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* * * * * * FRIDAY, APRIL 14, 2017 ~ VOL. CCLXIX NO. 86 WSJ.com HHHH $3.

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Whats
As the Fight in Syria Heats Up, Forces Make a Deadly Error
Trumps
News Reversals
Business & Finance Reflect
B anks warned that in-
vestors wont see bene-
Business
Influence
fits from rising rates and
Trumps election as quickly
as many had hoped, even as
J.P. Morgan and Citigroup
posted sharp profit gains. A1 BY ELI STOKOLS
AND MICHAEL C. BENDER
 Chinas yuan posted its
SAMEER A-DOUMY/AGENCE FRANCE-PRESSE/GETTY IMAGES

biggest one-day gain against


WASHINGTONPresident
the dollar in nearly three
Donald Trumps growing reli-
months, as Beijing pushes to
ance on former corporate ex-
prop up the currency. A1, B10
ecutives in his White House
 The passenger who was and business leaders outside
dragged off a United flight of ithelped shape this weeks
plans to sue after suffering reversals on several hard-line
a concussion and other in- positions that defined his cam-
juries, his attorney said. B1 paign, according to officials.
Unlike in the early weeks of
 T-Mobile, Dish and Com-
his presidency, when his senior
cast were among the top buy-
staff were a close-knit group of
ers in the governments wire-
former campaign aides who
less-airwaves auction, which
had helped craft his image as
drew $19.8 billion in bids. B1
an insurgent in the capital, Mr.
 Stocks sank for a second TOY GUN, REAL WAR: A boy in the rebel-held town of Douma, east of Damascus, plays in a moment of quiet in the Syrian revolt. The Trump has sided recently with
week, led by financial and U.S. mistakenly killed 18 of its allies against Islamic State in a misdirected airstrike near Tabqa Dam in the north of the country. A7 the more pragmatic wing of
industrial shares. The Dow his administration. That group
slid 138.61 points on Thurs- espouses economic and foreign

U.S. Drops Mother Bomb


day to close at 20453.25. B11 policies that are much more in
 The largest U.S. tech line with the Washington es-
firms in the S&P 500 fell for tablishments traditional view.
the 10th session in a row. B12 Mr. Trump appears to have
taken some of the advice from
 A number of forecasters

On ISIS in Afghanistan
chief executives he has met with
are beginning to recon-
frequently since taking office, as
sider their bullish outlooks
well as from former executives
for the U.S. economy. A2
now in the administration and
 The FDA criticized Ab- two family members with offi-
bott for failing to properly cial White House roles, his
investigate and resolve risks The U.S. military dropped bombs or artillery strikes. Last week, for instance, the daughter Ivanka Trump and son-
related to heart devices. B3 one of the largest nonnuclear By Jessica Donati, President Donald Trump U.S. military, in a move ap- in-law Jared Kushner.
bombs in its arsenal Thursday Ben Kesling suggested Thursday that he proved by the president, fired Take the U.S. Export-Import
 A cybersecurity firm is and Dion Nissenbaum
on an Islamic State tunnel-and- had not personally been in- 59 Tomahawk missiles onto a Bank. During the campaign,
raising fresh concerns
cave complex in eastern Af- volved in the decision to use Syrian airfieldthe first time Mr. Trump was skeptical of Ex-
about hackers taking con-
ghanistan, the Pentagon said. We have been waiting the giant bomb, which is de- the U.S. has directly attacked Im Bank, which funds U.S.
trol of moving cars. B2
A U.S. plane dropped the months to use it, said an allied ployed by parachute from the the Syrian regime after years trade deals, calling it unnec-
 VW has bought back or nearly 22,000-pound Massive official in Afghanistan. I think rear ramp of a transport plane. of war there. And in the west- essary. The bank has been a
ended leases of nearly 238,000 Ordnance Air Blast bomb the loss of our soldier helped I authorize my military, Mr. ern Pacific, a U.S. aircraft car- target of Republican criticism,
diesel vehicles affected by nicknamed the Mother of All motivate leaders to approve it. Trump said. We have given rierand, Mr. Trump has said, which Mr. Trump seized on.
its emissions scheme. B3 Bombsjust a few days after The bomb is a precision- them total authorization. a nuclear-powered subma- Please see TRUMP page A4
an American Special Forces guided smart bomb designed Still, the use of the bomb by rinewere directed to waters
 Uber resumed service
soldier was killed during a joint to cause maximum damage to the military comes at a time Please see BOMB page A7  Apparent shift on Ex-Im Bank
in Taiwan but faces fresh
U.S.-Afghan offensive against bunkers, tunnels and other ar- when new military tactics are is a win for business............. A2
hurdles in Europe. B4
dug-in Islamic State positions eas that can typically with- being used in other long-run-  North Korea appears set for  President revives push on
in the same area. stand even large standard ning foreign-policy challenges. another nuclear test.............. A8 health-care revamp................ A4
World-Wide

 Trumps growing reli-


ance on former corporate
executives in his White
Banks Rate Boon Stays Out of Reach for Now
Houseand business lead- Some of the nations largest that many bank investors were Bank executives told inves-
ers outside of ithelped banks warned Thursday that betting on after Mr. Trumps tors on a series of conference Slippage
shape this weeks reversals the benefits investors antici- election had so far failed to calls that they were sanguine Lending growth has slowed at major U.S. banks.
on several hard-line posi- pated from rising interest yield breakout gains. that U.S. policy makers goals
tions, officials say. A1 rates and the election of Don- Shares at all three banks of loosening financial regula- Total loans outstanding, change from a year ago

 The U.S. dropped one of ald Trump as president arent fell more than the Dow Jones tions and cutting tax rates 12% Citigroup J.P. Morgan Chase Wells Fargo
its largest nonnuclear panning out quite as quickly Industrial Average, which would eventually help boost
bombs on an Islamic State as many had hoped. dropped 0.7%. Wells Fargo growth. 10
tunnel-and-cave complex in fell 3.3%, while J.P. Morgan When you have a new pres-
By Peter Rudegeair, lost 1.2%. ident and they get going... its 8
eastern Afghanistan. A1
Telis Demos and Since the election, the S&P going to be a sausage-making
 The Pentagon said the 6
Emily Glazer financial sector was up more period, J.P. Morgan Chief Ex-
U.S. mistakenly killed 18 al- than 16% heading into Thurs- ecutive James Dimon said on a 4
lies in Syria in a misdi- J.P. Morgan Chase & Co. days trading, and less than conference call with analysts.
rected airstrike meant to and Citigroup Inc. posted 1% since inauguration. To expect it to be smooth, 2
target Islamic State. A7 sharp increases in first-quar- While bank stocks surged in that would just be silly.
 North Korea appears pre- ter profit, fueled by a contin- the wake of Mr. Trumps sur- Investors are feeling less 0 unch.

pared to stage its sixth nu- ued rebound in their Wall prise victory, they have patient. There are itchy trig-
Street trading businesses. But slipped the past month as in- ger fingers from investors 2
clear weapons test as soon as
this weekend, officials said. A8 the results, along with those vestors grow more doubtful looking to sell, said Christo-
from Wells Fargo & Co., high- about whether broad measures Please see BANKS page A2 4
 Brazils president was lighted that the rising interest like lending growth and profit- 4Q 16 1Q 16 1Q 16 1Q
accused of a role in a deal to rates, more robust loan de- ability will catch up with loft-  Heard on the Street: Lenders 2015 17 17 17
funnel a $40 million bribe mand and pro-growth policies ier valuations. pain is spread unevenly..... B12 Source: the companies THE WALL STREET JOURNAL.
to his political party. A5
 The U.S. sanctioned the
German Officials Order Parents to
brother of Irans top spy
master for alleged human-
rights violations. A6 Execute a SpyCayla the Doll CHINA TRIES TO BATTLE
 Russian officials said it
was too early to gauge if ties
with the U.S. would improve
i i

Fears of hacking force parents to comply


i
THE TRILEMMA
after Tillersons visit. A6
 CIA chief Pompeo called or face a fine; destroy it with a hammer
the website WikiLeaks a Beijings crusade to prop up its currency imperils other pressing mandates
nonstate hostile intelli-
gence service. A4 BY ANDREA THOMAS Germanys top telecommunica-
tions watchdog, issued an order BY LINGLING WEI nently in President Donald
 The Border Patrol, under BERLINEarlier this year, to parents to find Cayla and de- Exchange-Rate Blues Trumps rhetoric. In a Wall
orders to expand, is consid- Lisa Harmann received a warn- stroy her. It also banned its BEIJINGPresident Xi Jin- Street Journal interview
ering eliminating polygraph ing from the German govern- sale, purchase and ownership. ping gathered with his eco- China's currency has declined Wednesday, Mr. Trump said
exams for many applicants. A3 ment: A spy might be lurking in Its about the protection of nomic mandarins in Decem- against the dollar, eroding faith his administration in a report
her childs bedroom. She should the weakest in our society, said ber for their annual strategy in its economic management. due this week wont label
 California is considering
moving its Democratic pri- find it and destroy it. Jochen Homann, presi- meeting at a heavily guarded 6.0 yuan per dollar China a currency manipulator,
mary to March from June. A3 With their 10-year- dent of the body government hotel. In closed- something he threatened to
old daughter sound known as Bundesnet- door sessions, say people fa- do during his campaign.
 Canadas government asleep, Ms. Harmann zagentur. miliar with the confab, he 6.2 On Thursday, Chinas cen-
introduced a bill that would and her husband Privacy may be made clear what their man- tral bank guided the yuan to
legalize marijuana. A6 sneaked into the room eroding around the date was for 2017: He would 6.4 its biggest one-day gain
armed with a flash- world, but not in Ger- tolerate no wobbliness in the against the dollar in nearly
CONTENTS Markets.................. B112 light and soon found many, where en- economy. three months, putting it at
Business News.. B3,6 Opinion.............. A13-15 6.6
Crossword............... A11 Sports........................ A12 the culprit sitting in- croachment is met The communiqu coming the strongest level against
Equities..................... B11 Technology............... B4 side the cupboard, with the kind of treat- out of the session singled out the dollar since Feb. 17. The
Heard on Street. B12 U.S. News............. A2-5 sporting a frozen ment reserved else- one policy objective in partic- 6.8 yuan has gained 1% this year
Life & Arts....... A10-11 Weather................... A11
Mansion............. M1-10 World News....... A6-8
smile and billowing where for bank rob- ularkeep the yuan stable. Scale inverted to show against the dollar. (See article
pink skirt. bers. Armed with What followed has been 7.0 the falling yuan on page B10.)
Despite her inno- some of the toughest the marked acceleration of a No matter how its moves
> 2015 16 17
cent looks, My Friend My Friend Cayla privacy protection shift in priorities at the Peo- are perceived, Chinas laser fo-
Cayla isnt a dollat laws on the planeta ples Bank of China, the cen- Sources: WSJ Market Data Group cus on slowing the yuans de-
least not in the eyes of German legacy of blanket state surveil- tral bank, toward preventing THE WALL STREET JOURNAL. cline is an issue of great sig-
authoritiesbut an illegal lance under past dictatorships the currency from cratering nificance to the world
s Copyright 2017 Dow Jones &
eavesdropping device. On Feb. the German state has been go- above all else. economy. If the PBOCs aggressive approach
Company. All Rights Reserved 17, after a lengthy investigation, ing after trespassers with The yuans value is a global hot button, and shortchanges traditional central-banking man-
the Federal Network Agency, Please see DOLL page A9 Beijings handling of it has played promi- Please see CHINA page A9
A2 | Friday, April 14, 2017 THE WALL STREET JOURNAL.

U.S. NEWS
Economists Trim Growth Forecasts Business
BY JOSH ZUMBRUN
Wins in Fewer forecasters are now which showed the economy

A growing number of fore-


casters are beginning to re-
banking on a large push from
Congress. In January, 71% of
economists were including sig-
adding 98,000 jobs.
Many economists believe
consumer sentiment is likely
Ex-Im
consider their bullish outlooks
for the U.S. economy as doubts
grow over the extent to which
nificant fiscal-policy changes
in their forecasts. In April,
that number was down to
to come down, too. After the
election, consumer confidence
soared. Only about 10% of
Bank Move
President Donald Trump will 44%. A majority now say sig- economists believe sentiment BY NICK TIMIRAOS
be able to implement his nificant changes are unlikely, will stay elevated. A majority,
agenda. although many said a small 53%, said the economy would WASHINGTONWhen Pres-
The prospect of single- fiscal boost remains possible. improve, but not enough for ident Donald Trump signaled
party control of Congress and It is entirely debatable sentiment to remain so high. Wednesday he would end a
the White Housecoupled how stimulative any tax pro- There was undue optimism yearslong debate within the
with campaign promises to gram will ultimately be, said regarding the speed at which Republican Party over the U.S.
overhaul the health-care sys- Constance Hunter, chief econ- Washington, D.C., can move, Export-Import Bank, he sided
tem, simplify the corporate tax omist of KPMG. The timing of said Michael Fratantoni, chief with the business establish-
code and launch a major infra- a tax overhaul in 2018 is still economist of the Mortgage ment to restore an agency that
structure packagehad sent up in the air, meaning it is un- Bankers Association. some conservative Republi-
optimism about the U.S. econ- wise to incorporate into fore- For the first time since the cans, including members of his
omy soaring. Following the casts just yet, she said. election, less than 50% of econ- administration, wanted to
election, respondents to The In an interview with The omists saw upside risks to their cripple.
Wall Street Journals monthly Wall Street Journal this week, economic forecasts, meaning Mr. Trumps apparent
survey of forecasters signifi- Mr. Trump said he intended to the economy could perform about-face had been tele-
cantly raised their estimates finish dealing with health care better than they estimated. graphed two months ago,
for growth, inflation and inter- before releasing guidelines for In April, 46% of forecasters when he pledged in a private
est rates. lawmakers to write tax legisla- saw greater upside risks, com- meeting with lawmakers his
But the collapse of the ini- eral funding for infrastructure. pointment, if not outright tion. pared with 62% last month. support for the agency that
tiative to repeal and replace Many people still remain skepticism. Forecasts for the pace of The chances of a recession in backs U.S. exports. But Mr.
President Barack Obamas too invested in Trumps cam- Growth forecasts for the job growth have also dipped. the next 12 months climbed to Trump hadnt publicly com-
health-care law last month un- paign promises of a large fis- first quarter have come down. The forecasters now expect 16% from 14% last month. mitted to reviving the bank
derscored Republican Party di- cal-stimulus program, said In December, the average fore- 169,000 jobs a month added in The survey of 61 financial, until his comments in an in-
visions that might make it dif- Bernard Baumohl, chief econo- cast called for 2.3% growth in the year ahead, down from academic and business econo- terview with The Wall Street
ficult to reach consensus on mist of the Economic Outlook the first quarter. That fell to 187,000 in last months survey. mists was conducted from Journal on Wednesday.
initiatives that could provide Group. But as time passes, 1.9% in March and dipped That downgrade owes, in part, April 7 to April 11. Not every The presidents backing of
an economic stimulus, such as the lack of follow-through will again to 1.4% in this months to the Labor Departments em- economist answered every the Ex-Im Bank concludes a
lower corporate taxes or fed- turn that optimism into disap- survey. ployment report for March, question. debate stretching to 2012,
when conservative Republi-

U.S. WATCH
cans emboldened by the tea-

PLANNED PARENTHOOD 13% rise from February. The rush


Producer Prices Fell in March party movement targeted the
agency as an example of cor-
porate welfare they said dis-
torted markets.
of inbound ocean trade marks a BY JEFFREY SPARSHOTT year-over-year increase in five energy prices climbed 15.2%. The banks backers say the
Law Lets States return to form after a slump in AND SARAH CHANEY years, largely because of higher The PPI is an inflation agency allows U.S. companies
Deny Group Funding Chinese exports in February. energy prices. Excluding often gauge that looks at prices to compete on equal footing
Some importers and export- WASHINGTONA gauge of volatile prices for food and en- businesses receive from cus- against foreign rivals that re-
President Donald Trump ers may also have moved up U.S. business prices fell slightly ergy, the index was flat last tomers, including consumers, ceive similar support from
signed legislation that would al- shipments ahead of April 1, in March, suggesting inflation month. From a year earlier, other businesses and govern- their home governments, and
low states to strip some federal when the worlds top shipping pressures remain muted. those core prices were up 1.6%. ments. As a result, changes in Mr. Trump on Wednesday re-
funds from womens reproduc- lines began operating under The producer-price index Prices were up 0.1% from a the index dont necessarily di- cited many of the arguments
tive-health organizations in a three alliances. The alliances con- for final demand, measuring month earlier and 1.7% on the rectly reflect what consumers used for years by the banks
closed-door event Thursday at trol more than 90% of capacity changes in the prices compa- year when excluding food, en- pay. But PPI readings generally biggest customers, Boeing Co.
the White House that capped a on major trade routes, and some nies receive for goods and ser- ergy and a measure of whole- follow the same trends as and General Electric Co.
bitter fight over the issue. ports reported delays as carriers vices, declined a seasonally ad- saler and retailer margins other major inflation gauges. Mr. Trump had made only
The signing officially cancels a reoriented their operations. Many justed 0.1% in March from the known as trade services. The personal-consumption- fleetingand sometimes con-
rule issued by the Obama admin- shippers fear the alliances will prior month, the Labor Depart- Energy prices, down 2.9% expenditures price index, the tradictorystatements about
istration that aimed to block raise rates. ment said Thursday. The drop from the prior month, drove Federal Reserves preferred in- the bank during the 2016 cam-
states from denying certain Erica E. Phillips was the first since August. the change in the headline PPI. flation gauge, crossed the banks paign. I was very much op-
funds to health-care providers From a year earlier, prices Gasoline prices fell 8.3% from 2% target for the first time in posed to Ex-Im Bank, because
and allows states to refuse to POLITICS advanced 2.3%, the biggest February. From a year earlier, nearly five years in February. I said what do we need that
give the funds to Planned Par- for IBM and General Electric,
enthood Federation of America Warren Weighed he said Wednesday. It turns
Inc. and similar organizations.
Repealing the rule is a win for
A Presidential Run CongratulationsIts a Boy! (Sort of) out that, first of all, lots of
small companies will really be
social conservatives who dont Sen. Elizabeth Warren opted helped, the vendor companies.
want taxpayer dollars funding not to run for president in 2016 But also maybe more impor-
centers that provide abortions. in part because her husband tantly, other countries give it,
Federal law prohibits the use of warned her the race would be andwe lose a tremendous
taxpayer dollars to pay for abor- far more grueling than her 2012 amount of business.
tions, except in cases of rape, in- Senate bid, she writes in a book Mr. Trump also pointed to
cest or grave risk to the health scheduled for release next week. the banks history of turning a
of the mother. Ms. Warren, a Massachusetts profit for the government un-
Natalie Andrews Democrat, progressive favorite der federal accounting rules.
and possible contender for the Its a very good thing, and it
ECONOMY 2020 Democratic presidential actually makes money, he
nomination, recounts asking her said.
Cargo Shipments husband, Bruce Mann, if she Republican critics of the
To U.S. Rise Sharply should enter the fray in her new bank said they were discour-
book, This Fight Is Our Fight. aged by Mr. Trumps com-
Cargo swelled through U.S. Her husband ultimately gave his ments and hoped he would re-
ports in March, as trade with blessing to a bid. consider. Youre picking
L. TODD SPENCER/ASSOCIATED PRESS

China bounced back and compa- Ms. Warrens bookin which winners and losers. Thats the
nies rushed shipments before she reveals for the first time she crony aspect and that does not
new shipping-industry alliances considered a White House run help to drain the swamp, said
kicked in. combines biography and eco- Rep. David Brat (R., Va.).
The Ports of Los Angeles and nomic commentary. The bank had become a ral-
Long Beach, Calif., which make The book will be published lying cry by the conservative
up the nations largest seaport Tuesday by Metropolitan Books, grass roots against GOP lead-
complex, said they imported a an imprint of Henry Holt and Co. ers who supported it, includ-
combined 622,083 loaded 20- A copy was obtained by America ing then-Rep. Eric Cantor (R.,
foot equivalent units, a standard Rising, a conservative research BIG REVEAL: Teman, a Komodo dragon, was guided Thursday by unseen handlers toward a blue egg Va.), the House majority
measure for container cargo, in group, and viewed by The Wall to indicate the gender of two offspring he sired at the Virginia Aquarium and Marine Science Center. leader who was defeated by
March. That amounted to a 26% Street Journal. Mr. Brat in a 2014 primary
increase over March 2016 and a Byron Tau election, and House Speaker
John Boehner (R., Ohio), who
resigned from Congress in Oc-

BANKS the bank to be more cau-


tious.
In Citigroups North Ameri-
can consumer-banking group,
two years. Big banks earn
more money by lending out
their vast deposits when inter-
est rates rise. They also bene-
bonds and other securities
closely tied to interest rates.
Investment-banking fees at
each bank were up nearly 40%
the second quarter.
Meanwhile, Marianne Lake,
J.P. Morgans finance chief,
said on a conference call that
tober 2015.
The banks charter expired
in July 2015 but was reautho-
rized at the end of that year
Continued from Page One profit fell 25%, driven by fit from a larger gap between thanks in part to underwriting she expected the Trump ad- over the objections of some
pher Davis, a veteran portfolio credit losses on some credit short term and long term more bond deals for compa- ministrations agenda would GOP leaders, ending a five-
manager at Davis Funds, cards. At J.P. Morgans and rates, a so-called steep yield nies looking to lock in low eventually lead to more hiring, month shutdown. Large major-
which manages about $25 bil- Wells Fargos consumer-bank- curve. borrowing costs. spending and borrowing. But ities in both the House and
lion in assets and recently re- ing arms, profit fell 20% and J.P. Morgan said it expects Theres good momentum, she acknowledged that much Senateincluding a majority
ported owning large stakes of 9%, respectively. net interest income to rise by as we see things now, said of the economic activity of House Republicansvoted
J.P. Morgan and Wells Fargo. PNC Financial Services about $4.5 billion in 2017. Citigroup CEO Michael Corbat. hadnt yet arrived. Its com- to reauthorize the bank.
While he likes the steady Group Inc. bucked some of the Citigroup said it was now Client engagement was high, pletely understandable that Kristina Peterson
and consistent growth both trends, saying stronger loan building into future plans an and I think remains high into optimism would lead action. contributed to this article.
companies are likely to offer in additional rate increase, in

CORRECTIONS  AMPLIFICATIONS
coming years, he says that June. That would help bump THE WALL STREET JOURNAL
many investors in recent weeks up its expected year-over-year (USPS 664-880)

have grown more worried


Bank stocks have core interest revenue by $1.5
(Eastern Edition ISSN 0099-9660)
(Central Edition ISSN 1092-0935)
about banks lending potential. slipped the past billion over the next three (Western Edition ISSN 0193-2241)
Editorial and publication headquarters:
At both J.P. Morgan and quarters. UniCredit SpA raised 13 day about different ways to
Citigroup, profit rose 17% in
month amid growing But the bank also made a billion ($13.79 billion) from a calculate investment returns,
1211 Avenue of the Americas,
New York, N.Y. 10036
the first quarter, with the cap- investor doubts. modest reduction in expec- rights issue in February. A the time-weighted return was Published daily except Sundays and general
legal holidays. Periodicals postage paid at
ital-markets arms of each bank tations for loan growth. Rising Markets article on Thursday 6.36%. The chart incorrectly New York, N.Y., and other mailing offices.
being the brightest spots of rates have a downside in mak- about Italy incorrectly said said the examples time- Postmaster: Send address changes to
their reports. Wells Fargo, ing some loans, especially UniCredit raised 7.5 billion in weighted return was 6.63%. The Wall Street Journal, 200 Burnett Rd.,
Chicopee, MA 01020.
which has a relatively slimmer activity helped its earnings mortgage refinancing, less at- January.
All Advertising published in The Wall Street
footprint on Wall Street busi- beat expectations Thursday. tractive to borrowers. Retired Gen. Stanley Mc- Journal is subject to the applicable rate card,
nesses, said its first-quarter The Pittsburgh bank attributed Wall Street trading desks S&P Dow Jones Indices Chrystal was incorrectly called copies of which are available from the
Advertising Services Department,
profit was flat. the growth in part to markets were a bright spot. J.P. Mor- publishes semiannually the a former general in a Business Dow Jones & Co. Inc., 1211 Avenue of
Commercial loan balances where it is expanding, includ- gans trading revenue in- S&P Indices Versus Active & Finance article on April 7 the Americas, New York, N.Y. 10036. The
Journal reserves the right not to accept an
didnt change at J.P. Morgan ing Dallas, Kansas City and creased 13% to $5.82 billion in scorecard. A Page One article about WorldQuant LLC. advertisers order. Only publication of an
and Wells Fargo compared Minneapolis. the first quarter of 2017, while on Thursday about U.S. funds advertisement shall constitute final acceptance
of the advertisers order.
with the fourth quarter of In coming quarters, big Citigroups rose 17% to $4.39 and their market benchmarks Hunter Lewiss book Are
Letters to the Editor:
2016. New auto loans de- banks hope that interest rates billion. Last years first quar- incorrectly said S&P Global the Rich Necessary? was pub- Fax: 212-416-2891; email: wsj.ltrs@wsj.com
clined 17% at J.P. Morgan and continue climbing, since that ter was a brutal one for each publishes it. lished in 2007. A Business &
29% at Wells Fargo compared would essentially give them banks trading arm, so the lat- Finance article on March 15 NEED ASSISTANCE WITH
with last years first quarter. more pricing power in lending est results are coming off of a In the theoretical example about Cambridge Associates YOUR SUBSCRIPTION?
John Shrewsberry, Wells products. low base. accompanying an Investing in incorrectly said the book was CONTACT CUSTOMER SUPPORT.
Fargos finance chief, said In March, the Federal Re- Fixed-income trading reve- Funds & ETFs article on Mon- published in 2009. By web: customercenter.wsj.com
that signs of rising delin- serve moved its target short nue was up nearly 20% at each By email: wsjsupport@wsj.com
By phone: 1-800-JOURNAL (1-800-568-7625)
quencies and deteriorating term rate higher, its third in- bank, reflecting higher activity Readers can alert The Wall Street Journal to any errors in news articles by Or by live chat at wsj.com/livechat
used-car values are causing terest-rate bump in the past in markets for government emailing wsjcontact@wsj.com or by calling 888-410-2667.
THE WALL STREET JOURNAL. * * * * * * Friday, April 14, 2017 | A3

U.S. NEWS

Border Patrol Rethinks Test for New Hires


Under orders to boost
staffing, agency could
drop polygraph exam
many applicants failed
BY DAN FROSCH
AND LAURA MECKLER

For the past several years,


the U.S. Border Patrol has
struggled to fill its ranks with
agents who meet its stan-
dards. Now, under orders from
President Donald Trump to
swiftly recruit thousands of
new employees, the agency is
contemplating changing some
of its hiring requirements.
The biggest shift would
eliminate the use of a rigorous
polygraph exam for many ap-
plicants, while implementing
an alternative test for others.
The polygraph has given
us a difficult time, said Bor-
der Patrol Chief Ronald Vi-
tiello on Wednesday at a con-
ference in San Antonio on

RODRIGO ABD/ASSOCIATED PRESS


border security. Not a lot of
people are passing.
Critics say the changes to
the polygraph program would
lower the bar to get into the
Border Patrol and leave it
more vulnerable to unsuitable
candidates and corruption.
If they actually cant meet U.S. Border Patrol agents with bales of marijuana along a highway near Ryan, Texas, in March. The current polygraph exam for border agents was implemented in
the standards, it doesnt mean response to reports of agents being targeted for bribes by drug cartels and human-smuggling operations.
we lower the standards to get
a larger number who can meet
them, Sen. Kamala Harris (D., Building Up the Ranks Arrest Is Made know that, its huge for them, other Border Patrol agents got
Calif.) said. Funding for Border Patrol agents has increased said Brandon Judd, president of into gunfight with the men on
At least some changes will dramatically but trouble nding qualied applicants
In 2010 Murder the National Border Patrol Dec. 14, 2010.
19,570 agents
be tested on applicants begin- has kept the agencys numbers down in recent years. as of April 2017 On Mexican Border Council, the union that repre- In a statement, Attorney
ning this month, while others sents Border Patrol agents. General Jeff Sessions praised
are being debated. U.S. Cus- 20,000 agents Heraclio Osorio-Arellanes, Mexican authorities, in particular
toms and Border Protection, Mexican authorities arrested who is charged with participat- the Mexican Navy, for the arrest.
which includes the Border Pa- a suspected gunman in the 2010 ing in the murder of Mr. Terry Mr. Terrys death became
trol, says the modifications murder of a U.S. Border Patrol during a shootout in the Ari- emblematic of problems
15,000
wont lower standards or com- agent, the latest apprehension in zona desert, was taken into with the Bureau of Alcohol, To-
promise the quality of hires. a politically charged case that custody in Chihuahua at the re- bacco, Firearms and Explosives
Administration officials say became entwined with the Jus- quest of the U.S. authorities, Fast and Furious program. Un-
something must be done to re- 10,000 tice Departments botched Fast the Justice Department said. der the operation, ATF agents
move what they consider to be and Furious operation. Mr. Osorio-Arellanes will be sought to build cases against
overly restrictive hiring barri- The killing of Border Patrol transported to Mexico City for people suspected of smuggling
ers. The agency says roughly Agent Brian Terry has hung extradition proceedings. guns into Mexico by allowing
60% of all applicants fail the 5,000 heavily over the U.S. Border Mr. Osorio-Arellanes was al- them to buy roughly 2,000
polygraph now in use. Patrol and comes amid hiring legedly part of a rip crew of weapons and then trying to
The Border Patrol employs challenges within the agency. cartel members who patrolled trace them. Some of the guns
19,570 agentsits lowest staff- News of the arrest was met the desert along Arizonas bor- turned up at crime scenes in
ing level since 2008, data 0 with relief by border agents. der with Mexico searching for Mexico and the U.S., and one
show. It currently has 1,800 FY1992 2000 10 17 Nobody ever gave up on drug dealers to rob. Mr. Terry was traced to Mr. Terrys killing.
open positions, and Mr. Trump Note: Fiscal year ends Sept. 30. this case. For our agents to was killed after he and several Dan Frosch
has ordered an increase of Source: U.S. Border Patrol THE WALL STREET JOURNAL.
5,000 agents over five years.
Other changes being consid- worries the proposed changes fail to achieve the goal of and effectiveness. and others said it was likely the agency to more swiftly get
ered include giving CBP broad would be a step back for the shortening the hiring process In an internal memo posted because applicants were un- the same results from appli-
authority over background agency and leave it susceptible and increase the risk that un- on the website for the Border truthful about past drug use, cants without compromising
checks for applicants and ex- to the misconduct seen during suitable candidates may be Patrol agents union, CBPs act- even though that doesnt auto- the rigors of its standards.
tending the probationary period a previous hiring surge. hired, Mr. Roth said in a writ- ing commissioner, Kevin McA- matically disqualify them. But James Tomsheck, a for-
for new agents to two years. Thats why the polygraph was ten response in March to leenan, outlined the challenges Already, at the end of this mer head of the agencys in-
Even as it pushes to hire instituted, she said. We knew questions from Ms. Harris of hiring thousands more per- month, the agency will begin ternal-affairs division, said the
more employees, CBP must there was at the very least the submitted after he testified sonnel. He said CBP must com- to use an alternative, shorter new exam is inadequate.
keep a focus on the quality possibility of corruption. before the Senate Homeland pete with other law-enforce- polygraph exam as part of a Mr. Tomsheck said the cur-
versus quantity of applicants, The Homeland Security De- Security committee. ment agencies that pay better pilot program for new hires. rent exam, which he helped
Randolph Alles, the agencys partments inspector general, Mr. Roth said the agency and dont require a polygraph. Linda Jacksta, an assistant implement, is vital to weeding
acting deputy commissioner, John Roth, also expressed con- needed to identify other ways Mr. Vitiello said it was un- CBP commissioner and head of out applicants with drug
told conference attendees. cerns about changing the poly- to make hiring more efficient clear why so many people its human-resources division, ties through specific questions
But Ms. Harris said she graph. The proposed changes without sacrificing integrity failed the polygraph. But he said the new test would allow about illegal drug activity.

Jerry Brown Seeks Moving Up


A bill in the California state legislature would move the states primary voting day up, potentially making
Report
Reveals
Infrastructure Help
it third to vote. In 2016, Californians were among the last voters in the nation to cast primary ballots.
2016 primary voting date by state = 50 delegates

Abuses
Democrats
Where bill places
California in 2020

BY ALEJANDRO LAZO left in his final term as gover-


nor, Mr. Brown is pushing a
548 Democratic
delegates At Choate
SAN FRANCISCOSecre- $15.5 billion plan to build twin BY JON KAMP
tary of the Interior Ryan 30-mile-long tunnels beneath AND JENNIFER LEVITZ
Zinke, the former U.S. Navy the states delta to move water Republicans
Iowa Super California
SEAL who rode a horse to more reliably. That project, (rst) Choate Rosemary Hall, an
Tuesday
work on his first day in the however, faces opposition elite Connecticut boarding
Trump administration, trav- from farmers and environmen- 172 Republican school, released an outside in-
eled to California Thurs- talists, who say the tunnels delegates vestigators report on Thurs-
day and pledged bipartisan co- would destroy fisheries, farms day revealing detailed allega-
operation with Democrat Gov. and communities in the delta February March April May June tions that many students were
Jerry Brown, an outspoken by rerouting fresh water. Note: Figures include unpledged delegates victims of sexual misconduct
critic of the presidents envi- The Interior Department is Source: FrontloadingHQ THE WALL STREET JOURNAL. over decades.
ronmental policies. also at the heart of a major The 50-page report, the re-
During a meeting in Sacra-
mento, the governor and the
secretary discussed public
lands, water infrastructure,
debate in the West over fed-
eral preservation of natural
resources that inhibits com-
mercial development.
California Considers Cutting sult of an investigation
launched in October, named 12
adults previously affiliated with
the school who allegedly en-
and projects throughout Cali-
fornia that are managed by
the U.S. Department of the In-
Mr. Brown has said he can
find common ground with the
Trump administration over
Line to Hold Primary in 2020 gaged in sexual misconduct,
Choate said. The alleged mis-
conduct stretched across nearly
terior, Mr. Zinke said in a water and other infrastructure 50 years, from 1963 to 2010.
statement. projects, and has asked for bil- BY ALEJANDRO LAZO pating a true contest in which say in the process. The report also includes
I appreciated the positive lions in help from the adminis- their votes could make a dif- A state as populous and di- the deeply disturbing experi-
and productive conversation tration to help upgrade Cali- SAN FRANCISCOCalifor- ference. But before polls verse as California should not ences of 24 survivors, accord-
with the governor, Mr. Zinke fornias dams and highways. nia Democrats, who like to opened, media outlets re- be an afterthought, said Mr. ing to a letter to members of
said. There are a lot of issues Mr. Zinke didnt say think of themselves as the ported that Hillary Clinton had Padilla, a Democrat. By hold- the school community, signed
that cut through partisan lines, whether he and the governor vanguard of resistance to Pres- amassed enough delegates to ing our primary earlier, we by Michael J. Carr, chairman of
and Im glad we had the oppor- specifically discussed the tun- ident Donald Trump, want capture the nomination. will ensure that issues impor- the board of trustees, and
tunity to talk with each other nel project, though he did say a bigger say in choosing his The bill, which is in tant to Californians are priori- Headmaster Alex Curtis.
and start a conversation. he intended to work with the Democratic challenger in 2020. the state Senate, would move tized by presidential candi- The detailed content of this
A spokesman for Gov. Brown governor on reducing the A new bill backed by the Californias primary to the dates from all political report is devastating to read,
said he and Mr. Zinke had a damage caused by wildfires in states election chief would third Tuesday in March, and parties. they said in the letter. One
very cordial conversation and the state, as well as shoring make California the third state would give the governor the Typically, the two national can only have the greatest
there was a real recognition up infrastructure both on land to hold a presidential primary power to move it even earlier parties set the primary calen- sympathy and deepest concern
that California and the federal and water. or caucus, propelling it toward if other states try and move dar. It isnt clear whether ei- for the survivors. The conduct
government are deeply inter- Californias national parks the front of the line. their primary elections. That ther party would be amenable of these adults violated the
connected when it comes to were also a subject of discus- California currently holds would put Californias presi- to having such a large, expen- foundation of our community:
land and water management. sion. its primary in June, when the dential primary after the Iowa sive state front and center. In the sacred trust between stu-
Well continue to look for areas The Interior Department major parties often have their caucuses and the New Hamp- the past, the national parties dents and the adults charged
to work together. manages 23 million acres of presumptive nominees de- shire primary. have punished other large with their care.
Mr. Zinke heads an agency Californias federal land, in- cided, or a front-runner on the Alex Padilla, Californias states for holding their prima- The school thanked the sur-
that could affect Mr. Browns cluding 28 national parks and cusp of securing the delegates secretary of state, said that a ries in violation of their rules. vivors of sexual misconduct for
plans for a major water proj- 39 national wildlife refuges, needed to win the nomination. state the size of California, A spokesman for the Demo- coming forward. We extend
ect to carry water from North- National Park lands in the Last years Democratic pri- with 19.4 million registered cratic National Committee de- our deepest apologies most
ern California to the southern state hosted 42 million visi- mary had promised to be an voters and a total of 548 Dem- clined to comment and the specifically to all survivors of
part of the state. tors in 2016, according to the unusually exciting affair, with ocratic delegates last year, RNC didnt respond to a re- sexual misconduct and their
With less than two years department. California Democrats antici- should have a determinative quest for comment. loved ones, its letter said.
A4 | Friday, April 14, 2017 P W L C 10 11 12 H T G K B F A M 1 2 3 4 5 6 7 8 9 O I X X ** THE WALL STREET JOURNAL.

U.S. NEWS

Trump Shifts Back to Health Care


WASHINGTONAfter losing Journal, Mr. Trump specifi-
CIA Head
Labels
a fight to revamp the health-
care system, President Donald
Trump said last month he was
cally mentioned a renewed
confidence in the Freedom
Caucus, a group of conserva-
WikiLeaks
prepared to put the setback
behind him and move on to
the next challenge, rewriting
tive Republicans he had just
two weeks ago suggested tar-
geting for defeat in next years
Hostile
the tax code. midterm election. BY SHANE HARRIS
They want to do the right
By Louise Radnofsky, thing and they do like me and WASHINGTONCentral In-
Peter Nicholas they do like their president, telligence Agency Director
and Richard Rubin he said. Mike Pompeo on Thursday
Rep. Mark Meadows of called the website WikiLeaks a
Three weeks later, he said North Carolina, a prominent nonstate hostile intelligence
he is determined to resurrect House Republican and leader service, likening it to a for-
the health-care bill even if it of the Freedom Caucus, said eign government that at-
means delaying the tax over- he had conversations with the tempts to undermine U.S. in-
haul, telling The Wall Street president and his staff in terests and conduct espionage.

BRETT COOMER/ASSOCIATED PRESS


Journal in an interview: I which he set out a potential In his first public remarks
want to get health care doneI path to yes on a health-care as the head of the spy agency,
think I will get it done. deal for a number of conserva- he pointed to an assessment
The tax overhaul, he said, tive members and others. by U.S. intelligence agencies
would have to wait. He declined to discuss the earlier this year that con-
Mr. Trumps revived push specifics of that path, but cluded Russian military intelli-
to fulfill a core campaign praised the presidents past gence had used WikiLeaks to
promise appears to be driven business history in making release emails hacked from the
by three developments: First, deals where no deals seemed Democratic National Commit-
a renewed confidence that he Dr. Joseph Lamelas, center, performs heart surgery at Baylor St. Lukes Medical Center in Houston. to be in sight. tee and that Russias primary
can still win enough votes to Hes singularly focused on propaganda outlet, the Eng-
pass a bill; second, a belief making sure he fulfills his lish-language media network
that he needs the health-care Health Rule Seeks across the country. President been a primary source of anxi- campaign promises, Mr. RT, has actively collaborated
savings to help pay for the tax Donald Trumps administration ety for insurers as they weigh Meadows said. with WikiLeaks.
bill and hit his economic To Help Insurers is pitching the move as a tem- their options for 2018. While Mr. Trump has also It is time to call out
growth promises; and third, a porary fix as it continues to The rule introduces several suggested he is open to a deal WikiLeaks for what it really
recognition that the tax-code work with Congress to strike targeted changes aimed at with Democrats on health care, isa nonstate hostile intelli-
overhaul isnt near ready. WASHINGTONThe Trump an elusive deal to dismantle curbing some of the losses in- some White House officials be- gence service often abetted by
As a result, instead of cut- administration took steps on large parts of the health law surers have faced in the laws lieve the most direct route to state actors like Russia, he
ting his health-care losses, he is Thursday to stabilize the Af- known as Obamacare. exchanges. passage of a bill involves per- said.
insisting on pursuing an elusive fordable Care Acts individual We are pleased to see the It shortens the 2018 open- suading Republicans to go WikiLeaks has been a major
deal to overturn the 2010 Af- health-care market, as insurers steps the administration is tak- enrollment sign-up period to six along. Democrats oppose the irritant for the past two ad-
fordable Care Act, also known demand more certainty from ing to stabilize the market- weeks from three months and effort to repeal the law. ministrations. But Mr.
as Obamacare, and enact new the administration before decid- place, said Justine Handelman, introduces stricter limits on Keeping it in the family is Pompeos labeling the group a
health policy in its place. ing whether to remain in the a senior vice president at the when people can obtain cover- the easier path, one White hostile intelligence service
The GOP president has long laws marketplaces next year. Blue Cross Blue Shield Associa- age through the exchanges House aide said. marked a significant escala-
said he is loath to abandon a The Centers for Medicare tion. These rules are important outside of that open enrollment Another issue is at stake. tion in public rhetoric that
goal. In his book The Art of and Medicaid Services, a divi- to ensuring people maintain period. Mr. Trumps administration signaled a new and yet-unde-
the Deal, he wrote that his ap- sion of the Department of their coverage year-round, It also ends a practice ad- has projected a sharp increase fined approach to dealing with
proach is to aim very high Health and Human Services, which is critical to hold down vanced by former President Ba- in the nations projected WikiLeaks.
and then keep pushing and published its final rule aimed at costs for everyone. rack Obamas administration of growth rate, to around 3% But the CIA chiefs com-
pushing and pushing to get steadying the individual market, The final rule doesnt ad- allowing people to sign up for over the coming decade from ments were also at odds with
what Im after. which has seen large premium dress the cost-sharing subsidies new coverage if they have an average of 2% over the past praise that Donald Trump lav-
He added: Sometimes I set- increases and insurers retreat- paid by the government to in- overdue premium payments. decade due to policy changes. ished on the website during
tle for less than I sought, but in ing from unprofitable markets surers, the fate of which has Stephanie Armour The repeal and replacement the presidential campaign, af-
most cases I still end up with of the health-care law is a sig- ter it published emails stolen
what I want. nificant factor in the improved from Hillary Clintons cam-
The abrupt shift caught strategist at Horizon Invest- rassing defeat that would raise health-care legislation doesnt growth outlook, said budget paign chairman, John Podesta.
some Capitol Hill Republicans ments, a North Carolina in- more questions about the new mean its not going to get ac- director Mick Mulvaney in an At a campaign rally last Oc-
off guard. They had been pre- vestment firm, in a client note administrations ability to complished, said Corey Le- interview. tober, Mr. Trump told support-
paring to turn immediately to Wednesday. Unlike taxes or in- shepherd complicated legisla- wandowski, Mr. Trumps for- In addition, the tax plan Mr. ers that I love WikiLeaks
the tax legislation. frastructure, he said the tion through Congress. mer campaign manager. Its Trump had expected to turn to and referred to emails that de-
We dont get it. What a health bill is clearly a no-win But some allies said they going to get accomplished and may not be coming together as tailed paid speeches Mrs. Clin-
waste of time and political issue for the Republicans. were encouraged, not alarmed, theyre continuing to work on quickly as he had hoped. ton had given to major finan-
capital to return to the quag- The renewed focus on by that pursuit now. that. Its a pledge he has made Nick Timiraos cial firms.
mire of health reform, said health care also raises the Just because they didnt and will fulfill. and Michael C. Bender Carol E. Lee
Greg Valliere, chief global prospect of a second embar- achieve success at first on In his interview with the contributed to this article. contributed to this article.

TRUMP Trump changing his mind on


key issues, circumstances were
evolving toward the presi-
dents position.
Continued from Page One Mr. Trumps shifts have
But that view changed ear- raised new questions about
lier this year after he talked to how his base of anti-establish-
Boeing Co. CEO Dennis Muilen- ment voters will react. He has
burg, who explained to him no major legislative victories,
what role the bank plays, said and his top immigration pol-
people familiar with the mat- icya ban on citizens from six
ter. In a recent meeting with Muslim-majority countries
lawmakers, Sen. Heidi Heit- from entering the U.S.has
kamp (D., N.D.) urged Mr. been blocked by the courts.
Trump to fill the banks board Asked last week what was
vacancies, and he told Ms. Mr. Trumps biggest success
Heitkamp that he agreed with for his base, White House
her that the postswhich re- spokeswoman Sarah Sanders
quire a presidential nomina- pointed to the presidents five-
tionshould be filled. year lobbying ban on adminis-
In an interview Wednesday tration officials.
with The Wall Street Journal, But this week, the White
Mr. Trump said he would fill House waived that ban for
the positions, explaining that Marcus Peacock, a senior offi-
he now views the bank as im- cial who left the Office of Man-
portant for small businesses, agement and Budget to join
and that other countries had the Business Roundtable,
similar banks. which lobbies on behalf of ma-
In the interview, Mr. Trump jor corporations. Bloomberg
also changed course on News first reported Mr. Pea-
RANDALL HILL/REUTERS

whether China was manipulat- cocks waiver on Wednesday.


ing its currency. During the We didnt elect Kushner to
campaign, he said it was, but bring a New York establish-
on Wednesday he said it had ment mentality to Washing-
stopped. And in a news confer- ton, said one campaign vet-
ence later on Wednesday, the eran aligned with Mr. Bannon
president said that the North President Donald Trump greets Boeing CEO Dennis Muilenburg at the Boeing South Carolina plant in North Charleston in February. and his political patrons, the
Atlantic Treaty Organization is Trump benefactors Robert and
no longer obsolete, as he had Rebekah Mercer. The reason
repeatedly claimed last year. Donald Trumps mistakenly killed 18 of its own WHATS AHEAD tablish a dialogue on a number we worked so hard and gave so
When asked in the inter- allies in a misdirected airstrike u Mr. Trump plans to meet of important issues. much money was because we
view whether he was lining up First 100 Days in Syria, the U.S. military said. with Prime Minister Paolo Gen- Russian Foreign Minister were promised a nationalist
with the Washington establish- The administrations latest The fighters, members of a tiloni of Italy at the White Sergei Lavrov, according to the revolution. We didnt send him
ment, Mr. Trump said: I dont actions and agenda at a glance Kurdish-Arab coalition allied House on April 20. news agency RIA-Novosti there to go native once he gets
think so, pointing to his deci- with the U.S., provided the co- to Washington, D.C.

21,000
sion to withdraw the U.S. from alition with the wrong coordi- QUOTES Pat Caddell, a pollster for
the Trans-Pacific Partnership THURSDAY nates for the target, the mili- Things will work out fine be- former President Jimmy
trade agreement. u Afghanistan: The U.S. mili- tary said. tween the U.S.A. and Russia. At Carter and a friend of Mr. Ban-
Were getting ready to do tary dropped the largest nonnu- the right time everyone will That is the estimated number of non, said Thursday that if Mr.
certain things as an example clear bomb in its arsenal on an u Family planning: President come to their senses & there people expected to attend the Trumps core voters get a
on tradethey will not be es- Islamic State tunnel complex in Donald Trump signed a measure will be lasting peace! Easter Egg Roll at the White perception that he was mis-
tablishment, he added. eastern Afghanistan, the Penta- that enables states to strip fed- Mr. Trump on Twitter House Monday, press secretary leading them, then he will
The change in direction and gon said. eral family-planning funds from Sean Spicer said. The adminis- have a real problem, because
tonehe is no longer vocifer- womens reproductive-health or- There will probably not be re- tration has recently faced ques- one day theyll look up and
ously attacking China and Mex- u Syria: The U.S.-led military ganization Planned Parenthood sults soon....At least in the oper- tions about its level of prepared- say, You lied to us, too.
ico, and has moderated his coalition battling Islamic State and other abortion providers. ational plan we agreed to es- ness for the high-profile event. That angst, however, does
posts on Twitterhas come as not yet appear to be widely
Mr. Trump has reduced the role shared by the conservative
of his chief strategist, Steve the White House by pointing in the past three months with February departure from the view he was keen to get grass roots. Few are freak-
Bannon, the former executive to Secretary of State Rex Til- Mr. Kushner and Mr. Cohn, and administration of one of the started on renegotiating Nafta. ing, Laura Ingraham, a con-
chairman of Breitbart.com who lerson, a former CEO of Exxon Mr. Ross has been active in voices more hostile to Mexico: But he added, Were doing servative radio host who occa-
personifies the economic na- Mobil; Gary Cohn, who was trying to put the relationship Michael Flynn, Mr. Trumps very nicely with Mexico. sionally advises Mr. Trump,
tionalism Mr. Trump ran on. second-in-command at Gold- back on a more even keel. first national security adviser. Asked whether he would said in an interview on Thurs-
Mr. Bannon has also clashed man Sachs Group Inc. before Multiple U.S. big business Mr. Flynn was an open advo- make any changes to his inner day. Its early. And hes done,
with Mr. Trumps more moder- joining the White House as groups have also been active cate for the border wall and circle in the coming months, and will do, many of the im-
ate aides, such as Mr. Kushner. chairman of the National Eco- lobbying behind the scenes said during a 2016 interview Mr. Trump said, I dont intend portant things his voters want
Speaking about Mr. Ban- nomic Council; and Wilbur with Trump aides to impress that radical Islamist coun- to. He added that he may on the economy, trade and
nons role on Wednesday, Mr. Ross, a billionaire investor. upon them their views on the tries were cutting deals with change his mind. From day to border enforcement.
Trump described his chief Several of those aides and importance of the Nafta trade Mexican drug cartels for some day, I dont know. Peter Nicholas,
strategist as a guy who works advisers have worked to ease pact with Mexico and the U.S. of what they call the lanes of On Thursday, Sean Spicer, Rebecca Ballhaus,
for me. He went on to de- tensions with Mexico. Mexican Another factor in the shift entry in our country. White House press secretary, and Jacob M. Schlesinger
scribe a very good team in officials have dealt extensively on Mexico has been the mid- Mr. Trump said in the inter- said that rather than Mr. contributed to this article.
THE WALL STREET JOURNAL. * * NY Friday, April 14, 2017 | A5

WORLD NEWS
Brazils President Accused of Role in Bribe
Temer denies Mr. Temer to a wide-ranging rating his administration as bad and the PMDB intermediary.
corruption scandal at state- or very bad rose 9 percentage After exchanging pleasant-
allegations he was run oil company Petrleo points from December to 55%. ries, Mr. Cunha took the floor
involved in $40 million Brasileiro SA. It represents a Mr. Faria said the alleged and explained that Messrs.
major landmark in the Car bribe amounted to 5% of a Arajo and Faria were compet-
payment to his party Wash probe, which has impli- contract awarded to Ode- ing for a Petrobras contract
cated scores of high-level poli- brecht by Petrobras interna- and that there would be a very
BY PAUL KIERNAN ticians from all of Brazils tional division, which prosecu- significant contribution to the
AND LUCIANA MAGALHAES main parties but hadnt tors say was controlled by an party if Odebrechts bid should

UESLEI MARCELINO/REUTERS
reached Mr. Temeruntil now. appointee of Mr. Temers win, Mr. Faria said in a video of
RIO DE JANEIROA former Mr. Temer acknowledged party, known as the PMDB. the testimony. I went there to
construction executive said meeting with Mr. Faria but de- The money was paid partly in bless the commitment.
Brazilian President Michel Te- nied that they discussed a bribe. cash and partly through off- Asked by a prosecutor if it
mer was involved in a deal to In an emailed statement late shore accounts, Mr. Faria said. was clear that the payment was
funnel a $40 million bribe to Wednesday, Mr. Temer called PMDB officials didnt respond a bribe, Mr. Faria responded,
his political party. the allegation an absolute lie. to requests to comment. totally a bribe, sir, because it
Mrcio Faria, former indus- The allegations are likely to Michel Temer, right, called the allegation an absolute lie. Mr. Faria said the payment was a percentage of a contract.
trial engineering chief of Ode- fuel the protracted political was requested by a PMDB in- In his statement, Mr. Temer
brecht SA, Latin Americas crisis that has roiled Brazil for rent and former Odebrecht ex- acts he committed before he termediary with Petrobras and countered that the conversa-
largest construction firm, told three years and led to the im- ecutives, was released after Su- took office last year following agreed upon before his meet- tion, fast and superficial, did
authorities that he met with peachment of former President preme Court Justice Edson the ouster of Ms. Rousseff. ing at Mr. Temers So Paulo not involve money or Petro-
Mr. Temer in 2010 and agreed Dilma Rousseff last year. They Fachin authorized a new wave But Mr. Farias allegations office in July 2010. bras. He also categorically
to make the payment to the also come just as Mr. Temer is of corruption probes against could deal a major blow to the At the meeting, Mr. Temer contested any involvement of
presidents Brazilian Demo- struggling to push a key over- top politicians this week. In all, presidents credibility at a time sat at the head of the table, his name in murky business.
cratic Movement Party. haul of Brazils pension sys- the probes target a third of Mr. when Mr. Temer already is Mr. Faria said. Also in atten- Mr. Alvess lawyer said in a
The statement, made in tem, and other economic re- Temers cabinet, 50 legislators short on political capital. A poll dance were Odebrecht execu- statement that the congress-
plea-bargain testimony re- forms, through Congress. and four former presidents. released in late March put his tive Rogrio Arajo, PMDB man vehemently repudiates
leased late Wednesday, is the Mr. Farias testimony, part As head of state, Mr. Temer approval at just 10%, while the congressmen Eduardo Cunha Mr. Farias claims. Mr. Cunhas
most direct allegation linking of a mass plea bargain by cur- cant be prosecuted for any number of survey respondents and Henrique Eduardo Alves, lawyer declined to comment.

Venezuelan Protester Dies From


Gunshot Wound, Authorities Say
CARACAS, VenezuelaThe vi- ernment unrest.
olent clashes between protesters The opposition has promised
and Venezuelan pro-government to keep pressure on Mr. Maduro
forces claimed a fifth life Thurs- until he releases political prison-
day as groups opposed to Presi- ers and calls general elections.
dent Nicols Maduro gathered for The government has called pro-
a new round of demonstrations. testers terrorists bent on stag-
Gruseny Calderon, a 32-year- ing a coup and called on sup-
old demonstrator, died in a hos- porters to defend their so-called
pital from a gunshot wound he Socialist Revolution at all cost.
received from a pro-government Four out of the five protester
follower in a protest on Tues- deaths in this wave of violence
day in western Lara state, ac- were caused by armed pro-gov-
cording to the states governors ernment paramilitary groups
office. Police or pro-government known as colectivos, according
militias in the past week also to opposition politicians.
shot dead four more Venezue- These groups allow the gov-
lans, including a 13-year-old pro- ernment to repress the protests
tester, according to the national without taking responsibility for
public prosecutors office. the violence, said Ricardo Villas-

MARCO BELLO/REUTERS
The public prosecutors office mil, public policy professor at
has announced only one arrest. Caracass Catholic University.
Mr. Maduros aborted attempt The idea is to defuse the
last month to take over con- protests through terror, he said.
gress has triggered the biggest The government hasnt com-
challenge to his rule since 2014, mented on the allegations.
when 43 people died in antigov- Anatoly Kurmanaev Demonstrators rallied against Nicols Maduro in Caracas Thursday. The president is facing the biggest challenge to his rule since 2014.

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A6 | Friday, April 14, 2017 * * THE WALL STREET JOURNAL.

WORLD NEWS

U.S. Sanctions Brother of Iran Spy Master


Move against Sohrab also sanctioned the Tehran of Mr. Soleimani was in com-
Prisons Organization, which it pliance with the nuclear deal.
Soleimani comes for said is responsible for or U.S. lawmakers have been
alleged violations complicit in the committing of calling in recent weeks for the
serious human rights abuses U.S. to further impose sanc-
of human rights against political prisoners tions on Iran for its nonnu-
housed in Evin Prison. clear activities.
BY JAY SOLOMON Sohrab Soleimani was the They specifically cited
head of the Tehran Prisons Or- Irans continued detention of
WASHINGTONThe Trump ganization during this violent four U.S. nationals and two
administration Thursday sanc- event, the Treasury Depart- U.S. green-card holders as jus-
tioned the brother of Irans ment said in a statement. tification for more penalties.
top spy master and military The Iranian Mission at the Iran has accused most of these
strategist for alleged human- United Nations couldnt imme- Americans of espionage, a
rights violations, amid grow- diately be reached for com- charge they have denied.
ing calls by Congress for the ment. A bipartisan group of U.S.

SIPA FRANCE/ASSOCIATED PRESS


White House to confront Teh- The U.S., Iran and five other lawmakers wrote Treasury
ran and bring home U.S. citi- global powers reached a land- Secretary Steven Mnuchin last
zens still imprisoned in the mark nuclear agreement in week and noted that Iran
country. 2015 that curtailed Tehrans hadnt been sanctioned for any
Successive U.S. administra- nuclear capabilities in return human-rights violations since
tions have fixated on curtail- for the lifting of most interna- the nuclear agreement was
ing the activities of Maj. Gen. tional sanctions. reached in July 2015.
Qasem Soleimani, commander The U.S., however, said it White House spokesman
of international operations of Maj. Gen. Qasem Soleimani, whose brother Sohrab Soleimani was sanctioned Thursday, is seen in 2013. maintains the right to sanction Sean Spicer called for the re-
Irans elite military unit, the Iran for nonnuclear activities, lease of the American citizens
Islamic Revolutionary Guard The U.S. and its Middle East Gen. Soleimanis brother, violently suppress a prison up- such as human-rights viola- and residents on Thursday. He
Corps. allies also said they have seen Sohrab Soleimani, who has rising in Tehrans Evin prison tions and its support for Mid- specifically cited Siamak Na-
U.S. intelligence agencies Gen. Soleimanis hand in Revo- been accused of committing in 2014. Many of Irans top po- east-based militant groups. mazi and his father, Baquer
believe Gen. Soleimani is over- lutionary Guard military activ- human-rights violations as litical dissidents are jailed in Iranian officials in the past Namazi, who are both impris-
seeing Irans military opera- ities in Iraq, Yemen, Lebanon head of the Tehran Prisons Or- Evin, as are U.S. and European have challenged this interpre- oned in Evin.
tions in Syria, which are de- and the Palestinian territories. ganization. citizens accused of espionage tation of the deal. Members of their family say
signed to prop up the regime On Thursday, the U.S. Trea- Human-rights groups have and other offenses. The Trump administration the men are facing serious
of President Bashar al-Assad. sury Department sanctioned alleged Mr. Soleimani helped The Treasury Department said Thursday the sanctioning health issues.

Moscow Is Cool on Prospects for Relations With U.S.


BY NATHAN HODGE us, its fabrication, Mr. Assad tion, but added that the Rus- senses & there will be lasting
ALEXEI DRUZHININ/AGENCE FRANCE-PRESSE/GETTY IMAGES

said in the interview on sian president gave his inter- peace!


MOSCOWRussian officials Wednesday in reference to the locutor a very detailed view of Russia and Iran have formed
gave a restrained assessment of alleged chemical-weapons at- the reasons that led our bilat- a military and diplomatic alli-
U.S. Secretary of State Rex Til- tack. eral relations to the sad state ance to support Mr. Assad, and
lersons visit to Moscow, saying Our impression is that the they are in now, Russian news the Trump administration has
Thursday that it was too early West, mainly the United States, agencies said. looked for ways to drive a
to say if friendlier ties could be is hand in glove with the ter- Russian Foreign Minister wedge between the two coun-
restored between Washington rorists. They fabricated the Sergei Lavrov was also mea- tries in hopes of bringing an
and Moscow. whole story in order to have a sured in his assessment. There end to the Syrian conflict. Last
Mr. Tillerson met with Rus- pretext for the attack. will probably not be results weeks strike, however, has
sian President Vladimir Putin With Moscow and Washing- soon, he said, according to sharpened anti-American rheto-
on Wednesday amid a tense ton still at odds over Syria, news agency RIA-Novosti. But ric from Russia and Iran.
diplomatic standoff over a sus- Kremlin spokesman Dmitry Pes- at least in the operational plan Moscow will host the foreign
pected chemical attack last kov said Thursday that Mr. Pu- we agreed to establish a dia- ministers of Syria and Iran on
week in Syria. The U.S. has ac- tin didnt see any breakthrough logue on a number of important Friday for three-way discus-
cused the Russia-backed regime Russian President Vladimir Putin entering a meeting at his in Russian-American relations issues. sions. Russian Foreign Ministry
of Syrian President Bashar al- country residence outside Moscow on Thursday. after Mr. Tillersons visit, ac- President Donald Trump, by spokeswoman Maria Zakharova
Assad of using sarin gas in the cording to Russian news agen- contrast, gave a more optimis- said on Wednesday that the
April 4 attack on the town of for attempting to unseat Mr. Syrian president said the sus- cies. tic reading. Things will work aim of the talks was prevent-
Khan Sheikhoun, and carried Assad. pected gas attack was a fabri- Mr. Peskov described out fine between the U.S.A. and ingthe undermining of efforts
out a missile strike in response. In an interview with the cation to justify a U.S. military Wednesdays meeting between Russia, he said on Twitter on for a political settlement in
Russian officials have dismissed Agence France-Presse news strike. Messrs. Putin and Tillerson as Thursday. At the right time ev- Syria in the face of U.S. armed
the chemical attack as a pretext agency published Thursday, the Definitely, 100 percent for quite constructive communica- eryone will come to their aggression against Damascus.

WORLD WATCH
WSJ TALK / E XPE RI E NCE / O FFER / GE TAWAY
DEBAJYOTI CHAKRABORTY/ZUMA PRESS

READY TO CELEBRATE: A young man takes a selfie as he prepares to celebrate the Hindu festival of
Gajan in Kolkata. Gajan coincides with the birth of Lord Shiva, according to Hindu mythology.

CANADA RUSSIA GERMANY


Bill Is Introduced Government Faulted Suspected Fighter

Watch Movies To Regulate Pot


Canadas Liberal government
followed through on a 2015 cam-
In School-Siege Case
Europes top human-rights
court ruled that Russia failed to
For ISIS Detained
An Iraqi man detained during
the investigation into the bomb-

Under the
paign promise by Prime Minister protect human lives during a ing of the bus carrying the Bo-
Justin Trudeau and introduced botched 2004 attempt to rescue russia Dortmund soccer team is
legislation aimed at regulating the hostages from a school that left believed to have fought for Is-
sale and production of marijuana. more than 330 people dead, in- lamic State in Iraq, Germanys
Details still need to be cluding 180 children. top prosecutor said, but added

Stars worked out, the government


said Thursday, including how
cannabis will be taxed and how
provinces will regulate the retail
network in which the product
The European Court of Hu-
man Rights on Thursday ordered
Russia to pay 3 million total
($3.2 million) to the families of
hundreds of victims.
that no evidence has emerged
showing the man participated in
the attack.
Evidence suggested the 26-
year-old man, identified as Abdul
will be sold. A few months after President Beset A., joined Islamic State in
The main goal, the govern- Vladimir Putin started his sec- Iraq around 2014 and led a 10-
Set against New York Citys panoramic views and ment said, is to control the pro- ond presidential term in Septem- person unit that took part in kid-
stunning sunsets, relax in a comfortable deck chair duction, distribution, sale and ber 2004, Chechen gunmen de- nappings and killings, the prose-
and watch cult favorites, classics and new releases possession of marijuana, and manding independence took cutor-general said. Abdul Beset
keep it out of the hands of crim- more than 1,100 hostages in the A. moved to Germany in 2016
with Rooftop Cinema Club. WSJ members have inal organizations. Criminal of- Russian town of Beslan and held and continued to stay in contact
access to exclusively reserved tickets and free fenses for illicit production and them through a three-day siege. with members of Islamic State,
popcorn. trafficking will remain in place. In their ruling, the panel of the prosecutor said.
If approved by both chambers judges said Russian authorities A spokesman for the prose-
of Parliament, it will be legal by used tank cannons, grenade cutor said an initial clue sug-
mid-2018 in Canada for a person launchers and flamethrowers to gested the man may have been
18 or older to purchase cannabis storm the school, contributing to involved in the attack, but sub-
EXCLUSIVE TO WSJ MEMBERS from licensed producers and pos- casualties among hostages. sequent investigation failed to
BOOK NOW AT WSJPLUS.COM/RCC sess up to 30 grams (1.1 ounce) The Russian government also bear that out.
of the drug when in public. failed to prevent the attack de- Instead, new evidence
The legal framework marks a spite having specific informa- emerged as part of the investi-
significant pivot by a large, de- tion of a planned terrorist attack gation that the man had been
veloped-world economy in deal- in the area, linked to an educa- involved in Islamic State. Author-
ing with the marijuana trade, tional institution, they said. ities detained the man Wednes-
and Canada would become the The Russian Ministry of Jus- day and searched his apartment
biggest national government to tice called the ruling ground- as they hunted for clues in the
2017 Dow Jones & Co., Inc. All rights reserved. 3DJ5351 legalize marijuana. less, and promised to appeal. bombing of the bus.
Paul Vieira Valentina Pop Anton Troianovski
THE WALL STREET JOURNAL. * * * * Friday, April 14, 2017 | A7

WORLD NEWS

U.S. Mistakenly
Bombs Allies in
Syria, Killing 18
BY DION NISSENBAUM mistake by a Syrian rebel co-
alition, known as the Syrian
WASHINGTONThe U.S. Democratic Forces.
military mistakenly killed 18 of Backed by U.S. airstrikes
its own allies in Syria in a mis- and American special-opera-
directed airstrike meant to hit tions forces in Syria, the SDF
Islamic State fighters, Penta- has been trying to seize con-
gon officials said Thursday. trol of a major Euphrates

HAWAR NEWS AGENCY/ASSOCIATED PRESS


Members of a Kurdish-Arab River hydroelectric dam held
coalition allied with the U.S. by Islamic State.
were killed after providing the On Tuesday, the forces near
U.S. with the wrong coordi- Tabqa Dam asked the U.S.-led
nates for an enemy target dur- coalition to carry out an air-
ing a battle with Islamic State strike on Islamic State fighters
fighters earlier this week, the in the area, the military said.
military said. But it instead turned out to be
The mistaken strike comes an SDF front-line position.
amid a spike in reports of ci- This is just one of those
vilian casualties as the U.S. tragedies, said one senior U.S.
military is intensifying its defense official familiar with a Fighters from the Syrian Democratic Forces on Thursday carrying the coffins of their comrades killed in a misdirected U.S. airstrike.
campaign to drive Islamic continuing investigation of the
State from its two biggest strike. It leads us all to be- ing a long line of coffins cov- The U.S. military has scores providing more firepower to tack and said it was looking to
strongholds: Raqqa, Syria, and lieve, tragically, that the SDF ered with flowers and the of special-operations troops the SDF, a move opposed by establish new safeguards to
Mosul, Iraq. called in a strike on their own SDFs flag through a crowd. working alongside the SDF. It Turkey, which views Kurdish prevent further friendly fire
In this case, U.S. defense of- position. In a statement, the SDF has also sent hundreds of Ma- forces in the coalition as ter- incidents.
ficials said, the airstrike on Kurdish activists released characterized the incident as a rines to help provide artillery rorists. Tamer El-Ghobashy
Tuesday appeared to be the photos on social media show- painful accident that was support in Syria. The Trump The U.S. military expressed in Baghdad
result of a tragic battlefield ing members of the SDF carry- due to a mistake. administration is looking at regrets about the mistaken at- contributed to this article.

Splits Within Iraqs Three Groups Reshape Its Politics


country. They also could that have reverberated far Kurdistan President Masoud Shiite lawmaker Salah Abdul But after elections, an alli-
bring it closer together, cre- beyond its borders since the Barzani and to position him- Razaq, said the time has come ance is a possibility.
ating a new environment 2003 U.S.-led invasion. self as a war leader. to unite representatives of

M
where political agendas One milestone looming is Mr. Maliki, meanwhile, has Iraqs three main population r. Barzaniwhose
trump the allegiances of sect parliamentary elections reached out to Mr. Barzanis groups behind a single politi- term expired in
and ethnicity. scheduled for April 2018 that rivals in Kurdistan and to the cal project and leadership. 2015has been fac-
We now have splits also will determine the fate Sunni speaker of parliament The nature of Iraq now ing a major political chal-
MIDDLE EAST CROSSROADS within the Shiites, within the of Prime Minister Haider al- as he successfully pushed requires that we move from lenge within Kurdistan itself.
YAROSLAV TROFIMOV Sunnis, and within the Abadi. The fragmentation of through no-confidence mo- ethnic and sectarian conflict His party, which controls the
Kurds. For an average citi- the political scene makes it to political competition in- regional capital Erbil, has
zen, this is not necessarily a difficult to a form a strong side parliament, he said. physically prevented the re-
MOSUL, IraqConven- bad thing, said Sajad Jiyad, government able to imple- Regardless of whether Mr. gions parliament from nam-
tional wisdom holds that managing director of the Al- ment overdue changes. But it
For an average Maliki, with his history of ing a successor, essentially
Iraq is a nation starkly di- Bayan Center for Planning could also render the country citizen, [the splits marginalizing Sunnis and shuttering the legislature.
vided among its three main and Studies, a Baghdad think more stable by preventing Kurds, could lead such a For now, that intra-Kurd-
components: Shiite Arabs, tank. It would help change another sectarian overreach
are] not necessarily a project, few consider the ish conflict combined with
Sunni Arabs the sectarian discourse and by the Shiite majorityor a bad thing. emergence of a pan-Iraqi po- the global oil slump has
and Kurds. alignment that has been long-mulled secession by the litical movement likelyat muted the prospect of Kurd-
Yet, an- prevalent until last year. autonomous Kurdistan region least not before elections. istans independence.
other dy- in northern Iraq. In elections, Kurds will We are on the threshold

T
namic is he issue of how Iraqs Among Iraqs Shiite com- tions against the ministers of vote for the Kurds, Sunnis of another civil war here,
gaining im- political life develops munity, the rivalries run defense (a Sunni) and finance will vote for the Sunnis, and warned Yousif Sadiq, speaker
portance. after the ouster of Is- straight through the biggest (a Kurd) last year. A third Shiites will vote for the Shi- of Kurdistans parliament
Each of these three groups lamic State from its strong- Shiite party, Dawa, to which Shiite force, led by cleric Mo- ites. Not a single Kurd will who hasnt been able to en-
as well as the smaller com- hold of Mosul is of critical Mr. Abadi and his main rival, qtada al-Sadr, engineered vote for an Arab, not a single ter Erbil since 2015.
munities such as the Yazidis importance to the Middle former Prime Minister Nouri massive protests last year as Sunni will vote for a Shiite, With most of Iraqs Sunni
and Christiansis beset by East. Several of Iraqs neigh- al-Maliki, belong. it claimed to represent the and not a single Shiite will areas devastated by war
deepening internal rivalries. bors and allies have been Mr. Abadi has deftly used will of the people while im- vote for a Sunni, said Fuad against Islamic State, the
These political cleavages drawn into the countrys sec- the Mosul campaign to strike plicitly supporting Mr. Abadi. Hussein, chief of staff of Sunni Arab political scene is
could further destabilize the tarian and ethnic conflicts an unlikely alliance with One of Mr. Malikis allies, Kurdistan President Barzani. even more fragmented.

BOMB in the country.


That operation cost the life
of Staff Sgt. Mark De Alencar, a
37-year-old Green Beret from
MOAB Was Aimed
At Deterrence, Too
size acting to deter enemies.
The weapon is designed to
explode in the air over a tar-
Continued from Page One Edgewood, Md., who was killed get, and doesnt penetrate into
off Korea as a show of force to in a firefight in Nangarhar on the ground before exploding.
North Korea. The allied official April 8, according to the mili- The Mother of All Bombs The Massive Ordnance Pene-
in Afghanistan said, however, tary. was intended to be used in tratorthe largest nonnuclear
that the use of the big bomb U.S. officials said Sgt. De combat, but it was also de- weapon in the arsenalis de-
wasnt designed as a message Alencars death was very much signed just to sit there. The signed to burrow into the
to Pyongyang. on their minds when com- mere existence of the weapon ground on impact before deto-
Mr. Trump, when asked if manders decided to escalate was supposed to serve as a nating.
the action served as a warning the air campaign. psychological weapon, its sheer Ben Kesling
to North Korea, said: I dont We lost a soldier because
know if this sends a message, it of the booby traps and [impro-
doesnt make any difference if vised explosive devices] around

8CIGARS*
it does or not. North Korea is a caves, said the allied official.
problem, the problem will be We will lose Afghan and U.S.
taken care of. lives trying to clear those
The incident comes as Af- caves.
ghan and U.S. troops continue White House press secretary

ONLY 10
$
to fight a two-front war in Af- Sean Spicer said the attack
ghanistan, fending off attacks took place around 7 p.m. local
from the Taliban, who ran the time in Afghanistan. We tar-
country until late 2001, and geted a system of tunnels and
Islamic State, which arrived caves that [Islamic State] fight-
in 2014. The two insurgent ers used to move around
forces sometimes clash with freely, Mr. Spicer said.
each other and sometimes The U.S. military has been
work in tandem. bombing Islamic State positions
Islamic State fighters have in the area almost daily for
largely been holed up in Kunar Gen. Nicholson didnt re- stan in 2001 after concluding more than a year, but the rate of
and Nangarhar provinces, quire special permission to de- that the Taliban had allowed such strikes has increased dra-
along the mountainous Paki- ploy the giant bomb, said a Osama bin Laden to plan the matically since Mr. Trump took
stan border. As [Islamic spokesman for U.S. forces in Sept. 11 attacks from sanctuary office in January. The past two
States] losses have mounted, Afghanistan. The Afghan Minis- on Afghan soil. At one point months have seen the greatest
they are using [improvised try of Defense didnt know there were more than 100,000 number of bombs dropped in
bombs], bunkers and tunnels to about the bomb strike, a minis- U.S. troops in the country. Afghanistan since 2013, accord-
thicken their defense, said U.S. try spokesman said. The tempo of U.S. and Af- ing to U.S. Air Force data. A
Gen. John Nicholson, com- There are currently around ghan operations against Is- large proportion of these muni-
mander of allied forces in Af- 8,500 American troops in Af- lamic State has stepped up in tions have been dropped over
ghanistan. This is the right ghanistan, many of them Green recent weeks. U.S. and Afghan Islamic State strongholds.
munition to reduce these ob- Berets and other special-opera- commandos are carrying out a While the U.S. is concerned
stacles and maintain the mo- tions forces. Another 6,000 or 10-day offensive in Nangarhar about Islamic State in Afghan-
$
52
mentum of our offensive so allied forces remain. The U.S. province, where Islamic State istan, the militarys main focus
against Islamic State. and its allies invaded Afghani- retains its strongest presence remains the resurgent Taliban,
which poses a more existential
threat to the U.S.-allied Kabul
government. The Taliban re- Value
mains the priority, but cer-
tainly we want [Islamic State]
to know that theyre not wel- Includes 1 each of:
come, said a senior U.S. mili- Torao HC 5 Vegas Cuba Libre Jesus Fuego
EGLIN AIR FORCE BASE/ASSOCIATED PRESS

tary official. La Perla Habana Alec Bradley Rocky Patel

The caves targeted on *Plus $299 s/h. PA residents add 6% tax taxes on orders shipped outside of PA are
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The GBU-43/B Massive Ordnance Air Blast bomb, shown in a photo from Eglin Air Force Base. contributed to this article.
A8 | Friday, April 14, 2017 NY THE WALL STREET JOURNAL.

WORLD NEWS

U.S. Faces Test Over North Korea Duterte


Withdraws
China ties complicate
American strategy as
Pyongyang appears to
A Threat
ready weapons trial On Islands
BY JAY SOLOMON BY JAKE MAXWELL WATTS
AND CAROL E. LEE
Philippine President Ro-
WASHINGTONNorth Korea drigo Duterte said China had
appears prepared to stage its gently admonished him for his
sixth nuclear weapons test as aggressive tone over a territo-
soon as this weekend, current rial dispute in the South China
and former U.S. officials said, Sea, and in response he had
placing immediate pressure on withdrawn a threat to raise his
President Donald Trump and nations flag on contested is-
his efforts to improve bilateral lands.
relations with China. On a visit Saudi Arabia, the
Mr. Trump, in an interview fiery presidentspeaking dur-
with The Wall Street Journal ing a long and rambling
ED JONES/AGENCE FRANCE-PRESSE/GETTY IMAGES

on Wednesday, hailed his re- speech to Filipinossaid he


cent meetings with Chinese had withdrawn the threat be-
President Xi Jinping as poten- cause he values Chinese
tially opening a new path to- friendship.
ward cooperation with Beijing He said China told him: If
to constrain North Korean every head of state of the con-
leader Kim Jong Uns regime. tending parties there around
He specifically cited possible the West Philippine Seathey
U.S. flexibility toward Beijing call it the [South] China Sea
in upcoming trade talks if it will go there to plant their
shows a willingness to pres- flags, there will be likely trou-
sure Pyongyang. ble.
But stepped-up prepara- Mr. Duterte then said he
tions in recent days by North Kim Jong Un, second from right, attending a ceremony for the opening of a housing project in Pyongyang on Thursday. would consider sending his
Korea at its Punggye-ri nu- son instead, as the blood of
clear-weapons site, in the Sung, to display a show of is moving the Carl Vinson Car- I dont know if this sends a pability to intercept North Ko- the claimant.
northeast of the country, sug- force. Senior U.S. officials have rier Strike Group to the waters message, it doesnt make any rean missile tests, which have Lu Kang, a spokesman for
gest a challenge to the interna- said they are anticipating ei- off the Korean Peninsula as a difference if it does or not, he largely been staged over the Chinas Foreign Ministry, said
tional community could break ther a North Korean nuclear deterrent against North Korea, said. North Korea is a prob- Sea of Japan. Beijing is happy to see the
as early as this weekend, said test, the countrys sixth, or an- according to U.S. officials. lem, the problem will be taken U.S. officials said they worry Philippine side working more
these U.S. officials. Such a test other in a string of ballistic- On Thursday, Mr. Trump ac- care of. any such missile intercepts closely with the Chinese side.
could constrain Mr. Trumps missile tests. knowledged the Pentagon But senior Trump adminis- could lead to a military escala- A week ago, Mr. Duterte
efforts to develop with China a Satellite imagery taken of dropped one of its largest tration officials, in private, tion in Northeast Asia, where said he would send Filipino
longer-term approach toward Punggye-ri in recent days has bombs, known as the Massive played down the prospect of the U.S. has tens of thousands troops to occupy and fortify all
reining in Pyongyang. shown the continued move- Ordnance Air Blast Bomb, or the U.S. taking military action of troops stationed in South ocean features controlled by
North Korean state media ment of North Korea military MOAB, on Islamic State tar- in response to any North Ko- Korea and Japan. These offi- Manila and that he was plan-
has warned the government personnel at the site, as well gets in Afghanistan. Asked if rean provocation this week- cials acknowledged Chinas po- ning to visit one of the islands
could use its national holiday as mounds of dirt from exca- the action served as a warning end, though they didnt rule it tential response to a U.S. inter- personally to raise his coun-
on Saturday, the birthday of vation there. to North Korea, Mr. Trump de- out. U.S. defense officials have cept also was a factor in trys flag on June 12, Indepen-
the countrys founder, Kim Il The Trump administration murred. said the Pentagon has the ca- devising an American strategy. dence Day in the Philippines.

How Suspects Became Cogs in Kim Jong Nam Killing


BY JOHN LYONS killed Mr. Kim, he said. she left school and began work- man outside a nightclub with
AND BEN OTTO South Korean officials say ing at Seventeen Cowboys, a an offer to appear in prank vid-
the killing was orchestrated by now-closed bar in Hanoi featur- eos, according to Mr. Gooi. The
NGHIA BINH, VietnamAs North Korea, and allege both ing staff in cowboy outfits, said man introduced her to another
the youngest of five in a farm- women were recruited by the manager Bui Anh Duc and a North Korean suspect whom
ing family living on the edge North Korean agents. female co-worker. Malaysian police have identi-
of vast rice paddies, Doan Thi Yet the eight North Korean In mid-December, having left fied as Ri Ji U, Mr. Gooi said.
Huong was raised for better suspects Malaysia identified that job, Ms. Huong says she Ms. Aisyah says Ri Ji U be-
things. The family pooled have all left Malaysia and are was approached by a man her gan asking her to approach
VINCENT THIAN/ASSOCIATED PRESS

money so she could go to believed to be back home. lawyers identified as Ri Jae strangers in malls, airports and
school in Hanoi instead of toil In court on Thursday, de- Nam, according to Mr. Gooi, casinos, and put liquids like
in the fields. fense teams for the two who is preparing a joint de- Tabasco sauce on their hands
What her family didnt know women said police werent co- fense with Ms. Huongs lawyers. or faces, Mr. Gooi said. She
was that Ms. Huong had operating with them; they Ms. Huongs lawyers declined says she earned around $100
dropped out of school and asked again that authorities to comment on their defense. for each prank, said Mr. Gooi.
ended up working in a bar; by hand over CCTV footage from South Korean officials have The week before the attack
the beginning of this year she various locations. Defense law- said Ri Jae Nam was one of on Mr. Kim, Ms. Huong and Ri
was meeting with men who yers also asked that Malaysian two North Koreans who re- Ji Hyon flew from Hanoi to
South Korean officials say were Doan Thi Huong, center, as she left court in Malaysia on Thursday. police provide statements cruited Ms. Huong for the at- Kuala Lumpur.
North Korean agents. taken from the three North tack on Mr. Kim. The second On Feb. 13, Ms. Huong says
Now, Ms. Huong and another pected to grow up to be suc- the woman with cropped red Korean suspects. man, Ri Ji Hyon, is the son of a she was at the airport in Kuala
woman, if convicted, face the cessful, said Doan Van Binh, an hair and an LOL T-shirt North Korea has denied any former North Korean ambassa- Lumpur with Ri Ji Hyon for
death penalty for allegedly mur- older brother. caught in security footage lung- connection with the killing. A dor to Vietnam, a Vietnamese what she thought was another
dering Kim Jong Nam, the half Malaysian authorities say ing at Mr. Kim from behind. person at North Koreas embassy official said. prank, said Mr. Gooi. Ms. Ai-
brother of North Korean leader Ms. Huong, 28, and a 25-year- The women say they in Hanoi declined to comment; In late January, Ms. Huong syah says she was there too,
Kim Jong Un. Both women ap- old Indonesian woman named thought they were acting in a repeated calls to the embassy in returned home. That same with Mr. Hong, who applied
peared in court Thursday morn- Siti Aisyah, knowingly killed prank TV show, said Gooi Soon Kuala Lumpur went unanswered. month, the Indonesian suspect, something on her hands amd
ing for the second time; a judge Mr. Kim on Feb. 13, by smearing Seng, lead lawyer for Ms. Ai- Ms. Huong left her village Ms. Aisyah, who Malaysian po- directed her toward a target,
scheduled their next appear- the banned nerve agent VX on syah. The defense lawyers will in northern Vietnam at 18, to lice say had been working as a said Mr. Gooi. Both women say
ance for May 30. his face in Kuala Lumpurs main likely also question whether it study to become a pharmacist. spa masseuse in Kuala Lumpur, they apologized to their mark
She was the one we all ex- airport. Ms. Huong is allegedly was the womens actions that Unbeknown to her family, says she was approached by a before slipping off, he says.

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THE WALL STREET JOURNAL. Friday, April 14, 2017 | A9

IN DEPTH

CHINA This year, the PBOCs tight-


ening of credit has caused a
spike in borrowing costs for
banks and many small and pri-
Continued from Page One vate manufacturers that rely on
dates, it could imperil Chinas short-term funding. Interest
economic growth, say many rates on a popular form of
economists, including Yu short-term debt, discounted
Yongding, a senior economist at bills, among private manufac-
Chinese Academy of Social Sci- turers such as makers of cell-
ences, a government think tank. phone parts have jumped to
Mr. Yu, a former adviser to 4.3% from 3.5% early this year.
the central bank, says the The increase comes as many
banks emphasis on propping companies are struggling to
up the yuan has constrained its pay off debts. Loan defaults are
ability to fight other economic also piling up at Chinese banks,
ills such as persistent housing hurting their ability to goose
bubbles. The issue of the ex- the economy at the govern-
change rate, he says, has be- ments behest. And Chinese

QILAI SHEN//BLOOMBERG NEWS


come shackles on policy mak- companies have been putting
ers ability to take other off or scrubbing bond issu-
necessary actions. ancea growing funding
Simply put, Chinas cur- source for Chinese industryat
rency-first policy is risky be- a pace rarely seen before. In
cause the country now faces the first quarter, 130 companies
what economists call the tri- dropped or delayed 119.95 bil-
lemma, the theory that a lion yuan ($17.4 billion) in
country cant at once have a Peoples Bank of China has shifted priorities toward preventing the currency from cratering. The central banks headquarters, above. bond-issuance plans, according
controlled exchange rate, free to database Wind Information
capital flow and independent sidelined its traditional mone- trollable capital flightbatter- Co., the highest amount for the
monetary policy. tary-policy role because it must ing confidence in the Commu- Defense Mechanism quarter since Wind started col-
The PBOC had been preoccu- now consider the effect on the nist Party. Beijing has spent foreign reserves in a bid to prop up its currency's lecting the data in 2014.
pied with the yuans downward yuan before providing banks A weaker yuan also makes it value The PBOCs shift toward
slope for 2 years, spending with more funds, government harder for Chinese companies, yuan defense has it following
close to $1 trillion to keep it advisers say. The PBOC has from state banks to airlines, to China's foreign-exchange reserves its U.S. counterparts interest-
from weakening too fast. In tightened its hold on credit service their more-than-$1 tril- $4 trillion rate moves, something it rarely
2016, though, the falling yuan since December to reduce pres- lion foreign debt. Such compa- did before. In December, as the
was continuing to motivate sure for capital outflows. nies draw most of their revenue Fed raised interest rates, the
Chinese to send money over- That tightening might help from domestic businesses, and 3 PBOC sharply curtailed its rou-
seas and was eroding faith in prod some businesses to cut a weakening Chinese currency tine fund injections, driving up
Chinas economic management. back on excessive borrowinga requires them to expend more short-term borrowing costs. On
Going into 2017, a year that stated government goal. But it yuan to pay off the same 2 March 16, just hours after the
for Mr. Xi is all about launching is also creating unintended amount of dollar debt. Fed lifted rates again, the PBOC
his second term, Beijing con- stresses, including heightened Chinese airlines, for example, pushed up a series of short-
cluded the PBOC had to go a risks of a full-blown cash have been trying to pare the 1 term rates to narrow any gap
step further and put the yuans squeeze in the financial system, huge dollar debts they racked that could send money fleeing.
defense at the central banks says Zhu Chaoping, China econ- up in years when the yuan was While many economists see
center stage, government offi- omist at UOB Kay Hian Holdings strong, mostly to buy planes 0 higher U.S. rates as appropri-
cials and advisers say. Since Ltd., a Singapore investment from Boeing Co. and Airbus SE. 2015 16 17 ate, they say China can ill af-
December, the PBOC has bank. The PBOC is between a Pressure to service that now- ford them with its paralyzing
strengthened limits on the abil- rock and a hard place. pricier debt could force them to ...while its central bank has pushed up short-term interest rates to debt levels among companies
ity of businesses and individu- Beijings 2017 yuan defense cut back domestic investment help stem the ow of money out. and municipalities and anemic
als to send money abroad, harks to 2014. For years, China and jobs, and threaten them private investment in manufac-
while raising short-term inter- bought dollars and sold yuan, with insolvency. That could Shanghai Interbank Offered Rate turing and other operations
est rates. A PBOC press official drawing Western criticism that propel even more outflows, fur- 6% that generate jobs and improve
said the central bank declined it kept its currency undervalued ther weakening the currency, productivity.
to comment. to promote Chinese exportsa said Sheng Songcheng, a senior Less than a week after the
cheaper yuan meant lower dol- adviser at the PBOC, in a De- 5 PBOCs rate move, some small
lar prices for its products. cember interview. The potential rural banks on March 20 failed
Impossible trinity In the summer of that year, for that type of negative-feed- to repay loans from other
For most of the past decade, it shifted course. After years of back loop, he said, makes stabi- 4 banks, unable to borrow at the
Beijing seemed to defy the tri- growth, when money was pour- lizing expectations for the yuan higher rates to settle short-
lemma, or impossible trinity, ing in, the slowing economy an urgent task. term debts. Emergency PBOC
as some call it, as it slowly was driving cash away, and the Beijings moves to stabilize 3 funding temporarily restored
lifted capital controls without PBOC sold dollars to prop up the yuan, though, threaten its fi- calm, but the episode raised
the yuan or interest rates spin- the yuan. Since then, the PBOC nancial stability elsewherethe concerns about the financial
ning out of control. You can has spent $1 trillion, a quarter consequences of the trilemma. 2 systems stability.
have a combination of all of its currency reserves, to con- The moves since December Into 2017, the PBOC has
2015 16 17
three, Yi Gang, a deputy cen- trol the yuans fall. to add new barriers to capital gained breathing room from a
tral-bank governor, said last When dollar selling wasnt outflows have given many for- Sources: Wind (foreign-exchange reserves, Shanghai rate, yields) softening dollar and a measure
year in a panel discussion with enough, it added stricter capi- eign investors pause. We have THE WALL STREET JOURNAL. of economic stability fueled by
former U.S. Federal Reserve tal controls and other measures to be sure that if we put money stimulus spending by the gov-
Chairman Ben Bernanke. over the following years, while in, we can take it out, says Da- And those barriers also call into to hold in reserve, so they can ernment, which last year
The PBOC has backed off publicly repeating a mantra vid Loevinger, a managing di- question Beijings 2015 promise make more loans. China now stepped up funding of roads and
that notion. By tightening con- that the yuan was returning to rector at Los Angeles-based to the International Monetary has one of the highest reserve- other infrastructure projects.
trols on money flowing out, it normalcy. fund manager TCW Group. We Fund that it would promote free requirement ratios in the world, PBOC officials including Gov.
has dialed back years of efforts China isnt seeking to stop dont want China to be our Ho- capital flow in exchange for ac- economists say, even though Zhou Xiaochuan have publicly
to make it easier for the Chi- the yuans fall altogether, but to tel California, where you can ceptance of the yuan into the many businesses are starved of sought to play down its recent
nese to invest overseas and guide it lower in an orderly check out but never leave. worlds elite club of currencies. credittraditionally a signal for tightening, saying increases in
more attractive for foreigners fashion. Too sharp a drop could Scaring foreign investors off Whats more, the capital a central bank to use monetary short-term rates can prod com-
to invest in China. drive up inflation by increasing could deny the Chinese economy rules are disrupting the short- policy and inject money. panies to cut back on borrow-
And the bank has essentially import costs and cause uncon- an important source of capital. lived calm China had managed ing. In a March 30 paper, the
to inject in its jittery property PBOC nodded to the trilemma
markets. Unable to take money Credit pinch but argued that it has found a
The Yuans the exchange rate to become a
trouble spot, with the U.S. as
jing on North Korea.
At a news briefing Thurs-
out of the country, many inves-
tors cant think of anywhere
The first inklings of new
monetary-policy constraints
way to balance its mandates
through more-targeted man-
Trump Factor well as in China, says an offi- day, a Chinese foreign-ministry else to put it. Home-sales values came ahead of last years Lunar agement of capital flows.
cial who attended President Xi spokesman said: Its true that jumped by 26% in the first two New Year holiday. That is a typ- Still, to defend the yuan,
Jinpings annual economic- China hasnt been a currency months of 2017 from a year ear- ical time for a triple-R cuta the overall cost goes up as U.S.
Chinas motivations for strategy meeting. manipulatorthats an objective lier, despite a series of moves to cut in banks required re- interest rates go up, says Gene
keeping the yuan from tanking President Trumps pro- fact. cool down last years frenzy. servesto avoid a cash crunch Frieda, global strategist at Pa-
go beyond its borderstheres nouncements Wednesday take Government officials and Stocks are too risky, bonds when employers pay year-end cific Investment Management
also the Trump factor. some pressure off Beijing. The economists in Beijing on Thurs- are not for retail investors like wages. Instead, the PBOC opted Co. The strategy is ultimately
As a candidate, Donald U.S. Treasury Department this day said they expect Washing- me, and you cant invest over- to provide more-costly funds. about buying time, but its a
Trump accused China of be- week is expected to issue its ton to continue putting China seas now, says Qian Yu, a 42- One argument for that ap- bridge to nowhere unless the
coming the worlds leading ex- semiannual report on the cur- on notice about currency man- year-old advertising executive proach was avoiding a signal authorities successfully deal
porterand destroyer of Ameri- rency practices of Americas agement and trade practices. in Beijing who was looking to the PBOC was loosening credit, with the debt problem and un-
can jobsby exploiting an major trading partners. Mr. Official data released Thursday buy his third property last which could weaken the yuan. dertake reforms that allow for
artificially weak yuan. Beijing Trump in a Wall Street Journal showed Chinas trade surplus month. There is just not much We need to put a high empha- healthier growth.
hopes its yuan defense will re- interview said the report wont was $23.93 billion in March, else to buy. sis on maintaining the ex- Economists and investors
duce the chance of a trade war call China a currency manipula- compared with a rare deficit of The PBOC is also refraining change-rate stability when warn that because of the effect
that could hurt exports and tor, saying China has stopped $9.15 billion in the previous from using traditional mone- managing liquidity, said one of higher interest rates on com-
sour relations with the U.S., manipulating the yuan and month, and 74% of the latest tary-policy tools such as one it central-bank official in a meet- panies with massive debt, Bei-
Chinese officials say. that it was more important to surplus was with the U.S. usually employed when the ing with banking executives in jing may eventually have to
The higher-ups dont want focus on cooperation with Bei- Lingling Wei economy needed a push: cutting January 2016, according to give up currency control and
the amounts banks are required minutes of the meeting. let interest rates fall.

DOLL bodys boss, neighbor or


friend, agency spokesman Olaf
Peter Eul said.
Other connected toys, such
Germany GmbH, said it took the
complaint very seriously but in-
sisted Cayla didnt break the
law and said it would challenge
deal with these days.
She said her daughter, who
found Cayla stupid and ugly,
parted with the bugged doll
LEON NEAL/AGENCE FRANCE-PRESSE/GETTY IMAGES

Continued from Page One as Mattel Inc.s Hello Barbie the agencys decision. Vivid de- without a tear. Still, Ms. Har-
unsurpassed zeal. or CogniToys Dino, escaped clined to say how many dolls mann was hesitant to destroy it
In recent campaigns, the the agencys wrath because they had been sold in Germany or and donated it instead to the
Network Agency sniffed out and didnt operate in disguise and whether some had been re- German Spy Museum Berlin,
neutralized data-gathering de- their communication features turned. There is no reason to which had launched an appeal
vices lurking in smoke detectors were better protected against destroy Cayla or give the doll for unwanted Caylas.
and credit cards. Now it is tak- outside intrusions by showing away, the company said in a I told the museum it would
ing the fight to a new breed of clearly when the microphone statement. It isnt a spying de- actually be much nicer for Cayla
all-seeing, all-hearing internet- was on, consumer protection vice. to have a purpose and warn
connected toysstuffed pandas, and legal experts said. The producer of Cayla, other parents instead of simply
remote-controlled cars, robots Internet-enabled toys, which China-based Genesis Toys, destroy it with a hammer, she
and dollsthat are invading can record children via micro- didnt respond to requests for said. We now have a little ce-
German childrens bedrooms. phones and cameras and make comment. lebrity in the museum.
And it isnt kidding. The talking doll My Friend Cayla has been banned in Germany. those recordings remotely avail- The doll cant connect di- The museums Florian Schi-
Parents who ignore the order able, have raised concern from rectly to the internet but can be mikowski said Cayla became the
to destroy Cayla could face a tarily render this doll harm- camera hidden in its nose that privacy activists elsewhere. accessed via Bluetooth by any first toy in its collection, which
fine of up to 25,000, about less, it said in a statement. operated as a nanny cam or But while Norway, the U.K. mobile device loaded with the houses a specimen of Enigma,
$26,500, and two years in The Bonn-based agency is a baby phone and could connect and the U.S. have warned about My Friend Cayla app. This ac- the notorious Nazi encryption
prison under paragraph 90 of child of the 1990s, when the to a mobile phonethe panda Caylas nefarious potential, Ger- cess isnt protected and any machine, and the Fotosnaiper,
Germanys telecommunications state began selling off its for- cant be named for privacy rea- many is alone in making the conversation a child might have a gun-shaped spy camera used
law. On its website, the agency mer monopolies and opening sons, according to the doll illegal and ordering its de- with Caylaor in her pres- to take long-distance photo-
posted a template for a destruc- their markets to competition. Bundesnetzagentur. struction. encecould be eavesdropped graphs.
tion certificate that should be Its main, and more mundane, A toy robot was sent to the Its pretty bad bringing a upon by a concerned parent, cu- It sounds a bit like an over-
filled in, signed by a waste- task is to oversee the telecom- scrapyard because its head was doll on the market anybody in a rious neighbor or malicious out- reaction to call on parents to
management company, and sent munications and postal markets embedded with an internet-en- 30-feet radius can connect to, sider, the agency said. destroy the doll, said Mr. Schi-
to the agency as proof of de- and ensure network access for abled camera concealed behind said Stefan Hessel, a law stu- We thought it simply in- mikowski.
struction. energy suppliers and rail opera- a black visor. A tank replica dent at Saarbrcken University credible that we could own such But Abby-Sue Mook, a 17-
The agency said it had no tors. But it takes its counteres- shared the same fate owing to who penned the legal opinion an awful thing sitting in our year-old Austrian visitor wan-
plans to take action against pionage role no less seriously. another hidden camera and be- used by the agency to ban the childs bedroom for two years dering around the museum, dis-
noncomplying adults. Before turning its sights on cause it was actively promoted doll. A regular Bluetooth loud- without our knowledge, said agreed: She can spy on
The Bundesnetzagentur as- Cayla, the agency last year as a vehicle that could spy se- speaker is better protected. Ms. Harmann. Its simply unbe- households. I think its good
sumes that parents will volun- banned a panda bear with a cretly, for instance, on some- Caylas distributor, Vivid lievable what parents have to that she had to be destroyed.
A9A | Friday, April 14, 2017 NY * * THE WALL STREET JOURNAL.

GREATER NEW YORK


Malloy Wont Run for Third Term
BY JOSEPH DE AVILA our democracy is that no gover- The Republican Governors Earlier this week, a nation- nation, which crossed that
nor, no mayor, or no president Association said in a statement wide survey by media and mark in May 2014.
Connecticut Gov. Dannel for that matter, ever sees their that Connecticut now is a top technology company Morning Following the 2012 shooting
Malloy said Thursday that he vision fully realized, he said at pickup opportunity for Republi- Consult pegged Mr. Malloy as at Sandy Hook Elementary in
wouldnt seek a third term, es- a news conference in Hartford. cans. the countrys least popular Newtown that claimed the
tablishing an endpoint to his After losing the Democratic But state Republicans, fre- Democratic governor, with a lives of 26 children and adults
leadership of a state struggling nomination for governor in quent adversaries of Mr. Malloy, job-approval rating of 29%. Mr. Malloy rallied lawmakers
with a gaping budget gap and a 2006, Mr. Malloy, a former also offered some words of The survey was based on to pass new firearms restric-
stagnant economy. prosecutor and mayor of Stam- praise. While we may not al- weekly online polls of more tions.
Initially sworn in as gover- ford, won the office in 2010 by ways see eye to eye, I respect than 85,000 registered voters The governors leadership
nor in 2011, the 61-year-old defeating Republican business- him greatly for his tireless work between January and March. in the aftermath of the New-
SUSAN HAIGH/ASSOCIATED PRESS

Democrat said he would serve man Tom Foley by a few thou- ethic and dedication to Con- In contrast to neighboring town tragedyone of the
the remaining two years of his sand votes. necticut, said Senate Republi- states of New Jersey and New darkest days and periods in
second term. He said he would He was re-elected in 2014 in can President Pro Tempore Len York, Connecticuts recovery our nations historywill be
continue to push for a more eq- a rematch with Mr. Foley. Fasano. from the recession has been long remembered for the
uitable system for education Mr. Malloys announcement Mr. Malloys stewardship of choppy. strength and comfort he
funding, better budget practices to step down gives potential the states finances and eco- The state added zero jobs in brought to the afflicted fami-
and changes in the criminal-jus- Democratic candidates ample nomic performance has dragged 2016, and overall employment lies and to the entire state,
tice system. time to gather support for the down his approval numbers hasnt returned to prereces- said Senate President Pro
Gov. Dannel Malloy on Thursday. Inherent in the nature of 2018 election. since his first year in office. sion levels, lagging behind the Tempore Martin Looney.

Police Investigate
Judges Death
As Likely Suicide
Police are investigating the day. Her husband reported her
death of a New York judge missing on Wednesday.
whose body was pulled from Police responded to a 911
the Hudson River as a likely call Wednesday afternoon and
suicide, confounding colleagues, found Judge Abdus-Salaams
friends and neighbors in her body in the river. An autopsy
close-knit Harlem community. showed no apparent injuries
Sheila Abdus-Salaam, the and authorities dont believe
she had been in the water a
By Zolan Kanno- long time, Chief Boyce said.
Youngs, Judge Abdus-Salaams
Corinne Ramey friends and neighbors were
and Kate King shocked by reports that she
might have taken her own life.
first African-American woman They recalled her as a generous
on the New York Court of Ap- friend who was deeply involved

MIKE GROLL/ASSOCIATED PRESS


peals, had no visible signs of in her Harlem community.
trauma or foul play when her Eric Thomas, a longtime
body was found in the river friend, said he last spoke with
near West 132nd Street on Judge Abdus-Salaam in late
Wednesday afternoon. Police March. She was telling me
are 90% sure Judge Abdus- about retiring in maybe four
Salaam committed suicide, of- years, he said. She was talking
ficials said, but are still exam- about the future.
ining surveillance videos to Neighbors on West 131st Harlem resident Sheila Abdus-Salaam was named the first African-American woman on the New York Court of Appeals in 2013.
see if there was any sign her Street, where she had owned a
death was accidental. brownstone since the 1980s, children. She was born in
Her husband, Rev. Gregory said Judge Abdus-Salaam was Washington, D.C., in 1952. She Judges Judge at Albany Law School. ing from law school, never for-
A. Jacobs of the Episcopal Dio- well-known, humble and re- was inspired to pursue law He called her August opin- got about the less fortunate,
cese of Newark, said, Im re- served. It is a block where when Frankie Muse Freeman, Was Civil-Rights ion, which established the right said those who knew her.
gentrification hasnt eroded a famed civil-rights attorney, Champion for non-biological parents to She always extended real
the sense of community, said came to her high school to seek custody of a child, a land- courtesy to advocates, recalled
Earl Davis, who lives on the speak. She graduated from mark one. Previously, the state Seymour James Jr., attorney-in-
Sheila Abdus-Salaams street and founded Project Barnard College in 1974 and New York Appeals Court had recognized parents with bi- chief of Legal Aid Society, an-
brother committed Brownstone, a small nonprofit Columbia Law School in 1977. Judge Sheila Abdus-Salaam ological or adoptive rights, other public-defender group.
for which Judge Abdus-Salaam Valerie DeBerry, who lived was known for her gracefully which legally blocked some Her work with the poor in
suicide around Easter served as a board member. with Judge Abdus-Salaam at written opinions, respect for the same-sex couples in custody Brooklyn helped shape the rest
three years ago. Project Brownstones mis- Barnard College, said she law and passion for civil rights. disputes. of her judicial career, he said.
sion is to empower local youth knew her true north and she She was a judges judge, Michael Cardozo, New York She didnt forget them, he
through arts and education, never wavered from it, even as said former Chief Judge Jona- Citys former corporation coun- added.
and Mr. Davis said Judge Ab- a young woman. than Lippman, who served with sel, called Judge Abdus-Salaam Mr. Bonventre, the profes-
ally having a difficult time pro- dus-Salaam served as a men- Gillian Lester, the dean of her on the states highest court the perfect judge to argue in sor, said that when Ms. Abdus-
cessing all of what happened. tor to young people pursuing Columbia Law School, wrote in and was chief judge when she front of. She would call them Salaam came to speak to his
The couple married last June. criminal-justice careers. a letter Thursday that Judge was appointed in 2013. Every- as she saw them, right down students, she would acknowl-
Judge Abdus-Salaams Pat Miller, another neighbor Abdus-Salaam was active on one had respect for her. the middle, he said. She would edge that cases could be diffi-
brother committed suicide and member of the 131st campus. Judge Abdus-Salaam was look at what the law was and cult.
around Easter three years ago, Street block association, said At her June 2013 swearing- thoughtful and adhered to the apply it. A bonus: She would She would say, Were deal-
a law-enforcement official said. he once asked Judge Abdus- in, Judge Abdus-Salaam said law, and cared deeply about always give him a hug, he ing with a case right now, and
Judge Abdus-Salaam, who Salaam if she could use her she was still processing her people, he said. On the Court of added. Im the vote, Mr. Bonventre
was 65 years old, spent the professional connections to improbable good fortune of Appeals, the 65-year-old was a Throughout her career, said. She was not reluctant to
weekend with her husband in help clean up a vacant house being the courts first African- little on the liberal side of the Judge Abdus-Salaam, who say it was a difficult case and
New Jersey and spoke with on their block. He said she re- American woman. Only God court and passionate about civil worked at public-defender or- she still was not sure how she
one of her assistants on Tues- fused, saying, That would be and her mother, the judge rights and equal treatment, said ganization East Brooklyn Legal was going to vote.
day morning, Chief of Detec- an abuse of my power. said, may have had an inkling Vincent Bonventre, a professor Services shortly after graduat- Corinne Ramey
tives Robert Boyce said Thurs- Judge Abdus-Salaam had no this would be my fate.

New Gang Fears After Four Killings


BY JOSEPH DE AVILA
AND ZOLAN KANNO-YOUNGS

The bodies of four men


were found in a Central Islip
park on Long Island, in killings
SETH WENIG/ASSOCIATED PRESS

that matched a pattern used


by the gang MS-13, Suffolk
County Police said Thursday.
The victims were killed
with sharp-edged instruments
and had significant trauma
throughout their bodies, said
Suffolk County Police Commis-
sioner Timothy Sini. The bod- Emergency workers near the murder scene in Central Islip, N.Y.
ies were discovered Wednes-
day evening. nous acts will not go unpun- were targeted after a feud
Police said MS-13 is respon- ished and our communities with MS-13 members at school
sible for six murders in the will not be intimidated by and on social media. Police
neighboring community of such cowardly violence. said the alleged gang members
Brentwood last year. Investi- Central Islip is a blue-collar beat the girls with a bat and
gators also arent ruling out suburb in the middle of Long attacked them with a machete.
other suspects. Island. Adjacent Brentwood Authorities also alleged
To the extent this is has been the epicenter in a they stabbed and beat to
MS-13, this a reminder of how surge of gang violence tied to death fellow gang member
violent they are, Mr. Sini MS-13, which has ties in Cen- Jose Pena, also a Brentwood
said. tral America, according to Suf- High School student, in June.
He said the Central Islip ho- folk County Police. Suffolk County Police have
micides occurred recently, but More than a dozen alleged worked with the Federal Bu-
declined to say on what spe- MS-13 members were charged reau of Investigation and Nas-
cific day. The bodies of the in March in connection with sau County Police to crack
victims werent skeletal re- three of the six killings in down on MS-13 following the
mains. Two of the victims 2016. Federal prosecutors ac- slayings of Ms. Cuevas and
were 18 years old, one was 20 cused the suspects of killing Ms. Mickens. Police say more
and the other was 16. Brentwood High School stu- than 135 gang members have
I am outraged to learn of dents Kayla Cuevas, 16, and been arrested since then.
the homicides in Central Islip, her friend Nisa Mickens, 15, in This is a long-term war,
said Suffolk County Executive September. Mr. Sini said. Make no mis-
Steven Bellone. These hei- Authorities said the girls take about it, its a war.
THE WALL STREET JOURNAL. * * * * NY Friday, April 14, 2017 | A9B

GREATER NEW YORK WATCH

Pricey Bourbon Makes a Splash in the City


GUBERNATORIAL ELECTION
Candidates Receive
$3.6 Million in Funds
One establishment pairs the buzzy Van Winkle with dinner for $500, another charges over $100 a shot New Jersey taxpayers have
BY CHARLES PASSY Its a status symbol, said provided $3.6 million in public
Ric Addison, chief executive matching funds to Democratic
YORK has no short-

N
EW of Monarch parent company and Republican candidates in this
age of bars that sell Addison Hospitality Group, of years contest to succeed Repub-
specialty cocktails for the drink. lican Gov. Chris Christie, state
$15 or more. But one estab- Its unclear how many bot- election officials said Thursday.
lishment is going a step be- tles of the Van Winkle line Democrat Jim Johnson, a for-
yond and offering a whiskey make their way into the New mer official in President Bill Clin-
dinner Wednesday for $500 a York market. Buffalo Trace tons administration, and Repub-
head. Distillery and Empire Mer- lican Lt. Gov. Kim Guadagno

ANDREW LAMBERSON FOR THE WALL STREET JOURNAL


The event at Midtowns chants, which distributes the have received the most money,
Bryant Park Grill will feature Van Winkle line in the city, at nearly $1.2 million each.
pourings of Van Winkle, the wouldnt provide hard num- Democratic Assemblyman
cult-favorite bourbon line bers. But John Devin, presi- John Wisniewski received about
that is pro- dent of Empire, said there $663,000 and Republican As-
FOOD & duced in limited are thousands of customers semblyman Jack Ciattarelli got a
DRINK quantities by looking to get their hands on roughly $651,000 disbursement,
Kentuckys Buf- hundreds of bottles. his first of the campaign.
falo Trace Dis- Some establishments that The funding program, dating
tillery in partnership with are fortunate enough to pro- to 1974, allows candidates to
the Van Winkle family. The cure a bottle make a point of get $2 in public cash for every
list price of the most exclu- keeping prices in check. $1 raised. Candidates must raise
sive Van Winkle offerings, Neta, a Japanese restau- $430,000 to qualify.
such as the 23-year-old Tony King at the Plaza Hotels Palm Court pours a $120 cocktail that includes Van Winkle bourbon. rant in Greenwich Village Associated Press
Pappy Van Winkle, can run that offers a selection of
$270 a bottle. Some retailers, some bucks, he said. ment that is making the most often sells out fast. whiskeys, charges $29 for a NEW JERSEY
however, mark up the price Mr. Isaacsons hunch may of its Van Winkle procure- Other establishments go shot of the 23-year-old
to as high as $3,000 a bottle. be right. As of earlier this ment and charging a sizable beyond just shots and use Pappy, albeit with the re- House Fire Claims
The idea behind the Bry- week, the restaurant had sum to partake of the spirit. their Van Winkle bourbon in striction of one pour per per- Elderly Couple
ant Park event, said Jeff sold all but four of the 20 Some bars, such as Em- mixed drinks. At the Plaza son.
Isaacson, who directs bar- slots for the dinner. Still, Mr. ployees Only in Greenwich Hotels Palm Court, bartend- Thomas Kim, who runs the An elderly couple died and
and-beverage operations for Isaacson said he considered Village, are serving it by the ers make a Pappy Manhattan, restaurants bar program, their caretaker was critically in-
parent company Ark Restau- the event a great value, shot for prices that can top replete with a flamed orange said he doesnt want the cost jured in a house fire early Thurs-
rants, is to have a little fun noting that the pricey whis- $100 for the most limited- peel, for $120. of Pappy to be an obstacle day morning in Berkeley Heights,
in connection with the end of key will be paired with a edition versions. Its like a At Midtowns Monarch for the uninitiated. Im a police said.
tax-filing season. I figured four-course meal. hot car on the lot, said prin- Rooftop & Indoor Lounge, whiskey lover so I want Firefighters pulled the three out
people are saying, Im get- Bryant Park Grill is hardly cipal bartender Steve Schnei- they offer a Grandaddy Pap other whiskey lovers to try of the home and performed CPR
ting a refund, so lets blow the only New York establish- der, noting that the bourbon cocktail for $99. it, he said. before transporting them to a hos-
pital. Erwin and Mary Gloss, both
95 years old, were pronounced

Students Reboot Tech Camp dead there a short time later. The
48-year-old woman who cared for
them had undisclosed injuries.
Associated Press
LESLIE BRODY/THE WALL STREET JOURNAL

BY LESLIE BRODY who cant afford the $1,350 fee cars made from old computer
for four weeks. parts.
Three students on Stuyve- They say they take no sala- They say many science and CORRECTIONS 
AMPLIFICATIONS
sant High Schools robotics ries and use the tuition to pay technology programs are too
team couldnt believe the poor for materials, laptops, rent at exclusive, expensive and bor-
coding skills of many ninth- the Beam Center in Red Hook, ing, and they want to get more
graders who wanted to join Brooklyn, and staff. young people interested in the
their team. Some teenage teachers at- field they love. They laugh off Judge Sheila Abdus-Sa-
So the trio started their tend Stuyvesant, one of the the notion that polishing a laams husband reported her
own company, Kinet-X, to elite public high schools ad- college resume could be part missing to the New York Police
teach computer science and mitting students through a of the motivation. Department on Wednesday. A
engineering to middle school- tough admissions exam. There are way easier things From left: Adam Abbas, Chauncey Lau and Allan Wang, who Thursday article about the
ers. Last summer, their tech- The company founders, ju- to do than this to get into col- attend New Yorks Stuyvesant High School, run a tech camp. judges death incorrectly said
nology camp drew about 15 niors Allan Wang, Adam Abbas lege, said Mr. Abbas. I want that her husband reported her
students and $20,000 in reve- and Chauncey Lau, are plan- to see kids eyes light up when fast-changing world, children students understand the big missing on Tuesday.
nue. ning this summers curriculum. they write their first code and need to be exposed to com- picture and take ownership of
This summer, they plan to It includes lots of hands-on everything is working. puter science and engineering it, he said. Our kids are very Readers can alert The Wall Street
expand camp enrollment and projects such as building web Eric Contreras, principal of as early as possible. Its ex- enterprising. They do things Journal to any errors in news articles
by emailing wsjcontact@wsj.com or
slash the price for families pages and solar-powered toy Stuyvesant, said that in such a citing and inspirational to see and I find out later. by calling 888-410-2667.

2016 Idea Contest Winner, Marc Grow

Sohn Investment calendar giveaway


SATURDAY, APRIL 15 AT 1:05 P.M.
Idea Contest ALL GUESTS IN ATTENDANCE
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detector and physical pat-down inspections prior to entry. Any item or property that could affect the
#Sohn2017 safety of Yankee Stadium, its occupants or its property shall not be permitted into the Stadium. Any
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A10 | Friday, April 14, 2017 THE WALL STREET JOURNAL.

LIFE&ARTS
TELEVISION REVIEW
The Fate of the Furious
The Women cast includes Vin Diesel,
Charlize Theron
(middle) and Dwayne

Behind Johnson (bottom).

The Throne

Essie Davis and Michelle Fairley

FILM REVIEW | Joe Morgenstern


BY JOHN ANDERSON

UNEASY LIES the head that wears the


crown in 1480s England, and its small
wonder why. His in-laws hate him. Half
the country wants him dead. Heirs, ap-
parently, are lurking behind the mani-
Furious: Nothing
cured shrubbery. Add to all this what
seems like divine judgment regarding his
sketchy claim to the throne: A plague
the mysterious, fatal English sweatis
decimating his population. Peasants are
dropping like underprivileged flies.
Good Under the Hood
Yet for all his existential crises, King
Henry VII (Jacob Collins-Levy) is neither DISSING THE FATE of the Furi- the erstwhile hero against his wife
the heart nor the soul of The White ous is like criticizing the tide. and his team, against everyone he
Princess, a STARZ adaptation of Philippa (High as it may have been in its loves. (How Cipher does this is the
Gregorys 2013 novel, a woman-centric latest iteration, the tide failed to point the plot withholds; the
account of medieval British history with lift my boat, and, not incidentally, movie would make more sense if it
several of Ms. Gregorys delicious seemed oversalted.) This eighth blew its big secret early on.)
tweaksand a comely yet formidable iteration of the series that began Sense, or narrative logic, is not
heroine in Princess Elizabeth (Jodie with The Fast and the Furious in what turns out vast audiences for
Comer). The white of the title refers 2001 will earn zillions of dollars this series. Its the cars, of
not to her alabaster complexion, or her during the first nanoseconds of its coursemy favorite was a brown-
soul, but to her allegiance in the recently global opening this weekend, so and-cream Bentley that comes to
concluded Wars of the Roses: The House who am I to call it soulless, grace- a bad end in a good causeand
of Lancaster (of the red) has defeated the less, witless, incoherenteven for the men and women who drive
House of York (the white), and seized the the franchiseand, not inciden- them. (F8 is the first film of
kingdom of the recently dispatched Rich- tally, brain-numbingly long at 136 the series since The Fast and the
ard IIIElizabeths uncle and, apparently, minutes? But Ive said it and Furious: Tokyo Drift, in 2006, to
her lover. Henry, a Tudor and Lancaster theres no turning back, or driving be shot without Paul Walker, who
descendant, has vowed to wed Lizzie in reverse, as Vin Diesels Dominic died in 2013 in a single-car acci-
and unite the kingdom; her lack of vir- Toretto does to win a street race dent while the previous episode
ginity appalls him as much as her poli- in Havana. (His engine is on fire, was still in production; a touch-
tics. To call it a mixed marriage does not so he gets a supposedly crucial ing tribute to him surfaces to-
begin to explain it. thermal boost by putting the ward the end.)
And why bother? The very popular flames behind him.) This time around the track,
Ms. Gregory may claim to be delivering Instead of recounting the plot, though, logic seems to have been
history lessons, but straying from the which needlessly conceals an es- treated as a potential contaminant
factual record makes for far more amus- sential point for much of the in a pounding succession of action
ing drama. Conversely, one of the in- movie, let me start with the villain sequences. The first, that race in
triguing features of The White Princess of F8, or the villainess. Shes a Havana, gives a few tantalizing
is the naturalistic earthiness of its char- cybergenius named Ciphersome- glimpses of present-day Cuba, but
acters lives. Dramas set in medieval Eng- one says shes like a digital act of then its over. A cryptic mission to
land usually pretend that people had God, whatever that meansand Berlin might just as well have
dentists, showers, hygiene and a sense of she is played by Charlize Theron, been shot in Hoboken for all the
social decorum. Thats not quite the case which should mean shes the best vistas it provides. A prison break
here. In The White Princess, the teeth character in the show, even is both brutal and boring, no
are OK but the people are grimy, and though Jason Stathams Deckard small trick. A terrific comic no-
theres even a royal rape, perpetrated by Shaw and Dwayne Johnsons Luke tion involving autonomous cars is
a frustrated Henry on an indignant Eliza- Hobbs are also on hand to match weakened by repetition (and mul-
beth. I barely even noticed she says, a muscles and trade increasingly tiplication). The closest thing to
stinging parry to his thrust. tiresome insults, and Helen Mirren puts in a written role. Flying above an assortment of useful craziness comes in the climax, which
In addition to taking the chattels fleeting appearance as Shaws mother. (The frays in her ultra high-tech command plane, is set in a whited-out arctic waste where
point of view in a world lopsidedly director was F. Gary Gray, working from a Cipher is bent on world domination (only, cars, Hobbss monster truck and an old Rus-
male, The White Princess is a tapestry script by Chris Morgan.) she insists, to keep the superpowers from sian nuclear submarine that Cipher has
of soap and backstage politics, with But no, not even Ms. Theron, a lissome, stepping out of line); talks menacingly of ac- hacked converge in deafening, deep-freeze
some really marvelous performances. powerful and witty pillar of the performing quiring Russias nuclear codes (thats where combat. One could liken the sequence to the
Ms. Comer, who is present even when artsshe was all of that in the recent Mad the fun doesnt come in); and forces poor, battle on the ice in Eisensteins Alexander
STARZ

Please see TELEVISION page A11 Maxcan find much fun in the coarsely forlorn Dom to do her bidding, thus turning Nevsky, but Im not that One.
UNIVERSAL STUDIOS (3)

THEATER REVIEW

GETTING THEM
IN THE ROOM
ceived its premiere last summer in
BY EDWARD ROTHSTEIN
Lincoln Centers smaller Mitzi E.
Newhouse Theater and the produc-
New York tion was slightly modified for its
I DO NOT KNOW whether during new Broadway run. The authors
the secret back-channel meetings research was considerable (he pre-
between various Israelis and rep- viously took on the Rwandan geno-
resentatives of the Palestine Lib- cide in The Overwhelming and
eration Organization in Oslo in 1980s Afghanistan battles in
1993 one of the negotiators really Blood and Gifts). And the true-
imitated Henry Kissinger, or if to-life aspect of Oslo is startling.
cardamom waffles played a paci- Much of it takes place in a castle
fying role when things got tense. outside Oslo (abstractly suggested
T CHARLES ERICKSON

But one of the achievements of by Michael Yeargans spare sets)


J.T. Rogerss Oslo is that these where a Norwegian sociologist,
details seemed perfectly plausible. Terje Rd-Larsenplayed by Jef-
The play is generally so smartly ferson Mays as a polished but ob-
written, the characters and their sessed ironistis eager to apply
realization so vivid, and the direc- theories of negotiation to the con- Henny Russel (center) with Daniel Jenkins, Dariush Kashani, Jefferson Mays, Daniel Oreskes and Anthony Azizi
tion of Bartlett Sher so taut that flicts of the Middle East. Together
you are drawn into a three-hour with his wife, Mona Juul, an offi- this resulted in the Oslo Accord, ally does work. The drama gains shoes, and I only brought one
drama about something intrinsi- cial in the Norwegian Foreign marked by a historic handshake on momentum when Michael Aronov pair.) And as Ahmed Qurie, the
cally undramatic, in which nuance Ministryplayed by Jennifer Ehle the White House lawn between Yit- swaggers in as Uri Savir, director- PLO finance minister, Anthony
and minutiae are generally more as a stern but gracious overseer zhak Rabin, Israels prime minister, general of the Israeli foreign Azizi meets Mr. Aronov more than
crucial than action: negotiations. who fills the audience in on de- and Yasser Arafat, the PLOs head, ministryan insufferably arro- halfway, with a well-fertilized mix
It also helps quite a bit if you ac- tailsthey secretly assemble their soon to lead the newly formed Pal- gant tough guy with a gift for the- of outrage and sentimentality. The
cept the plays premises, which I subjects (neither side wanted to be estinian Authority. atrical gesture. (Weve both got castnotably Adam Dannheisser,
think most people will. publicly seen meeting the other) In advance, this seemed to me a to be flexible here, he tells his Daniel Oreskes, Dariush Kashani,
I do not. But before explaining and set the wheels in motion. The recipe for disasterand I mean PLO counterpart. Otherwise we Daniel Jenkins, Joseph Siravo and
why, I should note that the play re- surprise is that in September 1993 (at least here) the play. But it re- are just pissing on each others Please see THEATER page A11
THE WALL STREET JOURNAL. Friday, April 14, 2017 | A11

LIFE & ARTS


FILM REVIEW

Joe Morgenstern

Making the
Grade SUNDANCE SELECTS

Maria-Victoria Dragus and Adrian Titieni

THE PHOTOGRAPHER Henri Cartier-


Bresson famously spoke of capturing the
decisive moment in his subjects lives.

T CHARLES ERICKSON
Watching Graduation, a quietly transfix-
ing drama by the Romanian filmmaker
Cristian Mungiu, its tempting to look for
such a moment in the life of Romeo Aldea,
a surgeon living with his teenage daughter
and almost-estranged wife in a town in
Transylvania. At what point does Romeo
decide to violate his principles, the ones Jefferson Mays and Jennifer Ehle
he has taught his daughter, by obtaining
improper influence that will guarantee her

THEATER
success on a crucial exam? If the moment nam peace talks led to a completely worth- staged plan for dismantling Israel. And in
exists I couldnt pin it down. What I saw, less agreement. And remember Munich? the 21/2 years after the signing, 210 Israelis
instead, was a moral and ethical version It depends on who is negotiating and were murdered in terror attacksthree
of a whats-wrong-with-this picture? why. What we dont learn from the play, for times the average toll of the previous 26
game. Wherever the camera turns, whom- Continued from page A10 example, is that Israeli leaders had already years. Before his 2001 death, Mr. Husseini
ever Romeo encounters (with a few nota- T. Ryder Smithis similarly accomplished. had confidential meetings with a PLO-con- boasted of the Oslo accord as a Palestinian
ble exceptions), wrongness emerges in the Since Mr. Rogers pulled off this success, nected figure, Faisal Husseini, before the Trojan Horse.
form of casual venality. A caring father, a it also seemed more plausible that the his- Norwegians took on this project and the So if Oslo means us to recognize how
good doctor and, by reputation, an honest torical characters thought they could too. talks led nowhere for multiple reasons. important negotiations and close human
man, Romeo has long been a comfortable, We are reminded of the plays historical Oslo may have succeeded partly because contact are, I found myself agreeing but
if unconscious, fit in a corrupt society. claims again and again, both by actors im- it was so flawed: Israel had no security noting that they can also seduce and distort
Mr. Mungiu, is a master of ramifica- personating Israeli politicians (Yossi Beilin, representative involved; the Palestinians and that the arrogance of believing that you
tion; his films start off as plain tales, then Shimon Peres) and by the cast interjecting had no legal representative. And the PLO, can venture out on your own and gamble
deepen into complex psychology and reminders of terrorist attacks and retalia- which had become impoverished and side- with the lives of others is something not
spread out into contemporary culture. In tions during the negotiations and, at plays lined, was being brought back into power. particularly deserving of praise.
4 Months, 3 Weeks and 2 Days (2007), end, into the present. We are meant, ulti- The plays epilogue acknowledges that Aside from that though, the play fascinates.
a young woman desperately searches for mately, to side with Mr. Rd-Larsen, who troubles did not end, but mentions just two
an illegal abortion in late 1980s Romania, declares that, despite it all, what was terrorist attacks in the two years after the Oslo
but the cultural context was the pervasive achieved should give us hope. The play is a signingboth by Jews, one being the as- Lincoln Center Theater, Vivian Beaumont
evil of the Ceausescu dictatorship. plea for the value of negotiations. sassination of Rabin in November 1995. But Theater, 150 West 65th St. ($87-$147),
In Graduation, which stars Adrian Ti- The truth is, it depends. Most recently, that is a distortion. In May 1994, Arafat 212-239-6200
tieni as the doctor, the presenting prob- negotiations removing chemical weapons called for a jihad to liberate Jerusalem
lem is the plight of Romeos daughter, from Syria proved to be a sham. The Viet- and referred to the agreement as part of a Mr. Rothstein is the Journals Critic at Large.
Eliza (Maria-Victoria Dragus). In normal
circumstances this bright and studious
high-school senior would ace her exam,
get the scholarship she seeks and go off to
study psychology in Cambridge.
Suddenly, however, her success is not
assured, and her father realizes he can
TELEVISION eyn Girl, which was both a BBC
program and a theatrical film, and
The White Queen, which was an
help her. Thats when the film widens into Emmy-nominated miniseries), Ms.
individual portraits: of a local fixer; of a Continued from page A10 Gregory, with the aid of screen-
crooked police inspector, Romeos friend absent, makes Lizzie a proud, writer Emma Frost, champions her
(played by Vlad Ivanov, the vile abortion- forthright beauty with a social central female subject, surrounds
ist in 4 Months, 3 Weeks and 2 Days); conscience, which certainly distin- her with catty subordinates, and
and above all, of a father losing control of guishes her from her mother, the goes with whatever historical inter-
his daughter and his own life. scheming dowager Queen Elizabeth pretation provides the most sensa-
Mr. Titieni doesnt tug at your heart- (Essie Davis) or her new mother- tional story. Here, that includes the
stringsthe film is too austere for that, in-law, Margaret Beaufort, to use of English voodoo, the powers
and Romeo is an unprepossessing hero at whom the marvelous Michelle Fair- of the mandrake root, the sibling ri-
best, living a life of lies with a good wife ley brings a combination of mis- valry between Lizzie and her craven
he doesnt love and a loving mistress he placed righteousness, religious de- sister, Cecily (Suki Waterhouse), and
wont marry. What we see in him is af- votion and Oedipal mania/ Lizzies thoughts of Richard III,
fecting all the same: a father who fears ambition. Shes a scary character, At right, Jacob Collins-Levy and Jodie Comer whos seldom been remembered
losing his daughter to a bright future, yet and conspicuously absent from quite this fondly.
wants her to succeed at whatever cost. Shakespeares plays on the period. But, ins war, Margaret tells Lizzie, even as those
We raised you to be honest, he tells her, then, Shakespeare was a Tudor propagan- Plantagenet cousins plot against each other,
but this is the world we live in. This dist, and Ms. Gregory is definitely not. and Margaret schemes against Lizzie. As in The White Princess
STARZ

physician cant heal himself. You will be the peace that ends the cous- her other works (including The Other Bol- Begins Sunday, 8 p.m., STARZ

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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COLLEGE SEARCH | By Matt Gaffney 9 Comfy shawl 52 Opponent in
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Minneapolis 64 58 r 68 47 r Brussels 56 44 c 54 40 c Tokyo 64 57 pc 67 56 pc by 11:59 p.m. Eastern Time Sunday, April 16. A solver selected at random E N T I T Y WH O L O U
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A12 | Friday, April 14, 2017 THE WALL STREET JOURNAL.

SPORTS
BASKETBALL

The NBAs Most Polite Star


Mike Conley of the Memphis Grizzlies claims one of the most obscure streaks in sports: Hes never received a technical foul
BY BEN COHEN Technically Legal
How Mike Conley compares to active NBA veterans and two other notable
Memphis offenders in terms of career technical fouls.
THERE ARE TOO MANY NBA
140
games with too many close offici-
ating calls for a player not to occa-
sionally snap at a referee and re-
DeMarcus Cousins Dirk Nowitzki
ceive a technical foul. It happens 120
to nearly everyoneexcept Mem-
phis Grizzlies guard Mike Conley. Vince Carter
Conley has never earned a tech- 100
nical foul in his entire life. Not in
the NBA. Not in college. Not in Draymond

TECHNICAL FOULS
high school, summer tournaments Green
or any other level of organized 80
basketball. The leagues highest-
paid player is also its most polite.
Its almost impossible to be in LeBron James
60
the league as long as Conley and
completely avoid unsportsmanlike
conduct. Conley has played about
23,000 minutes over the last de- 40
cade. That is 43% more than any-
one else in the NBA without a
tech, according to Stats LLC. 20
No one with as much experience
as Conley has anything close to a
clean record. The average number of Mike Conley
career technical fouls for those play- 0
ers: 39. In fact, according to their 10,000 20,000 30,000 40,000 50,000
rate of techs per minutes played,
Conley should have 24 by now. MINUTES PLAYED
Note: Data as of April 2
Well, Im way below that, he said. Sources: Basketball Reference, ESPN, Associated Press (photos) THE WALL STREET JOURNAL.
As the NBAs oldest player,
Vince Carter has the perspective
to appreciate Conleys streak. He at the door. The game itself was cle. Conleys teammates take care
told Memphis rookies about their even more chaotic. Weve seen of him when they sense that Mem-
teammates pristine behavior in seven-car pileups with less vio- phis could use a strategic technical
the preseason, and Carter remains lence, one Indianapolis columnist foul. I told him Ill be the one to
so impressed by his record that he wrote afterward. get the technicals for him for what
recently shook Conleys hand sim- In the first half, Conley took an he wants to say, Carter said.
ply because it crossed his mind. elbow to the head during a dead Conley says he thinks officials
Its unbelievable, Carter said. ball. In the second half, Conley respect his patient approach. And
Hes mastered the ability to ap- was tackled on a layup. They theyre more likely to listen when
proach the referee in a civil, sane wanted to goad Conley into getting Conley disputes a call. It would
way in a hostile moment. kicked out. He just laid there and be out of character, Javie said,
What makes Conley such an let them be idiots, said Jack so human nature says maybe I
outlier is the correlation between Keefer, Conleys high-school coach. did miss this play.
how good a player is and how Conley still relies on that train- Mark Price had a similar reputa-
many techs he gets. Every one of Grizzlies guard Mike Conley chats with an official during the 2015 playoffs. ing more often than he might like. tion, Javie said, which is why he
the seven players with more than Two years ago, he fractured bones was surprised one morning years
13 this season was an All-Star. De- the $2,000 fine that would come one-syllable words: Oh no. around his left eye. This year, he ago when he read that Price had
Marcus Cousins alone had 18 with his first technical foul. Last Conley Sr. raised his son to keep fractured the vertebrae in his received a technical foul the night
more than the combined total of summer, he signed a five-year, calm by making him play against back. In the upcoming playoffs, before. Javie immediately called
all the San Antonio Spurs and $153 million deal, the richest in older kids from a young age, and hell be playing with gnarly the referee who nailed Price.
their coach Gregg Popovich. NBA history. He lived up to expec- his resulting disposition is particu- stitches after a recent collision on He didnt live it down for three
The truth is that a long career tations this season by scoring larly useful for a point guard. the court opened a cut above his years, Javie said. If I found out
means a lot of technical fouls. Dirk more than everand extending his He would get thrown left and right eye. someone hit Conley, I would bust
Nowitzki has played more than run without a tech past 700 right and end up laying on the I got used to being pushed his chops big-time.
anyone in the league and has dis- games. It may be the most osten- ground, and his mom would al- down, getting my eye split open and Other players get so many tech-
tinguished himself as a global am- tatious thing about him. ways tell me to go out and get guys talking trash, Conley said. nical fouls they forget them. Con-
bassador for the sport. Nowitzki His demeanor comes from Mike him, Conley Sr. said. I would You have to learn to live with it ley still recalls the times he nearly
also leads active players in career Conley Sr., the gold medalist in tri- never go out and get him. and adapt to it. Thats what I did. got Td up. He once shouted
technical fouls, according to ple jump at the 1992 Olympics, It only got worse for Conley Jr. Hes now the leader of a team cmon man! after a questionable
ESPNs statistics, which comes as a who has a similar personality. in high school. Indianapoliss Law- that protects him. The Grizzlies call and saw the referee start to
surprise even to referees. Get the When he coached his sons child- rence North played in one unfor- play by the mantra grit and grind, form a T with his hands. Then
heck outta here, said retired NBA hood basketball teams, Conley Sr. gettable game for which thousands and it has become such an embed- he saw the referee stop when he
official Steve Javie. said, he received a single technical of fans arrived hours in advance ded mentality that even the arenas realized it was Conley. Oh, the
Conley especially could afford foul. His outburst consisted of two while hundreds were turned away trash cans say: Grit. Grind. Recy- referee said. My bad.

CYCLING | Jason Gay

CONFESSIONS OF
A ZWIFT ADDICT
Awkward confes- France meets the video game Call
sion: I spent my of Duty.
winter in a dark- To do it, there are three things
ened basement, you need: the Zwift program, a
riding a station- screen, and a smart trainer.
ary bike versus Zwift you download and subscribe
robots. toits $10 a month, like Netflix.
OK, theyre The screen can be your laptop or a
not actually ro- tablet. Ive used both an iPad and
bots. Technically, theyre avatars my iPhone.
in a video game. And each is con- The most expensive thing you
nected to a real-life human pedal- need is that smart trainer. You
ing a stationary bike somewhere can spend a few hundred bucks on
else. Maybe the competition is in this, or go bonkers and spend
ZWIFT

California. Australia. France. more than a thousand. Technically


Japan. Or next door. you dont even need one to ride on A screenshot of the cycling experience on Zwift. Users can also ride in virtual cities like London or Richmond, Va.
And I want to crush them all. Zwift, but it would be kind of like
This is the addictive madness of not buying speakers for a music with them. You can arrange to ride more than a thousand virtual com- racing is a habit not without
Zwift, a virtual-but-not-quite-vir- player. Youre only getting a frac- with a friend. You can even race. petitors, she was invited to a Can- downsides: costs, travel and the
tual-reality bicycling program that tion of the experience. After a while, it felt like I was in yon-SRAM team camp and picked risk of injury. Will some racers
is not only radicalizing my indoor A smart trainer, which is Blue- there. I tricked my mind into be- to join the team. Shes already race less in real life because they
training, but also causing me to tooth-enabled, changes the whole lieving that the little cycling me competed in races on the Euro- can compete on Zwift?
think a lot about how sports may deal. You connect the trainer to on the screen was actually me. pean circuit with the sports best. Cyclists can complain about ev-
evolve in a virtual environment. your bikeany bike, and the And I suffered, gloriously. I get to wake up every morning erything. But Im not ready to de-
Im not just talking about cy- trainer connects to Zwift via Blue- Thats a big thing. Programs like and my job is to ride my bike, clare this an existential threat. Op-
cling: As technology progresses, tooth. This allows Zwift to auto- Zwiftand there are others out Thorvilson told me. timally, virtual racing will grow on
this will likely happen in a lot of matically adapt the tension on there, BKool, FulGaz, TrainerRoad Jonathan Vaughters, boss of the a parallel track to the real thing.
sports. Virtual software like this your trainer to the virtual surface and the granddaddy, Compu- Cannondale-Drapac World Tour cy- Though cheating can happen in
can change the way people train, youre riding. Hills feel like hills. Trainerdramatically improve the cling team, thinks Zwift could be- Zwiftyou can manipulate your
and the way serious talent is Flats feel like flats. If you slip in experience of indoor training, come a tool for broad talent weight, improving your watts per
found and developed. behind another rider, you get the which historically has been an aw- identification, especially at young kilogram performancethere are
In cycling, its already happen- drafting benefit of having to ful ritual for people living in cold- ages. Hes also enthusiastic about ways to certify performances as le-
ing: an American woman who won pedal a little less hard to stay with weather climates or hurried to get Zwifts potential to build cycling git, which will attract more riders
a Zwift virtual competition last the rider in front. an efficient workout in. For de- as a sport. Thats an opinion to competitions.
year is racing in Europereal rac- Thats the other thing: Zwift is cades, people pedaled in tortured, shared by USA Cyclings CEO, I asked Bouchard-Hall: could he
ing, on real roads, with pavement an utterly social gaming experi- lonely silence, maybe watching old Derek Bouchard-Hall. Its making see a day when there are USA Cy-
and cobbles and stuff. ence. Once youre in thereriding VHS copies of the Tour de France the sport more interesting to more cling-sanctioned races on Zwift?
Thats pretty nuts. For the inter- on the roads of virtual cities like or episodes of The Sopranos. people, Bouchard-Hall said. I could, he said. Why not?
section of sports and the digital London or Richmond, Va., (site of Ask Leah Thorvilson. Thorvil- I go back and forth on Zwifts As for me, Im planning to get
world, it feels like the cusp of the 2015 Cycling World Champion- son, 38, was an elite distance run- potential impact on real-life rac- my bike out of my cellar and say
something big. ships) or a made-up environment ner who turned to bike riding after ing. It can definitely build stronger goodbye to the robots, at least for
Before I get there, I should ex- known as Watopiayoure sur- injuries cut her career short. Last riders. Perhaps it can cultivate fu- a few months. Spring is here, and
plain what the heck Zwift is. It rounded by cyclists. Theyre ava- summer, she began competing in a ture racersthe game is fun, but its getting warm. Theres this ex-
isnt as Nutter Butters as it tars, but again, theyre real people, Zwift talent development program no virtual race will match the real perience called riding outdoors I
sounds. Basically, its like a spin- pedaling somewhere, just like you. aligned with the Canyon-SRAM pro experience of being on a road in a keep hearing aboutand its ap-
ning class meets the Tour de You can chase them down and ride racing team. After beating out real-life peloton. At the same time, parently real, and perfect.
THE WALL STREET JOURNAL. Friday, April 14, 2017 | A13

OPINION
Trumps Promise to Veterans BOOKSHELF | By Benjamin Shull

By Rebecca Burgess right against self-incrimina- were improperly awarded. bonus hunting. But the order Back in the
D
tion. Instead of being fired, the Nearly 10,000 soldiers, the focused mostly on reviewing
onald Trump pitched pair were demoted. Due to a Times reports, have faced ev- and streamlining the process.
himself as a friend to
the American military,
and to veterans in particular.
His campaign pledged to fix
VA paperwork mistake, how-
ever, the demotion had to be
rescinded in December 2015
and reissued.
erything from retroactive in-
terest to wage garnishment to
tax liens. Debt collectors and
tanked credit scores, the result
This process has dragged on
too long, for too many service
members, Mr. Carters state-
ment said. Too many cases
U.S.S.R.
the Department of Veterans
Affairs by firing the corrupt
Then the two got a reprieve
from the Merit Systems Pro-
of the retroactive action, will
haunt many of them for the
have languished without ac-
tion. Little was said about the
Who Lost Russia?
and incompetent VA executives tection Board, the quasi- foreseeable future. underlying injustice of the By Peter Conradi
who let our veterans down. judicial agency whose mission, Unlike the senior VA offi- matter. (Oneworld, 370 pages, $27.99)

I
Since taking office, however, in part, is to review the disci- cials, these soldiers werent Process is certainly impor-
President Trump hasnt de- plining of federal employees. accused of conspiring to game tant. As Alexander Pope mused: n 1996 President Bill Clinton lauded the re-election victory
fined what, if anything, his ad- the system. Rather, each For Forms of Government let of his Russian counterpart, Boris Yeltsin, and what the re-
ministration will do to make signed a service contract and fools contest; Whateer is best sult meant for the future. With a decisive voice, the Rus-
good on that promise. Here are Corruption at the VA happily took the bonus that administerd is best. But Alex- sian people chose democracy [and] deserve enormous credit
a couple of obvious wrongs he the military, under pressure ander Hamilton countered the for the remarkable progress they have made, for democracy
can easily make right. isnt punished, while to make up enlistment short- point in Federalist 68. The and toward a free economy. Five years after the dissolution of
In 2015, a pair of senior VA the Pentagon claws falls, was eagerly offering. true test of a good govern- the Soviet Union, the Wests belief in a cooperative and nomi-
officials were accused of de- Many consequently deployed ment, he wrote, is its apti- nally democratic Russia was running high.
frauding the department to the back signing bonuses. for multiple tours. What a tude and tendency to produce a How things have changed. Mid-1990s Russiacorrupt and
tune of $400,000. Diana way to thank them for their good administration. beset by economic woewas far from paradise, but it held out
Rubens and Kimberly Graves, service. The rules at the Defense De- the promise that it could be a partner once it had weathered
the directors of two regional The MSPB is the successor of Auditors later determined partment and the VA must ap- its post-Soviet growing pains. The regime of Vladimir Putin
VA offices, had allegedly ma- the U.S. Civil Service Commis- that the incentive program of ply to senior officials and en- has proved otherwise. Who Lost Russia?, Peter Conradis
nipulated the departments hir- sion, originally set up to pro- the California Army National listed soldiers alike. Without seamlessly written account
ing and transfer systems for tect federal workers from par- Guard had been operated like a consistency, even the best pro- of the countrys denouement
personal financial gain. Ms. tisan recrimination. slush fund, with as much as cess fails from the standpoint from potential partner of the
Rubens was accused of pressur- In early 2016 the MSPB fully $100 million misspent. The of justice. West to the adversary that it
ing a subordinate to leave the reversed the punishments of programs onetime leader, for- Exhibit A: the VA, where is today, seeks to find out
VAs Philadelphia office so she Ms. Rubens and Ms. Graves. mer Master Sgt. Toni Jaffe, employees are rewarded be- where things went wrong.
could take the job herself, move Furthermore, the VA did not to was sentenced in May 2012 to cause they technically followed The authorthe foreign edi-
from Washington, and collect a try to recover the taxpayer 30 months in prison after a process. Exhibit B: the Penta- tor of Londons Sunday Times
$288,000 relocation payout. funds that the pair had col- pleading guilty to filing $15.2 gon, which could not protect doesnt explicitly answer the
Similarly, Ms. Graves received lected for relocating. It seems million in false claims. Three even itself with its own pro- question his title poses. Instead
more than $129,000 by engi- that since senior officials ap- other officers were put on pro- cesses. If Mr. Trump wants to he entertains arguments from
neering a move from Philadel- proved the $400,000, it would bation and forced to pay resti- do right by veterans and the both sides of the Atlantic, in turn
phia to St. Paul, Minn. have been somehow improper tution. military, he could begin by in- challenging consensus thinking
Allison Hickey resigned in to ask for the money back. Yet, for some reason, the sisting on consistency. about U.S.-Russian relations over
October 2015 as the VA under- Yet the Los Angeles Times Pentagon decided to claw back the past 30 years. Does the blame
secretary for benefits amid in- revealed in October 2016 that money from the veterans who Ms. Burgess manages the for todays animosity lie with the U.S.
vestigations into her role in the the Defense Department had had received the bonuses. Con- Program on American Citizen- for failing to integrate Russia into the Western
scheme. Ms. Rubens and Ms. been forcing National Guard gress, it turns out, knew about ship at the American Enter- alliance system and for maintaining a hostile military posture
Graves were called to appear veterans to repay re-enlist- the situationor at least the prise Institute. close to its borders? Or does the fault belong to Russia, unable
before the House Veterans Af- ment bonusessometimes up California delegation did. to accept its status as a lesser power in the aftermath of the
fairs Committee that November, to $20,000they had received When the story hit the press, Kimberley A. Strassel is Soviet Union?
but they refused to testify, in- during the mid-2000s. The then-Defense Secretary Ash away. Mr. Conradi eschews a simple explanation and he shares a
voking their Fifth Amendment Pentagon said the bonuses Carter ordered a halt to the number of illuminating anecdotes that suggest paths not
taken. For example, he reports that Mr. Putin was the first for-
eign leader to call Washington after the attacks of Sept. 11,

My Childhood as a Roaming Catholic 2001. Mr. Putin pledged his countrys assistance over the
phone to Condoleezza Rice, whose thought at the time was:
The Cold War really is over.
HOUSES OF In April 1978 The road trip was soon It must have been, because rediscover what made them fall Mr. Putin, however, still discerned a lingering Cold War
WORSHIP my family over, and in time we would we went in and experienced in love in the first place. Imme- mentality in the West, and the prime culprit was NATO. The
By Michael traded Bos- settle into our new commu- an Easter Sunday Ill never diately my sister and I tried to Russian leader framed the alliance as an existential threat to
Kerrigan ton urbanity nity. But there was no way of forget. The priest looked like a identify the unlucky couple his countrys security and the sphere of influence it felt enti-
for the rela- knowing how long it would cast member from Hair as among the parishioners. tled to. Like Russian leaders before him, the author writes,
tively un- take, especially after our first he led an entrance procession During the Our Father, ev- Mr. Putin wanted weak, disunited countries along his borders
tamed South. We had fol- Sunday in town, which hap- inspired more by Frampton eryone in the pews held rather than strong, united ones. Only this way could Russia
lowed career opportunities pened to be Easter. It left us than Bach. His vestments, hands, even across the aisle. have the strategic depth it needed for its defence. For Mr. Pu-
for my dad before, but never even more disoriented than such as they were, barely hid This wasnt just tolerated. It tin, NATO expansion was Exhibit A in the Wests plan to encir-
outside the Northeast. My when we arrived, and 40 years casual attire underneath, and was a necessary condition, the cle his country, a perception crystallized by the events sur-
parents put on a brave face later I remember it well. had the permanence of NBA closing of the electrical circuit rounding Ukraines 2004 presidential election.
during the two-day drive My mom and dad, cradle before the priest would throw
from Massachusetts to Vir- Catholics, had old-school ex- the switch. Such liturgical
ginia, a trek made longer by pectations of grandeur and Moving from Boston, flourishes were becoming For Putin, NATO expansion was Exhibit A in
unreliable movers, but mostly tradition in sacred spaces. more common after Vatican II, the Wests plan to encircle Russia, a perception
they were trying to convince Think priests draped in rich we experienced but taken together it all was
themselves they had made the vestments, ensconced in in- culture shock in a more than my traditional old crystallized by Ukraines Orange Revolution.
right choice. cense. Our new church decid- man could bear.
We kids were all in from edly did not meet their expec- Virginia parish. So for the only time in my
the start, no need for a pep tation. Catholic upbringing, we After widespread protests greeted the fraudulent victory of
talk. As an 8-year-old, it all We arrived at a nearly briefly split with the Church Kremlin-backed Viktor Yanukovych, demonstrators in subzero
felt like an adventure to me. empty parking lot. Is this tearaway warm-ups. Thank- of Rome. It lasted no longer temperatures forced a closely monitored recount that resulted
The gas-station clerk gave my some kind of joke? my dad fully my dads eyes never than a few weeks. Yet until my in a triumph for Mr. Yanukovychs opponent, Viktor Yush-
siblings and me free Tootsie asked aloud, looking around made it to the priests feet. If dad could find a proper par- chenko, who had advocated Ukraines integration into the Eu-
Pops. Our hotel room had that despondently. We were at the they had, he surely would ish, we gathered in the ropean Union and NATO. The Bush administration heralded
smell I associated with right address, but there was have booked him for the crime kitchen Sunday morning and this Orange Revolution as a victory for Ukrainians agitating for
swanky accommodations and no church in sightonly an ar- of Wearing Sandals While Not read the Bible over break- fair elections. Moscow saw things differently. Alarmed by the
years later learned was just chitectural monstrosity of an Franciscan. We hadnt even fastno musical numbers. surge of Western nongovernmental organizations operating in
stale cigarette smoke. elementary school. My mom made it to the homily. Nor was there a homily. Ukraine at the time, the Kremlin detected an American hand in
On the second day of the saw a sign directing churchgo- The sermon had its share The eating of bacon was the defeat of its preferred candidate. The United States, as
trip, I gave my little brother a ers to the worship area down- of gems. At one point hell was permitted, even for the lector, Mr. Conradi summarizes Moscows view, was trying to detach
perfectly timed kidney-poke. stairs, known during the week defined as the state of having my dad being of the mind Ukraine from Russias orbit, and its professed concerns for de-
This caused him to leap up as the cafeteria. We walked everything on earth you could that where two or three mocracy and human rights were little more than a cover for
and hit the roof of the car down a dimly lit staircase. ever want but nobody to share gather in my name and there Americas geopolitical interest. The Orange Revolution would
with his head, which led to a Like Dante being led into the it with. I distinctly remember eat bacon, I am in the midst constitute a watershed moment in Mr. Putins feelings toward
near accident and an actual underworld, my father stepped looking to my sister with a so of them. As hardy carni- the U.S. and the West.
beating. You know youre in lightly. Eventually we made it what? shrug of my shoulders. vores, nobody belabored the Ukraine never got an invitation to join NATO, and in 2010
for a good thrashing when you to the basement. And thats when the bottom theological point. Mr. Yanukovych won back the Ukrainian presidency, rekindling
cause the car to go north mo- Are you telling me that fell out. Thats my Easter memory the countrys relations with Russia. Perhaps the final breaking
mentarily on a southbound were going to Mass on Easter After the homily the floor on this Good Friday, and why point for Mr. Putin came when history seemed to be repeating
freeway. My dad delivered a Sunday inside a public-school was opened for special inten- Ill smile when I eat bacon this itself: In 2013 Mr. Yanukovych, having abandoned an agreement
flurry of indiscriminate cafeteria? he asked. I caught tions, and Mass became an Easter Sunday. This time after with the EU, became the object of pro-Western demonstrations
smacks from the drivers seat. his reflection in the trophy open-mic night at an encounter Mass. and eventually was forced to leave the country as clashes be-
Horrifying today, sure, but it case, and he looked like he group. Really personal stuff tween riot police and protesters grew ever-more violent.
was more or less routine back was ready to call Rome. Is was aired, like a well-intended Mr. Kerrigan is an attorney Moscow would subsequently roll into eastern Ukraine and
then. that even constitutional? wish that Doreen and Fred in Charlotte, N.C. annex the Crimean peninsula in 2014. Though the action
earned his country Western sanctions in response, Mr. Putin
enjoyed a domestic bump in popularity: Bringing Crimea back

Did George Washington Take Emoluments? under Russian control was sold to the Russian public as the
long-overdue righting of a historical wrong, Mr. Conradi
writes; the move fitted well with Mr. Putins attempt to por-
By Eugene Kontorovich farm and estates. Rather, his Mr. Trump is that any pecuni- proximity to what would be- tray himself as the leader of . . . a Russian world that included

M
nephew George Augustine ary advantage constitutes a come the nations capital in compatriots left outside the borders of the Russian Federation
uch has been made of Washington managed them forbidden emolument. That 1800. Large public-works proj- after the collapse of the Soviet Union.
Donald Trumps deci- while Washington remained would mean Washington and ects were taking placea cir- Who Lost Russia? brings the reader up to the very-near
sion to retain owner- involved. As with Mr. Trumps Jefferson would have had to cumstance over which he had present, taking in the mounting death toll in East Ukraine, in-
ship of his businesses during hotels, Washingtons renters ensure that no U.S. or foreign some control. cluding all 298 people on Malaysia Airlines Flight 17, errantly
his presidency. Earlier this or purchasers could include official stood on the other side Such a direct business solici- shot down in 2014 by Putin-backed rebels near the Russian
year a group of law professors foreigners. of any transaction. Yet neither tation of a foreigner with for- border. A chapter called The Siberian Candidate summarizes
and prominent attorneys filed The president received con- president, despite their close eign government ties would the extraordinary 2016 U.S. presidential election, from the
a lawsuit in New York federal stant reports from his nephew supervision, appears to have surely lead to cries of constitu- hacking of the Democratic National Committee to Donald
court that called into question and subsequent managers and taken any such steps to curtail tional breach if Mr. Trump did Trumps feints of admiration toward Mr. Putin.
the constitutionality of this wrote to them weekly. His let- who they did business with. it. But the emoluments restric- Mr. Conradis account, of course, cannot keep up with the
decision. The suit argues that ters could run 10 pages, with One letter written by Wash- tion only applies to benefits continuing investigations into the Trump campaigns alleged
the Trump Organizations ho- ington deserves great attention from foreign states, and what contacts with Moscow or the administrations shifting posture
tel rentals to a Chinese state- in the current debate. On Dec. entities count as parts of a for- toward Russia. But it is fascinating to read the authors sum-
owned bankalong with royal- He asked a British 12, 1793, Washington wrote to eign state for these purposes mary of Russias actions in Syria in the context of recent
ties on The Apprentice from official to help find Arthur Young, an officer of the remains fuzzy. Washingtons so- events. Noting the connection between Russias Syrian bomb-
state television in countries U.K. Board of Agriculture, an licitation of a U.K. Board of ing campaign and the refugee crisis that has roiled domestic
such as Vietnamviolate the renters for his land. entity newly created and Trade member suggests that ei- politics all over Europe, Mr. Conradi presents an arresting
Constitutions Foreign Emolu- funded by Parliament at the ther business transactions are thought experiment. Was that part of Putins plan? he asks.
ments Clause. initiative of William Pitt. The not emoluments at all, or for- It would be difficult to prove, but by this point, anything that
Mr. Trump is not the first granular instructions on what president asked for Youngs eign entities such as state weakened European unity served Russias geopolitical inter-
president to have business to buy, sell and plant. This help in renting out his Mount banks and television stations do est. In other words, for future historians the question may not
dealings with foreigners. That wasnt an anomaly: Thomas Vernon lands to secure an in- not fall within the scope of the be who lost Russia? but who lost Europe?
was actually George Washing- Jefferson, the third president, come for his retirement. Not clause. Given the Founding Fa-
ton, whose conduct in office also continued to supervise his finding customers in America, thers precedent, the legal ob- Mr. Shull is an assistant books editor at the Journal.
has been a model for every business while holding the na- he wondered if Young, with his jections to many of Mr. Trumps
president. tions highest office. This belies agricultural connections, could affairs would puzzle those who
By the 1790s, Washington the notion that the Constitu- find and organize some would- framed and breathed life into Coming in BOOKS this weekend
was wealthy primarily because tion limits a presidents man- be farmers in his home country the Constitution. The best White House chief of staff A still unfathomable
of real estaterenting and agement of, or benefit from, his and send them over. atrocity Picturing physics Victims of an oil boom
selling his vast holdings. existing business ventures. Washington noted that the Mr. Kontorovich is a law Founding stallion Mary McCarthys fiction Kimchi
When Washington became The new view of the Emolu- land would surely increase in professor at Northwestern Uni- confidential The London Zoo Childrens books & more
president he did not sell his ments Clause advanced against value because of its close versity.
A14 | Friday, April 14, 2017 THE WALL STREET JOURNAL.

OPINION
REVIEW & OUTLOOK LETTERS TO THE EDITOR

The Kushner-Cohn Ascendancy Syria, the Will to Act and Intelligence Failure

A
ll new Presidencies are works in progress, the White Houses Rasputin, or Trotsky, but ap- Regarding your editorial Obama Imagine how todays world might
though the Trump Administration is less parently the revolution will be postponed. In re- WMD Intelligence Failure (April 8): I be if President Obama had struck Syr-
dont think it was a question of ian air fields in 2013 after Syria
fully formed than most. Amid a shaky cent days sometimes you could almost mistake
Obama administration officials lying. crossed the presidents red line by
early start, leaks and personal Mr. Trump for a normal Re- What Secretary of State John Kerry gassing 1,500 Syrians to death.
feuds, power seems to be shift- The Trump White House publican President. and Susan Rice meant was, to the No Brexit? Striking Syrias air fields
ing away from chief White has more conservatives Messrs. All of this is empowering best of our knowledge or it is our would have likely led to a stalemate
House strategist Steve Bannon Kushner and Cohn, understanding after discussions with on the ground in Syria, thus allowing
and toward President Trumps than Steve Bannon. who are preaching compe- Russian and Syrian officials that the millions of Syrians to stay in place
son-in-law Jared Kushner and tence and calm. The real-es- entirety of chemical weapons have rather than flee and destabilize Euro-
National Economic Council Di- tate heir and former Goldman been removed. The administrations pean politics.
rector Gary Cohn. This makes sense if it helps Mr. Sachs No. 2 are expanding their portfolios and statement that diplomacy rather than As many as 100,000 fewer deaths
Trump put his White House in order and puts re- Mr. Cohn is running the economic decision- limited strikes was so effective was in Syria? Action by the U.S. in 2013
sults over melodrama. making process. intended to defuse criticism of Presi- likely would have saved thousands of
dent Obama as ditherer-in-chief. lives due to the stalemate on the
The transition from running a boutique fam- Some conservatives say that sidelining Mr.
Any intelligence reporting to the con- ground.
ily business to an election campaign to the most Bannon would betray Mr. Trumps core outsider trary would have been simply ignored No Trump? A stalemate in Syria
powerful and complicated government on the promises on trade, immigration and much else. by an administration eager to praise would have partially deflected anger
planet has a steep learning curve. Mr. Bannon, But the reality is that Mr. Trump needs more the presidents diplomatic efforts, as over President Obamas inept foreign
the former Breitbart website publisher, was an political and policy victories in his young Presi- was also the case with the Iran deal, policy with respect to Iran, Syria and
architect of Mr. Trumps populist insurgency, dency. If Mr. Bannon cant deliver results, Mr. the Bowe Bergdahl exchange for five Russia, thus costing Donald Trump
and he entered the West Wing with the Presi- Trump needs people who can. Taliban leaders, etc. Syrias retention some support.
dents ear. Mr. Cohn is a pragmatic Wall Street Demo- of poison gas wasnt an intelligence JIM SCHAEFER
Yet Mr. Trump told the New York Posts Mi- crat, and he lacks the vocabulary of free-market failure, but a failure by President Shaker Heights, Ohio
chael Goodwin this week that I like Steve, but conservatives. But hes assembled an impres- Obama to face the fact that diplomacy
you have to remember he was not involved in sive team at the National Economic Council, in- can only be successful based on verifi- Regarding Paul Wolfowitzs call for
cation and not wishful thinking. President Trump to take action
my campaign until very late. He followed up cluding Shahira Knight on taxes, Brian Blase on DAVID DAKSHAW against Syrias Bashar al-Assad for
with Journal reporters, noting that I do my health care, Michael Catanzaro on energy and Munichthe use of chemical weapons against
own policy, Im my own strategist and calling others. Theyll be a source of thoughtful and his own people (What Comes After
his aide-de-camp a guy who works for me. constructive expertise. The magnitude of the Obama ad- the Syria Strikes, op-ed, April 11):
The Time magazine cover story in February bill- Mr. Trump has also named the corporate-tax ministrations WMD failure and par- Mired in a health-care debacle and
ing Mr. Bannon the shadow president proba- expert Kevin Hassett of the American Enter- ticularly that of Susan Rice, the na- bargain basement poll numbers,
bly didnt help his standing with a boss who prise Institute to lead the White House Council tional security adviser at the time, the president has suddenly been
doesnt like to be upstaged. of Economic Advisers, and he nominated Neomi may well be understated if other me- handed a political distraction and a
Mr. Bannon was also the author of the Ad- Rao of George Mason University as his White dia reports are considered. First, the cause. After 400,000 deaths in the
ministrations early miscalculations, including House regulatory policy czar. The idea that the Syrian air base missile strike by the Syrian Civil War, it took the last 85 to
U.S. was originally planned during the convince President Trump of that
a divisive inaugural address and especially the Administration would lack conservative voices
time both were in office; second, wars inhumanity. These gruesome
immigration executive order. The travel ban without Mr. Bannon is overwrought. post-strike reports indicate that deaths gave him reason for loosing
was overbroad and poorly drafted, got blocked The crucial test for Messrs. Kushner and chemical weapons facilities at the tar- scores of cruise missiles against a
by the courts, energized Democrats and created Cohn will be tax reform. If they can overcome geted air base were specifically Syrian government airfield, thereby
dozens of media hardship stories. Democratic and interest-group opposition, avoided by the programmed Toma- demonstrating our mettle to the
Mr. Bannon is also getting blameperhaps stitch together fractious Republicans, and hawk missiles. So to avoid the chemi- world while making America great
more than he deservesfor the ObamaCare merge Mr. Trumps populist instincts with pro- cal weapons storage and program the and first again.
repeal-and-replace failure. He couldnt deliver growth reform, he has the opportunity to raise missiles to do so, the administration Unlike Iraq in March 2003, we the
the ornery conservatives in the House Free- wages and expand jobs. Thats how voters will had to know of such storage at the air people are smarter now. We want to
dom Caucus, despite issuing a typically blunt judge him in 2020. base at that time. This suggests that know from the president, and from
ultimatum that they had no choice. But most The truth about White Houses is that they both Ms. Rice and then-President grand strategist Paul Wolfowitz,
Obama knew that all chemical/bacteri- whats next? Whats your endgame?
of the fault lies with the Freedom Caucuss re- always reflect the President, for better or
ologic materials had not been re- What price are you willing for others
fusal to compromise that is giving Mr. Trump worse, and Mr. Trump has a, well, unconven- moved and destroyed as both Syria to pay to achieve whatever you are
doubts about the utility of working with con- tional management philosophy. If he does reor- and Russia claimed. We, the people, trying to achieve? Why do you always
servatives. ganize his inner circle, it will be a sign that the were told all the weapons had been go for the gun first?
Consumers of media may have whiplash former businessman is becoming better edu- destroyed. STEVEN L. HULL
from Mr. Bannons ebbing influence. Only weeks cated about his new, and much larger, responsi- NORMAN C. LERNER Captain, U.S. Navy (Retired)
ago pundits were characterizing Mr. Bannon as bilities. Annapolis, Md. Reno, Nev.

Trumps Big Bomb There Are Simply No Winners in Syrian War


A
s demonstration effects go, it would be fight. The armed forces of Iraq, for example, are I disagree with A Winner in involvement in Syria there was a
hard to top the bomb the U.S. dropped on the brink of recovering Mosul from Islamic Syrias Civil War: Hezbollah (page tidal shift in Arab opinion away
Thursday on Islamic State in Afghani- State and have taken huge casualties to do so. one, April 3). Hezbollah is con- from the group. A testament to
stan. The 21,000 pound But it will be difficult to con- fronted with major losses and chal- this loss of soft power is the Gulf
GBU-43, or mother of all Lets hope the right solidate an achievement like lenges due to its immersion in the Cooperation Councils classifying
bombs, landed on Islamic people noticed this blast that unless other nations are Syrian quagmire. This involvement Hezbollah as a terrorist group and
State installations in eastern willing to make similar com- has cost it dearly and weakened it. clamping down on its financial sup-
Afghanistan. against Islamic State. mitments to support the fight, Thousands of Hezbollah fighters porters and many others in its core
What happened at the re- whether in Iraq, Syria, Af- have been killed or injured in Syria, constituency.
ceiving end of the bomb isnt ghanistan or Yemen. many permanently disabled. Hezbol- There are simply no winners in
lah is on the hook financially to pro- the Syrian quagmire.
known, nor would White House Press Secretary Momentum routinely wilts beneath the poli-
vide for the families of its war dead PROF. IHSAN ALKHATIB
Sean Spicer say whether President Trump per- tics and factions across the Middle East. The and injured while facing dwindling Murray State University
sonally gave authorization, which isnt needed strike against Syria and now the use in Afghani- financial resources. The arrest of its Murray, Ky.
to deploy the GBU-43. But like the 59 Tomahawk stan of the biggest non-nuclear bomb in the ac- major financier Kassim Tajideen and
cruise missiles that struck a Syrian airfield last tive U.S. arsenal makes clear Americas resolve his extradition to the U.S. is part of
week, the right people no doubt noticed this dis- to our allies. Islamic State wont be defeated several successful and effective mea- Parkinson Had Bureaucracy
play of American purpose. without buy-in from those allies. sures to clamp down on Hezbollahs
At the top of the list would be Islamic State, We may also assume that the missile- finances. This increased financial
Unmasked Over 70 Years Ago
which Mr. Trump has promised to eliminate. The launching crowd in Pyongyang noticed the de- pressure coincides with increasing Andy Kesslers insight (When to
terrorist group has seized territory in Afghani- ployment of the GBU-43. Far be it from us to financial liabilities due to the Syria Sell? Look at the HQ, op-ed, April 10)
stans Nangahar Province, near the border with suggest that the U.S. drop one on a North Ko- war. that the construction of a fancy new
Most important, the group has headquarters for a corporation is an
Pakistan. The Afghan army, supported by the rean nuclear factory. But in the space of a
lost its soft power in the Arab and excellent sell signal for its stock was
U.S., has taken significant losses in its attempt week, Kim Jong Un, Vladimir Putin, Bashar Muslim world. The group used to anticipated over 70 years ago by the
to dislodge ISIS. The commander of U.S. forces Assad, Xi Jinping and ISIS leader Abu Bakr be immensely popular, but after its British historian C. Northcote Parkin-
in Afghanistan, Gen. John Nicholson, called the al-Baghdadi, wherever he is hiding, have son. Parkinson was a pioneering stu-
GBU-43 smart bomb the right munition to learned that the U.S. considers it to be in its dent of bureaucracies and the laws of
maintain momentum against ISIS. interest to push back hard against its adver- The FDA Needs a Shake-Up their operations. Expenditures rise
Momentum is an important concept in this saries aggression. By Someone Like Gottlieb to meet income, Work expands ac-
cording to the time available for its
Regarding your editorial The Man completion, and The number of
Religious Liberty at the Supremes Who Knows Too Much (April 6): The people in any working group tends to
prospect of Scott Gottlieb at the helm increase regardless of the amount of

C
of the Food and Drug Administration work to be done are as true today as
an a church be cut out of a state funding ing that the laws violate the First Amendments threatens both internal and external when he first proposed them. In one
program merely because its a church? guarantee that Congress shall make no law re- special interests involved with the study, he looked at buildings as dispa-
Thats the question on Wednesday when specting an establishment of religion, or pro- FDA. Internal special interests at the rate as St. Peters in Rome, the
the Supreme Court hears ar- hibiting the free exercise FDA are those whose highest priority League of Nations Headquarters in
guments that could determine A full Court of nine thereof as well as the Consti- is the maintenance of the power of Geneva, the new capital of British In-
whether state laws that dis- takes on anti-Catholic tutions guarantee of equal the FDA bureaucracy itself. Their pri- dia in Delhi and the palace at Ver-
criminate against religious protection. A federal judge ority is to make sure that no patient sailles and found that each magnifi-
groups violate the First Blaine Amendments. dismissed the churchs claim obtains effective treatment or sur- cent edifice was finished just as the
Amendment. and the Eighth Circuit Court vives illness without government per- institution due to occupy it was
In 2012 Columbia, Mis- of Appeals agreed, ruling that mission. headed to a precipitous decline.
External interests serve a political Hence another of his Laws of Large
souri-based Trinity Lutheran Church applied to state money used to resurface a church play-
and ideological agenda unrelated to Organizations: A perfection of
participate in the states Scrap Tire Grant Pro- ground was an improper payment to a religious the safety or efficacy of new drugs planned layout [of a headquarters] is
gram, which gives money to schools or other organization. and medical devices. Their priority is achieved only by institutions on the
groups that want to resurface playgrounds with Those opposed to the church receiving state to make sure that no one anywhere point of collapse.
recycled tires to provide a safer surface. The money for its playground cite the Supreme can earn a return on their investment PETER ROSE
program is neutral and secular and provides Courts 2004 decision in Locke v. Davey, in in the development of new, life-saving New York
around a dozen applicants with playground ren- which the Justices ruled that a publicly funded drugs and equipment. Better that pa-
ovations each year. scholarship program was not required to fund tients suffer and die than to allow a
The church wanted the new surface for the students seeking degrees in theology or reli- profit for those who might save them. Pepper ...
playground used by its preschool, but the Mis- gious studies. But unlike Locke, in which the Their priority is preventing the mor-
tal danger of free enterprise in im-
And Salt
souri Department of Natural Resources (DNR), public money was paying for the furtherance
proving medicine. THE WALL STREET JOURNAL
which runs the program, rejected the applica- of Christian theology, the money applied for by
It has taken 110 years for the FDA
tion. In a letter to Trinity Lutheran, the DNR ex- Trinity Lutheran was for a neutral and nonreli- to get us to this point. We need more
plained that Article I, Section 7 of the Mis- gious purpose. qualified and knowledgeable experts
souri Constitution specifically provides that no By explicitly excluding the church preschool like Dr. Gottlieb to roll this back.
money shall ever be taken from the public trea- from a secular program because it is run by a re- RICHARD E. RALSTON
sury, directly or indirectly, in aid of any church, ligious organization, Missouri is discriminating Executive Director
sect, or denomination of religion. in violation of the Constitutions free exercise of Americans for Free
This language is known as the Blaine Amend- religion clause. The Founders wanted religious Choice in Medicine
ment, one of many state laws passed amid a groups treated equally and without government Newport Beach, Calif.
burst of anti-Catholic sentiment in the late 1800s interference, not to have them discriminated
to cut off public funds for religious schools. More against because of their religion. Letters intended for publication should
recently, progressives have adopted Blaine Blaine Amendments have become a favorite be addressed to: The Editor, 1211 Avenue
of the Americas, New York, NY 10036,
Amendments to bar state money for religious or- weapon against school vouchers that threaten or emailed to wsj.ltrs@wsj.com. Please
ganizations and block voucher programs that let the public school monopoly. The Justices should include your city and state. All letters
parents choose religious schools for their chil- make clear that using the amendments to ex- are subject to editing, and unpublished
dren. clude religious groups from public benefit pro- letters can be neither acknowledged nor Keep in mind youre
returned.
Trinity Lutheran sued in January 2013, not- grams violates the Constitution. in steerage class.
THE WALL STREET JOURNAL. Friday, April 14, 2017 | A15

OPINION

Youre Fired, Trump Should Tell Cordray


By David B. Rivkin Jr. authority to take care that the laws Not only did the agency run rough-
And Andrew M. Grossman be faithfully executed. shod over that limitation, but its

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When Congress created the CFPB statistical analysis relied on dubi-
he greatest mystery in by passing the Dodd-Frank Act of ous methods such as guessing bor-
Washington involves not 2010, Judge Brett Kavanaugh ex- rowers race based on their sur-
Russian spies or wiretaps plained, it broke with decades of his- names.
but Richard Cordrays con- torical practice. Generally the power No such guesswork was required
tinued employment as di- of independent agencies is diffused for the Merit Systems Protection
rector of the Consumer Financial among multiple commissioners or Board and Government Accountabil-
Protection Bureau. In the face of directors so as to reduce the risk of ity Office to find that the CFPB itself
President Trumps mandate for abuse. Unless he can be fired, Mr. had become a hotbed of race and sex
change, Mr. Cordray continues the Cordray, as the sole director of the discrimination. As early as 2013, a
Obama administrations regulatory CFPB, wields more unilateral power report by Deloitte Consulting re-
crusade against lenders, blocking ac- than any government official save vealed that the agencys internal
cess to the credit that supports so the president. performance reviews were biased

ASSOCIATED PRESS
many small businesses and so much The panels decision, however, against minority employees, many of
consumer spending. was set aside in February when the whom also reported discrimination
full 11-judge court voted to rehear at the agency. Years later, claims of
the case. White House lawyers are discrimination persist, particularly
Under a dubious statute, reportedly waiting to see how the among black employees. Mr. Cordray
litigation unfoldsa process that Richard Cordray at a hearing in Denver, Oct. 7, 2015. failed to resolve these issues even
the CFPB head can be could go well past the end of Mr. years after initial reports.
dismissed only for cause Cordrays term in mid-2018. products, driving vulnerable Ameri- enforcement, which forgoes orderly Any of these things would be suf-
But it is a mistake to regard the cans to depend on riskier sources of rule making entirely in favor of im- ficient to dismiss Mr. Cordray for
but theres plenty of it. twists and turns of that appeal as a financial services and credit. The posing penalties for newly contrived cause. All of them together make it
reason to give Mr. Cordray a re- agency has even worse policies in violations. This is no way to run a necessary to do so.
prieve. Whatever the D.C. Circuit ul- the works, such as limits on con- financial watchdog. If Mr. Cordray were to challenge
Why would a president who made timately decides, no one disputes sumer arbitration and payday lend- Neglect of duty. Mr. Cordray al- his firing, we have little doubt the
a TV show out of firing underlings that the president may dismiss the ing. lowed tens of millions of dollars in courts would support Mr. Trump.
now suffer a subordinate who re- CFPB director for cause. And the evi- Taken as a whole, the CFPBs cost overruns to pile up for a lavish Assuming the courts even agreed
fuses to get with the pro-growth dence is ample to support firing Mr. heavy-handed approach to regulation renovation of the CFPBs Washington that they have the power to review a
agenda he campaigned on? If reports Cordray, on all three grounds per- and enforcement has driven up the headquarters. presidential finding of cause for dis-
from the West Wing are to be be- mitted under law: cost of borrowing, to the detriment of The agency also missed the major missalwhich is far from estab-
lieved, Mr. Trumps unusual timidity Inefficiency. Regulation, the Su- consumers and small businesses. consumer-finance scandal of the lishedthey would still grant it sub-
is the result of overcautious legal preme Court has recognized, should More prosaically, Mr. Cordrays past decade. It ignored years of com- stantial deference. The president
and political advice. seek to maximize economic effi- CFPB has botched basic administra- plaints about an epidemic of unau- would prevail, so long as he has doc-
Mr. Cordray is insulated from ciency through cost-benefit analysis. tive procedures meant to ensure effi- thorized customer accounts at Wells umented his findings, explained his
presidential control by a New Deal- Yet the CFPB has pursued an agenda ciency in regulation. About a third of Fargo. The CFPB galloped in to exact reasoning, and satisfied any due-pro-
era innovation: a statutory clause at odds with any clear-eyed view of its rules were finalized before being a penalty only after an investigation cess concerns by affording Mr.
that allows the president to fire an economic growth and efficiency. published in the agencys Unified by California officials and other reg- Cordray an opportunity to respond.
independent agency head only for Its rules have made community Agenda, depriving the public of valu- ulators was complete. As far as Mr. Cordray is concerned,
cause, meaning inefficiency, ne- banks and credit unions more reluc- able notice and frustrating the regu- Malfeasance. What was the no further caution is required. What
glect of duty, or malfeasance in of- tant to issue mortgages, particularly latory review process. That haste has CFPB doing all that time? The bu- the president needs is resolve, and
fice. In October a three-judge panel in rural areas, and accelerated con- also led to serious errors: About a reau, it turns out, had spread its re- his famous TV catchphrase.
of the U.S. Circuit Court of Appeals solidation of the industry, reducing quarter of the CFPBs rules have re- sources too thin, focusing on al-
for the District of Columbia struck competition. Its regulations have quired correction after being final- leged discrimination in auto-dealer Messrs. Rivkin and Grossman
down that restriction an infringe- limited access to checking accounts, ized. Further, Mr. Cordray has specif- lendingan area that Congress spe- practice appellate and constitutional
ment of the presidents constitutional credit cards and other financial ically embraced regulation through cifically excluded from its purview. law in Washington.

The Syria Success Creates a Chance for Bipartisan Tax Reform


By David M. Smick this week, according to Gallup. Go- Contrast these results with the steady income gains, whether they The president should also ask the

P
ing bipartisan on tax reform may meanly partisan eras of George W. were headed by men or women, by Senate to move quickly on such a
resident Trumps successful be a way to win back that support. Bush and Barack Obama, which fea- blacks, whites or Hispanics, or by plan under regular order, meaning
strike on Syria has earned But merely calling for bipartisan- tured average growth of 2.1% people with high school diplomas or 60 votes required for passage. For
him praise across party lines. ship isnt enough. The president (2001-08) and 1.5% (2009-16). college degrees. now, leave out overhauling the indi-
Chuck Schumer, the top Democrat in needs to quickly put a proposal on Rob Shapiro, a former economic Which brings us back to Mr. vidual tax code, which would only
the Senate, lauded the Syria strike the table. adviser to President Clinton, argued Trumps fiscal policy. The president inflame partisan passions. Argue the
as the right thing to do. His coun- Bipartisanship has historically in a March 2015 paper for the should reach out to Democrats and merits of individual tax changes in a
terpart in the House, Nancy Pelosi, been good for the economy. Presi- Brookings Institution that one rea- put on the table a bipartisan plan later reconciliation bill, which re-
called it a proportional response. dents Reagan and Clinton were will- son for the difference is that the with four elements. First, reduce quires only 51 votes for passage.
Could this be a new beginning, an ing to compromise when they had corporate tax rates from 35% to 20%, The key to winning legislatively is
opening for renewed bipartisan- no other choice, which provided cer- with pass-throughs included and to build momentum. Mr. Trump
ship? tainty and stability to financial mar- Trump should reach many loopholes eliminated. Second, showed a different side of himself
For the moment, Washington is kets and businesses. allow immediate expensing of capital when he acted decisively in Syria.
on hold. Republicans continue trying In 1983 Social Security faced insol- out to Democrats and investment. Third, create a generous Now he could demonstrate the same
to negotiate a deal on health-care vency in a matter of months. Presi- put a plan with four repatriation incentive that allows largeness of character and political
reform. Those negotiations will de- dent Reagan worked with Democratic American companies to bring home flexibility in his fiscal policy. Demo-
termine whether Congress can pass House Speaker Tip ONeill on a com- elements on the table. the $2.5 trillion sitting offshore so crats and Republicans alike should
tax reform this year. While the coun- promise plan to save the system by long as they purchase a specified remember that policy changes often
try waits, President Trump loses raising the retirement age, delaying amount of low-interest infrastruc- show their effects after an uncertain
nothing by reaching out to Demo- annual cost-of-living adjustments, policy approaches of both Presidents ture bonds. Fourth, spend serious lag. The 1986 tax reform, for in-
crats, particularly the 25 senators up and increasing payroll taxes. In the Reagan and Clinton supported money to modernize the countrys stance, happened on Reagans watch
for re-election next year, to propose 1990s, President Clinton and Republi- stronger rates of business invest- major infrastructure. but arguably laid the foundation for
a bipartisan fiscal plan. can Speaker Newt Gingrich reformed ment, as well as public invest- The president should offer Demo- the Clinton economy. Both parties
That could help Mr. Trump win welfare and passed a budget that cut ments to modernize infrastructure, crats some sweeteners that would be gained politically, but the big winner
back support from independents, the tax rate on capital gains. The broaden access to education, and tough to vote against. One might be was the American people.
who jumped ship after he accused budget ended up in surplus. support basic research and develop- a new program giving disadvantaged
his predecessor of wiretapping Both presidents achieved eco- ment. They also pushed measures families vouchers to help them relo- Mr. Smick, author of The Great
Trump Toweras if President nomic success. From 1983-88, aver- to liberalize trade and foreign direct cate for better job opportunities. Equalizer: How Main Street Capital-
Obama had donned earphones in a age growth in the countrys gross do- investment. Another might be a modest, incre- ism Can Create an Economy for Ev-
van across the street. Mr. Trumps mestic product topped 4.5% a year. What was the result? House- mental increase to the minimum eryone (PublicAffairs, 2017), was
approval rating has fallen from From 1993-2000 the economy grew holds of virtually every type, Mr. wage, carefully designed to avoid Rep. Jack Kemps chief of staff
46% after his inauguration to 41% by an average of nearly 4% a year. Shapiro writes, experienced large, threatening small-business solvency. (1979-84).

The Other Islamic State: Erdogans Vision for Turkey


By Daniel Pipes already lord of all he sees for as long to a legislative triviality, why does war with the Kurds in July 2015 as a tarnished his image by registering as

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as he wants, whether through demo- he obsessively chase them? Perhaps gambit to win support of a national- a foreign agent representing Tur-
his Sunday, millions of Turks cratic means or by fixing election re- as added insurance against ever be- ist party in Parliament, a move that keys interests in 2016.
will vote to endorse or reject sults. If the referendum passes, it ing hauled into court for his illegal has already had dreadful human con- Mr. Erdogans narcissism in-
constitutional amendments will merely prettify that reality. actions. Perhaps to assure a hand- sequences. creases the price of dictatorship by
passed in January by Turkeys Par- Consider the nature of Mr. Erdo- picked successor the power to con- causing him to make unwarranted
liament. An opinion piece published gans power. The obsequious prime tinue his program. Perhaps to flatter mistakes. A once cautious and calcu-
by the German news agency minister, Binali Yildirim, tirelessly ad- his vanity. The strongman wants to lating leader now pursues baubles
Deutsche Welle explains that the vocates for the constitutional changes Whatever the source of Mr. Erdo- that only generate enmities. This has
crucial amendments give all the that will eliminate his own office, his- gans compulsion, it greatly damages reverse the countrys damaged the economic growth that
power to one person, with almost torically the most powerful in the Turkeys standing in the world. secularization and cement fueled his popularity. Mr. Erdogan
no accountability, eliminating country. Criticism of the almighty When his aides were not permitted has turned into a self-parody, with
what is left of democracy in Turkey. president can get even a child thrown to rally Turks living in Germany for his authoritarian rule. his 1,100-room palace and Ruritanian
Virtually all observers agree that if into jail. The most tenuous connec- the constitutional changes, he ac- honor guard.
the referendum passes, Turkey will tion to a (possibly staged) coup dtat cused the Germans of employing Where will it end? The president
be transformed into an authoritar- attempt last July means losing ones Nazi measures. He also compared This insistence on doing things has two apparent objectives. First,
ian state. jobor worse. The state routinely the Netherlands to a banana republic his way fits a pattern. Mr. Erdogan Mr. Erdogan seeks to reverse Kemal
I, along with a few others, dis- jails journalists on the bogus charge after Turkish ministers were pre- could have won visa-free travel for Atatrks westernizing reforms to re-
agree. Turkish President Recep of terrorism, and truly independent vented from speaking in Rotterdam. Turks traveling to Europe, but he re- institute the Ottoman Empires Is-
Tayyip Erdogan years ago arrogated publications are shuttered. This souring of relations has already fused a meaningless change to the lamic ways. Second, he wants to ele-
all the powers that the constitutional If Mr. Erdogan has no need for led to a breakdown in military ties definition of terrorism in Turkeys vate himself to the grand, ancient
changes would bestow on him. He is constitutional changes, which amount with Germany. criminal code. He harms relations Islamic position of caliph, an espe-
Implicitly threatening street at- with Washington by making the ex- cially vivid prospect since Islamic
tacks on Europeans hardly helped tradition of Turkish cleric Fethullah State resurrected this long-moribund
Mr. Erdogans international standing, Gulen a personal fixation. He poten- position in 2014.
PUBLISHED SINCE 1889 BY DOW JONES & COMPANY nor did allowing one of his close al- tially disrupts relations with 35 Those two ambitions could meld
Rupert Murdoch Robert Thomson lies to call for Turkey to develop its countries by setting his intelligence together exactly 100 years after
Executive Chairman, News Corp Chief Executive Officer, News Corp own nuclear weapons. More damag- agencies to spy on pro-Gulen Turks. Atatrk abolished the caliphate, ei-
Gerard Baker William Lewis ing yet, the leader restarted a civil Former Trump adviser Mike Flynn ther on March 10, 2021 (by the Is-
Editor in Chief Chief Executive Officer and Publisher lamic calendar), or March 4, 2024
Matthew J. Murray DOW JONES MANAGEMENT: (by the Christian calendar). Either of

Notable & Quotable: Fairness


Deputy Editor in Chief Mark Musgrave, Chief People Officer; these dates offers a perfect occasion
Edward Roussel, Innovation & Communications;
DEPUTY MANAGING EDITORS:
Anna Sedgley, Chief Operating Officer & CFO;
for Mr. Erdogan to undo the handi-
Michael W. Miller, Senior Deputy;
Thorold Barker, Europe; Paul Beckett, Katie Vanneck-Smith, President work of the secular Atatrk and de-
Washington; Andrew Dowell, Asia; OPERATING EXECUTIVES: From the abstract of Why People Rather, they are bothered by some- clare himself caliph of all Muslims.
Christine Glancey, Operations; Ramin Beheshti, Product & Technology; Prefer Unequal Societies, published thing that is often confounded with in- No one inside Turkey can effec-
Jennifer J. Hicks, Digital; Jason P. Conti, General Counsel;
Neal Lipschutz, Standards; Alex Martin, News; Frank Filippo, Print Products & Services; in Nature Human Behavior, April 7: equality: economic unfairness. Draw- tively resist Mr. Erdogans enormous
Shazna Nessa, Visuals; Ann Podd, Initiatives; Steve Grycuk, Customer Service; ing upon laboratory studies, cross- ambitions. This leaves him free to
Matthew Rose, Enterprise; Kristin Heitmann, Transformation; There is immense concern about cultural research, and experiments continue in his erratic ways, stirring
Stephen Wisnefski, Professional News Nancy McNeill, Advertising & Corporate Sales;
Jonathan Wright, International economic inequality, both among the with babies and young children, we ar- trouble at home and abroad. That is,
Paul A. Gigot, Editor of the Editorial Page;
Daniel Henninger, Deputy Editor, Editorial Page
DJ Media Group: scholarly community and in the gen- gue that humans naturally favour fair unless he one day trips, likely over
Almar Latour, Publisher; eral public. . . . However, when people distributions, not equal ones, and that an external crisis. Meantime, Turks
WALL STREET JOURNAL MANAGEMENT: Kenneth Breen, Commercial
Suzi Watford, Marketing and Circulation; Professional Information Business: are asked about the ideal distribution when fairness and equality clash, peo- and millions of others will pay an in-
Joseph B. Vincent, Operations; Christopher Lloyd, Head; of wealth in their country, they actu- ple prefer fair inequality over unfair creasing price for his vainglorious
Larry L. Hoffman, Production Ingrid Verschuren, Deputy Head ally prefer unequal societies. . . . De- equality. Both psychological research rule.
EDITORIAL AND CORPORATE HEADQUARTERS: spite appearances to the contrary, and decisions by policymakers would
1211 Avenue of the Americas, New York, N.Y., 10036 there is no evidence that people are benefit from more clearly distinguish- Mr. Pipes is president of the Mid-
Telephone 1-800-DOWJONES
bothered by economic inequality itself. ing inequality from unfairness. dle East Forum.
A16 | Friday, April 14, 2017 THE WALL STREET JOURNAL.

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BUSINESS & FINANCE


2017 Dow Jones & Company. All Rights Reserved. * * * ** THE WALL STREET JOURNAL. Friday, April 14, 2017 | B1

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United Victim
Readies Suit,
Hits Airlines
Attorney for doctor day from a Chicago hospital,
he said.
dragged off flight At the news conference, Dr.
says industry bullies Daos daughter, Crystal Dao
Pepper, described Dr. Dao as a
its passengers loving father of five and a
proud Vietnamese immigrant
BY ANDREW TANGEL who came to the U.S. amid the
AND PATRICK MCGROARTY fall of South Vietnam in 1975.
Mr. Demetrio said Dr. Dao told
DAVID PAUL MORRIS/BLOOMBERG

CHICAGOAn attorney for him his treatment Sunday was


the passenger dragged off a worse than that escape.
United Airlines flight this He said that being dragged
week said his client was pre- down the aisle was more hor-
paring to sue and that his rifying, Mr. Demetrio said of
treatment by United reflected Dr. Dao.
the plight of many airline cus- In the days since the event,
tomers across the U.S. Mr. Demetrio said he has re-
Whole Foods is battling weak sales, and its stock has lost nearly half its value since peaking in 2013. Above, a store in Oakland, Calif. For a long time, airlines ceived calls from passengers
United, in particularhave as well as from current and

Sharing a Recipe With Whole Foods


bullied us, said attorney former United employees
Thomas Demetrio, who is rep- hundredsliterally hun-
resenting the passenger, David dredsof tales of woe, of mis-
Dao, a 69-year-old physician. treatment by United.
Cookbook author joins with Jana Partners to press changes at grocery chain You dont treat the people
who help make you the corpo-
Many in public life, includ-
ing President Donald Trump,
rate entity you are like Dr. Dao have called this week for air-
BY HEATHER HADDON chain and pressed it to ex- in a statement. was treated. lines to reconsider the amount
AND DAVID BENOIT plore a possible sale. Jana hasnt met with the Mr. Demetrio told reporters and manner with which they
When Jana called last companys management yet. at a news conference here that compensate passengers to give
Whole Foods Market Inc. month, Mr. Bittman initially It loaded up in stock in the Mr. Dao had suffered a concus- up their seats. The U.S. De-
was looking for ways to didnt see himself playing a past month, spending about sion, broken nose and two lost partment of Transportation in-
boost its flagging sales when role in the financial opera- $706 million to become the teeth, and would require re- creased the amount due to
Mark Bittman showed up last tions of a major company but second biggest investor in constructive surgery. Mr. Dao passengers bumped involun-
year at its Austin, Texas, felt strongly that Whole the company, with an 8.3% was discharged late Wednes- Please see UNITED page B2
NIKKI KAHN/GETTY IMAGES

headquarters to make an un- Foods had strayed from be- stake.


solicited pitch. ing an innovator in food re- The industry experts who
The food journalist and
best-selling cookbook author
offered to help the company
tailing and needed to
strengthen its brand, accord-
ing to people familiar with
have joined Janas campaign,
including Mr. Bittman, also
bought shares, bringing the
Options Traders Brace
sharpen its focus on its pre-
pared-foods business.
Whole Foods didnt bite.
his thinking.
Janas picks offer insight
into its approach to Whole Mark Bittman spent $25,000
groups total stake to 8.8%.
Whole Foods stock is up
more than 9% this week.
For Fight in Congress
Last month, an activist inves- Foods, whose stock has lost to purchase Whole Foods stock. The fund has proposed a BY GUNJAN BANERJI
tor with a big chunk of the nearly half of its value since slate of board candidates in- Shutdown Risk
companys stock did. peaking in 2013. The hedge foodie crowd. cluding Glenn Murphy, a for- Volatility watchers are cir- Investors are hedging ahead of the
Mr. Bittman is the most fund, run by 58-year-old We are confident in the mer Gap Inc. chief executive, cling a new date on their cal- French election and a potential
recognizable name in a group yoga and health-food devotee actions we are taking to po- Thomas Tad Dickson, the endars: April 28. U.S. government shutdown.
of food and retail experts Barry Rosenstein, wants sition the company for con- former chief executive of That is when the U.S. gov-
Jana Partners LLC has as- Whole Foods to learn opera- tinued success, and we re- Harris Teeter Supermarkets, ernments current funding Prices of monthly VIX futures
sembled as advisers to its tional lessons from national main open to ideas to create and longtime industry ana- ends. Lawmakers need to pass 17
campaign to revamp Whole chains while staying true to further value for our share- lyst Meredith Adler. a new spending bill by then or
Foods. On Monday, the hedge its mission of selling high- holders and all our stake- Mr. Bittman and Diane Di- they risk triggering a partial
fund disclosed it had quality organic and natural holders, Whole Foods Chief etz, the former chief market- government shutdown.
16
amassed a large stake in the products that appeal to the Executive John Mackey said Please see FOODS page B2 The CBOE Volatility Index,
or VIX, has jumped 29% since
April 6 to its highest level

Airwaves Auction Signals a Shift


since November. The volatility 15
measure is based on options
prices and tends to move in the
opposite direction of stocks.
T-Mobile US Inc., Dish Net- Verizon Communications ogy to improve coverage than service to its home internet Investors can use options to 14 Expiration dates

work Corp. and Comcast Inc. and AT&T Inc., the na- buy fresh airwaves. customers, and the service hedge their portfolios or place A M J J A S O N
Corp. were among the top tions largest wireless carriers AT&T said in 2014 that it runs off the back of Verizons directional bets on stocks. 2017
buyers in the U.S. govern- by subscribers, largely sat out planned to spend at least $9 network. Dish has been amass- Options traders are fixated Source: FactSet
the auction, which was run by billion in the auction, but it ing a trove of wireless air- on index contracts that expire THE WALL STREET JOURNAL.
the Federal Communications recently won a government waves for years that it has yet near April 28 and are driving
By Ryan Knutson, Commission and began last contract to build a wireless to use. up prices of shorter-term fu- House Republicans failure
Drew FitzGerald year. AT&T offered $910 mil- network for public safety that A company associated with tures tied to the VIX. last month to replace the Af-
and Shalini lion for the licenses, while Ve- comes with a large swath of billionaire Michael Dell Normally, with Congress in fordable Care Act has gener-
Ramachandran rizon declined to bid. airwaves. It has also indicated brought in $440.7 million by recess and during a holiday ated questions over whether
Verizons absence, and the interest in other sectors like selling the broadcast licenses week, you dont see volatility lawmakers will be able to reach
ments wireless airwaves auc- strong showing from compa- entertainment with its $85 bil- of 10 stations. Mr. Dells in- this firm, said Amy Wu Silver- an agreement. At the forefront
tion, which drew $19.8 billion nies like Comcast that dont lion deal to acquire media vestment arm, MSD Capital LP, man, an RBC Capital Markets of the potential standoff will be
in bids. currently operate cellular net- company Time Warner Inc. An created OTA Broadcasting LLC equity derivatives strategist. President Donald Trumps
The results, announced works, is a sign of the chang- AT&T spokesman declined to in 2011, spending about $90 Concerns over whether promises on tax overhauls, in-
Thursday, showed that T-Mo- ing telecommunications land- comment on the auction. million to scoop up two dozen Congress will be able to agree frastructure and spending.
bile was the biggest spender scape. Verizon has said it It wasnt immediately clear local TV stations. on a spending plan and who As of Thursday, there are
at $8 billion. It was followed believes wireless airwaves, what Comcast and Dish plan The auctions conclusion will win the French presiden- over 550,000 bearish put op-
by Dish, which spent $6.2 bil- known as spectrum, have be- to do with the airwaves. Com- means the telecom sector can tial election this month have tionsbets that prices will
lion, and Comcast with $1.7 come too expensive, and it cast said this month that it resume deal talks after April caused the futures curve for fallon the S&P 500 index that
billion. would rather invest in technol- would start selling cellphone Please see AUCTION page B2 the VIX to invert, analysts say, expire on April 28, Trade Alert
with April contracts priced data show. That is high for
higher than May ones. open interest on puts that ex-
HEARD ON THE STREET | Justin Lahart The shape of the curve is pire on this date, according to
usually upward sloping, with Trade Alert analyst Fred Ruffy.

Beware the Coming Profit Squeeze


contracts getting pricier as In contrast, stocks are
market participants see taking a more wait-and-see
heightened uncertainty further attitude versus the options
out in time. When the VIX fu- markets, which are a little
tures curve inverts, it is a po- more nervous, said Maneesh
Companies That has set up a nice tential warning signal that in- Deshpande, global head of eq-
may not give comparison for the first vestors could see violent price uity derivatives research at
up fat profit quarter, and is a big factor swings in the near term. Barclays.
margins with- behind the expected strength
out a fight. Recessions in S&P profits. But when it
That could
soon pose a problem for the
economy.
comes to just multinationals
domestic businesses, and the
businesses of companies that
INSIDE
First-quarter results are only operate in the U.S.,
starting to roll in and expec- earnings growth probably
tations are running high. An- hasnt seen so much oomph.
alysts polled by Thomson The economy continues to
Reuters I/B/E/S estimate that grow slowly, with economists
earnings at companies in the now estimating gross domes-
S&P 500 will be up 10% from tic product grew at just a
a year earlier, marking the 1.2% annual rate in the first
strongest profit growth since quarter. Low inflation shows
1955 60 70 80 90 2000 10
2011. that companies still dont
Despite the gains, inves- have much pricing power.
tors should remember that But a tightening job market
the earnings of the global
companies in the S&P dont
with revenue climbing slowly
and rising labor costs threat-
combination of falling com-
modity prices, a rising dollar,
is pushing labor costs higher,
with last Fridays jobs report
GURU HELPS THE DONGLE
always reflect what is hap- ening to bite into the bottom strained emerging markets showing the Labor Depart- INSTAGRAM THAT CAN HACK
pening in the American
economy.
line.
The first quarter of last
and a slowing Chinese econ-
omy weighing on the over-
ments measure of aggregate
wages up 4.1% in March from
GROW UP YOUR CAR
The domestic profit pic- year was rough for the seas operations of U.S. multi- a year earlier. It all adds up
ture is more challenging, global economy, with the nationals. Please see HEARD page B2 SOCIAL MEDIA, B4 CYBERSECURITY, B2
B2 | Friday, April 14, 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
Abbott Laboratories...B3
H
Quam Asset
Q
Hacking
Of Moving
Hilcorp Energy ............ B2
AC Milan ..................... B2 Management...........B11
I
Airbus..........................B3 R
Instagram....................B4

Cars Draws
Alaska Air Group......B11 Rossoneri Sport
Iran Air........................B3
Alphabet......................B4 Investment Lux........B2
Apple.........................B12 J
S

Concern
Arconic ........................ B6 Jana Partners ............. B1
Samsung Electronics..B4
Arena Investors..........B2 J.P. Morgan
SkyBridge Capital.....B11
Argus Cyber Security.B2 Chase..........A1,B11,B12
Snap.............................B4
B L BY CHESTER DAWSON
St. Jude Medical.........B2
Boeing ......................... B3 Leonardo......................B3

MICHELLE KANAAR FOR THE WALL STREET JOURNAL


T
Bundesnetzagentur....A1 LVMH.........................B12 An Israeli cybersecurity firm
Tencent Holdings......B11 is raising concerns about hack-
C-D M
T-Mobile......................B1 ers taking control of moving
Citigroup..............A1,B12 Muddy Waters Capital Trinity Broadcasting cars, remotely shutting down
Comcast.......................B1 .....................................B3 Network....................B2 an engine with the help of a
ConocoPhillips.............B2 N U smartphone app, a Bluetooth
Crispr Therapeutics....B3 connection and a type of device
NextEra Energy...........B6 Uber Technologies ...... B4
Dish Network..............B1 commonly plugged into ports
Nintendo......................B2 UniCredit.....................A2
E located under dashboards.
O United Airlines............B1 Argus Cyber Security Ltd.
Elliott V
Odebrecht....................A5 said Thursday it was able to
Management.......B2,B6
Oncor Electric Volkswagen.................B3 use a so-called dongle, a de-
Energy Future
Delivery....................B6 vice often installed by insur-
Holdings...................B6 W
Jana wants Whole Foods to absorb national chains operational lessons while staying true to its mission. ance companies to monitor
F P Walt Disney..............B12 driving patterns or by owners

FOODS how in upscale food retail healthy eating for decades wanting in-vehicle Wi-Fi, to
Facebook..............B4,B12 Petrobras .................... A5 Wells Fargo ......... A1,B12
Fininvest ..................... B2 Prada ......................... B12 Whole Foods Market..B1 and e-commerce. Kroger is and knows Mr. Mackey per- crack into a vehicles internal
viewed as a growing threat sonally. He spent $25,000 on communication system. The

INDEX TO PEOPLE Continued from the prior page


ing officer of Safeway Inc.,
to Whole Foods.
Ms. Adler, a recently re-
tired Barclays analyst who
Whole Foods stock, and Jana
is paying him $90,000 for his
consulting services, accord-
firm, well known in automo-
tive circles, triggered a signal
meant to disable the fuel
B Giancarlo, J. McDonald, Jim..........B11 are serving as consultants covered Whole Foods and ing a regulatory filing. pump, something that nor-
Baumohl, Bernard ...... A2 Christopher.............B11 McGillian, Gene.........B12 but could later be nominated other retailers for decades, After stepping away from mally would happen only after
Golan, Stephen...........B2 to the board. If the campaign now serves as a board mem- his role as a columnist for a collision.
Behnam, Russ...........B11 Q
Block, Michael...........B12 H goes all the way to a share- ber to food distributor Per- the New York Times in 2015, Argus didnt disclose the
Quintenz, Brian.........B11
Bowen, Sharon..........B11 Handelman, Justine ... A4 holder vote, Jana may add formance Food Group Co. In Mr. Bittman dabbled in the model of car it hacked, noting
S
Brummer, Chris.........B11 Hou Tao.......................B6 new candidates that havent November, Barclays analysts business side of food at ve- most cars on the road have a
Huang Guofeng...........B6 Schwartz, Rob...........B11 been named yet, according to published a detailed plan to gan meal-kit service Purple diagnostic port designed for a
C
Hunter, Constance......A2 Shalev, Ami.................B2 a person familiar with its overhaul Whole Foods, call- Carrot. He left that Massa- dongle device. The breach is
Charpentier, Sullivan, ChristopherB10
Emmanuelle..............B3 K plans. ing out many of the same is- chusetts firm after about the latest in a series of high-
Summers, Lawrence...B4 Mr. Murphy is known for sues Jana flagged in its regu- nine months. profile hacks, including an in-
Cheung, Eddie...........B10 Kleinfeld, Klaus .......... B6
T being well-versed in the fun- latory filing this week. Since then, Mr. Bittman, cident two years ago staged by
D Koh, D.J.......................B4
Tursi, Carlo..................B4 damentals of retail. He spent We believe a sense of ur- 67 years old, of Cold Spring, two security researchers who
Demetrio, Thomas......B1 L
W $44 million buying Whole gency is lacking and speed is N.Y., has focused on writing controlled a Jeep Cherokee via
Dimon, James...........B12 Lake, Marianne.........B12 Foods stock, the most of the of the essence in order to columns for various publica- a wireless internet connection.
F-G Levine, Marne.............B4 Warne, Kate..............B11
group. Mr. Dickson ran salvage this once best-in- tions and revising his 2007 Cars are increasingly con-
Likai Gu.......................B4 Whetstone, Rachel.....B4
Fields, Mark................B2 Southeast grocery chain Har- class retailer, the analysts cookbook How to Cook Ev- nected to external communica-
Fratantoni, Michael....A2 M Z ris Teeter before its sale to wrote. erything Vegetarian. He tions, prompting computer ex-
Galula, Yaron...............B2 McCormick, Mark......B10 Zinke, Ryan.................A3 Kroger Co. and is credited Mr. Bittman isnt an ex- joined the Mailman School of perts to exploit holes in
with giving the nations larg- pert in the grocery business, Public Health at Columbia firewalls installed by auto

BUSINESS WATCH
est supermarket chain know- but he has written about University last fall. makers to separate media fea-
tures from more critical func-
tions, such as engines, trans-

NINTENDO
New Game Console
Investment Lux, the investment
vehicle controlled by Chinese in-
vestor Yonghong Li. The deal val-
AUCTION The Bids Are In
Big spenders in the FCC auction:
merge with, a wireless carrier,
which could put the spectrum
to use faster. In February, Dish
Chief Executive Charlie Ergen
missions or brakes.
These firewalls are really
new and immature in their se-
curity measures, Ami Shalev,
T-Mobile
Sells Strongly in U.S. ues the soccer team at 740 Continued from the prior page
$8 billion
said he expected to see merger Argus research team leader,
million ($785 million), which in- 27, because participants were talks pick up after the auction. said in an interview.
Nintendo Co. said its new cludes the 220 million clubs prohibited from such discus- Dish Selling the airwaves Dish Tesla Inc. and other auto
game console got off to a roar- debt. sions as a safeguard against 6.2 acquired in this years auction makers have responded to
ing start in the U.S. during its The deal nearly fell through bidding collusion. Many ana- might be more complicated, hacks by bolstering security.
launch month of March, surpris- when tighter capital controls in- lysts think T-Mobile could be Comcast however. The FCC sale in- Fiat Chrysler Automobiles NV,
ing analysts and investors who troduced by Beijing made it an attractive merger candidate 1.7 cluded one tier that could be the maker of the Jeep hacked
worried that pricing would hurt harder for Chinese investors to for another wireless carrier Channel 51 bought by anyone and a re- in 2015, recalled 1.4 million ve-
sales. transfer the money out of the like Sprint Corp. or a cable 1 serve tier of low-band air- hicles. Car companies have
Nintendo, citing private mar- country. In March, U.S. hedge provider like Comcast. waves was set aside for com- launched programs encourag-
keting research firm NPD Group, fund Elliott Management Corp. The FCC said more than $10 AT&T panies that didnt already own ing hackers to help identify
said Friday that more than and other U.S. partners including billion would go to 175 TV sta- 910 million a significant amount of them. vulnerabilities.
906,000 Switch consoles were Arena Investors agreed to pro- tions that are selling licenses. Note: Sprint and Verizon didn't buy any spec-
The rule largely prevented While dongles are made by
sold in the U.S. in March. The vide part of the financing in or- Two New Jersey public broad- trum. Channel 51 is a consortium of investors. AT&T and Verizon from bid- several companies for various
handheld-hybrid system was der to allow Mr. Li to proceed casting stations sold licenses Source: Federal Communications Commission ding on the reserve tier and purposes, Arguss latest hack-
launched globally on March 3. with the purchase. for $332 million. WWTO-TV, a THE WALL STREET JOURNAL. restricts most sales by the ing experiment used a device
Nintendos previous record Manuela Mesco Chicago religious station winning bidders to AT&T or from German auto supplier
holder for launch-month sales owned by Trinity Broadcast- which sold $313 million. Verizon. Robert Bosch GmbH called
in the U.S. was the GameCube, CONOCOPHILLIPS ing Network, went for $304 Dish, which spent more Even though Verizon didnt Drivelog Connect, sold in Eu-
with more than 660,000 units million. than $10 billion in the previ- buy any airwaves, the com- rope for about $75. The device
taken home in November 2001. Hilcorp Unit to Buy Other big sellers were 21st ous auction in 2015, must start pany said it was confident in collects vehicle data and sends
By comparison, Nintendos San Juan Basin Assets Century Fox Inc., which sold building its network soon or its network position. it to a smartphone via a Blue-
most popular system, the Wii, $350 million of licenses, and face FCC penalties. One option Thomas Gryta tooth connection, alerting
saw 470,000 units sold in No- ConocoPhillips said Thursday Sinclair Broadcast Group Inc., is for it to sell airwaves to, or contributed to this article. owners to maintenance issues
vember 2006, the company that it has reached a roughly $3 and engine performance.
said. The U.S. is Nintendos billion deal to sell its assets in Bluetooth-enabled dongles,
largest global market; it col- the San Juan Basin in the U.S. which can also provide a Wi-Fi
(L TO R) SCOTT OLSON/GETTY IMAGES; KAMIL KRZACZYNSKI/REUTERS

lects about 40% of its annual Southwest. connection, are a potential


revenue there. An affiliate of Hilcorp En- Trojan horse for any car built
Takashi Mochizuki ergy Co. agreed to pay $2.7 bil- since 1996. That is when diag-
lion in cash for the assets in nostic access points, known as
AC MILAN addition to a contingent pay- OBD-II ports and usually lo-
ment of up to $300 million cated by the steering column,
Silvio Berlusconi payable over six years. became mandatory equipment
Sells Soccer Club ConocoPhillips, one of the on automobiles.
largest U.S. shale producers, has The market for connected-
Italys former Prime Minister been shedding assets in an ef- car technology using diagnos-
Silvio Berlusconi completed the fort to pay down debt and shore tic ports is expected to grow to
sale of his soccer club AC Milan up its balance sheet. Stabilizing $1.6 billion by 2020, up from
to a consortium including a Chi- oil prices have powered a flurry $160 million in 2013, according
nese investor and a U.S. hedge of deals across the industry in to San Antonio-based market
fund, bringing to a close his 30- recent months. research firm Frost Sullivan.
year ownership of one of Europes The Houston-based company Insurers use of dongles alone
most prominent sports teams. said the assets were valued at $5.9 is expected to reach 27 million
In a statement Thursday, Fin- billion at the end of last year, and vehicles by the end of the de-
invest SpA, the holding company that 2016 production was 124,000 Attorney Thomas Demetrio is representing Dr. David Dao. Crystal Dao Pepper, Dr. Daos daughter. cade, Ptolemus Consulting
controlled by the Berlusconi fam- barrels of oil equivalent a day, the Group estimates.
ily, said it has completed the sale
of AC Milan to Rossoneri Sport
bulk of which was natural gas.
Imani Moise
UNITED what we as a society say pas-
sengers are entitled to, he
said.
Airlines for America, the in-
Inc. didnt respond to a re-
quest for comment.
Mr. Demetrio is a Chicago
trial lawyer whose firm, Cor-
Argus said the hack, exe-
cuted in Tel Aviv in February
in a controlled environment,
could be replicated on other

HEARD willingly. But trying to pre-


serve profits in the face of
rising labor costs by cutting
back on hiring and spending
Continued from the prior page
tarily in 2011, but also set a
ceiling for the maximum pay-
out airlines offer at $1,350.
dustrys trade group, sug-
gested carriers dont want the
rules changed in light of
Uniteds mishap. We continue
boy & Demetrio, says he has
notched more than $1 billion
in legal settlements and never
lost an appeal. His cases have
models using the Bosch tool.
We estimate we can do that
on any car, said Yaron Galula,
Arguss chief technology offi-
Continued from the prior page ends up hurting demand, Mr. Demetrio said United to caution against taking un- involved medical negligence, cer and co-founder.
to increasing pressure on which makes the profit prob- gate agents offered Dr. Dao necessary regulatory actions, aviation crashes and concus-
profit margins. lem worse. A vicious cycle $800 in compensation to give which could have unintended sions suffered by professional
Indeed, one measure of ensues. up his seat Sunday evening on consequences for the 2.2. mil- football players. Boon-Dongle
margins within the U.S.do- There are things that a flight from Chicagos OHare On Thursday, United again Palm-sized gadgets called
mestic after-tax profits as a could disrupt this story: If International Airport to Louis- apologized to Dr. Dao and said dongles plug into a standard
share of gross value added at President Donald Trump and ville, Ky. it would review its training
nonfinancial companiesbe- Congress can hammer out a United said it needed the
An airline industry programs and policies for han-
portusually located under the
dashboardon vehicles made
gan slipping over two years corporate tax cut, for exam- seats of Dr. Dao and three ad- trade group doesnt dling over-full flights by April since 1996.
ago. That matters, argue ple, margins would at least ditional passengers on United 30.
economists at Cornerstone temporarily improve, fore- Express Flight 3411 for crew
want rules changed This horrible situation has Data can be transmitted from
Macro, because when domes- stalling the squeeze. If eco- members who needed to be in after Uniteds mishap. provided a harsh learning ex- the car's engine to a smartphone
tic profit margins roll over it nomic growth picks up, reve- Louisville for a Monday flight perience from which we will app via Bluetooth wireless
is often a sign the economic nue would, too, so more to Newark, N.J. take immediate, concrete ac- technology.
expansion is getting old. To money would fall to the bot- Dr. Dao refused. Three po- tion, the company said.
judge from where margins tom line. lice officers from Chicagos lion customers who take to the United didnt directly address
peaked during the past 10 And maybe, since margins Aviation Department hauled skies every day, said spokes- Dr. Daos potential lawsuit.
cycles, the most recent peak are still quite wide, histori- him off, dazed and bloodied. man Vaughn Jennings. Dr. Daos wife, who is also a
would suggest that the ex- cally speaking, management The aviation department has Southwest Airlines Co. said doctor, was with him on Flight
pansion is about three-quar- teams will allow them to fall placed three officers involved it isnt rethinking its over- 3411 but wasnt bumped. She
ters of the way to its finish. slightly without too much in the incident on leave and is booking policies. JetBlue Air- was instead told to leave after
That would suggest a reces- grumbling. Ultimately, that conducting its own review. ways Corp. said it doesnt Dr. Dao was removed, said Ste-
sion around the third quarter might be the optimal out- Mr. Demetrio said Dr. Dao oversell flights. Delta Air Lines phen Golan, another attorney
of next year. come for the companies, for would likely soon file a lawsuit Inc. Chief Executive Ed Bastian for Dr. Dao. Their daughter But it can be hacked to gain
Narrowing profit margins their investors and for their against the airline and the city said Wednesday that over- said her father was returning access to a vehicles internal
present a risk to the econ- workers. But people dont al- of Chicago. booking is a valid tool when from vacation in California. systems.
omy, and companies may not ways do what is best for Were going to be vocal managed well. A spokesman Imani Moise
give up fat profit margins them. about the whole subject of for American Airlines Group contributed to this article. THE WALL STREET JOURNAL.
THE WALL STREET JOURNAL. * * Friday, April 14, 2017 | B3

BUSINESS NEWS

Abbott Receives Iran Signs Deal to Pay as Much as $1 Billion to Beef Up Airliner Fleet

FDA Warning
The companys spokesman said in an email.
Analysts said the FDAs let-
approach to problems ter, which describes the com-
in heart devices was pany overlooking or omitting
early signals of product de-
flawed, agency says fects or vulnerabilities, could
hurt Abbotts reputation
BY JOSEPH WALKER among cardiologists.
The letter requires Abbott
The U.S. Food and Drug Ad- to provide a written descrip-
ministration issued a blister- tion of the steps it has taken
ing criticism of Abbott Labo- to correct the violations iden-
ratories for failing to properly tified by FDA inspectors, and
investigate and resolve risks an explanation of how it will
related to its implanted heart prevent similar violations
devices, including cybersecur- from occurring in the future. If
ity threats and a battery mal- Abbott fails to correct the vio-
function linked to two patient lations, the FDA could seek to
deaths. implement an injunction, con-

MAXIM SHEMETOV/REUTERS
The FDA made the criti- duct a seizure and issue mone-
cisms in a warning letter sent tary fines. The FDA said it
to Abbott on Wednesday, fol- wouldnt make any approvals
lowing an inspection of the related to the heart devices
medical-device makers facili- until the violations are cor-
ties in Sylmar, Calif., in Febru- rected.
ary. The letter addresses two re-
The letter relates to pace- cent controversies involving
makers and defibrillators that St. Judes devices: a report by LONDONIrans effort to up- joint venture between Toulouse- pact or otherwise discourage planes after several decades of
Abbott acquired earlier this Muddy Waters Capital LLC grade its airliner fleet has taken based Airbus and Leonardo, It- closer business ties. sanctions made it difficult for
year in its $25 billion takeover last year that St. Judes pace- another step with a deal valued alys biggest aerospace and de- Aircraft contracts, including Iranian carriers to buy new jets
of St. Jude Medical Inc. makers and defibrillators were at up to $1 billion to buy planes fense company. those involving Boeing Co., the and aircraft parts.
All of the issues described vulnerable to hacking, and the from a joint venture of Airbus European and Asian firms worlds No. 1 plane maker, are Boeing this month agreed to
in the letter occurred before companys recall of certain of SE and Leonardo SpA. have flocked into Iran after the among the highest-profile deals sell up to 60 single-aisle planes
Abbott completed the acquisi- defibrillators last year because Aircraft maker ATR, which is removal of economic sanctions between Western companies to a second Iranian airline, Iran
tion in January, an Abbott of a battery malfunction. based in Toulouse, France, said on the country. American com- and Iran after foreign powers Aseman Airlines, after last year
spokesman said. In October 2016, St. Jude Iran Air had signed a firm order panies have largely held back, lifted many sanctions on Tehran finalizing a $16.6 billion deal with
We take these matters se- warned that about 250,000 of for 20 ATR 72-600 regional unsure about whether President last year in exchange for restric- flag carrier Iran Air for 80
riously, continue to make its heart defibrillators in the planes with options for 20 more. Donald Trump, a sharp critic of tions on its nuclear program. planes. The Chicago-based plane
progress on our corrective ac- U.S. could stop working be- Deliveries could begin within the nuclear deal with the coun- Iran is an attractive market maker still is awaiting final ap-
tions, will closely review FDAs cause of rapid battery deple- weeks and be completed next try when he was on the cam- for plane makers because of its proval from the U.S. Treasury for
warning letter, and are com- tion, and that two patient year, said the turboprop-making paign trail, would try to alter the size and large fleet of aged those sales. Robert Wall
mitted to fully addressing deaths were linked to the
FDAs concerns, an Abbott problem.

Researchers Escalate Battle for Gene-Editing Patent


BY AMY DOCKSER MARCUS other medical information. group will now appeal to the
AND JOE PALAZZOLO Some of the scientists in- FIVE THINGS Several years ago, scientists 4. Why is Crispr consid- U.S. Court of Appeals for the
volved in the Crispr-cas9 dis- learned how to reprogram an ered more useful than other Federal Circuit, a federal ap-
Tensions are escalating in pute are also inventors of An Innovation That enzyme produced by the Crispr gene editing tools? pellate court that specializes
the long-running dispute be- Crispr-cas13a diagnostic tools Has Great Promise system called Cas9 to enable Scientists say that Crispr al- in patent law.
tween two major groups over and have filed for patents on the editing of genes, not only lows scientists to make The California side could
the research and rights to that use as well. The two sys- in bacteria but also in animals, changes in many genes at the argue that the patent board
Crispr, a biological system tems use different enzymes. 1. What is Crispr? plants, and people. The findings same time, and it is fast and improperly excluded or under-
that has been adapted to eas- The events of this week Crispr stands for Clustered open up the possibility that relatively easy to use. valued evidence that other sci-
ily edit the genes of animals, highlight the tensions that can Regularly Interspaced Short someday researchers will be 5. What are some of the entists, using Drs. Doudna and
plants and people. emerge when trying to deter- Palindromic Repeats and is the able to cure genetic diseases. ethical concerns? Charpentiers work as a road
A group including the Uni- mine the source of transfor- immune system of bacteria. 3. How is Crispr used? Genetic changes made in a map, also demonstrated
versity of California, the Uni- mative ideas in science, partic- The Crispr system captures an Scientists have used Crispr living organism alter that indi- Crisprs application in human
versity of Vienna and re- ularly when scientific prestige invaders DNA and integrates it to make genetically modified vidual, but arent passed on to and animal cells around the
searcher Emmanuelle and potential financial re- into the genome of the bacteria pigs whose organs are more offspring. But changes made in time of the Broad group, ac-
Charpentier said on Wednes- wards are at stake. to fend off future attacks. compatible with humans and egg, sperm or embryos are cording to legal experts.
day that it seeks to overturn a The Broad group in an- 2. Why are scientists so may be used someday in trans- passed on, permanently altering Samarth Kulkarni, chief
patent decision related to the nouncing its new diagnostics excited about Crispr? plants. future generations. business officer at Crispr Ther-
best-known Crispr system, system specifically noted the apeutics, a company of which
Crispr-cas9. work of Jennifer Doudna, a Dr. Charpentier is a founder,
That decision by the Patent professor at University of Cali- startups seeking to use the In 2012, Dr. Doudna, along several Crispr-related patents said corresponding patents
Trial and Appeal Board pro- fornia, Berkeley who has done gene-editing system to de- with Dr. Charpentier of the Max to the Broad group in have been granted to the Cali-
tected Crispr-cas9 patents is- research in both systems, say- velop therapeutics and cures. Planck Institute for Infection 2014. The California group fornia group in the United
sued to the Broad Institute, ing the Broad groups cas13a As the dispute drags on, it is Biology in Berlin, co-wrote a asked the Patent Trial and Ap- Kingdom, and the European
Harvard University and the work is a million-fold more unclear whether the compa- seminal paper showing Crispr- peal Board to declare it the Patent Office has announced it
Massachusetts Institute of sensitive than Dr. Doudnas. nies will have to license the cas9 could cut DNA in a test sole inventor of the gene-edit- will grant the groups patent in
Technology against a chal- Dr. Doudna in emails said technology from both sides. tube, and filed for a patent for ing technology. May. He added that the Euro-
lenge by the California group. the new tool combines two Adding further legal uncer- the technology that year. The patent judges ruled pean decision adds a lot of
Separately, scientists from previously reported methods, tainty, Vilnius University in Months later, the Broad that the Broad Institutes use strength to our arguments re-
Broad, MIT and Harvard re- one by her group, and im- Lithuania received notice on group applied for a patent for of Crispr-cas9 in the cells of garding the foundational work.
ported in the journal Science proves the ability of detection Wednesday that the U.S. pat- the use of Crispr-cas9 to edit plants, animals and humans Lee McGuire, chief communi-
on Thursday that they adapted but "could be challenging to ent office plans to issue it a human and animal cells. differed from the California cations office for the Broad In-
a different Crispr system, scale commercially. broad Crispr-related patent in Tension between the two groups claims to Crispr-cas9 stitute, said in a statement,
Crispr-cas13a, to create a diag- In the case of Crispr-cas9, the U.S. that could draw chal- competing groups arose after as a gene editor regardless of Given that the facts have not
nostic tool that can detect a hundreds of millions of dollars lenges from the California the U.S. Patent and Trademark location. changed, we expect the outcome
range of viruses, bacteria and of investment have flowed into group and the Broad group. Office awarded the first of The University of California will once again be the same.

Volkswagen Ahead of Schedule


On Buybacks of Diesel Vehicles GOLFS ABOUT
BY ADRIENNE ROBERTS HAVING FUN!
Volkswagen AG has bought
back or terminated the leases
of nearly 238,000 diesel vehi-
cles from owners affected by
Replace your
the companys emissions-
cheating scheme, surpassing hard-to-hit
PATRICK T. FALLON/BLOOMBERG NEWS

the 50% milestone earlier than


it anticipated as customers re-
sponded to generous financial
irons
terms not typically associated
with a product recall.
The German auto maker of-
fered to buy back 475,000
Volkswagen two-liter diesel ve-
hicles in a program that kicked
off in November. Volkswagen
could spend up to $10.03 bil- VW has secured 30 U.S. parking lots to store diesel vehicles.
lion to buy back affected cars
and offer cash payments be- action to persuade owners to
tween $5,100 and $10,000 a
person.
The German auto fix defects, especially ones that
can prove fatal.
The German auto maker has maker has two years Volkswagen in 2015 said SPECIAL OFFER
two years to complete the buy-
back process and will eventu-
to complete the that it equipped diesel-pow-
ered cars with devices meant 7 iron
ally scrap or repair affected buyback process. to trick emissions tests, allow- Only $4999 +sh
models. Were way ahead of ing cars to spew higher-than-
schedule, said Mark McNabb, legal levels of pollutants. Offer-
a Volkswagen executive over- ing cash incentives was seen as
seeing the implementation of the same three months last a way to ensure those vehicles
the diesel-settlement program. year. Mr. McNabb estimated didnt remain in operation. More forgiving Extra distance Higher ight
He said the dollars certainly that between 20% and 30% of Mr. McNabb said the recall
help to get customers to take customers who have entered process has come with in-
the buyback earlier on in the
program.
the buyback program have
bought another Volkswagen.
credible complexities. More
than 1,000 people have been
ORDER ONLINE OR CALL
The auto maker has seen an Regulators have been frus- hired to oversee the claims
uptick in sales since it trated by the pace of many and buyback process, and wedgewoodgolf.com
launched the buyback pro- safety or quality recalls in re- nearly 30 parking lots have LEADER IN HYBRID
gram. From January to March,
sales have increased 10% to
cent years.
They have often pressed
been secured across America
so affected diesel vehicles can
T EC H N O LO GY 888.833.7371
76,290 vehicles compared with auto makers to take additional be stored.
B4 | Friday, April 14, 2017 * *** THE WALL STREET JOURNAL.

TECHNOLOGY WSJ.com/Tech

Efficiency Guru Sharpens Instagram


BY DEEPA SEETHARAMAN how we grow and how we ship with governments and re-
scale. sponds to privacy laws and
Soon after joining Insta- Ms. Levines role as operat- regulation, from fewer than a
gram as chief operating offi- ing chief to Instagrams 30- dozen people to over 100. Dur-
cer two years ago, Marne something founders echoes ing her tenure, the team also
Levine asked to see its annual another pairing: Facebook CEO assumed responsibility for
budget at a team meeting. The Mark Zuckerberg and COO how Facebook sets and en-
room was quiet until another Sheryl Sandberg, who arrived forces its content standards.
executive piped up: What do on Facebooks campus nearly a Marne is the person where
you mean the budget? decade ago to help the startup if three things are supposed to
Since the former White woo advertisers and expand get done, she does four, Ms.
House official arrived in Sili- its appeal. Sandberg says. If she says its
con Valley in early 2015, Ms. A self-described political going to get done by this date,
Levine has been helping Insta- junkie, Ms. Levine started her its that date or its ahead.
gram mature into a full- career in Washington. She The two women have long
fledged business. The photo- made some of her earliest con- been close friends. Their fami-
sharing app owned by nections at the Treasury De- lies were vacationing together
Facebook Inc. has hired hun- in Mexico in May 2015 when
dreds of employees, doubled Ms. Sandbergs husband, Sur-
its user base to 600 million veyMonkey CEO Dave Gold-
and made significant changes
Ms. Levine has berg, unexpectedly died. Ms.
to its product designed to un- skills that are Levine helped plan Mr. Gold-

JASON HENRY FOR THE WALL STREET JOURNAL


dercut rival Snap Inc.s Snap- bergs funeral.
chat. It now has a budget to
in high demand In 2014, Mr. Systrom said,
keep track of spending. in Silicon Valley. he realized he and his co-
Kevin Systrom, Instagrams founder, Mike Krieger, needed
co-founder and chief execu- help. Facebook had bought the
tive, calls Ms. Levine an effi- startup for $1 billion two years
ciency guru who has helped partment, including with Ms. earlier, when it had just 13 em-
the app avoid some of the pit- Sandberg who was working ployees. The pressure was on
falls of rapid growth. for Lawrence Summers at the for Instagram to earn money
Ms. Levine has skills that time. In January 2009, Ms. and roll out products faster,
are in high demand in Silicon Levine became Mr. Summers and the co-founders saw the
Valley, where startups often chief of staff when he was di- need for an executive to man-
struggle to get past their ado- rector of the White House Na- age the expansion. Instagram COO Marne Levine says the group needs to think carefully about how it will grow.
lescence. Uber Technologies tional Economic Council dur- Mr. Systrom asked Ms.
Inc., for instance, is seeking a ing the financial crisis. Sandberg for advice, and she comprehensive view of its lobbied Facebook executives gram estimated it would gen-
second-in-command to help Marne came over, and sud- suggested five or six potential spending for the first time. for the resources to hire more erate $200 million in revenue
founder Travis Kalanick repair denly order started to emerge candidates, including Ms. Until that point, executives Instagram-dedicated staff. over the next 12 months, but
the ride-sharing companys out of the chaos, Mr. Sum- Levine. Instagrams needs leading Instagrams various Ms. Levine also pushed to by December, the estimate
image after allegations of sex- mers says. dovetailed with Ms. Levines, teams didnt communicate expand the Instagram partner- jumped to $1 billion, according
ual harassment and the depar- At Ms. Sandbergs beckon- who was hungry for a more regularly about their spending. ships team, which manages the to a person familiar with the
ture of several top executives. ing, Ms. Levine joined Face- operational role. Some Facebook employees apps relationship with public figures. Instagram declined to
We want to be the 10x book in 2010 as vice president Once Ms. Levine moved in policy and partnerships figures to ensure that they con- comment on the figure.
company, says Ms. Levine, 46 of global public policy. In her over to Instagram at the be- were working part time at In- tinued to flock to Instagram. SunTrust analysts now pre-
years old. That means we 4 years in the job, she ex- ginning of 2015, she dove in stagram, Ms. Levine discov- Over Ms. Levines first year, dict Instagram will generate
need to think carefully about panded the policy team, which with the creation of a formal ered, which she thought was Instagrams prospects bright- about $3.5 billion in revenue
how we set up our operations, manages Facebooks relation- budget, giving the company a inefficient. She successfully ened. In October 2015, Insta- this year.

Uber Faces Regulatory Pressure in Europe Galaxys Pull


Proves Strong
Uber Technologies Inc. is car technology. Ubers com-
battling fresh regulatory prob- munications chief, Rachel BY TIMOTHY W. MARTIN
lems in Europe, overshadowing Whetstone, who came from Al- AND EUN-YOUNG JEONG
its success in restoring service phabets Google, said that she
in Taiwan after a two-month was leaving the company. SEOULPreorders for Sam-
suspension stemming from a Regulators and taxi compa- sung Electronics Co.s Galaxy
dispute with authorities there. nies in many countries argue S8 smartphone have been
that Uber is a scofflaw that stronger in the U.S. and South
By Kathy Chu, Sam steamrolls into markets while Korea than for its prior flag-
RITCHIE B. TONGO/EUROPEAN PRESSPHOTO AGENCY

Schechner and Pietro crushing local competition and ship model, the companys
Lombardi ignoring rules aimed at pro- mobile chief said, suggesting
tecting passengers and drivers. consumers are looking past
Uber has struck an agree- Uber counters that many coun- last years fiasco surrounding
ment with the Taiwan govern- tries have outdated taxi rules the Galaxy Note 7.
ment to resume ride-hailing aimed at protecting incumbent D.J. Koh, who spoke to re-
operations there through part- firms at the expense of riders. porters Thursday at an event,
nerships with car-rental com- In Europe, several court de- didnt specify the jump in pre-
panies. The San Francisco- cisions have led Uber to re- orders from last years Galaxy
based companys alliance with treat in several countriesin- S7 to the Galaxy S8, which be-
car-rental companies will allow cluding Italy in 2015from its comes available in the U.S. and
it to legally offer transporta- low-cost service called Uber- South Korea next week.
tion services in Taipei, by us- pop, which used nonprofes- Samsung said that in its
ing licensed commercial driv- Ubers Asia regional general manager Michael Brown, left, and Uber Taiwans general manager, Likai Gu sional drivers. Last year, a home market of South Korea it
ers rather than private drivers, French criminal court fined had received more than
Uber said. alleging that Uber violated Tursi, the companys general government to figure out how Uber and two executives for 728,000 preorders for the Gal-
Car-rental companies are li- competition laws. In Denmark, manager for Italy. With its new technologies can better fit running that service illegally. axy S8. I cant give the spe-
censed transportation provid- Uber said it will close Tuesday huge growth potential and un- into regulations. Uber has fought back, ap- cific numbers, but its defi-
ers in Taiwan because they of- because of new taxi regula- tapped opportunities, Italy is a Uber, valued by investors at pealing against national taxi nitely better than it was for
fer car-rental services and tions that the company said strategic market for Uber. nearly $70 billion, has grown regulations in a pair of cases the S7, Mr. Koh said.
drivers. are too onerous. Likai Gu, general manager rapidly in the past few years. being heard by the European Last year, Samsung recalled
In Europe, meanwhile, Uber is appealing the Italian of Uber Taiwan, said Uber With that growth have come Unions Court of Justice, the three million Galaxy Note 7
Ubers regulatory conflicts ruling but will have to halt oper- hopes to strike partnerships challenges. blocs highest court. devices due to battery issues
mount. ations there if nothing changes with more car-rental compa- The company is investigat- In one case, for which a that caused handset fires.
The company faces a court- before the deadline. It said that nies and taxi drivers to expand ing allegations it tolerates sex- nonbinding opinion is due The mobile chief waved off
imposed deadline to suspend Denmark needs to change its to other cities in Taiwan. ual harassment and is dealing next month, the company ar- concerns about the safety of
its only remaining ride-hailing proposed rules for the company We are able to demon- with a lawsuit from rival Al- gues that as a technology ser- the new phones batteries, say-
service in Italy by Monday, af- to reopen ride hailing. strate that a global technology phabet Inc. alleging that Uber vice it shouldnt be subject to ing that Samsung has tested
ter taxi drivers won a lawsuit We are shocked, said Carlo company can partner with the stole proprietary self-driving- traditional taxi rules. some 100,000 units internally.

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Legal Notices
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NOTICE OF SALE NOTICE OF SALE

  
      
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THE WALL STREET JOURNAL. Friday, April 14, 2017 | B5

JOHN CARREYROU INVESTIGATIVE REPORTER

The Face of Real News


John Carreyrous nearly year-long investigation into blood-testing startup
Theranos drew widespread public attention to the excesses of the Silicon
Valley boom and voided tens of thousands of blood samples that could have
endangered public health.

Real journalists and real news from Americas most trusted newspaper.

Watch the film illustrating this story at WSJ.com/John

Source: Pew Research Center, Political Polarization & Media Habits, 2014.

2017 Dow Jones & Company, Inc. All rights reserved. 6DJ5118
B6 | Friday, April 14, 2017 * *** THE WALL STREET JOURNAL.

BUSINESS NEWS

Arconic, Elliott
Spar Over Vote
BY DAVID BENOIT ahead of the May 16 vote. It
also raised questions about
Arconic Inc. said a vote to why the potential payment,
change its board could trigger known as a poison put,
a $500 million payment to a wasnt brought to light earlier.
corporate trust, a controver- Arconics Wednesday disclo-
sial tactic that could make sure is the latest skirmish in a
some investors think twice hard-fought battle over the
about backing Elliott Manage- companys future and the fate
ment Corp.s effort to oust of Mr. Kleinfeld. Elliott has
Chief Executive Klaus Klein- called him the worst CEO in
feld. the S&P 500, citing years of
UNIVERSAL/EVERETT COLLECTION

In a regulatory filing late stock underperformance and


Wednesday, the aerospace- inefficient spending. The com-
and automotive-parts maker pany has forcefully defended
said the election of the Elliott- Mr. Kleinfeld, citing his record
backed directors could count of building up the Arconic
as a change in control, which parts business and separating
would require the company to it from aluminum company Al-
pay down $500 million it owes coa in November.
The Fate of the Furious, with actor Vin Diesel, is among the coming movies that could drive up box-office growth in China. to a trust that holds deferred Both sides are stumping for
compensation and retirement shareholder votes as the con-

China Fights Box Offices Big Chill


benefits. test heads into its final weeks.
Arconic said it hasnt made The looming threat of a big
a final determination if an El- payment could make some in-
liott win would trigger the vestors think twice about vot-
Amid slower growth, fallen by nearly 1 billion yuan, nies cut back on discounts and payment. The hedge fund in ing for Elliotts nominees.
or 6.2%, Beijing-based re- Flatlining authorities cracked down on January launched a fight to re- Activists and companies of-
sales figures now search firm EntGroup said. Chinas box-ofce growth is ghost screenings, in which place Mr. Kleinfeld, who also ten fight over whether proxy
include online fees, The government agency leveling off, after years of film backers purchased seats serves as Arconics chairman, fights can trigger change-in-
didnt respond to a request as rapid growth. to make their numbers appear and is seeking four board control clauses in executive
clouding true picture to why it made the change, better. seats. compensation agreements,
which follows the sharp slow- First quarter box-ofce receipts For the previous five years, Elliott called Arconics dis- bond payments or other con-
BEIJINGChinas once-tor- down in Chinas box-office 15 billion yuan China had averaged annual closure an act of desperation tracts.
rid box office continued to growth last year. Online sales growth of 34%.
cool during the first three comprise less than 20% of This years box office is be-
months of the year, but the ex-
tent of the chill is being
masked by a new way of
tickets sold in the North
American market, according to
estimates, and service charges
10 ing dragged down mainly by a
lack of must-see films, partic-
ularly domestic Chinese re-
Texas Denies NextEra Deal
counting ticket sales. for those sales arent included leases, said Huang Guofeng, an BY ANDREW SCURRIA holder, which has spent nearly
Chinas film and media reg- in the box-office tallies. 5 analyst with Beijing-based three years under chapter 11
ulator has begun including the EntGroup Vice President data company Analysys Inter- NextEra Energy Inc. cant protection. Energy Futures
fees charged by online ticket- Hou Tao, whose company is a national. acquire one of the largest U.S. stake in Oncor was meant to
ing firms in reporting box-of- leading source of box-office 0 Content production has al- electricity-transmission busi- be the source of cash to fund a
fice figuresa significant data, said his firm proposed ways been a weak spot for us, nesses, Texas regulators said, bankruptcy-exit package.
2013 14 15 16 17
number in a country where an the new method to better re- he said. reaffirming a preliminary deci- Commissioners had sig-
estimated 70% of the tickets flect the amount of money Note: 10 billion yuan = $1.45 billion Still, Mr. Huang said he sion that has roiled debt mar- naled on March 30 that they
are bought online. that consumers spend going Source: EntGroup sees growth of 10% this year kets and upset a heavily nego- were unlikely to let the pro-
Under the new method, to the movies. THE WALL STREET JOURNAL. to about $7.3 billion, citing ex- tiated bankruptcy deal. posed combination go
Chinas box-office revenue fell Mr. Hou said including the pected blockbusters yet to be The Public Utility Commis- through. The final order ad-
just 0.1% to 14.5 billion yuan fees also helps the govern- Mr. Hous reasoning that the released, including The Fate sion of Texas, or PUCT, ad- opted Thursday cements those
($2.1 billion) for the first quar- ment keep tabs on this ex- move is needed to help offi- of the Furious, the eighth in- opted a written order at a findings and concludes that
ter from the year-earlier pe- pense to make sure that con- cials keep a lid on exorbitant stallment in a popular action public hearing Thursday dis- the merger would provide few
riod. The State Administration sumers are charged service fees. series starring Vin Diesel that approving of the proposed sale tangible benefits for ratepay-
of Press, Publication, Radio, reasonably. If they really just want to is scheduled to arrive in the- of Oncor Electric Delivery Co. ers while exposing Oncor to
Film and Television confirmed One Beijing cinema man- show that part of revenue, aters this weekend. as against the public interest. new risks by linking its credit
to The Wall Street Journal ager said authorities might why cant they release it sepa- North America is still the The regulators decision profile with NextEras.
that this figure includes on- have changed the method to rately, said this person. leading film market, with a likely disrupts yet again the A Next-Era spokesman de-
line-ticket-service fees. make the slowdown in box-of- China posted a 3.7% in- box office of $11.4 billion debt-restructuring plans of clined to comment.
Without the fees included, fice growth appear less severe crease in its box office last last year. Energy Future Holdings Peg Brickley
Chinas box office would have than it is. He disagreed with year as ticket-selling compa- Lilian Lin Corp., Oncors 80% share- contributed to this article.

April 18, 2017 New York City

Join Wall Street Journal Global Management Editor Nikki Waller at the
WSJ Women in Finance dinner on Tuesday, April 18th in New York City.
Geraldine Buckingham
Leaders in nancefeaturing Geraldine Buckingham of BlackRock, Lisa Carnoy Senior Managing Director and Global
of US Trust, Bank of America Private Wealth Management and Carla Harris Head of Corporate Strategy, BlackRock
of Morgan Stanleywill discuss how companies and individuals have driven
change to advance women on Wall Street.

Some of the issues to be explored include the outlook for women in nance
today, what companies are doing to push high-potential executives up through
the pipeline and the approaches individuals can take to promote themselves.
Lisa Carnoy
Division Executive for the Northeast, U.S. Trust,
Bank of America Private Wealth Management
To request an invitation email, WomenIn@wsj.com.
To learn more about the program, please visit WomenIn.wsj.com.

Proudly supported by:

Carla Harris
Vice Chairman and Managing Director,
Morgan Stanley

2017 Dow Jones & Co., Inc. All rights reserved. 6DJ5227
THE WALL STREET JOURNAL. Friday, April 14, 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
20453.25 t 138.61, or 0.67% Trailing P/E ratio * 20.82 18.33 2328.95 t 15.98, or 0.68% Trailing P/E ratio * 24.45 23.62 5805.15 t 31.01, or 0.53% Trailing P/E ratio * 25.85 22.10
High, low, open and close for each P/E estimate * 17.59 16.70 High, low, open and close for each P/E estimate * 18.25 17.41 High, low, open and close for each P/E estimate * 20.25 18.46
trading day of the past three months. Dividend yield 2.38 2.54 trading day of the past three months. Dividend yield 1.98 2.20 trading day of the past three months. Dividend yield 1.11 1.26
All-time high 21115.55, 03/01/17 All-time high: 2395.96, 03/01/17 All-time high: 5914.34, 03/30/17

Current divisor 0.14602128057775


21500 2390 5960

21000 2350 5850

20500 2310 5740

Session high
20000 2270 5630
DOWN UP
t

Session open Close 65-day moving average


Close Open 19500 2230 5520
t

65-day moving average


Session low 65-day moving average
19000 2190 5410

Bars measure the point change from session's open


18500 2150 5300
Jan. Feb. Mar. Apr. Jan. Feb. Mar. Apr. Jan. Feb. Mar. Apr.
* 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* 764,738,583 14,636,183
Industrial Average 20612.27 20453.25 20453.25 -138.61 -0.67 21115.55 17140.24 14.1 3.5 8.5 share price of $2 and minimum after-hours volume of 5,000 shares. Adv. volume* 104,680,901 4,528,867
Transportation Avg 8985.12 8874.11 8874.56 -97.28 -1.08 9593.95 7093.40 11.2 -1.9 6.4 Most-active issues in late trading Decl. volume* 646,547,395 9,952,692
Utility Average 706.61 700.23 703.15 -2.20 -0.31 720.45 625.44 6.9 6.6 9.6 Volume After Hours Issues traded 3,076 334
Company Symbol (000) Last Net chg % chg High Low Advances 855 134
Total Stock Market 24331.02 24125.20 24125.20 -173.90 -0.72 24868.78 20583.16 12.6 3.6 8.2
SPDR S&P 500 SPY 19,257.5 232.33 -0.18 -0.08 234.55 232.33 Declines 2,091 179
Barron's 400 617.56 610.89 610.89 -5.18 -0.84 635.07 491.89 16.6 1.5 7.0
VanEck Vectors Jr Gold GDXJ 4,467.8 36.72 0.02 0.05 36.76 36.67 Unchanged 130 21
Nasdaq Stock Market iPath S&P 500 VIX ST Fut VXX 2,560.4 18.30 0.04 0.22 18.40 18.21 New highs 53 7
Nasdaq Composite 5856.54 5805.15 5805.15 -31.01 -0.53 5914.34 4594.44 17.4 7.8 13.2 VanEck Vectors Gold Miner GDX 2,325.8 24.51 -0.03 -0.12 24.67 24.48 New lows 27 5
5398.99 5353.59 Closing tick 148 18
Nasdaq 100 5353.59 -23.44 -0.44 5440.41 4201.05 17.5 10.1 15.8 iShares MSCI Emg Markets EEM 1,796.9 39.14 ... unch. 39.50 39.09
Closing Arms 2.49 1.90
PwrShrs QQQ Tr Series 1 QQQ 1,759.3 130.40 ... unch. 130.70 130.26
Standard & Poor's Block trades* 6,417 169
iShares Russell 2000 ETF IWM 1,732.5 133.70 -0.02 -0.01 135.08 133.37
500 Index 2348.26 2328.95 2328.95 -15.98 -0.68 2395.96 2000.54 11.8 4.0 8.7 Nasdaq NYSE Arca
Pfizer PFE 1,664.2 33.90 0.02 0.05 33.98 33.88
MidCap 400 1700.43 1680.86 1681.04 -18.86 -1.11 1758.27 1416.66 15.2 1.2 8.4 Total volume*1,572,393,125 308,733,146
SmallCap 600 825.95 815.56 815.62 -9.61 -1.16 862.21 670.90 18.0 -2.7 8.3 Percentage gainers Adv. volume* 464,715,356 76,631,601
Decl. volume*1,069,776,712 231,513,220
Other Indexes Tahoe Resources TAHO 9.5 9.45 0.43 4.77 9.45 9.02
Issues traded 2,988 1,311
Russell 2000 1361.32 1345.24 1345.24 -13.96 -1.03 1413.64 1089.65 19.2 -0.9 6.6 WisdomTree Investments WETF 95.1 8.60 0.38 4.62 8.60 8.22
Advances 870 374
NYSE Composite 11420.39 11324.53 11324.53 -98.64 -0.86 11661.22 9973.54 9.3 2.4 3.3 Sabre Corp. SABR 193.3 22.03 0.95 4.51 22.17 21.08 Declines 1,951 911
Value Line 513.73 508.37 508.37 -5.02 -0.98 529.13 435.06 11.0 0.4 2.3 Ardmore Shipping ASC 24.3 8.05 0.30 3.92 8.05 7.75 Unchanged 167 26
NYSE Arca Biotech 3541.28 3472.65 3525.55 47.24 1.36 3642.30 2818.70 10.2 14.7 14.1
Adeptus Health ADPT 55.6 2.41 0.08 3.43 2.41 2.30 New highs 41 21
New lows 52 4
NYSE Arca Pharma 507.04 505.33 505.34 -2.08 -0.41 554.66 463.78 -1.4 4.9 1.6 ...And losers
Closing tick 305 120
KBW Bank 90.03 88.01 88.02 -1.28 -1.43 99.33 60.27 31.3 -4.1 8.9 HTG Molecular Diagnostics HTGM 55.2 5.63 -0.18 -3.10 6.06 5.13 Closing Arms 1.03 1.14
PHLX Gold/Silver 90.82 89.32 89.40 -0.02 -0.03 112.86 73.03 17.7 13.4 -1.1 Teladoc TDOC 5.4 24.00 -0.70 -2.83 24.70 24.00 Block trades* 6,455 1,538
PHLX Oil Service 168.25 163.87 164.32 -4.23 -2.51 192.66 148.37 1.1 -10.6 -16.6 Achillion Pharm ACHN 19.5 3.55 -0.07 -1.93 3.62 3.55 * Primary market NYSE, NYSE MKT NYSE Arca only.
PHLX Semiconductor 974.62 960.01 960.01 -6.53 -0.68 1012.29 630.77 41.3 5.9 19.7 Chimera Investment CIM 48.2 20.25 -0.33 -1.60 20.58 20.25 (TRIN) A comparison of the number of advancing and declining
CBOE Volatility 16.22 14.97 0.19 25.76 10.58 13.7 issues with the volume of shares rising and falling. An
15.96 1.20 16.3 -2.1 OPKO Health OPK 38.8 7.50 -0.12 -1.57 7.62 7.50 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 2650.30 17.44 0.65 4.7 Nexvet Biopharma NVET 6.62 2.57 63.46 6.76 2.61 109.5 SkyPeople Fruit Juice SPU 2.94 -2.39 -44.84 20.95 1.62 22.5
The Global Dow Euro 2348.61 16.68 0.71 3.9 China Auto Logistics CALI 2.99 0.60 25.10 4.69 1.01 175.9 Sorrento Therapeutics SRNE 1.80 -1.15 -38.98 8.35 1.75 -73.9
DJ Global Index 343.85 1.43 0.41 5.5 Tocagen TOCA 12.45 2.45 24.50 ... ... ... DelMar Pharmaceuticals DMPI 3.04 -1.03 -25.31 10.87 2.88 -42.4
World DJ Global ex U.S. 229.13 0.26 0.12 7.1 Yext YEXT 13.41 2.41 21.91 ... ... ... North Atlantic Drilling NADL 2.10 -0.55 -20.75 8.08 0.65 -27.8
Americas DJ Americas 562.20 3.89 0.69 4.0 Oi ADR New OIBR/C 6.73 1.10 19.54 9.19 1.01 417.7 SemiLEDS LEDS 3.19 -0.81 -20.25 11.35 1.36 -0.3
Brazil Sao Paulo Bovespa 62826.28 1065.40 1.67 4.3 China Cord Blood CO 8.01 1.05 15.09 8.06 4.27 26.9 DAVIDsTEA DTEA 6.25 -1.30 -17.22 14.30 6.20 -44.4
Canada S&P/TSX Comp 15535.48 112.92 0.72 1.6 Yuma Energy YUMA 2.62 0.32 13.70 7.40 0.05 -37.7 Papa Murphy's Holdings FRSH 5.66 -0.92 -13.98 12.96 3.56 -53.2
Mexico IPC All-Share 48955.82 Closed 7.3 Mexco Energy MXC 4.25 0.45 11.84 5.61 2.08 67.4 China TechFaith ADR CNTF 2.41 -0.38 -13.62 4.21 1.45 -42.6
Chile Santiago IPSA 3750.31 4.26 0.11 16.4 Crossroads Systems CRDS 3.94 0.40 11.30 11.80 2.60 -1.5 Globus Maritime GLBS 2.97 -0.44 -12.90 23.60 1.12 134.8
Axovant Sciences AXON 22.00 2.20 11.11 22.09 10.69 76.6 Apogee Enterprises APOG 50.72 -7.36 -12.67 61.00 39.48 12.7
Europe Stoxx Europe 600 380.58 1.32 0.35 5.3
Euro zone Euro Stoxx 369.75 1.73 0.47 5.6 Applied Optoelectronics AAOI 45.30 4.48 10.98 60.19 8.08 178.8 Alliance MMA AMMA 2.24 -0.31 -12.16 5.47 1.87 ...
Belgium Bel-20 3790.76 16.96 0.45 5.1 Pulse Biosciences PLSE 23.26 2.28 10.87 35.93 4.03 ... Apricus Biosciences APRI 1.94 -0.26 -11.82 6.10 1.10 -67.7
France CAC 40 5071.10 30.01 0.59 4.3 Perma-Fix PESI 3.60 0.35 10.77 5.64 2.85 -3.7 Direxion Jr Gold Bull 3X JNUG 6.80 -0.79 -10.41 33.29 3.77 -31.4
Germany DAX 12109.00 45.70 0.38 5.5 Direxion Jr Gold Bear 3X JDST 13.77 1.28 10.25 200.00 11.75 -92.8 Ultra Petroleum UPL 12.12 -1.38 -10.22 ... ... ...
6.3 Verso Cl A VRS 5.94 0.54 10.00 13.60 4.37 ... Netshoes (Cayman) NETS 14.50 -1.60 -9.94 17.29 14.40 ...
Israel Tel Aviv 1378.66 15.46 1.11
Italy FTSE MIB 19773.68 231.25 1.16 2.8
Netherlands AEX 515.77 2.04 0.39 6.7 Most Active Stocks Volume Movers Ranked by change from 65-day average*
Spain IBEX 35 10326.10 34.40 0.33 10.4
Volume % chg from Latest Session 52-Week Volume % chg from Latest Session 52-Week
Sweden SX All Share 563.03 0.51 0.09 5.3 Company Symbol (000) 65-day avg Close % chg High Low Company Symbol (000) 65-day avg Close % chg High Low
Switzerland Swiss Market 8629.02 34.75 0.40 5.0
Finl Select Sector SPDR XLF 118,617 66.4 22.90 -1.29 25.30 17.31 SkyPeople Fruit Juice SPU 2,243 3669 2.94 -44.84 20.95 1.62
U.K. FTSE 100 7327.59 21.40 0.29 2.6
Bank of America BAC 86,865 -11.4 22.34 -1.37 25.80 12.05 Cambria Shareholder Yield SYLD 349 2830 33.05 -0.83 35.00 26.75
Asia-Pacific DJ Asia-Pacific TSM 1545.47 0.79 0.05 8.6 iPath S&P 500 VIX ST Fut VXX 73,719 50.1 18.26 1.90 71.48 15.30 Sit Rising Rate ETF RISE 140 2067 23.06 -0.63 24.09 22.17
Australia S&P/ASX 200 5889.90 44.10 0.74 4.0 SPDR S&P 500 SPY 73,462 -5.1 232.51 -0.65 240.32 198.65 Janus Short Duration Incm VNLA 167 1523 50.20 0.02 52.52 49.41
China Shanghai Composite 3275.96 2.13 0.07 5.6 Direxion Jr Gold Bull 3X JNUG 72,090 18.1 6.80 -10.41 33.29 3.77 Hostess Brands Cl A TWNK 17,503 1514 15.68 0.19 16.48 9.50
Hong Kong Hang Seng 24261.66 51.84 0.21 10.3 VanEck Vectors Gold Miner GDX 56,807 -9.3 24.54 -0.12 31.79 18.58 Conyers Park Acquisition CPAA 1,308 1417 11.60 2.65 11.86 10.00
India S&P BSE Sensex 29461.45 182.03 0.61 10.6 Advanced Micro Devices AMD 52,616 -24.0 12.31 -3.53 15.55 2.60 ETRACS Monthly Pay 2xLev MRRL 73 1316 17.63 0.90 19.50 11.00
Japan Nikkei Stock Avg 18426.84 125.77 0.68 3.6 Direxion Gold Miners Bl 3 NUGT 47,731 2.9 11.15 -0.27 35.80 5.51 FlexShares STOXX Gl Broad NFRA 960 1302 45.66 -0.50 46.08 41.46
Singapore Straits Times 3169.24 16.77 0.53 10.0 Wells Fargo WFC 47,402 162.5 51.35 -3.33 59.99 43.55 Anchor Bancorp ANCB 90 1108 24.67 -0.54 27.50 22.61
South Korea Kospi 2148.61 19.70 0.93 6.0 iShares MSCI Emg Markets EEM 46,385 -11.1 39.14 -0.43 40.23 31.70 Harvest Natural Resources HNR 800 1034 6.82 -2.15 7.35 1.67
Taiwan Weighted 9836.68 19.00 0.19 6.3 * 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 .02910 34.370 4.0
A consumer rate against its New car loan Vietnam dong .00004411 22670 0.4
5.00% Argentina peso .0660 15.1598 4.5
benchmark over the past year 8% Brazil real .3178 3.1462 3.3 Europe
Bankrate.com avg: 3.23%
Yen
s

4.00 Canada dollar .7503 1.3329 0.8 Czech Rep. koruna .03977 25.146 2.1
Think Mutual Bank 1.89% 4 s Chile peso .001537 650.60 2.9 Denmark krone .1427 7.0094
Prime rate 0.8
4.00% Rochester, MN 800-288-3425 WSJ $ index
t 3.00 0 Colombia peso .0003485 2869.37 4.4 Euro area euro 1.0615 .9421 0.9
Lake Elmo Bank 1.99% Ecuador US dollar 1 1 unch Hungary forint .003392 294.78 0.2
3.50
t

Lake Elmo, MN 651-777-8365 Thursday 2.00 4 Mexico peso .0538 18.5879 10.4 Iceland krona .008975 111.42 1.4
s
Euro Peru new sol .3071 3.256 2.9 Norway krone .1165 8.5859 0.7
3.00 Hilltop National Bank 2.24% 1.00 8 Uruguay peso .03509 28.5000 2.9 Poland zloty .2499 4.0017 4.4
t

t Casper, WY 307-265-2740 One year ago Venezuela b. fuerte .098626 10.1394 1.4 Russia ruble .01777 56.287 8.1
2.50 0.00 12
TrustCo Bank 2.24% Asia-Pacific Sweden krona .1106 9.0435 0.7
New car loan 1 3 6 1 2 3 5 710 30
Albany, NY 2016 2017 Switzerland franc .9942 1.0058 1.3
518-436-9043 Australian dollar .7568 1.3214 4.8
2.00 month(s) years Turkey lira .2730 3.6633 4.0
UniBank for Savings 2.24% China yuan .1451 6.8900 0.8
M J J A S O N D J F MA maturity Ukraine hryvnia .0372 26.8725 0.8
Hong Kong dollar .1286 7.7741 0.2
2016 2017 Whitinsville, MA 800-578-4270 UK pound 1.2505 .7997 1.3
India rupee .01550 64.515 5.1
Sources: Ryan ALM; Tullett Prebon; WSJ Market Data Group Middle East/Africa
Indonesia rupiah .0000753 13283 1.8
Yield/Rate (%) 52-Week Range (%) 3-yr chg Japan yen .009167 109.09 6.8 Bahrain dinar 2.6540 .3768 0.1
Interest rate Last (l)Week ago Low 0 2 4 6 8 High (pct pts)
Kazakhstan tenge .003207 311.79 6.6 Egypt pound .0550 18.1665 0.2
Federal-funds rate target 0.75-1.00 0.75-1.00 0.25 l 1.00 0.75 Corporate Borrowing Rates and Yields Macau pataca .1249 8.0079 1.2 Israel shekel .2730 3.6629 4.8
Malaysia ringgit .2266 4.4125 1.6 Kuwait dinar 3.2811 .3048 0.3
Prime rate* 4.00 4.00 3.50 l 4.00 0.75 Yield (%) 52-Week Total Return (%)
Bond total return index Close Last Week ago High Low 52-wk 3-yr New Zealand dollar .6998 1.4290 1.0 Oman sul rial 2.5972 .3850 0.02
Libor, 3-month 1.16 1.16 0.62 l 1.16 0.93 Pakistan rupee .00954 104.845 0.5 Qatar rial .2747 3.640 0.01
Money market, annual yield 0.30 0.34 0.22 l 0.34 -0.11 Treasury, Ryan ALM 1450.319 1.929 2.006 2.237 1.141 1.050 2.927 Philippines peso .0202 49.424 0.4 Saudi Arabia riyal .2666 3.7503 0.01
Five-year CD, annual yield 1.30 1.30 1.17 l 1.30 -0.09 10-yr Treasury, Ryan ALM 1728.664 2.237 2.343 2.609 1.366 1.537 3.256 Singapore dollar .7151 1.3985 3.4 South Africa rand .0743 13.4599 1.7
30-year mortgage, fixed 4.01 4.07 3.43 l 4.33 -0.35 South Korea won .0008800 1136.32 5.9
DJ Corporate 368.872 3.050 3.140 3.390 2.460 2.519 3.813 Close Net Chg % Chg YTD%Chg
Sri Lanka rupee .0065738 152.12 2.5
15-year mortgage, fixed 3.23 3.28 2.70 l 3.50 -0.15 Aggregate, Barclays Capital 1910.890 2.510 2.570 2.790 1.820 1.056 2.731 Taiwan dollar .03298 30.321 6.6 WSJ Dollar Index 90.22 0.19 0.21 2.93
Jumbo mortgages, $424,100-plus 4.55 4.62 4.02 l 4.88 -0.11 High Yield 100, Merrill Lynch 2761.433 5.464 5.394 6.804 5.200 12.130 3.248 Sources: Tullett Prebon, WSJ Market Data Group
Five-year adj mortgage (ARM) 3.33 3.36 2.97 l 4.03 -0.10
Fixed-Rate MBS, Barclays 1965.160 2.820 2.850 3.120 1.930 0.803 2.691
New-car loan, 48-month 3.23 3.36 2.87 l 3.36 0.42
HELOC, $30,000 4.89 4.87 4.57 l 4.96 0.08
Muni Master, Merrill 510.059 2.017 2.096 2.516 1.297 0.086 2.911 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 775.340 5.592 5.655 6.290 5.134 8.368 5.571 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 577.35 3.74 0.65 589.81 488.14 17.68 1.78


ONLINE 187.77 0.21 195.82 7.44 -2.46

WSJ
TR/CC CRB Index 0.39 173.64
Crude oil, $ per barrel 53.18 0.07 0.13 54.45 39.51 28.14 -1.01
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 3.227 0.040 1.26 3.93 1.90 63.81 -13.35
.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. 1285.90 10.60 0.83 1364.90 1127.80 4.97 11.82
B8 | Friday, April 14, 2017 THE WALL STREET JOURNAL.

COMMODITIES WSJ.com/commodities

Futures Contracts Open


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

Metal & Petroleum Futures Milk (CME)-200,000 lbs., cents per lb.
Agriculture Futures April 15.23 15.26 15.23 15.23 .04 5,283 Currency Futures
Contract Open June 15.53 15.60 15.31 15.38 .17 4,970
Open High hi lo Low Settle Chg interest Corn (CBT)-5,000 bu.; cents per bu. Japanese Yen (CME)-12,500,000; $ per 100
Cocoa (ICE-US)-10 metric tons; $ per ton. April .9251 .9251 s .9143 .9168 .0053 714
Copper-High (CMX)-25,000 lbs.; $ per lb. May 368.75 373.00 368.50 371.00 2.00 372,785
May 1,927 1,940 1,874 1,879 62 8,961 June .9200 .9221 s .9165 .9190 .0054 194,826
April 2.5650 2.5730 2.5650 2.5695 0.0255 1,046 July 376.00 379.50 375.50 378.00 2.00 556,910 July 1,955 1,970 1,911 1,915 52 136,734 Canadian Dollar (CME)-CAD 100,000; $ per CAD
May 2.5380 2.5890 2.5375 2.5705 0.0255 99,833 Oats (CBT)-5,000 bu.; cents per bu. Coffee (ICE-US)-37,500 lbs.; cents per lb. April .7558 .7562 .7498 .7526 .0019 683
Gold (CMX)-100 troy oz.; $ per troy oz. May 224.75 225.50 222.50 225.50 1.00 3,476 May 138.50 140.10 138.50 138.90 .60 35,002 June .7553 .7569 .7503 .7532 .0019 124,133
April 1285.30 1287.60 s 1282.00 1285.90 10.60 1,799 July 223.75 224.25 222.00 224.25 .50 2,502 British Pound (CME)-62,500; $ per
July 140.80 142.40 140.75 141.25 .65 94,143
June 1288.30 1290.70 s 1283.80 1288.50 10.40 336,135 Soybeans (CBT)-5,000 bu.; cents per bu. April 1.2569 1.2571 1.2503 1.2517 .0023 233
Aug 1291.50 1293.80 s 1287.10 1291.70 10.30 45,182
Sugar-World (ICE-US)-112,000 lbs.; cents per lb.
May 947.25 959.50 946.75 955.50 7.75 246,944 May 16.75 17.16 16.56 16.60 .10 183,409 June 1.2567 1.2594 1.2520 1.2537 .0025 241,788
Oct 1295.30 1296.70 s 1290.80 1295.00 10.40 7,023 Swiss Franc (CME)-CHF 125,000; $ per CHF
July 958.00 970.50 958.00 966.25 7.50 280,046 July 16.74 17.13 16.55 16.57 .17 287,601
Dec 1297.30 1300.30 s 1293.90 1298.30 10.30 47,398 June 1.0008 1.0029 .9970 .9986 .0034 46,823
Feb'18 1300.60 1303.70 s 1298.30 1301.60 10.20 7,939
Soybean Meal (CBT)-100 tons; $ per ton. Sugar-Domestic (ICE-US)-112,000 lbs.; cents per lb. Sept 1.0083 1.0088 1.0034 1.0048 .0035 156
Palladium (NYM) - 50 troy oz.; $ per troy oz. May 312.40 318.50 312.20 317.50 4.80 102,014 July 28.55 28.75 28.55 28.91 .12 1,089 Australian Dollar (CME)-AUD 100,000; $ per AUD
April 797.00 797.00 797.00 795.75 0.40 1 July 317.00 322.50 316.50 321.80 4.80 164,923 Sept 29.47 29.47 29.47 29.47 .17 1,494 April .7555 .7593 .7555 .7583 .0108 230
May 805.00 805.00 794.00 795.75 0.40 2 Soybean Oil (CBT)-60,000 lbs.; cents per lb. Cotton (ICE-US)-50,000 lbs.; cents per lb. May .7528 .7590 .7525 .7578 .0106 456
June 799.95 809.85 791.20 795.90 0.40 32,627 May 31.26 31.48 31.16 31.19 .05 118,953 May 74.80 75.74 74.66 75.62 .89 44,583 June .7523 .7586 .7518 .7574 .0107 119,963
Sept 800.65 810.00 795.35 796.25 0.40 1,722 July 31.46 31.67 31.34 31.38 .08 167,533 July 76.23 76.75 76.10 76.54 .31 104,808 Sept .7520 .7574 .7516 .7564 .0106 1,046
Platinum (NYM)-50 troy oz.; $ per troy oz. Rough Rice (CBT)-2,000 cwt.; $ per cwt. Orange Juice (ICE-US)-15,000 lbs.; cents per lb. Dec .7555 .7570 .7538 .7556 .0107 108
April 973.00 977.30 971.30 973.70 8.80 37 May 1016.00 1026.00 1003.00 1017.00 1.00 6,889 May 162.25 163.90 159.15 160.75 .40 4,814 Mexican Peso (CME)-MXN 500,000; $ per MXN
July 975.10 981.10 971.40 977.40 9.50 60,569 July 153.95 155.95 153.20 155.75 1.30 4,460 June .05341 .05349 s .05311 .05339 .00056 205,335
July 1042.00 1050.00 1029.50 1043.00 1.50 2,995
Silver (CMX)-5,000 troy oz.; $ per troy oz. Euro (CME)-125,000; $ per
Wheat (CBT)-5,000 bu.; cents per bu. April 1.0662 1.0679 1.0609 1.0623 .0026 645
April 18.475 18.500 18.470 18.489 0.210 199
May 18.510 18.605 s 18.415 18.510 0.210 133,630
May 432.50 436.00 428.75 429.75 3.50 148,759 Interest Rate Futures June 1.0698 1.0710 1.0641 1.0654 .0027 417,753
Crude Oil, Light Sweet (NYM)-1,000 bbls.; $ per bbl. July 445.75 448.75 442.25 442.75 3.50 224,699
Treasury Bonds (CBT)-$100,000; pts 32nds of 100%
May 52.85 53.39 52.82 53.18 0.07 211,355 Wheat (KC)-5,000 bu.; cents per bu. June 153-290 154-100 153-110 154-000 1-00.0 642,477 Index Futures
June 53.35 53.80 53.24 53.60 0.08 517,502 May 429.75 432.75 425.25 427.25 2.75 74,151
Sept 152-250 152-280 152-060 152-240 1-00.0 169 Mini DJ Industrial Average (CBT)-$5 x index
July 53.68 54.12 53.62 53.93 0.08 198,624 July 442.25 445.25 437.75 439.25 3.25 123,595
Treasury Notes (CBT)-$100,000; pts 32nds of 100% June 20498 20549 20388 20414 102 131,203
Sept 54.14 54.55 54.09 54.39 0.09 186,196 Wheat (MPLS)-5,000 bu.; cents per bu. 125-310 126-080 125-240 126-025 19.5 3,092,992
Dec 54.50 54.92 54.43 54.75 0.10 275,153
June Sept 20468 20489 20350 20361 101 308
May 528.00 533.00 528.00 530.25 1.50 17,658
Dec'18 53.95 54.48 53.86 54.17 0.07 126,672 Sept 125-170 125-285 125-155 125-240 20.0 2,617 S&P 500 Index (CME)-$250 x index
July 536.75 541.75 536.75 538.75 1.50 26,519 June 2339.00 2344.50 2324.30 2327.40 13.40 53,208
NY Harbor ULSD (NYM)-42,000 gal.; $ per gal. 5 Yr. Treasury Notes (CBT)-$100,000; pts 32nds of 100%
Cattle-Feeder (CME)-50,000 lbs.; cents per lb. June 118-177 118-225 118-135 118-200 11.2 3,042,770 June'18 2328.60 2337.40 2317.90 2321.10 13.30 250
May 1.6490 1.6583 1.6419 1.6495 .0025 76,597 137.725 138.625 136.525 137.800 .300 4,348
June 1.6555 1.6658 1.6507 1.6575 .0022 101,369
April
Sept 118-027 118-042 117-300 118-020 12.0 1,590 Mini S&P 500 (CME)-$50 x index
Aug 140.000 141.450 139.050 140.275 .325 23,306 June 2338.75 2345.00 2324.00 2327.50 13.25 2,864,722
Gasoline-NY RBOB (NYM)-42,000 gal.; $ per gal. 2 Yr. Treasury Notes (CBT)-$200,000; pts 32nds of 100% 2336.50 2342.00 2321.25 2324.50 13.50 6,809
May 1.7397 1.7449 1.7218 1.7349 .0068 87,359 Cattle-Live (CME)-40,000 lbs.; cents per lb. June 108-120 108-125 108-100 108-117 2.0 1,389,473
Sept
June 1.7388 1.7474 1.7262 1.7389 .0057 105,737 April 124.200 125.750 s 123.750 125.375 1.175 16,863 Mini S&P Midcap 400 (CME)-$100 x index
30 Day Federal Funds (CBT)-$5,000,000; 100 - daily avg. June 1696.50 1701.50 1678.30 1678.90 19.60 97,957
Natural Gas (NYM)-10,000 MMBtu.; $ per MMBtu. June 114.350 115.525 s 113.825 114.700 .350 186,196
April 99.108 99.108 t 99.105 99.100 .008 431,551 Sept 1702.50 1702.50 1702.50 1677.50 19.60 1
May 3.182 3.243 3.149 3.227 .040 178,467 Hogs-Lean (CME)-40,000 lbs.; cents per lb. May 99.095 99.100 99.095 99.090 .005 254,583 Mini Nasdaq 100 (CME)-$20 x index
June 3.258 3.321 3.228 3.307 .045 180,376 April 62.250 62.525 t 62.150 62.450 .225 10,738 5369.0 5399.5 5347.5 5359.0 13.8 248,315
3.329 3.387 3.300 3.376 .044 169,014
10 Yr. Del. Int. Rate Swaps (CBT)-$100,000; pts 32nds of 100% June
July June 71.975 72.750 t 71.525 72.500 .225 86,170 Sept 5379.8 5405.3 5354.0 5364.3 13.8 527
Sept 3.333 3.407 3.329 3.399 .044 125,937 June 93.016 93.141 s 92.844 93.094 .484 31,220
Lumber (CME)-110,000 bd. ft., $ per 1,000 bd. ft. 1 Month Libor (CME)-$3,000,000; pts of 100% Mini Russell 2000 (ICE-US)-$100 x index
Oct 3.360 3.421 3.340 3.414 .044 129,678 May 393.20 399.60 383.50 385.00 8.50 3,520 June 1355.50 1361.40 1341.90 1344.60 12.60 584,448
Jan'18 3.610 3.670 3.607 3.664 .037 93,829 May 98.9850 98.9850 t 98.9725 98.9725 .0075 1,010
July 397.10 402.80 387.00 390.60 5.40 1,901 Sept 1352.10 1352.10 1352.10 1343.10 12.60 225
July 98.8300 98.8550 98.8300 98.8325 .0075 1,809
Mini Russell 1000 (ICE-US)-$100 x index
Eurodollar (CME)-$1,000,000; pts of 100% June 1295.40 1300.40 1288.80 1290.20 7.70 7,573
April 98.8425 98.8425 98.8400 98.8416 .0041 232,358 U.S. Dollar Index (ICE-US)-$1,000 x index
Cash Prices | WSJ.com/commodities Thursday, April 13, 2017 June
Dec
98.7350
98.5500
98.7350
98.5500
98.7150
98.5200
98.7150
98.5350
.0050
.0200
1,437,009
1,635,822
June
Sept
100.03
99.88
100.50
100.32
99.93
99.78
100.46
100.30
.25
.24
66,286
1,090
These prices reflect buying and selling of a variety of actual or physical commodities in the marketplace Dec'18 98.1900 98.2100 s 98.1600 98.1950 .0600 1,515,599
Source: SIX Financial Information
separate from the futures price on an exchange, which reflects what the commodity might be worth in future
months.
Thursday Thursday Thursday Bonds | WSJ.com/bonds
Coins,wholesale $1,000 face-a 14186 Soybeans,No.1 yllw IL-bp,u 9.2150
Energy
Other metals Wheat,Spring14%-pro Mnpls-u 6.1025 Tracking Bond Benchmarks
Propane,tet,Mont Belvieu-g 0.6910 LBMA Platinum Price PM *962.0 Wheat,No.2 soft red,St.Louis-bp,u 4.2200
Butane,normal,Mont Belvieu-g 0.8601 Wheat - Hard - KC (USDA) $ per bu-u 3.8225 Return on investment and spreads over Treasurys and/or yields paid to investors compared with 52-week
Platinum,Engelhard industrial 977.0
NaturalGas,HenryHub-i 2.980 Platinum,Engelhard fabricated 1077.0 Wheat,No.1soft white,Portld,OR-u 4.6488 highs and lows for different types of bonds
NaturalGas,TranscoZone3-i 2.970 Palladium,Engelhard industrial 811.0 Total Total
NaturalGas,TranscoZone6NY-i 2.440
Food return YTD total Yield (%) return YTD total Yield (%)
Palladium,Engelhard fabricated 911.0
NaturalGas,PanhandleEast-i 2.720 Beef,carcass equiv. index close return (%) Index Latest Low High close return (%) Index Latest Low High
Aluminum, LME, $ per metric ton *1907.0
NaturalGas,Opal-i 2.740 choice 1-3,600-900 lbs.-u 193.33 Mortgage-Backed Bloomberg Barclays
Copper,Comex spot 2.5695 Broad Market Bloomberg Barclays
NaturalGas,MarcellusNE PA-i 2.380 select 1-3,600-900 lbs.-u 182.18
Iron Ore, 62% Fe CFR China-s 67.1