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* * * * * * TUESDAY, APRIL 3, 2018 ~ VOL. CCLXXI NO. 77 HHHH $4.00

DJIA 23644.19 g 458.92 1.9% NASDAQ 6870.12 g 2.7% STOXX 600 Closed (370.87) 10-YR. TREAS. À 3/32 , yield 2.732% OIL $63.01 g $1.93 GOLD $1,342.10 À $19.30 EURO $1.2303 YEN 105.91

What’s Tech Stocks Slide Amid Backlash

News Losses spill over into
other segments, with
what had been one of the most
enduring trades of the past
criminate selling spreading
across the technology indus-
try. Every stock in the S&P
Five major technology companies collectively known as the FAANGs
all S&P 500 sectors All together, the so-called 500 technology sector ended
have shed $397 billion in market value since the Nasdaq Composite
Business & Finance FAANG stocks—Facebook Inc., lower for the day.
down on Monday Inc., Apple Inc., The losses spilled over into
Index’s recent peak.
Netflix Inc. and Google parent other segments of the market Change in market value since March 12
Shares of the biggest names Alphabet Inc.—lost $78.7 bil- as well, with all 11 sectors of
T ech shares extended
their decline, with the
Nasdaq shedding 2.7%. The
in the technology industry ex-
tended their three-week de-
lion in market value Monday,
bringing their declines since
the S&P 500 and 28 of the 30
components in the Dow Jones
−$109.6 billion

losses spread to other sec- the Nasdaq Composite’s March Industrial Average dropping. −$108.2 Alphabet
tors, sending the S&P 500 By Akane Otani, 12 peak to $397 billion. The S&P 500 fell 2.2%, while
2.2% lower and the Dow in- Michael Wursthorn As the rout intensified, Please see STOCKS page A2 −$85.3 Facebook
dustrials down 1.9%. A1, B11 and Ben Eisen shares of companies ranging
from chip makers to elec-  A rocky opening to the −$76.3 Apple
 The administration
cline Monday, raising fears tronic-payment providers to second quarter........................ B11
wants to limit the CFPB’s in-
among investors that cracks biotechnology firms tumbled  Investors seeking havens lift –$17.8 Netflix
dependence in policing the Source: FactSet
could finally be appearing in too, highlighting the indis- the dollar..................................... B11 THE WALL STREET JOURNAL.
consumer-finance industry,
the latest salvo by the White

House to roll back oversight. A1
 GM will stop reporting Evacuation of Rebel Stronghold Marks Win for Syrian Regime
monthly car sales, saying a

Seeks to
30-day period doesn’t give
an adequate snapshot of its
business or the industry. B1
 Fintech firm GreenSky
confidentially filed for an
IPO that could come as
Rein In
soon as this summer. B1
 Longfin is being probed
by the SEC after the fintech
firm failed to disclose im- BY LALITA CLOZEL
portant information. B1 AND ANDREW ACKERMAN
 Mozido’s founder was

accused of defrauding the WASHINGTON—The Trump

fintech firm’s investors. B10 administration wants to limit
a federal regulator’s indepen-
 Sinclair is under fire for
dence in policing the con-
requiring news anchors at on sumer-finance industry, the
dozens of its local stations
latest salvo by the White
to read a segment warning
House to roll back Obama-era
about “fake stories.” B3
oversight put in place after
 Zuckerberg shot back the financial crisis.
us l,

at Cook’s critiques of Face- Mick Mulvaney, acting direc-

book, calling the Apple tor of the Consumer Financial
al a
CEO’s comments “glib.” B4 Protection Bureau, on Monday
asked Congress to pursue
 Elliott wants changes at
sweeping changes giving the ex-
ci on

software provider Comm–

ecutive and legislative branches
vault and plans to nomi-
control over the bureau’s regu-
nate four new directors. B4
lations, leadership and budget.
 Treasury officials are Major CFPB rules would need
meeting with financial firms congressional approval, for in-
er rs

about whether to release ADVANCE: Syrian soldiers patrol in a recently captured area in the Eastern Ghouta suburb of Damascus. Civilians and fighters began stance, and the CFPB’s director
trading data to the public. B11 leaving the last rebel stronghold near Syria’s capital on Monday, a major victory for the Assad regime after a yearslong war. A6 would answer directly to the
president, instead of being fully
 Tri-Source is facing ques-
independent. Its funding, which
tions from three senators
m e

currently comes from the Fed-

Powering U.S. Business: Private Capital

about the rising cost of its
eral Reserve, would be handled
cancer drug lomustine. B3
by Congress.
m rp

World-Wide The changes would be a

substantial departure from the
CFPB’s current structure,
 The EPA moved to ease which gives it wide latitude to
vehicle-emissions rules, sid- Firms raise more this way than through stocks and bonds, changing corporate governance oversee consumer financial
co Fo

ing with car makers and set- products without interference

ting up a fight with environ- BY JEAN EAGLESHAM AND COULTER JONES It was a mark of the dramatic rise ing the identity of investors, it is diffi- from Congress or the White
mentalists and California. A3 of private capital markets, which have cult to get a clear picture of what’s House, and make it less inde-
 Trade tensions between When the messaging app Telegram leapfrogged public markets to become happening in these markets. An analy- pendent than other banking
the U.S. and China esca- set out to raise billions of dollars this the most popular way for companies to sis by The Wall Street Journal found and markets regulators.
lated, as Chinese tariffs on year for a project to launch a crypto- raise money in the U.S., a phenomenon they have more than doubled in size “The bureau is far too pow-
American pork, fruit and currency, it shunned the stock market that in some ways is changing the very over the past decade, surpassing the erful, and with precious little
other goods took effect. A2 and instead invited a select group of way companies run and operate. growth of public stocks and bonds oversight of its activities,” Mr.
firms to invest in its virtual coins. Private markets have “reshaped the available to all investors. Mulvaney said in a report on
 The Justice Department These investors would be backing a financial landscape,” said Jason At least $2.4 trillion was raised pri- the CFPB sent to Congress. Sup-
set quotas for immigration project yet to be built. Little was Thomas, director of research at pri- vately in the U.S. last year. That wid- porters counter the bureau was
judges in an effort to speed known about the private company’s vate-equity firm Carlyle Group LP. “The ened a gap that emerged in 2011 with set up after the financial crisis
deportation cases. A3 ownership or finances. Even so, 81 in- growth of private capital is across the the public markets, which raised $2.1 Please see CFPB page A4
vestors stepped forward to pour in economy.” trillion, according to the Journal’s

 Mueller is looking into a

claim by longtime Trump $850 million, with other financing With little information disclosed analysis of tens of thousands of securi-  New court quotas aim to
rounds still to come. about money raised privately, includ- Please see INVEST page A8 speed deportation cases..... A3
adviser Stone that he had met
with WikiLeaks’ Assange. A4

In Oil Patch, Investors


 Trump recently raised

the idea of inviting Russian Villanova
leader Putin to the White Bulldozes
House, the Kremlin said. A6
 Egyptian President Sisi Push for New Frugality Michigan
was re-elected with 97% of
the vote, officials said, and
BY BRADLEY OLSON share buybacks and dividends For Title
over growth in recent years.
allies are now looking for
ways to extend his rule. A6 Big oil is starting to think Its shares have risen 29%, CHAMPS: The
small. beating the S&P 500 and sig- Villanova Wildcats
 Civilians and fighters be- Once defined by massive nificantly outperforming the celebrate after
gan leaving the last Syrian spending and ambitious explora- company’s U.S. rivals. Exxon, winning the NCAA
rebel stronghold near Da- tion, some of the world’s largest which recently laid out plans men’s basketball
mascus, marking a major vic- energy companies have begun to to increase spending by a third championship in a
tory for the Assad regime. A6 preach frugality. Investors in- or more beginning in 2020, has 79-62 dismantling
 California was sued by creasingly favor producers that fallen by about 9% in that time. of the Michigan
the U.S. over a state law promise to pump up cash pay- The success of ConocoPhil- Wolverines at San
that limits federal ability to outs rather than boost spending lips suggests that investors are Antonio’s
sell and manage lands. A3 to drill for more oil. looking for something different Alamodome. The
The best-performing major from big oil companies. Fading victory gave the
 The Supreme Court U.S. oil producer by share price are the days when shareholders program its second
turned away U.S. victims of increase in the past year isn’t bought Exxon or Chevron to get national title in
terrorist attacks in Israel Exxon Mobil Corp. or Chevron exposure to the big profits that three years. A12
seeking to sue the PLO. A2 Corp., but ConocoPhillips, a could come with rising oil
company that has prioritized Please see OIL page A2
 Boko Haram launched
assaults on a Nigerian mili-
tary base and villages close
to a regional capital. A7
 Died: Winnie Mandela,
INSIDE You’re Not 113 Years Old? Why People Lie to Facebook
i i i
81, antiapartheid activist and


late president’s ex-wife. A7 Fake details mess up algorithms, trick advertisers, muddle databases
BY HEIDI VOGT sonal details online. Some are lies about nearly everything
CONTENTS Markets............. B11-12 worried about identity theft, else: “It says that I graduated
Banking & Finance... B10 Opinion.............. A13-15
Business News.. B3,5 Sports........................ A12 WASHINGTON—When news some just want to protect their from Trinity College in Dublin.
Capital Journal...... A4 Technology............... B4 of an enormous Facebook privacy and some hope to fool I’ve never been to Ireland. It
Crossword............... A11 U.S. News............. A2-4 breach broke last month, Chris advertisers by mucking up the says my undergraduate degree
Heard on Street. B12 Weather................... A11
Life & Arts......... A9-11 World News........ A6-7
Wellens couldn’t help feeling a databases used to target ads. is in gymnastics. Anyone who
little smug. After all, nearly all While Ms. Wellens does use knows me knows that is laugh-

> EPA TO EASE WINNIE the information the technology

executive had given the social
her real name on Facebook, she able, because I’m not very phys-
ically flexible.”
CAR-EMISSIONS MANDELA media giant was false. Ms. Wellens, who is 65, put
STANDARDS DIES AT 81 Consumers, wary of how
their information is being used,
1910 as her birth year with the
idea that advertisers don’t tend
s Copyright 2018 Dow Jones &
lie about everything from names to bother with people more than
Company. All Rights Reserved U.S. NEWS, A3 OBITUARY, A7 to birth dates to professions 90 years old. The result? She
when companies ask for per- Target of slipper ads Please see FAKE page A8
For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or

A2 | Tuesday, April 3, 2018 THE WALL STREET JOURNAL.

U.S. Farmers Brace for Tariffs High Court Turns Away
The escalating trade ten-
sions between Beijing and Targeted by Tariffs
Terrorist Victims’ Suit
Washington have pulled Amer- Some of the U.S. exports that China will impose duties on. BY JESS BRAVIN government “sympathizes
ica’s farmers and agricultural Value of 2017 exports to China, in millions: deeply” with the victims. “The
exporters into the melee. WASHINGTON—The Su- court of appeals decided, how-
preme Court turned away ever, that the suit was not
Almonds, no shell $74.9
By Joshua Zumbrun American victims of terrorist consistent with due process
in Washington, and Oranges $48.5 attacks in Israel seeking to sue under the Constitution, and its
Jacob Bunge and Jesse the Palestine Liberation Or- decision did not meet the
Newman in Chicago Pistachios, in shell $37.9 ganization, its unsigned order usual standards for Supreme
the latest legal setback for pri- Court review,” she said.
Almonds, in shell $24.3
To the dismay of pork pro- vate efforts to hold sponsors While Congress has over-
ducers and fruit growers Grapes, fresh $22.2 and financiers of international whelmingly voted to let victims
across the U.S., China an- terrorism legally accountable. sue, diplomats and policy mak-
nounced tariffs of as much as Apples, fresh $18.4 Several federal laws afford ers are loath to let private par-
25% on American pork and victims the right to sue over in- ties use the courts for personal
Walnuts, no shell $16.8
eight other kinds of goods, ternational terrorism despite le- aims that could interfere with
and 15% tariffs on fruit and Walnuts, in shell $15.5 gal doctrines that traditionally U.S. objectives or expose Amer-
120 types of commodities, have insulated foreign entities ican interests to reciprocal le-
which China has said would Macadamia nuts, in shell $9.4 from liability. In individual cases, gal actions in other countries.
apply to about $3 billion in however, the U.S. government In two terrorism lawsuits
Hazelnuts, in shell $2.0
products. China’s tariffs were often has sided with alleged per- the Supreme Court did hear in
retaliation for the 25% steel Source: Western Growers THE WALL STREET JOURNAL. petrators against victims, rais- recent months, the Justice De-
and 10% aluminum tariffs im- ing procedural obstacles and cit- partment took positions
posed by the Trump adminis- ing policy considerations that against the victims. The depart-
tration last month. Washington Takes 22, U.S. Trade Representative biggest buyer of the oilseeds, make recovery difficult. ment’s view of legal issues that
The skirmish is poised to Robert Lighthizer said: “it’s not but the U.S. agriculture sector “Our government has a cer- carry international implications
escalate further this week, as Long View on Trade possible to take the position worries soybeans could draw tain split personality,” said carries great weight with the
President Donald Trump has that because of soybean farm- future retaliation if the trade Kent Yalowitz, an attorney justices, who are reluctant to
ordered a series of actions, in- ers we’re not going to stick up dispute escalates. representing victims in the second-guess the executive
cluding a new round of tariffs Washington’s trade leaders for our rights in a whole variety Lawmakers, especially from PLO case. While federal laws branch on foreign-policy and
on as much as $60 billion in have said they are playing a of ways and have hundreds of the Midwest, are worried about encourage such suits, “the national-security issues.
Chinese imports, to penalize longer-term game to stop Bei- billions of dollars with the the effect on their agriculture government often takes the In a case heard in December,
Beijing over allegations that jing’s unfair trade practices and other exporters and domestic producers, but many share the side of the perpetrators in in- a government lawyer argued
China is violating U.S. intellec- aren't focused on short-term producers be punished because administration’s concerns about terpreting the statutes,” he alongside an attorney represent-
tual property rights. effects. of unfair trade.” Beijing’s trade practices. said. “It’s quite discouraging.” ing the Iranian regime that vic-
But it is far from clear During a Senate Finance Soybeans weren’t targeted —Joshua Zumbrun, Jacob In 2015, after years of pro- tims who won a judgment over
whether the trade actions will Committee hearing on March for tariffs by China, the world’s Bunge and Jesse Newman cedural disputes, the suit filed Tehran-backed terrorism could
get out of hand. The U.S. and by 11 American families whose not seize antiquities belonging
China have also started pre- relatives were killed in six ter- to Iran that were on loan to the
liminary talks at reaching a ica’s most successful export sales abroad—particularly in tively small. The U.S. exported rorist attacks in 2002 to 2004 University of Chicago.

resolution. On the new round industries—agriculture—is the $1.17 billion world-wide $140.5 billion of agricultural went to trial. A federal jury in Still pending before the

of tariffs, the U.S. will first taking the hit from the first market for byproducts like goods last fiscal year, accord- New York awarded the plain- court is a case argued in Octo-
take comment from industry rounds of the spat, as are in- pigs’ feet and tails, where ing to data from the U.S. De- tiffs $218.5 million in damages, ber, in which Israeli victims of
for 30 days and then have 180 dustries that consume steel China is the biggest buyer, ac- partment of Agriculture. which under the Anti-Terror- suicide bombings sought to
days to decide whether to ac- and aluminum, which will now cording to data from the U.S.
on China was the largest single ism Act automatically was tre- collect a judgment from Arab
tually levy tariffs. face higher prices. Meat Export Federation. destination that year, receiv- bled to $655.5 million. Bank PLC, a Jordanian entity
That gives plenty of time Near Welcome, Minn., hog “These retaliatory tariffs ing about $22 billion in ex- In 2016, however, the Second they alleged helped finance the
for talks—although the negoti- farmer Wanda Patsche said will disproportionately affect ports. U.S. Circuit Court of Appeals, in attacks with money transfers
ations will they will be con- she is monitoring the news hardworking American pork The size of Beijing’s retalia- New York, threw out the ver- through its New York office.
us l,

ducted under the threat of daily for updates on trade pol- packers and producers,” said tion—tariffs on about $3 bil- dict, finding that U.S. courts In that case, the government
U.S. retaliation. U.S. officials icy, and the potential effect on Barry Carpenter, chief execu- lion of goods—indicates the lacked jurisdiction to hear the argued that the Second Circuit
al a
expect the Chinese to match prices as she prepares to sell tive of the North American direct impact of steel tariff is case. The Justice Department went too far in holding that cor-
their threats tit-for-tat, fur- half of her farm’s pigs by early Meat Institute, a Washington- also not enormous. Only about had argued the Supreme Court porations never could be sued
ther ramping up the pressure. summer. “I’m very, very ner- based trade group represent- 2% of U.S. steel imports come shouldn’t hear the victims’ ap- under the relevant statute. But it
ci on

The escalation with China vous,” Ms. Patsche said. ing meat companies including directly from China. China’s fi- peal of that ruling, and on gave little hope to the plaintiffs,
is creating a growing list of China’s penalties on U.S. Tyson Foods Inc. and Smith- nance ministry suggested Bei- Monday the justices agreed. saying it was doubtful that Arab
winners and losers across the meat, fruit and commodities field Foods Inc. jing’s response is meant to be Justice Department spokes- Bank’s U.S. operations were suf-
U.S. economy. One of Amer- raise uncertainty for U.S. pork The actions so far are rela- proportional to U.S. actions. woman Kerri Kupac said the ficiently tied to the attacks.
er rs

OIL skeptical about growth. Instead,

the push for cash is catching on.
Beginning in 2012, ConocoPhil-
capital”—the oil price it needs
to keep production flat and
pay for dividends and new in-
For Big Oil, Smaller Is Better
ConocoPhillips has outperformed peers by avoiding spending
dustry’s biggest dividend pay-
ers, it cut the payout by about
two-thirds in early 2016 as oil
m e

lips, once among the world’s vestments. increases and returning cash to shareholders prices fell to less than $30 a
Continued from Page One biggest oil companies, started The company’s “sustaining” barrel. It argues this is all part
prices, while being insulated to make this transition. It spun price is now $40 a barrel, Mr. Share-price performance in the past year of its cash-management strat-
m rp

somewhat from falling prices by off its refining business, closed Lance said, which means that egy. As oil prices rise, it returns
operating refiners and petro- its deep-water exploration unit with U.S. crude selling for ConocoPhillips the bounty to investors, but
chemical plants. and chose to distribute more of more than $60, much of the when prices fall below the sus-
An increasing number want its free cash flow to sharehold- excess can go to shareholders. EOG Resources taining price, it can sell assets,
conservative, stable returns— ers rather than reinvest it. While other companies have cut dividends or increase debt.
co Fo

not unlike the reason that in- Few oil chieftains at the boosted share buybacks and div- Chevron Crude prices are up by about
vestors look to the utility in- time were moving in that di- idends, few have as low a sus- 27% in the past six months, but
Occidental Petroleum
dustry. rection. It was “a pretty lonely taining price. Many are turning unlike in the past, oil equities
“The oil-and-gas industry is place,” said Ryan Lance, Cono- to asset sales to balance new haven’t followed, suggesting
Anadarko Petroleum
on its way to transitioning to a coPhillips’ chief executive. spending and cash-return plans that some investors lack confi-
more mature market in the The strategy was shaped by with the funds they receive from Exxon Mobil
dence in the price rally.
U.S.,” said Tim Beranek, who a view that rising U.S. oil out- operations. In this climate, shareholders
helps manage more than $18 put would create a new era of For example, Hess Corp. in- –10% –5% 0 5% 10% 15% 20% 25% 30% are likely to prefer producers
billion in assets for Cambiar In- uncertainty. American oil pro- creased its buyback program by Source: FactSet THE WALL STREET JOURNAL. like ConocoPhillips that demon-
vestors. “Over the last decade, duction recently topped 10 $1 billion in March, avoiding a strate frugality, said Doug Ter-
with the evolution of shale, it million barrels a day, breaking proxy fight with an activist $3 billion in assets last year. dollars of their shares, but reson, an energy analyst at
was an emerging industry and the U.S. record set in 1970. shareholder. The company is ex- Exxon and Chevron, which Chevron suspended its pro- Evercore ISI who has champi-
attracted a lot of growth inves- “The [price] cycles are get- pected to generate $1.6 billion are much larger than Conoco- gram in 2015 and Exxon’s was oned greater discipline in oil.
tors. Now, the shareholder base ting shorter, from peak to from operations this year, ac- Phillips and have far higher scaled back significantly. Chev- “One of the key concerns in

just wants return on capital.” peak and trough to trough,” cording to analyst estimates on profits, also have longstanding ron is expected to resume its the industry is that companies
As surging U.S. crude pro- Mr. Lance said. Instead of FactSet. With $2.1 billion in dividends that neither com- buyback program soon. are growing more disciplined
duction continues to threaten “chasing the cycles up and spending planned for 2018, pany cut after oil plunged in The recent run of Conoco- today, but if the oil price rises,
price rallies with new supply, down,” he said, ConocoPhillips that equates to a cash deficit 2014. They also had a long his- Phillips hasn’t been without they will increase spending,” he

investors have become far more has focused on its “sustaining of $1.5 billion. Hess sold over tory of buying back billions of challenges. Once among the in- said.

STOCKS the red, chip maker Advanced
Micro Devices Inc. fell 5.2%,
while videogame firm Activi-
sion Blizzard Inc. lost 3.5% and
with technology-focused
stocks making up seven of the
10 most-shorted names, ac-
cording to S3 Partners, a fi-
46% and Alphabet ending the
year up 33%. The sector’s rally
sparked fears among some an-
alysts that tech could be Israel was founded on the American Association of
Continued from Page One networking-gear maker Cisco nancial analytics firm. Inves- headed toward a repeat of May 14, 1948, but Israelis Apparel and Footwear in a
the blue-chip index fell 1.9% Systems Inc. shed 4.4%. tors made $1 billion in paper March 2000, when highflying mark the establishment of the Heard on the Street article on
and the tech-heavy Nasdaq “Whenever you think profits on Monday betting dot-com stocks crashed, lead- state based on the Hebrew Saturday about retailers.
Composite lost 2.7%. there’s some relief in sight, we against the FAANG stocks. ing to a broader market sell- calendar, which means cele-
“Facebook was a golden get some political noise that “This tech wreck is not a off. brations fall on different Sono Osato’s husband,
child, the one everyone on the comes out and it spooks the new story. But we’ve gotten a The FAANG shares are now dates annually in the Grego- Victor Elmaleh, died in 2014.
Street knows,” said Paul Kar- entire technology sector,” said crescendo of bad news, and it mixed for 2018—only Amazon rian calendar. A World News A Mansion article on Friday
rlsson-Willis, a managing di- Mohit Bajaj, director of ETF seems like this one is lingering and Netflix remain in the article on Monday about pro- about the sale of Ms. Osato’s
rector and head of global eq- trading solutions at brokerage longer because we’ve had black, while all three major tests in the Gaza Strip incor- estate incorrectly said her
uity sales and trading at WallachBeth Capital. more questions crop up that stock indexes are lower. The rectly said Israelis annually husband died in 2011.
Cabrera Capital. But Face- At the same time, traders haven’t been answered yet,” Nasdaq Composite gave up its mark the establishment of
book’s recent admission that a said a series of technical fac- said Art Hogan, managing di- gains for the year on Monday their state on May 14. Kristal Herr’s first name
third-party firm with ties to tors helped reinforce the con- rector and chief market strate- and is down 9.5% from its high was misspelled as Krystal in a
the Trump administration had cern that momentum in the gist at B. Riley FBR. three weeks ago. The name of the American March 24 Business News arti-
improperly kept its users’ data market is waning. The S&P Monday’s selling came on When asked to identify the Apparel & Footwear Associa- cle about Johnson & Johnson
has sparked concerns among 500 on Monday closed below the heels of broader shakiness trades they felt had been over- tion was incorrectly given as and its advertising agencies.
many investors that other tech its 200-day moving average in the stock market, which has played in the market, 38% of
companies could be suffering for the first time since June struggled for traction this year fund managers named FAANG Readers can alert The Wall Street Journal to any errors in news articles by
from similar, if not bigger, is- 2016, shortly after the British as investors have contended stocks as well as their Chinese emailing or by calling 888-410-2667.
sues, Mr. Karrlsson-Willis and with the prospect of rising in- counterparts—Baidu Inc., Ali-
other money managers said. terest rates, global trade ten- baba Group Holding Ltd. and
Monday’s selling extended a sions and sliding tech shares. Tencent Holdings Ltd.—ac- THE WALL STREET JOURNAL
streak of rough trading for the
Monday’s selling Still, many remain optimis- cording to a Bank of America (USPS 664-880) (Eastern Edition ISSN 0099-9660)
(Central Edition ISSN 1092-0935) (Western Edition ISSN 0193-2241)
technology sector, which after came on the heels of tic about the industry’s Merrill Lynch survey con-
Editorial and publication headquarters: 1211 Avenue of the Americas, New York, N.Y. 10036
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higher for much of the past
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Amazon shed 5.2% on Mon- to FactSet, eclipsing the say distinguishes the run-up in Only publication of an advertisement shall constitute final acceptance of the advertiser’s order.
day after President Donald vote to leave the European broader S&P 500’s expected technology shares then with Letters to the Editor: Fax: 212-416-2891; email:
Trump took to Twitter to blast Union. That signals there 17% earnings growth rate. the tech sector’s more recent
the company’s business prac- could be more market turbu- But the recent volatility in dominance. NEED ASSISTANCE WITH YOUR SUBSCRIPTION?
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Board over the disclosures it during the recent volatility, sector that many had feared a survey released last week by REPRINTS & LICENSING
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Among the other names in bets against the tech sector, ing 53%, Apple running up Nasdaq peaked in March 2000.
For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or

THE WALL STREET JOURNAL. * * Tuesday, April 3, 2018 | A3


EPA Easing Vehicle-Emissions Standards

Redoing rules that
aimed to slow climate EPA’s Pruitt Probed
change sets up a likely For Lobbyist Links
fight with California
The White House is con-
The Environmental Protec- ducting a review of Environ-
tion Agency moved to ease mental Protection Agency
Obama-era vehicle emissions chief Scott Pruitt’s activities
standards, siding with car mak- after reports that he had
rented accommodations in
By Timothy Puko, Washington at below-mar-
Mike Spector ket rates from the family of
and Chester Dawson an energy lobbyist, a White
House official said Monday.
ers who say the rules don’t While there is no sign
work in an era of cheap gas, yet that Mr. Pruitt’s job is in
and setting up a fight with en- jeopardy, White House offi-
vironmentalists and California. cials said that few people
The rules would require auto are coming to Mr. Pruitt’s
makers to cut emissions enough defense. These people also
so that new vehicles sold aver- said Mr. Pruitt has alienated
aged more than 50 miles a gal- some colleagues by making
lon by 2025. Monday’s decision known his desire to succeed

would start a process to relax Jeff Sessions as attorney

future standards covering vehi- general should Mr. Sessions
cle model years 2022-2025. The step down or be fired by
standards equal roughly 36 mpg President Donald Trump.
in real-world driving for 2025. A spokeswoman for Mr.
The decision is expected to Pruitt didn't respond to a
prompt a battle with California request for comment.
and other states that have im- The purpose of the in-
plemented tougher controls on quiry is to “dig a little
greenhouse-gas emissions to Auto makers argue current standards are unrealistic, because pickup and SUV sales account for more than 60% of the U.S. market. deeper,” the official said, in-
limit air pollution and slow cli- dicating that the White
mate change. California has a Auto makers have argued cized Obama administration of- until April 2018, the EPA was what improvements it could House isn’t satisfied with a
waiver under the Clean Air Act current standards are unrealis- ficials, saying they misread the free to make it earlier and said make without upsetting strong statement from the EPA
that allows it to set its own, tic at a time when consumers market. He also claimed they in November 2016 that its pro- profits. She added that the last week that the $50-a-
higher standards. The EPA said demand less-efficient cars and rushed their review of vehicle cess was exhaustive. Gina transportation sector rivals night lease agreement didn’t
in its news release Monday that trucks. After oil prices plum- efficiency for political reasons, McCarthy, the EPA administra- power plants as the top source violate federal ethics rules.
it is re-examining that waiver. meted in recent years, sales of noting they set the standards tor at the time, said then that of greenhouse emissions. The White House inquiry

Redrafting these standards pickup trucks and sport-utility after a review they started and current rules were “affordable California Attorney General into Mr. Pruitt’s actions

has been one of the Trump ad- vehicles soared. They now ac- completed in two months, im- and effective,” and were on Xavier Becerra, who has won le- comes at a moment of rapid
ministration EPA’s highest pri- count for more than 60% of the mediately after Donald Trump track to double fuel economy. gal victories aimed at stopping turnover inside Mr. Trump’s
orities, and is part of its effort U.S. market. won the 2016 election. On Monday, she said the regulatory rollbacks, on Mon- administration.
to undo Obama-era climate In making the move, EPA Ad- on While the deadline for mak- Obama administration collabo- day reiterated his threat to sue —Peter Nicholas
rules that it calls overly strict. ministrator Scott Pruitt criti- ing a final determination wasn’t rated with the auto industry on over emissions policy.

States Wrestle With Gun Measures Rules Aim to Speed

us l,
al a
Purchasing Power Without parental consent
Deportation Cases
ci on

As statehouses across the State minimum ages for buying a long gun No minimum age
country approach the end of 16
their legislative sessions in the 18 BY LAURA MECKLER three days of a hearing on the
coming weeks, advocates on ei- 21 merits of the case. Another met-
ther side of the gun debate are Wash. N.H. WASHINGTON—The Justice ric demands that 95% of all mer-
er rs

pushing hard to get their mea- Mont. Vt.* Maine Department has notified immi- its hearings be completed on the
N.D. Minn.
sures across the finish line. Ore. gration judges that it will begin initial scheduled hearing date.
Already, some states—in- Idaho S.D. Wis. N.Y. Mass. evaluating their job perfor- Immigration attorneys and
cluding Florida and Vermont— Wyo. Mich. mance based on how quickly the union that represents judges
m e

have passed measures to Iowa Pa. R.I. they close cases, aiming to warned the rules would pres-
Nev. Neb.
toughen access to firearms, Ind. Ohio
Ill. Conn. speed deportation decisions and sure judges to resolve cases
though it is hard to know if Utah reduce a lengthy backlog. quickly at the expense of hear-
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Colo. Va. N.J.

others will follow suit. Many Calif. Kan. Mo. Ky. The new quotas for judges to ing out evidence that could help
proposed bills could be left N.C. meet—laid out in a memo sent defendants trying to stay in the
Tenn. Md.
dangling when the sessions Ariz. Okla. Friday to immigration judges— U.S.
N.M. Ark. S.C. D.C.
end in the spring and early follow other directives by the “This is a recipe for disaster,”
summer. Miss. Ala. Ga. department to expedite han-
co Fo

Gun control has become a Texas dling of cases. Attorney General

more hotly debated agenda Jeff Sessions has said that the
item since the killing of 17 peo-
Fla. backlog at the immigration
Union says quotas for
ple at Marjory Stoneman Doug- Hawaii courts allows people who should immigration judges
las High School in Parkland, be deported to linger inside the
Fla., in February helped set off U.S.
are threat to judicial
national protests. *Legislature voted to increase the purchase age to 21 from 16 The union representing the independence.
Dozens of states have intro- Note: If no state minimum age, federal law prohibits licensed dealers from selling a long gun to anyone under 18. judges counters that the met-
duced bills that would expand Source: Giffords Law Center to Prevent Gun Violence THE WALL STREET JOURNAL. rics are a threat to their judicial
background checks, ban bump- independence, while lawyers
stock devices, limit sales of There has also been a nota- warn they will unduly influence said A. Ashley Tabaddor, an im-
semiautomatic weapons to cus- ble shift in Vermont, a mostly judge’s decisions. migration judge in Los Angeles

tomers 21 and over, and give Democratic state with a thriv- The new standards, reviewed who is president of the National
police more power to seize ing hunting industry and a Re- by The Wall Street Journal, are Association of Immigration

guns from dangerous and men- publican governor. On Friday, to take effect for the next fiscal Judges. “You are going to, at
tally troubled individuals. the Vermont Senate passed a year beginning Oct. 1. They ha- minimum, impact the percep-
So far, gun-control advo- bill that bans bump stocks, im- ven’t been released publicly. tion of the integrity of the
cates have notched several poses new age restrictions, re- In an email to judges sent on court.”

modest wins, reversing recent quires background checks for Friday, James McHenry, director Union officials also com-
years in which states have private firearms sales, and of the Executive Office for Immi- plained that they hadn’t been
moved to expand gun owners’ bans high-capacity ammunition gration Review, said the new given details needed to deter-
rights and efforts to tighten magazines. system wasn’t unique to the im- mine how performance will be
gun regulations in Congress Vermont Gov. Phil Scott’s of- migration courts. calculated. And they said that
have failed. Republican gover- fice said he plans to sign the “The purpose of implement- some judges, for instance those
nors in Florida, Vermont, Utah, bill as well as two other gun- ing these metrics is to encour- working on the U.S.-Mexico bor-
Ohio and Arizona have soft- control measures advancing in age efficient and effective case der, have dockets with lots of
ened their pro-gun positions the Legislature, pending a management while preserving quick cases and others have
and broken with the National technical review. Vermont’s Mr. immigration judge discretion more cases that are complex
Rifle Association. Scott won the NRA’s endorse- and due process,” he wrote. and drawn-out.
Florida Republican Gov. Rick ment in 2016 and assured vot- Florida and Vermont are among states that have passed Under the new quotas, judges Mr. O’Malley said the letter
Scott in March signed a pack- ers during his re-election that measures to toughen access to firearms. Above, preparations will be required to complete 700 to judges made clear they will
age of gun laws. With biparti- he wasn’t “advocating for any being made in February for a gun show in Florida’s Dade County. cases a year and to see fewer have the opportunity to “pro-
san support, the Legislature changes in our gun laws.” But than 15% of their decisions sent vide input” before they are
stiffened age requirements for Mr. Scott has since said he was already more restricted, Demo- Alabama, Arizona, Iowa, Kan- back by a higher court. Over the rated unsatisfactory.
gun purchases and outlawed “jolted” by recent headlines: cratic-controlled legislatures are sas, Kentucky and Tennessee. past five years, the average Unlike judges in regular
bump stocks—devices that en- Two days after the Florida pursuing tougher measures. In Democratic-led Maryland, a judge completed 678 cases in a courts, immigration judges work
able semiautomatic rifles to mass shooting, Vermont police New Jersey’s Assembly on red-flag bill cleared the House year, said Justice Department for the executive branch of the
operate like fully automatic arrested an 18-year-old accused March 26 passed a number of of Delegates but faces hurdles spokesman Devin O’Malley. But government.
weapons, like the device used of planning a mass shooting at gun bills, including expanded in the state Senate. there was a range, he said, with The backlog in the immigra-
by the Las Vegas mass shooter the teen’s former high school. background checks, a red-flag With few exceptions, sup- some judges completing as tion courts is approaching
in October. Bump-stock bans were en- law and a requirement that ap- port for gun-control legislation many as 1,500 cases in a year. 700,000 cases, up from fewer
Florida became the sixth acted in Washington, Massa- plicants seeking a concealed- has split along party lines. The In addition, they will be re- than 225,000 in 2009, according
state to enact a “red flag” law, chusetts and New Jersey after handgun permit show a “justifi- partisan division has been a quired to meet other metrics, to the Transactional Records
allowing law enforcement to the Las Vegas shooting, while able need” to be armed. The big obstacle for gun-control ad- depending on their particular Access Clearinghouse at Syra-
petition a court to temporarily Oregon and Washington tight- bills still need Senate approval. vocates, with Democrats con- workload. One standard de- cuse University.
confiscate firearms from peo- ened laws restricting guns Other red-flag bills have trolling a majority of seats in mands that 85% of removal
ple deemed dangerous to from domestic abusers. struggled to gain traction in just over a quarter of state- cases for people who are de-  ‘Caravan’ in Mexico raises
themselves or others. In states where firearms are more-conservative states like houses. tained be completed within Trump’s ire................................... A7

U.S. Sues California Over Law Restricting Sales of Federal Lands

BY ALEJANDRO LAZO to offer a “first right of re- national parks for sale or for various federal agencies began statement. Federal officials Democratic state officials have
fusal” to the California State energy and industrial develop- receiving letters from the Cali- said the California law is the sought to thwart President
The Justice Department Lands Commission before the ment—including Yosemite, fornia lands commission say- only one of its kind in the U.S. Donald Trump’s policies on
sued California on Mon- sale or lease of any federally Redwood, Death Valley and ing any efforts to sell and lease California Attorney General the environment and immigra-
day, seeking to block a state owned public lands in the Joshua Tree. federal land had to be cleared Xavier Becerra, a Democrat, tion.
law that restricts the U.S. gov- state. The Justice Department with the commission first. said the state would fight the The debate over public
ernment’s ability to sell and The measure was passed by said the California measure “The Constitution empow- suit. “Our public lands should lands in California comes after
manage federal public lands. the Democratic-led state Legis- was unconstitutional, and in- ers the federal government— not be on the auction block to Mr. Trump decided in Decem-
The lawsuit, filed in U.S. lature and signed by Gov. Jerry terfered with the federal man- not state legislatures—to de- the highest bidder,” he said. ber to significantly reduce the
District Court in Sacramento, Brown, amid concerns that the agement of public lands. cide when and how federal The suit is the latest battle size of Utah’s Bears Ears and
challenges a 2017 law that re- Trump administration would Agency officials said the law lands are sold,” said Attorney between the Trump adminis- Grand Staircase-Escalante na-
quires the federal government target parcels of California’s came to their attention after General Jeff Sessions in a tration and California, where tional monuments.
For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or

A4 | Tuesday, April 3, 2018 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.


Peril and Promise in Trump-Kim Summit North Korea’s tone and a new there there at all,” Mr. Green President Richard Nixon. thought it might have led the dential trip to China, his
desire to engage in diplomacy. says. Could the troubled Ameri- Soviets to decide they could meetings with Chinese lead-
But he fears the North Ko- Such risks aren’t a reason can-Cuban history have been challenge him by putting nu- ers Mao Zedong and Zhou En-
reans also may be laying traps to avoid meeting with Mr. different if a presidential sum- clear missiles in Cuba. lai and the signing of a com-
for Mr. Trump. “Kim Jong Kim; diplomacy, after all, is mit had happened at that for-  Nixon’s visit to China, muniqué that has provided
Un said he is ready to discuss preferable to the potentially mative stage? There is no way 1972. This summit meeting is the framework for U.S.-Chi-
the denuclearization of the horrific consequences of war to know now. In a memo after an example of why Mr. nese relations ever since.
Korean Peninsula,” Mr. Green on the Korean Peninsula. his meeting, Mr. Nixon said he Trump, whose public threat to

CAPITAL JOURNAL said in an interview. “Sure, Rather, they argue for careful found the Cuban “sincere” but rain “fire and fury” make him eagan-Gorbachev in
By Gerald F. Seib sounds good.” But, he adds, preparations and clear think- also “either incredibly naive seem an unlikely negotiating Reykjavik, 1986. An-
“This is an old, old trick.” ing about American goals— about Communism or under partner for North Korea, actu- other example of the
and provide a cautionary note Communist discipline.” ally may be in a good position perils of ill-timed and under-

Michael Green, a former hat the North Kore- about Mr. Trump’s tendency  Kennedy-Khrushchev in to deal with Mr. Kim. But Mr. prepared summitry. President
White House and Pentagon ans mean by denu- toward impulsive decision- Vienna, 1961. This ill-fated Nixon’s China trip also is an Ronald Reagan accepted an
official, has long experience clearization, he says, making. Mr. Trump has also meeting between President example of the virtues of invitation to meet the rela-
dealing with North Korea isn’t that they start by elimi- proposed a summit meeting John F. Kennedy and Soviet long, careful preparation. tively new Soviet leader,
both as a gov- nating their nuclear arms, but soon with Russian President leader Nikita Khru- As one of the foremost Mikhail Gorbachev, in a ses-
ernment offi- rather that the U.S. starts by Vladimir Putin. A look back at shchev stands as an example anti-Communist crusaders of sion meant mostly to lay the
cial and pri- removing its umbrella of nu- notable past presidential sum- of the perils of hasty and ill- his generation, Mr. Nixon groundwork for later, more
vate citizen. clear-weapons protection for mitry may offer lessons on prepared summitry. seemed an unusual candidate detailed arms-control talks.
Based on that, South Korea. Similarly, he how to approach—and not ap- Mr. Kennedy had just taken to open ties with the world’s Instead, the conversations
he views the says, Mr. Kim could propose proach—such sessions: office and reached out to Mr. most populous Communist drifted into a discussion in
summit meet- freezing his nuclear and mis-  Eisenhower-Castro, Khrushchev in hopes of talk- country. But that background which Mr. Reagan proposed
ing planned for next month sile tests in exchange for an 1959: This is a case in which ing about, among other also gave him the credibility eliminating all nuclear weap-
between President Donald American agreement to freeze an American president, also things, a Nuclear Test Ban to take some chances; no one ons—a proposal that horri-
Trump and North Korean its military exercises with faced with an impetuous Treaty. They met in Vienna, would think he was naive fied his national security ad-
leader Kim Jong Un with South Korea, or suggest a young leader, chose not to and their session turned into about dealing with the Chi- visers. They scurried to walk
some trepidation. peace treaty with the U.S. meet him at all. Shortly af- an argument about the future nese. Yet there was nothing back the idea, though then-
The Trump team, he says, Both steps, he says, may be ter Fidel Castro led the Cu- of Germany and an opportu- impulsive about Mr. Nixon’s Secretary of State George
has done a good job of put- designed to ease pressure on ban revolution, he visited nity for the grizzled Soviet to move. His administration Shultz has long argued that
ting economic pressure on Pyongyang while leaving Washington. President bully the young American worked for more than two subsequent arms-control
North Korea over its nuclear American allies in South Ko- Dwight Eisenhower snubbed president. Mr. Kennedy later years at quieter negotiations agreements showed “a sig-
and missile programs, which rea and Japan exposed. him, and shuffled Mr. Castro acknowledged it was some- with the Chinese before Mr. nificant value in thinking
may have led to a shift in “There may not be any off to meet with then-Vice thing of a disaster, and Nixon’s groundbreaking presi- big” in Reykjavik.

Districts Trump Flipped to Test GOP’s Hold Assange

BY DANTE CHINNI may turn on whether Republi-
cans can match that apparent
Claim Gets

MUSCATINE, Iowa—John enthusiasm.

Tompkins had voted for Barack Mr. Tompkins, for example,
Obama, but in 2016 he eagerly says he often doesn’t vote in
backed Donald Trump.
“Trump is on the right
track,” said the 83-year-old Air
on midterm elections and isn’t
sure he will cast a ballot this
Force veteran. “He wants to get In addition to motivating BY SHELBY HOLLIDAY
rid of the illegals.” Trump supporters for the mid- AND ROB BARRY
Mr. Tompkins’s friends, terms, Republicans also have to
us l,

gathered for morning coffee at hold voters like Tom Spread, The special counsel investi-
the Hy-Vee Grille, said they had the president of Muscatine’s gating alleged links between
al a
made the same switch, moti- Community Bank & Trust. He Trump campaign associates

vated by Mr. Trump’s promises said he voted for Mr. Trump in and Russians is looking into
to boost military funding and 2016 only after great delibera- longtime adviser Roger Stone’s
ci on

stop illegal immigration. tion. “The lesser of all evils was 2016 claim that he had met
Party-switchers like Trump,’’ Mr. Spread said. with WikiLeaks founder Julian
these helped propel the Repub- “Would I do it again? It de- Assange, according to a person
lican president to the White pends on who’s on the ballot. I familiar with the matter.
House, in the process flipping was holding my nose.” WikiLeaks, an antisecrecy
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20 congressional districts into His inclination is to back a website, later released a trove
Mr. Trump’s column that had GOP candidate in the House of material on Democratic can-
voted twice for Mr. Obama, a race who in the past drew dis- didate Hillary Clinton that U.S.
Democrat. tance from Mr. Trump. If a more officials say was hacked by
m e

This year, a central question Trump-supporting candidate Kremlin operatives.

is whether these Obama-Trump wins the nomination, he said, he In an email dated Aug. 4,
voters will back Republican isn’t sure what he will do. 2016, Mr. Stone wrote: “I dined
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candidates with the same en-

‘Trump is on the right track. He wants to get rid of the illegals.’ The twice-Obama, now- with Julian Assange last
thusiasm they felt for Mr. Trump districts include three of night,” according to a copy of
Trump, or whether the presi- John Tompkins, Iowa Trump supporter Iowa’s four congressional dis- the message reviewed by The
dent’s unconventional appeal tricts, as well as those in other Wall Street Journal. Mr. Stone
assembled a voter coalition largely rural areas, such as is a longtime informal adviser
The Obama-Trump Districts
co Fo

that is unique to him. western Wisconsin, upstate to President Donald Trump

Some analysts see the GOP There are 20 House districts that voted twice for Barack Obama before flipping to back Donald Trump in New York and in Minnesota. who at that point had no offi-
challenges this year as similar 2016. These districts tend to be... White voters with blue-collar cial campaign role.
to those Democrats faced in jobs, who as a whole favored The note, to former Trump
...less diverse... ...older... ...and less educated.
midterm elections when Mr. Mr. Trump by large margins in adviser Sam Nunberg, adds to
Percentage of white, Median age of population Share of population with at least a
Obama was in the White House. 2016, are plentiful in these dis- a growing number of times
non-Hispanic population bachelor’s degree
“The Obama coalition came out tricts. Mr. Stone claimed during the
for Obama, but not when he Current Republican In Iowa’s First Congressional campaign to be in contact with
wasn’t on the ballot. I think it’s Representative District, Republican Rep. Rod WikiLeaks. The next day,
the same for Trump,” said Chris Current
Blum will likely need to keep Mr. Stone publicly praised Mr.
Krueger, a strategist at Cowen Democratic the party unified to win re-elec- Assange via Twitter.
& Co., a financial services and Representative tion. The seat was held by In an interview, Mr. Stone
research firm. “They embraced Democrats for four terms until said the email to Mr. Nunberg
the cult of personality around 2015, and analysts list the race was a joke and that he never

the candidate, not the party.” this year as a tossup. communicated with Mr. As-
The question is particularly 60% 70 80 90 36 38 40 42 44 20% 25 30 35 Mr. Trump’s presidency has sange in 2016.
pressing in places such as National rate, 61.3% National rate, 37.9 National rate, 33.4% fired up Democrats in Dubuque, “I never dined with As-
southeast Iowa’s Second Con- Source: Census Bureau (demographics); Associated Press (election results); U.S. House (members) THE WALL STREET JOURNAL. where the past year has sange,” he said. The email

gressional District, one of the brought occasional protests “doesn’t have any significance
20 congressional districts that them a central role in the battle time supporting Mr. Trump. does things, truthfully,” said outside Mr. Blum’s office, area because I provably didn’t
had backed Mr. Obama twice between the parties for control The political converts who Jim Evans, a local real-estate businesses owners say. The go…there was no such meet-
before supporting Mr. of the House. Nine of the dis- backed Mr. Trump still support investor. “It fires you up.” 2016 election represented a ing. It’s not what you say, it’s
Trump. Seventeen of those tricts are represented in the him enthusiastically, interviews But with Democrats showing seismic shift in the area. It was what you do. This was said in
party-switching districts are House by Republicans, in two of Iowa’s battleground high motivation in elections the first time since 1956 that jest.”
battlegrounds for the House and eight backed Democrats for districts show. “I like him being since Mr. Trump took office, the county gave its vote to a Mr. Stone said he was flying
this year, analysts say, giving the House while at the same a rebel and I like the way he House races in districts like this GOP presidential nominee. out of Los Angeles the night
before the email, putting him
thousands of miles away from

CFPB posal next week in testimony

before the Senate Banking
A spokeswoman for the
Mr. Mulvaney, a former Re-
publican lawmaker from South
Carolina, is a longtime critic of
the CFPB. He took over the bu-
nies than the CFPB had during
the Obama administration.
The interim chief also
quickly worked to roll back
Warren said.
“Mr. Mulvaney has under-
mined the bureau’s work on
behalf of consumers and has
Ecuador’s Embassy in Lon-
don, where Mr. Assange has
been holed up since 2012 un-
der asylum. Mr. Stone pro-
Continued from Page One committee declined to com- reau on an acting basis in No- initiatives developed by his repeatedly failed to comply vided screenshots showing a
to be insulated from politics. ment on Monday’s report. vember after President Barack predecessor, including actions with legal mandates.” She also booking for a person named
Monday’s report shows Re- The proposal faces long Obama’s appointee, Richard targeting the payday-lending argued the CFPB was already “Roger” on a Delta flight de-
publicans’ determination to odds of clearing Congress, Cordray, stepped down. The industry, and installed new subject to sufficient oversight parting Los Angeles for Miami
ease what they see as regula- where lawmakers have been White House hasn’t announced personnel at the bureau, in- by Congress and the White on Aug. 3, 2016. The airline
tory excess, which they say unable to agree on whether to a permanent director for the cluding Brian Johnson, a for- House. A spokeswoman for Ms. confirmed a flight matching
constrains U.S. economic alter the CFPB’s structure or bureau. mer aide to House Financial Warren didn’t respond to a re- Mr. Stone’s screenshot but de-
growth. The Treasury Depart- regulatory powers. Among Mr. Mulvaney’s first Services Committee Chairman quest for comment Monday. clined to say whether Mr.
ment last year released a report Though the House passed a steps after taking over was to Jeb Hensarling (R., Texas), The CFPB’s structure—it is Stone was on board.
calling for financial deregula- broad deregulatory blueprint temporarily freeze the issu- who led the legislative effort led by a single director, rather WikiLeaks didn’t respond to
tion across a number of indus- last summer that would elimi- to diminish the CFPB’s powers. than a commission like other a request to comment. The
tries, part of which are now un- nate the CFPB’s supervisory Over the last few months, financial regulators such as the group has tweeted that Mr. As-
der consideration in Congress and rule-writing functions— the agency has sent out weekly Securities and Exchange Com- sange and Mr. Stone “never
and at federal agencies. reducing it to an enforcement
The new CFPB chief requests for feedback on how mission—has drawn the ire of communicated.”
It isn’t clear that defang- agency—Senate lawmakers ha- once called the agency to transform its operations, in- conservatives and parts of the Special counsel Robert
ing the CFPB would bolster ven’t taken up the plan. cluding its rule- making, en- financial industry since its cre- Mueller’s team has asked
the economy, yet efforts to Instead, the Senate passed a
a ‘ a sick, forcement and supervision. ation, leading to lawsuits chal- about Mr. Stone’s email during
scale back its operations stem more modest rollback of sad kind of way.’ In January, Mr. Mulvaney, lenging how it was set up. testimony before a grand jury,
from a belief that easing the Obama-era financial rules that who also serves as White In a January ruling, the U.S. according to the person famil-
2010 Dodd-Frank financial doesn’t make changes to the House budget chief, asked for Court of Appeals for the Dis- iar with the matter.
overhaul that created the bu- CFPB. Sponsors of that bill, zero funds for the agency’s ac- trict of Columbia Circuit af- During the 2016 campaign,
reau will pave the way for in- which the Senate approved in a ance of new regulations, re- tivities in the second quarter firmed the constitutionality of Mr. Stone indicated that he
creases in investment, spend- 67-31 vote in March, say it view all of its enforcement ac- of fiscal 2018, saying it could the CFPB’s configuration, with was in direct contact with Mr.
ing and hiring. wouldn’t have garnered the tivities and put a pause on draw on reserves. its director who can be re- Assange. He has also said he
Championed by Sen. Eliza- backing from Democrats neces- new hires. Sen. Warren, who helped de- moved by the president only communicated with him, but
beth Warren (D., Mass.), the sary to advance through the The bureau’s mission, as sign the CFPB, last week in a for “inefficiency, neglect of through an intermediary. In a
bureau has been a lightning Senate had it targeted the CFPB. stated on its website, was Wall Street Journal opinion col- duty, or malfeasance in office.” text message with the Journal
rod for critics of the postcrisis The request is the latest in modified to include the goal of umn accused Mr. Mulvaney of In another lawsuit, a CFPB Friday, he said he never com-
legislation since its infancy, a string of moves by Mr. Mul- “regularly identifying and ad- ignoring the bureau’s mission. official appointed by Mr. municated with Mr. Assange.
with GOP lawmakers viewing vaney—who once called the dressing outdated, unneces- “Congress designed the Cordray on his last day in of- Mr. Trump has said there
it as a redundant and overly CFPB a “ a sick, sad sary, or unduly burdensome CFPB to be a nimble watchdog fice said she should be the de- was no coordination between
powerful agency. kind of way”—to weaken the regulations,” a shift that sug- for America’s consumers, ac- fault interim head of the bu- his campaign and the Russians.
Mr. Mulvaney is expected agency he is overseeing in a gested a less combative ap- countable to Congress in the reau until a permanent The Kremlin has denied allega-
to speak more about his pro- temporary capacity. proach with financial compa- execution of its duties,” Ms. director is put in place. tions of election interference.
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The future of wealth since 1818.

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A6 | Tuesday, April 3, 2018 THE WALL STREET JOURNAL.

Sisi’s Allies Seek to Extend His Rule
Egyptian president is achieved much, but I am against
granting him a third,” said law-
re-elected with 97% of maker Elhamy Agina. “I think
the vote, officials say, eight years is enough.”
Others want to extend the
emboldening backers presidency longer than eight
years, possibly by removing
BY JARED MALSIN the current limit of two presi-
AND AMIRA EL FEKKI dential terms altogether.
Supporters of an extension
CAIRO—Egyptian President draw encouragement from a
Abdel Fattah Al Sisi won a global trend of authoritarian
crushing electoral victory, ac- leaders removing obstacles to
cording to official results re- their continued rule. Pro-Sisi
leased Monday. Now, his allies commentators increasingly
are looking for ways to extend point to China, where the gov-
his rule beyond the current ernment recently removed term
two-term limit. limits to allow President Xi Jin-
Some of Mr. Sisi’s supporters ping to remain in power for life.
say keeping him in office would “Let me tell you something,
guarantee stability at a pivotal there’s no bigger country than
moment for the Arab world’s China, and they just changed
most populous nation: The gov- the constitution to give the
ernment is grappling with an Is- president an open term, up to
lamic State insurgency in the Si- life,” television host Imad Ed-

nai Peninsula, and it is trying to din Adib said last week.
breathe life into the economy, For some in Egypt, the pros-
where an estimated one-third of pect of an indefinite presidency
young people are unemployed. draws unfavorable comparisons
Mr. Sisi won the election with past leaders like Hosni
with 97% of the vote, the Na- Mubarak, who ruled for 30
tional Election Authority an- years at the helm of a vast po-
nounced Monday, capping a lice state. Mr. Mubarak engaged
campaign in which every seri- in a delicate balancing act with
ous opponent was either jailed Supporters of President Abdel Fattah Al Sisi celebrate in Cairo after authorities announced his re-election with 97% of the vote on Monday. opposition forces, allowing to-
or removed from contention ken protests and a limited op-
and the only other name on plans to propose a constitu- als, we’re thinking in the com- in 2013 against his freely backed by the government is position in parliament, until he
the ballot was one of the pres- tional amendment in the new ing months, what can we do to elected predecessor, Moham- likely to pass. was brought down in the 2011
ident’s backers. legislative session, which make this a public issue?” said med Morsi. A spokesman for However, a parliamentary Arab Spring revolution.
Allies of Mr. Sisi say they opened Monday, to extend the Mohamed Anwar Sadat, a for- the president didn’t respond debate on the issue would give “It doesn’t sit well with a

plan to press for a change in presidential term from four to mer member of parliament who to a request to comment. an otherwise fractured opposi- lot of people. Even some of the

the constitution that would al- six years. “Developing countries shares a name with his late un- A proposal to change the tion a rare opportunity to most quisling types are going
low the former general to stay need more time to implement cle, Egypt’s former president. constitution would have to go openly challenge Mr. Sisi. to be uncomfortable with the
in power beyond the current their plans,” he said. Mr. Sisi has said he doesn’t through parliament and then Even three pro-Sisi lawmak- fact that here we are with an-
eight-year limit. Opposition leaders say they on want to remain in power be- be approved in a referendum. ers said they would oppose at- other president for life,” said
“The constitution is not a sa- will fight such a move. yond two terms. He had also Only a dozen of the nearly 600 tempts to keep the president in Michael Hanna, an Egypt ex-
cred text,” said lawmaker Ismail “We, as some of the opposi- said he wouldn’t seek the legislators are members of the power longer than two four- pert at the Century Founda-
Nasreddin, a Sisi backer who tion, political figures, intellectu- presidency after he led a coup opposition, so any measure year terms. “I do think Sisi has tion, a think tank in New York.
us l,

Syria Town’s Evacuation Marks a Regime Win Trump

al a

ci on

BY SUNE ENGEL RASMUSSEN moderate rebel factions.

Meanwhile, there are sev-

Civilians and fighters began Douma eral smaller rebel-held enclaves

leaving the last rebel strong-
hold near Damascus on Mon-
surrounded by government
forces in the country, which
Idea of
er rs

day, marking a major victory the regime could target before
for the Assad regime in its re-
lentless assault to secure the
Damascus GH OUTA
potentially moving on Idlib.
The regime began its as-
Putin Visit
Syrian capital after a years- sault on Eastern Ghouta in BY THOMAS GROVE
m e

long war. February, following a years-

The first buses with fight- long siege that deprived some MOSCOW—President Don-
ers and their families departed SYRIA 400,000 residents of food and ald Trump recently raised the
m rp

Douma, the biggest town in 3 miles Damascus medical supplies. According to idea of inviting his Russian
the Eastern Ghouta suburb, for the Syrian Observatory for Hu- counterpart, Vladimir Putin, to
3 km
northern Syria after the rebels man Rights, a monitoring the White House, the Kremlin
there struck a deal with the group, 1,644 civilians have said Monday, putting the rela-
government, according to local A regime fighter stood Monday in a tunnel in Eastern Ghouta. THE WALL STREET JOURNAL. been killed by the regime of- tionship between the two
co Fo

activists. fensive since Feb. 18. leaders front and center amid
They join tens of thousands areas farther from Damascus The three countries are the inces ostensibly protected under Though the regime an- worsening ties between their
of Syrians who have left Gh- will be more complicated. main guarantors of so-called cease-fire deals among foreign nounced a complete capture of governments.
outa’s battered towns in the “The fall of East Ghouta is de-escalation zones in Syria, powers, the regime in recent Ghouta over the weekend, The suggestion, which came
past week under evacuation another step towards Assad’s including areas that have been weeks targeted civilian infra- Douma had held out as other in a March 20 telephone call,
deals between rebel groups, consolidation of control in bombarded, such as Ghouta. structure, including hospitals. towns and cities were emptied followed Mr. Putin’s victory in
the regime and its Russian Syria’s center,” said Sam Hel- The Syrian regime, accord- But Idlib, in particular, of its residents. a presidential election and
supporters. It wasn’t immedi- ler, a Beirut-based senior ana- ing to state media, has said presents an explosive chal- The rebel group in Douma, the poisoning by nerve agent
ately clear how many of lyst with the International Cri- the assault on Ghouta is part lenge for several parties in- called Jaish al-Islam, couldn’t of a former Russian spy in the
Douma’s estimated 100,000 sis Group. “But the areas still of an operation to root out volved in the war. The prov- be reached to comment. Jaish U.K., an attack that prompted
residents have agreed to leave. beyond his grasp on the coun- terrorists who reject national ince houses an intractable al-Islam fighters leaving Douma broad condemnation, including
The capture of Ghouta after a try’s edges are caught up in reconciliation. patchwork of rebel fighters vy- were headed for Jarablus in from the U.S., after the British
six-week ground and air opera- complicated regional and in- Mr. Assad has given his own ing for turf, most of which is rebel-held northeast Syria, government blamed the attack
tion is the most significant win ternational politics,” he said. indications of what comes next. under the control of an ex- state media and independent on Russia. Russia has denied it

for the government since it “It’s not clear how exactly Even as the assault on Eastern tremist, former al Qaeda fac- activists said. was involved.
seized Aleppo in 2016. It now Assad can retake them.” Ghouta was under way, govern- tion, Hayat Tahrir al-Sham. The details of the deal with The White House confirmed
controls nearly all of the area The fall of Ghouta comes ment forces carried out air- The chaotic situation in Jaish al-Islam were unclear, but a potential meeting was dis-
around the Syrian capital. Presi- days before a trilateral summit strikes on two other rebel-held Idlib has been further exacer- the Observatory said the rebels cussed, with the White House

dent Bashar al-Assad and his al- in Ankara where Mr. Assad’s strongholds—signaling where bated by the recent arrivals of had committed to releasing mentioned as a possible venue
lies are expected to turn to main backers, Iran and Russia, the regime would focus as it fighters evacuated from Gh- prisoners and hostages after for it.
other remaining opposition-held are set to meet Turkey in talks seeks to reassert control over outa. A large-scale regime as- the evacuation was complete. “When our presidents spoke
areas in the country at a time that will seek to decide a fu- much of the country. sault on the province is also —Nazih Osseiran on the telephone, Trump sug-
when attempts at peace talks ture path for the seven-year In Idlib in the northwest and complicated by the presence and Nour Al Akraa gested that the first meeting
have stalled. However, capturing Syrian war. Daraa in the south, both prov- of Turkish forces who support contributed to this article. take place in Washington, in
the White House,” Kremlin for-

eign-policy adviser Yuri Usha-

Migration Issue Faces Test in Hungary kov told Russian news agencies
Monday. “It’s a sufficiently in-
teresting and positive idea,” he
said. The two leaders hadn’t
BY DREW HINSHAW all of Mr. Orban’s chief rivals He is locked in a high-pro- agreed on a date for any poten-
Marcos Son Could AND CSABA SEGESVÁRI Border Boredom endorse his positions on immi- file dispute with the European tial meeting, he said.
Get Post in Recount The flow of migrants into Europe gration, and the number of il- Union over his refusal to take Mr. Ushakov’s comments
H O D M E Z OVASA R H E LY, is subsiding, reducing the issue's legal crossings of Hungary’s in refugees. represent the latest effort by
Philippine officials began re- Hungary—Hungary goes to the political relevancy in transit fenced-off border now hovers His campaign benefits from the Kremlin to present itself
counting ballots cast in a 2016 polls this weekend for national countries like Hungary. around the single digits. wider forces. The economy has as ready for engagement with
vice-presidential election, a move elections that appear likely to A recent local election in boomed since Mr. Orban came Mr. Trump, who has defended
that the son of former dictator return Prime Minister Viktor People arriving by sea the town of Hodmezovasarhely to power in 2010, averaging the idea of improving ties with
Ferdinand Marcos hopes could Orban, one of Europe’s leading each month rang what Mr. Orban himself 3% growth since 2013, thanks Moscow. The Kremlin blames
return his family to power. anti-migration voices, to office 250 thousand called “an alarm bell.” His in part to bounteous EU aid. Washington’s political estab-
The recount gives Ferdinand for a fourth term. party blanketed the rural Big public-works programs lishment rather than Mr.
Marcos Jr. another shot at presi- Mr. Orban has campaigned 200 town, which his party won have helped bring unemploy- Trump for thwarting dialogue
dential succession, 32 years after with pledges to maintain a four years ago by 44 percent- ment down to 3.8%. between the two countries.
his father, Ferdinand Marcos, was vigorous defense of Hungary’s, 150 age points, with billboards, Mr. Orban’s own government At the time of the call, Mr.
ousted in the 1986 People’s Power and Europe’s, borders and cul- proclaiming of his opponents: drew the current voting lines Trump said he congratulated
Revolution. The younger Mr. Mar- ture against an influx of peo- 100
“They will remove the fence.” and his opposition is divided Mr. Putin on his election win
cos, known as “Bongbong,” seeks ple from the Middle East and The message fell flat with among 23 parties, some facing and described the conversa-
to unseat Vice President Leni Ro- Africa, and the vote will be a pensioner Zoltanne Egressy, past corruption scandals. tion as a “very good call” in
bredo, who was elected separately test of the continued political among the 58% of voters who Still, allegations of corrup- which the two discussed meet-
from President Rodrigo Duterte. potency of that message as backed the opposition in the tion have begun to over- ing to address issues such as
—Jake Maxwell Watts migrant flows start to ebb. 0 town in February, delivering a shadow immigration as the the conflicts in Ukraine and
Recent polls tend to show 2015 ’16 ’17 ’18 shock 16-percentage-point de- campaign issue facing the Syria and the threat posed by
COSTA RICA Mr. Orban’s Fidesz party win- Source: United Nations High Commissioner feat. prime minister. The EU’s anti- North Korea. Mr. Trump was
ning the support of roughly for Refugees “I am tired of this topic,” fraud office has recommended criticized by some in Washing-
Ruling Party Wins half of the electorate, with the THE WALL STREET JOURNAL. Mr. Egressy said. “There is no- that Hungary’s top authorities ton for the call.
rest divided among a handful of body at the border!” take legal action over “serious Since the call, ties between
Voters gave an upset landslide opposition parties. That would chief strategist to President For years, Mr. Orban has irregularities” in projects car- Moscow and Washington have
victory to the ruling party, reject- mean less of a grip on parlia- Donald Trump, recently called pitched himself as the guardian ried out by a company once worsened over the poisoning
ing a conservative evangelical can- ment than the commanding Mr. Orban “the most significant of Europe, keeping out a flood controlled by Mr. Orban’s son- of Sergei Skripal and his
didate who campaigned against two-thirds majority he enjoyed guy on the scene right now.” of Muslims. Three years ago, as in-law. daughter, Yulia, in the English
same-sex marriage. Carlos Alvar- for four of the past eight years. But his focus on immigra- thousands of migrants and refu- Mr. Orban’s office says the city of Salisbury. The U.S. and
ado Quesada, who served as labor The prime minister’s stance tion seems to be bringing di- gees from Africa and the Middle government looked into the at least a dozen allied and
minister in the current center-left on immigration has made him minishing returns at home, East passed through Hungary contracts and found no wrong- Western countries have ex-
administration, beat Fabricio Alva- something of a hero to an in- where border politics are no farther into Europe, he fenced doing. Mr. Orban’s son-in-law pelled Russian diplomats in re-
rado Muñoz, a former preacher. ternational network of nation- longer a major subject of do- the country’s southern border couldn’t be reached to com- sponse to the attack, and Rus-
—José de Córdoba alists. Steve Bannon, former mestic disagreement. Nearly and installed infrared cameras. ment. sia has responded in kind.
For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or

THE WALL STREET JOURNAL. NY Tuesday, April 3, 2018 | A7


Stalwart Dies
BY ALEXANDRA WEXLER a televised address, visibly
shaken. “She remained
JOHANNESBURG—Winnie throughout her life a tireless
Madikizela-Mandela, who like advocate for the dispossessed
her former spouse, Nelson and the marginalized. She was
Mandela, endured prison and the voice for the voiceless.”
personal sacrifices for black Ms. Madikizela-Mandela
freedom, but became a divi- won global recognition for her
sive figure in a democratic struggle on behalf of the anti-
South Africa, died Monday. apartheid movement, as well
She was 81 years old. as unwanted scrutiny over
The second how she resisted white minor-
OBITUARY wife of Mr. ity rule.
WINNIE Mandela, During the Truth and Rec-
MANDELA South Africa’s onciliation Commission hear-

1936-2018 first black ings, which hastened the end

president, was of racial conflict by granting
the public face of the fight amnesty in return for testi-
against white-minority rule mony about crimes committed
during her husband’s 27-year under apartheid, Ms. Madiki-
political imprisonment. As the zela-Mandela was found to
attention of much of the anti- have assaulted multiple vic-
apartheid movement focused tims and been involved in mul-
on Mr. Mandela’s plight in tiple deaths.
Security forces participated in a civil-defense drill in Seoul in 2017. A think-tank study has identified inadequacies in preparedness. prison, Ms. Madikizela-Man- She was born Sept. 26,

Seoul’s Civil Defense Strains

dela was herself subjected to 1936, in Bizana, a town in Pon-
police harassment, abuse and doland—now part of South Af-
long periods in jail. rica’s Eastern Cape province—
The Mandela family con- and had the rare privilege of
firmed that Ms. Madikizela- attending school. She earned a
Mandela died in the early degree in social work and
BY ANDREW JEONG found that the country lacks North’s willingness to give up chemical attack. hours of Monday in a Johan- worked in a Johannesburg
adequate emergency shelters its nuclear arsenal. South and Defense and Interior Minis- nesburg hospital. Despite hospital.
SEOUL—In 2010, North Ko- as well as equipment, such as North Korea failed to agree try officials said they couldn’t health issues in recent years, She and Mr. Mandela mar-
rea unleashed a surprise artil- gas masks. on whether it would be dis- discuss specifics of the contin- she remained active in South ried in 1958. He divorced her
lery attack on a South Korean “There is a massive, gaping cussed at the summit this gency plans. African politics and the Afri- in 1996, though she continued
island. Within an hour, four hole in the country’s civil pre- month. The U.S. Congressional Re- can National Congress until to be a presence in his life up
people were dead. Hundreds of paredness,” said James Kim, a On Sunday, South Korea search Service estimates that her final days. to his death in 2013. Mr. Man-
panicked residents jammed research fellow at Asan and and the U.S. began annual mil- 30,000 to 300,000 South Ko- “She never doubted that dela had chastised himself for

shelters lacking adequate food, one of the report’s authors. itary exercises that will test reans would perish in the the struggle for freedom and being absent for much of their

water and heat. “It’s going to take years to fully Pyongyang’s commitment to first days of a conventional democracy would triumph and marriage, leaving Ms. Madiki-
Those shortcomings spurred fix the situation.” war with the North. Casual- succeed,” South African Presi- zela-Mandela to raise their
a government-led campaign to Among other things, Mr. ties from a nuclear exchange dent Cyril Ramaphosa said in daughters.
boost preparedness. But the Kim and his co-authors wrote, would be much higher. Even a
Urban population
size of South Korea’s urban
population and its proximity to
many shelters in Seoul lack
doors that are able to protect
on density, proximity to
handful of warheads could
spread radiation across the
the front lines of any conflict evacuees from the blast and peninsula, the estimates say.
make civil defense inherently radioactive fallout of a nuclear
front lines make civil Civil-defense drills, in
us l,

difficult. explosion. defense problematic. which residents practice evac-

Seoul and its metropolitan The warning came before uating to bomb shelters sev-
al a
area are home to about half of scheduled separate meetings eral times a year, began in the
the country’s 50 million peo- between North Korean leader 1970s. But Mr. Jeong said
ple—and easily in range of Kim Jong Un and South Ko- the talks. North Korea has said many people have become too
ci on

North Korean artillery and rean President Moon Jae-in in the past it sees the exer- used to the exercises—and no
missiles. North Korea has and Mr. Kim and U.S. Presi- cises as a prelude to invasion. longer participate.

warned that if fighting erupts, dent Donald Trump. Mr. Jeong Han-yul, an Interior Lee Sang-un, an office
it will turn the city into a “sea Moon’s meeting is set for Ministry official who oversees worker in Seoul, said she
of fire.” April 27, while Mr. Trump has emergency civil-evacuation didn’t know where to go
er rs

A study by the Asan Insti- said he would meet Mr. Kim plans, said South Korea isn’t should bombs start to fall. She
tute for Policy Studies in by May. “completely prepared for” a doubted that preparation
Seoul, published Monday, Doubts persist about the North Korean nuclear or bio- would make any difference. Winnie Madikizela-Mandela as a pallbearer in South Africa, 1986.
m e

m rp

co Fo

In Nigeria


MAIDUGURI, Nigeria—Boko
Haram insurgents launched
coordinated assaults on a Ni-
Central Americans in Ixtepec, Mexico, under way to the U.S. border. gerian military base and vil-
lages close to this regional

‘Caravan’ in Mexico capital on Monday, a brazen


operation that left at least 20

people dead just weeks after
the government confirmed it

Raises Trump’s Ire was in talks with a breakaway


faction of the extremist group.

The dawn raids—which saw
insurgents deploy suicide
BY JOSÉ DE CÓRDOBA gration system was out of con- bombers, mortars and truck-

AND ROBBIE WHELAN trol and urging Congress to mounted machine guns—
pass tougher immigration and sparked a protracted battle
MEXICO CITY—An orga- border laws. with Nigerian soldiers at a
nized protest march of about Mr. Trump blamed Demo- military base on the edge of
1,000 Central American mi- crats for failing to pass legis- Maiduguri, an army spokes-

grants slowly traveling lation protecting young undoc- man said. Local officials said
through Mexico toward the umented immigrants who the jihadists were attempting
U.S. border has become a hot- came to the U.S. as children, to infiltrate the city.
button political issue in Wash- while also declaring his own The attack left at least 20
ington, straining bilateral rela- opposition to such a deal. people dead and 63 injured,
tions with Mexico. Mexican Foreign Minister according to Kashim Shettima,
The march is an annual Luis Videgaray responded to the governor of Borno State.
event that organizers say aims Mr. Trump’s comment Sunday The operation came after
to raise awareness about the with a tweet denying that his Nigeria’s government revealed
tens of thousands of Central government was doing noth- it was in peace talks with a
Americans who, facing gang ing to control migration. Boko Haram breakaway faction
violence and political unrest in “Every day Mexico and the allied with the Islamic State
one of the world’s most vio- U.S. work together on migra- terror group and led by a mys-
lent areas, flee every year to tion throughout the region,” terious young commander
Mexico or the U.S. Many are he said. called Abu Musab al-Barnawi.
turned back, extorted or kid- On Monday Kirstjen Nielsen, No group claimed responsi-
napped along the way. the secretary of homeland se- bility for Monday’s attack, but UNRIVALED ACCESS,
As in past years, the march- curity, tweeted: “Working with analysts said it was likely to
ers intend to lodge asylum Mexican officials to address be a rival Boko Haram faction UNPARALLELED SERVICE
claims with the U.S., organizers the yearly illegal alien caravan. operating around Maiduguri.
said. This time around, how- Exploring all options.” That faction, led by Abubakr
ever, the caravan caught the at- Most of the marchers are Shekau, has dramatically ex- LEGENDS SUITE • LEGENDS PREMIER
tention of President Donald Hondurans fleeing crime and panded suicide bombings
Trump, who took to Twitter to persecution at home, said Jo- against soft targets in the past CHAMPIONS SUITE • DELTA SKY360˚ SUITE
blast it shortly after a news sael Romero, a Salvadoran ac- year. More than 90% of the FORD FIELD MVP CLUB SEATS • JIM BEAM SUITE
story aired on Fox News. tivist traveling with them. He bombers are young girls, ac-
“Mexico is doing very little, said Pueblo sin Fronteras (Peo- cording to the United Nations.
if not NOTHING, at stopping ple Without Frontiers), the ad- The strikes spotlight the
people from flowing into Mex- vocacy group that organizes challenges of negotiating with FOR MORE INFORMATION ON
ico through their Southern the march, has mounted doz- one wing of a decadelong in- PREMIUM SEASON TICKETS
Border, and then into the U.S. ens of treks through Mexico in surgency that has left more
They laugh at our dumb immi- the last 15 years. than 20,000 people dead. (718) 508-3955
gration laws. They must stop Most migrants in past “The attack buttresses PREMIUM@YANKEES.COM
the big drug and people flows, groups have succeeded in en- questions regarding the scope,
or I will stop their cash cow, tering the U.S. and petitioning credibility and prospects of WWW.YANKEES.COM/PREMIUM
NAFTA. NEED WALL!” the government for asylum, the negotiations,” said Nna-
On Monday, Mr. Trump Mr. Romero said, adding that madi Obasi, with the Interna-
cited the “caravan” on Twitter many of those applications tional Crisis Group, a conflict
again, saying the U.S. immi- were still being processed. resolution think tank.
For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or

A8 | Tuesday, April 3, 2018 THE WALL STREET JOURNAL.


INVEST Push to Private

Private capital markets more
than doubled in the past decade,
don’t know the size of the
market or what’s going on in
it,” she said.
Even when companies dis-
Continued from Page One surpassing growth seen in public close private placements, the
ties filings and data provider stock and bond offerings. very limited information
Dealogic. Deals known as pri- leaves most in the dark.
vate placements, the largest Capital raised by Telegram is a good exam-
chunk of the private markets, U.S. companies ple. It has said nothing about
raised at least $1.6 trillion for $3.0 t. rillion the fundraising for its planned
businesses last year, according new digital network and bank-
to the Journal’s analysis of Private market ing system. It isn’t even clear
more than 40,000 filings. who owns the company. The
The private markets are website says Telegram is
fueled both by companies ea- 2.0 “supported” by Russian broth-
ger to raise money without ers Pavel Durov and Nikolai
the regulatory burdens of go- 1.5 Durov, who were named as
ing public and by investors Public market Telegram executives in the
looking for new ways to score 1.0 SEC filing for the $850 million
large payouts outside of the funding.
stock and bond markets. 0.5
The boom in such private
dealings unquestionably helps 2010 ’12 ’14 ’16 ‘Decline to disclose’
some businesses grow. Private Sources: Dealogic; Wall Street Journal In its filing, the company,
analysis of Securities and Exchange
capital can encourage innova- Commission filings
which has a widely used mes-
tion by enabling companies to THE WALL STREET JOURNAL. saging app, reported revenue
take risks without reporting as “decline to disclose.” It
the immediate impact on prof- The Universe of Private Markets provided only one contact, a

its. That is one reason private law firm on the offshore fi-
markets have been important Private equity and debt markets total more than $2.4 nancial center of Tortola in
to Silicon Valley. trillion, exceeding public stock and bond markets. the British Virgin Islands.
“It’s fueling entrepreneur- Telegram’s app offers en-
ship,” because “companies Amount raised in 2017 crypted chats out of reach of
have lots of options to access law enforcement and it has
capital,” said Jacqueline Kel- Private placements been banned in some places
ley, head of the Americas IPO $1.65 trillion Equity and debt offerings, sold mostly to amid controversy over use by
Markets practice at account- relatively well-off ‘accredited’ investors. terrorists or others trying to
ing firm Ernst & Young LLC. evade government surveil-
Debt sales to big investors The Telegram sale illus-
Fewer stocks Debts can be sold using what’s known trates a risk in private mar-
As private capital in- as the Rule 144A exemption to ‘qualified kets. The prices of company
creases, public markets are institutional buyers’—investors with shares listed on stock ex-
shrinking: The number of pub- typically at least $100 million in assets changes are displayed. Owners
lic companies has fallen by under management. can generally count on finding
more than half since 1996. a buyer at some price if they
This concerns some regulators $6.5 billion want out, whereas investors

and challenges some of the who become part owners of a

fundamentals of corporate Initial coin offerings business via a private deal
governance. “There are fewer Sales of cryptocurrencies and tokens to have no such guarantee.
investment opportunities for raise money for products and services Shares issued in private
Main Street investors,” Secu- (not an investment in the issuer). Some
on placements also are generally
rities and Exchange Commis- $782 billion are done as private placements. “restricted,” meaning they
sion Chairman Jay Clayton usually can’t be resold for at
told a congressional panel last $35 million least six months to a year.
year. Telegram has said it would
us l,

Securities crowdfunding*
Companies issuing stock refund investors’ money if its
and debt publicly must regis- The JOBS Act of 2012 allows offerings new digital network doesn’t
al a

of up to about $1 million a year per

ter with the SEC and provide launch by October 2019, ac-
intimate financial details. Reg- issuer, sold mainly to smaller investors. cording to documents re-
ulators require little—in some Telegram, co-founded by Pavel Durov, right at bottom, is among viewed by the Journal.
ci on

*Crowdfunding total represents amount offered

cases no—disclosure in pri- Sources: Dealogic; Wall Street Journal analysis of SEC filings; Token Report firms accessing the private capital markets, a trend about which The same documents warn
vate fundraising. THE WALL STREET JOURNAL. SEC Chairman Jay Clay has expressed reservations. there “can be no assurance” of
Investment in private fund- enough money left over to pay
raisings is often restricted to largest initial public offering over the period, according to 2015 SEC report. Regulators affect the wider economy. any such refunds.
institutions such as pension, of stock last year, by tech FactSet. say the rules are there to pro- The Journal looked at the Telegram has delivered
er rs

sovereign-wealth and hedge company Snap Inc., raised In more recent times, Face- tect people, including from single biggest private market, early paper profits to inves-
funds, Wall Street firms and $3.9 billion, according to Dea- book waited till it was eight swindlers. a type of private placement tors. Though its planned digi-
insurance companies. In some logic. years old before going public, At an SEC conference last known as Regulation D, which tal coins have yet to be issued,
cases, relatively affluent indi- All the money looking for and its 2012 IPO share price year, Michael Piwowar, a com- can be gauged because those the price to get in on them
m e

viduals can get in. This means the next shiny investment valued it at $104 billion. Ordi- missioner, questioned “the no- doing these deals file forms has shot up from 38 cents for
smaller investors are unable helps explain the rise of the nary investors, without the tion that nonaccredited inves- with the SEC. Regulation D of- each digital coin based on the
to get a piece of the stupen- Silicon Valley phenomenon of ability to invest in Facebook tors are truly protected by ferings totaled at least $1.6 first round of private funding
m rp

dous early growth of some unicorns—private companies while it was still private, were regulations that prevent them trillion last year, the Journal completed in February to an
startups. that are valued at $1 billion or left out of its early growth. from investing in high-risk, found, more than triple the expected average $1.33 in the
The typical number of in- more by venture-capital firms. Uber remains private nine high-return securities avail- amount in 2009. second round that began in
vestors in private placements The number of U.S. unicorns years after its launch. By the able only to the Davos jet set.” Other private placements late February, according to
last year was eight, according tripled over four years, to 105 most recent available valua- require no disclosure at all, documents reviewed by the
co Fo

to the Journal’s analysis. in February from 31 in 2014, tion, in June 2016, Uber had said Anna Pinedo, a partner at Journal.
The world of private capital according to a Journal grown to be worth $68 billion, Private credit law firm Mayer Brown. “It’s Charles Noyes, an analyst
markets includes companies tracker. also without Main Street. One of the private markets’ impossible to know who’s at Pantera Capital, a crypto
of all sizes, from small oil-well Securities laws keep ordi- Uber’s most prominent in- fastest-growing sectors is pri- raising money this way or hedge fund, called the techni-
operators to agribusiness gi- nary investors out of these vestors, according to Dow vate credit. Information on from whom.” cal plans published for the
ant Cargill Inc. that raise eq- high-growth markets, forcing Jones VentureSource. are a how much is being lent, to new network “completely un-
uity and float debt with a few the “little guy” to stick with a typical private-markets mix: whom and by whom is sparse. proven.” In a post on Medium,
investors. Besides those pri- stock market that Elizabeth de venture-capital firms, Wall One indicator of this market’s he said he “would not put a
vate placements, companies Fontenay, a law professor at Street backers such as Black- growth is the increase in as-
When fast-expanding single cent I care more than
sell debt privately to big in- Duke University, describes as Rock Inc. and Goldman Sachs sets of funds set up for such firms remain private, nil about losing into this.”
vestors such as banks in what becoming a “holding pen for Group Inc., and governments confidential lending. These Steve Strongin, head of
are called 144A deals. massive, sleepy corporations.” such as Saudi Arabia and Qa- more than quadrupled over a
small investors can’t global investment research at
Last year saw many multi- tar via sovereign-wealth decade to $722.8 billion by get in on the growth. Goldman Sachs, wrote in a
billion-dollar initial offerings funds. the end of 2017, according to February note that while few

in the private space that far The early growth SEC rules dictate that some data from private-market ad- of the many cryptocurrencies
outstripped initial public Contrast this with two de- private offerings be sold only visory and investment firm issued so far are likely to last
stock offerings. At least 20 cades ago, when public mar- to banks and institutional in- Hamilton Lane Inc. Private placements aren’t in the long term, “just be-
private placements, mostly by kets ruled. Inc. vestors. Others can be sold to The fast-growing market seen as inherently dangerous cause we are in a speculative

funds, raised more $4 billion went public as a three-year- those firms plus “accredited” has made it easier for smaller to the wider economy. Still, bubble does not mean current
each, the Journal’s analysis old startup valued at $660 individuals, meaning those and medium-size companies said Ms. de Fontenay, the prices can’t increase for a
found. million. Stock investors who with more than either a to get loans. But the risk of Duke law professor, the fact handful of survivors.”
That included $93 billion bought shares in the public $200,000 net income or a net bad loans has moved beyond that some areas of the private Telegram didn’t respond to
raised by the Japanese con- offering in 1997 and held on worth of $1 million, excluding tightly watched banks into a markets are “effectively black requests for comment.
glomerate SoftBank Group have made returns of homes. This test leaves out largely unpoliced market, rais- holes” makes it impossible to —Miriam Gottfried and
Corp. for a technology invest- 96,389%, dwarfing the 364% about nine-tenths of U.S. ing questions about whether assess overall risks accurately. Maureen Farrell contributed
ment fund. By contrast, the total return of the S&P 500 households, according to a defaults in a downturn could “It’s a concern if regulators to this article.

FAKE She had to admit that she had

never actually been there.
Mike Denison, a British se-
curity analyst, once received a
made up a postal address, lied
about a name or selected the
wrong gender.
Dating sites including Tinder
tweaking the recovery website
address to leapfrog the birthday
question. His post explaining
the process is one of the most
Continued from Page One wedding invitation addressed and Hinge import data from popular on his gaming site.
sees a lot of ads for slippers. to “Mike Denisaurus”—a Face- Facebook to fill in profiles, and All the lying does seem to
“They won’t find out any- book pseudonym he chose false information could lead to foil advertisers. It is “a much
thing very useful about me,” years ago when he was a uni- mismatches. Mark “Jaymo” bigger problem than people are
says Ms. Wellens, the co- versity teaching assistant try- James, a television security con- aware of,” says Nick Baker, di-
founder and chief executive of ing to avoid friend requests sultant, says he gives a fake rector of research and consult-
California-based computer net- from students. birth date to Facebook, which ing of U.K. market research
working company IWL. After Pernille Tranberg, a journal- then means dating apps show company Verve, which con-

news of the Facebook incident, ist and digital privacy consul- him as 10 years younger. That ducted a 2015 survey showing a
“that was my first thought. If tant in Denmark, says a friend may put him on dates with large amount of fake informa-
my data has been breached, I’ve of hers once mistakenly called younger women—but he says he tion. Incorrect birth years, he
now polluted another database.” her by her Facebook pseudo- doesn’t mind. says, are particularly nefarious
Facebook says “authenticity” nym, Pia, in person. They Websites often use personal because advertisers are often
is key to the social network and laughed it off, but Ms. Tranberg details to verify identity when a trying to match up habits or
rigorously policed, and that says it was clear the friend had Pernille Tranberg uses a different name on Facebook. user forgets a password. If you buying patterns with a specific
false information violates the completely forgotten the moni- can’t remember the false phone age group.
terms of service agreement. ker wasn’t her real name. He even misspells his name searched for him in their sys- number you gave or the But some companies that
“Each day, we block millions of Many also intentionally pro- when reserving airplane tickets tems, they found little to no in- mother’s maiden name you provide data to marketers say
fake accounts at registration,” vide false information to other and says it has never created a formation. “There’s a small feel- made up, you could be out of they are depending less and less
says a Facebook Inc. spokes- companies that keep personal problem going through security. ing of satisfaction,” he says. luck. on biographical information.
woman—who declined to be data, from the cable company to As technology has advanced A recent survey of U.S., Dan Hastings, a software en- Preethy Vaidyanathan, the chief
named. “Our systems examine their grocery delivery service to he has had to up his game. “Be- French, German, Italian and gineer in Ireland, says he almost product officer of New York-
thousands of account attributes ticket vendors. fore, more often you’d be able to British consumers found that lost a decade of gaming history based marketing technology
and focus on detecting behav- Computer engineer Ryan type in nonsense,” he says. Now 41% had intentionally falsified and thousands of euros of pur- company Tapad, says they track
iors that are very difficult for Barrett fills in online forms with online systems have more so- personal information when sign- chases when he was locked out much more valuable informa-
bad actors to fake, including 0000s whenever a number is re- phisticated checks. ing up for products and services of the Sony PlayStation Network tion from phone and web
their connections to others on quired and uses dashes for He says he has friends who online. Most common was pro- after forgetting his fake birth browser use.
our platform.” words. He says it is mostly out work at companies that look at viding a fake phone number, ac- date. Mr. Hastings called cus- Still, Ms. Vaidyanathan sees
The online fibs can create of principle: he wants to be in multiple services to link up and cording to the survey conducted tomer service, to no avail. the value in hiding identity on-
awkward moments. Ms. Wellens control of his information. Also, cross-reference data on individ- over December and January by “Ten years of my business to line. She says she uses a second
remembers the time a distant it’s fun to try to fool the market- uals—data gleaned from mobile RSA Security LLC, a maker of them and they weren’t even email address with a fake name
relative reached out to share ers. He has used a dozen differ- phones, social media, grocery digital security products. Re- willing to listen to my com- that she gives out to companies
reminiscences about her sup- ent spellings for John Doe store loyalty cards and spondents also said they have plaints,” he says. Then Mr. Has- she doesn’t want to bombard
posed hometown of Naples, Fla. rather than entering his name. more. When those friends provided a false birth date, tings discovered a loophole— her inbox.
For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or

THE WALL STREET JOURNAL. * * NY Tuesday, April 3, 2018 | A8A


Cuomo Rival Hits the Trail


Molinaro urges civility with ideas not ideology.” Mr. Molinaro has enough en- Dutchess County with a single
In a year when Democrats dorsements from party chair- mom on food stamps, in cir-
and compromise as he are energized to wrest back persons to give him front-run- cumstances that gave him a
seeks GOP nomination the U.S. House and put checks ner status for the nomination sense of the “importance that
on Republican President Don- at the party’s May convention. government plays,” he said in
in the governor’s race ald Trump, they have shrugged Democrats from Mr. Molin- an interview.
off Mr. Molinaro’s threat. Dem- aro’s area Monday were skepti- He began his political ca-
BY MIKE VILENSKY ocrats have a roughly 2-to-1 cal of his inclusive campaign reer at 18 when he was elected
registration advantage in New image. “He says what he needs mayor of Tivoli. His status as
In his first campaign speech York and Republicans haven’t to in order to be popular, but America’s teenage mayor
Monday, Republican guberna- won a governor’s race since don’t be fooled,” said Elisa brought national attention—
torial candidate Marcus Molin- George Pataki’s last campaign. Sumner, chairwoman of the and ambition. “In my heart of Marcus Molinaro is considered the front-runner in the GOP primary.
aro sought to position himself In a March Siena College Dutchess County Democrats. hearts I want to be president,”
as a nonpartisan problem- poll, 57% of voters backed Gov. She pointed to his past he told CBS News in a 1995 driving down costs without cord, including raising the min-
solver who would bring civil- Andrew Cuomo and 29% sup- votes opposing same-sex mar- segment about him. “I think I cutting services, pointing to imum wage, reining in state
ity to Albany after years of ported Mr. Molinaro. riage, against prohibiting gen- could be.” shrinking the county work- spending, and banning fracking.
rough-and-tumble politics. Mr. Molinaro first faces a der-identity discrimination, Mr. Molinaro was elected to force and lowering property Mr. Molinaro said he wrote
“One-upmanship, scapegoat- Republican primary against and against allowing unmar- the state Assembly in 2007 taxes. in Mr. Gibson’s name for presi-
ing, yelling louder and tweet- Syracuse Sen. John DeFran- ried partners to adopt. “In and became Dutchess County Chris Gibson, a former up- dent in 2016, citing “differ-
ing meaner has replaced coop- cisco and former Pataki aide what way does that represent executive in 2012. He was re- state congressman advising ences” with Mr. Trump, but on
eration, quiet conversation and Joseph Holland. Mr. Cuomo is someone who’s even a moder- elected in 2015 with more than Mr. Molinaro’s campaign, de- Monday Mr. Cuomo began try-
compromise,” Mr. Molinaro running against Cynthia Nixon ate Republican?” she asked. 60% of the vote, even as the scribed him as “the polar op- ing to tie him to the president.
said in the village of Tivoli. “I in a Democratic primary. Mr. Molinaro, a 42-year-old area gained a Democratic reg- posite of Andrew Cuomo.” “Good luck,” the governor
ask you today to believe again After three months of dis- father of three, was born in istration advantage. Mr. Cuomo’s supporters said said. “No one is going to vote
we can solve our problems cussions with party leaders, Yonkers and grew up in He said he has focused on the governor will run on his re- for a Trump clone.”

Spring Snowstorm Postpones Yankees’ Home Opener

Lawmaker Won’t
Seek Re-Election
BY KATE KING Esty’s staff, dozens of times in

one night and leaving her a voice

Connecticut Rep. Elizabeth mail in which he threatened to
Esty won’t run for a fourth term kill her if she didn’t answer him.
in November, saying she mis- Ms. Esty has been criticized
on handled a 2016 probe into alle- for her handling of the situa-
gations that her former chief of tion, which was first reported
staff harassed a colleague. by the Connecticut Post. In a
Ms. Esty, 58 years old, on statement, the congresswoman
Monday apologized for what said she addressed the “imme-
us l,

she said were mistakes in her diate crisis” by demanding Mr.

response to misconduct by her Baker enter counseling and
al a
ex-chief of staff, Tony Baker. She launching an internal review.
said she would use her remain- Mr. Baker remained on staff,
ing time in office to advocate however, for about three more
ci on

for stronger protections for em- months and received a $5,000

ployees. “Too many women severance payment.
have been harmed by harass- The Congresswoman pro-
ment in the workplace,” she said vided a reference for Mr. Baker
in a statement. “I could have, when he applied to work at
er rs

and should have, done better.” Sandy Hook Promise, a gun-vi-


Connecticut is currently olence-prevention nonprofit

represented by an all-Demo- founded by several family
cratic congressional delegation members of victims from the
m e

and her exit leaves the state’s 2012 elementary-school shoot-

party scrambling for a replace- ing. Mr. Baker was no longer
ment candidate. In light of Ms. employed by the nonprofit as
m rp

Esty’s announcement, the non- of last week, said Andrew Ricci,

partisan Cook Political Report a spokesman for Mr. Baker.
CHILLY WELCOME: Rayford Allen, a Tampa Bay Rays employee, checked out Yankee Stadium on Monday. A blast of unseasonable changed its prediction for her Mr. Baker, who has since re-
weather dumped several inches of snow on the area and forced the Yankees’ home opener against the Rays to be delayed until Tuesday. district to “likely Democratic” ceived treatment for alcohol-
from “solid Democratic.” ism and anger management,
co Fo

Matt Gorman, communica- apologized to Ms. Kain and the

tions director for the National congresswoman, Mr. Ricci

State Will Offer Retirement-Savings Plans Republican Congressional

Committee, said in a state-
ment that Ms. Esty had dam-
aged the Democratic brand
said. “I can only hope that my
actions moving forward... can
prove that I am a better man
than I was during the time
BY ANNE TERGESEN ment options and costs. and the GOP is “ready to win that I worked on Capitol Hill,”
AARP says 52% of New York this competitive seat this fall.” Mr. Baker said in a statement
Tucked into the $168 billion state’s private sector employ- Ms. Esty said she was alerted provided by Mr. Ricci.
state budget passed over the ees—or 3.5 million people— in May 2016 of possible miscon- In an email on Monday, Ms.
weekend is a measure to cre- work for employers that don’t duct by Mr. Baker, and that a Kain said her experience was
ate a state-sponsored retire- currently offer retirement-sav- subsequent inquiry found “a pat- illustrative of “a flawed sys-
ment-savings plan for up to ings plans. tern of behavior that victimized tem designed to protect pow-
3.5 million New Yorkers. Some say New York may many of the women on my erful people and that isolates

The move makes New York have opted for a voluntary staff.” The abuse included calling and ignores those who need
the 10th state, including Cali- program because of a move by Anna Kain, a member of Ms. protection most.”

fornia and Illinois, to approve Congress last year to repeal

a retirement-savings plan. The regulations designed to make

city of Seattle recently became

the first local government to
it easier for states and local
governments to require auto-
Chancellor’s First Day of School
take such a step. matic enrollment in IRAs.
States are responding to While states that require
data that indicate 55 million employers to participate—in-
full- and part-time private-sec- cluding Oregon and Illinois—
tor workers lack access to re- Gov. Andrew Cuomo spoke about the new state budget Monday. are pressing ahead, some
tirement-plan coverage at states have settled on ap-
work, according to AARP, an ers and employees would be companies shop for a retire- proaches considered less vul-
advocacy group for older voluntary. Employees who ment-savings plan if they nerable to legal challenges.

Americans that backs the pro- choose to enroll can contrib- choose to offer one. Some in the financial-ser-
grams. The nonprofit Em- ute up to $5,500 a year to a While most states are still vices industry have been criti-
ployee Benefit Research Insti- Roth individual retirement ac- designing their plans, Oregon cal of the state-sponsored re-
tute pegs the nation’s count. The annual limit for and Washington have launched tirement plans, saying they
retirement-savings shortfall at those 50 or older is $6,500. theirs in the past few months. would discourage small busi-
$4.13 trillion. State plans follow different New Mexico, Virginia, and Wy- nesses from offering their own
AARP estimates New York models. Several states, includ- oming have approved task plans.
would save about $1.5 billion on ing Maryland, Connecticut, Or- forces. Angela Antonelli, executive
various public-assistance pro- egon and Illinois, require The legislation passed in director of Georgetown Uni-
grams between 2018 and 2032 many small businesses to offer New York calls for a seven- versity’s Center for Retire-
if lower-income retirees save retirement-savings plans. In member board to develop a ment Initiatives, said it is pos-
enough to increase their retire- contrast, lawmakers in New plan during the next two to sible New York could choose
ment income by $1,000 a year. Jersey and Washington state three years. Among other to make participation for em-
Under the New York plan, have authorized state-run things, the board would deter- ployers “mandatory down the STEPPING UP: Richard Carranza arrived at work on Monday to
participation for both employ- marketplaces to help small mine the program’s invest- road.” start his job as the new chief of New York City schools.



rolex oyster perpetual and datejust

are ® trademarks.
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A8B | Tuesday, April 3, 2018 NY * **** THE WALL STREET JOURNAL.


Zabar Plans Lower East Side Spot


As a restaurateur and gour-

met-market operator, Eli Zabar
has built his reputation by fo-
cusing largely on Manhattan’s
Upper East Side, where he
runs more than 10 establish-
Now, after three decades in
the neighborhood, he is turn-
ing his attention elsewhere—


specifically, the Lower East
In partnership with his son
Oliver, Eli Zabar is planning to
open an all-day dining and
drinking spot at 252 Broome
St., a space formerly home to
the Lucky Bee, a Thai restau-
The Zabars haven’t finalized
the concept for the space or
signed a lease, but they are
slated to appear this month

before a Community Board 3

subcommittee to present their Eli Zabar with sons Sasha, left, and Oliver in 2015. The Zabars are eyeing a Broome Street space.
plans for approval.
From there, additional ap- East Side two years ago. With Zabar say. Nonetheless, father self downtown may be pricing,
‘Frozen’ grossed $2.2 million in its first full week on Broadway. provals would be required, in- its focus on craft beers, it has and son expect it to be a place said Arlene Spiegel, a New
cluding from the New York drawn a customer base that is that caters to the Lower East York-based restaurant consul-

‘Frozen’ Mints
State Liquor Authority. If all younger than is typically found Side, which has become a hub tant. On the Upper East Side,
goes well, the Zabars hope to at many of Eli Zabar’s other for adventuresome bar and she said, Eli Zabar caters to a
open the space, which still restaurant operators. market that can afford to dine
doesn’t have a name, in the fall. “We’re doing something ap- out or shop without question-

Broadway Gold The move downtown is a

“very big deal” for the family,
said Eli Zabar, adding that he
has faith in the project because
‘We’re doing
something appropriate
propriate for the neighbor-
hood,” said Oliver Zabar, who
added that he lives on the
Lower East Side.
ing the cost so much. That
isn’t the case on the Lower
East Side, she said.
“If he thinks he going to sell
BY CHARLES PASSY ally drab, mechanical and of- of his son’s involvement. “I
for the neighborhood,’ Eli Zabar’s businesses are a $14 tuna-fish sandwich,
ten boring. Cold, if you like.” know he knows what he’s do- says Oliver Zabar. separate from Zabar’s, the that’s not going to happen,”
“Frozen” is burning up the Broadway insiders and ob- ing,” he said. gourmet market and smoked- Ms. Spiegel said.
box office. servers say, however, that Oliver Zabar has been in- fish specialist that has been a Eli Zabar has branched out

The Disney-produced “Frozen” essentially is review- strumental in helping his fa- fixture on the Upper West Side beyond the Upper East Side be-

Broadway musical, based on proof. That is in large part be- ther launch and run Eli’s Night establishments. for decades. Zabar’s is owned fore. In 2012, he opened spaces
the movie of the same name, cause of the popularity of the Shift, a daytime cafe that The new Lower East Side by other family members. within Grand Central Market, a
grossed $2.2 million for the movie itself, which has taken transforms into a bar at night, spot won’t be another Eli’s A particular challenge for gourmet-food complex at the
week ended this past Sunday, in $1.2 billion at the box officeon which opened on the Upper Night Shift, Eli and Oliver Eli Zabar in establishing him- Midtown rail terminal.
according to the Broadway and ranks as the 10th-highest-
League, the trade group that grossing film of all time, ac-
tracks the industry.
The period marked the
cording to Box Office Mojo, a
film website.
Man Gets 10 Years for Text Fraud Scheme
us l,

show’s first full week since “Frozen” was proving itself

opening on March 22. a success on Broadway even
al a

The $2.2 million was a new before it opened, grossing which the defendants spent
weekly record for the St. $4.8 million in four weeks of on luxury cars, vacations,
James Theatre, according to preview performances. A Manhattan judge sen- multimillion-dollar homes
ci on

Disney officials. The previous With its $2.2 million open- tenced the head of a mobile- and gambling. Additional de-
record at the venue was held ing week, the show now rises phone aggregation company fendants involved in the
by “Dr. Seuss’ How the Grinch to the top box-office tier on to 10 years in prison on Mon- scheme have pleaded guilty,
Stole Christmas!,” which Broadway. Last week, only day for a multimillion-dollar prosecutors said.

grossed $1.6 million for the three shows grossed more— fraud scheme in which con- In a letter to the judge last
er rs

week ended Dec. 23, 2007. “Hamilton” ($2.9 million), sumers were charged for un- month, prosecutors explained
The success of “Frozen” “Wicked” ($2.7 million) and solicited text messages con- how the scheme worked.
comes despite the fact the the Disney-produced “The Lion taining horoscopes, trivia and “The scheme essentially
show opened to mixed re- King ($3.1 million). celebrity gossip. involved two main players in
m e

views. In his critique for The Also having another strong In December, a jury con- the cellphone industry: ag-
Wall Street Journal, Terry week is “Harry Potter and the victed Darcy Wedd, chief ex- gregators and content pro-
Teachout said he found the Cursed Child,” the two-part ecutive of Mobile Messenger, viders,” prosecutors said.
m rp

musical “well made but insipid play, currently in previews, of wire fraud, conspiracy to Executives of Mobile Mes-
and largely humorless.” that brings the world of Harry commit money laundering senger, an aggregator, pro-
Johnny Oleksinski, reviewer Potter to Broadway. The pro- and other crimes. vided phone numbers of cus-
for the New York Post, was duction, which opens on April Federal prosecutors said tomers who were to be auto
similarly blunt: “The once 22, grossed $1.6 million and that from 2011 to 2013, Mr. Darcy Wedd was sentenced Monday in federal court in Manhattan. subscribed. The company also
co Fo

lovely story has become visu- played to capacity crowds. Wedd worked with staffers at provided a way for customers
his company and other firms bill until consumers unsub- Maurice Sercarz, a lawyer to be billed for the messages,
to sign up millions of cus- scribed. representing Mr. Wedd, said prosecutors said. The con-
tomers to premium text-mes- “The defendant was at the it is a “sad day when a client tent-provider firms sent con-
saging services without ask- epicenter of a massive fraud receives a 10-year sentence.” sumers the unauthorized text
ing their permission, a that stole money from mil- At trial, lawyers for Mr. messages.
practice known as auto-sub- lions of Americans,” federal Wedd argued that while he Mr. Wedd, 40 years old, is
scribing. prosecutors wrote in a letter was in charge of the com- originally from Australia, ac-
Although phone users typi- in which they asked the judge pany, rogue employees were cording to court documents.
cally deleted the messages, to hand down a stiff sen- responsible for the fraud. He began working for Mobile
they were charged $9.99 a tence. “He was remorseless Mobile Messenger couldn’t Messenger in Sydney, Austra-
month, according to an in- for this conduct during the be reached for comment. lia, his lawyers wrote. When
dictment. time period of the conspiracy, Prosecutors said the the firm expanded to the U.S.

The charges continued to and his lack of remorse ex- scheme netted more than in 2004, Mr. Wedd moved to

be added to their cellphone tends to today.” $100 million in proceeds, New York City.


Season Tickets


On Sale Now!
Lawmaker Resigns Longtime Federal
    Amid Prosecution Judge Dies at 93
A Brooklyn assemblywoman U.S. District Judge Leonard
indicted on fraud charges in Jan- Wexler, who oversaw high-pro-
uary has resigned from the state file cases involving New York
• Choose from Full Season, Legislature, her attorney said. public officials during three de-
The assemblywoman, Demo- cades on the bench, has died. He
Half Season and 20 Game Plans crat Pamela Harris, was accused was 93 years old.
earlier this year of stealing city Judge Wexler, who was
• Guarantee Your Seats to and federal dollars meant for su- based in Central Islip, died on
the Biggest Games perstorm Sandy victims and pro- Saturday, according to his son.
grams to aid vulnerable youth. Judge Wexler oversaw a wide
She has pleaded not guilty. array of cases, including those of
VS. Her resignation was reported former Suffolk County Police
earlier by the New York Times. Chief James Burke, sentenced to
Federal prosecutors said Ms. prison for orchestrating a de-
Harris, 57 years old, submitted partment coverup after beating
fake documents to New York a handcuffed man; former Suf-
City’s Sandy-recovery initiative, folk County District Attorney
falsely claiming her home was Thomas Spota, fighting criminal
May 31- June June damaged in the October 2012 charges linked to Mr. Burke; and
June 3 8-10 22-24 storm. They said she submitted former Oyster Bay town com-
similar claims to the Federal missioner Frederick Ippolito, sen-
Emergency Management Pro- tenced to prison for tax evasion.
• Best Prices & gram, receiving $25,000 in funds —Associated Press
designated for storm survivors. In
Seating Locations separate allegations, prosecutors NEW YORK CITY
said Ms. Harris stole more than
• Potential Postseason Ticket $30,000 in City Council funds Woman Found Dead
Purchase Opportunities slated to go to a nonprofit she On Subway in Bronx
ran before becoming an assem-
blywoman in 2015. Police are investigating the
“We look forward to her day death of an unidentified 53-year-
in court and an opportunity there old woman found unconscious
to present the full facts,” her at- on a subway car in the Bronx.
 torney said earlier this year. Police say the woman was
In a letter to Assembly pronounced dead at the scene

  Speaker Carl Heastie on Monday, aboard a northbound No. 1 train
JAVITS CENTER AUTOSHOWNY.COM #NYIAS Ms. Harris resigned effective im- at the Van Cortlandt Park sub-
mediately, saying “recent events” way station at about 8:45 a.m.
FOR SECURITY PURPOSES, NO BACKPACKS ALLOWED. RANDOM SECURITY AND BAG CHECKS. have interfered with her ability Monday. She had no obvious
—Mike Vilensky —Associated Press
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THE WALL STREET JOURNAL. Tuesday, April 3, 2018 | A9

cigarettes, down from 9.8% the
previous year, according to re-
searchers at the University of
AT NORTHERN High School in Michigan-Ann Arbor.
Dillsburg, Pa., Principal Steve Leh- Juul Labs began as Ploom Inc.,
man’s locked safe, which once con- co-founded by James Monsees and
tained the occasional pack of con- Adam Bowen, graduate students at
fiscated cigarettes, is now filled Stanford University who were
with around 40 devices that look smokers and wanted to create an
like flash drives. alternative to cigarettes. In 2015,
The device is called a Juul and the company became Pax Labs Inc.,
it is a type of e-cigarette that de- which focused on vaporizing tech-
livers a powerful dose of nicotine, nology that could work with differ-
derived from tobacco, in a pat- ent materials, including cannabis.
ented salt solution that smokers Juul Labs Inc. was spun off as a
say closely mimics the feeling of closely held company in July 2017.
inhaling cigarettes. It has become Industry analysts say Juul’s
a coveted teen status symbol and a rapid rise in the estimated $2 bil-
growing problem in high schools lion e-cigarette category is re-
and middle schools, spreading markable. In recent months, Juul
with a speed that has taken teach- has captured close to half of the
ers, parents and school adminis- business, according to a Wells
trators by surprise. Fargo analysis of Nielsen data.
Mr. Lehman says he now asks That is a big lead, says Wells
teachers and administrators to Fargo tobacco analyst Bonnie Her-
closely monitor bathrooms—a pop- zog, placing it ahead of established
ular meeting spot for Juul use—in companies such as Altria Group
the four minutes between classes. Inc. and British American Tobacco
“We go for a walk. We stop in the PLC, which make their own
bathroom. It’s not uncommon to branded forms. Juul’s success “has
see a circle of kids passing it HEALTH had a lot to do with sleek and sim-
around,” he says. “That’s where we ple design and their superior tech-
confiscate.” nology” that more closely mimics
After two decades of declining
teen cigarette use, “Juuling” is ex-
ploding. The Juul liquid’s 5% nico-
tine concentration is significantly
higher than that of most other
Schools and Parents cigarette smoking, she says.
Altria spokesman Steve Callahan
says the company takes a broad
“portfolio approach to meet the dif-
ferent interests of adult smokers
commercially available e-ciga-
rettes. Juul Labs Inc., maker of the
device, says one liquid pod deliv- Fight a ‘Juul’ Epidemic and vapers.” British American To-
bacco didn’t immediately respond
to a request for comment.

ers nicotine comparable to that The Juul starter kit—with de-

delivered by a pack of cigarettes, vice, charger and four flavor
or 200 puffs—important for adult pods—retails for $50. Pods are
smokers trying to switch to an e- As the e-cigarette sweeps high schools and middle schools, officials struggle also sold separately, at $4.25 on
cigarette. It is also part of what at- average—less than the average re-
to stem teens’ use of the device, which delivers a powerful dose of nicotine
tracts teens to the product, which
some experts say is potentially as
on tail price for a pack of cigarettes.
The pods come in packs of four for
addictive as cigarettes and has around $16, and many retailers sell
schools and parents scrambling to Hot New Thing out quickly. The device’s ease of
us l,

get a grip on the problem. Cigarette use among teens has use changes the cigarette-break

Medical and advocacy groups dropped over the past decade, while ritual for many people: The Juul
al a
including the American Academy vaping has emerged strongly in recent can be picked up and put down
of Pediatrics and the Campaign for years, surveys show. without switching on or off—or
Tobacco-Free Kids last week, sued having to go outside to smoke.
ci on

the Food and Drug Administration, 2007: Percentage of teens who say Some ex-smokers say that means
challenging its decision last sum- they ever tried cigarettes they reach for it more frequently.
mer to extend certain deadlines Research shows that sweet fla-
for e-cigarette makers seeking FDA 8th graders 22.1% vors in e-cigarettes are particu-
approval for their products. “The 10th graders 34.6% larly attractive to young people,
er rs

need for FDA to regulate individ- says Meghan Morean, a substance-

12th graders 46.2%
ual e-cigarette products has never abuse researcher at Oberlin Col-
been more urgent,” says Matthew 2017: Percentage of teens who say lege who has studied the relation-
Myers, president of the Campaign they ever tried cigarettes ship between flavors and teenage
m e

for Tobacco-Free Kids. “Juul swept use of e-cigarettes. She says many
through high schools across Amer- 9.4% of Juul’s fruitier flavors could be
ica without most parents even Top, Steve Lehman, principal of Northern High School in Dillsburg, Pa., monitors for appealing to underage users. Other
m rp

knowing it existed.” Juul use; above, confiscated devices are kept in a safe, logged in manila envelopes. 15.9% brands of e-cigarette liquids also
An FDA spokesman declined to 26.6% come in fruit flavors such as
comment on the lawsuit filed in Juul Labs chief administrative offi- school principals to clarify that pos- cherry, blueberry and melon.
federal district court in Maryland. cer. “It’s non-cylindrical because session of Juul and other vaping de- 2017: Percentage of teens who say Juul Labs says the flavors can be
One big concern, addiction re- when smokers move away from vices is forbidden on school they ever tried vaping important for adults who are trying
co Fo

searchers say, is that Juul lacks cigarettes they don’t want to be grounds, as with any tobacco prod- to quit smoking. “Their palates
many characteristics that deter reminded of cigarettes.” Some- uct. She is in the process of amend- 18.5% change when they come off of ciga-
people from smoking in the first thing that could be plugged di- ing the district’s policy. 30.9% rettes,” says Ms. Gould. “They don’t
place, such as a harsh smell and rectly into a USB port was also New York City’s private Grace 35.8% want to be reminded of smoking.”
burnt-tobacco taste. Juul flavors convenient, she says. Church School has ordered special- Some former cigarette smokers
include “Creme Brulee,” “Fruit As underage use became a ized sensors for its high school Source: University of Michigan say the device has helped them
Medley” and “Mango,” in addition growing problem, she says, Juul in bathrooms, specifically for detect- THE WALL STREET JOURNAL. kick what can become an expen-
to “Classic Tobacco.” August raised the minimum age ing vaping such as Juul use. If the sive smoking habit. Paul Masme-
“This could be a highly addictive requirement for buying products sensors detect vapor, administra- Federal regulation prohibits jean, a 25-year-old wellness and
product for youth,” says Adam Lev- on its website to 21 from 18. Ms. tors get an email or a text mes- anyone under 18 from purchasing sobriety coach in New York, says
enthal, director of the Health, Emo- Gould says the company is trying sage with a time stamp. A hallway e-cigarettes. Some states have his Juul helped him quit ciga-
tion and Addiction Laboratory at the to find more ways of working with camera can provide further infor- even higher minimum ages of up rettes. He now spends $40 a week
University of Southern California. local law enforcement to prevent mation on who entered or exited to 21. A secondary market for Juul on pods, compared with $140 a
A Juul device fits easily in a sales to under-age customers. It is around that time, says spokesman has emerged among younger teens. week when he was smoking. He

pocket and looks nondescript also looking at technologies that Topher Nichols. “We don’t want “I’ve had customers who just also says he feels better. “Now cig-
when plugged into a laptop’s USB could disable the device on school any of our students suspended for turned 18 and bought a bunch of arettes gross me out,” he says.
drive to recharge or sitting on a grounds, she says. what we think is a stupid way to Juuls,” presumably to distribute or Meghan Moriarty, a 49-year-old
desk. Teachers say students gather While schools have long in- injure your career,” he says. sell to younger friends, says Alex- business manager for a physical

in bathrooms, library carrels and cluded discussion of tobacco use in It has also entered middle ander Terc, a sales associate at the therapy company in Washington
locker rooms to pass Juuls. The their rule books, many have never school. Sabot at Stony Point, a Noon, a smoke shop in Silver D.C., has struggled with smoking
minimal vapor and barely there addressed vaping, where nicotine pre-K to 8 private school in Rich- Spring, Md. “We can’t stop them since her teens. After her 19-year-
smell makes it harder to detect is delivered through a process in- mond, Va., has incorporated teach- from buying a bunch.” old son Tucker started smoking
than some other e-cigarettes. volving heat without burning. ing on the dangers of Juul into its In the last few years, vaping cigarettes regularly, she decided to
Juul Labs says minors shouldn’t “The kids are saying, ‘I’m not health classes for sixth, seventh with e-cigarettes has taken off. In buy him a Juul last June. She also
use any tobacco products, includ- smoking, it’s not against the rules,’” and eighth graders. “They’re tell- 2017, 18.5% of 8th graders said bought one for herself. “I hate the
ing its own. Criticism that it was says Ember Conley, superintendent ing me their friends are doing it, they had ever vaped, up from 17.5% fact that he’s addicted to nicotine,”
designed to appeal to kids is “ab- of the Park City School District in and asking them to do it, in eighth the previous year. That compared she says, “but I’d rather he has the
solutely false,” says Ashley Gould, Park City, Utah. She has met with grade,” says teacher Kara Page. with 9.4% who had ever smoked Juul and not cigarettes.”

BONDS: ON RELATIONSHIPS | By Elizabeth Bernstein


YOU’RE FEELING depressed. They chose 67 people with depres-
What have you been eating? sion for the study, some of whom
Psychiatrists and therapists were already being treated with
don’t often ask this question. But a antidepressants, some with psy-
growing body of research over the chotherapy, and some with both.
past decade shows that a healthy Half of these people were given
diet—high in fruits, vegetables, nutritional counseling from a dieti-
whole grains, fish and unprocessed tian, who helped them eat health-
lean red meat—can prevent de- ier. Half were given one-on-one so-
pression. And an unhealthy diet— cial support—they were paired
high in processed and refined with someone to chat or play
foods—increases the risk for the cards with—which is known to
disease in everyone, including chil- help people with depression.
dren and teens. After 12 weeks, the people who
Now recent studies show that a improved their diets showed sig-
healthy diet may not only prevent nificantly happier moods than
depression, but could effectively those who received social support.
treat it once it’s started. And the people who improved
Researchers, led by epidemiolo- their diets the most improved the
gist Felice Jacka of Australia’s most. The study was published in
Deakin University, looked at January 2017 in BMC Medicine. A

whether improving the diets of second, larger study drew similar

people with major depression conclusions and showed that the
would help improve their mood. Please see MOOD page A10
For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or

A10 | Tuesday, April 3, 2018 THE WALL STREET JOURNAL.


nean-style diet made up primar-
ily of fruits and vegetables, ex-
tra-virgin olive oil, yogurt and
cheese, legumes, nuts, seafood,
Continued from page A9 whole grains and small portions
boost in mood lasted six months. of red meat. The complexity of
It was led by researchers at the this diet will provide the nutri-
University of South Australia and tion our brain needs, regulate
published in December 2017 in our inflammatory response and
Nutritional Neuroscience. support the good bacteria in our
And later this month in Los gut, says Lisa Mosconi, a neuro-
Angeles at the American Acad- scientist, nutritionist and associ-
emy of Neurology’s annual meet- ate director of the Alzheimer’s
ing, researchers from Rush Uni- Prevention Clinic at Weill Cornell
versity Medical Center in Chicago Medical College in New York.
will present results from their re- Can a good diet replace medi-
search that shows that elderly cine or therapy? Not for every-
adults who eat vegetables, fruits one. But people at risk for de-
and whole grains are less likely pression should pay attention to
to develop depression over time. the food they eat. “It really
The findings are spurring the doesn’t matter if you need Pro-
rise of a new field: nutritional zac or not. We know that your
psychiatry. Dr. Jacka helped to brain needs nutrients,” Dr. Ram-
found the International Society sey says. A healthy diet may
for Nutritional Psychiatry Re- work even when other treat-
search in 2013. It held its first ments fail. And at the very least,

conference last summer. She’s it can serve as a supplemental

also launched Deakin University’s treatment—one with no bad side
Food & Mood Centre, which is effects, unlike antidepressants—
dedicated to researching and de- that also has a giant upside.
veloping nutrition-based strate- Loretta Go, a 60-year-old
BOOKS gies for brain disorders. mortgage consultant in Ballwin,
The annual American Psychiat- Mo., suffered from depression for

Two New Novels Look at

ric Association conference has decades. She tried multiple anti-
started including presentations on depressants and cognitive behav-
nutrition and psychiatry, includ- ioral therapy, but found little re-
ing one last year by chef David lief from symptoms including

Mythology With Fresh Eyes

Bouley on foods that support the insomnia, crying jags and feel-
peripheral nervous system. And ings of hopelessness. About five
some medical schools, including years ago, after her doctor
Columbia University’s Vagelos wanted to prescribe yet another
College of Physicians and Sur- antidepressant, she refused the
geons, are starting to teach psy- medicine and decided to look for
fore. In her 2012 book tainly be my tree,” Ovid chiatry residents about the im- alternative treatments.
“The Song of Achilles,” writes. portance of diet on mental health. Ms. Go began researching de-
she recast “The Iliad” Seeing the 17th-cen- Depression has many causes— pression and learned about the
YEARS AFTER CIRCE watches as a same-sex love tury Bernini sculpture it may be genetic, triggered by a importance of diet. When she read

Odysseus push off from her en- story between Achilles depicting the scene, specific event or situation, such that cashews were effective in re-

chanted shores, she hears a song and Patroclus. In Mr. Boast was struck as loneliness, or brought on by ducing depression symptoms, she
about their storied meeting. “Circe,” the goddess is by Daphne’s expres- lifestyle choices. But it’s really ordered 100 pounds, stored them
“I was not surprised by the por- excavated from “The sion—“terror, astonish- about an unhealthy brain, and too in the freezer and started putting
trait of myself,” she says. “The Odyssey” and given an on ment and, uncomfort- often people forget this. “When them in all her meals.
proud witch undone before the epic of her own. ably, sexual ecstasy,” he we think of cardiac health, we She also ditched processed
hero’s sword, kneeling and begging Yet patriarchy is just says. His book takes think of strengthening an organ, and fried foods, sugar and diet
for mercy. Humbling women seems part of how “Circe” ex- that “stunningly com- the heart,” says Drew Ramsey, a sodas. In their place, she started
to be a chief pastime of poets. As plores egotism and the pressed emotional arc,” psychiatrist in New York, assis- to eat primarily vegetables and
us l,

if there can be no story unless we abuse of power, says as he puts it, as a blue- tant clinical professor of psychia- fruits, eggs, turkey and a lot of
crawl and weep.” Emily Wilson, a classics print for a modern-day try at Columbia and author of tofu.
al a
That wry observation isn’t part of professor at the Univer- Daphne. She suffers “Eat Complete.” “We need to start Within a few months, Ms. Go
Homer’s “Odyssey,” nor does it ap- sity of Pennsylvania from cataplexy, a medi- thinking of strengthening another says she noticed a difference in
pear in other ancient poems where whose translation of cal condition in which organ, the brain, when we think her mood. She stopped crying all
ci on

the sorceress—perhaps best known “The Odyssey” was she is paralyzed when- of mental health.” the time. Her insomnia went
for turning unsuspecting sailors into published in November. ever she experiences A bad diet makes depression away and she had more energy.
swine—occasionally pops up. This Circe is depicted strong emotion. worse, failing to provide the brain She also began enjoying activi-
Circe is for once the protagonist, in bristling under the The books aren’t the with the variety of nutrients it ties again that she had given up
“Circe,” a novel by Madeline Miller control of her father first ones to center fe- needs, Dr. Ramsey says. And pro- when she was depressed, such as
er rs

slated for release this month. Helios, who “believed male mythological cessed or deep-fried foods often browsing in bookstores and vol-
Women figure prominently in the world’s natural or- characters. In 1805, contain trans fats that promote unteering at the animal shelter.
classical mythology, but neither der was to please him,” Mary Tighe’s poem inflammation, believed to be a Ms. Go’s depression has never
Helen nor Penelope occupies the writes Ms. Miller. Nei- “Psyche” adapted the cause of depression. come back. “This works so well,”
m e

central hero role of Odysseus or ther as mighty as her tale of the god Cupid So what should we eat? The she says. “How come nobody else
Achilles. In the Greek tragedies, father nor as beautiful as her and his mortal love. research points to a Mediterra- talks about this?”
they are doomed characters, sacri- mother, she occupies the bottom More recently, H.D., the pen
m rp

ficed by their fathers or murdered of the divine hierarchy, and she is name used by Hilda Doolittle, gave
by their sons. In “Circe,” like the eventually exiled to an island “The Iliad” a feminist revision
recently published “Daphne,” Will where her own powers develop in with “Helen in Egypt.” In “The
Boast’s novel inspired by the story solitude. When a crew lands on World’s Wife,” Carol Ann Duffy re-
of Apollo and Daphne, the female her shores, she welcomes them focused on mythology’s unsung
co Fo

perspective sharpens into focus in with a feast. It is only after the women, including Circe, while in
a way that doesn’t happen in the ship captain rapes her that she “The Penelopiad,” Margaret At-
original stories. They are among a starts turning visitors into pigs. wood imagined the voice of Penel-
handful of modern novels and Mr. Boast’s “Daphne,” published ope, Odysseus’s wife.
poems that use antiquity’s female in February, is a looser adaptation Myths have been endlessly re-

characters in new ways. of myth. In Ovid’s “Metamorpho- told, in different ways, for differ-
Such retellings are an “act of ses,” Daphne is a water nymph pur- ent cultural moments. “Circe” suc-
defiance,” says Bernard Schweizer, sued by the lustful god Apollo. ceeds “because Miller really has
a professor at Long Island Univer- Caught, she begs her father, a river something to say about how these
sity and editor of a volume on the god, for help, and he offers it by questions of abuse of power, fam-
female epic, “a kind of counter-he- turning her into a laurel tree. ily relationships, the relationship
gemonic experiment.” Apollo gropes and kisses her with the self and autonomy get
Ms. Miller, a scholar of classical nonetheless. “Since you can’t be worked out,” says Ms. Wilson. Research suggests that a Mediterranean diet full of fruits, vegetables,
literature, has retold the myths be- my bride, at least/you will cer- “There’s something real at stake.” seafood, olive oil and lean meats can prevent and even treat depression.


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THE WALL STREET JOURNAL. Tuesday, April 3, 2018 | A11


cludes with the rousing “When I
Get to Heaven,” in which Mr. Prine
lays out what he intends to do
once he arrives: “smoke a cigarette
that’s nine miles long,” “kiss that
pretty girl on the
Tilt-A-Whirl,” seek
out his family and
drink a big vodka-
and-ginger ale. “This
old man is going to
town,” he sings tri-
While Mr. Prine
continues to play
live when his health
allows—“I’ve never
had a break longer
than a month-and-a-
half,” he told me—
he found it difficult to write songs
for a new album. He tried to col-
laborate with fellow songwriters,
but didn’t end up with much. (One
song written with the Black Keys’
Dan Auerbach appears as the title
track on that musician’s “Waiting
on a Song,” released last year.)
Frustrated by his lack of progress,
his wife, Fiona, who serves as his
manager, and his stepson, Jody
Whelan, who runs his record label,
dispatched him to the Omni Nash-
ville Hotel, which is adjacent to
the Country Music Hall of Fame,
with 10 boxes of unfinished lyrics.
“I had a Sharpie and legal pads,
too,” he said, adding that he pre-
fers to type his drafts on a Smith
Corona that Tom Hanks gave him.
He completed songs he’d begun
over the years with Mr. Auerbach,
Roger Cook, Pat McLaughlin and
Phil Spector, with whom Mr. Prine
wrote “If You Don’t Want My
Love” for his “Bruised Orange” al-
bum, issued 40 years ago. The

jaunty, heartbreaking folk ballad

“No Ordinary Blue” was co-au-
thored by Keith Sykes. Irked at as-
tronomers who had demoted Pluto
on from its status as a planet, Mr.
Prine wrote “Lonesome Friends of
Science” by himself. In typical
John Prine returns with

Prine fashion, it’s about much

his first solo studio more than that: “The world will
us l,

album in 13 years. end most any day / Well, if it does

then that’s OK / ’Cause I don’t live
al a
here anyway / I live down deep in-
MUSIC REVIEW | By Jim Fusilli side my head.”
The performances are captured
ci on

beautifully by producer Dave

John Prine on Life’s Cobb, who appears to have placed

Mr. Prine and his guitar in front of
a microphone and then let him be
to make magic. Guests include
er rs

Brandi Carlile, Jason Isbell and

Agonies and Absurdities Amanda Shires; Mike Webb’s con-

tributions on keyboards always
seem just right. Thus, musically as
m e

well as lyrically, “The Tree of For-

giveness” is a pleasure, one that,
though a long time in coming, will
m rp

Nashville, Tenn. stantly memorable melodies, its On “The Tree of Forgiveness,” came home, would you let me in / delight for a period that’s longer
THE CLACK of his cane preceding lyrics tell of the agonies and absur- Mr. Prine writes of an America he Fry me some pork chops and for- still. Continuing to disarm listen-
him, John Prine enters the dining dities of life that often stand side sees in his rearview mirror, reviv- give my sin?” Mr. Prine asks in ers with the perfect turn of
room of his home here with a by side. Much as he has since his ing seemingly extinct words and “Boundless Love.” phrase, Mr. Prine has created a
warm smile that erases worries first album was released in 1971, phrases to depict it. “Well, you’re His first solo studio album in 13 universe of people who have some
co Fo

about his health. Knee-replace- Mr. Prine composes as one who probably standing there / With years, “The Tree of Forgiveness” sort of grievance, appreciate
ment surgery is the latest setback; has lived long and knows to look your slick-backed Brylcreem hair / echoes with allusions to death— what’s been lost, and concede
in 1998, he was treated for skin inward as well as beyond himself Your Luckies and your daddy’s which might be expected given his that, to quote the title of one of
cancer in his neck and, 15 years to comprehend the drama of every- fine-toothed comb,” he sings in health woes—yet it is never maud- his earlier songs, “it’s a big old
later, lung cancer. But with a twin- day existence; because he writes so “Egg & Daughter Nite, Lincoln Ne- lin. In the tender “Summer’s End,” goofy world.” It’s a soul-deep treat
kle in his eye, the 71-year-old says effectively about loneliness and braska, 1967 (Crazy Bone).” In he sings, “You never know how far to be in his company once again.
that he is back. isolation, his appreciation for love “Knockin’ on Your Screen Door,” a from home you’re feeling / Until
His new album, “The Tree of and loyalty lands with piercing im- man who was once in “high cot- you’ve watched the shadows cross Mr. Fusilli is the Journal’s rock
Forgiveness” (Oh Boy), out April pact. “Everything is waiting for me ton” finds himself abandoned the ceiling.” “Caravan of Fools” and pop music critic. Email him at
13, supports his claim. It is prime to mine it,” he told me on a rainy “with nothin’ but an eight track” opens with what may be images of and follow him on
Prine: Accompanied by simple, in- mid-March afternoon. of a George Jones record. “If I a funeral procession. The disc con- Twitter @wsjrock.

Weather The WSJ Daily Crossword | Edited by Mike Shenk


Shown are today’s noon positions of weather systems and precipitation. Temperature bands are highs for the day.
40s 0s <0 1 2 3 4 5 6 7 8 9 10 11 12 58 Stone and 28 Jim who played
d t
Stallone Gomer Pyle
Vancouver 20s 10s 0s 13 14 15
Calgary 20s

30s 10s 59 Radiate 29 “Well, now...”

30s ip
Winnipeg 16 17 18
Seattle 30 Literary “before”
20s 60 Stockyard sights
50s 19 20 21 22
Portland l
Helena t
Montreal 40s 30s Down 32 “Bull’s-eye!”
Bismarckk Ottawa 40s
Billings 10s A g t
Augusta 23 24 25 26 1 Fashion designer 33 Frank McCourt’s
Eugene i
p s / . Paul
Mpls./St. T
Toronto A bany
Albany t
50s Raf follow-up to
Pierre 27 28 29 30
60s k
Milwaukee ff l
Buffalo rtford
Hartford 60s 2 Make more “Angela’s Ashes”
30s t
New Yorkk
ew Y 31 32
Sioux FFalls Clev d
Cleveland 70s balanced 34 John Steed’s
La City
Salt Lake C
City es Moines
Des Ch
Cheyenne Omahah 50s Philadelphia
Phhil d lphi 80s 33 34 35 36 partner on “The
Sacramento d p
Indianapolis Pit b h
Pittsburgh 3 Japanese
40s Topeka City
Kansas h
hi g
on D C
D.C. 90s horseradish Avengers”
an Francisco
San Spring
Springfieldd 37 38
C d
Colorado Charles
h l t
Charleston 60s Richmond
h d 100+ 35 Campaign
70s L
Las p g
St.. Louis
Lou L
Lou ill
Louisville 4 Lose it
Vegas 70s Raleigh l igh
h 39 40 41 42 43 creator
Los A
Angeles 50s 60s
h ill
Nashville Charlotte
Ch l 5 Theft from a
ta F
Santa Fe 44 45 46 36 George Eliot’s
90s Ph
Phoenix Alb q q
Albuquerque k
Oklahoma City
City Memphip
Memphis C b
Columbia temple, say
San Diego
80s L e Rockk
Little A t
Atlanta Warm Rain “Adam ___”
T c
Tucson Birminghamh 47 48 49 50 6 “Blech!”
80s Cold 38 “Platoon” setting
h Dallas T-storms
El Paso Ft. Worth Jackson
Mobile Jacksonville 51 52 53 54 7 Test taken lying
80s 70s down 40 Water channel
0s A
Austin Stationary
10s ew Orleans
New l d
Orlando Snow 55 56 57 with a gate
20s n Antonio
San A t i t
Houston Tampa 8 “Gather your
10s 80s 41 Device used with
l l Showers Flurries 58 59 60 belongings!”
A h g
Miami the actions at the
30s 70s 90s 9 Cardinals, on ends of the
40s Ice
TOUCHY TOPIC | By Freddie Cheng scoreboards starred answers
U.S. Forecasts City Hi
Lo W
Hi Lo W City Hi
Lo W
Hi Lo W
Across 24 Like Colorforms 44 Jeff Sessions 10 Long-odds bet 42 Tin that inspired
s...sunny; pc... partly cloudy; c...cloudy; sh...showers; 1 Puts in stitches pieces and his 11 Compliment on the Frisbee
Omaha 37 17 r 46 32 s Frankfurt 63 51 pc 60 47 r predecessors:
t...t’storms; r...rain; sf...snow flurries; sn...snow; the court 43 Long-plumed
Orlando 87 66 pc 87 62 t Geneva 61 44 pc 56 45 r 5 Water-collecting 26 “For ___ a jolly
Today Tomorrow Abbr. waders
Philadelphia 52 51 r 68 35 r Havana 87 65 s 86 66 pc pit good fellow” 12 Drink with
City Hi Lo W Hi Lo W Phoenix 87 64 s 91 65 s Hong Kong 82 73 s 82 72 pc 45 Warm sweater omakase 45 Dandy dude
Anchorage 33 25 s 36 30 c Pittsburgh 64 46 r 47 27 c Istanbul 59 46 s 62 48 s 9 Train stops: 27 •Mockumentary material
Atlanta 79 57 pc 62 40 pc Portland, Maine 42 37 pc 55 29 r Jakarta 89 77 t 89 77 t Abbr. rock band 15 Toward the
Austin 83 49 t 72 51 s Portland, Ore. 54 43 c 58 48 r Jerusalem 68 47 pc 74 52 s
47 41-Down
46 Babe, for one rudder downloads
Baltimore 57 52 r 66 34 sh Sacramento 77 48 s 74 50 pc Johannesburg 73 57 pc 73 55 c 13 “Fathers and 29 Café con ___
Boise 56 41 pc 59 46 pc St. Louis 64 28 t 45 33 s London 57 47 t 54 42 t Sons” novelist 47 Uncouth fellow 18 Set of tools 48 Fleur-de-___
Boston 44 40 r 62 33 r Salt Lake City 54 40 pc 64 49 pc Madrid 61 47 sh 60 41 sh 31 “You’re ___ one,
Burlington 48 40 c 56 23 r San Francisco 66 51 s 64 51 pc Manila 89 77 s 90 76 pc Turgenev Mr. Grinch” 48 Uncouth fellow 20 Unwilling to 50 Mouth, in slang
Charlotte 81 62 pc 69 37 sh Santa Fe 64 31 pc 70 40 pc Melbourne 70 49 pc 74 51 s 14 Site of a famous budge
Chicago 44 28 r 38 22 pc Seattle 53 41 c 52 46 r Mexico City 78 57 pc 78 56 t 32 One in the red 49 Tie up 52 Refusals
Cleveland 66 41 r 43 28 c Sioux Falls 27 5 sn 33 17 s Milan 58 50 r 57 50 t Indian sight 25 JFK guesses
33 They get into 51 •Make like a 53 XXXVIth prime
Dallas 76 42 t 67 49 s Wash., D.C. 63 56 sh 66 38 sh Moscow 41 31 c 42 36 c 15 Parts of hearts
Denver 51 27 pc 64 38 pc Mumbai 91 80 pc 93 80 pc hot water miser 26 Torah language number
51 34 r
81 72 pc 82 74 sh
41 26 sf
International Paris
Rio de Janeiro
50 t
76 r
57 44 t
84 75 pc
16 Bigger butte 36 Data throughput 54 Potential
Previous Puzzle’s Solution
Today Tomorrow 17 •Counterpart of measure weapon for
Houston 83 54 c 74 51 s Riyadh 89 69 pc 87 68 pc B E AM S T G I F S P A M
Indianapolis 67 34 t 43 28 pc City Hi Lo W Hi Lo W Rome 65 54 pc 61 53 t a guy-cry film Professor Plum A MM A N R I T A L I Z A
Kansas City 46 18 pc 46 36 s Amsterdam 61 46 t 57 44 r San Juan 83 74 sh 84 75 sh 37 “That’s it for S E N T I M E N T S I R O N
me” 55 River to the Rio I R E T A B C AM A R O
Las Vegas 77 58 s 85 64 pc Athens 70 53 pc 71 52 s Seoul 69 50 pc 58 45 r 19 Roughly equal
Little Rock 76 37 t 62 38 s Baghdad 90 66 pc 80 55 pc Shanghai 80 63 pc 72 58 c Grande N A S A C E N T I M E T E R
Los Angeles 71 55 pc 72 56 pc Bangkok 90 79 t 92 79 t Singapore 89 78 c 90 78 pc 21 Revue segment 38 Song section
56 The Golden D A T E S G L A S S
Miami 84 73 pc 84 70 pc Beijing 54 35 c 52 36 c Sydney 74 68 pc 75 68 pc C E N T R A L T I M E
Milwaukee 38 26 r 35 19 c Berlin 62 48 t 66 47 pc Taipei City 87 70 pc 87 70 pc
22 Airfare add-on 39 Stylish State, familiarly S E E I T E V I A N
Minneapolis 33 9 sn 30 17 s Brussels 61 48 t 58 44 r Tokyo 73 57 pc 73 54 pc 23 Small 40 •Scrape against, 57 Med. school MU L T I M E D I A E S T O
Nashville 79 41 pc 56 35 pc Buenos Aires 79 55 s 81 59 pc Toronto 40 38 r 42 23 sn E L P A S O O R E I A M
New Orleans 83 61 c 71 55 pc Dubai 89 75 pc 91 76 s Vancouver 50 38 c 49 40 r
protuberance as a parked car course C L A N P E N T I M E N T O
New York City 47 46 r 66 34 r Dublin 54 38 t 44 31 sh Warsaw 57 43 pc 65 48 pc H E C K E L I E M I T E R
Solve this puzzle online and discuss it at

Zurich 63 40 pc 62 43 t E T A S N Y P D A N O D E
Oklahoma City 61 29 pc 60 43 s Edinburgh 41 37 r 42 30 r
For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or

A12 | Tuesday, April 3, 2018 * ***** THE WALL STREET JOURNAL.


DiVincenzo Leads Villanova to Title


SAN ANTONIO—The men’s college basket-

ball landscape rarely allows for dynasties.
The lure of the NBA prevents powerhouse
rosters from staying together for long. The
gap in talent between smaller teams from
minor conferences and the traditional blue
bloods continues to shrink. The unforgiving
nature of the NCAA tournament, where
chaos reigns and bracket-busting upsets
routinely ravage top contenders, all but en-
sures that no school experiences the eupho-
ria of cutting down the nets too often.
But now here stands Villanova, a program
bulldozing through all the obstacles meticu-
lously designed to obstruct true dominance.
The Wildcats claimed their second national
championship in three years Monday night,
a 79-62 dismantling of Michigan that capped
off one of the most impressive stretches in
modern history.
They accomplished this feat by over-
whelming every opponent unfortunate
enough to stand in their way in the pres-
sure-packed environment of March Madness.
Villanova won their six tournament games
by an average of nearly 18 points, steam-
rolling the field practically unchallenged.
Against Michigan, one Wildcat in particu-
lar dazzled the Alamodome crowd with a
brilliant display befitting the country’s best
offense: Donte DiVincenzo, a redshirt sopho-

more from Delaware. He scored 31 points off
the bench, all but carrying Villanova while

starters Jalen Brunson, Omari Spellman and

Phil Booth battled foul trouble.
It added up to Villanova’s 136th victory
since the beginning of the 2014-15 season,
the most ever for a Division I team in a Villanova Wildcats guard Donte DiVincenzo scored a game-high 31 points in Monday’s national championship victory over Michigan.
four-year span, surpassing Duke’s 133 from
1998-2001. Those Blue Devils won only one They finished the season with 464 3-point- Nonetheless, the Wildcats persisted ward Mikal Bridges said. “We just love play-
title, or exactly half as many as these Wild- ers made, surpassing the 442 that Virginia against Michigan’s swarming pressure, ing with each other, playing off each other.”
cats. And when the final buzzer sounded, Military Institute hit in 2007. Those Keydets opening up a commanding lead in the sec- Villanova’s coronation came at the ex-
us l,

showering the court with a cloud of confetti, connected on less than 32% of their at- ond half. It demonstrated why Michigan pense of Michigan, who exceeded modest
Villanova could finally start to figure out tempts. Villanova made 40%, hoisting up coach John Beilein compared Villanova’s of- expectations to advance to college basket-
al a
what it all means. 225 fewer threes. fense to the Warriors, saying it “can do ev- ball’s grandest stage, falling one game short
“I really can’t get my mind around it. I On Monday, however, Villanova needed to erything.” Kansas coach Bill Self called the of its first championship since 1989. The
never dreamt of this,” Wildcats coach Jay find another way to beat a Michigan squad Wildcats “as good a team as we’ve played.” Wolverines opened the year unranked. Pre-
ci on

Wright said after the game. that boasted one of the best defenses in the They showed it Monday. With key offen- season polls picked them to finish in the
The Wildcats’ offense alone puts them in nation, particularly against the three, the sive weapons forced to sit for long middle of the pack in the Big Ten. They
rarefied air, emerging as an unstoppable Wildcats’ biggest strength. Villanova fal- stretches, DiVincenzo took over. He shot 10- didn’t crack the top 25 until January.
force capable of sparking a revolution at the tered from the outside in first half, a far cry of-15 from the field, including 5-of-7 from 3- But Michigan never saw an offense quite
collegiate level the way the Golden State from its performance in the semifinal point range. like Villanova’s, because no offense quite
er rs

Warriors and Houston Rockets inspired a against Kansas on Saturday, when it sank 18 “Not just one person is going there trying like Villanova’s exists. That offense made
paradigm shift in the professional ranks. total 3-pointers, a Final Four record. to get numbers or anything like that,” for- the Wildcats champions—again.
m e

BASEBALL | By Jason Gay

m rp


co Fo

The dinosaurs won, because the doing. In my time as the Journal’s sports
dinosaurs always win. But more moron, I’d say the No. 1 complaint readers
on the dinosaurs in a minute. have about modern sports is the price of at-
I was in Baltimore this week- tendance, especially for families. It’s ridicu-
end, for Easter with my lunatic in- lous how expensive it is to take a family to a
laws. The kids were thrilled and lot of professional sporting events. By the
sugared up, filling baskets with chocolate bun- time you get through with tickets, parking,
nies and plastic eggs—and, for the first time terrible hot dogs and maybe two beers,
in their lives, Peeps. Have you ever seen a per- you’re halfway toward a plane ticket to Italy.
son eat his or her first Peep? It’s like watching It isn’t good. It isn’t good for fans—and I

somebody discover they can eat a doorknob. believe it isn’t good for pro sports, which
I can eat this? This is actually food? are taking the short-term dollars from cor-

(I ate a Peep, too. A pink one. I don’t porate entertainment and suites, and forsak- A promotion in
mind ‘em. And they’re gluten free!) ing the long-term benefit of growing a new Baltimore aims
But amid all egg the hunting, I was think- audience. to develop a next
ing about baseball. Yes: baseball. The Orioles Baseball remains a bargain compared to a generation of fans.

had an afternoon game at Camden Yards. It lot of other sports. But it’s also an aging
wasn’t exactly warm outside, but it was warm sport, with plenty of competition. Could it
enough. It would be great. April baseball! I’d really afford to price out children? select games on the schedule—you want to eling dinosaurs show. Not live dinosaurs,
bring the whole family, bundle us up, make a Something has to give. In a smart experi- bring your kids free to coveted rivalry alas, but some sort of exhibition, where they
memory we’d treasure forever. ment, Orioles have decided to give the upper games with the Yankees and Red Sox, you entertain kids as they shake parents upside
And here was the best part: the kids would deck. can. Also, if either team falls behind by down for money.
be free. “I still think there’s a perception that more than 12 runs, your kids can pitch. OK I But baseball was baseball! It was a day
You may have heard something about this. baseball, as affordable as it is, is not acces- made up that last part. game—no bedtimes would be missed. The
The Baltimore Orioles are offering a promo- sible to everybody,” Orioles team executive Angelos confirmed that the policy will be Minnesota Twins were in town! Camden
tion this season in which, for the price of an vice president John Angelos told me the enforced on the honor system. “No one is Yards is a gem! I’d buy everyone hats!
adult ticket in the upper deck, you’ll be able to other day. “We have to have families, we going to be checking if your 9-year-old is re- I had no chance. My kids basically consider
bring two kids ages 9 and under for…nothing. have to have families with kids—for right ally a 9-year-old,” he said. themselves paleontologists. Dinosaurs it was.
That’s right: Nothing! As in zero dollars! now, and the next generation.” Aw man, they should enforce it. Here’s So we went to the dinosaurs. Oof. It cost
How about that? Zippo in life is free any- Angelos said that the team’s own research my suggestion: if the kid can’t name more $25 a head, no freebies for my 3- and 5-
more. People pay $4 for bottled water. Air- indicated that rising ticket prices were a top than two members of Paw Patrol, he or she year-olds. We got to see Ripoffosaurus and
lines practically charge you to use the rest concern—especially when it came to buying is definitely over 9 years old. Pricegougeosaurus—and my kids shook me
room now. I’m sorry sir, but you purchased tickets for kids. My kids, they can tick off the members of down at the gift shop for another 20 bucks
a non-rest room seat. If you want to use our “We want to make it worth it to you right Paw Patrol like they’re carved onto Mount for toys they’ve already lost.
rest room, you need to upgrade to Lavatory now,” he said. Rushmore. They’d be undisputed freebies at Now I know why the dinosaurs went ex-
Plus. The Orioles plan to run their promotion Camden Yards. The problem was, there was tinct. Next time, I’m taking my kids to base-
I’m excited about what the Orioles are all season long. They’re not just doing it for competition in Baltimore on Sunday: a trav- ball—free.

THE COUNT expenses with cash- “In particular for college basketball, the FBI
Bank Shots flow adjustments, risk
assessments and
investigation attacks the very heart of the in-
dustry,” Brewer said. “The reason for the drop in
KENTUCKY HOLDS The most valuable college-basketball
programs (valuations in millions):
growth projections.
While Brewer
the valuation is that new risk.”
These issues hurt the value of schools tied
1. Kentucky
found that cash flows
were up 7.1% over last
to the investigation, Brewer noted, and more
generally big-time programs that could be af-
2. Indiana 243.0 year, the overall values fected by any fallout. He added that TV and
The big money of college basketball has tumbled because of media ratings for conference tournaments and
3. Louisville 233.6
never been in the news as much as it has dur- the headwinds facing NCAA tournament games so far showed a
ing this past season. With the season wrapped 4. Kansas 191.2 the sport that haven’t mixed bag of results.
up with the national championship between 5. Duke 169.8 shown up in balance Overall, while an SEC team in Kentucky has
Michigan and Villanova, it’s time to settle a dif- 6. Wisconsin 160.7 sheets yet but have the top spot in these rankings, the Big Ten and
ferent but relevant question: What’s the most 7. Syracuse 149.6 the potential to chal- ACC dominate the top of the rankings: The Big
valuable program in the country? 8. Ohio State 143.3 lenge the future of Ten has seven of the top 14 valuations, while

For the second straight season, it’s Kentucky, the sport. Those ques- the ACC has four of the top 11.
9. Arizona 133.9
according to an annual study by Ryan Brewer, tions include broad For the Big Ten, that doesn’t include Michi-
an associate professor of finance at Indiana Uni- 10. Maryland 131.9 Hamidou ones about amateur- gan, playing for this season’s championship. The
versity-Purdue University Columbus. Kentucky is Source: Ryan Brewer, IUPUC; WSJ Diallo ism and more specific Wolverines are the eighth most valuable team
worth $246.6 million, but that’s 28% lower than issues, such as the in their own conference, according to Brewer, at
a year ago—with valuations across the sport would be worth on the open market if it could ones raised by the federal probe resulting in 10 $95.4 million. That’s still more than their oppo-
down 7.4%. be bought and sold like a professional franchise. arrests and which alleged a system of corrup- nent Monday night, Villanova, at $43.1 million.
Brewer assesses what every college team The study analyzes each program’s revenues and tion, bribery and kickbacks. —Andrew Beaton
For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or

THE WALL STREET JOURNAL. Tuesday, April 3, 2018 | A13

Thank You, Jeff Sessions BOOKSHELF | By David A. Shaywitz

What does
Jeff Sessions
have to do to
on Monday morning he tweeted
another dig at his attorney gen-
eral’s leadership:
in it—because he knows what
is in that soon-to-be-released
inspector general’s report?
savaging it in Morrison v. Ol-
son (1988)—arguably his finest
opinion. In 1999, after unhappy
get a nice
tweet from his
On Thurs-
“So sad that the Depart-
ment of ‘Justice’ and the FBI
are slow walking, or even not
giving, the unredacted docu-
Those disappointed with
Mr. Sessions’s decision don’t
seem to recognize that Mr. Hu-
ber has pretty much the same
bipartisan experience with in-
dependent counsels, Congress
let the provision lapse. Now
special counsels such as Mr.
With Disaster
day the attor- ments requested by Congress. powers that Robert Mueller Mueller are more limited legal
ney general An embarrassment to our enjoys: to get search warrants, beasts.
By William
released a let- country!” to subpoena witnesses and But it remains a dreadful By Chris Clearfield and András Tilcsik
ter informing Mr. Trump is right about documents, and to ask a grand idea. As former assistant U.S. (Penguin Press, 294 pages, $28)

Congress that the slow-walking of files in de- jury to indict. The only advan- attorney Andrew McCarthy
he’d asked Utah-based U.S. At- fiance of congressional subpoe- tages of a special counsel are notes, if a special counsel is hings fall apart,” W.B. Yeats observed of the world
torney John Huber to investi- nas. He’s also right that critical truly “special”—i.e., not ac- he saw around him nearly a century ago. And they
gate lawmakers’ complaints info has been redacted from countable to the president like still do. Chris Clearfield, a former derivatives
about the Justice Department documents sent to Capitol Hill. A capable U.S. every other executive em- trader, and András Tilcsik, a Toronto business-school
and the FBI. Turns out Mr. Hu- This includes the lively little ployee—then he is constitu- professor, have written “Meltdown” to tell us how and why.
ber has been working on this text chat between FBI par- attorney is a far better tionally suspect. If he’s not We live in a world of ever more complex systems, the
investigation, in concert with amours Peter Strzok and Lisa choice than a second special, it is unclear why he is authors note, with unobservable components and unimagined
the Justice Department’s in- Page about how they might ar- an improvement over any ca- interconnections. Dense global networks may have made the
spector general, since Novem- range to meet with a Foreign special counsel. pable U.S. attorney. world smaller, but they have also created the conditions in
ber. The news of Mr. Huber’s Intelligence Surveillance Court For Congress, the even big- which small glitches can cascade into catastrophic failures.
appointment came two days judge while making it appear ger problem is the conflict be- The 1979 Three Mile Island disaster—where “a plumbing
after a statement from FBI Di- accidental. ones that should be discour- tween the goals of a special problem, a stuck valve, and an ambiguous indicator light”
rector Christopher Wray con- Still, the president is behind aged: an Inspector Javert-like counsel (indictments) and the led to a nuclear accident—serves as a prismatic example.
firming a similar push by Mr. the curve. To begin with, the focus on a single target or set exercise of legislative over- “Different parts of a system unexpectedly interacted with
Sessions to get agents re- only reason Mr. Wray has of targets that goes on much sight (political accountability). one another,” the authors
sponding to congressional sub- promised the FBI will do better longer than it should and In his “Meet the Press” inter- explain. “Small failures
poenas off their tuchuses. is because Mr. Sessions leaned strays far from the original view Sunday, Sen. Johnson combined in unanticipated
Notwithstanding the thin on him. More to the point, this mandate. noted that the primary casu- ways, and people didn’t
news coverage, these are big is a problem the president Like so many other bad alty of this clash is public dis- understand what was
steps. Yet few on the GOP side could easily resolve himself, by ideas that plague American closure. Note to GOP members: happening,”
seemed pleased. Though Sen. using his authority to declas- political life, the special coun- If you think the FBI and Jus- Failures like Three Mile
Ron Johnson (R., Wis.) specifi- sify material as well as assign- sel as we conceive of it today tice Department are arrogant Island, Messrs. Clearfield and
cally said Sunday on NBC’s ing someone not only to get is the bastard son of the Nixon about sharing information, see Tilcsik argue, stem from two
“Meet the Press” that he was Congress the information it era. After the initial Water- what happens when a special variables. The first is
delighted Mr. Sessions had not seeks but to review all redacted gate prosecutors were thought counsel moves in. complexity: the extent to which
opted for a second special material to see what the bu- to lack sufficient indepen- By reading the riot act to a system is linear and observable
counsel to look into allegations reaucrats are hiding. dence in going after the presi- his reluctant FBI director and (like an assembly line) or
of FBI misconduct in its probe As for Mr. Huber, though his dent, Congress during the shunning the appointment of interconnected and largely
into Hillary Clinton’s emails appointment elicited barely a Jimmy Carter era passed the another special counsel, Mr. invisible. The second is coupling:

and its application for a war- yawn in the news cycles, this is Ethics in Government Act, Sessions has rendered a ser- the degree to which a system possesses

rant to spy on a Trump cam- not a mistake the FBI’s recently which provided for the ap- vice to the Constitution, to “slack”—allowance for the time and flexibility
paign associate, other Republi- sacked deputy director, An- pointment of a truly indepen- good government and even to to manage problems. Our determination to increase
cans groused. drew McCabe, is making. Could dent special prosecutor. Mr. Trump, though he may not complexity and wring out inefficiencies, the authors warn,
Then there’s the president. it be that Mr. McCabe estab- on The only good thing to realize it. Perhaps even worthy moves us into a danger zone and set us up for calamity.
While Donald Trump remains lished a GoFundMe legal de- come out of this terrible law of a celebratory presidential To see the dangerous interaction of speed and complexity,
silent (for now at least) about fense fund—which now has was Justice Antonin Scalia’s tweet. consider the Knight Capital fiasco. On Aug. 1, 2012, a faulty
the appointment of Mr. Huber, more than half a million dollars brilliant and solitary dissent Write to software update resulted in a series of automated stock
purchases for the trading firm and the accumulation of an
us l,

unwanted $6.5 billion position in the first half-hour of

Arab Leaders Abandon the Palestinians trading—overwhelming the firm’s safety features and
al a
resulting in losses from which it never recovered.
Not only do safety systems often fail to protect us, as in
On the surface nationalists like Gamal Abdel peace that Israel has offered by launching wars against Is- the case of Knight Capital, they may even place us at greater
ci on

it was busi- Nasser and lesser figures like repeatedly and that Yasser rael, trusting its friends risk. One hospital’s electronic prescribing system, for
ness as usual Saddam Hussein dreamed of Arafat and his successor have abroad to force the Jewish example, designed to reduce medication errors, contributed
in the Gaza creating a united pan-Arab so far rejected. state to cease fire before it to the overdose of a patient in part by offering up so many
Strip. Hamas state that could hold its own Mahmoud Abbas and the can inflict serious damage on warnings and alerts that attendants came to ignore them. A
bussed thou- among the world’s great pow- Palestinian Authority are play- Hamas’ leadership. But in the similar problem can be seen when critical-care staffers suffer
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sands of resi- ers. When nationalism sput- ing for time. They support the 2014 war, Arab foot-dragging from alarm fatigue—the cacophony of buzzes, bells and beeps
dents to the tered out, many Arabs turned first goal by refusing to pay gave Israel time to deal a se- that can obscure important signals. A less consequential
border with to Sunni Islamist movements the salaries of government em- rious defeat to Hamas. An- example, but equally illuminating, is the bungled Best Picture
By Walter
Israel to begin instead. Those, too, have for ployees in the Hamas-run Gaza other war would be equally award at the 2017 Academy Awards show, attributable, it
Russell Mead
m e

a six-week the time being failed, and to- Strip even as they resist pres- ruinous and for the same rea- turns out, to some of the very safeguards (such as redundant
protest cam- day Arab states seek protec- sure to make peace with the son: The Arab governments envelopes) designed to prevent error.
paign ahead of the 70th anni- tion from Israel and the U.S. want Hamas crushed, and
m rp

versary of Israel’s indepen- against an ascendant Iran they won’t stop Israel from
dence—or, as the Palestinians and a restless, neo-Ottoman Facing threats from doing the job. Thanks to dense networks and the
call it, the nakba, or “catastro- Turkey. The current demonstra- complacency of groupthink, small glitches
phe.” This protest would mark But the American protec- Iran and Turkey, they tions, Hamas hopes, can
“the beginning of the Palestin- tion on which Arabs rely can- want peace—and to whip up a global wave of can cascade into catastrophic failures.
co Fo

ians’ return to all of Pales- not be taken for granted, as rage and indignation against
tine,” according to Hamas President Trump’s apparent strangle Hamas. Israel without provoking a
leader Ismail Haniyeh. determination to withdraw full-on war. That might What can we do? For starters, Messrs. Clearfield and
It didn’t. Stones were U.S. forces from Syria in the weaken the Arab coalition Tilcsik suggest, we can implement tools from behavioral
thrown, tires were set aflame, near term demonstrates. Un- Jewish State. It is not yet clear against it. But the prime au- economics that mitigate our less helpful reflexes. A
and shots were fired. When der these circumstances, Is- what the authority’s final re- dience for Hamas’s perfor- systematic approach to estimating project completion can
the smoke cleared, the bor- rael’s unmatched access to sponse to the peace pressure mance this time isn’t the moderate the optimism bias that leads to missed deadlines
ders were still in place and 15 Washington makes Jerusalem will be. Even if it ultimately Arab world; it is Turkey and and cost overruns. The use of explicit criteria to make
Palestinians lay dead, with even more important to Arab decides to accept an Arab- Iran, whose support Hamas decisions can reduce our dependence on gut reaction.
three more succumbing later calculations. Perhaps only Is- sponsored compromise, mak- will need to survive if it is Conducting a “premortem”—imagining that a proposed
from injuries. While families rael can keep the U.S. engaged ing a show of resistance can driven from Gaza (as Arafat project has failed and figuring out the possible reasons—
endured their private trage- in the region. improve its credibility with the was once driven from Jordan can enable us to anticipate potential problems.
dies, familiar controversies It is against this backdrop Palestinian public and, per- and Lebanon). Where “Meltdown” really hits its stride is in taking on
swirled. The usual people de- that the old Palestinian alli- haps, extract better terms. Rifts between Palestinians the factors that promote groupthink and discourage dissent.

nounced Israel in the usual ance with the Arab nations Hamas is in an even more and other Arabs are nothing The authors cite 19th-century physician Ignác Semmelweis,
ways, countered by the usual has frayed. Most Arab rulers desperate plight. The Arab new. But the collapse of Arab whose warnings to Viennese obstetricians about the need to
defenders making the usual now see Palestinian demands blockade and donor strike nationalism and the failure of wash their hands in a chlorine solution went unheeded,
arguments. as an inconvenient obstacle cripples Gaza in ways the Is- Sunni radicalism have weak- costing patients their lives and Semmelweis his job and

But what is happening in to a necessary strategic alli- raelis never could. Food is ened the political forces that sanity. They also mention LeeAnne Walters, the Flint, Mich.,
Gaza today is not business as ance with Israel. The major growing scarce, electricity is rallied Arab support to the resident whose prescient complaints about the city’s water
usual. Tectonic plates are Gulf states and Egypt appar- erratic, unemployment ex- Palestinian cause. With mil- quality in 2015 were initially ridiculed by city officials.
shifting in the Middle East as ently have agreed on two ceeds 40%, and raw sewage lions of new Arab refugees in Avoiding disasters requires more than just speaking up,
the Sunni Arab world counts goals. The first is to strangle runs into the sea. Many Gaza Syria, and growing threats to of course. “Dissent makes no difference if no one listens,”
the cost of the failed Arab Hamas in Gaza to restore the residents presumably want Arab independence from pow- Messrs. Clearfield and Tilcsik remind us, but listening
Spring and the defeat of authority of the Fatah-led the only thing Hamas can’t of- erful neighbors, prioritizing proves to be difficult. When your beliefs are challenged, the
Sunni Arabs by Iranian- Palestinian Authority. The fer: relief. Palestine is a luxury many Ar- authors write, your body reacts as if you suddenly spotted a
backed forces in Syria. second is to press the author- Historically Hamas has re- abs feel they can no longer wild animal—“your heart beats faster and your blood
In headier times, pan-Arab ity to accept the kind of acted to this kind of pressure afford. pressure rises.” This physiological response aligns with
decades of psychological studies showing subjects adjusting
their opinions to match the group.

Local Laws Imperil 5G Innovation Managers who overcome these instincts and encourage
divergent opinions, the authors say, are more likely to avoid
disaster. After a National Transportation Safety Board study
By Robert McDowell A 5G-enabled Internet of carriers from placing small rights-of-way, these states are of airplane crashes revealed that most happened when the

Things will connect people, cells in local rights-of-way saying they want the benefits more senior pilot was in command—generally because the
arty Cooper stepped data and new devices, creat- and on government-owned of the 5G revolution. less experienced officer was reluctant to point out any
out of his office and ing a surge of economic utility poles. Zoning ordi- Most states, however, have errors he observed—a new training program focused on
onto a New York growth. IHS Markit estimates nances designed for much declined to take constructive changing hierarchical cockpit norms was launched and
street corner, pulled out his that in the U.S. alone 5G will larger towers often require action, imperiling U.S. 5G ultimately embraced by the industry.
phone, and made a call. It yield $719 billion in growth local zoning boards to ap- leadership. But the Federal Perhaps the most important lesson of “Meltdown” is
happens millions of times a and 3.4 million new jobs by prove small cells. Some locali- Communications Commission captured by a series of studies performed by Evan
day—but it didn’t then. It was 2035. The world-wide figures ties refuse altogether to ne- is showing a way out. On a Apfelbaum and his colleagues at MIT. They found that, as
April 3, 1973, and Mr. Cooper, could be as high as $3.5 tril- gotiate right-of-way access, party-line 3-2 vote in March, much as we’re predisposed to agree with a group, our
now 89, was making the first lion and 22 million jobs. while others impose prohibi- the FCC took its first step by willingness to disagree increases dramatically if the group
call ever from a hand-held tive fees and other unreason- exempting small cells from is diverse; deference dissipates. Homogeneity may facilitate
cellphone. able conditions. federal environmental and “smooth, effortless interactions,” according to the authors,
Forty-five years later, gov- Misapplied zoning One Georgia municipality historic preservation re- but diversity drives better decisions.
ernmental obstacles threaten is considering an annual fee views, streamlining small cell Organizations can keep themselves honest by leveraging
to block a new wave of wire- rules and huge fees of $6,000 to attach a small reviews on tribal lands, and “strangers,” individuals who understand enough to be
less innovation, known as fifth block antennas the cell to city-owned structures. setting a time-frame for FCC relevant but are removed enough to see things differently.
generation or “5G.” It will Three cities in California de- action. But the FCC hasn’t NASA’s Jet Propulsion Laboratory, for example, embeds
multiply download speeds by size of pizza boxes. mand annual payments be- yet acted to curb state and designated outsiders—JPL engineers with an independent
at least 10 times, allowing tween $2,600 and $8,000 for local 5G internet “taxes” and line of reporting—within teams to provide a fresh
wireless carriers to compete each cell attached to a city- needless delays. The com- perspective and flag problems.
with cable companies for high- But to prepare for 5G, owned utility pole. Newport mission may take these Despite occasionally having the feel of a business journal
speed internet access. With wireless carriers need to de- Beach, Calif., is charging steps later this year, and it article that was extended against its will into a book-length
superfast speeds and low lag ploy thousands of “small cell” $10,800. should act fast so the U.S. text, “Meltdown” effectively conveys why addressing
times, 5G will enable advances antennas, the size of pizza More than a dozen states ensures its leadership and systemic failures is both difficult and essential: difficult
in everything from driverless boxes. Even though small have approved laws to makes the visionary Marty because it’s so much more comfortable to rely on gut
cars to the “tactile internet,” cells can fit invisibly on roof- streamline regulations for Cooper proud. instinct and trust familiar colleagues than to insist on
in which surgeons can per- tops and lampposts, some small-cell installations. By structured approaches and solicit the views of others;
form operations and builders state and local governments capping municipal fees at rea- Mr. McDowell, a former essential because we are moving into the danger zone and
operate construction equip- are acting as if they’re 100- sonable levels—usually a few FCC commissioner (2006-13), need all the help we can get.
ment remotely, and entertain- foot towers. hundred dollars a cell—limit- is a partner at Cooley LLP
ment can include sensations In some places, outdated ing review time, and allowing and chief public policy ad- Dr. Shaywitz, a physician, is a venture capitalist in
beyond the audiovisual. local requirements prohibit small cells in most public viser to Mobile Future. Silicon Valley.
For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or

A14 | Tuesday, April 3, 2018 THE WALL STREET JOURNAL.


Two Can Play at Trade War Would Milton Be as Hardline on Trade Now?

onald Trump hasn’t been talking about and $518 million in almonds to China in 2016. Economist Milton Friedman’s views try’s production and the profits going
the rising stock market lately, and no For pistachio farmers, China accounts for 55% on world trade were correct when he abroad. Certainly, that’s undesirable.
made them (Notable & Quotable, BILL BISHOP
wonder. Stocks have given up their ear- of total exports. Almond exports are down from
March 27). But he didn’t envision Katy, Texas
lier gains since the President five years ago because China subsidizing inefficient state in-
unveiled his protectionist China’s response to drought limited production, dustries to create trade monopolies. Friedman stated “dollars that we
trade agenda, and the Dow Trump’s tariffs hit but sales to China rebounded This has produced a world trade im- spend for the [foreign] steel find their
Jones Industrial Average fell 6% last year. balance through the misallocation of way back to the U.S. as demand for
another 1.9% on Monday. Tech innocent bystanders. A Chinese medicinal root is capital and savings. To rebalance world U.S. goods and services.” No arguing
stocks took a particular beat- one of the more obscure items trade and increase world economic this. According to the National Associ-
ing as Nasdaq fell 2.74%, but on the 15% tariff list, and the growth China has to stop subsidizing ation of Realtors, foreign buyers pur-
the main policy concern is the new uncertainty impact will fall almost entirely on one county inefficient state trading industries, in- chased 284,455 U.S. properties in the
from rising trade tension. in central Wisconsin around the city of Wausau. crease the size of its domestic econ- 12 months ending March 31, 2017,
China slapped punitive tariffs on 128 catego- Ginseng from Marathon County is highly prized omy, reduce restrictions on capital out roughly half of our annual build of new
of its country and allow other compa- homes.
ries of American goods on Monday in retalia- in Asia, and about $30 million of it is exported
nies into its country. Only then will Both Thomas Jefferson and Abra-
tion for the Trump Administration’s national- annually to China. Milton Friedman’s view be realized. ham Lincoln knew a propertied popu-
security levies on steel (25%) and aluminum Chinese ginseng farmers have been trying to ED KAHL lace was required to give political sup-
(10%) imports last month. The Chinese response supplant Wisconsin’s lucrative market niche for Woodside, Calif. port to the Constitution.
so far is measured, affecting $3 billion in annual years, and now they have a chance. Republican STEPHEN R. MEYER
trade or about 2% of U.S. goods exports to Congressman Sean Duffy can thank the Trump I hate to disagree with Milton Fried- Vero Beach, Fla.
China, but it sends a pointed message that a Administration for this boost to his opponent’s man on anything but I don’t think he
larger trade war would hurt American busi- November campaign. carried his trade-imbalance argument Were Friedman alive today, he
nesses, farmers in particular. China’s retaliation is best understood as an far enough. He reasoned that people might be convinced to back away from
American pork producers are the biggest tar- economic and political demonstration, hitting receiving U.S. dollars could either keep his trade example as he backed away
them or eventually spend them in the from his open borders and free flow of
gets in this retaliation, since they sold more a small number of products to signal where fu-
U.S., and both would benefit the U.S. A labor idea. He subsequently said that a
than $1 billion in meat to China last year and ture blows could fall if the Trump Administra- third option is to buy U.S. capital modern social-safety-net nation is in-
will now face a 25% tariff. Demand for pork tion imposes punitive tariffs on $60 billion in stock—companies and land. If this per- compatible with open borders.
from countries such as Japan, South Korea and Chinese goods to punish the theft of intellectual sisted long enough, Americans would LARRY G. DEVRIES
Mexico is growing, while exports to China fell property. It’s notable that both Republican- wind up owning very little of the coun- Vancouver, Wash.
by 11% in the past five years. That reflects a glut leaning and Democratic states were hit. Tariffs
and falling prices in China. Hog farmers in on America’s biggest exports to China, such as
states such as Iowa and Illinois should still reap soybeans and Boeing aircraft, were held in re-
an expected 5% growth in overall exports this serve. But don’t be surprised if they’re on the Why Is Such Sensible Advice Labeled Racist?
year, but any growth in China will be filled by list if the President imposes Section 301 tariffs
farmers in other countries. as he has vowed to do. Regarding Wendy Wang’s “‘The Se- law Prof. Amy Wax. Hoping that MTV
quence’ Is the Secret to Success” (op- or Hollywood will promote these val-
Greater damage may come from China’s 15% The Trump Administration says it is using tar-
ed, March 28): When my wife was a ues to our youth anytime soon is
tariff on American fruits, nuts and sparkling iffs against China as bargaining chips to get a young woman, her Lithuanian immi- sheer fantasy.
wine. Apple growers in Washington state only better deal for American exporters. And at least grant grandmother, who started life ARI WEITZNER

gained full access to the Chinese market in 2015 U.S. and Chinese officials are now talking about very poor, asked the same three ques- New York

and have seen rapid growth in exports from a new trade understanding. But in the meantime tions in the same order every time
zero three years ago. Sales of American wine there will be significant collateral damage to in- they met. When are you going to fin- Ms. Wang says that liberals often
to China, almost all from California, grew 10% nocent business bystanders, American consum- ish school? When are you going to get dismiss “the sequence” as “a right-
last year to $197 million, still a small percentage ers, and the overall U.S. economy.
on a job? When are you going to get mar- wing notion.” I think she’s right, but I
of total production. Such industries now face Mr. Trump risks undermining the policy ried? Maybe this is why the grandchil- don’t understand why liberals would
headwinds to building market share. gains from tax reform and deregulation that dren rose to the middle class. dismiss such a clear and obvious
California nut farmers are especially vulner- have teed up the economy for faster growth. JAMES G. RUSSELL means of helping those in poverty.
Midlothian, Va. HAL DANTONE
us l,

able since China is their largest export market. That’s the anxiety investors are showing as they
Kingsville, Texas
According to the Golden State’s agriculture de- sell stocks. Is anyone in the White House paying Ms. Wang is essentially describing
partment, they sold $530 million in pistachios attention?
al a
“bourgeois” values—finish high The adults raising at-risk kids
school, get a job, then marry before should frame Wendy Wang’s piece and
having children—as the secret to suc- insist it be read every day before
A Second Kick of the Ninth Circuit
ci on

cess and avoiding poverty. Unfortu- school and right before bedtime. As

nately, in today’s politically correct Frederick Douglass put it: “It is easier
ne paradox of the Supreme Court is that Monday’s ruling is thus the Supreme Court’s environment, promoting these values to build strong children than to repair
some of the nation’s finest legal minds second rebuke of the Ninth Circuit in this case. brings opprobrium, charges of racism broken men.”
are often asked to resolve the most And it’s fair to ask: Was the Ninth Circuit the and the loss of one’s job in academia. WAYNE LANDESMAN
er rs

straightforward questions Just ask University of Pennsylvania Orchard Park, N.Y.

model for the old line that
about what a statute says. A The Supreme Court there is no education in the
case in point is a Monday deci- second kick of a mule?
sion that is a victory for the
orders the plain The law exempts any sales- Saudis Pushed Wahhabism Well Before 1979
m e

rule of law over legal obfusca- reading of labor law. man, partsman or mechanic Adel Al-Toraifi refers to 1979 as formances; religions other than Is-
tion and a deliberate political primarily engaged in selling or the year that Saudi society shifted lam weren’t allowed places of
m rp

attempt to expand the Fair La- servicing automobiles, trucks toward Islam’s most conservative te- worship and alcohol was certainly
bor Standards Act. or farm implements. The four dissenting liberal nets (“The Saudis Take On Radical prohibited as were pork products.
The High Court ruled 5-4 in Encino Motorcars, Justices say service advisers are a separate Islam,” op-ed, March 20). I lived in Strict Shariah law ruled.
LLC v. Navarro that a service adviser at a car group, in part because they aren’t actually Riyadh starting shortly after the in- Living in a country going at warp
dealer—a person who chats with customers about wielding a wrench. famous Arab oil embargo to late speed from relatively poor to unimag-
co Fo

1976. inably rich, and socially from the

repairs and costs, among other tasks—is a “sales- Justice Thomas: “True, service advisors do
What didn’t seem to change was eighth to maybe the 19th century, was
man” who is “primarily engaged” in “servicing not spend most of their time physically repair- Saudi Islamic conservatism in the an adventure. I just don’t think much
automobiles.” This is important because such em- ing automobiles. But the statutory language is morals, lifestyle and the social realm. changed regarding Islamic mores and
ployees are exempt from overtime pay require- not so constrained.” Partsmen, for example, “do The great of influx of foreign work- civil liberties either before 1979 or
ments in the Fair Labor Standards Act. not spend most of their time under the hood.” ers and advisers, like myself, cer- since, until now.
Writing for the majority, Justice Clarence A “salesman” who is “primarily engaged” in tainly ushered in a new wave of MICHAEL F. THIEL
Thomas notes that the Labor Department in 2011 “servicing automobiles” is “an apt description Western influence putting pressure Portsmouth, N.H.
departed from decades of legal interpretation to of a service advisor,” Justice Thomas notes, and on the Saudi way of life, but it didn’t
exempt service advisers. A group of workers it’d be hard to come up with a better one for a seem to have any influence on Saudi
sued for back pay under the new Obama rule. The job listing. Islamic strictures. It’s a Mistake to Eulogize
Pre-1979, women certainly weren’t
case reached the Supreme Court for the first One point to keep in mind is how close the de-
allowed to drive; western women
Brexit Before It Happens
time in 2016, and the Justices said that the rule cision was, and no doubt a Justice appointed by
dressing in anything considered pro- Fraser Nelson notes that, despite

was procedurally defective and thus unworthy President Hillary Clinton would have flipped the vocative (like slacks) were harassed the dire predictions of some prognos-
of the judicial deference that the Ninth Circuit case. Such low profile cases don’t attract much in the souk and often smacked in the ticators, the U.K. economy has per-
Court of Appeals had allowed. The High Court press attention, but these are where the law is tush by the cane-wielding Mutaween formed well since the Brexit vote of
didn’t rule on the merits and remanded the case often upheld and defended—or expanded for po- (religious police); there were no cin- June 2016 (“The U.K. Is Doing Just

back to the district court. litical purposes. emas or public entertainment per- Fine, Thanks,” Review, March 24).
This is true, but it would be foolish to
draw firm conclusions about what
Trump, Amazon and the Post Office EU Is Right to Seek More will happen when Brexit actually oc-
curs. Britain’s withdrawal from the

Taxes From U.S. Platforms European Union won’t begin until at
resident Trump on Monday continued boon for taxpayers since the additional revenues
The European Commission is head- least March 2019, will likely take
his Twitter tantrum against Amazon, help defray the post office’s fixed costs. ing down the right path in the case of years to unfold and longer for the po-
which seems to irritate him even more Over the past decade, the post office has “Europe’s Tax War on U.S. Tech” (Re- litical and economic consequences to
than CNN. He should train his lost more than $60 billion view & Outlook, March 22). The U.S. become clear. Mr. Nelson is right
fire on Congress for the post The President is firing even while failing to make re- should follow its lead and adopt a uni- when he says that the Brexit vote
office’s problems. at the wrong target if quired retirement health pay- form, destination-of-sales system wasn’t in any case primarily about
Over the weekend the Presi- ments. Operating costs not when taxing corporate profit. The cur- economics. This was true for both
dent tweeted that “the U.S. he wants to save money. including retirement obliga- rent approach—taxing profit based on Leavers and Remainers. For the lat-
Post Office will lose $1.50 on tions have outpaced revenue “origin”—is nearly meaningless since ter, separating from a union with
average for each package it de- growth over the past four origin can be shifted virtually any- which Britain has mostly common in-
livers for Amazon. That amounts to Billions of years, notwithstanding a 60% increase in ship- where through arbitrary transfer pric- terests was a high-risk leap into the
ing. The result is companies like unknown, and a distraction at a time
Dollars.” He popped off again Monday morning: ping and package revenue.
Google generating millions of dollars of growing threats to shared liberal
“Only fools, or worse, are saying that our money When businesses lose money, they shave in sales and profit in Europe but pay- democratic values. At least for this
losing Post Office makes money with Amazon. costs or go bankrupt. Private package-delivery ing little tax there. expatriate Brit, those concerns ha-
THEY LOSE A FORTUNE, and this will be competitor UPS has announced plans to freeze The origin-based tax system leads ven’t lessened since June 2016.
changed.” its pension plan for non-unionized workers, and to uneconomic, wasteful distortions. JONATHAN RAMSDEN
The source for Mr. Trump’s tweets appears FedEx employs independent contractors. But Tax-avoidance strategies requiring Columbus, Ohio
to be an op-ed by Josh Sandbulte that ran in our collective-bargaining agreements constrain the corporate headquarters in Ireland are
pages last summer, which argues that Amazon post office’s ability to improve efficiency. Ac- open only to large multinationals. A
free rides on the post office with its last-mile cording to USPS’s annual report, the number of fairer, more transparent tax system Pepper ...
delivery deal. Amazon drops off presorted pack- deliveries measured across all work hours will allow small startups to compete
on a more equal footing with giants
And Salt
ages at United States Postal Service (USPS) de- hasn’t increased since 2014.
like Google. A destination-based tax THE WALL STREET JOURNAL
pots, and postal workers deliver them to homes Congress has also refused to reduce USPS’s
system would create a more equitable
on their normal routes. fixed costs by changing the six-day delivery man- distribution of the tax burden for
Congress has mandated that USPS deliver date despite pleadings from prior postmasters small and large companies alike, en-
mail to every address in America six days a general. A modified schedule could impel Ama- couraging U.S. businesses to keep
week, which is a fixed business cost that Ama- zon and other online retailers to pay more for de- their factories and their profits inside
zon and some other large e-retailers piggy-back liveries. Alas, lawmakers can’t even pass de mini- the U.S.
on. The incremental labor and transportation mis reforms. Last year a bipartisan bill was MICHAEL STUMO, CEO
costs to deliver Amazon’s packages are typically introduced in the House that would enroll postal Coalition for a Prosperous America
small and hard to measure. retirees in Medicare and convert door delivery Washington
Mr. Sandbulte contends the agency should al- to clustered drop-offs. It’s gone nowhere.
locate more of its fixed costs to packages, and One reason is that the status quo benefits ru- Letters intended for publication should
a Citigroup analysis last year estimated parcels ral residents as well as businesses that use mail be addressed to: The Editor, 1211 Avenue
of the Americas, New York, NY 10036,
would on average cost $1.46 more if shippers advertisements. Maybe President Trump could or emailed to Please
were required to absorb a greater share. The use his bully pulpit to press Congress for postal include your city and state. All letters
post office isn’t a profit-maximizing business, reforms. Taxpayers would surely be better off are subject to editing, and unpublished
so perhaps the agency is leaving money on the if the post office were as efficient and innova- letters can be neither acknowledged nor
table. But the “last-mile” deal is nonetheless a tive as Amazon. “It’s my emotional support parrot.”
For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or

THE WALL STREET JOURNAL. Tuesday, April 3, 2018 | A15


Degree Inflation and Discrimination Limit Iran’s

By Frederick M. Hess whose current workers do not have
And Grant Addison one. For example, 65% of job post-
In Iraq
ings for executive assistant and sec-
t’s become a common observa- retary positions call for a degree
tion among older white-collar even though only 19% of people cur-
workers: “I wouldn’t have been rently employed in such roles hold a By Zalmay Khalilzad

hired today.” This often degree.
doesn’t have anything to do Degree inflation is caused in part raq holds elections in May, and
with their ability to perform their by employer convenience. College de- Iran is working hard to influence
jobs. Rather, it’s a function of “de- grees can be an expedient shortcut the outcome. Tehran seeks to
gree inflation”—employers demand- to weed out applicants. At the same consolidate its proxy militias that
ing a baccalaureate degree for mid- time, given the legal scrutiny around give it muscle within Iraq and, as
dle-skill jobs that previously did not virtually all other employment tests, with Lebanese Hezbollah, can be used
require one. requiring a college degree is the only across the region. Iran also wants to
Some 61% of employers have re- remaining proxy for aptitude that sustain sectarian, ethnic and political
jected applicants with the requisite doesn’t carry a risk of litigation. But divisions to prevent Iraq’s re-emer-
skills and experience simply because as the Harvard study showed, college gence as a stable, independent power.
they didn’t have a college degree, graduates filling middle-skill posi- Iran sees the U.S. as its key obstacle
according to a 2017 Harvard Busi- tions cost more to employ, have and is eager for the withdrawal of
ness School study. If current trends higher turnover rates, tend to be less U.S. forces from the country.

continue, the authors found, “as engaged, and are no more productive Iran is in a strong position. Teh-
many as 6.2 million workers could than high-school graduates doing the ran-backed Shiite militias, created as
be affected by degree inflation— same job. an emergency measure to confront
meaning their lack of a bachelor’s In theory, reducing degree inflation ISIS, have established themselves in
degree could preclude them from and the bureaucratic restrictions that Baghdad’s belt areas and in Sunni
qualifying for the same job with an- to any selection procedure used for Yet degree inflation has obvious enable it should be an easy win for and some Kurdish regions. In the face
other employer.” employment decisions, including ed- disparate-impact implications. The profit-minded employers and policy of Washington’s passivity, Iran or-
ucational requirements. Employers Harvard report found that groups makers interested in social mobility. chestrated a violent, punitive re-
that require IQ tests, for example, with college graduation rates below In reality, reforming civil-rights law sponse by the Iraqi government and
Could civil-rights laws must use approved tests and justify the national average are dispropor- will require significant political will,
IQ thresholds. tionately harmed by the practice. especially because many businesses
and ‘disparate impact’ State and local laws impose addi- When determining disparate im- seem largely content with the safe in- As Iraqis go to the polls
protect job applicants who tional limits. New York City prohibits pact, enforcement agencies often rely efficiencies of the status quo.
next month, the U.S. needs
employers from discriminating against on the “four-fifths” rule of thumb: If Yet the time seems ripe for out-
haven’t finished college? the unemployed or asking about prior the selection rate for any race, sex or side pressure through litigation and to counter Tehran’s effort
earning history. Twenty-nine states ethnic group is less than four-fifths advocacy. On the left, a thriving cot-
bar public employers from inquiring that of the group with the highest tage industry for social-justice law- at consolidating its power.
The pernicious effects of degree about criminal history, while nine selection rate, disparate impact is suits uses identity-group quotas to
inflation are obvious, as tuition and states prevent private employers from likely. Some 61% of Asians in the la- sue employers for disparate impact.
student debt rise and qualified work- doing the same. Last year the Equal bor force, age 25 and up, have a What if Peter Thiel—who sponsors a the pro-Iranian militias against the
ers arbitrarily lose employment op- Employment Opportunity Commission bachelor’s degree or higher, accord- scholarship that gives recipients Kurds, using the 2017 independence
portunities. But the practice also sued CSX Transportation, a railroad ing to the Bureau of Labor Statistics. $100,000 to skip or leave college and referendum as a pretext. Then, when

flouts federal law. company, because men passed the Just under 40% of whites have de- start a business—took up this mantle Kurdish appeals to the U.S. went un-

Title VII of the Civil Rights Act of company’s applicant physical-fitness grees, compared with 29% of blacks against degree inflation? What if the answered, Iran began to present itself
1964 prohibits employers from dis- tests at a disproportionately higher and 20% of Hispanics. Under the Institute for Justice added federal to the Kurds as their friend. Tehran
criminating on the basis of race, rate than women. four-fifths rule, college-degree re- employment-testing regulations to its offered to facilitate the Kurds’ negoti-
color, religion, sex or national origin. But college degrees are treated
on quirements disproportionately affect occupational-licensing cases? ations with Baghdad to get some pu-
In Griggs v. Duke Power (1971) the differently from other employment white workers when compared with Diplomas are “useful servants,” nitive measures lifted. The result:
Supreme Court unanimously inter- tests. Employers presume that a col- Asians, and black and Hispanic work- Chief Justice Warren Berger wrote in new Iranian importance and reduced
preted this to mean that when mi- lege degree confirms the baseline ers when compared with whites and Griggs, but “they are not to become American influence in the Kurdish re-
nority groups are disproportionately verbal and written skills required for Asians. masters of reality.” It’s time someone gion of Iraq, a former heartland of
us l,

affected—or suffer a “disparate im- many jobs, and colleges are known to Employers also fail the Griggs test brought this common-sense proposi- support for America.
pact”—from the selection process, game admissions criteria to favor mi- by demanding college degrees with- tion back to court. It is not evident that Tehran has
al a
employers must show that any re- nority groups. As a result, college de- out evidence they are necessary for decided on its preferred candidate for
quirements are directly job-related grees have a patina of intellectual ca- the job. In a 2014 survey, Burning Mr. Hess is director of education Iraqi prime minister. Major constitu-
and an accurate predictor of job per- pacity and nondiscrimination—likely Glass Technologies found that em- policy at the American Enterprise In- encies, including the dominant Shiite
ci on

formance. This standard, which Con- why their use by employers has ployers are increasingly requiring stitute. Mr. Addison is AEI’s program Islamists, are divided. Iran’s apparent
gress made explicit in 1991, applies never been legally challenged. bachelor’s degrees for positions manager for education policy. strategy is to support several groups
in the hope that it will be kingmaker
in the bargaining over the next Iraqi

The Theory Behind That Charlottesville Slogan government.

er rs

Tehran at times appears to back

Prime Minister Haider al-Abadi, and
By Abraham Miller of the Immigration and Naturaliza- law, which favored Western Euro- Jewish and Catholic genes were in at times seems to be trying to under-

tion Act of 1965. Mr. MacDonald pean immigration, had become an conflict over immigration policy? mine him. Iran’s Quds Force com-
m e

hen white nationalists and claims that Jewish communal organi- international embarrassment. One of the most significant provi- mander, Qasim Sulaimani, encour-
supremacists gathered in zations led the effort to enact the As early as 1952, President Harry sions of the act allowed chain mi- aged Mr. Abadi and the pro-Iranian
Charlottesville, Va., last law, which eliminated preferential Truman appointed a Commission on gration, in which immigrants spon- militias to form an election coalition.
m rp

summer, they marched with tiki quotas for Western European immi- Immigration and Naturalization, sor family members to come to They did, costing the prime minister
torches and chanted: “The Jews will gration and increased the total num- whose report served as the founda- America. Rep. Michael A. Feighan of a good deal of support from indepen-
not replace us.” Obviously they don’t ber of immigrants. That led to an in- tion for the 1965 act. The report af- Ohio, a conservative Democrat and dent Iraqis and others and undermin-
care for Jews. But what do they crease in non-European immigration. firmed the country’s need for work- Catholic, was responsible for this ing his aspiration to build a broad co-
mean, “replace us”? In Mr. MacDonald’s view, the act ers, but and it was highly critical of measure. He saw chain migration as alition transcending ethnic and
co Fo

Understanding the chant requires started the “replacement” of white promoting family values. sectarian identities. Soon after the
an examination of the work of Kevin Christians by a more ethnically di- The bill passed overwhelmingly, damage had been done, the coalition
B. MacDonald, a 74-year-old psy- verse population. ‘The Jews will not replace with support from 85% of Republi- abruptly ended. Nevertheless, Mr.
chologist and retired professor at It is true that Jewish communal us,’ they chanted. What do cans and 74% of Democrats. Sen. Ed- Abadi’s group should do well because
California State University, Long organizations are major supporters ward Kennedy, a Catholic, was a ma- of his success against ISIS.
Beach. Mr. MacDonald’s theories of multiculturalism. Then again, so they mean, ‘replace us’? jor proponent and legislative Now, instead of disarming, several
about Jews have become the philo- are most mainstream churches, on orchestrator of the bill. President of Iran’s militias want to convert bat-
sophical and theoretical inspiration both sides of the papal divide. Chris- Lyndon Johnson, who belonged to tlefield success and de facto control
for white supremacist and national- tian communal groups loudly extol the foreign-policy problems caused the Disciples of Christ, signed the of many areas into political gain and
ist movements. their commitment to inclusion and by the then-current immigration bill at the Statue of Liberty. Jewish put their own men in the prime minis-
Mr. MacDonald characterizes diversity. policy. The report specifically cited support was not the key to its pas- tership and other key posts. One can-
Jewish behavior in terms of the But Jewish leadership was nei- Radio Moscow’s use of America’s ex- sage. The bill was widely popular— didate is Hadi al-Amiri, an Iraqi who
theory of group evolutionary psy- ther a necessary nor a sufficient clusionary immigration policy to and more so with Republicans, even fought for Iran in the Iran-Iraq war,
chology, based on competition condition for the passage of the spread anti-Americanism in Asia, es- though most Jews, then as now, and who along with his Badr militia

among groups for resources and 1965 immigration law. Rather, a lib- pecially Korea. were Democrats. group has been in the pay of Iran for
survival. Most scholars of evolu- eralizing wave had already swept The 1965 law’s chief sponsors decades. Iran is also supporting the
tionary psychology reject Mr. Mac- the West in the decades after World were Sen. Philip Hart of Michigan Mr. Miller is an emeritus profes- group led by former Prime Minister
Donald’s methods and conclusions. War II, bringing an end to colonial- and Rep. Emanuel Celler. Hart was sor of political science at the Univer- Nouri al-Maliki, who shares the goal

White nationalists and suprema- ism and informing U.S. competition Catholic; Celler had three Jewish sity of Cincinnati and a distin- of disrupting U.S.-Iraqi security coop-
cists embrace him, and he returns with the Soviet Union. In this con- grandparents and one Catholic one. guished fellow with the Haym eration. Tehran is the most opposed
their affection. He edits a website text, America’s 1924 immigration Would Mr. MacDonald say Celler’s Salomon Center. to the group led by Ayad Allawi, a
called Occidental Observer that fo- secular former prime minister with
cuses on “White Identity, Interests strong ties to the Arab world.
and Culture.”
Mr. MacDonald claims that Jew-
ish traits, such as high verbal intelli-
Planned Princesshood To contain the regional danger
posed by aggressive Iranian expan-
sionism, as well as to protect its na-
gence and ethnocentrism, have By Faith Moore health issues and policies, including what fairy-tale princesses mean to lit- tional interests, the U.S. should adopt

evolved to the point that Jews, as a abortion,” she said in a statement to tle girls. Heroines who value physical- a four-pronged approach to Iraq.
group, outcompete non-Jews at the e need a Disney princess Fox News. ity over morality might advance femi- First, the U.S. should do what it
expense of Christian majorities. who’s had an abortion,” Feminist critics have been waging nist ideology, but they’re not can to encourage a level playing field
He further argues that Jews are tweeted a Pennsylvania war on Disney princesses since the princesses. In any fairy tale, the prin- in the Iraqi political process, support
genetically programmed to under- branch of Planned Parenthood last 1990s, and they’re gaining ground. cess signifies the feminine ideal. Her those who share its goals, and not
mine Christian civilization. Intellec- week. Though the tweet was de- Peggy Orenstein’s 2011 best seller, true heart, inner courage and pure continue to let Iran dominate the
tual movements such as multicultur- leted, Planned Parenthood Keystone “Cinderella Ate My Daughter,” called motives are tested but never compro- Iraqi parties. America’s record in this
alism and liberalism serve, in his chief Melissa Reed stands by it. the fairy-tale heroine a symbol of mised. If a Disney princess were de- regard is not good. After Saddam
view, to heighten Jewish advantage “Planned Parenthood believes that “the patriarchal oppression of all picted having an abortion, it wouldn’t Hussein’s overthrow, the U.S. spent
because a Christian majority mired pop culture . . . has a critical role to women.” come across as merely a personal billions a month on the military ef-
in a multicultural society is less play in educating the public and Disney has been listening. In 2016 choice. Rather, it would imply that fort but neglected to help parties that
likely to foster anti-Semitism. sparking meaningful conversations the company launched the Dream Big, having an abortion is an expression of wanted to be independent of Iran’s
Which brings us to his explanation around sexual and reproductive Princess campaign, which recasts Ar- feminine goodness. influence.
iel as a speed-swimming champion, Girls intuitively understand the Second, the U.S. must learn the
Rapunzel as a gymnast and Cinder- ethical symbolism of princesses. In lesson of President Obama’s disas-
ella as a dance prodigy. In an obvious an article for Psychology Today, Su- trous withdrawal and keep sufficient
PUBLISHED SINCE 1889 BY DOW JONES & COMPANY nod to the feminist notion that tradi- san Scheftel, a professor of medical forces in Iraq to maintain substantial
Rupert Murdoch Robert Thomson tional princesses are “damsels in dis- psychology at Columbia, argues that security cooperation. Such a presence
Executive Chairman, News Corp Chief Executive Officer, News Corp
tress,” Disney has edited out the a little girl who loves princesses is provides America with leverage and
Gerard Baker William Lewis
Editor in Chief Chief Executive Officer and Publisher
princesses’ signature inner virtues of casting herself as “the beautiful hero- credibility with Iraqis and regional
Matthew J. Murray Karen Miller Pensiero DOW JONES MANAGEMENT:
integrity, courage, optimism and ine of her own story.” These girls players.
Executive Editor Managing Editor Mark Musgrave, Chief People Officer; heart, and replaced them with femi- aren’t succumbing to an outdated Third, whatever the results in May,
Jason Anders, Chief News Editor; Thorold Barker,
Edward Roussel, Chief Innovation Officer; nist-approved—but ultimately shal- representation of women that needs the U.S. must remain engaged to fos-
Anna Sedgley, Chief Operating Officer
Europe; Elena Cherney, Coverage Planning; low—physical achievement. to be rewritten. They’re tapping into ter a quick formation of a govern-
Andrew Dowell, Asia; Neal Lipschutz, Standards; OPERATING EXECUTIVES: Ariel’s main achievement is no feminine wisdom that has helped ment, prevent Iran from distorting
Meg Marco, Digital Content Strategy; Ramin Beheshti, Product & Technology;
Alex Martin, Writing; Mike Miller, Features & longer her willingness to sacrifice for girls grow into women for thousands the outcome to its benefit, and sup-
Kenneth Breen, Commercial;
Weekend; Shazna Nessa, Visuals; Rajiv Pant, Jason P. Conti, General Counsel; her dreams, but rather her skill as a of years. port the political pacts on which the
Technology; Ann Podd, News Production; Frank Filippo, Print Products & Services; swimmer. Instead of courageously Feminist groups want to reimagine new government will be formed.
Matthew Rose, Enterprise; Michael Siconolfi, Steve Grycuk, Customer Service;
Investigations; Nikki Waller, Live Journalism; standing up to the people holding her Disney princesses in their own image, Fourth, enlist the support of re-
Kristin Heitmann, Chief Commercial Officer;
Stephen Wisnefski, Professional News; Nancy McNeill, Advertising & Corporate Sales; back, Rapunzel is now celebrated for using the princesses little girls love gional allies and partners.
Carla Zanoni, Audience & Analytics Christina Van Tassell, Chief Financial Officer; her ability to use her hair as a lasso. as tools for propaganda. Planned Par- The U.S. must not repeat the mis-
Paul A. Gigot, Editor of the Editorial Page; Jonathan Wright, International Instead of moral strength in the face enthood selling abortion as a femi- take of disengagement that squan-
Daniel Henninger, Deputy Editor, Editorial Page DJ Media Group: of adversity, Cinderella’s claim to nine ideal is the ultimate villainous dered the opportunity to consolidate
fame is now her impeccable ballroom ruse. Like Snow White’s wicked step- Iraq’s democracy after the 2010 elec-
Suzi Watford, Marketing and Circulation; Professional Information Business:
Joseph B. Vincent, Operations; Christopher Lloyd, Head; dancing. If these qualities represent mother, they want to offer girls a poi- tion and precipitated the disastrous
Larry L. Hoffman, Production Ingrid Verschuren, Deputy Head anything other than physical strength sonous idea in a bright, appealing setbacks of 2014.
EDITORIAL AND CORPORATE HEADQUARTERS: and dexterity, the ad campaign offers package.
1211 Avenue of the Americas, New York, N.Y., 10036 no way to know. Mr. Khalilzad was U.S. ambassa-
Telephone 1-800-DOWJONES
All this completely misunderstands Ms. Moore is a writer at PJ Media. dor to Iraq, 2005-07.
For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or

A16 | Tuesday, April 3, 2018 THE WALL STREET JOURNAL.

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© 2018 Dow Jones & Company. All Rights Reserved. * * * ** THE WALL STREET JOURNAL. Tuesday, April 3, 2018 | B1

S&P 2581.88 g 2.23% S&P FIN g 2.13% S&P IT g 2.48% DJ TRANS g 1.98% WSJ $ IDX À 0.01% LIBOR 3M 2.312 NIKKEI (Midday) 21200.77 g 0.88% See more at

GM Scraps a Standard in Sales Reporting

Decision to drop The move by the nation’s highly competitive market,” ers to eventually follow suit, level of sales disclosure. posting record profits.
top auto seller will likely dis- GM sales-operations chief Kurt but the entire industry—in- Around the first of each Ms. Barra and her lieuten-
monthly auto sales rupt the industry’s collective McNeil said in a statement. cluding GM—is expected to re- month, every major auto ants frequently say they won’t
disclosure could attempt to give analysts, econ- GM said it would continue to port March sales Tuesday. maker reports its U.S. sales chase market share by produc-
omists and investors a broad disclose that data at the end Many years ago, auto makers tallies from the prior month, ing too many vehicles only to
obscure broad trends view of one of America’s bed- of each quarter, much like reported sales on a 10-day ba- including a breakdown by increase profit-sapping dis-
rock businesses and a consis- Tesla does. sis but also backed away from brand and nameplate. counts, a frequent practice in
BY MIKE COLIAS tent bellwether for consumer The quarterly reports “will that practice. Some, including GM, pro- the years before GM’s 2009
AND ADRIENNE ROBERTS behavior. make it easier to see how the Large companies in other vide other clues about the re- bankruptcy.
With the exception of Tesla business is performing,” Mr. big sectors have stopped dis- cent health of their busi- Industry watchers rely on
General Motors Co. is Inc. and a few other exotic or McNeil said. Several indepen- closing monthly sales, includ- nesses, such as a spike in monthly sales figures to ana-
abandoning its decades-old niche auto makers, every car dent outlets and government ing several retailers. Target spending on consumer incen- lyze the sector and individual
practice of reporting monthly company discloses detailed agencies are likely to continue Corp. discontinued the prac- tives or deliveries to fleet companies, said IHS Markit
auto sales, saying a 30-day pe- monthly sales figures. estimating monthly sales for tice in 2012. Walmart Inc. companies, both of which can analyst Stephanie Brinley.
riod doesn’t provide an ade- “Thirty days is not enough the industry, or reporting data stopped reporting them a de- dent profits. Still, she agrees with GM’s
quate snapshot of the com- time to separate real sales later in the month. cade ago. GM under Chief Executive premise that the numbers of-
pany’s complex business or trends from short-term fluctu- The move, however, could The auto sector is a rarity Mary Barra has played down ten lack context.
the broader industry. ations in a very dynamic, prompt other large auto mak- among big industries in its the sales scoreboard while Please see GM page B2

Spotify by the Numbers

Initially shunned by the music industry, Spotify now plays a key part
in it, and sits atop all other streaming services.
While Spotify is adding users rapidly, family plans have also driven
down average revenue per user.
Fintech Startup
U.S. music industry revenue*
$15 billion
Subscribers world-wide
100 million
Average revenue/premium user
Moves Toward Listing
BY PETER RUDEGEAIR Last year, GreenSky was in
Digital Ad-supported
AND MAUREEN FARRELL talks to go public through an
Physical Premium
acquisition by CF Corp., a
Streaming 75 6 Financial-technology firm “black-check” company, but the

10 GreenSky LLC has confiden- talks ultimately fizzled, accord-

tially filed paperwork with the ing to a person familiar with
50 4 Securities and Exchange Com- the matter.
mission for a sizable initial While Wall Street investors
on public offering that could come have been wary of LendingClub
25 as soon as this summer, accord- and On Deck Capital, Green-
ing to people familiar with the Sky’s business model has clear
matter. distinctions. Unlike those com-
The Atlanta company, which panies, GreenSky doesn’t make
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0 0 0 operates a lending platform loans directly. It arranges fi-

2000 ’02 ’04 ’06 ’08 ’10 ’12 ’14 ’16 2016 ’17 2016 ’17 that enables retailers, health- nancing of up to $55,000 for
al a
care providers and home con- customers of home-improve-
Spotify will have a dual-class structure that tractors to offer loans to their ment retailers such as Home
Although it is unclear how soon its business will be in the black, the company has
customers, could seek to raise Depot Inc. and over 16,000
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successfully gotten investors to sign on to an unproven business model. gives its founders 80% of the voting control.
$1 billion at a valuation of other merchants and service
€4 billion Market value at IPO roughly $5 billion, some of the providers. A network of banks,
Spotify† Daniel Ek Martin Lorentzon Other
In billions people said.

Share ownership‡ An IPO of GreenSky, backed
Loss by a number of Wall Street
If GreenSky manages
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2 heavyweights, would end the

Alibaba (2014)
8.8% 12.2 79.0 drought in IPOs of financial- to raise $1 billion in
$169.4 technology companies.
Facebook (’12) There is no guarantee Green-
a debut, it would be
m e

0 $81.2 Sky will proceed with an IPO. It in rare company. (’14) Voting power
may do another private share
sale instead of a listing, some
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Snap (’17) 37.0%

$20.0 37.0% 43.5 19.5 the people said.
–2 Twitter (’13) Despite the large amount of including Fifth Third Bancorp,
2013 ’14 ’15 ’16 ’17 $14.4 financing that private investors SunTrust Banks Inc. and Re-
*Data excludes synchronization revenue. †As of March 14. ‡Excludes shares issuable to the executives in the short term, which would increase Spotify's total share count. Note: €1=$1.23 have poured into lending start- gions Financial Corp., fund the
Sources: Recording Industry Association of America (industry revenue); Dealogic (market value at IPO); the company THE WALL STREET JOURNAL. ups, IPOs have been rare in re- loans and hold them on their
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cent years due in part to con- balance sheets.

Music-Industry Foe Is Now ‘Savior’

cerns around rising defaults As a private company,
among their borrowers and in- GreenSky doesn’t release finan-
creased competition. cial metrics, but Moody’s Inves-
And those that have tapped tors Service said in a recent re-
BY MAUREEN FARRELL dorsement for investors in the offering, along with Morgan the public markets have strug- port that the company’s
AND ANNE STEELE Daniel Ek says music-streaming service and a Stanley and Allen & Co. gled. Shares of online lenders projected annual revenue was
his company’s sign of the CEO and founder’s At an investor meeting in LendingClub Corp. and On over $400 million and expected
Days before Spotify Tech- mission is to rare ability to turn even his New York during the run-up to Deck Capital Inc. have declined to increase by more than 20%
nology SA would make its de- help a million most ardent critics into allies. Tuesday’s IPO, Mr. Ek described 86% and 79%, respectively, in the next year. GreenSky is on
but as a publicly traded U.S. recording “Daniel’s true genius as an the company’s mission as the from their IPO prices when track to generate more than
company, Chief Executive Dan- artists ‘live off entrepreneur is his unique abil- “hard work of helping one mil- they debuted in December $200 million in earnings before
iel Ek retweeted Taylor Swift. their art.’ ity to have moved from the dis- lion artists live off their art.” 2014. interest, taxes, depreciation and
In 2014, the singer had rupter of an industry to the With Spotify going public, If GreenSky manages to raise amortization in 2018, people fa-

pulled all her music from Spo- savior of it,” said Gregg Lem- that work will be done under $1 billion in a debut, it would miliar with the matter said.
tify in a dispute over streaming Mr. Ek added a few fire kau, co-head of the investment- Wall Street’s magnifying glass. be in rare company. Since 2015, A successful IPO of GreenSky
revenue. On Thursday, she emojis. banking division at Goldman The 35-year-old Swedish CEO just six U.S.-listed tech compa- could encourage a host of fin-
tweeted: “New video for #Deli- Ms. Swift’s decision to re- Sachs Group Inc., one of the faces the daunting task of mak- nies have raised that much or tech companies that have been

cate at midnight EST tonight. lease a video solely on Mr. Ek’s banks that advised Spotify on ing his company profitable more, according to data pro- weighing public offerings to
Only on @spotify.” Spotify is perhaps the ideal en- its nontraditional initial public Please see SPOTIFY page B4 vider Dealogic. move forward.


SEC Investigates
Once-Thriving Firm The Keynesian Art of Investing in Art
BY JEAN EAGLESHAM close important information A hundred collection is valued at more
AND AARON BACK and left a trail of misstate- years ago this than £70.9 million.
ments behind. week, the That’s an average return
Longfin Corp. took advan- Since Longfin’s December most influen- of 10.9% annually, barely one-
tage of postfinancial-crisis initial public offering, which tial economist tenth of a percentage point
rules designed to create jobs raised $5.7 million, the com- of the 20th below the return on British
and help young companies go pany’s price first rose 13-fold, century began assembling stocks over the same period.
public. But the financial-tech- then fell by 80%, all in less what became one of the best Beneath that spectacular
nology company, which was than four months. In the run- collections of modern art return lie important lessons.
valued at $5.4 billion as re- up to the IPO, the company, then in private hands. The Keynes collection re-
cently as 10 days ago, is now which says it operates com- Every investor hoping to sides today at King’s College
under investigation by the Se- puter platforms for trading on diversify a conventional and the Fitzwilliam Museum
curities and Exchange Com- the Singapore and other stock portfolio with nontraditional in Cambridge. It includes a
mission after it failed to dis- Please see LONGFIN page B2 assets can learn from the few masterpieces by such
collecting career of John leading impressionist, postim-
Maynard Keynes (1883-1946). pressionist and modern art-

INSIDE Wealthy investors often

say they keep about a 10th of
their net worth in art, an-
ists as Paul Cézanne, Georges
Seurat and Pablo Picasso, and
a lot of less noteworthy art.

tiques, fine wines and other Of the 135 works in

collectibles. Research has sug- Keynes’s collection, two ac-
gested that returns on such as- count for more than half its
sets may beat cash, bonds and total value and 10 constitute
even gold over the long term, 91%. Simulating 1,000 ran-
although the costs of trading, domly chosen art portfolios
and holding, them can signifi- sold at auction from 1980

cantly reduce net results. through 2015, Profs. Cham-

The returns on emotional bers, Dimson and Spaenjers
assets aren’t directly compa- John Maynard Keynes’s collection reflects the importance of luck. found returns varied wildly,
rable with those on financial with most severely under-
AUTONOMOUS SINCLAIR DRAWS assets: Dealers, auction houses
and private transactions can
and Elroy Dimson of Judge
Business School at Cam-
In his three decades of
collecting, Keynes paid a to-
performing the stock market.
For investors in art and
CARS LULL MEDIA FIRE price the same work of art at bridge University and Chris- tal of £12,847 for his hold- stocks alike, all this shows
DRIVERS OVER PROMOS drastically divergent prices.
Commissions and markups
tophe Spaenjers of HEC
Paris, have done a service
ings, roughly £600,000
($840,000) today when ad-
how important it is not to
put all your eggs in one bas-
can exceed 20%, often by a lot. by analyzing the financial re- justed for inflation. Based on ket, in case the basket turns
AUTOS, B2 TELEVISION, B3 So three leading finance turns of Keynes’s art collec- appraisals in 2013 by five in- out to be the wrong one.
professors, David Chambers tion over the past century. dependent experts, Keynes’s Please see ZWEIG page B10
For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or

B2 | Tuesday, April 3, 2018 * *** THE WALL STREET JOURNAL.


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

First Cobalt...............B11
Gallagher Group..........B5
Pantera Capital...........A8
Philadelphia Energy
Self-Drive Focus Shifts to Humans
General Electric .......... B3 Two recent fatal crashes of driver remains engaged, while to regulators. hind their rivals if they wait un- General Motors ..... B1,B2 Promus Ventures........B5
cars with varying levels of au- Tesla has developed a series of The companies are pressing til systems are so advanced they
.................. A1,B3,B4,B11 Goldman Sachs Group B1 PT Go-Jek Indonesia .. B4
tonomous-driving technology alerts aimed at keeping hands to develop new services like don’t require human drivers,
Apple......................A1,B4 Grab.............................B4 R are focusing attention on vehi- on the wheel and emphasizes in driverless taxis and automated said Mark Wakefield, the leader
B GreenSky.....................B1 Regions Financial........B1
Guggenheim Securities
cles that vest control in both hu- its manuals that drivers need to long-haul trucking that could of AlixPartners LLP’s automotive
Boeing ....................... B11 S mans and machines. remain alert and responsible for collectively create a business op- practice.
C Sinclair Broadcast Group U.S. investigators are still driving. portunity valued in the trillions So in the meantime, they are
Cambiar Investors......A2 .....................................B3 Concerns about a human of dollars, analysts say. outfitting vehicles with semiau-
Cargill..........................A8 Hamilton Lane............A8 Smithfield Foods........A2
Hess ............................ A2 By Tim Higgins, Mike driver being lulled into compla- GM believes services built tonomous features such as auto-
Caterpillar ................. B11 Spotify Technology.....B1
Home Depot................B1 Spector cency is what led Google to around driverless cars one day matic braking, adaptive cruise
Cheniere Energy........B12 SunTrust Banks .......... B1
J And Mike Colias scrap plans for a semiautono- control and lane-keeping sys-
Chevron.......................A1 T mous system and to focus ef- tems. In some cases they are on
CommVault Systems..B4 JetBlue Airways ......... B3 Telegram ..................... A1 completing their probes of an forts on building a vehicle sys- the cusp of rolling out more ad-
ConocoPhillips.............A1 K Tesla ............. B2,B11,B12 Uber Technologies Inc. self- tem capable of driving without a
In two recent incidents, vanced hands-free driving sys-
CVR Energy...............B12
Tri-Source Pharma......B3
Kraft Heinz ............... B10
Tyson Foods................A2
driving vehicle with a safety op- person at the wheel, an effort a human was at the tems that can handle increas-
L erator behind the wheel that hit now under way at the Waymo ingly complex driving tasks,
LendingClub.................B1 U and killed a pedestrian March 18 unit of Alphabet Inc., also the
wheel and could have such as passing slower cars on
LongFin........................B1 Uber Technologies
in Tempe, Ariz., and of a Tesla parent of Google. Waymo has taken control. the highway, while handing con-
M Inc. Model X sport-utility with pointed to a 2015 regulatory trol back to the driver when the
eBay...........................B11 V
Elliott Management ... B4
Mastercard.........B10,B11 its semiautonomous system en- study that found some drivers computer can’t handle a more
Morgan Stanley..........B1 Vence...........................B5 gaged that collided with a high- took 17 seconds to retake control complicated situation.
Eniac Ventures............B5
Mozido.......................B10 Veritas Capital............B3 way barrier on March 23 near of a vehicle, a duration that could reap more money than its Audi aims to release a new
Exxon Mobil................A1
N Volkswagen.................B2 Mountain View, Calif., fatally in- would have allowed the car to business today, finance chief system in its sedans that would
F Vox Media...................B4
Netflix.........................A2 juring its driver. travel more than a quarter mile Chuck Stevens told analysts in allow drivers to let go of the
Facebook...A1,A8,B4,B11 W
FactSet Research
Nofence.......................B5 But both incidents have a at highway speeds. November. He said a robot taxi wheel and the pedal in traffic
O Waymo........................B2 troubling link, autonomous-vehi- Auto makers, tech companies service could generate 20% to jams and turn their attention to,
FGL Holdings...............B1 On Deck Capital..........B1 X cle specialists say: a human was and regulators contend robot ve- 30% profit margins by 2025, say, their email. Audi is “care-
Fifth Third Bancorp....B1 .......... B10 Xerox ......................... B10 at the wheel and could have hicles promise to ultimately cut several times more than the fully evaluating” consumer ac-
taken control. traffic fatalities, which sur- 8.8% pretax margin it earned ceptance of semiautonomous

INDEX TO PEOPLE “This is what I’ve called the

mushy middle of automation,”
said Bryant Walker Smith, a Uni-
passed 37,000 in the U.S. in
2016, according to the latest
government data. Human error
globally last year.
Few auto makers predict they
will sell fully driverless cars
driving features and is waiting
for better legal and regulatory
clarity before introducing the
A Errington, Amii.........B10 McNeil, Kurt................B1 versity of South Carolina assis- causes 94% of crashes, according soon. Yet, they fear falling be- system, a spokesman said.
Meenavalli, Venkat.....B2 tant professor of law and spe-
Adams, Nick..............B10 F-G
Mell, Trent ................ B11 cialist on autonomous cars,
B Fletcher, Stephen ..... B10
Bejar, Martha..............B4 Gambarini, Simona...B11
Memani, Krishna ...... B12 referring to vehicles with some Tesla Stock Falls 5% target of making 5,000 Model 3
Moran, Chuck..............B4 automation but still a driver at sedans a week by the end of
Beranek, Tim .............. A2 H Musk, Elon..................B2 the wheel. “There will certainly After CEO’s Jokes June, a goal it already postponed
Bezos, Jeff..................B3 be more incidents,” he said. “It’s twice.
Heppel, George ......... B11 N
Brennan, Brian..........B12 Hiroki, Takashi..........B11 dangerous when people feel The Model 3 sedan, which be-


Brinley, Stephanie......B1 Noursalehi, Saum.....B10
Houchois, Philippe......B2 safer than they actually are.” Tesla Inc. shares sank more gan assembly in July, was sup-
I Auto makers are gradually than 5% Monday, suggesting in- posed to help the company reach
Caldwell, Jessica.........B2 Pegg, Janet...............B10 rolling out partially automated vestors were in no laughing mood 500,000 units overall this year,

Icahn, Carl.................B12 Robertson, Julian......B10
Carpenter, Barry.........A2 systems that pass control back over Chief Executive Elon Musk’s about five times what it sold last

Chambers, David.........B1 S and forth between vehicle and bankruptcy jokes as the electric- year. Tesla’s target for the end of
Cook, Tim....................B4 Lance, Ryan.................A2 Setser, Brad..............B12 driver. General Motors Co., vehicle maker grapples with the March was 2,500 Model 3s, a
Copps, Michael............B3 Lane, Wendy...............B4 Spaenjers, Christophe B1 Volkswagen AG’s Audi brand, aftermath of a fatal crash and number the company likely
D-E Liberty, Michael........B10 Sullivan, Holly.............B3
on and others have or plan to intro- prepares this week to release pro- missed, Philippe Houchois, an ana-
Livingston, Scott........B3 W-Z duce systems that allow the duction results. Elon Musk lyst for Jefferies, wrote in a re-
DiCrisci, Robert...........B3
Dimson, Elroy..............B1 M Wallach, D.A...............B4 driver to cede control of the car The drop to $252.48 a share search note Monday.
Dubow, Jay................B10 McCormack, John........B4 Zack, Richard ............ B10 in certain situations, only to re- extended a selloff that has lopped outlook, citing concerns about Options traders are gearing up
Ek, Daniel....................B1 McKinney, Burns.......B11 Zuckerberg, Mark ....... B4 sume command at a moment’s off 36% from the stock since its cash levels. for more turbulence from Tesla. A
us l,

notice. September peak. Cash worries are nothing new measure of expected volatility in
Such automation could make Mr. Musk delivered his April for Tesla, but the stakes have the stock is at the highest it has

al a
able seven-year expansion that driving safer. But some autono- Fools’ tweet (“Tesla Goes Bank- grown as it has taken on more been over the past year, indicating
culminated in a record 17.6 mous-vehicle experts and safety rupt”), in which he joked Tesla than $10 billion in debt. Mr. Musk that there could be more gyra-
million vehicles sold in 2016, advocates worry that as long as failed to raise enough cash in a avoided bankruptcy in 2008, tions ahead. An options measure
ci on

before slipping nearly 2% last the effort is a combination of last-ditch Easter Egg sale, at a which he often talks about pub- called skew—a yardstick of how
Continued from the prior page year. human and machine, the robot time his company’s cash position licly. much it costs to protect against
For example, bad weather March auto sales are ex- assistance could also give driv- is under real scrutiny. Last week, Tesla’s report on first-quarter further stock declines—is near a
or poor availability of a cer- pected to notch a year-over- ers a false sense of confidence to Moody’s Investors Service down- production results this week will yearlong high for Tesla, Trade
tain model because of factory year gain, representing the turn their attention elsewhere. graded Tesla’s credit rating and provide insight into whether the Alert data show.
er rs

down time can distort a year- first such increase of the year. Others, such as GM, say cautioned about the company’s car maker is on track to reach its —Tim Higgins
over-year comparison. “It The results will be boosted by driver monitoring ensures a
doesn’t always paint a clear an additional selling weekend
picture of whether a company compared with last year, and
m e

or given model is doing well mark the start of the spring

or poorly because there is so selling season, traditionally
much variability,” Ms. Brinley the first month that delivers
m rp

said. high volumes.

GM’s decision comes as U.S. Auto makers began to pull
auto sales cool after a remark- back on discounts last month,
and if that continues through
the spring and summer selling
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season, sales could decline

further this year, Ed- analyst Jessica
Caldwell said.
The pressure to hit monthly
sales targets—either internal
goals or forecasts by ana-
lysts—sometimes leads com-
panies to adopt unhealthy
practices, analysts say. For ex-
ample, car companies in the

past have acknowledged that

their dealers sometimes buy
vehicles for their own use to

meet monthend sales targets.

In 2016, Fiat Chrysler Auto-
mobiles NV revised the way it
reports sales amid allegations

by dealers that the Italian-

American auto maker was in-
flating the figures. FCA denied
Chief Executive Mary Barra those claims. Two fatal crashes are drawing attention to vehicles that vest control in both humans and machines. A self-driving Chevy Bolt EV car last year.

Longfin’s share price
dited statements for a Singa-
porean subsidiary, which gen-
erates most of its revenue.
Continued from the prior page An SEC spokeswoman de-
exchanges, failed to disclose $80 clined to comment.
important information or mis- Mr. Meenavalli, who says he
stated facts as basic as the age controls 90% of Longfin
of its controlling shareholder, 60 shares, rejects any suggestion
according to a review of secu- of financial misconduct, saying
rities filings. short sellers, who have bor-
On Monday, the company 40 rowed and sold short almost
disclosed the SEC probe while 15% of the shares available to
also reporting material weak- trade, according to FactSet,


nesses in financial controls. 20 are motivated by greed. “They
The company, which said it is enter into their own fire,” he
cooperating with the probe, said.


said it may not be able to con- Mr. Meenavalli is 48 years
tinue as a going concern. old, according to records he
The shares closed Monday Dec. Jan. Feb. March confirmed in an interview, al-
down 17% at $14.31, above its Source: WSJ Market Data Group though in a May 2017 SEC fil-
IPO price of $5. THE WALL STREET JOURNAL. ing he is listed as 45. In SEC
Longfin went public using a filings, Longfin reported it had
provision of the Jumpstart Our understood we were rational- 20 employees in March 2017.
Business Startups Act of 2012, izing the disclosures [re- The number dropped to two
known as Reg A+. The rules al- quired] but nothing as flimsy the following month, rose to 15
low companies with less than as what appears to have hap- in July, fell to three in Novem-
$1 billion in annual sales to by- pened here,” said James Cox, a ber and was reported as 18 on
pass some accounting and dis- law professor at Duke Univer- Monday. A filing in July 2017
closure requirements imposed sity. “We’re going to look back listed Sarah Altahawi, 23, as a
on bigger companies, but they on Reg A+ and think this was New York-based executive. Ms.
do require accurate reporting. an experiment that didn’t get Altahawi said Monday she is
The other nine Reg A+ IPOs managed very well.” not an officer of the company. Because we’ve covered the We’ve never taken sides in any
that have listed on U.S. ex- The SEC gave Longfin the At its peak value, Longfin story from every angle. war, revolution or election.
changes or been issued over green light based on one was included for eight trading
the counter have lost more month’s audited financial days in the Russell 2000 small- We’ve reported the facts And we always champion
than half their value on aver- statements, which showed that company stock index. Russell whatever the obstacles. the truth.
age, Dealogic data show. 96% of the company’s expenses said it made the decision
Concerns about Longfin were paid to a company con- based on Longfin’s IPO disclo- We’ve always asked the
shine a light on the apparent trolled by Longfin’s owner, sures, which said more shares difficult questions.
ease with which IPOs are being Venkat Meenavalli, an Indian would trade. Its reversal, an-
approved under the Reg A+ re- entrepreneur. The company nounced March 26, sent the
gime, lawyers said. “Everyone also provided two years of au- shares down 41% the next day.
For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or

THE WALL STREET JOURNAL. * * * * Tuesday, April 3, 2018 | B3


Sinclair Promos For Amazon, a Grand Tour

Draw Media Fire Online retailer visits
candidate cities in its
second-home search;
BY JOE FLINT adviser for Common Cause, in a
statement called it “another ex- pitches are restrained
Sinclair Broadcast Group ample of the company masking
Inc., the nation’s largest owner its editorialized content with Don’t get too fancy. Head to
of broadcast TV stations, is un- trusted local broadcasters.” edgier, trendier neighbor-
der fire for requiring news an- In a tweet, Peter Chernin, a hoods. And stay on time.
chors at dozens of its local sta- former senior executive at Fox These are a few of the
tions to read a segment saying News owner News Corp, called tricks cities are deploying in
they were concerned about “the the promotions propaganda and their effort to woo Ama-
troubling trend of irresponsible, suggested that advertisers be
one-sided news stories plaguing urged to boycott Sinclair sta- By Laura Stevens,
our country.” tions. Mr. Chernin, who now Shibani Mahtani
In the promo, the exact lan- heads his own media firm, left and Shayndi Raice
guage for which was provided News Corp in 2009 before the
by the parent company, anchors company split into 21st Century Inc.’s new headquar-


accused national media outlets Fox, which now houses Fox ters, a move the online retailer
of publishing “fake stories with- News and entertainment assets, says could bring nearly 50,000
out checking the facts first.” The and News Corp, the owner of jobs and more than $5 billion
script goes on to say these jour- The Wall Street Journal. in investment over nearly two
nalists are using their platforms The segments and the ensu- decades. Amazon executives
to “push their own personal bias ing backlash are creating tur- have quietly visited more than
and agenda” and are “extremely moil at many Sinclair stations. half of the cities on its list of
dangerous to our democracy.” One news executive at a Sin- 20 finalists, which are vying to
clair station said that Monday host what it calls HQ2, accord-
had been a “toxic day” and ing to people familiar with the
that the news unit was horri- matter. The visits, which Amazon has some trappings of a hot tech company, such as free bananas at its Seattle campus.
Baltimore-based fied about the promotion and started in recent weeks, have
Sinclair is known for having to read it. included Dallas, Chicago, Indi- quirky features of a hotshot “Amazon is working with County—has put $5 billion on
There are concerns that all anapolis and the metropolitan technology company—it lets each HQ2 candidate city to the table.
having conservative the attention around the pro- Washington, D.C., area. employees bring thousands of dive deeper on their proposals In the past, cities have be-
leanings. motions could hurt ratings and Amazon has asked for ses- dogs to its Seattle campus and and share additional informa- come creative to attract or re-
advertising at the Sinclair sta- sions on education and talent, gives out free bananas at two tion about the company’s tain a coveted company. To try
tions, this executive said, add- plus visits to the sites it is campus stands—it doesn’t of- plans,” an Amazon spokesman to keep JetBlue Airways Corp.
ing their own station had an considering, all within a strict fer many of the other trap- said in a written statement. based in New York, the city’s
There was an immediate emergency sales meeting to time frame of two days. The pings associated with working The spokesman confirmed site economic-development corpo-
backlash to the Sinclair promo- discuss potential fallout. rest is up to local officials. at a tech giant, such as free visits were taking place. ration did its research. Offi-
tions from media watchdog Scott Livingston, Sinclair’s As a result, officials of can- meals. Amazon is “a frugal-ass A few of Amazon’s desires cials found out the company
groups, prominent media per- senior vice president of didate cities are scrutinizing company,” said a city official are crystallizing, some of the hosted softball tournaments,

sonalities and news staffers at news, said in the statement, the company’s business prac- working to win the project. people said. The company ap- so they specifically pitched the

Sinclair stations, some of whom “It is ironic that we would be tices to concoct the perfect So, many cities are nixing pears to be leaning toward a airline on a location near a
called the messages propaganda attacked for messages pro- 48-hour-or-less-visit that the fancy hotels, private more urban site. It also wants field. City and state officials
and drew connections between moting our journalistic ini- could win over Amazon. planes and small gifts that are to come to a city prepared to also worked out a joint deal
the segments and many of the tiative for fair and objective on Details of the visits are typical core aspects of a tradi- handle the company’s growth offering JetBlue co-branding
media criticisms expressed by reporting, and for specifically scarce. Amazon, which has tional site visit, said people fa- and the influx of highly paid rights to the slogan “JetBlue,
President Donald Trump. asking the public to hold our said it plans to announce the miliar with the matter. “We employees. New York’s Hometown Air-
Sinclair said in a statement newsrooms accountable. Our winning suitor later this year, were concerned that if we “They believe there is no line”—something that helped
Monday that its promotions local stations keep our audi- has advised HQ2 candidates to went over the top, it would American city that can provide seal the deal.
us l,

serve no political agenda and ences’ trust by staying fo- keep this phase private. push them away,” said a per- for all their needs,” said the Washington, D.C., might
“represent nothing more than cused on fact-based report- Still, people familiar with son involved in one visit. person involved in a site visit. have a leg up, having already
al a
an effort to differentiate our ing and clearly identifying the visits describe whirlwind Instead, they are bringing Another person said the com- hosted Amazon Chief Execu-
award-winning news program- commentary.” trips with Amazon’s economic- in university officials, younger pany expects to have to com- tive Jeff Bezos for visits when
ming from other, less reliable Mr. Livingston didn’t re- development team. Led by people and professionals who promise no matter which loca- he considered acquiring the
ci on

sources of information.” spond to a request for further Holly Sullivan, it examines can speak to talent and tion it selects. Washington Post, which he
The criticisms largely cen- comment. data such as the SAT scores of growth in the area. Officials Some cities are offering fi- now owns. Mr. Bezos also pur-
tered on Sinclair’s efforts to Mr. Trump defended Sin- local high-school students and are adding visits to trendier nancial incentives. New Jersey chased the former Textile Mu-
force its stations to air attacks clair’s promotions in a tweet asks probing questions regard- neighborhoods to highlight the and the city of Newark have seum in Washington for $23
against other news outlets. For- Monday, saying the broad- ing how much talent Amazon draw for younger employees. offered a package valued at $7 million in 2016 and is turning
er rs

mer Federal Communications caster is “far superior to CNN can attract. And cities have even ferried billion, while Maryland— it into a private residence.
Commissioner Michael Copps, a and even more Fake NBC, Municipal officials said that Amazon executives around by where Amazon is considering —Keiko Morris
Democrat who is now a special which is a total joke.” while Amazon has some of the bicycle and boat. a location in Montgomery contributed to this article.
m e

Senators Seek Information

m rp

From Cancer Drug’s Maker

co Fo

BY PETER LOFTUS investigated and held hearings and expenses for the drug and
about steep price increases for any documents that the com-
Three U.S. senators are prescription drugs sold by pany may have provided in re-
seeking more information companies including Valeant sponse to requests from other
from a Florida company that Pharmaceuticals International government entities.
has steadily increased the Inc. and Turing Pharmaceuti- A spokesman for Next-
price of a 40-year-old cancer cals. Ms. Collins is the chair- Source said it would honor the
drug, lomustine, in recent man of the committee, Ms. Senate committee’s request
years. McCaskill is the former rank- for more information.
Sens. Susan Collins (R., ing Democratic member and NextSource boosted the
Maine), Claire McCaskill (D., Ms. Cortez Masto is a member. price again by 20% in February
Mo.) and Catherine Cortez The letter to Mr. DiCrisci to about $922 per capsule, ac-
Masto (D., Nev.) sent a letter cites a December report by cording to price-data tracker

dated March 22 to Tri-Source The Wall Street Journal about Elsevier. NextSource previ-
Pharma LLC Chief Executive the 1,400% increase in the ously said it based the price of
Robert DiCrisci, saying, “We price of the highest dose of lo- lomustine on product-develop-
would like to better under- mustine since NextSource ac- ment costs, regulatory-agency

stand the factors contributing quired rights to the drug in fees and the benefit the treat-
to the rising cost of lomus- 2013, to about $768 per cap- ment delivers to patients.
tine.” Mr. DiCrisci also is CEO sule. The rising cost has put it After the February price in-
of NextSource Biotechnology, out of reach of some patients crease, NextSource said it was
the Tri-Source unit that mar- and generated criticism from expanding a patient-assistance
kets the drug under the brand cancer doctors. program to provide the drug
name Gleostine. The letter asks for company free or at a reduced cost to pa-
The Senate Special Commit- documents and information tients with financial hardship,
tee on Aging has previously since 2011 about sales, profits regardless of insurance status.

GE, Veritas Reach

$1.05 Billion Deal

General Electric Co. has

reached a deal to sell part of
its health-care information-
technology business to private-
equity firm Veritas Capital for
$1.05 billion, the conglomer-
ate’s latest move to streamline
Veritas said Monday that
an affiliate entered into an
agreement to buy GE Health-
care’s value-based care division,
composed of Enterprise Finan-
cial Management, Ambulatory
Care Management and Work-
force Management.
“Our team has significant
knowledge and expertise in the
health-care IT space, and by
operating as a stand-alone
business under Veritas’ owner-
ship, we now have the oppor-
tunity to further revitalize our
product portfolio and pursue
complementary acquisitions,”
said Jon Zimmerman, vice
president and general manager
of value-based care solutions
at GE Healthcare.
—Aisha Al-Muslim
For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or

B4 | Tuesday, April 3, 2018 * * THE WALL STREET JOURNAL.


Zuckerberg Calls
Cook’s Critique
Of Facebook ‘Glib’
BY IMANI MOISE drome and let the companies
that work hard to charge you
Facebook Inc. Chief Execu- more convince you that they
tive Mark Zuckerberg shot actually care more about you.”
back at Apple Inc. CEO Tim Apple and Facebook didn’t
Cook’s critiques of his com- immediately respond to re-
pany, writing them off as “not quests to comment.

aligned with the truth.” The Facebook-Apple dust-up

Last week, Mr. Cook said he reflects fundamental differ-
would never be in the situation ences between their busi-
Mr. Zuckerberg found himself nesses. Facebook generates
in after the Cambridge Analyt- most of its revenue from ads
ica scandal, contrasting Apple’s targeted to reach people based
focus on selling devices with on data about their interests,
the ad-based businesses used while Apple generates two-
by Facebook and Alphabet thirds of its revenue from the
Inc.’s Google, which are built iPhone—a device that ranges in
on user data. He also called for price from $349 to $999.
regulation of data and privacy, The differences have af-
saying that certain technology fected the companies’ approach
Motorcycle-taxi drivers demonstrated in Jakarta asking for government help in dealing with their employers. companies had failed to self- to user privacy. Mr. Cook has
regulate and limit what they sought for years to differenti-

Indonesia Switches on Tech

collect from users. ate Apple’s approach to privacy
In an interview with Vox’s from rivals like Facebook and
Ezra Klein, Mr. Zuckerberg re- Alphabet Inc.’s Google by not-
jected the notion that Facebook ing that Apple doesn’t sell us-
doesn’t care about its users, ers’ data. Facebook and Google,
The government said lowed the latest in a series of an important step last week nies that say their new rivals calling Mr. Cook’s comments
protests by thousands of driv- when it acquired the South- are evading costlier rules. “extremely glib.” Mr. Zucker-
it intends to classify ers last week who wanted east Asian business of U.S. Both companies have ex- berg in the interview, part of a
Apple CEO said he’d
ride-hailing firms as their employment status made ride-hailing company Uber panded rapidly. They offer podcast that was published
more clear, including obliga- Technologies Inc. Competition many services in addition to Monday morning, reiterated never be in a situation
transport companies tions to assist drivers in cases authorities in several coun- transportation, including food Facebook’s goal of building a
of accidents or thefts. tries have said they are on the deliveries. Go-Jek, an Indone- site that connects people
like Cambridge
BY ANITA RACHMAN Go-Jek said Monday that alert for any sign of anticom- sian company, even offers around the world. To reach as Analytica scandal.

the idea to change its status petitive behavior. massage and cleaning services. many people has possible, he

JAKARTA, Indonesia—The from an application to a trans- Transportation Minister The new regulation con- said his company has to lean
Indonesian government said portation company is “a mat- Budi Karya Sumadi told a me- cerns only cars used as online on an advertising model to
that ride-hailing firms Grab ter that requires in-depth dia briefing that the ministry taxis. But the huge numbers of make its product free. on the other hand, collect user
Inc. and PT Go-Jek Indonesia study.” The company said a on would meet the two compa- motorcycle-taxi drivers who Facebook changed its mis- data to sell to advertisers, Mr.
must be registered as trans- thorough study is needed to nies to discuss the transition wear the colorful Grab and Go- sion statement last year and Cook said last week.
portation companies to ensure ensure the growth of a digital from technology middlemen to Jek jackets are also asking for said it would work to help fix a Facebook share s have been
safety and provide job protec- economy in the country. transportation firms in coming government help in dealing “striking decline in the impor- battered since the mid-March
tions for their drivers. Grab didn’t respond to a re- days. Mr. Sumadi said the with the firms, saying their tant social infrastructure of lo- revelation that its user data
us l,

The move on Monday re- quest to comment. change will enable drivers to compensation is inadequate. cal communities. was improperly obtained by
moves the option for the firms The companies dominate “directly communicate with Mr. Sumadi said Monday “There are companies that Cambridge Analytica, a data-
al a
to be designated as technology the ride-hailing market in the companies.” that the ministry will help me- work hard to charge you more, analytics firm whose clients in-
companies, which facilitated Southeast Asia’s largest econ- Indonesia has struggled for diate between the motorcycle- and there are companies that cluded Donald Trump’s 2016
easier use of drivers as part- omy and have made signifi- over two years to regulate taxi drivers and the compa- work hard to charge you less,” presidential campaign.
ci on

ners and sparked resistance cant inroads against estab- ride-hailing companies, issuing nies, but declined their Mr. Zuckerberg said in the in- Through Monday, Facebook
from traditional taxi operators lished taxi companies and the regulations to ensure the request to set floor prices, terview, attributing the quote shares have fallen by roughly
and, increasingly, their own mostly independent-operator safety of drivers and custom- saying that motorcycles aren’t to Inc. CEO Jeff 12% over the past month.
drivers. motorcycle taxis called ojeks. ers and to meet complaints officially recognized as a mode Bezos. “It’s important that we —Tripp Mickle
The new regulations fol- Singapore-based Grab took from traditional taxi compa- of public transport. don’t all get Stockholm syn- contributed to this article.
er rs

Commvault Faces Call SPOTIFY

m e

By Activist for Change Continued from page B1

m rp

while fending off streaming

BY ALLISON PRANG operate more efficiently, exe- competition from tech giants
cute well and ultimately de- such as Apple Inc., Alphabet
Activist investor Elliott liver shareholder value,” the Inc.’s Google and
Management Corp. is push- letter said. Inc. Investors are counting on
co Fo

ing for changes at data-man- Elliott said its board Mr. Ek to innovate and differ-
agement software provider nominees are: Red Bison entiate Spotify’s offerings and
Commvault Systems Inc. and Advisory Group Chief gain a foothold in scaling the
plans to nominate four new Executive Martha Bejar, service onto users’ smart-
directors to the company’s former investment banker phones in new markets.
board. Wendy Lane, former Web- Mr. Ek and other Spotify ex-
Elliott, which disclosed sense CEO John McCormack ecutives declined to be inter-
that it owns a 10.3% stake in- and former Skillsoft CEO viewed for this article, citing,

cluding derivatives in Com- Chuck Moran. among other things, an SEC-

mvault, said in a letter dated Commvault, based in Tin- mandated quiet period ahead of
Monday to the company’s ton Falls, N.J., said in a news its IPO.
board that returns over the release Monday that it “has The music industry’s overall
past handful of years have had initial discussions with revenue declined 40% between
been “particularly disap- Elliott and we go into these 1999 and 2014, but it has re-

pointing” and that issues discussions with an open bounded since then. Mr. Ek,
such as falling operating in- mind.” who speaks softly but directly,
come have hurt the com- Shares of Commvault ad- told potential investors that is Gucci Mane at Spotify’s RapCaviar Live in Atlanta last year. Streaming competition is heating up.
pany’s stock. vanced 11%, or $6.20, to largely because of Spotify.

“Even companies operating $63.40 on the Nasdaq Stock The service, which has 71 to artists, music labels and mer business associate. “Then them.
in less attractive market seg- Market Monday. million paid user accounts, has publishers. there’s this soft-spoken Swede Mr. Wallach said Mr. Ek un-
ments with greater secular The stock has gained 25% paid more than €8 billion Business partners, friends who is a complete tech nerd derstood that the best way to
challenges have managed to over the past year. (about $10 billion) in royalties and associates say Mr. Ek’s coming in to change the indus- woo the industry was with pay-
message about Spotify’s value try.” checks.
proposition for artists and con- Mr. Ek’s plan has been “Daniel really set the tone to
sumers—and his low-key per- straightforward from the be- just put up numbers,” he said.
sona—have stayed consistent ginning: Consumers would pay “And he’s delivered on the

Legal Notices
To advertise: 800-366-3975 or
since he founded the company
in Stockholm in 2006, well be-
fore he signed Spotify’s first
a monthly fee or listen to ads
for access to essentially all the
music in the world. Spotify
Ms. Swift and others in the
music industry have criticized
contract with a music label. would negotiate with labels and the amount of money Spotify
“When I first met him, he pay royalties to stream their doles out to artists. Some musi-
NOTICE OF SALE could completely articulate artists’ songs. But the flag cians still hold out entirely
how this could affect the music hadn’t yet been planted for a from streaming services, and
industry and what the world broadly successful model that others, including Ms. Swift,
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' $!$! # $#" "# %"& $""'%!%# ()**  +, nology and transparency will tify’s free ad-supported tier, from a sofa, is much more ac-
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 $!> 4! !-' "' #  ! !#,' 4 '# &!  $"5 / !"54.%"&!'!#"()** &! !# !# :!5 win over the old-school music which delivers significantly less cessible than most CEOs of
#. !# '$!. -%' '$+ ! '"$# !-'  !# ?/- --5
$  '!  #/! $!  !# !! / &' 0$$!.

'  $" ! - #. #'$ '''' /  / !# ''!' 
'$!. + ' ''+ / .'!%!% !# ''!'
 -% !'
business. He avoids the lime- revenue for the company and highly valued private tech com-
!# 1''!'23 , !-! ' ! !# !'' / +% ! !# "+$ '
 light, sometimes pulling a hat musicians—but attracts many panies. He is known to respond
!# ''!' '# ! $" ''"-'  '' ''$! ,!#  '$! / !# ''!'  !# $$"5
03  ' /  !  ,#$#  :!'  ''
$"5 $'  $-!'' / !# ''!'
$"%  +'  $' !% over his face when walking more users—than the premium to emails and texts at all hours,
%  =!''
'"+''  !#! H"  !! !  $$"!% / !# "!'!% +!'
--!' !#!  +!' '$" + !# ''!' !#! , ! ! ' 0 '  $'
' around his home city. service. People close to Mr. Ek and they say his “egoless” per-
0+3  $!$!  %-! +!,  :!'  ! "!  95
$+3 H" - <"'!  $$"!% + $!$!% B! !
979; & :;; B& 97

' -'!!. %!
“The record-industry execu- say he rarely compromises on sonality and focus on his family
0$3  $!$!  %-! +!,  :!'   / !# /5 A E'E ,  $
9 / !' !!' tives were cultural icons in things he is convinced of, the distinguish him from most U.S.
their own right,” said one for- free tier being chief among tech entrepreneurs.
For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or

THE WALL STREET JOURNAL. Tuesday, April 3, 2018 | B5


Startups Give Livestock Fencing a Jolt

Electric collars track,
guide movement of Round ’Em Up
Livestock numbers have
cattle, other animals; increased over a decade,
welfare fears raised offering an opportunity for
ag-tech startups.
BY MIKE CHERNEY Global livestock
1.6 billion
The fences that crisscross
the vast ranches of the U.S. 1.4
and Australian Outback seem 1.2
like an unlikely candidate for
tech disruption. 1.0 Cattle
But several startups are Sheep
betting that high-tech collars
for cattle, goats and other 0.6 Goats
livestock could render the
fences obsolete, enabling 0.4
farmers to round up animals 0.2
more easily than they do now
with workers, dogs and even 0
helicopters. 2006 ’16
Virtual-fencing startups on Source: Food and Agriculture Organization of
at least three continents are the United Nations
looking to sell the collars, THE WALL STREET JOURNAL.
which track an animal’s loca-
tion and use audio signals and versity professor. The food-
mild electric shocks to direct safety regulator now considers
movement. The companies say Nofence to be legal in Norway,
their products could make according to a representative,
shifting a herd as easy as who didn’t say what had

drawing a line on a smart- changed since the December
phone app. study. At Agersens, Mr. Reilly
Dutch bank Rabobank, New Agersens’s collar emits a sound to keep an animal away from a virtual fence. A shock follows if the animal still approaches the fence. said two of the 30 employees
Zealand fencing company Gal- are animal-welfare scientists.
lagher Group Ltd. and U.S. sprawl over 90 square miles in much as US$155 each—can re- By using the collars, a Reilly said there are regula- Still, some farmers are
venture-capital firms Promus parts of Northern Australia— coup their investment within farmer could in theory more tory barriers in some Austra- likely to take a pass. At
Ventures and Eniac Ventures where ranchers might not see two years. Agersens has met efficiently control where cattle lian states to the collars—such Redleaf Farm, more than an
have invested in some startups their animals for months. its first-year goal of selling graze, allowing grasses to re- as limiting their use to trial hour’s drive from Sydney, Ka-
that see an opportunity in the Farmers need confidence the 5,000 collars and plans to cover and boosting productiv- projects—though Agersens is trina Sparke said she is wor-
billion-plus global cattle popu- units won’t malfunction, while start installing them in April. ity. Bulls and heifers could be discussing them with authori- ried about the poor internet

lation. In the U.S., farmers ranches might require an in- Ian Reilly, the company’s chief ties. The company isn’t aware connection. An outage, she

were expected to spend over ternet or mobile-phone con- executive, hopes eventually to of any barriers in the U.S. and said, would make her unable
$300 million on agricultural nection—a difficulty in some sell 50,000 annually. Canada, he said. to fully control her cattle.
fencing last year, according to remote areas. Cattle learn to be guided by
A farmer could in In Norway, where Nofence “Constantly rearranging
research firm IBISWorld. Some animal-welfare the collar after 24 to 48 hours
on theory use the collars this year sold the latest ver- their boundaries that they
“The potential of it would groups have expressed con- of training, Agersens said. Us- sion of its goat collar, con- can’t physically see would be
be absolutely huge,” said Boyd cerns over similar systems ing the Global Positioning Sys-
to better control cerns about animal welfare quite stressful on the animal,”
Macdonald, general manager that include shock collars with tem to record an animal’s loca- where cattle graze. prompted the Norwegian Food said Ms. Sparke, who looks af-
at Lone Star Farms, which invisible boundaries. People tion, the collar relays that Safety Authority to commis- ter 30 cattle as well as other
us l,

hasn’t been involved in testing for the Ethical Treatment of information wirelessly to a sion a review of electric de- animals. “Happy animals and
the collars and has some 6,000 Animals has said it opposes base station connected to the vices for livestock. The study, more-relaxed animals defi-
al a
cattle on several properties in these systems for dogs, argu- internet. moved together for breeding, published in December, said nitely grow better.”
New Zealand. “It would give ing the devices can cause “se- If an animal walks near a while animals could be kept collars could be more stressful Matthew Pryor, an Austra-
us so much more control of vere anxiety and lead to psy- virtual fence, the collar emits out of environmentally sensi- for livestock—in the learning lia-based ag-tech entrepreneur
ci on

our pastures, of our animals.” chological problems in some a sound to keep it away. If it tive areas. phase—than electric fences who said he isn’t involved in
The collars, however, pose a animals.” still approaches the fence, an Other startups working on are because animals can see any virtual-fencing business,
technical challenge and could The companies working on electric shock is delivered. similar products include a fence and therefore avoid it. said the startups need to con-
face scrutiny from regulators. the livestock collars contend After two or three times, Vence Corp. in California, Hal- Nofence said it has “proper vince farmers that monitoring
Solar-powered batteries used their products are safe. according to Agersens, the an- ter Ltd. in New Zealand and scientific documentation that individual animals is better
er rs

in the collars need to be long- Australia-based Agersens imal learns to associate the Nofence AS in Norway. One the product has no animal than other approaches, includ-
lasting, a crucial necessity on said farmers who purchase its sound with the shock and will challenge is ensuring the welfare issues,” including re- ing using robots to muster
big farms—many of which cattle collars—priced at as change course. products will be legal. Mr. search from a Norwegian uni- cattle.
m e
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B6 | Tuesday, April 3, 2018 THE WALL STREET JOURNAL.

Brilliant minds. Bright ideas. See what’s next, now.


JILL HAGENKORD Chief Medical Officer, COLOR | NAVEEN JAIN Founder and CEO, VIOME | JUSTIN C. SANCHEZ Director, Biological
KARL IAGNEMMA President, NUTONOMY | PAMELA FLETCHER Vice President, Global Electric Vehicle Programs, GENERAL MOTOR

BELCAMPO | SAM KASS Former White House Chef and Senior Policy Advisor for Nutrition; Founder, TROVE; Venture Partner, ACRE

Entrepreneur, SCHWAB FOUNDATION | ISABELLE LEGERON Founder, RAW WINE | JORDAN SALCITO Director of Wine Special Projects,
Contributing Editor, QUARTZ AT WORK; Creator, RADREADS | ERIN LOWRY Author, “Broke Millennial” | DAN SCHULMAN President and
us l,

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Author, “The Happiness Project” and “The Four Tendencies”; Host, “Happier with Gretchen Rubin” podcast | HELAINE OLEN Author,

“Pound Foolish”; Co-Author, “The Index Card” | TONYA RAPLEY Founder, MY FAB FINANCE | JONATHAN NEMAN Co-Founder and CEO,
ci on

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m e

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Partner, ART FIDUCIARY ADVISORS | NANCY SPECTOR Artistic Director and Jennifer and David Stockman Chief Curator, SOLOMON
R. GUGGENHEIM MUSEUM | ZACH LIEBERMAN Artist; Researcher; Educator | LISA PHILLIPS Toby Devan Lewis Director, NEW MUSEUM
| LIA CHAVEZ Artist | GARRY KASPAROV Author, “Deep Thinking: Where Machine Intelligence Ends and Human Creativity Begins”;
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former World Chess Champion | DAVID SIEGEL Co-Chairman, TWO SIGMA INVESTMENTS | GARY MARCUS Professor of Psychology
and Neural Science, NEW YORK UNIVERSITY | KATE CRAWFORD Co-Founder, AI NOW INSTITUTE; Distinguished Research Professor,
| ANGELA ANTONY CEO, SCOUTIBLE | MICHIEL BAKKER Director of Global Programs for Real Estate & Workplace Services, GOOGLE

Deputy Commissioner, Bureau of Wastewater Treatment, NYC ENVIRONMENTAL PROTECTION | RICHARD FLORIDA Director, Martin
Prosperity Institute at the UNIVERSITY OF TORONTO; Global Research Professor, NEW YORK UNIVERSITY; Co-Founder and Senior

LAKES CORPORATION | DANIEL RAUSCH Vice President of Smart Home, AMAZON | JOAQUIN RUIZ Vice President for Innovation,
Thomas R. Brown Chair and Director of Biosphere 2, UNIVERSITY OF ARIZONA | NOA SANTOS Founder and CEO, HOMEPOLISH |
“How to Raise an Adult” and “Real American” | TINA TCHEN Partner, BUCKLEY SANDLER; a leader of the TIME’S UP LEGAL DEFENSE
Global Vice President of L’Oréal ‘s Technology Incubator, L’ORÉAL | YVES BÉHAR Founder and Chief Designer, FUSEPROJECT |
Grandmother and Entrepreneur | HEIDI ZAK Co-Founder and Co-CEO, THIRDLOVE  SEAN GOURLEY Founder and CEO, PRIMER


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THE WALL STREET JOURNAL. Tuesday, April 3, 2018 | B7


Dow Jones Industrial Average S&P 500 Index Nasdaq Composite Index
Last Year ago
Last Year ago
23644.19 t 458.92, or 1.90% Trailing P/E ratio 24.97 21.07 2581.88 t 58.99, or 2.23%
Last Year ago

P/E estimate * 16.24 17.72

Trailing P/E ratio * 24.51 24.75 6870.12 t 193.33, or 2.74% Trailing P/E ratio * 25.21 25.97
High, low, open and close for each High, low, open and close for each P/E estimate * 16.85 18.28 P/E estimate * 19.97 20.38
Dividend yield 2.25 2.36 High, low, open and close for each
trading day of the past three months. trading day of the past three months. Dividend yield 1.95 1.97 Dividend yield 1.04 1.11
All-time high 26616.71, 01/26/18 All-time high 2872.87, 01/26/18 trading day of the past three months.
All-time high: 7588.32, 03/12/18

Current divisor 0.14523396877348

26300 2900 7500
65-day moving average
25500 2825 7300

24700 2750 7100

Session high 23900 2675 6900


Session open Close

23100 2600 6700
Close Open

65-day moving average

65-day moving average
Session low 22300 2525 6500

Bars measure the point change from session's open

21500 2450 6300
Dec. Jan. Feb. Mar. Dec. Jan. Feb. Mar. Dec. Jan. Feb. Mar.
*Weekly P/E data based on as-reported earnings from Birinyi Associates Inc.

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

Latest 52-Week % chg Most-active and biggest movers among NYSE, NYSE Arca, NYSE Amer. Volume, Advancers, Decliners
High Low Close Net chg % chg High Low % chg YTD 3-yr. ann. and Nasdaq issues from 4 p.m. to 6:30 p.m. ET as reported by electronic NYSE NYSE Amer.
Dow Jones trading services, securities dealers and regional exchanges. Minimum Total volume* 912,903,427 9,781,586
Industrial Average 24123.80 23344.52 23644.19 -458.92 -1.90 26616.71 20404.49 14.5 -4.3 10.0 share price of $2 and minimum after-hours volume of 50,000 shares. Adv. volume* 78,616,094 2,824,290
Transportation Avg 10428.00 10084.58 10190.57 -205.99 -1.98 11373.38 8783.74 12.2 -4.0 5.8 Most-active issues in late trading Decl. volume* 826,200,344 6,317,365
Utility Average 696.62 682.10 686.98 -5.65 -0.82 774.47 647.90 -1.5 -5.0 5.2 Volume After Hours Issues traded 3,087 328
Company Symbol (000) Last Net chg % chg High Low Advances 580 101
Total Stock Market 27352.29 26497.33 26766.27 -616.75 -2.25 29630.47 24125.20 9.5 -3.3 7.2
SPDR S&P 500 SPY 27,536.5 257.81 0.34 0.13 263.42 255.60 Declines 2,425 210
Barron's 400 711.13 689.38 695.02 -16.57 -2.33 757.37 610.89 11.8 -2.2 6.8
Energy Transfer Equity ETE 19,337.5 14.25 0.08 0.56 14.25 14.09 Unchanged 82 17
Nasdaq Stock Market Enterprise Pdts Partners EPD 16,888.6 24.49 ... unch. 24.49 24.34 New highs 16 1
Nasdaq Composite 7044.71 6805.96 6870.12 -193.33 -2.74 7588.32 5805.15 16.5 -0.5 12.0 Energy Transfer Partners ETP 11,648.1 16.05 -0.10 -0.62 16.15 16.05 New lows 133 16
6560.96 6322.60 Closing tick 484 20
Nasdaq 100 6390.84 -190.29 -2.89 7131.12 5353.59 17.6 -0.1 14.0 KKR KKR 9,724.2 19.89 ... unch. 19.95 19.89
Closing Arms† 2.46 0.85
Blackstone Group BX 8,796.5 31.37 -0.10 -0.32 32.01 31.36
S&P Block trades* 6,489 118
MPLX MPLX 5,959.1 32.66 ... unch. 32.66 32.65
500 Index 2638.30 2553.80 2581.88 -58.99 -2.23 2872.87 2328.95 9.5 -3.4 7.7

Nasdaq NYSE Arca
Plains All Amer Pipeline PAA 5,198.2 21.44 ... unch. 21.64 21.44
MidCap 400 1877.61 1821.29 1835.31 -43.46 -2.31 1995.23 1681.04 7.4 -3.4 6.4 Total volume*2,367,355,761 375,818,793

SmallCap 600 937.76 911.10 917.24 -21.22 -2.26 979.57 815.62 10.7 -2.0 8.3 Percentage gainers… Adv. volume* 346,888,081 93,508,710
Decl. volume*2,004,403,757 281,624,981
Other Indexes US Foods Holding USFD 140.3 32.74 0.72 2.24 32.74 32.02
Issues traded 3,081 1,365
Russell 2000 1529.14 1482.90 1492.53 -36.90 -2.41
on 1610.71 1345.24 9.0 -2.8 5.9 Range Resources RRC 113.7 13.95 0.21 1.53 13.95 13.73
Advances 580 251
NYSE Composite 12441.85 12107.72 12216.71 -235.35 -1.89 13637.02 11324.53 6.6 -4.6 3.7 Ally Financial ALLY 150.1 26.77 0.35 1.33 26.77 26.40 Declines 2,414 1,097
Value Line 546.67 530.56 534.54 -12.13 -2.22 589.69 503.24 3.6 -4.9 1.4 Kinder Morgan KMI 323.5 15.09 0.19 1.28 15.09 14.85 Unchanged 87 17
NYSE Arca Biotech 4449.42 4246.67 4284.55 -219.68 -4.88 4939.86 3449.61 21.8 1.5 2.9
Sprint Corp. S 248.0 4.91 0.06 1.24 4.91 4.85 New highs 20 5
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New lows 155 40

NYSE Arca Pharma 528.34 513.91 517.47 -11.49 -2.17 593.12 498.46 1.7 -5.0 -3.1 ...And losers
Closing tick 402 62
KBW Bank 106.78 102.77 104.35 -2.15 -2.01 116.52 88.02 13.6 -2.2 12.9 Switch Cl A SWCH 359.5 13.70 -2.15 -13.56 15.99 11.63 Closing Arms† 1.39 0.72
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PHLX§ Gold/Silver
82.69 81.58 82.01 0.89 1.10 93.26 76.42 -3.9 -3.8 6.5 Viacom B VIAB 54.5 29.20 -1.35 -4.42 30.60 29.05 Block trades* 8,824 1,357
PHLX§ Oil Service 135.31 129.67 132.13 -3.56 -2.63 171.55 117.79 -21.3 -11.7 -12.1 VS 2x VIX Short Term TVIX 868.6 10.90 -0.30 -2.68 11.29 10.89 * Primary market NYSE, NYSE American NYSE Arca only.
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PHLX§ Semiconductor 1326.09 1265.25 1277.01 -51.89 -3.90 1445.90 960.01 27.0 1.9 22.8 ProSharesUltVIXST UVXY 328.2 20.67 -0.51 -2.41 21.29 20.67 †(TRIN) A comparison of the number of advancing and declining
25.72 20.44 3.65 37.32 9.14 issues with the volume of shares rising and falling. An
Cboe Volatility 23.62 18.28 90.8 113.9 17.2 Avon Products AVP 661.4 2.64 -0.06 -2.22 2.70 2.64 Arms of less than 1 indicates buying demand; above 1
 Nasdaq PHLX Sources: SIX Financial Information; WSJ Market Data Group indicates selling pressure.

International Stock Indexes Percentage Gainers... Percentage Losers

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Latest YTD
Region/Country Index Close Net chg % chg % chg Latest Session 52-Week Latest Session 52-Week
Company Symbol Close Net chg % chg High Low % chg Company Symbol Close Net chg % chg High Low % chg
World The Global Dow 2989.04 –34.49 –1.14 –3.2 SELLAS Life Sciences SLS 8.65 5.20 150.72 20.40 3.43 -51.2 VirTra VTSI 4.82 -1.48 -23.42 7.36 3.38 128.7
DJ Global Index 387.52 –4.56 –1.16 –2.4
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Seven Stars Cloud Group SSC 2.60 0.47 22.07 7.00 1.26 16.6 SORL Auto Parts SORL 4.99 -1.52 -23.35 9.74 3.59 25.4
DJ Global ex U.S. 262.51 –0.23 –0.09 –1.6 BioLife Solutions BLFS 6.18 1.05 20.47 7.53 2.01 194.3 Alkermes ALKS 45.23 -12.73 -21.96 71.22 44.07 -21.2
Americas DJ Americas 620.47 –13.53 –2.13 –3.4 VS 2x VIX Short Term TVIX 11.20 1.78 18.90 47.19 4.66 -68.4 China Auto Logistics CALI 2.79 -0.66 -19.13 8.77 1.50 51.6
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Brazil Sao Paulo Bovespa 84666.44 –699.13 –0.82 10.8 MediciNova MNOV 12.15 1.93 18.88 14.50 4.40 99.8 SYNNEX SNX 96.80 -21.60 -18.24 141.94 96.06 -12.4
Canada S&P/TSX Comp 15213.45 –153.84 –1.00 –6.1 Innovate Biopharm INNT 32.50 5.12 18.70 32.99 3.43 190.2 Veritiv Corp. VRTV 32.05 -7.15 -18.24 53.25 20.35 -37.2
Mexico S&P/BMV IPC 45826.64 –298.21 –0.65 –7.1 Allena Pharmaceuticals ALNA 13.07 2.05 18.60 15.40 6.13 ... LSC Communications LKSD 14.28 -3.17 -18.17 26.73 11.79 -42.5
Chile Santiago IPSA 4143.38 –29.83 –0.71 –1.6 Boxlight Cl A BOXL 4.76 0.70 17.12 9.17 3.00 ... IZEA IZEA 3.00 -0.66 -18.03 7.85 1.37 -23.5
Closed ProSharesUltVIXST UVXY 21.18 2.65 14.30 87.00 8.52 -67.6 Allied Healthcare Prods AHPI 2.35 -0.50 -17.54 5.25 1.53 14.1
EMEA Stoxx Europe 600 370.87 … –4.7
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Closed Red Violet RDVT 6.95 0.85 13.93 46.40 5.05 ... Comstock Resources CRK 6.06 -1.25 -17.10 10.72 4.01 -32.1
Eurozone Euro Stoxx 373.99 … –3.0
Belgium Bel-20 3857.10 … Closed –3.0 Avid Bioservices CDMO 3.32 0.40 13.70 5.78 2.24 -25.5 LongFin Cl A LFIN 14.31 -2.95 -17.09 142.82 4.69 ...
Denmark OMX Copenhagen 888.52 … Closed –4.2 Velocity VIX Tail RiskETN BSWN 13.85 1.66 13.63 24.95 9.02 -39.4 Alnylam Pharm ALNY 101.18 -17.92 -15.05 153.99 46.90 100.6
France CAC 40 5167.30 … Closed –2.7 Direxion S&P Biotech Bear LABD 41.31 4.85 13.30 120.80 27.10 -62.3 RXi Pharmaceuticals RXII 2.75 -0.47 -14.60 8.50 2.51 -65.7
Germany DAX 12096.73 … Closed –6.4 Forward Pharma ADR FWP 2.44 0.27 12.44 30.00 2.02 -87.6 Rhythm Pharmaceuticals RYTM 17.02 -2.88 -14.47 33.81 16.80 ...
–5.2 UltraPro Shrt Biotech ZBIO 11.75 1.29 12.33 18.36 8.03 -31.3 CymaBay Therapeutics CBAY 11.14 -1.85 -14.24 15.59 3.16 167.1
Israel Tel Aviv 1431.07 –9.02 –0.63
Italy FTSE MIB 22411.15 … Closed 2.6
Netherlands AEX 529.52 … Closed –2.8
Most Active Stocks Volume Movers Ranked by change from 65-day average*
Russia RTS Index 1234.06 –15.35 –1.23 6.9 Volume % chg from Latest Session 52-Week Volume % chg from Latest Session 52-Week
Company Symbol (000) 65-day avg Close % chg High Low Company Symbol (000) 65-day avg Close % chg High Low
South Africa FTSE/JSE All-Share 55474.52 … Closed –6.8
Spain IBEX 35 9600.40 … Closed –4.4 SPDR S&P 500 SPY 157,786 36.7 257.47 -2.16 286.63 232.51 WisdmTr Bloomberg FR TreaUSFR 1,043 8158 25.11 0.02 26.25 24.96
Sweden SX All Share 559.67 … Closed –1.6 Neovasc NVCN 109,561 402.4 0.06 -7.05 1.89 0.05 PwrSh Russ 1000 Equal Wt EQAL 2,081 3200 29.87 -2.13 32.78 27.76
Switzerland Swiss Market 8740.97 … Closed –6.8 Bank of America BAC 85,613 16.8 29.31 -2.27 33.05 22.07 PowerShs Dynamic Leisure PEJ 351 3125 43.35 -2.65 46.77 39.50

–0.8 PwrShrs QQQ Tr Series 1 QQQ 82,286 74.4 155.51 -2.89 175.21 130.38 PowerShares Gl Shrt Tm PGHY 2,032 2076 23.62 0.04 24.63 23.19
Turkey BIST 100 114442.10 –488.12 –0.42
Closed –8.2
VS 2x VIX Short Term TVIX 77,331 99.8 11.20 18.90 47.19 4.66 Regalwood Gl Energy Cl A RWGE 430 1955 9.70 ... 9.80 9.60
U.K. FTSE 100 7056.61 …
U.K. FTSE 250 19460.47 … Closed –6.1 Finl Select Sector SPDR XLF 73,651 17.7 26.96 -2.21 30.33 22.89 PowerSh Dynamic Oil Svs PXJ 873 1601 8.37 -2.22 11.87 7.99
iShares MSCI Emg Markets EEM 70,592 -4.3 47.41 -1.80 52.08 38.71 FT Cnsmr Dsc AlphaDEX FXD 1,483 1464 40.04 -2.41 45.57 35.72

General Electric GE 70,108 -24.9 13.12 -2.67 30.54 12.73 FinTech Acqn II FNTE 496 1452 9.96 0.20 11.76 9.70
Australia S&P/ASX 200 5759.40 … Closed –5.0
Intel INTC 64,708 84.1 48.92 -6.07 53.78 33.23 SPDR Russ 1000 MomentumONEO 275 1206 70.75 -2.44 77.42 67.12
China Shanghai Composite 3163.18 –5.72 –0.18 –4.4
Advanced Micro Devices AMD 64,213 4.1 9.53 -5.17 15.65 9.51 Guggenheim Frontier Mkts FRN 544 1094 16.16 -1.18 16.62 12.77
Hong Kong Hang Seng 30093.38 … Closed 0.6
* Volumes of 100,000 shares or more are rounded to the nearest thousand * Common stocks priced at $2 a share or more with an average volume over 65 trading days of at least
India S&P BSE Sensex 33255.36 286.68 0.87 –2.4 5,000 shares =Has traded fewer than 65 days
Japan Nikkei Stock Avg 21388.58 –65.72 –0.31 –6.0
Singapore Straits Times 3430.76 2.79 0.08 0.8 Track the Markets
South Korea Kospi 2444.16 –1.69 –0.07 –0.9 Compare the performance of selected CURRENCIES & COMMODITIES
Taiwan Weighted 10888.27 –31.22 –0.29 2.3 global stock indexes, bond ETFs,
Thailand SET 1782.28 6.02 0.34 1.6
currencies and commodities at Currencies
Sources: SIX Financial Information; WSJ Market Data Group
U.S.-dollar foreign-exchange rates in late New York trading
US$vs, US$vs,
Mon YTDchg Mon YTDchg
CREDIT MARKETS Country/currency in US$ per US$ (%) Country/currency
Vietnam dong
in US$ per US$ (%)
.00004387 22793 0.4
Argentina peso .0497 20.1340 8.2 Europe
Consumer Rates and Returns to Investor Benchmark
Treasury yield Yields
curve Forex Race Brazil real .3018 3.3132 0.03 Czech Rep. koruna .04847 20.632 –3.0

U.S. consumer rates Selected rates andtoRates

Yield maturity of current bills, Yen, euro vs. dollar; dollar vs. Canada dollar .7743 1.2915 2.7 Denmark krone .1652 6.0550 –2.4
major U.S. trading partners Chile peso .001652 605.30 –1.7 Euro area euro 1.2303 .8128 –2.4
notes and bonds
A consumer rate against its New car loan Ecuador US dollar 1 1 unch Hungary forint .003936 254.08 –1.9
Mexico peso .0548 18.2438 –7.3 Iceland krona .010126 98.76 –4.6
benchmark over the past year 3.75% 15% .1268 7.8869 avg†: 3.67% Uruguay peso .03520 28.4100 –1.4 Norway krone –3.9
Venezuela b. fuerte .00002049600.0001 479504.7 Poland zloty .2921 3.4234 –1.6
Lake Elmo Bank 1.99% 3.00 10
Prime rate s Russia ruble .01741 57.448 –0.4
4.50% Lake Elmo, MN 651-777-8365 Monday Euro Asia-Pacific
t t Sweden krona .1192 8.3894 2.5
2.25 5 Australian dollar .7660 1.3055 1.9
TrustCo Bank 2.37% Switzerland franc 1.0469 .9552 –2.0

4.00 China yuan .1593 6.2765 –3.5 Turkey lira .2517 3.9735 4.7
Orlando, FL 407-422-7129 1.50 0 Hong Kong dollar .1274 7.8486 0.5 Ukraine hryvnia .0377 26.4915 –5.9

One year ago

3.50 Sunshine Savings Bank 2.49% 0.75 India rupee .01535 65.130 2.0 UK pound 1.4045 .7120 –3.8
New car loan –5 Indonesia rupiah .0000727 13755 2.0
Tallahassee, FL 850-219-7200 s Middle East/Africa
3.00 0.00 WSJ Dollar index Japan yen .009442 105.91 –6.0
UniBank for Savings 2.49% –10 Bahrain dinar 2.6518 .3771 unch
Kazakhstan tenge .003130 319.47 –4.0
Whitinsville, MA 800-578-4270 1 3 6 1 2 3 5 710 30 2017 2018
Egypt pound .0565 17.6890 –0.5
2.50 Macau pataca .1236 8.0906 0.6
month(s) years Israel shekel .2835 3.5268 1.4
AM J J A S ON D J FMA MainSource Bank 2.65% Malaysia ringgit .2589 3.8620 –4.9 Kuwait dinar 3.3358 .2998 –0.6
Brookville, IN 765-647-3591 maturity New Zealand dollar .7214 1.3862 –1.7
2017 2018 Oman sul rial 2.5987 .3848 –0.04
Sources: Ryan ALM; Tullett Prebon; WSJ Market Data Group Pakistan rupee .00864 115.725 4.6 Qatar rial .2746 3.641 –0.2
Yield/Rate (%) 52-Week Range (%) 3-yr chg Philippines peso .0191 52.299 4.7 Saudi Arabia riyal .2666 3.7503 ...
Interest rate Last (l)Week ago Low 0 2 4 6 8 High (pct pts)
Corporate Borrowing Rates and Yields Singapore dollar .7620 1.3124 –1.9 South Africa rand .0844 11.8454 –4.2
Federal-funds rate target 1.50-1.75 1.50-1.75 0.75 l 1.50 1.50 South Korea won .0009459 1057.16 –0.9
Yield (%) 52-Week Total Return (%)
Sri Lanka rupee .0064421 155.23 1.1 Close Net Chg % Chg YTD%Chg
Prime rate* 4.75 4.75 4.00 l 4.75 1.50 Bond total return index Close Last Week ago High Low 52-wk 3-yr
Taiwan dollar .03431 29.143 –1.8 WSJ Dollar Index 83.76 0.01 0.01 –2.58
Libor, 3-month 2.31 2.29 1.15 l 2.31 2.04 Treasury, Ryan ALM 1442.297 2.588 2.678 2.736 1.818 0.235 0.245 Thailand baht .03202 31.230 –4.2 Sources: Tullett Prebon, WSJ Market Data Group
Money market, annual yield 0.35 0.35 0.25 l 0.36 -0.07 10-yr Treasury, Ryan ALM 1691.196 2.732 2.843 2.943 2.058 –1.122 –0.533
Five-year CD, annual yield 1.66 1.66 1.29 l 1.66 0.17
DJ Corporate 373.149 3.694 3.799 3.814 2.879 2.105 2.055
Commodities Monday 52-Week YTD
30-year mortgage, fixed† 4.39 4.45 3.73 l 4.49 0.55 Pricing trends on someClose
raw materials, or commodities
Net chg % Chg High Low % Chg % chg
Aggregate, Barclays Capital 1911.160 3.110 3.190 3.230 2.380 0.936 1.064
15-year mortgage, fixed† 3.85 3.92 2.99 l 3.95 0.65
High Yield 100, Merrill Lynch n.a. n.a. 6.287 n.a. n.a. n.a. n.a. DJ Commodity 625.96 -5.11 -0.81 645.87 532.01 11.44 0.09
Jumbo mortgages, $424,100-plus† 4.67 4.73 4.21 l 4.96 0.32
Fixed-Rate MBS, Barclays 1941.840 3.300 3.370 3.410 2.660 –0.348 0.728 TR/CC CRB Index 193.38 -1.98 -1.02 200.52 166.50 4.80 -0.25
Five-year adj mortgage (ARM)† 4.14 4.20 3.20 l 4.50 0.76
Muni Master, Merrill n.a. n.a. 2.502 n.a. n.a. n.a. n.a. Crude oil, $ per barrel 63.01 -1.93 -2.97 66.14 42.53 25.42 4.29
New-car loan, 48-month 3.67 3.64 2.85 l 3.67 0.70 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 793.080 6.016 6.094 6.104 5.279 3.177 5.157 Natural gas, $/MMBtu 2.683 -0.050 -1.83 3.63 2.55 -14.23 -9.14
banks.† Excludes closing costs. Gold, $ per troy oz. 1342.10 19.30 1.46 1362.40 1208.60 7.30 2.74
Sources: SIX Financial Information; WSJ Market Data Group; Sources: J.P. Morgan; Ryan ALM; S&P Dow Jones Indices; Barclays Capital; Merrill Lynch

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B8 | Tuesday, April 3, 2018 THE WALL STREET JOURNAL.


Futures Contracts Open

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

Metal & Petroleum Futures Natural Gas (NYM)-10,000 MMBtu.; $ per MMBtu. Cattle-Feeder (CME)-50,000 lbs.; cents per lb. Dec 97.5050 97.5400 97.4900 97.5300 .0250 2,052,187
May 2.737 2.759 2.650 2.683 –.050 395,202 April 132.675 t 130.950 131.875 –1.450
133.975 10,514 Dec'19 97.2000 97.2550 97.1850 97.2400 .0250 2,202,893
Contract Open
June 2.780 2.802 2.698 2.732 –.046 99,107 May 133.425 t 131.600 132.375 –1.650
134.700 21,396
Open High hi lo Low Settle Chg interest
July 2.834 2.853 2.751 2.787 –.045 159,037 Cattle-Live (CME)-40,000 lbs.; cents per lb. Currency Futures
Copper-High (CMX)-25,000 lbs.; $ per lb. Sept 2.837 2.855 2.758 2.794 –.039 103,712 April 113.775 114.800 t 112.200 112.400 –1.350 38,388
April 3.0450 3.0610 3.0325 3.0405 0.0215 2,415 June 102.350 103.825 t 100.775 100.950 –1.625 159,543 Japanese Yen (CME)-¥12,500,000; $ per 100¥
Oct 2.850 2.869 2.772 2.808 –.038 132,416
May 3.0480 3.0725 3.0370 3.0500 0.0245 147,163 Hogs-Lean (CME)-40,000 lbs.; cents per lb. April .9411 .9472 .9411 .9456 .0050 907
Jan'19 3.096 3.113 3.035 3.067 –.028 72,178
Gold (CMX)-100 troy oz.; $ per troy oz. April 56.500 56.700 t 54.250 54.275 –2.975 21,858 June .9454 .9511 .9440 .9494 .0050 145,846
April 1327.00 1344.20 1324.70 1342.10 19.30 2,629 June 75.025 75.350 73.550 73.550 –3.000 97,364
Agriculture Futures Canadian Dollar (CME)-CAD 100,000; $ per CAD
June 1330.70 1349.20 1329.00 1346.90 19.60 374,794 Lumber (CME)-110,000 bd. ft., $ per 1,000 bd. ft. April .7765 .7768 .7732 .7732 –.0022 224
Aug 1336.30 1355.10 1335.10 1352.90 19.60 53,604 Corn (CBT)-5,000 bu.; cents per bu. May 518.00 519.40 512.00 512.70 –3.00 5,277
Oct 1346.20 1360.00 1345.00 1359.00 19.70 7,363 June .7769 .7785 .7735 .7741 –.0022 118,210
May 389.25 392.50 387.00 387.25 –.50 598,409 July 506.00 507.00 499.60 500.80 –4.60 935
Dec 1348.70 1367.50 1348.70 1365.40 19.60 47,584 July 397.25 401.00 s 395.50 395.75 –.50 507,035 British Pound (CME)-£62,500; $ per £
Milk (CME)-200,000 lbs., cents per lb. April 1.4062 1.4074 1.4034 1.4049 .0027 1,057
Feb'19 1359.40 1373.20 1359.40 1371.80 19.70 2,561 Oats (CBT)-5,000 bu.; cents per bu. March 14.23 14.23 14.21 14.22 –.01 4,220
Palladium (NYM) - 50 troy oz.; $ per troy oz. May 226.50 233.00 226.50 231.75 10.00 4,492 June 1.4064 1.4122 1.4062 1.4085 .0027 172,073
May 14.30 14.35 14.20 14.30 .03 3,421
June 944.85 952.70 t 924.30 927.50 –16.30 22,253 July 235.75 241.75 235.75 241.00 7.25 1,514 Swiss Franc (CME)-CHF 125,000; $ per CHF
Soybeans (CBT)-5,000 bu.; cents per bu. Cocoa (ICE-US)-10 metric tons; $ per ton.
Sept 944.10 947.00 t 921.35 923.05 –15.60 1,400 May 2,592 2,647 s 2,546 2,635 79 103,853 June 1.0541 1.0563 1.0521 1.0539 .0025 46,819
Platinum (NYM)-50 troy oz.; $ per troy oz. May 1045.25 1060.50 1035.25 1035.50 –9.25 344,891 Australian Dollar (CME)-AUD 100,000; $ per AUD
July 1056.00 1071.25 1046.25 1046.25 –9.25 257,000 July 2,602 2,675 s 2,576 2,669 85 76,424
April 934.30 936.20 930.00 930.70 3.40 214 Coffee (ICE-US)-37,500 lbs.; cents per lb. April .7686 .7691 .7654 .7652 –.0023 1,443
July 936.10 944.50 935.00 936.50 3.90 73,102
Soybean Meal (CBT)-100 tons; $ per ton.
May 384.00 389.70 377.00 377.30 –6.70 185,298 May 118.70 119.10 t 116.15 116.40 –1.75 138,471 May .7689 .7689 .7652 .7653 –.0023 699
Silver (CMX)-5,000 troy oz.; $ per troy oz. July 386.30 392.10 380.10 380.40 –5.90 126,886 July 120.80 121.10 t 118.25 118.50 –1.70 61,198 June .7691 .7696 .7650 .7653 –.0023 104,648
April 16.470 16.580 16.470 16.627 0.404 350 Sugar-World (ICE-US)-112,000 lbs.; cents per lb. July t
Soybean Oil (CBT)-60,000 lbs.; cents per lb. .7655 .7684 .7654 .7655 –.0023 136
May 16.300 16.680 16.300 16.672 0.404 153,449
May 32.03 32.24 31.90 32.04 .17 224,146 May 12.33 12.55 12.27 12.52 .17 395,394 Sept .7687 .7693 .7659 .7658 –.0023 757
Crude Oil, Light Sweet (NYM)-1,000 bbls.; $ per bbl. July 32.22 32.50 32.17 32.30 .17 129,061 July 12.43 12.65 12.38 12.63 .17 261,222 Dec .7661 .7687 t .7661 .7664 –.0023 386
May 65.04 65.42 62.80 63.01 –1.93 490,954 Rough Rice (CBT)-2,000 cwt.; $ per cwt. Sugar-Domestic (ICE-US)-112,000 lbs.; cents per lb.
June 64.96 65.35 62.80 62.99 –1.88 358,615
Mexican Peso (CME)-MXN 500,000; $ per MXN
May 1237.50 1246.00 1227.50 1231.00 –4.50 5,422 May 24.45 24.45 t 24.45 24.45 –.05 3,188
July 64.66 65.03 62.53 62.72 –1.82 163,644 June .05430 .05437 .05384 .05395 –.00036 205,979
July 1253.00 1255.00 1245.50 1248.00 –4.50 1,561 July 24.90 24.90 t 24.90 24.90 –.08 2,604
Sept 63.53 63.95 61.55 61.75 –1.73 179,544 Wheat (CBT)-5,000 bu.; cents per bu. Euro (CME)-€125,000; $ per €
Cotton (ICE-US)-50,000 lbs.; cents per lb. April 1.2333 1.2357 1.2298 1.2312 .0010 1,971
Dec 61.94 62.36 60.12 60.33 –1.58 260,059 May 454.25 457.25 445.75 446.25 –4.75 224,406 May 81.80 82.71 80.92 80.97 –.49 111,193
Dec'19 57.42 57.69 55.88 56.14 –1.23 137,544 July 473.00 474.00 463.00 463.50 –5.00 139,410 June 1.2388 1.2414 1.2349 1.2368 .0010 479,648
July 82.10 82.88 81.24 81.27 –.53 75,185
NY Harbor ULSD (NYM)-42,000 gal.; $ per gal. Wheat (KC)-5,000 bu.; cents per bu. Orange Juice (ICE-US)-15,000 lbs.; cents per lb.
May 2.0283 2.0415 1.9779 1.9802 –.0408 134,825 May 473.50 476.25 466.75 467.50 .25 105,820
June 2.0256 2.0386 1.9758 1.9777 –.0413 78,706 July 497.75 497.75 486.00 486.75 .50 87,026
May 141.20 142.00 137.45 139.20 –1.90 9,287 Index Futures
July 141.50 142.20 138.30 140.10 –1.45 2,178
Gasoline-NY RBOB (NYM)-42,000 gal.; $ per gal. Wheat (MPLS)-5,000 bu.; cents per bu. Mini DJ Industrial Average (CBT)-$5 x index
May 2.0259 2.0331 1.9629 1.9661 –.0545 162,803 May 580.25 583.50 t 572.50 573.50 –5.00 30,947 June 24097 t 23306
24147 23552 –595 98,611
June 2.0305 2.0378 1.9685 1.9714 –.0536 75,658 July 589.00 592.50 t 581.50 582.50 –4.00 14,266 Interest Rate Futures
Sept 24140 t 23352
24140 23583 –595 645
Treasury Bonds (CBT)-$100,000; pts 32nds of 100% S&P 500 Index (CME)-$250 x index
June 146-090 147-030 145-310 146-240 4.0 782,191 June 2636.90 2641.00 2553.50 2575.00 –68.00 54,904

Cash Prices | Monday, April 02, 2018

Sept 145-240 146-030 145-200
Treasury Notes (CBT)-$100,000; pts 32nds of 100%
145-270 6.0 80 Mini S&P 500 (CME)-$50 x index
June 2635.00 2641.50 2552.00 2575.00 –68.00 2,887,303
June 121-010 121-120 120-295 121-085 4.0 3,467,962
These prices reflect buying and selling of a variety of actual or “physical” commodities in the marketplace— Sept 121-005 121-005 121-000 121-010 4.5 497
Sept 2639.00 2645.75 2556.75 2579.00 –68.75 65,324
separate from the futures price on an exchange, which reflects what the commodity might be worth in future Mini S&P Midcap 400 (CME)-$100 x index
5 Yr. Treasury Notes (CBT)-$100,000; pts 32nds of 100%
June 1880.00 1880.80 1821.60 1835.60 –47.50 79,500
months. June 114-120 114-207 114-102 114-182 3.5 3,420,133
Monday Monday Monday 2 Yr. Treasury Notes (CBT)-$200,000; pts 32nds of 100% Mini Nasdaq 100 (CME)-$20 x index
June 106-090 106-127 106-087 106-120 2.2 1,939,481 June 6557.0 6588.5 6326.5 6393.3 –200.8 241,087
(U.S.$ equivalent) Closed SoybeanMeal,Cent IL,rail,ton48%-u 380.80
Energy 30 Day Federal Funds (CBT)-$5,000,000; 100 - daily avg. Sept 6593.3 6617.5 6358.8 6423.8 –203.3 8,535
Coins,wholesale $1,000 face-a 12276 Soybeans,No.1 yllw IL-bp,u 9.8650
April 98.323 98.325 98.320 98.325 … 360,906 Mini Russell 2000 (ICE-US)-$100 x index
Propane,tet,Mont Belvieu-g 0.7731 Other metals Wheat,Spring14%-pro Mnpls-u 7.3100
Jan'19 97.860 97.885 97.845 97.875 .015 297,680 June 1528.80 1532.80 1482.60 1492.20 –39.90 8,868
Butane,normal,Mont Belvieu-g 0.8651 LBMA Platinum Price PM *Closed Wheat,No.2 soft red,St.Louis-bp,u 4.4950
10 Yr. Del. Int. Rate Swaps (CBT)-$100,000; pts 32nds of 100% Mini Russell 1000 (ICE-US)-$100 x index
NaturalGas,HenryHub-i 2.720 Platinum,Engelhard industrial 940.0 Wheat - Hard - KC (USDA) $ per bu-u 4.5750
June 94.750 95.156 s 94.609 95.047 .141 29,226 June 1456.10 1456.10 t 1417.90 1431.30 –36.50 26
NaturalGas,TranscoZone3-i 2.630 Platinum,Engelhard fabricated 1040.0 Wheat,No.1soft white,Portld,OR-u 5.5750 1 Month Libor (CME)-$3,000,000; pts of 100% U.S. Dollar Index (ICE-US)-$1,000 x index
NaturalGas,TranscoZone6NY-i 2.750 Palladium,Engelhard industrial 956.0 April
Food 98.1000 98.1025 98.1000 98.1025 … 4,096 June 89.68 89.81 89.41 89.71 –.11 30,704
NaturalGas,PanhandleEast-i 2.290 Palladium,Engelhard fabricated 1056.0 Eurodollar (CME)-$1,000,000; pts of 100% Sept 89.16 89.38 89.13 89.29 –.10 1,008
NaturalGas,Opal-i 1.950 Aluminum, LME, $ per metric ton *Closed Beef,carcass equiv. index April 97.7075 97.7150 97.7025 97.7125 .0025 290,881

NaturalGas,MarcellusNE PA-i 2.330 Copper,Comex spot choice 1-3,600-900 lbs.-u 194.55 June 97.6950 97.7150 97.6900 97.7100 .0100 1,764,493
3.0405 Source: SIX Financial Information
NaturalGas,HaynesvilleN.LA-i 2.570 select 1-3,600-900 lbs.-u 184.97

Iron Ore, 62% Fe CFR China-s 65.4
Coal,C.Aplc.,12500Btu,1.2SO2-r,w 63.000 Broilers, National comp wghtd-u,w 1.0859
Shredded Scrap, US Midwest-s,m 366
Butter,AA Chicago 2.2200
Bonds |
Coal,PwdrRvrBsn,8800Btu,0.8SO2-r,w 12.400 Steel, HRC USA, FOB Midwest Mill-s 873
Cheddar cheese,bbl,Chicago 144.50
Metals Fibers and Textiles Cheddar cheese,blk,Chicago 153.00
Tracking Bond Benchmarks
Gold, per troy oz
Engelhard industrial
Engelhard fabricated
Burlap,10-oz,40-inch NY yd-n,w
Cotton,1 1/16 std lw-mdMphs-u
Cotlook 'A' Index-t
on Milk,Nonfat dry,Chicago lb.
Cocoa,Ivory Coast-w
n.a. Return on investment and spreads over Treasurys and/or yields paid to investors compared with 52-week
Handy & Harman base 1335.25
Coffee,Colombian, NY n.a. highs and lows for different types of bonds
Hides,hvy native steers piece fob-u 65.000 Eggs,large white,Chicago-u 2.6550
Handy & Harman fabricated 1482.12 Total Total
us l,

Wool,64s,staple,Terr del-u,w 5.87 Flour,hard winter KC 15.10 return YTD total return YTD total
LBMA Gold Price AM *Closed Yield (%) Yield (%)
Grains and Feeds Hams,17-20 lbs,Mid-US fob-u n.a. close return (%) Index Latest Low High close return (%) Index Latest Low High
LBMA Gold Price PM *Closed
Hogs,Iowa-So. Minnesota-u 55.03
Krugerrand,wholesale-e Mortgage-Backed Bloomberg Barclays
al a

1397.03 Barley,top-quality Mnpls-u n.a. Broad Market Bloomberg Barclays

Pork bellies,12-14 lb MidUS-u 1.3341
Maple Leaf-e 1410.47 Bran,wheat middlings, KC-u 87 Pork loins,13-19 lb MidUS-u 0.8707 1911.16 -1.7 U.S. Aggregate 3.110 2.380 3.230 1941.84 -2.3 Mortgage-Backed 3.300 2.660 3.410
American Eagle-e 1410.47 Corn,No. 2 yellow,Cent IL-bp,u 3.4900 Steers,Tex.-Okla. Choice-u 119.00
1929.41 -1.2 Ginnie Mae (GNMA) 3.290 2.630 3.410
ci on

Mexican peso-e 1627.62 Corn gluten feed,Midwest-u,w 108.8 U.S. Corporate Indexes Bloomberg Barclays
Steers,feeder,Okla. City-u,w 162.50
Austria crown-e 1319.70 Corn gluten meal,Midwest-u,w 520.0
Austria phil-e Fats and Oils 2736.30 -2.3 U.S. Corporate 3.760 3.030 3.860 1132.36 -2.8 Fannie mae (FNMA) 3.290 2.670 3.410
1410.47 Cottonseed meal-u,w 320
Silver, troy oz. Hominy feed,Cent IL-u,w 98 Corn oil,crude wet/dry mill-u,w 28.0000 2582.79 -1.4 Intermediate 3.460 2.530 3.550 1747.44 -2.7 Freddie Mac (FHLMC) 3.310 2.680 3.420
Engelhard industrial 16.6300 Meat-bonemeal,50% pro Mnpls-u,w 295 Grease,choice white,Chicago-h 0.2200 3780.21 -4.0 Long term 4.390 3.990 4.530 n.a. n.a. Muni Master n.a. n.a. n.a.
Engelhard fabricated 19.9560 Oats,No.2 milling,Mnpls-u 2.6925 Lard,Chicago-u n.a.
Handy & Harman base 16.6050 Rice, Long Grain Milled, No. 2 AR-u,w 25.75 Soybean oil,crude;Centl IL-u 0.3039 558.37 -1.8 Double-A-rated 3.220 2.470 3.320 n.a. n.a. 7-12 year n.a. n.a. n.a.
er rs

Handy & Harman fabricated 20.7560 Sorghum,(Milo) No.2 Gulf-u 8.2988 Tallow,bleach;Chicago-h 0.2475
707.16 -2.1 Triple-B-rated 4.030 3.340 4.120 n.a. n.a. 12-22 year n.a. n.a. n.a.
LBMA spot price Closed Tallow,edible,Chicago-u n.a.
High Yield Bonds Merrill Lynch n.a. n.a. 22-plus year n.a. n.a. n.a.
KEY TO CODES: A=ask; B=bid; BP=country elevator bids to producers; C=corrected; E=Manfra,Tordella & Brooks; G=ICE; H=Hurley Brokerage; I=Natural Gas Intelligence; n.a. n.a. High Yield Constrained n.a. n.a. n.a. Global Government J.P. Morgan†
M=monthly; N=nominal; n.a.=not quoted or not available; R=SNL Energy; S=Platts-TSI; T=Cotlook Limited; U=USDA; W=weekly, Z=not quoted. *Data as of 3/30
m e

Source: WSJ Market Data Group n.a. n.a. Triple-C-rated n.a. n.a. n.a. 544.72 0.1 Global Government 1.480 1.300 1.650

n.a. n.a. High Yield 100 n.a. n.a. n.a. 757.51 0.4 Canada 2.120 1.570 2.340
m rp

n.a. n.a. Global High Yield Constrained n.a. n.a. n.a. 375.95 1.5 EMU§ 1.036 0.956 1.311
Borrowing Benchmarks | n.a. n.a.
Europe High Yield Constrained n.a. n.a. n.a. 716.19 0.8 France 0.820 0.690 1.080

Money Rates April 2, 2018 U.S Agency Bloomberg Barclays 508.49 0.2 Germany 0.520 0.210 0.740
1630.48 -0.5 U.S Agency 2.540 1.690 2.650 290.02 0.5 Japan 0.370 0.340 0.460
Key annual interest rates paid to borrow or lend money in U.S. and international markets. Rates below are a
1458.17 -0.3 2.430 1.490 2.530
co Fo

guide to general levels but don’t always represent actual transactions. 10-20 years 562.25 0.3 Netherlands 0.610 0.390 0.830
3339.83 -1.4 20-plus years 3.140 2.730 3.400 933.29 0.3 U.K. 1.530 1.340 1.830
Week —52-WEEK— Week —52-WEEK—
Inflation Latest ago High Low Latest ago High Low 2427.53 -1.5 Yankee 3.420 2.610 3.500 793.08 -1.8 Emerging Markets ** 6.016 5.279 6.104
Feb. index Chg From (%)
level Jan. '18 Feb. '17 Britain 0.50 0.50 0.50 0.25 Treasury bill auction *Constrained indexes limit individual issuer concentrations to 2%; the High Yield 100 are the 100 largest bonds † In local currency § Euro-zone bonds
** EMBI Global Index Sources: Merrill Lynch; Bloomberg Barclays; J.P.Morgan
Australia 1.50 1.50 1.50 1.50 4 weeks 1.705 1.720 1.720 0.695
U.S. consumer price index 13 weeks 1.740 1.760 1.780 0.790
All items 248.991 0.45 2.2 Overnight repurchase
Core 255.783 0.45 1.8
26 weeks 1.905 1.895 1.950 0.910
Global Government Bonds: Mapping Yields
U.S. 2.18 1.83 2.18 0.76
Secondary market Yields and spreads over or under U.S. Treasurys on benchmark two-year and 10-year government bonds in
International rates
U.S. government rates Fannie Mae selected other countries; arrows indicate whether the yield rose(s) or fell (t) in the latest session
Week 52-Week 30-year mortgage yields
Latest ago High Low Discount Country/ Yield (%) Spread Under/Over U.S. Treasurys, in basis points
30 days 4.043 4.082 4.109 3.253 Coupon (%) Maturity, in years Latest(l)-2 -1 0 1 2 3 4 Previous Month ago Year ago Latest Prev Year ago
2.25 2.25 2.25 1.50
Prime rates 60 days 4.077 4.112 4.139 3.281 2.250 U.S. 2 2.250 t l 2.266 2.246 1.254

Federal funds 2.750 10 2.730 t l 2.739 2.863 2.386

U.S. 4.75 4.75 4.75 4.00 Other short-term rates
Canada 3.45 3.45 3.45 2.70 Effective rate n.a. 1.7000 1.7100 0.8600 4.500 Australia 2 2.024 l 2.024 1.972 1.758 -22.6 -24.3 50.4
Japan 1.475 1.475 1.475 1.475 Week 52-Week 2.250 10 2.608 l 2.608 2.720 2.702 -12.2 -13.2 31.6
High 1.8125 1.8125 1.9000 1.0625
Latest ago high low
Policy Rates Low 1.6500 1.6000 1.6500 0.7000 0.000 France 2 -0.499 l -0.499 -0.458 -0.470 -274.9 -276.5 -172.4

Euro zone 0.00 0.00 0.00 0.00 Bid 1.6800 1.6700 1.7000 0.8200 Call money 0.750 10 0.721 l 0.721 0.918 0.959 -200.9 -201.8 -142.7
Switzerland 0.50 0.50 0.50 0.50 Offer 1.6900 1.7000 1.7200 0.8300 3.50 3.50 3.50 2.75 0.000 Germany 2 -0.610 l -0.610 -0.615 -0.742 -286.0 -287.6 -199.6
Commercial paper (AA financial) 0.500 10 0.498 l 0.498 0.653 0.329 -223.2 -224.1 -205.7

Key Interest Rates 90 days 2.31 2.15 2.31 0.95 0.050 Italy 2 -0.326 l -0.326 -0.172 -0.061 -257.6 -259.2 -131.5
2.000 10 1.792 l 1.792 1.959 2.143 -93.8 -94.7 -24.3