For personal, non-commercial use only. Do not edit, alter or reproduce.
For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.
DJIA 28132.05 À 220.75 0.8%
What’s
News
T
Business & Finance
rump agreed to a limited
trade pact with Beijing
that will roll back existing tar-
iff rates on Chinese goods and
cancel new levies set to take
effect Sunday as part of a deal
to boost Chinese purchases
of U.S. farm goods and ob-
tain other concessions. A1, A6
 Stocks rose amid signs a
deal was imminent, with the
S&P 500 and Nasdaq closing
at records. The yield on the
10-year Treasury surged. B11
 The FTC is considering
seeking a preliminary injunc-
tion against Facebook over
antitrust concerns related to
how its products interact. A1
 The Saudi government and
its wealthiest citizens helped
lift Aramco to the crown
prince’s valuation target of
$2 trillion, if only briefly. A1
 The global grounding
of Boeing’s 737 MAX jet is
set to stretch to nearly a
year, as U.S. regulators
chided the plane maker. B1
 The ECB’s Lagarde said
she detected some initial signs
of stabilization in eurozone
growth. The central bank
kept rates unchanged. A9
 An affiliate of Liberty Me-
dia is seeking Justice Depart-
ment permission to buy a big-
ger piece of iHeartMedia. B1
 The NLRB told a judge to
approve a settlement in a
case pertaining to McDonald’s
status as a joint employer, in
a legal victory for the firm. B3
 Oracle said it won’t replace
the late Mark Hurd, leaving
Safra Catz as sole chief. B3
World-Wide
 Johnson’s Conservatives
won a decisive majority in
the U.K. general election, a
stunning victory for the
prime minister, a Brexit
cheerleader, that paves the
way for Parliament to trig-
ger a long-delayed split with
the European Union. A1, A7
 The House Judiciary
panel’s chairman halted a
marathon drafting session
on two articles of impeach-
ment against Trump, call-
ing for a resumption Fri-
day morning with votes. A4
 Top Democratic and Re-
publican lawmakers said
they reached a tentative
agreement on federal gov-
ernment spending. A4
 Saudi Arabia is quietly try-
ing to mend fences with Iran
and other regional foes amid
worries about the risks con-
flict poses to its economy. A8
 The shootout in a kosher
grocery in Jersey City, N.J.,
is being investigated by of-
ficials as a potential act of
domestic terrorism. A3
 The U.S. conducted its
first flight test of a new
land-based ballistic missile
since the demise of a land-
mark nuclear treaty. A6
 The House passed far-
reaching legislation to lower
drug prices, but the bill has
almost no chance of being
taken up by the Senate. A4
 Vale said experts con-
cluded that drainage prob-
lems were largely to blame
for January’s deadly mining-
dam collapse in Brazil. A10
JOURNAL REPORT
CEO COUNCIL:
Chief Executives on
the Hot Seat R1-10
CONTENTS
Business News...... B3
Crossword.............. A13
Heard on Street. B12
Life & Arts...... A12-13
Mansion.............. M1-12
Markets..................... B11
s 2019 Dow Jones & Company, Inc.
All Rights Reserved
* * * * * * FRIDAY, DECEMBER 13, 2019 ~ VOL. CCLXXIV NO. 140 WSJ.com HHHH $4.00
NASDAQ 8717.32 À 0.7% STOXX 600 407.58 À 0.3% 10-YR. TREAS. g 1 1/32 , yield 1.901% OIL $59.18 À $0.42 GOLD $1,466.70 g $2.70 EURO $1.1132 YEN 109.30
Johnson Leads Tories to Big Win in U.K. Vote
U.S. Agrees to
Limited China
Trade Deal
Trump clears pact to Michael Pillsbury, an ad-
viser to the president, said he
reduce tariffs in return spoke with Mr. Trump, who
for boost in purchases said the deal calls for China
to buy $50 billion worth of
of U.S. farm goods agricultural goods in 2020,
along with energy and other
President Trump has goods. In exchange the U.S.
agreed to a limited trade would reduce the tariff rate
agreement with Beijing that on many Chinese imports,
will roll back existing tariff which now ranges from 15% to
rates on Chinese goods and 25%.
cancel new levies set to take The Wall Street Journal re-
effect Sunday as part of a ported earlier Thursday that
the U.S. side has offered to
By Lingling Wei, slash existing tariff rates by
Bob Davis, half on roughly $360 billion
William Mauldin in Chinese-made goods, in ad-
and Josh Zumbrun dition to canceling the tariffs
on $156 billion in goods that
deal to boost Chinese pur- Mr. Trump had threatened to
chases of U.S. farm goods and impose on Sunday. That offer
obtain other concessions, ac- was made to Beijing in the
cording to people familiar past five days or so.
with the matter. Should Beijing fail to make
Mr. Trump met top eco- the purchases it has agreed
nomic and trade advisers on to, original tariff rates would
the agreement for an hour be reimposed. Trade experts
Thursday, and senior adminis- call that a “snapback” provi-
tration officials were making sion, though the president
WILL OLIVER/EPA/SHUTTERSTOCK
calls to tout the outlines of an didn’t use that term, Mr. Pills-
agreement, the people said. Please turn to page A6
FTC Weighs Action
Prime Minister Boris Johnson won a commanding majority in Parliament in the election
Thursday, clearing the way for his plans for the U.K. to leave the European Union.
To Rein In Facebook
Conservative Victory Sets
BY JOHN D. MCKINNON ple said. An injunction could
AND EMILY GLAZER seek to bar Facebook from fur-
ther integrating apps that fed-
WASHINGTON—Federal of- eral regulators might look to
Stage for January Brexit
ficials are considering seeking unwind as part of a potential
a preliminary injunction future breakup of the com-
against Facebook Inc. over an- pany, one of the people said.
titrust concerns related to A majority of the five-mem-
how its products interact, ac- ber FTC would be needed to
BY MAX COLCHESTER projected 364 seats would give That puts Britain in line cording to people familiar seek an injunction, which the
AND JASON DOUGLAS it 68 more lawmakers than all with a host of other Western with the matter. commission would need to file
the other parties combined. countries, including the U.S., If it materializes, the action suit in federal court to obtain.
LONDON—British Prime The scale of the victory where shifting voter loyalties by the Federal Trade Commis- The FTC declined to comment.
Minister Boris Johnson won a makes it all but certain that since the financial crash of sion would focus on Face- Facebook declined to com-
decisive majority in Thurs- Britain will leave the EU at the 2008 have changed the politi- book’s policies concerning how ment. The social-media giant
day’s general election, a stun- end of next month, completing cal landscape. it integrates its apps or allows has worried for months that
ning victory for the Brexit a divorce that was backed by Speaking after being re- them to work with potential the FTC would seek an injunc-
cheerleader that paves the voters in a 2016 referendum elected in his electoral dis- rivals, these people said. tion against what are known as
way for the U.K. Parliament to but that has been bogged down trict in west London, Mr. Alongside its core social net- its interoperability rules, one
trigger a long-delayed split in the country’s Parliament for Johnson hailed the results as work, Facebook’s key products of the people familiar with the
with the European Union. more than three years. “historic” and suggested his also include Instagram, Mes- matter said. Interoperability
Mr. Johnson’s Conserva- It also signals a once-in-a- government “has been given senger and WhatsApp. refers to the manner in which
tives secured a majority in generation realignment of Brit- a powerful new mandate to The potential FTC action digital platforms interact.
Britain’s 650-seat House of ain’s electoral map, with scores Please turn to page A7 would likely seek to block Please turn to page A2
Commons, on course for the of long-held working-class Facebook from enforcing those
party’s strongest performance seats in England and Wales  Pound soars as election policies on grounds that they  Facebook plans to set up
at an election since 1987. Its switching to the Conservatives. result comes into focus..... B11 are anticompetitive, the peo- independent panel.................. A2
Internet Providers Juice Speed Scores Aramco
Briefly Hits
$2 Trillion
FCC report cards are used to sell broadband packages at higher prices; ‘hard to trust the numbers’
AT&T Inc. was dismayed at its report
card from a government test measuring By Shalini Ramachandran,
to interviews with more than two dozen
industry executives, engineers and gov-
Value Target
internet speeds. So the telecom giant Lillian Rizzo ernment officials. As a result, the FCC’s
sought to change its grade. and Drew FitzGerald report likely gives consumers an unreli- BY RORY JONES
The company pushed the Federal able measure of internet providers’ per- AND SUMMER SAID
Communications Commission to omit AT&T’s remaining speed tiers notched formances by overstating speeds.
unflattering data on its DSL internet high marks. “It’s hard to trust the numbers when The Saudi government and
service from the report, which assesses The FCC’s nearly decade-old program, you know” of efforts to massage the re- its wealthiest citizens helped
whether providers are delivering the Measuring Broadband America, is the sults, said veteran cable and telecom lift Aramco to Saudi Crown
speeds they advertise. AT&T also didn’t U.S. government’s gauge of whether consultant Mark Lubow. Prince Mohammed bin Salman’s
provide information the FCC needed to home internet-service providers are The stakes are high. Cable and coveted valuation target of $2
validate speeds on those customers, the holding up their end of the bargain phone companies often tout the trillion—if only for a few hours.
test officials confirmed. when they promise users certain speeds. scores while trying to sell packages Aramco’s share price on
In the end, the DSL data was left out Companies wield tremendous influ- promising ever-faster speeds at higher Saudi Arabia’s Tadawul ex-
of the report released late last year, to ence over the study and often employ prices, and they are increasingly lean- change jumped nearly 10% to
the chagrin of some agency officials. tactics to boost their scores, according Please turn to page A11 38.7 Saudi riyals ($10.32),
briefly valuing the oil giant at
$2 trillion Thursday.
Show Me the Money! Seriously, Where Is It? TOMORROW
The shares ended the day’s
trading at 36.8 riyals and a
i i i valuation of $1.96 trillion. That
was up from $1.7 trillion set
Bankers search for the world’s missing cash; check the cushions during the company’s initial
public offering, the world’s
largest ever.
BY DAVID WINNING lars kept overseas. Socking Still, Prince Mohammed and
AND JAMES GLYNN those bills away provides his officials can point to the
some protection against eco- milestone as proof that
Some Australians are bury- nomic turmoil, especially in Aramco, known officially as
ing it. The Swiss might be hid- countries with a record of in- Saudi Arabian Oil Co., was
ing it. The Germans are proba- stability in their own financial worth $2 trillion.
bly hoarding. The departed systems, the paper said. A number of wealthy Saudi
Opinion.............. A15-17 Banks are issuing more In Australia, the stock of families—some of whom had
Personal Finance.. B5
Sports....................... A14 notes than ever and yet they circulation hit about $1.7 tril- Australian bank notes on issue relatives caught up in the
Technology............... B4 seem to be disappearing off lion last year ($12.4 billion of relative to the size of the Crown Prince’s 2017 anticor-
U.S. News............. A2-6 the face of the earth. Central it in $1 bills; $1.3 trillion of it economy is near the highest it ruption crackdown—as well as
Weather................... A13
World News..... A7-10
banks don’t know where they in $100 bills) according to the has been in 50 years, said government funds were asked
have gone, or why, and are U.S. Federal Reserve. That is Philip Lowe, governor of Aus- to buy shares in the company
playing detective, trying to up from $1.2 trillion in 2013. tralia’s central bank. He to support a $2 trillion valua-
> crack the same mystery.
The puzzle is especially
A Federal Reserve econo-
mist, Ruth Judson, wrote that
showed off newly printed bank
notes at a recent event in Mel-
WSJ. tion after it was listed on the
Please turn to page A8
perplexing since societies and about 60% of all U.S. currency, bourne and estimated that MAGAZINE
companies are going cashless, and about 75% of $100 bills, about $2,000 in printed bills  Banks earned low fees on
given the boom in payments had left the country by the exists for every Australian. the rock Aramco’s IPO........................... B10
by cards and cellphone apps. end of 2016—for a total of “I, for one, don’t have any-  Saudis seek to ease tensions
The value of U.S. dollars in about $900 billion in U.S. dol- Please turn to page A10 with Iran....................................... A8
 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.
A2 | Friday, December 13, 2019
Facebook to Set Up Independent Panel
BY JEFF HORWITZ
Facebook Inc. will pay $130
million to establish an inde-
pendent board charged with
reviewing how the company
moderates its content, provid-
ing long-term backing to its
experiment in better policing
the platform.
The money, which Facebook
described as an “initial com-
mitment,” is meant to cover
six years of operations, includ-
ing salaries for board mem-
bers, office space and a staff
including case managers, law-
yers and human-resources
personnel.
The money marks a signifi-
FTC Eyes
Tech Giant
Over Apps
Continued from Page One
Concern that Facebook’s
interoperability policies curb
other services’ ability to
compete would underlie a po-
tential FTC action, these peo-
ple said. Facebook has re-
jected that recurring
complaint about its practices.
Officials also worry that
some of Facebook’s plans to
further integrate its own ma-
jor products could make it
harder to eventually split up
the company in an antitrust
case, according to one of the
people.
It isn’t known whether the
FTC will move forward with
an antitrust action against
Facebook or seek an injunc-
tion over its interoperability
policies. If the agency takes
either step, its action could
occur as soon as next month,
according to one person fa-
miliar with the matter.
It is also possible that the
FTC could attempt to block
certain Facebook interopera-
bility policies that critics say
have disadvantaged social-
media rivals in the past.
Facebook said in January
that it was considering closer
interoperability of messaging
across its main platforms.
But the company has said its
recent plans to increase in-
teroperability are aimed at
improving users’ experiences,
particularly in light of recent
controversies over privacy on
Facebook, and not to freeze
out competitors or fend off
regulatory action.
“There are privacy and se-
curity advantages to interop-
erability,” Facebook CEO
Mark Zuckerberg wrote in a
Facebook post in March.
“With the ability to mes-
sage across our ser-
vices…you’d be able to send
an encrypted message to
someone’s phone number in
WhatsApp from Messenger.”
Messaging networks are
gaining in popularity, partic-
KENTUCKY
Order Lets Nonviolent
Felons Vote Again
Kentucky Gov. Andy Beshear
signed an executive order
Thursday that restores voting
rights to more than 140,000
people with nonviolent felony
convictions, one of his earliest
acts after being sworn into of-
fice.
The order, which applies to
those who have completed their
sentences, fulfills a promise the
Democrat made in his campaign
against Republican incumbent
Matt Bevin. Under Kentucky law,
felons permanently lose the
right to vote, unless a governor
restores it, making it one of the
strictest disenfranchisement
statutes in the U.S.
“We have a moral responsi-
bility to protect and extend the
right to vote, and to say to so
many who have paid their debt
that we welcome them as full
members in society again,” Mr.
Beshear said. He said that he
supported passing a constitu-
tional amendment that would
automatically restore voting
rights for nonviolent felons.
The move is the latest in a
gradual but steady trend toward
restoring voting rights to people
with felony records in the U.S.
The changes could add hun-
dreds of thousands of new vot-
ers ahead of the 2020 elections.
—Arian Campo-Flores
cant investment in an organi-
zation that doesn’t yet exist,
but could take on responsibil-
ity for some of the company’s
thorniest decisions. In recent
years, Facebook has been be-
set by public controversies
over how it handles misinfor-
mation, hate speech and
graphic content.
Similar controversies have
occurred at Alphabet Inc ’s
YouTube and Twitter Inc. But
Facebook is the first of the so-
cial-media giants to give an
outside organization poten-
tially binding control over how
some of them are addressed.
“They’re putting their
money where their mouth is,”
It isn’t known whether the FTC will move forward with an antitrust action against Facebook. Above, the Menlo Park, Calif., office.
Company Won’t
Change Tracking
Facebook Inc. has told ad-
vertisers it doesn’t need to
make changes to its web-track-
ing services to comply with Cal-
ifornia’s new consumer-privacy
law, setting up a potential early
clash over how the closely
watched law will be enforced
once it goes into effect.
Facebook is one of several
companies in the $130 billion
U.S. digital-ad industry that
maintains that routine data
transfers about consumers might
not fit the law’s definition of
“selling” data. Other major com-
ularly among younger users,
and becoming more impor-
tant to Facebook’s business.
The company hopes to update
its platforms to address that
trend.
Columbia University law
professor Tim Wu, a former
senior adviser for the FTC,
said seeking a preliminary in-
UNITED IN GRIEF: Houston police officers paid their respects at the funeral Thursday of Sgt.
Christopher Brewster, 32, who was shot Saturday while responding to a domestic-violence call.
NFL
Ex-Players Charged
In Fraud Scheme
U..S. prosecutors charged 10
former National Football League
players with participating in a
scheme that allegedly stole $3.4
million from an NFL health-care
fund for retired players.
The Justice Department on
Thursday announced charges
against Robert McCune and nine
other ex-players, including Clinton
U.S. NEWS
said Kate Klonick, an assistant
law professor at St. John’s
University whom Facebook al-
lowed to attend some of the
internal discussions surround-
ing the board. “It’s a lot of
money, it’s a long time, and it
can’t disappear.”
Sometimes dubbed “Face-
book’s Supreme Court,” the
board will function like an ap-
peals court, with five-person
panels adjudicating controver-
sies arising from Facebook’s
in-house efforts to enforce its
content standards. In addition
to rendering binding decisions
on a case-by-case basis, the
board can recommend policy
changes to Facebook that the
petitors, including Alphabet Inc.’s
Google, have introduced new
tools to comply with the law’s
mandate to stop collecting data
if a user opts out.
Once the California Con-
sumer Privacy Act takes effect
Jan. 1, websites with third-party
trackers must add to their
home page a button that says
“Do Not Sell My Personal Infor-
mation.” If a consumer clicks
that button, the site is barred
from transactions that send
data to hundreds of third par-
ties.
Those transfers have under-
pinned the digital-ad market for
more than a decade, and are a
core component of Facebook’s
and Google’s powerful tools for
junction could hold strategic
benefits for the commission.
“The advantages are that it
gets things moving, and sort
of forces things to a judicial
decision very quickly,” Mr.
Wu said, “as opposed to hav-
ing an antitrust investigation
going for five years…The bur-
dens of proof can be higher
U.S. WATCH
Portis and Correll Buckhalter, for
two conspiracies linked to the
same scheme to defraud the
plan. The agency also said it in-
tended to charge Joe Horn and
one other player.
Justice Department officials
said the former players had sub-
mitted around $3.9 million in
false claims to the plan, which
was collectively bargained be-
tween the league and the players
association in a 2006 agreement.
Players lodged claims for ex-
pensive medical equipment, in-
THE WALL STREET JOURNAL.
company must publicly ad- additional delay: Facebook content “beyond just freedom
dress. says it no longer expects to of expression” and said the
The review board has been appoint board members before board should justify all of its
in the works since last year, early next year. decisions in terms of United
when Chief Executive Mark Alongside news of the Nations human-rights princi-
Zuckerberg wrote that despite board’s funding and timing, ples. It also said Facebook
his optimism about the com- Facebook also released a 60- should provide financial com-
pany’s role in society, “without page report it commissioned pensation to people harmed by
sufficient safeguards, people from social-responsibility con- content “in cases when dam-
will misuse these tools to in- sultant BSR. The document, age can be economically as-
terfere in elections, spread which Facebook said it hoped sessed.”
misinformation, and incite vio- would influence the board’s “We feel a responsibility
lence.” future actions, is an apparent and have received feedback
Before launching the board, victory for a coalition of hu- that the board should be
the company held listening man-rights organizations that grounded in human-rights
sessions across the globe and lobbied Facebook about the principles, including the rights
produced numerous reports on board. to freedom of expression, pri-
its plans and feedback. Thurs- The paper recommended vacy and remedy,” said Brent
day’s funding announcement that the board consider a wide Harris, a director of gover-
was paired with news of an range of possible harms from nance at Facebook.
antitrust regulators last sum-
mer.
“A preliminary injunction
may be necessary or desir-
able to prevent this merger
and maintain the status quo.”
The slide deck’s authors in-
clude Mr. Wu and New York
University law professor
Scott Hemphill.
Moving swiftly toward liti-
gation over interoperability
also could allow the FTC to
take enforcement action
ahead of the Justice Depart-
ment. The two agencies share
federal antitrust-enforcement
authority, and occasionally
are rivals. Both agencies are
JOSH EDELSON/AGENCE FRANCE-PRESSE/GETTY IMAGES
known to be looking into pos-
sible antitrust issues involv-
ing Facebook.
An FTC antitrust lawsuit
against Facebook could be-
come federal enforcers’ open-
ing salvo against big tech
companies as they look into
similar concerns involving Al-
phabet Inc.’s Google unit as
well as Amazon.com Inc.
State attorneys general also
are investigating Facebook
and Google.
The FTC has been examin-
ing Facebook’s acquisitions as
a central part of its antitrust
collecting data on consumers with major advertisers in Octo- inquiry into the company,
and delivering relevant ads to ber, Facebook stated its data seeking to determine whether
them online. collection qualified for the law’s they were part of a campaign
In advance of the California exemption for sending data to to consume potential rivals
law taking effect, Google has “service providers” and didn’t and head off competitive
created a new protocol so sites count as a “sale” of data under threats, the Journal reported
won’t send data to the com- the law, according to a person in August. Facebook has ac-
pany if consumers have opted who listened to one of the calls. quired about 90 companies
out. A Google spokeswoman Facebook also maintains over the last 15 years, accord-
said the protocol was intended that publishers can adjust set- ing to data compiled by S&P
to “help them [advertisers] as tings to block its web tracker, Global, including Instagram
they work to comply with” the called pixel, from transmitting and WhatsApp.
California law. the data of users who have In congressional testimony
Facebook, however, has told opted out. earlier this year, Matt Per-
advertisers that its trackers’ “Businesses already have ault, then director of public
data collection doesn’t consti- the ability to manage whether policy at Facebook, told a
tute “selling” data under the they send data and how they House antitrust subcommit-
California law and that it there- send data to Facebook through tee that the company’s acqui-
fore doesn’t believe it is re- pixel,” a Facebook spokes- sitions have fueled innova-
quired to make changes. woman said in a statement. tion and brought together
In private conference calls —Patience Haggin firms of complementary
strengths
Companies purchased by
for the government, but if junction blocking the com- Facebook “have had more op-
they’ve got a good case it can pany’s plans for further in- portunity to innovate as part
be advantageous.” teroperability. of Facebook than they would
Mr. Wu is among a group “One anticipated (and pos- have on their own—enhanc-
of Facebook critics who see sibly intended) effect of the ing users’ experience and re-
the company’s pursuit of integration is to make dives- sulting in more choice for
closer integration as conceal- titure more difficult,” read a more people overall, not
ing anticompetitive motives. slide in a deck reviewed by less,” Mr. Perault said.
They have argued to the The Wall Street Journal that —Deepa Seetharaman
FTC that it should seek an in- Facebook critics presented to contributed to this article.
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 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.
THE WALL STREET JOURNAL.
Landowners Stall Plans for Border Wall
Texas farmers and
Catholic diocese
resist federal efforts
to claim their land
BY ELIZABETH FINDELL
LAREDO, Texas—Nearly
three years into the Trump ad-
ministration, almost no border
wall has been built in Texas.
Local property owners ranging
from ranchers to a Catholic di-
ocese and institutions have re-
sisted federal efforts to claim
their land.
The resistance in South
Texas, where most land is pri-
vately owned, illustrates the
challenges in building a wall,
even if funding is available.
U.S. Customs and Border
Protection has been sending
letters and holding meetings
for two months asking about
120 landowners with river-
front property around Laredo,
to survey their land, the first
step in building a wall on it.
Some around the South Texas
city, where many can see the
Rio Grande and Mexico from
their porches, said yes right
away. But others are resisting,
setting up a potential conflict
with the government that
could drag on for years.
About 200 miles southeast,
in the Rio Grande Valley, re-
fusals have led the govern-
ment to sue 46 landowners for
the right to survey their prop-
erty in preparation for acquir-
ing part of it, including farm-
ers, ranchers, businesses and
several facilities owned by a
Catholic diocese.
Some cite ideological rea-
sons for resisting a wall on
their land. Others say it will
split their properties in two
and interfere with their busi-
nesses or way of life.
Building a permanent bar-
rier along the nearly 2,000
miles of the southern border
was a signature promise of
President Trump’s 2016 cam-
paign. He and his supporters
believe a wall would help to
reduce illegal immigration.
In the three years since, the
government has built 80 miles
of border wall, according to
CBP, most of which has re-
placed existing fencing in Cali-
fornia. In the Rio Grande Val-
ley, the government has
Auxiliary Bishop Mario Aviles at a border-wall section in Hidalgo, Texas, in June 2018.
Attack Eyed as Act of Domestic Terror
BY JOSEPH DE AVILA
Officials are investigating
the shootout in a kosher gro-
cery in Jersey City, N.J., as a
potential act of domestic ter-
rorism, and recovered several
hundred shell casings along
with a cache of rifles and
handguns from the scene, they
said.
Law-enforcement officials
said the assailants, David An-
derson and Francine Graham,
were armed with a 12-gauge
shotgun, two .9mm handguns,
a .22 caliber handgun outfitted
with a homemade silencer and
an AR-15-style weapon, a rifle
that has been used in many
mass shootings. Graham legally
purchased the shotgun and the
.22 caliber handgun in Ohio in
spring 2018, officials said at a
press conference Thursday.
Investigators were still de-
termining why the shooters
chose to attack the Jersey City
Kosher Supermarket, where
three people were killed, in-
cluding two Hasidic Jews. But
recent interviews with wit-
nesses and other evidence in-
funding for up to 110 miles of
new wall but has yet to obtain
the land needed for most of it.
While Texans are split
evenly on whether they sup-
port or oppose Mr. Trump’s
border wall, those in counties
along the border oppose it
54% to 40%, according to a
Quinnipiac survey of voters
this year.
In Laredo, developer Rich-
ard Hachar said he allowed
government surveyors on his
land because he believes the
wall will help with security for
his 300 riverfront lots where
he plans to build homes. “We
have Border Patrol on my
property every day,” he said.
“If we had a wall, I think it
would be beneficial to my
sales.”
Mary Furrh Gomez, whose
commercial lots are mostly va-
cant, signed the papers be-
cause she figured “if the gov-
ernment decides to do
something, they’re going to do
it whether you agree with
them or not,” she said.
But David Acevedo, who
manages a 180-acre riverfront
ranch, said he is concerned a
barrier would make it difficult
to access the Rio Grande river
for irrigation and, when
pumps fail, for his cattle to
drink.
At the more than 100-year-
old Sacred Heart Children’s
Home, the nuns in charge have
declined to give their consent.
“The nuns are holding back for
the time being,” due in part to
concerns over river access and
irrigation, said their spokes-
man, Mercurio Martinez.
Other Catholic institutions
have said a wall conflicts with
their faith, citing Pope Francis,
who in a May television inter-
view criticized “this new cul-
ture of defending territories
by building walls.” The Dio-
cese of Brownsville has re-
fused federal efforts to survey
five parcels of land it owns, in-
cluding a historic chapel, an
oratory with a library and a
priest’s home, and three pieces
of vacant land that might
someday hold churches.
“I don’t want to use the
church property to say that no
matter how dire your life is,
you cannot be received here,”
said Brownsville Bishop Daniel
Flores. “The government is go-
ing to have to take the land.
dicated that the assailants,
who died Tuesday following
an hourslong shootout with
police, held views that re-
flected hatred of Jews and po-
lice officers, said New Jersey
Attorney General Gurbir Gre-
wal.
“The evidence points to-
wards acts of hate,” Mr. Gre-
wal said. “I can confirm that
‘The evidence
points towards acts
of hate,’ a New
Jersey official says.
we are investigating this mat-
ter as potential acts of domes-
tic terrorism, fueled both by
anti-Semitism and anti-law-
enforcement beliefs.”
Mr. Grewal confirmed that a
note was recovered from the
stolen U-Haul van used by the
shooters, but declined to dis-
cuss what it said. Law-en-
forcement officials have also
U.S. NEWS
La Lomita chapel is near a levee where a wall was planned before the site, near Mission, Texas, was excluded from wall construction.
The church is not going to
give it to them.”
The Catholic Church is
highly influential in this pre-
dominantly Hispanic area. The
counties around the Rio
Grande Valley and Laredo
range from 34% to 70% Catho-
lic, among the highest such
rates in the nation, according
to the U.S. Religion Census.
The only new segments of
wall in Texas since Mr. Trump
took office are south of the
city of Donna in the Rio
Grande Valley, where three
chunks a few dozen feet long
rise above a levee. The stretch
of wall begun there is ex-
pected to be 8 miles long and
cost $167 million, according to
CBP. Its construction timeline
will depend on how long it
takes the agency to get rights
to all of the needed property.
CBP representatives said
that the agency chooses proj-
ects based on factors including
real-estate availability, priority
identified a number of social-
media accounts that might
have been used by the shoot-
ers, which investigators are
trying to confirm, he said.
Investigators also continued
to examine why the suspects
killed Jersey City Police Detec-
tive Joseph Seals at a ceme-
tery before heading to the
store, officials said.
“It now appears from law
enforcement that the events
that terrorized Jersey City on
Tuesday were fueled by hate,”
Gov. Phil Murphy, a Democrat,
said in a statement. “The mur-
der of innocent civilians be-
cause of their religious beliefs,
and the murder of a police of-
ficer for the simple reason
that he was a police officer,
must be the wake-up call to
those who fail to see or ac-
knowledge the rising tide of
hate here in New Jersey, and
around the nation.”
The shooters expressed in-
terest in the Black Hebrew Is-
raelites, but investigators ha-
ven’t definitively found formal
links to the group or any other
organization, Mr. Grewal said.
Friday, December 13, 2019 | A3
FROM TOP: RYAN MICHALESKO/THE DALLAS MORNING NEWS/ASSOCIATED PRESS; DELCIA LOPEZ/THE MONITOR/ASSOCIATED PRESS
and funding, but that working
in short segments doesn’t af-
fect the overall cost.
CBP typically pays $100 to
survey land. If a landowner re-
fuses, the government must
Brighten
sue in federal court to access
the property. When a survey is
her
complete, the government of-
fers a price, which varies by
holidays.
property, to acquire the
needed land. If the landowner
declines to sell, the govern-
ment must sue again to take it
through eminent domain.
The Fifth Amendment to
the U.S. Constitution allows
private property to be “taken
for public use,” provided “just
compensation” is paid. Its
power has been used to help
establish parks, clear land for
highways and railways, and
construct public buildings.
Efrén Olivares, an attorney
representing landowners in
five open eminent-domain
cases, said courts tend to de- Celestial Pendant
fer to national security argu- with Lapis Inlay and Diamonds
ments in such cases. Judges in 14K Yellow or White Gold
may adjust the amount of from $899
compensation landowners get,
he said. Judges deciding emi- Chain included
nent-domain cases typically Matching Earrings available
try to determine the prop-
erty’s fair-market value, which
can be tricky if a parcel is
unique or sales of comparable
properties aren’t available.
Some plaintiffs will simply
fight to keep their land “until OAHU • MAUI • KAUAI • BIG ISLAND OF HAWAII
the day they die” Mr. Olivares
BOSTON • CHICAGO • DALLAS • DENVER • LAS VEGAS
said, in an effort to run out
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the clock on a Trump presi- PLEASANTON • PORTLAND • ROSEVILLE • SAN DIEGO
dency and hope his successor SAN FRANCISCO • SAN JOSE • SEATTLE • WASHINGTON, D.C.
changes course.
NaHoku.com • 1-866-296-9374
The only way Texas land-
owners who don’t want a wall
on their property have avoided FREE FEDEX SHIPPING ON ALL ORDERS OF $200 OR MORE
a court fight is through con-
gressional intervention. La Lo-
mita Mission, which sits on
the banks of the Rio Grande
and is part of the Diocese of
Brownsville, was specifically
excluded from wall construc-
tion along with several South
Texas wildlife refuges in bor-
der-security legislation last
year.
The Black Hebrew Israelite
movement, known for its
members often dressed in
elaborate clothing and yelling
at passersby, has been visible
on street corners in major cit-
ies for years. The movement,
which dates to the 1800s, is
entirely unconnected to main-
stream Judaism.
Its followers generally be-
lieve the 12 tribes of Israel, re-
ferred to in the Old Testa-
ment, are ethnic groups,
which don’t include white peo-
ple. Black people, Native
Americans and Latinos—not
Jews—are God’s chosen peo-
ple, they say. Members of the
group often shout anti-Semitic
insults at people in Jewish
neighborhoods.
Gregory Ehrie, special
agent in charge of the Federal
Bureau of Investigation’s New-
ark office, said they haven’t
identified any conspirators
and believe the shooters acted
alone. “But we will continue to
monitor for any threat to any
community,” Mr. Ehrie said.
—Ian Lovett
contributed to this article.
 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.

A4 | Friday, December 13, 2019 P W L C 10 11 12 H T G K R F A M 1 2 3 4 5 6 7 8 9 O I X X ***** THE WALL STREET JOURNAL.

U.S. NEWS

Panel Sets Vote on Impeachment

BY SIOBHAN HUGHES
Spending
Agreement
AND NATALIE ANDREWS

WASHINGTON—House Judi-
Reached
ciary Committee Chairman
Jerrold Nadler halted a mara-
thon drafting session on two
By Top
articles of impeachment
against President Trump
Thursday night, calling for the
Lawmakers
session to resume Friday BY ANDREW DUEHREN
morning with votes. AND ANDREW RESTUCCIA
Republicans and Democrats
had spent all day debating WASHINGTON—Top Demo-
abuse-of-power and obstruc- cratic and Republican lawmak-
tion-of-Congress charges ers said they reached a tenta-
against the president, based tive agreement on federal
on allegations that he improp- government spending, giving
erly pressured Ukraine to an- Congress and the White House
nounce probes that would ben- about a week to approve the
efit him politically and then particulars before funding runs
tried to block Congress from out after Dec. 20.
investigating. “There’s a meeting of the
MATT MCCLAIN/PRESS POOL

The committee had been ex- minds,” House Appropriations

pected to vote on the two arti- Chairwoman Nita Lowey (D.,
cles Thursday, but after 14 N.Y.) said on Thursday.
hours of debate that dragged on President Trump and House
past 11 p.m., Mr. Nadler (D., Republicans hadn’t yet signed
N.Y.) called a recess until 10 off on the accord, aides said.
a.m. Friday, to the consterna- But Mr. Trump “likes what he
tion of the panel’s Republicans. Democrats on the Judiciary Committee argued President Trump abused his power by pressuring Ukraine to investigate Joe Biden. sees,” a senior administration
“They want the prime-time official said. The White House
hit,” Rep. Doug Collins (R., In the committee debate highest crime that one who impeachment, House Speaker Trump’s actions. was still reviewing the details
Colo.), the ranking member of Thursday, Republicans chal- holds public office could com- Nancy Pelosi (D., Calif.) said Mr. Trump would be only the of the agreement Thursday
the committee, complained. lenged Democrats’ allegation mit? A crime against our Con- Thursday she wouldn’t be third president to be impeached night.
If the panel votes to approve related to Mr. Trump’s pressure stitution?” twisting arms to get votes to by the House, after Andrew The agreement follows a
the two articles on Friday, as on Ukraine, saying that an Mr. Trump has called the pass the articles. Democrats Johnson and Bill Clinton. Nei- meeting on Thursday between
expected, they would go to the abuse of power charge could be impeachment inquiry a hoax have a 36-seat margin in the ther was convicted in the Sen- House Speaker Nancy Pelosi
full House for a vote next week. used for policy disagreements and denied wrongdoing. On House, and can afford a limited ate. Richard Nixon resigned be- (D., Calif.), Treasury Secretary
If the House votes to impeach rather than for misconduct. Thursday morning, he number of defections. fore his expected impeachment. Steven Mnuchin and the lead-
on either of the counts, the “The president isn’t even ac- retweeted criticisms of Demo- Rep. Lizzie Fletcher, a Texas Democrats say that the un- ers of the House and Senate
matter would then move to the cused of committing a crime,” crats and their efforts. Democrat who flipped a GOP derlying facts aren’t contested, appropriations committees.
Republican-controlled Senate, said Rep. Steve Chabot (R., As debate continued, Demo- district last year, was uncom- citing in part a transcript of Mr. Leaving that meeting, Mr.
where the tally is expected to Ohio). crats projected they will have mitted and said she planned to Trump’s July 25 call with Mnuchin said that negotiators
fall short of the two-thirds vote Democrats said that im- the votes to impeach Mr. rewatch the hearings before Ukraine’s president in which he were focusing on a small list of
required to remove Mr. Trump peachable offenses cover be- Trump, a politically wrenching making a decision. asked his counterpart to “do us remaining issues and that he
from office. haviors that might not violate decision that has put pressure “I’m going to go home and a favor, though” and to “look planned to update Mr. Trump
“There’s no chance the presi- criminal statutes, an interpreta- on many Democrats who were I’m going to talk to folks in my into” Democrat Joe Biden. on the talks later Thursday.
dent is going to be removed tion shared by many constitu- elected from districts that also district,” she said. Republicans say that Demo- The agreement covers
from office,” Senate Majority tional scholars. backed Mr. Trump. Republicans have remained crats are reading too much into nearly $1.4 trillion in discre-
Leader Mitch McConnell (R., “There are no crimes With some Democrats de- united against impeachment, the call, and that the witness tionary government spending
Ky.) told Sean Hannity of Fox here?” said Rep. Eric Swalwell clining to say whether they even among the few GOP law- testimony on which Democrats across a dozen bills for the rest
News on Thursday night. (D., Calif.). “How about the would support the articles of makers who have faulted Mr. rely is secondhand. of the fiscal year, which ends
Sept. 30, 2020. Negotiators still
need to agree on the language

House Passes Bill to Reduce Drug Prices

of legislation, which is ex-
pected to be released on Mon-
day, leaving the two sides the
weekend to iron out any final
BY STEPHANIE ARMOUR controls. President Trump has has to choose between paying issues.
threatened to veto the plan. for prescription drugs or put- The agreement, if finalized,
WASHINGTON—The House Some Republicans and ting food on the table,” said would be a compromise on the
passed far-reaching legislation pharmaceutical lobbying Rep. Max Rose (D., N.Y.). contentious issue of a proposed
to lower drug prices, bolster- groups have said the plan Lawmakers have struggled border wall between the U.S.
ing Democrats’ health-care would discourage investment to unify around legislation to and Mexico.
message in the 2020 election in research on new cures and lower prescription drug prices Under the deal, Congress
campaign, although the bill treatments. Pharmaceutical even though both parties are would approve roughly the
has almost no chance to be Research and Manufacturers eager to claim progress before same amount of funding it did
taken up by the Republican- of America, the industry’s pri- the 2020 election. In a Kaiser
GEORGE FREY/GETTY IMAGES

controlled Senate. mary lobbying group. has said Family Foundation poll in Sep-
The passage of the package it would siphon $1 trillion or tember, 70% of the public said
championed by House Speaker more from biopharmaceutical lowering prescription drug
The president ‘likes
Nancy Pelosi would empower innovation over 10 years, lead- costs should be a priority for what he sees’ in the
the federal government to ne- ing to fewer drugs. Congress in the coming year.
gotiate prices for certain Mrs. Pelosi pushed her leg- Mr. Trump has retreated
deal that includes
costly drugs in Medicare and islation through despite initial from his 2016 campaign pledge funding for a wall.
the private market. The legis- objections from progressive The House bill, which is unlikely to be taken up in the Senate, would to let Medicare negotiate for
lation—which passed 230-192, members who said the bill cap out-of-pocket prescription-drug costs for people on Medicare. drug prices. The White House
with 228 Democrats voting in wasn’t aggressive enough and has backed away from support-
support, joined by two Repub- didn’t open enough drugs in House Minority Leader highlights a lack of action by ing Mrs. Pelosi’s bill after ini- last fiscal year for building a
licans—would limit out-of- Medicare to negotiation. Kevin McCarthy (R., Calif.) Republicans and Mr. Trump. tially negotiating with her on it. barrier—$1.38 billion—while
pocket prescription-drug costs Mrs. Pelosi cheered the pas- called the bill “political pos- Democrats are likely to use the Republicans say the House leaving the president’s ability
for people in Medicare and ex- sage, saying, “Prescription drug turing,” adding, “It won’t be- bill’s passage to spotlight work legislation marked a purposeful to redirect government funds
pand the program to cover prices are out of control,” add- come law. It will be another they are doing beyond im- effort to undermine support for untouched, according to four of
dental, vision and hearing. ing that pharmaceutical compa- talking point.” peachment. a bipartisan Senate Finance the people familiar with the ne-
The bill won’t pass before nies are reaping record profits Democrats say the House “This bill does not cater to a Committee drug-pricing bill gotiations.
next year’s election because while 58 million Americans passage proves the party can base, this bill does not cater to pushed by GOP Sen. Chuck President Trump had asked
Republicans largely object to couldn’t afford to fill a pre- deliver on campaign pledges to big pharma, but this bill does Grassley of Iowa and Democrat for $8.6 billion for the wall in
measures they are calling price scription they needed last year. bring down drug prices, and cater to that family tonight that Sen. Ron Wyden of Oregon. his budget request, and Demo-
crats had sought to block new
funding for the wall and curb

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challenge President Trump’s
economic policies in a general
election.
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the president’s ability to redes-
ignate money to build it.
Mr. Trump has siphoned
money from the Pentagon, in-
cluding $3.6 billion for military
construction projects, to build
a wall, though that effort has
in Manchester, N.H., billed as rally Americans around big been repeatedly challenged in
an economic address, accused ideas to solve the problems court.
rivals—without naming them— that have festered in Washing- The funding agreement
of harboring the “naive hope” ton for too long.” wouldn’t restore funding for
that the GOP would accept lib- Mr. Biden didn’t immedi- the projects that lost money to
eral priorities if Democrats ately have a comment on Ms. wall construction, a key Demo-
“adopt Republican critiques of Warren’s speech. cratic demand, according to
progressive policies.” Ms. Warren’s sharp words three of the people.
Some of Ms. Warren’s back- underscore her new reality af- Deep disagreements about
ers have accused Mr. Buttigieg, ter a spate of good polls and paying for the border wall have
the mayor of South Bend, Ind., growing fundraising over the racked the spending process
of using arguments pushed by summer: She is jockeying for for years, holding up hundreds
Republicans in opposition to position as momentum in Iowa of billions in other funding and
her plan to make higher educa- shifts in Mr. Buttigieg’s favor. leading to the longest govern-
tion free for all Americans. He Mr. Biden, the former vice pres- ment shutdown in U.S. history,
says Democrats shouldn’t ex- ident, has remained at the top which ended earlier this year.
tend free tuition to the chil- in most national polls during Congress has temporarily ex-
dren of wealthy people. the primary race so far. tended funding twice in the last
She also indirectly belittled Ms. Warren for months had few months as the two sides
Mr. Biden’s insistence that, if declined to take on her rivals haggled over the border wall, a
elected president, he could directly. “I’m not here today to central priority for Mr. Trump.
persuade Republicans to get criticize other Democrats,” Ms. If the tentative deal moves
on board with his more mod- Warren told reporters in mid- forward, lawmakers will still
erate policy agenda. November when asked to re- face a tight schedule to pass
“Unlike some candidates for spond to criticism from Mr. Bi- each of the dozen annual
the Democratic nomination, den. “I’m here to talk about spending bills before the last
I’m not counting on Republican why I’m running for president.” stopgap measure expires after
politicians having an epiphany She started to ease from that Dec. 20—and many lawmakers
and suddenly supporting the position after seeing an open- plan to head home for the holi-
kinds of tax increases on the ing to go after Mr. Buttigieg’s days. House members said they
rich or big-business account- practice of funding his cam- aim to bring packages of the
Order by
ability they have opposed un- paign in part through closed- bills to the floor on Tuesday,
12/20 for
Christmas! der Democratic presidents for door fundraisers, which allies giving the Senate just days to
a generation,” she said. said tied into her overall theme decide on the legislation before
Lis Smith, a spokeswoman of criticizing the ways the the end of next week.
for Mr. Buttigieg, said: “Sen. wealthy influence Washington. The agreement still could
Warren’s idea of how to defeat Adam Green, a progressive face resistance both from Dem-
Donald Trump is to tell people activist who is backing Ms. ocrats resistant to supporting
who don’t support her that Warren, cited an adage to ex- any wall funding and Republi-
they are unwelcome in the plain Ms. Warren’s new strat- cans who hoped to see more
fight.…Pete will be a president egy: “If you want to attract a money spent on border secu-
who will heal our divides and crowd, pick a fight.” rity.
 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.

THE WALL STREET JOURNAL. Friday, December 13, 2019 | A5

 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.

A6 | Friday, December 13, 2019 * *** THE WALL STREET JOURNAL.

U.S. NEWS

U.S. Tests Missile After

Withdrawing From Treaty

U.S. DEPARTMENT OF DEFENSE/AGENCE FRANCE-PRESSE/GETTY IMAGES

BY MICHAEL R. GORDON totype of the missile was fired
from Vandenberg Air Force
WASHINGTON—The U.S. Base in California and flew
conducted its first flight test more than 300 miles before
of a new land-based ballistic landing in the ocean, the Pen-
missile since the demise of the tagon said.
1987 treaty banning interme- “Data collected and lessons
diate-range nuclear forces. learned from this test will in-
The American military has form the Department of De-
long eyed the development of fense’s development of future
such mid-range missiles— intermediate-range capabili-
which would be conventionally ties,” the Pentagon said.
armed with no nuclear war- The test was made possible
heads—as a way to counter in August when the U.S. with-
China. drew from the 1987 treaty,
“Once we develop interme- which banned the U.S. and Rus-
diate-range missiles and if my sia from testing or deploying
commanders require them, land-based missiles—conven-
then we will work closely and tionally armed or nuclear-
consult closely with our allies armed—with a range of 300 to
in Europe, Asia and elsewhere 3,400 miles, alleging that Mos-
with regards to any possible cow had long violated the ac-
deployments,” Defense Secre- cord.
tary Mark Esper told reporters Elbridge Colby, who led the
on Thursday after the test, team that helped develop the
without stating a time frame. Pentagon’s military strategy to
A senior Defense official counter China and Russia, said
said in March that it could the new missile would be an
take five years to fully develop important addition to the U.S.
and field the new missile, as- non-nuclear arsenal.
suming the weapon’s eventual “It is an important step for-
production and deployment ward in strengthening our con-
wins congressional approval. ventional posture, especially in
The test took place at 8:30 Asia,” said Mr. Colby, who left
a.m. Pacific time when a pro- the Pentagon last year.
The new land-based
weapon, Mr. Colby said, would
present the Chinese military
with more U.S. systems to
worry about and would also be
more cost-effective for the
U.S. than air- and sea-based
variants that are launched
from expensive planes and
ships. While Asian nations
might be reluctant to allow
the U.S. to base the missiles
on their territory, Mr. Colby
said the allies’ thinking would
change if Beijing’s armed
forces are perceived as a
growing threat.
Arms-control groups counter The Pentagon released this image of a ballistic missile being launched from Vandenberg Air Force Base.
that the development of a new
conventionally armed system turn, could put U.S. and Chi- sion of the Navy’s Tomahawk some within range of Western
that could quickly strike deep nese military forces on more cruise missile. That cruise Europe.
into China, Russia and North of a hair trigger in a crisis, he missile was launched from San Russia has denied the long-
Korea would be destabilizing. argued. Nicolas Island and struck its standing allegation, made by
“For that reason and oth- Guam, a Pacific island that target after flying more than Obama and Trump administra-
ers, it seems highly unlikely is home to major U.S. military 300 miles. tion officials, that this missile
that U.S. allies in Europe or bases, is about 2,000 miles Russia is well ahead of the violated the 1987 treaty. After
Asia would ever agree to host south-southeast of North Ko- U.S. in the development of in- the U.S. said it was leaving the
such a system,” said Kingston rea and 1,800 miles southeast termediate-range land-based treaty because of Russia’s al-
Reif of the Arms Control Asso- of China. missiles, according to U.S. in- leged violations, Moscow also
ciation. “We could deploy such The new ballistic missile is telligence. pulled out of the accord.
a missile in Guam, but its sur- the second weapon the Penta- In January, Western offi- Russian President Vladimir
vivability wouldn’t be assured gon has tested that had previ- cials said that Russia had al- Putin has said that his country
there,” Mr. Reif added, refer- ously been banned by the 1987 ready produced nearly 100 of won’t deploy intermediate-
ring to China’s ability to target treaty. In August, it flight- its 9M729 land-based cruise range land-based missiles un-
the Pacific island. That, in tested a ground-launched ver- missiles and had deployed less the U.S. does.

Trump Sullivan
Agrees to Confirmed
Trade Deal As Envoy
Continued from Page One
bury said.
To Russia
In what Mr. Pillsbury de- BY COURTNEY MCBRIDE
scribed as a “goodwill ges-
ture,” the U.S. plans to an- The Senate confirmed John
nounce some tariff rate cuts Sullivan to serve as the next
Friday. “The president is up- U.S. ambassador to Russia, fill-
beat and enthusiastic about ing an important diplomatic
his breakthrough,” according post amid a challenging period
to Mr. Pillsbury, a China in relations between Washing-
scholar who advises the ton and Moscow.
Trump administration. Mr. Sullivan, now deputy
The president has stressed secretary of state, was con-
TANNEN MAURY/EPA/SHUTTERSTOCK

that a so-called phase one firmed in a 70-22 vote on

deal—which also includes Thursday. The approval cleared
measures to improve intellec- the way for the Senate to take
tual property protection, open up the nomination of Stephen
the Chinese financial-services Biegun, the special representa-
market and prevent currency tive for North Korea, to suc-
manipulation—is expected to ceed Mr. Sullivan in the State
lead to a phase two deal. That Department’s No. 2 role.
agreement would tackle more A State Department official
difficult problems, including The deal calls for China to buy $50 billion in agricultural and other goods in exchange for lower tariff rates, a presidential adviser said. said Mr. Sullivan would remain
forced-technology transfer, in his current role until Mr.
subsidies, and the behavior of with U.S. and Mexican offi- Biegun has been confirmed as
Chinese state-owned firms. China Will Do More While the conference wasn’t U.S. trade tensions escalating, cials on a revised North his successor.
The Chinese Embassy convened to address the trade Beijing has been gradually eas- American trade pact expected As deputy secretary, Mr.
didn’t respond to a request to To Ensure Growth war, the continuing trade dis- ing up on those efforts and in- to win congressional ratifica- Sullivan led a pair of dialogues
comment. pute with the U.S. loomed heav- creasingly prioritizing raw tion in coming months. between the U.S. and Russia on
The limited trade pact ily over the proceedings. The growth. The phase one deal with counterterrorism and strategic
could help revive U.S. agricul- BEIJING—Chinese leaders U.S. was scheduled to add 15% In 2019 alone, Beijing has China, if completed, would security. He previously served
tural exports to China. Such pledged stepped-up efforts to tariffs on roughly $165 billion of cut taxes, pushed banks to lend cover only a small portion of as general counsel and deputy
sales had collapsed over the boost slowing growth, as they Chinese products Sunday, but more and instructed local au- the U.S. complaints against secretary at the Commerce De-
past year and a half, with try to manage a downshift in a President Trump has now thorities to front-load bond issu- China’s trade practices, leav- partment during the adminis-
China retaliating against U.S. maturing economy and fallout agreed to a limited trade agree- ances in order to fund big-ticket ing largely untouched such tration of President George W.
tariffs by halting farm pur- from the trade war with the U.S. ment with China that would infrastructure projects. In order fundamental issues as subsi- Bush and held senior positions
chases. An economic blueprint, ap- cancel those levies and roll back to counter U.S. tariffs, China’s dies and Chinese pressure on at the Defense Department and
U.S. farm exports fell from proved Thursday by President Xi existing tariff rates. central bank has let its currency, American firms to share tech- the Justice Department.
as much as $25 billion in re- Jinping and other Chinese lead- The Chinese leadership’s tilt the yuan, depreciate. nology.
cent years to below $7 billion ers at the end of an annual toward an emphasis on eco- Even so, the rate of eco- Many in the U.S. business
in the 12 months through closed-door conclave, promised nomic growth appears to be a nomic expansion has roughly community remain skeptical
May, according to Commerce more fiscal and monetary mea- recognition that Chinese policy halved during the past decade that discussions on phase two
The new U.S.
Department data. sures with the aim of support- makers’ recent focus on reining to 6% in the past quarter, the or phase three deals will bear ambassador to
Farm exports to China have ing everything from consump- in debt may have gone too far. bottom end of Beijing’s target fruit.
begun to climb in recent tion to infrastructure investment In recent years, Beijing has at- range for 2019. Slowing growth In recent months, the U.S.
Russia is now deputy
months as the two sides and employment in the coming tempted to strike a balance be- has also weighed on the coun- has been collecting about $5 secretary of state.
reached a truce, but remain year—all to ensure that the tween deleveraging and stimu- try’s smaller banks, sparking billion a month from the tar-
nearly 60% lower than their growth rate will be kept stable. lating growth—a policy that concerns of contagion, while pri- iffs on China, which are paid
pre-trade war peak. The plan is aimed at coun- threatens to exacerbate the vate businesses are defaulting by U.S. importers.
Mr. Trump declared two tering a protracted slowdown debt situation. on a record amount of bond If all the tariff rates were Along with other State De-
months ago the two countries that has seen the economy In large part because of its payments. cut in half, it would save partment officials, Mr. Sullivan
had reached a framework for slow to its weakest pace in de- stimulus efforts during the past Chinese leaders also signaled American companies about had been drawn into the im-
a limited pact to halt the cades, and represents a continu- decade, debt levels in China their stepped-up attention on $2.5 billion a month, or $30 peachment proceedings
trade war and allow negotia- ation of efforts this year to sup- reached a peak of more than the housing sector, with pledges billion a year, in tariff pay- against President Trump over
tion on possible future port the economy. 270% of its $13.6 trillion econ- to stabilize land prices, property ments. his dealings with Ukraine. He
phases. “The downward pressure on omy last year, according to prices and people’s expectations. Gregory Daco, chief U.S. told members of the Senate
Yet efforts to finalize terms the economy has increased” UBS—a level that worried many The official readout mentioned economist at Oxford Econom- Foreign Relations Committee
proved elusive until Thursday, with this year seeing “a clear in- policy makers and prompted the need for “stability” many ics, estimates that cutting the during an Oct. 30 confirmation
just days before new tariffs crease in risks and challenges at them to intensify their cam- more times than the statement tariffs by half would boost hearing that he was aware of
targeting iPhones, toys and home and abroad,” said a state- paign of tamping down asset from last year’s economic con- U.S. economic growth by the “campaign” by the presi-
other consumer goods were ment by the state-run Xinhua bubbles and financial risks. Now, ference did. about 0.2 percentage point dent’s personal attorney, Rudy
set to take effect. News Agency. with the economy softening and —Chao Deng next year, but cautioned that Giuliani, to remove Marie Yo-
Trade groups hailed Thurs- uncertainty would likely lin- vanovitch, then the U.S. am-
day’s progress as a welcome ger. bassador to Ukraine.
respite. Importers, retailers Composite advanced 63.27 commitments from the Chi- tration. “Importantly, we can’t re- Ms. Yovanovitch, a career
and other American firms had points, or 0.7%, to 8717.32. nese government to enact “The president will get verse the damage already foreign-service officer, previ-
worried more duties—essen- Some raised concerns that substantive, enforceable, and hammered on a deal no mat- done by the two-year long ously testified in the House in-
tially U.S. taxes charged at rolling back tariff rates could permanent structural reform ter what—the real test is if he trade war, nor omit the dense quiry that Mr. Sullivan had in-
the border—would have the take away U.S. bargaining will jeopardize American jobs sticks to it when the heat fog of uncertainty that will formed her that the president
effect of raising prices or clout for future negotiations and long-term economic pros- rises.” continue to restrain business had lost confidence in her.
hurting sales. with China on later phases of perity.” The White House had no and consumer activity in Mr. Sullivan also told sena-
“We welcome the news the deal. In the past, emerging deals immediate comment on the 2020,” Mr. Daco said. tors he was aware of the tem-
that a U.S.-China phase one Sen. Marco Rubio (R., Fla.), with China have collapsed, in- emerging agreement Most economists estimate porary suspension of security
deal is imminent,” said Myron an outspoken China critic, cluding a nearly completed “Getting VERY close to a that the tariffs had taken a assistance to Ukraine, but
Brilliant, executive vice presi- said via Twitter that the pact in May whose demise BIG DEAL with China,” Presi- toll on the U.S., contributing wasn’t aware of an alleged link
dent and head of interna- “White House should consider triggered a sharp escalation dent Trump wrote in a tweet to U.S. economic growth slow- between that aid and a request
tional affairs at the U.S. the risk that a near-term deal in tariffs from Mr. Trump and Thursday morning: “They ing to about 2% in recent by Mr. Trump for Ukraine to
Chamber of Commerce. “It with China would give away a reduction in offers to make want it and so do we!” quarters, from about 3% last investigate former Vice Presi-
will bring stability to the U.S.- the tariff leverage needed for economic overhauls in China. If the two countries con- year. dent Joe Biden and his son
China relationship, but make a broader agreement on the Trade experts cautioned that firm and sign the limited The International Monetary Hunter.
no mistake about it: There is issues that matter the most any final deal should include pact, it will show the Trump Fund, for example, has esti- Mr. Trump tapped Mr. Sulli-
still more work ahead and such as subsidies to domestic a complete text backed by administration is eager to fol- mated the tariffs would lower van for the ambassador post in
more problems to be solved.” firms, forced tech transfers & Washington and Beijing. low through on promises to U.S. growth by 0.6%. The toll October following the resigna-
The Dow Jones Industrial blocking U.S. firms access to “Without public text of the notch new deals with trading was even sharper on China, tion of Jon Huntsman.
Average rose 220.75 points, or key sectors.” agreement, there is no true partners on the eve of his with growth estimated to In the separate confirmation
0.8%, to 28132.05 on Thurs- Senate Democratic leader deal,” said Derek Scissors, a 2020 election year and possi- drop 2%. proceedings for Mr. Biegun,
day. The S&P 500 gained Chuck Schumer of New York trade expert at the American ble impeachment. —Alex Leary, Tim Puko lawmakers queried him on his
26.94 points, or 0.9%, to led a letter from Democrats Enterprise Institute who has On Tuesday, House Demo- and Andrew Restuccia independence and willingness
3168.57, while the Nasdaq saying that “failure to secure advised the Trump adminis- crats said they reached a deal contributed to this article. to defend career diplomats.
 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.
THE WALL STREET JOURNAL.
A Boost for Brexit—but More Work Ahead
Britain will be able to
set own deals and
rules but lose say in
European decisions
BY STEPHEN FIDLER
AND LAURENCE NORMAN
LONDON—A victory for Bo-
ris Johnson in Thursday’s gen-
eral election signals the end of
the beginning of Britain’s jour-
ney out of the European
Union.
After almost four years of
national melodrama over
Brexit, Mr. Johnson has now
secured the parliamentary ma-
jority he needs for his deal with
the EU, allowing the U.K. to
leave the bloc on Jan. 31.
That step will settle the di-
vorce, but it won’t lay to rest
the uncertainty around Brexit.
Once Britain leaves the EU, ne-
gotiations will start over a
complex and divisive question:
What should be the U.K.’s fu-
ture relationship with the huge
trading bloc on its doorstep?
The debate will echo the
political arguments of the past
three years over Brexit and is
likely to mark an enduring di-
vide in British politics.
Should the country accept
EU norms on issues such as
regulation of labor, products
and the environment? Should
it deviate from them in an ef-
fort to become a swashbuck-
ling, globally focused economic
power with less exacting stan-
dards—as some pro-Brexit
campaigners want and many
anti-Brexit voters fear?
The machinery of the British
state will be absorbed for years
In U.K. as in U.S.,
Voters’ Ties Shift
BY MAX COLCHESTER
AND JAMES HOOKWAY
LONDON—Boris Johnson’s
victory in Thursday’s British
elections was propelled by a
striking shift in voter alle-
giances that mirrors a realign-
ment seen in the U.S. and else-
where in the West.
Mr. Johnson’s Conservative
Party, long identified with Brit-
ain’s upper classes, captured a
swath of blue-collar districts
that for decades voted for left-
leaning Labour politicians who
positioned themselves as
champions of workers.
The key driver of the
change in the U.K.: Brexit. The
2016 referendum exposed
stark divides in British society
between older, Brexit-backing
working-class voters, who
have lost out in globalization,
and urban, white-collar work-
ers, who largely voted to stay
in the trade bloc.
“It appears that the class-
party link is going into re-
verse,” said Vernon Bogdanor,
professor of government at
King’s College London.
During the campaign Mr.
Johnson, a product of Britain’s
elite private schools, played up
the patriotism of Brexit and
toned down talk of free mar-
kets. He promised to pour gov-
ernment funds into left-behind
parts of the country.
In one of the first declared
results, Mr. Johnson’s party
took the Blyth Valley district,
Boris Johnson’s
campaign aimed to
sweep up blue-collar
supporters, and did.
a former coal-mining area in
Northern England that had
voted Labour since 1950.
Given that many in the Con-
servatives view quitting the
EU as an opportunity to cut
red tape and strike free-trade
deals around the globe, how-
ever, it is unclear whether Mr.
Johnson will deliver the pro-
tection from globalization
sought by many of these new
voters for his party.
The emerging voting pat-
tern in Britain mirrors the po-
litical shift seen elsewhere in
the U.S. and Europe.
The U.S. Democratic Party,
once the party of the working
class, now represents more
communities where incomes
are relatively high and college
degrees plentiful. The Republi-
cans, who once had the reputa-
* * * * * *
Exit-poll results were projected on the British Broadcasting Corp.’s London office Thursday as the ballots began to be counted.
by the consequences of the
Brexit decision. On Jan. 31,
doors in Brussels will finally
close to British diplomats and
officials. British lawmakers will
leave the European Parliament.
After years inside the room as
decisions are made, the U.K.
will be outside, seeking to in-
fluence them.
Other doors could open. the
tion as the party of the country-
club elite, now appeal to more
white, working-class voters.
The changes were vividly
seen in the 2016 presidential
election, when blue-collar vot-
ers in industrial states that
had voted Democratic in re-
cent years instead backed
Donald Trump. That helped
flip Michigan, Wisconsin and
Pennsylvania to the Republi-
cans in the Electoral College.
In continental Europe, the
shift has taken a different
form, with voters abandoning
historic centrist parties and
flocking to upstarts. In some
places—as with the votes for
Brexit and for Mr. Trump—this
has been motivated by con-
cerns about immigration.
Support for established par-
ties in France—the Socialists
and the conservative Republi-
cans—has collapsed, driving
voters to Marine Le Pen’s far-
right National Rally or to the
fledgling centrist party of Presi-
dent Emmanuel Macron. In Ger-
many, traditional centrist par-
ties have lost ground to smaller
parties, including the national-
ist Alternative for Germany.
For Britain, the picture has
been shaped by the 2016 refer-
endum vote to leave the Euro-
pean Union. The decision to
break with the U.K.’s biggest
trading partner cut across
party lines. Roughly a third of
Labour supporters voted to
quit the EU, according to the
independent British Election
Study. Meanwhile, 61% of Con-
servatives voted for Brexit.
Britons now affiliate them-
selves more with a stance on
Brexit than with a particular
political party.
Mr. Johnson’s election cam-
paign aimed to sweep up blue-
collar supporters in places like
Dudley North, a district in the
English Midlands that has
voted in only Labour lawmak-
ers since it was created in a
redistricting two decades ago.
Before Brexit, Dudley North
was considered part of the La-
bour Party’s “Red Wall,” a
chain of districts stretching
across the center of the coun-
try. But with much of the in-
dustry now gone, Dudley has
struggled to keep up with
wealthier parts of the country
closer to London. In 2016, the
district voted 71% for Britain
to leave the EU in what some
people there described as a
roll of the dice to provide the
town a better future.
Edward Tate, 46, voted for
Brexit in 2016 and on Thurs-
day for the Conservatives
Party. “It’s the only way to get
what I voted for three years
back,” he said.
WORLD NEWS
U.K. will be able to start nego-
tiating trade deals and have
more leeway to set its own
economic regulation. But
those freedoms will be shaped
by the nature of the U.K.’s fu-
ture relationship with the EU.
For the U.K., there will be a
trade-off that will replicate the
divisions over the Brexit deal.
If it wants a close economic
Voters lined up in London Thursday. Below, Labour Party leader Jeremy Corbyn and Brexit Party candidate Yosef David awaited results.
Johnson
Leads Party
To Big Win
Continued from Page One
get Brexit done.”
The main opposition Labour
Party was on track to score its
worst election performance
since 1935, with a projected
tally of 201 seats.
The outcome appeared to
sink the leadership of Labour’s
leader Jeremy Corbyn, who
campaigned on the party’s
most left-wing manifesto in
decades with proposals for
large increases in government
spending and nationalization
of key industries. Early on Fri-
day he said he wouldn’t run in
the next election but would re-
main at the helm of his party
during a period of “reflection
and discussion” as it transi-
tions to a new leader.
For Mr. Johnson the result
vindicates a bold transforma-
tion of his Conservative Party
into a political machine that
could appeal to voters span-
ning from the landed gentry to
the working class.
He promised extra govern-
ment spending to reverse
some of the effects of a decade
of public belt-tightening since
the financial crash. But his tri-
umph came largely on the
back of a simple message that
a vote for the Conservatives
would “Get Brexit Done.”
That Brexit appeal flipped
districts long considered La-
bour bastions. For its first gain
of the evening, Mr. Johnson’s
party took Blyth Valley, a for-
mer coal-mining district in Eng-
land’s northeast, a seat that had
been held by Labour since 1950.
Later, his party won Leigh, a
Labour district that was rav-
aged by spending cuts under
previous Conservative govern-
ments. Meanwhile, the Conser-
vatives managed to hold on to
seats in areas of the country,
such as Kensington in London,
that backed staying in the EU.
“Brexit has dominated, we
thought other issues could cut
through,” said John McDonnell,
relationship with the bloc to
not disrupt current trading
patterns, it will have to accept
many EU rules and regulations
over which it will no longer
have a say.
If it wants a more distant
relationship, it will disrupt
current cross-border com-
merce—but will get to make
its own choices about how to
Projected Results
Seats per party
Conservative
Labour
Scottish National Party
35
Liberal Democrat
Other
Note: Projections based on incomplete vote count as of 10:30 p.m. EST
Source: BBC
a leading Labour lawmaker.
“But they haven’t.” He said the
results, if correct, were “ex-
tremely disappointing.”
The picture was different in
Scotland, where the pro-inde-
pendence Scottish National
Party were projected to win all
but four of the country’s 59
seats, a gain of 20 districts.
That outcome likely puts Scot-
tish independence back on the
political agenda.
The leader of the pro-EU
Liberal Democratic Party, Jo
Swinson, lost her seat to the
Scottish Nationalists.
The British pound rose
sharply late Thursday as the
first exit poll was released,
surging 2.5% against the dollar
and reaching its highest level
since May 2018.
The vote marks a remarkable
Friday, December 13, 2019 | A7
Scotland Chooses
A Separate Path
LONDON—Boris Johnson’s
big victory was almost entirely
due to voters in England who
like his promise to deliver
Brexit. In Scotland, the election
exit poll predicted a very dif-
ferent outcome: a landslide for
the Scottish National Party,
with 55 of the country’s 59
parliamentary districts.
That would be a gain of 20
seats compared with the 2017
election for the party that fa-
vors splitting Scotland off
from the rest of the U.K. The
scale of that victory for SNP
PAUL HARDING/BBC/AGENCE FRANCE-PRESSE/GETTY IMAGES
leader Nicola Sturgeon would
mean that as the U.K. leaves
the European Union, Scottish
independence will be back on
the British political menu.
In a referendum on Scot-
tish independence in 2014,
Scotland voted to stay in the
U.K. Ms. Sturgeon has argued
for a second referendum, but
that decision is for the British
government to decide. Mr.
Johnson has ruled this out.
—Max Colchester
and Stephen Fidler
regulate the economy. U.K., the EU will insist on in-
One example: a possible Brit- creased border checks on Brit-
ish free-trade agreement with ish exports to ensure nonstan-
the U.S. Any wide-ranging ac- dard U.S. goods don’t enter
cord with the U.S. would have the EU market.
to include significantly greater On the other hand, if the U.K.
access for U.S. farm products to sticks to EU standards to ease
the British markets. trade flows with what currently
But many U.S. farm prod- is its largest trading partner, it
ucts don’t meet EU standards. won’t be able to import many
If they are pouring into the U.S. agricultural products.
CHRIS RATCLIFFE/BLOOMBERG NEWS
HANNAH MCKAY/REUTERS
vorce deal with the EU negoti-
ated by the government—while
New Parliament (projected) also making sure the U.K. didn’t
Departing Parliament Majority 6 leave the bloc without a deal.
Mr. Johnson’s EU deal cov-
357 ers divorce issues needed to
298 unwind the U.K.’s 45-year
201 membership in the EU, includ-
ing the rights of their respec-
243
tive citizens, a settlement of
55 the debts the U.K. owes the EU
and an arrangement to pre-
13 vent a border arising on the
20 island of Ireland.
But its ratification won’t
24
end the Brexit odyssey: The
54
next challenge will be to nego-
tiate future ties between the
U.K. and the EU.
Mr. Johnson’s government
turnaround for Mr. Johnson, will have to unmoor an econ-
who in the space of five months omy tightly integrated to the
renegotiated a Brexit divorce trade bloc while minimizing
deal with the EU and rallied his the immediate damage to Brit-
divided party and Britain’s ex- ain’s business interests. Only
asperated voters behind it. after future ties with the EU
A majority of the projected are settled will it be possible
size would allow him to to delve into negotiations to
quickly push the withdrawal tighten trade ties with other
deal he negotiated with the EU nations, including the U.S.
through Parliament, allowing Once the U.K. leaves the EU,
Britain to formally leave the it will enter a transition pe-
bloc on Jan. 31. It would also riod in which trade and other
give him greater leeway in relations don’t change.
Parliament to steer future Mr. Johnson has repeatedly
trade talks with the EU in any said he wants this transition
direction he chooses. period to finish at the end of
Since the 2016 Brexit refer- 2020, when a trade deal he
endum, Britain’s political sys- hopes to negotiate over the
tem was pushed to the breaking course of next year would kick
point as traditional party alle- in. After that, he has said he
giances melted over the issue wants the U.K. to be free to di-
of Brexit. Lawmakers repeat- verge significantly from EU
edly refused to endorse a di- rules and regulations.
 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.
A8 | Friday, December 13, 2019
Saudis Seek to Ease Tensions With Iran
Oil-facilities attack was
‘game-changer’ for
Riyadh; stance aims to
protect economy
Saudi Arabia is quietly try-
ing to mend fences with Iran
and other regional foes as offi-
cials in the kingdom have
grown more worried about the
risks conflict poses to its oil-
dependent economy.
By Benoit Faucon in
Paris, Summer Said in
Dubai and Warren P.
Strobel in Washington
Riyadh’s interest in better
relations with regional rivals
comes as Saudi officials ques-
tion how much backing it has
from the U.S. and other allies.
Saudi calculations changed af-
ter a cruise-missile and drone
strike—blamed on Tehran—
temporarily disabled a large
portion of the country’s crude
production this year. Washing-
ton didn’t hit back at Iran after
the attack, but it sent troops to
strengthen Saudi defenses.
“The Sept. 14 attack was a
game-changer,” one Saudi offi-
cial said.
Representatives of Saudi Ara-
bia and Iran have directly ex-
changed messages in recent
months and also communicated
through intermediaries in Oman,
Kuwait and Pakistan, according
to Saudi, European and U.S. offi-
cials. The main focus of the
communications, these officials
say, has been easing tensions be-
tween Saudi Arabia and Iran.
According to Iran’s ambas-
sador to Paris, Bahram
Ghasemi, and other officials,
Tehran has floated a peace
plan to the Saudis that includes
a mutual pledge of nonaggres-
sion and cooperation, aimed at
securing oil exports following a
spate of tanker attacks.
Mine explosions struck
Saudi, Emirati and Japanese
oil tankers this year near the
strategic Strait of Hormuz.
Those attacks, which the U.S.
blamed on Iran, were followed
by explosions in October on an
Iranian tanker that Tehran
The Wall Street
Journal would like
to thank the sponsors
of the 2019 CEO
Council Washington,
D.C. Meeting for
their generous
support.
CEO Council is by invitation.
Learn more at CEOCouncil.wsj.com/inquire
© 2019 DowJones & Co. Inc. All rights reserved. 3DJ8137
The damaged site of a Saudi oil facility in Abqaiq as pictured in September. Riyadh’s outreach effort is aimed at ensuring the continued flow of
oil exports from the Gulf and the winding down of fighting in Yemen at a key time for Prince Salman. Below, graves in the Yemeni capital, San’a.
blamed on an unnamed for-
eign government. The inci-
dents have driven up the cost
of shipping.
Riyadh has also engaged in
secret talks with Iranian-
backed Houthi rebels it has
been fighting in Yemen for
years, according to Arab and
U.S. officials. The conflict
there has created what the
United Nations has described
as the world’s worst humani-
tarian crisis. The two sides
now have a hotline in an effort
WORLD NEWS
to minimize potential clashes,
a Western official said.
Houthi forces initiated the
push for talks in September
with a proposal for a unilat-
eral cease-fire; the Saudis re-
sponded with a partial cease-
fire of their own.
“Realpolitik has set in,” one
senior U.S. official said, with
the Saudis recognizing that
“they’ve just got to pare down
on the challenges they have on
multiple fronts.”
The Saudi Embassy in
* *** THE WALL STREET JOURNAL.
Salman, who is trying to re-
make the kingdom’s economy.
The initial public offer of
Saudi Aramco, which started
trading Wednesday, is a cata-
lyst for raising funds to seed
real estate, tourism and tech-
nology projects in the king-
dom. But following the Sep-
tember attack, concerns have
grown over the security of
Aramco’s assets.
A second Saudi official said
the kingdom was compelled to
engage with Iran as it prepared
for Aramco’s listing. The initial
public offering from the oil gi-
ant was valued last week at
$1.7 trillion. Aramco’s shares
rose on Thursday, briefly hit-
HAMAD MOHAMMED/REUTERS
ting Prince Mohammed’s valua-
tion target of $2 trillion, before
ending the day’s trading just
shy of that mark.
The prospect of a wider con-
flict with Iran jeopardizes Saudi
oil exports and risks scaring
away overseas investors the
kingdom needs for fresh capital,
cutting-edge technology and
management know-how.
Other players in the region,
including the United Arab
BANDAR AL-JALOUD/SAUDI ROYAL PALACE/A FP/GETTY IMAGES
Emirates, are skeptical of Ri-
yadh’s outreach to Iran. U.S. of-
ficials have also publicly
warned that Iran might be
planning a new attack in the re-
gion.
Saudi Arabia doesn’t “trust
YAHYA ARHAB/EPA/SHUTTERSTOCK
the Iranians,” said a Saudi of-
ficial, but Riyadh hopes it “can
at least come to an agreement
to stop possible attacks.”
Tehran, hard hit by the
Trump administration’s cam-
paign of economic sanctions, has
expressed an interest in detente.
Despite years of enmity, Iranian
officials have previously raised
Washington and the Royal pecially Washington, where the hope that Saudi Arabia could
Court in Riyadh didn’t respond lawmakers from both parties act as an intermediary in an eco-
to requests to comment. want to see Riyadh end the war nomic-relief package—using its
Iran’s delegation to the U.N. in Yemen and hold people ac- special relationship with Wash-
likewise didn’t respond to a countable for the killing of ington to end sanctions rather
request to comment. Saudi writer Jamal Khashoggi. than encourage them.
“Iran doesn’t want the con- Riyadh is facing renewed While Iranian moderates
tinuation of tensions. We are questions from U.S. lawmakers have backed rapprochement
seeking peace,” Mr. Ghasemi about its reliability as an ally af- with regional powers, conser-
said in an Oct. 30 interview. He ter a Saudi Air Force trainee vatives see a robust security
couldn’t be reached to comment killed three American sailors last role in the region as a prerequi-
on the status of any direct con- week at a Florida military base. site for maintaining the Islamic
sultations with Saudi Arabia. The Saudi outreach also Republic’s clout beyond Iran.
Support has eroded for Saudi comes at a pivotal time for —Dion Nissenbaum in Beirut
Arabia in key world capitals, es- Crown Prince Mohammed bin contributed to this article.
Aramco ture losses if the stock falls,
according to a person familiar
with the matter.
IPO, therefore they will con-
tinue to be buyers of Aramco
in the short term,” said John
Hits Value Buyers have been dominated
by large institutional investors,
the person said, but the small
Gebeily, head of asset manage-
ment in Riyadh for Audi Capi-
tal, the investment arm of a
Target pool on offer by individual in-
vestors helps to explain the
relative lack of trading volume.
Lebanese bank.
Thursday saw significantly
more trading than the first day.
Some Saudi and Middle Investors traded 417 million
Continued from Page One Eastern equity funds received shares at a value of $4.2 billion
domestic exchange, according less than the number of shares on the second day of trading,
to senior Saudi advisers famil-
iar with the IPO planning.
Some of the families were
approached by Aramco execu-
they bid for in the IPO, accord-
ing to Saudi analysts. Active eq-
uity managers now have to buy
on the public market to weight
versus 31.6 million shares at
$300 million in value.
The value of the company
has been a sticking point for
tives who told them it was
their patriotic duty to invest
in the kingdom’s national oil
company. Others were ap-
their portfolios to match
Aramco’s roughly 10% weight-
ing on the Saudi exchange, they
said. The alternative for portfo-
global investors for the four
years since the prince an-
nounced an intention to list the
firm and was one of the main
proached by advisers from the
royal court.
The country’s sovereign-
lio managers would be to re-
main underweight and risk af-
reasons the share sale stalled.
Gulf investors are typically
less concerned about security
wealth fund has poured bil-
and governance issues at
lions of dollars into the mar- Aramco than their U.S., Asian
ket to help support prices
The IPO drew $106 and European peers, and par-
during times of political tur- billion in orders ticipated in the IPO in higher
moil, The Wall Street Journal
has reported.
Even at $1.7 trillion, interna-
tional investors didn’t buy into
from institutional
investors in total.
numbers.
Dubai-based investment
bank Arqaam Capital initiated
coverage on Aramco on
the listing in great numbers,
with many saying the price
was too high compared with
peers such as Exxon Mobil
fecting their performance
compared with peers.
Wednesday, setting a target
price of 39.2 riyals a share,
implying a valuation of $2.1
trillion.
Corp. and Chevron Corp. The
Saudi government’s control
over the energy producer at
In total, the IPO drew $106
billion in orders from institu-
tional investors.
It said Aramco’s commit-
ment to pay a dividend of $75
billion and its low production
the expense of minority share-
holders partly drove that view,
U.S. and European institutional
investors said. That risk
Aramco and its underwrit-
ers allocated Saudi companies,
most of which are owned by
wealthy individuals and the
costs justified a premium valu-
ation.
How the stock trades over
the coming months will help
showed itself in the govern- government, the highest pro- determine whether Aramco is-
ment’s heavy-handed push for portion of shares in the listing, sues more shares domestically
local institutional investors to making up 37.5% on shares sold or lists the oil company on an
bid up Aramco’s shares toward to institutional buyers. Asset international exchange—a goal
a valuation that investors out- managers were handed 26.3% the Saudi government previ-
side the region had rejected. of the two billion shares avail- ously set. An overseas listing
Spokespeople for Aramco, able to professional buyers. could attract more interna-
the Saudi government and the “What you have now is that tional investors.
Tadawul didn’t respond to re- institutional investors have —Ben Dummett
quests for comment. been underallocated in the contributed to this article.
“It is all about reaching this
magic number,” said a senior
Saudi adviser familiar with the
process. “I would expect the
frenzy and this kind of activi-
ties to phase out in a few
weeks, when the whole IPO
success PR campaign dies.”
The shares increased 10% on
their market debut Wednesday,
hitting an upward limit set by
the exchange. The increase in
AMR NABIL/ASSOCIATED PRESS
value is partly a function of the
outsize impact that the com-
pany’s tiny 1.5% share float has
on its valuation.
In the first two days of trad-
ing, individual investors domi-
nated the selling group, decid-
ing to pocket an assured profit
rather than risk potential fu- Aramco’s share price jumped nearly 10% on Thursday.
 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.

THE WALL STREET JOURNAL. * * * * * Friday, December 13, 2019 | A9

WORLD NEWS WORLD WATCH

ECB Keeps Rates

Steady as Lagarde
Makes Her Debut
BY TOM FAIRLESS
FRANKFURT—The European
Central Bank joined the Federal
Reserve in pausing a global
wave of monetary easing, re-
acting to early signs that the
world economy is stabilizing as
international tensions and un-
certainties begin to fade.
Around the world, central
banks have started signaling a
terest rates steady on Wednes-
day after lowering rates at its
three previous meetings to
guard the U.S. economy against
the effects of trade tensions.
Fed officials indicated they are
comfortable with leaving mon-
etary policy on hold through
next year while keeping an eye
on those risks.
Ms. Lagarde, who took over
as ECB president from Mario

TOUFIK DOUDOU/ASSOCIATED PRESS

possible economic turning
point after moving aggres-
sively this year to support
global growth that is headed
for its weakest year since the
financial crisis.
The shift comes as the
world’s two biggest economies,
the U.S. and China, were on the
verge of a limited trade deal
that could help reduce uncer-
tainty weighing on global busi-
nesses. Authorities in China
have taken steps to support the
economy, while a recession in
Germany’s large manufacturing
sector appears to be bottoming
out.
The ECB left its key interest
rate on hold at minus 0.5% on
Thursday, after unveiling a
sweeping package of interest-
rate cuts and bond purchases
in September that split the
bank’s rate-setting committee.
Christine Lagarde, the ECB’s
new president, told reporters at
her inaugural news conference
that she detected “some initial
signs of stabilization” in euro-
zone growth, and “somewhat
less pronounced” risks to the
economy. The export-oriented
region has been particularly af-
fected by tensions surrounding
international trade and a slow-
down in China.
Analysts said the ECB
looked unlikely to cut interest
rates again anytime soon. “We
foresee the ECB to stay on
hold throughout 2020,” said
Frederik Ducrozet, an econo-
mist with Pictet Wealth Man-
agement in Geneva.
The Federal Reserve held in-
Draghi on Nov. 1, has indicated
she wants to seek greater con-
sensus among the region’s
central bankers.
A lawyer and former politi-
cian with no previous central-
banking experience, Ms.
Lagarde is something of an
unknown quantity for analysts,
who parsed her words and de-
livery style for clues as to how
she might steer policy during
her eight-year term.
“Markets have to get used
to her, and she needs to get
used to the way markets inter-
pret and react to central-bank
statements,” said Florian
Hense, an economist with Be-
renberg Bank in London.
Ms. Lagarde stressed that
investors shouldn’t over-inter-
pret her early appearances.
She sought to escape analysts’
characterization of central
bankers as either leaning to-
ward lower or higher interest
rates. “I’m neither dove nor
hawk and my ambition is to be
this owl that is often associ-
ated with a little bit of wis-
dom,” she said.
She indicated that she
backed Mr. Draghi’s recent de-
cisions to use controversial
policy tools such as negative
interest rates and large-scale
bond purchases. But she also
said she would assess the use-
fulness of those tools as part
of a wide ranging review of
the ECB’s strategy, which will
begin in January and conclude
by the end of 2020.
—Paul Hannon in London
contributed to this article.
Algerian protesters jammed the streets Thursday in the capital Algiers in opposition to the presidential elections. The pro-democracy
demonstrators say the military-led interim government is positioning favored politicians to continue the armed forces’ grip on power.
EU
Leaders Pledge to Cut Demonstrations
Emissions to Net Zero Disrupt Election
European Union leaders agreed
to cut the bloc’s greenhouse- gas
emissions to net zero by 2050,
coupling efforts to fight climate
change with a massive economic
transition poised to test EU unity.
The agreement, already once
postponed, came early Friday af-
ter contentious negotiations. In a
sign of the challenges ahead, Po-
land refused to implement the
decision before June, seeking fi-
nancial assurances to safeguard
its economy, which relies on coal
for 80% of its energy needs.
European leaders clinched the
deal a day after the bloc’s execu-
tive, the European Commission,
unveiled its “green deal” proposal
to achieve climate neutrality by
2050. The comprehensive pack-
age to slash the bloc’s emissions
includes €100 billion ($111 billion)
in funding to help coal-reliant
countries shift to cleaner energy
and new taxes to punish polluting
industries, among other mea-
sures.
—Emre Pecker
ALGERIA
Protests disrupted the first
election in Algeria since its long-
time ruler was forced to resign
this year, with demonstrators re-
jecting the vote as a guise for
continuing the country’s military-
led regime with a new public face.
The election for a new presi-
dent to succeed ailing 82-year-old
autocrat Abdelaziz Bouteflika has
fueled further demonstrations
among those who fear Algeria’s
interim government is positioning
favored politicians to extend the
armed forces’ grip on power.
Calls for a boycott of the elec-
tion are extending the nation’s
yearlong political crisis and ampli-
fying the turmoil across the Mid-
dle East and North Africa. Police
in the port city of Bejaia fired tear
gas at protesters who stormed a
polling station, hurled ballot boxes
to the ground and sent a cloud of
ballots flying. The government
has called off presidential elec-
tions twice since Mr. Bouteflika
resigned.
—Jared Malsin
RUSSIA
Several Are Hurt in
Aircraft Carrier Fire
A fire broke out aboard Russia’s
only aircraft carrier, injuring nearly a
dozen people and threatening to
put the vessel out of commission,
the latest in a string of disasters
that have raised questions about
the state of the navy and President
Vladimir Putin’s plans to modernize
the armed forces.
The massive blaze erupted early
Thursday aboard the Admiral Kuz-
netsov as it was undergoing major
repairs and quickly spread to much
of the 1,001-foot vessel. The fire
was the Kuznetsov’s third accident
aboard the ship in just more than
three years. About 400 workers,
and an unknown number of offi-
cers, were on the ship when the
fire started, authorities said.
The Admiral Kuznetsov has
been central to Russia’s efforts to
project power beyond its borders.
The ship was used in a dis-
play of military might off the
coast of Syria in late 2016, and
more than 100 sorties were flown
from the ship.
—Thomas Grove
ARMENIA
U.S. Senate Passes
Genocide Resolution
The Senate approved a resolu-
tion recognizing the Armenian
genocide, delivering a rebuke to
Turkey despite White House re-
sistance to the measure.
The resolution passed Thurs-
day after Sen. Robert Menendez
(D., N.J.) brought it to the Senate
floor and no other lawmaker ob-
jected. Republican senators previ-
ously had blocked the measure
three times at the behest of the
White House, which has faced a
lobbying effort by Turkey. Turkey
has for years pressured the U.S.
not to use the word “genocide” to
describe the slaughter of about
1.5 million people in the early
20th century.
The resolution passed the
House with bipartisan support in
October. At the time, the Turkish
foreign ministry condemned the
measure as lacking historical or
legal basis. Many historians rec-
ognize the Ottoman Empire’s
treatment of Armenians from
1915 to 1923 as a genocide.
—Andrew Restuccia

DISASTERS DON’ T
PL AN AHEAD

YO U C AN
DON’T WAIT. COMMUNICATE.
Talk to your loved ones about how you are
going to be ready in an emergency.

VISIT READY.GOV/PLAN.
 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.

A10 | Friday, December 13, 2019 THE WALL STREET JOURNAL.

WORLD NEWS

Drainage Blamed for Dam Disaster Germany

To Probe
Experts hired by Vale meant they burst out with
say water buildup
inside structure led to
great force. The slope of the
dam collapsed in less than 10
seconds. About three-quarters
Inspector
collapse that killed 270
of the dam’s contents rushed
out over the next five minutes,
obliterating the cafeteria as
Vale Used
BY SAMANTHA PEARSON well as nearby homes and a BY PATRICIA KOWSMANN
AND LUCIANA MAGALHAES small guesthouse.
This occurred via a process Prosecutors in Germany have
SÃO PAULO—Vale SA said called liquefaction, a trick of opened a criminal probe into
experts hired by the mining physics that makes solids be- the role of German safety in-
company concluded that have like a liquid, the report spector TÜV SÜD over the Jan-
drainage problems were said. Liquefaction was also uary collapse of a mine-waste
largely to blame for the col- responsible for the collapse dam in Brazil that killed 270

VICTOR MORIYAMA/BLOOMBERG NEWS

lapse of its dam in January in 2015 of another mine- people.
that killed 270 people in Bra- waste dam jointly owned by A spokeswoman for the Mu-
zil. Vale in the nearby town of nich prosecutor’s office de-
The original design of the Mariana. scribed the investigation as pre-
dam and the way it was built The experts ruled out seis- liminary, but declined to
up over decades allowed dan- mic activity or detonations in comment further on its scope.
gerous amounts of water to neighboring mines as the trig- In Germany, a preliminary in-
accumulate inside the struc- ger, saying that the dam was vestigation is a prerequisite for
ture, meaning it was only a under so much internal stress criminal charges being filed.
matter of time before it gave that it likely underwent a Such probes can also end with-
way, according to the report The failure of the mine-waste dam is the subject of criminal investigations in Brazil and Germany. gradual deformation and col- out charges if prosecutors de-
released by Vale on Thursday. lapsed. cide there isn’t sufficient evi-
The mine-waste dam’s fail- Brazilian miner that Vale ac- dried-out mining waste is Adding to the dam’s prob- In September, Brazilian fed- dence to bring a case to court.
ure, one of the world’s deadli- quired in 2001, its design pre- gradually piled up over time to lems was the stiff and heavy eral police accused 13 mostly It is the first investigation of
est in decades, is the subject vented correct drainage at its form the wall of the structure. nature of its contents, the so- lower-level employees of Vale TÜV SÜD in Germany following
of criminal investigations in base, according to the panel of Vale built the last layer in called tailings. The tailings and TÜV SÜD of covering up the deadly dam collapse at a
both Brazil and Germany, four international engineering 2013, taking the dam to a contained a particularly high structural dangers at the dam. mine owned by Brazilian giant
home to TÜV SÜD, the dam’s experts hired by Vale’s law- height of 280 feet, and level of iron ore, making the A spokeswoman for Vale Vale SA. TÜV SÜD, a privately
Munich-based safety inspector. yers. The dam was also ini- stopped depositing mining structure more brittle, accord- said the company wasn’t held company, carries out certi-
The report was commis- tially constructed with a par- waste there in 2016. ing to the experts from univer- aware of any imminent or crit- fication and safety auditing
sioned as a technical study, to ticularly steep slope, leaving The experts said the mecha- sities in Canada, Australia and ical risks at the structure be- work across a range of indus-
spell out specific engineering the structure more unstable as nisms introduced at later the U.S. fore it collapsed. She said the tries, including telecommunica-
shortfalls and causes of the subsequent layers of the dam stages of its construction were When the dam finally rup- company was also carrying tions, railways and health care.
collapse. It wasn’t designed to were added over the next 37 insufficient to solve the struc- tured at 12:28 p.m. on Jan. out a detailed technical inves- TÜV SÜD’s Brazil unit au-
affix blame or responsibility, years, they said. ture’s drainage problem, which 25—as many workers were tigation into all its upstream dited and certified the dam as
the report’s drafters said. The dam was built via the was exacerbated by intense having lunch in the mine’s caf- dams, and would share the stable twice last year. The Wall
When the dam was built in so-called upstream method, rainfall during Brazil’s wet eteria lower down the valley— findings of Thursday’s report Street Journal subsequently re-
1976 by Ferteco Mineração, a the cheapest design, whereby season at the end of last year. the weight of the tailings with the authorities. ported that employees of TÜV
SÜD, as well as Vale, knew for
months of dangerous conditions

Wreckage Found of Antarctica-Bound Chilean Plane at the dam. TÜV SÜD employ-
ees expressed worry about los-
ing contracts with Vale, a major
client, the Journal reported.
BY JEFFREY T. LEWIS bris about halfway across the from this accident,” Gen. Ar- had caused the crash, though maintenance mission for Chil- Until now, only Brazilian au-
stormy waters of the Drake turo Merino, head of Chile’s local media reported that one ean installations. thorities were known to be
Wreckage and human re- Passage that separates South air force, told reporters in of the passengers mentioned With the assistance of sat- probing TÜV SÜD’s role. In Sep-
mains from a Chilean military America from Antarctica. Punta Arenas, the remote electrical problems in a voice ellites, aircraft and ships from tember, Brazilian police accused
aircraft that disappeared on a The components of a wing town from where the plane message sent to a relative be- Chile, Argentina, Uruguay, Bra- six employees of the firm of
flight to Antarctica with 38 and personal belongings, in- had taken off Monday. “This fore taking off from Punta zil, the U.S. and Britain had covering up structural dangers
people aboard have been dis- cluding a backpack, were tremendous pain is felt not Arenas. “That is part of the in- been scouring the sea in at the dam during safety audits.
covered in the turbulent wa- found bobbing in the water. only by the families, it’s also a vestigation,” Gen. Merino said. search of the plane. A spokesman for TÜV SÜD
ters off South America’s The debris was found in an pain that is felt by the whole Chile’s air force lost contact “We want to thank the said it “cannot comment on the
southern tip, Chile’s govern- area where the depth of the country.” with the plane Monday eve- friendly countries that have ongoing investigations by the
ment said Thursday. ocean reaches more than 2.5 At the Cerrillos air force ning about an hour and a half helped us in the search be- prosecutors.” He said that the
Planes and ships from six miles. base near Santiago, Chile’s after it left Punta Arenas. The cause their collaboration has company is “still very much in-
countries have been conduct- “The conditions of the de- president, Sebastián Piñera, plane was en route to an air- been very important, very terested in clarifying the facts
ing a search for two days for bris found from the plane met with the grieving relatives strip on King George Island off generous and very timely,” of the dam breach” and that it
the plane. A Brazilian polar re- make it practically impossible of those aboard. the coast of the Antarctic Pen- Chilean Defense Minister Al- is cooperating with authorities
search vessel first spotted de- that there are any survivors It remained unclear what insula for a resupply and berto Espina said. in Brazil and Germany.

FROM PAGE ONE

World’s
Bank Notes
Vanish
ANDREAS ARNOLD/DPA/GETTY IMAGES

Continued from Page One

where near that amount” on
hand, Mr. Lowe said.
Following the money trail
can often mean encountering a
motley cast of characters that
wouldn’t look out of place in a
detective novel. Dollar bills are
often vital grease for criminal
gangs and tax cheats. A German federal bank official inspects euros.
Cash is also popular with
collectors who worry about a notes to replace those that had The biggest use of cash is as
future collapse of the financial been damaged by fires. a store of wealth “in safes, un-
system. It didn’t work. der beds and at the back of
If central banks don’t know “Our estimates are only reli- cupboards, both here in Austra-
how much cash is out there, able if our assumptions are rea- lia and elsewhere around the
they could print too much cur- sonable, which we believe is world,” Mr. Lowe, the RBA gov-
rency and risk inflation. probably not the case,” la- ernor, said.
Construction workers re- mented analysts at Australia’s Officials at the Swiss Na-
cently dug up an estimated central bank. tional Bank ran with another
$140,000 buried in packages at They found wealthier peo- theory: hoarded bank notes
a site on Australia’s Gold Coast. ple are less likely to suffer a should wear out less because
In September, a court in Ger- fire because they live in cities they aren’t being used for ev-
many ruled on a case brought near emergency services and eryday transactions.
by a man who stuffed more have working fire alarms. That Demand for high-denomina-
than 500,000 euros in a faulty skewed results toward rural tion bank notes can rise when
boiler only to see it incinerated farmhouses. interest rates are low, or when
when a friend made a fix on a The European Central Bank people feel distrustful of the
cold day while he was on vaca- tried asking the public for help. banking system.

Achieve Your tion. The man sued his friend

for the value of the lost bank
notes plus interest. He lost.
A German man
SNB officials found that
hoarding of Swiss francs
jumped around the year 2000,

Literary Ambitions
“People hide their money ev- likely motivated by fear of the
erywhere,” said Sven Bertel- kept more than Y2K bug infecting computer
mann, head of the Bundes-
bank’s National Analysis Centre
half a million euros systems, the September 11 ter-
rorist attacks and introduction
in Mainz, Germany. Sometimes in his broken boiler. of the euro.
bank notes are buried in the Then the financial crisis en-
garden, where they start de- couraged people to stash even
composing, or hidden in attics. more.
Every month, WSJ members are “It happens again and again “Everyone says that they are Around a third of New Zea-
exclusively entitled to a complimentary that people keep money in an not hoarding cash but the land’s new bank notes headed
envelope and then they shred it money is clearly somewhere,” overseas in 2017. That hap-
e-book with WSJ+. by mistake,” Mr. Bertelmann said Henk Esselink, head of the pened around the time that
said. “We pick up the bank issue and circulation section in tourism overtook dairy as the
notes with tweezers and then the ECB’s currency manage- country’s main export money-
start to put them together, like ment division. spinner, leading officials to
a jigsaw puzzle.” Australia’s central bank says speculate on the role played by
WSJPLUS.COM/FREEBOOK The Bundesbank thinks more
than 150 billion euros are being
its best guess is that only
around a quarter of the bank
currency exchanges.
The bank identified the
hoarded in Germany. notes in circulation are used for whereabouts of around 25% of
The Reserve Bank of Austra- everyday transactions. Up to New Zealand’s cash.
lia’s Note Issue Department de- 8% of cash is used in the “Our sense is that we’re in
cided to take an unusual ap- shadow economy—tax avoid- the same boat as a lot of other
proach: could fire-damaged ance or illegal payments—while central banks out there,” said
bank notes help to determine as much as 10% could have Christian Hawkesby, assistant
how much money is being been lost. That is $7.6 billion governor at the RBNZ. “We
hoarded? Analysts devised an Australian dollars ($5.2 billion) can’t fully explain why holdings
© 2019 Dow Jones & Co., Inc. All rights reserved. 3DJ7404
equation based on the value of missing at the beach or in of cash are rising and where
claims submitted for new bank couch cushions. they are going.”
 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.
THE WALL STREET JOURNAL.
Internet
Providers
Sway Tests
Continued from Page One
ing on their broadband busi-
nesses to drive growth.
The FCC informs companies
which customers are part of the
speed tests, allowing some to
prioritize giving those house-
holds better service, engineers
who worked at some of the
companies said. The FCC relies
on companies to provide infor-
mation about the speed plans
for the customers being tested.
Major providers have per-
suaded the FCC to remove un-
favorable data, including indi-
vidual houses with poor scores,
blaming faulty equipment.
They have successfully argued
to exclude test days when
heavy traffic slowed scores,
such as during NFL games or
when Apple Inc. pushed a new
software update. Reasons for
the deletions aren’t always in-
cluded in the FCC reports.
SamKnows clients
Many internet providers
gain additional information
about the users being tested by
paying SamKnows, the U.K.-
based company that adminis-
ters and provides equipment
for the tests, for real-time ac-
cess to testers’ scores year-
round and other analytics.
Representatives of major
broadband providers denied
tampering with the FCC study,
pointing to a code of conduct
they sign that forbids them
from influencing the results un-
less it is “consistent with nor-
mal business practices.” They
said any network upgrades im-
proved service for swaths of
their subscribers, not just
households in the FCC’s tests.
AT&T said that in its case,
the company asked the FCC to
remove DSL data from the re-
port because it no longer mar-
kets that older technology,
which relies on copper phone
lines, used by a small percent-
age of its customer base. The
company said the commission’s
own policies should have ex-
cluded the “obsolete” internet
plans. AT&T also said that it
did validate the DSL accounts
for the FCC.
An FCC spokesman said the
program has a transparent pro-
cess and that the agency will
continue to enable it “to im-
prove, evolve, and provide
meaningful results as we move
forward.”
SamKnows said it doesn’t
believe anything the providers
did could have made a differ-
ence to the results, given the
checks and controls it has in
place. The company’s chief ex-
ecutive, Alex Salter, said hav-
ing internet providers as cli-
ents doesn’t interfere with its
ability to do accurate testing
for regulators. The program
has spurred companies to make
major nationwide investments
in network upgrades, he said.
The tests cover thousands of
users who sign up directly with
SamKnows, or are invited to
sign up by the FCC or their in-
ternet providers. They install
measuring devices in their
homes, which measure speeds
throughout the day.
For the official report, the
FCC uses data from a specific
time period, usually a month or
two in the fall, to produce a re-
port that has been published
eight times in nine years, most
recently last December. The
FCC and SamKnows inform the
internet providers the dates of
the testing period and send
them lists of individual testers’
names so they can confirm
which speed packages the cus-
tomers have signed up for. The
agency compares that informa-
tion with the actual results
from the tests administered by
SamKnows.
That makes it possible for
companies to keep tabs on
many testers from year to year,
engineers said. Providers can
use that information, as well as
real-time data from the dash-
board SamKnows sells them,
which anonymizes the users
but shows their states and re-
gions, to make targeted up-
grades that improve service for
those households, engineers
said.
Internet experts and former
FCC officials said the setup
gives the internet companies
enormous leverage. “How can
you go to the party who con-
trols the information and say,
‘please give me information
that may implicate you?’ ” said
Tom Wheeler, a former FCC
chairman who stepped down in
January 2017.
* * * *
Jim Warner, a retired net-
work engineer who has helped
advise the agency on the test,
told the FCC in 2015 that the
rules for providers were too
lax. “It’s not much of a code of
conduct,” Mr. Warner said.
The reports largely paint a
rosy picture for internet pro-
viders. Last year, a key finding
was that “for most of the ma-
jor broadband providers that
were tested, measured down-
load speeds were 100% or bet-
ter of advertised speeds during
the peak hours.”
Internet providers such as
Altice USA’s Optimum and Ver-
izon Communications Inc.’s
Fios have used the FCC’s re-
sults over the years to bolster
their marketing claims. Charter
Communications Inc., which in
2016 swallowed Time Warner
Cable to become the No. 2 U.S.
internet provider with its Spec-
trum brand, cited FCC speed-
test results to defend itself
when the New York attorney
general sued it in 2017 for
overpromising and underdeliv-
ering internet speeds.
Comcast Corp. says about
its Xfinity service on its web-
site that “recent testing per-
formed by the FCC confirms
that Comcast’s broadband In-
ternet access service is one of
the fastest, most reliable
broadband services in the
United States.”
Marcia Pearson, a Cox Com-
munications Inc. customer in
Goleta, Calif., pays for 30
Mbps—or megabits per sec-
ond—service but registered
speeds of only 3.6 Mbps when
she used Cox’s own tool to test
her speed on a recent day.
“It is annoying that one has
to pay for something that is
falsely advertised,” she said. In
interviews, several other con-
sumers said they have had sim-
ilar experiences.
Cox said that after it was
contacted by The Wall Street
Journal about Ms. Pearson, it
discovered outdated equipment
in the network connecting to
Internet providers
wield tremendous
influence over the
FCC study.
her home and fixed it. Ms.
Pearson said her speeds have
improved.
Last year, Cox, one of the
biggest U.S. broadband provid-
ers, wasn’t pleased with a weak
score on a key FCC metric,
which said Cox’s speed “consis-
tency”—what most subscribers
get most of the time—was 37%
of what it advertised. Cox offi-
cials denied responsibility, ar-
guing to the FCC that a con-
gested link to an internet
middleman had lowered scores
for some of its Arizona cus-
tomers.
In the December 2018 re-
port, Cox’s results aren’t in-
cluded in two main charts that
show how companies compare
in consistency. The FCC put
Cox’s scores, including the 37%
figure, in a footnote, where it
said that, factoring out the
contested results, the consis-
tency score would have been
85%.
Cox and the FCC said most
of the speed tests occurred
over the congested internet
link, the upgrade of which had
been delayed. In normal use
Omitted Data
Providers have persuaded the FCC to exclude the results of more
and more internet speed tests. The 2018 report excluded more
than a quarter of test-taking users, mostly because providers said
the users weren’t representative of their popular speed plans.
Excluded users,
by select providers
Comcast Charter AT&T
300
Years represent when the
200
reports were released
100
0 “I know that goes on,” he
2012 ’13 ’14 ’1 ’16 ’17 ’18
Excluded users in 2018, by reason
27% 73%
Providers say Outdated
users aren't measuring
representative equipment
of plan
Less than 5
days of data
Not enough users
in speed plan
Outdated
modem
Provider unable
to verify user
Other reasons
Source: FCC
Yan Wu/THE WALL STREET JOURNAL
FROM PAGE ONE
that link carried less than 3%
of Cox’s web traffic, they said.
Some FCC officials were un-
comfortable with the omission,
people familiar with the epi-
sode said. Network experts say
broadband providers share re-
sponsibility with internet mid-
dlemen to keep their connec-
tions upgraded.
AT&T was repeatedly at log-
gerheads with the FCC over its
results and worked closely with
the agency to have favorable
items included in the report, a
former AT&T employee famil-
iar with the testing said.
FCC officials decided reluc-
tantly not to publish AT&T’s
DSL data in last year’s report,
according to Walter Johnston,
a former FCC official who over-
saw the program until he re-
tired last year.
“Personally, I was not happy
about that,” he said. Overall,
Mr. Johnston defended the FCC
test, saying the agency never
meant it to be a “consumer
guarantee.”
AT&T this year told the
commission it will no longer
cooperate with the FCC’s Sam-
Knows speed test. Instead, it
said it plans to use its own
measurement tool, which it be-
lieves to be more accurate, to
report performance to the gov-
ernment.
Providers have requested
the FCC delete poor results
from individual users, such as
when major weather events
like hurricanes hurt internet
service, or when users have
outdated modems.
Some FCC staff felt the pro-
viders should be responsible
for ensuring their customers
have updated equipment, a for-
mer FCC official said. The FCC
routinely allows those dele-
tions as long as companies
make good-faith efforts to in-
form users of old modems.
In 2013 and 2014, millions of
Comcast, Verizon and Time
Warner Cable customers expe-
rienced internet slowdowns—
most notably while viewing
Netflix, but also on other sites
and applications. The FCC
omitted speed-test results re-
flecting that in its report.
The agency said the network
congestion, which stemmed
from a standoff between Net-
flix, the providers and internet
middleman Cogent Communi-
cations Inc. over who should
pay for upgrading their shared
connections, was outside the
scope of the study. Comcast,
Verizon and Time Warner Ca-
ble got stellar grades in the
2014 report.
Henning Schulzrinne, the
chief technology officer at the
FCC for several years, said he
was against such exemptions
because they obscured custom-
ers’ actual experiences.
New York-based Cablevision
Systems Corp., which was ac-
quired by Altice in 2016, got
especially bad results in 2011.
Top executives pushed a net-
work-wide effort to improve
service, and during the up-
grades, FCC speed-testing us-
ers were given white-glove
treatment, some former Cable-
vision engineers said.
Jack Burton, a former Cable-
vision engineer who is now a
consultant, said “there was an
effort to make sure known [us-
ers] had up-to-date equipment”
like modems and routers. Ca-
blevision also marked as “high
priority” the neighborhoods
that contained speed-testing
users, ensuring that those
neighborhoods got upgraded
Average peak-period
sustained download speeds as
a share of advertised speeds
Internet providers routinely score high
numbers on the FCC's Measuring
Broadband America report.
Verizon DSL Verizon Fios
Comcast Cox
Charter Others
AT&T
Cablevision rose quickly
in the FCC rankings in the
year after putting a priority on
speed-testing users, according
to former engineers.
’11 ’12 ’13 ’14
Friday, December 13, 2019 | A11
The Sandwich Bandwidth Test
Six users who tested their internet speed for The
Wall Street Journal showed speeds much lower
than those promised by their speed plans. Each user
tried different speed tests on various platforms.
Testing products
Speedtest.net Fast.com Provider test
“The analogy I gave AT&T on the phone was,
‘Look, I’m paying for a 12-inch sub and you’re
giving me 3 inches of it. You need to adjust the
price or give me the rest of the sandwich.’”
Ryan Greenwald AT&T
San Diego, Calif. 40 60
100 Mbps
20 80
Got Paid
100
0
17.9 Mbps - 42.3 Mbps
“Never does the bill get prorated for that,
even if you’re only giving me 50-60% of what
I pay for.”
AT&T
John Bishop 400 600 1000 Mbps
Raleigh, N.C.
200 800 Got Paid
0 1000
456.6 Mbps - 570 Mbps
Comcast
100 150
250 Mbps
50 200
Got Paid
0 250
Mohan 74.4 Mbps - 130 Mbps
Chandhuluru
Iselin, N.J.
AT&T
400 600 1000 Mbps
200 800
Got Paid
0 1000
Bruce Clark
1.5 Mbps - 1.1 Gbps
Charlotte, N.C.
Charter
80 120 200 Mbps
40 160 Got Paid
0 200
David Resnick
81 Mbps - 91.5 Mbps
Red Oak, Texas
Cox
12 18
30 Mbps
6 24 Got Paid
0 30
Marcia Pearson
3.6 Mbps - 5.9 Mbps
Goleta, Calif.
Note: Ryan Greenwald tested using Wi-Fi; all others used a hardwired connection.
Yan Wu/THE WALL STREET JOURNAL
ahead of others, said other for- fore the test that “you have is-
mer Cablevision engineers sues somewhere,” said Jason
close to the effort. Weil, a former engineer at
Cablevision’s SamKnows Time Warner Cable and Char-
scores dramatically improved ter who worked on the FCC
within a span of months, ac- program at both. “If you know
cording to an FCC blog post. six months ahead of time, that
The following year Cablevision is much, much easier.” Mr. Weil
topped the rankings. said the close collaboration be-
Altice declined to comment tween SamKnows and the pro-
on activity before its acquisi- viders worked to the benefit of
tion of the company. all users.
A former senior Cablevision
executive denied the company
gave households involved in Timely upgrades
FCC tests special treatment. Sometimes providers boost
FCC officials said they are speeds for households during
unaware of any such effort to the actual FCC speed-testing
influence the test. They added period. Comcast a few years
that they publish the raw data ago upgraded speeds in some
from tests online and rely on regions without notifying the
rival carriers to keep one an- FCC, making test results look
other honest. stellar, people close to the FCC
One way providers keep tabs program said. The FCC discov-
on households is by paying ered the changes after spotting
SamKnows for access to its anomalous data and adjusted
real-time dashboard. Sam- the numbers.
Knows said its contracts with This September, amid an
providers range from about FCC test, Comcast rolled out
$13,000 to more than $650,000 speed upgrades for many cus-
a year. tomers in several states.
Through the dashboard, “We have done annual speed
companies could find out be- increases during various
months of the year for the past
18 years,” a Comcast spokes-
woman said. “In addition, the
200 %
FCC’s measurement system is
designed to ensure that any
changes in speed or tier during
the testing window are ac-
180 counted for so they can be
measured accurately.”
Internet providers can spot
government speed-test data on
their networks and essentially
160
open more bandwidth for a
customer for the duration of
the test, said James Cannon, a
longtime cable and telecom en-
140 gineering executive who left
Charter in February and now
consults for various providers.
said. “If they have a scheduled
120
test with a government agency,
they will be very careful about
how that traffic is routed on
the network.”
100 Michael Dozier, a former
AT&T engineer who left this
year; Maurice Dean, a telecom
and media consultant with 22
years’ experience working on
80
streaming, cable and telecom
projects, including at Alphabet
Inc.’s Google; and Mr. Lubow,
the cable and telecom consul-
AT&T persuaded the FCC tant, agreed there was special
60
to remove its DSL results treatment of speed tests.
from the 2018 report, leaving
“It is problematic,” Mr. Dean
only its higher-performing
service in the results.
said. “This attempt to ‘en-
hance’ performance for these
measurements is a well-known
’1 ’16 ’17 ’18 practice in the industry” and
makes the FCC results “almost
meaningless for describing ac-
tual user experience.”
The Journal reached out to
the top 10 U.S. broadband pro-
viders to ask about special
treatment of speed-test traffic.
AT&T, CenturyLink Inc., Char-
ter, Comcast, Cox, Mediacom
Communications Corp., Verizon
and Windstream Holdings Inc.
denied that they prioritize
speed tests, and said they up-
grade their networks continu-
ally and don’t give special
treatment to FCC speed tes-
ters. Altice USA and Frontier
Communications Corp. said
they follow the FCC’s code of
conduct.
Last year, satellite internet
provider Viasat Inc. left the
FCC’s program after growing
concerned about rivals’ behav-
ior. Its satellite competitor
Hughes Network Systems LLC
had posted results in 2017
showing it was providing
greater than 160% of its adver-
tised download speeds on aver-
age, far exceeding Viasat’s.
Also worrisome, the New York
attorney general alleged that
Charter-Time Warner Cable
juiced its FCC results by using
certain tactics to paper over
bad scores. Charter settled
with New York state last year
for $174.2 million while admit-
ting no wrongdoing.
It “really made us ques-
tion…whether [others] are in-
tentionally trying to influence
the results,” said Christopher
Murphy, Viasat’s associate gen-
eral counsel. The fact that
some internet providers were
also clients of SamKnows
struck Viasat as a conflict of
interest.
FCC officials said their in-
vestigation of Viasat’s com-
plaint found no evidence of
tampering by Hughes. A
Hughes spokeswoman said the
company has also left the pro-
gram and always abided by the
FCC’s rules.
A big reason for the gap be-
tween the speeds internet com-
panies promise and those they
deliver is the structure of most
broadband networks. Service
providers pipe bandwidth into
neighborhoods, where it is
shared by those households.
The amount of bandwidth pro-
viders deliver is a fraction—of-
ten as low as 1%—of the total
bandwidth all households in
the neighborhood have collec-
tively signed up for in their
plans, according to CTC Tech-
nology & Energy, a telecommu-
nications consulting firm.
That helps explain why at
times of peak usage, when lots
of people are playing “Fort-
nite” or streaming movies, for
example, there isn’t enough
bandwidth to go around, and
people experience speeds
slower than what they paid for.
Company executives said
they provision bandwidth
based on how much a neigh-
borhood actually uses in order
to be fiscally responsible.
When providers roll out
faster speed plans, without up-
grading the total bandwidth
available to neighborhood net-
works, the results can be even
more frustrating for consum-
ers. For example, Charter-Time
Warner Cable oversold its net-
work to the point where 200
Mbps and 300 Mbps house-
holds “would achieve speeds
that were only a half to a third
of their promised speeds,” the
New York attorney general al-
leged in its 2017 suit. Yet Time
Warner Cable’s FCC speed-test
results in the two years prior
averaged 100% or more of
promised speeds.
Internet experts said the
FCC’s entire testing approach
needs to be rethought to be
more useful for consumers.
The current test measures how
much capacity internet provid-
ers supply to a household, in a
vacuum, but doesn’t monitor
the internet performance that
users actually experience while
streaming, gaming or surfing
the Web, which can be affected
by overtaxed neighborhood
networks, Wi-Fi interference or
traffic jams deep in the guts of
the internet.
The Journal conducted its
own test this year to assess
how speed affects internet per-
formance, focusing on how us-
ers actually experience a vari-
ety of streaming services. The
Journal’s testing found that
there were marginal benefits
for paying for faster speeds be-
yond 100 Mbps.
Tim Wu, a longtime broad-
band industry critic and Co-
lumbia University professor,
likened the FCC’s approach to
measuring the speed of a car
after getting rid of traffic. “If
you want to get an idea of
what Americans are experienc-
ing, that’s a totally different
story,” he said.
—Inti Pacheco contributed
to this article.
 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.

A11A | Friday, December 13, 2019 NY * * THE WALL STREET JOURNAL.

GREATER NEW YORK

NYCHA
Accused
Of Rent
Overcharge
BY TYLER BLINT-WELSH

A group of tenants is suing

the New York City Housing
Authority, accusing it of vio-
lating federal law by over-
charging thousands of renters
every year for at least a de-
cade, according to a lawsuit
filed Thursday.
Residents in public housing
aren’t allowed to be charged
rent that exceeds 30% of their
income under the Housing Act
of 1937. The lawsuit says NY-
CHA failed to adjust rents
when households experienced
a loss of income, raised rents
for some tenants due to incor-
rect income calculations and
RICHARD DREW/ASSOCIATED PRESS

wrongly moved to evict resi-

dents for nonpayment of rent.
Edward Josephson, director
of litigation and housing for
the nonprofit Legal Services
NYC, said he has heard about
such issues from public-hous-
ing residents for years, but
typically dealt with them on a
Barnard College student Tessa Majors was killed Wednesday after a group attacked and robbed her in Morningside Park on Manhattan’s Upper West Side, police said. case-by-case basis. An influx
of complaints in recent

Barnard Student ‘Shone Bright’

months led him to pursue the
case on behalf of nine tenants.
“We’re trying to change a
system that is basically callous
and uncaring to the people
Stabbing victim “Everyone is shaken to the lottesville, said she spent New York; that’s where she they’re supposed to protect,
core,” she said. “This hits the hours in its studio recording wanted to be,” he said. “I and we’re trying to reduce the
Tessa Majors, 18, core of how vulnerable we are and producing her most recent know that’s where her heart number of eviction cases and
was remembered as at every level.” album, “Girl Problems.” was.” the number of homeless people
Katie Long, a 20-year-old “An integral part of the Police were investigating in the city,” Mr. Josephson said.
a talented musician Columbia College student, at- MRC community, Tess was whether Ms. Majors’s killing Brooklyn Councilwoman Al-
tended a vigil at the entrance friendly, outgoing, and incredi- was related to a recent string icka Ampry-Samuel, a Demo-
The fatal stabbing of a first- to the park. She said she feels bly supportive of other MRC of robberies in Morningside crat and chair of the Commit-
year Barnard College student safe on campus, but will begin members,” the nonprofit said Park, a roughly-30-acre green tee on Public Housing, called
in a Manhattan park near the taking extra precautions. in a statement. space, officials said. the agency’s alleged actions
elite school has left class- “If I need to go somewhere This past spring, Ms. Ma- Major crimes in the park “negligent.” She said she
mates, faculty and area resi- late at night, I’m going to try jors was an intern at the Au- have doubled this year com- would meet with NYCHA Chair
dents shaken over her loss and and bring someone with me so gusta Free Press, a daily on- pared with last, according to Gregory Russ on Friday.
concerned about security. I’m not alone,” she said. “Gen- line newspaper in central the most recently available When asked for comment,
Tessa Majors, 18 years old, erally they do such a good job Virginia. Editor Chris Graham city data. NYCHA spokeswoman Barbara
of making people feel safe. I said he was impressed with Between Jan. 1 and Sept 30, Brancaccio said the agency
By Katie Honan, guess that’s why it’s so sur- school in Charlottesville, Va., her interest in a local school- Morningside Park had 16 ma- hadn’t been served with the suit.
Ben Chapman prising, in a sense.” in the spring, winning aca- budget controversy. He last jor crimes, including 11 rob- NYCHA, which operates the
and Melanie Grayce Ms. Majors was wrapping demic honors in English. She spoke to her in November, beries, data show. For the country’s largest public-housing
West up her first semester at Bar- also played music with her when she emailed him a link same period in 2018, the park system, recently has come un-
nard, a liberal-arts college for friends in an alternative-rock to her band’s album on Spotify recorded eight major crimes, der fire for failing to properly
died Wednesday evening after women, with final exams be- band, Patient 0. and said she was doing well in including five robberies. maintain buildings, resulting in
a group attacked and robbed ginning Friday. Music Resource Center, an New York City. Brad W. Taylor, president of thousands of residents going
her in Morningside Park, said She graduated from high after-school program in Char- “She was so excited to be in the Friends of Morningside without heat during the winter.
New York Police Department Park, a nonprofit group that
officials. supports the park, said the or-
A Columbia University se- ganization had been notified
curity guard found her shortly of an increase in attempted
‘We’re trying to
before 7 p.m. with several robberies on the western side change a system that
knife wounds after she stag- of the park, near where Ms.
gered out of the park. Majors was discovered.
is basically callous
Morningside Park, Barnard Still, the level of crime in and uncaring.’
and Columbia University are the park was far lower than it
located in Manhattan’s Morn- was years ago, he said.
ingside Heights. “The overall message is
Two minors have been that we need to recommit to Last year, it was sued by the
taken into custody in connec- Morningside Park’s safety,” federal government for expos-
tion with the stabbing, and in- Mr. Taylor said. “It’s come ing children to lead paint.
vestigators were looking for a such a long way.” In January, the housing au-
third suspect, said NYPD Chief Felix Huang and Jessica thority was placed under the
of Detectives Rodney Harrison. Xia, both 22, on Thursday guidance of a federal monitor.
Family and friends of Ms. were walking a block away A spokesman for the monitor
Majors described her as a vi- from the site where Ms. Ma- declined to comment on the
brant, talented young woman jors was attacked. lawsuit Thursday.
who loved making music, as- The Columbia graduate en- Of NYCHA’s more than
pired to be a writer and had gineering students said the 100,000 housing units, Mr. Jo-
settled into life in New York. campus generally is safe, but sephson said more than
“Tess shone bright in this added that they avoid Morn- 34,000 households were
world, and our hearts will ingside Park. threatened with eviction by
CAITLIN OCHS FOR THE WALL STREET JOURNAL

never be the same,” her family Ms. Xia said she has a NYCHA over nonpayment of
said. “sense of safeness,” but Mr. rent in 2018. He said a large
Makeshift memorials for Huang said there also is “some number of those eviction pro-
Ms. Majors were set up at an probability of crime” in the ceedings were due to errors
entrance to Barnard and at area. made by the housing authority.
Morningside Park, and evening Ms. Majors’s death, he said, Yvonne Lane, a plaintiff in
vigils were planned. will change his behavior. the lawsuit who has lived in the
Tovah Klein, a psychology “In the past, I would go Stuyvesant Gardens Houses in
professor and director of the home at 9 or 10 from the li- Brooklyn for nearly 50 years,
Barnard College Center for brary,” he said. “Now, maybe 6 was pushed to the brink of evic-
Toddler Development on cam- or 7.” tion due to a mistake, she said.
pus, said she cried when she —Leslie Brody Ms. Lane retired from her
saw one of the memorials. A memorial for Tessa Majors was set up Thursday at Barnard College, an elite school for women. contributed to this article. job as a recreational therapist
at a nursing home because of
severe arthritis in July 2018.

Schools Boost Diversity With Admissions Change She said she notified NYCHA
of her pending retirement that
spring. When her monthly in-
come dropped from more than
BY LESLIE BRODY to 16%, from 5%. tion Council for District 3, a with District 3 to identify areas last year. Nearly all of its stu- $4,000 to about $1,500, her
The data offers an early largely advisory group of par- where we can collaborate in an dents are black or Hispanic. rent was supposed to decrease
A push to desegregate public peek at how the plan might ent representatives. She said effort to better integrate their “I don’t think this plan con- from $1,431 to $428. That
middle schools on Manhattan’s play out. The system, under she was frustrated, however, schools,” a spokeswoman said. sidered the negative effects on didn’t happen until December
Upper West Side and south Har- Chancellor Richard Carranza, that the city Department of Most District 3 middle schools like mine,” said West 2018, according to the lawsuit.
lem by changing the admissions faces pressure from integra- Education didn’t send enough schools are still selective. Fam- Prep’s principal, Carland By January 2019, NYCHA
system has shifted enrollment tion advocates to add racial extra funding to help teachers ilies rank their choices, schools Washington. “As a result of started eviction proceedings
slightly, new data showed. balance to many schools. Dis- adjust to assisting children rank applicants by test scores the plan, diversity in our against Ms. Lane for unpaid rent,
This fall marked the first for trict 3 pursued that goal by with a broader mix of back- and other factors and the de- school has not changed and despite the agency issuing a no-
the new admissions system in setting targets for economic partment makes matches. Al- our enrollment declined, tice in September that her rent
District 3. In a plan that city of- and academic diversity at 16 lowing schools to screen stu- which results in less resources would be lowered, the suit says.

11
ficials and some parents hailed schools for grades six through dents has led to concentrations for the school.” Ms. Lane said she battled
as a model—and other parents eight. They said the strategy of white, relatively wealthy Mr. Washington wants the with NYCHA in housing court
opposed—the district gave pri- helped the students most likely students at several popular, district to explore eliminating for more than six months, and
ority for a quarter of sixth- to suffer the consequences of high-achieving schools. selectivity in middle-school eventually was given emergency
grade seats at each middle long-term segregation. of the 16 participating middle At Booker T. Washington, admissions, a shift made re- assistance from the city’s Hu-
school to low-income, low-per- Some parents resisted the schools moved closer to goals. the share of black and His- cently by District 15, which in- man Resources Administration,
forming students who applied. plan, worried that their high- panic sixth-graders inched up cludes Brooklyn’s Park Slope. which paid off more than $3,000
At two of the district’s larg- performing children might be this fall to 28%, from 22%. At Overall, District 3’s unau- of her back rent—an amount
est, most-sought-after and edged out of desirable schools West End Secondary, that dited enrollment data showed which, she said, she must repay.
highest-achieving schools, for and that classroom instruction grounds and skills. share grew to 31%, from 25%. that fears of substantial white On her fixed income, which
example, the children in that might weaken, but the depart- Department of Education of- At least one middle school flight didn’t pan out: Of 1,270 comes from Social Security,
priority group edged higher. ment approved the plan in ficials said 11 of the 16 partici- lost enrollment as children children enrolled in sixth the most she can pay in a
At Booker T. Washington, they June 2018. pating middle schools have with low test scores got new grade in the district this fall, given month is about $25, she
increased to 18% of sixth-grad- “I’m cautiously optimistic moved closer to diversity tar- opportunities to head else- 5% are Asian, 24% black, 33% said. “It will be a while,” she
ers this fall, up from 9% last that progress is under way,” gets. “We are supportive of where. Only 49 sixth-graders Hispanic, 32% white and 5% said when asked how long it
year, city data showed. At said Kimberly Watkins, presi- their community-driven plan enrolled in West Prep Acad- other. The percentages were might take her to dig out of
West End Secondary, they rose dent of the Community Educa- and are continuing to work emy in Harlem, down from 62 roughly the same last year. the debt.
 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.
THE WALL STREET JOURNAL.
Trade Center
Site Manager
Gets Extension
BY PAUL BERGER
The Port Authority of New
York and New Jersey has ex-
tended its contract with the
firm that manages sections of
the World Trade Center site
despite a spate of problems.
Port Authority board mem-
bers voted unanimously
Thursday to extend Cushman
& Wakefield’s contract for one
year. The real-estate services
firm oversees centralized in-
frastructure and public spaces
at the 16-acre site in lower
Manhattan, including the
World Trade Center Oculus.
The Port Authority has
spent hundreds of thousands
of dollars patching leaks at the
Oculus after its $32 million
skylight broke while being
maintained and operated un-
der Cushman & Wakefield’s su-
pervision in 2018. The agency,
which also runs the region’s
major ports and airports,
hasn’t figured out if or when it
will repair the skylight.
Cushman & Wakefield also
has come under scrutiny after
the Port Authority inspector
general began looking into one
of the firm’s employees follow-
NEW JERSEY
Lawmakers to Weigh
Cannabis Referendum
New Jersey lawmakers on
Thursday scheduled hearings on
a proposal to let voters decide in
2020 whether to legalize recre-
ational marijuana.
Democratic-led Assembly and
Senate committees set hearings
on the proposed referendum.
Lawmakers failed in March to
advance legislation legalizing rec-
reational cannabis, despite sup-
port from Democratic leaders
and Democratic Gov. Phil Mur-
All the Power
Without the Pinch
Healthcare Starts with Healthy Food.
Since 1985, we’ve been cooking and home-delivering nutritious, individually tailored meals
to people living with serious illness in the NYC metropolitan area.
Being sick and hungry is a crisis. You can help.
Donate, volunteer, or just learn more at glwd.org
godslovewedeliver
* *
ing a tip in 2016.
The investigation, which is
ongoing, led the New York At-
torney General’s Office to file
criminal charges against an
electrical manager, accusing
him of taking more than
$17,000 worth of bribes in the
form of expensive sports tick-
ets and other gifts in return
for confidential information
that helped a contractor.
The attorney general also
accused the manager, James
Luckie, of Setauket, N.Y., of in-
volvement in hiring unquali-
fied electricians at the site
whose work led to potential
safety issues. The attorney
general said that the electri-
cians received about $1.3 mil-
lion in total compensation
from the Port Authority.
Mr. Luckie pleaded not
guilty in May. His next appear-
ance in New York Supreme
Court is scheduled for Janu-
ary. An attorney for Mr. Luckie
said Thursday that his client
hadn’t received a bribe and
isn’t guilty of a crime.
Port Authority executive di-
rector Rick Cotton, speaking
after Thursday’s vote, said the
agency will scrutinize Cush-
phy, so they plan to seek sup-
port from voters.
The proposed amendment
must pass with a three-fifths
majority in both houses in a sin-
gle year, or with a simple major-
ity in two consecutive years to
appear on the ballot.
Under the amendments, vot-
ers would be asked whether to
approve recreational marijuana
for those 21 and older.
All sales of cannabis products
would be subject to the 6.625%
sales tax.
Towns could pass ordinances
to charge a local tax as well.
—Associated Press
NY
GREATER NEW YORK
The Port Authority has spent hundreds of thousands of dollars patching leaks at the Oculus after its $32 million skylight broke in 2018.
man & Wakefield during the
one-year contract extension.
“We did it in order to give us
adequate time to take a look
at the long-term future,“ he
said.
A Port Authority spokes-
man later clarified that the
agency’s options included
opening the management con-
tract up for competitive bids
GREATER NEW YORK
NEW YORK
State Tries to Keep
E-Cigarette Ban Alive
New York’s ban on flavored e-
cigarettes is still held up in court,
but the state’s Public Health and
Health Planning Council voted
Thursday to keep the emergency
ban on the books for another 90
days in case the judge rules in the
state’s favor.
The council had approved the
ban in September, but a state
appeals court blocked New York
in October from enforcing it.
A spokeswoman for the De-
@godslovenyc God’s Love We Deliver is a member of the Food is Medicine Coalition (FIMC).
To learn more about FIMC’s work around the country, visit fimcoalition.org
in the near future.
A spokesman for Cushman
& Wakefield declined to com-
ment.
The Port Authority first
awarded the seven-year man-
agement contract to Cushman
& Wakefield in 2013. That
agreement included three one-
year renewal options, subject
to board approval.
partment of Health said the vote
ensures the state has the emer-
gency regulations on the books
if the courts uphold the ban.
Critics including the Vapor
Technology Association sued the
state over the ban, which they say
is governmental overreach that
would hurt small businesses sell-
ing e-cigarettes and adult smokers
who say flavors help them quit.
Supporters such as the American
Cancer Society’s advocacy group
said they would continue pushing
for the ban on flavored e-ciga-
rettes and for laws to make simi-
lar restrictions permanent.
—Associated Press
Friday, December 13, 2019 | A11B
The first renewal approved
Thursday will run through
June, 2021. The firm will re-
ceive an annual management
fee of up to $850,000.
Port Authority board mem-
bers also authorized Cushman
& Wakefield to spend up to
$50 million in 2020 for man-
agement, operation and main-
tenance services at the World
CONNECTICUT
Husband Asks Court
To Lift a Gag Order
A lawyer for a Connecticut
man whose estranged wife disap-
peared seven months ago asked
the state Supreme Court on
Thursday to lift a gag order in the
criminal cases against his client.
Norman Pattis, the attorney
for Fotis Dulos, told the justices
the gag order imposed by a trial-
court judge violates Mr. Dulos’
free-speech rights and prevents
him from fighting allegations by
police who believe he killed Jenni-
WILLIAM VOLCOV/ZUMA PRESS
Trade Center site. That sum in-
cludes $37 million for repairs,
maintenance and materials.
Mr. Cotton said he didn’t
know whether any of that
money would be used to repair
the skylight because the au-
thority is still waiting for an
engineering evaluation of
what went wrong and is con-
sidering its options.
fer Dulos, the mother of their five
children. Prosecutor Robert Schei-
nblum said the state requested
the gag order to avoid prejudicing
potential jurors. The court didn’t
rule on the request Thursday.
Ms. Dulos hasn’t been seen
since May 24. Mr. Dulos and his
ex-girlfriend, Michelle Troconis, are
charged with tampering with evi-
dence and hindering prosecution.
They have pleaded not guilty.
In arrest warrant affidavits,
police contend that Mr. Dulos
killed Ms. Dulos at their home
and covered it up with Ms. Tro-
conis’ help.
—Associated Press
 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.

A12 | Friday, December 13, 2019 THE WALL STREET JOURNAL.

LIFE&ARTS

CLOCKWISE FROM TOP: DENNIS MANUEL/GETTY IMAGES; JACK PLUNKETT/INVISION/ASSOCIATED PRESS; TIM MOSENFELDER/GETTY IMAGES; CAMERON MCCOOL
THE BEST MUSIC OF 2019

In an Age of Short
Attention Spans,
The Album Is Alive
and Well

BY MARK RICHARDSON

T
he album may no
longer be the stan-
dard platform to
measure musical
worth—streaming
has been chipping
away at its primacy for over a de-
cade—but it still has a lot of life
left in it. Many of the most cre-
ative artists continue to do their
best work in an extended format,
where they can show their range Clockwise from below:
and command attention for longer Earl Sweatshirt
periods. These dozen records, performing in New
some short and sweet and some Orleans in March; Angel
epic, were among the year’s finest Olsen; Billie Eilish
and make a convincing argument performing in Austin in
for the health of the form. October; FKA twigs
The primary members of experi- performing in Atlanta
mental Brooklyn band 75 Dollar in October; the cover of
Bill are guitarist Che Chen and Lana Del Rey’s album
percussionist Rick Brown. But on ‘Norman F—ing
their album “I Was Real” (Thin Rockwell!’
Wrist/Black Editions) more than a
half-dozen additional players
joined them, adding saxophones,

Many of this year’s best

releases reveal the
vibrancy of an extended
musical format.

amplified viola and more. Mr. Chen

and Mr. Brown specialize in slowly
developing blues-drone instrumen-
tals that suggest a fusion of the
Velvet Underground and Missis-
sippi Fred McDowell, but their
hypnotic experiments are surpris-
ingly easy to sink into.
Angel Olsen took a brilliant turn
toward orchestral rock on “All
Mirrors” (Jagjaguwar). Teaming
with producer John Congleton, she
created an ambitious song cycle
about falling in and out of love,
with moments of pain and joy ac-
centuated by impressionistic
string arrangements. Some may
have missed the propulsion of her
past records’ roots-inflected rock,
but the overwhelming drama of
“All Mirrors” was a perfect fit for
Ms. Olsen’s charged narratives.
In May, Big Thief released
“U.F.O.F.”—a record of raw folk-rock
that seemed a lock for year-end
lists—but they topped it with “Two
Hands” (4AD), their second album
in five months. Anchored by the
plaintive voice of bandleader Adri-
anne Lenker, Big Thief makes
searching songs that probe essen-
tial questions—Why are we here?
How do we move on from trauma?
How do we connect with others
without losing ourselves?—on a hu-
man scale.
Billie Eilish was one of 2019’s
breakout stars, and much of the
surrounding conversation focused
on her youth (she turns 18 this
month) and her skill at building an
online fanbase. But her album
“When We All Fall Asleep, Where
Do We Go?” (Darkroom/Inter-
scope) is a fascinating aesthetic
object, bringing together a range
of influences (hip-hop, folk, pop)
into an expression that felt new.
Most memorable were Ms. Eilish’s
whispered vocals—brace yourself
for a raft of imitators—that made
a pop smash feel as close and di-
rect as a text message.
On “i,i” (Jagjaguwar), Justin
Vernon’s band Bon Iver expanded
upon the splintered aesthetic of
their recent work, making earthy
and grounded tunes that were
electronically processed to within
an inch of their lives. Filled with
an uncountable number of bloops,
bleeps, whooshes, and all-consum-
ing bass drops, “i,i” is tech-ob-
sessed but keeps circling back to
the warmth of Mr. Vernon’s voice
and his wide-eyed philosophical
outlook.
Alabama Shakes frontwoman
Brittany Howard dug deep into
her own past and emerged with
“Jaime” (ATO), her musically var-
ied and emotionally riveting solo
debut. She named the record after
her sister, who died at an early
age, and Ms. Howard uses her
family’s history as a springboard
to explore race, sexuality, religious
faith, and lots more. If that
sounds didac-
tic, the LP is
anything
but—it often
plays like a
party, drawing
from hip-hop
and classic
soul in songs
that are funny,
self-aware and
deeply moving.
While Tyler, the Creator made
his most accessible album yet this
year, the R&B-inflected “Igor,” rap-
per Earl Sweatshirt, his compatriot
in the Odd Future collective, moved
in the opposite direction. The EP-
length “Feet of Clay” (Tan
Cressida/Warner) is dense, knotty
and dark, a showcase for surreal
wordplay and druggy sonics built
from roughly c hopped samples.
The continuous tumble of fractured
imagery mimics the sensation of
absorbing too much information at
once.
If Earl Sweatshirt’s record finds
truth in ugliness, “Magdalene”
(Young Turks)—the first LP in five
years from London avant-pop
singer FKA twigs (born, Tahliah
Barnett)—imbues emotional range
with elegance. Mostly produced by
versatile beatmaker Nicolas Jaar,
“Magdalene” is a collection of per-
sonal songs infused with mythol-
ogy and arranged into a sumptu-
ous package.
British electronic producer Sam
Shepherd has been releasing mu-
sic as Floating Points for a decade,
and this year’s “Crush” (Ninja
Tune) is his finest record yet. Mr.
Shepherd is a musical shape-
shifter, assembling melodic instru-
mental pieces that incorporate
jazz and modern composition
while returning regularly to the
steady beats of techno. The tracks
on “Crush” are lush and richly cin-
ematic, an invitation to close your
eyes and make your own pictures
as they unfurl.
In the past, Jessica Pratt’s folk-
based albums also seemed like
soundtrack fodder, perhaps some-
thing to accompany a dramatic in-
terlude in a Wes Anderson film. But
“Quiet Signs” (Mexican Summer/
City Slang) burrowed into pure at-
mosphere and built a world of its
own. Most songs feature just Ms.
Pratt’s voice and guitar bathed in
reverb, a presentation that sounded
positively eerie. It argued that si-
lence sometimes speaks the loudest.
Torch singer Lana Del Rey also
stripped her music to its essentials
on her album “Norman F—ing
Rockwell!” (Polydor/Interscope),
but she used the additional space
to tackle big themes. Partnering
with producer and songwriter Jack
Antonoff, Ms. Del Rey assembled a
collection of densely allusive songs
about hope, desire and acceptance.
Confessional singer-songwriters
like Joni Mitchell were an inspira-
tion, but Ms. Del Rey projects her
introspection onto familiar arche-
types, telling her story through
our shared pop culture.
Young rapper Polo G (born Tau-
rus Bartlett) had one of the year’s
best debuts with “Die a Legend”
(Columbia), an album that chroni-
cled the chaotic and violent life of
his native Chicago with a wounded
heart. Mr. Bartlett’s lightly melodic
and word-packed rhyme style is
his calling card, but his secret
strength is his empathy. He notices
people living in poverty doing
whatever they need to do in order
to survive and doesn’t judge them,
and he describes where he comes
from and where he wants his life
to go in remarkable detail. It’s a
complicated picture that requires
time to come into focus, and it
makes you glad artists like him
and others here are still making
statements that reward patience.
Mr. Richardson is the Journal’s
rock and pop music critic. Follow
him on Twitter @MarkRichardson.
 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.

THE WALL STREET JOURNAL. Friday, December 13, 2019 | A13

LIFE & ARTS

THE BEST TELEVISION OF 2019

CLOCKWISE FROM TOP LEFT: FRONTLINE; HULU; HBO

The Drama of
War and the
Pursuit of Justice
BY DOROTHY RABINOWITZ Clockwise from above: August
Wittgenstein and Rick Okon in
THE BEST SHOWS of 2019 were ‘Das Boot’; Albane Courtois and
set around the globe and shared a Suranne Jones in ‘Gentleman
common theme—the drama of war Jack’; Waad al-Kateab and her
and the pursuit of justice. Subti- daughter, Sama, in ‘For Sama’
tles abounded.

“Das Boot’’ (Hulu) powered in, as- forming strength those skills im-
sured, elegant and phenomenally parted to the drama.
gripping, no small triumph given its
status as a sequel. Written chiefly “Gentleman Jack” (HBO), Sally
by Johannes W. Betz and Tony Wainwright’s drama set in Halifax,
Saint, and directed by Andreas England, in 1832, was based on the
Prochaska, the series begins where several million words of an actual
the 1981 film “Das Boot”—based on diary kept by Anne Lister—land-
Lothar-Günther Buchheim’s novel of owner, world traveler and utterly
the same name—leaves off. The singular woman for her time and
time is 1942; the German U-boats place. This was evident not only
assigned the task of sinking Allied from her dress—folds of black
supply ships are themselves going wrapped around a body of impres-
under, decimated, thanks to the sive height giving her a distinctly
cracking of the Enigma code that masculine appearance—but her in-
made it possible to read German difference to fears that the nature
communications. of her private life become known
This was a reboot that came to the world. She has loved only
with additions (based on Buch- women in that life. Portrayed by
heim’s 1995 sequel)—nothing less Suranne Jones, she’s in her early
than the inclusion of a whole new 40s and about to have her heart
dimension of the war, this one kidnapping and murder of a Mus- broadsheet. The greatest charm of ary Israeli spy who succeeded in broken again in this smashing se-
fought on dry land in occupied lim teenager from East Jerusalem this “Masterpiece” series (written passing himself off for years, at ries, full of heart and wit.
France between Resistance fight- so exceptional in its brutality that by Mike Bartlett, directed by Tom the highest levels of government
ers and their German pursuers. In all of Israel seemed to grieve, Vaughan) may have derived from and society in Syria, as a wealthy “Tricky Dick” (CNN), notwith-
this battle, a young German among them the parents of the its pleasingly improbable preoccu- businessman and patriot devoted standing its fatuous title, delivered
woman turned Resistance member three boys killed by Hamas. This pations—its imagining of a world, to the Syrian nation. A riveting a remarkably penetrating portrait
(a stellar Vicky Krieps) wins the remarkable work of storytelling by today, in which papers war about saga in itself (written and directed of Richard Nixon—and one very
heart of the chief Gestapo investi- Hagai Levi, Joseph Cedar and Taw- matters like journalistic ethics. by Gideon Raff), “The Spy” was ut- far from the standard compendium
gator hunting the anti-Nazi under- fik Abu-Wael was infused with an- The idealistic heroine from the terly transformed by Sacha Baron of Nixon lore. A human picture.
ground (a terrifyingly nuanced guish, relentless in the hard light broadsheet, the Herald, was ap- Cohen, dazzling in the role of the
performance by Tom Wlaschiha). it shone on every aspect of the re- palled by the no-holds-barred Mossad spy, the imposter who was “For Sama” (PBS) was conceived
If this on-land addition could sponse to that murder—and, not thuggery of the tabloid, the Post, able to win hearts and minds as he by Waad al-Kateab, an activist with
never match the breath-shortening least, to the determined agents of whose reporters thought nothing made his way into intelligence cir- the pro-democracy insurgents in
drama taking place in the confines the Shin Bet, Israel’s internal secu- of threatening parents of children cles in Syria, so persuasive was his Syria, who devoted herself to re-
of the U-boat, it was nevertheless rity agency, who set about finding who had committed suicide with air of authority. It should have cording life during the six-month
one capable of delivering unfailing the killers. humiliating publicity if they come as no surprise that Mr. siege of Aleppo, which ended in
suspense with brilliant ease. weren’t granted exclusives. The Baron Cohen, a distinguished sati- 2016—a hell of daily bombings by
“The Press” (PBS ), a boisterous flint-hearted editor of the Post, rist heretofore known only for his Vladimir Putin’s planes, which made
“Our Boys” (HBO) reconstructed fantasy set in contemporary Lon- had, of course, no such concerns. comic genius at the art of passing hospitals their prime target. The de-
the events that followed the kid- don, had as its subject two British He was portrayed by Ben Chaplin, fictional characters off as real, tails of this “Frontline” documentary
nap and murder of three Jewish newspapers engaged in mortal who ran away with the show. could do so here to such sublime are unforgettable, as is its testa-
teenagers by agents of Hamas in combat—one a low-life tabloid, the “The Spy” (Netflix) chronicled effect in an entirely straight role. ment, in the midst of the slaughter,
2014. There would be a revenge other a somewhat higher-minded this history of Eli Cohen, legend- No less striking was the trans- to the heroic defiance of the rebels.

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.
1 2 3 4 5 6 7 8 9 10 11 12 60 “Who ___?” PUZZLE
CONTEST
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d 0s <0
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Vancouver
V Calgary
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10s
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p 17 18 19 64 Fuel figure
30s 20s
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d 30s 20 21 22
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31 Discouraging
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g 30s 67 Somewhat
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Albany
b Boston
t 32 Southernmost
30s Pierre
P
30 31 32 33 68 Capitol Bldg.
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p s /St.
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rtford 60s Ivy
30s 30s
Milwaukee
k t
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Salt La ke City
Lake C tyy
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ll Chicago
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69 Took the bus 35 Tripping tune
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p i gfi ld
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hi on D.C.
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DC 38 39 40 41 42 70 Sculptor Henry
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20s Denver 90s
71 Yoga need 37 Jeopardy
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n Francisco LLas Topeka Kansas Charleston
Charles Richmond
h d 43 44 45
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50s 46 47 48 49 50 51 for short
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T c 60s 57 58 59 60 nut
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F Wor th
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D ll Jackson Birmingham
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T-storms 42 Raiders’ org.
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b JJacksonville
k ill 61 62 63 64 65 Development”
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A ti Houston
t 70s Stationary Snow 4 Grind away
Orlando
d 66 67 68
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10s 80s San
an Antonio
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Ta p
20s Honolulu
l 80s Showers Flurries 69 70 71 6 Squalid spots eco-conscious
Anchorage
A h Miami
30s 80s 47 Legolas, e.g.
70s 7 Onetime
40s Ice
OUT OF BOUNDS | By Mike Shenk Swedish 49 Cruel practice
imports 50 How Alaska is
U.S. Forecasts City
Today
Hi Lo W
Tomorrow
Hi Lo W City
Today
Hi Lo W
Tomorrow
Hi Lo W
The answer to 20 Spot in la mer 38 Victoria and 8 Elsa’s sister first among the
s...sunny; pc... partly cloudy; c...cloudy; sh...showers; this week’s contest 21 Name on a Albert states
Omaha 43 20 sn 24 11 pc Frankfurt 43 38 sn 47 41 sh 9 Amber, e.g.
t...t’storms; r...rain; sf...snow flurries; sn...snow; i...ice
Orlando 80 66 t 78 52 t Geneva 42 35 r 47 44 r
crossword is an trophy the 41 Solar wind 51 Swimming
NFL player whose 10 Melber of
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Anchorage 33 30 sf 34 29 sf Pittsburgh 41 35 r 42 31 r Istanbul 58 51 pc 63 49 pc twice 11 Mayflower
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initials 15 More forbidding
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42 32 c
83 72 c
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83 72 r
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Rio de Janeiro
47 43 r
86 73 t
51 45 sh
83 74 t 16 History divisions sermon 54 Conk out Previous Puzzle’s Solution
Houston 73 47 pc 72 54 s Today Tomorrow Riyadh 79 56 pc 72 61 c 17 Thousandth of a 33 Bullring cheer
City Hi Lo W Hi Lo W
56 Turner of film I T S S O S T O
P P I E D
Indianapolis 46 33 c 41 21 r Rome 60 41 t 59 45 pc yen, once 34 Fuzzy on the K A P U T P A R
E U N D O
Kansas City 53 30 pc 35 17 s Amsterdam 45 40 sh 46 41 sh San Juan 85 76 sh 87 76 pc 57 Earning a E X A C T F A R E
S B L I P
Las Vegas 62 45 s 62 44 pc Athens 61 55 pc 61 52 r Seoul 44 29 r 42 24 s 18 Scaly pet links five-yard penalty S I N K E R G L
OW A T E
R O B E S A B Y S S
Little Rock 52 36 pc 57 37 s Baghdad 67 46 pc 67 48 pc Shanghai 62 45 pc 62 51 pc 19 Function with a 37 Negri of silent (and where you’ll N O L O A T E
R R E
Los Angeles 72 54 s 65 52 pc Bangkok 89 69 s 90 74 pc Singapore 83 76 t 81 76 r wave films find a clue) S P U T T E R S O H A R E
Miami 81 70 pc 85 65 t Beijing 49 23 pc 41 26 pc Sydney 71 64 c 78 66 pc F A C T O I D F L O R I D A
Email your answer—in the subject line—to crosswordcontest@wsj.com
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Milwaukee 42 28 c 34 20 c Berlin 38 36 c 42 36 sh Taipei City 77 65 s 75 64 pc L E A N N L I L L I P U T

Minneapolis 23 15 sn 16 -2 c Brussels 44 40 r 47 40 sh Tokyo 48 43 c 61 44 s W E S S O N T A C T
by 11:59 p.m. Eastern Time Sunday, Dec. 15. A solver selected at random SWE A R P R I E D
Nashville 52 44 r 53 36 c Buenos Aires 75 70 pc 84 69 pc Toronto 41 33 c 38 31 r will win a WSJ mug. Last week’s winner: Anna Hargan, West Allis, WI. T E X S U R E O U T P U T
New Orleans 68 55 sh 70 53 pc Dubai 79 69 s 81 68 s Vancouver 46 39 sh 44 35 pc R A C E P U T O N A N A C T
New York City 48 48 r 57 43 r Dublin 45 33 sh 41 32 sh Warsaw 40 35 c 40 34 r Complete contest rules at WSJ.com/Puzzles. (No purchase necessary. A V O N A C T H D U L L Y
Oklahoma City 59 32 s 52 31 c Edinburgh 42 35 sh 41 34 pc Zurich 40 35 sn 49 43 r Void where prohibited. U.S. residents 18 and over only.) WE N D T E AM S T E A L
 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.
A14 | Friday, December 13, 2019
The Most Improbable Player in the NBA
Duncan Robinson played Division III basketball. Now he’s starting for the Heat and is one of the league’s best shooters.
BY BEN COHEN
O
ne of the most peculiar
moments of the most
peculiar NBA player’s
basketball life hap-
pened in a game after
his senior year of high school,
when he didn’t know where he’d be
playing in college, only that it
would be a school that never sends
people to the NBA.
What happened in this one un-
forgettable game was that Duncan
Robinson was open and didn’t
shoot. His coach immediately called
timeout. “That’s selfish,” Michael
Crotty told him.
This was such an odd thing for
Robinson to hear that he wasn’t ex-
actly sure how to respond.
“He looked at me like I had nine
heads,” Crotty said.
“You’re being selfish if you don’t
shoot,” Robinson says now. “It’s so
backward-thinking to every kid
growing up.”
Not anymore. This counterintui-
tive notion became a cornerstone
of basketball as Duncan Robinson
went from a small town in New
Hampshire to Phillips Exeter Acad-
emy to Williams College to the Uni-
versity of Michigan to the develop-
mental G League after he was
undrafted. Then he became one of
the most improbable players in
NBA history. Now he’s
starting for the Miami
Heat.
He’s the basketball
equivalent of a kid who’s
afraid of heights becoming
an astronaut. By the time
he made his giant leaps
from Division III to Divi-
sion I to the NBA, the
sport was in the middle of
a revolution that placed a
premium on shooting, and
Duncan Robinson is the hu-
man embodiment of how
much the game has
changed since the days of
Tim Duncan and David
Robinson.
His story is a fairytale.
It’s also an economics les-
son. NBA teams have new
demands—and Duncan
Robinson is the supply.
He’s a surprisingly valuable
player because the talents of some-
one Heat coach Erik Spoelstra has
called “one of the best shooters on
this planet” are suddenly worth
millions of dollars.
“It took so many things outside
of my control to get to this point,”
said Robinson, who is shooting 45%
on 3-pointers this season. “That’s
not lost on me.”
Robinson went to a middle
school with five kids in his graduat-
ing class. When he was a freshman
in high school, he was only 5-foot-7.
By the time he was a junior, he was
coming off the bench for a medio-
cre team. His wildest dream was to
play D-III college basketball.
“I wanted to use basketball to
get into a school that normally I
wouldn’t be able to get into,” he
said. “A lot of people at that point
were, like, that would be a reach
for you.”
How to Make It in New York
On $324 Million From the Yankees
Dear Gerrit Cole,
Welcome to New
York, instant money-
bags! Everyone in
sports is talking about
the absurd amount of
cash you’re going to be making as
a pitcher for the New York Yan-
kees—$324 million over nine years,
which comes to (WARNING: sports
writer doing math!) a lot of dough
per season…$36 million! Thirty-six
million just to throw a baseball
about once a week, and occasion-
ally get yelled at by the back pages
of the Post and the Daily News.
Amazing. What a town!
It’s a wild sum, it really is, in-
stantly making you one of the
highest-paid athletes on the planet,
and, yes, it’s going to draw some
scorn and ridicule—Joe DiMaggio
once took grief for asking for
$40,000. The Yankees told Joe D.
to sit on his wool hat, and he
wound up getting $37,500.
But Gerrit, here’s a hard, unpop-
ular truth that nobody’s going to
tell you: Thirty-six million a year is
not that much money, not in this
wonderful, awful city. New York is
a criminally expensive place. It’s
become a Holiday Inn for billion-
aires. You can easily blow $36 mil-
lion in a weekend here, and that’s
without ordering appetizers, or any
stupid bourbon cocktails with rose-
mary twigs in them.
Elisabeth Robinson still remem-
bers the incredulous response of
his school’s principal when she in-
quired about filming basketball
games for her son’s college recruit-
ment: “You don’t think he’s going
to play basketball in college, do
you?”
Duncan Robinson couldn’t be
sure himself. But it was around this
time when something useful hap-
pened: He went from 5-foot-7 to 6-
foot-7 so quickly that his wardrobe
couldn’t keep up.
“I have an older brother, so I
have a lot of hand-me-downs,” Dun-
can said. “But then I outgrew him.”
“We had to buy a lot of shoes
and pants,” Elisabeth said.
She wanted him to get a summer
job before his senior year of high
school. He had a different idea. In-
stead of frying eggs as a line cook
at the local general store, Robinson
JASON GAY
So here’s some unsolicited ad-
vice:
I’d probably start with a place to
live. Gerrit, you will encounter
folks who are going to try and talk
you into the suburbs, and there are
perfectly wonderful people in the
suburbs, but come on, man: You
just signed with a club in New York
City. You should live in the city,
just to experience it. It’s New York!
You know what Sinatra sang! Don’t
move to Connecticut, at least not
right away. Nothing interesting
happens in Connecticut after 2
p.m.
The problem is, apartments in
New York City are pricey. You’re
going to be shocked. A rich fella
named Ken Griffin recently paid
$238 million for a condo. That’s
right—close to a quarter billion for
a home in Manhattan. Though in
fairness, the place Griffin bought
has some pretty nice views. And
natural light. And, I think, more
than one bathroom.
Gerrit, I hate to be a killjoy, but
you’re not going to be able to af-
ford that kind of joint. A condo
that costs $238 million—it’s out of
your price range. You’re going to
have to find something more prac-
tical. I’d say you should start with
maybe a two-bedroom. There are a
handful of two-bedrooms left in
New York City in the $50 million
range. Granted, they may have a
SPORTS
asked for permission to spend the
summer concentrating on basket-
ball. It paid off. “I had a good se-
nior year by my standards,” he
said. “Not by the world-of-basket-
ball standards.”
It was good enough that he took
a postgraduate year at Exeter after
his four years at The Governor’s
Academy, and he caught the atten-
tion of Williams, the academically
elite liberal-arts college in the Berk-
shires. Then he had another good
year by anybody’s standards: Rob-
inson was the national freshman of
the year on a team that played for
the national title. It was such a
good year that he began to think
about transferring.
Robinson visited Davidson Col-
lege, the alma mater of Stephen
Curry, and the University of Michi-
gan. Since he couldn’t have imag-
ined that he’d one day play basket-
shower in the kitchen, and the bed
is a contraption known as a Mur-
phy bed, but they are perfectly fine
apartments for a fellow just start-
ing out in New York City.
Do you know what a Murphy
bed is, Gerrit? You’re about to find
out.
You’re going to have to limit
your expectations. For $50 million,
you’re not going to get everything
you want. You’re going to have to
make compromises. The place
probably isn’t going to have a
doorman. It might not have an ele-
vator. It’ll be what’s called a “walk-
up,” which means you’ll have to
walk up the stairs with all of your
groceries, and when you get all the
way to the top, you’ll realize you
forgot to buy almond butter, and
you’ll hate yourself.
Oh who am I kidding? You can’t
afford the almond butter, either.
The good news is a walk-up
apartment will keep you in shape.
So will your transportation. Gerrit,
don’t believe what the Car Mafia
says: New York City is for walking.
You’ll be able to walk to Yankee
Stadium! Depending on where you
get your apartment, it will take you
anywhere from five minutes to four
hours. A four-hour walk sounds
like a lot, but the time just flies by.
Along the way, you will meet New
Yorkers, nice people who have no
problem with yelling at you if
Duncan Robinson said coaches have urged him to shoot as much as he can,
first as an AAU player, bottom, and now with the Miami Heat, top.
ball for a living, he wasn’t going to
leave Williams for a lackluster edu-
cation. “At least my mom wasn’t
going to let me,” he said. He chose
Michigan after coach John Beilein
convinced him that D-I basketball
wasn’t a reach for him.
It would be Robinson’s third con-
secutive year in a new place at a
higher level of basketball that had
been implausible the year before.
His redshirt year happened to
coincide with a remarkable period
of change in his sport. The Golden
State Warriors were about to win
their first title. Curry was about to
win his first MVP. The game of bas-
ketball was evolving in Robinson’s
favor.
“I had one year to become as
good of a player as I could possibly
become with all the resources in
the world and a staff entirely in-
vested in my development,” he
said. “I had never had that. I re-
member calling my friends and be-
ing like, remember when we used
to shell out $100 to drive down to
Boston at 5 a.m. and work out?
Now it’s some guy’s job to work me
out.”
Robinson is the first to admit
that none of this was planned. He
didn’t go to Williams so he could
go to Michigan, and he didn’t go to
Michigan so he could get to the
NBA.
But he thrived at Michigan,
where the biggest lecture is nearly
the size of the undergraduate popu-
lation of Williams, and playing in
the NBA was no longer so prepos-
terous. He went undrafted but
signed with the Heat’s team in
The Yankees made Gerrit Cole the highest-paid pitcher in baseball history.
you’re in the way. And even when
you’re not in the way.
Better yet, get yourself a pass
for the bike share. Bikes are much
better than cars at getting around
town, Gerrit. I have no joke here. I
just like saying this to make car
people mad.
As for entertainment, watch
yourself. You probably should only
dine out once or twice a month in
New York City, because dining out
starts to really add up—especially
if you have a lot of friends who in-
sist on celebrating their 34th birth-
days at an expensive place, which
gets to be super annoying, who
cares about a 34th birthday. You’re
going to be stunned to pay $6 for a
cup of coffee. I won’t even tell you
how much a pastrami sandwich
now costs. As for those bourbon
cocktails, they’re $14 if they come
THE WALL STREET JOURNAL.
FROM TOP: JASEN VINLOVE/REUTERS; MICHAEL CROTTY
summer league and was rewarded
with a contract in the G League.
He would soon learn that every
level of basketball abides by the
same rule.
“I was having a tough time figur-
ing out what was a good shot—and
then I quickly realized that every-
thing was a good shot,” Robinson
said. “I needed to literally shoot ev-
erything. I still have a hard time
wrapping my mind around it.”
Only last year in the G League
did he finally come around to the
unlikely idea that someone who
fantasized about D-III basketball
could be a contributor in the NBA.
The Heat felt the same way. They
signed him to a two-year, $3.1 mil-
lion deal that appears to be a bar-
gain now that he’s the shooting
guard in the league’s most efficient
lineup and, according to some met-
rics, among the game’s most useful
players.
The Heat have drilled into Rob-
inson’s brain that he simply can’t
shoot enough. Spoelstra orders him
to take crazy shots, shots that
might miss by several feet, shots
that make everyone in the arena
spit out their tequila. When he
doesn’t shoot, they make him run
sprints. They even showed him
video of how Robinson not shoot-
ing hurts the entire team. “It was
hard-wired,” he said. “A concerted,
deliberate, intentional effort to get
me to be more and more aggres-
sive.”
It has reached the point that his
past no longer matters to the Heat.
They’re too busy thinking about
Duncan Robinson’s future.
KATHY WILLENS/ASSOCIATED PRESS
without a rosemary twig. The in-
stant the bartender puts a rose-
mary twig inside it, it costs $19.
Cook at home now and then.
Take it easy on Broadway shows;
off-Broadway is where it’s at. Don’t
buy Knicks tickets—just stand on
the corner in a rainstorm and get
soaked by a passing bus, it’s the
exact same sensation. You can see
at least three animals in the Cen-
tral Park Zoo without buying a
ticket. Get your hair cut at a bar-
bershop, not a salon. Avoid spin-
ning classes. Steal someone’s Net-
flix password. Stay off Madison
Avenue. And Fifth. And listen to
the boomers: no avocado toast. I
haven’t even mentioned the city
tax. Wait until you hear about that.
You can make New York City
work, Gerrit. It’s a hell of a town—
even on $36 million a year.
 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.
THE WALL STREET JOURNAL.
The FBI’s Fusion Fiasco
The Federal
Bureau of In-
vestigation
has had its
worst week in
modern his-
POTOMAC tory. The Jus-
tice Depart-
WATCH
ment’s in-
By Kimberley
spector gen-
A. Strassel
eral found
that the bu-
reau had deceived a federal
court and abused Americans’
civil liberties. It was equally
humiliating for the crew that
gulled the FBI into its ex-
cesses: Fusion GPS, Christo-
pher Steele and their media
acolytes.
Fusion is the opposition-re-
search firm the Democratic
National Committee and the
Hillary Clinton campaign hired
in 2016 to kneecap Donald
Trump. Fusion in turn hired
Mr. Steele, a British former
spy, to compile the infamous
“dossier” that the FBI used to
obtain surveillance warrants
against former Trump aide
Carter Page. Mr. Simpson, a
onetime Wall Street Journal
reporter, tapped a network of
media buddies to provide the
operation cover.
For years, Mr. Simpson
spun a tale of how his firm—a
team of “professionals”—had
hired the “extremely well-re-
garded” former “lead Russian-
ist at MI6.” Mr. Simpson told
the Senate in August 2017 that
he wanted Mr. Steele to look
into Mr. Trump’s Russia busi-
ness dealings. So it was
“alarming” when Mr. Steele
instead found a “political con-
spiracy” between the Trump
campaign and Russia. Espe-
cially because Mr. Steele had
“a sterling reputation as a
person who doesn’t exagger-
A Rabbi Walks Into a Presbyterian Church
HOUSES OF I am a full- creasing number of Christians Rulings on Jewish law are When devoted Christians go
WORSHIP time pulpit believe that comprehending frequently engulfed in a laby- back to, and advocate for,
By Michael rabbi serv-
Gotlieb ing a Con-
servative
synagogue
in Santa Monica, Calif. This
year I also am periodically
teaching, counseling and
preaching to Christians as a
pastoral associate at Brent-
wood Presbyterian Church.
This may seem like a strange
arrangement, but it has been
fruitful for both congrega-
tions. Rather than trying to
convert each other, we’re
finding ways to enrich our
own faiths together.
Dave Carpenter, senior rev-
erend of Brentwood Presbyte-
rian, invited me. A visionary,
he genuinely encourages di-
versity of interpretation on
Scripture and religious life
from his pulpit. He believes,
as I do, that to be true ecu-
menicists we first need to be
rooted in our own traditions.
But we cannot stop there. We
have to reach out to people
with different convictions
thereby forming a wider reli-
gious community. This way we
can deepen our understanding
of our own faiths.
The souls I encounter
struggle with the same eter-
nal themes, regardless of
their religion: the meaning to
one’s existence; coping with
loss; eschatology; and suffer-
ing, whether attributable to
humans or God.
Mr. Carpenter and an in-
Seattle’s Wage Mandate Kills Restaurants
By Simone Barron
T
Seattle
his city’s minimum
wage is rising to $16.39
an hour on Jan. 1. In-
stead of receiving a bigger
paycheck, I’m left without
any pay at all due to the pol-
icy change. That’s because
the restaurant where I’ve
worked for six years is clos-
ing as a consequence of the
city’s harmful minimum-wage
experiment.
I work for Tom Douglas,
one of the best-known restau-
rateurs in Seattle. Mr. Douglas
is in many ways responsible
for the city’s reputation as a
foodie paradise, and he re-
cently celebrated his 30th an-
niversary in business. He’s a
great boss, and his employees
tend to stay at the company
for a long time.
But being an established
chef and a good employer
doesn’t save you from the
burden of a sharp minimum-
wage increase, up 73% from
$9.47 in 2015. For large-scale
OPINION
ate, doesn’t make things up,
doesn’t sell baloney.” The duo
felt “obligated” to report this
“national-security threat” to
the FBI. The media would later
assert that Mr. Steele had
proved a valuable source to
the FBI in the past; many
claimed the FBI corroborated
the dossier.
Now Mr. Horowitz has ex-
posed the many fictions. His
report notes that Mr. Steele
was hired from the start to
find Trump-Russia collusion.
Mr. Steele told the inspector
general that Mr. Simpson
asked him in May 2016 to de-
termine “whether there were
any ties between the Russian
government and Trump and
his campaign” and “whether
Russia was trying to achieve a
particular election outcome.”
The timing is notable: Mr.
Simpson was talking about
collusion months before the
FBI was—and even before Mr.
Steele reported it to him.
The report notes that the
FBI didn’t bother to confirm
any of Mr. Steele’s explosive
claims before presenting them
to the Foreign Intelligence
Surveillance Court in October
2016 as a reason to surveil Mr.
Page. The bureau also assured
the court that Mr. Steele was a
“reliable” source, whose prior
reporting had been “corrobo-
rated and used in criminal
proceedings.”
Yet even as the FBI pre-
pared the warrant application,
its “reliable” source was work-
ing with Mr. Simpson to turn
their FBI plant into political
gold—briefing reporters, try-
ing to gin up an October sur-
prise against Mr. Trump. The
inspector general’s report says
Mr. Steele grew frustrated
that “the U.S. government had
the Old Testament and Juda-
ism is an important way to
understand Jesus better. Af-
ter all, he was born a Jew. He
lived his entire life as a Jew.
He sermonized to Jews and
died a Jew. I benefit too from
the questions, challenges and
insights of my Christian
brothers and sisters. When
they ask me about the Torah
and Judaism, I have to think
more deeply about my own
religious beliefs.
I have a synagogue,
but I also teach,
counsel and preach
for local Christians.
As a Jew, I have a deep
love for and admiration of
Christianity. I identify with
Jesus’ protests against mech-
anized, nascent rabbinic prac-
tice, and the well-established
priestly cult of his day. Jesus
knew what many committed
Jews have long known: Rab-
binic law runs the risk of be-
coming an end unto itself.
Halacha, the Hebrew term for
Jewish law, doesn’t directly
translate to “law.” It means
“way” or “path.”
Unfortunately for too many
Jews, Halacha became a
veil—an intermediary—be-
tween the individual and God.
employers like Mr. Douglas,
there’s no separate rate for
workers who earn tips. In
Washington and a handful of
other states, tips aren’t
counted as income earned on
the job. That means restaura-
teurs are expected to pay
servers like me the full mini-
mum wage in addition to our
considerable tip income.
The legal minimum
is going to $16.39
an hour, while my
pay drops to zero.
When rent is too high, la-
bor costs too much, and cus-
tomers don’t want to pay $40
for a roast-chicken entree, the
only way for many operators
to ease the pain is to close.
So now, after six years
working at Mr. Douglas’s res-
taurant Tanakasan, I need to
find a new work home. My
first thought was to go back
not announced that the FBI
was investigating” the candi-
date. So on Oct. 31 he outed
himself and the FBI’s “sub-
stantial inquiry” in a Mother
Jones interview. The inspector
general’s report says Mr.
Simpson described this as his
“Hail Mary attempt.”
Only after Mr. Steele ex-
posed the FBI’s investigation
did the bureau fire him and
begin its overdue diligence. In
November and December
2016, the FBI sent teams to
talk with people who’d worked
with Mr. Steele professionally.
Christopher Steele
has little credibility
left after the inspector
general’s report.
They were told he’d held only
a “moderately senior” position
at MI6 and that he “demon-
strates lack of self-aware-
ness,” was “prone to rash
judgments,” and “didn’t al-
ways exercise great judg-
ment.” Former FBI agent Peter
Strzok acknowledged that Mr.
Steele was the type to “follow
the shiny object.” Just the sort
of guy you’d trust to dig up ac-
cusations of treason against a
presidential nominee.
A source-validation review
found that Mr. Steele’s prior
work had only ever been “min-
imally corroborated” and
never used in a criminal pro-
ceeding. The FBI discovered
its guy worked for an attorney
who represented a Russian oli-
garch. It tracked down the
supersleuth’s sources, in par-
ticular his primary source who
provided the allegations
rinth of casuistic hairsplitting
debate. Great rabbinic minds
often have been diverted
away from timeless moral is-
sues only to rule on the su-
perficial, like whether alumi-
num foil or bottled water is
kosher.
My time at Brentwood
Presbyterian also has made
me reflect on the decline of
Christian affiliation in the
U.S. Christianity has become
increasingly marginalized
alongside Judaism.
Only 45% of Christians at-
tend church at least once a
month, down from 52% a de-
cade ago, according to an Oc-
tober Pew Research Center
report. And the future may
be even bleaker for U.S.
Christianity. Today Christians
comprise 65% of the Ameri-
can adult population, down
from 77% in 2009. Worse yet,
the “nones,” or those who ha-
ven’t any religious identity,
make up more than a quarter
of the population, up from
17% only 10 years ago. Less
than half of millennials iden-
tify as Christian. Some 40%
are unaffiliated.
I pray this trend reverses
and Christianity begins to
thrive again. The adage “a
rising tide lifts all boats” isn’t
limited to economics. Histori-
cally Judaism gave form to
Christianity. A revitalized
Christianity can help invigo-
rate contemporary Judaism.
to Sitka & Spruce, a restau-
rant where I had once
worked. (I previously had to
take on a second job there af-
ter the rising minimum wage
forced Tanakasan to adopt a
no-tipping payment model,
drastically reducing my in-
come.)
As it turns out, I can’t re-
turn to Sitka & Spruce. Its
James Beard Award-winning
owner, Matt Dillon, is closing
Sitka after 14 years, defeated
by the one-two punch of ris-
ing rents and labor costs.
As a worker, you’re at-
tracted to restaurateurs like
Messrs. Douglas and Dillon
because they offer job secu-
rity and you know you’ll
make money. That’s no longer
the case here with a high
minimum wage that ignores
tip income. I often hear peo-
ple in Seattle lament that it’s
becoming “more corporate.”
The truth is that the city has
made it nearly impossible for
many small businesses to
survive.
Mr. Douglas is trying to
against Mr. Page in the FISA
application. This primary
source said “he/she never ex-
pected” Mr. Steele to present
their discussions as “facts”
since there was “no proof”
and it was “hearsay,” the kind
of “conversation that [he/she]
had with friends over beers.”
The source said that Mr.
Steele had in any event “mis-
stated or exaggerated” state-
ments and the source’s access
to Russian officials.
The Justice Department
was similarly unimpressed
with Fusion’s work product.
Official Bruce Ohr told the in-
spector general that Mr. Simp-
son over the years would call
with tips on Russian crime fig-
ures, but since most of it
didn’t prove “actionable,” he
“did not do anything with it
and did not try to introduce
Simpson to the FBI.” Ouch.
With quality like this, it’s
no wonder the FBI’s strenuous
efforts to corroborate the dos-
sier proved a bust—as the in-
spector general has confirmed.
None of the allegations pro-
vided to the FISA court were
validated. Others—such as
Trump attorney Michael Co-
hen’s alleged trip to Prague—
were proved “not true.” Over-
all, “the limited information
that was corroborated related
to time, location, and title in-
formation, much of which was
publicly available.” The dos-
sier did at least get Carter
Page’s job description right.
The findings overall are a
warning to a red-faced press
corps and FBI: Beware oppo
researchers who offer noble
intentions and fantastical
claims. Sometimes they’re just
oppo researchers. And poor
ones at that.
Write to kim@wsj.com.
their tradition, asking and
struggling with timeless
questions, so too will Jews
return to theirs. Judaism
never has grown out of a
vacuum.
Only religion can provide
answers to life’s most vexing
and critical questions. Chief
among them is whether God
exists. This is foundational to
issues that wrestle with ulti-
mate meaning, afterlife, mo-
rality, human nature, holiness
and compassion. When reli-
gious institutions lose sight
of these timeless questions,
they run the risk of becoming
outdated and irrelevant.
I hope the good reverend
at Brentwood Presbyterian
started a trend by inviting an
ordained rabbi to help serve
his spiritual community for a
year. Our theological differ-
ences are eclipsed by the val-
ues we share and our ability
to learn from each other.
Synagogues ought to re-
ciprocate and invite priests
and ministers to serve their
congregants as pastoral asso-
ciates. One can only hope
that such Jewish-Christian
amity and dialogue will help
usher in the Messianic age,
an age both our faiths yearn
for.
Mr. Gotlieb is the rabbi of
Kehillat Ma’arav, the West-
side Congregation, in Santa
Monica, Calif.
find a role for my co-workers
and me at another restaurant
in his group, but I’ve started
applying for other open posi-
tions around town. I landed
an interview at a restaurant
called Super Bueno, owned by
another established chef,
Ethan Stowell. Before I could
even confirm the interview,
Mr. Stowell announced that he
will close down Super Bueno
at the end of the year. He’s
also closing or restructuring
two other restaurants.
I’ve lived in this city for
almost 20 years, supporting
my family thanks to the full-
service-restaurant industry.
Today I’m struggling because
of a policy meant to help me.
I’m proudly progressive in
my politics, but my experi-
ence shows that progressives
should reconsider minimum-
wage laws that hurt the very
workers they’re trying to
protect.
Ms. Barron is a restaurant
worker and co-founder of the
Full Service Workers Alliance.
Friday, December 13, 2019 | A15
BOOKSHELF | By Stephen M. Silverman
A Day in the
Park With Walt
Disney’s Land
By Richard Snow
(Scribner, 408 pages, $30)
A
s understatements go, this one’s a doozy. Its source
was Roy Disney, the less heralded, less handsome
and—as gleaned from Richard Snow’s richly engaging
“Disney’s Land”—less headstrong brother of Walt Disney.
Since 1923, Roy had been the business brains of the Disney
company was no stranger to his kid brother’s “screwy ideas.”
But when he was informed after the war that his sibling had
been, over his objections, slyly seeking funds to develop his
own amusement park, Roy’s response was: “Junior’s got his
hand in the cookie jar again.”
It doesn’t take a sorcerer to know that the tale of Disney-
land has a happy ending. Mr. Snow, the former editor of
American Heritage magazine and the author of several books
of American history, provides his own spoiler with the
subtitle, “Walt Disney and the Invention of the Amusement
Park That Changed the World.” But when Roy first happened
upon his brother’s maneuvering, amusement parks were
passé at best, crime-ridden at worst and financial sinkholes
at their core. Walt, having hired the Stanford Research
Institute for a feasibility
study, was told that he
would fail if his park didn’t
include such proven winners
as a Ferris wheel, a roller
coaster and games of chance—
none of which Walt wanted
cluttering his dreamscape.
Joining the chorus of dissent
was Walt’s wife, Lillian. She had
tolerated her hobbyist-husband
taking over her backyard rose
garden with his steam locomo-
tive, but she “raised the dickens”
(Walt’s words) when her perenni-
ally boyish 52-year-old spouse told her
that he had sold their desert vacation home
and borrowed $250,000 against his life insurance
so that he could seed his plans for the sort of enterprise that
looked to be, as she put it, “not fun at all for grown-ups.”
So what happened? “If you want to know the secret of
Walt Disney’s success,” Disney animator Ward Kimball
observed, “it’s that he never tried to make money.” To judge
by Mr. Snow’s entertaining chronicle, Walt himself didn’t
quite know what his great endeavor should be. “I just want it
to look like nothing else in the world,” he told Herb Ryman,
a Hollywood art director and Disney company illustrator.
“Fueled by milk shakes and tuna fish sandwiches,” Mr. Snow
writes, the two spent a weekend conjuring a map of Disney-
land: It featured five zones dedicated to America’s past,
present and future and wound up serving as the blueprint
for the park, which would occupy 160 acres 30 miles south
of downtown Los Angeles, in a backwater called Anaheim.
It was Walt’s idea to tap a broadcast network into funding
his playground. “I want your television show,” NBC’s David
Sarnoff told Roy, “but why the hell do we have to take that
damned amusement park?” Sarnoff didn’t. Likewise, CBS’s
William Paley. That left distant No. 3 network head Leonard
Goldenson, whose ABC desperately needed name-brand
programming. In addition to paying Walt for his weekly
anthology program, to be called “Disneyland,” Goldenson
guaranteed $4.5 million in construction loans. (The park’s
ultimate price tag was $17 million—about $160 million
today—many times more than Walt’s original estimate.)
The publisher of Disney comic books contributed an
additional $1 million. By the end of negotiations, Mr. Snow
tells us, the Disney company and ABC each owned slightly
more than a third of the park, Western Printing owned 14%,
and Walt himself 17%. The creator of Mickey Mouse also held
an option “to buy out the other investors after two years.”
(By 1960, Walt Disney Productions owned all of Disneyland.)
Researchers told Disney that his amusement park
would fail if it didn’t have a Ferris wheel and a
roller coaster. He had something else in mind.
“I don’t think that I ever had a complete set of plans of
anything I undertook at Disneyland,” said Joe Fowler, a
retired Navy rear admiral installed as the construction boss
of the park. The problem, Mr. Snow notes, is that nothing of
its kind had ever been tried before, so it was a project in a
constant state of creative flux. And there were delays: All it
took to trigger one was Walt’s taking a walk through the site
and determining that a certain tree belonged elsewhere on
the property. Along with that came rain, testy arguments
between Walt and Roy, mangled aluminum bumpers on the
miniature cars, a plumbers’ strike, and unionization (the
Teamsters determined that those who would see customers
on and off rides should join up). As the promised date to air
the opening live on ABC loomed, the overall situation was,
to use Mr. Snow’s word, “pandemonium.”
On July 17, 1955, Disneyland did indeed open. The first
day brought a near-devastating combination of heat and
mechanical malfunctions, but within two months the so-called
Happiest Place on Earth had welcomed its one-millionth
visitor. Magically, that cookie jar had yielded gold. Today, in
addition to the theme parks in Anaheim and Orlando, Fla.,
there are Disney parks in Tokyo, Paris, Hong Kong and
Shanghai. For fiscal 2019, they contributed $26.2 billion to
the coffers of the Burbank, Calif.-based Walt Disney Co.
Before the verdict was in, Lillian had come around. Four
days ahead of Disneyland’s opening, she grabbed a broom
and helped sweep debris off the deck of the Mark Twain
riverboat. And the relationship between Walt and his older
brother? Roy, Mr. Snow acknowledges, “never lost his calm
understanding that the company’s prosperity rested not on
the rock of conventional business practices, but on the
churning, extravagant, perfectionist imagination of his
younger brother.” For Walt’s part, he is quoted saying in
1957, just as Disneyland was making him rich, that “if it
hadn’t been for my big brother, I swear I’d’ve been in jail
several times for checks bouncing.” It is personal nuggets
such as these that show Mr. Snow to be as solid a storyteller
as Walt Disney himself.
Mr. Silverman is the author, most recently, of “The
Amusement Park: 900 Years of Thrills and Spills, and the
Dreamers and Schemers Who Built Them.”
In‘Booksof theYear’thisweekend
Ten works of fiction and nonfiction that defined 2019 •
Our columnists’ favorite mysteries, sci-fi and children’s books
• Lives of Metternich and Lucian Freud • And what Bob
Iger, Zadie Smith, Twyla Tharp and 48 others read this year
 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.

A16 | Friday, December 13, 2019 THE WALL STREET JOURNAL.

OPINION
REVIEW & OUTLOOK LETTERS TO THE EDITOR

A Tory Lead in Britain Free College Makes Sense for Those Qualified

B
ritish voters spoke again Thursday, and and lower earners more heavily, no matter what In “‘Free College for All’ Is an Ex- same, it would raise everyone’s results
by our deadline the exit polls showed he said about “taxing the rich.” periment That Has Already Failed” in the end. Also, as with subprime
(op-ed, Dec. 7), Prof. Jackson Toby lending, the recipients weren’t
that Boris Johnson’s Tories were on They also refused to be led by a radical leftist
conflates the idea of public higher ed- equipped for the journey and remedia-
their way to a substantial ma- who has winked and nodded at ucation being accessible to those who tion hasn’t been able to overcome the
jority. If the results hold, the Boris Johnson benefits rampant anti-Semitism within qualify academically and the idea that huge skills gap they faced, leading
Conservatives will have won from taking voters at the Labour Party. Labour now qualifications should be cast aside al- many students to pursue degrees that
368 of the 650 seats in Parlia- can jettison Mr. Corbyn and together. Free education, should we didn’t add value. University adminis-
ment, their biggest majority their word on Brexit. his radical cronies and offer ever be in position truly to offer it, in trators have been happy to accommo-
since the sainted Margaret voters a more plausible cen- no way constrains an institution’s date these new students to keep the
Thatcher era. trist alternative. need to ensure that students qualify seats and parking lots full. Society is
This paves the way for Britain’s divorce Labour’s thumping by Britain’s middle class for admission. then faced with new college grads (or
from the European Union that voters first is also a warning to American Democrats who The differences between the cam- dropouts) with no useful career path
backed in June 2016. That goal has been sty- think left-wing populism is the way to defeat pus I entered as an assistant professor and burdensome debt, not to mention
and the campus I now lead as presi- the cost to the student psyche. Free
mied by feckless leadership and elite opposi- Donald Trump’s right-wing populism. Corbynism
dent are vast—but have absolutely college has already been with us in
tion in Parliament, but Mr. Johnson promised left the middle of British politics to be filled by nothing to do with how much we many ways, and eliminating tuition is
to “get Brexit done” after becoming Prime Mr. Johnson’s Tories. A Democratic Party that charge in tuition. We have demon- just the latest gimmick.
Minister this year and voters seem to have re- veers to the Bernie Sanders or Elizabeth Warren strated that broadening access does TIMOTHY B. MICHAEL
warded him for it. left could let Mr. Trump win again by frightening not mean admitting unqualified stu- Executive director, Financial
The Tories seemed likely to gain seats even suburban voters who dislike the President per- dents. Our commitment to access re- Education Association
in parts of the country that have backed the op- sonally but don’t want socialism. quires us to seek out qualification and Houston
position Labour Party for decades. This more While British voters are rejecting Cor- talent where it has been overlooked.
than compensated for the departure elsewhere bynism, they are less clear about what they We have learned that students with Increasing paths toward a free col-
of voters who abandoned Mr. Johnson’s Conser- want beyond Brexit. The weakness of Mr. John- vast potential do not always arrive on lege education isn’t an issue, it’s an
vatives in favor of pro-EU parties such as the son’s campaign was to hesitate from offering campus obviously qualified to join an opportunity. Mr. Toby writes as if the
honors program—but we have set opportunity is binary—free education
center-left Liberal Democrats. a bolder pro-market, pro-growth agenda for ourselves the goal of teaching to those or no education. While for prospective
This vindicates Mr. Johnson’s gamble on fear of alienating left-leaning former Labour qualifications. CCNY—and so many students the situation might be that
throwing the Brexit question back to the voters voters who support Brexit. His main offer to CUNY schools—achieve nation-leading way, it isn’t for the optimists who’d
by seeking a mandate for his revised deal with voters was a package of modest tax tweaks and social-mobility figures by carefully like to improve our education system.
Brussels. Plenty of anti-Brexit politicians and vague promises to negotiate free-trade deals identifying and developing true poten- I agree that college might not be for
commentators have argued since the 2016 ref- around the world after Brexit, coupled with tial, rather than by narrowing admis- everyone. However, college should be
erendum that the voters had been misinformed modest spending increases on public services sions to a sliver of the population. available for everyone who adequately
about Brexit, or hadn’t fully thought through such as police and health care. This is hard work. Genuine public completed early schooling. Instead of
the issue, or don’t want the specific type of That helped Mr. Johnson keep the focus on education in a still-unfair society de- taking time to criticize free-educa-
Brexit Mr. Johnson proposes, or have changed Brexit and on how out of touch Mr. Corbyn is, mands that we distinguish poverty of tion’s shortcomings, why don’t we
means from poverty of talent—some- look for ways to gradually help more
their minds. Mr. Johnson took voters at their but it will make the task of post-Brexit eco-
thing we do too infrequently. But students who have the drive and re-
word that they wanted Brexit then and still nomic reform more difficult. His challenge will what treasures await those who see cord of achievement but require a
want it now, and he was willing to buck the Lon- be to persuade Leave voters that Britain can and act on that distinction. It’s hard cheaper path?
don intelligentsia in the bargain. best reap the dividends of independence from to imagine any public investment COREY RUTKIN
The large Tory gains also offer hope of re- the EU with a range of domestic economic over- making more dynamic or immediate Schenectady, N.Y.
storing some semblance of sanity to British pol- hauls to taxation and regulation. returns than that made in public edu-
itics. The anti-Brexit resistance should now ad- One early place to start would be negotiating cation, both for individual students Jackson Toby is spot on in his as-
mit they have lost the argument. Instead of a trade deal with the U.S. Mr. Trump, the Anglo- and in the construction of a more fair sessment of how students value un-
endlessly and tediously relitigating the 2016 phile, likes the idea. Mr. Johnson should leap and prosperous society. earned college admission. The judge-
referendum, the focus can shift to Britain’s fu- to get it done while he has maximum political VINCE BOUDREAU ment of value for future potential
ture outside the EU. capital and Mr. Trump is looking for political President, City College of New York employers also needs to be part of the
New York discussion of college for all. The value
On that score, too, this vote seems decisive. and economic victories before November’s U.S.
of bachelor’s and associate degrees
Beyond Brexit, voters faced an economic-policy election. I suggest that the last couple of de- will decline in proportion to the size
choice between Mr. Johnson’s generally pro- i i i cades of easy loans and admissions of the newly minted army of degree
business pitch and the aggressive socialism of We should also thank British voters for their was done to create “college for all.” holders. The law of supply and de-
Labour leader Jeremy Corbyn. The exit polls show of democratic vigor. Western democracies As with subprime lending, the big mand never takes a semester off.
suggest Labour has won its lowest number of haven’t been functioning well of late, Westmin- idea was that if we could only change SCOTT EPPELMAN
seats since the 1930s. ster included. Mr. Johnson’s leadership, and his the outcomes for everyone to be the Coppell, Texas
Voters rejected Mr. Corbyn’s promise—or show of respect for Brexit voters, is proving
threat—to nationalize large segments of the that democracies can be moved to make a deci-
U.K. economy such as railways, broadband and sive choice. Mr. Johnson will have to reward
the post office. They figured out that he’d be that faith as he governs in a post-Brexit era, but You Don’t Build Kids’ Characters With Lies
able to pay for that and an expansion of social- his apparent victory offers a broader lesson for As a human being and as a psychi- ficial effects of childhood member-
welfare benefits only by taxing the middle class democratic leaders in this populist era. atrist, I am appalled by Erica ship in the Young Pioneers?
Komisar’s “Don’t Believe in God? Lie Atheism doesn’t imply nihilism.
to Your Children” (Houses of Wor- There are many profound ethical tra-
A Nuclear Milestone for Climate ship, Dec. 6). Lying to children is ditions that don’t require belief in a

Y
ou probably haven’t heard about a re-
cent regulatory decision that will re-
duce carbon emissions because it
doesn’t follow the green template of control-
ling private industry and suppressing eco-
nomic growth.
Last week the Nuclear Regulatory Commis-
sion (NRC) for the first time extended a nuclear
plant’s license so it can operate for 80 years. The
decision for the Turkey Point reactors in south
Florida could encourage other plant owners to
apply for renewals and extend the viability of the
leading carbon-free energy source.
A majority of the 58 nuclear plants now
supplying power to U.S. homes and businesses
were built in the 1970s and 1980s, when they
were licensed for 40 years. Most plants have
applied for and received 20-year extensions to
bring their life spans to 60 years. Yet antinu-
clear activists use the license renewal periods
to pressure plants to close, and until the Tur-
key Point decision it was an open question
whether the NRC would approve second 20-
year extensions.
The federal go-ahead for Turkey Point comes
at an important time for America’s maturing
nuclear fleet. The 2010s saw a wave of plant
Warren’s Economic Illusions
closures, and according to the Nuclear Energy
Institute half of U.S. plants would shut down by
2040 without a second extension. Nine are
seeking one so far.
If the odds for approval looked long, fewer
U.S. power companies would take their
chances with the costly renewal process, espe-
cially given pressure on the industry from
cheap natural gas and subsidized wind and so-
lar in many states. More plants would close
and much of that energy would instead be gen-
erated by fossil fuels.
The Turkey Point decision doesn’t mean all
future applications will pass the NRC’s safety
and environmental reviews, but it shows they
will be considered. Reactors can now operate
safely much longer than originally thought with
appropriate upgrades.
Because of the steep regulatory obstacles
to building new nuclear plants, continued op-
eration of existing plants is the best bet for
keeping nuclear from declining below its cur-
rent 19% share of U.S. electric power. Envi-
ronmentalists who say the climate is an exis-
tential crisis should be the most pleased at
this indication that nuclear energy will stay
on the grid.
harmful. Your children may not al-
ways figure out the exact truth be-
hind your lies, but they will almost
always sense that something isn’t
right. With the best of intentions, my
own parents, who were lapsed Catho-
lics, lied to me exactly as advised by
Ms. Komisar. Outcome: I rejected reli-
gion as fishy as early as age 8 but felt
compelled to keep my atheism a se-
cret for years. I got so good at telling
my Sunday school teachers what they
wanted to hear that a priest once
showed up at my house to tell my fa-
ther that I had a vocation. A tendency
to mistrust authority figures per-
sisted for decades and interfered with
my ability to bond with potential
mentors at school and work.
Participation in any kind of sup-
portive community group is good for
children; the beliefs espoused by such
groups are probably relatively unim-
portant. Can anyone seriously believe
that research, had it been carried out
in the former communist bloc, would
have failed to demonstrate the bene-
Forced Fire Insurance Is a
Terrible, Destructive Idea
Although the wildfire situation in
California is tragic, misguided efforts
supreme being; a partial list includes
Buddhism, Jainism, Taoism, Confu-
cianism, Stoicism, Epicureanism and
secular humanism. It is absurd to as-
sume that parents belonging to these
nontheistic traditions are uniformly
unable to raise well-adjusted children
or to comfort those children at times
of loss.
R. STREETT, M.D.
Pleasant Hill, Calif.
Remember C.S. Lewis’s advice. He
suggested we act lovingly and gen-
erously, as though we held to some-
thing higher, even if we weren’t
sure about our faith and though it
might be difficult at first. Lewis
wrote that the existence of the de-
sires humans have always had, in-
cluding noble, loving ones, are evi-
dence of a noble creator.
If these concepts are combined
with Ms. Komisar’s, perhaps her ad-
vice is not that far off.
KEN VALERO
Littleton, Colo.
Progressive Finance Pooling
Regarding your editorial “Kamala
Harris Returns to the Senate” (Dec.
4): Sen. Kamala Harris and her (for-
mer) Democratic presidential candi-

E
to help homeowners by compelling
date rivals stand unified in their
lizabeth Warren has been justly criti- tried to find a way to finance Medicare for All, insurers to write policies isn’t the so-
support of income redistribution
cized for the magical math in her Medi- she raised it to 6%. This would compound the in- lution (“California Restricts Home In-
and economic equality for all Ameri-
care for All proposal. That health plan centives to avoid the tax. surers,” U.S. News, Dec. 6). Insurance
cans. It seems fair that they adapt
would cost perhaps $34 tril- On Thursday the analysts at rates should reflect the level of risk,
this ideology to campaign funding
lion, according to outside esti- A new analysis says her the Penn Wharton Budget which is obviously quite high in Cali-
by agreeing to pool all contributions
fornia. When insurers can’t price the
mates. But Ms. Warren says wealth tax would fall Model pitched in their two raised by their individual efforts and
risk, they are understandably reluc-
the true figure is only—alaka- cents. According to their dy- tant to write policies. Compelling
share them equally.
zam!—$20.5 trillion. short—by $1.5 trillion. namic estimate, which takes them to do so, particularly at “afford-
ROBERT STEWART
Her wealth tax is the same account of macroeconomic ef- Mancos, Colo.
able” prices, sends the signal that
way, as a fiscal fact check this fects, Ms. Warren’s tax would maybe the risk isn’t so great. This is
week demonstrates. Ms. Warren wants to tax bring in only $2.3 trillion over 10 years. That’s really a driving factor in what has
the net worth of affluent Americans 2% a year almost $1.5 trillion less than Ms. Warren is now become a perpetual disaster. We Pepper ...
on assets above $50 million, and 6% on billion- counting on. only have to look at the National
aires. She says it would raise $3.75 trillion over The model also says the economy under Ms. Flood Insurance Program to see
And Salt
10 years. Warren’s wealth tax would be about 1% to 2% where this policy leads. Instead of THE WALL STREET JOURNAL

Her campaign cites a letter from two econo- smaller in 2050, compared with the baseline, helping vulnerable homeowners re-
cover from flooding as envisioned, it
mists at UC Berkeley, Emmanuel Saez and Ga- though the exact outcome depends on whether
has enticed millions of people to
briel Zucman. They say that because Ms. War- Congress spent the revenue in ways that lifted move to vulnerable coastal locations
ren’s proposed tax doesn’t have any loopholes, productivity. Meantime, average hourly wages because the cost of those decisions is
“the avoidance/evasion response is likely to be in 2050, “including wages earned by households now borne by everyone, regardless of
small.” Assume 15%, they continue, pointing to not directly subject to the wealth tax, would fall where they choose to live. Following
studies of wealth taxes in Scandinavia, Colombia between 0.8 and 2.3 percent due to the reduction a similar path with wildfires is both
and Switzerland. in private capital formation.” imprudent and immoral.
One economist who takes issue with these as- It’s not that the Penn Wharton model is pre- RICHARD G. LITTLE
sumptions is Democrat Larry Summers. The cur- cisely accurate. As Russ Roberts likes to say, you Williamsburg, Va.
rent estate tax is nowhere near so efficient, he know macroeconomists have a sense of humor
and a co-author, Natasha Sarin, have said. They because their estimates include decimal points. Letters intended for publication should
argue that Messrs. Saez and Zucman don’t seri- Still, Ms. Warren’s promises are wildly unrealis- be addressed to: The Editor, 1211 Avenue
of the Americas, New York, NY 10036,
ously account for tax avoidance, other than by tic. She’ll pay for a $20.5 trillion health program, or emailed to wsj.ltrs@wsj.com. Please
“reducing a naive calculation by 15 percent.” which actually costs $34 trillion, by imposing a include your city and state. All letters
Making matters worse, Ms. Warren subse- $3.75 trillion wealth tax, which actually raises are subject to editing, and unpublished “She says she’s packing for
quently doubled her proposed tax rate on billion- $2.3 trillion. The real magic trick would be get- letters can be neither acknowledged nor a business trip, but I’m starting
returned.
aires. At first it was going to be 3%. But as she ting voters to believe that. to think there might be another dog.”
 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.
THE WALL STREET JOURNAL.
How to Pay the Wealth Tax: Sell Everything
By Hank Adler
And Madison Spach
E
lizabeth Warren’s proposed
wealth tax—an annual levy
on the total value of one’s
assets, not income—has
drawn a lot of attention.
The senator’s claim that her proposal
would cost “ultramillionaires” only
an annual 2% and billionaires an an-
nual 6% wildly understates the truth.
Wealthy people don’t maintain bank
accounts with millions or billions of
dollars of liquid cash; they invest
their assets. Those hit with the
wealth tax would have to sell assets
each year to pay it, subjecting them
to income tax as well. The actual cost
would often be several times greater
than 2% or 6%.
Investors could pay twice
as much in capital gains
just to raise the funds
for Ms. Warren’s levy.
Ms. Warren has proposed a dra-
matic increase in the federal capital-
gains tax rate, along with taxing cur-
rent appreciation of asset values for
wealthy taxpayers. She has proposed
raising the current top long-term
capital-gains rate from 20% to 39.6%,
leaving in place the current addi-
tional investment tax of 3.8%, and
assessing an additional 14.8% tax for
taxpayers with net investment in-
come over $400,000. That adds up
to a total federal tax rate of 58.2%,
more than double the current maxi-
mum 23.8% on long-term capital
Modi Courts Chaos by Snubbing Persecuted Muslims
Narendra Modi’s
government could
be setting Hindu-
majority India on a
collision course with
its 172 million Mus-
lims. The latest
EAST IS
flashpoint came
EAST
Wednesday, when
By Sadanand
Parliament passed a
Dhume
law establishing the
country’s first reli-
gious test for citizenship.
On its face, the law merely paves
the way for persecuted religious mi-
norities from Pakistan, Afghanistan
and Bangladesh to fast-track claims
to Indian citizenship. But by point-
edly excluding Islam from the faiths
whose followers will receive special
consideration—Hinduism, Buddhism,
Sikhism, Jainism, Zoroastrianism
and Christianity—the government
signals that Muslim migrants aren’t
welcome in India.
Many greeted the law with alarm.
On Twitter Pratap Bhanu Mehta, a
prominent Indian political scientist,
called it “a giant step to officially
convert a constitutional democracy
into an unconstitutional ethnoc-
racy.” The U.S. House Foreign Affairs
Committee warned that “any reli-
gious test for citizenship under-
mines this most basic democratic te-
By Michael Taube
A
Toronto
ndrew Scheer, leader of Can-
ada’s Conservative Party, should
have been celebrating. His party
gained 26 seats in the Oct. 21 federal
election, won a plurality of the nation-
wide popular vote, and reduced Prime
Minister Justin Trudeau’s Liberals to
a minority government.
Yet 52 days later, Mr. Scheer an-
nounced he would step down as party
leader. He decided to put “my party
first and my family first,” according
to his Thursday statement in Parlia-
ment, and wanted to ensure the next
Conservative leader would be able to
give 100% to the job ahead.
Mr. Scheer’s fiercest political rival
turned out not to be the Liberal Party
but his fellow Conservatives. For
weeks, they had fumed about a
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gains. For a California taxpayer who
would also be required to pay the
state’s 13.3% income tax, the total
state and federal income taxes to
raise the funds to pay Ms. Warren’s
6% federal wealth tax would be
71.5%.
There’s another complication: In-
vestors and business owners often
take on third-party debt to pursue
their objectives, using their assets as
collateral to secure the debt. When
owners sell these encumbered as-
sets, they have a primary obligation
to pay back the debt secured by the
assets sold. Only after this important
first step would taxpayers turn to
paying taxes—first, federal and state
income taxes, then the wealth tax.
Note that in many cases a sale of en-
cumbered assets would not yield suf-
ficient proceeds to pay the third-
party debt, state and federal income
taxes and the wealth tax.
These taxes quickly add up. Con-
sider a hypothetical founder of a
California company who has to pay a
6% tax on wealth in excess of $1 bil-
lion. The founder is exclusive owner
of a company with a fair market
value of $6 billion. (For simplicity’s
sake, let’s ignore the 2% tax on
wealth between $50 million and $1
billion. Our analysis will therefore
somewhat understate the total cost.)
The founder’s wealth in excess of $1
billion would initially trigger a $300
million wealth tax. To raise the $300
million, he would need to sell $1.053
billion (17.6%) of the company to pay
Ms. Warren’s 58.2% federal capital-
gains tax, California’s 13.3% income
tax, and the 6% wealth tax. (The
$1.053 billion sale price minus $613
million in federal capital-gains taxes,
minus $140 million of California in-
net,” religious pluralism. Human
Rights Watch said the law “discrimi-
nates against Muslims.”
For the law’s defenders, it’s much
ado about not very much. They note
that the fast-track provisions apply
only to people who arrived in India
before 2015. The law neither changes
the rights of citizens nor removes
other routes to citizenship, available
to people of any faith. Proponents
say it makes no sense that officially
Islamic Afghanistan and Pakistan or
Muslim-majority Bangladesh would
religiously persecute Muslims. They
insist India owes a special debt to
Hindus and Sikhs cruelly stranded in
Muslim-majority lands by the acci-
dent of Partition in 1947, which
carved out a separate homeland for
Muslims from British India.
These last defenses are disingenu-
ous. Afghanistan was never part of
British India. If the law’s purpose is
to address Partition-created prob-
lems, including it would make no
sense. And anyone with a passing fa-
miliarity with South Asia could tell
you that Pakistan’s Ahmadiyya and
Shia Hazara Muslims face unspeak-
able atrocities. If India’s law is
driven by compassion, as its propo-
nents claim, then why does it leave
out some of the most violently per-
secuted religious minorities in the
The Canadian Conservative Crack-Up
missed opportunity to regain power.
Mr. Trudeau’s reputation had col-
lapsed thanks to several controver-
sies, including a corruption scandal
known as the SNC-Lavalin affair and
three incidents of wearing blackface
or other dark makeup. The prime
minister was vulnerable, and voters
seemed to need only a solid alterna-
tive. Instead, Conservatives watched
Mr. Scheer fumble questions about
his own background, including his
work in the insurance industry and
his dual Canadian-U.S. citizenship,
and get dragged down by the media
and political opponents for his social
conservative values.
Mr. Scheer is Catholic and sup-
ports religious freedom, family val-
ues and the rights of the unborn.
These views are well within the
mainstream of American conserva-
tism, but Mr. Scheer tends to be less
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Chief Executive Officer and Publisher
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OPINION
Elizabeth Warren in Charleston, S.C., Dec. 8.
come taxes leaves $300 million.)
Including the wealth tax on the
first billion dollars, at the end of five
years, sales of roughly $3.69 billion
of the company would be required.
The founder would have paid 61% of
his net worth in taxes, losing most
of the business.
Ms. Warren’s revenue estimates
for the wealth tax don’t include the
additional income taxes that would
be collected on assets sold. In the
initial years, income taxes collected
could easily exceed the direct wealth
tax. However, the wealth tax would
kill the golden goose, and any pro-
grams anticipating a continuing
stream of tax revenues would be un-
sustainable.
Further, the combination of taxes
would hit people with identical
wealth very differently. Ms. Warren
determines wealth by subtracting
third-party debt from the fair mar-
region? The government easily could
have extended a welcome to perse-
cuted groups without thumbing its
nose at Muslims.
For now, those hit hardest by the
law are Muslim migrants living in In-
dia’s northeastern state of Assam.
Earlier this year, the Supreme Court
made 1.9 million of them effectively
stateless by mandating the National
Register for Citizens—a list of those
A new citizenship law gives
‘special consideration’ to
most every other religious
minority—and Hindus.
who cannot prove that they or their
ancestors arrived in India before
1971. The citizenship law would po-
tentially allow the estimated 1.2 mil-
lion Hindus in this group to claim In-
dian citizenship, but the remaining
migrants, mostly Bengali-speaking
Muslims, face indefinite imprison-
ment in detention camps. Bangla-
desh won’t take them back.
The citizenship law adds to a
widely felt anxiety among Indian
Muslims, says Zainab Sikander, a
Delhi-based political analyst, in a
aggressive than his U.S. counterparts.
He makes a point of separating his
private views from his political ambi-
tions, and he emphasizes his respect
for Conservatives and other Canadi-
ans who disagree with him on abor-
tion, same-sex marriage and other
such issues.
Even so, he’s had a hard time eas-
ing the minds of skeptics, in part be-
cause his comments on social issues
have tended to be ambiguous. Con-
sider the following sequence: Shortly
before the election, a video surfaced
of Mr. Scheer speaking about mar-
riage in 2005. He said then that gay
couples “have many of the collateral
features of marriage, but they do not
have its inherent feature, as they can-
not commit to the natural procre-
ation of children. They cannot, there-
fore, be married.” After the media
furor, Mr. Scheer said he now accepts
Notable & Quotable: Theory
April Doss writing for the Weekly
Standard, July 27, 2018:
[House Intelligence Committee
Chairman Devin] Nunes insisted on
releasing a memo that endorsed a
new conspiracy theory about how a
Democratic administration had:
abused the [Foreign Intelligence
Surveillance Act] process by using
salacious opposition research (with
the implication that the funding
source made the information itself
suspect), incorporated that suspect
research into a FISA application,
and sent the application to the se-
cret proceedings of the FISC with-
out telling the court there could be
bias in the information. Through
this complicated string of subter-
fuges, Nunes claims, the Democrats
Friday, December 13, 2019 | A17
ties would be slaughtered by Ms.
Warren’s definition of wealth. The
combined wealth tax plus accompa-
nying income taxes on the sale of as-
sets could consume more than 100%
of net worth.
Ms. Warren has also proposed
significant increases in corporate in-
come taxes. She would return the
SARAH BLAKE MORGAN/ASSOCIATED PRESS
top rate to 35% from the current
21%. She would institute an addi-
tional 7% federal income tax for
large corporations and make other
changes to corporate taxation that
together would suffocate corporate
earnings and cash flow. Corpora-
tions’ ability to purchase new equip-
ment, hire new employees or con-
tinue research and development
would be severely constricted.
The increase in corporate tax
rates would reduce both current in-
ket value of assets but ignores the come and projected future income.
income taxes on the asset sales. In Earnings per share and individual
our example, the founder with a tax stock prices would decline along
basis of zero in his company (not un- with competitiveness of U.S. compa-
usual for a founder) would be liable nies. The wealth tax would make bil-
for $753 million of income taxes to lionaires sellers, not buyers. Stock
raise the funds necessary to pay a markets would decline dramatically,
$300 million wealth tax. If the doing lasting harm to the economy
founder had recently inherited the and pension funds.
$6 billion business, his tax basis Ms. Warren proposes a trifecta of
would be equal to the estate-tax tax increases: a confiscatory and un-
value ($6 billion) and he would pay sustainable wealth tax that does not
no income taxes on sale of shares. consider income taxes in the calcula-
The wealth tax would treat these tion of revenue, an annual capital-
two wealthy people differently. Tak- gains tax on asset appreciation at
ing into account the wealth tax on tax rates two times current capital-
the first billion dollars, the founder gains tax rates, and a massive in-
would end up with $4.88 billion crease in the corporate tax rate. In
while the heir would have finished short, an economic cataclysm.
the day with $5.68 billion. How does
that make sense? Mr. Adler is an associate profes-
Real-estate investors whose hold- sor at Chapman University. Mr.
ings have grown for decades as they Spach is a practicing attorney in
refinanced and bought more proper- Newport Beach, Calif.
phone interview. Home Minister after night rehashing medieval con-
Amit Shah has repeatedly promised flicts between Hindus and Muslims.
to extend the National Register of Passing the citizenship law isn’t
Citizens across India. If the Assam the only action the Modi govern-
experience is indicative, it will make ment has taken that has dispropor-
some of India’s most vulnerable peo- tionately hurt Muslims. In August,
ple—especially poor Muslims with- the government abruptly scrapped
out documents to prove their citi- statehood for Jammu and Kashmir
zenship—susceptible to harassment and bifurcated India’s only Muslim-
and potential disenfranchisement. majority state into two federally ad-
Ms. Sikander summarized the feeling ministered territories. Curbs on the
that’s spreading through the Muslim meat and leather industries have
community: “Because I’m a Muslim, hurt Muslim livelihoods in some
there’s a noose around my neck.” BJP-ruled states.
These fears may turn out to be The BJP can’t simply wish away
exaggerated, but they aren’t un- India’s Muslim population, the
founded. Since Mr. Modi’s election in world’s third-largest. A responsible
2014, the incidence of mob lynchings political party would work to isolate
of Muslims accused of stealing cattle the small minority of that group that
or eating beef in violation of pious are extremists and integrate ordi-
Hindu beliefs has increased. Anti- nary Muslims into the national
Muslim rhetoric accelerates career mainstream. Instead, Mr. Modi is
advancement within Mr. Modi’s marginalizing a sizable minority of
Bharatiya Janata Party. Earlier this his citizens and laying the ground-
year, the party sent to Parliament a work for long-term instability.
female Hindu ascetic accused of The new law has already set off
bomb blasts targeting Muslim civil- angry protests in Assam and other
ians. Though Muslims make up one- parts of the Northeast, mostly by lo-
seventh of India’s population, the cals fearing a Bengali Hindu influx,
BJP does not count a single Muslim requiring the government to dis-
among its 303 directly elected mem- patch troops and shut down the in-
bers of Parliament. The only Muslim ternet in some areas. The BJP’s ham-
in the cabinet is responsible for mi- fisted lawmaking isn’t solving
nority affairs. On pro-BJP television problems; it is creating ones that fu-
news channels, panelists spend night ture generations will struggle to fix.
gay marriage, but he declined to days after the vote, he was asked if
apologize. he’d reconsider his decision not to
When it was revealed that several participate in gay-pride marches. “I
Conservative candidates had previ- won’t march in parades,” he an-
ously made controversial remarks on swered, “but I will ensure that our
social issues, Mr. Scheer accepted party is as inclusive and open and
their apologies and didn’t remove that we fight for equality rights of
all Canadians.”
Such equivocation on social issues
Can the party recover its was typical of Canada’s Conservatives.
They’re not as ideologically cohesive
cohesion after failing to as the Liberals and other parties of
defeat a badly damaged the left. The party includes Red To-
ries, who are liberal on social issues
Justin Trudeau? and the welfare state, and Blue Tories,
who favor free markets and social
conservatism. Party members often
them. When the media hounded him engage in divisive debate, including
about his current positions, he didn’t over what can be debated. Last year
respond directly. His typical answer Mr. Scheer urged delegates to the
was that the issues were “closed” in party convention to keep a resolution
Canada and would stay that way if stating: “A Conservative government
he became prime minister. Three will not support any legislation to
regulate abortion.” He prevailed, but
only 53% to 47%.
Mr. Scheer was unable to survive
a political assault from the two Tory
wings. He was too conservative for
managed to pervert justice in order the Red Tories, yet some social con-
to spy on the Trump campaign. servative organizations turned
Over time, the conspiracy theory against him in frustration that he
would deepen: Since the dossier in- hadn’t gone far enough on certain
cluded information from sources in issues or was watering down his
Russia, that meant that the Hillary message.
for America campaign had colluded Now that Mr. Scheer has stepped
with Russia to provide fake infor- down, could a Red Tory emerge as
mation to Christopher Steele, who the Conservative leader? That would
slipped the fake news to the FBI, turn off Blue Tories and other right-
which then pulled the wool over leaning factions, and could lead to a
the eyes of a succession of four massive split. It would also push Ca-
FISC judges, each of whom signed nadian conservatism into the political
off on further surveillance against wilderness, which is what Mr.
Carter Page. Trudeau is banking on.
It’s an exhausting theory to con-
template, and yet one that many Mr. Taube, a Troy Media syndi-
people, fueled by conspiracy-mon- cated columnist and political com-
gering rumors on the Internet mentator, was a speechwriter for for-
about the workings of the “deep mer Canadian Prime Minister
state,” believed. Stephen Harper.
 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.

A18 | Friday, December 13, 2019 THE WALL STREET JOURNAL.

 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.
TECHNOLOGY: ‘FORTNITE’ DEVELOPER CHALLENGES GOOGLE OVER APP-STORE FEES B4
BUSINESS & FINANCE
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S&P 3168.57 À 0.86% S&P FIN À 2.00%
Return of 737 MAX Fades Into Next Year
FAA lashes Boeing for
seeking to speed
timeline; delay seen
lasting until spring
BY ANDREW TANGEL
AND ANDY PASZTOR
The global grounding of
Boeing Co.’s 737 MAX is bound
to stretch to nearly a year as
U.S. regulators chided the
plane maker for its slow deliv-
ery of information and warned
it against setting unrealistic
expectations for the jetliner’s
Grocers
Bet on Smaller
Warehouses
BY JAEWON KANG
Food retailers are making
big bets on small warehouses
to bulk up their growing deliv-
ery businesses, as supermar-
kets try different approaches
to get groceries to customers
more efficiently.
Albertsons Cos., Walmart
Inc. and other chains are build-
ing small fulfillment centers
near existing stores and cus-
tomers to quickly fill orders
placed online. More grocers
are choosing this strategy over
the larger, remote distribution
centers that Kroger Co. and
Koninklijke Ahold Delhaize
NV’s Peapod division are build-
ing to make deliveries over
wider areas.
“We have a broader assort-
ment of fresher items, and we
are closer to the customers,”
said Narayan Iyengar, senior
vice president of digital and e-
commerce at Albertsons.
The owner of the Safeway
and Jewel-Osco chains is add-
ing small fulfillment facilities
at two stores in South San
Francisco, Calif., and San Jose,
Calif., in partnership with
Takeoff Technologies Inc.,
which builds automated ware-
houses. Albertsons said it is es-
tablishing more of these
10,000-square-foot distribution
centers, which each cost about
$3 million to build.
According to Jefferies Group
Bond Analysts Clash
On Outlook for Yield
In Sign of Confusion
BY DANIEL KRUGER
Analysts are split on the di-
rection of government-bond
yields in 2020, a sign of confu-
sion about the course of the
economy and monetary policy.
Economists surveyed last
month by The Wall Street
Journal predicted that the
yield on the benchmark 10-
year Treasury note could end
next year above 3% or just
slightly higher than 1%. The
average forecast of 1.97% was
only modestly higher than
where the yield settled Thurs-
day, at 1.901%.
INSIDE
BUSINESS
Oracle won’t return to
a dual-CEO structure
after the death this
year of Mark Hurd. B3
S&P IT À 1.08%
* * * *
return to service.
The Federal Aviation Admin-
istration is expected to approve
fixes to a MAX flight-control
system and related pilot train-
ing no sooner than February,
about two months beyond what
Boeing recently envisioned,
people familiar with the mat-
ter said. That
means the
troubled
MAX might
not carry
passengers in
the U.S. until
the spring,
with resump-
LLC, facilities known as
microfulfillment centers typi-
cally range from 10,000 to
20,000 square feet and can ful-
fill 4,000 orders a week. These
warehouses can be built in
three to six months and reach
profitability in a year.
Bigger centers can be larger
than 300,000 square feet and
fulfill 65,000 orders a week,
Jefferies said. These central-
ized facilities can be built in
two to three years and reach
profitability in four years.
Food sellers were slower to
embrace e-commerce than
other retailers because many
of their customers still want to
inspect fruit and steaks before
buying. That is changing
quickly. Online grocery sales
rose 15% in 2019, according to
a survey by advisory firm Brick
Meets Click.
Supermarkets are introduc-
ing the additional storage and
new warehouses in part to
keep stock and couriers for de-
livery out of existing store
space, where some customers
have complained of crowding
as delivery has taken off.
“It’s an entire paradigm
shift for companies,” said
Steve Hornyak, chief commer-
cial officer at Fabric, a four-
year-old builder of small fulfill-
ment centers for grocers and
other retailers.
Walmart and Meijer Inc. are
Please turn to page B2
The differing views reflect
uncertainty after this year’s
bond rally surprised forecast-
ers, many of whom had pre-
dicted yields to climb as inves-
tors sold government debt.
Instead, economic growth
cooled, trade tensions intensi-
fied and bond yields reversed
a climb that had sent them to
multiyear highs, falling to near
all-time lows.
Investors closely watch the
direction of the 10-year yield
because it is a reference rate
for markets, used in setting
borrowing costs on everything
Please turn to page B11
LAW
Firm that David Boies
co-founded names
two likely
successors. B6
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THE WALL STREET JOURNAL.
WSJ $ IDX À 0.07%
tion of service in Europe and
elsewhere likely coming weeks
afterward.
The new hurdles came into
focus Thursday with a pair of
statements from the FAA to
congressional committees, call-
ing out Boeing for not provid-
ing timely information and
for its public push
for an ac-
Online grocery sales are expected to increase, as nearly half of U.S.
households digitally ordered groceries in the past year.
Share of grocery spending
done online
8%
7 Used grocery delivery/pickup in the past month
6 radio broadcaster under the
5
4 usXM Group; the deal now un-
3 broadcaster, according to peo-
2 Average basket size
1
0 iHeart stake via debt it took
2016 ’17 ’18 ’19* ’20 ’21 ’22
FORECASTS
*Data as of August
Sources: Brick Meets Click (spending, households); Jefferies (basket size)
Disney Is Blamed in ‘Frozen 2’ Flap
BY TAKASHI MOCHIZUKI
TOKYO—Japanese artists
hired to promote Walt Disney
Co.’s movie “Frozen 2” on
Twitter said they were in-
structed to hide that they
were paid for the work, con-
tradicting Disney’s initial ex-
planation that the omission
was accidental.
“The agency that hired us
for this campaign requested
that we not label our work as
a promotion,” said an artist
who publishes under the name
Kosame Daizu in a tweet.
The artist, who has more
than 100,000 followers on
Twitter, tweeted a cartoon last
week in which he depicted
some characters in “Frozen 2”
and reviewed the movie favor-
ably. He didn’t respond to re-
quests for comment.
Other artists involved in
the campaign also apologized.
An artist who goes by the
name Yamato Nadeshiko
tweeted that an earlier tweet
praising “Frozen 2” wasn’t la-
beled as promotional in accor-
dance with the client’s direc-
tions.
Disney initially said it had
intended to ask the artists to
show that the tweets were
part of an official advertising
campaign, and it called the ab-
sence of disclosure a lapse.
On Wednesday, Disney is-
sued a new statement ac-
knowledging repeated cases in
which artists were hired to
promote Disney movies on so-
cial media without disclosure.
LIBOR 3M 1.894
NIKKEI (Midday) 23994.59 À 2.43%
celerated end to the grounding.
The friction, following
months of behind-the-scenes
tussles between the agency and
the Chicago-based aerospace
giant, culminated in a meeting
Thursday between the FAA
chief, Steve Dickson, and Boe-
ing CEO Dennis Muilenburg.
The grounding of the MAX
after a crash in Ethiopia last
March, the second involving
the plane in five months,
is costing Boeing and its
airline customers billions
of dollars and disrupting
airline passen-
Online ordering by households*
Total U.S. households
16 million
Bought groceries online in the past month
32
Bought groceries online in the past year
54
Consumers typically spend less
on groceries when they get
home delivery.
In-store
oe
Pickup
P p
Delivery
D elivery
e e
Some of the artists who en-
dorsed “Frozen 2” had earlier
published cartoons on Twitter
promoting Disney movies such
as “Avengers: Endgame” and
“Captain Marvel” without
mentioning a connection to a
company promotion.
Disney said the “Frozen 2”
case and similar examples
were caused by failure to com-
ply with internal marketing
guidelines. It didn’t say who
failed to comply or why.
The cartoonist known as
Kosame Daizu didn’t identify
the agency that told him to
hide the promotional nature of
his work.
Disney hired multiple agen-
cies to help promote “Frozen
Artists hired to promote ‘Frozen 2’ on Twitter said they were told to hide their link to the company.
Friday, December 13, 2019 | B1
gers’ travel plans. The latest
delay is likely to ratchet up
pressure on Boeing executives
as they consider whether to
further cut or even halt MAX
production at the company’s
737 factory in Renton, Wash.
The latest delay, according
to industry and government of-
ficials familiar with the details,
was partly prompted by indica-
tions from European and Cana-
dian regulators that they aren’t
comfortable with the current
package of software fixes and
training revisions proposed by
Boeing. As part of
129 million
$96
95
77
ISTOCK
2,” including a unit of Dentsu
Inc., Japan’s largest advertis-
ing and public-relations group,
Dentsu employees said.
Representatives of Dentsu,
Disney’s Japan unit and Dis-
ney headquarters in California
didn’t respond to requests for
comment.
In the U.S., regulators have
said that social-media posts
by influential people promot-
ing a product or service are
problematic if the influencers
are paid and don’t disclose it.
The Federal Trade Commis-
sion said in 2017 that influenc-
ers “should clearly and con-
spicuously disclose” paid
work.
Japan’s consumer laws bar
See more at WSJ.com/Markets
the FAA’s strategy to generate
public support for the plane’s
safety, U.S. officials are seeking
to obtain at least a general en-
dorsement from those regula-
tors even if they officially clear
the MAX later.
The warnings from the FAA
started before Thursday’s
meeting in Washington, which
was slated to include other se-
nior FAA officials and Stan
Deal, the new head of Boeing’s
commercial airplane unit. Mr.
Dickson pushed back against
what the agency described as a
pattern of Boeing’s overly opti-
Please turn to page B2
Liberty
Media
Sets Sights
On iHeart
An affiliate of John Ma-
lone’s Liberty Media Corp. is
seeking Justice Department
permission to buy a larger
piece of iHeartMedia Inc., ac-
By Anne Steele,
Brent Kendall
and Cara Lombardo
cording to people familiar
with the matter, a deal that
would put the nation’s largest
same corporate umbrella as
the leading concert promoter
and satellite-radio giant Siri-
usXM.
Liberty owns a 4.8% stake
in iHeart through Liberty Siri-
der consideration could give it
control or ownership of the
ple familiar with the matter.
The government is consid-
ering the request, the people
said, with one of them cau-
tioning that Liberty hasn’t de-
cided what kind of transac-
tion, if any, it would proceed
with should it receive permis-
sion. Liberty acquired its
on before the company re-
structured, which converted to
equity when the broadcaster
emerged from bankruptcy
early this year.
Liberty owns 33% of Live
Nation Entertainment Inc.,
making it the concert giant’s
Please turn to page B2
false or misleading advertis-
ing, but an official at the
country’s Consumer Affairs
Agency said the agency hasn’t
issued guidance on paid posts
by influencers.
Public-relations profession-
als in Tokyo said it was com-
mon in Japan for companies
to pay influencers for social-
media posts without disclos-
ing the relationship. “The Jap-
anese advertising industry is
divided into two parts based
on ethical standards,” said so-
cial-media marketing expert
Motohiko Tokuriki. “I am
aware there are many who ha-
bitually practice this kind of
thing, knowing it might be in-
appropriate, but not illegal.”
WALT DISNEY/EVERETT COLLECTION
 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.
B2 | Friday, December 13, 2019
INDEX TO BUSINESSES
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 Facebook.A1,A2,B11,B12
Abrams Capital
Management.............B6
Albertsons...................B1
Alibaba Group...........B10
Alphabet...........A2,B3,B4
Altria Group..............B12
Amazon.com...B3,B12,R8
American Airlines . B2,B3
Apple....................B4,B10
B
Bank of America.......B10
Boeing...............B1,B2,B3
British American
Tobacco ................... B12
Broadcom.............B4,B12
C Juul Labs...................B12
Caterpillar ................. B11
Cigna............................B5
Cisco Systems...........B12
Citigroup....................B10
Costco Wholesale.......B2
Credit Suisse Group . B10
D L
Deere.........................B11
Delta Air Lines ........... B3
Dow Chemical...........B11
E-F
Elliott Management ... B6
Epic Games ................. B4
INDEX TO PEOPLE
A Gebeily, John..............A8
Atwater, Peter..........B11
B H
Banga, Ajay.................R2
Bastian, Ed..................B3
Blitz, Steven.............B11
Boies, David................B6
Boxer, Mark.................B5
C R
Callon, Scott ............... B4
Cordiner, Ralph ........... R2
Cosset, Yael ................ B2
D-E
DeLoach, Jim...............R3
Ellison, Larry...............B3
F-G
Falkenhäll, Richard...B11
Galanti, Richard..........B2
Ganenthiran, Nilam....B2
Grocers Try
Using Small
Warehouses
Continued from page B1
testing small fulfillment cen-
ters. Ahold Delhaize’s Stop &
Shop LLC said it would open
several more of these ware-
houses this year, while its Pea-
pod delivery division continues
to build bigger distribution
centers.
In contrast, Kroger, the na-
tion’s biggest supermarket op-
erator, is building bigger distri-
bution centers for delivery,
wagering that economies of
scale will make the larger in-
vestment worthwhile.
“You control and you know
exactly what’s in the facility,”
Yael Cosset, chief digital offi-
cer, said in an interview.
Kroger took a stake of more
than 6% last year in U.K.-based
warehouse company Ocado
Group PLC and said the part-
nership would build as many
as 20 largely automated facili-
ties in the U.S. They will vary
in size from 20,000 square feet
to more than 300,000 square
feet, Mr. Cosset said.
Kroger is investing about
$55 million in the first ware-
house with Ocado in Monroe,
Ohio. Analysts have said the
Deal Would
Link Sirius
And iHeart
Continued from page B1
largest shareholder, and 71% of
satellite-radio company Sirius
XM Holdings Inc.
A deal for iHeart would in-
crease its ability to collaborate
among those businesses, po-
tentially creating a bulwark
against the rising influence of
music-streaming companies.
Last year, Liberty orches-
trated Sirius’s purchase of in-
ternet-radio company Pandora
Media Inc.—in which it also
held a controlling stake—for
$3 billion, another move in-
tended to compete more effec-
tively against Spotify Technol-
ogy SA and other on-demand
music-streaming services.
Liberty Chief Executive
Greg Maffei in late November
touted the company’s in-
creased focus on audio and
particularly its exposure to the
“exploding” podcast market
including through iHeart, the
No. 2 publisher by audience,
according to Podtrac. If Lib-
erty were to gain control of
Microsoft ............. B3,B12
Froneri.......................B12 Morgan Stanley........B10
G-H N-O
Goldman Sachs.........B10 Nestlé........................B12
HSBC Holdings..........B10 Nvidia........................B11
Huawei Technologies..B4 Oracle .......................... B3
I P
Ichigo Asset PAI Partners ............. B12
Management.............B4 PayPal Holdings........B10
iHeartMedia................B1 PG&E ........................... B6
Imperial Brands ........ B12 S
Instacart......................B2
Salesforce ................... B3
J SAP..............................B3
Japan Display..............B4 Saudi Arabian OilA1,B10
JPMorgan Chase.......B10 Sirius XM Holdings .... B2
Southwest Airlines .... B2
K Symantec .................... B4
Knighthead Capital T-U
Management.............B6 Takeoff Technologies..B1
Koninklijke Ahold Target..........................B2
Delhaize....................B1 TÜV SÜD...................A10
Kroger..........................B1 Twitter........................A2
Unilever.....................B12
Las Vegas Sands ...... B11 United Airlines............B3
Liberty Media..............B1 V-W
M Vale ........................... A10
McDonald's..................B3 Walmart.................B1,B2
Meijer..........................B1 Walt Disney................B1
Micron Technology....B11 Wynn Resorts...........B11
Montani, Mike ............ B2
Gravante, Nicholas ..... B6 O Costco Wholesale Corp.
Otting, Joseph..........B10
Harrison, Natasha ...... B6 P ing into the holiday shopping
Hornyak, Steve...........B1
Peterson, Jim..............B2
I Piegza, Lindsey.........B11
Polman, Paul...............R2
Iyengar, Narayan.........B1
Pyle, Mike.................B11
J Comparable sales, those
Josefowicz, Matthew.B5
Remick, Tierney..........R2
K tions open for at least 12
Rogers, James ............ B6
Keane, Jim..................R3 S-T
Kelly, Gary...................B2 Safra Catz...................B3
Kikuoka, Minoru..........B4 Schiller, Jonathan.......B6
Kinsella, Peter..........B11 Tan, Hock .................... B4
Kleintop, Jeffrey.......B11
W-Z
Krause, Tom................B4
Wilson, Tom................R1
L-M Winston, Andrew ....... R2
Lipton, Martin.............R1 Zuckerberg, Mark.......A2
centralized facilities take too
long to build when coming up
with a timely formula for de-
livery is critical. Executives
have said they are sticking
with the Ocado strategy and
remain open to other models.
Big fulfillment centers that
are best suited to next-day de-
livery are already behind the
times as consumers now ex-
pect an order to show up in as
little as a few hours, said Mike
Montani, an Evercore analyst.
Smaller grocers aren’t add-
ing their own delivery capabili-
ties, relying instead on compa-
nies including Instacart Inc.
Price Chopper, a chain in the
Northeast, formed a partner-
ship with Instacart a year ago
and now offers delivery from
90% of its roughly 100 stores.
“We don’t see the economic
benefit to having stand-alone
fulfillment centers,” said Jim
Peterson, Price Chopper’s chief
financial officer and treasurer.
Some analysts caution that
food retailers might lose con-
trol of their customer relation-
ships when solely using ser-
vices like Instacart. Instacart
shoppers are also crowding
aisles of stores.
Instacart, valued at roughly
$7.8 billion when it raised $871
million last year, delivers from
over 300 supermarket chains.
“Not every grocer has the
desire, time or capital to build
their own fulfillment center,”
Instacart President Nilam Ga-
nenthiran said.
Lizzo performed at an iHeartRadio event in Texas last week.
iHeart, it would represent a
consolidation of the avenues
by which music and other au-
dio content is distributed, pro-
moted and monetized.
Justice Department anti-
trust officials recently asked
interested parties how they
might be affected by a poten-
tial deal between a live-enter-
tainment company and a radio
company, according to a per-
son familiar with the inquiries,
without mentioning Liberty,
Live Nation or iHeart by name.
Such a deal has been ru-
mored for some time. Liberty
BUSINESS & FINANCE
Comparable sales rose 5% during the quarter ended Nov. 24, a period that didn’t include the busy shopping day after Thanksgiving.
Costco Posts a Sales Gain
BY SARAH NASSAUER quarter.
The shift reduced sales by
about half a percentage point,
said Thursday sales rose lead- the company said.
Profit rose, with net income
season, a sign that the ware- of $844 million during the
house retail chain continues to quarter, up from $767 million
grab market share and benefit during the same period last
from a strong economy. year. Costco earned $1.90 a
share, compared with $1.73 a
from stores or digital opera- share during the like quarter
last year.
months, rose 5% during the The retailer’s e-commerce
quarter ended Nov. 24 exclud- growth slowed considerably
ing the impact of gasoline due to the later Thanksgiving,
prices and currency fluctua- rising 5.7%. Without the holi-
tions. day shift, e-commerce sales
Thanksgiving and Black Fri- would have grown around 18%
day, the busiest shopping pe- during the quarter, Chief Fi-
riod of the year, fell a week nancial Officer Richard Galanti
later this year, outside of the said on a conference call
Boeing Southwest Reaches
Deal With Jet Maker
Criticized
By FAA Southwest Airlines Co. and
Boeing Co. said they struck a
deal to compensate the airline
for some of the damage from
Continued from page B1 the nine-month grounding of
mistic projections for when the the 737 MAX jetliner.
MAX would win approval to re- The carrier said Thursday it
enter passenger service, ac- would share $125 million of the
cording to an email sent to proceeds with its employees.
lawmakers by the FAA’s legisla- Southwest didn’t disclose the
tive office and reviewed by The full terms of the compensation,
Wall Street Journal. which it said covered a portion
“The administrator is con- of its projected financial dam-
cerned that Boeing continues ages. It said it is continuing to
to pursue a return-to-service negotiate with Boeing.
schedule that is not realistic “We’re pleased we were
due to delays that have accu- able to reach a settlement—no-
mulated for a variety of rea- body can be happy about the
sons,” the email said. situation we’re in,” Gary Kelly,
“More concerning, the ad- Southwest’s chief executive,
ministrator wants to directly said in an interview.
address the perception that Southwest had 34 MAX jets
some of Boeing’s public state- in its fleet when the aircraft
ments have been designed to was grounded and was due to
force FAA into taking quicker receive dozens more over the
action.” course of the year. The settle-
The administrator’s mes- ment announced Thursday ad-
sage, according to the email,
was to convey that the agency
and manufacturer “must take grounding the U.S. MAX fleet.
the time to get this process “We will work with the FAA
right.” to support their requirements
One of the people familiar and their timeline as we work
with the FAA’s plans said the to safely return the Max to ser-
approval could slip into March vice in 2020,” Boeing said
in part because of the regula- Thursday. “Dennis Muilenburg
tor’s aim to brief their interna- and Stan Deal had a productive
tional counterparts before un- meeting today with Adminis-
in debt off iHeart’s books and
turning over control of the
company to lenders and bond-
holders from its longtime
owners, private-equity compa-
nies Bain Capital and Thomas
H. Lee Partners LP. The pri-
SUZANNE CORDEIRO/AGENCE FRANCE-PRESSE/GETTY IMAGES
vate-equity firms took iHeart
private in a $19.4 billion deal
in 2008 when it was known as
Clear Channel Communica-
tions Inc.
The restructuring plan,
which reduced iHeart’s debt
load to $5.75 billion from $16.1
billion, transferred ownership
of the company to a group of
lenders and bondholders led
by Franklin Advisers Inc.
iHeart’s CEO Bob Pittman—
a veteran media executive who
previously played integral
roles in creating and running
MTV and AOL—and finance
in February of last year made chief Rich Bressler remain in
an offer to pump $1.16 billion their roles.
in cash into iHeart, weeks be- As part of the restructur-
fore it filed for bankruptcy, for ing, publicly traded outdoor-
a 40% stake in the reorganized advertising unit Clear Channel
company. It withdrew the offer Outdoor Holdings Inc. was
that June because iHeart’s re- separated from the company.
sults were below expectations, Mr. Pittman said that move
but left the door open for fu- would let iHeart focus on its
ture discussions. The New audio business.
York Post last December re- iHeart returned to the pub-
ported Liberty was seeking a lic markets in July, listing on
roughly 35% stake in the com- the Nasdaq. Its market value
pany postbankruptcy. was just under $1 billion
A judge in January ap- Thursday afternoon but that
proved a restructuring plan, belies the company’s heft.
wiping more than $10 billion iHeart, which operates 848
* *** THE WALL STREET JOURNAL.
Thursday. In the previous
quarter, Costco’s e-commerce
sales rose 21.9%.
On Thanksgiving, Costco’s
website slowed as shoppers
rushed to grab deals and some
customers couldn’t check out.
“It was unfortunate. Despite
all the efforts to have plenty
of capacity,” said Mr. Galanti.
Online sales from Thanks-
giving through the following
Monday climbed “in the very
high teens,” he said, but “we
did leave something on the ta-
ble.”
The company has long re-
sisted encouraging shoppers
to buy online for in-store
pickup, saying stores’ sales
growth is healthy without of-
dressed Southwest’s losses in
2019. Mr. Kelly said the ground-
ing has resulted in an $830 mil-
lion reduction in operating in-
come. The two companies are
continuing to discuss how to
compensate the airline for
losses next year.
Boeing took a $5.6 billion
charge against its second-quar-
ter earnings to cover payments
to customers. The company has
said insurance policies would
cover $500 million in customer
compensation, as well as any
damages paid to the families of
the 346 victims of the two
crashes.
Icelandair Group Hf in Sep-
tember said it reached a deal
with Boeing to cover a fraction
of what the airline said
amounted to $140 million in
costs for grounding its six MAX
jets and delays to the delivery
of another 10.
Other U.S. carriers have said
they are negotiating with Boe-
ing but want to see how high
their costs climb before reach-
ing a settlement.
—Alison Sider
trator Dickson and Deputy Ad-
ministrator Elwell,” the com-
pany said.
Shortly after the meeting,
the FAA’s legislative office sent
a follow-up email to lawmakers
saying Mr. Dickson told Boeing
that the company’s focus
should be on the “quality and
broadcast radio stations in the
U.S., also runs a concert-pro-
motion business and has been
in the on-demand streaming-
music market since 2016,
when it launched a pair of ser-
vices within its existing
iHeartRadio app, which had
previously just played pro-
gramming from the broadcast
stations. Revenue in the third
quarter rose 3% to $948 mil-
lion.
Sirius offers satellite-radio
subscriptions, primarily for
listening in cars, but has been
expanding into ad-supported
streaming media, mainly
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fering the service and Costco
would rather have shoppers
come to stores to buy. On
Thursday, executives said they
remain skeptical of the service
embraced by other retailers
including Walmart Inc. and
Target Corp.
“As it relates to buy online
and pickup in-store, we con-
tinue to look at what others
do and continue to scratch our
head,” said Mr. Galanti. “We’re
not at a point that we’re plan-
ning to do anything with
that.”
Costco reported total reve-
nue of $37.04 billion during
the quarter, up from $35.07
during the same period last
year.
timeliness of data submittals
for FAA review.”
The email was reviewed by
the Journal. The note added
that the “FAA’s certification re-
quirements must be 100% com-
plete before return to service,”
referring to past Boeing re-
quests to recertify a new flight-
control computer system be-
fore all required data was
submitted, according to one
person familiar with the
agency’s deliberations.
The FAA chief reiterated
that he has told agency experts
working on the MAX review “to
take the time they need to get
this right.”
In early November, Boeing
said it expected the FAA to lift
its flight ban in mid-December
and approve related pilot train-
ing in January, leading U.S. air-
lines to plan on resuming
flights on the MAX in March.
Following the latest develop-
ments, American Airlines
Group Inc. said it would take
the MAX out of its schedules
through April 6.
Southwest Airlines Co. is
likely to remove the MAX from
passenger schedules through at
least early April, a spokes-
woman for the Dallas carrier’s
pilot union said.
Earlier on Thursday, China’s
aviation regulator, the first to
ground the MAX after the
crash in Ethiopia, said it has
concerns about the reliability
and security of Boeing’s pro-
posed changes to the aircraft.
though its Pandora acquisi-
tion, and podcasts. Revenue
rose 6% last year to $5.77 bil-
lion. It ended the most recent
quarter with more than 34.6
million satellite-radio sub-
scribers in the U.S. and Can-
ada, and the company’s shares
are up over 20% this year.
Live Nation, the world’s
largest concert promoter, sits
at the forefront of a booming
live-events business. It ended
2018 with $10.79 billion in rev-
enue, up 11% from the year
prior. Its stock price has risen
more than 40% so far this
year.
 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.

THE WALL STREET JOURNAL. Friday, December 13, 2019 | B3

BUSINESS NEWS

Burger
Giant
Oracle Will Stay With Sole CEO
Software company of executives who are “poten- best known for its corporate cle said, would rise roughly but in the era of cloud com-

Wins Legal reports higher profit

but disappointing
tial CEOs when both Safra and
I retire, which is not anytime
soon.” But he described the
database software, reported
$9.61 billion in revenue for the
quarter ended Nov. 30, miss-
2%, broadly in line with ana-
lysts’ projections.
The company said it is see-
puting, it has been playing
catch-up to the likes of Ama-
zon.com Inc., Microsoft Corp.

Victory revenue for quarter

BY HEATHER HADDON
The National Labor Rela-
tions Board instructed a fed-
eral judge to approve a settle-
ment in a case pertaining to
McDonald’s Corp.’s status as a
joint employer, helping shield
the company from liability
from the employment prac-
tices of its hundreds of U.S.
franchisees.
The decision is a victory for
the world’s largest fast-food
chain as it faces calls to im-
prove working conditions at
its 14,000 domestic restau-
rants. If finalized, the determi-
BY MARIA ARMENTAL
Oracle Corp. said it won’t
replace its late co-CEO, Mark
Hurd, leaving Safra Catz as the
sole top executive leading the
software giant after years of
operating with an unusual,
two-chief structure.
In the company’s first earn-
ings report since Mr. Hurd’s
death in October, Oracle
founder and Chairman Larry
Ellison said it is working to
strengthen its management
team, to build develop a group
two-CEO setup as unusual and
not something Oracle is look-
ing to repeat.
Ms. Catz now leads Oracle
as sole CEO. Company co-
founder Larry Ellison, who
ceded the CEO post to Mr.
Hurd and Ms. Catz in 2014, re-
mains active as chairman and
chief technology officer.
The twin-CEO structure has
had a mixed record at the
small number of companies
that have tried it over the
years. But two of Oracle’s ri-
vals, Salesforce.com Inc. and
SAP SE have also adopted it
over the past two years.
The Silicon Valley company,
ing analysts’ projected $9.65
billion, according to FactSet.
Profit for the second quar-
ter rose to $2.31 billion, or 69
cents a share. Excluding stock-
based compensation and other
items, profit rose to 90 cents a
year, from 80 cents a share a
year earlier.
Analysts surveyed by Fact-
Set expected a profit of 68
cents a share, or 89 cents a
share as adjusted.
For the current quarter, Or-
acle gave a somewhat muted
outlook. It projected adjusted
profit of 95 cents to 97 cents a
share compared with analysts’
projected 97 cents. Sales, Ora-
ing strong demand and higher
conversion rates and expects
and Alphabet Inc.’s Google.
In the most recent quarter,
Oracle reported a combined
$7.94 billion cloud and license
revenue, just shy of analysts’
The company gave a projections of roughly $8
somewhat muted billion.
Oracle has been trying to
outlook for the introduce new features to its
current quarter. cloud, including greater
automation, to help lure cus-
tomers away from other ven-
dors, in particular market
strong momentum in the sec- leader Amazon.
ond half of this fiscal year to Shares, which have been
carry through 2021. trading near record levels in
Oracle deftly navigated con- recent months, closed Thurs-
stant technological changes day at $56.47 and fell 2.6% in
since it was founded in 1977; after-hours trading.

Delta Acquires Stake in Private-Jet Operator

nation would put more re-
sponsibility on franchisees for
McDonald’s and other compa-
nies to address the concerns
of their workers.
In a split ruling, a panel of
the labor body on Thursday
accepted a settlement to re-
solve dozens of cases brought
against McDonald’s starting in
2012 over employment viola-
tions. The proposed settle-
ment would give 20 affected
employees back pay from fran-
chisees, valued at $171,636.
McDonald’s agreed to pay into
BY DOUG CAMERON The investment in Wheels
Up continues a diversification
Delta Air Lines Inc. said it strategy at Delta that has in-
is buying a minority stake in cluded buying a jet-fuel refin-
Wheels Up, a private-jet oper- ery as well as investing in
ator, that will extend Delta’s overseas airlines and more-an-
operations to more premium cillary businesses such as air-
passengers. craft maintenance and credit
Wheels Up and Delta’s ex- cards.
isting corporate-aircraft unit The strategy has helped
would together have 190 make it the most profitable of
planes and a wider customer the three network carriers.

DANIEL SLIM/AGENCE FRANCE-PRESSE/GETTY IMAGES

a settlement fund if restaurant
owners declined to pay resti-
tution themselves, an amount
the panel set at $250,000.
Workers in nearly 300
cases said they were punished
after campaigning for a $15
hourly wage and union repre-
sentation at McDonald’s res-
taurants. The complaints al-
leged that some of the
workers lost shifts or were
fired.
The board found that the
settlement was reasonable and
instructed an administrative
law judge, Lauren Esposito, to
accept it.
Groups that brought the
cases on behalf of the workers
said they would appeal the de-
cision. “The settlement is not
valid,” a campaign spokes-
woman said.
base than Delta’s unit, so
planes would fly empty less
often, Delta Chief Executive
Ed Bastian said in an inter-
view.
He and Wheels Up wouldn’t
say how much Atlanta-based
Delta is investing in the New
York-based company.
He said the move would also
help reduce emissions in the
private-jet business—a focus
for critics of the airline indus-
try’s efforts to tackle climate
change because of its larger
per-passenger carbon footprint
compared with commercial jet-
liners. Mr. Bastian said he ex-
pects more pressure on the
global airline industry to limit
and mitigate emissions.
“This is an existential
threat to the growth of our in-
dustry,” he said.
By investing in Wheels Up, the airline is extending its operations to more premium passengers.
Airlines, notably in Europe,
are facing mounting con-
sumer pressure to try to ad-
dress these concerns by doing
things such as selling carbon
offsets that passengers can
purchase with their tickets.
These are used, for example,
to plant trees or invest in re-
newable fuels.
Mr. Bastian said Delta
hasn’t done enough to publi-
cize similar efforts. Like Delta,
other U.S. and overseas air-
lines are focusing on reducing
their carbon footprint through
Its shares are up 10% this
year, outperforming Ameri-
can Airlines Group Inc. and
United Airlines Holdings
Inc.
Both those rivals have been
hobbled by the grounding of
their Boeing Co. 737 MAX
fleets after two fatal crashes.
Delta didn’t operate any of the
aircraft. Mr. Bastian said if
global regulators recertify the
MAX to fly next year, its re-
turn could add enough capac-
ity across the industry to put
downward pressure on ticket
buying more fuel-efficient air- prices.
craft, expanding use of biofu- Delta said that it expects
els and cutting single-use capacity to grow by 4% and
plastics. sales to grow by 4% to 6% next
“We’ve got to get much year, with targeted earnings
more specific about the off- per share of $6.75 to $7.75, in
sets, let the passengers see line with analysts expecta-
what we are doing,” he said. tions.

Barron’s wants to recognize female

leaders in finance today and those
positioned to lead the industry in
the future. If you know someone
who might fit the bill, nominate them
for the inaugural Barron’s 100 Most
Influential Women in U.S. Finance.

Nominate a Top 100 Woman now

Barrons.com/B100Women

© 2019 Dow Jones & Company, Inc. All rights reserved. 4E5019
 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.

B4 | Friday, December 13, 2019 THE WALL STREET JOURNAL.

TECHNOLOGY WSJ.com/Tech

App Maker Challenges Google Fees Broadcom

BY SARAH E. NEEDLEMAN
Forecasts gal in the case of a distribu- nesses while keeping users velopers to profit off their their market position.

The creator of “Fortnite” is

challenging Google’s policy of
tion platform with over 50%
market share,” Epic Chief Ex-
ecutive Tim Sweeney said.
taking a cut of payments made
for app-related purchases at a
time regulators have started
“Epic doesn’t seek a special
exception for ourselves; rather
we expect to see a general
scrutinizing those kind of ar- change to smartphone indus-
rangements between tech try practices in this regard.”
companies and their vendors. “Fortnite” is free to play
Epic Games Inc. is asking and sells virtual currency for
Google to release in its app real money that users can
store a version of “Fortnite” spend on in-game perks such
with a built-in payment sys- as avatar costumes and dance
tem that allows the developer moves.
to keep all in-game revenue. The shooter game has been
Google, a unit of Alphabet accessible on mobile devices
Inc., takes a 30% cut for the running Google’s Android op-
kind of in-game purchases erating system since last year,
players make on games down- though only by downloading it
loaded via its app store. from Epic’s website. Now the
Epic’s move effectively puts game maker wants to distrib-
Google in the uncomfortable ute the free game also via
position of having to either Google’s app store, called
approve the game and forgo a Google Play, which could help
lucrative revenue stream or broaden its reach. That is
potentially provide antitrust where Google then takes a
regulators with evidence it 30% cut on sales.
may be unduly pressuring “Google Play has a business
smaller companies. model and billing policy that
“We believe this form of ty- allow us to invest in our plat-
ing of a mandatory payment form and tools to help devel-
service with a 30% fee is ille- opers build successful busi-
safe,” Google said.
It said it expected compa-
nies that want to distribute
their apps through its channel
to ”participate under the same
terms as other developers,”
adding they can also distribute
their game to Android users
without going through
‘Fortnite’ developer
pushes payment
system that would
cut out Google.
Google’s channel.
Google and Apple Inc.,
which also charges app devel-
opers to distribute their soft-
ware, account for the over-
whelming majority of sales
generated from download fees
and in-app purchases.
Legislators are investigat-
ing whether the companies are
stifling competition and mak-
ing it too challenging for de-
apps.
Other companies have
fought back or sought ways
around Google and Apple’s
app-store fees. In March, Spo-
tify Technology SA filed an an-
titrust complaint against Ap-
ple in Europe, in which the
streaming-music company ac-
cused Apple of abusing its app
store to limit competition
against its own Apple Music.
Spotify said that Apple makes
it difficult for rival subscrip-
tion services to market them-
selves to users without using
Apple’s payment system.
Apple defended its practice
of taking a 30% cut of sales
through its App Store in re-
sponse to Spotify’s criticism.
It has said it is entitled to take
a share of app sales because it
built the store and employs
staff who review thousands of
apps for compliance with rules
around privacy and content.
The tension came as U.S.
regulators have been stepping
up their investigations of
whether some of the biggest
tech companies are abusing
Google’s app store policy
also is under scrutiny over-
seas. Disconnect Inc., another
app developer, this year com-
plained to European regulators
that Google was abusing its
market position. Google has
called the complaint “base-
less.”
“Fortnite” also is available
on Apple devices. Apple, which
only allows distribution
through its App Store, gets a
30% cut from Epic.
Apple has generated $15.3
billion in app store revenue
this year, while Google has
collected $8.3 billion, accord-
ing to estimates from app-ana-
lytics firm Sensor Tower Inc.
“Fortnite” has been one of
the most popular games on
the videogame market in the
past two years.
Epic formally submitted
“Fortnite” to Google for re-
lease this week. Apps from de-
velopers that are new to
Google Play, such as Epic, typi-
cally must wait up to seven
days to get a signoff from
Google.
Upturn in
Earnings
BY ASA FITCH
Broadcom Inc. promised an
earnings recovery in the cur-
rent financial year after the
chip maker posted weaker
fourth-quarter figures, dented
by the protracted U.S. export
ban of some items to Chinese
telecom giant Huawei Tech-
nologies Co.
Broadcom said per-share
earnings fell to $1.97 in the fi-
nal quarter of the year ended
Nov. 3, compared with $2.64 a
year earlier. The more closely
watched adjusted earnings,
which strip out some one-time
items, fell 8% to $5.39 a share,
in line with expectations from
analysts surveyed by FactSet.
The company gave an up-
beat sales forecast for the fi-
nancial year that began last
month, after reporting $5.78
billion in revenue for its most
recent quarter. Analysts had
expected $5.77 billion. The

Supplier to Apple Drums Up Rescue Funds

company projected growth of
about 10% to roughly $25 bil-
lion, compared with 8% sales
growth in the year just ended.
BY TAKASHI MOCHIZUKI Broadcom shares were
AND PETER LANDERS lower in after-hours trading,
after rising slightly immedi-
TOKYO—A financially ately following the release of
strapped Japanese supplier of the results.
displays for Apple Inc.’s iPhone Chief Executive Hock Tan
11 said it has lined up financing said he was optimistic about
of up to ¥90 billion ($828 mil- growth in the company’s core
lion) from an investment fund semiconductor business in its
with U.S. connections. current fiscal year. The com-
Japan Display Inc. said pany, he said, would benefit
Thursday that it has agreed on from its recent acquisition of
the basic outline of an invest- cybersecurity firm Symantec
ment by a Singapore arm of Corp.’s enterprise business.
Tokyo-based Ichigo Asset Broadcom’s semiconductor
Management Ltd., which man- businesses, which account for
ages funds from U.S. univer- about four-fifths of revenue,
sity endowments and other in- fell 7% year-to-year in the fis-
vestors. cal fourth quarter, offset by a
The display maker also said rise in the software segment.
that a major customer was The chip business is likely to
ready to pitch in $200 million improve this fiscal year, said
for the rescue. People involved Mr. Tan, who promised growth
in the deal identified that of 7% in sales of core semicon-
company as Apple. ductor products. “We continue
YOSHIO TSUNODA/AFLO/ZUMA PRESS

Ichigo Asset Management’s to believe that our core semi-

chief executive, Scott Callon, conductor business is bottom-
is an American corporate-gov- ing,” he said.
ernance expert who wrote a The rollout of 5G communi-
book about the breakdown of cations networks also is likely
Japan’s high-technology indus- to drive growth, Chief Finan-
trial policy. He is expected to cial Officer Tom Krause said
assume a significant role at on a call with analysts. The
Japan Display if the invest- company’s radio-frequency
ment goes through. Japan Display, which makes iPhone 11 screens, is getting up to $828 million from an investment fund. A company presentation last year. components business, which
Earlier this year, Japan Dis- had $2.2 billion in sales in the
play said it was preparing to People involved in the talks iar with the plans. has struggled in recent years shares at ¥50 a share, with the fiscal year just ended, is likely
receive rescue funds from a said Thursday’s announcement Apple has switched to or- owing to excess supply of dis- remainder coming through to grow as smartphone makers
consortium known as Suwa, was meant to signal that Japan ganic light-emitting diode, or play panels in the industry purchases of Japan Display boost production of 5G-capa-
which at the time included in- Display had all but given up on OLED, panels for some new and Apple’s switch to OLED bonds that could be converted ble devices, he said.
vestors from China and Tai- Suwa and was now focusing on iPhone models. Japan Display panels. into stock. Broadcom has come off a
wan. The key players in the the Ichigo deal. doesn’t yet make OLED panels Japan Display said Ichigo is Ichigo would become Japan tumultuous year, buffeted, in
group later pulled out of the The rescue funding would for smartphones, although it is willing to invest ¥80 billion to Display’s top shareholder but part, by U.S. trade tensions
deal, but Japan Display’s chief stabilize Apple’s supply of liq- supplying smaller OLED dis- ¥90 billion ($737 million to hold less than 50%, this per- with China. The company, in
executive, Minoru Kikuoka, uid-crystal displays for such plays for the Apple Watch. $828 million) in the company son said. June, cut its sales forecast by
said negotiations continue. He models as the iPhone 11. The The display maker, which and that the infusion could be Japan Display shares rose $2 billion. Chinese telecom-
said the Ichigo investment company is also preparing to was created in 2012 through a completed by March. ¥4 to ¥73 in Tokyo trading equipment maker Huawei ac-
would proceed only if talks sell a lower-cost phone next government-backed merger of A person involved in the Thursday after the company counted for about $900 mil-
with Suwa were to fall year that would use LCD pan- the display units of three Jap- deal said half of Ichigo’s in- confirmed the outline of the lion of Broadcom’s sales in its
through. els, according to people famil- anese electronics companies, vestment would be in common Ichigo investment plan. previous fiscal year.

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 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.
THE WALL STREET JOURNAL.
Medicare Sign-Up Delays Can Be Costly
Those unaware of the
rules may see gaps in
coverage and face
financial penalties
BY ANNE TERGESEN
As more Americans post-
pone retirement, a growing
number are experiencing
Medicare enrollment problems
that can saddle them with
hefty penalties and months-
long coverage
RETIREMENT gaps.
The roots of
the problem are Medicare’s
complex rules and a lack of no-
tice from the program explain-
ing the steps older workers
must take to enroll once they
leave their jobs. In recent de-
cades, Americans have re-
mained in the workforce lon-
ger, for reasons including
concerns about savings and a
desire to keep working, with
many putting off taking Social
Security payments.
That has contributed to a
14% increase in the number of
people paying late-enrollment
penalties between 2013 and
2017, according to government
statistics.
There is a silver lining:
From Jan. 1 to March 31 of
each year, individuals who
missed key Medicare enroll-
ment deadlines can belatedly
sign up, though they may face
coverage gaps and penalties.
The easiest time to sign up
for Medicare is during a
seven-month period that starts
three months before turning
65, the age most people be-
come eligible for the federal
health insurance program. For
those already collecting Social
Security, enrollment is gener-
ally automatic for Medicare
Part A, which covers hospital
care, and Part B, which covers
doctors’ visits and outpatient
care. Part A is typically free.
Part B costs between $135.50
and $460.50 a month this year,
depending on an individual’s
income.
For individuals automati-
cally enrolled when turning
65, said David Lipschutz, asso-
ciate director at the nonprofit
Center for Medicare Advocacy,
“their Medicare cards show up
in the mail.” But people who
delay Social Security past age
65 must sign up for Parts A
and B on their own.
According to the U.S. Bu-
reau of Labor Statistics, 27%
of Americans ages 65 to 74 are
in the labor force, up from
17.7% in 1998. For those in that
GET A CLEAR
group who delay Social Secu-
rity, enrolling for Medicare
can be complicated.
“Neither Social Security nor
Cigna AI Product Identifies PLAN FOR YOUR
People Who Skip Medicines RETIREMENT.
BY AGAM SHAH
Cigna Corp. plans to ex-
pand a system that uses artifi-
cial intelligence to identify
gaps in treatment of chronic
diseases, such as patients
skipping their medications,
and deliver personalized rec-
ommendations for patients.
The product, called Health
Connect 360, integrates data
from a combination of sources
and analytical tools, some de-
veloped at Cigna and others
brought in as part of its $54
billion acquisition of phar-
macy-benefit manager Express
Scripts Holding Co., completed
late last year.
Express Scripts, which be-
gan developing the service
two years ago, rolled out por-
tions of it to some customers
this year.
The complete system will
be available next month to all
customers of Express Scripts
and Cigna that offer health
benefits to employees, the
company said.
Health Connect 360 was de-
veloped for treatment of
chronic diseases, including di-
abetes and heart disease, as
well as for pain management.
The system aggregates medi-
cal, pharmacy, lab and biomet-
ric data—such as information
from glucometers, which mea-
sure blood-sugar levels—into a
dashboard that is accessible
through an online interface.
The dashboard will be visi-
ble to the service’s customers
and to Express Scripts case
managers and nurses with ac-
cess rights.
The system can also feed
Arizona retiree Sarah Truman ‘got the shock of my life’ when she found her Medicare Part B coverage would be delayed and cost extra.
Avoiding Common
Enrollment Pitfalls
Here are two common sce-
narios in which people experi-
ence Part B enrollment prob-
lems—and how to avoid snafus.
If your employer has fewer
than 20 workers
If you or your spouse work
and receive health insurance on
the job, you can choose to en-
roll in Medicare or remain on
the employer’s plan.
But workers at firms with
Medicare fully explains the
rules” or sends them a re-
minder when it’s time to sign
up, said Frederic Riccardi,
president of the nonprofit
Medicare Rights Center.
Enrollment rules can differ
depending on whether individ-
uals work for a small or large
company.
In addition, while most
workers with employer-based
coverage are allowed to delay
Medicare without penalty, they
must sign up within eight
months of stopping work, even
if they keep their employer-
based insurance through a re-
tiree medical plan or under Co-
bra, a federal law that permits
workers who leave their jobs to
temporarily remain in a former
employer’s health plan.
A spokesman for the Cen-
ters for Medicare and Medic-
aid Services, which adminis-
ters Medicare, didn’t respond
information to electronic-med-
ical record systems for physi-
cians.
More health-care organiza-
tions are looking to artificial
intelligence to spot diseases,
prioritize cases and improve
patient outcomes—results that
also have the effect of lower-
ing overall costs of providers.
AI systems’ ability to learn
from an array of patient histo-
ries, medical tests and diag-
nostic tests makes them ideal
tools for care. However, get-
ting access to health data re-
quired for better outcomes can
be a bottleneck.
Express Scripts
rolled out portions of
the service to some
customers this year.
“That was our concept
around the acquisition of Ex-
press Scripts—it was much
more than just simply buying
a pharmacy-benefits manage-
ment [company]. It was buy-
ing a set of care-management
capabilities, and access to data
and intelligence that would be
very, very hard to replicate,”
said Cigna Chief Information
Officer Mark Boxer, who
drives the company’s AI de-
ployment.
Cigna is already using AI to
predict whether patients
might abuse or overdose on
prescription opioids. Another
Cigna tool, One Guide, pro-
vides personalized help to
PERSONAL FINANCE
fewer than 20 employees must
sign up for Medicare Part B at
65 for their primary insurance.
Their employer’s plan will pro-
vide only secondary coverage.
Sue Greeno, an advocate at
the Center for Medicare Advo-
cacy, said a client who works
for a small company decided
not to sign up for Medicare
Part B because he assumed he
was fully covered under his
employer’s plan. After having a
stroke, he discovered his em-
ployer’s plan paid only for sec-
ondary coverage, forcing him to
pay out-of-pocket for the bene-
to a request for comment. In
the past, spokespeople who
have responded to questions
about difficulties with Medi-
care’s enrollment rules have
said the agency follows the
laws governing the program.
Those who run afoul of the
rules can find themselves
without coverage for months—
which is what happened to
Sarah Truman, 67, of Phoenix.
A former teacher’s aide, she
chose to remain on her hus-
band’s insurance through his
former employer under Cobra
rather than sign up for Medi-
care. About two weeks before
the couple’s Cobra coverage
ended on Sept. 30, Ms. Tru-
man visited a Social Security
office to enroll in Medicare.
There, Ms. Truman said,
she “got the shock of my life”
when an agent told her that
she would not be able to sign
up for Medicare Part B until
health-insurance holders on
their benefit plans, appoint-
ments and health coaching.
The new Health Connect
360 system combines algo-
rithms that analyze data such
as clinical and pharmacy infor-
mation with predictive models
to generate recommendations
and ways to best engage a pa-
tient, whether through an app
or in person.
For example, collected data
from pharmacy claims or high
blood glucose level readings
from connected glucometers
could trigger an alert in
Health Connect 360 that a dia-
betic patient needs help to
stay on track with medica-
tions. After the system was
tested and partially deployed
this year, early results showed
success in helping diabetic pa-
tients, the company said.
Managing chronic condi-
tions is much less expensive
than engaging in some kind of
corrective procedure, said
Matthew Josefowicz, chief ex-
ecutive of research and advi-
sory firm Novarica Inc.
“Across the health-care in-
dustry, as with every industry,
the incredible growth in data
availability and ability to com-
municate enables new kinds of
interventions that were just
too cost-prohibitive to even
consider before,” Mr. Josefow-
icz said.
To keep the focus on its
core health business, Cigna re-
cently has been seeking a
buyer for a unit that sells life,
accident and disability-income
insurance to employers for
their workers, The Wall Street
Journal reported Tuesday.
Friday, December 13, 2019 | B5
require Social Security to no-
tify people age 65 who have
yet to claim retirement bene-
fits of Medicare’s enrollment
rules. The bill, which has bi-
partisan support, would also
allow people who delayed sign-
ing up for Part B and must use
the enrollment period between
Jan. 1 and March 31 to start
their coverage the month after
they enroll, rather than in July.
“With more than 10,000
Americans turning age 65 ev-
ery day, we must simplify the
Medicare enrollment process
and do more to help retirees
avoid costly, lifetime penal-
ties,” said Sen. Bob Casey (D.,
Pa.), a co-sponsor of the bill.
CAITLIN O’HARA FOR THE WALL STREET JOURNAL
Medicare advocates recom-
mend that people who plan to
stay on the job past 65 consult
with their State Health Insur-
ance Assistance Programs,
which provide free Medicare
help, or read the Medicare
publication “Enrolling in
Medicare Part A & Part B.”
People having enrollment
problems may request “equita-
ble relief,” which allows for
immediate Part B enrollment
without penalty. It generally
standard premium amount— requires proof that your fail-
fits Medicare would have pro- currently $135.50 a month— ure to enroll was due to an er-
vided. for every year of delay. Ms. ror, misrepresentation or inac-
If you have retiree medical Truman expects to pay an ad- tion on the government’s part,
insurance or Cobra coverage ditional 10%, or $13.55, to 20%, said Sue Greeno, an advocate
Once an employee stops or $27.10, for Part B each at the Center for Medicare Ad-
working, he or she has eight month for the rest of her life. vocacy, who recommends re-
months to sign up for Medicare “I don’t feel like I did any- cording the names of govern-
Part B. Those who miss this thing wrong,” said Ms. Tru- ment workers you speak with,
window must wait until be- man. “I wasn’t cheating the and the dates of those interac-
tween Jan. 1 and March 31 to system. I had insurance. It tions.
sign up. Their Part B benefits makes no sense to me that I Signing up for a Part D pre-
don’t go into effect until July. am being punished.” scription drug plan also gener-
Late-enrollment penalties may Advocates say more people ally isn’t automatic. Individu-
apply. are in the same situation. Ac- als can delay signing up for
After age 65, Cobra and re- cording to the Centers for Part D beyond age 65 without
tiree medical plans generally Medicare and Medicaid Ser- penalty if they have “credit-
provide secondary benefits. vices, about 700,000 of the able” prescription coverage
53.4 million people with Part B under another health plan, in-
paid late-enrollment penalties cluding under Cobra.
Jan. 1—and her coverage in 2017, up from 609,000 in Once that creditable cover-
wouldn’t start until July 2020. 2013. The average penalty was age is lost, individuals have 63
A diabetic who generally sees a 28% premium increase, days to buy a Part D plan or
her doctor every three which would mean an increase pay a penalty of 1% of a base
months, she says she now has of $37.94 a month above to- premium amount for every
trouble sleeping due to anxiety day’s standard premium. month they should have been
over what could happen if she “This is one of the top enrolled. Individuals who miss
has a serious medical problem. problems we see on our help- the 63-day window must wait
Late enrollment frequently line,” said Mr. Riccardi. to enroll between Oct. 15 and
triggers penalties that inflate In May, federal legislators Dec. 7. The coverage starts
Part B premiums by 10% of the introduced a bill that would Jan. 1.
Fidelity gives you clarity about where you stand
and can help answer retirement questions like:
• How much might I need to cover essential
and discretionary expenses?
• Am I on the right track to meet my goals?
• What can I do to strengthen my plan?
800.FIDELITY
Fidelity.com
IMPORTANT: The projections or other information generated by the Planning & Guidance Center’s Retirement Analysis regarding
the likelihood of various investment outcomes are hypothetical in nature, do not reflect actual investment results, and are not
guarantees of future results. Your results may vary with each use and over time.
Investing involves risk, including risk of loss.
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 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.

B6 | Friday, December 13, 2019 * **** THE WALL STREET JOURNAL.

BUSINESS & FINANCE

Boies’s Firm Names Next Leaders Elliott Faults Strategy

BY SARA RANDAZZO Supported by PG&E
Since its founding, the law BY ANDREW SCURRIA holders payments, significantly
firm Boies Schiller Flexner limiting dollars that PG&E has
LLP has largely been associ- Elliott Management Corp. available to spend on and invest
ated with one person: litigator is digging in against a PG&E in critical safety upgrades and
David Boies. Corp. shareholder strategy for infrastructure hardening.”
Now, the firm Mr. Boies co- ending the utility’s bank- California Gov. Gavin
founded in the 1990s is imple- ruptcy, saying demands of Cal- Newsom has raised concerns
menting a plan to ensure it can ifornia officials wouldn’t be about aspects of PG&E’s strat-
survive long past his tenure. satisfied under the proposal. egy and whether it adheres to
Boies Schiller this week The hedge-fund manager, a California law passed over
named for the first time man- part of a group of bondholders the summer to help investor-
aging partners who don’t have seeking to take over PG&E, owned utilities in the state
their names on the door. The said Thursday a restructuring handle future wildfire liabili-
MARK KAUZLARICH/BLOOMBERG NEWS

two new leaders, New York- strategy developed by share- ties.

based Nicholas Gravante Jr. holders, management and vic- He is expected to weigh in
and London-based Natasha tims of PG&E-linked wildfires by Friday on whether he sup-
Harrison, have been tapped to would jeopardize “both the ports PG&E’s proposal and the
guide the firm into its second immediate-term and long-term wildfire-victim settlement, and
generation. health of the company and its if he doesn’t, what changes he
The announcement comes critical infrastructure.” wants made. A spokesperson
after a tumultuous period for PG&E didn’t immediately re- for the governor said recently
Mr. Boies. He was most re- spond to a request for com- he wants the state to be able
cently in the news for filing a ment. The shareholders weren’t to appoint public board mem-
defamation lawsuit against The litigator took part in several well-known cases, including representing Al Gore in the Florida recount. immediately able to comment. bers at PG&E once it exits
longtime foe Alan Dershowitz The bondholders are fight-
and for his interactions, as re- leaders pushed back against other partnerships in recent in an antitrust trial against Mi- ing to keep their chapter 11
ported in the New York Times, that notion. years. Mr. Boies has long been crosoft Corp., representing Al takeover proposal viable after
with an apparent fraudster The headlines have been one of the primary sources of Gore in the 2000 Florida presi- wildfire victims that had pre-
Bondholders are
who said he had damning ma- “temporary distractions,” Mr. revenue for Boies Schiller and dential election recount and viously backed it reached a fighting to keep
terials related to the disgraced Gravante said, but he added his name is well known be- helping win same-sex marriage $13.5 billion settlement with
financier Jeffrey Epstein. that they aren’t the driving yond legal circles. rights in California. Mr. Boies PG&E and switched to sup-
their takeover
He has also come under force behind the transition. In- “I am confident that building said he has been working for porting the rival shareholder- proposal viable.
heat for his representation of stead, the changes are about on what we as a firm do very the past decade on the best backed strategy.
movie mogul Harvey Wein- preparing the 320-lawyer firm well, and learning from our way to hand off the litigation By settling with fire victims,
stein, who faces charges of for the eventual retirements of mistakes, mine included, that firm he founded in 1997. PG&E built critical creditor
sexual assault, and for his sup- Mr. Boies, 78 years old, and the next generation of leader- Mr. Gravante, 59, and Ms. support for its proposal, which bankruptcy and a “mecha-
port of defunct blood-testing Jonathan Schiller, 73. ship will not only equal but will Harrison, 46, said there are no would protect the ownership nism” to increase their author-
company Theranos Inc. “What you need is a will- exceed what we have accom- internal calls among the part- stakes of large shareholders ity within the utility if it fails
The bad press has led some ingness from them to hand it plished to date,” Mr. Boies said. ners to push Mr. Boies aside. such as Knighthead Capital to meet safety metrics.
clients to tell partners they over,” Ms. Harrison said. He rose to fame over the de- Mr. Boies reiterated that point Management LLC and Abrams Elliott said its plan would
are wary of giving new work Successfully moving a law cades for assignments, includ- and said he and Mr. Schiller Capital Management LP. overhaul governance and man-
to the firm, a person familiar firm away from its founders is ing his successful representa- plan to retire over the next Elliott’s proposal revolves agement, limit debt to a “mod-
with the matter said. The new a challenge that has vexed tion of the Justice Department several years. around using all but a sliver of erate” level and “maintain
PG&E equity to pay off wildfire strong cash flow for spending
debts, while the company and on and investment in critical
ADVERTISEMENT its shareholders favor relying wildfire safety mitigation.”
more heavily on debt financing. “It is clear that only a reor-
The Marketplace
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Raising more debt to cover
wildfire liabilities would protect
ganization plan that puts
PG&E in a meaningfully stron-
shareholders from taking a big- ger financial position than
ger hit. But PG&E would wind when it entered bankruptcy,
ANNOUNCEMENTS BUSINESS OPPORTUNITIES up with $10 billion more in debt while compensating wildfire
on its books than when it en- victims fairly and maintaining
 
 tered bankruptcy, leaving it as
“a sub-investment grade, junk-
true rate-neutrality, should be
allowed to move forward,” El-
 
   
 
  bond issuer,” Elliott said Thurs- liott portfolio manager Jeff
 
  
 

  
     

    
 
day. The hedge-fund manager
said servicing the new debt
Rosenbaum said.
—Peg Brickley
  
   
 


 

would eat up $1 billion annually

in “excess interest and share-
and Matt Wirz
contributed to this article.
       
   
    
  
            
  
 

  
 
 
  
   

         
  
  
 
Ad Firm Dentsu Names
 
     

   
 
      


 
 
    
      


 

 
Kelley to Americas Post
   
 
     
  BY SUZANNE VRANICA
     
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spark an outbreak and stop- Laura Whitlock said, referring
 # "" "  #*# ( 8 9 9 9  B4%" ##  "  *" $$  #A$" " 9 7*  8#"4 $* " "
" $ 6$"%#5  "# "  :#* -0 1010  "  %#  !#% 76  "  " "* #!## " 9    ping it from spreading. to the region in California
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An outbreak involving a ro- where most of the U.S. romaine
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             ! (% + '!! !   + (* ened at least eight people in Officials have improved

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&        
 
  
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           people in 23 states even never pinpointed all the

 
 
    ! 

"#$$%&&%''(  )"#$$%  * though the strains of E. coli are sources of a smaller romaine
different, according to the Cen- outbreak this year.
 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.

THE WALL STREET JOURNAL. Friday, December 13, 2019 | B7

MARKETS DIGEST
EQUITIES

Dow Jones Industrial Average S&P 500 Index Nasdaq Composite Index
Last Year ago Last Year ago Last Year ago
28132.05 s 220.75, or 0.79% Trailing P/E ratio 20.94 20.40 3168.57 s 26.94, or 0.86% Trailing P/E ratio * 24.36 21.33 8717.32 s 63.27, or 0.73% Trailing P/E ratio *† 26.15 21.17
High, low, open and close for each P/E estimate * 18.65 15.52 High, low, open and close for each P/E estimate * 19.18 16.45 High, low, open and close for each P/E estimate *† 23.15 18.65
trading day of the past three months. Dividend yield 2.23 2.30 trading day of the past three months. Dividend yield * 1.85 2.01 trading day of the past three months. Dividend yield *† 0.99 1.11
All-time high 28164.00, 11/27/19 All-time high 3168.57, 12/12/19 All-time high: 8717.32, 12/12/19

Current divisor 0.14744568353097

28000 3150 8750

65-day moving average

27500 3075 8550

27000 3000 8350

26500 2925 8150

Session high
DOWN UP
t

Session open Close 26000 2850 7950

Close Open 65-day moving average

t

65-day moving average

25500 2775 7750
Session low
Bars measure the point change from session's open
25000 2700 7550
Sept. Oct. Nov. Dec. Sept. Oct. Nov. Dec. Sept. Oct. Nov. Dec.
* Weekly P/E data based on as-reported earnings from Birinyi Associates Inc.; † Based on Nasdaq-100 Index

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* 886,605,702 12,166,042
Industrial Average 28224.95 27859.87 28132.05 220.75 0.79 28164.00 21792.20 14.4 20.6 12.4 share price of $2 and minimum after-hours volume of 50,000 shares. Adv. volume* 661,789,031 5,240,940
Transportation Avg 10888.60 10657.64 10789.41 110.52 1.03 11098.99 8637.15 11.5 17.7 5.0 Most-active issues in late trading Decl. volume* 216,807,140 6,562,618
Utility Average 856.63 846.56 849.68 -5.33 -0.62 880.50 692.00 11.9 19.2 9.2 Volume After Hours Issues traded 3,058 273
Company Symbol (000) Last Net chg % chg High Low
Total Stock Market 32492.67 32107.14 32406.55 263.95 0.82 32406.55 24126.04 19.1 26.0 11.3 Advances 1,888 136
VanEck Vectors Gold Miner GDX 14,539.2 27.46 -0.20 -0.72 27.69 27.46
Barron's 400 725.75 715.56 723.82 7.33 1.02 723.82 571.68 13.2 18.7 6.2 Declines 1,094 124
SPDR S&P 500 SPY 10,753.9 318.24 1.11 0.35 318.36 316.70
Unchanged 76 13
Nasdaq Stock Market iShares MSCI Emg Markets EEM 8,044.2 44.59 0.15 0.34 44.61 43.64 New highs 215 11
Nasdaq Composite 8745.82 8633.60 8717.32 63.27 0.73 8717.32 6192.92 23.3 31.4 17.2 Danaher DHR 6,563.2 151.30 ... unch. 151.35 151.05 New lows 21 5
Nasdaq 100 8493.11 8380.09 8466.89 64.28 0.77 8466.89 5899.35 25.1 33.8 20.2 GTT Communications GTT 5,475.8 12.02 0.01 0.08 12.61 12.01 Closing Arms† 0.54 1.28
Flex Glbl Upstrm Nat Rscs GUNR 5,300.0 32.57 -0.07 -0.22 32.57 32.57 Block trades* 5,597 106
S&P
General Electric GE 5,114.6 11.50 0.06 0.52 11.50 11.35
500 Index 3176.28 3138.47 3168.57 26.94 0.86 3168.57 2351.10 19.5 26.4 12.0 Nasdaq NYSE Arca
iShares China Large-Cap FXI 4,625.2 42.90 0.12 0.28 42.90 42.06
MidCap 400 2040.93 2012.95 2036.63 20.88 1.04 2036.63 1567.40 15.8 22.5 6.6 Total volume*2,398,605,351 343,908,905
SmallCap 600 1015.30 997.70 1009.59 10.55 1.06 1009.59 793.86 13.2 19.5 6.0 Percentage gainers… Adv. volume*1,681,826,050 254,408,359
Lloyds Banking Group ADR LYG 61.3 3.35 0.15 4.69 3.40 3.18 Decl. volume* 686,422,267 89,206,571
Other Indexes
Manitowoc MTW 88.3 18.00 0.73 4.23 18.00 17.27 Issues traded 3,316 1,610
Russell 2000 1654.07 1629.86 1644.81 12.89 0.79 1644.81 1266.93 14.8 22.0 6.2
Advances 2,079 1,207
NYSE Composite 13725.35 13581.08 13697.41 117.48 0.87 13697.41 10769.83 14.8 20.4 7.0 Hanover Insurance Grp THG 55.1 144.86 5.59 4.01 144.86 139.21
Declines 1,123 391
Value Line 545.32 537.84 544.13 6.00 1.11 552.12 446.06 8.7 15.2 1.8 iSh MSCI United Kingdom EWU 103.6 34.10 0.90 2.71 34.48 33.20
Unchanged 114 12
NYSE Arca Biotech 5093.06 5030.26 5058.97 21.23 0.42 5261.79 3890.37 12.5 19.9 17.4
Adobe ADBE 686.0 313.50 7.54 2.46 317.58 300.86
New highs 326 507
NYSE Arca Pharma 640.23 634.45 638.90 4.19 0.66 638.90 535.91 7.6 12.3 10.4 ...And losers New lows 65 58
KBW Bank 114.03 110.67 113.75 3.19 2.88 113.75 80.78 27.8 32.6 7.4 Kosmos Energy KOS 630.5 5.14 -0.19 -3.56 5.40 5.14 Closing Arms† 0.76 1.12
PHLX§ Gold/Silver 100.97 98.53 99.43 -0.13 -0.13 101.76 66.14 44.6 40.7 7.4 Oracle ORCL 1,223.3 55.01 -1.46 -2.59 56.60 54.45 Block trades* 11,413 1,770
PHLX§ Oil Service 75.19 72.58 74.67 2.29 3.17 102.39 59.66 -19.9 -7.4 -26.9 Vista Outdoor VSTO 224.9 7.32 -0.18 -2.40 7.50 7.32 * Primary market NYSE, NYSE American NYSE Arca only.
PHLX§ Semiconductor 1808.50 1757.68 1806.87 47.67 2.71 1806.87 1069.39 51.3 56.4 26.8 W&T Offshore WTI 71.1 4.50 -0.11 -2.39 4.67 4.50 †(TRIN) A comparison of the number of advancing and declining
issues with the volume of shares rising and falling. An
Cboe Volatility 15.55 13.60 13.94 -1.05 -7.00 36.07 11.54 -32.5 -45.2 3.3 SM Energy SM 106.0 9.37 -0.22 -2.29 9.59 9.37 Arms of less than 1 indicates buying demand; above 1

Nasdaq PHLX Sources: FactSet; Dow Jones Market Data 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 3195.60 28.32 0.89 16.9 Bill.com Holdings BILL 35.50 13.50 61.36 37.75 22.00 ... RiceBran Technologies RIBT 1.39 -0.69 -33.17 3.87 1.29 -59.5
DJ Global Index 424.27 3.07 0.73 20.9 Amneal Pharmaceuticals AMRX 5.04 1.56 44.83 16.85 2.27 -69.1 Camber Energy CEI 1.56 -0.49 -23.90 4965.63 0.50 -100.0
DJ Global ex U.S. 256.67 1.60 0.63 15.3 LMP Automotive Holdings LMPX 22.25 6.87 44.67 22.95 4.90 ... Aethlon Medical AEMD 1.99 -0.47 -19.02 25.65 1.83 -89.6
Americas DJ Americas 745.80 5.95 0.80 25.6 Assembly Biosciences ASMB 23.81 6.10 34.44 25.68 8.13 4.7 SMTC SMTX 2.90 -0.67 -18.77 5.98 2.02 -20.5
Brazil Sao Paulo Bovespa 112199.74 1235.87 1.11 27.7 Arlo Technologies ARLO 3.87 0.75 24.04 11.75 2.66 -59.9 Lovesac LOVE 11.81 -2.69 -18.55 46.79 11.38 -44.3
Canada S&P/TSX Comp 16946.90 7.29 0.04 18.3 Centrus Energy LEU 7.09 1.29 22.24 8.00 1.35 340.4 Forward Pharma ADR FWP 8.12 -1.48 -15.42 11.48 4.97 19.8
Mexico S&P/BMV IPC 43195.19 … Closed 3.7 Ciena CIEN 42.62 7.21 20.36 46.78 30.77 22.1 Q&K Intl ADR QK 11.13 -1.97 -15.04 20.44 10.43 ...
Chile Santiago IPSA 3443.24 21.84 0.64 –8.5 Diebold Nixdorf DBD 9.30 1.57 20.31 14.66 2.41 243.2 Taitron Components TAIT 3.24 -0.51 -13.55 7.65 1.63 79.1
0.33 Innovative Sols & Support ISSC 5.45 0.91 20.04 5.94 2.02 168.5 Owens & Minor OMI 6.15 -0.93 -13.14 8.43 2.43 -9.0
EMEA Stoxx Europe 600 407.57 1.35 20.7
0.48 PhaseBio Pharmaceuticals PHAS 3.86 0.59 18.04 16.65 2.56 5.8 Spectrum Pharmaceuticals SPPI 8.70 -1.30 -13.00 12.77 6.22 -24.9
Eurozone Euro Stoxx 399.52 1.91 21.6
Belgium Bel-20 3931.65 10.80 0.28 21.2 Lumber Liquidators LL 11.18 1.70 17.93 14.44 6.59 10.0 Aquestive Therapeutics AQST 6.70 -1.00 -12.99 10.00 2.95 -16.0
Denmark OMX Copenhagen 20 1117.24 2.26 0.20 25.3 Franchise Group FRG 17.30 2.59 17.57 17.30 8.85 44.0 Ikonics IKNX 5.29 -0.74 -12.23 9.20 5.05 -40.8
France CAC 40 5884.26 23.39 0.40 24.4 Calyxt CLXT 7.09 1.04 17.19 19.30 3.55 -25.0 Direxion S&P Oil & Gas Br DRIP 69.89 -9.41 -11.87 130.85 37.15 5.3
Germany DAX 13221.64 74.90 0.57 25.2 LAIX ADR LAIX 2.81 0.38 15.64 14.10 2.01 -68.4 Direxion Natl Gas Bear 3x GASX 53.60 -7.19 -11.83 94.22 24.50 44.7
0.08 15.6 Spring Bk Pharmaceuticals SBPH 3.95 0.53 15.50 11.90 2.75 -60.7 Akero Therapeutics AKRO 20.28 -2.72 -11.83 30.30 16.06 ...
Israel Tel Aviv 1691.56 1.30
Italy FTSE MIB 23390.95 235.30 1.02 27.7
Netherlands AEX 599.71 0.75 0.13 22.9
Most Active Stocks Volume Movers Ranked by change from 65-day average*
Russia RTS Index 1496.96 33.81 2.31 40.1 Volume % chg from Latest Session 52-Week Volume % chg from Latest Session 52-Week
Company Symbol (000) 65-day avg Close % chg High Low Company Symbol (000) 65-day avg Close % chg High Low
South Africa FTSE/JSE All-Share 55824.08 57.63 0.10 5.9
Spain IBEX 35 9468.50 76.00 0.81 10.9 iShares MSCI Emg Markets EEM 132,168 139.3 44.44 1.74 44.84 38.04 Forward Pharma ADR FWP 305 3017 8.12 -15.42 11.48 4.97
Sweden OMX Stockholm 667.55 4.33 0.65 27.1 General Electric GE 99,851 93.8 11.44 4.28 11.84 6.51 KraneShares Elc Vehicles KARS 160 2464 23.15 1.60 23.21 17.22
Switzerland Swiss Market 10451.36 46.05 0.44 24.0 SPDR S&P 500 SPY 95,890 61.7 317.13 0.86 317.99 233.76 Brigham Minerals MNRL 5,639 2341 18.30 -1.51 23.29 17.51
2.03 20.6 Advanced Micro Devices AMD 86,390 70.2 42.59 7.90 42.62 16.03 ProShs UltrShrt Semicon SSG 277 1714 15.55 -5.10 47.52 15.55
Turkey BIST 100 110114.66 2192.98
0.79 8.1
Danaher DHR 73,715 1184.1 151.30 1.09 153.02 94.59 Tuscan Holdings II THCA 501 1564 9.82 0.31 10.00 9.69
U.K. FTSE 100 7273.47 57.22
U.K. FTSE 250 20793.03 145.92 0.71 18.8 Finl Select Sector SPDR XLF 68,418 47.9 30.82 1.95 30.91 22.05 iPath Bloom Cocoa Sub TR NIB 739 1549 29.51 -0.99 31.29 23.77
Chesapeake Energy CHK 65,976 -15.3 0.78 5.03 3.57 0.55 Flex Glbl Upstrm Nat Rscs GUNR 6,236 1489 32.64 0.80 33.78 28.03
Asia-Pacific
VanEck Vectors Gold Miner GDX 65,535 11.4 27.66 -0.18 30.96 19.90 Global X Copper Miners COPX 749 1266 19.81 3.12 23.54 15.83
Australia S&P/ASX 200 6708.80 –43.84 –0.65 18.8
Bank of America BAC 64,812 28.6 34.68 3.09 34.81 22.66 Invsc DWA Healthcare Mom PTH 85 1210 90.54 0.10 91.95 64.36
China Shanghai Composite 2915.70 –8.72 –0.30 16.9
iShares China Large-Cap FXI 62,262 163.6 42.78 1.91 45.96 37.66 Danaher DHR 73,715 1184 151.30 1.09 153.02 94.59
Hong Kong Hang Seng 26994.14 348.71 1.31 4.4
* Volumes of 100,000 shares or more are rounded to the nearest thousand * Common stocks priced at $2 a share or more with an average volume over 65 trading days of at least
India S&P BSE Sensex 40581.71 169.14 0.42 12.5 5,000 shares =Has traded fewer than 65 days
Japan Nikkei Stock Avg 23424.81 32.95 0.14 17.0
Singapore Straits Times 3194.67 21.78 0.69 4.1 Track the Markets
South Korea Kospi 2137.35 31.73 1.51 4.7 Compare the performance of selected CURRENCIES & COMMODITIES
Taiwan TAIEX 11836.42 135.65 1.16 21.7 global stock indexes, bond ETFs,
Thailand SET 1563.85 12.03 0.78 0.00
currencies and commodities at Currencies
WSJ.com/TrackTheMarkets
Sources: FactSet; Dow Jones Market Data
U.S.-dollar foreign-exchange rates in late New York trading
US$vs, US$vs,
Thurs YTDchg Thurs YTDchg
CREDIT MARKETS Country/currency in US$ per US$ (%) Country/currency
Vietnam dong
in US$ per US$ (%)
.00004315 23175 –0.1
Americas
Argentina peso .0167 59.7257 58.6 Europe
Consumer Rates and Returns to Investor Benchmark
Treasury Yields
yield curve Forex Race Brazil real .2444 4.0909 5.4 Czech Rep. koruna .04361 22.930 2.3

U.S. consumer rates Selected rates and

Yield toRates
maturity of current bills, Yen, euro vs. dollar; dollar vs. Canada dollar
Chile peso
.7585 1.3185
.001302 768.10
–3.3
10.7
Denmark krone
Euro area euro
.1490 6.7135 3.1
1.1132 .8984 3.0
notes and bonds major U.S. trading partners .000297 3372.00 Hungary forint .003377 296.15 5.8
New car loan Colombiapeso 3.8
A consumer rate against its
Ecuador US dollar 1 1 unch Iceland krona .008141 122.84 5.7
benchmark over the past year 4.00% Mexico peso .0525 19.0550 –3.0 Norway krone .1101 9.0791 5.1
Bankrate.com avg†: 4.44% 8%
Uruguay peso .02633 37.9800 17.3 Poland zloty .2597 3.8503 2.9
First Command Bank 2.99% Russia ruble .01594 62.741 –9.4
One year ago 3.00 s Asia-Pacific
5.60% Fort Worth, TX 888-763-7600 4 Sweden krona .1065 9.3933 6.1
t Yen Australian dollar .6910 1.4472 2.1
t Think Mutual Bank 2.99% Switzerland franc 1.0155 .9847 0.3
5.20 2.00 China yuan .1424 7.0206 2.1
0 Turkey lira .1727 5.7912 9.5
Prime rate Rochester, MN 800-288-3425 Hong Kong dollar .1281 7.8036 –0.4
Ukraine hryvnia .0424 23.5650 –15.0
India rupee .01417 70.557 1.4
3.19%
t
4.80 PNC Bank 1.00 –4 s UK pound 1.3164 .7596 –3.1
s Indonesia rupiah .0000713 14025 –2.5
Washington, DC 888-PNC-BANK Tradeweb ICE Thursday Close WSJ Dollar index Japan yen .009149 109.30 –0.3 Middle East/Africa
t Euro
4.40 Cambridge Savings Bank 3.24% 0.00 –8 Kazakhstan tenge .002600 384.61 0.03 Bahrain dinar 2.6524 .3770 0.02
New car loan
Cambridge, MA 888-418-5626 1 3 6 1 2 3 5 710 30 Macau pataca .1244 8.0403 –0.4 Egypt pound .0620 16.1180 –10.0
4.00 2019 Malaysia ringgit .2404 4.1600 0.7 Israel shekel .2873 3.4806 –6.9
First Savings Bank of Hegewisch 3.50% month(s) years
J FMAM J J A S O N D New Zealand dollar .6598 1.5156 1.8 Kuwait dinar 3.2943 .3036 0.1
Chicago, IL 773-646-4200 maturity Pakistan rupee .00645 155.033 10.9 Oman sul rial 2.5976 .3850 –0.01
2019
Sources: Tradeweb ICE U.S. Treasury Close; Tullett Prebon; Dow Jones Market Data Philippines peso .0198 50.551 –3.7 Qatar rial .2747 3.640 0.1
Yield/Rate (%) 52-Week Range (%) 3-yr chg Singapore dollar .7385 1.3541 –0.6 Saudi Arabia riyal .2667 3.7502 –0.04
Interest rate Last (l)Week ago Low 0 2 4 6 8 High (pct pts)
Corporate Borrowing Rates and Yields South Korea won .0008526 1172.89 5.3 South Africa rand .0690 14.4973 0.9
Federal-funds rate target 1.50-1.75 1.50-1.75 1.75 l 2.25 1.25 Sri Lanka rupee .0055282 180.89 –1.1
Yield (%) 52-Week Total Return (%) Taiwan dollar .03307 30.237 –1.1 Close Net Chg % Chg YTD%Chg
Prime rate* 4.75 4.75 4.75 l 5.50 1.25 Bond total return index Close Last Week ago High Low 52-wk 3-yr Thailand baht .03312 30.190 –6.6 WSJ Dollar Index 90.33 0.06 0.07 0.74
Libor, 3-month 1.89 1.89 1.89 l 2.82 0.93
U.S. Treasury, Barclays 2267.760 1.850 1.760 2.850 1.510 8.19 3.41 Sources: Tullett Prebon, Dow Jones Market Data
Money market, annual yield 0.57 0.57 0.53 l 0.78 0.31
2.280 18.66
Five-year CD, annual yield 1.41 1.42 1.41 l 2.07 0.19 U.S. Treasury Long, Barclays 4033.840 2.210 3.140 1.880 7.89
Commodities
30-year mortgage, fixed† 3.85 3.81 3.60 l 4.70 -0.28 Aggregate, Barclays 2118.360 2.350 2.310 3.470 2.060 9.54 4.09 Thursday 52-Week YTD
Pricing trends on someClose
raw materials, or commodities
Net chg % Chg High Low % Chg % chg
15-year mortgage, fixed† 3.33 3.26 3.14 l 4.04 0.02 Fixed-Rate MBS, Barclays 2136.380 2.520 2.550 3.550 2.200 7.12 3.20
Jumbo mortgages, $484,350-plus† 4.21 4.15 4.15 l 4.72 -0.38 DJ Commodity 627.90 5.37 0.86 639.65 572.87 2.69 9.61
High Yield 100, ICE BofAML 3166.028 4.663 5.015 7.825 4.663 10.52 5.79
Five-year adj mortgage (ARM)† 4.35 4.14 3.94 l 4.78 0.77 TR/CC CRB Index 182.92 1.42 0.78 189.66 167.89 -0.06 7.72
Muni Master, ICE BofAML 565.504 1.616 1.638 2.637 1.459 7.74 4.40 Crude oil, $ per barrel 59.18 0.42 0.71 66.30 42.53 12.55 30.32
New-car loan, 48-month 4.44 4.41 4.41 l 4.81 1.43
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 873.795 4.886 5.003 7.085 4.886 13.33 6.07 Natural gas, $/MMBtu 2.328 0.085 3.79 4.124 2.070 -43.55 -20.82
banks.† Excludes closing costs.
Sources: FactSet; Dow Jones Market Data; Bankrate.com Sources: J.P. Morgan; S&P Dow Jones Indices; Bloomberg Barclays; ICE BofAML Gold, $ per troy oz. 1466.70 -2.70 -0.18 1550.30 1237.00 18.03 14.74

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B8 | Friday, December 13, 2019 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'20 371.50 380.25 371.25 377.75 6.50 796,957 Cotton (ICE-US)-50,000 lbs.; cents per lb. British Pound (CME)-£62,500; $ per £
Oats (CBT)-5,000 bu.; cents per bu. March 65.76 67.38 65.57 67.17 1.29 118,047 Dec 1.3199 1.3231 1.3051 1.3139 –.0069 128,206
Contract Open March 293.00 303.75 293.00 302.75 9.00 5,325 May 66.92 68.32 66.66 68.11 1.16 34,821 March'20 1.3239 1.3278 1.3091 1.3179 –.0070 136,627
Open High hi lo Low Settle Chg interest May 291.25 299.75 289.50 299.50 9.50 262 Orange Juice (ICE-US)-15,000 lbs.; cents per lb. Swiss Franc (CME)-CHF 125,000; $ per CHF
Copper-High (CMX)-25,000 lbs.; $ per lb. Jan 98.40 98.50 97.10 97.45 –.80 12,493 Dec 1.0178 1.0196 1.0127 1.0145 –.0043 29,632
Soybeans (CBT)-5,000 bu.; cents per bu.
Dec 2.7840 2.8075 2.7605 2.7895 0.0070 2,411 March 101.20 101.35 99.90 100.10 –.95 4,967 March'20 1.0249 1.0267 1.0198 1.0216 –.0045 47,333
Jan 893.00 901.75 888.25 898.25 4.75 241,265
March'20 2.7945 2.8145 2.7635 2.7965 0.0070 151,078 March 907.50 916.00 902.50 912.50 4.50 281,621 Australian Dollar (CME)-AUD 100,000; $ per AUD
Gold (CMX)-100 troy oz.; $ per troy oz. Soybean Meal (CBT)-100 tons; $ per ton. Interest Rate Futures Dec .6873 .6913 .6868 .6900 .0011 87,126
Dec 1475.10 1484.60 1463.70 1466.70 –2.70 728 March'20 .6887 .6929 .6883 .6914 .0010 110,957
Dec 294.20 294.60 292.90 292.60 –.70 439
Feb'20 1479.20 1491.60 1468.20 1472.30 –2.70 501,128 Ultra Treasury Bonds (CBT) - $100,000; pts 32nds of 100% Mexican Peso (CME)-MXN 500,000; $ per MXN
March'20 299.50 301.80 297.40 298.70 –.60 160,098
April 1484.20 1496.70 1474.20 1477.90 –2.70 92,174 Dec 186-250 188-010 183-170 184-190 –3-15.0 2,778 Dec .05228 .05251 s .05224 .05239 .00010 134,455
Soybean Oil (CBT)-60,000 lbs.; cents per lb.
June 1490.70 1502.20 1479.90 1483.10 –2.70 63,367 March'20 186-290 187-060 182-200 183-230 –3-16.0 1,216,526 March'20 .05170 .05192 s .05162 .05180 .00012 216,431
Dec 31.64 31.95 31.27 32.03 .80 43
Aug 1494.20 1506.90 1485.10 1488.40 –2.70 17,679 Treasury Bonds (CBT)-$100,000; pts 32nds of 100% Euro (CME)-€125,000; $ per €
March'20 31.69 32.54 s 31.69 32.51 .80 205,231
Dec 1511.20 1514.00 1494.10 1497.50 –2.60 10,409 Dec 159-190 159-230 156-300 157-180 –2-04.0 10,354 Dec 1.1135 1.1156 1.1104 1.1115 –.0027 197,982
Palladium (NYM) - 50 troy oz.; $ per troy oz. Rough Rice (CBT)-2,000 cwt.; $ per cwt.
Jan 1241.50 1245.00 1237.00 1243.00 … 6,053 March'20 158-240 159-000 156-050 156-250 –2-04.0 990,256 March'20 1.1204 1.1226 1.1175 1.1185 –.0027 398,307
Dec 1915.00 1915.00 s 1915.00 1914.10 26.80 44 Treasury Notes (CBT)-$100,000; pts 32nds of 100%
March 1264.00 1269.00 1260.50 1267.50 1.00 3,459
March'20 1886.40 1919.90 1883.70 1914.20 29.10 23,925 129-085 129-130 128-080 128-140 –27.5 22,282
June 1881.90 1912.70 s 1881.00 1908.70 29.00 2,201
Wheat (CBT)-5,000 bu.; cents per bu. Dec Index Futures
Dec 529.75 544.00 528.75 539.25 8.50 161 March'20 129-080 129-140 128-050 128-125 –28.5 3,600,378
Sept 1903.60 1903.60 s 1903.60 1903.20 29.10 135 5 Yr. Treasury Notes (CBT)-$100,000; pts 32nds of 100% Mini DJ Industrial Average (CBT)-$5 x index
Platinum (NYM)-50 troy oz.; $ per troy oz. March'20 518.00 534.25 516.25 530.25 11.00 203,086
Wheat (KC)-5,000 bu.; cents per bu. Dec 118-167 118-220 118-002 118-042 –13.2 24,794 Dec 27933 28230 s 27856 28131 207 96,186
Dec ... ... ... 942.70 5.30 23
March 428.00 446.50 428.00 442.75 12.00 160,132 March'20 118-262 118-305 118-067 118-112 –14.7 4,167,387 March'20 27927 28225 s 27853 28130 211 11,642
Jan'20 941.60 951.40 937.30 944.80 5.30 64,553
May 435.50 453.75 435.50 450.25 12.50 44,724 2 Yr. Treasury Notes (CBT)-$200,000; pts 32nds of 100% S&P 500 Index (CME)-$250 x index
Silver (CMX)-5,000 troy oz.; $ per troy oz. Dec 107-172 107-196 107-129 107-147 –3.0 33,956 Dec 3146.70 3175.50 s 3138.00 3167.90 24.80 28,904
Dec 16.830 17.045 16.740 16.845 0.101 656 Cattle-Feeder (CME)-50,000 lbs.; cents per lb.
Jan 142.775 143.025 141.775 142.550 –.225 18,169 March'20 107-232 107-254 107-175 107-195 –3.8 3,498,662 March'20 3143.50 3179.00 s 3143.00 3171.00 25.20 1,085
March'20 16.930 17.185 16.820 16.949 0.100 159,918
Crude Oil, Light Sweet (NYM)-1,000 bbls.; $ per bbl. March 143.525 143.650 142.600 143.450 –.225 15,569 30 Day Federal Funds (CBT)-$5,000,000; 100 - daily avg. Mini S&P 500 (CME)-$50 x index
Cattle-Live (CME)-40,000 lbs.; cents per lb. Dec 98.4425 98.4475 98.4425 98.4425 .0025 263,399 Dec 3144.00 3177.50 s 3137.25 3168.00 25.00 2,474,973
Jan 58.88 59.72 58.75 59.18 0.42 235,868
Dec 120.400 120.650 119.950 120.425 –.150 12,081 Jan'20 98.4350 98.4450 98.4350 98.4400 .0050 443,840 March'20 3146.75 3180.25 s 3140.25 3171.00 25.25 530,280
Feb 58.77 59.61 58.67 59.06 0.41 348,901
March 58.50 59.30 58.40 58.76 0.40 259,108 Feb'20 125.100 125.550 124.650 125.100 –.225 167,481 10 Yr. Del. Int. Rate Swaps (CBT)-$100,000; pts 32nds of 100% Mini S&P Midcap 400 (CME)-$100 x index
April 58.14 58.90 58.03 58.36 0.38 122,380 Hogs-Lean (CME)-40,000 lbs.; cents per lb. Dec 97-250 97-310 96-210 96-260 –1-01.0 64,622 Dec 2016.30 2042.60 s 2012.30 2037.60 21.30 76,138
June 57.25 58.01 57.20 57.53 0.38 199,473 Dec 60.700 61.050 60.500 61.000 .300 12,348 March'20 102-150 102-205 101-085 101-125 –1-03.0 37,949 March'20 2023.70 2045.30 s 2014.80 2040.60 21.90 2,668
Dec 54.98 55.60 54.90 55.28 0.39 205,097 Feb'20 67.700 69.250 67.200 68.650 .925 118,319 Eurodollar (CME)-$1,000,000; pts of 100% Mini Nasdaq 100 (CME)-$20 x index
NY Harbor ULSD (NYM)-42,000 gal.; $ per gal. Lumber (CME)-110,000 bd. ft., $ per 1,000 bd. ft. Dec 98.1025 98.1075 98.0975 98.0975 –.0050 1,557,691 Dec 8407.50 8497.00 s 8381.00 8465.25 59.75 197,684
Jan 1.9316 1.9657 1.9295 1.9508 .0220 90,916 Jan 396.80 403.10 396.20 397.80 1.20 1,938 March'20 98.2850 98.2950 98.2400 98.2500 –.0300 1,592,158 March'20 8431.75 8522.00 s 8405.75 8491.50 61.50 19,988
Feb 1.9307 1.9642 1.9285 1.9500 .0219 77,589 March 406.50 411.80 405.70 407.50 1.70 858 June 98.3700 98.3900 98.3100 98.3250 –.0450 1,294,089 Mini Russell 2000 (CME)-$50 x index
Gasoline-NY RBOB (NYM)-42,000 gal.; $ per gal. Milk (CME)-200,000 lbs., cents per lb. Dec 98.4500 98.4750 98.3500 98.3750 –.0700 1,213,611 Dec 1635.00 1657.10 s 1628.20 1645.70 11.80 469,520
Jan 1.6300 1.6532 1.6239 1.6283 .0022 104,872 Dec 19.46 19.47 19.41 19.43 .06 4,559 March'20 1637.90 1660.00 s 1631.10 1648.60 12.00 35,978
Feb 1.6370 1.6587 1.6307 1.6350 .0028 81,619 Jan'20 18.22 18.30 18.03 18.24 .05 4,445 Currency Futures Mini Russell 1000 (CME)-$50 x index
Natural Gas (NYM)-10,000 MMBtu.; $ per MMBtu. Cocoa (ICE-US)-10 metric tons; $ per ton. Dec 1751.70 1754.20 s 1734.50 1749.80 13.60 7,217
Jan 2.248 2.348 2.244 2.328 .085 253,513 Dec 2,609 2,609 2,609 2,609 –47 41 Japanese Yen (CME)-¥12,500,000; $ per 100¥ March'20 1732.10 1752.00 s 1732.10 1751.30 14.20 915
Feb 2.247 2.341 2.244 2.320 .077 240,629 March'20 2,570 2,570 2,512 2,521 –47 128,206 Dec .9214 .9222 .9137 .9148 –.0071 69,942 U.S. Dollar Index (ICE-US)-$1,000 x index
March 2.206 2.290 2.200 2.271 .071 238,669 Coffee (ICE-US)-37,500 lbs.; cents per lb. March'20 .9268 .9277 .9191 .9202 –.0072 125,175 Dec 97.07 97.52 97.03 97.38 .33 31,877
April 2.153 2.217 2.144 2.200 .052 121,001 Dec 135.20 137.00 s 134.85 135.90 2.05 303 Canadian Dollar (CME)-CAD 100,000; $ per CAD March'20 96.64 97.10 96.60 96.96 .34 15,942
May 2.171 2.230 2.161 2.214 .046 103,309 March'20 135.70 139.00 s 135.00 137.25 2.05 122,933 Dec .7589 .7597 .7580 .7586 –.0009 92,053
Oct 2.306 2.354 2.298 2.340 .038 71,590 Sugar-World (ICE-US)-112,000 lbs.; cents per lb. March'20 .7595 .7602 .7584 .7590 –.0010 79,797 Source: FactSet
March 13.38 13.55 13.34 13.52 .10 456,544
Agriculture Futures May 13.48 13.59 13.42 13.58 .08 205,556

Corn (CBT)-5,000 bu.; cents per bu.

Sugar-Domestic (ICE-US)-112,000 lbs.; cents per lb.
March 25.85 25.85 25.85 25.90 –.10 2,432
Bonds | WSJ.com/bonds
Dec 358.25 368.75 358.25 367.00 9.25 807 May 26.20 26.20 26.20 26.20 –.05 1,525
Tracking Bond Benchmarks
Return on investment and spreads over Treasurys and/or yields paid to investors compared with 52-week
Cash Prices WSJ.com/commodities Thursday, December 12, 2019 highs and lows for different types of bonds
These prices reflect buying and selling of a variety of actual or “physical” commodities in the marketplace— Total Total
return YTD total Yield (%) return YTD total Yield (%)
separate from the futures price on an exchange, which reflects what the commodity might be worth in future close return (%) Index Latest Low High close return (%) Index Latest Low High
months. Mortgage-Backed Bloomberg Barclays
Thursday Thursday Thursday Broad Market Bloomberg Barclays
Platinum,Engelhard fabricated n.a. Wheat,No.2 soft red,St.Louis-bp,u 5.9200 2118.36 8.4 U.S. Aggregate 2.350 2.060 3.470 2136.38 6.0 Mortgage-Backed 2.520 2.200 3.550
Energy Palladium,Engelhard industrial 1943.0 Wheat - Hard - KC (USDA) $ per bu-u 4.4025
Palladium,Engelhard fabricated n.a. Wheat,No.1soft white,Portld,OR-u 5.9350 U.S. Corporate Indexes Bloomberg Barclays 2089.90 5.5 Ginnie Mae (GNMA) 2.500 2.090 3.510
Coal,C.Aplc.,12500Btu,1.2SO2-r,w 61.900
Coal,PwdrRvrBsn,8800Btu,0.8SO2-r,w 11.800 Aluminum, LME, $ per metric ton *1751.5 3120.59 13.8 U.S. Corporate 2.930 2.770 4.300 1258.57 6.1 Fannie mae (FNMA) 2.530 2.250 3.560
Copper,Comex spot 2.7895 Food
Metals Iron Ore, 62% Fe CFR China-s 93.8 Beef,carcass equiv. index 2873.50 9.5 Intermediate 2.530 2.360 4.020 1935.03 6.2 Freddie Mac (FHLMC) 2.530 2.230 3.590
Shredded Scrap, US Midwest-s,m 271 choice 1-3,600-900 lbs.-u 192.53
Gold, per troy oz Steel, HRC USA, FOB Midwest Mill-s 558 4514.70 23.1 Long term 3.640 3.480 4.930 565.50 7.0 Muni Master 1.616 1.459 2.637
select 1-3,600-900 lbs.-u 175.95
Engelhard industrial 1479.00 Broilers, National comp wtd. avg.-u,w 0.8259 634.46 10.1 Double-A-rated 2.430 2.190 3.640 398.64 7.7 7-12 year 1.579 1.386 2.632
Engelhard fabricated n.a.
Fibers and Textiles
Butter,AA Chicago 1.9550
Handy & Harman base 1467.80 Burlap,10-oz,40-inch NY yd-n,w 0.5200 Cheddar cheese,bbl,Chicago 176.00 823.87 15.4 Triple-B-rated 3.220 3.110 4.670 452.75 8.9 12-22 year 1.918 1.741 3.054
Handy & Harman fabricated 1629.26 Cotton,1 1/16 std lw-mdMphs-u 0.6467 Cheddar cheese,blk,Chicago 185.75
LBMA Gold Price AM *1468.05 Cotlook 'A' Index-t *75.35 Milk,Nonfat dry,Chicago lb. 125.75
High Yield Bonds ICE Data Services 440.75 9.9 22-plus year 2.396 2.185 3.548
LBMA Gold Price PM *1466.80 Hides,hvy native steers piece fob-u 38.000 Coffee,Brazilian,Comp 1.3081 462.08 13.2 High Yield Constrained 5.563 5.563 8.107 Global Government J.P. Morgan†
Krugerrand,wholesale-e 1526.72 Wool,64s,staple,Terr del-u,w n.a. Coffee,Colombian, NY 1.6689
Maple Leaf-e 1541.40 Eggs,large white,Chicago-u 1.3250 425.62 6.5 Triple-C-rated 11.888 10.558 13.784 583.28 6.1 Global Government 1.050 0.690 1.680
American Eagle-e 1541.40 Grains and Feeds Flour,hard winter KC 13.60
Mexican peso-e 1777.97 Hams,17-20 lbs,Mid-US fob-u 0.89 3166.03 13.1 High Yield 100 4.663 4.663 7.825 803.65 3.9 Canada 1.720 1.260 2.210
Barley,top-quality Mnpls-u n.a.
Austria crown-e 1441.93 Bran,wheat middlings, KC-u 134 Hogs,Iowa-So. Minnesota-u 61.23
417.24 12.8 Global High Yield Constrained 5.341 5.341 7.561 401.57 7.3 EMU§ 0.496 0.109 1.261
Austria phil-e 1541.40 Corn,No. 2 yellow,Cent IL-bp,u 3.6700 Pork bellies,12-14 lb MidUS-u 1.0950
Silver, troy oz. Corn gluten feed,Midwest-u,w 129.0 Pork loins,13-19 lb MidUS-u 0.8856 326.59 10.6 Europe High Yield Constrained 2.823 2.749 4.869 763.19 6.1 France 0.270 -0.160 0.880
Engelhard industrial 17.0000 Corn gluten meal,Midwest-u,w 398.1 Steers,Tex.-Okla. Choice-u n.a.
Engelhard fabricated n.a. Cottonseed meal-u,w 253 Steers,feeder,Okla. City-u,w 158.00 U.S Agency Bloomberg Barclays 538.31 3.7 Germany -0.140 -0.590 0.340
Handy & Harman base 16.8750 Hominy feed,Cent IL-u,w 108 5.7
Fats and Oils 1762.63 U.S Agency 1.930 1.700 2.990 297.78 2.0 Japan 0.200 -0.070 0.420
Handy & Harman fabricated 21.0940 Meat-bonemeal,50% pro Mnpls-u,w 173
LBMA spot price *£12.6700 Oats,No.2 milling,Mnpls-u 3.2025 Corn oil,crude wet/dry mill wtd. avg.-u,w 30.5000 1555.09 4.2 10-20 years 1.820 1.620 2.890 598.69 4.4 Netherlands -0.020 -0.490 0.460
(U.S.$ equivalent) *16.6600 Rice, Long Grain Milled, No. 2 AR-u,w 25.25 Grease,choice white,Chicago-h 0.2300
Coins,wholesale $1,000 face-a 12434 Sorghum,(Milo) No.2 Gulf-u 7.2688 Lard,Chicago-u n.a. 3814.33 12.7 20-plus years 2.420 2.010 3.440 1003.61 7.2 U.K. 1.150 0.730 1.650
Other metals SoybeanMeal,Cent IL,rail,ton48%-u 295.20 Soybean oil,crude;Centl IL-u 0.3181
0.2625 2715.08 10.7 Yankee 2.710 2.470 3.970 873.80 13.4 Emerging Markets ** 4.886 4.886 7.085
LBMA Platinum Price PM *926.0 Soybeans,No.1 yllw IL-bp,u 8.8300 Tallow,bleach;Chicago-h
Platinum,Engelhard industrial 947.0 Wheat,Spring14%-pro Mnpls-u 6.6300 Tallow,edible,Chicago-u n.a. *Constrained indexes limit individual issuer concentrations to 2%; the High Yield 100 are the 100 largest bonds † In local currency § Euro-zone bonds
** EMBI Global Index Sources: ICE Data Services; Bloomberg Barclays; J.P.Morgan
KEY TO CODES: A=ask; B=bid; BP=country elevator bids to producers; C=corrected; E=Manfra,Tordella & Brooks; G=ICE; H=American Commodities Brokerage Co;
M=monthly; N=nominal; n.a.=not quoted or not available; R=SNL Energy; S=Platts-TSI; T=Cotlook Limited; U=USDA; W=weekly, Z=not quoted. *Data as of 12/11
Source: WSJ Market Data Group
Global Government Bonds: Mapping Yields
Yields and spreads over or under U.S. Treasurys on benchmark two-year and 10-year government bonds in
Exchange-Traded Portfolios | WSJ.com/ETFresearch selected other countries; arrows indicate whether the yield rose(s) or fell (t) in the latest session
Closing Chg YTD Country/ Yield (%) Spread Under/Over U.S. Treasurys, in basis points
Largest 100 exchange-traded funds, latest session ETF Symbol Price (%) (%) Coupon (%) Maturity, in years Latest(l)-2 -1 0 1 2 3 4 Previous Month ago Year ago Latest Prev Year ago

Thursday, December 12, 2019 Closing Chg YTD SPDR DJIA Tr DIA 281.95 0.80 20.9 1.500 U.S. 2 1.675 s l 1.605 1.658 2.779
ETF Symbol Price (%) (%) SPDR S&PMdCpTr MDY 371.86 1.08 22.9 1.750 10 1.902 s l 1.800 1.918 2.914
Closing Chg YTD
ETF Symbol Price (%) (%) SPDR S&P 500 SPY 317.13 0.86 26.9
iShMSCI EAFE EFA 69.18 0.67 17.7 2.000 Australia 2 0.759 t l 0.810 0.870 1.957 -79.5 -82.2
SPDR S&P Div SDY 107.67 0.94 20.3 -91.6
CnsmrDiscSelSector XLY 123.06 0.88 24.3 iShMSCI EAFE SC SCZ 62.22 0.27 20.1
TechSelectSector XLK 88.90 1.07 43.4 2.750 10 1.141 t l 1.164 1.294 2.457 -63.6 -45.7
CnsStapleSelSector XLP 62.56 –0.08 23.2 iShMSCIEmgMarkets EEM 44.44 1.74 13.8 -76.1
UtilitiesSelSector XLU 62.88 –0.43 18.8
60.77 1.84 6.0 iShMSCIJapan EWJ 60.57 0.25 19.5
EnSelectSectorSPDR XLE
VanEckGoldMiner GDX 27.66 –0.18 31.2 0.000 France 2 -0.583 s l -0.621 -0.576 -0.431 -225.7 -222.6 -321.0
FinSelSectorSPDR XLF 30.82 1.95 29.4 iShNatlMuniBd MUB 114.00 –0.17 4.5
VangdInfoTech VGT 237.43 0.97 42.3 0.000 10 0.041 s l -0.008 0.053 0.727 -180.8 -218.7
HealthCareSelSect XLV 100.95 0.93 16.7 iShPfd&Incm PFF 37.10 0.05 8.4 -186.1
VangdSC Val VBR 136.16 1.00 19.4
IndSelSectorSPDR XLI 81.93 0.89 27.2 iShRussell1000Gwth IWF 171.81 0.55 31.2
iShRussell1000 IWB 175.75 0.86 26.7
VangdSC Grwth VBK 195.25 0.47 29.7 0.000 Germany 2 -0.619 s l -0.629 -0.625 -0.558 -229.4 -223.5 -333.6
InvscQQQI QQQ 206.51 0.75 33.9
VangdDivApp VIG 123.38 0.69 26.0
InvscS&P500EW RSP 114.36 1.05 25.1 iShRussell1000Val IWD 135.89 1.13 22.4 0.000 10 -0.267 s l -0.320 -0.250 0.282 -216.9 -212.0 -263.2
VangdFTSEDevMk VEA 43.71 0.78 17.8
InvscS&P500LowVol SPLV 57.10 –0.23 22.4 iShRussell2000Gwth IWO 211.64 0.61 26.0
iSh3-7YTreasuryBd IEI 125.57 –0.41 3.4 iShRussell2000 IWM 163.96 0.86 22.4
VangdFTSE EM VWO 43.74 1.37 14.8 0.050 Italy 2 -0.170 s l -0.181 -0.099 0.916 -184.4 -178.7 -186.2
VangdFTSE Europe VGK 57.30 0.77 17.9
iShCoreDivGrowth DGRO 41.77 1.09 25.9 iShRussell2000Val IWN 127.69 1.12 18.7 3.000 10 1.241 s l 1.209 1.214 3.013 -66.1 -59.1 9.9
iShRussell3000 IWV 185.66 0.79 26.4 VangdFTSEAWxUS VEU 53.30 0.93 16.9
iShCoreMSCIEAFE IEFA 65.07 0.65 18.3
iShCoreMSCIEmgMk IEMG 53.31 1.72 13.1 iShRussellMid-Cap IWR 58.89 0.80 26.7 VangdGrowth VUG 177.69 0.49 32.3 0.100 Japan 2 -0.121 t l -0.112 -0.171 -0.138 -179.6 -171.7 -291.6
VangdHlthCr VHT 188.53 0.81 17.4
iShCoreMSCITotInt IXUS 61.58 0.95 17.2 iShRussellMCValue IWS 93.68 0.92 22.7 0.100 10 -0.018 t l -0.003 -0.036 0.057 -192.0 -180.3 -285.6
iShS&P500Growth IVW 190.13 0.58 26.2 VangdHiDiv VYM 93.22 1.16 19.5
iShCoreS&P500 IVV 318.97 0.89 26.8
iShCoreS&P MC IJH 203.99 1.11 22.8 iShS&P500Value IVE 128.89 1.17 27.4 VangdIntermBd BIV 87.13 –0.49 7.2 0.050 Spain 2 -0.380 s l -0.396 -0.380 -0.103 -205.4 -200.1 -288.1
83.24 20.1 iShShortCpBd IGSB 53.54 –0.17 3.7 VangdIntrCorpBd VCIT 91.08 –0.32 9.9
iShCoreS&P SC IJR 1.08
VangdLC VV 145.65 0.84 26.8
0.600 10 0.457 s l 0.415 0.447 1.424 -144.5 -138.5 -149.0
iShS&PTotlUSStkMkt ITOT 71.66 0.73 26.3 iShShortTreaBd SHV 110.52 0.01 0.2
iShCoreUSAggBd AGG 112.36 –0.43 5.5 iShTIPSBondETF TIP 116.34 –0.49 6.2 VangdMC VO 175.81 0.73 27.2 3.750 U.K. 2 0.598 s l 0.574 0.561 0.744 -107.7 -103.1 -203.5
iShSelectDividend DVY 104.81 1.00 17.4 iSh1-3YTreasuryBd SHY 84.57 –0.09 1.1 VangdMC Val VOE 118.40 1.08 24.3
VangdMBS VMBS 53.14 –0.21 3.2
1.625 10 0.822 s l 0.776 0.809 1.141 -108.0 -102.4 -177.3
iShEdgeMSCIMinEAFE EFAV 75.45 0.09 13.2 iSh7-10YTreasuryBd IEF 110.51 –0.79 6.1
iShEdgeMSCIMinUSA USMV 64.85 0.25 23.8 iSh20+YTreasuryBd TLT 137.45 –1.65 13.1 VangdRealEst VNQ 90.33 –1.35 21.1 Source: Tullett Prebon
iShEdgeMSCIUSAQual QUAL 99.80 0.75 30.0 iShRussellMCGrowth IWP 150.29 0.51 32.2 VangdS&P500ETF VOO 291.33 0.88 26.8
50.93 ... 1.1 iShUSTreasuryBdETF GOVT 25.97 –0.54 5.4 VangdST Bond BSV 80.49 –0.19 2.4
iShFloatingRateBd
iShGoldTr
FLOT
IAU 14.05 –0.43 14.3 JPM UltShtIncm JPST 50.47 0.02 0.7 VangdSTCpBd VCSH 80.86 –0.15 3.7 Corporate Debt
127.56 13.1 101.63 –0.01 0.7 VangdSC VB 163.92 0.85 24.2
iShiBoxx$InvGrCpBd LQD –0.46 PIMCOEnhShMaturity MINT Price moves by a company's debt in the credit markets sometimes mirror and sometimes anticipate, moves in
iShiBoxx$HYCpBd HYG 87.52 0.23 7.9 SPDR BlmBarcHYBd JNK 109.07 0.25 8.2 VangdTotalBd BND 83.81 –0.48 5.8
iShIntermCorpBd IGIB 57.82 –0.40 10.3 SPDR Gold GLD 138.43 –0.35 14.2 VangdTotIntlBd BNDX 57.96 –0.24 6.8 that same company’s share price.
iShJPMUSDEmgBd EMB 113.36 0.01 9.1 SchwabIntEquity SCHF 33.07 0.71 16.6 VangdTotIntlStk VXUS 55.20
161.33
0.99
0.82
16.9
26.4
Investment-grade spreads that tightened the most…
iShMBSETF MBB 107.76 –0.27 3.0 SchwabUS BrdMkt SCHB 75.38 0.83 25.8 VangdTotalStk VTI
Spread*, in basis points Stock Performance
iShMSCI ACWI ACWI 78.63 0.89 22.6 SchwabUS Div SCHD 57.51 0.99 22.4 VangdTotlWrld VT 80.00 0.92 22.2 Issuer Symbol Coupon (%) Maturity Current One-day change Last week Close ($) % chg
iShMSCIBrazil EWZ 45.80 1.96 19.9 SchwabUS LC SCHX 75.29 0.83 26.1 VangdValue VTV 119.29 1.13 21.8
Truist Financial TFC 4.800 Sept. 1, ’49 154 –42 n.a. 56.08 4.47
Credit Agricole S.A. ACAFP 6.875 Sept. 23, ’49 215 –24 n.a. ... ...
Borrowing Benchmarks | WSJ.com/bonds Ally Financial ALLY 4.125 Feb. 13, ’22 79 –22 91 31.92 1.27
Costco Wholesale COST 2.750 May 18, ’24 12 –19 31 297.34 0.69
Nestle Holdings NESNVX 2.375 Nov. 17, ’22 24 –17 n.a. ... ...
Money Rates December 12, 2019 Deutsche Bank AG DB 4.875 Dec. 1, ’32 414 –15 443 7.57 4.27
Liberty Mutual LIBMUT 4.569 Feb. 1, ’29 101 –15 n.a. ... ...
Key annual interest rates paid to borrow or lend money in U.S. and international markets. Rates below are a Ford Motor F 4.346 Dec. 8, ’26 206 –14 228 9.32 2.31
guide to general levels but don’t always represent actual transactions.
…And spreads that widened the most
Week —52-WEEK— Week —52-WEEK—
Inflation Latest ago High Low Latest ago High Low General Electric GE 5.000 Jan. 21, ’49 272 21 289 11.44 4.28
Nov. index Chg From (%) JPMorgan Chase JPM 3.125 Jan. 23, ’25 59 18 63 138.02 2.86
Federal funds Commercial paper (AA financial)
level Oct. '19 Nov. '18 Pitney Bowes PBI 4.700 April 1, ’23 400 17 n.a. 4.21 –7.88
Effective rate 1.5500 1.5600 2.4800 1.5500 90 days 1.77 1.69 2.78 1.63 Bunge Limited Finance BG 4.350 March 15, ’24 144 12 n.a. … …
U.S. consumer price index High 1.6000 1.6000 3.0000 1.5200
All items 257.208 –0.05 2.1
Libor American Express AXP 2.500 Aug. 1, ’22 45 8 44 122.64 1.66
Low 1.5200 1.4500 2.4400 1.4000
Core 265.108 0.02 2.3 One month 1.73975 1.71013 2.52238 1.69113 Costco Wholesale COST 2.250 Feb. 15, ’22 20 8 n.a. 297.34 0.69
Bid 1.5300 1.5400 2.4400 1.5200 1.89363 1.88500 2.82375 1.88500
Three month Walt Disney DIS 7.750 Jan. 20, ’24 63 6 n.a. 147.76 0.12
International rates Offer 1.5500 1.5900 2.5000 1.5400 Six month 1.88638 1.88813 2.90788 1.87863 Energy Transfer Operating ETP 5.300 April 15, ’47 268 6 278 ... ...
One year 1.93288 1.92263 3.11238 1.85313
Treasury bill auction
Week 52-Week
Euro Libor
High-yield issues with the biggest price increases…
Latest ago High Low 4 weeks 1.540 1.500 2.470 1.500
Bond Price as % of face value Stock Performance
13 weeks 1.520 1.560 2.465 1.520 One month -0.521 -0.508 -0.407 -0.522 Issuer Symbol Coupon (%) Maturity Current One-day change Last week Close ($) % chg
Prime rates 26 weeks 1.520 1.565 2.505 1.520 Three month -0.435 -0.449 -0.324 -0.482
U.S. 4.75 4.75 5.50 4.75 Six month -0.391 -0.396 -0.288 -0.474 Tullow Oil TLWLN 6.250 April 15, ’22 89.083 6.08 100.250 ... ...
Canada 3.95 3.95 3.95 3.95 One year -0.286 -0.290 -0.159 -0.428 Antero Resources AR 5.000 March 1, ’25 78.625 5.88 64.750 2.92 9.77
Secondary market
Japan 1.475 1.475 1.475 1.475 Diebold DBD 8.500 April 15, ’24 90.750 5.88 83.000 9.30 20.31
Value 52-Week
Policy Rates Fannie Mae Latest Traded High Low Chesapeake Energy CHK 7.000 Oct. 1, ’24 53.075 5.08 46.500 0.78 5.03
Euro zone 0.00 0.00 0.00 0.00 30-year mortgage yields DTCC GCF Repo Index Callon Petroleum CPE 6.375 July 1, ’26 100.000 5.00 n.a. 4.44 4.96
Switzerland 0.50 0.50 0.50 0.50 30 days 3.278 3.305 4.310 2.871 Treasury 1.568 58.620 6.007 1.568 Eagle Intermediate Global Holding EAGRUY 7.500 May 1, ’25 78.000 5.00 n.a. ... ...
Britain 0.75 0.75 0.75 0.75
60 days 3.289 3.313 4.328 2.890 MBS 1.584 80.530 6.699 1.584 Hilcorp Energy I HILCRP 5.000 Dec. 1, ’24 94.628 3.88 89.250 ... ...
Australia 0.75 0.75 1.50 0.75 Southwestern Energy SWN 7.750 Oct. 1, ’27 89.375 3.88 84.531 2.12 5.47
Overnight repurchase Other short-term rates Weekly survey
Latest Week ago Year ago
…And with the biggest price decreases
U.S. 1.56 1.61 3.40 1.50
Week 52-Week Fresh Market TFM 9.750 May 1, ’23 50.000 –3.50 n.a. ... ...
U.S. government rates Latest ago high low Freddie Mac Encana ECACN 5.150 Nov. 15, ’41 97.961 –2.19 n.a. ... ...
30-year fixed 3.73 3.68 4.63 HCA HCA 5.500 June 15, ’47 114.104 –1.94 115.182 143.58 0.74
Discount Call money 15-year fixed 3.19 3.14 4.07 Staples SPLS 10.750 April 15, ’27 99.375 –1.63 103.688 ... ...
2.25 2.25 3.00 2.25 3.50 3.50 4.25 3.50 Five-year ARM 3.36 3.39 4.04
Arcelormittal MTNA 4.250 July 16, ’29 102.927 –1.39 102.529 ... ...
Notes on data: Noble Holding International NE 5.250 March 15, ’42 29.000 –1.25 30.375 … …
U.S. prime rate is the base rate on corporate loans posted by at least 70% of the 10 largest U.S. banks, and is effective October 31, 2019. Other prime rates Teck Resources TCKBCN 6.000 Aug. 15, ’40 109.925 –1.02 109.575 ... ...
aren’t directly comparable; lending practices vary widely by location; Discount rate is effective October 31, 2019. DTCC GCF Repo Index is Depository Trust CyrusOne CONE 3.450 Nov. 15, ’29 99.991 –1.01 100.841 60.90 –1.84
& Clearing Corp.'s weighted average for overnight trades in applicable CUSIPs. Value traded is in billions of U.S. dollars. Federal-funds rates are Tullett
Prebon rates as of 5:30 p.m. ET. *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; Bureau of Labor Statistics; DTCC; FactSet; Note: Data are for the most active issue of bonds with maturities of two years or more
Tullett Prebon Information, Ltd. Sources: MarketAxess Corporate BondTicker; Dow Jones Market Data
 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.

THE WALL STREET JOURNAL. Friday, December 13, 2019 | 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.
CharterComms CHTR 469.60 3.73 t Dropbox DBX 16.75 -0.49 GeneralDynamics GD 180.47 1.20 KirklandLakeGold KL 42.68 0.35 s NewmontGold NEM 41.12 0.22 RobertHalf RHI 61.99 1.10 3M MMM 168.56 -0.18
NYSE Arca, NYSE American and Nasdaq Stock t-New 52-week low.
Market listed securities. Prices are composite dd-Indicates loss in the most recent CheckPoint CHKP 113.77 0.24 DukeEnergy DUK 89.56 0.56 GeneralElec GE 11.44 0.47 Knight-Swift KNX 38.06 0.26 NewsCorp B NWS 14.03 0.49 Rockwell ROK 205.47 2.21 Tiffany TIF 133.57 0.14
quotations that include primary market trades four quarters. Chemed CHE 436.37 0.87 DukeRealty DRE 34.31 -0.51 GeneralMills GIS 51.66 0.08 Kohl's KSS 49.12 1.42 NewsCorp A NWSA 13.79 0.48 RogersComm B RCI 48.00 0.13 s Toro TTC 81.39 1.20
as well as trades reported by Nasdaq BX FD-First day of trading. CheniereEnergy LNG 59.46 -0.11 Dunkin' DNKN 75.50 -0.11 GeneralMotors GM 36.10 0.86 KoninklijkePhil PHG 47.46 -0.20 NextEraEnergy NEE 233.90 -1.88 Roku ROKU 139.57 -6.13 TorontoDomBk TD 55.67 0.42
(formerly Boston), Chicago Stock Exchange, h-Does not meet continued listing CheniereEnerPtrs CQP 39.74 0.31 DuPont DD 66.19 1.86 Genesee&Wyoming GWR 111.26 0.19 KoreaElcPwr KEP 11.80 -0.12 NielsenHoldings NLSN 20.00 0.37 Rollins ROL 33.24 -0.23 Total TOT 53.13 0.45
Cboe, NYSE National and Nasdaq ISE. standards Chevron CVX 118.81 2.58 Dynatrace DT 23.82 -0.19 Genmab GMAB 22.21 -0.75 KraftHeinz KHC 31.94 0.34 s Nike NKE 97.72 0.54 RoperTech ROP 346.75 0.03 ToyotaMotor TM 141.60 -0.02
The list comprises the 1,000 largest lf-Late filing Chewy CHWY 27.95 1.07 ENI E 30.41 0.33 Genpact G 41.14 0.19 Kroger KR 28.20 0.18 NiSource NI 26.67 -0.22 RossStores ROST 116.45 1.60 TractorSupply TSCO 98.27 1.24
companies based on market capitalization. q-Temporary exemption from Nasdaq ChinaLifeIns LFC 13.49 0.27 EOG Rscs EOG 76.71 2.04 Gentex GNTX 28.94 0.58 LATAMAirlines LTM 11.16 0.04 NobleEnergy NBL 22.94 0.91 RoyalBkCanada RY 78.81 0.13 TradeDesk TTD 246.40 -4.08
requirements. ChinaMobile CHL 38.81 0.42 EPAM Systems EPAM 206.74 -1.10 GenuineParts GPC 105.73 1.48 LINE LN 48.26 0.35 Nokia NOK 3.57 0.10 RoyalBkScotland RBS 6.16 0.14 Tradeweb TW 44.68 -0.50
Underlined quotations are those stocks with s LKQ
large changes in volume compared with the t-NYSE bankruptcy ChinaPetrol SNP 57.55 1.23 E*TRADE ETFC 46.03 1.10 Gildan GIL 28.75 ... LKQ 36.01 0.23 NomuraHoldings NMR 5.18 -0.01 RoyalCaribbean RCL 124.99 1.67 TransDigm TDG 567.58 -2.47
v-Trading halted on primary market. ChinaUnicom CHU 8.85 0.12 EastWestBncp EWBC 48.15 2.14 GileadSciences GILD 67.63 0.48 s LPL Financial LPLA 93.00 0.86 Nordson NDSN163.00 -4.00 RoyalDutchA RDS.A 57.76 0.36 TransUnion TRU 84.52 -0.03
issue’s average trading volume.
vj-In bankruptcy or receivership or Chipotle CMG 811.20-11.54 EastmanChem EMN 79.95 2.92 GSK GSK 45.93 -0.36 L3HarrisTech LHX 196.28 -2.20 Nordstrom JWN 39.69 0.86 RoyalDutchB RDS.B 57.60 0.29 Travelers TRV 135.61 0.98
Boldfaced quotations highlight those issues being reorganized under the Chubb CB 153.68 1.71 s Eaton ETN 94.45 1.06 GlobalPayments GPN 175.07 0.28 LabCpAm LH 169.16 1.74 NorfolkSouthern NSC 190.51 -0.50 RoyalGold RGLD 114.31 -1.67 Trimble TRMB 40.46 0.84
whose price changed by 5% or more if their Bankruptcy Code, or securities ChunghwaTel CHT 37.06 0.27 eBay EBAY 35.31 0.39 s GlobeLife GL 106.35 1.46 LamResearch LRCX 284.70 9.30 s NorthernTrust NTRS 109.88 2.28 Ryanair RYAAY 84.35 -0.15 Trip.com TCOM 33.21 1.24
previous closing price was $2 or higher. assumed by such companies. Church&Dwight CHD 69.55 0.15 Ecolab ECL 185.18 0.07 GoDaddy GDDY 67.61 1.46 LamarAdv LAMR 86.41 -0.54 NorthropGrum NOC 345.90 -2.81 SAP SAP 136.70 1.79 s TruistFinl TFC 56.08 2.40
Cigna CI 193.56 1.81 Ecopetrol EC 19.59 0.23 s GoldmanSachs GS 226.05 4.86 s LambWeston LW 84.11 -0.27 s NortonLifeLock NLOK 26.18 -0.20 S&P Global SPGI 270.29 -1.86 Twilio TWLO 96.86 0.63
Wall Street Journal stock tables reflect composite regular trading as of 4 p.m. and CincinnatiFin CINF 106.18 0.86 EdisonInt EIX 71.45 -0.08 Graco GGG 50.88 0.97 LasVegasSands LVS 68.70 3.26 NorwegCruise NCLH 56.13 0.72 SBA Comm SBAC 228.05 -7.72 Twitter TWTR 30.30 -0.25
changes in the closing prices from 4 p.m. the previous day. Cintas CTAS 259.25 1.20 EdwardsLife EW 230.70 0.38 s Grainger GWW 338.80 9.28 Lear LEA 130.11 3.63 Novartis NVS 93.06 0.02 s SEI Investments SEIC 65.70 0.93 TylerTech TYL 280.73 1.31
CiscoSystems CSCO 45.67 1.39 ElancoAnimal ELAN 27.48 0.69 Grifols GRFS 22.73 0.05 Leggett&Platt LEG 51.86 0.71 NovoNordisk NVO 56.50 -0.36 SK Telecom SKM 22.56 0.12 TysonFoods TSN 87.51 -0.98
s Citigroup C 77.05 1.50 ElbitSystems ESLT 166.23 -1.47 GuardantHealth GH 72.53 1.75 Leidos LDOS 91.19 -0.89 Novocure NVCR 77.84 -1.06 SLGreenRealty SLG 88.63 -0.90 UBS Group UBS 12.16 0.25
Thursday, December 12, 2019 Net Net s CitizensFin CFG 40.56 1.42 ElectronicArts EA 105.09 1.89 Guidewire GWRE 105.43 -1.91 Lennar B LEN.B 46.06 -1.47 Nucor NUE 58.11 -0.01 SS&C Tech SSNC 58.89 0.32 UDR UDR 46.38 -0.43
Net Stock Sym Close Chg Stock Sym Close Chg s EmersonElec EMR 76.97 1.24
CitrixSystems CTXS 110.30 0.85 HCA Healthcare HCA 143.58 1.05 Lennar A LEN 58.06 -1.66 Nutanix NTNX 32.61 0.70 StoreCapital STOR 37.40 -1.16 UGI UGI 44.07 0.66
Stock Sym Close Chg AnalogDevices ADI 117.81 1.96 Bio-RadLab A BIO 362.69 10.81 Clorox CLX 152.26 0.13 Enbridge ENB 38.26 -0.39 HDFC Bank HDB 63.44 0.25 LennoxIntl LII 259.70 1.32 Nutrien NTR 46.90 0.53 SVB Fin SIVB 251.21 11.79 US Foods USFD 40.10 -0.16
Anaplan PLAN 50.44 -1.12 s Bio-RadLab B BIO.B 361.54 18.56 Coca-Cola KO 54.14 0.19 EncompassHealth EHC 70.58 -0.09 HD Supply HDS 40.39 0.91 LeviStrauss LEVI 18.41 0.39 s NVIDIA NVDA 224.07 6.73 Sabre SABR 22.40 0.22 Uber UBER 28.69 0.27
A B C AngloGoldAsh AU 20.21 -0.29 Biogen BIIB 293.85 1.62 Coca-Cola Euro CCEP 49.64 -0.53 s EnelAmericas ENIA 10.81 0.15 HP HPQ 20.43 0.36 s LibertyBroadbandA LBRDA 119.77 1.22 Salesforce.com CRM 158.59 2.20 Ubiquiti UI 188.64 -3.86
s ABB ABB 23.62 0.68
AB InBev BUD 77.77 -1.00 BioMarinPharm BMRN 80.90 2.13 Cognex CGNX 53.99 1.54 EnelChile ENIC 4.63 0.04 HSBC HSBC 37.93 0.77 LibertyBroadbandC LBRDK 121.12 1.23 O P Q s Sanofi SNY 49.51 0.50 UltaBeauty ULTA 258.87 7.23
AnnalyCap NLY 9.35 -0.03 BlackKnight BKI 62.35 -0.10 CognizantTech CTSH 61.77 1.09 EnergyTransfer ET 12.64 0.48 Haemonetic HAE 117.17 -0.38 LibertyGlobal A LBTYA 21.63 0.08 SantanderCons SC 23.70 0.56 UnderArmour C UA 17.51 ...
ACADIA Pharm ACAD 44.52 -0.49 OGE Energy OGE 43.14 0.05
Anthem ANTM 284.42 3.82 s BlackRock BLK 502.12 8.21 ColgatePalm CL 67.23 -0.23 Entegris ENTG 49.78 1.08 Halliburton HAL 24.30 0.92 LibertyGlobal C LBTYK 20.64 0.14 SareptaTherap SRPT 100.47 -0.98 UnderArmour A UAA 19.29 0.09
ADT ADT 8.43 -0.02 ONEOK OKE 72.91 0.32
Aon AON 205.88 0.71 s Blackstone BX 54.17 -0.75 ColumbiaSportswr COLM 92.85 0.66 Entergy ETR 116.92 -1.26 HarleyDavidson HOG 38.25 0.68 LibertyFormOne C FWONK 44.04 -1.13 Sasol SSL 18.59 0.15 Unilever UN 59.64 -0.25
AECOM ACM 43.35 0.53 Comcast A CMCSA 43.01 0.94 EnterpriseProd EPD 28.16 0.49 OReillyAuto ORLY 441.20 -3.45
Apache APA 22.04 0.76 Boeing BA 346.29 -3.71 HartfordFinl HIG 61.28 0.36 LibertyFormOne A FWONA 41.75 -1.26 Schlumberger SLB 39.07 0.67 Unilever UL 59.49 -0.14
AES AES 18.93 0.02 OccidentalPetrol OXY 38.25 0.71
ApartmtInv AIV 51.00 -0.53 BookingHldgs BKNG 1948.48 22.60 Comerica CMA 72.17 3.04 Equifax EFX 138.53 2.58 Hasbro HAS 102.76 2.39 LibertySirius A LSXMA 48.03 0.21 s SchwabC SCHW 51.07 1.47 UnionPacific UNP 175.22 0.77
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ApolloGlbMgmt APO 44.47 -0.49 BoozAllen BAH 69.35 -0.53 HealthcareAmer HTA 29.03 -0.85 LibertySirius C LSXMK 47.55 0.10 Sea SE 37.30 0.53 UnitedAirlines UAL 88.47 1.45
AGCO AGCO 78.09 1.50 OldDomFreight ODFL 187.48 1.78
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AGNC Invt AGNC 17.45 0.11 EquityLife ELS 69.93 -1.21 OldRepublic ORI 22.68 0.41
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Ansys ANSS 251.02 -0.61 OmegaHealthcare OHI 41.42 -0.70
Aptargroup ATR 114.18 1.61 s BostonSci BSX 44.67 0.85 ConchoRscs CXO 79.92 2.13 EquityResdntl EQR 81.78 -0.90 Heico A HEI.A 96.00 -0.55 s LincolnElectric LECO 95.96 1.35 SeattleGenetics SGEN 112.26 0.92 s UnitedRentals URI 163.19 6.22
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AquaAmerica WTR 45.12 -0.57 s Bristol-Myers BMY 63.94 1.53 ConEd ED 87.52 -0.07 Herbalife HLF 45.54 1.20 Linde LIN 209.92 4.28 SensataTechs ST 52.47 0.42 UnitedTech UTX 149.41 2.14
AT&T T 38.35 0.18 OneMain OMF 43.54 0.50
Aramark ARMK 43.25 0.43 BritishAmTob BTI 39.40 -0.08 ConstBrands B STZ.B178.70 -1.30 EsteeLauder EL 200.62 2.06 Hershey HSY 146.82 -2.95 LiveNationEnt LYV 69.43 -0.01 ServiceCorp SCI 45.40 0.33 s UnitedHealth UNH 283.61 3.11
AXA Equitable EQH 24.86 0.59 EuronetWorldwide EEFT 153.99 -0.68 OpenText OTEX 43.05 0.21
ArcelorMittal MT 18.51 0.80 BrixmorProp BRX 20.98 -0.45 ConstBrands A STZ 179.79 -1.83 Hess HES 63.38 1.78 LloydsBanking LYG 3.20 0.06 ServiceNow NOW 265.65 -1.65 UnivDisplay OLED 195.31 3.02
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AbbVie ABBV 88.73 2.03 Evergy EVRG 62.14 -0.75 Orange ORAN 14.84 0.07
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ShinhanFin SHG 38.10 0.98 VEREIT VER 9.17 -0.24
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OwensCorning OC 65.64 0.54
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Adobe ADBE 305.96 2.22 Expedia OwlRock ORCC 18.17 0.17
ArrowElec ARW 85.12 1.83 Brown-Forman B BF.B 63.27 -0.51 CoStar CSGP 568.24-12.33 EXPE 113.50 1.54 s Hologic HOLX 53.19 0.59 Lyft LYFT 46.60 -0.76 SignatureBank SBNY 134.62 4.67 VailResorts MTN 242.17 3.88
AdvanceAuto AAP 156.12 0.22 PG&E PCG 11.72 -0.42
ArrowheadPharm ARWR 67.32 -0.90 Brown-Forman A BF.A 58.85 -0.42 Costco COST 297.34 2.04 ExpeditorsIntl EXPD 76.32 1.89 HomeDepot HD 212.04 0.04 LyondellBasell LYB 93.97 2.79 s PNC Fin t SimonProperty SPG 144.01 -1.39 Vale VALE 12.91 0.33
s AdvMicroDevices AMD 42.59 3.12 ExtraSpaceSt EXR 102.40 -2.56 PNC 159.00 4.00
AspenTech AZPN 119.12 0.54 Bruker BRKR 49.58 0.04 Coty COTY 11.67 0.10 HondaMotor HMC 28.96 0.10 SiriusXM SIRI 6.89 0.02 ValeroEnergy VLO 94.53 1.64
Aegon AEG 4.60 0.15 POSCO PKX 50.47 1.74
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s
1.45 SkechersUSA SKX 41.64 0.89
VarianMed VAR 141.86 2.64
CousinsProperties CUZ 39.42 -0.59 F5Networks FFIV 143.46 2.64 s VEDL 8.48 0.42
s AgilentTechs A 84.81 1.39 AstraZeneca AZN 47.92 -0.27 BurlingtonStrs BURL 225.57 3.14
s FMC
HorizonTherap HZNP 32.84 0.59
M&T Bank MTB 171.98 5.54 PPL PPL 33.60 -0.16 Skyworks SWKS 111.49 2.20 Vedanta
Credicorp BAP 208.38 3.71 FMC 99.50 1.25
AgnicoEagle AEM 60.71 -0.28 Athene ATH 45.29 1.30 CACI Intl CACI 239.54 0.97 HormelFoods HRL 45.35 -0.21
MDU Rscs MDU 28.85 -0.07 PRA HealthSci PRAH103.46 1.41 SlackTech WORK 20.90 0.15 VeevaSystems VEEV 142.65 0.41
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AirProducts APD 232.40 2.90 Atlassian TEAM 116.17 -2.06 -1.55
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CreditSuisse CS 13.31 0.36 FactSet FDS 270.04 -1.56
AkamaiTech AKAM 83.34 -0.51 AtmosEnergy ATO 106.51 -0.69 CDK Global CDK 54.57 1.02 HostHotels HST 17.86 -0.05
MKS Instrum MKSI 110.82 1.93 PVH PVH 105.13 2.63 Smith&Nephew SNN 44.89 0.06 VeriSign VRSN 189.97 0.05
Autodesk ADSK 177.90 -1.74 CDW CDW 136.80 1.14 CrowdStrike CRWD 47.30 -0.43 FairIsaac FICO 352.83 -1.67 Huazhu HTHT 34.82 0.84 Smucker SJM 102.47 -1.96 VeriskAnalytics VRSK 147.41 0.85
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CrownCastle CCI 132.00 -1.41 Fastenal FAST 37.65 1.42 s Verizon
Albemarle ALB 68.02 2.72 Autohome ATHM 74.39 2.19 CF Industries CF 45.40 0.84 Hubbell HUBB 147.66 1.20
MSCI MSCI 259.86 -0.93 PackagingCpAm PKG 112.18 0.62 Snap SNAP 14.45 0.22 VZ 61.17 0.09
Autoliv ALV 85.78 2.56 CGI GIB 82.83 0.14 CrownHoldings CCK 71.60 -0.56 FederalRealty FRT 127.59 -2.20 HubSpot HUBS 148.66 -0.34 SnapOn SNA 170.42 2.74 VertxPharm VRTX 220.55 0.55
Alcon ALC 56.33 0.63 FedEx FDX 164.89 5.81 MadisonSquGarden MSG 278.95 5.03 PagSeguroDig PAGS 29.78 1.03
CubeSmart CUBE 29.95 -0.59
AlexandriaRlEst ARE 156.85 -2.23 ADP ADP 167.16 0.83 CH Robinson CHRW 77.98 2.09 Humana HUM 347.03 2.25
MagellanMid MMP 62.46 0.71 PaloAltoNtwks PANW 226.89 -0.08 SonocoProducts SON 61.76 0.92 ViacomCBS B VIAC 37.78 0.49
AutoZone AZO 1230.92-13.91 CME Group CME 203.14 -1.57 Cullen/Frost CFR 97.97 2.95 Ferrari RACE 166.22 0.99 JBHunt JBHT112.45 1.06 s Sony SNE 67.32 0.78 ViacomCBS A VIACA 40.49 0.66
AlexionPharm ALXN 112.47 2.97 Cummins CMI 184.88 2.77 FiatChrysler FCAU 14.70 0.37 MagnaIntl MGA 55.29 0.83 ParkHotels PK 24.50 0.14
s Alibaba BABA 204.50 -0.14 Avalonbay AVB 209.16 -2.91 CMS Energy CMS 60.77 -0.68 s HuntingtonBcshs HBAN 15.60 0.39 s ParkerHannifin PH 209.30 2.96 Southern SO 60.71 0.02 Vipshop VIPS 13.57 -0.17
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AlignTech ALGN 268.39 -6.84 Avangrid AGR 48.92 0.19 CNA Fin CNA 44.35 0.51 HuntingIngalls HII 254.55 0.81 Paychex PAYX 84.74 0.47
CypressSemi CY 23.44 0.05 FidNatlInfo FIS 136.73 1.58 s HyattHotels H MarathonOil MRO 13.03 0.42
Allakos ALLK 125.97 4.71 Avantor AVTR 18.34 -0.18 CNH Indl CNHI 10.73 0.21
s FifthThirdBncp FITB 31.49 1.15
82.50 1.42
MarathonPetrol MPC 59.00 1.89 PaycomSoftware PAYC 254.48 -7.59 SouthwestAir LUV 54.49 0.49 VistraEnergy VST 24.05 0.15
AveryDennison AVY 129.62 -0.19 CNOOC CEO 149.78 3.09 CyrusOne CONE 60.90 -1.14 IAA IAA 45.94 0.29 SpiritAeroSys SPR 80.00 -1.39 VMware VMW 156.14 5.23
Alleghany Y 797.86 9.83 58.com WUBA 62.05 1.71 Markel MKL 1131.59 6.48 Paylocity PCTY 114.99 -5.27
Allegion ALLE 124.47 -1.22 AxaltaCoating AXTA 29.94 0.15 CPFLEnergia CPL 16.04 0.34
D E F FirstAmerFin FAF 61.51 -0.50
IAC/InterActive IAC 218.36 1.58
MarketAxess MKTX 369.46 -7.35 PayPal PYPL 105.67 0.16 Splunk SPLK 143.65 -2.25 Vodafone VOD 18.94 0.04
s Allergan AGN 188.27 1.63 BCE BCE 48.77 -0.23 s CRH CRH 39.53 0.34 s ICICI Bank IBN 15.09 0.11 Pearson PSO 8.48 ... Spotify SPOT 147.23 0.10 VornadoRealty VNO 65.04 -0.57
s FirstRepBank FRC 115.62 3.20 s Marriott MAR 145.10 2.35
AlliantEnergy LNT 52.59 -0.45 BHP Group BHP 53.74 0.52 CSX CSX 72.28 0.55 DISH Network DISH 34.23 0.34
FirstEnergy FE 47.85 -0.17
IdexxLab IDXX 251.88 1.43
s Marsh&McLen MMC 110.28 1.31 Pegasystems PEGA 75.31 -0.14 t Sprint S 5.19 -0.06 VoyaFinancial VOYA 58.42 1.05
Allstate ALL 110.35 0.76 BHP Group BBL 46.16 0.39 CVS Health CVS 74.26 0.91 DTE Energy DTE 124.93 -0.41 s IHS Markit INFO 74.04 0.39 Peloton PTON 30.85 -1.18 Square SQ 65.86 0.11 VulcanMatls VMC 142.49 0.09
Fiserv FISV 115.18 0.57 MartinMarietta MLM 275.03 2.80 s StanleyBlackDck SWK 167.76 8.17
AllyFinancial ALLY 31.92 0.40 BOK Fin BOKF 87.13 2.84 CableOne CABO 1514.87-14.13 DXC Tech DXC 37.40 1.33 ING Groep ING 11.92 0.34 PembinaPipeline PBA 35.56 -0.20
AlnylamPharm ALNY 120.61 1.82 BP BP 36.96 0.40 CabotOil COG 16.16 0.16 s Danaher DHR 151.30 1.63
FiveBelow FIVE 125.74 4.79 Invesco IVZ 17.71 0.62
MarvellTech MRVL 25.63 0.85
s Masco MAS 47.42 1.00 s Pentair PNR 45.97 0.47 Starbucks SBUX 88.21 1.62
W X Y Z
FleetCorTech FLT 301.52 -1.54 s
Alphabet A GOOGL 1348.49 4.24 BRF BRFS 8.67 -0.03 CadenceDesign CDNS 66.88 0.99 Darden DRI 116.27 -1.17 Flex FLEX 12.01 0.47
IPG Photonics IPGP143.20 4.56
Masimo MASI 157.27 3.06 People'sUtdFin PBCT 17.02 0.54 StarsGroup TSG 24.48 0.19 WABCO WBC 135.37 0.23
Alphabet C GOOG 1350.27 5.25 BWX Tech BWXT 62.01 0.35 CAE CAE 25.71 -0.02 Datadog DDOG 35.73 0.18 FlirSystems FLIR 53.18 0.68
IQVIA IQV 145.29 1.45
Mastercard MA 292.21 2.16 PepsiCo PEP 137.18 0.08 StarwoodProp STWD 24.63 -0.13 WEC Energy WEC 88.78 -0.75
Alteryx AYX 94.63 -3.78 Baidu BIDU 120.54 4.17 s CaesarsEnt CZR 13.19 0.17 s DaVita DVA 73.24 0.61 Flowserve FLS 49.58 1.36
s ITT ITT 73.86 1.00
MatchGroup MTCH 69.09 0.47 PerkinElmer PKI 95.85 1.54 s StateStreet STT 80.42 2.23 WEX WEX 201.58 4.59
AlticeUSA ATUS 26.43 0.33 BakerHughes BKR 23.76 1.08 CamdenProperty CPT 107.16 -1.04 Deere DE 173.82 4.12 FomentoEconMex FMX 94.10 0.47
IcahnEnterprises IEP 61.13 0.48
MaximIntProducts MXIM 59.46 1.58 Perrigo PRGO 54.53 0.72 SteelDynamics STLD 35.07 0.33 W.P.Carey WPC 77.55 -2.85
Altria MO 49.93 -0.37 Ball BLL 63.41 -0.46 CampbellSoup CPB 47.71 -0.27 DellTechC DELL 49.50 1.79 FordMotor F
Icon ICLR 161.57 -0.16
McCormick MKC 166.46 -4.19 PetroChina PTR 47.83 1.42 s Stericycle SRCL 65.75 0.14
s WPP WPP 65.14 1.67
9.32 0.21
Amarin AMRN 22.99 0.18 BancoBilbaoViz BBVA 5.45 0.21 CIBC CM 83.23 0.67 DeltaAir DAL 56.69 1.61 Fortinet FTNT 104.40 0.26
IDEX IEX 166.86 2.89
McDonalds MCD 196.31 1.59 PetroleoBrasil PBR 16.06 0.35 Steris STE 153.66 -0.02
Wabtec WAB 75.14 0.24
Amazon.com AMZN 1760.33 11.61 BancoBradesco BBDO 7.82 0.15 CanNtlRlwy CNI 90.62 0.49 DentsplySirona XRAY 56.94 0.16 Fortis FTS 40.43 -0.04
s IllinoisToolWks ITW 179.10 2.23
McKesson MCK 143.93 0.57 PetroleoBrasilA PBR.A 15.17 0.44 s STMicroelec STM 27.15 0.73 WalgreensBoots WBA 58.58 0.57
Ambev ABEV 4.57 0.12 BancodeChile BCH 22.26 0.38 CanNaturalRes CNQ 30.47 0.95 DeutscheBank DB 7.57 0.31 Fortive FTV 76.17 1.20
Illumina ILMN 321.99 1.42
MedicalProp MPW 20.26 -0.48 Pfizer PFE 38.54 0.32 StoneCo STNE 38.69 -0.01
Walmart WMT 119.76 0.76
Amcor AMCR 10.68 0.20 BancSanBrasil BSBR 10.86 0.13 s CanPacRlwy CP 249.91 1.94 DevonEnergy DVN 23.99 0.66 ImperialOil IMO 25.44 0.22 PhilipMorris PM 84.05 -0.79 Stryker SYK 199.77 1.79
s FortBrandsHome FBHS 65.52 0.36 Medicines MDCO 84.03 -0.04 WasteConnections WCN 89.25 -0.91
s Amdocs DOX 70.20 0.57 BcoSantChile BSAC 22.93 0.48 Canon CAJ 28.36 0.05 DexCom DXCM 202.00-10.36 FoxA FOXA 36.85 0.69
Incyte INCY 92.85 -2.08
Medtronic MDT 112.38 0.66 Phillips66 PSX 113.73 1.52 SumitomoMits SMFG 7.36 ...
WasteMgt WM 110.66 -0.74
Amerco UHAL 353.92 -2.32 BancoSantander SAN 4.05 0.16 CanopyGrowth CGC 21.13 0.88 Diageo DEO 160.70 -1.48 Infosys INFY 10.03 -0.04 PilgrimPride PPC 32.12 0.41 SunComms SUI 153.46 -3.02
FoxB FOX 35.96 0.67 MelcoResorts MLCO 22.83 1.57 Waters WAT 233.69 4.72
Ameren AEE 74.71 -0.24 BanColombia CIB 52.27 0.49 s CapitalOne COF 104.03 2.60 DiamondbkEner FANG 86.27 2.44 s Ingersoll-Rand IR 134.39 1.38 Pinduoduo PDD 38.09 0.78 SunLifeFinancial SLF 44.89 0.11
Franco-Nevada FNV 97.61 -0.92 MellanoxTech MLNX 116.28 2.00 Watsco WSO 180.75 1.31
AmericaMovil AMX 15.47 0.10 s BankofAmerica BAC 34.68 1.04 CardinalHealth CAH 54.66 0.38 DigitalRealty DLR 114.67 -1.27 Ingredion INGR 89.65 1.85 PinnacleWest PNW 85.74 0.30 SuncorEnergy SU 31.95 0.24
FranklinRscs BEN 26.79 0.86 MercadoLibre MELI 579.98 -0.33 Wayfair W 88.75 0.65
AmerAirlines AAL 27.72 0.86 BankofMontreal BMO 76.32 0.51 Carlisle CSL 158.51 1.14 DiscoverFinSvcs DFS 86.38 2.15 FreeportMcM FCX 13.06 0.22
Insulet PODD 173.28 -6.91
s Merck MRK 89.57 0.59 t Pinterest PINS 17.76 -0.44 Suzano SUZ 9.60 0.10
WellCareHealth WCG 315.98 -0.23
AmCampus ACC 45.78 -0.95 BankNY Mellon BK 51.22 1.34 CarMax KMX 99.05 0.02 DiscoveryA DISCA 32.36 0.27 FreseniusMed FMS 36.40 0.26
Intel INTC 57.55 0.48
MetLife MET 50.54 1.45 PioneerNatRscs PXD 139.55 3.36 SynchronyFin SYF 37.69 0.55 WellsFargo WFC 54.36 1.19
AEP AEP 91.14 -1.01 BkNovaScotia BNS 56.73 0.16 Carnival CCL 46.90 1.11 DiscoveryC DISCK 30.10 0.18 ICE ICE 90.72 -1.59 PlainsAllAmPipe PAA 17.65 0.12 s SyneosHealth SYNH 57.36 1.25
MettlerToledo MTD 775.42 13.07 Welltower WELL 79.13 -2.04
AmerExpress AXP 122.64 2.00 s Barclays BCS 9.08 0.11 Carnival CUK 44.25 0.89 Disney DIS 147.76 0.17 G H I InterContinentl IHG 64.52 1.18
s MicrochipTech MCHP 103.16 3.81 PlanetFitness PLNT 72.54 -1.65 s Synnex SNX 128.99 1.88
WestPharmSvcs WST 146.41 -0.26
s AmericanFin AFG 110.87 0.71 BarrickGold GOLD 17.56 -0.06 Catalent CTLT 52.24 0.06 DocuSign DOCU 71.97 -0.49 IBM IBM 135.32 1.56 Polaris PII 102.28 3.30 Synopsys SNPS 135.88 3.80
MicronTech MU 50.97 1.71 WesternDigital WDC 53.73 2.66
AmHomes4Rent AMH 25.40 -0.38 s BauschHealth BHC 31.89 2.56 Caterpillar CAT 146.78 2.78 DolbyLab DLB 68.13 0.71 GCI LibertyA GLIBA 68.89 0.82 IntlFlavors IFF 134.60 0.06
s Microsoft MSFT 153.24 1.54 Pool POOL 207.49 -0.27 s Sysco SYY 83.27 0.39
WesternMidstrm WES 19.40 -0.25
AIG AIG 51.03 0.62 BaxterIntl BAX 83.51 0.50 Celanese CE 125.36 2.57 DollarGeneral DG 155.58 1.07 s GDS Holdings GDS 49.09 0.30 IntlPaper IP 46.56 0.38 PostHoldings POST 106.54 0.09
AmerTowerREIT AMT 209.69 -1.87 s BectonDicknsn BDX 265.44 4.38 CenovusEnergy CVE 9.62 0.26 DollarTree DLTR 92.55 1.05 Galapagos GLPG 215.54 0.54 Interpublic IPG 23.06 0.37
MidAmApt MAA 130.78 -0.86
Middleby MIDD 109.66 0.19 PrincipalFin PFG 54.86 1.33 T U V WesternUnion WU 27.05 0.46
WestlakeChem WLK 71.57 2.31
AmerWaterWorks AWK 118.43 -2.47 BeiGene BGNE 179.17 -0.76 Centene CNC 58.52 -0.12 DominionEner D 80.69 -0.21 s Gallagher AJG 94.62 0.18 InterXion INXN 80.55 -0.87
MitsubishiUFJ MUFG 5.42 0.01 Procter&Gamble PG 124.57 -0.09 TAL Education TAL 45.40 0.06 WestpacBanking WBK 16.54 ...
AmericoldRealty COLD 33.84 -1.19 Berkley WRB 69.60 0.04 CenterPointEner CNP 24.82 -0.29 Domino's DPZ 296.65 3.68 Gaming&Leisure GLPI 41.01 -0.89 Intuit INTU 252.75 0.85 Progressive PGR 72.69 1.53 TC Energy TRP 51.38
MizuhoFin MFG 3.14 0.02 -0.29 WestRock WRK 41.24 0.83
s Ameriprise AMP 168.43 3.92 s BerkHathwy A BRK.A3388005200.00 CentraisElBras EBR 8.83 0.09 s Donaldson DCI 57.15 0.72 Gap GPS 17.02 0.85 IntuitiveSurgical ISRG 580.97 6.18 Prologis PLD 88.92 -0.88 TCF Financial TCF 45.51
MobileTeleSys MBT 9.53 0.02 1.75 Weyerhaeuser WY 29.55 0.22
AmerisourceBrgn ABC 86.79 0.13 s BerkHathwy B BRK.B 225.92 3.35 CenturyLink CTL 13.74 -0.27 DouglasEmmett DEI 43.15 -0.78 GardnerDenver GDI 35.02 0.73 InvitatHomes INVH 28.80 -0.66 Proofpoint PFPT 112.86 -0.13 TD Ameritrade AMTD 53.45
Moderna MRNA 18.45 -0.20 1.73 WheatonPrecMet WPM 27.69 -0.26
s Ametek AME 99.30 0.63 BerryGlobal BERY 47.38 0.33 CeridianHCM CDAY 61.57 -0.47 s Dover DOV 114.48 1.31 Garmin GRMN 97.78 0.19 IonisPharma IONS 62.22 0.53 ProsperityBcshs PB 71.86 2.05 TE Connectivity TEL 94.45 1.30 Whirlpool WHR151.54 5.34
MohawkInds MHK 139.06 2.39
s Amgen AMGN 235.99 1.98 s BestBuy BBY 85.35 1.52 Cerner CERN 71.82 0.32 Dow DOW 54.45 1.35 Gartner IT 157.41 0.43 iQIYI IQ 19.99 ... PrudentialFin PRU 94.55 2.13 Telus TU 37.99 -0.08
MolinaHealthcare MOH 129.72 1.88 Williams WMB 22.65 -0.16
s Amphenol APH 108.02 2.09 Bio-Techne TECH 218.31 2.62 s CharlesRiverLabs CRL 147.07 0.83 DrReddy'sLab RDY 41.26 0.36 Generac GNRC 99.58 0.04 IronMountain IRM 32.73 0.06 Prudential PUK 36.06 1.29 s TIM Part TSU 17.60 0.41
MolsonCoors A TAP.A 62.00 0.75 WillisTowers WLTW 198.42 4.01
ItauUnibanco ITUB 8.68 0.09 PublicServiceEnt PEG 58.50 0.23 TJX TJX 60.86 0.47
MolsonCoors B TAP 51.36 0.19 Wipro WIT 3.68 0.02
PublicStorage PSA 204.25 -3.67 T-MobileUS TMUS 74.89 0.27 Wix.com
J K L Momo MOMO 35.83 -0.07
Mondelez MDLZ 52.98 -0.95
PulteGroup PHM 39.63 -1.08 s TRowePrice TROW 125.35 1.74
WIX 119.04 -0.51
s Woodward WWD 124.11 0.41
Dividend Changes JD.com JD 33.82
s JPMorganChase JPM 138.02
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3.84
MongoDB MDB 124.73 -3.27
s MonolithicPower MPWR 173.75 4.70
Qiagen
s Qorvo
QGEN 41.50
QRVO 115.35
0.10 s TaiwanSemi TSM 58.61
1.51 TakeTwoSoftware TTWO 125.27
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2.87
WooriFin WF 30.49 1.61
Workday WDAY 159.74 -5.26
s Jabil Qualcomm QCOM 89.05 2.06 TakedaPharm TAK 20.32
JBL 40.44 0.64 MonsterBev MNST 62.24 -0.19 0.25 WynnResorts WYNN 132.27 11.44
Dividend announcements from December 12. JackHenry JKHY 146.79 1.25 s Moody's MCO 234.33 1.08
QuestDiag DGX 105.32 0.59 Tapestry TPR 26.34 0.52 s XP XP 34.64 0.18
JacobsEngg J s MorganStanley MS 50.69 1.24 TargaResources TRGP 37.16 0.30 XPO Logistics XPO 83.48 1.72
Amount Payable / Amount Payable /
JamesHardie JHX 19.71
90.02 1.93
0.28 Morningstar MORN 149.72 -1.98
R S Target TGT 127.52 1.72 XcelEnergy XEL 61.36 -0.80
Company Symbol Yld % New/Old Frq Record Company Symbol Yld % New/Old Frq Record JazzPharma JAZZ 149.90 1.78 Mosaic MOS 18.96 0.74 RELX TataMotors TTM 12.34 0.99 Xerox XRX 37.12 0.60
RELX 23.98 -0.16
s JefferiesFin JEF 21.59 0.59 MotorolaSol MSI 161.97 0.83 RPM RPM 75.57 1.04 TechnipFMC FTI 19.90 0.56 Xilinx XLNX 96.54 2.67
Increased Stocks J&J JNJ 141.34 0.36 Mylan MYL 19.68 0.87 RalphLauren RL 115.75 TeckRscsB TECK 16.74 0.62 Xylem XYL 77.66 0.83
4.12
FortuneBrandsHome&Sec FBHS 1.3 .24 /.22 Q Mar18 /Feb28 iMedia Brands Cl A IMBI 1:10 /Dec12 JohnsonControls JCI 42.01 -0.69 NICE NICE 153.93 0.26 RaymondJames RJF 91.00 1.67 TeledyneTech TDY 348.31 -0.34 Yandex YNDX 41.75 0.29
Franklin Resources BEN 3.9 .27 /.26 Q Jan10 /Dec31 TransEnterix TRXC 1:13 /Dec12 JonesLang JLL 171.27 2.68 NRG Energy NRG 39.33 0.41 Raytheon RTN 218.19 0.37 Teleflex TFX 356.45 1.67 YumBrands YUM 99.83 0.39
Mid-Amer Apt Communities MAA 2.9 1.00 /.96 Q Jan31 /Jan15 JuniperNetworks JNPR 24.35 0.34 NVR NVR 3752.95-85.07 RealtyIncome O 73.14 -1.44 Ericsson ERIC 9.17 0.10 YumChina YUMC 46.48 0.51
Foreign KB Fin KB 41.48 1.13 s NXP Semi NXPI 123.98 2.58 ReataPharm RETA 201.05 1.51 TelefonicaBras VIV 13.65 0.15 ZTO Express ZTO 21.00 -0.10
Realty Income O 3.7 .2275 /.227 M Jan15 /Jan02
Banco Bradesco Ord ADR BBDO 2.4 .12133 Jan09 /Dec23 KKR KKR 29.26 0.12 Nasdaq NDAQ 104.13 0.71 RegencyCtrs REG 60.82 -1.83 Telefonica TEF 7.41 -0.05 ZayoGroup ZAYO 34.28 0.02
WD-40 WDFC 1.3 .67 /.61 Q Jan31 /Jan17 Banco Bradesco Pref ADR BBD 2.4 .13346 Jan09 /Dec23 KLA KLAC 171.46 4.34 NationalGrid NGG 58.21 -0.98 RegenPharm REGN 372.16 -1.37 TelekmIndonesia TLK 27.97 -0.67 s ZebraTech ZBRA 258.28 1.46
Willis Towers Watson WLTW 1.3 .65 Q Jan15 /Dec31 KSCitySouthern KSU 151.86 -1.56 NatlOilwell NOV 24.14 0.49 s RegionsFin RF 17.42 0.58 10xGenomics TXG 61.54 -3.62 Zendesk ZEN 73.71 0.32
Reduced Kellogg K 66.19 0.04 NatlRetailProp NNN 51.95 -1.16 ReinsGrp RGA 165.29 1.40 Tenaris TS 23.03 0.69 Zillow C Z 42.54 -0.20
Eaton Vance NextShares EVSTC 1.7 1.1828 /1.194 A Dec17 /Dec13 Special KeurigDrPepper KDP 28.78 -0.05 NetApp NTAP 62.73 2.07 RelianceSteel RS 120.87 0.40 Teradyne TER 66.41 0.85 Zillow A ZG 41.96 -0.32
Salem Media Group SALM 17.6 .025 /.065 Q Dec30 /Dec23 s KeyCorp KEY 20.39 0.74 Netease NTES 304.25 -6.25 s RenaissanceRe RNR 196.11 3.66 Tesla TSLA 359.68 6.98 ZimmerBiomet ZBH 147.41 0.40
Landstar System LSTR 0.7 2.00 Jan24 /Jan10 s ZionsBancorp ZION 51.81 1.98
KeysightTechs KEYS 107.30 4.06 Netflix NFLX 298.44 -0.49 RepublicSvcs RSG 88.58 -0.25 TevaPharm TEVA 9.80 0.24
Initial Progressive Corp PGR 0.6 2.25 Jan15 /Jan08 KilroyRealty KRC 81.65 -1.49 Neurocrine NBIX 111.43 -1.82 s ResMed RMD 152.25 1.77 TexasInstruments TXN 126.07 2.35 Zoetis ZTS 124.33 0.77
KimberlyClark KMB 135.92 -0.98 NewOrientalEduc EDU 122.33 0.60 RestaurantBrands QSR 66.43 0.14 Textron TXT 44.41 0.48 ZoomVideo ZM 62.49 -1.03
AGNC Invt Pfd. E AGNCO 6.4 .4604 Q Jan15 /Jan01 KEY: A: annual; M: monthly; Q: quarterly; r: revised; SA: semiannual; s ThermoFisherSci TMO 319.36
KimcoRealty KIM 20.42 -0.41 NewResidInvt NRZ 15.73 0.10 RingCentral RNG 160.75 -1.62 1.28 Zscaler ZS 45.19 -0.01
New York Mtg Pfd. E NYMTM 7.8 .4758 Q Jan15 /Jan01 S2:1: stock split and ratio; SO: spin-off. KinderMorgan KMI 20.15 -0.05 NewellBrands NWL 19.44 0.40 RioTinto RIO 57.52 0.61 ThomsonReuters TRI 71.43 -0.14 Zynga ZNGA 6.20 0.06

New Highs and Lows | WSJ.com/newhighs Stock

52-Wk %
Sym Hi/Lo Chg Stock
52-Wk %
Sym Hi/Lo Chg Stock
52-Wk %
Sym Hi/Lo Chg Stock
52-Wk %
Sym Hi/Lo Chg Stock
52-Wk %
Sym Hi/Lo Chg Stock
52-Wk %
Sym Hi/Lo Chg Stock
52-Wk %
Sym Hi/Lo Chg
Eaton ETN 94.64 1.1 Grainger GWW 339.00 2.8 LPL Financial LPLA 93.71 0.9 PanAmerSilver PAAS 21.32 2.6 SkechersUSA SKX 41.70 2.2 Verizon VZ 61.63 0.1 J.Jill JILL 1.00 -1.0
The following explanations apply to the New York Stock Exchange, NYSE Arca, NYSE EHang EH 13.36 -0.1 GreatSouthernBncp GSBC 62.85 1.7 LambWeston LW 85.08 -0.3 ParkerHannifin PH 209.84 1.4 Skyworks SWKS 112.77 2.0 VictoryCapital VCTR 22.25 1.3 Jiayin JFIN 5.51 -5.0
American and Nasdaq Stock Market stocks that hit a new 52-week intraday high or low EidosTherap EIDX 66.30 ... GreenVisionAcqn GRNV 9.86 0.2 LawsonProducts LAWS 53.17 0.5 Parsons PSN 42.65 3.3 Sony SNE 67.39 1.2 VinceHolding VNCE 25.36 5.2 Kopin KOPN 0.40 -1.0
in the latest session. % CHG-Daily percentage change from the previous trading session. EmersonElec EMR 77.12 1.6 Group1Auto GPI 110.11 2.3 LegacyAcqn LGC 10.30 0.4 PeapackGladFinl PGC 31.01 2.1 SouthState SSB 85.84 1.8 WPP WPP 65.46 2.6 LeeEnterprises LEE 1.72 -8.5
EnelAmericas ENIA 10.92 1.4 GrAeroportuario OMAB 56.72 1.4 LibertyBroadbandA LBRDA 120.35 1.0 Pennant PNTG 31.50 4.8 SouthernFirstBcsh SFST 44.30 0.7 Walker&Dunlop WD 68.36 1.4 Lipocine LPCN 0.34 -4.9
EnstarGroup ESGR 210.45 0.6 GuarantyBcshrs GNTY 33.64 1.8 LincolnElectric LECO 96.32 1.4 PennsWoodsBncp PWOD 33.80 1.1 SoNtlBcpVA SONA 16.41 1.0 WestBancorp WTBA 25.12 0.4 Lovesac LOVE 11.38 -18.6
Thursday, December 12, 2019
EssaPharma EPIX 5.99 4.1 HanoverIns THG 140.00 0.7 LogitechIntl LOGI 44.47 1.1 PenskeAuto PAG 53.81 2.8 SouthsideBcshs SBSI 36.80 2.0 WestAllianceBcp WAL 55.99 3.7 MereoBioPharma MREO 1.47 -9.9
52-Wk % 52-Wk % 52-Wk % EverestRe RE 275.70 1.5 Harmonic HLIT 8.39 0.6 Lumentum LITE 75.33 7.5 Pentair PNR 46.23 1.0 SpecialOppFdPfB SPEpB 25.70 1.0 Woodward WWD 124.78 0.3 MiragenTherap MGEN 0.54 -7.8
Stock Sym Hi/Lo Chg Stock Sym Hi/Lo Chg Stock Sym Hi/Lo Chg Everi EVRI 13.94 6.4 HaynesIntl HAYN 39.04 1.3 LunaInnov LUNA 7.72 -0.8 PeoplesFinSvcs PFIS 50.10 0.2 St.Joe JOE 20.68 0.7 WyndhamDest WYND 50.29 1.1 MosaicAcqnWt MOSC.WS 0.37 -20.6
AudioCodes AUDC 25.20 2.6 CanPacRlwy CP 250.20 0.8 EvoquaWater AQUA 20.16 3.1 HlthSciencesAcqWt HSACW 1.60 7.2 MGM Resorts MGM 32.78 1.3 Perficient PRFT 44.24 0.8 StanleyBlackDck SWK 168.41 5.1 XP XP 37.46 0.5 NakedBrand NAKD 0.03 -5.6
Highs AuriniaPharm AUPH 18.88
AvenueTherap ATXI 8.26
-1.1
5.1
CapitalOne
CarolinaFin
COF 104.54
CARO 43.14
2.6
2.7
FB Financial
FMC
FBK
FMC
39.93
99.80
3.0
1.3
HlthSciencesAcq HSAC
HlthcrTrAmerPfdA HTIA
11.49
25.15
0.8
0.1
MalvernBancorp MLVF
Marriott MAR
23.45
145.59
1.3
1.6
Pfenex
Photronics
PFNX
PLAB
11.41
16.75
3.9
7.6
StanleyBlackDeckUn SWP
StanleyB&D Un SWT
110.64
109.84
3.6
4.0
ZaiLab
ZebraTech
ZLAB
ZBRA
43.29
259.39
2.7
0.6
NationalWt NHLDW
NebulaAcqnWt NEBUW
0.05 -57.9
0.60 -12.6
ABB ABB 23.64 3.0 AvidBioservices CDMO 7.57 0.8 CarriageSvcs CSV 27.80 0.5 FS Bancorp FSBW 64.41 1.1 HebronTech HEBT 9.00 -8.3 MarriottVacations VAC 128.00 0.3 PinnacleFinPtrs PNFP 64.98 3.4 Stantec STN 27.86 0.1 ZionsBancorp ZION 51.86 4.0 Noble NE 0.96 -6.8
AGBAAcquisition AGBA 10.05 0.1 AvonProducts AVP 5.16 3.0 CarterBk&Tr CARE 22.99 2.7 Fabrinet FN 63.22 3.8 HeritageCrystal HCCI 32.23 -1.6 Marsh&McLen MMC 110.47 1.2 Plexus PLXS 78.76 1.1 StarsGroup TSG 24.75 0.8 OneSmartIntl ONE 6.53 2.8
AMCI Acqn
ASETech
AMCI
ASX
10.11
5.70
0.2
7.2
AxcelisTechs ACLS 23.75 1.9 Carvana CVNA 97.06 2.4 FangddNetwork DUO 15.92 -4.2 Hilltop HTH 25.63 2.2 Masco MAS 47.58 2.2 PreferredBankLA PFBC 57.26 1.3 StateStreet STT 80.99 2.9 Lows Otelco OTEL 10.85 -1.6
BadgerMeter BMI 64.35 1.0 CntlValCmntyBk CVCY 21.83 0.5 Fellazo FLLC 9.93 ... Hilton HLT 107.23 0.8 MastechDigital MHH 9.78 0.2 PremierFinBncp PFBI 18.84 3.3 Stericycle SRCL 66.60 0.2 PingtanMarineEnt PME 1.07 -2.6
ASGN ASGN 69.39 1.4 AchieveLifeSci ACHV 0.66 -18.4
BancFirst BANF 61.57 1.8 CharlesRiverLabs CRL 149.22 0.6 FifthThirdBncp FITB 31.54 3.8 Hologic HOLX 53.74 1.1 Merck MRK 89.96 0.7 PrestigeCnsHlth PBH 39.46 0.3 STMicroelec STM 27.18 2.8 Pinterest PINS 17.64 -2.4
ASML ASML 287.28 1.1 AEternaZentaris AEZS 0.80 1.5
BancorpNJ BKJ 19.28 1.1 ChimeraInvt CIM 20.68 -0.2 FirstBancorpNC FBNC 40.67 1.4 HopeBancorp HOPE 15.26 1.8 MeridianBancorp EBSB 20.41 1.5 Primerica PRI 137.84 0.8 StockYardsBncp SYBT 42.53 1.1 PioneerPwrSols PPSI 2.18 1.3
AethlonMedical AEMD 1.83 -19.0
AccelEnt ACEL 12.00 2.1 BankofAmerica BAC 34.81 3.1 ChurchillCapII CCX.U 10.84 -0.2 FirstBusFinSvcs FBIZ 26.01 0.7 HorizonBancorp HBNC 19.38 1.5 Meridian MRBK 19.99 1.5 PrincipiaBio PRNB 50.25 0.7 SyneosHealth SYNH 57.96 2.2 PolymetMining PLM 0.26 2.2
AkersBiosciences AKER 2.67 -3.4
AccelEntWt ACEL.WS 2.70 0.4 BankofAmPfdL BMLpL 24.03 -0.3 ChurchillDowns CHDN 135.85 0.6 FirstCitizBcshA FCNCA 534.41 2.2 DR Horton DHI 56.12 -2.8 MethodeElec MEI 41.70 0.3 PureAcqn PACQ 10.60 1.8 Synnex SNX 129.85 1.5 PriorityIncmPfdE PRIFpE 24.45 0.4
Alarm.com ALRM 41.06 1.2
Accenture ACN 204.43 0.8 BankofCommerce BOCH 12.31 -1.3 CirrusLogic CRUS 76.93 0.9 FirstFinIN THFF 45.88 2.3 HuntingtonBcshs HBAN 15.63 2.6 MetroCityBkshs MCBS 17.03 1.1 PureCycle PCYO 12.88 -0.9 Sysco SYY 83.77 0.5 ProtectiveInsA PTVCA 14.01 0.4
AlpineIncmProp PINE 18.30 0.9
ActivisionBliz ATVI 58.81 3.7 BankofHawaii BOH 92.83 2.0 Citigroup C 77.52 2.0 FirstFoundation FFWM 16.99 2.4 HuronConsulting HURN 70.06 0.1 MicrochipTech MCHP 103.46 3.8 QCR Holdings QCRH 42.98 1.6 TIM Part TSU 17.73 2.4 PyxusIntl PYX 6.20 -6.7
AlterityTherap ATHE 0.81 -3.5
Acushnet GOLF 32.34 1.3 Barclays BCS 9.09 1.2 CtznCmntyBcp CZWI 12.75 2.0 FirstGuarBcshs FGBI 21.90 1.1 HyattHotels H 82.65 1.8 Microsoft MSFT 153.44 1.0 Qorvo QRVO 115.65 1.3 TRowePrice TROW 126.16 1.4 Q&K Intl QK 10.43 -15.0
AquaMetals AQMS 0.60 -5.8
AdvMicroDevices AMD 42.62 7.9 BarnesGroup B 63.14 1.8 CitizensFin CFG 40.65 3.6 FirstHawaiian FHB 29.29 2.4 ICICI Bank IBN 15.11 0.7 MiddlefieldBanc MBCN 28.13 5.4 Quidel QDEL 73.97 0.4 TTM Tech TTMI 14.04 1.5 RISE Education REDU 6.50 2.7
BK Tech BKTI 2.60 -0.4
AgilentTechs A 84.98 1.7 BauschHealth BHC 31.97 8.7 CoeurMining CDE 7.38 -1.7 FirstLongIsland FLIC 25.06 1.5 IEC Elec IEC 9.29 1.9 MidlandStBncp MSBI 28.92 0.8 RBC Bearings ROLL 174.94 2.9 TaiwanSemi TSM 58.62 4.8 RTW Retail RTW 0.88 -1.3
Benefitfocus BNFT 19.58 0.2
AirIndustries AIRI 1.88 0.6 BectonDicknsn BDX 266.57 1.7 CommerceBcshrs CBSH 66.51 2.1 FirstRepBank FRC 115.82 2.8 IHS Markit INFO 74.14 0.5 ModelN MODN 32.90 7.8 RaPharm RARX 47.48 ... TenetHealthcare THC 37.77 1.6 RiceBranTech RIBT 1.29 -33.2
BrickellBiotech BBI 1.67 0.4
AirLease AL 47.60 1.8 BenchmarkElec BHE 35.90 0.6 CommsSystems JCS 9.49 4.7 FlexionTherap FLXN 21.39 0.1 ITT ITT 74.09 1.4 MonocleAcqnWt MNCLW 0.85 11.4 RadianGroup RDN 26.32 0.3 TerritBanc TBNK 31.90 2.1 RitterPharm RTTR 0.16 -2.9
Bristol-MyersRt CELGr 0.40 -2.1
Alibaba BABA 206.00 -0.1 BerkHathwy A BRK.A 339769 1.6 CommBkSys CBU 69.83 2.9 FormFactor FORM 25.50 5.1 IVERICbio ISEE 6.38 12.4 MonolithicPower MPWR 174.02 2.8 RegionsFin RF 17.45 3.4 TheBancorp TBBK 12.69 3.4 Safe-T SFET 3.52 -3.3
CabalettaBio CABA 7.56 -3.7
Alico ALCO 36.48 -1.1 BerkHathwy B BRK.B 226.52 1.5 CmntyTrBcp CTBI 46.44 2.1 FormulaSys FORTY 74.00 7.6 Ichor ICHR 33.39 2.3 MonroeCapNts23 MRCCL 25.80 0.7 RenaissanceRe RNR 196.23 1.9 ThermoFisherSci TMO 322.17 0.4 SanchezMidstrm SNMP 0.22 4.7
Canaan CAN 5.55 -7.5
Allergan AGN 188.37 0.9 BestBuy BBY 85.55 1.8 COPEL ELP 15.87 -0.7 FortBrandsHome FBHS 65.65 0.6 IllinoisToolWks ITW 179.78 1.3 Moody's MCO 236.29 0.5 Rent-A-Center RCII 28.38 0.4 Timken TKR 57.18 4.8 SenesTech SNES 0.52 -3.6
Children'sPlace PLCE 53.62 8.3
Amdocs DOX 70.31 0.8 Bill.com BILL 37.75 61.4 CompassPfdC CODIpC 25.40 0.2 FortySeven FTSV 42.60 7.7 InfuSystems INFU 8.45 ... MorganStanley MS 50.87 2.5 Repay RPAY 15.00 0.9 Tiptree TIPT 8.30 -1.3 CorrevioPharma CORV 0.37 -15.2 ShiftPixy PIXY 0.20 -7.4
AmerantBancorpB AMTBB 17.50 8.8 BioNTech BNTX 34.00 -4.7 CompassDiversif CODI 25.05 1.7 Franchise FRG 17.30 17.6 Ingersoll-Rand IR 134.71 1.0 MorphoSys MOR 35.96 3.5 ResMed RMD 152.53 1.2 TompkinsFin TMP 91.10 1.6 CreativeRealWt CREXW 0.05 10.4 SiennaBiopharm SNNA 0.07 -34.5
AmericanFin AFG 111.86 0.6 Bio-RadLab B BIO.B 361.54 5.4 ConnectOneBncp CNOB 25.75 1.3 FranklinElec FELE 57.35 0.3 InglesMarkets IMKTA 46.56 1.0 NXP Semi NXPI 126.06 2.1 Rexnord RXN 32.71 1.7 Toro TTC 81.47 1.5 CrossTimbers CRT 7.38 2.4 SimonProperty SPG 142.40 -1.0
AmericanWoodmark AMWD 108.60 1.1 BlackRock BLK 503.69 1.7 Constellium CSTM 14.94 1.4 FrequencyTherap FREQ 20.49 11.6 Inseego INSG 7.90 0.1 NantKwest NK 2.30 14.6 RichmondMutBncp RMBI 15.15 1.3 TownsquareMedia TSQ 9.40 0.2 Dropbox DBX 16.63 -2.8 SinoGlobalShip SINO 0.41 -8.3
Ameriprise AMP 169.09 2.4 Blackstone BX 55.21 -1.4 Cosan CZZ 20.31 1.3 FullerHB FUL 52.40 1.6 InsightEnt NSIT 67.43 1.2 NatlSecurity NSEC 15.61 0.6 RushEnt A RUSHA 49.27 3.0 Tredegar TG 23.47 1.5 Dynatronics DYNT 0.63 8.8 SmileDirectClub SDC 7.56 -3.9
Ametek AME 99.84 0.6 BostonSci BSX 44.85 1.9 CostamarePfdB CMREpB 25.40 -0.6 GDS Holdings GDS 49.61 0.6 InsAcquisition INSU 10.00 0.9 NeoGenomics NEO 27.23 1.4 RushEnt B RUSHB 47.95 3.5 TriStateCapital TSC 25.53 1.3 EHang EH 11.77 -0.1 SoftwareAcqn SAQNU 10.01 0.4
Amgen AMGN 237.24 0.8 BridgewaterBcshs BWB 13.27 1.0 Costamare CMRE 9.42 3.3 GSAcquisitionWt GSAH.WS 2.52 4.8 Intellicheck IDN 8.35 -1.4 NeoleukinTherap NLTX 9.45 7.1 SEI Investments SEIC 65.76 1.4 TritonIntl TRTN 38.73 0.9 Elastic ESTC 60.10 -1.6 SparkNetworks LOV 4.39 -0.2
Amphenol APH 108.23 2.0 Bristol-Myers BMY 64.22 2.5 CountyBancorp ICBK 26.47 2.4 GS Acquisition GSAH.U 12.22 0.9 IntlBcshs IBOC 43.96 2.1 NewYorkMtgPfdE NYMTM 25.20 -0.1 SPX SPXC 52.17 1.5 TriumphBancorp TBK 38.85 0.5 FalconMineralsWt FLMNW 0.28 -32.1 Sprint S 5.16 -1.1
AnixterIntl AXE 90.34 0.6 Broadcom AVGO 330.16 2.5 Crawford A CRD.A 11.71 2.5 GSAcquisition GSAH 11.50 0.3 Itron ITRI 84.43 1.8 Newmark NMRK 13.62 1.1 SPX FLOW FLOW 49.45 2.3 TruistFinl TFC 56.19 4.5 Farmmi FAMI 0.95 -2.9 SummitWireless WISA 0.62 -2.9
ApolloInv AINV 17.42 1.0 BroadcomPfdA AVGOP1191.65 2.3 CrescentAcqn CRSA 9.97 0.2 Gallagher AJG 95.24 0.2 JELD-WEN JELD 23.86 0.8 NewmontGold NEM 41.28 0.5 Sanofi SNY 49.58 1.0 TwelveSeasRt BROGR 0.80 4.0 Ferrellgas FGP 0.41 -5.3 Synalloy SYNL 11.45 0.4
Apple AAPL 272.56 0.3 BrooklineBcp BRKL 16.47 1.6 CurtissWright CW 143.34 0.7 Gentherm THRM 45.10 1.6 JPMorganChase JPM 138.47 2.9 Nike NKE 98.18 0.6 SchwabC SCHW 51.65 3.0 TwoRiverBancorp TRCB 21.86 1.7 GSE Systems GVP 1.04 -1.8 TraconPharm TCON 2.50 -10.4
AppliedIndlTechs AIT 67.65 4.2 Brown&Brown BRO 38.63 1.0 DanaherPfdA DHRpA1172.25 1.5 GeospaceTech GEOS 17.05 2.2 Jabil JBL 40.53 1.6 NorthernTrust NTRS 110.13 2.1 SchweitzerMaud SWM 45.90 1.6 UMH Prop UMH 16.32 -1.9 GaleraTherap GRTX 8.16 -7.0 TabulaRasaHlth TRHC 38.03 -1.5
ApreaTherap APRE 44.30 10.3 BuildersFirstSrc BLDR 26.07 -2.4 Danaher DHR 153.02 1.1 GermanAmerBncp GABC 34.93 1.9 JefferiesFin JEF 21.63 2.8 NorthwestPipe NWPX 34.80 -0.3 Seaspan SSW 14.18 1.7 Unifirst UNF 212.41 0.4 GreenlandTech GTEC 5.58 -4.0 TaubmanCtrs TCO 30.58 -1.2
AptoseBiosci APTO 4.53 0.7 CBRE Group CBRE 59.34 0.9 DarlingIngred DAR 25.37 2.6 GlobeLife GL 106.63 1.4 Kadant KAI 106.55 3.7 NortonLifeLock NLOK 26.71 -0.8 SecurityNatFin SNFCA 6.13 1.2 UnionAcqnII LATNU 10.25 0.3 Greenlane GNLN 2.35 10.3 ThunderBridgeII THBRU 9.98 0.3
Arconic ARNC 31.75 1.2 CF Finance CFFA 10.22 0.1 DaVita DVA 73.65 0.8 GlobusMedical GMED 58.25 1.6 Kadmon KDMN 5.38 -4.8 NVIDIA NVDA 224.80 3.1 SenecaFoods B SENEB 39.00 -0.5 UnitedMicro UMC 2.74 2.3 HancockJaffeLabs HJLI 0.38 -1.7 Tocagen TOCA 0.46 -26.4
AresMgmt ARES 33.94 -0.4 CF FinanceWt CFFAW 0.90 -2.4 DecipheraPharm DCPH 60.14 0.9 GoldResource GORO 5.30 -2.1 KaiserAlum KALU 115.22 1.5 OpusBank OPB 26.44 3.8 ServisFirstBcshs SFBS 37.91 2.0 UnitedRentals URI 163.55 4.0 HornbeckOffshore HOS 0.33 -2.5 TottenhamAcqnIRt TOTAR 0.14 -2.0
ArrowFinancial AROW 37.48 1.5 CNO Financial CNO 18.81 3.6 DtscheBkTrII DXB 25.78 0.5 GoldmanSachsBDC GSBD 22.36 1.0 Kaman KAMN 67.59 1.8 Oshkosh OSK 94.27 1.7 Sibanye-Stillwater SBGL 9.57 -0.4 US Bancorp USB 60.70 2.2 IderaPharm IDRA 1.55 -0.6 TransEnterix TRXC 1.84 4.9
ArtisanPtrsAsset APAM 31.24 2.6 CRA Intl CRAI 55.21 1.7 Diodes DIOD 50.46 3.2 GoldmanSachs GS 226.78 2.2 KeyCorp KEY 20.40 3.8 PNC Fin PNC 159.64 2.6 SierraBancorp BSRR 28.85 2.2 UnitedHealth UNH 283.99 1.1 Inpixon INPX 0.04 -3.3 TwelveSeasInvt BROG 8.42 -8.0
Arvinas ARVN 44.36 0.7 CRH CRH 39.68 0.9 Donaldson DCI 57.21 1.3 GoldmanSachsPfC GSpC 23.15 -0.1 LGL Systems Un DFNSU 10.10 0.2 PPG Ind PPG 134.14 1.1 SiliconMotion SIMO 49.09 3.1 UrstadtBiddle UBP 19.64 -1.8 InsigniaSystems ISIG 0.76 -5.1 Ventas VTR 54.89 -2.1
AsburyAutomotive ABG 123.45 7.1 CSW Industrials CSWI 77.29 1.5 Dover DOV 115.13 1.2 Gorman-Rupp GRC 38.66 1.6 LKQ LKQ 36.24 0.7 PRA Group PRAA 37.59 -0.1 SilverSpikeAcqn SSPK 9.92 0.7 ValmontInds VMI 147.40 2.0 InterNAP INAP 1.03 -3.7 WestwaterRscs WWR 2.25 -5.1
AssuredGuaranty AGO 50.44 1.6 CaesarsEnt CZR 13.20 1.3 ESCO Tech ESE 90.00 0.8 GossamerBio GOSS 27.15 -4.3 LMP Auto LMPX 22.95 44.7 Paccar PCAR 83.18 1.9 SilvercorpMetals SVM 5.83 -3.9 ValueLine VALU 30.58 6.7 IturanLocation ITRN 21.53 1.6 YoungevityPfdD YGYIP 23.50 -1.0

Mutual Funds Data provided by

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NAV Chg %Ret Fund
Net YTD
NAV Chg %Ret Fund
Net YTD
NAV Chg %Ret Fund
Net YTD
NAV Chg %Ret Fund
Net YTD
NAV Chg %Ret Fund
Net YTD
NAV Chg %Ret Fund
Net YTD
NAV Chg %Ret
500IdxInstPrem110.53 +0.95 28.8 SrsEmrgMkt 20.42 +0.41 24.4 EqInc 19.23 +0.01 24.6 PIMCO Funds I2 BalAdml 39.02 +0.13 20.2 USGroAdml 112.66 +0.43 29.6 WndsrII 39.13 +0.44 27.1
Top 250 mutual-funds listings for Nasdaq-published share classes by net assets. Contrafund K6 14.13 +0.08 27.5 SrsGlobal 13.16 +0.11 18.8 JPMorgan R Class Income NA ... NA CAITAdml 12.10 -0.01 6.8 ValAdml 46.54 +0.53 24.3 VANGUARD INDEX FDS
e-Ex-distribution. f-Previous day’s quotation. g-Footnotes x and s apply. j-Footnotes e ExtMktIdxInstPre 65.65 +0.42 25.6 SrsGroCoRetail 19.16 +0.10 35.6 CoreBond 11.86 -0.11 8.5 PIMCO Funds Instl CapOpAdml r165.32 +2.25 25.2 WdsrllAdml 69.44 +0.78 27.2 MdCpVlAdml 61.31 +0.61 26.1
and s apply. k-Recalculated by Lipper, using updated data. p-Distribution costs apply, IntlIdxInstPrem 43.51 +0.24 20.0 SrsIntlGrw 17.84 +0.12 33.1 CorePlusBd 8.46 -0.04 8.7 IncomeFd NA ... NA DivAppIdxAdm 33.48 +0.23 27.7 WellsIAdml 66.84 ... 15.4 SmValAdml 58.50 +0.61 21.1
12b-1. r-Redemption charge may apply. s-Stock split or dividend. t-Footnotes p and r MidCpInxInstPrem 23.81 +0.17 28.3 SrsIntlVal 10.15 +0.09 18.0 Lord Abbett A Price Funds EMAdmr 36.17 +0.43 16.3 WelltnAdml 76.07 +0.34 21.1 TotBd2 11.00 -0.05 8.4
apply. v-Footnotes x and e apply. x-Ex-dividend. z-Footnote x, e and s apply. NA-Not SAIUSLgCpIndxFd 17.10 +0.15 28.9 TotalBond 10.88 -0.05 9.4 ShtDurIncmA p 4.21 ... 5.2 BlChip 121.54 +0.55 26.6 EqIncAdml 80.31 +0.87 23.3 WndsrAdml 77.91 +1.10 28.3 TotIntl 17.65 +0.12 18.7
available due to incomplete price, performance or cost data. NE-Not released by Lipper; SmCpIdxInstPrem 21.26 +0.17 23.8 Fidelity SAI Lord Abbett F EqInc 31.57 -1.45 24.6 ExplrAdml 100.53 +0.84 29.3 VANGUARD FDS TotSt 78.49 +0.65 28.1
data under review. NN-Fund not tracked. NS-Fund didn’t exist at start of period. TMktIdxInstPrem 90.17 +0.75 28.3 TotalBd 10.48 -0.04 9.4 ShtDurIncm 4.20 -0.01 5.1 EqIndex 84.12 +0.16 28.6 ExtndAdml 94.28 +0.61 25.6 DivdGro 31.22 +0.19 28.7 VANGUARD INSTL FDS
USBdIdxInstPrem 11.91 -0.06 8.3 First Eagle Funds Lord Abbett I Growth 72.68 +0.37 27.3 GNMAAdml 10.54 -0.02 5.7 INSTTRF2020 24.45 +0.05 16.3 BalInst 39.03 +0.13 20.2
Fidelity Advisor I GlbA 60.42 +0.41 18.7 ShtDurInc p 4.20 -0.01 5.2 HelSci 84.12 +0.54 25.5 GrwthAdml 91.46 +0.46 33.4 INSTTRF2025 25.00 +0.08 18.1 DevMktsIndInst 14.03 +0.08 19.8
Thursday, December 12, 2019 Metropolitan West
NwInsghtI 34.19 +0.24 26.7 FPA Funds InstlCapG 44.73 +0.18 25.3 HlthCareAdml r 93.02 +0.63 21.0 INSTTRF2030 25.34 +0.10 19.3 DevMktsInxInst 21.92 +0.12 19.7
Net YTD Net YTD Net YTD 18.8 TotRetBd 10.92 -0.05 8.6
Fund NAV Chg %Ret Fund NAV Chg %Ret Fund NAV Chg %Ret Fidelity Freedom FPACres 34.45 +0.27 IntlStk 18.53 +0.15 23.8 HYCorAdml r 5.94 +0.01 15.2 INSTTRF2035 25.68 +0.13 20.6 ExtndInst 94.28 +0.62 25.6
TotRetBdI 10.92 -0.05 8.8
FF2020 16.63 +0.07 16.5 Franklin A1 MidCap 98.59 +0.83 29.1 InfProAd 26.09 -0.13 7.8 INSTTRF2040 26.02 +0.15 21.8 GrwthInst 91.47 +0.46 33.4
American Century Inv AggBdInst 11.21 -0.05 9.1 IntSmCo 19.08 +0.06 20.9 TRBdPlan 10.27 -0.05 8.9 IntlGrAdml 100.95 +0.91 27.4 InPrSeIn 10.63 -0.05 7.8
FF2025 14.58 +0.07 17.8 CA TF A1 p 7.65 -0.01 9.0 N Inc 9.70 -0.03 9.0 INSTTRF2045 26.27 +0.17 22.7
Ultra 52.91 +0.25 30.9 CorBdInst 11.55 -0.06 9.7 IntSmVa 19.43 +0.10 18.1 MFS Funds Class I ITBondAdml 11.80 -0.06 9.9 InstIdx 287.89 +2.48 28.8
FF2030 18.16 +0.11 19.9 IncomeA1 p 2.31 +0.01 13.8 NHoriz 64.87 -0.17 34.6 INSTTRF2050 26.30 +0.17 22.7
American Funds Cl A BlackRock Funds LgCo 24.56 +0.21 28.8 ValueI 44.76 +0.48 28.2 ITIGradeAdml 10.02 -0.04 10.0 InstPlus 287.92 +2.49 28.9
Freedom2020 K 16.61 +0.06 16.5 FrankTemp/Frank Adv OverS SF r 11.24 +0.09 20.9 IntlVal 37.86 +0.37 17.9
AmcpA p 34.20 +0.27 23.3 HiYldBd Inst 7.73 +0.01 14.2 TAUSCoreEq2 20.25 +0.22 27.4 MFS Funds Instl LTGradeAdml 11.13 -0.11 20.7 InstTStPlus 68.24 +0.56 28.3
Freedom2025 K 14.56 +0.07 17.8 IncomeAdv 2.29 +0.01 14.0
IntlEq 27.23 -0.74 22.7
R2020 22.97 +0.09 17.6 LifeCon 21.06 +0.02 14.6
AMutlA p 44.29 +0.30 19.8 BlackRock Funds A US CoreEq1 25.97 +0.27 27.9 R2025 MidCpAdml 217.77 +1.59 28.6 MidCpInst 48.11 +0.35 28.6
Freedom2030 K 18.14 +0.10 19.9 FrankTemp/Franklin A Northern Funds
18.37 +0.09 19.1 LifeGro 36.00 +0.19 21.0
BalA p 28.83 +0.12 17.4 GlblAlloc p 19.58 ... 15.1 US CoreEq2 23.86 +0.27 27.2 RisDv A p 68.52 +0.60 27.8 R2030 26.85 +0.15 20.4 MuHYAdml 11.79 -0.01 9.2 MidCpIstPl 237.27 +1.74 28.6
BondA p US Small Freedom2035 K 15.25 +0.12 22.2 StkIdx 36.76 +0.32 28.7 LifeMod 28.91 +0.09 17.8
RealEstaInstl 19.82 -0.27
13.23 -0.05 7.6 BlackRock Funds Inst 35.51 +0.42 20.3
R2035 MuIntAdml 14.48 -0.01 6.8 24.2
CapIBA p Freedom2040 K 10.67 +0.10 23.1 FrankTemp/Franklin C Nuveen Cl I 19.74 +0.12 21.4 PrmcpCor 29.51 +0.41 26.1 SmCapInst 78.47 +0.60
63.46 +0.26 15.5 EqtyDivd 20.57 +0.25 25.6 US SmCpVal 34.83 +0.51 17.0 MuLTAdml 11.97 -0.01 8.6 25.3
Fidelity Invest Income C t 2.34 +0.01 13.0
HYMunBd 18.00 -0.01 11.9 R2040 28.17 +0.19 22.3 STAR 28.38 +0.13 20.5 STIGradeInst 10.71 -0.02
CapWGrA 51.54 +0.41 22.3 MultiAstIncome 10.90 ... 12.8 US TgdVal 23.59 +0.39 20.2 MuLtdAdml 11.08 -0.01 3.9 5.5
Balanc 24.80 +0.14 22.3 FrankTemp/Temp Adv Oakmark Funds Invest Value 37.98 +0.47 24.2 TgtRe2015 15.77 +0.01 13.8 STIPSIxins 24.77 -0.03
EupacA p 55.99 +0.53 24.3 StratIncOpptyIns 9.92 ... 6.7 USLgVa 39.10 +0.59 23.7 MuShtAdml 15.85 ... 2.4 4.4
FdInvA p 64.08 +0.60 24.8 Bridge Builder Trust Dodge & Cox BluCh 104.92 +0.75 29.5 GlBondAdv p 10.59 ... -0.8 OakmrkInt 24.36 -0.16 19.1 PRIMECAP Odyssey Fds
PrmcpAdml r151.82 +2.10 25.5 TgtRe2020 33.28 +0.07 16.2 TotBdInst 11.04 -0.05 8.5
GwthA p 53.39 +0.33 24.9 CoreBond 10.44 -0.05 8.8 Balanced 106.01 +1.21 18.6 Contra 13.81 +0.08 26.5 Guggenheim Funds Tru Old Westbury Fds AggGrowth r 46.58 +0.40 21.6
RealEstatAdml128.02 -1.78 24.1 TgtRe2025 20.08 +0.06 18.0 TotBdInst2 11.00 -0.05 8.4
HI TrA p 9.98 +0.03 10.3 CorePlusBond 10.31 -0.04 8.9 GblStock 13.39 +0.22 21.4 ContraK 13.82 +0.07 26.6 TotRtnBdFdClInst 27.14 -0.12 4.6 LrgCpStr 14.77 +0.10 22.7 Growth r 42.35 +0.55 21.9
SmCapAdml 78.47 +0.60 25.2 TgtRe2030 36.76 +0.14 19.3 TotBdInstPl 11.04 -0.05 8.5
ICAA p 40.61 +0.31 21.6 Intl Eq 12.02 +0.11 20.7 Income 14.15 -0.05 9.3 CpInc r 10.17 +0.06 17.8 Harbor Funds Parnassus Fds Stock r 36.18 +0.56 25.8
SmGthAdml 68.62 +0.28 30.1 TgtRe2035 22.67 +0.11 20.5 TotIntBdIdxInst 34.76 -0.10 7.9
IncoA p 23.66 +0.12 17.3 Del Invest Instl Intl Stk 44.19 +0.54 19.7 GroCo 21.53 +0.12 34.4 CapApInst 80.06 +0.21 29.2 ParnEqFd 46.64 +0.44 29.3 Schwab Funds
STBondAdml 10.55 -0.02 4.5 TgtRe2040 39.31 +0.23 21.7 TotIntlInstIdx r118.10 +0.81 18.8
N PerA p 47.74 +0.36 26.7 Value 22.79 +0.23 18.1 Stock 203.02 +3.66 23.3 GrowCoK 21.56 +0.12 34.5 Harding Loevner PGIM Funds Cl Z 1000 Inv r 71.83 +0.59 28.8 STIGradeAdml 10.71 -0.02 5.5 TgtRe2045 24.78 +0.17 22.6 TotItlInstPlId r118.13 +0.81 18.8
NEcoA p 47.91 +0.45 23.4 Dimensional Fds DoubleLine Funds InvGrBd 11.56 -0.05 9.4 IntlEq NA ... NA TotalReturnBond NA ... NA S&P Sel 49.35 +0.43 28.8 TotBdAdml 11.04 -0.05 8.4 TgtRe2050 39.87 +0.26 22.6 TotStInst 78.54 +0.64 28.2
NwWrldA 71.55 +0.78 24.7 5GlbFxdInc 10.97 -0.01 4.0 CoreFxdIncmI 11.07 -0.04 7.6 LowP r 49.52 +0.48 23.3 Invesco Funds A PIMCO Fds Instl TSM Sel r 55.90 +0.46 28.3 TotIntBdIdxAdm 23.16 -0.07 7.9 TgtRet2055 43.28 +0.28 22.6 ValueInst 46.53 +0.53 24.2
SmCpA p 59.88 +0.26 27.7 DFARlEst 39.89 -0.61 23.3 TotRetBdI 10.66 -0.03 5.8 Magin 11.35 +0.03 27.9 EqIncA 10.69 +0.09 18.6 AllAsset 11.85 +0.04 NA TIAA/CREF Funds TotIntlAdmIdx r 29.53 +0.20 18.8 TgtRetInc 14.10 ... 12.3 WCM Focus Funds
TxExA p 13.34 -0.01 7.1 EmgMktVa 28.13 +0.36 6.4 Edgewood Growth Instituti OTC 12.56 +0.08 35.3 Invesco Funds Y TotRt 10.38 -0.07 8.0 BdIdxInst 11.10 -0.05 8.1 TotStAdml 78.53 +0.65 28.2 TotIntBdIxInv 11.59 -0.03 7.9 WCMFocIntlGrwIns 18.51 +0.13 32.3
WshA p 49.04 +0.42 23.4 EmMktCorEq 21.15 +0.30 12.1 EdgewoodGrInst 37.26 ... 29.4 Puritn 22.60 +0.09 19.1 DevMktY 45.39 +0.57 20.8 PIMCO Funds A VANGUARD ADMIRAL TxMCapAdml163.45 +1.35 28.9 WellsI 27.59 ... 15.4 Western Asset
Baird Funds IntlCoreEq 13.65 +0.07 19.4 Fidelity SAIUSQtyIdx 14.67 +0.09 31.4 JPMorgan I Class IncomeFd NA ... NA 500Adml 293.59 +2.54 28.8 TxMIn r 14.01 +0.08 19.7 Welltn 44.04 +0.19 21.0 CorePlusBdI NA ... NA
 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.

B10 | Friday, December 13, 2019 * *** THE WALL STREET JOURNAL.

BANKING & FINANCE

Banks Earned Low Fees on Aramco IPO

Underwriters saw could be expected due to the
Saudi government last month
shortfall as focus of abandoning plans to market
sale shifted to local the issue to international in-
vestors.
investors That move came after many
international investors balked
BY BEN DUMMETT at valuing Aramco at Prince
AND JULIE STEINBERG Mohammed’s initial target val-
uation of $2 trillion. In re-
The bulk of the banks lead- sponse, the energy producer
ing the Aramco deal earned lowered its target valuation to
small fees of between $3 mil- $1.6 trillion to $1.7 trillion and
lion and $4 million each for decided to focus selling the is-
their roles in the world’s larg- sue to a local and regional in-
est-ever IPO, according to peo- dividual and institutional in-
ple familiar with the matter, vestor community, a strategy
after the company sidelined it has continued to pursue to
the banks as it switched its fo- boost Aramco’s valuation since
cus to local investors. it started trading on the Saudi
The Saudi government Tadawul exchange Wednesday.
briefly achieved its coveted $2 Typically, an IPO of
trillion valuation for Aramco Aramco’s huge size would give
Thursday. the company leverage to nego-
Saudi Arabian Oil Co., as tiate some sort of discounted
Aramco is officially known, underwriting fees. High-profile
had tasked nine investment IPOs such as Facebook Inc.’s

AMR NABIL/ASSOCIATED PRESS

banks with leading the offer- 2012 IPO generated underwrit-
ing, which earlier this month ing fees of 1.1% of the offering
raised $25.6 billion for the size. That is at the low end of
Saudi government from the the 1% to 7% range that banks
sale of a 1.5% stake. can command depending on
That eclipsed Alibaba the IPO venue.
Group Holding Ltd.’s $25 bil- Aramco did even better. It is
lion IPO in 2014 as the world’s expected to pay a total fee of
biggest. A trader talks to others in front of a screen displaying Saudi stock market values at the Arab National Bank in Riyadh, around $54 million to the nine
Citigroup Inc., Morgan global coordinators, which rep-
Stanley, Credit Suisse Group following the payout of addi- PLC and local Saudi banks month placing those banks in work that might result from resents a fee of less than 1% of
AG, JPMorgan Chase & Co., tional incentive fees, some NCB Capital and Samba Capi- charge of overseeing orders Saudi Crown Prince Moham- the total offering size.
Goldman Sachs Group Inc. people familiar with the mat- tal, fared better, each earning for the offering. med bin Salman’s plan to di- Still, the ultimate fees
and Bank of America Corp. ter said. at least $10 million, according The big global banks had versify the country’s oil-de- earned by the underwriters
are each set to earn between Specifics around those pay- to a person familiar with the long coveted a role helping pendent economy. could increase if Aramco de-
$3 million and $4 million for outs couldn’t be learned. matter. sell Aramco’s IPO, both for the The IPO fees were never ex- cides to seek an international
their work. The three other global un- These higher fees resulted fees on the deal itself and for pected to be that large, but listing and use the same group
Those totals may increase derwriters, HSBC Holdings in part from Aramco last additional advisory and other they still fell short of what of banks for that effort.

Winter Chill Sends Natural Gas Up Regulators Seek to

BY RYAN DEZEMBER

Forecasts for cooler

Revamp Rules on
weather to close out the
month buoyed natural-gas
prices, halting a slide that has
trimmed roughly 20% off the
Loans in Poor Areas
cost of the heating fuel since BY ANDREW ACKERMAN ate-income communities,” the
early November. Fed said in a statement after
Natural-gas futures for WASHINGTON—Federal reg- the overhaul was announced.
January delivery rose 3.8% to ulators on Thursday proposed “No decisions have been made
$2.328 per million British an overhaul of rules governing about how the Federal Reserve
thermal units. That is down how banks lend hundreds of bil- will proceed.”
about 44% from a year earlier lions of dollars in low-income Advocacy groups and some
and still the lowest mid-De- neighborhoods, setting up a House Democrats, including
cember level in four years, potential break with the Federal Maxine Waters of California,
but the forecast for chilly Reserve. chairwoman of the Financial
MARK MORAN/THE CITIZENS’ VOICE/ASSOCIATED PRESS

temperatures allayed fears The overhaul is a priority for Services Committee, say the
among traders and analysts of Comptroller of the Currency Jo- plan could inadvertently re-
an drop below $2. seph Otting, who says it will strict lending in low-income ar-
“From a selloff perspective, boost lending under the Com- eas. And some bank lobbyists
the big move has happened,” munity Reinvestment Act and have privately expressed con-
said Ron Ozer, chief invest- make existing requirements cern it will increase costs of
ment officer at Statar Capital, more transparent and consis- compliance with the act.
a gas-focused hedge fund. tent. The act requires banks to Mr. Otting dismissed those
“The market is very short so serve borrowers of all income concerns. “If you don’t like this,
getting a material move lower levels in their communities. you are either economically ad-
would need warm weather.” The plan is backed by a sec- vantaged by the current struc-
Hedge funds and other ond regulator, the Federal De- ture or you don’t understand
money managers have built posit Insurance Corp., but not it,” he said this week. In discus-
up one of the biggest short by the Fed, which is consider- sions with major banks, “nine
trades, or bets that natural- Some hedge funds have built up a large short position, betting prices of the commodity will fall. ing a separate overhaul, ac- out of 10 are supportive of the
gas prices will fall, of the past cording to people familiar with direction we’re heading.”
decade, according to Com- week temperature forecasts week. That was a little less years of records on all sides the central bank’s thinking. In 2014, community groups
modity Futures Trading Com- lower for the eastern half of than some analysts had ex- of the balance, supply growth Community groups have also opposed the acquisition of One-
mission data. the country. pected. Yet the withdrawal is beginning to slow and ex- objected to the plan. West Bank by CIT Group Inc.
The bearish wager rivals in “The general idea is to go a brought stockpiles in line ports are picking up.” Officials at all three regula- Mr. Otting was chief executive
size a big short that was put bit colder in the 6-10 day with their five-year average. Elsewhere in energy mar- tors say they hope they can ulti- of OneWest at the time, and
on in August and subse- (forecast) and slow down the Analysts with RBC Capital kets oil prices rose on re- mately agree on a plan. “We Steven Mnuchin, now Treasury
quently blown out by an un- warming trends in the 11-15 Markets on Wednesday low- newed hopes for a trade deal worked very hard to try to get secretary, was chairman. One-
characteristically steamy Sep- day (forecast),” Commodity ered their predictions for av- between the U.S. and China aligned with the OCC on a pro- West was accused of abusing
tember that amped up Weather Group wrote in a erage gas prices for the cur- and an International Energy posal, and my hope is that we homeowners during the fore-
demand for gas to power air note to clients. rent quarter, to $2.60 per Agency report that projected can still do that,” Fed Chairman closure process, a charge the
conditioners. Forecasts like that were million British thermal units slower supply growth next Jerome Powell said Wednesday. bank disputed. The merger
A significantly colder turn enough for traders to shrug and next year more than 20 year. “I don’t know whether that will went through, but Mr. Otting
to temperatures could risk off a mildly bearish report cents to $2.63, yet warned cli- West Texas Intermediate, be possible or not.” has since made an overhaul of
the current wager on declin- from the U.S. Energy Informa- ents from getting too bearish. the U.S. benchmark, closed up Friction over the proposal the CRA a priority.
ing prices. Meteorologists tion Administration that de- “We continue to believe 0.7% at $59.18 a barrel. Brent between the Fed and OCC has In an acknowledgment that
that cater to traders on tailed a 73-billion-cubic-foot that there is upside,” they crude, the global price, gained been palpable behind the the proposed framework could
Thursday nudged their two- draw from gas stockpiles last wrote. “In our view, after 0.75% to settle at $64.20. scenes. In November, Mr. Otting be costly to banks, the OCC and
sent an email to Fed governor FDIC said lenders with less than
Lael Brainard, who is leading $500 million in assets could opt
PayPal Sues on
Card Regulation
Global Oil Supply Seen Rising Fed efforts on the issue, saying
the central bank was slow-
walking the overhaul, according
to people familiar with the
out. That threshold would cover
about three-quarters of banks
overseen by the FDIC, though
the firms generate a fraction of
BY YUKA HAYASHI BY DAVID HODARI ket, the IEA said, adding that gains for Kuwait, Ecuador and message. Fed officials objected the $480 billion in annual CRA
it was leaving unchanged its cut-exempt Venezuela, were to that characterization and lending and investment.
WASHINGTON— PayPal Global oil inventories will oil-demand growth forecasts balanced by small decreases said the OCC was moving for- The CRA was passed in 1977
Holdings Inc. sued a federal rise in the first quarter despite for this year and next. from several other countries. ward with a plan that lacks an- to combat redlining, a practice
banking regulator, alleging that attempts by the Organization The IEA said it was reduc- The IEA’s report came the alytical rigor, the people said. in which banks wouldn’t lend in
its new rule has hampered the of the Petroleum Exporting ing its production growth fore- day after OPEC released its “Any modernization of the lower-income communities.
company’s ability to offer credit Countries and its allies to bal- cast “to take account of lower own monthly market report, in Community Reinvestment Act Regulators and Congress have
products and has created con- ance the market, the Interna- output from participants in which the cartel also held its must further the goal at the turned the act into a public test
fusion among users of its popu- tional Energy Agency said the OPEC+ deal and a weaker demand-growth forecasts for heart of the statute—encourag- evaluating how many loans,
lar digital-payment services Thursday. growth outlook for Brazil, 2019 and 2020, while holding ing banks to meet the credit branches and investments a
PayPal and Venmo. In its closely watched oil- Ghana and the United States.” its non-OPEC supply growth needs of local low- and moder- bank has to serve the poor.
The lawsuit challenges the market report, the IEA said it A stagnant oil price, partly forecast at 2.17 million barrels
regulation rolled out by the was trimming its 2020 non- driven by heavy supply from a day.
Consumer Financial Protection OPEC oil supply-growth fore- the U.S.—which became a net The two reports also took
Bureau in April. While the rule’s cast by 200,000 barrels a day exporter in September—was relatively similar stances on
aim is to improve consumer to 2.1 million barrels. one of the drivers of the new global trade.
protection for prepaid payment However, it still expects OPEC+ deal. Even so, “the Torpid economic growth,
cards, it also extends to “digital global inventories to increase market has done its own sums partly thanks to the trade war
wallets,” any financial products by 700,000 barrels a day in and the reaction to oil’s new between the U.S. and China,
capable of holding cash bal- the first three months of next deal has so far been muted,” has been cited as a drag on
ances on cards or devices. year. the agency noted. oil-demand growth in numer-
ANNA MONEYMAKER/BLOOMBERG NEWS

As a result, the rule brought The agency’s prediction As a whole, the cartel’s pro- ous reports from the two or-
under its coverage digital-pay- came despite last week’s news duction slipped 300,000 bar- ganizations in 2019.
ment tools such as PayPal and that OPEC and its allies had rels a day in November, with On Wednesday, OPEC said
Venmo, despite the industry’s agreed to a new production Saudi output down by the the “global trade slowdown
claim that digital wallets are deal to deepen oil-output cuts same amount after the na- has likely bottomed out,” and
fundamentally different from by a further 500,000 barrels a tion’s production swung wildly the IEA echoed that view on
prepaid cards. Apple Cash, Ap- day through the end of March. after attacks on processing fa- Thursday.
ple’s payment app, comes under That move means the coali- cilities at Abqaiq and Khurais Brent crude, the global
the rule’s oversight, while Apple tion will hold back roughly 1.7 that temporarily downed 5% of benchmark, settled 0.5%
Pay, which doesn’t store money, million barrels a day from global supply. higher at $64.20 a barrel,
doesn’t. The CFPB didn’t re- global oil markets, but it won’t The rest of the cartel’s while U.S. crude rose 0.7% to Comptroller of the Currency Joseph Otting wants to boost bank
spond to requests for comment. be enough to balance the mar- movements, including slight $59.18 a barrel. lending under the Community Reinvestment Act.
 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.
THE WALL STREET JOURNAL.
Pound
Surges
On Polls
BY CAITLIN OSTROFF
AND ANNA ISAAC
The British pound rose
sharply Thursday evening as
exit-poll results from the Brit-
ish election pointed to a strong
victory for Boris Johnson’s
Conservative
CURRENCIES Party.
Late Thurs-
day, the pound was up 2.3% to
$1.346, its highest level since
May 2018. The euro rose 0.4%
against the dollar, buying
$1.1175, as Mr. Johnson’s vic-
tory was seen as likely to bring
some near-term certainty to
the U.K.’s departure from the
European Union—the Brexit
process that has dogged the re-
gion with uncertainty for more
than three years.
Asian stocks rallied early
Friday. At midday in Tokyo,
Japan’s Nikkei 225 was up
2.4%, on pace for its best ses-
sion since February. Hong
Kong’s Hang Seng Index was
up 1.8% and the Shanghai Com-
posite was up 1.1%.
“The geopolitical risks
thought to be strangling world
economic growth, incredibly,
just in the last 24 hours, seem
to be closer to getting resolved
in a big, big way,” said Chris
Rupkey, chief financial econo-
mist at MUFG. “The outlook in
2020 looks better than it has
in months.”
The WSJ Dollar Index fell
0.4% to 89.99, the lowest since
July. Mansoor Mohi-uddin, se-
nior macro strategist at
NatWest Markets, said a U.S.-
China trade deal, Britain’s pos-
sible orderly exit from the EU
and looser monetary policy in
the U.S. and Europe together
set the stage for a selloff in the
dollar.
The pound is often seen as a
barometer for the U.K.’s politi-
cal fortunes and the effect the
U.K’s exit from the EU will have
on the economy. Mr. Johnson’s
Brexit plan is to take the U.K.
out of the EU by Jan. 31.
The EU-U.K. trading rela-
tionship will remain unchanged
at least through the end of
2020 under the plan as
Brussels and London hash out
a long-term agreement over
immigration, tariffs and finan-
cial flows.
Before the election, market
observers expected a Johnson
victory to boost the pound and
U.K. stocks.
ING Bank expects the pound
could hit $1.35 if there is a
Conservative majority. The
bank had expected the pound
would fall to $1.26 or $1.24 if
there is a hung Parliament or
Labour Party majority, respec-
tively. Citigroup predicted that
sterling would reach $1.40 in
2020, bolstered by a Conserva-
tive majority bringing certainty
to the market.
—Steven Russolillo
and Joanne Chu
contributed to this article.
Analysts
Disagree
On Yield
Continued from page B1
from corporate bonds to home
mortgages. The yield tends to
rise when investors feel opti-
mistic about growth and infla-
tion and fall when they are ner-
vous about the future.
In eight of the past 10
years, economists surveyed by
the Journal predicted the 10-
year yield would rise higher
than it did.
If you are an analyst at an
investment bank, “no one will
ever fault you for being an op-
timist,” said Peter Atwater, a
finance professor at The Col-
lege of William & Mary.
“Higher yields represent opti-
mism.”
While the range of forecasts
is broader than last year’s,
most economists are predict-
ing that the economy will con-
tinue to grow at a pace close
to this year’s expansion of
about 2% and that the Federal
Reserve will likely keep inter-
est rates steady after cutting
them three times this year.
Analysts remain divided
about how developments this
year will play out in 2020. The
potential for a limited trade
agreement between the U.S.
and China could ease tensions
that contributed to this year’s
global economic slowdown.
Stocks Rally as China Deal Nears
BY ALEXANDER OSIPOVICH
AND CAITLIN OSTROFF
Stocks climbed after Presi-
dent Trump said on Twitter
that the U.S. and China are
nearing a trade deal.
Major indexes jumped after
Mr. Trump tweeted, “Getting
VERY close to a BIG DEAL
with China.
THURSDAY’S They want it,
MARKETS and so do we!”
The Wall
Street Journal reported after
the market closed that Mr.
Trump is preparing to clinch a
limited agreement that would
roll back existing tariffs on
Chinese goods and cancel new
levies set to take effect Sun-
day, according to a person fa-
miliar with the matter.
The Dow Jones Industrial
Average rose 220.75 points, or
0.8%, to 28132.05. The S&P
500 gained 26.94 points, or
0.9%, to 3168.57, while the
Nasdaq Composite advanced
63.27 points, or 0.7%, to
8717.32.
Both the S&P and the Nas-
daq closed at records, while
the Dow ended the day within
0.1% of its previous closing
high, set last month.
The president’s comments
Casino and Chemical Shares Get Trade Boost
BY AKANE OTANI
Shares of companies sensi-
tive to U.S.-China trade policy
are rallying on hopes that the
two countries may be nearing
an agreement.
The S&P 500
ABREAST OF climbed 0.9%
THE MARKET Thursday after
President
Trump said a trade deal with
China was close, and The Wall
Street Journal reported U.S.
negotiators had offered to can-
cel fresh tariffs on Chinese
goods that were set to take
place Sunday.
A few categories of stocks
got an even bigger boost.
Wynn Resorts Ltd. and Las
Vegas Sands Corp. rose 9.5%
and 5%, respectively. The ca-
sino companies both operate
resorts in Macau, a semiauton-
omous region of China, mak-
ing them sensitive to Washing-
ton and Beijing’s trade rift.
Chemicals companies also
jumped. Shares of Dow Inc.,
which makes chemical prod-
ucts used in industries ranging
from agriculture to consumer
goods, added 2.5%. The com-
pany had cut its full-year
spending forecast over the
summer, citing the prolonged
U.S.-China trade fight.
Another group getting a
boost Thursday: industrial
stocks. One of the key snags in
the U.S. and China’s trade ne-
gotiations over the past few
months has been disagree-
ment over the level of farm
purchases China should make
from the U.S. A trade deal that
Yield on the 10-year Treasury note
Forecasts made in December 2018 and November 2019
4%
3 risk appetite among investors
2
Actual yield
1 mitigated slowing growth.
2019
Sources: WSJ Survey of Economists (predictions); Tullett Prebon (actual)
James Benedict/THE WALL STREET JOURNAL
Some are unsure whether the
Fed’s rate cuts did enough to
brace the economy for slower
global growth. And the U.S.
presidential election could lead
to changes in tax and spending
policies.
“The policy outcomes that
could come out of the 2020
election are historically diver-
gent—it’s probably about 40,
50 years since we’ve seen the
* * * *
MARKETS
came ahead of a Sunday dead-
line when a new round of tar-
iffs are set to go into effect on
roughly $156 billion of Chinese
goods.
The Journal reported that
U.S. negotiators offered to cut
existing tariff rates by as much
as 50% on $360 billion of Chi-
nese imports, citing people fa-
miliar with the matter. The ne-
gotiators also offered to cancel
the new tariffs set to take ef-
fect Dec. 15, those people said.
The tariffs, which threaten
to deepen China’s economic
problems and prompt retalia-
tory action, could weigh on
prices of cellphones, laptops
and apparel for American con-
sumers.
Investors sold government
bonds in favor of riskier assets
after Mr. Trump’s tweet. The
yield on the 10-year U.S. Trea-
sury note rose to 1.901%, from
1.786% on Wednesday. Bond
yields move in the opposite di-
rection from prices.
Gold futures fell 0.2% to
$1,466.70 a troy ounce and U.S.
crude-oil futures gained 0.7%
to $59.18 a barrel.
“We’re in a waiting pattern,
given the looming trade dead-
line,” said Jeffrey Kleintop,
chief global investment strate-
Shares of Las Vegas Sands, which owns the Parisian Macao casino resort, rose 5% Thursday on hopes for a U.S.-China trade deal.
clears the picture stands to
benefit farms and the compa-
nies that make equipment for
them.
Deere & Co., which manu-
factures equipment for farm-
ers and construction compa-
nies, rose 2.4%. Caterpillar
Inc. advanced 1.9%.
Darker dots indicate
multiple forecasts
Average forecast
’20 ’21 ’22
potential for such a wide range
of policy outcomes,” said Mike
Pyle, global chief investment
strategist at BlackRock Inc.
“That is a naturally uncertain
environment for investors.”
Trade has been an impor-
tant variable affecting inves-
tors’ predictions for bond
yields. Few economists thought
that the negotiations between
the U.S. and China would con-
Index performance
1.00%
0.75
0.50
0.25
0 Dow industrials
–0.25
9:30 noon
Source: FactSet
gist at Charles Schwab. “The
markets are keying off any in-
dication as to whether we’ll
get a deal, perhaps more than
they should.”
The Labor Department said
Thursday that the number of
Americans applying for first-
time unemployment benefits
jumped to the highest level in
more than two years.
The report contrasted with
other recent data showing a
Semiconductor firms,
whose profits rely in part on
demand from China, also out-
performed the broader mar-
ket. Shares of Nvidia Corp.
added 3.2%, while Micron
Technology Inc. rose 3.5%.
Thursday’s moves showed
how, more than a year into a
tinue to provide a source of
friction for this long.
“Most people—and I’m in-
cluding myself—thought we’d
see a trade deal by now,” said
Steven Blitz, chief U.S. econo-
mist at TS Lombard.
A surge in business and
consumer confidence stem-
ming from a preliminary trade
deal is likely to spur growth
next year, leading to improved
and reducing the demand for
the safety of government
bonds, Mr. Blitz said. He said
he is predicting the 10-year
yield will climb to about 2.5%.
Mr. Blitz said the important
thing for investors was to take
a first step and that the
“thornier aspects” of the trade
dispute, such as intellectual-
property rights, can be ad-
dressed in a subsequent deal.
“With plenty of fits and
starts and histrionics along
the way, you’re moving from
disorder to order,” he said.
Other economists aren’t as
convinced policy makers have
While job growth in recent
months has exceeded expecta-
tions, Lindsey Piegza, chief
economist at Stifel Financial, is
skeptical that the Fed’s three
rate cuts this year have done
enough to sustain the economy
into 2020.
She pointed to the slowing
pace of wage growth as a sign
of a slowdown. She is predict-
ing the 10-year Treasury yield
will fall to 1.55%.
“My biggest concern is pro-
longed anemic growth,” Ms.
Piegza said.
Friday, December 13, 2019 | B11
S&P 500
Nasdaq Composite
2 4
strong U.S. jobs market. Initial
jobless claims can be volatile,
and jitters over the report
were quickly dispelled by opti-
mism over trade.
Shares of Facebook fell
$5.51, or 2.7%, to $196.75 after
the Journal reported that the
Federal Trade Commission was
considering seeking a prelimi-
nary injunction against the so-
cial-media company over anti-
trust concerns.
trade fight between the U.S.
and China, traders remain sen-
sitive to indications that the
two sides could be getting
closer to a resolution.
Analysts believe the U.S.
economy remains on solid
footing heading into the new
year. But they warn that
Treasurys Take Their
Biggest Fall Since ’16
BY DANIEL KRUGER
Signs that the U.S. and China
were nearing a trade deal
sparked a surge in government
bond yields world-wide Thurs-
day, sending the yield on the
benchmark 10-year Treasury
note to its biggest one-day gain
in more than three
CREDIT years.
MARKETS The yield on the
benchmark 10-year
Treasury note soared to 1.901%
from 1.786% Wednesday—its
largest single-session climb
since the day after the 2016
U.S. presidential election, ac-
cording to Tradeweb. The yield
on the German 10-year govern-
ment bond rose to negative
U.S. Sets Debt Sales
The Treasury Department will
auction $111 billion in securities
next week. Details (all with mini-
mum denominations of $100):
 Monday: $42 billion in 13-
week bills, dated Dec. 19, 2019,
maturing March 19, 2020. Cusip
number: 912796TL3.
Also, $36 billion in 26-week
bills, dated Dec. 19, 2019, matur-
ing June 18, 2020. Cusip num-
ber: 912796SV2.
Noncompetitive tenders for
both issues must be received by
11 a.m. EST Monday and com-
petitive tenders, by 11:30 a.m.
Investors were also watch-
ing the U.K.’s general election,
as voters went to the polls to
determine whether Prime Min-
ister Boris Johnson will re-
main in office.
Politicians in both the ma-
jor political parties are signal-
ing an end to years of con-
strained fiscal policy as the
country prepares to exit from
the European Union, and the
vote results will play a role in
determining the course of
Brexit.
Although a parliamentary
majority for the Conservative
Party is seen as most likely,
recent polls have shown that
Mr. Johnson’s lead has nar-
rowed.
The pound surged against
the dollar after exit polls pro-
jected a Conservative majority,
making a Brexit deal more
likely. The FTSE 100 gained
0.8%, outpacing other Euro-
pean markets.
The European Central Bank
under its new president, Chris-
tine Lagarde, left interest rates
unchanged at minus 0.5%, a
day after the Federal Reserve
also held rates steady.
The benchmark Stoxx Eu-
rope 600 gained 0.3%. Asian
stocks rallied early Friday.
EDUARDO LEAL/BLOOMBERG NEWS
growth, which is already ex-
pected to slow in 2020, could
dim further if U.S.-China talks
collapse.
Multinational companies
have also cited uncertainty
around tariffs as a reason to
delay or pull back on plans to
expand overseas.
0.267% compared with negative
0.323% Wednesday.
Yields, which rise when
bond prices slip, climbed after
President Trump tweeted that
the U.S. and China were getting
very close to a trade deal.
The deal was said to be a
limited agreement, known as
“phase one,” that would fore-
stall new tariffs set to take ef-
fect Saturday and roll back ex-
isting tariffs, according to a
person familiar with the mat-
ter, The Wall Street Journal re-
ported Thursday.
Investors have frequently re-
treated to the safety of govern-
ment debt at times of trade
frictions between the world’s
two largest economies.
 Wednesday: $18 billion in
one-year, 10-month 0.30% float-
ing-rate notes, a reopening of an
issue dated Oct. 31, 2019, matur-
ing Oct. 31, 2021. Cusip number:
912828YN4. Noncompetitive ten-
ders must be received by 11 a.m.
Monday; competitive tenders, by
11:30 a.m.
 Thursday: $15 billion in
four-year, 10-month Treasury in-
flation-protected securities,
dated Dec. 31, 2019, maturing
Oct. 15, 2024. Cusip number:
912828YL8. Noncompetitive ten-
ders must be received by noon
Thursday; competitive tenders,
by 1 p.m.
 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.
B12 | Friday, December 13, 2019
PETER KOVALEV/TASS/ZUMA PRESS
An FDA plan to lower nicotine levels in all combustible cigarettes is just one headache the manufacturers face.
Cigarette Makers Can Stand the Heat
The companies have more ways to cope with tougher U.S. tobacco rules than they receive credit for
The threat of stricter tobacco
controls in the U.S. has wiped bil-
lions of dollars off the stock-market
valuations of big cigarette compa-
nies. But they have more ways to
cope with the fallout than investors
are giving them credit for.
The biggest debate among to-
bacco shareholders today is how
much new rules in the U.S. will hurt
companies such as Altria and Brit-
ish American Tobacco.
Tobacco regulation is likely to
change in three ways. First, the U.S.
Food and Drug Administration will
decide by 2021 which e-cigarette
brands can remain on the market
and under what terms. After years
of falling youth smoking rates,
sharp marketing practices have
hooked a new generation on nico-
tine: 28% of high-school students
now vape, according to the 2019
National Youth Tobacco Survey.
Second, the authorities want to
ban menthol cigarettes, which ac-
count for around 30% of U.S. sales,
The Real Chinese Debt Threat Is Surfacing Again
Chinese companies are defaulting
on bonds in record numbers. Should
investors be worried? Yes—but not
for the reasons you might think.
The default crisis in China is con-
centrated in the private sector,
which is suffering from the trade
war and, more important, a three-
year action against shadow banking
that has punished private borrow-
ers. Their default rate on bonds was
nearly 4% in the first 11 months of
2019, up from 0.8% in 2017, accord-
ing to Standard Chartered.
That has been matched by a
steep fall in profits. On a 12-month-
moving-average basis, nearly 18% of
private industrial enterprises were
losing money in October—the high-
est number since at least 2002 and
up from just 11% in 2017.
This is terrible news for China’s
entrepreneurs and Chinese
growth—but it matters less for
bond-market stability than it might
In her first policy meeting as
head of the European Central
Bank on Thursday, Christine
Lagarde delivered clear forward
guidance for bird-watchers.
“I’m neither dove nor hawk and
my ambition is to be this owl that
is often associated with a little bit
of wisdom,” said Ms. Lagarde.
For decades, “dove” has been
economic shorthand for central
bankers who support easier mon-
DEDDEDA/DESIGN PICS/ZUMA PRESS
etary policy to support employ-
ment, while “hawk” has referred
to those who prioritize fighting in-
flation. Ms. Lagarde’s predecessor
Mario Draghi was a dove, and in-
vestors are now eager to figure
out what kind of policy she
HEARD STREET
FINANCIAL ANALYSIS & COMMENTARY
based on Euromonitor data. Re-
search shows that as menthol eases
burning sensations in the throat, it
may help turn first-timers into reg-
ular smokers. Finally, since mid-
2017 the FDA has been working on
plans to lower nicotine levels in all
combustible cigarettes to make
Though shareholders
have braced for the worst,
companies have time to
prepare themselves.
them less addictive. While the tim-
ing isn’t clear, investors expect a
menthol ban before new nicotine
standards.
Cigarette companies that have
sizable businesses in the U.S.—Al-
tria, BAT and Imperial Brands—
will be directly hit. The three have
appear. That is because private-sec-
tor borrowers account for a tiny
percentage of corporate-bond debt,
and investors have long demanded
high yields to compensate for de-
fault risk. Close to 90% of corporate
bonds outstanding are from state-
owned enterprises, whose default
rate Standard Chartered pegged at
just 0.04% for the first 11 months of
the year.
The real threat to the bond mar-
ket is that this latter number could
start rising. Tewoo Group, a com-
modity trader owned by the Tianjin
city government, on Thursday an-
nounced the results of an offshore
debt restructuring, with a majority
of investors accepting heavy losses,
according to Bloomberg. This is the
first offshore default and restruc-
turing by a Chinese SOE in more
than 20 years, S&P notes.
After improvement in 2017 and
2018, returns at state-controlled in-
OVERHEARD
will favor.
Some central bankers are more
comfortable with the ornithological
association than others.
“I don’t think I view
one as cooler than the
other—they manifest
different elements of
bird life,” Frederic
Mishkin, a Federal
Reserve Board mem-
ber until 2008, once
said. At the other
end of the spec-
trum, a former
Bank of Eng-
land rate-setter
privately
wished he
ON
THE
lost a combined $110 billion from
their stock-market valuations since
the summer of 2017. BAT, which
generates over half of its U.S. reve-
nue from menthol brands such as
Newport, is particularly exposed.
Altria sells fewer menthol smokes
but owns a 35% stake in e-cigarette
maker Juul Labs, which, as the
brand of choice for high-school stu-
dents, is likely to be sharply cur-
tailed by new vaping rules. And all
three players would be affected by
lower nicotine levels.
Though shareholders have braced
for the worst, companies have time
to prepare. With the FDA focused
on the immediate vaping crisis for
the next 18 months, a menthol ban
and nicotine limits could be de-
layed. Manufacturers will use the
breathing space to make their
heated tobacco and vaping products
more appealing to menthol smokers
in the event of a ban.
While some former menthol
smokers may quit, others will likely
dustrial firms have begun nosing
down in recent months as the prop-
erty and construction markets cool.
The trailing 12-month return on as-
sets was just 3.7% in October.
One of the lessons from China’s
corporate-bond blowup in 2015 and
2016 is that it doesn’t take much
trouble in the state sector to make
for big bond-market ructions. The
SOE default rate only ticked up to
0.15% in 2016, but that was enough
to reprice the whole market and
make it nearly impossible for lower-
rated companies to issue bonds in
early 2016.
Yet there is a silver lining for in-
vestors: The need to avoid a repeat
of the 2016 fiasco is one reason to
think that—despite policy makers’
reluctance to push down rates and
some signs of improvement in sec-
tors such as electronics—Chinese fi-
nancial conditions will get easier
next year. —Nathaniel Taplin
could have been dubbed an os-
trich instead.
Rather than revealing her
feathers now, Ms.
Lagarde seems to
prefer to mend
some bridges
within an increasingly
divided ECB. “Each
and every president
has their own style
of communicating,
and I know you are
eager to compare,”
she told reporters.
“[But] don’t over in-
terpret, don’t sec-
ond-guess, don’t
cross-reference.”
Share of U.S. cigarette
market by volume
100%
Flavor
capsule
90
80
Menthol
70
60
50
40
Standard
30 cigarettes
20
10
0 part of the networking market that
2013 ’14 ’15 ’16 ’17 ’18 ’19
Source: Euromonitor International
switch to nonmenthol cigarettes,
buy from the black market or use
smokeless products such as e-ciga-
rettes. That means BAT could prob-
ably claw back about half the £3.8
billion ($5.01 billion) in revenue it
currently makes from Newport
menthol cigarettes, according to an-
alysts at brokerage Liberum.
Lower nicotine levels would have
a more severe impact on the indus-
try. But they also would be a
tougher sell politically: Tobacco
farmers would have to change their
production and curing practices to
reduce the nicotine content of their
crops. And, as with menthol, some
consumers would turn to illegal
sellers for their fix.
As a multiple of projected earn-
ings, Altria and BAT shares are
trading around 30% below their 10-
year averages. Changes to U.S. ciga-
rette regulations aren’t good news
for the sector, but investors risk ig-
noring what big tobacco can do to
reduce the harm. —Carol Ryan
Nestlé Sets Up a Sweeter
Ice-Cream Deal for Later
Nestlé’s latest deal should help
it milk the softening ice-cream
business for private-equity-style
returns, perhaps ahead of a poten-
tial initial public offering in a few
years’ time.
The world’s largest food com-
pany said late Wednesday that it is
selling U.S. brands including Häa-
gen-Dazs and Drumstick to Fron-
eri, a joint venture it created in
2016 with private-equity company
PAI Partners to manage its Euro-
pean ice-cream assets.
The U.S. business, which logged
sales of $1.8 billion in 2018, is go-
ing for $4 billion. The price equates
to roughly 15 times earnings before
interest, taxes, depreciation and
amortization, according to people
close to the deal. That is low for
Nestlé, which got 20 times for the
U.S. candy brands it sold to Italian
confectioner Ferrero early last year.
Still, it is a smart move. Frozen-
food assets can be hard to sell as
they need an expensive chilled logis-
tics network. Froneri owns around
one million freezers globally, includ-
ing the ones that consumers see in
convenience stores. While that keeps
barriers to entry high, it can also
limit the number of bidders when
frozen-food assets are on the block.
Add the fact that the U.S. ice-
cream market is growing sales at a
relatively sluggish 3% annually,
and the Nestlé brands were never
going to command a huge price.
But by keeping its 50% stake in a
now larger partnership, Nestlé can
let Froneri do the legwork of get-
ting more value out of the busi-
ness while it focuses on its strate-
gic product categories, which
include coffee and pet food.
Froneri has already increased
the Ebitda margins of existing
brands in the Nestlé partnership
THE WALL STREET JOURNAL.
Cisco
Puts Its
Chips in a
New Game
Move could enable it to
crack a valuable market
Cisco Systems is finally thinking
outside the box—its own, to be
exact.
The network-equipment giant an-
nounced a new chip architecture
called Cisco Silicon One. Cisco has
long designed its own networking
chips, but those have typically only
been available if one bought its
equipment. The company said
Wednesday that its latest offerings
will be available through “disaggre-
gated business models”—meaning
customers can choose to buy just
the chips themselves.
That is a notable move that
could allow Cisco to crack a key
has eluded it to date. Companies
such as Amazon, Microsoft, Google
and Facebook spend billions every
year on their own networks. But
they also prefer to buy chips di-
rectly and design their own gear
tailor-made for their needs.
That has meant little opportunity
for Cisco in a large and growing
market. The four aforementioned
companies alone had about $83.4
billion in capital expenditures and
capital leases for the 12-month pe-
riod ended in September, up 18%
from the same period a year earlier.
That contrasts sharply with
other areas of the corporate tech-
nology market. A CIO survey by
Morgan Stanley in October esti-
mated that overall spending on In-
formation-technology hardware will
grow just 1.2% in 2020. Cisco’s own
fiscal first-quarter results last
month confirmed a “broad-based
slowdown” expected to linger at
least into the early part of next
year. Analysts expect Cisco’s reve-
nue to decline by 2% for the fiscal
year ending in July.
It is too early to tell if Cisco’s
new unboxed approach will change
that. The company will be compet-
ing with other merchant silicon
providers such as Broadcom. Mi-
crosoft and Facebook have signed
on as early customers. How much
those companies will buy remains
to be seen. But, in the cloud market
at least, Cisco has nowhere to go
but up. —Dan Gallagher
Nestlé sales growth by product, 2018
Nutrition and
health science
4.6%
Pet care 4.5
Powdered
3.3
drinks
Confectionery 2.7
Water 2.3
Milk products
1.8
and ice cream
Prepared
dishes
1.2
Source: the company
to around 20%. If it can do the
same for the U.S. brands, which
are currently 5 percentage points
lower, the Swiss company will
share in any upside. Froneri’s lat-
est purchase is funded with lash-
ings of debt, bringing borrowings
close to six times Ebitda.
The question is whether and how
Nestlé will cash out of ice-cream al-
together. Froneri has done a num-
ber of deals over the past six years,
advised by Rothschild. It is now the
second-largest ice-cream player
globally after Unilever, which owns
Ben & Jerry’s and Magnum.
After buying Häagen-Dazs,
Froneri will have close to $5 bil-
lion in annual sales. That could
make it too big a mouthful for an-
other private-equity or consumer
company. An IPO in the U.S. or Eu-
rope in a couple of years is proba-
bly more realistic.
All going well, Nestlé’s latest
sale has lined it up for a creamier
valuation later.
—Carol Ryan
 MANSION
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his homes varies mother. M12
greatly. M2

HOMES | MARKETS | PEOPLE | REDOS | SALES THE WALL STREET JOURNAL. Friday, December 13, 2019 | M1

Good Things 1,300 SQUARE FEET

In Small Packages
Jewel-box homes may be modest in size, but when it comes
to their interiors, they are anything but understated NEW
A wraparound
mahogany deck
and cedar-
shingle siding
PURCHASED IN 2014 FOR

$576,000
MAKEOVER

$265,000

EMILY ASSIRAN FOR THE WALL STREET JOURNAL (4); ISTOCK (2, HOUSE ILLUSTRATION; BOX)
White
Macaubas
quartzite counters,
Ann Sacks tile,
Gaggenau
appliances

Hunter Frick and his partner, Gabriel Fernandez, with their dog Huey, below right. Their 1970s ranch house in East Hampton, N.Y., top, originally was a kit home that was gut-renovated.

BY AMY GAMERMAN struction luxury homes at 3,000

A
square feet or less has increased
miniature dachshund nearly 20% since 2013—with a corre-
named Huey played a big sponding decline in
part in Hunter Frick’s de- larger-size, high-
cision to buy a 1,300- price homes.
square-foot, 1970s ranch Changing de-
house in East Hampton, N.Y., instead Fireplace mographics
of one of the many large newer homes surround of might be
he looked at. So did a fear of too ocean-gray marble driving the
many weekend guests. with a subtle trend. More
“Huey can’t do stairs,” said Mr. wave pattern than half of
Frick, 37, a senior vice president of all households
development marketing for Halstead now consist of
real estate who splits his time be- single people or
tween the Hamptons and New York couples, U.S. Census
City. “And anything over four people Bureau data shows—
and you’re taking multiple cars to go with traditional nu-
to the beach, or hiring a chef to cook.” clear families ac-
So after buying the three-bedroom counting for just 20%.
house for $576,000 in 2014, Mr. Frick “Empty-nesters want to downsize,
gave it a $265,000 makeover, putting in a new on a fourth, or 10th, bedroom,” he said. but they want luxury homes not starter homes—
kitchen with quartzite counters and Gaggenau ap- The jewel-box home—small, but loaded with luxury kitchens, marble surfaces, all the latest and
pliances, a marble bar and a mahogany deck with amenities and costly finishes—is luring more home greatest,” said Tim Costello, CEO of Builder Home-
an outdoor entertainment system. buyers. An analysis by Home Innovation Research site, a consortium whose New Home Source web-
“The small footprint allowed us to spend extra Labs, a subsidiary of the National Association of site—an online clearing house for new-construction
on details that would otherwise have been spent Home Builders, found that the number of new-con- Please turn to page M4

This Home Is
A Work of Art
Jonathan Prince turned a sprawling former dairy
barn into a luxurious estate and workspace that
showcases his enormous sculptures
TONY LUONG FOR THE WALL STREET JOURNAL (2)

SOUTHFIELD,
MASS.

$1.2
MILLION
Purchased in
2005

Sculptor Jonathan Prince, left, on his bluestone sidewalk leading to the former dairy barn, above, that he
bought and renovated over two years.

BY NANCY KEATES
FROM ONE ANGLE, Jonathan Prince’s white,
circa-1900 farmhouse, reached through an
arch of maple trees, blends perfectly into ru-
ral Berkshire County’s winding roads, stone
walls, barns and summer camps.
But get closer, and it is clear something is
unusual: The neatly trimmed yard, irrigated
to stay emerald green, is mowed in different
directions, creating a sense of movement. A
long path to the kitchen door has pieces of
bluestone jutting off to the side at different
lengths, leaving dark lines that look like
shadows in the grass. And the pristine rect-
angular swimming pool is a preternatural
deep blue, flickering with light reflecting off
what appear to be pebbles.
The intended effect is “numinous,“ or
mystical, says Mr. Prince, a 67-year-old
sculptor, whose latest work, a series called
“Shatter,” currently displayed at Christie’s
Sculpture Garden in New York, consists of
Please turn to page M7
 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.
M2 | Friday, December 13, 2019
The Wright Stuff
Homes designed by Frank Lloyd Wright still create a stir when they come on the market
BY ADRIENNE GAFFNEY
W
hen Kim Bixler was 8,
her family moved into
a Rochester, N.Y.,
home built in 1908 by
the architect Frank
Lloyd Wright. They acquired the prop-
erty in an unusual deal: The couple
swapped their home for the Wright
house after seeing it on a tour.
The agreement, negotiated over a
dinner, ultimately put a value of about
$110,000 on the home, which Ms. Bixler
describes as Prairie-style, with an open
floor plan, low-pitched roof and promi-
nent eaves.
“It was constant repairs every single
day, and we both have full-time jobs,”
Ms. Bixler recalled the owners explain-
ing some 42 years ago about why they
wanted to move out after two-plus
years.
For Ms. Bixler, living in the four-bed-
room, 5,540-square-foot home inspired
a love of design and instilled in her a
lasting reverence for Wright’s work.
“The experience was fascinating,”
said Ms. Bixler, who wrote of her years
in the home in “Growing Up in a Frank
Lloyd Wright House,” published in 2012.
“My parents didn’t have a lot of money,
so we basically held the house together
with love and Band-Aids.”
She said her mother, Karen Brown,
was an admirer of the architect, and
pushed her to give house tours. “She
had all the little note cards that she
would give to me,” she said, “standing
in front of these architecture professors
and architects and community groups,
giving this tour as this 8-year-old.”
Wright designed more than 1,100
buildings from the late 1800s until his
death in 1959; 532 of them were built.
Some 60 years after his final home was
completed, it is still news when a
Wright home comes on the market.
A record for the sale of a Wright-de-
signed home was reached in October,
when his Ennis House, a 1924 Mayan
MINNEAPOLIS // $2.75 MILLION
The Henry Neils House, built in 1951, was the first home by Wright to feature marble walls.
3 bedrooms, 3 bathrooms, 2,511 square feet
THE WALL STREET JOURNAL.
MANSION
PHOENIX // $9.99 MILLION
The design of this house, built in 1952,
is seen as a precursor to Wright’s work on the
Guggenheim Museum in New York.
4 bedrooms, 3.5 bathrooms, 2,553 square feet
BOB HASSETT; ROBERT PHILLIPS/EVERETT COLLECTION (WRIGHT)
COMPARISON SHOPPING
BERNARDSVILLE, N.J. // $1.495 MILLION.
Revival in Los Angeles seen in the film
“Blade Runner,” was sold by supermar-
ket billionaire Ron Burkle for $18 mil-
lion.
Among the Wright homes currently
on the market is one in Phoenix. Wright
built the home in 1952, adding a guest-
house in 1954. It was designed for
Wright’s son and daughter-in-law, David
and Gladys Wright, and has a similar
silhouette to his Guggenheim Museum
in New York City.
John Waters, the preservations pro-
grams manager at the Frank Lloyd
Wright Building Conservancy, said he
has seen much interest lately in
Wright’s Usonian homes: small, typically
single-story houses he built beginning in
the 1930s to cater to middle-class fami-
lies. (Wright coined the word for his vi-
sion of the American landscape.)
Mr. Waters attributed the renewed
The 1940 Christie House, set on more than 7 acres, was one of four homes built in New Jersey. interest to the current focus on all
3 bedrooms, 3.5 bathrooms, 2,700 square feet things Midcentury Modern. But he
added that it is impossible to generalize
about how well Wright homes sell.
BUNKER HILL VILLAGE, TEXAS // $2.85 MILLION “Each has its own story,” he said. “The
experts from the conservancy’s real-es-
tate committee emphasize that any
home that is not specifically what the
market is looking for at a given time
may take longer to sell.”
He offered as examples a Wright
home in Manchester, N.H., that sold
above its asking price in two months.
Another in Illinois has been on the mar-
ket since 2017, he added, even while one
nearby sold in less than three months.
Ms. Bixler’s family kept their home
for nearly 20 years. They moved into
the house in 1977, when her father, Burt
Brown, began working at Xerox, and
owned it until 1994, when they sold it
for $425,000. The home most recently
sold for $830,000 in 2009, according to
Realtor.com.
She recalled just one drawback to life
CLOCKWISE FROM TOP: WEICHERT REALTORS; TK IMAGES HOUSTON, TX; SPACECRAFTING PHOTOGRAPHY; PAMELA TILTON LINN/COMPASS
in a Wright house: “Unfortunately, we
did have people who peeked in the win-
The William Thaxton House, the only Wright home in Houston, was completed in 1955. dows, but my mom was pretty relaxed
Expanded from the original to 6 bedrooms, 6.5 bathrooms, 8,072 square feet about it.”
CHICAGO // $2.2 MILLION
The 1897 Heller House is geometric in style. The architect added an elevator in 1909.
7 bedrooms, 3 bathrooms, 2 half-bathrooms, 6,100 square feet
 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.

THE WALL STREET JOURNAL. NY Friday, December 13, 2019 | M3

PRIVATE PROPERTIES

Armani Buys Unit Next Door ON WSJ.COM

Vote for the

House of the Year
House of the Week winners
face off in a final reader poll

O
ur annual poll names one home the WSJ House of
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John Legere, the departing chief
executive of T-Mobile US, has sold his
Manhattan penthouse to his
million. Fourteen
months later he took
the property off the
market and it was
It has been widely reported that the not publicly listed at the time of the
apartment was at one time the home sale.
of publishing giant William Mr. Armani is already a resident of

HALL AND HALL

neighbor, fashion titan Gior- SOLD Randolph Hearst and his mis- the building. His similarly sized

$17.5
gio Armani, for roughly $17.5 tress Marion Davies, though apartment shares a floor with the
million, according to people that connection could not be one owned by Mr. Legere. This pur-
familiar with the deal. chase will allow him to take over the
Located at 91 Central Park MILLION independently verified. Mr.
Legere’s architect Lee Mindel entire floor. Timber! A Montana Wilderness Home
West, the more than 3,000- 3,000 sq. feet, previously said he found Ms. A spokesman for Mr. Armani de- Condon, MT
square-foot, four-bedroom four bedrooms, Davies’s initials carved into a clined to comment. Mr. Legere did
apartment was designed with stained glass fireplace in the apartment as not respond. The timber-frame house features a 28-foot-high great room
a distinctive church-like look. windows, well as a portrait of a woman Mr. Legere, who has been CEO with exposed beams. There are four bedrooms and three-
There is intricate woodwork, Elizabethan oak that appeared to be Ms. Da- since 2012, will be stepping down and-a-half bathrooms over 4,347 square feet.
stained glass windows, a fireplace vies in the stained glass. from his role at the telecom company
carved Elizabethan oak fire- Mr. Legere bought the this spring, it was announced last  Pick your favorite at WSJ.com/RealEstate
place and a handcrafted wooden bar. It apartment in 2015 for $18 million, he month. He will be succeeded by chief
also has 1,700 square feet of terrace told The Wall Street Journal when he operating officer Mike Sievert.
space overlooking Central Park. listed it in February 2018 for $22 —Katherine Clarke

Julian Schnabel
Family’s Fanciful
NYC Townhouse
A Greenwich Village and a library that
townhouse once home to could be converted
artist Julian Schnabel and into additional bed-
his first wife, art collector rooms, he said.
Jacqueline Schnabel, The home
is coming on the has expan-
market for $18.5 sive bright
million. entertain-
The property ing spaces
has been in the including 3100 SAVANNAH PLACE
Schnabel family three formal din- also has a large rear garden. Warhol, but many of the
FROM TOP: YALE WAGNER; KURT KRIEGER/CORBIS/GETTY IMAGES; HAAS COLBY

since the 1990s, ing rooms, one of Listing images show off pieces were removed from 6 BEDROOMS 8 FULL AND 2 HALF BATHS $5,500,000
and is still owned which opens out the family’s colorful style. the property so that it
by Ms. Schnabel, re- onto a terrace with In one of the din- could be tempo- An expansive auto court shaded by a canopy of majestic oaks sets
the tone for this remarkable Country Estate. Designed to entertain
cords show. views to the south and ing rooms, there is FOR SALE rarily rented, Mr.
and hold host to large family gatherings, the home’s elegant entry

$18.5
The five-story Italianate west. There are four ter- green wallpaper, Bolla said.
foyer features a grand custom staircase leading to the second-floor
townhouse is about 6,600 races, including two on an baby pink patent Jacqueline and formal living areas.
square feet, with an addi- upper level not visible from leather chairs and Julian Schnabel
tional roughly 1,000 square the street. The property a Chinese-style MILLION have three chil-
feet of usable lantern. 6,600 sq. ft., dren together:
space on the Mr. Schnabel de- art studio Lola Montes
basement level, signed various as- Schnabel, a
according to the pects of the house, includ- painter and filmmaker, ac-
listing agent, Mi- ing an elaborate fireplace tress Stella Schnabel and
chael Bolla of and a dining room table. gallerist Vito Schnabel.
Sotheby’s Inter- The property was previ- —Katherine Clarke
national Realty. ously dotted with the
There are four Schnabels’ large art collec- Lachlan Murdoch pays
bedrooms plus tion, which included pieces $150 million in L.A. M10
an art studio by Cy Twombly and Andy
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M4 | Friday, December 13, 2019 THE WALL STREET JOURNAL.

MANSION
Purchased in 2013 for
2,400 SQUARE FEET
$495,000
Remodeled in 2013 for

$280,000

ALEXIA FODERE FOR THE WALL STREET JOURNAL (6)

Jewel-Box Hand-
blocked
wallpaper;
Homes Hide vintage 1960s
flip-top desk.

Gems Inside
Continued from page M1
homes—tracks home buyers’ pref-
erences.
At the opposite end of the age Hand-blown
spectrum, many younger home glass fixture by
buyers don’t want to deal with Lindsey Adelman
the cost and headaches of main- $20,790
taining a large house. 
“The rule of thumb is that it
takes 10 to 15 people to maintain a
house in the Hamptons—our goal Jennifer Bunsa, an interior
was to halve that,” said Mr. Frick, designer, lives with her husband,
who shares his East Hampton Bryan Whitefield, and 5-year-old
house with his partner, Gabriel Fer- son in a 1948 house in Miami that
nandez, 36, director of global brand was once her childhood home. She
design at American Express. bought it from her father and did
But the home’s modest size was an extensive renovation.
a challenge when it came to find-
ing a contractor willing to take on Inside the house, custom mill- year-old son, Jack, in the 1948
the gut-remodel. “Most contrac- work and natural stone were used Midcentury Modern house in Mi-
tors in the Hamptons are focused to create “little areas of delight,” ami that was once her childhood
on building multistory, ground-up said Penelope Kim, Mr. Frick’s de- home.
houses that are 5,000-plus square signer. The home’s two small bath- Ms. Bunsa, 40, bought the 2,400-
feet,” Mr. Frick said. He kept the rooms—once a riot of pink and square-foot house from her father
basic footprint of the house—orig- green tile—are now finished in in 2013 for $495,000, and began
inally an inexpensive kit home— travertine, limestone and arabes- renovating it in stages. She has
but added a large wraparound cato marble tile. A closet was con- spent over $280,000 to date.
deck, which provides an addi- Vintage verted into a bar with a dramatic Apart from its emotional pull,
tional 800 square feet of living Moroccan rug; slab of wavy green-veined marble. the house fit the family’s lifestyle:
space and a place for guests to hurricane-impact “The doors open and it becomes a Trading up to a bigger house would
gather. windows; pendant showpiece,” Mr. Frick said. have meant moving away from Mi-
A separate deck off the master glass fixtures on Jennifer Bunsa, an interior de- ami’s urban center to the suburbs.
bedroom suite has an oversize brass chains signer, lives with her husband, “I think it’s the perfect layout.
mahogany-wall spa shower, Bryan Whitefield, 44, a project It’s just the right amount of
screened by a bamboo hedge. manager for construction, and 5- space, so we can be together as a

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THE WALL STREET JOURNAL. NY Friday, December 13, 2019 | M5

MANSION

TIPS ON DECORATING YOUR JEWEL BOX

High windows
and travertine
1. A sprawling sectional sofa 4. Use custom millwork to
floors
can make a small living room create built-in storage areas
throughout
feel cramped. Pick furnishings for pantries and washer-dryers,
that fit the space without for a less cluttered look.
dominating it. “A lot of big-box
retailers sell furniture that’s 5. Keep it light. Add layers of
just too big,” Ms. Bunsa said. ambient lighting, such as tiny,
dimmer-controlled downlights
2. To enhance a sense of spa- in ceilings, “so the home can
ciousness, give low ceilings a maintain a light feeling in all
glossy paint finish. “It increases four seasons,” Ms. Kim said.
reflectivity and draws the eye “And keep the color palette
up,” says designer Penelope Kim. simple and neutral, so that
Ms. Bunsa recommends hanging spaces flow into one another.”
Sharon and Michael Daggett built a home in the country-club window treatments at, or close
community of Cimarron Hills in Georgetown, Texas. to, the ceiling—even if the win- 6. But don’t be afraid of color.
dows don’t reach. “It makes the Splashes of color, used judi-
ceiling seem higher,” she said. ciously, add depth. “Use a
bright color or patterned wall-
2,224 SQUARE FEET 3. Splurge on natural stone paper in the background to
such as quartzite or marble for grab attention and extend view
counters and backsplashes, to through the space,” Ms. Bunsa
add impact to smaller kitchens said.
and bathrooms. —Amy Gamerman

ing from $460,000 to $825,000. nishings.

There are 30 sites still available. Most of the interior living
“Now that the kids are gone, space is concentrated in its cen-
AMY MIKLER FOR THE WALL STREET JOUNRAL (3)

family but also split off and do
our own thing,” Ms. Bunsa said.
The house hadn’t been updated
in decades. Ms. Bunsa tore out the
pocket doors that closed off the
kitchen, replacing aging melamine
with custom walnut cabinetry, and
putting in a ceiling-high slab of
Calacatta gold marble for a back-
splash.
She relocated the hallway that
connected the master bedroom to
the living room from the center of
the rooms to one side, creating
space for a media wall.
An open-air sunroom, called a
Florida room, was enclosed with
hurricane-impact windows. “So
now it functions as my office and
a playroom,” Ms. Bunsa said. One
of the room’s original, 1940s jal-
ousie windows has been repur-
posed as part of a dividing wall
for the adjacent guest room.
The home’s limited square foot-
age meant Ms. Bunsa could
splurge on materials such as
handmade Moroccan tile for the
foyer and hand-blocked wallpaper
for the kitchen and Florida room.
The handblown glass chandelier
in the dining room—Knotty Bub-
bles by Lindsey Adelman—has a
list price of $20,790.
Purchased for over
$800,000
Furnished for
$100,000
“It’s such a central element—it’s
not a precious item in a room you
never go in,” she said.
New-construction homes that
fit the jewel-box profile can be
hard to find, although more build-
ers are beginning to offer them.
The Fairways section of Cimar-
ron Hills, a private country-club
community in Georgetown, Texas,
outside Austin, features new luxury
homes that range from 2,034 to
2,564 square feet.
Sitterle Homes, a Texas-based
home builder, has sold about 40 of
these garden homes in Cimarron in
the past five years, for prices rang-
they are looking to right-size,” tral great room, with just two
Brian Shields, a partner with Sit- bedrooms. A separate 340-square-
terle Homes and president of its foot casita with a third bedroom
Austin division, said about his is set across an interior courtyard
customers. “They still want high from the main house.
design and nicer appointments
and finishes.”
“It’s perfect for us. The casita is
totally a guesthouse,” said Ms.
Sharon Daggett, who owns Daggett, who also uses it as a
homes in Phoenix and Horseshoe home office. “That really did ap-
Bay, Texas, had been house-hunt-
ing in Georgetown, where her
peal to me, because we have com-
pany that comes all the time.”
family has deep roots. But most of The great room opens onto two
the properties were huge, estate- outdoor entertainment areas that
size homes 3,000 square feet and add an additional 800 square feet
more, said Ms. Daggett, who is in of space: an open courtyard with a
her 60s. wood-burning fireplace, and a spa-
She found out about the garden cious covered patio with a pool and
homes by chance when she was large hot tub.
seated next to Mr. Shields’ wife on The patio, which overlooks the
a flight to Austin. pool and golf course, has a fire
“I said, ‘I would love to see pit, a seating area and an outdoor
what you are doing with smaller kitchen. Thanks to the mild cli-
homes,’ ” Ms. Daggett recalled. mate, the Daggetts can use the
She and her husband, Michael outdoor spaces for eight or nine
Daggett, a retired certified public months out of the year.
accountant, built a 2,224-square- The couple, who like to throw
foot home in 2018 that overlooked parties, also converted a living
the fairway’s 17th green, at a cost room closet into a cocktail bar.
of more than $800,000. They “We didn’t cut corners on any-
spent about $100,000 on new fur- thing,” Ms. Daggett said.

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THE SALES OF UNITS IN THE CONDOMINIUM. THE INFORMATION PROVIDED, INCLUDING PRICING, IS SOLELY FOR INFORMATIONAL PURPOSES, AND IS SUBJECT TO CHANGE WITHOUT NOTICE. IMAGE IS ARTIST’S
CONCEPTUAL RENDERING. FOR NEW YORK PURCHASERS ONLY, THE CPS-12 APPLICATION FOR THE CONDOMINIUM HAS BEEN FILED WITH THE STATE OF NEW YORK, DEPARTMENT OF LAW (FILE NO. CP18-0136).
WARNING: THE CALIFORNIA DEPARTMENT OF REAL ESTATE HAS NOT INSPECTED, EXAMINED, OR QUALIFIED THIS OFFERING. THIS ADVERTISEMENT IS A SOLICITATION FOR THE SALE OF UNITS IN ALINA
BOCA RATON: N.J. REG. NO. 19-04-0004. THIS COMMUNITY HAS BEEN REGISTERED WITH THE MASSACHUSETTS BOARD OF REGISTRATION OF REAL ESTATE BROKERS AND SALESMEN F-1266-01-01
 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.

M6 | Friday, December 13, 2019 THE WALL STREET JOURNAL.

MANSION

Firefighters battling a house fire during the Kincade Fire in Sonoma County, Calif., in October.

COUNTING HOUSE | BETH DECARBO

Getting Insurance in a Hot Zone

Some insurers aren’t renewing homeowners’ policies in high-risk areas. Here’s what to know if it happens to you.

As if living After a scramble, his agent was

through a string of
deadly wildfires
weren’t bad
enough, some Cali-
fornia home-
owners were fur-
ther burned when their insurers
wouldn’t renew their fire-insur-
ance policies. In response, Califor-
nia last week announced a one-
year moratorium forbidding
insurers from dropping customers
who live in or adjacent to ZIP
Codes affected by recent wildfires.
While the measure offers some
temporary relief, it might not help
homeowners seeking a new policy
for fire coverage. There are also
fears that insurers will ask the
state’s Department of Insurance
for across-the-board rate in-
creases—or stop doing business in
the state altogether to avoid fur-
ther losses.
“The problem with that is that
carriers are not nonprofits. If you
strip away their ability to under-
write, they can’t afford to do busi-
ness,” says Karl Susman, a Los
Angeles-based insurance broker.
Over the past four years, insur-
ers have declined to renew the
policies of 350,000 California
homeowners who live in areas at
high risk for wildfires, according
to the California Department of
Insurance.
The problem isn’t limited to
California. Homeowners on the
East Coast and the Caribbean are
losing coverage as well. In Flor-
ida, tens of thousands of home-
owners have been dropped by
their insurers in recent years be-
cause of the high risk of hurricane
and water-related damage. Even
homeowners unaffected by fire or
hurricanes can receive notice that
their policies won’t be renewed,
with companies citing repeated
claims and other risk factors.
After learning they have been
dropped, homeowners basically
have three options, but each one
has its drawbacks.
First, if you receive a letter say-
ing that your policy won’t be re-
newed, talk to your insurance
agent, or call the company di-
rectly, and state your case for re-
versing the decision. (California
has asked insurers to voluntarily
stop dropping customers statewide
because of fire risk.) The larger in-
surers typically rely on risk-model-
ing algorithms to determine areas
prone to disaster, says Amy Bach,
executive director of United Poli-
cyholders, a national consumer-ad-
vocacy group. The models typically
use satellite data, so the margins
around supposed high-risk zones
are imperfect. As a result, some
homeowners are dropped even if
their property is relatively safe.
Even if a home is located in a
verified danger zone, adding di-
saster-resistant features could
make your home more insurable,
according to the Insurance Infor-
mation Institute. For example, re-
moving plantings and trees near
the house and replacing siding
with a noncombustible material,
such as stucco or fiber cement,
can mitigate the damage of wild-
fire. Many neighborhoods are
forming Fire Safe Councils that
undertake wildfire preparedness
FINDING COVERAGE IN HIGH-RISK AREAS
• If your insurer didn’t give
ample notice, which varies
widely by state, before declin-
ing to renew your policy, con-
tact your state’s insurance
commissioner. The United Poli-
cyholders website has a state-
by-state list of insurance com-
missioners and resources.
• Shop for a policy that will
adequately cover a total loss of
your home due to fire, including
building code upgrades. Then, if
you can afford it, add supple-
mental coverage for things like
flood and earthquake protection.
• Since many states’ FAIR
plans typically offer limited cov-
erage, homeowners with those
policies should also purchase
“difference in conditions” poli-
cies to cover things like theft,
water damage and liability.
• Policies should cover the
measures throughout the commu-
nity. One insurer offers discounts
to homeowners in cities with a
“Firewise” certificate from the
National Fire Prevention Associa-
tion. In hurricane-prone areas, se-
curing the roof and installing
wind-resistant doors and window
shutters can minimize wind and
water damage. Still, these mea-
sures might not be enough for in-
surers to reverse a nonrenewal
decision, Ms. Bach notes.
The second option is to shop for
comprehensive coverage from a
different insurer. Just be prepared
to pay higher premiums. An inde-
pendent insurance agent—one who
offers policies from a number of
insurers—will know which compa-
nies offer coverage in your area.
When standard coverage from a
major insurer isn’t available be-
cost of replacing personal
items (replacement cost value)
instead of what those items
are worth after depreciation
(actual cash value).
• Understand that a policy
might have a fixed-dollar de-
ductible for some issues, such
as theft, and a percentage de-
ductible for others, such as
damage caused by a hurricane.
In Florida, for example, the per-
centage deductible typically
ranges from 2% to 5% of the to-
tal insured value. (So a home-
owner with a 5% deductible on
a $1 million policy would have
to pay $50,000 out of pocket
before the insurer would pay.)
• To check the financial stabil-
ity of a non-admitted insurer, ask
your agent to check the in-
surer’s rating on the A.M. Best
or Demotech websites.
cause of risks in your area, many
homeowners turn to a “non-ad-
mitted” insurance company, so
called because they aren’t li-
censed by the state’s department
of insurance. As a result, they are
less regulated than “admitted”
companies, and homeowners
aren’t protected if the company
becomes insolvent.
In Berkeley, Calif., homeowner
Nigel Guest received nonrenewal
notices twice—each from a differ-
ent insurance company. Mr. Guest,
71, a retired environmental con-
sultant, owns a roughly 2,500-
square-foot, hillside home that
was recently appraised at $1.85
million. Last year, he got a letter
from his longtime insurer, saying
it was no longer providing cover-
age for properties in his neighbor-
hood because of the wildfire risk.
able to get him a policy from a
non-admitted insurer. But in June,
Mr. Guest was notified that the
company wouldn’t renew his pol-
icy, citing limited access to his
property—a single road in and
out—that would hamper rescue or
escape in the event of a wildfire.
After another scramble for cov-
erage—with only days to spare be-
fore his policy expired—he was able
to get fire coverage from American
Modern, an Ohio-based company
that is admitted, or licensed to
write policies, in California. He was
able to get a basic policy for $3,680
a year, up from $1,460 a year be-
fore receiving his first nonrenewal
in 2018. ($1,000 of it has since been
refunded.)
The third option for home-
owners who have been dropped is
a state’s FAIR plan, which stands
for Fair Access to Insurance Re-
quirements and is considered the
insurer of last resort.
California’s FAIR plan is limited
to fire damage, leaving home-
owners uncovered for things like
theft, water damage and liability.
However, in November, state Insur-
ance Commissioner Ricardo Lara
announced an expansion of FAIR
plan coverage. Starting April 1, cov-
erage limits will increase to $3 mil-
lion, up from $1.5 million. And
starting June 1, the policies will of-
fer comprehensive homeowners
policies that include coverage for
theft, water damage, falling objects
and liability.
Last week, in early December,
however, FAIR plan President An-
neliese Jivan released a letter call-
ing the expanded coverage “mis-
guided” and asked the Department
of Insurance to withdraw the order.
Among the reasons cited are the
lack of funds and resources to im-
plement the order. A spokesperson
for the Department of Insurance
says the agency will meet with
FAIR officials to work on imple-
menting the commissioner’s order.

HIGH RISKS STALLING PROPERTY VALUES

FROM TOP: PAUL KITAGAKI JR./ZUMA PRESS; ORANGE COUNTY REGISTER/ZUMA PRESS

The difficulty of buying insurance in high-
risk areas could hit the housing market.
In Sacramento, Redfin agent Debbie Ol-
son says she represented a couple in Au-
burn, Calif., earlier this year who found a
home they loved in their preferred neigh-
borhood. But a quote just for fire insurance
came in at $9,000 a year. The sellers of-
fered to pay half of the costs for two years
as part of the deal, but ultimately the cou-
ple purchased property in another neigh-
borhood with lower insurance premiums.
An analysis of 10 high-risk counties in
California by real-estate website Real-
tor.com found that sale prices have flat-
tened or fallen since 2017. Sierra County,
for example, experienced almost 30%
growth in sale prices between 2017 and
2018, but saw sale prices fall 1.9% between
January 2019 and the end of August.
While price declines can’t be blamed en-
tirely on the wildfires, four of the 10 high-
risk counties saw sale prices fall since last
year, and price increases in the other six
counties slowed significantly, the Realtor
analysis found. (News Corp, owner of The
Wall Street Journal, also operates Real-
tor.com under license from the National
Association of Realtors.)
“Nonrenewals are on the rise, threat-
ening home values across the state,” said
Ricardo Lara, commissioner of the Cali-
fornia Department of Insurance at a
news conference last month.

During the Hill Fire in Jurupa Valley, Calif., firefighters worked to save a home.
 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.

THE WALL STREET JOURNAL. Friday, December 13, 2019 | M7

MANSION
TWO YEARS +
This gallery is located between
the living space and work $1.5
space at the home. MILLION
on renovations

G2V

TONY LUONG FOR THE WALL STREET JOURNAL (7); JONATHAN PRINCE (“SHATTER”)
Jello

Range

Mr. Prince designs his sculpture on site and has turned several large, former industrial spaces into galleries.

Work of Art
Continued from page M1
Mr. Prince calls this a
smooth steel water pipes, opened up to reveal reflec-
‘meditation on rumination.’
tive, highly polished stainless steel insides resembling
broken glass. Three of Mr. Prince’s sculptures are cur-
rently for sale at Christie’s for $675,000 each. A work
he sold for $350,000 called “Vestigial Block” is on per-
manent display at the Eli and Edythe Broad Art Mu-
seum at Michigan State University in East Lansing, a
donation of Julie and Edward J. Minskoff. ‘SHATTER’
Both Mr. Prince’s home and the sculptures play on A series of sculptures currently
the same themes: chaos beneath a seemingly perfect displayed at the Christie’s
exterior and fluidity emerging from static materials. Sculpture Garden in New York
Mr. Prince bought the property in Southfield,
Mass., for $1.2 million in 2005. It was an old dairy
barn on 3 acres that had been used as a textile fac-
tory and a space for ballet performances. Attached is
a former industrial building that resembles an airline WHAT The former
dairy barn, left,
hangar with 27-foot-high ceilings, pushing the total
square footage to 23,000.
IT COST has been
converted into
The previous resident, a Manhattan nightclub owner- high-ceilinged
turned jewelry artist named Keith Mitchell, had spent Creating living spaces.
seven years transforming the barn into a six-bedroom, electrical Mr. Prince
lofted living space, keeping the original wood beams but service that turned a library
putting in a modern kitchen. Mr. Mitchell gave up when could handle into his office,
it came to doing anything with the attached industrial industrial loads below left. Mr.
area. Mr. Prince was able to renovate that part of the and machinery Prince, below
building because “he’s like a bulldog, he attacks, attacks, right, in one of
attacks. You need that kind of mental energy for a place $75,000 his work
like that,” says Mr. Mitchell. spaces, the
Mr. Prince spent two years and about $1.5 million Concrete floor of which
on his renovations. He added the pool, put in glass was reinforced
walls where $100,000 with concrete
barn doors to withstand
once resided, Pool industrial loads
and turned a and a crane
library into an $120,000 with a capacity
office. The for- of 30,000
mer ballet  Spa pounds.
stage is now a Bathroom
gallery,
crowded with $100,000
his shiny,
metal works Thermally
atop white insulated
pedestals. Brightly colored polished steel cubes that moving/folding
resemble their name, “Jello,” sit near a giant brown glass wall
semicircle that looks like a doughnut with a bite
taken out. A tall, skinny, white, cattail-shaped work $60,000
hovers overhead.
Downstairs from the gallery, a door leads to the 16 mature trees
domed area that looks like a Quonset hut. Mr. Prince and 100-ft.
took out a hay loft, knocked down cow stalls and hornbeam
added about $100,000 of concrete to create a work- hedge
space that can handle industrial loads and machinery,
including a crane with a capacity of 30,000 pounds. $75,000
This is where he makes all his sculpture by hand, as-
sisted by three other artists.
“This space isn’t a shop. It’s a place of experimen- before moving on to produce films,
tation,” says one of those artists, Marc Palumbo, 45. including 1992’s “The Plague” with
They are working on something that looks like a William Hurt and Robert Duval.
massive wood log (but is actually made of steel) That led to digital media and then
standing on one end, with the middle chewed out. computer animation, culminating
Mr. Prince describes it as a “meditation on rumina- in his creation of a three-dimen-
tion,” meaning he wants people to “chew on it.” sional holograph visualization of
the globe, and an Emmy his com-
pany won for set design. In 2001,
he decided he wanted to be a full-
Both his home and the sculptures play Torus 340 time sculptor.
on the same themes: chaos beneath a He is also something of a part-
time guru, using his house for
seemingly perfect exterior and fluidity weekend consciousness-group ses-
emerging from static materials. sions made up of about a dozen
men. He urges his guests to look
beyond what appears to be the
perfection of the surface to see
On the lower level of the living space is a wood- and accept the imperfections
working shop, where a buffalo hide is stretched on a within.
metal table, pinned with grommets. Mr. Prince is cur- His goal is to communicate the
rently studying the material’s shapes. Two floors importance of self-truth through
above the main living area, in a tower that used to be his intensely physical, metallic in-
a grain silo, is what he calls the meditation room. dustrial art. While he cops to be-
Mr. Prince, who was born and raised in New York ing “into love and gratitude,” he
City, started his career as a dentist. He specialized in The Berkshire Mountains frame Mr. Prince’s industrial workspace where he and his assistants claims he’s not “new agey.” “I have
maxillofacial surgery in Beverly Hills and Manhattan build the pieces by hand. a scientific approach,” he says.
 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.

M8 | Friday, December 13, 2019 THE WALL STREET JOURNAL.

MANSION
IN THE TRENCHES | AMY GAMERMAN

Word of Advice:
Take the Stairs
Agents share their misadventures with small elevators

Q Have you ever elevator stopped. We were halfway be-

gotten stuck in
an elevator
during a showing?
TANIA ISACOFF FRIEDLAND
Associate real-estate broker,
Warburg Realty, New York City
I was selling a small two-bedroom
apartment in a non-doorman prewar co-
op on the Upper East Side. It was an
open house on a hot summer Sunday.
The apartment was on the second floor.
I typically take the stairs, but I had a
group of buyers with me who didn’t feel
like walking. So we piled into the tiny el-
evator along with two resident share-
holders—a total of six people. The door
tween the lobby and the second floor.
One of the shareholders tried calling the
super, but it was his day off. We hit the
alarm button, but no one was around.
A few moments later, one of the buy-
ers said, “Do you smell that?” I looked
up and smoke was pouring into the top
of the elevator. I had my cellphone so I
dialed 911. I could envision the headlines
all over the New York Post: “Broker Dies
During Open House in Elevator Fire.”
At this point, everyone was panicking.
One of the shareholders knew how to
pry open the elevator door. He assisted
each one of us as we jumped down into
the lobby. Later, people told me how
dangerous this was—that people have
been killed that way. Within moments
the Fire Department arrived. It turned
out to be a small electrical fire.
Believe it or not, the buyers still

ERIC PALMA (2)

closed, we moved a little and then the wanted to see the apartment.

JAMES HARRIS I get in and his two kids jump in with me; JILL BIGGS was malfunctioning. I’m alone in
Director they were maybe 10 and 12. The doors Real-estate agent, the dark with my cellphone, flipping
The Agency, Los Angeles closed, and then the power cut out. Coldwell Banker, Hoboken, N.J. out. I call the developer but he’s in
What happened was, the home Mexico. I must have called five
I was walking a client was still on temporary power I had a showing at a townhouse people, anyone I knew—but they
and his two kids around a and could only run so many condominium—a $3.5 million prop- couldn’t help me. They couldn’t
brilliant $40 million house volts on the system. There erty that was still a job site. I got have gotten into the building any-
in Bel-Air—new construc- were probably too many there a half-hour before to turn on way: It’s a concrete-and-steel build-
tion with a glass eleva- lights on, or a filter pump all the lights. I get in the elevator. ing and the outer door is locked.
tor. The client said he running in the pool. It’s one of the new, modern ones So I called my ex-husband—he’s
was afraid of enclosed The three of us were with louvered doors that close au- a contractor—and asked him to get
spaces, but he wanted stuck in the elevator for an tomatically and lock when you on YouTube. He talked me through
me to get in the elevator hour and a half. After about press the button. Your instinct is to putting the elevator doors back on
and try it out. two minutes, we ran out of touch the doors and pull them track. I’m doing this in the dark with
I’m claustrophobic. In conversation. The kids freaked closed—but if you do that, they fall the light on my cellphone. It took
fact, I got stuck in an ele- out and started shouting, off the track and you are stuck. about 25 minutes.
vator nine years ago in “Daddy! Daddy!” I wanted to Who knew? Not me. When I finally got out, the clients
Woodland Hills and swore I scream “Daddy!” too. Finally, the fire There’s always a hand-held were outside waiting, and I had to
would never get in an elevator brigade came and opened the doors. phone in an elevator, but because explain what happened. Now we
again. I know I’m afraid of elevators, I doubt those two kids have gotten in this was a brand-new property it post warning signs.
but he doesn’t. So I say, “Of course!” an elevator since. hadn’t been hooked up. The light —Edited from interviews

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THE WALL STREET JOURNAL. Friday, December 13, 2019 | M9


 

 
 

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M10 | Friday, December 13, 2019 THE WALL STREET JOURNAL.

PRIVATE PROPERTIES

Lachlan Murdoch’s Big Buy

He famously promoted the 1971
championship fight between Mu-
hammad Ali and Joe Frazier.
The deal is the latest in a recent
string of sales to have topped
Lachlan Murdoch, media execu- $100 million in Los Angeles. Ear-
tive and son of media mogul Ru- lier this year, a Holmby Hills house
pert Murdoch, has paid roughly owned by Formula One heiress Pe-
$150 million for Chartwell, a Bel- tra Ecclestone and formerly owned
Air estate, according to people fa- by television mogul Aaron Spelling

JIM BARTSCH; GREGG DEGUIRE/FILMMAGIC/GETTY IMAGES (MURDOCH)

miliar with the deal. sold for close to $120 million, re-
Lachlan Murdoch is co-chair- cords show. In August, NBCUniver-
man of News sal vice chairman Ron Meyer sold
SOLD Corp, which his Malibu, Calif., home for about

$150
owns Dow $100 million, The Wall Street
Jones & Co., Journal reported.
publisher of The Agents say Los Angeles has
MILLION Wall Street been the best-performing luxury
25,000 sq. ft., Journal. He market in the country this year, in
car gallery for didn’t respond terms of ultra-high price tags.
40 vehicles, to a request for Other segments of the market,
75-foot pool, comment. such as the $10 million to $40 mil-
manicured, When it listed lion price category, have suffered
gardens in 2017 for $350 from an oversupply of spec homes,
million, the cha- which has been a drag on prices.
teau-style home was the most ex- The listing agents include Drew
pensive on the market in the coun- Fenton, Jeff Hyland and Gary Gold
try. While this deal falls short of of Hilton & Hyland; Joyce Rey,
that, it still sets a record for a style mansion, according to the could cost in the tens of millions, The home was owned by the Jade Mills and Alexandra Allen of
home in the Los Angeles area. It is listing. The exterior of the 25,000- making the price tag seem even estate of the late media billionaire Coldwell Banker Global Luxury;
also the second most expensive square-foot house was used as the higher. In addition to the main A. Jerrold Perenchio, according to and Drew Gitlin and Susan Gitlin
residential sale ever recorded in Clampett residence in the televi- house, the property has a Wallace people familiar with the deal. He of Berkshire Hathaway HomeSer-
the country, according to data from sion show “The Beverly Hillbillies.” Neff-designed five-bedroom guest- died in 2017 at age 86. vices California Properties.
appraiser Jonathan Miller. The home’s interiors were ren- house, a 75-foot pool, a pool Mr. Perenchio was the chairman —Katherine Clarke
Sitting on more than 10 acres, ovated in the late 1980s, but house, a tennis court, a car gal- and chief executive of Univision.
Chartwell was designed by archi- agents who’ve seen the estate in lery for 40 vehicles and mani- He led the group that purchased it  See more photos of notable
tect Sumner Spaulding in the recent years said it could still re- cured gardens, according to the in 1992, then sold it to a group of homes at WSJ.com/RealEstate.
1930s as a French Neoclassical- quire a multiyear renovation that listing. investors for $12 billion in 2006. Email: privateproperties@wsj.com

ADVERTISEMENT

Distinctive Properties
To advertise: email sales.realestate@wsj.com or WSJ.com/classifieds

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 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.

THE WALL STREET JOURNAL. Friday, December 13, 2019 | M11

  

  
 


   
  
    
      
   
    
       
   
   

     

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 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.

M12 | Friday, December 13, 2019 THE WALL STREET JOURNAL.

MANSION
HOUSE CALL | NORMA KAMALI Norma Kamali at home in
Manhattan’s West Village,

Style Learned on
in October. Left, dressed in
a matador costume made
by her mother, undated.

Mom’s Catwalk

FROM LEFT: NORMA KAMALI/BRAD TRENT FOR THE WALL STREET JOURNAL; BRAD TRENT FOR THE WALL STREET JOURNAL; ALAMY
The fashion designer behind Farrah Fawcett’s
red bathing suit recalls her influences

T
hroughout my childhood, my mother made all my clothes.
Her designs were so beautiful that she changed my outfits
two or three times a day. She even created a photo album,
“Norma’s Life in Pictures.” It was a catalog documenting the
clothes she had made for me.
My mother, Estelle, was Lebanese and impossibly talented. In addition
to being a seamstress, she was a painter and a hairdresser. If I did the
ironing and cleaning, she’d do my hair in Marcel waves. She also could
eat a dish at a restaurant, then make it at home without a recipe.
She was into health food early. I’d awaken to the sound of her grind-
ing down carrots at 6 a.m. All of this planted in my mind the idea that
women could do anything and everything.
I grew up in a tiny apartment on the third floor of a six-story building
on East 77th Street between York and John Jay Park. Most of the build-
ings on our block were built at the start of the 20th century. Originally,
the apartments went to those with tuberculosis so they could live near
the hospital and get fresh air off the East River.
I was very tomboyish. I loved
playing sports, and my friends
and I were super-active.
My father, Sam, was Basque
and worked in his family’s restau-
rant business. He was thin, tall
and very good-looking, with
slicked-back hair. He landed minor
roles in films shot in New York.
Early on, fashion wasn’t as ex-
citing for me as art, painting, I attended New York’s Fashion West Village of Manhattan. I also NORMA ON FARRAH
dance and drawing in anatomy Institute of Technology and stud- have a country house north of New Farrah Fawcett’s red bathing
classes. My bedroom walls were ied under Ana Ishikawa. Despite York designed by Richard Meier. suit was yours? Yes, she was a
covered with references to Mi- being tight with her compliments, Last year, when my business customer. I had no idea she’d
chelangelo, Rudolf Nureyev and she had a way of letting me know turned 50, I decided I had col- wear it for a shoot in 1976.
other artists I admired. I was talented. I felt encouraged. lected too many things. So I gave Were you
As a child, I felt exotic. In the After graduating in 1965, I took them all away. Now my apartment happy? No, I
summers, my skin would turn re- an office job at Northwest Airlines is understated, simple and Zen. hated the
ally dark. Most of the kids in the in New York. On the weekends, I I even gave “Norma’s Life in suit’s fit.
neighborhood were Irish. They flew round trip to London for $29. Pictures” to my younger brother,
Why did she
were fair-skinned with cute little During one trip, I noticed a store Bill. Memories are more impor-
wear it? The
turned-up noses. Mine was on King’s Road called Dandie Fash- tant than things. If what I remem-
photographer
straight. So I slept on my nose When I was 13, my parents di- ions. Inside I saw a huge slosh of ber creates a feeling, I don’t need
needed bath-
hoping it would turn up. vorced and my mother remarried. brilliant psychedelic shades. I was the objects.
ing-suit shots.
One of my first fashion state- Their breakup wasn’t as traumatic like a moth to a flame. —As told to Marc Myers
Farrah reached into her bag and
ments came in sixth grade, when I as our move to the suburbs. After a When I left the airline in 1968,
out it came.
wore layers of starched petticoats. year, we moved back to 77th Street. I opened a basement boutique in Norma Kamali, 74, is a designer
In the late 1950s, when everyone I By high school, I was more in- New York on East 53rd Street. The whose innovations include the Where is the suit today? The
knew was into the same look, I’d terested in vintage clothing from shop started everything for me. Sleeping Bag coat, parachute Smithsonian has it. I begged
come up with a different way to the late 1930s and early ’40s. I Today, I live in a one-bedroom clothing, sweats as fashion and them to let me make a better
wear what I put on. loved how I felt in the clothes. apartment with a guest room in the sculptural swimwear. one. They said no.

Pictured: American Airlines team members surviving and co-surviving cancer

with SU2C ambassador, Tim McGraw

Join American Airlines and Stand Up To Cancer in our mission to help make everyone diagnosed with cancer
a long-term survivor. Donate $25 or more and you’ll receive 10 American Airlines AAdvantage® Miles for
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 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.

JOURNAL REPORT

© 2019 Dow Jones & Company. All Rights Reserved.

CEO COUNCIL THE WALL STREET JOURNAL. Friday, December 13, 2019 | R1

CEOs on the Hot Seat

The Business Roundtable recently said companies should meet the interests of all stakeholders,
rather than just shareholders. CEOs should brace themselves for the consequences.
BY RICK WARTZMAN

I
T’S NO SECRET that big data
and artificial intelligence are
starting to roil a bunch of pro-
fessions. Yet there’s another
job that is also being altered
with extraordinary speed—only
this one is getting reshaped not
so much by high tech but,
rather, by high ideals: chief ex-
ecutive officer.
A loud and swelling chorus is calling for CEOs to
meet the interests of all their stakeholders—custom-
ers, employees, shareholders, the communities in
which they operate and society as a whole.
By contrast, many of those leading the nation’s
biggest companies assumed previously that, while
none of their constituencies could be ignored, the in-
terests of shareholders should invariably come first.
“Much of the discussion has revolved around max-
imizing shareholder wealth,” says legendary Wall
Street lawyer Martin Lipton, who has long main-
tained that companies have put too much emphasis
on short-term financial results at the expense of so-
ciety and, in many instances, to the detriment of
their own long-term viability. “We’ve made some re-
ally bad mistakes. We’re now trying to rectify that.”
In August, the Business Roundtable released a
statement signed by 181 CEOs in which they pledged
“a fundamental commitment” to “deliver value to all”
stakeholders. This was a reversal; since 1997, the
Roundtable had endorsed shareholder primacy.
For CEOs, this new stance is certain to have far-
reaching consequences: heightened scrutiny from
various camps to ensure that the vows made to
stakeholders aren’t empty rhetoric; the necessity to
draw on personal traits and capacities that might
have been underutilized when there were fewer pri-
orities to juggle; and a push by reformers to revamp
the incentives that determine executive pay.
Balancing interests
Tom Wilson, CEO of insurer Allstate Corp., describes
what’s happening as more “evolutionary” than revo-
lutionary. “Businesspeople want to do good,” he says.
Please turn to page R2
Mr. Wartzman is the head of the KH Moon
Center for a Functioning Society, a part of the
Drucker Institute at Claremont Graduate Univer-
sity. He can be reached at reports@wsj.com.

INSIDE
Keeping
STAND BY YOUR CEO? THE SPEAKER SPEAKS MORE CEO COUNCIL

A study finds that

company boards may Talent At the Journal’s
annual CEO
On the Issues
Excerpts from
have a tendency to In a full-employment Council meeting, interviews with
overlook the failings of economy, retaining
Nancy Pelosi talks William Barr,
your best employees
the chief executives is about much more impeachment and Mick Mulvaney
they chose R3 than money R4 the economy R6 and more R6-9

R2 | Friday, December 13, 2019
The Role of the
CEO Is About
N
to Get Harder
Continued from page R1
evertheless, he acknowledges that “most of
the money” being generated by U.S. corpo-
rations—whose profits have soared over the
past two decades, save for during the
2007-09 recession—has “gone to sharehold-
ers,” while the vast majority of workers
have not prospered.
From 1979 to 2018, according to the Eco-
nomic Policy Institute, Americans’ hourly
output went up about 70%, while the hourly
wages and benefits of the typical worker es-
sentially stagnated, increasing less than 12%
after adjusting for inflation. A study pub-
lished last month by the Brookings Institu-
tion showed that 44% of all U.S. workers
ages 18 to 64—53 million people—now hold
low-wage jobs, with median annual earn-
ings of just $17,950.
“We’re in a place where people’s lives
have not been made better off,” says Mr.
Wilson, who serves as chairman of the exec-
utive committee of the U.S. Chamber of
Commerce. In turn, he adds, a good portion
of the public has lost faith in the capitalist
system, while politicians are lining up to
overhaul “our license to operate” and man-
date that corporate fortunes be shared more
widely—a regulatory reaction that, some
fear, could throttle economic growth.
For its part, Allstate boosted its mini-
mum wage to $15 an hour in 2016, and Mr.
Wilson has not been shy about urging his
fellow CEOs to create more decent-paying
jobs. But he underscores that these are not
simple decisions, as he tries to attend to all
of his stakeholders, including the millions
who own Allstate stock.
“It’s not like being a student where I can
get an A in every class,” says Mr. Wilson.
“There are trade-offs.”
You can see this tension play out in the
Drucker Institute’s annual company rank-
ings—a measure that is designed to assess
how effectively managed a corporation is
from a holistic, stakeholder perspective.
(The rankings underlie the Management
Top 250, a list of the best-run U.S. compa-
nies, produced in partnership with The Wall
Street Journal.) Most are highly uneven in
their performance across the five categories
examined: customer satisfaction, employee
engagement and development, innovation,
social responsibility and financial strength.
Indeed, of the 820 companies evaluated this
year, only eight scored among the upper
20% in all five areas.
Done right, watching out for all stake-
holders should ultimately improve societal
well-being and bolster the bottom line.
The Big Issues
CEOs are focusing more on environmental and social concerns, and some issues in particular are
affecting their sustainability efforts.
Which of the following
global issues are most
critical for your
company’s competitive
strategy?
Political uncertainty
across markets
Environmental
degradation*
63%
22
42
Market closures and
Technology skills gap limitations on free trade
32%
26
32 35
*Climate change, resource depletion
Source: Accenture Strategy CEO Study on Sustainability 2019
JOURNAL REPORT | CEO COUNCIL
“Yes, we have to make our margins, be
competitive on price, drive profit, grow,”
says Ajay Banga, CEO of Mastercard Inc.,
the financial-services provider. “That’s
the textbook definition of capitalism, and
that’s what you’ll see if you’re only look-
ing a few feet ahead of you. But when you
raise your eyes a little and recognize that
most companies and nations survive on
people making and spending money, you
realize that you’re part of an intercon-
nected system. Giving people a lift, ex-
panding the middle class, helping them
thrive and grow will also do the same
for you.”
A QUESTION OF COMMITMENT
All that said, whether most CEOs are pre-
pared to make a real difference on the
toughest challenges is an open question.
A number have spoken out on an as-
sortment of important subjects—gun con-
trol, immigration, race relations, affordable
housing, transgender rights and more. But
they can be warier in taking on the issues
that are most core to the business.
On the environment, for instance,
“things are moving in the right direc-
tion—but not fast enough,” says Andrew
Winston, who has ad-
vised major corpora-
tions on sustainability.
“Emissions continue to
go up, and companies As CEOs try to
are still preoccupied
with asking, ‘What navigate the
about the share- crosscurrents,
holder?’ ” A survey this
year of 1,000 CEOs from
they are being
around the world by Ac- forced to summon
centure discovered that many new skills.
just a third of them are
willing to commit im-
mediately to cutting
greenhouse gases by
amounts promulgated in the Paris climate
agreement.
As to the experience of workers, there
tends to be more self-congratulation
among CEOs than honest self-reflection.
Top executives “genuinely believe they
are doing everything they can for their
front-line workers and therefore don’t
have a bad jobs problem,” Katie Bach and
Zeynep Ton of the nonprofit Good Jobs
Institutewrote last month in Harvard
Business Review. “But they aren’t and
they do.”
As CEOs try to navigate the crosscur-
rents, they are being forced to summon a
host of new skills.
“Over the past decade, the CEO of
choice was one who understood the bal-
ance sheet,” says Tierney Remick, co-
leader of the Board and CEO Services
team at Korn Ferry, the organizational
consulting firm. “Over the next decade,
you’re going to need someone who can
drive both a business agenda and a much
broader stakeholder agenda.”
Being successful at this, she says,
“doesn’t mean having a lack of competi-
tiveness.” But it takes considerable empa-
thy and self-awareness, the ability to lis-
ten deeply and communicate cogently, and
the courage to tackle an array of some-
times controversial topics. With an imper-
ative to deal more with what’s happening
outside the company’s walls, a CEO also
has to prove adept at assembling and
leading a strong cadre of senior execu-
tives who can concentrate internally.
“These were all nice-to-haves before,”
Ms. Remick says. “They are must-haves
now.”
HOW WE GOT HERE
In many respects, there is a back-to-the-
future quality in what CEOs are being
How are these issues impacting your company’s ability to address
global environmental, social and economic sustainability challenges?
Increased my company’s sustainability efforts
Reduced or stalled my company’s sustainability efforts
Trust in business
Global and local
governance models
41% 36% 33%
16 21 19 39
54 48
Lack of stable institutions Rising income and
and rule of law wealth disparity
31%
26% 23%
15 33 19 15
34
John Gould/THE WALL STREET JOURNAL
For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.
asked to do. In the 30 years after World
War II, those at the helm of America’s
most prominent corporations routinely
conveyed how crucial it was to look out
for “the balanced best interests of all,” to
use the catchphrase of Ralph Cordiner,
who was CEO of General Electric Co. in
the late 1950s and early ’60s.
But by the 1980s, shareholders had
been left to feel as if they were the one
party that wasn’t being accommodated, as
many companies posted poor financial re-
turns in the face of recession and ever-
fiercer global competition. The Dow Jones
Industrial Average first closed above 1000
in 1972—and wouldn’t again until 1982.
Investors embraced the emerging phi-
losophy of a group of scholars—the Uni-
versity of Chicago’s Milton Friedman, Mi-
chael Jensen of the University of
Rochester (and later Harvard) and oth-
ers—that executives were the “agents” of
the shareholders, and their single aim
should be to make as much money as pos-
sible within the bounds of the law.
“Agency theory” moved quickly and per-
vasively from the halls of academia to the
realm of practice.
In more recent years, however, many
have concluded that this focus on profits
and share price above all has helped to
bring about some of our
most serious environ-
mental and social ills.
And so now, the pendu-
lum is swinging again.
“The CEO job today is
radically different from
what it was 10 years
ago,” says Joshua Bol-
ten, president of the
Business Roundtable.
“They now actually have
to respond to a variety
of stakeholders,” includ-
ing employees who are
apt to express needs and
concerns “beyond wages and working
conditions.”
For example, Mr. Bolten cites several
CEOs who are implementing plans to ag-
gressively reduce their company’s carbon
footprint. In addition to con-
viction about the policy, he
says, “that’s also what
their employees and, per-
haps even more so, po-
tential recruits are de-
manding.”
Paul Polman,
who retired in
2018 as CEO
of consumer-
goods giant
Unilever PLC
and has co-
founded a venture called
Imagine to assist other CEOs
in combating poverty and
global warming, observes
pressure from all directions—
“employees walking out, citi-
zens making their voices
heard, consumers making
spending choices, govern-
ments demanding change.”
And then there are share-
holders, who, as Mr. Polman
points out, are increasingly
weighing where to put capital
based “on the nonfinancials or
intangibles,” including those
captured by environmental, so-
cial and governance metrics.
Last year, the US SIF Founda-
tion reported that U.S. money
managers addressed ESG crite-
ria across $11.6 trillion in as-
sets. That’s one in four dollars
under professional manage-
ment.
THE PRESSURE IS ON
Delivering value to
our customers.
We will further the tradition
of American companies
leading the way in meeting
or exceeding customer ex-
pectations.
THE WALL STREET JOURNAL. THE WALL STREET JOURNAL. Friday, December 13, 2019 | R3
JOURNAL REPORT | CEO COUNCIL
MIXED SIGNALS don’t send mixed messages,” she says.
For CEOs, however, figuring out how to All the while, however, there’s another A New Bottom Line
please shareholders can be a minefield. The
Council of Institutional Investors has op-
set of shareholders who make no bones
about trying to wring out more profit in the
Most CEOs expect a significant shift in the next few years
toward a broader measure of company success.
posed the Business Roundtable statement,
asserting that while “it is critical to respect
short term: activist investors, who have
been known to swoop in and threaten to To what extent do you see the To what extent do you see
stakeholders…accountability to everyone
means accountability to no one.”
oust the CEO unless costs are cut and more
money is handed to those who own the
CEO role in 2025 becoming
more focused on moral/
future CEOs in 2025 shifting
focus from a single focus of
“There has to be a north star, and it’s stock. The presence of activists—who have ethical leadership? profit to a triple bottom line
including profit, people and
long-term shareholder value,” says Ken won more than 800 board seats since 2013,
planet?
Bertsch, executive director of the council. by Lazard Ltd.’s count—is one reason,
While some decry shareholder primacy, Mr. among several, that CEO turnover has been To a great extent To some extent Same
Bertsch worries that it will be replaced by climbing and time on the job has been drop-
“CEO primacy”—with companies chasing all ping. PricewaterhouseCoopers notes that 5% 5%
sorts of social objectives and not being an- median CEO tenure at big public companies
swerable for their actions. stands at about five years, down from eight
Mr. Bertsch concedes that too many in- years in 2000.
vestors “pay excessive attention to what’s “One group wants this, one group wants 33%
happening to share price day to day.” But that—one wants short-term, one wants 38%
56% 62%
plenty of CEOs, he says, “haven’t been good long-term,” says Steve Odland, president
at articulating their long-term vision” for
turning their strategy into desired financial
and CEO of the Conference Board, a busi-
ness research organization, and the former Board Bias
outcomes.
Investment firms with a distant time ho-
rizon, including those that primarily put
CEO of Office Depot Inc. and AutoZone Inc.
“It’s like you’re trying to play a game, and
there are not consistent rules.” Source: Korn Ferry Institute, based on a survey of 163 European CEOs, conducted in August and
And the CEOs
money into passively managed exchange-
traded funds and index funds, have been in-
September 2019.
They Chose
sisting that companies spell out how envi-
ronmental and workforce matters translate
into longer-term opportunity and risk. But COMPENSATION’S ROLE BY DAVE KETCHEN AND JIM COMBS
CEOs complain—usually privately—that At the same time, some wonder whether lived in one of the biggest houses in town, but you didn’t
R
while those in the “corporate engagement” compensation—more than confusion—is the live in a different world,” says Leo Strine, who just stepped eforms such as Sarbanes-Oxley have improved corpo-
department preach a lot about these things, steepest impediment to adopting a true down as chief justice of the Delaware Supreme Court, where rate governance by preventing chief executive offi-
the individuals actually in charge of portfo- stakeholder orientation. many landmark business cases are litigated. cers from stacking boards of directors with their
lios are still often fixated on shorter-term fi- Last year, median pay rose to $12.4 mil- As much as a CEO’s pay level may affect things, so does friends and allies. But a more subtle bias still plagues
nancial gains. lion for the heads of S&P 500 companies, up the mix. Two-thirds of CEO compensation last year was tied many boardrooms—one that policy changes and leg-
“That’s where the power lies,” Mr. Lipton 6.6% from 2017, according to a Wall Street to share price through restricted stock and options. By com- islation can’t combat.
says. Journal analysis. Critics suggest that parison, less than 15% of companies in the S&P 500 incorpo- It’s called choice-supportive bias—the tendency people have to
Betty Yee, who as California’s controller such fat paychecks make it rate ESG-type indicators into their executive-compensation defend a choice even if it is clear that they’ve made a bad decision,
sits on the boards of the California Public hard for CEOs to relate to packages, a review by my colleague Kelly Tang, the Drucker such as voting for a candidate who stumbles once elected or buying
Employees’ Retirement System and the the kinds of hardships Institute’s senior director of research, has found. And gener- a car that later proves unreliable. The bias arises not from an intent
California State Teachers’ Retirement with which many ally, the sums involved are relatively trivial. to deceive but rather from an unconscious need to protect one’s
System, agrees that institutional inves- people are strug- As long as this situation persists, say advocates of a sense of self.
tors can send contradictory signals. gling, and this in- stakeholder approach, expecting CEOs to refrain from favor- In a new study published in the Strategic Management Journal, we
But she says that initiatives such as hibits how far ing shareholders will remain wishful thinking. investigated whether choice-supportive bias affects corporate direc-
the Climate Action 100+, in which they’re willing to Meanwhile, for those who would like to link a bigger slice tors and, if so, what harm it does to companies. While the proverbial
more than 370 investors have go to enhance of CEO compensation to a full range of stakeholder metrics person in the street appears to be easy prey for choice-supportive
banded together to lean on compa- workers’ wages or that include ESG, the absence of a universal structure for bias, we theorized that directors’ education and business experience
nies on greenhouse gases, indicate benefits. doing so is a significant barrier. might protect them.
that they’re on the right track. “We “If you were a Although efforts are under way to remedy this, “things Unfortunately, that’s not the case.
get things done when we CEO in the 1960s, you right now are all over the map,” says Jim DeLoach, man-
aging director at the consulting firm Protiviti. “We need
globally accepted standards.” Remembering the positives
Ms. Yee, the California con- We started with an experiment where we asked 73 corporate direc-
troller, is likewise eager for tors to choose between two hypothetical CEO candidates. The candi-
the government to establish dates possessed comparable strengths (e.g., a great industry reputa-
what stakeholder informa- tion) and weaknesses (e.g., viewed as a narcissist by some peers).
tion companies must dis- After expressing a preference, directors were told that their favored
close. “I can’t over- candidate had in fact been selected to be the new CEO.
state the role of When later asked to recall each of the candidates’ strengths and
the regulators,” weaknesses, the directors tended to remember their chosen candi-
she says. date’s strengths and the other candidate’s weaknesses, and they
Even the tended to forget their candidate’s weaknesses and the other’s
most commit- strengths. The directors also attributed strengths to their chosen
ted CEOs stress candidate and weaknesses to the other that weren’t part of the
44%
that it will be im- original description of either candidate. Despite their business acu-
possible to make progress men, the directors unintentionally rearranged the facts in their
alone. Some, such as Allstate’s minds to support their choice.
Mr. Wilson, want boards of di- Having established that corporate directors are susceptible to de-
rectors to step up. veloping faulty perceptions of their choices, we then asked: Does
Percentage of U.S. Jim Keane, CEO of furniture choice-supportive bias have financial implications? Directors who
maker Steelcase Inc., says helped hire the CEO might sup-
workers ages 18-64
he has been encouraging port the incumbent more than
with low-wage jobs everyone up and down the the company’s performance
ranks to weigh the broader warrants.
impacts of the company’s Hanging On The possibility of this bias
370+
activities. The more directors on a board who were playing out in the boardroom is
“Every decision made by involved in hiring the CEO, the more reluctant most worrisome when a com-
every employee would be they are to change leaders. pany is on shaky ground, so we
better if it more explicitly Number of CEOs fired between 2005 and examined data from poorly per-
considered the contextual 2015 from poorly performing S&P 1500 forming S&P 1500 firms across
Big investors leaning on understanding that comes companies 10 years. We found that direc-
companies on greenhouse from an ESG mind-set,” he tors who helped choose a CEO
gases in the Climate says. 20 were unusually reluctant to re-
Action 100+ initiative That is undoubtedly so. place that executive. Put an-
Yet it will be the CEO who is 15 other way, the more directors on
celebrated for demonstrating the board were involved in the
800+
authentic and meaningful CEO choice, the lower the
10
“woke leadership,” as Ms. chance that a CEO would be
Yee terms it—or who gets fired in the year after two con-
slammed for being all talk. 5 secutive years of underperfor-
mance. Such directors also
Board seats won by activist 0 tended to overpay the CEO rela-
investors since 2013 <3 3 4 5 6 7 8 9 10+ tive to his or her peers despite
NUMBER OF HIRING DIRECTORS ON BOARD poor performance.
Note: A company was considered to be performing poorly if it
suffered declining return on assets in two consecutive years. Study
investigated 1,154 poorly performing firms. Positive change
Source: Strategic Management Journal, Michelle L. Zorn et al. One implication is that some
board turnover after hiring a
new CEO is healthy. There’s no
guarantee, but on average, our data on poorly performing firms indi-
cate that replacing just one of the directors who helped hire the CEO
increases the chances of removing the CEO by about 20% within the
year following two years of poor performance.
Another implication is that choice-supportive bias has a smaller
The Business Roundtable released a ‘Statement on the Purpose of a
Corporation’ in August, signed by 181 CEOs who committed to the following:
impact on board decisions if a board has highly experienced directors
among its ranks, as measured by experience on other boards. Thus,
when turnover happens, filling vacancies with highly experienced di-
rectors is wise.
In addition, we suspect that directors’ susceptibility to choice-sup-
portive bias has implications for other high-stakes decisions. For ex-
ample, directors might be more reluctant to undo failing acquisitions
Supporting the Generating and international expansions if those moves took place under their
Investing in our employees. Dealing fairly watch.
This starts with compensating and ethically with communities in long-term value If so, awareness may be half of the battle. As is true of most psy-
them fairly and providing impor- our suppliers. which we work. for shareholders, chological biases, simply being alert to the possibility of choice-sup-
tant benefits. It also includes sup- We are dedicated to We respect the peo- who provide the cap- portive bias distorting perceptions can help directors protect against
porting them through training and serving as good part- ple in our communi- ital that allows com- its effects. Understanding that it is natural to view one’s decisions too
education that help develop new ners to the other com- ties and protect the panies to invest, favorably can lead directors to ask harder questions if those decisions
skills for a rapidly changing world. panies, large and small, environment by em- grow and innovate. are delivering poor outcomes.
ILLUSTRATION BY ALEX NABAUM
bracing sustainable We are committed to
We foster diversity and inclusion, that help us meet Dr. Ketchen is the Harbert Eminent Scholar at Auburn University
dignity and respect. our missions. practices across our transparency and ef-
and Dr. Combs is the Della Phillips Martha Schenck Chair of
businesses. fective engagement American Private Enterprise at the University of Central Florida.
with shareholders. Michelle Zorn, an associate professor of management at Auburn
University, and Kaitlyn DeGhetto, an assistant professor of
management at the University of Dayton, also contributed to this
article. The authors can be reached at reports@wsj.com.
 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.

R4 | Friday, December 13, 2019 THE WALL STREET JOURNAL.

JOURNAL REPORT | CEO COUNCIL

T
BY HAL GREGERSEN make people immensely happier. Think example, high-school age employees are en- know, to help employees brush up their ré-
about what it will mean when a recruiter titled to free SAT and ACT prep classes. Why sumés in a full-employment economy, but
ODAY’S FULL-EMPLOYMENT comes calling. While anyone is ready at a not do the same for employees’ children? most people know their careers are a long
economy may be a bonanza moment’s notice to leave a soulless worksta- Another company, Salesforce, makes well- game and will stick around for an opportu-
for a company’s sales fig- tion, it is much harder these days for people appointed meeting spaces available for its nity to level up.
ures, but it has a huge cor- to decamp from an office where not only are people to host meetings for outside, non-
porate downside: It’s hard they productive, but they have invested in profit groups they participate in.
to keep the best-performing making it their own—filling shelves with Bring colleagues closer.
employees from jumping things that reflect who they are and what Finally, remember that for many employees,
ship. they care about. Look for the holes the hardest thing about walking away from
Even business leaders who are old enough in their résumés. a job is leaving close colleagues. At too
to remember the last time unemployment was It is easy to leave a boss who seems more many companies today, though, that isn’t
below 4% say the poaching is worse this time Honor families. like an adversary than a coach. By contrast, the case. For example, as more work gets
around, thanks to the advent of LinkedIn and Imagine how great it would be if, when an it’s really hard to leave a boss who you are done through ad hoc projects, people may
other social media geared toward profession- employee got a convinced is in your switch teams too often to form close rela-
als. These allow employers with jobs to fill to tempting call from a corner, who be- tionships naturally. The

The Key to
mine the “passive talent market”—that is, the headhunter and lieves in you and same is true for the rise of
universe of professionals who haven’t even mentioned it at would be sincerely remote working. The an- Managers
put themselves on the market. home, the family’s delighted to see swer isn’t to reverse have been
What can employers do, now that even reaction was, “Aw, your career take course on these, but to handed a

Retaining
their most loyal talent is vulnerable? The best I’d be kind of sad if off. find ways to make up for rare oppor-
managers are getting creative—not by offer- you left XYZ Co.” This is especially the loss in natural rela- tunity to
ing higher pay pre-emptively, but by thinking Recently, a bio- true because most tionship-building. The make people
more about what would make someone sad to tech company I people have had a chief digital officer of one immensely

Your Best
leave, and about whether they are giving em- know held its ninth bad boss at some organization I know is happier, by
ployees enough of those things. They start Youth Leadership point, and realize particularly attuned to eliminating
with a simple question: Even if employees Day, with the spouse that, no matter how this problem because his the bare-
could get more money elsewhere by switching of the chief execu- great the job they team is mainly virtual. So bones work-
jobs, what would they miss and even feel tive serving as MC. are being recruited when he talks with the station.

Employees
wistful about? More learning-ori- for sounds or how team, he always gets peo-
Give people more of these, and they’re less ented than the typi- well it pays, they ple to share news and enthusiasms beyond
likely to entertain come-ons from competi- cal annual summer can’t really know in the strict business reason for the confer-
tors—let alone look for jobs on their own. outing, this one in- advance how the ence call.
cludes TED-style new boss will be. All of these actions not only can help
talks and interactive One manager I bosses fight off poachers, but they also will
Improve your space. workshops. Employ- know realized this leave bosses with a truly cohesive, capable
In some ways the easiest thing to fix is a ees and their chil- It isn’t easy in a full-employment and it hit her: For and committed team. The dividends from
change that has swept through workplaces dren could take a every person on her that will continue long after this labor-tight
economy. The trick is to make
since the last full-employment economy: the beginner’s judo les- team, she should sit economy eases up.
trend toward bare-bones workstations. The son with an Olympic workers think about all the great down with them A last piece of advice, then, is that man-
vast majority of workers, I believe, now sit at athlete, for example, things they’ll miss if they leave. and figure out what agers should apply this lens to their own cal-
desks with either no walls or or participate in a constitutes the big- endar: Does the commitment they are about
low walls. Researchers are “mad scientist” lab, gest hole in their to put on their schedule really align with the
now beginning to show what At one retail or do copper enameling under an artist’s current résumé. Together they pretend current imperative of retaining the most-tal-
workers have long known: company, guidance and go home with a handmade cre- they’re looking at a stranger’s CV with an ented employees? Would spending that hour
Open offices are a colossal high-school ation. eye to filling a next-level job. What would on that task make people understand that
mistake unless the only thing age This is just one example of how some take it to that next level, really make it pop they have a brighter future with the organi-
a company is concerned employees companies are finding their way to employ- out from a field of other candidates? Maybe zation than elsewhere?
about is real-estate costs. It’s are entitled ees’ hearts through their families. Some of the person could have managed a different If not, bosses should think twice about
the thing that drives knowl- to free SAT this is simply extending the same courtesies kind of project, or had more budget respon- saying yes to it.
edge workers craziest as ev- and ACT a little further—like sending flowers to sibility. Maybe they could use some “proof
eryone craves more personal prep classes. quinceañeras and not just to funerals. But points” about how much their work contrib- Dr. Gregersen is a senior lecturer at the
space. Why not do much of it goes further to consider how a uted to the bottom line or built up the local MIT Sloan School of Management, author
The upside, of course, is the same for family could benefit from having their family community. Make it your mutual goal to add of “Questions Are the Answer” and co-
that managers have been employees’ member work with an organization. At one that killer line to their résumé. author of “The Innovator’s DNA.” He can
handed a rare opportunity to children? of the world’s largest retail companies, for It sounds awfully counterintuitive, I be reached at reports@wsj.com.

On the Move
Workers in the U.S. have shown a tendency in recent years to spend less time with the same employer.
The amount of time U.S. adults have Median tenure with current employer of U.S. adults by industry, 2010-2018
spent with the same employer, January 2018
2010-2018 Tenure decreased Stay longer
Those who have spent Utilities Tenure increased
12 months or less with
the same employer 9 years January 2010
increased to 22.3% Beverage and tobacco products’ median
tenure decreased the most: 4 years.
%

Those who have 

spent 5 to 9 years
decreased to 18.8% Local government
MEDIAN TENURE WITH CURRENT EMPLOYER

3 to 4 years
7

State government
5


Hospitals Retail trade

5
10 to 14 years

Construction Professional and

 20 years or more
 technical services

Health services,
3 except hospitals
13 to 23 months
15 to 19 years Food services and
Waste management and remediation
drinking places
2 years services’ tenure increased the most: 2.9 years. Stay shorter
5
ALEX NABAUM


2010 ’18 0 2 4 6 8 10 12 14 16 million
TOTAL U.S. ADULTS BY INDUSTRY
Source: Bureau of Labor Statistics Ellie Zhu/THE WALL STREET JOURNAL
 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.
THE WALL STREET JOURNAL.
A Whole New
Communications
Ecosystem in the 5G Era
The future has arrived in the form of 5G technology. As telecommunication providers race
to tap into the potential that 5G will bring, technology brands and device makers will
also have a chance to join a whole new ecosystem of connected devices and services.
T
he next big thing in mobile connectivity
has begun rolling out. 5G networks will
be a cornerstone in building essential
infrastructure for new business models. 5G
is expected to bring unprecedented data speeds,
low latency and near-instant connectivity to users
and service providers. It will let us stream high-
quality video in seconds, enable a new generation
of IoT, build a foundation for smarter factories and
cities, and even access virtual reality on the move.
But making 5G work is no simple task; it requires
technology that is trusted, proven and reliable.
Devices will need to seamlessly connect to legacy
networks if 5G is unavailable, massive amounts
of data need to be exchanged and analyzed, and
a new ecosystem of communicating devices will
need to be brought into conversation with each
other. Technology companies are now stepping
  

 
  


up and creating the devices and infrastructure to
do just this.
End-to-end 5G solution
  
Special Advertising Feature
TECHNOLOGY REPORT
antenna and multi-node 5G chipsets. In addition,
one of the Japanese operators has selected
Samsung as its 5G network partner to launch
commercial service in March 2020.
The Internet of (mobile) Things
We have been living in the IoT era for some time
now. Smart speakers and other ‘smart’ products can
be regularly seen in most homes, albeit at a limited
scale and only able to communicate via a Wi-Fi link.
Now 5G is set to change the scene. 5G supports
one million simultaneous connections per square
kilometer, which, when combined with high-speeds
and low latency, will have businesses eager to use
5G first and foremost with IoT. In manufacturing,
for example, thousands of sensors can assist to
detect security risks, potential hazards and improve
operational performance.
AT&T and Samsung recently launched the
‘Innovation Zone’ in Austin, Texas to explore how 5G
can improve manufacturing and provide insight into
the future of Smart Factories.
Friday, December 13, 2019 | R5
originally tasked with setting standards for 3G, has
worked with key stakeholders to establish a standard
for network providers to guide the industry’s
development. As 5G evolves, technology at large
will need to comply to new standards that ensure the
trust, reliability and security necessary to bring new
consumers into the 5G era.
Appreciating the importance of built-in security
in all aspects of the 5G ecosystem, Samsung has
taken a leading role in setting international and
industry standards—much like it did during previous
network transitions, for example, when the industry
transitioned from 3G to LTE(4G).New use cases,such
as connected cars and hospitals, rely on data that, if
stolen or intercepted, carry the risk in which safety or
privacy may be compromised.Samsung Knox,which
is embedded in Galaxy smartphones and various
 
security agencies around the world, including the
U.S.Department of Defense.The combined power of
Samsung’s on-device and forthcoming on-network
security will keep users safe at every touchpoint
across the 5G network.
  
  
  
  
a smartphone, as makers launch new 5G-enabled The platform for success Working together
devices with the components needed to connect to
5G networks.Samsung’s Galaxy S10 5G,for example, 
 

   

   

     

 
 


 deploy their 5G service on schedule and deliver
available in the U.S. on Sprint, Verizon and AT&T as
each carrier rolls-out its own 5G network across the
country.
  
 
 

  
than 40 years, Samsung has been standing ready
for the 5G revolution, offering an end-to-end 5G
solution that goes beyond smartphones to support
the larger ecosystem. Samsung’s 5G network
equipment is already deployed for commercial
service by three of the top U.S. carriers, and the
company is also working with carriers all around
the world to expand 5G coverage. Korea delivered

    
     
 need to align on a set of industry-wide rules to shape
5G networks in the world, supported by Samsung’s
network equipment with the latest Massive MIMO
to the network and, at least in the short term, switch
5G-enabled,next-generation devices cannot operate
alone. With a new generation of connectivity also
come new standards for compliance, where device
makers,network carriers and infrastructure providers
care of, businesses, municipalities and consumers
innovation.
3GPP, a third-generation partnership project
the scale of coverage required by customers.
Manufacturers of connected cars, for example, need
mobile control units that will give stable connections
to 4G in areas where 5G is yet unavailable.
In the next few years, mobile carriers, network
providers and device manufacturers will begin
offering a broad range of 5G tools, but not all will
be equal. Choosing the right technology partner
will be crucial to dealing with the challenges of the
transition to 5G, as well as taking advantage of its
opportunities. With their technology needs taken
can focus on the transformative effect of our world’s
new communications ecosystem.

Samsung’s 5G-enabled devices include the Galaxy S10 5G, Galaxy Note 10+, Note10, Galaxy A90 and Galaxy Fold

The Wall Street Journal news organization was not involved in the creation of this content. This content was commissioned by Samsung.
 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.

R6 | Friday, December 13, 2019 THE WALL STREET JOURNAL.

JOURNAL REPORT | CEO COUNCIL

Pelosi Talks
Impeachment
And Growth
The Speaker of the House says despite
some strong economic indicators, wage
stagnation is hurting a lot of families

T
HE POSSIBLE IMPEACHMENT of President
Trump holds the potential not only to
affect the election of 2020 and change
the political party in power but also to
reshape the national agenda and the
landscape for business. To delve into
the issues, Matt Murray, editor in chief
of The Wall Street Journal, spoke with
California Democrat Nancy Pelosi, speaker of the U.S.
House of Representatives. Here are edited excerpts of
the conversation.

The big question

MR. MURRAY: The near consensus in this town seems to be the
Democrats have the votes to impeach and the Senate will ac-
quit. Separate from the merits of the case, do you agree with
that assessment?
MRS. PELOSI: You may think I’m eager to speak about it. But
we’re not eager to impeach a president. Nobody comes to Con-
gress to impeach a president. This is a very sad time for our
country. But we do have a responsibility to uphold our oath
of office to protect and defend the Constitution and the
American people.
On an issue like this, we don’t count the votes. I’ve never
asked anybody, were they for the inquiry. The growth question ent set of circumstances, we must The economy will really grow
There’s no glee in any of this. It’s prayerful, it’s somber, it’s MR. MURRAY: You know the strains take advantage of that opportunity for everyone when people have
sad for our country. I’d hoped, over a long period, there was on the global economy. You know to talk to each other, to listen to each more purchasing power. Spend, in-
something that could be China’s hurting. You know about the other, to value work. ject demand into the economy, and
exculpatory for the presi- tariffs. The American economy meet the needs of their families.
dent, because I didn’t keeps powering on. It’s not the We have to work in a public/pri-
want to ever think that strongest. But to what do you attri- vate/nonprofit way in order to
the president of the
United States would be
bute the continued job creation and
strength of this economy, even with
VOICES grow the economy, without de-
monizing anybody or distrusting
FROM THE
in a situation that made necessary the actions, by his actions, all the forces? the motivation of anyone.
CONFERENCE
that we have to take now. MRS. PELOSI: As you list all of those I do believe that what will bring
things, you forgot to mention the us all together are the arts. The
MR. MURRAY: Why not censure, at this point? Is that still stagnation of wages, which is a very poet Shelley once wrote the great-
alive? debilitating issue in most American est force for moral good is imagi-
MRS. PELOSI: No, it’s not alive. Never had a life. families. They’re not having a signif- nation. Creativity. And when peo-
icant increase in their pay over the ple enjoy art, music, theater,
MR. MURRAY: If you talk to CEOs, one of the big themes we’ve years in terms of relating to inflation whatever, laugh together, cry to-
heard about the last five or six years is uncertainty. There’s a or any other measure. While there gether, be inspired together, when
broad sense of frustration that the government feels divided. may be some indicators that are you use imagination to put your-
It’s hard to know where policy’s going. You’ve decried that, as great for us—the stock market’s up, self in someone else’s position, it is
other leaders have. Impeachment is obviously feeding that. Is this or that—that isn’t increasing very healing for our country, and
there a way past that kind of divide? consumer confidence to the extent very repairing.
MRS. PELOSI: Impeachment has nothing to do with that. I don’t that we needed to do. “While weighing the Our founders gave us much
want anybody to think that our economy will suffer because of When I send people to the table to interests of different guidance in many ways. One of
impeachment. What we have to do, though, is to come to terms negotiate, I always say, “Just go as stakeholders matters, at them was e pluribus unum. They
about a very serious matter, the disparity of income in our coun- an agnostic. Put in the middle of the the end of the day, there couldn’t imagine how many we
try, and how productivity and wages should be rising the same table growth. How do we grow the has to be an organizing would be, or how different we
as corporate pay is. economy in a way to create good- principle, a North Star, would be from each other. But they
We also have a challenge to the existence of our planet in the paying jobs and reduce the na- if you will. And we think knew we always had to try for
climate crisis. We have to, as we deal with that, do so in a way tional debt?” that needs to be wonders. They had their differ-
that lifts people up, creates good-paying jobs. I see it as a way And be agnostic. Wherever the delivering sustainable ences and their fights about the
to bring people together, and have people be participating in a good ideas come from, right, left, value, shareholder value role of government and the federal
way that they never thought possible because these are many whatever, we have to listen. We have for the long term.” government versus local. But we
new technologies. to be confident enough about what have one country, one destiny.
Whether it’s a climate issue, or how we build the infrastruc- our priorities are, but humble — AMY BORRUS, Let’s make the most of it work-
ture of America in a green way, or how we address the disparity enough to listen to what that might Incoming Executive Director, ing together for the good of our
in income, we have to do so with everyone at the table. be. I do believe that, under a differ- Council of Institutional country.
Investors

Kushner on
If you’ve noticed, in the swing districts the tant issues. First of all, I think it’s a divisive
president won that are currently held by Dem- issue in our country, and bringing a resolution
ocrats, there’s been a very aggressive effort to to it would help us patch that up.

Fixing the speak to those voters and say to them, “They

said they were going to Congress to try to
Second of all, economically, it’s a tremendous
issue. If you look at a country like Australia that

Immigration work on your issues, work for the country, and

this is what they’re spending their time on.”
has a merit-based immigration system, they ha-
ven’t had a recession in 28 years. A lot of these

System
MR. SEIB: But if the case is that strong, why
not participate in the process?
MR. KUSHNER: I think it’s a predetermined
outcome. First of all, they never gave due
process. They were doing depositions in the
companies that we meet with in the high-tech
industry, they want to bring people into this
country. They’re opening offices in other places
because they can’t get some of their most
skilled people who are high wage earners, GDP
creators, job creators into the country.
DENNY HENRY FOR THE WALL STREET JOURNAL (2); RALPH ALSWANG FOR THE WALL STREET JOURNAL

These are trying times for the White House—
perhaps the most trying in recent memory.
Along with the impeachment process, there
have been debates over trade and foreign
policy, often heated.
To get an inside look at those issues—as
well as President Trump’s plans for his 2020
campaign—Gerald F. Seib, executive Washing-
ton editor of The Wall Street Journal, spoke
with Jared Kushner, senior adviser to the
president. Here are edited excerpts of the con-
versation.
MR. SEIB: Tell me what the White House
strategy is in handling what’s happening in
the House right now on impeachment. And
when the issue gets to the Senate, which it
likely will, what’s the White House approach
going to be?
MR. KUSHNER: We’ve been hearing about
impeachment since the day I got to Washing-
ton. They’ve been attacking the president. A
lot of people didn’t expect that he would win.
A lot of people were unhappy that he won.
They made the decision before the whole
Ukraine thing even came up. So we were pre-
pared for it.
The first thing we did is we said, “Let’s just
get all the facts and make sure you know all
the facts.” Then we said, “Well, if they’re do-
ing this, let’s make sure that we’re making
them pay as big a political price as possible.”
basement. They weren’t allowing White
House lawyers to come. They weren’t allow-
ing agency lawyers to come. They weren’t re-
specting the executive privilege and a lot of
the established norms that have been liti-
gated over time.
They had a whistle blower who basically
said something was done wrong, but he hadn’t
heard the call. The president said, “Let’s re-
lease the transcript.” Then they said there was
a quid pro quo, and the quid was basically that
we were asking them to investigate a political
opponent, which when you saw the transcript,
it’s not what he was asking for.
They were saying that we did that in ex-
change for the aid being held up, and the aid
was paid.
MR. SEIB: Let me turn to something else
you’ve been involved in, which is immigra-
tion. A gap seems to be growing in this town.
Are you going to have another run at that?
MR. KUSHNER: I hope we get a chance to do
that. I think that it’s one of the most impor-
We need a fundamental change to our immi-
gration system. Not just for the high-tech com-
panies, but also for a lot of the different indus-
tries in the country.
We have a very detailed bill that we drafted
on merit-based immigration.
And then we did a bill on border security as
well. What is the Rolls-Royce version of border
security? Then make sure that trade can happen
much quicker. We’ve put together a very good
package on that, and we’re hoping to unify a lot
of the Republican Party around the merit-based
system and the immigration. And the border se-
curity.
MR. SEIB: You say unify the Republican Party.
There is the Democratic Party. Do you have
any hope of unifying them around the ap-
proach you’re talking about?
MR. KUSHNER: That will be up to the presi-
dent if he wants to engage with them. I just
think that it’s important to have the Republi-
cans unified on what they want to do before
they got to the negotiations.
 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.

THE WALL STREET JOURNAL. Friday, December 13, 2019 | R7

JOURNAL REPORT | CEO COUNCIL

Mulvaney on
culture discussion you’ve heard
would be bound up in phase one.
But I think it makes perfect sense,
given the complexities of the deal, to
be hard. I think everybody recog- charge, this is what the spending
nizes the fact that at some point in would look like.” And that budget
time, we were going to have to have had dramatically smaller deficits
these discussions with the Chinese. than on there [a chart showing an-

Ukraine, China
break it down into smaller pieces. To
see if you can walk before you can
run and crawl before you can walk.
MR. BUSSEY: Phase one has been
described as, “You’re buying more
agricultural goods from us. We’re
Also: the Republicans’ inability to rein in the lowering some selective tariffs.”
deficit when they were in power MR. MULVANEY: I think that’s
MR. BUSSEY: Let’s move on to an-
other sticky subject, the deficit. We
can understand why in 2009, 2010
this happened. But over the last three
years of some of the best jobs num-
bers and some of the strongest econ-
omy we’ve had in years, it’s growing.
You were once a deficit hawk, a Tea
nual U.S. budget deficits]. What that
exposes is that, even when the Re-
publicans are in charge of the
House, some Republicans like spend-
ing money as much as Democrats.
It’s hard to stop spending money.
MR. BUSSEY: Your stated expec-
tations were that the tax cut would
stimulate the economy to the extent

A
cting White
House chief of
staff Mick Mul-
vaney, in an ap-
pearance at The
Wall Street
Journal’s an-
nual CEO Coun-
cil meeting on Tuesday, was non-
committal when asked whether he
and Secretary of State Mike Pompeo
would testify in a Senate impeach-
ment hearing.
“We’ll do whatever the president
wants us to do, is what it comes
down to,” said Mr. Mulvaney.
Mr. Mulvaney had more to say on
trade talks with China and the U.S.
economy, and he shared his
thoughts, and those of
President Trump, with
Wall Street Journal As-
sociate Editor John Trade
Bussey. Edited excerpts talks with
follow.
China
MR. BUSSEY: Gordon were
Sondland, the Trump-ap- ‘always
pointed ambassador to
the European Union, says going to
that you were in the loop be hard.’
on everything—the presi-
dent’s effort to pressure
Ukraine, to announce an investiga-
tion of the Bidens, and to investigate
CHRIS WILLIAMS FOR THE WALL STREET JOURNAL
probably not unreasonable. Party man. What happened? that the economy would grow faster
MR. BUSSEY: That seems to be at MR. MULVANEY: The years that re- than the deficit would accrue. And
the opportunity, if the president in- best a return to a status quo. And ally bother me the most were, I guess that hasn’t happened.
structs me to tell my side of the it’s after tariffs have been imposed it was the budget years ‘17 and ‘18. MR. MULVANEY: Portions of it have.
story. I’m looking forward to it. that have cost consumers, after tax- Because that’s when Republicans If you drill down into the numbers,
payers have had to pay additional held the House, the Senate and the and again, it’s been a year since I’ve
MR. BUSSEY: Sounds like the White funds to farmers who were hit by re- White House, and the deficit num- looked at this, I think almost all of
House is taking the fifth. taliatory tariffs in China. So it’s re- bers were way too big then. And peo- the deficit that’s attributable to the
MR. MULVANEY: No, John. That’s ally not even a return to the status ple said, “Oh, Mulvaney, you’re the tax deal is related to the child-care
just not right. You take the fifth quo, it’s a half step back to the sta- budget director, you’re a deficit tax credit.
when you’re in court. That’s not tus quo, and at some cost to the U.S. hawk, how could you allow this to The corporate tax cut actually did
what this is. This is a kangaroo pro- Not a great report card for three happen?” exactly what we said that it would
cess. And I don’t mean to be too en- years of negotiating. Well, the truth of the matter is, do, generated a fair amount of reve-
ergetic about this, but this was MR. MULVANEY: I disagree. We what’s the president’s budget? The nue, so I’m very pleased with the re-
never a level playing field. You’re wouldn’t be having any of these con- president’s budget is essentially a sults of that, and certainly we have
never given the opportunity to tell versations if Donald Trump wasn’t messaging document. And the mes- no complaints about the amount of
your side of the story. Again, would president. This was always going to sage is, “If the president were in growth that we have.
anybody in this room go into that
setting without the White House
counsel? That makes no sense at all.
Would you go in not knowing who’s
going to be able to ask
you questions and for how
long? Keep in mind, a
couple different times
during this process, the
rules changed in the mid-
dle of the hearing.
MR. BUSSEY: Let’s talk
about the next trade deal,
China. Dec. 15 is the dead-
line that the administra-
tion has given [for addi-
tional tariffs on Chinese
goods].
MR. MULVANEY: What happens on

this debunked server issue, in return
for Ukraine getting an audience with
the president and military aid.
What’s your response?
MR. MULVANEY: I’m not going to
testify here today, but I will remind
everybody what Sondland said,
which is that he very rarely talked to
me and couldn’t get me on the
phone. The Democrats have certainly
picked and chose what they want to
say. … I very much look forward to
Dec. 15, I think, will have a lot to do
with what happens between now
and Dec. 15. What’s the trajectory of
the discussions at that time.
MR. BUSSEY: What is the trajectory?
MR. MULVANEY: I think that the
trajectory toward a phase-one deal
is pretty good. Now the phase-one
deal is sort of the smaller-compo-
nents parts that deal mostly with
trade and not with some of the
structural issues. A lot of the agri-
 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.

R8 | Friday, December 13, 2019 THE WALL STREET JOURNAL.

JOURNAL REPORT | CEO COUNCIL

to other trading partners? ‘I think it’s

MR. KUDLOW: I think so. And as you
know, we’re in negotiations with better than
China. We’re also in negotiations Nafta. I think
with Japan. And we’re also in nego-
tiations with the EU. We may be in
it’s broader
negotiations with the United King- than Nafta.’
dom if that works out.
I have known [U.S. Trade Repre-
sentative] Bob Lighthizer for a very MS. HENDERSON: For individuals or
long time. I think he’s the best trade for companies?
negotiator in the business. He has MR. KUDLOW: My guess is it will
created a template, and it’s going to have a very strong emphasis on mid-
be very pro-growth. dle-class tax relief. And my guess is
it will include both business and in-
dividual reforms. And perhaps mak-
MS. HENDERSON: You and others in ing some things permanent. I
the administration have defended wouldn’t expect it until well into
tariffs as a tactic toward the goals 2020. Probably close to the election.
of leveling the playing field, making
trade fairer for American companies
and workers, stopping forced tech-
nology transfer and intellectual-
property theft. Executives have said
VOICES
the uncertainty is making it hard for FROM THE CONFERENCE
them to plan. And it isn’t just China.
We’ve had new tariffs announced
last week on Argentina and Brazil.
MR. KUDLOW: We haven’t imple-
mented any new tariffs. No decisions
have been made.

A Template for Lawrence Kudlow

says the new pact
with Mexico and
MS. HENDERSON: There also have
been proposed tariffs on France. And
last spring the president threatened
to impose tariffs on Mexico and then

Trade Pacts Canada is a model

for other deals
didn’t. Many executives have said
this has caused them to hold back on
“What we’re finding is
that automation is in no

T
he U.S. economy has been growing since 2009, its longest
expansion on record. But as the global economy shows
signs of slowing and trade negotiations heat up, where
are things headed?
Lawrence Kudlow, director of the National Economic
Council at the White House, sat down with Nell Hender-
son, The Wall Street Journal’s economics editor, to dis-
cuss these and other issues.
Edited excerpts follow.
mission. A lot of people were quot-
ing lower numbers, but they actually
gave wide ranges of impact on the
U.S. economy over several years. On
jobs, the range was 176,000 to
589,000. The midpoint is 382,000,
which is a gigantic number. On GDP,
the midpoint was three-quarters of
a percent. So you could over time
investment and hiring. Many econo-
mists have said that is a reason for
the global slowdown and U.S. eco-
nomic slowdown this year. How do
you respond?
MR. KUDLOW: The U.S. economy is
in great shape and getting better.
We’ve had a soft patch after a year
of very, very, very stringent mone-
tary tightening, which is a key point.
Now the Fed has taken the foot off
way replacing jobs. But
what we do need is for the
people that are working
in our warehouses and our
fulfillment centers to be
able to interact with that
automation. They need
some level of technical
skills, which we provide
as on-the-job training for

CHRIS WILLIAMS FOR THE WALL STREET JOURNAL (2)

them. We do gaming
have an increase of three-quarters of the brake, and the balance sheet is technology so we can
MS. HENDERSON: House Speaker Nancy Pelosi just announced that Demo- a percent on real GDP a year. Those growing again. have them learn through
crats and the administration have reached agreement on a U.S.-Mexico-Can- are big numbers. The recent job numbers have games. We make it fun
ada trade deal and expect to vote next week. Is the new deal really better There also is a currency-stability been terrific. Housing numbers have so that they can continue
than Nafta? provision in there that’s never been been terrific. We had very good pro- to have the skills that
MR. KUDLOW: I think it’s better than Nafta. I think it’s broader than Nafta. done before. That is why we always ductivity numbers this morning. they need.”
And I think it updates Nafta in some important new ways. thought this was a template of a America is working. — BETH GALETTI, Senior
You have new economy issues, in particular intellectual-property rights, trade agreement. Vice President, World-Wide
which had never been put into one of these trade agreements before. Finan- MS. HENDERSON: Is the president Human Resources,
cial and digital services, too. They’re going to make a big difference. And I MS. HENDERSON: When you say going to propose another tax cut? Amazon.com Inc.
think you’re going to get a lot of investment that we might not have had. template, do you mean this is the MR. KUDLOW: We’re working on
I just pulled out some of the estimates from the International Trade Com- type of agreement you could apply something called Tax Cuts 2.0.
©2019 Dow Jones & Co., Inc. All rights reserved. 6DJ7580

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the Road to 2020
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 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.
THE WALL STREET JOURNAL.
William Barr
Vs. IG Report
P
articipants at the annual Wall
Street Journal CEO Council
meeting this week watched
history unfold as U.S. Attorney
General William Barr took to
the stage to deliver an ex-
traordinary attack on the Fed-
eral Bureau of Investigation,
and to defend his boss, President Trump.
The attorney general was interviewed by
Wall Street Journal Editor at Large Gerard
Baker. Edited excerpts follow.
MR. BAKER: It may possibly have captured
your attention this morning that the House of
Representatives published two articles of im-
peachment against the president.
MR. BARR: There’s this political constitutional
process under way on the Hill, and the attor-
ney general was not part of that process.
And at this stage I’m just not going to com-
ment on it.
I will say that on the article of impeach-
ment relating to obstruction, I don’t believe
it’s the case that where somebody, including a
branch of government, is asserting a legal
privilege that they have under the law, that
that constitutes obstruction.
MR. BAKER: Let’s move on to the other issue
that was occupying a lot of your attention
yesterday, which was the publication of the
report of the Justice Department inspector
general, Michael Horowitz, into the origins
and the conduct of the investigation of Presi-
dent Trump and his associates around the
Russia allegations about collusion with Rus-
sia. Mr. Horowitz in his report said yesterday,
“We concluded that the FBI had an autho-
rized purpose when it opened Crossfire Hurri-
cane”—that was the name given to the inves-
tigation—”to obtain information about or
VOICES
FROM THE CONFERENCE
“What am I going to say that will
inform you any more about Presi-
dent Trump? What you see is
what you get. I had a pretty good
relationship with him. I was blunt
with him about what I was doing.
There was no behind-the-scenes
things going on. And again, where
I come from out West, actions
speak louder than words. I quit on
RALPH ALSWANG FOR THE WALL STREET JOURNAL (2)
him. I think that says enough. And
the people who want me to say
more generally are ones who want
me to come out against the presi-
dent. We only have one president
at a time. You can like him or dis-
like him. But I thought it was best
I stay silent.”
—JAMES MATTIS, former U.S. Secre-
tary of Defense (2017-2018); Distin-
guished Fellow, Hoover Institution
Friday, December 13, 2019 | R9
JOURNAL REPORT | CEO COUNCIL
MR. BAKER: Do you think there was some
political motivation on the part of people at
the FBI to go after the Trump campaign in
this way?
MR. BARR: That’s why we have [U.S. Attor-
ney John] Durham. Durham is able to look at
all the evidence, he’s able to not only look at
the evidence within the FBI, he’s able to re-
quire people to testify. He’s able to talk to
other agencies, he’s able to talk to private
parties.
There was a lot of swirl of activity going
on at this time, it wasn’t all in the FBI. So I
think he will have a broader appreciation of
all the facts, and a determination can be
made. I don’t know what the motivations
were and I’m not saying they were improper
motivations, but I think it’s premature to rule
definitively there wasn’t.
MR. BAKER: On the Ukraine issue, the fa-
mous July 25 phone call between President
Trump and President Zelensky, there’s a
quote where President Trump says to Presi-
dent Zelensky, “There’s a lot of talk about
Biden’s son, that Biden stopped the prosecu-
tion,” that was of the Ukrainian prosecutor,
“and a lot of people want to find out about
that. So whatever you can do with the attor-
ney general would be great. It seems horri-
ble to me.” Did the Ukrainians do anything
with you?
MR. BARR: No.
MR. BAKER: Nothing at all?
MR. BARR: No. And that’s taken out of con-
text, just to be fair. In the president’s call he
The attorney general the person is witting.” And that’s simply not started out by talking about the abuses in the
details where he true. I have authorized defensive briefings, 2016 election that he said, “our country has
disagrees with the paid a heavy price for,” and he asked him to
and I know of defensive briefings that are
conclusions about regularly conducted. You look at all the cir- work with the attorney general on that.
the origins of the cumstances. Now the fact is, I was smart enough not to
If your purpose was to protect the elec- get involved with Ukraine, at least put it very
FBI investigation tion, then you would’ve done a defensive low on the list.
briefing here, because the chances of people
like Sessions or Chris Christie being in ca- MR. BAKER: Are you contrasting yourself
hoots with the Russians were pretty minimal. with Rudy Giuliani?
protect against a national security threat or But if there was stuff going on, then by going MR. BARR: No. I’m just saying that that
federal crime.” in, you brace them and you disrupt the activ- hadn’t reached the top of my to-do list yet,
You said in response to that yesterday, ity in time to protect the election. and so fortunately I hadn’t looked into the
“The FBI launched an intrusive investigation But it just doesn’t hold water because on Ukraine situation.
on the thinnest of suspicions that were, in my Aug. 4 they contacted the head of Russian in-
view, insufficient to justify the steps taken.” telligence and said, “We know what you’re up MR. BAKER: The allegation was that a U.S.
Could you tell us where exactly you disagree to. You’d better stop it.” They did again in citizen was perhaps corruptly acting with a
with Mr. Horowitz? later August, and President Obama did it di- Ukrainian. All the pressure was on the
MR. BARR: I think there are three parts or rectly in September. So it doesn’t strike me Ukrainians to at least announce an investi-
issues, let’s say categories of analysis in the as plausible that you would tell the Russians, gation. Why would that not be a matter for
report. The first is, was the investigation ad- who clearly were guilty of interference. But U.S. investigatory authorities?
equately predicated, the start of it? The sec- you wouldn’t go and talk to the campaign. MR. BARR: At the time I don’t know whether
ond one is, how was it conducted? And I That makes no sense. it was or not, frankly.
break that down into two things: How was
it conducted before the election and how
was it conducted after the election? The
real meat of Horowitz’s work, and the real
thrust of the report actually deals with
the conduct of the investigation, where I
think it quickly became apparent that it
was a travesty.
‘Where I disagree with
Mike is I just think this
was very flimsy.’
I think that it’s a big deal to use the law
enforcement and the intelligence resources
of the United States government to in-
vestigate a campaign of especially an op-
posing party.
MR. BAKER: The report does make clear
there were concerns about that and dis-
cussions at very high levels within the FBI
as to the sensitive information—
MR. BARR: What is the basis you have for
looking into something? And what are rea-
sonable steps to take, taking into consider-
ation the weight of the evidence that’s
prompting you to do that, the alternatives
Data has a story to tell.
available, and exactly what you were trying
to accomplish, and also the sensitivity of
the area involved here, a political cam-
paign—core First Amendment activity.
We give it a voice.
And where I disagree with Mike is I just
think this was very flimsy. This was a com- ®
ment made by a 28-year-old volunteer on
a campaign in a bar offhand, which was
described as a suggestion of a suggestion.
And I personally think the subject matter
Inovalon is a leading provider of cloud-based platforms
of it, some vague allusion to the fact that empowering data-driven healthcare.
the Russians may have something that they
could dump—at that time in May 2016
there was rampant speculation going on in
the media, on the blogosphere, and in po-
litical circles that Hillary Clinton’s email
server had in 2014 been hacked, and there-
fore the Russians might have those emails.
So drawing the conclusion that this kind
of vague comment related to and showed
preknowledge of the DNC hack and dump,
I think, was a big stretch. But let me just
finalize it, which is from my experience the
normal thing to do in this kind of situation,
and I have had analogous experience here,
is to go to the campaign. And here I don’t
think there’s a legitimate explanation for
why they didn’t, especially because they
went to the Russians.
MR. BAKER: Well, I think in the report it
actually does say that they considered
this, but that there were concerns that it
would be alerting the campaign and if
there was criminal activity they would be
able to shut it down.
MR. BARR: Right. And what the FBI person
www.inovalon.com
said as to why he didn’t is, “We only do NASDAQ: INOV
that if there’s no possibility whatever that
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