attorneys general from 18
states and the District of Co-
lumbia announced Thursday a
lawsuit against the U.S. Educa-
tion Department and Education
Secretary Betsy DeVos regard-
ing the end of Obama-era rules
intended to punish colleges and
universities that use deceptive
recruiting tactics and charge
high prices for dubious degrees.
The complaint, filed in U.S.
District Court in Washington,
D.C., alleges that the Education
Department violated federal
some of the declines are
rooted in a perception of reli-
gious and racial intolerance
and in some cases, gun poli-
cies. Last year, a Texas law
went into effect which allowed
concealed handguns on public
university campuses.
Despite the large drop this
year, Texas still has relatively
high yield among international
students, largely because of its
proximity to Mexico.
Stable level Insufcient data
Persistent Condition
The Centers for Disease Control and Prevention reports progress in
efforts to reduce opioid prescriptions, but data show the task is far
from complete.
Doctors are writing fewer
prescriptions in recent years...
100 prescriptions per 100 persons
80
60
40
20 High-Dose
0 0
2006 10 15
Note: Prescribing rate includes multiple prescriptions per year per person.
Sources: QuintilesIMS; Centers for Disease
Control and Prevention
law by abruptly rescinding its
Borrower Defense and gain-
ful employment rules, which
were designed to hold abusive
higher education institutions
accountable for cheating stu-
dents and taxpayers out of bil-
lions of dollars in federal loans.
U.S. Department of Educa-
tion press secretary Liz Hill
slammed the suit.
With this ideologically
driven suit, the state attorneys
general are saying to regulate
first, and ask the legal ques-
tions laterwhich also seems
to be the approach of the prior
administration that adopted
borrower-defense regulations
through a heavily politicized
process and failed to account
Students from other parts
of the world are increasingly
leery about the state.
I think there is a PR thing
that might be happening, said
Teri Albrecht, director of in-
ternational student scholar
services at the University of
Texas at Austin, which saw a
small decline in undergraduate
admissions this year after
years of steady growth. Im
sure weve had students and
THE WALL STREET JOURNAL.
...and average daily prescription
doses are getting lower.
75 morphine milligram equivalent
50
25
2006 10
THE WALL STREET JOURNAL.
Friday, July 7, 2017 | A3
JUSTIN L. FOWLER/THE STATE JOURNAL-REGISTER/ASSOCIATED PRESS
for the interests of all stake-
holders, Ms. Hill said.
The rules were set to go
into effect on July 1 but were
frozen by Mrs. DeVos in May.
She cited a California lawsuit
that sought to block them.
The rules were completed
late last year, following the col-
lapse of Corinthian Colleges
Inc., a national for-profit chain.
For-profit schools, which gener-
ally specialize in two-year de-
grees and career certificates,
taught about 10% of all under-
graduates at their peak around
2009 but have been a dispro-
portionate driver of the run-up
to $1.3 trillion student debt and
a sharp rise in defaults.
Douglas Belkin
scholars that have concerns
and might have looked else-
where to states that dont
have those laws in place.
Among the Southern
schools to feel the pinch is
Tennessee Technological Uni-
versity. Associate Provost
Mark Stephens said the
Cookeville, Tenn., school re-
ceived roughly 15% fewer in-
ternational applications this
year than last.
Painkiller
Is Pulled
From U.S.
Market
BY JEANNE WHALEN
Endo International PLC
said it would comply with a
Food and Drug Administration
request to remove the opioid
painkiller Opana ER from the
U.S. market, which the FDA
said was necessary due to the
medications links to injection
drug abuse.
The FDA last month asked
Endo to stop selling the drug,
in what the agency called its
first effort to remove an opi-
oid pain drug from the market
over abuse concerns.
Endo on Thursday said it
would work with the FDA to co-
ordinate the orderly removal of
Opana ER in a manner that looks
to minimize treatment disrup-
tion for patients. The company
said it continues to believe in
the safety, efficacy, and favor-
able benefit-risk profile of Opana
ERwhen used as intended.
Endo also said it has taken sig-
nificant steps over the years to
combat misuse and abuse.
The FDA said it was con-
cerned about Opana ERs safety
because data showed a 2012
reformulation of the pill caused
more people to abuse the pain-
killer by liquefying and inject-
ing it. Abuse of the drug via in-
jection was linked to a serious
outbreak of HIV and hepatitis
C, the FDA said. The outbreak
occurred in Indiana in 2015.
Endo, based in Dublin, Ire-
land, said it expects to record
a pretax charge of $20 million
15 in the second quarter to write
off the drugs remaining net
book value. Opana ER had
sales of $159 million in 2016.
 For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
A4 | Friday, July 7, 2017
Trump Probe Hires Range of Talent Federal
BY DEL QUENTIN WILBER
Ethics
AND ARUNA VISWANATHA
In a few weeks on the job,
special counsel Robert Mueller
has assembled an elite team of
lawyers with expertise in na-
tional security, public corrup-
tion and financial crimes, sug-
gesting he is taking a broad
view of his mandate to probe
Russias alleged meddling in
the 2016 election.
Since being tapped by Dep-
uty Attorney General Rod
Rosenstein in May, Mr. Muel-
ler has added 15 attorneys to
his staff as well as an undis-
closed number of administra-
tive employees, according to
spokesman Peter Carr.
Mr. Carr confirmed the iden-
tities of 13 members of the
team, which legal observers and
former Justice Department at-
torneys of both parties likened
to an all-star lineup of law-
yers with reputations for tenac-
ity and thoroughness.
He is assembling a pretty
darned impressive cohort of
government lawyers, said
Stephen I. Vladeck, a professor
at University of Texas School
of Law.
Mr. Carr declined to com-
ment on the investigation or
staffing decisions beyond con-
firming the 13 lawyers identi-
ties, which were provided by
people familiar with the in-
quiry. He said the office re-
cently submitted a budget and
expects to release a list of ex-
penditures every six months.
Mr. Mueller, a former FBI
director, was tapped as special
Beyond This World
MICHAEL CIAGLO/ASSOCIATED PRESS
SPACE PLANS: Vice President Mike Pence, who was tapped to lead the newly revived National Space Council, toured the Kennedy Space Center in Florida on Thursday
and pledged to begin a new era of U.S. leadership in space. Our nation will return to the moon, he said, and we will put American boots on the face of Mars.
WASHINGTON WIRE
SCALISE UPDATE
Surgery Went Well,
Hospital Says
House Majority Whip Steve
Scalise (R., La.), who has been
hospitalized for more than three
weeks for a gunshot wound, un-
derwent surgery one day after
he was readmitted to the inten-
sive-care unit following new con-
cerns about infection.
MedStar Washington Hospital
Center said on Thursday that
Mr. Scalise had undergone sur-
gery for treatment of infection
and had tolerated the procedure
well. He had been in fair condi-
tion days earlier, but his status
was changed to serious by
Wednesday due to worries
about infection. Doctors said he
remained in serious condition
Thursday.
Mr. Scalise, 51 years old, was
shot in the hip June 14 at a
baseball practice the day before
a charity game between Republi-
cans and Democrats. The gun-
man was shot dead by police.
Siobhan Hughes
CONGRESS
Senators to Consider
Labor Board Picks
The Senates labor committee
scheduled a July 13 confirmation
hearing to consider President
Donald Trumps two nominees
for vacant spots on the National
Labor Relations Board.
Special counsel Robert Mueller, right, after a Senate briefing on the Russia investigation in June.
counsel not long after Presi-
dent Donald Trumps abrupt
firing of James Comey as FBI
director. Mr. Comey had been
spearheading the federal in-
vestigation into the Russian
interference.
The Federal Bureau of In-
vestigation as well as Senate
and House panels are scruti-
nizing whether Trump associ-
ates coordinated with Russian
hackers in interfering with the
election.
Mr. Trump has called the
investigation a witch hunt,
and Russia has denied med-
At the hearing, senators are
slated to consider Republican at-
torneys Marvin Kaplan and Wil-
liam Emanuel for seats on the
five-member board that referees
disputes between unions and
employers. There have been two
Democrats and one Republican
on the board since last year.
Some business groups have
expressed concern about linger-
ing vacancies on the board, one
of several Washington bodies
without a full complement of
appointed officials.
Eric Morath
HEALTH CARE
McConnell Addresses
Need for Limited Bill
A bill focused on buttressing
the nations insurance market-
places will be needed if the full-
fledged Republican effort to re-
peal much of President Barack
Obamas health-care law fails,
Senate Majority Leader Mitch
McConnell (R., Ky.) said Thurs-
day.
It was one of his most ex-
plicit acknowledgments that his
partys top-priority drive to erase
much of Mr. Obamas landmark
2010 statutes might fall short.
If my side is unable to agree
on an adequate replacement,
then some kind of action with
regard to the private health in-
surance market must occur, Mr.
McConnell said at a Rotary Club
lunch in southern Kentucky.
Associated Press
P W L C 10 11 12
dling in the election. Mr.
Trump and some of his allies
have questioned the impartial-
ity of Mr. Muellers hires.
Twelve of the 15 lawyers
are Justice Department or FBI
employees, and are expected
to return to their old jobs
when the investigation is com-
pleted. The other three
worked with Mr. Mueller at his
law firm of WilmerHale, which
he left upon being named spe-
cial counsel.
Mr. Muellers prosecutors are
working closely with FBI agents
as part of a broad investigation
On Health Bill, Senator Gets an Earful
BY MICHELLE HACKMAN
PALCO, Kan.U.S. Sen.
Jerry Moran is usually a reli-
able supporter of his partys
leadership, but he spent more
than an hour Thursday poking
holes in the GOP health bill at
an overcrowded forum in this
town of 278 people.
As more than a hundred of
Mr. Morans constituents from
across the state peppered him
with questions about the Sen-
ate bill, which he said he would
oppose, he outlined a range of
concerns, from the severity of
its Medicaid cuts to the ways it
would affect people with pre-
existing medical conditions.
One attendee, Cheryl
Hofstetter Duffy, an English
professor from nearby Hays,
asked Mr. Moran if he would
consider building on the Af-
fordable Care Act, known as
Obamacare, rather than re-
pealing it. I dont think any of
us who support the ACA think
its perfect, Ms. Duffy said.
Why not work together to
take what was a start and in
my view an improvement, and
make it better?
Mr. Moran agreed. On the
broad array of things, we have
no choice but to work together
and find a solution, he said.
As such exchanges sug-
gested, GOP leaders so far
dont appear to be getting the
response they had wanted
during Congresss recess. None
H T G K B F A M 1 2 3 4 5 6 7 8 9 O
U.S. NEWS
exploring not only Russias in-
terference but any potential
crimes associated with it.
So far, Mr. Mueller has fo-
cused on adding lawyers with
a background in handling com-
plex cases involving public
corruption, national security
and financial fraud.
Among them are Andrew
Goldstein, former chief of the
public corruption unit at the
U.S. attorneys office for the
Southern District of New York;
Zainab Ahmad, a federal prose-
cutor in New York who has won
praise for tackling tough terror-
of the nine Republicans oppos-
ing the health bill have pub-
licly discussed a change of
heart; one additional Republi-
canSen. John Hoeven of
North Dakotasaid Thursday
that he, too, was opposed.
Senate Majority Leader
Mitch McConnell (R., Ky.), who
is scrambling to assemble a
revised version that can at-
tract more support, can afford
to lose only two of the cham-
bers 52 Republicans and still
pass the bill.
Mr. McConnell, speaking in
Glasgow, Ky., said Thursday
that if the GOP bill fails, Con-
gress will have to pass legisla-
tion to strengthen the nations
insurance marketplaces, ac-
Sen. Jerry Moran (R., Kan.) speaking to the media after facing
tough questions from his constituents on Thursday.
I X X ** THE WALL STREET JOURNAL.
ism cases; and Andrew Weiss-
mann, who led the fraud section
of the Justice Departments
criminal division, where he
Watchdog
oversaw the departments probe
of the collapse of Enron Corp.
Former Justice Department
To Resign
officials also cited Mr. Muel- BY REBECCA BALLHAUS
lers recruitment of Michael
Dreeben, an appellate lawyer Office of Government Ethics
in the office of the U.S. Solici- Director Walter Shaub said
tor General. Mr. Dreeben is Thursday he plans to resign
considered one of the depart- this month, ending a tenure
ments foremost legal experts. that was marked by frequent
Mr. Trump told Fox News tangles with the Trump ad-
he was concerned that Mr. ministration.
Muellers prosecutors were The great privilege and
Hillary Clinton supporters honor of my career has been to
and that Mr. Mueller and Mr. lead OGEs staff, Mr. Shaub
Comey were friends. Mr. wrote in a letter to the presi-
Comey was a top Justice offi- dent that the director posted to
JOSHUA ROBERTS/REUTERS
cial in the George W. Bush ad- his Twitter account. They are
ministration when Mr. Mueller committed to protecting the
was the FBI director; both are principle that public service is a
Republicans. public trust, requiring employ-
Newt Gingrich, a close ees to place loyalty to the Con-
Trump ally, tweeted last stitution, the laws, and ethical
month that Republicans are principles above private gain.
delusional if they think the Mr. Shaub said he would re-
special counsel is going to be sign on July 19, six months be-
fair because some of Mr. fore his term was set to con-
Muellers attorneys have do- clude. He plans to join the
nated to Democrats. Campaign Legal Center as se-
At least seven members of nior director of ethics, accord-
Mr. Muellers team have given ing to the group, which advo-
to Democratic candidates, in- cates for transparency and
cluding to the presidential ethics in government.
campaigns of Mr. Obama and In the months since Presi-
Mrs. Clinton, according to Fed- dent Donald Trump took of-
eral Election Commission re- fice, the GOP president has re-
cords. At least oneJames peatedly clashed with Mr.
Quarles, a member of the Wa- Shaub over issues including
tergate Special Prosecution the steps Mr. Trump took to
Forcehas donated to politi- distance himself from his busi-
cians in both parties. ness empire and his adminis-
Rebecca Ballhaus trations disclosure of ethics
contributed to this article. waivers for former lobbyists
serving in the White House.
Mr. Shaub said in an email
to The Wall Street Journal
that he hadnt been pushed
out by the White House.
He said he was leaving be-
fore the end of his term be-
cause he felt the Campaign Le-
gal Center would offer him the
best platform and he wanted to
take the job before it was filled.
The new role, he said, will al-
low greater freedom to push for
changes to federal ethics rules.
The White House said
Thursday that the president
accepted Mr. Shaubs resigna-
tion and appreciates his ser-
vice. Mr. Trump plans to
nominate a successor in short
order, the White House said.
The Office of Government
Ethics aims to prevent conflicts
of interest for government em-
ployees but has limited means
to enforce federal ethics rules.
Soon after Mr. Trumps elec-
tion victory, Mr. Shaub made it
clear that he wouldnt hesitate
to criticize Mr. Trump over
ethics issues. In November, the
ethics office sent a series of
tweets at Mr. Trump urging
him to divest fully from his
business interests.
In January, about 10 days
before the inauguration, Mr.
Shaub denounced as insuffi-
cient Mr. Trumps proposal to
guard against conflicts of inter-
est, saying it did not comport
with the tradition of our presi-
dents over the past 40 years.
cording to the Associated Press. including public hearings and
Sen. Chuck Schumer of New amendments from both sides.
York, the chambers Demo- He spoke repeatedly about fix-
cratic leader, seized on those ing or repairing the law, saying
comments. Its encouraging it has benefited some people.
that Sen. McConnell today ac- For Mr. Moran, the first
knowledged that the issues GOP senator to sponsor legis-
with the exchanges are fixable lation repealing the ACA after
and opened the door to bipar- its passage in 2010, his stance
tisan solutions to improve our marked a stark shift. Uproot-
health-care system, he said. ing the law was Mr. Morans
At Mr. Morans town-hall central campaign pledge in
meeting, no one spoke out in 2014 when he served as chair-
support of the Republican bill, man of the Senate Republican
though one voter sharply criti- campaign arm that helped the
cized the 2010 law, calling it party retake the chamber.
socialized medicine. Mr. Morans decision to dis-
Mr. Moran said that rather tance himself from the GOP
than continue to push a flawed bill illustrates the depth of Mr.
bill, GOP leaders should pursue McConnells challenge because
negotiations with Democrats, he is considered close to the
party leadership.
Hes not one of those prob-
lematic Republicans you tend
to think of, said Patrick
Miller, a political-science pro-
fessor at the University of
Kansas. This is weird for him.
Hes a team player.
Across the country, Mr. Mo-
ran was one of three Senate
Republicans to hold town-hall-
style meetings this week,
JOHN HANNA/ASSOCIATED PRESS
along with Sens. Bill Cassidy
of Louisiana and Ted Cruz of
Texas. In the absence of such
public events, the laws sup-
porters have held protests
outside senators home-state
offices and blanketed airwaves
with advertisements.
Stephanie Armour
contributed to this article.
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
THE WALL STREET JOURNAL.
Pentagon Curbed on Afghan Troop Level
White House memo
sets conditions amid
internal divisions over
strategy and goals
BY DION NISSENBAUM
WASHINGTONA few days
after President Donald Trump
gave his Pentagon chief the
OMAR SOBHANI/REUTERS
unilateral authority last month
to send thousands of American
troops to Afghanistan at his
own discretion, the White
House sent classified guidance
that effectively limits the
number of forces.
The memo, sent by national
security adviser H.R. McMaster
to a small group of administra-
tion officials, said that the
president would let Defense
Secretary Jim Mattis send no
more than 3,900 troops to Af-
ghanistan without coming back
to confer with the White
House, according to people fa-
miliar with the document.
The conflicting messages re-
flect divisions that have surfaced
in the Trump administration as
it tries to develop a comprehen-
sive new strategy for Afghani-
stan, amid concerns about div-
ing deeper into a 16-year-old
conflict that has claimed more
than 2,400 American lives and
Turkey
Detains
Rights
Workers
BY MARGARET COKER
Turkish police have de-
tained 10 senior human-rights
workers, including the head of
Amnesty Internationals Tur-
key chapter and two Europe-
ans, during a training confer-
ence outside Istanbul, the
head of the international or-
ganization said.
Amnesty says the activists
are being investigated on alle-
gations of membership in a
terror organization after po-
lice on the tourist island of
Buyukada interrupted a train-
ing session on digital security
late Wednesday. The group, in-
cluding the German and Swede
who were leading the training,
is being held in separate de-
tention facilities, the organiza-
tion said.
Turkish authorities didnt
reply to requests to comment
about the reasons for the de-
tentions.
Amnesty said their chapter
head, Idil Eser, was remanded
in custody for seven days. The
identities of the Europeans
havent been released, and it
is unknown whether they have
received consular assistance.
Turkey is currently under a
state of emergency that gives
authorities extraordinary pow-
ers to detain suspects without
access to a lawyer for ex-
tended periods. The state of
emergency also bans most
public political gatherings and
compels groups to inform po-
lice of private meetings of all
kinds organized in hotels or
conference centers.
SHIPS
Continued from Page One
While there is no penalty for
not using the systems, shipping
guidelines advise ships to use
tracking systems to avoid colli-
sions between vessels or locate
them if they need to be rescued.
Sometimes ships turn of their
tracking systems to evade pi-
rates, said Andrew Bardot, chief
executive of IGP&I, an associa-
tion of marine liability insurers.
But this tactic can also be
used to hide the genuine details
of a voyage so as to enable the
breach of sanctions, said Pot-
tengal Mukundan, director of
the International Maritime Bu-
reau, a London-based trade
body set up to fight maritime
crime and malpractice.
The U.S. government is ana-
lyzing ship movements in the
Persian Gulf for any attempts to
circumvent bans on funding
Irans weapons programs or
clearing payments for Iranian
oil through the U.S. financial
system, a U.S. official said.
U.S. officials said they
werent familiar with the par-
* * * *
Marines inside their base in Afghanistans Helmand province.
There are now around 8,400 American forces in the country.
cost the U.S. $2.4 trillion.
Mr. Mattis said he hopes to
present a plan to the White
House by mid-July that will
give the U.S.-led coalition the
forces it needs to blunt Tali-
ban momentum.
The rise of Islamic State in
Afghanistan and the Afghan
armys failure to keep Taliban
forces from gaining momentum
have created more urgency in
Washington for a new strategy
in a conflict U.S. officials say is
at a dangerous stalemate.
But the strategic planning is
tangled in disagreements be-
tween factions in the White
Discontent Grows Among Israels Bedouin
MIDDLE EAST
CROSSROADS
By Yaroslav Trofimov
WADI NAAM, IsraelThis
sprawling village of tin huts
and tents, home to 5,000
people within sight of sky-
scrapers of the southern Is-
raeli city of Beer Sheva, offi-
cially doesnt exist.
Neither do some 45 other
unrecognized villages scat-
tered in the area, which is
home to nearly
half of the
240,000 Bed-
ouins of Is-
raels Negev
Desert. With
the exception
of state
schools, they receive almost no
government services: no public
transport, no electricity, no
sewage treatment, no water.
The Israeli government says
places like Wadi Naam are ille-
gal squats on state land, and
demolitions are frequent. Is-
rael wants to relocate resi-
dents to purpose-built Bedouin
towns nearby. The Negev Bed-
ouin, who are Muslim Arabs
and hold Israeli citizenship, in-
sist that they have customary
rights to their ancestral
grounds. Family leaders say
they would rather remain in
their huts than move to the
overcrowded townships.
We were here first. But the
state wants to cram as many of
our people as possible into as
little land as possible, said At-
ticular shipments identified by
the Journal.
This scrutiny comes amid
uncertainty in the U.S. about
the future of the 2015 multina-
tional agreement in which Iran
pledged to scale back its nu-
clear program in return for the
lifting of most international
sanctions.
President Donald Trump has
cast doubt on whether his ad-
ministration will continue to
support his predecessors com-
mitment to the deal.
While the nuclear agreement
lifted many obstacles to doing
business with Iran, the U.S.
maintains sanctions that make
it difficult to trade Iranian oil.
A shipowner, the ships mas-
terthe person responsible for
the navigation of the vesselor
the trader who chartered the
vessel could give an instruction
to shut off the automatic identi-
fication system, or AIS. U.S. in-
vestigators would likely look
into the traders responsibility
in such situations in addition to
the shipper, said Richard
Nephew, who served as deputy
coordinator for sanctions policy
at the State Department from
2013 to 2015 and is now a se-
WORLD NEWS
House and across the adminis-
tration. They differ on what the
U.S. goals should be in Afghani-
stan, whether to jump-start
peace talks with the Taliban
and how much pressure to put
on Pakistan, according to cur-
rent and former U.S. officials.
Administration officials said
Mr. Trumps move last month
handing Mr. Mattis the author-
ity to decide how many troops
to send to Afghanistan was an
outgrowth of the presidents be-
lief that the White House
shouldnt micromanage wars.
Mr. Mattis announced Mr.
Trumps decision in a statement
A Bedouin woman yelled at Israeli policemen following the destruction of houses in the village of Umm Hiran in January.
tia el-Assam, the chairman of
the council of unrecognized
Bedouin villages in the Negev.
The majority of the Bedouin
want to be part of the state,
but its the state that keeps
pushing them away.
A
s disaffection roils Ne-
gevs fast-growing Bed-
ouin community, this
conflictcombined with the
spread of more conservative
Islam amid high unemploy-
ment and crimeis creating
new tensions in Israels south-
ern underbelly. Already, a Bed-
ouin teacher and a policeman
were killed when police moved
to demolish buildings in the
unrecognized village of Umm
Hiran in January.
If this goes on like this,
there will be an intifada in
the Negev, said Youssef al
Ziyaddin, one of the leaders
of Wadi Naam.
The Negev Bedouin account
for roughly one-third of the
Ebb and Flow
Sanctions on Iran hit the country's oil industry hard, but the sector
rebounded with a nuclear deal implemented in January 2016.
Iranian crude oil production
4.5 million barrels a day
4.0
3.5
3.0
2.5
July 2012
2.0
The U.S. and the
1.5 EU impose
additional
1.0 sanctions on
Iran's oil exports
and banks
0.5
0
2007 08 09 10 11 12
Source: International Energy Agency
nior research scholar at Colum-
bia Universitys Center on
Global Energy Policy.
In most cases we assume
its not plausible that a trader
would be ignorant of any at-
tempts to avoid international
monitoring of ship movements
especially if it occurs on multi-
Long War
Approximate number of U.S. troops deployed to Afghanistan
100,000
80,000
60,000
40,000
20,000
0
2002
Source: U.S. Central Command
June 14, saying it will enable
our military to have greater
agility to conduct operations.
The subsequent memo lim-
iting troop levels came as a
surprise to some administra-
tion officials. The White
Houses National Security
Council declined to comment.
Dana White, the Pentagons
chief spokeswoman, said she
couldnt discuss details of any
classified memos, but sug-
gested that the troop number
isnt as important as the
broader strategy.
The Pentagon has been
weighing options to send be-
Negevs current population.
They are related by tribal links
with the Bedouin of nearby
Jordan, Saudi Arabia and
Egypts Sinai peninsula.
In Sinai, similar grievances
over neglect and discrimina-
tion by the Egyptian govern-
ment have spurred an insur-
gency that has since been
hijacked by Islamic Stateand
that the Egyptian military has
been unable to eradicate.
A similar scenario could
play out in southern Israel,
cautioned Talab Abu Arar, the
only Negev Bedouin in the Is-
raeli parliament and a former
mayor of the town of Arara.
The negligence of the
Egyptian governments, their
failure to provide full rights to
the Bedouin, have pushed the
Bedouins there toward vio-
lence, Mr. Abu Arar said. I
have repeatedly warned the
government here: the continu-
ation of your policy of unjustly
treating the Bedouin will also
January
2016
Lifting of
sanctions
begins
13 14 15 16 17
THE WALL STREET JOURNAL.
ple shipping companies with
the same trading company, he
said.
Oil traders typically monitor
the movements of their cargoes
and would be in a position to
know if the AIS isnt transmit-
ting location, shipping and
sanctions experts said.
2010
THE WALL STREET JOURNAL.
tween 2,000 and 5,000 U.S.
troops to help the more than
8,400 American forces cur-
rently in Afghanistan, many of
whom are focused on advising
and training Afghan forces.
Defense officials said the
White House memo wasnt likely
to hamstring Pentagon planning,
even though it puts constraints
on military decision-making.
At this point in the strategy
review, according to current
and former U.S. officials, the
administration has agreed to
one key understanding on
troop levels: U.S. troops will
stay in Afghanistan for as long
cause instability, making the
Bedouins rise up.
T
here are plenty of guns
to go around in the area.
Violent crime and drug
trafficking are rife, in part be-
cause of neglect by Israeli po-
lice, Mr. Abu Arar added. As
long as we use the guns to kill
each other, they dont care.
They would only care if the
guns were to be used against
Jews, he said.
Ayoob Kara, an Israeli cabi-
net minister who is working on
the countrys Bedouin policy,
said that it is Arab nationalist
politicians like Mr. Abu Arar
who are primarily responsible
for the rising tensions in the
region. Their interest is not to
find a solution, Mr. Kara said.
They use democracy to create
conflict because if there is con-
flict between the Bedouin and
Israel, they receive support
from voters.
As for the unrecognized vil-
Of Silk Road Petroleums 46
shipments in the period, 40
emitted no tracking signals. The
company didnt respond to re-
quests to comment emailed to
an address in the directory of
the U.A.E.s Hamriyah Free Zone
Authority, where the company
is registered. The email address
was recently removed from the
directory.
In the nine Petrochemix
shipments in the second half of
2016, seven ships emitted no
AIS radio signals at some point.
A Petrochemix co-owner said
the firm had no relations or
business with Iranian compa-
nies, and that any AIS shut-off
was a matter for vessel owners.
Petrochemix chartered tankers
owned by seven shippers in the
period.
The 47 shipments during information, Windward said.
which AIS was off were handled
by 15 vessels. Many of the ship-
owners couldnt be reached,
and one declined to comment.
One shipper said many charter-
ers tell ships to shut off the AIS
because most major banks
dont want to deal with such
trade.
Blue Ocean Shipping Lines,
an owner of one of the vessels
Friday, July 7, 2017 | A5
as they are needed.
There will be no timelines
for withdrawala key break
with an Obama administration
approach seen by some Trump
administration officials as a
strategic mistake. Instead, the
officials said, the U.S. is now
likely to scale back its military
presence only when Afghan
forces are able to secure most
of the country and the Taliban
threat is contained.
Efforts on another U.S. pri-
ority in Afghanistan, to deny
extremist groups sanctuary,
have fallen short: The Pentagon
estimates Afghanistan and Pak-
istan are home to more than
20 extremist groups, the high-
est concentration in the world.
The strategy review has
been expanded to explore the
possibility of tougher steps
against Pakistan. Many officials
in Washington and Kabul view
Islamabad as an unreliable
partner and want to punish
Pakistan for providing sanctu-
ary for extremist leaders; Paki-
stan has denied that it sup-
ports or shelters insurgents.
The idea is resonating in
the White House, according to
current and former officials.
But Mr. Trump and aides are
wary of putting too much
pressure on Pakistan and mak-
ing things worse, officials said.
MENAHEM KAHANA/AGENCE FRANCE-PRESSE/GETTY IMAGES
lages, Mr. Kara said that the
Bedouin have no legal claim to
the land, and should relocate
to housing that the govern-
ment will provide to their com-
munities elsewhere.
During Israels war of inde-
pendence, nearly 90% of the
Bedouin then living in the Ne-
gev had to flee. Only about
10,000 were allowed to re-
main, mostly from clans
deemed loyal by Israeli mili-
tary commanders. They were
permitted to live only in an
area around Beer Sheva
known as the Siyaj. Most of
the Negev was declared a re-
stricted military zone.
Until about two decades
ago, it was still common for
Negev Bedouin families to send
their sons as volunteers in the
Israeli armysomething that
rarely happened in the Muslim
Arab communities elsewhere
in Israel. These days, military
service has become rare for the
Bedouins of the Negev, too.
chartered by both companies
for a total of nine shipments,
said its ships AIS was broken at
the time. Another shipper said
the AIS was never intentionally
switched off, nor was any AIS
deficiency reported.
Apart from tracking cargo,
the AIS system is used to pro-
vide location information to in-
surance companies, banks and
others. But it can be manipu-
lated to indicate a ship is some-
where it isnt. Radio signals is-
sued by as many as 16 of the 47
ships indicated their Iranian
cargo began the journey in a
different country, though satel-
lite imagery showed them to
have been loaded in Iran, ac-
cording to Windward. That sug-
gests the signals may have been
used to transmit false location
A misdeclaration of the
ports of loading or discharge
would be one of the indications
that the voyage breached sanc-
tions, Mr. Mukundan said. In
any case, such a misdeclaration
would be improper and mis-
leading.
A U.S. Treasury official de-
clined to comment on the ship-
ments identified by the Journal.
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
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A6 | Friday, July 7, 2017 THE WALL STREET JOURNAL.

WORLD NEWS

Diplomatic Tests for Merkel Trump Knocks

BY ANTON TROIANOVSKI

HAMBURG, GermanyThe
U.S. Intelligence
U.S. president has accused her President Donald Trump The presidents comments
of ruining Germany. The Turk- took his criticism of the U.S. today, again casting doubt on
ish president says she harbors intelligence community abroad whether Russia was behind
terrorists. The Russian presi- on Thursday, calling its acu- the blatant interference in our
dent, her spy agencies warn, men into question before an election and suggestinghis
may be about to interfere in international audience in Po- own intelligence agencies to
her re-election campaign. Ger- land. the contrarythat nobody re-
man Chancellor Angela Merkel ally knows, continue to di-
is meeting with all three of By Peter Nicholas and rectly undermine U.S. inter-
them this week. Anton Troianovski ests, said Rep. Adam Schiff
In Hamburg, the 62-year- in Warsaw and Paul (D., Calif.), the ranking Demo-
old pastors daughter hosts Sonne in Washington crat on the House Intelligence
the Group of 20 summit thrust Committee.
MICHAEL KAPPELER/DPA/ZUMA PRESS

into a role no German chancel- While the president con- This is not putting Amer-
lor has had to navigate in the ceded that Russia meddled in ica first, but continuing to
postwar era. The leader of a the 2016 U.S. election, he said propagate his own personal
country that generally dis- other countries could have in- fiction at the countrys ex-
dains international confronta- terfered as wellan assess- pense, Mr. Schiff said.
tion is now the foil to three of ment that contradicts the find- The White House didnt re-
the worlds most polarizing ings of U.S. intelligence and spond to requests to comment.
heads of state. Three countries security agencies. The presidents remarks
that Germany had prized as Mr. Trumps critique of the came after reporters asked if
partners have, in different U.S. intelligence community he accepts the U.S. intelligence
ways and to varying degrees, Angela Merkel greeted Turkish President Recep Tayyip Erdogan on Thursday in Hamburg, Germany. came the day before his high- communitys verdict that Rus-
become antagonists. profile meeting with Russian sia interfered in the election
The world is turbulent, the election campaign. He is ing him to deliver a speech to dogan as the new authoritar- President Vladimir Putin at to help his candidacy.
Ms. Merkel said in a speech to threatening to slap tariffs on his countrymen on the side- ian axis of testosterone. But the G-20 summit in Germany. Mr. Trump said the U.S. in-
parliament last week. It has German steel exports and has lines of the summit. Later on, Ms. Merkel plays down the Mr. Putin has denied interfer- telligence community has
become less united. undermined one of her priori- she will join French President personal contrasts. ence in the election. made mistakes in the past and
At the gathering in Ham- ties by exiting the Paris cli- Emmanuel Macron to face President Trump was cer- Mr. Trumps chastisement that its judgment is open to
burg, global disunity years in mate accord. After the meet- Russian President Vladimir tainly elected by many who of his countrys own intelli- question. He mentioned the
the making will become per- ing, a spokesman for her said Putin, whose annexation of are skeptical of globalization, gence capabilities in front of a U.S.-led invasion of Iraq in
sonified. Ms. Merkel will be in the two spent an hour discuss- Crimea three years ago now and he feels he has a duty to foreign audience marked a 2003, when intelligence as-
the middle, and her patient, ing G-20 issues and foreign looks like the opening act in those voters, she told Die rare action for a U.S. president sessments saying Iraq pos-
deliberate style of diplomacy crises. Europes era of geopolitical in- Zeit. Asked whether she could heading into a high-profile in- sessed weapons of mass de-
will be put to the test. Then she sat down with stability. have imagined a year ago a ternational summit. It is the struction turned out to be
President Donald Trump, Turkish President Recep German lawmaker Cem z- G-20 meeting with Messrs. Pu- latest point of tension be- inaccurate.
whom she met Thursday eve- Tayyip Erdogan, who said this demir of the opposition tin, Trump, and Erdogan, she tween Mr. Trump and the U.S. Mr. Trumps public ques-
ning, castigated Ms. Merkel week that Germany is com- Greens, recently referred to said: We have to accept these intelligence community, whose tioning of the U.S. intelligence
for her refugee policy during mitting suicide by not allow- Messrs. Trump, Putin, and Er- constellations as they are. behavior he likened to that of communitys accuracy could
the Nazis in a tweet ahead of come back to haunt him when
his inauguration. he needs to make a case for a

Japan, EU Say Trade Deal Fights Protectionism policy shift or military action
on the basis of such intelli-
gence, said Gary J. Schmitt,
BY LAURENCE NORMAN If approved, the pact would lion) of exports and imports in of isolationism and disintegra- resident scholar at the Ameri-

ALEXANDER ZEMLIANICHENKO/ASSOCIATED PRESS

AND EMRE PEKER represent a significant open-
ing of the once heavily pro-
BRUSSELSJapan and the tected Japanese market.
European Union agreed on Japan is seeking to pursue
terms of a new trade deal on new export opportunities fol-
Thursday, the day before U.S. lowing Mr. Trumps with-
President Donald Trump was drawal from the Trans-Pacific
expected to clash with them Partnership trade deal.
and other world officials over Mr. Trump arrived on
how global trade works. Thursday in Hamburg, Ger-
Thursdays announcement many, for a meeting of the
is a fresh sign of major global Group of 20 major economies,
powers responding to Mr. where differing views on trade
Trumps America First poli- are likely to loom large.
cies. With 125 billion ($142 bil-
2016, an EU-Japan trade deal
would be one of the most sig-
nificant the bloc has reached.
Officials have said it could
eventually knock an annual 1
billion off customs duties.
Negotiations have taken
four years and significant hur-
dles remain.
Still, leaders on both sides
hailed the deal, which they
hope will take effect in two
years, as a blow to protection-
ism.
Some are saying the time
tion is coming again; we are
demonstrating that this is not
the case, European Council
President Donald Tusk said.
Domestic opposition is ris-
ing against the pact, which ad-
dresses tariffs and nontariff
barriers to trade, such as reg-
ulations.
However, negotiators re-
cently resolved some of the
thorniest issues, revolving
around the auto and dairy in-
dustries, helped by top-level
political encouragement.
can Enterprise Institute and a
former Senate Intelligence
Committee staff director.
Members of Congress from
both parties have called on
Mr. Trump to confront Mr. Pu-
tin about what intelligence of-
ficials say is conclusive proof
that Russia hacked Democratic
computer systems and leaked
emails from them a bid to in-
fluence the election.
The White House hasnt
Mr. Trump will meet Friday said whether Mr. Trump will
with Russian President Putin. raise the issue.
 For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
THE WALL STREET JOURNAL.
U.S. Sticks to Diplomacy on North Korea
Officials play down war
option as they press
China, others to cut
ties with Pyongyang
The Trump administration
said it would give diplomacy
more time to resolve a gather-
ing crisis over North Koreas
efforts to build a nuclear
weapon that can reach U.S.
shores.
By Gordon Lubold
in Washington
and Peter Nicholas
in Warsaw, Poland
On Thursday, Defense Sec-
retary Jim Mattis said the U.S.
wasnt closer to war, in his
first remarks since North Ko-
rea launched this week what
American officials concluded
was the countrys first inter-
continental ballistic missile.
The president has been
very clear and the secretary of
state has been very clear that
we are leading with diplomatic
and economic efforts, Mr.
Mattis said during an im-
promptu press briefing at the
Pentagon. He said the military
JAKUB KAMINSKI/REX SHUTTERSTOCK/EPA
Crowds awaited President Donald Trumps speech in Warsaw.
TRUMP
Continued from Page One
ica and Europe have suffered
one terror attack after another.
Were going to get it to stop.
With Thursdays address, the
U.S. president sought to provide
an intellectual grounding for
some of the controversial poli-
cies he has pushed since taking
office: the travel ban, building a
border wall, and aggressive ac-
tions against illegal immigrants.
All these initiatives have
faced setbacks. Courts have de-
layed and constrained Mr.
Trumps efforts to restrict
travel from six Muslim-majority
countries he says pose an ele-
vated risk of terrorism. It isnt
clear whether he will win con-
gressional support or funding
for the wall along the U.S.-Mex-
ican border, a linchpin of his ef-
fort to stop illegal migrants.
Detractors have said Mr.
Trumps moves reflect an anti-
Muslim, nativist bias. But in Mr.
An adviser said the
speech aimed to give
Mr. Trumps actions
philosophical sweep.
Trumps telling, his steps are
needed to fortify a Western cul-
ture at risk of being washed
away.
The fundamental question
of our time is whether the West
has the will to survive, Mr.
Trump said, amid chants of
Donald Trump!
Do we have the confidence
in our values to defend them at
any cost? Do we have enough
respect for our citizens to pro-
tect our borders? Do we have
the desire and the courage to
preserve our civilization in the
face of those who would sub-
vert and destroy it? he asked.
A main architect of the
speech was Stephen Miller, a
senior adviser and part of a
populist-nationalist wing at the
White House led by strategist
Steve Bannon, White House
aides said.
At times Mr. Bannons clout
has seemed in doubt. He has
clashed with the presidents
son-in-law, senior adviser Jared
Kushner, and at times Mr.
Trump has seemed to lose pa-
tience with him. But the Ban-
non-Miller faction doesnt ap-
pear to be in retreat, and White
House aides indicated they
were pleased with Mr. Millers
work.
In tone and substance, the
speech departed from the typi-
cal pattern of Mr. Trump, who
* *
Mr. Trump was flanked by his counterparts from South Korea, left, and Japan at the U.S. Consulate in Hamburg, Germany, on Thursday.
remains ready based on its
treaties with U.S. allies in
Japan and South Korea.
His remarks came after
President Donald Trump on
Thursday said he was consid-
ering some pretty severe
things in response to North
relishes the instant impact that
Twitter provides in 140-charac-
ter bursts. A senior adviser who
briefed reporters on the speech
shortly before its delivery said
the aim was to portray Mr.
Trumps positions with more
philosophical sweep.
Thursdays address had a
loftier ring than his address in
Saudi Arabia in May, when Mr.
Trump said Americas global
role should be guided by what
he called principled realism.
The senior adviser said of
Thursdays address: The core
theme of this speech is a de-
fense of Western civilization.
The message isnt necessar-
ily easy for Mr. Trump to pull
off. While he celebrated tradi-
tions of free speech and free
expression in his speech, he
has faced mounting criticism
over his broadsides against
news outlets.
On his trip abroad, he kept
up that criticism. What we
want to see in the United States
is honest, beautiful, free press,
he said at a news conference in
Warsaw. We dont want fake
news.
On Friday, Mr. Trump is
scheduled to hold a bilateral
meeting with Mr. Putin, a figure
he praised during his presiden-
tial campaign, at a summit of
leaders from the Group of 20
leading nations. U.S. intelli-
gence agencies have concluded
Russia meddled in the election
with a goal to elect Mr. Trump.
It was unclear whether Mr.
Trump would bring up the mat-
ter. At his news conference on
Thursday, Mr. Trump said no
one really knows for sure who
was behind the interference.
Far from guaranteeing West-
ern norms, Mr. Trump could be
coaxed into abandoning them,
said U.S. Sen. Chris Coons, a
Delaware Democrat. Theres a
significant risk that Putin will
play to Trumps ego and will at-
tempt to pressure him to aban-
don what are our core American
traditions, Mr. Coons said.
In Thursdays speech, Mr.
Trump criticized Moscow for
its interference in Ukraine and
its support for governments in
Iran and Syria.
We urge Russia to cease its
destabilizing activities in
Ukraine and elsewhere, and its
support for hostile regimesin-
cluding Syria and Iran, Mr.
Trump said.
But some European officials
wondered if Mr. Trump would
carry those criticisms into Fri-
days meeting.
Theres no doubt that Presi-
dent Trumps position regard-
ing Russia is, on many occa-
sions, different than what he
presented today in Warsaw,
said European Council Presi-
dent Donald Tusk, a former Pol-
ish prime minister.
WORLD NEWS
Koreas latest efforts. At a
joint news conference in War-
saw with his Polish counter-
part, Andrzej Duda, Mr. Trump
said that North Korean leaders
were behaving in a very, very
dangerous manner and some-
thing will have to be done
Global Ties Keep Kim in Business
North Korea may be one of
the worlds most isolated
countries, but the tightening
sanctions it has lived with for
the past two decades are any-
thing but impermeable.
By Jonathan Cheng
in Seoul, Jeremy Page
in Beijing and
Alastair Gale in Tokyo
An examination of North
Koreas global connections re-
veals that even as it becomes
increasingly dependent on
China, Pyongyang maintains
economic and diplomatic ties
with many nations. Those
linksfrom commercial and
banking relationships to scien-
tific training, arms sales, mon-
ument-building and restau-
rantshave helped it amass
the money and technical
know-how to develop nuclear
weapons and missiles.
The nature and extent of
North Koreas global ties come
from current and former offi-
cials, researchers, North Ko-
rean defectors, U.N. decisions,
NGOs and an analysis of eco-
nomic statistics.
In some cases, North Korea
and its leader, Kim Jong Un,
lean on old allies, particularly
those like Cuba from the for-
mer Communist bloc, or those
like Syria that are similarly
hostile to the U.S.
In others, notably in Africa,
it has more transactional rela-
tionships to supply cheap
weaponry or military training.
In the Middle East, it supplies
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Free shipping and returns. Order online or call 844.482.4800.
about it.
He didnt say what steps he
might take or if he was con-
templating military action.
Later in the same forum, Mr.
Trump said that doesnt
mean were going to do them,
adding, I think we will just
Fuel for North Korea's Fire
Pyongyang maintains economic ties to the outside world.
The country's top ve exports by product type
$3.0 billion
2.5
2.0
1.5
1.0
0.5
0 products
2000 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15
Note: Based on other countries' import data.
Sources: The Atlas of Economic Complexity
laborers for construction work
and pockets almost all of their
earnings.
The sanctions havent been
as broad as those applied to
Iran over its nuclear program,
nor as rigidly enforced.
David S. Cohen, undersecre-
tary of the Treasury for ter-
rorism and financial intelli-
gence during the Obama
administration, wrote in an
op-ed in April that North Ko-
rea has gotten off relatively
easy, especially as compared
with Iran.
North Korean defectors
have detailed how the regime
uses front companies to con-
ceal its commercial activities
in foreign countries, or adopts
business names that obscure
their identity by avoiding us-
ing North Koreas full name,
Friday, July 7, 2017 | A7
North Koreas neighbors in
South Korea and Japan.
The Trump administration
has sought other avenues to
choke off North Koreas nu-
clear program.
Secretary of State Rex Til-
lerson has pressed China and
other countries that host
North Korean guest workers
and conduct business with
Pyongyang to scale back those
ties, a department spokes-
woman said Thursday. Wash-
ington remains in a diplo-
matic phase to address
Pyongyangs nuclear program,
she said.
EVAN VUCCI/ASSOCIATED PRESS
Nikki Haley, the U.S. ambas-
sador to the United Nations,
said the Trump administration
would introduce new sanc-
tions against North Korea in
the Security Council. She said
the U.S. would be willing to
use military force if punitive
restrictions fail.
Both China and Russia have
take a look at what happens balked at new sanctions or
over the coming weeks and military pressure.
months with respect to North On Thursday, U.S. efforts in
Korea. the Security Council hit a hur-
Military reprisal by the U.S. dle when Moscow disputed
carries risks not only to U.S. conclusions that Pyongyang
forces, but also to American had fired an intercontinental
allies in Asia, especially to ballistic missile.
communications equipment to
Eritrea via front companies in
Malaysia, according to a re-
cent U.N. report.
Most North Koreans abroad
are involved in providing
funds for the state, defectors
Coal/ say. One of the primary roles
iron ore/ of North Korean diplomats is
mineral to help develop and maintain
products
cash flows for the regime, for-
mer embassy officials say.
Garments/ North Korea missions typically
textiles
have to be self-financed to
Machinery/
maximize revenue for the
electrical
state, these people say.
Metals
Animal In recent months, under
pressure from the Trump ad-
ministration, there are signs
more countries have begun to
THE WALL STREET JOURNAL. clamp down on North Korea.
More than 50,000 North
thereby benefiting from confu- Korean workers are employed
sion over whether the entity is abroad, according to the Asan
North or South Korean. Institute for Policy Studies, a
Pyongyang maintains diplo- Seoul-based think tank, many
matic ties with 164 countries in construction or factory
and has embassies in 47, ac- jobs. For these workers, wages
cording to the National Com- are paid directly to North Ko-
mittee on North Korea, a rean officials, raising hundreds
Washington-based nongovern- of millions of dollars a year
mental organization, and the for the state, human-rights
Honolulu-based East-West groups say.
Center. Secretary of State Rex Til-
Although it lags behind lerson on Tuesday called on
China, India has been North Ko- the global community to stop
reas second-biggest trade part- doing business with Pyong-
ner in the past couple of years, yang.
buying commodities including This week, Sen. Cory Gard-
silver and selling it chemicals ner (R., Colo.), chairman of the
among other goods. Russia has Senate Foreign Relations Com-
exported petroleum products to mittees subpanel on East
North Korea and imported gar- Asia, said he was drafting leg-
ments and frozen fish. islation that he says would
Last year, North Korea at- create a global embargo on
tempted to export military- North Korea.
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A8 | Friday, July 7, 2017 THE WALL STREET JOURNAL.

TECHS
MOST
AMBITIOUS
MINDS,
ON STAGE 2017 SPEAKERS INCLUDE: SAM ALTMAN

AND
President, Y Combinator

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President and CEO, Levi Strauss & Co.

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Vice Chair, GE

KHANYI DHLOMO

ON THE
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BARRY DILLER
Chairman and Senior Executive, IAC and Expedia, Inc.

DAVID EUN
President, Samsung NEXT

JEFFREY KATZENBERG
Partner, WndrCo

RECORD
MARC LORE
President and CEO, Walmart eCommerce
MARISSA MAYER
President and CEO, Yahoo! (20122017)

JENNIFER NASON
Global Chairman, Investment Banking, J.P. Morgan

EDUARDO SAVERIN
Co-Founder and Partner, B Capital Group

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THE WALL STREET JOURNAL.
FOOD
Continued from Page One
share from giants such as Gen-
eral Mills Inc., which came out
with Greek-style Yoplait yo-
gurt, but too late to catch up.
We were late to respond as
Greek yogurt developed early
in this decade, said General
Mills Chief Executive Jeff Har-
mening, noting double-digit
declines in Yoplait sales lately.
Our sales have suffered as a
result.
The plight of the packaged-
goods companies is a classic
business tale. An industry cre-
ates winning products, carves
out strong market positions
and enjoys reliable, sustained
revenueonly to be too slow
to adapt to changes that
threaten those cash cows.
A lot of whats crept into
big companies is internal fo-
cus, bureaucracy, PowerPoint
presentationsthe antithesis
of agility, said Sean Connolly,
chief executive of Conagra
Brands Inc., maker of Hunts
ketchup, Peter Pan peanut but-
ter and Chef Boyardee. Mr.
Connolly joined Conagra in
2015 and said he is trying to
shake this mentality and move
faster at coming out with new
products.
Many big brands didnt
move fast enough to remove
artificial ingredients and ha-
vent been able to shed the
negative perception of pro-
cessed food, said several food
executives and others close to
the industry.
Store-brand pressure
At the same time, they
faced low-cost store brands
or private label products
from retailers such as Costco
Wholesale Corp., Wal-Mart
Stores Inc. and regional gro-
cers that sell copycat prod-
ucts. National brands, which
have huge marketing costs,
generally cant afford to com-
pete on price with the in-
house brands of stores, which
need little marketing beyond
displaying products promi-
nently on their own shelves.
Store brands gained popu-
larity around the financial cri-
sis, and analysts expect their
market share to rise as they
add natural brands of their
own and as discount chains,
which mostly sell store
brands, expand.
Private-label-product shelf
space has expanded 3.5% a
year since 2012, estimated
Credit Suisse analyst Robert
Moskow in a recent report. Big
brands face escalating price
pressure from the incursion of
store brands and from retail-
ers demanding lower prices,
he wrote. Up to now, the Big
Food companies had sufficient
pricing power to drive earn-
ings higher even though they
had been losing market share
to smaller entrepreneurial or-
ganic and natural brands.
Big food sellers still domi-
nate in America. The 25 larg-
est food and beverage compa-
nies commanded a 63% share
of $495 billion in U.S. food and
beverage sales in 2016, accord-
ing to consultancy A.T. Kear-
ney.
That is down from 66% in
2012, and even seemingly
small market-share losses hurt
sales and profits. The top 25
companies averaged 2% annual
sales growth from 2012
through 2016, compared with
6% for their smaller rivals, ac-
cording to A.T. Kearney.
Food companies in recent
years have revamped old-line
brands to cater to evolving
consumer preferences. Nestl
TV
Continued from Page One
regularities in the schedule,
which can include holiday
weekends and special sporting
events, a show spokesman
said.
The network neednt feel
defensive. ABC took its own
ratings mulligan seven times
during the 2016-17 season
with Wrld New Tonite. CBS
misspelled The CBS Evening
News as the CBS Evening
Nws 12 times this season.
Its a little bit of games-
manship, said Bill Carroll, a
veteran TV industry consul-
tant. Its a practice that hap-
pens with a wink and a nod.
Nielsen projects viewer rat-
ings based on a panel of more
than 40,000 homes and
100,000 people. Higher ratings
help networks sell commercial
time at higher rates. The net-
work misspellings fudge that
calculation, and some adver-
For over a century, national brands provided big food companies with reliable revenue growth from grocery aisles. Not anymore.
cut sugar in its Nesquik choco-
late-drink mix and fat in fro-
zen dinners. General Mills re-
moved artificial food dyes
from its Trix cereal. Kraft
Heinz has scrapped added ni-
trates from its Oscar Mayer
hot dogs and removed artifi-
cial dyes from its macaroni
and cheese, to meet consum-
ers changing needs through
product renovations, a Back then, said food his-
spokeswoman said.
Big companies also say they
are trying to better compete
with inexpensive store brands
by ensuring their food tastes
better and can promise health healthy spurred consumers to-
benefits that make them
worth the extra money.
The moves are coming late
for consumers such as Megan
Dart, a 37-year-old mother of
four in the Houston area who
says she grew up on General
Mills Hamburger Helper and
Krafts Kool-Aid but now pre-
fers fresher food for her chil-
dren.
Velveeta. I dont even
know what that is, she said,
adding that the ingredients in
that Kraft cheese dont seem
real to her. Instead, she buys
a block of cheese made by an
Oregon dairy cooperative. We
dont do pre-made meals, no
microwave meals.
When she does buy pack-
aged food such as frozen waf-
fles, she turns to her local gro-
cery-store brand as long as it
tastes as good. If Im going to
buy it, she said, I would
rather save the money.
Through most of the 1900s,
big brands were in tune with
Americans desire for safe and
Brands such as Annies pasta, now part of General Mills, gained at the expense of mainstream brands.
tisers say the trick is getting
overused.
Networks never used to do
this, said Billie Gold, director
of programming at ad giant
Dentsu Inc. Now, she said, it
has become the norm.
TV news executives say the
higher numbers gathered from
show misspellings are used
only for publicity purposes,
and that accurate ratings for
the missing broadcasts are
readily available to advertisers.
Ms. Gold and other ad exec-
utives say they are frustrated
with the detective work re-
quired to kick the tires on net-
work viewer ratings. She said
her clients are surprised by
the difference between the
number of eyeballs the net-
works claim and Ms. Golds
tally, which accounts for the
altered titles.
When people ask us why
our estimates are so much
lower than what they see, she
said, we explain the situation,
and they have their ah-ha
moment.
IN DEPTH
affordable food. Innovations
such as flash-freezing made
packaged food convenient.
Preservatives and artificial
coloring made it appealing
and cheap, without risk of
food-borne illness. Packaged
foods enjoyed prime shelf
space at grocery stores and
won over consumers with na-
tional advertising.
search at market-research
torian Andrew Smith, they
could advertise and promote
their way out of a problem.
In the 1990s, changing per-
ceptions of what counted as
five years.
ward more natural, organic
A lot of whats crept
into big companies,
says one CEO, is the
antithesis of agility.
food, Mr. Smith said. U.S. reg-
ulators began requiring nutri-
tion labels on packaged food,
leading to more scrutiny by
customers.
When the push for fewer
artificial ingredients and addi-
tives gained momentum, big
food companies largely de-
cided to wait and see whether
it would become mainstream,
he said. They ignored the
concerns, and they stopped ex-
perimenting because they
could buy aisles in the grocery
store.
From 2005 to 2010, a swath
of new brands such as Amplify
Faced with complaints that
title typos have grown from a
trickle to a torrent, Nielsen
plans to hold a meeting about
it next week for TV industry
representatives.
If we find a network work-
ing in contrast to this agreed-
upon policy, we address the is-
sue in a direct fashion as a
way to maintain fairness and
balance for all of our clients
and the industry as a whole,
Nielsen said.
NBC Nightly News is sometimes listed in programming
schedules as NBC Nitely News to fool Nielsens automated tally.
Friday, July 7, 2017 | A9
youre smaller, and you have
nothing to lose, said Ms.
Goeddel. She now works for an
artisanal chocolate company.
Macaroni and cheese is a
case in point. Krafts version
made its debut in 1937 when
America was in the throes
of the Great Depression and
was popularized for its ability
to serve a family of four for 19
cents, the company said.
When people started look-
ing for fresher options in the
new millennium, brands like
Annies Homegrown all-natural
pasta gained at the expense of
mainstream brands. From
2012 to 2016, Kraft lost 2 per-
centage points of market share
in mac and cheese, according
to Euromonitor.
Kraft Heinz said that since
it announced last year it had
removed artificial dyes, sales
LUKE SHARRETT/BLOOMBERG NEWS
and market share improved.
Unilever PLC is trying to
sell its margarine brandsthe
foundation on which it built
its business starting in 1929
after a takeover offer from
Kraft Heinz sparked a strate-
gic overhaul earlier this year.
Over the past decade, butter
regained favor as a natural op-
tion and margarine sales fell.
Snack Brands Inc.s SkinnyPop Unilever recently kicked off a
popcorn and Kind LLCs Kind Change in Appetite restructuring program aimed
snack bars hit shelves, rapidly The top 25 companies share of at making it more responsive
expanding from a few small U.S. food and beverage sales has to consumer trends.
stores to retail giants such as shrunk as shoppers turn to other Nestl, the worlds biggest
Costco and Wal-Mart. brands. packaged-food company, was
Smaller brands were more singled out by billionaire ac-
focused on making food with Top 25 Others tivist investor Daniel Loeb for
simpler, more natural ingredi- 2016: having fallen behind due to
2012 market:
ents, said Chris Morley, presi- $494.7 billion changes in consumer tastes
$439.6 billion
dent of food and retail re- and shopping habits, as well
as an influx of new competi-
firm Nielsen. Such clean-la- tion from smaller, local
bel products, he said, have brands.
been the biggest growth driv-
$149.5
billion
$183.0
billion Nestl had said in June it
ers of the packaged-food and (34%) (37%) was looking to sell its U.S.
beverage industry in the past confectionery business, which
Source: AT Kearney includes the Butterfinger, Baby
Some old standbys havent THE WALL STREET JOURNAL. Ruth and Crunch candy bars.
fared as well. Hamburger Last week, following Mr.
Helper, and the other Helper brands such as Frontera salsa. Loebs letter, it added that it
varieties owned by General
Mills, declined to 40% of sales
Frozen dinners by Frontera hit
shelves within 120 days of cre-
would invest in high-growth
businesses such as bottled wa-
of dinner mixes in the U.S. last ating the recipe, much faster ter and infant nutrition in-
year from 61% in 2007, accord-
ing to market researcher Eu-
than the typical two-year in-
novation cycle, a Conagra
stead.
Mondelez International Inc.,
romonitor, and Conagra spokesman said. which has mostly snack
Brandss Chef Boyardees share brands, and chocolate giant
of shelf-stable ready-meal Hershey Co. say they have
sales fell to 23% from 25%. Food online benefited from an increase in
General Mills said Ham- The web and social media people snacking rather than
burger Helper might not have gave smaller food companies a having three meals a day.
robust growth prospects but direct path to consumers Companies, while adjusting
generates consistent profits hearts, minds and stomachs. some big brands to new reali-
and feeds millions of Ameri- They gained traction through ties, are adding new lines as
cans. It improved the taste by blogs and Facebook with little well. General Mills, after it
using real cheese and, to at- marketing spending, selling failed to regain ground lost to
tract value-oriented shoppers, food online via Amazon.com Chobani, recently launched a
has added 20% more pasta, a Inc. or their own websites French-style line of yogurt.
spokeswoman said. long before they would have Several big companies are
Conagra said it is focused been able to get it in stores. acquiring faster-growing
on reviving brands with the Among American house- brands. Campbell Soup Co.
most potential, such as holds, 23% bought groceries said Thursday it plans to buy
Healthy Choice frozen dinners. online last year, up from 19% Oregon-based Pacific Foods, an
It said it would sell brands in 2014, according to Nielsen organic soup and healthy-meal
that arent core to the busi- and the Food Marketing Insti- company, for $700 million.
ness, such as Wesson cooking tute. Campbell CEO Denise Morri-
oil, and it has acquired trendy Big brands can no longer son said she has been focused
control perceptions about food on responding to consumer
with television advertisements demands for fresher ingredi-
and shelf placement. In the ents since 2011. This acceler-
good old days, the retail shelf ates our efforts, she said.
was an important barrier to In 2014, General Mills
entry, said Nestl CEO Mark bought Annies Inc., maker of
Schneider at a Berlin confer- Annies Homegrown, and ex-
ence in June. Today, the end- panded it to new products
less shelf of the internet such as yogurt and soup. In
means smaller companies can 2016, Danone SA, the giant yo-
easily enter the market, he gurt company, agreed to buy
said. WhiteWave Foods Co., which
Big food companies say makes Silk soy milk and Hori-
they have also been hurt by zon organic yogurt, saying the
economic trends in the U.S. deal would help it offer con-
that have slowed some con- sumers healthier choices.
sumer spending in recent Kellogg Co., General Mills
DANIEL ACKER/BLOOMBERG NEWS
years. and others have directly in-
The inertia of big food vested in food startups
firms made it easier for them through venture-capital funds
to lose market share when that they say will give them
eating trends changed, said insight as to how to respond
Beth Goeddel, who spent 16 better to evolving trends.
years in marketing for Kraft Size alone, said Nestls
brands such as Oscar Mayer Mr. Schneider at the confer-
before it was acquired in 2015. ence, does not protect you
Its easier to be nimble when from the winds of change.
Nielsen has long had a so-
called tilting rule that allows
TV networks to fiddle with
programs for special circum-
of the just-finished TV season.
Typically, a shows viewership
is calculated using the ratings
of both first-run and repeated
show. Since Nielsen counts
viewers of a show only
through the last network com-
mercial break, the ratings ser-
stances. For years, tilting was episodes, which are labeled vice ignores SNLs last half-
used sparingly, reserved pri- R or repeat. hour, when viewers generally
marily for Christmas and When CBS submitted its turn away.
Thanksgiving or if a show was schedule to Nielsen, however, Sometimes networks sneak
pre-empted in parts of the U.S. it labeled reruns of Bull as in a second airing of a show
for a live sports event. an encore. The ratings ser- and add the additional viewers
Misspelling isnt the only vice categorized it as a differ- to the tally of the original tele-
network trick. CBS boasted ent show and didnt factor the cast and hope no one notices.
that its legal drama Bull was rerun into the shows season NBC in 2015 persuaded al-
the most-watched new show average. most a dozen of its local TV
Thats bull, cracked Brad station affiliates to rerun
Adgate, a longtime ad execu- Nightly News after 2 a.m. At
tive who studies TV ratings. the time, NBC said, it was fo-
For advertisers, the network cused on ways to reach our
sleight-of-hand is a pain in the audience when and how they
neck, he said: You have to want to be reached.
pay a little more attention if A rival network thought
you want do an analysis. otherwise and alerted NBC ad-
A CBS spokesman declined vertisers to the practice. After
to comment. learning of the stunt, many
Another ratings game in- advertisers cried foul. They
volves the calculated place- told NBC whoever was watch-
NBC NEWS
ment of national TV commer- ing the newscast at that hour
cials. NBCs Saturday Night wasnt the kind of consumer
Live typically loads all of its they wanted to reach. NBC
national commercials in the said it quickly discontinued
first hour of the 90-minute the practice.
 For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
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A9A | Friday, July 7, 2017
GREATER NEW YORK
CAREY WAGNER FOR THE WALL STREET JOURNAL
Track repairs will result in fewer trains in and out of New Yorks Penn Station and delays for thousands of NJ Transit and LIRR commuters.
Riders Make Plans for Rail Misery
BY MARIANA ALFARO
Hundreds of thousands of
riders are bracing for longer
commutes as New Yorks Penn
Station prepares for a nearly
two-month partial shutdown
starting Monday to make
critical repairs to tracks.
Some NJ Transit and Long Is-
land Rail Road passengers said
they already have begun brain-
storming ways to pass the extra
time they likely will spend wait-
ing for trains. A few said they
would read books; others will
answer emails. Some are taking
a philosophical approach, noting
that they will get there when
they get there.
In April, Amtrak said it
JESSICA HILL/ASSOCIATED PRESS
Hartford has sought state help to deal with its fiscal problems.
Hartford Hires Counsel
For Possible Bankruptcy
BY JOSEPH DE AVILA
The city of Hartford has re-
tained the law firm of Green-
berg Traurig LLP as restruc-
turing counsel as it weighs
whether to file for chapter 9
bankruptcy protection, offi-
cials said Thursday.
Hartford, the state capital,
has a deficit approaching $50
million and has asked Con-
necticut for help. The state,
however, is facing its own bud-
get troubles and failed to pass
a spending plan to close a two-
year gap of $5.1 billion before
the fiscal year ended June 30.
The city has advocated for a
state budget that puts our cities
in a position to be strong and
vibrant, Mayor Luke Bronin
said. In the meantime, as we
start a new fiscal year without
a state budget and with signifi-
cant uncertainty, we will have
the advice and counsel of an ex-
would make major track repairs
from Monday through Sept. 1,
resulting in about 20% fewer
trains in and out of New Yorks
Penn Station. Some trains will
be diverted to other stations,
while others will be canceled.
LIRR rider Worawat Pumi-
sirisawat, 32 years old, said he
plans to stay at his office a lit-
tle later to avoid the evening
rush and walk around the city
before heading to Penn Sta-
tion. Its about enjoying and
spending more time, I dont
have to rush walking from the
office, he said.
Some commuters said they
have discussed the delays with
their bosses, with some get-
ting extra time to arrive at the
perienced and highly respected
restructuring firm.
Gov. Dannel Malloy, a Demo-
crat, said Wednesday it ap-
peared that July 18 was the ear-
liest the state legislature was
prepared to vote on a budget.
Greenberg Traurig, led by
Nancy Mitchell, will help Hart-
ford, evaluate options to put the
city on a path to long-term fis-
cal stability, city officials said.
During the past 18 months, the
city has made deep spending
cuts and continues to seek con-
cessions from public-employee
unions, Mr. Bronin said.
Hartfords fiscal woes have
been driven by rising fixed
costs on things such as health
care and pensions. It must pay
nearly $180 million on debt ser-
vice, health care, pensions and
other costs for the current fis-
cal year. That amounts to more
than half of the citys budget,
excluding education.
NY
office or receiving permission
to work from home.
For LIRR rider Karen
Berger, working remotely isnt
an option. The special-educa-
tion assistant principal at a
New York City public school
said she is working this sum-
mer and would spend the ex-
tra time on the train checking
her email and assuring her
boss that she is on her way.
Keith Biondo, 63, waited for
an LIRR train during a recent
rush hour. He wondered who
thought it would be a good
idea to concentrate all the re-
pairs in a couple of months,
disrupting so many trains.
When asked how he would
wile away anticipated delays,
Gunman Was Acting Erratically
BY ZOLAN KANNO-YOUNGS
Less than three hours be-
fore Alexander Bonds fatally
shot a New York City police
officer in a mobile-command
vehicle, a woman who said she
was his girlfriend called 911 to
report he was acting para-
noid, said Chief of Detectives
Robert Boyce.
The woman, whom police
officials didnt identify, said
she was following Mr. Bonds
at about 9:30 p.m. on July 4 in
the Mott Haven section of the
Bronx, Chief Boyce said. That
was 4 miles south of where
police say Mr. Bonds later
killed Officer Miosotis Familia,
a 48-year-old mother of three.
He was acting erratically and
was paranoid, Chief Boyce said
Thursday at a news briefing.
The girlfriend didnt iden-
tify Mr. Bonds, 34 years old, by
his full name. The 911 operator
asked if Mr. Bonds was armed
and the woman said no, Chief
Boyce said. The girlfriend
eventually lost track of him.
When police and EMS arrived
in Mott Haven, Mr. Bonds was
nowhere to be seen. In a second
phone call, the police asked the
woman where she thought he
might be, a senior law-enforce-
ment official said. She said she
last saw him walking east, but
police couldnt track him down.
At about 12:30 a.m. on
Wednesday, Mr. Bonds walked
up to the NYPD mobile-com-
mand post and fired one shot
at Officer Familias head in the
Fordham Heights neighbor-
hood of the Bronx, police said.
Mr. Biondo said he would
curse, fulminate, get angry, get
stress-tension headaches, hem-
orrhoids and heart palpitations.
An Amtrak spokesman said
there is never a good time to do
this work, but the repairs need
to get done. Our plan is de-
signed to try and keep long-term
disruptions to a minimum.
On a recent Tuesday at the
Upper Montclair rail station in
New Jersey, Dan DePasquale
said he is thankful his children
are out of school. If they
werent, the changes would
make his life more hectic. The
delays, he said, will be an op-
portunity to catch up on read-
ing to help him forget about
how taxing commuting can be.
Colleagues visited a makeshift memorial for NYPD Officer Miosotis Familia outside the 46th Precinct.
Alexander
Bonds in a
2013 photo
from the New
York State
Department of
Corrections.
Police shot and killed Mr.
Bonds a block away. The silver
revolver Mr. Bonds used was
stolen from Charleston, W.Va.,
Chief Boyce said.
Police later made the con-
nection between the shooting
and the 911 calls when investi-
gators interviewed the woman.
* **** THE WALL STREET JOURNAL.
Penn Station
Train Derails
BY PAUL BERGER
AND CHARLES PASSY
A train derailed at New
York Penn Station Thursday
night, just days before several
tracks at the station are due to
close for extensive repairs fol-
lowing two derailments earlier
this year.
A spokeswoman for NJ
Transit said a North Jersey
Coast Line train carrying 180
passengers experienced a mi-
nor derailment as it ap-
proached Penn Station
around 9 p.m.
A spokesman for the New
York Fire Department said it
had received a report that one
car derailed. No injuries were
reported, the spokesman said.
NJ Transit suspended ser-
vice in and out of Penn Ser-
vice.
NJ Transits Midtown Direct
trains were diverted to Hobo-
ken. Rail passes and tickets
were cross honored with PATH
and on buses.
As she headed toward a
Cost Estimate Soars
impact statement for the tunnel
For Hudson Tunnel
A project to dig a new rail
tunnel under the Hudson River
took a significant step for-
ward Thursdayand got more
expensive.
The tunnel project is the
costliest part of the first phase
of the Gateway Program to
double rail capacity between
Newark and New York City to
four tracks. John Porcari, the in-
terim executive director of the
Gateway Program, heralded the
Police categorized the 911
calls as a report of a possibly
emotionally disturbed person
who was nonviolent, according
to the official. The NYPD said it
receives about 10,000 such calls
a month. There was no reason
to make a connection before,
the senior official said. It was
just a 911 call in the Bronx about
a guy walking in the street.
Mr. Bonds girlfriend told
investigators he thought the
police were following him for
about the last two weeks,
Chief Boyce said. Officers re-
covered six phones from his
apartment, some of which con-
tained antipolice statements,
nearby PATH station, Cathe-
rine Lisowski, a commuter
from Union, N.J., said she had
become accustomed to rail de-
lays and problems. Ive just
learned to go with it. Life
could be worse. You could
have this, or you could have
ISIS.
Amtrak will close several
tracks at Penn Station for
eight weeks starting July 10 so
that engineers can carry out
extensive repairs to rails and
switches at the western end of
the station, which is used
heavily by NJ Transit.
An NJ Transit train derailed
at the station in April. In
March, an Amtrak train de-
railed there.
Amtrak had instituted a
temporary speed restriction at
the station while engineers
carried out track maintenance
work and inspections in prep-
aration for the repair work.
Amtrak lifted the speed re-
striction on Monday.
Corinne Ramey
contributed to this article.
release of a draft environmental
as a major milestone for the
most urgent infrastructure proj-
ect in the country.
The expedited report esti-
mated the cost of the new tun-
nel as well as of overhauling the
current tunnel at $12.9 billion.
Amtrak, which owns the tunnel,
had estimated the total cost at
$7.7 billion. Mr. Porcari, who
leads the development corpora-
tion overseeing the projects,
said the figures were revised af-
ter planners narrowed in on a
preferred route and design for
the new tunnel. Paul Berger
DREW ANGERER/GETTY IMAGES
he said. Police also found sev-
eral bottles of medication in
the apartment, the chief said.
Mr. Bonds criminal history
and social-media presence fur-
ther indicate animosity toward
police. In 2001, he was arrested
for the assault of a police offi-
cer in Queens with brass
knuckles, officials said. A video
posted on Mr. Bonds Facebook
page last year criticized police
treatment of residents.
Officer Familia is dead be-
cause of one reason and one
reason only, Police Commis-
sioner James ONeill said.
Thats Alexander Bonds and
his hatred of the police.
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
THE WALL STREET JOURNAL.
ID Cards
Offered
Illegals
Bogus
Protection
BY CORINNE RAMEY
A Bronx immigration or-
ganization faces accusations it
advertised a fake national
identification card that it said
would protect illegal immi-
grants from deportation.
The New York City Con-
sumer Affairs Department
said Thursday it had charged
the organization, called A New
Beginning for Immigrants
Rights Inc., and its president,
Carlos Davila, with engaging
in deceptive trade practices
for marketing ID4ICE cards.
The organization adver-
tised the cards, which cost
from $50 to $200, as a way to
get immunity from federal Im-
migration and Customs En-
forcement agents.
These deceptive tactics
not only place immigrant New
Yorkers at extraordinary risk,
but also violate the Citys
Consumer Protection Law,
said Commissioner Lorelei Sa-
las.
Neither A New Beginning
for Immigrants Rights nor Mr.
Davila could be reached for
comment.
In a mission statement
posted online, the organiza-
tion says it seeks to assure,
as well as to protect equal
rights for immigrants, survi-
vors of domestic violence, vic-
tims of trafficking, and en-
slavement.
The civil charges, for which
the agency seeks $1.3 million
in fines, will be heard at the
Officials dont know
how many of the fake
identification cards
were sold.
citys Office of Administrative
Trials and Hearings, officials
said.
In a YouTube video adver-
tising the cards, the narrator
asks in Spanish: Are you
afraid of being deported?
One can be detained at a
workplace, school, home or
even car, he says.
The identification card is
registered with the federal
government, he adds.
The investigation focused
primarily on deceptive adver-
tising practices and the
agency doesnt have informa-
tion as to how many cards ac-
tually were sold, a Consumer
Affairs Department spokes-
woman said.
Tickets Sought After Alleged Scam
BY TOM CORRIGAN
A bankrupt ticket brokerage
at the center of an alleged $70
million Ponzi scheme is suing
its recently deposed leader, Ja-
son Nissen, to claw back a block
of 144 tickets to this years U.S.
Open Tennis Championships.
The lawsuit, filed Wednes-
day in U.S. Bankruptcy Court in
New York, names Mr. Nissen, a
former Queens math teacher,
and his father, alleging they are
clinging to about $50,000 in
tickets that should be used to
repay victims of the alleged
fraud.
The ticketing business, Na-
tional Events Holdings LLC, is
also seeking a temporary re-
straining order to prevent Mr.
AL BELLO/GETTY IMAGES
Nissen from selling the tickets,
some of which are already be-
ing offered on online ex-
changes, court papers say. If
Mr. Nissen proceeds with sell-
ing the tickets, lawyers for the
company say there is almost
no chance that the proceeds of
such sales could ever be traced
and recovered.
National Events, which filed
for chapter 11 protection in
June, is working to pay back
tens of millions of dollars it
owes to alleged victims of the
purported Ponzi scheme who
are now creditors in the bank-
ruptcy. But the value of the re-
maining ticket inventory is esti-
mated to cover only a fraction
of the companys debts.
Traditionally kicking off on
the last Monday of August, the
U.S. Open is the final tourna-
* *
Speaker Held His Own With Christie
BY KATE KING
In the days before Gov. Chris
Christie was photographed on
the sand with his family on an
empty New Jersey beach, he
had hoped another state official
would be blamed for the closure
of state government.
This Facility is CLOSED Be-
cause of this Man, read fliers
posted on New Jersey govern-
ment buildings and at entrances
to state parks last weekend af-
ter a budget impasse between
the governor and Democratic
lawmakers prompted a shut-
down of nonessential state ser-
vices. The fliers, approved by
Mr. Christie and paid for with
government funds, displayed
the photograph and phone
number of the governors chief
adversary in the dispute: As-
sembly Speaker Vincent Prieto.
From the beginning of the
budget battle, Mr. Christie, a
Republican, sought to cast Mr.
Prieto, the mild-mannered and
mustachioed Democratic leader
of the Legislatures lower cham-
ber, as responsible for the gov-
ernment shutdown.
In the end it was Mr. Christie
Dance Event in Full Swing at Lincoln Center
BY CHARLES PASSY
Lincoln Center is often re-
garded as New York Citys
home for highbrow perfor-
mances, be it a
FOOD & Balanchine ballet
CULTURE or a Beethoven
symphony.
But on a re-
cent weeknight, the center took
a breather of sorts to channel
its inner disco diva.
The occasion was a 70s-
themed dance party that saw
revelers strut their stuff while
a band played hit after hit from
the mirror-ball era. An instruc-
tor even gave the crowd a pre-
party lesson in how to execute
the perfect hustle, the signa-
ture disco dance.
The disco night was part of
a much larger event in the cen-
ters more traditional-minded
lineup. Dubbed Midsummer
Night Swing, the three-week af-
fair, which runs through July
15, has become one of the
venues hotly anticipated an-
nual features.
Each night brings some of
the citys top amateur dancers
to Damrosch Park on the cen-
ters campus. Crowds typically
number in the thousands, in-
cluding those who opt to pay
up to $20 to dance on a floor
the center installs under the
bandstand.
As the disco night attested,
Midsummer Night Swing, now
in its 29th year, isnt just about
swing. Dance styles vary from
night to night: Ballroom and
salsa are the biggest draws, say
center officials, but the affair
The U.S. Opens mens singles finals last year at the USTA Billie Jean King National Tennis Center.
ment of the four tennis Grand
Slam events, attracting the
worlds top players to New
York.
The tickets are the last re-
maining assets the company
says it may be able to sell to
raise money for businesses and
individuals caught up in Mr.
Nissens allegedly fraudulent
enterprise.
In a letter last month, a law-
yer for Mr. Nissen indicated he
would fight the lawsuit, saying
the bankrupt remnants of the
ticketing business has no
NY
GREATER NEW YORK
who faced the most criticism af-
ter the Star-Ledger newspaper
photographed him on the beach
at a state park that was closed
to the public during the shut-
down. Mr. Christie said he was
on the beach for less than an
hour and wouldnt apologize for
spending time with his family.
The photo was mocked in
memes on social media, with
New Jersey-based public rela-
tions executive Karen Kessler
saying the image shifted the
sands for Prieto, and suddenly
the blame for the shutdown was
directed at the governor.
Mr. Prieto, meanwhile, re-
ceived a standing ovation from
his Democratic members as
they voted to finalize the bud-
get early Tuesday morning.
The governor was trying to
paint me that I was rigid, that I
didnt want to compromise and
that I stormed out of his office,
which is really B.S., Mr. Prieto
said. Thats not my style,
thats not what I do.
The shutdowns conclusion
marked a victory for Mr. Prieto
as he fights to stave off a chal-
lenge from a central New Jersey
assemblyman for the speaker-
Dancers recently went for a whirl during the three-week Midsummer Night Swing event on the Lincoln Center campus in Manhattan.
ventures into more eclectic ter-
ritory. Consider the Texas two-
step event on July 14, with
honky-tonk veterans Ray Ben-
son and Dale Watson providing
the music.
No matter what the style,
Midsummer Night Swing at-
tracts a fair number of regulars
such as Sidney Chaklai, a re-
markably limber 87-year-old
claim to the U.S. Open tickets.
The lawyer didnt respond to
requests for comment Thurs-
day. Mr. Nissen missed a dead-
line last month for him to turn
over the disputed tickets, ac-
cording to court papers.
Mr. Nissen was fired as chief
executive of National Events in
May and arrested later that
month on a federal fraud
charge. He raised money that
was supposed to be used to buy
blocks of premium and VIP
tickets to sporting and theatri-
cal events such as the Super
Assembly Speaker Vincent Prieto and Gov. Chris Christie in 2014.
ship, which is the third-most
powerful elected position in
New Jersey government. Mr.
Prieto said he is confident he
has the support of his caucus.
A Cuban immigrant who
who has been attending for at
least a decade. He said he pre-
fers the tango, waltz and salsa,
but he doesnt get too particu-
lar: If the music is great, I can
do that dance.
Because of the intimate na-
ture of dancing, it is perhaps no
surprise that over the years,
Midsummer Night Swing also
has seen a number of romances
Bowl and the Broadway hit
Hamilton. But much of the
money was used to pay off ear-
lier investors or to line Mr. Nis-
sens pocket, according to pros-
ecutors.
Mr. Nissen intends to plead
not guilty in the pending crimi-
nal case, according to his de-
fense attorney. Court papers
say there is no evidence inves-
tors or other company execu-
tives participated in the alleged
scheme.
Peg Brickley
contributed to this article.
Friday, July 7, 2017 | A9B
struction official and heads the
Hudson County Democratic Or-
ganization.
Mr. Prieto, 56 years old, gets
along well with lawmakers from
both parties in the state Assem-
bly where he has presided as
speaker since 2014. Jon Bram-
nick, who as minority leader
acts as Mr. Prietos Republican
counterweight in the chamber,
said, Im friendly with him and
I like him. I think hes generally
fair.
The governor has had a more
contentious relationship with
Mr. Prieto. In the two mens
most recent showdown, Mr.
MEL EVANS/ASSOCIATED PRESS
Christie wanted legislation that
would give the state more con-
trol over the finances of its
largest insurer. Mr. Prieto re-
fused to put the bill up for a
vote, saying it shouldnt be part
of the state budget process.
One of Mr. Prietos predeces-
sors, former Assembly Speaker
Joseph Doria, said he believed
came to the U.S. with his Mr. Prieto made the right move.
mother at age 10, Mr. Prieto is a Instead of just folding, he said
former body builder who I think we can make it better. I
worked as a plumber before en- think we should stand up, said
tering politics. He lives in Se- Mr. Doria, who is also from
caucus, where he is a city con- Hudson County.
YANA PASKOVA FOR THE WALL STREET JOURNAL
blossom. Last year, dance en- of a community celebration.
thusiast Richard Kurtzer pro- For Lincoln Center, Midsum-
posed to his similarly dance-ob- mer Night Swing is a chance to
sessed girlfriend Jennifer Euler welcome an audience beyond
at the event. She accepted. It those who usually attend its of-
was a wonderful, wonderful ferings of symphonic music,
moment, said Mr. Kurtzer. He ballet, opera and the like. Offi-
noted how he and Ms. Euler cials at the nonprofit center
know dozens of other Midsum- wont say if the event is a mon-
mer Night Swing attendees, so eymaker, but they hint that
the occasion became something isnt a top concern.
GREATER NEW YORK WATCH
NEW YORK CITY close to her and asked her to re-
peat what he said. Then he said
De Blasio to Join he would kill her; she yelled for
Rally in Germany help, and he fled, police said.
The hate-crimes task force is
Mayor Bill de Blasio is head- investigating.
ing to Germany to attend a rally Associated Press
related to the G-20 summit of
world leaders, his office said HUDSON RIVER
Thursday.
The mayor will attend several Replicas of Columbus
events surrounding the G-20 Sum- Ships Setting Sail
mit, including Saturdays Hamburg
Zeigt Haltung rally, Mr. de Blasios Replicas of two of Christo-
office said. Mr. de Blasio, a Demo- pher Columbuss ships are sailing
crat, will be a keynote speaker at up the Hudson River and will be
the rally for human rights and de- open to public tours this month.
mocracy, said the Hamburg Zeigt The Nia and Pinta docked at
Haltung Twitter account. Newburgh in New York and will
Anticapitalist demonstrators be open to tours Friday through
have been clashing with German Tuesday. The ships will be at the
police at protests surrounding Albany Yacht Club on July 14-16
the summit. and at Oswego on July 21-23.
A de Blasio spokesman said The ships are owned by the
the costs of travel will be paid Columbus Foundation, based in
by the German event organizers. the British Virgin Islands. It
Mike Vilensky doesnt have a replica of Colum-
buss third ship, the Santa Maria.
BROOKLYN Associated Press
Man Threatens Nun
Praying in Church CORRECTIONS 
AMPLIFICATIONS
A nun praying inside a Roman
Catholic church was harassed by
a man who said he didnt be-
lieve in her religion and then Paul Berger wrote a side-
threatened to kill her, police said. bar article published Wednes-
The shirtless man is seen day about the Federal Aviation
pacing in surveillance footage in Administrations airport pri-
the vestibule of the Catholic Co- vatization program. The tag-
Cathedral of St. Joseph in Brook- line incorrectly credited Jo-
lyn. Police said he approached seph De Avila.
the 49-year-old nun and said: I
dont believe in this because you Readers can alert The Wall Street
Journal to any errors in news articles
dont help poor people. She by emailing wsjcontact@wsj.com or
tried to ignore him and he got by calling 888-410-2667.
 For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
A10 | Friday, July 7, 2017 THE WALL STREET JOURNAL.

LIFE&ARTS
THEATER REVIEW

By Terry Teachout

A 21st-Century
Shakespeare
Festival

COLUMBIA PICTURES (2)

T CHARLES ERICKSON

FILM REVIEW | By Joe Morgenstern

Amelia Pedlow and Kate Hamill

Garrison, N.Y.
WHAT DOES IT MEAN to be a Shake-
speare festival in the second decade of
the 21st century? Like many such enter-
prises, the Hudson Valley Shakespeare
Festival is in the process of broadening
its once-sacrosanct repertory, so much
so that two of its three current main-
stage productions are premieres. One,
however, is a play about Shakespeare,
while the other is a new adaptation of a
novel as classicand familiaras any-
thing the Bard ever wrote. The biggest
and best news, though, is that both
plays are the stuff hits are made of, and
Hudson Valley has brought off a first-
class coup by launching them in the
same season.
Kate Hamill, whose stage versions of
Sense and Sensibility and Vanity
Fair were deservedly successful, has
now turned her hand to a second Jane
Austen novel, Pride and Prejudice. You
wouldnt think shed have anything fresh
to say about a book that to date has
been filmed a half-dozen times (not
counting Pride and Prejudice and Zom-
bies) and put on the stage at least as
often. Youd be wrong, though, for the
ever-ingenious Ms. Hamill has given us
something completely and delightfully
different, a smallish-cast period-dress
Pride and Prejudice that shes done
over in the revved-up manner of a Hol-
lywood screwball comedy. The language
is traditional but the approach is thor-
oughly modern, with six of the eight ac-
tors playing multiple roles, several of
them in drag. Cleverly compressedone
of the five Bennet sisters has vanished
into the memory holeand adapted
with fizzy, festive freedom, Ms. Hamills
P&P is full of Bringing Up Baby-style
slapstick and the kind of barely con-
trolled chaos that youd expect to see in
a five-door Feydeau farce.
Such a show demands worthy stag-
ing, and Amanda Dehnert, a prodigally
gifted director whose work is not yet
widely known on the East Coast, deliv-
ers the goods with gusto. Having previ-
ously seen her Oregon Shakespeare Fes-
tival productions of Julius Caesar and
My Fair Lady, I wouldnt have guessed
that Ms. Dehnert also has a knack for
pratfalls and spit takes, but her way
with P&P is so adroit as to make me
wonder what shed do with a full-
fledged farce like Loot or Noises
Off. At the same time, she also makes
sure to darken the mood just before in-
termission, reminding us that in the
19th century the finding of a husband
was no laughing matter for unmonied
Please see THEATER page A11
No Place Like
Homecoming
Marvels web-slinging series comes of age
NO COBWEBS on SpideySpider-Man:
Homecoming feels breezily, pleasingly
fresh. Its the sixth Spider-Man feature,
but the first to spin forth from Marvel Stu-
dios, and Marvel has done the improbable
by breathing big puffs of life into a declin-
ing franchise. The biggest is giving the title
role to Tom Holland, who is supported by
consistently bright writing (six writers get
screenplay credit) and sharp-witted direc-
tion by Jon Watts. (He did Clown and the
lean thriller Cop Car.) Here, as in Marvels
2016 Captain America: Civil
War, the concept of a comic-
book universediverse super-
heroes populating interlinked
filmsrepresents more than a
vast merchandising venture.
This universe seems like an ex-
pansive superfamily.
Mr. Hollands success is less
than surprising because he
made a brief but impressive
debut in the role during the
climactic battle of Civil War.
The new film picks up the
heros story a few months later
in New York. A high school kid,
as he has been before, Peter
Parkerthe third Peter Parker,
after Tobey Maguire and An-
drew Garfieldis younger in
spirit than his predecessors, Tom Holland, top, stars as Peter Parker, aka Spider-Man; Michael Keaton,
meaning hes a convincingly above, as Adrian Toomes, aka the Vulture.
real high school kid within the
kind of buoyant reality established for an
earlier generation by the filmmaker John
Hughes. (Peter is still living with his Aunt
May, who, as played by Marisa Tomei, is
younger in body as well as spirit.)
The main appeal of this latest iteration is
how quick, earnest and funny Peter can be.
(Quickness pervades the filmall the young
actors rush their lines.) The mystery of the
central performance is how Mr. Holland, an
Englishman only two years out of his teens,
has managed to acquire such a quicksilver
technique; hes sure to bring younger audi-
ences back to the multiplexes for a look-see
at a series that had been aging fast.
When Peter first takes Spider-Man public
as a local crime fighter in the borough of
Queens, a pretty girl in his high school is un-
impressed with the new superhero on the
block: Hes probably like 30, she says. But
no, hes very much like the 15-year-old he
isa hormone-fueled hotshot who is being
groomed for the Avengers team through an
internship sponsored by Tony Stark, aka Iron
Man. As he swings past a platform full of peo- (During Peters apprenticeship, almost all of
ple waiting for a train he asks, with cheerful
self-importance, Is everybody good?
The interplay between Peter and Tony is
extensive. That means the movie benefits
extensively from the presence and singular
panache of Robert Downey Jr., since Tony is
Peters role model in what is basically a
coming-of-age story, as well as a balance
wheel for a kid in a hurry to use superpow-
ers he hasnt mastered. And Peter gets the
formidable villain he deserves: Adrian
Toomes, aka the Vulture, a malign birdman
played with a flamboyant ferocity that be-
fits his wingspan by Michael Keatonwho,
of course, played another feathered flyer
less than three years ago in Birdman.
Three other characters distinguish them-
selves in the densely populated production:
Peters classmate and best buddy Ned (Ja-
cob Batalon), a chubby, scene-stealingly
charming nerd; Chris Evanss Captain Amer-
ica, who turns up as, of all things, a killingly
earnest motivational speaker in classroom
videos (and who demonstrates why its
worthwhile to wait for end-title cameos);
and Spider-Mans suit, which is less a gar-
ment than a weapons system with a person-
ality, thanks to Jennifer Connellys Suit
Lady, a sort of Siri with genuine smarts.
the suits advanced functions have been
turned off by whats called a Training
Wheels Protocol.)
For all its quirky wit and distinctive tex-
ture, Spider-Man: Homecoming, which was
photographed by Salvatore To-
tino, comes through with sev-
eral conventionally spectacular
action sequences. One of them
is set in a high school home-
coming dance. (The movies ti-
tle allows for another interpre-
tationSpideys homecoming
to Marvel Studios.) Others
grow out of an academic de-
cathlon in Washington, D.C.
(Spidey atop the Washington
Monument recalls King Kong
atop the Empire State Build-
ing), and a bifurcated transit of
the Staten Island Ferry.
The film has its lapses. The
story zips along zestfully until
a plot development involving
Adrian Toomes illustrates how
too many interlocking pieces
can turn arbitrary, breaking the
narrative spell. Product place-
ments for Audi cars are insistent, and
shameless. And this production loses its way
for a while, just as Wonder Woman did, in
one of those repetitive, out of scale and re-
lentlessly generic climactic battles that
seem to be the price one must pay for excel-
lent comic book epics as well as dull ones.
Happily, though, the production regains
its buoyancy toward the end. (Michael Gi-
acchinos score never for a moment loses its
brilliant luster.) The usual evolution in long-
running superhero franchises is from thrill-
ing action with a clever edge to bloated ac-
tion with increasingly toxic doses of self-
comment and self-irony. Thats not the case
with Spider-Man, which is genially aware
of itself and terrifically likeable. Only now is
this series coming of age.

TELEVISION REVIEW | By John Anderson

A HERO FOR THE REFERENCE OBSESSED

CANADIAN POLICE officer Paul
Cassidy awakes from a terrifying
nightmareGoodfellas is being
remade by Michael Bayto find a
reality thats almost as bad: Hes
been abducted by the evil Dr. Be-
nign and is about to be trans-
ported to a world thats half medi-
eval village and half Plan 9 From
Outer Space. The serial killer hes
with has been turned into a human
pickle. His puns are atrocious. And
then Paul finds a superhero cos-
tume that transforms him into
Apollo Gauntletwho, as the
theme song tells us, Fights evil /
Even when its not there.
Consider this a warning: Fall
asleep on the couch watching Car-
toon Network and you may wake
up in the middle of a feudal village
and Apollo, the latest addition to
the Adult Swim menu of animation
for grown-ups and, like many of
the programs offerings, more
ADULT SWIM
sodes created by Canadian anima-
tor Myles Langlois, the show main-
tains a dismissive attitude toward
narrative logic and maintains a
steady stream of what would
never be termed bon mots: a char-
acter named Orenthal; a musical
reference to Gilbert & Sullivan;
jokes about Ed Gein, Brundlefly
(Jeff Goldblums nom de bug in
The Fly) and Werner Herzog.
Apollo takes Dr. Benign to task for
making obscure pop references.
But thats exactly what Apollo
Gauntlet is all about.
A note: The on-air debut of
Apollo Gauntlet is being adver-
tised as Sunday at 12:15 a.m. Its
not: Its Monday at 12:15 a.m.
Elsewhere, the premiere is an-
nounced as July 9 at 12:15 a.m.
Its actually July 10 at 12:15 a.m.
Adult Swim contends that the
real dates confuse its audience.
We hope this helps.

amusing than hilarious. Still, it ea-

gerly pushes its naively animated Apollo Gauntlet
envelope towards a giddily warped Begins Monday, 12:15 a.m., Cartoon
Apollo Gauntlet, center, takes on the evil Dr. Benign in Adult Swims newest animated show. reality. Dispensed in 11-minute epi- Network
 For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
THE WALL STREET JOURNAL. Friday, July 7, 2017 | A11

LIFE & ARTS

FILM REVIEW | By Joe Morgenstern

A Movie to Haunt
Your Memory
David Lowerys feature follows a ghost on his long journey home

The cast of Pride and Prejudice at the Hudson Valley Shakespeare Festival

THEATER
Continued from page A10
women like the Bennet sisters.
In addition to having written
the script, Ms. Hamill plays
Lizzy Bennet with winning imp-
ishness, and Jason OConnell, a
well-known Hudson Valley face,
is wonderfully, almost incapaci-
tatingly shy as Mr. Darcy. Top
comic honors, though, go to
Mark Bedard, who doubles as
the fathomlessly snooty Miss
Bingley and the disgustingly ob-
sequious Mr. Collins. Either one
of his performances would have
been noteworthy, but that the
same person should be playing
both parts (as well as that of
Mr. Wickham) is a truly stupen-
dous piece of quick-change
clownery.
If you cant make it to Hudson
Valley, Ms. Dehnerts production
will be transferring to New
Yorks Primary Stages in Novem-
ber. I cant imagine that it will
stop there: Like Vanity Fair be-
fore it, Ms. Hamills Pride and
Prejudice is the kind of show
A24 (2)
period piece, a play about the
posthumous publication in 1623
of the First Folio, in which fully
authentic texts of most of
Shakespeares plays saw print
for the very first time. If that
sounds like dry-as-dust pedantry
to you, fear not: Ms. Gunderson,
whose plays are hugely popular
outside New York but has yet to
receive a major production in
Manhattan, has given us a seri-
ous comedy, by turns charming
and darkly poignant, in which a
history lesson is embedded so
gracefully that youll scarcely
know youve been schooled.
Davis McCallum, Hudson Val-
leys artistic director, has given
The Book of Will a lively stag-
ing thats as close to ideal as
its possible to get, but the play
is so soundly made that it
would come off as well in a less
deft production. The Book of
Will is a cinch to be taken up
by Shakespeare festivals all over
Americaas well it should be.
Hudson Valley Shakespeare
Festival
Boscobel House and Gardens,
Garrison, N.Y. ($21.75-$64.75),

that would flourish in a small 845-265-9575

Broadway house. Should P&P Pride and Prejudice, closes Sept. 4
In A Ghost Story Casey Affleck plays the husband of Rooney Mara, below. fail to receive the commercial
production it deserves, you can The Book of Will
WHAT KIND of film- They dont have bet that itll be the toast of the closes July 28
maker calls a ghost names and dont need regional-theater circuit.
story A Ghost Story in them, for the essence of Mr. Teachout is the Journals
our too-hip age? And the film isnt literal. The Book of Will drama critic. Billy and Me, his
seems to be asking us Rather, it has to do Lauren Gundersons The Book new play, opens at Palm Beach
to take it seriously with longinghers, but of Will, Hudson Valleys second Dramaworks on Dec. 8. Write to
when the ghost is noth- also his, after the premiere, is a different sort of him at tteachout@wsj.com.
ing more than a Hallow- woman he loves slips
eenish presence under a away from him and he
white sheet? A serenely finds himself not only
poetic filmmaker, as it out of body but adrift
turns out. David Lowery in time. Im afraid of
has made a haunting making the film sound
film about, among other pretentious by overde-
more elusive things, a scribing it when the
ghost that haunts a startling thing is how
bungalow. At first I simple it is, and how
thought it was odd, powerfully it evokes the
then silly, though flow of time. A familiar
maybe meant to be apparition in a sheet,
droll. I ended up thinking that A plota tone poem more than a the ghost is witness to a succes-
Ghost Story is deeply affecting, structured drama, with Casey Af- sion of extraordinary apparitions
and I wont forget it for a long fleck and Rooney Mara as hus- who, alive and thoroughly human,
T CHARLES ERICKSON (2)

time to come. band and wife. Mr. Affleck and are working, talking, cooking,
Mr. Lowerys previous feature, Ms. Mara are a married couple homesteading, striving to be re-
a remake of Disneys Petes again in A Ghost Story, which membered and, inevitably, dying.
Dragon, was notable for its hu- has less of a plot. He dies, and There are mysteries here, not the
manity. The film before that, goes back to their suburban house least of them being how such a
Aint Them Bodies Saints, was a to find her, reconnect with her modest little movie can evoke such
doomed romance with a negligible and console her. profound feelings. Maryn Shaw, Sean McNall and Kurt Rhoads in The Book of Will

Weather 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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BACKFLOW | By Matt Gaffney movie) 45 Popular
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For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
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A12 | Friday, July 7, 2017
Hitting on a Winning Strategy
The Arizona Diamondbacks decided not to tank after a 69-win season. They are now one of baseballs best teams.
BY JARED DIAMOND
Phoenix
WHEN MIKE HAZEN took over as
the Arizona Diamondbacks gen-
eral manager in October, he inher-
ited the type of dire situation that
often results in a teardown.
Despite considerable hype head-
ing into 2016, the Diamondbacks
finished with a record of 69-93,
failing to top the .500 mark for the
fifth consecutive season. Even
worse, they faced payroll con-
straints in the wake of the $206.5
million mega-deal their previous
regime awarded pitcher Zack
Greinke and possessed a farm sys-
tem that ranked among the weak-
est in the majors. Team president
and CEO Derrick Hall described
the team as being in a state of
disarray and bewilderment.
These days, such circumstances
usually lead to a familiar chain of
eventsthe quick sell-off of all
valuable assets, followed by a
slow, painful climb back to promi-
nence. You might know this con-
troversial strategy by another
name: tanking, one of the trendi-
est and dirtiest words in sports.
But Hazen chose a different ap-
proach, one that almost seemed
bold in the modern baseball land-
scape. He decided to keep the core
of his new team intact and at-
tempt to compete for a title right
away. Rewarding his faith, the Dia-
mondbacks are headed toward the
All-Star break with the second-
best record in the National League,
careening toward their first play-
off appearance since 2011.
All because Hazen had the au-
dacity to try to win now.
We didnt necessarily feel like
69 wins was indicative of the tal-
ent on the roster, Hazen said in a
recent interview at Chase Field.
We felt like putting this team to-
gether for another run was maybe
something we were more ready to
focus on.
Given the recent success stories
of organizations that essentially
opted to suffer a stretch of ex-
tended futility in the name of fu-
ture prosperity, few would have
blamed Hazen for blowing the Dia-
mondbacks up and starting over.
The Chicago Cubs benefited
from that blueprint, winning the
World Series a year ago after dis-
mantling their roster to acquire a
string of top draft picks. So did
the Houston Astros, who averaged
104 losses from 2011 through 2014
before emerging as baseballs best
team thus far in 2017. The San Di-
ego Padres look like the next fran-
chise prepared to follow that path.
In light of that, Hall said that
when he hired Hazen, he made it
clear that the Diamondbacks
BY JOSHUA ROBINSON
London
LESS THAN A MONTH after win-
ning the French Open, Jelena Osta-
penko arrived at Wimbledons Cen-
tre Court this week for her first
major tournament as a Grand Slam
champion. Then she kept walking.
She wove her way through the
crowds, past a gift shop, all the
way out to Court 18, where she
was playing last. Most fans were
heading home. Then in the second
round on Wednesday, Ostapenko
suffered the same indignity again,
this time on Court 12. Any further
away and shed have been running
around a parking lot.
It was not amazing to play on
those courts, because I won a
Grand Slam just a couple weeks
ago and I think I deserve to play
on a better court, she said. I ac-
tually dont like to play when there
is no one watching the matchits
not really fun.
Wimbledon, it turns out, doesnt
care what youve just won when it
comes to scheduling. Youll play
where they tell you to play.
What the show-court crowds
have been missing, however, is one
of the most recklessly entertaining
players in the game. The 20-year-
old Latvian isnt merely aggressive.
She goes for broke on every shot.
In the French Open final last
month, Ostapenko made a down-
right irresponsible 54 unforced er-
rors, but compensated by smack-
ing 54 winners. Now, at
Wimbledon, shes sticking to her
guns with one significant adjust-
ment: she wants to be even wilder.
I was playing a little bit less
risky on clay, Ostapenko said.
But here you have to play aggres-
sive because its very hard to move
on grass.
The Arizona Diamondbacks Paul Goldschmidt, left, scores the winning run in the 11th inning during a game against the Philadelphia Phillies on June 25.
would allow him the freedom to
give us the game plan, and wed
follow it. That included the possi-
bility of a total rebuild.
If Mike Hazen had said, Look,
I think weve got to start all over,
lets shop all of our players, we
would have been on board, Hall
said.
A legitimate slugger in
Paul Goldschmidt and an
ace in Zack Greinke set
the team apart.
Hazen didnt recommend that,
not right away, at least. Instead,
he assembled his front office,
tapped Torey Lovullo, the Boston
Red Sox bench coach, as the Dia-
mondbacks manager and dis-
cussed the future.
As expected, Lovullo focused
more on the short-term, while Ha-
zen maintained a more long-term
view. But in the end, Lovullo said,
everybody agreed that in their
first season together, It wasnt
going to be a complete teardown.
WIMBLEDON
OSTAPENKO
IS STILL GOING
FOR BROKE
She is so erratic, even within a
single match, that her last eight
matches have all sprawled into
third sets. But over that span, she
has lost just one match.
In her first-round win here, Os-
tapenko posted 24 winners to 23
unforced errors, while losing her
second set 6-1 in the process. Then
on Wednesday, she had 39 un-
forced errors (18 more than her
opponent) and 31 winners to rally
from one set down.
What she lacks in power on her
SPORTS
MLB
It was going to be, Lets evaluate,
and lets see what we have and
watch how they perform.
They felt comfortable with that
because, for all of the Diamond-
backs problems last year, they
boasted two pieces that set them
apart from most of their peers: a
legitimate superstar in slugging
first baseman Paul Goldschmidt
and a bonafide ace in Greinke.
They also endured several key in-
juries last season that derailed
their chances.
That, coupled with a collection
of young players on the rise, like
shortstop Chris Owings and All-
Star third baseman Jake Lamb,
convinced Hazen and his staff to
give 2017 a shot.
Hazen behaved this winter as if
he thought the Diamondbacks
could contend immediately. He
completed one significant trade,
bolstering the pitching rotation by
sending shortstop Jean Segura
the NL leader in hits last yearto
the Seattle Mariners for 24-year-
old right-hander Taijuan Walker.
Beyond that, he focused on
depth, accumulating useful veteran
role players to round out the ros-
terthe type of moves good teams
make as subtle, but important, fin-
serve, she makes up for in free-
swinging groundstrokes that either
land in the corners or miss by a
mile. On more than one occasion,
after walloping a ball straight into
the net, she simply turned to her
team in the bleachers and
shrugged as if to say, Look, even I
dont know sometimes.
But Ostapenko is just following
the grass-court advice she got be-
fore the tournament from her
coachAnabel Medina Garrigues
who happens to be a clay-court ex-
ishing touches. He signed free-
agent outfielders Gregor Blanco
and Daniel Descalso, who filled in swirled about whether the Dia-
admirably while star A.J. Pollock
dealt with an injury. He bolstered
the bullpen by adding closer Fer- about trading Greinke or even
nando Rodney and setup man
Jorge De La Rosa.
Most important, Diamondbacks
players say, Hazen turned his at-
tention to behind the plate. He
parted ways with Wellington Cas-
tillo, a strong hitter, and replaced
him with Jeff Mathis and Chris
Iannetta, experienced catchers that
specialize in defense. With their
presence, the Diamondbacks, who
had an MLB-worst 5.09 ERA last
season, have the second-best ERA
in the majors.
Those guys have played a huge
part in our success so far, Gold-
schmidt said. They have a lot of
experience, World Series rings, big
plays in the playoffs, and so every-
ones just followed their lead. that he wanted to see how theyd
While most computer projec-
tions viewed the Diamondbacks as
an underachiever in 2016, they still
pegged them as no better than a
.500 team in 2017. (Hazen said
that due to some of the Diamond-
backs injuries in 2016, We felt and winning at a pretty good
like the projections may be a little
Jelena Ostapenko
reacts during a
match at Wimbledon.
pert.
She told me that on grass
mostly the player who is playing
more aggressive or trying to play
aggressive from the first couple of
shots is winning, Ostapenko said,
adding that she felt the grass was
even slower these days than it was
when she won the Wimbledon ju-
niors in 2014.
High-risk as her approach may
be, it has helped her ward off the
hangover that tends to affect first- isnt Centre Court, but its a whole
time Slam winners in their next
THE WALL STREET JOURNAL.
T-B: ROSS D. FRANKLIN/ASSOCIATED PRESS; JULIAN FINNEY/GETTY IMAGES
bit low on us.)
That explains why speculation
mondbacks wouldor should
press the reset button and think
Goldschmidt for a prospect haul.
Lovullo heard the talk and admit-
ted that the team might need to
start over if we didnt go out and
perform quickly in 2017. The Dia-
mondbacks did just that, immedi-
ately silencing their critics.
Of course, questions remain.
The Diamondbacks will need to
improve their struggling farm sys-
tem. Hazen said that in terms of
long-term goals to sustain suc-
cess, I dont think were there yet.
But for this season, the Dia-
mondbacks look like serious con-
tenders. For that, Hazen deserves
credit.
The fact that he thought there
were some tangible pieces here
perform under a different leader-
ship and a new season, we were
willing to go for it, Hall said. At
some point, we would have had to
figure out when to pull the plug.
Fortunately weve been winning
pace.
major tournament.
Of the 10 women before Osta-
penko to claim their first career
Slams, dating back to 2008, eight
failed to reach the third round of
the next one on the calendar. Gar-
bine Muguruza, for instance, broke
through at Roland Garros last year,
only to slip up in the second round
of Wimbledon.
Two players, Flavia Pennetta
and Marion Bartoli, preferred to
retire from the sport before play-
ing another one. And four crashed
out in the first round.
So Ostapenko is already ahead
of the curve, just as she was in
Paris where she arrived unseeded,
having never reached even the
fourth round of a Slam. There, she
ran through a depleted womens
field that was missing its center of
gravity in the absence of the preg-
nant Serena Williams. But this will
be the reality of womens tennis
for a while to come: wide open
Grand Slam fields and opportuni-
ties for first-time winners.
I knew I can make it one day,
Ostapenko said of winning the
French. But I didnt think it [was]
going to happen, like, when I was
still 19 years old.
Less than four weeks on, shes
noticing some subtle differences.
On her Air Baltic flight from Paris
back to Latvia, she said she was al-
lowed to fly in the cockpit. In her
news conferences, shes also get-
ting more frivolous questionsa
sign of making it in pro tennis. For
instance: has she heard from Lat-
vias most famous athlete, the
NBAs Kristaps Porzingis, since win-
ning Roland-Garros? (She hasnt.)
And on Thursday evening, Osta-
penko found one more change: her
third-round match had landed on a
Wimbledon show court, No. 2. it
lot closer than Court 12.
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
THE WALL STREET JOURNAL.
Washingtons Leak Mob
T o d a y s
Washington is
overrun by
two kinds of
crimes.
The first is
the still-spec-
POTOMAC
WATCH ulative kind,
which the
By Kimberley
Washington
A. Strassel
press corps
obsesses
overTrump-Russia collusion,
obstruction of justicedespite
no evidence of its existence.
By all accounts, special coun-
sel Robert Muellers growing
team of Democratic lawyers
intends to devote itself to this
fiction.
Yet if Mr. Mueller were se-
rious about bringing down a
threat to the nation, or even
carving himself a place in his-
tory, hed be tackling the sec-
ond kind of crime, the real
kind. These are the crimes
that occur constantly and ac-
tually harm national security,
even if theyre routinely ig-
nored by a self-interested me-
dia. We are talking of course
about the serial leaking of
sensitive information, the
daily profession of a new gov-
ernment elite akin to an orga-
nized crime network.
Lucky for Mr. Mueller, he
doesnt even need his army of
legal investigators to get an
immediate handle on this ma-
fia. He can instead stroll down
to the Senate Committee on
Homeland Security and Gov-
ernment Affairs. Thats the
purview of Sen. Ron Johnson,
who keeps dogged oversight
of government among his
many self-set tasks.
That mission resulted this
How to Be a Buddhist in Todays World
HOUSES OF Once people ularism, inclusiveness and di-
WORSHIP adopt a reli- versity for some 3,000 years. pal challenges today: commu- have had mutually beneficial
By The Dalai gion, they
Lama should prac-
tice it sin-
cerely. Truly
believing in God, Buddha, Al-
lah or Shiva should inspire
one to be an honest human be-
ing. Some people claim to
have faith in their religion but
act counter to its ethical in-
junctions. They pray for the
success of their dishonest and
corrupt actions, asking God or
Buddha for help in covering
up their wrongdoings. There is
no point in such people de-
scribing themselves as reli-
gious.
Today the world faces a cri-
sis related to lack of respect
for spiritual principles and
ethical values. Such virtues
cannot be forced on society by
legislation or by science, nor
can fear inspire ethical con-
duct. Rather, people must
have conviction in the worth
of ethical principles so that
they want to live ethically.
The U.S. and India, for ex-
ample, have solid governmen-
tal institutions, but many of
the people involved lack ethi-
cal principles. Self-discipline
and self-restraint of all citi-
zensfrom CEOs to lawmak-
ers to teachersare needed to
create a good society. But
these virtues cannot be im-
posed from the outside. They
require inner cultivation. This
is why spirituality and religion
are relevant in the modern
world.
India, where I now live, has
been home to the ideas of sec-
I Want My Doctors to Help Me Live, Not Die
By J.J. Hanson
A
ggressive brain cancer
is trying to end my life.
The best doctors in the
world are racing to find a
cure. Meanwhile, legislation
promoting assisted suicide all
over the nation would dis-
mantle essential protections
and care on which I, and so
many others, depend as we
fight terminal illnesses. Bills
that would legalize or expand
assisted suicide have been in-
troduced in 29 states.
Three years ago, I was liv-
ing the American dream. I
was happily married, our son
had just turned 1, and I had a
job I loved. My life changed in
an instant. I had a grand mal
seizure at work and went to
the hospital. Doctors ran
tests, including a CT scan, but
could not find anything
wrong. As they were prepar-
ing to send me home, my wife
demanded an MRI.
Thats when they found the
week in a shocking staff analy-
sis of the recent deluge of se-
cret-spilling, and the manner
in which these unauthorized
disclosures are harming na-
tional security. Its the first
congressional scrutiny of the
leaksand notable for its
straight-up nature. This is no
partisan document. Its a
bloodless accounting of a na-
tional-security failure, perpe-
trated by dozens of govern-
ment employees willfully
breaking the law.
The first 126 days of the
Trump administration fea-
tured 125 stories that leaked
harmful information. Just un-
der one a day. The committee
staff judged the stories
against a 2009 Barack Obama
executive order that laid out
what counted as information
likely to damage national se-
curity. And as it chose to not
include borderline leaks or
palace intrigue stories, that
number is an understatement.
For reference, the first 126
days of the Obama term fea-
tured 18 stories that met the
criteria. Ten of those were ac-
tually leaks about George W.
Bushs torture memo, which
Mr. Obama released.
The Trump leaks show the
sweeping nature of this enter-
prise, coming as they have
from U.S. officials, former
U.S. officials, senior U.S. of-
ficials, intelligence officials,
national security officials,
Justice Department officials,
defense officials and law-
enforcement officials. One
story cited more than two
dozen anonymous sources.
Alarmingly, the titles, and the
nature of the information dis-
Religion faces three princi- minded scientists, and we
One philosophical tradition as-
serts that only what we know
through our five senses exists.
Other Indian philosophical
schools criticize this nihilistic
view but still regard the peo-
ple who hold it as rishis, or
sages. I promote this type of
secularism: to be a kind per-
son who does not harm others
regardless of profound reli-
gious differences.
In previous centuries, Ti-
betans knew little about the
rest of the world. We lived on
a high and broad plateau sur-
rounded by the worlds tallest
mountains. Almost everyone,
except for a small community
of Muslims, was Buddhist.
Very few foreigners came to
our land. Since we went into
exile in 1959, Tibetans have
been in contact with the rest
of the world. We relate with
religions, ethnic groups and
cultures that hold a broad
spectrum of views.
Further, Tibetan youth now
receive a modern education in
which they are exposed to
opinions not traditionally
found in their community. It is
now imperative that Tibetan
Buddhists be able to explain
clearly their tenets and beliefs
to others using reason. Simply
quoting from Buddhist scrip-
tures does not convince peo-
ple who did not grow up as
Buddhists of the validity of
the Buddhas doctrine. If we
try to prove points only by
quoting scripture, these peo-
ple may respond: Everyone
has a book to quote from!
cancergrade 4 glioblastoma
multiforme. The neurosur-
geon told me it was inopera-
ble; my prognosis was four
months to live. Three doctors
told me there was nothing
they could do. Surgery, che-
motherapy and radiation
rarely work on this type of
brain cancer.
Assisted suicide
and the temptation
of despair.
Im a U.S. Marine Corps
veteran of Iraq. Ive been
through a lot in my life and
always resolved never to give
up, but there was a moment
after my diagnosis when I felt
despair. In that moment, had
assisted suicide been an op-
tion, I might have taken it.
With my familys support, I
came through that depres-
sion. But not everyone is
OPINION
closed, indicate that many
leaks are coming directly from
the U.S. intelligence commu-
nity.
Whats been disclosed? The
contents of wiretapped infor-
mation. The names of individ-
uals the U.S. monitors, and
where they are located. The
Trying to topple
Trump, current and
ex-officials damage
national security.
communications channels
used to monitor targets.
Which agencies are monitor-
ing. Intelligence intercepts.
FBI interviews. Grand jury
subpoenas. Secret surveil-
lance-court details. Internal
discussions. Military opera-
tions intelligence. The con-
tents of the presidents calls
with foreign leaders.
The analysis lays out the
real and the assumed fallout.
One clear example is the May
stories hyperventilating that
Mr. Trump shared classified
intelligence with the Russians.
Subsequent leaks suggested
Israel provided the intelli-
gence, about Islamic State.
This revelation caused a diplo-
matic incident, and reportedly
a change in the way Israel
shares with the U.S. Even for-
mer Obama CIA Director John
Brennan called the leak ap- take action that would rein in
palling.
How many foreign allies are
pulling back? How many will
work with a U.S. government
that has disclosed military
nism, modern science and the
combination of consumerism
and materialism. Although the
Cold War ended decades ago,
communist beliefs and govern-
ments still strongly affect life
in Buddhist countries. In Ti-
bet, the communist govern-
ment controls the ordination
of monks and nuns while also
Religion now faces
three main challenges:
communism, science
and consumerism.
regulating life in the monas-
teries and nunneries. It con-
trols the education system,
teaching children that Bud-
dhism is old-fashioned.
Modern science, up until
now, has confined itself to
studying phenomena that are
material in nature. Scientists
largely examine only what can
be measured with scientific
instruments, limiting the
scope of their investigations
and their understanding of the
universe. Phenomena such as
rebirth and the existence of
the mind as separate from the
brain are beyond the scope of
scientific investigation. Some
scientists, although they have
no proof that these phenom-
ena do not exist, consider
them unworthy of consider-
ation. But there is reason for
optimism. In recent years, I
have met with many open-
lucky enough to have that
kind of support.
So despite the doctors
pessimistic prognosis, I pur-
sued standard and experimen-
tal treatments. I knew doctors
werent always right and I
was going to fight for every
moment of life I had left. That
was three years ago. Today
our second child is on the
way.
Sadly, too many others
thrown into clinical depres-
sion by a grim prognosis, ill-
ness-induced disability or
fears of being a burdenlose
hope and become willing to
take their own lives. A study
conducted in Oregon in 2006
found 25% of patients re-
questing assisted suicide were
depressed, and several of
them went on to receive the
lethal medication.
Legislation being pushed
throughout the country pro-
motes assisted suicide for
cases like mine. Instead of
providing support and work-
plans, weapons systems and
cybersecurity tactics? What
have our enemies learned?
One March story divulged sen-
sitive FBI data on U.S. border
vulnerabilities, in hopes of un-
dercutting Mr. Trumps travel
order.
The Johnson report doesnt
go here, but lets go ourselves:
This is lawbreaking, in the aid
of a political hit job. The leak-
ing syndicate cant claim whis-
tleblower status, since it has
yet to leak a piece of evidence
showing Trump wrongdoing.
This is about taking out a
president. And with a role
model like James Comeywho
wrote secret memos with the
express purpose of leaking
and launching a special coun-
selthats no surprise.
But as Mr. Mueller surely
knows, the Espionage Act
doesnt trifle with intentions.
As even the nonpartisan Con-
gressional Research Service
has noted, leaks enjoy no
First Amendment protection,
regardless of the motives,
and no accused leaker has
ever been acquitted based on
a finding that the public inter-
est was so great that it justi-
fied unlawful disclosure.
Mr. Mueller is sitting
astride a leak crime wave, run
by a bureaucratic underworld
that is happy to harm U.S. in-
terests if it maims a president.
He can dig four years into
Trump hearsay and innuendo.
Or he can, more immediately,
the lawbreakers and restore
some calm to the Capitol and
the media. Thats how to re-
ally promote law and order.
Write to kim@wsj.com.
discussions that have high-
lighted our common points as
well as our diverging ideas
expanding the world views of
scientists and Buddhists in the
process.
Then there is materialism
and consumerism. Religion
values ethical conduct, which
may involve delayed gratifica-
tion, whereas consumerism di-
rects us toward immediate
happiness. Faith traditions
stress inner satisfaction and a
peaceful mind, while material-
ism says that happiness comes
from external objects. Reli-
gious values such as kindness,
generosity and honesty get
lost in the rush to make more
money and have more and
better possessions. Many
peoples minds are confused
about what happiness is and
how to create its causes.
If you study the Buddhas
teachings, you may find that
some of them are in harmony
with your views on societal
values, science and consumer-
ismand some of them are
not. That is fine. Continue to
investigate and reflect on
what you discover. In this way,
whatever conclusion you reach
will be based on reason, not
simply on tradition, peer pres-
sure or blind faith.
The 14th Dalai Lama, Ten-
zin Gyatso, is the spiritual
leader of Tibet. He is co-au-
thor, with Thubten Chodron,
of Approaching the Buddhist
Path, from which this article
is adapted.
ing to make life more com-
fortable, this legislation
would encourage victims to
choose the least expensive
optiondeath. We cannot
trust insurance companies,
which are profit-driven busi-
nesses, to continue offering
quality care to terminally ill
patients. They will choose the
cheaper option every time.
Ive seen the danger of as-
sisted suicide, and that is
what moved me to dedicate
the last year and a half to
fighting assisted-suicide leg-
islation across the country
with the Patients Rights Ac-
tion Fund. If suicide becomes
a normal medical treatment
for terminally ill patients,
lives will be tragically short-
ened, as patients who might
have outlived their prognoses
by months or even years kill
themselves prematurely.
Mr. Hanson is president of
the Patients Rights Action
Fund.
Friday, July 7, 2017 | A13
BOOKSHELF | By Tom Perrotta
The Monster
In Fenway Park
Papi: My Story
By David Ortiz with Michael Holley
(Houghton Mifflin Harcourt, 262 pages, $28)
I
loved the Red Sox as a child because of my older
brothers. From the beginning, they warned me. The Sox
always lose when it counts the most, they would say.
Always. And the team did keep losing in the clutch, the
worst example being its collapse against the New York Mets
in 1986. (I watched Game Six as a nervous 10-year-old, my
head and body covered in a knitted blanket.) By 2013, the
world had changed. The Sox had won the World Series in
2004 and 2007 and now would fight for a third crown. My
oldest brother, Leo, and I went to Game Two in Boston and
saw the Sox lose 4-2 to the St. Louis Cardinals. Unlike the
tortured Sox fans we once were, the two of us by now had
no worries or doubts. In Game Six, which we again saw from
Fenway seats, the Sox closed the deal. We slapped hands
with everyone, raised our arms and yelped for another title.
Leo and I enjoyed every
minute of that night and
know who is responsible:
David Ortiz.
The players gathering
next week in Miamis All-
Star Game will dazzle with
home runs, nasty pitches
and stolen bases. But overall
the game will lack pizzazz
without a visit from Mr. Ortiz,
whose final All-Star
appearance last year inspired
enough cheers and claps to
flood the ears. The player was
as charismatic then as ever be-
fore: To me, he has always seemed
like Babe Ruth reincarnate. His cheeks and
nose, like Ruths, were big and his smile broad. Like Ruths,
his swing was vicious (he hit 541 home runs in his career).
And when baseball counts the most, in the playoffs, he played
his best: 17 home runs in 85 games with 61 runs batted in. In
14 World Series games, Mr. Ortiz smacked hits at a .455 aver-
age. In the 2013 World Series, he hit .688 with eight walks,
two homers and a 1.188 slugging percentage.
In Papi: My Story, Mr. Ortiz talks with longtime sports
writer Michael Holley about that historic series and a lot
more. Mr. Holley writes crisp, straightforward and organized
prose, moving swiftly from the players childhood in the Do-
minican Republic to his early failure with the Minnesota
Twins and then, at Boston, his eventual dominance. Yet the
book sounds a lot like Mr. Ortizs voice, especially when it
comes to the people the player adoresthe pitcher Pedro
Martnez, for exampleand the ones he dislikes.
In 2013, David Ortiz was 37 years old with sore
muscles. His bat would propel the Red Sox
to World Series champions that October.
Often these are managers. Theres his disdain for Twins
manager Tom Kelly (I know hes recognized as a good base-
ball man, but he struck me as a guy who believed his players
were dumb.) Theres his disrespect for onetime Red Sox
manager Terry Francona, who once embarrassed Mr. Ortiz in
the middle of a slump by pinch-hitting for him in an unim-
portant regular-season game. Remember temperamental
manager Bobby Valentine? Once he cussed so wildly at a
teammate that Mr. Ortiz felt it went too far. Listen, he
writes, if it had been me, I would have gone up to him, right
in front of the fans, and dropped a punch.
Mr. Ortiz also talks about his 2003 positive drug test,
revealed in 2009. Like most writers who have covered
sports for years, Im skeptical when athletes make claims
of innocence. With Mr. Ortiz, my hearts too big. I want to
believe it when he says that he was careless about supple-
ments and vitamins, but I never bought steroids or used
steroids. High-ranking baseball officials back him up, too.
In the book, Mr. Ortiz says that major-league baseball
tested him for drugs more than anybody over the period
from 2004 until his retirement in 2016. Does that clinch it?
Most would say, no way. As for me, Im sticking with
him. I had done my best work in the testing era, not the
steroid era, he writes.
Of all Mr. Ortizs efforts, his best by far came in 2013. He
was 37 years old at this point, and he had to loosen up more
before at-bats, often struggling with stiff and sore muscles.
But he still could hit the ball. This was also the year that ter-
rorists bombed the Boston Marathon, killing three and injur-
ing hundreds. In a speech Mr. Ortiz ripped the attack with
one of his often-used F-words and made everyone cheer.
On paper, the 2013 Sox were beatable, just like any high-
scoring team that had so-so starters. They didnt have the
best defense, though it was solid. They stole bases better
than most teams. They also struck out a lot. They had two
excellent pitchers: Jon Lester, who came up with the Red Sox
and survived a cancer diagnosis early in his career; and the
magical reliever Koji Uehara, signed as a free agent the year
before. Every other pitcher could be hit. Yet in every game,
no matter the score, they were calm, cheerful and relentless.
Mr. Ortiz led the way, especially in a playoff game against the
Detroit Tigers that defined him.
The Sox had lost the opening game at home and in the
second game trailed 5-1 in the eighth inning. After Sox second
baseman Dustin Pedroia loaded the bases, the Tigers brought
in Joaqun Benoit, who had struck out Mr. Ortiz earlier in the
season with a deadly change-up (the pitch looked like a 96-
mph fastball but was only 86 mph and had some fade).
Papi had slumped so far, going zero-for-six in the series,
with four strikeouts. But Mr. Ortizin part from studying
videowas ready for Mr. Benoit. He guessed that the change-
up would come first, and when it did, he smacked the ball,
low and fast, to right field. Outfielder Torii Hunter ran and
jumped into the wall but missed the ball. He flipped over
onto his head as a police officer posted in the bullpen raised
his arms in celebration. The Red Sox had tied the game, and
Mr. Ortiz knew what would come next. I knew then that we
would win the series, he says. Seriously. And they did.
Mr. Perrotta writes about tennis for the Journal and the
Weekly Standard, among other publications.
Coming in BOOKS this weekend
Jane Austen for every age Earths mass extinctions
Flying high with Nadar The scourge of Rome What
was skiffle? Fiction from Joshua Cohen & Francis
Spufford Barton Swaim on political books & more
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
A14 | Friday, July 7, 2017 THE WALL STREET JOURNAL.

OPINION
REVIEW & OUTLOOK LETTERS TO THE EDITOR

Trumps Defining Speech Whats the Lesson From the Scalise Shooting?

T
he White House description of Donald commitment by Saudi Arabia and other Muslim In The Answer to the Virginia Studies have shown that firearms
Trumps speech Thursday in Warsaw nations to combat an ideological menace that Shooting Isnt Looser Gun Laws (op- are used more than two million times a
ed, June 29), Democratic Rep. Don year for personal protection and that
was simply, Remarks by President threatens the world with terrorism. He com-
Beyer writes: With a federal con- the presence of a firearm, without a
Trump to the People of Po- pared this idea of mutual de- cealed-carry reciprocity law on the shot being fired, prevents crime in
land. In truth, Mr. Trumps In Poland, he asks the fense to the alliance of free books, people who have a record of many instances. How is this idea so
remarks were directed at the West to defend its values nations that defeated Nazism domestic violence or are experiencing terrible?
people of the world. Six and communism. a mental-health crisis could carry hid- JOEL WILKERSON
months into his first term of of faith and freedom. But the speechs most pro- den, loaded guns in all 50 states. I Atlanta
office, Mr. Trump finally of- vocative argument was about never cease to be amazed at those
fered the core of what could our way of life. It came when who think laws and policies will stop Rep. Beyer claims reciprocity would
become a governing philosophy. It is a deter- he described how a million Poles stood with the scofflaws and mentally unbalanced decimate public safety. Thats simply
mined and affirmative defense of the Western Pope John Paul II in Victory Square in 1979 to among us. ridiculous and not supported by the
tradition. resist Soviet rule by chanting, We want God! Background checks and training be- facts. More states allow concealed
fore allowing firearm ownership and carry now than 20 years ago, and over
To be sure, Mr. Trumps speech also con- With that powerful declaration of who you
concealed carry are wise choices. that time violent crime has steadily de-
tained several pointed and welcome foreign- are, Mr. Trump said, you came to understand While I personally like the idea of con- creased.
policy statements. He assured Poland it would what to do and how to live. cealed-carry reciprocity, it does fly in I must correct Rep. Beyers inaccu-
not be held hostage to a single supplier of en- This is a warning to the West and a call to the face of individual states rights. racies regarding, as he puts it, silenc-
ergy, meaning Russia. He exhorted Russia to action. By remembering the Poles invocation The evil man who attempted to kill ers. Silencer is a Hollywood term. The
stop destabilizing Ukraine and elsewhere, to of God, Mr. Trump is clearly aligning himself our congressmen simply because they devices referred to dont silence a fire-
stop supporting Syria and Iran and instead with the same warning issued to Europe some were Republicans wasnt stopped by arm, they simply reduce the decibel
join the community of responsible nations. He years ago by Cardinal Joseph Ratzinger, who laws and policies. He was stopped by level of a firearm to levels that dont
explicitly committed to NATOs Article 5 on mu- became Pope Benedict. two brave people who could legally damage hearing. The correct term for
tual defense. Cardinal Ratzingers argument was that Eu- carry guns in those circumstances. these devices is suppressor. If you
Butand this shocked Washingtonthe rope needed to recognize that its turn toward RICHARD T. YOUNG are near a firearm with a suppressor
Greenville, Ill. when it is discharged, you will hear the
speech aimed higher. Like the best presidential aggressive secularism posed a real threat to its discharge.
speeches, it contained affirmations of ideas and survival. In Mr. Trumps formulation of that We already have federal laws that Its ironic that whenever one of
principles and related them to the current po- threat, we are obliged to confront forces, demand a background check on the these attempts at mass murder takes
litical moment. Americans, Poles and the na- whether they come from inside or out, from the sale of firearms. What is Rep. Beyer place, the first reaction is to make it
tions of Europe value individual freedom and South or the East, that threaten over time to talking about when he says he fears more difficult for law-abiding citizens
sovereignty, he said. This was more than a undermine these values and to erase the bonds people can buy guns without a back- to protect themselves. That has never
speech, though. It was an argument. One might of culture, faith and tradition that make us who ground check? Shooter James Hodg- worked before, so shouldnt we be
even call it an apologia for the West. we are. He warned about a lack of pride and kinson brought a handgun and rifle moving in the other direction?
Mr. Trump built his argument out of Po- confidence in our values. into Virginia despite its existing gun TIM ANDREWS
lands place in the history of the West, both as Mr. Trump is taking a clear stand against the laws and lack of reciprocity, which President, Shooters Committee On
confirms precisely the logic of the Political Education
a source of its cultureCopernicus, Chopin kind of gauzy globalism and vague multicultur-
pro-gun lobby. Gun laws do very little Rochester, N.Y.
and as a physical and spiritual battlefield, espe- alism represented by the worldview of, say, Ba- to deter criminals and simply serve to
cially during World War II. The word Mr. rack Obama and most contemporary Western hamper law-abiding citizens from pro- Regarding Rep. Thomas Massies
Trump came back to repeatedly to define this intellectuals, who are willing, even eager, to tecting themselves. Congressman, Defend Thyself (op-ed,
experience was threat. concede the argument to critics of the Wests The best lesson from the Hodgkinson June 26): Shouldnt our elected repre-
During and after the war, Poland survived traditions. case is to implement better background sentatives be able to defend them-
threats to its existence from Nazi Germany This is the speech Mr. Trump should have checks to deny guns to people with selves from attacks by loonie leftists
and the Soviet Union. Mr. Trump believes that given to introduce himself to the world at his mental-health or domestic-violence is- and crazed jihadists? No, they should
the West today confronts threats of a differ- Inauguration. In place of that speechs resent- sues and to extend concealed-carry rec- not. Politicians make laws that the rest
ent sort, threats both physical and cultural. ments, his Warsaw talk offered a better form iprocity so that if the background of us have to obey. Politicians should
This continent, said Mr. Trump, no longer of nationalism. It is a nationalism rooted in val- checks do fail, at least citizens can de- suffer the consequences of passing bad
fend themselves. There is also good sta- legislation as long as the rest of us
confronts the specter of communism. But to- ues and beliefsthe rule of law, freedom of ex-
tistical evidence supporting the obser- have to. Until the citizens of the Dis-
day were in the West, and we have to say pression, religious faith and freedom from op- vation that concealed-carry states have trict of Columbia are allowed to defend
there are dire threats to our security and to pressive governmentthat let Europe and then lower murder rates, and thats a good themselves from attackers, members of
our way of life. America rise to prominence. This, Mr. Trump start for a nonideological debate. Congress should also be defenseless.
He identified the most immediate security is saying, is worth whatever it takes to preserve ARI WEITZNER ROBERT CALVERT
threat as an oppressive ideology. He was talk- and protect. New York Chicago
ing about radical Islam, but it is worth noting It was an important and, we hope, a defining
that he never mentioned radical Islam or Is- speechfor the Trump Presidency and for Don-
lamic State. Instead, he described the recent ald Trump himself.
Dont Mess With Health Care That Is Working
Putins Assist for North Korea In laying out their vision for
health reform (Health-Reform Prin-
authors also favor giving states
more authority to diverge from fed-

P
ciples That Can Cross Party Lines, eral law. If so, it must be confined
resident Trump meets with Vladimir agree to this classification on behalf of the op-ed, June 26) Lanhee J. Chen and to the individual or small-employer
Putin on Friday, and the Russian strong- whole council since there is no consensus on Ron Pollack perpetuate certain market. Multistate employers rely
man sent his early regards on Thursday this issue. myths that, if acted upon, would on a federal framework to provide
by nixing a U.S. resolution at The likelier explanation is erode the foundation of employer- uniform, consistent benefits to em-
the U.N. Security Council con- Russia sends a message that Mr. Putin wanted to send sponsored health coverage. ployees wherever they live or work.
demning North Koreas latest a message that he can make The authors propose limiting the Over 177 million Americans re-
missile launch. The resolution
to Trump by nixing trouble if Mr. Trump resists a employee tax exclusion for em- ceive health benefits through an em-
didnt stipulate any action, a U.N. resolution. reset in U.S.-Russia ties. ployer-sponsored benefits. Such lim- ployer. We applaud consensus solu-
its are highly inequitable since plans tions, but undermining the most
but our friends the Russians Russia has also joined with
are typically expensive not because stable part of the health-coverage
still objected. China in trying to coax the they are too generous, but because system is something we should all
The Kremlin excuse is that the draft U.S. U.S. and South Korea to cease military exercises they cover a large share of older or agree isnt a good idea.
statement referred to the rocket as an intercon- in Northeast Asia in return for North Korea disabled workers, women, families JAMES A. KLEIN
tinental ballistic missile. Never mind that North freezing its nuclear program. But that would with chronic health conditions or President
Korea claims the missile was the equivalent of merely ratify Pyongyangs current stockpile catastrophic health expenses, or American Benefits Council
an ICBM, and the U.S. and other analysis of the and missile progress, assuming it even honored those living in high-cost areas. The Washington
trajectory and altitude suggest the same. such a freeze, which it would not.
The rationale [for Russias rejection] is that Russia and China are authoritarian powers
based on our (Ministry of Defenses) assess- seeking to dominate their regions, but the The ALI Hasnt Been Captured by Anybody
ment we cannot confirm that the missile can problem with tolerating such spheres of influ-
The American Law Institute (ALI) the law, principles of the law and
be classified as an ICBM, Russias U.N. mission ence is that regional powers often collaborate
isnt an advocacy group and doesnt model codes and studies. It is a work-
said in an email to other Security Council mem- to stir trouble beyond those spheres. As they employ lobbyists, unlike the American ing group of the best of the best, who
bers. Therefore we are not in a position to are now abetting North Korea. Tort Reform Association (ATRA) spend substantial volunteer time pro-
(Tort Lawyers Take Over the Ameri- ducing academic works, which are
can Law Institute by Tiger Joyce op- only influential to the extent that
The Japan-EU Trade Warning ed, June 30). anyone reads them.

J
The ALI is currently working on The ALI has for decades and de-
apanese and European Union leaders on to pursue bilateral trade deals, which is in keep- about 20 projects that span the spec- cades not only described the law as it
Thursday announced an agreement in ing with the Presidents transactional view of trum of the law, with few projects is but made suggestions as to what
principle to remove tariffs on 99% of diplomacy. But this may prove difficult if the touching on areas of interest to the the law should be when it is either
goods as well as other barriers ATRA. ALIs 3,000 elected members unclear or clearly wrong, and it has
U.S. is simultaneously raising
U.S. protectionism will tariffs and defending WTO are drawn from the best judges, law- always been clear when doing so. The
to trade. While it will be yers and law professors and is not ALI doesnt make law, judges do. To
phased in over many years hurt U.S. companies as cases brought by trading part- dominated by plaintiffs lawyers what- the extent that judges year after year
and some obstacles remain, ners. soever. cite the ALIs work in crafting their
the deal overcomes Japans countries cut other deals. The U.S. will pay a steeper The ALI publishes academic vol- legal opinions, the ALI can simply say
reluctance to open its market price if trade blocs such as umes in the form of restatements of thank you for recognizing its good
to food products as well as Eu- TPP proceed without America work.
ropes resistance to a free market for Japanese and forge links with other regions. While other If the ATRA doesnt like the ALIs
cars. Some have dubbed the deal cars for countries firms will benefit from new multilat- Taiwan Appreciates U.S. position on any given topic, it can do
cheese, but its effects will be more far-reach- eral rules, U.S. companies will have to navigate what it says its been doing, which is
Support on Mutual Interests lobbying legislatures to enact laws
ing than bilateral trade. what Columbia University economist Jagdish
Regarding your editorial Trumps that its members, corporations and
In particular it contains a message for Donald Bhagwati calls a spaghetti bowl of rules under
Signals to China (July 3): The U.S., insurance companies favor.
Trump, who pulled the U.S. out of the Trans-Pa- bilateral agreements. on the basis of the Taiwan Relations RICHARD G. JOHNSON
cific Partnership deal with Japan and 10 other For instance, a preferential tariff on a partic- Act and the Six Assurances, has stip- President, ALI
Pacific nations and has halted negotiations with ular product may only be available if the ex- ulated that it will provide Taiwan Cleveland
Europe on the Transatlantic Trade and Invest- porter can show that a certain percentage of the with weapons of a defensive nature.
ment Partnership. Trade will go on around the content was made in that country. The bureau- This arms sale will increase Tai-
world whether or not the U.S. decides to partici- cratic complications mean that many compa- wans ability to defend its airspace Pepper ...
pate. Had the U.S. remained in the Pacific pact, nies dont even apply to use the benefits offered and surrounding seas, thus strength-
American farmers and other exporters could under bilateral deals, and it may mean U.S. com- ening its overall defensive capabili-
And Salt
have enjoyed the increased sales to Japan that panies with global customers must move plants ties and helping to maintain regional THE WALL STREET JOURNAL

are now on offer to Europeans. out of America to stay competitive. stability and peace in the Taiwan
Strait.
Meanwhile, the Trump Administration is Thats why multilateral agreements are key
The government of Taiwan ex-
considering punitive tariffs on imported steel to the formation of the complex supply chains presses sincere gratitude to the U.S.
and other products under an obscure provision trading the components that make up most con- for this decision and looks forward
of a 1962 law. This could lead to tit-for-tat sanc- sumer goods. The Japan-EU deal is still bilat- to contributing to the Taiwan-U. S.
tions against American exporters, tie up the eral, but it could become the basis for more security partnership to ensure long-
U.S. in cases at the World Trade Organization deals that exclude the U.S. If Washington cedes term regional stability.
and make it more difficult to secure the opening trade leadership, it risks being left behind as BRIAN SU
of foreign markets to American goods. other countries set the rules and expand trade Taipei Economic and Cultural Office
If the U.S. continues on this protectionist among themselves. New York
path while the rest of the world pursues far- The irony is that the productivity of Ameri-
reaching trade deals, the effects are predictable. can manufacturers leads the world, and em- Letters intended for publication should
American exporters will have to pay more for ployment is rebounding. At a moment when U.S. be addressed to: The Editor, 1211 Avenue
of the Americas, New York, NY 10036,
their materials and face higher barriers abroad firms could grow their exports, the Trump Ad- or emailed to wsj.ltrs@wsj.com. Please
than their competitors. Consumers will pay ministration is burning bridges. The EU-Japan include your city and state. All letters
higher prices. This will cost American jobs and deal is a warning that others will take up trade are subject to editing, and unpublished
reduce incomes. leadership and capture the prosperity that letters can be neither acknowledged nor Why cant I get a hyphen in
returned.
The Trump Administration says it still plans Americans should enjoy. my name like my friends?
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
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THE WALL STREET JOURNAL.
Trump Must Stand Strong Against Putin
By David Satter
W
hen President Trump
meets Vladimir Putin
in Hamburg on Friday,
he needs to put aside
any thought of an-
other reset of U.S.-Russian rela-
tions. This is necessary not because
of Russias role in the 2016 U.S. elec-
tion but because any compromise of
the American deterrent posture to-
ward Russia will make a dangerous
international situation even worse.
U.S. and Russian officials have
cited Ukraine and Syria as areas
where agreement may be possible.
Yet sanctions against Russians close
The president needs
to show that the U.S.
is prepared to deter
Russian aggression.
to Mr. Putin, and against Russias
banking and energy industries, are
necessary to prevent a new outbreak
of war in Ukraine. After 10,000
deaths on all sides, including 3,000
civilians, Russia is building a new
railway line along its border with
Ukraine that would make it possible
to transfer troops to the south. At
the same time, Moscow is preparing
to hold its largest military exercises
since 1991, involving an estimated
400,000 to 500,000 troops, in Sep-
tember.
Whether or not Russia is prepar-
ing to attack, it has not achieved its
objectives in Ukraine, including the
Rule Reversal: How the Feds Can Challenge State Regulation
By Matthew Mitchell
And Ryan Nunn
A
n oft-repeated observation is
that government works best
when it is closest to the peo-
ple. But when local and state govern-
ments are unduly influenced by spe-
cial interests, the people may benefit
from the checks and balances of the
federal government. The Federal
Trade Commission furnishes a strik-
ing recent example.
Tasked with keeping American
markets open and competitive, a
large part of the FTCs mission is to
enforce the antitrust laws that pre-
vent businesses from hurting con-
sumers with anticompetitive prac-
tices. However, not all threats to a
free and competitive economy come
from the private sector. A new ini-
tiative by the FTC, the Economic
Liberty Task Force, will combat ex-
cessive and anticompetitive occupa-
tional licensing regulations at the
state and local levels.
Nearly one-fourth of American
workers are required by law to ob-
tain an occupational license to do
their jobs. Ideally, licensing is a reg-
ulatory tool of last resort to be used
Another Shareholder Proposal? McDonalds Deserves a Break Today
By James R. Copland
W
hen McDonalds stockhold-
ers gathered for the com-
panys annual meeting in
May, they had to vote on seven
shareholder proposals. Among
these were a proposal against the
companys use of antibiotics in its
meat supply, brought by the Bene-
dictine Sisters of Boerne, Texas;
and one by the nonprofit Holy Land
Principles, which wanted the com-
pany to modify its employment
practices in Israel. The Boerne Sis-
ters own 52 McDonalds shares. The
Holy Land group owns 47. None of
this years sponsoring shareholders
owned more than 0.0001% of the
companys stock.
All seven proposals failed. Four
were opposed by more than 90% of
shareholders. Still, all but two of the
proposals could be introduced on
McDonalds proxy ballots next year.
Holy Land Principles introduced the
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overthrow of the existing govern-
ment. The Ukrainian army has im-
proved rapidly. At the same time,
American and European sanctions
have caused huge losses to Mr. Pu-
tins cronies, who are believed to be
nominal owners of major assets
world-wide whose real beneficiary is
Putin. That may be why Russia aban-
doned plans to carve a New Russia
out of Ukrainian territory.
Last month, Syrian tanks
breached the line of separation be-
tween the forces of the Russian-
backed Assad regime and the U.S.-
backed and Kurdish-led Syrian
Democratic Forces. A Syrian fighter
jet began dropping bombs near U.S.-
backed forces, and the U.S. shot it
down. The Russians then threatened
to shoot down coalition aircraft. Af-
ter several hours of high tension, the
Russians agreed to ease the crisis
until next time.
Making a new reset even more
inadvisable are signs of Russian in-
volvement with terrorism in Ukraine,
Western Europe and in Russia itself.
On June 27, Maksim Shapoval, a col-
onel in Ukrainian military intelli-
gence, was killed by a car bomb in
central Kiev. Pavel Sheremet, a
Kremlin critic who wrote for the site
Ukrainskaya Pravda, was killed in an
identical manner in Kiev on July 20,
2016. Russia said Ukraine had failed
to protect him.
On March 23, Denis Voronenkov, a
former Russian legislator who fled
to Ukraine, was shot dead outside
the Premier Palace Hotel. There was
also an attempt to kill Amina Okueva
and her husband, Adam Osmayev,
Chechens who fought for Ukraine in
the Donbass. Artur Denisultanov-
when other approaches are insuffi-
cient to protect public health and
safety.
But licensing has become much
more prevalent in recent decades,
creating a patchwork of barriers to
work that are often arbitrary, costly
to workers and consumers, and bad
at protecting public safety. Many
states require licenses for activities
with almost no public risk, such as
flower arranging, auctioneering,
tour guiding and interior decorat-
ing. A 2015 Obama administration
report on occupational licensure
found little evidence that licensing
improved quality, and abundant evi-
dence that it raises consumer
prices.
The burden of licensing require-
ments falls especially hard on cer-
tain communities. Military spouses
are likelier than the general popula-
tion to work in licensed professions.
Immigrants also face a higher bur-
den, since many states require do-
mestic work experience or educa-
tion to obtain a license. And many
states make it difficult or impossible
for those with criminal records to
obtain a license.
Despite an emerging cross-ideo-
same anti-Israel proposal in 2016,
and almost 97% of shareholders
voted against it.
The Securities and Exchange Com-
mission has long enabled small
shareholders to pursue such agendas.
Under current SEC rules, any share-
holder in a publicly traded corpora-
tion that has held at least $2,000 in
stock for at least a year may place a
proposal on the companys proxy bal-
lot. A shareholder can introduce the
same proposal year after year, even
when 90% of all voting shareholders
consistently oppose it.
Such permissive rules come at a
cost. According to an SEC survey, it
costs more than $100,000 merely to
respond to a shareholder proposal
and include it on the ballot. The far
greater cost comes from the distrac-
tions such proposals create for direc-
tors and senior executives, as well as
the risk that companies will change
their policies under pressure.
McDonalds is unlikely to change
Robert Thomson
Chief Executive Officer, News Corp
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Chief Executive Officer and Publisher
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Professional Information Business:
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Ingrid Verschuren, Deputy Head
OPINION
Kurmakyev, a Chechen assassin pos-
ing as a French journalist, opened
fire on them, but Mrs. Okuyeva shot
the assassin four times. Both were
wounded but survived.
Mr. Denisultanov-Kurmakyev ear-
lier worked in Western Europe for
the pro-Russian Chechen leader
Ramzan Kadyrov, and many mem-
bers of the Chechen diaspora are liv-
ing in fear of Russian supported as-
sassins.
There are also questions about
terror in Russia. On April 3 a bomb
exploded in the St. Petersburg
metro, killing 14, many of them stu-
dents. The bombing came a week af-
ter nationwide anticorruption pro-
tests in which young people played
the main role. In the aftermath of
the attack, Yuri Shvytkin, a Duma
deputy, proposed a moratorium on
public protests.
logical consensus that occupational
licensure is often unnecessarily bur-
densome, excessive licensure per-
sistsand in many instances it is
expanding in size and scope. This
should come as no surprise: Many of
the benefits of licensing accrue to
well-organized groups of industry
The FTCs Economic
Liberty Task Force targets
state and local licensing
laws for antitrust scrutiny.
insiders, while the costs are more
diffuse. These insiders are able to
out-lobby the much larger group of
consumers and aspiring profession-
als who bear the costs of licensure
(often unknowingly) and who stand
to gain from liberalization.
This is where the FTC task force
comes in. Building on the FTCs ex-
cellent work related to occupational
licensingincluding friend-of-the-
court briefs, staff research and pub-
lic statements during both Republi-
can and Democratic administrations
its food-supply practices based on a
few nuns activism, but in many
cases boards have capitulated even
when most shareholders rejected a
proposal. Since the start of 2006, the
250 largest publicly traded compa-
nies in America, tracked in the Man-
hattan Institutes Proxy Monitor da-
tabase, have faced 515 proposals to
change how they disclose or engage
in political activity and lobbying.
Only one of these received majority
shareholder support over board op-
position. But the Center for Political
Accountability, the group leading the
shareholder-proposal push, claims
305 companies have changed their
approach to politics as a result of its
efforts.
Shareholder-proposal activism
can hurt other stockholders. A 2015
Manhattan Institute study by Tracie
Woidtke of the University of Tennes-
see found that social-investing activ-
ism on the part of public pension
funds was significantly associated
with lower share valuescosting
shareholders hundreds of billions of
dollars in total.
This could all change if Congress
enacts the Financial Choice Act 2.0.
Principally an overhaul of the 2010
Dodd-Frank financial legislation, the
602-page bill, which the House
Notable & Quotable: Poland
President Trump speaking in War-
saw, July 6:
Our defense is not just a commit-
ment of money, it is a commitment of
will. . . . The fundamental question of
our time is whether the West has the
will to survive. Do we have the confi-
dence in our values to defend them at
any cost? Do we have enough respect
for our citizens to protect our bor-
ders? Do we have the desire and the
courage to preserve our civilization
nounced plans to deploy the Termi-
REUTERS
Opposition leaders in Russia
noted that the Russian Ministry of
Emergency Situations reported two
explosions, one near the Technical
Institute station and the other on
the red line. A second bomb was
later found unexploded in a train on
the red line, raising the question of
how the authorities knew about the
second bomb before it was discov-
ered.
Mr. Trump must stick to a formal
exchange of positions to avoid being
drawn into a false logic. The Putin
regime treats the interests of the
state, which it identifies with itself,
as more important than any objec-
tive reality. When Mr. Assad used
chemical weapons, Mr. Putin said the
charges against Syria were a provo-
cation.
After Malaysian Airlines Flight 17
was shot down over Eastern Ukraine
the task force will provide a
repository of research accessible to
policy makers and the general pub-
lic. The task force will also solicit
reform ideas from a range of licens-
ing stakeholders, using professional
input to refine their approach. State
and local policy makers often lack
the time and resources to conduct
their own in-depth analyses of li-
censing regulations and can benefit
substantially from the hands-on as-
sistance the agency will provide.
This assistance is all the more
needed in light of the Supreme
Courts decision in North Carolina
State Board of Dental Examiners v.
FTC (2015). In that case, a state
board controlled by practicing den-
tists attempted to bar unlicensed
nondentists from whitening teeth.
The FTC objected to this anticom-
petitive regulatory action and ulti-
mately prevailed in the Supreme
Court.
Historically, certain state actions
have been immune from antitrust
scrutinyi.e., if the state organizes
the anticompetitive activity, its not
illegal. In the North Carolina case,
however, the high court held that if
members of an occupation dominate
passed last month, would also make
it harder to resubmit failed share-
holder proposals. Although a pro-
posal could be resubmitted if only 6%
of voting shareholders support it in
its first year, that threshold would
rise to 30% of voting shareholders by
its third year.
Such ballots can be useful,
but not when gadflies push
the same unpopular
agendas year after year.
The reform is modest. Historically,
the 30% threshold would exclude only
about one-third of all resubmitted
shareholder proposals. Still, the new
rule would prevent activists pushing
agendas with minuscule shareholder
support from co-opting corporate an-
nual meetings year after year.
The Choice Acts approach to
shareholder ownership is more
sweeping and more controversial.
The legislation would eliminate the
$2,000 ownership threshold and re-
quire shareholders to own 1% of the
companys stock to introduce a
shareholder proposal. In addition,
in the face of those who would sub-
vert and destroy it?
We can have the largest economies
and the most lethal weapons any-
where on Earth, but if we do not have
strong families and strong values,
then we will be weak and we will not
survive. If anyone forgets the critical
importance of these things, let them
come to one country that never has,
let them come to Poland and let them
come here to Warsaw and learn the
story of the Warsaw Uprising.
Friday, July 7, 2017 | A15
in July 2014, killing 298, the Rus-
sians said it was destroyed by a
Ukrainian missile and accused the
Dutch investigators of bias. In fact,
the missile came from a Russian sup-
plied Buk antiaircraft battery, and its
path from separatist-held territory
was identified by satellite data.
More recently, when the U.S. an-
nal High Altitude Area Defense mis-
sile-defense system in South Korea,
Sergey Ryabkov, Russias deputy for-
eign minister, declared it was time
to halt the demonization of North
Korea.
Faced with this type of mendacity,
Mr. Trump needs to show that at-
tempts at deception will not work
and that while specific, narrow
agreements may be possible, the U.S.
is prepared to deter Russian aggres-
sion.
The protest movement has reap-
peared in Russia. Denis Volkov, a re-
searcher with the Levada Center, has
explained the popularity of protest
leader Alexei Navalny among young
Russians. He focuses on simple but
crucial issues: it is bad to lie, steal,
and to be a hypocrite, Mr. Volkov
writes. Corruption and bribes are
wrong. In the face of this kind of
appeal, the U.S. cannot seek an un-
principled deal with Mr. Putin if it
wishes to have some influence over
Russias fate in the years ahead.
Mr. Satter is affiliated with the
Hudson Institute and Johns Hopkins
University. His book, The Less You
Know, the Better You Sleep: Russias
Road to Terror and Dictatorship un-
der Yeltsin and Putin (Yale), will be
out in paperback this summer.
a licensing board, then the states
political branches must actively su-
pervise the board in order to claim
immunity. This decision has spurred
policy makers everywhere to rethink
licensing regimes and presents addi-
tional opportunities for FTC en-
forcement.
The new FTC initiative can help
give a voice to the diffuse groups
harmed by anticompetitive licensing
regulations. And the Federal Trade
Commission is uniquely positioned
to tackle this issue, with its long-
standing and bipartisan tradition of
promoting competition, and a pro-
fessional staff well-versed in the
economic evidence.
As a federal agency with broad
responsibilities, the FTC is also less
susceptible to undue influence than
local regulatory boards, which tend
to be dominated by the professions
they regulate. For the sake of con-
sumers and workers everywhere, we
wish them luck.
Mr. Mitchell is a senior research
fellow at George Mason Universitys
Mercatus Center. Mr. Nunn is policy
director of the Brookings Institu-
tions Hamilton Project.
the shareholder would need to have
held the stock for three years, not
just one.
For most companies, the new
ownership rule makes sense, but as
the legislation proceeds, legislators
may wish to lower the threshold for
larger corporations, for which a 1%
threshold would preclude all but the
largest investors from submitting
proposals. In a proposal last year, the
Business Roundtable suggested a
0.15% threshold for the biggest com-
panies.
Overall, the Choice Act does not
go far enough. As I have previously
urged in these pages, the SEC should
go back to its former rule allowing
companies to exclude social- and pol-
icy-oriented shareholder proposals
from proxy ballots altogethera re-
sult consistent with the overwhelm-
ing majority of shareholder votes
and Ms. Woidtkes research demon-
strating the market cost of such ac-
tivism.
Most shareholder proposals, like
each of those faced by McDonalds,
are sponsored by individual corpo-
rate gadfly investors who repeat-
edly file similar proposals across a
broad set of companies, or groups
with religious, policy or pro-labor
agendas. Shareholder proposals can
be a useful way for stockholders to
communicate with corporate boards
about business concerns. But in each
of the past 12 years, institutional in-
vestors without an ideological pur-
pose or an affiliation with public or
private labor interests have spon-
sored less than 1% of all shareholder
proposals.
The Choice Acts proposed new
rules are largely consistent with this
reality and would better orient the
shareholder-proposal process toward
most stockholders economic inter-
ests.
Mr. Copland is the Manhattan In-
stitutes director of legal policy.
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
A16 | Friday, July 7, 2017
Syrian Deaths Spotlight Crisis in Lebanon
Fatalities in army
custody and in fires
illustrate worsening
position of refugees
BY RAJA ABDULRAHIM
QAB ELIAS, LebanonThe
deaths of four Syrians in Leba-
nese army custody and lethal
fires in two Syrian refugee
camps all in the past week
have refocused attention on
the worsening plight of more
than a million displaced per-
sons in Lebanon.
On Thursday, the Lebanese
human-rights minister called
for a probe into the deaths of
the men, who were among
more than 300 people the Leba-
nese army rounded up on June
30 in a raid on two refugee
camps. The army said it was
searching for terrorists, weap-
ons and explosives in the
camps in the Bekaa Valley town
of Arsal, near the Syrian border.
The military, which receives
millions of dollars in annual
U.S. aid, said Tuesday that the
four men died of chronic
health conditions that wors-
ened after their arrests, with-
out giving any further details
about their health issues.
Syrian refugees and activ-
ists in Arsal and the human-
rights organization the Work-
ing Group for Syrian Detainees
disputed this explanation.
Its clear they died from
torture, said Muhammad
Raed, a Syrian activist living
in Arsal. Everyone saw the
bodies and the torture marks
Hong Kong Protesters Enter Guilty Pleas
BY JOHN LYONS
HONG KONGA group of
Hong Kong activists pleaded
guilty to charges related to the
citys large-scale pro-democ-
racy protests in 2014, marking
a symbolic low for a move-
ment that attracted global at-
tention by challenging Chinese
authority, but has waned un-
der legal pressure from Bei-
jing.
The defendants included
Joshua Wong, 20 years old,
who became the face of a 79-
day student protest seeking
universal suffrage in the former
British colony, which retains
limited autonomy within China.
He admitted on Thursday to
defying a judges order to clear
one of the protest sites.
In the years since the dem-
onstrations, city authorities
have aggressively prosecuted
activists such as Mr. Wong,
sapping their momentum and
instilling a sense among many
Hong Kongers that resisting
Beijings will is futile, political
analysts say.
The pro-democracy move-
ment is hitting a low tide,
mainly because of intimidation
from Beijing, said Willy Lam,
a Hong Kong political analyst.
In Hong Kong last week,
RUSSIA
Hacker Is Sentenced
To 2 Years in Prison
A Moscow court sentenced
the alleged ringleader of a hack-
ing group that rattled Russias
political establishment to two
years in prison, the countrys of-
ficial court-reporting agency said
Thursday.
The sentencing of Vladimir
Anikeev by the Moscow City
Court followed his conviction for
unlawful access to computer in-
formation as part of a larger
conspiracy case, said the agency,
Rapsi.
Details of the trial are scant:
The court proceeding was
closed, and the case was classi-
fied as secret. But Mr. Anikeev
was described by the official
Rossiiskaya Gazeta newspaper
as the ringleader of Shaltai Bol-
tai, a group that took responsi-
bility for hacking the computers,
tablets and smartphones of se-
nior Russian officials.
Nathan Hodge
JAPAN
Floods, Slides Kill 2,
Scatter Many Others
Troops worked Thursday to
rescue hundreds of people
stranded by flooding in southern
Japan. At least two people were
found dead and nearly 20 were
An informal settlement for Syrian refugees partially burned down this week near the town of Bar Elias in the Bekaa Valley, Lebanon.
are evident on their corpses.
The mens families couldnt
be reached to comment.
Lebanese Human Rights
Minister Ayman Choucair called
for a transparent investigation
into everything that was shared
recently from photos and news
about the latest arrest opera-
tion in Arsal and into the rea-
sons that led to the death of a
number of detainees.
Student leaders Joshua Wong, left, and Lester Shum, second left, walk out of the High Court.
Chinese President Xi Jinping
issued a stern warning to the
city of seven million people,
calling any Hong Kong chal-
lenges to central government
power impermissible. Pro-
tests planned to mark Mr. Xis
visit either attracted far fewer
participants than expected or
were broken up by police.
Hong Kongs democracy
still unaccounted for in flooding
that wrecked homes, roads and
rice terraces.
Authorities in Fukuoka prefec-
ture, on Kyushu island, said one
man was found dead, buried by
a landslide. Six people were in-
jured and four others were miss-
ing and feared dead.
In neighboring Oita prefec-
ture, a 43-year-old man dug
from a mudslide was pro-
nounced dead and 15 other peo-
ple were unaccounted for.
Heavy rain warnings were in
effect for much of the southern
main island of Kyushu after Ty-
phoon Nanmadol swept across
Japan earlier in the week.
Associated Press
EUROPEAN UNION
London Is Warned
On Post-Brexit Trade
Bloc Brexit negotiator Michel
Barnier warned officials in Lon-
don that the U.K. wont have
frictionless trade with the EU
after it leaves.
In a discussion with trade
unions and business groups, Mr.
Barnier said he wasnt sure the
EU position was fully under-
stood across the Channel.
I have heard some people in
the U.K. argue that one can
leave the single market
and...achieve frictionless trade
that is not possible, he said.
Valentina Pop
WORLD NEWS
An estimated one-fifth of
Syrian refugees registered
with the United Nations live in
camps like the ones that were
raided over the past week,
with ramshackle shelters made
of timber, plywood and tarps.
They are frequently threatened
with evictions and Lebanese
laws that dont allow them to
build permanent homes.
Soldiers regularly raid the
movement has ebbed for other
reasons, as well. Protesters
appeared too radical for many
conservative Hong Kongers af-
ter some actions ended in dis-
turbances. Infighting stole mo-
mentum, while attention-
getting gambitssuch as the
decision of newly elected law-
makers to protest during
swearing-in ceremonies
WORLD WATCH
SWEPT AWAY: Mud surrounds buildings and debris in Asakura
City, Fukuoka prefecture, Japan, where at least one person died.
CANADA
Trade Imbalance
Widened in May
The countrys trade deficit al-
most doubled in May from the
previous month as imports from
THE WALL STREET JOURNAL.
elements or from disaster. On
Sunday, a fire broke out in the
Qab Elias camp in the Bekaa
Valley, jumping so quickly
from tent to tent that resi-
dents said they ran out with-
out shoes. In the chaos, they
grabbed any child nearby as
they fled the growing blaze,
unsure of where their own
children were.
Within an hour, flames de-
stroyed the entire encamp-
ment and a 2-year-old girl was
dead. Two days later, a second
fire broke out at another refu-
gee camp in the Bekaa Valley,
killing a 4-year-old girl.
The tarps distributed by
U.N. refugee agency are
treated with a flame retardant
chemical but few tents appear
SAM TARLING FOR THE WALL STREET JOURNAL
to have them. Most are
swathed in plastic banners ad-
vertising everything from 12-
year-old whiskey to scratch-
resistant kitchenware to
American movies. Next to the
banners, garbage piles up.
Things are not getting bet-
ter, said Josep Zapater, who
heads the UNHCR office in the
Bekaa Valley.
Human Rights Watch called
for a transparent and indepen-
dent investigation into the
camps, arresting men who lack discuss repatriating them even deaths of the four refugees af-
legal residency. in the midst of the war. ter the army said the health
The Syrian refugees make From an economic per- condition of the detainees de-
up about a quarter of Leba- spective and a social perspec- teriorated while in custody.
nons population, straining the tive, the situation is deterio- The mayor of Arsal said the
countrys already fragile infra- rating, said Dana Sleiman, a municipality helped transfer
structure and stoking tensions spokeswoman with the United the bodies back to their fami-
as they compete for jobs. Leb- Nations refugee agency in Leb- lies, who took photos before
anon imposes tough restric- anon. She added that 70% are they buried the bodies and
tions on Syrians ability to living below the poverty line. posted the photos online. The
work or gain legal residency Living in the tent camps of- images show bruised and
and officials here regularly fers little protection from the bloodied corpses.
Zambian
anti-Communist Party slo-
gansan act he said he
President
wouldnt repeat.
However, several pro-de-
mocracy activists insist their
Seeks New
movement is a long-term ef-
fort that could regain momen-
tum sooner than many think.
Authority
For example, Beijing is press- BY NICHOLAS BARIYO
ing Hong Kong to introduce an
antisedition law as well as a Zambias president called
school curriculum that pro- for a countrywide state of
motes the Chinese Communist emergency, as the political cri-
Partytwo initiatives that sis in one of Africas most sta-
sparked opposition in the past. ble and mineral-rich democra-
Education is something cies deepens.
that goes right into the home President Edgar Lungu said
on an issue that people care in a televised address late
about most, the future of their Wednesday that he would seek
children, said Nathan Law, a parliamentary approval for
BOBBY YIP/REUTERS
legislator who also faces dis- sweeping emergency powers,
qualification for failing prop- after months of politically moti-
erly to execute his oath. vated violence following the
At its peak in 2014, the jailing of opposition leader
Umbrella Movement led by Hakainde Hichilema for treason.
Mr. Wong and others shut If approved by lawmakers,
down parts of the city. Mr. the legislation would give Mr.
backfired by giving authorities Wong and several others were Lungu the power to censor the
excuses to remove them from charged with contempt of media and impose broad re-
the Legislative Council. court for interfering with a strictions on freedom of assem-
The atmosphere is not court order to clear a protest bly and movement. Security
very good, you have splits in stronghold in Mong Kok, forces on Thursday heightened
the movement, political perse- across Victoria Harbour from their presence in cities across
cutions, arrests, said Leung Hong Kong Island. the country, with mounted foot
Kwok-hung, an activist Legis- Mr. Wong said he pleaded and motorized patrols visible
lative Council member who guilty to take responsibility in the capital Lusaka, witnesses
may be disqualified from the for his civil disobedience and and officials said.
body for lacing his oath with uphold the rule of law. Mr. Lungu on Thursday de-
fended his move to impose
emergency measures, saying
he needed to restore sanity
to Africas second-largest cop-
per producer. The country is
sonally adjusted 1.09 billion Ca- in safe hands, do not panic,
nadian dollars (US$836.5 mil- the president, who was due to
lion), Statistics Canada said meet foreign ambassadors to
Thursday, compared with a re- explain the move, told report-
vised C$552 million shortfall in ers in Lusaka. These are acts
the previous month. of sabotage by the opposition
Traders were expecting a but they will all fail.
May trade deficit of C$500 mil- Mr. Lungus supporters
lion, according to a report from have for weeks been lobbying
Royal Bank of Canada. for emergency legislation after
Canadas monthly trade data a spate of violent attacks and
cover the export and import of arson, culminating in a fire
goods and dont include services. ripping through Zambias larg-
Paul Vieira est market on Tuesday.
The opposition United Party
MEXICO for National Development de-
cried Mr. Lungus move as an
Central Bankers illegal power grab.
JIJI PRESS/AGENCE FRANCE-PRESSE/GETTY IMAGES
Keep Powder Dry The state of emergency, if
mishandled, can backfire [on]
Central bankers agreed to be all of us, regardless of our po-
cautious in signaling that last litical affiliation, and we could
months interest-rate increase lose peace forever, the party
would be the last in the current said in a statement. There is
cycle, minutes to the meeting need that the situation in the
showed Thursday. country is handled with care.
The Bank of Mexicos board Political analysts said the
on June 22 voted 4-1 to raise presidents move suggests the
the overnight interest-rate tar- government will likely intensify
get by a quarter percentage its suppression of dissent and
point to 7%, its highest level could jeopardize talks with the
since 2009. International Monetary Fund
The bank said the rate was for a $1.3 billion bailout plan
now high enough to bring infla- that are at an advanced stage.
the U.S. hit a record high. Mean- tion back to its 3% target at the The actions of Mr. Lungu in-
while, export growth slowed in end of 2018. dicate that risks are being
the month, as sales abroad of The minutes showed the driven up quicker than previ-
metals and motor vehicles were board was cautious in calling a ously expected, said Gary van
offset by a decline in energy halt to the rate increases, and all Staden, a political analyst with
products. members agreed to stress that NKC African Economics. Spo-
Canadas merchandise trade the bank would remain vigilant. radic outbreaks of violence will
deficit in May widened to a sea- Anthony Harrup inevitably grow more frequent.
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
BUSINESS & FINANCE
2017 Dow Jones & Company. All Rights Reserved.
S&P 2409.75 g 0.94% S&P FIN g 0.66%
TV Shopping Rivals to Combine Forces
QVC, HSN try to keep
pace as consumers
turn to smartphones
for impulse purchases
BY SUZANNE KAPNER
Longtime rivals QVC and
the Home Shopping Network
have agreed to merge, as two
retailers built around cable
television adapt to a world
where impulse buying and
video watching is moving to
smartphones.
The companies, famous for
pitching products such as the
Miracle Mop and George Fore-
man grill, said Thursday they
have agreed to combine in an
all-stock transaction valued at
Seeking Partner, Dish Cozies Up With Amazon China
For years Dish Network
Corp. Chief Executive Charlie
Ergen has sought out deals
and partnerships with just
about every major telecom
company, from Sprint Corp. to
T-Mobile US Inc. to AT&T Inc.,
but to no avail.
By Shalini
Ramachandran,
Laura Stevens
and Ryan Knutson
Now, the satellite-television
mogul is turning his attention
to the technology world, and a
newand somewhat surpris-
ingpotential partner has
emerged: Amazon.com Inc.
CEO Jeff Bezos.
The two meneccentric bil-
lionaires with geek tendencies
and shared interest in space
and roboticshave gotten to
know each other better over the
past year and have discussed a
partnership to enter the wire-
less business, according to peo-
ple familiar with the matter.
Among the possibilities:
Amazon could help finance a
network Dish is building fo-
cused on the Internet of
Thingsthe idea that every-
thing from bikes to delivery
drones can have web connec-
tivity everywhere. Another
idea is that Amazon, as a
founding partner of Dishs new
wireless network, could invite
Prime members to pay a little
more a month for a connectiv-
ity or phone plan, one of the
people said.
No deal is imminent and it
is unclear if the companies will
move forward with a partner-
ship. Dish has discussed ver-
sions of the founding partner
concept with other technology
firms, one of the people famil-
iar with the matter said.
Amazon is taking a walk
versus a run approach with
Dish, adds one person familiar
with the talks. An all-out acqui-
Europe Jockeys to Lure
U.K. Firms With Perks
BY MAX COLCHESTER
AND JULIA-AMBRA VERLAINE
LONDONRegulators and
government officials across
Europe are trying to lure Lon-
don finance companies ahead
of Brexit, sparking a conti-
nentwide backroom bidding
war.
The sweeteners range from
the promise of cheap rents to
protection of bankers bo-
nuses. Its like an auction,
saic a lawyer advising several
finance companies on their
Brexit plans. The jockeying is
fostering tension among Eu-
ropean regulators and raising
concerns that risk is being si-
phoned unchecked into the
trade bloc.
Take Lloyds of London
Ltd. One of the worlds oldest
insurance markets, Lloyds
needed a Continental base so
its members could sell to Eu-
ropean Union clients after
Brexit. It explored Ireland, the
Netherlands and Luxembourg
as part of its hunt for a Euro-
pean home before settling on
Belgium.
Part of the attraction: Bel-
TECHNOLOGY: A CHINESE DISRUPTERS EMPIRE UNRAVELS B4
* * * **
S&P IT g 0.86% DJ TRANS g 0.72%
about $2.1 billion. QVC parent
Liberty Interactive Corp.,
controlled by cable magnate
John Malone, already owns a
38% stake in HSN.
While the home-shopping
channels were early adopters
of e-commerce and dont face
the same pressures as chains
with brick-and-mortar stores,
they are increasingly compet-
ing for consumer dollars with
Amazon.com Inc. QVCs sales
in the U.S. have declined in
each of the last three quarters.
Revenue at HSN has declined
for six straight quarters, and
the company has been search-
ing for a new CEO.
QVC Chief Executive Officer
Mike George, who will run the
combined company, said the
retailers face a tough environ-
Calling Around
Telecom and cable companies have explored a range of tie-ups.
ACTIVE DEALS AND TALKS
ob i le
T-M
int
Spr
4
4.
4
4.
AT&T
1 five months of 201710 times
Co
mc
a st
1 Comcast and Charter have agreed to seek each
1.
other's consent on future wireless deals.
2 Comcast and Charter each rents airwaves from
2.
Verizon.
3 Dish and Amazon may forge a wireless tie-up.
3.
4 Sprint is in talks with Charter and Comcast on a
4.
wireless deal.
Sources: staff reports; Getty Images (photos)
THE WALL STREET JOURNAL.
sition of Dish by Amazon is
highly unlikely, the people say.
Amazon and Dish declined to
comment.
The possibility of an Ama-
zon-Dish tie-up comes amid a
swirl of deal and partnership
talks in the wireless industry.
Cable companies, tech giants
and the incumbent telecom
carriers are all trying to posi-
gian law allowed for a struc-
ture that would minimize dis-
ruption post-Brexit. Lloyds
was given permission to rein-
sure all the business done on
the Continent back to Lon-
dona move some other Eu-
ropean regulators deemed too
risky. That means Lloyds
likely wont need to park hun-
dreds of staffers in its new
Belgian unit, officials say.
Not everyone was willing
to allow this, said Inga Beale,
Lloyds of Londons chief ex-
ecutive. A Belgian official said
the structure adheres to EU-
wide rules and is based on ex-
isting Belgian laws.
In Brussels, the export
agency points firms to consul-
tants who advise on ways to
reduce the countrys nearly
70% tax on cash bonuses, offi-
cials said.
Belgium isnt alone in mak-
ing life simpler for incoming
financiers. The Dutch central
bank recently posted an ex-
plainer on its website outlin-
ing how bankers can circum-
vent the countrys 20% cap on
bonus payments. In Vienna,
Please see EUROPE page B2
THE WALL STREET JOURNAL.
WSJ $ IDX g 0.22%
ment but that QVC and HSN
are different from typical e-
commerce companies, which
tend to be more transactional.
Our customers engage with us
most days over TV or digital
platforms, he said. They
form a connection with the
hosts of our shows.
The merger gives the busi-
ness greater scale to invest in
emerging technologies, Mr.
George said. While the com-
bined companies will operate
17 cable channels around the
globe, both QVC and HSN also
sell online and stream their
videos over the internet. The
combined entity will have an-
nual revenue of about $14 bil-
lion, with slightly more than
half coming from e-commerce.
Liberty had been interested
Di s
h T-M
Am
3 1
azo
n
on
2 China, one of the worlds
iz
Ver
2
2.
ter
Char
Amazon CEO
Jeff Bezos
Dish Network Chairman
Charles Ergen
tion themselves, as smart-
phones and the mobile web
capture more of consumers at-
tention, and as Washington
regulators engender both new
opportunities and obstacles.
Sprint was holding merger
talks with T-Mobile before put-
ting them on hold to explore a
deal with Comcast Corp. and
Charter Communications that
INSIDE
HILTON LOOKS
TO MIDPRICE
MARKET
Britain asidehave so far
HOSPITALITY, B3
S&P 500
DROPS ACROSS
ALL SECTORS
EQUITIES, B11
LIBOR 3M 1.304
in buying the rest of HSN for
years, even before the retail Ar-
mageddon, said Victor An-
thony, an analyst with Aegis
Capital. But for a long time,
HSNs shares traded at a pre-
mium to Libertys, making a
deal untenable, Mr. Anthony
said. In the last month, how-
ever, the stock multiples in-
verted.
HSN, which is more heavily
dependent on the U.S. market
and whose revenue is about a
third of QVCs, has been strug-
gling with shrinking sales. In
April, the company said long-
time CEO Mindy Grossman
was leaving to run Weight
Watchers International Inc.
HSN launched the idea of
home shopping in 1977, when it
Please see QVC page B2
TALKS THAT STALLED
ob i le
4 few expected. What began as a
int
Spr
AT&T
Co
mc
a st
1 Dish's 2013 hostile bid for Sprint was thwarted.
1.
2 AT&T wanted to buy Dish, but talks fell apart and it
2.
later acquired DirecTV.
3 Dish and T-Mobile merger talks in 2015 broke up.
3.
4 Sprint and T-Mobile merger talks are on hold as
4.
Sprint explores a partnership with Comcast and
Charter.
5.
5 Verizon this year unsuccessfully tried to combine
with Charter.
could bolster those companies
plans to offer wireless service.
Some industry observers think
the Sprint-cable talks could
push T-Mobile and its parent,
Deutsche Telekom AG, to re-
kindle deal discussions with
Dish after an earlier round in
2015 collapsed.
Messrs. Ergen and Bezos
have been crossing paths more
STREETWISE | By James Mackintosh
Everything Is Awesome! Now
Is the Time to Sell Your Stock
The
economys
fine,
inflations
nowhere to be
seen,
deflation risk has abated,
interest rates are low and
fears over European politics
fact that everything has
proved unfounded. Its easy
both to explain why markets
have been celebrating, and
why so many people are
worried that everythings
just too perfect.
The state of the economy
easily explains high stock
prices, low volatility and low
bond yields. Were in whats
increasingly being called a
Goldilocks economy, which
like Baby Bears porridge is
not too hot and not too cold.
Things have changed a lot
since the term was coined in
the early 1990s, as back then
growth was a lot higher and
acceptable inflation was
about double the current
NIKKEI (Midday) 19965.78 g 0.14%
QVC is controlled by John Malones Liberty Interactive.
Di s
h
3
Am
azo
2
on
iz
Ver
5 nearly 100,000 barrels of oil a
ter
Ch ar
often. They spent time to-
gether in March at a satellite
convention, where Mr. Bezoss
rocket company, Blue Origin
LLC, gave a presentation to Mr.
Ergens EchoStar Corp., a Dish
sister company that builds sat-
Please see DISH page B2
 Heard: This dish could be
extremely pricey...................B12
level. But the principle is the
same, with global growth
reasonable and little sign of
inflation that might push
central banks into a sudden
market-squeezing monetary
tightening.
Explanation is not the
same as justification. The
serious to worry about:
been awesome recently is
7.6%
The year-to-date increase in the
S&P 500 index this year.
little guide to the future of
the economy or inflation
and the rise in stocks makes
it less likely the general
awesomeness will continue.
The market adage has it
that markets climb a wall of
worry and slide down a
Friday, July 7, 2017 | B1
See more at WSJMarkets.com
QVC
Sucks Up
U.S. Oil
Exports
BY BRIAN SPEGELE
BEIJINGIt was a gusher
trickle of U.S. crude being sold
to China is turning into a flood,
the result of a surprise Ameri-
can glut that has made the
countrys oil cheaper than that
of Mideast rivals just two years
after Congress lifted a 40-year
export ban.
largest oil importers, bought
day from the U.S. in the first
the average in 2016. Imports in
April and May surged to more
than 180,000 barrels a day on
average, China customs data
show.
The shift has been greeted
with enthusiasm by American
producers, who have been try-
ing to pull the sector out of a
three-year price slump that has
sapped profits and jobs. Indus-
try executives and local offi-
cials are now scrambling to re-
tool ports in the Gulf of Mexico
to accommodate the large ves-
sels needed to ship vast quan-
tities of crude around the
globe.
While still far below the fig-
ure China pays its top suppli-
ersRussia, Saudi Arabia and
Angolathe bill for U.S. oil
could come in well above $1
billion this year, up from $150
million last year, according to
customs data.
A confluence of factors has
helped open the taps.
Falling production from
Chinas own aging fields has
Please see OIL page B2
slope of hope. Worry has all
but disappeared this year. As
Simon Smiles, chief
investment officer for
ultrahigh-net-worth clients
at UBS Wealth Management,
says, if the only thing to
worry about is North Korea,
there really isnt anything
How does it get better than
this?
Of course, everything
might continue to be
wonderful. The geopolitics of
Korea, Qatar and the South
China Sea aside, it is hard to
see anything especially
threatening on the horizon.
The trouble is that it is
almost by definition the
unexpected events that hit
markets, and the calm has
left investors less prepared
for bad news than usual. As
investors step further
outside their comfort zone in
the pursuit of gains, their
resilience to bad news is
Please see STREET page B10
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
B2 | Friday, July 7, 2017 * *** THE WALL STREET JOURNAL.

INDEX TO BUSINESSES BUSINESS & FINANCE

These indexes cite notable references to most parent companies and businesspeople
in todays edition. Articles on regional page inserts arent cited in these indexes.

A G O
AAC Technologies.....B10 General Electric .......... B3 Occidental Petroleum.B2
Aecom..........................B6 Goldman Sachs.........B12 Oncor...........................A1
AGIC Capital..............B10 Gotham City Research P
Alphabet....................B11 ...................................B10
Great Wall Motors ... B10 Patterson .................. B11
Amazon.com........B1,B12
People's United
Amplify Snack BrandsA9 H Financial..................B12
Apache.......................B11 Hilton Worldwide ....... B3 Precision Castparts....A1
Apple...............B3,B4,B11 Hobby Lobby Stores...B3
AT&T............................B1 Q
Honeywell ................... B3
Audi.............................B6 HSBC Holdings............B2 Qualcomm...................B3
B HSN.............................B1 QVC..............................B1
Berkshire Hathaway...A1 I R
Best Western Hotels Intel.............................B3 Ritedose....................B10
& Resorts...................B3 InterContinental Hotels S
C Group.........................B3 Samsung Electronics..B4
Campbell Soup............A1 J-K Saudi Arabian Oil ..... B11
Canon...........................B3 JPMorgan Chase.........B2 Saudi Aramco..............B2

A. R. COSTER/TOPICAL PRESS AGENCY/GETTY IMAGES

Carson Block.............B10
Charter Comm.............B1
China Evergrande......B10
China Huishan Dairy
Holdings..................B10
Chobani ....................... A1
Choice Hotels
International.............B3
Cirque du Soleil ..........B6
Citron Research........B10
Corinthian Colleges....A3
D Lloyd's of London.......B1
Deutsche Bank..........B10
Deutsche Telekom......B1
Dish Network ...... B1,B12
E-F
EchoStar......................B1
Endo International ..... A3
Kind.............................A9
KraussMaffei
Technologies...........B10
Kroger..........................B6
L
L Brands....................B11
LeEco Holdings ........... B4
Legend Holdings.........B4
Leggett & Platt.........B12
Liberty Interactive......B1
Lidl...............................B6
M-N
Marriott InternationalB3
Merck...........................B3
Muddy Waters..........B10
Mylan...........................B6
Netflix.........................B4
Shimmick.....................B6
Sigma-Aldrich.............B3
Sino-Forest................B10
Sinopec Group.............B2
SoundCloud.................B4
Sprint .......................... B1
T
Tesla............................B4
Teva Pharmaceutical
Industries..................B6
T-Mobile US.........B1,B12
Toshiba........................B3
Turing Pharmaceuticals
.....................................B6
U-V-W
UBS Group...........B2,B10
Verizon......................B12 Lloyds of London offices in 1924. The insurance market, one of the worlds oldest, plans to open a base in Belgium to serve the Continent.
Vizio ............................ B4

Facebook....................B11
Faraday Futures..........B4
Fosun International....B6
INDEX TO PEOPLE
B Frosh, Brian.................B6
Beamish, Freya.........B12
Bezos, Jeff...........B1,B12
C Healy, James...............B3
Chatwell, Peter.........B12
Choi Soon-sil...............B4
Chung Yoo-ra .............. B4
Colvin, Simon............B10
D Left, Andrew.............B10
Draghi, Mario.....B11,B12
E-F
Ergen, Charlie ............. B1
Farley, Tom................B10
Newfield ExplorationB11
Newmont Mining......B12
Noble Energy ............ B11
G-H
Gardner, Cory..............A7
Hogan, Larry...............B6
K-L
Kehoe, Tom...............B10
Lee Jae-yong...............B4
Lewis, Grant..............B12
Lungu, Edgar.............A16
M Vogel, Jim.................B11
Malone, John .............. B1
Volkswagen.................B6
Wal-Mart Stores.......B12
Whole Foods Market..B2
N European Banking Authority a
Nieves, Anthony.........A2
R tory agency decamped there
Rui, Oliver.................B10
S people familiar with the mat-
Salman, Mohammed bin
...................................B11
Schaaf, Lyle Vander....B3
Schuchat, Anne .......... A3
T-V-Z
Tchir, Peter................B11
Zandi, Mark ................ A2
EUROPE
Continued from the prior page
officials discussed giving the
rent-free office if the regula-
from London, according to
ter.
Still, the efforts are raising
eyebrows. Around the time
insurer American Interna-
tional Group Inc. chose to set
up a subsidiary in Luxem-
bourg in March, aggrieved
Irish officials complained to
European authorities that
U.K. Asks: Must
Firms Exit London?
LONDONThe head of the
U.K.s financial regulator Thurs-
day questioned whether finan-
cial firms need to relocate from
the City to maintain access to
the EUs financial markets.
Speaking in London, An-
drew Bailey, chief executive of
the Financial Conduct Author-
ity, defended free markets, say-
ing regulators and authorities
shouldnt dictate where compa-
nies are based.
The comments from one of
side the single market.
Many have indicated they
could move thousands of staff
into the EU once Britain leaves.
J.P. Morgan Chase & Co.
initially plans to move between
500 and 1,000 jobs out of Lon-
don, and bolster its operations
in Dublin, Luxembourg and
Frankfurt. UBS Group AG and
HSBC PLC have indicated they
are looking at options for
around 1,000 of their London-
based staff.
Mr. Bailey questioned
whether financial companies
required single-market access
to have the benefits of free
trade with the EU.
Does Brexit have to mean
abandoning the benefits of free
trade and open markets in fi-
nancial services? It should not.
Does it require membership of
the single market to get the
benefits of free trade with the
EU? No.
Mr. Bailey also discussed
the future for the U.K.s lucra-
tive clearing industry, which
has been the subject of scru-
tiny since the Brexit vote. The
EUs executive body has pro-
posed plans that could compel
clearinghouses that do a large
amount of their business in eu-
ros to move into the bloc.
Mr. Bailey said cross-border

OIL can oil to China could sputter

Continued from the prior page
forced the country to step up
its hunt for new sources of
crude. Imports are up 13% this
year through May, compared
with a year earlier, according
to customs data.
The search came as America
was opening oil exports in 2015
for the first time in four de-
cades amid a boom in U.S. oil
drilling, upending petroleum
flows. Political uncertainty in
the Middle East, including the
decision last month by Saudi
Arabia and other Arab nations
to cut ties with Qatar, also has
played a role.
If theres opportunity to
buy [oil] from somewhere else,
we should, said Lin Boqiang,
an energy expert at Xiamen
University who has advised
Beijing on oil policy. The pre-
condition is that it must be
economical.
The economics have tilted in
favor of the U.S. partly because
of production limits put in
place by the Organization of
the Petroleum Exporting Coun-
tries, which have pushed up
the price of benchmark Brent
and Dubai oil. At the same
time, rising shale production in
the U.S. has pushed down the
cost of American crude.
The new flow offers a bright
spot in a U.S.-China relation-
ship racked with challenges,
from North Korea to hackers to
the South China Sea. At indus-
try conferences in Beijing and
Singapore in March, executives
from state-owned Chinese
trader Unipec hailed a new
golden age for energy trade be-
tween the two countries. At-
tendees said the positive mes-
sage appeared directed at
Washington.
While much of the focus has
been on expanding U.S. natu-
ral-gas exports to China, oil
may prove another pillar in re-
ducing the U.S. trade deficit
with Chinaa key objective of
the Trump administration.
Unipecs parent, Sinopec
Group, declined to comment
on its U.S. imports.
The sudden rush of Ameri-
U.S. Oil Producers Find New Market: China
Chinas crude imports from the U.S. surged in recent months as U.S.
prices fell sharply compared with Mideast rivals. B1
Average imports of U.S. crude
by China, in thousands
of barrels a day
200
160
120
80
40
0 1 0 4
J F M A
2015 2016 2017
Sources: China General Administration of Customs (imports); Argus Media
(benchmark differential)
out just as quickly as it began.
U.S. crude will need to remain
cheaper than rivals offerings
some countries werent play-
ing fair, people familiar with
the matter say. European offi-
cials responded by saying EU
to make up for the higher cost laws should be applied con-
and longer time frame of trans- sistently across the region
porting oil from the Gulf Coast. and, in some instances, re-
It takes about six weeks for oil leasing nonbinding guidelines
to reach China from the Gulf for regulators on handling fi-
Coast, versus three weeks from nancial firms moving from
the Middle East. the U.K. to stay in the blocs
Because of the long haul to single market.
China, larger tankers are The EUs financial sector is
needed to boost economies of governed by a series of conti-
scale and bring down costs. nentwide guidelines. But the
That requires an upgrade of patchwork of national author-
U.S. ports to allow the biggest ities still has significant lee-
tankers, which can ferry 2 mil- way to interpret their own
lion barrels of oil at a time, to rules. Danile Nouy, who
load oil directly from the dock chairs the European Central
instead of transferring it from Banks supervisory arm, said
smaller vessels in the middle of in a speech last month she
the Gulf. was concerned lenders may
In May, Occidental Petro-
leum Corp. docked one such
supertanker at its oil terminal
along Corpus Christi Bay in
Texas for the first timea pre-
lude to what it hopes will be-
QVC
come a routine event. This Continued from the prior page
will be a game changer for began airing programming that
U.S. exports, said Cynthia showcased inventors, entrepre-
Walker, the companys senior neurs and designers plugging
vice president for midstream their wares. Its better known
and marketing operations and
development. The Houston-
personalities include Miracle
Mop inventor Joy Mangano,
based company says its Gulf who got her start on QVC be-
Coast terminal accounts for fore switching to HSN, and ce-
25% of the U.S. export market. lebrity chef Wolfgang Puck.
Driven by the growing de- QVC, which was founded in
mand from Asia, total U.S. ex- 1986, has focused on fashion
ports could hit 3 million bar- and beauty. Among the beauty
rels a day in the next few labels it helped to launch are
years, up from around 500,000 Philosophy, BareMinerals and
barrels a day last year, accord- Josie Maran.
ing to Occidental. Together, they have 23 mil-
Middle East oil giants arent lion global customers, includ-
likely to easily surrender lucra- ing about two million custom-
tive market share in China. ers that shop on both QVC and
Producers such as Saudi HSN. The business model
Aramco have been looking to counts on getting just enough
reverse declines, for example viewers who may be tuning in
by seeking investors from during the day or unwinding at
China in its planned initial night to make impulsive pur-
public offering, essentially giv- chases. The majority of QVC
ing China a vested interest in customers are women who on
the kingdoms future success. average make about 25 pur-
On Wednesday, Saudi Arabia chases each a year.
reduced the official selling price There are some clear ad-
it charges customers in Asia. vantages to scale, Mr. Anthony,
The prospect of a continued
drop in Mideast prices poses
the biggest threat to U.S. sup-
pliers China dream, as it could
erode Beijings desire to diver-
sify.
DISH
Continued from the prior page
ellite technology, people famil-
iar with the matter said. Mr.
Ergen in March also attended
Mr. Bezoss secretive, invite-
only MARS robotics and space
Differential between Dubai- conference. More recently, the
priced benchmark crude and two moguls met in May in Se-
U.S.-benchmark WTI attle, other people familiar
with the matter said.
$1
The two executives are both
eager disrupters: Mr. Ergen
0 Dubai founded Dish in 1980 to take
vs. Brent on cable TV and in 2015
1 launched Sling TV, the first on-
line live TV service created by
a traditional pay-TV provider
2
WTI to appeal to cord-cutters. Mr.
Midland Bezos has upended business
3 vs. Brent models from books to media
and is venturing into food re-
tail with Amazons planned ac-
M 2016 17
quisition of Whole Foods Mar-
ket Inc. valued at $13.7 billion.
Joining with Dish on a wire-
THE WALL STREET JOURNAL. less network could potentially
the U.K.s top regulators mark
a significant intervention in
the debate on the Citys fu-
ture after Brexit. Big financial
firms are drafting contingency
plans for Britains future out-
exploit supervisory loopholes
by carrying out banklike ac-
tivities by operating through
foreign branches or broker
dealers, which are not super-
vised at euro-area level, but
rather at national level.
A key issue is how much
EU and national regulators
will allow companies to keep
operations in the U.K. while
selling products to European
clients. Lloyds of London,
founded in a London coffee
shop in the 17th century,
Merging Channels
A look at how the two TV
sellers stack up.
$3.6B
2016
REVENUE
HEADQUARTERS St. Petersburg, Fla.
LONG-TERM DEBT $0.5B
EMPLOYEES
6,500
= 1,000
REACH IN THE U.S. 91.4M households
MAJOR Joy Mangano
BRANDS Wolfgang Puck Kitchen
IMAN Global Chic
*Includes Zulily Source: the companies
the analyst said. They can ne-
gotiate better pricing with sup-
pliers, better shipping costs
and other back-end synergies.
Cord-cutting, or the cancel-
ing of home cable packages,
also poses a risk. But QVC said
consumers who are opting out
advance the online retail giants
ambitions in a range of new
businesses. It could give the
company quality control over
connectivity for its Amazon
Dash buttonswhich allow peo-
ple to reorder household goods
easilyand its Echo speaker
powered by its artificial intelli-
gence assistant Alexa. And it
could help improve Alexas
technology by putting the intel-
ligence throughout the nodes of
a wireless network, said one
wireless executive who has
worked with Amazon and Dish,
enabling Alexa to be faster and
more humanlike in its re-
sponses to searches due to
proximity to users locations.
It also could help Amazons
plans to operate a network of
drones delivering packages to
customers, wireless executives
and people familiar with Ama-
zons thinking said. The com-
pany could command and con-
trol those drones and
consider real-time changes in
directions or multi-stop delivery
When I hear people say
that firms need to relocate to
continue to benefit from ac-
cess to EU financial markets, I
start to seriously wonder, he
said.
doesnt have a major outpost
in Europe, but will likely need
one after Brexit so that mem-
bers using the market can sell
policies to European clients.
But picking up and moving
can be messy and expensive,
so Lloyds had a key demand
for prospective nations: Un-
derwriters should remain
based in Londonimportant
given the EU accounts for 11%,
or 2.93 billion ($3.8 billion),
of Lloyds of Londons gross
written insurance premiums.
$10.2B*
West Chester, Pa.
$6.4B
17,700
104M households
Bob Mackie
Josie Maran
Liz Claiborne New York
THE WALL STREET JOURNAL.
of pay-TV packagesgenerally
younger and lower-income
consumersarent its core
shoppers. The company also
said it increasingly is reaching
customers on different types
of devices.
We see a role for engaging
routes through messages from
the network, wrote Citigroup
analysts speculating about a
Dish-and-Amazon partnership
in the wake of a May report
from Satellite Business News.
Dish has been seeking to en-
ter the wireless business for
several years, as its core satel-
lite TV business shrinks. Dish
and its affiliated entities have
spent more than $21 billion
over the course of a decade to
acquire airwaves nationwide,
but Dish lacks a network to de-
ploy the spectrum and has
been on the hunt for a partner.
To meet a March 2020 gov-
ernment-mandated deadline to
offer service on some of its
spectrum, Dish is building a
bare-bones, fifth-generation,
or 5G, network that will cost
less than $1 billion.
Citi analysts said a partner-
ship between Dish and a tech-
nology giant like Amazon or
Google could take many forms.
Amazon could become a pre-
ferred customer on a new
regulatory cooperation, backed
up by joint supervisory over-
sight is very clearly preferable
to the cost and risk that is in-
troduced by a location-based
policy. Philip Georgiadis
Lloyds also wanted to keep as
many back-office staffers in
its headquarters as possible.
This setup could be done
by creating an entity that re-
insures all of Lloyds of Lon-
dons European business back
into the U.K.
EU rules give discretion to
individual countries on how
much reinsurance they allow.
But not all regulators are
comfortable with having 100%
of business shifted though a
subsidiary.
live video experiences, Mr.
George said. People are con-
suming more video content
than evernot just on TV, but
on tablet and mobile devices.
Following the merger, Lib-
erty plans to spin off its cable
operations into an independent
company and rename itself QVC
Group. The business will in-
clude the flash-sale website Zu-
lily, which QVC bought for $2.4
billion in 2015, and HSNs Cor-
nerstone division, which in-
cludes home retailer Ballard
Designs among other brands.
QVC, which has its main of-
fices in West Chester, Pa., ex-
pects to get cost savings of $75
million to $110 million annu-
ally from the deal in three to
five years. HSNs headquarters
will remain in St. Petersburg,
Fla., and Mr. George said it
would continue to operate as
an independent brand.
Under the terms of the pro-
posed deal, HSN shareholders
will receive 1.65 shares of
QVCs Series A stock for each
share of HSN. Based on
Wednesdays closing prices,
the companies said the offer
valued HSN at $40.36, or a
29% premium.
wireless network and commit
to spending a certain amount
on connectivity in exchange for
a below-market rate. It could
also provide cash upfront in
Dishs network to help pay for
the build out, in exchange for a
significantly discounted price
upon the launch of the network.
In a private meeting with in-
vestors and J.P. Morgan ana-
lysts in May, Mr. Ergen indi-
cated he believed technology
firms could be looking seri-
ously at the wireless business,
especially as the Trump admin-
istration seeks to roll back net
neutrality rules that were
meant to guard against carri-
ers extracting tolls from con-
tent companies for better ser-
vice, according to an attendee.
Theyre going to have to
make sure that in a world of
net neutralitybeing elimi-
nated, that theyre positioned
so that theyre not in a situa-
tion where their connectivity is
clogged, Mr. Ergen said earlier
in May.
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
THE WALL STREET JOURNAL.
Qualcomm Steps Up Fight With Apple
Chip maker seeks bar
on some iPhone and
iPad imports, alleging
patent infringement
BY TED GREENWALD
AND TRIPP MICKLE
Qualcomm Inc. is asking
federal trade authorities to
block imports of some iPhones
and iPads, opening a new front
in its dispute with Apple Inc.
and exposing both companies
to further risks to their most
profitable businesses.
Qualcomm said it plans to
file a complaint Friday with the
U.S. International Trade Com-
mission to halt imports of Ap-
EU Flags Missteps
By GE and Others
In Filing for Deals
BY NATALIA DROZDIAK
BRUSSELSThe European
Unions antitrust watchdog ac-
cused General Electric Co.,
Japans Canon Inc., as well as
deal partners Merck KGaA and
Sigma-Aldrich Corp. of
breaching the blocs merger
rules.
The moves come as the EU
is trying to drive home the
need for companies to submit
accurate and truthful informa-
tion when registering a deal
for antitrust review with Brus-
sels.
The EU said General Elec-
tric may have misled regula-
tors during a review of GEs
$1.65 billion deal for LM Wind
Power, while German pharma-
ceuticals maker Merck may
have done so with its $17 bil-
lion acquisition of Sigma-Al-
drich, a U.S. supplier of labo-
ratory testing materials.
Japans Canon may have vi-
olated rules by implementing
its deal with Toshiba Corp.s
medical-systems unit valued at
665.5 billion ($5.9 billion) be-
fore registering the acquisi-
tion with the EU, the regulator
said.
The EUs clearances for all
three deals remain valid, but if
a formal investigation finds
the companies did in fact pro-
vide incorrect or misleading
information, they can be fined
up to 1% of global revenue, the
regulator said. In Canons case,
if the EU finds the company
jumped the gun with its deal,
it could be fined as much as
10% of global revenue.
The EU said GE initially
failed to provide information
on research and development
activities, including the devel-
opment of a specific product.
The regulator said it deemed
that information necessary to
properly assess the future po-
sition of GE and the competi-
tive landscape for wind tur-
Hilton Sees Room to Expand With Midprice Brand
Lower end of market is enormous, but developers must believe that building new hotels will bring good returns
BY CHRIS KIRKHAM
At first glance, the new
hotel chain on track to be
the fastest-growing in the
U.S. resembles a boutique
brand that might be found in
a trendy, urban location.
But Hilton Worldwide
Holdings Inc.s new midprice
brand, Tru, is pricing rooms
at around $100 a night or
less and is largely aimed at
less-flashy locales like sub-
urban highway exits. The
first Tru by Hilton hotel
opened in May in Oklahoma
City, to be followed by more
than 200 locations by the
end of 2019.
Hilton hopes to expand its
customer base by focusing
on a lower end of the market
than the company has typi-
cally operated.
To differentiate itself from
competitors in the same
price range, such as Best
Western or Quality Inn, Tru
will try to hold costs down
by making rooms smaller
and easier to clean, while of-
fering millennial-friendly
lobby amenities such as craft
beer and pool tables.
The market is enormous:
About 30% of nightly de-
mand at U.S. hotel chains is
* *
ple handsets and tablets that
dont include Qualcomm chips,
and to bar sales of those prod-
ucts already in the U.S.
Qualcomm said Apple has
been infringing several of its
patents on wireless technology
in iPhones and iPads generally,
but that it limited the scope of
its request in part to minimize
the economic impact.
Qualcomm said it separately
filed similar patent-infringe-
ment claims Thursday against
Apple in federal district court
in Southern California.
The moves escalate a legal
feud Apple initiated with a fed-
eral lawsuit in January accus-
ing Qualcomm of abusing its
dominance in cellular chips to
thwart competitors and extract
bines. The U.S. company re-
registered its deal in February
to reflect the project in the
pipeline, which was not part
of the initial registration two
weeks earlier, the EU said.
GE said it believed the com-
pany acted in good faith and
that there was no intent to
mislead. When informed of
the ECs concerns, we acted
quickly and openly to resolve
the issue, said GE spokesman
James Healy.
In the deal between Merck
and Sigma-Aldrich, the compa-
nies failed to provide certain
information about an innova-
tion project relevant to labora-
tory chemicals at the heart of
the EUs analysis of the deal.
Had this project been cor-
rectly disclosed to the com-
mission, it would have had to
be included in the remedy
package, the EU said, refer-
ring to a divestment the com-
panies had to make to win ap-
proval for the deal. The
viability of the divested busi-
ness was impaired as a result,
the EU said.
The buyer of that business,
Honeywell International Inc.,
received the relevant technol-
ogy only a year later after
Merck agreed to license it to
them, the EU said.
Both Merck and Canon said
Thursday that they would re-
spond to the EU in due course.
Thursdays announcement
follows the EUs decision in
May to fine Facebook Inc. 110
million ($124 million) in con-
nection with its acquisition of
its WhatsApp messaging unit.
The EU said Facebook inaccu-
rately claimed during the
merger review in 2014 that it
couldnt routinely match Face-
book and WhatsApp user ac-
counts, but two years later it
began combining user data
across the services. Facebook
said the errors in the filings
werent intentional.
The Tru by Hilton in Oklahoma City. Tru offers large lobbies with amenities like pool tables.
for rooms below an average
of $83 a night, according to
STR, a data company that
tracks the hotel industry.
The challenge, however, is
convincing developers that
building new hotels in that
price range will generate suf-
ficient returns.
Most midtier hotels oc-
cupy older properties that
BUSINESS NEWS
high patent royalties.
Apple in its suit says Qual-
comms royaltybecause it is
calculated as a percentage of
the handset pricerewards the
chip maker unfairly when Apple
charges higher prices for capa-
bilities that arent based on
Qualcomm patents.
An Apple spokesman said
Thursday the company stands
by its previous statement that
Qualcomm is seeking payments
on innovations it didnt make.
Apple has launched interna-
tional legal actions and sup-
ported regulatory proceedings
against Qualcomm in multiple
countries, threatening the San
Diego-based companys patent-
licensing business, which in
2016 accounted for roughly
Ancient artifacts Hobby Lobby purchased for a collection appeared to have been stolen from Iraq, federal authorities alleged.
Hobby Lobby to Return Artifacts
BY REBECCA DAVIS OBRIEN
In 2010, the president of
Hobby Lobby spent $1.6 million
on thousands of ancient arti-
facts that he hoped would help
build a collection of antiquities
related to the Bible.
There was one problem: The
items appeared to have been sto-
len from Iraq, federal authorities
alleged, then smuggled into the
U.S. from the United Arab Emir-
ates and Israel, bearing labels
identifying them as ceramic
tiles and Tiles (Sample). ble, to preserve and share with
The Oklahoma City-based
arts-and-crafts retailer settled
the claims with the government
on Wednesday, according to a
civil complaint and settlement
filed by the Brooklyn U.S. attor-
neys office.
Hobby Lobby agreed to sur-
render the artifacts, pay a $3
million fine and adopt new pro-
cedures for buying cultural
property.
In a statement posted on its
website, the privately held
have been converted from
other higher-priced brands.
With Tru, Hilton is aiming
for brand-new properties.
Its the graveyard for old
hotels, said Hilton President
and Chief Executive Chris
Nassetta. The reason hotels
have gotten to that price
point is they were something
different and they deterio-
80% of its pretax profit. counts for as much as 30% of
Qualcomms latest move isnt Qualcomms per-share earnings,
likely to disrupt iPhone sales in according to Macquarie Capital.
the near term because the trade Qualcomm has two main
commission generally takes businesses: selling chips that
about 16 months to reach a con- are used in many smartphones,
clusion, according to Lyle and licensing patents it owns
Vander Schaaf, a former com- on key cellular technology used
mission general counsel now in nearly all smartphones sold
with law firm Brinks Gilson & globally, even those that dont
Lione. If the commission ruled use its chips.
against Apple, the iPhone maker That business model has
could appeal. Still, Qualcomms been increasingly under attack.
complaint represents its stron- In addition to the Apple fight,
gest effort against Apple. Qualcomm is under investiga-
Despite the legal fight, Qual- tion by the U.S. Federal Trade
comm is vying with Intel Corp. Commission for anticompeti-
to supply modem chips for the tive practices, and late last year
next-generation iPhones. Apple was fined by the South Korean
started including Intels chips Fair Trade Commission over
in some units of the iPhone 7 similar claims.
launched last year. Apple ac- Complaints against Qual-
company said its lack of famil- and sold to collectors.
iarity with the complexities of After the U.S. invasion in
the acquisitions process led to 2003, there was widespread
some regrettable mistakes, looting of Iraqi cultural institu-
including relying on dealers tions and archaeological sites.
and shippers who, in hind- Nearly 5,000 cylinder seals
sight, didnt understand the were stolen from the Iraq Mu-
correct way to document and seum in Baghdad, officials esti-
ship these items. mated at the time.
The aim of the company, The company said it didnt
which is owned by an evangeli-
cal Christian family, was to de-
$3M
velop a collection of histori-
cally and religiously important
books and artifacts about the Bi-
chases, the complaint stated.
the public, the statement said. Hobby Lobby agreed to pay this
Our passion for the Bible fine to settle government claims.
continues, President Steve
Green wrote, and we will do
all that we can to support the
efforts to conserve items that intend to buy items from Iraq.
will help illuminate and en- At no time did Hobby
hance our understanding of this Lobby ever purchase items
Great Book. from dealers in Iraq or from
Since the early 1990s, hun- anyone who indicated that they
dreds of thousands of objects acquired items from that coun-
have been looted from archaeo- try, the statement said.
logical sites in Iraq, with many Still, prosecutors noted that
ending up on the black market the transaction was consistent
typical hotel room in the price
range. The overall footprint of
the property is smaller, too,
and will largely be away from
big-city centers, keeping land
costs down. Openings in com-
ing months are scheduled in
places like Farmville, Va., and
Cheyenne, Wyo.
In exchange, Tru hotels
have a lobby that is more
than 80% larger than Hiltons
typical Hampton Inn loca-
BRETT DEERING FOR THE WALL STREET JOURNAL
tion, which is priced slightly
higher than Tru.
The rooms are designed in
a way to make cleaning eas-
ier and faster. Rather than
carpet, floors are covered in
vinyl that can be mopped,
and in-room desks and cof-
fee makers have been ban-
ished, also to cut down on
cleaning times.
We have been laser-fo-
cused on what numbers we
absolutely need to hit, said
rated. Youre sort of putting Alex Jaritz, global head of
lipstick and rouge on a the Tru brand, who previ-
structure thats obsolete. ously worked at Choice Ho-
To make the returns tels International Inc.,
worth the new development which operates brands like
costs, Hilton had to rethink Quality Inn.
the design to get more Other hotel companies are
rooms across a smaller experimenting along the
amount of space. same lines. In recent years
Guest rooms are designed Marriott International Inc.
to be about 20% smaller than a introduced Moxy hotels,
Friday, July 7, 2017 | B3
comm largely have focused on
its licensing practices for a cat-
egory of patents that are gener-
ally acknowledged to be essen-
tial to cellular communications.
Standards organizations re-
quire that holders of such pat-
ents offer licenses widely. Qual-
comms critics claim that the
company evades its obligation
by refusing to license those
patents to rival chip makers.
In the new complaint, Qual-
comm said the six patents at is-
sue cover technologies not in
that essential category and are
related to boosting perfor-
mance while conserving battery
life. It said Apple has used the
technologies without purchas-
ing a license despite Qual-
comms efforts to negotiate one.
U.S. ATTORNEYS OFFICE IN THE EASTERN DISTRICT OF NEW YORK
with methods used by import-
ers to avoid detection and tar-
geting by Customs, including
providing false statements
about the value and origin of
the goods and sending ship-
ments to different addresses.
According to the complaint,
Hobby Lobby began to assem-
ble a collection of cultural arti-
facts, manuscripts and antiqui-
ties around 2009.
Mr. Green and a consultant,
who wasnt identified in the
court filings, approved the pur-
In July 2010, the pair trav-
eled to the U.A.E., where they
met with two Israeli antiqui-
ties dealers and a dealer from
the U.A.E. and examined more
than 5,500 artifacts, according
to prosecutors. The items in-
cluded 1,500 tablets written in
etched with an ancient writing
system known as cuneiform,
500 cuneiform bricks, 13 ex-
tra-large cuneiform tablets
and 500 stone cylinder seals,
according to the complaint.
which have smaller rooms
and more communal space in
the lobby, though it is at a
higher price point than Tru.
Intercontinental Hotels
Group PLC said in June it
would launch a new brand in
this price range.
Best Western Hotels &
Resorts introduced a brand
called Glo in late 2015, just
before Hilton announced Tru,
that will operate in the same
price range. It has a similar
modern design but incorpo-
rates elements such as a lay-
out that allows the bath-
rooms of adjoining rooms to
be beside each other in an
effort to save space.
The difference with Tru is
scale. Best Western has 25
development deals in the
works for Glo locations,
whereas Tru has 425 proper-
ties in various stages of de-
velopment, the biggest pipe-
line for any newly launched
brand since at least 2003,
when STR first started con-
sistently tracking the data.
They are a serious player.
We know we have to up our
game, said Best Western
CEO David Kong. They are
going to be in markets that
weve dominated, so we have
to protect our turf.
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
B4 | Friday, July 7, 2017
CHINA CIRCUIT | By Li Yuan
Highflying Entrepreneur Falls Back to Earth
Entrepre-
neur Jia Yuet-
ing likes to
say that Ap-
ple Inc. is out-
dated, Chinas
big technology companies
are innovation-killing mo-
nopolies and his company,
LeEco Holdings, is the real
industry disrupter.
That swagger served Mr.
Jia in building an empire
that sprawled across seven
industries, from online video
content to smartphones to
electric cars. By having the
ambition to take on Apple,
Tesla Inc. and Netflix Inc. all
at once, Mr. Jia seemed to
embody the boundless prom-
ise of the huge China market.
And investors responded fa-
vorably.
Deal makers like HNA Cap-
ital and Legend Holdings
bought in, as did the city
government of tech hub
Shenzhen, as well as movie
director Zhang Yimou and
other celebrities. British
sports car maker Aston Mar-
tin joined up to develop elec-
tric vehicles. The U.S. state
of Nevada promised $200
million in incentives for Mr.
Jias electric car venture,
Faraday Futures Inc., to
build a $1 billion plant there.
And LeEco unveiled a $2 bil-
lion deal to buy U.S. TV-
maker Vizio Inc.
Now, most of those deals
are dead or struggling and
Mr. Jias dreams are fading
away due to a cash crunch
and worried creditors.
On Thursday he resigned
as chairman of a listed unit
of LeEco, Leshi Internet In-
formation & Technology
Corp., though he will remain
the chairman of the holding
company. That move comes
after a Shanghai court last
weekat the behest of China
Music
Streaming
Service
Cuts Staff
BY ANNE STEELE
Audio-sharing platform
SoundCloud Ltd. will lay off
more than 40% of its staff in a
bid to reach profitability in a
competitive music-steaming
environment.
In a blog post Thursday, its
chief executive and co-founder,
Alex Ljung, said the company
would shed 173 employees and
consolidate staff into its Berlin
headquarters and offices in
New York.
A SoundCloud spokes-
woman said the privately held
companys San Francisco of-
fice will close.
It is also consulting with
employees in London regard-
ing the office there.
Mr. Ljung said the company
more than doubled its revenue
in the past 12 months but
needs to cut costs, increase
advertising and subscription
revenue, and focus on our
unique competitive advantage:
artists and creators.
Were on our path to prof-
itability and in control of
SoundClouds independent fu-
ture, he said.
SoundCloud stakes claim to
one of the biggest music cata-
logs online.
The company currently
reaches about 175 million lis-
teners in more than 190 coun-
tries each month through its
own mobile apps and sites, as
well as through other channels
such as social media.
Founded in 2007, Sound-
Cloud gained most of its trac-
tion as a free site for emerging
artists and DJs to share and
promote their music.
Early last year it began sell-
ing paid subscriptions for a
new tier of service called
SoundCloud Go, which lets us-
ers listen to music offline and
without ads.
It includes access to 125
million tracks, mostly mixes,
mashups and other musical
creations by emerging artists
and DJs for which the site is
known. SoundCloud Go also
has a catalog of roughly 30
million songs that is also of-
fered on other subscription
services such as Spotify and
Apple Music.
Jia Yueting, left, built an empire to take on Apple and other tech titans, but it is beset by overexpansion and financial problems.
Merchants Bank Co.froze
$181 million worth of his as-
sets and $2 billion in shares
over a missed interest pay-
ment.
R
ather than being a
shining star of vision-
ary entrepreneurship,
LeEco is turning into a cau-
tionary tale of the hype sur-
rounding China tech. The les-
son for investors: When it
comes to Chinese tech com-
panies, the rules of econom-
ics still apply.
LeEcos overexpansion and
financial problems were well-
known in investment circles.
Mr. Jia said publicly that his
company was perpetually
Samsung Heirs Trial Turns on Sports Deal
BY EUN-YOUNG JEONG
SEOULSouth Koreas Sam-
sung business empire makes
hundreds of deals each year.
But an obscure $18.6 million
equestrian agreement it signed
two years ago to fund a com-
pany in Germany could upend
a decadeslong leadership suc-
cession process at the con-
glomerate.
Samsung heir Lee Jae-yong
was arrested in February, and
is on trial over his alleged role
in a corruption scandal that led
to former South Korean Presi-
dent Park Geun-hyes impeach-
ment. Three months into the
trial, the prosecutors criminal
case is riding on what they de-
scribe as a form of horse-trad-
ing: an effort by Samsung to
channel money for political fa-
vors by funding the equestrian
aspirations of the daughter of a
close friend of the countrys
former president.
The prosecutions case cen-
ters on the funding of Core
Sports International GmbH, a
small German sports-consult-
ing company prosecutors say
was controlled by Ms. Parks
close friend, Choi Soon-sil.
Core Sports had just one cli-
ent: Ms. Chois daughter,
Chung Yoo-ra, an equestrian
athlete.
Samsungs Mr. Lee is accused
of having ordered his company
to fund Core Sports. In return,
prosecutors allege Ms. Choi col-
luded with Ms. Park to have the
then-president direct the coun-
trys pension service to vote in
favor of a 2015 merger of two
Samsung affiliates that was
seen as a critical step in consol-
idating Mr. Lees grip on Sam-
sung Electronics Co. Ms. Park
and Mr. Lee have denied wrong-
doing.
Prosecutors say they believe
they have enough evidence to
show Samsungs equestrian
sponsorship constitutes brib-
ery. The equestrian support
was for one person, Chung
Yoo-ra, said special prosecu-
tor Park Young-soo, at Aprils
opening hearing.
Mr. Lees defense attorneys
have acknowledged Samsungs
sponsorship of the German
company, but denied the funds
were intended to benefit a spe-
cific person.
Samsungs business activi-
ties were not a part of Mr.
Lees succession plan, but reg-
ular business activities, said
Song Wu-cheol, one of Mr.
Lees lawyers at a hearing,
TECHNOLOGY
short of cash. Some investors
marveled at his ability to
spin attractive narratives
that boosted the stock prices
and private funding valua-
tions of his ventures.
Zhang Yiming, managing
director of private-equity
firm Commando Capital in
Beijing, has likened Mr. Jias
funding methods to wire-
walking between cliffs.
Many people in the capi-
tal market view him as a
fraud because his new busi-
nesses are burning a lot of
cash, but he just keeps tell-
ing new stories. As long as
10 out of 100 people believe
him, he will have investors,
Mr. Zhang told me in an in-
Chung Yoo-ra in equestrian competition in South Korea in 2014.
Components Drive
Record Earnings
SEOULSamsung Elec-
tronics Co., riding hot demand
for its components, is forecast-
ing its second-quarter operat-
ing profit will easily be the
companys highest ever, a sign
the South Korean technology
giants business is thriving
even after a year of political
and product stumbles.
Samsung on Friday said it
expects second-quarter operat-
ing profit of about 14 trillion
South Korean won ($12.1 bil-
lion), a 72% increase from 8.14
trillion won a year earlier. Sam-
sung estimates revenue will be
60 trillion won from April to
June, a sharp rise from the
prior years second quarter of
50.94 trillion won.
Samsungs previous all-time
operating-profit record came in
the third quarter of 2013 when
adding that Samsung spon-
sored the equestrian training
at Ms. Parks request with no
strings attached.
Samsung did not pay any
bribes and did not make any
improper requests or seek fa-
vors. We believe that the court
proceedings will reveal the
truth, said a Samsung spokes-
woman, reiterating an earlier
statement.
Mr. Lee has yet to testify in
court but at a parliamentary
* *** THE WALL STREET JOURNAL.
WSJ.com/Tech
sannas about these new ven-
tures. Among the recent dar-
lings: platforms to share
bikes, umbrellas and battery
packs to recharge mobile
phones.
Started as a video site in
2004, LeEco wasnt well-
known until it became the
most valuable internet stock
in Chinas A-share market
during the bull run of 2015.
In explaining his vision,
Mr. Jia frequently talked
about building an ecosystem
for consumers that delivered
contentfrom film and on-
line entertainment to
sportsand hardware such
as smartphones, TVs or cars.
The result, he explained,
would be a chemical reac-
tion among the units, pro-
pelling each others busi-
nesses.
Those synergies failed to
materialize and the rapid ex-
pansion led to the cash
JASON LEE/REUTERS
shortage. How much debt
LeEco has piled up isnt pub-
licly known. Its listed video
business is the only profit-
able unit, while its smart TV
is its sole product that leads
in market share.
terview last year. technical liabilities for itself. The 15 billion yuan ($2.2
Mr. Zhang said he holds Vizio didnt respond to re- billion) that a white knight
the same view now but quests for comment. Ne- pumped into LeEco in Janu-
doesnt want to say more for vadas state treasurers office ary wasnt enough, though
fear of being seen as trash- didnt respond to a request the sum was plowed into re-
ing Mr. Jia at a difficult time. for comment, though it has paying loans.
In a letter posted on his said no state bonds will be The fall of LeEco does
official social media account issued until Faraday proves not come as a surprise.
Thursday, Mr. Jia noted that it can finance the project. When you use hype to
he is still LeEco Holdings stretch reality, reality usually
C
biggest shareholder and he hinas tech boom has wins, says Jay Zhao, a part-
promised to repay loans and been looking like a ner at San Francisco-based
overdue payments if credi- bubble for some time, Walden Venture Capital,
tors give the company more with vast pools of invest- which is considering invest-
time. ment flooding into new ven- ing in Chinese startups and
Neither LeEco nor Mr. Jia tures since the old manufac- taking on Chinese investors.
responded to requests for ture-and-export economy Its a painful lesson for all
comment on Thursday. started slowing. that investors should be very
Aston Martin says its Tech blogs, many of them cautious chasing shiny ob-
partnership with LeEco backed by venture capital jects. No matter who brings
didnt carry any financial or funds, have churned out ho- those to you.
ing. Ms. Chois lawyer rejected
the bribery charge in another
clined to comment citing at-
torney-client privilege.
trial involving Ms. Choi and
Ms. Park. Ms. Chois lawyers
didnt respond to several re-
Park Won-oh, a former offi-
cial at the Korea Equestrian
Federation who was con-
quests for comment.
Mr. Lee, 49, has been absent
from his role as the vice chair-
tracted by Samsung to advise
the company on equestrian
matters, said the company had
man of Samsung Electronics only one employee with rele-
since February, when he was vant equestrian experience.
arrested. Under South Korean But Core Sports paid monthly
law, he can be detained until salaries to Ms. Chungs hus-
the end of August without a band and a friend who
verdict, which can be extended. watched her pets and ran
If convicted, he can face at small household errands, testi-
least five years in prison. fied another witness who
The prosecutors case briefly managed the companys
LEE SANG-HAK/ASSOCIATED PRESS
stretches back to August 2015, accounting.
shortly after South Koreas Na- In his testimony, Mr. Park,
tional Pension Servicethen the 67-year-old former eques-
the biggest shareholder in trian official and no relation to
Samsung C&T Corp., one of the Ms. Park, described how he
Samsung affiliates in the 2015 went over the contract condi-
mergercast a decisive vote in tions with Ms. Choi and then
favor of the merger, ensuring relayed her demands back to
its approval. That deal was op- Samsung.
posed by many foreign inves-
tors and proxy advisory firms
Glass Lewis & Co. and Institu-
At issue is whether
it posted 10.2 trillion won. Final tional Shareholder Services
earnings results will be re- Inc., which regarded it as det- Samsungs equestrian
leased later this month.
Samsung, the worlds larg-
rimental to Samsung C&T
shareholders. Last month, the
sponsorship
est smartphone maker, derives court sentenced two former constitutes bribery.
the lions share of its profit officials tied to NPS in connec-
from semiconductors and dis- tion with the merger. The two
play panels, a shift from early officials have appealed the ver-
last year when handheld de- dict to a higher court. Mr. Park testified at a court
vices raked in most of the A spokesman at NPS de- hearing that Samsung ap-
companys earnings. clined to comment for this ar- peared to let Choi Soon-sil do
Samsung has succeeded ticle. what she wantedalmost
through consistent aggressive Weeks later, on Aug. 26, 100%.
investments around the globe. Samsung Electronics officials Mr. Park said he was per-
For years, it has pumped tens met with Core Sports employ- plexed at the time by why a
of billions of dollars into manu- ees at Frankfurts Interconti- company as large and powerful
facturing the core components nental Hotel to sign a contract as Samsung would be so pli-
that its technology rivals need promising the consulting com- able to Ms. Chois demands,
to make their own devices, pany $18.6 million over a even when it was doubtful
helping Samsung emerge as a three-year period to train that Core Sports had the ca-
front-runner in semiconductors South Korean athletes, accord- pacity to train Ms. Chung at
and display panels. ing to witnesses questioned the time of the agreement.
Analysts predict that sales during the trial. Ms. Choi was Mr. Lees defense lawyers
from Samsungs semiconductor in the lobby of the hotel dur- and some witnesses said that
business will help Samsung ing the signing, witnesses said. Samsung intended for the
surpass Intel Corp. this year as Under the agreement, Core dressage training to support
the worlds largest chip maker. Sports would use the funds to more than one athlete, but was
Timothy W. Martin buy 12 horses and support six prevented from doing so by
and Eun-Young Jeong athletes, according to a copy of Ms. Choi.
the contract reviewed by The Last week, Ms. Choi de-
Wall Street Journal. layed taking the witness stand
hearing in December, he de- But Core Sports was ill- at Mr. Lees trial, citing health
nied asking the government to equipped to carry out condi- issues. Ms. Chung said she had
support the merger. tions of the deal at the time. no knowledge of what went on
Prosecutors have so far put The company was registered between her mother and Ms.
forward 10 witnesses, thou- only a day before its deal with Park. My mother said that I
sands of pages of emails, text Samsung, according to a Ger- would be one of the athletes
messages and phone records man commercial registration out of six funded by Samsung
to detail how Samsungs document presented by prose- Electronics, Ms. Chung told
equestrian sponsorship was al- cutors in court. reporters in May.
legedly a coverup for channel- Park Sung-kwan, a Ger- Prosecutors are expected to
ing funds to Ms. Choi and Ms. many-based lawyer and one of complete witness examinations
Chung for over 10 months. Core Sports co-signees for the in the coming weeks, after
Both Ms. Choi and Ms. contract between the German which defense lawyers can call
Chung have denied wrongdo- company and Samsung, de- witnesses to the stand.
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
THE WALL STREET JOURNAL.
Istanbul: The next
global financial center
As Turkey continues to ascend in global finance, the
transformation of Istanbul, the economic capital of the
country, into a leading financial center is well underway.
Istanbul the worlds sev-
enth-largest city is already
an investment hotspot for
domestic and international
investors from many sectors
has a lively real estate mar-
ket and hosts the countrys
sole stock exchange Bor-
sa Istanbul It is also home
to major domestic and inter-
national banks and financial
institutions and the location
of the headquarters of most
of the countrys blue-chip
companies and influential
enterprises In other words
there is a lot of money circu-
lating in the cityand mon-
ey is best utilized when put
to work Making Istanbul a
new financial center for the
region will certainly have a
substantial impact on the
global financial market with
plenty of economic oppor-
tunities at the crossroads
of Europe and the Middle
East North Africa and Cen-
tral Asia Turkeys govern-
ment is well aware that the
financial industry plays a sig-
nificant role in the citys and
countrys economic growth
and employment and af-
fects state revenues as in
other global financial hubs
such as London New York
Hong Kong Singapore To-
kyo Shanghai Dubai Frank-
furt or Zurich
Over the past decade
Turkeys government has de-
veloped a roadmap for the
Istanbul International Finan-
cial Center initiative (con-
tained within Turkeys 10th
Development Plan 2014
2018) which aims to make
Istanbul a regional then a
global financial center and
includes construction of a
170-acre financial complex
on the citys Asian side Dur-
ing this time Istanbul is up-
grading its financial infra-
structure and regulations
and relocating banks and fi-
nancial market supervisory
authorities from Ankara to
Istanbul The city is also ex-
pected to benefit from Brex-
it as several financial ser-
Paid by the Turkish Exports Assembly The Wall Street Journal news organization was not involved in the creation of this content
vices providers are likely to
move away from London
Especially for Islamic finance
institutions in the UK Is-
tanbuls transformation into
a financial hub comes at the
right time
While some departments
of the project are expected
to begin operating as ear-
ly as 2019 the Istanbul In-
ternational Financial Center
will officially and completely
launch by 2023 the 100th
anniversary of the Declara-
tion of the Turkish Repub-
lic Turkey is also expected
to be among the 10 larg-
est economies globally (it is
currently 17th as per nom-
inal GDP figures issued by
the International Monetary
Fund) by then Thus the in-
auguration of the financial
center will also symbolize
Turkeys growing econom-
ic power and global impact
Construction of the Istan-
bul International Financial
OVERALL
INVESTMENT IN
THE ISTANBUL
INTERNATIONAL
FINANCIAL CENTER
IS ABOUT $2.6
BILLION.
PAID ADVERTISEMENT
Center located in the mod-
ern suburban business dis-
trict of Atasehir which is
well connected to Istanbuls
city center began in 2015
The center will have offices
and conference areas pre-
mium hotels and retail facili-
ties and will house Turkeys
capital market board and
the countrys banking regu-
lation and supervision agen-
cy It will also have a subway
station residences parks
administrative buildings a
health center a police sta-
tion a fire department ed-
ucation centers mosques
and a nursery Numerous
corporations and other en-
tities in Istanbul including
the central bank and sever-
al other key financial institu-
tions are expected to move
their headquarters to the
new financial center Up to
50000 people will be em-
ployed in the center not
only in the financial servic-
es industry but also in other
professional occupations
lawyers consultants advi-
sors and arbitratorsas well
as in marketing and informa-
tion technology Overall in-
vestment in the Istanbul In-
ternational Financial Center
is about $26 billion Istanbul
offers many business ben-
efits including a qualified
workforce groomed in the
countrys best educational
institutions advanced capi-
tal market laws and a regu-
latory environment harmo-
nized with European Union
requirements Turkey also
plans to reduce taxation on
financial market transactions
to a more competitive level
than most other countries
in order to attract financial
market players to the city
The Istanbul finance
center will be an assertive
project for the future as it
offers the same opportu-
nities as other competitive
financial markets and can
even surpass them says
Turkeys Finance Minister
Naci Abal
TURKEYS STRATEGIC
IMPORTANCE
FOR THE USA
Turkey and the United States of America have been partners and
allies for a long time. The relationship goes back to 1831, when the
U.S. and the Ottoman Empire established diplomatic relations.
In 1927, a few years after the Turkish Republic was founded, the
young country and the U.S. again formed diplomatic relations,
which have continued to present day.
Turkey plays a strategically important
role for the United States as a link be-
tween the East and the West In terms
of military strategy Turkey has been a
NATO ally since 1952 so the countries
share military interests Turkey is situ-
ated between Europe and the Middle
East as well as Russia That gives the
United States a centrally located ally
who has provided the US with access
to military bases In terms of the strate-
gic role of economics Turkey has a free
market economy like other Western
countries That steadily growing econo-
my makes it an attractive ally with eco-
nomic strength The OECD expects that
Turkeys GDP will grow 34% in 2017
and 35% in 2018
Collaboration
US scientists are collaborating with
their Turkish counterparts in a variety
of research on improving health edu-
cation and energy efficiency through
the US-Turkey Science and Technolo-
gy Agreement This is a public-private
partnership to support technology-
based entrepreneurship and innovation
to bring technologies to underserved
populations The US sees Turkey as a
major energy center Its location again
plays a role as Turkey is a major transit
hub for fuel and energy product trans-
portation to the surrounding countries
And its also due to the privatization
of Turkeys energy production sector
along with the countrys emphasis on
developing and using renewable energy
Trade
In recent decades trade between
the US and Turkey has increased sub-
stantially In 2016 more than $17 bil-
lion in goods passed between the coun-
tries up from the $35 billion in 1992
However everyone agrees that theres
untapped potential for much more
trade The US exports iron steel air-
craft defense goods machinery agri-
cultural goods oil yarn fabric and cot-
ton to Turkey In return Turkey exports
travertine marble vehicles other
types of machinery vegetable oil and
fruits/vegetables The two countries
have relied on the Framework for Stra-
tegic Economic and Commercial Coop-
eration (FSECC) to guide economic re-
lations since 2009
Friday, July 7, 2017 | B5
Investment
Turkeys second largest amount of
foreign direct investments is from US
sources and the current US govern-
ment wants to increase those invest-
ments The top US direct investments
in the banking and manufacturing in-
dustries During a spring 2017 visit to
Ankara US Secretary of State Tiller-
son declared he came to deepen our
countries trade and investment ties
The culture of entrepreneurship is
rising in Turkey and the larger middle
class and urbanization is attractive to
investors The growth figures reflect
the role of trade in Turkeys economy
In 1975 the proportion of GDP related
to trade was only 156% By 2015 that
had risen to 588% Turkeys export-
oriented manufacturing sector was a
driving factor
Turkey tripled its GDP between
2002 and 2015 with an average annu-
al growth of 47% Its the 17th largest
economy in the world and has a young
educated workforce Its considered to
have a business-friendly environment
with highly competitive investment con-
ditions Infrastructure is well-developed
and the country is centrally situated be-
tween various world markets Turkey
has belonged to the EUs Customs Un-
ion since 1996 and participates in free
trade agreements with 27 countries
In addition to trading with other coun-
tries Turkey has a large domestic mar-
ket for consumption and sales
Global partner
Turkey has been a solid US partner
in combatting combat terrorism spe-
cifically to defeat ISIS The country al-
lows the US military to operate from
Turkish military bases Turkey is work-
ing to build stability in the region in oth-
er ways as well As a country that went
through political reforms in the early
2000s some Arab countries are look-
ing to Turkey as a role model for their
own transition Theres no doubt that
the theres plenty of room for addition-
al potential for commercial collabora-
tion and investment opportunities be-
tween Turkey and the US Due to a
number of factors Turkey is one of the
most important investment centers of
the world and is ripe for additional US
attention and cooperation
B6 | Friday, July 7, 2017 * *** THE WALL STREET JOURNAL.

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BY MARIA ARMENTAL Broadway musical Paramour. Cirque du Soleil tweeted
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   # Private-equity firm TPG Thursday in announcing the
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ater company Blue Man Group, Cirque du Soleil for $1.5 bil- what is now Cirque du Soleil,
as the Montreal-based organi- lion in 2015. a company that now has
BANKRUPTCIES
zation continues to expand its Developed in 1991 on New nearly 4,000 employees, in-
range of entertainment offer- Yorks Lower East Side by cluding 1,300 performers.
ings beyond highflying aerial three friends, Blue Man Group This year Cirque du Soleil

  

  
 
     

stunts. and its three bald, blue-faced is simultaneously presenting

  
 
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resident productions in the around the world. With no Lalibert, developed the name


        
   

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 two touring productions. Fi- Group productions combine own words, The sun symbol-
                 
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He was accused of working to
help implement software de- A Lidl in Virginia Beach, one of 20 opening in the U.S. this summer.
signed to cheat U.S. emissions
PUBLIC NOTICES tests in thousands of Audi mick Construction Company Inc. similar to its own.
clean diesel vehicles. He was for $175 million, expanding its Kroger said Lidls Preferred Se-
charged with conspiring to de- reach in the Western U.S. in an- lection brand infringes on the Pri-
fraud the U.S., violating the ticipation of hundreds of billions vate Selection label the Cincinnati-


 


       
      !  Clean Air Act, and wire fraud. of dollars in infrastructure spend- based grocer uses on thousands of
 "#$%   ! ! "#$% "&  #!$% Mr. Pamio, described by the ing expected in coming years. products that brought in nearly $2

  
    


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" #& ' (") * +,(") #!-. /&  0   Justice Department as a 60-year- Oakland, Calif.-based Shim- billion in sales last year.
 $  11)! $ '& +, 11-. $  ! "2 +. $&   3 old Italian citizen, couldnt be lo- mick has taken part in a number This mark will confuse custom-
11 $ !1 "   45  0  6 7  5 8 +. $& 
 3 11 $   !1  &1 ) 5!  8 cated for comment. A Volks- of projects in the Western U.S., ers, Kroger wrote in a complaint
+. $&   3 11 $ !1 " 0  1   !/" $ 
4 9  &8 +. $&  "  "! "   (") #! wagen spokeswoman said the including improvements and re- filed last Friday in U.S. District
0:   /1   $  !& "  " !  "&  " !&8 +. company continues to cooperate pairs on the Golden Gate Bridge. Court in Virginia. The company said
$&  " " )" ") $   0     " "  "
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with investigations by the U.S. Los Angeles-based Aecom de- the strategy undermined Lidls
$ 453 ! < " &8 +. &   3 0!1 $   $
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#3 ! < " &8 +. &   3 < $  Department of Justice into the signs, builds and operates infra- promise to offer U.S. shoppers a
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 (") #!8 +<. &  "0 $  13    1 "   not be appropriate to comment 150 countries. Lidl is opening 20 stores in
(") #!8 " +<. =&     !  "   )  11 !&
)  11"    "& 0 !" $   $  !/"&  " on any ongoing investigations or Erica E. Phillips the U.S. this summer, with 10
   0 1!"  1&    !/"&   0 "0" " 
!/"&   1" to discuss personnel matters. now operating and four more to

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"   (") #! Aruna Viswanatha GROCERS begin running next week.
0!&2 +.  ""! $ #& ?
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0:8 +.  ""! $ 10 
 $ !!      and Mike Spector A Kroger spokeswoman said
 ) <     & $  $ &  &  (") #!  ! AECOM Kroger Sues Lidl the company is extremely
"   " 1 " <0 $  ) <"   " 1   $ 
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Expands Reach Kroger Co. is suing a new ri- on the case but said Lidls U.S.
$ #1 " 4 ! 5  A/" ?
 
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 # 4< BB 0 2017 Dow Jones & Company, Inc. All Rights Reserved.
val in the U.S. supermarket sec- offerings have been positively
1!&  $C!&1  0 !!&  ?
? Infrastructure and engineering tor, accusing German discounter accepted by our customers.
firm Aecom is acquiring Shim- Lidl of using a private label too Heather Haddon
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
THE WALL STREET JOURNAL. Friday, July 7, 2017 | B7

MARKETS DIGEST
EQUITIES

Dow Jones Industrial Average S&P 500 Index Nasdaq Composite Index
Last Year ago Last Year ago Last Year ago
21320.04 t 158.13, or 0.74% Trailing P/E ratio 20.73 19.02 2409.75 t 22.79, or 0.94% Trailing P/E ratio 23.87 23.74 6089.46 t 61.39, or 1.00% Trailing P/E ratio * 25.69 22.62
High, low, open and close for each P/E estimate * 18.18 17.08 High, low, open and close for each P/E estimate * 18.72 17.82 High, low, open and close for each P/E estimate * 21.01 18.88
trading day of the past three months. Dividend yield 2.33 2.58 trading day of the past three months. Dividend yield 1.96 2.18 trading day of the past three months. Dividend yield 1.13 1.30
All-time high 21528.99, 06/19/17 All-time high: 2453.46, 06/19/17 All-time high: 6321.76, 06/08/17

Current divisor 0.14602128057775

21500 2450 6300

21200 2420 6180

20900 2390 6060

Session high
20600 2360 5940
DOWN UP
t

Session open Close

65-day moving average 65-day moving average
Close Open 20300 2330 5820
t

65-day moving average

Session low
20000 2300 5700

Bars measure the point change from session's open

19700 2270 5580
Apr. May June July Apr. May June July Apr. May June July
Weekly P/E data based on as-reported earnings from Birinyi Associates Inc.

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

Latest 52-Week % chg Most-active and biggest movers among NYSE, NYSE Arca, NYSE MKT Volume, Advancers, Decliners
High Low Close Net chg % chg High Low % chg YTD 3-yr. ann. and Nasdaq issues from 4 p.m. to 6:30 p.m. ET as reported by electronic NYSE NYSE MKT
Dow Jones trading services, securities dealers and regional exchanges. Minimum Total volume* 876,583,837 10,324,417
Industrial Average 21433.10 21305.38 21320.04 -158.13 -0.74 21528.99 17888.28 18.8 7.9 7.7 share price of $2 and minimum after-hours volume of 5,000 shares. Adv. volume* 117,783,928 3,188,485
Transportation Avg 9638.02 9560.87 9576.16 -69.75 -0.72 9645.91 7557.62 26.7 5.9 4.9 Most-active issues in late trading Decl. volume* 748,118,180 6,600,384
Utility Average 701.43 697.76 700.44 -0.50 -0.07 737.51 625.44 -2.2 6.2 8.1 Volume After Hours Issues traded 3,090 337
Company Symbol (000) Last Net chg % chg High Low Advances 577 94
Total Stock Market 25122.15 24936.52 24958.26 -253.44 -1.01 25399.65 21514.15 15.5 7.2 6.2
iShares MSCI Japan ETF EWJ 14,245.5 53.01 unch. 53.27 52.96 Declines 2,420 218
Barron's 400 645.26 639.97 640.78 -7.77 -1.20 650.48 519.88 23.3 6.5 5.5
SPDR S&P 500 SPY 7,232.3 240.75 0.20 0.08 242.84 240.55 Unchanged 93 25
Nasdaq Stock Market Weyerhaeuser WY 6,231.8 32.06 unch. 32.50 32.05 New highs 33
Nasdaq Composite 6127.98 6081.96 6089.46 -61.39 -1.00 6321.76 4876.81 24.9 13.1 10.7 PulteGroup PHM 4,962.9 24.40 -0.01 -0.04 24.50 24.40 New lows 49 3
5628.84 5579.64 Closing tick 328 21
Nasdaq 100 5597.90 -50.91 -0.90 5885.30 4459.58 25.5 15.1 12.6 iShares Russell 2000 ETF IWM 3,536.8 139.09 -0.05 -0.04 140.97 138.87
Closing Arms 1.53 0.89
Rice Energy RICE 3,292.6 25.40 0.13 0.50 25.47 25.27
Standard & Poor's Block trades* 6,589 118
-0.94
Oneok Inc OKE 2,817.8 52.60 unch. 52.79 52.57
500 Index 2424.28 2407.70 2409.75 -22.79 2453.46 2085.18 14.9 7.6 6.7 Nasdaq NYSE Arca
iShares MSCI Emg Markets EEM 2,781.2 41.00 -0.05 -0.12 41.06 40.94
MidCap 400 1747.11 1728.99 1730.75 -21.19 -1.21 1769.34 1476.68 16.0 4.2 6.2 Total volume*1,967,897,639 314,016,471
SmallCap 600 852.90 843.62 845.07 -12.18 -1.42 866.07 703.64 19.8 0.8 6.9 Percentage gainers Adv. volume* 346,626,056 78,602,243
Decl. volume*1,570,434,300 234,480,116
Other Indexes Synchronoss Technologies SNCR 22.4 16.81 0.95 5.99 17.37 15.86
Issues traded 3,016 1,341
Russell 2000 1418.86 1398.83 1400.81 -19.33 -1.36 1426.68 1149.76 21.8 3.2 5.1 iShares MSCI EAFE SC SCZ 18.6 60.00 2.69 4.69 60.00 57.31
Advances 643 223
NYSE Composite 11771.18 11694.08 11702.43 -107.06 -0.91 11835.72 10289.35 12.4 5.8 1.8 SolarEdge Technologies SEDG 9.2 20.25 0.70 3.58 21.00 19.55 Declines 2,192 1,093
Value Line 522.83 515.67 516.20 -6.63 -1.27 529.13 455.65 12.9 2.0 0.3 Eldorado Gold EGO 6.3 2.65 0.09 3.52 2.65 2.52 Unchanged 181 25
NYSE Arca Biotech 3933.37 3859.43 3871.10 -83.46 -2.11 4016.86 2834.14 23.2 25.9 10.7
Conatus Pharmaceuticals CNAT 55.0 6.39 0.21 3.40 6.59 6.18 New highs 41 12
New lows 40 8
NYSE Arca Pharma 534.76 529.96 530.41 -7.16 -1.33 554.66 463.78 -0.7 10.1 -0.1 ...And losers
Closing tick 500 122
KBW Bank 97.85 96.51 96.58 -0.82 -0.85 99.33 63.27 52.7 5.2 10.1 Cherokee CHKE 190.5 6.05 -1.70 -21.94 7.70 5.95 Closing Arms 1.33 0.52
PHLX Gold/Silver 79.82 78.90 78.98 -0.88 -1.11 112.86 73.03 -23.9 0.2 -8.0 Advaxis Inc. ADXS 7.3 6.20 -0.50 -7.46 6.70 5.65 Block trades* 8,975 1,877
PHLX Oil Service 132.40 127.43 127.76 -3.10 -2.37 192.66 127.17 -21.9 -30.5 -25.6 Ocular Therapeutix OCUL 192.7 8.90 -0.60 -6.32 9.55 8.70 * Primary market NYSE, NYSE MKT NYSE Arca only.
PHLX Semiconductor 1045.88 1027.14 1037.05 -4.73 -0.45 1138.25 681.82 52.1 14.4 16.8 Canadian Natl Railway CNI 56.1 77.31 -4.08 -5.01 81.39 77.31 (TRIN) A comparison of the number of advancing and declining
13.05 11.18 1.47 22.51 9.75 -15.0 -10.7 issues with the volume of shares rising and falling. An
CBOE Volatility 12.54 13.28 6.7 McDermott International MDR 361.5 7.01 -0.22 -3.04 7.27 7.00 Arms of less than 1 indicates buying demand; above 1

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

International Stock Indexes Percentage Gainers... Percentage Losers

Latest YTD
Region/Country Index Close Net chg % chg % chg Latest Session 52-Week Latest Session 52-Week
Company Symbol Close Net chg % chg High Low % chg Company Symbol Close Net chg % chg High Low % chg
World The Global Dow 2771.63 11.47 0.41 9.5 Verastem VSTM 3.45 1.02 41.98 3.85 1.05 167.4 Egalet Corp. EGLT 1.63 -0.91 -35.83 10.00 1.54 -69.1
The Global Dow Euro 2288.16 24.99 1.08 1.2 HSN Inc HSNI 39.70 8.40 26.84 54.03 30.75 -20.2 Tahoe Resources TAHO 5.56 -2.74 -33.01 17.01 5.12 -64.5
DJ Global Index 358.20 1.97 0.55 9.9 BeiGene ADR BGNE 66.28 14.01 26.80 68.67 24.53 130.1 JMP Group JMP 5.46 -1.75 -24.27 7.70 5.19 -0.7
World DJ Global ex U.S. 240.52 0.23 0.10 12.4 root9B Holdings RTNB 11.99 2.48 26.08 17.55 3.94 -25.3 Precipio PRPO 15.80 -4.30 -21.39 28.16 4.00 -87.5
Americas DJ Americas 579.04 5.36 0.92 7.2 SITO Mobile SITO 4.96 0.78 18.66 6.08 1.71 10.2 Celsion CLSN 1.92 -0.50 -20.66 19.60 1.90 -89.5
Brazil Sao Paulo Bovespa 62470.33 683.84 1.08 3.7 Centrais Elet Brasil ADR EBR 4.74 0.60 14.49 7.70 3.49 20.0 TherapeuticsMD TXMD 4.60 -0.77 -14.34 8.50 3.50 -44.8
Canada S&P/TSX Comp 15078.00 75.12 0.50 1.4 ObsEva OBSV 8.05 0.90 12.56 14.70 5.00 ... L Brands LB 46.49 -7.62 -14.08 79.67 43.04 -31.1
Mexico IPC All-Share 50015.67 285.14 0.57 9.6 Cherokee CHKE 7.75 0.85 12.32 11.98 6.55 -29.2 Fred's FRED 6.40 -0.98 -13.23 21.77 6.37 -57.4
Chile Santiago IPSA 3671.40 12.57 0.34 13.9 MEI Pharma MEIP 2.83 0.31 12.30 2.92 1.32 100.7 Yum China Holdings YUMC 34.95 -5.18 -12.91 42.12 23.79 ...
Corium International CORI 8.90 0.95 11.95 9.10 2.67 127.0 Myomo MYO 9.65 -1.35 -12.27 23.20 6.77 ...
Europe Stoxx Europe 600 380.43 2.56 0.67 5.3
Euro zone Euro Stoxx 375.30 1.67 0.44 7.1 Wilhelmina International WHLM 7.99 0.76 10.52 14.12 5.80 17.2 MYOS RENS Technology MYOS 2.08 -0.29 -12.23 6.98 1.02 7.2
Belgium Bel-20 3822.94 16.03 0.42 6.0 Albireo Pharma ALBO 24.50 2.23 10.01 37.69 8.55 157.1 Hornbeck Offshore HOS 2.48 -0.34 -12.06 9.62 1.51 -68.8
France CAC 40 5152.40 27.70 0.53 6.0 VS 2x VIX Short Term TVIX 23.78 2.16 9.99 510.00 19.38 -95.0 NantKwest NK 6.98 -0.94 -11.87 9.60 2.71 5.4
Germany DAX 12381.25 72.43 0.58 7.8 ProSharesUltVIXST UVXY 10.95 0.99 9.94 226.75 8.91 -94.7 Destination XL Group DXLG 2.00 -0.25 -11.11 5.57 1.95 -60.2
1428.36 0.34 2.9 SORL Auto Parts SORL 7.81 0.68 9.54 9.74 1.68 359.4 Highpower International HPJ 3.25 -0.40 -10.96 6.00 1.78 79.6
Israel Tel Aviv 4.83
Italy FTSE MIB 21084.19 144.80 0.69 9.6
Netherlands AEX 509.94 1.41 0.28 5.5 Most Active Stocks Volume Movers Ranked by change from 65-day average*
Spain IBEX 35 10498.40 25.20 0.24 12.3
Volume % chg from Latest Session 52-Week Volume % chg from Latest Session 52-Week
Sweden SX All Share 579.61 3.34 0.57 8.4 Company Symbol (000) 65-day avg Close % chg High Low Company Symbol (000) 65-day avg Close % chg High Low
Switzerland Swiss Market 8886.95 67.15 0.75 8.1
iPath S&P 500 VIX ST Fut VXX 101,329 59.5 13.57 5.11 54.36 12.19 Franklin LibertyQ EM FLQE 2,250 12092 29.86 -0.15 31.32 25.83
U.K. FTSE 100 7337.28 30.32 0.41 2.7
Finl Select Sector SPDR XLF 97,081 28.9 24.88 -0.76 25.30 18.17 Aberdeen Indonesia Fund IF 931 6918 7.48 0.40 7.78 5.97
Asia-Pacific DJ Asia-Pacific TSM 1616.90 2.70 0.17 13.6 Advanced Micro Devices AMD 88,270 14.6 13.02 -1.29 15.55 4.82 PwrShs Dyn Hlthcr Sector PTH 342 2719 61.63 -1.47 63.38 42.72
Australia S&P/ASX 200 5758.80 4.50 0.08 1.6 Bank of America BAC 83,125 0.7 24.71 -0.84 25.80 12.84 BeiGene ADR BGNE 2,472 2394 66.28 26.80 68.67 24.53
China Shanghai Composite 3212.44 5.31 0.17 3.5 Delcath Systems DCTH 82,152 10.0 0.17 -11.52 6.49 0.02 HSN Inc HSNI 10,491 2310 39.70 26.84 54.03 30.75
Hong Kong Hang Seng 25465.22 56.75 0.22 15.7 General Electric GE 75,789 110.4 26.31 -3.80 33.00 26.10 FTSE RAFI As Pac exJpn PAF 96 1707 54.28 -1.02 56.11 44.67
India S&P BSE Sensex 31369.34 123.78 0.40 17.8 Frontier Communications FTR 63,522 70.4 1.10 -5.17 5.22 1.08 JMP Group JMP 613 1377 5.46 -24.27 7.70 5.19
Japan Nikkei Stock Avg 19994.06 87.57 0.44 4.6 ProSharesUltVIXST UVXY 59,009 76.6 10.95 9.94 226.75 8.91 SPDR S&P Emg Latin Amer GML 72 1243 48.95 -0.31 53.68 42.00
Singapore Straits Times 3226.34 22.37 0.69 12.0 SPDR S&P 500 SPY 58,838 -18.8 240.55 -0.91 245.01 208.38 SPDR Bloomberg Mtg Bkd BdMBG 430 1066 26.12 0.00 27.27 25.30
South Korea Kospi 2387.81 0.54 0.02 17.8 Rite Aid RAD 56,297 86.9 2.36 -4.84 8.77 2.33 PIMCO California Mun III PZC 550 1027 10.94 -4.95 13.11 10.67
Taiwan Weighted 10368.20 36.59 0.35 12.0 * Volumes of 100,000 shares or more are rounded to the nearest thousand * Common stocks priced at $5 a share or more with an average volume over 65 trading days of at least
Sources: SIX Financial Information; WSJ Market Data Group 5,000 shares =Has traded fewer than 65 days

CREDIT MARKETS & CURRENCIES Currencies

U.S.-dollar foreign-exchange rates in late New York trading
Consumer Rates and Returns to Investor Benchmark
Treasury Yields
yield curve Forex Race US$vs, US$vs,
andtoRates
Yield maturity of current bills, Yen, euro vs. dollar; dollar vs. Country/currency
Thurs YTDchg
in US$ per US$ (%) Country/currency
Thurs YTDchg
in US$ per US$ (%)
U.S. consumer rates Selected rates notes and bonds major U.S. trading partners
Americas Thailand baht .02936 34.060 4.9
A consumer rate against its Money market accounts Vietnam dong .00004399 22735 0.2
5.00% Argentina peso .0585 17.0870 7.7
benchmark over the past year 10% Brazil real .3033 3.2967 1.3 Europe
Bankrate.com avg: 0.33% WSJ Dollar index
s
4.00 Canada dollar .7704 1.2980 3.4 Czech Rep. koruna .04371 22.877 10.9
Ally Bank 1.15% 5
Chile peso .001503 665.50 0.6 Denmark krone .1536 6.5101 7.9
0.90% Midvale, UT 877-247-2559 .0003247 3079.57 2.6 1.1424 .8754 7.9
3.00 0 Colombia peso Euro area euro
Federal-funds
Barclays 1.15% Ecuador US dollar 1 1 unch Hungary forint .003705 269.89 8.3
t

target rate 0.60 Thursday 2.00

Wilmington, DE 888-720-8756 5 Mexico peso .0548 18.2572 12.0 Iceland krona .009614 104.02 7.9
t s Peru new sol .3074 3.253 3.0 Norway krone .1197 8.3526 3.4
1.15% Yen Euro
s

0.30 CIT Bank 1.00

t

t 10 Uruguay peso .03457 28.9300 1.4 Poland zloty .2695 3.7104 11.4
Salt Lake City, UT 855-462-2652 One year ago Venezuela b. fuerte .098935 10.1077 1.1 Russia ruble .01664 60.081 1.9
Money market 0.00 0.00 15
MyBankingDirect,aserviceofNYCommunityBank 1.15% Asia-Pacific Sweden krona .1185 8.4421 7.3
account yields 1 3 6 1 2 3 5 710 30
New York, NY 2016 2017 Switzerland franc 1.0412 .9604 5.7
866-285-1856 Australian dollar .7587 1.3180 5.1
0.30 month(s) years Turkey lira .2762 3.6211 2.8
My e-BAnC 1.15% China yuan .1470 6.8017 2.1
A SOND J FMAM JJ maturity Ukraine hryvnia .0383 26.0813 3.7
Hong Kong dollar .1280 7.8106 0.7
2016 2017 Coral Gables, FL 855-512-0989 UK pound 1.2970 .7710 4.8
India rupee .01545 64.730 4.8
Sources: Ryan ALM; Tullett Prebon; WSJ Market Data Group Middle East/Africa
Indonesia rupiah .0000747 13389 1.0
Yield/Rate (%) 52-Week Range (%) 3-yr chg Japan yen .008833 113.22 3.2 Bahrain dinar 2.6522 .3770 0.03
Interest rate Last (l)Week ago Low 0 2 4 6 8 High (pct pts)
Kazakhstan tenge .003082 324.44 2.8 Egypt pound .0559 17.8740 1.4
Federal-funds rate target 1.00-1.25 1.00-1.25 0.25 l 1.25 1.00 Corporate Borrowing Rates and Yields Macau pataca .1244 8.0417 1.6 Israel shekel .2834 3.5284 8.3
Malaysia ringgit .2327 4.2980 4.2 Kuwait dinar 3.2987 .3031 0.8
Prime rate* 4.25 4.25 3.50 l 4.25 1.00 Yield (%) 52-Week Total Return (%)
Bond total return index Close Last Week ago High Low 52-wk 3-yr New Zealand dollar .7277 1.3742 4.8 Oman sul rial 2.5970 .3851 0.02
Libor, 3-month 1.30 1.30 0.66 l 1.30 1.07 Pakistan rupee .00944 105.950 1.5 Qatar rial .2748 3.639 0.03
Money market, annual yield 0.33 0.33 0.23 l 0.36 -0.07 Treasury, Ryan ALM 1448.569 2.070 1.990 2.237 1.158 4.486 2.757 Philippines peso .0197 50.647 2.1 Saudi Arabia riyal .2666 3.7504 0.01
Five-year CD, annual yield 1.39 1.38 1.17 l 1.39 0.01 10-yr Treasury, Ryan ALM 1719.381 2.369 2.270 2.609 1.366 2.095 2.822 Singapore dollar .7235 1.3822 4.5 South Africa rand .0744 13.4430 1.8
30-year mortgage, fixed 4.06 3.98 3.43 l 4.33 -0.28 South Korea won .0008641 1157.25 4.2
DJ Corporate 373.354 3.071 2.987 3.390 2.460 0.154 4.041 Close Net Chg % Chg YTD%Chg
Sri Lanka rupee .0065181 153.42 3.4
15-year mortgage, fixed 3.25 3.18 2.70 l 3.50 -0.18 Aggregate, Barclays Capital 1915.980 2.600 2.530 2.790 1.830 1.169 2.605 Taiwan dollar .03269 30.593 5.7 WSJ Dollar Index 88.17 0.190.22 5.13
Jumbo mortgages, $424,100-plus 4.55 4.46 4.02 l 4.88 -0.31 High Yield 100, Merrill Lynch 2808.501 5.314 5.228 6.448 5.050 10.230 3.083 Sources: Tullett Prebon, WSJ Market Data Group
Five-year adj mortgage (ARM) 3.46 3.40 3.04 l 4.03 -0.55
Fixed-Rate MBS, Barclays 1962.460 2.890 2.840 3.120 1.960 0.421 2.307
New-car loan, 48-month 3.15 3.08 2.87 l 3.36 -0.03
HELOC, $30,000 5.13 5.11 4.57 l 5.13 0.52
Muni Master, Merrill 514.694 2.011 1.979 2.516 1.316 0.818 2.878 COMMODITIES
Bankrate.com rates based on survey of over 4,800 online banks. *Base rate posted by 70% of the nation's largest EMBI Global, J.P. Morgan 779.113 5.695 5.544 6.290 5.134 3.648 4.446 Commodities Thursday 52-Week YTD
banks. Excludes closing costs. Pricing trends on someClose
raw materials, or commodities
Sources: SIX Financial Information; WSJ Market Data Group; Bankrate.com Sources: J.P. Morgan; Ryan ALM; S&P Dow Jones Indices; Barclays Capital; Merrill Lynch Net chg % Chg High Low % Chg % chg

DJ Commodity 554.92 1.27 0.23 589.81 506.18 5.70 -2.17

ONLINE 174.43 0.45 195.14 -6.07 -9.39

WSJ
TR/CC CRB Index 0.77 166.50
Crude oil, $ per barrel 45.52 0.39 0.86 54.45 39.51 0.84 -15.26
Real-time U.S. stock quotes are available on WSJ.com. Track most-active stocks, new highs/lows, mutual funds and ETFs. Natural gas, $/MMBtu 2.888 0.048 1.69 3.93 2.55 4.00 -22.45
.COM
Plus, get deeper money-flows data and email delivery of key stock-market data. All are available free at WSJMarkets.com Gold, $ per troy oz. 1222.20 1.80 0.15 1364.40 1127.80 -10.14 6.28
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
B8 | Friday, July 7, 2017 THE WALL STREET JOURNAL.

COMMODITIES WSJ.com/commodities

Futures Contracts Open

Contract
High hilo Low Settle Chg
Open
interest
Cash Prices Thursday, July 06, 2017
Metal & Petroleum Futures Coffee (ICE-US)-37,500 lbs.; cents per lb. These prices reflect buying and selling of a variety of actual or physical commodities in the marketplace
Contract Open
July 126.25 128.65 126.25 126.75 .90 49 separate from the futures price on an exchange, which reflects what the commodity might be worth in future
Sept 129.70 131.30 127.55 129.10 .90 119,134
Open High hi lo Low Settle Chg interest
Sugar-World (ICE-US)-112,000 lbs.; cents per lb.
months.
Copper-High (CMX)-25,000 lbs.; $ per lb. Oct 13.65 13.94 13.53 13.92 .20 441,355 Thursday Thursday Thursday
July 2.6500 2.6555 2.6425 2.6515 0.0025 4,480 March'18 14.40 14.64 14.27 14.62 .19 171,619 Coins,wholesale $1,000 face-a 12177 Soybeans,No.1 yllw IL-bp,u 9.5450
Sept 2.6615 2.6710 2.6515 2.6615 0.0015 141,804 Sugar-Domestic (ICE-US)-112,000 lbs.; cents per lb. Energy Wheat,Spring14%-pro Mnpls-u 8.7400
Gold (CMX)-100 troy oz.; $ per troy oz. Other metals
Sept 27.44 27.45 27.44 27.67 .12 2,038 Propane,tet,Mont Belvieu-g 0.6099 Wheat,No.2 soft red,St.Louis-bp,u 5.4350
July 1225.10 1225.10 1222.40 1222.20 1.80 75
LBMA Platinum Price PM *901.0
Nov 27.60 27.60 27.45 27.53 .03 1,870 Butane,normal,Mont Belvieu-g 0.7538 Wheat - Hard - KC (USDA) $ per bu-u 5.0850
Aug 1226.50 1229.50 1221.80 1223.30 1.60 285,238 Platinum,Engelhard industrial 908.0
Cotton (ICE-US)-50,000 lbs.; cents per lb. NaturalGas,HenryHub-i 2.880 Wheat,No.1soft white,Portld,OR-u 5.4850
Oct 1230.20 1232.00 1225.60 1226.90 1.60 18,177 July 74.48 75.22 74.48 75.01 1.15 126
Platinum,Engelhard fabricated 1008.0
1233.40 1236.60 1229.20 1230.60 1.70 121,243 NaturalGas,TranscoZone3-i 2.840 Palladium,Engelhard industrial 839.0
Dec Dec 67.73 68.44 67.21 68.35 .69 161,542
NaturalGas,TranscoZone6NY-i 2.190
Food
Feb'18 1236.70 1236.80 1233.20 1234.10 1.70 12,571 Orange Juice (ICE-US)-15,000 lbs.; cents per lb. Palladium,Engelhard fabricated 939.0
June 1243.10 1243.50 1240.60 1241.10 1.80 7,453 July 137.70 137.70 137.70 134.80 2.70 22
NaturalGas,PanhandleEast-i 2.510 Aluminum, LME, $ per metric ton *1913.0 Beef,carcass equiv. index
Palladium (NYM) - 50 troy oz.; $ per troy oz. Sept 140.05 141.15 135.50 136.80 2.55 7,188 NaturalGas,Opal-i 2.660 Copper,Comex spot 2.6515 choice 1-3,600-900 lbs.-u 193.37
July 837.90 837.90 837.90 844.20 2.55 8 NaturalGas,MarcellusNE PA-i 1.960 Iron Ore, 62% Fe CFR China-s 61.3 select 1-3,600-900 lbs.-u 174.73
Aug 837.90 837.90 837.90 837.65 1.40 4 Interest Rate Futures NaturalGas,HaynesvilleN.LA-i 2.810 Broilers,dressed 'A'-u n.a.
Shredded Scrap, US Midwest-s,w 296
Sept 836.50 843.25 827.50 832.20 2.20 30,862 Coal,C.Aplc.,12500Btu,1.2SO2-r,w 52.550 Broilers, National comp wghtd-u,w 1.0797
Dec 834.30 837.95 825.65 828.80 1.60 2,829 Treasury Bonds (CBT)-$100,000; pts 32nds of 100% Steel, HRC USA, FOB Midwest Mill-s 611
Coal,PwdrRvrBsn,8800Btu,0.8SO2-r,w 11.550 Butter,AA Chicago 2.5725
March'18 821.10 821.10 821.10 822.60 2.10 137 Sept 153-130 153-150 151-280 152-090 1-02.0 734,486 Fibers and Textiles Cheddar cheese,bbl,Chicago 136.75
Platinum (NYM)-50 troy oz.; $ per troy oz. Dec 152-020 152-070 150-220 151-020 1-03.0 166 Metals Cheddar cheese,blk,Chicago 155.50
July 906.50 906.50 904.90 907.20 1.50 89 Treasury Notes (CBT)-$100,000; pts 32nds of 100% Burlap,10-oz,40-inch NY yd-n,w 0.6000
Sept 125-100 125-110 124-255 124-315 7.5 3,100,124 Gold, per troy oz Milk,Nonfat dry,Chicago lb. 86.25
Oct 912.00 913.50 906.00 910.30 1.50 69,013 Cotton,1 1/16 std lw-mdMphs-u 0.6797
Silver (CMX)-5,000 troy oz.; $ per troy oz. Dec 124-300 124-305 124-140 124-195 8.0 5,621 Engelhard industrial 1227.73 Cocoa,Ivory Coast-w 2205
Cotlook 'A' Index-t *83.65 Coffee,Brazilian,Comp 1.2670
July 15.995 16.000 15.885 15.927 0.085 828 5 Yr. Treasury Notes (CBT)-$100,000; pts 32nds of 100% Engelhard fabricated 1319.81
Hides,hvy native steers piece fob-u 66.000 Coffee,Colombian, NY 1.4960
Sept 16.055 16.080 15.910 15.983 0.087 158,618 Sept 117-217 117-230 117-132 117-177 2.2 3,030,286 Handy & Harman base 1224.90
2 Yr. Treasury Notes (CBT)-$200,000; pts 32nds of 100% Handy & Harman fabricated 1359.63
Wool,64s,staple,Terr del-u,w n.a. Eggs,large white,Chicago-u 0.6650
Crude Oil, Light Sweet (NYM)-1,000 bbls.; $ per bbl.
Aug 45.65 46.53 45.18 45.52 0.39 487,969 Sept 108-000 108-002 107-300 107-317 .5 1,379,463 LBMA Gold Price AM *1221.90 Grains and Feeds Flour,hard winter KC 17.85
Sept 45.87 46.73 45.37 45.70 0.36 330,354 30 Day Federal Funds (CBT)-$5,000,000; 100 - daily avg. LBMA Gold Price PM *1220.30 Hams,17-20 lbs,Mid-US fob-u n.a.
Oct 46.07 46.92 45.58 45.89 0.34 123,498 July 98.850 98.850 98.848 98.850 279,203 Krugerrand,wholesale-e 1272.91 Barley,top-quality Mnpls-u 4.70 Hogs,Iowa-So. Minnesota-u 86.24
Dec 46.61 47.42 46.12 46.40 0.30 315,116 Oct 98.785 98.795 98.780 98.790 .010 255,586 Maple Leaf-e 1285.15 Bran,wheat middlings, KC-u 65 Pork bellies,12-14 lb MidUS-u n.a.
June'18 47.66 48.38 47.21 47.53 0.22 116,430 10 Yr. Del. Int. Rate Swaps (CBT)-$100,000; pts 32nds of 100% American Eagle-e 1285.15 Corn,No. 2 yellow,Cent IL-bp,u 3.5750 Pork loins,13-19 lb MidUS-u 1.2782
Dec 48.58 49.10 48.05 48.38 0.15 157,565 Sept 100.828 100.953 t 100.688 100.875 .281 29,744 Mexican peso-e 1483.72 Corn gluten feed,Midwest-u,w 74.3 Steers,Tex.-Okla. Choice-u 117.00
NY Harbor ULSD (NYM)-42,000 gal.; $ per gal. 1 Month Libor (CME)-$3,000,000; pts of 100% Austria crown-e 1202.72 Corn gluten meal,Midwest-u,w 468.8 Steers,feeder,Okla. City-u,w n.a.
Aug 1.4921 1.5096 1.4726 1.4819 .0034 118,278 July ... ... ... 98.7750 6,541
Austria phil-e 1285.15 Cottonseed meal-u,w n.a.
Sept 1.4980 1.5156 1.4790 1.4880 .0033 70,355 Eurodollar (CME)-$1,000,000; pts of 100% Hominy feed,Cent IL-u,w 92 Fats and Oils
Gasoline-NY RBOB (NYM)-42,000 gal.; $ per gal. July 98.6975 98.6975 98.6925 98.6925 .0025 217,869 Silver, troy oz.
Sept 98.6400 98.6400 98.6250 98.6350 1,505,245 Engelhard industrial 16.0200 Meat-bonemeal,50% pro Mnpls-u,w 290 Corn oil,crude wet/dry mill-u,w 37.0000
Aug 1.5205 1.5417 1.5090 1.5287 .0263 134,228
Sept 1.5097 1.5278 1.4953 1.5133 .0226 79,986 Dec 98.5050 98.5200 98.4950 98.5100 .0050 1,817,732 Engelhard fabricated 19.2240 Oats,No.2 milling,Mnpls-u n.a. Grease,choice white,Chicago-h 0.3150
Natural Gas (NYM)-10,000 MMBtu.; $ per MMBtu. Dec'18 98.1500 98.1600 98.1200 98.1400 .0050 1,346,941 Handy & Harman base 15.9400 Rice, 5% Broken White, Thailand-l,w 429.00 Lard,Chicago-u n.a.
Aug 2.857 2.893 2.849 2.888 .048 290,934 Handy & Harman fabricated 19.9250 Rice, Long Grain Milled, No. 2 AR-u,w 21.50 Soybean oil,crude;Centl IL-u 0.3215
Sept 2.851 2.891 2.848 2.881 .044 185,628 Currency Futures LBMA spot price 12.3610 Sorghum,(Milo) No.2 Gulf-u 7.9250 Tallow,bleach;Chicago-h 0.3550
Oct 2.879 2.917 2.875 2.908 .043 180,704 (U.S.$ equivalent) 16.0100 SoybeanMeal,Cent IL,rail,ton48%-u 322.00 Tallow,edible,Chicago-u n.a.
Jan'18 3.192 3.230 3.188 3.217 .036 106,926 Japanese Yen (CME)-12,500,000; $ per 100
March 3.133 3.162 3.125 3.149 .033 78,927 July .8841 .8861 .8817 .8833 .0006 1,356
April 2.781 2.797 2.772 2.790 .021 93,415 Sept .8861 .8885 .8840 .8856 .0006 215,344 KEY TO CODES: A=ask; B=bid; BP=country elevator bids to producers; C=corrected; E=Manfra,Tordella & Brooks; G=ICE; H=Hurley Brokerage; I=Natural Gas Intelligence;
Canadian Dollar (CME)-CAD 100,000; $ per CAD L=livericeindex.com; M=midday; N=nominal; n.a.=not quoted or not available; R=SNL Energy; S=The Steel Index; T=Cotlook Limited; U=USDA; W=weekly, Z=not quoted.
July .7710 .7739 .7709 .7718 .0007 387 *Data as of 7/5
Agriculture Futures Sept .7725 .7747 .7711 .7725 .0007 145,407 Source: WSJ Market Data Group
Corn (CBT)-5,000 bu.; cents per bu. British Pound (CME)-62,500; $ per
July 380.00 381.25 374.75 380.25 1.50 4,096 July 1.2951 1.2986 1.2929 1.2976 .0039 1,311
390.25 391.50 382.00 390.50 1.50 597,440 Sept 1.2966 1.3013 1.2949 1.3001 .0039 194,387
Bonds | WSJ.com/bonds
Sept
Oats (CBT)-5,000 bu.; cents per bu. Swiss Franc (CME)-CHF 125,000; $ per CHF
July 272.00 272.00 272.00 272.75 7.00 95 Sept 1.0420 1.0462 1.0397 1.0452 .0043 38,066
1.0506 1.0522 1.0462 1.0515 .0043 250
Dec 288.75 290.00
Soybeans (CBT)-5,000 bu.; cents per bu.
270.50 276.25 11.00 4,466 Dec
Australian Dollar (CME)-AUD 100,000; $ per AUD Tracking Bond Benchmarks
July 979.00 982.00 970.00 980.75 4.50 2,471 July .7590 .7613 .7577 .7584 .0010 462
Aug .7605 .7610 .7575 .7581 .0010 304
Return on investment and spreads over Treasurys and/or yields paid to investors compared with 52-week
Nov 996.00 1000.50 985.00 999.25 5.00 360,595
Soybean Meal (CBT)-100 tons; $ per ton. Sept .7596 .7608 .7570 .7578 .0010 96,946 highs and lows for different types of bonds
July 317.50 320.00 314.90 320.00 3.50 2,428 Dec .7581 .7598 .7562 .7569 .0010 1,442 Total Total
Dec 327.50 330.00 323.30 329.70 4.10 167,661 Mexican Peso (CME)-MXN 500,000; $ per MXN return YTD total Yield (%) return YTD total Yield (%)
Soybean Oil (CBT)-60,000 lbs.; cents per lb. July .05596 .05598 s .05508 .05461 .00002 95 close return (%) Index Latest Low High close return (%) Index Latest Low High
July 33.05 33.10 32.69 32.83 .32 2,596 Euro (CME)-125,000; $ per
Dec 33.55 33.71 33.23 33.38 .33 163,555 July 1.1357 1.1429 1.1336 1.1427 .0079 2,090 Broad Market Bloomberg Barclays Mortgage-Backed Bloomberg Barclays
Rough Rice (CBT)-2,000 cwt.; $ per cwt. Sept 1.1394 1.1468 1.1372 1.1465 .0079 417,726
1962.46 1.1 Mortgage-Backed 2.890 1.960 3.120
July 1165.00 1165.00 1164.50 1164.50 3.50 99 1915.98 2.0 U.S. Aggregate 2.600 1.830 2.790
Sept 1190.00 1193.00 1182.50 1192.50 2.00 8,327 Index Futures U.S. Corporate Indexes Bloomberg Barclays 1935.20 0.9 Ginnie Mae (GNMA) 2.850 1.870 3.090
Wheat (CBT)-5,000 bu.; cents per bu.
July 519.00 528.75 519.00 519.00 20.25 495 Mini DJ Industrial Average (CBT)-$5 x index 2722.74 3.5 U.S. Corporate 3.240 2.750 3.520 1149.29 1.2 Fannie mae (FNMA) 2.910 1.950 3.120
Sept 560.00 560.00 535.00 539.00 21.00 212,491 Sept 21420 21441 21257 21280 142 131,069
Wheat (KC)-5,000 bu.; cents per bu. Dec 21365 21365 21222 21240 139 201 2585.01 2.5 Intermediate 2.770 2.190 3.010 1770.01 1.3 Freddie Mac (FHLMC) 2.920 2.000 3.130
July 528.75 540.75 528.75 530.50 20.75 860 S&P 500 Index (CME)-$250 x index
Sept 569.00 569.00 543.50 546.50 23.00 132,973 3715.38 5.8 Long term 4.290 3.960 4.710 514.69 3.2 Muni Master 2.011 1.316 2.516
Sept 2428.00 2430.10 2405.80 2408.40 19.60 44,036
Wheat (MPLS)-5,000 bu.; cents per bu. Mini S&P 500 (CME)-$50 x index 360.22 3.7 7-12 year 2.022 1.342 2.618
July ... 812.75 763.25 763.25 47.25 30 556.92 2.5 Double-A-rated 2.700 1.980 2.870
Sept 2428.00 2430.50 2405.25 2408.50 19.50 2,829,632
Sept 828.00 828.50 762.00 769.00 50.75 33,861 399.92 3.7 12-22 year 2.564 1.624 3.047
Dec 2426.00 2428.25 2403.50 2406.50 19.50 22,777 700.50 4.0 Triple-B-rated 3.540 3.180 3.870
Cattle-Feeder (CME)-50,000 lbs.; cents per lb.
Aug 142.850 145.350 141.200 144.625 2.400 29,909 Mini S&P Midcap 400 (CME)-$100 x index High Yield Bonds Merrill Lynch 385.85 4.0 22-plus year 3.041 2.043 3.622
Sept 143.025 145.400 141.550 144.775 2.050 11,820 Sept 1750.30 1751.30 1727.80 1730.20 21.70 94,658
Cattle-Live (CME)-40,000 lbs.; cents per lb. Mini Nasdaq 100 (CME)-$20 x index 407.32 4.8 High Yield Constrained 5.747 5.456 7.104 Global Government J.P. Morgan
Aug 113.600 115.625 112.425 114.950 1.400 148,589 Sept 5650.5 5652.8 5580.0 5596.8 54.8 287,807
Oct 112.800 114.375 111.700 113.875 1.050 119,042 405.66 5.5 Triple-C-rated 10.662 9.584 15.470 n.a. n.a. Global Government n.a. n.a. n.a.
Dec 5655.0 5655.5 5588.0 5603.0 55.3 965
Hogs-Lean (CME)-40,000 lbs.; cents per lb. Mini Russell 2000 (ICE-US)-$100 x index n.a. n.a. Canada n.a. n.a. n.a.
July 92.475 92.475 91.200 91.475 .575 15,610 2808.50 4.7 High Yield 100 5.314 5.050 6.448
Sept 1418.70 1419.60 1398.10 1400.30 18.20 568,071
Aug 84.675 84.825 82.200 82.650 1.925 91,901
Dec 1410.80 1411.40 1398.60 1399.40 18.20 111 368.93 4.8 Global High Yield Constrained 5.400 5.129 6.744 n.a. n.a. EMU n.a. n.a. n.a.
Lumber (CME)-110,000 bd. ft., $ per 1,000 bd. ft.
365.60 365.90 359.60 362.30 2.50 785 Mini Russell 1000 (ICE-US)-$100 x index n.a. n.a. France n.a. n.a. n.a.
July 298.66 4.1 Europe High Yield Constrained 2.743 2.537 4.249
Sept 355.60 355.80 344.40 352.80 1.60 2,187 Sept 1341.10 1342.10 1332.90 1333.30 12.50 8,161
Milk (CME)-200,000 lbs., cents per lb. U.S. Dollar Index (ICE-US)-$1,000 x index U.S Agency Bloomberg Barclays n.a. n.a. Germany n.a. n.a. n.a.
July 15.73 15.80 15.60 15.72 .04 5,069 Sept 96.01 96.11 95.56 95.58 .48 47,070
Aug 16.56 16.74 16.50 16.66 .14 4,433 Dec 95.83 95.89 95.35 95.37 .48 1,412 1628.88 1.5 U.S Agency 1.880 1.160 1.960 n.a. n.a. Japan n.a. n.a. n.a.
Cocoa (ICE-US)-10 metric tons; $ per ton. 1460.52 1.0 10-20 years 1.690 0.980 1.750 n.a. n.a. Netherlands n.a. n.a. n.a.
July 1,911 1,911 1,911 1,890 20 14
Source: SIX Financial Information
Sept 1,938 1,947 1,893 1,927 20 131,838 3285.92 5.2 20-plus years 3.030 2.390 3.460 n.a. n.a. U.K. n.a. n.a. n.a.
2415.95 3.1 Yankee 2.830 2.320 3.090 779.11 5.4 Emerging Markets ** 5.695 5.134 6.290
*Constrained indexes limit individual issuer concentrations to 2%; the High Yield 100 are the 100 largest bonds In local currency Euro-zone bonds

Watching the Gauges: U.S. Supply and Demand ** EMBI Global Index Sources: Merrill Lynch; Bloomberg Barclays; J.P.Morgan

Inventories, imports and demand for the week ended June 30. Current figures are in thousands of barrels or Global Government Bonds: Mapping Yields
thousands of gallons per day, except natural-gas figures, which are in billions of cubic feet. Natural-gas import
Natural-gas import and demand data are available monthly only. Yields and spreads over or under U.S. Treasurys on benchmark two-year and 10-year government bonds in
selected other countries; arrows indicate whether the yield rose(s) or fell (t) in the latest session
Inventories, 000s barrels Imports, 000s barrels per day
Country/ Yield (%) Spread Under/Over U.S. Treasurys, in basis points
Expected Previous Year 4-week 5-year Expected Previous Year 4-week 5-year Coupon (%) Maturity, in years Latest(l) 0 20 40 60 80 100 120 Previous Month ago Year ago Latest Prev Year ago
Current change week ago avg avg Current change week ago avg avg
1.250 U.S. 2 1.407 s l 1.406 1.302 0.581
Crude oil and 2.375 10 2.372 s l 2.323 2.147 1.371
petroleum prod 1,338,800 ... 1,352 1,375 1,349 1,200 10,033 ... 9,832 10,568 9,956 9,846
5.250 Australia 2 1.707 s l 1.696 1.571 1.565 30.0 29.0 98.3
Crude oil
excluding SPR 502,914 -2,500 509 524 508 421 ... 8,016 8,363 7,915 7,853 4.750 10 2.593 s l 2.582 2.383 1.873 22.0 25.9 50.2
7,742
Gasoline 237,303 ... 241 239 241 221 739 ... 571 765 698 694 0.000 France 2 -0.350 s l -0.404 -0.536 -0.600 -175.7 -181.0 -118.1
Finished gasoline 22,299 -1,400 23 25 22 36 10 ... 54 78 44 70 1.000 10 0.923 s l 0.816 0.673 0.136 -145.0 -150.8 -123.5
Reformulated 50 ... 0 0 0 0 0 ... 0 0 0 0
0.000 Germany 2 -0.597 s l -0.619 -0.761 -0.678 -200.3 -202.5 -125.9
Conventional 22,249 ... 23 25 22 36 10 ... 54 78 44 70
0.250 10 0.565 s l 0.470 0.254 -0.173 -180.8 -185.3 -154.4
Blend. components 215,004 ... 218 214 218 184 729 ... 516 686 654 624
Natural gas (bcf) 2,816 ... 3 3 3 3 ... ... ... ... ... 0.300 Italy 2 -0.276 s l -0.306 -0.241 -0.085 -168.2 -171.3 -66.6
...
Kerosene-type 2.200 10 2.266 s l 2.139 2.257 1.161 -10.6 -18.4 -21.0
jet fuel 40,959 ... 42 40 42 39 125 ... 108 25 113 87 0.100 Japan 2 -0.102 s l -0.117 -0.141 -0.336 -150.8 -152.3 -91.8
Distillates 150,422 -100 152 149 152 134 108 ... 139 61 99 97 0.100 10 0.097 s l 0.085 0.045 -0.274 -227.5 -223.8 -164.5
Heating oil 9,521 ... 10 12 10 17 46 ... 13 26 22 16 2.750 Spain 2 -0.176 s l -0.228 -0.289 -0.169 -163.4 -75.0
-158.3
Diesel 140,900 ... 143 137 142 117 63 ... 126 35 78 81
1.500 10 1.664 s l 1.542 1.524 1.166 -70.9 -78.2 -20.5
Residual fuel oil 36,699 ... 38 40 39 38 261 ... 105 251 144 195
Other oils 288,363 ... 289 276 288 257 946 ... 792 1,022 891 825 1.750 U.K. 2 0.364 s l 0.312 0.087 0.141 -104.3 -109.4 -44.0
Net crude, petroleum 4.250 10 1.318 s l 1.263 0.983 0.767 -105.4 -106.0 -60.4
products, incl. SPR 2,020,837 ... 2,035 2,070 2,032 1,895 4,917 ... 4,233 6,076 4,760 6,248 Source: Tullett Prebon
Corporate Debt
Weekly Demand, 000s barrels per day Natural gas storage in that same companys share price.
Expected Previous Year 4-week 5-year
Current change week ago avg avg
Billions of cubic feet; weekly totals Investment-grade spreads that tightened the most
Spread*, in basis points Stock Performance
Issuer Symbol Coupon (%) Maturity Current One-day change Last week Close ($) % chg
Total petroleum Natural gas,
product 22,225 ... 19,646 20,050 20,613 19,330 lower 48 states 4250 Bnp Paribas S.A. BNP 7.625 March 30, 49 183 17 198 ... ...
t Union Pacific UNP 4.375 Nov. 15, 65 107 15 n.a. 107.76 0.45
Finished
3250 Toyota Motor Credit TOYOTA 2.800 July 13, 22 45 13 n.a. ... ...
motor gasoline 9,705 ... 9,538 9,755 9,582 9,098 t Bank of America BAC 2.151 Nov. 9, 20 62 12 n.a. 24.71 0.84
Kerosene-type Five-year average 2250 Dell International DELL 4.420 June 15, 21 98 8 106 ... ...
jet fuel 1,973 ... 1,568 1,624 1,867 1,576 for each week Progress Energy DUK 4.875 Dec. 1, 19 82 8 n.a.
Distillates 4,322 ... 4,029 3,933 4,139 3,517 1250 Macquarie Infrastructure MIC 2.875 July 15, 19 36 8 n.a. 77.47 0.50
Residual fuel oil 531 ... 521 315 394 226 AT&T T 4.600 Feb. 15, 21 55 8 n.a. 37.18 1.20
Propane/propylene 1,161 ... 916 730 962 ... 250
Other oils 4,533 ... 3,075 3,693 3,670 ... J A S O N D J F M A M J
And spreads that widened the most
2016 2017 Seagate HDD Cayman STX 4.750 Jan. 1, 25 242 14 225
Note: Expected changes are provided by Dow Jones Newswires' survey of analysts. Previous and average inventory data are in millions. Chevron CVX 2.355 Dec. 5, 22 51 13 57 103.82 0.76
Sources: SIX Financial Information via WSJ Market Data Group; U.S. Energy Information Administration; Dow Jones Newswires JPMorgan Chase JPM 7.900 April 30, 49 5 13 32 93.38 0.32
Toyota Motor Credit TOYOTA 1.950 April 17, 20 35 12 34 ... ...

Exchange-Traded Portfolios | WSJ.com/ETFresearch Citigroup

Verizon Communications
C
VZ
3.400
4.750
May 1, 26
Nov. 1, 41
114
200
8
8
124
n.a.
67.63
43.52
1.20
1.25
Closing Chg YTD Bank of New York Mellon BK 2.500 April 15, 21 39 6 40 51.23 1.99
Largest 100 exchange-traded funds, latest session ETF Symbol Price (%) (%)
Energy Transfer ETP 6.125 Dec. 15, 45 267 6 269 20.33 0.54
SchwabUS LC SCHX 57.46 0.93 7.9
Thursday, July 6, 2017 Closing Chg YTD
Closing Chg YTD ETF Symbol Price (%) (%) SPDR DJIA Tr
SPDR S&PMdCpTr
DIA
MDY
213.14
314.91
0.67
1.22
7.9
4.4
High-yield issues with the biggest price increases
ETF Symbol Price (%) (%) iShMSCI EAFE EFA 64.83 0.45 12.3 SPDR S&P 500 SPY 240.55 0.91 7.6 Bond Price as % of face value Stock Performance
AlerianMLPETF AMLP 11.91 0.08 5.5 iShMSCIEAFESC SCZ 57.31 0.43 15.0 SPDR S&P Div SDY 88.33 0.86 3.2 Issuer Symbol Coupon (%) Maturity Current One-day change Last week Close ($) % chg
CnsmrDiscSelSector XLY 88.41 1.02 8.6 iShMSCIEmgMarkets EEM 41.05 1.20 17.3 TechSelectSector XLK 54.38 0.91 12.4
CnsStapleSelSector XLP 54.54 0.57 5.5 iShMSCIEurozoneETF EZU 40.31 0.25 16.5 UtilitiesSelSector XLU 51.45 0.04 5.9 Hertz HTZ 7.375 Jan. 15, 21 99.947 2.22 96.063 11.17 1.27
iShMSCIJapanETF EWJ 53.01 0.73 8.5 VanEckGoldMiner GDX 21.49 1.24 2.7
DBGoldDoubleLgETN DGP 22.33 0.31 11.0 Genworth Holdings GNW 4.800 Feb. 15, 24 83.950 1.70 n.a.
iShNasdaqBiotech IBB 310.45 1.54 17.0 VangdInfoTech VGT 139.87 0.90 15.1
DBGoldDoubleShrt DZZ 6.06 0.33 11.6
iShNatlMuniBdETF MUB 109.92 0.06 1.6 VangdSC Val VBR 121.89 1.23 0.7 Genon Energy GENONE 9.500 Oct. 15, 18 60.000 1.50 60.000 ... ...
DeutscheXMSCIEAFE DBEF 30.00 0.70 6.9
EnSelectSectorSPDR XLE 64.11 1.11 14.9
iShRussell1000Gwth IWF 117.80 0.80 12.3 VangdDivApp VIG 92.19 0.81 8.2 Sanchez Energy SN 6.125 Jan. 15, 23 81.500 1.00 79.000 6.43 6.54
iShRussell1000ETF IWB 133.83 0.96 7.5 VangdFTSEDevMk VEA 41.01 0.61 12.2
FinSelSectorSPDR XLF 24.88 0.76 7.0
GuggS&P500EW RSP 91.91 1.10 6.1
iShRussell1000Val IWD 115.16 1.04 2.8 VangdFTSE EM VWO 40.50 1.10 13.2 Transocean RIG 7.500 April 15, 31 81.000 0.97 80.000 8.04 2.90
iShRussell2000Gwth IWO 166.72 1.31 8.3 VangdFTSE Europe VGK 54.93 0.36 14.6 CGG S.A. CGGFP 6.500 June 1, 21 32.625 0.88 n.a. ... ...
HealthCareSelSect XLV 78.82 1.29 14.3
iShRussell2000ETF IWM 139.14 1.31 3.2 VangdFTSEAWxUS VEU 49.75 0.54 12.6
IndSelSectorSPDR XLI 68.13 0.87 9.5
iShRussell2000Val IWN 117.46 1.28 1.2 VangdGrowth VUG 125.96 0.90 13.0 Rite Aid RAD 6.125 April 1, 23 99.500 0.88 97.125 2.36 4.84
iShIntermCredBd CIU 109.33 0.08 1.1
iSh1-3YCreditBond CSJ 105.12 0.02 0.2
iShRussell3000ETF IWV 142.56 0.96 7.2 VangdHlthCr VHT 146.60 1.39 15.6 Intelsat Luxembourg INTEL 7.750 June 1, 21 55.000 0.75 54.000 ... ...
iShRussellMid-Cap IWR 189.56 1.16 6.0 VangdHiDiv VYM 77.84 0.83 2.7
iSh3-7YTreasuryBd IEI 123.15 0.07 0.5 82.84 1.21 3.0 84.01 0.27 1.1
iShCoreHiDividend HDV 82.65 0.92 0.5
iShRussellMCValue
iShS&PMC400Growth
IWS
IJK 195.14 1.19 7.1
VangdIntermBd
VangdIntrCorpBd
BIV
VCIT 87.18 0.05 1.7
And with the biggest price decreases
iShCoreMSCIEAFEETF IEFA 60.49 0.51 12.8 iShS&P500Growth IVW 136.00 0.85 11.7 VangdLC VV 110.47 0.88 7.9
iShCoreMSCIEmgMk IEMG 49.56 1.20 16.7 iShS&P500ValueETF IVE 104.63 0.90 3.2 VangdMC VO 141.47 1.06 7.5
L Brands LB 6.750 July 1, 36 95.000 1.84 97.500 46.49 14.08
iShCoreS&P500ETF IVV 242.19 0.90 7.6 iShUSPfdStk PFF 38.98 0.31 4.8 VangdMC Val VOE 102.26 0.96 5.2 Frontier Communications FTR 10.500 Sept. 15, 22 94.250 1.38 95.750 1.10 5.17
iShCoreS&PMdCp IJH 172.35 1.26 4.2 iShTIPSBondETF TIP 112.81 0.26 0.3 VangdREIT VNQ 81.54 1.88 1.2
iShCoreS&PSmCpETF IJR 69.38 1.38 0.9 Altice Financing S.A. ALTICE 7.500 May 15, 26 110.063 1.31 112.000 ... ...
iSh1-3YTreasuryBd SHY 84.41 0.02 0.0 VangdS&P500 VOO 220.94 0.90 7.6
iShS&PTotlUSStkMkt ITOT 55.09 0.94 7.4 iSh7-10YTreasuryBd IEF 105.94 0.19 1.1 VangdST Bond BSV 79.68 0.01 0.3 CCO Holdings CHTR 5.125 May 1, 27 101.250 1.25 103.000
iShCoreUSAggBd AGG 108.94 0.19 0.8 iSh20+YTreasuryBd TLT 123.46 0.83 3.6 VangdSTCpBd VCSH 79.79 0.04 0.5
iShSelectDividend DVY 91.25 0.98 3.0 iShRussellMCGrowth IWP 106.82 1.13 9.7 VangdSC VB 134.15 1.40 4.0
Caesars Entertainment Operating CZR 12.750 April 15, 18 88.250 1.25 90.500
iShEdgeMSCIMinEAFE EFAV 68.44 0.48 11.8 PIMCOEnhShMaturity MINT 101.64 0.01 0.3 VangdTotalBd BND 81.36 0.23 0.7 First Quantum Minerals FMCN 7.250 May 15, 22 101.375 1.25 103.500 ... ...
iShEdgeMSCIMinUSA USMV 48.56 0.84 7.4 PwrShQQQ 1 QQQ 136.29 0.90 15.0 VangdTotIntlBd 54.12 0.18 0.3
iShGoldTr IAU 11.77 0.17 6.2
BNDX Western Digital WDC 10.500 April 1, 24 116.750 1.13 117.875 86.12 0.34
PwrShS&P500LoVol SPLV 44.44 0.65 6.9 VangdTotIntlStk VXUS 51.66 0.60 12.6
iShiBoxx$InvGrCpBd LQD 119.82 0.26 2.3 PwrShSrLoanPtf BKLN 23.12 0.04 1.0 VangdTotalStk VTI 123.66 0.98 7.2 Semgroup RRMS 5.625 Nov. 15, 23 95.250 1.05 n.a. ... ...
iShiBoxx$HYCpBd HYG 87.68 0.25 1.3 SPDRBloomBarcHYBd JNK 36.87 0.24 1.2 VangdTotlWrld VT 67.07 0.84 10.0
iShJPMUSDEmgBd EMB 112.83 0.55 2.4 SPDR Gold GLD 116.47 0.04 6.3 VangdValue VTV 96.28 0.93 3.5 *Estimated spread over 2-year, 3-year, 5-year, 10-year or 30-year hot-run Treasury; 100 basis points=one percentage pt.; change in spread shown is for Z-spread.
iShMBSETF MBB 106.30 0.16 0.0 SchwabIntEquity SCHF 31.58 0.50 14.1 WisdTrEuropeHdg HEDJ 62.16 1.11 8.3 Note: Data are for the most active issue of bonds with maturities of two years or more
iShMSCIACWIETF ACWI 65.09 0.75 10.0 SchwabUS BrdMkt SCHB 58.15 0.94 7.3 WisdTrJapanHdg DXJ 51.91 0.88 4.8 Sources: MarketAxess Corporate BondTicker; WSJ Market Data Group
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THE WALL STREET JOURNAL. Friday, July 7, 2017 | B9

BIGGEST 1,000 STOCKS

Net Net Net Net Net Net Net
How to Read the Stock Tables Footnotes: Stock Sym Close Chg Stock Sym Close Chg Stock Sym Close Chg Stock Sym Close Chg Stock Sym Close Chg Stock Sym Close Chg Stock Sym Close Chg
The following explanations apply to NYSE, s-New 52-week high.
NYSE Arca, NYSE MKT and Nasdaq Stock t-New 52-week low. MobileTeleSys MBT 7.94 0.15 Target TGT 51.44 -0.72 Coherent COHR 226.93 0.04 Grifols GRFS 20.43 -0.13 LibertyFormOne C FWONK 34.00 -2.29 OpenText OTEX 31.02 -0.13 TRowePrice TROW 74.23 -1.08
Market listed securities. Prices are composite dd-Indicates loss in the most recent Mobileye MBLY 63.00 0.04 TataMotors TTM 33.16 -0.22 Comcast A CMCSA 38.25 -0.46 HD Supply HDS 30.35 -0.53 LibertyBraves A BATRA 23.38 -0.27 PTC PTC 55.53 -0.58 TakeTwoSoftware TTWO 73.20 -0.08
quotations that include primary market trades four quarters. MohawkIndustries MHK 241.67 -2.09 TechnipFMC FTI 26.96 -0.48 CommerceBcshrs CBSH 56.69 -1.00 Hasbro HAS 111.12 -0.88 LibertyBraves C BATRK 23.25 -0.32 Paccar PCAR 67.20 0.81 Tesla TSLA 308.83-18.26
as well as trades reported by Nasdaq OMX FD-First day of trading. MolsonCoors B TAP 86.20 -0.24 TeckRscsB TECK 17.89 0.21 CommScope COMM 37.79 0.01 HenrySchein HSIC 181.11 -2.57 LibertySirius A LSXMA 41.14 -0.14 PacWestBancorp PACW 46.64 -0.54 TexasInstruments TXN 76.86 -0.05
BXSM (formerly Boston), Chicago Stock h-Does not meet continued listing Monsanto MON 117.61 -0.40 TelecomArgentina TEO 28.76 -0.16 Copart CPRT 30.43 -1.20 Hologic HOLX 44.59 -0.57 LibertySirius C LSXMK 40.94 -0.07 PaneraBread PNRA 314.75 0.03 t TractorSupply TSCO 51.50 -1.50
Exchange, CBOE, National Stock Exchange, ISE standards Moody's MCO 122.17 -1.81 TelecomItalia TI 9.22 0.03 CoStarGroup CSGP 266.03 -0.78 JBHunt JBHT 92.25 -1.00 LincolnElectric LECO 91.96 -0.47 Paychex PAYX 56.97 -0.52 Trimble TRMB 35.69 -0.23
and BATS. lf-Late filing MorganStanley MS 46.13 -0.03 TelecomItalia A TI/A 7.32 -0.05 Costco COST157.09 -0.93 HuntingtonBcshs HBAN 13.66 -0.14 LogitechIntl LOGI 36.48 -0.44 PayPal PYPL 53.47 -1.14 21stCenturyFoxA FOXA 27.95 -0.41
The list comprises the 1,000 largest q-Temporary exemption from Nasdaq Mosaic MOS 22.40 -0.47 Teleflex TFX 204.74 -3.05 Ctrip.com CTRP 53.13 -1.07 IAC/InterActive IAC 101.18 -1.38 LogMeIn LOGM 104.10 -0.20 People'sUtdFin PBCT 17.79 -0.23 21stCenturyFoxB FOX 27.52 -0.42
companies based on market capitalization. requirements. MotorolaSolutions MSI 85.96 -0.87 TelefonicaBras VIV 13.40 -0.35 DISH Network DISH 63.40 0.63 IdexxLab IDXX 159.26 -2.12 lululemon LULU 57.97 -1.78 Priceline PCLN 1872.30 6.29 UltaBeauty ULTA 273.24 -5.80
Underlined quotations are those stocks with t-NYSE bankruptcy NTTDoCoMo DCM 23.30 -0.17 Telefonica TEF 10.30 -0.01 DentsplySirona XRAY 64.29 -0.79 IHSMarkit INFO 43.93 -0.41 MarketAxess MKTX 193.38-12.37 Qiagen QGEN 32.90 -0.62 UltimateSoftware ULTI 210.18 -2.28
large changes in volume compared with the v-Trading halted on primary market. NVR NVR 2448.88 26.44 TelekmIndonesia TLK 34.36 0.43 DexCom DXCM 71.17 -1.99 IPG Photonics IPGP 147.51 -0.86 Marriott MAR 99.65 -1.52 Qorvo QRVO 64.01 -1.01 UnitedTherap UTHR 131.71 -2.15
issues average trading volume. vj-In bankruptcy or receivership or t NationalGrid NGG 61.43 -0.49 Tenaris TS 31.21 -0.13 DiamondbackEner FANG 85.96 -2.53 IcahnEnterprises IEP 50.78 -0.06 MarvellTech MRVL 16.07 -0.26 Qualcomm QCOM 54.79 -0.66 VCA WOOF 92.49 0.04
Boldfaced quotations highlight those issues being reorganized under the NatlOilwell NOV 32.28 -0.45 Teradyne TER 30.80 -0.08 DiscoveryComm B DISCB 27.75 1.10 Illumina ILMN 172.32 -2.03 Mattel MAT 20.76 -0.21 RandgoldRscs GOLD 87.37 -1.51 VEON VEON 3.91 0.02
whose price changed by 5% or more if their Bankruptcy Code, or securities NatlRetailProp NNN 38.33 -0.45 Tesoro TSO 94.13 ... DiscoveryComm A DISCA 25.78 -0.30 Incyte INCY 127.22 -1.12 MaximIntProducts MXIM 44.94 -0.03 RegenPharm REGN 490.19 -6.81 VeriSign VRSN 93.25 -1.19
previous closing price was $2 or higher. assumed by such companies. NewOrientalEduc EDU 71.00 -1.00 TesoroLogistics TLLP 51.50 -0.88 DiscoveryComm C DISCK 25.08 -0.37 Intel INTC 33.63 -0.71 MelcoResorts MLCO 21.46 -0.21 RossStores ROST 56.28 -1.11 VeriskAnalytics VRSK 83.48 -0.81
NY CmntyBcp NYCB 13.24 -0.07 TevaPharm TEVA 31.77 -0.94 DollarTree DLTR 67.93 -0.28 InteractiveBrkrs IBKR 37.65 -0.57 MercadoLibre MELI 251.10 2.12 Ryanair RYAAY 107.65 -0.92 VertxPharm VRTX 128.46 -0.54
Wall Street Journal stock tables reflect composite regular trading as of 4 p.m. and NewellBrands NWL 53.05 -0.65 Textron TXT 47.43 -0.60 E*TRADE ETFC 38.51 -0.19 Intuit INTU 131.10 -0.54 MicrochipTech MCHP 77.12 -0.82 SBA Comm SBAC 134.36 -0.05 Viacom A VIA 37.80 ...
changes in the closing prices from 4 p.m. the previous day. t NewfieldExpln NFX 26.24 -1.29 ThermoFisherSci TMO 175.04 -0.70 s EastWestBancorp EWBC 59.55 -0.51 IntuitiveSurgical ISRG 934.80 -3.29 MicronTech MU 30.10 -0.41 SEI Investments SEIC 53.38 -0.71 t Viacom B VIAB 33.07 0.07
NewmontMining NEM 32.28 -0.40 ThomsonReuters TRI 45.82 -0.48 eBay EBAY 34.03 -0.69 IonisPharma IONS 53.22 -1.54 Microsemi MSCC 47.75 0.42 Sina SINA 85.14 -0.30 Vodafone VOD 28.57 -0.03
NextEraEnergy NEE 139.57 0.75 ThorIndustries THO 103.13 -1.75 EchoStar SATS 59.24 -0.93 JD.com JD 39.11 -0.65 Microsoft MSFT 68.57 -0.51 SS&C Tech SSNC 38.57 -0.09 WPP WPPGY 103.24 -1.56
Thursday, July 6, 2017 Net Net NielsenHoldings NLSN 37.49 -0.48 3M MMM 208.02 -1.74 ElectronicArts EA 105.75 -1.01 JackHenry JKHY 102.62 -1.06 Middleby MIDD 121.93 -1.05 SVB Fin SIVB 177.11 -3.49 WalgreensBoots WBA 77.72 -0.92
Net Stock Sym Close Chg Stock Sym Close Chg Nike NKE 57.16 -0.40 Tiffany TIF 93.05 -0.02 Equinix EQIX 418.43 -5.65 JazzPharma JAZZ 154.05 -1.70 Momo MOMO 38.81 0.73 Sabre SABR 21.24 -0.50 Weibo WB 68.29 -0.33
Stock Sym Close Chg CIBC CM 81.94 0.07 GeneralDynamics GD 199.02 -1.72 NiSource NI 25.20 -0.15 s TimeWarner TWX101.50 0.33 Ericsson ERIC 7.12 -0.11 JetBlue JBLU 22.88 -0.16 Mondelez MDLZ 43.06 -0.06 ScrippsNetworks SNI 67.47 -1.14 WesternDigital WDC 86.12 -0.29
CanNtlRlwy CNI 81.39 -0.49 t GeneralElec GE 26.31 -1.04 t NobleEnergy NBL 27.16 -0.91 Toll Bros TOL 39.20 -0.41 ErieIndemnity A ERIE 122.68 -1.06 KLA Tencor KLAC 92.48 0.19 MonsterBeverage MNST 50.33 0.82 Seagate STX 37.29 -1.73 WholeFoods WFM 42.01 0.02
NYSE CanNaturalRes CNQ 28.44 0.04 t GeneralMills GIS 53.82 -0.50 Nokia NOK 6.14 -0.08 Torchmark TMK 76.73 -0.07 Exelixis EXEL 24.60 -0.37 KitePharma KITE 103.56 -2.94 Mylan MYL 37.65 -0.82 SeattleGenetics SGEN 51.15 -1.38 WillisTwrsWatson WLTW 145.03 -0.46
s CanPacRlwy CP 162.24 -0.37 GeneralMotors GM 34.87 -0.14 NomuraHoldings NMR 5.86 -0.10 Toro TTC 69.19 -0.32 Expedia EXPE 148.66 -1.49 KraftHeinz KHC 82.82 -0.97 NXP Semi NXPI 109.26 0.06 Shire SHPG 166.99 -2.34 WynnResorts WYNN 130.91 -1.51
ABB ABB 24.81 -0.02 Nordstrom JWN 47.38 -0.74 LKQ LKQ 31.39 -1.06 SignatureBank SBNY 142.05
Canon CAJ 33.32 -0.50 t GenuineParts GPC 86.74 -2.42 TorontoDomBk TD 50.23 -0.11 ExpeditorsIntl EXPD 56.18 -0.75 Nasdaq NDAQ 71.26 -0.42 -1.72 Xilinx XLNX 64.43 -0.28
t AES AES 10.68 -0.19 NorfolkSouthern NSC 121.24 -1.43 Total TOT 48.88 -0.05 ExpressScripts ESRX 62.53 -1.15 LamResearch LRCX 143.89 1.36 NetApp NTAP 38.30 -1.36 SiriusXM SIRI 5.35 -0.07 Yandex
CapitalOne COF 82.11 -0.59 Gerdau GGB 3.18 0.02 YNDX 26.04 0.07
Aflac AFL 77.53 -0.77 NorthropGrumman NOC 258.94 -1.34 TotalSystem TSS 57.62 -0.77 F5Networks FFIV 127.15 -1.76 LamarAdvertising LAMR 72.62 -0.86 Netease NTES 296.80 2.65 Skyworks SWKS 97.79 0.26 Zillow A
CardinalHealth CAH 76.89 -1.80 Gildan GIL 30.29 -0.54 ZG 47.01 -1.49
AGCO AGCO 67.83 -1.09 Novartis NVS 81.97 -1.16 ToyotaMotor TM 107.45 -1.08 Facebook FB 148.82 -1.52 LibertyBroadbandA LBRDA 84.02 -0.56 Netflix NFLX 146.25 -1.36 Splunk SPLK 56.27 -0.21 Zillow C
Carlisle CSL 95.83 -1.31 GlaxoSmithKline GSK 42.26 -0.40 Z 47.29 -1.43
AT&T T 37.18 -0.45 NovoNordisk NVO 41.94 -0.48 TransCanada TRP 48.24 0.49 Fastenal FAST 44.07 -0.10 LibertyBroadbandC LBRDK 85.35 -0.65 NewsCorp A NWSA 13.24 -0.49 Staples SPLS 10.08 -0.01 ZionsBancorp ZION 44.12 -0.62
CarMax KMX 63.51 0.14 GlobalPayments GPN 88.41 -1.47
AXIS Capital AXS 63.53 -2.22 Nucor NUE 59.19 0.03 TransDigm TDG 263.60 -4.71 FifthThirdBncp FITB 26.46 -0.12 LibertyGlobal A LBTYA 31.24 -0.85 NewsCorp B NWS 13.65 -0.50 Starbucks SBUX 57.60 -0.34
Carnival CCL 65.48 -1.06 GoDaddy GDDY 41.84 -0.44
AbbottLabs ABT 47.94 -1.06
AbbVie ABBV 71.73 -0.75
Carnival CUK 65.71 -1.06 Goldcorp GG 12.79 -0.06 NuSTAREnergy NS 46.18 -1.14
OGE Energy OGE 34.23 -0.11
TransUnion TRU 43.52 -0.61 Fiserv
Flex
FISV 121.79
FLEX 16.09
-0.56 LibertyGlobal C LBTYK 30.37
LibertyLiLAC A LILA 22.05
-0.62
-0.05
Nordson NDSN119.30 -1.56
NorthernTrust NTRS 97.54 -1.44
SteelDynamics STLD 36.86
Stericycle SRCL 75.23
0.38
-0.42
NYSE MKT
Caterpillar CAT 106.51 -0.98 GoldmanSachs GS 226.69 -1.35 Travelers TRV 126.18 -0.19 -0.09
Accenture ACN 122.94 -1.11 ONEOK OKE 52.60 1.85 TurkcellIletism TKC 8.09 -0.06 Fortinet FTNT 37.98 -0.65 LibertyLiLAC C LILAK 21.59 -0.02 NorwegianCruise NCLH 54.06 -1.35 Symantec SYMC 27.72 -0.07 BritishAmTob BTI 67.28 -0.88
Celanese A CE 95.07 0.15 Graco GGG 108.28 -1.02
AcuityBrands AYI 199.02 -1.86 OccidentalPetrol OXY 58.87 -0.88 TurquoiseHill TRQ 2.67 0.02 Gaming&Leisure GLPI 36.72 -0.43 LibertyQVC B QVCB 24.10 -0.70 NVIDIA NVDA 143.48 0.43 Synopsys SNPS 72.53 -0.21 CheniereEnergy LNG 46.91 -0.61
Cemex CX 9.66 -0.12 Grainger GWW 181.12 -3.06
Adient ADNT 66.16 0.08 Och-Ziff OZM 2.86 ... Twitter TWTR 17.92 0.10 Garmin GRMN 50.98 -1.09 LibertyQVC A QVCA 24.16 -0.30 OReillyAuto ORLY176.53 -2.24 TD Ameritrade AMTD 44.04 -0.57 CheniereEnerPtrs CQP 31.25 -0.54
CenovusEnergy CVE 7.08 0.04 GreatPlainsEner GXP 29.22 0.08
AdvanceAuto AAP 103.16 -2.05 OmegaHealthcare OHI 32.35 -0.71 TylerTech TYL 170.04 -1.20 GileadSciences GILD 69.48 -1.38 LibertyVenturesA LVNTA 51.02 -0.40 OldDomFreight ODFL 96.87 -0.74 TESARO TSRO 137.24 -2.81 CheniereEnHldgs CQH 26.50 -0.31
Centene CNC 79.70 -1.89 GpoAeroportuar PAC 109.66 -1.15
AdvSemiEngg ASX 6.24 -0.06 Omnicom OMC 81.54 -1.70 TysonFoods TSN 60.21 -1.36 Goodyear GT 35.10 0.03 LibertyFormOne A FWONA 32.99 -1.95 ON Semi ON 14.07 0.02 T-MobileUS TMUS 59.45 -0.50 ImperialOil IMO 28.24 -0.28
CenterPointEner CNP 27.28 -0.17 GpoAeroportSur ASR 204.48 -2.27
Aegon AEG 5.30 0.05 Oracle ORCL 48.85 -0.61 UBS Group UBS 17.31 -0.05
CentraisElBras EBR 4.74 0.60 GpoAvalAcciones AVAL 8.42 0.11
AerCap AER 46.58 -0.60 Orange ORAN 15.97 -0.11 UDR UDR 38.07 -0.97
CenturyLink CTL 23.90 0.16 GpFinSantandMex BSMX 9.52 -0.03
Aetna AET 152.33 -1.00 GrupoTelevisa TV 24.85 OrbitalATK OA 100.64 -0.66 UGI UGI 48.08 0.06
-0.14
New Highs and Lows | WSJ.com/newhighs
AffiliatedMgrs AMG 166.18 -4.11 Chemours CC 38.75 -0.55
Chevron CVX 103.82 -0.80 HCA Healthcare HCA 84.83 -2.41 Orix IX 79.79 -0.69 US Foods USFD 26.48 -0.35 52-Wk % 52-Wk %
AgilentTechs A 59.22 -0.55
HCP HCP 31.15 -1.00 OwensCorning OC 65.44 -1.36 UltraparPart UGP 23.23 -0.41 Stock Sym Hi/Lo Chg Stock Sym Hi/Lo Chg
AgnicoEagle AEM 43.97 -0.26 ChinaEastrnAir CEA 29.89 -0.30
ChinaLifeIns LFC 15.37 -0.12 HDFC Bank HDB 87.25 -0.79 PG&E PCG 65.21 -0.23 UnderArmour A UAA 20.65 -1.49 SpringBkPharm SBPH 16.89 4.2
Agrium AGU 90.41 -0.73
AirProducts APD 142.13 -0.48
t ChinaMobile CHL 51.34 -0.72 HP
s HSBC
HPQ 17.19
HSBC 47.01
-0.46
-0.14
PLDT
PNC Fin
PHI 34.24 -0.33
PNC 126.01 -0.07
UnderArmour C UA 19.10
Unilever UN 54.66
-1.30
-0.19
The following explanations apply to the New York Stock Exchange, NYSE Arca, NYSE NYSE MKT highs - 0 TimberlandBncp TSBK
TwoRiverBancorp TRCB
26.65
18.90
1.4
0.5
AlaskaAir ALK 91.40 0.12 ChinaPetrol SNP 77.65 -0.62 MKT and Nasdaq Stock Market stocks that hit a new 52-week intraday high or low in
ChinaSoAirlines ZNH 39.82 -0.99 Halliburton HAL 42.02 -0.84 POSCO PKX 64.12 -0.30 Unilever UL 53.47 -0.27 the latest session. % CHG-Daily percentage change from the previous trading session. Verastem VSTM 3.85 42.0
Albemarle ALB 108.05 0.03
Alcoa AA 33.89 0.12 ChinaTelecom CHA 46.62 -0.87 Hanesbrands HBI 22.53 -0.65 PPG Ind PPG 110.05 -0.63 UnionPacific UNP 107.76 -0.49 NYSE MKT lows - 3 ZionOil&Gas ZN 4.45 9.3
ChinaUnicom CHU 13.53 -0.44 HarleyDavidson HOG 52.84 -1.09 PPL PPL 38.03 -0.26 UnitedContinental UAL 77.71 1.17 SuperiorDrilling SDPI 0.59 -3.9
Thursday, July 6, 2017
AlexandriaRealEst ARE 118.15 -2.20
Alibaba BABA 142.20 -2.67 Chipotle CMG 412.76 -0.49 Harris HRS 110.28 -0.55 PVH PVH 110.88 -2.57 UnitedMicro UMC 2.38 -0.02
52-Wk % 52-Wk % 52-Wk %
TakungArt TKAT 4.52 -2.0 Nasdaq lows - 40
Chubb CB 145.44 -0.53 HartfordFinl HIG 52.56 -0.15 PackagingCpAm PKG 110.84 -1.05 UPS B UPS 109.24 -1.28 UniqueFabricating UFAB 8.84 -0.2 ALJ Regional
Alleghany Y 588.60 -7.75 Stock Sym Hi/Lo Chg Stock Sym Hi/Lo Chg Stock Sym Hi/Lo Chg ALJJ 2.99 -1.9
ChunghwaTelecom CHT 35.07 -0.26 HealthcareAmer HTA 30.00 -1.15 PaloAltoNtwks PANW 132.64 -1.19 UnitedRentals URI 112.35 -1.92 ArcadiaBiosci RKDA 0.40 -8.9
Allegion ALLE 80.66 -1.48
Church&Dwight CHD 51.95 0.17 Heico HEI 74.09 -1.55 ParkHotels PK 26.73 -0.29 US Bancorp USB 52.18 -0.48 AMC Ent AMC 21.45 -3.6 SeaDrill SDRL 0.34 -8.3 Nasdaq highs - 41 CaseysGenStores CASY 103.44 -1.3
Allergan AGN 241.55 -2.74
AllianceData ADS 254.33 -4.95 Cigna CI 167.94 -1.22 s Heico A HEI/A 64.40 -1.30 ParkerHannifin PH 159.45 -1.69
ParsleyEnergy PE 26.87 -0.74
US Steel X 21.99 -0.24 NYSE highs - 33 AZZ
AlticeUSA
AZZ
ATUS
50.50
30.66
-7.1
2.2
Smucker SJM 115.07 -1.0
AVEO Pharma AVEO 2.55 7.0
Celsion CLSN 1.90 -20.7
CimarexEnergy XEC 92.08 -2.17 Helmerich&Payne HP 53.47 -0.87 UnitedTech UTX 121.89 -0.90 SouthwestEnerPfB SWNC 13.58 -1.3 ChinaFinance JRJC 1.60 -4.8
AllianceBernstein AB 23.55 -0.10 AberdeenGrChinaFd GCH 11.59 -1.2 AutoZone AZO 503.00 -1.8 AdvisoryBoard ABCO 59.50 3.7
Citigroup C 67.63 -0.82 Herbalife HLF 71.88 -0.03 Pearson PSO 8.86 -0.02 UnitedHealth UNH 186.94 -1.31 AllianzGIConv&Incm NCV 7.09 -0.4 TahoeResources TAHO 5.12 -33.0 DawsonGeophys DWSN 3.73 -4.3
AlliantEnergy LNT 39.67 -0.09 B&G Foods BGS 34.92 0.1 AgroFresh AGFS 7.98 4.5
Hershey HSY 106.43 0.12 PembinaPipeline PBA 32.99 -0.07 UniversalHealthB UHS 119.74 -2.58 AlumofChina ACH 13.86 -0.9 Team TISI 22.85 -2.3 ENDRA LifeSci NDRA 3.59 -0.3
AllisonTransm ALSN 37.48 -0.17 CitizensFin CFG 36.60 -0.28 BakerHughes BHGE 36.52 -0.6 AmericanAirlines AAL 52.58 1.5
Hess HES 42.83 -0.53 Pentair PNR 65.61 -1.08 UnumGroup UNM 47.32 0.21 ArlingtonAsstNt23 AIW 25.45 0.7 Verizon VZ 43.52 -1.3 Egalet EGLT 1.54 -35.8
Clorox CLX 133.77 -0.33 BlueApron APRN 7.95 -8.8 AmicusTherap FOLD 10.77 2.4
Allstate ALL 88.72 -0.09 HewlettPackard HPE 16.48 -0.46 PepsiCo PEP 115.13 -0.17 AssuredGuaranty AGO 43.18 0.5 VoyaNaturalRscs IRR 5.70 ... EssaPharma EPIX 0.48 -4.0
Coach COH 46.68 -0.42 VEREIT VER 8.11 -0.09 CaliforniaRscs CRC 7.33 -8.8 Baozun BZUN 25.42 0.9
AllyFinancial ALLY 20.79 -0.52 PerkinElmer PKI 67.53 -0.72 AtHomeGroup HOME 26.40 2.6 ExtractionOil XOG 12.46 -4.7
Coca-Cola KO 44.40 -0.42 Hilton HLT 61.08 -0.43 VF VFC 56.13 -1.20 CampbellSoup CPB 51.62 -0.6 WeatherfordIntl WFT 3.56 -9.1 BassettFurniture BSET 40.55 -0.4
t AlticeUSA ATUS 31.88 0.68 Perrigo PRGO 72.32 -2.38 Atento ATTO 11.40 0.4 FT CA MuniHi FCAL 49.81 -0.5
Coca-Cola Euro CCE 40.29 -0.71 HomeDepot HD 152.05 -0.64 Visa V 93.25 -0.76 Cato CATO 16.45 -7.4 WesternUnion WU 18.42 -1.2 BeiGene BGNE 68.67 26.8
FT USEquityDiv RNDV 19.69 -1.1
Altria MO 74.32 -0.29 PetroChina PTR 61.65 -0.65 BancodeChile BCH 81.19 0.2
Coca-Cola Femsa KOF 83.97 HondaMotor HMC 27.32 -0.46 VailResorts MTN 199.09 -0.77 ChinaDistanceEd DL 8.13 -3.8 Zoe'sKitchen ZOES 11.13 -4.8 CalitheraBiosci CALA 18.70 1.7
s AlumofChina ACH 13.32 -0.12 -1.54 CanPacRlwy CP 163.51 -0.2 Fred's FRED 6.37 -13.2
Honeywell HON 133.37 -0.43 PetroleoBrasil PBR 7.85 -0.10 Vale VALE 8.76 0.02 ChinaMobile CHL 51.30 -1.4 CoriumIntl CORI 9.10 11.9
FrontierComm FTR 1.08 -5.2
Colgate-Palmolive CL 73.45 -0.31 ColonyNrthStPfE CLNSpE 27.52 0.4
Ambev
Ameren
ABEV 5.34 -0.15
AEE 53.75 -0.11 ColonyNorthStar CLNS 14.05 -0.22 HormelFoods HRL 33.15 -0.58 PetroleoBrasilA PBR/A 7.39 -0.03
Pfizer PFE 33.22 -0.42
ValeantPharm VRX 16.60 -0.54 Cummins CMI 165.95 0.1 CobaltIntlEner CIE
CrescentPoint CPG
2.18
7.03
-5.5
...
NYSE Arca highs - 12 DasekeWt
DovaPharm
DSKEW
DOVA
1.45 1.4
23.71 2.7
FrontierCommPfA FTRPR 27.79 -3.0
Comerica CMA 74.13 -0.30 DR Horton DHI 34.49 -0.14 ValeroEnergy VLO 66.46 -0.61 DeltaAir DAL 54.84 0.1 iKangHealthcare KANG 11.88 -2.7
AmericaMovil AMX 15.89 -0.16 PhilipMorris PM 118.35 -0.19 CubeSmart CUBE 23.24 -3.1 DeepValueETF DVP 28.99 -0.7 EastWestBancorp EWBC 60.42 -0.8
SABESP SBS 9.58 -0.09 HostHotels HST 18.30 -0.41 Vantiv VNTV 59.93 -1.09 FPL Group Pfd NEEpC 27.29 0.4 InglesMarkets IMKTA 30.45 -3.9
AmericaMovil A AMOV 15.68 -0.19 Phillips66 PSX 81.89 -0.44 HSBC HSBC 47.34 -0.3 DieboldNixdorf DBD 20.10 -5.6 DirexEuroFinBll2 EUFL 46.17 1.5 FibroGen FGEN 34.25 -3.5 Inpixon INPX 0.58 -5.5
ConagraBrands CAG 34.13 -0.78 HuanengPower HNP 27.58 ... VarianMed VAR 103.13 -0.59
AmCampus ACC 45.67 -1.42 PinnacleFoods PF 59.14 -0.46 Heico A HEI/A 65.95 -2.0 EXCO Res XCO 2.20 -5.9 DirexTransportBl3 TPOR 29.50 -0.7 FirstGuarBcshs FGBI 27.85 0.3 KonaGrill KONA 3.15 -3.0
ConchoRscs CXO 121.77 -0.42 Hubbell HUBB 112.87 -0.87 Vedanta VEDL 16.03 0.03
AEP AEP 69.02 0.20 ING Groep ING 17.93 1.1 EastmanKodak KODK 8.55 -3.3 FlexShCurrHdgEM TLEH 28.47 -0.1 GP Invts Wt GPIAW 0.86 ... MonroMuffler MNRO 39.92 -3.9
Humana HUM 238.46 -3.86 PinnacleWest PNW 84.36 -0.28 VeevaSystems VEEV 60.32 -0.61
AmericanExpress AXP 83.74 -1.15 ConocoPhillips COP 43.31 -0.85 Interpublic IPG 25.37 -1.1 FdnBuilding FBM 11.94 -3.6 GlbX MSCIGreece GREK 10.52 1.1 GreenBancorp GNBC 20.55 0.2 NIC EGOV 18.00 -0.3
HuntingtonIngalls HII 191.38 -1.59 PioneerNatRscs PXD 156.99 -2.42 Ventas VTR 67.61 -1.57
AmericanFin AFG 100.74 -0.95 ConEd ED 80.39 -0.08 JPMorganChase JPM 94.51 -0.3 GeneralElec GE 26.10 -3.8 iShCurrHdgIntlHY HHYX 27.25 0.7 HamiltonLane HLNE 24.00 -2.3 NabrivaTherap NBRV 10.25 -1.4
Huntsman HUN 26.00 0.06 PlainsAllAmPipe PAA 26.13 -0.25 t Verizon VZ 43.52 -0.55 JPMorganWt JPM/WS 53.05 -0.6 HudsonTech HDSN 9.19 0.2
AmerHomes4Rent AMH 22.29 -0.18 ConstBrands A STZ 193.76 -0.16 GeneralMills GIS 53.76 -0.9 iShGloblFinancials IXG 64.18 -0.5 Neothetics NEOT 0.50 8.5
HyattHotels H 55.28 -0.24 PlainsGP PAGP 26.25 0.10 Vipshop VIPS 10.05 -0.27 MFS SpcVal MFV 6.48 0.6 Immunogen IMGN 8.04 2.5
AIG AIG 63.08 0.30 ContinentalRscs CLR 30.61 -0.69 GenuineParts GPC 86.21 -2.7 PwrShVarRtPfd VRP 26.28 ... Oncobiologics ONS 0.95 13.0
ICICI Bank IBN 8.97 -0.10 PolarisIndustries PII 87.30 -2.96 VistraEnergy VST 16.47 -0.27 MVC Capital MVC 10.12 1.7 HarteHanks HHS 0.93 -4.0 iShMSCIEuropeFinls EUFN 22.54 0.7
AmerTowerREIT AMT 131.54 -0.71 Cooper COO 236.19 -1.84 RenaissanceIntlIPO IPOS 21.31 1.9 PhotoMedex PHMD 0.95 -22.1
Corning GLW 29.81 s ING Groep ING 17.79 0.19 Potash POT 16.24 -0.15 VMware VMW 87.51 0.26 Manpower MAN 113.97 -1.9 HugotonRoyalty HGT 1.55 2.8 KeryxBiopharm KERX 8.21 0.8 Presbia LENS 2.05 -7.6
AmerWaterWorks AWK 77.60 -0.31 -0.68 SPDRS&PHlthCareEqp XHE 61.98 -1.7
Invesco IVZ 35.16 -0.34 Praxair PX 132.43 -0.23 VornadoRealty VNO 92.38 -1.72 MauiLand MLP 22.05 ... Imax IMAX 21.03 -2.3 LakelandInd LAKE 15.50 0.7
Coty COTY 18.79 -0.07 Radisys RSYS 3.50 -2.2
Amerigas APU 46.20 -0.03 PrincipalFin PFG 64.12 -0.13 NoahHoldings NOAH 30.18 1.7 U.S.GlobalJetsETF JETS 32.19 0.3 LNTH 18.80 ...
Credicorp BAP 180.96 -1.41 IDEX IEX 112.67 -0.81 VoyaFinancial VOYA 37.50 -0.07 JonesEnergy JONE 1.35 -6.9 Lantheus Rambus RMBS 11.30 -0.9
Ameriprise AMP 129.15 -1.98 Procter&Gamble PG 87.37 -0.30 NortelInversora NTL 34.78 2.0 VirtusEnhShrtUS VESH 25.24 0.8 MEI Pharma MEIP 2.92 12.3
CreditSuisse CS 15.01 -0.03 IllinoisToolWks ITW 144.35 -1.13 VulcanMaterials VMC 129.45 -0.55 JumeiIntl JMEI 2.08 -1.9 RandLogistics RLOG 0.29 -29.3
AmerisourceBrgn ABC 92.51 -2.71 PCM Fund PCM 11.42 -0.4 ModernMediaWt MMDMW 0.49 30.6
Infosys INFY 14.94 ... Progressive PGR 44.43 -0.33 Kellogg K 66.50 -1.7 RedHillBio RDHL 8.20 -1.8
Ametek AME 61.17 -0.05 CrestwoodEquity CEQP 22.95
CrownCastle CCI 98.37
-0.40
-0.64
Ingersoll-Rand IR 92.12 -0.04 Prologis PLD 57.28 -1.25
WABCO WBC 128.22
WEC Energy WEC 60.72
-1.01
-0.11
PutnamPremierIT PPT
RH RH
5.53
69.26
1.1
0.5
LifeStorage LSI 70.93 -3.0 NYSE Arca lows - 8 NortheastBancorp NBN 21.30 ... SapiensInt SPNS 10.97 -2.8
Amphenol APH 72.48 -1.29 Ingredion INGR 116.66 -1.45 PrudentialFin PRU 110.80 0.58 NationalGrid NGG 61.21 -0.8 OmegaFlex OFLX 67.87 2.3 Shineco TYHT 2.22 -7.9
CrownHoldings CCK 59.60 0.04 W.P.Carey WPC 65.79 -0.65 SouthwestAirlines LUV 63.74 0.3 AdvShGartmGoldEuro GEUR 11.40 -0.7
AnadarkoPetrol APC 43.62 -1.19 ICE ICE 65.97 Prudential PUK 46.13 -0.16 NewYorkREIT NYRT 8.53 ... Otonomy OTIC 19.45 -3.4 SynthesisEnSys SYMX 0.53 -4.1
-0.21 Wabtec WAB 90.59 -1.15 Startek SRT 12.95 4.6 ClearSharesOCIO OCIO 24.80 -0.5
AB InBev BUD 110.37 0.37 Cullen/Frost CFR 95.19 -0.58 NewfieldExpln NFX 26.15 -4.7 PacificSpecialRt PAACR 0.56 -13.3 TOP Ships TOPS 0.30 -11.7
InterContinentl IHG 54.96 -0.38 PublicServiceEnt PEG 42.01 -0.31 Wal-Mart WMT 75.47 0.15 TPGPace TPGH/U 10.42 0.1 DirexFinlBear1X FAZZ 17.21 -5.8
AnnalyCap NLY 12.21 -0.07 s Cummins CMI 164.21 0.11 TimeWarner TWX 102.45 0.3 NobleEnergy NBL 27.10 -3.2 PierisPharm PIRS 5.84 3.7 T2Biosystems TTOO 3.00 -4.1
IBM IBM 152.36 -1.31 PublicStorage PSA 205.36 -2.70 WasteConnections WCN 64.21 -0.28 FlexiBx3YDurTIPS TDTT 24.47 ...
AnteroMidstream AM 33.09 -0.45 DTE Energy DTE 105.17 -0.27
PulteGroup PHM 24.41 -0.23 TwoHarborsPfdA TWOpA 28.06 ... ObsidianEnergy OBE 1.14 -1.7 RadaElectronic RADA 2.14 8.6 Tintri TNTR 6.80 -1.5
IntlFlavors IFF 132.16 -2.05 WasteMgt WM 73.39 -0.33 OOMA 7.55 -4.4 GSAccessInvGradeCorpBd GIGB 49.57 -0.2 Renasant RNST 45.32 -1.9 TractorSupply TSCO 51.43 -2.8
AnteroResources AR 20.84 -0.15 DXC Tech DXC 76.51 0.27
QuestDiag DGX 109.01 -1.33
Ooma
IntlPaper IP 56.13 -0.62
Anthem ANTM 190.28 -0.97 Danaher
Darden
DHR 82.93
DRI 89.68
-1.16
0.18
s Interpublic IPG 24.83 -0.28 QuintilesIMS Q 87.86 -1.30
Waters
Watsco
WAT 182.24
WSO 154.65
-1.54
-1.05
NYSE lows - 49 Regal
RiteAid
RGC
RAD
19.25
2.33
-0.7
-4.8
PwrShDynFood&Bev PBJ
ProShUltMSCI Mex SMK
31.01
17.28
-0.8
-1.3
SI Financial
SLM Pfd B
SIFI
SLMBP
16.45 ...
74.00 1.1
21 Vianet
Viacom B
VNET
VIAB
4.60 -5.7
32.68 0.2
Aon AON 133.39 0.42 InvitationHomes INVH 21.29 -0.40 RELX RENX 20.33 -0.22 AES AES 10.60 -1.7
DaVita DVA 63.05 -1.05 Wayfair W 74.24 -1.24 Schlumberger SLB 65.02 -0.9 SPDRBloomBarc0-5Y SIPE 19.46 0.2 SelectBancorp SLCT 12.61 3.6 VistaGenTherap VTGN 1.64 1.7
Apache APA 45.77 -1.88 IronMountain IRM 34.07 -0.45 RELX RELX 21.53 -0.24
Deere DE 125.09 -0.51 WellCareHealth WCG 179.77 -2.59
ApartmtInv AIV 42.76 -1.00 IsraelChemicals ICL 4.57 -0.03 RPM RPM 54.20 -0.25
DellTechnologies DVMT 60.84 0.04 WellsFargo WFC 55.56 -0.22
ApolloGlobalMgmt APO 26.70 0.34 ItauUnibanco ITUB 11.02 -0.18 RalphLauren RL 70.53 -2.57
DelphiAutomotive DLPH 86.73 -1.17 Welltower HCN 73.07 -2.02
Aptargroup ATR 87.31 0.02 s JPMorganChase JPM 93.38 -0.30 RangeResources RRC 21.69 -0.48
AquaAmerica WTR 32.62 -0.25
Aramark ARMK 39.88 -1.05
s DeltaAir DAL 54.37
DeutscheBank DB 18.89
0.04
0.26
JacobsEngineering JEC 54.17 -0.69 RaymondJames RJF 81.01 -0.52
Raytheon RTN 163.56 -1.25
WestPharmSvcs WST 93.73
WestarEnergy WR 52.68
-0.56
-0.13 Dividend Changes Company Symbol
Amount
Yld % New/Old Frq
Payable /
Record
JamesHardie JHX 15.05 -0.28 WesternGasEquity WGP 42.94 -0.15
ArcelorMittal MT 23.08 -0.04 DevonEnergy DVN 30.18 -0.92 RealtyIncome O
ArcherDaniels ADM 41.10 -0.70 Diageo DEO 118.41 -0.92
JanusHenderson JHG 31.60 -1.05
RedHat
54.13 -1.08
RHT 94.91 -0.63
WesternGasPtrs WES 56.40 0.35 Dividend announcements from July 6. Funds and investment companies
J&J JNJ 132.52 -1.12 t WesternUnion WU 18.47 -0.22
Arconic ARNC 22.92 -0.07 DigitalRealty DLR 109.36 -1.64 RegencyCtrs REG 61.71 -0.94
JohnsonControls JCI 43.05 -0.52 WestlakeChem WLK 65.85 -0.15 Amount Payable / Credit Suisse S&P MLP Idx MLPO 5.9 .2348 Q Jul24 /Jul14
AristaNetworks ANET 145.43 -3.19 DiscoverFinSvcs DFS 61.20 -0.31 RegionsFin RF 14.71 -0.14
JonesLangLaSalle JLL 122.95 -2.85 WestpacBanking WBK 23.29 -0.37 Company Symbol Yld % New/Old Frq Record
ArrowElec ARW 77.50 -1.43 Disney DIS 103.35 -1.50
JuniperNetworks JNPR 27.79 -0.39 ReinsuranceGrp RGA 129.51 -1.80 CS X-Links Multi-Asset Hi MLTI 11.7 .2809 M Jul24 /Jul14
DollarGeneral DG 70.03 -1.21 WestRock WRK 56.41 -0.71
Assurant AIZ 104.15 -0.40 KAR Auction KAR 40.83 -0.89 RenaissanceRe RNR 140.16 -0.10 Weyerhaeuser WY 32.06 -1.15 Increased C-Tracks ETN Miller/How MLPE 5.4 .3264 Q Jul12 /Jul11
AstraZeneca AZN 33.64 -0.52 DominionEner D 75.72 -0.08 RepublicServices RSG 63.58 -0.39
KB Fin KB 49.28 -0.79 WheatonPrecMetals WPM 19.27 -0.17 Bank of Am Dep ser 4 BMLpJ 4.2 .2556 /.24722 Q Aug29 /Aug15 PennantPark Floatg Rt Cap PFLT 8.0 .095 M Aug01 /Jul20
Athene ATH 49.23 -0.43 Domino's DPZ 208.84 0.81 ResMed RMD 76.04 -1.04
KKR KKR 18.32 -0.11 Whirlpool WHR 189.70 -3.51
AtmosEnergy ATO 82.71 0.03 Donaldson DCI 45.32 -0.56
KT KT 16.50 -0.61 RestaurantBrands QSR 61.27 -0.83 Bank of America Dep pfd 2 BMLpH 3.4 .1917 /.18542 Q Aug29 /Aug15
Autoliv ALV 112.91 -0.49 DouglasEmmett DEI 37.68 -0.70 ReynoldsAmer RAI 64.50 -0.37
Williams WMB 30.47 0.12
Bank of America Dep pfd E BACpE 4.2 .2556 /.24722 Q Aug15 /Jul31 Foreign
KSCitySouthern KSU 103.11 -1.17 WilliamsPartners WPZ 40.14 -0.02
t AutoZone AZO 507.48 -9.35 Dover DOV 82.21 0.59 t Kellogg K 66.55 -1.15 RioTinto RIO 43.14 -0.15 Bank of America Dep pfd L BMLpL 4.3 .2556 /.24722 Q Aug21 /Aug01 CS XLinks Month Pay 2xLev REML 45.3 1.2235 M Jul24 /Jul14
DowChemical DOW 63.56 0.14 Wipro WIT 5.18 -0.03
Avalonbay AVB 188.19 -5.55 KeyCorp KEY 19.00 -0.20 RobertHalf RHI 47.97 -0.79 STRATS Tr Allstate 2006-3 GJT 2.4 .0378 /.037 M Aug01 /Jul31 Dynagas LNG Partners DLNG 10.9 .4225 Q Jul18 /Jul11
DrPepperSnap DPS 89.07 -0.70 WooriBank WF 48.43 0.18
Avangrid AGR 43.48 ... KeysightTechs KEYS 38.69 -0.46 Rockwell ROK 162.79 -0.70 Tallgrass Energy GP Cl A TEGP 5.4 .3425 /.2875 Q Aug14 /Jul28
DrReddy'sLab RDY 41.01 -0.15 Workday WDAY 95.64 -1.31 Luxfer Holdings ADR LXFR 3.9 .125 Aug02 /Jul17
AveryDennison AVY 89.18 0.36 KilroyRealty KRC 73.05 -1.99 RockwellCollins COL 105.40 -0.69
AxaltaCoating AXTA 32.00 -0.07 DuPont DD 81.59 0.37 Wyndham WYN 100.10 -1.19 Tallgrass Energy Partners TEP 7.3 .925 /.835 Q Aug14 /Jul28
KimberlyClark KMB 126.38 -2.28 RogersComm B RCI 47.12 0.14 XPO Logistics XPO 63.38 -0.69
BB&T BBT 45.53 -0.61 DukeEnergy DUK 83.21 -0.08 Rollins ROL 40.28 -0.59
BCE BCE 44.99 -0.17 DukeRealty DRE 27.33 -0.29
KimcoRealty KIM 17.96 0.11 XcelEnergy XEL 45.57 0.04 Initial KEY: A: annual; M: monthly; Q: quarterly; r: revised; SA: semiannual;
KinderMorgan KMI 19.13 -0.18 RoperTech ROP 233.15 -2.12 Xerox XRX 28.35 -0.10
BHPBilliton BHP 36.95 0.55 ENI E 29.70 -0.11 KinrossGold KGC 3.91 RoyalBkCanada RY 73.32 0.09 SCE Tr VI 5% Pfd. L SCEpL 5.0 .27431 Sep15 /Sep14 S2:1: stock split and ratio; SO: spin-off.
-0.05 Xylem XYL 54.38 -0.56
BHPBilliton BBL 32.09 0.58 EOG Rscs EOG 88.63 -1.67 Kohl's KSS 38.29 -1.02 RoyalBkScotland RBS 6.77 0.09
EQT EQT 59.00 -0.79 YPF YPF 22.05 -0.17
BP BP 34.44 0.02 KoninklijkePhil PHG 35.47 -0.38 RoyalCaribbean RCL 108.57 -2.07
EQT Midstream EQM 75.88 -0.66 YumBrands YUM 72.65 -0.43
BRF BRFS 11.47 -0.40
Borrowing Benchmarks | WSJ.com/bonds
KoreaElcPwr KEP 18.13 -0.42 RoyalDutchA RDS/A 53.10 0.19 YumChina YUMC 34.95 -5.18
BT Group BT 18.83 -0.13 EastmanChem EMN 83.60 0.04 Kroger KR 23.13 -0.10 RoyalDutchB RDS/B 54.35 0.02
Eaton ETN 78.55 -0.08 ZTO Express ZTO 14.69 0.02
Ball BLL 42.02 -0.56 Kyocera KYO 56.98 -0.61 SAP SAP 102.67 -0.95
EatonVance EV 46.84 -0.88 ZayoGroup ZAYO 30.06 -0.70
BancoBilbaoViz BBVA 8.60 0.05
s BancodeChile BCH 80.19 0.19 Ecolab
Ecopetrol
ECL 132.18
EC 8.90
-1.09
0.06
LATAMAirlines LTM 11.49
L Brands LB 46.49
-0.15
-7.62
S&P Global SPGI 146.35 -1.18
SINOPECShanghai SHI 54.24 0.95
ZimmerBiomet ZBH 125.63
Zoetis ZTS 61.79
-2.14
-0.76
Money Rates July 6, 2017
BancoMacro BMA 90.19 -1.44 LG Display LPL 16.10 -0.77 SK Telecom SKM 24.82 -0.79
EdisonInt EIX 76.67 -0.22
BcoSantChile BSAC 25.49 -0.08
BancoSantander SAN 6.83 0.04 EdwardsLife EW 117.08 -2.50
LINE LN 34.17 0.02 SLGreenRealty SLG 102.75 -3.17 NASDAQ Key annual interest rates paid to borrow or lend money in U.S. and international markets. Rates below are a
L3 Tech LLL 169.06 -2.27 Salesforce.com CRM 86.85 -0.65
BanColombia CIB 44.17 -0.32 EmersonElectric EMR 59.18 -0.14 LabCpAm LH 150.99 -2.34 Sanofi SNY 47.22 -0.61 AGNC Invt AGNC 21.62 -0.08 guide to general levels but dont always represent actual transactions.
BankofAmerica BAC 24.71 -0.21 EnbridgeEnPtrs EEP 15.91 -0.06 LambWeston LW 42.90 -0.37 Sasol SSL 27.66 -0.14 Ansys ANSS 120.94 0.07
BankofMontreal BMO 73.83 -0.03 Enbridge ENB 39.68 0.10 LasVegasSands LVS 61.55 -1.22 Scana SCG 66.40 -0.42 ASML ASML 131.22 -0.26 Week 52-WEEK Week 52-WEEK
BankNY Mellon BK 51.23 -1.04 Encana ECA 8.52 -0.06 Lazard LAZ 46.55 -0.26 t Schlumberger SLB 65.13 -0.61 Abiomed ABMD 139.96 -2.42 Inflation Latest ago High Low Latest ago High Low
BkNovaScotia BNS 60.44 -0.25 EnelAmericas ENIA 9.91 0.16 Lear LEA 141.14 -2.17 SchwabC SCHW 43.48 -0.20 ActivisionBliz ATVI 56.62 -0.54 May index Chg From (%)
Barclays BCS 10.79 0.14 EnelGenChile EOCC 23.02 -0.10 Leggett&Platt LEG 52.15 -0.56 SealedAir SEE 44.72 -0.31 AdobeSystems ADBE 140.75 -0.46 26 weeks 1.130 1.110 1.130 0.340
Bard CR BCR 317.05 -0.64 EnergyTrfrEquity ETE 17.56 -0.09 Leidos LDOS 51.19 -1.17 SempraEnergy SRE 110.92 -0.22 AkamaiTech AKAM 49.36 -1.59
level April '17 May '16 Euro interbank offered rate (Euribor)
BarrickGold ABX 15.66 -0.28 EnergyTransfer ETP 20.33 -0.11 Lennar A LEN 51.87 -0.53 SensataTech ST 42.97 -0.52 AlexionPharm ALXN 121.09 -3.96 Secondary market One month -0.373 -0.373 -0.366 -0.375
BaxterIntl BAX 60.16 -0.55 EnLinkMidPtrs ENLK 16.75 -0.11 Lennar B LEN/B 43.79 -0.59 ServiceCorp SCI 32.99 -0.34 AlignTech ALGN 149.74 -2.20 U.S. consumer price index
Entergy ETR 75.52 -0.44 Three month -0.330 -0.331 -0.291 -0.332
BectonDickinson BDX 195.34 -1.64 LennoxIntl LII 183.91 -1.91 ServiceNow NOW 104.54 -0.57 Alkermes ALKS 59.47 -0.98 All items 244.733 0.09 1.9 Fannie Mae
Berkley WRB 69.21 -0.10 EnterpriseProd EPD 26.90 -0.10 LeucadiaNatl LUK 26.62 -0.12 ShawComm B SJR 21.43 -0.03 AlnylamPharm ALNY 82.97 -2.74 Core 251.835 0.08 1.7 Six month -0.273 -0.270 -0.183 -0.274
BerkHathwy A BRK/A 255550-1950.00 EnvisionHlthcr EVHC 60.58 -1.71 SherwinWilliams SHW 349.83 -1.25 Alphabet A GOOGL 927.69 -4.57 30-year mortgage yields
Level3Comm LVLT 59.34 0.19 One year -0.161 -0.156 -0.045 -0.163
BerkHathwy B BRK/B 170.20 -1.65 Equifax EFX 137.22 -2.33 LibertyProperty LPT 40.36 -0.70 ShinhanFin SHG 42.50 -0.83 Alphabet C GOOG 906.69 -5.02 30 days 3.625 3.523 3.865 2.808
BerryGlobal BERY 56.89 0.29 EquityLife ELS 85.25 -1.02 EliLilly LLY 81.60 -1.10 Shopify SHOP 86.21 -1.90 Altaba AABA 54.53 -1.09
International rates
EquityResdntl EQR 64.89 -1.89
60 days 3.652 3.554 3.899 2.837 Value 52-Week
BestBuy BBY 57.42 -0.73 LincolnNational LNC 69.36 0.69 SimonProperty SPG 155.78 -2.45 Amazon.com AMZN 965.14 -6.26
Bio-RadLab A BIO 225.49 -6.20 EssexProp ESS 254.03 -5.69 Amdocs DOX 63.92 -0.75 Week 52-Week Latest Traded High Low
LionsGate A LGF/A 27.45 -0.05 SmithAO AOS 56.58 -0.62
BlackKnightFin BKFS 40.70 -0.30 EsteeLauder EL 94.84 -0.88 LionsGate B LGF/B 25.77 -0.14 Smith&Nephew SNN 34.04 -0.38 Amerco UHAL 355.75 0.13 Latest ago High Low Other short-term rates
BlackRock BLK 425.19 -3.58 EverestRe RE 261.32 -1.43 LiveNationEnt LYV 34.01 -0.45 t Smucker SJM 115.11 -1.19 s AmericanAirlines AAL 52.05 0.79 DTCC GCF Repo Index
BlackstoneGroup BX 32.88 -0.15 EversourceEner ES 59.99 -0.08 LloydsBanking LYG 3.51 Snap SNAP 17.31 -0.01 Amgen AMGN 171.72 -2.54 Prime rates Week 52-Week
Exelon EXC 35.68 0.16
0.03
Latest ago high low
Treasury 1.095 43.000 1.366 0.244
BlockHR HRB 31.28 0.24 LockheedMartin LMT 280.96 -1.44 SnapOn SNA 154.32 -2.64 AnalogDevices ADI 77.33 -0.41
BoardwalkPipe BWP 17.71 -0.24 ExtraSpaceSt EXR 75.91 -1.48 Loews L 46.78 -0.23 SOQUIMICH SQM 34.21 -0.35 Apple AAPL 142.73 -1.36 U.S. 4.25 4.25 4.25 3.50 MBS 1.149 105.350 1.506 0.257
Boeing BA 201.48 -0.33 ExxonMobil XOM 80.12 -0.73 Lowe's LOW 76.59 -0.78 Sony SNE 37.54 -0.39 AppliedMaterials AMAT 42.11 -0.01 Canada 2.70 2.70 2.70 2.70 Call money Open Implied
BorgWarner BWA 43.00 -0.18 FMC FMC 73.60 0.05 LyondellBasell LYB 83.05 -0.31 Southern SO 47.40 -0.02 ArchCapital ACGL 94.21 -1.00 Japan 1.475 1.475 1.475 1.475
BostonProperties BXP 119.97 -3.02 FactSet FDS 160.58 -4.71 M&T Bank MTB 163.59 -0.85 SoCopper SCCO 34.75 -0.50 AthenaHealth ATHN 138.22 -2.02 3.00 3.00 3.00 2.25 Settle Change Interest Rate
BostonScientific BSX 27.31 -0.32 FederalRealty FRT 125.38 -0.88 MGM Resorts MGM 30.30 -0.68 s SouthwestAirlines LUV 63.36 0.20 Atlassian TEAM 34.62 -0.06 Policy Rates
Braskem BAK 20.51 -0.37 FedEx FDX 215.03 -3.28 MPLX MPLX 33.28 -0.52 SpectraEnerPtrs SEP 43.77 0.18 Autodesk ADSK 102.05 -0.55 Commercial paper (AA financial) DTCC GCF Repo Index Futures
Bristol-Myers BMY 55.28 -1.07 FiatChrysler FCAU 11.05 0.09 ADP Euro zone 0.00 0.00 0.00 0.00
MSCI MSCI 102.28 -0.80 SpectrumBrands SPB 123.49 -0.62 ADP 103.44 -0.63 90 days 1.20 1.26 1.26 0.56 Treasury Jly 98.845 0.005 6100 1.155
BroadridgeFinl BR 74.49 -1.13 FibriaCelulose FBR 9.93 -0.14 Macerich MAC 56.94 -1.01 SpiritAeroSys SPR 58.28 -0.87 BOK Fin BOKF 84.52 -0.82 Switzerland 0.50 0.50 0.50 0.50
BrookfieldMgt BAM 38.88 -0.14 FidelityNatlFin FNF 44.30 -0.39 MacquarieInfr MIC 77.47 -0.39 Sprint S 8.04 -0.19 Baidu BIDU 181.79 -2.04 Britain 0.25 0.25 0.50 0.25 Libor Treasury Aug 98.860 0.005 1092 1.140
BrookfieldInfr BIP 40.66 -0.77 FNFV Group FNFV 15.85 -0.15 Macy's M 22.85 -0.67 Square SQ 23.22 -0.54 BankofOzarks OZRK 47.29 -0.81 1.50 1.50 1.75 1.50
FidelityNtlInfo FIS 85.55 -0.56
Australia One month 1.22444 1.22722 1.22722 0.47430 Treasury Sep 98.820 0.005 623 1.180
Brown&Brown BRO 42.86 -0.31 MagellanMid MMP 69.99 0.44 StanleyBlackDck SWK 142.29 -0.73 Biogen BIIB 271.96 -5.75
Brown-Forman A BF/A 48.91 -0.31 58.com WUBA 44.02 0.56 MagnaIntl MGA 45.97 -0.25 StarwoodProp STWD 22.32 -0.23 BioMarinPharm BMRN 90.08 -1.93
Overnight repurchase Three month 1.30411 1.29861 1.30411 0.66460
Brown-Forman B BF/B 48.33 0.13 FirstData FDC 17.93 -0.47 s Manpower MAN 111.71 -2.12 StateStreet STT 90.61 -0.92 Bioverativ BIVV 61.22 -0.71 Six month 1.46544 1.44822 1.46544 0.93490 Weekly survey
Brunswick BC 61.79 -0.75 FirstRepBank FRC 102.00 -0.54 ManulifeFin MFC 19.14 0.22 Statoil STO 16.36 ... Broadcom AVGO 235.04 3.43 U.S. 1.13 1.18 1.38 0.15
FirstEnergy FE 29.31 0.10
One year 1.75733 1.73956 1.82761 1.24650 Latest Week ago Year ago
BuckeyePtrs BPL 64.06 -0.55 MarathonOil MRO 11.59 -0.15 Steris STE 80.83 -1.56 CA CA 33.90 -0.58
Bunge BG 75.41 -1.68 FleetCorTech FLT 144.16 -1.22 MarathonPetrol MPC 52.85 -0.05 STMicroelec STM 14.75 0.07 CBOE Holdings CBOE 92.18 -0.85 U.S. government rates Euro Libor
BurlingtonStores BURL 88.22 -0.68 Flowserve FLS 46.32 -0.40 Markel MKL 982.79 -0.49 Stryker SYK 139.27 -0.47 CDK Global CDK 60.91 -1.23 Freddie Mac
CBD Pao CBD 19.24 -0.09 Fluor FLR 45.21 -1.04 Marsh&McLennan MMC 77.67 -0.45 SumitomoMits SMFG 7.86 -0.05 CDW CDW 61.23 -1.76 Discount One month -0.399 -0.401 -0.362 -0.405
FomentoEconMex FMX 96.68 30-year fixed 3.96 3.88 3.41
CBRE Group CBG 36.16 -0.61 -0.23 MartinMarietta MLM 226.00 -0.84 SunCommunities SUI 86.69 -1.23 CH Robinson CHRW 67.68 -1.08
1.75 1.75 1.75 1.00 Three month -0.375 -0.372 -0.301 -0.375
CBS A CBS/A 63.69 -0.91 FootLocker FL 50.08 -0.22 Masco MAS 37.68 -0.47 SunLifeFinancial SLF 35.88 -0.21 CME Group CME 123.69 -2.26
Six month -0.308 -0.300 -0.191 -0.308 15-year fixed 3.22 3.17 2.74
CBS B CBS 62.07 -1.20 FordMotor F 11.18 -0.12 Mastercard MA 120.80 -1.18 SuncorEnergy SU 28.47 -0.33 CSX CSX 54.59 -0.50 3.17 2.68
Federal funds One year -0.190 -0.185 -0.060 -0.190 Five-year ARM 3.21
CF Industries CF 27.58 -1.14 ForestCIty A FCE/A 23.45 -0.66 McCormick MKC 95.74 -0.54 SunTrustBanks STI 57.36 -0.36 CadenceDesign CDNS 33.28 0.01
CGI Group GIB 50.41 -0.19 Fortis FTS 34.68 -0.33 McCormickVtg MKC/V 95.89 -1.34 SynchronyFin SYF 29.38 -0.40 Carlyle CG 18.95 -0.30 Effective rate 1.1800 1.1800 1.2000 0.3300
CIT Group CIT 49.13 -0.91 Fortive FTV 63.33 -0.28 McDonalds MCD 153.09 0.02 Syngenta SYT 92.27 -0.36 Celgene CELG 131.95 -1.25 High 1.3125 1.3125 1.3125 0.5000 Notes on data:
CMS Energy CMS 45.70 -0.11 FortBrandsHome FBHS 65.05 -0.36 McKesson MCK 163.08 -2.19 SynovusFin SNV 44.68 -0.33 Cerner CERN 65.03 -1.55
CNA Fin CNA 48.47 -0.70 Franco-Nevada FNV 70.53 -0.61 Sysco CharterComms CHTR 332.18 -2.93
Low 1.1500 1.1500 1.1600 0.2000 U.S. prime rate is the base rate on corporate loans posted by at least 70% of the 10 largest U.S. banks,
Mednax MD 57.89 -2.45 SYY 49.11 -0.27
Bid 1.1500 1.1600 1.1600 0.2800 and is effective June 15, 2017. Other prime rates arent directly comparable; lending practices vary
CNOOC CEO 109.81 -0.83 FranklinRscs BEN 44.92 -0.32 Medtronic MDT 87.26 -1.64 TAL Education TAL 124.66 0.73 CheckPointSftw CHKP 109.86 -0.48
Offer 1.1800 1.1800 1.1900 0.3000 widely by location; Discount rate is effective June 15, 2017. DTCC GCF Repo Index is Depository
CPFLEnergia CPL 15.98 -0.06 Freeport-McMoRan FCX 11.89 -0.28 Merck MRK 63.10 -1.06 TE Connectivity TEL 78.24 -0.60 ChinaLodging HTHT 77.10 -3.09
Trust & Clearing Corp.'s weighted average for overnight trades in applicable CUSIPs. Value traded is in
CRH CRH 35.66 -0.65 FreseniusMed FMS 47.75 -0.62 MetLife MET 55.88 -0.01 Telus TU 34.60 0.16 CincinnatiFin CINF 72.20 -0.36
billions of U.S. dollars. Federal-funds rates are Tullett Prebon rates as of 5:30 p.m. ET. Futures on the
CVS Health CVS 78.71 -0.95 GGP GGP 22.59 -0.54 MettlerToledo MTD 584.74 -3.26 Ternium TX 28.05 0.22 Cintas CTAS 123.73 -2.39 Treasury bill auction DTCC GCF Repo Index are traded on NYSE Liffe US.
CabotOil COG 24.26 -0.64 Gallagher AJG 57.16 -0.33 MichaelKors KORS 35.49 -0.92 TIM Part TSU 14.89 -0.36 CiscoSystems CSCO 30.72 -0.39
CAE CAE 17.28 -0.17 Gap GPS 22.71 -0.37 MidAmApt MAA 101.55 -3.77 TJX TJX 70.29 -0.89 CitrixSystems CTXS 78.67 -0.73
4 weeks 0.950 0.890 0.950 0.160 Sources: Federal Reserve; Bureau of Labor Statistics; DTCC; SIX Financial Information;
CamdenProperty CPT 85.68 -1.59 Gartner IT 124.36 -0.84 MitsubishiUFJ MTU 6.73 -0.08 TaiwanSemi TSM 34.50 -0.32 Cognex CGNX 85.66 -0.46 13 weeks 1.045 1.000 1.045 0.250 General Electric Capital Corp.; Tullett Prebon Information, Ltd.
t CampbellSoup CPB 51.68 -0.32 Gazit-Globe GZT 9.71 -0.16 MizuhoFin MFG 3.66 -0.05 TargaResources TRGP 44.47 1.05 CognizantTech CTSH 66.29 -0.60

Mutual Funds | WSJ.com/fundresearch Fund

Net YTD
NAV Chg %Ret Fund
Net YTD
NAV Chg %Ret Fund
Net YTD
NAV Chg %Ret Fund
Net YTD
NAV Chg %Ret Fund
Net YTD
NAV Chg %Ret Fund
Net YTD
NAV Chg %Ret Fund
Net YTD
NAV Chg %Ret
Stock 191.96 -2.02 6.4 LowP r 52.98 -0.32 7.1 DispValMCI 22.70 -0.21 5.7 PIMCO Fds Instl Principal Investors STBondAdml 10.45 ... 1.0 TgtRe2050 33.33 -0.24 9.7
Explanatory Notes Data provided by DoubleLine Funds LowPriStkK r 52.95 -0.33 7.1 JPMorgan Funds AllAsset NA ... NA DivIntlInst NA ... NA STIGradeAdml 10.66 -0.01 1.4 TgtRetInc 13.21 -0.04 4.0
TotRetBdI 10.67 -0.01 2.4 MagIn 95.35 -0.88 10.5 MdCpVal L 38.44 -0.38 5.6 HiYld 8.98 -0.02 4.7 Prudential Cl Z & I TotBdAdml 10.74 -0.01 2.1 TotIntBdIxInv 10.80 -0.04 0.1
Top 250 mutual-funds listings for Nasdaq-published share classes with net assets of TotRetBdN 10.66 -0.01 2.1 OTC 101.20 -1.38 21.5 JPMorgan I Class TotRt 10.20 -0.01 3.2 TRBdZ 14.39 -0.03 3.7 TotIntBdIdxAdm 21.60 -0.09 0.2 WellsI 26.16 -0.11 4.1
at least $500 million each. NAV is net asset value. Percentage performance figures Federated Instl Puritn 22.21 -0.15 8.3 CoreBond 11.59 -0.02 2.3 PIMCO Funds A Schwab Funds TotIntlAdmIdx r 27.74 -0.13 14.2 Welltn 40.83 -0.24 5.9
are total returns, assuming reinvestment of all distributions and after subtracting StraValDivIS 6.23 -0.05 7.6 SrsEmrgMktF 18.83 -0.07 19.6 JPMorgan R Class IncomeFd NA ... NA S&P Sel 37.44 -0.34 8.8 TotStAdml 60.20 -0.59 8.3 WndsrII 37.29 -0.37 7.2
annual expenses. Figures dont reflect sales charges (loads) or redemption fees. Fidelity SrsInvGrdF 11.22 -0.02 2.4 CoreBond 11.60 -0.02 2.3 PIMCO Funds D TIAA/CREF Funds TxMIn r 13.18 -0.06 14.0 VANGUARD INDEX FDS
NET CHG is change in NAV from previous trading day. YTD%RET is year-to-date TotalBond 10.63 -0.02 2.4 Lazard Instl
500IdxInst 84.72 -0.77 8.8 IncomeFd NA ... NA EqIdxInst 17.96 -0.18 8.3 ValAdml 37.56 -0.34 4.9 500 222.63 -2.02 8.7
return. 3-YR%RET is trailing three-year return annualized. 500IdxInstPrem 84.72 -0.77 8.8 First Eagle Funds EmgMktEq 17.87 -0.06 12.0 PIMCO Funds Instl IntlEqIdxInst 18.91 -0.08 14.3 WdsrllAdml 66.17 ExtndIstPl 189.41 -2.53 6.2
-0.66 7.2
e-Ex-distribution. f-Previous days quotation. g-Footnotes x and s apply. j-Footnotes e 500IdxPrem 84.71 -0.77 8.8 GlbA 57.62 -0.36 6.2 Loomis Sayles Fds IncomeFd NA ... NA Tweedy Browne Fds WellsIAdml 63.37 -0.26 4.2 SmValAdml 52.35 -0.65 1.5
and s apply. k-Recalculated by Lipper, using updated data. p-Distribution costs apply, ExtMktIdxPrem r 58.25 -0.78 6.1 FPA Funds LSBondI 14.16 -0.02 5.8 PIMCO Funds P GblValue 27.54 -0.17 10.0 WelltnAdml 70.52 -0.41 5.9 TotBd2 10.70 -0.01 2.1
12b-1. r-Redemption charge may apply. s-Stock split or dividend. t-Footnotes p and r IntlIdxPrem r 40.35 -0.09 14.3 FPACres 33.93 -0.18 5.3 Lord Abbett A IncomeP NA ... NA VANGUARD ADMIRAL WndsrAdml 74.51 -0.64 8.5 TotIntl 16.58 -0.08 14.1
apply. v-Footnotes x and e apply. x-Ex-dividend. z-Footnote x, e and s apply. NA-Not TMktIdxF r 69.59 -0.68 8.3 FrankTemp/Frank Adv ShtDurIncmA p 4.29 ... 1.5 Price Funds 500Adml 222.63 -2.02 8.8 VANGUARD FDS TotSt 60.18 -0.59 8.3
available due to incomplete price, performance or cost data. NE-Not released by Lipper; TMktIdxPrem 69.58 -0.68 8.3 IncomeAdv 2.31 -0.01 4.0 Lord Abbett F BlChip 86.34 -0.66 18.9
BalAdml 32.61 -0.21 5.8
DivdGro 25.20 -0.22 9.2 VANGUARD INSTL FDS
data under review. NN-Fund not tracked. NS-Fund didnt exist at start of period. USBdIdxInstPrem 11.57 -0.02 2.0 FrankTemp/Franklin A ShtDurIncm 4.29 ... 1.8 CAITAdml 11.75 -0.01 3.3 BalInst 32.62 -0.21 5.8
CapApp 28.40 -0.15 8.4 HlthCare r 210.12 -2.75 16.9
Fidelity Advisor I CA TF A p 7.43 -0.01 3.7 Metropolitan West CapOpAdml r142.96 -1.43 15.1 DevMktsIndInst 13.20 -0.06 14.1
EqInc 32.87 -0.29 5.3 INSTTRF2020 21.46 -0.11 6.6
NwInsghtI 30.21 -0.26 13.1 Fed TF A p 11.99 ... 2.1 TotRetBd 10.63 -0.02 1.8 EMAdmr 33.77 -0.19 14.3 DevMktsInxInst 20.63 -0.09 14.1
Thursday, July 6, 2017 EqIndex 64.77 -0.56 8.7 INSTTRF2025 21.59 -0.12 7.4
Fidelity Freedom IncomeA p 2.32 -0.01 3.5 TotRetBdI 10.63 -0.01 2.0 EqIncAdml 71.67 -0.57 6.2 ExtndInst 76.75 -1.03 6.2
Net YTD Net YTD Net YTD RisDv A p 56.08 -0.46 7.2 TRBdPlan 10.00 -0.02 2.0 Growth 63.17 -0.56 18.6
ExtndAdml 76.76 -1.02 INSTTRF2030 21.66 -0.14 8.0
FF2020 15.88 -0.08 7.6 6.2 GrwthInst 64.82 -0.60 13.8
Fund NAV Chg %Ret Fund NAV Chg %Ret Fund NAV Chg %Ret MFS Funds Class I HelSci 70.54 -1.02 19.4
GNMAAdml 10.51 ... 1.1
INSTTRF2035 21.75 -0.14 8.7
FF2025 13.69 -0.07 8.1 FrankTemp/Franklin C InPrSeIn 10.43 -0.02 0.7
American Century Inv NwWrldA 59.83 -0.31 16.3 5GlbFxdInc 10.94 -0.01 1.5 FF2030 17.00 -0.11 9.5 Income C t 2.35 -0.01 3.6 ValueI 39.20 -0.30 9.0 InstlCapG 34.85 -0.26 19.2 GrwthAdml 64.82 -0.60 13.8 INSTTRF2040 21.82 -0.15 9.4
InstIdx 219.68 -2.00 8.8
Ultra 40.23 -0.37 15.3 SmCpA p 52.20 -0.38 13.5 EmgMktVa 27.97 -0.20 17.0 FreedomK2020 14.77 -0.07 7.6 FrankTemp/Temp A MFS Funds Instl IntlStk 17.93 -0.08 17.3 HlthCareAdml r 88.63 -1.16 16.9 INSTTRF2045 21.90 -0.16 9.7 InstPlus 219.70 -1.99 8.8
American Funds Cl A TxExA p 12.92 -0.01 3.0 EmMktCorEq 20.46 -0.12 18.5 FreedomK2025 15.55 -0.09 8.2 GlBond A p 12.22 -0.03 3.2 IntlEq 23.68 -0.16 16.9 IntlValEq 14.51 -0.04 13.3 HYCorAdml r 5.94 -0.01 4.8 IntlVal 36.16 -0.18 13.9 InstTStPlus 54.03 -0.53 8.3
AmcpA p 29.11 -0.21 8.5 WshA p 42.17 -0.32 6.4 IntlCoreEq 13.11 -0.05 14.0 FreedomK2030 16.02 -0.10 9.6 Growth A p 25.98 -0.13 10.3 Mutual Series MCapGro 85.54 -0.98 13.5 InfProAd 25.60 -0.05 0.7 LifeCon 19.20 -0.08 5.1 MidCpInst 38.72 -0.42 8.3
AMutlA p 38.75 -0.29 6.2 Baird Funds IntlVal 18.26 -0.03 10.9 FreedomK2035 16.78 -0.12 10.4 FrankTemp/Temp Adv GlbDiscA 32.61 -0.16 6.7 MCapVal 29.64 -0.39 2.0 IntlGrAdml 83.00 -0.58 23.3 LifeGro 31.07 -0.21 8.7 MidCpIstPl 190.97 -2.05 8.3
BalA p 26.06 -0.13 6.2 AggBdInst 10.83 -0.02 2.4 IntSmCo 19.83 -0.07 15.5 FreedomK2040 16.81 -0.12 10.5 GlBondAdv p 12.17 -0.03 3.3 GlbDiscz 33.24 -0.17 6.8 N Horiz 50.65 -0.55 16.9 ITBondAdml 11.38 -0.02 2.6 LifeMod 25.57 -0.13 6.9 SmCapInst 64.29 -0.88 4.6
BondA p 12.89 -0.01 2.3 CorBdInst 11.18 -0.02 2.7 IntSmVa 21.65 -0.05 14.1 Fidelity Invest Harbor Funds Oakmark Funds Invest N Inc 9.46 -0.02 2.3 ITIGradeAdml 9.75 -0.01 2.6 PrmcpCor 24.98 -0.25 12.6 STIGradeInst 10.66 -0.01 1.4
CapIBA p 61.01 -0.26 7.6 BlackRock Funds A US CoreEq1 20.50 -0.21 7.2 Balanc 23.67 -0.19 7.9 CapApInst 65.90 -0.54 16.3 EqtyInc r 32.21 -0.16 5.9 OverS SF r 10.46 -0.04 15.3 LTGradeAdml 10.40 -0.04 5.6 SelValu r 30.82 -0.43 7.1 TotBdInst 10.74 -0.01 2.2
CapWGrA 48.71 -0.22 12.4 GlblAlloc p 19.45 -0.08 7.0 US CoreEq2 19.53 -0.20 5.7 BluCh 79.71 -0.75 18.3 IntlInst r 67.23 -0.45 15.1 Oakmark 77.94 -0.84 7.5 R2020 22.05 -0.12 8.0 MidCpAdml 175.29 -1.88 8.3 STAR 25.63 -0.16 9.0 TotBdInst2 10.70 -0.01 2.1
EupacA p 51.72 -0.14 17.1 BlackRock Funds Inst US Small 33.96 -0.43 0.8 Contra 113.46 -0.96 16.0 Harding Loevner OakmrkInt 26.69 +0.06 17.6 R2025 16.91 -0.10 9.1 MuHYAdml 11.26 -0.01 4.3 STIGrade 10.66 -0.01 1.4 TotBdInstPl 10.74 -0.01 2.2
FdInvA p 58.64 -0.39 9.5 EqtyDivd 23.84 -0.18 6.2 US SmCpVal 36.22 -0.48 -2.9 ContraK 113.43 -0.96 16.0 IntlEq NA ... NA Old Westbury Fds R2030 24.79 -0.15 10.0 MuIntAdml 14.12 ... 3.1 TgtRe2015 15.29 -0.07 5.4 TotIntBdIdxInst 32.42 -0.12 0.2
GwthA p 46.96 -0.33 11.7 GlblAlloc 19.59 -0.07 7.2 US TgdVal 23.57 -0.33 -1.3 CpInc r 10.00 -0.02 6.2 Invesco Funds A LrgCpStr 14.08 -0.08 9.7 R2035 18.05 -0.12 10.8 MuLTAdml 11.58 -0.01 3.6 TgtRe2020 30.10 -0.16 6.5 TotIntlInstIdx r110.91 -0.52 14.2
HI TrA p 10.41 -0.02 4.2 HiYldBd 7.77 ... 4.8 USLgVa 36.74 -0.34 5.6 DivIntl 38.50 -0.16 15.6 EqIncA 10.91 -0.08 4.1 Oppenheimer Y R2040 25.85 -0.18 11.4 MuLtdAdml 10.96 ... 1.9 TgtRe2025 17.55 -0.09 7.3 TotItlInstPlId r110.93 -0.52 14.2
ICAA p 38.69 -0.27 7.6 StratIncOpptyIns 9.91 ... 2.5 Dodge & Cox GroCo 161.93 -1.52 18.4 John Hancock Class 1 DevMktY 37.70 -0.27 17.9 Ret2045 17.43 -0.12 11.6 MuShtAdml 15.79 +0.01 1.0 TgtRe2030 31.55 -0.19 8.0 TotStInst 60.21 -0.59 8.3
IncoA p 22.45 -0.14 5.1 Del Invest Instl Balanced 105.95 -0.69 5.1 GrowCoK 161.84 -1.51 18.5 LSBalncd 15.22 -0.09 7.5 IntGrowY 39.79 -0.21 14.7 Value 36.47 -0.27 8.4 PrmcpAdml r124.22 -1.23 14.1 TgtRe2035 19.29 -0.12 8.7 ValueInst 37.56 -0.34 4.9
N PerA p 41.03 -0.26 16.1 Value 19.88 -0.24 1.9 Income 13.73 -0.02 2.6 InvGB 7.88 -0.01 2.2 LSGwth 16.07 -0.11 9.3 Parnassus Fds PRIMECAP Odyssey Fds REITAdml r 115.58 -2.24 0.6 TgtRe2040 33.05 -0.24 9.4 Western Asset
NEcoA p 42.00 -0.28 16.8 Dimensional Fds Intl Stk 43.63 -0.18 14.5 InvGrBd 11.22 -0.02 2.4 John Hancock Instl ParnEqFd 41.39 -0.46 5.9 Growth r 32.59 -0.42 13.8 SmCapAdml 64.29 -0.88 4.6 TgtRe2045 20.72 -0.15 9.7 CorePlusBdI NA ... NA
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B10 | Friday, July 7, 2017
AGIC Speeds Up a Launch
High demand leads
Henry Cais firm to
move up start date
for its newest fund
BY NINA TRENTMANN
AGIC Capital, a $1 billion
Hong Kong-based private-equity
fund, is moving up the launch
date of a new multibillion-dollar
fund due to strong investor de-
mand, its chairman said.
After initially setting a tar-
get date of 2018, AGIC now
plans to launch the fund this
year, Chairman Henry Cai said
in an interview with The Wall
Street Journal. AGIC plans to
raise $2 billion to $3 billion
for the new fund.
I have investors calling me
all the time, asking, Do you
have something for us to in-
vest in? Mr. Cai said.
The new fund is targeting
overseas and Chinese inves-
tors from the insurance, rein-
surance and wealth-manage-
ment sectors as well as rich
individuals, Mr. Cai said. Its
goal is to invest around 60% of
its capital in European tech-
nology firms and the rest in
U.S. investments, and to help
those firms expand to China.
The move comes days after
AGIC struck a deal to buy The
Ritedose Corp., a Columbia,
S.C.-based pharmaceutical
manufacturer.
Around 70% of the capital
for the new fund is expected to
come from investors outside of
China, Mr. Cai said. The rest
will come from overseas cash
holdings of Chinese investors.
There is a quite strong in-
terest by investors to bring
new technologies to China,
said Oliver Rui, a professor of
finance at the China Europe
International Business School
in Shanghai. Funds like AGICs
STREET
Continued from page B1
reduced. The frothier the
market, the less bad an un-
expected event has to be to
shake confidence.
A reasonable push back
against this view is that
there are few signs of irra-
tional exuberance. This isnt
March 2000, or even October
1987.
Robert Buckland, a strate-
gist at Citigroup, says only
two of his 18 bear-market
warning signsU.S. corpo-
rate indebtedness and global
price/earnings ratiosare
flashing, which he says
means investors should buy
Chances of a nasty
reaction to a minor
surprise are higher
than they were.
any dips.
It feels as though a lot of
investors are waiting for
dips to buy back in to the
market, one reason that vol-
atility has been so low.
Anyone who waited this
year has missed out on gains
of 7.6% in the S&P 500 this
year and 16.4% in eurozone
stocks in dollar terms, pain-
ful for those who held back.
A look at the past can tell
us a bit about dips. The S&P
500 hasnt had a 5% dip
since the post-Brexit vote
drop, only the third time
since the mid-1960s it has
managed more than a year
without such a pullback.
The gaps between 10%
Reasons to Be Miserable
U.S. stocks are more expensive than usual.
Few investors seem to care.
12-month forward price/earnings ratio, monthly data
25
20
15
10
5
0
1985 90
Source: Thomson Reuters
WOLFGANG MARIA WEBER/KRAUSSMAFFE/AP
AGIC Capital was part of a group that bought German equipment maker KraussMaffei Group.
appeal to Chinese investors,
and are unlikely to attract at-
tention from Chinese regula-
tors as they raise the majority
of capital outside the country.
From a regulatory point of
view, thats not a problem,
Mr. Rui said. Chinese regula-
tors are mostly scrutinizing
big transactions by Chinese
companies that involve the
overseas transfer of capital,
Mr. Rui said. The countrys
banking regulator at the end
of June began a probe of the
borrowings of some of the big-
gest Chinese overseas inves-
tors, including Anbang Insur-
ance Group Co. and Fosun
International Ltd.
Raising capital in interna-
tional capital markets isnt a
problem for AGIC, its chair-
man said. I have good con-
tacts, especially on Wall
corrections have sometimes
been a lot longer; seven
years in the 1990s and four
years in the great modera-
tion of the 2000s, com-
pared with less than 18
months since the last such
drop. But the real pain
comes with a 20% drop, the
usual definition of a bear
market.
Investors like to believe
that bear markets only come
with recessions, and so reas-
sure themselves that there is
no sign a recession is immi-
nent, repeating the mantra
that economic cycles dont
die of old age. Unfortu-
nately, this is both wrong
and useless.
First, 20% drops some-
times happen outside reces-
sions, as in 1987 and 1966.
Second, economic cycles can
be killed by a financial crash,
and as the late economist
Hyman Minsky pointed out,
the longer a financial cycle
goes on, the more likely it is
to turn to excess and end
badly. Worse, there is no re-
liable method of forecasting
a recession, so even if it
were true that only a reces-
sion could end the bull mar-
ket, that isnt a lot of use to
investors.
There is no way to be sure
when the next dip will come.
Investing is about probabili-
ties, and the chances of a
nasty reaction to a relatively
minor surprise are higher
than they werebut still not
nearly as high as they have
been at times of peak com-
placency in the past. When
everything is awesome it is
best to prepare for things to
be a little less awesome in
the future, even at the cost
of missing out on some of
the gains if investors get still
more complacent from here.
U.S. recessions
2000 10
THE WALL STREET JOURNAL.
MONEY & INVESTING
Street, Mr. Cai said. Before
co-founding AGIC in 2015, Mr.
Cai worked at a number of in-
ternational banks, including
Deutsche Bank AG, UBS
Group AG and BNP Paribas SA.
Among the shareholders of
his existing fund are sovereign-
wealth fund China Investment
Corp. and Chinese insurance
firms Citic Securities and China
Life Insurance.
Mr. Cai is focused on Euro-
pean technology, especially
from Germanys so-called Mit-
telstand sector comprising
medium-size, industrial com-
panies. AGIC was part of a
consortium led by China Na-
tional Chemical Corp. that last
year agreed to buy German
equipment maker KraussMaf-
fei Group GmbH for $1 billion.
For bigger deals, we would
look at partnering with a Chi-
Shorting campaigns have targeted at least 20 companies in the city this year. The skyline in the business district known as Central.
Shorting Dwindles in Hong Kong
BY STEVEN RUSSOLILLO
HONG KONGActivist in-
vestors have been increasingly
hunting for stocks to take on
in Hong Kong. Yet the rest of
the market isnt rushing to
jump on board.
Prominent short sellers, in-
cluding Carson Block of
Muddy Waters LLC and U.S.-
based Gotham City Research,
have targeted Hong Kong-
listed stocks in recent months
in an effort to profit from
what they expect will be future
price declines. These well-pub-
licized campaigns mask the
fact that overall short-selling
activity throughout Hong Kong
has declined as stocks in the
region have soared this year.
Hong Kong has been a dan-
gerous place to play for short
sellers, said Simon Colvin, re-
search analyst at financial-
data firm IHS Markit. There is
not a sustained appetite to
short these stocks.
Only 1.5% of shares in Hong
Kongs Hang Seng Index were
out on loan as of July 5, a
proxy for short interest reflec-
tive of investors betting
against a stock, according to a
report this week by IHS
Markit. That is the lowest level
in nearly two years and down
from 2.5% in August 2016.
Short sellers borrow shares
to sell them with the hope of
buying the shares back later at
a lower price and pocketing
nese partner, Mr. Cai said.
AGIC would do deals of up to
300 million ($340.5 million)
alone, he added.
The fund aims at taking a
controlling stakewith veto
rights and a board seatin
companies and sees itself as an
adviser that helps these com-
panies bring their technology
to China, Mr. Cai said. It plans
to invest in companies focus-
ing on industrial automation,
robotics, mechatronics and
semiconductor components.
The firm has offices in
Hong Kong, Shanghai, Beijing
and Munich, Germany. AGIC is
looking to open a London of-
fice soon, he said, but because
of Britains exit from the Euro-
pean Union, the fund isnt ac-
tively looking for U.K. invest-
ments. We will wait and see
first, Mr. Cai said.
the difference. Falling short in-
terest in Hong Kong contrasts
with what is happening in the
U.S. Some 4.1% of shares in the
Russell 3000 Indexa broad
U.S. benchmarkwere out on
loan in June, the highest level
in eight months and up from
3.6% at the beginning of the
year, according to IHS Markit.
Short selling can be contro-
versial. Proponents argue
skepticism in the market is
healthy, while skeptics say
short sellers can unfairly push
prices lower. NYSE Group
President Tom Farley said last
week that short selling feels
kind of icky and un-American.
Despite the fall in short sell-
ing in Hong Kong, the number
of activists wagering against
stocks there has risen. Short-
seller campaigns have targeted
at least 20 Hong Kong-listed
companies since last year, the
most at least since 2012, ac-
cording to New York-based re-
search firm Activist Insight.
Observers could be for-
given for thinking that Hong
Kong has turned into a free-
for-all for short sellers, Mr.
Colvin said. In fact, the oppo-
site looks to be happening.
Part of the reason why, he
said, is that short sellers in the
region have covered about
one-third of their positions, on
average, since the beginning of
the year. Short covering refers
to traders closing out earlier
positions that bet on prices
* * THE WALL STREET JOURNAL.
Hedge Funds
Can Be Small
And Profitable
BY LAURENCE FLETCHER
Lower fees, weaker returns,
higher costs. Running a hedge
fund isnt what it used to be.
To avoid going out of busi-
ness, smaller funds are learn-
ing to tighten their belts.
Smaller hedge funds have
come under severe pressure in
recent years due to a toxic mix
of poor returns, investor de-
mands for lower fees, and ris-
ing costs of regulation and
compliance.
But a survey by industry
body the Alternative Invest-
ment Management Association
and broker GPP shows many
funds can still make a profit
with lower levels of assets.
Many have been able to cut
costs by, for instance, out-
sourcing some roles, and are
managing to live with the ex-
pense of meeting greater com-
pliance requirements from
regulators and investors.
And while investors are de-
manding lower fees, this pres-
sure isnt driving most manag-
ers to the wall.
You need to keep the lights
on, said Tom Kehoe, global
head of research at AIMA.
From the allocators we talk
to, the last thing they want to
do is put these managers out
of business.
The survey showed that on
average small hedge-fund
firms could break even run-
ning $87 million in assets,
while 57% of firms surveyed
were able to break even run-
ning $100 million or lessa
relatively low level of assets
for a hedge fund.
Funds trading rising and
dropping. The act of buying
back stocks in this instance
can push prices higher. That
comes as the Hang Seng Index
rose 17% in the first half of the
year, one of the top-perform-
ing indexes around the world.
Some of the most heavily
shorted Hong Kong stocks
have ended up soaring this
year, squeezing investors out
of positions. Short interest in
AAC Technologies Holdings
Inc., an Apple Inc. supplier,
nearly doubled in May after
Gotham City Research pub-
lished a report questioning the
1.5%
Amount of shares on Hang Seng
Index out on loan as of July 5
companys results. But short
interest has dropped ever
since, according to IHS Markit,
and the stock is still up for the
year. A representative from
Gotham City wasnt available
for comment. AAC has called
the allegations inaccurate and
misleading.
China-based auto maker
Great Wall Motor Co. and
property developer China Ev-
ergrande Group have faced
similar short squeezes this
year, too.
falling stocks, bonds or some
computer-driven strategies
could on average turn a profit
on well below $100 million of
assets.
The findings paint a
brighter picture than many
commentators have assumed
of the health of small hedge
funds.
Average hedge-fund returns
regularly hit double digits dur-
ing the 1990s and 2000s. That
made starting and expanding a
hedge fund an easier and more
profitable bet due to strong
investor demand for such re-
turns and the fees such busi-
nesses could earn.
However, funds have lost
money on average in two of
the past six calendar years,
meaning some big investors
have lost patience with the
sector.
While some big-name funds
have suffered, many investors
remain wary of putting money
with a manager with a short
track record.
The survey also showed
that the lucrative model of a
2% management fee and a 20%
incentive feeonce seen as
the industrys benchmark
doesnt apply to most small
managers. Half of firms sur-
veyed charged an annual fee of
less than 1.5% of assets in
their main fund, while funds
starting up in the past year
could only command a 1.25%
fee on average, highlighting
the pressure many face.
AIMA and GPP surveyed 135
managers globally managing
less than $500 million each.
Funds surveyed ran $16 billion
in assets in aggregate.
ANTHONY WALLACE/AGENCE FRANCE-PRESSE/GETTY IMAGES
Worries about the enforce-
ment of tighter regulation and
potential repercussions for
short sellers are also a concern
in Hong Kong. Stocks are only
eligible to be sold short if their
daily turnover exceeds 60% of
the companys market capital-
ization, which must also ex-
ceed 3 billion Hong Kong dol-
lars (US$384.2 million),
according to Hong Kong Ex-
changes & Clearing Ltd. These
restrictions often make it diffi-
cult to bet against companies.
Hong Kong authorities de-
clared last year that U.S. short
seller Andrew Left of Citron
Research was reckless or
negligent for spreading false
and misleading information
about a Chinese property de-
veloper. Mr. Left was banned
from trading in Hong Kong
stocks for five years.
Public reports questioning
stock valuations and corporate
accounting first made a splash
in Asia in 2011 with Mr. Block
of Muddy Waterss successful
attack on Chinese timber com-
pany Sino-Forest Corp. Late
last year, he announced he was
shorting China Huishan Dairy
Holdings Co., which operates
the most dairy farms in China,
and said the company was
worth close to zero. In
March, its shares fell 85% in a
day and they have been halted
since, with the company last
month admitting it had lost
track of most of its cash.
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
THE WALL STREET JOURNAL.
Selloff
Of Bonds
Continues
Globally
BY MIN ZENG
Investors around the world
sold government bonds anew
Thursday as anxiety deepened
that central banks are moving
toward reducing stimulus ef-
forts that have supported debt
markets.
The eurozone remained at
the center of the selling as the
yield on the benchmark 10-
year German
CREDIT government
MARKETS bond rose to its
highest level
since early 2016.
Bond yields also climbed in the
U.K., Denmark, Sweden, Can-
ada and the U.S. Yields rise as
bond prices fall.
The yield on the U.S. 10-
year Treasury note settled at
2.369%, compared with 2.334%
Wednesday. That marked the
yields highest closing level
since May 11.
Sentiment for bonds has
gone from the rooftop to the
basement, said Jim Vogel,
market strategist at FTN Fi-
nancial.
A factor driving the selling
has been investors concerns
over possible shifts in mone-
tary policy throughout the de-
veloped world, triggered by
hawkish signals from the Euro-
pean Central Bank, Bank of
England and Bank of Canada
last week.
Some of Thursdays moves
came after the release of min-
utes from the ECBs recent pol-
icy meeting. Those showed
ECB officials in June discussed
how to signal their increasing
confidence in the eurozone
economy and considered drop-
ping a pledge to accelerate
their massive bond-buying
program. That came after the
Federal Reserves minutes
Bond sentiment has
gone from the rooftop
to the basement, one
strategist said.
Wednesday afternoon sug-
gested U.S. policy makers may
start paring back the central
banks large bondholdings in
coming months.
Fresh new debt sales from
Spain, France and the U.K.
added to the selling pressure,
traders said.
Bond buying and other
stimulus from the ECB and
Bank of Japan have helped
push global government bond
yields to historically low levels
over the past years. Analysts
have warned that the value of
government bonds, propped up
by these big buyers, would
drop once central banks re-
duce support.
The selloff, which has per-
sisted in the U.S. for six of the
past seven sessions, shattered
months of relative calm in
bond markets. The 10-year
Treasury yield had fallen to
2.135% on June 26, the lowest
closing level this year. Since
then, the yield has risen more
than 0.2 percentage point.
The yield on the 10-year
German bund has more than
doubled since June 26 and
traded at 0.569% Thursday af-
ternoon, the highest close
since January 2016, according
to Tradeweb.
Some investors said higher
bond yields reflect optimism
toward the economic outlook.
Recent data have pointed to
broad improvement in the
global economy, which sup-
ports the case for major cen-
tral banks to become less gen-
erous in providing monetary
stimulus. A monthly gauge of
the U.S. service sector Thurs-
day continued to point to solid
expansion.
Investors also are looking to
Fridays jobs report for signals
on the Feds timing for possi-
ble future interest-rate in-
creases. Some analysts said a
strong report could spark fur-
ther selling.
Bond yields remain at very
low levels. The 10-year Trea-
sury yield is still below
2.446%, where it settled at the
end of last year. Previous sell-
offs in recent years have
proved short-lived. Now de-
bate is growing among inves-
tors about whether the current
bout may soon fade or gain
more momentum.
* * * *
Rocky Trading Expected in Tech
BY CHRIS DIETERICH
While traders continue to
expect placid trading for the
broader U.S. equity market,
they are also seeing big
moves in tech stocks.
A rare disconnect has
emerged between the ex-
pected volatility of the Nas-
daq 100 Index and the S&P
500. It is one more sign of
investor uncertainty that
2017s biggest winners can
continue to gallop higher.
Technology and internet
stocks that propelled U.S.
stock market gains for the
first five months of this year
but abruptly reversed course
on June 9 and have lost
ground since.
While S&P 500 technol-
ogy companies, including
Apple Inc., Facebook Inc.
and Google parent Alphabet
Inc. climbed on Wednesday,
the group has fallen 5.2%
S&P 500 Suffers Biggest Loss Since May
BY RIVA GOLD AND AKANE OTANI
The S&P 500 posted its big-
gest one-day drop since May
as U.S. stocks fell broadly
Thursday.
The losses hit all 11 sectors
of the S&P 500, ending a three-
day winning
EQUITIES streak for the
index and put-
ting it on
course to decline in the first
week of July.
Some investors and analysts
have said the 2017 stock rally
could stall in the second half
of the year, especially if bor-
rowing costs rise but economic
growth is mediocre.
In recent weeks, govern-
ment bond yields have climbed
as central banks have signaled
the end of monetary stimulus
is coming.
There is a near-unanimous
view coming out of central
banks for an unwinding of this
unconventional policy, either
through interest-rate rises or
pulling back on quantitative
easing, or in the United States,
selling down some of the cen-
tral-bank holdings, said Paul
Flood, multiasset portfolio
manager at Newton Invest-
ment Management.
People have finally woken
up to the fact theres not a
backstop, a forced buyer in the
marketplace anymore, he
said.
The S&P 500 fell 22.79
points, or 0.9%, to 2409.75its
biggest loss since May 17.
The Dow Jones Industrial
Average declined 158.13 points,
or 0.7%, to 21320.04 and the
Nasdaq Composite shed 61.39
points, or 1%, to 6089.46, pres-
sured by declines in technol-
ogy and biotech shares.
Both indexes notched their
biggest declines in a week, and
it was the Nasdaqs sixth de-
cline in eight sessions.
Energy stocks, the worst-
performing sector in the S&P
500 in 2017, fell 1.8%, with
Newfield Exploration, Apache
and Noble Energy among the
biggest decliners.
The moves came even as oil
prices rebounded from
Wednesdays slump. U.S. crude
for August delivery rose 0.9%
Aramco Output Hit Record Euro Rises on Hopeful
BY SUMMER SAID
Saudi Arabian Oil Co., the
worlds biggest producer of
crude oil, pumped record
amounts last year, the com-
pany said Thurs-
ENERGY day, providing an
insight into the
secretive firm
ahead of its partial initial
public offering.
Aramco, as the kingdoms
state-owned oil company is
known, helped send crude
prices into a tailspin in 2016
by producing an average of
10.5 million barrels a dayits
highest output everup from
10.2 million barrels a day in
2015.
The high output reflects
Saudi Arabias focus last year
on building and defending
market share, a strategy it has
pulled back from.
The country is set to pub-
licly list 5% or less of Aramco
in 2018 in the hope of raising
tens of billions of dollars. The
kingdoms powerful crown
prince, Mohammed bin Sal-
man, has pledged to invest
MARKETS
from last months closing
high.
Techs U-turn was met
with continued calm in the
broader market. That is due
in part to a rebound in
shares of financial and
health-care stocks, which
have picked up the slack
from tech.
The sector rotation is evi-
dent in the divergence be-
tween the subdued CBOE
Volatility Index, or VIX, and
a measure tracking the ex-
pected volatility of the tech-
heavy Nasdaq 100.
The VIX is based on
prices of S&P 500 options
and gauges expectations for
swings in the index over the
next 30 days.
The CBOE NASDAQ-100
Volatility Index does the
same for the Nasdaq 100, an
index of the largest nonfi-
nancial stocks listed on that
exchange.
Stalling Out
U.S. stocks have been choppy in recent weeks, with declines
in technology shares weighing on the Nasdaq Composite.
Index performance since June 8
2%
1 Dow Jones
0 Average
1 kerage Stifel Nicolaus cut its
2 from hold.
3 Nasdaq
4 t3.7%
June
Source: WSJ Market Data Group
to $45.52 a barrel Thursday.
Seesawing oil prices have
weighed on shares of energy
companies, pulling them down
15% in the S&P 500 so far this
year.
much of the proceeds in eco-
nomic diversification, boost-
ing Saudi Arabias technologi-
cal and industrial sectors and
reducing reliance on oil reve-
nue.
Aramco has reduced its
output to less than 10 million
barrels a day this year as
Saudi Arabia and other mem-
bers of the Organization of
the Petroleum Exporting
Countries cut oil production.
Their hope is to bring a
vast global oversupply of
crude back in line with de-
mand and thus raise petro-
leum prices, which remain be-
low $50 a barrelless than
half their level from three
years ago.
Saudi Arabian officials have
said the production cut was
intended to put a floor under
oil prices ahead of the Aramco
IPO, the value of which will be
determined in part by the di-
rection of the oil market.
In its annual report, pub-
lished Thursday, Aramco of-
fered a look at another key
metric for its IPO: the massive
crude-oil reserves it manages
The Nasdaq 100 volatility
index darted as high as 18.9
this week from under 13
early last month, while the
VIX ended Thursday at 12.5.
The current ratio of the
two, at 1.4, is well above av-
erage and this week hit 1.7,
near its highest level in a
decade.
Traders often watch for
unusual departures in trad-
ing relationships with the
assumption that in time, the
levels will revert to back to
historical patterns.
Expected volatility of the
Nasdaq 100 tends to be
higher than the S&P 500 be-
cause its stocks are gener-
ally more volatile.
Still, the two have tended
to move up and down in tan-
dem. That indicates that ei-
ther the VIX is due to play
catch-up and rise or that
worries about tech stocks
will recede, pulling down
Industrial
s0.6%
S&P 500
t1%
Composite
Index
July
THE WALL STREET JOURNAL.
Consumer-discretionary
shares lost 1% in the S&P 500.
Shares of Victorias Secret par-
ent L Brands, which reported
a drop in same-store sales for
June, fell $7.62, or 14%, to
for the kingdom.
Aramcos recoverable
crude-oil and condensate re-
serves slipped to 260.8 billion
barrels at the end of 2016
from 261.1 billion a year ear-
lier. Considering that it
pumped more than 3.8 billion
barrels of oil in 2016, the
small slip in reserves suggests
that Aramco made strides in
either discovering new oil or
making current wells more ef-
ficient.
Saudi oil reserves have re-
mained at around 260 billion
barrels for decades. Saudi of-
ficials say independent ana-
lysts will confirm Aramcos
reserves ahead of the IPO.
Aramcos gas reserves rose
to 298.7 trillion standard cu-
bic feet from 297.6 trillion,
while natural-gas production
increased to 12 billion stan-
dard cubic feet a day from 11.6
billion standard cubic feet.
The company said it dis-
covered two new oil fields,
Jubah and Sahaban, and one
new gas field, Hadidah, all in
Saudi Arabias Eastern Prov-
ince.
Divergence
The ratio of the VXN, a measure of expected volatility in the Nasdaq
100 Index, to the VIX is near the highest in a decade.
1.8 times
1.6
1.4
1.2
1.0
0.8
2006 07 08 09 10 11
Source: Chicago Board Options Exchange
the Nasdaq-100 volatility
measure.
The degree of difference
between the two gauges cur-
Shares of Henri Bendel parent L Brands fell 14% after the
company reported weak same-store sales for June.
$46.49.
The S&P 500 health-care
sector, one of 2017s biggest
gainers, fell 1.3%. Shares of
medical-supplies conglomerate
Patterson Cos. dropped 3.28,
or 6.9%, to 44.15, posting the
steepest one-day percentage
decline in the sector, after bro-
rating for the stock to sell
U.S. government bonds
pulled back for the sixth time
in seven sessions, with the
yield on the 10-year U.S. Trea-
sury note rising to 2.369%
from 2.334% Wednesday.
Yields rise as bond prices fall.
A hiccup in the bond market
could ripple over into stocks in
the short term, but if the econ-
omy continues to strengthen,
there is a good chance equities
will move higher, too, said
Brent Schutte, chief investment
Report From ECB
BY CHELSEY DULANEY
The dollar slid Thursday while
the euro rallied as investors con-
tinue to assess
CURRENCIES the outlook for
tighter mone-
tary policy in
the U.S. and Europe.
The WSJ Dollar Index,
which measures the U.S. cur-
rency against 16 others,
slipped 0.2% to 88.17. The euro
was the strongest major cur-
rency of the day, rising 0.6%
against the dollar after the re-
lease of minutes from the Eu-
ropean Central Banks latest
policy meeting added to spec-
ulation that the central bank
soon could wind down its
quantitative-easing program.
The minutes showed ECB
policy makers discussed how
to signal their increasing con-
fidence in the eurozone econ-
omy at their June policy meet-
ing and considered dropping a
pledge to accelerate their mas-
sive bond-buying program.
That comes after ECB Presi-
Friday, July 7, 2017 | B11
12 13 14 15 16 17
THE WALL STREET JOURNAL.
rently is typically not sus-
tainable, said Peter Tchir at
Brean Capital LLC in New
York.
ASTRID STAWIARZ/HENRI BENDEL/GETTY IMAGES
strategist at Northwestern
Mutual Wealth Management.
The Stoxx Europe 600 fell
0.7% after minutes from the
European Central Banks June
meeting showed policy makers
considered dropping a pledge
to accelerate their massive
bond-buying program.
Banks and insurance com-
panies in Europe outperformed
as they tend to benefit from
higher government bond
yields.
Japans Nikkei Stock Aver-
age fell 0.4% after the yen
strengthened against the dol-
lar, pressuring the export-
heavy index. The benchmark
was down a further 0.3% early
Friday. Hong Kongs Hang Seng
Index eased 0.2% Thursday
and was down a further 0.5%
early Friday. Australias S&P
ASX 200 was off 1.4% early
Friday.
dent Mario Draghi last week
sent the euro soaring by hint-
ing the bank could start to un-
wind its accommodation amid
an accelerating economy.
Meanwhile, investors con-
tinue to focus on U.S. eco-
nomic data as they assess the
outlook for additional policy-
tightening in the U.S.
A report from Automatic
Data Processing Inc. showed
private U.S. firms added
158,000 workers in June, be-
low economists expectations.
The report raised concerns
that Fridays nonfarm payroll
datathe most closely
watched labor-market report
will also disappoint.
Markets largely brushed off
rising tensions surrounding
North Korea, though the South
Korean won came under pres-
sure. President Donald Trump
said he is considering some
pretty severe things in re-
sponse to North Koreas con-
tinued efforts to develop nu-
clear weapons that can reach
the U.S.
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
B12 | Friday, July 7, 2017
Bank of Japan Tapers Without Tantrum
By targeting bond
yields, nation reduces
stimulus without
spooking investors
BY MIKE BIRD
The European Central Bank
is wrestling with a problem
facing monetary-policy makers
around the Western world
dialing back stimulus without
upending financial markets.
But one central bank has
been quietly balancing this act
since late last year, buying
fewer bonds without spooking
investors: the Bank of Japan.
On Thursday, Germanys 10-
year bund yield hit 0.5% for
the first time since the start of
2016 as investors continue to
anticipate the winding down
of the ECBs 60 billion ($68.3
billion) of monthly bond pur-
chases.
Central banks have been
buying bonds to stimulate the
economy and inflation.
The BOJ does this by tar-
geting where it wants govern-
ment-bond yields to be, rather
than setting an amount of
money it will spend every
month, as the ECB and Bank of
England do and Federal Re-
serve once did.
So if the BOJ hits its target
of a zero yield on 10-year gov-
ernment debt, it can adjust its
buying without having to an-
nounce it. Likewise, the com-
mitment to intervene if yields
rise puts off anyone consider-
ing shorting Japanese bonds:
Nobody wants to go up against
a buyer that can essentially
print its own money.
In the second quarter of
2017, the BOJ accumulated an
average of 13.5 trillion ($119
billion) in assets, compared
with a quarterly average of
22.8 trillion in 2016, accord-
ing to Japan Macro Advisors.
That is less than at any time
since the program began in
the spring of 2013. Japanese
government-bond yields have
gyrated far less than their Eu-
Email: heard@wsj.com
Pay Ratio: Flawed but Useful Tool
A controversial new met-
ric on executive pay is on
Congresss chopping block.
Shareholders should want it
to survive, even if it provides
only a sliver of insight into
the companies they own.
Beginning next spring,
possible repeal notwith-
standing, companies will be
required to publish a Bigwig
vs. Regular Joe pay ratio, or
the total earnings of the
chief executive compared
with those of the median
employee.
Supporters of the rule,
part of the postfinancial-cri-
sis Dodd-Frank Act, hope
disclosure at an individual-
company level might focus
more attention on inequality
and sky-high CEO pay.
The ratio has ballooned
since the 1970s: The bosses
of Americas 350 largest
companies made on average
276 times the money of their
rank-and-file subordinates in
2015, up from 30 times in
1978, according to the left-
leaning Economic Policy In-
stitute.
Republicans want to re-
peal the requirement as a
This Dish Could Be Extremely Pricey, Even for Amazon
Dish Network has a lot to
gain from an alliance with
Amazon.com as it faces a
government deadline to de-
velop its wireless airwaves.
For Amazon, the benefits are
less clear and could be
costly.
Dish Network Chief Execu-
tive Charlie Ergen has been
discussing a potential part-
nership with Amazon CEO
Jeff Bezos that could involve
the e-commerce giant help-
ing to finance a wireless net-
work on Dishs airwaves, The
Wall Street Journal reported.
Under that scenario, Amazon
could use the network to
power web-connected de-
vices, including its Echo
home speaker, delivery
Keeping Control
Central bankers face a challenge in tightening monetary policy without triggering swings in the bond market.
The Bank of Japan stands out for its tight grip on yields.
The Bank of Japan's balance-sheet expansion has slowed,
which could allow for yields to rise...
30 trillion
20
10
0 0.25
2012 13 14
The European Central Bank began its quantitative-easing program in 2015 and is
now one of the worlds major buyers.
300 billion
200
100
0
100
2012 13 14
*Change in yields, in percentage points, since September 21, 2016. Note: 1 = $0.01; 1 = $1.14
Sources: Tradeweb (yields); Japan Macro Advisors (balance sheet); European Central Bank (stock of bonds); Factset (yield curves)
ropean and U.S. peers in the
past nine months and havent
joined in the recent selloff.
That selling was sparked
last week when ECB President
Mario Draghi noted a few months.
strengthening and broaden-
ing recovery in the eurozone.
Draghi is discovering that
narratives contrary to the one
you want to get across can
take hold in the market, said
Grant Lewis, head of research
at Daiwa Capital Markets Eu-
rope.
Minutes from the ECBs
June meeting released Thurs-
day showed policy makers
weighing whether to drop
their bias toward further stim-
ulus. That followed the release
of the Federal Reserves meet-
HEARD ON THE STREET
Foul Pay?
Ratio of realized CEO pay to average pay
for the top 350 U.S. rms by sales
400 times
300
200
100
0
1965 1970 1980
Source: Economic Policy Institute
way to trim compliance costs
for companies. Some also ar-
gue the ratio isnt instruc-
tive: Wal-Mart will have a
higher one than Goldman
Sachs, but that only indi-
cates that Wal-Mart employs
more unskilled workers than
Goldman Sachs.
The rollback made it
through a House of Repre-
sentatives bill in June.
Whether it can clear the
Senate in time for next
springs proxy-statement
Up in the Airwaves
Dish Networks share price
$70
65
60
55
50
45
2016 17
Source: FactSet
drones and other products in
the works. Another idea
would have Amazon invest in
a Dish wireless network in
exchange for the ability to
offer Prime members special
pricing for wireless service.
MARKETS
Bank of Japan balance-sheet change, three-month rolling totals
15 16
Change in bonds held by Eurosystem, three-month rolling totals
15 16
ing minutes Wednesday, where
officials signaled they may be
ready to start slowly shrinking
their large portfolio of bonds
and other assets in the next
Germanys 10-year bund
yields have risen by more than
0.3 percentage point in the
eight sessions through Thurs-
day, the largest jump over that
length of time since June 2015,
according to Thomson Reu-
ters. Bonds in advanced econ-
omies tend to move together,
and yields on U.S. and British
10-year bonds rose by a simi-
lar amount. But Japans 10-
year yields rose by just 0.045
percentage point. Yields rise
as prices fall.
The BOJ can keep its mar-
FINANCIAL ANALYSIS & COMMENTARY
1990 2000 2010
THE WALL STREET JOURNAL.
season is anyones guess.
If the ratio survives,
shareholders might find it a
modestly useful addition to
their analytical toolbox. The
key insights will come from
seeing how it evolves for a
specific company over time.
A widening ratio could be a
warning flag that a manage-
ment team is getting greedy.
Admittedly, the SEC re-
quires companies to update
the calculation only once ev-
ery three years, so useful in-
For Dish, which has said it
plans to build a bare-bones
network in order to comply
with a government-imposed
deadline of March 2020, an
investment by Amazon would
go a long way toward con-
vincing bears it can offer a
substantive service by then.
The threat that Dishs trove
of airwaves could fall into
Amazons hands could also
push Verizon Communica-
tions or T-Mobile US into
talks with the satellite com-
pany.
The question is how
deeply Amazon wants to
tread into the wireless indus-
try, where an increasing
number of players, including
traditional wireless carriers
...but Japan's 10-year bond yields have moved less than their international peers
since the central bank introduced a yield target of zero in September.
1.00 percentage point
0.75
0.50
0.25
0.00
17
Yields on government bonds in both Germany and Japan are low, but the German
curve is steeper.
1.5%
1.0
0.5
0.0
0.5
1.0
17 1 5
kets stable by setting a clear
limit on what it will tolerate,
analysts say. In early February,
when 10-year yields rose as
high as 0.15%, the central bank
offered to buy an unlimited
volume of bonds at a yield of
0.11%, pushing yields back
down.
Its clearly been easier for
[BOJ chief Haruhiko] Kuroda.
Hes stood up and said yields
will be held at these levels.
Try and beat me, Ive got infi-
nite resources, Mr. Lewis
added. Thats actually al-
lowed them to start purchas-
ing less.
Some analysts even expect
the BOJ to drop the 80 tril-
lion target for annual bond
purchases.
sights into how the median
wage changes relative to
profit, say, would take years
to emerge.
That said, investors
shouldnt assume more
thriftily paid bosses offer
value for money. Simplistic
studies can show an associa-
tion between lower pay and
higher returns, but this is
partly because larger compa-
nies pay better while small-
caps usually outperform
large-caps.
Adjusting for size, using
actual realized rather than
the estimated target pay dis-
closed in proxy filings, and
factoring in the performance
of previously awarded
shares, PricewaterhouseCoo-
pers found a strongly posi-
tive correlation between ex-
ecutive pay and three-year
total returns for big U.K.
companies. This is logical,
given how much executive
pay is triggered by return
thresholds these days.
Investors should welcome
any move toward greater
transparency, but wield their
new analytical tool with cau-
tion. Stephen Wilmot
and cable companies, are
competing for a shrinking
pool of profits.
If Amazon needs wireless
capacity to operate its
drones and other devices it
could easily buy that from an
existing carrier. Such devices
likely wouldnt require huge
amounts of bandwidth unless
they involve streaming video.
And if Amazon wants to use
Dishs network for video, it
will have to invest consider-
ably more.
Indeed, while Dish would
give Amazon access to wire-
less capacity and let it tap its
Prime members to build a
subscriber base, clearing the
final barrier to entrywill-
ingness to spend massive
THE WALL STREET JOURNAL.
2017
10 15
Years until debt maturity
Abandoning this target
would come at little cost to
the policy path, said Freya
Beamish, chief Asia economist
at Pantheon Macroeconomics.
The yield-curve target is do-
ing all the work.
Mr. Draghi has outlined the
difficulty faced by any central
bank looking to taper quanti-
tative easing. While the
threat of deflation that the
ECBs program was designed
to counter has passed, a
very substantial degree of
monetary policy is still
needed, in part to ensure
that overall financing condi-
tions continue to support
that reflationary process, he
said in late June.
An ECB target wouldnt
OVERHEARD
What do a Connecticut
bank, a furniture maker and a
gold miner have in common?
They are the S&P 500 stocks
most heavily owned by index
funds, according to Bank of
America Merrill Lynch.
Peoples United Financial,
Leggett & Platt and New-
mont Mining are all more
than 20% owned by index
funds.
Why does that matter?
Because the more shares are
owned by passive funds, the
fewer shares are available for
regular trading. That can
make stocks more volatile,
according to Merrill.
The share of assets run by
index funds has doubled since
2009 and the impact of the
change has been debated
endlessly.
Merrill argues that stocks
with the highest passive
ownership have become more
volatile and suffer bigger
drops than comparable
stocks.
Investors who buy index
funds thinking they are
safer should get ready for a
wild ride.
amounts to build and main-
tain a networkcould be
more of a stretch.
Of course, Mr. Bezos has a
long investment horizon. He
could still opt to do a low-
stakes deal that would give
Amazon some future options
in wireless as technologies
shift. That would allow Mr.
Ergen to meet his deadline
and then decide whether try
to deepen his companys re-
lationship with Amazon or
find another partner or
buyer.
Amazon gives Dish more
credibility in its quest to
build a wireless network.
Amazon gets some options,
but potentially very expen-
sive ones. Miriam Gottfried
Japan Germany U.S.
Japan Germany
20 25 30
THE WALL STREET JOURNAL.
necessarily iron out the vola-
tility. Bond yields in Europe
have long been more dramatic
than those in Japan, where
growth and inflation have
been sluggish for decades. The
ECB also has a series of na-
tional government bond mar-
kets to deal with, rather than
a single one.
For a long time Japanese
inflation expectations have
been extremely low, said Pe-
ter Chatwell, head of Euro-
pean rates strategy at Mizuho
International. So the central
bank is more able to adjust its
monetary policy without an
immediate jump higher in
yields.
Riva Gold
contributed to this article.
WSJ.com/Heard
Bond Yields
Dictated by
Europe Now
Bond investors, look to
Europe. The dance of expec-
tations between the Euro-
pean Central Bank and gov-
ernment-bond markets is the
biggest driver of yields now.
Ten-year German bond
yields Thursday broke deci-
sively above 0.5% for the
first time since January
2016, extending a selloff that
started with a speech from
ECB President Mario Draghi
last week that seemed to
surprise investors.
What happens in Germany
matters to U.S. markets at
the moment. The move in
Germany again pushed Trea-
sury yields higher and lifted
the euro against the dollar
while weighing on stocks.
It now seems likely that
bonds were mispriced before
Mr. Draghis speech. The
minutes of the ECBs June
meeting, published Thursday,
show policy makers more
confident in the growth out-
look and perplexed why
stocks, but not bonds, re-
flected that in their pricing.
The minutes also show
policy makers wondering if
they should change their
guidance on bond purchases.
In the end they decided to
change only the guidance on
interest rates, dropping a
reference to the possibility
of rates going lower.
The ECB and Federal Re-
serve dont want to shock
markets. But bond markets
that have relied upon cen-
tral-bank buying will have
less support if the ECB
moves to slow its purchases,
the Bank of Japan continues
to buy less than expected
and the Fed starts selling its
holdings.
Central bankers are likely
to stress they are moving
very gradually. But markets
may find it difficult to move
as slowly as central bankers
might like. Richard Barley
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.

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

Lake Tahoe estate

equipped with I am terrified of being bored.
glass funiculars Marie Antoinette
asks $75 million M2

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

2017 Dow Jones & Company. All Rights Reserved. THE WALL STREET JOURNAL. Friday, July 7, 2017 | M1

DOROTHY HONG FOR THE WALL STREET JOURNAL (3)

ABOVE IT ALL In Old Brookville, N.Y., this nearly completed 17th-century-style chateau was inspired by the Palace of Versailles. Owner Raphael Yakoby, an Israel-born entrepreneur who created Hpnotiq li-
queur, says he plans to move in next month, but once its completed hes also planning to put it on the market for $100 milliona figure he says is close to the cost of building the home.

My Very Own
Versailles
Wealthy homeowners continue to
re-create Louis XIVs opulent
behemoth, but building the dream
requires a big bank account.

BY CANDACE TAYLOR
ON AN UNASSUMING side street in Long Is-
lands Old Brookville,a 1,000-foot-long driveway
flanked by an alle of pear saplings leads to a
120-room, 17th-century-style chteau bedecked
with elaborate limestone carvings. Atop its slate
roof, a copper ridge decorated with rosettes
shines in the early summer sun. Above the front
door, the initials RY are flanked by horn-blow-
ing cherubs.
Though it is a brand-new building in suburban
Long Island, the roughly 23,000-square-foot
structure looks for all the world like it belongs in
France at the Palace of Versailles, King Louis
XIVs famous creation. That was the goal of its
owner Raphael Yakoby, an Israel-born entrepre-
neur who created Hpnotiq liqueur, a bright blue
liqueur popularized by hip-hop artists in the early
2000s.
The front door, with its wrought-iron metal-
work, is a scaled-down replica of a door found
at Versailles. On the grand staircase in the foyer,
the cast-iron and gold-leaf banister is a replica
of one found at Le Petit Trianon, Marie Antoi-
nettes retreat on the grounds of Versailles.
Mr. Yakoby, who has spent about four years
building the house, says he plans to move in next
month, but once it is completed hes also planning
to put it on the market for $100 milliona figure
he says is close to the cost of building the home.
There is something about Versailles that has
produced a seemingly constant stream of imita-
tors, ever since the late 1600s, when Louis XIV
transformed a hunting lodge into the opulent
palace known world-wide. With roughly 2,300
rooms and its chandelier-laden Hall of Mirrors,
Versailles started prompting imitations as soon
as it was completed, from other European pal-
aces to grand homes. Even the layout of the city
of Washington, D.C., borrowed elements from
the gardens of Versailles.
When it comes to private homes, Versailles
continues to have an outsize influence: Accord-
ing to Realtor.com, 23 homes currently on the
market or recently sold referenced Versailles in
their marketing copy. Its maintained this huge
mystique, says historian Tony Spawforth, au-
thor of Versailles: A Biography of a Palace.
Please turn to page M10

HOUSE CALL | SHERRY LANSING INSIDE

INSPIRED BY HER MOMS COURAGE

The former Hollywood executive started out helping her widowed mother collect rents; today, opera in Bel Air.

Sherry Lansing, 72, is the

former chairman and CEO of
Paramount Pictures. She is
the subject of Stephen Gallo-
ways biography, Leading SMALL LUXURIES
Lady: Sherry Lansing and the The mini kitchen
Making of a Hollywood goes upscale M4
Groundbreaker (Crown Ar-
chetype). She spoke with
Marc Myers.

When I was 8, my father

wasnt well. We didnt have
air conditioning, so late one
night, while I was asleep, my
mother helped him out to
the porch off my bedroom.
Oh dad, be quiet, I
shouted. You woke me up.
He died later that night of a PARENTS RETREAT
heart attack at age 42. A home with a place
My last words to my fa- to escape the kids M3
ther and my tone have hung
JESSICA SAMPLE FOR THE WALL STREET JOURNAL

over me my entire life.

Losing my father so sud-
denly taught me to seize op-
portunity. I also never liked
to leave disagreements unre-
solved. Subconsciously, I was
afraid the other person
might die before we patched
things up.
I was born in Chicago. My
family first lived in an apart-
ment on South Merrill Avenue WINE AND DINE
and then moved to a house on REEL WOMAN Sherry Lansing in her Mediterranean-style home in the Bel Air section of Los Angeles. The former head of An old Vienna tavern,
Please turn to page M4 Paramount Pictures started her career as a model and actress before becoming a script reader, producer and senior executive. now a luxe home M5
 For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
M2 | Friday, July 7, 2017 THE WALL STREET JOURNAL.

MANSION
PRIVATE PROPERTIES

Lake Tahoe Estate Asks $75 Million

HOUSTON
HOME BUILT
FOR A PRINCE:
$20 MILLION
A Houston home built in the
1980s for a Saudi prince is
CLOCKWISE FROM TOP RIGHT: TODD KRAMPITZ/TK IMAGES; MARC FAIRSTEIN; JEFF DOW (2)

seeking $20 million.

A sprawling estate on the
north shore of Lake Tahoe,
where hillside homes are con-
nected to each other by two
glass funiculars on heated
tracks, is on the market with
an asking price of $75 million.
Known as Crystal Pointe,
the 5.14-acre waterfront prop-
erty in Crystal Bay, Nev., has
525 feet of lake frontage. Be-
tween the main house, guest-
house, beach house and care-
takers apartment there are
16,232 square feet of living
space, eight bedrooms and 13
fireplaces.
The sellers are Stuart and
Geri Yount. Mr. Yount, 68, is
the chairman and CEO of For-
tifiber, a family-owned busi-
ness that his father started in
1939 that manufactures build-
ing products.
The Younts said they
bought the land in 1994 and
spent five years building the
main house, which was de-
signed to fit into the terrain.
Mrs. Yount, 68, said she de-
termined the color palette
from sticks and stones on the
property; some bright white-
colored granite boulders were
painted to match more weath-
ered counterparts.
The couple said they fin-
ished building the beach
house, a two-bedroom guest-
house closest to the water,
last July. It took 10 years and
two months to get the per-
mits, and construction took
another 2 years, they said.
There is no road access to the
beach house, so all the materi-
als had to be brought in by
barge or helicopter; it is acces-
sible via stairs or the funicular.
Tucked into the landscaping
are a collection of animal stat-
ues that come with the home.
A carved redwood wolf stands
on a boulder, while an eagle
flying overhead is suspended
by cables.
When the couple had to re-
move an approximately 100-
foot-tall tree, they left the bot-
tom 35 feet and an artisan
spent three years carving
bears, raccoons and squirrels
into it, said Mrs. Yount.
The Younts are selling as
they plan to downsize, though
they will stay in the area, they
said. Shari Chase, Susan
Lowe, Kerry Donovan and
Mike Dunn of Chase Interna-
tional share the listing.
Sarah Tilton
The property, in the citys
exclusive River Oaks enclave, is
one of the most expensive
homes for sale in the area, al-
though listing agent Walter
Bering of Martha Turner So-
thebys International Realty said
the area has seen home sales
above $20 million in the past.
It was built around 1986 by
Prince Abdulrahman bin Faisal,
son of the late King Faisal and
brother of former Saudi Foreign
Minister Prince Saud al-Faisal,
according to J. M. Little, a
Houston attorney who repre-
sented the prince at the time.
Mr. Little said the prince was
involved in commercial real es-
tate in Houston in the 1980s
and needed a place to stay
while in town. The Faisal family
couldnt be reached for com-
ment. The current owners are
Nijad and Zeina Fares, who
bought the house in 2007.
Nijad Fares is the son of Is-
sam Fares, the former deputy
prime minister of Lebanon and
head of Wedge Group, a Hous-
ton-based international invest-
ment firm with interests in real
estate, manufacturing and oil-
field services. Ms. Fares said
they are selling because, with
their children now beginning to
leave for college, the house is
starting to feel too big. She
said the couple will stay in the
Houston area but may build a
house on a smaller scale.
Candace Taylor

JAMES CAGNEYS LONGTIME FARM FOR SALE

Actor James Cagneys long-
time farm on Marthas Vineyard
is for sale for $13.5 million.
In Chilmark, the roughly 69-
acre property includes the 18th-
century wooden farmhouse
where the Oscar-winning actor
lived, as well as a guesthouse,
studio and barn.
The property has deeded
beach access. Mr. Cagneys for-
mer home has a number of
original details, but it needs
extensive renovations, as do
the other structures on the
property, according to listing
agent Meg Bodnar of Tea Lane
Associates.
Mr. Cagney bought the
landthen with more acreage
in 1936, and spent summers
there with his family for de-
cades, according to his autobi-
ography Cagney by Cagney.
The Vineyard represented for
me the place where I could al-
ways go to find the freedom
and peace one didnt find pre-
vailing on the Hollywood turf,
he wrote. Mr. Cagney, who was
known for 1930s and 40s
gangster films, also owned a
home in Edgartown on Mar-
thas Vineyard.
The Cagney family sold the
farm in the 1980s, and it was
later used as a commune, said
Ms. Bodnar. Boston restaura-
teurs Patrick Lyons and Sean
Gildea bought the property for
$4.1 million in late 2012.
Mr. Lyons and Mr. Gildea
said they bought the property
under the name You Dirty Rat
LLC in homage to Mr. Cagney.
They planned to build vacation
homes on the property, which
can be split into several parcels.
But Mr. Lyons said he and his
wife have since decided to keep
their current Vineyard home,
while Mr. Gildea ended up buy-
ing a different property.
Candace Taylor

THE

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FOOTBALLS PAUL KRUGER LISTS MULTISPORT COLORADO ESTATE

New!
Professional football player
Paul Kruger is putting his mul-
tisport Colorado estate on the
market for $8.5 million, a 57%
markup from what he paid for
it less than a year ago.
Located in Evergreen, an up-
scale community about 35
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ple waterfalls integrated into
the landscaping. On the
grounds, a gymnasium building
measures about 6,300 square
feet and contains a half bas-
ketball court, an exercise room,
lockers and a sitting room. Mr.
Kruger said when hes at the
property he uses the basketball
court to go shoot all the
time, but in the long term he
had planned to convert the
building into storage for cars,
snowmobiles and other fun
toys. The property also has a
stable for horses, with an up-
per level containing a two-bed-
room apartment.
Mr. Kruger, 31, bought the
property in January for $5.4
million. As for the $8.5 million
asking price, Ms. Henderson
said the Krugers have up-
graded the property, and the
furniture is included in sale.
She also noted the estate was
listed for $18.75 million in
2009, but sold for far less.
The Krugers, who bought the
property from a subsequent
owner, also got a really good
deal, Ms. Henderson said.
Mr. Kruger said he and his
wife, Jacqueline, bought the
house planning to live there
long term. But with his wife
now expecting their first child,
he said, they plan to move to
Cleveland to be closer to fam-
ily. A lot changed for us in a
short period of time, he said.
Mr. Kruger is a free agent
after playing last season as a
defensive end for the New Or-
leans Saints. He signed with
the Saints in the summer of
2016 after being released by
the Cleveland Browns, who had
signed him to a five-year,
$40.5 million contract in 2013.
Candace Taylor

 See more photos of notable homes at WSJ.com/Mansion. Email: privateproperties@wsj.com

 For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
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THE WALL STREET JOURNAL. NY Friday, July 7, 2017 | M3

MANSION
BALANCE SHEET

An Escape for Mom and Dad

A London couples renovation includes a private apartment where they can take a break from the chaos

BY RUTH BLOOMFIELD
COSTS
WITH THREE CHILDREN
Demolition,
ages 13 to 27and three exu-
structural work
berant dogs, it is little won-
der that Caroline and Martin
Cruddace occasionally feel
$355,700
the need to seek a little Electrical, plumbing
sanctuary. So when renovat-
ing a rundown Edwardian
villa in London, they made
$78,000
creating a calm, private Flooring
apartment to escape the
domestic maelstrom central $32,300
to their plans.
The Cruddaces bought Kitchen

$39,000
their 3,065-square-foot
house in the north London
neighborhood of Highgate in
Bathrooms
2011 for 1.875 million, or
$2.43 million. When they
moved in with Mrs. Crud- $97,000
daces two sons, Josh and Windows
Harry Hogan, now 27 and 21,
and their daughter Amelie,
now 13, it had a cramped liv-
$32,300
ing room and kitchen in the Woodwork, floating
dark basement. There were staircase
nine bedrooms on the floors
above. It was not an easy
house to live in, said Mrs.
$55,000
Cruddace, an artist and pho- FAMILY AFFAIR Above, from left to right, Decor
tographer. Martin Cruddace, Josh Hogan, Harry Hogan,
A friend Mrs. Cruddace Caroline Cruddace and Amelie Cruddace. $56,000
had met through the chil- Clockwise from below, the rear facade, a sit-
drens schools, the actress ting room and Amelies bedroom. Landscaping
Gwyneth Paltrow, recom-
mended her (then) brother- $78,000
in-law Alexander Martin,
founder of Alexander Martin Professional fees
Architects, to help with the
redesign. $103,000
Key to the design was giv-
Value-added tax
ing the grown-ups some
space of their own. We have
a lot of the kids friends
$185,000
over; we are a family which
TOTAL
loves parties and entertain-
ing, said Mrs. Cruddace.
Mr. Martins solution was
$1.1 million
to demolish the double ga-
rage, which stood beside the
main house and build a
three-story wing in its place.
Its ground floor would fea-
ture a large, modern kitchen
with folding-glass doors that
lead directly to a back patio.
Above would be a split-level
master suite with a bath-
room, dressing room, yoga
room, bedroom and terrace.
The original part of the
house could then be recon-
figured with a living room
and dining room, and six
bedrooms. The basement,
once the main communal
area, now contains a utility
room and TV room. kitchen is lofty and light, princess dressing table keep
Work on the yearlong with high ceilings and views things suitably girly. Mrs.
project began in 2014. The of the front and backyards. Cruddace also had some fun
family lived in the house Ceramic floor tiles are pale, with the spare roomsone
while the garage was demol- and the cabinetry is painted has wallpaper printed with
ished and the new wing off white. Almost the only tiny, vividly colored birds
built. Halfway through, how- splashes of color are the and her own office for
ever, the chaos became too denim-blue kitchen island which she mixed the shade
much for Mrs. Cruddace and and orange seat cushions. of vivid turquoise herself.
she, Amelie and the dogs de- The master bedroom This project added 840
camped to the familys vaca- suite is where Mr. Martins square feet to the house and
tion home in Devon. It was taste coexists with that of cost about $1.1 million. The
insanity, she said. his client (Mr. Cruddace ad- couple is sanguine about the
Once the structure of the mits he left all design deci- cost, partly because they
house was in place, design- sions to his wife). A luxuri- have no intention of selling
ing the interiors could begin. ously large bathroom and a and partly because reno-
The older section reflects yoga studio take up most of vated homes in their neigh-
Mrs. Cruddaces eclectic, col- the lower level. An elegantly borhood routinely sell for
orful tastes and affection for minimal floating staircase $2.5 million to $3.9 million.
vintage and industrial style. leads to the bedroom, fur- Today Mr. Cruddace, who
The new section embodies nished with only a bed, side is the chief executive of lei-
Mr. Martins more austere vi- tables and a chair. The pal- sure company Arena Racing
sion of clean lines and a re- ette is entirely neutral, but Co., says he is glad he has
stricted, natural palette. a little color finds its way had the experience of reno-
In the basement TV room, onto the terrace in the form vating a house but wouldnt
for example, Mrs. Cruddace of retro turquoise chairs. want to do it again.
opted to paint the walls a All three children have His wife, on the other
deep, charcoal blue, giving bedrooms in the original hand, glows at the idea of
the room a clubbish, inti- house, and Amelies passion taking on a new project. I
mate feel with velvety mus- for horses is reflected in the would love, love to do an-
tard-yellow sofas. wallpaper featuring a herd other house. Just not live
By contrast the new of grays. Fairy lights and a there at the same time.
DYLAN THOMAS FOR THE WALL STREET JOURNAL (5)

CLUBBISH FEEL The basement TV room with its deep blue walls and mustard-colored sofas.
 For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
M4 | Friday, July 7, 2017 THE WALL STREET JOURNAL.

MANSION
CHILL OUT
Under-counter refrigerators can
slide open like a drawer. Liebherrs
CLOCKWISE FROM TOP LEFT: HENRYBUILT; LIEBHERR APPLIANCES; DCS BY FISHER & PAYKEL; SUB-ZERO GROUP; SCANOMAT

24-inch model, shown at right, is

available at 32- and 36-inches
high. Released 18 months ago, it
is sometimes used as a primary
fridge in Europe, said Mark Livin-
good, the German companys
eastern regional sales manager in
the U.S. Sub-Zeros roughly 34-
by-24-inch model comes in both
fridge and freezer versions. Fisher
& Paykels CoolDrawer measures
roughly 36 by 25 inches and has
five temperature settings.
Prices: Sub-Zero, $4,040; Lieb-
herr, $2,000; Fisher & Paykel,
$2,309-$2,518

ELEMENTS

COMPACT KITCHENS
More kitchen appliances and fixtures are coming in smaller sizes to
accommodate tight spaces in apartments, wet bars and butlers pantries

If mini-fridge conjures up apartments. design, said Jean Brownhill,

images of college dorm rooms, Most appliances can be founder of Sweeten, a service
TOTAL PACKAGE listen up. More pint-sized ver- mounted flush with countertops that matches renovators and
From its production facility in Seattle, Henrybuilt designs, manufactures and sions of refrigerators, as well as or come panel ready, meaning general contractors. Oftentimes
ships entire kitchen systems. Space-saving features include a cutting board that dishwashers, stoves and sinks, the front can be outfitted with it does mean opting for a
fits over a cooktop when not in use and backsplash-integrated knife racks, are popping up in luxury homes. matching cabinetry. Sinks are smaller footprint.
shelving and colander hooks. The holistic approach makes the space feel more Demand for petite appliances smaller in diameter but just as Here is a sampling of scaled-
refined and functional, said Chris Barriatua, the companys executive director. has been driven, in part, by baby deep. And designers are opting down appliances and fixtures.
Price: $80,000 to $120,000 for a complete, small kitchen boomers downsizing to luxury for a clean look, often forgoing Width and height dimensions
apartments. hardware, to make spaces seem are approximate, and prices
In larger homes, kitchenettes bigger and more sophisticated. dont include installation. Check
EASILY CAFFEINATED and wet bars are increasingly We definitely see people with the manufacturer for speci-
Made by Copenhagen-based Scano- found in master suites, media choosing to be much more fications.
mat, the TopBrewer is a faucet- rooms, staff quarters and guest thoughtful about their kitchen Leigh Kamping-Carder
shaped espresso maker built into
the countertop. Hidden below is a
fridge to store milk. The whole unit SQUEAKY
takes up about the same space as a CLEAN
dishwasher, said export manager Auckland-based
Sebastian Vibe-Petersen. The device Fisher & Paykel
is operated via smartphone or tablet makes a drawer-
and comes in five finishes. style dishwasher.
Price: $11,000 At roughly 24
inches by 16
inches, the small-
est model accom-
modates seven
place settings and
is small enough to
allow for storage
HOT SPOT underneath. Mod-
Wolf has eight different 15-inch- els come in black,
wide modules, one shown above, of- white, stainless
fering electric, gas or induction steel or panel-
burners, as well as more fanciful ready.
items like a deep fryer or steamer. Price: Fisher &
Fisher & Paykel offers a 12-inch- Paykel single Dish-
wide, two-burner induction cooktop. Drawer, $649 to
Price: Wolf, $1,100 to $1,325 for $749
cooktop modules; Fisher & Paykel,
$1,099

SHERRY LANSING
distance and we divorced. It
was a tough time.
I taught high-school Eng-
lish and math for a while, and
Continued from page M1 the front and back, a stoop, a an area in the back for a modeled. Then I landed a few
South Creiger Avenue a year driveway and garage. We swing set where he pushed movie roles in the late 60s
before my father died. also had large closets. Id me. My father adored me. He before realizing that acting
It was a middle-class, two- hide out in them when I gave me unconditional love, made me uncomfortable. I
story, three-bedroom brick wanted quiet. and we were very close. didnt like being anyone but
house with small yards in My father, David, set up My most vivid memory of myself. I also realized I had
my father was watching si- little talent for acting.
lent movies with him in a In 1971, producer Ray
nickelodeon theater at a lo- Wagner hired me to be a
cal museum. I loved seeing script reader at MGM. At the
him laugh. time, this was an alternate
My father was in real es- path for ambitious women in
tate and owned a handful of Hollywood.
P DCASTS rental buildings. After he I was a fast reader and
died, two men came to the could synopsize what I read
house and told my mother, and explain why a script was
Margot, not to worry, that worthwhile or not. Four
Look Behind the Numbers they would run his business.
My mother said, No you
years later, I was MGMs ex-
ecutive story editor.
wont. Youll teach me and Ill At 35, I became president
run it. Mom learned every- of production at 20th Cen-
thing she needed to know and tury Fox and then left to be-
worked hard. She became my come a producer. In 1992, at
biggest role model. At 32, she 47, I became the head of Par-
was a widow and strong. I amount Pictures.
SHERRY LANSING

used to go with her to collect When I got the job, I

the rents. She taught me not
to be a victim. Shed say,
Pull up your socks, which
meant, Go for it.
After my father died, I so
wanted life to be normal
again. I hoped my mother
would marry every man she
dated. I wanted a dad more
than anything.
In 1956, when I was 12 and
my sister, Judy, was 6, my
Join Miriam Gottfried for an in-depth look at the stories mother married Norton Lan-
driving global business. Get incisive analysis of the sing, a successful furniture
companies, sectors and securities making news with manufacturer. Norton was a
WSJs Heard on the Street podcast. widower who had two chil-
dren, Andrea and Richard.
Listen now at WSJ.com/listenHeardontheStreet We all moved in together.
In my teens, I fell in love
WSJ Podcasts are also available on iTunes, Amazon Echo, Spotify, iHeartRadio,
Google Play Music and Stitcher
with the movies. I went to the
Hamilton Theatre as often as
I could. I loved the stories
and performances, and set my
sights on Hollywood.
My parents wanted me to
go to an all-girls private high
2017 Dow Jones & Co., Inc. All rights reserved. 2DJ4864
school, but I insisted on a
RIDING HIGH Sherry Lansing in the late 1940s on a prop horse
outside her grandmothers home in Chicago.
co-ed public school. I applied
to the University of Chicagos
Lab School, a spectacular,
nonjudgmental school that
valued intellect rather than
status.
You had to take a test to
get in, and I took mine while
I had the chicken pox. I
didnt want to miss an op-
portunity. I was accepted.
My junior-year math
teacher was most influential.
He promised me that once I
got math, the subject would
be thrilling. He helped me
get it, and I ended up loving
math.
By the time I was a sopho-
more, I was 5-foot-10 and
skinny. After my mother en-
couraged me to apply for a
modeling job at the Carson
Pirie Scott department store,
I was hired and modeled in
shows as the young bride.
At Northwestern Univer-
sity, I studied for a teaching
credit in English and math,
and I minored in theater.
During my junior year, in
1964, I married.
After graduation in 66, my
husband and I moved to Los
Angeles. My husband was
studying to be a doctor and
did his internship at Cedars
of Lebanon Hospital, so he
was gone most of the time.
Then he was drafted and
was sent to South Korea. The
marriage didnt survive the
thought back to that 8-year-
old girl sitting next to her
father at the movies. I
wished my father had been
alive. I missed him terribly.
Today, my husband and I
live in the Bel Air section of
Los Angeles. Our house is a
three-bedroom Mediterra-
nean that sits on top of a
hill. We moved in 10 years
ago after renovating.
The house is comfortable
and isnt the least bit intimi-
dating. Everyone who comes
over plops down in our over-
stuffed furniture and feels at
home.
I have a ton of photos of
my father and mother
around the house. I wish I
had his old opera 78s. My
husband, movie director Billy
Friedkin, also directs operas.
Its as if my father is alive
with us today through the
music.
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
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THE WALL STREET JOURNAL. NY Friday, July 7, 2017 | M4A

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For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
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M4B | Friday, July 7, 2017 NY THE WALL STREET JOURNAL.

GENEROUS FARMERS GENEROUS HELPINGS

ON LONG ISLAND ON STATEN ISLAND

Hey New York, nearly 1.4 million people in our city face hunger.
Help City Harvest rescue excess food for our neighbors in need.
Donate at cityharvest.org.

2016 City Harvest

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THE WALL STREET JOURNAL. Friday, July 7, 2017 | M5

MANSION

ROIS & STUBENRAUCH FOR THE WALL STREET JOURNAL (4)

ONCE A TAVERN The centuries-old building, below, now a seven-bedroom modern home, is for sale for about $3.97 million. The dining area, above, of the four-level home.

LIVING HISTORY

A Viennese Gems Tipsy Past

A wine tavern in the citys village-like Grinzing has been transformed into a luxury home

BY J.S. MARCUS
RETIRED AUSTRIAN jewelry
designer Dieter Bakalarz-
Zkos knows a diamond in
the rough when he sees one.
When he looked at a dilapi-
dated historic wine tavern in
Viennas Grinzing neighbor-
hood, in the Alpine foothills
above the city, he saw the
potential for a modern lux-
ury villa.
The building bore witness
to centuries of Viennese his-
tory, roughly taking its pres-
ent form in the late 1600s.
Parts of the buildings foun-
in 1998 for about $525,000,
after it had fallen into bank-
ruptcy. He then invested
about $1.7 million to convert
the architectural hodge-
podgeU-shaped, three sto-
ries with a sprawling base-
mentinto a 6,500-square-
foot, seven-bedroom home
with five bathrooms and two
powder rooms. He created
the home for his wife and
four children, now grown.
The property is for sale
for 3.5 million, or about
$3.97 million.
The transformation in-
cludes, for example, under-
floor heating and an outdoor
historic zone.
Mr. Mahringer says the
home was likely used as a
residence and workplace for
centuries by farmer-wine-
makers, who would have
grown grapes in Grinzings
nearby vineyards and then
made wine on the premises.
Shortly after buying the
property, Mr. Bakalarz-Zkos
had the house examined by
an expert affiliated with a lo-
cal museum. The examiner
found what he believed to be
ancient Roman traces in the
basement.
Mr. Mahringer, however,
argues that the basement is
distant memory, Viennese in
the early 19th-century
started to see the Grinzing
vineyards and taverns as a
pleasure destination. A few
houses down from Mr. Baka-
larz-Zkos, a plaque com-
memorates composer Franz
Schuberts many visits to the
village, incorporated into the
city in the 1890s.
After World War II, Grinz-
ing became a hot spot, and
by the 1950s, the future
Bakalarz-Zkos home, then
called Das Alte Haus (the Old
House), had become a celeb-
rity stomping ground, says
area native Michael Lenzen-
hofer. It was more of an up-
scale restaurant than a tradi-
tional wine tavern.
Celebrities arrived in Grinz-
ing in Rolls-Royces, he says.
The establishment likely
began a spiral downward in
the 1980s, in conjunction
with a change in ownership
and a courting of the mass-
tourism trade.
These days, Grinzing is
being transformed by rising
real-estate prices. The num-
ber of Viennese homes sold
at or above 1 million has
jumped more than 50% since
2012. Mr. Bakalarz-Zkos
thinks the time is right to
pass its value onto his chil-
dren. Elfie Zipper of Viennas
Otto Immobilien is handling
the sale.

HIGH SCHOOL WILL

dation could be much older, pool. A cluster of south-fac- probably no older than the
though exactly how much ing rooms where the taverns 16th century, when Grinzing,
older is disputed. A guest clientele once likely drank then a small village miles

NEVER BE THE SAME

book, however, shows the
tavern had special allure in
the mid-20th century, wel-
coming celebrities such as
Liz Taylor and Walt Disney.
I was looking for a chal-
lenge, Mr. Bakalarz-Zkos,
76 years old and a Vienna
native, says of his purchase.
Developers have bought
similar taverns to convert
into million-dollar condos,
adds Mr. Bakalarz-Zkos,
but I wanted to turn mine
into a home.
He bought the building,
set on a one-tenth acre lot in
Grinzings village-like core,
white-wine spritzers (a Vien-
nese favorite) became a dou-
ble-height salon, decorated
with ornate antique furni-
ture from Mr. Bakalarz-
Zkoss family, a clan of
Hungarian aristocrats long
settled in Austria.
The home is one of sev-
eral noteworthy buildings in
the heart of Grinzing, says
art historian Paul Mahringer,
of Austrias Federal Monu-
ments Authority, now in the
process of designating the
Bakalarz-Zkos home and
dozens of surrounding struc-
tures as part of a protected
from the walled city, was
first caught up in the Otto-
man Empires expansion into
central Europe.
Grinzing was largely de-
stroyed twice, adds Walter
hlinger, a historian at Vi-
ennas Wien Museum, citing
Viennas two major Ottoman
sieges of 1529 and 1683.
The oldest depiction of
Grinzing shows the village in
flames, he says of a 16th-
century rendering of the
1529 battle, now part of the
museums collection. Most
Grinzing structures were de-
stroyed, he adds, but the
cellars survived, along with
the wine that farmers hid
from marauding armies.
The Wien Museum archive
contains several depictions
of what became the Baka-
larz-Zkos home and court-
yard.
Both Mr. Mahringer and
Mr. hlinger believe the
home likely was built in the
years following the final
1683 defeat of Ottoman
troops, after which the bor-
der between the Habsburg
and Ottoman empires moved
to southeastern Europe, leav-
ing Vienna and its environs
to redevelop.
When Mr. Bakalarz-Zkos
bought the property, the
basement had an earthen
floor and was filled with de-
bris. He made the space into
a rec room. My children
could play music as loud as
they wanted, he says.
One part of the project
took far longer than ex-
pected: the restoration of a
Madonna fresco on the front
of house, overseen by a team
from Viennas Academy of
Fine Arts and partly paid for Join the biggest stars in entertainment for an

SEPT 8
by the Austrian government. unforgettable, live special, as we come together to rethink
Claudia Riff, the Viennese
art restorer who supervised American high schools. Visit XQSuperSchool.org/live
the nearly two-year project,

8 7C
to get a sneak peek at the future of education.
says the fresco dates to
about 1800. Today, the
fresco, showing a smiling,
blue-draped Virgin, is a
LIGHTEN UP The courtyard was laid with new paving stones, standout feature of the area. XQ Institute and the Entertainment Industry Foundation (EIF) are 501(c)(3) organizations.
top. The kitchen has sandstone floors and a utility island, above. With the Ottoman sieges a
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
M6 | Friday, July 7, 2017 THE WALL STREET JOURNAL.

MANSION
JUMBO JUNGLE | ROBYN A. FRIEDMAN

BORROWERS ADJUST THEIR ATTITUDES

Most people opt for a fixed-rate mortgage, but those who dont plan to stay long in the same home should consider an adjustable-rate loan

Over 90%
of mortgage
applicants
opt for a
fixed-rate
loan. But
millennials
buying homes are increas-
ingly opting for adjustable-
rate mortgages instead.
Because interest rates on
ARMs tend to be lower than
those on fixed-rate mort-
gages, borrowers can save
hundreds of dollars in
monthly payments. For ex-
ample, according to personal
finance website Bank-
rate.com, the average inter-
est rate on June 30 for 5/1
jumbo ARMs, in which the
rate is locked for five years
and then adjusts annually,
was 3.43%, compared with
4.01% for a 30-year, fixed-
rate jumbo loan.
In this case, if you borrow
$700,000 at 4.01%, the
monthly payment of princi-
pal and interest is $3,345.95.
The same loan at 3.43%

would have a monthly pay-
ment of $3,116.02 for the
first five yearsa saving of
$229.93 a month.
ARMs are popular with
millennials because these
borrowers are more mobile,
says John Walsh, chairman
of Milford, Conn.-based Total
Mortgage Services, where
millennials applying for 7/1
ARMS increased 18% this
year through June 15, com-
pared with the same period a
year ago. Theyre not going
to work at GE for the next 30
years, he says. A lot of
them will move to accelerate
their career path, so theyre
not going to stay in the
house as long.
Despite the potential for
savings, the vast majority of
borrowers apply for fixed-
rate loans. In April, 91.5% of
all mortgage applications
were for fixed-rate mort-
gages, according to the Mort-
gage Bankers Association.
The majority of our
jumbo customers are at fixed
rates because theyre still
low, says Ray Rodriguez, re-
gional mortgage sales man-
ager for the metro New York
market for TD Bank.
Right now you can still
get a jumbo fixed-rate loan
for under 4%. But once it
gets closer to the high fours,
youll see a kick in the num-
ber of people looking for ad-
justable-rate mortgages.
Experts say the best way
to select an ARM is to match
the fixed period to the time
you plan to be in the home.
A 3/1 adjustable will provide
a rate advantage, but if the
borrowers think theyre go-
ing to stay in their house for
a longer time, then I would
go with a 5/1 because that
gives them more stability,
says Meredith S. Weil, chief
operating officer of Third
Federal Savings and Loan As-
sociation in Cleveland.
Conversely, for borrowers
planning to live in their
homes for a shorter period, a
3/1 might make more sense
because that will come with
a lower rate.
A few things to consider:
Assume rates will go
up. Although interest rates
have been relatively stable
recently, if they tick up, so
will your mortgage payment.
Its really about the toler-
ance for interest-rate risk,
says TDs Mr. Rodriguez.
You have to go in assuming
upfront that rates are going
to rise. You could be in for a
nice surprise if they go
down, but more often than
not, youre not going to get
that surprise.
Consider the caps.
When rates reset after the
initial loan period, most
ARMs are capped at 2% per
adjustmentwhether rates
increase or decrease. Theres
also a 6% cap on increases
over the life of the loan. Ms.
Weil says that under the
qualified-mortgage rules of
the 2010 Dodd-Frank Act,
lenders must consider ARM
borrowers at the highest po-
tential rate over the first five
years of the loan, rather than
the initial rate, so that helps
to ensure borrowers can af-
ford the loan if rates in-
crease.
CHRIS GASH
Learn the lingo. Under-
stand how your ARM works.
Each ARM has not only a
cap, but also an index, which
is the benchmark interest
rate upon which adjustments
are based. That index is com-
monly the prime rate or Li-
bor. Theres also the mar-
ginthe percentage interest
rate, commonly 2%, added to
or subtracted from the index
when the loan adjusts. The
index benchmark is variable,
but the margin is constant
throughout the life of the
mortgage. If youre not sure
how the loan works, ask your
lender or financial adviser.

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THE WALL STREET JOURNAL. NY Friday, July 7, 2017 | M7

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Coach Real Estate Associates, Inc. Lila Delman Real Estate International Bahamas Realty Limited WEICHERT, REALTORS-Coastal Properties Laffey Fine Homes International
Elizabeth Alessio 631.664.6849 Melanie Delman 401.284.4820 James Bernard 242.396.0046 Jane Grant 843.505.1405 Paul Tyree 516.426.5224

POrtsMOuth, ri | $2,950,000 dArien, ct | $2,800,000 st JOhns, Fl | $2,750,000 delrAy BeAch, Fl | $2,650,000 nOrth PAlM BeAch, Fl | $2,495,000
WEB ID: CVUZ4 WEB ID: KPAB4 WEB ID: DMOY4 WEB ID: IWGC4 WEB ID: ICJQ4
Waterfront access at Sandy Pt. 186 ft of Incomparable custom residence with spec- Gated Riverfront Estate. Custom contempo- Keyes Company Light filled 4BR 4BA garden home with pool
beach frontage with panoramic waterviews. tacular setting amid gardens and open fields. rary design w/7,100+sf on 2.3+ acres. Elaine Ward 352.665.6568 in prestigious gated golf community.
Lila Delman Real Estate International Halstead Real Estate Watson Realty Corp Lost Tree Realty
Melanie Delman 401.284.4820 Mary Lopiano 203.912.4694 800.257.5143 Peter Erdmann 561.329.2383

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MOunt PleAsAnt, sc | $1,995,000 AtlAntA, gA | $1,970,000 kiAWAh islAnd, sc | $1,900,000 tequestA, Fl | $1,850,000 West dennis, MA | $1,700,000
WEB ID: NPXQ4 WEB ID: GROY4 WEB ID: KLZQ4 WEB ID: IURT4 WEB ID: WGSC4
Beautiful custom home overlooking the river. Classic garden, 1.39 lush acres in Buckhead, Private, 3.74 acre home-site with extended Light bright 3BR estate home in Jupiter Hills Beautiful water views and private deep water
Dream kitchen. 2-car gar. Guest suite. room for a pool / Simply beautiful home marsh views. Village, tranquil sparkling lake view. dock in the Fingers of West Dennis.
Carriage Properties Beacham & Company, REALTORS Carriage Properties Lost Tree Realty Robert Paul Properties
Judy Tarleton 843.729.2255 ANNE POWERS 404.906.7982 Kay Halsey 843.729.4376 Denice Sexton 561.662.8344 Robert Kinlin 508.648.2739

POrt st. lucie, Fl | $1,500,000 sOuthPOrt, nc | $1,475,000 BluFFtOn, sc | $1,295,000 sOuthPOrt, nc | $1,074,950 AtlAntA, gA | $999,999
WEB ID: BXGV4 WEB ID: FZBZ4 WEB ID: PCWQ4 WEB ID: EZSB4 WEB ID: EYIT4
Private 5BR,5.5BA,4CG; -acre, cul-de-sac. Unparalleled quality and privacy on 10 acres Exquisite Southern Equestrian Estate 4BR 19th cen historically significant home, restored, Modern design, elevator and outdoor kitchen
8,800+sf, finest materials & design. just an easy bike ride from waterfront. +office+bonus, pool, spa, barn on ~3 acres expansive views of Cape Fear River. included. Model unit available to view.
Illustrated Properties-Luxury Collection Margaret Rudd & Associates WEICHERT, REALTORS-Coastal Properties Margaret Rudd & Associates Beacham & Company, REALTORS
Cinda Glor 561.313.1396 Kay Jolliff 910.457.5258 Alison Melton 843.290.3640 Kay Jolliff 910.457.5258 Crista Partlowe 678.469.4050

2017 Luxury Portfolio International. Offering is subject to errors, omissions, change of price, or withdrawal without notice. All information considered reliable; however, it has been supplied by third parties and should not be relied on as accurate or complete. Equal Housing Opportunity.
 M8 | Friday, July 7, 2017 NY/NE THE WALL STREET JOURNAL.

MANSION
RELATIVE VALUE

FOR SALE: A GLIMPSE OF CHRISTINAS WORLD

Three properties for sale in Cushing, Maine, where painter Andrew Wyeth spent his summers

FROM CENTER: SARAH SZWAJKOS/DAMN RABBIT STUDIOS (4)

KATHERINE SFEIR (2)

$1.395 million $1.295 million $1.05 million

Stevens Lane, Maple Juice Cove Partner Lane, Burton Point Partner Lane, Burton Point
Four bedrooms, two full bathrooms, one half-bath Three bedrooms, three bathrooms, one half-bath Three bedrooms, three full bathrooms, one half-bath

This 3,900-square-foot, 1999 contemporary Cape home has in- The 2,994-square-foot main house, by Stephen G. Smith Archi- This two-story, 3,200-square-foot home on 2.5 acres was built in
floor radiant heat on its ground level. It is on 5 acres, including tects of Camden, was built in 2000 on 2.65 acres. The home is 1972 and renovated in 1995. The bayfront home has an attached
three buildable lots, with a commercial-grade dock and float. The furnished and features a two-story granite fireplace. A deck along two-car garage, a boat barn and a boat house over the water with
home has a gourmet kitchen and hardwood floors throughout. the length of the home has a built-in hot tub with water view. a deepwater dock and a float. The lot is near Olson House, the
There is a two-car attached, heated garage and a stone patio. The The property has a private deepwater dock and a two-bedroom, house made famous by Wyeths Christinas World. Agent: George
property has a storage barn. Agent: Brian Wickenden, Legacy two-bath guesthouse, plus a garage with a room above. Agent: Wheelwright, Legacy Properties Sothebys International Realty
Properties Sothebys International Realty Leslie Tranchell, Legacy Properties Sothebys International Realty Stephanie Capparell

ADVERTISEMENT

Distinctive Properties & Estates

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

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M10 | Friday, July 7, 2017 THE WALL STREET JOURNAL.

MANSION

MY VERY OWN VERSAILLES

Continued from page M1
The allure of Versailles was no
accident: Louis XIV created the
massive palace as a way to show-
case his power and draw attention
to the glories of France. There
was an enormous wow factor
that Louis was aiming for, Mr.

FROM TOP: CHAD KING; EMILY WILSON FOR THE WALL STREET JOURNAL (2); RAPHAEL KRYSZEK (2); ASSOCIATED PRESS
Spawforth says.
For many of those who choose
to build homes inspired by Ver-
sailles, the palace represents the
pinnacle of success and achieve-
ment, and the culmination of a
lifelong dream. The costs of this
dream are considerable: Not only
is building a modern-day Versailles
very expensive, it can upset neigh-
bors and be difficult to sell.
Its a little bit over the top,
concedes Jean Manouch Pierre, a
businessman who bought the Ver-
sailles Penthouse at the Metropolis
condominium in Las Vegas last year
for about $2.8 million. But this is
what working hard is all about.
Mr. Pierre says his opulent
condo was given its Versailles look
around 2005 by a previous owner.
It has 30-foot-high ceilings and
cabinets trimmed with gold leaf. A
chandelier hangs above a curving
marble staircase with 18-karat gold
detailing. A commercial real-estate
investor in his mid-50s who is
originally from Iran, Mr. Pierre
bought the property at auction af- ALL YOURS This Los Angeles home was inspired by Le Petit Trianon, Marie Antoinettes retreat on the grounds of Versailles. It is going on the market.
ter it had failed to sell at its ask-
ing price of $4.88 million; he says
he was so amazed by photos of the
condo that he bought it without
ever visiting. The first time he saw
the property in person, I was ex-
tremely emotional, he adds, not-
ing that the purchase felt like an
embodiment of his hard work and
success after coming here with
nothing.
To make the condo even more
Versailles-like, Mr. Pierre got per-
mission from the homeowners as-
sociation to install fireplaces, and
plans to complete the dcor with
period-appropriate antiques or
replicas.
To Patrice Tarsey, Versailles is
the most beautiful palace ever
built. So in 1992 when she saw a
newly built house in Los Angeles
that was inspired by Le Petit Tri-
anon, she jumped at the chance to DREAM COME TRUE Jean Man-
own it. The roughly 11,000-square- ouch Pierre, a commercial real-estate
foot home in Holmby Hills has investor, in his Versailles Penthouse
wrought-iron and marble balconies at the Metropolis condominium in Las
and gold-leaf moldings throughout. Vegas. Its a little bit over the top, he
In the entry there is a 46-foot-high concedes. But this is what working
dome, with twin rose marble circu- hard is all about.
lar staircases topped by an 18th-
century Baccarat crystal chande-
lier. In the library and living room
the cherrywood floors, in a Bor-
deaux pattern, are a copy of the
floors in the Hall of Mirrors.
Ms. Tarsey is a real-estate heir-
ess whose father Jason Tarsey
owned the Dunes Hotel on the Las
Vegas Strip. A few years ago, she
moved to Florida, and rented the
house out. Now shes planning to
list it for $22.5 million with Greg-
ory Bega and Lindsay Galbraith of
Sothebys International Realty.
Versailles-style details dont
come cheap. Builder Tom C. Mur-
phy, co-president of Florida-based
Coastal Homes, says he has
worked on three homes inspired
by Versailles, ranging in size from
15,000 to roughly 80,000 square
feet. These homes are pricey not NOT FOR EVERYBODY This Beverly Hills home is going
just because of their size, he says, on the rental market after failing to sell; it sought $18.95
but because materials and artisans million in 2014. Visitors at the real Versailles, below.
are often sourced from overseas.
Moreover, 17th- and 18th-century Several Versailles replicas have
homes didnt have to contend with faced difficulty selling. Perhaps
things like electric lighting and the best known example is the
HVAC systems, which take extra 90,000-square-foot mansion in
work to conceal without ruining Windermere, Fla., that inspired the
elaborate design schemes. 2012 documentary The Queen of
In the U.S., homes inspired by Versailles. Owners David Siegel,
Versailles dont always go over founder of timeshare giant West-
well with neighbors. When dentist gate Resorts, and his wife, Jacque-
Leonid Glosman and his wife, Nat- line, put the partially completed
alie, set out to build a Versailles- home on the market in 2010 for
inspired home in Beverly Hills in $100 million fully finished, or $75
the late 1980s, it took two years to million as-is. The home sat on the
get permission to build, because market for several years and had
the homes style is not customary its price reduced before being
in the neighborhood and the taken off the market.
height was much higher than the Ms. Glosman, who moved with
rest of the homes, says their her husband to the U.S. from Rus-
daughter Monique Vayntrub. sia in the 1970s, says she chose
Once they are built, Versailles- Versailles as her inspiration be-
style homes can sometimes have cause it is one of the most mag-
trouble on the resale market. A nificent architectural achievements
lot of people today want modern, in the world.
contemporary, they dont want tra- But when the family put the
ditional and they dont want Euro- eight-bedroom house on the mar-
pean, warns Beverly Hills-based ket for $18.95 million in 2014, they antiques for modern furniture. lanta with elaborate gardens in- ings, murals on the walls and a
real-estate agent Myra Nourmand found that not everyone had the Now they are seeking to rent the spired by Versailles. ballroom. The Scalamandr fabric
of Nourmand & Associates. same appreciation for the style. house out for $100,000 a month But if history is any indication, on the dining room walls is a copy
According to Realtor.com, The home had a limited audience for long-term rentals or $300,000 there will be no shortage of future of draperies at Versailles, he says.
homes that mentioned Versailles of potential buyers, says Ms. Nour- a month for short-term rentals. mini-Versailles to come. Mr. Harris, a manufacturing ex-
in their listing copy spent a me- mand, one of the listing agents. When it comes to Versailles- Its uniqueits not cookie cut- ecutive, acknowledges that the
dian of 122 days on the market, far When the house didnt sell, the style homes, either you love it, or ter, Kevin Harris says of the Ver- homes ornate style may make it
higher than the national median of Glosmans took it off the market its not for you at all, says Debbie sailles-inspired home in Indianapo- difficult to resell if that time ever
62 days and above the 111-day me- and spent millions on a renova- Sonenshine of Coldwell Banker lis he bought in 2014 for $650,000. comes. But he and his wife love
dian for the top 5% highest priced tion, replacing many colorful inte- Residential Brokerage, who is list- The roughly 14,000-square-foot the home, he says, and after all,
homes in the country. riors with white and swapping out ing a $4.75 million home in At- home has hand-plastered mold- you gotta live somewhere.