For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
DJIA 21891.12 À 60.81 0.3%
What’s
News
Business & Finance
D iscovery agreed to buy
Scripps for $11.9 billion,
betting a bigger lifestyle-TV
portfolio will help it weather
the upheaval in cable. A1
 Losses for credit-card is-
suers are increasing, a rever-
sal from a six-year trend that
could be a warning sign for
markets and the economy. A1
 A massive build-out by re-
tailers has left a glut of space
devoted to selling groceries,
even as consumers’ food-
shopping habits shift. B1
 U.S. oil prices settled
above $50 a barrel for the
first time in over two months,
in a sign of renewed confi-
dence in the oil market. B1
 The Dow rose 60.81 to a
record 21891.12. Strong cor-
porate earnings helped lift
U.S. stocks to gains in July. B11
 Boeing hit a new high. The
firm accounted for over half
of the Dow’s July advance. B1
 A splinter group of bit-
coin developers is launch-
ing a new, competing version
of the digital currency. B10
 VW faces new legal woes,
as the EU recommended fraud
charges against two officials
over the emissions scandal. B3
 Scana is halting work on
a South Carolina nuclear-
power plant after huge cost
overruns and delays. B2
 Alphabet is pitching a
plan to store electricity from
renewable sources in molten
salt and cold liquids. B4
 HBO confirmed that some
of its programming was
stolen in a cyberattack. B2
 Heineken posted higher
first-half profit, fueled by
strong sales in Europe. B3
World-Wide
 Scaramucci was ousted
as White House communi-
cations director, just 10
days after his appointment
to the job, at the urging of
new Chief of Staff Kelly. A1
 Trump warned that he
could end federal payments
to insurers as a way to press
lawmakers to revive efforts
to repeal the ACA. A2
 The Pentagon and State
Department are proposing
that the U.S. supply Ukraine
with weapons as it fights
Russia-backed rebels. A6
 Pence warned against
Russian aggression in a
speech in Estonia, in one of
the administration’s toughest
attacks yet on Moscow. A6
 The U.S. hit Venezuela’s
leader with sanctions, say-
ing his government held an
illegitimate vote to advance
an authoritarian regime. A7
 China’s U.N. envoy
lashed out at the U.S. over
North Korea, saying Wash-
ington was ratcheting up
tensions with Pyongyang. A7
 Los Angeles officials and
the IOC reached a deal to
hold the Olympics in South-
ern California in 2028. A3
 Free movement of peo-
ple between the U.K. and
EU will end when the U.K.
leaves the bloc in 2019,
May’s spokesman said. A16
 The EU should consider
large fines on European
governments that fail to
adopt its economic pro-
posals, the ECB said. A16
 Died: Sam Shepard, 73,
Pulitzer-winning playwright,
Oscar-nominated actor. A11
CONTENTS
Business News.. B3,5
Capital Journal...... A4
Commodities........... B8
Crossword.............. A10
Heard on Street. B12
Life & Arts......... A9-11
s Copyright 2017 Dow Jones &
Company. All Rights Reserved
* * * * * * TUESDAY, AUGUST 1, 2017 ~ VOL. CCLXX NO. 26 WSJ.com HHHH $4.00
NASDAQ 6348.12 g 0.4% STOXX 600 377.85 g 0.1% 10-YR. TREAS. g 1/32 , yield 2.292% OIL $50.17 À $0.46 GOLD $1,266.60 g $1.80 EURO $1.1843 YEN 110.26
Caracas Crisis Prompts U.S. to Impose Sanctions
Scaramucci
Pushed Out
After 10 Days
BY REBECCA BALLHAUS Kelly previously ran the Home-
AND MICHAEL C. BENDER land Security Department.
Mr. Kelly urged Mr. Scara-
WASHINGTON—President mucci to resign during a one-
Donald Trump ousted his com- on-one meeting in his new of-
munications director after only fice shortly after being sworn
10 days and introduced his new in at a Monday morning White
chief of staff, a former Marine House ceremony, the officials
Corps general who has the task said. Mr. Scaramucci’s removal
of imposing more discipline in was designed to better orga-
the West Wing, following one nize a White House that has
of the most turbulent weeks of been riven by competing fac-
the administration. tions, they said.
Anthony Scaramucci was re- The president is “tired of
moved from the communica- the chaos and the confusion”
tions director post on Monday, in the West Wing, said Newt
becoming the seventh major Gingrich, the former House
administration official to leave Please see EXIT page A4
in Mr. Trump’s first six
months. Mr. Scaramucci was  Trump’s threat aimed at
ousted at the urging of the reviving ACA repeal............... A2
new chief of staff, retired Gen.  Gerald F. Seib: Turmoil in capital
John Kelly, in one of his first masks global threats.................. A4
official acts in the job, two ad-  U.S. military offers plan to
ministration officials said. Mr. arm Ukraine................................ A6
Cable Deal Bets on
Comfort-Food TV
ARIANA CUBILLOS/ASSOCIATED PRESS
BY JOE FLINT about home renovations, cook-
AND SARAH RABIL ing contests and the like put
Discovery and Scripps in a po-
Discovery Communications sition to offer a web-TV bundle
Inc. has agreed to buy Scripps directly to consumers, who are
Networks Interactive Inc. for “cutting the cord” to cable at a
ON GUARD: Bolivarian National Guard officers watched Venezuela’s National Assembly grounds in Caracas $11.9 billion, a bet that a larger fast pace and turning to
on Monday after the government held a vote to replace the opposition-controlled assembly. A7 footprint in lifestyle program- slimmed-down offerings from
ming will help it weather ca- Hulu and other competitors.
ble-TV upheaval. It will also give the com-
A bigger portfolio of channels bined firm more heft with pro-
that specialize in so-called com- gramming distributors that are
ONE DAY IN INDIA’S fort-food television would give
the combined company an edge
in talks with advertisers, who
under pressure to curb the
monthly cable fees passed
through to media companies.
OVERRUN COURTROOMS covet female and younger view-
ers gravitating to shows such as
“Property Brothers” and “House
News of the deal overshad-
owed the companies’ quarterly
Please see CABLE page A6
Hunters” on HGTV and “Shark
Week” on Discovery Channel.  Heard on the Street: Reality
A critical mass of programs bites for this TV merger... B12
Legal dysfunction hobbles India’s emergence as a global economic power
BY NIHARIKA MANDHANA AND VIBHUTI AGARWAL “It has become totally and thoroughly un- 4
manageable,” said Gopal Chaturvedi, a pri-
ALLAHABAD, India—At India’s largest
courthouse one recent Thursday, the wheels
vate lawyer since 1972. “It is a pathetic state
of affairs.”
Over Satisfied
Total
of justice began their slow grind at 10 a.m. Foreign investors looking to bet big worry The amount of U.S. commercial space devoted to
A dairy farmer settled into his usual spot, about getting buried in notices, hearings and selling food is at an all-time high per person. grocery space
3
hoping for a breakthrough in a 34-year-old appeals with no effective way of resolving Some expansion has come from traditional
property dispute filed before his birth by his disputes. Companies face constant delays grocers. At the same time, others including
father. In Courtroom 41, a murder appeal and overloaded dockets to settle even the dollar stores, pharmacies and gas stations
from 1983 topped the docket. The delay has smallest business dispute. Enforcing success- increased their fresh-food offerings. B1
kept the convicted men out of prison through ful judgments can take years. 2
the intervening decades. In bail court, Justice South Korean steelmaker POSCO’s billion-
Vipin Sinha faced his usual, impossible case- dollar plans to build a plant in India were Store space, in square feet Portion that are
load—380 cases in 300 minutes. What he mired for a decade in lawsuits, as well as per capita traditional grocery stores
can’t finish will fall to another day. land-use and environmental protests, before
A typical workday at the 150-year-old Alla- the company finally dropped the project. 1
habad High Court reveals a pattern repeated India’s government doesn’t have it any
across India’s overburdened judicial system, easier. Hundreds of millions of dollars in
which is hobbled by a pileup of cases that highway projects remain stalled over emi-
stretch as far back as four decades. The back- nent-domain disputes.
log has eroded the rule of law in the world’s The 2017 World Bank’s “Doing Business” 0
largest democracy, upended constitutionally- report placed India 172nd out of 190 coun- 1950 ’60 ’70 ’80 ’90 2000 ’10
guaranteed rights of swift justice and threat- tries on the “ease of enforcing contracts,” an Source: CoStar Group THE WALL STREET JOURNAL.
ens India’s emergence as a true global eco- indicator that evaluates court systems. Sudan
nomic power. Please see INDIA page A8
Brooklyn Super Dreams of Skiing Credit-Card Losses Flash Warning
In the Olympics—He Just Might
BY ANNAMARIA ANDRIOTIS to 3.29% in the second quar- The trend, which acceler-
ter, its highest level in four ated in the first half of this
i i i Losses for credit-card issu- years, according to Fitch Rat- year, has started to suppress
ers are increasing, a reversal ings. The quarter was also the bank earnings. If consumers’
Six months after first race, 36-year-old from a six-year trend that fifth consecutive period of budgets get more stretched, a
could be a warning sign for year-over-year increases in pullback in spending could put
Kosovo native trains in a boiler room markets and the broader the closely watched rate. All pressure on both economic
economy. eight large issuers, including growth and corporate profits.
The average net charge-off J.P. Morgan Chase & Co., Citi- While losses are rising,
BY MICHAEL M. PHILLIPS talkie and tool belt, slips on a rate for large U.S. card issu- group Inc., Capital One Finan- they remain low compared
weighted vest, dons a mask to ers—the percentage of out- cial Corp. and Discover Finan- with historical levels and a re-
BROOKLYN—On any given mimic high-altitude oxygen standing debt that issuers cial Services, had increases cord 10% net charge-off
day, building superintendent deprivation, and climbs onto a write off as a loss—increased for the quarter. Please see CREDIT page A2
Besnik Sokoli might be in the secondhand ski simulator
boiler room working on the braced between a broken cool-
furnace.
Or he might be in the boiler
room working on
ing unit and a tub of snow-
white paint. Then he spends
45 minutes swivel-
INSIDE
his skiing. ing from side to
Mr. Sokoli, a war side, imitating a run
refugee and super down a slalom
Markets............. B11-12 of five apartment course.
Opinion.............. A13-15
Sports........................ A12 buildings in the hip Says Mr. Sokoli:
Technology............... B4 Dumbo neighbor- “It doesn’t get any
U.S. News............. A2-4 hood between the more Brooklyn than
Weather.................. A10
World News. A6-7,16
Brooklyn and Man- this.”
hattan bridges, en- Mr. Sokoli’s natu-
tered his first seri- ral athletic ability
> ous ski race six
months ago, when
Besnik Sokoli and preternatural
competitive drive
SAM SHEPARD, THE RISKS FREE TRADE IS
he was 35. Now he’s making a are surprising world-class ski- AMERICAN OF STOPPING A TWO-WAY
long-shot bid for the 2018
Winter Olympics.
ers, who won’t rule out the
possibility he will earn a spot
PLAYWRIGHT STATINS STREET
After work each day, Mr. competing for his native Kos-
Sokoli sets aside his walkie- Please see DREAM page A8 LIFE & ARTS, A11 YOUR HEALTH, A10 OPINION, A15
 For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
A2 | Tuesday, August 1, 2017 * * THE WALL STREET JOURNAL.

Trump’s Threat Aimed at Reviving Repeal
WASHINGTON—President
Donald Trump warned Mon-
day that he could end federal
payments to insurers, allowing
them to be “hurt” by the Af-
fordable Care Act, as a way to
press members of Congress to
revive efforts to repeal the
Obama-era health law.
By Michelle Hackman,
Siobhan Hughes and
Anna Wilde Mathews
“If ObamaCare is hurting
people, & it is, why shouldn’t
it hurt the insurance compa-
nies,” Mr. Trump wrote on
Twitter.
The president was alluding
to the ACA’s “cost-sharing re-
duction” payments, which the
government pays to insurers
to help them cut deductibles
and other costs for low-in-
come consumers.
Some Republican lawmak-
ers Monday advocated a
pause to regroup following
last week’s collapse of the re-
peal effort, but Mr. Trump
wasn’t backing down from his
push to resurrect those ef-
forts.
Several GOP governors, in-
cluding Scott Walker of Wis-
consin and Asa Hutchinson of
Arkansas, met with White
House officials to discuss re-
peal options. Mr. Trump has
also held discussions on a pro-
posal from Sen. Lindsey Gra-
ham (R., S.C.) that would con-
vert ACA funding into block
grants that states could use to
remold their own health-care
systems.
But a legislative path ex-
cluding Democrats narrowed
last week when Senate Repub-
licans failed to approve sev-
eral proposals to overhaul the
2010 health-care law, leading
Senate Majority Leader Mitch
McConnell (R., Ky.) to say it
was time to “move on.”
While Mr. Trump suggested
he might end the insurance
payments, a bipartisan group
of more than 40 House mem-
bers released a proposal on
Monday aimed at permanently
authorizing them.
“My hope is we don’t have
to go down the path of stop-
ping these payments or cut-
ting off other areas of pay-
ment out there,” said Rep.
Tom Reed (R., N.Y.), the lead-
ing Republican on the biparti-
san plan.
Some Republican senators
U.S. NEWS
Insurers Offer Plans
On Ohio’s Exchanges
Health insurers have agreed
to offer Affordable Care Act ex-
change plans next year in 19 of
the 20 Ohio counties that had
been at risk of lacking cover-
age, cutting in half the esti-
mated number of counties na-
tionwide that now remain
without an expected 2018 ex-
change offering.
Ohio’s insurance regulator
said that five insurers have
agreed to expand their ex-
change footprints, ensuring
there is at least one insurer in
each of the 19 counties. The in-
surers include Centene Corp.,
Molina Healthcare Inc., Care-
indirectly took issue with Mr.
Trump’s recent tweet that
they were “total quitters” if
they didn’t vote again on re-
peal before tackling other
bills.
“It’s time to move on to
something else, come back to
health care when we’ve had
more time to get beyond the
Source, Medical Mutual of Ohio
and Paramount Health Care, all
of which already planned to of-
fer exchange products in the
state next year. The regulator
is still seeking an insurer to en-
ter Paulding County.
Insurers have until late Sep-
tember—when they sign federal
contracts to offer exchange
products—to make final calls on
their participation, amid ques-
tions about steps that the
Trump administration may take
that insurers say could under-
cut marketplace offerings. “We
recognize there is a lot of un-
certainty at the federal level,”
said Jillian Froment, director of
the Ohio Department of Insur-
ance.
The 20 Ohio counties were
left at risk of lacking exchange
moment we’re in,” said Sen.
Roy Blunt (R., Mo.). “Obvi-
ously we didn’t give up and we
didn’t quit and we gave it our
best shot.”
Senate Finance Committee
Chairman Orrin Hatch (R.,
Utah) said it wouldn’t make
sense to vote again on a health
plan until Republicans knew
ance payments may be the
insurers next year after An- most potent tool at Mr.
them Inc. and a smaller insurer Trump’s disposal. Insurers say
disclosed they would pull out of that without them, they would
Ohio’s exchange in 2018. be forced to increase premi-
The latest announcement in ums or exit the ACA’s ex-
Ohio underscores the fluid situ- changes, where consumers buy
ation in the exchanges, where insurance if they don’t get it
uncertainty about their future through their employer or a
in certain states has prompted government program.
some insurers to pull back or The administration has
exit. State regulators have maintained an uneasy rela-
countered with heavy pressure tionship with insurers since
on remaining companies to fill taking office, regularly threat-
the gaps. ening the payments while
According to the Kaiser working behind the scenes to
Family Foundation, there are encourage insurers to continue
still 19 counties, in Indiana and to sell coverage.
Nevada in addition to the one Insurers also facing a mid-
in Ohio, at risk of being without September federal deadline for
exchange insurers for next year, completing their premium
out of the more than 3,000 rates for 2018 exchange plans,
counties in the U.S. leaving them little breathing
—Anna Wilde Mathews room as the Trump adminis-
tration and Congress send
mixed signals about next
the Senate would pass it. steps.
“You’ve got to have a sys- The Kaiser Family Founda-
tem that has a reasonable tion has estimated that ending
chance of success,” Mr. Hatch the cost-sharing payments
said. “We are moving on to tax could generate average pre-
reform, but that doesn’t mean mium increases of 19% for the
we can’t do more than one marketplaces’ middle-tier “sil-
thing at a time. We can still ver” plans.
keep working on health care.” —Louise Radnofsky
For now, ending the insur- contributed to this article.

Oklahoma Town Copes With Aftermath of Massive Fire U.S. WATCH

ILLINOIS
Education Bill
Sent to Governor
Illinois’s Democratic legisla-
ture sent Republican Gov. Bruce
Rauner a school funding mea-
sure Monday he already has
vowed to veto.
Mr. Rauner called a special
session that began last week fo-
cused on approving a new K-12
school funding formula before
the start of fall classes. The $36
billion budget package passed
earlier this month over the veto
of the governor following a his-
toric, 736-day impasse. It in-
cluded a funding increase of
roughly $350 million to K-12
schools, but the state must still
MIKE SIMONS/TULSA WORLD/ASSOCIATED PRESS
ALABAMA
Judge Nixes Law
For Pregnant Girls
A federal judge struck down
Alabama’s one-of-a-kind law that
enabled judges to put minors
seeking abortions through a
trial-like proceeding in which the
fetus could get a lawyer.
Alabama legislators in 2014
changed the state’s process for
girls who can’t or won’t get their
parents’ permission for an abor-
tion to obtain permission from a
court instead. The new law em-
powered the judge to appoint a
guardian ad litem “for the inter-
ests of the unborn child.”
U.S. Magistrate Judge Susan
Russ Walker sided Friday with

establish a mechanism to dis- the American Civil Liberties

tribute the new money.
The General Assembly ap-
proved legislation two months
ago to enact a funding formula
allocating state money to the
neediest school districts first, but
the governor pledged to use his
veto power to rewrite the bill.
—Quint Forgey
FLORIDA
HISTORIC LOSS: A firefighter worked Monday to put out hot spots on one of the downtown buildings that was destroyed by a fire a
day earlier in Wagoner, Okla. The fire destroyed several historic buildings as well as apartments, leaving some people homeless. Tropical Storm Emily
Drenches the State
Tropical Storm Emily weak-
Union of Alabama, writing that
the law unconstitutionally and
impermissibly imposes “an un-
due burden on a minor in Ala-
bama who seeks an abortion
through a judicial bypass,” and
violates the girl’s privacy rights.
—Associated Press
ECONOMY
Pending Home Sales
Rose 1.5% in June
The number of homes across
the U.S. that went under con-

CREDIT Taking a Loss

Continued from Page One
rate they hit in early 2010.
Lenders say they aren’t ex-
pecting a return to crisis-level
losses and that the increases
are largely a return to normal
after a period of abnormal
lows.
Still, some bankers have
noted the change in direction,
a streak of widening losses in
the industry after 24 quarters
in which they shrunk. “The
overall environment is deteri-
orating,” said David Nelms,
chief executive at Discover. It
is “not quite as favorable as it
was over the past few years.”
In 2010, when credit-card
write-offs started declining,
banks lent mostly to credit-
worthy borrowers. But start-
ing around 2014, many lend-
ers loosened underwriting
standards substantially, turn-
ing to subprime borrowers
with lower credit scores who
are charged higher interest
rates.
That contributed to a new
boom in credit-card spending.
Card balances nationwide rose
6% over the past 12 months
through May, a growth rate
that is up from about 1% four
years ago, according to the
Federal Reserve.
Rising balances, however,
also have coincided with the
recent loan losses and put a
dent in what has been one of
the healthiest credit-card
markets on record.
The missed payments and
increase in losses are having
knock-on effects on lenders’
earnings. Many posted dou-
ble-digit-percentage year-
over-year increases in the
money they set aside to cover
future card losses.
Discover shares dropped
4% on Thursday, the day after
Net charge-off rates
American Express
Bank of America
Citigroup
Discover
J.P. Morgan Chase
Wells Fargo
U.S. Bank
Capital One
0%
Note: Data based on U.S. credit cards. Retail store cards excluded, except for Capital One.
Source: the companies
the company reported that it
increased loan-loss provisions
by 55% and raised guidance
for its 2017 overall net
charge-off rate. It is “hard in
the short term to grow earn-
ings when credit is moving
against us,” Mr. Nelms said.
The rising losses are occur-
ring during a time of near re-
cord-low U.S. unemployment,
which suggests that credit
performance could quickly
weaken should the jobs situa-
tion turn.
“That’s a little concerning,”
said Michael Taiano, a direc-
tor at Fitch.
During the first-quarter
earnings period, some lenders
and analysts pointed to delays
in tax refunds as a possible
reason for the pickup in card-
related losses. But this quar-
ter, charge-offs kept rising for
many lenders, fortifying wor-
ries that consumers are taking
on too much debt.
The card market is an indi-
cator of consumers’ ability to
pay back their debts. Unlike
mortgages, a much broader
group of consumers have ac-
cess to cards. And these ac-
2Q 2016
2Q 2017
1% 2% 3% 4%
THE WALL STREET JOURNAL.
counts can fall low on the pri-
ority list of bill payments
when household finances are
tight.
While overall consumer
balance sheets look healthy,
according to Federal Reserve
data, some numbers suggest
they are starting to stretch.
For retail-store cards offered
by Synchrony Financial and
The missed payments
and increase in losses
are having knock-on
effects on earnings.
Citigroup, customers’ balances
are growing at a faster pace
than their purchases, indicat-
ing they are slower at paying
down their debts.
Card losses in the U.S. are
up at most big banks, includ-
ing those that specialize in
subprime lending or store
credit cards. The net charge-
off rate at Capital One in the
second quarter increased
more than a percentage point
from the year prior. Citi-
group’s store-card figure in-
creased 0.63 percentage
point, while Synchrony’s over-
all rate rose more than 0.90
percentage point.
Broader consumer figures
also point to overleveraging.
Nonmortgage consumer debt
payments, including credit
cards and auto loans, account
for the largest share of con-
sumers’ after-tax income since
2009, according to an analysis
by Barclays PLC.
So far this year, several
card lenders, including Capital
One and Synchrony, have
5% raised projections for charge-
offs. Investors are jittery
about more revisions.
Alliance Data Systems
Corp., the third-largest issuer
of store cards by outstanding
balances, had been guiding in-
vestors to a full-year 2017 loss
rate in the mid-5% range. In
July, though, it wouldn’t com-
mit to that figure when
pressed by analysts on its
earnings call.
The company also reported
a net charge-off rate for cards
of 6.2% for the second quarter,
up 1.1 percentage points from
a year earlier. Its shares plum-
meted more than 9% that day.
Credit cards also moved to
the top of the list of concerns
about potential losses in the
Federal Reserve’s annual
stress test of banks in June.
The central bank said lenders
would incur $100 billion in
projected credit-card losses in
a severely adverse hypotheti-
cal recession, tied with com-
mercial and industrial loans.
Cards ranked third the year
before.
“We’ve seen an inflection
point in credit,” said Charles
Peabody, managing director at
Compass Point Research &
Trading LLC. “It is going to
get worse from here.”
ened to a tropical depression
Monday afternoon as it slogged
eastward across the Florida pen-
insula, spreading drenching rains
tract rose in June, a sign of solid
demand despite severe supply
constraints.
The National Association of
and causing power outages. Realtors’ pending home sales in-
The National Hurricane Center dex, which tracks signings for
said Emily made landfall late purchases of previously owned
Monday on Florida’s Gulf Coast homes, increased 1.5% from a
south of Tampa Bay and then be- month earlier to 110.2, the trade
gan moving east toward the At- group said Monday. Economists
lantic coast. Emily spent only a surveyed by The Wall Street
few hours as a tropical storm, los- Journal had expected sales to
ing strength as it marched inland. tick up 0.7% in June.
—Associated Press —Sarah Chaney
CORRECTIONS  AMPLIFICATIONS
The last name of Dick istration steel policy incorrectly
Schultz, co-author of the said she is a Republican.
Ducker Worldwide study on
aluminum use in automobiles, The House Administration
was misspelled as Shultz in a Committee voted in February
Business News article Monday to shut down the U.S. Election
about the study. Assistance Commission, but
the full House hasn’t taken up
Venezuela’s infant-mortality the measure. Separately, the
rate increased by 30% last year, House Appropriations Com-
according to the country’s mittee in June introduced and
health ministry. A Review article later removed language in a
Saturday about Venezuela incor- spending bill to wind down
rectly said that rate has hit 30%. the agency. A U.S. News article
on July 18 about efforts by
California Rep. Judy Chu is House Republicans to defund
a Democrat. A U.S. News article the EAC gave an incomplete
on Friday about Trump admin- history of those efforts.
Readers can alert The Wall Street Journal to any errors in news articles by
emailing wsjcontact@wsj.com or by calling 888-410-2667.
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THE WALL STREET JOURNAL. Tuesday, August 1, 2017 | A3

U.S. NEWS

Ex-Mainers
Get a Call to
Come Home
Recruiters search for
candidates with ties
to the state to fill jobs
in a tight labor market
finding a good candidate, re-
cruiter Ed McKersie, who runs
Portland staffing firm Pro
Search Inc., looks on social-
media sites such as LinkedIn
to identify ex-Mainers and
graduates from Maine col-

YOON S. BYUN FOR THE WALL STREET JOURNAL

BY JON KAMP
Employers and recruiters
looking to fill positions in
Maine are scouring the U.S.
for people who once lived in
the northern New England
state in hopes work will coax
them back.
With the state’s unemploy-
ment rate hovering at 3.5%,
near record lows, the labor
market is tight, particularly in
the southern part of the state
near Portland, Maine’s largest
city with 67,000 residents.
Although the state known
as “Vacationland” draws tour-
ists to its coastal hamlets and
rugged wilderness, it can be
harder to convince outsiders
to actually live there, recruit-
ers say. Maine doesn’t have a
deep roster of major compa-
nies, lacks a large city and has
notoriously harsh winters.
To improve his odds at
leges who might be convinced
to return to their old stamp-
ing ground.
“They know what it’s like
here, they have an affinity,”
said Mr. McKersie. He said the
key is to show ex-Mainers that
the state has more available
jobs than they may think.
With roughly 1.3 million
residents, Maine is among the
smaller U.S. states by popula-
tion. But there are also nearly Jay Dearborn, left, was recruited to return to Maine to work as vice president of strategy for WEX Inc. in South Portland.
a half-million people who were
born in Maine scattered roughly 300 active employers,
throughout the country, ac- Mr. McKersie said. The organi-
cording to U.S. Census data. zation is using social media
The state has thus far in- ads and partnerships with col-
vested $100,000 in an organi- leges to seek former Mainers,
zation Mr. McKersie launched he said.
in 2015 called Live and Work Authorities in Maine are
in Maine, which aims to con- also concerned about the need
vert visitors into residents by to offset older workers retir-
linking them to employment ing. The state’s median age
opportunities. was 44.6 years in 2016, high-
The website added job est in the nation, according to
boards last year that include U.S. Census estimates. Retain-
ing and recruiting younger
workers is personal for Re-
publican Gov. Paul LePage: His
28-year-old son left Maine for
a job in Florida, his spokes-
man said.
Mr. LePage is pushing for a
$100 million bond program
aimed at helping young people
accelerate the payment of stu-
dent loans, provided they
work in the state for five
years. This would build on an
earlier tax-credit program
aimed at students started be-
fore he took office.
“Retaining young Mainers
and attracting those who have
left the state is definitely a
goal, and the governor’s poli-
cies are aimed at encouraging
them to come home,” the
spokesman said.
A recent state survey
Scouring LinkedIn,
Facebook Pays Off
Idexx Laboratories Inc., a
veterinary-health company with
roughly 2,500 local employees,
has been hunting for job candi-
dates with connections to
Maine, said Giovani Twigge, the
chief human resources officer.
The search has included
looking for clues on social me-
dia, including Facebook and
LinkedIn.
“Maine is not on every-
body’s radar,” Mr. Twigge said.
“The sale was very difficult
when people didn’t know
showed that employers had
31,000 job openings in Sep-
tember, nearly 5% of the non-
farm payroll jobs in the state
at that time, said Glenn Mills,
chief economist in the Maine
labor department’s Center for
Workforce Research. Three-
quarters of responding em-
ployers said the jobs were dif-
ficult to fill.
Anecdotally, jobs in infor-
mation technology and health
appear particularly hard to
Maine.”
Idexx found its director of
software research and develop-
ment, Alan Boucher, because
his LinkedIn profile listed his lo-
cation as both Northern Califor-
nia and Maine. He and his wife
bought a small Maine cottage
in 2011 as a vacation home,
and after Idexx offered him a
job, they moved across country
permanently with their grade-
school-age daughter four years
later.
Mr. Boucher, a Connecticut
native, said he and his wife
were already drawn to the
small-town feel and pace of
life. They now live in the
coastal town of Kennebunkport.
staff, said Quincy Hentzel,
chief executive at the Port-
land Regional Chamber of
Commerce.
The extra effort to lure
workers to Maine is a sign of
the times as companies look
for workers to fill skilled po-
sitions amid low unemploy-
ment nationally. The U.S. job-
less rate was 4.4% in June,
around a level that indicates
nearly everyone looking for a
job has one.
“It was a both a great op-
portunity and a great outcome
for our family,” he said.
Jay Dearborn left Maine for
college in Pennsylvania 20
years ago and moved back to
the state last year. Working as
a principal for McKinsey & Co.
and living in Princeton, N.J., Mr.
Dearborn met Melissa Smith,
the chief executive of Maine-
based payment-processing firm
Wex Inc. at a lunch event. Ms.
Smith helped persuade the 38-
year-old to return home with
his family, he said.
“There is something about
the place and the people that
gets in your bones,” he said.
—Jon Kamp
Other hard-sell locales are
also trying to keep young peo-
ple at home and tempt back
those who moved away. De-
troit has hosted annual con-
fabs to show off the city to
successful natives who live
elsewhere.
Similar events are in the
works in Cleveland and in
Erie, Pa. And lawmakers in
Connecticut have proposed a
tax credit for college gradu-
ates to stay put.

Los Angeles Cuts a Deal to Host 2028 Olympics Former

BY MATTHEW FUTTERMAN
Officials in Los Angeles and
leaders of the International
Olympic Committee have
reached a deal to bring the
Summer Games to Southern
California in 2028.
The deal comes after
months of discussions be-
tween the two parties and
won’t be official until a vote
by the IOC in September,
which is considered a formal-
ity at this point. The talks
moved forward after L.A. offi-
cials and the U.S. Olympic
Committee signaled they
would step back from the race
against Paris for the 2024
Games in exchange for secur-
tees had indicated they were
unlikely to bid again if they
Games. LA24, which will likely
be renamed LA28, is expecting
the deal in September, the
Summer Games will return to
Sheriff
ing hosting rights for 2028.
Talks between the parties
accelerated in early July, after
lost the current campaign.
The Wall Street Journal re-
ported in May that the IOC
to receive more money from
the sales of world-wide Olym-
pic sponsorships than it would
Los Angeles for the first time
since 1984. The U.S. last
played host to the Olympics in
Guilty of
the full membership of the IOC
approved a plan to award the
2024 and 2028 Games simul-
was close to a deal to give
Paris 2024 and Los Angeles
the 2028 Games.
have had it played host to the
Games in 2024.
Los Angeles Mayor Eric Gar-
2002, when Salt Lake City or-
ganized the Winter Games.
For the IOC, the deal would
Contempt
taneously at its upcoming According to people who cetti said Monday the IOC fund- lock up two of the world’s lead- BY ZUSHA ELINSON
meeting in September. have been working on the ing will “kick-start our drive to ing cities to host coming Sum-
The IOC usually awards deal, Los Angeles—in exchange make L.A. the healthiest city in mer Games after a tumultuous Joe Arpaio, the former Ari-
hosting rights to the Olympics for waiting an additional four America, by making youth 2016 in Rio de Janeiro forced zona sheriff famous for his ag-
seven years ahead of the years to play host—will re- sports more affordable and ac- the organization to rethink its gressive pursuit of undocu-
Games. However, IOC Presi- ceive funding for sports pro- cessible than ever before.” commitment to holding the mented immigrants, was found
dent Thomas Bach didn’t want grams. The IOC will also help Mr. Bach said the deal event in developing countries. guilty Monday of criminal con-
to lose either Paris or Los An- underwrite the operating costs would create a “win-win-win Some major cities have tempt for defying a judge’s or-
geles as a potential host city. of LA24, the private group situation” for Los Angeles, shied away from hosting Olym- der to stop conducting immi-
Both cities and their respec- that will serve as the local or- Paris and the IOC.” pics because they are expensive gration patrols in the state.
tive national Olympic commit- ganizing committee for the Assuming the IOC approves and thus politically unpopular. Known simply as “Sheriff
Joe,” Mr. Arpaio was the sher-
iff of Maricopa County for 24

Power Outage Hurts years before losing a re-elec-

tion bid last fall amid mount-
ing legal problems.

Outer Banks Tourism

BY VALERIE BAUERLEIN
He gained national fame for
his enforcement tactics against
illegal immigrants, as well as
his treatment of jail inmates,
County after the electric ca- making them wear pink under-
bles were unintentionally cut wear and holding some out-
STEVE EARLEY/THE VIRGINIAN-PILOT/ASSOCIATED PRESS

North Carolina Gov. Roy Thursday. side in tents. He spent years

Cooper toured the Outer Banks
Monday, where a power out-
age has led to the evacuation
of two vacation islands during
peak season, threatening the
local economy, where tourism
is a $1 billion annual business.
Crews building a 3-mile,
$246 million bridge disrupted
electricity on Thursday when
they hit underground cables
that are the main distribution
line to the barrier islands.
Utility officials say it could
take up to two weeks to re-
store power. More than 3,500
people have been evacuated by
state-run ferries.
Mr. Cooper talked with local
business owners and toured
the site where Cape Hatteras
Electric Cooperative is work-
ing to repair the damage. He
said the state would continue
to ensure that the cooperative
has “all of the resources that
they need to get power back to
these islands as quickly and as
safely as possible.”
The governor declared a
state of emergency on Hat-
teras Island in Dare County
and Ocracoke Island in Hyde
Danny Couch, a Dare County investigating President Barack
commissioner who works as a Obama’s birth certificate.
tour guide and private chef U.S. District Judge Susan
during tourist season, said the Bolton ruled Monday that Mr.
evacuations and power disrup- Arpaio “willfully violated” a
tion are especially difficult for 2011 court order that prohib-
small-business people, “who ited his deputies from stopping
live and die every day with and detaining Latinos without
things like payroll and keeping reasonable suspicion that a
up with taxes and insurance.” crime had been committed.
The islands were compara- The 85-year-old Mr. Arpaio,
tively deserted Monday, save who called himself “America’s
for workers involved in repairs toughest sheriff,” could face up
and the permanent residents A darkened convenience store on Hatteras. Tourists hit the road after being ordered to evacuate. to six months behind bars. He
who were allowed to remain. will be sentenced in October.
Many businesses were closed cables were severed when con- Attorneys for the former
if they didn’t have a generator. tractor PCL Construction acci- sheriff said he would appeal the
Pop’s Raw Bar in Buxton, on dentally drove steel casing into verdict to get a trial by jury.
Hatteras, was open but busi- them. “Joe Arpaio is in this for the
ness was way down from last PCL said in a statement long haul, and he will continue
week, when thousands of tour- Monday that one of two dam- his fight to vindicate himself, to
ists were on the islands, bar- aged lines has already been re- prove his innocence, and to
tender Natalie Nacif said. paired. The company said the protect the public,” they said.
“I didn’t think it was neces- water table was making work Mr. Arpaio’s tactics won
sary to evacuate all the tour- on fixing the second line chal- him admirers. But his ap-
ists,” Ms. Nacif said. “People lenging. The contractor said it proach toward immigration
come here for the beach. is working on an alternative and crime attracted hundreds
That’s still here.” option to repair that involves of lawsuits and ultimately ran
Cape Hatteras Electric Co- building a new overhead trans- afoul of the Justice Depart-
operative, which provides mission line. ment, which launched an in-
power to 7,000 homes and “We’re working to resolve vestigation into whether he
businesses on the islands, said this as quickly and safely as had targeted Latinos and
the underground transmission possible,” it said. abused his authority.
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
A4 | Tuesday, August 1, 2017
Turmoil in Washington Masks Global Threats
CAPITAL JOURNAL
By Gerald F. Seib
When folks here in Wash-
ington end a summer filled
with White House hijinks
and an epic but inconclusive
health-care debate, they will
look up and discover some-
thing unsettling: The world
has become a more danger-
ous place while everybody
has been distracted.
That’s most obviously true
in North Korea, where its
rogue weap-
ons program
has leapt so
far forward
that the na-
tion now has
a missile with
the range to
reach much of the U.S.
Pyongyang’s capabilities are
advancing so quickly that
the Defense Intelligence
Agency has had to ratchet
forward, to as early as next
year, its estimate of when
North Korea will have an in-
tercontinental ballistic mis-
sile capable of carrying a nu-
clear warhead.
There is widespread ex-
pectation the North Koreans
may conduct another missile
test in a matter of days, and,
perhaps not long down the
road, another underground
test of a nuclear device.
Meanwhile, American re-
lations with China, the coun-
try most able to cooperate in
slowing down Pyongyang,
are deteriorating amid presi-
dential recriminations—de-
EXIT
Continued from Page One
speaker who advises the presi-
dent. He said the president has
been ruminating about the
chief-of-staff change for weeks,
and is prepared to empower
Mr. Kelly in a way that his pre-
decessor, Reince Priebus,
wasn’t. Mr. Priebus left the po-
sition last week.
“Trump, of course, reserves
the right to cause chaos him-
self, but he likes an orderly
system,” Mr. Gingrich said.
“That’s how his golf courses
work: He thinks the cooks
should be cooking, the caddies
should be caddying. But that
doesn’t restrict him.”
Mr. Trump has told Mr.
Kelly that all White House offi-
cials—including advisers such
as chief strategist Steve Ban-
non and family members such
as son-in-law Jared Kushner—
will report directly to the chief
of staff, press secretary Sarah
Huckabee Sanders said at
Monday’s news briefing.
Yet Mr. Kelly’s authority
may also face limits. Mr.
Trump’s communicating over
Twitter, at times on issues far
removed from the White
House’s top legislative priori-
ties or stated agenda, has
proven difficult for previous
senior staff members to influ-
ence or curb. And the White
House is populated by two
members of the president’s
family—Mr. Kushner and Mr.
Trump’s daughter Ivanka, a
White House adviser—which
could complicate the hierarchy,
even if they technically report
to the chief of staff, according
to past White House veterans.
“It’s easy for a chief of staff
to say to Anthony Scaramucci
that you’re wrong and you’re
gone,” said Ari Fleischer, press
secretary under former Presi-
dent George W. Bush. “When
it’s the president’s daughter,
you can say you did it wrong,
but you can’t say you’re gone.”
After Mr. Scaramucci’s de-
parture, which followed the
resignation of press secretary
Sean Spicer 10 days ago, the
White House on Monday
sought to project an air of sta-
bility going forward. “The
president has 100% confidence
in all members of his staff,”
Ms. Sanders said.
“No WH chaos!” Mr. Trump
wrote in a tweet Monday
morning.
The White House declined
to comment about any possible
successor for Mr. Scaramucci
and didn’t make Mr. Kelly
available for comment.
Republicans expressed hope
that Mr. Kelly will be able to
Russian President Vladimir Putin and President Donald Trump shook hands at the G-20 summit in Hamburg, Germany, on July 7.
livered via Twitter—about
Beijing’s behavior.
Relations with Russia are
sliding backward as well,
punctuated by the passage of
a bill imposing new American
sanctions and the Kremlin’s
decision to kick a stunning
755 diplomats and U.S.-hired
staff out of the country in re-
sponse. Both sides agree that
ties now are at their lowest
point since the Cold War.
That soured relationship
with Russia means it will be
tougher to untangle the
world’s second-messiest
problem, behind that Korean
nuclear threat: the war in
Syria, where the U.S. and
Russia are essentially on op-
posite sides, with forces al-
ways on the verge of bump-
ing into one another.
Anthony Scaramucci became the latest major official in the Trump administration to leave.
Other Senior Staff Who Have Left
MIKE FLYNN
Feb. 13
The former national security
adviser resigned amid increas-
ing fire over his conflicting
statements about his contacts
with Russian officials before
the inauguration.
MIKE DUBKE
May 30
Mr. Dubke resigned as communi-
cations director after three
months. “The reasons for my de-
parture are personal,” he wrote
to friends, saying it was a “great
honor” to serve President Trump.
impose discipline and order.
Sen. Orrin Hatch (R., Utah)
said the appointment of a gen-
eral had tamped down “a lot of
the screaming and shouting
down there.”
Mr. Scaramucci, 53 years
old, is the founder of hedge-
P W L C 10 11 12
The U.S. also is being
challenged by Iran. In possi-
ble defiance of new sanc-
tions being imposed by Con-
gress, the Iranians just
launched their own missile
into space. Meantime, U.S.
forces in the past week fired
both warning shots and
warning flares at Iranian
ships acting provocatively in
the Persian Gulf.
I
n case that isn’t enough,
few paid much attention
over the weekend when
nuclear-armed Pakistan, also
one of the most dangerous
places on earth, fell into a
governing crisis as its prime
minister was ousted amid a
scandal that is creating new
instability.
Is this all bad coincidence?
KATIE WALSH
March 30
White House officials said Ms.
Walsh, then deputy chief of
staff, would leave to join Amer-
ica First Policies, an outside
group that aims to bolster Don-
ald Trump’s agenda.
SEAN SPICER
July 21
Mr. Spicer resigned as press
secretary over objections that
President Trump hired financier
Anthony Scaramucci as his new
communications director, accord-
ing to a White House official.
fund investing firm SkyBridge
Capital and a hedge-fund con-
ference known as SALT. Known
as “The Mooch,” Mr. Scara-
mucci previously hosted a fi-
nancial TV show on Fox Busi-
ness Network and had been a
frequent guest advocating for
H T G K B F A M 1 2 3 4 5 6
U.S. NEWS
Mostly, yes. Certainly the
Trump administration didn’t
create all these problems. Still,
the spectacle of dysfunction in
Washington has the potential
to make things worse.
When a president appears
weak, distracted or in trou-
ble, as President Donald
Trump does right now, the
effects on international af-
fairs can play out on many
fronts. First, adversaries may
feel more emboldened to
challenge a besieged Ameri-
can leader. That may be a
miscalculation, but the
chances of miscalculation go
up at such times.
Second, there always is the
suspicion that a president
embattled at home is looking
for a distraction abroad. Even
if there’s a real crisis, there
JAMES COMEY
May 9
The president gave a number
of reasons behind the FBI di-
rector’s firing, including Mr.
Comey’s handling of a probe
into Hillary Clinton’s use of a
private email server.
REINCE PRIEBUS
July 28
Mr. Priebus was replaced as
chief of staff by Homeland Se-
curity Secretary John Kelly, a
retired Marine Corps general. In
a tweet, Mr. Trump called Mr.
Kelly “a Great Leader.”
Mr. Trump on cable shows.
Mr. Scaramucci’s ouster
came four days after the New
Yorker magazine published an
expletive-filled interview with
him, in which the Wall Street
financier attacked other top
staffers in the White House, in-
7 8 9 O I X X ** THE WALL STREET JOURNAL.
during Watergate, when law-
makers voted to cut funding
for the war in Vietnam and
passed the War Powers Act
to limit a president’s hand in
military operations abroad.
W
as this congressio-
nal mindset at work
in recent days when
Congress passed legislation
imposing more sanctions on
Russia, Iran and North Ko-
rea? Probably; at a mini-
mum, lawmakers worried
that Mr. Trump otherwise
would be soft on the Kremlin
SAUL LOEB/AGENCE FRANCE-PRESSE/GETTY IMAGES
after a campaign in which he
talked of wanting to improve
relations, and amid accusa-
tions Moscow worked to
help him win.
But in the process, the
legislation also blocked the
president from rolling back
sanctions without congres-
sional approval, a provision
that severely limits presiden-
tial flexibility in conducting
foreign policy. Mr. Trump
doesn’t like it, and neither
will future presidents if that
would be charges the White becomes the pattern. Con-
House is pumping it up to di- gressional action is a blunt
vert attention. “Wag the Dog” tool for handling the finer
suspicions are never far be- points of international af-
neath the surface. fairs. Mistrust of the presi-
In any case, the presi- dent has produced what may
dent’s pattern of engaging in be a bad precedent.
exaggerations and outright Of all these problems, the
misstatements has downside North Korean one is the
risks in a dangerous interna- most urgent and dangerous.
tional environment. When Mr. Trump is right when he
the leader of the free world says China hasn’t done what
speaks in a time of genuine it could to curb North Korea:
crisis, he needs his country- At this point, Beijing’s true
men to believe him and the intentions have to be consid-
rest of the world to take him ered suspect. The grim real-
seriously. On the world ity, though, is that China’s
stage, calm and understated balkiness leaves few options,
usually beats blustery. and no good ones, for deal-
Third, when a president is ing with the threat.
thought to be distracted or And that’s a problem a lot
in trouble, Congress steps in more important than who’s
to fill what it perceives to be up and who’s down in the
a void. That’s what happened White House this week.
WASHINGTON
cluding Messrs. Priebus and
Bannon.
Ms. Sanders said Monday
that the president felt Mr.
WIRE
Scaramucci’s comments in the
interview were “inappropriate TAX AGENDA
for a person in that position.”
She declined to answer a ques- Officials Push
tion about whether Mr. Trump Aggressive Timeline
regretted hiring him.
Mr. Scaramucci had told fel- Trump administration officials
low White House officials in pressed an aggressive timeline
recent days that he knew it for advancing a major tax bill
JIM LO SCALZO/EUROPEAN PRESSPHOTO AGENCY
was a possibility that his New this fall along with ambitious
Yorker interview could result goals for the bill’s contents.
in him being ousted, said two Background work on a bill will
people familiar with the con- happen during August in prepa-
versation. But in a White ration for committee action in
House that has driven an un- September, a House floor vote in
ceasing news cycle for much of October and a Senate vote in
the past six months, with one November, Marc Short, the
breaking news story overshad- White House director of legisla-
owing the last, Mr. Scaramucci tive affairs, said at an event in
told colleagues that he thought Washington on Monday.
it might blow over. Mr. Short’s comments are
Mr. Scaramucci—who had part of a coordinated effort by
reported directly to Mr. Trump White House officials and busi-
while Mr. Priebus was chief of ness groups to turn the country’s
staff—had told the president
on Sunday that he wanted to
focus to tax policy, persuade
Americans that the issue should
report to Mr. Kelly, according be a priority and argue that the
to a Republican close to the administration’s plan would yield
White House. But Mr. Kelly felt faster economic growth.
the communications director “This is about creating jobs,”
was unable to be a “team Treasury Secretary Steven
player” and found his com- Mnuchin said at the event,
ments about his colleagues un- which was sponsored by Free-
becoming, the person said. dom Partners and Americans for
Mr. Scaramucci asked to re- Prosperity, advocacy groups as-
turn to his position at the U.S. sociated with the Koch family of
Export-Import Bank when he wealthy industrialists.
gave his resignation, a White —Richard Rubin
House official said. But Ms.
Sanders said in the briefing 2016 CAMPAIGN
that Mr. Scaramucci now holds
no administration role. Mr. RNC Officials Told
Scaramucci didn’t return a call To Save Documents
seeking comment.
Mr. Scaramucci’s press team Republican National Commit-
was given 15 minutes notice on tee officials have been ordered
Monday to report to the office by the party’s legal team to pre-
of Ms. Sanders, who informed serve documents pertaining to
them of the change, said two the 2016 presidential campaign, a
people who attended the meet- precaution in the face of a broad
ing. The communications staff federal investigation into Russian
of about 40 people received a interference in the election.
similarly urgent notice earlier In a memo sent Friday to all
this month when they were RNC staffers, the RNC counsel’s
told that Mr. Scaramucci was office said investigators hadn’t
joining the communications of- yet contacted the party commit-
fice, and that Mr. Spicer, who tee but could do so in the future
resigned in protest over Mr. “given the important role that
Scaramucci’s hiring, was leav- the RNC plays in national elec-
ing. Ms. Sanders said Monday tions.” The memo stated that the
she was “not aware” of any counsel’s office wasn’t aware of
changes to Mr. Spicer’s status “any suggestion whatsoever of
in the wake of Mr. Scara- improper or illegal activity by the
mucci’s ouster. RNC or any of its employees.”
Mr. Scaramucci was the ad- Justice Department Special
ministration’s second official Counsel Robert Mueller is con-
communications director. Mike ducting the probe of election
Dubke, who previously held meddling by Russia, and investi-
the post, resigned in May. gating whether associates of
Mr. Kelly’s challenge at the President Donald Trump colluded
White House will be to con- in Moscow’s effort. Mr. Trump and
vince the president to stick his campaign have denied any col-
with a new system, Mr. Ging- lusion. Moscow has denied any in-
rich said. terference in the U.S. election.
—Ted Mann, Siobhan Hughes The RNC memo was first re-
and Shelby Holliday ported by BuzzFeed.
contributed to this article. —Rebecca Ballhaus
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
THE WALL STREET JOURNAL. Tuesday, August 1, 2017 | A5

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A6 | Tuesday, August 1, 2017 * *** THE WALL STREET JOURNAL.

WORLD NEWS
U.S. Plan Would Supply Weapons to Kiev
White House approval
Helping Hand
is sought for proposal The U.S. has increased aid to
aimed at deterring Ukraine in response to the
country’s conflict.
actions by Moscow
$150 million spent Other
The Pentagon and State De- assistance
partment have devised plans to 125
supply Ukraine with antitank
missiles and other weaponry 100
and are seeking White House
approval, U.S. officials said, as 75
Kiev battles Russia-backed sep-
aratists and ties between Mos- 50 Peace and
cow and Washington fray.
security
25
By Julian E. Barnes in
London, Laurence
Norman in Brussels 0
and Felicia Schwartz FY’10 ’12 ’14 ’16
in Washington Note: Fiscal year ends Sept. 30
Source: U.S. Agency for International
U.S. military officials and Development

diplomats say the arms, which THE WALL STREET JOURNAL.

they described as defensive,
are meant to deter aggressive decision to provide “defensive
actions by Moscow, which the weapons” was likely but not

PETE KIEHART/GETTY IMAGES

U.S. and others say has pro- imminent, according to people
vided tanks and other sophis- involved in the discussions.
ticated armaments as well as Officials said Mr. Volker be-
military advisers to rebels lieves there is a narrow win-
fighting the Kiev government. dow for progress in Ukraine
Since Russia invaded and over the next months before
annexed Ukraine’s Crimean Russia’s presidential elections,
peninsula in 2014 and then be- Ukrainian national guardsmen received instruction on the use of an automatic grenade launcher from an American soldier, right, in 2015. due in March, but that a
gan supporting Russian-speak- change in the situation can be
ing insurgents in the country’s plan, according to U.S. officials. rising number of cease-fire vi- weapons to Ukraine would fur- flict—part of an effort by pol- brought only by raising the
east, Washington, wary of es- Germany and France remain olations as progress on peace ther impair peace efforts. icy makers to limit the risks of costs for Moscow of continued
calating the conflict, has deeply skeptical about provid- efforts has faltered. Under the Pentagon and escalation and defuse criticism intervention in Ukraine. In pub-
largely limited its support for ing arms to Ukraine, fearing “The level of violence is up State Department proposal, the that the moves could encour- lic comments, he has played
Kiev’s military to so-called that such moves would raise a bit of late,” said Gen. Curtis U.S. would provide antitank- age offensive action by Kiev. down the notion that supplying
nonlethal aid and training. tensions and deepen the con- Scaparrotti, the top U.S. and tank weapons, most likely Jav- Javelin missiles and launchers weapons to Ukraine would es-
A senior administration offi- flict there. But U.S. officials NATO commander. “The Rus- elin missiles, as well as possi- are lightweight and usually car- calate the conflict with Russia.
cial said there has been no de- said they expect allies, possibly sians provide equipment, bly antiaircraft weapons, in ried by two-man teams, so they A senior Ukrainian official
cision on the armaments pro- including the U.K., Canada, Po- some of their most modern addition to other arms. Ukraine are highly mobile. said it was widely accepted in
posal and it wasn’t discussed land and Lithuania to be open equipment, and they provide has long sought Javelins to Should Ukraine use the Kiev that any advanced weap-
at a high-level White House to increased military support. proxy forces with advisers.” counter Russian-made armored weapons improperly, Washing- ons from the U.S. would be
meeting on Russia last week. Roughly 10,000 people Russian officials have long de- vehicles in rebel-held areas. ton could decide to withdraw its used only in an “emergency”
The official said President have died in the Ukraine con- nied supporting separatists and U.S. officials, however, said support or technical assistance. and not during regular combat
Donald Trump hasn’t been flict since 2014, according to criticized Western efforts to the plan would be to deploy the Kurt Volker, named U.S. with separatist forces.
briefed on the plan and his posi- the United Nations. U.S. offi- train the Ukrainian military. Rus- antitank missiles with Ukrai- special representative for —Paul Sonne and Dion
tion isn’t known. Defense Secre- cials say they worry that the sian officials have said in recent nian troops stationed away Ukraine in July, met European Nissenbaum in Washington
tary Jim Mattis has endorsed the conflict has intensified, with a days that any U.S. move to send from the front lines of the con- officials last week and said a contributed to this article.

Pence Rips Russia, Affirms NATO’s Role in Region

BY PETER NICHOLAS
TALLINN, Estonia—Vice
President Mike Pence issued
one of the Trump administra-
tion’s toughest attacks to date
on Russia, coming to a nation
on Russia’s border to warn
against aggression from the
“unpredictable neighbor to the
east.”
Mr. Pence on Monday said
President Donald Trump would
sign a bill passed by Congress
INTS KALNINS/REUTERS
tions. “At this very moment,
Russia continues to seek to re-
draw international borders by
force, undermine the democra-
cies of sovereign nations, and
divide the free nations of Eu-
rope one against another.”
Mr. Pence is in the midst of
a three-day overseas trip that
includes stops in two other
countries that Moscow has
seen as its traditional sphere
of influence: the former Soviet
state of Georgia and the Bal-
resolve. Flanking him were ar- for being one of just five in the
mored tanks and standing in NATO alliance to devote 2% of
front of the stage were hun- its gross domestic product to
dreds of U.S., British, French defense. The country of 1.3
and Estonian troops, hands million has pushed for more
clasped behind their backs. U.S. air cover for the region,
Moscow has accused the but NATO officials say its 183-
U.S. of threatening Russia by mile border with Russia would
pushing for the expansion of be hard to defend against a
NATO up to its borders determined Russian assault.
through the admittance of the A Rand Corp. study last
Baltic states and the inclusion year showed that Russia could
of Ukraine and Georgia. beat back NATO forces and
Before the speech, Mr. reach the outskirts of Tallinn,

that imposes new sanctions on
Russia, despite earlier reserva-
tions from the White House
and a promise from Moscow to
expel hundreds of U.S. diplo-
mats in return.
In a speech in Estonia on Monday, Vice President Mike Pence Mr. Pence said Russia must
called Russia the ‘unpredictable neighbor to the east.’ be held accountable for its ac-
kan state of Montenegro. His
repeated message is that the
U.S. won’t abandon allies liv-
ing in Russia’s shadow.
The vice president delivered
his remarks outside Estonia’s
defense headquarters, sur-
rounded by symbols of military
Pence and the presidents of the capital, in just a few days.
the three Baltic states, Latvia, In his 2016 presidential
Lithuania and Estonia, re- campaign, Mr. Trump often
ceived a private military brief- spoke of more cooperative
ing that opened with an offi- dealings with Russia, and de-
cer referencing the “eastern scribed NATO as obsolete. But
flank of NATO.” he has since toughened his
Mr. Pence praised Estonia line on Russia.

FROM PAGE ONE

CABLE Results Were Underwhelming.”

Discovery shares fell 8.2%
to $24.60, while Scripps rose
0.6% to $87.41.
mium to Scripps’s share price
before news of the talks was
reported on July 18.
The seeds of Monday’s deal
New Ratings Powerhouse
A combined Discovery and Scripps could leverage its 13.2%
ratings share to negotiate higher fees from distributors.
AMC spokeswoman declined to
comment.
John Malone, the cable mo-
gul who owns a nearly one-
Continued from Page One Under the terms of the were planted last November. third voting stake in Discovery
earnings reports, both of agreement, announced Mon- Discovery Chief Executive Da- Ratings share Affiliate-fees share and sits on its board, has long
which fell short of Wall Street day, Scripps shareholders will vid Zaslav and Scripps CEO called for consolidation among
expectations. That prompted receive $90 a share, $63 of Ken Lowe participated in a 18.5% Disney 34.4% content providers.
Marci Ryvicker, an analyst at which will be in cash and $27 a panel discussion about family The deal will lift the profile
Wells Fargo, to put out a note share in Class C Common values in the media at the Vat- of Mr. Zaslav, who had a two-
titled: “Well, Good Thing shares of Discovery stock. The ican, where they met with decade career at NBC before
17 Comcast
They’re Combining Because Q2 price represents a 34% pre- Pope Francis. The two have joining Discovery in 2007. He
been close friends for three has led a transition at Discov-
decades and often spend time 13.7 ery, which went from being
together in East Hampton, N.Y. 15.3 Fox known for its serious educa-
A HAIR LOSS TREATMENT Over dinner in Rome, the
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T H AT A C T U A L LY W O R K S ! 8.1 Discovery
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tiatives in getting content “Here Comes Honey Boo Boo.”
straight to the consumer. 5.3 Discovery said its second-
13.1 Viacom 1.7
Mr. Zaslav’s interest in quarter revenue rose 2% to
10.7
Scripps increased when he saw 11.4 Time Warner $1.75 billion, shy of analysts’ es-
how strongly Scripps had per- timates. Scripps lowered its
formed in Latin America. Exec- 11.2 revenue guidance and reported
8.4 CBS
utives at Discovery’s Home & 3.4 second-quarter U.S. advertising
Health channel earlier this year 3.1 AMC 2.7 sales growth of 2.2%, which
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content, but Mr. Zaslav already Source: RBC Capital Markets THE WALL STREET JOURNAL. close by early 2018, pending
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For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
THE WALL STREET JOURNAL. * * * * Tuesday, August 1, 2017 | A7

WORLD NEWS

China U.S. Hits Maduro With New Curbs

Blames The U.S. imposed sanctions

U.S. Over
against Venezuelan President
Nicolás Maduro, saying his
government abused human

North
rights and organized an illegit-
imate vote designed to advance
an authoritarian regime, as the
leader threatened his domestic

Korea opponents with imprisonment.

BY FARNAZ FASSIHI
UNITED NATIONS—China
lashed out at the U.S. on Mon-
day over North Korea, saying
Washington was ratcheting up
tensions with Pyongyang and
violating Security Council res-
olutions calling for restraint
By Ian Talley in
Washington and Juan
Forero and Anatoly
Kurmanaev in Caracas
The U.S. Treasury Depart-
ment’s move on Monday
freezes any assets Mr. Maduro
has within American jurisdic-
tion, putting him in a small
club of leaders it targets in-

RONALDO SCHEMIDT/AGENCE FRANCE-PRESSE/GETTY IMAGES

and dialogue.
China’s ambassador to the
U.N., Liu Jieyi, criticized the
U.S. for unilateral sanctions
that don't have the council’s
backing and for publicly say-
ing that Washington was keep-
ing all options on the table.
Joint U.S. and South Korean
military exercises in the Ko-
rean Peninsula, he added,
risked destabilizing the region.
“These developments run
counter to the obligations in
the Security Council resolu-
tions,” Mr. Liu said at a news
conference to mark the end of
China’s monthlong presidency
of the council.
North Korea fired two inter-
continental ballistic missiles in
July, with the most recent one,
on Friday, appearing capable
of reaching the continental
U.S. China and Russia have so
far not agreed with the U.S.
and its European allies, who
are demanding a new resolu-
tion imposing tougher eco-
nomic sanctions on Pyongyang.
Mr. Liu’s comments appeared
to be a response to comments
and tweets over the weekend
by President Donald Trump and
U.N. Ambassador Nikki Haley
that accused China of failing to
rein in North Korea. Mr. Trump
tweeted on Saturday that “they
[China] do NOTHING for us
with North Korea, just talk.
We will no longer allow this to
continue. China could easily
solve this problem!”
cluding North Korea’s Kim Jong
Un, Zimbabwe’s Robert Mugabe
and Syria’s Bashar al-Assad.
It was unclear if Mr. Maduro
had any U.S.-linked assets, but
the designation bans his access
to the U.S. financial and com-
mercial markets and prohibits
any American entity from con-
ducting business with him.
Caracas said 8.1 million
people voted on Sunday to
choose delegates to form an
assembly to write a new na-
tional charter. The results
drew scorn from many Vene-
zuelans and condemnation
from governments in Europe
and the Americas who say the
assembly will give the govern-
ment unchecked authority.
The results were a foregone
conclusion, since voters had
been asked to choose 545 del-
egates from 6,000 candidates
handpicked by the ruling
party. Critics of the vote said
it also was plagued by a lack
of independent observers and
safeguards to prevent people
from casting multiple ballots.
“Yesterday’s illegitimate
elections confirm that Maduro
is a dictator who disregards
the will of the Venezuelan peo-
ple,” U.S. Treasury Secretary
Steven Mnuchin said, adding
that Caracas used violence, re-
pression and corruption to
cow his opponents. The Trea-
sury warned that any officials
connected with the constituent
assembly created in Sunday’s
President Nicolás Maduro on Monday celebrated the results of Sunday’s vote to choose delegates to form an assembly to write a new
national charter, a poll that drew scorn from many Venezuelans and condemnation from governments in Europe and the Americas.
vote also risk U.S. sanctions.
The Treasury didn’t impose
oil-related sanctions even
though senior U.S. officials
had warned they were consid-
ering a ban of the petroleum
trade with Venezuela if Mr.
Maduro moved ahead with the
constituent assembly.
National security adviser
H.R. McMaster signaled at a
White House press conference
that the U.S. administration
showed restraint out of concern
some U.S. penalties could hurt
ordinary Venezuelans. Presi-
dent Donald Trump is “only
considering those options that
would benefit directly the Ven-
ezuelan people,” Mr. McMaster
said.
Last week, the U.S. leveled
sanctions on 13 high-ranking
Venezuelan officials for alleged
corruption, human-rights vio-
lations and undermining the
country’s democracy, warning
that any individuals who be-
came members of the constitu-
ent assembly risked being
added to the U.S. sanctions list.
Analysts and people familiar
with the matter say the latest
sanctions are part of a broader
set of escalating actions that
politically isolate the Maduro
government and complicate
any of its efforts to raise fresh
funds or sign new deals
through state-owned entities.
“It shows the seriousness of
the administration’s concerns
and sends a message that the
constituent assembly is not go-
ing to be accepted,” said Mark
Schneider, a senior adviser at
the Center for Strategic and In-
ternational Studies and former
top State Department official.
Mr. Maduro, a 54-year-old
former bus driver and union
leader, was handpicked by his
mentor, the late strongman
Hugo Chávez. A former law-
maker who helped rewrite the
constitution in 1999 under Mr.
Chávez, Mr. Maduro served sev-
eral years as Venezuela’s foreign
minister and vice president.
Since taking office in 2013,
Mr. Maduro has presided over
a nation in disarray. The eco-
nomic meltdown intensified
amid years of mismanagement
and a sharp drop in oil prices,
the country’s sole source of
hard currency. Soaring infla-
tion and severe shortages of
food and medicine have led to
widespread turmoil and an ex-
odus of Venezuelans from the
country. On Monday, he
threatened to imprison his ad-
versaries with imprisonment.
“Some will end up in a jail
cell,” Mr. Maduro said. “We are
going to write a new history.”
Mr. Maduro also said he
would look to force the oppo-
sition to sit down for negotia-
tions through a so-called truth
commission that he previously
said would be created by the
new constituent assembly.
Though he made his comments
in a threatening manner, Stalin
González, an opposition mem-
ber of congress, said that the
two sides needed to embark
on real negotiations.
—Ryan Dube, José de
Córdoba and Kejal Vyas
contributed to this article.
 Venezuelan bonds fall
following the vote................. B11

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For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
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A8 | Tuesday, August 1, 2017
INDIA
Continued from Page One
and Iraq ranked higher.
Indian Prime Minister Nar-
endra Modi made an improved
business climate a test of his
leadership. A chronic shortage
of judges hinders that goal. In-
dia has roughly 17,000 judges
to handle 30 million open
cases. About 40% of posts for
high-court judges remain va-
cant. Last year, then-chief jus-
tice T.S. Thakur wept when he
rebuked the Modi administra-
tion for moving too slowly. The
law ministry said it has insti-
tuted new courts and approved
dozens of new judges.
The judiciary, which picks
judges, and the government,
which approves them, are
locked in a power struggle. In-
dia’s supreme court in 2015
struck down a law that gave
the executive branch greater
sway in selection. Continuing
discord means appointments
aren’t being substantially
ramped up.
Allahabad’s High Court,
which is located in the state of
Uttar Pradesh in India’s north,
is housed in a majestic, colo-
nial-era stone building. Nearly
45% of the judicial positions
are unfilled.
10:10 a.m.
Arguments began in Court-
room 41 in the appeal of mur-
der convictions that had been
reached 34 years ago. Two
men found guilty in the case,
and freed on bail during their
appeal, had died without serv-
ing more than a few days of
their life sentence. To keep the
two others out of prison, men
now in their 70s, their lawyer
recounted an exculpatory ver-
sion of the August 29, 1982,
killing of a young farmer who
was fatally stabbed on his way
home from a local fair.
The judges shuffled through
documents and struggled to
reconcile conflicting testimo-
nies recorded more than three
decades ago. Were the eyewit-
nesses 10 steps away that
moonlit night or 100? Did the
digested food in the victim’s
stomach put the time of death
closer to 2 a.m. than 10 p.m.?
After hearing closing argu-
ments, the judges set a future
date for a verdict.
Half the cases due to be
taken up that day were post-
poned because court adminis-
trators hadn’t yet prepared
typed records for the hearings.
11 a.m.
Associates of civil lawyer
Manish Goyal fanned out to
keep track of his 34 lawsuits
listed on calendars in various
courtrooms at the Allahabad
courthouse. It isn’t possible to
predict which cases, if any, will
be called.
Most judges here are con-
sumed by the fire hose of new
cases—nearly 1,000 on this
day. They seldom get to the
hundreds of open ones, which
then carry forward to another
day and then another.
To stem the flow of new fil-
ings, Mr. Modi wants the gov-
ernment, party in 46% of pend-
ing lawsuits in India, to litigate
less. New legal desks are being
created to scrutinize official
orders, which are frequently
faulty and trigger disputes,
said P.P. Chaudhary, Minister of
State for Law.
One of Mr. Goyal’s cases,
filed in 2006, was called. A
DREAM
Continued from Page One
ovo in PyeongChang, South
Korea, in February. He finished
near the top in East Coast
races this winter and is cur-
rently racing in international
events in South Africa, Chile
and Argentina to try to earn
Olympic-qualifying ratings.
“It’s preposterous—but in-
triguing as all hell,” says Uni-
versity of Connecticut ski
coach Bruce Diamond, who
finished behind Mr. Sokoli at a
race this winter. “If anybody
can pull it off, I’m starting to
think it’s Nik.”
Mr. Sokoli’s quest calls to
mind other unlikely Olympians
of lore: the Jamaican bobsled
team that caught the public’s
imagination at the 1988 Cal-
gary games, and Michael “Ed-
die the Eagle” Edwards, who
took up ski jumping in part
because Britain had no other
Olympic athletes in the event.
Mr. Sokoli was born in Kos-
ovo in 1981, when it was still
part of Yugoslavia. He skied as
a child, but not seriously.
Crowds on a recent Thursday at the Allahabad High Court in Allahabad, India, where nearly 45% of the judicial positions are unfilled.
public-sector financial institu-
tion sold its client’s property
to recover a loan from the cli-
ent’s fertilizer company. The
client sued.
Proceedings in the case
lasted about a minute. One of
the parties was granted an-
other week to prepare objec-
tions to a filing Mr. Goyal had
made 10 years ago. During that
period, the case had surfaced
in court at least 25 times. Usu-
ally, lawyers for one side or the
other hadn’t shown up because
they were busy in other courts,
or they had filed “illness slips,”
a major cause of delays.
11:30 a.m.
Waiting anxiously in the
back of a nearby courtroom,
Mohammad Aqeel Hasan, a 27-
year-old farmer, has lost count
of the number of court trips he
has made from his village. He
said he was sure it was fewer
than his father had made in
the 1983 lawsuit against their
neighbor. Each side claims
ownership of land between
their properties.
His father had won a swift
victory in a lower court, but
the decision was overturned on
appeal. His father’s appeal of
that decision has been pending
since 1986. A few years ago,
when his father could no lon-
ger travel, Mr. Hasan took over.
“At this rate, the case will
go on for hundred years,” Mr.
Hasan said. Court appearances
require a 10-hour journey by
train from his village.
Mr. Hasan’s case came and
went in a heartbeat. The other
side’s lawyer had sent an ill-
ness slip, forcing a delay.
“Not well again?” the judge
said, and he moved the hearing
to another month.
Mr. Hasan was crest-
fallen. “Coming to court is not
easy,” he said, heading to the
railway station for his trip
home. “The lawyer just puts an
application he’s not well and
the case gets adjourned. It’s
very unfair.”
12 p.m.
Justice Vipin Sinha’s court
was packed with black-robed
lawyers awaiting their turn.
The judge tackled requests for
bail at the rate of one every
two minutes. The man accused
of abetting a homicide is 68
years old with no criminal his-
Besnik Sokoli uses a ski machine to train in the basement of one
of the Brooklyn buildings where he works as a superintendent.
Boxing was his sport. Com-
pact and powerful—today he
crams 190 pounds into his 5-
foot-7 frame—Mr. Sokoli
fought his way to the finals of
the Pristina city champion-
ships at 14. Before the bout, he
proudly told his dad that at
least he would get silver.
His father, he says, slapped
him and yanked him from the
tournament for displaying an
insufficient desire to win. Mr.
Sokoli sees the episode as a
valuable lesson. “I’m not going
IN DEPTH
India's Caseload Hits Overload
A court backlog has eroded the rule of law in the world’s largest democracy and impeded economic
growth. Foreign investors worry about getting buried in notices, hearings and appeals—with no effective
way of resolving disputes.
Number of ongoing court cases
in India
30 million cases
20
10
0 0
1995 2000 ’05 ’10
Years to adjudicate high-court
cases†
Less than 5 years 5–10 years
10–15 years More than 15 years
4.6% 6.0%
2.5%
86.8%
Of 37,151
cases
*Does not include the approximately 1,000 new cases scheduled, only cases that have been seen at least once before
†For Bombay, Gujarat, Orissa, Kerala high courts, as of Feb. 15, 2016
Sources: Law Ministry as told to India's Parliament (total cases); High Court of Judicature at Allahabad (age of Allahabad cases);
DAKSH database (years to dispose of other high-court cases); World Bank (commercial cases)
tory: bail granted. An uncle ac-
cused by his niece of molesta-
tion: bail rejected.
His docket that morning
was made up of new cases
from previous days that he
hadn’t had time to adjudicate,
a category called “backlog
fresh.” At 12:30 p.m., he
glanced at the clock and asked
his clerk, “How many?”
“233,” the clerk said. Justice
Sinha was at 85. Another list,
of older cases heard at least
once but not yet decided, also
awaited his attention.
“The rest will have to be
transferred,” he said with res-
ignation. Hundreds of cases,
unheard for lack of time, would
be distributed among other
judges.
“Five more, your lordship,”
lawyers pleaded, and the judge
agreed.
to go to the Olympics to expe-
rience it and have fun,” he
says. “I’m going to push as
hard as I can to do way better
than I think I can.”
By the time Mr. Sokoli
reached his late teens, Yugo-
slavia had splintered.
Mr. Sokoli and his parents
resettled in Arizona when he
was 18.
In 2006 he met Brooklyn-
born Flutura Qosaj through Al-
banianPersonals.com and
moved to New York. Now the
The year of origin for cases scheduled to be heard in Allahabad
High Court on July 31*
1,000 cases
750
500
250
’17 1974 ’80 ’90
Average days to resolve a simple commercial dispute in one court
Afghanistan
India
Pakistan
Canada
Brazil
South Africa
Iraq 520
China 453
U.S. 420
Mexico 341
Russia 337
THE WALL STREET JOURNAL.
“Basic liberty is at stake
here,” Justice Sinha said later
in an interview. “But how can I
hear them all?”
1 p.m.
The lunch hour drove doz-
ens of lawyers and litigants
into the corridors of the court-
house, a city landmark built by
the British 100 years ago.
Shanti Devi, a sari-clad
woman, sipped tea outside
Courtroom 41, where her son’s
murder appeal was scheduled
for an “expedited” hearing. He
had spent 13 years in prison.
Ms. Devi, 69 years old,
makes $20 a month washing
dishes. She said she wasn’t
sure how her son was con-
victed. The trial lawyer they
could afford didn’t produce
witnesses or attempt to prove
couple, their three young chil-
dren and Mr. Sokoli’s mother
share a two-bedroom apart-
ment that comes with his job.
The Sokolis bought a small
STEVE REMICH FOR THE WALL STREET JOURNAL
house in the Poconos so their
children could grow up skiing.
On a lark, Mr. Sokoli entered a
giant-slalom race in January
on Belleayre Mountain. N.Y. He
won, and was hooked.
A third place at Bear Creek
Mountain Resort. A first place
at Shawnee Mountain Ski
Area. Each time, he attracted a
throng of curious racers.
“We saw him coming down
pretty fast, and we noticed
that he didn’t have a perfect
technique, but he had huge po-
tential,” says French skier
Tristan Mollet, who coaches at
Shawnee and finished behind
Mr. Sokoli.
Soon Mr. Sokoli was hitting
races every weekend and some
weekdays, bolting from the
city after 10 hours at work.
Two months in, he returned
home late from a race and sat
with his wife at the cramped
kitchen table. “How serious is
this?” she asked.
“I’m taking this to the
Olympics,” Mr. Sokoli replied.
THE WALL STREET JOURNAL.
lawyer, got word of a big case
that had been in and out of
courts since 2009. His clients
have challenged the acquisi-
tion of their land, ostensibly
intended for industrial devel-
opment and new roads.
Across India, such emi-
nent-domain acquisitions are
bogged down in disputes over
compensation or allegations
the government misused the
property.
A bench of two judges had
earlier heard arguments and
held the case to write a judg-
ment. When one of the judges
retired without completing it,
the case had to be argued
again.
“There’s no urgency,” the
VIVEK SINGH FOR THE WALL STREET JOURNAL
judge said when the case was
called. “We’ll hear it at
length when there’s more
time.”
4 p.m.
Justice Sinha’s bail court
erupted in an uproar at ad-
journment. Lawyers with
pending cases all shouted for
attention. “Our bail is unop-
posed,” one pleaded.
“He’s been in jail for two
years,” another said.
Justice Sinha dispensed
early hearing dates for those
cases before leaving.
4:30 p.m.
After the courtrooms
closed, the activity shifted to
processing rooms that store
case files. Porters hoisted
rope-tied bundles onto their
shoulders and hauled them
up to courtrooms for the next
day’s docket. Others brought
that day’s files back from
courtrooms.
Tattered stacks of case pa-
per were piled on racks, ta-
bles, chairs and the floor.
Towers of folders spilled into
corridors where passersby
2000 ’10 toppled smaller stacks. Files
from 2015 mixed with ones
from 2016 and 2017, creating
a nightmare for officers
struggling to locate hundreds
of them every day.
1,642
On a stuffy third floor,
1,420 Amit Kumar Yadav, age 35,
1,071 squeezed sideways through
910 dust-laden stacks, then pulled
himself up on his toes and
731
vaulted over the paperwork
600 that carpeted the floor.
After an eight-hour hunt,
he was still missing 17 of 65
files for the next day’s hear-
ings. Those cases won’t be
heard.
To replace paper records,
the court has hired teams
that are scanning and coding
documents as far back as
1863, a trove of ink-pen cal-
ligraphy. It will take some
years.
her son’s alibi, records show.
“Police investigations are
shoddy; lower court decisions 9 p.m.
are often overturned,” said On the other side of the
Sriprakash Dwivedi, her son’s city, lawyers prepared for an-
appeals lawyer. “But that can’t other day of bail applications,
happen unless the appeal is appeals, petitions and delays.
heard, right? Cloth-covered bundles tucked
After lunch, the judges were away in the office of Mr.
confused about whether a sec- Dwivedi, the criminal lawyer,
ond convict in the case, listed are labeled 2008, 2009 and
as free on bail, was dead or 2010. “Maybe my children
alive. They issued an arrest will handle these,” he said.
warrant to learn. Sliding his finger down his
“What about my son who is list of cases for the next day,
living?” asked Ms. Devi, teary- Mr. Dwivedi enumerated the
eyed. “What is the meaning of potential roadblocks for each
justice? If the court finds him of them: Case won’t come up;
not guilty, will they give us opposing lawyer won’t turn
these 13 years back?” up; judge is too slow.
Looking at one of the
cases, he smiled and said:
3:34 p.m. “I’m going to stall this one
With only a few minutes of until the judge changes. This
court left, Mr. Goyal, the civil judge doesn’t give bail.”
He jotted down his estimate
of how much he would have to
spend: $17,000.
Mrs. Sokoli reached for the
state isn’t going well economi-
cally.”
The Sokolis maxed out their
credit cards, and in April Mr.
paper. “The last thing I want Sokoli traveled to Norway for
for you,” she told her husband, his first qualifying race. As
“is to be 80 years old, sitting usual, he drew a crowd.
on the couch watching the “There was one guy on bad
Winter Olympics and wonder- skis,” recalls Austrian-born Si-
ing if I could have made it.” mon Breitfuss, the sole skier
Mr. Sokoli could qualify for on the Bolivian men’s team.
the Olympics only by entering “His [gear] was like a tourist’s,
races that allotted Interna- not for racing.”
tional Ski Federation, or FIS, Canadian Johnny Davidson,
points. Competitors begin with coach of the Norwegian team,
990 points, and reduce that spotted Mr. Sokoli. His first
number the better they per- thought: “This guy looks really
form. Mr. Sokoli needs to old.” Every man on the Norwe-
reach around 130 points to gian team had started skiing
race in South Korea. before the age of 4; one of
He called the Kosovo Ski them lent Mr. Sokoli skis that
Federation, which cheerfully met FIS standards.
added him to the small na- Mr. Sokoli finished last in
tional team and endorsed his both slalom and giant slalom.
entry into Olympic-qualifying But he finished; about a third
races. If he makes it, the fed- of the racers didn’t make it
eration promises a racing suit, through the slushy course.
a helmet and a hat and jacket On Friday, in his first sla-
for the opening ceremony. lom race in South Africa, he
Maybe some skis. finished 44th out of 56 en-
“Unfortunately we don’t re- trants and slashed his FIS
ally have much equipment to points to 258.74.
give him,” says Selim Maloku, Says Mrs. Sokoli: “One-hun-
secretary-general of the Feder- dred percent he believes he’s
ata Skitare e Kosoves. “Our making it to the Olympics.”
 For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
THE WALL STREET JOURNAL.
GREATER NEW YORK
Shake-Up Looms at Top of Port Authority
BY PAUL BERGER
The governors of New York
and New Jersey are preparing
to overhaul the leadership of
the Port Authority, the bistate
agency that controls the re-
gion’s airports, ports, bridges
and tunnels.
The changes would see the
departure of two leaders who
steered the agency through
the aftermath of the 2013
George Washington Bridge
lane closure scandal. The ma-
jority of the agency’s board
underwent changes in the past
year.
Likely on their way out, ac-
cording to people familiar
with the Port Authority’s
workings, are Executive Direc-
tor Pat Foye and Chairman
John Degnan.
A spokesman for New York
Gov. Andrew Cuomo, a Demo-
crat who appoints the
Man Pleads Guilty in Holland Tunnel Guns Case
ANDREW MACLEAN/NJ ADVANCE MEDIA/ASSOCIATED PRESS
CONTROVERSIAL FIGURE: John Cramsey, left, arrested last year in a truck filled with guns, pleaded guilty Monday to weapons
charges in Jersey City. He has said he was trying to rescue a teen at risk from drugs and vowed to continue his fight. A8B
Mayor’s Approval Falls, but He’s Still Favorite
BY MELANIE GRAYCE WEST
New York City Mayor Bill de
Blasio’s approval rating is down
by double digits this summer,
his steepest-ever drop, but he
still has a commanding lead
over his Republican challenger
ahead of the November elec-
tion, a new poll shows.
Roughly 50% of New Yorkers
approve of the job Mr. de Blasio
is doing while 42% disapprove,
according to a Quinnipiac Uni-
versity poll released Monday.
That is a 10-point fall from the
university’s poll in May, when
the mayor’s approval rating hit
a high of 60%, and puts his
numbers more in line with his
average since taking office.
Even so, Mr. de Blasio re-
mains tops with would-be vot-
ers. If the election were held
today, according to the poll,
57% of respondents favor Mr.
de Blasio, while 22% said they
would vote for Republican Ni-
cole Malliotakis.
New York City voters were
evenly split—46% to 46%—
Push to Keep Beaches Open in a Shutdown
BY KATE KING
New Jersey lawmakers
don’t want a repeat of this
year’s July Fourth holiday
weekend, when a state govern-
ment shutdown closed state
parks and beaches, infuriating
residents.
The state Assembly passed
two bills on Monday. The first
would keep state parks, for-
ests, recreation areas and his-
toric sites open for up to seven
calendar days in the event of a
government shutdown.
Another would prohibit the
governor from using any resi-
dential property owned by the
state during government clo-
sures. That bill, which
wouldn’t apply to the gover-
nor’s official residence in
Princeton, would bar the gov-
ernor or his family from using
a state-owned beach house at
* * * *
A PATH train sits in Hoboken before heading into Manhattan.
agency’s executive director,
declined to comment. A
spokesman for Republican
New Jersey Gov. Chris Chris-
tie, who appoints the chair-
man, didn’t respond to a re-
when asked whether Mr. de
Blasio “deserves re-election.”
The poll is “lousy on all
sorts of numbers,” said Maurice
Carroll, assistant director of the
Quinnipiac University Poll. “But
forget all the other questions.
How’s he doing against the Re-
publican? He eats her alive.”
A spokesman for the mayor
said: “Polls go up and polls go
down. Our campaign is about
the mayor’s record and vision
for the future.”
Malliotakis campaign
spokesman Rob Ryan said,
“What this poll shows is a ma-
jority of New Yorkers don’t like
Mayor de Blasio’s handling of
public schools, the homeless
crisis, corruption and the city
budget. With common sense
solutions, Nicole Malliotakis is
clearly the only candidate who
can defeat a mayor who simply
doesn’t care.”
Voters disapproved of the
mayor’s job handling schools,
political corruption and, espe-
cially, poverty and homeless-
ness, with 63% of respondents
Island Beach State Park in
Ocean County.
Republican Gov. Chris Chris-
tie was widely criticized for
spending the Fourth of July
weekend at the state’s ocean-
front residence during the shut-
down. The Star-Ledger photo-
graphed him sitting with family
and friends on the beach, which
was closed to the public.
“There were families that
were planning to go to Island
Beach State Park and other
parks, but because of the shut-
down they weren’t able to go
on their vacations,” said As-
semblyman John Wisniewski,
a Democrat from Middlesex
County who sponsored the
bill. “The governor chose to
rub salt in the wound to all
those families.”
Both bills need approval
from the state Senate before
they can go to the governor. A
NY
York’s governor over New Jer-
sey’s desire for an agency
commitment to build a new
Port Authority Bus Terminal
in Midtown Manhattan.
He is expected to be re-
placed by Kevin O’Toole, a for-
mer New Jersey state senator
who was appointed to the
agency’s board by Mr. Christie
KATHY WILLENS/ASSOCIATED PRESS
earlier this year, according to
people familiar with the
agency.
Mr. Foye is expected to be
replaced by Rick Cotton, an
aide to Mr. Cuomo, according
to Politico, which reported the
leadership shake-up earlier.
Mr. Foye was appointed to the
top executive position in 2011.
In September 2013, Mr.
quest for comment. Foye was blindsided when two
Mr. Degnan assumed the New Jersey appointees at the
board chairmanship in July agency, Deputy Executive Di-
2014. He has been a thorn in rector Bill Baroni and his lieu-
Mr. Cuomo’s side, clashing pri- tenant, David Wildstein, shut
vately and publicly with New down access lanes to the
cover the cost of attorneys hired
to represent him during recent
state and federal investigations
into alleged City Hall corrup-
tion, according to the poll.
State and federal prosecutors
said in March they wouldn’t
bring charges in the fundraising
investigations into the mayor
and his close allies. The mayor
had long said that he and his al-
lies did nothing wrong.
Meanwhile, New Yorkers
also gave President Donald
Trump his lowest ratings yet,
with 79% saying they disap-
prove of the job he is doing. It
is the lowest net approval rat-
ing for any president, in any
state or national poll, con-
ducted by Quinnipiac Univer-
sity in more than 20 years, the
pollsters said.
A White House spokes-
woman didn’t respond to a re-
quest for comment.
saying that they disapprove of The poll of 877 New York
his handling of the city’s grow- City voters conducted July 20
ing homeless problem. to July 26 has a margin of error
More than three out of four of plus or minus 4.1 percentage
voters want Mr. de Blasio to points.
spokesman for state Senate
President Steve Sweeney said
“we need to review the bills
before making any decisions.”
A spokesman for Mr. Chris-
tie declined to comment on
pending legislation.
The state parks and beaches
were closed for three days in
early July after Mr. Christie
and Democratic lawmakers
were unable to reach an agree-
ment on the state budget.
Assemblyman John
McKeon, a Democrat, said the
bill to keep beaches open is
intended to protect New Jer-
sey residents from having Gov. Chris Christie was criticized for hitting a beach closed to the public by a government shutdown.
their holiday weekends ruined
by government closures. legislation in 2008, which al-
“It’s just not fair to hold lowed state-regulated casinos
the citizens of the state hos- and racetracks to continue op-
tage,” he said. “Those vaca- erating for up to seven days
tions, those memories, that during government shut-
recreation time is lost.” downs. The bill stemmed from
Lawmakers passed similar a 2006 budget dispute be-
Tuesday, August 1, 2017 | A8A
George Washington Bridge in
Fort Lee in an act of political
retribution.
The shutdowns caused crip-
pling traffic jams, and were
intended to punish Democratic
Fort Lee Mayor Mark Sokolich
for not endorsing Mr. Chris-
tie’s 2013 re-election bid.
A subsequent criminal trial
revealed how Mr. Christie’s al-
lies used the agency to court
political goodwill. Mr. Christie,
whose political career was
hobbled by the scandal, rejects
those assertions and was
never charged.
Mr. Wildstein pleaded
guilty to two felony counts
and was sentenced to proba-
tion in July. Mr. Baroni was
convicted and is appealing a
two-year prison sentence.
In the wake of the scandal,
the governors announced
wide-ranging reforms meant
to depoliticize decision-mak-
Police Kill Man
Who Charged
With a Knife
BY ZOLAN KANNO-YOUNGS
AND THOMAS MACMILLAN
A New York Police Depart-
ment officer shot and killed a
man in a Brooklyn apartment
Monday as he approached offi-
cers with a knife, according to
authorities.
The man was identified by
a law-enforcement official as
Dwayne Jeune, 32 years old.
The shooting came after
four officers were dispatched
to 1370 New York Ave. in East
Flatbush in response to a 911
call from the mother of a non-
violent emotionally disturbed
man, New York Police Depart-
ment Chief of Patrol Terence
Monahan said.
The officers knocked on the
door of the apartment and
were let in by a woman.
“When the officers entered the
apartment, they were charged
at by a man with a large carv-
ing knife,” Chief Monahan
said.
An officer struck the man
with his stun gun but it had no
effect, Chief Monahan said. A
second officer fired his gun
and hit the man in the chest.
The man was declared dead at
the scene.
Chief Monahan said police
don’t yet know how many
shots were fired. Only one of-
ficer fired his gun.
The officers were taken to
the hospital per NYPD proto-
col of shooting incidents. They
were given a psychological
evaluation and treated for tin-
nitus.
Regina Blain, 22, said she
heard four gunshots from
her apartment across the
courtyard of the housing
complex where the incident
occurred.
She said the man who was
shot was known in the neigh-
borhood as mentally dis-
turbed but harmless. He
would talk to himself and ex-
hibit odd behaviors like
stomping his feet as he
walked, Ms. Blain said.
She said he lived with his
tween lawmakers and then-
Gov. Jon Corzine that closed
Atlantic City casinos.
New Jersey lawmakers also
voted Monday to retroactively
pay state workers who were
furloughed during the govern-
ing at the agency.
Chief among them was a
plan to merge Mr. Foye’s and
Mr. Baroni’s positions with an
apolitical chief executive.
The Port Authority’s board
launched a nationwide search
for a CEO in 2015. Mr. Degnan
suspended that search in June,
citing a failure to find a candi-
date acceptable to both gover-
nors.
Under the proposed re-
forms, the chairmanship of the
agency was supposed to rotate
between the states every two
years. The two imminent ap-
pointments show that, for now
at least, those reforms are
stalled.
The governors each appoint
six members to serve on the
agency’s 12-member board. Of
the current commissioners,
excluding Mr. Degnan, four
have served for longer than
six months.
parents and was never threat-
ening or dangerous. “He’s a
cool person.”
The NYPD’s policy for emo-
tionally disturbed people is to
isolate and contain. Police are
trained to take their time and
try to de-escalate the situa-
tion.
Police are also told to re-
quest backup from the NYPD’s
emergency-services unit for
reports of emotionally dis-
turbed persons. It wasn’t clear
if members of that unit ar-
rived at the scene before the
shooting.
The way police handle such
incidents came under scrutiny
last year, when an NYPD ser-
geant shot and killed a 66-
year-old emotionally disturbed
woman in the Bronx. Sgt.
Hugh Barry shot Deborah Dan-
ner after she approached him
with a bat, police said. Com-
missioner James O’Neill called
Officers responded to a
call from the mom of a
nonviolent emotionally
disturbed man.
the October 2016 shooting
“unacceptable” at the time.
Sgt. Barry was carrying a
stun gun but didn’t use it. He
was indicted on second-degree
murder and manslaughter
charges in May. He has
pleaded not guilty. Ed Mullins,
president of the Sergeants Be-
nevolent Association, said pre-
viously that Sgt. Barry should
be acquitted and the commis-
sioner and the city were too
quick to pass judgment on
him.
The NYPD has looked to im-
prove its policing of the men-
tally ill. Since June 2015, more
than 5,000 of the department’s
36,000 officers have taken Cri-
sis Intervention Training, in
which police practice defusing
the situations.
ANDREW MILLS/NJ ADVANCE MEDIA/ASSOCIATED
ment shutdown, two days of
which fell on the weekend.
The bill, approved by the
Senate earlier this month, now
goes to Mr. Christie. The gov-
ernor has said he would sign
the legislation.
 For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
A8B | Tuesday, August 1, 2017
FROM TOP: JULIETA CERVANTES; JOHN TAGGART FOR THE WALL STREET JOURNAL
Broadway Hits Record-Setting Pace
BY CHARLES PASSY
Broadway is having a
booming summer.
Tickets are selling at a re-
cord-setting pace, with grosses
for the current season, which
began in late May, reaching
$327 million through Sunday,
according to the Broadway
League, a trade group. That is
a 20.5% increase over sales for
the same period last season.
Attendance also is surg-
ing—up 6.9% over last season
to 2.8 million.
The boom is being driven in
part by high-profile shows that
were honored at this year’s Tony
Awards. Among the most note-
worthy: The revival of “Hello,
Dolly!,” starring Bette Midler. It
has topped $2 million a week at
the box office six out of the past
eight weeks, a rare achievement
for a new production.
Just as important, say in-
dustry insiders, is how hit
shows are maximizing revenue
through various strategies, in-
cluding premium pricing for
the best seats. At “Hello,
Dolly!,” such tickets went for
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The revival of ‘Hello, Dolly!,’ starring Bette Midler, top, and
‘Charlie and the Chocolate Factory’ are drawing big audiences.
up to $748 last week.
Broadway also is benefiting
from the fact that shows that
received little to no critical ac-
claim or award recognition
also are finding an audience. A
case in point: “Charlie and the
© 2017 Dow Jones & Co., Inc. All rights reserved. 3DJ5795
NY
GREATER NEW YORK
Chocolate Factory,” which is
selling $1 million-plus in tick-
ets weekly, and typically draw-
ing audiences at 90% capacity
or higher. This is despite the
fact the show was largely
panned by reviewers and
failed to garner even a single
Tony nomination.
“At the end of the day
what’s moving tickets is word
of mouth,” said Ken Davenport,
a veteran Broadway producer.
Long-running hits also are
factoring heavily into the box-
office boom. “Hamilton” re-
mains Broadway’s biggest
draw and has topped $3 mil-
lion a week for much of the
current season.
Another continuing success
story is “The Book of Mormon,”
which took in $1.3 million this
past week.
The musical, which opened
in 2011, passed $500 million in
cumulative sales this past
month, making it only one of a
handful of Broadway shows to
hit that mark.
Broadway’s boom may not
end anytime soon, especially
as new shows come aboard.
Just this past week, “The
Terms of My Surrender,” a
one-man show created by and
starring provocative film di-
rector Michael Moore, opened
in previews and played to
nearly full houses.
Low-Income Arts Students Get a Shot
BY MARIANA ALFARO
Voice coaches, dance train-
ers and mock auditions are an
impossible dream for many
children who dream of making
it into one of New York City’s
top arts high schools. Their
families can’t afford it.
On Monday, about 240 chil-
dren from low-income New
York City families began a free
two-week program at Lincoln
Center to bridge that gap.
The city’s Department of
Education said it doubled the
number of students in the pro-
gram this year after many
children were accepted last
year in competitive public high
schools such as the Fiorello H.
LaGuardia High School for the
Performing Arts in Manhattan.
The program, in its fourth
year, aims to “level the field”
among public-arts high
schools, said schools Chancel-
lor Carmen Fariña. On Mon-
day, she greeted the giddy stu-
dents ready for a full day of
practices and performances.
The Department of Educa-
tion said more than 90% of the
135 students who participated
in last year’s boot camp were
GREATER NEW YORK WATCH
BRONX
Courtroom to Clear
Low-Level Offenses
New Yorkers will have a
chance to have summons war-
rants for low-level offenses dis-
missed this Saturday at a “mo-
bile courtroom” inside a church
in the Bronx, the borough’s Dis-
trict Attorney Darcel Clark
said Monday.
People who don’t take care of
a summons for a quality-of-life
offense eventually can face an
arrest warrant. The mobile
courtroom program allows peo-
ple cited for minor crimes such
as consumption of alcohol in
public, public urination or disor-
derly conduct to go to East-
chester Presbyterian Church in
the Bronx on Saturday and have
their violation cleared from their
record.
“It provides people from all
five boroughs with an opportu-
nity to reduce the chance that
when they least expect it, a mis-
* * THE WALL STREET JOURNAL.
Ex-Nanny Says She
Didn’t Recall Stabbing
BY CORINNE RAMEY should be barred because an
attorney wasn’t present, and
A former Manhattan nanny she was drugged and confused.
said she doesn’t remember what On Nov. 4, 2012, the nanny
happened during the time in told Dr. Dubin she didn’t re-
which she is accused of fatally member what happened in the
stabbing two children in 2012, a bathroom, but recalls being
psychiatrist testified Monday. picked up by an ambulance at
“ ‘I don’t remember, I don’t the apartment, Dr. Dubin said.
remember,’ ” the psychiatrist, Ms. Ortega, now 55, had
Marc Dubin, said the nanny worked for Marina and Kevin
told him 10 days after the Oct. Krim for about two years.
25, 2012, incident while she Dr. Dubin testified that Ms.
was hospitalized at New York- Ortega said that until a month
Presbyterian/Weill Cornell before, she had a good rela-
Medical Center. tionship with Ms. Krim, the
Prosecutors contend Yoselyn children’s mother. At that
Ortega killed 6-year-old Lucia time, Ms. Ortega told him, she
“Lulu” Krim and her brother had a disagreement with Ms.
Leo, who was five days shy of Krim about a switch from full-
his second birthday, in a bath- time to part-time work, which
room in the West 75th Street would require her to take a
home where she worked. second job.
The case of Ms. Ortega, who “She mentioned that the
has pleaded not guilty, is mother had abruptly reduced
scheduled to go to trial in Sep- her hours and was critical of
tember in state Supreme Court her,” Dr. Dubin said.
in Manhattan. She is charged Ms. Ortega also said Ms.
with two counts of first-de- Krim had humiliated her in
gree murder and two counts of front of the children’s school.
second-degree murder. On Monday, prosecutor Stu-
On Monday, during a hear- art Silberg said Ms. Ortega
ing to evaluate whether cer- could have been malingering, or
tain statements would be al- faking her psychiatric state. Dr.
lowed to be included during Dubin disagreed, saying her
the trial, Dr. Dubin relayed de- mental state wasn’t sound
tails of his 2012 evaluation. enough to deceive.
Ms. Ortega, who prosecu- “To malinger you have to be
tors say stabbed herself in the cognitively intact, and she was
neck after killing the children, not,” he testified.
was hospitalized following the Justice Gregory Carro will
incident. Ms. Ortega’s lawyer rule on whether Ms. Ortega’s
has argued the statements statements will be allowed.
KEVIN HAGEN FOR THE WALL STREET JOURNAL
Former nanny Yoselyn Ortega, right, is set to go to trial in the
2012 stabbing deaths of two children in Manhattan in September.
admitted to an arts-based high “Arts are a critical part of a
school or program. student’s educational experience
At the Brooklyn High and the Audition Boot Camp
School of the Arts, 57% of stu- helps level the playing field for
dents last year were either liv- hundreds of students interested
ing in public housing, eligible in attending our city’s arts
for the free-lunch program or schools,” Ms. Fariña said.
received some sort of public For the next two weeks, the
assistance. Other public-arts students will hone their craft
high schools had lower rates. with teachers and artists from
Lincoln Center, New York City
Ballet, the Juilliard School and
the New York Philharmonic,
among others.
Russell Granet, Lincoln Cen-
ter’s executive vice president
of community engagement,
said the program fills a need in
New York City to train young
artists, regardless of their
plans to pursue their passions
JOHN TAGGART FOR THE WALL STREET JOURNAL
as a long-term career.
As she dropped off her 12-
year-old daughter at Lincoln
Center, Elizette Benitez said the
program is an opportunity for
the girl, a dancer, to see what
the audition process is like.
Ms. Benitez said her daugh-
ter is unsure if she will pursue
dancing, but “she’s been doing
dance forever, so she was like,
‘Why not?’
Jaida Ortiz auditioned in 2016 “I just want her to try her
at Lincoln Center in Manhattan. best and just to see what it is.”
take from years ago can come
back to haunt them,” Ms. Clark
said.
ney can apply for a probationary
sentence that wouldn’t include
prison.
Other district attorneys Mr. Cramsey, who was
around the city have held similar spurred to action last year by
warrant forgiveness programs in his daughter’s death from a drug
recent years. This is the second overdose, said Monday that sav-
annual “Another Chance” event ing others from opioid addition
in the Bronx, Ms. Clark said. Last has become his calling.
year, 500 people attended and —Associated Press
355 warrants were cleared.
—Zolan Kanno-Youngs BRIDGEPORT
JERSEY CITY Girl, 5, and Man Hit
Man Caught in Truck By Stray Gunfire
With Guns Takes Plea Authorities say a 5-year-old
Connecticut girl and a man have
A man arrested in a truck been struck by stray gunfire.
filled with guns during an at- Police say the girl was struck
tempt to rescue a teenager he in the left hand while inside a
thought was in drug trouble Bridgeport home at about 11
pleaded guilty to weapons p.m. Sunday. An adult man was
charges Monday. grazed in the head, possibly by
John Cramsey, a 52-year-old the same shooter.
gun-range owner from East Police spokesman Av Harris
Greenville, Pa., was arrested with said it doesn’t appear as if ei-
two others last year near the ther victim was targeted. Both
Holland Tunnel in Jersey City. are expected to survive.
Under the plea deal his attor- —Associated Press
 For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
THE WALL STREET JOURNAL. Tuesday, August 1, 2017 | A9

LIFE&ARTS

‘The Glass Castle’ cast, from left,

Sadie Sink, Charlie Shotwell, Ella
Anderson, Woody Harrelson and
Naomi Watts and Eden Grace
Redfield. Above right, author
Jeannette Walls with her real-life
mother Rosemary.

CLOCKWISE FROM TOP LEFT: LIONSGATE; CIRCE HAMILTON/CAMERA PRESS/REDUX; HBO; GETTY IMAGES (2)
FILM

What It’s Like to Watch

A Movie About Your Life
From ‘The Glass Castle,’ to ‘Stronger,’ to ‘The Big Sick,’ a wave of memoirs adapted
to film provide emotional experiences for real-life subjects
BY CARYN JAMES
IN “THE GLASS CASTLE,” based
on Jeannette Walls’ best-selling
memoir, Brie Larson plays the pro-
tagonist Jeannette, a successful
magazine writer in New York. Like
the book, the film is largely a flash-
back to her girlhood, when the fam-
ily was often homeless and hungry,
and to her relationship with her
charming, brilliant, alcoholic father.
During a visit to the movie set,
Ms. Walls watched a scene in which
Jeannette leaves home for New
York and her father, played by
Woody Harrelson, pleads with her
to stay. Ms. Walls was so distressed
that she apologized to Mr. Harrel-
son when the scene was over. “He
hugged me and said, ‘You had to do
it, Honey, or we wouldn’t be here.’
He said it in Dad’s voice. So 40
years after I walk out on my father,
I get absolved by him.”
A wave of memoirs and fact-
based movies are coming to the
screen this year, highlighting the
popularity of non-fiction in print
and film. The real people watching
their stories portrayed by actors say
the experience is sometimes comic,
and often so emotionally raw that
they see themselves in a new light.
For Emily Gordon, who co-wrote
the current hit romantic comedy
“The Big Sick” with her husband
Kumail Nanjiani, the line between
movies and life sometimes wa-
vered. Mr. Nanjiani plays himself in
sion of everybody who was over
there,” in Iraq. He was fine with
details being changed, such as his
largely fictionalized friendship
with another soldier, as long as
the message about dealing with
trauma remained. He cried
throughout his first viewing of the
movie, “because they got the way
it feels, the way everything is kind
of a mess when you come back.”
Rebecca Skloot wrote the book
“The Immortal Life Of Henrietta
Lacks,” about a family’s search for
the true story of their mother,
whose cancer cells were used for
medical research. In the HBO film,
Henrietta Lacks’ daughter, Deborah,
who died before the book was pub-
lished, is played by Oprah Winfrey,
and the fictionalized Rebecca is
Boston marathon bombing survivor Jeff Bauman, above left, with Jake played by Rose Byrne. A consultant
Gyllenhaal at Fenway Park. Above middle, Rose Byrne and Oprah Winfrey in on the film, Ms. Skloot insisted on
‘The Immortal Life of Henrietta Lacks.’ Real-life husband and wife Kumail some points, such as having Rebecca
Nanjiani and Emily V. Gordon co-wrote ‘The Big Sick.’ ask permission before turning on a
tape recorder for an interview. The
the film. Zoe Kazan plays Ms. Gor- by Miles Teller in “Thank You For character is a journalist with her
don, who falls ill and is put into a Your Service.” Set for release in name, she says, and she was pro-
coma while doctors diagnose her October, the film is based on David tecting her professional reputation.
with a rare autoimmune disease. Finkel’s book about soldiers return- More often, she was amused at
After watching Ms. Kazan play ing from Iraq with post traumatic the reinventions. She recalls walking
her in a hospital bed with a respira- stress disorder. Mr. Schumann was into the film’s production office and
tor in her mouth, Ms. Gordon apol- a military adviser for the film, and seeing a giant board labeled Re-
ogized for the discomfort it caused has a cameo as a sergeant who becca with images connected to her
the actress. When Ms. Kazan said it takes the soldiers’ weapons as they character: photos of herself along-
was fine, Ms. Gordon realized, “Oh, are arriving home. side others she couldn’t identify,
right, you don’t have the connota- “I was really nervous about such as boy bands popular during
tions with this that I do.” what the movie world had to bring her teenage years. “There are mo-
Some real-life people see their to this story,” Mr. Schumann says. ments in creepy movies where
fictional selves serving a bigger Being involved reassured him. He somebody’s been stalking somebody,
purpose. Adam Schumann is played views the screen Adam as “a ver- and then they go to the apartment
and see the wall is covered with
some kind of crazy collage. In some
ways it was like that,” she says.
In “Stronger,” due out Sept. 22,
Jake Gyllenhaal plays Jeff Bau-
man, who lost his legs as a result
of the Boston Marathon bombing.
The first time Mr. Bauman saw
Mr. Gyllenhaal in costume was
when he reenacted a scene not
long after the bombing: Mr. Bau-
man was wheeled onto the ice at
a Boston Bruins game, cheered by
the crowd. Mr. Bauman was on
set with Mr. Gyllenhaal, walking
on prosthetics. “I was pushing
him around in the wheelchair,
joking,” Mr. Bauman says about
the actor. “That was when I real-
ized how freaky it was to see him.
I noticed how good he was at por-
traying me.”
Some details are tidied up for
the movies. Mr. Bauman and his
wife, played by Tatiana Maslany,
announced earlier this year that
they were divorcing. Mr. Schumann
and his wife, played by Hayley Ben-
nett, divorced years ago. The mov-
ies don’t mention either split.
More profoundly, the films
sometimes offer a reality check
even to the people who inspired
them. Looking at himself on
screen, Mr. Bauman thought, “I’m
a real piece of work. I was drink-
ing a lot and partying.” A year ago,
long before seeing the film, he
stopped drinking and returned to
college. “The movie, it showed me
how far I’ve come in the last year.”

BONDS: ON RELATIONSHIPS | By Elizabeth Bernstein

FIND COMPASSION FOR

DIFFICULT PEOPLE
IT TAKES COMPASSION to deal with the
difficult people in your life.
New research suggests the answer to
avoiding the anxiety, high blood pressure and
disappointment of interacting with a person
that rubs you the wrong way lies in prepara-
tion. You can adjust your thinking about the
person before an encounter and learn to feel
compassion for him or her.
Researchers say compassion has four com-
ponents: You recognize another person’s suf-
fering, are emotionally moved by it, wish the
other person did not suffer and feel motivated
to help relieve the suffering. Whether you ac-
tually help or not is up to you. It is enough to
be willing to do so, the researchers say.
The new study, conducted by researchers at
the University of California, Berkeley, Stan-
ford University and the University of Califor-
nia, Davis and published online last month in
GREG CLARKE
week course that teaches people how to be-
come more compassionate. Researchers tracked
51 adults in the course through an iPhone app
that prompted them to rate their levels of four
different emotional states—anxiety, calm, fa-
tigue and alertness—twice a day. Participants
were also asked if they felt they could success-
fully regulate these emotions and how they
would do that. (Did they try to reduce the emo-
tion, maintain it, increase it or ignore it?) They
answered weekly surveys as well.
Over the time period of the class, people
were able to regulate and improve negative
states, such as anxiety and stress, and increase
positive states, such as calm, by cultivating
compassion, both for themselves and others.
Anyone can take Stanford’s CCT course,
which was created in 2009 by Thupten Jinpa,
the Dalai Lama’s chief English translator, and
a group of neuroscientists, psychologists and

the journal “Mindfulness,” looked at the effi- therapists and aims to teach people compas-
cacy of Stanford’s Compassion Cultivation sion toward all, including the difficult people
Training Program (CCT), which is an eight- Please see BONDS page A11
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
A10 | Tuesday, August 1, 2017 THE WALL STREET JOURNAL.

LIFE & ARTS

A NEW STUDY on sta- diology has an app to
tins—widely used medi- help clinicians rate the
cines that lower choles- likelihood that a muscu-
terol levels—highlights loskeletal issue is being
the dangerous outcomes caused from a statin, he
that occur when patients said. For example, if the
stop taking them due to pain is happening on just
adverse side effects. one side of the body it is
One in five patients less likely to be caused
taking a statin reports a by a statin. Pain in cen-
side effect, mainly mus- tral, proximal muscles
cle aches, according to like the shoulder and
the study. About one- thighs are more likely to
third of those patients be caused by a statin.
stop taking statins com- The two other risks of-
pletely, leaving them 13% ten linked to statins are
more likely to die or an increased risk for dia-
have a heart attack or betes and cognitive prob-
stroke over the next four lems. Dr. Natarajan said
years than those who there likely is a “very
continued to take statins. modest” increased risk of
The study was published developing diabetes but
in the Annals of Internal the benefits usually out-
Medicine last week. weigh that risk. The data
Since the discovery associating statins with
and usage of statins be- cognitive problems is
gan about 30 years ago, very limited, he said.
doctors have touted them Steven Nissen, chair-
as a safe, inexpensive man of the department
method for lowering bad, of cardiovascular medi-
or LDL, cholesterol levels cine at Cleveland Clinic
for the prevention of car- and author of an accom-
diovascular disease, the panying editorial, said
leading cause of death. numerous websites and
Experts say 56 million blogs have made unscien-
people in the U.S. should tific claims about statins,
be taking statins, such as which are damaging the
atorvastatin (brand name reputation of a critically
Lipitor) and rosuvastatin important medicine. “The
(brand name Crestor). vast majority of people
But only about half actu- do very well on statins,”
ally take the inexpensive, he said.
generic drugs. Previous In a study published in
studies have found that JAMA last year he and
anywhere from 25% to co-researchers random-
75% patients stop taking ized 511 patients who had
statins, usually due to reported an intolerance
JON KRAUSE

side effects. Doctors are to two or more statins to

increasingly worried either a statin or pla-
about the discontinua- cebo. After 10 weeks the
tion of the medicines due groups swapped pills.
to perceived side effects which YOUR HEALTH | By Sumathi Reddy They found that 26.5% of pa-

The Risks of
may be caused by something else tients reported muscular aches
or due to the nocebo effect, while taking the placebo but not
which is the negative expectation while taking the statin, while
of a drug. 42.6% had symptoms while taking
A recent paper published in the statin but not on the placebo.
the journal the Lancet compared The problem, he said, is there

Stopping Statins
the rates of muscular side effects no objective test. Muscle enzyme
in patients getting statins to levels can be measured, but they
those taking a placebo. They re- usually only show up abnormal in
peated the analysis with patients extreme cases of muscle break-
knowingly taking statins in a sec- down.
ond leg of the trial and found lit- To be sure, there are patients
tle difference in the rate of side for which muscular aches are de-
effects. The research was funded bilitating and real.
by Pfizer Inc., Servier Research William O’Neill, medical direc-
Gruop and Leo Laboratories. One in five patients taking the cholesterol drugs report muscle aches, new tor of the Center for Structural
Pfizer makes the statin Lipitor. Heart Disease at Detroit’s Henry
“This kind of analysis supports research shows; doctors warn the dangers of stopping usage can be dire Ford Hospital, tried a number of
the idea that statin intolerance is statins in different doses to treat
probably not as big of a problem Women’s Hospital. tinued to receive a statin pre- Medicine study, he said, brings his cardiovascular disease. He ex-
as we have thought it is,” said About 71% of the patients con- scription. “So, it looks like many “good awareness to the fact that perienced debilitating muscular
Ethan J. Weiss, a cardiologist and tinued to receive a statin pre- of those recurrent adverse reac- a lot of people who are on statins aches in his shoulders, upper
scientist at the Cardiovascular scription and about half of those tions were actually tolerable,” who report musculoskeletal is- thighs and upper back. “It was
Research Institute at the Uni- continued taking the same medi- said Dr. Turchin. sues can often continue on the just intolerable,” he said.
versity of California, San Fran- cation. About 29% of the patients Pradeep Natarajan, director of statin and do well or be re-chal- In his case, tests showed ele-
cisco. stopped taking statins. The re- preventive cardiology at Massa- lenged on another statin.” vated levels of muscle enzymes
For the Annals of Internal searchers compared the mortality, chusetts General Hospital in In many cases the muscular when he was on the statins. But
Medicine study, researchers ana- heart attack and stroke rates of Boston, said when deciding aches are mild, said Dr. Natara- such tests are only positive in ex-
lyzed data from two Boston Hos- both groups after about four whether to keep patients on sta- jan, though there is a subset of treme cases, he said.
pitals, focusing on 28,266 pa- years. tins, there needs to be a discus- patients who have more debilitat- Dr. O’Neill doesn’t believe the
tients who reported a side effect A secondary analysis of 7,600 sion weighing the benefits ing symptoms. They can often be problem of statin intolerance is
to a statin between 2000 and patients found that 26% of pa- against the risks. For those pa- helped by lowering their dose of overblown. “When a patient
2011, said Alexander Turchin, se- tients who had an adverse reac- tients who have previously had a the statin, he said. He noted that comes to an exam room the doc-
nior author on the study and an tion to the first statin they took, heart attack or who have cardio- patients with underactive thyroid tor doesn’t ask, ‘Are your mus-
associate professor of medicine at reported another adverse reac- vascular disease, the benefit will function are more likely to de- cles hurting?’ he said. “Patients
Harvard Medical School and en- tion to the same or a different almost always outweigh the risk. velop musculoskeletal problems. won’t really offer that unless it’s
docrinologist at Brigham and statin again. But about 80% con- The recent Annals of Internal The American College of Car- really severe.”

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.
60s d
Edmonton 50s 60s <0 1 2 3 4 5 6 7 8 9 10 11 12 Down 31 Compliments to
80s 60s 60s 0s 1 Tusked creature a big star
70s 13 14 15
Vancouver
V Calgary
C gary 32 Harder to find
70s 10s 2 Pakistani
70s Seattle Winnipeg
ip 16 17 18 tongue
20s 36 Email status
60s
Portland
Por
P d t
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l
Helena A
Augusta
100s Bismarckk Ottawa
ttawa 40s old maps do it!”
80s 80s 23 24 25 26
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Eugene 4 “Pipe down!”
Billings ppls./St.
ls //St P
Mpls./St. Pau
Paul Albany
ban
Albany
t
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50s 40 Biblical refuge
i
Boise Toronto
T 27 28 29 30 31 32
70s 60s 5 1997 Jim Carrey
Pierre ouxx Falls
Sioux k
Milwaukee t
Detroit Buffalo 70s rtford
Hartford 41 Toxin that may
100s comedy
Reno 90s Chicago
Ch
Chic g Cleve
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Cleveland New Yorkk
ew Y 70s 33 34 35 36 cause an
Salt Lake
L e City
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Philadelphia 80s 6 Canned snack anaphylactic
Sacramento Indianapolis Pittsburgh g 37 38 39 40 41 42
reaction
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p g
Charles
Chh l t
Charleston ashington
shington
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Washington D.C.
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n Francisco
an Topeka Kansas St.. Louis 43 44 45 46 47
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Lou ill 70s
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Wichita 90s l igh
Raleigh h 48 49 50 51 8 Royal flush card 46 “Looky here!”
70s C
Chh l tt
Charlotte
Los A
An l
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h ill
Santaa FFe
80s Memphis ph 90s 52 53 9 Upset winner 49 “Time in a Bottle”
70s 100s Ph Phoenix Albuquerque
q k ahoma
homa City
Oklahoma Atl t
Atlanta Warm Rain singer
San Diego
70s Little Rock C l b
Columbia 10 Lane in
T cson
Tucson i
Birminghamgh 54 55 56 57 58 59 60 61 62
FFt.. Worthth D ll
Dallas Jack
Jackson
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Metropolis 50 Game period
El Paso J k
Jacksonville T-storms
90s bil
Mobile EMILY
63 64 65 66 11 Lust and envy, 51 Farm female
A
Austin
50s Houstont Stationary Snow for two 54 Young chaps
ew Orleans
New 67 68 69
70s 90s d
Orlando 12 Best Picture
60s 80s 90s an Antonio
San
55 Triangle
Tampa
Ta p Showers Flurries 70 71 72
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70s hostage crisis
Ice 56 Look over
THE VILLAGE VOICE | By Zhouqin Burnikel 15 Zellweger of quickly
“Bridget Jones’s
U.S. Forecasts City
Today Tomorrow
Hi Lo W Hi Lo W City Hi
Today Tomorrow
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e.g. 26 Put away the
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35 Forum wardrobe texters
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painter quattro 65 “Spare me the
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80
81
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B U G G AM T I S N O T
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Minneapolis 86 66 pc 84 62 c Brussels 71 57 pc 74 63 pc Tokyo 85 73 t 81 73 r M E A D G O L D I E
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Hammer” snack like an H L A T E S T T R E N D S
New Orleans 90 74 pc 88 75 t Dubai 109 97 c 115 98 s Vancouver 80 62 s 85 67 s A D O R E S T O L E N C A R
New York City 90 73 s 88 73 t Dublin 66 53 t 69 55 r Warsaw 94 71 s 87 63 t N I N O S T E N R A I S E
Solve this puzzle online and discuss it at WSJ.com/Puzzles.
s

Oklahoma City 85 64 t 89 67 pc Edinburgh 64 48 t 65 53 r Zurich 88 65 pc 87 66 t D I E S O S S S P A S M

For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
THE WALL STREET JOURNAL.
A Chronicler of
Fractured Families
Pulitzer-Prize winning playwright and actor wrote of 20th-century America
BY ERICH SCHWARTZEL
SAM SHEPARD, the Pulitzer
Prize-winning playwright and actor
celebrated for chronicling America
in the 20th century, died Thursday
at his home in Kentucky, according
to a spokesman. He was 73 years
old and died from complications
related to amyotrophic lateral scle-
rosis, or Lou Gehrig’s disease.
Widely regarded as one of the
country’s greatest—and most pro-
lific—contemporary playwrights,
Mr. Shepard catapulted to the top
echelon of American letters with
“Buried Child,” his 1978 play about
a fractured Illinois family, which
won the Pulitzer Prize.
“Buried Child” and other plays,
including “Curse of the Starving
Class” and “True West,” examined
favorite themes of American play-
writing—fathers and sons, out-
casts, family obligations and the
nation itself. Mr. Shepard wrote
more than 40 plays in his career.
In a 2010 interview with the
Guardian, Mr. Shepard said his
troubled relationship with his al-
coholic father had influenced his
work, and many of his most cele-
brated plays concerned the break-
down of the nuclear family.
In the same interview, Mr. Shep-
ard said “there’s not a day goes by”
that he doesn’t think about death.
“We’re all haunted by it in one
way or another. And it’s the easi-
est thing in the world to push it
away, you just get a cappuccino.
But, yes, you’re haunted by it in a
different way [as you get older]. I
feel its presence. I feel it in sleep,
in dreams, in waking,” he said.
Born on Nov. 5, 1943, on Fort
Sheridan, Ill., Mr. Shepard grew up
on military bases before settling
with his family in the Los Angeles
suburb of Duarte, Calif. He dropped
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SAM SHEPARD | 1943 - 2017
Sam Shepard, here in 2011, died of complications from Lou Gehrig’s disease.
out of nearby Mt. San Antonio Col-
lege after one year to move to New
York and work in theater. His early
plays became a staple of the off
off-Broadway scene.
Mr. Shepard was a mainstay of
the 1970s New York hub of artists
that included singer Patti Smith
and photographer Robert Map-
plethorpe. Ms. Smith, in her 2010
memoir “Just Kids,” credits Mr.
Shepard with encouraging her to
trust her instincts and pursue mu-
sic, at one point buying her a used
black Gibson guitar for $200.
“With Sam I could be myself,”
wrote Ms. Smith. “He understood
more than anyone how it felt to be
trapped in one’s skin.”
The writer of many rambling
monologues was a man of few
LIFE & ARTS
BONDS
Continued from page A9
in their lives. It is taught through
the university’s medical school
and by more than 100 certified
teachers around the world.
The program, which includes
training on meditation and how to
adjust one’s thoughts, takes peo-
ple through a number of steps
that get more difficult as the pro-
gram goes on. Some of the steps
are about learning to focus, prac-
ticing compassion toward yourself
and a loved one, and developing
an appreciation for people outside
your inner circle, including diffi-
cult people. Exercises include re-
flecting on how the difficult per-
son in your life is someone’s son
or daughter, mother or father, sis-
ter or brother—just as you are—
and has hopes and dreams and
sorrows of his or her own.
The program does not advocate
that people forgive someone who
has been hurtful or continue a re-
lationship with that person.
Rather, it suggests we can feel
compassion for that person—rec-
ognize that he or she suffers and
wish for an end to that suffering—
as a way to help ourselves.
CHARLES SYKES/ASSOCIATED PRESS
“There are consequences to
ourselves in terms of negative
emotions when we are walking
around thinking bad thoughts
about someone or trying to avoid
him; this allows us to let them go,”
says Hooria Jazaieri, a researcher
at Berkeley’s Greater Good Science
Center, who teaches the compas-
sion class at Stanford and is the
lead author on the new study.
words himself. Mr. Shepard culti-
vated a frontiersman persona and Here are tips for using some
demeanor that became as well- of the Stanford program’s
known as the plays he wrote and teachings at home:
roles he played. Don’t suppress your thoughts. Re-
Mr. Shepard appeared in dozens search shows that suppression ac-
of films, including an Oscar-nomi- tivates the amygdala in your
nated turn in “The Right Stuff,” brain, where your body’s fight-or-
starring as military test pilot flight response resides. Suppress-
Chuck Yeager. His other credits in- ing will make you more anxious in
clude “Steel Magnolias,” “Black the long-run and will have harm-
Hawk Down” and the film adapta- ful effects on your physical health.
tion of “August: Osage County.” He It will also make you think more
most recently appeared on the about the person you might be
Netflix series “Bloodline.” trying to stop focusing on. In one
Mr. Shepard was in a relation- classic study in which participants
ship with actress Jessica Lange, were told not to think about a
whom he met filming “Frances,” white bear, the bear took over
from 1982 to 2009. He is survived their thoughts. If your difficult
by three children and two sisters, person’s name or a memory
according to the spokesman. arises, try to pay attention briefly
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Tuesday, August 1, 2017 | A11
then let your thoughts drift on to
something else.
GREG CLARKE
Acknowledge that you can be diffi-
cult, too. Ms. Jazaieri calls this the
“just like me” rule—remember
that just as this person is difficult
for you, you might be difficult for
someone else. “Maybe I have not
done as many bad things,” Ms.
Jazaieri says. “But I have said
things that aren’t true or have
hurt people and it is humbling to
remember that.”
Be curious. For a moment, imag-
ine what life might be like for
this other person. Remember
that he or she also has hopes
and dreams. He is a father or
son. She is a mother or daugh-
ter. By tapping into their strug-
gles, you will be able to let go
of some of your anxiety or an-
ger, and this will have positive
mental and physical effects for
you. Again, Ms. Jazaieri says
you don’t have to forgive the
person. The goal is to decrease
the emotional reactivity that
only harms you.
Tune into your body. Notice physio-
logical changes when you think
about or talk to your difficult per-
son—shallow breath, tight shoul-
ders, sweaty palms—and make ad-
justments. Take a deep breath and
relax your muscles. This will
change the way you react.
Practice, practice, practice. It is easy
to have good thoughts about a
stranger or acquaintance. But,
can you have them toward some-
one who pushes all your buttons?
If you can, you’ve reached a
higher level of emotional resil-
iency. And remember that this is
supposed to be hard. “Think of
yourself as an athlete,” says Ms.
Jazaieri. You want to practice, so
when it is game time and you are
around this person, you can call
upon these skills.”
Write to Elizabeth Bernstein at
elizabeth.bernstein@wsj.com or
follow her on Facebook, Twitter
or Instagram at EBernsteinWSJ.
 For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
A12 | Tuesday, August 1, 2017
No Position, No Problem in Today’s NBA
The Rockets signing P.J. Tucker—yes, P.J. Tucker— was the most revealing move of the league’s crazy summer
BY BEN COHEN
P.J. TUCKER came into the NBA more than
a decade ago and crashed out almost immedi-
ately. He was a 6-foot-6 player stuck between
positions—too small to be a forward but too
big to be a guard. The league had no place
for him. After playing only 83 minutes in the
NBA, he disappeared to another continent.
“P.J. was in, out, and to a large degree
forgotten about by a lot of people,” said An-
dre Buck, his agent.
Then something funny happened. The stra-
tegic revolution in basketball over the last
decade made teams reconsider their old pro-
totypes and resulted in what Boston Celtics
coach Brad Stevens recently called the NBA’s
three positions: ball-handler, wing and big.
There is a premium on players who can be all
three. Tucker is now one of those players.
That’s how someone who literally couldn’t
play in the league has become one of the
league’s most useful players. It’s also why the
Houston Rockets signed Tucker to a four-year,
$32 million deal in July—the longest and
richest contract of his career. In the first year
of his new deal, he will make about 43% more
than he was paid last year and nearly 1,000%
more than five years ago. There may be no
one in the NBA whose value has increased so
much in such a short amount of time.
Tucker wasn’t the most expensive Rock-
ets signing (James Harden) or the splashiest
addition to their roster (Chris Paul) and
may not even be their biggest small forward
when the season begins (Carmelo Anthony
remains a trade possibility).
But the pursuit of Tucker was the most
revealing move from the NBA’s most aggres-
sive team. It’s his incredibly unlikely career
that best explains the evolution of basket-
ball. He is a role player with a role that’s
more important than ever.
“It’s just how the game has changed,” said
the 32-year-old Tucker, “and I’ve been lucky
enough to play long enough to see it change.”
The only way he could benefit from the
game changing, though, was by changing his
own game.
Tucker was a second-round draft pick in
2006 and played in just 17 NBA games before
he spent the next five years bouncing around
leagues in Ukraine, Israel, Greece, Italy and
Germany. The odds of him being in the NBA
again were as long as his exile. In the decade
prior, according to Stats LLC, Anthony Parker
was the only player who had done what
Tucker was trying to do: begin his career in
the NBA, leave for more than five seasons
and then return on a prolonged deal.
But he realized something while maturing
overseas that eventually brought him back.
It’s a lesson that he imparts to younger
players who want to be like him. “Figure out
your niche,” he says, “and maximize it.”
It was obvious what Tucker’s niche had to
MORRY GASH/ASSOCIATED PRESS
MLB
BARTMAN GETS
A SERIES RING
BY QUINT FORGEY
STEVE BARTMAN’S personal curse has
officially been reversed.
The Cubs fan has long been derided for
touching a foul ball that might otherwise
have been caught, a move many fans believe
contributed to the team’s postseason loss to
the Florida Marlins in 2003—and extended
the team’s World Series drought.
The team on Monday awarded him a 2016
World Series ring. In response, Bartman is-
sued his first public statement in years, say-
ing he didn’t deserve the honor but hoped it
would put the incident to rest. “I am hope-
ful this ring gesture will be the start of an
important healing and reconciliation process
for all involved,” he said.
On Oct. 14, 2003, in the eighth inning of
Game 6 of the National League Championship
Series at Wrigley Field, Bartman stumbled
into the canon of sports infamy after deflect-
ing a potential catch by Cubs outfielder
Moises Alou.
The Marlins, who defeated the Cubs after
scoring eight runs in that inning, went on to
best the favored New York Yankees in the
World Series. The umpire said there was no
fan interference, but Bartman became the
victim of city-wide ridicule and death
threats for perpetuating the Cubs’ failure to
clinch a World Series title. “We hope this
provides closure on an unfortunate chapter
of the story that has perpetuated through-
out our quest to win a long-awaited World
Series,” the Cubs said in a release.
SPORTS
BASKETBALL
P.J. Tucker, left, recently signed a four-year,
$32 million deal with the Rockets..
be: playing defense and shooting 3-point-
ers—skills now coveted in today’s NBA.
Tucker is able to defend every player on the
court, point guard through center. The thing
that had been a disadvantage—that he was
an oversized guard but undersized for-
ward—had become his advantage. “He’s a
bear that’s as quick as a cat,” Buck said.
It was harder to imagine Tucker as an
outside shooter. He didn’t take any threes in
his first NBA stint. He attempted a total of
four in his three years of college.
But he knew he couldn’t play if he
couldn’t shoot. NBA teams didn’t need
Tucker to score. They needed him to create
space for the rest of the offense. He could
help a team simply by standing in the cor-
ner and taking selfies with fans as long as
he dragged a defender with him. By his last
season in Germany, Tucker was hitting 48%
of his threes. He was ready to come back to
the NBA at the exact moment the league
was ready to embrace him.
The best teams in the NBA understood
that front-court versatility was increasingly
valuable. And suddenly Tucker found him-
self in demand. He was no longer a tweener.
He was now positionless.
BIG MOVES FOR PITCHING
BY JARED DIAMOND
IN THE SPAN of about an hour Monday,
one of the most dominant baseball teams
ever constructed added a frontline pitcher,
while the sport’s marquee franchise loaded
up for the stretch run. One deal solidified
the Los Angeles Dodgers as undisputed
World Series favorites, while the other es-
tablished the New York Yankees as serious
title contenders.
In the final minutes before the trade
deadline, the Dodgers, currently on pace to
finish with the second-most wins in Na-
tional League history, swung a blockbuster.
They acquired pitcher Yu Darvish, an All-
Star in four of his five major-league seasons,
from the Texas Rangers for three prospects.
On the other side of the country, the New
York Yankees completed a deal with perhaps
even larger ramifications, reinforcing their
shaky rotation by landing right-hander
Sonny Gray from the Oakland Athletics. At
this time last year, the Yankees put the fin-
ishing touches on the franchise’s biggest
sell-off in decades, a stunning admission of
defeat that seemingly marked the start of a
period of rebuilding. Twelve months later,
an organization that considers anything less
than a championship a failure reasserted it-
self as the league’s premier buyers.
When the clock ticked past 4 p.m. EDT,
Gray to the Yankees looked like the most
significant move of the day, perhaps shifting
the balance of power in a tight American
League East. The Yankees entered Monday’s
action clinging to a half-game lead over the
Boston Red Sox in the division standings
and now pick up Gray, who owns a 3.42 ca-
reer ERA.
For the privilege, they parted with three
coveted minor-leaguers—outfielder Dustin
Fowler, starter James Kaprielian and infielder
Jorge Mateo—but kept the two most prized
assets in their system, Clint Frazier and Gley-
ber Torres. Gray, 27, won’t hit free agency un-
til after the 2019 season, giving the Yankees
a strong complement to Luis Severino not
just this year, but in the future as well.
Meanwhile, all this comes less than two
weeks after Yankees pulled off another
trade, bringing in infielder Todd Frazier and
“He turned himself into this player who’s
super useful to all these NBA teams,” said
Rockets general manager Daryl Morey.
The Phoenix Suns offered him a contract
in 2012 for the league minimum with no
guarantees he’d make the roster that year.
Tucker was there for the next five years. He
then re-signed with the Suns in 2014 to his
first multi-year, million-dollar deal.
He proved himself as a rugged defender
and reliable 3-point shooter, and he only left
Phoenix when the Toronto Raptors traded for
him this season for the same reason the Rock-
ets chased him in the off-season: Tucker’s
ability to guard multiple positions is essential
on defense, and the spacing he brings is nec-
essary in the modern NBA offense.
Tucker is dependable enough as a
shooter—he made 41% of his open threes
and 39% of his corner threes last year—that
other teams have to defend him all the way
out to the arc. But he only attempted 2.4
threes per game last year. He didn’t take
more than six in any game.
In his pitch meeting with the Rockets, the
pioneering coach Mike D’Antoni said he ex-
pects Tucker to average six per game. The
attention on Harden and Paul will make
MLB
Sonny Gray
was traded to
the Yankees.
relievers David Robertson and Tommy
Kahnle from the Chicago White Sox.
Naturally, the Red Sox didn’t sit idly Mon-
day. They shipped three prospects to the
New York Mets in exchange for Addison
Reed, who has 19 saves this season. He joins
Craig Kimbrel in the back of Boston’s bullpen,
potentially setting up an exciting race be-
tween two longtime rivals.
But just when it appeared that the Yan-
kees would dominate the national headlines,
the Dodgers swooped in at the buzzer. At
3:50 p.m., a picture was posted on Darvish’s
verified Twitter account, showing Darvish at
his Rangers locker with the caption
“10min!!” News of the trade trickled out
about 15 minutes after the deadline.
He cost the Dodgers three prospects—in-
fielders Willie Calhoun and Brendon Davis,
and pitcher A.J. Alexy—but like the Yankees,
they didn’t sacrifice the most heralded jew-
els in their system, Walker Buehler and Alex
Verdugo.
Arguably the biggest name available on
the market, the 30-year-old Darvish makes
the rich even richer. With the Dodgers al-
ready on pace to win 114 games, Darvish
THE WALL STREET JOURNAL.
RAJ MEHTA/REUTERS
room for the other Rockets, and it will be
easier for Tucker to find good looks in
Houston than good barbecue. “It’s crazy,
just crazy, to hear,” Tucker said. “I’ve never
been on a team like that.”
But they really signed him for his defense.
When free agency opened, the Rockets asked
themselves: What else do we need?
They had ball-handlers, wings and bigs,
but Houston wanted players who could be
all three. Only those types of players able to
guard multiple positions on the same pos-
session would help them beat the Cleveland
Cavaliers, San Antonio Spurs and especially
the Golden State Warriors.
“Probably one of the very few ways to
guard Golden State is to have guys who can
switch on different guys,” Morey said.
How teams spend during free agency is a
window into what they value. This summer,
when the salary cap was lower than antici-
pated, they were forced to be unexpectedly
frugal. They could only splurge on key players.
That’s what made this Houston move so
illuminating. They decided they needed
someone like P.J. Tucker.
“Someone with his skillset,” Morey said,
“is almost required.”
THEARON W. HENDERSON/GETTY IMAGES
could offer them a second ace alongside
Clayton Kershaw, the best pitcher on the
planet. Should everyone remain healthy, the
Dodgers will likely go into the playoffs with
a dynamic rotation of Kershaw, Darvish,
Alex Wood and Rich Hill. (Kershaw should
return from a back injury in September.)
Darvish has struggled of late, posting a
7.20 ERA in five starts in July, something
Darvish attributed in part to a mechanical
issue leading to him tipping his pitches.
When right, Darvish ranks among the best
pitchers in baseball.
Outside of Gray and Darvish, no other sig-
nificant players changed teams Monday, most
notably Detroit Tigers starter Justin Verlander
and Baltimore Orioles reliever Zach Britton. In-
stead, several contenders made some smaller
trades, mostly to improve their bullpens.
The NL East-leading Washington Nation-
als landed Minnesota Twins closer Brandon
Kintzler, an All-Star this season. The AL
Central-leading Cleveland Indians acquired
Joe Smith, while the Houston Astros, the
best team in the AL, got Francisco Liriano, a
starter with the Toronto Blue Jays who will
now shift to the bullpen.
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
THE WALL STREET JOURNAL.
Trump’s Unused Bully Pulpit
Not yet a
week after the
most extrava-
gant Republi-
can Party
botch since
the Bill Clin-
MAIN
STREET ton impeach-
ment, Beltway
By William
fingers are
McGurn
still pointing.
And why not?
The failure to make good on
seven years’ worth of Obama-
Care repeal promises has
many fathers.
Take your pick. Sen. John
McCain’s pique. The squishi-
ness of those such as Sen.
Rob Portman who voted for
repeal when it didn’t matter,
and then voted nay when it
did. Behind-the-scenes under-
mining by governors such as
Ohio’s John Kasich. A GOP
bereft of party discipline.
There is truth to all these.
Even so, perhaps the most
obvious reason goes almost
unmentioned: The Republican
bills were unpopular.
This does not mean they
were bad bills, notwithstand-
ing the many compromises
lawmakers included. It does
mean that their merits went
mostly unsold to the public.
This allowed Democrats and
their allies to paint the bills
as but the latest Republican
attempt to rob from the poor
($800 billion in Medicaid
cuts) to give to the rich
($600 billion in tax cuts).
Even more astounding is
that as this narrative took
hold the president of the
United States neglected the
How U.S. Allies Undermine NATO
By Orde F. Kittrie
T
he U.S. spends heavily to
defend Europe, yet most
North Atlantic Treaty
Organization members don’t
spend 2% of their GDP on de-
fense, as the alliance’s guide-
lines call for. Worse, many of
these free riders also punish
U.S. companies for manufac-
turing weapons used by the
Pentagon to defend NATO al-
lies and other countries. Spe-
cifically, several NATO member
governments have divested
from or even criminalized the
purchase of stock in U.S. de-
fense contractors.
Between 2005 and 2013
Norway’s government pension
fund divested from U.S. de-
fense contractors such as Boe-
ing, Honeywell, Lockheed
Martin and Northrop Grum-
man “because they are in-
volved in production of nu-
clear weapons.” The fund,
controlled by Norway’s Fi-
nance Ministry, is worth some
$900 billion. At the end of
2015, approximately $180 bil-
lion was invested in 2,099
American companies.
Norway, a NATO member,
divested even though these
companies produce nuclear
weapons only for the U.S. gov-
ernment, and NATO’s 2012 De-
terrence and Defence Posture
Review describes U.S. nuclear
weapons as “the supreme
guarantee” of members’ secu-
rity. The hypocrisy goes fur-
ther: In 2016 Norway autho-
rized its pension fund to invest
in Iranian government bonds—
even though Iran has spon-
sored terrorism for decades
Is Your Child Safe From Antivaccine Activists?
By Julie Gunlock
T
oday’s parents worry
constantly about the
kids: What are they do-
ing, seeing, saying, eating? Is
that shampoo safe? Are they
watching too much television?
Thanks to antivaccine cam-
paigners, add measles to the
list.
In 2000, doctors were cele-
brating that measles essentially
had been eradicated in the U.S.
Even people who could not
safely receive the vaccine, such
as newborns, were protected
by what’s known as “herd im-
munity.” When a large portion
of a population is immunized,
there are few potential carriers
to spread the disease, which
shields everyone.
But a study published last
week in JAMA Pediatrics
shows how quickly herd immu-
nity can break. The researchers
estimated that a 5% reduction
in measles vaccination in the
U.S. could triple the number of
cases annually among children
greatest bully pulpit of all:
the Oval Office.
Notwithstanding his flaws,
Donald Trump has proved
himself able to connect with
voters, especially those who
voted for Barack Obama, in a
way other Republicans have
not. But the Trump White
House has yet to recognize
the unique punch a formal,
televised address from be-
hind the desk of the Oval Of-
fice still carries, even in the
age of Twitter.
Ronald Reagan’s use of the
Oval to push his tax cuts
through in 1981 is a textbook
example. Yes, the Gipper
schmoozed those on the op-
posite side of the aisle. He
had to, given that Democrats
controlled the House. But as
likeable as he was, folks on
both sides of the political
aisle were skeptical about his
proposed tax cuts.
In a July 27 Oval Office
address, Reagan made his
pitch. In simple language, he
gently mocked the Demo-
cratic leadership claims that
their bill “gives a greater
break to the workers than
ours.” He said the whole con-
troversy came down to whose
money it was—the people
who earned it or the govern-
ment that wanted to spend it.
And his call for Americans to
“contact your senators and
congressmen” to urge them
to vote for his tax cuts
touched off what Speaker Tip
O’Neill described as a “tele-
phone blitz like this nation
has never seen.”
Though it’s now popular to
and is a patron of Bashar
Assad’s atrocities in Syria.
So far only Norway has di-
vested from companies for
producing nuclear weapons.
But the government pension
funds of Denmark, France and
the Netherlands have joined
Norway in divesting from
American companies that pro-
duce other weapons stocked by
the U.S. military. These coun-
tries have targeted General Dy-
namics, Raytheon and Textron
European countries
divest from American
defense firms that
help protect them.
for manufacturing cluster mu-
nitions and land mines, in
some cases after production
reportedly has stopped.
Six European countries—
NATO members Belgium, Italy,
Luxembourg, the Netherlands
and Spain, plus nonmember
Liechtenstein—make it illegal
for their nationals to invest in
companies that produce clus-
ter munitions or land mines. In
Switzerland, citizens can be
imprisoned for five years for
direct and indirect financing,
including stock purchases, of
companies that manufacture
nuclear weapons, cluster mu-
nitions or land mines.
While these weapons often
pose a threat to civilians even
after conflicts end, the U.S. gov-
ernment deems them necessary.
The Obama administration ac-
knowledged in 2014 that land
2 to 11. “The numbers would be
substantially higher,” they
write, “if unvaccinated infants,
adolescents, and adult popula-
tions were also considered.”
This is alarming when you
consider how many parents
are now skipping their chil-
dren’s vaccines. Between 2009
Measles, all but
eradicated by 2000,
threatens a comeback.
and 2013, nonmedical exemp-
tions for school immunizations
increased by 19%, according to
a 2014 study in the American
Journal of Public Health. The
exemption rate for kindergart-
ners in Oregon was 6.4%; in
Vermont, 5.7%; in Wisconsin,
5.4%.
Parents who cite religious,
philosophical or personal ob-
jections to vaccination are like
conscientious objectors in the
war on disease. But they are
OPINION
reminisce about the warm
cuddly Reagan who put parti-
sanship aside, that’s not the
way it was seen at the time.
The day after his speech, the
New York Times reported Rea-
gan had “engaged in a series
of partisan attacks on his op-
ponents on Capitol Hill.”
It worked: Two days later
the Democratic House ap-
proved the Reagan adminis-
tration’s tax cuts by a com-
fortable margin.
As Reagan proved,
there’s nothing as
powerful as an Oval
Office address.
What does this mean for
Mr. Trump? It’s probably too
late now for health care. But
it might have been a different
story if President Trump had
used a televised, White House
address to explain that the
Republican goal was a bill
that would help drive down
costs, lower insurance premi-
ums, and undo mandates forc-
ing Americans to buy prod-
ucts they don’t want.
Some suggest Mr. Trump
does not have the mastery of
detail to pull it off. But a
president does not need to be
a policy wonk. One big thing
he can do is simply to push
back on the falsehoods.
Imagine, for example, if
Mr. Trump had pointed out
that the accusation Republi-
cans were cutting Medicaid
mines are needed to protect
South Korea. The State Depart-
ment has long said the elimina-
tion of cluster munitions “from
U.S. stockpiles would put the
lives of its soldiers and those of
its coalition partners at risk.”
Many NATO governments
joined the 2008 international
treaty to ban cluster munitions
and the 1997 agreement to for-
bid land mines. Boycotts tar-
geting companies producing
these weapons derive from ex-
pansive interpretations of par-
ticular provisions in these ac-
cords. Both treaties say that
“never under any circum-
stances” will a country “assist,
encourage, or induce” anyone
to engage in activities such as
the development or production
of the banned weapons.
The treaty banning nuclear
weapons, which was adopted by
the U.N. General Assembly on
July 7, includes similar lan-
guage. Many of the 122 govern-
ments that voted for the nu-
clear treaty will likely divest
from and criminalize purchase
of stock in nuclear-weapons
manufacturers. No NATO gov-
ernment supported the nuclear
ban treaty. Yet Norway’s divest-
ment from stock in nuclear-
weapons manufacturers shows
the fervor generated by move-
ments against disfavored weap-
ons can spur such boycotts even
if a country ultimately doesn’t
support the treaty.
The danger of European
economic warfare against Is-
rael—including the Boycott,
Divestment, and Sanctions
movement—deservedly has re-
ceived considerable attention.
In contrast, European economic
putting their friends and
neighbors at risk because they
have fallen for antivaccine pro-
paganda.
Andrew Wakefield, a British
doctor whose discredited
claims originally fueled the
antivaccine movement, was
eventually stripped of his
medical license. But liberal ce-
lebrities like Bill Maher, Jim
Carrey, Robert De Niro and
Alicia Silverstone took up the
cause. So did environmental
activists like Robert F. Ken-
nedy Jr. and progressive pub-
lications like Mother Jones
and Salon.
The Centers for Disease
Control and Prevention states
unequivocally that “there is no
link between vaccines and au-
tism,” rejecting one of the
more popular claims. Yet a
handful of activists have man-
aged to plant seeds of doubt in
the public mind. In 2014 the
CDC reported 667 cases of
measles in 27 states—a record
since 2000. Worse could be on
the way.
was classic Swampspeak: In
fact, spending would still go
up every year, albeit at a
slower rate. For good mea-
sure, he might have con-
trasted the Republican faith
in the wisdom of the Ameri-
can people with the admis-
sion by a chief architect of
ObamaCare that it owed its
passage to a “lack of trans-
parency” and “the stupidity
of the American voter.”
In fairness, Mr. Trump did
make calls, bring in senators
and speak at his rallies. Even
so, nothing quite matches the
prestige of an address from
his desk, where the president
speaks directly to the entire
American people. Unlike his
rallies, generally limited to
his most ardent supporters,
even many of those who de-
test the president would tune
in for a prime-time, Oval Of-
fice address.
This is not about blaming
Mr. Trump for the failure to
repeal ObamaCare. It is about
pointing him to a huge presi-
dential asset that went un-
used in a key contest involv-
ing Republican credibility.
Democrats are now gearing
up to run the same class nar-
rative against the Republicans
on tax reform they did on
ObamaCare. If the president
wishes to avoid another em-
barrassment, he might put
down his smartphone for a
moment and start thinking of
how to use the Oval Office to
ensure the coming debate on
taxes is argued on his terms
and not the opposition’s.
Write to mcgurn@wsj.com.
warfare against U.S. companies
for implementing U.S. govern-
ment policy has avoided the
spotlight and elicited virtually
no response from Washington.
This must change. The targeted
U.S. firms together employ hun-
dreds of thousands of American
workers. For allied govern-
ments to penalize such compa-
nies for filling U.S. government
orders is unacceptable. It could
even increase costs to the U.S.
taxpayer, who ultimately would
pay extra legal or financing
costs associated with producing
these weapons.
If left unchecked, this prob-
lem will grow. Norway’s pen-
sion fund has divested from
Wal-Mart, America’s largest
employer, for “serious viola-
tions of human rights,” accord-
ing to the fund’s website. The
fund has also divested from
two U.K. companies for pro-
ducing Britain’s nuclear arse-
nal and one Israeli company
for involvement with Israel’s
antiterrorism fence.
Congress and the executive
branch should spotlight, and
vigorously oppose, ally and
partner government boycotts
that target the defense indus-
trial base of the U.S. and key al-
lies such as Israel and the U.K.
Governments must know that
such boycotts, if continued, will
subject them and their compa-
nies to commensurate penal-
ties.
Mr. Kittrie, a law professor
at Arizona State University and
senior fellow at the Foundation
for Defense of Democracies, is
author of “Lawfare: Law as a
Weapon of War” (Oxford, 2016).
Why is measles a particular
danger? First, it can linger for
up to two hours in the airspace
where an infected person
coughed or sneezed. Contem-
plate that the next time you’re
waiting in line at the Depart-
ment of Motor Vehicles. Sec-
ond, a person with measles is
infectious for days before
showing any signs of the dis-
ease, and the early symptoms
can easily be dismissed as
nothing more than a cold. Mea-
sles can lead to pneumonia, or
to encephalitis, which can
cause blindness and permanent
brain damage.
There is no reason for par-
ents to view vaccines with
trepidation. What they—and
all Americans—should worry
about instead is the antivac-
cine conspiracy theories that
put everyone in danger.
Ms. Gunlock is a senior fel-
low at the Independent
Women’s Forum and leads the
organization’s Culture of
Alarmism Project.
Tuesday, August 1, 2017 | A13
BOOKSHELF | By Philip Delves Broughton
Excess
At the Top
The CEO Pay Machine
By Steven Clifford
(Blue Rider, 277 pages, $23)
I
n 1978 the average chief executive at a large company
was paid 26 times more than the average worker. By
2014, depending on your method of calculation, he was
paid 300 to 700 times more. It has become standard for a
CEO to make more than $10 million a year, and a few make
more than $100 million. These aren’t founders or major
shareholders but hired guns, managers playing with house
money.
It is not like this everywhere. In the U.K., the fifth larg-
est economy in the world, the pay ratio of CEO to average
worker is 84 to 1. In Japan, the third largest, it’s 16 to 1.
So what happened in America that so much is now
lavished on the executive class? And does it matter? To the
second question Steven Clifford, a former chief executive at
King Broadcasting and now the author of “The CEO Pay
Machine,” responds with an emphatic “yes.” The outsize
income, he thinks, feeds
inequality and mistrust in
our democracy. In response
to the first question he
argues that a system of
compensation has emerged
over the past four decades
that rewards mediocre
executives by stiffing
shareholders, employees and
society at large.
The CEO “pay machine”
works like this: When a chief
executive is hired, a company
will also hire one of a handful of
compensation consultants to establish
a benchmark for his pay. The consultant
will look at a bunch of companies in different
industries and then propose that the CEO be paid at the
75th percentile. (No company wants to think it is paying its
CEO at the 25th percentile.) The consultant is out to please
the future CEO, since the real money will come if he is
hired to design the company’s pension or health-care plans.
Charlie Munger, Warren Buffett’s business partner, once
said that he would “rather throw a viper down my shirt-
front than hire a compensation consultant.”
But salary is just the beginning. Next come the short- and
long-term incentive plans. Short-term plans contain bonuses
for meeting annual targets or for simply accomplishing the
tasks one expects of a senior manager. In 2014 Les Moonves,
the CEO of CBS, received a cash bonus of $25 million.
Roughly half of that was reportedly paid to recognize Mr.
Moonves’s “leadership and direction in the creation of pre-
mium content.” In other words, doing his job.
The marvelous thing about bonuses at this level, Mr.
Clifford notes, is that they aren’t binary. If you fail to meet
your targets, you don’t lose your bonus; you just get less of
it. If you have a $1 million bonus target, chances are that
the board will shave maybe 10% off if you underperform.
And $900,000 for failure isn’t bad. Of course, there are also
long-term incentives: the stock options and the restricted
stock that vests over time.
Many companies are led by chief executives
whose contribution to profit may be minuscule
but whose compensation is astronomical.
Mr. Clifford blames the emergence of the CEO pay
machine on three people: Michael Jensen, Milton Rock and
Bill Clinton. Mr. Jensen is the Harvard Business School
professor who argued that the single best measure for
managerial performance is a company’s stock price. He
wrote that the CEO’s main job is to maximize shareholder
value, and the way to ensure that the CEO does that is to
give him shares so he acts more like a “value-maximizing
entrepreneur” than a bureaucrat. It turns out, though,
that stock awards and bonuses often don’t align the
interests of managers and shareholders; they encourage
short-term boosts to earnings rather than investing for
long-term growth.
Milton Rock was the godfather of compensation
consultants. His firm, the Hay Group, pioneered the practice
of comparing executive pay between companies. This
method created what Mr. Clifford says is a bogus market
for managerial talent. Few executives can transfer their
talents from one company to another, let alone from one
industry to another, and yet they are paid as if they are
basketball free agents.
In 1993, President Clinton and a Democratic Congress
pushed through a bill intended to cap executive pay and
link it to performance. Salary in excess of $1 million would
no longer be tax deductible for the company, but there
would be no limit on the deductibility of performance-
linked pay. Not surprisingly, the performance-linked
component exploded, with the approval of corporate boards
often cozily linked to chief executives.
“Apart from aliens from the galaxy Zork-El, corporate
directors are the only sentient group who think that CEO
pay levels today are justified,” Mr. Clifford writes. Board
members—and no doubt well-heeled CEOs—suffer from
several delusions, in Mr. Clifford’s view. Among them,
that the CEO is as important to the performance of a
company as a quarterback is to a football team. Not true,
he says. Many are no more significant than the water boy.
Another delusion is that bonuses motivate. In fact, other
measures of accomplishment and status matter more for
executives already swimming in money. Then there is the
question of whether you can really measure executive
performance. In Mr. Clifford’s view, there are far too
many variables in a vast organization to gauge the effect
of one leader’s pixie dust.
Mr. Clifford targets specific CEOs whose middling
performance and exorbitant pay merit ridicule. It would
have been interesting to read him on CEOs like Bob Iger of
Disney or Jamie Dimon of JPMorgan Chase who have done
hard jobs well over many years. Not all executive talent is
as easily replicable and overpaid as he believes.
Mr. Clifford’s answer to the CEO pay machine, though, is
a compelling one: a simple combination of salary and
restricted stock. “No pay for specific performance, no
short-term bonus, no stock options.” If company boards had
the guts to implement his idea, it would bring much needed
clarity and integrity to an invidious system.
Mr. Delves Broughton is the author of, among other
books, “The Art of the Sale: Learning From the Masters
About the Business of Life.”
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A14 | Tuesday, August 1, 2017 THE WALL STREET JOURNAL.

OPINION
REVIEW & OUTLOOK LETTERS TO THE EDITOR

Government Opioid Abuse Trump’s Personality, a GOP Liability in 2020?

O
pioid abuse ranks among the nation’s times the number of opioid addicts. The vast ma- Peggy Noonan’s assessment of order mandating that the current
biggest public health challenges with jority of patients who take prescription painkill- President Trump’s personal liabilities health-care system and any further
is on target (“Trump, ObamaCare and health-care reform apply to all mem-
drug overdoses now the leading cause ers don’t get hooked on heroin. A New England
the Art of the Fail,” Declarations, bers of Congress. Why is the public
of death among Americans un- Journal of Medicine study last July 22). This is the dilemma the GOP not being informed that Congress has
der the age of 50. While the State AGs target year found that fewer than 4% may face in 2020: Even if Mr. Trump their own health-care program that is
causes are complex and multi- painkiller makers of people who had used pre- gets the country and the economy much better than ObamaCare? The
ple, politicians and their trial scribed painkillers for non- pointed in the right direction, swing public should demand that laws
lawyer friends aren’t letting to pad their budgets. medical reasons used heroin voters across the political spectrum passed by Congress that apply to the
the crisis go to waste. sometime in the following five may not want to go through another public also apply to congressional
More than 20 state and local years. term of such high-strung personal members.
governments including Ohio, Missouri, Missis- Painkillers can encourage dependency, and phy- drama. HENRY A. FLEISHMAN
sippi and nine counties in New York have sued sicians need to carefully monitor patients. But the RICHARD REAY Charlotte, N.C.
prescription opioid manufacturers for fraud and bigger problem, as the Ohio lawsuit evinces, is Riverdale, N.Y.
Ms. Noonan is off the mark. The
deceptive marketing, among other supposed of- fraud in the delivery system. “Despite strict federal
Ms. Noonan is right on. Mr. Trump political “leadership” may be
fenses. Ohio GOP Attorney General Mike DeWine’s regulation of prescription drugs, local law enforce- should reach across party lines and “rocked,” but Mr. Trump is not. Not
lawsuit against Purdue, Janssen, Teva, Endo and ment agencies are faced with increasing diversion demand Sens. Joe Manchin and Mitch knowing what he will do next is Mr.
Allergan has set a template for other states that from legitimate sources for illicit purposes, doctor McConnell form a bipartisan commit- Trump’s strategy and this can be a
are coordinating litigation. shopping, forged prescriptions, falsified pharmacy tee to work on fixing ObamaCare, not motivator for obstructionists to actu-
Governments are farming out the legal work records, and employees who steal from their place repealing it. ally do something.
to trial attorneys who front the bills in return for of employment,” the lawsuit notes. The best way to get that done is to MARY ZEMYAN POLITO
a share—typically 20%—of the reward. States In 2015, 1,663,614 opioid pills—21.3 per cap- get Mr. Trump to issue a presidential Johnstown, Pa.
used this contingency-fee model to squeeze $206 ita—were dispensed in Ross County, Ohio. A frac-
billion from tobacco companies in the 1990s, and tion of physicians account for a disproportionate
the ringleader of that effort, former Mississippi share of opioid prescriptions, and addicts forum Those Who Wish to Die Should Have the Right
Attorney General Mike Moore, is assisting with shop like trial attorneys. Prescription opioids of- In late 2016 my grandfather was with life in the Netherlands to debate
the opioid raids. ten get diverted to the black market, and drug diagnosed with terminal cancer (“In the situation in an open and honest
The lawsuits rely on the same sources—and dealers on the street often lace painkillers with the Netherlands, the Doctor Will Kill way.
suffer from the same flaws. Namely, they don’t illicitly manufactured opioids to create more po- You Now,” op-ed by Kees van der SANDER WITTEVEEN
specify instances in which doctors relied on al- tent, and lethal, drugs. Staaij, July 21). From when he was Netherlands
leged misrepresentations to improperly pre- Nearly all states operate databases that track first diagnosed he knew that he
scribe an opioid medication that led to a particu- physicians, patients and prescriptions, but the wanted to be euthanized once his A week after having the cancerous
lar injury. A federal judge last year dismissed rub is using the metadata to track criminal activ- quality of life had been depleted to a part of my right leg removed, I found
most of Chicago’s claims because the city “failed ity and curb abuse. Some states such as Kentucky certain point. In May 2017, completely myself pondering my situation. I had
to identify the prescribers who were exposed to and Tennessee that have required doctors to con- in his own control, he chose to end been given a potential death sen-
his life. It happened in his living tence, was in unbearable pain and I
defendants’ [alleged] misrepresentations as the sult databases prior to prescribing opioids have
room with the doctor, his assistant, was bald.
same prescribers who prescribed defendants’ seen a decline in doctor shopping. my grandmother, my father, his two Alone at the time, I remember
drugs and thereby caused the City to incur Plaintiffs are requesting billions in damages brothers and me present. It was the looking up at the ceiling and being
costs.” to cover the social and economic costs of opioid most beautiful moment I have ever struck with a sudden and clear un-
Plaintiffs contend that pharmaceutical com- addiction, and Senators demanded upward of experienced because my grandfather derstanding of why people would
panies fraudulently market opioids for chronic $45 billion for treatment in return for their votes died as I have always seen him. want to move to the Netherlands and
pain and that long-term use encourages depen- to repeal ObamaCare. Yet the ObamaCare Medic- Living in a country that allowed die. In my moment of profound in-
dency. Yet the Food and Drug Administration ap- aid expansion may have inadvertently fueled the my grandfather to go the way he sight, for reasons of God and family,
proves the labeling and warnings for prescrip- opioid epidemic by making painkillers more ac- wanted gives me true pride. If I am suicide was not actually on the
tion opioids. Lawyers and politicians are trying cessible. A recent study estimated that a quarter diagnosed with cancer, I will have the agenda. My life was not over.
to substitute their medical judgment for that of of Medicaid beneficiaries were prescribed opi- same option my grandfather did. We JONATHAN S LEIBOWITZ
owe it to the people who are done Brooklyn, N.Y.
regulators and physicians. oids in 2015.
In 2015 a California state judge stayed Orange Politicians no doubt are hoping to raise
County’s lawsuit after finding it “could lead to in- money from the trial bar off the opioid lawsuits.
consistencies with the FDA’s findings, inconsis- Mr. DeWine plans to run for Governor next year, The Arbitration Rule Saves Eliminate the Earnings
tencies among the States, a lack of uniformity, and the Democratic nominee will likely be his
and a potential chilling effect on the prescription predecessor Richard Cordray, who has spent the Consumers From Big Banks Cap for Social Security Tax
of these drugs for those who need them most.” last five years as a frontman for plaintiff attor- Don’t be fooled by the carefully In “How to Make the Tax System
Meanwhile, state plaintiffs continue to reimburse neys while leading the Consumer Financial Pro- selected statistics in “Repealing Fairer and Save Social Security”
opioid prescriptions, which makes them co-con- tection Bureau. the Arbitration Rule” (Review & (op-ed, July 20), it is hard to under-
spirators with Big Pharma. State and local governments are also Outlook, July 26). Ohioans who stand how Martin Feldstein views
have been ripped off by big banks his proposal to tax employee health
Ohio claims that prescription opioids are a scrounging around to backfill their budgets,
and payday lenders don’t see the benefits as fair even though health-
gateway to street drugs and that their deceptive which have been strained by labor and pension arbitration rule through a partisan insurance costs are skyrocketing
marketing has “resulted in the explosion in her- costs. It may be easier to hit up Big Pharma than lens. One cheated customer alone and he acknowledges that it would
oin use.” Yet 2.3 million patients in Ohio were taxpayers, but mugging businesses won’t cure hardly stands a chance against the “make such benefits more expensive
prescribed painkillers last year—more than 10 politicians of their spending addictions. army of lawyers employed by to employees, accelerating the trend
banks. But when millions of cus- toward higher deductibles and co
tomers come together, it’s a much payments.”
Kelly Sends a Message fairer fight. After two congressio-
nal hearings and many bad head-
This tax is highly regressive as it
will adversely impact lower and mid-

T
he big questions about new White last week he gave a profanity-laced interview lines, Wells Fargo may be cutting a dle-income employees who rely on
House chief of staff John Kelly are to a writer for The New Yorker denouncing Mr. deal. But it’s still using forced-ar- these benefits to offset the ever-in-
bitration clauses to prevent cus- creasing costs of health insurance.
whether he can impose discipline on a Priebus and White House aide Stephen Bannon.
tomers from seeking justice on Surely, there are more equitable taxes
chaotic staff, and whether By firing Mr. Scaramucci, their own terms. that could be enacted to solve this
President Trump will listen to The new White House Mr. Kelly in a stroke demon- Wells Fargo is not alone. Santan- problem.
him. After one day on the job, chief of staff gives strated that he is already in der used a forced-arbitration clause EDWARD BASILE
Mr. Kelly appears to be 2-0. charge and has the Presi- to block an Army National Guard Washington, D.C.
Mr. Trump swore in his the Mooch the boot. dent’s support, that aides who sergeant from seeking justice after
new staff chief Monday morn- want to see Mr. Trump need the bank illegally repossessed his Mr. Feldstein did not mention a
ing and within hours Anthony to work through Mr. Kelly, car while he was serving our coun- third benefit of taxing employer-
Scaramucci was out as White House communi- and that no one should trash their colleagues try overseas. It’s pretty simple: paid, health-insurance premiums:
cations director. Sourrces said Mr. Kelly had in public or freelance without permission from Gutting the Consumer Financial With the tax preference removed,
requested that Mr. Scaramucci depart and that the top. Not a bad first day. Protection Bureau’s rule means employers, especially small busi-
banks get away with cheating their nesses, are no longer obliged to re-
Mr. Trump assented. With Mr. Trump, it’s possible—perhaps
customers. search, negotiate, implement, ex-
The Mooch’s dismissal is certainly a tone likely—that this will be a fleeting moment of or- SEN. SHERROD BROWN plain, administer, defend and
setter, and not merely because he was on the ganizational discipline. The President has (D., OHIO) troubleshoot their one-size-fits-all
job for only 10 days. A New York brawler who shown in the past that he can listen to advice Cleveland health-insurance policies. The em-
made a fortune in finance, Mr. Scaramucci had for a few hours, sometimes even a few days, but ployer tax preference is a productiv-
advertised himself as someone who under- inevitably he feels too confined by political nor- ity-killing anachronism that perverts
stood Mr. Trump’s authentic political voice and malcy and breaks free with a Twitter barrage CEOs Should Be Paid Based the health-insurance market, as if it
could fire anyone he wanted to. He had bragged or interview tirade. Or maybe, as a former four- were not perverted enough already.
that he reported directly to the President, not star general, Mr. Kelly is the rare person outside
On the Value They Create STUART GARNER
to previous chief of staff Reince Priebus. And his family whom Mr. Trump will heed. While a CEO’s compensation pack- Georgetown, Texas
age is a confluence of many factors,
one of the most important should be The solution to the Social Security

Venezuela’s Mocked Election long-term value creation for share-

holders. Critics of SL Green Realty
deficit is to eliminate the cap on
earnings taxed. Currently Donald

V
Corp.’s compensation practices vastly Trump, Warren Buffett and Bill Gates
enezuela’s Nicolás Maduro went ahead has in the United States. Treasury Secretary miss the mark, focusing instead on pay Social Security tax only on their
Sunday with elections for a new as- Steven Mnuchin called the election “illegiti- short-term stock performance (“At SL first $127,000. How is this fair?
sembly, claiming that eight million mate” and Mr. Maduro a “dictator who disre- Green, a Rebuke Over Pay,” Business DAVID COOK
people voted to replace the gards the will of the Venezue- & Finance, July 26). Oxnard, Calif.
sitting legislature. Let it be How Trump and the lan people.” A significant portion of my net
noted that if Mr. Maduro But the statement made worth is in SL Green stock. Therefore, If Social Security payments to
could legitimately turn out
OAS can respond to no mention of sanctioning oil I am very focused on Chief Executive high-income individuals were also
Maduro’s power grab. exports, which are crucial to Marc Holliday’s long-term record. subject to payroll taxes, more funds
eight million voters like this,
Since he was named CEO in 2004, could flow into the Social Security
he would not have had to pre- the regime’s survival. Vene- our total return to shareholders was system.
cipitate the current crisis by zuela’s access to hard cur- over 266% through the end of 2016. DOV FRISHBERG
blocking a recall referendum on his regime rency depends largely on its export of heavy SL Green’s general and administrative Brooklyn, N.Y.
last year. The questions now are what comes crude to the U.S. Gulf Coast, where refineries expenses continue to be lower than
next and what should the U.S. do? are specially fitted to handle it. A U.S. ban the office-REIT-sector average, con-
The 545 newly elected representatives are would hurt the Maduro government because sistent with the company’s philoso- Pepper ...
supposed to arrive in Caracas and take their it would force the state-owned oil monopoly, phy to deliver bottom-line efficiency
seats within 72 hours of the election. This PdVSA, to ship to faraway markets that could to shareholders.
And Salt
new constituent assembly will have absolute handle their heavy crude, such as China. The In 2016 SL Green had an occupancy THE WALL STREET JOURNAL

sovereignty. They will rewrite the Venezue- higher shipping costs and the dislocation rate in its Manhattan same-store
portfolio of approximately 97% and
lan constitution and have the power to make would have a material impact on an already
leased over 3.2 million square feet of
law. They will surely fire the legitimate na- shaky PdVSA. Manhattan office space. The com-
tional assembly, which is controlled by the Mr. Trump could also block PdVSA from us- pany’s corporate credit rating was
opposition. Unclear is whether the current ing the U.S. financial system and ban U.S. com- upgraded to full investment grade. In
assembly will leave their seats by them- panies from doing business in Venezuela. Em- short a stand-out year compared to
selves or force the Maduro national guard bargoes are famously porous, and no one its peers.
to remove them. expects this one to be airtight. But Venezuela’s STEPHEN L. GREEN
Mr. Maduro is already threatening to strip fiscal dependence on heavy crude exports to Chairman, SL Green
the current legislators of legal immunity be- the U.S. makes this situation especially suited New York
fore their powers are abrogated. The new as- to American action.
sembly is also expected to fire Attorney Gen- Some will say that oil sanctions can only Letters intended for publication should
eral Luisa Ortega Díaz, an outspoken hurt the Venezuelan people, but they are al- be addressed to: The Editor, 1211 Avenue
of the Americas, New York, NY 10036,
opponent of Mr. Maduro. ready suffering extreme deprivation. Some are or emailed to wsj.ltrs@wsj.com. Please
President Trump warned Mr. Maduro that starving. The U.S. and the willing members of include your city and state. All letters
pursuing this course would trigger U.S. sanc- the Organization of American States need to are subject to editing, and unpublished
tions, and on Monday the U.S. followed form a united front not to recognize this vote letters can be neither acknowledged nor “Being heard got me
returned.
through by freezing any assets Mr. Maduro or the regime it has produced. where I am today.”
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
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THE WALL STREET JOURNAL.
Free Trade Is a Two-Way Street
By Wilbur Ross
T
he Trump administration
last week celebrated the
workers and businesses
that make this country
great. The purpose of
“Made in America Week” was to rec-
ognize that, when given a fair
chance to compete, Americans can
make and sell some of the best, most
innovative products in the world.
Unfortunately, many governments
across the globe have pursued poli-
cies that put American workers and
businesses at a disadvantage. For
these governments, President Trump
and his administration have a clear
message: It is time to rebalance your
trade policies so that they are fair,
free and reciprocal.
China, the EU and other
trading partners put up
formidable barriers
to imports from America.
Many nations express commit-
ment to free markets while criticiz-
ing the U.S. for what they character-
ize as a protectionist stance. Yet
these very nations engage in unfair
trading practices, erect barriers to
American exports, and maintain sig-
nificant trade surpluses with us.
They argue that our $752.5 billion
trade deficit in goods last year was
simply a natural and inevitable con-
sequence of free trade. So, they con-
tend, America should have no com-
plaints.
Our major trading partners issue
frequent statements regarding their
own free-trade bona fides, but do
they practice what they preach? Or
are they protectionists dressed in
free-market clothing?
When it comes to trade in goods,
our deficits with China and the EU
are $347 billion and $146.8 billion,
respectively. As the nearby chart
shows, China’s tariffs are higher
than those of the U.S. in 20 of the 22
major categories of goods. Europe
imposes higher tariffs than the U.S.
in 17 of 22 categories, though the
With Sharif’s Ouster, Pakistan Takes a Step Backward
By Sadanand Dhume
A
s Pakistan approaches the 70th
anniversary next month of its
founding, it just presented the
world with an oddly familiar sight: a
civilian prime minister dismissed be-
fore the end of his term.
On Friday, the Supreme Court dis-
qualified Prime Minister Nawaz
Sharif from his position for not meet-
ing the constitutional requirement of
being sadiq and ameen, Islamic terms
that roughly translate as “truthful”
and “trustworthy.” Mr. Sharif has an-
nounced that his younger brother,
Punjab province Chief Minister Sheh-
baz Sharif, will be his successor.
For Nawaz Sharif’s many foes, in-
cluding those in the all-powerful
army and its historical ally, the judi-
ciary, the dismissal represents the
triumph of rule of law over corrup-
tion in public life.
Last year, the so-called Panama
papers—leaked documents that fo-
cused on a shadowy law firm that
provides financial services to some of
the world’s ultrawealthy—revealed
that three of Mr. Sharif’s children
owned offshore assets the prime
minister hadn’t disclosed on a wealth
statement. These included apart-
ments in London’s upmarket Mayfair
area.
Mr. Sharif hasn’t been convicted of
corruption. The immediate grounds
for his dismissal lie in not reporting
income he allegedly received from a
family firm in the United Arab Emir-
ates. But in popular perception his
dismissal is linked to the alleged cor-
ruption suggested by the Panama
revelations. Mr. Sharif and his family
strongly deny all such charges.
Despite being cloaked in the rule
of law, Mr. Sharif’s disqualification
marks a setback for Pakistan’s shaky
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Who's Protectionist?
Average applied tariffs for the U.S., the EU and China
U.S.
Animal products
Dairy products
Fruit, vegetables, plants
Coffee, tea
Cereals & preparations
Oilseeds, fats & oils
Sugars & confectionery
Beverages & tobacco
Cotton
Other agricultural products
Fish & fish products
Minerals & metals
Petroleum
Chemicals
Wood, paper etc.
Textiles
Clothing
Leather, footwear etc.
Non-electrical machinery
Electrical machinery
Transport equipment
Other manufactured goods
0%
Sources: World Trade Organization, U.S. Department of Commerce
chart does show that the EU and
China are much different regarding
tariff rates.
The EU charges a 10% tariff on
imported American cars, while the
U.S. imposes only a 2.5% tariff on
imported European cars. Today Eu-
rope exports 1.14 million automo-
biles to the U.S., nearly four times as
many as the U.S. exports to Europe.
China, which is the world’s largest
automobile market, has a 25% tariff
on imported vehicles and imposes
even higher tariffs on luxury vehi-
cles.
In addition to tariffs, both China
and Europe enforce formidable non-
tariff trade barriers against imports.
Examples include onerous and
democracy. A tweet by the country’s
former ambassador to the U.S., Hu-
sain Haqqani, summed up the prob-
lem: “Pakistan stays faithful to its 70-
year tradition: No PM ever removed
by voters; only by judges, generals,
bureaucrats or assassins.”
The Supreme Court’s order repre-
sents an aspect of Pakistan that sets it
apart from most of its South Asian
peers. Pakistani elites appear unwill-
ing to put up with flawed leaders as
the cost of democracy. Bangladesh, In-
dia, Nepal and Sri Lanka have also had
Unlike most of its
South Asian neighbors,
Islamabad won’t allow
democracy to take root.
their share of less-than-perfect lead-
ers. Unlike Pakistan, they have all al-
lowed voters to punish poor rulers by
turfing them out, and to reward rela-
tively good ones with re-election.
The exit of Mr. Sharif, elected (and
dismissed) three times since 1990,
also signals a setback for the long-
term U.S. goal of encouraging civilian
supremacy over the military. No
other Pakistani politician has the heft
to claw back power over national se-
curity and foreign policy from un-
elected generals who traditionally
call the shots.
As long as the army dominates
Pakistan, claiming a large chunk of
the national budget and ensuring lav-
ish lifestyles for its officers, the
country will remain unable to make
the investments in health and educa-
tion it needs to catch up with its
peers in Asia. Without civilian over-
sight, the army’s deeply ingrained
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OPINION
E.U. China
5 10 15 20 25 30
THE WALL STREET JOURNAL.
opaque procedures for registering
and gaining certification for im-
ports; unscientific sanitary rules, es-
pecially with regard to agricultural
goods; requirements that companies
build local factories; and forced
technology transfers. The list goes
on.
Both China and Europe also bank-
roll their exports through grants,
low-cost loans, energy subsidies,
special value-added tax refunds, and
below-market real-estate sales and
leases, among other means. Compa-
rable levels of government support
do not exist in the U.S. If these
countries really are free traders, why
do they have such formidable tariff
and nontariff barriers?
hostility toward India, suspicion of
the U.S., fealty toward China, and
support for terrorist proxies in Af-
ghanistan and India are unlikely to
end.
Mr. Sharif’s well-publicized desire
to normalize relations with India
placed him at odds with the army.
Those celebrating his exit most glee-
fully include the former military dic-
tator Pervez Musharraf (1999-2008)
and the cricketer-turned-politician
Imran Khan, who is widely regarded
as a potential prime minister more
palatable to the generals in Rawal-
pindi. Many analysts expect Mr. Khan
to be the primary beneficiary of the
Sharif family’s troubles in elections
due next year.
Historical patterns notwithstand-
ing, this was not how things were
meant to turn out in Pakistan. Mr.
Sharif’s election four years ago
marked a hopeful turn for the coun-
try’s democracy. Thanks in large part
to a strong showing in Punjab, the
country’s most populous province,
the Sharifs’ right-of-center Pakistan
Muslim League comfortably ousted
the left-of-center Pakistan Peoples
Party, which is closely associated
with the family of former prime min-
ister Benazir Bhutto.
With the business-friendly Mr.
Sharif in power for the third time,
and his brother in charge of Punjab, it
Notable & Quotable: Comey
From “Comey’s People” by Mat-
thew Continetti in the July/August
issue of Commentary:
It’s obvious [James] Comey was
the one behind the stories of [Presi-
dent] Trump’s dishonesty and bad
behavior. He admitted as much in
front of the cameras in a remark-
able exchange with Senator Susan
Collins of Maine. . . . The source for
the New York Times article was “a
good friend of mine who’s a profes-
sor at Columbia Law School,” Daniel
Richman.
Comey said that, after Trump
tweeted on May 12 that he’d better
hope there aren’t “tapes” of their
conversations, “I asked a friend of
mine to share the content of the
memo with a reporter. Didn’t do it
myself, for a variety of reasons. But
I asked him to, because I thought
that might prompt the appointment
of a special counsel. And so I asked
a close friend of mine to do it.” . . .
Every time I watch or read that
exchange, I am amazed. Here is the
former director of the FBI just flat-
out admitting that, for months, he
wrote down every interaction he
had with the president of the United
States because he wanted a written
Until we make better deals with
our trading partners, we will never
know precisely how much of our
deficit in goods is due to such trick-
ery. But there can be no question
that these barriers are responsible
for a significant portion of our cur-
rent trade imbalance.
China is not a market economy.
The Chinese government creates na-
tional champions and takes other ac-
tions that significantly distort mar-
kets. Responding to such actions
with trade remedies is not protec-
tionist. In fact, the World Trade Or-
ganization specifically permits its
members to take action when other
countries are subsidizing, dumping
and engaging in other unfair trade
practices.
Consistent with WTO rules, the
U.S. has since Jan. 20 brought 54
trade-remedy actions—antidumping
and countervailing duty investiga-
tions—compared with 40 brought
during the same period last year.
The U.S. currently has 403 outstand-
ing orders against 42 countries.
But unfortunately, in its annual
reports, the WTO consistently casts
the increase of trade enforcement
cases as evidence of protectionism
by the countries lodging the com-
plaints. Apparently, the possibility
never occurs to the WTO that there
are more trade cases because there
are more trade abuses.
The WTO should protect free and
35 fair trade among nations, not attack
those trade remedies necessary to
ensure a level playing field. Defend-
ing U.S. workers and businesses
against this onslaught should not be
mislabeled as protectionism. Insist-
ing on fair trade is the best way to
ensure the long-term strength of the
international trading system.
The Trump administration be-
lieves in free and fair trade and will
use every available tool to counter
the protectionism of those who
pledge allegiance to free trade while
violating its core principles. The U.S.
is working to restore a level playing
field, and under President Trump’s
leadership, we will do so.
This is a true free-trade agenda.
Mr. Ross is U.S. secretary of com-
merce.
looked like the civilian government in
Islamabad stood a reasonable chance
of wresting authority from the gener-
als in nearby Rawalpindi.
Four years later those hopes lie in
tatters. Though the army hasn’t for-
mally seized power, its fingerprints
are all over Mr. Sharif’s disqualifica-
tion. Of the six-member team set up
after the Panama scandal broke, two
investigators were army officers
nominated by military intelligence
agencies. Both the speed of the in-
quiry and the judiciary’s willingness
to evict an elected prime minister on
what amounts to a technicality sug-
gest at least a green light from the
army.
Even if the army didn’t orches-
trate Mr. Sharif’s ouster, it will be the
major beneficiary. The prime minis-
ter’s departure sends a clear signal to
politicians that they wrestle with the
men in khaki at their own peril. With
no domestic pressure on the generals
to reform, Pakistan will remain what
the Singaporean scholar Tan Tai
Yong calls a garrison state dominated
by the army. For the nuclear-armed
Islamic republic’s 190 million people,
dreams of a stable democracy will
have to wait.
Mr. Dhume is a resident fellow at
the American Enterprise Institute and
a columnist for WSJ.com.
record in case the president ever
fired or lied about him. And when
the president did fire and lie about
him, that director set in motion a
series of public disclosures with the
intent of not only embarrassing the
president, but also forcing the ap-
pointment of a special counsel who
might end up investigating the pres-
ident for who knows what. And
none of this would have happened if
the president had not fired Comey
or tweeted about him. He told the
Senate that if Trump hadn’t dis-
missed him, he most likely would
still be on the job.
Rarely, in my view, are high offi-
cials so transparent in describing
how Washington works. Comey re-
vealed to the world that he was
keeping a file on his boss, that he
used go-betweens to get his story
into the press, that “investigative
journalism” is often just powerful
people handing documents to report-
ers to further their careers or agen-
das or even to get revenge. And as
long as you maintain some distance
from the fallout, and stick to the ab-
solute letter of the law, you will
come out on top, so long as you have
a small army of nightingales singing
to reporters on your behalf.
Tuesday, August 1, 2017 | A15
HillaryCare
Lessons
ForToday
By Joe Lieberman
O
ne of the greatest bonuses of
my years in the Senate was
getting to know Sen. John Mc-
Cain. John has consistently served
causes larger than himself, begin-
ning with our country. The speech he
gave on the Senate floor last week,
followed by his “no” vote after mid-
night Thursday on a health-care bill
nobody wanted to become law, was
one of his finest hours.
His message was eloquent and di-
rect. As he put it: “This country—
this big, boisterous, brawling, intem-
perate, restless, striving, daring,
beautiful, bountiful, brave, good and
magnificent country—needs [the
Senate] to help it thrive. That re-
sponsibility is more important than
any of our personal interests or po-
litical affiliations.” To live up to its
promise, the world’s greatest delib-
erative body needs to return to the
spirit of bipartisan cooperation that
can lead to real legislative accom-
plishments.
Pat Moynihan was right.
President Clinton should
have pursued legislation
with bipartisan support.
It reminded me of a message an-
other great senator, Pat Moynihan of
New York, delivered to another ad-
ministration 25 years ago. In 1993
Moynihan, the new chairman of the
Senate Finance Committee, offered
strategists at the Clinton White
House a suggestion. He knew many
Democrats were pressuring the pres-
ident to pursue universal health care,
but Moynihan believed nearly total
Republican opposition would make it
a divisive opening flop for the new
administration. He argued that in-
stead the president should focus on
another promise he had made, to
“end welfare as we know it,” because
Republicans could be convinced to
back welfare reform.
Pat believed the nation’s welfare
system was in a more acute crisis
than its health-care system. He also
believed that major reforms rarely
passed Congress with the support of
only one party. “They pass 70-30,”
he explained, “or they fail.”
Moynihan’s wisdom fell on deaf
ears. The White House vigorously
pursued a broad-based health-care-
reform agenda crafted by First Lady
Hillary Clinton and her team. They
presumed most Republicans would
line up against them but figured the
Democrats would back them. In the
end, Democrats weren’t any more
united than Republicans are today.
Their disarray doomed the plan be-
fore it even came up for a vote.
Republicans won resoundingly in
the 1994 midterm elections, and
President Clinton learned from the
experience. The White House re-
verted to the approach Moynihan
had initially suggested. While the
senator himself ended up opposing
the 1996 welfare reform, his political
advice worked. Mr. Clinton’s embrace
of bipartisan negotiation and com-
promise delivered a series of victo-
ries, including a balanced budget and
the creation of the Children’s Health
Insurance Program.
What can we learn from Mr. Clin-
ton’s evolution? Maybe most impor-
tant for President Trump, legislative
strategies rarely succeed when they
depend on a single party. If Mr.
Trump were to extend a hand to
Democrats, Washington might well
prove capable of solving some of
America’s problems and seizing
some of its opportunities. For that to
happen, Democrats in Congress will
have to engage with Mr. Trump the
way Newt Gingrich and his party
worked with Mr. Clinton.
Rallying both parties to repair
America’s infrastructure could be
President Trump’s version of welfare
reform. Tax reform could also gain
bipartisan support. Then Congress
can return to more divisive issues,
considering them, as Mr. McCain
suggested, through regular order. A
good place to start would be with the
bipartisan health-care reforms that
the House No Labels Problem Solvers
Caucus released yesterday.
To win in Washington, one must
counter and court the opposition. As
Mr. McCain said last week, “Incre-
mental progress, compromises that
each side criticize but also accept,
just plain muddling through to chip
away at problems and keep our ene-
mies from doing their worst isn’t
glamorous or exciting. It doesn’t feel
like a political triumph. But it’s usu-
ally the most we can expect from
our system of government, operating
in a country as diverse and quarrel-
some and free as ours.”
Mr. Lieberman, a former U.S. sen-
ator from Connecticut, is a national
co-chairman of No Labels.
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
A16 | Tuesday, August 1, 2017 THE WALL STREET JOURNAL.

WORLD NEWS

EU Workers Look Beyond Britain ECB Takes

Hard Line
Some businesses find
job openings tough to
fill amid U.K. exit vote
On Reform
and eurozone pickup Proposals
BY JASON DOUGLAS BY TOM FAIRLESS

FLITWICK, England—Neil FRANKFURT—The European

Goldman, who employs work- Union should consider slapping
ers from across the European large fines on European gov-
Union in his food-packaging ernments that fail to adopt its
business, blames the U.K.’s economic-reform proposals, the
Brexit vote last year for mak- European Central Bank said,
ing vacancies harder to fill. underlining the ECB’s mounting
Britain has for years been a frustration at a sluggish pace
magnet for European job seek- of eurozone reform that risks
ers drawn by decent wages, the hurting the bloc’s longer-term
English language, and plentiful growth and stability.
ABBIE TRAYLER-SMITH FOR THE WALL STREET JOURNAL

openings in the country’s easy- The stern advice, in a re-

to-hire economy. That attrac- port published Monday, comes
tion now appears to be waning as the ECB prepares to discuss
as a consequence of its vote to reducing its large monetary
leave the EU, as well as acceler- stimulus as soon as its next
ating growth in the eurozone. policy meeting on Sept. 7. Less
In industries as diverse as support from Frankfurt will
agriculture, health care and shift the onus onto national
manufacturing, executives are governments to help drive
growing anxious about labor economic growth in the 19-na-
shortages that they fret could tion currency union.
crimp expansion plans and re- European governments can
strain the British economy. be fined up to 0.1% of gross
The Confederation of British domestic product if they re-
Industry, an employers’ lobby About 40% of the 150 employees at Colpac, a food-packaging business in Flitwick, Bedfordshire, are from other EU countries. peatedly fail to address eco-
group, has said continued access nomic flaws flagged by EU au-
to high-skilled and low-skilled been reassuring and encourag- thorities under a new risk-
workers from abroad is critical ing everyone that Britain is Destination Elsewhere monitoring system launched
to sustain economic growth. open for business,” Mr. Gold- EU citizens from outside Britain, and especially from Eastern Europe, have long boosted during the region’s recent debt
Any ebbing of the flow of man said. the U.K.'s workforce, but there are signs that flow is starting to ebb since the Brexit vote. crisis. The system, known as
foreign workers shouldn’t come The U.K. experienced waves the macroeconomic imbal-
as a surprise, since Brexit was of new arrivals from the EU over Change in U.K. national insurance registrations to foreign EU Net annual migration to the ances procedure, aims to pre-
designed in large part to make the past two decades, especially citizens from year ended March 2016 to year ended March 2017 U.K. from EU8* countries vent worrisome economic de-
that happen. Reducing immigra- after it opened its doors to –5.8% European Union 60,000 2016 velopments such as high
tion from the EU is a central workers from new member –23.1% Poland 5,000 current-account deficits, un-
plank of Prime Minister Theresa states in Central and Eastern Eu- –21.3% Slovakia 50,000 sustainable debt levels and
May’s Brexit strategy. Quitting rope in 2004. The influx fueled –19.1% Estonia house-price bubbles.
the bloc, she says, was a vote to its economy but also stoked –17.3% Hungary In practice, though, the EU
40,000
take back control of Britain’s public anxiety. Last year’s Brexit –13.5% Ireland has so far stopped short of is-
“borders, laws and money.” vote was in part a backlash –13.3% Latvia suing such sanctions.
Indeed, Brexit advocates against immigration, polls sug- –9.3% Netherlands 30,000 But the ECB suggested that
say, scarcity has a silver lin- gest, though it also reflected –9.1% Spain should change. “There seems
ing: Labor shortages could British discomfort at what de- *Czech Republic, Estonia, Hungary, –8.5% France 20,000 to be a strong case for apply-
help boost Britain’s lagging tractors see as the EU’s exces- Latvia, Lithuania, Poland, Slovakia, –7.8% Portugal ing the corrective arm of this
productivity if firms respond sive influence over U.K. affairs. Slovenia –7.4% Lithuania procedure for all countries
Sources: Department for Work and
10,000
by investing in new machinery More than 2.3 million work- –5.9% Germany with excessive imbalances,”
Pensions (Insurance registrations);
and training. On the other ers from other parts of the EU Office for National Statistics
Romania 1.5% the central bank said.
hand, economists caution, for- were working in the U.K. in (migration) Bulgaria 6.1% 0 EU policy recommendations
eign workers are themselves the first quarter of 2017, 2½ THE WALL STREET JOURNAL. Italy 7.8% 2009 ’10 ’11 ’12 ’13 ’14 ’15 ’16 typically address issues such
an important source of pro- times as many as a decade ago as boosting the sustainability
ductivity-enhancing skills. and the highest number ever tries that joined the bloc in and skills at the British Cham- Ltd. in Peterhead, Scotland, of public finances, reducing
Mr. Goldman, chief execu- recorded. EU nationals ac- 2004—a group that includes bers of Commerce. which supplies supermarkets the tax burden on labor, and
tive of Colpac Ltd., based in count for about 7% of Britain’s Poland, Lithuania and Hun- Another reason for skipping with fishcakes and other increasing the efficiency of
Bedfordshire some 40 miles 32-million-strong workforce. gary—fell to 5,000 from 46,000 Britain: A battered pound chilled seafood products, says public administration and
north of London, employs 150 There are signs that em- a year earlier, according to the means foreign workers’ earn- he needs to find around 50 state-owned enterprises.
people, about 40% of whom ployment swell is ebbing. The Office for National Statistics. ings don’t go as far when new workers every year to re- ECB President Mario Draghi
are from other EU countries. number of EU nationals receiv- Uncertainty over the future spent at home. The eurozone’s plenish those who leave his frequently scolds eurozone
He said he spent the months ing national insurance num- status of EU citizens in the expansion and a strengthening 500-strong workforce to re- governments for their failure to
after the referendum in June bers, which are required to U.K. after Brexit is one factor euro mean some workers are turn to their homes elsewhere implement reforms that could
last year soothing foreign em- start work or claim benefits, persuading some footloose looking to countries such as in the EU. That used to be bolster the region’s growth rate
ployees worried about their was 6% lower in the year workers to look elsewhere, re- Germany instead. Others are straightforward, as departing and lower unemployment. At a
future in Britain. A handful of through March than a year ear- cruiters say. Current and po- choosing to stay home alto- workers would often recom- news conference 10 days ago,
them have already left and he lier, according to the Depart- tential workers “need some gether to take advantage of mend their friends and family. Mr. Draghi warned that the
says he is struggling to find ment of Work and Pensions. certainty around residency domestic labor markets. “We are just not seeing that pace of reforms “needs to be
replacements. Net migration to the U.K. in rights,” said Jane Gratton, Ryan Scatterty, managing coming through anymore,” he substantially stepped up to in-
“Ever since that day, I’ve 2016 from the eight EU coun- head of business environment director of Thistle Seafoods said. crease resilience.”

WORLD WATCH
U.K. Cabinet Bickers Over Brexit CHINA goods and services, expanded a
BY JENNY GROSS edge” scenario where goods seasonally adjusted 0.6% from
and people would stop being Manufacturing Data the previous quarter, and was up
LONDON—Free movement able to move across Britain’s Suggest a Slowdown 1.8% from the second quarter of
of people between the U.K. borders as soon as the U.K. 2016, according to a preliminary
and the European Union will left the bloc. A gauge of manufacturing ac- reading published Monday by
end when the U.K. leaves the He also said that rules af- tivity fell more than expected in the National Statistics Institute.
bloc in March 2019, Prime fecting Britain’s relations with July, offering a sign of an antici- The next GDP report is due
Minister Theresa May’s the bloc would be imple- pated slowdown in the world’s Aug. 22. —Anthony Harrup
spokesman said Monday, un- mented gradually by 2022 and second-largest economy after a
derscoring divisions within that it would be some time be- strong start to the year. INDIA
the government over future fore full immigration controls China’s official manufacturing
Central Bank Seen
OLI SCARFF/GETTY IMAGES

immigration policy. could be introduced. purchasing-managers’ index fell

Ministers have agreed over Over the weekend, Liam to 51.4 in July from 51.7 in June, Cutting Key Rate
the past week that the U.K. Fox, trade secretary, said in according to data released by
will seek a multiyear transi- an interview with the Sun- the National Bureau of Statis- The central bank is likely to
tion arrangement with the EU day Times that he doubted tics. The July reading fell below cut its key lending rate by a
to give businesses time to ad- free movement of people could a median forecast of 51.6 from a quarter percentage point this
just to Brexit, but they have continue for up to three years Wall Street Journal poll of econ- week after a sharp slowdown in
expressed differing views The passport check for EU citizens at Gatwick Airport after the U.K. leaves the EU. “I omists, but still remained above inflation and weaker-than-ex-
about which EU rules would have not been involved in any the 50 mark that separates ex- pected economic growth.
continue to apply—particu- will continue as it is now.” make plans, but cabinet mem- discussion on that,” said Mr. pansion from contraction, as it The Reserve Bank of India’s
larly on immigration. Mrs. May’s spokesman’s bers have sent mixed signals. Fox, who supported leaving has for 12 months straight. monetary-policy committee,
James Slack, Mrs. May’s comments, if followed Ministers have been bolder the EU. —Grace Zhu headed by Gov. Urjit Patel, is
spokesman, said free move- through, would appear to rule in voicing opinions on Brexit Tony Travers, politics pro- scheduled to announce its rate
ment, which gives citizens of out the least-disruptive type since Mrs. May’s Conservative fessor at the London School of MEXICO decision on Wednesday.
the bloc the right to live and of transition deal with the Party lost its parliamentary Economics, played down the Eleven of 14 economists
work in any EU country with- EU—and also the easiest to majority in a June election. significance of the Downing Services Strength polled by The Wall Street Jour-
out a visa, would end when negotiate—under which the Chancellor of the Exchequer Street spokesman’s words. He Helps Push Up GDP nal predicted it would cut its key
Britain departs the EU but U.K. would stay temporarily Philip Hammond last week said that although the com- lending rate to 6% from 6.25%,
that further details were up inside the bloc’s single market gave several fresh details ments appear to contradict The country’s economic while three economists expect
for negotiation. Talks got for- and its customs union. The EU about Britain’s Brexit plans, Mr. Hammond’s, in practice, growth slowed less than ex- the RBI to leave the rate un-
mally under way in June. requires countries to agree to including that the U.K.’s rela- they may not be that different. pected in the second quarter as changed.
“Other elements of the free movement of people if tionship with the EU could “Free movement is ending, robust output in services contin- Benchmark consumer inflation
post-Brexit immigration sys- they want to reap the benefits look similar to what it does but that wouldn’t preclude re- ued to compensate for a modest was at 1.5% in June, well below
tem will be brought forward in of free movement of trade and now for a number of years af- introducing something that advance in industrial production. the 2% lower end of the central
due course,” he said. “It would services within the bloc. ter leaving. isn’t the same as free move- Gross domestic product, a bank’s target range.
be wrong to speculate on what Businesses and others have Mr. Hammond, who sup- ment minus some tiny ele- broad measure of output of —Debiprasad Nayak
these might look like or to been eager for certainty on ported staying in the EU, said ment,” he said, referring to
suggest that free movement the U.K.’s approach as they he wanted to avoid a “cliff- the transition period.

Eurozone Data Complicate ECB’s Next Move

BY PAUL HANNON tistics agency said the propor-
tion of workers without jobs
The eurozone’s unemploy- across the 19 countries that
ment rate fell to its lowest use the euro fell to 9.1% in
that combination of falling un- tive, the fall in unemployment
employment and soft inflation is not translating yet into in-
shouldn’t be happening. Cen- flationary pressures.”
tral bankers believe that as As economic growth has ac-
NAVESH CHITRAKAR/REUTERS

level in more than eight years, June from 9.2% in May, reach- spare capacity—one element celerated this year, the ECB
but the annual rate of inflation ing its lowest level since Feb- of which is unemployment— has come under greater pres-
is unchanged, new data ruary 2009. But consumer shrinks, wages and prices sure from Germany to wind
showed Monday—highlighting prices were just 1.3% higher in should rise more rapidly. down its stimulus programs.
the challenge at the heart of July than a year earlier, as the “The eurozone continues to Speaking earlier in July, ECB
the European Central Bank’s rate of inflation was un- create jobs at a very strong President Mario Draghi said
decision on dialing down its changed, at its lowest level in pace,” said Fabio Balboni, an inflation remained his key tar-
stimulus programs. 2017. economist at HSBC. “Unfortu- get and that there are few RITUAL IMMERSION: A devotee is plunged into the Bagmati
The European Union’s sta- According to textbooks, nately, from an ECB perspec- signs it is set to rise soon. River while participating in the Bol Bom pilgrimage in Nepal.
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TECHNOLOGY: ALPHABET’S PLAN TO STORE RENEWABLE ENERGY NEEDS SALT B4

BUSINESS & FINANCE

© 2017 Dow Jones & Company. All Rights Reserved. * * * ** THE WALL STREET JOURNAL. Tuesday, August 1, 2017 | B1

S&P 2470.30 g 0.07% S&P FIN À 0.62% S&P IT g 0.53% DJ TRANS g 0.48% WSJ $ IDX g 0.40% LIBOR 3M 1.311 NIKKEI (Midday) 19959.41 À 0.17% See more at WSJMarkets.com

Grocers Hit by Glut of Retail Space Oil Prices

Re-Enter
Industry is vulnerable
to store closures after
rapid growth amid shift Territory
in shopping habits
BY HEATHER HADDON
Above $50
AND JULIE JARGON BY ALISON SIDER

Never before in America has Oil prices turned higher late

so much retail square footage Monday to settle above $50 a
been devoted to selling food— barrel for the first time in
and it is too much. more than two months.
A massive build-out by re- U.S. crude futures rose 46
tailers has left the country cents, or 0.93%, to $50.17 a
piled up with grocery shelves barrel on the New York Mer-
as consumers are shifting from cantile Exchange. Brent, the
big weekly shopping trips to global benchmark, rose 13
more snacking and to-go cents, or 0.25%, to $52.65 a
meals. The mismatch has flat- barrel on ICE Futures Europe.
tened retail sales and leaves U.S. crude futures gained
the industry vulnerable to a nearly 9% in July for their
wave of closures that some ex- largest monthly percentage
ecutives, bankers and industry gain since April 2016. Rapidly
experts think is coming soon. declining supplies of oil in U.S.
Commercial square footage storage tanks and Saudi Ara-
of retail food space per capita bia’s commitment to limit its
last year set a record, with exports helped convince many
LUKE SHARRETT/BLOOMBERG NEWS

4.15 square feet of food retail traders and investors that the
per person, according to Co- supply glut that has weighed
Star Group, a commercial real- on the market for three years
estate firm, nearly 30 times is waning.
the amount of space allocated
‘There’s only so much food we can buy.’ Monday’s move is the latest
to groceries at major chains in sign of renewed confidence in
1950. Suzanne Mulvee, director of research for CoStar the oil market. “Everyone has
To be sure, major grocery been so, so bearish. Now it’s
chains weren’t as numerous the perfect recipe for a con-
decades ago, with many Amer- Kroger, the nation’s largest traditional supermarket chain by stores and sales, is reducing new-store openings this year to 55 from 100. trarian rally,” said Mark Beni-
icans shopping for food at gno, co-director of energy
mom-and-pop stores. conventional chains had lifted trading at INTL FCStone.
But the growth in groceries same-store sales for food re- Munchtime Oil prices have languished
has extended across many tailers by at least 3% annually Americans as a whole are consuming less food on a per-capita basis, while millennials are increasingly below $50 since late May, af-
types of retailers in recent since 2013, that metric was snacking their way through the day. ter the Organization of the Pe-
years. Part of the expansion flat in 2016 and is projected to troleum Exporting Countries
comes from grocers, who ac- remain static this year as com- Annual number of meals Per-capita meals consumed by Snacks per day 2014 2016 and other major exporters dis-
celerated their store openings petition grows, according to consumed per capita age, change from previous year* appointed many investors by
as a way to drive sales growth FactSet. “There’s only so much Once 41% not agreeing to deeper output
after the 2008 recession. At food we can buy,” said Su- 18-34 –5%
a day 37% cuts. Investors who had bet
the same time, club chains, zanne Mulvee, director of re- 1,550 that the production cut agree-
Twice 33
dollar stores, pharmacies—and search for CoStar. 35-44 No change
39
ment would send oil prices
a day
even gas stations—increased The food-retail sector has 1,500 climbing toward $60 a barrel
their fresh food offerings to become even more saturated 45-54 No change 3-4 times 13 began to give up hope. Oil
a day 17
drive traffic and boost profits. at a time when competition is 2016 prices tumbled into bear-mar-
1,450 Note: Online
“Everybody is getting into only getting fiercer, particu- 1,492 meals 55-64 2% 5 or more 2 survey with ket territory in June.
the grocery business,” said Da- larly at the two ends of the times 1 2,565 Several factors helped lift
vid Hirz, chief executive of shopping spectrum. 1,400 11
respondents
prices Monday, after they ini-
65 and older –2% Do not conducted March
Smart & Final Stores Inc., a Cal- Growing European deep-dis- 1996 2000 ’05 ’10 ’15 snack 6 14-15, 2016 tially edged lower.
ifornia-based warehouse grocer. counters Aldi and Lidl are vy- The prospect of a rapid in-
While shopper loyalty to Please see FOOD page B2 *12 months ending November 2016 Sources: NPD Group (meals); AlixPartners (snacks) THE WALL STREET JOURNAL. crease in U.S. production has
weighed on the market this
year, but the U.S. Energy In-
HEARD ON THE STREET By Anjani Trivedi formation Administration re-
ported Monday that its

Chinese Lenders’ Dash for Capital Under Way

monthly figures showed that
U.S. oil output in May wasn’t
as high as preliminary weekly
figures indicated.
Momentum-focused traders
Investors —that can be switched into struggle to attract deposits, ance-sheet assets onto their reason Chinese banks have were likely pulled in as oil
have long its Shenzhen-listed shares. rose 50% last year. It has books. That will likely force raised $100 billion of debt prices broke through key tech-
questioned While convertibles don’t also been embroiled in high- more banks to raise capital this year, up 20% from last nical levels late in the day
when China’s count as equity straight profile cases lending to trou- to keep their ratios robust. year. Such funding is getting Monday.
banking sys- away, they could help im- bled companies like China In theory, banks could more expensive and ulti- Automated systems that
tem, with its prove Ping An’s equity levels Huishan Dairy and Sunac earn their way out of trou- mately won’t help absorb follow momentum have grown
heaps of bad loans and hid- when they are turned into against shares pledged by ble. That won’t be easy, losses. especially influential in the
den leverage, would resort to stock. their senior executives. though, as Chinese authori- Other lenders could, then, market this year. While some
raising much-needed equity. Ping An could do with the Still, Ping An is unlikely to ties try to ease the country’s follow Ping An Bank’s lead in analysts and brokers have
From the look of it, the funds. Owned by Ping An In- be the last bank seeking credit bubble. Banks’ net in- turning to convertibles as a blamed them at times for sell-
weakest lenders are starting surance, listed as one of the fresh capital. Across China’s terest margins have deterio- stopgap. Its planned convert- offs and depressed prices, the
to do so. world’s systemically impor- banking system, capital cush- rated to their lowest in over ible bond is equivalent to systems also likely contributed
Ping An Bank, a midsize tant insurers, Ping An Bank ions have been deteriorating. five years, and earnings are 15% of its core equity Tier 1 to the sharp rise Monday af-
lender notorious both for is a poster child for Chinese Capital-adequacy ratios, at barely growing: Ping An ratio. China Everbright, a ternoon, brokers said.
selling piles of high-yielding bank excesses. Its loan im- 11% on average, might look Bank’s net profit increased sizable Chinese bank, also is- —Sarah McFarlane,
investment products and for pairments rose almost 30% healthy, above the minimum just 2% in the first quarter sued 30 billion yuan’s worth Jenny W. Hsu
sitting on masses of overdue on the year in the first quar- requirement of 7.5% to 9%, this year. back in March. and Dan Molinski
loans, said last week that it ter. Its issuance of wealth- depending on bank size. But Another problem: With As Chinese banks’ hunt for contributed to this article.
plans to issue 26 billion yuan management products, used regulators have been tighten- Chinese banks trading at 60% capital gets going, a conver-
($3.9 billion) of convertible to raise cash by many mid- ing rules, including forcing to 70% of their book value, sion to convertibles could  Natural-gas prices sink to a
bonds—uncommon in China size Chinese banks that banks to bring more off-bal- raising equity is tricky, one prove lasting. five-month low. ..................... B10

Boeing Helps Blue-Chip Index Soar to New Highs INSIDE

BY AMRITH RAMKUMAR efforts helped it generate market in some ways is cer-
Jet Fuel more than twice as much free tainly something to be wary
Shares of Boeing Co. rose The Dow Jones Industrial Average is up 10.8% this year, Boeing cash as analysts were expect- of,” said Nathan Thooft, senior
for a seventh straight trading led in large part by a sustained surge in Boeing shares. +55.7% ing for the latest quarter. managing director of global
session Monday, hitting an all- Boeing also raised its finan- asset allocation at Manulife
50%
time high and lifting the Dow cial outlook and the firm has Asset Management.
Industrials to their 30th re- been buying back shares, help- Meanwhile, some analysts
cord close this year. 40 ing to support its share price. caution that the shares’ rapid
The shares climbed $1.19, or
0.5%, to $242.46 after execu-
Boeing’s market value has
climbed by almost 50% in
run up and relatively high val-
uation could lead to a selloff if
HACKERS
tives said the Chicago com- 30 2017, recently reaching $143 the Chicago company doesn’t BREACH THE
pany expects Indian airlines to
order up to 2,100 planes worth Earnings
billion.
Yet the intensity of Boeing’s
meet production targets.
The shares are trading at
WALL AT HBO
20
about $290 billion over 20 report rise is raising concerns among about 24 times Wall Street’s
years, according to Reuters. some investors over the health projected earnings for the next CYBERSECURITY, B2
Boeing has risen 15% in the 10 of the broader market. Boeing 12 months, according to Fact-
past seven sessions around the Dow
has accounted for more than Set, compared with about 18
release of its quarterly earn- +10.8% three-quarters of the Dow’s for the S&P 500 and 17 for the
0
ings last Wednesday, account- rally over the past seven trad- Dow.
ing for more than half of the J F M A M J J ing sessions. But lately that hasn’t mat-
Dow’s advance in July. Source: WSJ Market Data Group THE WALL STREET JOURNAL. While large share-price in- tered.
For the year, the stock is up creases in a concentrated seg- Since the Dow is price-
56%, making it by far the best growing confidence that an in- from a year-earlier loss of ment of the market are noth- weighted, meaning that com-
performer in the Dow and the crease in global airline passen- $234 million, or 37 cents a ing new—much of 2017 has panies with higher share
fifth-best performer in the gers means that airlines will share, even as revenue de- been spent chronicling the rise prices exert more influence on
S&P 500.
Behind the surge are signs
follow through on recent jet
orders.
clined to $22.74 billion from
$24.76 billion. Year-earlier re-
of popular technology shares
such as Amazon.com Inc. and
the index’s direction, an even
longer Boeing rally could carry
VENEZUELAN
of strength both at Boeing and Solid results have helped as sults were hit by charges on Apple Inc.—it has been un- the Dow to 22000, from Mon- BONDS FALL
in the global economy that
makes up the market for the
well.
For the second quarter,
commercial and military pro-
grams.
usual for a manufacturing
company to be the subject of
day’s close of 21891.12.
AFTER VOTE
company’s products. Boeing swung to a profit of Investors focused on the such fervor.  Boeing extends its insourcing
Investors are showing $1.76 billion, or $2.89 a share, fact that Boeing’s cost-cutting “The narrowness of this effort with new unit. ........... B3 CREDIT MARKETS, B11
 For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
B2 | Tuesday, August 1, 2017 * *** THE WALL STREET JOURNAL.

INDEX TO BUSINESSES BUSINESS & FINANCE

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.

A E MSG Networks ......... B12

Albertsons Companies
.....................................B2
Alphabet .............. B4,B11
Altria Group..............B11
Amazon.com..........B1,B4
AMC Networks ......... B12
Anheuser-Busch InBev
............................. B3,B12
Apple....................B1,B11
Axis Bank....................B4
B Global BTG..................B3
Bitmain......................B10
Blackstone Group ..... B10
Boeing....................B1,B3
British American
Tobacco ................... B11
C HSBC Holdings..........B10
Capital One Financial.A1
Central Grocers...........B2
Charter Communications
...................................B11
Chiltern International.B3
China Everbright.........B1
China Huishan Dairy
Holdings....................B1
Citigroup..............A1,B10
CoStar Group .............. B1
Energy Transfer National Air Cargo......B3
Partners..................B10 P
F Philip Morris
International...........B11
Facebook....................B11
Ping An Insurance
Fiat Chrysler
(Group) of China ...... B1
Automobiles ............. B5
Q
Flipkart........................B4
G Qualcomm...................B4
General Motors...........B5 R
Rockwell Collins..........B3
H Royal Dutch Shell.......B3
Heineken..............B3,B12 S
Honda Motor...............B5 Sanofi..........................B3
Honeywell International Scana...........................B2
.....................................B3 Scripps Networks
Interactive.........A1,B12
HSBC Holdings (UK Snapdeal.com..............B4
Reg).........................B12 SoftBank Group..........B4
Hyundai Motor............B5 Southern ..................... B2
Sunac China Holdings B1
I
T
Imperial Brands ........ B11
Intel.............................B4 Time Warner...............B2
Toshiba........................B2
J Toyota Motor..............B5
J.P. Morgan Chase
U
............................. A1,B10

Crown Media Holdings
...................................B12
D L
Didi Chuxing Technology
.....................................B5
Discover Financial
Services .................... A1
K UniFirst ....................... B3
Kroger..........................B2
LabCorp ....................... B3
Lions Gate
Entertainment........B12
Lyft..............................B4
MACALL B. POLAY/HBO
Uber Technologies.B4,B5
V
Viacom ........................ A6
Volkswagen.................B3
Volvo Car.....................B5
W A scene from HBO’s ‘Game of Thrones.’ Details on a future episode were posted, although no actual episodes were released.

Hackers Stole HBO Programming

Discovery Walt Disney................B2
Communications M-N Westinghouse Electric
......................A1,B11,B12 Marsh Supermarkets..B2 .....................................B2

INDEX TO PEOPLE BY JOE FLINT

A G
Aggarwal, Sean...........B4
Aguilar, Omar............B12
Alf, Christopher..........B3
Ammann, Dan.............B4
B Horowitz, Ben.............B4
Batra, Gautam..........B12
Bayazitoglu, Kent.....B10
Benigno, Mark ............ B1
Briggs, John..............B11
C J
Carr, Ronan ............... B12
Christodoro, JonathanB4
Croatti, Ronald............B3
Culverhouse, Stuart . B11
D Webber, Michael.........B4
Debroux, Laurence......B3
Ding, Wenwu .............. B4
Gheedia, Ankit..........B12
Green, Logan...............B4
Gulliver, Stuart..B10,B12
H Sintros, Steven...........B3
Huenefeld, Andy.......B10
Huffington, Arianna...B4
I
Iger, Robert.................B2
Jarrett, Valerie ........... B4
L
Laughlin, Robert.........B4
M Among the stolen goods
Malone, John ............ B12
Mikitani, Hiroshi.........B4
Miller, Charlie ............. B5
AND ROBERT MCMILLAN
P “Room 104” and “Barry.” Also
Plepler, Richard...........B2 Westeros is under siege by
Porat, Ruth ................. B4 hackers.
HBO, home of “Game of
S Thrones,” is the latest enter-
tainment company to be
hacked and have its content
T
leaked online.
Thooft, Nathan...........B1 In a memo to staff, HBO
Trancik, Jessika .......... B4 Chief Executive Richard Ple-
Tucker, Mark.............B12 pler confirmed Monday that
V proprietary information, in-
cluding some of its shows,
Valasek, Chris.............B5
was recently stolen. HBO said
Ver, Roger .................B10 it is working with law en-
W forcement and cybersecurity
Ward-Murphy, Zahra B12
firms to fix the breach.
posted by a hacker calling him-
Wei, Jun......................B4
self Little.Finger66 on emails
X
were episodes of the HBO
shows “Ballers,” “Insecure,”
posted were details on a future
episode of “Game of Thrones”
although no actual episodes
were posted. Little.Finger66
didn’t respond to a request for
comment.
Besides content and pro-
gramming material, personal
information for at least one
senior HBO executive was
posted. HBO, a unit of Time
Warner Inc., declined to elab-
orate on what specifically was
stolen. News of the hack was
first reported by Entertain-
ment Weekly.
“The problem before us is
unfortunately all too familiar
in the world we now find our-
selves a part of,” Mr. Plepler
said in a statement.
In early May, a hacker re-
leased 10 episodes of the Net-
flix television show “Orange Is
the New Black,” following a
monthslong extortion attempt
directed at Larsen Studios, a
postproduction company that
was working on the show.
Weeks later, during an in-
ternal meeting, Walt Disney
Co. Chief Executive Robert
Iger told employees that
hackers threatened to post an
unreleased Disney film online
unless the company paid a
ransom in bitcoin, a digital
currency that is often used
by cybercriminals. Disney
didn’t play ball and no movie
was posted, suggesting it was
a hoax.
Hackers are increasingly
looking for ways to squeeze
money directly out of their
victims via extortion and “ran-
somware” infections, which
lock victims out of their sys-
tems until they pay a fee. A
January study from the cyber
research group Ponemon Insti-
tute found that 51% of U.S.
companies had experienced a
ransomware attack.
Over the past year a series
of casino and energy compa-
nies also have been hacked
and hit with extortion de-
mands ranging from $50,000
to $500,000, according to
FireEye Inc., a cybersecurity
company that investigates
data breaches.

FOOD
F Xu, Mandy.................B10
Miura-Ko, Ann ............ B4
Flint, Douglas............B12 Moeller, Martin.........B12 Z
Fu, Victor .................. B11 Morden, Siobhan.......B11 Zimmer, John..............B4

Continued from the prior page

Scana Abandons ing for U.S. market share, hop-

ing their prices will win over
the budget-conscious shopper,
while internet companies like

Nuclear-Site Plans Amazon.com Inc. are trying to

lure higher-income grocery
shoppers online. Regional su-
permarkets and conventional
BY RUSSELL GOLD for it to cost around $14 bil- ones such as Kroger Co. and
lion. Albertsons Cos. are the most
Hopes for a U.S. nuclear re- The sharply higher estimate likely to get squeezed in the
naissance dimmed Monday raises questions about how process, according to analysts.
when the owner of a partially much it would cost to com- “We’ve hit that critical mo-
built power plant in South Car- plete the Georgia plant. Jacob ment where traditional super-
DAVID KASNIC FOR THE WALL STREET JOURNAL

olina pulled the plug after its Hawkins, a spokesman for markets have realized they
costs ballooned by billions of Georgia Power, a unit of South- can’t keep opening new stores
dollars. ern Co., said the company ex- to solve their problems,” Kan-
The decision by Scana Corp. pects to wrap up a cost-to- tar Retail analyst Diana Shee-
to abandon the V.C. Summer complete analysis of the han said.
Nuclear Station came months project in August. Once fin- Some grocers have started
after reactor builder Westing- ished, “we will work with the to retrench, similar to the way
house Electric Co. filed for Georgia Public Service Com- the broader retail market re-
bankruptcy, in part because of mission to determine the best duced square footage of brick-
cost overruns at the South path forward for Georgia cus- and-mortar stores as e-com-
Carolina nuclear plant and a tomers,” he said. merce drew away customers.
similar project owned by Unexpected costs related to Kroger, the nation’s largest
Southern Co. in Georgia. Westinghouse’s first-of-its- traditional supermarket chain Bill Garrett with his wife, Angela, at a store In Illinois. He cut his grocery bill by shopping on Amazon.
The nuclear plants were the kind reactor and required by stores and sales, is reducing
only two being built in the changes to enhance safety its new-store openings this year
U.S., which hasn’t seen a new caused the price of the proj- to 55 from 100, a nearly billion- Cooking Meals of millennials’ monthly food go along with her dinner.
reactor built since the 1980s. ects to rise. In March, West- dollar drop in capital expendi- budget is spent on food pre- The rise of dual-income and
Both use a new Westinghouse inghouse filed for bankruptcy tures, and its chief financial offi- Becomes Lost Art pared outside the home, more single-parent households too
design intended to be simpler amid rising costs associated cer, Michael Schlotman, recently than any other generation, ac- busy to cook has also fueled
and easier to construct, but with both plants, a situation said that the company expects cording to a survey of 1,500 the trend.
they have experienced escalat- that imperiled its Japanese to continue to invest less in What are people eating? In- U.S. consumers last year by In today’s on-the-go culture
ing costs and delays. The move parent, Toshiba Corp. bricks and mortar. Smart & Final creasingly, food that doesn’t in- Acosta. in which people feel so pressed
to halt work on the South Car- Last week, Toshiba agreed plans to build 19 stores this year volve a lot of cooking. Millennials spent an average for time they rarely leave their
olina project will likely prompt to pay Scana and Santee Coo- after opening 37 in 2016. One of the biggest changes of $202 a month on food pre- desks for lunch anymore, con-
U.S. regulators and utility per $2.17 billion to cover its Wal-Mart Stores Inc. plans to that has rippled across the pared outside the home last sumers are increasingly grab-
chiefs to think twice before obligations, after reaching a build 55 supercenters and food industry is a loss of cook- year, up from an average of bing small bites.
proposing any more nuclear similar agreement with South- smaller-format stores in its ing skills, says food historian $159 in 2015. “What we’ve uncovered is
plants. ern. Still, Santee Cooper’s 2018 fiscal year, down from the Andrew F. Smith. This is de- Baby boomers, who don’t round-the-clock snacking,” Taco
The South Carolina power board voted early Monday af- 132 it opened in the 12-month spite the popularity of cooking often cook for large house- Bell Chief Executive Brian Nic-
plant was about to get even ternoon to stop work on the period ending in January. That shows and Instagram food pho- holds, also are turning to pre- col said in a recent interview.
more expensive. Santee Coo- South Carolina project, which has helped the nation’s largest tos. “Grocery shopping now is pared foods. Joan Shuman, a When they do cook meals,
per, a state-owned electric util- according to regulatory filings food seller by sales to spend buying prepared food,” he says. 68-year-old retired federal gov- they are making them with
ity that was a minority owner is about 35% complete. Shortly billions of dollars renovating its The trend is true across age ernment employee in Eaton- fewer ingredients rather than
in the plant, provided figures afterward, Scana said it would stores and offer more online-or- groups but is strongest among town, N.J., said she frequently filling up a cart of groceries.
that suggested the final costs file paperwork to abandon der pickup, a company spokes- millennials, the nation’s largest buys prepared salads from —Julie Jargon
to build the facility by 2024 construction, citing rising man said. demographic group. About 42% Wegmans Food Markets Inc. to and Heather Haddon
would swell to about $25.7 bil- costs, uncertainty around fed- There has been consolida-
lion. When first proposed in eral subsidies and Santee Coo- tion in the sector, too. Kroger
2008, it was projected to cost per’s pullout decision. and Supervalu Inc. have a 32-year-old unemployed soft- kets, with the sector posting azon. Amazon made a $13.7 bil-
$11.5 billion. Before Monday, —Jonathan Randles scooped up stores and whole- ware engineer who moved back more than $440 billion in sales lion bid for Whole Foods Mar-
most recent projections called contributed to this article. sale businesses after two Mid- in with her parents in St. Paul, last year, it was a 6% drop from ket Inc. in June, a move
west regional chains, Marsh Minn. Ms. Steinberg struggled 2015, according to Inmar Wil- analysts say could further accli-
Supermarkets LLC and Cen- to make healthy meals for her- lard Bishop Analytics. mate shoppers to the concept of
tral Grocers Inc., declared self while working. Meanwhile, convenience online grocery shopping.
bankruptcy this year. Grocery executives say they stores sold $73 billion worth of Supermarket chains operat-
But enduring changes in eat- have survived competition on prepared foods, beverages and ing in densely populated areas
ing and food-shopping habits thin margins in the past, and other food service last year, up where shoppers have more on-
toward cheaper and more con- that they conduct detailed stud- 72% from 2010, according to the line grocery options are particu-
venient options means consum- ies before building new stores. National Association of Conve- larly vulnerable to future consol-
ers will increasingly spread “We’re comfortable with the nience Stores. Two-thirds of idation, according to Barclays,
SOUTH CAROLINA ELECTRIC & GAS COMPANY

their dollars among a variety of
retailers. Food retailers are
also chasing a shrinking pool of
consumers. Not only is U.S.
population growth slowing, but
America’s largest demographic
groups—milliennials and baby
boomers—aren’t at their food-
buying peaks.
“I don’t have the energy to
work full-time and make my
Cost overruns hit the V.C. Summer Nuclear Station. own food,” said Leah Steinberg,
amount of square footage there
is [in] the market at the mo-
ment,” said Andrew Nadin, chief
marketing officer for Schnuck
Markets Inc., a St. Louis-based
chain of around 100 stores.
But consumers are increas-
ingly turning to nontraditional
options. While about 37% of
sales of consumable items such
as food and beverages still take
place at traditional supermar-
sales at dollar stores come from
food, beverages and other con-
sumables.
Brick-and-mortar supermar-
ket locations also compete for
consumers choosing to shop
online. For instance, Bill Gar-
rett, a 55-year-old home health-
care company officer from Wil-
mette, Ill., said he sliced about
one-third off his weekly grocery
bill of $150 by shopping on Am-
which said that 38 of the top 50
grocery markets in the U.S. are
too saturated by food retail per
capita or are on track to be so
by next year.
“Everybody should stop
growing,” said Barclays analyst
Karen Short. “It would make
the whole industry much
healthier.”
—Annie Gasparro
contributed to this article.
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THE WALL STREET JOURNAL.
Volkswagen Faced With New Legal Woes
Fraud charges are
recommended against
two company officials
over emissions scandal
BY LAURENCE NORMAN
BRUSSELS—German car
maker Volkswagen AG faces
fresh legal pressure over its
emissions-cheating scandal af-
ter European Union authorities
for the first time recom-
mended fraud charges against
two company officials.
The EU’s antifraud office,
known as OLAF, has been in-
vestigating since November
2015 whether Volkswagen
knowingly misused loans it
was given by the EU’s finance
Heineken Profits
As Europe Toasts
Low-Alcohol Beer
BY NICK KOSTOV
Heineken NV has lifted
sales in Europe—but the extra
beer isn’t all going to drinkers’
heads.
The Dutch brewer posted
higher profit for the first half
of 2017, fueled by strong sales
in Europe—including double-
digit revenue growth for no-
and low-alcohol drinks there.
The lift represents an early
vote of confidence after an in-
vestment push into the sector
by Heineken and its rivals.
Heineken joins the world’s
largest brewer, Anheuser-
Busch InBev NV, in reporting
better-than-expected results,
thanks in part to a rebounding
European beer market.
Last week, AB InBev said
sales grew by double digits
across Western Europe—a
market that has lagged behind
in recent years amid a stop-
and-start recovery after the
global financial crisis.
“It was a really good perfor-
mance of Europe, with the
growth coming from a number
of countries,” Chief Financial
Officer Laurence Debroux said.
The world’s second-largest
brewer by sales said profit
growth was strongest in Eu-
rope, as beer volumes rose in
France, Italy, Spain and Portu-
gal, helped by warmer
weather.
Global beer sales have been
hit in recent years by a shift
TAYLOR WEIDMAN/BLOOMBERG NEWS
Heineken and Anheuser-Busch InBev both beat earnings outlooks.
LABCORP
Chiltern Bought
For $1.2 Billion
Laboratory Corp. of America
Holdings struck a deal to buy
Chiltern International Ltd. for
$1.2 billion in a move to increase
its stake in the drug development
and contract-research industry.
LabCorp expects the acquisi-
tion to add to adjusted earnings
within one year and to earn back
its cost of capital in three years.
The Burlington, N.C.-based life-
science and technologies com-
pany said Chiltern will become
part of its Covance segment.
Chiltern, a London-based clini-
cal services company with a
headquarters in Wilmington, N.C.,
specializes in contract research
for pharmaceutical and medical-
device companies.
—Justina Vasquez
SANOFI
Drugmaker Lifts
Guidance for Year
French drugmaker Sanofi said
net profit fell in the second quar-
ter as it was hit by higher restruc-
* *
arm, the European Investment
Bank. The probe, which has
come to focus on two officials
at the company, began after
the EIB passed on its con-
cern about the loan.
At least one manager has
left the company and is under
investigation, according to
people familiar with the case.
The status of the other is un-
clear.
The allegations center on a
€400 million ($470 million)
loan the EIB granted Volks-
wagen in 2009 with the inten-
tion of promoting the com-
pany’s environmental perform-
ance, officials say. The loan
has since been repaid.
Volkswagen denied any
wrongdoing connected to the
EIB loan.
among drinkers toward wine
and spirits.
Consumers in the developed
world have also pivoted to
healthier drinking options,
putting added strain on the
market.
That has led the world’s big-
gest brewers to invest heavily
in a product that has been hit
or miss for decades: nonalco-
holic or lower-alcohol beer.
Heineken launched an alco-
hol-free version of its flagship
lager in May. The company
said results “already look
promising,” including in the
U.K. and France. Brewers earn
fatter profit margins from non-
alcoholic beer because of the
absence of excise tax and the
fact that these beers often sell
at a premium. But some prod-
ucts have been tough sells, in
large part because of consumer
complaints about taste.
Despite the upturn in Eu-
rope, Heineken said low- and
no-alcohol sales around the
world fell slightly.
Net profit rose 49% to €871
million ($1.02 billion) from the
2016 period, when Heineken
booked an impairment charge
on the company’s business in
the Democratic Republic of
Congo.
Revenue climbed 5.7% on an
organic basis to €10.48 billion.
Consolidated beer volumes
climbed 2.6% organically in the
period, beating analyst expec-
tations of a 1.7% rise.
turing costs, but the company
lifted earnings guidance for 2017.
On Monday, the drugmaker
said net profit declined 10% to
€1.04 billion ($1.22 billion) from
€1.16 billion a year earlier.
Business net income, the com-
pany’s term for adjusted income
excluding the impact of acquisi-
tions and divestments, increased
1% to €1.7 billion, lifted by Gen-
zyme, Sanofi’s biotech business.
That beat analysts’ expectations
of €1.6 billion, according to a poll
by data provider FactSet. Total
sales rose 6% to €8.66 billion.
Sanofi said it now expects
business earnings per share—ex-
cluding the impact of acquisi-
tions and divestments—to re-
main stable in 2017 at constant
exchange rates. It previously said
it expected business earnings
per share to be stable or fall by
as much as 3% in 2017.
—Noemie Bisserbe
ROYAL DUTCH SHELL
European Refinery
Shuts After Fire
Royal Dutch Shell is shutting
down Europe’s largest refinery
after a fire at a high-voltage
Tuesday, August 1, 2017 | B3
BUSINESS NEWS
“We reiterate our position cutor’s office in Braunschweig, vehicles,” OLAF said in a writ- companies into reporting their
that all funds received by Germany, to pursue legal ac- ten statement. activities.
Volkswagen from the European tion against officials, who According to people famil- OLAF can only investigate
Union were used for the desig- weren’t named. OLAF said it iar with the case, Volkswagen possible fraud among EU insti-
nated purpose; this also ap- has been in contact with Ger- officials omitted relevant in- tutions, companies and indi-
plies to loans granted in the man authorities throughout formation in response to ques- viduals but can’t prosecute. It
past by the European Invest- the case. tions by the EIB when the loan can recommend that national
ment Bank,” a spokesman said. The German prosecutors are was negotiated in 2008. Two authorities take legal action.
Volkswagen has been em- conducting several investiga- of the officials were aware at OLAF also took aim at the
broiled in lawsuits in the U.S. tions into former top Volks- the time of the work on so- EIB, a significant source of
in connection with its admis- wagen executives on suspicion called defeat devices, auxiliary funding for companies and
sion in September 2015 that it of fraud, centering on who control devices that can be governments inside and out of
had installed cheating devices knew what and when about used to circumvent emissions the 28-nation bloc. The EIB
in some 11 million vehicles the emissions cheating. standards. The agency believes has provided some €4.5 billion
world-wide. It is facing legal “OLAF finalized its investi- the withholding of that infor- in loans to Volkswagen in Eu-
settlements of as much as $25 gation into the possible misuse mation amounts to fraud un- rope since 1990, around one-
billion in the U.S. after a buy- of EU funds and European In- der German law. third of which was aimed at
back deal it struck last year. vestment Bank loans by the EU authorities have been technologies to improve the
German authorities are also Volkswagen Group, which kept largely on the sidelines in environmental performance of
conducting probes. could be linked to the produc- the emissions scandal. The Eu- cars, the bank said. OLAF said
The antifraud office said it tion of engines or devices im- ropean Commission, the EU’s the EIB should take “active
had made a judicial recom- plicated in the manipulation of executive arm, must rely on steps” to implement its own
mendation to the public prose- the real gas emissions level of national authorities to press antifraud policy.
Boeing Creates Avionics Unit to Boost Insourcing
JASON REDMOND/REUTERS
Boeing Co. is creating a new Boeing deeper into the territory ness had been established in Chicago-based Boeing already
unit to develop and build aircraft of big suppliers such as Rockwell consultation with suppliers. produces a range of aircraft elec-
avionics systems, expanding its Collins Inc. and Honeywell Inter- Shares pf Rockwell Collins fell tronics, and the new unit will
strategy of insourcing key tech- national Inc. following the recent 6.3%. A spokesman said it didn’t have an initial staff of 120, grow-
nology to cut costs. expansion of its services business. expect any impact from Boeing’s ing to an expected 600 by 2019.
The new Boeing Avionics unit (Above, Boeing’s 737 Max-9.) move in the “foreseeable future,” The company is pursuing
will expand the aerospace com- While Boeing Avionics will fo- and said they would continue to more vertical integration of its
pany’s existing offering of elec- cus on equipment for future work collaboratively. aircraft manufacturing business,
tronics systems, focusing on ar- products entering service over With most aerospace sector standing up internal operations
eas such as navigation and flight the next decade, it could also be shares down, Boeing shares con- in areas such as advanced mate-
controls for future commercial used to produce more advanced tinued the advance that has rials, propulsion systems and ac-
and military jets. parts for existing aircraft cur- lifted the stock by more than tuators, which move the flaps on
The move, announced in a rently supplied by third parties. 20% in July, buoyed by a firmer a jet’s wings.
memo to staff Monday, takes Boeing said the avionics busi- outlook for cash and profits. —Doug Cameron
National Air Cargo Chief Fights for Job
BY KATY STECH Aircraft provider Global contractors who do “not have Mr. Alf’s lawyers also told
BTG LLC, which won a $10 a satisfactory record of integ- Judge Kaplan that Global BTG
National Air Cargo Chief million judgment against Na- rity and business ethics,” officials, in their request for
Executive Officer Christopher tional Air Cargo in an aircraft- Global BTG officials said in new leadership, unfairly
Alf, who promised to commit leasing dispute, asked Judge their request. brought up a long-resolved
millions of dollars to get the Michael Kaplan to put a new In court papers filed Friday, dispute over inflated invoices
New York military-transport leader in charge, worried that Mr. Alf’s lawyers called the that the company submitted to
company out of bankruptcy, the company could lose its lawsuit’s allegations “disputed the Defense Department.
defended his leadership valuable U.S. Defense Depart- and unproven.” After the accusations arose
against calls for his removal. ment contracts. “The wholesale speculation in a 2005 lawsuit, the company
Lawyers for Mr. Alf argued The lawsuit against the that this extraneous lawsuit pleaded guilty to making a
in court papers filed Friday company and Mr. Alf’s wife, could adversely impact the false statement, according to
that the company has a sur- Lori, who is principal of a Flor- [company’s] business is unsup- court papers. The Air Force
vival plan and that its govern- ida ice-skating rink, accuses portable and beyond the realm ended a ban that stopped Mr.
ment-contracting business them of denying rink access to of relevance,” lawyers for Mr. Alf from contracting with the
isn’t at risk as a result of a dis- a young Iraqi figure skater. Alf said in court papers filed in U.S. government on 2009, en-
crimination lawsuit that is un- Government officials have the U.S. Bankruptcy Court in Buf- abling him to resume operat-
folding in Florida. power to cut dealings with falo, N.Y. ing National Air Cargo.
BUSINESS WATCH
electricity switch station.
The fire at the Pernis refinery
in Rotterdam, the Netherlands,
started late Saturday and was
extinguished by Sunday morning,
Shell spokesman Thijs van
Velzen said.
No one was injured, and the
cause of the fire is under investi-
BJORN REMMERSWAAL/AGENCE FRANCE-PRESSE/GETTY IMAGES
gation, Mr. van Velzen said. He
declined to comment on the fi-
nancial implications of the shut-
down.
The shutdown led to Shell
burning off excess gases at the
plant, a process known as flaring.
The move sent large flames into
the sky on Sunday.
—Associated Press
UNIFIRST
Finance Chief
Promoted to CEO
UniFirst Corp. said Monday The fire at the Pernis refinery in Rotterdam, the Netherlands, was extinguished on Sunday.
that it has promoted Chief Fi-
nancial Officer Steven Sintros controller, before becoming edge made him the right per- driven by growth in its laundry
to serve as chief executive af- chief financial officer in 2009. son for the job and that his and decontamination services.
ter longtime leader Ronald Cro- He came to the company after years working alongside Mr. Mr. Croatti, who died at 74
atti died unexpectedly in May. working in public accounting. Croatti will ensure a smooth from complications of pneumo-
Mr. Sintros, 43 years old, has Raymond Zemlin, lead direc- transition. nia, served as chief executive
worked for the uniform supplier tor of UniFirst’s board, said The Massachusetts-based for 26 years and had been with
since 2004, first as finance that Mr. Sintros’s strategic company beat earnings esti- the company for 50 years.
manager, then as a corporate thinking and financial knowl- mates in its past two quarters, —Cara Lombardo
B4 | Tuesday, August 1, 2017 * * THE WALL STREET JOURNAL.

TECHNOLOGY WSJ.com/Tech

Beijing Discreetly Backs Drive for Chips known as the China Inte- ests are tied to the business success for China memory
State fund’s support
grated Circuit Industry In- performance of this company.” chips,” Mr. Wei said.
aims to facilitate deals vestment Fund Co., it is The fund had pledged 59% Mr. Wei said the Big Fund
to help local companies known locally as “the Big of the total $20 billion by the co-invested with Intel in China
Fund.” end of 2016 and will complete chip designer Spreadtrum—
maintain an edge Detractors in the U.S. call it investments by 2019, Mr. Wei owned by Tsinghua Uni-
a slush fund, and American said. It will seek to recoup its group—and with Qualcomm on
BY EVA DOU trade groups warn its deep investments in 2024, although a joint venture with China’s
pockets will subsidize so many fund shareholders can vote to largest chip manufacturer
BEIJING—In China’s push to Chinese factories it will flood give projects a five-year exten- SMIC and a chip packaging

ADAM DEAN FOR THE WALL STREET JOURNAL

become a semiconductor the sector with overcapacity. sion, he said. factory in Jiangsu province.
power, a discreet government- Mr. Wei said at the fund’s The national fund has Intel didn’t comment on its
backed fund is playing an out- Beijing offices that he and his played a pivotal role in shap- $1.5 billion investment, other
size role. colleagues are a force to keep ing China’s chip industry over than to say that “Intel has a
The national chip fund has overcapacity in check by pro- the past three years. Most of long and successful history of
provided financing for deals moting consolidation. the country’s key chip projects growing its business in China
seen as key in helping Chinese Mr. Wei pointed to Qual- count it as a financier. in a responsible manner that
companies produce more pow- comm’s and Intel’s willingness The fund also brokered an complies with applicable U.S.
erful, cutting-edge semicon- to co-invest with the fund, de- important merger last year, re- national-security controls.”
ductors. U.S. chip makers Intel spite the criticisms from sulting in a domestic company Qualcomm declined to com-
Corp. and Qualcomm Inc. each Washington that China’s mas- that China hopes can become ment on the joint venture.
have participated in deals with sive spending push could dis- A worker at a Tsinghua Unigroup factory. The company has competitive in capital-inten- The fund’s executives agree
Chinese companies backed by tort the market. The American unveiled plans to build a $24 billion memory-chip factory. sive memory chips. Memory with Western critics that over-
the fund, said its Executive chip makers previously an- chips are a main focus for capacity is a danger, Mr. Wei
Vice President Wei Jun. nounced their China invest- for interfering with market hazy. Many executives of the China, as they are used in all said. But he sees it as a prob-
“We maintain frequent ex- ments but not the involvement forces, Beijing is shifting from chip fund, including its head smartphones and other gad- lem caused by provinces
changes with the U.S. side,” of the Big Fund. Intel and government subsidies to in- Ding Wenwu and Mr. Wei, are gets. Tsinghua Unigroup, one across China trying to jump on
Mr. Wei told The Wall Street Qualcomm declined to com- vestment funds that it says op- former officials of China’s of China’s strongest chip com- the bandwagon with their own
Journal in a rare interview. “It ment on their dealings with erate on market principles. technology ministry. Mr. Wei panies, took over the Wuhan funds and chip projects. He
doesn’t matter if it’s interna- the chip fund. The Big Fund is an experi- said the fund aims to generate city government-owned XMC, says he is doing his best to
tional or domestic [compa- Mr. Wei said he isn’t both- ment to try to invest govern- returns for investors, which then immediately announced keep such funds in check.
nies]. We will invest or partici- ered by the criticism from ment funds more efficiently, are primarily departments of plans to build China’s first “This industry requires
pate in the best development Washington. “In one sense, said Wei Shaojun, a govern- China’s central government. world-class memory-chip fac- companies to have large scale
projects in this field in China.” this means they are taking us ment adviser and head of Tsin- “State-owned investors are tory for $24 billion. to survive,” he said. “Small
Announced in 2014, the seriously,” he said. ghua University’s microelec- the majority, there’s no way Mr. Wei said XMC was too companies will surely die, so
$20 billion government-con- The chip fund is a new tronics department. around it,” Mr. Wei said. “But slow-moving as a local state- there’s no use investing in a
trolled fund is the centerpiece model for China’s state-driven But the line between gov- when I sit here, I’m no longer a owned enterprise. “With Tsin- lot of small companies.”
of Beijing’s plan to dominate economic development. After ernment officials and private- government employee, I’m a ghua Unigroup partnering with —Bob Davis
the chip industry. Formally being criticized by the West sector executives in China is company executive. My inter- it, we have a greater chance of contributed to this article.

Alphabet Project Sees Power in Molten Salt Obama

BY JACK NICAS Aide Joins
Google parent Alphabet Inc.
is pitching an idea to store
power from renewable energy
Board of
in tanks of molten salt and
cold liquid, an example of the
tech giant trying to marry its
Lyft Inc.
far-reaching ambitions with BY GREG BENSINGER
business demand.
Alphabet’s research lab, Ride-hailing startup Lyft
dubbed X, said Monday that it Inc. added its first indepen-
has developed plans to store dent board member, Valerie
electricity generated from so- Jarrett, a former top adviser
lar panels or wind turbines as of President Barack Obama.
thermal energy in hot salt and The appointment, effec-
cold liquids, such as antifreeze. tive Monday, brings Lyft’s
The lab is seeking partners in board to nine directors, who
the energy industry, including are mostly investors, but also
power-plant developers and include co-founders Logan
utilities, to build a prototype Green and John Zimmer. Mr.
to plug into the electrical grid. Green is chief executive and
Whether the project, called Mr. Zimmer is president.
Malta, ever comes to market Ms. Jarrett, 60 years old,
depends as much on a sound was one of Mr. Obama’s clos-
business model as it does on est confidantes and served in
science. Academics said the several roles during his eight-
technology is likely years away year administration, including
from market, if it ever makes as an assistant for intergov-
it. An X spokeswoman said it ernmental affairs and in the
could reach the market “in the Office of Urban Affairs. She
foreseeable future.” joined the board of money-
Malta is the latest example management firm Ariel Invest-
of Alphabet seeking to use new ments in March.
technologies to enter new in- Lyft’s move comes as rival
X

dustries, sometimes in surpris- Alphabet’s Malta project team work with computer simulations. The X research lab encourages engineers to try audacious projects. Uber Technologies Inc.’s board
ing ways. X first developed faces pressure to diversify its
self-driving cars almost a de- Chief Financial Officer Ruth batteries can be inefficient, for X says its system works by expensive components, includ- ranks after a workplace investi-
cade ago and is building deliv- Porat, who joined from Mor- example, though the price of sending electrical power from ing salt. gation conducted by the law
ery drones and high-altitude gan Stanley in 2015. The X storing power in batteries has solar panels or wind turbines “The devil is in the details firm of former U.S. Attorney
balloons that beam internet spokeswoman said in an email been falling rapidly in recent through a heat pump that con- in how you manufacture it and General Eric Holder in part
connections to the ground be- that “it’s safe to say that X years. Water can be stored be- verts the power to thermal en- install it at low costs,” said called for the company to add
low. X encourages its engi- isn’t going to start building hind dams, releasing it ergy, splitting it between hot Massachusetts Institute of new independent directors, in-
neers to try audacious projects power plants!” through generators when and cold, which is then stored Technology professor Jessika cluding at the chairman level. It
and, as a result, far more fail Storing electricity is an area needed—but this doesn’t work in tanks of molten salt or a Trancik, who studies storing recently named Wan Ling Mar-
than succeed. of intense interest for the en- well in warm climates. X says cold liquid, such as antifreeze. electricity from renewable tello, a Nestlé SA executive, as
The lab has also shown in- ergy industry. In California, so- Malta, its thermal-energy sys- The thermal energy can be sources. an independent director. Uber
terest in energy. One X team is lar panels sometimes generate tem in salt, can be durable, stored for days or weeks de- Other academics said new de- is scrambling to fill several top
building wind turbines that more power than the grid can flexible and cheap. pending on the tanks’ insula- mand for energy storage may executive roles, including a new
use drones attached to cables handle. In Texas, overnight Malta builds on a theoreti- tion. To return the energy to mean the idea could now work. CEO and chiefs of operations,
as their propellers, and X re- winds sometimes drive power cal system designed by Robert the grid, the hot and cold ther- “Molten salts aren’t new, and finance and marketing.
cently spun off a firm called prices down below zero—so Laughlin, a Stanford University mal energy is recombined, cre- thermal storage isn’t new. Ms. Jarrett is the second
Dandelion that uses geother- that companies must pay for the professor who won the 1998 ating a stream of wind that What’s new about this is there’s woman on Lyft’s board, along-
mal energy—via underground right to put power on the grid. Nobel Prize in physics for sep- spins a turbine, re-creating the a big brand-name backer behind side Ann Miura-Ko, a partner
pipes—to heat and cool homes. Finding a cost-effective way to arate research. X said fewer electrical energy. it,” said mechanical-engineering at venture-capital firm Flood-
Dandelion says its product is store solar and wind power dur- than 10 researchers have been Academics agreed that X’s professor Michael Webber, dep- gate. The board includes An-
already available in New York. ing times of surplus and deploy working on it for more than system makes technical sense, uty director of the Energy Insti- dreessen Horowitz’s Ben Horo-
X’s plan to partner with it when needed is the holy grail two years. Several other firms but the financials will deter- tute at the University of Texas at witz; Icahn Capital’s
other firms to bring Malta to in the power industry. are pursuing similar technol- mine its success. X declined to Austin. Jonathan Christodoro; Ra-
market reflects new financial Existing storage solutions ogy, including a solar-power detail the expected costs of the —Russell Gold kuten Inc. CEO Hiroshi Miki-
discipline at Alphabet under have downsides. Lithium-ion plant in Morocco. system but said it relies on in- contributed to this article. tani; former Trulia Inc. finance
chief Sean Aggarwal; and Gen-
eral Motors Co. President Dan
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PUBLIC NOTICES NEW DELHI—SoftBank
Group Corp.’s attempt to
merge India’s two biggest


GM invested about $500
million in Lyft last year and is
working with the San Fran-
SoftBank said it respects invested $627 million in cisco company on developing
Snapdeal’s decision and looks Snapdeal, in May launched self-driving vehicles.
forward to “remaining in- the world’s biggest technol- Uber also has two female
vested in the vibrant Indian e- ogy fund, a nearly $100 bil- directors on its eight-member
commerce space.” lion vehicle to invest in board, including media mag-
 
      


  
  
  
 
LEGAL homegrown e-commerce
companies to compete with
A Flipkart spokesman de-
clined to comment.
emerging fields and promis-
ing markets.
nate Arianna Huffington, her-
self an investor.

NOTICES
Amazon.com here hit a road- Snapdeal last week sold its U.S. companies such as
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( ("  "   )15 &( ( ) )+ ( © 2017 Dow Jones & Company, Inc. dent path and is terminating vertising and technological lyst at research firm Forrester.
" ('  2  &  "  " %"
8 5+ 9 

2  > (1? ' @
All Rights Reserved. all strategic discussions as a know-how. —Mayumi Negishi Valerie Jarrett is Lyft’s first
result.” SoftBank, which in 2014 contributed to this article. independent board member.
THE WALL STREET JOURNAL. * * * * * * Tuesday, August 1, 2017 | B5

BUSINESS NEWS

Family Cars Yearn to Be Sexy Again GM Hires

Famed Jeep
Sedan designers strive to lure buyers with vehicles inspired by sprinters and ballerinas
BY JOHN D. STOLL
Hackers
AND ADRIENNE ROBERTS BY MIKE COLIAS

A yearslong slump in sedan Chris Valasek and Charlie

sales has forced designers to Miller made names for them-
seek inspiration from some selves a couple of years ago
(LEFT) LUCAS JACKSON/REUTERS, (RIGHT) ATTILA BALAZS/EPA

unorthodox sources to tempt when they remotely hacked

buyers away from beefy pick- into a Jeep made by Fiat
ups, SUVs and crossovers. Chrysler Automobiles NV.
For Ian Cartabiano, who Now they are going to work
was charged with revamping for General Motors Co.
Toyota Motor Corp.’s iconic Messrs. Miller and Valasek
Camry sedan, ballet dancers became well known in auto-
and catamarans sparked some motive circles when they suc-
ideas. The car’s pronounced cessfully hacked into the wire-
front end with its deep grill, less controls of a moving Jeep
for instance, includes ele- Cherokee from a laptop many
ments derived from the view miles away, manipulating the
of an oncoming twin-hulled climate-control settings, ste-
sailboat. reo and even disabling the
“I didn’t want to do a va- transmission. Fiat Chrysler
nilla car,” said Mr. Cartabiano, Automobiles, Jeep’s owner, is-
who will see the result of Volvo’s S90 was created with a lion in mind. The vehicle’s new engineering platform allowed for a lower, wider and longer profile. sued a recall days later to fix a
work sketched out four years potential cybersecurity flaw
ago when the cars hit the new S90 was inspired by a Bob Boniface, Buick design di- Stringent requirements for ever, panned a redesigned So- on 1.4 million vehicles.
showrooms this fall. “We lion. Hyundai Motor Co.’s rector at General Motors Co., hood measurements and nata for 2015, calling it overly The Jeep hack was a water-
wanted people to say, ‘Man! I new Sonata was modeled af- said engineers are tweaking other safety regulations force conservative and boring. shed moment for the auto in-
really want to get into this ter a sprinter in the blocks. everything from the way a designers to abide by strict Edward Lee, a designer in dustry, raising questions about
Camry,’ ” he said. Honda Motor Co. flew a 3-D trunk works to the way a rules, Mr. Boniface said. And, Hyundai’s California studio, the safety of internet-con-
Once the dominant body model of the 2018 Accord headlight functions to boost sedan design hasn’t until re- was charged with injecting a nected vehicles and how auto
style on American roads, pas- from Japan to Los Angeles to appeal. cently been an area that en- “wow factor” into the 2018 makers would combat poten-
senger cars now make up 38% get the “correct light” to “The days of offering a courages risk-taking. version. He said he modeled tial threats.
of U.S. vehicle sales, down show “sharp edges and con- bread-and-butter car are long Mr. Cartabiano, the de- the profile of the car from a GM, Chrysler and other
from nearly half in 2014. trasts generated from the gone,” he said during an signer of the 2018 Camry, runner crouching at the start- auto makers hired hacking
Even though auto makers sculpted bulging surfaces,” event where GM showed off said recent sedans haven’t ing line before a race. To add consultants and beefed up
make most of their money on said chief exterior designer an updated version of the elicited enough passion. He heft to the grille, he also in- controls to prevent data
thirsty pickups and sport-util- Tetsuji Morikawa. said crossover vehicles—typi- corporated cues from a cata- breaches.
ity vehicles, they can’t give “They want people to give cally roomy and bulbous wag- maran and pulled in imagery GM’s self-driving-vehicle
up on sedans. The companies the sedan at least one look ons based on the architecture from the steelmaking process. subsidiary, Cruise Automation,
have billions of dollars in pro- before moving on to a more
Most revenue comes of a car—are the hot body Swedish designers several has hired the cybersecurity ex-
duction capacity devoted to popular body style,” AutoPa- from SUVs, pickups style, but they don’t have the years ago went to work perts from two major ride-
the body style, with lengthy cific Inc. product analyst Dave same potential as sedans sculpting the 2017 Volvo S90, sharing firms, the latest salvo
production cycles that make Sullivan said. “Whatever it
but companies can’t when it comes to design. a large sedan that had gone in a war for tech talent be-
short-term adjustments im- takes to get you in the seat.” give up on sedans. “There’s something sensual several years without a major tween Silicon Valley and De-
possible. Plus, gasoline prices Sedan designers are get- and heart-tugging about a freshening. Tisha Johnson, a troit.
might rise, and the smaller ting their first look at how sleek and sexy car that can’t senior director of design at Mr. Valasek was working as
vehicles help auto makers their creations fared, with be provided by a crossover,” Volvo, said the company’s Uber Technologies Inc.’s top
meet U.S. federal emissions auto magazines publishing Buick Regal. The car’s front he said. This is why Toyota new engineering platform for cybersecurity expert, and Mr.
mandates. stories that call the Camry end uses a “hook light” and a turned to a ballerina on a large vehicles allowed a much Miller had worked at Uber be-
All this has prompted car “radical” and the Sonata “ag- restyled “winged grille” to beam: “The idea was the “lower, wider, longer” profile. fore leaving in March to join
companies to overhaul three gressive.” The cars hit dealer breathe new life into the movement of a dancer was “This guy here doesn’t Didi Chuxing, China’s largest
dozen midsize and large cars lots in coming months, and brand’s “aeronautical design beautiful and rhythmic…the have to do anything flamboy- ride-hailing firm.
for the 2017-2019 model initial sales numbers will sig- language.” beam represented strength.” ant to get people to under- GM is looking to move into
years, and to look further nal whether the designs suc- Designers in 2017 face Hyundai broke the mold on stand what he’s about,” Ms. a leading position on autono-
afield for design cues to cessfully rekindled interest. challenges that stylists could exteriors early in this decade Johnson said, pointing to an mous vehicles that are con-
boost curb appeal. Auto makers aren’t only fo- largely ignore during the se- with an edgy and aggressive- image of a lion at a seminar nected to the internet and can
Volvo Car Corp. says its cused on sexier sheet metal. dan’s golden age. looking Sonata. Critics, how- about the new car last year. be updated over the air.

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On Airline Seat Size

BUSINESS OPPORTUNITIES BUSINESS OPPORTUNITIES

BY SUSAN CAREY pass new rules in 2015, noting

that economy-class seats are
A federal appeals court 17 inches wide on average,
gave a travelers’ rights group down from 18.5 inches in the
new hope that the Federal Avi- early 2000s.
ation Administration could be The FAA denied that peti-
made to address its concerns tion in 2016, saying its tests of
about shrinking airline seat emergency evacuations from
size and legroom. the smaller seats found them
But the U.S. Court of Ap- to be safe. The agency also re-
peals for the District of Co- jected concerns about the con-
lumbia Circuit on Friday de- nection between smaller seats
clined to order the FAA to and deep-vein thrombosis.
review rules on seat size and Writing for a three-judge
how they affect the safety or panel, Judge Patricia Millett
speed of emergency evacua- criticized the FAA for with-
tions. It also rejected a chal- holding data from those tests
lenge to the agency to regulate and for imprecise methods
matters of physical comfort that raised questions about its
and routine health. refusal to pass new seat rules.
Passenger-rights groups Judge Millett ordered the FAA
have complained in recent to “adequately address the pe-
years that airlines aren’t ad- tition and the emergency
justing their seats to keep up egress concerns it raises.”
with the growing height, “We are studying the ruling
weight and girth of American carefully and any potential ac-
fliers. FlyersRights.org, a non- tions we make take to address
profit passenger advocacy the court’s findings,” the FAA
group, petitioned the FAA to said on Monday.

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B6 | Tuesday, August 1, 2017 THE WALL STREET JOURNAL.

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THE WALL STREET JOURNAL. Tuesday, August 1, 2017 | B7

MARKETS DIGEST
EQUITIES

Dow Jones Industrial Average S&P 500 Index Nasdaq Composite Index
Last Year ago Last Year ago Last Year ago
21891.12 s 60.81, or 0.28% Trailing P/E ratio 19.88 20.11 2470.30 t 1.80, or 0.07% Trailing P/E ratio 23.94 25.03 6348.12 t 26.55, or 0.42% Trailing P/E ratio * 25.75 24.20
High, low, open and close for each P/E estimate * 18.42 17.87 High, low, open and close for each P/E estimate * 18.94 18.42 High, low, open and close for each P/E estimate * 21.45 19.92
trading day of the past three months. Dividend yield 2.29 2.52 trading day of the past three months. Dividend yield 1.97 2.11 trading day of the past three months. Dividend yield 1.10 1.24
All-time high 21891.12, 07/31/17 All-time high: 2477.83, 07/26/17 All-time high: 6422.75, 07/26/17

Current divisor 0.14602128057775

22100 2480 6500
Session high
DOWN UP
21750 2450 6380
t

Session open Close

Close Open
t

21400 2420 6260

Session low

21050 2390 6140

20700 2360 6020

65-day moving average
65-day moving average
20350 2330 65-day moving average 5900

Bars measure the point change from session's open

20000 2300 5780
Apr. May June July Apr. May June July Apr. May June July
Weekly P/E data based on as-reported earnings from Birinyi Associates Inc.

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

Latest 52-Week % chg Most-active and biggest movers among NYSE, NYSE Arca, NYSE 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*1,011,772,670 9,246,426
Industrial Average 21929.80 21861.71 21891.12 60.81 0.28 21891.12 17888.28 18.9 10.8 9.7 share price of $2 and minimum after-hours volume of 5,000 shares. Adv. volume* 541,114,048 3,296,130
Transportation Avg 9255.61 9179.28 9182.78 -44.29 -0.48 9742.76 7648.44 17.5 1.5 4.1 Most-active issues in late trading Decl. volume* 441,406,293 4,200,784
Utility Average 728.03 722.29 726.48 2.42 0.33 737.51 625.44 2.2 10.1 10.4 Volume After Hours Issues traded 3,083 332
Company Symbol (000) Last Net chg % chg High Low Advances 1,584 139
Total Stock Market 25654.18 25543.00 25572.15 -23.38 -0.09 25692.25 21514.15 14.0 9.9 8.3
SPDR S&P 500 SPY 22,900.9 246.76 -0.01 -0.004 247.38 246.72 Declines 1,400 162
Barron's 400 654.39 650.48 652.78 0.37 0.06 661.93 521.59 19.3 8.5 8.0
Ford Motor F 5,103.2 11.21 -0.01 -0.09 11.22 11.18 Unchanged 99 31
Nasdaq Stock Market VanEck Vectors Gold Miner GDX 4,979.2 22.87 0.01 0.04 22.94 22.84 New highs 132 7
Nasdaq Composite 6396.59 6338.79 6348.12 -26.55 -0.42 6422.75 5046.37 22.5 17.9 13.3 iShares MSCI Emg Markets EEM 4,768.5 43.80 … unch. 43.85 43.75 New lows 23 2
5932.37 5871.79 Closing tick 69 31
Nasdaq 100 5880.33 -28.59 -0.48 5950.73 4660.46 23.6 20.9 14.7 Intel INTC 4,080.7 35.38 -0.09 -0.25 35.51 35.38
Closing Arms† 1.03 1.03
Host Hotels Resorts HST 4,006.7 18.66 … unch. 18.66 18.65
Standard & Poor's Block trades* 6,842 145
-0.07
Mattel Inc MAT 3,738.8 20.01 -0.01 -0.05 20.05 19.72
500 Index 2477.96 2468.53 2470.30 -1.80 2477.83 2085.18 13.8 10.3 8.6 Nasdaq NYSE Arca
iShares iBoxx $ HY Cp Bd HYG 3,324.8 88.91 … unch. 88.92 88.85
MidCap 400 1766.08 1755.43 1760.68 -1.66 -0.09 1791.93 1476.68 13.2 6.0 8.7 Total volume*1,865,751,385 215,980,166
SmallCap 600 867.10 860.02 863.62 -1.38 -0.16 876.06 703.64 16.2 3.1 10.2 Percentage gainers… Adv. volume* 715,631,229 109,462,762
Decl. volume*1,118,850,921 101,956,805
Other Indexes Halozyme Therapeutics HALO 11.5 14.33 1.65 13.01 14.33 12.68
Issues traded 3,031 1,329
Russell 2000 1432.46 1420.66 1425.14 -4.12 -0.29 1450.39 1156.89 16.9 5.0 8.4 Proteostasis Therapeutics PTI 5.3 3.10 0.26 9.15 4.25 2.76
Advances 1,310 750
NYSE Composite 11989.53 11950.58 11967.67 12.98 0.11 11967.67 10289.35 11.5 8.2 3.7 Cognex CGNX 229.1 103.50 8.44 8.88 104.50 95.06 Declines 1,537 536
Value Line 529.79 526.18 527.58 -1.08 -0.20 533.62 455.65 10.0 4.2 3.0 Texas Roadhouse TXRH 119.9 50.75 3.45 7.29 51.92 47.30 Unchanged 184 43
NYSE Arca Biotech 3984.03 3930.60 3931.63 -56.62 -1.42 4075.95 2834.14 13.3 27.9 12.8
Allison Transmission ALSN 263.8 40.48 2.68 7.09 41.55 37.80 New highs 89 99
New lows 64 20
NYSE Arca Pharma 534.35 531.89 531.89 0.36 0.07 554.66 463.78 -4.1 10.5 1.5 ...And losers
Closing tick 288 39
KBW Bank 96.47 95.47 95.99 0.77 0.80 99.33 66.90 42.3 4.6 11.0 Smart Sand SND 60.1 6.03 -0.55 -8.36 6.58 6.00 Closing Arms† 1.33 1.27
PHLX§ Gold/Silver 86.02 84.94 85.32 -0.24 -0.28 112.86 73.03 -23.6 8.2 -4.8 U.S. Silica Holdings SLCA 258.2 26.95 -2.18 -7.48 30.50 25.40 Block trades* 7,887 1,260
PHLX§ Oil Service 135.44 132.16 134.36 -0.52 -0.38 192.66 126.75 -13.8 -26.9 -22.4 Nautilus NLS 5.7 16.45 -1.15 -6.53 17.60 16.00 * Primary market NYSE, NYSE American NYSE Arca only.
PHLX§ Semiconductor 1099.37 1081.91 1085.15 -7.84 -0.72 1138.25 755.73 41.3 19.7 21.3 Fairmount Santrol Hldgs FMSA 42.4 2.74 -0.18 -6.16 2.92 2.50 †(TRIN) A comparison of the number of advancing and declining
10.84 10.23 -0.03 22.51 9.36 -17.5 -26.9 -15.4 issues with the volume of shares rising and falling. An
CBOE Volatility 10.26 -0.29 Amkor Technology AMKR 167.1 10.00 -0.37 -3.57 10.37 8.33 Arms of less than 1 indicates buying demand; above 1

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

International Stock Indexes Percentage Gainers... Percentage Losers

Latest YTD
Region/Country Index Close Net chg % chg % chg Latest Session 52-Week Latest Session 52-Week
Company Symbol Close Net chg % chg High Low % chg Company Symbol Close Net chg % chg High Low % chg
World The Global Dow 2853.52 5.30 0.19 12.7 Dynavax Technologies DVAX 15.85 6.60 71.35 17.50 3.20 -0.7 InVivo Therapeutics Hldgs NVIV 1.80 -0.65 -26.53 7.94 1.65 -71.7
The Global Dow Euro 2278.94 –4.09 –0.18 0.8 CDI Corp CDI 8.25 2.05 33.06 9.65 4.84 31.6 Hertz Global Holdings HTZ 13.67 -3.67 -21.16 52.27 8.52 -70.7
DJ Global Index 369.15 0.26 0.07 13.2 Moleculin Biotech MBRX 2.99 0.58 24.07 7.04 0.71 -57.3 GlassBridge Enterprises GLA 2.46 -0.55 -18.27 12.60 2.44 -76.3
World DJ Global ex U.S. 249.27 0.55 0.22 16.5 Strongbridge Biopharma SBBP 7.95 1.15 16.91 8.25 2.00 89.3 Precipio PRPO 8.20 -1.63 -16.58 28.16 4.00 -93.5
Americas DJ Americas 594.74 –0.59 –0.10 10.1 Yield10 Bioscience YTEN 3.00 0.38 14.50 9.30 2.52 ... Immunogen IMGN 5.94 -1.02 -14.66 8.04 1.51 100.7
Brazil Sao Paulo Bovespa 65920.36 423.23 0.65 9.5 Myomo MYO 9.95 1.15 13.07 23.20 6.77 ... Navigant Consulting NCI 16.93 -2.85 -14.41 27.86 16.64 -13.5
Canada S&P/TSX Comp 15143.87 15.22 0.10 –0.9 Alliance Holdings GP AHGP 28.63 3.21 12.63 32.70 22.55 14.2 Pulse Biosciences PLSE 19.43 -3.10 -13.76 39.50 4.35 321.5
Mexico IPC All-Share 51011.87 –201.73 –0.39 11.8 Novan NOVN 5.98 0.67 12.62 30.90 3.52 ... Clovis Oncology CLVS 84.81 -13.21 -13.48 99.45 13.98 463.9
Chile Santiago IPSA 3847.92 –8.69 –0.23 19.4 VelocityShares 3x DGAZ 28.85 3.09 12.00 47.55 13.50 -16.6 Intercept Pharmaceuticals ICPT 117.13 -17.90 -13.26 177.93 96.63 -31.0
Sohu com SOHU 56.83 5.98 11.76 58.72 32.60 49.9 VelocityShares 3x Lg Nat UGAZ 10.87 -1.63 -13.04 54.89 10.47 -71.8
Europe Stoxx Europe 600 377.85 –0.49 –0.13 4.5
Euro zone Euro Stoxx 374.22 –1.51 –0.40 6.8 Celsius Holdings CELH 3.92 0.39 11.05 4.78 1.83 70.4 Ominto OMNT 5.62 -0.74 -11.64 23.05 2.30 87.3
Belgium Bel-20 3942.46 –2.10 –0.05 9.3 Key Technology KTEC 14.30 1.31 10.08 14.95 8.92 46.7 Electro-Sensors ELSE 3.20 -0.42 -11.58 4.60 3.00 -12.1
France CAC 40 5093.77 –37.62 –0.73 4.8 OncoCyte OCX 3.95 0.35 9.72 7.95 3.40 7.6 Yuma Energy YUMA 1.87 -0.23 -10.95 5.50 0.05 -65.4
Germany DAX 12118.25 –44.45 –0.37 5.5 Internet Gold-Golden IGLD 6.65 0.58 9.57 14.43 5.86 -53.9 Cellular Biomedicine Grp CBMG 8.60 -1.05 -10.88 15.68 5.05 -42.0
1447.14 –0.17 –1.6 Socket Mobile SCKT 4.25 0.37 9.54 4.90 2.39 45.5 Zynerba Pharmaceuticals ZYNE 14.10 -1.72 -10.87 25.95 8.25 53.3
Israel Tel Aviv –2.48
Italy FTSE MIB 21486.91 56.55 0.26 11.7
Netherlands AEX 525.44 –0.09 –0.02 8.7 Most Active Stocks Volume Movers Ranked by change from 65-day average*
Spain IBEX 35 10502.20 –33.90 –0.32 12.3
Volume % chg from Latest Session 52-Week Volume % chg from Latest Session 52-Week
Sweden SX All Share 559.45 –2.24 –0.40 4.7 Company Symbol (000) 65-day avg Close % chg High Low Company Symbol (000) 65-day avg Close % chg High Low
Switzerland Swiss Market 9055.00 35.69 0.40 10.2
Advanced Micro Devices AMD 68,094 -21.6 13.61 -2.44 15.65 5.66 CDI Corp CDI 2,118 6131 8.25 33.06 9.65 4.84
U.K. FTSE 100 7372.00 3.63 0.05 3.2
Bank of America BAC 60,663 -19.2 24.12 0.37 25.80 14.09 Novan NOVN 2,710 2694 5.98 12.62 30.90 3.52
Asia-Pacific DJ Asia-Pacific TSM 1680.62 5.86 0.35 18.1 Delcath Systems DCTH 56,815 -36.2 0.10 -12.73 6.49 0.02 iShares Micro-Cap ETF IWC 631 1949 88.15 -0.46 90.34 71.17
Australia S&P/ASX 200 5720.60 17.80 0.31 1.0 iShares MSCI Emg Markets EEM 56,065 7.5 43.80 0.11 44.16 33.94 WisdomTree Emerg CurrencyCEW 116 1725 18.97 0.26 18.97 17.22
China Shanghai Composite 3273.03 19.79 0.61 5.5 Snap SNAP 48,788 157.6 13.67 -1.01 29.44 13.10 Scripps Networks Inter A SNI 27,721 1205 87.41 0.58 88.45 59.32
Hong Kong Hang Seng 27323.99 344.60 1.28 24.2 SPDR S&P 500 SPY 42,862 -33.4 246.77 -0.06 248.00 208.38 Dynavax Technologies DVAX 23,012 1183 15.85 71.35 17.50 3.20
India S&P BSE Sensex 32514.94 205.06 0.63 22.1 Finl Select Sector SPDR XLF 42,434 -37.3 25.09 0.72 25.32 18.94 Voyager Therapeutics VYGR 1,169 1122 8.24 -9.35 18.25 8.22
Japan Nikkei Stock Avg 19925.18 –34.66 –0.17 4.2 iPath S&P 500 VIX ST Fut VXX 40,542 -34.8 11.23 -0.53 42.84 10.91 Enzymotec ENZY 216 1058 8.45 4.97 9.32 5.20
Singapore Straits Times 3329.52 –1.23 –0.04 15.6 Micron Technology MU 39,851 39.6 28.12 -3.96 32.96 13.02 Sohu com SOHU 3,335 1041 56.83 11.76 58.72 32.60
South Korea Kospi 2402.71 1.72 0.07 18.6 Vale ADR VALE 36,940 31.7 10.03 3.72 11.70 4.86 Lehman 7-10 Year Treas PST 165 1008 21.33 0.05 23.25 19.87
Taiwan Weighted 10427.33 4.28 0.04 12.7 * Volumes of 100,000 shares or more are rounded to the nearest thousand * Common stocks priced at $5 a share or more with an average volume over 65 trading days of at least
Sources: SIX Financial Information; WSJ Market Data Group 5,000 shares =Has traded fewer than 65 days

CREDIT MARKETS & CURRENCIES Currencies

U.S.-dollar foreign-exchange rates in late New York trading
Consumer Rates and Returns to Investor Benchmark
Treasury Yields
yield curve Forex Race US$vs, US$vs,
andtoRates
Yield maturity of current bills, Yen, euro vs. dollar; dollar vs. Country/currency
Mon YTDchg
in US$ per US$ (%) Country/currency
Mon YTDchg
in US$ per US$ (%)
U.S. consumer rates Selected rates notes and bonds major U.S. trading partners
Americas Thailand baht .03003 33.300 –7.0
A consumer rate against its 30-year mortgage, Rate Vietnam dong .00004400 22727 –0.2
5.00% Argentina peso .0567 17.6447 11.2
benchmark over the past year 10% Brazil real .3200 3.1253 –4.0 Europe
Bankrate.com avg†: 3.95% WSJ Dollar index
4.00 s Canada dollar .8013 1.2480 –7.2 Czech Rep. koruna .04540 22.026 –14.3
Fortune Financial, Inc. 3.63% 5
Chile peso .001540 649.50 –3.0 Denmark krone .1592 6.2806 –11.2
4.00% Englewood, CO 303-706-0920 .0003350 2985.00 –0.6 1.1843 .8444 –11.2
t 3.00 0 Colombia peso Euro area euro
30-year fixed-rate Supreme Lending 3.72% Euro
s Ecuador US dollar 1 1 unch Hungary forint .003891 257.00 –12.7
3.00 2.00 Mexico peso .0562 17.8023 –14.1 Iceland krona .009696 103.14 –8.7
mortgage Bellevue, WA 206-963-4788 –5
Monday Peru new sol .3086 3.241 –3.4 Norway krone .1272 7.8636 –9.0
3.75% t Yen
s

t Accelin Loans LLC 1.00

t

2.00 –10 Uruguay peso .03535 28.2900 –3.6 Poland zloty .2782 3.5940 –14.2
10-year Treasury Bend, OR 541-410-6086 One year ago Venezuela b. fuerte .098582 10.1439 1.5 Russia ruble .01673 59.765 –2.5
note yield 1.00 0.00 –15
EverBank 3.75% Asia-Pacific Sweden krona .1239 8.0680 –11.4
1 3 6 1 2 3 5 710 30 2016 2017 Switzerland franc 1.0343 .9668 –5.1
Jacksonville, FL 866-343-0563 Australian dollar .8004 1.2494 –10.0
0.00 month(s) years Turkey lira .2841 3.5195 –0.1
Orange Countys Credit Union 3.75% China yuan .1487 6.7266 –3.1
A S ON D J FMAM J J maturity Ukraine hryvnia .0387 25.8400 –4.6
Hong Kong dollar .1280 7.8103 0.7
2016 2017 Santa Ana, CA 714-755-5900 UK pound 1.3215 .7567 –6.6
India rupee .01558 64.194 –5.5
Sources: Ryan ALM; Tullett Prebon; WSJ Market Data Group Middle East/Africa
Indonesia rupiah .0000750 13325 –1.5
Yield/Rate (%) 52-Week Range (%) 3-yr chg Japan yen .009069 110.26 –5.8 Bahrain dinar 2.6511 .3772 0.01
Interest rate Last (l)Week ago Low 0 2 4 6 8 High (pct pts)
Kazakhstan tenge .003035 329.49 –1.3 Egypt pound .0559 17.9020 –1.3
Federal-funds rate target 1.00-1.25 1.00-1.25 0.25 l 1.25 1.00 Corporate Borrowing Rates and Yields Macau pataca .1247 8.0186 1.3 Israel shekel .2808 3.5610 –7.5
Malaysia ringgit .2336 4.2815 –4.6 Kuwait dinar 3.3135 .3018 –1.3
Prime rate* 4.25 4.25 3.50 l 4.25 1.00 Yield (%) 52-Week Total Return (%)
Bond total return index Close Last Week ago High Low 52-wk 3-yr New Zealand dollar .7515 1.3307 –7.9 Oman sul rial 2.5971 .3850 0.02
Libor, 3-month 1.31 1.31 0.76 l 1.32 1.07 Pakistan rupee .00949 105.400 1.0 Qatar rial .2769 3.612 –0.8
Money market, annual yield 0.29 0.32 0.23 l 0.36 -0.11 Treasury, Ryan ALM 1456.549 1.998 1.976 2.237 1.249 –3.329 2.687 Philippines peso .0198 50.433 1.7 Saudi Arabia riyal .2666 3.7503 –0.01
Five-year CD, annual yield 1.44 1.44 1.17 l 1.44 0.05 10-yr Treasury, Ryan ALM 1733.653 2.292 2.253 2.609 1.499 –0.417 2.805 Singapore dollar .7381 1.3549 –6.4 South Africa rand .0759 13.1832 –3.7
30-year mortgage, fixed† 3.95 3.95 3.44 l 4.33 -0.32 South Korea won .0008933 1119.40 –7.3
DJ Corporate 376.945 2.948 2.944 3.390 2.488 1.210 4.142 Close Net Chg % Chg YTD%Chg
Sri Lanka rupee .0065125 153.55 3.4
15-year mortgage, fixed† 3.14 3.14 2.70 l 3.50 -0.24 Aggregate, Barclays Capital 1929.800 2.510 2.500 2.790 1.890 –0.525 2.711 Taiwan dollar .03310 30.215 –6.9 WSJ Dollar Index 85.75 –0.35–0.40 –7.73
Jumbo mortgages, $424,100-plus† 4.33 4.31 4.02 l 4.88 -0.51 High Yield 100, Merrill Lynch n.a. n.a. 5.012 n.a. n.a. n.a. n.a. Sources: Tullett Prebon, WSJ Market Data Group
Five-year adj mortgage (ARM)† 3.33 3.32 3.07 l 4.03 -0.25
Fixed-Rate MBS, Barclays 1975.590 2.830 2.800 3.120 1.990 0.152 2.528
New-car loan, 48-month 2.99 3.05 2.87 l 3.36 -0.16
HELOC, $30,000 5.22 5.19 4.57 l 5.22 0.69
Muni Master, Merrill n.a. n.a. 1.844 n.a. n.a. n.a. n.a. COMMODITIES
Bankrate.com rates based on survey of over 4,800 online banks. *Base rate posted by 70% of the nation's largest EMBI Global, J.P. Morgan n.a. n.a. 5.545 n.a. n.a. n.a. n.a. Commodities Monday 52-Week YTD
banks.† Excludes closing costs. Pricing trends on someClose
raw materials, or commodities
Sources: SIX Financial Information; WSJ Market Data Group; Bankrate.com Sources: J.P. Morgan; Ryan ALM; S&P Dow Jones Indices; Barclays Capital; Merrill Lynch Net chg % Chg High Low % Chg % chg

DJ Commodity 574.40 -0.27 -0.05 589.81 506.18 13.11 1.26

ONLINE 182.64 0.29 195.14 2.49 -5.13

WSJ
TR/CC CRB Index 0.52 166.50
Crude oil, $ per barrel 50.17 0.46 0.93 54.45 39.51 25.24 -6.61
Real-time U.S. stock quotes are available on WSJ.com. Track most-active stocks, new highs/lows, mutual funds and ETFs. Natural gas, $/MMBtu 2.794 -0.147 -5.00 3.93 2.55 0.83 -24.97
.COM
Plus, get deeper money-flows data and email delivery of key stock-market data. All are available free at WSJMarkets.com Gold, $ per troy oz. 1266.60 -1.80 -0.14 1364.40 1127.80 -6.27 10.14
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
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B8 | Tuesday, August 1, 2017 THE WALL STREET JOURNAL.

COMMODITIES WSJ.com/commodities

Futures Contracts Open

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

Metal & Petroleum Futures March 3.179 3.192 t 3.109 3.119 –.113 83,483 Milk (CME)-200,000 lbs., cents per lb.
April 2.829 2.835 2.782 2.795 –.061 108,502 July 15.47 15.49 t 15.47 15.47 –.01 5,103 Currency Futures
Contract Open Aug 16.54 16.73 16.53 16.59 .03 5,314
Open High hi lo Low Settle Chg interest Cocoa (ICE-US)-10 metric tons; $ per ton. Japanese Yen (CME)-¥12,500,000; $ per 100¥
Agriculture Futures Aug .9043 .9078 .9034 .9078 .0031 387
Copper-High (CMX)-25,000 lbs.; $ per lb. Sept 2,013 2,082 2,007 2,060 … 113,122
Sept .9057 .9093 .9047 .9091 .0031 237,498
Aug 2.8930 2.9000 s 2.8865 2.8880 0.0175 2,721 Corn (CBT)-5,000 bu.; cents per bu. Dec 2,034 2,107 2,030 2,087 1 88,578
Canadian Dollar (CME)-CAD 100,000; $ per CAD
Sept 2.8830 2.9200 s 2.8775 2.8915 0.0165 152,190 Sept 371.00 372.25 367.50 370.75 –3.50 518,365 Coffee (ICE-US)-37,500 lbs.; cents per lb. Aug .8020 .8034 .7985 .8032 –.0013 775
Gold (CMX)-100 troy oz.; $ per troy oz. Dec 384.50 386.00 381.25 384.75 –3.25 564,585 Sept 135.65 139.35 134.90 139.25 1.40 95,777
Sept .8045 .8050 .7987 .8036 –.0014 183,866
Aug 1268.90 1270.80 1265.80 1266.60 –1.80 8,311 Oats (CBT)-5,000 bu.; cents per bu. Dec 139.30 142.90 138.50 142.75 1.35 60,595
British Pound (CME)-£62,500; $ per £
Oct 1273.00 1273.90 1268.40 1270.10 –1.80 42,613 Sept 290.25 290.25 281.25 284.25 –6.00 1,232 Sugar-World (ICE-US)-112,000 lbs.; cents per lb. Aug 1.3137 1.3206 s 1.3103 1.3202 .0046 407
Dec 1276.30 1277.30 1271.70 1273.40 –1.90 336,636 Dec 290.50 290.50 282.50 286.25 –5.50 5,191 Oct 14.48 14.55 14.12 14.91 .54 410,593
Sept 1.3160 1.3247 s 1.3118 1.3217 .0047 205,735
Feb'18 1276.50 1279.20 1276.10 1276.90 –1.90 18,328 Soybeans (CBT)-5,000 bu.; cents per bu. March'18 15.16 15.22 14.85 15.60 .51 192,516
Swiss Franc (CME)-CHF 125,000; $ per CHF
June 1283.00 1285.50 1283.00 1283.80 –1.90 8,223 Aug 991.50 996.50 982.50 994.50 –6.25 8,500 Sugar-Domestic (ICE-US)-112,000 lbs.; cents per lb. Sept 1.0345 1.0408 1.0326 1.0374 .0012 40,521
Nov 1003.00 1009.50 994.25 1007.25 –5.75 357,175 Sept 25.80 t
25.80 25.15 25.18 –.15 1,405
Dec 1297.60 1297.60 1296.50 1294.30 –1.90 7,510 Dec 1.0424 1.0467 1.0390 1.0436 .0013 372
Palladium (NYM) - 50 troy oz.; $ per troy oz. Soybean Meal (CBT)-100 tons; $ per ton. Nov 25.40 t
25.40 25.35 25.37 –.03 2,109
Australian Dollar (CME)-AUD 100,000; $ per AUD
Aug 885.00 885.00 885.00 890.50 5.25 3
Aug 317.30 319.40 314.90 318.60 –2.40 6,395 Cotton (ICE-US)-50,000 lbs.; cents per lb. Aug .7986 .7996 s .7956 .7997 .0004 719
Dec 324.00 326.50 321.90 325.40 –3.10 159,702 Oct 69.82 71.13 69.82 70.50 .28 211
Sept 881.60 897.35 s 877.10 885.40 5.25 30,067 Sept .7982 .8000 s .7951 .7994 .0005 133,634
Soybean Oil (CBT)-60,000 lbs.; cents per lb. Dec 68.95 69.70 68.31 68.86 .06 156,346
.7988 s
Dec 873.95 886.65 s 872.00 877.55 5.05 3,801 Dec .7978 .7943 .7985 .0005 2,047
March'18 875.50 878.55 s 875.50 870.05 3.25 211
Aug 34.70 34.81 34.33 34.71 .10 5,694 Orange Juice (ICE-US)-15,000 lbs.; cents per lb. March'18 … … .7949 .7977 .0006 218
Dec 35.02 35.27 34.66 35.13 .11 187,429 Sept 137.80 138.60 128.10 131.65 –4.65 7,607
Platinum (NYM)-50 troy oz.; $ per troy oz. Rough Rice (CBT)-2,000 cwt.; $ per cwt. Nov 137.50 138.60 130.00 132.85 –4.45 2,218
Mexican Peso (CME)-MXN 500,000; $ per MXN
Aug 928.30 929.90 928.00 937.70 4.50 15 Aug .05598 .05618 s .05582 .05602 –.00014 44
Sept 1239.00 1241.00 1224.50 1226.00 –15.50 8,308
Oct 938.00 947.10 936.10 940.70 4.10 64,862 1266.00 s
Euro (CME)-€125,000; $ per €
Silver (CMX)-5,000 troy oz.; $ per troy oz.
Nov 1262.00 1250.50 1252.00 –14.50 1,448 Interest Rate Futures Aug 1.1761 1.1853 s 1.1732 1.1839 .0069 2,724
Wheat (CBT)-5,000 bu.; cents per bu. Sept 1.1783 1.1876 s 1.1753 1.1861 .0069 439,063
Aug 16.735 16.825 16.730 16.750 0.086 393 Sept 478.75 480.75 471.50 474.50 –6.50 169,226 Treasury Bonds (CBT)-$100,000; pts 32nds of 100%
Sept 16.745 16.870 16.665 16.786 0.091 142,100 Dec 503.75 505.75 497.00 499.75 –6.25 145,565 Sept 153-050 153-160 152-210 152-310 –7.0 727,499
Crude Oil, Light Sweet (NYM)-1,000 bbls.; $ per bbl. Wheat (KC)-5,000 bu.; cents per bu. Dec 151-310 152-070 151-150 151-230 –7.0 913 Index Futures
Sept 49.85 50.41 49.18 50.17 0.46 596,827 Sept 478.75 481.50 472.50 474.75 –6.25 106,170 Treasury Notes (CBT)-$100,000; pts 32nds of 100% Mini DJ Industrial Average (CBT)-$5 x index
Oct 49.97 50.49 49.30 50.26 0.45 187,404 Dec 506.00 508.25 499.50 502.00 –6.25 83,976 Sept 125-295 126-015 125-265 125-285 –2.0 3,209,880 Sept 21775 21876 s 21749 21842 67 135,330
Nov 50.08 50.60 49.48 50.37 0.44 122,574 Wheat (MPLS)-5,000 bu.; cents per bu. Dec 125-200 125-225 125-160 125-175 –2.0 28,024 Dec 21712 21828 s 21712 21800 68 276
Dec 50.15 50.69 49.57 50.46 0.46 350,017 Sept 740.50 741.00 726.00 731.25 –9.25 26,620 5 Yr. Treasury Notes (CBT)-$100,000; pts 32nds of 100% S&P 500 Index (CME)-$250 x index
June'18 50.26 50.77 49.86 50.56 0.48 140,937 Dec 751.00 751.00 735.75 744.25 –6.75 34,405 Sept 118-047 118-065 118-032 118-047 –.2 2,973,874 Sept 2474.00 2475.20 s 2465.50 2468.00 –2.30 55,995
Dec 50.17 50.75 49.91 50.55 0.50 173,776 Cattle-Feeder (CME)-50,000 lbs.; cents per lb. Dec 117-265 117-265 117-252 117-262 –.2 9,783 Mini S&P 500 (CME)-$50 x index
NY Harbor ULSD (NYM)-42,000 gal.; $ per gal. Aug 146.075 147.400 144.650 146.175 .125 19,404 2 Yr. Treasury Notes (CBT)-$200,000; pts 32nds of 100% Sept 2470.50 2475.00 2465.25 2468.00 –2.25 2,984,105
Aug 1.6500 1.6663 1.6375 1.6519 .0122 3,262 Sept 147.000 147.825 145.150 146.650 –.450 17,487 Sept 108-055 108-062 108-050 108-055 –.2 1,348,709 Dec 2467.00 2472.75 2463.50 2466.00 –2.25 35,397
Sept 1.6493 1.6728 1.6392 1.6674 .0265 136,452 Cattle-Live (CME)-40,000 lbs.; cents per lb. Dec 108-020 108-020 108-020 108-017 –.2 2,512 Mini S&P Midcap 400 (CME)-$100 x index
Gasoline-NY RBOB (NYM)-42,000 gal.; $ per gal. Aug 112.900 113.325 111.775 112.000 –.900 44,878 30 Day Federal Funds (CBT)-$5,000,000; 100 - daily avg. Sept 1763.50 1767.40 1754.60 1759.80 –2.30 92,407
Aug 1.7017 1.7101 1.6811 1.7058 .0297 5,380 Oct 112.475 113.100 111.250 111.950 –.475 182,276 July 98.850 98.850 98.850 98.850 … 264,054 Mini Nasdaq 100 (CME)-$20 x index
Sept 1.6600 1.6791 1.6473 1.6766 .0308 140,194 Hogs-Lean (CME)-40,000 lbs.; cents per lb. Oct 98.835 98.840 98.835 98.835 … 294,262 Sept 5910.0 5933.5 s 5870.3 5882.5 –27.8 291,666
Natural Gas (NYM)-10,000 MMBtu.; $ per MMBtu. Aug 81.025 81.500 80.250 80.300 –1.100 30,486 10 Yr. Del. Int. Rate Swaps (CBT)-$100,000; pts 32nds of 100% Dec 5912.0 5939.0 s 5877.3 5889.3 –27.8 1,363
Sept 2.900 2.900 t 2.781 2.794 –.147 325,494 Oct 66.500 66.750 65.925 66.025 –.475 119,026 Sept 102.016 102.016 101.781 101.938 .031 31,721 Mini Russell 2000 (ICE-US)-$100 x index
Oct 2.929 2.932 t 2.826 2.834 –.147 188,109
Lumber (CME)-110,000 bd. ft., $ per 1,000 bd. ft. 1 Month Libor (CME)-$3,000,000; pts of 100% Sept 1430.30 1433.00 1424.00 1424.40 –5.50 573,982
Sept 378.00 381.20 371.20 378.30 .60 3,686 Dec 1424.80 1426.00 1424.80 1423.60 –5.50 378
Nov 3.019 3.019 t 2.913 2.920 –.143 89,395 Aug 98.7700 98.7700 t 98.7650 98.7700 .0025 5,000
Nov 360.60 364.80 357.30 362.30 … 845 Mini Russell 1000 (ICE-US)-$100 x index
Jan'18 3.263 3.267 t 3.163 3.173 –.130 124,794 Sept 98.7275 98.7275 98.7275 98.7575 … 482
Eurodollar (CME)-$1,000,000; pts of 100% Sept 1366.50 1368.80 1365.00 1367.60 –1.20 8,138
Aug 98.6825 98.6825 98.6775 98.6800 –.0025 87,595 U.S. Dollar Index (ICE-US)-$1,000 x index
98.6700 98.6750 98.6650 98.6700 … 1,491,016 Sept 93.68 93.80 t 92.64 92.72 –.40 48,286
Cash Prices | WSJ.com/commodities
Sept
Monday, July 31, 2017 Dec 98.5500 98.5550 98.5450 98.5500 –.0050 1,926,345
Dec 93.50 93.60 t 92.48 92.54 –.39 2,318
Dec'18 98.2700 98.2750 98.2550 98.2650 –.0050 1,401,853 Source: SIX Financial Information
These prices reflect buying and selling of a variety of actual or “physical” commodities in the marketplace—
separate from the futures price on an exchange, which reflects what the commodity might be worth in future
months.
Monday Monday Monday Bonds | WSJ.com/bonds
Coins,wholesale $1,000 face-a 12599 Soybeans,No.1 yllw IL-bp,u 9.7000
Energy
Other metals Wheat,Spring14%-pro Mnpls-u n.a. Tracking Bond Benchmarks
Propane,tet,Mont Belvieu-g 0.7305 LBMA Platinum Price PM *927.0 Wheat,No.2 soft red,St.Louis-bp,u 4.7700
Butane,normal,Mont Belvieu-g 0.8910 Wheat - Hard - KC (USDA) $ per bu-u 4.2475 Return on investment and spreads over Treasurys and/or yields paid to investors compared with 52-week
Platinum,Engelhard industrial 941.0
NaturalGas,HenryHub-i 2.840 Platinum,Engelhard fabricated 1041.0 Wheat,No.1soft white,Portld,OR-u 5.1975 highs and lows for different types of bonds
NaturalGas,TranscoZone3-i 2.790 Palladium,Engelhard industrial 898.0 Total Total
NaturalGas,TranscoZone6NY-i 2.680
Food return YTD total Yield (%) return YTD total Yield (%)
Palladium,Engelhard fabricated 998.0
NaturalGas,PanhandleEast-i 2.540 Beef,carcass equiv. index close return (%) Index Latest Low High close return (%) Index Latest Low High
Aluminum, LME, $ per metric ton *1892.0
NaturalGas,Opal-i 2.670 choice 1-3,600-900 lbs.-u 184.51 Mortgage-Backed Bloomberg Barclays
Copper,Comex spot 2.8880 Broad Market Bloomberg Barclays
NaturalGas,MarcellusNE PA-i 1.830 select 1-3,600-900 lbs.-u 174.82
Iron Ore, 62% Fe CFR China-s 73.1 1975.59 1.8
NaturalGas,HaynesvilleN.LA-i 2.700 Broilers,dressed 'A'-u n.a. 1929.80 2.7 U.S. Aggregate 2.510 1.890 2.790 Mortgage-Backed 2.830 1.990 3.120
Shredded Scrap, US Midwest-s,w 296
Coal,C.Aplc.,12500Btu,1.2SO2-r,w 42.700 Broilers, National comp wghtd-u,w 0.9824 1946.61 1.4 Ginnie Mae (GNMA) 2.790 1.870 3.090
Steel, HRC USA, FOB Midwest Mill-s 620 U.S. Corporate Indexes Bloomberg Barclays
Coal,PwdrRvrBsn,8800Btu,0.8SO2-r,w 11.280 Butter,AA Chicago 2.6900
Fibers and Textiles Cheddar cheese,bbl,Chicago 154.50 2751.00 4.6 U.S. Corporate 3.120 2.770 3.520 1157.45 1.9 Fannie mae (FNMA) 2.840 2.020 3.120
Metals
Cheddar cheese,blk,Chicago 175.50
Burlap,10-oz,40-inch NY yd-n,w 0.5925 2608.39 3.4 Intermediate 2.620 2.200 3.010 1782.89 2.0 Freddie Mac (FHLMC) 2.840 2.030 3.130
Gold, per troy oz Milk,Nonfat dry,Chicago lb. 86.25
Cotton,1 1/16 std lw-mdMphs-u 0.6900 n.a.
Engelhard industrial 1270.30 Cocoa,Ivory Coast-w n.a. 3764.62 7.2 Long term 4.220 3.970 4.710 n.a. Muni Master n.a. n.a. n.a.
Cotlook 'A' Index-t *85.00 1.3545
Engelhard fabricated 1365.57 Coffee,Brazilian,Comp
Hides,hvy native steers piece fob-u n.a. 562.32 3.4 Double-A-rated 2.570 2.040 2.870 n.a. n.a. 7-12 year n.a. n.a. n.a.
Handy & Harman base 1267.55 Coffee,Colombian, NY 1.5864
1406.98 Wool,64s,staple,Terr del-u,w n.a. 0.8550 n.a.
Handy & Harman fabricated Eggs,large white,Chicago-u 709.06 5.1 Triple-B-rated 3.410 3.180 3.870 n.a. 12-22 year n.a. n.a. n.a.
LBMA Gold Price AM *1259.60 Grains and Feeds Flour,hard winter KC 14.90
LBMA Gold Price PM *1264.90 Hams,17-20 lbs,Mid-US fob-u n.a. High Yield Bonds Merrill Lynch n.a. n.a. 22-plus year n.a. n.a. n.a.
1316.85 Barley,top-quality Mnpls-u 4.70 80.77
Krugerrand,wholesale-e Hogs,Iowa-So. Minnesota-u n.a. n.a. High Yield Constrained n.a. n.a. n.a. Global Government J.P. Morgan†
Maple Leaf-e 1329.51 Bran,wheat middlings, KC-u 68 Pork bellies,12-14 lb MidUS-u n.a.
American Eagle-e 1329.51 Corn,No. 2 yellow,Cent IL-bp,u 3.4050 Pork loins,13-19 lb MidUS-u 1.1468 n.a. n.a. Triple-C-rated n.a. n.a. n.a. 540.41 0.6 Global Government 1.440 0.830 1.560
Mexican peso-e 1534.66 Corn gluten feed,Midwest-u,w 74.7 Steers,Tex.-Okla. Choice-u 117.00 746.44 -0.9
n.a. n.a. High Yield 100 n.a. n.a. n.a. Canada 2.120 1.240 2.120
Austria crown-e 1244.13 Corn gluten meal,Midwest-u,w 483.4 Steers,feeder,Okla. City-u,w 162.09
Austria phil-e 1329.51 Cottonseed meal-u,w 200 n.a. n.a. Global High Yield Constrained n.a. n.a. n.a. n.a. n.a. EMU§ n.a. n.a. n.a.
Hominy feed,Cent IL-u,w 88 Fats and Oils
Silver, troy oz. n.a. n.a. Europe High Yield Constrained n.a. n.a. n.a. 703.17 -0.5 France 0.930 0.280 1.210
Engelhard industrial 16.8500 Meat-bonemeal,50% pro Mnpls-u,w 318 Corn oil,crude wet/dry mill-u,w 37.0000
Engelhard fabricated 20.2200 Oats,No.2 milling,Mnpls-u 3.1425 Grease,choice white,Chicago-h 0.3125 U.S Agency Bloomberg Barclays 504.47 -2.0 Germany 0.550 -0.100 0.620
Handy & Harman base 16.8200 Rice, 5% Broken White, Thailand-l,w 385.00 Lard,Chicago-u n.a. 1.9
1636.12 U.S Agency 1.810 1.220 1.960 286.95 -0.4 Japan 0.430 0.070 0.460
Handy & Harman fabricated 21.0250 Rice, Long Grain Milled, No. 2 AR-u,w 22.38 Soybean oil,crude;Centl IL-u 0.3396
LBMA spot price £12.7705 Sorghum,(Milo) No.2 Gulf-u 7.8088 Tallow,bleach;Chicago-h 0.3550 1465.88 1.3 10-20 years 1.610 1.050 1.750 555.99 -1.8 Netherlands 0.690 0.030 0.760
(U.S.$ equivalent) 16.7600 SoybeanMeal,Cent IL,rail,ton48%-u 320.10 Tallow,edible,Chicago-u n.a.
3315.58 6.1 20-plus years 2.960 2.430 3.460 918.75 0.6 U.K. 1.560 0.960 1.790
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; 2438.87 4.0 Yankee 2.710 2.340 3.090 n.a. n.a. Emerging Markets ** n.a. n.a. n.a.
L=livericeindex.com; M=midday; N=nominal; n.a.=not quoted or not available; R=SNL Energy; S=The Steel Index; T=Cotlook Limited; U=USDA; W=weekly, Z=not quoted. *Constrained indexes limit individual issuer concentrations to 2%; the High Yield 100 are the 100 largest bonds † In local currency § Euro-zone bonds
*Data as of 7/28
Source: WSJ Market Data Group ** EMBI Global Index Sources: Merrill Lynch; Bloomberg Barclays; J.P.Morgan

Global Government Bonds: Mapping Yields

Borrowing Benchmarks | WSJ.com/bonds Yields and spreads over or under U.S. Treasurys on benchmark two-year and 10-year government bonds in
Money Rates July 31, 2017
selected other countries; arrows indicate whether the yield rose(s) or fell (t) in the latest session
Key annual interest rates paid to borrow or lend money in U.S. and international markets. Rates below are a Country/ Yield (%) Spread Under/Over U.S. Treasurys, in basis points
Coupon (%) Maturity, in years Latest(l) 0 20 40 60 80 100 120 Previous Month ago Year ago Latest Prev Year ago
guide to general levels but don’t always represent actual transactions.
1.375 U.S. 2 1.359 s l 1.355 1.386 0.659
Week —52-WEEK— Week —52-WEEK— 2.375 10 2.294 s l 2.293 2.302 1.452
Inflation Latest ago High Low Latest ago High Low 2.750 Australia 2 1.801 t l 1.818 1.737 1.526 44.2 46.3 86.7
June index Chg From (%)
level May '17 June '16 Britain 0.25 0.25 0.50 0.25 Treasury bill auction 2.750 10 2.688 t l 2.693 2.608 1.884 39.4 40.0 43.1
Australia 1.50 1.50 1.75 1.50 4 weeks 0.980 0.955 0.980 0.160 0.000 France 2 -0.451 s l -0.463 -0.364 -0.553 -181.0 -181.8 -121.3
U.S. consumer price index 13 weeks 1.070 1.180 1.180 0.250 1.000 10 0.806 s l 0.805 0.821 0.106 -148.8 -148.8 -134.7
All items 244.955 0.09 1.6 Overnight repurchase 26 weeks 1.130 1.130 1.130 0.395
Core 252.014 0.07 1.7 U.S. 1.20 1.13 1.38 0.15
0.000 Germany 2 -0.676 s l -0.683 -0.594 -0.626 -203.5 -203.8 -128.5
Secondary market 0.500 10 0.545 s l 0.544 0.467 -0.118 -174.8 -174.9 -157.1
International rates U.S. government rates Fannie Mae 0.050 Italy 2 -0.020 t l -0.019 -0.307 -0.073 -137.9 -137.4 -73.3
Week 52-Week 30-year mortgage yields 2.200 10 2.093 t l 2.127 2.155 1.166 -16.6 -28.6
Discount -20.1
Latest ago High Low
1.75 1.75 1.75 1.00 30 days 3.489 3.464 3.865 2.808 0.100 Japan 2 -0.115 t l -0.112 -0.116 -0.249 -147.4 -146.8 -90.8
Prime rates 60 days 3.517 3.489 3.899 2.837
0.100 10 0.079 s l 0.078 0.088 -0.174 -221.4 -221.5 -162.6
U.S. 4.25 4.25 4.25 3.50
Federal funds
Other short-term rates 2.750 Spain 2 -0.346 t l -0.334 -0.255 -0.171 -170.5 -168.9 -83.0
Canada 2.95 2.95 2.95 2.70 Effective rate 1.1000 1.1800 1.2000 0.3300
1.475 1.475 1.475 1.475
1.500 10 1.491 t l 1.530 1.532 1.016 -80.3 -76.3 -43.6
Japan High 1.3125 1.3125 1.3125 0.5625 Week 52-Week
Low 0.9700 0.9700 1.1600 0.2000 Latest ago high low 1.750 U.K. 2 0.271 s l 0.255 0.372 0.112 -108.9 -110.0 -54.8
Policy Rates
Bid 1.0700 1.1600 1.1700 0.2800 4.250 10 1.231 s l 1.218 1.259 0.686 -106.2 -107.5 -76.7
Euro zone 0.00 0.00 0.00 0.00 Call money
Switzerland 0.50 0.50 0.50 0.50 Offer 1.0800 1.1700 1.1900 0.3000 3.00 3.00 2.25 Source: Tullett Prebon
3.00

Commercial paper (AA financial)

Corporate Debt
in that same company’s share price.
Key Interest Rates 90 days 1.26 1.21 1.26 0.59
Investment-grade spreads that tightened the most…
Data are annualized on a 360-day basis. Treasury yields are per annum, Libor Spread*, in basis points Stock Performance
on actively traded noninflation and inflation-indexed issues that are One month 1.23167 1.23278 1.23389 0.49390 Issuer Symbol Coupon (%) Maturity Current One-day change Last week Close ($) % chg
adjusted to constant maturities. Data are from weekly Federal Reserve Three month 1.31056 1.31389 1.31667 0.75910 Societe Generale S.A. SOCGEN 7.375 Sept. 13, ’49 183 –16 208 ... ...
release H.15. Six month 1.45500 1.45278 1.46544 1.11470 2.700 March 7, ’22 52 64 62.31 –0.08
Bank of Nova Scotia BNS –11
Week Ended 52-Week Week Ended 52-Week One year 1.72733 1.73567 1.82761 1.43360 JPMorgan Chase JPM 6.000 Aug. 1, ’49 136 –10 n.a. 91.80 0.57
Jul 28 Jul 21 High Low Jul 28 Jul 21 High Low
Euro Libor Hess HES 7.300 Aug. 15, ’31 312 –8 n.a. 44.54 –0.58
Federal funds (effective) Treasury yields (secondary market) Deutsche Bank AG DB 4.500 April 1, ’25 193 –7 202 17.84 –1.92
One month -0.398 -0.402 -0.369 -0.405
1.16 1.16 1.16 0.35 1-month 0.97 0.95 0.97 0.12
Three month -0.377 -0.373 -0.303 -0.378 Enbridge ENBCN 3.500 June 10, ’24 85 –7 n.a. ... ...
3-month 1.11 1.09 1.11 0.24
Commercial paper 6-month 1.11 1.09 1.12 0.40 Six month -0.299 -0.300 -0.192 -0.308 Kinder Morgan Energy Partners KMI 6.550 Sept. 15, ’40 240 –7 n.a. … …
Nonfinancial TIPS One year -0.187 -0.187 -0.064 -0.190 Morgan Stanley MS 5.500 July 24, ’20 69 –7 79 46.90 0.51
1-month 1.11 1.11 1.11 0.35
5-year 0.18 0.20 0.29 -0.30
2-month 1.15 1.14 1.15 0.39
7-year 0.36 0.38 0.49 -0.16 Euro interbank offered rate (Euribor) …And spreads that widened the most
3-month 1.18 1.18 1.18 0.46
10-year 0.49 0.51 0.63 0.02 One month -0.370 -0.374 -0.366 -0.375 JPMorgan Chase JPM 7.900 April 30, ’49 –16 15 –14 91.80 0.57
Financial 20-year 0.80 0.80 0.97 0.40 Three month -0.330 -0.329 -0.297 -0.332 PNC Bank NA PNC 2.000 May 19, ’20 41 10 40 … …
1-month 1.17 1.14 1.17 0.40 Long-term avg 0.85 0.83 0.97 0.44
2-month 1.20 1.18 1.20 0.52 Six month -0.271 -0.271 -0.183 -0.274 Telefonica Emisiones Sau* TELEFO 5.213 March 8, ’47 169 10 170 ... ...
3-month 1.24 1.22 1.24 0.64 Interest rate swaps One year -0.151 -0.153 -0.045 -0.163 Goldman Sachs GS 5.250 July 27, ’21 78 9 n.a. 225.33 0.77
1-year n.a. n.a. 1.00 0.87
Discount window primary credit 2-year n.a. n.a. 1.09 0.93 Value 52-Week Canadian Imperial Bank of Commerce CM 2.550 June 16, ’22 70 8 72 86.84 0.36
1.75 1.75 1.75 1.00 3-year n.a. n.a. 1.17 0.99 Latest Traded High Low Ecolab ECL 2.700 Nov. 1, ’26 73 8 n.a. 131.67 –0.19
4-year n.a. n.a. 1.25 1.05 Oneok OKE 6.000 June 15, ’35 207 8 211 56.57 0.19
Conventional mortgages 5-year n.a. n.a. 1.33 1.11 DTCC GCF Repo Index
n.a. n.a. 3.50 3.42 7-year n.a. n.a. 1.48 1.25 General Motors Financial GM 4.000 Jan. 15, ’25 154 7 148 … …
Treasury 1.171 29.800 1.366 0.244
10-year n.a. n.a. 1.65 1.40
Treasury yields at constant
maturities 30-year n.a. n.a. 2.00 1.69
MBS 1.213 100.400 1.506 0.257 High-yield issues with the biggest price increases…
Open Implied Bond Price as % of face value Stock Performance
1-month 1.00 0.98 1.00 0.13 Corporate bonds, Moody's seasoned Issuer Symbol Coupon (%) Maturity Current One-day change Last week Close ($) % chg
Settle Change Interest Rate
3-month 1.13 1.11 1.13 0.24 Aaa n.a. n.a. 3.49 3.24
6-month 1.13 1.11 1.14 0.41 Baa n.a. n.a. 4.41 4.19 DTCC GCF Repo Index Futures Hexion HXN 6.625 April 15, ’20 101.625 7.25 94.875 ... ...
1-year 1.23 1.22 1.23 0.52 Pacific Drilling S.A. PACD 5.375 June 1, ’20 42.063 4.06 n.a. 1.50 –2.60
State and local bonds Treasury Jly 98.893 0.008 8883 1.107
2-year 1.37 1.36 1.41 0.67 Cliffs Natural Resources CLF 8.250 March 31, ’20 112.400 2.90 109.312 7.72 8.73
3-year 1.52 1.52 1.64 0.79 n.a. n.a. 3.06 2.83 Treasury Aug 98.880 unch. 3204 1.120
Transocean RIG 6.800 March 15, ’38 76.500 2.25 73.250 8.65 –0.46
5-year 1.85 1.83 2.08 1.07 Treasury Sep 98.870 unch. 2084 1.130
Eurodollars Precision Drilling PDCN 6.500 Dec. 15, ’21 99.600 1.35 97.500 ... ...
7-year 2.11 2.08 2.37 1.35 1 month n.a. n.a. 0.50 0.48
10-year 2.30 2.27 2.55 1.53 3 month n.a. n.a. 0.93 0.68 Notes on data: Telecom Italia Capital S.A. TITIM 7.200 July 18, ’36 122.625 0.88 n.a. ... ...
20-year 2.65 2.61 2.91 1.85 6 month n.a. n.a. 1.30 0.95 U.S. prime rate is the base rate on corporate
Lamb Weston Holdings LW 4.875 Nov. 1, ’26 105.375 0.83 103.780 43.98 0.37
loans posted by at least 70% of the 10 largest NRG Yield Operating NYLD 5.000 Sept. 15, ’26 102.562 0.81 n.a. … …
Notes on data: U.S. banks, and is effective June 15, 2017. Other
Federal-funds rate is an average for the seven days ended Wednesday, weighted according to rates prime rates aren’t directly comparable; lending …And with the biggest price decreases
on broker trades; Commercial paper rates are discounted offer rates interpolated from sales by practices vary widely by location; Discount rate Hertz HTZ 5.500 Oct. 15, ’24 81.500 –4.50 85.531 13.67 –21.16
discounted averages of dealer bid rates on nationally traded certificates of deposit; Discount window is effective March 16, 2017. DTCC GCF Repo
primary credit rate is charged for discounts made and advances extended under the Federal Index is Depository Trust & Clearing Corp.'s
Albertsons ABSX 5.750 March 15, ’25 91.000 –2.25 n.a. ... ...
Reserve's primary credit discount window program; rate is average for seven days ended Wednesday; weighted average for overnight trades in Citgo Holding CITHOL 10.750 Feb. 15, ’20 105.875 –1.88 108.910 ... ...
Inflation-indexed long-term TIPS average is indexed and is based on the unweighted average bid applicable CUSIPs. Value traded is in billions of Sprint Capital S 6.875 Nov. 15, ’28 108.875 –1.25 110.750 … …
yields for all TIPS with remaining terms to maturity of 10 years or more; Swap rates are International U.S. dollars. Federal-funds rates are Tullett
Swaps and Derivatives Association (ISDA(R)) mid-market par rates for a fixed-rate payer, who in
T–Mobile USA TMUS 6.375 March 1, ’25 107.625 –1.00 108.250 61.66 –0.19
Prebon rates as of 5:30 p.m. ET. Futures on the
return receives three-month Libor, and are based on rates collected at 11:00 a.m. ET by Garban DTCC GCF Repo Index are traded on NYSE Liffe
Kindred Healthcare KND 8.750 Jan. 15, ’23 100.000 –0.88 104.125 8.95 –3.76
Intercapital PLC; Source is Reuters; Moody's triple-AAA rates are averages of industrial bonds only; US. Revlon Consumer Products REV 6.250 Aug. 1, ’24 76.188 –0.81 80.750 … …
Muni rates are Thursday quotes based on the Bond Buyer Index for general obligation, 20 years to AECOM ACM 5.125 March 15, ’27 100.750 –0.75 101.000 31.90 1.01
maturity, mixed quality debt; Mortgage rates are contract rates on commitments for fixed-rate first Sources: Federal Reserve; Bureau of Labor
mortgages Statistics; DTCC; SIX Financial Information; *Estimated spread over 2-year, 3-year, 5-year, 10-year or 30-year hot-run Treasury; 100 basis points=one percentage pt.; change in spread shown is for Z-spread.
Sources: Federal Reserve; for additional information on these rate data and their derivation, General Electric Capital Corp.; Tullett Prebon Note: Data are for the most active issue of bonds with maturities of two years or more
please see, www.federalreserve.gov/releases/h15/data.htm Information, Ltd. Sources: MarketAxess Corporate BondTicker; WSJ Market Data Group
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
THE WALL STREET JOURNAL. Tuesday, August 1, 2017 | B9

BIGGEST 1,000 STOCKS

Net Net Net Net Net Net Net
How to Read the Stock Tables Footnotes: Stock Sym Close Chg Stock Sym Close Chg Stock Sym Close Chg Stock Sym Close Chg Stock Sym Close Chg Stock Sym Close Chg Stock Sym Close Chg
The following explanations apply to NYSE, s-New 52-week high.
ColonyNorthStar CLNS 14.64 -0.02 s FidelityNtlInfo FIS 91.22 0.39 Interpublic IPG 21.61 ... OmegaHealthcare OHI 31.59 0.53 SunTrustBanks STI 57.29 0.70 ZimmerBiomet ZBH 121.32 -2.46 s LibertyBroadbandC LBRDK 99.18 4.69
NYSE Arca, NYSE MKT and Nasdaq Stock t-New 52-week low.
Market listed securities. Prices are composite dd-Indicates loss in the most recent Comerica CMA 72.31 0.33 58.com WUBA 51.05 -0.38 InvitationHomes INVH 21.32 -0.01 Omnicom OMC 78.74 -0.16 SynchronyFin SYF 30.32 0.38 Zoetis ZTS 62.52 0.31 LibertyGlobal A LBTYA 33.86 0.27
quotations that include primary market trades four quarters. SABESP SBS 10.76 -0.11 FirstData FDC 18.66 0.16 IronMountain IRM 36.43 1.24 Oracle ORCL 49.93 -0.37 Syngenta SYT 92.16 -0.10 LibertyGlobal C LBTYK 32.77 0.15
as well as trades reported by Nasdaq OMX FD-First day of trading. ConagraBrands CAG 34.24 ... FirstRepBank FRC 100.33 0.53 IsraelChemicals ICL 4.78 -0.07 Orange ORAN 16.85 -0.04 Sysco SYY 52.62 0.37 NASDAQ LibertyLiLAC A LILA 25.72 0.19
BXSM (formerly Boston), Chicago Stock h-Does not meet continued listing ConchoRscs CXO 130.26 -0.30 FirstEnergy FE 31.91 -0.24 ItauUnibanco ITUB 11.91 0.13 OrbitalATK OA 102.18 -0.43 s TAL Education TAL 156.77 4.11 LibertyLiLAC C LILAK 25.52 0.03
ConocoPhillips COP 45.37 FleetCorTech FLT 152.06 s Orix AGNC Invt AGNC 21.18 0.09
Exchange, CBOE, National Stock Exchange, ISE standards 0.11 0.01 JPMorganChase JPM 91.80 0.52 IX 82.83 3.43 TE Connectivity TEL 80.39 -1.50 LibertyQVC B QVCB 23.96 -0.13
ConEd ED 82.86 0.48 t Fluor FLR 43.43 s Telus Ansys ANSS 129.55 1.12
and BATS. lf-Late filing -1.15 JacobsEngineering JEC 52.72 0.33 OwensCorning OC 67.05 -0.17 TU 36.14 -0.18 LibertyQVC A QVCA 23.94 -0.29
ConstBrands A STZ 193.35 -1.24 FomentoEconMex FMX 100.88 ASML ASML 150.33 -2.20 s
The list comprises the 1,000 largest q-Temporary exemption from Nasdaq -0.48 JamesHardie JHX 15.41 -0.15 PG&E PCG 67.69 0.24 Ternium TX 30.60 0.26 LibertyVenturesA LVNTA 60.58 2.74
ContinentalRscs CLR 33.43 FootLocker FL 47.19 Abiomed ABMD 148.09 1.84
companies based on market capitalization. requirements. -0.09 1.17 JanusHenderson JHG 33.49 0.63 PLDT PHI 32.47 -1.25 TIM Part TSU 16.87 -0.21 LibertyFormOne A FWONA 33.75 0.22
Underlined quotations are those stocks with t-NYSE bankruptcy Cooper COO 243.87 -2.73 FordMotor F 11.22 0.05
ActivisionBliz ATVI 61.78 0.33
J&J JNJ 132.72 0.87 PNC Fin PNC 128.80 1.15 TJX TJX 70.31 0.71 LibertyFormOne C FWONK 35.17 0.23
large changes in volume compared with the v-Trading halted on primary market. Corning GLW 29.14 -0.11 ForestCIty A FCE/A 24.38 -0.39 s POSCO AdobeSystems ADBE 146.49 -0.24 s LibertyBraves A BATRA
JohnsonControls JCI 38.95 -0.69 PKX 75.12 1.33 TaiwanSemi TSM 35.96 0.10 25.24 -0.59
issue’s average trading volume. vj-In bankruptcy or receivership or Coty COTY 20.48 -0.06 s Fortis FTS 36.46 0.23 AkamaiTech AKAM 47.14 0.25 LibertyBraves C BATRK 25.23 -0.47
JonesLangLaSalle JLL 127.22 0.28 PPG Ind PPG 105.25 -0.78 TargaResources TRGP 46.41 -0.36
Boldfaced quotations highlight those issues being reorganized under the s Credicorp BAP 185.14 -3.77 Fortive FTV 64.74 0.27 AlexionPharm ALXN 137.34 -0.65 s LibertySirius A LSXMA 46.13 0.37
JuniperNetworks JNPR 27.95 0.18 PPL PPL 38.33 0.15 Target TGT 56.67 0.56
whose price changed by 5% or more if their Bankruptcy Code, or securities CreditSuisse CS 15.35 -0.37 FortBrandsHome FBHS 65.67 0.01 TataMotors TTM 34.44 AlignTech ALGN 167.23 -5.83 s LibertySirius C LSXMK 46.00 0.51
KAR Auction KAR 42.04 -0.31 PVH PVH 119.29 -0.65 -0.16
previous closing price was $2 or higher. assumed by such companies. CrestwoodEquity CEQP 24.60 0.05 Franco-Nevada FNV 72.46 -0.10 KB Fin TechnipFMC FTI 28.54 Alkermes ALKS 54.41 -0.81 LincolnElectric LECO 87.26 0.48
KB 53.20 0.35 PackagingCpAm PKG 109.48 -0.29 -0.35
CrownCastle CCI 100.58 ... FranklinRscs BEN 44.78 0.09 KKR TeckRscsB TECK 21.69 AlnylamPharm ALNY 82.74 0.11 LogitechIntl LOGI 36.04 -0.40
KKR 19.38 0.08 PaloAltoNtwks PANW 131.78 -1.92 0.48
CrownHoldings CCK 59.47 0.58 Freeport-McMoRan FCX 14.62 0.02 KT s TelecomItalia TI Alphabet A GOOGL 945.50-12.83 LogMeIn LOGM 116.45 0.25
Wall Street Journal stock tables reflect composite regular trading as of 4 p.m. and KT 18.19 -0.41 ParkHotels PK 26.93 0.05 10.40 0.27
Cullen/Frost CFR 90.78 -0.77 FreseniusMed FMS 47.08 -0.15 TelecomItalia A TI/A 8.26 Alphabet C GOOG 930.50-11.03 lululemon LULU 61.64 -0.19
changes in the closing prices from 4 p.m. the previous day. KSCitySouthern KSU 103.19 0.07 ParkerHannifin PH 165.98 1.23 0.22
Cummins CMI 167.90 0.68 GGP GGP 22.61 -0.17 Teleflex TFX 207.22 Altaba AABA 58.40 -0.80 MarketAxess MKTX 202.89 -4.95
Kellogg K 68.00 0.35 ParsleyEnergy PE 29.28 -0.19 -2.88
DTE Energy DTE 107.06 0.34 Gallagher AJG 58.79 -0.62 KeyCorp KEY 18.04 0.13 Pearson PSO 8.60 TelefonicaBras VIV 14.88 -0.14
Amazon.com AMZN 987.78-32.26 Marriott MAR 104.19 0.85
-0.08
Monday, July 31, 2017 Net Net DXC Tech DXC 78.38 -0.05 Gap GPS 23.83 0.04 Amdocs DOX 67.17 0.08 MarvellTech MRVL 15.56 -0.03
Stock Sym Close Chg Stock Sym Close Chg KeysightTechs KEYS 41.59 -0.33 PembinaPipeline PBA 34.10 -0.08 Telefonica TEF 11.28 -0.09
Net Danaher DHR 81.49 0.06 Gartner IT 128.32 0.29 KilroyRealty KRC 69.41 -1.04 Pentair PNR 63.07 -0.20 TelekmIndonesia TLK 35.03 -0.03
Amerco UHAL 388.56 1.81 Mattel MAT 20.02 0.38
Stock Sym Close Chg ApartmtInv AIV 45.55 0.29 Brown&Brown BRO 44.60 0.02 Darden DRI 83.88 0.03 Gazit-Globe GZT 9.39 -0.32 KimberlyClark KMB 123.16 0.71 PepsiCo PEP 116.61 ... Tenaris TS 31.54 -0.10 AmericanAirlines AAL 50.44 -0.05 MaximIntProducts MXIM 45.44 -0.03
ApolloGlobalMgmt APO 28.10 0.36 Brown-Forman A BF/A 51.54 -0.14 DaVita DVA 64.78 -0.69 GeneralDynamics GD 196.33 -1.61 KimcoRealty KIM 20.18 -0.23 PerkinElmer PKI 65.83 -0.06 Teradyne TER 34.59 0.11 Amgen AMGN 174.51 -0.03 MelcoResorts MLCO 20.20 -0.12
NYSE AquaAmerica WTR 33.38 -0.03 Brown-Forman B BF/B 49.40 -0.63 s Deere DE 128.28 -0.63 GeneralElec GE 25.61 0.08 KinderMorgan KMI 20.43 0.03 Perrigo PRGO 74.92 0.45 s Tesoro TSO 99.53 1.66 AnalogDevices ADI 79.01 -0.23 MercadoLibre MELI 288.42 -0.45
Aramark ARMK 39.86 0.42 BuckeyePtrs BPL 63.39 -0.19 DellTechnologies DVMT 64.27 0.55 GeneralMills GIS 55.66 0.33 KinrossGold KGC 4.12 -0.09 PetroChina PTR 64.61 0.10 TesoroLogistics TLLP 52.13 0.13 Apple AAPL 148.73 -0.77 MicrochipTech MCHP 80.04 -0.66
ABB ABB 23.50 ... DelphiAutomotive DLPH 90.42 0.47 GeneralMotors GM 35.98 0.21 AppliedMaterials AMAT 44.31 -0.94 MicronTech MU 28.12 -1.16
ArcelorMittal MT 26.16 0.46 Bunge BG 78.39 -1.46 Kohl's KSS 41.35 0.11 PetroleoBrasil PBR 8.81 0.13 TevaPharm TEVA 32.17 -0.17
AES AES 11.18 0.20 DeltaAir DAL 49.36 -0.97 Genpact G 29.00 0.15 ArchCapital ACGL 97.26 1.35 Microsemi MSCC 52.08 -0.51
ArcherDaniels ADM 42.18 0.40 BurlingtonStores BURL 87.03 1.25 KoninklijkePhil PHG 38.17 0.25 PetroleoBrasilA PBR/A 8.50 0.15 Textron TXT 49.13 -0.12
s Aflac AFL 79.75 0.37 DeutscheBank DB 17.84 -0.35 GenuineParts GPC 84.93 1.00 AthenaHealth ATHN 138.32 -1.61 Microsoft MSFT 72.70 -0.34
Arconic ARNC 24.79 -0.16 CBD Pao CBD 23.22 0.18 KoreaElcPwr KEP 20.07 0.05 Pfizer PFE 33.16 0.01 ThermoFisherSci TMO 175.53 -0.44
AGCO AGCO 72.14 0.20 DevonEnergy DVN 33.31 0.10 Gerdau GGB 3.37 0.05 Atlassian TEAM 35.82 -1.32 Middleby MIDD 130.68 1.48
AristaNetworks ANET 149.29 -1.11 CBRE Group CBG 37.99 0.36 Kroger KR 24.52 0.24 PhilipMorris PM 116.71 -1.80 ThomsonReuters TRI 45.89 -0.17
AT&T T 39.00 ... s Diageo DEO 130.57 0.48 Gildan GIL 30.13 -0.02 Autodesk ADSK 110.79 -0.71 Momo MOMO 43.93 -0.13
ArrowElec ARW 81.29 -0.52 CBS A CBS/A 66.09 -1.81 Kyocera KYO 61.09 0.50 Phillips66 PSX 83.75 0.10 ThorIndustries THO 105.35 -0.04
AbbottLabs ABT 49.18 -0.43
Assurant AIZ 105.27 -0.20 CBS B DigitalRealty DLR 115.34 2.16 GlaxoSmithKline GSK 40.52 -0.41 3M MMM 201.17 s ADP ADP 118.91 1.53 Mondelez MDLZ 44.02 0.09
CBS 65.83 -1.60 LATAMAirlines LTM 11.73 -0.13 PinnacleFoods PF 59.38 -0.40 1.45
AbbVie ABBV 69.91 -0.53
AstraZeneca AZN 30.18 -0.09 CF Industries CF 29.35 DiscoverFinSvcs DFS 60.94 0.68 GlobalPayments GPN 94.37 -0.15 BOK Fin BOKF 85.07 -0.02 MonsterBeverage MNST 52.75 -0.66
0.36 L Brands LB 46.39 0.73 PinnacleWest PNW 86.73 0.59 Tiffany TIF 95.51 -0.83
Accenture ACN 128.82 0.42
Athene ATH 50.53 0.27 CGI Group GIB 52.81 Disney DIS 109.93 -0.03 GoDaddy GDDY 42.98 -0.25 LG Display LPL 14.23 0.19 PioneerNatRscs PXD 163.10 1.69 TimeWarner TWX 102.42 -0.31 s Baidu BIDU226.35 6.35 Mylan MYL 38.99 0.25
-0.13
AcuityBrands AYI 202.65 -1.46
AtmosEnergy ATO 86.76 0.19 CIT Group CIT 47.65 DollarGeneral DG 75.16 0.41 Goldcorp GG 13.13 0.08 Biogen BIIB 289.59 2.15 NXP Semi NXPI 110.33 0.11
-0.19 LINE LN 36.76 1.35 PlainsAllAmPipe PAA 26.37 -0.15 Toll Bros TOL 38.59 -0.25
Adient ADNT 65.47 -0.07
Autohome ATHM 48.68 -0.03 CMS Energy CMS 46.24 DominionEner D 77.18 0.19 GoldmanSachs GS 225.33 1.72 BioMarinPharm BMRN 87.73 -0.61 Nasdaq NDAQ 74.37 ...
-0.06 L3 Tech LLL 174.97 -1.40 PlainsGP PAGP 27.34 -0.02 Torchmark TMK 78.97 0.08
AdvanceAuto AAP 112.01 1.80
Autoliv ALV 108.39 -0.32 s CNA Fin Domino's DPZ 186.50 3.41 Graco GGG 116.04 2.36 Bioverativ BIVV 61.97 -0.56 NetApp NTAP 43.42 -0.07
CNA 51.95 2.61 LabCpAm LH 158.91 -1.16 PolarisIndustries PII 89.66 0.96 Toro TTC 71.09 -0.17
AdvSemiEngg ASX 6.59 -0.04
AutoZone AZO 539.82 12.90 CNOOC Donaldson DCI 47.49 -0.10 Grainger GWW 166.74 1.51 Broadcom AVGO 246.66 -3.71 Netease NTES 311.28 -2.51
CEO 112.45 -0.16 LambWeston LW 43.98 0.16 PostHoldings POST 83.20 -0.47 TorontoDomBk TD 51.54 0.02
Aegon AEG 5.57 0.02 Avalonbay AVB 192.35 -0.15 s CPFLEnergia CPL 17.17 DouglasEmmett DEI 38.26 -0.07 s GreatPlainsEner GXP 30.86 0.12 CA CA 31.04 0.10 Netflix NFLX 181.66 -2.38
0.09 LasVegasSands LVS 61.61 0.33 Potash POT 17.90 0.08 Total TOT 50.67 0.06
AerCap AER 49.10 0.06 Avangrid AGR 45.42 0.23 CRH Dover DOV 84.00 0.04 GpoAeroportuar PAC 114.60 0.31 s CBOE Holdings CBOE 94.53 1.04 NewsCorp A NWSA 14.31 -0.08
CRH 35.07 -0.10 Lazard LAZ 46.71 0.69 Praxair PX 130.16 -2.10 TotalSystem TSS 63.46 -0.35
Aetna AET 154.31 -0.98 DowChemical DOW 64.24 -1.44 GpoAeroportSur ASR 212.55 -2.22 CDK Global CDK 65.78 -0.21 NewsCorp B NWS 14.70 -0.10
AveryDennison AVY 92.93 0.90 CVS Health CVS 79.93 0.18 Lear LEA 148.19 -0.98 s PrincipalFin PFG 66.75 -0.62 ToyotaMotor TM 112.84 0.58
s AffiliatedMgrs AMG 185.83 7.18 AxaltaCoating AXTA 31.50 -0.48 CabotOil DrPepperSnap DPS 91.16 0.32 GpoAvalAcciones AVAL 8.85 0.11 CDW CDW 63.43 0.06 Nordson
COG 24.87 -0.63 Leggett&Platt LEG 48.18 -1.40 Procter&Gamble PG 90.82 0.61 TransCanada TRP 51.12 -0.01 NDSN 127.00 2.05
AgilentTechs A 59.79 -0.29 t DrReddy'sLab RDY 36.59 -0.20 GpFinSantandMex BSMX 10.26 0.18 CH Robinson CHRW 65.60 0.35 NorthernTrust NTRS 87.51 0.25
BB&T BBT 47.32 0.44 CAE CAE 16.97 0.10 Leidos LDOS 53.44 -0.16 s Progressive PGR 47.13 -0.09 TransDigm TDG 282.14 -0.52
AgnicoEagle AEM 46.71 -0.58 BCE DuPont DD 82.21 -1.77 GrupoTelevisa TV 26.62 -0.12 CME Group CME 122.62 1.34 NorwegianCruise NCLH 55.07 -0.14
BCE 46.93 -0.02 CamdenProperty CPT 89.70 0.31 Lennar A LEN 52.44 0.01 s Prologis PLD 60.81 -0.74 TransUnion TRU 45.83 0.54
Agrium AGU 100.10 0.32 BHPBilliton BHP 41.66 0.52 CampbellSoup CPB 52.83 DukeEnergy DUK 85.12 0.21 HCA Healthcare HCA 80.34 -0.10 CSX CSX 49.34 -0.65 NVIDIA NVDA 162.51 -1.88
-0.02 Lennar B LEN/B 44.47 0.19 PrudentialFin PRU 113.23 0.03 Travelers TRV 128.09 0.88
AirProducts APD 142.15 -1.34 BHPBilliton BBL 36.41 0.52 CIBC DukeRealty DRE 28.59 -0.28 HCP HCP 31.65 -0.18 CadenceDesign CDNS 36.90 -0.11 OReillyAuto ORLY 204.30 4.27
CM 86.84 0.31 LennoxIntl LII 171.00 -0.02 s Prudential PUK 48.97 1.07 TurkcellIletism TKC 9.20 -0.10
AlaskaAir ALK 85.23 -1.09 BP BP 35.14 -0.02 CanNtlRlwy CNI 79.02 ENI E 31.58 0.40 HDFC Bank HDB 96.78 -0.06 Carlyle CG 20.50 -0.25 OldDomFreight ODFL 95.91 -2.14
-0.10 LeucadiaNatl LUK 26.03 -0.02 PublicServiceEnt PEG 44.97 0.01 TurquoiseHill TRQ 3.29 0.09
Albemarle ALB 115.80 -0.70 BRF BRFS 11.79 -0.01 CanNaturalRes CNQ 30.60 EOG Rscs EOG 95.14 -0.28 HP HPQ 19.10 -0.07 Celgene CELG 135.41 1.31 ON Semi ON 14.95 -0.13
-0.35 Level3Comm LVLT 58.68 0.07 PublicStorage PSA 205.57 2.73 Twitter TWTR 16.09 -0.66
Alcoa AA 36.40 0.76 BT Group BT 20.89 0.25 CanPacRlwy CP 156.37 EQT EQT 63.70 -2.40 s HSBC HSBC 50.09 1.19 Cerner CERN 64.37 -0.23 OpenText OTEX 33.50 -0.22
-1.55 LibertyProperty LPT 42.02 0.12 PulteGroup PHM 24.42 0.07 TylerTech TYL 171.81 1.85
AlexandriaRealEst ARE 121.25 0.85 BakerHughes BHGE 36.89 -0.21 Canon EQT Midstream EQM 77.73 1.28 Halliburton HAL 42.44 -0.49 s CharterComms CHTR 391.91 21.65 PTC PTC 55.19 -0.13
CAJ 34.93 0.14 EliLilly LLY 82.66 -0.44 QuestDiag DGX 108.31 -1.20 TysonFoods TSN 63.36 0.36
Alibaba BABA 154.95 -2.61 Ball BLL 41.90 0.01 CapitalOne COF 86.18 EastmanChem EMN 83.16 0.13 Hanesbrands HBI 22.92 -0.35 CheckPointSftw CHKP 105.78 -0.79 Paccar PCAR 68.45 0.27
1.21 s LincolnNational LNC 73.06 0.25 QuintilesIMS Q 90.55 -0.10 UBS Group UBS 17.43 -0.09
Alleghany Y 613.34 -0.66 s BancoBilbaoViz BBVA 9.08 0.01 Eaton ETN 78.25 -0.18 HarleyDavidson HOG 48.67 -0.19 s ChinaLodging HTHT 101.73 6.56 PacWestBancorp PACW 48.02 0.26
CardinalHealth CAH 77.26 -0.35 s LionsGate A LGF/A 29.40 -0.44 RELX RENX 21.11 0.14 UDR UDR 39.09 -0.23
Allegion ALLE 81.24 -0.16 BancodeChile BCH 85.48 1.17 EatonVance EV 49.09 0.82 Harris HRS 114.47 0.06 CincinnatiFin CINF 76.16 0.35 Paychex PAYX 57.85 0.09
Carlisle CSL 97.59 -0.23 LionsGate B LGF/B 27.51 -0.50 RELX RELX 22.11 0.12 UGI UGI 50.47 0.07
Allergan AGN 252.33 -0.68 BancoMacro BMA 86.81 -1.26 Ecolab ECL 131.67 -0.25 s HartfordFinl HIG 55.00 0.18 Cintas CTAS 134.85 -0.76 PayPal PYPL 58.55 -0.65
CarMax KMX 66.25 -0.54 s LiveNationEnt LYV 37.27 -0.21 RPM RPM 51.87 -0.30 US Foods USFD 28.15 0.06
AllianceData ADS 241.43 0.38 s BcoSantChile BSAC 28.27 0.73 Ecopetrol EC 9.34 -0.01 HealthcareAmer HTA 30.59 0.27 CiscoSystems CSCO 31.45 -0.07 People'sUtdFin PBCT 17.44 0.08
Carnival CCL 66.78 0.38 LloydsBanking LYG 3.52 -0.04 RalphLauren RL 75.65 0.41 UltraparPart UGP 23.67 0.14
AllianceBernstein AB 24.75 0.50 BancoSantander SAN 6.82 -0.02 EdisonInt EIX 78.68 0.43 s Heico HEI 80.37 -0.91 CitrixSystems CTXS 78.98 -0.73 PilgrimPride PPC 24.29 0.07
Carnival CUK 67.28 0.38 s LockheedMartin LMT 292.13 1.72 RaymondJames RJF 83.19 0.30 UnderArmour A UAA 20.02 0.58
AlliantEnergy LNT 40.53 0.06 BanColombia CIB 43.74 -0.26 EdwardsLife EW 115.18 -0.33 s Heico A HEI/A 71.05 0.35 Cognex CGNX 95.06 0.26 Priceline PCLN 2028.50 4.44
Caterpillar CAT 113.95 -0.15 s Loews L 48.68 0.42 s Raytheon RTN 171.77 -0.25 UnderArmour C UA 18.11 0.75
AllisonTransm ALSN 37.80 0.16 BankofAmerica BAC 24.12 0.09 EmersonElectric EMR 59.61 0.08 Helmerich&Payne HP 50.62 -1.20 CognizantTech CTSH 69.32 ... Qiagen QGEN 32.84 -0.32
s Allstate Celanese A CE 96.17 1.59 Lowe's LOW 77.40 0.92 RealtyIncome O 57.06 -0.14 Unilever UN 58.17 0.13
ALL 91.00 0.50 BankofMontreal BMO 75.87 0.16 EnbridgeEnPtrs EEP 15.64 -0.30 Herbalife HLF 66.51 -0.73 Coherent COHR 265.00 -0.75 Qorvo QRVO 68.56 -0.44
Cemex CX 9.71 0.10 LyondellBasell LYB 90.09 0.20 RedHat RHT 98.87 0.36 Unilever UL 56.99 0.19
AllyFinancial ALLY 22.64 -0.05 BankNY Mellon BK 53.03 0.37 Enbridge ENB 41.46 0.36 Hershey HSY 105.31 -0.76 Comcast A CMCSA 40.45 0.93 Qualcomm QCOM 53.19 0.31
M&T Bank MTB 163.15 2.56 RegencyCtrs REG 66.22 0.06 UnionPacific UNP 102.96 -0.34
AlticeUSA ATUS 33.44 0.87 BkNovaScotia BNS 62.31 -0.05 CenovusEnergy CVE 8.41 -0.10 Encana ECA 10.06 -0.10 Hess HES 44.54 -0.26 MGM Resorts MGM 32.93 -0.21 RegionsFin RF 14.60 0.10 UnitedContinental UAL 67.68 -0.20 CommerceBcshrs CBSH 58.04 0.53 RandgoldRscs GOLD 92.94 0.22
Altria MO 64.97 -1.97 Barclays BCS 10.73 -0.09 Centene CNC 79.42 -3.27 EnelAmericas ENIA 10.00 -0.29 HewlettPackard HPE 17.51 ... MPLX MPLX 36.35 0.38 s ReinsuranceGrp RGA 140.20 1.00 UnitedMicro UMC 2.26 -0.03 CommScope COMM 36.78 -0.16 RegenPharm REGN 491.62-17.09
AlumofChina ACH 15.80 0.51 Bard CR BCR 320.60 0.22 CenterPointEner CNP 28.19 0.05 EnelGenChile EOCC 23.32 0.08 Hilton HLT 62.53 0.07
MSCI MSCI 108.95 -1.42 RenaissanceRe RNR 146.91 1.97 UPS B UPS 110.29 0.63 Copart CPRT 31.49 -0.46 RossStores ROST 55.32 0.45
Ambev ABEV 6.08 0.03 BarrickGold ABX 16.91 0.04 CentraisElBras EBR 4.31 -0.10 EnergyTrfrEquity ETE 17.67 -0.18 HomeDepot HD 149.60 1.52
Macerich MAC 57.39 -0.46 RepublicServices RSG 64.22 -0.08 UnitedRentals URI 118.96 -0.77 CoStarGroup CSGP 275.55 1.34 RoyalGold RGLD 86.66 0.05
Ameren AEE 56.10 -0.06 BaxterIntl BAX 60.48 -0.25 CenturyLink CTL 23.27 -0.01 EnergyTransfer ETP 20.69 0.11 HondaMotor HMC 28.02 0.36
MacquarieInfr MIC 75.81 0.09 ResMed RMD 77.12 -0.27 US Bancorp USB 52.78 0.21 Costco COST 158.51 5.62 Ryanair RYAAY 113.33 -2.02
AmericaMovil AMX 17.68 -0.26 BectonDickinson BDX 201.40 -0.58 s Chemours CC 47.61 -0.48 EnLinkMidPtrs ENLK 16.53 -0.07 Honeywell HON 136.12 -0.67
Macy's M 23.75 -0.18 RestaurantBrands QSR 59.58 -0.70 US Steel X 23.49 0.51 Ctrip.com CTRP 59.73 0.02 SBA Comm SBAC 137.55 -0.09
AmericaMovil A AMOV 17.62 -0.14 Berkley WRB 68.97 0.01 Chevron CVX 109.19 1.07 Entergy ETR 76.72 0.47 HormelFoods HRL 34.17 0.02
MagellanMid MMP 69.76 0.40 RiceEnergy RICE 27.97 -0.93 UnitedTech UTX 118.57 -0.30 DISH Network DISH 64.03 0.09 SEI Investments SEIC 56.51 0.37
AmCampus ACC 47.94 0.12 BerkHathwy A BRK/A 2627861760.00 ChinaEastrnAir CEA 27.65 -0.20 EnterpriseProd EPD 27.20 0.10 DR Horton DHI 35.69 -0.16
MagnaIntl MGA 47.69 -0.05 s RioTinto RIO 47.38 0.77 UnitedHealth UNH 191.81 0.66 DentsplySirona XRAY 62.03 -0.62 Sina SINA 94.81 0.21
AEP AEP 70.54 0.11 BerkHathwy B BRK/B 174.97 0.97 ChinaLifeIns LFC 15.88 -0.07 EnvisionHlthcr EVHC 56.43 0.27 HostHotels HST 18.66 -0.05
Manpower MAN 107.15 1.24 RobertHalf RHI 45.25 0.43 UniversalHealthB UHS 110.83 -0.67 DexCom DXCM 66.61 -0.44 SS&C Tech SSNC 38.76 -0.45
AmericanExpress AXP 85.23 0.43 BerryGlobal BERY 56.08 0.05 ChinaMobile CHL 53.43 0.01 Equifax EFX 145.44 0.35 HuanengPower HNP 28.45 0.37
ManulifeFin MFC 20.62 0.17 Rockwell ROK 165.03 0.56 s UnumGroup UNM 50.13 0.33 DiamondbackEner FANG 95.88 -0.77 SVB Fin SIVB 178.44 1.45
AmericanFin AFG 101.40 0.30 BestBuy BBY 58.34 0.70 ChinaPetrol SNP 76.19 -0.31 EquityLife ELS 87.30 -0.38 Hubbell HUBB 118.79 -0.71
MarathonOil MRO 12.23 -0.13 RockwellCollins COL 106.53 -7.20 VEREIT VER 8.31 0.04 DiscoveryComm A DISCA 24.60 -2.20 Sabre SABR 22.13 0.32
AmerHomes4Rent AMH 23.01 -0.10 Bio-RadLab A BIO 235.63 -0.73 ChinaSoAirlines ZNH 38.13 -0.69 EquityResdntl EQR 68.06 0.35 Humana HUM 231.20 -1.88
VF t DiscoveryComm C DISCK 23.13 -2.37 ScrippsNetworks SNI 87.41 0.50
AIG AIG 65.45 0.18 ChinaTelecom CHA 47.77 -0.30 MarathonPetrol MPC 55.99 1.01 RogersComm B RCI 52.00 0.23 VFC 62.19 0.34
BlackKnightFin BKFS 42.50 ... EssexProp ESS 261.70 -2.96 HuntingtonIngalls HII 206.11 0.46
s Markel DollarTree DLTR 72.08 0.28 Seagate STX 32.96 0.35
MKL 1071.51 9.95 Rollins ROL 43.41 -0.12 Visa V 99.56 0.41
AmerTowerREIT AMT 136.33 -2.01 BlackRock BLK 426.53 2.53 ChinaUnicom CHU 14.58 -0.16 s EsteeLauder EL 98.99 -0.01 Huntsman HUN 26.62 -0.32 E*TRADE ETFC 41.00 -0.02 SeattleGenetics SGEN 50.50 -0.68
Marsh&McLennan MMC 77.97 -0.71 RoperTech ROP 232.46 0.12 VailResorts MTN 210.76 -1.17
AmerWaterWorks AWK 81.10 0.05 BlackstoneGroup BX 33.45 -0.08 Chipotle CMG 343.77 -6.73 EverestRe RE 262.39 2.53 HyattHotels H 55.57 0.14 EastWestBancorp EWBC 56.98 0.36 Shire SHPG 167.54 -0.75
MartinMarietta MLM 226.43 -0.07 RoyalBkCanada RY 74.56 -0.06 Vale VALE 10.03 0.36
Amerigas APU 45.56 0.46 BlockHR HRB 30.50 0.27 Chubb CB 146.46 1.11 EversourceEner ES 60.79 0.26 ICICI Bank IBN 9.31 0.04 eBay EBAY 35.73 -0.21 SignatureBank SBNY 138.58 2.05
Masco MAS 38.13 -0.44 RoyalBkScotland RBS 6.64 0.05 ValeantPharm VRX 16.46 -0.38
Ameriprise AMP 144.88 0.43 BoardwalkPipe BWP 16.74 -0.46 ChunghwaTelecom CHT 33.82 -0.36 s Exelon EXC 38.34 -0.06 s ING Groep ING 18.73 0.07 EchoStar SATS 60.73 -0.40 SiriusXM SIRI 5.86 0.05
Mastercard MA 127.80 -0.11 RoyalCaribbean RCL 113.07 -0.32 ValeroEnergy VLO 68.97 2.28
AmerisourceBrgn ABC 93.82 -0.15 s Boeing BA 242.46 1.19 Church&Dwight CHD 53.35 0.05 ExtraSpaceSt EXR 79.50 1.58 Invesco IVZ 34.77 0.41 ElectronicArts EA 116.74 -1.51 Skyworks SWKS 104.87 -0.89
McCormick MKC 95.30 -0.22 s RoyalDutchA RDS/A 56.53 0.79 Vantiv VNTV 63.55 -0.47
Ametek AME 61.58 -0.27 BorgWarner BWA 46.74 -0.17 Cigna CI 173.56 -0.41 ExxonMobil XOM 80.04 0.44 IDEX IEX 116.54 -0.07 s Equinix EQIX 450.73 2.83 Splunk SPLK 60.01 -0.05
McCormickVtg MKC/V 95.22 0.22 RoyalDutchB RDS/B 57.86 0.89 VarianMed VAR 97.12 -0.38
Amphenol APH 76.62 0.49 BostonProperties BXP 120.91 -1.42 CimarexEnergy XEC 99.03 0.69 FMC FMC 76.38 -0.27 IllinoisToolWks ITW 140.71 -0.12 Ericsson ERIC 6.42 0.08 Staples SPLS 10.15 0.01
McDonalds MCD 155.14 -0.71 SAP SAP 105.85 -0.21 Vedanta VEDL 17.60 0.21
AnadarkoPetrol APC 45.67 -0.65 BostonScientific BSX 26.62 -0.39 Citigroup C 68.45 1.02 FactSet FDS 167.22 2.23 Infosys INFY 15.80 0.09 ErieIndemnity A ERIE 127.46 -1.24 Starbucks SBUX 53.98 -0.02
McKesson MCK 161.87 -0.64 S&P Global SPGI 153.59 0.12 VeevaSystems VEEV 63.76 0.13
AB InBev BUD 120.66 -0.52 Braskem BAK 24.02 -0.13 CitizensFin CFG 35.08 0.32 FederalRealty FRT 132.63 -0.18 Ingersoll-Rand IR 87.88 -0.66 Exelixis EXEL 27.11 -0.52 SteelDynamics STLD 35.41 0.26
Medtronic MDT 83.97 -0.32 SINOPECShanghai SHI 57.28 0.29 Ventas VTR 67.35 0.23
AnnalyCap NLY 12.03 0.10 Bristol-Myers BMY 56.90 1.63 Clorox CLX 133.49 0.72 FedEx FDX 208.03 -0.01 Ingredion INGR 123.32 0.57 Expedia EXPE 156.47 -3.03 Stericycle SRCL 77.08 1.15
Merck MRK 63.88 -0.23 SK Telecom SKM 27.26 -0.25 Verizon VZ 48.40 0.46
AnteroMidstream AM 34.69 0.59 BritishAmTob BTI 62.52 -2.41 Coach COH 47.14 -1.55 Ferrari RACE 105.19 -0.58 ICE ICE 66.71 0.34 ExpeditorsIntl EXPD 58.88 0.10 Symantec SYMC 30.99 -0.04
s FiatChrysler FCAU 12.09 MetLife MET 55.00 -0.25 SLGreenRealty SLG 103.27 0.02 Vipshop VIPS 12.30 -0.01
AnteroResources AR 20.62 -0.48 BrixmorProp BRX 19.59 0.09 Coca-Cola KO 45.84 -0.17 0.15 InterContinentl IHG 56.76 0.14
ExpressScripts ESRX 62.64 -0.26 Synopsys SNPS 76.57 0.14
MettlerToledo MTD 573.08 -4.98 Salesforce.com CRM 90.80 0.18 VistraEnergy VST 16.43 ...
Anthem ANTM 186.21 -1.58 BroadridgeFinl BR 75.86 0.40 Coca-Cola Euro CCE 43.23 -0.05 FibriaCelulose FBR 10.57 -0.06 IBM IBM 144.67 0.38
F5Networks FFIV 120.75 -0.97 TD Ameritrade AMTD 45.73 -0.02
s FidelityNatlFin FNF 48.86 MichaelKors KORS 36.44 -0.11 Sanofi SNY 47.36 -0.20 VMware VMW 92.71 0.41
Aon AON 138.17 -0.50 BrookfieldMgt BAM 38.89 0.19 Coca-Cola Femsa KOF 84.98 -1.46 0.50 IntlFlavors IFF 133.18 0.03
Facebook FB 169.25 -3.20 TESARO TSRO 127.66 -6.49
s FNFV Group FNFV 17.25 MidAmApt MAA 103.53 -0.18 Sasol SSL 30.14 -0.21 VornadoRealty VNO 79.35 0.39
Apache APA 49.48 -0.53 BrookfieldInfr BIP 40.46 0.19 Colgate-Palmolive CL 72.20 -0.34 0.20 IntlPaper IP 54.98 0.24
MitsubishiUFJ MTU 6.37 0.07 t Scana SCG 64.37 3.08 VoyaFinancial VOYA 39.24 0.24 Fastenal FAST 42.96 -0.59 T-MobileUS TMUS 61.66 -0.12
MizuhoFin MFG 3.57 ... Schlumberger SLB 68.60 0.14 VulcanMaterials VMC 123.12 -0.88 FifthThirdBncp FITB 26.70 0.32 TRowePrice TROW 82.72 0.37
MobileTeleSys MBT 8.57 -0.09 SchwabC SCHW 42.90 0.35 WABCO WBC 137.57 -0.04 s Fiserv FISV 128.50 2.27 TakeTwoSoftware TTWO 79.48 -0.62

Exchange-Traded Portfolios | WSJ.com/ETFresearch Mobileye MBLY 63.30 -0.03 ScottsMiracleGro SMG 95.99 0.33 WEC Energy WEC 62.97 0.61 Flex FLEX 15.99 -0.30 Tesla TSLA 323.47-11.60
MohawkIndustries MHK 248.99 0.34 SealedAir SEE 43.51 -0.36 W.P.Carey WPC 68.51 0.35 Fortinet FTNT 36.91 -0.56 TexasInstruments TXN 81.38 0.67
MolsonCoors B TAP 88.98 -0.13 SempraEnergy SRE 113.01 -0.03 Wabtec WAB 75.36 0.31 Gaming&Leisure GLPI 37.94 0.29 TractorSupply TSCO 56.12 -0.50
Closing Chg YTD Monsanto MON 116.82 -0.65 SensataTech ST 45.12 0.19 Wal-Mart WMT 79.99 0.18 Garmin GRMN 50.19 -1.13 Trimble TRMB 37.43 ...
Largest 100 exchange-traded funds, latest session ETF Symbol Price (%) (%) Moody's MCO 131.63 -0.58 ServiceCorp SCI 34.73 -0.16 WasteConnections WCN 64.98 -0.08 GileadSciences GILD 76.09 0.15 TripAdvisor TRIP 39.02 -0.36
MorganStanley MS 46.90 0.24 ServiceNow NOW 110.45 -1.20 WasteMgt WM 75.15 0.35 Goodyear GT 31.51 -1.00 21stCenturyFoxA FOXA 29.10 -0.27
SPDR DJIA Tr DIA 218.70 0.31 10.7
Monday, July 31, 2017 Closing Chg YTD Mosaic MOS 24.14 -0.03 ShawComm B SJR 22.27 0.09 Waters WAT 173.44 -0.67 Grifols GRFS 20.95 0.49 21stCenturyFoxB FOX 28.69 -0.22
ETF Symbol Price (%) (%) SPDR S&PMdCpTr MDY 320.50 –0.12 6.2 HD Supply HDS 32.49 0.14 UltaBeauty ULTA 251.21 2.61
Closing Chg YTD MotorolaSolutions MSI 90.68 -0.33 SherwinWilliams SHW 337.27 -5.11 Wayfair W 76.35 -1.85
SPDR S&P 500 SPY 246.77 –0.06 10.4 WellCareHealth WCG 176.99 -2.97 Hasbro HAS 105.88 0.14 UltimateSoftware ULTI 225.71 -1.50
ETF Symbol Price (%) (%) iShMSCIEAFESC SCZ 59.81 0.39 20.0 NRG Energy NRG 24.62 -0.55 ShinhanFin SHG 47.52 0.41
SPDR S&P Div SDY 89.90 0.11 5.1 NTTDoCoMo DCM 23.24 0.01 Shopify SHOP 92.37 -0.61 WellsFargo WFC 53.94 0.64 HenrySchein HSIC 182.21 -0.70 UnitedTherap UTHR 128.40 0.05
0.17 –4.8 iShMSCIEmgMarkets EEM 43.80 0.11 25.1
AlerianMLPETF AMLP 12.00 TechSelectSector XLK 57.16 –0.49 18.2 NVR NVR 2610.44-14.56 SimonProperty SPG 158.50 -2.02 Welltower HCN 73.39 0.32 Hologic HOLX 44.21 0.09 UniversalDisplay OLED 120.60 -0.70
iShMSCIEurozoneETF EZU 41.63 ... 20.3
CnsmrDiscSelSector XLY 91.36 –0.03 12.2 UtilitiesSelSector XLU 53.22 0.34 9.6 NationalGrid NGG 62.51 0.30 SmithAO AOS 53.55 -0.74 WestPharmSvcs WST 88.70 -0.85 JBHunt JBHT 90.71 0.34 VCA WOOF 92.58 -0.01
iShMSCIJapanETF EWJ 54.76 0.33 12.1
CnsStapleSelSector XLP 55.32 –0.04 7.0 VanEckGoldMiner GDX 22.86 –0.22 9.3 NatlOilwell NOV 32.71 -0.40 Smith&Nephew SNN 35.25 -0.13 WestarEnergy WR 50.75 0.19 HuntingtonBcshs HBAN 13.25 0.08 VEON VEON 4.09 -0.04
DBGoldDoubleLgETN DGP 23.93 0.11 18.9 iShNasdaqBiotech IBB 319.09 –0.85 20.2 IAC/InterActive IAC 104.63 -1.58 VeriSign VRSN 101.17 -1.33
VangdInfoTech VGT 146.66 –0.50 20.7 NatlRetailProp NNN 39.98 -0.09 Smucker SJM 121.90 -0.52 WesternGasEquity WGP 42.27 0.75
DBGoldDoubleShrt DZZ 5.66 ... –17.4 iShNatlMuniBdETF MUB 110.87 0.05 2.5 t Snap IdexxLab IDXX 166.46 -1.06 s VeriskAnalytics VRSK 87.26 -0.06
VangdSC Val VBR 124.16 –0.12 2.6 NewOrientalEduc EDU 79.66 -0.18 SNAP 13.67 -0.14 WesternGasPtrs WES 51.93 0.11
DeutscheXMSCIEAFE DBEF 30.13 –0.10 7.4 iShRussell1000Gwth IWF 121.70 –0.31 16.0
VangdDivApp VIG 93.35 0.15 9.6 NY CmntyBcp NYCB 13.13 0.20 SnapOn SNA 154.20 1.77 WesternUnion WU 19.75 0.10 IHSMarkit INFO 46.65 0.12 VertxPharm VRTX 151.82 -2.33
EnSelectSectorSPDR XLE 66.62 0.23 –11.6 iShRussell1000ETF IWB 137.21 –0.08 10.2 s SOQUIMICH SQM 41.11 WestlakeChem WLK 70.36 -0.64 IPG Photonics IPGP 152.64 -1.41 Viacom A VIA 40.50 -0.65
VangdFTSEDevMk VEA 42.51 0.21 16.3 NewellBrands NWL 52.72 0.65 0.30
FinSelSectorSPDR XLF 25.09 0.72 7.9 iShRussell1000Val IWD 117.20 0.15 4.6
VangdFTSE EM VWO 43.01 0.16 20.2 NewfieldExpln NFX 28.73 0.07 Sony SNE 41.07 0.10 WestpacBanking WBK 25.59 -0.08 IcahnEnterprises IEP 53.35 1.31 Viacom B VIAB 34.92 -0.74
GuggS&P500EW RSP 94.16 –0.04 8.7 iShRussell2000Gwth IWO 170.06 –0.46 10.5
VangdFTSE Europe VGK 56.70 0.28 18.3 NewmontMining NEM 37.17 0.11 Southern SO 47.93 0.42 WestRock WRK 57.42 0.10 s Icon ICLR 104.95 2.11 Vodafone VOD 29.68 0.24
HealthCareSelSect XLV 79.89 –0.09 15.9 iShRussell2000ETF IWM 141.51 –0.32 4.9 s NextEraEnergy NEE 146.09 0.97 s SoCopper SCCO 39.34 -0.12 Weyerhaeuser WY 33.02 0.08 Illumina ILMN 173.85 -1.07 WPP WPPGY 101.96 -0.42
VangdFTSEAWxUS VEU 51.72 0.15 17.1
IndSelSectorSPDR XLI 68.31 –0.13 9.8 iShRussell2000Val IWN 119.10 –0.13 0.1 NielsenHoldings NLSN 43.01 1.21 SouthwestAirlines LUV 55.51 -1.05 WheatonPrecMetals WPM 20.31 -0.20 Incyte INCY 133.29 -2.45 WalgreensBoots WBA 80.67 1.05
VangdGrowth VUG 130.27 –0.31 16.9 Weibo WB 76.95 0.60
iShIntermCredBd CIU 110.26 0.01 1.9 iShRussell3000ETF IWV 146.12 –0.06 9.9 Nike NKE 59.05 0.38 SpectraEnerPtrs SEP 45.20 0.15 Whirlpool WHR 177.88 0.12 Intel INTC 35.47 0.16
VangdHlthCr VHT 148.25 –0.21 16.9 s InteractiveBrkrs IBKR 40.05 0.07 WesternDigital WDC 85.12 0.15
iSh1-3YCreditBond CSJ 105.51 0.03 0.5 iShRussellMid-Cap IWR 194.21 –0.08 8.6 NiSource NI 26.06 -0.01 SpectrumBrands SPB 115.44 -1.49 Williams WMB 31.78 -0.21
VangdHiDiv VYM 79.42 0.18 4.8 Intuit INTU 137.21 1.57 WholeFoods WFM 41.76 -0.06
iSh3-7YTreasuryBd IEI 123.88 –0.03 1.1 iShRussellMCValue IWS 84.75 0.02 5.4 NobleEnergy NBL 28.91 -0.09 SpiritAeroSys SPR 60.43 -0.46 WilliamsPartners WPZ 41.43 0.35
s
iShCoreMSCIEAFEETF IEFA 62.60 0.24 16.7 iShS&PMC400Growth IJK 198.13 –0.24 8.7
VangdIntermBd BIV 84.89 0.02 2.2 Nokia NOK 6.39 -0.01 Sprint S 7.98 -0.24 Wipro WIT 6.15 0.05 IntuitiveSurgical ISRG 938.26 -2.94 WillisTwrsWatson WLTW 148.88 -1.24
iShCoreMSCIEmgMk IEMG 52.79 0.08 24.4 iShS&P500Growth IVW 140.42 –0.27 15.3 VangdIntrCorpBd VCIT 88.13 0.02 2.8 NomuraHoldings NMR 5.97 0.03 Square SQ 26.35 0.15 WooriBank WF 51.26 -0.57 IonisPharma IONS 52.40 -0.37 WynnResorts WYNN 129.34 0.74
iShCoreMSCITotInt IXUS 59.40 0.07 17.6 iShS&P500ValueETF IVE 106.42 0.21 5.0 VangdLC VV 113.32 –0.04 10.7 Nordstrom JWN 48.57 0.01 StanleyBlackDck SWK 140.69 0.81 Workday WDAY 102.11 -1.14 JD.com JD 45.17 -0.05 Xilinx XLNX 63.26 -0.41
iShUSPfdStk PFF 39.25 –0.05 5.5 VangdMC VO 145.09 –0.08 10.2 NorfolkSouthern NSC 112.58 -1.65 StarwoodProp STWD 22.04 0.13 Wyndham WYN 104.37 0.75 s JackHenry JKHY 107.32 0.24 Yandex YNDX 28.98 -0.55
iShCoreS&P500ETF IVV 248.46 –0.04 10.4 Zillow A ZG 45.43 0.10
iShTIPSBondETF TIP 113.66 ... 0.4 VangdMC Val VOE 104.61 0.09 7.6 NorthropGrumman NOC 263.13 -0.97 StateStreet STT 93.23 0.06 XPO Logistics XPO 60.11 0.02 JazzPharma JAZZ 153.61 -3.19
iShCoreS&PMdCp IJH 175.49 –0.13 6.1 Zillow C Z 45.16 -0.06
iSh1-3YTreasuryBd SHY 84.58 –0.01 0.2 VangdREIT VNQ 84.26 0.13 2.1 Novartis NVS 85.20 0.45 Statoil STO 18.76 0.15 XcelEnergy XEL 47.31 0.15 JetBlue JBLU 21.93 -0.13
iShCoreS&PSmCpETF IJR 70.81 –0.27 3.0 ZionsBancorp ZION 45.32 0.06
iSh7-10YTreasuryBd IEF 106.85 0.03 1.9 VangdS&P500 VOO 226.64 –0.06 10.4 NovoNordisk NVO 42.40 0.24 Steris STE 81.85 -0.02 Xerox XRX 30.67 0.24 KLA Tencor KLAC 92.63 -1.77
iShS&PTotlUSStkMkt ITOT 56.47 –0.07 10.1
VangdST Bond BSV 80.02 0.01 0.7 Nucor NUE 57.67 0.21 STMicroelec STM 16.85 0.10 Xylem XYL 56.73 -0.20 KitePharma KITE 108.41 -3.02 NYSE AMER
iShCoreUSAggBd AGG 109.65 –0.05 1.5 iSh20+YTreasuryBd TLT 124.04 0.12 4.1
VangdSTCpBd VCSH 80.24 0.02 1.1 NuSTAREnergy NS 43.28 -0.73 Stryker SYK 147.10 -0.70 YPF YPF 20.20 -0.65 KraftHeinz KHC 87.46 -0.18
iShSelectDividend DVY 92.77 0.31 4.7 iShRussellMCGrowth IWP 109.63 –0.15 12.6
VangdSC VB 137.15 –0.16 6.4 OGE Energy OGE 35.86 0.06 SumitomoMits SMFG 7.96 0.37 s YumBrands YUM 75.48 0.48 LKQ LKQ 34.56 0.03 CheniereEnergy LNG 45.20 -0.01
iShEdgeMSCIMinEAFE EFAV 70.52 0.33 15.2 PIMCOEnhShMaturity MINT 101.76 0.01 0.4
ONEOK OKE 56.57 0.11 SunCommunities SUI 89.01 -0.61 YumChina YUMC 35.79 -0.10 LamResearch LRCX 159.46 -2.14 CheniereEnerPtrs CQP 29.35 -0.17
iShEdgeMSCIMinUSA USMV 49.92 0.28 10.4 PwrShQQQ 1 QQQ 143.23 –0.42 20.9 VangdTotalBd BND 81.99 –0.01 1.5
OccidentalPetrol OXY 61.93 -0.80 SunLifeFinancial SLF 38.33 0.02 ZTO Express ZTO 14.98 0.27 LamarAdvertising LAMR 70.57 -0.68 CheniereEnHldgs CQH 26.17 0.17
iShGoldTr IAU 12.22 0.08 10.3 PwrShS&P500LoVol SPLV 45.26 0.20 8.9 VangdTotIntlBd BNDX 54.40 –0.02 0.2
Och-Ziff OZM 3.01 0.05 SuncorEnergy SU 32.62 0.16 ZayoGroup ZAYO 32.79 0.46 s LibertyBroadbandA LBRDA 98.92 4.48 ImperialOil IMO 28.64 -0.35
iShiBoxx$InvGrCpBd LQD 121.11 ... 3.4 PwrShSrLoanPtf BKLN 23.27 –0.09 –0.4 VangdTotIntlStk VXUS 53.72 0.19 17.1
iShiBoxx$HYCpBd HYG 88.91 ... 2.7 SPDRBloomBarcHYBd JNK 37.40 –0.03 2.6 VangdTotalStk VTI 126.79 –0.06 9.9
iShJPMUSDEmgBd EMB 115.26 0.08 4.6 SPDR Gold GLD 120.75 0.05 10.2 VangdTotlWrld VT 69.32 0.01 13.6
iShMBSETF
iShMSCIACWIETF
MBB
ACWI
107.09
67.28
0.03
0.12 13.7
0.7 SchwabIntEquity
SchwabUS BrdMkt
SCHF
SCHB
32.69
59.64
0.31
–0.05
18.1
10.1
VangdValue
WisdTrEuropeHdg
VTV
HEDJ
98.05
62.01
0.18
–0.66
5.4
8.0
New Highs and Lows | WSJ.com/newhighs Stock
52-Wk %
Sym Hi/Lo Chg Stock
52-Wk %
Sym Hi/Lo Chg
iShMSCI EAFE EFA 66.93 0.21 15.9 SchwabUS LC SCHX 58.93 –0.07 10.6 WisdTrJapanHdg DXJ 52.30 0.19 5.6 MitelNetworks MITL 8.54 0.6
The following explanations apply to the New York Stock Exchange, NYSE Arca, NYSE NYSE Arca lows - 20 ModernMediaWt MMDMW
NatlResearch B NRCIB
0.57
53.01
3.6
1.0
MKT and Nasdaq Stock Market stocks that hit a new 52-week intraday high or low in PathS&P500VIXMT VXZ 20.86 -0.6
the latest session. % CHG-Daily percentage change from the previous trading session. NatlWesternLife NWLI 337.16 1.1

Mutual Funds | WSJ.com/fundresearch Fund

Net YTD
NAV Chg %Ret Fund
Net YTD
NAV Chg %Ret Monday, July 31, 2017
DirexAuspiceBroad COM
DirexCSI300CnA CHAD
FranklinShrtDurUS FTSD
23.23 -0.7
34.89 -0.8
96.38 ...
Ollie'sBargain OLLI
Omnicell OMCL
45.94
49.85
-1.5
2.2
OrrstownFinSvcs ORRF 25.55 4.4
IntGrowY 41.16 +0.08 18.7 STBondAdml 10.48 ... 1.4 PwrShDB USDBull UUP 24.04 -0.4 PacificSpecialRt PAACR 0.61 1.6
52-Wk % 52-Wk % 52-Wk %
ProShShtDow30 DOG 16.96 -0.2 PetIQ PETQ 25.44 -0.9
Explanatory Notes Data provided by Parnassus Fds STIGradeAdml 10.70 ... 1.9 Stock Sym Hi/Lo Chg Stock Sym Hi/Lo Chg Stock Sym Hi/Lo Chg
ProShShortEuro EUFX 40.41 -0.1 PwrShGoldDragon PGJ 42.58 0.7
ParnEqFd 42.38 +0.02 8.4 TotBdAdml 10.79 ... 2.8 NRG Yield A NYLD/A 18.36 0.9 DirexJapanBl3 JPNL 59.45 0.9 ProshUltBlmNatGas BOIL 8.13 -8.5 PrincipalShrhldrYd PY 29.65 0.4
Top 250 mutual-funds listings for Nasdaq-published share classes with net assets of
at least $500 million each. NAV is net asset value. Percentage performance figures
PIMCO Fds Instl TotIntBdIdxAdm 21.72 -0.01 0.8 NYSE highs - 132 NatlPrestoInds NPK 114.70 -0.8 DirexIndiaBull3 INDL
NextEraEnergyUn NEEpQ 66.39 0.4 EmgMktInternetEcom EMQQ
91.87
35.42
1.1
0.4
ProShUltShtDow30 SDOW
ProShUltShtAUD CROC
28.81 -1.0
44.05 -0.9
Redfin RDFN 25.11 11.2
AllAsset NA ... NA TotIntlAdmIdx r 28.84 +0.06 18.7 RushEnt A RUSHA 43.55 2.2
are total returns, assuming reinvestment of all distributions and after subtracting Aflac AFL 79.91 0.5 NextEraEnergyUn NEEpR 55.59 0.5 AlphaCloneIntl ALFI 24.54 1.2 ProShUltShDow30 DXD 11.25 -0.5
TotRt 10.27 +0.01 4.1 TotStAdml 61.70 -0.06 11.0 RushEnt B RUSHB 40.99 4.0
annual expenses. Figures don’t reflect sales charges (“loads”) or redemption fees. Aaron's AAN 48.22 -2.7 NextEraEnergy NEE 146.88 0.7 ETRACSMthPay2xLev CEFL 18.85 0.6 ProShUltShEuro EUO 21.53 -1.4
TxMIn r 13.65 +0.03 18.1 SandersonFarms SAFM 131.33 2.0
PIMCO Funds A AffiliatedMgrs AMG 186.46 4.0 NextEraEnergy NEP 41.49 3.0 EthoClimateLeader ETHO 31.69 0.2 ProShrUS MSCI Jpn EWV 32.29 -0.4
NET CHG is change in NAV from previous trading day. YTD%RET is year-to-date 50.63 -0.3
Sigmatron SGMA 8.59 4.6
IncomeFd NA ... NA ValAdml 38.24 +0.06 6.8 Alere ALR Norbord OSB 35.60 5.2 FT PfdSecs FPE 20.20 ... ProShsVIXMTFut VIXM 25.29 -0.7 Sohu.com SOHU 58.72 11.8
return. 3-YR%RET is trailing three-year return annualized. AlgonquinPwr AQN 10.85 -0.4 QuantUSMktNeutral SIZ 20.23 -1.6
PIMCO Funds D WdsrllAdml 66.76 -0.17 8.2 NuvGlblHiIncmFd JGH 17.40 0.4 GlbX ChinaFinls CHIX 16.78 0.7 StateNational SNC 20.95 -0.1
e-Ex-distribution. f-Previous day’s quotation. g-Footnotes x and s apply. j-Footnotes e AlliaBernGHIncFd AWF 13.12 0.8 NuvPfdIncomeOpp JPC 10.60 0.2 GlbX ChinaMatls CHIM 18.93 3.7 US NatGas UNG 6.24 -4.4
IncomeFd NA ... NA WellsIAdml 64.16 +0.02 5.5 AllianzGIConv&Incm NCV 7.25 0.6
StrongbridgeBio SBBP 8.25 16.9
and s apply. k-Recalculated by Lipper, using updated data. p-Distribution costs apply, Orix IX 83.71 4.3 GlbXGuruIntlIndex GURI 15.62 0.5 US3xShrtOilFd USOD 21.43 -4.3 TownSports CLUB 5.65 3.8
PIMCO Funds Instl WelltnAdml 71.57 +0.11 7.5 Allstate ALL 91.25 0.6 VelocityShares3xLg UGAZ 10.47 -13.0
PIMCOCorp&Incm PTY 17.00 0.2 GlbX MSCINorway NORW 12.79 0.3 TriMas TRS 24.55 1.7
12b-1. r-Redemption charge may apply. s-Stock split or dividend. t-Footnotes p and r IncomeFd NA ... NA WndsrAdml 76.03 +0.05 10.7 ArborRealtyPfdC ABRpC 26.68 -1.3 WisdTreeMngdFutStr WDTI 38.59 ...
PIMCODynamicCred PCI 22.99 0.3 GlbXNextEmerging EMFM 22.82 -0.1 Trupanion TRUP 24.92 -2.3
apply. v-Footnotes x and e apply. x-Ex-dividend. z-Footnote x, e and s apply. NA-Not PIMCO Funds P VANGUARD FDS ArmstrongWorld AWI 49.55 9.1 PIMCO DynIncmFd PDI 30.89 0.6 GlbX Permanent PERM 26.69 2.1 WisdTrUSDBull USDU 25.57 -0.3 2U TWOU 51.83 1.4
available due to incomplete price, performance or cost data. NE-Not released by Lipper; IncomeP NA ... NA DivdGro 25.70 +0.06 11.4 AshfordHospPfdG AHTpG 25.20 -0.1 PIMCO IncmStrFdII PFN 10.79 0.1 GlbXSciBetaEurope SCID 27.51 0.3 UFP Tech UFPT 29.00 1.6
data under review. NN-Fund not tracked. NS-Fund didn’t exist at start of period.
Price Funds HlthCare r 213.10 -0.23 18.6
Azul
BWX Tech
AZUL 26.73
BWXT 53.60
4.0
-0.5
POSCO PKX
PSBusinessParks PSB
75.32
134.51
1.8
1.1
GlbXSciBetaJapan SCIJ 30.05 1.0 NYSE American highs - 7 UnityBancorp UNTY 18.60 1.1
GuggBRIC EEB 34.64 0.4 VSE VSEC 52.35 7.3
BlChip 90.54 -0.54 24.7 INSTTRF2020 21.88 ... 8.6 BancoBilbaoViz BBVA 9.09 0.1 PrefApartment APTS 17.40 0.5 GuggChinaAllCap YAO 32.28 0.6
AberdChileFd CH 7.71 2.0
VangdGlblxUS RE VNQI 58.59 ...
BcoSantChile BSAC 28.27 2.7 AberdLatAmEq LAQ 26.50 -0.7
Monday, July 31, 2017 CapApp 28.79 -0.01 9.9 INSTTRF2025 22.06 ... 9.7 PrincipalFin PFG 67.73 -0.9 GuggChinaRE TAO 27.58 0.3 VeriskAnalytics VRSK 88.00 -0.1
BlackRockCorpHiYd HYT 11.37 0.4 CloughGlblOpp GLO 11.20 0.4
Net YTD Net YTD Net YTD EqInc 33.52 +0.06 7.4 INSTTRF2030 22.18 ... 10.6
BlkRkMultiIT BIT 18.49 0.1
Progressive PGR 47.38 -0.2 GuggChinaTech CQQQ 51.90 0.5
EtnVncMA MAB 16.00 1.6 VicShDevEnhVol CIZ 33.35 0.2
Prologis PLD 61.81 -1.2 28.58 1.2
Fund NAV Chg %Ret Fund NAV Chg %Ret Fund NAV Chg %Ret EqIndex 66.42 -0.05 11.4 INSTTRF2035 22.30 ... 11.5 BlkRkSci&Tech BST 24.00 -0.2
GuggUSLCOptVol OVLC HillmanGroupPfd HLMp 36.95 -0.2 WebMD WBMD 66.45 0.1
Prudential PUK 49.04 2.2 GuggUltraShrtDur GSY 50.34 ... WillisTwrsWatson WLTW 151.02 -0.8
American Century Inv TotRetBdN NA ... NA Fed TF A p 12.06 ... 2.7 Growth 65.83 -0.36 23.6 INSTTRF2040 22.42 ... 12.4 Boeing BA 246.49 0.5 Raytheon RTN 173.95 -0.1 HartfordMultiDvxUS RODM 27.89 0.3
22ndCentury XXII 2.07 ...
INSTTRF2045 22.52 ... 12.8 23.99 0.4 WellsFargoIncOpp EAD 8.79 0.8
Ultra 41.76 -0.16 19.7 Edgewood Growth Instituti IncomeA p 2.37 ... 5.7 HelSci
InstlCapG
71.75 -0.58 21.4
24.9 IntlVal 37.62 +0.11 18.5
BrookfldRealAssts RA
CNA Fin CNA 52.37 5.3
ReinsuranceGrp RGA
RexfordIndlRealty REXR
140.42
28.54
0.7
1.2
IQRealReturn CPI 27.52 0.1 Nasdaq lows - 64
American Funds Cl A
AmcpA p 30.02 -0.06 11.9
EdgewoodGrInst 28.50 -0.12 28.3
Federated Instl
RisDv A p 57.06 -0.11 9.1
FrankTemp/Franklin C IntlStk
36.52 -0.21
18.62 +0.02 21.8 LifeCon 19.51 +0.01 6.8 CPFLEnergia
CableOne
CPL 17.17
CABO 766.31
0.5
0.2
RioTinto RIO 47.51 1.7
IQS&PHYLowVolBd HYLV
InspireCpBdImp IBD
25.58
29.30
0.4
... NYSE American lows - 2 AC Immune ACIU 6.89 -5.2
RoyalDutchA RDS/A 56.84 1.4 iPathBloomCopperTR JJC 33.11 0.5 0.17 -41.1 ARCAbiopharma ABIO 1.65 -9.8
AMutlA p 39.63 +0.06 8.7 StraValDivIS 6.31 ... 9.1 Income C t 2.40 ... 5.8 IntlValEq 14.90 +0.01 16.3 LifeGro 31.88 +0.01 11.6 Chemours CC 48.65 -1.0
BioTimeWt BTX/WS
ATNI 57.81 -3.7
ScorpioBulkNt19 SLTB 25.45 1.0 iPath MSCI India INP 82.83 0.6 TakungArt TKAT 3.40 -11.4 ATN Intl
BalA p 26.66 -0.02 8.7 Fidelity FrankTemp/Temp A MCapGro 87.81 -0.23 16.5 LifeMod 26.11 +0.01 9.2 CherryHillMtg CHMI 19.24 1.2 ServiceMaster SERV 44.68 8.8 iShCoreMSCIPacific IPAC 55.79 0.4 AcaciaResearch ACTG 3.45 -4.2
BondA p 12.96 ... 2.9 500IdxInst 86.47 -0.06 11.6 GlBond A p 12.12 -0.04 2.7 MCapVal 30.54 -0.06 5.1 PrmcpCor 25.19 -0.07 13.6 ChinaCordBlood CO 12.44 -1.1 SOQUIMICH SQM 41.77 0.7 iShUSAerospace&Def ITA 166.35 -0.5 Nasdaq highs - 89 AmerSoftware AMSWA 9.56 0.1
SelValu r 31.40 -0.01 9.1 ChinaFund CHN 19.64 0.4 SouthernNt2016A SOJB 25.60 0.1 AmerSupercond AMSC 3.18 -4.8
CapIBA p 62.16 +0.02 9.6 500IdxInstPrem 86.47 -0.06 11.6 Growth A p 26.77 +0.08 13.6 N Horiz 52.00 -0.22 20.1 iShEdgeMSCIIntVal IVLU 25.02 0.4
CitigrpCapXIIIPf CpN 27.34 0.9 SoCopper SCCO 39.94 -0.3 AdvAcceltrApp AAAP 48.97 1.7 AntheraPharm ANTH 1.31 -1.4
CapWGrA 50.45 +0.04 16.4 500IdxPrem 86.47 -0.06 11.6 FrankTemp/Temp Adv N Inc 9.51 ... 3.1 STAR 26.20 -0.02 11.4 CohenStrSelPrfInco PSF 28.91 -0.6
iShEdgeMSCIMlIntSC ISCF 29.44 0.5
Sunoco SUN 32.49 -0.2 iShJPM EM LC Bd LEMB 47.98 0.3 AtriCure ATRC 25.18 1.6 ArgosTherap ARGS 0.25 -10.0
EupacA p 54.17 +0.13 22.6 ExtMktIdxPrem r 59.57 -0.11 8.6 GlBondAdv p 12.08 -0.04 2.8 OverS SF r 10.89 +0.03 20.1 STIGrade 10.70 ... 1.9 Colfax CFX 42.75 1.8 TAL Education TAL 157.80 2.7 iShMSCIAustriaCap EWO 22.88 0.2 ADP ADP 121.77 1.3 AvenueTherap ATXI 6.68 -4.8
FdInvA p 60.50 -0.08 12.9 IntlIdxPrem r 41.61 +0.11 17.9 Harbor Funds R2020 22.54 -0.01 10.4 TgtRe2015 15.54 ... 7.1 CousinsProperties CUZ 9.21 2.1 Telus TU 36.39 -0.5 iShMSCIBRICETF BKF 40.62 0.6 AveXis AVXS 94.59 0.7 BisonCapAcqnRt BCACR 0.31 -2.8
TgtRe2020 30.70 ... 8.6 Credicorp BAP 189.83 -2.0 TPG RE Fin TRTX 19.99 0.4 Baidu BIDU 230.00 2.9 BrighthouseFin BHFWV 65.28 -1.9
GwthA p 48.80 -0.18 16.1 TMktIdxF r 71.34 -0.06 11.0 CapApInst 69.95 -0.22 23.5 R2025 17.32 -0.01 11.7 CustomersBncpPfdF CUBIpF 26.40 ...
iShMSCIHongKong EWH 24.34 0.5
TgtRe2025 17.93 ... 9.7 TelecomItalia TI 10.41 2.7 Blackbaud BLKB 93.81 0.5 Broadvision BVSN 3.85 1.2
HI TrA p 10.51 ... 5.6 TMktIdxPrem 71.33 -0.06 11.0 IntlInst r 69.30 -0.14 18.6 R2030 25.44 -0.02 12.9 iShMSCIItalyCapped EWI 29.83 0.7
DDR PfdA DDRpA 27.00 -0.3 TempltnDrgn TDF 21.59 0.2 BldrsDev100 ADRD 22.58 0.1 BuffWildWngs BWLD 105.10 -0.9
ICAA p 39.57 -0.07 10.1 USBdIdxInstPrem 11.63 ... 2.7 Harding Loevner R2035 18.55 -0.02 13.9 TgtRe2030 32.30 ... 10.6 DTE EnergyDebF DTY 27.76 0.2 Tesoro TSO 99.76 1.7
iShMSCIPolandCap EPOL 25.84 1.1
BldrsEmg50 ADRE 41.83 0.1 CafePress PRSS 1.75 -2.5
TgtRe2035 19.78 ... 11.5 25.10 1.8 iShMSCISpainCapped EWP 34.22 ...
IncoA p 22.87 +0.02 7.1 Fidelity Advisor I IntlEq NA ... NA R2040 26.61 -0.02 14.6 Dana DAN Tri-Continental TY 25.12 0.3 CBOE Holdings CBOE 94.70 1.1 Cheesecake CAKE 47.35 -0.2
KraneBoseraChinaA KBA 32.06 0.8
Invesco Funds A Value 37.09 -0.01 10.2 TgtRe2040 33.97 +0.01 12.4 Deere DE 129.54 -0.5 TriNet TNET 35.14 3.6 CalamosConvOp CHI 11.69 0.3 ChinaRecycling CREG 1.12 -4.5
N PerA p 42.66 -0.08 20.7 NwInsghtI 31.40 -0.10 17.6 DeutscheHiIncmOpps DHG 15.13 0.3 MadronaIntl FWDI 28.72 1.3
CCIH 0.81 -3.6
TgtRe2045 21.31 +0.01 12.8 UMHPropPfdC UMHpC 25.33 0.4 OppGlbESGRevenue ESGF 29.36 0.2 CalamsGlblDynInc CHW 8.93 0.2 ChinaCache
NEcoA p 43.53 -0.06 21.1 Fidelity Freedom EqIncA 11.04 +0.01 5.3 Principal Investors Diageo DEO 130.84 0.4 CalamosGlblTot CGO 13.66 0.9 Clearfield CLFD 11.50 -3.8
UNM 50.67 0.7
NA TgtRe2050 34.27 ... 12.8 UnumGroup OppenheimerLgCpRev RWL 47.18 ...
NwWrldA 62.57 +0.12 21.6 FF2020 16.24 -0.01 10.1 John Hancock Class 1 DivIntlInst NA ... Dillard's DDS 83.44 -6.4
Viad VVI 54.10 2.3 CharterComms CHTR 399.95 5.8 CyberOptics CYBE 15.55 -4.3
TgtRetInc 13.38 ... 5.3 DoubleLineIncm DSL 21.35 0.6 PIMCOEnhShMaturity MINT 101.77 ...
SmCpA p 53.67 -0.04 16.7 FF2025 14.03 ... 10.8 LSBalncd 15.57 ... 10.0 Prudential Cl Z & I WGLHoldings WGL 86.00 -0.1 ChinaLodging HTHT 102.33 6.9 CyclacelPharm CYCC 1.60 ...
PwrShAerospace PPA 48.15 -0.4
TxExA p 12.98 ... 3.7 FF2030 17.48 -0.01 12.6 LSGwth 16.52 -0.01 12.4 TRBdZ 14.50 ... 4.7 TotIntBdIxInv 10.86 -0.01 0.8 EtnVncFR2022 EFL 10.06 -0.1
WarriorMetCoal HCC 21.98 2.9 PwrShCEF Incm PCEF 24.03 0.1
CytRx CYTR 1.00 17.9 DestMaternity DEST 1.46 -10.5
WellsI 26.49 +0.01 5.4 EmbotellAndinaB AKO/B 27.93 1.3
WstAstPrmBdFd WEA 14.38 0.6 DBVTechnologies DBVT 45.06 1.6 DianaContainer DCIX 0.48 -29.7
WshA p 43.38 +0.10 9.5 FreedomK2020 15.11 ... 10.1 John Hancock Instl Schwab Funds EmbotellAndinaA AKO/A 24.93 5.6 PwrShDB USDBear UDN 22.42 0.4
22.85 -9.3
Welltn 41.44 +0.06 7.4 YumBrands YUM 75.68 0.6 Equinix EQIX 451.29 0.6 DiscoveryComm C DISCK
Baird Funds FreedomK2025 15.93 -0.01 10.8 DispValMCI 23.12 -0.02 7.7 S&P Sel 38.40 -0.03 11.6 EmergentBiosol EBS 36.81 -0.1 PwrShDynMedia PBS 29.49 -1.2
EuronetWorldwide EEFT 96.95 1.1 DovaPharm DOVA 18.10 -5.1
WndsrII 37.62 -0.10 8.1 PwrShFTSERAFIDevMk PDN 32.25 0.4
AggBdInst 10.89
CorBdInst 11.25 +0.01
... 3.2
3.6
FreedomK2030 16.47
FreedomK2035 17.30
... 12.7
... 13.9
JPMorgan Funds
MdCpVal L 39.39 +0.02 8.2
TIAA/CREF Funds
EqIdxInst 18.41 -0.02 11.0
VANGUARD INDEX FDS
EnPro
EsteeLauder
NPO
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77.62
99.82
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FSB Bancorp FSBC
51job JOBS
15.25 ... DragonWave
49.44 2.3 EchoGlobalLog ECHO
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Bemis BMS 42.19 -0.4 FirstInternetBncp INBK 33.10 4.9 Egalet EGLT 1.31 -1.5
BlackRock Funds A FreedomK2040 17.33 ... 14.0 JPMorgan I Class IntlEqIdxInst 19.52 +0.04 17.9 FederalSignal FSS 18.64 0.1 ProShGermanSov GGOV 38.71 2.5 3.00 -11.6
ExtndIstPl 193.67 -0.36 8.6 ChannelAdvisor ECOM 10.15 1.0 FT ChinaAlphaDEX FCA 26.13 1.1 Electro-Sensors ELSE
GlblAlloc p 19.94 +0.02 9.7 Fidelity Invest CoreBond 11.64 ... 3.0 Tweedy Browne Fds FiatChrysler FCAU 12.11 1.3 ProShS&P500xTech SPXT 48.80 0.4 16.70 -2.9
SmValAdml 53.34 -0.05 3.4 ChinaDistanceEd DL 7.01 -1.8 FT EM SC Alpha FEMS 39.34 0.5 FiestaRestaurant FRGI
JPMorgan R Class GblValue 28.01 +0.03 11.9 FNFV Group FNFV 17.30 1.2 ProShrUltraDow30 DDM 103.26 0.6 7.37 -2.6
BlackRock Funds Inst Balanc 24.13 -0.03 10.4 DHI Group DHX 2.15 -8.3 FT LC US Equity RNLC 20.11 0.1 ForesightAuto FRSX
TotBd2 10.75 ... 2.7 FidelityNatlFin FNF 48.86 1.0 DIN 40.14 0.4
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EqtyDivd 22.19 +0.04 8.2 BluCh 83.20 -0.63 23.5 CoreBond 11.66 ... 3.0 VANGUARD ADMIRAL DineEquity
ProShUltMSCIEAFE EFO 119.25 0.9
TotIntl 17.24 +0.03 18.6 FidelityNtlInfo FIS 91.56 0.4 DrReddy'sLab RDY 35.89 -0.5 Fiserv FISV 128.57 1.8 GSV Capital GSVC 3.98 -1.7
GlblAlloc 20.05 +0.02 9.8 Contra 118.28 -0.51 20.9 Lazard Instl 500Adml 228.34 -0.17 11.6 FT InterDurPfd FPF 24.90 0.4 ProShUltDow30 UDOW 65.27 1.1
TotSt 61.68 -0.06 11.0 Dril-Quip DRQ 42.60 -1.8 FoxFactory FOXF 38.75 -0.3 Gridsum GSUM 7.20 1.8
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RenaissanceIntlIPO IPOS 21.90 1.2 GemphireTherap GEMP 21.47 2.2 InVivoTherap NVIV 1.65 -26.5
VANGUARD INSTL FDS SPDRBloomBarCvSecs CWB 51.63 -0.4
StratIncOpptyIns 9.94 ... 3.1 CpInc r 10.18 -0.01 8.3 Loomis Sayles Fds CAITAdml 11.83 ... 4.2 Fortis FTS 36.60 0.6 Fluor FLR 41.78 -2.6 GeneralComm A GNCMA 43.63 4.2 iShMSCIEMxChina EMXC 50.57 -0.2
BalInst 33.19 -0.02 7.7 GabelliConv GCV 5.40 0.4 SPDRBloomBarInCpBd IBND 34.70 0.6 LE 12.90 1.9
Del Invest Instl DivIntl 40.01 +0.04 20.2 LSBondI 14.34 ... 7.4 CapOpAdml r144.27 -0.72 16.1 ForumEnergyTech FET 13.20 -2.6 GlbXMSCISuperDiv EFAS 18.35 0.4 Lands'End
DevMktsIndInst 13.66 +0.02 18.1 GabelliGlbMultMed GGT 9.56 2.6 GlassBridgeEnts GLA 2.44 -18.3
SPDREUROSTOXXSC SMEZ 59.54 0.5 GlbX Robotics&AI BOTZ 19.95 -0.2 LeggMasonSCQualVal SQLV 24.91 0.2
Value 20.38 -0.01 4.5 GroCo 169.27 -1.27 23.8 Lord Abbett A EMAdmr 35.70 +0.08 20.8 SPDRMSCIACWIIMI ACIM 73.58 0.2
DevMktsInxInst 21.36 +0.04 18.1 GasLog GLOG 18.35 0.8 GlobalShipLease GSL 0.97 -12.4 GlbX Yieldco YLCO 12.71 0.1 MabVaxTherap MBVX 0.74 -5.9
Dimensional Fds GrowCoK 169.19 -1.27 23.8 ShtDurIncmA p 4.29 -0.01 1.7 EqIncAdml 73.08 +0.03 8.3 GreatPlainsEner GXP 30.89 0.4 SPDRS&PGlbInfr GII 52.17 0.7 HelenofTroy HELE 100.95 0.9 Macrogenics MGNX 16.49 -2.1
ExtndInst 78.48 -0.14 8.6 Mednax MD 46.43 -1.6
SchwabFundIntLrgCo FNDF 28.97 0.5
5GlbFxdInc 11.00 ... 2.0 InvGB 7.93 ... 3.0 Lord Abbett F ExplrAdml 90.29 -0.20 12.3 HFF HF 37.23 -0.7 NavigantConsult NCI 16.64 -14.4 HeritageCrystal HCCI 19.40 1.3 MagneGas MNGA 0.55 -3.3
GrwthInst 67.04 -0.22 17.7
HSBC 50.18 2.4 SchwabFundIntlSmCo FNDC 33.84 0.3
EmgMktVa 29.56 +0.09 23.7 InvGrBd 11.30 ... 3.3 ShtDurIncm 4.29 ... 2.0 ExtndAdml 78.48 -0.15 8.5 HSBC OilStatesIntl OIS 24.20 -6.4 Heska HSKA 115.00 2.6 MicronetEnertec MICT 0.85 -3.3
InPrSeIn 10.50 -0.01 1.4 HancockInvestors JHI 18.29 0.5 PrecisionDrilling PDS 2.87 -3.3 SPDR DJIA Tr DIA 219.03 0.3 Icon ICLR 109.32 2.1 MicroStrategy MSTR 134.17 -3.9
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InstPlus 225.34 -0.16 11.6 Snap SNAP 13.10 -1.0 iRobot IRBT
IntlVal 19.03 +0.09 15.6 MagIn 98.57 -0.34 14.2 TotRetBdI 10.67 -0.01 2.6 HlthCareAdml r 89.89 -0.10 18.6 Heico HEI 81.69 -1.1 SonocoProducts SON 48.41 -0.2 SprottPhysPlatinum SPPP 8.41 0.5 iShESG1-5YCpBd SUSB 25.18 0.2 Neuralstem CUR 1.50 -6.6
InstTStPlus 55.38 -0.05 11.0 USGlbGOGold GOAU 12.44 -0.2
IntSmCo 20.68 +0.06 20.5 OTC 105.68 -0.93 26.8 TRBdPlan 10.04 -0.01 2.6 HYCorAdml r 5.99 ... 6.0 ING Groep ING 18.75 0.4 StewartInfo STC 38.76 -0.9 iShIndia50ETF INDY 35.82 0.4 NovusThera NVUS 3.50 -2.4
MidCpInst 39.70 -0.03 11.0 IndependenceHldg IHC 22.30 1.4 US3xOilFd USOU 29.87 7.3 iShMSCIChinaETF MCHI 59.75 0.3 Okta OKTA 21.66 -1.9
IntSmVa 22.55 +0.06 18.9 Puritn 22.65 -0.03 10.9 MFS Funds Class I InfProAd 25.79 ... 1.5 MidCpIstPl 195.78 -0.16 TaubmanCtrs TCO 56.14 -1.1
11.0 IndiaFund IFN 28.67 0.6 Veritiv VRTV 37.10 -2.5 VanEckCSI300 PEK 44.27 0.4 iShMSCIEAFESC SCZ 59.85 0.4 OncoMedPharm OMED 3.13 -4.4
US CoreEq1 20.98 -0.02 9.7 SrsEmrgMktF 20.06 ... 27.4 ValueI 39.46 +0.05 9.7 IntlGrAdml 88.14 -0.02 30.9 SmCapInst 65.70 -0.14 INST 32.55 2.1 VanEckEM AggBd EMAG 21.96 0.8
6.9 Instructure WorldFuelSvcs INT 32.28 -5.8 iShMSCIEuropeFinls EUFN 23.25 0.3 OpGen OPGN 0.28 -7.2
US CoreEq2 19.96 -0.01 8.0 SrsInvGrdF 11.30 ... 3.3 MFS Funds Instl ITBondAdml 11.47 ... 3.6 SmCapIstPl 189.65 -0.39 InterXion INXN 48.04 0.1 VanEckFallAnglHYBd ANGL 30.02 -0.1 iShMSCIEuropeSmCp IEUS 54.30 0.6 OrganovoHoldings ONVO 2.29 ...
6.9
US Small 34.60 -0.03
US SmCpVal 36.87 -0.12
2.7
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TotalBond 10.70 ... 3.2 IntlEq
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24.50 +0.08 20.9 ITIGradeAdml 9.84 +0.01
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3.8 STIGradeInst 10.70
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US TgdVal 24.02 -0.05 0.6 Biotech r 216.69 -3.11 24.5 GlbDiscA 33.04 ... 8.1 MidCpAdml 179.70 -0.15 11.0 TotBdInst2 10.75 ... 2.8 La-Z-Boy LZB 34.10 2.4 AdvShCornerSC SCAP 32.73 0.2 VanEckPoland PLND 19.64 0.7 KeyTechnology KTEC 14.95 10.1 PrimaBiomed PBMD 1.55 -7.6
USLgVa 37.42 +0.08 7.6 First Eagle Funds Oakmark Funds Invest MuHYAdml 11.34 ... 5.3 TotBdInstPl 10.79 LincolnNational LNC 73.34 0.3 ArrowQVMEquityFact QVM 25.58 0.3 VanEckRareEarth REMX 22.00 3.2 LeggMasonDev DDBI 28.79 0.2 ProteostasisTher PTI 2.80 -7.5
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Balanced 107.51 +0.22 6.7 Oakmark 80.44 +0.13 11.0 MuLTAdml 11.65 ... 4.5 TotIntlInstIdx r115.32 +0.22 LiveNationEnt LYV 37.82 -0.6 ColumbiaSustIntl ESGN 29.63 1.1 WisdTrBrazilReal BZF 18.94 0.6 LendingTree TREE 225.15 1.9 QuestResource QRHC 1.59 -2.2
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B10 | Tuesday, August 1, 2017
FRANCK ROBICHON/EUROPEAN PRESSPHOTO AGENCY
A debate over a technical issue split the bitcoin community.
Bitcoin Rival
Arises From
Sector Spat
BY PAUL VIGNA
This week, after years
of industry infighting, the dig-
ital currency bitcoin is set to
get a new competitor: itself.
A splinter group of bitcoin
developers is launching a new
version of the currency with a
different configuration, the
latest twist in a political quar-
rel for control over the net-
work that controls bitcoin’s
trading.
But the new experiment,
known as Bitcoin Cash, is
causing confusion as ex-
changes and brokerages
scramble to deal with the new
currency.
The new bitcoin is slated to
be launched Tuesday, a retalia-
tion against a somewhat con-
troversial July agreement in
the industry that concerned
expanding the bitcoin trading
network.
As a result, there will now
be two competing versions of
bitcoin, both vying for the
support of investors, develop-
ers and miners. Miners are
The cryptocurrency,
Bitcoin Cash, is set
to begin competing
with bitcoin Tuesday.
companies and individuals
that process bitcoin transac-
tions.
While bitcoin is known as a
currency, its core is software,
an open-source project ini-
tially supported by volunteers
and technology enthusiasts.
Because the software is open-
source, anybody can copy it
and release their own version.
The prospects for the new
bitcoin are uncertain, and it
isn’t clear who exactly is be-
hind it.
A website for Bitcoin Cash
says it is backed by a “group
of miners, developers, inves-
tors, and bitcoin users” who
previously were pushing for a
split before the July compro-
mise.
One large mining-equip-
ment company, Bitmain, based
in Beijing, was spearhead-
ing the split effort. The firm is
still supporting the July com-
promise but said it did “not
rule out” supporting Bitcoin
Cash, assuming it survives.
Additionally, Roger Ver, a
Blackstone Energy to Debt Ceiling Isn’t Scaring Options Traders
Buy Stake in Pipeline
BY ALI STRATTON
Energy Transfer Partners
LP said Blackstone Energy
Partners will acquire a 32.4%
stake in the Rover Pipeline
project, which has faced envi-
ronmental scrutiny due to
spills of drilling mud in Ohio
wetlands earlier this year.
Blackstone Group LP’s en-
ergy-focused private-equity
fund will pay $1.57 billion for
a 49.9% stake in ET Rover
Pipeline LLC, which is a sub-
sidiary of Energy Transfer and
majority owner of the pipeline.
The transaction is expected
to close in the fourth quarter.
Energy Transfer Partners said
it would use the deal’s pro-
ceeds to pay down debt and
fund growth projects.
The $4.2 billion Rover Pipe-
line, which is still under con-
struction, has been beset by
multiple industrial spills and
prominent bitcoin investor,
has been publicly supporting
Bitcoin Cash.
Mr. Ver said he didn’t know
about Bitcoin Cash until it was
announced July 22, but is en-
thusiastic about its prospects.
“I think it fits the original vi-
sion of bitcoin,” he said.
One exchange, China-based
ViaBTC, which is partially
owned by Bitmain, is already
allowing users to trade Bitcoin
Cash in accounts that would
be redeemable once the cur-
rency goes live.
In very illiquid trading—
fewer than 1,900 bitcoins over
24 hours—the price of Bitcoin
Cash was at 0.0951 bitcoin, or
about $266, on Monday morn-
ing. Bitcoin was trading at
$2,801.
It is unclear what volume
and prices will look like once
live trading begins; it is sched-
uled for 8:20 a.m. EDT on
Tuesday.
In the meantime, bitcoin ex-
changes are scrambling to fig-
ure how they will either sup-
port Bitcoin Cash or won’t,
and protect their customer ac-
counts at the same time.
On Thursday, the U.S. ex-
change Coinbase said in a
statement that it wouldn’t
support Bitcoin Cash, on the
reasoning that it wasn’t clear
how long the rebel currency
would last and what market
value it would have.
It advised customers who
wanted to access Bitcoin Cash
to withdraw their bitcoin be-
fore July 31.
Another exchange, San
Francisco-based Kraken, con-
ditionally said it would sup-
port Bitcoin Cash trading, as-
suming it was successfully
launched, and would credit its
customer accounts with an
equal amount of Bitcoin Cash.
The group behind Bitcoin
Cash is copying bitcoin’s soft-
ware, adding a couple of new
features, and releasing it to
the public. It will be an almost
identical copy, and anyone
who has a bitcoin balance
can automatically hold the ex-
act same amount of Bitcoin
Cash.
The balances from the orig-
inal bitcoin to the cryptocur-
rency’s new version will be
copied on a 1:1 basis, and it
will exist as of Aug. 1.
The main difference be-
tween bitcoin and Bitcoin Cash
is how rapidly it trades and
how many trades can happen
in a short amount of time.
other issues as crews work to
prepare it for full service. The
more-than-700-mile pipeline is
expected to carry 3.25 billion
cubic feet of natural gas a day
across West Virginia, Eastern
Ohio, Western Pennsylvania
and Canada.
The Federal Energy Regula-
tory Commission has required
that the pipeline’s operator
take steps to avoid future haz-
ardous-waste contamination
incidents, following the dis-
charge of drilling mud in Ohio.
This year, Blackstone En-
ergy Partners has also in-
vested in oil and gas-shale as-
sets in southern Texas and
acquired EagleClaw, the larg-
est closely held midstream op-
erator in the Permian’s Dela-
ware Basin in western Texas.
Shares of Energy Transfer,
which are down 14% so far this
year, rose 1.3% Monday in af-
ter-hours trading to $20.96.
MONEY & INVESTING
Gas Prices Sink to 5-Month Low
BY ALISON SIDER
Natural-gas prices on Mon-
day had their worst day since
February as traders began to
bet that summer is going to go
out with a whimper.
Natural gas for September
delivery fell 14.7 cents, or 5%,
to $2.794 a million British
thermal units on the New York
Mercantile Exchange. The sell-
off was the largest daily loss
since Feb. 21, pushing natural-
gas prices to a five-month low.
New weather forecasts
raised the prospect that the
summer heat, a major driver of
natural-gas demand, is largely
past. Weather models indicate
that below-normal tempera-
tures could take hold from the
Rocky Mountains to the East
Coast and could persist
Copper Prices Soar, Powered by Steady Chinese Manufacturing
Copper prices rose to two-
year highs Monday after an offi-
cial gauge of manufacturing ac-
tivity in China came in below
expectations but remained in ex-
pansionary territory.
Futures for September deliv-
ery settled up 0.6% at $2.8915 a
pound on the Comex division of
the New York Mercantile Ex-
change, closing at the highest
level since May 2015.
China’s manufacturing pur-
chasing managers index, a gauge
of factory activity, fell to 51.4 in
HSBC Prepares Regular Buybacks
BY MARGOT PATRICK
AND JOANNE CHIU
LONDON—HSBC Holdings
PLC said that it would regu-
larly buy back shares if it has
extra capital, its latest sign of
strength.
HSBC said Monday it will
buy back a further $2 billion in
shares, adding to the $3.5 bil-
lion in stock it repurchased
since last year. The transaction
announced Monday is part of a
new pledge by the bank to reg-
ularly buy back shares if it can,
in contrast to the earlier pur-
chases that were specifically
linked to capital it freed up by
Options show ‘no anxiety’ on any debt-limit turmoil in the Capitol.
* * THE WALL STREET JOURNAL.
through the first half of Au- manager at Kinect Energy.
gust. “We’re kind of past the peak of
“The hottest week of sum- normal summer weather.
mer 2017 is probably behind us That’s not to say we’re totally
at this point,” forecasters at out of the woods—there’s still
Commodity Weather Group the opportunity for heat
wrote Monday. waves, but the market is dis-
Hot weather fuels demand counting that.”
for natural gas in the summer, That follows a similar pat-
as people crank up air condi- tern to last winter, when mar-
tioners and draw more elec- ket participants bet heavily
tricity from a grid increasingly that frigid temperatures would
fed by natural gas. lead to price spikes. But after a
Heat in recent weeks has cold December, the weather
helped drive strong demand at turned milder and natural-gas
times, but natural-gas prices prices sold off sharply.
remained largely range-bound The market may still be
until Monday’s sharp decline. feeling the effects of the rally
July ended up being natural late last year, when the pros-
gas’s worst month since Febru- pect of a cold winter helped
ary, with a drop of nearly 8%. drive natural-gas prices as
“I think you’re seeing a big high as $3.93 per mmBtu.
shift in expectations,” said “Producers hedged to lock
Andy Huenefeld, price-risk in prices, so production is go-
July, falling short of expectations PMI figures and it falls into the
for 51.6 but still signaling expan- same story as the IMF’s adjusted
sion. (Above, a construction site Chinese [growth] forecasts last
in Zhengzhou, China.) Monday,” said Bjarne Schieldrop,
The steady manufacturing SEB Markets’ chief commodities
data built on optimism from in- analyst.
creased Chinese growth fore- As long as the dollar contin-
casts from the International ues to track lower and non-U.S.
Monetary Fund last week, as growth continues to revive, trad-
well as Chinese government re- ers can expect to see increases
marks about the possible curtail- in base-metals prices, Mr. Schiel-
ment of scrap copper imports. drop said.
“Those gains are continuing The WSJ Dollar Index, which
across the board in metals... gauges the dollar against a bas-
thanks to those solid Chinese ket of other currencies, fell 2.3%
selling its large Brazilian unit. ter rose 57% to $3.87 billion
Chief Executive Stuart Gul- from $2.47 billion a year ear-
liver said that HSBC will re- lier. Profit before tax rose 47%
view potential buybacks every to $5.3 billion.
half year and go ahead with Mr. Gulliver, in an interview,
them if it has surplus equity said the bank is seeing the
and nothing more attractive to fruits of the strategy he laid
invest in. out in June 2015, including
The bank has been adding getting more cross-unit busi-
capital through profit as well ness from its 38 million cus-
as by shrinking in some areas, tomers.
and analysts had expected Revenue that can be attri-
more cash returns. Factors buted to cross-selling rose to
helping the bank in recent $5.9 billion in the second half
quarters include lower bad from $5 billion in the first half
loans and rising interest rates of 2016, he said.
on an expanding deposit base. Analysts covering banks
On Monday, the bank said such as HSBC Holdings, J.P.
net profit for the second quar- Morgan Chase & Co. and Citi-
BY CHRIS DIETERICH
The bond market recently
appeared jittery about a fight
on Capitol Hill over raising the
debt ceiling, but options trad-
ers don’t seem all that wor-
ried.
A reading of the options
market shows investors expect
little uptick in S&P 500 volatil-
ity in October, after extraordi-
nary steps taken to pay the
U.S. government’s bills are ex-
pected to run out.
Options prices can be seen
as gauges of demand for port-
folio insurance. For example,
REYNOLDS/EUROPEAN PRESSPHOTO AGENCY
the widely quoted CBOE Vola-
tility Index, or VIX, essentially
measures demand for S&P 500
options insurance over the
next 30 days.
U.S. stocks have been his-
torically calm and, currently,
demand to hedge is low.
Tracking the expected volatil-
ity of the S&P 500 over differ-
ent time frames—called the
“term structure”—can shed
ing to continue to move
higher,” said Kent Bayazitoglu,
an analyst at Gelber & Associ-
ates in Houston.
Oil’s rally above $50 a bar-
rel Monday could also have un-
intended consequences for the
natural-gas market. Natural
gas is often produced along-
side oil, so a surge in drilling
could result in a wave of new
natural gas produced as a by-
product, Mr. Bayazitoglu said.
Still, analysts said the mild
weather outlook masked a
market that is actually becom-
ing tighter and said natural-
gas prices could stabilize. Nat-
ural gas stockpiles stand at
9.2% below year-ago levels and
just 3.9% more than the five-
year average—a sign that the
glut has been largely whittled
away.
REUTERS
in July to 85.75.
Still, market participants were
handed a note of caution when
Commodity Futures Trading
Commission data showed that
last week’s copper gains were
driven by speculative activity
rather than any grand fundamen-
tal shift in supply, Commerzbank
said in a note.
Meanwhile, gold for December
delivery settled down 0.2% at
$1,273.40 a troy ounce in New
York.
—David Hodari
group Inc. have sought proof
that the universal banking
model is suited for an indus-
try hobbled by banking rules
and capital charges since the
financial crisis.
HSBC says its global reach
should be a magnet for com-
panies looking to trade or in-
vest overseas.
For the first half, revenue
fell 11% to $26.2 billion from
$29.47 billion a year earlier.
Net profit in that period
rose 10% to $7 billion from
$6.36 billion a year earlier.
 Heard on the Street: More
cash to come from HSBC. B12
light on when investors expect
the market to get choppy.
Right now, the curve of the
S&P 500’s implied volatility is
relatively flat through the rest
of the year.
“Term structure is showing
no anxiety over [the] debt
ceiling,” wrote Mandy Xu, an
equity derivatives strategist at
Credit Suisse. “There is cur-
rently no event risk priced in
October for the debt-ceiling
catalyst.”
That stands in contrast with
the short-term Treasury mar-
ket, which last week signaled
worries that a protracted con-
gressional debate might spill
into financial markets.
Traders in VIX futures show
little fear of turmoil in Octo-
ber. Futures on the VIX, the
market’s fear gauge, indicate
little worry about the debt
ceiling. VIX futures that expire
in October and November are
trading below where they did
one and two months ago, ac-
cording to FactSet.
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
THE WALL STREET JOURNAL.
Treasurys
End July
Where
They Began
BY AKANE OTANI
U.S. government bonds
were little changed Monday,
ending the month roughly
where they started.
The yield on the 10-year
U.S. Treasury note settled at
2.292%, compared with 2.291%
on Friday and 2.298% at the
end of June. Yields fall as
bond prices rise.
Government bonds have
traded in a narrow range in
July as investors have increas-
ingly taken the view that
global central banks won’t rush
to raise interest rates, given a
recent streak of soft inflation
data. Concerns that central
banks would move away from
highly accommodative mone-
tary policy even as economic
momentum was slowing had
triggered a selloff in global
bonds at the end of June.
2.292%
Yield of the 10-year U.S. Treasury
note at the end of July
Bonds have recovered more
recently, however, as central-
bank officials in the U.S. and
Europe have highlighted a
slowdown in inflation—leading
investors to believe the Fed-
eral Reserve will be cautious
in tightening monetary policy.
That should keep Treasurys
range-bound for now, inves-
tors and analysts have said,
especially if the chances of
major fiscal stimulus from
Washington, such as tax cuts,
don’t materially change.
The yield on the two-year
Treasury note, which is espe-
cially sensitive to changes in
Fed policy, settled Monday at
1.351%, unchanged from Friday
and down from 1.385% at the
end of June. That snapped nine
consecutive monthly increases.
Fed-funds futures showed in-
vestors see a 46% chance of
another rate increase this year,
down from 61% at the end of
June, according to CME Group.
“There’s only so much that
yields can rise in the U.S.
when you have a very low-in-
flation environment and a Fed
that’s not going to be aggres-
sive,” said John Briggs, head
of strategy for the Americas at
NatWest Markets.
Overseas, German govern-
ment bonds recovered from
early losses after data showed
core inflation in the eurozone
growing by 1.2% in July,
slightly faster than analysts
had expected. Inflation tends
to weaken demand for govern-
ment bonds since it chips
away at the purchasing power
of their fixed returns.
The yield on the 10-year
German government bond
reached 0.563% in intraday
trading but settled at 0.541%,
vs. 0.546% Friday, according to
Tradeweb. —Sam Goldfarb
contributed to this article.
AUCTION RESULTS
Here are the results of Monday's Treasury auctions.
All bids are awarded at a single price at the market-
clearing yield. Rates are determined by the difference
between that price and the face value.
13-WEEK AND 26-WEEK BILLS
13-Week
Applications $123,900,001,800 $101,762,979,700
Accepted bids $39,000,406,800 $33,000,379,700
" noncomp $509,530,400 $427,081,700
" foreign noncomp $100,000,000 $300,000,000
Auction price (rate) 99.729528
(1.070%)
Coupon equivalent 1.088%
Bids at clearing yield accepted 84.46%
Cusip number 912796MA4
Both issues are dated Aug. 3, 2017. The 13-week bills
mature on Nov. 2, 2017; the 26-week bills mature on
Feb. 1, 2018.
Tobacco Stocks Tar Array of Investors
BY CHRIS DIETERICH
When stodgy tobacco stocks
cough, lots of investors feel it.
Shares of cigarette makers
are widely owned by mutual
funds and passive, index-
tracking exchange-traded
funds, including those that
promise low volatility, quality
earnings or recurring dividend
payments.
Tobacco stocks have been
profit machines and regular
dividend payers in recent
years. Those strong, reliable
results have lured in tens of
billions of dollars of invest-
ments from funds that target
* * * *
Venezuela Bonds Fall After Vote
U.S. sanctions don’t
target oil industry, but
worries remain that
future ones could
BY JULIE WERNAU
AND CAROLYN CUI
Venezuelan bonds slipped
Monday after the U.S. an-
nounced additional sanctions
on the country but stopped
short of target-
CREDIT ing its oil sector.
MARKETS Some inves-
tors said the
Treasury Depart-
ment’s move to freeze the Vene-
zuelan president’s assets in the
U.S. didn’t alleviate concerns
that stricter sanctions may be
in the offing that could affect
one of the South American na-
tion’s most crucial sources of
revenue: oil sales to the U.S.
State-owned oil producer
Petróleos de Venezuela SA’s
bonds due in November were
down 0.9% in late New York
trading Monday, according to
UBS Wealth Management.
Prices for government bonds
due in 2038 were down 1.1%.
Following an election Sun-
day spearheaded by President
Nicolás Maduro that will give
his administration broad pow-
ers to redraft the constitution,
The Wall Street Journal re-
ported that U.S. government of-
ficials were considering step-
ping up sanctions against
Venezuela that could target its
oil industry by making it harder
for Venezuela to import refined
products from the U.S., which it
uses to dilute its extra heavy oil
to make it suitable for export.
“This certainly qualifies as
A Google Street View car at a press event in Vienna in July. Parent Alphabet’s stock fell 1.3% on Monday, a day that saw weakness in technology stocks generally.
Dow Industrials Rose 2.5% in July to Record
BY RIVA GOLD
AND ALEXANDER OSIPOVICH
The Dow Jones Industrial
Average rose to a fresh record
Monday, with
EQUITIES strong corpo-
rate earnings
helping lift U.S.
26-Week stocks to gains in July.
The blue-chip index, the
S&P 500 and the Nasdaq Com-
posite all posted their best
99.428722
(1.130%) month since February, despite
1.152% a decline in technology stocks
12.00%
912796LJ6 Monday that dragged down
the Nasdaq.
The Dow industrials rose
60.81 points, or 0.3%, Monday
such characteristics, as the
funds themselves have grown
in popularity. Dividend ETFs
have absorbed $17 billion in
new money since 2016, while
low-volatility ETFs have taken
in $12.5 billion, according to
Macro Risk Advisors.
Suddenly, these stocks are
caught in a rare bout of vola-
tility after the Food and Drug
Administration said Friday
that it wants tobacco compa-
nies to make all cigarettes
with such low levels of nico-
tine that they are no longer
addictive.
Marlboro maker Altria
Group Inc. fell as much as 19%
MARKETS
Motorbikes burned after an explosion in Caracas on Sunday. Prices of Venezuelan government bonds fell more than 1% Monday.
‘strong and swift’ in the imme-
diate aftermath of Sunday’s
constituent assembly, but not
yet crossing over to cross-bor-
der trade or financial flows or
even business-specific transac-
tions,” said Siobhan Morden,
head of Latin America fixed-in-
come strategy at Nomura Se-
curities International. She said
she thinks there is potential
for further action from the U.S.
Investors and analysts are
worried about whether Vene-
zuela will be able to make a
to 21891.12. The S&P 500 fell
1.80 points, or less than 0.1%,
to 2470.30. The Nasdaq Com-
posite slipped 26.55 points, or
0.4%, to 6348.12.
Facebook fell $3.20, or
1.9%, to $169.25 after hitting a
record last week. Alphabet,
parent of Google, lost $12.83,
or 1.3%, to 945.50. Tech stocks
in the S&P 500 shed 0.5%.
Still, the Nasdaq ended July
3.4% higher. The Dow was up
2.5% for the month, while the
S&P 500 rose 1.9%; both have
risen four consecutive months.
Improved earnings were
“the main driver” of July’s
gains, said Michael Arone,
before ending that session
down 9.5%—its biggest decline
since November 2008. Altria
dropped a further 2.9% Mon-
day to $64.97.
Camel purveyor British
American Tobacco PLC tum-
bled 6.8% on Friday and a fur-
ther 5% Monday.
Imperial Brands PLC,
which sells the Winston and
Kool brands, fell 3.8% Friday
and skidded 5.9% Monday.
Philip Morris International
doesn’t sell products in the
U.S. and hasn’t been ruffled by
the news. Its shares rose 0.3%
Friday and fell 1.5% Monday.
A penchant for profitability
wave of debt payments over
the coming month amid the
country’s political and humani-
tarian crisis. Investment bank
Caracas Capital Markets esti-
mates roughly $725 million in
sovereign and PdVSA-related
payments are due in August.
Venezuela’s credit-default
swap spreads spiked on Friday
and remained steady Monday,
with the probability of default
within a year reaching 62%,
the highest since February
2016, when oil fell below $30 a
chief investment strategist at
State Street Global Advisors.
“A lot of other stuff is just
noise: the turmoil in D.C., the
political events that flare up
from time to time,” he said.
Of the 58% of S&P 500 con-
stituents that reported sec-
ond-quarter results through
Monday morning, 72% beat
analysts’ expectations for
earnings and sales, according
to FactSet.
Coming earnings releases
include Apple, which is set to
report results on Tuesday.
Shares of Charter Commu-
nications rose 21.65, or 5.8%,
to 391.91, making it the best
means that Altria is the top
holding in the $3.5 billion
iShares Edge MSCI USA Qual-
ity Factor ETF, a “smart beta”
strategy that seeks out compa-
nies with high returns on eq-
uity, low debt and stable earn-
ings. This ETF fell 0.7% on
Friday, far more than S&P
500’s 0.1% decline and was un-
changed Monday.
Altria, which has boosted
its dividend four times over
the past five years, is likewise
a core component in an array
of dividend-themed ETFs, in-
cluding the $5.7 billion
Schwab US Dividend Equity
ETF.
Tuesday, August 1, 2017 | B11
barrel, according to Victor Fu
at Stifel Nicolaus & Co.
Last week, the U.S. levied
sanctions on 13 high-ranking
officials in the Venezuelan
government.
A ban on Venezuelan crude
imports, which is regarded as
one of the boldest options,
would essentially cut off the
country’s largest source of dol-
lar revenue. About 95% of Ven-
ezuela’s export revenue comes
from the oil sector, according
to S&P Global Ratings. In 2016,
performer in the S&P 500, af-
ter it said it wasn’t interested
in acquiring Sprint.
Discovery Communications
fell 2.20, or 8.2%, to 24.60 af-
ter it agreed to acquire Scripps
Networks Interactive.
The Stoxx Europe 600 fell
0.1% Monday to its lowest
level since April. European
stocks largely stalled in July
as the euro strengthened.
The common currency
climbed 3.6% against the U.S.
dollar in July, to $1.1843 late
Monday in New York, after
data showed the eurozone un-
employment rate fell to its
lowest in more than eight
A Philip Morris cigarette assembly process in Medellin, Colombia
ADRIAN MANZOL/ZUMA
Venezuela derived $10.5 billion
from its crude exports to the
U.S., according to Stuart Cul-
verhouse, chief economist at
Exotix Partners.
The country appears to
have little room to maneuver if
it loses export revenues. Its in-
ternational reserves briefly
dipped below $10 billion in re-
cent days, the lowest in 15
years, according to Venezuela’s
central bank. But S&P analysts
estimated that only about $3
billion was liquid.
ROLAND SCHLAGER/AGENCE FRANCE-PRESSE/GETTY IMAGES
years while the annual rate of
inflation remained unchanged.
The dollar also weakened
1.9% against the Japanese yen
for the month, ending at
¥110.26, helping send Japan’s
Nikkei Stock Average down
0.5% in July, its worst monthly
performance since March.
Early Tuesday, the Nikkei was
up 0.4%.
Other major Asian stock
markets climbed Monday.
Hong Kong’s Hang Seng Index
rose 1.3% amid gains in tech-
nology companies and banks,
ending the month around 6.1%
higher. The index was up a
further 0.4% early Tuesday.
NICOLO FILIPPO ROSSO/BLOOMBERG NEWS
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B12 | Tuesday, August 1, 2017
Dollar’s Fall Threatens Foreign Stocks
Drop causes analysts
to lower earnings
forecasts for many
overseas companies
BY RIVA GOLD AND MIKE BIRD
A surprise fall in the U.S.
dollar is taking the fizz out of
international stock markets
and prompting investors to
damp overseas expectations
for the months ahead.
European and Japanese
benchmarks—which were
among the world’s best per-
formers in the spring—have
lagged behind the S&P 500
since the dollar fully erased its
postelection rally two months
ago. Analysts are cutting their
earnings forecasts for compa-
nies in these regions as the
dollar’s unexpected drop has
upended more optimistic pro-
jections.
The ICE Dollar Index, which
measures the U.S. currency
against a basket of six others,
is down 9.2% so far this year,
with the greenback shedding
11.2% against the euro, 6.6%
against the British pound and
5.8% against the yen.
Overseas stock markets are
already reflecting the trend.
Despite a buoyant global econ-
omy, the Stoxx Europe 600 has
fallen 3.4% in local-currency
terms and the U.K.’s FTSE 100
has dropped 1.7% since the
dollar fell back to its pre-elec-
tion value on May 22. The S&P
500, meanwhile, has notched a
3.2% gain over that period.
“The biggest risks on Euro-
pean earnings are the cur-
rency,” said Martin Moeller,
head of global equities at
Union Bancaire Privée. “The
U.S. could benefit and Europe
could suffer if the euro keeps
being strong.”
Export-oriented companies
with high sales exposure
abroad, which make up a large
chunk of overseas stock-mar-
ket benchmarks, are particu-
larly affected by foreign-ex-
change movements.
Email: heard@wsj.com
Reality Bites for This TV Merger
Monday was supposed to
be the happy ending in the
reality saga chronicling the
merger between Discovery
Communications and
Scripps Networks Interac-
tive. Reality sullied the re-
sult, as weak performance by
the two companies high-
lighted their increasingly
tough positions in a tighten-
ing market.
Discovery said Monday it
is buying Scripps for $90 a
share, or $14.6 billion, in-
cluding $2.7 billion of net
debt. The deal combines two
companies focused on real-
ity-based programming,
which together will own five
of the top 10 cable networks
for women.
The rationale behind the
merger is that the combined
company will have greater
scale when negotiating with
pay-TV providers. Discovery
will need that to get in-
cluded in smaller TV bun-
dles. Instead of highlighting
their newfound strength, the
two companies’ reported fi-
nancial results that showed
weakness. Discovery report-
ed worse-than-expected sec-
HSBC Looks Like a Cash Machine With Lots Left to Give
HSBC’s departing leaders
are enjoying their victory
laps and investors are finally
cheering them on.
The bank announced an-
other $2 billion of stock buy-
backs on Monday on the
back of better first-half
profit and higher capital.
That adds to the $3.5 billion
of buybacks since last year,
when both Douglas Flint,
chairman, and Stuart Gul-
liver, chief executive, an-
nounced their pending re-
tirements.
Investors have become
more convinced of HSBC’s
payout potential: Its divi-
dend yield has come down
dramatically from over 7%
most of last year to about
Bucking
the Trend
The U.S. stock market is once
again outperforming global and
European equity indexes, after
matching or underperforming
them earlier in the year.
Since the beginning of the year, the U.S. dollar has declined
against the yen, and more sharply against the euro.
Change in the dollar's value in yen ( ) and euros ( )
2%
0 postelection gains
–2
–4
–6
–8
–10
–12
Jan. Feb. March
Sources: FactSet (MSCI); Tullett Prebon (currencies); Absolute Strategy Research (earnings expectations through July 20)
If a European or Japanese
company earns much of its
revenue in dollars, a weaker
greenback is bad news for its
euro- or yen-denominated
earnings.
Bank analysts project a fall
of roughly 4% to 5% in euro-
zone profits for every 10% rise
in the euro.
Although the dollar’s latest
drop won’t have fully filtered
through, earnings are already
stuttering after the euro’s
strongest quarter against the
dollar since 2010.
Analysts since the middle of
May have downgraded Euro-
pean earnings forecasts for
the second quarter and the
year ahead, in a move many
HEARD ON THE STREET
Channel Changing
Ratio of enterprise value to 2017 earnings before interest, taxes,
depreciation and amortization
11.5 times 11.2
11.0
Time CBS Walt
Warner Disney
*Based on deal value
Source: FactSet
ond-quarter results, and
Scripps, which is scheduled
to report earnings Aug. 9,
lowered its full-year revenue
and profit guidance.
Indeed, Scripps, which
was hurt by weaker-than-ex-
pected U.S. advertising, ap-
pears to have sold just as its
business was taking a turn
for the worse. And it got a
34% premium to boot,
amounting to about 10 times
2017 consensus estimates for
earnings before interest,
Paydays
Forecast dividend yields,
12 months ahead
8%
6 management’s balance-sheet
HSBC
BNP Paribas
4
2 Barclays
J.P. Morgan
Chase
5.2% now.
Return on equity, at 8.8%
annualized in the first half,
is still behind a target of
more than 10%. But if U.S.
interest rates continue to
rise, that should lift revenue
MARKETS
4%
U.S. dollar's postelection
3
rally is completely erased
2 tandem.
1 a strong domestic narrative,
0 currency,” said Zahra Ward-
–1
–2
–3
May 22 June
U.S. dollar erases
April May June July
attribute to the stronger euro.
Unlike the strong start for
second-quarter results in the
U.S., Europe’s reporting season
has proven more muted so far,
said analysts at Morgan Stanley.
Swings in the euro have his-
torically been a key driver of
earnings beats, with a weaker
euro prompting better results.
Some companies hedge
their overseas revenues,
meaning the effects of the
weaker dollar could take sev-
eral quarters to fully material-
ize in earnings, according to
Ankit Gheedia, strategist at
BNP Paribas. He expects the
impact of a stronger currency
to be worst on Europe’s large-
cap automotive, technology,
FINANCIAL ANALYSIS & COMMENTARY
10.3
8.4
6.8
Scripps* Viacom Discovery
THE WALL STREET JOURNAL.
taxes, depreciation and
amortization, excluding the
$350 million in cost savings
Discovery says it can wring
from the deal. That com-
pares with Discovery’s own
multiple of about 7 times.
Discovery’s second-quar-
ter results demonstrated the
biggest risk to the combined
company—that it owns lots
of small networks, which
have been losing subscribers
at a faster rate than their
larger, more “must-have”
from HSBC’s huge deposits
of U.S. and Hong Kong dol-
lars and push the bank to-
ward its goal.
And while that may be a
slow burn, investors will
keep getting rewards from
restructuring and cost-cut-
ting over the past two years.
Between 2017 and 2019,
HSBC could buy back up to
$4 billion in stock a year, ac-
cording to recent estimates
from Morgan Stanley. That
would be on top of more
than $10 billion a year in
dividends.
Even then there might
still be money left over.
HSBC’s investors usually take
20% to 30% of dividends in
July
Heightened earnings expectations for Japan and the eurozone have
recently been trimmed back, while U.S. expectations have risen.
Three-month rolling average of 12-month forward earnings revisions
40
30
20
10
0 Eurozone
–10
Jan. Feb. March
food and beverage, and per-
sonal and household goods
companies, which generate
more than half of their reve-
nues overseas.
For now, the effect on non-
U.S. companies has primarily
come from translating earn-
ings into stronger local cur-
rencies. The euro was at
$1.1843 in late New York trad-
ing Monday.
But “if the euro’s strength
continues and you spend time
around the mid one-twenties
against the dollar, those are
levels where you’d see a more
meaningful impact on earn-
ings,” said Ronan Carr, Euro-
pean equity strategist at Bank
of America Merrill Lynch. “Ex-
peers.
Similar pressure could
push other small cable-net-
work owners such as AMC
Networks, MSG Networks
or even Crown Media Hold-
ings, the closely held owner
of the Hallmark Channel, to
the deal table. Lions Gate
Entertainment, which closed
a deal for Starz in December
2016, also could participate
in further industry consoli-
dation. Liberty Media Chair-
man John Malone, who
owned a stake in Starz and
owns stakes in Lions Gate
and Discovery, has pushed
for a roll-up of these “free
radicals.”
For Discovery and Scripps,
a deal can’t reverse the over-
all slide in U.S. pay-TV sub-
scribers. It may also not be
enough to bolster some of
the companies’ less-watched
networks, which are being
squeezed out of the bundles
of the future.
The combination makes
strategic sense, but investors
should see this deal as a sign
that more pain is coming for
smaller networks.
—Miriam Gottfried
the form of new shares,
which lowers the cash cost
of paying them and means
the group retains more capi-
tal.
With this and current lev-
els of profitability, the bank
might end up with an extra
$1 billion a year of excess
capital.
Mr. Gulliver pointed to a
handful of things that may
eat up capital. There are
coming changes to global
bank capital rules, which
could increase HSBC’s capital
requirements. These are still
years away.
There is also the potential
cost of new international ac-
counting rules, known as
IFRS 9, which will increase
* *** THE WALL STREET JOURNAL.
MSCI USA
MSCI World
excluding U.S.
MSCI Europe
Positive numbers show
earnings expectations rising
U.S.
Japan
April May June July
THE WALL STREET JOURNAL.
port sectors in some parts of
Europe would start to become
less competitive.”
That is because a stronger
local currency makes a com-
pany’s products more expen-
sive for foreign buyers, which
tends to hurt demand.
The dollar has weakened
against the yen in the past few
months too, raising a peren-
nial risk for the Japanese eq-
uity market, which is even
more tightly linked to foreign-
exchange markets than Eu-
rope’s are.
Over the past five years, the
dollar-yen exchange rate and
the Nikkei 225 equity index
have displayed a correlation
coefficient of over 0.9, accord-
OVERHEARD
Ohio’s Armstrong Air and
Space Museum is missing
one of its key attractions.
Thieves made off with a
solid-gold replica of the lunar
lander given to the museum’s
namesake, Neil Armstrong, by
jeweler Cartier shortly after
he completed his mission. It
is one of three created—one
for each member of the
Apollo 11 mission.
“The value of such an item
cannot be determined,” said
the local police department in
a statement.
Well, not really. While the
museum’s Apollo spacesuit,
moon rocks or Gemini VIII
capsule are irreplaceable arti-
facts, the gold replica never
went to space.
For thieves, it is the
weight, not the historic value
that matters.
In fact, it is quite a bit
more valuable than it was
back in 1969 when Arm-
strong received it.
An ounce of gold back
then was worth just $41.
Even adjusting for inflation, it
is now worth nearly five
times as much.
loan-loss provisions for
many banks.
Big banks like HSBC are
expected to feel less pain
from this than smaller
banks, because they are al-
ready doing what the ac-
counting change is meant to
achieve.
The bank will want to
keep some extra capital, but
even after the buyback an-
nounced Monday, HSBC has
a common equity Tier 1 capi-
tal ratio of 14.5% compared
with its target of 12% to 13%.
The main challenge for in-
coming chairman, Mark
Tucker, will be in finding a
CEO who can help him use
this inheritance wisely.
—Paul J. Davies
ing to FactSet data. A coeffi-
cient of zero means two series
are unrelated, while a coeffi-
cient of one means they are
perfectly correlated, moving in
“Japan is a market without
very much being driven off the
Murphy, equity strategist at
Absolute Strategy Research.
While earnings have been re-
vised lower for most regions
in recent weeks, Japan has
fared worse.
The country’s Nikkei Stock
Average snapped a three-
month winning streak in July.
To be sure, international
stocks could do well despite
currency headwinds as stron-
ger local economies help push
up profits just as valuations
grow more compelling com-
pared with the U.S. According
to Bank of America Merrill
Lynch’s July fund manager
survey, investors still remain
positioned heavily in interna-
tional stock markets.
Outside of advanced econo-
mies, some international
stocks may also benefit from a
weaker dollar, particularly in
emerging markets.
“Commodity-sensitive re-
gions—Russia, Brazil, South
Africa—they tend to suffer
most when the dollar starts
rising, because of their exter-
nal position with regards to
dollar debt,” said Gautam Ba-
tra, head of investments for
Mediolanum Asset Manage-
ment. “They breathe a sigh of
relief when the dollar is
weaker.”
Meanwhile, it has certainly
been a boon for U.S. multina-
tional companies, many of
which have stocks trading at
record highs.
“For three years, strong
dollar complaints were in ev-
ery single earnings report,”
said Omar Aguilar, chief in-
vestment officer for equities
at Charles Schwab Investment
Management. “Now they seem
to be benefiting a lot from the
reverse effect.”
WSJ.com/Heard
Heineken vs.
AB InBev:
Pick Wisely
Big-beer investors seem to
care more about cost savings
than sales growth. That may
not last.
Anheuser-Busch InBev
and Heineken both sold
more beer than expected in
the second quarter. But in-
vestors were much more ex-
cited about AB InBev’s re-
sults, sending the stock up
6% on the day they were un-
veiled last week. Heineken’s
shares barely moved when it
reported Monday morning.
AB InBev completed its
purchase of rival SABMiller
last year and is now finding
ways to share expenses. Chief
Executive Carlos Brito’s man-
agement team found an ex-
pectation-busting $335 mil-
lion of so-called synergies in
the second quarter.
This and better margins
also explain why AB InBev
stock is more highly rated at
26 times earnings, compared
with about 21 times for Hei-
neken. Historically, the gap
has been closer.
If investors focused on
top-line growth, things might
look different. Heineken grew
at a faster pace in the first
half, and arguably has the
better geographic profile fol-
lowing the purchases of Mex-
ican brewer FEMSA Cerveza
in 2010 and Singapore-based
Asia Pacific Breweries two
years later. AB InBev still
makes almost one-third of its
profit in North America,
mainly by selling Budweiser
brands that continue to lose
U.S. market share.
For now, it may be ratio-
nal for investors to place
more faith in cost-cutting
than in sales. But AB InBev is
already the world leader and
has nothing transformative
left to buy. Once integration
work on SABMiller is com-
plete, investors might shift
their focus to growth—and
Heineken. —Stephen Wilmot