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A2 | Monday, November 6, 2017 * *** THE WALL STREET JOURNAL.
U.S. NEWS
THE OUTLOOK | Jacob M. Schlesinger
ECONOMIC
CALENDAR
China-Trade Course Still Taking Shape TUESDAY: Federal Reserve
Chairwoman Janet Yellen speaks
in Washington as she accepts
Donald tougher enforcement. The tentious renegotiations of an award for ethics in govern-
Trump will be Growing Gap president won’t make head- the North American Free ment, marking her first public
joined in Bei- President Donald Trump has so far made renegotiating trade deals lines on that front this week Trade Agreement and the appearance since President Don-
jing this week with Mexico, Canada and South Korea higher priorities than either. He touts his friendly U.S.-Korea Free Trade Agree- ald Trump picked Jerome Powell
by executives confronting China—even though China’s trade surplus is much bigger. relationship with Mr. Xi and ment. With only one con- to serve as the next chairman of
from more isn’t expected to risk that firmed trade agency political the Fed. If he wins Senate con-
than two dozen U.S. compa- $100 billion chemistry. appointee, Robert Lighthizer, firmation, Mr. Powell would take
nies planning to announce Aides are laying ground- the administration can only the helm at the central bank in
trade deals they say would work for sanctions that could do so much. February, when Ms. Yellen’s four-
0 Canada
be worth billions of dollars. be rolled out after his return. The Nafta and Korea fights year term expires.
South Korea
But that alone won’t make Agency studies are exploring have raised tensions with Eurostat releases eurozone
–100 Mexico
it an economic-policy suc- tariffs and quotas on steel, economic allies who might retail sales figures for Septem-
cess. Deals with a confined aluminum, solar panels and otherwise join an effort to ber. In August, retail sales fell
number of companies—in- –200 washing machines—all partly restrain Beijing. The 12-na- 0.5% from July, the second
volving soybeans, airplanes aimed at China—with tion Trans-Pacific Partner- straight month of declines even
and natural gas among other early-2018 deadlines. Mr. ship, a trade deal that Mr. as the eurozone’s economic re-
products—are unlikely to –300 Trump’s trade representa- Trump had spiked, was simi- covery has gathered pace.
dent the U.S. goods trade China tive is building the case that larly aimed at encircling THURSDAY: China’s statistics
deficit with China that Mr. –400 China is guilty of unfair China with a regional bloc bureau releases producer and
Trump has vowed to drain: a trade practices because it governed by American-style consumer-price index readings
1985 ’90 ’95 2000 ’05 ’10 ’15
vat of red ink worth $347 pressures American compa- commercial rules. for October (release time is
billion last year, and on track Source: Commerce Department THE WALL STREET JOURNAL. nies to turn over intellectual Mr. Trump shows no sec- Wednesday evening in the U.S.).
to get even bigger in 2017. property as the price for do- ond thoughts about China’s factory-gate prices rose
Instead, Mr. Trump’s first strategy. broken promises. The July ing business in the world’s TPP. But his aides say his 6.9% on the year to a six-month
trip as president to the coun- Mr. Trump’s early ap- dialogue broke down with no second-largest economy. Asia trip will highlight a high in September, as the econ-
try he has branded “an eco- proach has, in fact, looked a new agreements. No further What remains uncertain is commitment for a U.S.-led omy continued to defy many
nomic enemy” could raise lot like George W. Bush’s and rounds have been scheduled, when, if ever, Mr. Trump will regional economic alliance in economists’ expectations of a
more questions than it an- Barack Obama’s. During Pres- and Mr. Xi is instead tighten- move on any of these items. a different form. That is vital slowdown. Meanwhile, the con-
swers about his plans for ident Xi Jinping’s April U.S. ing the central government’s Internal divisions have for any attempt to pressure sumer-price index’s growth
tackling an issue he placed visit, the two leaders grip on the economy. Mr. stalled action. Beijing, says Scott Kennedy, eased to 1.6%, from an 1.8% in-
prominently on his campaign launched a dialogue similar Trump’s aides say don’t look director of the project on crease in August.
M
economic agenda. to bilateral cabinet-level for joint market-opening an- r. Trump doesn’t Chinese business and politi- FRIDAY: The University of
Mr. Trump has tried to committees meeting regu- nouncements this week. want to jeopardize cal economy at the Center Michigan releases preliminary
check other items off that larly over the past decade. One senior White House cooperation from Mr. for Strategic and Interna- consumer sentiment data for
list: moving to cut taxes, re- official casts the dialogues as Xi in tackling North Korea’s tional Studies, a think tank. November. Consumer sentiment
T
write Obamacare, cut regula- he goal: to hash out a Chinese “rope-a-dope” nuclear program. Back home, “If the U.S. does not prior- has soared in recent months,
tion and curb immigration. trade tensions through strategy the Trump adminis- the White House doesn’t itize the challenges with reaching its highest level since
He is overhauling trade deals conversation, and to tration will no longer fall want a trade war jeopardiz- China and more effectively 2004 in October. Recent con-
with other countries—Mex- make regular joint announce- for—forums for offering sur- ing tax cuts by aggravating work with its allies,” says Mr. sumer spending figures indicated
ico, Canada, South Korea— ments of Chinese market- face tweaks staving off pres- free-trade Republican law- Kennedy, “any unilateral ac- that Americans’ rising sentiment
with bilateral trade surpluses opening measures. sure for more systemic makers. tion is likely to leave the is translating into more spend-
much smaller than China’s. The half-dozen China changes. China hasn’t even been U.S., not China, isolated.” ing. Economists surveyed by The
As for China trade, there has pledges unveiled with Trump The pugilistic reference the main focus of Mr. Wall Street Journal expect a
been talk but little action or aides in May were largely re- underscores the Trump ad- Trump’s short-handed trade Trump presses Japan on consumer sentiment reading of
clarity on administration cycled versions of earlier ministration’s vows for team. They’re deep into con- trade imbalance........................ A6 100.7 for November.
post next year having played a He will step down, however, with his colleagues, even when the Fed’s Washington-based
central role helping the central having been dogged by criti- they didn’t agree on the right board of governors.
bank respond to the financial cism that the New York Fed, path. The New York Fed faced
crisis, while drawing fire for which supervises some of the Former Philadelphia Fed further trouble when, in 2013,
not doing more to prevent an- country’s biggest financial in- president Charles Plosser was a staff bank examiner said she
other one. stitutions, was a lax regulator a frequent critic of the central had been instructed to go easy
He served as part of the even after the crisis. He re- bank’s easy-money policies, in her oversight of Goldman
Fed’s inner circle of firefight- jected the criticism but over- but he held Mr. Dudley in high Sachs and was fired when she
ers who crafted unprece- saw efforts seeking to improve regard. Mr. Dudley has been “a refused. While her claims were
dented, experimental mone- its performance afterward. The strong contributor to and be- rejected by a court, she re-
It is unclear when Sen. Rand Paul (R., Ky.) will return to work. tary policies to stabilize New York Fed didn’t respond liever in the Fed, and he took leased secretly recorded con-
markets and boost the econ- to requests for comment. very seriously the goals and versations about the matter
this type of injury is marked Mr. Boucher was released financial institutions regulated should continue gradually lift-
by severe pain that can last from jail Saturday on a $7,500 by the Fed, subject to approval ing borrowing costs to keep
for weeks to months. bond. He has a court date by the governors. price pressures contained and
“This type of injury is scheduled for Thursday. Mr. The New York Fed president prevent asset bubbles from
caused by high velocity severe Boucher didn’t return a phone is traditionally one of the cen- forming.
force,” Mr. Stafford said in an call from the Associated Press tral bank’s most powerful pol- Mr. Dudley also was central
email to the Associated Press. seeking comment. It was un- icy makers. This person serves New York Fed President William Dudley speaks at a 2015 event. in implementing multiple
The Bowling Green Daily clear if he had an attorney. as vice chairman of the rate- bond-buying campaigns. He
News reported that an arrest A spokeswoman for Mr. setting Federal Open Market the economy healed. posts just as the Trump ad- has since been a leading advo-
warrant said Mr. Paul told po- Paul said he was “blindsided” Committee and leads the su- The trio advocated keeping ministration is pushing for de- cate for the slow, passive run-
lice his neighbor came on his by the attack. Police haven't pervision of some of the na- short-term interest rates his- regulation. off of those holdings, which
property and tackled him from said what motivated the at- tion’s biggest financial firms. torically low to encourage hir- Mr. Dudley’s planned depar- began last month.
behind Friday, forcing him to tack. Mr. Dudley, a former Gold- ing and growth, but also has ture marks “further change in The New York Fed has de-
man Sachs chief economist, nudged them gently higher an institution that was already vised new methods of manag-
U.S. WATCH
started at the New York Fed in since late 2015 to prevent the experiencing considerable ing the Fed’s benchmark rate
2007, running the part of the economy from overheating. change,” said Tim Duy, an eco- in an environment in which it
institution that deals directly They also crafted and launched nomics professor at the Uni- maintains much larger liabili-
with financial markets to im- the Fed’s plan to shrink its versity of Oregon. ties. Mr. Dudley has been an
HOUSE OF REPRESENTATIVES the foreign corporation. plement monetary policy. large portfolio of bonds pur- The coming announcement outspoken advocate for main-
Mr. Brady also said that the Many of his predecessors had chased since the crisis to pro- about Mr. Dudley, 64 years old, taining a larger terminal bal-
Republicans Consider panel was reconsidering provi- markets experience. vide extra stimulus. was earlier reported by CNBC. ance sheet, an issue that hasn’t
Changes to Tax Bill sions that affect the life-insur- If that tradition continues, The Fed has penciled in one The New York Fed declined to yet been formally settled by
ance industry, and that he antici- contenders for the job include more interest rate increase comment. the central bank.
House Ways and Means Com- pated changes at some point on Simon Potter, who now runs this year, and more through
mittee Chairman Kevin Brady (R., the treatment of partnerships, the bank’s markets desk, as 2020 if the economy performs
Texas) said the panel was limited liability companies, S Cor- well as D.E. Shaw’s Brian Sack, as expected. The coming THE WALL STREET JOURNAL
weighing changes to a GOP tax porations and other “pass- who held that job before changes in the top three lead- (USPS 664-880) (Eastern Edition ISSN 0099-9660)
(Central Edition ISSN 1092-0935) (Western Edition ISSN 0193-2241)
plan ahead of a committee vote through” entities. Mr. Potter. ership positions, combined
Editorial and publication headquarters: 1211 Avenue of the Americas, New York, N.Y. 10036
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Republicans on the tax-writ- bank see a chance that its next nomic momentum, raise uncer- Periodicals postage paid at New York, N.Y., and other mailing offices.
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sidiaries in order to shift profits of a northern Philadelphia home, worked at Goldman and led NEED ASSISTANCE WITH YOUR SUBSCRIPTION?
to low-tax jurisdictions and ex-
penses to high-tax areas. Phar-
killing a 16-year-old and injuring
a 12-year-old, police said.
some of the government’s fi-
nancial-crisis rescue efforts.
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have complained about a 20%
The suspect, described as in
his early 20s, approached the
Ms. Yellen, Mr. Fischer and
Mr. Dudley worked closely to-
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THE WALL STREET JOURNAL. * * * * * Monday, November 6, 2017 | A3
U.S. NEWS
Navigator Holdings Ltd. He Senate Commerce Committee, Clinton as the party’s nominee
didn’t disclose that the com- said in a tweet Sunday that he late in the 2016 presidential
pany does millions of dollars in felt “misled” by Mr. Ross dur- race, continuing an intraparty
business—$68 million since ing the confirmation process. feud that some of her col-
2014—with a Moscow-based Mr. Ross, a private-equity leagues have deemed an un-
petrochemicals company, Sibur, billionaire, said earlier this helpful distraction.
with close ties to the Kremlin, year that he would sell at least “I was under tremendous
according to analysis by the In- 80 business assets and invest- pressure after Secretary Clin-
ternational Consortium of In- ment funds if confirmed by the ton fainted to have a quote, un-
vestigative Journalists. Wilbur Ross at a January confirmation hearing after he was nominated to be commerce secretary. Senate, but that he would hold quote, plan B,” Ms. Brazile said
Those ties were revealed on to investments in Navigator in a television interview on
this weekend in a trove of in- mea region. The Treasury De- Timchenko, saying the oligarch Commerce Department ethics Holdings and 10 other entities Sunday, adding that she consid-
ternal documents from Ap- partment’s Office of Foreign has limited influence on the officials to ensure the highest that invest in shipping and ered replacing Mrs. Clinton and
pleby, a Bermuda-based law Assets Control called him a company, and it has criticized ethical standards,” the state- real-estate financing, accord- ticket-mate Sen. Tim Kaine
firm that has handled more member of “the Russian leader- the U.S. sanctions. ment said. ing to federal financial-disclo- with Vice President Joe Biden
than 60 offshore holdings for ship’s inner circle” and said Mr. The Commerce Department As commerce secretary, Mr. sure and ethics filings. Mr. and Sen. Cory Booker after her
Mr. Ross’s company. Those Timchenko’s “activities in the released a statement Sunday Ross oversees agencies with Ross hasn’t said why he has party’s nominee fell ill at
documents were leaked to a energy sector have been di- saying Mr. Ross hadn’t been wide powers over trade and held on to those particular as- a Sept. 11 commemoration in
German newspaper and then rectly linked to Putin.” involved in Navigator Hold- the U.S.’s economic relation- sets. New York City.
shared with the journalism Sibur’s largest shareholder, ing’s decision to do business ship with foreign countries. Mr. Ross’s stake in Naviga- Democratic leaders and
consortium, a global network Leonid Mikhelson, runs an en- with Sibur and “has never met His stake in a company with tor Holdings is held through members of the Clinton cam-
of media outlets. ergy company, Novatek, Rus- the Sibur shareholders refer- ties to Russian firms that are four Cayman Islands entities, paign rejected Ms. Brazile’s
Sibur’s owners include Kirill sia’s largest private natural- enced in this story and, until the subject of U.S. sanctions according to ICIJ’s review of claims, noting that she lacked
Shamalov, who is married to gas company, which also has now, did not know of their re- could come under particular the documents. In his disclo- the power to replace a presi-
Mr. Putin’s younger daughter, been sanctioned by the Trea- lationship.” scrutiny as the U.S. has esca- sure form in January, Mr. Ross dential nominee under the
and Gennady Timchenko, a co- sury Department for its ties to The statement added that lated sanctions against Mos- valued his stake in those enti- party’s rules. On Saturday, 120
founder of the Gunvor Group, a Mr. Putin. Mr. Timchenko owns Mr. Ross “recuses himself from cow in recent months. The dis- ties as between at least $2.05 members of the Clinton cam-
Cyprus-registered commodities 23% of the company. matters focused on transoce- closure also comes just after million and $10.1 million, ac- paign signed an open letter
trading firm. Mr. Timchenko Both Gunvor and Mr. Tim- anic shipping vessels, but has the first charges and plea cording to a Journal analysis criticizing Ms. Brazile’s asser-
was among the first Russian chenko have denied any finan- been supportive of the admin- agreement were announced of the filing. Mr. Ross didn’t tions, saying “it is particularly
businessmen to be sanctioned cial connections to the Russian istration’s sanctions against last week by Robert Mueller, disclose his stake in one of the troubling and puzzling that she
by the U.S. following Russia’s president. Novatek has sought Russian and other entities.” the special counsel investigat- four companies on the form would buy into false Russian-
intervention in Ukraine’s Cri- to distance itself from Mr. Mr. Ross “works closely with ing whether Trump associates and didn’t say why. fueled propaganda, spread by
both the Russians and our op-
ponent, about our candidate’s
baked goods believing they are appeal of a red fruit in a coun- as alleged by the Clinton cam-
healthful and unique. Their in- try where that color connotes paign. “I don’t know what
creased appetite for Craisins good fortune. In addition, new 200 Donna fell for,” he said. “The
has helped vault China to the e-commerce sites in China charge that Hillary Clinton was
second-largest export market have helped U.S. companies in- somehow incapacitated is quite
for U.S. processed cranberries troduce American staples to 100 frankly ludicrous.”
in 2016, according to the U.S. Chinese shoppers. Mixed nuts Mr. Perez, who took over as
Department of Agriculture, be- are also doing well, said Ms. DNC chairman amid broad re-
hind the Netherlands. Zhang, of Kaola, which offers 0 criminations over how the
That is good news to grow- 5,000 brands from more than party treated the primary race
2011 ’12 ’13 ’14 ’15 ’16
ers in places like Massachu- 80 countries. between Mrs. Clinton and Ver-
setts, one of the nation’s top The U.S. cranberry industry Source: Department of Agriculture mont Sen. Bernie Sanders, said
two cranberry-producing has been looking to boost de- Zhang Lei, of NetEase Kaola, in a Carver, Mass., cranberry bog. THE WALL STREET JOURNAL. that the DNC has work to do to
states, along with Wisconsin. mand to help manage recent regain voters’ trust.
Local bogs now find them- large supplies. U.S. cranberry kets all the more important. port duties for dried cranber- by far the largest category of In her book, Ms. Brazile as-
selves hosting Chinese entre- production in 2017 is expected The international push is ries, according to the USDA. cranberry exports, to China to- serts that the fundraising
preneurs looking for products to be the second-largest in his- working. U.S. cranberry exports Though EU countries still taled $36 million in 2016, up agreement between the DNC
to tout back home. tory, according to federal sta- to other countries totaled $314 buy the most berries, the from $4.6 million in 2012, ac- and Mrs. Clinton’s campaign
On a recent fall day, Zhang tistics. U.S. cranberry con- million in 2016, up 49% from Asian market, led by China, is cording to the USDA. was unfair because it gave her
Lei, chief executive of NetEase sumption is up only slightly, 2012, fueled in part by the Eu- the fastest-growing. U.S. ex- —Kersten Zhang in Beijing too much influence on the
Kaola, an e-commerce company making customers in new mar- ropean Union’s loosening of im- ports of processed cranberries, contributed to this article. party’s infrastructure.
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A4 | Monday, November 6, 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
CHURCH Victims
Continued from Page One
charge,” according to court
Included
records. He was sentenced to
confinement for 12 months
and a reduction in rank.
Pastor’s
Air Force spokeswoman
Ann Stefanek confirmed that
Kelley served in Logistics
Daughter
Readiness at Holloman Air SUTHERLAND SPRINGS,
I CAN KNOW
THOUSANDS OF
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A6 | Monday, November 6, 2017 * *** THE WALL STREET JOURNAL.
WORLD NEWS
Trump Presses Japan on Trade Imbalance
President seeks press conference with Mr.
Abe. The two leaders were to
bilateral agreement on attend a state banquet in the
first leg of Asia trip, evening.
Ahead of the high-stakes
meets with premier talks, the two world leaders
kept things lighthearted.
BY MICHAEL C. BENDER “Our relationship is really
extraordinary,” Mr. Trump
TOKYO—President Donald said before dinner with Mr.
Trump increased pressure on Abe at Ginza Ukai-tei in To-
Japan for a bilateral trade kyo. “We like each other, and
deal, saying the country has our countries like each other.
been “winning” for decades And I don’t think we’ve ever
and suggesting that negotia- been closer to Japan than we
tions have drawn on for lon- are right now.”
ger than he would like. The president is set to
Trade with Japan is neither leave Tuesday morning for
fair nor open for the U.S., Mr. Seoul, the second of five
Trump said at the U.S. ambas- counties he is scheduled to
sador’s residence in Tokyo on visit on his 10-day swing
Monday. But he added that he through Asia.
was “optimistic about the fu- Mr. Trump will visit China
ture of our economic partner- later in the week. He finishes
ship.” the trip with multinational
“Our trade with Japan is conferences in Vietnam and
not free, and it’s not recipro- the Philippines.
cal, and I know it will be,” Mr. Mr. Trump said he expects
Trump said. “We’ve started to meet with Russian Presi-
the process and it’s gone on dent Vladimir Putin in South-
for a long time. And I know east Asia.
that we will be able to come “It is expected we’ll meet
And last week’s atrocity in telligence agencies and fiercely themselves in to Belgian au-
Manhattan, in which a sus- oppose systematic gathering thorities after Spanish author-
pected Islamist radical mowed of data on German citizens. ities on Friday requested their
down cyclists and pedestrians The Greens also want any extraditions following their
with a rented truck, under- additional spending focused on flight to Brussels last week.
scored the near-impossible task police head counts and cy- The ousted officials and Mr.
authorities face in preventing berdefense. And they staunchly Puigdemont are wanted in
crude yet devastating plots. A police officer guarded the court in Karlsruhe where a Syrian terror suspect was arraigned last week. oppose any increase in federal Spain on charges of rebellion,
Security experts see Ger- intelligence agency powers. sedition and misappropriation
many as particularly exposed began in late October and are Germany’s security and in- veillance, adding it is “only “We’re a long way from of public funds as part of their
because of the departing gov- expected to stretch for weeks. telligence agencies already halfway along the road” to a finding agreement,” Konstan- two-year bid to see Catalonia
ernment’s decision to open the After taking a liberal stance face some of the most severe unified approach to counterter- tin von Notz, a lawmaker for secede from Spain.
country’s doors to nearly two on immigration for years, Mrs. constraints on their preroga- rorism despite the acute threat. the Greens, said last week. The Belgian judge, after
million asylum seekers since Merkel’s conservatives now tives among Western democ- The pro-business Free Dem- Security officials say last holding hearings with Mr.
2015. Since then, security offi- want stricter checks on immi- racies, a legacy of the coun- ocratic Party, once highly sus- week’s arrest should concen- Puigdemont, the other four of-
cials have attributed most ter- gration as well as tougher ter- try’s Communist and Nazi picious of state surveillance of trate minds. The BfV domestic ficials and their lawyers, de-
rorist attacks perpetrated in ror laws and more resources dictatorships. Germany’s 16 citizens, has moderated its intelligence agency said in Oc- cided to release them under
the country to recently arrived for police and justice. The states have their own surveil- stance somewhat after recent tober that the number of po- condition that they don’t leave
migrants. party called during the cam- lance laws, making it difficult terrorist attacks, calling for tential Islamist terrorists in Belgium, the Brussels prosecu-
But how much Berlin can paign for another 15,000 po- for security services to inves- greater powers for federal se- the country had risen to 1,870 tor’s office said. Under the
harden its security stance in lice officers to be hired. tigate terrorist cells operating curity agencies and more po- from 1,600 since January. Fed- conditional release, the five
response to the mounting It also wants to centralize across state borders. lice. But the party could still eral prosecutors estimate their former officials also have to
challenges is in the balance as the work of the domestic in- Raphael Bossong, a security oppose the conservatives’ case load on Islamist terror- reside at a fixed address, at-
the three parties that have telligence agency, which is expert at the German Institute push for more broad-based ism will hit 1,000 this year, up tend court hearings and com-
pledged to try to form a coali- now largely under the author- for International and Security surveillance techniques. The from 250 last year and swelled ply with Belgian authorities’
tion government under Chan- ity of the federal states, to Affairs in Berlin said Germany FDP would also like to make it by the return of German citi- requests, the office said.
cellor Angela Merkel seek to permit better coordination needs to harmonize its security easier for federal agencies to zens from Iraq and Syria as Is- A Belgian court will make
reconcile their views. The talks across government. laws to allow for tighter sur- share information on suspects. lamic State’s empire crumbles. its first decision on the extra-
dition within 15 days. It can be
appealed twice, extending Mr.
Berlusconi Coalition Seen Edging Outsiders in Sicily Vote Puigdemont’s legal battle for as
long as two months. The ruling
of the highest appeal court, the
BY GIOVANNI LEGORANO have elected Nello Musumeci, Mr. Berlusconi’s center-right Cassation Court, will be final.
who is backed by Mr. Ber- alliance and the governing cen- Belgium is one of the few
ROME—A center-right coali- lusconi’s center-right alliance, ter-left Democratic Party. Sun- European Union countries
tion headlined by former Ital- as president of the region. day’s vote is the last important where political-asylum applica-
ian Prime Minister Silvio Ber- According to research insti- electoral test before next tions from other EU nations
lusconi appeared to have edged tute EMG Acqua, between 37% year’s parliamentary elections. aren’t routinely dismissed. Bel-
out the antiestablishment 5 and 40% of the people who cast In Sunday’s election, the cen- gium also has a history of dip-
Star Movement in regional ballots voted for Mr. Musumeci, ter-right coalition—which con- lomatic tension with Spain
elections in Sicily, according to who promised to cut red tape sists mainly of Mr. Berlusconi’s over several rejected extradi-
MICHELE NACCARI/ANSA/ASSOCIATED PRESS
exit polls, but the solid show- to help Sicilian companies and Forza Italia and the anti-immi- tions of Basque separatists
ing by both groups suggest invest in job centers to help gration Northern League—ran linked to the separatist organi-
they could perform well in na- youths find jobs. The same on a united platform, demon- zation ETA. Mr. Puigdemont’s
tional elections next year. polls showed that Giancarlo strating that they can scoop up lawyer, Paul Bekaert, success-
Sunday’s vote is widely Cancelleri, the 5 Star candidate, votes when they join forces. fully defended Basque clients in
seen as a litmus test for next garnered between 34% and Meanwhile, the 5 Star the mid-1990s and early 2000s.
year’s national elections in It- 37%. The vote count is sched- Movement shook off doubts On Sunday, Belgian interior
aly. Those elections are due by uled to start Monday morning. about its capacity to govern minister Jan Jambon criticized
May but are currently ex- Sunday’s vote effectively that have emerged in the wake the Spanish government for its
pected to be held in March. kicks off an electoral campaign of its management of Rome response to the Catalan crisis
If the final count confirms that is shaping up as a contest since winning its mayoralty and for jailing the former offi-
A woman voted at a polling station in Palermo, Sicily, on Sunday. exit polls, Sicilian voters will among the 5 Star Movement, last year. cials who returned to Barcelona.
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THE WALL STREET JOURNAL. Monday, November 6, 2017 | A7
Export Food,
Not Jobs
Anthony Pratt
Executive Chairman, Pratt Industries
Pratt Industries is one of the largest corrugated box manufacturers in the United States.
Our boxes save money and save the environment.
www.prattindustries.com
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A8 | Monday, November 6, 2017 * ***** THE WALL STREET JOURNAL.
Looming Default
May Aid Maduro
BY KEJAL VYAS from renegotiating debt with
AND ANATOLY KURMANAEV the Venezuelan government will
allow Mr. Maduro to rally his
CARACAS—A looming debt Socialist Party supporters and
default for Venezuela, long deflect blame for the country’s
seen as catastrophic for the problems by pinning them on
country’s oil-dependent econ- his ideological rivals in Wash-
omy, may yet provide a vital ington, said analysts at the risk
political boost for embattled consultancy Teneo Intelligence.
President Nicolás Maduro and “Politically, the timing of
help him consolidate power in this is not a coincidence,” said
the near term ahead of two John Polga, professor of Latin
crucial elections, bond inves- America studies at the U.S. Na-
tors and economists said. val Academy in Maryland. “If
Mr. Maduro announced they can use some of the extra
plans on Friday to convene money and nationalist rhetoric
bondholders in Caracas on Nov. to boost approval to 30-35%, all
AGENCE FRANCE-PRESSE/GETTY IMAGES
PRICES
The unusual move, while Jason Boyce, chief executive sells directly. strategies. Nike Inc. was a
good for consumers, could fur- of home-recreation retailer Sales Surge Over the past few years, holdout until this summer,
ther strain Amazon’s compli- Dazadi.com, says he has been Amazon's third-party merchants third-party sales have become when it negotiated stricter
cated relationship with big- selling on Amazon for nearly comprise an increasing portion more dominant on Amazon. controls on counterfeits and
name brands, manufacturers 15 years, and the majority of of overall sales on the site. Third-party merchants are ex- unauthorized sellers in ex-
Continued from Page One
and its own merchants. Sales his more than $20 million in pected to account for roughly change for selling some mer-
ager Amit Sharma said the by independent sellers are a annual sales stem from that $80 billion 70% of the estimated $340.71 chandise on the site.
company currently has two significant area of growth in platform. He isn’t sure billion of merchandise bought As a result, some other
units of the board game for Amazon’s retail business. whether any of his products on Amazon this year, accord- brands have decided to sell on
sale, adding that it appears It also shows how much have been marked down yet, 60 ing to FactSet forecasts. Amazon’s platform as third-
most sellers still haven’t no- Amazon is willing to pay for but said he has signed agree- Third-party goods are typi- party sellers to retain more
ticed the new discounts. The market share, part of its strat- ments with Wal-Mart and cally more profitable for the control over pricing.
practice allows the seller to egy to reinvest profits to ex- other marketplaces to main- 40 Seattle-based company, reduc- The new policy could help
Total gross merchandise
benefit as Amazon competes pand the company. Amazon tain price parity on the same ing inventory risk while in- boost Amazon’s sales. Rosa
volume
for more sales. “We are still last week posted a 34% in- products he is also selling on creasing selection. But it is Ruiz compares prices on her
receiving the same amount of crease in revenue in its most Amazon. 20 unclear how much the new phone during her 40-minute
money,” he adds. recent quarter to $43.74 bil- “At first glance, we thought price cuts, absorbed by Ama- daily commute into New York
Kn9ght didn’t immediately lion, but profit was nearly flat it was great,” he said of the Share from Amazon zon, will eat into its already City, shopping for things such
respond to a request for com- at $256 million. practice. But it would mean retail sales* thin profit margins. as toiletries and ironing
0
ment. The discounts could be a “violating our seller agree- The surge in those third- boards on Amazon, Wal-Mart
According to pages viewed mixed bag for some sellers. A ment with every other market- 2015 ’16 ’17 party sales, plus Amazon’s ag- and Target Corp. sites. If she
by The Wall Street Journal, lower price on an item that place that we sell on.” *Includes related shipping fees and digital
gressive pricing policies, has doesn’t need it fast, the sale
discounts appeared to be less matches or beats a competitor An Amazon spokeswoman media content, as well as a portion of significantly undermined goes to the lowest bidder—
than 10% and applied to items could help drive more sales at said the discount is a way to Amazon Prime fees brands’ pricing control. which frequently isn’t Ama-
from sellers using Amazon’s no extra cost to the seller. It provide low prices for custom- Sources: the company; FactSet That has caused some zon, she says.
in-house fulfillment option. might deplete inventory unex- ers while sellers receive the THE WALL STREET JOURNAL. brands, including luxury-goods “I’m a bargain shopper,”
The special offer frequently pectedly, though. And the list price. Sellers can also opt maker LVMH Moët Hennessy says the 32-year-old customer-
disappeared within days. It is lower prices could inadver- out. She declined to comment across the board, in part Louis Vuitton SE and outdoor success manager. “Sometimes
unclear how Amazon selects tently violate a merchant’s on how the company is select- through algorithms that apparel company the North there are certain things that I
which prices to lower. Sellers agreement with a brand to ing which items to discount. scrape competitors’ websites Face, to avoid selling directly wouldn’t purchase from [Ama-
said they weren’t notified of keep its products at or above a Amazon for years has been to match or cut prices on mer- to Amazon to help protect zon], but if they do drop the
the change. set minimum advertised price. helping drive prices lower chandise Amazon holds and their pricing and branding prices, I’ll buy them.”
who has what is considered website explains that its Vi- Even august news organiza- stale, says Bruce Donald, the
normal eyesight. sion 2020 is just the latest leg tions got in on the game. Re- director of an Australian con-
The etymology didn’t stop of a “timeless mission,” main- cently The Wall Street Journal sultancy called 2020 Global—
the U.S. Fish and Wildlife Ser- taining British financial stabil- began a reorganization under which doesn’t advise on any
vice from endorsing “Indian ity, that dates back to 1694. the rubric of “WSJ2020,” hav- 2020 Visions.
Rhino Vision 2020” to protect The 20/20 vision standard ing been scooped by the New New five-year plans are be-
the horned animal, which is derives from the familiar eye York Times’s earlier “Project ing drawn up. “People are al-
famed for being practically chart of stacked letters that 2020” study group. ready looking at 2023,” he says.
blind. (A spokeswoman for the decrease in size as they de- The vision spread world- That is, alas, a less eupho-
service denies it played a role scend, developed by Dutch wide, though feet are a unit of nious number. But forward-
in the project name, pointing ophthalmologist Herman Snel- measure in only a few coun- thinking consultants can start
the finger instead at the “con- len in 1862. A rhino being moved under the program Indian Rhino Vision 2020. tries. Even the bastion of the to ponder 2222. (3030 is a bit
servation community in south The idea of grandiose stra- metric system, the EU, hopped far off.)
Asia.”) tegic plans with catchy names would have to figure out “the Fla., with the theme, “Eye to on the imperial vision band- The ophthalmologists will
Branding experts aren’t im- took hold in the latter half of vision thing.” By then there al- Eye with the Future.” wagon. The European Statisti- also have to look for a re-
pressed with the naming fad. the 20th century. It posed a ready were early rumblings of Ophthalmologists gathering cal System launched its own brand. Work is under way to
“It’s probably not going to be challenge in 1987 for then-Vice a 2020 strategic boom. A Vi- in Switzerland in the late Vision 2020, to ensure it “re- hammer out a successor to Vi-
a vision, because you don’t President George H.W. Bush, sion 2020 community project 1990s didn’t spot the naming mains competitive in the fu- sion 2020, says Ms. Crook.
change your vision every three whose presidential candidacy launched in Marion County, problem on the horizon. The ture.” The EU has a separate “We will need to refocus.”
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THE WALL STREET JOURNAL. Monday, November 6, 2017 | A9
The
Reinvention
of Education
Higher education may be at the tipping point, facing challenges such as skyrocketing tuition
costs, attrition and limited job opportunities for graduates. For these reasons, Strayer University,
one of the nation’s largest educational institutions that caters to working adults, is taking a novel
approach to making college education affordable, virtual and more closely aligned with workforce
needs. While Strayer University, an institution that is celebrating its 125th anniversary this year, has
over 70 campuses in the U.S., more than half of its 48,000 students, who are mainly working adults
in their 30s, are taking all of their courses online. Karl McDonnell, chief executive officer of Strayer
Education, provides insight on where higher education is heading and how to better meet the needs
of both students and employers.
What’s “broken” in education Low college completion rates are
today? an ongoing problem. How can
Post-secondary education as it exists that be addressed?
isn’t serving students very well. There In our case, almost two-thirds or
are 42 million college graduates in the more of student attrition happens in
U.S. labor force; half of them are in jobs the first year. If students get to the
that don’t require a four-year degree. second year, their likelihood to gradu-
Probably the biggest indictment is that ate goes up four- or fivefold. What
post-secondary education expenditures we’re trying to do is completely re-
in the U.S. add up to about half a trillion engineer that first-year experience
a year — a similar amount to what com- to be more engaging. We introduced
panies spend on workforce develop- Strayer Studios, an internal filmmak-
ment each year. Companies are invest- ing arm, which turns lessons into a
ing in extensive training because they’re more dynamic experience by using
not satisfied with the caliber of skills documentary-style films. This stemmed
that American students have acquired from the pretty basic idea that online
when they graduate. Students just aren’t education doesn’t need to be boring.
workforce-ready. We thought, ‘Why is it that everybody
is thoroughly engrossed while binge-
What is your perspective on what watching shows on streaming services,
education should be? but no one has ever applied that con-
The average university sees its job as cept to education?’ So far, it’s had an
getting students to graduate. Really, the amazing impact. Karl McDonnell,
job is to engender economic mobility by Strayer’s chief executive officer
improving workplace performance and The cost of education has risen
teaching critical skills, such as thinking dramatically in the last 20 years.
on your feet, having a good work ethic What can institutions do to make What challenges lie ahead for
and engaging and collaborating with education more affordable? education?
customers. People need these skills to In late 2013, we took a huge step. While we all benefit from techno-
earn higher wages and get better jobs Enrollment was declining, and we logical advancement, technology can
in this country. So along with academic were probably guilty of too many destroy jobs faster than it creates them,
skills, we prepare students for the tuition increases. So we did two and the jobs created are completely
workforce. We hire advisors and faculty things. One was to introduce the different than the ones destroyed. So
who help shape the student experience Graduation Fund, which allows stu- how is the U.S. educational system go-
around the hard and soft skills required dents to earn the opportunity to take ing to confront this? Who is going to
to move ahead in work and in life. up to 10 of their final degree classes give 2 million truck drivers the skills to
tuition-free. Every time a student become drone operators or software
How does technology change the completes three courses, the student coders? You’re not going to be able
playing field, and what are the earns one course tuition-free toward to train and retrain a million people in
results so far? the final 10 classes needed for the brick-and-mortar centers no matter
Technology is an enormous enabler, degree. It’s essentially a 25 percent how hard you try. It will have to be
but it isn’t always properly utilized. tuition reduction and an incentive for online — and it will have to include
There’s been rapid advancement in completion. We also lowered overall partnerships with industry.
areas such as analytics and adaptive tuition by 20 percent. Taken together,
learning, while in other areas there’s it was a 40 percent tuition reduc-
been almost no innovation. The plat- tion to receive a degree. To make this
form is basically the same as it was 10 happen, we took about $50 million
years ago. If you were to look at the out of our expenses, closed 20 cam-
online courses offered by most schools, puses, combined some positions and
including top-tier universities, what you did a voluntary severance plan. You
see are videos of offline lectures that have to be willing to believe that you
are shown online. That’s not engaging can do more with less. It was the right
enough to hold the attention of thing to do, and our student body has LEARN MORE:
students today. grown every year since then.
www.strayer.edu
WSJ. Custom Studios is a unit of The Wall Street Journal advertising department.
The Wall Street Journal news organization was not involved in the creation of this content.
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A10 | Monday, November 6, 2017 * *** THE WALL STREET JOURNAL.
WORLD NEWS
an escalation of a campaign of sumed the throne in early transferred to the state. sion 2030, said Mohammed Al-
detentions in recent months. It 2015. The octogenarian mon- The government hasn’t yahya, a Saudi political analyst
comes less than five months af- arch is expected to abdicate ei- named the people who were and nonresident fellow at the
ter King Salman installed his ther later this year or early detained. Attorney General Atlantic Council in Washing-
son, Prince Mohammed bin Sal- next year, according to people Sheikh Saud al-Mojeb said ton, D.C.
man, as crown prince and heir close to the royal court. Sunday that the new anticor- “MBS has made it very clear
apparent, sending shock waves According to people familiar ruption agency “has initiated a that he will crack down on cor-
through the kingdom and stir- with the matter, another mem- number of investigations as ruption, and that he is willing to
ring internal opposition. ber of the royal family de- Crown Prince Mohammed bin Salman in Riyadh last month part of the state’s judicial duty do it from the top first,” Mr. Al-
The crown prince has vowed tained was Prince Miteb bin to combat corruption.” yahya said. “The bottom line is
to tackle corruption at the high- Abdullah, a politically influen- the removal of Prince Miteb is a Prince Miteb could face alle- Mr. Mojeb added that “sus- that corruption costs the gov-
est levels as part of the govern- tial son of the late King Abdul- precondition to the king’s abdi- gations of bribery, according to pects are being granted the ernment. We have economic
ment’s plan to overhaul the lah who led the kingdom’s Na- cation in favor of Prince Mo- people familiar with the matter. same rights and treatment as problems. …There is no way you
kingdom’s economy and free tional Guard, one of the three hammed, who is also known as He couldn’t immediately be any other Saudi citizen. A sus- can achieve Vision 2030 with-
Saudi Arabia from its depen- main branches of Saudi Ara- MBS. King Salman on Saturday reached for comment. pect’s position or status does out tackling these issues.”
dence on oil revenues. bia’s security forces. night issued a royal order firing The detentions are overseen not influence the firm and fair The plan is centered on the
At least some of those who Prince Miteb was among sev- Prince Miteb from his cabinet. by a newly established anticor- application of justice.” initial public offering of a piece
were rounded up over the week- eral senior princes who pri- “Prince Miteb was always ruption agency headed by the A lawyer familiar with the in- of the state energy firm, Saudi
end are being held at Riyadh’s vately criticized the unceremo- the prince that needed to be crown prince. The agency, vestigation said that Saudi au- Arabian Oil Co., the largest oil
Ritz Carlton, a luxury hotel that nious removal of Prince sacked before MBS becomes a formed on Saturday by a decree thorities began their probe into producer in the world. The IPO
resembles a royal palace. Just Mohammed bin Nayef as crown king. He was often viewed as a issued by King Salman, has far- alleged corruption two years could generate as much as $100
weeks earlier, the Ritz hosted a prince in June, according to leading contender for the reaching authority in cases of ago and that the Saudi govern- billion, making Saudi Arabia’s
large business conference spon- people close to the royal family. throne and is known to be very suspected corruption involving ment has already frozen assets sovereign-wealth fund the larg-
sored by the crown prince that He was the most senior prince ambitious,” said the senior public funds, including the like bank accounts belonging to est in the world.
drew some of the world’s top in- in a position of authority who Saudi official. “Some arrests, power to issue arrest warrants, the accused. —Shane Harris in
vestors and entrepreneurs to didn’t belong to King Salman’s particularly him, are more of a to impose travel restrictions “They saw money getting in Washington and Maureen
the Saudi capital. branch of the royal family. move to consolidate power and to freeze assets. the wrong bank accounts,” Farrell in New York
The hotel evacuated all One senior Saudi official said rather than to fight corruption.” “Laws will be applied firmly said the lawyer. “They can im- contributed to this article.
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THE WALL STREET JOURNAL. * * NY Monday, November 6, 2017 | A10A
the East Village “micro-school,” CEO Mark Zuckerberg and Lau- since September, his company
which opened last year, at the rene Powell Jobs, widow of Ap- had found more private and
end of this school year came in ple Inc. co-founder Steve Jobs. public schools interested in buy-
recent weeks: Earlier this fall, AltSchool is part of a “per- ing its platform, and his team
the company was hosting open sonalized learning” movement. could supply their needs faster
houses to attract families to Supporters say it helps children by cutting the number of lab
start its kindergarten through become self-directed and resil- schools it was operating.
fifth grade next September ient, which will help them in a The company is closing one
“We have finite resources,” modern workplace. Critics say school in San Francisco and one
said Max Ventilla, the com- hype about the approach has in Palo Alto as well. Remaining
pany’s founder and chief execu- run ahead of any extensive re- next fall will be two in Califor-
tive. “Closing a school is an in- search showing it works. nia and two in New York City. Students at AltSchool’s elementary school in the East Village. It will close at the end of the school year.
Little Suspense in Mayor’s Race, but Other City Contests Bring the Heat
BY MARA GAY immigrants from the Middle view. He said quality of life has is facing a tough challenge in state constitution.
East live alongside Italians and decreased under Mr. de Blasio. central Queens from Robert Proposal 2 would allow a
New York City voters will
cast their ballots for mayor on
Tuesday, a race with little fan-
fare in which Democrat Bill de
others, producing deep divi-
sions over American politics
from Mr. de Blasio to Presi-
dent Donald Trump.
51
Seats on New York City Council,
“We’re seeing people urinating
in the streets here,” he said.
Mr. Brannan has said that
while quality of life is an issue,
Holden, a Democrat running
on the Conservative, Republi-
can, Reform and “Dump de
Blasio” ballot lines.
court to remove or reduce the
pension of a public officer who
has been convicted of certain
felonies.
Blasio is expected to defeat There hasn’t been any pub- all of which are up for a vote he didn’t believe Mr. Quagli- A central issue in Council Proposal 3 would make it
Republican Nicole Malliotakis lic polling in the race. Council- one’s “apocalyptic” view of the District 30 is a homeless shel- easier for localities to use pro-
and several other challengers. man Vincent Gentile, who area would resonate with vot- ter that the de Blasio adminis- tected land in the state’s Ad-
Lower down on the ballot, holds the seat in the 43rd Dis- ers. tration had hoped to put in the irondack and Catskill parks for
other contests could be more trict, can’t seek re-election due has tried to make the race “The way that he talks Maspeth area but scrapped limited kinds of development.
competitive. The City Council’s to term limits. about Mr. Brannan’s ties to Mr. about this district, I don’t amid local opposition. Mr. Turnout is expected to be
51 seats are up for a vote, as Justin Brannan, the Demo- de Blasio, who is a polarizing know why he and his family Holden has worked to tie Ms. low, thanks in part to months
are all five borough-president crat in that race, is a longtime figure in the district. Mr. Bran- would want to live here, much Crowley to the shelter, which of polling showing Mr. de Bla-
seats, two district-attorney po- community activist who nan, 39, worked for the De- less represent the district,” she also has opposed. sio leading Ms. Malliotakis, a
sitions, and the roles of public served for years as an aide to partment of Education under Mr. Brannan said. “I’m not Voters will also have a state assemblywoman, by dou-
advocate and comptroller. Mr. Gentile. He faces stiff com- the mayor, helping implement blind to the fact that some chance to weigh in on several ble digits. A NY1/Baruch Col-
Many eyes are on the battle petition from Republican John the city’s prekindergarten ini- folks are suffering, but I think statewide ballot initiatives. In lege City Poll last week
for an open City Council seat Quaglione, the press secretary tiative. we’ve got a great community.” Proposal 1, voters are being showed Mr. de Blasio with 49%
in the Bay Ridge area of and deputy chief of staff for “He’s a de Blasio appoint- In another competitive City asked to decide whether to of the support of likely voters,
Brooklyn. It is a fast-changing State Sen. Marty Golden. ment,” Mr. Quaglione said of Council race, Councilwoman hold a constitutional conven- compared with Ms. Malliota-
swath of the city where newer Mr. Quaglione, 38 years old, Mr. Brannan in a brief inter- Elizabeth Crowley, a Democrat, tion to amend or rewrite the kis’s 16%.
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A10B | Monday, November 6, 2017 NY * * THE WALL STREET JOURNAL.
most triple the $30-a-square- pantry spaces with oversize ing the same space over time,
foot levels logged in 2008, marble islands, Miele brand said Andy Levin, senior vice
just before the commercial convection and microwave ov- president at Boston Properties.
real-estate market crashed, ens, faucets for both sparkling —Keiko Morris
according to real estate ser- The office kitchen at 145 E. 57th St. in Manhattan includes a marble island and high-end appliances.
vices firm JLL. Midtown ask-
ing rents for trophy proper- into an expectation of upscale ers are offering longer free- quarter of 2017, up almost 14% Studley. Landlords have had space more quickly and at a
ties are $107 a square foot finishes such as marble floors rent periods in addition to as- from $151.93 in 2015, accord- to up their game, offering not higher rent, said Andy Levin,
today, below the peak of $111 or counters, and pantries with suming the construction work ing to real estate services firm just prebuilt, ready-to-occupy senior vice president at Bos-
a square foot reached in 2008, top-of-the-line appliances. and costs to create ready-to- Savills Studley. spaces but custom-built ton Properties Inc., which has
according to JLL. “To attract tenants and re- occupy offices as well as cus- In the third quarter, the va- spaces at their expense. long offered prebuilt and cus-
One of the factors driving move the hurdle to relocating, tomized build-outs, brokers cancy rate for Manhattan of- “Now the tenant is saying, tomized office construction as
the tenant allowance increase which is the capital cost to and real-estate executives fice space rose 0.1 percentage ‘I don’t want to fit into your part of its leasing strategy.
is the demand for office space build out space, landlords are said. Rising construction costs point from the previous year prebuilt space, I want you to Many tenants today opt to
between 2,000 and 10,000 continuing to build out also have pushed up the to 10.7%, according to Savills build it to my specifications,’” leave building and upfront
square feet that has already space,” Ms. Wasserberger amounts landlords are spend- Studley. In addition, there is a Mr. Peck said. “So where a costs to building owners.
been built out and is ready for said. ing so they can maintain or large amount of so-called prebuilt space costs $100 a “Tenants prefer to focus on
occupancy, said Cynthia Wass- Landlord concessions at the boost rents, they said. shadow space, or space that square foot, a new building their business and leave the
erberger, a JLL executive top of the office market re- The amount Manhattan will be vacated in 18 months installation can cost landlords building of space and invest-
managing director. flect the broader rise of con- landlords spent on free rent or more by relocating tenants, $150 to $200 a square foot.” ment of capital in that space
For tenants with plenty of cessions across all levels of and tenant allowances rose to said Jeffrey Peck, executive Landlords generally expect to landlords, if they are will-
options, that has translated office buildings. Building own- $173 a square foot in the first managing director at Savills to benefit from leasing the ing to do it,” Mr. Levin said.
property criticizing a home con- that while the city had authority murder charges. ship resident suffered severe
tractor. to regulate advertising signs, Ms. Frank Walker III also faces lacerations to her upper body
Justices have scheduled a Arisian’s weren’t advertising signs. two weapons counts in the in- and was pronounced dead at
hearing for Tuesday in the case The city is appealing that ruling. dictment handed up by a Burl- the scene. A motive for the at-
of Milford resident Eileen Ari- Ms. Arisian also says the ington County grand jury. The tack hasn’t been disclosed.
sian, who in the fall of 2010 put signs are protected by free 41-year-old Wrightstown man Mr. Walker was arrested
TROUNCED: The Giants fell to 1-7 after being overpowered by up signs saying she didn’t rec- speech rights. remained jailed and it wasn’t about a month after the attack.
the Rams in a 51-17 loss. Above, Sterling Shepard misses a pass. ommend the contractor and that —Associated Press known Sunday if he has re- —Associated Press
Masterpiece:
Terry Teachout will take you behind the scenes for a private
discussion with the show’s award-winning director, David
Cromer, and cast members.
© 2017 Dow Jones & Co., Inc. All rights reserved. 6DJ6059
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THE WALL STREET JOURNAL. Monday, November 6, 2017 | A11
LIFE&ARTS
HOLIDAYS
BOOKS
Mr. Andersen, required both au- Please see BALDWIN page A12
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A12 | Monday, November 6, 2017 THE WALL STREET JOURNAL.
York. (She splits her time between crop pants and racerback tanks.
there and Washington, D.C.) They She wears Brooks Levitate sneak-
begin with active stretches, like a ers.
yoga-style ballerina pose for bal- Her home gym in Washington
ance. includes a Woodway treadmill,
With bands around her ankles, which she bought used online, and
she does quick in-and-out steps, TRX straps.
keeping her core engaged, a move
that stabilizes her back and helps The Playlist
her maintain good posture, a ca- “I’m very proud of my music
reer necessity. choices,” she says, flipping
She follows with a cardio cir- through different lists she’s cre-
cuit, doing at least two rounds of ated for vacations, the Brooklyn
about five moves, including run- half-marathon and annual running
ning backward, for 60 to 90 sec- lists.
onds each. of a compound strength move, a Ms. O’Donnell might hold TRX other and pull a 15-pound sandbag Her 2017 lists includes “Your
The heart of the workout is four jump-based or power-focused ex- straps while in a squat position through while extending her oppo- Song” by Rita Ora, “24K Magic” by
to six circuits, completed three ercise, a core-focused exercise and and jump to tap her feet or, on all site leg. Bruno Mars, and “Believe” by
times. Each circuit usually consists mobility movement. fours, thread one arm under the She does another cardio burn Mumford and Sons.
BALDWIN
in English,” Mr. Andersen wrote in
the email. The president’s refer-
ence to “the cyber” is one that has
gotten media attention, along with
Continued from page A11 “the Latinos,” “the women” and
“tougher” and “toughest.” “Loser” “the gays.”
comes in at 13. Georgetown University linguist
Mr. Andersen’s lexicon, which Jennifer Sclafani, author of the
he didn’t include in the volume, is 2017 book “Talking Donald
a roughly 12-page list of nouns, Trump,” studied the president’s
verbs, adjectives, positive adverbs, speech for two years. She notes
negative adverbs, phrases, con- his preference for “direct, unmiti-
structions and recurring themes
the co-author identified in the
president’s speech.
Mr. Andersen, who is also a
Kurt Andersen noted
novelist, says he was struck by the Mr. Trump’s tendency to
president’s references, especially
earlier on, to his late uncle, a pro-
use ‘the’ ahead of words
fessor at the Massachusetts Insti- that don’t need it.
tute of Technology.
At a July 2015 campaign stop in
Sun City, S.C., Mr. Trump said,
“My uncle was a great professor gated and personal” wording:
and scientist and engineer, Dr. “He speaks about trade deals as
MARY ELLEN MATTHEWS
OPERA REVIEW
SPORTS
NYC MARATHON
Winning Run
for Flanagan
in New York
Left, Papa John’s founder John Schnatter. Right, New York Giants quarterback Eli Manning reacts during a 51-17 loss to the Los Angeles Rams on Sunday.
BY SARA GERMANO
Oklahoma City 63 41 pc 54 34 c Edinburgh 53 45 c 49 35 r Zurich 45 38 c 46 35 r both the left and right sides of the grid.
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THE WALL STREET JOURNAL. Monday, November 6, 2017 | A15
OPINION
The Future Is Dodgeball BOOKSHELF | By Joseph C. Sternberg
I
investor in Gee, thanks for nothing.” don’t show up online, let
Lotus Development, was the Biggs agreed it was a waste of alone on Facebook or Twitter. n his memoir’s subtitle, Greece’s flamboyant former
semiconductor analyst at time. Turns out it was the To understand what’s It’s tough as a writer to admit finance minister Yanis Varoufakis—think Marxist academic
Morgan Stanley eight years best advice I would ever that subtle nuances some- with an artist wife, a motorcycle and never, ever, a tie—
before me. In the late ’80s an receive. coming, let some of times require face-to-face describes the 2015 Greek financial crisis as “My Battle With
embarrassingly lame online The thing about the future those balls whizzing conversation. the European and American Deep Establishment.” He offers a
service named Prodigy was is that, as William Goldman It doesn’t matter if you’re gripping account of those chaotic days, when the eurozone
state-of-the-art, but I had vi- wrote about screenwriting, by start to hit you. 25, 45 or 65. The industry you appeared as if it might shatter. But there’s less “deep estab-
sions of a multimedia world “Nobody knows anything.” pick to work in has more of a lishment” here than meets the eye. What emerges instead is a
with text, pictures and even- Everyone is an outsider, and say in your success than your story of miscalculations, many of them the author’s own.
tually videos delivered it’s all up for grabs. Someone think. Come up with some- job description. Same for giv- Mr. Varoufakis became a global celebrity as a member of
through vast networks. Crazy, might have an opinion, but thing fast, but don’t be too ing money away. If you want the far-left Syriza party, which came to power in a January
right? I asked Morgan Stan- there are few facts. What you stubborn to change what you to fund Alzheimer’s research, 2015 snap election. By then Greece had already suffered
ley’s uber-strategist, Barton need are your own opinions think as you learn more. Dur- you better find yourself at through two financial crises
Biggs, for advice, and he sug- about where the world is ing the personal-computer era wonky conferences going toe- and the resulting bailouts
gested we have lunch with headed in any given industry: I saw a guy, whom Bill Gates to-toe with doctors. Eventu- offered by the European
Ben Rosen. artificial intelligence, gene ed- had just introduced, standing ally, you’ll know more. Central Bank, the Interna-
I was all of 30 and way out iting, autonomous trucks, ma- by himself after showcasing I met Jeff Bezos at a tech tional Monetary Fund and the
of my league, but we still rine salvage—whatever. the first truly high-resolution conference about a decade other governments of the euro-
trucked over to the Pan Am You need to go to places videogame. I chatted him up ago and mentioned that I had zone (a combination known as
Building for a New York where the future is dis- and he has been a friend for just self-published a book and the troika). Such was the after-
power lunch. I explained this cussed. Every industry has life, showing me not only used his Amazon Advantage math of Athens’s decadeslong
multimedia thing. Mr. Rosen these events. Make the time where technology is headed program to sell it. He pro- inability to balance its budget or
waved his hand and said in to go. And not only to hear but the path it takes. ceeded to grill me like a even publish honest numbers
the nicest way, “I really don’t keynoters billow hot air, but It’s not classic networking steak, asking what was wrong about what the budget was. A
know anything about that.” I for the panel discussions but a network of ideas. The with it and what features he large portion of its deficits had
looked at Biggs, gulped, and where people disagree. The goal is finding a new way to should add. I’m convinced he been financed by French and
asked Mr. Rosen for advice in conversation spills out into think, to filter news over time keeps winning because he en- German banks, but their balance
general. He told me about the hallways between talks. as the future takes shape in joys being hit with dodge- sheets would not have survived a Greek
building his venture-capital There will be all sorts. The fits and starts. It never hap- balls. He famously left New default, so in 2010 a bailout of €110 billion was arranged to
firm and running into inves- smug ponytailed guy who pens in a straight line. Hy- York a retailing outsider with prevent a crisis. But the banks were the big beneficiaries of
tors on Sixth Avenue. talks about his Phish tribute draulic fracturing has been an idea to sell books. Balls the bailout; Greece barely benefited at all. By 2012 another
Then he rambled on about band and insists he knows around and argued about whizzed by until they hit. He €130 billion was needed to bail out the first bailout.
getting in the middle of everything. The woman you since 1947. Anyone had a now has the ultimate inside The bailouts consigned Greece to years of misery. The first
things at events, conferences see at every event but only in chance to study this future of view. one required Athens to cut spending, raise taxes and pay down
its debt. The second was only slightly more forgiving. Both also
demanded economic reforms, such as privatizations and
The Latin Left Hijacks Human Rights deregulation, but the reforms never materialized, so the
economy barely grew. By 2015 Greece’s economy had contracted
roughly 25% from its precrisis level.
An effort by who fought guerrilla terrorism Che Guevara in Bolivia. While to restore the rights of many This set the stage for a young radical, who argued that
the Organiza- and are imprisoned in violation there, he said, he complained Argentines—not only military— Greece could free itself from what Mr. Varoufakis calls
tion of Ameri- of their civil liberties. to the government about its who were rounded up during “Bailoutistan” by forcing creditors to accept a less exacting
can States’ In- She told me in an email that failure to form a “truth com- the hard-left Kirchner govern- deal. In a stunning election victory, 40-year-old Alexis Tsipras
ter-American when her colleague Guillermo mission” to investigate the ments (2003-15) and imprisoned became the country’s prime minister, his Syriza party coming
Commission Fanego rose to speak about the Guevara’s death and had of- without proof of a crime but within two seats of a government majority.
AMERICAS on Human importance of “complete” mem- fered technical assistance from merely because they opposed In Mr. Tsipras and his finance minister, Mr. Varoufakis,
Rights to patch ory—that is, recognizing vic- the commission to do it. the terrorists years ago. frustrated and impoverished Greeks could hardly have picked
By Mary
old political tims on both sides of a con- This was strange coming Ms. Barreto claimed that worse champions. As political outsiders, Syriza should have
Anastasia
hatreds got off flict—he was shouted down. from a human-rights advocate, the Argentines “spoke on the led an effort to tamp down domestic corruption and focus on
O’Grady
to a bad start The Argentine daily La Nación Ms. Werlau noted in her email, same terms as the other par- a fairer distribution of welfare benefits and government
in Montevideo, confirmed that account. In an given that Guevara’s own writ- ticipants,” which is patently wages, reforming Greece’s long-running patronage politics.
Uruguay, two weeks ago. The editorial on Oct. 27 it described ings endorsed “killing, hatred, false because no other partici- Instead, Mr. Varoufakis challenged the troika in a doomed
commission deserves most of the assaults against the Argen- violence, repression, racism and pants were shouted down and renegotiation of the bailout terms, spooking investors, who
the blame. tines as “loud boos, insults, homophobia.” Cuba Archive has expelled. had tentatively started buying Greek bonds again, and Greek
What it calls a “memory, threats and shoving, which gen- documented 98 extrajudicial ex- Ms. Barreto explained the savers, who then started pulling their money out of the banks.
truth and justice” curriculum erated an unfortunate climate of ecutions directly ordered by expulsion on grounds that the Soon ATMs were out of cash, the government’s coffers were
for 2018-19 is an attempt to re- violence and intolerance.” Guevara after Fidel Castro took Argentines had objected to be- empty and Athens was forced to sign a third bailout deal.
call, recognize and record hu- Ms. García told me that the power in 1959. ing segregated into a specially
man-rights violations and rec- moderator, commission execu- designated breakout group.
oncile societies. But what tive secretary Paulo Abrão, This generated “a reaction on Greece’s former finance minister recounts his
transpired in Montevideo dem- was complicit in his silence The Inter-American the part of the participants fight in 2015 against the demands of Berlin,
onstrates how despised truth- during the uproar. Later, she themselves.” The implication
seekers can be among the told me, he announced that the Commission meeting being that the Argentines were Brussels and the European establishment.
Latin American left, which has curriculum will deal only with was about revenge, not proper participants.
hijacked the term “human abuses committed by states. In fact the prearranged
rights” for its own political This, Ms. García noted, is “in not reconciliation. breakout groups had innocuous Mr. Varoufakis insinuates that, while he represented the
purposes. clear contradiction to the pos- nonpolitical titles like “mem- Greek democratic will, the troika was bent on bringing Greece
The event brought some 250 tulates” of the commission. ory politics,” “archives and ac- to its economic knees. “Debt is creditor power,” he writes.
rights advocates together at the Another witness noted that the On Friday consultant Renata cess to information” and “jus- “The Greek Spring challenged the right of creditors and their
Four Points Sheraton hotel for a Venezuelan Marxists were not Barreto Preturlan at the Human tice and the struggle against domestic agents to govern a debtor nation.” As if any
public consultation on the cur- cut off when they accused ci- Rights Commission answered impunity.” Banishing the Ar- creditors wanted to run Greece. This misinterpretation
riculum. That representatives of vilians in their country of hu- my request for comment. She gentines was an act of blatant proved central to Mr. Varoufakis’s undoing.
the Venezuelan Marxist dicta- man-rights crimes. described the Argentines as discrimination. In reality, the creditors faced as many pressures as Mr.
torship were present gives you Moreover, Mr. Abrão did not “representatives and relatives Ms. Barreto closed her re- Varoufakis did. The bailouts represented the sort of delicate
some idea of the leftist tilt. But intervene when a Chilean called of military officials condemned sponse by noting that the com- compromise at which the European Union excels. Northern
there were also six Argentines— for a show of hands to expel the for or accused of human rights mission “is not responsible for European taxpayers showed their solidarity by reluctantly
lawyers and representatives— Argentines from the meeting, violations during the Argentine the attitudes of third parties in opening their wallets, while Athens kept faith by reluctantly
from two human-rights groups which is what transpired. dictatorship.” its activities.” Yet surely it has reforming itself. In 2015 this compromise was in political
dedicated to equality under the Commissioner Paulo Van- This is certainly not an accu- a role in protecting minority danger. The Alternative for Germany, for instance, a vigorous
law and due process. nuchi gave shout-outs to leftist rate description of Ms. García’s viewpoints and defending the new antieuro party, was putting increasing pressure on Ber-
María Elena García is presi- groups, according to partici- group. Its emphasis on “com- rights of all to speak and en- lin to cut weaker members loose.
dent of the Collective for the pant María Werlau, executive plete” memory is a plea to clar- gage in the process. Judging Thus one can imagine the exasperation among eurozone
Defense of the Human Rights of director of the U.S.-based non- ify the country’s history leading from this first meeting, it looks finance ministers when Mr. Varoufakis flounced into their
Persons Deprived of Freedom governmental Cuba Archive. up to and during the military as if its work has already been first summit meeting declaring that, “whether they liked it or
and Access to Justice in Argen- She told me in an email that dictatorship because thousands compromised by the left and not, [they] were obliged to respect the fact that the Greek
tina. The organization works to Mr. Vannuchi also spoke about of victims of guerrilla terror- will turn out to be more about voters had given us a mandate to challenge” the terms of the
secure due process and humani- the honor he felt at attending ism from that period have revenge than reconciliation. bailout. What Mr. Varoufakis doesn’t acknowledge is that the
tarian treatment for Argentines a recent memorial event for been denied justice. It works Write to O’Grady@wsj.com. bailouts had been signed by Greece’s duly elected
representatives. The creditors weren’t about to let the Greeks
simply change their minds.
An EU Plan to Invade U.S. Markets But the Greeks could have always changed their minds—they
could have left the euro. Mr. Varoufakis says that although a so-
called Grexit would have been disastrous for Greece and the
By J. Christopher One proposal would em- grocery stores, the cost of regulation of American finan- eurozone, his party had to be prepared to leave the euro if
Giancarlo power ESMA to demand on- home heating, and mortgage cial companies, it would set a negotiations failed. Contrary to Syriza’s reputation for reckless-
T
site inspections of U.S. busi- interest rates. Farmers and dangerous precedent—poten- ness at the time, Mr. Varoufakis did an impressive amount of
here’s been much worry nesses such as the Chicago ranchers could experience tially opening the door to all planning for Grexit. He devised a clever mechanism for a paral-
about the impact of Mercantile Exchange without cost increases to manage the manner of other interference. lel digital currency to temporarily replace the euro, pending the
Brexit on British and informing its primary regula- risks of their businesses from The European Union favors a reintroduction of the drachma, on the theory that only a
European banking and capital tor, the U.S. Commodity Fu- unpredictable weather to fluc- highly prescriptive and rules- credible threat could draw creditors to the negotiating table.
markets. It may seem that tures Trading Commission. tuating prices in livestock based approach to financial But for all his financial acumen, Mr. Varoufakis was—and,
U.S. markets are protected feed. Without firm, exact and market supervision in contrast to judge by his memoir, remains—a political naif. Not even
from that uncertainty, but clear limits on their applica- to the U.S. principles-based the threat of Grexit could have upset the creditors’ consen-
they aren’t. If the European In response to Brexit, tion to American businesses, approach. sus. And as much as the Greeks hated the bailouts, they, too,
Union mishandles Britain’s Brussels looks to these European proposals Undoubtedly Brexit raises concluded that they would be worse off leaving the euro.
exit, the consequences for could dry up the capital nec- challenging issues for the That’s worth remembering when it comes to Mr. Tsipras.
U.S. businesses and consum- expand its reach. essary for growth and job EU’s regulation of its finan- Mr. Varoufakis saves his most bitter criticism for his former
ers could be serious. creation. cial markets. Here in Amer- boss, who, he says, abandoned their plan to proceed with
Brexit will put London’s fi- The CFTC, of which I am ica we have seen how bur- Grexit if necessary. Mr. Tsipras, he writes, was prone to
nancial markets outside the Another proposal would en- chairman, is focused on en- densome economic “frivolity” and a selfish “intense desire to prove to a sceptical
European regulatory um- able the ECB to impose addi- suring that American finan- regulation has thwarted the world that he was no shooting star.” That’s one read. Another
brella. As a result, the Euro- tional regulations on those cial markets thrive and are revival of broad-based pros- is that the prime minister eventually bowed to the reality
pean Commission has pro- same U.S. businesses—again well-regulated. That cannot perity. The American people that Greeks wanted the euro.
posed authorizing regulation without informing or consult- be done if the EU second- have rejected that approach In the end, Mr. Varoufakis resigned, and Mr. Tsipras caved.
of financial entities outside ing the CFTC. guesses American markets and demanded that financial A third bailout agreement was scraped together, offering €86
the EU by the European Cen- Such overlapping and unco- and how businesses operate— markets contribute to eco- billion for the same economically illogical conditions. Today
tral Bank and the European ordinated regulation by the EU taking partial control of the nomic recovery. The last Syriza clings to power, a dysfunctional shadow of its former
Securities and Markets Au- would be disruptive, expensive American economy, or worse, thing Americans want is to self, and Greeks, who have already lost nearly a decade to
thority, the EU’s markets and detrimental to the U.S. letting the Europeans call the have overseas regulators im- their crisis, face losing another decade or more.
watchdog. The proposal trading markets and economy. plays. The solution to slug- pose European costs and reg- A better deal for Greece may exist, but Mr. Varoufakis was
would reach far beyond Lon- Imagine a football game with gish growth and stagnant ulatory burdens on the never the one to propose it. Even in his own book he appears
don. It would subject key U.S. two quarterbacks on the field wages is vibrant global mar- American economy. as a hapless academic cursed by prodigious knowledge and
financial institutions to Euro- vying for control of the ball. kets for investment, not unco- limited wisdom. No wonder it all went so terribly wrong.
pean law and regulation— These proposals have the ordinated and overlapping Mr. Giancarlo is chairman
even when they serve U.S. potential to affect the avail- regulation. of the Commodity Futures Mr. Sternberg is a member of the Journal editorial board
customers. ability of food in American If the U.S. accepts European Trading Commission. based in London.
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A16 | Monday, November 6, 2017 THE WALL STREET JOURNAL.
OPINION
REVIEW & OUTLOOK LETTERS TO THE EDITOR
Tax Rate Cleanup in Aisle Two Are We Coming at Opioids the Wrong Way?
Y
ou know Republicans are intellectually no big deal because these taxpayers can afford Regarding your editorial “The Opi- job,” as if they are not already strug-
confused when they send out press re- it. They’re also claiming this is kosher because oid Puzzle” (Oct. 27): The innovation gling under current mandates, which
that is most needed to help end have been made ever-more stringent
leases defending a top marginal in- the 1986 Reagan reform also had a bubble rate
deaths from opioid drug use is de- for patients and practitioners alike.
come-tax rate of nearly 50%. of 33% in addition to a top rate criminalization of drug use. The con- CARRIE COX
Yet that’s what they were up The Senate needs to of 28%. But a bubble rate of tinuing “war on drugs” is a war on Lexington, Ky.
to this weekend as they tried kill the House GOP’s 33% is a lot lower than 50%, our entire society. We turn addicts
to justify their bubble bracket which was the top rate before into criminals who steal from us, If we are serious about pursuing
tax rate of 45.6% after our stealth tax surcharge. Reagan’s 1986 reform. spread hepatitis and HIV infections, innovative approaches to drug abuse,
criticism on Saturday. And as we wrote at the fill up our jails and die at ever-in- we first have to acknowledge the
We called it a stealth tax time (“Gephardt Soap Bub- creasing rates. failure of our punitive, moralistic
rate because it’s buried in the fine print of the ble,” Sept. 25, 1989), Reagan’s bubble rate was Illegal drug abuse also fuels ter- war on drugs and adopt, as some Eu-
Ways and Means proposal. It also isn’t part of also a mistake. It greased the skids for raising rorism and violence around the ropean countries have, the practical,
the tax simplification story Republicans are the top marginal rate to 31% from 28% as part world through drug cartels and open-minded, nondogmatic mind-set
opiate production in China and Af- that is the prerequisite to any form
selling by publicly claiming the House reform of George H.W. Bush’s tax increase in 1990.
ghanistan. of innovation.
shrinks the individual code to four rates from Democrats argued then that the wealthiest In countries like the Netherlands, MICHAEL R. UTH
seven. But caught out by our reporting, they are shouldn’t pay a lower marginal rate than the Switzerland and Portugal, drug use is
now denying that the fifth rate is stealthy while merely affluent, and the bipartisan deal was the treated as a social problem not a The first issue is the readily avail-
defending it as good policy. 31% top rate for everyone. criminal problem, and drug abuse, able (and cheap) supply of illegal fen-
The 45.6% is a bubble rate because it applies If the Kevin Brady-Paul Ryan 45.6% bubble criminality and drug-overdose deaths tanyl and other narcotics on the
to tax-filing couples who make between $1.2 bracket becomes law, this will soon become the have all decreased. street.
million and $1.6 million (above $1 million for new top rate for everybody—perhaps when THOMAS EINSTEIN The second issue is the lack of
single filers). The surcharge is intended to claw Nancy Pelosi is Speaker after 2018. Santa Monica, Calif. drug-treatment facilities. I am a
back any benefit these filers get from the new The other Republican defense is that this practicing pain physician with sev-
The only “puzzle” that I see is eral patients who need comprehen-
12% income bracket that applies to income of bubble surcharge raises some $50 billion over
why—with mounting evidence sive drug rehab. The drug-rehab fa-
less than $90,000 for couples ($45,000 for sin- 10 years to pay for pro-growth tax cuts else- around its efficacy—cannabis is cilities are few and far between,
gle filers). where. But these rate increases never raise never mentioned as part of the solu- frequently full and have significant
Republicans apparently think it’s unfair for what they claim because people change their tion to the opioid epidemic. Despite restrictions for admission, including
people to pay the same rate on the same dollar behavior. The political truth is that the esti- proven cost savings in the hundreds financial coverage and lack of coex-
of income. So their surcharge applies the 39.6% mated surcharge revenue is really going to fi- of millions of dollars for Medicare isting medical conditions.
rate to those first dollars of income for those nance the huge increase in the family tax credit Part D in states that allow medicinal Many who are given naloxone are
more affluent taxpayers, which adds about six- that costs $640 billion over 10 years. This fam- cannabis, a 25% reduction in over- repeat offenders and get no treat-
percentage-points to the top rate and gets to ily credit will also be refundable over time, doses in the same states and over ment after being rescued from an
the 45.6% bubble rate. which means it will be paid as a welfare check 97% of patients stating that they overdose. I believe that if someone
Add that to the 3.8% ObamaCare surcharge to people who don’t pay taxes. were able to decrease their opioid receives naloxone once, he or she
use, the word “cannabis” is missing should be required to receive inpa-
that Republicans are keeping as part of tax re- In other words, Republicans are embracing
from the lexicon of the president and tient narcotic rehab therapy—hard to
form, and these taxpayers would now have a top higher tax rates a la Democrats to redistribute most major news outlets. do if those facilities don’t exist or
marginal rate of 49.4%. Add state and local the money to non-taxpayers a la Democrats. Re- PERRY SOLOMON, M.D. won’t accept patients.
taxes, which would no longer be deductible mind us again why college-educated suburban- San Francisco We need to prescribe narcotics
against federal taxes (a policy we support), and ites who are successful in business or the pro- less and stop Medicare’s increasing
these mostly Republican voters would in many fessions and are unenthralled with Donald Lost in all this are the poor, pow- restrictions on interventional pain
states pay a marginal rate (on the next dollar of Trump should vote Republican? erless and often older pain patients treatment (read nonnarcotic). But
income) close to 60% and an effective rate (total The best solution would be for Ways and whose lives are made more func- let’s not forget the patients with
share of income) higher than they do now. Keep Means to clean up this surcharge mess when it tional and tolerable with the moni- chronic pain who may be hurt in this
in mind this is Republican tax policy. marks up the bill this week. Failing that, we tored law-abiding use of opioid medi- war on narcotics.
It’s no surprise, then, that Republicans are need a cleanup in aisle two, which is the Senate cation. In reality, many live in fear of JAMES TOBIN, M.D.
being cast off to “get clean and get a Madbury, N.H.
resorting to Democratic arguments that this is Finance Committee.
A
uthoritarian governments tend to be All the more so given that Iran will try to ex- The Balfour Declaration didn’t clear that a Palestinian state in the
most vulnerable when they are trying ploit any instability. That’s the message sent by stop Arabs from living in Israel with West Bank will not end the conflict.
to change, so the weekend events in the resignation of Lebanon’s Prime Minister equal rights, and today Israel has a If there are apologies due, it is
Saudi Arabia are worth watch- Saad Hariri Saturday on a trip population of at least 20% Arab citi- from Palestinian leaders to their fol-
ing for more than the usual Weekend events show to Saudi Arabia. He said he zens with full religious and other lowers for rejecting every peace
rights (“100 Years After Balfour, Dec- deal, inciting violence, for corruption
royal family Kremlinology. the Middle East feared an assassination plot
larations of Division,” Review, Oct. and backward-looking policies that
They reflect the drive for and he blamed Iran for caus- 28). It isn’t the Jews’ fault that the are the primary reasons for Palestin-
Saudi reform and the contest conflicts to come. ing “devastation and chaos.” Arab world couldn’t tolerate that ian victimhood. It is high time to
between the Saudis and Iran Iran and its Hezbollah militia small Jewish presence. At least as hold them accountable and stop re-
for regional influence. in Lebanon blamed the Saudis many Jews fled from Arab countries warding their intransigence with
Saudi authorities made a wave of arrests Sat- and U.S., and the resignation ends the alliance as the number of Arabs who fled sympathy.
urday, including members of the royal family between the Sunni Muslim Mr. Hariri and the when the state of Israel was created, DORON LUBINSKY
and cabinet members. The targets include Prince Shiite Hezbollah. Israel welcomed the resigna- but instead of helping and integrat- Atlanta
al-Waleed bin Talal, a billionaire investor in Ap- tion, and one reading is that this will open the ing the Palestinian Arabs, as Israel
ple and Twitter and once a major investor in the way for Israel or Saudi Arabia to attack Hezbol- did with all the Jews who went to Is-
Journal’s parent company, News Corp. lah to reduce its growing influence in Syria and rael, the Arab countries have kept The Mueller Tax Indictment
the Palestinians as bitter pawns and
The arrests are being advertised as part of the Levant.
limited their rights.
May Yield More Information
an anti-corruption campaign endorsed by Meanwhile, the Saudis shot down a missile If Palestinian Arab leaders really Regarding your editorial “The
Crown Prince Mohammed bin Salman, who is aimed at Riyadh that was fired from Yemen by wanted to help their people, they Manafort Indictment” (Oct. 31): You
trying to consolidate power as the heir appar- Houthi rebels allied with Iran. The missile launch would stop playing the victim card should have started and ended with
ent to his father, King Salman. The Crown shows the Houthis are far from defeated in their for so many years and so many mil- noting that Americans deserve to
Prince has been making enemies among royals war with a Saudi-led coalition in Yemen. lions of dollars later. Israel has been know what the Russians did and
no longer in favor and the arrests are a sign that Behind all this is the effort by Iran, backed willing to cooperate with its neigh- how, and that our leaders will take
he is brooking little dissent as he tries to reform by Russia, to exploit the opening created by the bors for peaceful coexistence, but immediate steps to see it doesn’t
the Kingdom’s economy and even some of its fall of Islamic State to dominate the region. Is- the Arab world has chosen to con- happen again. You know what the
social mores. While the U.S. has a stake in the rael and Saudi Arabia can’t let that happen, and tinue treating the Palestinian Arabs goal of the investigation is.
Kingdom’s successful evolution, the arrests are with the U.S. seemingly on the sidelines, expect as homeless victims rather than George Papadopoulos’s plea re-
move on and work toward a peace- veals that the Russians were offer-
a sign that the transition will be rocky. more conflict to come.
ful Palestinian state living alongside ing him dirt on Hillary Clinton
Israel. weeks before the Democratic Na-
R
that the dirt they were offering
epublicans are looking under every seat the Trump Administration withdrew. If anyone deserves an apology him? Was that the dirt they were
cushion to finance tax cuts and the po- We think CBO has long overestimated the over the Balfour Declaration, it isn’t offering Donald Trump Jr. when he
litical bribes that Members of Congress power of the individual mandate in driving cov- the Arabs but the Jews. If anyone set up the meeting with the Russian
are demanding for their votes. erage. And its faulty estimates should apologize over events since, attorney, Paul Manafort and Jared
One surprising potential “pay How killing the hurt the GOP during the it is Palestinian leaders to their fol- Kushner?
lowers, not Britain or Israel. The Mr. Manafort may know, and the
for,” believe it or not, would individual mandate ObamaCare repeal debate by
Arab world received more than four- pressure of this indictment will
be repealing ObamaCare’s in- overestimating the number fifths of the land promised to the help him remember. We know from
dividual mandate. can finance rate cuts. who would lose coverage. But Jews under the Balfour Declaration his tax-fraud indictment that he is
The IRS administers the now those estimates can help in the form of Jordan, the West Bank dishonest, cunning and devious.
mandate, which ObamaCare the GOP in the tax debate be- and Gaza. The Arab world rejected a Had he not joined President
euphemistically dubbed an “individual respon- cause CBO says an end to the mandate will two-state solution in 1948 and in- Trump’s campaign, he would have
sibility payment.” But Chief Justice John Rob- mean fewer Americans would sign up for insur- vaded Israel, promising to annihilate most likely gotten away with evad-
erts called it a tax to declare it constitutional, ance and subsidies. the Jews. It is much of the Arab ing millions in taxes. We Americans
so a policy and fiscal nexus exists. The fear is that this would complicate the world that continues to reject a per- deserve to know what he knows
ObamaCare requires individuals without political task of passing tax reform by combin- manent Israel behind any boundar- about what his clients in Russia
health coverage to pay the greater of 2.5% of ing it with the ill-fated ObamaCare repeal de- ies. Why do they deserve an apology were doing to interfere in our 2016
for rejecting coexistence and perpet- election. Without the tax-fraud in-
their household income (above the $10,350 fil- bate. But in this case the GOP would not be
uating the refugee issue? dictment, he would never tell us.
ing threshold for single adults in 2016) or $695. changing Medicaid or cutting spending. It Palestinian leaders have rejected Now maybe he will.
The tax is regressive in that about 96% of pay- would be changing no rules or mandates other every peace deal and continue to in- JERRY D. PALMER
ers were households earning less than than the individual purchase requirement and doctrinate for endless conflict. Their San Diego
$100,000. Most high earners are covered by em- tax, which are among the least popular parts obsession with dismantling Israel far
ployer plans or Medicare. of the law. Republicans would merely be saying exceeds their desire for statehood,
While the penalty raised $3 billion in reve- that they would no longer fine Americans for and Mahmoud Abbas has made it Pepper ...
nue in 2015, Arkansas Senator Tom Cotton refusing to buy a product they don’t like or And Salt
points out that abolishing the mandate would can’t afford.
actually be a revenue gusher under the Con- Killing the mandate now would also make
CORRECTION THE WALL STREET JOURNAL
gressional Budget Office’s scoring rules. Last it easier to revisit health reform next year.
No employees or former employees
December CBO projected that repealing the With the mandate already gone, CBO would al-
of Crowley Maritime Corp. pleaded
mandate would save $416 billion over 10 years most certainly find that there would be fewer guilty, were convicted or went to prison
because fewer people would sign up for Medic- uninsured under any new reform the GOP in connection with the company’s 2012
aid or receive subsidies on the exchanges. would propose. plea deal with the U.S. government for
Fewer workers might also enroll in employer- As for financing tax reform, Republicans price-fixing. An Oct. 31 letter to the edi-
sponsored plans, which could result in more have to consider the alternatives. The House tor, “The Jones Act Has Enabled Price
taxable compensation. bill doesn’t repeal the mandate and thus has Fixing in Recent Past,” mistakenly im-
CBO estimated in July that a combined re- to include “pay fors” that are either bad pol- plied that some executives had gone to
peal of the employer and individual mandates icy (see the stealth tax rate above) or that prison.
would yield $275 billion in savings. The agency face political resistance (ending the adoption
didn’t break down its score or explain its analy- tax credit). Letters intended for publication should
sis. A future score might project greater sav- In a Senate with only 52 Republicans, count- be addressed to: The Editor, 1211 Avenue
of the Americas, New York, NY 10036,
ings—Mr. Cotton estimates around $300 bil- ing votes is paramount, but ending the hated or emailed to wsj.ltrs@wsj.com. Please
lion—since next year’s average premium tax individual ObamaCare mandate looks like a include your city and state. All letters
credit has ballooned by 45%. That’s because in- winner politically and as fiscal and health pol- are subject to editing, and unpublished “Here are my notes on collateralized
surers jacked up prices on benchmark silver icy. Why not combine health-reform progress letters can be neither acknowledged nor debt obligation. Make me sound like
returned.
plans to make up for cost-sharing subsidies that with a way to finance tax reform? I know what I’m talking about.”
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
THE WALL STREET JOURNAL. Monday, November 6, 2017 | A17
OPINION
T
product outweighs the adverse effect What about tax reform’s effect on
he debate over tax reform of the $1.5 trillion increase in the na- the budget deficit and the national
is focusing on all the tional debt. The government’s interest debt? I have long been a deficit hawk.
wrong things: the personal cost on the extra debt will be substan- It is troubling that America’s ratio of
rates and the deduction for tially less than $100 billion a year, and debt to GDP has more than doubled
state and local taxes. What the potential rise in the annual trade in the past 10 years and is projected
will truly matter for the economy is deficit will be less than 0.5% of GDP. to increase from 77% today to 91% in
corporate tax reform, which will lead The $500 billion gain in total in- a decade, even with no legislated
to a major increase in capital spend- come is the right measure for evalu- changes in taxes or spending. An ex-
ing by companies. That in turn will ating the tax reform. It’s wrong to fo- tra $1.5 trillion of debt will raise that
raise productivity and real wages. cus on the resulting change in the ratio to 96%. But I believe the advan-
rate of economic growth, as some tages of the corporate tax reform
critics have done. Even though an an- outweigh the adverse effects of the
It could increase the U.S. nual gain of $500 billion by 2027 relatively small debt increase.
translates to a substantial $3,500 in The challenge for the Congress af-
capital stock by $5 trillion income per household, the implied in- ter the next election will be to start re-
and cause a $500 billion crease in the growth rate is surpris- versing the rise in the debt. The debt-
DAVID GOTHARD
ingly small. Since GDP is projected to to-GDP ratio, which was 35% as
rise in annual income. be $30 trillion in 2027, a $500 billion recently as 2007, is heading to more
increase represents a gain of 1.7%, or than 100%. But cutting future annual
just 0.17% per year over the decade. deficits from the projected 5% of GDP
These gains start small but will The most important reform is to to 3% would reverse that trend, caus-
grow year after year as capital flows cut the corporate tax rate from 35%— low-productivity uses in agriculture companies bring back cash from for- ing the ratio to head back toward
to corporate investment in the U.S. the highest among major industrial and housing to corporate investments eign subsidiaries as it is earned. about 60%. That would be a useful
from the rest of the world and from nations—to 20%. This will increase that can create good jobs and raise In addition, tax reform will help next step toward a fiscally responsible
other parts of the U.S. economy. Al- corporate capital directly by reducing real wages. This will be reinforced by bring home some of the $2.6 trillion condition for the U.S. economy. But the
though it is hard to judge how much the tax burden. Cutting the corporate reforms that induce American corpo- that U.S. companies already hold first step is to put tax reform into law.
the U.S. capital stock will grow, a rea- rate to 20% would raise retained earn- rations to bring back profits earned abroad because of today’s unfavorable
sonable estimate is that tax reform ings by about $2 trillion over 10 years. by their foreign subsidiaries. Under taxation of repatriated profits. The Mr. Feldstein, chairman of the
will raise the U.S. capital stock by $5 The lower tax rate will also induce the proposed reform the U.S. will fol- GOP plan includes a one-time moder- Council of Economic Advisers under
trillion within a decade, causing an- foreign companies to shift some of low the practice of nearly all other ate mandatory “deemed repatriation” President Reagan, is a professor at
nual national income to rise by $500 their production to America. And countries in adopting a “territorial” tax on those profits accumulated Harvard and a member of the Jour-
billion—equal to $3,500 a household. capital within the U.S. will move from tax system. This will make American overseas, after which the funds can be nal’s board of contributors.
D
marker of what war will cost Pyong- jing isn’t the product of any newly term challenge posed by China’s rise. Philippines, President Rodrigo Duterte
onald Trump’s 12-day trip to yang: everything. benevolent view of America. On the Here the key is America’s alliances in appears to respect Mr. Trump, in con-
Asia—on Monday he will be in Previous presidents’ policies to- contrary, pressure from the U.S. has the Pacific—another central element trast to his disparagement of Presi-
Japan, followed by stops in ward North Korea were naive in the helped to cause the turnaround. The of the presidential tour. Mr. Trump’s dent Obama.
South Korea, China, Vietnam and the extreme. Neither the Agreed Frame- Chinese have heard Mr. Trump’s closest friendship with any foreign Both countries, though, pose
Philippines—is the longest presiden- work in 1994 nor the “six party sharp criticisms of their trade and leader is the one he has quietly culti- problems: Vietnam remains under
tial visit to the region in a genera- talks” last decade prevented Pyong- currency policies. But despite his vated with Japanese Prime Minister the unflinching control of its Com-
tion. That’s no accident: Although yang from getting nuclear weapons. Shinzo Abe. The two speak almost munist Party, and Mr. Duterte has
many in Washington see only Mr. Mr. Trump rightly believes rushing weekly. Mr. Trump has made clear earned condemnation for his govern-
Trump’s disruption, Asian leaders into new negotiations would further At least when it comes that a strong Japan improves re- ment’s extrajudicial killing of drug
know his administration has brought enable North Korean deception and gional stability, and Mr. Abe contin- traffickers. Mr. Trump should speak
a new seriousness and a nuanced stalling, while the regime would con- to security policy, the ues to increase military spending sig- up on these matters but probably
agenda to Pacific policy. tinue to develop a nuclear-armed president has his nificantly. won’t. Nevertheless, his administra-
The immediate problem is North missile capable of hitting the U.S. Mr. Trump’s personal relations tion is right in seeing Vietnam and
Korea’s nuclear adventurism. The Negotiating holds the most promise priorities straight. with South Korea’s recently elected the Philippines (a treaty ally) as es-
broader challenge is China’s growing when it is done from a position of left-wing president, Moon Jae-in, sential to containing China.
power and ambition. The overarching American strength. have been far rockier. Mr. Moon’s The wild card on this trip is trade.
goal is managing Asia policy in a way The White House rightly believes previous threats, the administration preference for dealing with Pyong- To the disappointment of Japan and
that enhances the security and pros- that the best chance of shifting Mr. so far hasn’t labeled China a cur- yang is dialogue. But he has overrid- Vietnam especially, Mr. Trump with-
perity of the U.S. and its allies. Kim’s course is with pressure from rency manipulator. “Why would I call den—however reluctantly—the wishes drew the U.S. from the Trans-Pacific
The Trump administration begins the Chinese. Although Mr. Trump of- China a currency manipulator when of his political base to say that the Partnership, an 11-nation trade deal
with a hardheaded view of deter- ten invoked China as a nemesis dur- they are working with us on the U.S. remains central to South Korea’s negotiated under President Obama.
rence. Mr. Trump has rattled some ing the presidential campaign, he has North Korean problem?” Mr. Trump security. Mr. Moon understands that Then in April he called the 2012 Ko-
Americans with his threat “to to- since dealt deftly, winning unexpected cagily tweeted in April. “We will see extends well beyond threats from its rea-U.S. Free Trade Agreement “a
tally destroy North Korea” in “fire Chinese support for a Security Coun- what happens!” When Mr. Trump immediate neighbor. horrible deal.” But at least when it
and fury” if it attacks the U.S. or an cil resolution this past September im- stops in Beijing on Wednesday, ex- Vietnam wants assurances from Mr. comes to security policy, the presi-
ally. But there is no ambiguity in posing stiff sanctions on Pyongyang. pect blunt talk urging specific prom- Trump that the U.S. will not tolerate dent has his priorities straight.
the message this sends Kim Jong Far from having a rancorous relation- ises from China to further tighten Chinese hegemony in the South China
Un. To whatever extent North Korea ship, Mr. Trump has reached out reg- the screws on North Korea. Sea. The increased tempo of American Mr. Weinstein is president and
can be deterred, Mr. Trump has ularly to President Xi Jinping. Beyond cooperation on North Ko- patrols through those waters has not CEO of the Hudson Institute.
T
not the case. It’s just timing. When the sport as patriotic and militaris- locker room talk is.’ ” owner of the Houston Texans, Bob
he critics of National Football you have to account is when you’re tic. Sabol’s NFL Films made football But Messrs. Goodell and Lockhart McNair, complaining to fellow own-
League commissioner Roger either getting hired or you’re getting feel more American than baseball. have made bigger gaffes. In mid-Oc- ers, Mr. Goodell and a handful of NFL
Goodell are only getting extended or you’re getting a raise or His work was so critical to the tober, Mr. Goodell and Seattle Sea- executives that “we can’t have the in-
louder. Last week Papa John’s Pizza are you getting a bonus.” league’s wild growth that in 2011 he hawks wide receiver Doug Baldwin mates running the prison.” Texans
CEO John Schnatter assailed Mr. In other words, the time for ac- was inducted into the Pro Football wrote a letter to the Senate “to offer players took offense and staged an
Goodell for bungling the national an- tion has arrived—and Mr. Goodell Hall of Fame. The same honor had the National Football League’s full anthem protest before their Oct. 29
them protests. “The NFL has hurt us has a lot to account for. Concern been bestowed on Rozelle in 1985, game against the Seahawks.
by not resolving the current debacle over head injuries has eroded foot- while he was still commissioner. Mr. McNair apologized but said he
to the players’ and owners’ satisfac- ball’s public support. Mr. Goodell’s By contrast, a year ago Mr. Good- A year ago he hired a was misunderstood. “I was referring
tion,” said Mr. Schnatter, whose handling of player discipline, partic- ell hired a Democratic political to the relationship between the league
company is a high-profile sponsor. ularly the 2014 Ray Rice domestic- strategist, Joe Lockhart, as the Democratic operative, office and team owners,” he said in a
“Leadership starts at the top, and violence case and the 2015 New Eng- NFL’s executive vice president of Joe Lockhart, as his written statement, “and how they
this is poor leadership. . . . This land Patriots “Deflategate” scandal, communications. Mr. Lockhart, best have been making significant strategic
should’ve been nipped in the bud a damaged the NFL’s image. Now un- known as President Clinton’s press top communication exec. decisions affecting our league without
year and a half ago.” ending national-anthem protests secretary for two years, also adequate input from ownership over
Meanwhile, the owner of the Dal- have frustrated the league’s conser- worked for Jimmy Carter, Walter the past few years.”
las Cowboys, Jerry Jones, is trying vative fans, made it a target for Mondale, Michael Dukakis and John support for the Sentencing Reform Messrs. Goodell and Lockhart are
to block an extension of Mr. Good- President Trump, and contributed to Kerry. Last week the New York and Corrections Act of 2017.” Mr. damaging the league’s longstanding
ell’s contract. The commissioner’s sliding TV ratings. Times credited him with crafting Goodell is paid $44 million a year to and highly profitable brand. Neither
current deal expires at the end of It makes sense to blame ineffec- the NFL’s message on the anthem represent the views of the NFL’s one seems likely to join Pete Rozelle
the 2018 season. NFL insiders origi- tive leadership. But what if the prob- controversy. owners, not players or himself. and Ed Sabol in the hall of fame. The
nally expected the deal to be ex- lem is effective leadership? Football Mr. Lockhart is an aggressive me- An ESPN story in late October question is how long the owners will
tended this past summer. Mr. Jones, is headed exactly where Mr. Goodell dia manipulator. The Times reported about the anthem protests portrayed continue to allow the pair to reshape
who owns more than 100 Papa has steered it—to the left. The NFL that several NFL owners were both- Mr. Goodell as supporting players’ the NFL.
John’s franchises in Texas, has re- has long been a combatant in Amer- ered by a snide comment Mr. Lock- desire to use the NFL as a platform
portedly been rallying support ica’s larger culture war. But Mr. hart made about Mr. Trump: “Lock- to address whatever social issues Mr. Whitlock is a co-host of
among fellow owners to oust Mr. Goodell—whose father, Charles, was hart told reporters that talking they deem important. Buried deep in “Speak for Yourself” on Fox Sports 1.
Goodell. a liberal antiwar Republican senator
Asked Friday about Mr. Schnat- in the late 1960s—was always an odd
ter’s rebuke of the commissioner, Mr.
Jones hailed the pizza tycoon as a
“great American.” Speaking on a ra-
choice to run it.
Remember that the NFL was culti-
vated into prominence by Pete Ro-
In Defense of Broccoli
dio show Tuesday, he was even more zelle, a pro-war conservative. In the By George Ball with vitamins: A cup of cooked Broc- I can prove beyond a reasonable
Y
explicit about Mr. Goodell: “I know a 1960s, Rozelle hired a World War II coli provides more vitamin C than an doubt that my client possesses the
lot of people, a lot of fans, don’t think veteran-turned-filmmaker, Ed Sabol, our Honor, I’d like to make orange. That same cup supplies 10% most sublime vegetable flavor avail-
we make him as accountable as we to produce highlights, commercials some preliminary remarks to of daily minerals. Add metabolism- able to the human palate.
provide context and perspec- and enzyme-boosting folic acid and Broccoli has been capriciously de-
tive on the case before the court. As calcium pectate and the cancer- famed and disparaged by influential
a third generation seedsman, I have fighting antioxidants beta carotene, figures in all walks of life, from
PUBLISHED SINCE 1889 BY DOW JONES & COMPANY agreed to pro bono representation of carotene and sulphoraphane. Broc- nighttime talk-show hosts to Su-
Rupert Murdoch Robert Thomson Broccoli, the most maligned vegeta- coli nips disease in the bud. My cli- preme Court justices. Nearly three
Executive Chairman, News Corp Chief Executive Officer, News Corp ble of all time. ent contains healthful fiber, cell- decades ago, President George H.W.
Gerard Baker William Lewis I shall prove that my client is the building protein and eye-protecting Bush declared that he did not like
Editor in Chief Chief Executive Officer and Publisher vegetable that can save mankind. I lutein. my client. His remark was an unfor-
Matthew J. Murray DOW JONES MANAGEMENT: shall demonstrate Broccoli to be the Your Honor, my client is as close tunate result of the commercial pro-
Deputy Editor in Chief Mark Musgrave, Chief People Officer; most succulent, tasty, and life-en- to perfection as a vegetable can be. duction of Broccoli: picked unripe—
Edward Roussel, Innovation & Communications;
DEPUTY MANAGING EDITORS:
Anna Sedgley, Chief Operating Officer & CFO;
hancing of all vegetables. Not to eat Broccoli should be a thus deficient of flavors and
Michael W. Miller, Senior Deputy;
Thorold Barker, Europe; Paul Beckett, Katie Vanneck-Smith, President Can you eat Pea’s stringy vine, crime. healthful compounds—and shipped
Washington; Andrew Dowell, Asia; OPERATING EXECUTIVES: Corn’s cob, Bean’s coarse stalk, or Why, then, is savory, succulent, thousands of miles to languish for
Christine Glancey, Operations; Ramin Beheshti, Product & Technology; Melon’s spiny leaf? Only Broccoli al- creamy-textured Broccoli on trial? weeks on produce counters.
Jennifer J. Hicks, Digital; Jason P. Conti, General Counsel;
Neal Lipschutz, Standards; Alex Martin, News; Frank Filippo, Print Products & Services; lows you to eat the entire plant: as- For being too healthy? Too tasty? Therefore, I ask the court to dis-
Shazna Nessa, Visuals; Ann Podd, Initiatives; Steve Grycuk, Customer Service; paragus-like stalks, savory green Too easy to grow in all 50 states? miss this case, and invite you, the
Matthew Rose, Enterprise; Kristin Heitmann, Transformation; leaves and delicately sweet, nutty- No: my client is accused of being court, the plaintiff, and the People,
Stephen Wisnefski, Professional News Nancy McNeill, Advertising & Corporate Sales;
Jonathan Wright, International flavored flower buds. My client rep- “too bitter.” to lunch in my garden. Justice will
Paul A. Gigot, Editor of the Editorial Page;
Daniel Henninger, Deputy Editor, Editorial Page
DJ Media Group: resents the pinnacle of vegetable I offer two defenses: First, this be served—steamed and drizzled
Almar Latour, Publisher; sophistication. apotheosis of subtle flavors and with melted butter and freshly
WALL STREET JOURNAL MANAGEMENT: Kenneth Breen, Commercial
Suzi Watford, Marketing and Circulation; Professional Information Business: Do not overlook Broccoli’s promo- powerfully healthful properties squeezed lemon juice.
Joseph B. Vincent, Operations; Christopher Lloyd, Head; tion and protection of human health. needs to be grown to full ripeness.
Larry L. Hoffman, Production Ingrid Verschuren, Deputy Head No plant possesses more antioxi- Second, it must be transported from Mr. Ball is chairman and CEO of
EDITORIAL AND CORPORATE HEADQUARTERS: dants, beneficial enzyme-stimulating farms or home gardens to the W. Atlee Burpee Co. and a past pres-
1211 Avenue of the Americas, New York, N.Y., 10036 compounds, and metabolism-enhanc- kitchen quickly, and then steamed, ident of the American Horticultural
Telephone 1-800-DOWJONES
ing fiber, than my client. It abounds sautéed, grilled or stir-fried. Thereby Society.
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A18 | Monday, November 6, 2017 THE WALL STREET JOURNAL.
Cedar Lake
547 West 26th Street
Chelsea, New York
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$2B
in New York money raised in the debt the investment banking unit Suisse, VTB and BNP declined
10
and Jenny Strasburg sales, the people said. that handled the Mozambican to comment. Two Mozambi-
in London Financial regulators in the deals. can government spokesmen
U.S., the U.K. and Switzerland Credit Suisse CEO Tidjane didn’t reply to requests for
three international banks for began probes into potential Thiam has been pushing to Amount of debt sold for comment. 5
their roles in selling about $2 securities-law violations by change the bank’s culture of Mozambique The FBI began looking into
billion of debt for Mozam- the banks last year, after The risk taking for several years the soured bonds around June
bique, opening a new phase in Wall Street Journal reported with some success—the bank 2016, when a small team of
0
the global inquiry into the the existence of irregularities settled a longstanding lawsuit agents visited Maputo, the
bond deals, people familiar in the Mozambican transac- from the financial crisis in Chatham House’s Africa divi- capital of Mozambique, ac- 2014 ’15 ’16 ’17
with the matter said. tions. The newer U.S. inqui- 2016 and reported a sharp sion, said they were “an im- cording to people familiar Source: Pershing Square
Swiss lender Credit Suisse ries widen the scope of the rise in third quarter profit portant step toward greater with the situation. The securi- THE WALL STREET JOURNAL.
Group AG, Russian bank VTB probes to include potential this year as it focused more transparency on how these Please see BANKS page B2
Showdown
Looms
For ADP,
Ackman
BY DAVID BENOIT
AND JULIET CHUNG
Once-Hot Startup
BY SUZANNE VRANICA third-party audit of previously
Apps Feed Virtual Restaurants
AND ROLFE WINKLER enacted campaigns in 2016 and If you have
2017.” Omnicom Media Group ever ordered a
Several major advertisers directed some $20 million in burrito or a
are halting their business with advertising to Outcome this Hawaiian
Outcome Health following al- year, according to a person fa- poke bowl
legations that some employees miliar with the matter. through a
of the prominent Chicago Several other ad compa- food-delivery app, you may
startup misled clients. nies—Interpublic Group of have been the patron of a
Outcome Health streams
“point of care” advertising to
Cos., Havas SA and Publicis
Groupe SA—are putting deals
BOEING IS SET virtual restaurant.
No, you don’t need to put
screens and tablets that it with Outcome on hold or rec- TO TAKE UP on a VR headset to experience
places in doctors’ offices. One ommending that clients do so
OLD AIRLINER one, and the food is quite
DOORDASH/REUTERS
of Outcome’s largest custom- until Outcome provides verifi- real. What makes these new
ers, Bristol-Myers Squibb Co., cation of ad performance num- restaurants virtual is that you
said it has opted not to renew bers, according to people fa- AEROSPACE, B3 only find them online.
an ad agreement for 2018. Bris- miliar with the agencies’ plans. Tucked inside industrial
tol-Myers had been expected to Interpublic’s Healix Global parks, commissary kitchens
pay Outcome roughly $20 mil- health-care media agency isn’t and refitted basements in cit- The Star prepares pizza for delivery by DoorDash in San Jose, Calif.
lion this year, according to planning to renew ad deals ies like New York, Chicago
people familiar with the deal. with Outcome for 2018 unless and San Jose, Calif., these years toward something de- kitchens throughout New
“We have decided not to Outcome assures it that there restaurants have no dining cidedly more techy. By adopt- York City, Todd Millman, its
continue our agreement with are no improprieties, a person room, no wait staff, no take- ing a “launch, experiment and co-founder, says. There might
Outcome Health moving for- familiar with the matter said. out window and no signage. iterate” approach, these vir- be up to 10 different “restau-
ward, and into 2018,” a Bristol- Healix clients spend several (They still have to pass in- tual restaurants resemble rants” In a single kitchen.
Myers spokeswoman said, de- million dollars a year with spections from health boards, scrappy internet startups Though they appear on Grub-
clining to comment on the Outcome, the person said. Ha- though.) Many don’t take or- (only, when they say “apps,” hub as separate establish-
reason or on how much money vas and Publicis have recom- ders over the phone and are they often mean appetizers). ments, each with a distinct
the company has paid Outcome. mended to some clients that accessible only through on- By far the biggest company cuisine, all the food might be
At least one major ad com-
pany, Omnicom Group Inc.,
they reconsider their 2018
spending until a third-party
INSURERS WILL line services like Grubhub,
DoorDash or Postmates.
in the app-driven food-on-de-
mand space is Grubhub. It is
prepared in the same kitchen
by the same staff.
has suspended advertising with verification of Outcome’s ser- PUT OUT YOUR Virtual restaurants, with so invested in virtual restau- Consolidated kitchens in-
Outcome. A spokeswoman for
Omnicom’s media group said it
vices is conducted, people fa-
miliar with the matter said.
HOUSE FIRE their low overhead, are allow-
ing restaurateurs to shift away
rants that two years ago it
lent one of its own customers,
crease efficiency. “Most of
our employees don’t move
won’t resume spending with In all, such moves could from the capital-intensive Green Summit Group, $1 mil- very much,” Mr. Millman
Outcome until the company deny Outcome tens of millions FINANCE, B9 model that kills 60% of new lion to expand. Green Summit, says, explaining that each
“conducts a full campaign-level, Please see ADS page B4 restaurants in their first five which launched in 2013, has Please see MIMS page B4
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To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
B2 | Monday, November 6, 2017 * *** THE WALL STREET JOURNAL.
Active Weighting
A
Advisors..................R10
Activision Blizzard....B10
AI Powered Equity ETF
F
Facebook......................R8
Federated Total Return
Bond Fund...............R15
FedEx...........................B3
PayPal Holdings..........R1
Pernod Ricard..............R9
Pershing Square Capital
Management.............B1
Point Bridge Capital.R10
Disney’s TV Plan in Focus
BY BEN FRITZ growth engine to albatross, in pany can execute effectively. lies that don’t want to pay big
...................................R13 Fidelity Low-Priced Point Bridge GOP Stock
Stock Fund................R8 Tracker ETF.............R10 part because of the rise of Shares of Disney have fallen cable bills.
Airbnb..........................A4
Airbus..........................B3 Franklin Resources ..... B9 Postmates...................B1 Investors’ biggest question streaming giants such as Net- 8% since then. The centerpiece will be all
Alphabet......................B9 G
Publicis Groupe...........B1 about the future of Walt Dis- flix and Amazon.com Inc. To power its streaming am- of the movies Disney’s studio
Amazon.com R ney Co. continues to be Profit in Disney’s television bitions, Disney bought major- produces, including sequels to
General Motors.........B10
.................... A1,B2,B3,R8 Global X Lithium & RavenPack International whether and how it will turn unit, its largest, is down 11% ity control of the technology “Star Wars” and “Toy Story,”
American Airlines Group Battery Tech ETF ..... R6 S.L............................R13 around its so far this year. Television company BamTech for $2.58 which will be available six to
.....................................B3 GrubHub......................B1 Remy Cointreau..........R9 THE WEEK struggling tele- generated $6.1 billion of profit billion. nine months after they make
American International Guggenheim Partners.B8 Renaissance AHEAD vision business. in the first nine months of their debuts in theaters. “It’s a
Group.........................B9 Technologies...........R13 Chief Execu- Disney’s fiscal year, 48% of the content investment that ulti-
H
$6.1B
Apple......................B9,R8 Republican Policies Fund
Havas...........................B1 tive Robert company’s total. In 2014, it mately we believe will provide
A.T. Kearney................A1 ...................................R10
Automatic Data HCA Healthcare........R10 Royal Dutch Shell.....B10 Iger’s answer, new streaming was 56%. In 2012, it was 66%. more revenue for the company
Processing.................B1 HealthSouth................R8 services aimed directly at con- “The fact that the TV eco- than it did in the previous
S
B Honda Motor...............A6 sumers, will likely be a pri- system is facing challenges model,” Mr. Mayer said.
Siemens ...................... A1
I mary focus of the company’s has made us shift our focus Disney’s profit from TV in first Currently, Disney sells so-
Bank of America.........B9 SoftBank Group..........B3
BNP Paribas................B1 Imax.............................B2 Spirited Funds/ETFMG earnings report Thursday. pretty dramatically,” said nine months of the fiscal year called pay-TV rights for its
Boeing ......................... B3 Interbrand...................A8 Whiskey & Spirits ETF His decision to launch an Kevin Mayer, Disney’s chief movies to Netflix for more
Bridgewater Associates Interpublic Group........B1 .....................................R9 entertainment-streaming ser- strategy officer. “We see these than $300 million a year, ac-
...................................R13 J Sprint .......................... B3 vice in 2019 will mark a revo- streaming efforts as a way to cording to people with knowl-
Bristol-Myers Squibb . B1 John Hancock Bond
Square.........................R1 lution in the way the media capture new revenues and Disney is also preparing to edge of the arrangement.
C Fund ........................ R15 State Street................B9 company makes and spends profits.” launch an online ESPN offer- Including planned original
Casino Guichard- L T money and in its relationship Despite Disney’s impressive ing next year that will stream movies and TV series, Disney
Perrachon..................B3 LendEDU......................R1 TD Ameritrade Holding with consumers. Instead of li- growth in film, theme parks over 10,000 sporting events, will invest $1.8 billion on its
Chubb...........................B9
M
.....................................B9 censing all the content it pro- and consumer products, the including early matches in streaming service between
CoreCivic....................R10 T-Mobile US................B3 duces to other distributors, be company’s stock has fallen 17% Grand Slam tennis tourna- 2019 and 2021, research firm
Creative Artists Agency Media Rights Capital..B3 T. Rowe Price..............R1 they movie theaters, cable sys- in the past two years, largely ments and professional base- MoffettNathanson estimated.
.....................................B3 Microsoft ............... B9,R8 Twitter ........................ B4
Monster Beverage......R8 tems or online hubs like Net- over anxiety about the future ball, hockey and soccer games. That is on top of what Disney
Credit Suisse Group U flix Inc., Disney will start sell- of television. Because those aren’t shown on paid for BamTech.
............................. B1,R13 Morgan Stanley..........B9
Ulta Beauty.................A1 ing the content it produces Mr. Iger laid out plans for TV, however, the service is ex- Disney has yet to set a price
Muddy Waters............B3
D United Continental directly to consumers, with no the streaming service in Au- pected to be complementary for its service and is consider-
N Holdings....................B3
Delaware Diversified intermediaries. gust to try to allay Wall to cable subscriptions. ing whether to give cable sub-
Income Fund...........R15 Netflix....................B2,B3 U.S. Tax Reform Fund
Neuberger Berman...R16 ...................................R10 The move is necessary, in- Street’s concerns. But his an- The entertainment offering, scribers a discount, said peo-
Delta Air Lines ........... B3
Neuberger Berman US V siders say, because Disney’s nouncement raised new wor- however, could prove an at- ple with knowledge of the
Democratic Policies
Fund ........................ R10 Eqty Idx PutWrite TV business has turned from ries about whether the com- tractive alternative for fami- matter.
Valeant Pharmaceuticals
Deutsche Telekom......B3 Strategy Fund;Inst.R16
International.............B1
Diageo ......................... R9 Northern Star
Vanguard Group..........R9
Resources..................B1
DipJar..........................R1 VTB Bank....................B1
Dollar General.............A1 O
W
DoorDash.....................B1 Omnicom Group..........B1
Wal-Mart Stores........A1
E Outcome Health..........B1
Walt Disney................B2
Electronic Arts..........B10 P Wavelength Interest
Eli Lilly........................A6 Paulie Gee's................R2 Rate Neutral Fund..R13
INDEX TO PEOPLE
A Gottfried, Daniel.........R5 McNally, Robert........B10
Ackman, William ........ B1 Grantham, Jeremy Moloney, Martin.........R9
Amador, Art..............R13 ............................. R8,R10 N
Andrews, Paul.............R9 Greene, Howard........R15
Neumann, Spencer ... B10
Au, Yat-Pang...............A4 Grohowski, Leo.........B10
Nikolaev, Kiril ............. R9
B H
O
Benz, Christine...........R5 Harper, Shaun.............R2
O'Donnell, Norah......A12
Blancato, Phil..............R8 Haviland, Dave............R5
Office, Jeremy S.......R11
Bolton, David..............R9 Herndon-Brown,
ADP Lewis & Co., supported all three $427 million globally, led by a summer also outperformed its 5. Geostorm Warner Bros. $3 $28.8 -49
of his nominees. $55.6 million debut in China. original installment. *Friday, Saturday and Sunday Source: comScore
“This was a company that got “Ragnarok” is the third The gross of “Ragnarok”
no attention from its investors Thor movie since the original benefited from playing on
Continued from the prior page or the public,” Mr. Ackman said opened in 2011, and its open- higher-priced IMAX Corp. ner 2049” and “Geostorm.” a $21.6 million debut since
January 2004 start, compared in an interview. “As a result of ing this weekend is 41% higher screens, which have contrib- Several high-profile releases opening Wednesday.
with the S&P 500’s roughly our research and the proxy cam- than the 2013 debut of the se- uted $34 million to the movie’s will follow “Ragnarok” and help That is a decent opening,
200%. paign, the shareholders and the ries’ second installment, global tally. recover some of the losses, in- given the movie’s modest $28
The outcome of shareholder company have a much better “Thor: The Dark World.” The “Ragnarok” opening is cluding “Justice League” later million budget, but indicates
fights typically hinges on the understanding of the massive Chris Hemsworth reprises welcome news for theater this month and “Star Wars: The the movie won’t be the mon-
specific idea on the table rather opportunity to be unlocked and his role as the God of Thunder owners, who have weathered Last Jedi” in December. eymaker that the original
than an activist’s past perfor- that is inherently a good thing.” in the movie, which also fea- several flops this year and The weekend’s other new was. Last year’s “Bad Moms,”
mance. But Mr. Ackman’s coun- ADP, based in Roseland, N.J., tures Marvel characters Doc- went into the weekend with an release, “A Bad Moms Christ- starring Mila Kunis and Kath-
terpart, ADP Chief Executive has a stock-market value of tor Strange and the Incredible annual box office down 5% mas” from STX Entertainment, ryn Hahn as mothers who try
Carlos Rodriguez, has sought to about $51 billion, but it isn’t Hulk. That interweaving of compared with last year. also was a sequel, but it didn’t to shake up their domestic
pressure him by hammering his used to a spotlight. It helps a characters is a central compo- Last month was the lowest- match its predecessor’s per- life, was a breakout hit and
performance. wide range of companies handle nent of Marvel’s strategy, grossing October since 2007, formance. The comedy fell a ultimately collected $113 mil-
Mr. Rodriguez said he is al- repetitive HR functions like pay- which draws in moviegoers by due to misfires like “Blade Run- bit short of expectations with lion.
ready transforming ADP’s tech- roll and timekeeping, and ADP
nology, and the company’s says one in every six U.S. work-
shares have outpaced returns of
the S&P 500 since he became
CEO in November 2011, perfor-
mance that typically makes for a
ers benefits from its services.
Still, it historically operated be-
hind the scenes, dealing with
corporate executives, not indi-
BANKS when the lender began discus-
sions with defense contractor
Iskandar Safa, who negotiated
a deal to supply Mozambique
The aid freeze prompted a
currency crisis and worsened
food shortages in Mozam-
bique, which ranks 181st out
delivered,” a Privinvest
spokesman said. He also said
the goods and services pro-
vided weren’t military in na-
difficult activist target. vidual employees. Continued from the prior page with military and surveillance of 188 countries on the United ture and declined to comment
The tension between Persh- Mr. Ackman argues ADP has ties-fraud unit of the FBI’s equipment through his com- Nations’ Human Development on the Justice Department
ing Square and ADP is high- fumbled its industry-leading size New York field office has been pany Privinvest Group. Mr. Index, a statistic including life and FBI inquiries.
lighted by an opinion of the big- and position. Today, HR func- investigating whether the Safa asked Credit Suisse to expectancy and education. Revelations of the debts
gest proxy adviser, Institutional tions are moving into the hands banks facilitated improper help Mozambique borrow The IMF commissioned in- and the allegedly missing cash
Shareholders Services Inc. ISS of individual employees, driven payments to senior Mozambi- money to pay for the con- vestigations firm Kroll to au- have sparked anger in Mo-
said ADP’s board needs change by software-focused firms like can officials, a person familiar tracts. dit the deals, and Kroll found zambique at the government
and that Mr. Ackman is a strong Workday Inc. and Ultimate Soft- with the matter said. From 2013 to 2014, the the prices of equipment to be and at the banks it hired.
candidate to improve perfor- ware Group Inc. The activist Attorneys from the Justice Swiss bank, VTB and BNP provided by Privinvest ex- “Clearly there was nothing
mance—but it stopped short of says ADP is insular, stifles inno- Department’s Washington, raised $2 billion in bonds and ceeded what they should have to do with borrowing money—
recommending that sharehold- vation and relies too heavily on D.C., division specializing in loans for companies owned by cost by about $700 million, at least the traditional way of
ers vote for him because he people while software-heavy money laundering and asset Mozambique’s Defense Minis- while an additional $500 mil- borrowing money—for devel-
might introduce too much risk firms run lower-cost models. recovery met this summer try, which contracted to buy lion of the loan proceeds was opment,” said Adriano Nu-
to the company. Both sides criti- Mr. Ackman also said the with investors who had been equipment and services from vunga, program director for
cized ISS’s opinion. ISS said it company could boost its operat- sold the Mozambican bonds Privinvest. About $1.2 billion Mozambique’s Center for Pub-
stands by the report. ing margins significantly more and requested they provide all of the debt wasn’t publicly lic Integrity, a watchdog
Several large shareholders, than it plans to, though both documents and communica- disclosed and, in an unusual
The FBI has been group, speaking at a confer-
including one of ADP’s 10 big- sides have alleged that the other tions from the banks, accord- twist, proceeds from the deals investigating whether ence at Johns Hopkins Univer-
gest, said they would support manipulates numbers. ing to the people familiar with went straight from the banks sity in March. “This, for us, is
the company in the vote, citing Mr. Rodriguez acknowledges the matter. to Privinvest rather than go-
the banks facilitated clearly an international cor-
Mr. Rodriguez’s track record. margins and technology need to Justice officials also have ing first to the state-owned improper payments. ruption scandal.”
Still, some of those investors be- improve. But he said moving at met with Credit Suisse and companies that borrowed the The Justice Department is
lieve there is room to improve too fast a pace risks destabiliz- VTB bankers and lawyers money, people involved in the also looking at whether the
and expressed hope Mr. Ack- ing the business. based in London, where the transactions said. banks helped Mozambican of-
man’s presence would pressure ADP says Pershing Square’s deals were originated, to dis- After the Journal reported unaccounted for. ficials borrow more debt than
management. suggestion to increase margins cuss the transactions and fol- on the deals in 2016, donors “It is our view that, had the nation’s economy could
One institutional investor would introduce risk for bigger low-up dealings with inves- including the International Kroll assessed the pricing of reasonably repay, said one of
supporting Mr. Ackman told The customers by pushing them tors and Mozambique, the Monetary Fund suspended the projects properly, using the people familiar with the
Wall Street Journal it believes too fast, and since such clients people familiar with the mat- hundreds of millions of dol- the correct assumptions and matter.
more urgency is needed to com- only change providers roughly ter said. lars in direct aid to the coun- methodology, they would have —Matina Stevis-Gridneff and
bat technology-heavy rivals. An- every 20 years, the pace needs Credit Suisse became in- try, citing concerns about how found no discrepancy between Aruna Viswanatha
other proxy solicitor, Glass to be careful. volved in the deals in 2012, the money had been spent. the contract prices and value contributed to this article.
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THE WALL STREET JOURNAL. * * * * Monday, November 6, 2017 | B3
BUSINESS NEWS
He Posed
As Journal
Boeing Is Set to Take Up Old Jet
United considers 767s
Up and Away
Reporter, as plane maker looks
to restart production
Number of 767 passenger jets in
operation by airline*
TECHNOLOGY WSJ.com/Tech
At Twitter, Trump Is Star and Headache happening again.” donated about $122,612 di- spheres,” said Mr. Sharp, now nearly 9 million new monthly Trump did this summer—
Brief deactivation
Inside Twitter, the brief de- rectly to “Hillary for America.” a technology consultant. users to the site. sometimes violates Twitter’s
of president’s account activation elicited celebration This disconnect between “Social media platforms Early Friday, Mr. Trump ad- rules. Twitter also considers
sparks jokes and vow or amusement even in the up- Twitter’s employees and the and shareable networks have dressed the controversy in a the newsworthiness of a tweet
per ranks. A couple of hours company’s most closely continued to show an implicit tweet. “My Twitter account when deciding whether to take
it won’t happen again after the deactivation of Mr. watched user has fueled ten- liberal bias,” said Jenna Ellis, was taken down for 11 minutes action.
Trump’s account, Twitter Chief sion within the company. One a fellow at the Centennial In- “The public’s interest is to
BY NATALIE ANDREWS Executive Jack Dorsey liked a former employee said that de- stitute, a conservative think hear the president speak,” says
AND GEORGIA WELLS tweet with an image of his face leting Mr. Trump’s account tank at Colorado Christian Danielle Citron, a professor at
superimposed on celebrity was a “running joke” among University.
President’s use of the University of Maryland
The deactivation of Presi- painter Bob Ross standing be- employees about things they A Twitter representative Twitter as a primary School of Law who studies on-
dent Donald Trump’s Twitter fore a canvas depicting Mr. wanted to do on their last day. declined to comment. line harassment. She has ad-
account by a rogue employee Trump’s deactivated account. Lara Cohen, Twitter’s former Further complicating Twit-
communication tool vised Twitter since 2009 and
was the most public sign yet “There are no mistakes, only head of entertainment and tal- ter’s relationship with the has helped the site. is a member of Twitter’s Trust
that Twitter’s greatest star can happy little accidents!” the ent partnerships, retweeted a president is that Mr. Trump’s and Safety Council. “The
also cause the company great caption said. post about the rogue employee use of Twitter as a primary tweets can be costly, inciting
headaches. A spokesman for Twitter that said, “Not all heroes wear communication tool has helped racism and distrust and worse,
Twitter blamed the inci- declined to comment. capes.” the social network, tech ana- by a rogue employee. I guess but they still are the words of
dent—which took Mr. Trump’s Like many tech companies, Former Twitter executive lysts say, as it attempts to re- the word must finally be get- our president.”
@realdonaldtrump account Twitter’s workforce is young Adam Sharp said Silicon Valley ignite user growth. Twitter’s ting out—and having an im- The president has said in
offline for 11 minutes late and concentrated in the left- tech companies haven’t done a user growth has largely stalled pact.” the past that he believes Twit-
Thursday—on actions taken by leaning Bay Area. Employees good job recruiting conserva- over the past two years; dur- Critics of the president say ter is the best way for him to
a customer-support employee of Twitter donated $4,060 to tives. “The underrepresenta- ing the first quarter, Mr. that his use of the platform— connect directly with his sup-
on his or her last day of work. Mr. Trump’s campaign from tion there is as least as pro- Trump added 8.9 million fol- such as by threatening to at- porters. He has bragged about
Twitter said it was taking 2015 to 2016. During the same nounced as the more talked lowers among Twitter users. In tack North Korea if the coun- his follower count in media in-
measures “to prevent this from period, about 100 employees about gender and race the same period, Twitter drew try acts “unwisely,” as Mr. terviews.
Mr. Goldin added that Out- Christine Franklin, execu- Mr. Fox co-founded.
Continued from page B1 come has signed deals for mil- tive director of the Point of The Yankees partnership is
of dollars in potential revenue lions of dollars in new adver- Care Communication Council, part of a $25 million to $30
next year. During its recent tising from pharmaceutical said the purpose of the meet- million funding round, ex-
fundraising, Outcome esti- companies as well as medical ing was to present work from pected to close in coming
mated 2016 revenue of about device and lifestyle companies. the group’s standards commit- weeks, that will make Vision
$130 million, according to a Last month, the Journal re- tee, including proposed audit- Esports the largest share-
company presentation to in- ported allegations by advertis- ing standards. holder in Echo Fox, a person
vestors that was reviewed by ers and former employees that In July, Outcome hired me- familiar with the matter said.
The Wall Street Journal. some Outcome employees had dia-audit firm BPA Worldwide, Echo Fox and the Yankees de-
David Goldin, an Outcome misled customers by charging which verified the size of Out- clined to comment on the ex-
Health spokesman, said in re- them for ads on more screens come’s network and its system act size of the Yankees’ partic-
sponse to inquiries from the than the startup had installed. Outcome Health streams ads to screens in doctors’ offices. for delivering ads. Richard Mur- ipation.
Journal, “Outcome Health is Outcome offered free advertis- phy, BPA’s senior vice president Mr. Fox’s third act, as a vid-
actively leading the point-of- ing worth tens of millions of Webb “to review allegations At a Sept. 13 meeting in of auditing, said his firm has re- eogame team owner, comes as
care industry in creating de- dollars this year to make up for about certain employees’ con- New York sponsored by the viewed about a dozen Outcome the esports industry is grow-
pendable delivery and mea- shortfalls, the Journal reported. duct” that were raised inter- Point of Care Communication ad campaigns to date and plans ing rapidly. Some 191 million
surement systems through An Outcome spokesman, nally and by the Journal. Mr. Council, some big pharmaceu- to audit more this quarter. “In people world-wide are ex-
transparent third-party valida- Lanny Davis, told the Journal Davis said Outcome “has al- tical advertisers raised ques- reviewing those campaigns, we pected to watch an esports
tion, and we very much appre- last month that Outcome had ways upheld the highest ethi- tions about point-of-care ad have [seen] some under-deliv- contest at least once a month
ciate the overwhelming sup- put three employees on paid cal standards” and has ad- companies’ claims about ad ery and some over-delivery, in 2017, more than double the
port from the vast majority of leave and hired the law firm of opted new policies to comply performance, people who at- which is typical of digital media 2012 number, according to re-
our customers who are making former U.S. attorney Dan with customer contracts. tended the meeting said. Ad- campaigns,” he said in an email. search firm Newzoo BV.
ADVERTISEMENT
Legal Notices MIMS U.S. retail sales at restaurants have surpassed sales at grocery stores.
To advertise: 800-366-3975 or WSJ.com/classifieds Continued from page B1 Restaurants and bars Grocery stores
person is devoted to a spe-
cific set of tasks. At the end $60 billion
CLASS ACTIONS of the preparation process,
runners assemble and bag 50
the meals.
40
In San Jose, Grubhub com-
petitor DoorDash has built
'
# ()*(+,+-*./-+%0
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There is one tenant so far, a
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says Ben Seabury, chief oper- partners can operate without ing for below-market rates.
1 %
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ating officer of the 1100 having to secure their own Both kitchen space startup
1 8 &1
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8 ! ", ! !, %,
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$ # "$ 34%"
$ #5' $ =! ,:# Group, which owns the virtual kitchen space. Foodworks and Green Sum-
= <"!; !
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restaurant. Typically, 30 cents Virtual restaurants tap mit Group specialize in snap-
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$ # = of every dollar that comes into into a larger trend: Ameri- ping up kitchens on the
$ 3
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$ # = 0" 66 6-*/ < #=B,! " ,$ ! :##= "B,! $ :", "$ ",;
one of his restaurants goes to cans’ increasing aversion to cheap. The same trend is
! "," ,,! <! ! #!!$! !# !;! " &$=" !
## ! "C#! F,# < = = labor, says Mr. Seabury. But cooking for themselves. For driving surviving establish-
= ! #!!$! B;$! "# !" ! !;! ,; =! ! $! ! ! 0;$! <!" " ! #=$! %"
$ # without waiters, bartenders the first time ever in 2016, ments trying to figure out
F, "# "$ !
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$ # just 10 cents on the dollar— ing and drinking establish- ness through delivery.
=B,! ! ! #!!$! ! % ,! #!!$! :",# " ! F:# ::,! $#! = #=$!! ! ! and even less when demand is ments than on groceries, ac- A Chicago restaurant
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$ # " < ! ", :$! "$ ! #!!$! high. cording to U.S. Census data. group, Lettuce Entertain You
C#!# Postmates, another popu- The food-delivery market is a Enterprises, launched a vir-
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8 & lar on-demand delivery small slice of that sector: It is tual restaurant after three of
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startup, is pursuing a similar only $30 billion in 2017, but its chefs realized they had
.HH #! "< ! *9-- strategy, a company spokes- Morgan Stanley estimates it unused kitchen space at one
;
96*-*
woman says. In September, it could balloon to $220 billion of their sushi restaurants.
) ,!=" ** 6-*@ 1
opened a commissary within a few years. The group had leads on high-
kitchen in Los Angeles A nationwide oversupply quality tuna, and the result
where, in exchange for pay- of restaurants and the subse- was the ASAP Poke virtual
ing a higher commission, quent shakeout has kitchen restaurant, which delivers
Postmates’ virtual-restaurant space in some locations go- poke bowls.
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
THE WALL STREET JOURNAL. NY Monday, November 6, 2017 | B5
CLOSED-END FUNDS
Listed are the 300 largest closed-end funds as 52 wk 52 wk 52 wk Prem12 Mo Prem12 Mo
measured by assets. Prem Ttl Prem Ttl Prem Ttl Fund (SYM) NAV Close /Disc Yld Fund (SYM) NAV Close /Disc Yld
Closed-end funds sell a limited number of shares and Fund (SYM) NAV Close /Disc Ret Fund (SYM) NAV Close /Disc Ret Fund (SYM) NAV Close /Disc Ret
invest the proceeds in securities. Unlike open-end PIMCO Corporate & Incm PTY NA 16.88 NA 10.3 Nuveen CA Quality Muni NAC NA 14.53 NA 5.5
funds, closed-ends generally do not buy their shares Gabelli Dividend & Incm GDV 24.03 22.60 -6.0 33.5 Clearbridge Engy MLP Opp EMO 11.16 NA -0.0 MS China a Shr Fd CAF 27.91 23.90 -14.4 32.5 PIMCO Corporate & Incm PCN NA 17.09 NA 10.4 Nuveen MD Qual Muni NMY NA 12.69 NA 5.0
back from investors who wish to cash in their holdings.
Instead, fund shares trade on a stock exchange.
Gabelli Equity Trust GAB 6.41 6.02 -6.1 28.9 Clearbridge Engy MLP TR CTR 11.75 NA 8.4 MS Emerging Fund MSF 19.83 17.45 -12.0 27.4 PIMCO HiInco PHK NA 7.83 NA 13.1 Nuveen MI Qual Muni NUM NA 13.41 NA 4.8
a-The NAV and market price are ex dividend. b-The Genl American Investors GAM 42.42 36.29 -14.5 28.5 Cohen & Steers Infr Fd UTF 25.55 23.09 -9.6 30.9 MS India Invest IIF 40.82 36.20 -11.3 37.3 PIMCO Inco Str Fd PFL NA 12.03 NA 8.9 Nuveen NJ Qual Muni NXJ NA 13.74 NA 5.2
NAV is fully diluted. c-NAV is as of Thursday’s close. d- Guggenheim Enh Fd GPM 8.83 8.63 -2.3 30.9 C&S MLP Incm & Engy Opp MIE 10.48 9.70 -7.4 12.2 New Germany Fund GF 21.19 19.08 -10.0 51.5 PIMCO Incm Strategy Fd II PFN NA 10.71 NA 8.9 Nuveen NY AMT-Free NRK NA 12.98 NA 4.9
NAV is as of Wednesday’s close. e-NAV assumes rights
offering is fully subscribed. f-Rights offering in process. HnckJohn TxAdv HTD 26.15 25.79 -1.4 22.5 Cohen & Steers Qual Inc RQI 13.54 12.55 -7.3 17.9 Swiss Helvetia Fund SWZ 13.84 12.56 -9.2 22.7 Putnam Mas Inco PIM 5.03 4.77 -5.2 6.5 Nuveen NY Qual Muni NAN NA 13.85 NA 5.1
g-Rights offering announced. h-Lipper data has been Liberty All-Star Equity USA 6.80 6.18 -9.1 38.3 CohnStrsPfdInco RNP 22.83 21.18 -7.2 25.6 Templeton Dragon TDF 21.65 NA 39.1 Putnam Premier Income Tr PPT 5.58 5.38 -3.6 5.8 Nuveen OH Qual Muni NUO NA 14.82 NA 4.7
adjusted for rights offering. j-Rights offering has Royce Micro-Cap RMT 10.42 9.34 -10.4 40.2 Cohen & Steers TR RFI 13.40 12.64 -5.7 16.4 Nuveen PA Qual Muni NQP NA 13.43 NA 5.2
expired, but Lipper data not yet adjusted. l-NAV as of Templeton Emerging EMF 17.15 NA 44.8 Wells Fargo Multi-Sector ERC NA 13.03 NA 9.4
previous day. o-Tender offer in process. v-NAV is Royce Value Trust RVT 17.52 16.03 -8.5 47.6 CLSeligmn Prem Tech Gr Fd STK 22.65 23.66 +4.5 55.3 Virtus Total Return Fund ZF 12.64 NA 25.3 World Income Funds Nuveen VA Qual Muni NPV NA 13.07 NA 4.3
converted at the commercial Rand rate. w-Convertible Source Capital SOR 45.23 40.87 -9.6 20.5 Duff & Phelps DNP 9.98 11.29 +13.2 23.3 Voya Infr Indls & Matls IDE 16.72 16.17 -3.3 43.5 Abeerden Asia-Pacific FAX 5.45 5.02 -7.9 8.3 PIMCO California Muni PCQ NA 17.18 NA 5.3
Note-NAV (not market) conversion value. y-NAV and PIMCO California Mun II PCK NA 10.08 NA 5.6
market price are in Canadian dollars. NA signifies that Tri-Continental TY 29.26 26.14 -10.7 32.1 Duff&PhelpsGblUtilIncFd DPG 15.85 NA 16.5 Wells Fargo Gl Div Opp EOD 6.24 NA 29.7 Etn Vnc Short Dur Fd EVG 15.33 14.14 -7.8 6.9
the information is not available or not applicable. NS Specialized Equity Funds Eaton Vance Eqty Inco Fd EOI 14.67 14.38 -2.0 33.5 Legg Mason BW Glbl Incm BWG NA 13.04 NA 8.3 52 wk
Prem12 Mo
signifies fund not in existence of entire period. Adams Natural Rscs Fd PEO 23.04 19.77 -14.2 11.0 Eaton Vance Eqty Inco II EOS 15.46 15.08 -2.5 26.9 Fund (SYM) NAV Close /Disc Yld MS EmMktDomDebt EDD 8.67 7.73 -10.8 8.4 Prem Ttl
12 month yield is computed by dividing income Fund (SYM) NAV Close /Disc Ret
dividends paid (during the previous twelve months for AllnzGI NFJ Div Interest NFJ 14.72 13.41 -8.9 22.5 EtnVncRskMngd ETJ 9.96 9.16 -8.0 15.6 PIMCO Dynamic Credit PCI NA 22.76 NA 11.4
Etn Vnc Tax Mgd Buy-Write ETB 16.27 16.58 +1.9 14.0 U.S. Mortgage Bond Funds
periods ending at month-end or during the previous AlpnGlblPrProp AWP 7.21 6.46 -10.4 38.6 PIMCODynamicIncomeFund PDI NA 30.20 NA 13.5 General Equity Funds
fifty-two weeks for periods ending at any time other Eaton Vance BuyWrite Opp ETV 14.87 15.11 +1.6 17.5 BlackRock Income Trust BKT 6.66 6.28 -5.7 5.1
ASA Gold & Prec Metals ASA 12.79 11.30 -11.6 -20.3 PIMCO Income Opportunity PKO NA 26.14 NA 9.9 Specialized Equity Funds
than month-end) by the latest month-end market price
Eaton Vance Tax-Mng Div ETY 12.06 11.73 -2.7 29.6 Nuveen Mtg Opp Term Fd JLS 25.84 NA 5.2 Griffin Inst Access RE:L NA NA NA NS
adjusted for capital gains distributions. BlkRk Enh Cap Inco CII 16.74 15.96 -4.7 35.2 PIMCO Strat Income Fund RCS NA 9.19 NA 9.7
EatonVanceTax-MngdOpp ETW 11.52 11.87 +3.0 27.8 Investment Grade Bond Funds Griffin Inst Access RE:M NA NA NA NS
Source: Lipper BlkRk Engy Res Tr BGR 15.19 13.77 -9.3 10.2 Templeton Emerging TEI NA 11.55 NA 4.5
EtnVncTxMngGlDvEqInc EXG 9.40 9.32 -0.9 31.3 Blackrock Core Bond Tr BHK 14.93 14.19 -5.0 5.5 NexPointRlEstStrat;A 20.00 NA NA 9.1
Friday, November 3, 2017 BlackRock Enh Eq Div Tr BDJ 9.80 9.23 -5.8 32.8 Templeton Global GIM NA 6.65 NA 6.1
Fiduciary/Clymr Opp Fd FMO 12.19 12.12 -0.6 -5.8 BlkRk Credit Alloc Incm BTZ 14.91 13.43 -9.9 6.3 NexPointRlEstStrat;C 19.95 NA NA 8.3
52 wk BlackRock Enh Gl Div Tr BOE 14.32 13.57 -5.2 29.0 Wstrn Asset Emerg Mkts EMD NA 15.50 NA 7.5
Prem Ttl FT Energy Inc & Growth Fd FEN 22.98 22.86 -0.5 6.7 John Hancock Income Secs JHS 15.60 14.89 -4.6 5.4 NexPointRlEstStrat;Z 19.95 NA NA 9.4
BlkRk Intl Grwth&Inco BGY 7.00 6.64 -5.1 30.7 Wstrn Asset Gl Def Opp Fd GDO NA 18.30 NA 7.5
Fund (SYM) NAV Close /Disc Ret FstTrEnhEqtIncFd FFA 16.40 15.62 -4.8 33.3 MFS Inc Tr MIN 4.46 4.23 -5.2 9.2 Resource RE Div Inc:A 10.04 NA NA 6.7
BlkRk Health Sci BME 35.37 36.10 +2.1 27.2 National Muni Bond Funds
First Tr Engy Infr Fd FIF 18.72 18.39 -1.8 15.2 WstAstClymr InfLnkd Fd WIW NA 11.28 NA 3.6 Resource RE Div Inc:C 10.03 NA NA 5.9
General Equity Funds BlackRck Rscs Comm Str Tr BCX 10.21 9.04 -11.5 24.7 AllianceBrnstn NtlMun AFB 14.93 13.57 -9.1 4.6
First Tr MLP & Engy Incm FEI 14.27 14.28 +0.1 6.6 WstAssetClymr InflLnk Sec WIA NA 11.53 NA 3.3 Resource RE Div Inc:D 10.19 NA NA 6.1
Adams Divers Equity Fd ADX 18.24 15.71 -13.9 35.0 BlackRock Science & Tech BST 27.82 26.57 -4.5 52.4 Blackrock Invest BKN 15.89 14.58 -8.2 5.3
Gabelli Hlthcr & Well GRX 11.09 9.65 -13.0 11.5 Loan Participation Funds Resource RE Div Inc:I 10.47 NA NA 6.7
Boulder Growth & Income BIF 12.44 10.63 -14.5 37.8 BlackRock Utility & Infr BUI 21.27 20.86 -1.9 27.1 BlackRockMun2030Target BTT 24.12 22.39 -7.2 4.1 Resource RE Div Inc:L 10.04 NA NA NS
Gabelli Utility Tr GUT 5.50 7.08 +28.7 21.0 Apollo Sr Fltg Rate Fd AFT 18.07 16.51 -8.6 7.4
Central Securities CET 32.36 26.79 -17.2 35.5 CBREClarionGlblRlEstIncm IGR 8.76 7.79 -11.1 14.1 BlackRock Municipal Trust BFK 14.46 14.12 -2.4 5.7 Resource RE Div Inc:T 10.01 NA NA 5.8
GAMCOGlblGoldNatRscs&Inc GGN 5.39 5.47 +1.5 4.1 BlkRk Debt Strat Fd DSU 12.79 11.69 -8.6 6.9
CohSteer Opprtnty Fd FOF 13.78 13.14 -4.6 27.2 Central Fund of Canada CEF 13.13 NA -5.8 BlackRockMuni BLE 15.05 14.33 -4.8 6.1 Resource RE Div Inc:U 10.05 NA NA 6.7
GoldmanSachsMLPIncOpp GMZ 8.57 NA 6.3 BlackRock FR Incm Strat FRA 15.01 14.13 -5.9 5.6
Cornerstone Strategic CLM 13.58 15.03 +10.7 26.0 ClearBridge Amer Engy CBA 7.94 NA 7.5 BlackRockMuni Tr BYM 15.20 14.30 -5.9 5.3 Resource RE Div Inc:W 10.19 NA NA 6.5
Goldman Sachs MLPEnergy GER 6.10 NA 4.5 Blkrk FltRt InTr BGT 14.49 14.12 -2.6 5.3
EtnVnc TaxAdvDiv EVT 23.17 22.59 -2.5 31.3 ClearBridge Engy MLP Fd CEM 13.49 NA 0.7 BlkRk MuniAssets Fd MUA 14.16 14.96 +5.6 4.6 SharesPost 100 26.19 NA NA -3.0
John Hancock Finl Opps Fd BTO 36.68 37.54 +2.3 40.0 BlackstoneGSO Strat Cred BGB NA 15.78 NA 8.4
Blackstone GSO Sr Float BSL NA 17.10 NA 6.7 BlkRk Munienhanced MEN 11.94 11.85 -0.8 5.7 Tot Inc+ RE:L NA NA NA NS
Macquarie Glbl Infrstrctr MGU 28.09 24.93 -11.2 37.9 BlkRk MuniHldgs Inv MFL 14.74 15.04 +2.0 5.7 USQ Core Real Estate:I USQIX 25.13 NA NA NS
NeubergerBermanMLPIncm NML 9.65 8.69 -9.9 11.2 Eagle Point Credit ECC NA 19.08 NA 8.3
A Week in the Life of the DJIA Neubrgr Brm Rl Est Sec Fd NRO 5.80 5.50 -5.2 17.3 Eaton Vance FR Incm Tr EFT 15.55 14.36 -7.7 5.7 BlkRk MuniHldgs Qlty II MUE 14.08 13.70 -2.7 5.6
BlkRk MuniVest MVF 9.65 9.71 +0.6 5.8
USQ Core Real Estate:IS USQSX 25.13 NA NA NS
Versus Cap MMgr RE Inc:F 27.46 NA NA 6.0
Nuveen Dow 30 Dynamic DIAX 17.73 NA 37.0 EatonVnc SrFltRate EFR 15.21 14.41 -5.3 6.0 Versus Cap MMgr RE Inc:I 27.52 NA NA 6.3
A look at how the Dow Jones Industrial Average component stocks Eaton Vance Sr Incm Tr EVF 7.18 6.50 -9.5 5.6 BlkRk MuniVest II MVT 15.27 15.33 +0.4 5.9
Nuveen Core Eq Alpha JCE 15.82 NA 34.5 Versus Capital Real Asst VCRRX 25.05 NA NA NS
did in the past week and how much each moved the index. The DJIA First Trust Sr FR Fd II FCT 14.08 12.99 -7.7 6.1 BlkRk MuniYield MYD 14.87 14.25 -4.2 6.0
Nuveen Diversified Div JDD 12.76 NA 28.9 Wildermuth Endwmnt Str 12.84 NA NA 14.2
FT Sr Floating Rate 2022 FIV 9.74 9.50 -2.5 NS BlkRk MuniYld Quality MQY 15.83 15.30 -3.3 5.6
gained 105.00 points, or 0.45%, on the week. A $1 change in the price Nuveen Engy MLP Fd JMF 10.76 NA -0.8
BlkRk MuniYld Qlty II MQT 13.90 12.95 -6.8 5.6
Wildermuth Endwmnt S:C 12.67 NA NA 13.4
NuvNASDAQ100DynOver QQQX 23.83 NA 43.0 Invesco Credit Opps Fund VTA 13.07 11.61 -11.2 7.1 Wildermuth Endwmnt S:I 12.89 NA NA NS
of any DJIA stock = 6.89-point change in the average. To date, a Invesco Senior Income Tr VVR 4.88 4.39 -10.0 6.0 BlRkMunyldQltyIII MYI 14.46 14.17 -2.0 5.8
Nuveen Real Est Incm Fd JRS 11.01 NA 20.4 Income Preferred Stock Funds
$1,000 investment on Dec. 31 in each current DJIA stock component NuvS&P500DynOverwrite SPXX 16.22 NA 31.8 Nuveen Credit Strt Inc Fd JQC NA 8.25 NA 7.4 Deutsche Mun Income Tr KTF 12.65 11.89 -6.0 6.6 MultiStrat Gro & Inc:A 15.28 NA NA 5.4
would have returned $35,835, or a gain of 19.45%, on the $30,000 NuvFloatRteInco Fd JFR NA 11.48 NA 6.9 Dreyfus Mun Bd Infr Fd DMB 14.22 12.96 -8.9 4.9 MultiStrat Gro & Inc:C 14.96 NA NA 4.6
NuveenS&P500Buy-Write BXMX 14.14 NA 25.0
Nuv Float Rte Opp Fd JRO NA 11.35 NA 7.3 Dreyfus Strat Muni Bond DSM 8.39 8.42 +0.4 5.9 MultiStrat Gro & Inc:I 15.47 NA NA 5.6
investment, including reinvested dividends. Reaves Utility Fund UTG 33.08 31.00 -6.3 17.4
Dreyfus Strategic Munis LEO 8.61 8.66 +0.6 5.9
Tekla Hlthcr Investors HQH 24.31 23.50 -3.3 25.3 Nuveen Senior Income Fund NSL NA 6.74 NA 6.9 MultiStrat Gro & Inc:L 15.06 NA NA 4.8
The Week’s Action Pioneer Floating Rate Tr PHD 12.48 11.77 -5.7 6.0 Eaton Vance Mun Bd Fd EIM 13.72 12.47 -9.1 5.0 The Relative Value:CIA VFLEX 25.37 NA NA NS
Tekla Healthcare Opps Fd THQ 19.11 17.45 -8.7 26.3
Pct Stock price Point chg $1,000 Invested(year-end '16) Voya Prime Rate Trust PPR 5.67 5.10 -10.1 6.0 Eaton Vance Mun Income EVN 13.42 12.48 -7.0 5.4 Convertible Sec's. Funds
Tekla Life Sciences HQL 20.29 20.31 +0.1 35.7
chg (%) change in average* Company Symbol Close $1,000 High Yield Bond Funds EV National Municipal Opp EOT 21.94 22.00 +0.3 4.7 Calmos Dyn Conv and Inc CCD 21.05 20.66 -1.9 20.9
Tekla World Hlthcr Fd THW 14.67 14.07 -4.1 19.7
5.80 9.45 65.07 Apple AAPL $172.50 $1,508 AllianceBernstein Glbl AWF 13.91 12.84 -7.7 6.7 Invesco Adv Mun Incm II VKI 12.18 11.26 -7.6 5.8 World Equity Funds
Tortoise Energy TYG 26.02 NA -0.5 BMO LGM Front ME 10.24 NA NA 14.8
Barings Glbl Short Dur HY BGH 21.20 20.56 -3.0 8.9 Invesco Mun Incm Opps Tr OIA 7.60 7.90 +3.9 5.2
4.37 1.94 13.36 Intel INTC 46.34 1,306 Tortoise MLP Fund NTG 16.91 NA 2.5 CalamosGlbTotRet CGO 13.48 14.15 +5.0 24.8
Voya Gl Equity Div IGD 8.15 8.00 -1.8 32.2 BlackRock Corp Hi Yd Fd HYT 12.34 11.14 -9.7 7.9 Invesco Mun Opportunity VMO 13.55 12.50 -7.7 6.1
2.06 5.29 36.42 Boeing BA 261.75 1,719 BlackRockDurInco Tr BLW 17.14 16.16 -5.7 7.8 Invesco Municipal Trust VKQ 13.54 12.34 -8.9 5.9 Prem12 Mo
Income Preferred Stock Funds Fund (SYM) NAV Close /Disc Yld
1.97 3.26 22.45 McDonald’s MCD 168.65 1,413 Calamos Strat Fd CSQ 12.80 12.38 -3.3 42.5 Brookfield Real Assets RA 25.28 24.09 -4.7 NS Invesco Qlty Mun Inco IQI 13.67 12.45 -8.9 5.5
1.72 2.26 15.56 TRV 133.32 Credit Suisse High Yld DHY 2.80 2.84 +1.4 9.4 Invesco Inv Grade Muni VGM 14.04 13.08 -6.8 5.8 U.S. Mortgage Bond Funds
Travelers 1,108 Cohen & Steers Dur Pfd LDP 27.55 26.72 -3.0 19.8
Cohen & Strs Sel Prf Inco PSF 28.13 28.20 +0.2 15.7 DoubleLine Incm Solutions DSL NA 20.81 NA 8.6 Invesco Value Mun Incm Tr IIM 16.31 14.73 -9.7 5.0 Vertical Capital Income 12.57 NA NA 3.2
1.71 1.51 10.40 Wal-Mart Stores WMT 89.68 1,324 FT Interm Duration Pfd FPF 25.13 24.38 -3.0 18.8 Dreyfus Hi Yd Strat Fd DHF 3.58 3.46 -3.4 8.8 MainStay DefinedTerm MMD NA 19.28 NA 5.6 Loan Participation Funds
1.68 2.00 13.77 United Technologies UTX 121.07 1,124 Flaherty & Crumrine Dyn DFP 26.46 26.08 -1.4 17.4 Fst Tr Hi Inc Lg/Shrt Fd FSD 18.12 16.76 -7.5 8.3 MFS Munl Inco MFM 7.38 6.90 -6.5 5.5 504 Fund 9.77 NA NA 3.7
Guggenheim Strat Opps Fd GOF 19.81 21.41 +8.1 10.2 Nuveen AMT-Free Quality NEA NA 13.70 NA 5.4 FedProj&TrFinanceTender 10.06 NA NA NS
1.50 1.65 11.36 Visa V 111.36 1,435 Flaherty & Crumrine Pfd FFC 20.44 20.90 +2.3 13.9
Ivy High Income Opps Fund IVH 16.24 15.51 -4.5 9.4 Nuveen AMT-Free Mun NVG NA 15.23 NA 5.7 Invesco Sr Loan A 6.67 NA NA 4.2
John Hancock Pfd Income HPI 21.32 21.66 +1.6 15.3
1.28 1.45 9.98 Chevron CVX 114.99 1,007 Neuberger Berman HYS NHS 13.41 12.06 -10.1 7.4 Nuveen Mun Credit Incm Fd NZF NA 15.04 NA 5.9 Invesco Sr Loan B 6.67 NA NA 4.2
John Hancock Pfd II HPF 21.09 21.42 +1.6 12.4 Invesco Sr Loan C 6.68 NA NA 3.5
1.11 2.69 18.52 Goldman Sachs GS 244.40 1,030 John Hancock Pfd Inc III HPS 18.82 18.26 -3.0 12.0 NexPoint Credit Strat Fd NHF 25.34 23.88 -5.8 10.1 Nuveen Enhncd Mun Val Fd NEV NA 14.40 NA 5.7
Nuveen Intermed Dur Mun NID NA 13.02 NA 4.9 Invesco Sr Loan IB 6.67 NA NA 4.4
JHancock Pr Div PDT 15.84 16.93 +6.9 29.5 Nuveen Credit Opps 2022 JCO NA 10.01 NA NS
0.67 0.64 4.41 American Express AXP 96.43 1,323 NuveenMuniIncoOpp Fd NMZ NA 13.61 NA 6.0 Invesco Sr Loan IC 6.67 NA NA 4.3
LMP Cap & Inco Fd SCD 14.08 NA 26.0 Nuveen Gl Hi Incm Fd JGH NA 17.09 NA 8.2 Invesco Sr Loan Y 6.67 NA NA 4.4
0.39 0.33 2.27 Microsoft MSFT 84.14 1,377 Nuveen Pfd & Incm Opps Fd JPC 10.50 NA 19.9 Nuveen High Incm Dec18 JHA NA 9.99 NA 5.2 Nuveen Muni Value Fund NUV NA 10.17 NA 3.8
RiverNorth MP Lending RMPLX 25.05 NA NA 6.6
0.34 0.33 2.27 Walt Disney DIS 98.64 954 Nuveen Pfd & Incm Secs Fd JPS 10.33 NA 20.6 Nuveen High Incm Dec19 JHD NA 10.09 NA 5.8 Nuveen Qual Mun Incm Fd NAD NA 13.96 NA 5.6 Sierra Total Return:T SRNTX 25.13 NA NA NS
Nuveen Preferred & Incm JPI 25.46 NA 15.3 Nuveen Hi Incm Nov 2021 JHB NA 10.12 NA 5.9 Nuveen Sel Tax Free NXP NA 14.67 NA 3.7 Voya Senior Income:A 12.54 NA NA 5.3
0.13 0.27 1.86 UnitedHealth Group UNH 212.87 1,346 Nuveen Sel TF NXQ NA 14.06 NA 3.6
TCW Strategic Income Fund TSI 5.62 NA 12.2 Pioneer High Income Trust PHT 10.87 10.00 -8.0 8.2 Voya Senior Income:C 12.52 NA NA 4.8
0.12 0.04 0.28 Cisco Systems CSCO 34.47 1,181 Virtus Global Dividend ZTR 13.43 NA 36.4 Prud Gl Shrt Dur Hi Yd GHY 16.50 14.68 -11.0 7.8 PIMCO MuniFd PMF NA 13.14 NA 5.9 Voya Senior Income:I 12.50 NA NA 5.6
Convertible Sec's. Funds Prudentl Sh Dur Hi Yd Fd ISD 16.68 15.07 -9.7 7.7 Pimco Muni Inc II PML NA 13.17 NA 5.9 Voya Senior Income:W 12.55 NA NA 5.6
–0.14 –0.05 –0.34 Pfizer PFE 35.55 1,127 PIMCO Muni Inc III PMX NA 11.71 NA 5.9
AdvntClymrFd AVK 17.60 16.04 -8.9 30.0 Wells Fargo Incm Opps Fd EAD NA 8.51 NA 8.7 High Yield Bond Funds
–0.22 –0.10 –0.69 Coca-Cola KO 45.97 1,137 AllianzGI Conv & Incm NCV 6.65 7.10 +6.8 30.0 Wstrn Asset Glbl Hi Inco EHI NA 10.17 NA 8.7 Pioneer Mun Hi Inc Adv Tr MAV 11.92 11.26 -5.5 5.3 Griffin Inst Access Cd:A NA NA NA NS
–0.35 –0.36 –2.48 J.P. Morgan Chase JPM 101.41 1,202 AllianzGI Conv & Incm II NCZ 5.96 6.25 +4.9 30.3 Wstrn Asset High Inco II HIX NA 7.09 NA 8.7 Pioneer Mun Hi Incm Tr MHI 12.81 11.66 -9.0 5.1 Griffin Inst Access Cd:C NA NA NA NS
–0.45 –0.25 –1.72 Nike NKE 55.71 1,107 AllianzGI Div Incm ACV 22.73 22.29 -1.9 43.3 Wstrn Asset Opp Fd HIO NA 5.07 NA 7.2 Putnam Tr PMM 7.97 7.45 -6.5 5.4 Griffin Inst Access Cd:F NA NA NA NS
AllianzGI Equity & Conv NIE 22.92 20.76 -9.4 28.1 West Asst HY Def Opp Fd HYI NA 15.41 NA 7.8 PutnamMuniOpportunities PMO 13.35 12.49 -6.4 5.2 Griffin Inst Access Cd:I NA NA NA NS
–0.53 –0.46 –3.17 Procter & Gamble PG 86.58 1,062 Calamos Conv Hi Inco Fd CHY 11.96 11.99 +0.3 32.4 Other Domestic Taxable Bond Funds Wstrn Asset Mngd Muni MMU NA 13.99 NA 5.4 Griffin Inst Access Cd:L NA NA NA NS
11.35 11.65 +2.6 35.3 Apollo Tactical Incm Fd AIF 17.51 16.09 -8.1 8.8 WesternAssetMunTrFund MTT NA 21.85 NA 4.9 PIMCO Flexible Cr I;Inst NA NA NA NS
–0.63 –0.53 –3.65 Exxon Mobil XOM 83.18 948 Calamos CHI
World Equity Funds Ares Dynamic Credit Alloc ARDC NA 16.31 NA 6.9 Single State Muni Bond PionrILSInterval 9.62 NA NA 10.5
–0.86 –1.18 –8.12 Caterpillar CAT 136.63 1,517 Barings Corp Investors MCI NA 15.74 NA 3.7 BlackRock CA Municipal Tr BFZ 15.27 14.29 -6.4 5.1 WA Middle Mkt Dbt 752.69 NA NA 11.2
Alpine Tot Dyn Div AOD 9.94 9.07 -8.8 39.0
–1.07 –2.52 –17.35 3M MMM 232.22 1,324 BlackRock Multi-Sector IT BIT 20.08 18.43 -8.2 9.5 BlkRk MuniHldgs CA Qlty MUC 15.48 14.71 -5.0 5.0 WA Middle Mkt Inc WMF777.56 NA NA 11.2
Cdn Genl Inv CGI 31.80 22.90 -28.0 33.8
BlackRock Taxable Mun Bd BBN 23.77 23.40 -1.6 6.8 Blkrck MunHl NJ Qlty MUJ 15.64 14.33 -8.4 5.6 Other Domestic Taxable Bond Funds
–1.20 –1.70 –11.71 Johnson & Johnson JNJ 140.08 1,240 China Fund CHN 23.45 21.33 -9.0 38.7
Capstone Church Capital 11.43 NA NA 1.5
Clough Global Opp Fd GLO 12.17 11.54 -5.2 44.2 Doubleline Oppor Credit DBL 21.96 22.96 +4.6 8.7 BlRk MuHldg NY Qlty MHN 14.85 13.74 -7.5 5.0
–1.37 –2.10 –14.46 IBM IBM 151.58 939 CION Ares Dvsfd Crdt;A NA NA NA NS
EtnVncTxAdvGblDiv ETG 18.26 17.24 -5.6 36.3 Duff & Phelps Utl & Cp Bd DUC 9.75 9.15 -6.2 6.5 BlkRk MuniYld CA Fd MYC 15.55 15.22 -2.1 5.1
CION Ares Dvsfd Crdt;C NA NA NA NS
–1.76 –2.95 –20.31 Home Depot HD 164.39 1,248 EatonVance TxAdv Opport ETO 24.66 24.76 +0.4 35.8 EtnVncLtdFd EVV 15.16 13.91 -8.2 7.1 BlkRk MuniYld CA Quality MCA 15.70 14.92 -5.0 5.1
CION Ares Dvsfd Crdt;I NA NA NA NS
–1.90 –1.38 –9.50 DWDP 71.16 First Trust Dynamic Eur FDEU 19.40 18.85 -2.8 37.6 Franklin Ltd Duration IT FTF NA 11.91 NA 11.4 BlkRk MuniYld MI Qlty MIY 15.43 14.01 -9.2 5.5
DowDuPont 1,270 CNR Select Strategies 7.87 NA NA NS
Gabelli Glbl Multimedia GGT 9.10 8.79 -3.4 34.9 GuggenheimTaxableMuni GBAB 23.44 22.44 -4.3 6.8 BlRk Muyld NY Qlty MYN 14.23 12.98 -8.8 5.0 GL Beyond Income 3.68 NA NA NE
–2.97 –1.45 –9.98 Verizon VZ 47.42 932 GDL Fund GDL 11.65 10.08 -13.5 13.7 Invesco High Incm 2023 IHIT 10.11 10.10 -0.1 NS Eaton Vance CA Mun Bd EVM 12.39 11.79 -4.8 4.9 Palmer Square Opp Income NA NA NA 5.0
–3.13 –0.65 –4.48 General Electric GE 20.14 654 India Fund IFN 31.80 28.37 -10.8 28.6 John Hancock Investors JHI 18.79 17.88 -4.8 7.2 Invesco CA Value Mun Incm VCV 13.47 12.82 -4.8 5.0 Resource Credit Inc:A 11.15 NA NA 6.4
–3.74 –2.18 –15.01 Merck MRK 56.06 973 Japan Sml Cap JOF 14.57 13.13 -9.9 33.8 KKR Income Opps Fund KIO NA 16.45 NA 9.4 Invesco PA Value Mun Incm VPV 14.04 12.05 -14.2 5.1 Resource Credit Inc:C 11.27 NA NA 5.7
Korea Fund KF 49.74 44.39 -10.8 37.5 MFS Charter MCR 9.34 8.55 -8.5 8.7 Invesco Inv Grade NY Muni VTN 14.62 13.61 -6.9 5.0 Resource Credit Inc:I 11.18 NA NA 6.7
*Based on Composite price. DJIA is calculated on primary-market price. Mexico Fund MXF 15.79 NA 1.1 MFS Multimkt MMT 6.68 6.14 -8.1 8.7 Nuveen CA AMT-Free Qual NKX NA 15.45 NA 5.0 Resource Credit Inc:L 11.14 NA NA NS
Source: WSJ Market Data Group; FactSet. Morgan-Stanley Asia-Pac APF 20.49 18.13 -11.5 29.6 Nuveen Build Am Bd Fd NBB NA 21.65 NA 5.7 Nuveen CA Muni Value NCA NA 10.47 NA 3.9 Resource Credit Inc:W 11.15 NA NA 6.3
Time to change
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business travel.
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THE WALL STREET JOURNAL. Monday, November 6, 2017 | B7
MARKETS DIGEST
Dow Jones Industrial Average S&P 500 Index New to the Market IPO Scorecard B8
Last Year ago Last Year ago
23539.19 s 105.00, or 0.45% last week Trailing P/E ratio 21.28 19.56 2587.84 s 6.77, or 0.26% last week Trailing P/E ratio 24.33 23.02 Public Offerings of Stock
High, low, open and close for each of P/E estimate * 19.35 16.91 High, low, open and close for each of P/E estimate * 19.39 17.78
the past 52 weeks Dividend yield 2.18 2.66 the past 52 weeks Dividend yield 1.92 2.20 IPOs in the U.S. Market
All-time high 23539.19, 11/03/17 All-time high: 2587.84, 11/03/17
Initial public offerings of stock expected this week; might include some
offerings, U.S. and foreign, open to institutional investors only via the
Current divisor 0.14523396877348 Rule 144a market; deal amounts are for the U.S. market only
23000 2575
Symbol/ Pricing
Expected primary Shares Range($)
22000 2500 pricing date Filed Issuer/business exchange (mil.) Low/High Bookrunner(s)
65-day moving average 65-day moving average 11/6 10/31 Meridian Bank 2.2 17.00/ Sandler O'Neill & Prtnrs
Full-service bank. Nq 19.00
21000 2425
11/7 10/13 CBTX CBTX 2.4 24.00/ Stephens, Stifel
Bank. Nq 26.00
20000 2350 11/7 10/13 Fireman IFRX 6.7 14.00/ JPM, Leerink Prtnrs,
Clinical-stage Nq 16.00 BMO Cptl Mkts
Week's high biopharmaceutical co.
19000 2275 11/7 10/13 Four Seasons Education (Cayman) FEDU 5.1 9.00/ MS, Citi,
DOWN UP
Provider of after school N 11.00 China
t
200-day moving average 11/7 10/4 Metropolitan Bank Holding MCB 3.1 31.00/ JPM, Stifel
Bank holding company. N 34.00
Week's low 17000 2125 11/8 10/13 Apellis Pharmaceuticals APLS 10.7 13.00/ Citi, JPM, Evercore
Bars measure the point change from Monday's open Pharmaceutical company Nq 15.00
developing treatments for
acute & chronic
16000 2050 indications.
N D J F M A M J J A S O N N D J F M A M J J A S O N
11/8 10/13 Sogou SOGO 45.0 11.00/ JPM, Credit Suisse,
Primary Software company N 13.00 GS, China Int'l
NYSE weekly volume, in billions of shares market Composite developing an internet
t
t
WSJ
Auction of 30 year bond;
Australia S&P/ASX 200 5959.90 0.96 5156.6 • 5959.9 5.2 quotes are available on
announced on November 1; settles on November 15
China Shanghai Composite 3371.74 –1.32 3052.79 • 3416.81 8.6 WSJ.com. Track most-
Hong Kong Hang Seng 28603.61 0.58 21574.76 • 28711.76 30.0 .COM active stocks, new
Public and Municipal Finance
India S&P BSE Sensex 33685.56 1.59 25765.14 • 33685.56 26.5 highs/lows, mutual
Deals of $ 150 million or more expected this week
Japan Nikkei Stock Avg 22539.12 2.41 16251.54 • 22539.12 17.9 funds and ETFs.
Final Total Rating Bookrunner/
Malaysia FTSE Bursa Malaysia KLCI 1740.93 –0.30 1616.64 • 1792.35 6.0 Plus, get deeper money-flows data and Sale maturity Issuer ($mil.) Fitch Moody’s S&P Bond Counsel(s)
Singapore Straits Times 3382.31 –0.12 2787.27 • 3391.61 17.4 email delivery of key stock-market
South Korea Kospi 2557.97 2.46 1958.38 • 2557.97 26.2 data. Nov. 7 prelim. Massa- 200.0 N.R. N.R. N.R. Barclays/—
Taiwan Weighted 10800.77 0.86 8931.03 • 10806.36 16.7
All are available free at
chusetts
Source: SIX Financial Information;WSJ Market Data Group WSJMarkets.com Nov. 7 prelim. San Diego 204.5 N.R. N.R. N.R. J P Morgan
Assoc of Securities
Governments LLC/—
Consumer Rates and Returns to Investor Benchmark Yields and Rates
Nov. 8 Jan. 1, 2031 Pennsylvania 974.0 N.R. N.R. N.R. Preliminary/
U.S. consumer rates Selected rates Treasury yield curve Forex Race Dinsmore & Shohl/
A consumer rate against its 5-year CDs Yield to maturity of current bills, Yen, euro vs. dollar; dollar vs. Turner Law PC
benchmark over the past year notes and bonds major U.S. trading partners
Bankrate.com avg†: 1.47% Nov. 8 Oct. 1, 2047 Washoe- SD 252.2 N.R. N.R. N.R. Preliminary/
Barclays 2.35% 3.75% 10% Sherman & Howard
Five-year CD yields 1.50%
t Wilmington, DE 888-720-8756
3.00 WSJ Dollar index
EverBank 2.35% 5 s Nov. 10 prelim. California 225.0 N.R. N.R. N.R. M. Stanley/—
1.00 s
Jacksonville, FL 855-228-6755 2.25 0 Euro
Nov. 10 prelim. California 150.0 N.R. N.R. N.R. Wells Fargo
0.50 Home Savings Bank 2.35% Friday
t
t
1.50 Educational & Co/—
Federal-funds Salt Lake City, UT 801-487-0811 –5
Facs Auth
target rate 0.00 Synchrony Bank 2.35% 0.75 –10
t
Morristown, NJ 800-903-8154 One year ago s Yen Nov. 10 prelim. Fontana 206.0 N.R. N.R. N.R. Stifel
–0.50 0.00 –15 Redevelopment Nicolaus/—
N D J F MAM J J A S O N Goldman Sachs Bank USA 2.40% 1 3 6 1 2 3 5 710 30 2017 Agency
2017 New York, NY 855-730-7283 month(s) years
3-yr chg maturity Nov. 10 prelim. Harris Flood 198.0 N.R. N.R. N.R. Citi/—
Yield/Rate (%) 52-Week Range (%)
Interest rate Last (l)Week ago Low 0 2 4 6 8 High (pct pts) Sources: Ryan ALM; Tullett Prebon; WSJ Market Data Group Control Dt
Libor, 3-month 1.39 1.38 0.88 l 1.39 1.16 Spread +/- Treasurys,
Yield (%) in basis pts, 52-wk Range Total Return
Money market, annual yield 0.33 0.32 0.26 l 0.36 -0.09 Bond total return index Last Wk ago Last Low High 52-wk 3-yr Nov. 10 prelim. Los Angeles 300.0 N.R. N.R. N.R. Citi/—
Five-year CD, annual yield 1.47 1.47 1.19 l 1.47 -0.06 Comm College Dt
10-yr Treasury, Ryan ALM 2.343 2.426 -2.82 1.95
30-year mortgage, fixed† 3.92 3.99 3.61 l 4.33 -0.15
DJ Corporate 3.059 3.067 2.86 3.99 Nov. 10 prelim. Triborough 500.0 N.R. N.R. N.R. Siebert
15-year mortgage, fixed† 3.24 3.28 2.85 l 3.50 0.01
Aggregate, Barclays Capital 2.600 2.640 37 35 47 1.01 2.48 Bridge & Brandford
Jumbo mortgages, $424,100-plus† 4.29 4.36 4.23 l 4.88 -0.03 Tunnel Auth Shank & Co/—
High Yield 100, Merrill Lynch 5.240 5.172 324 307 490 9.129 4.134
Five-year adj mortgage (ARM)† 3.46 3.52 3.13 l 4.03 -0.31
Fixed-Rate MBS, Barclays 2.840 2.910 23 11 34 0.59 2.17
New-car loan, 48-month 3.01 3.02 2.85 l 3.36 -0.23 Nov. 10 prelim. Univ of Texas 300.0 N.R. N.R. N.R. J P Morgan
Muni Master, Merrill 1.984 1.977 9 -4 18 1.763 2.704
HELOC, $30,000 5.19 5.19 4.57 l 5.30 0.74 Sys Bd of Securities
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 5.532 5.496 317 303 407 5.641 5.420 Regents LLC/—
banks.† Excludes closing costs.
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 Source:Thomson Reuters/Ipreo
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
B8 | Monday, November 6, 2017 THE WALL STREET JOURNAL.
MARKETS BONDS
Global Government Bonds: Mapping Yields
SEC Quizzes Miami Firm Yields and spreads over or under U.S. Treasurys on benchmark two-year and 10-year government bonds in
selected other countries; arrows indicate whether the yield rose(s) or fell (t) in the latest session
Country/
Coupon (%) Maturity, in years
Yield (%)
Latest(l) 0 20 40 60 80 100 120 Previous Month ago Year ago
Spread Under/Over U.S. Treasurys, in basis points
Latest Prev Year ago
BY JUSTIN BAER 2009. Mr. Walter sat on its odic review,” it said.
1.500 U.S. 2 1.621 s l 1.616 1.475 0.810
AND MARGOT PATRICK board until 2013. GPLA is now It isn’t known whether the 2.250 10 2.343 t l 2.349 2.321 1.814
owned by London-based LJ visit from U.S. regulators was
2.750 Australia 2 1.779 t l 1.827 1.967 1.641 15.9 21.1 83.1
U.S. securities regulators Partnership. related to a continuing SEC ex-
2.750 10 2.581 t l 2.664 2.852 2.310 23.8 31.5 49.6
recently asked a Miami During the SEC visit, ac- amination of Guggenheim
wealth manager about its ties cording to these people, regu- Partners, which manages more 0.000 France 2 -0.591 t l -0.590 -0.491 -0.594 -221.1 -220.6 -140.4
to both Guggenheim Part- lators queried GPLA about than $295 billion for insurance 2.750 10 0.617 t l 0.629 0.753 0.469 -172.5 -172.0 -134.6
ners LLC and a company that connections to Guggenheim companies, pension funds and 0.000 Germany 2 -0.754 t l -0.743 -0.701 -0.626 -237.5 -235.9 -143.6
purchased an oceanfront and ABS Capital Co. LLC, the other clients. A former 0.500 10 0.365 t l 0.376 0.464 0.157 -197.8 -197.3 -165.7
home with Guggenheim Chief Miami investment firm that Guggenheim employee has 0.050 Italy 2 -0.211 s l -0.212 -0.114 -0.009 -183.2 -182.8 -81.8
Executive Mark Walter, ac- joined with Mr. Walter to buy filed a complaint with the SEC 2.050 10 1.794 t l 1.804 2.162 1.637 -54.9 -54.5 -17.8
cording to people familiar an $85 million Malibu, Calif., over the handling of certain 0.100 Japan 2 -0.161 l -0.161 -0.113 -0.252 -178.1 -177.7 -106.2
with the matter. mansion last May from film transactions by the company, 0.100 10 0.053 l 0.053 0.076 -0.058 -229.0 -229.6 -187.3
The questions came during mogul David Geffen. ABS is according to documents re- 2.750 Spain 2 -0.363 s l -0.374 -0.287 -0.199 -198.4 -199.0 -100.9
an appearance late last month owned by Messrs. Stalman and viewed by The Wall Street
1.450 10 1.470 t l 1.483 1.710 1.239 -87.3 -86.6 -57.6
by the Securities and Ex- Ball and has offices in the Journal.
1.750 U.K. 2 0.448 s l 0.407 0.442 0.190 -117.3 -121.0 -61.9
change Commission to the Mi- same building as GPLA. The SEC declined to com-
ami offices of Guggenheim The visit was unannounced, ment about the visit. 4.250 10 1.267 s l 1.265 1.355 1.098 -107.5 -108.4 -71.6
Partners Latin America Inc., these people said. LJ in a A Guggenheim Partners Source: Tullett Prebon
these people said. statement said the SEC visit spokesman declined to com- Corporate Debt
GPLA was formed by Pablo was a periodic review. “We ment and referred questions in that same company’s share price.
Stalman and Juan Ball, who cannot comment on questions to GPLA. ABS said no one at
built the business within posed by the SEC but they its company has been con- Investment-grade spreads that tightened the most…
Spread*, in basis points Stock Performance
Guggenheim Partners before cover a broad range of topics tacted by the SEC or any other Issuer Symbol Coupon (%) Maturity Current One-day change Last week Close ($) % chg
buying parts of it starting in as would be expected in a peri- regulator. Teva TEVA 6.150 Feb. 1, ’36 368 –18 n.a. … …
Commonwealth Bank of Australia CBAAU 2.050 Sept. 18, ’20 34 –13 n.a. ... ...
Fifth Third Bancorp* FITB 4.900 Sept. 30, ’49 87 –12 94 29.12 –0.48
Insider-Trading Spotlight Scripps Networks Interactive SNI 2.800 June 15, ’20 77 –10 74 79.61 –1.68
Trading by ‘insiders’ of a corporation, such as a company’s CEO, vice president or director, potentially conveys Becton Dickinson And Co BDX 2.675 Dec. 15, ’19 56 –8 56 224.41 0.17
new information about the prospects of a company. Insiders are required to report large trades to the SEC Capital One Financial COF 3.300 Oct. 30, ’24 92 –8 n.a. 91.60 –0.92
within two business days. Here’s a look at the biggest individual trades by insiders, based on data received by Societe Generale S.A. SOCGEN 4.250 April 14, ’25 144 –8 146 ... ...
Thomson Financial on November 3, and year-to-date stock performance of the company Standard Chartered STANLN 5.200 Jan. 26, ’24 135 –8 n.a. ... ...
KEY: B: beneficial owner of more than 10% of a security class CB: chairman CEO: chief executive officer CFO: chief financial officer
CO: chief operating officer D: director DO: director and beneficial owner GC: general counsel H: officer, director and beneficial owner …And spreads that widened the most
I: indirect transaction filed through a trust, insider spouse, minor child or other O: officer OD: officer and director P: president UT: VMware VMW 2.300 Aug. 21, ’20 65 27 65 117.94 –0.81
unknown VP: vice president Excludes pure options transactions Delphi Automotive DLPH 3.150 Nov. 19, ’20 56 25 n.a. 96.89 –2.44
Biggest weekly individual trades General Electric GE 5.550 May 4, ’20 56 24 n.a. 20.14 1.00
Based on reports filed with regulators this past week Teva Pharmaceutical Fin IV TEVA 2.250 March 18, ’20 225 22 140 … …
Becton Dickinson And Co BDX 3.125 Nov. 8, ’21 73 19 53 224.41 0.17
No. of shrs in Price range ($) $ Value
Date(s) Company Symbol Insider Title trans (000s) in transaction (000s) Close ($) Ytd (%) Pitney Bowes PBI 3.625 Sept. 15, ’20 282 19 n.a. 11.25 0.54
Xerox XRX 4.500 May 15, ’21 120 19 n.a. 29.06 –1.42
Buyers Qualcomm* QCOM 3.000 May 20, ’22 69 16 44 61.81 12.71
Oct. 27 Immune Design IMDZ P. Svennilson DOI 2,681 4.10 10,992 4.15 -24.5 High-yield issues with the biggest price increases…
Oct. 31-Nov. 2Lands' End LE E. Lampert BI 295 10.81-10.97 3,212 11.30 -25.4 Bond Price as % of face value Stock Performance
Oct. 25-27 Xencor XNCR J. Stafford BI 150 19.70-20.01 2,971 20.21 -23.2 Issuer Symbol Coupon (%) Maturity Current One-day change Last week Close ($) % chg
Oct. 31-Nov. 2 J. Stafford BI 50 19.11-19.81 979 Jones Energy Holdings JONE 6.750 April 1, ’22 80.875 3.13 75.500 1.36 7.94
Oct. 31 Omega Healthcare Investors OHI B. Korman D 100 28.24 2,824 28.39 -9.2 Global A&T Electronics GATSP 10.000 Feb. 1, ’19 87.000 2.75 n.a. ... ...
Oct. 27 Allegiant Travel ALGT J. Redmond P 11 138.28 1,521 132.25 -20.5 American Axle And Manufacturing AXL 6.500 April 1, ’27 104.250 2.13 102.500 18.94 5.11
Oct. 26 Walgreens Boots Alliance WBA J. Lederer D 20 67.00 1,340 66.87 -19.2 California Resources CRC 8.000 Dec. 15, ’22 69.625 2.06 65.250 12.04 4.51
Oct. 30 Charter Communications CHTR C. Winfrey CFO 3 323.61 1,003 335.43 16.5 Sanchez Energy SN 6.125 Jan. 15, ’23 86.500 1.75 83.500 4.63 6.68
Sprint Capital S 8.750 March 15, ’32 122.500 1.38 125.250 … …
Oct. 27 Sunesis Pharmaceuticals SNSS D. Misfeldt DI 400 2.00 800 3.00 -17.1
Kindred Healthcare KND 8.750 Jan. 15, ’23 97.750 1.00 98.900 5.90 –5.60
Oct. 25 Lockheed Martin LMT D. Akerson D 3 311.97-313.93 780 309.99 24.0 Bombardier BBDBCN 6.000 Oct. 15, ’22 99.125 0.78 99.065 ... ...
Oct. 27 Mid-America Apartment Communities MAA W. Sanders D 7* 100.07-100.17 701 103.39 5.6
Nov. 1 Education Realty Trust EDR R. Churchey CEO 20 35.01 700 35.68 -15.7 …And with the biggest price decreases
Oct. 25 TriplePoint Venture Growth TPVG S. Srivastava P 44 13.65 605 13.72 16.5 Revlon Consumer Products REV 6.250 Aug. 1, ’24 66.500 –7.38 74.311 … …
Oct. 25 J. Labe CEO 22 13.65 302 PetSmart PETM 7.125 March 15, ’23 72.000 –2.63 78.500 ... ...
Oct. 31 Integra LifeSciences Holdings IART B. Hill D 11 46.66 502 48.05 12.0 Frontier Communications FTR 11.000 Sept. 15, ’25 78.188 –2.31 84.750 7.41 –19.28
Oct. 31 Express Scripts Holding ESRX T. Wentworth CEO 8 61.13 489 60.54 -12.0
CenturyLink CTL 7.600 Sept. 15, ’39 87.625 –2.13 92.250 16.37 –6.24
Oct. 25-27 Cloudera CLDR M. Cole DI 30 14.80-15.39 452 15.71 -13.2 Teamhealth Holdings TMH 6.375 Feb. 1, ’25 85.250 –2.00 92.125 ... ...
Oct. 30-31 M. Cole DI 20 15.11-15.39 305 Concordia International CXRCN 9.500 Oct. 21, ’22 9.250 –1.75 12.500 ... ...
TreeHouse Foods THS 6.000 Feb. 15, ’24 104.000 –1.75 n.a. 42.16 –2.02
Sellers Pioneer Energy Services PES 6.125 March 15, ’22 83.250 –1.50 85.500 2.15 2.38
Oct. 30-31 Facebook FB J. Koum DI 2,600 180.08-180.09 468,227 178.92 55.5 *Estimated spread over 2-year, 3-year, 5-year, 10-year or 30-year hot-run Treasury; 100 basis points=one percentage pt.; change in spread shown is for Z-spread.
Oct. 17-27 REV Group REVG D. Cusumano D 10859* 26.09 283,331 25.61 2.4 Note: Data are for the most active issue of bonds with maturities of two years or more
Oct. 17-27 K. Marvin D 10859* 26.09 283,331 Sources: MarketAxess Corporate BondTicker; WSJ Market Data Group
Oct. 31 Loews L J. Tisch PI 1,395 48.40 67,515 49.61 5.9
Oct. 30-31 Restaurant Brands International QSR D. Schwartz CEO 709 64.49-64.56 45,697 65.66 37.8 Borrowing Benchmarks | WSJ.com/bonds
Oct. 26-30 Texas Instruments TXN R. Templeton CEO 450 96.16-97.11 43,430 97.98 34.3
Oct. 26-27
Oct. 27
B. Crutcher
S. Anderson
CO
O
264*
125
96.10-96.87
96.10
25,402
11,968
Money Rates November 3, 2017
Oct. 30-31 Twitter TWTR E. Williams D 2000* 20.72-21.53 42,121 19.90 22.1 Key annual interest rates paid to borrow or lend money in U.S. and international markets. Rates below are a
Oct. 30 Camping World Holdings CWH M. Lemonis CEOI 700 40.50 28,350 42.70 31.0 guide to general levels but don’t always represent actual transactions.
Oct. 25-27 Exelon M. Shattuck CB 567 40.05-40.27 22,751 40.94 15.4 Week —52-WEEK— Week —52-WEEK—
EXC Inflation Latest ago High Low Latest ago High Low
Oct. 30 Intel INTC S. Smith O 472 44.19-44.47 20,889 46.34 27.8 Sept. index Chg From (%)
level Aug. '17 Sept. '16 Treasury bill auction Six month 1.59017 1.57267 1.59017 1.24267
Oct. 30-Nov. 1Huntsman HUN J. Huntsman H 600* 31.58-32.32 19,031 31.72 66.2 One year 1.86289 1.84789 1.86317 1.55622
Oct. 30 J. Esplin O 429 31.54 13,515 4 weeks 1.020 1.005 1.300 0.240
U.S. consumer price index 13 weeks 1.130 1.105 1.180 0.350 Euro Libor
Oct. 30-31 Amphenol APH R. Norwitt CEO 220 85.89-86.36 18,942 87.33 30.0
All items 246.819 0.53 2.2 26 weeks 1.260 1.245 1.260 0.500 One month -0.400 -0.401 -0.376 -0.405
Oct. 31 ServiceNow NOW F. Slootman D 150 125.28-126.36 18,893 124.91 68.0 Core 252.941 0.19 1.7 Three month -0.378 -0.379 -0.322 -0.381
Oct. 31 Expedia EXPE V. Kaufman OD 120 122.02-124.84 14,788 123.05 8.6 Secondary market Six month -0.316 -0.322 -0.212 -0.322
International rates One year -0.234 -0.232 -0.075 -0.234
Nov. 1 Dollar Tree DLTR M. Brock CBI 150 90.77-91.67 13,669 93.75 21.5 Fannie Mae
Week 52-Week 30-year mortgage yields Euro interbank offered rate (Euribor)
* Half the transactions were indirect **Two day transaction Latest High Low
ago
p - Pink Sheets 30 days 3.462 3.554 3.865 3.032 One month -0.372 -0.372 -0.366 -0.375
Prime rates 60 days 3.483 3.587 3.899 3.063 Three month -0.329 -0.331 -0.311 -0.332
Buying and selling by sector Six month -0.276 -0.275 -0.210 -0.276
U.S. 4.25 4.25 4.25 3.50 Other short-term rates -0.184 -0.069 -0.191
Based on actual transaction dates in reports received this past week One year -0.191
Canada 3.20 3.20 3.20 2.70 Value 52-Week
Japan 1.475 1.475 1.475 1.475 Week 52-Week Latest Traded High Low
Sector Buying Selling Sector Buying Selling Latest ago high low
Policy Rates DTCC GCF Repo Index
Basic Industries 125,825 60,691,080 Finance 5,741,805 118,470,483 Call money
Euro zone 0.00 0.00 0.00 0.00 Treasury 1.196 29.600 1.366 0.244
Business services 0 12,604,367 Health care 2,489,487 92,703,898 Switzerland 0.50 0.50 0.50 0.50 3.00 3.00 3.00 2.25 MBS 1.201 115.280 1.506 0.257
Capital goods 0 0 Industrial 780,059 73,789,458 Britain 0.50 0.25 0.50 0.25 Open Implied
Consumer durables 0 36,596,616 Media 0 17,730,845 Australia 1.50 1.50 1.50 1.50 Commercial paper (AA financial) Settle Change Interest Rate
90 days 1.31 1.31 1.31 0.62
Consumer nondurables 224,515 33,718,737 Technology 464,492 264,983,511 Overnight repurchase DTCC GCF Repo Index Futures
Consumer services 1,604,915 54,013,813 Transportation 1,521,081 21,009,894 U.S. 1.21 1.11 1.38 0.15 Libor Treasury Nov 98.840 unch. 8062 1.160
Energy 391,578 4,818,707 Utilities 0 44,396,353 One month 1.24322 1.24233 1.24333 0.53533 Treasury Dec 98.700 -0.005 2038 1.300
U.S. government rates Three month 1.39194 1.38009 1.39194 0.88233 Treasury Jan 98.605 -0.005 450 1.395
Sources: Thomson Financial; WSJ Market Data Group Discount
1.75 1.75 1.75 1.00 Notes on data:
U.S. prime rate is the base rate on corporate loans posted by at least 70% of the 10 largest U.S. banks,
Cash Prices | WSJ.com/commodities Friday, November 03, 2017 Federal funds and is effective June 15, 2017. Other prime rates aren’t directly comparable; lending practices vary
widely by location; Discount rate is effective June 15, 2017. DTCC GCF Repo Index is Depository
Effective rate 1.1800 1.1700 1.2000 0.3500
These prices reflect buying and selling of a variety of actual or “physical” commodities in the marketplace— High 1.3125 1.3125 1.3125 0.5625
Trust & Clearing Corp.'s weighted average for overnight trades in applicable CUSIPs. Value traded is in
billions of U.S. dollars. Federal-funds rates are Tullett Prebon rates as of 5:30 p.m. ET. Futures on the
separate from the futures price on an exchange, which reflects what the commodity might be worth in future Low 1.0500 1.0000 1.1600 0.2500 DTCC GCF Repo Index are traded on NYSE Liffe US.
months. Bid 1.1600 1.1600 1.1700 0.3000 Sources: Federal Reserve; Bureau of Labor Statistics; DTCC; SIX Financial Information;
Friday Friday Friday Offer 1.1800 1.1700 1.1900 0.3200 General Electric Capital Corp.; Tullett Prebon Information, Ltd.
Engelhard fabricated 20.6400 Corn gluten meal,Midwest-u,w 473.0
Energy Handy & Harman base 16.8300 Cottonseed meal-u,w 230
21.0380 88
Propane,tet,Mont Belvieu-g
Butane,normal,Mont Belvieu-g
0.9573
1.0401
Handy & Harman fabricated
LBMA spot price £13.0500
Hominy feed,Cent IL-u,w
Meat-bonemeal,50% pro Mnpls-u,w 220 Dividend Changes
NaturalGas,HenryHub-i 2.740 (U.S.$ equivalent) 17.0850 Oats,No.2 milling,Mnpls-u 2.9300
NaturalGas,TranscoZone3-i 2.730 Coins,wholesale $1,000 face-a 12900 Rice, 5% Broken White, Thailand-l,w 370.00 Dividend announcements from November 3.
NaturalGas,TranscoZone6NY-i 1.490 Other metals Rice, Long Grain Milled, No. 2 AR-u,w 24.00 Amount Payable / Amount Payable /
NaturalGas,PanhandleEast-i 2.490 LBMA Platinum Price PM *931.0 Sorghum,(Milo) No.2 Gulf-u 7.6913 Company Symbol Yld % New/Old Frq Record Company Symbol Yld % New/Old Frq Record
NaturalGas,Opal-i 2.620 Platinum,Engelhard industrial 930.0 SoybeanMeal,Cent IL,rail,ton48%-u 309.90 PIMCO Global StocksPLUS PGP 10.8 .14668 M Dec01 /Nov13
NaturalGas,MarcellusNE PA-i 0.750 Platinum,Engelhard fabricated 1030.0 Soybeans,No.1 yllw IL-bp,u 9.3500 Increased
PIMCO HiInco PHK 12.4 .0807 M Dec01 /Nov13
NaturalGas,HaynesvilleN.LA-i 2.680 Palladium,Engelhard industrial 1005.0 Wheat,Spring14%-pro Mnpls-u 7.5725 Artesian Resources Cl A ARTNA 2.3 .2352 /.2317 Q Nov22 /Nov13
PIMCO Incm Strategy Fd II PFN 9.0 .08 M Dec01 /Nov13
Coal,C.Aplc.,12500Btu,1.2SO2-r,w 57.850 Palladium,Engelhard fabricated 1105.0 Wheat,No.2 soft red,St.Louis-bp,u 4.3350 Cedar Fair Dep Rec FUN 5.4 .89 /.855 Q Dec15 /Dec04
PIMCO Inco Str Fd PFL 9.0 .09 M Dec01 /Nov13
Coal,PwdrRvrBsn,8800Btu,0.8SO2-r,w 11.750 Aluminum, LME, $ per metric ton *2152.0 Wheat - Hard - KC (USDA) $ per bu-u 3.6925 Cogent Communications CCOI 4.5 .48 /.46 Q Dec04 /Nov17
Wheat,No.1soft white,Portld,OR-u 5.2750 Community Healthcare Tr CHCT 5.7 .395 /.3925 Q Dec01 /Nov17 PIMCO Income Opportunity PKO 8.7 .19 M Dec01 /Nov13
Copper,Comex spot 3.1105
Metals Iron Ore, 62% Fe CFR China-s 59.4 DCT Industrial Trust DCT 2.4 .36 /.31 Q Jan04 /Dec22 Pimco Muni Inc II PML 5.9 .065 M Dec01 /Nov13
Gold, per troy oz Shredded Scrap, US Midwest-s,w 286 Food Entercom Commun ETM 3.4 .09 /.075 Q Dec15 /Nov28 PIMCO Muni Inc III PMX 5.7 .05575 M Dec01 /Nov13
Enviva Partners 8.4 .615 /.57 Nov29 /Nov15 PIMCO MuniFd PMF 5.4 .05967 M Dec01 /Nov13
Engelhard industrial 1280.82 Steel, HRC USA, FOB Midwest Mill-s 620 Beef,carcass equiv. index EVA Q
j2 Global JCOM 2.1 .395 /.385 Q Dec05 /Nov17 PIMCO NY Muni PNF 5.3 .057 M Dec01 /Nov13
Engelhard fabricated 1376.88 Fibers and Textiles choice 1-3,600-900 lbs.-u 187.76 PIMCO NY Muni II PNI 5.0 .05069 M Dec01 /Nov13
Handy & Harman base 1267.20 select 1-3,600-900 lbs.-u 174.78 Kennedy-Wilson Holdings KW 3.9 .19 /.17 Q Jan04 /Dec29
Motorola Solutions MSI 2.2 .52 /.47 Q Jan12 /Dec15 PIMCO NY Muni III PYN 5.1 .04225 M Dec01 /Nov13
Handy & Harman fabricated 1406.59 Burlap,10-oz,40-inch NY yd-n,w 0.6100 Broilers, National comp wghtd-u,w 0.8635
NRG Yield Cl A NYLD.A 6.1 .288 /.28 Q Dec15 /Dec01 PIMCO Strat Income Fund RCS 9.4 .072 M Dec01 /Nov13
LBMA Gold Price AM *1276.40 Cotton,1 1/16 std lw-mdMphs-u 0.6797 Butter,AA Chicago 2.2325
NRG Yield Cl C NYLD 6.0 .288 /.28 Q Dec15 /Dec01 WstAssetClymr InflLnk Sec WIA 3.6 .0345 M Nov30 /Nov15
LBMA Gold Price PM *1279.20 Cotlook 'A' Index-t *79.00 Cheddar cheese,bbl,Chicago 171.50
171.50 PBF Logistics PBFX 9.4 .48 /.47 Q Nov29 /Nov13 WstAstClymr InfLnkd Fd WIW 3.8 .036 M Nov30 /Nov15
Krugerrand,wholesale-e 1319.34 Hides,hvy native steers piece fob-u 68.500 Cheddar cheese,blk,Chicago
Maple Leaf-e 1332.03 Wool,64s,staple,Terr del-u,w n.a. Milk,Nonfat dry,Chicago lb. 72.00 Sabra Healthcare REIT SBRA 10.8 .5201 /.35989 Q Nov30 /Nov15
STAG Industrial STAG 5.0 .1183 /.1175 M Feb15 /Jan31
Stocks
American Eagle-e 1332.03 Cocoa,Ivory Coast-w n.a.
Mexican peso-e 1537.55
Grains and Feeds Coffee,Brazilian,Comp 1.2562 Vectren Corp VVC 2.7 .45 /.42 Q Dec01 /Nov15 Landmark Bancorp LARK 2.6 5.00% Dec15 /Dec01
Austria crown-e 1246.48 Barley,top-quality Mnpls-u n.a. Coffee,Colombian, NY 1.4537 Reduced Foreign
Austria phil-e 1332.03 Bran,wheat middlings, KC-u 74 Eggs,large white,Chicago-u 0.8950 Bank of Butterfield NTB 3.5 .32 Q Nov27 /Nov13
Flour,hard winter KC 15.60 CBL & Assocs Properties CBL 13.5 .20 /.265 Q Jan16 /Dec29
Silver, troy oz. Corn,No. 2 yellow,Cent IL-bp,u 3.1500 Terra Nitrogen TNH 6.2 1.36 /1.60 Q Nov29 /Nov15 BCE Inc BCE 4.7 .56057 Q Jan15 /Dec15
Engelhard industrial 17.2000 Corn gluten feed,Midwest-u,w 93.2 Hams,17-20 lbs,Mid-US fob-u 0.77 BT Group ADR BT 3.8 .31678 SA Feb12 /Dec29
Hogs,Iowa-So. Minnesota-u 66.61 Funds and investment companies Canadian Natural Res CNQ 2.4 .21485 Q Jan01 /Dec12
Pork bellies,12-14 lb MidUS-u n.a. Advnt Clymr Enh Grth LCM 9.8 .21 Q Nov30 /Nov15 Cenovus Energy CVE 1.5 .03896 Q Dec29 /Dec15
IPO Scorecard Pork loins,13-19 lb MidUS-u 0.9185 AdvntClymr Convertible II AGC 9.2 .047 M Nov30 /Nov15 Enbridge Inc ENB 5.2 .47528 Q Dec01 /Nov15
Steers,Tex.-Okla. Choice-u 125.00 AdvntClymrFd AVK 8.6 .1154 M Nov30 /Nov15
Performance of IPOs, most-recent listed first Steers,feeder,Okla. City-u,w 165.75
Gildan Activewear GIL 1.3 .0935 Q Dec11 /Nov16
Dreyfus Mun Bd Infr Fd DMB 4.9 .053 M Dec01 /Nov17 Maxar Technologies MAXR 1.9 .28829 Q Dec29 /Dec15
% Chg From % Chg From
Fats and Oils Ellsworth Growth & Income ECF 4.7 .11 Q Dec15 /Nov14 Melco Resorts & Ent ADR MLCO 1.4 .09 Q Nov30 /Nov14
Company SYMBOL Friday3s Offer 1st-day Company SYMBOL Friday3s Offer 1st-day
IPO date/Offer price close ($) price close IPO date/Offer price close ($) price close
Fiduciary/Clymr Opp Fd FMO 14.2 .4308 Q Nov30 /Nov15 MercadoLibre MELI 0.2 .15 Q Jan16 /Dec31
Corn oil,crude wet/dry mill-u,w 34.5000 Fidus Investment FDUS 9.5 .04 Dec27 /Dec20 Navios Marit Acq NNA 15.0 .05 Q Dec12 /Dec06
Aquantia 9.51 5.7 ... Altair Engineering 19.37 49.0 5.8 Grease,choice white,Chicago-h 0.2300 Fidus Investment FDUS 9.5 .39 Q Dec27 /Dec20
AQ Nov. 3/$9.00 ALTR Nov. 1/$13.00 Open Text OTEX 1.5 .132 Q Dec20 /Dec01
Lard,Chicago-u 0.3600 Guggenheim Credit All Fd GGM 9.7 .1813 M Nov30 /Nov15 Royal Dutch Shell ADR A RDS.A 5.9 .94 Q Dec20 /Nov17
Spero Thera 11.56 –17.4 0.5 Loma Negra 21.50 13.2 0.7 Soybean oil,crude;Centl IL-u 0.3305 Guggenheim Strat Opps Fd GOF 10.2 .1821 M Nov30 /Nov15 Royal Dutch Shell ADR B RDS.B 5.7 .94 Q Nov20 /Nov17
SPRO Nov. 2/$14.00 LOMA Nov. 1/$19.00 Tallow,bleach;Chicago-h 0.2550 Guggenheim Taxable Muni GBAB 6.7 .12573 M Nov30 /Nov15
Tallow,edible,Chicago-u n.a. NexPoint Credit Strat Fd NHF 10.1 .20 M Nov30 /Nov22 Special
Allena Pharmaceuticals 9.79 –30.1 –1.9 Merchants Bancorp 17.77 11.1 3.9
ALNA Nov. 2/$14.00 MBIN Oct. 30/$16.00 PCM Fund PCM 8.0 .08 M Dec01 /Nov13 Nathan's Famous NATH 5.00 Jan04 /Dec22
KEY TO CODES: A=ask; B=bid; BP=country elevator PIMCO California Mun II PCK 5.6 .0473 M Dec01 /Nov13 Southside Bancshares SBSI 3.2 .02 Nov30 /Nov16
Funko 7.00 –41.7 –1.0 ForeScout Tech 25.00 13.6 –2.0 bids to producers; C=corrected; E=Manfra,Tordella & PIMCO California Mun III PZC 5.2 .045 M Dec01 /Nov13
FNKO Nov. 2/$12.00 FSCT Oct. 27/$22.00 Brooks; G=ICE; H=Hurley Brokerage; I=Natural Gas PIMCO California Muni PCQ 5.4 .077 M Dec01 /Nov13 Suspended
Evoqua Water Tech 20.32 12.9 –2.7 VM Holding 18.10 13.1 4.0 Intelligence; L=livericeindex.com; M=midday; PIMCO Corporate & Incm PTY 9.2 .13 M Dec01 /Nov13 RAIT Finl Tr RAS Q Dec15 /
N=nominal; n.a.=not quoted or not available; R=SNL
AQUA Nov. 2/$18.00 NEXA Oct. 27/$16.00 Energy; S=Platts-TSI; T=Cotlook Limited; U=USDA; PIMCO Corporate & Incm PCN 7.9 .1125 M Dec01 /Nov13
W=weekly, Z=not quoted. *Data as of 11/2 PIMCO Dynamic Credit PCI 8.7 .16406 M Dec01 /Nov13 KEY: A: annual; M: monthly; Q: quarterly; r: revised; SA: semiannual;
Sources: WSJ Market Data Group; FactSet Research Systems Source: WSJ Market Data Group PIMCO Dynamic Income Fund PDI 8.8 .2205 M Dec01 /Nov13 S2:1: stock split and ratio; SO: spin-off.
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
THE WALL STREET JOURNAL. Monday, November 6, 2017 | B9
MARKETS
Currencies
U.S.-dollar foreign-exchange rates in late New York trading
$194.77
the new iPhone X hitting stores nal’s Market Data Group.
US$vs, US$vs,
and investors digesting Apple’s Meanwhile, Microsoft Corp. Fri YTDchg Fri YTDchg
latest earnings report. The firm eclipsed its dot-com era market Country/currency in US$ per US$ (%) Country/currency in US$ per US$ (%)
delivered its best quarterly cap of $600 billion and is now Americas Vietnam dong .00004403 22711 –0.3
growth in two years, fueled by flirting with the $650 billion Argentina peso .0567 17.6350 11.1 Europe
strong sales in all of its key mark. Brazil real .3017 3.3144 1.8 Czech Rep. koruna .04520 22.125 –13.9
For Apple, this year rivals Canada dollar .7835 1.2763 –5.1 Denmark krone .1560 6.4123 –9.3
The share price Apple needs to reach to MONEYBEAT 2012 as one of the best for the Chile peso
Colombia peso
.001576 634.50
.0003292 3037.50
–5.3
1.2
Euro area euro
Hungary forint
1.1610 .8614 –9.4
.003735 267.73 –9.0
become the first $1 trillion public stock in the company’s history. If Ecuador US dollar 1 1 unch Iceland krona .009405 106.33 –5.9
products and a rebound in the it hits $900 billion before 2017
company critical China market. ends, it will mark the second
Mexico peso
Peru new sol
.0521 19.2034
.3081 3.246
–7.4
–3.2
Norway krone
Poland zloty
.1223 8.1765 –5.4
.2735 3.6566 –12.7
Generally positive reviews of time that Apple will have Uruguay peso .03421 29.2300 –0.4 Russia ruble .01694 59.024 –3.7
the firm’s 10th-anniversary line reached multiple $100 billion Venezuela b. fuerte .099392 10.0612 0.7 Sweden krona .1186 8.4335 –7.4
of iPhones have also helped milestones in the same year. Asia-Pacific Switzerland franc .9994 1.0006 –1.8
Turkey lira .2573 3.8864 10.3
boost Apple shares recently. For After taking nearly three de- Australian dollar .7650 1.3072 –5.9
.0371 26.9285 –0.6
WSJ
Pakistan rupee .00950 105.280 Saudi Arabia riyal
ting the iPhone maker within worth $1 trillion, based on the as the only U.S. companies to MoneyBeat blog Philippines peso .0195 51.282 3.4 South Africa rand .0703 14.2236 3.9
striking distance of reaching updated share count the com- reach $700 billion in market value posts, go to Singapore dollar .7327 1.3649 –5.7
$900 billion in market value. The pany released Friday. since 2000, and maybe ever, ac- .COM blogs.wsj.com/ South Korea won .0008958 1116.29 –7.6 Close Net Chg % Chg YTD%Chg
stock needs to hit $175.30 for Shares rose 2.6% Friday with cording to The Wall Street Jour- MoneyBeat Sri Lanka rupee .0065117 153.57 3.5 WSJ Dollar Index 87.96 0.24 0.27 –5.36
Taiwan dollar .03314 30.171 –7.0 Sources: Tullett Prebon, WSJ Market Data Group
Thailand baht .03015 33.170 –7.4
MARKETS
Global Growth Boosts Oil to 2-Year High
Pickups in industrial prices of $60 to $65 a barrel, and
Lift in Demand he anticipates that U.S. crude
activity, employment, prices could climb to $57 or $58
U.S. crude prices are trading at their highest level in more than two years on signs that global consumption of fuel will pick up.
shipping increase a barrel by the end of the year.
$60 a barrel Many expected demand
demand for fuel would be relatively tepid this
55
Nymex crude-oil WTI price year. The International Energy
BY ALISON SIDER 50 Agency predicted in January that
45
oil demand would grow by 1.3
Oil prices reached their high- million barrels a day this year, a
est level in more than two years 40 slowdown from 2016’s growth
last week as signs increased that 35 rate. The agency revised its fore-
global growth will continue to cast upward in September and is
boost demand for the extra oil 30 now predicting demand growth
and fuel that have weighed on 25 of 1.6 million barrels a day this
the market. 2015 ’16 ’17 year.
Economies around the world “There were a lot more ques-
are expanding simultaneously All 45 countries tracked by the U.S. motorists increased driving, World oil demand is expected to But a backlog of untapped tion marks around the global
for the first time in a decade. In- OECD are set to grow for the using more gasoline. rise this year. wells could bring a surge of economy—the year got off to a
dustrial activity is picking up, in- first time in a decade. production if prices keep rising. very slow start economically,”
creasing the need for diesel. said Leo Grohowski, chief invest-
More vessels laden with goods Number of countries with growth* Vehicle miles traveled Global demand† Drilled but uncompleted wells ment officer at BNY Mellon
are crossing oceans, consuming in U.S. oil-producing regions Wealth Management. Now,
45 countries 290 billion vehicle miles 100 million barrels a day
bunker fuel. Falling unemploy- “most major countries and re-
40 6,250 oil and natural gas wells
ment means commuters are fill- 280 gions around the world are in
ing up tanks to head to work. All 35 80 6,000 growth mode—oil over $50 is re-
point to growing petroleum de- 270 flecting some of that.”
30 5,750
mand. 60 U.S. gasoline demand is at re-
“We’ve seen global growth 25 260 cords. Through August, drivers
5,500
clearly much stronger than we 20
were on track to outpace last
would have expected 12 months 250 40 year’s record number of vehicle
5,250
ago,” said Jason Thomas, direc- 15 miles traveled, the most recent
240 5,000
tor of research at Carlyle Group. 10 federal data show.
20
“It’s not just faster growth, it’s 230 4,750
There are risks on the hori-
faster growth in areas that hap- 5 zon: OPEC’s production cut
pen to be oil consuming,” like 0 220 0 4,500 agreement is set to expire in
trade and industrial activity, he 2007 ’10 ’15 ’17 2015 ’16 ’17 ’14 ’15 ’16 ‘17 2016 ’17 March, and investors are eyeing
said. 1Q 1Q the group’s Nov. 30 meeting to
Investors will be trying to *2017 is a forecast based off first- and second-quarter data for most countries. †2014 and 2015 data annual, all else quarterly. Fourth quarter 2017 is a forecast. hear whether it will be extended.
gauge whether the rally will con- Sources: WSJ Market Data Group (WTI); OECD (growth); U.S. Department of Transportation (miles); IEA (demand); EIA (wells) THE WALL STREET JOURNAL. Some are anxious that prices
tinue in the midst of a political could tumble if OPEC doesn’t
transition in Saudi Arabia or if Barclays PLC analysts said global oil supplies, but uncer- have reported higher earnings. its allies were curtailing. firmly commit to continuing its
the higher prices will lure new Friday that robust global growth tainty surrounding the political On Thursday, Royal Dutch Shell Since the end of March, crude cuts through the end of next
production that could cap fur- and unexpected supply disrup- transition could boost oil prices PLC said profit nearly tripled in inventories have fallen. The year.
ther increases. tions have resulted in “the most further, especially against the the third quarter from a year overhang of stored petroleum Flattening U.S. oil output has
Oil prices gained more than constructive oil price environ- backdrop of escalating geopoliti- earlier, helped by recovering oil compared with the five-year av- helped bolster oil prices in re-
15% in September and October— ment” since 2014. The bank now cal tensions. prices. erage level in the OECD that cent weeks, but higher prices
their best two months in over a expects Brent prices to average “The Kingdom’s oil policy— It is a remarkable turnaround OPEC is targeting has been cut in could bring on a wave of output
year. On Friday, both oil bench- $60 a barrel in the fourth quar- extend if not tighten restraint for crude prices, which plunged half since the beginning of the from shale fields. U.S. drillers
marks jumped more than 2% to ter and said they could make a until glutted stocks drain—is un- by more than 20% from Febru- year, according to OPEC’s fig- have drilled a massive backlog of
hit two-year highs. U.S. crude fu- push toward $70, though the an- likely to be disturbed, said Rob- ary to June amid doubts that ures. In the U.S., more than 80 wells that have yet to be tapped.
tures rose to $55.64 a barrel, alysts cautioned that such a ert McNally, president of Rapi- OPEC’s efforts would dent the million barrels have been Production from those wells
their highest since July 2, 2015. move would be short-lived. dan Energy Group. “Though the glut that has stressed the market drained from storage tanks since could come online quickly. Inves-
Brent, the global reference price, Saudi authorities arrested transition’s uncertainty and links for more than three years. March 31. tors and producing nations that
broke above $60 last week as in- royals and cabinet ministers Sat- to regional turbulence—with Investors who had been bank- Shrinking supplies and higher have become convinced that
vestors have latched on to signs urday in a crackdown on alleged tensions with Iran at the core— ing on a rally at the beginning of demand could align to keep shale is slowing could be due for
that a coordinated effort by the corruption that comes as Saudi could stoke crude bullish senti- the year became frustrated, fear- prices at these levels, said Nick a surprise, Citigroup analysts
Organization of the Petroleum leadership seeks to consolidate ment.” ing that U.S. shale producers Koutsoftas, portfolio manager at wrote.
Exporting Countries and other power. Analysts said the move Global growth also has helped could pounce on any brief rise in Cohen & Steers. Mr. Koutsoftas “We think they are wrong to
major exporters to curb output was unlikely to disrupt Saudi send the U.S. stock market to re- prices and pump enough oil to said the global economy is project weaker U.S. supply
is working. Arabia’s efforts to bring down cords this year. Oil companies replace much of what OPEC and strong enough to absorb Brent growth ahead,” the analysts said.
Email: heard@wsj.com
HEARD ON THE STREET FINANCIAL ANALYSIS & COMMENTARY WSJ.com/Heard
25
More Expansion
In Digital 20
Investors are rewarding
companies that are investing
chases and dividends, the av-
erage age of corporate assets
QILAI SHEN/BLOOMBERG NEWS
Downloads 15
to boost growth, and with
ample cash available, the
trend of strong business in-
has reached its highest level
in more than 50 years.
Importantly, the boost in
This year’s biggest video- vestment should persist. investment spending also re-
games aren’t getting as many One strong driver of the flects a shift in incentives.
players into stores. For com- 10 3.0% third-quarter GDP Shares of companies that pri-
panies like Electronic Arts 2015 ’16 ’17 growth rate was business in- oritized buybacks and divi-
and Activision Blizzard, that Note: ¥1 trillion=$150.9 billion vestment, which rose an an- dends strongly outperformed
is a good thing. Source: Wind Info THE WALL STREET JOURNAL. The People’s Bank of China nualized 3.9%. This was actu- from 2011 through 2015,
Both publishers benefited ally a slowdown from 6.7% Goldman finds. But since the
Follo
The E w
xper
A ts
© 2017 Dow Jones & Company. All Rights Reserved. THE WALL STREET JOURNAL. Convn Online Monday, November 6, 2017 | R1
e
DETA rsation
I LS , R2 INSIDE
Sons Than
This month’s Q&A column
looks at how 529 funds are
treated in the calculations
R6
Q&A
Grantham Waits for the Bear
U.S. stock valuations will revert,
in time, says the bubble-spotting
investor. Also: The manager of
Fidelity Low-Priced Stock Fund
will expand his universe.
R10, R8
FIXED-INCOME INVESTING
Has Your Bond Fund
Gone Out on a Limb?
Some of the workhorse funds
for bond investors could be
courting too much credit risk
R15
GÉRARD DUBOIS
SOME GIRLS MAY STILL be getting shortchanged cally, 50% of boy-only households had money saved NEWS CHALLENGE
Two studies find a when it comes to college savings. for their children’s college compared with only 39% of Foreign Currencies
Results from two financial-industry polls this year parents of girl-only households. Boy-only households Take our quiz to test your
gender divide. indicate that parents are saving more for boys than also reported contributing to their children’s college smarts on the dollar and rivals
for girls for higher education. These findings suggest savings more frequently, with 83% contributing at R18
Is it bias? Or that a gender divide—identified several decades ago least monthly compared with 70% of girl-only house-
in academic research—persists today in some cases. holds. (Mr. Young says the number of children in a SCOREBOARD
do parents have “We certainly see in society more broadly there are
gaps between incomes of men and women,” says
household didn’t appear to affect the results.)
These findings are consistent with a similar study October 2017 fund performance, total
more confidence Roger Young, a senior financial planner at mutual-
fund company T. Rowe Price, who was involved in an-
that T. Rowe Price commissioned three years earlier,
in which 53% of boys reported that their parents were
return by fund type. More on R8.
an app on his smartphone. DipJar, which went on the Hawaii but spends part of the their phones or credit cards.
As Mr. Johansen plays, he market in 2015. The device al- summer “busking” (performing Getting past that barrier,
displays a sign with his Venmo lows donors to tip using their for donations) in Copenhagen. though, can be an additional
account, a service of PayPal credit cards, in encrypted This shift, Mr. Allen laments, is thrill for the performers. Mr.
Holdings Inc. And the rate at transactions, based on a fixed “reducing the once-vibrant Johansen, the saxophonist,
which the digital tips have amount set by the performer. street performing scene that says he sometimes receives
come in, he says, has been a “A lot of people are thank- can add so much to a city.” private messages from Venmo
surprise. His largest single tip: ful that I have this machine so A nonprofit that advocates patrons who like his music.
a $25 whopper. “Almost every they don’t have to run to an for street performers has “It’s kind of exciting,” he
day,” he says, “I’ll look at my ATM and feel guilty,” says Mr. come up with a product to says, “that people are connect-
phone and see that people Deitz, who typically charges compete with commercial ser- ing with us in that way.”
have donated money.” $10 and has earned $1,860 vices like Venmo. Nick Broad
Mr. Johansen, 37, is one of through DipJar this year. and Liliana Maz, co-founders Mr. Kassel is a writer in
many street performers turn- Mr. Deitz also directs his of the Busking Project, created New York. He can be reached Working hard for the (digital) money: Doron Tirosh (drums), Mark
ing to digital payment services audience to his mobile page, an app and web service that at reports@wsj.com. Nelms (bass) and Chris Johansen (sax) in Madison Square Park.
SONIA PULIDO
interests will translate into daily activities. tween the survivor benefit and the increased
Whether the activities are doable and fulfilling benefit based on her own work record over
is the second step. (You might love spending those six months.) In short, a lot of money
time with your grandchildren, but that doesn’t will have been lost.
mean you can, or should, do it every day.) Note that Mr. Giannone started this journey Unfortunately, this person isn’t alone. Ask
One of my favorite taking-inventory stories before he retired from his first career. That’s Drug Data almost any financial planner about Social Se-
involves pizza. Several years ago, we profiled a important. If possible, field-test your retire- In 2017, Medicare will account for nearly curity slip-ups, and you get the same re-
New Jersey resident, Paul Giannone, who had ment plans before you retire. If you think you one-third of all spending on prescription drugs sponse: Many people fail to apply for a bene-
spent almost 30 years “toiling” (his word) in want to spend time teaching, or RVing, or in the U.S. compared with one-fifth of total fit simply because they don’t know or
information technology. “I picked my career making pizza—wonderful. But try it while spending 10 years ago: understand Social Security’s complicated
because I made good money,” he told us, “but you’re still working to see if the idea makes rules. A classic example: the divorced spouse
I had absolutely no passion for it.” sense. If not, you can start exploring other in- Medicare Medicaid Consumer-out-of-pocket who doesn’t realize when or how she or he
What he did love was pizza—in particular, terests. Other payers Private health insurance can collect benefits based on a former
the thin-crust pies served up in the restau- spouse’s earnings.
i i i
rants of his childhood in Brooklyn, N.Y. Gradu- And don’t blame the Social Security Ad-
ally, in his late 40s and early 50s, Mr. Gian- I turn 65 next year and will enroll in Medi- 20% ministration. The agency knows a good deal
31%
none began toying with the idea of opening care. My question is whether I need to enroll about you (date of birth, earnings, taxes,
his own pizzeria. He became an avid reader of, in Medicare Part D. I don’t take any prescrip- 45% $236 8% 43% $364 etc.), but it “knows nothing about your fam-
and contributor to, pizza blogs, restaurant-re- tion drugs, and I would like to avoid paying billion billion* ily—absolutely nothing,” notes Laurence J.
view sites and chef forums; he sampled dishes premiums for coverage I don’t need. 9% Kotlikoff, an economics professor at Boston
22%
across the country during business trips; he 14% University and co-author of “Get What’s
built a pizza oven in his backyard. I know this hurts, but go ahead and enroll 5% 4% Yours: The Revised Secrets to Maxing Out
All of which culminated in Paulie Gee’s, in Part D. Your Social Security.” The agency “doesn’t
2007 2017
the restaurant Mr. Giannone opened in 2010 in You might not be taking any prescription know to whom you are married, whom you’ve
Brooklyn’s Greenpoint neighborhood. Today, he drugs today, but that could change as you *Projected. Figures might not total 100% due to rounding. divorced, whom you will divorce, whether
has franchises in Chicago, Baltimore, Miami age. And if you delay enrolling in Part D, Medi- Source: Kaiser Family Foundation your spouse or ex-spouse(s) dies, whether
and Columbus, Ohio. care will penalize you in the form of larger THE WALL STREET JOURNAL. you have young or disabled children, [or]
“My job is like having friends over, making monthly Part D premiums when you finally do whether you are taking care of dependent
pizza and hanging out,” he told us. “I can’t be- enroll. You can find a good explanation of how least some prescription drugs in the future. parents,” he says.
lieve I get paid to do this.” this works on the Medicare website. Go to Thus, the warning: Be proactive in telling
i i i
medicare.gov and search for: Part D late en- the SSA about major changes in your life. In
Mr. Ruffenach is a former reporter and editor for rollment penalty. I have a friend who is 73 years old and particular, “if your marital situation changes,
The Wall Street Journal. His column examines The best advice: Look for the Part D plan in didn’t claim her earned retirement benefits. or a former or current spouse dies and this
financial issues for those thinking about, planning your area with the lowest premium. And rec- Is she eligible to collect the unclaimed bene- can affect your current benefits, you must tell
and living their retirement. Send questions and ognize that you’re doing a good thing: prepar- fits? She has been receiving widow’s benefits the agency,” Mr. Kotlikoff says. “Don’t expect
comments to askencore@wsj.com. ing now for the strong possibility of taking at since age 60. your benefits to change” unless you do so.
The Fidelity® Total Bond Fund has delivered income and diversification for years
through up and down markets. Which is one of the reasons Morningstar named our
team 2016 U.S. Fixed-Income Fund Manager of the Year and included the Fidelity
Total Bond Fund on their most recent Great 38 List.2 As part of one of the largest fixed
income teams in the industry, Fund Managers Ford O’Neil, Matt Conti, Jeff Moore,
and Mike Foggin have successfully met their investors’ needs by being flexible while
carefully balancing risk with potential reward.
Gross
Fidelity® Total Bond Fund 1.58% 3.45% 2.85% 5.03% 5.02% Expense Ratio
0.45%
Bloomberg Barclays U.S. Aggregate Bond 0.0 7% 2.71% 2.06% 4.27% 4.33%
Intermediate-Term Bond Category Average 0.83% 2.51% 2.12% 4.26% 4.06%
Performance data shown represents past performance and is no guarantee of future results.
Investment return and principal value will fluctuate, so investors may have a gain or loss when
shares are sold. Current performance may be higher or lower than what is quoted, and
investors should visit Fidelity.com/performance for most recent month-end performance.
Before investing in any mutual fund or exchange-traded fund, you should consider its investment objectives, risks,
charges, and expenses. Contact Fidelity for a prospectus, offering circular, or, if available, a summary prospectus
containing this information. Read it carefully.
Past performance is no guarantee of future results.
It is not possible to invest directly in an index. All market indices are unmanaged.
Total returns are historical and include change in share value and reinvestment of dividends and capital gains, if any. Life-of-fund figures are reported as of the commencement date to the period indicated.
As of 09/30/17, Fidelity Total Bond Fund outperformed the Bloomberg Barclays U.S. Aggregate Bond Index and the Morningstar Intermediate-Term Bond category average over the 1-year, 3-year, 5-year, 10-year, and life-of-fund periods.
In general, the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities
also carry inflation risk, liquidity risk, call risk, and credit and default risks for both issuers and counterparties. Lower-quality fixed income securities involve greater risk of default or price changes due to potential changes in the credit quality of
the issuer. Unlike individual bonds, most bond funds do not have a maturity date, so holding them until maturity to avoid losses caused by price volatility is not possible. Foreign securities are subject to interest rate, currency exchange rate,
economic, and political risks, all of which are magnified in emerging markets.
The fund can invest in securities that may have a leveraging effect (such as derivatives and forward-settling securities) that may increase market exposure, magnify investment risks, and cause losses to be realized more quickly.
Gross expense ratio is the total annual fund or class operating expense ratio from the most recent prospectus (before waivers or reimbursements) and generally is based on amounts incurred during the most recent fiscal year.
Expense ratio is the total annual fund operating expense ratio from the fund’s most recent prospectus.
Morningstar Awards © 2017 Morningstar, Inc. All rights reserved. Awarded to Ford O’Neil and Team, FTBFX, for Fixed-Income Fund Manager of the Year (2016), U.S.
1
Morningstar’s award recognizes Ford O’Neil, Matthew Conti, Jeffrey Moore, and Michael Foggin for Fidelity Total Bond Fund (FTBFX). Established in 1988, the Morningstar Fund Manager of the Year award recognizes portfolio managers who
demonstrate excellent investment skill and the courage to differ from the consensus to benefit investors. To qualify for the award, managers’ funds must have not only posted impressive returns for the year, but the managers also must have
a record of delivering outstanding long-term risk-adjusted performance and of aligning their interests with shareholders’. Nominated funds must be Morningstar Medalists—a fund that has garnered a Morningstar Analyst Rating™ of Gold,
Silver, or Bronze. The Fund Manager of the Year award winners are chosen based on research and in-depth qualitative evaluation by Morningstar’s Manager Research Group. Research Group consists of various wholly owned subsidiaries
of Morningstar, Inc. including, but not limited to, Morningstar Research Services LLC. Analyst Ratings are subjective in nature and should not be used as the sole basis for investment decisions. Analyst Ratings are based on Morningstar’s
Manager Research Group’s current expectations about future events and therefore involve unknown risks and uncertainties that may cause such expectations not to occur or to differ significantly from what was expected. Analyst Ratings are
not guarantees nor should they be viewed as an assessment of a fund’s or the fund’s underlying securities’ creditworthiness. The Morningstar Analyst Rating is a subjective, forward-looking evaluation that considers a combination of qualitative
and quantitative factors to rate funds on five key pillars: process, performance, people, parent, and price. Gold is the highest of four Analyst Rating categories. For the full rating methodology, go to Corporate.Morningstar.com/us/documents/
MethodologyDocuments/AnalystRatingforFundsMethodology.pdf.
2
Out of a universe of more than 8,000 funds, only 38 funds passed all the screens (cheapest quintile of category, portfolio managers with at least $1 million invested, risk below “High” level, analyst rating of “Bronze” or higher, parent rating of
“Positive,” and life-of-manager returns above benchmark). Morningstar FundInvestor June 2017 Issue.
© 2017 Morningstar, Inc. All rights reserved. The Morningstar information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or redistributed; and (3) is not warranted to be accurate, complete,
or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Fidelity does not review the Morningstar data and, for mutual fund performance, you should check the
fund’s current prospectus for the most up-to-date information concerning applicable loads, fees, and expenses.
Fidelity Brokerage Services LLC, Member NYSE, SIPC. © 2017 FMR LLC. All rights reserved. 789739.6.0
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
R4 | Monday, November 6, 2017 THE WALL STREET JOURNAL.
Science and Technology Funds Health/Biotechnology Funds International Equity Income Funds
Assets Totalreturn(%) Assets Totalreturn(%) Assets Totalreturn(%)
Symbol ($ millions) October YTD 1-yr 5-yr* 10-yr* Symbol ($ millions) October YTD 1-yr 5-yr* 10-yr* Symbol ($ millions) October YTD 1-yr 5-yr* 10-yr*
Direxion:CSI Ch Int Bl2X CWEB 85.1 –2.0 150.0 N.A. N.A. N.A. ETFis Virtus LS Bio Clin BBC 30.5 –4.7 50.5 53.7 N.A. N.A. AMG Mg VP Asia Div;I AAVPX 10.0 3.9 33.0 29.8 N.A. N.A.
ARK Innovation ARKK 160.6 3.6 76.7 77.9 N.A. N.A. PowerShares DWA Health PTH 182.6 2.4 44.1 54.7 16.4 9.0 Guinn Atkin:Asia-Pc Dv B GAADX 6.6 3.7 31.5 26.5 9.1 3.2
ARK Web x.0 ARKW 97.4 6.3 72.1 74.3 N.A. N.A. SPDR S&P Biotech XBI 4,139.4 –3.3 41.6 49.7 25.2 15.8 BlackRock:EM Div;Inst BICHX 13.7 1.9 31.2 25.1 5.8 N.A.
EMQQ EM Intrt & Ecom ETF EMQQ 304.1 2.0 60.9 43.7 N.A. N.A. Alger:Health Sci;A AHSAX 157.9 1.4 36.6 57.2 17.8 10.4 Matthews Asia:Div;Inv MAPIX 6,370.7 4.3 29.1 22.0 10.0 8.4
Glbl X Rob & Art Intel BOTZ 619.6 7.9 56.6 56.4 N.A. N.A. Eventide Hlthcare & LS;I ETIHX 423.8 –2.3 36.0 40.8 N.A. N.A. WisdomTree:Eur SC Div DFE 1,112.4 –0.1 28.9 33.6 16.8 4.4
ETFMG Video Game Tech GAMR 37.7 3.0 52.5 46.5 N.A. N.A. Frst Tr:NYSEArcaBiotech FBT 1,153.3 –2.4 33.1 39.2 23.8 16.73 WisdomTree:Intl Qual DG IQDG 14.9 1.3 28.1 27.1 N.A. N.A.
Fidelity Sel Technlgy FSPTX 6,127.6 7.0 50.8 49.5 22.1 11.4 ALPS Medical Break SBIO 131.1 –2.9 32.0 38.7 N.A. N.A. WisdomTree:Eu Qual DivGr EUDG 38.3 0.8 28.1 29.6 N.A. N.A.
Firsthand Tech Opptys TEFQX 101.4 6.4 50.5 47.5 19.5 11.3 Principal Hlthcr Innv Id BTEC 7.7 –2.2 30.5 33.6 N.A. N.A. WisdomTree:EM SmCp Div DGS 1,287.8 1.0 28.0 23.9 4.9 3.0
Fidelity Adv Tech;A FADTX 1,642.3 6.8 50.2 48.8 21.6 11.1 iShares:US Med Dev ETF IHI 1,369.1 3.3 30.0 28.5 21.9 11.5 WisdomTree:Intl SC Div DLS 1,679.3 1.4 26.3 28.4 13.0 4.0
PowerShares Dyn Smcnd PSI 306.3 9.4 50.0 69.2 33.0 12.1 Delaware Healthcare;A DLHAX 414.6 –0.8 29.3 32.2 20.8 17.0 WisdomTree:Jpn SC Div DFJ 605.9 3.3 25.4 24.9 15.1 6.5
Category Average: 560.7 5.2 35.5 37.4 19.8 9.33 Category Average: 772.2 –2.1 22.2 26.4 17.9 11.89 Category Average: 265.0 0.7 18.9 18.4 5.4 0.33
Fund Count 141.0 178 172 169 138 123 Fund Count 79.0 100 100 100 74 63 Fund Count 118.0 118 118 118 67 29
MICHAEL MORGENSTERN
a fund is owned in an individ- and how to manage them: For each fund it tracks,
ual retirement account or Morningstar also calculates a
other tax-deferred account,
the investor must pay tax on
the gain—even if the investor
1. Check dates and rates
Before making a major
new fund purchase, it might
tax cost ratio, which mea-
sures how much a fund’s an-
nualized return is reduced by
hasn’t sold any shares of the make sense to wait until after the taxes investors pay on
fund during the year. the fund makes a distribution distributions. The higher the
to avoid having to pay tax on number, the less tax-efficient
It can pay to pick past gains. Investors can learn Payout Scoreboard a fund is.
when distributions are sched- A sampling of capital-gains payout estimates from mutual-fund companies
funds that are less
likely to rack up
uled and how large they will
be by calling a fund firm or
checking its website, notes
FUND FIRM FUND TICKER ESTIMATED PCT. NAV* 4. Don’t flee a fund just
for tax reasons
It’s easy to avoid a distribu-
big capital gains. Dave Haviland, managing American Funds New Economy ANEFX 8-10% tion by selling ahead of it. But
partner at Beaumont Capital depending on the investor,
AMG Funds AMG Frontier Small Cap Growth MSSVX nearly 22%
Management, in Needham, that might not make sense,
Many fund firms already Mass. Columbia Threadneedle Columbia Acorn LACAX about 17-21% professionals say.
have released estimates of the Don’t assume that a fund Unless people have some
2017 distributions they expect won’t pay out a major gain be- Columbia Acorn USA LAUAX about 22-27% experience in trading and un-
to make in December. Some cause it hasn’t in the past, Mr. Franklin Templeton Franklin Small Cap Value FRVLX 7-13% derstand IRS rules about
payouts will be sizable. Haviland adds. Events such as booking losses, it might be
The stock rally has boosted a changeover in managers can Templeton China World TCWAX 7-12% better for them to sit back and
many funds’ portfolios while cause a fund that has been rel- not trade near distribution
J.P. Morgan JPMorgan Large Cap Growth OLGAX nearly 14%
offering few opportunities to atively tax-efficient to dates, advisers say. Moreover,
book offsetting tax losses, says abruptly make a big payout. US Large Cap Core Plus JLCAX about 12% an investor who bought a fund
Christine Benz, director of “A new manager may sig- at a significantly lower share
personal finance for Morning- nificantly rework the portfolio T. Rowe Price Growth Stock PRGFX about 11% price and sells now, after it
star Inc. Meantime, as inves- and may be selling stocks that has appreciated, could face a
tors in actively managed funds have several years’ worth of *Most estimates are based on September or October data. Actual payouts could be significantly different. hefty tax bill on that transac-
increasingly shift to exchange- unrealized gains,” Mr. Havi- Source: Morningstar, fund-firm websites THE WALL STREET JOURNAL. tion.
traded funds, that has forced land says. “For most individual inves-
fund managers to sell appreci-
ated securities to raise cash
for redemptions.
This year, large-cap growth
funds have piled up hefty capi-
tal gains while investors in
2. Understand how
distributions work
Distributions are deducted
the distribution remains the
same.
Moreover, there can be a
reinvested a $5,000 distribu-
tion (while paying any taxes
owed from another source),
tors, the beauty of markets is
to let compounding over a
long period work for them,”
From a tax standpoint, it’s many of those funds have been from net asset value. So when tax benefit for reinvesting a the basis would rise to says Douglas Cohen, a New
“a bad confluence of events,” shifting to ETFs. That has they happen, a fund’s NAV gain. Because an investor now $105,000, notes Daniel Got- York-based managing director
Ms. Benz says. forced many managers to sell drops to reflect the amount has paid tax on the distribu- tfried, partner and tax attor- for Athena Capital Advisors. In
There are ways to dodge positions and book gains to distributed. Regardless of tion, it isn’t taxed further, so ney in Hinckley Allen’s Hart- trading as a tax-avoidance
the tax collector. An investor keep cash on hand to meet re- whether the distribution is using it to buy more shares at ford office. strategy, “there’s a risk of be-
could contact a fund firm to demptions. paid in cash or reinvested in a now-higher price would in- ing too cute.”
learn when distributions will
be made and then sell pre-
emptively—or keep the fund
Some growth funds already
have estimated 2017 gains dis-
tributions as large as 10% of
more shares of the fund,
though, the total value of the
investor’s holding of shares
crease the tax-cost basis for
the holding.
For someone who originally
3. Study a fund’s style
before buying
Understanding a fund’s strat-
Mr. Pollock is a writer in
Ridgewood, N.J. He can be
while taking offsetting losses net asset value. plus any cash received from paid $100,000 for a fund and egy may help an investor reached at reports@wsj.com.
For the 3- and 5-year periods, the Fund was rated For the 3-, 5-, and 10-year periods, the Fund was For the 3-year period, the Fund was rated 5 stars out
5 stars out of 703 funds and 5 stars out of 583 rated 4 stars out of 1,259 funds, 4 stars out of 1,125 of 198 funds.
funds, respectively. funds, and 5 stars out of 800 funds, respectively.
Consider a fund’s investment objectives, risks, charges, and expenses carefully before investing. The prospectus and summary prospectus contain this and other information about
the fund. Contact your financial professional for a prospectus or summary prospectus. Read them carefully before investing.
Mutual fund investing involves risks. Some funds are riskier than others. The risks associated with investing in these funds include but are not limited to: high yield (“junk”) bonds, which are subject to greater market
risks (PIFZX, PDBZX, PHYZX); foreign securities, which are subject to currency fluctuation and political uncertainty (PRJZX, PJFZX); and short sales, which may prevent from implementing its investment strategy to
the extent the Fund is obligated to cover a short position at a higher price (PLHZX, PJFZX). Fixed income investments are subject to interest rate risk, and their value will decline as interest rates rise (PIFZX, PDBZX,
PHYZX). The risks associated with each fund are explained more fully in each fund’s respective prospectus. There is no guarantee a fund’s objectives will be achieved.
Some Morningstar Ratings may not be customarily based on adjusted historical returns. If so, an investment’s independent Morningstar Rating metric is compared against the retail mutual fund universe breakpoints to
determine its hypothetical rating for certain time periods. The Morningstar Rating for funds, or “star rating,” is calculated for managed products (including mutual funds, variable annuity and variable life subaccounts,
exchange-traded funds, closed end funds, and separate accounts) with at least a three-year history. Exchange-traded funds and open-ended mutual funds are considered a single population for comparative purposes.
It is calculated based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a managed product’s monthly excess performance, placing more emphasis on downward variations and rewarding
consistent performance. The top 10% of products in each product category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars, and the bottom 10% receive
1 star. The Overall Morningstar Rating for a managed product is derived from a weighted average of the performance figures associated with its three-, five-, and 10-year (if applicable) Morningstar Rating metrics. The
weights are: 100% three-year rating for 36-59 months of total returns, 60% five-year rating/40% three-year rating for 60-119 months of total returns, and 50% 10-year rating/30% five-year rating/20% three-year
rating for 120 or more months of total returns. While the 10-year overall star rating formula seems to give the most weight to the 10-year period, the most recent three-year period actually has the greatest impact
because it is included in all three rating periods.
Star ratings shown are for Class Z shares, which are available to individual investors through certain retirement and wrap fee programs, and to institutions at an investment minimum of $5,000,000.
Mutual funds are distributed by Prudential Investment Management Services LLC, a Prudential Financial registered investment advisor and Prudential Financial company. Jennison Associates and PGIM, Inc. (PGIM)
are registered investment advisors and Prudential Financial companies. QMA is the primary business name of Quantitative Management Associates LLC, a wholly owned subsidiary of PGIM. PGIM Fixed Income and
PGIM Real Estate are units of PGIM. © 2017 Prudential Financial, Inc. and its related entities. Jennison Associates, Jennison, PGIM Real Estate, PGIM and the PGIM logo are service marks of Prudential Financial,
Inc. and its related entities, registered in many jurisdictions worldwide. The investment return and principal value will fluctuate and shares when sold may be worth more or less than the original cost and it is possible
to lose money. This material is being provided for informational or educational purposes only and does not take into account the investment objectives or financial situation of any client or prospective clients. The
information is not intended as investment advice and is not a recommendation about managing or investing your retirement savings. Clients seeking information regarding their particular investment needs should contact
a financial professional. 0306639-00004-00
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
THE WALL STREET JOURNAL. Monday, November 6, 2017 | R7
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
R8 | Monday, November 6, 2017 THE WALL STREET JOURNAL.
JASON CLARKE
brands include Jameson and 2012, according to Morningstar Inc.
Beefeater. data. ETFs now account for 7.9% of
The $6.2 million fund has re- the total European funds market, The Central Bank of Ireland is hosting an international conference on ETFs.
turned 28.4% through October. Morningstar says.
Sam Masucci, founder and chief In the U.S., regulators have been not believe there to be any evidence Moloney says.
executive officer of ETF Managers working to catch up and respond to to date that the increased volumes Regulators in other parts of the Global regulators need
Group, which operates the ETF on market disruptions involving ETFs, have led to any strain in the ETF ar- world also are examining ETFs, and
behalf of Spirited Funds, the cre- relatively new investments governed chitecture. ETFs remain a small per- it appears they may increasingly to develop ‘a common
ator of the index, says the under- by Depression-era laws. Similarly, centage of the overall funds market work together on this issue. language of risk.’
lying companies in the fund have ETFs in Europe are regulated under and stock-market activity.” In July, for example, the body that
risen partly because of the two different regimes, neither of Still, the responses did highlight a sets global standards for regula- IRELAND’S MARTIN MOLONEY
strengthening global economy. which was designed for the ETF number of areas where participants tors—the International Organization
“People have more discretion- structure. They are Undertakings for think regulatory change may be con- of Securities Commissions—pub-
ary money to spend in the dis- Collective Investment in Transfer- sidered. A big one involves a type of lished a consultation document on li- comes to ETFs,” he says.
tilled space,” he says. able Securities, which regulates most ETF that has also caused debate in quidity-risk management, with a sec- Regulators could then develop
WSKY has benefited from retail funds, and the Markets in Fi- the U.S.—so-called active ETFs, tion on ETFs. The Central Bank of high-level principles or perspectives
bullish stock markets overall, says nancial Instruments Directive, which which are a hybrid of passive and Ireland, meanwhile, is holding an in- on ETF regulation, Mr. Moloney
Kiril Nikolaev, an analyst at governs the trade of a host of finan- active investing. While traditional ternational conference on ETFs in says; this could potentially inform
ETFdb.com. The fund’s exposure cial instruments. ETFs passively track certain indexes, Dublin at the end of November. Paul work at a global level through the
“is mainly in developed markets The Central Bank of Ireland has active ETFs have fund managers who Andrews, the secretary-general of International Organization of Securi-
such as Europe and the U.S., been consulting with ETF providers make decisions about the allocation the International Organization of Se- ties Commissions, with regional and
which have enjoyed overall great and other stakeholders for the past of the underlying portfolio. curity Commissions, will be a key- national regulators interpreting and
returns year-to-date.” However, year or so, says Martin Moloney, The responses suggest a potential note speaker, as will a senior official implementing any principles that
its performance also reflects special adviser on policy and risk is- push for change in this area, Mr. from the U.S. Securities and Ex- emerge in their own jurisdictions.
growing demand for spirits, with sues at the central bank. That effort Moloney says. Specifically, how change Commission. Even if this doesn’t prove neces-
most of its underlying holdings led to the publication of a “discus- transparent should they be? Conven- Mr. Moloney says the Central sary, developing a common under-
enjoying returns of more than sion paper” in May that asked a tional ETFs must disclose their hold- Bank of Ireland hopes international standing of risk would be useful in
20% year-to-date. range of questions on issues ranging ings often, allowing market partici- regulators can develop a “common and of itself, he says. “I anticipate
At Spirited Funds, CEO David from market liquidity to collateral. pants a clear view of the assets in language of risk,” establishing ex- that 2018 will be very much focused
Bolton says spirits are in a 30- to The bank published a number of re- which they are invested. Some ac- actly where the risks are in the ETF on that agenda.”
40-year “supercycle.” Consumers sponses to the report on its website tive-ETF managers may prefer less- sector and the impact they could
“are spending more on the prod- in mid-September. stringent rules, however, because have on the broader market. While Mr. Cowan is a writer in
ucts, and the industry is investing The Ireland-based unit of U.S. they want to keep their investment regulators in different jurisdictions Northern Ireland. He can be
hundreds of millions of dollars to fund giant Vanguard Group, in its strategy under wraps. have a shared language for discuss- reached at reports@wsj.com.
increase storage and production.” response to the paper, said that al- “That’s one area where I think ing the risks associated with banking
—Gerrard Cowan though ETFs had become a sought- you might see some increasing push in areas like credit risk, “we’re not Latest exchange-traded funds
after option for investors, “we do from industry in the future,” Mr. quite in the same place when it performance table............................... R14
columbiathreadneedle.com
Performance data shown represents past performance and is not a guarantee of future results. The investment return and principal value of an investment will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data shown.
Please visit columbiathreadneedle.com/us for performance data current to the most recent month end. Class Inst shares are sold at net asset value and have limited eligibility. Columbia Management Investment Distributors, Inc. offers multiple share classes, not all necessarily available through all firms, and the share class ratings may vary. Contact us for details.
On November 1, 2017, Class Z shares were renamed Institutional shares. Investors should consider the investment objectives, risks, charges and expenses of a mutual fund carefully before investing. For a free prospectus or a
summary prospectus, which contains this and other important information about the funds, visit columbiathreadneedle.com/us. Read the prospectus carefully before investing.
Investments involve risk, including the risk of loss of principal. Market risk may affect a single issuer, sector of the economy, industry or the market as a whole. Fixed-income securities present issuer default risk. Non-investment-grade (high-yield or junk) securities present greater price volatility and more risk to principal and income than higher rated securities. A
rise in interest rates may result in a price decline of fixed-income instruments held by the fund, negatively impacting its performance and NAV. Other risk may include foreign and emerging markets issuer and country specific risk, prepayment & extension risk, derivative and liquidity risks. ©2017 Morningstar, Inc. All rights reserved. The Morningstar information contained
herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. For each fund with at least a three-year history, Morningstar
calculates a Morningstar Rating TM used to rank the fund against other funds in the same category. It is calculated based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a fund’s monthly excess performance, without any adjustments for loads (front-
end, deferred or redemption fees), placing more emphasis on downward variations and rewarding consistent performance. Exchange-traded funds and open-ended mutual funds are considered a single population for comparative purposes. The top 10% of funds in each category receive 5 stars, the next 22.5% receive 4 stars, the next
35% receive 3 stars, the next 22.5% receive 2 stars and the bottom 10% receive 1 star. (Each share class is counted as a fraction of one fund within this scale and rated separately, which may cause slight variations in the distribution percentages.) The Morningstar ratings for the overall-, three-, five- and ten-year periods for the A-share are 5 stars,
4 stars, 5 stars, and 5 stars and for the Inst-share are 5 stars, 4 stars, 5 stars, and 5 stars among 259, 259, 159 and 44 Nontraditional Bond funds, respectively, and are based on a Morningstar Risk-Adjusted Return measure. The Overall Morningstar Rating for a fund is derived from a weighted average of
the performance figures associated with its three-, five- and ten-year (if applicable) Morningstar Rating metrics. Columbia Management Investment Distributors, Inc., member FINRA. Columbia Threadneedle Investments is the global brand name of the Columbia and Threadneedle group of companies. Not FDIC insured/No bank guarantee/May lose value. 1927110
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R10 | Monday, November 6, 2017 THE WALL STREET JOURNAL.
W E D N E S D AY, D E C E M B E R 1 3 , N E W Y O R K C I T Y
Join WSJ Pro journalists and cybersecurity experts for an exclusive event on cyber risks. Tailored to
the needs of senior managers, the Cybersecurity Executive Forum will help you navigate the ever-
evolving cybersecurity landscape, from protecting data and staying compliant with major laws to
defending your business and how to respond should a crisis emerge.
SPEAKERS INCLUDE
AUTONOMY,
openly discuss their spending do it. “I think you’d be a fool
habits, assets, liabilities and not to,” he says. “You just
financial goals, says Laurie don’t want to have any big fi-
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The Talk
Time in a relationship when couples first discuss money
Ages
18-34 35-54 55+
“HIGHEST IN EMPLOYEE ADVISOR SATISFACTION
AMONG FINANCIAL INVESTMENT FIRMS”
35% Edward Jones received the highest numerical score in the Employee
42%
47% Within the first Advisor Segment in the J.D. Power 2017 Financial Advisor Satisfaction
three months Study, based on 1,761 total responses from 10 companies in the
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25%
15% 11% 4-6 months
Performance numbers are total returns (changes in net asset values with reinvested distributions) as of October 31; assets are as of September 29. All data is preliminary.
Best-Performing Stock Funds Worst-Performing Stock Funds
Total Return (%) Total Return (%)
Assets Annualized Assets Annualized
Fund Ticker ($ millions) October YTD 1-year 3-year 5-year Fund Ticker ($ millions) October YTD 1-year 3-year 5-year
Direxion:Hbldrs&Sup Bl3X NAIL 14.0 28.1 183.5 237.5 N.A. N.A. ProShs II:UltVIX STF ETF UVXY 520.7 –26.0 –91.2 –95.4 –89.4 –88.2
Direxion:Semicnd Bull 3X SOXL 386.2 28.4 159.3 238.3 77.7 92.0 VelShs Dly 2x VIX ST ETN TVIX 302.7 –26.0 –91.2 –95.4 –89.4 –88.2
Direxion:S Korea Bull 3X KORU 9.6 25.8 152.3 126.7 15.7 N.A. VelShs 3x Long Nat Gas UGAZ 680.4 –26.6 –81.5 –74.8 –82.3 –71.5
Rex VolMAXX SVW Ftrs Str VMIN 16.9 13.3 150.8 237.4 N.A. N.A. iPath Bloomberg NatGas A GAZ 2.5 –38.8 –77.9 –67.3 –59.8 –44.6
Direxion:CSI Ch Int Bl2X CWEB 85.1 –2.0 150.0 N.A. N.A. N.A. Rex VolMAXX LVW Ftrs Str VMAX 2.4 –14.0 –77.4 –84.8 N.A. N.A.
Direxion:S&P Btech Bl 3X LABU 325.0 –10.3 144.4 165.3 N.A. N.A. Direxion:S&P Btech Br 3X LABD 110.7 9.6 –73.4 –81.7 N.A. N.A.
VelShs DlyInv VIX ST ETN XIV 1056.4 14.8 137.9 204.2 47.4 47.8 VelShs Dly 2x VIX MT ETN TVIZ 2.0 –16.4 –71.2 –74.8 –53.6 –57.4
ProShs II:ShVIX STF ETF SVXY 1,147.6 14.6 135.5 199.9 46.4 46.9 Direxion:Semicnd Bear 3X SOXS 42.4 –23.0 –69.9 –78.8 –63.9 –65.2
UBS E-TRACS MR2xL ISE Hb HOML 3.2 25.4 119.7 156.4 N.A. N.A. ProShs II:VIX ST Fut ETF VIXY 191.4 –13.6 –66.8 –75.4 –58.9 –57.4
Direxion:MSCI EM Bull 3X EDC 246.7 9.5 119.3 85.1 1.5 0.1 iPath ETN SP500 VIX ST A VXX 1,028.1 –13.6 –66.7 –75.3 –58.9 –57.4
Direxion:China Bull 3X YINN 209.5 12.2 117.9 89.3 1.1 14.8 VelShs VIX ShTm ETN VIIX 13.8 –13.6 –66.7 –75.3 –58.9 –57.4
Direxion:Tech Bull 3X TECL 363.2 20.0 115.8 127.4 48.7 54.9 ProShs II:Ult Blm Nat Gs BOIL 51.1 –17.1 –61.6 –49.5 –60.9 –49.0
Direxion:MSCI Ind Bull3X INDL 101.2 22.6 112.2 65.2 –2.1 5.3 Direxion:China Bear 3X YANG 44.3 –13.4 –61.3 –57.7 –43.4 –47.0
ProShares:UltP QQQ TQQQ 2,094.7 13.5 105.0 112.0 41.2 59.0 Direxion:MSCI EM Bear 3X EDZ 100.4 –9.6 –60.0 –55.9 –32.4 –29.7
VelShs 3x Inv Nat Gas DGAZ 82.3 29.2 104.7 4.3 12.1 –16.5 Direxion:Tech Bear 3X TECS 19.8 –17.5 –58.2 –61.8 –47.1 –48.2
ProFunds:UltraChina;Inv UGPIX 36.3 2.4 98.0 70.9 9.5 20.2 ProShares:UltP Sht QQQ SQQQ 603.0 –12.8 –55.4 –58.1 –43.5 –49.1
VelShs VIX Short Vol Hdg XIVH 60.5 11.5 89.6 126.8 N.A. N.A. ProFunds:UlSh China;Inv UHPIX 2.0 –3.4 –55.0 –49.4 –29.0 –34.4
Direxion:FTSE EU Bull 3X EURL 62.3 0.9 84.8 95.9 4.9 N.A. Direxion:Jr Mnr Bear 3X JDST 172.0 13.9 –54.6 –40.0 –86.5 N.A.
ProShares:Ult Semicond USD 45.7 22.1 83.4 112.3 46.0 55.2 Direxion:S&P OG EP Bl 3X GUSH 142.5 0.5 –51.8 –27.0 N.A. N.A.
ProShares:Ult Tech ROM 234.5 15.8 79.0 83.8 34.3 38.1 ProShares:UlS Semicond SSG 4.9 –18.7 –50.8 –58.9 –43.3 –46.0
iPath ETN LgEn MSCI EM EMLB 2.4 6.5 76.9 58.0 9.4 7.9 Direxion:Nat Gas Bull 3X GASL 58.2 –2.4 –49.0 –36.5 –84.8 –71.7
ARK Innovation ARKK 160.6 3.6 76.7 77.9 21.1 N.A. ProShares:UPS Nasdaq Bio ZBIO 5.2 18.8 –48.6 –58.3 N.A. N.A.
Direxion:MSCI DM Bull 3X DZK 30.3 4.7 75.6 78.3 6.7 16.6 Nvgtr Sentry Mgd Vol;I NVXIX 12.5 –6.6 –48.6 –56.6 –38.0 N.A.
ProFunds:UltraEM;Inv UUPIX 44.5 3.7 75.1 45.6 3.4 2.9 ProFunds:UltSh EM;Inv UVPIX 2.2 –4.3 –47.7 –39.0 –20.1 –18.6
Rydex:Emg Mk 2x Str;H RYWVX 19.9 3.8 74.7 45.6 2.8 2.4 ProShares:UlS Tech REW 3.0 –14.2 –47.3 –49.6 –34.3 –35.6
VelShs DlyInv VIX MT ETN ZIV 174.2 9.0 74.7 83.4 23.2 30.8 Rydex:Inv EM 2x Str;H RYWYX 0.7 –4.2 –47.1 –38.3 –19.9 –18.4
ProShs II:UlS Blm Nat Gs KOLD 5.9 18.0 73.0 13.9 30.8 7.8 ProShares:UlS FTSE Ch 50 FXP 34.2 –8.9 –46.4 –43.0 –28.1 –27.0
ProShares:Ult FTSE Ch 50 XPP 51.9 8.3 72.4 58.2 8.6 9.3 Direxion:MSCI DM Bear 3X DPK 3.9 –4.7 –46.4 –48.3 –26.2 –31.2
ARK Web x.0 ARKW 97.4 6.3 72.1 74.3 29.3 N.A. ProShares:UlS MSCI Brz BZQ 29.6 6.0 –46.2 –37.7 –32.7 –23.0
ProShares:Ult MSCI EM EET 39.5 6.4 71.0 53.9 5.2 3.9 ProShs II:VIX MT Fut ETF VIXM 43.2 –8.4 –45.2 –48.5 –28.3 –31.8
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R14 | Monday, November 6, 2017 THE WALL STREET JOURNAL.
BOB STAAKE
For Mr. Braun, the founder name a contingent caregiver, CARE PLAN
of PetInsuranceQuotes.com, a he says. “Things change, and By writing down clear,
marketplace for pet health in- you always have to have a detailed instructions on
surance, it was a multistep backup plan to minimize the how to care for the pet,
process to make sure his par- risk that your wishes aren’t owners make it easier for fu- sistance from a lawyer.
ents—Gus’s designated care- going to be met,” he says. ture caregivers to abide by Others provide for pets in Pet Ownership in the U.S.
givers—have the financial sup- their wishes. Mr. Braun and their wills. An owner who goes More than two-thirds of U.S. households own a pet. By species, as a
port and practical guidance
they need to assume care of
the yellow Labrador retriever.
2. SET ASIDE MONEY
Pet owners should make
a list of all of their pet-care
his wife made a list that in-
cludes the food Gus eats; how
often a day he is fed; the name
this route should make sure
someone can step in immedi-
ately to care for the pet, since
percentage of all U.S. households:
Dog | 48%
“You can’t just say, ‘Hey, costs, taking into account the and contact information for executing a will takes time. Cat | 38%
Dad, can you take the dog if pet’s expected lifespan. Donna the doggy day care he attends A third option is to draft a
Freshwater fish | 10%
something happens?’ ” says Childs, of Warwick, R.I., added three days a week; where he’s pet-protection agreement, a
Mr. Braun, of Columbus, Ohio. up the annual expenses for boarded when the family goes legally enforceable contract No pet Own a pet Bird | 6%
While that’s exactly what veterinary care for her two away; and the information for between at least two people or 32% 68% Small animal | 5%
most pet owners do (if they do cocker spaniels, Coco and his pet-insurance policy and entities—often the pet owner Reptile | 4%
anything at all), others say Henry, as well as their medica- his veterinarian. (The value of and the chosen guardian. This Horse | 2%
that creating a formal estate tions, monthly grooming, food, pet insurance is hotly debated, is a simpler, more-affordable Saltwater fish | 2%
plan for pets can help ensure toys and a contingency for un- so owners should do their alternative to a pet trust, ex-
they receive a continuing and anticipated expenses. homework before buying it.) perts say, because it doesn’t Source: American Pet Products Association's 2017 National Pet Owners Survey
high level of care should you She multiplied the annual require an attorney to draft.
die before they do. It also
could keep them out of a shel-
ter, which is where many pets
total by what she believed to
be the average life expectancy
for the dogs, arriving at a bud-
4. FORMALIZE
AGREEMENTS
Once the basic decisions about
Formalizing and funding a
plan are important to ensure
your wishes are upheld, says
A Dog's (and Cat's) Life
Life-expectancy guidelines, according to Dr. Erin Wilson, medical
end up after their owners die. get of $25,000 for lifetime care. a pet’s care have been made, Everett Sussman, a lawyer in director of the ASPCA Adoption Center
Before setting anything to The next step is determin- owners should formalize Cheshire, Conn., who has as-
paper, here are a few things to ing how those funds should be things to help ensure that sisted numerous clients with CATS
consider: set aside. Options include a their wishes are carried out. estate planning for their pets. 14-18 years | In general, cats can live this long, provided that they
trust, a bank account con- Some people create a pet “The idea is to protect the receive regular veterinary care and are kept indoors.
1. NAME A CAREGIVER
Steve Wittenberg, direc-
tor of legacy planning at SEI
trolled by an executor (or by
the guardian) or life insurance.
While the beneficiary of a life-
trust for their animals. These
legal arrangements, now avail-
able in all 50 states, set out
ones you love, whether they
are family, furry or feathered.” DOGS
12-15 years | On average, dogs live this long, although this can
Private Wealth Management in insurance policy can’t be a very specific directions for the Ms. Winokur Munk is a vary with size and breed. Generally, the larger the dog, the shorter
Oaks, Pa., says that when cli- pet, it can be a trust that in- care and funding of a pet after writer in West Orange, N.J. the life expectancy.
ents think about choosing a cludes provisions for a pet’s its owner dies. Setting up a She can be reached at
caregiver for pets, they should care or a trust specifically cre- pet trust typically requires as- reports@wsj.com. Source: ASPCA THE WALL STREET JOURNAL.
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Assets Volume Expense Launch Performance (%) Assets Volume Expense Launch Performance (%)
Fund Symbol ($ billions) (000s) ratio date October YTD 1-year Fund Symbol ($ billions) (000s) ratio date October YTD 1-year
SPDR S&P 500 ETF SPY 252.26 57,565.4 0.09 01/22/93 2.3 16.8 23.5 iShares Core S&P Tot US Stk Mkt ETF ITOT 12.00 554.6 0.03 01/20/04 2.2 16.4 24.0
Fidelity Nasdaq Comp Tracker Stock ONEQ 209.10 47.0 0.21 09/25/03 3.6 25.8 30.8 iShares 1-3 Yr Credit Bd ETF CSJ 11.98 300.5 0.20 01/05/07 0.1 1.6 1.2
iShares Core S&P 500 ETF IVV 133.41 3,342.7 0.05 05/15/00 2.3 16.9 23.6 iShares JPMorgan USD Emg Mkts B ETF EMB 11.91 1,250.2 0.40 12/17/07 0.3 9.2 5.7
Vanguard Tot Stk Mkt Idx ETF VTI 86.92 2,378.4 0.04 05/24/01 2.2 16.4 23.9 iShares MBS ETF MBB 11.67 362.8 0.25 03/13/07 –0.1 2.2 0.4
iShares MSCI EAFE ETF EFA 81.80 22,207.4 0.32 08/14/01 1.5 21.8 23.4 Consumer Discretionary Sel Sec SPDR XLY 11.58 3,177.3 0.14 12/16/98 2.1 14.1 19.5
Vanguard 500 Index ETF VOO 77.97 315.2 0.04 09/07/10 2.3 16.9 23.6 iShares 1-3 Yr Treasury Bd ETF SHY 11.38 626.1 0.15 07/22/02 –0.1 0.5 0.1
Vanguard FTSE Developed Markets ETF VEA 65.70 7,382.9 0.07 07/20/07 1.8 23.2 24.4 Vanguard Large Cap ETF VV 10.95 224.6 0.06 01/27/04 2.3 17.1 23.8
Vanguard FTSE Emerging Markets ETF VWO 64.97 9,045.8 0.14 03/04/05 2.5 26.7 21.0 Schwab US Broad Market ETF SCHB 10.78 58.3 0.03 10/30/09 2.2 16.5 23.9
PowerShares QQQ Nasdaq 100 QQQ 57.23 24,937.9 0.20 03/10/99 4.5 29.4 31.4 Schwab US Large-Cap ETF SCHX 10.55 69.7 0.03 10/30/09 2.3 17.0 23.8
iShares Core US Aggregate Bond ETF AGG 51.32 3,151.6 0.06 09/22/03 0.1 3.2 0.9 iShares Russell Mid Cap Value Index Fund IWS 10.54 196.4 0.25 07/17/01 0.8 8.1 16.9
iShares Russell 2000 ETF IWM 43.62 22,055.6 0.20 05/22/00 0.8 11.9 27.8 iShares MSCI EAFE Small Cap ETF SCZ 9.79 717.0 0.40 12/10/07 1.7 27.3 27.2
Nationwide Maximum Dvs US Cre Eqty MXDU 43.04 0.2 N.A. 09/18/17 0.3 N.A. N.A. Alps Alerian MLP ETF AMLP 9.72 2,310.6 0.85 08/25/10 –4.7 –10.5 –6.2
Vanguard Telecom Serv ETF VOX 43.04 589.3 0.10 09/23/04 –2.9 –8.1 1.8 Vanguard Total World Stock ETF VT 9.71 836.1 0.11 06/24/08 2.1 20.0 23.8
iShares Core S&P Mid-Cap ETF IJH 41.71 1,094.1 0.09 05/22/00 2.3 11.8 23.4 Vanguard Total Intl Stock Index ETF VXUS 9.61 474.2 0.11 01/26/11 1.9 24.6 24.4
iShares Core MSCI Emerging Markets IEMG 40.39 6,788.4 0.17 10/18/12 3.5 31.4 25.6 iShares Nasdaq Biotechnology Index Fund IBB 9.58 926.8 0.47 02/05/01 –5.8 18.7 22.8
iShares Core MSCI EAFE IEFA 39.61 5,812.8 0.09 10/18/12 1.6 22.8 24.3 iShares Gold Trust IAU 9.57 6,784.7 0.25 01/21/05 –1.1 9.3 –0.4
iShares iBoxx $ Inv Grade Cor B ETF LQD 39.02 5,912.8 0.15 07/22/02 0.4 6.1 3.5 iShares Russell 2000 Value ETF IWN 9.38 469.9 0.24 07/24/00 0.1 5.7 24.7
iShares Russell 1000 Growth ETF IWF 38.80 1,724.2 0.20 05/22/00 3.9 25.2 29.5 WisdomTree Europe Hedged Equity HEDJ 9.17 381.0 0.58 12/31/09 2.6 17.6 24.9
iShares Russell 1000 Value ETF IWD 37.84 2,505.1 0.20 05/22/00 0.7 8.6 17.6 iShares National Muni Bond MUB 9.05 319.7 0.25 09/07/07 0.1 4.2 1.6
iShares MSCI Emerging Markets Index Fund EEM 37.78 47,557.0 0.72 04/07/03 3.4 31.5 25.6 iShares Russell 2000 Growth ETF IWO 9.03 306.5 0.24 07/24/00 1.6 18.7 31.1
Vanguard Total Bond Market ETF BND 36.35 1,678.9 0.05 04/03/07 0.1 3.3 0.8 WisdomTree Japan Hedged Equity DXJ 8.95 2,750.0 0.48 06/16/06 5.3 17.8 30.8
SPDR Gold Shares GLD 34.73 3,899.4 0.40 11/18/04 –1.0 9.2 –0.5 PowerShares Senior Loan BKLN 8.76 353.8 0.64 03/01/11 0.4 2.2 3.5
Vanguard Value ETF VTV 34.36 1,004.6 0.06 01/26/04 1.8 11.5 21.2 Vanguard Total Internatl Bd Idx ETF BNDX 8.51 566.9 0.12 05/31/13 0.8 2.0 1.2
iShares Core S&P Small-Cap ETF IJR 34.24 2,936.4 0.09 05/22/00 0.9 9.9 27.8 iShares 20+ Yr Treasury Bd ETF TLT 8.20 4,412.5 0.15 07/22/02 –0.1 6.2 –2.6
Vanguard REIT ETF VNQ 33.96 4,422.7 0.12 09/23/04 –1.0 2.5 5.4 iShares Russell Mid Cap Growth Index Fund IWP 8.13 691.6 0.25 07/17/01 2.8 20.3 26.0
Vanguard Growth ETF VUG 30.32 592.5 0.06 01/26/04 2.9 23.8 26.6 iShares Russell 3000 Index Fund IWV 8.11 213.5 0.20 05/22/00 2.2 16.3 23.8
Financial Select Sector SPDR XLF 29.21 39,535.7 0.14 12/16/98 2.9 15.7 36.9 VanEck Vectors Gold Miners ETF GDX 7.97 28,363.0 0.51 05/16/06 –2.2 7.5 –8.2
Vanguard Div Appreciation ETF VIG 25.77 519.8 0.08 04/21/06 2.1 15.4 20.1 iShares MSCI ACWI ETF ACWI 7.95 1,247.4 0.32 03/26/08 2.1 19.9 23.6
iShares TIPS Bond ETF TIP 23.63 1,142.4 0.20 12/04/03 0.2 1.9 –0.2 iShares Core MSCI Total Intl Stock IXUS 7.80 263.2 0.12 10/18/12 1.9 24.0 24.1
Vanguard Short-Term Bd Idx ETF BSV 23.41 1,223.8 0.07 04/03/07 –0.03 1.5 0.5 Vanguard Mid Cap Value Index ETF VOE 7.78 168.9 0.07 08/17/06 0.8 11.1 19.0
Vanguard Short-Term Crp Bd Idx ETF VCSH 21.76 1,272.7 0.07 11/19/09 0.1 2.7 1.8 Consumer Staples Select Sector SPDR XLP 7.74 10,789.7 0.14 12/16/98 –1.7 4.7 3.3
Vanguard FTSE All-World ex-US ETF VEU 21.64 3,243.4 0.11 03/02/07 2.0 23.9 23.7 PIMCO Enhanced Sht Maturity Act ETF MINT 7.69 44.2 0.35 11/16/09 0.2 1.7 1.9
Vanguard Mid Cap ETF VO 20.75 304.3 0.06 01/26/04 1.4 14.2 20.3 iShares Intrm Credit Bond ETF CIU 7.68 652.6 0.20 01/05/07 0.2 3.6 1.9
Vanguard Small Cap ETF VB 20.11 346.5 0.06 01/26/04 1.6 12.3 24.3 iShares Edge MSCI Min Vol EAFE ETF EFAV 7.67 495.1 0.20 10/18/11 1.0 18.6 16.2
Vanguard High Dividend Yield ETF VYM 19.99 555.2 0.08 11/10/06 1.7 11.4 19.5 Utilities Select Sector SPDR XLU 7.61 9,515.4 0.14 12/16/98 3.9 16.1 15.2
SPDR Dow Jones Industrial Average DIA 19.84 1,771.2 0.17 01/14/98 4.4 20.5 31.9 iShares 3-7 Yr Treasury Bd ETF IEI 7.55 1,166.6 0.15 01/05/07 –0.2 1.6 –0.6
iShares S&P 500 Growth Index Fund IVW 19.46 654.9 0.18 05/22/00 3.3 23.0 26.3 iShares 7-10 Yr Treasury Bd ETF IEF 7.47 1,175.5 0.15 07/22/02 –0.2 2.6 –1.8
iShares iBoxx $ Hi Yld Corp Bd ETF HYG 19.38 7,197.3 0.49 04/04/07 0.2 6.3 7.8 Powershares S&P 500 Low Vol Port SPLV 7.13 349.4 0.25 05/05/11 1.9 14.1 17.6
SPDR S&P MidCap 400 ETF MDY 19.30 943.7 0.25 04/28/95 2.2 11.6 23.1 iShares S&P Mid Cap 400 Growth Index Fund IJK 7.07 56.1 0.25 07/24/00 3.4 15.6 25.2
iShares Russell 1000 ETF IWB 19.28 1,208.9 0.15 05/15/00 2.3 16.7 23.5 Vanguard HealthCare Index ETF VHT 7.07 240.1 0.10 01/26/04 –0.8 20.5 24.2
Technology Select Sector SPDR XLK 19.23 10,094.0 0.14 12/16/98 6.5 31.8 34.9 Xtrackers MSCI EAFE Hdg DBEF 7.04 1,136.0 0.35 06/09/11 3.0 15.5 22.2
iShares US Preferred Stock PFF 18.16 2,065.9 0.47 03/26/07 –0.5 7.8 4.7 iShares MSCI Brazil Capped EWZ 6.80 24,421.2 0.63 07/10/00 –3.8 20.0 7.3
Vanguard FTSE Europe ETF VGK 17.88 2,443.6 0.10 03/04/05 0.4 25.0 28.0 Vanguard Small Cap Growth ETF VBK 6.75 80.4 0.07 01/26/04 2.4 18.0 26.5
Vanguard Intm-Term Corp Bd Idx ETF VCIT 17.82 772.8 0.07 11/19/09 0.4 5.4 2.5 Vanguard Financials ETF VFH 6.64 317.1 0.10 01/26/04 2.6 14.4 35.6
iShares MSCI Japan Index Fund EWJ 17.35 7,760.0 0.48 03/12/96 4.6 19.2 17.4 iShares Short Treasury Bond ETF SHV 6.55 404.7 0.15 01/05/07 0.1 0.5 0.6
Health Care Select Sector SPDR XLV 17.31 6,499.2 0.14 12/16/98 –0.8 19.1 22.3 iShares Floating Rate Bond ETF FLOT 6.54 620.1 0.20 06/14/11 0.2 1.6 1.8
iShares Select Dividend ETF DVY 17.11 424.5 0.39 11/03/03 1.2 9.7 16.3 iShares Core High Dividend HDV 6.47 51.1 0.10 03/29/11 –0.3 7.0 11.8
Energy Select Sector SPDR XLE 16.67 9,509.0 0.14 12/16/98 –0.8 –7.4 2.1 Schwab US Dividend Equity ETF SCHD 6.34 395.5 0.07 10/19/11 3.5 13.8 20.1
iShares Russell Mid Cap Value Index Fund IWR 16.23 465.2 0.20 07/17/01 1.7 13.5 20.9 Schwab US Small-Cap ETF SCHA 6.24 58.8 0.08 10/30/09 0.9 11.6 25.1
Vanguard Info Tech Ind ETF VGT 16.17 716.5 0.10 01/26/04 7.4 35.6 38.0 iShares MSCI EAFE Value ETF EFV 5.97 236.1 0.40 08/01/05 0.8 18.4 23.0
SPDR S&P Dividend ETF SDY 15.97 337.3 0.35 11/08/05 1.3 10.1 17.4 iShares S&P Mid Cap 400 Value Index Fund IJJ 5.69 50.1 0.25 07/24/00 1.0 7.5 20.4
Vanguard Intermediate Term Bond ETF BIV 15.00 553.0 0.07 04/03/07 0.1 3.9 0.5 iShares US Treasury Bond GOVT 5.44 2,409.4 0.15 02/14/12 –0.1 2.0 –0.8
iShares MSCI Eurozone EZU 14.54 5,278.7 0.48 07/25/00 0.9 27.9 31.1 iShares Silver Trust SLV 5.37 10,654.4 0.50 04/28/06 –0.3 3.1 –5.8
iShares S&P 500 Value Index Fund IVE 14.28 465.1 0.18 05/22/00 1.1 9.6 19.4 PowerShares Preferred Port PGX 5.33 1,049.7 0.50 01/28/08 –0.1 10.2 5.9
Guggenheim S&P 500 Equal Wght RSP 14.22 509.7 0.40 04/24/03 1.1 12.9 20.0 iShares MSCI India ETF INDA 5.31 2,587.2 0.71 02/02/12 7.1 31.1 21.1
iShares Edge MSCI Min Vol USA ETF USMV 14.15 780.6 0.15 10/18/11 1.9 15.1 18.6 Vanguard Extended Market Index ETF VXF 5.29 116.7 0.08 12/27/01 1.4 14.3 25.5
SPDR Bbg Barclays High Yield Bd ETF JNK 13.11 5,588.4 0.40 11/28/07 0.3 6.6 8.4 iShares S&P Small Cap 600 Value Index Fund IJS 5.13 50.2 0.25 07/24/00 0.6 7.8 26.0
Industrial Select Sector SPDR XLI 12.63 8,632.0 0.14 12/16/98 0.8 16.6 27.5 First Trust Dow Jones Internet Idx FDN 5.11 268.4 0.54 06/19/06 5.0 34.7 32.1
Schwab International Equity ETF SCHF 12.47 148.1 0.08 10/30/09 1.8 22.3 24.0 PowerShares FTSE RAFI US 1000 Portfolio PRF 5.08 131.6 0.39 12/19/05 1.4 10.5 20.8
Vanguard Small Cap Value ETF VBR 12.05 174.6 0.07 01/26/04 0.9 7.9 22.3 Vanguard Global ex-US RE ETF VNQI 5.07 326.9 0.15 11/01/10 0.5 20.5 16.1
*Expense charge is a maximum of 8 cents a share †Assets are estimated N.A.= Not applicable, fund is too new. Note: Total returns are based on the change in the net asset values, not changes in market prices.
Source: Thomson Reuters Net asset values can vary from market prices, which therefore can reflect a premium or discount to the net asset values.
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
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THE WALL STREET JOURNAL. Monday, November 6, 2017 | R15
JAMES STEINBERG
dex, is yielding less than 2.5%. Morningstar’s database have corporate-heavy funds down.
Funds that track the index 28% or more of their portfo- Howard Greene, lead port-
have delivered around 2% an- lios—double the 14% of the in- folio manager of the Hancock
nually in total return to inves- dex—in BBB-rated bonds. fund, says that his fund varies
tors for the five-year period Moreover, 75 of the 301 the amount of credit risk it
through Oct. 31. funds have at least 10% of takes, and, that right now it is
These are painful numbers their portfolios in bonds rated How Junky? in about the middle of its his-
for investors trying to main- BB or below—i.e., in junk Some mutual funds assume more credit risk than their index. Exposure in percent to bonds with toric range. Mr. Greene thinks
tain the purchasing power of bonds. Finally, 174 of 301 funds different credit risk. investors are “better served”
their capital. And one of the have more than 20% of their CREDIT QUALITY BBB at this point in the cycle with
JUNK OR
risks investors face is that assets in bonds rated BBB or some credit risk rather than
BBB BB B BELOW B RATED* BELOW
managers of intermediate-term below—a combination of the the interest rate risk that U.S.
bond funds—those whose lowest investment-grade rating Delaware Diversified Income (A) 29.65% 14.05% 10.57% 1.23% 25.85% 55.50% Treasurys have.
benchmark is the AGG and and junk. While many funds John Hancock Bond (A) 31.56 12.09 5.68 1.74 19.51 51.07 Roger A. Early, co-head of
which serve as the bond work- that loaded up on lower-grade fixed income at the Delaware
horses of most portfolios—may corporate bonds have done Federated Total Return Bond (inst.) 26.33 6.24 11.94 0.02 18.20 44.53 fund’s parent, says his fund is
be tempted to add bonds of well for the decade, the future Bloomberg Barclays US Aggregate 14.03 0.00 0.00 0.00 0.00 14.03 overweight in banking, utilities
dodgier credit quality to their may not be quite as rosy. and health care. “In a sense
funds to deliver a bigger yield. For example, the $4.4 bil- *Junk ratings are those below BBB Source: Morningstar THE WALL STREET JOURNAL. you’re paying full price for
This is especially true for lion Delaware Diversified In- credit these days, but credit
actively managed funds whose come Fund (DPDFX) has 25% current five-star Morningstar ber, which places it in the bot- sation for assuming risk. metrics have improved mark-
expense ratios may be higher of its portfolio in junk bonds rating and top 5% category tom half of the category. “There’s no doubt valuations edly since 2015, and there re-
than 0.50%, meaning they con- and more than half its portfo- showing for the past decade. and spreads are tight,” says mains an unabated global appe-
sume 20% or more of the yield lio in bonds rated BBB or The $11 billion fund lost nearly Tight spreads Donald Ellenberger, co-manager tite for credit and extra yield.”
the index has to offer. We ana- lower. The fund has produced 12% in 2008, placing it in the Owning a slug of BBB-rated of the Federated fund. “We
lyzed Morningstar’s intermedi- a 5.23% annualized return for bottom quartile of its peer or junk bonds doesn’t doom a don’t think spreads will tighten Mr. Coumarianos, a former
ate-term bond category and the decade through Sept. 30, group that year. fund to disaster. Good bond here, but we don’t see a cata- Morningstar analyst, is a
found some funds that are go- but it dropped 5% in 2008. Finally, the $8 billion Fed- selection can avoid the bank- lyst for them widening because writer in Laguna Niguel,
ing out on a limb. That performance landed it in erated Total Return Fund ruptcies. But even corporate of no recession and stronger Calif. He can be reached at
the middle of Morningstar’s (TLRAX) has 18% of its portfo- bonds that don’t fail exhibit demand in the economy. reports@wsj.com.
Stretching for yield intermediate-term bond cate- lio in junk bonds and 45% in volatility as yield spreads—the Spreads have been stable for
Around 14% of the AGG’s gory during a year when cor- bonds rated BBB or lower. It difference in yield between a long periods before, and this
bonds are rated in the BBB porate bonds performed badly. held up well in 2008, eking corporate bond and a U.S. could be one of those periods.”
range (BBB+, BBB or BBB-), John Hancock Bond Fund out a 0.12% gain and landing Treasury bond—widen and Spreads are as narrow now FUND RESULTS
which is the lowest rating of (JHNBX), which has nearly in the top half of the interme- narrow. That happens when as they have been in a decade,
bonds still considered “invest- 20% of its portfolio in junk diate-bond category. The fund investors’ attitudes change meaning corporate-bond and Lipper’s A-to-Z
ment grade,” or deemed likely
to make interest and principal
payments. Anything that ranks
and more than half of its port-
folio in bonds rated BBB or
lower, fared less well during
has had a middling showing
over the longer term, with a
4.29% annualized return for
from seeking risk to avoiding
risk, or when investors change
their minds about how much
junk-bond investors are ac-
cepting the least amount of
extra yield over Treasurys to
WSJ
.COM
monthly fund
listings are free
at WSJ.com/
below the BBB range is consid- the financial crisis despite its the 10 years ended in Septem- yield they require as compen- own those bonds. FundsETFs.
MARKET CAP IS SO
3 MARTINI LUNCH.
Market cap weighting has been around since the S&P 500 was created in 1957.
But who says it’s the best way to weight the index? Market cap can overreact to
sentiment and fear. Revenue doesn’t distort reality. In fact, it can be a truer indicator
That’s the right way to invest in this big, bold, beautiful world.
The alternate weighting approach employed by the Funds (i.e., using revenues as a weighting measure), while designed to enhance potential returns, may not produce the desired results. Because the Funds are
rebalanced quarterly, the Funds may experience portfolio turnover in excess of 100%. The greater the portfolio turnover, the greater the transaction costs to the Funds, which could have an adverse effect on a
Fund’s performance. There is no guarantee that the issuers of stocks will declare dividends in the future, or that dividends will remain at their current levels or increase over time.
Carefully consider fund investment objectives, risks, charges and expenses. Visit oppenheimerfunds.com or call your advisor for a
prospectus with this and other fund information. Read it carefully before investing.
©2017 OppenheimerFunds Distributor, Inc.
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
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R16 | Monday, November 6, 2017 NY THE WALL STREET JOURNAL.
DAN PAGE
experts, who say inexperi- Greg Stevens, vice president of options,” says Mr. Jalinski,
enced traders may not fully brokerage product develop- adding that he has seen people
understand the risks. ment for options at Fidelity “lose a lot of money buying
Interest in ETF options Investments, adding that op- options.” (or writer) of the option must right to buy an asset) profits if have a warning for individuals
comes amid growth in the tions trading is migrating to- An option is a contract that cover any financial gains due the ETF rises above the strike who buy call options: The
number of ETFs and the ward ETFs and away from in- gives an investor the right to the buyer when the option ex- price. The writer profits if the odds are against you.
amount of money invested in dividual stocks. buy or sell a security such as pires, or deliver the security ETF stays below that price. (It “With stocks, you buy for
them. According to Options Josh Jalinski, chief execu- an ETF at a predetermined at the predetermined price. works in reverse for put op- the long term and it can be for
Clearing Corp., a clearing- tive officer of a financial-advi- price (the strike price) for a The owner of a call option tions, which give the owner years,” says Joanne Hill, chief
house that guarantees trades, sory firm in New Jersey and set length of time. The seller (which gives an investor the the right to sell a security at a adviser for research and strat-
predetermined price.) egy at CBOE Vest. “But with
Here are a few things inves- options, you have to be correct
tors should keep in mind be- on your view in both time
fore trading options on ETFs: frame and price direction.”
Options contracts last a rel-
1. NOT-SO-LOW RISK
Even options-trading
strategies considered to be low
atively short time, typically a
lot less than a year, sometimes
just days in duration. “One of
risk can hurt investors new to the complexities is that op-
the world of options trading. tions expire,” says Ms. Hill,
Selling options on ETFs you “and if the stock price doesn’t
already own (a covered op- move [within that time
tion), is generally seen as less frame], you lose money.”
An additional two billion people risky than selling options on
ETFs you don’t own (a naked
Doug Kramer, co-head of
quantitative and multiasset
option). That’s because writers class investments at asset-
2. NAKED OPTIONS
Other strategies can sink
your finances even faster.
wouldn’t consider an options
strategy based on niche ETFs,
he says.
“There are people out there The problem with investing
writing naked options,” says in a small sector of the market
Mr. Stammers. “Those are the is that there can be much
most risky positions to be in.” greater price volatility. And
The most an investor can that greater volatility is mag-
earn from writing naked call nified in the options market
options is the premium col- because options prices are far
lected from selling them. The more volatile than stocks.
potential loss, however, is the- “The narrower the ETF—
oretically unlimited, depend- like a country or sector ETF—
ing on how high the ETF’s the more idiosyncratic the
price goes. Say an investor risks are relative to writing an
sells a call option with a strike S&P 500 option,” Mr. Kramer
price at $15 and the price of says.
the ETF rises to $45. That $30 The CFA Institute’s Mr.
difference is likely far greater Stammers says many individ-
than the premium the option ual investors who want to in-
writer received, translating vest in options might be “bet-
into big losses for investors. ter served by the
To be sure, there are ways diversification, strategic direc-
to hedge the risk of writing tion and risk management that
naked options, but some inex- professionally managed op-
perienced investors may not tion-based funds can provide.”
fully understand them.
Mr. Constable is a writer in
3. BUYING CALLS
Sophisticated investors
Edinburgh, Scotland. He can be
reached at reports@wsj.com.
IN TRANSLATION
ETF SPREADS
Investors don’t al- is $100 a share and
ways pay attention the other is $5. If
to bid-ask spreads. you are buying the
And those who do same number of
may find that com- shares, then the
paring spreads be- funds’ cents-per-
tween exchange- share spreads are
traded funds can get tricky. comparable in absolute costs.
In essence, the bid-ask But that isn’t the way peo-
spread is the difference be- ple invest in funds. Typically,
tween the highest price that a they buy funds in terms of
market maker is willing to pay value. For instance, they buy
for an asset and the lowest to however many shares total
sell it. The wider the spread, $5,000, or $10,000.
the more it costs investors for Using the example from
a round-trip trade. above, if the spread for both
How do you measure bid- the $100 ETF and the $5 one
ask spreads? is 2 cents, then clearly they
It is common to look at aren’t really the same in terms
spreads in terms of cents per of the round-trip cost. The
share, but experts say that cost to the investor of trading
isn’t always the best way. “It the $5 ETF is 20 times that
is fine to say something is 1 of the $100 ETF.
cent if you are comparing two That’s why websites such
stock prices that are the as Morningstar.com use per-
same,” says Will Rhind, chief centages of the value of the
executive officer of ETF com- share price to indicate the
pany GraniteShares. If the spread. “Mathematically the
CME Group is a trademark of CME Group Inc. The Globe logo is a trademark of Chicago Mercantile Exchange Inc. All other trademarks are the property of their respective owners. prices aren’t the same, then only way to be honest about
Copyright © 2017 CME Group. All rights reserved.
cents per share is misleading. the spread is to use percent-
A good example of lack of ages,” says Mr. Rhind.
comparability is when one ETF —Simon Constable
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
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THE WALL STREET JOURNAL. Monday, November 6, 2017 | R17
take it to the
S&PDJI can power of 500
indexology®
where investing begins
spdji.com/indexology
© S&P Dow Jones Indices LLC, a division of S&P Global 2017. All rights reserved. S&P® and Indexology® are registered trademarks of Standard & Poor’s Financial Services LLC.
Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC. It is not possible to invest directly in an index. S&P Dow Jones Indices receives compensation for licensing
its indices to third parties. S&P Dow Jones Indices LLC does not make investment recommendations and does not endorse, sponsor, promote or sell any investment product or fund.
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R18 | Monday, November 6, 2017 THE WALL STREET JOURNAL.
ISTOCKPHOTO/GETTY IMAGES
pact President Donald Trump would have
on Mexican trade.
Currencies are also at the top of the
7. Looking at 2017, the euro has risen
10% against its U.S. rival. But it was
after one event in particular that the eu-
trading hierarchy of the world, dwarfing rozone currency took off. What was that
other asset classes such as stocks and event?
bonds in terms of volume. In 2016, foreign-
exchange trades amounted to $5.1 trillion a A. President Trump’s inauguration
day. What’s the nickname for the U.S. dollar/British pound ‘pair’ trade? See Question No. 3. B. French elections
How much do you know about curren- C. Rising tensions with North Korea
cies? Let’s find out: an eye on a lot of information daily, as cur-
rencies are sensitive to both economic and 4. Which currency has shown the most
sensitivity to the renegotiations of
D. German elections
Call (800)454-9272 or
visit tdameritrade.com/portfolios to learn more.
Advisory services are provided by TD Ameritrade Investment Management, LLC, a registered investment advisor. All investments involve risk,
including risk of loss. TD Ameritrade, Inc., member FINRA/SIPC. © 2017 TD Ameritrade.