For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
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Benedict Option
VOL. CCLXIX NO. 40
What’s
News
World-Wide
rump won’t guarantee
T that his next national
security adviser will have
full control over staffing
and process, a move that is
shortening the list of people
willing to take the job. A1
 The Trump administra-
tion has drafted prelimi-
nary growth forecasts that
rely on far rosier assump-
tions than projections made
by independent agencies. A4
 Border adjustment, a
pillar of the House Repub-
licans’ tax proposal, faces
broad opposition, but there
isn’t a clear alternative. A3
 Pruitt was confirmed as
EPA administrator, kicking
off Trump’s push to roll back
Obama-era regulations. A4
 An extremely potent nar-
cotic, carfentanil, has been
tied to hundreds of over-
dose deaths since 2016. A3
 Mattis delivered a mes-
sage of American reassurance
to Europe as he sought to al-
lay confusion among allies
about Trump’s intentions. A5
Business & Finance
 Kraft Heinz made a $143
billion unsolicited bid for
Unilever, seeking to marry
two of the world’s biggest
packaged-food makers. A1
 Aramco’s IPO is unlikely
to happen until late 2018
amid questions about the
oil firm’s structure and how
to separate its finances
from Saudi Arabia’s. A1
 The Dow notched its
seventh consecutive record
close, inching 4.28 points
higher to 20624.05. B9
 Exxon said as many as 3.6
billion barrels of oil it planned
to pump in Canada is no lon-
ger profitable to extract. B1
 U.K. retail sales fell for
the third straight month,
adding to signs that stirring
inflation since Brexit is
starting to deter shoppers. A5
 The main funds of two
of the largest investment
managers in the online-
loan sector reported the
lowest annual returns
since their inception. B1
Inside Path to Richest IPO Turns Rocky
NOONAN A13
The White
House Needs
An Injection
Of Calm
Notice to Readers
WSJ.com and WSJ mobile
apps will publish through
the weekend. The print
edition won’t appear
Monday, Washington’s
Birthday (or Presidents
Day), but a daily edition is
available in WSJ iPad and
Android apps.
CONTENTS
Books.................... C5-10
Business & Fin.. B2-4
Food......................... D6-7
Heard on Street...B10
Obituaries................. A8
Opinion............... A11-13
s Copyright 2017 Dow Jones &
Company. All Rights Reserved
The
REVIEW
* * * * * * * *
Kraft Makes Surprise Bid for Rival
Unilever rejects offer of
$143 billion as too low;
investors bet suitor will
come back with more
Kraft Heinz Co. made a $143
billion unsolicited bid for An-
glo-Dutch rival Unilever PLC,
seeking to marry two of the
world’s biggest packaged-food
makers and accelerate an in-
dustrywide drive to cut costs
amid slowing sales.
By Saabira Chaudhuri,
Annie Gasparro
and Anne Steele
The cash-and-stock offer
came as a surprise to Unilever,
a person familiar with the mat-
ter said, and was quickly re-
jected Friday. Unilever manage-
ment believed the offer was too
low and that Kraft was merely
taking advantage of the strong
U.S. dollar and the relative
weakness of Unilever shares,
this person said.
Kraft responded that it was
committed “to working to
reach agreement on the terms
of a transaction,” though it said
another offer isn’t certain.
Any deal faces significant
hurdles, even if Unilever man-
agement ultimately comes
around. The companies are big
players in many of the same
markets, so a combination
would draw scrutiny by anti-
trust regulators around the
Fears Grow in Aftermath of Attack on Pakistan Shrine
ASIF HASSAN/AGENCE FRANCE-PRESSE/GETTY IMAGES
ANGUISH: Devotees gather outside a Sufi Muslim shrine in southern Pakistan on Friday, a day after a
bombing there claimed by Islamic State killed 88 people. Security forces carried out country-wide raids. A8
Complications in restructur-
ing Saudi Arabia’s state-owned
oil company and disentangling
its finances from those of the
government are slowing the
march toward what is expected
to be the biggest initial public
offering in history.
The hotly anticipated listing
of a minority stake in Saudi Ara-
bian Oil Co., the kingdom’s cor-
porate crown jewel, is now un-
likely to happen until late 2018
The Pajama-Clad Bitmoji and the ‘Creepy Boss’
Cartoon-message fad tests office etiquette; ‘I embarrassed myself’
BY SARAH E. NEEDLEMAN
Sports....................... A10 Corey Blake was texting with
Style & Fashion D2-3
Travel...................... D8-9 several of his branding firm’s
U.S. News............ A2-4 employees when he decided to
Weather.................. A10 wish them a good night’s sleep
Wknd Investor....... B7
World News....... A5-7
ahead of a leadership retreat
the next day in Cleveland.
Rather than peck out a final
> message, the 42-year-old chief
executive sent a cartoon image
of himself lifting sheets on a
bed with a teddy bear in it.
“Sleep Well,” the drawing’s
caption bade.
“Creepy boss is going to sit
women’s st yle
WSJ. MAGAZINE
WEEKEND HHHH $4.00
SATURDAY/SUNDAY, FEBRUARY 18 - 19, 2017 WSJ.com
Grocery Shopping
Unilever and Kraft Heinz have added scores of brands over the decades.
Dollar Shave Club
bought by Unilever
for $1 billion
Unilever sells its Italian
Unilever
established 1930
Slim-Fast Foods frozen food business to
Permira's Birds Eye Iglo
Alberto Culver
bought by Unilever Wish-Bone and Ragu and
Toblerlone for $3.7 billion Western dressings Bertolli pasta
Ben &
and Milka Jerry’s brands sold sauces sold Kraft Heinz
added Heinz
offers to buy
Unilever
Kraft takes the largely U.S.
General Foods grocery brands like Oscar Mayer,
(Oscar Mayer) Best Foods Inc. bought by Planters, Velveeta, Jell-O, etc.
Unilever for $20.3 billion
Philip Morris
purchases Mondelez keeps
Kraft cookies and crackers (Oreos
Nabisco (Oreos, Cadbury bought by Kraft
and Wheat Thins), Cadbury
Chips Ahoy and for around $19 billion
Kraft cheese Planters nuts)
chocolate and Trident gum
born 1903
bought for around
$19.2 billion
Pre-1988 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016
Market share, as a percentage of sales value for 2016
5%
4
3
2
1
0
North America Australasia Western Europe Latin America Asia Pacific Eastern Europe Middle East/Africa World
Sources: staff reports (timeline); Euromonitor (market share)
THE WALL STREET JOURNAL.
world. It also could face politi- PLC’s $172 billion acquisition of amd Dove skincare products.
cal hurdles in the U.K. and the Mannesmann in 1999, accord- A deal with Unilever also Big Appetite
Netherlands, where Unilever ing to Dealogic. It would com- would accelerate Kraft Heinz’s  3G and Berkshire follow
has dual headquarters. bine the No. 4 and No. 5 play- effort to expand in emerging familiar playbook............... A9
If Kraft were to overcome ers in the global, packaged- markets, where Unilever gener-  Bid faces two sides of
these obstacles, the deal would food industry, bringing under ates about 60% of its sales. regulatory coin.................... A9
rank as the second-largest one roof grocery-store staples About 70% of Kraft Heinz’s  Heard on the Street: Can
cross-border transaction on re- such as Heinz ketchup, Velveeta sales come from the U.S. Kraft afford Unilever?... B10
cord, behind Vodafone Group cheese, Ben & Jerry’s ice cream Please see KRAFT page A9
Trump, Candidates
For Security Chief
Spar Over Staffing
President Donald Trump continue his search through
won’t guarantee that his next the weekend, possibly by
national security adviser will meeting candidates at Mar-a-
have full control over staffing Lago, his Florida home and
and process, a move that is golf resort, according to a se-
shortening the list of people nior administration official.
The president traveled to
By Julian E. Barnes, South Carolina on Friday with
Shane Harris acting national security ad-
and Paul Sonne viser Keith Kellogg, a retired
three-star Army general who
willing to take the job at a tu- served as Mr. Flynn’s chief of
multuous moment for the new staff. Mr. Trump began the day
administration, people familiar by confirming Mr. Kellogg was
with the matter said. in the running to succeed his
Retired Vice Adm. Bob Har- former boss.
ward and retired Gen. David “General Keith Kellogg, who
Petraeus have dropped out of I have known for a long time,
consideration for the critical is very much in play for NSA—
post, which became vacant as are three others,” Mr.
with Monday’s firing of Mi- Trump wrote in a tweet Friday
chael Flynn, these people said. morning.
Both candidates have cited
concerns about staffing and in-
dependence, the people said.
Please see TRUMP page A4
 Trump’s growth forecasts
Mr. Trump is planning to draw scrutiny............................. A4
prince first said early last year
By Summer Said in that the IPO would happen in
Dubai, Maureen 2017 or 2018. More recently,
Farrell in New York
and Justin Scheck in
London
Saudi officials have said 2018
would be the year. The IPO is
THE MYSTERY OF
at the earliest, and if foreign ad-
expected to generate $100 bil-
lion or more in proceeds.
The difficulty of quickly
KIM JONG NAM
visers have their way, wouldn’t turning a behemoth that func-
happen until 2019, according to Please see OIL page A2
more than a half-dozen people Friends say Kim Jong Un’s high-living half-
involved in the process.  Gasoline glut emerges as
The country’s deputy crown drivers tap brakes................ B10 brother felt ‘sorry’ for North Korea’s people
It was over in about 15 Kim, 45 years old, harbored
seconds. Two women ap-
proached Kim Jong Nam, the
ambitions to return to North
Korea or had encouraged the
i i i half-brother of North Korea’s overthrow of the current re-
dictator, on Monday at Kuala gime.
Lumpur International Air- Yet North Korean propa-
ganda emphasizes that the
on your bedside and an app from Bitstrips By Alastair Gale in Kim family are the country’s
tuck you in at night…” a Inc., people craft avatars Tokyo, Jonathan only legitimate rulers. Mr.
staffer gleefully fired of themselves—hair- Kim could never escape the
Cheng in Seoul and
back. styles, body types, Dan Strumpf in Macau assumption by many outsid-
“Oh my gosh,” a clothing—that the app ers that if his half-brother’s
Texas-based colleague plops into quirky scenes. port, and one touched his dictatorship was deposed, he
chimed in. “Maybe I’ll After winning over face with a wet cloth. Air- could be tapped to lead a
stay in Dallas.” teens and young adults port surveillance video transition to a free, demo-
Mr. Blake blamed the on mobile devices, bit- showed one of the alleged cratic North Korea.
faux pas on his affinity mojis are seeping into killers wearing a shirt that Since he took power at
for digital cartoons Corey Blake corporate emails, mes- said “LOL.” the end of 2011, South Ko-
called bitmojis. saging apps and texts. Malaysia’s investigation rean authorities estimate
For the uninitiated: Bitmojis Now, eager and befuddled into the murder continued Please see ATTACK page A7
are personalized cartoon im- workers are figuring out how to Friday, with no evidence to
ages that can be pasted into use the social tool without implicate Kim Jong Un.  Tillerson urges China to act
text messages and emails. Using Please see BITMOJI page A9 There are no signs that Mr. on North Korea......................... A7
 For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
A2 | Saturday/Sunday, February 18 - 19, 2017
In Attention, Do Goldfish Really Beat Humans?
A
ttention, everyone—
you need to focus.
And, frankly, it
shouldn’t be difficult.
Popular accounts claiming
the average person’s atten-
tion span has dwindled to 8
seconds—shorter, suppos-
edly, than a
goldfish—
aren’t corrobo-
rated by sci-
ence.
The features
THE of human atten-
NUMBERS tion are too
JO CRAVEN complex to re-
MCGINTY duce to a span
of time, and the
metrics scien-
tists do track haven’t changed
in generations.
“I’ve been measuring col-
lege students for the past 20
years,” said Edward Vogel, a
professor of psychology and
neuroscience at the University
of Chicago. “It’s been remark-
ably stable across decades.”
His findings echo those of
other experts, including Mi-
chael Posner, a psychologist
known for identifying the
brain networks underlying
attention, and Marcus Ra-
ichle, a neurologist and au-
thority on brain metabolism.
They say the ability of
healthy adults to pay atten-
tion hasn’t diminished.
“There is no real evidence
California Storm Delivers a Crushing Blow
ASSOCIATED PRESS
BAD FALL: A toppled tree damaged vehicles in the city of Goleta on Friday as wind-driven heavy rains blew into Southern California.
OIL
Continued from Page One
tions largely to support the
Saudi budget into a company
accountable to shareholders
has crystallized over the past
couple of months.
While some Saudi officials
are pushing for a fast IPO, oth-
ers are more focused on fol-
lowing advice of bankers to get
a structure in place that would
convince shareholders that
Aramco is more akin to valu-
able oil companies such as
Exxon Mobil Corp. or Royal
Dutch Shell PLC than it is to
other state-owned oil compa-
nies that tend to carry a lower
valuation. The prince has said
the company could be valued
at more than $2 trillion when
it is listed.
Basic elements of Aramco’s
governance, structure and fi-
nancial disclosures remain un-
resolved. Aramco and the gov-
ernment need to determine
how to account for various
subsidies and how the newly
public company would pay
taxes, according to several of
the people familiar with the
matter. Some foreign and do-
mestic advisers say the fi-
nances of Aramco and the
Saudi government are so en-
meshed it would take many
months to untangle them.
For example, Saudi Arabia’s
leadership hasn’t decided how
much of Aramco’s profit would
fund government operations
and payments to the royal
court, three of these people say.
About 90% of Aramco’s
profit now goes to the Saudi
government and members of
the royal family, say five peo-
ple familiar with the finances.
that it’s changed since it was
first reported in the late
1800s,” Dr. Posner said.
Yet it has been widely re-
ported that our focus has
slipped.
The idea may have caught
fire because it sounds believ-
able. Distractions abound in
today’s device-dependent
culture, and diagnoses of at-
tention deficit disorder have
increased—which may be a
bit of a red herring, accord-
ing to one expert.
“More people are not suf-
fering from ADHD as best as
we can tell,” said Russell A.
Barkley, a clinical psycholo-
gist who tracks the latest
scientific information on the
disorder. “More are just be-
ing identified and treated.”
The fishy statistics took
off after a division of Micro-
soft published a 52-page re-
port in 2015 that said the av-
erage human attention span
had dropped from 12 to eight
seconds in just over a de-
cade. The report also offered
this disturbing comparison:
The average attention span
of a goldfish, at nine sec-
onds, was one second longer
than the typical human.
“This report got picked up
hundreds of times,” said
Kirsten Adam, a doctoral
student in psychology at the
University of Chicago who
The rest, they say, gets rein-
vested in the company.
Spokesmen for Aramco and
the Saudi government declined
to comment for this article.
To advise on issues like oil-
reserves accounting, financial
disclosure and how to disen-
tangle Aramco’s finances from
those of the kingdom, the gov-
ernment and Aramco have
brought in a host of foreign
advisers, including banks; ac-
counting firms Pricewater-
houseCoopers LLP and Ernst &
Young LLP; and law firms,
among others, say people fa-
miliar with the matter.
An Ernst & Young spokes-
woman and a PwC spokes-
woman declined to comment.
While advisers are weighing
in, Deputy Crown Prince Mo-
hammed bin Salman has got-
ten personally involved in the
The Manhattan U.S. attor-
ney’s office, which is investigat-
ing whether 21st Century Fox
Inc. failed to sufficiently dis-
close to investors settlement
payments related to sexual-ha-
rassment claims against former
Fox News Chairman and Chief
Executive Roger Ailes, began its
investigation after learning of a
probe by law firm Paul, Weiss,
Rifkind, Wharton & Garrison
LLP into harassment allegations
against Mr. Ailes. A Business
News article on Thursday about
the investigation incorrectly
said the U.S. attorney’s office
reviewed a report compiled by
Paul Weiss. It also incorrectly
summarized the law firm’s
findings to say that Fox News
Readers can alert The Wall Street Journal to any errors in news articles by emailing wsjcontact@wsj.com or by calling 888-410-2667.
U.S. NEWS
Tuned In
One test used to measure attention involves briefly showing
respondents pairs of colored squares in succession and asking
whether they match. The average adult can accurately compare sets
of three, but most cannot reliably compare sets of six.
180 individuals
160
140
120
100
80
60
40
20
0 tion span as being a specific
0–0.5 0.5–1 1–1.5 1.5–2 2–2.5 2.5– 3 3–3.5 3.5–4 4–4.5 4.5–5 5 & up
Number of color boxes guessed correctly
Note: Data was collected from a representative sample of healthy young adults ages 18 to 35
at the University of Oregon from 2012-2015.
Source: University of Oregon
studies working memory.
“This seemed like a made-up
statistic. Where did this
come from?”
T
he Microsoft report
credits “Statistic
Brain” as the source of
the numbers, and the figures
are published on that com-
pany’s website. But it attri-
butes the information to still
IPO planning, say six people
familiar with the matter. The
IPO is part of his plan to wean
Saudi Arabia’s economy off its
dependence on oil.
The prince declined to com-
ment via the Saudi govern-
About 90% of Aramco
profit now goes to the
Saudi government
and royal family.
ment spokesman.
Taking Aramco public is the
first big step in a project that,
Prince Mohammed has said,
would put IPO proceeds and
much of Aramco’s stock into a
giant sovereign-wealth fund.
CORRECTIONS  AMPLIFICATIONS
had set aside a pool of money
for payments to sexual-harass-
ment claimants but described
the fund under another name.
The article also incorrectly said
the U.S. attorney’s investigation
could focus on whether 21st
Century Fox mischaracterized
the funds used for settlements.
The State Department or-
dered its embassies abroad to
delay booking travel after
March 3 for refugees reset-
tling in the U.S. A U.S. News
article on Friday about Presi-
dent Donald Trump’s plans to
issue a new immigration order
incorrectly said the State De-
partment ordered embassies
to suspend refugee resettle-
THE WALL STREET JOURNAL.
other sources.
The most concrete is a
scientific paper about how
people use web browsers. It
isn’t a study of attention
span, but it may provide a
clue to the origin of one of
the numbers.
“It’s a 2008 study of a
sample of 25 people and how
long they stayed on a web-
page,” Ms. Adam said. “The
That fund would then sink tens
of billions of dollars into inter-
national and domestic compa-
nies outside the oil industry.
Late last year, Prince Mo-
hammed dispatched helicop-
ters near an Aramco oil field in
Saudi Arabia’s eastern prov-
ince, near Aramco headquar-
ters, and told staff to set up
camp. The prince moved into
the camp for about a week last
month, say two people familiar
with the matter, and while he
was there, he met with some
government officials including
Aramco’s chairman, according
to one of those people.
Prince Mohammed also met
dignitaries including former
British Prime Minister Tony
Blair. A spokeswoman for Mr.
Blair declined to comment.
Prince Mohammed last
month received a report from
ment after March 3.
J.P. Morgan Chase paid a fi-
nal price of about $10 a share
to purchase Bear Stearns after
originally agreeing to pay $2 a
share. A Mansion article on
Friday about former Bear
Stearns Co-President Warren
Spector’s townhouse didn’t
give the final price per share.
Contributions to a stu-
dent’s 529 college-plan ac-
count are generally reported
under gift-tax rules when they
exceed $14,000 during the
year (or $28,000 for a couple),
but the gift tax itself won’t
necessarily have to be paid. A
Feb. 4 Weekend Investor arti-
* *** THE WALL STREET JOURNAL.
average was for 12 seconds.”
The National Center for
Biotechnology Information
and the U.S. National Library
of Medicine are also listed as
sources, but Ron Gordner, a
senior researcher at the li-
brary, could find no reference
to the statistics in either of
the organizations’ publica-
tions. The Associated Press is
listed, but it couldn’t locate
an article with the numbers.
Statistic Brain didn’t re-
spond to requests for its
source material, but accord-
ing to Dr. Vogel, no pub-
lished peer-reviewed scien-
tific studies quantify the
ability to pay attention the
way the website does.
“The concept of an atten-
maximal duration of time is
not a known valid measure,”
he said. “Such a time mea-
sure would vary so much
from context to context that
it would be fairly useless as
a metric of ability.”
In her efforts to track
down the information, Ms.
Adam also checked the sci-
entific literature for goldfish
studies. “A few papers came
up,” she said, “and none re-
motely try to measure atten-
tion span in goldfish.”
As far as science is con-
cerned, “attention span” is a
colloquial term that encom-
U.S. WATCH
IMMIGRATION
Seattle Case Is Test
Of ‘Dreamer’ Policy
A Mexican immigrant who is
a beneficiary of the Obama ad-
ministration program known as
DACA will remain in detention
until an immigration judge hears
his case as early as next week, a
federal judge in Seattle ruled Fri-
day.
Civil-rights attorneys filed suit
earlier this week calling 23-year-
old Daniel Ramirez Medina’s Feb.
10 arrest unconstitutional. Until
the case is heard by an immigra-
tion judge, Mr. Ramirez will re-
main in detention.
The case is considered an
early test of how the Trump ad-
ministration will treat “Dream-
ers,” or recipients of Deferred
Action for Childhood Arrivals,
which protects eligible young un-
documented adults from depor-
tation and gives them work au-
thorization. Mr. Ramirez arrived
in the U.S. when he was 7 and
is the father of a 3-year-old boy.
U.S. Immigration and Customs
Enforcement agents have said
Mr. Ramirez is a gang member,
which his attorneys deny.
—Alejandro Lazo
Aramco executives containing
financial information, includ-
ing material on the number of
shares that might be offered
and potential exchanges for
the IPO, say two people famil-
iar with the matter.
That report is intended to
be the basis for an IPO pro-
spectus, the people said. But
company officials and advisers
want to keep it private until
Aramco’s tax treatment is re-
solved, so would-be sharehold-
ers get a clear picture of the
company as separate from the
government, they said.
Aramco and the government
are also weighing how to han-
dle vast subsidies on Aramco’s
books, including natural gas
that it sells at a loss to govern-
ment-owned power plants,
three people familiar with the
matter said. Keeping such sub-
cle about grandparents and
gifting didn’t make clear the
implications of gifts exceeding
those thresholds.
R&B artist SZA’s full-length
debut, CTRL, is slated for a
March release. An article about
the performer in the March
Women’s Style issue of WSJ.
Magazine incorrectly said
CTRL was released in February.
Didier Malige did the hair-
styling and Petros Petrohilos
did the makeup for the “Rare
Gem” fashion article in the
March Women’s Style issue of
WSJ. Magazine. Their names
were incorrectly reversed in
the credits for the article.
passes several functions, in-
cluding sustained, select and
alternating attention.
The first captures the
ability to focus on something
for an extended period. The
second describes the capac-
ity to filter out distractions.
And the third assesses the
ability to switch from one
task to another.
R
esearchers use a num-
ber of behavioral tests
to measure the traits.
One involves briefly showing
someone colored squares in
succession and asking if they
match.
“If there is one color, red,
and you take it away and then
show blue, as long as some-
one has good color vision,
they will say, yeah, that’s dif-
ferent,” Dr. Vogel said.
The average adult can accu-
rately compare sets of three,
but most cannot reliably com-
pare sets of six. The results of
this and other tests of atten-
tion are important because
they predict academic success.
“Just that 10-minute
color-memorization task pre-
dicts how well someone will
do on the GRE, the SAT or
other high-level tasks,” Dr.
Vogel said.
And if you’ve read this far,
you have presumably outper-
formed the average goldfish.
REAL ESTATE
Airbnb Helps Tenants
Breach Leases: Suit
One of the largest U.S. apart-
ment landlords has filed civil
lawsuits in California and Florida
against short-term rental web-
site Airbnb Inc., alleging its ten-
ants are renting out units on the
site in violation of their leases
and are creating unsafe condi-
tions for other tenants.
Apartment Investment &
Management Co., which owns or
manages roughly 50,000 apart-
ments, is seeking an undeter-
mined amount of damages, a
spokeswoman said. AIMCO Chief
Executive Terry Considine said in
a statement that Airbnb is help-
ing tenants breach their leases,
which prohibit short-term rent-
als. AIMCO said its buildings
have suffered property damage,
nuisance and disturbance, and
loss of revenue.
Airbnb plans to fight the law-
suit, said Nick Papas, a spokes-
man for the company. “This at-
tack on the middle class by
powerful interests is wholly
without merit,” he said.
—Laura Kusisto
and Greg Bensinger
sidies on the books could repel
would-be IPO investors.
The IPO process isn’t the
first time Aramco has tried to
become more like a Western
oil company. For years, it has
hired senior executives from
international companies, and
consultants to help train Sau-
dis in American and European
management practices. Those
efforts have clashed with pri-
orities like increasing the pro-
portion of Saudi employees.
Aramco officials and advis-
ers are still pushing to do the
IPO as quickly as feasible. Re-
cently, Aramco hired boutique
bank Moelis & Co. for advice
and has been soliciting pro-
posals from bigger banks to
underwrite it. The underwrit-
ers could become public in
coming weeks, people familiar
with the process said.
THE WALL STREET JOURNAL
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(Eastern Edition ISSN 0099-9660)
(Central Edition ISSN 1092-0935)
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THE WALL STREET JOURNAL.
Alternative
To House
Tax Plan
Unclear
BY RICHARD RUBIN
WASHINGTON—An uncom-
fortable question looms over
the tax debate in Congress:
What’s plan B?
Border adjustment, a pillar of
House Republicans’ tax pro-
posal, is taking a beating. Big
retailers are lobbying aggres-
sively against the concept,
which would tax imports and
exempt exports. Senate Republi-
cans have expressed views rang-
ing from skepticism to hostility.
Even some House Ways and
Means Republicans are wary.
Just three GOP senators
could kill the House tax plan,
more than that already oppose
border adjustment. Despite that
daunting math, border adjust-
ment isn’t dead, and that is
partly because Republicans ha-
ven’t developed palatable alter-
natives that avoid huge budget
deficits or prevent the corporate
tax base from fleeing abroad.
Rep. Kevin Brady (R., Texas),
the plan’s chief architect, on
Thursday said border adjust-
ment is essential to overhaul-
ing the tax code and encourag-
ing investment in the U.S.
“Without that, our tax code
tells companies, go somewhere
else, leave America,” Mr. Brady
said. “The result will be likely
higher tax rates for job creators
from the smallest to the largest.”
In Mr. Brady’s plan, border
adjustment serves two purposes
that can’t be easily replicated,
experts say. First, it would raise
an estimated $1 trillion over a
decade to help pay for cutting
One option would be
to cut taxes and
worry less about
budget deficits.
the corporate tax rate to 20%
from 35%. Second, border ad-
justment reshapes the U.S. tax
base around domestic consump-
tion, making it harder for com-
panies to escape U.S. taxes by
putting their manufacturing, in-
tellectual property or headquar-
ters outside the country. Any
plausible plan B must grapple
with those two challenges.
“It would be kind of like
ripping the page off and start-
ing the essay all over again,”
said Ray Beeman, a former
House GOP tax aide now at
Ernst & Young LLP.
One alternative would revive
legislation that Dave Camp,
then chairman of the Ways and
Means Committee, proposed in
2014. That plan featured a 25%
corporate rate, but it forced
companies into longer depreci-
ation schedules, included a
bank tax and drew opposition
from Republicans and multina-
tional corporations. Mr. Camp’s
plan gave Mr. Brady and House
Speaker Paul Ryan of Wiscon-
sin the path to border adjust-
ment—as a way to cut rates
without the painful trade-offs
that bedeviled Mr. Camp’s pro-
posal.
Another option would be to
cut taxes and worry less about
budget deficits. Messrs. Brady
and Ryan say their goal is to
craft a proposal that wouldn’t
increase the budget deficit—af-
ter assuming economic growth
and excluding the costs of re-
pealing Affordable Care Act
taxes. They haven’t produced a
full bill or estimates showing
how their math adds up.
Deep tax cuts face tougher
Senate procedural hurdles that
would likely require them to
expire after 10 years.
Sen. David Perdue (R., Ga.),
a former retail executive, said
lawmakers should scrap bor-
der adjustment, focusing on
lower tax rates and counting
on economic growth to make
up revenue shortfalls.
“Trust the free-enterprise
system. Get this tax structure
simplified, competitive with the
rest of the world and then watch
this economy grow,” he said.
But Senate Republicans ha-
ven’t coalesced behind a plan.
“What I want to do is succeed.
And success means 51 votes in
the Senate and a presidential
signature over something that
makes America more competi-
tive,” Majority Leader Mitch
McConnell (R., Ky.) said in an
interview this past week.
—Siobhan Hughes
contributed to this article.
* * * * Saturday/Sunday, February 18 - 19, 2017 | A3
U.S. NEWS
SPACEX/NASA/ZUMA PRESS
Launch pad 39A at NASA's Kennedy Space Center will be back in use when SpaceX sends a Falcon 9 rocket to the international space station on Saturday.
Space Coast Set for Jobs Liftoff
SpaceX launch marks bringing in $1.4 billion in capi-
Re-Launching an Aerospace Arena
ing Florida’s Space Coast, a 65-
tal investment and generating mile stretch along the state’s
Florida region’s rebirth an estimated 7,900 jobs. That After the end of the NASA shuttle program, Florida’s Space Coast is central Atlantic coast encom-
as a more diverse includes 1,800 new jobs an- being rejuvenated by new ventures. A look at some of the recent passing Kennedy Space Center
nounced by Northrop Grumman activity by space firms: and Cape Canaveral Air Force
aerospace economy Corp., which landed a Pentagon Station. Among them: the
1. SpaceX: A Falcon 9 is scheduled to
contract in 2015 to build long- launch from Launch pad 39A. area’s proximity to the equator,
BY ARIAN CAMPO-FLORES range bombers. DETAIL which allows more weight to be
“The Space Coast is kind of 2. Boeing: NASA Starliner project, aimed launched per load; its existing
FLO R IDA at transporting crew to space station.
KENNEDY SPACE CENTER, on fire right now,” said Greg launch infrastructure; and a
Fla.—Launch pad 39A hasn’t Wyler, founder of OneWeb Ltd., NASA shuttle 3. SpaceX: Refurbishing of Launch well-trained workforce.
hosted a liftoff since July 2011 which aims to use hundreds of landing facility Complex 40, site of a Falcon 9 explosion. The Space Coast “could re-
when orbiter Atlantis’ final satellites to provide internet 4. OneWeb: Facility to assemble compact ally be the nexus of this new
flight marked the end of access in rural and emerging satellites expected to break ground soon. commercial space enterprise,”
1
NASA’s space shuttle program, markets. Titusville
Mr. Henderson said.
5. Lockheed Martin: NASA Orion project,
a painful moment for the re- In a venture with an Airbus Kennedy 2 aimed at sending crew into deep space.
But commercial space com-
Space 3
gion that resulted in the loss of SE division, OneWeb plans to panies tend to be lean and
9,000 jobs. break ground soon on a high- Center 6. Blue Origin: Facility under construction aren’t likely to generate as
4 5 Cape
As soon as Saturday, the tech manufacturing facility at 6 Canaveral to build New Glenn rocket. many jobs as NASA’s shuttle
launch pad will be back in use Exploration Park, which bor- AFS 7 program, said Ramon Lugo, di-
7. Blue Origin: Launch Complex 36, from
but not under the auspices of ders the space center and is 8 where the New Glenn will launch. rector of the Florida Space In-
the National Aeronautics and managed by Space Florida, the stitute at the University of Cen-
Space Administration. It has state’s aerospace development
8. Moon Express: Plans to build
tral Florida. The region also
spacecraft to travel to the lunar surface
been refurbished by commer- authority. The facility, expected Cocoa at site of an old Delta launch pad. faces competition.
cial launch company Space Ex- to employ 250 people, is de- Even so, the revival has
ploration Technologies Corp., signed to crank out three satel- Sources: Kennedy Space Center; Space Florida THE WALL STREET JOURNAL. helped lower the unemploy-
or SpaceX, which will send a lites a day when it opens next ment rate in Brevard County,
Falcon 9 rocket ferrying an un- year. zilian aircraft maker Embraer ties.” home to the Space Coast, to
manned Dragon capsule to the Commercial space compa- SA, which employs 650 people For SpaceX, two major acci- 4.9% in December from 11.2% in
international space station. nies like SpaceX, founded by in the area. dents have done little to slow July 2011.
The pad’s rebirth illustrates billionaire entrepreneur Elon One of them is Brian Ham- the pace of development. Of the more than 9,000 aero-
the economic rebound of Flor- Musk, and Blue Origin, started mer, who used to work for a Construction crews are busy space workers laid off as a re-
ida’s Space Coast as it transi- by Amazon.com Chairman Jeff NASA contractor on the shuttle building a 750,000-square-foot sult of the shuttle program’s
tions to a more diverse aero- Bezos, are setting up facilities. program and got a layoff notice Blue Origin facility where the end, nearly 5,400 were em-
space economy with a Smaller startups such as Moon in 2012. He landed a job later company will manufacture its ployed at the end of 2014, ac-
significant commercial sector, Express Inc., which plans to that year at Embraer, which New Glenn rocket, a reusable cording to CareerSource Bre-
from one powered by govern- send a tiny spacecraft to the lu- was expanding in Melbourne, booster aimed at sending astro- vard, which helped retrain and
ment investment dating back to nar surface later this year, also Fla., with the creation of an en- nauts and satellites into low- place them. Around one-fifth of
the Kennedy administration. are making investments. And a gineering support center. Earth orbit. those laid off ended up retiring,
In the past six years, the host of others are expanding “We’re not done growing here,” Blue Origin executive Scott and another large portion
area’s economic development operations and hiring engineers he said. “It’s really exciting, Henderson said the company moved elsewhere for employ-
agency has announced projects and technicians, including Bra- with all these new opportuni- had several reasons for choos- ment, the agency said.
Powerful New Narcotic Intensifies Opioid Crisis
BY JON KAMP
AND ARIAN CAMPO-FLORES China Moves to Curb 2015, the influx of some of
them abated, DEA spokesman
In a worrisome sign for the Carfentanil Output Russell Baer said. Alpha-PVP, a
U.S. opioid crisis, a synthetic stimulant often known as
narcotic with terrifying po- Action comes as U.S. “flakka” that triggered a spate
tency has been tied to hun- identifies country as major of overdose deaths in South
dreds of overdose deaths since source of bootleg opioids Florida earlier that year, “virtu-
it first emerged in Ohio in ally went away,” Mr. Baer said.
mid-2016. Yet fentanyl, which has long
Authorities have connected A crackdown by China on been designated a controlled
the drug, carfentanil, to at production of carfentanil comes substance in China, continues
least 700 fatalities in states amid pressure from U.S. au- to stream into the U.S. in large
including Ohio, Michigan and thorities, who have identified quantities, in part because
Florida, according to data the country as a major source Mexican cartels are producing
compiled by The Wall Street of bootleg, laboratory-made it and shipping it north, Mr.
Journal from county medical versions of opioids including Baer said.
examiners and NMS Labs, a carfentanil that have made The Chinese action to add
private laboratory outside their way into the U.S. carfentanil and three other re-
Philadelphia that performs During a visit to China in lated drugs to a list of con-
toxicology testing for counties January, DEA Administrator trolled substances, effective
around the U.S. Chuck Rosenberg pressed au- March 1, aims to close a loop-
DRUG ENFORCEMENT ADMINISTRATION
As of early November, the thorities there for more rigor- hole. While fentanyl is con-
Drug Enforcement Administra- ous controls of synthetic opi- trolled in China, similar com-
tion had received notice of 411 oids, stressing the gravity of pounds have been more loosely
drug seizures containing car- the public-health crisis in regulated and were easier for
fentanil from around the U.S. America. labs there to export. That con-
that were analyzed by federal, The DEA has worked with tributed to China becoming a
state and local labs. The China in the past to try to curb factory for some synthetic opi-
agency has confirmed seizures flows of illicit drugs into the oids.
of the drug in at least 10 U.S. After China added controls —Arian Campo-Flores
states, mainly in the Midwest, on 116 chemicals in October and Brian Spegele
Appalachia and the South. Carfentanil has been connected to at least 700 fatalities.
Carfentanil is a particular
concern because of its extreme an airborne powder, law-en- ing users, the DEA says. Profit a rash of about 175 overdoses land, said Lisa Kohler, the
potency: It is up to 100 times forcement personnel face sig- is a likely motive since dealers hit the Cincinnati area in just county medical examiner.
more powerful than fentanyl, nificant peril in investigating can convert a small shipment one week last August, many In September, the DEA is-
the narcotic blamed for wors- scenes where it may be pres- of carfentanil into a large due to carfentanil. sued a nationwide warning to
ening the opioid crisis in re- ent. Users who overdose on it amount of retail product. “I was getting panicked police and the public about
cent years. Carfentanil—the usually require an especially Authorities first detected phone calls from EMS and po- the drug. “Carfentanil is sur-
legal version is intended to se- large amount of naloxone, an carfentanil in Ohio last sum- lice,” she said, as emergency facing in more and more com-
date large animals, like ele- overdose-reversal drug carried mer. It hit Akron on the July medical services personnel munities,” DEA Administrator
phants—is also about 10,000 by many first responders. Fourth weekend, according to and officers responded to one Chuck Rosenberg said. “It is
times as powerful as mor- Several self-described opi- local authorities. First re- overdose after another. crazy dangerous.”
phine, according to the DEA. oid users have told the Journal sponders rushed 15 overdose The medical examiner’s of- The following month,
There were over 33,000 fa- they wouldn’t intentionally victims through the doors of fice in Summit County, which health authorities in Michigan
tal opioid overdoses in the take carfentanil and that it Cleveland Clinic Akron General includes Akron, has counted at issued a warning about the
U.S. in 2015, according to the strikes fear in the drug com- hospital during a single eight- least 133 cases in which people drug. The state hasn’t tallied
Centers for Disease Control munity. One called it a “mur- hour shift, an unusually high died with carfentanil in their carfentanil overdoses yet, but
and Prevention. der weapon” because it is so number, said Nicholas systems. The drug was so un- NMS Labs, which works with
Even a minute trace of car- powerful. Jouriles, chairman of the usual when it first arrived that some of the largest counties in
fentanil can be deadly. Because Dealers often mix carfenta- emergency department there. the county had to get a refer- Michigan, has counted 170
it can be absorbed through the nil with heroin and other opi- Lakshmi Sammarco, the ence sample—used to validate cases there, said Donna Pap-
skin or accidentally inhaled as oids and sell it to unsuspect- Hamilton County coroner, said tests—from a zoo in Cleve- sun, an NMS toxicologist.
 For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
A4 | Saturday/Sunday, February 18 - 19, 2017
Trump’s Growth Forecasts Draw Scrutiny
BY NICK TIMIRAOS
WASHINGTON—The Trump
administration has drafted pre-
liminary economic growth
forecasts that rely on far rosier
assumptions than projections
made by independent agencies
and most private forecasters,
according to several people fa-
miliar with the administra-
tion’s budget planning.
While it isn’t unusual for an
incoming administration to
present an optimistic outlook
for the economy as it plans a
budget, these forecasts deviate
from consensus Federal Re-
serve and private growth esti-
mates by more than a percent-
age point, a particularly large
disparity.
Instead of following the
usual protocol of working from
growth projections from career
staff at the Council of Eco-
nomic Advisers, which over-
sees forecasting and other
modeling, and using that as a
baseline for a budget, Presi-
dent Donald Trump’s adminis-
tration presented its own
growth targets, these people
said. It then asked staff to
work backward to come up
with other projections, they
said.
The growth numbers, com-
puted before Mr. Trump took
office, are now being revised
by administration officials,
these people said, although
they are likely to remain opti-
mistic. One concern is that pro-
ducing aggressive forecasts
might undercut the credibility
ANTHONY BEHAR/CNP/ZUMA PRESS , SGT. SHAWN COOLMAN/U.S. MARINES
Retired Gen. David Petraeus, above, and retired Vice Adm. Bob Harward, below, withdrew from consideration as national security adviser.
TRUMP
Continued from Page One
People familiar with the
process say former United Na-
tions Ambassador John Bolton,
Army strategist Lt. Gen. H.R.
McMaster and former Army
Chief of Staff and retired Gen.
Ray Odierno remained under
consideration.
By late Friday, the search
appeared to be an open race,
with no firm decisions from
Mr. Trump. The choice may
come down to who is willing to
accept the post without over-
hauling the operation that Mr.
Flynn green-lighted before he
was fired for misrepresenting
his December conversations
with the Russian ambassador
to administration officials.
Mr. Trump also is satisfied
with the current staff, the offi-
cial said. For instance, it was
Mr. Trump, not Mr. Flynn, who
picked K.T. McFarland for the
deputy job at the NSC. The
president believes she is doing
a good job and doesn’t think
she should be ousted, the offi-
cial said.
“It is dumb to demand
Flynn’s people go. Why are you
creating embarrassment?” said
the official. “If you make that a
precondition, you are not a
loyal soldier and you don’t de-
serve the job.”
The ranks of the NSC staff
were filling up under Mr.
Flynn. But Trump chief strate-
gist and senior counselor
Steve Bannon also has exer-
cised an unusual level of influ-
ence for a political aide over
the crafting of executive or-
ders and the policy-making
process, said two U.S. officials
who have worked with him.
of top appointees forced to
later defend those numbers if
they don’t materialize.
The deliberations show an
administration wrestling with
competing goals of cutting
taxes, boosting military and in-
frastructure spending, preserv-
ing Medicare and Social Secu-
rity programs and keeping
budget deficits from soaring.
Economic growth forecasts
are presented as part of White
House budget submissions to
Congress and are due out from
the administration in the com-
ing weeks. They have an im-
portant impact on projected
debts and deficits. A fast-grow-
ing economy produces more
revenue while reducing the
need for spending on programs
such as food stamps or unem-
ployment insurance. Fast
growth estimates can thus hold
down projected deficits.
The forecasts project gross
domestic product—a broad
measure of national output of
goods and services—growing
between 3% and 3.5% a year
over the coming decade, with
inflation-adjusted annual
growth ultimately settling at
around 3.2% during the later
years of the 10-year forecast.
The economy has grown
about 2% on average over the
past decade. Many economists
believe sustained growth at
more than 3% will be difficult
without a sharp rebound in pro-
ductivity growth and a reversal
in the slowing expansion of the
U.S. labor force, developments
few are projecting.
Mr. Bannon has also secured
a seat on the council, prompt-
ing criticism from former
members who said a political
operative shouldn’t be part of
national security deliberations.
Adm. Harward, a confidant
of Defense Secretary Jim Mat-
tis, turned down the post on
Gen. Petraeus and
Adm. Harward both
sought more control
over personnel.
Thursday. Currently the chief
executive of Lockheed-Martin
Corp.’s operation in the U.A.E.,
Adm. Harward said in an inter-
view that family and financial
concerns ultimately drove his
decision. He said that the
White House team was very
accommodating to all his pre-
requisites.
But people familiar with the
discussions said that Adm.
P W L C 10 11
Bullish Pulpit
The White House typically has slightly more optimistic growth forecasts
than those from the nonpartisan Congressional Budget Office because
the administration assumes its preferred policies become law.
Projected GDP growth in the coming five years, annual averages
4.5%
4.0
3.5
3.0
2.5
2.0
1.5
1.0
0.5
0 Actual GDP, five-year average
1992– ’95
96 avg. –99
Note: All figures adjusted for inflation; forecasts are based on either the first projections in
the first half of the year, or in December of the previous year.
Sources: Congressional Budget Office (CBO), Office of Management and
Budget (administration); Commerce Department (actual)
The internal Trump projec-
tions are at odds with other as-
sessments of the economy’s
long-run growth prospects. The
Congressional Budget Office, a
nonpartisan agency that pro-
vides analysis to Congress, es-
timates the economy will grow
1.9% annually between 2021
and 2027. The Federal Reserve
forecasts growth of 1.8% over
the long run. While there are
often disparities between the
White House and other agen-
cies on growth projections,
they are rarely this large.
“The president ran a cam-
Harward expressed a prefer-
ence for hiring his own staff
and was rebuffed, with a
wholesale overhaul of the NSC
being viewed by Mr. Trump
and his advisers as too disrup-
tive.
Mr. Petraeus, the former
Central Intelligence Agency di-
rector and a retired four-star
general, said on Friday that
anyone considering the job
should have control over per-
sonnel and gain a commitment
from the White House to have
a disciplined process for craft-
ing security policy.
“Whoever it is that would
agree to take that position cer-
tainly should do so with some
very, very significant assur-
ances that he or she would
have authorities over the per-
sonnel of the organization,
that there would be a commit-
ment to a disciplined process
and procedures,” Mr. Petraeus
said at the Munich Security
Conference.
Administration officials
floated Mr. Petraeus as a pos-
sible successor for Mr. Flynn
12 H T G K B F A M 1 2 3 4 5 6 7 8
U.S. NEWS
 Administration’s
forecast
2000 ’05 ’10
–04 –09 –14
THE WALL STREET JOURNAL.
paign on proposals that would
be incredibly pro-growth,” said
Lindsay Walters, a White
House spokeswoman. “There is
a process in place where the
administration develops an
economic forecast based on its
policies that are included in
the president’s budget. That
budget is still being finalized.”
During the campaign, Mr.
Trump made apparent his low
regard for economists. His ad-
ministration has yet to name
any of the three members to
his Council of Economic Advis-
ers, which oversees forecasting
earlier this week, though it is
unclear how seriously his can-
didacy was viewed.
The White House was
miffed by Mr. Petraeus’s de-
mands to take control of pol-
icy. Administration officials
want someone who is going to
coordinate and limit conflicts
with the agencies on the coun-
cil, not try to take policy-mak-
ing away from them or the
president, said the officials
briefed on the search.
The former CIA director de-
clined to comment on Friday
on whether he would be good
at the job or take it if offered.
An official briefed on the
search said Mr. Petraeus is no
longer being considered be-
cause the White House
thought his demands were un-
reasonable.
Mr. Kellogg has been a
Trump adviser since 2016. Be-
fore becoming acting national
security adviser, he served as
the council’s chief of staff and
executive secretary, a position
responsible for ensuring the
timely and accurate flow of pa-
perwork.
In 2003, Mr. Kellogg served
as the chief operating officer
for the Coalition Provisional
Authority in Iraq. A U.S. offi-
cial who works with Mr. Kel-
logg said he has been a pleas-
ant colleague but hasn’t helped
to right a policy-making pro-
cess that so far has been
plagued by dysfunction and
power rivalries.
Mr. Trump, however, said
on Thursday that the White
House is running like a well-
tuned machine, dismissing re-
ports of dysfunction and chaos
among the staff.
—Carol E. Lee
and Gordon Lubold
contributed to this article.
9 O I X X ******** THE WALL STREET JOURNAL.
and other modeling.
The forecasts were prepared
by Trump transition officials
who met with officials at the
Treasury Department and the
CEA after the election, accord-
ing to five people familiar with
those discussions.
“It is awfully hard to get to
3%. I don’t know where a num-
ber like that would come
from,” said Dale Jorgenson, a
Harvard economics professor
who specializes in such projec-
tions. Mr. Jorgenson’s most re-
cent forecasts show an econ-
 CBO omy growing by 1.8% annually
forecast over the next decade. That is in
part because the labor force is
aging, meaning there are fewer
workers to produce goods and
services, and because the edu-
’15 cational attainment of the
–19 workforce has plateaued,
meaning workforce skills aren’t
advancing. Major policy
changes such as a tax-code
overhaul could boost growth to
2.4%, he said.
Trump officials believe a
regulatory rollback and a tax-
code revamp will unleash
growth that drives a recovery
in productivity, sends business
investment higher and draws
workers back to the labor force.
The higher annual growth
estimates in the initial internal
Trump forecasts would result
in the U.S. economy becoming
17% larger after a decade rela-
tive to recent projections from
the CBO, which produces fore-
casts that assume no changes
to current tax and spending
policies.
Pruitt Confirmed
As Head of the EPA
BY AMY HARDER
WASHINGTON—The Senate
confirmed Scott Pruitt on Fri-
day to be President Donald
Trump’s administrator of the
Environmental Protection
Agency, a move that kicks off
the president’s push to roll
back Obama-era climate and
environmental regulations.
Mr. Pruitt, the Oklahoma at-
torney general who was con-
firmed in a 52-46 vote, faced
opposition from most Demo-
crats, who said the nominee
didn’t sufficiently satisfy their
concerns about his connec-
tions to fossil-fuel companies
in Oklahoma.
One Republican, Sen. Susan
Collins of Maine, voted to op-
pose his nomination. Mr.
Pruitt won the backing of two
Democrats from states with
big fossil-fuel interests: Joe
Manchin of West Virginia and
Heidi Heitkamp of North Da-
kota.
As soon as next week, Mr.
Trump’s administration in-
tends to issue directives scal-
ing back high-profile EPA reg-
ulations, including a rule
cutting carbon emissions from
power plants and another
bringing more bodies of water
under federal jurisdiction, ac-
cording to several people close
to the administration. A White
House spokeswoman declined
to comment on the directives.
Former President Barack
Obama, a Democrat, mounted
an ambitious effort to enact
rules aimed at the environ-
ment, especially climate
change, during his last years
in office. The next few years
Donald Trump’s
First 100 Days
Theadministration’slatest
actionsandagendasataglance
FRIDAY
u Foreign affairs: Defense Sec-
retary Jim Mattis delivered a
message of U.S. reassurance to
Europe, saying that the world
runs better if nations work to-
gether as he attempted to allay
confusion among allies about
President Donald Trump’s inten-
tions overseas. Mr. Mattis
sought to soothe jittery allies,
telling them that the U.S. isn’t
going anywhere and that Amer-
ica’s commitment to the North
Atlantic Treaty Organization is
“ironclad.”
u Boeing: Mr. Trump toured a
Boeing Co. facility in South Car-
olina, saying he would fight for
“every last American job.” He
suggested the U.S. government
could increase its business with
the aerospace company and
The higher growth assump-
tion in the Trump forecast
would show sharply lower defi-
cits as a share of gross domes-
tic product, especially in the
back half of the 10-year fore-
cast window.
Maya MacGuineas, president
of the Committee for a Respon-
sible Federal Budget, a group
that advocates deficit reduc-
tion, said Mr. Trump’s policies
to boost spending on the mili-
tary and to cut taxes are likely
to increase deficits.
“The risk is that rosy eco-
nomic scenarios allow us to bor-
row trillions of additional dol-
lars in the next couple of years,
doing real damage” if growth
doesn’t materialize, she said.
The internal growth projec-
tions struck some people who
saw them as extraordinarily
optimistic because they as-
sumed that inflation would re-
main low and interest rates
wouldn’t increase much beyond
policy makers’ current expecta-
tions despite the big growth
spurt.
One person involved in sev-
eral previous budget processes
said he had never seen career
staff asked to make such aggres-
sive assumptions about eco-
nomic growth as during the new
administration. Several people
involved in past budget deliber-
ations said those discussions
have usually centered on
whether growth would be one
or two-tenths of a percentage
point higher than other esti-
mates, not a full percentage
point.
J. SCOTT APPLEWHITE/ASSOCIATED PRESS
Scott Pruitt will take over an
agency he has sued many times.
are likely to see an all-out war
over how much of that legacy
will be preserved, including
U.S. participation in a land-
mark climate-change accord.
Mr. Trump, a Republican,
has said he doesn’t think cli-
mate change is a real issue,
and Mr. Pruitt has also ques-
tioned the scientific consensus
that human activity is a major
contributor to climate change.
The top concern raised by
Senate Democrats is Mr.
Pruitt’s alleged lack of re-
sponse to requests for some
3,000 emails between him and
fossil-fuel companies, which
Democrats say are likely to re-
veal he would have major con-
flicts of interest.
Thursday, a state judge in
Oklahoma ordered the attor-
ney general’s office to release
the emails by next Tuesday,
prompting Democrats and en-
vironmentalists to say Mr.
Pruitt’s confirmation vote
should be delayed. But the
Senate by then had already
cast a procedural vote to begin
debate, and Republicans de-
clined to delay a final vote.
that his administration was
“getting closer and closer” to a
deal on the successor to Air
Force One.
u Communications: Mike Dubke,
a consultant who has worked in
Republican politics for three de-
cades, is expected to be named
the White House communica-
tions director, a person familiar
with the decision said Friday. The
senior position within the White
House has been unfilled since Mr.
Trump took office.
QUOTES
“Thank you for all of the nice
statements on the Press Con-
ference yesterday. Rush Lim-
baugh said one of greatest ever.
Fake media not happy!”
—Mr. Trump on Twitter
“I’m not a great fan of daily
tweets. … I’ve not been a fan of
the extra discussion that he
likes to engage in, but we’re go-
ing to soldier on.”
—Senate Majority Leader
Mitch McConnell (R., Ky.)
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
THE WALL STREET JOURNAL. * * * * Saturday/Sunday, February 18 - 19, 2017 | A5

Inflation
Cools U.K.
Consumer
Spending
BY WIKTOR SZARY
AND JASON DOUGLAS
LONDON—British retail
sales dipped in January for
the third consecutive month,
adding to signs that stirring
inflation as a result of the
steep fall in the pound since
the Brexit vote is beginning to
deter shoppers.
The slowdown in consumer
spending, the economy’s key
driver, comes at an awkward
time for Prime Minister Theresa
May, who is due to launch di-
vorce talks with the European
Union by the end of March.
U.K. shoppers initially ap-
peared largely unfazed by the
prospect of Britain’s exit from
the bloc, with sales growing
strongly over the summer and
hitting a 14-year annual high in
October. Their resilience under-
pinned a robust economic ex-
pansion: The U.K. economy
grew at the fastest pace in 2016
out of its peers in the Group of
Seven advanced economies.
But retail sales contracted
in January by 0.3% from the
previous month, the Office for
National Statistics said Friday,
dragging the annual rate of
growth down to 1.5%, the
weakest expansion in more
than three years.
Economists said a rising in-
flation rate, combined with
meager wage growth, have
sapped spending. Average
wages after inflation grew by
merely 1.4% in the three
months to December, the slow-
est pace of growth in two years.
Sterling has lost around 15%
against the dollar since the June
referendum, fueling a surge in
inflation: Consumer prices rose
1.8% in January, the fastest rate
of growth in 2 ½ years, and the
Bank of England expects annual
inflation to overshoot its 2%
target within months.
WORLD NEWS
Pentagon Chief Reassures Allies
Mattis reaffirms
cooperation; European
Commission president
objects to military focus
MUNICH—U.S. Defense Sec-
retary Jim Mattis delivered a
message of American reassur-
DANIEL MIHAILESCU/AGENCE FRANCE-PRESSE/GETTY IMAGES, MATTHIAS BALK/ZUMA PRESS
ance to Europe on Friday as he
sought to allay confusion among
allies about President Donald
Trump’s intentions abroad.
“When it comes to security,
no one goes their own way in
this world,” Mr. Mattis said at
By Gordon Lubold,
Julian E. Barnes
and Anton Troianovski
an annual security conference
in the Bavarian capital. “Secu-
rity is always best when pro-
vided by a team.”
Mr. Mattis, a former U.S.
Marine commander in Iraq
and Afghanistan, is on his sec-
ond trip overseas since taking
over at the Pentagon on Jan.
20. He has billed his current
trip through Europe and a pre-
vious one through Asia as “lis- U.S. forces unload equipment at a Romanian air base. Mr. Mattis and German Defense Minister Ursula von der Leyen in Brussels Friday.
tening tours” to hear the con-
cerns of allies and address Mattis has called on European to spend more on defense.
their questions. nations this week to join to- “I am very much against
He is also here to mend gether against those not play- that we allow ourselves to be
fences, saying the world runs ing by international rules. bullied on this,” he said.
better when nations work to- Russia needs to live by in- Mr. Juncker said the U.S. vi-
gether. The divisiveness of the ternational law and behave like sion of security was too nar-
American election and the “mature nations on this planet row, focusing only on military
campaign rhetoric of Mr. do,” the defense chief said might, not on foreign and de-
Trump left many allies, partic- Thursday during a two-day velopment aid. “I don’t like
ularly those in Europe, won- stop in Brussels for a meeting that our American friends—if
dering if the U.S. would main- of NATO defense ministers. they want to stay our
tain its alliances overseas. While providing reassur- friends—reduce the concept of
Mr. Mattis has worked to ances to longtime American security to purely military
soothe jittery allies, telling them allies, Mr. Mattis must also de- matters,” he said.
that America’s commitment to liver a message for the presi- NATO Secretary-General
the North Atlantic Treaty Or- dent, who during last year’s Jens Stoltenberg, a strong sup-
ganization is “ironclad.” campaign called NATO obso- porter of Mr. Trump’s push for
“President Trump came into lete and demanded its mem- members to pay more, pushed
office and has thrown his full bers contribute more to their In remarks Friday to the se- of civilian victims, and this in- back.
support to NATO. He, too, es- collective defense. curity conference in Munich, the cludes that those who need it “It is in the interest of Eu-
pouses NATO’s need to adapt to The U.S. has long wanted German defense minister, Ur- get refuge,” she said. rope to invest more in defense
today’s strategic situation for it each of the alliance’s 28 na- sula von der Leyen, reminded Other European officials to be able to buy the necessary
to remain credible, capable and tions to spend at least 2% of the U.S. that NATO must be have been more pointed this deterrence and preserve the
relevant,” he said. their gross domestic product based on shared values. week. European Commission solidarity within the alliance,”
As worries remain that Mr. on defense. Only five NATO “This never leaves room for President Jean-Claude Juncker he said. “This is not the U.S. de-
Trump’s White House is too members, including the U.S., torture. This commits us to raised questions Thursday manding something of Europe,
closely aligned with Russia, Mr. meet that threshold now. the unconditional prevention about the U.S. push for Europe this is 28 allies agreeing.”

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A6 | Saturday/Sunday, February 18 - 19, 2017
Ten Nations Join Brazil Graft Probe
BY ROGERIO JELMAYER
AND LUCIANA MAGALHAES
SÃO PAULO—Prosecutors in
Brazil and 10 other countries
agreed to cooperate more
closely in their corruption in-
vestigations of Brazilian con-
struction company Odebrecht
SA.
The scandal has reverber-
ated across Latin America af-
ter the company admitted in a
settlement with the U.S. De-
partment of Justice in Decem-
ber that it paid a total of al-
most $800 million in bribes to
officials in multiple countries
to win large public-works con-
tracts.
Officials from Argentina,
Chile, Colombia, Ecuador,
Mexico, Panama, Peru, Domini-
can Republic, Venezuela, Por-
tugal and Brazil signed an
agreement late Thursday to
start a combined task force
with bilateral and multilateral
investigative teams to coordi-
nate a probe of the builder.
The new task force will also
cooperate with Brazil’s so-
called Operation Car Wash in-
vestigation of bid-rigging and
bribery by Odebrecht and
other construction companies
Brilliant
for contracts with Brazilian
state-run oil company Petroleo
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Brilliant
price.
Longstanding President Rafael Correa, who has run the country for a decade, isn’t on the ballot in Sunday’s first round of voting.
Ecuador Votes on Leader’s Legacy
BY RYAN DUBE
Voters in Ecuador go to the
polls Sunday for the first time
in a decade to elect a president
other than Rafael Correa,
opening a new chapter for a
tiny country that had grown
used to the leader’s free-spend-
ing, often combative ways.
The front-runner is Mr.
Correa’s former vice president
and favored candidate, Lenin
Moreno, 63, who represents a
continuation of the left-lean-
ing views that have been los-
ing popularity in the region in
recent years. Mr. Moreno is
expected to get the most
votes on Sunday, but fall short
of securing enough support to
avoid an April 2 runoff against
one of his seven opponents.
In a second round, Mr. Mo-
reno would likely face one of
two market-friendly candi-
dates: Guillermo Lasso, a for-
mer bank executive who lost
the 2013 election to Mr. Cor-
rea, or Cynthia Viteri, an ex-
Former Hong Kong Chief Guilty of Misconduct
BY CHESTER YUNG
HONG KONG—Former Hong
Kong leader Donald Tsang was
found guilty of misconduct,
becoming the most senior of-
ficial ever in the former Brit-
ish colony to be convicted in
court.
After a six-week trial, a
nine-member jury late Friday
found Mr. Tsang, aged 72,
guilty on one count of miscon-
duct in public office. He was,
however, cleared of another
count of misconduct, while the
jury was unable to reach a
verdict on a separate corrup-
tion charge.
Mr. Tsang was convicted of
misconduct for failing to dis-
close to his cabinet when he
was in office that he leased a
three-story penthouse in
Shenzhen from a businessman,
who was a major shareholder
of a broadcaster in Hong Kong.
WORLD NEWS
Citizens in Lima, Peru, demonstrate against officials who allegedly received bribes from Odebrecht.
Brasileiro SA, or Petrobras.
Brazil’s high court accepted,
earlier this year, a mammoth
plea deal with 77 former and
current employees of Ode-
brecht. Prosecutors have said
the company is at the center
of the graft ring involving
Petrobras.
Earlier this month, a Peru-
vian judge ordered the arrest
congresswoman.
Both of them say they
would cut taxes and repeal
some of Mr. Correa’s contro-
versial laws, including legisla-
tion critics say curbs freedom
of expression. Either candidate
could compete with Mr. Mo-
reno in a one-on-one race, as
polls suggest the opposition
would rally behind his rival.
For all that, however, many
Ecuadoreans doubt the 53-
year-old Mr. Correa, who has
maintained a tight grip on
power since first elected in
2006, is exiting politics for
good.
Instead, he will likely keep
his hand on the political pulse
of the small, Andean nation of
16 million through allies in his
leftist Alianza País party, po-
litical analysts say, even as the
party faces its first serious
electoral challenge from con-
servative opponents amid
voter concerns about a sput-
tering economy and a corrup-
tion scandal.
Donald Tsang leaving the High Court Friday after the verdict.
The broadcaster at the time
had various license applica-
tions that were approved by
Mr. Tsang’s cabinet.
Mr. Tsang served seven
years as Hong Kong’s chief ex-
ecutive, stepping down in July
* *** THE WALL STREET JOURNAL.
of former President Alejandro
Toledo, whom prosecutors
suspect took $20 million in
bribes in exchange for steering
contracts to Odebrecht for a
highway project connecting
southern Peru to Brazil.
Mr. Toledo, who is believed
to be outside of Peru, has de-
nied wrongdoing.
Former Brazilian President
“He’s one of those caudillo
leaders who can’t live without
politics,” said Simón Pach-
ano, a professor of politics at
the Latin American Faculty of
Social Sciences in Quito. “It’s
like water for a fish.”
The election is a test
for Latin America’s
populist left, which
has seen setbacks.
The election is the latest
test for Latin America’s popu-
list left, which has suffered
several setbacks since 2015 as
a sharp decline in commodity
prices hammered economies
across the region.
Mr. Moreno gets around in
a wheelchair, a result of his
being left paralyzed when he
was shot in a robbery nearly
two decades ago, and is mild-
BOBBY YIP/REUTERS
2012 when his term ended. At
the time, his approval ratings
had tumbled and he was under
investigation for allegedly ac-
cepting luxury trips and other
favors from wealthy tycoons.
He was arrested in October
ERNESTO ARIAS/EUROPEAN PRESSPHOTO AGENCY
Luiz Inácio Lula da Silva was
indicted in December over al-
legations of illegally benefiting
from two real-estate deals in-
volving Odebrecht in exchange
for help winning contracts
with state-run firms. Mr. da
Silva, who is a defendant in
several other cases and hasn’t
been arrested, denies the alle-
gations.
JOSE JORDAN/AGENCE FRANCE-PRESSE/GETTY IMAGES
mannered. Mr. Correa, in con-
trast, is belligerent on Twitter
and in his hourslong weekly
television program, in which
he excoriates opponents.
A former United Na-
tions special envoy for people
with disabilities, Mr. Moreno
has about 28% to 32% support,
according to pollsters Cedatos-
Gallup International and Mar-
ket. To win the presidency in
the first round, Mr. Moreno
would need a majority or 40%
of the votes if he were to se-
cure a 10-point difference over
the nearest rival.
“There is an important de-
sire for change,” said Sebas-
tian Hurtado, president of
Profitas, a Quito-based politi-
cal-risk consulting firm.
Mr. Correa, who is legally
barred from running this year,
has said he wants to move af-
ter the election to Belgium,
where his wife is from. But he
has said he could run again in
2021 if his political adversar-
ies “cause a lot of trouble.”
2015 and later charged.
On Friday, Mr. Tsang was
cleared of another charge re-
lated to his nomination of an
architect under the city’s hon-
ors and awards system, in
which he failed to disclose
that the man was hired for in-
terior-design work at the
Shenzhen apartment. Mr.
Tsang had pleaded not guilty
to all charges.
Hong Kong has had a suc-
cession of unpopular leaders
since it was returned to Chi-
nese control in 1997. Mr. Tsang
became Hong Kong’s chief ex-
ecutive after its first leader
resigned under pressure after
trying to introduce a contro-
versial security law that cur-
tailed individual rights.
The current chief executive,
Leung Chun-ying, will step
down in July. Mr. Leung said
in December that he wouldn’t
seek a second term.
 For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
THE WALL STREET JOURNAL.
BRENDAN SMIALOWSKI/PRESS POOL
Rex Tillerson, left, and China’s Foreign Minister Wang Yi met on the sidelines of a gathering of G-20 foreign ministers in Bonn, Germany.
Tillerson Urges China to Act
Secretary of state
exhorts Beijing to
‘use all available tools’
against North Korea
BY FELICIA SCHWARTZ
BONN, Germany—U.S. Secre-
tary of State Rex Tillerson told
China’s foreign minister that his
country should “use all available
tools” to confront North Korea’s
provocations, a State Depart-
ment spokesman said, as Beijing
and Washington held their high-
est-level meeting since Presi-
dent Donald Trump took office.
Mr. Tillerson and Wang Yi
met for about an hour Friday
morning in Bonn, on the side-
lines of a meeting of foreign
ministers of the Group of 20
leading industrialized and
emerging nations.
Their meeting came nearly a
week after North Korea con-
ducted a missile test into the
Sea of Japan, the first such test
ATTACK
Continued from Page One
that Kim Jong Un has purged
more than 100 senior officials
and ordered the execution of
his uncle. A South Korean law-
maker said Wednesday that
North Korea was behind the
alleged assassination.
North Korea’s ambassador
to Malaysia said Friday that
South Korea was trying to dis-
tort public opinion and politi-
cize the incident. “We will re-
spond strongly to the moves of
the hostile forces towards us
with their intent to besmirch
the image of our republic,”
Ambassador Kang Chol said.
Many details of Kim Jong
Nam’s life only deepen the
mystery surrounding his
death. He had little apparent
political ambition and em-
braced indulgences ranging
from Portuguese wine to Sal-
vatore Ferragamo loafers to
nightclubs across Asia. He had
a dragon tattoo on his back.
He had a sharp intellect and
enjoyed discussing global
events, some people who knew
him say. Kim Jong Nam also
spoke five languages and was
concerned by terrorist inci-
dents in Europe, where he had
studied. One friend who saw
Kim Jong Nam a month ago in
Paris said he seemed uncom-
fortable being the son and
grandson of dictators.
“Kim was an intelligent
freethinker who valued his
freedom,” said a friend of Kim
Jong Nam. The friend recalled
him saying he felt “sorry for
the North Korean people” and
hoped to work toward Korean
unification.
Malaysian police have ar-
rested four people allegedly
connected to the death: a
woman with an Indonesian
passport, a woman with a
Vietnamese passport, a man
who was the Indonesian
woman’s boyfriend and a man
with a North Korean passport.
On Friday, Indonesia’s national
police chief said the Indone-
sian woman was duped into
thinking she was part of a
comedy show prank, according
to the Associated Press.
Kim Jong Nam’s status in
North Korea’s ruling family
was complicated from his birth
in 1971. The product of an af-
fair between Kim Jong Il and
an actress, Kim Jong Nam was
* * * * * * * *
WORLD NEWS
since Mr. Trump was sworn in.
Mr. Tillerson and his Japanese
and South Korean counterparts
on Thursday condemned the
test and vowed a tougher inter-
national response.
Tensions between Beijing and
Washington eased last week af-
ter Mr. Trump called Chinese
President Xi Jinping and af-
firmed the U.S. commitment to
the “One China” policy that
grants diplomatic recognition to
China but not Taiwan. Mr.
Trump had previously said the
U.S. might not honor the policy
unless China made concessions
on trade.
The meeting came as Mr. Til-
lerson wrapped up a quick visit
to Bonn on his first overseas
trip as secretary of state.
Mr. Tillerson’s appearance at
the G-20 meeting drew most of
the attention here, as foreign
ministers were eager to speak
with the new U.S. chief diplomat
and seek clarification on the
Trump administration’s posi-
tions.
Kim Jong Nam, shown in Macau in 2010.
mostly raised away from the
Kim family home because his
grandfather, North Korea’s
founder, Kim Il Sung, disap-
proved of his father’s dalli-
ance, according to some histo-
rians. As the firstborn son in a
conservative patriarchal cul-
ture, Kim Jong Nam was
thought by outsiders to be the
eventual heir.
He grew up in separate
households from his half-
brother in Pyongyang, never
Many details of Kim
Jong Nam’s life only
deepen the mystery of
his death.
met him and spoke with “a
modern South Korean accent,”
reflecting his interactions with
South Koreans abroad, accord-
ing to a friend. The friend said
Kim Jong Nam knew his father
as “caring in private and dis-
tant in public.”
While studying in Moscow
and Geneva in the 1980s, Kim
Jong Nam became interested
in computers and was given
responsibility for technology
projects when he returned to
North Korea. His work took
him around Asia.
On a trip to Japan in 2001,
he was caught entering the
Saturday/Sunday, February 18 - 19, 2017 | A7
Mr. Tillerson on Friday morn- There appeared to be differ-
ing attended a meeting of minis-
ters from 10 countries that op-
ences, however, over the Iranian
nuclear deal and the Mideast
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2015 in the Belarusian capital —Ruth Bender
Minsk. contributed to this article.
the home. Real-estate listings
show that houses there sell for
more than $1 million.
In recent years, he lived in
the Chinese territory of
Macau, which offered a low
profile and comfort despite a
cat-and-mouse game with
journalists. Kim Jong Nam told
a Japanese journalist that he
felt free and safe in Macau,
adding that he was watched
over by authorities there.
On Friday, a resident of an
upscale apartment complex in
Macau where Kim Jong Nam
lived said he would occasion-
ally appear with young, pretty
women on his arm. He was
married, but local journalists
reported that he was known to
YONHAP NEWS/ZUMA PRESS
have a mistress who had
worked for North Korea’s state
airline. A son and daughter,
now both adults, attended
scout meetings and Catholic
Mass on Sundays. Ricardo
Pinto, the editor of a magazine
in Macau, said Kim Jong Nam
had a series of residences, in-
country with a fake Dominican cluding hotels and apartment
Republic passport and de- units. At least one was vacated
ported to China. after it was located by journal-
Kim Jong Nam never re- ists, the editor said.
turned to live in North Korea. After the November 2015
He told a Japanese journalist terrorist attacks in Paris, a
that he remained on good French flag was superimposed
terms with his father, spoke to over the profile photo on a
him regularly by telephone Facebook page believed to
and occasionally visited him in have belonged to Kim Jong
Pyongyang. Some analysts said Nam. The page included pho-
Kim Jong Nam might have had tos of casinos, yachts and mo-
a role in developing economic torcycles and a post several
ties with China. years ago said: “Living Las Ve-
In Beijing, he lived in a gas in Asia.” Academics from
gated, American-style subur- Harvard Business School, busi-
ban housing complex called nessmen, artists, journalists,
Dragon Villas, according to owners of nightclubs and res-
current and former residents. taurants, and club managers
The tree-lined community with were listed as Facebook
a clubhouse is near Beijing’s friends. Yoji Gomi, the Japa-
international airport and a nese journalist who inter-
golf course and is home to a viewed Kim Jong Nam and ex-
mix of senior Chinese execu- changed 150 emails with him
tives and expatriates. from 2010 to 2012, said in To-
Police began round-the- kyo on Friday that he was
clock patrols after he moved smart and concerned about in-
in. A blue Buick with a security ternational affairs.
guard was always stationed The journalist said Kim
outside Kim Jong Nam’s red Jong Nam was nervous and
brick home, according to a for- sweated profusely through
mer resident. On Thursday, a their first interview. He even-
black van with tinted windows tually opened up and became
was parked outside, and what increasingly critical of the
appeared to be plainclothes North Korean regime, Mr.
police patrolled on foot. Gomi recalled Friday.
He was sometimes spotted He said Kim Jong Nam ex-
strolling through the neigh- pressed no concern for his
borhood, the former resident safety in their last exchange.
said. A housekeeper would —Brian Spegele, Chieko
usually take his huskies for Tsuneoka and Troy
walks, this person said. It isn’t McCullough contributed to
clear whether Mr. Kim owned this article.
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
A8 | Saturday/Sunday, February 18 - 19, 2017 NY * *** THE WALL STREET JOURNAL.

OBITUARIES
MILES CAHN HANS ROSLING
1921—2017 1948—2017

Coach Co-Founder Swede Used Graphics

To Dispel Gloom
Struck Gold With Handbags
T
hough Hans Rosling
pranced around stages,
cracked jokes and called
BY SUZANNE KAPNER ment in the New York Times ad- himself an “edutainer,” his mes-
dressed to President Richard sage was serious: Extreme pov-
families as economic opportuni-
ties and education improved.
Dr. Rosling’s message: The
world isn’t as hopeless as humans
tend to think, and it isn’t impossi-

A
fter World War II, Miles
Cahn went to work for a
small manufacturer of men’s
wallets and other leather goods.
He spent the next 15 years won-
dering if he had made a mistake.
“We had only a few customers,”
Mr. Cahn wrote in “My Story,” a
memoir that he self-published in
2008. “And it took our best efforts
to hold on to them.” Mr. Cahn did
more than hold on to a few cus-
tomers.
By 1961, he and his wife, Lillian,
had bought the business and re-
named it the Coach Leatherware
Co., unwittingly setting in motion
a revolution in handbags.
Mr. Cahn died on Feb. 10 at his
Manhattan apartment. He was 95
years old.
Today, Coach Inc. is a global
fashion and accessories brand,
with $4.5 billion in sales in its
most recent financial year, which
ended July 2. But it was a differ-
ent story in the year before Mr.
Cahn and his wife bought the com-
pany, at which time sales had just
edged past $1 million.
daughter, Susi, in an interview. The
businessman was struck by the
suppleness of the leather, which
helped give Coach bags their sig-
nature look. “These soft, uncon-
structed bags soon developed a
very loyal following,” Mr. Cahn
wrote in notes he prepared for his
obituary.
M
r. Cahn was born April 18,
Nixon.
He paid employees above union
wages and began building a net-
work of retail stores long before
competitors, which at that time
mainly relied on department stores,
said Lew Frankfort, who Mr. Cahn
hired in 1979 and who served as
Coach chief executive for nearly
two decades starting in 1995.
In 1985, the Cahns sold Coach
for $30 million to Sara Lee Corp.,
which spun it off to shareholders
in 2000. The Cahns left the com-
pany at the time of the sale and
bought a 600-acre goat farm in
Pine Plains, N.Y. With an initial
herd of 200 goats that swelled to
1,500, the Coach Dairy Goat Farm
helped popularize goat cheese in
the U.S. just as the farm-to-table
movement took off. They sold the
farm in 2006, but Mr. Cahn se-
cured a conservation easement to
protect the land in perpetuity.
He wrote about his passion in
“The Perils and Pleasures of Do-
mesticating Goat Cheese,” pub-
lished in 2003. In his own eating
habits, Mr. Cahn displayed a curi-
erty can be eliminated.
During the past decade, the
Swedish researcher transformed
himself into a star of the interna-
tional conference circuit by jazz-
ing up his graphical displays of
global health and economic data.
Instead of graphs or charts, he
sent colorful bubbles jittering
across the screen to represent
changes in such things as infant
mortality and per capita income.
The data showed some surprising
improvements in human well-be-
ing, along with a convergence
around the world toward smaller
PETER MANSFIELD
1933—2017
MRI Nobel Winner
Risked All in a Test
ble to rescue even the most
wretched through better schools,
health care and government poli-
cies. People were gloomy about
prospects for the world, he
thought, because their minds were
conditioned by news media that
preferred covering horrific events
to charting gradual progress.
The Gapminder Foundation,
founded by Dr. Rosling in 2005,
promotes his ideas and provides
educational materials.
Dr. Rosling died Feb. 7 in Upp-
sala, Sweden. He was 68 years old
and had pancreatic cancer.

It was Mrs. Cahn, whom he
married in 1947, who suggested
getting into handbags. “I laughed
at the thought,” Mr. Cahn told the
New Yorker in 2011. “In New York,
there were a lot of handbag com-
panies, and at that time stores
were all buying knockoffs of bags
made in Europe.”
His wife not only prevailed, she
came up with one of their most
popular designs, modeled after a
paper shopping bag. Mrs. Cahn
died in 2013.
It was by accident, though, that
Mr. Cahn hit on an innovation that
would distinguish Coach. One of
his suppliers was trying to get rid
of a type of leather used to make
baseball gloves and Mr. Cahn
agreed to buy some, recalled his
1921, to Russian-Jewish
immigrants. He served in
the Army’s 78th Infantry Division
during World War II and then re-
turned to the City College of New
York to finish his degree in busi-
ness administration. In 1946, he
joined Gail Novelty Co., a small
New York factory that made men’s
billfolds. His father, who had dab-
bled in residential real estate, was
one of four investors who had each
put up $1,000 in 1941 to help start
the company. The younger Mr.
Cahn was paid $50 a week.
Over the next four decades, Mr.
Cahn, who favored bow ties,
turned Coach into a household
name, often by breaking with con-
vention. He protested the Vietnam
War by taking out an advertise-
ous mix of tastes. He started the
day with a pumpernickel bagel
smeared with goat cheese, and
ended it with a glass of Armagnac
and a Snickers candy bar, accord-
ing to his son, David.
“Looking back at it, I can appre-
ciate that life, for all its random-
ness, has dealt me a good hand,”
Mr. Cahn wrote recently in mus-
ings that he called “Reflections.” “I
will surrender it reluctantly when
my time is up and will sorely miss
it when I am gone.”
Besides his son, Mr. Cahn is sur-
vived by two daughters, Julie and
Susi, who is married to the chef Ma-
rio Batali, and five grandchildren.
 Read a collection of in-depth
profiles at WSJ.com/Obituaries
D
ecades before Peter Mans-
field shared the 2003 No-
bel Prize in Physiology or
Medicine with Paul Lauterbur for
discoveries in magnetic resonance
imaging, he offered himself up as
the first person to step into the
full-body MRI scanner his team
built.
At that point, the risks of
standing within a magnetic field
that was switching directions
were unclear. One medical scien-
tist had informed Dr. Mansfield, a
physicist, that it might stop his
heart, he wrote in his 2013 auto-
biography, “The Long Road to
Stockholm: The Story of Magnetic
Resonance Imaging.”
“I, on the other hand,” Dr.
Mansfield wrote, “had done my
own calculation and did not really
accept [his] result.”
Dr. Mansfield’s wife, Jean, was
there to say goodbye if something
were to happen to him, but no
medical team was present, as he
was bolted in and it would take 10
minutes to extricate him.
But since that first shot of Dr.
Mansfield, who died in a Notting-
ham, U.K., hospital Feb. 8 at 83
years old after suffering a stroke,
MRI scanners have become ubiq-
uitous in health-care settings and
are now widely used to diagnose
and monitor cancer and other dis-
eases affecting the nervous sys-
tem, heart and joints.
MRI scans record how protons
in water molecules behave after
being hit with a pulse of energy.

WORLD WATCH

WIDEN YOUR WORLD

DISCOVER
JESUS MORON/REUTERS

MORE GATE CRASHING: Almost 500 migrants stormed a 20-meter wall to enter Spain’s North African enclave
of Ceuta on Friday, crossing over from Morocco. It was one of the biggest such entries since 2005.

PAKISTAN
Army Raids Hideouts
W I T H T H E A I R L I N E T H AT F L I E S T O After Shrine Bombing
MORE COUNTRIES THAN ANY OTHER Pakistani security forces car-
ried out sweeping countrywide
raids after Thursday’s bombing
of a Sufi shrine in Pakistan’s
SPAIN
Princess Acquitted;
Husband Convicted
Judges acquitted Princess
Cristina de Borbón of tax fraud
charges in the first-ever trial of
a Spanish monarch’s sibling, but
PHILIPPINES
Duterte Critic Charged
With Taking Bribes
A Philippine senator who is a
prominent critic of President Ro-
drigo Duterte’s deadly antidrug
crackdown was charged Friday

ATHENS BEIRUT BUDAPEST

southern Sindh province, killing the court ruled against her hus- by prosecutors accusing her of
more than 100 suspected terror- band, sentencing him to six receiving bribes from detained

$599 $609 $549

ists, according to the military’s
public-relations wing.
The brutal attack on the
shrine, which killed 88 people
and wounded 343 people, raised
fears that Islamic State has be-
come emboldened in Pakistan,
years and three months in
prison on charges that included
embezzlement of public funds,
tax fraud and influence peddling.
The princess and her husband,
Iñaki Urdangarín, an Olympic
handball medalist turned busi-
drug lords.
The senator, Leila de Lima,
denied the charges and charac-
terized the case as “political per-
secution.” Ms. de Lima, when she
was a top human-rights official,
tried unsuccessfully to have Mr.

MUMBAI CAIRO DHAKA analysts and officials said Friday.

Islamic State claimed respon-
nessman, were alleged to be at
the center of a kickback scheme
Duterte prosecuted during his
mayoralty of Davao City for un-

$649 $599 $729

sibility for the attack in a state-
ment circulated by its Aamaq
news agency, saying it had tar-
geted a “Shiite gathering.”
The Sunni extremist group
views Shiites as apostates and
has targeted Pakistan’s Shiite
DELHI ROME TIRANA TEL AVIV minority in the past. It also
uncovered after the construction
of a stadium in Palma de Ma-
llorca, the capital of the Balearic
Islands. The trial started in Janu-
ary 2016 after a four-year inves-
tigation into Mr. Urdangarín’s
nonprofit consultancy, Nóos.
The three-judge panel in a
lawful deaths occurring under his
deadly antidrug crackdown.
Mr. Duterte expanded the
crackdown nationwide after be-
coming president in June, and
Ms. de Lima has continued to
criticize him since she became a
senator last year. Thousands of

$679 $559 $559 $629

views Sufi shrines as a form of
idolatry.
Government officials on Friday
lashed out Afghanistan, accusing
its government of ignoring earlier
T ICK E T ING PE R IOD: UN T IL 2 8 F E BRUA RY 2 017 pleas to crack down on militant
hide-outs.
T R AV E L I N G P E R IO D : U N T IL 3 0 A P R IL 2 017 Zahid Hussain, an expert on
T E R M S A N D C O N DI T IO N S A P P LY. FA R E S A R E A L L I N C L U S I V E . militants in the region, said a
toxic mix of violent Sunni mili-
P L E A SE V I SI T T UR K I S H A IR L I N E S . CO M F OR DE TA IL S . tant groups, many belonging to
banned groups that are flourish-
TURKISHAIRLINES.COM ing under new names, have
wrapped themselves in the ban-
ner of Islamic State group.
—Associated Press
provincial court in Spain’s
Balearic Islands fined Princess
Cristina €265,088 ($282,263) for
benefiting unknowingly from her
husband’s illegal financial gains.
The case had stoked resent-
ment of the country’s monarchy,
heightening the perception
among some Spaniards that the
once-venerated royal family had
begun to prioritize personal and
financial gain over public duty.
It was unclear on Friday
whether Mr. Urdangarín and his
lawyers would appeal the verdict.
—Jeannette Neumann
mostly suspected drug users
and small-time drug peddlers
have died since then.
Prosecutors alleged Ms. de
Lima, while she was justice sec-
retary under President Benigno
Aquino, received huge bribes
from detained drug lords to fi-
nance her senatorial campaign
last year. The bribes were alleg-
edly solicited by her former driver
and lover, who was also charged.
Ms. de Lima has staunchly
denied the charges and said her
lawyers were ready.
—Associated Press
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
THE WALL STREET JOURNAL.
3G, Berkshire Follow Familiar Playbook
Brazilian private-equity
firm 3G Capital Partners L.P.
and Warren Buffett are creat-
ing a global food and con-
sumer-goods empire by fol-
lowing a simple formula: buy a
company that is concentrated
By Julie Jargon,
Nicole Friedman
and Annie Gasparro
in one market, combine it with
another somewhere else and
then spread the products
across the world.
On Friday they took their
biggest swing yet when Kraft
Heinz Co., which is partly
owned by 3G and Mr. Buffett’s
Berkshire Hathaway Inc., said
it made a $143 billion ap-
proach to take over U.K. con-
KRAFT
Continued from Page One
Shares of Unilever rose
more than 13% in London trad-
ing, a sign investors believe a
deal of some sort may be possi-
ble. Shares of Kraft Heinz were
up more than 7% in New York.
The offer is also the latest,
sweeping foray into the global
consumer-goods industry by
Brazilian private-equity firm 3G
Capital Partners L.P. The group,
along with Warren Buffett, or-
chestrated the 2015 merger of
Kraft and Heinz, and remains
Kraft’s biggest shareholder.
3G also calls the shots at
Anheuser-Busch InBev SA, the
global beer colossus that last
year swallowed SAB Miller for
more than $100 billion. 3G has
targeted consumer companies
it considers bloated and ag-
gressively slashes costs.
Kraft is making its move at a
time when global consumer-
goods giants from Procter &
Gamble Co. to Nestlé SA are
struggling to boost sales. Many
of their biggest markets are
saturated and highly competi-
tive. That, and stubbornly low
inflation, have made it hard to
raise prices to make up for
sluggish sales growth.
For food companies, con-
sumer habits have changed
radically—away from the pack-
aged foods that made sense
across the developed world for
more than a generation and to-
ward fresh and healthier offer-
ings from an array of big and
small players.
For decades, the rise of baby
boomers, more women working
and a trend toward low-fat
foods “created a perfect envi-
ronment for packaged food
growth that came at the ex-
pense of fresh foods,” said RBC
analyst David Palmer. But over
the past several years, much of
that dynamic has changed.
One reason, according to Mr.
Palmer, is that millennials have
begun having babies. “This has
brought a new set of eating
values...today’s consumer is
avoiding food with sugar and
artificial ingredients,” he said.
The industry has tried to
pivot. Kraft, for instance, has
removed artificial colors from
foods like its famous orange
mac-and-cheese, and it created
a new brand of frozen meals
aimed at using trendier ingre-
dients to attract younger con-
sumers.
But the biggest players, in-
cluding Nestle, Unilever and
Kraft, also have scrambled to
BITMOJI
Continued from Page One
breaching professional courtesy.
“I embarrassed myself,” said
Mr. Blake, founder of Round Ta-
ble Companies in Highland Park,
Ill. He tried to save face minutes
later by sending a second bit-
moji of his avatar in pajamas.
“Nighty Night,” the caption
read. His employees panned
that one, too.
Pictures are only part of the
challenge. Many bitmojis pair
with whimsical captions that
lean on slang and internet
memes, confusing those not in
the know. A simple email seek-
ing verification from a col-
league could be sent as a cryp-
tic cartoon inquiring “Amirite?”
Whether to respond is un-
clear. Getting it wrong,
though, could mean being on
the receiving end of a dismis-
sive “SMH” bitmoji. (Transla-
tion: “shaking my head.”)
Bitmojis often nod to youth-
ful fads such as dabbing, a
* * * * * *
sumer products giant Unilever
PLC. Kraft Heinz later said
Unilever has declined the of-
fer, but that “we look forward
to working to reach agreement
on the terms of a transaction.”
If a deal happens, it would
cement 3G and Mr. Buffett as
the largest global players in
food and consumer packaged
goods by bringing together
household brands such as Kraft
Heinz’s Oscar Mayer hot dogs
and Unilever’s Dove soaps.
The strategy behind the
deal follows a familiar play-
book for 3G and Berkshire.
The firms first teamed up
in 2013 when they bought H.J.
Heinz Co. in a $23 billion deal.
At the time, the Pittsburgh
company generated two-thirds
of its sales outside the U.S.,
Shopping Spree
Kraft Heinz and Unilever products dominate many grocery-store aisles. But sales have slowed amid
tougher competition.
PERSONAL CARE
Kraft
*Kraft does not currently own
any personal care products
Unilever
Axe Dove
Dermalogica Pond's
St. Ives Caress
Vaseline TRESemmé
Lux Nexxus
Degree Noxzema
deodorant
Suave
Sunsilk
Q-tips
Sources: the companies
THE WALL STREET JOURNAL.
Food Giants
A Kraft Heinz–Unilever combination would bring together the world’s
No. 4 and 5 packaged foods firms.
$0 $10
Nestlé
PepsiCo
Mondelez
Unilever
Kraft Heinz
Danone
Mars
Lactalis
General Mills
Kellogg
Source: Euromonitor
cut costs to preserve margins.
3G has a reputation for swift
layoffs and scrutiny of even the
most minor costs using “zero-
base budgeting.” The process
calls for departments to justify
every expense anew each year.
dance move that resembles
someone sneezing into his or
her elbow. Others include years-
old references to TV shows or
movies whose origins can be
lost on those less attuned to
pop culture.
Melissa Prompuntagorn, a
27-year-old auditor in Austin,
Texas, was taken aback when an
older colleague texted her a bit-
moji with the caption, “I’m on a
BOAT”—the title of a profanity-
laden rap parody featured on
“Saturday Night Live” in 2009.
The bitmoji avatar was even
dressed in a tuxedo, posing like
comedians Andy Samberg and
Akiva Schaffer and the rapper
T-Pain, who appear in the video.
Ms. Prompuntagorn said she
had been working on a project
involving a marina. She figured
her colleague, a professed gos-
pel music fan, didn’t grasp the
bitmoji’s back story. She de-
cided not to explain.
Seeing the growing popu-
larity of bitmojis, Snapchat
parent Snap Inc. last year paid
more than $100 million to buy
Bitstrips Inc., maker of the
THE KRAFT UNILEVER BID
with more than 20% in emerg-
ing markets. Two years later,
in a deal orchestrated by 3G
and Mr. Buffett, Heinz bought
U.S.-centric food maker Kraft
Foods Group Inc. to create one
of the world’s largest food and
beverage companies.
It isn’t clear what role Mr.
Buffett might play if Kraft
Heinz and Unilever reach a
deal. Berkshire could split the
cost of the acquisition with 3G
and it could also help 3G fund
its part of the deal.
As 3G’s global ambitions
have grown, the firm has given
Mr. Buffett access to new mar-
kets and deals he normally
wouldn’t do on his own. Unlike
Berkshire, which has a reputa-
tion for hands-off ownership,
3G is known for aggressively
PREPARED FOODS, CONDIMENTS
Kraft
A.1. Steak Sauce Cheez Whiz
Grey Poupon Cool Whip
Classico Oscar Mayer
Heinz condiments Kraft macaroni
and cheese
Kraft condiments
Ore-Ida
Kraft singles
Smart Ones
Velveeta cheese
Planters
Philadelphia
Jell-O
Lunchables
Unilever
I Can't Believe Blue Band
It's Not Butter!
Promise
Country Crock
Brummel &
Brown spreads
Hellmann's
Knorr sides
PACKAGED FOOD SALES, IN BILLIONS
$20 $30 $40 $50
THE WALL STREET JOURNAL.
This week, Kraft announced
plans to squeeze out $200 mil-
lion more in savings than it ini-
tially targeted in the combina-
tion. But its momentum in
improving profitability is slow-
ing.
FROM PAGE ONE
Bitmoji app. Apple Inc. incor-
porated such images, known
as stickers, into a recent up-
grade of iMessage.
Bitstrips CEO Jacob “Ba”
Blackstock said there are
plenty of workplace-friendly
bitmojis, such as ones that say
“Good job!” or “Bravo” or
“Well Played.”
“They’re like the modern
equivalent of giving someone a
gold star on a homework as-
signment,” he said.
Still, he recommended being
selective. “We have a lot of af-
fectionate bitmojis, so you
might not want to be too affec-
tionate with your co-workers.”
Going overboard is a risk.
Young adults are “used to giv-
ing a minute-by-minute status
report of their most banal ev-
eryday experiences,” said Ro-
salind Wiseman, author of
“Queen Bees & Wannabes,” the
book on which the film “Mean
Girls” was based.
“There are no boundaries be-
tween their personal and pro-
fessional lives,” Ms. Wiseman
said. “It’s not even something
cutting costs and jobs.
“On the surface, it’s incon-
sistent,” said David Kass, a
professor at the University of
Maryland’s Robert H. Smith
School of Business and a Berk-
shire shareholder. “But I think
from Buffett’s point of
view…it’s not Berkshire mak-
ing these operating decisions.”
The motivation for Berk-
shire is that as the firm has
grown, Mr. Buffett has strug-
gled to find deals big enough
to move the needle on the
firm’s earnings. Berkshire’s
subsidiaries, which include in-
surers, a railroad, utilities and
retailers, rapidly pile up cash
for their parent company to
spend. Mr. Buffett has com-
pared his search for ever-larger
deals to elephant hunting.
DRINKS, FROZEN SNACKS
Kraft
Maxwell House Golden Circle
Capri Sun Complan
Unilever
PG Tips Magnum
Lipton Ben & Jerry’s
Bru Good Humor
Talenti Fruttare
Klondike Breyers
Popsicle
Unilever Chief Executive
Paul Polman rolled out his own
version of zero-base budgeting
last year, though margins there
are still significantly lower
$60 than they are at Kraft. Uni-
lever’s earnings before interest
and taxes are only 15.3% of
sales, while Kraft Heinz’s are
30%, said RBC’s Mr. Palmer.
A union would bring to-
gether brands like Kraft Heinz’s
namesakes, Oscar Mayer hot
dogs, Planters peanuts, Phila-
delphia cream cheese and Max-
well House coffee with Uni-
lever’s Hellmann’s mayonnaise,
Lipton teas and Ben & Jerry’s
ice cream.
But Kraft Heinz also would
be pushing into uncharted ter-
ritory, acquiring Unilever’s long
list of personal-care and home-
care brands like Dove soaps,
Axe deodorant and Surf laun-
dry detergent.
Unilever’s Mr. Polman has
steered the company away
from food and toward these
higher-margin goods, which
now make up the bulk of the
they think about.”
After a lunch break, 24-
year-old LeighAnn Aureli
wanted to make her bitmoji
appear as if in a “food coma,”
the lethargic state that comes
from eating a big meal.
She texted her manager an
image of her dazed avatar ly-
ing on a pile of food scraps
and dirty dishes. He replied
seconds later, asking whether
she was sick and unable to
come back to work. Ms. Aureli
was fine—it was just that she
had eaten a really large slice
of pizza. “I called him to nip
the miscommunication in the
bud,” Ms. Aureli, an events co-
ordinator in New York, said.
Now, she only sends standard
text messages to her manager,
who she describes as “at least
10 years older.”
Mr. Blake, the bedtime-tex-
ting CEO, also has become
more cautious about which bit-
moji to send. He finally gained
approval from his employees
after texting them a third bit-
moji of his character in a suit
and tie, dancing to the caption,
Saturday/Sunday, February 18 - 19, 2017 | A9
He declined to com- East, making it one of the fast-
ment Friday through an assis- est-growing fast-food chains
tant. A 3G spokesman didn’t in the world with more than
return a call seeking comment. 15,000 restaurants.
In his 2015 annual letter, Mr. 3G teamed up with Mr. Buf-
Buffett wrote that Berkshire fett in 2014 when Burger King
and 3G both “crave efficiency took over Canadian coffee-
and detest bureaucracy,” but and-doughnut chain Tim Hor-
Berkshire seeks those qualities tons Inc. for $11 billion. The
before buying companies and company has since brought
3G buys companies with the more Tim Hortons to the U.S.
goal of cutting costs. 3G’s exec- and to new overseas markets
utives “could not be better such as the Philippines.
partners,” he wrote. At the time of that merger,
Meanwhile, 3G and Mr. Buf- people familiar with the mat-
fett are becoming a global ter said Burger King wanted to
force in the restaurant indus- fashion itself after Yum
try. When 3G bought Burger Brands Inc., the owner of
King in 2010, the majority of Pizza Hut, Taco Bell and KFC,
the restaurants were in the by becoming a holding com-
U.S. Since then, 3G has pushed pany with unrelated, sepa-
Burger King into Latin Amer- rately managed restaurant
ica, Europe and the Middle brands.
Bid Faces Two Sides
Of Regulatory Coin
the beer, agriculture and finan-
cial-services sectors.
“The times of business as
usual, big is beautiful, are com-
pletely gone” in Europe, said Ni-
Kraft Heinz Co.’s plan to colas Petit, a professor of com-
swallow Unilever PLC with a petition law at the University of
$143 billion offer doesn’t just Liège. “In the past two years, the
face winning over Unilever, pendulum has swung back and
which quickly said “no thanks” concentration matters again.”
on Friday. In the U.K., Kraft has stirred
Should the Anglo-Dutch gi- controversy in the past. In
ant change its mind, antitrust 2010, it acquired Cadbury PLC,
regulators in the U.S., Europe in a tie-up that ended the in-
and beyond are likely to give dependence of Britain’s most
the deal close scrutiny. Unilever famous candy company. At the
and Kraft are the No. 4 and time, U.K. lawmakers accused
No. 5 packaged-food makers Kraft of going back on a
globally by market share, re- pledge to keep a factory open.
spectively, according to Eu- Kraft has said after a closer
romonitor. But their footprints look, it realized plans to move
are varied around the world. production overseas were too
Kraft is much bigger in the far along to reverse. Prime
U.S., while Unilever is stronger Minister Theresa May in July
in several emerging markets. took specific aim at Kraft’s
Kraft’s desire to expand its takeover of Cadbury during her
overseas operation could have campaign to become leader.
political support at home as its Britain’s Unite trade union
workforce is just a quarter of said in a statement Friday it
the size of Unilever and the opposed a Kraft-Unilever deal.
U.S. company already has at- The U.K. government said it
tacked costs with its zero- was aware of the bid but
based budgeting approach. The wouldn’t comment on specifics.
Trump administration has made In the Netherlands, Prime
clear its opposition to company Minister Mark Rutte, a former
moves that cost U.S. jobs. human-resources director at
The bid could raise more Unilever, said his government
complicated issues in Europe. would monitor developments.
The European Commission He said the approach by Kraft
has been taking an increasingly is “primarily Unilever’s business
skeptical view of large consoli- and not the government’s.”
dation moves in the wake of —Jenny Gross
some big, complex mergers in and Natalia Drozdiak
company’s portfolio. fer from Kraft, which has al-
In a statement Friday, Uni- ready courted controversy in
lever said Kraft’s offer was $50 the U.K. Critics accuse it of
a share, in a mix of $30.23 in backtracking on a promise to
cash payable in U.S. dollars and keep a factory open in the U.K.
0.222 share of the combined after it bought Cadbury in
new company. 2010. Mondelez International
Unilever said Kraft Heinz’s Inc. kept the Cadbury business
proposal represents a premium when it split with Kraft in 2012.
of 18% to its Thursday closing Kraft has said it tried to
price. Under U.K. takeover keep the factory open, but later
rules, Kraft has until March 17 found that plans to move pro-
to make a formal offer sweet- duction abroad were too far
ening the deal, or it must walk along to change.
away. Unilever is considered one
The deal comes after a steep of the Netherlands’ corporate
drop in the value of the pound jewels. The company employs
against the dollar. Unilever around 3,000 people there and
shares, meanwhile, have fallen operates several plants and a
7% since September amid its research lab. Dutch Prime Min-
recently sluggish sales ister Mark Rutte, who faces
Should Kraft ultimately con- elections next month, is a for-
vince Unilever on the merits of mer human-resources director
a deal, it has other hurdles. An- at the company. On Friday, he
titrust issues aside, Unilever’s called Unilever “an important
unusual corporate structure company, a proud company”
and deep roots in Europe could and said his government will
force a close look by politi- monitor developments.
cians. Unite, Britain’s biggest But he also said it was “pri-
union, on Friday said it would marily Unilever’s business and
urge Unilever to reject any of- not the government’s.”
scratching over a bitmoji is
about the character’s actual
head. Keith Wagner, owner of
a Hand & Stone spa franchise
in Bee Cave, Texas, was irked
after he let several employees
in their early 20s create his
avatar. “They had me com-
pletely bald, which I’m not,”
he said. “It’s thin, but not that
far gone.”
Mr. Wagner, who is in his
60s, wasn’t pleased about the
DAVID COHEN/MANIFEST DISTILLING
outfit they chose for his bit-
moji either. “They had me in
the kind of leisure suit that
was big back in the ‘70s,” he
said. Tired of his employees
teasing him, Mr. Wagner
turned to his wife and business
partner for help. She created a
new bitmoji that captured his
Corey Blake has sent cartoon good looks, he said.
images of himself to employees. Alaina Johnson, one of the
employees behind Mr. Wag-
“Do the Creep.” The cartoon is ner’s original avatar, received a
among several that reference text with a redesigned version
videos from Mr. Samberg’s of the boss on a skateboard.
comedy troupe The Lonely Is- The caption read, “Stoked!”
land, which joined with Bit- “It was adorable,” said Ms.
strips to make the images. Johnson, 21. “It’s something
In some cases, head- I’ve never heard him say, ever.”
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
A10 | Saturday/Sunday, February 18 - 19, 2017 * *** THE WALL STREET JOURNAL.

SPORTS
HEARD ON GOLF
THE FIELD

Are Pro Golfers

Losing Their
Longevity?
The physical toll of the modern swing
McGregor’s Sparring
may curtail how long today’s pros last
Partner: Mayweather
Would Be a Big Reach
In spite of all the recent attention
focused on a prospective boxing
match between retired pugilist-turned
promoter Floyd Mayweather and
mixed martial artist Conor McGregor,
the undefeated welterweight legend
has yet to reach any agreement with

ROBERT LABERGE/GETTY IMAGES

the UFC star. The potential for a pay-
per-view fight between the two
would likely be worth nine figures.
But it also might be not be much of
a fight—at least according to one of
the few people who has been in the
ring with McGregor.
“Conor McGregor in a boxing
ring, against a guy like Floyd May- Jason Day of Australia plays his shot from the 13th tee during the second round of the Genesis Open at Riviera Country Club in Pacific Palisades, Calif. on Friday.
weather?” said Chris van Heerden, a
pro boxer who served as McGregor’s But recent trends have at least drives and higher finishes in the days of Jack Nicklaus.
BY BRIAN COSTA
sparring partner last May. “Brother, I raised the possibility that the typi- short term, that is a price players In 1986, Nicklaus won his 18th
don’t give him any chance. What cal career arc for a pro golfer is appear increasingly willing to pay. and final major title at age 46. He
chance does he have against May- LOS ANGELES—Jason Day is 29 fundamentally changing. Every swing is different, but played in his last PGA Tour event
weather, the best boxer in the years old, 12 years younger than On the one hand, success for Woods, Day and McIlroy embody a at age 65.
world? A puncher’s chance. So he his friend and mentor, Tiger some is coming at ever younger stylistic change that has pervaded “We’re playing so much more
swings well; he swings a big shot. Woods. But as Day watches Woods ages. Five of the first six PGA Tour the sport. In his book, “The Anat- golf than they were back then,”
Maybe he lands it. That might seal suffer through yet another chapter events so far this year have been omy of Greatness,” the Golf Chan- Furyk said. “That may lead to
it for him. But honestly, do I see of his back injury saga, his fear won by players between the ages of nel analyst Brandel Chamblee shorter life cycles.”
Conor beat Mayweather, no, I don’t.” isn’t merely that he will end up 22 and 24. On the other hand, play- studied the swing traits of some of Of course, no one wants to end
As a youth in Dublin, McGregor like Woods at that age. His fear is the greatest golfers throughout up exactly like Woods, no matter
did train some as a boxer, and van that he will end up like Woods history. He found a few key differ- how many tournaments they win
Heerden credits him with a strong even sooner. ences in the contemporary swing along the way. His present is pain-
left counterpunch. But at 25-2-1, the “Hopefully I can stay healthy
‘Hopefully I can stay from past generations. ful and his future appears increas-
South African van Heerden doesn’t and get to 40,” said Day, the healthy and get to 40,’ In general, Chamblee said, the ingly bleak. And there are plenty
even like his own chances against world’s top-ranked golfer. modern swing is shorter, with of ways today’s stars can avoid the
Mayweather, much less someone By traditional golf standards,
said Jason Day, the more restrictive lower body move- same fate.
who has splits his time between hoping to play comfortably to age world’s No. 1 golfer. ment. That requires a more violent Day said he is making a slight
punching, kicking, and grappling. 40 is a modest goal. This is, after turn to initiate the downswing, swing change this year that will
“When you take it to a boxer,” all, a sport in which players have which takes more of a physical toll make it easier on his back even if it
van Heerden said, “he’s really just won major championships in their than swings that are longer and is likely to cost him a few yards off
gonna focus on movement and 40s and won tournaments in their ers who could hardly be considered more rhythmic. the tee. Players are becoming ever
punching. No grappling, no energy 50s. But the modern swing that old are showing some wear and tear. “The golf swing needs to ex- smarter about the way they ap-
wasted on grappling, no energy enables players to hit the ball far- Day, who has a history of back plode, because it has less time to proach fitness. And if more of them
wasted on kicking. You waste your ther than ever is also taking a issues, took three months off in late build up speed,” Chamblee said. break down at earlier ages, their
energy purely on boxing skill.” physical toll on some, which raises 2016 to recover from a back injury. “This leads to a chain reaction of peers can draw lessons from that.
And even punching changes the question: Will the same stars McIlroy, 27, has his own history of trauma in the body.” “If these guys only have 10-year
from the octagon to the ring. who are peaking earlier than ever back pain and has been sidelined That kind of swing also requires careers, that will be more learning
“A mixed martial artist, they also flame out at younger ages for the past month by a fractured more sheer strength to execute and for golf,” said 2006 U.S. Open
swing wildly,” van Heerden contin- than their predecessors? rib. Justin Rose, last year’s Olympic endure. With their ripped phy- champion Geoff Ogilvy. But if they
ued. “They put together maybe For Woods, whose prime was gold medalist, took two months off siques, Woods, Day and McIlroy have 20-year careers, that might
one or two punches—straight more prolific than any the game to deal with a back problem in the are all symbols of an era that has well be enough for some of them.
punches—whereas a boxer focuses has ever seen, the answer is al- fall only to have to withdraw from earned golfers more respect as ath- Thomas Pieters, a 25-year-old
so much more on combinations.” ready yes. His latest comeback at- a tournament in December. letes. But as golfers become more Belgian who is one of golf’s rising
But while van Heerden agreed tempt from three back surgeries Speaking recently on the No like athletes in other sports, some stars, said for as much as he wants
that Mayweather-McGregor feels has quickly devolved. After with- Laying Up podcast, McIlroy said, of them may also begin to age a bit to win major championships now,
like a cash grab, even he can’t con- drawing from this week’s Genesis “Because of how athletic golf is more like athletes in other sports. he wants to do something else by
ADAM HUNGER/REUTERS

tain his curiosity. Open, he withdrew from a sched- now and how much more of a Jim Furyk, one of the most du- the time he is in his mid-40s. He
“It doesn’t deserve to be on pay uled news conference Wednesday, power sport it is, you’re going to rable PGA Tour veterans at age 46, has thought about joining some of
per view,” said van Heerden. “I will with organizers citing doctors’ or- see guys maybe not play into their said the year-round tournament his friends in the real estate busi-
buy it. I just want to see it. I don’t ders for him to limit all activities. 50s. And maybe that’s OK.” schedule and overseas playing op- ness one day.
believe that this fight should even For the generation of players If longevity is the price of an ex- portunities means golf can wear “There is more to life than golf,”
happen, honestly.” —Alex Raskin behind him, the answer is unclear. plosive swing that leads to longer on players more than it did in the he said.

Weather
Shown are today’s noon positions of weather systems and precipitation. Temperature bands are highs for the day. Auston Matthews
40s Edmonton
d t 20s <0
20s
Vancouver
Vanc
Calgary 30s 0s
10s
Seattle Winnipeg
ip
30s 20s
30s
P d
Portland Montreal 30s
Helena 40s Ottawa Augusta
A
40s Bismarckk 40s
Billings
Eugene 50s 40s
30s Boise pls //St. Pa
Mpls./St. P
Paul Toronto
T t Albany
A b
ban Boston
t 50s
Pierre
50s Milwaukee
k Detroit
Buffalo
ff l Hartford
rtford 60s
Sioux
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Cleveland
Clevel d 50s New ew Y
Yorkk 70s
Reno Des
es Moines
i Chicago
Ch
50s Cheyenne
C heyenne
y 60s Philadelphia
Ph
hil d lphi
h 80s
Sacramento Saltt Lake
L ke City
C y Omaha
h Indianapolis Pittsburgh
30s Denver Washington
shington
h D.C.
DC
n Francisco
San 90s
Springfield
p g Richmond
h d
40s Colorado
Color d 60s Topeka Charleston
Charlesto 100+
Springs
p Kansas 70s St.. Lou
Louis Louisville
L
Lou 70s
Las Wichita
hit City Raleigh
l igh
h
Vegas
40s 50s
Los A
Angeles
Ange Charlotte
Ch l tt
Santaa FFe h
Memphis h
Nashville
60s Ph
Phoenix Albuquerque
Alb q q Oklahoma
klahoma
homa City Birmingham
Birmingh
Columbia
C b
Warm Rain
San Diego Little Rock Atlanta
A
Tucson
T c 70s
Ft. Worth D ll
Dallas Jackson
Jack
Cold T-storms
THE COUNT
P
El Paso
Mobile
bil Jacksonville
J k ill
80s
A YOUTH MOVEMENT FOR THE AGES
Austin
A ti
-0s 0s Houston
t Stationary Snow
ew Orleans
New l Orlando
l d
10s 80s San
an Antonio
A t i Tampa
Ta p
20s Honolulu
l l
80s Showers Flurries
Miami
A h g 30s
Anchorage 90s
70s
40s Ice Visit the Toronto Maple Leafs’ locker room,
and you might think you accidentally visited a
U.S. Forecasts Today Tomorrow Today Tomorrow
high school hockey team by mistake.
Go Rookies Go
City Hi Lo W Hi Lo W City Hi Lo W Hi Lo W
s...sunny; pc... partly cloudy; c...cloudy; sh...showers; Led by Mitchell Marner (the 4th pick in Since 1967-68, non-expansion NHL teams with the
Omaha 62 41 s 67 55 pc Frankfurt 48 33 c 50 37 pc
t...t’storms; r...rain; sf...snow flurries; sn...snow; i...ice
Orlando 83 63 t 83 58 pc Geneva 47 33 pc 50 32 pc the 2015 NHL Entry Draft), Auston Matthews highest percentage of points scored by rookies:
Today Tomorrow Philadelphia 63 47 s 67 40 s Havana 84 61 pc 86 62 s
City Hi Lo W Hi Lo W (the 1st overall pick in the 2016 draft), and TEAM % TOP ROOKIE SCORER
Phoenix 64 52 t 64 50 r Hong Kong 73 62 s 70 65 c
Anchorage 31 18 pc 27 14 c Pittsburgh 64 45 pc 62 37 pc Istanbul 50 45 s 53 46 pc William Nylander (the 8th overall pick of the 2016-17 Maple Leafs* 47% M. Marner (48)
Atlanta 63 50 c 73 48 s Portland, Maine 41 32 pc 44 27 pc Jakarta 86 76 pc 87 75 t 2014 draft), the Maple Leafs are taking their 1974-75 Golden Seals 38.9 L. Patey (45)
Austin 86 60 pc 80 56 t Portland, Ore. 48 37 r 48 40 r Jerusalem 51 34 s 55 35 s youth movement to historic levels.
Baltimore 64 46 pc 68 42 s Sacramento 60 44 sh 58 51 r Johannesburg 75 58 c 79 58 pc 1981-82 Jets 38.6 D. Hawerchuk (103)
Boise 52 37 sh 50 41 sn St. Louis 70 46 pc 73 55 s London 53 41 c 53 45 pc Overall, rookies have accounted for an in-
1975-76 Capitals 38.5 N. Pyatt (49)
Boston 45 38 pc 49 32 s Salt Lake City 58 40 c 49 35 r Madrid 56 42 pc 57 37 sh credible 47% of the Maple Leafs scoring this
Burlington 43 36 pc 42 31 r San Francisco 58 49 c 59 54 r Manila 86 76 sh 86 75 r year. According to Stats LLC, that is the high- 1984-85 Penguins 37.6 M. Lemieux (100)
Charlotte 71 45 c 76 43 s Santa Fe 58 35 c 51 29 c Melbourne 65 50 pc 63 50 r
Chicago 62 35 s 61 42 s Seattle 49 39 r 50 41 r Mexico City 75 45 s 74 50 pc est percentage for a non-expansion team in *Through Thursday
Cleveland 61 41 s 54 35 s Sioux Falls 58 38 pc 61 51 pc Milan 55 35 pc 54 34 s the last 87 years. Since the league expanded Source: Stats, LLC WSJ
Dallas 79 59 pc 79 62 c Wash., D.C. 67 51 pc 68 44 s Moscow 36 29 sf 35 32 sn in 1967, no other non-expansion team has
Denver 64 37 pc 67 40 pc Mumbai 97 77 pc 96 75 pc
had its rookies account for more than 40% of
Detroit
Honolulu
60 36 s
83 67 sh 77 67 pc
57 35 s
International Paris
Rio de Janeiro
52
93
33 pc
77 s
53 41 c
93 78 s scoring. Before Friday’s games, Maple Leafs’ that began in 2014, and included trading away
Houston 85 64 pc 81 67 c Today Tomorrow Riyadh 58 38 s 55 43 pc
City Hi Lo W Hi Lo W
rookies are 1st (Marner, tied with Winnipeg’s stars Phil Kessel and Dion Phaneuf for pros-
Indianapolis 61 42 c 65 44 s Rome 59 38 pc 57 37 pc
MARK BLINCH/NHLI/GETTY IMAGES

Kansas City 68 45 pc 72 57 pc Amsterdam 48 40 c 48 43 c San Juan 85 72 s 84 72 s Patrik Laine), 3rd (Matthews), and 4th (Ny- pects before the 2015-2016 season. That year,
Las Vegas 55 48 r 62 50 c Athens 60 47 pc 61 52 sh Seoul 36 24 s 45 26 r lander) place in the rookie scoring race. Keep the team finished last in the NHL standings
Little Rock 68 49 c 77 54 pc Baghdad 57 33 s 59 35 s Shanghai 55 43 s 65 52 pc going down the list and you’ll find more Ma- for the first time since the 1984-1985 season.
Los Angeles 63 52 sh 65 56 pc Bangkok 93 72 s 93 73 s Singapore 84 77 sh 86 76 sh
Miami 83 69 pc 86 68 pc Beijing 51 29 s 60 25 pc Sydney 80 66 t 74 63 sh ple Leafs: defensemen Nikita Zaitsev, right- The Maple Leafs (26-19-11) are still only
Milwaukee 56 37 s 44 39 s Berlin 41 34 c 45 40 pc Taipei 70 64 r 80 63 pc winger Connor Brown, and centerman Zach on the playoff bubble. But after decades of
Minneapolis 53 34 pc 57 47 pc Brussels 47 38 c 48 42 c Tokyo 50 39 r 50 41 s Hyman hold the 10th, 12th, and 14th posi- enduring mediocre hockey, the citizens of
Nashville 63 47 sh 72 44 s Buenos Aires 82 72 t 87 70 s Toronto 48 33 s 44 27 s
New Orleans 76 59 pc 79 61 pc Dubai 72 62 pc 70 62 s Vancouver 44 36 c 46 37 r tions, respectively (all tied). Canada’s largest city are experiencing a
New York City 58 45 s 60 38 s Dublin 53 42 c 53 47 c Warsaw 39 33 c 39 33 c The results reflect a dramatic team rebuild strange feeling: optimism. —Dillon Baker
Oklahoma City 67 49 c 70 53 c Edinburgh 52 44 r 52 48 c Zurich 46 28 pc 48 29 pc
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
THE WALL STREET JOURNAL.
THE WEEKEND INTERVIEW with Scott Pruitt | By Kimberley A. Strassel
A Back-to-Basics Agenda for the EPA
R
epublican presidents
tend to nominate one of
two types of administra-
tor to lead the Environ-
mental Protection
Agency. The first is the centrist—
think Christie Todd Whitman
(2001-03)—who might be equally
at home in a Democratic adminis-
tration. The other is the fierce
conservative—think Anne Gorsuch
(1981-83)—who views the agency
in a hostile light.
Scott Pruitt, whom the Senate
confirmed Friday, 52-46, doesn’t
fit either mold. His focus is neither
expanding nor reducing regulation.
“There is no reason why EPA’s role
should ebb or flow based on a par-
ticular administration, or a partic-
ular administrator,” he says.
“Agencies exist to administer the
law. Congress passes statutes, and
those statutes are very clear on
the job EPA has to do. We’re going
to do that job.” You might call him
an EPA originalist.
Not that environmentalists and
Democrats saw it that way. His
was one of President Trump’s
most contentious cabinet nomina-
tions. Opponents objected that as
Oklahoma’s attorney general Mr.
Pruitt had sued the EPA at least 14
times. Detractors labeled him a
The new administrator
plans to follow his
statutory mandate—
clean air and water—and
to respect states’ rights.
“climate denier” and an oil-and-
gas shill, intent on gutting the
agency and destroying the planet.
For his confirmation hearing, Mr.
Pruitt sat through six theatrical
hours of questions and submitted
more than 1,000 written re-
sponses.
When Mr. Pruitt sat down
Thursday for his first interview
since his November nomination, he
spent most of the time waxing en-
thusiastic about all the good his
agency can accomplish once he re-
focuses it on its statutorily defined
mission: working cooperatively
with the states to improve water
and air quality.
“We’ve made extraordinary
progress on the environment over
the decades, and that’s something
we should celebrate,” he says. “But
there is real work to be done.”
What kind of work? Hitting air-
quality targets, for one: “Under
current measurements, some 40%
of the country is still in nonattain-
ment.” There’s also toxic waste to
clean up: “We’ve got 1,300 Super-
fund sites and some of them have
been on the list for more than
three decades.”
Such work is where Washington
can make a real difference. “These
are issues that go directly to the
It’s Racial Indoctrination Day at an Upscale Chicagoland School
What passes for edu-
cation at many Amer-
ican public schools is
too often closer to in-
doctrination. Con-
sider the seminar day
that New Trier High
CROSS
COUNTRY School, in Winnetka,
Ill., on Chicago’s afflu-
By Peter
ent North Shore, is
Berkowitz
planning for Feb. 28.
The title for the
all-school seminar is “Understanding
Today’s Struggle for Racial Civil
Rights.” That very term, “racial civil
rights,” is misleading, since civil
rights protect Americans’ freedoms
regardless of their race. Judging from
the roster of scheduled events, the
seminar might be more accurately ti-
tled “Inculcating a Progressive View
of Social Justice.”
As administrators foist
‘social justice’ on 4,000
suburban students,
parents plead for balance.
Here are a few of the offerings
scheduled for presentation to New
Trier’s roughly 4,000 students:
“SPENT: A Simulation to See How
Long You Can Survive on Minimum
Wage”—which touches on race at best
tangentially. “Developing a Positive,
Accountable White Activism for Racial
Civil Rights”—which promotes a divi-
sive view of race as a primordial fact,
the essence of identity, a bright line
between oppressed and oppressor.
“One Person One Vote: Can the Voting
Rights Act Be Saved?”—which ab-
surdly suggests that the Voting Rights
Act is at risk of being repealed.
* * * *
health of our citizens that should
be the absolute focus of this
agency,” Mr. Pruitt says. “This
president is a fixer, he’s an action-
oriented leader, and a refocused
EPA is in a great position to get
results.”
That, he adds, marks a change
in direction from his predecessor
at the EPA, Gina McCarthy. “This
past administration didn’t bother
with statutes,” he says. “They dis-
placed Congress, disregarded the
law, and in general said they
would act in their own way. That
now ends.”
Mr. Pruitt says he expects to
quickly withdraw both the Clean
Power Plan (President Obama’s
premier climate regulation) and
the 2015 Waters of the United
States rule (which asserts EPA
power over every creek, pond or
prairie pothole with a “significant
nexus” to a “navigable waterway”).
“There’s a very simple reason why
this needs to happen: Because the
courts have seriously called into
question the legality of those
rules,” Mr. Pruitt says. He would
know, since his state was a party
to the lawsuits that led to both the
Supreme Court’s stay of the Clean
Power Plan and an appeals court’s
hold on the water rule.
Will the EPA regulate carbon di-
oxide? Mr. Pruitt says he won’t
prejudge the question. “There will
be a rule-making process to with-
draw those rules, and that will
kick off a process,” he says. “And
part of that process is a very care-
ful review of a fundamental ques-
tion: Does EPA even possess the
tools, under the Clean Air Act, to
address this? It’s a fair question to
ask if we do, or whether there in
fact needs to be a congressional
response to the climate issue.”
Some might remember that even
President Obama believed the ex-
ecutive branch needed express
congressional authorization to reg-
ulate CO2—that is, until Congress
said “no” and Mr. Obama turbo-
charged the EPA.
Among Mr. Pruitt’s top priori-
ties is improving America’s water
infrastructure. “I’m going to be ad-
vancing this with the president,
this idea that when we talk about
investing in infrastructure, we
need to look more broadly than
bridges and roads,” he says. “Look
at what happened in Flint,” the
Michigan town where lead was
found in the water supply. “Look
at what is happening in Califor-
nia,” where the Oroville Dam’s fail-
ure endangers tens of thousands of
homes.
Mr. Pruitt defies the stereotype
of the fierce conservative who
wants to destroy the agency he
runs. Nonetheless, he is likely to
encounter considerable hostility.
The union that represents the EPA’s
15,000-strong bureaucracy urged its
members to besiege their senators
with calls this week asking them to
reject Mr. Pruitt’s appointment.
There are plenty of sessions on the
connections that music, art and cul-
ture have with civil rights. Very little
programming, however, is devoted to
actually explaining to students what
civil rights are and what their place is
in this country’s political tradition.
Yet the continuing quest to fulfill
America’s founding promise is unin-
telligible without a grasp of how civil
rights are grounded in the Declara-
tion of Independence and the Consti-
tution. Or without an understanding
of the often-heroic struggle for civil
rights over the course of American
history—the abolition movement, the
Civil War, the great Reconstruction
constitutional amendments, the
grievous setback of Jim Crow, the
modern civil-rights movement, the
landmark Supreme Court cases like
Brown v. Board of Education.
Instead of teaching, the school’s
aim seems to be hammering home to
students that racism plagues America
and will persist until white people
admit their unjust privilege, renounce
their unearned power, and make
amends for the entrenched oppres-
sion from which they continue to
profit handsomely. This despite the
school board’s written policy to pro-
vide a “balanced view” on “contro-
versial issues,” and the seminar’s
stated purpose “not to promote the
philosophy of one political party or
another.”
On Monday a group of concerned
New Trier parents will make a final
attempt to persuade the school board
to alter the seminar’s programming
to include a diversity of views about
race and rights in America. The par-
ents have proposed, for example, in-
viting black conservative intellectu-
als—such as my Hoover Institution
colleague Shelby Steele and this
newspaper’s Jason Riley—or people
OPINION
(The effort didn’t have much effect:
The vote was nearly along party
lines, with only two Democrats and
one Republican breaking ranks.)
These bureaucrats have the ability
to sabotage his leadership. That’s
what happened to Mrs. Gorsuch.
She went to war with the bureau-
cracy, and the bureaucracy won.
Mr. Pruitt wants progress. “I am
committed to the role of this
agency,” he says. “The administra-
tion is committed to the role of
this agency. There is so much to
accomplish. So its important that
the career staff here at the EPA
know this isn’t a disregard for the
agency, it’s a restoration of its pri-
orities.”
H
e says EPA employees ought
to be able to embrace his
priorities: “Think about how
tangible it would be to the citizens
of Washington state to finally have
the Hanford nuclear site cleaned
up. Think about how tangible it
would be to the citizens along the
Hudson River, to fix that pollution.
These are some of the most direct
things we can do to benefit our
environment. That ought to get
people at the agency excited. It
ought to get people in this country
excited.”
Mr. Pruitt has read those laws
his agency is charged with enforc-
ing, and they guide another major
change: a rebalancing of power be-
tween Washington and the states.
“Every statute makes clear this is
supposed to be a cooperative rela-
tionship,” he explains, “that Con-
gress understood that a one-size-
fits-all model doesn’t work for
environmental regulation, and that
the state departments of environ-
mental quality have an enormous
role to play.”
He faults President Obama’s EPA
for its “attitude that the states are
a vessel of federal will. They were
aggressive about dictating to the
states and displacing their author-
ity and letting it be known they
didn’t trust the states.” Mr. Pruitt
has numbers to back up the claim:
During the combined presidencies
of George H.W. Bush, Bill Clinton
like Pastor Corey Brooks, the director
of Project Hood, which seeks to end
violence and build communities on
Chicago’s South Side.
So far, these efforts have been met
with stonewalling and vitriol. On Feb.
6, a group of recent New Trier gradu-
ates—some of whom helped plan the
seminar day—published an open let-
ter to explain why the parents’ pro-
posals are unreasonable and im-
moral. The letter opens with a long
quotation from Martin Luther King
Jr.’s 1963 masterpiece, “Letter From
a Birmingham Jail.” The implicit mes-
sage is that the New Trier parents
Notable & Quotable: Novak on Democracy
From “Firm Foundations: Democ-
racy, Capitalism and Morality,” by
Michael Novak in The Wall Street
Journal, Dec. 27, 1994. The full arti-
cle is available at WSJ.com/opinion:
My own field of inquiry is theol-
ogy and philosophy. From the per-
spective of these fields, I would not
want it to be thought that any sys-
tem is the Kingdom of God on Earth.
Capitalism isn’t. Democracy isn’t.
The two combined are not. The best
that can be said for them (and it is
quite enough) is that, in combina-
tion, capitalism, democracy, and plu-
ralism are more protective of the
rights, opportunities, and conscience
of ordinary citizens (all citizens)
than any known alternative.
Better than the Third World econ-
omies, and better than the socialist
economies, capitalism makes it pos-
sible for the vast majority of the
poor to break out of the prison of
poverty; to find opportunity; to dis-
cover full scope for their own personal
Saturday/Sunday, February 18 - 19, 2017 | A11
KEN FALLIN
and George W. Bush, the EPA im-
posed five federal air-quality im-
plementation plans on states. Mr.
Obama’s EPA imposed 56.
States’ rights were the motivat-
ing impulse behind Mr. Pruitt’s
lawsuits against the Obama admin-
istration, and he has plenty of ex-
amples of the benefits of letting
states take the lead on pressing
environmental problems. He men-
tions the progress that a state co-
alition has made on improving the
habitat of the lesser prairie
chicken, a threatened species.
States have also clubbed together
to tackle water pollution in the
Chesapeake Bay.
“There is this attitude that has
grown of late that Oklahomans and
Texans and Coloradans really don’t
care about the air they breathe or
the water they drink,” he says.
“That’s just not the case.” As a
demonstration of his commitment
to the devolution of power, he
pledges to vigorously defend the
portion of the EPA’s annual $7 bil-
lion budget—roughly half—that
goes to the states as funds and
grants: “This is the front line of a
lot of the work on air and water
quality and infrastructure, and its
very important that money con-
tinue.”
Mr. Pruitt argues that his re-
newed focus on statutes and feder-
alism will help produce regulatory
certainty, which will be good for
business: “The greatest threat
we’ve had to economic growth has
been that those in industry don’t
know what is expected of them.
Rules come that are outside of
statutes. Rules get changed mid-
way. It creates vast uncertainty
and paralysis, and re-establishing
a vigorous commitment to rule of
law is going to help a lot.”
His focus on jobs and the econ-
omy sets him apart from some
past EPA administrators. “I reject
this paradigm that says we can’t
be both pro-environment and pro-
energy,” he says several times dur-
ing the interview. “We are blessed
with great national resources, and
we should be good stewards of
those. But we’ve been the best in
are comparable to the “white moder-
ate” King reproaches for preferring
order to justice. King’s admonition to
the comfortable—to imagine them-
selves in the place of the persecuted
and downtrodden—is a timeless mes-
sage, but inapt for the situation. New
Trier failed to teach the letter writers
the distinction between political ac-
tivism and education.
The seminar day presupposes that
the pervasiveness and potency of rac-
ism in America are facts beyond dis-
pute, rather than hypotheses to be
critically examined. That’s why the let-
ter writers dismiss the parents’ desire
economic initiative; and to rise into
the middle class and higher. . . .
[One] service to capitalism that
democracy performs better than dic-
tatorship draws upon its representa-
tional function. A free economy has
a great many parts, and a parliament
or representative congress tends to
represent all these parts. Thus in a
democracy every part of the econ-
omy has at least some active
voice. . . .
Another service provided by capi-
talism to democracy is less well un-
derstood. The founders of the U.S.
understood it very clearly, however.
. . . Envy, it turns out, is the most
destructive social passion—more so
than hatred, which is at least visible
and universally recognized as evil.
Envy seldom operates under its own
name; it chooses a lovelier name to
hide behind, and it works like a
deadly invisible gas. In previous re-
publics, it has set class against
class, sections of cities against other
sections, leading family against
the world at showing you do that
while also growing jobs and the
economy. Too many people put on
a jersey in this fight. I want to
send the message that we can and
will do both.”
Leading the EPA will be a role
reversal for the former attorney
general, in that it will place him
on the receiving end of litigation.
Lawsuits are proving to be the fa-
vorite weapon of the anti-Trump
“resistance,” and environmental
groups have declared their inten-
tion to bury Mr. Pruitt in court fil-
ings if he attempts to “roll back”
their agenda. Yet he’s sanguine at
the prospect. “Most lawsuits
against the EPA historically have
come either because of the
agency’s lack of regard for a stat-
ute, or because the EPA failed in
an obligation or deadline,” he
says. “But we protect ourselves by
hewing to the statutes. It will
prove very difficult for environ-
mental groups to sue on the
grounds that they think one prior-
ity is more important than an-
other—because that is something
that really is at the discretion of
agency.”
S
peaking of lawsuits, Mr.
Pruitt says he plans to end
the practice known as “sue
and settle.” That’s when a federal
agency invites a lawsuit from an
ideologically sympathetic group,
with the intent to immediately set-
tle. The goal is to hand the litiga-
tors a policy victory through the
courts—thereby avoiding the rule-
making process, transparency and
public criticism. The Obama ad-
ministration used lawsuits over
carbon emissions as its pretext to
create climate regulations.
“There is a time and place to
sometimes resolve litigation,” Mr.
Pruitt allows. “But don’t use the
judicial process to bypass ac-
countability.” Some conservatives
have suggested the same tactic
might be useful now that Republi-
cans are in charge. “That’s not go-
ing to happen,” he insists. “Regu-
lation through litigation is simply
wrong.” Instead, Mr. Pruitt says,
the EPA will return to a rule-mak-
ing by the book. “We need to end
this practice of issuing guidance,
to get around the rule-making
procedure. Or rushing things
through, playing games on the
timing.”
For similar reasons, Mr. Pruitt
plans to overhaul the agency’s pro-
cedure for producing scientific
studies and cost-benefit analyses.
“The citizens just don’t trust that
EPA is honest with these num-
bers,” he says. “Let’s get real, ob-
jective data, not just do modeling.
Let’s vigorously publish and peer-
review science. Let’s do honest
cost-benefit work. We need to re-
store the trust.”
Ms. Strassel writes the Journal’s
Potomac Watch column.
for a multiplicity of views as an effort
“to distract the conversation.”
Let’s hope that the concerned New
Trier parents succeed Monday in
teaching the New Trier school board
about education’s proper purpose. If
not, maybe the best thing might be
for more families to follow the parent
group’s advice: “Excuse your child for
the day, and encourage him or her to
volunteer”—perhaps with Corey
Brooks and Project Hood.
Mr. Berkowitz is a senior fellow at
the Hoover Institution, Stanford Uni-
versity.
leading family. For this reason, the
early Americans stood against divi-
sion (“divided we fall”) and sought
ways to neutralize envy.
To accomplish this task, the
Founders determined that a republic
cannot be built upon the clerical
(priestly) class; nor upon the aristoc-
racy and military (whose interests in
“honor” caused so many rivalries
and contestations); but upon a far
humbler and typically more despised
class, those engaging in commerce.
They opted for what they called “a
commercial republic.” . . .
When all the people in the repub-
lic, especially the able-bodied poor,
see that their material conditions are
actually improving from year to year,
they are led to compare where they
are today with where they would like
to be tomorrow. They stop compar-
ing themselves with their neighbors,
because their personal goals are not
the same as those of their neighbors.
They seek their own goals, at their
own pace, to their own satisfaction.
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
A12 | Saturday/Sunday, February 18 - 19, 2017 * *** THE WALL STREET JOURNAL.

OPINION
REVIEW & OUTLOOK LETTERS TO THE EDITOR

Repeal and Replace Panic Small Minority of Workers Binds the Majority

I
n the 2009 ObamaCare debate, White created a one-way funding ratchet. Regarding Matt Patterson’s “These I’m a home-care worker and a
House aide David Plouffe told nervous Medicaid is jointly financed by the federal Minnesota Workers Want Nothing to proud union member. Minnesota’s
Do With the SEIU” (Cross Country, Bureau of Mediation Services dis-
Democrats “no bed-wetting,” meaning government and states, and the feds paid
Feb. 11): Minnesota’s Democratic Gov. missed the decertification bid Mr.
keep calm and all will be about 60% on average under Mark Dayton and the state’s legisla- Patterson’s Center for Worker Free-
well. House Democrats went The GOP health reform the old system. That arrange- tors four years ago designated the dom and MNPCA.org pushed because
on lose 63 seats in 2010, but needs to give states the ment still exists, but Obama- state’s personal-care assistants to be they fell several thousand signatures
the double irony is that Mr. Care paid a 100% “match” for executive branch employees, solely short of the number required to call a
Plouffe’s advice now applies freedom to fix Medicaid. the newly eligible to induce for the purpose of unionizing; and new vote.
to those reporters and liber- states to expand. This rate is the Service Employees International Home-care work is hard, with or
als who seem to be invested never supposed to phase Union then won a low-turnout, quick without a union. Without my union, I
in the failure of the GOP’s version of health- down lower than 90%. and perhaps dirty election to repre- underwent a hysterectomy and re-
care reform. That means ObamaCare’s new beneficia- sent and collect dues from personal- turned to work the next day because
Every day brings a new story about Republi- ries are far more fiscally valuable to states care providers. Voter turnout in the I couldn’t afford to take days off and
election was just 22%. Eighty-seven had no paid leave. I had to choose
cans in disarray, the “mirage” of the GOP’s re- than Medicaid’s original purpose: the most
percent of Minnesota’s home-care which bills to pay and which to push
form and the impossibility of change. Donald vulnerable women, children and individuals providers didn’t vote or voted against off for another month. With my
Trump hasn’t been President for even a month, with disabilities. Some overspending states unionization, but all must pay union union, I won paid time off and a
folks. The reality is that Congress is on sched- like Connecticut have even cut benefits for dues out of their payments from wage floor increase from $9 per hour
ule, progress is underway, and the many poten- the poor rather than give up the ObamaCare Medicaid. to $11 per hour (which will rise fur-
tial problems are avoidable. windfall. The SEIU is collecting union dues ther to $13 per hour if our new con-
i i i If Republicans were to restore Medicaid’s in Minnesota from individual home- tract is ratified).
Behind the scenes, members and staff are be- priorities or downsize eligibility, about 14 mil- care providers who are receiving tax- The improvements we’ve won by
ing briefed on options and the House will release lion people could lose coverage, but the larger payer money through Medicaid, and coming together to form our union
a consensus proposal after the Presidents Day problem is that Governors would face a larger SEIU then is free to direct that cash are for everyone, whether they
recess. The details matter and are under discus- hole in their budgets. Medicaid’s major provider to campaigns of politicians who are choose to be a union member or not.
pro-SEIU. The 87% of Minnesota per- Higher wages, paid time off (a first
sion, but the outlines are emerging. Congress constituents—hospitals—are also politically sonal-care assistants who didn’t vote for Minnesota home-care workers),
will use the reconciliation budget maneuver to powerful. to join SEIU cannot subsequently vote new training opportunities and an
bypass the Senate filibuster and pass a version The 2015 repeal bill phased out the Medicaid with their feet to leave the union. online matching tool to help home-
of the 2015 repeal bill that President Obama ve- expansion over two years, but Republicans may If America needs one solid internal care clients find caregivers are victo-
toed. This time they’ll incorporate as many re- need to forgo immediate cuts to avoid Senate wall of separation, it is between pub- ries for all home-care workers, not
placement components as the rules allow to defections. The more important goal is to lic-employee unions and their politi- just union members. Now why didn’t
bring more predictability to insurance markets. change the incentives over the long term and cal benefactors who exchange cash Mr. Patterson mention that?
Leaders are calling this “repeal plus,” and it will eliminate the perverse formulas that discount and votes at the expense of taxpayers SHAQUONICA JOHNSON
be followed by more legislation. the welfare of the truly needy. and workers caught in the union web. Vice President (PCA)
The GOP plans to replace ObamaCare’s com- A helpful revolution in Medicaid would be to FRANK ALLEN SEIU Healthcare Minnesota
Charlotte, N.C. St. Paul, Minn.
plicated income-based subsidies with a tax end the match rate that rewards higher spend-
credit that floats based on family size and age ing and move to block grants. States would get
(a proxy for health status). The credit will be some fixed pot of money annually, determined
available to anyone who lacks job-based cover- by how many people are enrolled. The pots Manipulation and a Currency’s Market Value
age and is ineligible for Medicare or Medicaid. might be expensive in the early years, but states We have been barking up the Regarding Judy Shelton’s “Cur-
Replacing ObamaCare’s central planning with would become accountable for marginal per wrong tree. Regarding “U.S. Eyes New rency Manipulation Is a Real Prob-
patient-centered choice and flexibility is a pri- capita spending growth over time. Governors Plan to Press China” (page one, Feb. lem” (op-ed, Feb. 14): Ms. Shelton de-
ority. So are an expansion of health-savings ac- can be assuaged by ending Medicaid’s com- 14): Currency manipulation by the scribes China’s policy of not allowing
counts and high-risk pools for people with pre- mand-and-control regulatory model, freeing Chinese government isn’t an issue; all more than a 2% daily change in the
existing conditions. them to use new tools to control costs. governments manipulate their cur- dollar/yuan rate as an example of cur-
The latest occasion for micro-panic is the The Foundation for Government Account- rency’s exchange rate, and some may rency manipulation. It looks to me
even adopt a fixed exchange-rate pol- more like an attempt to avoid wild
House Freedom Caucus’s declaration that they ability has proposed a temporary enrollment
icy. The issue is that the Chinese gov- market fluctuations.
may oppose repeal plus. This is lousy politics freeze for new Medicaid, which is a shrewd ernment doesn’t allow free selling Of greater concern is her belief
that would set up the GOP to take the blame idea. No new applications for the expansion and buying of its currency, not even that currency devaluation is somehow
for the people hurt by ObamaCare’s implo- would be approved, and gradually enrollment by its own people. The argument the road to riches because it stimu-
sion, which is why there’s little support for would fall as people naturally move up the which has long been held by the U.S. lates a country’s exports. She forgets
the strategy in the larger GOP conference. And income ladder and qualify out. The goal isn’t government, including the Trump ad- the other side of the equation. When
some Freedom Caucusers are hedging their to strip people from the rolls but to ensure ministration, is that the Chinese gov- a country’s currency is devalued, its
ultimatum: They say they’ll support a bill that fewer people need to be dependant on ernment makes the yuan’s valuation imports become more expensive.
that’s “at least as good as” the 2015 repeal, government. artificially low against the U.S. dollar. Higher prices push a country’s stan-
specifics to come. Health and Human Services Secretary Tom This argument is flawed because nei- dard of living downward. If the U.S.
ther the Chinese government nor the devalued its currency, we would have
The more divisive GOP debate isn’t the indi- Price has been conducting a goodwill tour of
American government knows whether more exports and export-related jobs,
vidual insurance market. It’s Medicaid. Capitol Hill, but presidential leadership is the yuan is undervalued or over- but import prices would go up. There
ObamaCare opened enrollment in this former needed to defuse the tensions and resolve the valued. In order to know this, we would be fewer import-related jobs
safety-net program for the poor to all low-in- policy debates. Meantime, if Republicans were need a free market. The equilibrium and generally higher prices and a
come able-bodied adults. This year for the moving faster the stories would be about reck- reached by numerous sellers and buy- lower standard of living. There is
first time the U.S. will now spend more on lessness and human disregard. Careful, deliber- ers in the market will tell us what its simply no way for a country to cheat
Medicaid than national defense, but this tra- ative governing is what Americans are sup- valuation should be. its way to prosperity by manipulating
jectory is hard to change because ObamaCare posed to want from Congress. PROF. SHAOMIN LI its currency.
Old Dominion University JOHN PEARSON
Norfolk, Va. Alexandria, Va.
Trump’s Best Tweet
D
onald Trump’s Twitter habits often get Maduro government on Wednesday shut down
him into trouble, but the President has CNN En Español, the nation’s last remaining Dean Acheson Was a First-Rate Statesman
outputted no better tweet than this source of independent news. Peggy Noonan’s “What Comes Af- for his “first-rate second-rateness.”
one Wednesday: “Venezuela But President Trump no- ter Acheson’s Creation?” (Declara- Come now. The record shows that he
should allow Leopoldo Lopez, He speaks up for ticed. That tweet demanding tions, Feb. 11) is a welcome reminder had the rare ability to combine a
a political prisoner & hus- freedom in Venezuela, the release of Leopoldo López of Dean Acheson’s decisive role and grasp of the broad historical circum-
band of @liliantintori (just belies Mr. Trump’s reputation wise guidance in the early period of stances in which the U.S. found itself
met w/ @marcorubio) out of unlike his predecessor. for being soft on authoritarian the Cold War. But she gives him the in the postwar period with a practi-
prison immediately.” leaders. On Monday the back of her hand by noting that he cal understanding of how to con-
This was one Trump tweet Trump Treasury Department was “not a grand strategist” but struct and implement long-term pol-
“more a manager” and inspirational icy—that is to say, he was a
that didn’t make the front pages, but it might put Venezuelan Vice President Tareck El Ais-
statesman. Every grand strategy of
make a difference for the people of Venezuela, sami on its sanctions list for allegedly aiding the Cold War period—containment,
who have suffered immensely under the faux drug traffickers. W. Wilson and the Modern NATO, the postwar economic order,
democratic dictatorship of Nicolás Maduro. What a contrast this is to the help and sup- the Marshall Plan and more—bore
Leopoldo López was the leader of the Vene- port Venezuelans got from Barack Obama and Lack of Consensus Values his mark.
zuelan opposition party Popular Will until Mr. John Kerry. Which is to say, essentially none, In Robert D. Kaplan’s review of Often criticized for not growing
Maduro railroaded him into a 13-year prison notably on the issue of recalling the despised Tony Smith’s “Why Wilson Matters” out of a Cold War mentality, he
sentence two years ago. Maduro government in a popular referendum. (“How to Spread Our Values,” Book- stood his ground for containment
The media have reported on Venezuela’s de- Last year the government-controlled national shelf, Feb. 6), the fallacy is that there to the end of his life. As Henry Kis-
scent into status as an economic basket case, election council slow-walked a decision to are (agreed-upon) values. I argue that singer put it: “And history gave
few, if anyone, in this dreadfully di- Dean Acheson its highest acco-
including shortages of basic foodstuffs and permit the referendum, which never hap-
vided country could espouse “our” lade—it proved him right.” That’s
medical supplies. The Maduro government’s pened. International pressure, led by the values that would be agreed upon by second-rate?
survival strategy has been to tough out criti- Obama government, would have helped. It those on the “other side.” Ex-presi- JEFFREY SALMON
cism and let the Venezuelan catastrophe fade never came. dent Obama used that word fre- Alexandria, Va.
from international view. Credit is due the Trump Presidency for pick- quently to disparage those who dis-
Taking no chances of anyone noticing, the ing up this badly dropped ball. agreed with him—Republicans, for
example. I believe I know what some The Greenies Had to Trash
of those Christian values of the U.S.
This Sacred Land to Save It
Michael Novak are. I’d also argue that President
Obama couldn’t generally agree even Regarding your editorial “Dakota

O
ver a long life Michael Novak traveled portant work, “The Spirit of Democratic Capi- that there are Christian values. I be- Access Dumping Ground” (Feb. 8):
lieve that the various factions of each This grass-roots environmental move-
from writing speeches for George talism,” which changed America’s public de-
political party could agree on 10 val- ment certainly forgot about the
McGovern to serving as Ronald Rea- bate when it was published in 1982. ues. If President Trump could tweet grass!
gan’s ambassador to the U.N. “Democratic capitalism,” he his 10 values, then challenge Mr. DAVID J. GROSS
Commission on Human A thinker who wrote, is “neither the King- Obama to do the same, the resulting St. Augustine, Fla.
Rights, reflecting an intellec- argued for the morality dom of God nor without sin. war of words would be educational.
tual journey from socialism Yet all other known systems THEODORE M. WIGHT
to capitalism. He died Friday of free markets. of political economy are Seattle Pepper ...
at age 83, but in many ways worse. Such hope as we have And Salt
he remained the boy forged for alleviating poverty and Mr. Kaplan fails to mention one of
in Johnstown, Pennsylvania: a working-class for removing oppressive tyranny—perhaps President Woodrow Wilson’s major THE WALL STREET JOURNAL

town of steel mills, coal mines and immigrant our last, best hope—lies in this much de- accomplishments: the introduction of
racial segregation in the federal gov-
Slovak families trying to find their way in this spised system.”
ernment. Perhaps it wasn’t men-
new land called America. Too many religious leaders, Novak argued, tioned in the book. This move proba-
Raised as a Roman Catholic, Novak believed have no understanding of how economies bly helped foster the resurgence of
as a young man that socialism was the ideal work, and thus they focus on redistributing the Ku Klux Klan and certainly did
economic arrangement. But he began to notice wealth without regard for how wealth is cre- untold damage to race relations in
a flaw: While socialism sounded good in ated. As for business leaders, he encouraged this country. For the record, Presi-
theory, in practice it didn’t work—and non- them to think of their careers as a calling, and dent Wilson was a Democrat.
elites fared the worst. the rest of us to recognize that capitalists are WILLIAM HAM
Capitalism had little high-minded theory, “the main hope” for billions around the world Southaven, Miss.
but in practice it literally provided the goods. still locked in poverty.
If ordinary folks did so much better under cap- Michael Novak also wrote for these pages, Letters intended for publication should
italism, maybe the caricatures—e.g., that it is and we reprint one of his pieces nearby. As we be addressed to: The Editor, 1211 Avenue
of the Americas, New York, NY 10036,
all based on greed—were wrong. Maybe free mourn his loss, we also celebrate a life dedi- or emailed to wsj.ltrs@wsj.com. Please
markets had their own virtues and were defen- cated to the same proposition put forth in the include your city and state. All letters
sible, and even superior to other economic Declaration of Independence: that the Creator are subject to editing, and unpublished “What we did for our country was
systems on moral grounds. fitted everyone to flourish in freedom—and letters can be neither acknowledged nor pretty amazing, but what we did for
returned.
From this recognition sprang his most im- America was founded to prove it. retailers exceeds my wildest dreams.”
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
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THE WALL STREET JOURNAL.
The White House Needs an Injection of Calm
DECLARATIONS
By Peggy Noonan
M
ost people don’t live
near Washington.
They’re not connected
to it. They see a new
White House on
screens—computer, TV. They don’t
listen to all the chatter but some-
times turn the sound up.
Over weeks you get a general pic-
ture. It yields an impression. The im-
pression lasts.
One month in, what impression
would people be getting of the Trump
administration? Early dynamism fol-
lowed by mess. Good executive orders
followed by bad, the choice of Neil
Gorsuch for the high court followed
by the departure of Michael Flynn
from the National Security Council.
Trump is an unusual
character. He’d benefit
if his staff included
some conventional ones.
Nothing about the story of Mr.
Flynn is satisfyingly clear. Most peo-
ple would say discussing the views of
the incoming administration with the
Russian ambassador would be an an-
odyne act—harmless, maybe even
helpful. But few know exactly what
was said. That he misled the vice
president about discussing sanctions
is bad. That the vice president later
vouched for him is embarrassing.
That Mr. Flynn’s phone conversations
were subject to surveillance is
strange. That information about the
call or calls was leaked to the press is
unprecedented.
Two mysteries need to be solved,
and if it takes a formal congressional
investigation, then so be it. The first
is whether there were indeed unusual
How to Make the Voice of America Come Through Loud and Clear
By Robert Reilly
A
fter Ronald Reagan was elected
in 1980, a Voice of America
broadcast said that “now for the
first time, the United States will have
as president a former actor, a di-
vorced man, and the son of an alco-
holic.” When I handed this transcript
to my boss, Charles Wick—the new di-
rector of the U.S. Information Agency,
which then oversaw the broadcaster—
he exploded with anger.
I wonder how President Trump
would react if he saw the Robert De
Niro video that Voice of America’s
Ukrainian service posted online last
October, adding subtitles and VOA’s
The broadcaster’s purpose
isn’t just to entertain, or
even to inform. It’s to wage
the battle of ideas.
logo. In the video, which was created
by an initiative called Vote Your Fu-
ture, Mr. De Niro unloads about Mr.
Trump: “He’s so blatantly stupid; he’s
a punk; he’s a dog; he’s a pig; he’s a
con”—and so forth. No context was
provided for this rant, and the Ukrai-
nian service took it down after being
criticized. One doesn’t have to be a
Trump supporter to ask why a tax-
payer-funded news service, whose
job is to tell America’s story to the
world, would do this.
Voice of America began to lose its
mission when the U.S. Information
Agency was abolished in 1999. Instead
it was placed under an eight-person,
part-time Broadcasting Board of Gov-
ernors. Having so many executives in
charge created a lot of confusion, but
to make matters worse, several gover-
nors had made their fortunes in me-
dia and sought to apply commercial
criteria to the Voice of America.
PUBLISHED SINCE 1889 BY DOW JONES & COMPANY
Rupert Murdoch
Executive Chairman, News Corp
Gerard Baker
Editor in Chief
Matthew J. Murray
Deputy Editor in Chief
DEPUTY MANAGING EDITORS:
Michael W. Miller, Senior Deputy;
Thorold Barker, Europe; Paul Beckett,
Washington; Andrew Dowell, Asia;
Christine Glancey, Operations;
Jennifer J. Hicks, Digital; Neal Lipschutz,
Standards; Alex Martin, News; Ann Podd,
Initiatives; Andrew Regal, Video; Matthew Rose,
Enterprise; Stephen Wisnefski, Professional News
Paul A. Gigot, Editor of the Editorial Page;
Daniel Henninger, Deputy Editor, Editorial Page
WALL STREET JOURNAL MANAGEMENT:
Suzi Watford, Marketing and Circulation;
Joseph B. Vincent, Operations;
Larry L. Hoffman, Production
EDITORIAL AND CORPORATE HEADQUARTERS:
1211 Avenue of the Americas, New York, N.Y., 10036
Telephone 1-800-DOWJONES
* * * *
Russian contacts with the Trump
campaign and transition, and
whether they suggest an unhealthy
relationship between the president
and Russia. The second is: Who is lis-
tening to, and leaking information to
the press about, not only Mr. Flynn’s
conversations but the president’s
phone calls with foreign leaders? And
what is their motive?
Is this, as some suggest, “deep
state” revenge for the haughty, dis-
missive way Donald Trump spoke of
GETTY IMAGES
the U.S. intelligence community dur-
ing and after the campaign? Is it
driven by sincere and legitimate anxi-
eties that the new White House has
an unknown relationship with Vladi-
mir Putin’s government that poten-
tially compromises U.S. security, in-
dependence of judgment and freedom
of action? Is it driven by the antipa-
thy of the permanent government to-
ward Mr. Putin, and a desire to bring
down those, like Mr. Trump, who
hope for closer relations with Russia?
Is it that they’ve seen—and listened
to—enough of Mr. Trump to think
he’s a screwball, period, and a threat
to the republic?
It is a terrible thing if suddenly, in
America, there is a government
within the government that hates the
elected government—and that se-
cretly, silently, and with no account-
ability, acts on it.
The president complains about
leaks in angry tweets. They look
weak, as if he’s saying: Hey, America,
you better solve this problem!
No, buddy, you solve it.
The Trump administration should
shock everyone by demanding a ma-
jor congressional investigation into
the whole dangerous mess. The
White House ought to welcome the
opportunity to clear the air on the
first question and get to the bottom
of—and stop—the second.
Back to the screens.
There’s a lot going against the new
White House—the mainstream media,
the spies, the antic nature of the
president himself, the ambivalence of
his own party, the rise of the passion-
ate left.
As a result, who listens became
less important than how many listen
or the content the VOA was broad-
casting. Youth audiences became a
primary target. In 2002, Voice of
America’s Arabic service was elimi-
nated altogether and replaced with a
pop-music station, Radio Sawa—and
in the middle of a war, no less. As
Voice of America’s director at the
time, I questioned the wisdom of
this decision. The chairman of the
board justified it by saying that
“MTV brought down the Berlin
Wall.”
What was the effect of this super-
ficiality? A few years later, a Jorda-
nian journalist named Jamal Nimri
summed it up to me by saying: “Ra-
dio Sawa is fun, but it’s irrelevant.”
Others were less charitable. In 2013,
then-Secretary of State Hillary Clin-
ton told Congress that the Broadcast-
ing Board of Governors “is practically
defunct in terms of its capacity to be
able to tell a message around the
world. So we’re abdicating the ideo-
logical arena, and we need to get
back into it.”
Thanks to the work of Rep. Ed
Royce (R., Calif.), chairman of the
House Foreign Affairs Committee,
there is a chance that the Voice of
America can finally get back into the
ideological arena. Last December,
Congress passed Mr. Royce’s bill tak-
ing authority over the broadcaster
away from the board of governors
and returning it to the executive
branch. Mr. Trump now has the au-
thority to appoint, with Senate con-
firmation, a full-time CEO who will
report to the president, just as cabi-
net secretaries do.
The first thing the Voice of Amer-
ica’s new leader will have to face is
how seriously disoriented the broad-
cast has become. Walter Issacson,
chairman of the Board of Governors
from 2010-12, once said something all
too typical: “We just want to get good
news, reliable news, and credible
Robert Thomson
Chief Executive Officer, News Corp
William Lewis
Chief Executive Officer and Publisher
DOW JONES MANAGEMENT:
Mark Musgrave, Chief People Officer;
Edward Roussel, Innovation & Communications;
Anna Sedgley, Chief Operating Officer & CFO;
Katie Vanneck-Smith, President
OPERATING EXECUTIVES:
Ramin Beheshti, Product & Technology;
Jason P. Conti, General Counsel;
Steve Grycuk, Customer Service;
Kristin Heitmann, Transformation;
Nancy McNeill, Advertising & Corporate Sales;
Jonathan Wright, International
DJ Media Group:
Almar Latour, Publisher; Kenneth Breen,
Commercial; Edwin A. Finn, Jr., Barron’s;
Professional Information Business:
Christopher Lloyd, Head;
Ingrid Verschuren, Deputy Head
OPINION
Reagan staff members James Baker III, Ed Meese and Michael Deaver at the
White House in 1981.
And another thing: the president’s
band of exotics.
Mr. Trump is an unusual character
and it’s no surprise he surrounded
himself with unusual characters.
They’re a band of outsiders with an
eye to the historical chance. They’re
a highly individualistic, highly idio-
syncratic crew.
They’re dressed like Supergirl at a
party; they glower around in skinny
ties and skinny suits with skinny
sideburns; they’re telling reporters to
please quote them when they say
“Shut up and listen.” They are
spoofed on TV because they’re so
easily spoofable.
And we see a lot of them. Some-
times they are explaining away their
boss’s faux pas. Sometimes they’re
explaining their own. We see them in
fiery, confrontational interviews.
They speak quickly, dramatically, viv-
idly.
They aren’t calming things down
and inspiring trust and confidence.
In fairness, they’re working in a
White House in which they cannot
confidently predict their own presi-
dent’s views, actions and statements.
They don’t necessarily know where
they stand, long term, with him or
one another. (He apparently likes
things loosey-goosey. He’s got what
he wanted.) They’re under heavy
pressure. And like their boss, they’ve
information out.” Reliable news was
always a part of American broadcast-
ing, but the mission is more. When
the Dalai Lama called Voice of Amer-
ica’s Tibetan service “the bread of the
Tibetan people,” and when Aung San
Suu Kyi called the Burmese service
“the hope of the Burmese people,”
they were not merely talking about
“news.”
News is something commercial
broadcasters can do well. Govern-
ment broadcasting is needed when
the U.S. wants to communicate a
message to a key audience that would
otherwise not hear it.
This is why the Voice of America
was never envisaged in its charter as
simply a news organization. Its duty
was always to reveal the character of
the American people and thereby the
underlying principles of American life.
What’s Behind the Border Tax Kabuki?
When it comes to
the politics of tax
reform, a vital
principle is always
to inject a big dis-
ruptive element
into the mix. That
BUSINESS
way members of
WORLD
the House and Sen-
By Holman W.
ate tax-writing
Jenkins, Jr.
committees can be
assured a fundrais-
ing bonanza from threatened busi-
ness and taxpayer groups.
When it comes to the policy mer-
its of tax reform, however, the oppo-
site principle applies. Don’t go out of
your way to create big winners and
losers. Don’t inject elements that un-
duly disrupt the business models
taxpayers have adopted in keeping
with the current tax code.
Tax reform should be win-win:
Everybody benefits from a flatter
rate structure, even if they lose their
favorite carve-outs, gimmes and de-
ductions. Everybody benefits from a
more efficient, dynamic, faster-
growing economy.
In a good tax reform, there should
be one large net loser: tax lawyers.
Which brings us to 2017’s big dis-
ruptive idea from the House GOP, the
border-adjustable corporate tax. For
the first time in 30 years, the tax-re-
form opportunity is upon us here in
the U.S. But first House Ways and
Means members must be allowed a
good, long shake of the money tree.
And border adjustability is tailor-
made for this purpose.
Big exporters like Boeing and GE
are guaranteed to speak up in its fa-
vor—and speaking up usually means
writing a check. That’s because, un-
der border adjustability, profits on
sales to foreigners are tax-free.
Even more deep-pocketed and
numerous are the idea’s opponents,
since imports would no longer be
deductible under the new corporate
Saturday/Sunday, February 18 - 19, 2017 | A13
never been there before.
But it may mean something that
the other night in a speech in Trump-
loving Oklahoma, I said of the presi-
dent’s colorful aides, “They should
get off TV,” and the room burst into
applause.
They should go and sit in their of-
fices and plan something. White
Houses, which are always dramatic
places that deal with daily crises,
don’t need more drama. They need
systems, order, process, calm. They
need clear lines of authority and re-
sponsibility.
Let the cabinet members, now that
they’re confirmed and so officially
exist, advance policy and explain
thinking. Let the president and the
vice president do the asserting and
context-giving.
I used to think White Houses
needed more independent, brilliant
people. This one needs more shy,
quiet, process people.
Give more attention to planning
than promotion and marketing. If you
plan better, you’ll need fewer cleanup
crews.
Sit down and have a cup of coffee.
Handle the incoming. There’s always
enough.
Since the president likes to be
compared to Ronald Reagan, and
since Reagan had the last unambigu-
ously successful modern presidency,
It owes its listeners the truth of how
free people live—and a corrective of
the distorted images that our own
popular culture sometimes creates,
which help inflame anti-American
sentiment. That is why news is not
enough.
Equally important, the Voice of
America is supposed to present and
explain the policies of the U.S. gov-
ernment through what is effectively
its “editorial page.” Such program-
ming offers the most direct means to
ensure that America’s friends and
foes know what Washington is doing
and why. Yet the broadcaster’s Policy
Office staff, which produces the edito-
rials, has been cut 50%. Symptomati-
cally, in 2008 Jeffrey Trimble, the
staff director of the board of gover-
nors at the time, said: “It is not in our
mandate to influence.” If this is so,
tax rate. Essentially imports would
be taxed at 20%. Wal-Mart and
most of the retail industry is op-
posed; the petroleum-refining in-
dustry is opposed; most of the
clothing and apparel industry;
much of the tourism and higher-ed-
ucation industries. Plus a variety of
conservative groups, including
some affiliated with the Koch
brothers, plan to attack the idea as
anticonsumer.
OK, with enemies like these, bor-
der adjustability was perhaps never
a real threat to make it through the
congressional sausage factory. But
oh, the fundraising gusher in the
meantime from those who have
something big to lose.
What of the merits? In essence,
border adjustability functions as a
consumption tax; to many pro-
growth types, a consumption tax is
the ideal tax system. Income would
be taxed only once, when it’s con-
sumed. Savings go untaxed until
spent on consumption.
Unfortunately, because it operates
at the corporate level, this form of
consumption tax falls short of the
ideal. Like a European value-added
tax, its cost would be deeply hidden
in the price of goods, thus easily
jacked up over time. Also, compared
with the current tax structure, busi-
nesses would see less incentive to
move abroad in search of lower
taxes, eroding a useful pressure on
politicians to be fiscally sane.
And because the tax would alter
the terms of trade, it would be ex-
pected to lead to a sharp increase in
the dollar. U.S. holders would suffer
large paper losses on their foreign
assets. Since many foreigners bor-
row in dollars too, a global debt cri-
sis might follow.
The tax might also violate World
Trade Organization rules, inviting
other countries to impose punitive
taxes on U.S. exports. In any case,
it would be a good investment of
time to look at the process by which
he accomplished it. Start with Mi-
chael Deaver’s memoir, “A Different
Drummer.” Deaver, along with Ed
Meese and James Baker, was one of
the famous troika that ran things. His
central insight: He was staff. His job
was putting out fires, not starting
them.
Mr. Baker, in his memoir, “Work
Hard, Study . . . and Keep Out of Poli-
tics!,” literally offers a step-by-step
guide in how to invent and organize
a functioning White House. He knew
it was a dramatic moment in history
and his president had been painted as
a dramatic figure—Hollywood actor
turned nuclear cowboy who’ll start a
war. So he kept the public part of the
White House low-key, organized and
focused. Not every pot had to be kept
on full boil.
The key decision that kept every-
thing working was that the first year
would be devoted to a single issue,
the economy, starting with tax cuts. If
you turn the economy around, the
president thought, everything else
becomes possible.
Mr. Baker spent most of his time
with the president or in his own of-
fice, at his desk or on his couch.
There, about once a week, he spoke
on background to reporters from the
big news organizations. He was giv-
ing them insight into what they were
seeing. He was usually candid and al-
ways candid-seeming. What he was
giving them was not dumb, vulgar
spin but insight. He didn’t constantly
do TV, so interviewers came to see
him as a catch and treated him with
respect.
That was good for the administra-
tion: Important journalists started to
understand what it was doing and
why. And it was good for Jim Baker.
In the ideological abattoir that was
the Reagan White House it wasn’t
usually his blood that was on the
floor.
I know, different world. But some
things about that world are worth re-
visiting, and can be modified to fit
the screen.
why bother? Why should the taxpayer
keep funding Voice of America?
VOA’s job should be to advance the
justice of the American cause while
simultaneously undermining our op-
ponents’. This was very successful
during the Cold War. Why not imple-
ment a refashioned version of the
strategy today?
Information warfare is being
waged against the U.S. by Islamic
State, China and Russia, among oth-
ers. President Trump should nominate
someone to lead the Voice of America
who knows how to fight such wars—
just as well as Defense Secretary Jim
Mattis knows how to fight kinetic
ones. Together, they could win.
Mr. Reilly is director of the West-
minster Institute. He served as direc-
tor of Voice of America, 2001-02.
U.S. tax reforms are often copied
abroad. A general trade war might be
in the offing if other countries adopt
their own import-taxing reforms.
Still, border adjustability certainly
qualifies as a “big idea,” and House
Ways and Means Chairman Kevin
Brady and Speaker Paul Ryan like big
ideas. But big ideas are also ripe to
be traded away in pursuit of tax-re-
form consensus. Key players can feel
they dodged a bullet. Border adjust-
ment may turn out to be a bit of
roughage that helps the body politic
digest the once-in-a-generation tax-
reform opportunity.
But where can revenue scorers
get the $1 trillion over 10 years the
border tax was supposed to raise?
Well, ahem, a carbon tax is also a
consumption tax. To make it accept-
able to free marketers, it would have
to come with a full stop to all cli-
mate-related mandates and subsidies
including fuel-mileage rules. It
would also have to be clear that all
carbon-tax proceeds are being used
to cut payroll or income taxes.
Otherwise conservatives who’ve
spent their lives fighting the climate
wars will see only a spontaneous
surrender to the global warming
alarmists, whom they’ve been de-
feating for 30 years. Lost from view
will be a carbon tax’s comparative
virtues—it amounts to a broad-based
consumption tax that also would be
highly visible to the consumer and
won’t become an easily jacked-up
growth hormone for big government.
How much would be needed if the
goal were to offset a 20% import
tax? The equivalent of 13 cents per
gallon of gasoline.
As a bonus, such a proposal would
be a test of sincerity for those liber-
als who say they care about the cli-
mate but perhaps only care about
green pork barrel for their heavily
subsidized alternative-energy cro-
nies.
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
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A14 | Saturday/Sunday, February 18 - 19, 2017 * *** THE WALL STREET JOURNAL.

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SHIPPING FEW WOMEN HEAD TO SEA B4
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DJIA 20624.05 À 4.28 0.02% NASDAQ 5838.58 À 0.4%
Prices Leave Drillers in Crude Quandary
Stubborn market,
climate rules cloud
equation on bringing
oil up out of ground
A new era of low crude
prices and stricter regulations
on climate change is pushing
energy companies and re-
source-rich governments to
confront the possibility that
some fossil-fuel resources will
By Sarah Kent,
Bradley Olson
and Georgi Kantchev
remain in the ground indefi-
nitely.
In a signal that the pros-
pect is growing more likely,
Exxon Mobil Corp. has said
that as many as 3.6 billion
barrels of oil that it planned to
produce in Canada in the next
few decades is no longer prof-
Parsing the
Market’s
Partisan
Divide
If the stock market ends
up performing poorly under
President Donald Trump, it
might not be his fault. It’s
just that he is a Republican.
A striking feature of the
U.S. stock market is that it
persistently does better un-
der Democratic presidents
than Republi-
can ones. In a
2003 paper,
Pedro Santa-
Clara and Ros-
sen Valkanov
HEARD found that re-
ON THE gardless of
STREET how they
JUSTIN sliced the data,
LAHART returns were
substantially
better for
Democrats. Since then, with
the poor returns under Pres-
ident George W. Bush and
the strong returns under
President Barack Obama, the
effect has only become
stronger.
Messrs. Santa-Clara and
Valkanov couldn’t come up
with a satisfactory explana-
tion for the presidential puz-
zle. But in new research,
University of Chicago Booth
School of Business econo-
mists Lubos Pastor and Pi-
etro Veronesi think they have
come up with the answer.
The two economists cre-
ated a model where people
have a choice between being
entrepreneurs and working
for the government, and of
voting for a political party
that favors lower taxes or
higher taxes.
When risk aversion is low,
more people want to be en-
trepreneurs and to vote for
the low-tax party. When risk
aversion is high, the oppo-
site is true.
It is a highly simplified
version of U.S. politics and
economics. But the implica-
tions for stock prices are in-
teresting. The low-tax party
gets elected when risk aver-
sion is low, and then if risk
aversion merely returns to
the mean, stocks suffer. For
the high-tax party, the oppo-
site is true.
Mr. Trump is in many
ways not a conventional Re-
publican, says Mr. Pastor.
“But he is in the important
sense that he is pushing for
lower taxes. In that respect,
he fits our model very well.”
Notice to
Readers
Jason Zweig’s Intelligent
Investor column will
return next week.
BIGGEST 1,000 STOCKS B4, B5 | MARKETS DIGEST B6 | WEEKEND INVESTOR B7
* * * *
STOXX 600 370.22 À 0.03%
itable to extract. A disclosure
is expected in the coming
week.
The step stems from U.S.
regulations that require com-
panies to take oil reserves off
their books if they aren’t prof-
itable at existing prices or can
no longer be included as part
of five-year development
plans.
The company said it still
expects the reserves will be
developed and again be added
to its totals if prices rise, costs
fall or its operations improve.
It has stopped short of taking
a financial write-down on its
Canadian assets.
The acknowledgment by
Exxon, after the company
spent about $20 billion to put
the oil sands at the center of
its growth plans, highlights
how dramatically the pros-
pects of the region have
dimmed.
Once considered a safe bet,
A Basketball Scion Scores Big as an Investor
NEW LANE: Nate Walton, the son of basketball legend Bill Walton, has left the family sport
behind for an investing career. Above, the younger Walton in his playing days at Princeton. B7
Teens Make Thousands Selling Used Clothes Online
BY KHADEEJA SAFDAR
Kaimi Quipotla rarely asks
her parents for money to buy
clothes. The 18-year-old high-
school student, who lives in Las
Vegas, mostly recycles her ap-
parel using online marketplaces.
“I’ll wear something twice
and then sell it and buy some-
thing new,” she said. “If you’re
smart about it and know how to
upsell, resell and customize, you
can also make so much money.”
Ms. Quipotla said she
started selling items from her
closet when she was 13 years
old to refresh her wardrobe,
but now she looks for items to
repurpose and hawk for a
profit.
She recently sold a $10 pair
of jeans from Goodwill for $75
after cutting off the legs, dye-
ing them acid-wash pink, fray-
ing the hems and decorating
them with studs, she said.
“I would see girls wearing
things and would want some-
THE WALL STREET JOURNAL.
10-YR. TREAS. À 7/32 , yield 2.425%
Sliding Down
Spending on oil sands has plummeted amid persistently low oil prices.
Total Canadian oil-sands investments
Mining In-situ production
$30 billion
20
10
0
2009 ’10 ’11 ’12 ’13
Source: Rystad Energy UCube
Canada’s vast deposits are
emerging as a prominent case
of reserves being stranded by
a combination of high costs,
low prices and tough new en-
vironmental rules.
“For a lot of reasons the oil
sands look like a prime candi-
thing similar, but I didn’t have
the money. So I just figured it
out on my own,” she said.
Ms. Quipotla’s account his-
tory shows that she has
shipped more than 300 items
through Poshmark, an app for
reselling clothes, since 2013
and collected nearly $4,000.
While many apparel
retailers struggle, the
online market for used
items has grown.
While many apparel retailers
such as Abercrombie & Fitch
Co. and Gap Inc. have struggled
in recent years with shrinking
sales, the amount of used
clothes being traded online has
been rising. The U.S. volume of
apparel and other items sold on
Vinted, ThredUP and other such
MARKETS FRENCH FRICTION B9
Saturday/Sunday, February 18 - 19, 2017 | B1
OIL $53.40 À $0.04 GOLD $1,237.60 g $2.40
In addition to the oil sands’
high costs, extracting and re-
fining the region’s heavy oil or
bitumen is on average a more
carbon-intensive process than
almost any other type of ex-
traction. The Alberta and Ca-
Projections nadian governments have in-
troduced new rules, including
a cap on emissions and a car-
bon tax
During most of the past de-
cade, Exxon and other giant
oil companies spent billions of
dollars in Canada as part of a
global quest for new sources
of supply, as analysts cau-
’14 ’15 ’16 ’17 ’18 tioned about “peak oil,” or the
THE WALL STREET JOURNAL. idea that production would
start declining as resources
date for eventual abandon- ran out. Prices surged to $140
ment,” said Jim Krane, an en- a barrel.
ergy fellow at Rice Companies worked fever-
University’s Baker Insti- ishly to replenish their re-
tute. “One problem is that serves of oil and gas, espe-
costs are persistently higher. cially as investors have
The high carbon content only traditionally considered re-
makes it worse.” serves a key indicator of fu-
Returns Weaken
For Investors
In Online Loans
BY PETER RUDEGEAIR
For online lenders, 2016 was
an arduous year marred by
layoffs, executive departures
and falling share prices. For
the funds that purchased their
loans, it wasn’t much better.
Two of the largest invest-
ment managers in the sector,
LendingClub Corp. subsidiary
LC Advisors and Colchis Capi-
tal Management, reported the
lowest returns in their main
funds since each launched in
2011, according to investor
documents reviewed by The
Wall Street Journal. Publicly
listed funds that buy online
loans, such as P2P Global In-
vestments PLC, are trading at
deep discounts to their net as-
set value.
At LC Advisors, the Broad
Based Consumer Credit
(Q) Fund returned 1.83% in
2016, down from 5.76% in 2015
and 8.02% in 2014, according
to the investor documents.
That was worse than the
BEVERLY SCHAEFER/PRINCETON UNIVERSITY
2.65% return of the Bloomberg
Barclays U.S. Aggregate Index,
a broad measure of perfor-
mance of various fixed-income
securities that LC Advisors
uses as a benchmark.
The sluggish returns have
been a disappointment for in-
vestors who were hoping the
online consumer space would
offer fatter yields. Part of
what is hurting performance:
higher-than-expected defaults
on older batches of unsecured
consumer loans. Online lend-
reselling services has more than she picked Poshmark because
doubled since 2013 and the she could sell clothing and ac-
market is now slightly more cessories for online credits and
than $2 billion, estimates then use her reservoir to pur-
PrivCo, which analyzed data chase other items. “It allowed
from 15 reselling sites. me to become financially inde-
Many platforms have tailored pendent—at least when it
their services for smartphone came to clothes,” she said.
users, making it easy to snap The mall near her small
photos and list items, and for town of Albany, Texas, has a
teens or young consumers who few stores such as American
don’t have credit cards. Some Eagle Outfitters Inc., but Ms.
also provide a standard shipping Stunkard said the clothes sold
label at no additional cost. at most chains don’t reflect
“Young girls are going online her personal style. “I don’t
to look for fashion advice and want to look like everyone
share styles with friends,” said around me,” she said.
Poshmark CEO Manish Chan- Recently, Ms. Stunkard sold
dra. “We built our app as a so- a shirt featuring singer-song-
cial network for that reason writer Tori Amos for $15 to a
and made it super simple for fellow fan. “It was hard for me
teens to ship items and process to let go,” she said. “It made
payments.” me happy to know it was go-
In the last six months, ing to a fan.”
Poshmark said orders for ju- In a recent survey conducted
nior sizes, often worn by by research firm Cassandra,
teens, grew at twice the rate 36% of 14- to-19-year-old re-
of the site’s overall business. spondents said they bought or
Genevieve Stunkard, 17, said Please see RESELL page B2
EURO $1.0615 YEN 112.82
ture success.
But now, the worry is more
about “peak demand.” Amid a
glut of supply that led to a
price collapse in 2014 and a
tepid recovery, investors and
executives at some of the
world’s biggest energy produc-
ers are considering the possi-
bility that oil demand will top
out in the coming decades.
The shift from a preoccu-
pation with future supply to
worries about demand has al-
tered investment priorities
away from high-cost opportu-
nities in the Arctic, ultradeep
waters and the oil sands.
Such projects can require
billions of dollars in upfront
investment and seven to 10
years, or even more, to bring
returns. Now companies are
turning to new sources of
crude oil, such as shale, that
don’t require the same mas-
sive investment of time and
Please see EXXON page B2
ers rely on outside money
managers to buy their loans,
and diminished returns could
prompt some managers to
shift into other asset classes.
To keep loan investors en-
gaged, lenders raised rates for
borrowers several times last
year and cut off riskier loan
customers. Fourth-quarter re-
sults released this past week
by online business lender On
Deck Capital Inc., however,
showed that loan quality is
still shaky, which led to a
sharp decline in its shares.
The lenders’ maneuvers also
created an additional drag
on returns for fund inves-
tors. Under accounting rules,
money managers are required
to assign lower values to exist-
ing holdings of lower-yielding
credits when borrowers’ inter-
est rates rise. While purchasing
the newer, higher-yielding loans
will boost returns over time, it
can take months or years for
that to offset the markdowns.
“A lot of people thought
this was a way to get excess
yield,” said Joseph Drozd, di-
rector of research at Matrix
Please see LOAN page B7
Notice to Readers
U.S. financial markets will
be closed on Monday for
Presidents Day and The
Wall Street Journal print
edition won’t be published.
WSJ.com will be updated
throughout the weekend.
Out of Fashion
Annual change in U.S. apparel
spending
Total apparel Teen apparel
4%
$218.7B
s3%
3
2
1
0
–1 $18.8B
t1%
–2
2013 ’14 ’15 ’16
Source: The NPD Group/Consumer
Tracking Service
THE WALL STREET JOURNAL.
INDEX Markets Digest............................ B6
Bond Tables................................... B7 Money Rates................................. B9
Cash Prices..................................... B8 Mutual Funds............................... B8
Dividend News............................ B8 New Highs & Lows................... B8
Exchange-Traded Funds...... B8 Stock Listings....................... B4,B5
Futures.............................................. B7 Weekend Investor..................... B7
Heard on the Street.............. B10 Week in the DJIA....................... B8
 For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
B2 | Saturday/Sunday, February 18 - 19, 2017
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
Abercrombie & Fitch...B1
Airbus Group...............B3
Alphabet....................B10
Amazon.com ............. B10
American Eagle
Outfitters............B1,B2
Anheuser-Busch ......... A9
Applied Materials.....B10
ARC Financial..............B2
Ares Management......B7
B Sony.............................B3
Bank of America.........B2
Ben & Jerry's..............A1
Berkshire Hathaway
............................. A9,B10
Blackstone Group ....... B7
BMW ........................... B2
Boeing ......................... B3
BP................................B2
C man for the investors said Fri-
Capital Partners ......... A9
Chevron ....................... B2
Clayton Williams
Energy........................B7
Coach...........................A8
C-Quadrat
Investments..............B2
INDEX TO PEOPLE
A I
Amos, Tori...................B1
Amos, Tori...................B2
Arcuri, Timothy.........B10
B Jonas, Jeffrey...........B10
Bakish, Bob.................B3
Buffett, Warren..........A9
C Krane, Jim...................B1
Chandra, Manish.........B1
D Lincoln, Abraham......C14
Drozd, Joseph ............. B1
F Moynihan, Brian ......... B2
Frankfort, Lew............A8
G Palmer, David ............. A9
Grey, Brad ................... B3
BEN NELMS/BLOOMBERG NEWS
An oil sands operation near Fort McMurray, Alberta.
EXXON
Continued from the prior page
money to bring to production.
“Barring some geopolitical
catastrophe that really
changes the outlook…all these
other projects are going to
take the wind out of the oil
sands,” said Amy Myers Jaffe,
executive director for energy
and sustainability at the Uni-
versity of California, Davis.
Canada was once thought
to hold the world’s third-larg-
est trove of crude, enough to
meet U.S. demand for almost
30 years, largely due to the oil
sands in northern Alberta—gi-
ant deposits of crude with the
consistency of a hockey puck.
Today, only about 20% of
those reserves, or about 36.5
billion barrels, are capable of
being profitable, according to
energy consultancy Wood
Mackenzie.
In the decade leading up to
the 2014 price collapse, com-
panies spent as much as $200
billion building megaprojects
to extract heavy oil in Al-
berta’s boreal forest.
Canada, despite its high
costs, was attractive to com-
panies like Exxon for its stabil-
ity and proximity to the U.S.
For its Kearl oil sands proj-
ect in Alberta, Exxon invested
more than $20 billion, design-
ing a less carbon-intensive
process by which the oil could
be extracted without the use
of a high-emitting plant called
an upgrader.
The project was supposed
to unlock 4.6 billion barrels of
crude over 40 years and pro-
duce as much as 300,000 bar-
rels a day. Production came
online in 2013 and was ex-
panded significantly two years
later. The plant produced an
average of about 169,000 bar-
rels a day last year, according
to an Exxon subsidiary.
The reserves Exxon is about
to take off its book are a casu-
alty of the price collapse that
has foiled more than 17 oil
sands projects, representing
about 2.5 million barrels a day
of production, according to
ARC Financial Corp.
Global companies such as
* ***** THE WALL STREET JOURNAL.
BUSINESS & FINANCE
D-E
Deere...........................B4
Deutsche Bank............B2
eBay.............................B2
Exxon Mobil................B1
Procter & Gamble.......A9
R
Restaurant Brands
International.............A9
Royal Dutch Shell.......B2
China Firm Backs Deutsche
BY JENNY STRASBURG
F S
Facebook......................B2 SAB Miller .................. A9 Chinese conglomerate HNA
G Sage Therapeutics....B10 Group holds a 3.04% stake in
Samsung Electronics..B3
Gap .............................. B1 Deutsche Bank AG through a
Sara Lee......................A8 European asset manager, ac-
Gastar Exploration ..... B7
Saudi Arabian Oil.......A1
H-K cording to securities filings.
Statoil ......................... B2
HNA Group holds the stake
Halcon Resources ....... B7
through C-Quadrat Asset Man-
KKR..............................B7 T
Kraft Heinz .... A1,A9,B10 agement (UK) LLP, the U.K.
TDK..............................B3
L subsidiary of C-Quadrat In-
3G Capital............A9,B10
Tim Hortons................A9
vestment AG, founded by Aus-
LendingClub.................B1
21st Century Fox........A2 trian investor Alexander
Lockheed Martin.........B3
U Schütz.
M
A Frankfurt-based spokes-
Mannesmann..............A1 Unilever..........A1,A9,B10
Microsoft...................B10 V
day that HNA purchased the
N Viacom.........................B3
shares through a special-pur-
Vodafone Group..........A1
Nestlé..........................A9 pose vehicle managed by C-
KRISZTIAN BOCSI/BLOOMBERG NEWS
W
Noble Energy .............. B7 Quadrat. It wasn’t clear how
O-P Whole Foods Market..B3 much HNA Group paid for its
On Deck Capital..........B1 Y stake, which crossed the 3%
Paramount Pictures....B3 Yum Brands ................ A9 threshold this week, triggering
public disclosure.
The buyer’s spokesman,
Thomas Katzensteiner,
wouldn’t comment on when
the shares were purchased or
Polman, Paul...............A9
at what price. Deutsche Bank shares have regained some ground this year after hitting multiyear lows in 2016.
Icahn, Brett.................B7 R At Friday’s price, the 41
J Redstone, Shari..........B3
million-share stake was worth sector. They want to support nesses or management, Mr. for $6.5 billion.
Jaffe, Amy Myers.......B2 Redstone, Sumner......B3 about €755 million ($805 mil- the bank and the manage- Katzensteiner said: “They HNA’s Deutsche Bank stake
Rosenthal, Bennett .... B7
lion). Deutsche Bank shares ment.” trust fully in the current man- makes it the lender’s third-
K Rose, Tyler..................B2
were down 2.7% in Friday In a separate statement is- agement.” largest shareholder, behind
Kaplan, David..............B7 S trading as of midafternoon, at sued through a different A Deutsche Bank spokes- members of Qatar’s royal fam-
Santa-Clara, Pedro......B1 €18.02. Over the past year, spokesman, HNA said its man said Friday that the ily and giant U.S. money man-
L Stunkard, Genevieve .. B1 they have ranged from €9.90 Deutsche Bank holding is pas- lender “welcomed in principle ager BlackRock Inc., according
V to €19.95. sive, and it wouldn’t comment any investor with a long-term to public filings.
M Valkanov, Rossen........B1 C-Quadrat holds the voting on whether it might increase view.” The German lender’s shares
Veronesi, Pietro..........B1 rights for HNA in its Deutsche its stake. The statement called HNA Group, controlled by are up 4.4% this year after hit-
P W Bank stake, Mr. Katzensteiner any characterizations of its in- Chinese tycoon Chen Feng, ting multiyear lows in 2016,
Williams, Clayton.......B7 said. The Chinese investors tentions “purely speculative.” owns domestic assets includ- when investors were shaken
Pastor, Lubos..............B1 Woodbury, Jeff...........B2 “do not rule out” increasing Mr. Katzensteiner said nei- ing airline and shipping firms by concerns about legal-settle-
their stake, but their inten- ther C-Quadrat nor HNA would and hotel chains. The con- ment costs, flagging profits
tions are to “stay below 10%” comment Friday about glomerate has been expanding and a potential move to raise
of outstanding Deutsche Bank Deutsche Bank’s strategy. globally of late. capital by selling new stock.
shares, Mr. Katzensteiner said. Asked whether either firm has In October 2016, HNA Deutsche Bank executives
He added: “They’re seeing suggested any changes at the agreed to buy a 25% stake in have said they meet capital re-
Deutsche Bank as an attractive bank or shared opinions with Hilton Worldwide Holdings quirements and want to avoid
investment in the financial Deutsche Bank about its busi- Inc. from Blackstone Group LP issuing shares.
White House Takes Aim at CFPB
BY YUKA HAYASHI the CFPB’s independent struc- plating taking toward the bly until his term expires in
ture was unconstitutional and CFPB, or toward the ongoing July 2018. The order raises
WASHINGTON—President ordered a rehearing by the en- case. Former President Barack new hurdles for Mr. Trump to
Donald Trump believes the tire court. Obama’s Justice Department in remove Mr. Cordray, despite
structure of the Consumer Fi- As part of that earlier rul- December had filed a friend-of- calls from the bureau’s oppo-
nancial Protection Bureau ing, the judges granted the the-court brief taking the nents to do so.
makes the agency “unaccount- president the power to fire the CFPB’s side in the case and In recent weeks, some offi-
able” to the American people, CFPB director at will, a power cials in the Trump administra-
according to a White House that was explicitly not in- tion have made comments ex-
spokesperson, weighing in for cluded in the law that created pressing their desire to bring
the first time in the debate the agency.
Trump’s criticism came changes to the CFPB, but Mr.
about the future of the watch- Under the law, the presi- after an appeals court Trump himself hadn’t made
dog agency created under the dent can only fire the director his views public.
Obama administration. for “cause,” a more difficult
tossed out a ruling Consumer advocates pushed
The comment came a day af- standard to meet. challenging the agency. back against Mr. Trump’s
ter a significant court action “The President believes that statement. “Director Cordray
Statoil ASA and Royal Dutch
Shell PLC that raced to build
massive industrial projects in
Canada have been forced to
Thursday in a case questioning
the CFPB’s constitutionality.
That order could slow the
Trump administration’s effort
the initial decision made by the
three judge panel of the DC cir-
cuit was correct,” the spokes-
person said in an emailed
urging the court to refer the
case to the full panel of judges,
has been an effective and re-
sponsible head of the CFPB,”
said Lisa Donner, executive di-
rector of Americans for Finan-
lower the value of their oil to overhaul the agency long at- statement. “The structure of the position it took this week. cial Reform. “Under his leader-
sands investments. Since 2012, tacked by Republicans and the the CFPB makes it unaccount- In the near term, the court ship, it has been accountable
the write-downs from those financial industry for what they able to the American people.” decision increases the likeli- to the American people, deliv-
companies and Canadian pro- brand regulatory overreach. The CFPB didn’t provide a hood that Richard Cordray, ering over $12 billion in relief
ducers have exceed $20 bil- The U.S. Court of Appeals comment on the statement. the current director of the for more than 29 million peo-
lion. for the District of Columbia The statement didn’t elabo- CFPB, will remain in his job as ple, a publicly searchable com-
Exxon isn’t forecasting an tossed out an earlier ruling by rate further on what actions, if the case drags on over the plaint system, and rules of the
oil demand peak through 2040 a small panel of judges that any, Mr. Trump was contem- next few months—and possi- road to make lending fairer.”
despite the action it is taking
on its reserves.
“Even though we make that
transfer, there is no change to
our operations or how we
BofA CEO
manage the business, those as-
sets, going forward,” Jeff
Woodbury, Exxon’s vice presi-
Gets 25%
dent of investor relations, told
investors last month.
U.S. Securities and Ex-
Pay Bump
change Commission rules re- BY PETER RUDEGEAIR
quire companies to evaluate AND CHRISTINA REXRODE
their prospects based on the
average oil price in the previ- Bank of America Corp.’s
ous year—about $43 a barrel Brian Moynihan is set to re-
in the U.S. for 2016. ceive his biggest pay package
Exxon isn’t the only com- since becoming chief executive
pany taking steps that under- more than seven years ago.
score the tenuousness of oil Mr. Moynihan is expected
EMILY WILSON FOR THE WALL STREET JOURNAL
reserves. In its annual energy to receive total compensation
outlook published earlier this of $20 million for 2016, ac-
year, BP PLC warned that an cording to a regulatory filing
abundance of already discov- the bank made Friday. That is
ered oil resources and slowing a 25% increase from the previ-
demand growth will likely ous year, when he received $16
mean some barrels are never million.
recovered. The package for Mr. Moyni-
Exxon Mobil, along with han includes $18.5 million of
Chevron Corp., is pouring bil- restricted stock, a value based
lions into expanding their on the bank’s recent share
footprint in shale oil, turning price. To get the full value of
to projects that can ramp up Kaimi Quipotla has shipped more than 300 items through Poshmark, an app for reselling clothes. the award, Mr. Moynihan and
quickly to fill the void left by a the bank will have to meet
lack of larger, costlier develop-
ments.
Many of Canada’s biggest
producers are planning to rein
RESELL ago to earn money to buy col-
lectible sneakers.
In his first successful trans-
action, he sold a Supreme T-
hazards.
She said her son avoids
meeting buyers face-to-face
after he was robbed once.
certain performance metrics.
Earlier in his tenure as CEO,
Mr. Moynihan had forfeited
large chunks of his stock
in spending this year, even as Continued from the prior page shirt for $88 that he had “You’ve got to have that con- awards because the bank’s re-
spending in parts of the U.S. is sold used items such as clothes bought for $32 on eBay, he versation and draw boundar- sults were below targets.
starting to rise. and furniture through an online said, and then used the profit ies,” she said. “Thankfully he’s Mr. Moynihan also will re-
According to the Canadian resale platform. By compari- to buy a pair of Vans. He then very aware of the risks.” ceive $1.5 million in salary, the
Association of Petroleum Pro- son, 35% said they shopped at resold the sneakers and used Tyler Rose has now shifted same as the previous year. He
ducers, capital investment in a specialty retailer such as Ab- the money to buy two other his business from eBay and doesn’t get a cash bonus.
the oil sands fell about 30% in ercrombie or J. Crew Inc. in pairs of sneakers. Facebook to his own website, Separately, Citigroup CEO
both 2015 and 2016 and is ex- the previous six months. From his family’s New York which he built using Shopify, a Michael Corbat is seeing a cut
pected to slide another 11% “Teens have become mas- City apartment, and with the platform that helps users sell in his compensation.
this year. ters of value manipulation,” help of the building’s doormen goods online. Mr. Corbat is expected to
To be sure, oil output isn’t said Melanie Shreffler, senior to handle his packages, Mr. The high-school junior said receive total compensation of
expected to fall in Canada as it director at Cassandra. “They Rose and his parents said he he has been researching $15.5 million for 2016, accord-
has in the U.S. Fully invested are highly skilled at market- made more than $100,000 last Porsche and BMW models. ing to a regulatory filing from
oil-sands projects may go for- ing, not only themselves, but year by reselling skateboard “I’ve always had an interest in the bank on Friday. That is a
ward because the cash cost of also the items they resell.” apparel and rare sneakers. cars,” he said. “Now it’s hit- 6% decrease from the previous
producing barrels once a proj- Tyler Rose, 17, started sell- Yvette Rose, Tyler’s mother, ting me that I’ll be able to get year, when he received $16.5
ect is up and running is low. ing clothes online two years warns parents about security the one I want.” million.
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
THE WALL STREET JOURNAL.
Paramount
Chief Grey
To Leave
Top Job
BY JOE FLINT
AND BEN FRITZ
Paramount Pictures Chief
Executive Brad Grey is stepping
down at the request of his new
boss, Viacom Inc. CEO Bob
Bakish, according to people
with knowledge of the matter.
Mr. Grey, a former talent
manager who has run Para-
mount since 2005, is negotiat-
ing the terms of his departure,
one of the people said. Mr.
Bakish is expected to travel to
Los Angeles in the coming
days to work out details of an
exit package, the person said.
Mr. Grey didn’t immediately
respond to requests for comment.
Paramount has been strug-
gling financially for years, in
part because it has been releas-
ing fewer movies than its com-
petitors, compounded by a
string of box-office duds includ-
ing “Monster Trucks,” a remake
of “Ben-Hur” and “Zoolander
2.” Paramount lost $445 million
in the fiscal year ended Sep-
tember, compared with a $111
million profit in the prior year.
It has ranked last at the box of-
fice among Hollywood’s major
studios for four years.
Mr. Grey had a very close re-
lationship with Sumner Red-
stone, the controlling share-
holder and former chairman of
Viacom, which owns Paramount,
and with Viacom’s former CEO
Philippe Dauman. Over the past
year as Mr. Redstone’s daughter,
Shari Redstone, has taken a
much stronger oversight
role, Mr. Grey has tried to con-
vince her that he has a strategy
to revive the struggling studio.
However neither she nor
Mr. Bakish, who became CEO
in November, have been won
over. Last week, Viacom un-
veiled plans to tie the studio
more closely to its cable net-
works.
Whole Foods Wins Votes, but Not Without Grumbles
BY HEATHER HADDON
AND DAVID BENOIT
Whole Foods Market Inc.’s
annual shareholders meeting
convened Friday amid investor
concern about the organic-
food retailer’s ability to ad-
dress decelerating sales
growth and steep reductions
in its share value.
Some investors are saying
the Austin, Texas-based com-
pany is at an inflection point
as it works to improve its per-
formance in the increasingly
competitive grocery industry.
Absent improvement it could
face a challenge to the board
in about six months’ time, ac-
cording to people familiar
with the matter.
A Whole Foods spokes-
woman declined to comment.
Protest votes against direc-
tors without a competing slate
of nominees—as was the case
Friday—are unlikely to unseat
current board members but
can embolden activists and
critics to try to campaign in
the following year, especially
if performance hasn’t changed.
Shareholders approved the
SAMSUNG ELECTRONICS
Phone Maker Adds
Battery Supplier
Samsung Electronics Co. will
add a third battery supplier for
its next flagship smartphone, the
Galaxy S8, according to people
familiar with the matter, as the
company works to avoid a re-
peat of last year’s phone recall
involving overheated batteries.
The South Korean technology
giant will use lithium-ion battery
packs from a unit of Japan’s
Sony Corp. for the Galaxy S8,
these people said, in addition to
its longtime suppliers: affiliate
Samsung SDI Co. and Amperex
Technology Ltd., a Hong Kong-
based unit of Japan’s TDK Corp.
—Takashi Mochizuki
AIR CANADA
Airlines Posts Loss
As Fuel Costs Rise
Air Canada Friday reported a
bigger fourth-quarter loss as the
airline was hit by rising fuel
* * * *
‘This is our mantra. Buy American. Hire American,’ President Trump said in a speech Friday at Boeing’s plant in South Carolina that echoed his campaign themes.
Trump Offers Praise for Boeing
President, who faulted
cost of new Air Force
One, suggests it may
get more business
BY DOUG CAMERON
AND DAMIAN PALETTA
President Donald Trump on
Friday heaped praise on Boe-
ing Co. and suggested the U.S.
government could increase its
business with the aerospace
company as he delivered an
economic-themed speech that
had many campaign-trail over-
tones.
Mr. Trump, speaking at
Boeing’s North Charleston,
S.C., facility, gestured to a
large 787-10 Dreamliner be-
hind him and said “That is one
beautiful airplane. Congratula-
Whole Foods, which held its annual meeting on Friday, is struggling against tough competition.
most closely watched proxy
resolutions Friday, including
ones pertaining to the former
co-CEO’s severance package
and two board members ques-
tioned by analysts over their
record for attendance and in-
dependence.
BUSINESS WATCH
costs and pension charges de-
spite a sharp rise in passengers.
Montreal-based Air Canada
posted a loss of 179 million Ca-
nadian dollars ($136 million),
compared with a year-earlier loss
of C$116 million. Revenue rose
7.6% to C$3.42 billion.
—David George-Cosh
DIGITALGLOBE
Geospatial Company
Attracts Suitor
Canadian satellite company
MacDonald Dettwiler & Associ-
ates is in advanced talks to buy
U.S. satellite-imaging provider
DigitalGlobe Inc., according to
people familiar with the matter.
Terms of the potential deal
couldn’t be learned, but given
DigitalGlobe’s market value of
$1.8 billion on Friday and a typi-
cal takeover premium, it could be
worth between $2 billion and $3
billion. It is possible the talks
could fall apart, and another bid-
der could emerge for the West-
minster, Colo., company.
—Dana Mattioli
BUSINESS & FINANCE
tions to the men and women
here who have built it. What
an amazing piece of art. What
an amazing piece of work.”
The 15-minute remarks he
delivered in South Carolina re-
inforced many of the themes
he has made for months, both
as a presidential candidate
and since he was sworn in.
He said he would cut taxes
for almost all taxpayers, re-
duce regulations for busi-
nesses, and find ways to finan-
cially punish companies that
move jobs overseas and then
try to sell their products back
into the U.S.
“This is our mantra. Buy
American and hire American,”
he said.
Large parts of the new
787—which is due to fly for
the first time in the coming
weeks—are built outside the
The vote came just a week
after Whole Foods delivered a
downbeat financial outlook,
with executives dropping
plans to expand to 1,200
stores in the U.S. and an-
nouncing the largest number
of stores closures at one crack
NEXTERA ENERGY
Company’s Deal
For Oncor Advances
NextEra Energy Inc.’s planned
acquisition of Oncor, one of the
country’s largest electricity trans-
missions businesses, advanced
on Friday, when a judge ruled to
confirm the bankruptcy-exit plan
of Oncor owner Energy Future
Holdings Corp.
Confirmation sets the stage
for hearings before the Public
Utility Commission of Texas,
which must approve the acquisi-
tion of Oncor, a critical element
of the state’s power system.
“This is a watershed moment,
to say the least,” Judge Christo-
pher Sontchi said Friday.
The confirmation is the sec-
ond for an Energy Future bank-
ruptcy plan. An earlier chapter 11
plan centered on Oncor’s sale to
a group of investors was con-
firmed last year, but the deal fell
apart after Texas regulators put
conditions on the transaction.
—Peg Brickley and
Jonathan Randles
Saturday/Sunday, February 18 - 19, 2017 | B3
KEVIN LAMARQUE/REUTERS
U.S. and assembled in North ted to keep down the cost of the U.S. is looking at “a big or-
Charleston and Boeing’s main replacing the presidential fleet der” of additional F/A-18s.
manufacturing facilities near of 747 jumbos. The president also offered
Seattle. Boeing created a On Friday, Mr. Trump said backing for Lockheed’s F-35,
global supply chain to spread they were “getting closer and however.
the financial risk of the 787 closer” to a deal on the Air “It was out of control and
program among partners. Force One successor. now it’s very much in control,”
While Boeing has a record he told reporters.
backlog of almost 6,000 jetlin- Boeing’s shares hit a record
ers, it has also been cutting on Friday, while Lockheed
jobs to improve its competi-
Boeing’s relations ended flat.
tiveness with European rival with Mr. Trump have Mr. Trump, who was invited
Airbus SE. by Boeing to the event, said
Boeing’s relations with Mr.
warmed since his U.S. companies and workers
Trump have warmed markedly blast on Twitter. faced unfair trade imbalances.
in recent weeks following his “When there is a level play-
initial blast on Twitter in De- ing field, and I’ve been saying
cember against the cost of the this for a long time, American
new jets it will build to serve Boeing was also asked to workers will always, always,
as Air Force One, threatening price out its F/A-18 combat always win,” he said.
to even cancel the plan. jets as a potential substitute The president ended his
Boeing Chief Executive Den- for some of the F-35 aircraft speech with unusual praise for
nis Muilenburg has met a being built by Lockheed Mar- Boeing: “May God bless the
number of times with Mr. tin Corp. for the U.S. Navy. United States of America and
Trump since then and commit- Mr. Trump said Friday that God bless Boeing.”
according to FactSet data. change at the company, people
But mainstream grocers’ familiar with the matter said.
expansion into natural and or- The firm believes Whole Foods
ganic products has particu- resonates better with millenni-
larly hurt Whole Foods in a als and sells more prepared
sector it once dominated. The foods than rivals, but that
company’s stock has lost more management hasn’t kept up
than half its value since its with the chain’s growth, the
most recent peak in 2013. people said.
Whole Foods founder and Ahead of Friday’s vote,
CEO John Mackey pledged last proxy advisers added to the
week to use data and promo- pressure by raising concerns
tions to lure back core shop- about Whole Foods’ board at-
pers to its 469 stores in the tendance, executive pay and
U.S., Canada and the U.K. the “coziness” of its board, ac-
Wall Street analysts last cording to Glass Lewis & Co.
RICHARD B. LEVINE/ZUMA PRESS
week were largely positive on Glass Lewis raised red flags
the company’s shift to more over the board’s independence
fiscal discipline. last month and recommended
“A recovery seems likely,” against the severance package
said Laura L. McGonagle, se- for Walter Robb, who stepped
nior vice president at Trillium down as co-CEO in December
Asset Management, a Boston but remains on the company’s
investment firm that owns board. Mr. Robb didn’t re-
Whole Foods shares. spond to requests for com-
But others believe the com- ment.
in the company’s nearly 40- pany has a long way to go to On Friday, 84% of the vot-
year history. turn around its bottom line ing shareholders approved the
The entire grocery industry and expect pressure on leader- compensation allowances for
is sluggish as increased com- ship to grow. Whole Foods’ board, including
petition has eaten into mar- Neuberger Berman, a top-10 Mr. Robb’s $10 million sever-
gins and slowed growth. Food- investor with about 2.4% of ance package. All of the board
retail stock prices are down an Whole Foods stock, has been members were re-elected with
average of 2.17% year to date, privately pushing for faster at least 84% of the vote.
UCC Public Sale Notice
Notice is hereby given that Macquarie Texas Loan Holder LLC (the “Secured Party”) will offer for sale at public auction at 11:00 a.m. on Monday, February 27,
2017 at the offices of Dechert LLP, 1095 Avenue of the Americas, New York, New York 10036, in connection with a Uniform Commercial Code sale, all right,
title and interest of Atlas MF Mezzanine Borrower, LLC, a Delaware limited liability company (the “Debtor”), in, to and under the one hundred percent (100%)
limited liability company membership interests (the “Membership Interest”) in Atlas MF Holdco, LLC, a Delaware limited liability company (the “Company”),
together with all of the other collateral pledged in that certain Pledge and Security Agreement (the “Pledge Agreement”) as more fully set forth in the Pledge
Agreement (collectively, the “Pledged Collateral”), a copy of which is now available for inspection as hereinafter described. At such sale, the Pledged Collateral
will be offered as a single asset and not in parts or as separate assets. All interested prospective purchasers are invited to attend and bid at the sale. Pursuant
to the Pledge Agreement, Secured Party is granted a security interest in the Pledged Collateral to secure certain indebtedness (the “Indebtedness”) of Debtor.
Events of Default have occurred under the Pledge Agreement and the Indebtedness is due and payable in full.
Based upon information provided by Debtor and certain other persons and entities affiliated therewith, it is the understanding of Secured Party (but without
any warranty or representation by Secured Party as to the accuracy or completeness of the following matters) that (i) Debtor owns 100% of the limited
liability company membership interests in the Company, (ii) the Company indirectly owns and operates certain real estate and related properties commonly
known as (a) Bridges on Kinsey, 4411 Kinsey Drive, Tyler, TX 75703, (b) Dorado Ranch, 3601 Faudree Road, Odessa, TX 79765, (c) The Legends of El Paso, 200
Desert Pass, El Paso, TX 79912, (d) Vistas at Pinnacle Park, 4599 W. Davis Street, Dallas, TX 75211, (e) Paramount Terrace, 4210 Paramount Blvd., Amarillo,
TX 79109, (f) Savoy of Garland, 608 Rowlett Rd., Garland, TX 75043, (g) Huntington Ridge, 821 S. Polk St., Desoto, TX 75115, (h) River Oaks, 2000 Country
Club Rd., Wylie, TX 75098, (i) Mariposa Villas, 1531 Duncanville Rd., Dallas, TX 75211, (j) Longfellow Arms, 115 E. Hawkins Pkwy, Longview, TX 75605 and (k)
Stonebridge at City Park, 11800 City Park Central Lane, Houston, TX 77047 (individually and/or collectively as the context may require, the “Properties”), (iii)
each Property is encumbered by a mortgage (collectively, the “Senior Mortgages”), (iv) the Senior Mortgages have a combined original principal amount of
$146,118,500 and (v) in connection with the sale described herein, the Senior Mortgages shall either be paid off or assumed by the successful bidder; provided
that an assumption requires the consent of the holder of the related Senior Mortgages and the Department of Housing and Urban Development. The Secured
Party makes no representation as to the current status of the Senior Mortgages.
Secured Party reserves the right to accept or reject any bid and shall not be obligated to make any sale pursuant to this notice. Secured Party reserves the
right to bid and to become the purchaser at the sale to be made pursuant to this notice and to credit against the purchase price of the Pledged Collateral any
and all Indebtedness of Debtor to Secured Party.
THE MEMBERSHIP INTEREST WILL BE SOLD PURSUANT TO APPROPRIATE TRANSFER DOCUMENTS (THE “TRANSFER DOCUMENTS”) ON AN “AS IS,
WHERE IS” BASIS AND WITHOUT REPRESENTATIONS OR WARRANTIES OF ANY KIND OR NATURE WHATSOEVER.
The Membership Interest is an unregistered security under the Securities Act of 1933, as amended (the “33 Act”). Because of this, the purchaser of the
Membership Interest will be required to execute a letter representing (i) that it is purchasing the Membership Interest for investment purposes, solely for its
own account and not with a view to distribution or resale thereof; (ii) it is an accredited investor within the meaning of the 33 Act and applicable securities
laws; (iii) it has sufficient knowledge and experience in financial and business matters so as to be capable of evaluating the merits and risks of investment
and has sufficient financial means to afford the risk of investment in the Pledged Collateral; and (iv) that it will not resell or otherwise hypothecate the
Membership Interest without a valid registration under applicable federal or state laws, including, without limitation, the 33 Act or an available exemption
therefrom. The Membership Interest will be conveyed pursuant to the Transfer Documents, which will bear a legend to the effect that the Membership
Interest may not be sold or transferred in violation of the 33 Act.
The following will apply with respect to the sale herein described. A deposit will be required from the winning bidder at the public auction and the balance
will be due in accordance with the terms and conditions of the sale, which terms and conditions may be obtained by contacting the person named below.
The successful bidder shall also be required to execute a Contract of Sale and such other documents as may be required in accordance with the terms and
conditions of the sale at the time the bid is accepted. The sale of the Pledged Collateral may also be subject to certain applicable third party consents and/
or approvals. The terms and conditions of the sale may be waived or modified by Secured Party in its sole discretion at the time of the sale. If the successful
bidder defaults, then Secured Party shall be authorized to reschedule the sale and to retain the deposit and any other deposits made in accordance with the
terms and conditions of the sale (collectively, the “Deposit”). In the event that Secured Party is unable for any reason to consummate the sale of the Pledged
Collateral to the successful bidder, its sole obligation to the bidder shall be the return of the principal amount of the Deposit, without interest. Secured Party
may adjourn or cancel the sale hereby advertised from time to time, without written notice or further publication and such sale may be made at the time or
place to which the sale may have been so adjourned.
Further information relating to the Pledged Collateral, proposed sale, bidding procedures, details of the deposit amount, and documents available for review
(including the Pledge Agreement, other documents relating to the Indebtedness and the terms and conditions of the sale) is available by contacting the
person named below.
Steve Guberer: 212-656-0551; steve.guberer@cbrecap.com
Securities offered through CBRE Capital Advisors, Inc., a registered broker-dealer, member FINRA/SIPC.
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
B4 | Saturday/Sunday, February 18 - 19, 2017 * ****** THE WALL STREET JOURNAL.

BUSINESS & FINANCE

Deere Sees
Machinery
Few Women Heed the Sea’s Call
BY COSTAS PARIS

Demand As her tanker unloaded gaso-

line at a Beirut terminal early

Improving one morning, Iakinthi Tzanakaki

awoke to the sound of lines
snapping.
BY BOB TITA Strong winds were pushing
her 600-foot vessel toward an-
Deere & Co. said Friday de- other tanker also discharging
mand for its farm machinery fuel. Capt. Tzanakaki ran to
is improving, offering fresh the bridge, knowing a collision
optimism that the three-year could put lives and millions of
long slide in equipment sales dollars in cargo at risk.
is beginning to ease. “There was a lot of noise—
Deere, the world’s largest the alarm, men yelling as they
manufacturer of tractors and stumbled out of bed,” she said
harvesting combines, raised of that April 2013 morning. “I
its sales growth forecast for screamed ‘Full speed ahead!’
its current fiscal year. The …We broke the moorings hold-
company also reported results ing us in place and avoided a
for its latest quarter that collision that could have caused

MYRTO PAPADOPOULOS FOR THE WALL STREET JOURNAL

topped expectations, helped by
the sale of a portion of its dis-
tribution business for land-
scaping supplies.
The Moline, Ill.-based com-
pany still expects industry-
wide sales of farm machinery
in the U.S. and Canada to fall
by 5% to 10% this year. Lower
prices for farm commodities
have squeezed farmers’ in-
comes, driving down demand
for tractors and harvesting
combines since 2014.
The company predicted
sales of its farm and construc-
tion machinery will rise about
4% this year to about $24.3
billion, after forecasting a 1%
expansion in November. It also
bumped up its profit forecast
to about $1.5 billion from $1.4
billion, implying earnings per
share at about $4.70 to $4.75.
Analysts were expecting $4.53.
Overall for its first quarter,
Deere reported a profit of
$193.8 million, or 61 cents a
share, down from $254.4 mil-
lion, or 80 cents a share, a
year earlier.
Machinery sales fell 1.5% to
$4.69 billion. Total sales,
which include revenue from
Deere’s finance unit, rose 2%
$5.62 billion.
a blaze.” No one was hurt.
For a woman to face such a
challenge as commander is a
rarity on a Greek ship. Accord-
ing to data from the country’s
merchant marine ministry,
only 17 of the 2,704 people
named captains since 2010
have been women. Greece is
the No. 1 ship-owning nation
by tonnage, controlling about
a fifth of the world’s merchant
fleet, despite its multiyear
debt crisis. Its lack of women
at the helm and in the ranks Iakinthi Tzanakaki, shown in Greece’s port of Piraeus last month, is one of the few female captains serving on Greek-owned ships.
reflects the situation world-
wide, with women making up academies, there is one woman man,” said Venetia Kallipoli- what is usually an all-male crew.
about 2% of the global ship- for every five men. tou, head of maritime studies In addition to commanding the Commanding Absence
ping workforce, according to Ioannis Theotokas, the min- at the merchant marine minis- ship’s crew under way, she is re- Relatively few women serve as
the International Transport istry’s general secretary, said try, who holds the rank of cap- sponsible for reporting the ship’s officers on Greek vessels.
Workers’ Federation. he has encouraged shipowners tain, second class. position and status to her em-
Capt. Tzanakaki was hailed to employ more women, and The career is often seen as ployer and the cargo owners, as Officer certificates awarded by
by her crew for her handling the ministry has organized an obstacle to starting a fam- well as overseeing everything Greece since 2010
of the incident. “She made the events with female officers ily, said Katerina Ioannou, a from engine repairs to payroll. MALE FEMALE
right call in Beirut and saved talking about the rewards of 24-year-old Captain C class, Sexual harassment is an area
the ship and maybe our lives,” the career. “But progress is the No. 3 position on a ship. of concern for women in the in- Captains 2,687 17
said Manolis Marinakis, who slow,” he said. “Shipping companies invest dustry, said Karin Orsel, presi-
served as her second in com- Shipping officials cite the thousands to train you as a dent of the Women’s Interna- Captains 1,756 18
mand at the time. demands and frequent isola- captain, but after a few tional Shipping and Trading B Class
Despite the accolades and tion of the profession, as well months at sea, many girls ask Association, a networking or- Captains 1,968 111
relatively high pay—when trav- as an entrenched, male-domi- for desk jobs,” she said. “This ganization for female managers. C Class
eling, Capt. Tzanakaki earns up nated culture, for the disparity. makes employers reluctant to The Greek merchant-marine
to 10 times the average monthly “A female officer at sea promote them.” ministry’s Mr. Theotokas said Mechanics 1,942 0
salary for a Greek adult—few must put twice the effort to Trips routinely last six that sexual-harassment cases are
women heed the sea’s call. At persuade her employers that months or more, and a ship mas- taken seriously and have mostly Source: Greek Merchant Marine Ministry
Greece’s 10 merchant-marine she can do the same job as a ter is always on call, managing involved cruise ships or ferries. THE WALL STREET JOURNAL.

Biggest 1,000 Stocks | WSJ.com/stocks YTD 52-Week

How to Read the Stock Tables
The following explanations apply to NYSE, NYSE Arca, NYSE MKT and Nasdaq Stock Market listed securities. Prices
are composite quotations that include primary market trades as well as trades reported by Nasdaq OMX BXSM
(formerly Boston), Chicago Stock Exchange, CBOE, National Stock Exchange, ISE and BATS.
The list comprises the 1,000 largest companies based on market capitalization.
Underlined quotations are those stocks with large changes in volume compared with the issue’s average trading
volume.
Boldfaced quotations highlight those issues whose price changed by 5% or more if their previous closing price was
$2 or higher.
Footnotes: h-Does not meet continued listing
s-New 52-week high. standards
t-New 52-week low. lf-Late filing
dd-Indicates loss in the most recent q-Temporary exemption from Nasdaq Bankruptcy Code, or securities
four quarters. requirements.
FD-First day of trading. t-NYSE bankruptcy
Wall Street Journal stock tables reflect composite regular trading as of 4 p.m. and
changes in the closing prices from 4 p.m. the previous day.
Friday, February 17, 2017
YTD 52-Week Yld Net
% Chg Hi Lo Stock Sym % PE Last Chg
NYSE
8.31 23.90 17.26 ABB ABB 3.3 25 22.82 -0.19
3.82 40.72 25.46 AECOM ACM ... 36 37.75 -0.65
-1.38 13.32 9.32 AES AES 4.2 dd 11.46 -0.19
2.16 74.50 58.46 Aflac AFL 2.4 11 71.10 -0.09
-2.47 43.89 36.10 AT&T T 4.7 20 41.48 0.23
5.04 70.00 51.01 AXIS Capital AXS 2.2 13 68.56 -0.05
16.35 45.79 36.76 AbbottLabs ABT 2.4 48 44.69 0.49
-1.36 68.12 53.74 AbbVie ABBV 4.1 17 61.77 0.29
3.50 125.72 97.92 Accenture ACN 2.0 18 121.23
0.51
-4.58 280.89 188.09 AcuityBrands AYI 0.2 32 220.29
1.80
9.23 67.43 39.66 Adient ADNT ... dd 64.01 -0.69
-4.46 177.83 132.98 AdvanceAuto AAP 0.1 27 161.58 0.59
20.63 6.23 4.39 AdvSemiEngg ASX 4.2 16 6.08
-0.05
-2.71 6.09 3.36 Aegon AEG 5.5 23 5.38 -0.31
12.11 47.39 30.72 AerCap AER ... 11 46.65 -0.14
1.02 136.50 102.52 Aetna AET 0.8 18 125.27 -4.22
15.91 179.85 124.64 AffiliatedMgrs AMG 0.5 20 168.42 0.52
13.32 51.84 36.47 AgilentTechs A 1.0 33 51.63 0.79
11.48 60.10 32.87 AgnicoEagle AEM 0.9 99 46.82
-0.28
3.08 111.88 80.45 Agrium AGU 3.4 19 103.65 -0.44
-1.61 150.45 116.84 AirProducts APD 2.7 21 141.50 -0.37
8.87 98.89 54.51 AlaskaAir ALK 1.2 15 96.60 -0.09
6.78 95.89 51.03 Albemarle ALB 1.3 21 91.92 -0.49
28.95 39.78 20.00 Alcoa AA ... dd 36.21 -0.25
4.72 116.38 74.08 AlexandriaRealEst ARE 2.9 dd 116.38 0.56
14.47 109.87 64.66 Alibaba BABA ... 45 100.52 -0.30
4.71 638.88 453.77 Alleghany Y ... 18 636.79 -1.68
s 14.48 73.68 57.97 Allegion ALLE 0.9 31 73.27 0.34
17.78 301.32 184.50 Allergan AGN ... 7 247.35 0.42
2.86 241.69 185.02 AllianceData ADS 0.9 32 235.04 3.63
3.20 25.00 18.10 AllianceBernstein AB 11.1 12 24.20 0.35
0.50 40.99 33.26 AlliantEnergy LNT 3.3 25 38.08 0.15
10.45 38.17 22.22 AllisonTransm ALSN 1.6 29 37.21 -0.09
8.53 80.82 62.78 Allstate ALL 1.8 17 80.44 -0.36
22.03 23.62 14.84 AllyFinancial ALLY 1.4 11 23.21 -0.01
s 7.91 72.98 59.48 Altria MO 3.3 10 72.97 0.26
28.70 13.85 7.22 AlumofChina ACH ... 39 13.14 -0.40
16.50 6.34 4.33 Ambev ABEV 1.5 27 5.72 -0.09
1.73 54.08 45.10 Ameren AEE 3.3 20 53.37 0.43
1.11 15.95 11.02 AmericaMovil AMX 2.1 83 12.71 -0.20
2.36 15.93 10.83 AmericaMovil A AMOV 2.1 82 12.59 -0.16
-0.32 54.56 42.20 AmCampus ACC 3.4 60 49.61 0.03
1.83 71.32 57.89 AEP AEP 3.7 69 64.11 0.41
7.60 80.10 53.56 AmericanExpress AXP 1.6 14 79.71 0.20
6.01 93.64 65.92 AmericanFin AFG 1.3 13 93.42 -0.10
9.53 23.14 13.38 AmerHomes4Rent AMH 0.9 dd 22.98 0.06
-4.30 67.47 48.41 AIG AIG 2.0142 62.50 0.23
2.30 118.26 86.51 AmerTowerREIT AMT 2.1 55 108.11 0.40
2.00 85.24 64.65 AmerWaterWorks AWK 2.0 28 73.81 0.37
1.44 50.11 39.35 Amerigas APU 7.7 44 48.61 -0.07
16.27 129.27 80.39 Ameriprise AMP 2.3 16 128.99 -0.17
16.08 94.50 68.38 AmerisourceBrgn ABC 1.6 15 90.76 0.44
s 12.14 54.50 43.28 Ametek AME 0.7 25 54.50 0.13
s 3.36 69.46 51.47 Amphenol APH 0.9 27 69.46 0.08
-4.24 73.33 33.85 AnadarkoPetrol APC 0.3 dd 66.77 0.17
22.74 22.91 9.28 AngloGoldAsh AU ... ... 12.90 -0.39
3.21 136.08 98.28 AB InBev BUD 3.1 46 108.82 0.05
8.53 11.29 9.83 AnnalyCap NLY 11.1 9 10.82 0.02
13.86 35.74 18.77 AnteroMidstream AM 3.2 31 35.16 0.14
6.00 30.66 21.45 AnteroResources AR ... dd 25.07 -0.12
11.46 165.88 114.85 Anthem ANTM 1.6 17 160.25 -3.52
5.38 117.76 92.88 Aon AON 1.1 23 117.53 0.25
-12.65 69.00 36.09 Apache APA 1.8 dd 55.44 0.19
-0.97 47.91 35.45 ApartmtInv AIV 3.2 39 45.01 -0.16
0.08 38.30 29.94 Aramark ARMK 1.2 28 35.75 0.08
24.79 9.29 2.65 ArcelorMittal MT 2.2 19 9.11 -0.11
-2.10 47.88 32.31 ArcherDaniels ADM 2.9 20 44.69 0.59
61.33 30.16 16.75 Arconic ARNC 0.8 ... 29.91 0.42
s 23.03 119.45 55.00 AristaNetworks ANET ... 48 119.06
18.89
3.09 74.67 55.19 ArrowElec ARW ... 13 73.50 0.44
11.46 125.00 90.63 AshlandGlobal ASH 1.3 dd 121.81 1.02
4.19 98.97 68.14 Assurant AIZ 2.2 11 96.75
0.23
8.58 41.99 23.34 AssuredGuaranty AGO 1.3 5 41.01 -0.78
6.73 35.04 25.55 AstraZeneca AZN 6.5 23 29.16 0.40
5.15 52.75 43.25 Athene ATH ... 6 50.46 -0.77
2.55 81.97 68.15 AtmosEnergy ATO 2.4 21 76.04 0.14
-6.43 126.31 93.31 Autoliv ALV 2.2 16 105.87 -1.46
-6.17 819.54 713.09 AutoZone AZO ... 18 741.05 3.69
0.78 192.29 158.32 Avalonbay AVB 3.2 24 178.54 -0.53
8.00 46.74 35.42 Avangrid AGR 4.2 25 40.91 0.13
13.09 80.84 62.99 AveryDennison AVY 2.1 22 79.41 -0.75
-2.52 51.50 38.16 Avnet AVT 1.5 15 46.41 0.12
9.01 30.45 24.27 AxaltaCoating AXTA ...228 29.65 -0.01
2.00 48.36 31.27 BB&T BBT 2.5 17 47.96 -0.04
3.77 49.03 41.83 BCE BCE 4.9 14 44.87 0.07
12.58 41.79 21.88 BHPBilliton BHP 1.4 dd 40.28 -0.71
11.00 37.44 19.06 BHPBilliton BBL 1.6 dd 34.92 -0.57
-10.59 38.68 28.01 BP BP 7.227850 33.42 -0.26
% Chg Hi Lo Stock
Yld Net
Sym % PE Last Chg
YTD 52-Week
% Chg Hi Lo Stock
Yld Net
Sym % PE Last Chg
YTD 52-Week
% Chg Hi Lo Stock
Yld Net
Sym % PE Last Chg
5.37 13.26 9.89 ChinaUnicom CHU 2.1 47 12.17 0.06 0.67 52.50 39.13 Flowserve FLS 1.6 42 48.37 -2.44 -7.67 51.48 31.21 LINE LN ... 96 31.40 -0.30
13.33 542.50 352.96 Chipotle CMG ...528 427.61 2.85 7.44 58.37 42.41 Fluor FLR 1.5 50 56.43 -1.02 s 10.60 168.72 115.75 L3 Tech LLL ... 19 168.23 -0.26
s 3.08 136.25 114.58 Chubb CB 2.0 15 136.19 0.46 4.84 100.57 73.45 FomentoEconMex FMX 1.6 26 79.90 -0.34 8.73 141.32 106.01 LabCpAm LH ... 20 139.59 0.46
3.80 38.47 30.85 ChunghwaTelecom CHT 5.3 20 32.75 -0.04 0.16 79.43 50.90 FootLocker FL 1.7 15 71.00 0.50 4.68 40.16 28.75 LambWeston LW ... 18 39.62 -0.28
12.47 53.68 42.55 Church&Dwight CHD 1.5 28 49.70 0.77 3.71 14.22 11.07 FordMotor F 4.8 11 12.58 0.04 -2.58 63.38 41.45 LasVegasSands LVS 5.6 25 52.03 -0.48
7.62 150.69 115.03 Cigna CI 0.0 19 143.56 -1.77 7.44 24.22 17.34 ForestCIty A FCE/A 1.1116 22.39 -0.46 5.65 44.35 26.21 Lazard LAZ 3.5 15 43.41 -0.18
-2.86 146.96 80.02 CimarexEnergy XEC 0.2 dd 132.02 -1.04 7.50 29.87 17.55 ForestCity B FCE/B 0.8151 28.95 -0.35 7.55 148.49 96.64 Lear LEA 1.4 11 142.37 0.51
1.25 61.63 36.61 Citigroup C 1.1 13 60.17 -0.21 6.74 34.66 27.42 Fortis FTS 3.7 18 32.96 0.09 -0.53 54.62 43.15 Leggett&Platt LEG 2.8 18 48.62 0.28
6.20 38.43 18.34 CitizensFin CFG 1.5 19 37.84 -0.41 7.57 58.24 43.00 Fortive FTV 0.5 24 57.69 0.30 1.58 52.92 37.79 Leidos LDOS 2.5 14 51.95 -0.06
11.41 140.47 111.24 Clorox 6.73 64.47 49.18 FortBrandsHome FBHS 1.3 22 57.06 0.06
CLX 2.4 27 133.71 3.61 8.22 49.60 39.67 Lennar A LEN 0.3 12 46.46 0.28
v-Trading halted on primary market. 9.11 43.71 34.07 Coach COH 3.5 21 38.21 0.25 12.47 81.16 53.31 Franco-Nevada FNV 1.3 99 67.21 -1.21 9.36 39.93 32.09 Lennar B LEN/B 0.4 10 37.73 0.31
vj-In bankruptcy or receivership or -0.55 47.13 39.88 Coca-Cola KO 3.6 27 41.23 0.03 7.45 42.83 30.56 FranklinRscs BEN 1.9 14 42.53 0.24 6.11 170.80 119.75 LennoxIntl LII 1.1 26 162.53 -5.18
being reorganized under the 12.74 54.54 30.55 Coca-Cola Euro CCE ... 18 35.40 -0.05 13.04 17.06 6.55 Freeport-McMoRan FCX ... dd 14.91 -0.16 s 9.94 25.58 14.27 LeucadiaNatl LUK 1.0261 25.56 0.23
0.54 87.58 59.44 Coca-Cola Femsa KOF 2.7 24 63.88 -0.15 -3.96 47.52 38.05 FreseniusMed FMS 1.1 21 40.54 -0.48 1.67 60.12 44.01 Level3Comm LVLT ... 31 57.30 -0.03
assumed by such companies. 9.99 75.38 63.43 Colgate-Palmolive CL 2.2 26 71.98 0.16 32.10 23.77 GGP GGP 3.5 19 25.02 0.02
2.98 -1.14 42.26 28.30 LibertyProperty LPT 4.9 16 39.05 -0.11
-5.23 16.09 9.70 ColonyNorthStar CLNS ... 37 14.14 -0.09 s 9.58 56.94 38.98 Gallagher AJG 2.7 25 56.94 0.47 9.30 83.78 64.18 EliLilly LLY 2.6 31 80.39 0.35
6.25 73.85 32.74 Comerica CMA 1.3 27 72.37 -0.18 9.05 30.74 17.00 Gap GPS 3.8 15 24.47 0.41 8.18 73.31 34.16 LincolnNational LNC 1.6 14 71.69 -0.97
25.46 11.22 5.31 SABESP SBS 0.6 11 10.89 -0.01 2.04 105.45 80.82 Gartner IT ... 47 103.13 -0.30 2.30 29.03 26.09 LionsGate A LGF/A ... dd 27.52 -0.18
YTD 52-Week Yld Net 23.22 4.24 1.09 CiaSiderurgica SID 1.6 23 3.98 -0.04 16.78 10.97 7.15 Gazit-Globe GZT ... 3 10.09 0.04 s 11.62 29.71 19.41 LiveNationEnt LYV ... dd 29.69 0.40
% Chg Hi Lo Stock Sym % PE Last Chg 18.75 71.79 26.91 CSC CSC 0.8 dd 70.56 -0.28 s 9.50 189.10 127.74 GeneralDynamics GD 1.6 20 189.06 0.32 8.39 4.42 2.47 LloydsBanking LYG 2.6 40 3.36 -0.06
0.15 40.29 32.03 ConagraBrands CAG 2.0 28 39.61 -0.32 -3.89 33.00 28.19 GeneralElec GE 3.2 29 30.37 -0.08 6.17 269.90 210.90 LockheedMartin LMT 2.7 20 265.35 0.02
-6.50 18.12 12.36 BRF BRFS ... 29 13.80 -0.37 5.63 147.55 87.55 ConchoRscs CXO ... dd 140.06 -0.13 -4.11 72.95 58.19 GeneralMills GIS 3.2 22 59.23 -2.31 0.32 48.05 35.79 Loews L 0.5 94 46.98 -0.07
-13.89 35.00 19.14 BT Group BT 3.0 13 19.83 0.15 -5.25 53.17 31.82 ConocoPhillips COP 2.2 dd 47.51 -0.83 6.83 38.38 27.34 GeneralMotors GM 4.1 6 37.22 0.19
7.90 83.65 64.85 Lowe's LOW 1.8 28 76.74 0.42
-6.48 68.59 38.16 BakerHughes BHI 1.1 dd 60.76 -0.44 -0.24 81.88 68.44 ConEd ED 3.8 18 73.50 -0.79 5.37 105.97 86.61 GenuineParts GPC 2.6 22 100.67 1.44 -2.77 59.58 44.85 Luxottica LUX 1.9 ... 52.21 -0.54
-2.40 82.24 65.16 Ball BLL 0.7 49 73.27 0.29 5.22 173.55 137.25 ConstBrands A STZ 1.0 27 161.32 2.81 35.99 4.39 0.87 Gerdau GGB 0.5 dd 4.27 -0.06
8.31 97.64 69.82 LyondellBasell LYB 3.7 10 92.91 0.22
-1.48 7.67 5.14 BancoBilbaoViz BBVA ... 24 6.67 -0.11 5.42 175.50 138.49 ConstBrands B STZ/B 0.9 27 161.50 1.80 -1.34 32.20 22.63 Gildan GIL 1.2 11 25.03 0.19
7.34 170.81 101.95 M&T Bank MTB 1.7 22 167.91 0.33
2.23 73.40 58.40 BancodeChile BCH 4.0 14 72.02 -0.29 -10.81 60.30 16.92 ContinentalRscs CLR ... dd 45.97 -0.04 7.35 45.58 37.20 GlaxoSmithKline GSK 5.6 88 41.34 0.42
-7.73 30.62 17.34 MGM Resorts MGM ... 14 26.60 -0.26
-0.41 23.50 16.83 BcoSantChile BSAC 4.9 16 21.78 -0.10 s 11.99 196.03 138.27 Cooper COO 0.0 35 195.91 5.40 12.30 80.88 57.30 GlobalPayments GPN 0.1 47 77.95 0.28
10.46 39.43 21.82 MPLX MPLX 5.4 dd 38.24 0.23
5.41 5.74 3.60 BancoSantander SAN 4.3 12 5.46 -0.06 13.93 27.88 17.69 Corning GLW 2.2 9 27.65 -0.06 27.87 20.38 11.91 Goldcorp GG 0.5 64 17.39 -0.28
19.66 96.33 68.28 MSCI MSCI 1.2 35 94.27 0.07
3.03 42.58 28.76 BanColombia CIB 3.1 11 37.79 -0.60 3.17 31.60 17.94 Coty COTY 2.6 dd 18.89 0.20 4.56 251.95 138.20 GoldmanSachs GS 1.0 15 250.38 0.94
13.18 104.98 66.60 MSC Industrial MSM 1.7 27 104.57 -0.03
10.95 24.77 11.65 BankofAmerica BAC 1.2 18 24.52 -0.06 5.31 173.79 110.10 Credicorp BAP 1.4 ... 166.24 -0.42 9.78 262.71 201.94 Grainger GWW 1.9 26 254.96 0.16
-6.25 94.51 65.79 Macerich MAC 4.3106 66.41 -0.43
7.72 77.81 50.97 BankofMontreal BMO 3.4 11 77.47 -0.07 7.76 16.17 10.01 CreditSuisse CS ... dd 15.42 0.20 2.85 32.74 25.85 GreatPlainsEner GXP 3.9 20 28.13 0.16
-2.69 85.45 58.89 MacquarieInfr MIC 6.5 55 79.50 0.45
-0.51 49.54 33.82 BankNY Mellon BK 1.6 15 47.14 0.07 -8.68 18.95 10.48 CrescentPoint CPG 2.2 dd 12.41 0.89 2.27 9.04 6.43 GpoAvalAcciones AVAL 4.9 12 8.12 0.01
-9.80 45.50 28.55 Macy's M 4.7 15 32.30 0.48
12.19 62.89 37.54 BkNovaScotia BNS 3.5 11 62.47 -0.22 3.33 28.30 7.90 CrestwoodEquity CEQP 9.1 dd 26.40 -0.60 3.06 10.13 6.73 GpFinSantandMex BSMX 6.5 12 7.41 0.15
6.00 81.77 63.03 MagellanMid MMP 4.3 23 80.17 -0.86
7.00 12.05 6.76 Barclays BCS 1.8 dd 11.77 -0.12 2.84 102.82 79.38 CrownCastle CCI 4.3 95 89.23 -1.27 10.63 29.34 19.69 GrupoTelevisa TV 0.4 43 23.11 0.09
s 7.90 242.68 185.72 Bard CR 4.84 47.21 32.76 MagnaIntl MGA 2.2 7 45.50 0.35
BCR 0.4 34 242.41 0.62 0.40 57.49 44.93 CrownHoldings CCK ... 15 52.78 -0.25 4.85 33.18 20.65 GuangshenRail GSH 1.9 23 31.78 0.05 9.88 85.83 42.67 Mallinckrodt MNK ... 22 54.74 2.24
26.22 23.47 12.12 BarrickGold ABX 0.6 36 20.17 -0.33 6.68 94.32 46.21 Cullen/Frost CFR 2.3 20 94.12 0.50 14.33 84.88 66.03 HCAHoldings HCA ... 12 84.63 0.49
12.16 50.16 37.36 BaxterIntl BAX 1.0 6 49.73 0.31 9.54 98.99 57.26 Manpower MAN 1.8 15 97.35 1.26
11.88 153.62 93.27 Cummins CMI 2.7 19 152.91 0.73 4.54 36.81 25.21 HCP HCP 4.8 23 31.07 0.09 6.34 19.52 12.09 ManulifeFin MFC 3.3 13 18.95 0.06
9.27 181.75 142.38 BectonDickinson BDX 1.6 30 180.90 0.28 5.50 42.45 16.05 DCP Midstream DCP 7.7 25 40.49 -0.39 16.02 74.04 51.11 HDFC Bank HDB 0.6 ... 70.40 -0.20
6.09 70.89 51.03 Berkley WRB 0.7 15 70.56 -0.20 -6.24 19.28 6.52 MarathonOil MRO 1.2 dd 16.23 0.06
-0.40 100.45 81.75 DTE Energy DTE 3.4 20 98.12 -0.55 7.48 16.41 9.95 HP HPQ 3.3 11 15.95 0.03 -0.66 54.59 30.64 MarathonPetrol MPC 2.9 23 50.02 0.06
s 3.57 252860 194200 BerkHathwy A BRK/A ... 18 252838 1338.00 7.98 84.74 65.20 Danaher DHR 0.6 23 84.05 -0.20 9.28 44.18 28.62 HSBCHoldings HSBC 4.6 35 43.91 -0.20
s 3.43 168.70 128.88 BerkHathwy B BRK/B ... 18 168.57 0.83 -4.41 18.75 13.36 MarineHarvest MHG 7.7 13 17.33 -0.01
5.51 79.43 59.50 Darden DRI 2.9 22 76.73 0.93 -0.70 58.78 30.84 Halliburton HAL 1.3 dd 53.71 -0.60 6.66 989.18 811.05 Markel MKL ... 31 964.71 5.18
4.04 52.97 28.22 BerryPlastics BERY ... 23 50.70 0.39 4.21 78.77 54.50 DaVita DVA ... 19 66.90 2.24 -2.55 30.42 18.91 Hanesbrands HBI 2.9 15 21.02 0.17
s 8.77 73.52 56.51 Marsh&McLennan MMC 1.8 22 73.52 0.26
6.02 49.40 28.76 BestBuy BBY 2.5 14 45.24 -0.13 7.02 112.18 74.91 Deere DE 2.2 23 110.27 1.10 -2.42 62.35 40.91 HarleyDavidson HOG 2.6 15 56.93 0.51
6.03 194.20 128.12 Bio-RadLab A BIO ... 58 193.27 1.42 -1.80 243.98 133.62 MartinMarietta MLM 0.8 33 217.55 -3.98
12.04 78.00 58.04 DelphiAutomotive DLPH 1.5 18 75.46 0.24 -0.13 111.40 64.93 HarmanIntlInds HAR 1.3 22 111.01 0.03 6.01 37.38 26.83 Masco MAS 1.2 23 33.52 -0.15
2.16 399.46 297.89 BlackRock BLK 2.6 20 388.76 -3.21 4.15 52.76 32.60 DeltaAir DAL 1.6 9 51.23 0.40 s 6.82 109.47 73.32 Harris HRS 1.9 21 109.46 0.81
11.80 31.69 22.45 BlackstoneGroup BX 6.2 19 30.22 -0.18 5.98 111.07 84.59 Mastercard MA 0.8 30 109.42 0.12
7.24 20.94 11.19 DeutscheBank DB ... dd 19.41 -0.37 1.49 49.68 38.92 HartfordFinl HIG 1.9 22 48.36 -0.24 4.56 107.84 88.64 McCormick MKC 1.9 26 97.59 1.15
5.18 18.95 11.22 BoardwalkPipe BWP 2.2 15 18.26 -0.09 -3.28 50.69 18.07 DevonEnergy DVN 0.5 dd 44.17 0.06 -11.81 85.78 49.04 Helmerich&Payne HP 4.1 dd 68.26 -0.23
s 10.94 173.25 112.51 Boeing BA 3.3 23 172.71 1.90 3.74 108.26 89.14 McCormickVtg MKC/V 1.9 26 96.58 0.42
10.48 117.84 99.46 Diageo DEO 2.1 23 114.83 0.63 27.19 72.22 44.36 Herbalife HLF 2.0 22 61.23 0.17 5.00 131.96 110.33 McDonalds MCD 2.9 24 127.80 1.10
s 7.45 42.38 27.52 BorgWarner BWA 1.3 83 42.38 1.00 -6.23 62.88 37.94 Dick's DKS 1.4 17 49.79 1.29 3.69 117.79 87.92 Hershey HSY 2.3 32 107.25 -0.40
9.07 144.02 109.96 BostonProperties BXP 2.2 42 137.19 0.35 6.98 199.43 114.53 McKesson MCK 0.7 17 150.25 0.83
5.99 113.21 76.93 DigitalRealty DLR 3.4 47 104.15 1.01 -16.92 65.56 39.95 Hess HES 1.9 dd 51.75 0.45 23.66 94.40 69.25 MeadJohnson MJN 1.9 30 87.50 -0.10
17.38 25.65 16.82 BostonScientific BSX ... 98 25.39 0.03 -1.10 74.33 45.27 DiscoverFinSvcs DFS 1.7 12 71.30 0.46 5.45 24.79 12.82 HewlettPackard HPE 1.1 13 24.40 0.07
0.90 23.15 10.82 Braskem BAK 3.6 13 21.40 -0.09 5.12 76.96 59.36 Mednax MD ... 20 70.07 0.29
5.60 111.99 90.31 Disney DIS 1.4 20 110.06 -0.65 4.83 60.49 39.17 HiltonWorldwide HLT ... 56 58.50 -0.74 10.74 89.27 69.35 Medtronic MDT 2.2 26 78.88 0.89
-6.59 77.12 46.01 Bristol-Myers BMY 2.9 21 54.59 0.31 4.86 96.88 66.50 DollarGeneral DG 1.3 18 77.67 1.65 s 6.65 143.12 118.75 HomeDepot HD 1.9 23 143.00 1.46
-4.01 29.14 22.71 BrixmorProp BRX 4.4 26 23.44 -0.07 11.08 65.87 49.63 Merck MRK 2.9 32 65.39 0.13
-3.68 78.97 67.58 DominionRscs D 4.1 21 73.77 0.49 8.29 32.17 24.03 HondaMotor HMC ... 14 31.61 0.11 -1.71 58.09 36.17 MetLife MET 3.0 87 52.97 -0.68
3.44 71.74 55.23 BroadridgeFinl BR 1.9 28 68.58 -0.04 s 18.02 187.99 110.90 Domino's DPZ 0.8 47 187.93 1.83 s 7.52 124.56 100.67 Honeywell HON 2.1 20 124.56 0.40
s 13.21 37.41 29.17 BrookfieldMgt BAM 1.5 18 37.37 0.23 s 12.66 471.55 309.92 MettlerToledo MTD ... 33 471.55 5.27
0.38 46.29 27.65 Donaldson DCI 1.7 27 42.24 0.10 7.04 44.73 33.18 HormelFoods HRL 1.8 23 37.26 0.02 -10.89 59.49 34.92 MichaelKors KORS ... 9 38.30 0.09
8.37 37.38 23.31 BrookfieldInfr BIP 4.8 32 36.27 -0.06 7.00 39.47 25.35 DouglasEmmett DEI 2.4 71 39.12 ... 11.56 34.56 24.44 DR Horton DHI 1.3 12 30.49 0.06
-2.21 45.77 31.33 Brown&Brown BRO 1.2 24 43.87 0.11 1.74 110.01 85.04 MidAmApt MAA 3.5 36 99.62 0.15
6.69 82.32 58.15 Dover DOV 2.2 25 79.94 -0.04 -2.39 19.51 14.30 HostHotels HST 4.4 17 18.39 -0.19 9.09 7.01 4.13 MitsubishiUFJ MTU ... 11 6.72 -0.03
6.16 56.49 45.17 Brown-Forman A BF/A 1.5 19 49.10 0.15 7.06 61.85 46.18 DowChemical DOW 3.0 18 61.26 -0.15 6.34 37.79 22.84 HuanengPower HNP 10.4 7 27.69 -0.06
7.30 51.71 43.72 Brown-Forman B BF/B 1.5 18 48.20 0.38 3.62 3.87 2.69 MizuhoFin MFG ... 8 3.72 ...
3.65 98.80 81.05 DrPepperSnap DPS 2.5 21 93.98 -0.09 4.72 125.93 92.04 Hubbell HUBB 2.3 23 122.21 0.08 13.39 10.78 6.85 MobileTeleSys MBT 3.6 16 10.33 -0.21
10.01 61.07 40.76 Brunswick BC 1.1 20 60.00 0.10 -4.00 54.73 41.60 DrReddy'sLab RDY 0.7 47 43.47 -0.12 0.28 217.80 150.00 Humana HUM 0.8 52 204.60 -4.14
5.85 75.10 57.36 BuckeyePtrs BPL 7.1 17 70.03 -0.61 19.75 51.15 24.75 Mobileye MBLY ...117 45.65 0.68
5.57 78.40 57.76 DuPont DD 2.0 27 77.49 -0.30 s 15.05 213.65 129.53 HuntingtonIngalls HII 1.1 24 211.91 1.97 10.95 225.53 161.31 MohawkIndustries MHK ... 18 221.55 -0.23
s 7.67 77.82 48.74 Bunge BG 2.2 16 77.78 2.41 0.95 87.31 72.34 DukeEnergy DUK 4.4 25 78.36 -0.54 -3.09 58.05 42.75 HyattHotels H ... 35 53.55 -2.54
1.38 91.67 51.19 BurlingtonStores BURL ... 33 85.92 0.46 3.88 110.17 86.00 MolsonCoors A TAP/A 1.6 11 101.74 2.77
-5.08 28.99 20.10 DukeRealty DRE 3.0 29 25.21 -0.05 12.42 8.80 5.15 ICICI Bank IBN 1.8 19 8.42 0.05 4.40 112.19 84.24 MolsonCoors B TAP 1.6 11 101.59 1.79
13.17 19.50 10.07 CBD Pao CBD 0.1 dd 18.73 -0.16 -6.73 33.40 25.76 ENI E 6.0 dd 30.07 -0.51 1.91 15.02 9.26 ING Groep ING 6.3 ... 14.37 -0.26
s 13.31 35.78 24.11 CBRE Group CBG ... 21 35.68 0.66 3.60 114.26 83.73 Monsanto MON 2.0 30 109.00 0.51
-2.05 109.37 62.53 EOG Rscs EOG 0.7 dd 99.03 -1.14 7.25 33.34 23.02 Invesco IVZ 3.4 16 32.54 -0.01 s 19.76 112.98 83.71 Moody's MCO 1.3 24 112.90 2.68
3.59 67.59 49.92 CBS A CBS/A 1.1 24 67.14 1.09 -5.09 80.61 54.22 EQT EQT 0.2 dd 62.07 -0.18 2.58 95.76 73.47 IDEX IEX 1.5 26 92.38 0.16
3.25 66.88 44.90 CBS B CBS 1.1 24 65.69 0.27 9.23 46.75 22.68 MorganStanley MS 1.7 16 46.15 0.04
6.82 82.91 68.88 EQT Midstream EQM 4.2 16 81.91 -0.28 s 6.41 130.36 92.99 IllinoisToolWks ITW 2.0 23 130.31 0.05 14.52 34.36 22.77 Mosaic MOS 3.3 40 33.59 0.44
8.35 37.72 20.77 CF Industries CF 3.5 dd 34.11 0.59 6.70 81.08 61.53 EastmanChem EMN 2.5 14 80.25 -0.35 0.34 20.47 13.42 Infosys INFY 2.2 16 14.88 -0.11
1.35 50.58 40.46 CGI Group GIB ... 14 48.68 -0.05 -4.32 87.55 62.76 MotorolaSolutions MSI 2.4 24 79.31 0.65
6.77 72.28 54.30 Eaton ETN 2.1 17 71.63 -0.15 7.93 82.17 51.32 Ingersoll-Rand IR 2.0 14 80.99 -0.11 15.34 46.95 21.66 NCR NCR ... 28 46.78 0.22
2.44 43.99 27.61 CIT Group CIT 1.4 dd 43.72 1.06 5.74 124.60 98.62 Ecolab ECL 1.2 34 123.95 0.67 -3.34 140.00 99.45 Ingredion INGR 1.7 19 120.79 0.11
3.84 46.25 38.32 CMS Energy CMS 3.1 22 43.22 0.13 39.48 18.32 9.76 NRG Energy NRG 0.7 dd 17.10 -0.01
2.54 10.29 6.65 Ecopetrol EC ... dd 9.28 -0.11 3.51 60.54 45.44 ICE ICE 1.4 25 58.40 -0.25 4.04 28.43 21.96 NTTDoCoMo DCM ... 15 23.67 0.09
0.24 44.39 27.99 CNA Fin CNA 2.4 13 41.60 -0.30 6.04 78.72 62.83 EdisonInt EIX 2.8 28 76.34 0.55 8.73 50.51 34.63 InterContinentl IHG 1.2 9 48.20 -0.13
-1.89 138.36 100.38 CNOOC CEO 2.5 dd 121.62 -0.95 13.62 1920.52 1478.04 NVR NVR ... 18 1896.35 -0.97
-4.23 121.75 81.12 EdwardsLife EW ... 34 89.74 -0.19 8.84 182.79 129.68 IBM IBM 3.1 15 180.67 -0.76 2.67 74.97 56.50 NationalGrid NGG 5.3 15 59.89 -0.05
7.21 16.75 7.89 CPFLEnergia CPL 1.7 29 16.51 -0.05 11.01 64.36 47.18 EmersonElectric EMR 3.1 26 61.89 -1.01 3.85 143.64 102.31 IntlFlavors IFF 2.1 24 122.37 -1.66
-0.47 36.83 24.61 CRH CRH 1.2 27 34.22 -0.29 4.99 43.63 26.86 NatlOilwell NOV 0.5 dd 39.31 -0.93
-29.40 26.36 15.15 EnbridgeEnPtrs EEP 13.0 dd 17.99 -0.27 6.58 32.07 13.79 IntlGameTech IGT 2.9105 27.20 -0.22 1.18 53.59 39.86 NatlRetailProp NNN 4.1 36 44.72 0.21
0.99 106.67 69.30 CVS Health CVS 2.5 16 79.69 0.24 -0.26 45.77 29.63 Enbridge ENB ... 21 42.01 -0.24 -1.72 58.86 33.43 IntlPaper IP 3.5 24 52.15 -1.23
-1.07 26.74 18.73 CabotOil COG 0.3 dd 23.11 -0.01 17.39 53.38 30.01 NewOrientalEduc EDU ... 33 49.42 -0.07
5.20 13.85 3.00 Encana ECA 0.5 dd 12.35 -0.08 4.66 25.33 20.67 Interpublic IPG 2.9 16 24.50 0.01 -4.53 17.68 13.74 NY CmntyBcp NYCB 4.5 15 15.19 -0.11
11.60 15.88 10.36 CAE CAE 1.6 17 15.59 -0.03 0.52 93.10 61.06 Endurance ENH 1.6 15 92.88 0.04 5.75 21.87 19.80 InvitationHomes INVH ... ... 21.15 0.19
-2.38 90.91 72.78 CamdenProperty CPT 3.7 17 82.07 0.20 4.46 55.45 36.72 NewellBrands NWL 1.6 40 46.64 -0.24
19.49 9.91 6.69 EnelAmericas ENIA 1.5 14 9.81 -0.03 14.38 41.50 28.57 IronMountain IRM 5.9127 37.15 0.15 3.26 50.00 20.84 NewfieldExpln NFX ... dd 41.82 -0.32
11.94 13.59 7.41 Cameco CCJ 2.6 dd 11.72 -0.12 5.71 29.52 18.35 EnelGenChile EOCC 3.3 ... 20.55 -0.18 11.44 5.02 3.52 IsraelChemicals ICL 3.8 dd 4.58 -0.04
-3.29 67.89 52.59 CampbellSoup CPB 2.4 28 58.48 -4.07 8.63 46.07 24.08 NewmontMining NEM 0.5727 37.01 -0.56
-3.87 64.44 23.34 Energen EGN ... dd 55.44 -0.48 27.53 13.65 5.28 ItauUnibanco ITUB ... 13 13.11 -0.10
6.19 131.98 109.34 NextEraEnergy NEE 2.7 20 126.86 0.67
9.02 89.44 61.55 CIBC CM 4.2 8 88.96 -0.13 -1.29 20.05 5.94 EnergyTrfrEquity ETE 6.0 19 19.06 -0.06 4.57 91.04 54.33 JPMorganChase JPM 2.1 15 90.23 -0.30
6.32 71.83 55.27 CanNtlRlwy CNI 1.7 15 71.66 0.10 7.46 55.94 40.28 NielsenHoldings NLSN 2.8 33 45.08 0.23
7.01 43.50 24.37 EnergyTrfrPtrs ETP 11.0 dd 38.32 -0.06 1.07 63.42 36.69 JacobsEngineering JEC 1.0 31 57.61 -1.42
-5.68 35.28 18.79 CanNaturalRes CNQ 2.5 dd 30.07 -0.27 11.65 65.44 49.01 Nike NKE 1.3 25 56.75 0.46
-1.27 10.33 2.43 Enerplus ERF 1.0 dd 9.36 -0.08 -9.37 17.30 12.00 JamesHardie JHX 1.4 25 14.41 -0.32
4.83 157.34 117.21 CanPacRlwy CP 1.0 14 149.67 -1.28 -0.76 49.67 38.45 NipponTelegraph NTT ... 12 41.75 0.15
3.04 19.89 7.30 EnLinkMidPtrs ENLK 8.2 dd 18.98 0.29 3.17 126.07 102.97 J&J JNJ 2.7 20 118.86 0.78
3.87 30.93 27.18 Canon CAJ 4.8 23 29.23 -0.07 2.53 26.94 20.94 NiSource NI 3.1 25 22.70 0.03
0.11 82.08 66.71 Entergy ETR 4.7 dd 73.55 0.78 1.75 46.17 30.93 JohnsonControls JCI 2.4 dd 41.91 0.23
s 5.24 92.04 58.02 CapitalOne COF 1.7 13 91.81 1.30 -2.65 42.03 27.85 NobleEnergy NBL 1.1 dd 37.05 -0.16
6.73 30.25 21.75 EnterpriseProd EPD 5.7 24 28.86 -0.01 0.32 28.55 11.15 JoyGlobal JOY 0.1 dd 28.09 -0.06
12.14 87.85 62.70 CardinalHealth CAH 2.2 19 80.71 0.47 4.99 6.31 4.04 Nokia NOK 5.7 dd 5.05 -0.02
13.11 83.27 57.32 EnvisionHlthcr EVHC ... 21 71.59 2.33 0.46 29.21 21.18 JuniperNetworks JNPR 1.4 18 28.39 0.30
-4.01 116.40 87.09 Carlisle CSL 1.3 28 105.87 0.22 10.07 136.97 99.79 Equifax EFX 1.2 32 130.14 9.06 47.03 33.09 KAR Auction KAR 2.8 29 46.48 12.37 6.80 3.33 NomuraHoldings NMR ... 16 6.63 -0.07
0.21 -0.03
4.08 69.11 43.47 CarMax KMX ... 21 67.02 -1.26 6.10 83.19 65.87 EquityLife ELS 2.2 40 76.50 17.23 42.04 23.75 KB Fin KB ... 9 41.37 -4.67 62.82 35.01 Nordstrom JWN 3.2 24 45.69 1.51
0.37 0.19
6.42 57.79 42.94 Carnival CCL 2.5 15 55.40 -0.63 -4.32 75.49 58.28 EquityResdntl EQR 3.3 41 61.58 -0.30 18.58 18.40 11.63 KKR KKR 3.5 34 18.25 0.24 13.61 123.42 72.01 NorfolkSouthern NSC 2.0 22 122.78 -0.15
4.73 253.80 185.08 NorthropGrumman NOC 1.5 20 243.58 0.05
6.08 56.33 43.45 Carnival CUK 2.6 14 54.30 -0.56 -1.89 237.50 200.01 EssexProp ESS 2.8 36 228.10 0.22 10.50 16.79 11.72 KT KT ... 18 15.57 0.07
6.59 99.46 63.07 Caterpillar CAT 3.1 dd 98.85 0.59 2.40 100.69 79.05 KSCitySouthern KSU 1.5 20 86.89 5.99 83.58 66.93 Novartis NVS 3.6 28 77.20 0.47
11.13 97.48 75.30 EsteeLauder EL 1.6 29 85.00 1.73 0.04
13.84 89.94 57.49 Celanese A CE 1.6 15 89.64 0.61 8.65 236.40 169.19 EverestRe RE 2.1 10 235.12 -0.39 -1.10 87.16 70.73 Kellogg -1.12 57.81 30.89 NovoNordisk NVO 1.9 16 35.46 0.02
K 2.9 37 72.90 -1.81
7.36 68.00 37.77 Nucor NUE 2.4 28 63.90 0.29
8.09 9.51 4.74 Cemex CX ... 17 8.68 -0.04 1.67 60.44 50.56 EversourceEner ES 3.4 20 56.15 -0.14 5.60 38.00 24.00 KeyEnergySvcs KEG ... dd 33.74 -0.06
10.24 10.13 6.37 Cencosud CNCO 2.0 15 9.26 0.12 0.25 37.70 29.82 Exelon EXC 3.7 29 35.58 0.16 3.78 19.21 10.21 KeyCorp KEY 1.8 23 18.96 -0.03 7.85 55.64 30.45 NuSTAREnergy NS 8.2 43 53.71 -0.49
-9.72 16.82 10.02 CenovusEnergy CVE 1.1 dd 13.66 -0.21 0.01 94.81 68.09 ExtraSpaceSt EXR 4.0 33 77.25 s 3.69 38.48 22.16 KeysightTechs KEYS ... 17 37.92 s 3.50 34.76 24.39 OGE Energy OGE 3.5 22 34.62 ...
2.38 -0.30
19.64 75.57 50.00 Centene CNC ... 21 67.61 -2.46 -9.42 95.55 79.67 ExxonMobil XOM 3.7 43 81.76 -0.54 3.74 77.54 51.16 KilroyRealty KRC 2.0 25 75.96 -0.25 -6.57 59.47 19.94 ONEOK OKE 4.6 40 53.64 -0.39
7.59 26.69 18.30 CenterPointEner CNP 4.0 dd 26.51 0.14 2.95 62.84 35.68 FMC FMC 1.1 38 58.23 0.40 15.61 138.87 111.30 KimberlyClark KMB 2.9 22 131.93 5.31 21.04 57.41 24.42 ONEOK Partners OKS 6.1 39 52.06 -0.32
0.87 7.70 1.36 CentraisElBras EBR ... 32 6.92 -0.22 11.16 183.17 143.08 FactSet FDS 1.1 21 181.67 1.58 -3.30 32.24 24.02 KimcoRealty KIM 4.4 50 24.33 0.10 -6.96 78.48 64.37 OccidentalPetrol OXY 4.6 dd 66.27 -0.17
2.10 33.45 22.86 CenturyLink CTL 8.9 21 24.28 ... -1.02 171.08 134.39 FederalRealty FRT 2.8 46 140.66 0.16 5.12 23.36 16.63 KinderMorgan KMI 2.3 87 21.77 -0.02 -9.37 4.78 2.65 Och-Ziff OZM ... dd 3.00 0.09
s 49.66 33.39 3.80 Chemours CC 0.41102 33.06 1.16 4.03 201.57 128.07 FedEx FDX 0.8 28 193.70 0.35 24.76 5.82 2.68 KinrossGold KGC 4.1 dd 3.88 -0.05 8.58 21.19 16.51 OldRepublic ORI 3.6 13 20.63 -0.12
-13.11 8.20 1.90 ChesapeakeEner CHK ... dd 6.10 0.02 24.45 11.63 5.45 FiatChrysler FCAU ... 9 11.35 -0.20 -15.01 59.67 33.87 Kohl's KSS 4.8 13 41.97 0.44 1.44 38.09 28.11 OmegaHealthcare OHI 7.8 17 31.71 ...
-6.26 119.00 82.90 Chevron CVX 3.9 dd 110.33 -0.35 10.84 38.50 30.62 FidelityNatlFin FNF 2.7 18 37.64 0.13 -3.27 30.79 23.00 KoninklijkePhil PHG 2.9 17 29.57 0.12 0.27 89.66 75.40 Omnicom OMC 2.6 18 85.34 0.02
20.72 31.59 21.38 ChinaEastrnAir CEA ... 9 26.98 -0.39 -6.93 14.50 9.29 FNFV Group FNFV ... 8 12.75 0.30 -3.63 28.37 17.36 KoreaElcPwr KEP ... 3 17.81 0.02 s 9.39 42.06 35.77 Oracle ORCL 1.4 20 42.06 0.47
20.90 15.86 10.07 ChinaLifeIns LFC 2.1 41 15.56 -0.10 s 8.47 82.05 57.80 FidelityNtlInfo FIS 1.4 47 82.05 0.33 -1.45 40.91 28.71 Kroger KR 1.4 16 34.01 0.07 1.52 18.32 13.98 Orange ORAN 2.8 16 15.37 -0.29
7.02 63.89 51.73 ChinaMobile CHL 3.4 14 56.11 -0.33 15.36 16.63 9.90 FirstData FDC ... 36 16.37 0.19 10.49 55.38 41.23 Kyocera KYO ... 19 55.00 0.15 0.09 82.58 60.79 Orix IX ... 8 77.90 1.06
9.90 81.64 53.74 ChinaPetrol SNP 3.1 17 78.05 0.56 3.76 97.29 57.89 FirstRepBank FRC 0.7 25 95.60 -0.16 27.02 10.47 5.65 LATAMAirlines LFL ... dd 10.39 -0.06 11.38 58.69 40.70 OwensCorning OC 1.4 17 57.43 0.21
22.68 36.29 25.60 ChinaSoAirlines ZNH 1.9 7 31.54 -0.30 0.13 36.60 29.33 FirstEnergy FE 4.6 dd 31.01 0.39 t-12.65 88.77 56.01 L Brands LB 4.2 15 57.51 0.03 5.18 65.43 54.71 PG&E PCG 3.1 23 63.92 0.53
3.69 55.85 42.29 ChinaTelecom CHA 2.6 12 47.83 -0.17 17.63 176.42 124.20 FleetCorTech FLT ... 35 166.47 -0.07 -3.58 14.36 9.20 LGDisplay LPL ...102 12.39 0.07 Continued on Page B5
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Continued From Page B4
YTD 52-Week Yld Net
% Chg Hi Lo Stock Sym % PE Last Chg
4.36 47.92 25.50 PLDT PHI 7.3 23 28.75 -0.63
8.46 127.92 77.40 PNC Fin PNC 1.7 17 126.86 -0.10
s 18.10 62.09 39.19 POSCO PKX ... 17 62.06 1.34
8.03 117.00 89.64 PPG Ind PPG 1.6 31 102.37 0.60
4.64 39.92 32.08 PPL PPL 4.4 13 35.63 -0.09
0.09 115.40 71.88 PVH PVH 0.2 13 90.32 1.95
12.31 96.87 44.32 PackagingCpAm PKG 2.6 20 95.26 -1.36
23.76 165.69 114.64 PaloAltoNtwks PANW ... dd 154.76 1.83
-9.63 33.40 25.77 ParkHotels PK ... ... 27.02 -0.71
9.92 156.44 98.46 ParkerHannifin PH 1.7 24 153.89 -0.52
-9.70 39.82 15.69 ParsleyEnergy PE ... dd 31.82 -0.04
-17.02 13.20 7.04 Pearson PSO 5.7 dd 8.29 0.08
4.44 32.78 23.24 PembinaPipeline PBA 4.5 31 32.71 0.07
3.67 66.99 46.51 Pentair PNR 2.4 20 58.13 -0.41
3.36 110.94 97.54 PepsiCo PEP 2.8 25 108.15 0.03
7.27 57.28 45.35 PerkinElmer PKI 0.5 26 55.94 0.62
1.49 140.65 71.84 Perrigo PRGO 0.7 dd 84.47 1.35
4.93 81.80 61.81 PetroChina PTR 0.8132 77.33 ...
6.53 12.55 3.07 PetroleoBrasil PBR ... dd 10.77 -0.12
13.96 11.77 2.15 PetroleoBrasilA PBR/A ... dd 10.04 -0.11
3.51 37.39 28.74 Pfizer PFE 3.8 29 33.62 ...
13.30 104.20 86.78 PhilipMorris PM 4.0 23 103.66 0.67
-8.97 90.87 73.67 Phillips66 PSX 3.2 27 78.66 0.16
2.64 55.36 40.16 PinnacleFoods PF 2.1 32 54.86 0.25
0.86 82.78 66.35 PinnacleWest PNW 3.3 20 78.70 0.15
6.63 199.83 115.17 PioneerNatRscs PXD 0.0 dd 192.00 -1.21
-3.84 33.95 18.50 PlainsAllAmPipe PAA 7.1 76 31.05 -0.28
5.79 104.25 70.14 PolarisIndustries PII 2.7 27 87.16 0.69
3.68 89.00 66.22 PostHoldings POST ...126 83.35 -0.39
3.48 20.27 15.21 Potash POT 2.1 35 18.72 0.02
0.20 125.00 100.80 Praxair PX 2.7 22 117.42 -0.08
7.36 62.88 35.73 PrincipalFin PFG 2.9 14 62.12 -0.48
s 8.34 91.36 79.10 Procter&Gamble PG 2.9 27 91.09 0.30
8.65 38.61 30.54 Progressive PGR 1.8 23 38.57 -0.04
-4.93 54.87 37.02 Prologis PLD 3.3 22 50.19 0.07
6.77 112.28 62.62 PrudentialFin PRU 2.7 11 111.11 -0.25
1.31 42.20 29.14 Prudential PUK 1.7 19 40.31 -0.46
-0.89 47.41 39.28 PublicServiceEnt PEG 3.8 17 43.49 -0.17
1.01 277.60 200.65 PublicStorage PSA 3.5 35 225.76 5.12
16.43 22.40 16.31 PulteGroup PHM 1.7 12 21.40 0.06
6.86 38.08 17.83 QuantaServices PWR ... 54 37.24 -0.49
4.07 96.45 65.06 QuestDiag DGX 1.9 21 95.64 0.34
0.92 83.04 60.95 QuintilesIMS Q ... ... 76.75 -0.12
4.47 18.34 14.92 RELX RENX 1.6 23 17.51 0.04
4.51 19.84 16.19 RELX RELX 1.4 24 18.78 0.02
-1.43 55.92 38.83 RPM RPM 2.3 34 53.06 0.39
-5.24 46.92 18.93 RSP Permian RSPP ... dd 42.28 -0.54
-13.21 114.00 75.62 RalphLauren RL 2.6 45 78.39 -0.08
-8.99 46.96 21.69 RangeResources RRC 0.3 dd 31.27 0.03
13.84 79.27 41.48 RaymondJames RJF 1.1 20 78.86 -0.21
s 7.65 152.94 120.24 Raytheon RTN 1.9 21 152.86 0.47
5.78 72.30 52.72 RealtyIncome O 4.2 55 60.80 0.22
18.51 82.73 63.66 RedHat RHT ... 63 82.60 1.07
1.16 85.35 65.16 RegencyCtrs REG 2.9 58 69.75 0.23
7.10 15.66 7.21 RegionsFin RF 1.7 18 15.38 -0.21
2.59 132.31 88.10 ReinsuranceGrp RGA 1.3 12 129.09 -0.07
8.80 88.58 58.06 RelianceSteel RS 2.1 21 86.54 -1.07
s 7.21 146.40 107.27 RenaissanceRe RNR 0.8 13 146.04 -0.13
s 6.49 60.79 45.31 RepublicServices RSG 2.1 36 60.75 1.70
s 16.47 72.35 55.13 ResMed RMD 1.8 31 72.27 0.35
13.09 55.23 31.58 RestaurantBrands QSR 1.3 28 53.90 0.05
8.37 60.91 43.38 ReynoldsAmer RAI 3.4 14 60.73 0.02
18.30 47.11 25.06 RioTinto RIO 5.5 19 45.50 -0.63
-27.91 8.77 5.20 RiteAid RAD ... 79 5.94 0.07
-0.39 50.98 34.34 RobertHalf RHI 2.0 18 48.59 0.52
13.04 155.44 99.67 Rockwell ROK 2.0 26 151.92 0.04
0.75 96.55 78.54 RockwellCollins COL 1.4 17 93.46 -0.06
13.92 45.50 35.62 RogersComm B RCI 3.3 27 43.95 0.29
9.33 37.29 26.21 Rollins ROL 1.2 48 36.93 -0.02
13.14 207.60 159.28 RoperTech ROP 0.7 32 207.14 0.33
11.70 75.83 47.40 RoyalBkCanada RY 3.3 11 75.63 0.17
9.58 7.60 3.91 RoyalBkScotland RBS ... dd 6.06 -0.05
16.05 97.42 64.95 RoyalCaribbean RCL 2.0 16 95.21 -0.72
-4.01 56.39 42.85 RoyalDutchA RDS/A 7.2 48 52.20 -0.76
-4.57 59.56 42.84 RoyalDutchB RDS/B 6.8 51 55.32 -1.01
6.98 92.93 71.39 SAP SAP 1.4 28 92.46 -0.29
s 21.25 130.42 85.36 S&P Global SPGI 1.3 16 130.39 1.78
13.17 63.75 40.88 SINOPECShanghai SHI 2.5 8 61.26 -1.10
4.69 23.17 18.93 SK Telecom SKM ... 11 21.88 -0.11
3.47 120.63 84.30 SLGreenRealty SLG 2.8 48 111.28 0.57
19.00 84.48 60.33 Salesforce.com CRM ...272 81.47 0.65
6.73 44.50 36.81 Sanofi SNY 3.7 24 43.16 -0.38
-0.38 33.31 24.85 Sasol SSL 4.7 20 28.48 -0.09
-10.41 76.41 62.85 Scana SCG 3.7 17 65.65 -1.67
-3.93 87.84 70.40 Schlumberger SLB 2.5 dd 80.65 -0.48
5.27 42.61 23.00 SchwabC SCHW 0.8 32 41.55 ...
-1.72 98.82 65.01 ScottsMiracleGro SMG 2.1 31 93.91 -0.08
5.34 52.83 42.01 SealedAir SEE 1.3 20 47.76 -0.15
-8.92 7.74 3.84 SemicondctrMfg SMI ... 2 6.94 ...
5.18 114.66 92.95 SempraEnergy SRE 2.9 20 105.85 -0.05
6.65 43.68 32.07 SensataTech ST ... 27 41.54 0.07
10.28 32.21 22.33 ServiceCorp SCI 1.7 35 31.32 -0.03
24.75 94.72 50.00 ServiceNow NOW ... dd 92.74 0.89
6.63 21.73 16.51 ShawComm B SJR 4.2 22 21.39 -0.03
15.86 312.48 239.48 SherwinWilliams SHW 1.1 26 311.35 0.18
s 10.04 41.43 30.57 ShinhanFin SHG ... 9 41.42 0.03
43.50 62.47 19.51 Shopify SHOP ... dd 61.52 0.55
* * * * NY Saturday/Sunday, February 18 - 19, 2017 | B5
BIGGEST 1,000 STOCKS
YTD 52-Week Yld Net YTD 52-Week Yld Net YTD 52-Week Yld Net YTD 52-Week Yld Net
% Chg Hi Lo Stock Sym % PE Last Chg % Chg Hi Lo Stock Sym % PE Last Chg % Chg Hi Lo Stock Sym % PE Last Chg % Chg Hi Lo Stock Sym % PE Last Chg
11.44 31.35 14.98 SilverWheaton SLW 1.14394 21.53 -0.29 s 11.59 180.00 123.82 VailResorts MTN 1.8 47 180.00 0.13 s 15.17 60.00 37.20 CDW CDW 1.1 24 59.99 1.16 0.54 57.97 29.68 Microsemi MSCC ... dd 54.26 0.32
1.92 229.10 173.11 SimonProperty SPG 3.9 32 181.09 1.91 43.96 11.49 2.69 Vale VALE ... dd 10.97 0.11 s 7.92 79.09 65.57 CH Robinson CHRW 2.3 22 79.06 1.00 3.99 65.91 48.03 Microsoft MSFT 2.4 30 64.62 0.10
2.82 62.69 47.61 SixFlags SIX 4.2 50 61.65 -0.14 10.47 92.42 13.00 ValeantPharm VRX ... dd 16.04 -0.18 6.30 124.01 89.00 CME Group CME 2.2 27 122.62 0.79 7.30 143.60 83.81 Middleby MIDD ... 31 138.21 0.46
4.73 51.49 33.77 SmithAO AOS 1.1 27 49.59 -0.09 -4.14 71.40 46.88 ValeroEnergy VLO 4.3 13 65.49 -1.11 35.10 49.13 23.58 CSX CSX 1.5 27 48.54 0.85 -4.13 46.40 39.21 Mondelez MDLZ 1.8 41 42.50 -0.70
1.20 35.38 26.96 Smith&Nephew SNN 1.6 18 30.44 -0.22 s 7.13 111.46 75.19 Valspar VAL 1.3 26 111.00 -0.08 s 19.75 30.20 20.43 CadenceDesign CDNS ... 43 30.20 -0.04 -1.60 55.50 40.30 MonsterBeverage MNST ... 39 43.63 0.18
6.16 157.31 121.79 Smucker SJM 2.2 22 135.95 -1.89 8.79 65.18 49.44 Vantiv VNTV ... 49 64.86 0.32 4.67 127.00 94.39 Celgene CELG ... 49 121.16 2.50 10.22 50.40 33.60 Mylan MYL ... 82 42.05 0.05
0.76 181.73 142.55 SnapOn SNA 1.6 19 172.57 -0.74 5.16 94.48 67.23 VarianMed VAR ... 24 83.61 1.68 18.53 67.50 47.01 Cerner CERN ... 31 56.15 0.54 4.48 107.54 66.03 NXP Semi NXPI ... dd 102.40 -0.09
11.69 34.84 16.68 SOQUIMICH SQM 5.1 35 32.00 -1.03 24.72 15.70 3.88 Vedanta VEDL 1.3 dd 15.49 -0.05 13.42 341.50 185.97 CharterComms CHTR ... 21 326.55 2.09 6.54 71.92 61.19 Nasdaq NDAQ 1.8115 71.51 0.17
11.81 34.17 20.97 Sony SNE ... dd 31.34 0.04 7.76 47.95 21.60 VeevaSystems VEEV ... 96 43.86 0.17 19.83 101.77 74.34 CheckPointSftw CHKP ... 24 101.21 0.21 13.89 42.18 22.50 NetApp NTAP 1.9 37 40.17 -0.39
-2.83 54.64 46.20 Southern SO 4.7 18 47.80 -0.44 -0.58 76.80 50.92 Ventas VTR 5.0 35 62.16 -0.41 -4.07 79.60 61.96 CincinnatiFin CINF 2.8 20 72.67 -0.42 38.04 299.68 130.82 Netease NTES 1.0 26 297.25 -1.48
16.78 39.50 23.54 SoCopper SCCO 0.9 37 37.30 -0.68 -7.85 56.95 46.01 Verizon VZ 4.7 15 49.19 0.73 2.64 122.21 81.91 Cintas CTAS 1.1 26 118.61 -0.90 14.88 145.95 84.50 Netflix NFLX ...339 142.22 0.21
15.01 58.06 35.42 SouthwestAirlines LUV 0.7 16 57.32 0.98 -5.60 44.95 24.63 VermilionEnergy VET 4.9 dd 39.81 0.11 11.65 33.97 25.65 CiscoSystems CSCO 3.4 17 33.74 0.14 14.14 14.68 10.49 NewsCorp A NWSA 1.5 dd 13.08 0.03
... 44.00 27.67 SpectraEnergy SE 4.3 91 41.09 -0.32 10.45 17.41 10.21 Vipshop VIPS ... 27 12.16 -0.13 s 13.19 80.77 53.44 CitrixSystems CTXS ... 24 80.50 0.56 14.41 15.22 10.90 NewsCorp B NWS 1.5 dd 13.50 0.10
-0.68 50.48 40.19 SpectraEnerPtrs SEP 6.1 15 45.53 0.46 s 15.86 91.60 47.48 VMware VMW ... 33 91.22 0.27 s 20.15 77.94 35.15 Cognex CGNX 0.4 80 76.44 5.99 7.05 120.91 62.50 Nordson NDSN 0.9 25 119.95 0.77
9.47 138.95 92.61 SpectrumBrands SPB 1.3 24 133.91 0.44 s 5.19 110.17 83.10 VornadoRealty VNO 2.6 25 109.79 -0.19 3.44 63.23 45.44 CognizantTech CTSH ... 23 57.96 -0.14 -2.08 91.14 56.77 NorthernTrust NTRS 1.7 20 87.20 -0.14
-0.36 61.55 41.27 SpiritAeroSys SPR 0.7 16 58.14 0.31 6.83 42.92 22.75 VoyaFinancial VOYA 0.1 dd 41.90 -0.60 9.08 76.87 56.60 Comcast A CMCSA 0.8 21 75.32 -0.67 12.13 55.59 34.16 NorwegianCruise NCLH ... 18 47.69 0.06
s 2.27 59.31 39.19 CommerceBcshrs CBSH 1.5 23 59.12
10.45 9.65 2.87 Sprint S ... dd 9.30 0.30 -4.65 138.18 92.26 VulcanMaterials VMC 0.8 41 119.33 -1.07 0.40 0.46 120.92 29.65 NVIDIA NVDA 0.5 42 107.23 -0.02
s 6.05 39.69 23.30 CommScope COMM ... 84 39.45
10.43 128.77 91.57 StanleyBlackDck SWK 1.8 19 126.65 0.25 8.86 118.50 84.48 WABCO WBC ... 33 115.56 -0.22 0.12 -3.70 292.84 248.02 OReillyAuto ORLY ... 25 268.12 1.27
4.24 23.46 17.29 StarwoodProp STWD 8.4 16 22.88 -0.05 -1.89 66.10 53.66 EWEC Energy WEC 3.6 20 57.54 0.06 6.50 59.86 35.15 Copart CPRT ... 18 59.01 -0.82 7.66 93.49 56.74 OldDomFreight ODFL 0.4 26 92.36 -0.07
3.80 83.49 50.59 StateStreet STT 1.9 16 80.67 -0.09 7.12 72.89 54.37 W.P.Carey WPC 6.3 34 63.30 -0.06 11.25 224.79 161.66 CoStarGroup CSGP ... 86 209.69 1.16 22.26 15.86 7.50 ON Semi ON ... 36 15.60 0.07
s 9.84 176.50 138.57 Costco
-3.67 19.27 13.25 Statoil STO 5.0 dd 17.57 -0.13 -7.21 16.17 3.51 WPX Energy WPX ... dd 13.52 -0.09 COST 1.0 32 175.86 0.11 8.53 35.07 23.91 OpenText OTEX 1.4 7 33.54 -0.42
1.72 74.63 61.64 Steris STE 1.6 42 68.55 0.11 14.07 49.62 37.36 Ctrip.com CTRP ... dd 45.63 0.12
5.72 89.18 65.54 Wabtec WAB 0.5 22 87.77 -0.28 17.27 55.07 29.18 PTC PTC ... dd 54.26 0.60
25.64 14.53 5.11 STMicroelec STM 1.7163 14.26 -0.22 0.36 75.19 62.72 Wal-Mart WMT 2.9 15 69.37 0.50 8.56 63.99 42.45 DISH Network DISH ... 30 62.89 0.17 7.75 70.12 48.17 Paccar PCAR 1.4 47 68.85 0.13
5.45 127.23 96.22 Stryker SYK 1.3 29 126.34 0.59 8.57 65.83 55.00 DentsplySirona XRAY 0.6 32 62.68
s 6.37 83.70 58.40 WasteConnections WCN 0.9 41 83.60 0.83 1.94 2.09 57.09 30.59 PacWestBancorp PACW 3.6 19 55.58 -0.35
4.45 8.30 5.29 SumitomoMits SMFG ... 10 7.98 -0.06 s 2.17 72.47 54.86 WasteMgt WM 2.3 27 72.45 1.27 37.17 96.38 56.52 DexCom DXCM ... dd 81.89 0.50 -2.87 62.18 50.45 Paychex PAYX 3.1 28 59.13 -0.36
5.64 85.98 65.45 SunCommunities SUI 3.2 45 80.93 -0.06 6.50 114.00 67.52 DiamondbackEner FANG ... dd 107.63 -1.38
14.84 162.53 118.93 Waters WAT ... 24 154.33 1.33 6.31 44.52 34.00 PayPal PYPL ... 36 41.96 -0.19
-0.86 40.57 27.86 SunLifeFinancial SLF 3.4 9 38.08 -0.11 2.94 159.55 123.64 Watsco WSO 2.8 30 152.48 0.69 4.63 29.75 23.66 DiscoveryComm A DISCA ... 15 28.68 0.11 -0.88 20.13 13.80 People'sUtdFin PBCT 3.5 21 19.19 -0.09
-1.59 33.79 23.10 SuncorEnergy SU 3.1124 32.17 -0.31 4.89 28.91 22.43 DiscoveryComm C DISCK ... 14 28.09 0.10
14.23 8.49 3.73 WeatherfordIntl WFT ... dd 5.70 -0.26 11.69 1658.97 1148.06 Priceline PCLN ... 42 1637.40 -11.48
7.04 31.49 20.66 SunocoLogistics SXL 8.1 51 25.71 -0.10 0.27 151.93 81.83 WellCareHealth WCG ... 25 137.45 -3.70 3.65 99.93 72.55 DollarTree DLTR ... 24 80.00 2.00 -0.71 30.09 20.71 Qiagen QGEN ... 84 28.89 0.19
8.64 60.31 32.45 SunTrustBanks STI 1.7 17 59.59 -0.26 4.90 56.30 41.29 Dunkin' DNKN 2.3 26 55.01 0.06
5.41 59.01 43.55 WellsFargo WFC 2.6 15 58.09 -0.03 27.29 67.68 40.11 Qorvo QRVO ... dd 67.12 -0.03
1.13 38.05 23.25 SynchronyFin SYF 1.4 14 36.68 -0.17 -1.51 80.19 57.86 Welltower HCN 5.3 38 65.92 -0.16 7.27 38.61 21.52 E*TRADE ETFC ... 19 37.17 ... -13.40 71.62 48.76 Qualcomm QCOM 3.8 17 56.46 -0.42
7.98 89.13 74.52 Syngenta SYT 2.6 33 85.36 -0.49 5.86 54.50 28.27 EastWestBancorp EWBC 1.5 19 53.81 -0.31
-2.00 88.30 56.01 WestPharmSvcs WST 0.6 43 83.13 1.07 19.43 126.55 67.54 RandgoldRscs GOLD 0.7 38 91.17 -0.53
-5.45 57.07 42.05 Sysco SYY 2.5 28 52.35 -0.28 -5.86 57.50 41.89 WestarEnergy WR 2.9 23 53.05 0.29 13.71 34.15 22.30 eBay EBAY ... 5 33.76 0.22 1.11 452.96 325.35 RegenPharm REGN ... 49 371.18 -1.84
19.19 87.98 47.69 TAL Education TAL ... 81 83.61 -0.97 10.84 88.28 58.10 ElectronicArts EA ... 22 87.30 -0.55
7.60 53.60 28.69 WestAllianceBcp WAL ... 21 52.41 -0.23 4.50 69.81 52.00 RossStores ROST 0.8 25 68.55 0.29
8.56 76.49 54.54 TE Connectivity TEL 2.0 13 75.21 -0.02 11.00 47.82 19.91 WesternGasEquity WGP 3.9 47 47.01 ... 4.72 391.07 284.76 Equinix EQIX 2.1221 374.28 1.10 -0.35 89.67 66.09 Ryanair RYAAY ... 14 82.97 -0.13
5.34 34.12 28.29 Telus TU 4.4 16 33.55 0.40 2.23 10.20 4.83 Ericsson ERIC 7.7 87 5.96 -0.17
10.69 66.09 29.37 WesternGasPtrs WES 5.3 dd 65.04 -0.27 1.96 109.78 102.29 SBA Comm SBAC ...134 108.47 -0.46
-2.44 27.00 12.00 Ternium TX 3.8 16 23.56 -0.19 -8.75 22.70 17.52 WesternUnion WU 3.5 40 19.82 0.27 s 55.06 23.29 3.55 Exelixis EXEL ... dd 23.12 0.47 2.29 52.54 36.50 SEI Investments SEIC 1.1 26 50.49 0.19
34.41 16.27 7.71 TIM Part TSU 1.8 34 15.86 0.02 5.41 133.55 96.58 Expedia EXPE 0.9 69 119.41 -0.44
10.13 65.02 39.48 WestlakeChem WLK 1.2 20 61.66 -0.99 24.40 80.63 39.13 Sina SINA ... 26 75.62 -0.76
2.74 83.64 70.25 TJX TJX 1.3 23 77.19 0.36 10.73 26.03 20.17 WestpacBanking WBK 5.2 16 26.00 0.11 s 6.68 56.50 43.61 ExpeditorsIntl EXPD 1.4 24 56.50 0.33 23.88 37.48 26.15 SS&C Tech SSNC 0.7 55 35.43 0.08
12.49 32.49 22.75 TaiwanSemi TSM 2.9 18 32.34 0.02 1.72 80.02 64.46 ExpressScripts ESRX ... 13 69.97 0.74
3.72 56.12 27.57 WestRock WRK 3.0 99 52.66 -1.67 7.53 187.48 80.31 SVB Fin SIVB ... 25 184.58 0.17
4.67 61.83 19.57 TargaResources TRGP 6.2 dd 58.69 0.16 11.40 34.00 22.66 Weyerhaeuser WY 3.7 26 33.52 ... -0.95 148.34 91.11 F5Networks FFIV ... 26 143.35 0.11 t-14.63 29.76 21.02 Sabre SABR 2.6 25 21.30 ...
-8.92 84.14 62.94 Target TGT 3.6 12 65.79 0.59 16.06 135.49 102.06 Facebook FB ... 41 133.53 -0.31
-2.52 194.10 139.29 Whirlpool WHR 2.3 15 177.19 0.50 6.54 78.74 54.45 ScrippsNetworks SNI 1.6 13 76.04 -1.06
-2.70 44.79 21.75 TataMotors TTM 0.0 18 33.46 0.41 -0.77 56.82 37.40 WhiteWaveFoods WWAV ... 46 55.17 0.02 7.94 51.56 37.70 Fastenal FAST 2.5 29 50.71 0.10 23.50 48.53 18.42 Seagate STX 5.3 28 47.14 -0.43
6.54 33.76 5.17 TeckRscsB TECK 0.3 12 21.34 0.15 2.11 27.88 14.56 FifthThirdBncp FITB 2.0 14 27.54 -0.06
-9.44 32.69 14.60 Williams WMB 2.8 dd 28.20 0.21 24.12 75.36 28.32 SeattleGenetics SGEN ... dd 65.50 0.20
-5.62 11.79 6.95 TelecomItalia TI 3.1 16 8.39 -0.11 5.26 42.32 17.08 WilliamsPartners WPZ 8.5 dd 40.03 0.15 s 5.36 111.99 92.81 Fiserv FISV ... 27 111.98 0.73 6.28 209.22 150.06 Shire SHPG 0.2119 181.08 2.38
-5.62 9.69 5.61 TelecomItalia A TI/A 4.5 13 6.88 -0.02 14.41 16.63 10.30 Flex FLEX ... 31 16.44 -0.03
-1.65 13.08 9.00 Wipro WIT 0.6 18 9.52 -0.14 6.06 164.23 113.53 SignatureBank SBNY ... 22 159.30 -1.67
11.64 188.79 130.84 Teleflex TFX 0.8 31 179.91 1.86 11.91 36.67 21.21 WooriBank WF 3.6 8 35.81 0.29 24.35 38.33 25.37 Fortinet FTNT ...250 37.45 0.21 11.01 5.00 3.54 SiriusXM SIRI 0.8 35 4.94 0.03
12.63 15.69 8.90 TelefonicaBras VIV ... 24 15.07 -0.09 4.11 35.98 24.69 Gaming&Leisure GLPI 7.8 21 31.88 0.11
33.80 93.35 54.35 Workday WDAY ... dd 88.43 2.93 s 29.05 96.67 57.11 Skyworks SWKS 1.2 20 96.35 3.92
7.28 11.43 8.15 Telefonica TEF 7.3133 9.87 -0.03 11.10 86.72 62.60 Wyndham WYN 2.4 15 84.85 -0.94 4.78 56.19 38.40 Garmin GRMN 4.0 19 50.81 -0.14 25.85 65.75 33.61 Splunk SPLK ... dd 64.37 1.51
-0.75 34.65 23.55 TelekmIndonesia TLK 0.5 16 28.94 0.03 4.72 21.89 13.99 Gentex GNTX 1.7 17 20.62 0.10
14.04 51.35 22.23 XPO Logistics XPO ... dd 49.22 -0.36 2.87 11.37 7.24 Staples SPLS 5.2 dd 9.31 0.04
-5.63 37.21 19.44 Tenaris TS 1.5 dd 33.70 -0.31 3.19 45.42 38.00 XcelEnergy XEL 3.2 19 42.00 0.11 -2.46 103.10 65.38 GileadSciences GILD 3.0 7 69.85 -0.46 3.30 61.64 50.84 Starbucks SBUX 1.7 29 57.35 0.62
s 14.84 29.22 18.07 Teradyne TER 1.0 dd 29.17 0.24 16.84 36.42 24.31 Goodyear GT 1.1 8 36.07 -0.09
29.39 7.50 5.72 Xerox XRX 2.7 14 7.44 0.04 4.44 40.17 16.89 SteelDynamics STLD 1.5 24 37.16 -0.22
-0.93 93.50 68.04 Tesoro TSO 2.5 14 86.64 -0.59 -3.47 54.99 36.42 Xylem XYL 1.5 33 47.80 0.05 8.28 17.51 14.27 Grifols GRFS 2.2 20 17.40 0.02 10.53 128.94 71.52 Stericycle SRCL ... 41 85.15 1.80
16.37 60.00 39.02 TesoroLogistics TLLP 6.2 31 59.13 -0.17 1.74 44.73 25.60 HDSupply HDS ... 9 43.25 0.08
29.03 22.79 15.00 YPF YPF 1.4 dd 21.29 -0.20 20.55 29.35 16.14 Symantec SYMC 1.0 9 28.80 0.33
-2.90 59.34 31.90 TevaPharm TEVA 3.9500 35.20 -0.61 8.01 68.98 49.98 YumBrands YUM 1.8 17 68.40 -0.04 26.62 98.76 71.20 Hasbro HAS 2.3 23 98.50 0.86 19.79 73.08 43.17 Synopsys SNPS ... 37 70.51 -0.15
-0.43 50.93 32.05 Textron TXT 0.2 14 48.35 -0.66 10.81 183.00 146.23 HenrySchein HSIC ... 28 168.11 0.86
1.72 30.37 23.79 YumChina YUMC ... ... 26.57 -0.28 -1.03 47.41 26.37 TD Ameritrade AMTD 1.7 27 43.15 -0.12
12.43 160.68 127.65 ThermoFisherSci TMO 0.4 31 158.64 0.93 16.07 18.45 12.01 ZTO Express ZTO ... 34 14.01 0.02 -0.30 41.24 32.64 Hologic HOLX ... 34 40.00 0.47 s 41.55 192.43 35.50 TESARO TSRO ... dd 190.36 7.80
2.65 45.68 35.56 ThomsonReuters TRI 3.1 8 44.94 0.05 4.09 102.38 74.46 JBHunt JBHT 0.9 26 101.04 0.33
-6.18 35.65 22.72 ZayoGroup ZAYO ... dd 30.83 -0.16 s 11.15 65.41 34.87 T-MobileUS TMUS ... 38 63.92 3.31
10.66 111.81 51.59 ThorIndustries THO 1.2 21 110.72 -0.57 13.25 133.21 92.88 ZimmerBiomet ZBH 0.8 80 116.87 0.55 6.88 14.28 8.04 HuntingtonBcshs HBAN 2.3 21 14.13 -0.04 -5.53 79.00 62.97 TRowePrice TROW 3.2 15 71.10 -0.22
s 2.45 183.60 153.64 3M MMM 2.6 22 182.95 -0.46 16.35 77.46 43.10 IAC/InterActive IAC ... dd 75.38 -0.44
-1.91 56.50 39.35 Zoetis ZTS 0.8 38 52.51 -0.27 21.10 60.20 33.06 TakeTwoSoftware TTWO ...746 59.69 -0.28
s 11.30 86.38 56.98 Tiffany TIF 2.1 24 86.18 3.17 21.28 143.47 70.08 IdexxLab IDXX ... 58 142.23 0.28 27.39 287.39 162.50 Tesla TSLA ... dd 272.23 3.28
-0.05 97.35 63.57 TimeWarner TWX 1.7 20 96.48 0.09 NASDAQ 13.53 40.88 26.99 IHSMarkit INFO ... 81 40.20 0.20
4.76 79.47 51.31 TexasInstruments TXN 2.6 23 76.44 0.19
4.56 77.43 48.70 Torchmark TMK 0.7 17 77.12 -0.30 21.06 124.27 76.22 IPG Photonics IPGP ... 25 119.50 1.03 -4.79 97.25 61.50 TractorSupply TSCO 1.3 22 72.18 1.33
s 8.06 60.51 38.77 Toro TTC 1.2 29 60.46 0.15 7.50 20.43 17.30 AGNC Invt AGNC 11.1 11 19.49 0.03 -6.08 67.27 45.18 IcahnEnterprises IEP ... dd 55.98 -0.41
s 8.41 100.41 81.41 Ansys ANSS ... 34 100.27 -0.16 3.42 32.19 22.44 Trimble TRMB ... 60 31.18 0.32
7.48 53.18 36.21 TorontoDomBk TD 3.1 11 53.03 0.06 27.59 186.88 119.37 Illumina ILMN ... 52 163.37 2.07 1.49 71.69 45.63 TripAdvisor TRIP ... 60 47.06 0.14
-0.82 52.04 42.33 Total TOT 5.1 20 50.55 -0.34 0.23 31.52 20.05 ARRIS Intl ARRS ... dd 30.20 0.34 20.17 125.49 60.30 Incyte INCY ...223 120.49 0.31
13.08 127.44 86.75 ASML ASML 1.0 ... 126.88 -0.39 8.24 31.75 23.33 21stCenturyFoxA FOXA 1.2 19 30.35 -0.16
11.10 56.54 41.27 TotalSystem TSS 0.7 31 54.47 0.52 0.58 38.45 28.38 Intel INTC 2.9 17 36.48 0.07
9.80 31.30 23.88 21stCenturyFoxB FOX 1.2 18 29.92 -0.16
-2.99 123.18 97.80 ToyotaMotor TM ... 10 113.70 0.35 25.53 47.64 28.65 ActivisionBliz ATVI 0.7103 45.33 -0.06 4.58 120.55 94.10 Intuit INTU 1.1 39 119.86 0.62
s 16.24 119.72 79.51 AdobeSystems ADBE ... 52 119.67 0.74 s 14.27 727.36 530.46 IntuitiveSurgical ISRG ... 39 724.66 7.93 278.63 146.77 UltaBeauty ULTA ... 46 275.15 3.06
5.20 49.77 35.06 TransCanada TRP 4.0 dd 47.50 -0.06 3.19
-6.51 71.64 47.80 AkamaiTech AKAM ... 35 62.34 -1.90 8.29 224.07 157.04 UltimateSoftware ULTI ...274 197.47 0.12
0.31 294.38 205.19 TransDigm TDG ... 31 249.74 -2.71 -1.86 57.00 19.59 IonisPharma IONS ... dd 46.94 0.15
5.29 162.00 109.12 AlexionPharm ALXN ... 74 128.82 -1.57 17.24 168.82 97.52 UnitedTherap UTHR ... 11 168.16 -0.26
19.79 37.80 24.20 TransUnion TRU ... 77 37.05 0.03 17.33 30.57 19.51 JD.com JD ... dd 29.85 -0.38
5.86 102.10 61.44 AlignTech ALGN ... 43 101.77 1.34 s 4.22 92.53 79.00 JackHenry JKHY 1.3 28 92.53 32.25 91.58 49.90 VCA WOOF ... 35 90.79 0.02
-0.38 123.09 103.45 Travelers TRV 2.2 12 121.95 0.16 0.29
-1.82 60.74 27.14 Alkermes ALKS ... dd 54.57 -0.98 8.19 91.99 74.01 VeriSign VRSN ... 24 82.30 0.38
18.41 10.87 6.35 TurkcellIletism TKC 21.0 13 8.17 0.45 25.83 160.00 95.80 JazzPharma JAZZ ... 24 137.19 0.78
7.43 3.80 2.03 TurquoiseHill TRQ ... 19 3.47 -0.08 6.83 867.00 672.66 Alphabet A GOOGL ... 30 846.55 4.38 -10.30 23.67 14.76 JetBlue JBLU ... 9 20.11 0.27 4.60 86.00 67.07 VeriskAnalytics VRSK ... 24 84.90 0.63
1.96 25.25 13.72 Twitter TWTR ... dd 16.62 0.27 7.29 841.95 663.28 Alphabet C GOOG ... 30 828.07 3.91 s 12.43 88.47 65.12 KLA Tencor KLAC 2.4 16 88.46 -0.07 19.90 103.73 71.46 VertxPharm VRTX ... dd 88.33 0.63
7.90 175.77 118.16 TylerTech s 12.70 847.27 515.35 Amazon.com AMZN ...172 845.07 0.93 s 10.68 97.77 71.83 KraftHeinz KHC 2.5 42 96.65 22.08 50.81 37.90 Viacom A VIA 1.7 13 47.00 -0.20
TYL ... 67 154.05 0.31 9.37
5.80 77.05 55.72 TysonFoods TSN 1.4 13 65.26 0.36 2.97 61.33 54.12 Amdocs DOX 1.5 22 59.98 0.20 4.21 36.35 24.83 LKQ LKQ ... 21 31.94 -0.04 25.33 46.69 33.94 Viacom B VIAB 1.8 13 43.99 -0.17
1.15 17.44 11.93 UBS Group UBS 3.8 18 15.85 -0.13 3.14 399.16 307.80 Amerco UHAL ... 17 381.21 -2.66 8.67 119.14 68.19 LamResearch LRCX 1.6 21 114.90 0.33 10.91 4.51 3.12 VimpelCom VIP 0.8 10 4.27 -0.03
-2.44 38.61 32.79 UDR UDR 3.3 34 35.59 0.12 0.47 50.64 24.85 AmericanAirlines AAL 0.9 10 46.91 -0.06 16.15 78.57 52.51 LamarAdvertising LAMR 3.9 26 78.10 -0.35 2.78 34.70 24.17 Vodafone VOD 4.0 dd 25.11 -0.11
2.99 48.13 35.80 UGI UGI 2.0 17 47.46 -0.04 18.52 176.85 133.64 Amgen AMGN 2.7 17 173.29 1.18 17.36 87.47 47.43 LibertyBroadbandA LBRDA ... 15 85.04 0.17 6.80 121.55 96.94 WPP WPPGY 2.0 25 118.18 0.30
0.51 27.86 22.19 US Foods USFD ... 29 27.62 0.67 13.58 82.57 50.10 AnalogDevices ADI 2.2 28 82.48 0.51 16.70 88.12 45.85 LibertyBroadbandC LBRDK ... 15 86.44 0.09 3.75 102.82 75.73 WalgreensBoots WBA 1.7 23 85.86 0.21
5.88 24.50 14.89 UltraparPart UGP 2.3 27 21.96 -0.29 17.18 136.27 89.47 Apple AAPL 1.7 16 135.72 0.38 20.14 37.69 26.16 LibertyGlobal A LBTYA ... dd 36.75 0.84 36.23 56.30 14.10 Weibo WB ...149 55.31 0.05
-24.68 47.95 20.44 UnderArmour A UAA ... 49 21.88 0.24 10.54 35.85 18.09 AppliedMaterials AMAT 1.1 18 35.67 0.59 19.80 36.58 25.86 LibertyGlobal C LBTYK ... dd 35.58 0.61 10.24 81.67 34.99 WesternDigital WDC 2.7 dd 74.91 -1.04
-21.53 46.20 17.77 UnderArmour C UA ... 45 19.75 0.12 s 8.96 94.02 65.15 ArchCapital ACGL ... 18 94.02 -0.02 21.72 42.63 19.10 LibertyLiLAC A LILA ... dd 26.73 0.84 0.49 35.58 27.67 WholeFoods WFM 1.8 22 30.91 0.35
s 18.83 49.17 38.41 Unilever UN 2.8 24 48.79 6.47 24.13 35.16 20.51 Atlassian TEAM ... dd 29.89 0.73 25.37 44.95 19.33 LibertyLiLAC C LILAK ... dd 26.54 1.04 4.96 133.40 107.28 WillisTwrsWatson WLTW 1.7 56 128.35 1.95
19.24 48.97 38.58 Unilever UL 2.8 24 48.53 5.96 s 16.74 86.49 47.40 Autodesk ADSK ... dd 86.40 1.26 -3.40 27.25 17.88 LibertyQVC A QVCA ... 10 19.30 0.06 10.87 109.50 75.57 WynnResorts WYNN 2.1 40 95.91 -0.81
5.92 111.38 77.07 UnionPacific UNP 2.2 22 109.82 0.43 -3.02 104.09 83.09 ADP ADP 2.3 27 99.68 -0.20 18.99 45.17 34.26 LibertyVenturesA LVNTA ... 14 43.87 -0.06 -0.51 62.24 41.53 Xilinx XLNX 2.2 26 60.06 0.45
4.23 76.80 37.41 UnitedContinental UAL ... 11 75.96 0.29 s 4.39 62.83 40.21 B/EAerospace BEAV 1.3 20 62.83 0.18 11.43 86.10 53.20 LincolnElectric LECO 1.6 29 85.43 -0.15 16.63 46.72 29.70 Yahoo YHOO ... dd 45.10 -0.06
-6.75 120.44 95.33 UPS B UPS 3.1 28 106.90 -0.32 0.99 85.00 47.76 BOK Fin BOKF 2.1 24 83.86 -0.18 s 4.12 64.93 41.77 LinearTech LLTC 2.0 32 64.92 0.12 22.50 25.00 12.51 Yandex YNDX ... 63 24.66 0.17
19.37 131.19 46.65 UnitedRentals URI ... 19 126.03 -1.83 12.63 201.00 154.79 Baidu BIDU ... 13 185.17 0.23 2.68 81.81 54.00 lululemon LULU ... 32 66.73 0.76 -3.95 39.99 20.05 Zillow A ZG ... dd 35.01 0.22
6.83 55.37 37.48 US Bancorp USB 2.0 17 54.88 -0.13 4.79 56.49 33.51 BankofOzarks OZRK 1.2 22 55.11 -0.43 31.42 194.12 110.07 MarketAxess MKTX 0.7 58 193.08 1.40 -2.96 39.88 19.12 Zillow C Z ... dd 35.39 0.20
20.57 40.45 7.22 US Steel X 0.5 dd 39.80 0.69 1.23 52.71 38.60 BedBath BBBY 1.2 9 41.14 0.26 8.08 91.07 60.87 Marriott MAR 1.3 33 89.36 -0.08 3.74 45.52 20.08 ZionsBancorp ZION 0.7 22 44.65 -0.25
2.31 112.83 87.42 UnitedTech UTX 2.4 18 112.15 0.08 10.62 307.33 205.43 Biogen BIIB ... 17 288.94 -1.19 13.99 15.89 9.05 MarvellTech MRVL 1.5 75 15.81 0.02 NYSE MKT
-1.51 164.97 116.02 UnitedHealth UNH 1.6 21 157.62 -6.03 8.49 102.49 72.96 BioMarinPharm BMRN ... dd 89.87 -0.66 -5.26 34.76 25.17 Mattel MAT 5.8 29 26.10 0.43
15.58 139.77 99.72 UniversalHealthB UHS 0.3 17 122.95 0.82 8.71 8.46 6.23 BlackBerry BBRY ... dd 7.49 0.14 16.96 45.58 32.01 MaximIntProducts MXIM 2.9 26 45.11 0.08 11.23 65.67 52.71 BritishAmTob BTI 4.3 19 62.66 ...
10.43 49.36 26.68 UnumGroup UNM 1.6 12 48.51 -0.59 s 19.03 210.41 125.00 Broadcom AVGO 1.9 dd 210.41 2.23 6.86 20.00 11.90 MelcoCrownEnt MPEL 0.9 74 16.99 0.08 12.74 50.53 28.18 CheniereEnergy LNG ... dd 46.71 -0.13
3.19 11.09 7.59 VEREIT VER 6.3 dd 8.73 -0.02 1.01 34.99 28.82 CA CA 3.2 17 32.09 0.20 27.08 201.16 94.56 MercadoLibre MELI 0.3 71 198.43 0.42 s 12.42 32.40 22.23 CheniereEnerPtrs CQP 5.2 dd 32.40 0.30
-1.26 67.10 48.05 VF VFC 3.2 18 52.68 2.31 s 9.54 81.32 61.22 CBOE Holdings CBOE 1.2 36 80.94 0.54 11.74 76.50 41.53 MicrochipTech MCHP 2.0189 71.68 -0.03 7.55 24.22 13.48 CheniereEnHldgs CQH 0.3301 24.06 0.32
12.10 87.68 69.58 Visa V 0.8 35 87.46 0.05 9.68 65.94 42.11 CDK Global CDK 0.9 37 65.47 0.46 6.52 25.31 9.35 MicronTech MU ... dd 23.35 0.37 -5.87 36.85 29.26 ImperialOil IMO 1.4 13 32.72 -0.08
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MARKETS DIGEST
EQUITIES

Dow Jones Industrial Average S&P 500 Index Nasdaq Composite Index
Last Year ago Last Year ago Last Year ago
20624.05 s 4.28, or 0.02% Trailing P/E ratio * 20.96 16.87 2351.16 s 3.94, or 0.17% Trailing P/E ratio * 24.67 21.82 5838.58 s 23.68, or 0.41% Trailing P/E ratio * 25.35 20.55
High, low, open and close for each P/E estimate * 17.67 15.35 High, low, open and close for each P/E estimate * 18.05 15.75 High, low, open and close for each P/E estimate * 19.85 17.01
trading day of the past three months. Dividend yield 2.37 2.75 trading day of the past three months. Dividend yield 2.02 2.34 trading day of the past three months. Dividend yield 1.15 1.27
All-time high 20624.05, 02/17/17 All-time high: 2351.16, 02/17/17 All-time high: 5838.58, 02/17/17

Current divisor 0.14602128057775 Session high

DOWN UP 21000 2325 5860
t

Session open Close

Close Open
t

20500 2295 5750

Session low
20000 2265 5640

19500 2235 5530

65-day moving average

19000 2205 5420

65-day moving average

18500 2175 5310

Bars measure the point change from session's open 65-day moving average
18000 2145 5200
Nov. Dec. Jan. Feb. Nov. Dec. Jan. Feb. Nov. Dec. Jan. Feb.
* P/E data based on as-reported earnings from Birinyi Associates Inc.

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

Latest 52-Week % chg Most-active and biggest movers among NYSE, NYSE Arca, NYSE MKT Volume, Advancers, Decliners
High Low Close Net chg % chg High Low % chg YTD 3-yr. ann. and Nasdaq issues from 4 p.m. to 6 p.m. ET as reported by electronic NYSE NYSE MKT
Dow Jones trading services, securities dealers and regional exchanges. Minimum Total volume* 944,667,002 18,877,749
Industrial Average 20624.05 20532.61 20624.05 4.28 0.02 20624.05 16391.99 25.8 4.4 8.5 share price of $2 and minimum after-hours volume of 5,000 shares. Adv. volume* 449,355,857 5,591,689
Transportation Avg 9495.57 9408.22 9495.39 20.41 0.22 9554.35 7093.40 30.3 5.0 9.1 Most-active issues in late trading Decl. volume* 463,638,086 10,866,874
Utility Average 672.65 667.48 672.16 1.27 0.19 723.51 618.50 8.7 1.9 9.0 Volume After Hours Issues traded 3,108 343
Company Symbol (000) Last Net chg % chg High Low Advances 1,382 153
Total Stock Market 24446.76 24324.63 24446.75 40.18 0.16 24446.75 19614.05 24.6 5.0 8.1
SPDR S&P 500 SPY 13,615.4 235.09 … unch. 235.13 234.74 Declines 1,587 162
Barron's 400 626.86 623.18 626.86 1.23 0.20 627.37 473.86 32.3 4.2 7.5
Pfizer PFE 5,298.3 33.62 … unch. 33.65 33.47 Unchanged 139 28
Nasdaq Stock Market iShares Russell 2000 ETF IWM 4,960.8 139.11 … unch. 139.23 138.90 New highs 123 5
Nasdaq Composite 5838.58 5800.80 5838.58 23.68 0.41 5838.58 4503.58 29.6 8.5 11.2 iShares MSCI Emg Markets EEM 3,624.9 38.39 … unch. 38.55 38.37 New lows 11 1
Nasdaq 100 5324.72 5291.70 24.08 5324.72 4162.54 9.5 Closing tick 634 59
5324.72 0.45 27.9 13.3 iPath S&P 500 VIX ST Fut VXX 3,574.7 17.68 0.14 0.80 17.73 17.54
Closing Arms† 0.95 1.75
NiSource NI 2,993.6 22.70 … unch. 22.70 22.67
Standard & Poor's Block trades* 7,070 221
Finl Select Sector SPDR XLF 2,768.7 24.51 0.04 0.16 24.52 24.38
500 Index 2351.16 2339.58 2351.16 3.94 0.17 2351.16 1917.78 22.6 5.0 8.5 Nasdaq NYSE Arca
HP HPQ 2,438.8 15.95 … unch. 15.95 15.85
MidCap 400 1734.76 1724.48 1734.76 1.61 0.09 1734.76 1305.68 32.9 4.5 8.8 Total volume*1,859,762,551 242,650,619
SmallCap 600 855.61 851.24 855.10 -1.17 -0.14 857.91 620.28 37.9 2.0 9.7 Percentage gainers… Adv. volume*1,158,145,276 98,208,951
Decl. volume* 631,107,319 140,870,041
Other Indexes Sucampo Pharm Cl A SCMP 23.2 12.40 0.60 5.08 12.60 11.74
Issues traded 2,995 1,323
Russell 2000 1399.86 1392.67 1399.86 0.73 0.05 1404.21 1010.01 38.6 3.1 6.8 CompanhiaSBEDP ADR SBS 10.3 11.25 0.36 3.31 11.25 10.85
Advances 1,564 641
NYSE Composite 11510.92 11455.66 11510.91 6.72 0.06 11514.40 9485.96 21.3 4.1 3.8 SeaDrill SDRL 18.0 2.00 0.06 3.09 2.00 1.90 Declines 1,247 646
Value Line 525.17 522.67 525.17 0.20 0.04 526.94 407.57 28.9 3.8 2.8 Great Panther Silver GPL 10.7 2.24 0.06 2.94 2.24 2.19 Unchanged 184 36
NYSE Arca Biotech 3462.55 3409.04 3462.18 26.37 0.77 3477.87 2776.57 20.6 12.6 9.5
NRG Yield Cl C NYLD 26.5 18.00 0.50 2.86 18.00 17.50 New highs 173 108
New lows 24 6
NYSE Arca Pharma 506.01 503.36 506.01 1.96 0.39 554.66 463.78 3.0 5.1 0.9 ...And losers
Closing tick 526 101
KBW Bank 96.26 95.31 96.26 -0.20 -0.20 96.89 59.84 58.2 4.9 11.8 EP Energy Cl A EPE 17.2 4.65 -0.19 -3.93 4.84 4.60 Closing Arms† 0.68 1.25
PHLX§ Gold/Silver 94.66 92.46 92.56 -1.90 -2.01 112.86 60.53 52.9 17.4 -3.2 Liberty Gl PLC LiLAC A LILA 6.9 26.05 -0.68 -2.55 26.73 26.05 Block trades* 8,727 1,303
PHLX§ Oil Service 176.55 174.52 175.05 -2.06 -1.16 192.66 138.74 23.3 -4.8 -13.7 Unilever ADR UN 322.5 47.76 -1.03 -2.12 48.80 47.76 * Primary market NYSE, NYSE MKT NYSE Arca only.
PHLX§ Semiconductor 976.80 963.01 976.80 5.56 0.57 976.80 604.87 61.3 7.8 20.4 Bunge Ltd BG 25.4 76.32 -1.46 -1.87 77.78 76.32 †(TRIN) A comparison of the number of advancing and declining
CBOE Volatility 12.26 11.37 -0.27 -2.30 25.76 10.58 -44.0 -18.2 issues with the volume of shares rising and falling. An
11.49 -5.4 DSW Cl A DSW 7.1 21.06 -0.40 -1.86 21.46 21.06 Arms of less than 1 indicates buying demand; above 1

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

International Stock Indexes Percentage Gainers... Percentage Losers

Latest YTD
Region/Country Index Close Net chg % chg % chg Latest Session 52-Week Latest Session 52-Week
Company Symbol Close Net chg % chg High Low % chg Company Symbol Close Net chg % chg High Low % chg
World The Global Dow 2654.77 –6.64 –0.25 4.9 MoSys MOSY 3.50 1.23 54.19 9.00 1.82 -39.9 XTL Biopharmaceutical ADR XTLB 2.33 -1.25 -34.92 7.85 2.13 -61.2
The Global Dow Euro 2351.69 3.29 0.14 4.1 LMI Aerospace LMIA 13.66 4.47 48.64 13.71 7.01 50.9 Aoxin Tianli Group ABAC 2.70 -0.55 -16.92 4.07 1.51 10.5
DJ Global Index 343.56 –0.29 –0.08 5.4 iFresh IFMK 23.90 7.16 42.77 24.21 11.88 ... Pingtan Marine Enterprise PME 3.65 -0.68 -15.70 4.55 0.84 170.4
World DJ Global ex U.S. 225.92 –0.81 –0.36 5.6 Atl Alliance Partnership AAPC 25.62 7.62 42.35 36.50 7.60 152.2 Amber Road AMBR 7.97 -1.34 -14.39 12.30 3.99 82.4
Americas DJ Americas 569.44 0.49 0.09 5.4 GSI Technology GSIT 6.99 1.27 22.20 7.06 3.40 102.6 Circor International CIR 61.55 -10.25 -14.28 72.96 34.08 65.4
Brazil Sao Paulo Bovespa 67748.42 –65.82 –0.10 12.5 Arista Networks ANET 119.06 18.89 18.86 119.45 55.00 83.2 Nu Skin Enterprises Cl A NUS 48.23 -6.91 -12.53 66.04 27.74 71.5
Canada S&P/TSX Comp 15838.63 –25.54 –0.16 3.6 DigitalGlobe DGI 35.00 5.40 18.24 35.95 13.32 143.6 Orchid Island Capital ORC 10.84 -1.55 -12.51 12.60 9.00 12.7
Mexico IPC All-Share 47164.71 –129.14 –0.27 3.3 EnviroStar EVI 24.25 3.60 17.43 24.55 3.00 628.2 My Size MYSZ 3.60 -0.51 -12.41 16.70 3.45 ...
Chile Santiago IPSA 3366.74 –10.64 –0.31 4.5 MabVax Therapeutics Hldgs MBVX 3.01 0.44 17.12 6.48 2.51 -17.8 Impinj PI 31.17 -4.19 -11.85 41.91 16.36 ...
0.03 SunPower SPWR 7.89 1.13 16.72 25.29 6.00 -62.7 Function(x) FNCX 1.90 -0.24 -11.21 16.48 1.72 -66.3
Europe Stoxx Europe 600 370.22 0.12 2.4
Euro zone Euro Stoxx 354.95 –0.54 –0.15 1.3 Fate Therapeutics FATE 3.93 0.54 15.93 4.25 1.46 153.5 Yamana Gold AUY 3.09 -0.35 -10.17 5.91 2.46 16.4
Belgium Bel-20 3610.44 –8.83 –0.24 0.1 CymaBay Therapeutics CBAY 3.23 0.44 15.77 3.38 1.02 180.9 Mexco Energy MXC 4.74 -0.51 -9.71 5.61 2.08 87.9
France CAC 40 4867.58 –31.88 –0.65 0.1 RLJ Entertainment RLJE 2.49 0.33 15.45 3.63 1.09 63.0 DineEquity DIN 60.14 -6.41 -9.63 98.82 59.89 -29.7
Germany DAX 11757.02 –0.22 –0.002 2.4 Unilever ADR UN 48.79 6.47 15.29 49.17 38.41 12.4 Monotype Imaging Holdings TYPE 21.40 -2.20 -9.32 25.37 17.31 -8.6
Closed –1.2 Cohu COHU 15.72 2.08 15.25 16.09 10.01 35.2 Gibraltar Industries ROCK 40.30 -4.00 -9.03 48.05 23.59 61.1
Israel Tel Aviv 1452.67 …
Italy FTSE MIB 19006.46 –81.08 –0.42 –1.2
Netherlands AEX 499.08 5.10 1.03 3.3 Most Active Stocks Volume Movers Ranked by change from 65-day average*
Spain IBEX 35 9500.30 –54.40 –0.57 1.6
Volume % chg from Latest Session 52-Week Volume % chg from Latest Session 52-Week
Sweden SX All Share 556.89 –1.86 –0.33 4.2 Company Symbol (000) 65-day avg Close % chg High Low Company Symbol (000) 65-day avg Close % chg High Low
Switzerland Swiss Market 8506.49 38.97 0.46 3.5
Bank of America BAC 84,256 -22.4 24.52 -0.24 24.77 11.65 LMI Aerospace LMIA 2,310 9500 13.66 48.64 13.71 7.01
U.K. FTSE 100 7299.96 22.04 0.30 2.2
SPDR S&P 500 SPY 63,266 -16.7 235.09 0.16 235.16 189.32 National Research Cl A NRCIA 1,034 7265 17.50 1.45 20.00 12.53
Asia-Pacific DJ Asia-Pacific TSM 1526.66 –2.51 –0.16 7.3 Finl Select Sector SPDR XLF 51,376 -27.0 24.47 0.04 24.57 16.61 GSI Technology GSIT 1,566 3732 6.99 22.20 7.06 3.40
Australia S&P/ASX 200 5805.80 –10.50 –0.18 2.5 iShares MSCI Emg Markets EEM 51,256 2.7 38.39 -0.42 38.73 29.67 iShares Comm Optimized Tr CMDT 314 3016 37.00 0.30 39.52 31.46
China Shanghai Composite 3202.08 –27.54 –0.85 3.2 VanEck Vectors Gold Miner GDX 48,905 -31.9 24.79 -1.63 31.79 17.75 Electrum Special Acqn ELEC 471 1993 9.98 0.30 10.09 9.54
Hong Kong Hang Seng 24033.74 –73.96 –0.31 9.2 iPath S&P 500 VIX ST Fut VXX 45,128 27.2 17.54 0.23 107.12 16.76 Unilever ADR UN 42,093 1773 48.79 15.29 49.17 38.41
India S&P BSE Sensex 28468.75 167.48 0.59 6.9 Sprint Corp. S 42,916 138.0 9.30 3.33 9.65 2.87 Unilever ADR UL 36,906 1718 48.53 14.00 48.97 38.58
Japan Nikkei Stock Avg 19234.62 –112.91 –0.58 0.6 Unilever ADR UN 42,093 1773.4 48.79 15.29 49.17 38.41 Build-A-Bear Workshop BBW 2,056 1611 10.00 6.95 15.85 8.05
Singapore Straits Times 3107.65 10.96 0.35 7.9 Advanced Micro Devices AMD 39,316 -30.2 13.13 1.23 14.27 1.83 iSh iBds Mar2020 Cp xFin IBCD 135 1425 24.67 0.08 25.14 24.31
South Korea Kospi 2080.58 –1.26 –0.06 2.7 Direxion Gold Miners Bl 3 NUGT 36,922 -28.8 12.23 -4.75 35.80 5.51 Atkore International ATKR 5,741 1217 25.60 0.35 27.30 14.17
Taiwan Weighted 9759.76 –11.49 –0.12 5.5 * Volumes of 100,000 shares or more are rounded to the nearest thousand * Common stocks priced at $5 a share or more with an average volume over 65 trading days of at least
Sources: SIX Financial Information; WSJ Market Data Group 5,000 shares =Has traded fewer than 65 days

CREDIT MARKETS Currencies CURRENCIES

U.S.-dollar foreign-exchange rates in late New York trading
Consumer Rates and Returns to Investor Benchmark
Treasury Yields
yield curve Forex Race US$vs, US$vs,
andtoRates
Yield maturity of current bills, Yen, euro vs. dollar; dollar vs. Country/currency in US$
Fri YTDchg
per US$ (%) Country/currency in US$
Fri YTDchg
per US$ (%)
U.S. consumer rates Selected rates notes and bonds major U.S. trading partners
Americas Thailand baht .02856 35.010 –2.2
A consumer rate against its Five-year ARM, Rate Vietnam dong .00004401 22720 –0.2
5.00% Argentina peso .0639 15.6540 –1.4
benchmark over the past year 18% Brazil real .3221 3.1049 –4.6 Europe
Bankrate.com avg†: 3.41%
4.00 Canada dollar .7636 1.3096 –2.6 Czech Rep. koruna .03928 25.459 –0.9
5-year adjustable- AmericanAirlinesFederalCreditUnion 2.63% 12
Chile peso .001553 644.10 Denmark krone .1428 7.0023
–3.8 –0.9
rate mortgage 4.00% Ft Worth, TX 800-533-0035 3.00 6 s Colombia peso .0003464 2886.50 –3.8 Euro area euro 1.0615 .9421 –0.9
(ARM)
t Foxboro Federal Savings 2.88% Euro Yen Ecuador US dollar 1 1 unch Hungary forint .003443 290.48 –1.3
3.00 Friday 2.00
s
.0489 20.4345 .009046 110.55
t

Foxboro, MA (877) 369-3331 0 Mexico peso –1.5 Iceland krona –2.1

Peru new sol .3066 3.261 –2.7 Norway krone .1199 8.3427 –3.5
5-year Treasury 2.00 Mount Diablo Lending 2.88% 1.00 –6 s Uruguay peso .03532 28.3100 –3.5 Poland zloty .2449 4.0831 –2.5
note yield
t

Walnut Creek, CA 844-436-5713 One year ago WSJ Dollar index Venezuela b. fuerte .100050 9.9951 unch Russia ruble .01713 58.372 –4.7
t 0.00
1.00 Digital Federal Credit Union 3.00% –12 Asia-Pacific Sweden krona .1122 8.9115 –2.1
1 3 6 1 2 3 5 710 30 2016 2017 Switzerland franc .9972 1.0028 –1.6
Marlborough, MA 800-328-8797 Australian dollar .7664 1.3048 –6.0
0.00 month(s) years Turkey lira .2755 3.6296 3.0
First National Financing 3.00% China yuan .1457 6.8650 –1.1
MAM J J A S ON D J F maturity Ukraine hryvnia .0370 27.0135 –0.3
Hong Kong dollar .1288 7.7614 0.1
2016 2017 Denver, CO 800-910-4439 UK pound 1.2412 .8057 –0.5
India rupee .01491 67.071 –1.3
Sources: Ryan ALM; Tullett Prebon; WSJ Market Data Group Middle East/Africa
Indonesia rupiah .0000749 13345 –1.3
Yield/Rate (%) 52-Week Range (%) 3-yr chg Japan yen .008864 112.82 –3.6 Bahrain dinar 2.6522 .3771 –0.03
Interest rate Last (l)Week ago Low 0 2 4 6 8 High (pct pts)
Kazakhstan tenge .003139 318.58 –4.5 Egypt pound .0625 15.9955 –11.8
Federal-funds rate target 0.50-.75 0.50-.75 0.25 l 0.75 0.50 Corporate Borrowing Rates and Yields Macau pataca .1255 7.9676 0.6 Israel shekel .2700 3.7035 –3.8
Malaysia ringgit .2245 4.4535 –0.7 Kuwait dinar 3.2720 .3056 ...
Prime rate* 3.75 3.75 3.50 l 3.75 0.50 Yield (%) 52-Week Total Return (%)
Bond total return index Close Last Week ago High Low 52-wk 3-yr New Zealand dollar .7184 1.3920 –3.6 Oman sul rial 2.5957 .3853 0.1
Libor, 3-month 1.05 1.04 0.62 l 1.06 0.82 Pakistan rupee .00954 104.800 0.4 Qatar rial .2746 3.641 0.03
Money market, annual yield 0.31 0.31 0.22 l 0.32 -0.10 Treasury, Ryan ALM 1429.563 2.045 2.032 2.186 1.141 –2.241 2.852 Philippines peso .0200 50.112 1.0 Saudi Arabia riyal .2667 3.7502 –0.01
Five-year CD, annual yield 1.24 1.24 1.17 l 1.32 -0.09 10-yr Treasury, Ryan ALM 1694.283 2.425 2.409 2.600 1.366 –0.411 3.083 Singapore dollar .7049 1.4186 –2.0 South Africa rand .0766 13.0529 –4.7
30-year mortgage, fixed† 4.14 4.06 3.43 l 4.29 -0.23 South Korea won .0008693 1150.40 –4.8
DJ Corporate 362.913 3.209 3.224 3.338 2.460 5.147 3.925 Close Net Chg % Chg YTD%Chg
Sri Lanka rupee .0066208 151.04 1.8
15-year mortgage, fixed† 3.32 3.26 2.70 l 3.50 -0.08 Aggregate, Barclays Capital 1885.030 2.620 2.600 2.770 1.820 1.503 2.687 Taiwan dollar .03235 30.915 –4.7 WSJ Dollar Index 91.01 0.23 0.25 –2.08
Jumbo mortgages, $424,100-plus† 4.43 4.36 4.02 l 4.88 -0.06 High Yield 100, Merrill Lynch 2736.647 5.346 5.332 8.069 5.248 18.600 3.410 Sources: Tullett Prebon, WSJ Market Data Group
Five-year adj mortgage (ARM)† 3.41 3.44 2.97 l 4.03 -0.18
Fixed-Rate MBS, Barclays 1943.210 2.910 2.870 3.070 1.930 0.389 2.687
New-car loan, 48-month 3.31 3.16 2.87 l 3.38 0.40
HELOC, $30,000 4.65 4.69 4.29 l 4.84 -0.49
Muni Master, Merrill 502.593 2.157 2.135 2.516 1.297 –0.768 2.979 COMMODITIES
Bankrate.com rates based on survey of over 4,800 online banks. *Base rate posted by 70% of the nation's largest EMBI Global, J.P. Morgan 758.530 5.790 5.744 6.766 5.134 12.446 6.420 Commodities Friday 52-Week YTD
banks.† Excludes closing costs. Pricing trends on someClose
raw materials, or commodities
Sources: SIX Financial Information; WSJ Market Data Group; Bankrate.com Sources: J.P. Morgan; Ryan ALM; S&P Dow Jones Indices; Barclays Capital; Merrill Lynch Net chg % Chg High Low % Chg % chg

DJ Commodity 582.21 -2.72 -0.46 589.81 443.82 31.10 2.64

ONLINE 192.12 -0.33 195.82 20.35 -0.20

WSJ
TR/CC CRB Index -0.64 159.63
Crude oil, $ per barrel 53.40 0.04 0.07 54.06 29.64 80.16 -0.60
Real-time U.S. stock quotes are available on WSJ.com. Track most-active stocks, new highs/lows, mutual funds and ETFs. Natural gas, $/MMBtu 2.834 -0.020 -0.70 3.93 1.64 57.10 -23.90
.COM
Plus, get deeper money-flows data and email delivery of key stock-market data. All are available free at WSJMarkets.com Gold, $ per troy oz. 1237.60 -2.40 -0.19 1364.90 1127.80 0.59 7.62
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
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THE WALL STREET JOURNAL. * * * * Saturday/Sunday, February 18 - 19, 2017 | B7

WEEKEND INVESTOR

Basketball Scion Scores Big in Oil

BY RYAN DEZEMBER lionaire investor Carl Icahn, and an-
LOAN
Continued from page B1
Capital Advisors, a Chicago-
other with the Boston Celtics front of- based investment-advisory
Nate Walton, the 6-foot-7-inch son fice. firm that has been reducing
of basketball great Bill Walton and He returned to California and, on a exposure to online loans for
older brother of Los Angeles Lakers lark, ran for governor in 2003 to re- about a year. Performance is-
coach Luke Walton, was born to star place Gov. Gray Davis, who had been sues “pushed some people to
on the hardwood. recalled. Campaigning in the family the fringes from making an in-
Instead, the former Princeton Uni- uniform of tie-dyed T-shirt, Mr. Walton vestment and made people re-
versity basketball captain is winning in finished 47th out of about 135 candi- examine their thesis,” he said.
high finance. dates, well behind the winner, Arnold LendingClub said in a secu-
A partner in the private-equity Schwarzenegger. rities filing in January that it
group at Ares Management LP, Mr. Mr. Walton enrolled at the Stanford was seeing signs of a stabiliza-
Walton orchestrated one of the most Graduate School of Business that year tion in delinquencies after it
successful shale deals in recent years, and joined Ares in 2006 on the credit raised rates on borrowers. The
expected to net more than $1 billion desk. He was soon noticed by two of Broad Based Consumer Credit
within a year. the firm’s founders, Bennett Rosenthal (Q) Fund has outperformed its
Ares’s shares jumped 11%—the and David Kaplan, who moved him to benchmark by more than 2
stock’s second-biggest one-day gain the private-equity team and assigned percentage points over the
ever—after The Wall Street Journal in him to the oil-and-gas sector. Over two past three years.
January reported its expected profits years, his group studied about 200 oil Colchis’s P2P Income Funds,
from the sale of Texas oil producer companies for investment opportuni- which have $1.3 billion in as-
Clayton Williams Energy Inc., in ties. Ares made only one investment in sets under management,
which Mr. Walton had led Ares to in- a closely held Texas oil company, posted a 2016 return of 6.2%,
vest during the depths of the recent though. according to investor docu-
oil-price slump. When oil prices collapsed in late ments. Colchis’s returns ex-
The sale of Clayton Williams was 2014, distressed opportunities ceeded 9% in each of the pre-
part of a run that has lifted Ares emerged, and Mr. Walton pounced. ceding four years but were
shares 80% over the past year. That is Ares bought Halcón Resources Corp.’s weighed down in 2016 in part

ROBERT H. HOUSTON/ASSOCIATED PRESS

tops among its rivals, including Black-
stone Group LP and KKR & Co.
Nate Walton said Ares’s flexibility to
buy corporate debt, equity or some-
times both has enabled the firm to tai-
lor deals to entice energy executives
into partnerships and boost returns. At
a time when many financiers have
aimed to acquire drilling fields on the
cheap from beleaguered oil producers,
Ares opted to invest directly in such
companies.
“Rather than try to buy assets,
we’re providing capital to companies
that already have assets with real com-
petitive advantages and strong man-
agement teams,” Mr. Walton said in an
interview.
Some Walton family members have
confessed that they don’t fully under-
stand what Nate does for a living, and
his emergence as a financier contrasts
with his father’s hippie demeanor.
Bill Walton wears tie-dyed shirts,
even when announcing basketball
games on ESPN, and he loves the
Grateful Dead. As a star for UCLA and
in the NBA in the 1970s, he became
known for antiestablishment and envi-
ronmental activism that some may find
hard to square with his son’s oil deals.
“I’m a solar guy,” said the elder
Walton, leaving it at that.
Nathan Whitecloud Walton was
Bill Walton, shown playing for UCLA, says of the energy sector: ‘I’m a solar guy.’
born in 1978, the year after his 6-
foot-11-inch father led the Portland
Trail Blazers to their only NBA champi-
onship. The second of four boys who
grew up mostly in Southern California,
Nate was the most scholarly of the
bunch. As a six-year-old, his mother
recalls, he begged for a computer years
before many people knew what a PC
was.
“He was the smartest of all the
brothers, by far,” said Luke Walton,
who won two championships with the
Lakers before becoming the team’s
coach this season. “We had classes to-
gether. I’d get a B- and he’d get like a
98%.”
Nate’s parents, who are divorced,
said their son soaked up the experi-
ences afforded to the child of a star
athlete. There were driveway shoot-
arounds with basketball legend Larry
deeply discounted debt and emerged because of weak debt-collec-
with a 20% stake in the company after tion efforts at LendingClub
the oil explorer exited from bankruptcy and Prosper and a new ac-
protection last year. counting regime introduced
Ares recently launched a firm that earlier in the year, according
helps oil producers pay for drilling to the documents.
projects, and on Friday, the firm said it Colchis declined to com-
would invest in Gastar Exploration ment.
Inc., spreading $425 million over a Meanwhile, P2P Global In-
loan, convertible notes and the strug- vestments, which is managed
gling energy explorer’s stock. Mr. Wal- by a unit of U.K. hedge-
ton is joining Gastar’s board, his sixth fund firm Marshall Wace LLP
Bird and banter with best-selling au- in the industry. and listed on the London Stock
thor David Halberstam over dinner. In the case of Clayton Williams, a Exchange, returned 4.1% in
Susie Walton, his mother, recalled a company with prolific oil fields in West 2016, down from 6.6% the year
teenage Nate hitting it off with his fa- Texas but little cash, Ares made a $350 prior. The fund’s most recent
ther’s friend Timothy Leary and asking million loan last March, not long after quarterly newsletter discussed
if the psychologist known for advocat- oil prices had slumped to about $26 a a tougher environment of
ing psychedelic-drug use could become barrel. Ares also bought shares in the higher funding costs due to
his godfather. company, on the open market and di- volatility in currency markets
Nate Walton was wooed by big-time rectly from Clayton Williams, which and “impairment” in its book
basketball programs but opted instead used the cash to prove its drilling of U.S. consumer loans, which
for the Ivy League. properties were in a sweet spot. accounts for more than half of
At Princeton, Mr. Walton was an un- With energy prices stabilizing at its roughly £850 million ($1.06
dersize center and team captain his se- around $50 a barrel, Noble Energy Inc. billion) of assets.
nior year. The team’s famed offense of agreed in January to buy Clayton Wil- At the end of the year,
constant motion and back-door cuts liams. Under the terms of the deal, the fund’s shares traded at a
flowed through him. “He was an exqui- Ares is due to triple its roughly $515 roughly 20% discount to its
site passer just like his pop,” said Bill million investment. net asset value. Managers said
Carmody, one of Nate’s coaches at Mr. Kaplan said Mr. Walton con- in a recent newsletter that P2P
Princeton. vinced Clayton Williams that Ares Global Investments would
He had a brief spell at a hedge fund could get it through a tough period. likely lessen exposure to U.S.
in New York, where he lived with his “He said, ‘Let’s fix your balance sheet consumer loans and buy back
college buddy, Brett Icahn, son of bil- and go on offense’’’ Mr. Kaplan said. more of its shares.

Futures Contracts | WSJ.com/commodities Global Government Bonds: Mapping Yields

Yields and spreads over or under U.S. Treasurys on benchmark two-year and 10-year government bonds in
Metal & Petroleum Futures Contract Open selected other countries; arrows indicate whether the yield rose(s) or fell (t) in the latest session
Open High hilo Low Settle Chg interest
Contract Open Country/ Yield (%) Spread Under/Over U.S. Treasurys, in basis points
Open High hi lo Low Settle Chg interest Sugar-World (ICE-US)-112,000 lbs.; cents per lb. Coupon (%) Maturity, in years Latest(l) 0 20 40 60 80 100 120 Previous Month ago Year ago Latest Prev Year ago
March 20.39 20.42 20.16 20.30 –.06 90,397
Copper-High (CMX)-25,000 lbs.; $ per lb. May 20.35 20.37 20.13 20.26 –.04 279,422
1.125 U.S. 2 1.203 t l 1.206 1.152 0.746
Feb 2.6850 2.7030 2.6820 2.7055 –0.0105 488 2.250 10 2.425 t l 2.448 2.322 1.823
Sugar-Domestic (ICE-US)-112,000 lbs.; cents per lb.
May 2.7270 2.7520 2.6955 2.7200 –0.0155 123,236
May 30.57 30.75 s 30.50 30.64 –.06 981
Gold (CMX)-100 troy oz.; $ per troy oz. 5.250 Australia 2 1.862 t l 1.867 1.866 1.872 65.9 66.1 112.6
July 30.75 30.75 s 30.74 30.74 –.01 1,916
Feb 1240.70 1241.20 1234.80 1237.60 –2.40 903 4.750 10 2.814 s 2.807 2.707 2.498 35.9 67.6
Cotton (ICE-US)-50,000 lbs.; cents per lb. l 38.9
April 1240.80 1245.10 1235.30 1239.10 –2.50 281,772
March 75.06 75.15 73.02 73.48 –1.53 19,452
June 1244.10 1248.10 1239.00 1242.40 –2.50 72,260
May 76.81 76.93 75.05 75.52 –1.25 159,697
0.000 France 2 -0.504 s l -0.510 -0.592 -0.388 -170.6 -171.6 -113.4
Aug 1245.10 1251.00 1242.50 1245.60 –2.50 20,096
Orange Juice (ICE-US)-15,000 lbs.; cents per lb. 0.250 10 1.042 s l 1.010 0.784 0.649 -138.3 -143.9 -117.3
Dec 1252.10 1257.20 1249.00 1251.70 –2.70 30,074
March 175.45 176.45 173.60 176.25 1.75 5,282
Feb'18 1256.00 1258.30 1252.20 1254.90 –2.80 5,128
May 171.95 172.00 169.95 171.75 1.40 5,265 0.000 Germany 2 -0.814 t l -0.776 -0.736 -0.500 -201.7 -198.2 -124.6
Palladium (NYM) - 50 troy oz.; $ per troy oz.
Feb 784.50 787.00 784.50 779.25 –14.10 1
0.250 10 0.305 t l 0.353 0.324 0.269 -211.9 -209.6 -155.4
March 792.65 794.95 773.35 779.20 –14.10 17,157 Interest Rate Futures 0.300 Italy 2 -0.036 s l -0.053 -0.110 0.081 -126.0 -66.5
-123.8
April 790.60 792.85 779.10 779.85 –14.05 18 Treasury Bonds (CBT)-$100,000; pts 32nds of 100%
June 791.70 796.00 775.00 780.55 –14.00 13,659 1.250 10 2.171 s l 2.138 1.907 1.618 -25.4 -31.0 -20.5
March 150-250 151-310 150-180 151-080 14.0 616,055
Sept 792.35 792.35 782.00 781.60 –14.20 32 149-180 150-230 149-120 150-000 14.0 11,228 0.100 Japan 2 -0.242 t l -0.237 -0.224 -0.146 -144.3 -89.2
June -144.5
Platinum (NYM)-50 troy oz.; $ per troy oz. Treasury Notes (CBT)-$100,000; pts 32nds of 100%
Feb 978.80 979.10 978.80 1003.50 –9.50 23 March 124-140 124-290 124-110 124-225 8.0 3,140,356
0.100 10 0.090 t l 0.095 0.051 0.049 -233.5 -235.4 -177.3
April 1016.50 1019.10 1003.60 1006.00 –9.70 58,470 June 123-280 124-115 123-255 124-050 8.5 233,019 0.250 Spain 2 -0.249 s l -0.284 -0.305 0.061 -149.0 -68.5
-145.2
Silver (CMX)-5,000 troy oz.; $ per troy oz. 5 Yr. Treasury Notes (CBT)-$100,000; pts 32nds of 100%
Feb 18.005 18.050 s 18.005 18.019 –0.044 140 March 117-240 118-010 117-222 117-295 5.5 3,133,432 1.300 10 1.624 s l 1.597 1.398 1.750 -80.1 -85.2 -7.3
May 18.170 18.170 18.035 18.103 –0.043 95,366 June 117-122 117-215 117-105 117-182 6.0 323,321 1.250 U.K. 2 0.086 t l 0.098 0.176 0.373 -111.6 -110.9 -37.3
Crude Oil, Light Sweet (NYM)-1,000 bbls.; $ per bbl. 2 Yr. Treasury Notes (CBT)-$200,000; pts 32nds of 100%
March 53.47 53.52 52.88 53.40 0.04 77,409 March 108-122 108-147 108-117 108-140 1.7 1,466,534 4.250 10 1.302 t l 1.355 1.402 1.482 -112.3 -109.3 -34.1
April 53.87 53.91 53.29 53.78 0.03 457,769 June 108-020 108-047 108-015 108-040 2.0 64,057
54.16 54.23 53.62 54.12 0.05 229,633 Source: Tullett Prebon
May 30 Day Federal Funds (CBT)-$5,000,000; 100 - daily avg.
June
Dec
54.36
54.85
54.48
54.95
53.86
54.36
54.37
54.84
0.04
…
259,257
230,553
Feb 99.345 99.345 99.343 99.342 –.001 102,889 Corporate Debt
April 99.285 99.295 99.285 99.290 .005 410,086
Dec'18 54.56 54.61 t 54.09 54.41 –0.13 115,256 10 Yr. Del. Int. Rate Swaps (CBT)-$100,000; pts 32nds of 100% Price moves by a company’s debt in the credit markets sometimes mirror and sometimes anticipate moves in
NY Harbor ULSD (NYM)-42,000 gal.; $ per gal. March 94.188 94.250 93.875 93.906 .109 32,048 that same company’s share price. Here’s a look at both for two companies in the news.
March 1.6270 1.6379 1.6110 1.6364 .0073 73,087 1 Month Libor (CME)-$3,000,000; pts of 100%
April 1.6390 1.6478 1.6226 1.6466 .0059 93,300 March 99.1850 99.1850 99.1825 99.1775 .0050 20
Investment-grade spreads that tightened the most…
Gasoline-NY RBOB (NYM)-42,000 gal.; $ per gal. April 99.1300 99.1300 99.1300 99.1300 .0075 1,904 Spread*, in basis points Stock Performance
March 1.5230 1.5250 1.4857 1.5166 –.0081 60,459 Eurodollar (CME)-$1,000,000; pts of 100% Issuer Symbol Coupon (%) Maturity Current One-day change Last week Close ($) % chg
April 1.7447 1.7474 1.7150 1.7424 –.0039 109,569 March 98.9000 98.9100 98.8975 98.9075 .0075 1,393,677
Natural Gas (NYM)-10,000 MMBtu.; $ per MMBtu. June 98.7300 98.7400 98.7200 98.7300 .0050 1,511,885 Transcanada Pipelines TRPCN 6.350 May 15, ’67 3821 –203 3874 ... ...
March 2.840 2.899 t 2.830 2.834 –.020 96,284 Sept 98.5950 98.6200 98.5900 98.6000 .0050 1,146,220 Avery Dennison AVY 5.375 April 15, ’20 119 –18 n.a. 79.41 –0.94
April 2.952 2.993 t 2.946 2.951 –.020 225,182 Dec 98.4400 98.4700 98.4350 98.4500 .0100 1,340,918
May 3.023 3.056 t 3.012 3.020 –.022 181,706 Boeing BA 4.875 Feb. 15, ’20 12 –18 n.a. 172.71 1.11
June 3.090 3.114 t 3.072 3.082 –.025 71,562 Currency Futures People's United Financial PBCT 3.650 Dec. 6, ’22 122 –18 n.a. 19.19 –0.47
July 3.152 3.173 t 3.133 3.142 –.028 99,898
Oct 3.186 3.197 t 3.156 3.166 –.030 98,152 Japanese Yen (CME)-¥12,500,000; $ per 100¥ Macy's Retail Holdings M 2.875 Feb. 15, ’23 200 –16 210 … …
March .8833 .8886 .8816 .8860 .0014 194,884 Associated Banc–Corp ASB 2.750 Nov. 15, ’19 111 –13 n.a. 26.20 –0.76
Agriculture Futures June .8868 .8924 .8856 .8899 .0014 9,809
Canadian Dollar (CME)-CAD 100,000; $ per CAD Ford Motor Credit F 3.200 Jan. 15, ’21 83 –13 99 … …
Corn (CBT)-5,000 bu.; cents per bu. March .7653 .7658 .7619 .7633 –.0021 128,756 Hollyfrontier HFC 5.875 April 1, ’26 256 –12 281 29.92 –0.27
March 373.25 373.25 368.00 368.25 –5.25 341,147 June .7660 .7665 .7627 .7640 –.0021 3,153
May 380.50 380.75 375.25 375.50 –5.50 533,371 British Pound (CME)-£62,500; $ per £
Oats (CBT)-5,000 bu.; cents per bu. March 1.2488 1.2515 1.2392 1.2417 –.0084 208,208
…And spreads that widened the most
March 256.00 259.00 251.25 256.75 1.00 2,704 June 1.2520 1.2544 1.2423 1.2447 –.0084 2,080
May 251.75 253.00 247.00 251.25 –.25 4,697
Citigroup C 6.300 May 15, ’49 249 28 251 60.17 –0.35
Swiss Franc (CME)-CHF 125,000; $ per CHF
Soybeans (CBT)-5,000 bu.; cents per bu. March 1.0039 1.0043 .9976 .9978 –.0062 48,120 Kimco Realty KIM 3.125 June 1, ’23 131 19 n.a. 24.33 0.41
March 1043.00 1046.25 1031.00 1032.50 –11.25 164,392 June 1.0088 1.0100 1.0038 1.0038 –.0062 213 Kraft Heinz Foods KHC 5.200 July 15, ’45 194 17 n.a. … …
May 1054.00 1057.25 1042.00 1043.25 –11.50 310,469 Australian Dollar (CME)-AUD 100,000; $ per AUD
Soybean Meal (CBT)-100 tons; $ per ton. Electricite de France EDF 6.000 Jan. 22, ’14 290 16 283 … …
March .7691 .7709 .7652 .7655 –.0035 134,972
March 341.00 342.50 338.10 339.60 –2.40 69,184 June .7675 .7692 .7637 .7639 –.0035 1,620 General Electric GE 5.000 Jan. 21, ’49 66 16 79 30.37 –0.26
May 345.40 346.80 342.60 343.90 –2.30 172,369 Sept .7655 .7666 .7631 .7627 –.0035 691
Soybean Oil (CBT)-60,000 lbs.; cents per lb. Mexican Peso (CME)-MXN 500,000; $ per MXN Royal Bank of Canada RY 1.625 April 15, ’19 65 13 n.a. 75.63 0.23
March 33.63 33.65 t 32.84 32.89 –.63 83,700 March .04892 .04892 .04852 .04878 –.00022 145,779
May 33.91 33.93 t 33.12 33.16 –.65 151,080 June .04820 .04821 .04784 .04808 –.00021 48,176 High-yield issues with the biggest price increases…
Rough Rice (CBT)-2,000 cwt.; $ per cwt. Euro (CME)-€125,000; $ per €
March 931.00 936.50 t 930.00 933.50 –.50 6,830 Bond Price as % of face value Stock Performance
March 1.0679 1.0686 1.0614 1.0615 –.0071 399,410 Issuer Symbol Coupon (%) Maturity Current One-day change Last week Close ($) % chg
May 955.00 961.00 955.00 957.50 –1.50 4,912
June 1.0730 1.0734 1.0664 1.0664 –.0071 11,712
Wheat (CBT)-5,000 bu.; cents per bu.
March 445.50 447.50 440.25 441.00 –6.75 113,609 Parker Drilling PKD 6.750 July 15, ’22 94.375 3.13 87.500 2.35 ...
May 458.75 460.75 455.00 455.50 –5.75 180,382 Index Futures Sprint S 7.625 Feb. 15, ’25 110.750 2.13 107.500 9.30 3.33
Wheat (KC)-5,000 bu.; cents per bu. Mini DJ Industrial Average (CBT)-$5 x index
March 457.50 459.75 454.00 456.25 –1.75 41,514
Rent–A–Center RCII 4.750 May 1, ’21 80.688 1.44 77.125 8.20 –3.07
March 20594 20605 s 20506 20588 –6 126,295
May 470.25 472.75 466.75 469.25 –1.75 89,546 June 20531 20540 s 20446 20527 –4 1,145
Everi Payments GCA 10.000 Jan. 15, ’22 100.625 1.38 98.375 ... ...
Wheat (MPLS)-5,000 bu.; cents per bu. S&P 500 Index (CME)-$250 x index
March 550.75 555.50 546.00 546.25 –4.00 16,870 California Resources CRC 5.000 Jan. 15, ’20 84.750 1.13 83.000 17.67 0.17
March 2345.00 2349.00 s 2336.60 2347.90 2.30 71,826
May 556.75 561.50 554.25 554.50 –1.50 33,341 BruceMansfieldUnit12007PassThroughTrust FE 6.850 June 1, ’34 32.500 0.75 35.500 … …
June 2344.00 s 2332.00 2343.40 2.40 1,401
Cattle-Feeder (CME)-50,000 lbs.; cents per lb. Rain Cii Carbon RCOLIN 8.250 Jan. 15, ’21 103.250 0.75 101.750 ... ...
March 123.725 124.550 123.400 124.075 .250 15,889 Mini S&P 500 (CME)-$50 x index
April 123.725 124.550 123.425 124.200 .450 13,760 March 2345.00 2348.75 s 2336.50 2348.00 2.50 2,986,733 NRG Energy NRG 6.625 March 15, ’23 101.500 0.69 101.250 17.10 –0.06
Cattle-Live (CME)-40,000 lbs.; cents per lb. June 2339.50 2344.25 s 2332.00 2343.00 2.50 82,589
Feb 116.750 118.000 116.550 117.925 1.400 9,262 Mini S&P Midcap 400 (CME)-$100 x index …And with the biggest price decreases
April 113.250 115.100 113.125 114.925 1.675 132,355 March 1730.50 1734.40 1721.00 1733.30 1.40 96,215
Hogs-Lean (CME)-40,000 lbs.; cents per lb. June 1721.90 1730.30 1721.90 1730.80 1.40 23 Global A&T Electronics GATSP 10.000 Feb. 1, ’19 65.500 –7.00 n.a. ... ...
April 69.825 71.125 69.825 70.775 .950 100,564 Mini Nasdaq 100 (CME)-$20 x index Caesars Entertainment Operating CZR 12.750 April 15, ’18 73.500 –2.25 n.a. … …
June 78.300 79.500 78.300 79.275 .975 52,199 March 5300.3 5327.0 5286.8 5325.8 25.3 225,348
Lumber (CME)-110,000 bd. ft., $ per 1,000 bd. ft. June 5297.5 5326.0 5287.0 5325.3 24.8 1,321 Hornbeck Offshore Services HOS 5.875 April 1, ’20 70.000 –2.25 75.500 4.66 –1.89
March 361.70 364.30 360.90 363.30 2.00 2,204 Mini Russell 2000 (ICE-US)-$100 x index First Quantum Minerals FM 7.000 Feb. 15, ’21 102.500 –1.88 103.500 … …
May 367.90 371.80 367.90 371.10 3.20 2,329 March 1397.10 1399.70 1385.50 1397.60 –1.40 609,662
Milk (CME)-200,000 lbs., cents per lb. Murray Energy MURREN 11.250 April 15, ’21 82.000 –1.75 75.250 ... ...
June 1395.70 1396.40 1387.10 1396.30 –1.20 568
Feb 16.88 16.90 16.88 16.88 –.02 4,141
Mini Russell 1000 (ICE-US)-$100 x index CenturyLink CTL 5.625 April 1, ’20 104.198 –1.61 106.000 24.28 ...
March 16.87 16.96 16.81 16.87 –.06 4,575
March 1298.70 1303.60 1297.80 1303.60 2.60 7,798 Teck Resources TCKBCN 6.000 Aug. 15, ’40 99.750 –1.50 100.750 ... ...
Cocoa (ICE-US)-10 metric tons; $ per ton.
2,090 2,090 2,028 2,034 –38 93 U.S. Dollar Index (ICE-US)-$1,000 x index
March
March 100.50 100.96 100.44 100.95 .52 71,056
California Resources CRC 8.000 Dec. 15, ’22 87.750 –1.44 89.063 17.67 0.17
May 2,047 2,060 1,988 2,000 –42 134,243
Coffee (ICE-US)-37,500 lbs.; cents per lb. June 100.45 100.87 100.39 100.87 .51 2,889 *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.
March 146.70 148.70 145.20 147.80 1.50 1,099 Note: Data are for the most active issue of bonds with maturities of two years or more
May 148.30 150.35 147.20 149.55 1.15 97,701 Source: SIX Financial Information Sources: MarketAxess Corporate BondTicker; WSJ Market Data Group
B8 | Saturday/Sunday, February 18 - 19, 2017 * *** THE WALL STREET JOURNAL.

COMMODITIES WSJ.com/commodities NEW HIGHS AND LOWS | WSJ.com/newhighs

52-Wk % 52-Wk %

Cash Prices | WSJ.com/commodities

The following explanations apply to the New York Stock Exchange, NYSE Arca, NYSE Stock Sym Hi/Lo Chg Stock Sym Hi/Lo Chg
Friday, February 17, 2017 MKT and Nasdaq Stock Market stocks that hit a new 52-week intraday high or low in
AdobeSystems ADBE 119.72 0.6 Medicines MDCO 53.92 1.1
the latest session. % CHG-Daily percentage change from the previous trading session.
Amazon.com AMZN 847.27 0.1 MercurySystems MRCY 37.63 -0.1
These prices reflect buying and selling of a variety of actual or “physical” commodities in the marketplace— Friday, February 17, 2017
AmerisBancorp ABCB 49.00 0.4 MiddlefieldBanc MBCN 42.00 3.6
ApolloInv AINV 6.28 0.8 Nanometrics NANO 27.33 1.5
separate from the futures price on an exchange, which reflects what the commodity might be worth in future 52-Wk % 52-Wk % 52-Wk % AppliedOptoelec AAOI 37.73 4.1 NatlInstruments NATI 32.19 0.5
Stock Sym Hi/Lo Chg Stock Sym Hi/Lo Chg Stock Sym Hi/Lo Chg AQMS 18.39 -2.3 NetScout NTCT 38.40 0.7
months. AquaMetals
ArchCapital ACGL 94.02 ... NicoletBankshares NCBS 49.18 0.8
RenaissanceRe RNR 146.40 -0.1 iShEdgeMSCIUSAQual QUAL 72.55 0.4
AscendisPharma ASND 29.69 2.8 NovaMeasuring NVMI 17.04 1.4
Friday Friday Friday NYSE highs - 123 RepublicServices RSG
ResMed RMD
60.79
72.35
2.9
0.5
iShEdgeMSCIUSASize SIZE
iShMSCINetherlands EWN
75.36
25.79
0.4
1.5
AspenTech AZPN 57.19 0.2 NuvNasd100Dyn QQQX 20.87 0.6
Energy Handy & Harman base 1241.95 Other metals AdvanSix ASIX 29.34 2.7 ResourceCapPfdC RSOpC 24.17 0.1 iShMSCIWorldETF URTH 76.99 -0.1
AtlanticCoastFin ACFC 7.85 -1.0 NxstageMed NXTM 29.99 -0.5
Allegion ALLE 73.68 0.5 Autodesk ADSK 86.49 1.5 Oclaro OCLR 11.09 2.3
Handy & Harman fabricated 1378.56 LBMA Platinum Price PM *1013.0 72.98 0.4
S&P Global SPGI 130.42 1.4 iShMorningstarLC JKD 140.19 0.2
BCB Bancorp BCBP 14.60 2.5 OldLineBcshs OLBK 29.06 0.3
Altria MO ShinhanFin SHG 41.43 0.1 iShMorningstarMC JKG 166.86 0.2
Propane,tet,Mont Belvieu-g 0.7330 LBMA Gold Price AM *1236.75 Platinum,Engelhard industrial 1012.0 Ametek AME 54.50 0.2 SouthwestGas SWX 83.92 -0.4 iShMornMCGrowth JKH 173.27 0.4
B/EAerospace BEAV 62.83 0.3 PRA HealthSci PRAH 61.45 0.4
Amphenol APH 69.46 0.1 BlackLine BL 29.50 3.6 PeoplesBncpNC PEBK 27.55 1.2
Butane,normal,Mont Belvieu-g 1.0957 LBMA Gold Price PM *1240.55 Platinum,Engelhard fabricated 1112.0 SterlingBancorp STL 25.20 0.2 iShRussell1000Gwth IWF 112.23 0.2
BldrsDev100 ADRD 20.91 0.3 PingtanMarineEnt PME 4.55 -15.7
AnadarkoPeteUn AEUA 46.52 0.2 StonegateMtg SGM 7.87 0.5 iShRussellTop200Gr IWY 60.42 0.2
NaturalGas,HenryHub-i 2.750 Blucora BCOR 16.15 3.9 PlumasBancorp PLBC 19.50 3.4
Krugerrand,wholesale-e 1287.68 Palladium,Engelhard industrial 797.0 AristaNetworks ANET 119.45 18.9 TPGSpecLending TSLX 19.40 0.6 iShRussellTop200 IWL 53.64 -0.1
BluStrTABIGIIsrael ITEQ 27.15 0.4 Pool POOL 116.90 1.9
AssocCapital AC 37.95 0.3 TeledyneTech TDY 134.00 0.9 iShS&P100 OEF 104.31 0.1
NaturalGas,TranscoZone3-i 2.660 Maple Leaf-e 1300.06 Palladium,Engelhard fabricated 897.0 Bard CR BCR 242.68 0.3 TemplIncoFd TEI 11.71 -0.8
Bojangles' BOJA 21.00 ... PwrShBuybackAch PKW 52.57 0.3
iShS&PMC400Growth IJK 191.91 0.2 PSDWAMomentum PDP 44.89 0.3
BarnesGroup B 50.25 4.1 Broadcom AVGO 210.41 1.1
NaturalGas,TranscoZone6NY-i 2.490 American Eagle-e 1300.06 Aluminum, LME, $ per metric ton *1878.0 Teradyne TER 29.22 0.8 iShS&P500Growth IVW 129.67 0.2
CBOE Holdings CBOE 81.32 0.7 PwrShDivAch PFM 23.67 0.3
BerkHathwy B BRK/B 168.70 0.5 Textainer TGH 17.60 ... iShNATech-Mult IGN 47.26 1.1
NaturalGas,PanhandleEast-i 2.470 2.7055 PwrShQQQ 1 QQQ 129.82 0.4
Mexican peso-e 1500.84 Copper,Comex spot BerkHathwy A BRK/A 252860 0.5 3M MMM 183.60 -0.3 iShNATech-Software IGV 123.40 0.5
CDW CDW 60.00 2.0
PwrShS&P ScHealth PSCH 78.29 0.7
BlueCapReins BCRH 20.65 0.5 Tiffany TIF 86.38 3.8 CF Wt CFCOW 1.60 12.5
2.460 90.3 JPMorganDivRetUS JPUS 62.25 0.1
NaturalGas,Opal-i Austria crown-e 1216.63 Iron Ore, 62% Fe CFR China-s Boeing BA 173.25 1.1 TimkenSteel TMST 20.15 12.2 CH Robinson CHRW 79.09 1.3 PreferredBankLA PFBC 57.60 0.6
OppenheimerGlbGwth RGRO 50.42 0.4 PrincplMillennials GENY 26.22 0.4
282 CU Bancorp CUNB 39.35 0.5
NaturalGas,MarcellusNE PA-i 2.190 Austria phil-e 1300.06 Shredded Scrap, US Midwest-s,w BorgWarner BWA 42.38 2.4 Toro TTC 60.51 0.2 PIMCOEnhShMaturity MINT 101.54 ...
69.89 -0.4 PrincipalShrhldrYd PY 29.05 0.8
BrookfieldMgt BAM 37.41 0.6 TrancntlRlty TCI 21.00 5.5 CabotMicro CCMP
PwrShAerospace PPA 43.83 0.2
NaturalGas,HaynesvilleN.LA-i 2.620 Silver, troy oz. Steel, HRC USA, FOB Midwest Mill-s 625 Bunge BG 77.82 3.2 TrinityIndustries TRN 30.13 2.1 PwrShDynLCValue PWV 35.48 0.2
CadenceDesign CDNS 30.20 -0.1 PrivateBancorp PVTB 57.59 -0.6
CAI Intl CAI 17.50 8.1 CalitheraBiosci CALA 9.80 2.8 ProgenicsPharm PGNX 10.84 0.8
TritonIntl TRTN 27.53 0.8
Coal,C.Aplc.,12500Btu,1.2SO2-r,w 50.050 Engelhard industrial 18.0200 Fibers and Textiles CBRE Group CBG 35.78 1.9
PwrshsDynNetw PXQ 43.68 1.5
CardiovascularSys CSII 29.54 2.7 PrShrUltPrQQQ TQQQ 83.10 1.3
US PhysTherapy USPH 75.30 -1.4 PwrshsDynSftw PSJ 51.12 0.1
CarolinaBankNC CLBH 28.80 0.5 ProspectCapital PSEC 9.46 ...
Coal,PwdrRvrBsn,8800Btu,0.8SO2-r,w 11.800 Engelhard fabricated 21.6240 CapitalOne COF 92.04 1.4 Unilever UN 49.17 15.3 PwrShsLgCpGro PWB 33.86 0.5 PulseBiosciences PLSE 15.00 12.2
CapitalOneWt COF/WS 49.98 2.8 CarolinaTrBcshs CART 8.87 0.6
Burlap,10-oz,40-inch NY yd-n,w 0.5825 VailResorts MTN 180.00 0.1 PSRussMCPureGrwth PXMG 33.73 1.0 QCR Holdings QCRH 44.90 1.9
Metals Handy & Harman base 18.0600 Chemours CC 33.39 3.6 Valspar VAL 111.46 -0.1 PSRussTop200PureG PXLG 36.33 0.3
CathayGenBncp CATY 39.43 1.0
Cotton,1 1/16 std lw-mdMphs-u 0.7302 ChimeraInvt CIM 18.75 -0.1 CentralGarden CENT 36.00 2.5 QuinparioAcqn2Un QPACU 10.45 0.2
VersumMaterials VSM 31.09 3.8 PSRuss2000PureGrw PXSG 27.01 0.6
Handy & Harman fabricated 22.5750 Chubb CB 136.25 0.3 VMware VMW 91.60 0.3 CentralGardenA CENTA 34.30 2.7 Radware RDWR 16.53 -0.5
Gold, per troy oz Cotlook 'A' Index-t *85.80 PwrShS&P500xRate XRLV 29.24 0.3
CentrueFin CFCB 26.10 0.4 RavenIndustries RAVN 29.95 6.8
LBMA spot price £14.5014 EngGr-Cmg C CIG/C 3.87 -3.4 VornadoRealty VNO 110.17 -0.2 PwrShS&P500Qual SPHQ 27.16 0.1 RealPage RP 34.55 1.5
Hides,hvy native steers piece fob-u 75.000 Cooper COO 196.03 2.8 Walker&Dunlop WD 40.10 1.1 S&P400LowVol XMLV 42.23 0.1
CharterFin CHFN 19.50 2.6
Engelhard industrial 1244.26 (U.S.$ equivalent) 18.0050 Cooper-Standard CPS 115.37 4.9 WasteConnections WCN 83.70 1.0 CitrixSystems CTXS 80.77 0.7 RushEnt A RUSHA 34.93 2.4
ProShrsS&P500xTech SPXT 46.69 0.1
Wool,64s,staple,Terr del-u,w n.a. CooperT&R CTB 41.90 7.7 72.47 1.8 Cognex CGNX 77.94 8.5 SB Financial PfA SBFGP 18.00 2.5
Engelhard fabricated 1337.58 Coins,wholesale $1,000 face-a 14004 WasteMgt WM ProShrUltraQQQ QLD 103.02 0.9
Cohu COHU 16.09 15.2 SLM PfdA SLMAP 54.77 0.9
Cubic CUB 52.50 0.9 WebsterFin WBS 55.94 0.4 ProShrUlTech ROM 116.96 0.6
Grains and Feeds DigitalGlobe DGI 35.95 18.2 XL Group XL 40.96 0.8 PureFdsISEBigData BIGD 25.26 0.4
ColliersIntl CIGI 46.40 2.8 SandySpringBncp SASR 43.33 0.2
CommerceBcshrs CBSH 59.31 0.7 Semtech SMTC 35.15 -0.1
Domino's DPZ 187.99 1.0 Zhaopin ZPIN 17.17 6.1 PureFundsISECyber HACK 29.61 1.2
COMM 39.69 0.3 ServisFirstBcshs SFBS 42.45 -1.0
Barley,top-quality Mnpls-u n.a. Energizer ENR 54.16 0.5 PureFISEMobilePymt IPAY 27.49 0.5
CommScope
SierraWireless SWIR 28.60 6.0
A Week in the Life of the DJIA Bran,wheat middlings, KC-u 79
Fabrinet FN
FidelityNtlInfo FIS
48.50
82.05
0.8
0.4
NYSE lows - 11 RivFrDynUSDiv RFDA 27.99 0.1
Costco
CymaBayTherap CBAY
COST 176.50
3.38
0.1
15.8 SigmaLabsWt SGLBW 1.25 25.0
SPDRMSCIUSAStrat QUS 67.75 ... SinclairBroadcast SBGI 36.60 0.6
FGB 8.18 2.6 AmiraNatureFoods ANFI 5.50 -0.9 Datawatch DWCH 8.40 5.1
Corn,No. 2 yellow,Cent IL-bp,u 3.4950 FT SpecFin
DDR DDR 14.29 ...
SPDRMSTech MTK 67.21 0.9
ESSA Bancorp ESSA 16.91 0.9 Skyworks SWKS 96.67 4.2
A look at how the Dow Jones Industrial Average component stocks Corn gluten feed,Midwest-u,w 92.8
FT StrHiIncm FHY
GOLLinhas GOL
12.80
28.77
1.2
8.9 DineEquity DIN 59.89 -9.6
SPDRMomentumTilt MMTM 98.80 0.5
EastVABkshs EVBS 10.82 1.5 SolarCapital SLRC 22.19 0.6
SPDR S&P500MidGr MDYG 139.95 0.1 SolarSeniorCap SUNS 17.34 0.5
Keane FRAC 19.35 -4.5 ElectrumSpecUn ELECU 11.72 2.6
did in the past week and how much each moved the index. The DJIA Corn gluten meal,Midwest-u,w 520.1 Gallagher
GeneralDynamics GD
AJG 56.94
189.10
0.8
0.2 L Brands LB 56.01 0.1 SPDRS&P500Growth SPYG 112.10 0.2
ElectrumSpec ELEC 10.09 0.3 SunshineBancorp SBCP 19.05 1.1
NuvMuni2021 NHA 9.65 ... SPDR Aero & Dfns XAR 68.09 0.4 TCP Capital TCPC 17.29 0.1
gained 354.68 points, or 1.75%, on the week. A $1 change in the price Cottonseed meal-u,w 225 GraniteREIT GRP/U 35.35 1.7 SPDRS&P500Fossil SPYX 56.75 0.3 EncoreWire WIRE 48.45 9.4
TESARO TSRO 192.43 4.3
HRG Group HRG 17.93 0.6 PioneerMuniHiInAdv MAV 10.90 -0.3 Entegris ENTG 22.00 0.9
Hominy feed,Cent IL-u,w 80 SteelPtrsPfdA SPLPpA 22.28 -1.1 SPDRS&PHlthCareEqp XHE 54.70 1.1 T-Mobile Pfd TMUSP 106.98 5.3
of any DJIA stock = 6.85-point change in the average. To date, a HalyardHealth HYH 40.99 1.0
TaubmanCtrs TCO 66.96 -0.7 SPDRS&P1000ETF SMD 93.57 ... ErieIndemnity A ERIE
EsperionTherap ESPR
118.24
25.93
-1.6
7.8 T-MobileUS TMUS 65.41 5.5
Meat-bonemeal,50% pro Mnpls-u,w 288 Harris HRS 109.47 0.7
Triple-S Mgmt GTS 18.06 -0.1 SPDRS&PSft&Svs XSW 58.50 0.1 TechTarget TTGT 9.43 1.2
$1,000 investment on Dec. 31 in each current DJIA stock component Oats,No.2 milling,Mnpls-u 3.0075
Heico A HEI/A 70.40 1.1
WildHorseResource WRD 13.41 -0.7 SPDRS&PTelecom XTL 73.52 1.0 Exelixis EXEL 23.29 2.1
TradeDesk TTD 35.36 -2.8
HerculesCapital HTGC 15.24 0.4 SPDR US LC Low Vol LGLV 84.57 0.2 ExpeditorsIntl EXPD 56.50 0.6
TriStateCapital TSC 24.00 0.4
would have returned $31,379, or a gain of 4.60%, on the $30,000 Rice, 5% Broken White, Thailand-l,w 348.00 Hi-Crush HCLP 21.50 1.4 FateTherap FATE 4.25 15.9
Hill-Rom HRC 64.36 1.6 NYSE Arca highs - 108 SchwabUSLgCpValue SCHV
SPDR S&P Div SDY
49.84
88.27
0.1
0.3 FirstBancorpNC FBNC 31.00 ... trivago
TrueCar
TRVG
TRUE
14.17 2.1
15.26 8.5
investment, including reinvested dividends. Rice, Long Grain Milled, No. 2 AR-u,w 20.63 HomeDepot HD 143.12 1.0 AdvShPeritusHY HYLD 36.63 0.3 SPDR S&P Semi XSD 60.80 1.0 FirstBank FRBA 14.80 4.0
TwoRiverBancorp TRCB 16.75 1.9
Honeywell HON 124.56 0.3 FirstCommFinl FCFP 13.30 1.5
Sorghum,(Milo) No.2 Gulf-u 7.1125 HuntingtonIngalls HII 213.65 0.9
BarclaysETN FI Enh FLEU 114.87 0.3 TechSelectSector XLK 52.19 0.3
FirstSavingsFin FSFG 50.00 1.1
Ultratech UTEK 28.95 -0.3
The Week’s Action BarcETN+FIEnhGlHY FIGY 138.76 0.3 VanEckGlblSpinoff SPUN 22.39 0.1 UtdCmntyBcp UCBA 17.40 0.7
Pct Stock price Point chg $1,000 Invested(year-end '16) SoybeanMeal,Cent IL,rail,ton48%-u 336.60 IllinoisToolWks ITW 130.36 ... S&PVEQTOR VQT 142.15 0.2 VanEckIsrael ISRA 28.90 0.5 FT CapStrength FTCS 43.23 0.3
VangdRuss1000Grw VONG 115.12 0.3
IntlSeaways INSW 18.59 1.1 BarclaysETNShiller CAPE 102.18 0.1 VanEckMornWideMoat MOAT 37.59 0.5 FT NasdCybersec CIBR 21.63 0.8
chg (%) change in average Company Symbol Close $1,000 Soybeans,No.1 yllw IL-bp,u 10.0100 KeysightTechs KEYS 38.48 -0.8 FT Nasd100Tech QTEC 58.50 0.3
VarexImaging VREX 33.27 5.1
ColumbiaSustGlb ESGW 28.10 0.4 VanEckSemiconduc SMH 77.09 0.4 Veracyte VCYT 8.48 3.5
7.08 2.23 15.27 Cisco Systems CSCO $33.74 $1,126 Wheat,Spring14%-pro Mnpls-u 6.3450 Knowles KN 19.68 0.7 ColumbiaSustUSEqu ESGS 28.86 1.3 VangdInfoTech VGT 132.87 0.3 FT Nasd100 EW QQEW 50.71 0.5
VicShUSEQIncmEnh CDC 42.40 ...
L3 Tech LLL 168.72 -0.2 DeutscheXACAPxJ DBAP 24.55 0.9 VangdDivApp VIG 89.77 0.4 FT RisingDivAch RDVY 26.57 0.1
Wheat,No.2 soft red,St.Louis-bp,u 4.4100 VicShUSLCHiDivVol CDL 41.29 ...
FT TCW Opp FIXD 50.27 0.1
3.93 1.27 8.70 Pfizer PFE 33.62 1,045 LeggMason LM 36.78 2.0 DeutscheXUSDHiYd HYLB 51.05 0.1 VangdGrowth VUG 119.86 0.4
FirstService FSV 57.22 0.2
VirtusInvtPfdD VRTSP 101.83 0.3
Wheat - Hard - KC (USDA) $ per bu-u 4.0625 LeucadiaNatl LUK 25.58 0.9 DirexTechBull3 TECL 62.42 0.7 VanguardHiDiv VYM 77.80 0.1 WaferGenBioSys WGBS 6.90 2.1
3.90 6.48 44.38 Boeing BA 172.71 1,120 LiveNationEnt LYV 29.71 1.4 ElemntsRogrMrngstr WMW 26.74 -0.2 VangdMegaGrwth MGK 93.96 0.3 Fiserv FISV 111.99 0.7
WintrustFin Wt WTFCW 52.85 8.5
Wheat,No.1soft white,Portld,OR-u 4.8050 MarineMax HZO 22.85 5.6 FidelityLowVol FDLO 26.87 0.1 WBITacticalLCG WBIE 23.34 0.2 Five9 FIVN 17.20 -1.7
WisdTrChinaxSOE CXSE 55.33 1.2
3.71 3.23 22.12 J.P. Morgan Chase JPM 90.23 1,052 Marsh&McLennan MMC 73.52 0.4 FidelityMSCIIT FTEC 40.32 0.3 WBITacticalLCS WBIL 24.29 0.1 FulingGlobal FORK 3.45 1.5
WrightMedical WMGI 27.09 0.6
Food Medifast MED 45.28 0.8 FT MngstrDiv FDL 28.77 0.2 WisdTrEuropeHdg HEDJ 59.47 0.3 GRAVITY GRVY 26.50 6.1
ZELTIQAesthetics ZLTQ 56.67 ...
3.55 3.12 21.37 Procter & Gamble PG 91.09 1,092 MettlerToledo MTD 471.55 1.1 FT TechAlphaDEX FXL 41.27 0.9 WisdTrIntlHdgQual IHDG 27.68 0.8 GSI Tech GSIT 7.06 22.2
Zix ZIXI 5.15 2.8
Moody's MCO 112.98 2.4 FT USEquityOpp FPX 57.61 1.3 WisdTrJapanSC DFJ 66.45 0.2 GlbBloodTherap GBT 28.00 7.8
Beef,carcass equiv. index GlobalXRobotics&AI BOTZ 16.70 0.6
3.23 1.14 7.81 Intel INTC 36.48 1,013 choice 1-3,600-900 lbs.-u 176.36
MorganStanleyPfdK MSpK 25.70
NatlPrestoInds NPK 111.40
...
0.5
FT ValDivFd FVD
FlexQltyDefensive QDEF
28.95
39.97
0.3
0.1 NYSE Arca lows - 6 GrandCanyonEduc LOPE 67.18 6.7 Nasdaq lows - 24
NatlStorage NSA 23.71 2.1 FranklinLibQGlbDiv FLQD 27.25 1.3 HennessyCapWt HCACW 1.06 -1.0 AlliquaBioMed ALQA 0.48 -4.6
3.16 7.66 52.46 Goldman Sachs GS 250.38 1,046 select 1-3,600-900 lbs.-u 173.67 Natuzzi NTZ 2.54 14.9 GlblXGuruIndexETF GURU 25.70 0.4 DirexSemiBear3 SOXS 8.45 -1.6 HostessBrands TWNK 15.62 2.0 ArQule ARQL 1.13 -18.4
3.14 3.62 24.79 Johnson & Johnson JNJ 118.86 1,032 Broilers,dressed 'A'-u n.a. Neff NEFF 16.90 0.6 GlbXSciBetaUS SCIU 27.66 0.2 DirexTechBear3 TECS 13.94 -0.9 HowardBancorp HBMD 18.80 2.2 AxsomeTherap AXSM 4.10 -2.9
NewMountainFin NMFC 14.88 ... GSActiveBetaUSLC GSLC 46.70 0.2 ProShShortQQQ PSQ 43.15 -0.4 Icon ICLR 88.90 -2.4 Baldwin&Lyons B BWINB 22.60 ...
Broilers, National comp wghtd-u,w 0.8567 NobleMidstream NBLX 49.90 -0.8 PrShrsUShrQQQ QID 19.92 -0.8 Identiv INVE 5.90 -3.9 COYN 0.39 -4.7
2.72 3.60 24.65 Apple AAPL 135.72 1,178 OSB 29.61 -0.7
GuggBull2023HY BSJN 26.79 0.2
ProShrUSSemi SSG 19.39 -0.7 iFresh IFMK 24.21 42.8
COPsync
Butter,AA Chicago 2.1575 Norbord GuggDefEqty DEF 40.82 0.3 GTx GTXI 4.65 -0.2
NuvSrIncmFd NSL 7.05 0.3 ProShrUSTech REW 26.81 -0.6 Inogen INGN 69.43 0.8
2.64 2.54 17.39 Caterpillar CAT 98.85 1,075 Cheddar cheese,bbl,Chicago 162.00 OGE Energy OGE 34.76 ...
GuggDJIA Div DJD 30.06 -1.0
IntuitiveSurgical ISRG 727.36 0.4
GulfportEnergy GPOR 19.44 -1.2
GuggS&P500EWIndl RGI 105.90 0.2 IcahnEntRt IEPRR 2.05 -15.2

2.25 3.15 21.57 Home Depot HD 143.00 1,067

Cheddar cheese,blk,Chicago 158.00 OnAssignment ASGN 48.76
Oracle ORCL 42.06
1.1
1.1
GuggS&P400PrGrwth RFG 135.73 0.3 NYSE MKT highs - 5 iRhythmTechs IRTC
iShPHLXSemicond SOXX
38.26
132.29
7.4
0.5
KonaGrill
MarathonPatent MARA
KONA 8.20 -1.2
1.28 -2.9
GuggInsider NFO 52.10 0.2
Milk,Nonfat dry,Chicago lb. 87.00 OrmatTech ORA 56.95 0.1 CheniereEnerPtrs CQP 32.40 0.9 JackHenry JKHY 92.53 0.3
GuggMC Core CZA 57.95 0.2 MoleculinBiotech MBRX 1.08 -5.0
2.21 3.95 27.05 3M MMM 182.95 1,031 POSCO PKX 62.09 2.2 GuggUSLCOptVol OVLC 27.50 1.0
EnviroStar EVI 24.55 17.4 JanusSMidGwthAlpha JSMD 32.53 0.2 NatlCineMedia NCMI 12.63 -1.2
Cocoa,Ivory Coast-w n.a. PaycomSoftware PAYC 53.46 1.8 IQAgribusSmall CROP 33.18 0.3
GastarExplnPfdA GSTpA 21.80 8.7 KLA Tencor KLAC 88.47 -0.1 NumereX NMRX 5.37 1.5
2.19 0.65 4.45 General Electric GE 30.37 961 Coffee,Brazilian,Comp 1.4624 PennREITPfdC PEIpC 25.58 0.5 IndSelSectorSPDR XLI 65.89 0.2
GastarExplnPfdB GSTpB 23.84 7.3 KraftHeinz KHC 97.77 10.7 ProShUltraProShQQQ SQQQ 39.61 -1.2
PermianBasin PBT 9.66 6.8 IncomeOppRealty IOT 10.20 3.2 KuraOncology KURA 7.25 2.1
iShCoreDivGrowth DGRO 30.40 0.1 RamacoRscs METC 10.74 -1.4
1.98 1.35 9.25 Wal-Mart Stores WMT 69.37 1,004 Coffee,Colombian, NY 1.6403 PetroQuestEner PQ 4.75 6.5 iShGrwthAllocation AOR 41.91 0.1 LMI Aerospace LMIA 13.71 48.6 Sabre SABR 21.02 ...

1.93 Eggs,large white,Chicago-u 0.6050 PlatformSpecialty PAH 13.91 3.0 iShCurrHdgMSCIAus HAUD 23.63 1.0 NYSE MKT lows - 1 LakelandBcp LBAI 20.15 0.8 SAExploration SAEX 5.50 -3.0
1.24 8.49 Merck MRK 65.39 1,111 Procter&Gamble PG 91.36 0.3 iShCurHdgMSCISwitz HEWL 24.57 0.7 EtnVncOH EIO 12.83 -0.9 LeggMasonLowVol LVHD 29.56 ... SportsmansWrhs SPWH 4.98 1.2
Flour,hard winter KC 13.95 RAIT Fin PfdB RASpB 23.77 0.6 iShU.S.Industrials IYJ 126.75 0.1 LibertySirius A LSXMA 38.27 0.2 Tantech TANH 1.65 -2.8
1.85 2.22 15.20 Travelers TRV 121.95 996 Hams,17-20 lbs,Mid-US fob-u 0.57 RAIT Fin PfdA RASpA 22.66
RAIT Fin PfdC RASpC 25.08
1.7
1.4
iShUSAerospace&Def ITA
iShUSMedDevices IHI
150.35
147.99
0.5
0.7
Nasdaq highs - 173 LibertySirius C LSXMK
LibertySirius B LSXMB
38.04
40.32
0.2
4.7
US Energy
VASCO
USEG
VDSI
0.87 -2.2
13.05 -1.1
1.82 1.56 10.68 Visa V 87.46 1,123 Hogs,Iowa-So. Minnesota-u 73.95 RE/MAX RMAX 59.85 1.9 iShEdgeMSCIMlIntSC ISCF 26.53 ... Ansys ANSS 100.41 -0.2 LinearTech LLTC 64.93 0.2 VisionChina VISN 3.45 -3.3
Raytheon RTN 152.94 0.3 iShEdgeMSCIMultUSA LRGF 28.13 -0.1 AXT AXTI 7.45 2.8 MMACapitalMgmt MMAC 22.65 0.2 WebMD WBMD 46.91 -0.7
Pork bellies,12-14 lb MidUS-u n.a.
1.60 0.65 4.45 Coca-Cola KO 41.23 994 RedwoodTrust RWT 17.00 -0.5 iShEdgeMSCIUSAMom MTUM 80.54 0.1 Achaogen AKAO 22.74 3.1 Masimo MASI 84.15 2.9 XTL Biopharm XTLB 2.13 -34.9
Pork loins,13-19 lb MidUS-u 0.9215
1.57 1.23 8.42 American Express AXP 79.71 1,081 Steers,Tex.-Okla. Choice-u 119.00
1.57 1.98 13.56 McDonald’s MCD 127.80 1,050 Steers,feeder,Okla. City-u,w 150.29
Dividend Changes Company Symbol
Amount
Yld % New/Old Frq
Payable /
Record
1.11 1.99 13.63 IBM IBM 180.67 1,098 Fats and Oils
Dividend announcements from February 17. WisdmTr Bloomberg FR Trea USFR 0.5 .01 M Feb24 /Feb22
0.99 1.10 7.53 United Technologies UTX 112.15 1,029 Corn oil,crude wet/dry mill-u,w 38.9000 WisdomTree Emg Mkts Corp EMCB 3.9 .23 M Feb24 /Feb22
Amount Payable / WisdomTree Fd US HY Cp Bd WFHY 5.3 .225 M Feb24 /Feb22
0.97 0.62 4.25 Microsoft MSFT 64.62 1,046 Grease,choice white,Chicago-u 0.2750 Company Symbol Yld % New/Old Frq Record WisdomTree Fund Cp Bd Fd WFIG 2.8 .11 M Feb24 /Feb22
0.94 0.53 3.63 Nike NKE 56.75 1,116 Lard,Chicago-u n.a. WisdomTree Fund US ST Cp SFIG 1.5 .06 M Feb24 /Feb22
Soybean oil,crude;Centl IL-u 0.3124
Increased
WisdomTree Fund US ST HY SFHY 4.5 .19 M Feb24 /Feb22
0.73 0.80 5.48 Walt Disney DIS 110.06 1,056 AdvancePierre Foods APFH 2.3 .16 /.14 Q Mar06 /Feb27
Tallow,bleach;Chicago-u 0.3125 WisdomTree High Div Fund DHS 2.6 .15 M Feb24 /Feb22
Coca-Cola KO 3.6 .37 /.35 Q Apr03 /Mar15
Tallow,edible,Chicago-u n.a. WisdomTree SmallCap Div DES 1.8 .12 M Feb24 /Feb22
0.43 0.21 1.44 Verizon VZ 49.19 932 Dentsply Sirona XRAY 0.6 .0875 /.0775 Q Apr13 /Mar31
WisdomTree Strat Corp Bd CRDT 3.7 .23 M Feb24 /Feb22
First Savings Fincl Gp FSFG 1.1 .14 /.13 Q Mar31 /Mar03
0.36 0.28 1.92 DuPont DD 77.49 1,061 Medical Properties Tr MPW 7.2 .24 /.23 Q Apr13 /Mar16
WisdomTree US Agg Bd AGGY 2.8 .115 M Feb24 /Feb22
WisdTree Wstn Asset Uncon UBND 2.9 .12 M Feb24 /Feb22
–0.92 –0.76 –5.20 Exxon Mobil XOM 81.76 913 KEY TO CODES: A=ask; B=bid; BP=country elevator MGP Ingredients MGPI 0.4 .04 /.02 Q Mar24 /Mar01
WisTree Div Ex-Finls DTN 1.9 .13 M Feb24 /Feb22
bids to producers; C=corrected; E=Manfra,Tordella & Monotype Imaging Holdings TYPE 2.1 .113 /.11 Q Apr21 /Apr03
–1.95 –3.13 –21.44 UnitedHealth Group UNH 157.62 985 Brooks; G=ICE; I=Natural Gas Intelligence; National Health Investors NHI 5.1 .95 /.90 Q May10 /Mar31
WisTree Tr LC Div DLN 1.8 .125 M Feb24 /Feb22
L=livericeindex.com; M=midday; N=nominal; n.a.=not WisTree Tr MC Div DON 1.8 .15 M Feb24 /Feb22
–2.41 –2.72 –18.63 Chevron CVX 110.33 946 quoted or not available; R=SNL Energy; S=The Steel
NorthWestern NWE 3.6 .525 /.50 Q Mar31 /Mar15
WisTree Tr Total Div DTD 2.0 .14 M Feb24 /Feb22
Index; T=Cotlook Limited; U=USDA; W=weekly, Z=not Nu Skin Enterprises Cl A NUS 3.0 .36 /.355 Q Mar15 /Feb27
WisTree US Qlty Div Grwth DGRW 1.2 .035 M Feb24 /Feb22
Sources: WSJ Market Data Group; S&P Dow Jones Indices. For more information on the Dow Jones quoted. *Data as of 2/16 PBF Logistics PBFX 8.6 .45 /.44 Q Mar13 /Feb27
WisTree US SmCp Qlty Div DGRS 0.5 .015 M Feb24 /Feb22
Industrial Average and the 30 industrials, please visit www.djindexes.com Source: WSJ Market Data Group Ruth's Hospitality Group RUTH 2.1 .09 /.07 Q Mar09 /Feb23
WM EM Local Debt ELD 4.7 .145 M Feb24 /Feb22
Scana Corp SCG 3.7 .6125 /.575 Q Apr01 /Mar10
WT Asia Local Debt ALD 1.8 .065 M Feb24 /Feb22
T Rowe Price Group TROW 3.2 .57 /.54 Q Mar30 /Mar16
WT Aus & New Zeal Debt AUNZ 2.3 .035 M Feb24 /Feb22
Wendy's Co WEN 2.0 .07 /.065 Q Mar15 /Mar01
Exchange-Traded Portfolios | WSJ.com/ETFresearch Reduced
WT Barclays US Agg Bd
WT Barclays US Agg Bd Neg
AGZD
AGND
2.0
1.8
.08
.065
M
M
Feb24 /Feb22
Feb24 /Feb22
Mesa Royalty Trust MTR 10.2 .1133 /.1572 M Apr28 /Feb28 WT Interest Rt Hdg HY Bd HYZD 5.5 .11 M Feb24 /Feb22
Closing Chg YTD
Largest 100 exchange-traded funds, latest session ETF Symbol Price (%) (%) WT Neg Dur HY Bd Fd HYND 5.1 .09 M Feb24 /Feb22
Initial
Friday, February 17, 2017 Closing Chg YTD iShEdgeMSCIMinUSA USMV 47.11 0.08 4.2 Nuveen Pfd & Incm 2022 JPT .1275 Apr03 /Mar15 Foreign
ETF Symbol Price (%) (%) iSharesGold IAU 11.89 –0.34 7.3 Pennsylvania REIT Pfd C PEIpC .24 Mar15 /Mar01 Copa Holdings Cl A CPA 2.0 .51 Q Mar15 /Feb28
Closing Chg YTD
ETF Symbol Price (%) (%) iShiBoxx$InvGrCpBd LQD 117.74 0.26 0.5 TiVo TIVO .18 Mar15 /Mar01 Endurance Spec Dep Pfd C ENHpC 6.0 .39688 Q Mar15 /Mar01
iShIntermCredBd CIU 108.78 0.14 0.5
iShiBoxx$HYCpBd HYG 87.77 0.10 1.4 Virtus Invt Pfd. D VRTSP 1.8125 May01 /Apr15 Enerplus ERF 1.0 .00765 M Mar15 /Feb28
AlerianMLPETF AMLP 12.98 –0.54 3.0 iSh1-3YCreditBond CSJ 105.11 0.07 0.2
Granite REIT GRP/U 5.6 .166 M Mar15 /Feb28
iShJPMUSDEmgBd EMB 112.95 0.03 2.5
CnsmrDiscSelSector XLY 86.61 0.32 6.4 iSh3-7YTreasuryBd IEI 122.91 0.17 0.3 Funds and investment companies Sanofi ADR SNY 3.7 1.57709 A Jun07 /May15
iShMBSETF MBB 106.53 0.14 0.2
CnsStapleSelSector XLP 54.46 0.50 5.3 iShCoreHiDividend HDV 83.64 0.28 1.7 Apollo Sr Fltg Rate Fd AFT 6.2 .09 M Mar31 /Mar21 Xinyuan Real Estate ADR XIN 8.0 .10 Q Mar14 /Feb27
iShMSCIACWIETF ACWI 62.42 –0.06 5.5
DBGoldDoubleLgETN DGP 23.04 –0.73 14.5 iShCoreMSCIEAFEETF IEFA 56.30 –0.30 5.0 Apollo Tactical Incm Fd AIF 8.4 .11 M Mar31 /Mar21 Yamana Gold AUY 0.6 .005 Q Apr14 /Mar31
iShMSCIEAFESC SCZ 52.91 –0.51 6.2
DBGoldDoubleShrt DZZ 5.91 0.60 –13.9 iShCoreMSCIEmgMk IEMG 46.56 –0.41 9.7 Franklin Ltd Duration IT FTF 10.7 .1091 M Mar15 /Feb28
iSharesMSCIEAFEETF EFA 60.50 –0.26 4.8 KEY: A: annual; M: monthly; Q: quarterly; r: revised; SA: semiannual;
DeutscheXMSCIEAFE DBEF 28.93 0.14 3.1 iShCoreS&P500ETF IVV 236.49 0.11 5.1 Franklin Universal Trust FT 5.5 .032 M Mar15 /Feb28
iShMSCIEmgMarkets EEM 38.39 –0.42 9.7 SPDR DJIA Tr DIA 3.3 .56053 M Mar13 /Feb22 S2:1: stock split and ratio; SO: spin-off.
EnSelectSectorSPDR XLE 71.97 –0.55 –4.4 iShCoreS&PMdCp IJH 172.96 0.07 4.6
iShMSCIEurozoneETF EZU 35.59 –0.70 2.9
FinSelSectorSPDR XLF 24.47 0.04 5.2 iShCoreS&PSmCpETF IJR 70.20 –0.14 2.1
iShMSCIJapanETF EWJ 51.19 –0.06 4.8
GuggS&P500EW RSP 90.90 0.20 4.9 iShS&PTotlUSStkMkt ITOT 54.00 0.13 5.3
iShNasdaqBiotech IBB 294.35 0.47 10.9
HealthCareSelSect XLV 73.66 0.14 6.8 iShCoreUSAggBd AGG 108.36 0.22 0.3
IndSelSectorSPDR XLI 65.89 0.17 5.9 iShSelectDividend DVY 90.99 –0.20 2.7
iShNatlAMTFrMuniBd
iShRussell1000Gwth
MUB
IWF
108.30
112.22
0.13
0.22
0.1
7.0
Mutual Funds | WSJ.com/fundresearch Fund
Net YTD
NAV Chg %Ret Fund
Net YTD
NAV Chg %Ret
iShRussell1000ETF IWB 131.11 0.17 5.3 Oakmark 75.66 +0.25 4.4 MuLTAdml 11.38 +0.02 0.5
OakmrkInt 23.80 -0.16 4.8 MuLtdAdml 10.91 ... 0.9
iShRussell1000Val IWD 116.05 0.05 3.6 Explanatory Notes Data provided by
Old Westbury Fds MuShtAdml 15.77 +0.01 0.5
iShRussell2000Gwth IWO 161.60 0.26 5.0 LrgCpStr +0.02 4.9 PrmcpAdml r 116.69 +0.31 7.2
ADVERTISEMENT Top 250 mutual-funds listings for Nasdaq-published share classes with net assets of 13.46
iShRussell2000ETF IWM 139.11 –0.06 3.2 at least $500 million each. NAV is net asset value. Percentage performance figures Oppenheimer Y REITAdml r 118.72 +0.27 1.6
iShRussell2000Val –0.22 are total returns, assuming reinvestment of all distributions and after subtracting DevMktY 34.47 -0.08 7.8 SmCapAdml 64.55 +0.06 4.5

The Mart
IWN 120.89 1.6
annual expenses. Figures don’t reflect sales charges (“loads”) or redemption fees. IntGrowY 35.80 -0.16 3.2 STBondAdml 10.45 +0.01 0.4
iShRussell3000ETF IWV 139.80 0.11 5.1 STIGradeAdml 10.66 +0.01 0.5
iShRussellMid-Cap IWR 188.09 0.13 5.2 NET CHG is change in NAV from previous trading day. YTD%RET is year-to-date P TotBdAdml 10.67 +0.01 0.5
return. 3-YR%RET is trailing three-year return annualized. TotIntBdIdxAdm 21.52 ... -0.6
To advertise: 800-366-3975 or WSJ.com/classifieds iShRussellMCValue IWS 83.86 –0.02 4.3 Parnassus Fds
iShS&P500Growth IVW 129.67 0.18 6.5 e-Ex-distribution. f-Previous day’s quotation. g-Footnotes x and s apply. j-Footnotes e ParnEqFd 40.78 +0.03 3.8 TotIntlAdmIdx r 26.13 -0.06 6.1
and s apply. k-Recalculated by Lipper, using updated data. p-Distribution costs apply, PIMCO Fds Instl TotStAdml 59.04 +0.10 5.3
iShS&P500ValueETF IVE 105.19 0.11 3.8 AllAsset NA ... NA TxMIn r 12.36 -0.03 5.3
12b-1. r-Redemption charge may apply. s-Stock split or dividend. t-Footnotes p and r
ANNOUNCEMENTS BUSINESS OPPORTUNITY iShUSPfdStk PFF 38.50 0.03 3.5 HiYld 8.90 ... 1.7 ValAdml 37.52 ... 3.6
apply. v-Footnotes x and e apply. x-Ex-dividend. z-Footnote x, e and s apply. NA-Not
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THE WALL STREET JOURNAL.
Stock
Indexes
End Week
At Records
BY AARON KURILOFF
AND RIVA GOLD
The Dow Jones Industrial
Average inched higher Friday
to notch its seventh consecu-
tive record close.
Friday’s gain ended a week
in which signs of economic
growth and improving corpo-
rate earnings helped push ma-
jor U.S. indexes to multiple new
highs, some in-
FRIDAY’S vestors said.
MARKETS The Dow in-
dustrials, S&P
500 and Nas-
daq Composite all notched
weekly gains of at least 1.5%,
spurred by hopes for tax cuts,
regulatory rollbacks and in-
creased government spending
that several analysts said
could boost corporate profits.
“Investors this week have
seen strong economic data and
statements from Federal Re-
serve Chairwoman Janet Yel-
len supporting the idea that
growth is reasonably good,”
which should help lift earn-
ings, said Paul Quinsee, global
head of equities at J.P. Morgan
Asset Management.
The blue-chip index rose
4.28 points, or less than 0.1%,
Friday to 20624.05, posting its
biggest weekly gain since Dec.
9 with a 1.7% climb. The S&P
500 edged up 3.94 points, or
0.2%, Friday to 2351.16 and the
Nasdaq Composite added 23.68
points, or 0.4%, to 5838.58. All
1.7%
Increase by the Dow Jones
Industrial Average for the week
three indexes closed at new
highs.
On Friday, Verizon Commu-
nications led gains in the Dow
industrials, rising 73 cents, or
1.5%, to $49.19.
Shares of Kraft Heinz
soared 9.37, or 11%, to 96.65,
the most in the S&P 500, after
the company said it has made
a bid to merge with U.K. con-
sumer-products giant Uni-
lever, whose London-listed
shares jumped 13%.
Energy shares in the S&P
500 fell 0.5% Friday to finish
the week 2.1% lower. Some an-
alysts said a glut of gasoline,
brought on by a decline in U.S.
consumption, threatens the
yearlong rally in crude prices.
  
Financial stocks led weekly
gains in the S&P 500, climbing
3% despite Friday’s decline of
less than 0.1%.
* * * * Saturday/Sunday, February 18 - 19, 2017 | B9
MARKETS
France’s Bonds Take a Beating
BY MIKE BIRD ward French stocks was at its
Coming Apart
Government bonds in
France and southern Europe
Yield on 10-year government bond
1.5%
lowest level in two years. That
shift comes even as investors
generally warm toward euro-
France
tumbled again Friday, with
fresh data showing that for-
eign investors continue to
Friday
1.041%
zone equities.
“The two-round French
[election] system means anti-
dump French debt ahead of 1.0 Le Pen voters can rally around
the country’s presidential a single alternative in the final
GUILLAUME SOUVANT/GETTY IMAGES
election. round and, therefore, she
The spread between French 0.5 Spread needs more than a lead in the
and German 10-year govern- polls, she needs a majority, to
ment-bond yields widened to win the presidency,” said
0.74 percentage point on Fri- 0.0 Tomas Hirst, analyst at Credit-
day from 0.66 percentage Sights. The election rounds
point Thursday. French bonds Germany are in March and May.
are now trading in the same 0.304% But “markets are under-
–0.5
direction as those of the standably wary of being
southern European countries, Emanuel Macron is the favorite in the French presidential race. 2016 ’17 caught out as they were with
whose debt was hit hardest by Source: Tradeweb the Brexit and Trump votes
the euro sovereign-debt crisis. countries could leave the eu- France, up from 20.3% at the THE WALL STREET JOURNAL. last year,” he added.
Bonds slid in Italy, Spain, rozone, questioning the single beginning of February. Investors are also currently
Portugal and Greece on Thurs- currency’s existence. While former economy min- most in two years, according grappling with a more familiar
day and Friday. Investors Concerns for the currency ister Emanuel Macron remains to European Central Bank data problem for the eurozone,
moved money into German bloc are increasing once again the favorite in the presidential released Friday. as Greek bonds sank Friday.
debt, with the yield on its 10- as betting odds rise for an race, foreign investors aren’t Survey data suggest that in- Athens is again embroiled in a
year government bond falling election victory for Marine Le taking the risk even as local- ternational money managers tussle with international cred-
as low as 0.3% during Friday’s Pen, leader of the far-right Na- fund investors remain more who are invested in other itors over the terms of
trading, down from 0.35% at tional Front who has promised sanguine. French markets are also get- its bailout. Yields on 10-year
Thursday’s close. to take France out of the eu- Foreign-based investors ting nervous. Bank of America Greek bonds rose as high as
During the sovereign-debt rozone. Betfair now gives Mrs. sold €30 billion ($32 billion) Merrill Lynch’s regular survey 8.1% Friday from a close of
crisis in 2010 to 2012, inves- Le Pen a 28.6% chance of be- in French bonds during the of fund managers showed 7.9% Thursday. Yields rise as
tors were concerned that some coming the president of last three months of 2016, the global investors’ sentiment to- bond prices fall.
China Sets Europe’s Tone
The China Effect
Shares most sensitive to changes in the Chinese economy have
significantly outperformed over the past year.
BY RIVA GOLD have performed the worst. spite concerns over the poten-
For decades European mar- tial destabilizing effects of Metals and Mining Shares Vs. Broader European Market
Europe’s economy is gaining kets have followed Wall Street’s coming elections in France and
strength, but its rallying stock lead, but China is becoming an the Netherlands. 160%
markets may say as much increasingly big influence on But large parts of local stock MSCI Europe
about momentum in China. the direction of local markets. markets are climbing higher on 120 Metals and
Shares of European compa- “It’s been the year of the China China’s back. Mining
nies with the tightest links to trade,” said Wolf von Rotberg, European publicly traded 80
the Chinese economy have sig- a strategist at Deutsche Bank. companies collectively generate
nificantly outperformed their To be sure, local shares have only 5%-6% of their revenue di- 40
peers, helping the MSCI Europe also benefited from improve- rectly from mainland China, ac- MSCI Europe
index, a basket of stocks based ments in both the European cording to data provider Fact- 0
in 15 European countries, rise and U.S. economies. Set. But China exerts a much Feb. 2016 ’17
more than 20% from its bottom The eurozone economy kept bigger influence, through its
in February 2016.
European stocks most
closely correlated to the Chi-
nese economy—such as mining
pace with that of the U.S. for
the first time since 2008 last
year, while its jobless rate fell
to a seven-year low.
impact on the global economic
cycle, commodity prices and
broader appetite for risky as-
sets.
Source: Deutsche Bank, MSCI
as China and the U.S. to drive
its economy and stock markets
THE WALL STREET JOURNAL.
with a 32% rise in the broader
FTSE 100.
companies and producers of The economy is expected to Sectors such as German in- higher. Companies with big direct
capital goods like machinery grow 1.6% this year, according dustrials have done particu- Europe’s mining sector, the revenue exposure to mainland
and equipment—have fared to the European Commission, larly well over the past year as region’s best performer over China have also outperformed.
30% better than the overall and a majority of fund manag- a result of China’s stimulus the past year, has also been Luxury-goods maker LVMH
market over the past year, ac- ers surveyed by Bank of Amer- program, said Paul Markham, a lifted by sharp gains in metals Moët Hennessy Louis Vuitton,
cording to an analysis by ica expect European economic director at Newton Invest- prices spurred by expectations for instance, recently pointed
Deutsche Bank. Sectors with growth and inflation to pick up ment Management. for Chinese demand. to China as one reason its net
the most negative correlation over the next year. “Europe is more of an eco- The U.K.’s FTSE 350 Mining profit jumped 14% in the sec-
to China—including telecoms, That has helped renew appe- nomic follower,” he said, re- index jumped 145% from its ond half of 2016. Its shares are
retail and pharmaceuticals— tite for the region’s equities de- quiring growth from areas such bottom a year ago, compared up 31% from a year ago.
Trump Moves Some Currencies ADVERTISEMENT
Showroom
BY SAUMYA VAISHAMPAYAN To advertise: 800-366-3975 or WSJ.com/classifieds
HONG KONG—U.S. Presi-
MASERATI
dent Donald Trump’s accusa-
tions of currency manipulation
appear to be reaching an audi-
ence he may not have primar-
ily intended.
Mr. Trump vowed on the
     
BRENT LEWIN/BLOOMBERG
campaign trail to revive Amer-
ican manufacturing, in part by
taking a hard line on Chinese
trade practices and labeling

 
      
Some investors said that with
stocks at records, questions re-
main about the prospects for
policies such as increased gov-
ernment spending and corpo-
rate-tax adjustments that have
fueled stocks’ record run and
prompted selling in government
debt since the U.S. election.
“We see expensive valua-
tions and slightly exuberant
sentiment, which is making us
take a little step back and sell
some equities,” said Wouter
the country a currency manip-
      
ulator. Since taking office, the
president has accused both
China and Japan of consis-
tently devaluing their curren-
A Thailand tourist in front of an ad for foreign-exchange services.

  
 
cies, while his top trade ad- Jens Weidmann, president of
viser, Peter Navarro, has the German central bank, said Money Talk
accused Germany of benefiting earlier this month. The new Taiwan dollar, Korean
from what he termed the China hasn’t directly com- won and Swiss franc have
“grossly undervalued” euro. mented on Mr. Trump’s criti- outperformed the euro and the
All three countries, which cisms, but most analysts say yen against the U.S. dollar since
rank among the U.S.’s top five Beijing recently has been prop- the election.
trading partners, have brushed ping up the yuan by selling for-
off the administration’s claims. eign-currency reserves. Performance against U.S. dollar   

      

 
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Sturkenboom, multiasset in- “No one has the right to tell Still, some smaller econo-
vestment strategist at Russell
Investments, which manages
us that the yen is weak,” Japa-
nese finance minister Taro Aso
mies appear to be taking no-
tice, notably Taiwan and Swit-
New Taiwan dollar

–0.4
2.3%

Won

$258.1 billion in assets. told parliament on Wednes- zerland. The U.S. Treasury in Swiss
 
 
  
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Prices of U.S. government day. Japan hasn’t directly in- October found both had en- –2.4
franc 
.  # % %# + .
/. 0 0
 % + # %

bonds rose Friday, sending
yields lower. The yield on the
benchmark 10-year U.S. Trea-
sury note fell to 2.425% from
2.450% Thursday.
The Stoxx Europe 600 rose
less than 0.1% Friday, increas-


ing its weekly gain to 0.8%.

8 $0
9 8  -:"8 +(
Borrowing Benchmarks | WSJ.com/bonds
tervened in currency markets gaged in persistent, one-way
since 2011 following a major currency intervention, essen-
tsunami and resulting Fuku- tially by buying foreign cur-
shima nuclear disaster. rencies such as the U.S. dollar
“The charge that Germany and selling their own to main-
exploits the U.S. and other
countries with an undervalued
tain weak exchange rates.
Analysts say the central
currency is more than absurd,” banks of Switzerland and Tai-
wan are now stepping back
from those activities, perhaps
to avoid closer scrutiny from
–3.4 Euro
LEASE
–7.9 Yen
Note: As of Feb. 17
Source: Thomson Reuters
THE WALL STREET JOURNAL.
< 5": -  < > 
Bank intervened heavily in < = ":  " 5/ < )  
currency markets to slow the  2
franc’s rise, spending an " ; )),  " 

Money Rates February 17, 2017 the Trump administration. The amount roughly equal to its    
  
      

upshot: The Swiss franc has current-account surplus for

Key annual interest rates paid to borrow or lend money in U.S. and advanced 1.6% against the U.S. the period, J.P. Morgan ana-  

international markets. Rates below are a guide to general levels but dollar this year, while the new lysts note. Over the next four   
 +' /0"
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don’t always represent actual transactions. Taiwan dollar has surged 5%. months, the scale fell to about  
     1 +  0 , *2
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Both have outperformed the two-thirds of the surplus.   
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Inflation Week —52-WEEK— euro and yen since the U.S. “It’s not an entirely fanciful    
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Jan. Index Chg From (%) election in early November. suggestion that the SNB might   % &  '
( ,"" 56 
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level Dec. '16 Jan. '16 Britain 0.25 0.25 0.50 0.25
Australia 1.50 1.50 2.00 1.50
Taiwan’s central bank be tapering intervention in or-  ) *
 '  +2 $&  '
( "6 

U.S. consumer price index bought $500 million in foreign der to guard against the risk +'  , *
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All items 242.839 0.58 2.5 Secondary market currencies in the fourth quar- of being cited by the U.S. +' -" .
 '  +,2# #
 ) ,"    &
Core 250.083 0.38 2.3 Fannie Mae ter, well below its quarterly Treasury as a currency manip-
International rates 30-year mortgage yields average of more than $3 bil- ulator,” the analysts wrote. AVIATION
30 days 3.634 3.644 3.828 2.806 lion since 2012, according to The Swiss National Bank
Week
Latest ago
52-Week
High Low
60 days
Notes on data:
3.665 3.674 3.862 2.832 Khoon Goh, head of Asia re-
search at ANZ in Singapore,
declined to comment.
Recent comments from offi-
SHOWROOM SELLING/BUYING GULFSTREAM
U.S. prime rate is effective December 15, 2016.
Prime rates U.S. prime rate is the base rate on corporate who said he suspects it is cials in South Korea suggest (800) 366-3975 G650 or G550?
U.S. 3.75 3.75 3.75 3.50 loans posted by at least 70% of the 10 largest
U.S. banks;
stepping back from “currency- they are similarly eager to sales.showroom@wsj.com Please contact the
Canada 2.70 2.70 2.70 2.70
Japan 1.475 1.475 1.475 1.475
Other prime rates aren’t directly comparable; smoothing operations.” The avoid U.S. ire, says Govinda Place an ad with the self-service tool at: Gulfstream specialists
lending practices vary widely by location. central bank said it doesn’t Finn, senior analyst at Standard wsj.com/classifieds AVIATRADE INC since 1988
Complete Money Rates table appears Monday
Policy Rates through Friday. comment on currency policy. Life Investments in Edinburgh. 1-908-696-1174
© 2017 Dow Jones & Company, Inc.
Euro zone 0.00 0.00 0.05 0.00 Sources: Bureau of Labor Statistics; SIX Financial For the first nine months of The Korean won is up 5.1% All Rights Reserved.
philiprushton@aviatrade.aero
Switzerland 0.50 0.50 0.50 0.50 Information
last year, the Swiss National against the dollar this year.
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
B10 | Saturday/Sunday, February 18 - 19, 2017
Gas Glut Emerges as Drivers Tap Brakes
Gasoline sales sank in
January, leaving tanks
brimming; ‘it kind of
ruins your whole year’
BY TIMOTHY PUKO
AND ALISON SIDER
A gasoline glut brought on
by drivers buying less at fill-
ing stations is emerging as
one of the biggest threats to
the yearlong oil-price rally.
U.S. gasoline consumption
plummeted last month, nearly
matching a 15-year low, gov-
ernment estimates show. It fell
to as low as 8.2 million barrels
a day, averaged over the four-
week period ended Jan. 27.
The drop in demand
befuddles analysts;
prices may need to
decline to boost sales.
January sales at the pump
fell 4.4% from a year ago, ac-
cording to data from the Oil
Price Information Service.
That has led to a record
amount of surplus gasoline,
the U.S. Energy Information
Administration said Wednes-
day. Storage levels swelled last
week to 259 million barrels,
the highest in EIA records dat-
ing to 1990.
“It was a poor January by
any stretch of the imagination
for gasoline,” said Tom Kloza,
the Oil Price Information Ser-
vice’s global head of energy
analysis.
This drop-off in demand
would be unlike any other out-
side of a recession, according
to Goldman Sachs Group Inc.
It is leaving many analysts be-
fuddled. Some question the
data. Others attribute the de-
cline to storms and poor
weather. Drivers may be put
Email: heard@wsj.com
Can Kraft Heinz Afford Unilever?
Even at the lowball price
Kraft Heinz Co. has offered,
buying soap-to-soup giant
Unilever PLC would stretch
its balance sheet to its limits.
But the U.S. food group
needs a deal.
Investors cheered news of
the potential acquisition,
sending Kraft Heinz shares
up 11% Friday. 3G Capital—
the Brazilian investment firm
that teamed up with Warren
Buffett’s Berkshire Hatha-
way to buy Heinz in 2013
and then merged it with
Kraft two years later—is a
legendary cost-cutter. Kraft
Heinz’s operating margin last
year was roughly 23%; before
the merger, Kraft’s was 10%.
But it will take aggressive
sleight of hand even by 3G’s
standards to acquire Uni-
lever, which has roughly the
same enterprise value as
Kraft Heinz.
Unilever said the U.S. food
group had proposed $30.23 a
share in cash, plus 0.222 new
shares, equivalent to $21.45
after Friday’s pop. Kraft Heinz
already has $29 billion of net
debt and would need to take
on a further $90 billion to
Amazon Competitors Have Big Cloud Businesses to Fill
Some things, even huge
piles of money can’t buy.
One of them might be the
ability to unseat Ama-
zon.com’s AWS as the king
of the cloud-computing mar-
ket. Not that others haven’t
made a game effort: The two
largest challengers, Micro-
soft and Google parent Al-
phabet, have dropped about
$52 billion combined in capi-
tal expenditures over the
past three years, much of
that for massive networks of
data centers and related
equipment. That is double
what they spent over the
previous three-year period.
It hasn’t been without re-
sults. Microsoft’s Azure
cloud service more than dou-
off by pump prices 31% higher
than a year ago, according to
the EIA. Many analysts expect
demand to rebound in coming
weeks.
The country’s cost of living
did increase in January by the
most in four years in big part
from rising gasoline prices,
the Labor Department said
Wednesday. Its data showed
pump prices up 7.8% from De-
cember to January.
Those prices may have to
fall to boost consumption.
Otherwise, oil markets may be
faced with budget-conscious
consumers leaving a glut lin-
gering for months, maybe un-
til the late spring or summer,
when driving peaks.
“It kind of ruins your whole
year potentially,” said Sam
Margolin, an analyst at Cowen.
“Demand growth appears to
be the riskiest element of the
oil equation in 2017, and the
rally could pause until driving
season.”
Money managers have been
betting on rising oil prices at a
record rate. They held 10 bull-
ish bets for every one bearish
bet as of Feb. 14, according to
Commodity Futures Trading
Commission data released Fri-
day. That puts the market in a
risky spot because traders
may feel compelled to sell
quickly on any sign that oil’s
oversupply isn’t ending.
Crude futures edged up Fri-
day. But for the week, light,
sweet crude for March deliv-
ery dropped 46 cents, or 0.9%,
to $53.40 a barrel on the New
York Mercantile Exchange.
U.S. drivers account for 9%
of total global oil demand, ac-
cording to Cowen. They helped
steady the market a year ago
when they took advantage of
lower prices to drive at record
lengths. Motorists drove an
additional 85 billion miles in
the first 11 months of last year,
compared with 2015, accord-
ing to federal data.
But with gasoline consump-
tion now down to levels rarely
HEARD ON THE STREET
Household Gains
Share price as a multiple of forward earnings
30 times
Kraft Heinz
Unilever
25
20
Kraft-Heinz
merger announced
15
2014 ’15
Source: FactSet
fund the cash portion of the
deal. Add in Unilever’s debt,
and the total is $132 billion—
about 7.5 times combined
Ebitda. That is much higher le-
verage than in last year’s con-
sumer-goods megadeal: An-
heuser-Busch InBev’s purchase
of SABMiller to create the
world’s biggest brewer. The
comparison is apt because the
beer giant was built by Carlos
Brito, formerly employed by
3G Capital’s owners. Before
cost savings, ABI’s near-$110
Buy Box
Amazon’s trailing 12 months:
Free cash flow
$10 billion Adjusted free cash flow*
5 prise customers. It took AWS
0 $1 billion mark.
–5 Quarterly
2015 ’16
*Reflects impact of lease
repayments and capital leases
Source: the company
bled revenue in 2016 to
about $2.7 billion, according
to J.P. Morgan.
Google’s Cloud Platform
surpassed $1 billion in reve-
nue in 2016, estimates Ray-
mond James.
MARKETS
Plentiful
Gasoline prices are up 31% from a year ago, which may have kept drivers off the road
in January and led to a record surplus.
Weekly retail price for regular gasoline
$2.50 per gallon
2.25
2.00
1.75
1.50
2016
80%
Rise in U.S. crude
futures over the
past year
Average January gasoline sales
per retail location
81,000 gallons
80,000
79,000
78,000
77,000
76,000
2013 ’14 ’15 ’16
Sources: Oil Price Information Service (sales); U.S. Energy Information Administration (price, supply)
seen since the early 2000s, a
glut has been building. There
is enough gasoline in storage
to cover 31 days of U.S. driver
demand—the most in 22 years,
according to the EIA. A similar
situation played out a year ago
and left a glut lingering for
months, weighing on crude
FINANCIAL ANALYSIS & COMMENTARY
’16
THE WALL STREET JOURNAL.
billion offer was expected to
leave the combined company
with net debt at about 4.5-
times forecast Ebitda.
If Kraft Heinz succeeds in
buying Unilever, axing costs
would boost expected profits.
The latter has made much of
its use of “zero-based bud-
geting”—the tactic favored
by 3G—but its operating mar-
gin last year was 14.8%, well
below Kraft Heinz’s. Finding
savings is much easier in the
merger of brewers than pro-
The latter is noteworthy
given that it has been barely
a year since Google brought
in former VMware chief Di-
ane Greene to run the cloud
division and focus on enter-
at least five years to hit the
But Amazon has kept gain-
ing momentum. AWS gener-
ated $12.2 billion in revenue
in 2016, up 55% from the pre-
vious year.
Google Cloud could double
revenue this year to $2 bil-
lion but, even if it did,
Google Cloud still would be
generating less than 12% of
the revenue that Wall Street
expects from AWS in 2017.
That speaks to Amazon’s
Weekly U.S. gasoline supply
32 days
30
28
26
24
22
’17 2014
prices.
Refiners had been running
hard to take advantage of ris-
ing prices for gasoline futures,
which rose 32% from mid-No-
vember to late December. That
activity may be slowing.
Valero Energy Corp., the
largest U.S. refiner, said last
ducers of packaged food and
other goods, though. Food, in
which Kraft Heinz specializes,
accounts for only 43% of Uni-
lever’s portfolio, notes Citi.
Mr. Buffett might inter-
vene to make the deal possi-
ble. Berkshire Hathaway
owns 26.8% of Kraft Heinz
and has roughly $85 billion
in cash. He helped fund the
Kraft-Heinz merger. That may
explain the apparent lack of
concern among Kraft Heinz’s
independent shareholders.
However, a higher bid is
needed—Unilever already
’17 said as much Friday. The $51-
a-share offer values Unilever
at roughly 15.4 times ex-
pected Ebitda, versus almost
21 times for SABMiller. This
month, Unilever’s U.K.-listed
peer Reckitt Benckiser of-
fered 19 times for U.S. Mead
Johnson, calculates Barclays.
The deal is logical: There
is little growth in consumer
products, so the model ap-
pears to be: Buy, cut costs and
buy again. Kraft Heinz believes
it needs a big new target. It
should prove a determined
hunter. —Stephen Wilmot
and Paul J. Davies
first-mover advantage. It
launched its first cloud offer-
ings 11 years ago, long before
it was clear why an online
retailer would covet the ex-
pensive business of IT ser-
vices. Investors at the time
worried Amazon had found a
new money pit. Free cash
flow fell in 2006, after grow-
ing for four years.
But Amazon has now had
the time to leverage that in-
vestment—and billions
more—into a very profitable
business. Operating income
for AWS doubled to $3.1 bil-
lion in 2016, producing a
margin of 25%.
By contrast, Amazon’s
combined retail business
generated an operating mar-
* *** THE WALL STREET JOURNAL.
Feb. 13
$2.31
’17
’15 ’16 ’17
THE WALL STREET JOURNAL.
month that there is a glut of
winter-grade gasoline that will
have to be sold off before
summer. “We’re producing
more diesel and gasoline than
the market can absorb,” said
Gary Simmons, Valero’s senior
vice president of supply.
Refineries have already
OVERHEARD
Pharmaceutical company
Sage Therapeutics says its
policy is to not comment on
speculation about takeover
activity. It should tell that to
its own chief executive, Jef-
frey Jonas, who sparked talk
of a buyout on Thursday.
He told Bloomberg that
Sage is “on top of everyone’s
M&A list” and “hearing a great
deal from a lot of companies”
after some encouraging news
on its experimental drug for a
major depression disorder.
He added that “our hope is
that we can remain indepen-
dent,” but investors focused
on the hints of a possible
deal, sending the company’s
shares up 9% Thursday.
The company released a
statement saying Mr. Jonas
“acknowledged the industry’s
interest in the” drug’s data
and “did not imply that the
company was in discussions
with potential buyers.”
It added that “Sage will
have no further comment on
these matters.”
Presumably Mr. Jonas,
having learned his lesson,
won’t either.
gin of just over 2% for the
year. Free cash flow, ad-
justed for capital leases and
principal repayments,
jumped 55% to $3.9 billion
by the end of 2016.
This isn’t to say Google
and Microsoft are wrong to
target the cloud. Brent
Bracelin of Pacific Crest esti-
mates that the top 30 cloud
providers now account for
only about 5% of annual cor-
porate spending on enter-
prise technology.
A big portion of that
spending will move to the
cloud. So there is plenty of
market up for grabs—pro-
vided one can get around
Amazon’s rather large mitts.
—Dan Gallagher
slowed their utilization rate to
85.4% from 93.6% in about a
month for maintenance they
typically do in the winter. The
amount of gasoline in storage
has continued to rise anyway,
another possible indication of
weak demand.
Some analysts question
whether the fall in gasoline
consumption is as bad as some
data indicate.
The U.S. is near full em-
ployment, and consumer con-
fidence was at a 15-year high
going into January. These fac-
tors usually mean more people
are driving to work and shops.
Economic activity was so
strong that gasoline demand
likely fell by somewhere be-
tween 30,000 and 150,000 bar-
rels a day last month, com-
pared with January 2016,
according to Goldman Sachs
estimates. EIA data, by con-
trast, put that drop-off at
about 450,000 barrels a day.
The government’s estimate
“is perhaps a little too large to
be fully credible and flies in
the face of other indicators,”
said Paul Horsnell, head of
commodity research at Stan-
dard Chartered PLC.
Robert Merriam, director of
EIA’s Office of Petroleum and
Biofuels Statistics, said much
of the data in question is an
estimate based on figures
from gasoline suppliers, which
are a proxy for actual drivers
and retailers.
Even so, others anticipate
long-term problems. BNP
Paribas said it is hard to imag-
ine where additional annual
increases in demand could
come from. Refiners could
eventually cut the amount of
oil they buy if consumers
don’t increase consumption by
a million barrels of gasoline a
day, said Donald Morton, who
runs an energy trading desk at
HJ Sims.
“If we don’t see gasoline
demand pick up to those lev-
els, we’re going to have is-
sues,” he said.
WSJ.com/Heard
Storm Ahead
Of the Calm
For Applied
At Applied Materials,
there is a definite sense that
one actually can have too
much of a good thing.
The maker of the expensive
equipment used to produce
semiconductors as well as
displays for TVs and smart-
phones is an established giant
in what has been a highly cy-
clical industry. Its business
depends on the spending pat-
terns of a few large custom-
ers so boom periods naturally
have been followed by some
pretty significant busts.
Fears of a downturn have
subsided somewhat over the
past year as Applied has en-
joyed steadily strong demand
across different customer
groups, including OLED dis-
play makers reportedly gear-
ing up for the next iPhone.
But a sharp jump in new
equipment orders for the fis-
cal first quarter reported
Wednesday renewed some
concerns. Orders jumped 86%
year over year to a record of
$4.2 billion, for its biggest
surge in seven years, accord-
ing to data from Capital IQ.
That has analysts worried
about an inevitable slowdown,
as Applied’s customers digest
those purchases. Wall Street
is expecting new equipment
orders to fall over the next
two quarters, per FactSet. The
stock, which has doubled in
value over the past year,
slipped a bit after the report.
But even if near-term or-
ders moderate, analysts see
strong drivers that will keep
sales growing over the next
three years. Timothy Arcuri of
Cowen & Co. also projects
“massive increases” in capital
return supported by growing
free cash flow. And, at 13.8
times forward earnings, Ap-
plied trades at a discount to
peers and to its own five-year
average of 15 times. Not a bad
place to stack up a few more
chips. —Dan Gallagher
 For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com

From perpetual Patents, ethics,

nurse to Oscar a strange lab and
winner: Octavia irate scientists:
Spencer isn’t a the riveting book
hidden figure now ‘Vaccine Race’
C11 C5

BOOKS | CULTURE | SCIENCE | COMMERCE | HUMOR | POLITICS | LANGUAGE | TECHNOLOGY | ART | IDEAS
© 2017 Dow Jones & Company. All Rights Reserved. * * * * THE WALL STREET JOURNAL. Saturday/Sunday, February 18 - 19, 2017 | C1
PHOTOGRAPHS BY MAX WHITTAKER/PRIME FOR THE WALL STREET JOURNAL

KLAIRE BOUTROS, 16, prayed at Clear Creek Abbey in Hulbert, Okla., Oct. 7, 2016. Dozens of families have moved to the community to live with other traditional Catholics.

The Benedict Option

Longing to lead more religious lives—and wary of the wider culture—a growing
number of traditional Christians are creating their own small communities.
In Oklahoma, residents around the monastery call

W
BY IAN LOVETT
their home Clear Creek. Not all who came have
stayed: The landscape is littered with the remnants
HEN THE FIRST FEW MONKS ARRIVED IN HULBERT, OKLA., in of a small sawmill, a half-built home insulated with
tires and another whose abandoned straw-and-mud
1999, there wasn’t much around but tough soil, a creek and an walls have been partly devoured by cattle.
old cabin where they slept as they began to build a Benedictine Yet the community is slowly growing, and those
monastery in the Ozark foothills. v Dozens of families from who have sunk roots here say that living near the
California, Texas and Kansas have since followed, drawn by the monastery, which is now home to 50 monks, compen-
sates for the difficulties living so far from a city.
abbey’s traditional Latin Mass—conducted as it was more than 1,000 (Tulsa is an hour’s drive away.)
years ago—and by the desire to live in one of the few communities The monastery serves as the center of commu-
in the U.S. composed almost exclusively of traditional Catholics. nity life. Locals show up for Mass before 7 a.m. and
leave notes and items for each other—say,
There aren’t many jobs nearby. The a carton of milk—on a table in the
nearest bank, grocery store and coffee shop church, a stone building still under con-
are nearly an hour’s drive on country struction. Residents hope to capture the
roads. Yet many residents choosing to live spirit of villages in centuries past, when
near Our Lady of Clear Creek Abbey say it entire towns shared a single faith, a set of
is worth the sacrifice. Christian values and a place of worship.
“Our goal in moving here was to form our “We’ve opted to come away from urban
children’s conscience and intellect in a par- surroundings—and the lives that we knew—
ticular way, without society taking that au- to follow more closely our Lord,” said Maria
thority from us,” said Mark Wheeler, one of Gerber, 61, who moved here in 2008. “We
the first to settle on the outskirts of the know from history, from the Middle Ages,
monastery more than a decade ago. that beauty and spirituality radiates mysti-
The 100 or so people living here are part cally from the abbey. And it’s happening.”
of a burgeoning movement among tradi- Mr. Wheeler and his wife left their home
tional Christians. Feeling besieged by secular outside San Diego in 2004 to settle here
society, they are taking refuge in communi- with their five children. “There was nothing
ties like this one, clustered around churches here,” he said, not even street signs on the
and monasteries, where faith forms the FAMILIES gather outside the Clear Creek Abbey after Mass. dirt roads now named after saints.
backbone of daily life. Similar villages—some The Wheelers have largely separated
Roman Catholic, others Orthodox or Protestant— are considering where they can go to live out their themselves from the world outside of Clear Creek.
have sprung up in Alaska, Maryland, New York and faith more fully. It has been dubbed the “Benedict Like others in the community, they draw inspiration
elsewhere, drawing hundreds of families. Option,” in homage to St. Benedict, who as a young from the Catholic Land Movement of the 1920s,
As the proportion of Americans without any reli- man left the moral decay of ancient Rome to live in which extolled an agrarian life as closer to God.
gious affiliation continues to grow, more Christians the wilderness. Please turn to the next page

INSIDE

MOVING TARGETS MIND & MATTER

Adults see more of the
world than children do,
The right? Not always.
’60s are Alison Gopnik on
coming new experiments.
back! Far C2
out! When
will it all
stop? Joe
Queenan ESSAY BOOKS ESSAY
raises the By meddling in U.S. elections, ‘Europe’s Last Chance’? Yes, obesity is unhealthy, but
alarm. Putin is dusting off an old Or ‘The End of Europe’? Two fat is vital to our health. How to
C11 playbook created by the KGB. views of the continent’s crisis. manage a weighty matter.
C3 C5 C3
ISTOCK (VACCINE)
 For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
C2 | Saturday/Sunday, February 18 - 19, 2017 * *** THE WALL STREET JOURNAL.

REVIEW

Communities Built on Faith

Continued from the prior page
The couple keeps goats and chickens. They attend Mass daily
and home-school their children. They seldom use their TV, except
to check for tornado warnings, but they do use the internet to or-
der supplies, such as cultures for the goat cheese that they sell.
Mr. Wheeler, 52, helped with construction at the monastery.
Last year, they allowed their children—three of whom are old
enough to vote—to listen to the presidential debates on the radio
for the first time, and then to watch the last few on TV.
“The larger populated areas seem to have rejected the Chris-
tian culture and the Christian message,” Mr. Wheeler said. “If I
don’t have to re-immerse myself in that, I’m not going to.”
In many ways, Clear Creek resembles the U.S. of a past era.
Women wear long skirts and cover their heads during Mass—a
practice most Catholics have abandoned since the reforms of Vati-
can II more than a half-century ago. Young men often ask permis-
MIND & MATTER: sion from the fathers of women whom they want to court.
Sean Schmidgall moved to Clear Creek in 2014, after he fin-
ALISON GOPNIK ished college. The community couldn’t be more different from
his hometown of Portland, Ore., where he worried about instill-
ing Christian values in his children.
When Children “There was just too much promiscuity; it’s permeated the
whole society,” said Mr. Schmidgall, 25. “Maybe you teach them
Beat Adults at one thing at home, but you walk down the street and there’s
signs with some provocative image or a woman.”
lies have Netflix and smartphones, though cell reception is spotty.
One group of men socialize watching Ultimate Fighting Champion-
ship bouts on pay-per-view TV.
Andrew Pudewa first heard of Clear Creek after one of his
daughters began corresponding with a young female blogger living
here. Then based in California, he had considered leaving the U.S.
entirely, he said. After a visit to Clear Creek, however, he moved
his family, his textbook publishing business and a number of his
employees here in 2009.
“We wanted our children to grow up in a community of people
that really value family, and value the Catholic faith and tradi-
tion,” said Mr. Pudewa. “That’s getting harder and harder to find.”
The family had hoped to live off the land but found it too diffi-
cult. “It’s hard to raise food,” he said. “It’s everyone’s dream, and
no one is really successful at it.”
They did, however, create a new community hub at their pub-
lishing company. More than a dozen locals work there, saving
them the commute to Tulsa. The company set up a makeshift com-
munity center, where local children—nearly all of whom are home-
schooled—attend group classes. Ultimate Frisbee games, dances
and the occasional wedding have been held on the company’s
grounds.
Life here, Mr. Pudewa said, isn’t “about running away from
something. It’s about running to something.” To “inculcate wis-
dom and virtue in children,” he added, “you surround them with

Seeing the World He fell in love with Angela Snyman shortly after moving to
Clear Creek. For more than a year, they shared dinners at the
goodness and beauty.”
Isolated religious communities are not necessarily a happy
only restaurant in the nearest town, danced in Tulsa and cas- place for all of their members. Samantha Field, 29, grew up in a
A FEW YEARS AGO, in my trated calves together. fundamentalist Christian church in northwestern Florida, where
book “The Philosophical They didn’t kiss until their wedding day. “I told him on one members were discouraged from having contact with anyone out-
Baby,” I speculated that chil- of our first dates that it was a childhood dream of mine to kiss side the congregation.
dren might actually be more the man I would marry for the first time on our wedding day,” Separated from the wider world, she said, the church pastor be-
conscious, or at least more said Ms. Schmidgall, nee Snyman, age 27. Mr. Schmidgall re- came “spiritually abusive.” Women were treated like possessions,
aware of their surroundings, sponded, “You got it, girl.” and gay people were demonized.
than adults. Lots of research shows that The couple, who are expecting their first child, live in a cabin “We didn’t call it the Benedict Option—the phrase we used was
we adults have a narrow “spotlight” of at- that her parents built. They have no TV or internet service and are ‘doctrine of separation,’ ” said Ms. Field, who left that church
tention. We vividly experience the things among several intergenerational families that live near each other while in college. “But it was the same thing. This has been done.”
that we focus on but are remarkably oblivi- and help to care for each other’s children. As more families arrive, Clear Creek is changing. Longtime
ous to everything else. There’s even a term The rise of communities like the one in Clear Creek reflects the residents reminisce about the days before there was local cell
for it: “inattentional blindness.” I thought growing sense among many Christians in the U.S. that Western so- service. At one recent dance, a dress code was imposed that
that children’s consciousness might be ciety is becoming hostile to their beliefs. Alarmed by cultural banned miniskirts. “That didn’t go over so well with some,” Mr.
more like a “lantern,” illuminating every- shifts such as gay marriage, the acceptance of transgender iden- Wheeler said.
thing around it. tity and ever more sexual content in mass media, conservative “Some are trying to keep the culture at a distance, and some
When the book came out, I got many Christians overwhelmingly supported Donald Trump for president. are bringing the culture in—that has led to some friction,” he
fascinating letters about how children see Despite reservations about his personal character, many hoped said. “With the whole Benedict Option, where do you set the pa-
more than adults. A store detective de- that he would stem the tide of social change. rameters? Does that include 10 hours of cable TV a day for your
scribed how he would perch on an upper Rod Dreher, a Christian writer credited with coining the term kids? And the Playboy Channel?”
balcony surveying the shop floor. The “Benedict Option,” has a book on the movement coming out next Last May, residents hosted a conference on building Christian
grown-ups, including the shoplifters, were month. In an interview, he communities. They are
so focused on what they were doing that said that conservatives planning another one for
they never noticed him. But the little chil- were “deluding them- this year. Mike Lawless,
dren, trailing behind their oblivious par- selves if they believed who moved here in 2005
ents, would glance up and wave. that Mr. Trump could turn and now has five grand-
Of course, anecdotes and impressions back the cultural forces children in the area, has
aren’t scientific proof. But a new paper in sending some Christians hopes of opening a gen-
press in the journal Psychological Science into the woods.” eral store, which would
suggests that the store detective and I just “We’re living in a post- save people trips to Tahl-
might have been right. Christian world,” Mr. equah, a nearby town.
One of the most dramatic examples of Dreher said. “There needs “And maybe a beer gar-
the adult spotlight is “change blindness.” to be some conscious sep- den, where we could host
You can show people a picture, interrupt it aration from the main- events for maybe 100 peo-
with a blank screen and then show people stream to be able to hold ple,” said Mr. Lawless, 56.
the same picture with a change in the on to the Christian faith.” Father Abbot Philip An-
background. Even when you’re looking Throughout American derson, the head of the
hard for the change, it’s strikingly difficult history, members of mi- monastery, has been in-
to see, although once someone points it nority religious groups— strumental in bringing
out, it seems obvious. You can see the Mormons, Orthodox Jews, families to the area. Early
same thing outside the lab. Movie directors the Amish—have at times on, the monastery sold off
have to worry about “continuity” problems isolated themselves to try A COMMUNITY DANCE in Hulbert, Oct. 8, 2016. more than 100 acres of
in their films because it is so hard for to preserve values and land to families seeking to
them to notice when something in the traditions. build homes nearby. Pro-
background has changed between takes. Many Christians, however, resist the idea of such stark separa- spective newcomers often stay at the abbey’s guesthouse.
To study this problem, Daniel Plebanek tion, seeing it as an abandonment of their religious mission. “We He has called the growing community a “hundred-year proj-
and Vladimir Sloutsky at Ohio State Univer- have a mandate to spread the gospel,” said Adam Janke, vice pres- ect,” which could one day resemble the villages that grew up
sity tested how much children and adults ident of St. Paul Street Evangelization, a Catholic group based in around monasteries in medieval Europe. “It’s not the Middle Ages
notice about objects and how good they are Indiana. “If we isolate ourselves to the extent that we’re no longer anymore,” Fr. Abbot Anderson said. “But there is some analogy
at detecting changes. The experimenters fulfilling that missionary mandate, that’s a problem.” between the end of the Roman Empire and a new civilization
showed a series of images of green and red Those who have opted for small Christian communities say that starting out around monasteries.”
shapes to 34 the point is not to retreat into the wilderness but to provide a Clear Creek’s newest residents, Sam and Laura Guzman, moved
children, age 4 place to build a stronger faith for themselves and their families. from Milwaukee last fall. When they arrived in September, Jere-
Expand your and 5, and 35 Marc Dunaway, whose family helped to found the St. John Or- miah Harrison, 33, and several other men helped the family un-
mind by adults. The re-
searchers asked
thodox Cathedral in Eagle River, Alaska, is now the archpriest
there. Some 50 families are based near the church, and he said
pack their moving truck.
The warmth of the other residents was exactly what had in-
taking a the participants that one of their goals is to restore some of the social fabric of spired his move, Mr. Guzman said: “One of the problems with the
walk with a to pay atten- earlier eras. modern world is you’re so isolated. We wanted for our family a
tion to the red “People used to know their neighbors. After World War II, a lot life more simple and community-oriented.”
4-year-old. shapes and to of that normal human community disintegrated,” Father Dunaway Mr. Harrison said that he has become less “anti-city” since
ignore the said. “Our goal was to return to the kind of community that ex- moving to Clear Creek from Texas a few years ago. For one, thing,
green ones. In isted for centuries.” he said, he bears no ill will toward gay or transgender people
the second part The families in Clear Creek see themselves as fundamentally pushing for their rights.
of the experiment, they showed another set different from breakaway religious groups like the Amish. There Yet in America, he said, there should be “a space where we can
of images of red and green shapes to partici- is no ban on technology or suspicion of outsiders. live our values and build those values into our lives and into our
pants and asked: Had the shapes remained Young boys play soccer on teams in a nearby town. Some fami- families.”
the same or were they different?
Adults were better than children at notic-
ing when the red shapes had changed. That
isn’t surprising: Adults are better at focus-
ing their attention and learning as a result.
But the children beat the adults when it
came to the green shapes. They had learned
more about the unattended objects than the
adults and noticed when the green shapes
changed. In other words, the adults only
seemed to learn about the object in their at-
tentional spotlight, but the children learned
about the background too.
We often say that young children are bad
at paying attention. But what we really
mean is that they’re bad at not paying at-
PHOTOGRAPHS BY MAX WHITTAKER/PRIME FOR THE WALL STREET JOURNAL

tention, that they don’t screen out the world

as grown-ups do. Children learn as much as
they can about the world around them, even
if it means that they get distracted by the
distant airplane in the sky or the speck of
paper on the floor when you’re trying to get
them out the door to preschool.
Grown-ups instead focus and act effec-
tively and swiftly, even if it means ignoring
their surroundings. Children explore, adults
exploit. There is a moral here for adults too.
We are often so focused on our immediate
goals that we miss unexpected develop-
ments and opportunities. Sometimes by fo-
cusing less, we can actually see more.
TOMASZ WALENTA

So if you want to expand your conscious-

ness, you can try psychedelic drugs, mysti-
cism or meditation. Or you can just go for a
walk with a 4-year-old. MONKS LED a procession before Mass at the Clear Creek Abbey. Prospective newcomers to the community often stay at the abbey’s guesthouse.
 For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
THE WALL STREET JOURNAL.
HARRY HAMPEL/ULLSTEIN BILD/GETTY IMAGES
WEST GERMANS protest the installation of nuclear missiles, Berlin, Oct. 15, 1983. The KGB tried
Moscow Dusts Off
The KGB Playbook
Covert operations to meddle
in Western elections date
back to the Cold War
BY ANDREW WEISS
LAST MONTH, former CIA Director Michael
Hayden said that, during the 2016 election, the
Kremlin had pulled off a “covert influence
campaign” that “was probably the most suc-
cessful in recorded history.” It has become ac-
cepted wisdom that Russia’s interference in
the presidential campaign represents a funda-
mentally new sort of intrusion into a modern
democracy’s inner workings.
But the Kremlin’s efforts—designed to help
elect Donald Trump, according to the consensus
view of the U.S. intelligence community—aren’t
so new. In fact, they are a revival of Soviet co-
vert behavior that dates back to the Cold War.
Recent Russian meddling has indeed involved
some innovative techniques, including the re-
lease of troves of information collected clandes-
tinely and the penetration of the Democratic Na-
tional Committee’s email servers. The Kremlin
has found a target-rich environment in a Face-
book-dominated world where media narratives
are easy to manipulate and public trust in tradi-
tional media is hitting rock bottom.
As the U.S. director of national intelligence
explained in an unclassified report, these opera-
LET’S STOP FREAKING OUT ABOUT BODY FAT
BY SYLVIA TARA
THE HOLIDAYS are long over, but many
Americans still have something to remember
them by: extra pounds of fat. Our collective
effort to fight the bulge makes the first few
months of the new year the peak sales period
for the U.S. dieting industry. Americans
spend a fortune each year trying to get rid of
fat, but the flab often creeps back, despite
our best efforts. It seems as if our fat has a
mind of its own—which, it turns out, isn’t as
far-fetched as it sounds.
We usually think of fat as unhealthy excess
storage to be gotten rid of at all costs, but re-
searchers have reached a different conclusion:
Fat is actually a vital organ that releases es-
sential hormones and sends crucial messages
to our brains. And because fat is so important,
our bodies work hard to protect it. Instead of
simply battling fat, we need to focus on how to
maintain a healthy level of it.
Jeffrey Friedman, a molecular biologist at
Rockefeller University, was among the first to
discover that there was more to fat than just
storing calories. In the 1980s, he was research-
ing mice that ate uncontrollably. After nine
years, Dr. Friedman discovered that fat pro-
duces a hormone that he named leptin (from
the Greek leptos, or thin), which is released
into the bloodstream and binds with areas of
our brain responsible for appetite. His lab’s
obese mice had a genetic defect in their fat
that prevented them from making functional
leptin and getting the signal to stop eating.
Humans with a similar genetic defect can
eventually eat themselves to death.
Fat’s connection with leptin poses a di-
lemma: When we lose fat, we also have de-
* * * *
REVIEW
covertly to manipulate the European peace movement.
tions during the U.S. election “followed a long-
standing Russian messaging strategy that blends
covert intelligence operations—such as cyber
activity—with overt efforts by Russian Govern-
ment agencies, state-funded media, third-party
intermediaries, and paid social media users.”
But the overall campaign should be familiar
to any student of history. Similar efforts at sub-
version were rampant during the Cold War. The
Soviets and their partners, including East Ger-
many’s Stasi secret police, un-
derstood that such operations
could effectively exploit the The Soviets
openness of Western democra-
cies.
tried to spread
In the early 1980s, for in- the slogan
stance, the KGB made a ma-
jor covert push to stop the
‘Reagan Means
deployment of U.S. interme- War!’
diate-range nuclear missiles
in Western Europe. The So-
viets did everything they
could to encourage and manipulate the grass-
roots European peace movement that had
risen up in opposition to the new weapons.
According to declassified CIA reports, Mos-
cow used a web of front groups, secret pay-
ments to activists and articles placed in the
press. The Russians also carefully conveyed pro-
paganda themes to sympathetic media outlets,
peddled disinformation and produced damaging
forgeries of official U.S. and NATO documents.
Resisting this ambitious covert campaign by
ISTOCK
INSTEAD of battling fat, scientists now say, we should try to maintain a healthy level of it.
creased levels of leptin. As a result, we are
hungrier than before weight loss. Leptin also
affects our muscles and thyroid hormones, and
reduced amounts of it slow down our metabo-
lism. These combined effects of decreased lev-
els of leptin drive us to regain weight.
We now know that fat also can affect brain
size. People who are genetically leptin-defi-
cient have smaller brain volume in some areas,
as do patients who are malnourished because
of anorexia. Leptin also enables wounds to
heal faster and strengthens our immune sys-
tem by activating T-cells.
And leptin isn’t the only crucial hormone
produced by our fat. It also manufactures adi-
ponectin, a hormone that keeps our blood clear
Saturday/Sunday, February 18 - 19, 2017 | C3
using Soviet propaganda tools and
forged documents to hurt U.S. inter-
ests. In the mid-1980s, the Soviets
circulated a fake National Security
Council directive purporting to
show the Reagan administration’s
hope to develop a nuclear first-
strike capability. In the pre-internet
age, such disinformation could cir-
culate in many places for years.
According to State Department
veterans and intelligence historians,
Soviet fake-news specialists also con-
cocted reports that Pentagon bio-
weapons scientists had created HIV,
that wealthy Americans were se-
cretly importing children from Latin
America for use in organ transplants
and that the CIA was responsible for
the 1981 assassination attempt on
Pope John Paul II.
Such tactics echo today’s head-
lines. In France, Emmanuel Macron,
who hopes to defeat Kremlin favorite
Marine Le Pen in May’s presidential
election, has endured a whispering
campaign claiming that he is secretly
gay, fanned in part by online trolls
and outlets close to Ms. Le Pen’s xe-
nophobic National Front. The “story”
went viral this month after it ran on
Sputnik, a Kremlin-controlled news
agency, which asserted that Mr. Ma-
cron has a “very wealthy gay lobby
behind him.”
In the 1960s and ’70s, the KGB
spread similar rumors about two of
the Soviet Union’s legendary neme-
ses, FBI chief J. Edgar Hoover and
Sen. Henry “Scoop” Jackson. As
Mitrokhin, the KGB defector, later
the KGB galvanized the highest levels of the U.S. wrote, the KGB tried to spread rumors in the
government. In January 1983, CIA Director Wil- U.S. media that Hoover had promoted “homo-
liam Casey sent a secret memo to President sexuals from whom he expected sexual favors.”
Ronald Reagan and his top advisers laying out In a 1976 operation against Jackson, the KGB
his agency’s findings. Top Reagan officials de- forged a memo in which Hoover “reported” in
cided the revelations were too explosive to keep 1940 that the senator was gay and sent it to
to themselves. “We later published it and circu- newspapers and Jimmy Carter’s presidential
lated it widely within the government and to the campaign.
allies, and, finally, provided an unclassified ver- With elections also coming up this year in
sion for public use,” wrote Robert Gates, then Germany, the Netherlands and perhaps Italy, the
the head of the CIA’s analytical branch, in his Kremlin’s willingness to use its KGB-style tool
1996 memoir “From the Shadows.” kit has put intelligence services across the conti-
The KGB and its allied intelligence services nent on alert. In Germany, for instance, a high-
also tried to tilt elections in the U.S., Europe and profile January 2016 fake-news story about an
the Third World. At the height of the debate attempted sexual assault on a Russian-German
over the U.S. missile deployment in Europe, the teenager by Middle Eastern refugees, which was
Soviets organized what Chancellor Helmut also spread by Russian Foreign Minister Sergei
Kohl’s government called a “massive propa- Lavrov, stoked popular anger toward Chancellor
ganda campaign of interfer- Angela Merkel—probably Mr. Putin’s most
ence in West German affairs” prominent foreign foe.
to force his ouster in the The Kremlin is conspicuously unembarrassed
country’s March 1983 election. about its handiwork, as seen in Mr. Putin’s
But the Soviet effort back- smirking, I-know-that-you-know-that-I’m-lying
fired. The crude Soviet “press handling of questions about the hacking of the
commentaries” and staged DNC and Clinton campaign emails. “Listen, does
“workers’ rallies” horrified it even matter who hacked this data?” he said
Kohl’s party and even the op- last September. “The important thing is the con-
position Social Democrats. tent that was given to the public.”
The heavy-handedness of The West, in other words, finds itself on
similar campaigns in the 1970s an all-too-familiar playing field with the Rus-
and ’80s often undermined their effectiveness. sians. In the Reagan era, a major enterprise
As the KGB defector Vasili Mitrokhin explained within the U.S. government was dedicated to
in 1999, the KGB’s outposts in the U.S. were or- thwarting Moscow’s propaganda and influ-
dered in 1983 “to acquire contacts on the staff ence operations, staffed by the State Depart-
of all possible presidential candidates and in ment, the CIA, the U.S. Information Agency
both party headquarters…Residencies around and others. It is past time we remembered
the world were ordered to popularize the slogan how to play this game ourselves.
‘Reagan Means War!’ ” The operations were a
dud, and Reagan cruised to reelection in 1984.
Other KGB efforts in Africa, Asia, the Middle Mr. Weiss is vice president for studies at the
East and Latin America were more successful, Carnegie Endowment.
cise promotes the release of adiponectin. This is
why sumo wrestlers are both fat and fit (at least
until they retire): They exercise around seven
hours a day, which helps keep their visceral fat
under control even as they pile on the subcuta-
neous fat that they need to compete.
The new science of fat suggests some
health pointers. First, we should appreciate
our fat. Our culture is obsessed with shed-
ding flab, as any sports or fashion magazine
cover will tell you, but normal amounts help
to keep us healthy.
Second, if you’re going to worry, focus on vis-
ceral fat, which is associated with disease. For
those of us who aren’t sumo wrestlers, jogging
20 miles a week or doing intensive interval
training three times a week has been linked with
a reduction in visceral fat. Intermittent fasting—
prolonging the overnight gap between meals to
14 hours or more—also can help.
Finally, if you are above the average fat
mass range of 25-30% for women and 18-24%
for men, and you want to maintain your weight
loss, it may take more effort than you expect.
of harmful toxins and fats. Fat can alter our appetite and metabolism to
The benevolent type of fat that is the pri- drive us to regain weight, an effect that can
mary producer of leptin and adiponectin is last for years. So real weight loss requires a
subcutaneous, found directly under our skin long-term effort. By better understanding how
in places such as our abdomens, thighs, but- fat works, what makes it accumulate (which
tocks and arms. This should be distinguished isn’t just sloth and gluttony) and selecting a
from visceral fat, which is stored under the diet that will work over the years, we are more
stomach wall, nestled against our internal or- likely to succeed at keeping the pounds off.
gans. The latter is the “bad” fat that we hear And as you pick your personal weight targets,
so much about. It can become inflamed and remember: Obesity is unhealthy, but too little fat
lead to diabetes and heart disease. isn’t good for you either.
But “good” fat can fight “bad” fat. By making
adiponectin, subcutaneous fat guides circulating Dr. Tara is the author of “The Secret Life of
fats in our blood out of our veins and into the Fat: The Science Behind the Body’s Least Un-
subcutaneous fat tissues where they belong. The derstood Organ and What It Means for You”
hormone also reduces visceral fat. Luckily, exer- (Norton).
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
C4 | Saturday/Sunday, February 18 - 19, 2017 * *** THE WALL STREET JOURNAL.

REVIEW
R&D:DANIEL AKST WORK IN PROGRESS:
The Wisdom HANNAH BLOCH
Of Wiser An Advocate for
Crowds Young Athletes
BY NOW, everyone knows about
the wisdom of crowds, but it IN THE 1980S, a young swimmer named An-
has its limitations. If you need nabelle Cripps represented Great Britain at
to diagnose a potential brain tu- the Los Angeles and Seoul Olympics and won
mor, for example, you’re better silver in the 1986 Commonwealth Games. A
off with a lone neurosurgeon dual British and U.S. citizen, she spent her
than 1,000 lay opinions. childhood in Wisconsin, where she excelled in
Now researchers at MIT and swimming from an early age, and joined Brit-
Princeton have found a way to ain’s national team as a young teenager, spe-
tap into the insight of the ex- cializing in freestyle and butterfly. By 1989,
pert minority within a crowd—a the year of her final major competition, she
minority whose views would was 21 and had amassed more than 40 re-
otherwise be swamped in a sim- cords.
ple majority vote or poll. The She also says that she was sexually abused
researchers’ simple new tech- for years by her coach. Although she didn’t
nique leverages the ignorance of press charges, in 1995 her coach was con-
crowds as well as their wisdom. victed in the U.K. of crimes including rape and
Their approach works by ask- indecent assault against more than 10 young
ing the question to which you female swimmers and was sentenced to 17
need an answer, then adding a years in prison. (He died in 2008.)
second question that is some She struggled for years with alcohol, then
version of: In percentages, how became sober at age 30. In 2006, she chose a
do you think most people will new name for herself: Katherine Starr. In Cali-
answer? If the actual minority fornia, where she’d settled, she began work as
EVERETT COLLECTION

percentage exceeds the pre- a swimming coach. From

dicted minority percentage, the that vantage point, she
minority answer is probably the recognized that young
correct one. And the larger the athletes were still vul- A former
gap between prediction and re- nerable. “I knew that dy- Olympic
ERROL FLYNN takes aim in the 1938 film ‘The Adventures of Robin Hood.’
ality, the more confidence we
can have in that minority re-
namic needed to be
changed,” she says. In
swimmer
sponse.
WORD ON THE STREET: BEN ZIMMER 2011, she decided to de- hopes to
In a recent scientific article,
the researchers used this exam-
vote herself full time to
protecting athletes’ wel-
prevent
ple: You want to know whether
Philadelphia is the capital of
A New Spin on ‘In Like Flynn’ fare. Her aim, she says,
is to offer the sort of
abuse.
Pennsylvania, so you ask a WHEN MIKE FLYNN suddenly resigned on see a show at the New York World’s Fair. help that “would have
group of volunteers. Tallying the Monday night as President Donald Trump’s “Your name is Flynn…you’re in,” the official changed my experience.”
results, you find that 66% said national security adviser, many headline told the group. The nonprofit that Ms. Starr founded,
yes while 33% said no. (The wis- writers couldn’t resist announcing the news Tamony also found variations in local Safe4Athletes, works to prevent misconduct of
dom of crowds doesn’t seem to by putting a twist on an old expression. USA newspapers. “Answer these questions cor- all kinds—including physical and sexual abuse,
encompass Harrisburg.) Today, National Journal and Roll Call all rectly and your name is Flynn, meaning hazing, bullying and harassment—in the world
But you also ask participants went with “Out Like Flynn.” you’re in,” wrote a columnist for the San of youth sports. Ms. Starr has served as an ex-
to predict how the group will “Out Like Flynn” is, of course, a play on Francisco Examiner in February 1942. The pert witness in abuse cases. She educates
answer, and you get a forecast “in like Flynn,” a slangy idiom for being in a following year, the San Francisco Call-Bulle- coaches, parents and children and responds to
of 77% yes and 23% no. Since position of assured success—quite the oppo- tin reported that “I’m in like Flynn” could requests for information and help from the
the actual “no” vote exceeded site of what Mr. Flynn experienced this be shortened to “I’m Flynn.” Likewise, the U.S. and abroad, including from India, South
the predicted “no” vote, we week. But where did “in like Flynn” come rhyming “I’m out like Stout” was abbrevi- Africa and Australia. The organization’s web-
should conclude that “no” is the from? Who was Flynn, and why was he in? ated as “I’m Stout.” site receives, on average, some 2,000 visitors
likelier answer. The 10-point dif- Many theories have been proposed since Half a century later, 1990s slang-slingers a month and one legal query a week, she says.
ferential suggests that the likeli- the phrase was first popularized in the would make a similar move, changing “I’m She notes that there is “so much fear” of re-
hood is fairly strong. 1940s. For much of that time, the leading out” to “I’m Audi 5000,” after the name of taliation for reporting abuse.
In several experiments, this contender has been the swashbuckling Aus- the car, or simply “I’m Audi” or “I’m 5000.” The problem remains pervasive. An India-
technique turned out to signifi- tralian-born actor Errol Flynn. A 1946 While the “in/Flynn” rhyme was percolat- napolis Star investigation in December found
cantly enhance the wisdom of roundup of Air Force slang in the journal ing in various guises, Errol Flynn got in that at least 368 gymnasts alleged that they
crowds, reducing errors by more American Speech defined the phrase thus: some trouble with the law. He was accused had suffered some kind of sexual abuse over
than 20% compared with either “Everything is O.K. In other by two underage women of the past 20 years at the gyms where they
a simple majority vote or two words, the pilot is having no statutory rape, and the trial trained. “It’s in every single sport,” Ms. Starr
different types of confidence- more trouble than Errol Flynn From a in early 1943 drew world- says, whether it’s abuse by a coach or hazing
weighted votes. The technique has in his cinematic feats.” “In movie star wide attention—and also pop- by fellow teammates, and both male and fe-
works, says Drazen Prelec, one like Flynn” has often been ularized “in like Flynn,” espe- male athletes are vulnerable.
of the MIT scientists, because linked to the actor’s off-screen to a sudden cially among soldiers and Safe4Athletes, based in Santa Monica, Ca-
people with more knowledge success with seducing women. resignation. airmen serving in World War lif., and supported by foundation funding and
than most recognize the likely Another proposed source of II, who used it as sly slang for private donations, provides counseling refer-
position of the majority, and the expression is Edward J. picking up girls. In his book rals and resources, including lists of coaches
both groups join in predicting a Flynn, a Democratic political “Hollywood Babylon,” first who have been banned for misconduct by na-
low vote in favor of the minority boss in New York’s Bronx borough in the published in the U.S. in 1965, Kenneth Anger tional and other sports organizations. The
answer. When the minority vote 1930s and ’40s. In his “Dictionary of Catch wrote, “As the trial progressed the expres- group, whose work has been praised by Olym-
for the right answer exceeds Phrases,” the British slang lexicographer sion ‘in like Flynn’ became a G.I. code word, pic gold medalists including gymnast Domin-
that prediction, it gives us what Eric Partridge quoted a 1978 letter from an which amused more than annoyed its name- ique Moceanu and swimmer Tiffany Cohen, of-
the researchers call the “sur- American correspondent, Robert Claiborne. sake.” fers a 65-page “model athlete welfare policy”
prisingly popular” answer, Since Boss Flynn’s machine “exercised abso- Indeed, it is said that Errol Flynn liked for clubs and gyms to adopt, with guidelines
which is more likely to be cor- lute political control” in the Bronx, Clai- the expression so much that he wanted to and best practices on how to protect athletes.
rect. borne wrote, “the candidates he backed title his autobiography “In Like Me.” In- Recommendations include ensuring that a
Besides accessing minority were automatically ‘in’; and he himself per- stead, the publisher picked “My Wicked, coach doesn’t travel with a child alone, setting
wisdom, the technique also manently so.” Wicked Ways.” In it, Flynn recalled that his clear rules on locker-room supervision and
helps overcome a safe-bet bias Further digging, however, has revealed acquittal on the charges against him designating one female and one male volun-
in groups. Philadelphia, for ex- that “in like Flynn” probably originated not strengthened his appeal to fans, who de- teer parent to be athletes’ advocates and to
ample, is Pennsylvania’s largest as an explicit reference to a prominent per- lighted in sharing the “in like Flynn” phrase. hear complaints.
city, and not a bad guess if you son with that name but simply as a bit of “A new legend was born, and new terms Preventing abuse also means that “you’ve
don’t know the correct answer. humorous rhyming slang. In 1999, the word went into the national idiom,” Flynn wrote. got to protect the whole environment,” Ms.
The “surprisingly popular” researcher Barry Popik brought to light The memoir was published shortly after Starr says. That includes at home. While the
technique isn’t foolproof. “I some evidence collected in the early 1940s Flynn’s sudden death from a heart attack in focus in high-profile abuse cases often is on
would be more reluctant to by Peter Tamony, a San Francisco-based ety- 1959, when his freewheeling lifestyle caught institutions and perpetrators, parents play a
overturn a very strong majority mologist. Going through Tamony’s personal up with him. Even then, headline writers key role, too, and “need to be vigilant and put
(e.g., 90%) than a thin one (e.g., archive, Mr. Popik came across a note from couldn’t help themselves. For a story about in tools to help a young sports environment,”
55%),” Dr. Prelec notes. None- Tamony’s sister Kathleen dated July 3, 1940, his funeral services, a headline in Variety she says. “They need to stand up for these
theless, he says, the technique describing an official letting in a group to read, “Out-Like-Flynn-With-a-Grin.” kids.”
should work well enough in the
real world in a back-of-the-en-

Tapping the PHOTO OF THE WEEK

insights of an Going In
expert minority. Circles
Ethnic Miao
velope sort of way when some
people—one
collective prediction or judg- of China’s 55
ment is required. Simply ask minority
participants to vote on the
question at hand and ask them groups—
to predict the overall vote. If performed a
the minority position is larger
than predicted, the minority
dance
probably has the right answer— Thursday
especially if the gap is large and
the majority vote isn’t over-
during a local
whelming. festival in
“The method gives more
weight to the opinion of people
Kaili, a city in
who believe themselves to be in southern
the minority,” says Dr. Prelec, China’s Gui-
thereby empowering those with
more specific knowledge. “Infor- zhou province.
mation,” he observes, “is often
very unevenly distributed.”
“A solution to the single-ques-
Answers
tion crowd wisdom problem,”
to the News Quiz
on page C13:
Drazen Prelec, H. Sebastian Se-
ung and John McCoy, Nature 1.B, 2.D, 3.C, 4.A,
(Jan. 25) 5.D, 6.B, 7.C, 8.C, 9.A
REUTERS
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To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
DOUGHBOYS OVER THE TOP C6 | THE HEROISM OF OLD AGE C8 | DEATH OF THE ALL-AMERICAN TOWN C9 | BEST SELLERS C10
© 2017 Dow Jones & Company. All Rights Reserved.
The Story of a Famous Cell Line
An aborted fetus from Sweden, used without the mother’s consent, spurred the biotech gold rush
The Vaccine Race
By Meredith Wadman
Viking, 436 pages, $30
BY JOHN J. ROSS
IN THE SUMMER OF 1968, the micro-
biologist Leonard Hayflick loaded a
bomb-shaped canister into the back of
his secondhand green Buick LeSabre,
piled his kids in the car, and drove
from the Philadelphia suburbs to his
new home on the campus of Stanford
University. The canister was filled with
375 tiny glass ampules of frozen hu-
man cells, suspended in supercooled
liquid nitrogen. Dr. Hayflick’s decision
to take them would wreck his aca-
demic career and bring him “under the
damning cloud of a government inves-
tigation announced on page one of the
New York Times,” Meredith Wadman
writes, in her deeply researched book
“The Vaccine Race.”
Despite the importance of human
diploid cell cultures to the history of
science, they might seem to be the
least promising of subjects for the ca-
sual reader. But Dr. Wadman, a physi-
cian who works as a reporter for Sci-
ence magazine, puts them at the
center of a riveting tale of scientific
GETTY IMAGES
infighting, clashing personalities,
sketchy ethics, and the transforma-
tion of cell biology from a sleepy sci-
entific backwater to a high-stakes
arena where vast fortunes are made.
The frozen cells in Dr. Hayflick’s
Buick represented most of the world’s
supply of WI-38, a cell line that he
had created in 1962 at the Wistar In-
stitute at the University of Pennsylva-
nia. Just a few years earlier, the
Wistar had been a moribund relic of
19th-century American medicine,
when medical research was the realm
of eccentric gentleman amateurs. As
Dr. Wadman writes, the institute was
a “strange mix of faded elegance and
creepiness.” It had been founded by
Isaac Wistar, a Civil War brigadier
general whose pickled brain and
wounded arm were kept on display
along with the bladder stones of a
chief justice of the United States, the
70-foot-long skeleton of a finback
whale and a bevy of malformed fe-
tuses. In the early 1950s, the Wistar’s
laboratories were dangerously anti-
quated, its electricity kept shorting
out, and its running water was an
alarming shade of beige. It was only
kept afloat financially by the dubious
Europe’s Last Chance
By Guy Verhofstadt
Basic, 294 pages, $27.99
The End of Europe
By James Kirchick
Yale, 273 pages, $27.50
BY JAMES TRAUB
CONSIDER TWO continents, North
and South America. Both were colo-
nized by European powers; both re-
belled. (Let’s leave aside Canada,
which was much too nice.) In the
north, the colonies rebelled together
and formed a single federal republic.
In the south, each colony declared it-
self a republic, and after winning in-
dependence each became a separate
country.
Now consider Europe, the home of
both the colonial empire and of the
nation-state. In the aftermath of two
calamitous world wars, many Europe-
ans concluded that the model of pow-
erful and ambitious nations living
side-by-side had become a suicide
pact, and thus sought to confederate
into a European entity. The new
model, however, stopped halfway, and
today’s European Union is an experi-
ment in mingled sovereignty that lies
exactly between the North and South
American models.
Until quite recently, this pact
seemed to allow Europeans to enjoy
the best of both nationalism and con-
tinental federalism. Now, quite sud-
denly, it does not. Europe has been
unable to deal with the refugee crisis,
the threat from Russia, the near-bank-
ruptcy of Greece or global economic
competition. The British have voted to
* * * *
BOOKS
IMMUNIZATION CAMPAIGN An Afghan child being vaccinated in Kabul in 2015
fertility clinic its director had been
running on the side.
Hilary Koprowski took over as the
Wistar’s director in 1957. Koprowski
was a star in the world of virology
who was vying with Albert Sabin to
create the first live polio vaccine. He
was suave and urbane, a Polish refu-
gee who hobnobbed with the likes of
T.S. Eliot and had trained as a classi-
cal pianist before turning to medicine.
Koprowski was able, ambitious and
conniving, and he set about modern-
izing the Wistar with ruthless effi-
ciency. He got the electricity and
plumbing up to code, tossed out the
whale bones, exiled the floating brain
of Isaac Wistar to a dusty basement
storeroom, and recruited a cadre of
cutting-edge scientists to run the ren-
ovated laboratories. According to Dr.
Wadman, Koprowski was “an autocrat
who didn’t micromanage his hires,
who left them to do their creative
best, protecting them from adminis-
trative hassles and money worries
Continental Drift
leave the union; others may follow.
Virulent nationalism is on the wing: A
growing number of European voters
have turned against the liberal order
of which the EU once seemed to be
the supreme embodiment. The conti-
nent has reached a fateful crossroads:
If it cannot move forwards towards a
true federation, it may ultimately dis-
solve back into the national and sec-
tarian morass it long was.
This, in any case, is the stark hy-
pothesis of “Europe’s Last Chance:
Why the European States Must Form
a More Perfect Union” by Guy
Verhofstadt, who was prime
minister of Belgium from 1999
to 2008 and is now the EU’s
lead negotiator with Britain
over Brexit. The last chance in
When the EU
won the Nobel
Peace Prize in 2012,
three different
officials showed up
in Oslo to claim it.
question is the opportunity to
form a “United States of Eu-
rope,” an entity capable of act-
ing collectively in economic,
military and foreign policy
matters, and thus taking its place
alongside the world’s other continen-
tal forces—the U.S., China, Russia. One
of the hidden charms of this book, at
least for the American reader, is that
Mr. Verhofstadt implores Europe to
emulate the U.S. in practically every-
thing, right down to our system of un-
THE WALL STREET JOURNAL.
while . . . alternating benignity and
charm with storms of temper and de-
viousness.” Koprowski was also a
committed epicurean who somehow
secured a liquor license for the insti-
tute, making it a wet island on a dry
campus. One of his former scientists
In the 1950s, academic medical centers performed
legal abortions for the daughters of the wealthy—
usually justified on grounds of psychological distress.
recalled that “the Wistar operated in
Philadelphia like a small independent
European municipality. I think Hilary
[Koprowski] saw himself as Cosimo
de’ Medici.”
One of Koprowski’s hires was Leon-
ard Hayflick. In contrast to the mer-
curial Koprowski, whose father had
been a well-to-do Warsaw industrial-
ist, Dr. Hayflick was the stubborn and
employment insurance. I kept think-
ing: Europe envies us? Things really
must be bad.
“Europe’s Last Chance,” which
consolidates views Mr. Verhofstadt
has long expressed in newspaper col-
umns and Tweets, ranges across Eu-
rope’s failures on military spending
and posture, intelligence sharing, fis-
cal policy and taxation, innovation
and growth, Greece, Russia and
Syria—the whole woeful nine yards.
He offers a bracing corrective to all
the bilge being pumped out by the Br-
exiteers and their ilk who make the
EU out to be an all-devouring Levia-
than. “The European budget,” he ob-
serves, “is smaller than the national
budget of Greece or Belgium.” Exactly
how much Eurofascism can you gen-
erate on that kind of spare change?
Not much, he demonstrates. Europe
Saturday/Sunday, February 18 - 19, 2017 | C5
methodical son of an insolvent den-
ture maker from Philadelphia. Unable
to pay his way at the University of
Pennsylvania, he joined the Army and
used the funding he got from the GI
Bill after his discharge to pay his tu-
ition and bail out his bankrupt father.
Dr. Hayflick was hired at the
Wistar for his expertise in tissue cul-
ture, or the art of growing animal
cells in the laboratory. While getting
his Ph.D., he used this technique to
study the peculiar organisms known
as mycoplasmas, which he later dis-
covered were the major cause of
walking pneumonia. At the Wistar, Dr.
Hayflick planned to use tissue cul-
has more than 100 national telecom
companies; and since customers must
pay roaming charges when they go
abroad, “a third of European travelers
switch off their phones if they travel
to another EU country.” Europe has
31 codes for air traffic management.
When the EU won the Nobel Peace
Prize in 2012, three different officials
showed up in Oslo to claim it.
It did not have to be this way, Mr.
Verhofstadt believes. In March 1953,
with the continent still in ruins, the
foreign ministers of Belgium, France,
Italy, Luxembourg, the Netherlands
and West Germany agreed upon a
constitution that would have created
a true European state. But the French
National Assembly voted it down ow-
ing to fears the charter would rob its
army of independence, and that was
that. A few years later, these same
tures to see whether viruses caused
cancer in people, but he got side-
tracked when he realized that some-
thing odd was happening to his hu-
man cell lines: They were aging.
After 50 cell divisions, the cells
degenerated and refused to divide
further. According to the dogma of
the time, this shouldn’t have hap-
pened. Cells grown outside of bodies
were believed to be immortal.
Through an elegant series of experi-
ments, Dr. Hayflick proved that this
belief was plain wrong. Prior studies
claiming cellular immortality had ei-
ther used cancer cells, which are in-
deed immortal, or had blundered by
adding serum containing young cells
to old tissue cultures. He had stum-
bled onto an iron law of aging, now
known as the Hayflick limit, which is
thought to be due to the slow erosion
of telomeres, the protective tips on
the ends of chromosomes, over the
course of our lifetimes.
Please turn to page C6
nations had the foresight to establish
a common market, which expanded in
the 1970s and ’80s to include Den-
mark, Ireland, the U.K., Greece, Portu-
gal and Spain and then more. But the
process stalled. Why? Because, Mr.
Verhofstadt says, today’s leaders are
cowards. They’ve failed to stand up to
Russia, failed to assert themselves
forcefully in Syria, failed to take in
desperate refugees. When it comes to
the EU itself, he writes, “our national
political elites are overcome by fear:
fear of surrendering power, existen-
tial angst over relinquishing
sovereignty.” One of the nice
things about being an ex-
prime minister is that you can
castigate current office-hold-
ers for giving way to the polit-
ical calculations that politi-
cians inevitably make.
Mr. Verhofstadt is genuinely
impassioned about the poison
of nationalism, before which
European leaders, he says,
have “abdicated.” But it’s re-
ductive to see things merely as
a matter of political will. Some
of Europe’s most indomitable
leaders, including Charles de
Gaulle and Margaret Thatcher,
opposed deeper European inte-
gration. For them, refusing to
GETTY IMAGES
surrender national sovereignty
was a matter not of “existen-
tial angst” but of fundamental
principle. The pull of tribal
identity is all the more powerful to-
day, as the Brexit vote showed all too
clearly. Before the fierce gale of glob-
alization, people seek refuge in iden-
tity. “Europe” has proved to be a
flimsy shelter.
“Europe’s Last Chance” is a com-
Please turn to page C7
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
C6 | Saturday/Sunday, February 18 - 19, 2017
‘There were many words that you could not stand to hear and finally only the names of places had dignity.’ —Ernest Hemingway
Doughboys Over the Top
With Their Bare Hands
By Gene Fax
Osprey, 495 pages, $32
BY MATTHEW J. DAVENPORT
LT. MILLER JOHNSON hugged the
dirt of a shell crater in no man’s land,
driven down by German machine-gun
fire. He lifted his head just enough to
orient himself in the thick morning
fog, “and behold I was looking into
the muzzle of a German gun two feet
in front of me.” Johnson thought he
had been deserted by his platoon, but
then he heard a familiar voice: “Keep
down, Lieutenant. There she comes,”
followed by a blinding explosion. He
came to, shaken, and saw that one of
his men had taken out the enemy ma-
chine-gun nest with a grenade. Before
pressing on, as the fog began to lift,
Johnson gathered his troops and took
a head count: Of the 50 soldiers he
had led from the trench just an hour
before, only 10 remained.
It was the morning of Sept. 26,
1918, the first day of a massive Allied
offensive against the entrenched Ger-
GETTY IMAGES
man army in northeastern France, one
that would soon become—and to this
day remains—the largest and deadliest
battle in which American troops ever
fought. Johnson’s platoon was just one
of the nearly 200 infantry platoons of
the U.S. 79th Division, each facing its
own fight to conquer the German-oc-
cupied fortified village of Montfaucon.
In “With Their Bare Hands: General
Pershing, the 79th Division, and the
Battle for Montfaucon” Gene Fax mas-
terfully recounts, studies and dissects
their nightmarish struggle.
From the time the U.S. had entered
the war the year before, Gen. John
Pershing, commander in chief of the
American Expeditionary Forces, had
fought inflexibly for American auton-
omy against overwhelming Allied
pressure to split up his divisions and
amalgamate them with veteran
French and British units. But in the
face of a series of devastating German
offensives in the spring of 1918, he ac-
quiesced temporarily, turning some of
his few AEF divisions then in France
over to Allied command. And after
American success in combat at Can-
tigny, Belleau Wood and Soissons,
Pershing won the approval of Gen.
Ferdinand Foch, the supreme Allied
commander, to launch an all-Ameri-
can offensive at St. Mihiel. But it
came with a cost: Foch would only
green-light the American offensive if
Pershing would in turn furnish AEF
divisions for a larger Allied offensive
just days later between the Meuse
River and the Argonne Forest. It was
a decision from which dangled tens of
thousands of American lives, forcing
Pershing—whose best combat-tested,
veteran divisions were committed to
St. Mihiel—to send fresh, inexperi-
enced divisions to the Meuse-Argonne
front, among them the 79th.
Of the divisions Pershing sent to
fight the beginning of the Meuse-Ar-
gonne offensive, a few had combat ex-
perience, and most at least had expe-
The Ugly History of a Beautiful Vaccine
Continued from page C5
For his research, Dr. Hayflick had
created his cell lines using lung tissue
from aborted fetuses. He had access
to a scant supply of these from
Penn’s hospital. At the time, abor-
tions were illegal unless they were
deemed medically necessary, and
most women with unwanted preg-
nancies had to seek the services of
back-street abortionists. But aca-
demic medical centers performed a
small number of legal abortions for
the daughters of the wealthy and
well-connected, usually justified on
the grounds of psychological distress.
Opposition to the use of human
cells in vaccine production was fierce
because of unfounded concerns that
human-derived vaccines could spread
cancer and other diseases. If he
wanted to develop vaccines using his
cell lines, Dr. Hayflick would need fe-
tuses from parents known to be free
from cancer and hereditary diseases.
The delicate nature of the abortions
conducted at Penn kept him from dig-
ging up family histories, but he had
another option. In June 1962, a Swed-
ish scientist who had spent a year at
the Wistar Institute sent him fetal tis-
sue from Stockholm, which he used to
start WI-38.
Stanley Plotkin, a pediatrician at
the Wistar, used WI-38 cells to de-
velop a vaccine for rubella. In the late
1960s, rubella, or German measles,
was the most important virus for
ATTRITION American soldiers in the ruins of the village of Montfaucon, 1918.
rience holding front-line sectors. But
the 79th Division, Mr. Fax explains,
had neither. It was green, filled with
men just recently drafted into service:
Roughly 15,000 of its 27,000 soldiers
had been called up just three months
before the battle and “had virtually no
training before embarking for France.”
The division had landed in France
in late July but had had little time to
train. With no firing ranges avail-
able—all occupied by any of the 28
other U.S. divisions already crowding
the French countryside—the rifle-
men of the 79th were reduced to
practicing on targets made of news-
paper or kerosene cans. The divi-
sion’s critical staff officers had been
sent away for training; its soldiers
had never even been introduced to
tanks or airplanes; and after being
ordered to the front, the division
was finally given its field artillery
brigade just days prior to the attack.
Nine U.S. divisions moved into the
20-mile front between the Argonne
Forest and the Meuse River. Along
with French divisions to their west
and east, the Americans were to
push north through the deep and
formidable German defensive lines.
The objectives on the first day of the
attack, Sept. 26, 1918, were 7 to 10
miles away. As Mr. Fax notes, over
the course of the war no U.S. divi-
sion had yet advanced more than 3
miles in a single day.
For the doughboys of the 79th Di-
vision, the task was especially daunt-
ing: Blocking the pathway to their ob-
jective—on the far side of multiple
lines of German trenches and open
terrain swept by interlocking fields of
machine-gun fire—sat Montfaucon, a
mountaintop of stone ruins trans-
formed into a fortress thick with en-
which there was no vaccine. In most
infected patients, rubella leads to a
trivial illness with mild fever and
rash. But in pregnancy, rubella causes
miscarriages, blindness, deafness, mi-
crocephaly and heart malformations.
After a rubella epidemic in the U.S. in
1964-65, 20,000 children were born
with birth defects. Dr. Plotkin showed
that his vaccine was safe and effec-
tive, although his clinical trials, like
much medical research at the time,
would not meet ethical standards to-
day. His research subjects were or-
phans and intellectually disabled chil-
dren who could not provide informed
consent and received a vaccine whose
side effects were as yet unknown.
Despite negative tests for viral
contamination of WI-38, the National
Institutes of Health blocked approval
of Dr. Plotkin’s vaccine. This was sup-
posedly because of lingering safety
concerns, but the regulators had a
blatant conflict of interest. Scientists
at another branch of the NIH had de-
veloped their own rubella vaccine,
named HPV-77. There were real safety
concerns about HPV-77. It had been
developed in monkey cells, which
were a notorious viral cesspool. Mil-
lions of Americans in the 1950s had
received polio vaccine grown in mon-
key cells that were contaminated with
a carcinogenic virus. Even more wor-
risome, seven people in Germany had
recently died from an outbreak of
Marburg virus, a close relative of Eb-
BOOKS
trenched Germans commanding all
paths of approach 30 miles or more in
every direction. It was, Mr. Fax ex-
plains, “the key German position,” and
its capture was inexplicably assigned
to the greenest troops in the AEF.
Mr. Fax has plumbed a variety of
source materials—original memo-
randa, reports by both sides, daily
Many soldiers fought
for over three days on
a single meal and two
canteens of water.
journals and correspondence—to
transport the reader along with the
soldiers of the 79th through the cruci-
ble of an almost impossible mission.
Nothing cooperated—not the terrain,
not the weather and certainly not the
enemy. Thick fog and later driving
rain disoriented doughboys in already
difficult terrain and prevented artil-
lery pieces from adjusting their aim.
Without reliable intelligence on en-
emy positions, Americans wandered
into tangles of barbed wire and thick
underbrush, becoming easy targets
for pre-sited German machine guns
and artillery on terrain that Mr. Fax
describes as “perhaps the most formi-
dable natural defenses the Germans
could hope for.” Muddy, shell-cratered
ground and obliterated roads pre-
vented artillery from following the in-
fantry and made resupply impossible,
forcing many soldiers to fight for over
three days and nights on a single
meal and two canteens of water. The
shock in this story is not the hell they
endured but the fact that they some-
ola, from contact with African green
monkeys used for medical research.
Dr. Plotkin’s vaccine won approval
only after it was clear that HPV-77
was a lemon. The NIH vaccine had led
to severe joint pain and swelling in
many of the women who received it
and had failed to provide lasting pro-
tection against rubella.
As his WI-38 cells became a global
success story, and were used to
study aging and produce vaccines
against rubella, rabies and adenovi-
rus, Dr. Hayflick looked on with frus-
tration. Koprowski, whose closest as-
Tissue from the lungs of
a single fetus can grow into
22 million tons of cells,
yielding years of vaccines.
sociates were Europeans like himself,
had never made Dr. Hayflick a full
member of the Wistar Institute, thus
denying him job security and guaran-
teed funding. Dr. Hayflick and his
laboratory were getting frozen out of
the vaccine patents and royalties
that WI-38 had made possible. More-
over, Koprowski had promised phar-
maceutical companies ample stocks
of WI-38 without first asking his
permission. As Dr. Hayflick tells the
author, it was like having “the vul-
* ***
how succeeded. The soldiers of the
79th captured Montfaucon after two
days of brutal fighting, and they were
still grinding forward through enemy
ground when relieved from the front
lines after three more.
From the folly and wisdom of top
commanders to the bloody action of
first combat, “With Their Bare
Hands” is an unvarnished examina-
tion of all corners of the battlefield,
filled with failures and setbacks, cour-
age and fear, noble sacrifice and, in
many places, unnecessary casualties.
Mr. Fax considers the battle on its
own terms and in its own time, allow-
ing the reader an unfiltered view of
combat and confusion and command
decisions—both wise and unwise.
He strikes an ideal balance, neither
overstating nor sidelining America’s
part in World War I. He accurately
concludes that the United States’
greatest contribution was to make
clear to an exhausted Germany that it
could no longer win a war of attri-
tion—a war that ended, as Mr. Fax
underscores, in an armistice, not a
surrender.
Perhaps the futility of the entire
war is best expressed in the words
that Mr. Fax shares of a young Ameri-
can officer who wrote of the expres-
sion on the face of a dead teenage
German he encountered near Mont-
faucon: “The innocent, child-like,
questioning wonderment seemed to
indicate that he had left this life puz-
zled as to what it was all about.”
Mr. Davenport is the author of
“First Over There: The Attack on
Cantigny, America’s First Battle
of World War I,” a finalist for the
2015 Guggenheim-Lehrman Prize
in Military History.
tures descend on what I had strug-
gled so hard to give value to.” Feel-
ing disrespected, Dr. Hayflick took
his cells and accepted a professor-
ship at Stanford.
Dr. Hayflick soon found himself
under fire from two formidable insti-
tutions: the Catholic Church and the
federal government. Pro-life activists
attacked him over the fetal origins of
the rubella vaccine. In his defense,
he argued that only tiny amounts of
fetal tissue were needed for vaccine
production. Because of the power of
logarithmic growth, a cell line such
as WI-38, the product of the lungs of
a single aborted fetus, can give rise
to 22 million tons of cells, support-
ing decades and perhaps centuries of
vaccine production. The Holy Office
would ultimately rule that receiving
rubella vaccines made from fetal
cells was not sinful “so long as no al-
ternative vaccines existed,” writes
Dr. Wadman.
More damaging for Dr. Hayflick,
the NIH claimed ownership of his
stocks of WI-38, as was their preroga-
tive under the terms of his NIH
grants. Dr. Hayflick was vilified for
trying to profit from his sales of
WI-38. A destructive legal battle en-
sued that left Dr. Hayflick blackballed
from academia, his reputation in tat-
ters. (After years of wandering in the
academic wilderness, Dr. Hayflick at
age 88 is currently a professor at
UCSF and a respected authority on
THE WALL STREET JOURNAL.
CHILDREN’S BOOKS:
MEGHAN COX GURDON
Tonal
Variety
‘THE DAY ends. The
night falls. And in
between . . . there is
the blue hour.” With
these words, Isabelle
Simler immerses
children in digitally etched land-
scapes cast in the deepening dusk of
“The Blue Hour” (Eerdmans, 42
pages, $19). Mankind and his works
make no appearance in this richly il-
lustrated volume for 4- to 9-year-olds.
As the skies gently darken, we’re in
the company of wild creatures. Some-
times we see them up close, as when
we join blue poison dart frogs on
their droplet-speckled lily pads; some-
times we’re at a distance, watching as
the cobalt back of a blue whale
breaches the moonlit surface of an
ultramarine sea. Each shade of blue
seems prettier and more dramatic
than the one before, giving emphasis
to the color’s remarkable tonal variet-
ies in a picture book that both dazzles
and soothes.
It’s a fact of family life that every
child gets a reputation: Rocky is the
clever one, Bruno is strong. But what
about Antoinette? “Unlike her burly
brothers, she still hadn’t quite discov-
ered what she was good at,” Kelly Di-
Pucchio explains of the poodle-hero-
ine in “Antoinette” (Atheneum, 40
pages, $17.99), a delightful compan-
ion to the 2014 picture book “Gaston.”
Here again the pages brim with
Christian Robinson’s joyful, naif
artwork as we return to the bustle of
two Parisian families of dogs.
Everyone is frisking in the park one
day when a puppy named Ooh-La-La
goes missing. Worried poodles hunt
for her without success; anxious
bulldogs seek but do not find. “In that
moment, Antoinette felt a tug in her
heart and a twitch in her nose. She
could not—would not—give up!” In
this spirited adventure for readers
ages 4-8, it turns out that Antoinette’s
talent lies in the degree of her
doggedness.
It would take parents of monoma-
niacal dedication to raise a child in a
language that no one else speaks. It
would certainly make for a lonely
childhood to be that child. Yet fanati-
cism and loneliness both played a role
in the 19th-century reinvention of the
ancient language of the Jews, as
young readers will find in “The
Language of Angels” (Charles-
bridge, 32 pages, $16.99).
In Jerusalem in 1885, little Ben-Zion
has no friends; how can he, when he
speaks no local language? His father,
Eliezer Ben-Yehuda, wants the child to
hear and speak only Hebrew, a tongue
that had died out centuries earlier as
daily speech. Colorful folkloric illustra-
tions by Karla Gudeon help children
appreciate both Ben-Zion’s struggle
and his dictionary-compiling father’s
ultimate triumph—today three million
people speak the language he
revived—in this accessible picture
book by Richard Michelson.
the science of aging.)
In a final irony, as Dr. Hayflick
found himself temporarily reduced to
collecting unemployment insurance,
the culture of biomedical research
was undergoing a sea change. A prior
generation of scientists had modeled
themselves after the selfless hero of
Sinclair Lewis’s “Arrowsmith” and
scoffed at the notion of profiting from
their discoveries. When Edward R.
Murrow asked Jonas Salk if he in-
tended to patent his polio vaccine,
Salk replied, “Could you patent the
sun?” But the times they were a-
changin’. Dr. Wadman quotes a ven-
ture capitalist who recalled the reac-
tion to one scientist who turned
entrepreneur in 1978. “It was sort of
like when Bob Dylan went electric in
the sixties. We were seeing [him] as a
pioneer, but his colleagues were see-
ing him as a turncoat.”
In 1980, the Supreme Court ruled
in Diamond v. Chakrabarty that living
organisms and other bioengineered
products could be patented. Later
that same year, the Bayh–Dole Act be-
came law, allowing universities, small
businesses and nonprofits to patent
inventions arising from government-
funded research, provided that inven-
tors receive a share of the royalties.
The biotechnology gold rush was on.
Dr. John Ross is the author of
“Shakespeare’s Tremor and Or-
well’s Cough.”
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
THE WALL STREET JOURNAL.
When We Opened Our Doors
American Sanctuary
By A. Roger Ekirch
Pantheon, 293 pages, $30
BY KATHLEEN DUVAL
AMERICA’S FOUNDERS—both its
leaders and those protesting in the
streets and fighting the British
Army—saw immigrants as vital to the
mission of the fledgling nation. The
Declaration of Independence accused
King George III of “obstructing the
laws for naturalization of foreigners”
and refusing “to encourage their mi-
grations” into the colonies. To the
Founders, the king’s restrictions on
immigration were evidence of his de-
sire to keep the colonies backward
and under his thumb. In the newly in-
dependent United States, they firmly
believed, immigration would acceler-
ate economic development and help
the country become a player among
the powerful empires of Europe.
As A. Roger Ekirch’s deeply re-
searched and elegantly written
“American Sanctuary” reveals, early
Americans saw the United States as a
sanctuary for people oppressed by the
old tyrannical governments of Europe.
Refugees were the ideal citizens for a
republic: Having fled tyranny, they
GETTY IMAGES
would be a bulwark against it. And
they came. Nearly 100,000 Europeans
immigrated to the United States in
the 1790s, a dramatic addition to a
population that was just under four
million at the start of the decade.
But when the French Revolution
turned radical in the 1790s, some
Americans began to worry. They
feared that French as well as Irish im-
migrants would drag the new, still-
fragile country into anarchy. Harrison
Otis, a congressman from Massachu-
setts, gave a speech in which he railed
that he did “not wish to invite hoards
of wild Irishmen, nor the turbulent
and disorderly of all parts of the
world, to come here with a view to
disturb our tranquility.” South Caro-
lina Rep. Robert Goodloe Harper pro-
posed getting rid of naturalized citi-
zenship altogether. And from the
beginning Congress limited natural-
ized citizenship to any “free white
person.”
The war that broke out in 1793 be-
tween Britain and revolutionary
France sparked the first great divide
in American politics. Thomas Jeffer-
son and others supported France,
grateful for its help in defeating Brit-
ain in the American Revolution and
for following the United States into
revolution itself. But other Americans,
including John Adams and George
Washington, were aghast at French
revolutionaries’ use of the guillotine
and the Bastille. After Washington’s
administration negotiated a treaty
with the British in 1794 that struck
supporters of France as too cozy, New
Yorkers threw rocks at Alexander
Hamilton. Some congressmen even
talked of impeaching Washington.
Into this fractious debate about the
place of the United States in the
world came the bloodiest mutiny in
the history of the British navy—a mu-
tiny that forced Americans to decide
if the country was truly a haven for
lovers of liberty, even those who had
killed for its sake.
Probably half of the HMS Hermi-
Continued from page C5
pelling case that Europe must forge a
new identity, but I am not at all con-
vinced that it will. The “last chance”
may well glimmer and vanish. In that
case, James Kirchick’s dismal title,
“The End of Europe: Dictators, Dema-
gogues and the Coming Dark Age,”
will prove prophetic. A politician like
Guy Verhofstadt must at least pretend
that problems have solutions; Mr. Kir-
chick, a journalist and conservative
pundit, is under no such obligation.
He understands Europe’s crisis in
moral and ideological rather than in-
stitutional terms—as “a loss of faith in
the universal, humanistic values of
what might be called the European
idea.” Reporting from Ukraine, Poland,
Hungary, Greece, Sweden, France and
Germany, Mr. Kirchick offers a tour
d’horizon of a continent drifting away
from its intellectual and cultural
moorings. The vision is a distinctly
American one, for the “humanistic
values” that Mr. Kirchick believes are
at risk are not those of social democ-
racy and the welfare state, but politi-
cal liberty and individual rights. If Mr.
Verhofstadt’s Europe has gone soft on
nationalism, Mr. Kirchick’s has gone
soft on Russia and Islam.
* * * *
‘O! receive the fugitive, and prepare in time an asylum for mankind.’ —Thomas Paine
IMPRESSIVE ‘Cutting Out the Hermione from the Harbour of Porto Cavallo, Oct. 25th, 1799’ by Thomas Whitcombe.
one’s diverse crew had been “im-
pressed”—meaning that the British
navy had forced them from non-Brit-
ish private merchant ships into British
service. On one day alone in 1795, sail-
ors from the Hermione boarded 20
American ships, took nearly 70 crew-
men (most of whom claimed Ameri-
can citizenship) and forced them into
the British navy. On most ships of the
era, impressed sailors grumbled but
did not mutiny, but circumstances
combined with the revolutionary
times and a particularly cruel captain
to push the Hermione’s crew over the
edge. On the night of Sept. 21, 1797, off
the coast of Puerto Rico, several of the
crew charged into the captain’s cabin,
brandishing swords and axes. After
killing him, crew members searched
the ship and killed all 10 officers.
Mr. Ekirch’s gripping and timely
book both conveys the drama of this
long-forgotten mutiny and reveals its
importance to the early American re-
public. The first part of “American
Sanctuary” tells the story of the mu-
tiny, and the rest of the book traces
the crisis it prompted—specifically
when some of the mutineers from the
HMS Hermione fled to the United
States. Would Americans side with
rebels against British tyranny, or with
the rule of law on the high seas?
Would the United States turn its back
on Thomas Paine’s charge in “Common
Sense” to be “an asylum for mankind”
by extraditing mutineers to Britain?
The man that put all of these
questions to the test called himself
Jonathan Robbins. A little over a year
after the mutiny, an American schoo-
ner docked at the port of Charleston
with Robbins aboard. He had report-
edly bragged to his shipmates that he
had been one of the mutineers on the
now-infamous Hermione. Charleston
officials put him in jail, where an of-
The Disintegration of Europe
Exhibit A of the crisis of faith is
eastern Europe, where states that only
a quarter of a century ago reminded
western Europe why liberal demo-
cratic values were worth fighting for
are now turning to parties offering
tradition, community and Christianity.
Mr. Kirchick devotes a chapter to the
Hungarian regime of Viktor Orbán, a
professed champion of “illiberal de-
mocracy” who has contracted the
sphere of press freedom, curbed the
independence of the judiciary and
strengthened relations with Russia—
all to the cheers of voters. That ma-
lign spirit is now spreading to Poland,
Slovakia and the Czech Republic.
Readers will nod along: Who isn’t
appalled by today’s Hungary? Mr. Kir-
chick, however, reserves his heaviest
ammunition for liberalism’s enemies
on the left. The German shame at past
evils, he insists, has left most of its
citizens unable to formulate clear
moral judgments, unwilling to use
force against threats to their own
principles, prone to accept moral
equivalency between the U.S. and Rus-
sia and hyper-sensitive to revelations
that Washington listened to Angela
Merkel’s phone calls. Anti-Zionism
makes European elites all too quick to
BOOKS
ficer who had served on the Hermi-
one prior to the mutiny visited him
and declared that the man in the cell
was in fact Thomas Nash, one of the
mutiny’s leaders. After the British
consul in Charleston requested the
man’s extradition for court-martial,
U.S. Secretary of State Timothy Pick-
ering and President John Adams de-
termined that this was a simple case
For the Founders, refugees were ideal citizens: They’d
fled tyranny and would be a bulwark against it.
of mutiny and murder on a British
ship. With their approval, the man
calling himself Robbins was handed
over to British justice.
It was a huge political mistake. Ad-
ams’s opponents were already accus-
ing him of caring little for individual
rights. His administration had backed
a newly passed law that increased the
residency requirement for citizenship
to 14 years (it had been only two
years in the original Naturalization
Act of 1790). Congress also granted
the president the power to deport im-
migrant men whom he deemed possi-
ble dangers. Criticizing these “Alien
Acts” became dangerous when Con-
gress passed the Sedition Act in July
1798, which outlawed “false, scandal-
ous, and malicious writing” against
the president or Congress. Outraged
at Robbins’s extradition to a “foreign
belligerent power,” the opposition Re-
publican press warned its readers:
“What was the cause of Robbins yes-
terday, may be yours tomorrow.”
It isn’t often that a reviewer of a
history book needs to avoid spoilers,
but Mr. Ekirch, a professor of history
at Virginia Tech, is such a masterful
storyteller that “American Sanctuary”
explain away anti-Semitic attacks. For
much of the left, Mr. Kirchick writes,
“the Muslim ummah . . . has become
the new proletariat.” The elite has one
hand on the shovel as Vladimir Putin
and the nationalist rabble dig liberal-
ism’s grave.
The circles in which such attitudes
flourish strike me as much smaller
Germany’s shame at past
evils, Kirchick says, has left
citizens unable to make
clear moral judgments.
than they do Mr. Kirchick. As a jour-
nalist, he seems abnormally fond of
the indoors. Despite his travels, he
hardly interviews anyone who doesn’t
have a Ph.D. and an office. He assures
us that the banlieues of Paris really
are “no-go zones” and offers as proof
a 15-year-old newspaper article. It
may be so, but as a fellow journalist, I
say: Show me.
Mr. Kirchick does have a boldly in-
correct take on the refugee crisis
that will disturb the composure of
Saturday/Sunday, February 18 - 19, 2017 | C7
reads like a mystery. What will hap-
pen to Robbins when he leaves
Charleston bound for British justice?
Was he really the Irish rebel Thomas
Nash, with the blood of British offi-
cers on his hands? Or was he inno-
cent Jonathan Robbins, born, as he
claimed, in Danbury, Conn.?
Adams’s Republican opponents ar-
gued that, either way, the United
States had a responsibility to protect
him. They believed that, as Mr.
Ekirch puts it, citizenship is “voli-
tional, not the indelible consequence
of birth.” The United States had a
particular responsibility to someone
who had fought British tyranny so
soon after the American Revolution.
Republicans launched a congressio-
nal investigation in February 1800
and only a largely party-line vote
protected Adams from official cen-
sure by Congress.
Mr. Ekirch shows how the Robbins
controversy helped create one of the
most polarized presidential elections
in American history. In 1800, Ameri-
cans chose between two heroes of
the Revolution: Jefferson and Adams.
By the time they went to the polls,
Americans of the two parties could
barely recognize each other. Adams’s
Federalists called Jefferson an atheist
and a Jacobin. Jefferson’s Republi-
cans called Adams a monarchist des-
pot under the thumb of the British
king. Increasing numbers of Ameri-
cans joined Republican congressmen
and newspapers in seeing the mutiny
on the Hermione as a justified upris-
ing. A Virginian wrote the Alexandria
liberals. Like Donald Trump, he be-
lieves that Angela Merkel made a ter-
rible mistake by throwing Europe’s
doors open to refugees—not simply
because they were Muslim but be-
cause they were overwhelmingly
male, uneducated and unskilled. He
argues that it should have come as
no surprise, though it did, that a mob
of refugees sexually harassed young
women on New Year’s Eve in Cologne
last year. It is often repeated that the
refugees offer the perfect solution to
Germany’s labor shortage; but, as Mr.
Kirchick observes, uneducated Arabs
are hardly the ideal solution to idle
high-tech factories.
These are unpleasant truths that
high-minded Europeans cannot admit
to one another. The refugee crisis has
tested, and will keep testing, Europe’s
commitment to liberal values; the
wave of xenophobia unleashed by the
refugees could swamp the politics that
have sustained those values since
1945. At a certain point in “The End of
Europe,” however, I began to bridle.
Mr. Kirchick argues that in order to
save liberalism Europe must keep the
refugees out, as Denmark and Hun-
gary have. He considers Islam itself in-
compatible with European values, and
Times, “Despicable shall we appear
in the eyes of other nations if the
idea is to go forth that an American
may be robbed of liberty and held in
vile bondage.” When some people
started raising money to build a
monument to Robbins, Federalists
were shocked at their commemora-
tion of a “murderer.” Fury over the
Robbins extradition helped Republi-
cans win close elections in several
states, giving the majority of the
electoral college to Jefferson.
The most surprising of this book’s
many insights is that, after the acri-
mony of the election of 1800, Ameri-
cans returned to—and even broad-
ened—a common definition of
American citizenship rooted in the
concept of liberty. As Mr. Ekirch ex-
plains, the Robbins case “helped to
widen America’s open door to immi-
gration.” The promise was still only
for Europeans, though. An economy
dependent on slavery and the theft of
Indian land created huge exceptions
to American generosity, a discrepancy
19th-century abolitionists would pow-
erfully exploit.
For Europe’s refugees at least,
America would be a sanctuary. By
1802, Congress repealed most of the
Alien and Sedition Acts. For four de-
cades, the country would not extra-
dite a single person facing any
charge, and the memory of Robbins
helped created a permanent “politi-
cal offense” exemption. President
Jefferson’s first State of the Union
address asked, “Shall oppressed hu-
manity find no asylum on this
globe?” It was a rhetorical question.
Of course it would.
Ms. DuVal, a professor at the
University of North Carolina at
Chapel Hill, is the author of
“Independence Lost.”
derides those who defended the right
of French Muslim women to wear a
“burqini” on the beach. For Mr. Kirch-
ick, protecting liberalism is a matter
of building walls against illiberal
forces—even at the cost of the human-
itarian principles central to liberal val-
ues. That’s an exorbitant price to pay.
Angela Merkel is now trying, albeit
belatedly, to balance Europe’s humani-
tarian commitments with pragmatic
political calculations. Germany’s elec-
tions this September will tell us
whether or not she has succeeded.
As a fully paid-up liberal elitist, I
am more comfortable with Guy Ver-
hofstadt’s yearning for a European su-
per-state than I am with James Kirch-
ick’s neo-Cold War liberal restoration.
Yet it is surely true that Europe’s cri-
sis is ultimately a matter more of val-
ues than of the institutions that em-
body them. The great question for the
coming years, for Americans as well
as Europeans, is: Can we find the wis-
dom to determine which values we
must at all cost defend, and which we
must be prepared to re-consider?
Mr. Traub is the author, most
recently, of “John Quincy Adams:
Militant Spirit.”
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
C8 | Saturday/Sunday, February 18 - 19, 2017
‘Family life itself, that safest, most traditional, most approved of female choices, is not a sanctuary: It is, perpetually, a dangerous place.’ —Margaret Drabble
FICTION CHRONICLE: SAM SACKS
Grace Notes of a Late Style
PROVING there’s no
expiration date to the
advice “Write what
you know,” Margaret
Drabble, at the age of
77, has brought out a
book about the indignities, the indul-
gences and, most of all, the duties of
growing old. “The Dark Flood Rises”
(Farrar, Straus & Giroux, 325 pages,
$26), the 20th novel by this invaluable
woman of letters, is unfiltered and un-
sentimental, but also curious and ap-
preciative, for old age, Ms. Drabble
writes, is “a theme for heroism.”
The centerpiece of an ensemble
cast is Fran Stubbs, who still holds a
job in her 70s, criss-crossing England
on behalf of a trust that researches
living arrangements for the elderly.
Her philosophy is that it’s better to
burn out than linger—longevity, she
believes, has ruined old age. Her ex-
husband Claude disagrees. He’s bed-
ridden but content to live for his ap-
petites, taking unalloyed pleasure in
meals, fine wines and nightly sere-
nades from Maria Callas.
GETTY IMAGES
The book jumps to other acquain-
tances. Ivor and Bennett, a gay couple,
are rusticating in the Canary Islands,
finding intellectual nourishment in
hosting younger friends. Back in Eng-
land, we meet Teresa, who is dying of
mesothelioma and fastening onto
every small blessing she can find:
“She is too old to die young, and that’s
a comfort. She often counts, on her
fingers, her remaining comforts.”
Then there’s Josephine, a retired aca-
demic who teaches a continuing edu-
cation course on poets, aging and the
question of “whether or not we can
identify a phenomenon sometimes
known as Late Style.”
One can spot a late style here in
Ms. Drabble’s near total disregard
for narrative structure. “The Dark
Flood Rises” isn’t a story so much as
a set of vividly detailed snapshots of
the routines of aging. The pace, too,
can feel oddly impatient. “Her mind
wanders, in an endless stream of
consciousness,” we read about Fran,
and that well describes the novel’s
arrangement.
The virtue of such a busy canvas,
however, is the sense of connection
that it fosters. Ms. Drabble’s beautiful
2013 novel, “The Pure Gold Baby,”
explored the traditional role the Eng-
lish village had in caring for the men-
tally ill, and her new novel again takes
up the question of collective responsi-
bility. Ms. Drabble’s overarching in-
sight is that no one grows old alone.
Even as her characters face their mor-
tality, they are occupied by the needs
of aging friends and relations. Fran
and Claude have been divorced for
nearly 50 years, but she starts bring-
Children of a Vanished Generation
The Year of the Comet
By Sergei Lebedev
New Vessel, 245 pages, $17.95
BY ALEXANDRA POPOFF
‘THE YEAR OF THE COMET,’ the sec-
ond novel by the author Sergei Lebe-
dev, examines the psychological
trauma Stalinism continues to un-
leash—even on those who never lived
during his reign. The narrator, an un-
named boy living in the 1980s in Mos-
cow, feels the shock of this violent
past as though he experienced it him-
self. Soviet history has taken a heavy
toll on his family—a situation typical
in the country where the Terror Fam-
ine of the 1930s alone wiped out over
six million people, and countless mil-
lions were lost to Stalin’s mass purges
and World War II. Although these hor-
rific events are never discussed in his
family, the legacy of fear seems to be
encoded in the boy’s DNA.
The author himself was 10 years
old when the Soviet Union broke up
and Russia became a nascent democ-
racy. As a teenager, Mr. Lebedev
worked as a laborer on geological ex-
peditions, traveling across Russia’s
north and to Kazakhstan—gulag coun-
try. His first novel, “Oblivion,” pic-
tured the decaying barracks of Soviet
labor camps and evoked the nameless
multitudes, starved and worked to
death in uranium mines and railroad
construction in the Arctic. These mil-
lions died in total isolation, becoming
crossed out from history and from
memory, as if they had never lived.
Russia’s failure to face its past ex-
plains the absence of a national me-
morial to victims of Stalin’s terror.
ing him meals and a poignant, if bris-
tly, relationship develops.
Death and accidents are the grim
commonplace in these late bonds. Ms.
Drabble doesn’t shy from the fact that
her characters “live in the world of
obituaries.” But they are a community
nonetheless, and one drawn with the
perception and understanding of a
great novelist with a lifetime of expe-
rience behind her.
“The Childhood of Jesus,” the 2013
novel that commenced J.M. Coetzee’s
current allegorical series, concerns
immigrants to the city of Novilla, a
boy named Davíd and his guardian
Simón. As Simón attempts to place
the boy in the city’s education system,
Mr. Coetzee enacts a philosophical in-
quiry into the origins of religious
faith. By the novel’s close Davíd has
rejected his teachers’ lessons, claim-
ing a mystical knowledge born of pri-
vate intuition, and the family has been
forced to flee Novilla, whose authori-
ties threatened to place the head-
strong child in a correctional school.
“The Schooldays of Jesus” (Vi-
king, 260 pages, $27) finds them in
the city of Estrella, where Davíd en-
rolls in a school more to his liking.
This academy practices a singular
form of pedagogy: It teaches every-
thing, including mathematics, through
dance. The idea, the instructor Ana
Magdalena explains, is to awaken stu-
dents to a “primal language” that lies
beyond the logical definitions civiliza-
tion has constructed.
“Oblivion” was meant to be such “a
memorial, a wailing wall.”
Mr. Lebedev’s follow-up continues
to explore Russia’s national amnesia
and the ongoing psychological trauma
of Stalinism. It focuses on private
memory, on families’ fear of remem-
bering their own histories. Relatives of
the arrested severed family ties, were
afraid to preserve records and lived
with stigma. The novel examines
memory transmission from an inter-
esting angle: families may be forced to
forget totalitarian violence, but the
In the aftermath of
totalitarian violence,
families fear remembering
their own histories.
following generations are conditioned
to carry on a demoralizing legacy.
What is it like to grow up without
GETTY IMAGES
knowing your family’s past? Family
photographs in the boy’s grandmoth-
ers’ apartments display young faces:
None of these relatives died of natural
causes or lived to old age. The grand-
mothers are silent about the fates of
“the eleven brothers and sisters, two
husbands, and an almost uncountable
number of more distant relatives”
their families altogether lost, and the
boy doesn’t press them to talk “out of
my hidden horror.”
But escaping the past is not that
simple. When the narrator’s mother
fails to get pregnant for a long time,
even though there is nothing wrong
physiologically, an old doctor tells her
that he had seen other patients whose
“unconscious fear of motherhood
BOOKS
Simón shares our bewilderment,
and the novel focuses on the debate
he wages within himself between the
influences of reason—what Ana Mag-
dalena calls “the law of the ant”—and
irrational passions like love and a be-
lief in invisible realms. A shocking
murder makes the argument more
Fran’s philosophy is that
it is better to burn out
than linger—longevity,
has ruined old age.
pressing, as Davíd shows sympathy
for the killer, a man undone by lust,
just as Jesus felt most at home with
criminals and prostitutes.
The good news (if you will) is that
the parallels to the Gospels are not so
schematic in this novel as in its airless
predecessor. Mr. Coetzee gives himself
more imaginative space to investigate
the tension expressed by the mur-
derer, who, seeking atonement, be-
moans that “the law takes no reckon-
ing of the state of a man’s soul.”
Even so, “The Schooldays of Je-
sus” is an anemic reading experience.
Mr. Coetzee expends little effort in
giving the story shape or texture. His
world-building is haphazard and his
descriptions incurious. About Davíd’s
strange dancing, we learn only that it
“consists in gliding from point to
connected to the great number of vio-
lent deaths the previous generation
had suffered.” His advice is to take a
vacation in a peaceful place “where
nothing would remind her of time,
history, or the past.”
The narrator’s birth during an earth-
quake, a rare seismic event in Moscow,
is equally symbolic. The earth’s tremor
awakens “the deepest historical fears,”
and induces labor in the boy’s mother.
Appropriately enough, she is a geolo-
gist who studies the causes of natural
disasters; her husband is a scholar who
specializes in “catastrophe theory.”
This is, of course, a metaphor for Sta-
lin’s regime, which unleashed catastro-
phes well beyond its era.
Even as the family doesn’t talk
about their past, they are clearly ob-
sessed with it: The boy feels he is
loved not only for himself, but for a
whole “line of men” killed in the war
or arrested. “Every family in the USSR
was ‘overloaded’ by history,” the au-
* ***
point on the stage.” Too much of the
novel is a drab receptacle for genu-
inely intriguing ideas; trapped some-
where inside it is a first-rate volume
of essays.
In Karen An-hwei Lee’s sun-soaked
fantasia “Sonata in K” (Ellipsis
Press, 143 pages, $14), Franz Kafka
has been reanimated as a hologram by
Hollywood producers who want him
to advise on a film adaptation. Thus
he finds himself visiting the boule-
vards and health food cafes of Los An-
geles under the care of a Japanese-
American interpreter and cicerone
who calls him Kafka-san and herself
goes by the Kafkaesque moniker K.
The film consultations go poorly,
as Kafka-san is at a loss to under-
stand why the script is about a rhi-
noceros. K suggests that the studio
bigs may have confused him with Eu-
gene Ionesco. Yet despite the mani-
fold bizarreries of lotus-eating Los
Angeles—“a metropolis of unheimlich
sprawl into perpetual drought”—he
finds the city restorative. Ms. Lee, a
poet, encapsulates his reflections
with exquisite delicacy and grace.
Talk of used bookstores brings to
mind “the toasted melancholy of aged
paper.” A flock of birds pass overhead
like “etudes of light.” Even the smog,
coating the skyline “with a palimp-
sest of schmutz,” is worthy of eulogy.
The ridiculous dream of Amerika
seems to bring out Kafka’s romantic
side. Maybe all he needed in life was
a bungalow in Venice Beach.
thor writes, “the family space did not
protect you from anything; it had lost
its autonomy. . . . The child can be
loved and spoiled, but he still feels
that below the cover of daily exis-
tence . . . there are tectonically active
layers saturated with blood that is
hardly symbolic.”
The boy, unable to tamp down his
curiosity about his family’s genuine
history, secretly searches his grand-
mothers’ apartments for clues. Hidden
in a storeroom is the Great Soviet En-
cyclopedia, an edition printed before
Stalin’s Great Purge, filled with names
and stories of a whole vanished gener-
ation. He has discovered what he had
been looking for: “the remains of the
lost country, the Atlantis.” Later, dur-
ing the Gorbachev glasnost, on a ski-
ing trip near Moscow he finds an
abandoned railroad in the forest, the
tracks leading to the secret Butovo
“firing trenches,” realizing from his
reading it was a place of mass execu-
THE WALL STREET JOURNAL.
SCI-FI: TOM SHIPPEY
Time For
A Change
WHAT HAPPENED
to the future sci-fi
promised us back in
the Asimov era? The
robots, aircars, jet-
packs and space colo-
nies? Shouldn’t we have them by now?
In “All Our Wrong Todays” (Dut-
ton, 384 pages, $26) Elan Mastai’s
narrator Tom Barren says we do, or
we did. All the advances sci-fi once
imagined were made possible back in
1965. That year an inventor named Li-
onel Goettreider turned on his famous
Engine, which converted the Earth’s
rotation into an endless supply of free
energy, thus enabling the conquest of
poverty, famine, war and disease—
though not jealousy, lust or crime.
What went wrong is, first, that an-
other scientist, Victor Barren, created
a time machine that allowed a limited
return to the Goettreider Moment.
Second, he put his son Tom on the
team of chrononauts as an understudy.
Third, the team’s ace member dropped
out, as a result of getting pregnant the
night before launch by Tom, and
fourth, Tom is in every respect a klutz.
Tom botches the whole trip and
sends the world spinning down the
timeline that leads to our present: a
“dank blister” of a world, where peo-
ple wear clothes of vegetable matter,
not laser-hardened strands of liquid
polymer, and eat undisguised animal
protein, not flavored nutrient gel.
In our world Tom is “John,” and
he’s a success story, not a klutz, while
his genius father is a comic failure.
Mr. Mastai’s story is a long riff on the
time paradoxes lovingly explored in
previous sci-fi. It’s also underpinned
by love triangles, one of them con-
verted by time paradoxes into a quad-
rangle, or perhaps (they’re compli-
cated) a double triangle.
Bafflement is kept at bay by the
fact that Mr. Mastai’s model, openly
acknowledged, is Kurt Vonnegut’s
“Cat’s Cradle,” with its short chapters
and snappy punchlines. He has caught
the tone very well: a narrative voice at
once wise and naïve, indignant and re-
signed, flip and deeply sad. He goes
past Vonnegut in stylistic experi-
ments—one chapter is just expletives,
one is a monologue on sexual betrayal,
two more turn out to be “John’s” notes
on Tom, and for good measure one
whole chapter is printed backwards.
There’s a difference, though. Von-
negut was powered by living through
World War II and wondering how
things got so bad. Mr. Mastai has
lived through decades of peace and
prosperity. His question is, shouldn’t
we have done better? That’s the sci-fi
question for today.
tions under Stalin. The author re-
marks: “The USSR, continually editing
and reshaping its mythological past,
was essentially a matryoshka doll of
images and myths . . . inside each con-
struction you could endlessly search
for the truth.”
Mr. Lebedev seems to speak on be-
half of his generation when he writes:
“Other children grew energetically and
boldly, with no fear of the future, like
greedy and agile shoots of a strong
plant. We existed with uncertainty,
feeling our way as if in constant pain
and unable to heal.” The comet cer-
tainly doesn’t help. It is visible every
76 years, and the narrator’s grand-
mothers believe its emergence in 1910
brought on World War I. They fear a
new disaster, which indeed comes, al-
though this time not from heaven: The
Chernobyl disaster was caused by the
Soviet tradition of suppressing facts.
Antonina W. Bouis has translated
the best of Soviet and post-Soviet
writings, including works by the Nobel
Laureates Svetlana Alexievich and An-
drei Sakharov, and the ease with
which she renders Mr. Lebedev’s prose
creates the illusion that both his nov-
els were originally written in English.
In the 1990s, a joint Russian-
American study examined the impact
of Stalin’s purges on three genera-
tions of Russian families. It discov-
ered that suppression of memory
about arrested relatives resulted in
lower psychological and social func-
tioning abilities in grandchildren.
“The Year of the Comet” brings the
truth of this to light.
Ms. Popoff’s literary biographies
include “Tolstoy’s False Disciple”
and an upcoming book about Vasily
Grossman.
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
THE WALL STREET JOURNAL.
‘Regardless of whether people have free will, human flourishing requires that they live in an environment in which they are treated as if they did.’ —Charles Murray
Why They Voted For Trump
Glass House
By Brian Alexander
St. Martin’s, 320 pages, $26.99
BY ROGER LOWENSTEIN
ONE OF THE BEST BOOKS on the
social divisions exposed by Donald
Trump’s election was written a full
election cycle before it. Charles Mur-
ray’s “Coming Apart” (2012) depicted
a fractured America in which the very
wealthy were hidden away in super
ZIP Codes and private jets and the
working class had lost faith in the
bedrock institutions of marriage,
work and community.
Brian Alexander’s “Glass House:
The 1% Economy and the Shattering
of the All-American Town” documents
a single town in Mr. Murray’s Amer-
ica. It is a devastating portrait.
Lancaster, Ohio, was once a thriv-
ing city of glass-makers, shoe facto-
ries, natural gas operations and
more. By way of culture, it had a mu-
sic festival, a county fair and the
Sherman House (birthplace of the
Civil War general). Cozily nestled
just west of the Appalachian foot-
hills, it had something in addition to
its churches, parks, taverns and
bowling alleys. Lancaster was a place
GETTY IMAGES
where company executives lived
within a few blocks of workers,
where bankers and union reps be-
longed to the same lodge, where An-
chor Hocking, the town’s biggest em-
ployer, backed up a semi loaded with
frozen turkeys at Thanksgiving, and
where, when its plant caught fire,
residents chipped in to rebuild it.
People who lived there thought
they were lucky twice—born in Amer-
ica and born in Lancaster. In 1947,
Forbes devoted its 30th-anniversary
issue to the city as the epitome of
American free enterprise. Salaries
may have been modest, but workers
enjoyed perks: company pensions,
picnics, softball. Even the rich lived in
relative modesty, Forbes noted.
Conformity was enforced by some
small-town Babbitry, of course, and
masked an undertone of racism.
Forbes a bit too smugly applauded
the lack of any “foreign element.”
Still, business was prosperous, the
people civic-minded. Of the Anchor
men who went to war, 80% returned
to work at the plant after the fighting.
Their spouses ran polio drives and
played the role of company wives—
contentedly, according to Mr. Alexan-
der, who grew up there in the ’60s
and ’70s. Children went to public
schools and played outside. They got
cherry Cokes at the drugstore on
their parents’ account.
If Lancaster was never quite so
Inventing the Multiverse
A Big Bang in a Little Room
By Zeeya Merali
Basic, 236 pages, $27.99
BY PETER WOIT
HUMAN BEINGS have always been
fascinated by the question of the ori-
gin of the universe. The past hundred
years have seen a dramatically suc-
cessful effort by physicists and as-
tronomers to move this question from
untestable philosophical and theologi-
cal speculation to solid science. We
now have a relatively well-understood
theory that allows us to trace the his-
tory of the universe back to some mo-
ments after a “Big Bang.” What hap-
pened at the Big Bang—or before—is
an irresistible question but one that,
for now, as science, lies in the realm
of the purely speculative.
In “A Big Bang in a Little Room,”
science writer Zeeya Merali turns the
question around, asking instead
whether physicists can create a “baby
universe,” born in its own Big Bang.
Indeed, one prominent theorist she
interviews has suggested that our
own universe might be a baby uni-
verse created by a “physicist hacker,”
with the complex pattern of funda-
mental particle masses intended as
some sort of message to us. thereby
learning more about the beginnings of
the “old” one.
Ms. Merali, who has a Ph.D. in cos-
mology from Brown University, ex-
plains that her interest in this topic is
tied up with her religious beliefs: If
we ourselves could play God and cre-
ate a new universe, wouldn’t that cre-
ation amount to a theological discov-
ery, showing the likelihood that some
higher intelligence was responsible
* * * *
HEARTLAND A political rally in downtown Lancaster, Ohio.
idyllic as the author recalls, his prem-
ise of a community gainful and at
peace with itself stands up to scru-
tiny. A town of “people who were ei-
ther moderate union Democrats or
moderate business Republicans,” Mr.
Alexander writes; they “worked hard,
but most believed they’d made a fair
deal.” And then, it all went bad.
Mr. Alexander, a magazine journal-
ist, moved back to his hometown in
2014 and discovered a shattered com-
munity: its industry gone or hollowed
out by an orgy of Wall Street deal-
making, its public officials tainted by
scandal (the mayor’s wife was con-
victed of embezzlement last year), its
once-proud schools getting failing
marks, its people swept up by a drug
epidemic and its faith in either local
or national institutions gone.
Anchor Hocking is at the center of
the book. Founded in 1905, by the
late 1960s it was the world’s largest
maker of glass tableware, the sec-
ond-largest of glass containers such
as beer bottles and baby food jars,
and the beating heart of Lancaster—
patron to more than 5,000 employ-
ees in a town of 29,000.
Today, Lancaster has 39,000 people
and only about 1,000 have jobs at the
for the Big Bang? She structures her
narrative around interviews with
prominent theoretical physicists; they
mostly discuss science, but religious
questions sometimes play a role, with
often fascinating results. While some
refuse to engage, she gets others to
discuss such topics as the relation of
the laws of physics to God’s happi-
ness, the possibility of a physical
“consciousness field,” and what the
quantum mechanics of the Big Bang
might indicate about the possibility of
life after death and resurrection.
Whether or not you believe in a
“physicist hacker,” you have to have
some sort of theory that applies to
the era before the Big Bang. Around
What quantum mechanics
indicates about life after
death and resurrection.
1980 various “inflationary universe”
models were proposed, in which a
very short period of exponential
SCIENCE SOURCE
growth at the time of the Big Bang
provided a possible explanation for
some observed large-scale properties
of the universe. These models invoked
a new, speculative “inflaton” field
(and, no, that’s not a typo—it’s analo-
gous with boson, muon, etc.) respon-
sible for the expansion; but the prop-
erties of these models had to be
carefully chosen to match observa-
tions. Ms. Merali does an excellent job
of describing the early history of such
work, interviewing important figures
like the theorists Alan Guth and An-
drei Linde, who along with others in-
vestigated the issue of whether such
models would allow us to make ex-
BOOKS
company. Those that do seem un-
happy. Mr. Alexander introduces us to
Brian Gossett, a fourth-generation An-
chor worker. He plainly hates the job.
“The people who own the place don’t
give a s— about us,” he laments.
It is hard to keep straight who
does own the place. Since 1987, An-
chor has had a dozen CEOs or presi-
dents, been raided by Wall Street
(Carl Icahn in a successful bit of
“greenmailing”), been sold to a corpo-
rate buyer (Newell Corp.), seen a divi-
sion spun off and relocated to Tampa,
been resold to a private equity firm
(Cerberus Capital Management), filed
for Chapter 11 under the Federal
Bankruptcy Code, been re-capitalized
and sold to another PE firm (Mono-
moy Capital Partners, which gorged
on management fees as the company
was going under), merged, gone pub-
lic and filed for Chapter 11 and been
recapitalized once more.
If capitalism thrives on creative
destruction, Anchor epitomizes the
downside. Typically, its new owners
rechristened it “Global Home Prod-
ucts” in 2004 and then “EveryWare
Global” in 2012—as the author ob-
serves, names without attachment “to
any real place, person [or] history.”
trapolations about what things were
like back before the Big Bang. They
also began discussing models of baby-
universe creation; by 1992 Mr. Linde
had published a paper he first titled
“The Hard Art of Universe Creation.”
Mr. Linde is the central figure in
this story, and Ms. Merali describes
him as “a showman: bombastic, pas-
sionate, and fueled by the certain be-
lief that inflation theory, which he
helped to invent, is correct.” While Ms.
FORKING PATHS A model of multiple universes evolving after the Big Bang.
Merali takes all of this seriously, there
are very good reasons why most phys-
icists don’t. Readers of “A Big Bang in
a Little Room” would be well-advised
to enjoy the ride but stay skeptical. In-
flationary models can to some degree
be confronted with observation and
tested (a topic covered in other books
but not this one). Attempts to give
these models theoretical grounding
(such as string theory) also cannot be
Saturday/Sunday, February 18 - 19, 2017 | C9
This rootlessness hit the workers
hardest. Their pensions were termi-
nated (and the obligations assumed
by the federal insurer); healthcare,
benefits and wages put to the knife.
If capitalism thrives on
creative destruction,
Ohio’s Anchor Hocking
epitomizes the downside.
Humbling in a non-economic sense,
was the fact that the Anchor head-
quarters left town, and out-of-town
execs were less visible in local chari-
ties and rarely showed up at em-
ployee funerals, as had been tradi-
tional. Slowly but surely, attention to
craftsmanship faded; maintenance
was deferred. EveryWare downshifted
from delicate stemware to less skilled,
and less satisfying, work such as
bakeware. More than one CEO
pledged and earnestly strove for a
comeback. But promises got old. Joe
Boyer, a glassworker with creaky
knees who cannot afford to see a spe-
cialist, told the author his colleagues
independently tested: They involve a
morass of many different unobserv-
able new entities, inflaton fields
among them, with no understanding
of the physics of such a system.
Mr. Guth was initially fascinated by
the idea of baby universes getting
produced and making up a multiverse,
though he imagined these other uni-
verses would all have the same phys-
ics as ours. Ms. Merali relates that he
quickly lost interest: Why care much
about cosmological models producing
not just our universe but other copies
we can never observe? Over the past
15 years, however, Mr. Linde’s slightly
different argument—for a multiverse
of universes, each with different phys-
ics, has become very popular. Such a
multiverse even provides an explana-
tion for the lack of progress in recent
decades toward a better understand-
ing of where fundamental laws of
snort Percocet and OxyContin behind
their machines.
Mr. Alexander blames post-indus-
trial capitalism and the free-market
doctrines of Milton Friedman (ironi-
cally, some of the people he inter-
views blame creeping statism). For-
eign competitors certainly hurt
Anchor; so did big-box stores such
as Walmart, which bargained down
prices. This saved money for people
who bought baby food, but cut into
corporate profits and then employee
salaries. Also, the company that
Forbes had so admired was becom-
ing complacent; takeovers have their
purpose. Mr. Alexander laments that
EveryWare—now known by yet an-
other name, the Oneida Group—did
not act out of a sense of “justice” to
employees. This misconstrues an
employer’s proper obligation: fair-
ness and decency at a minimum, a
commitment to a common purpose
for firms that hope to endure.
EveryWare’s odyssey mightily con-
tributed to Lancaster’s decline, but it
wasn’t the sole cause. Mr. Alexander
painstakingly reports the city’s down-
ward spiral. Department stores folded
and in their stead arrived pawn shops
and dollar stores. Fear replaced trust.
Kids stay indoors now; more adults
than children are seen on bicycles in
Lancaster’s streets.
Mr. Alexander’s portrait suggests
that people need some larger bond
and perhaps protector—if not their
employer or government then a
church, a civic group, a team—to
thrive. Otherwise they are prey to the
crushing ennui cited by Mark Kraft,
who, Mr. Alexander reports, was
raised in a loving, two-parent home in
Lancaster but became a heroin addict.
The drug culture, at least, alleviated
the tribal void. Mr. Alexander ob-
serves that even users “looked out for
each other when they weren’t snitch-
ing on each other.”
“Glass House,” it must be said, is
not an especially easy book to read.
The author seems to have inter-
viewed nearly everyone in the local
phone book; trimming would have
helped. He is also prone to conven-
tional judgments about Wall Street
and politics. Regarding the latter, he
writes that, for instance, both Frank-
lin D. Roosevelt and John F. Kennedy
“won their elections against small-
government conservatives.” This
mischaracterizes both Herbert Hoo-
ver and Richard Nixon. But for any-
one wondering why swing-state
America voted against the establish-
ment in 2016, Mr. Alexander supplies
plenty of answers.
Mr. Lowenstein’s most recent book
is “America’s Bank: The Epic Strug-
gle to Create the Federal Reserve.”
physics come from: The laws we ob-
serve are just artifacts of where vari-
ous inflaton fields happened to ran-
domly end up after our Big Bang; in
other universes, the laws are differ-
ent. Ms. Merali gives a disturbing ver-
sion of this, contemplating the possi-
bility that “string theory and inflation
may be conspiring against us in such
a way that we may never find evi-
dence for them, and just have to trust
in them as an act of faith.”
Science, however, is fundamentally
not about faith but about evidence.
One section of “A Big Bang in a Little
Room” describes well-advertised
hopes from 10 years ago that the new
Large Hadron Collider in Geneva
might somehow find evidence for ex-
tra dimensions, magnetic monopoles
or other extremely exotic new phys-
ics. Based on this, the jacket copy tells
us that “within the next few decades”
physicists may be able to use this new
physics to create baby universes. This
is nonsense, for a list of reasons, be-
ginning with the implausibility of
such ideas in the first place and going
on to the fact that data from the LHC
is now here, and has shown no evi-
dence at all for any of them.
In an era where “post-truth” was
the word of the year, scientists and
science writers need to make clear
that science is not a species of theo-
logical or philosophical speculation
and not about belief or entertainment
value. Legitimate scientific claims are
those that can be backed up with evi-
dence, and unfortunately the wonder-
ful and exciting story told well here
contains none at all.
Mr. Woit is the author of “Not
Even Wrong: The Failure of String
Theory and the Search for Unity in
Physical Law.”
 For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
C10 | Saturday/Sunday, February 18 - 19, 2017
‘Were all men equal to-night, some would get the start by rising an hour earlier to-morrow.’ —Elizabeth Gaskell
MYSTERIES: TOM NOLAN
GETTY IMAGES
The Empty Chair
WASHINGTON, D.C.,
is the “Shining
City” (Ecco, 356
pages, $26.99) of
journalist Tom
Rosenstiel’s skillful
and memorable first novel—a place
of big egos, self-righteous ideologues
and dysfunctional government. “No
one survives long in the city counting
on it to be better than it is,” thinks
Peter Rena, the book’s “pragmatic
idealist” protagonist. “That doesn’t
mean . . . you should make it worse.”
Rena, an ex-Special Forces sol-
dier, does his best to make things
better as a private crisis consultant
for business, legal and political cli-
ents: He’s “the guy who comes in
when PR won’t work.” It’s a daunt-
ing opportunity for Rena when his
small firm is hired not only to vet
the maverick judge whom the presi-
dent wants to fill a Supreme Court
vacancy but to make sure that he
wins Senate confirmation.
It doesn’t help that the jurist in
question is a gruff-spoken Bay Area
“public intellectual” with no obvious
support and a history of unconven-
tional statements. Even as Rena and
his team lead the recalcitrant judge
through tough mock questioning,
they scour his past for any obscure
words or deeds that might surface to
embarrass him. Alarm bells ring at
the discovery of the recent murders
of at least two people connected to a
homicide case the judge presided
over decades ago: Are these deaths
coincidental or part of a revenge
conspiracy that may target the nomi-
nee himself?
“Shining City” has the excitement
of a courtroom thriller. Its 24-hour
attempt “to solve murders three
thousand miles and three months
apart” delivers the excitement of a
police procedural. And its sketches of
a host of D.C. types have a nice sa-
tiric edge (“Contrary to the carica-
ture his critics make of him, the man
is a good deal more than the sum of
his resentments”). Finally its hero’s
ruminations on politics as the art of
the possible give readers much to
ponder. “On balance,” a poker-faced
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Elizabeth the Queen 10 – Uninvited
Sally Bedell Smith/Random House Publishing Group
Rena concludes, “I think it’s better
not to have liars and criminals in
government.”
Cara Hoffman’s gritty novel “Run-
ning” (Simon & Schuster, 269
pages, $26) begins compellingly:
“Jasper died a week before I returned
to Athens, so I never saw him again.”
This is a tale of three 20-year-old ex-
patriate dropouts (two English fel-
lows and an American woman) who
fall into one another’s company in
Athens in 1988 and eke out livings on
the crime-tinged fringes of the tourist
trade. All three are “runners”: shills
who lure weary travelers to fleabag
hotels for a cut of the room rent. “Af-
ter they had checked in and paid,” ex-
plains Bridey, the American girl, “we
got our commission money. . . . What
happened later to all their nice things
was purely a matter of chance.”
Hired to vet a Supreme
Court nominee, an
ex-Special Forces soldier
discovers a few surprises.
The trouble starts when Jasper,
the most dissolute of the trio, con-
cocts a stolen-passport scheme which
leads to the death of seven people.
His partners are sickened, but Jasper
feels no guilt: “We didn’t kill any-
one. . . . We sold an item. . . . If we
didn’t . . . someone else would.” But
the unintended consequences accu-
mulate. One of their hotel neighbors,
a menacing Irish soldier of fortune,
thinks their activities have threat-
ened his safety. Then there’s the Arab
student whose passport they stole,
who’s been arrested and charged
with terrorism. What happens to all
these players is revealed in a kaleido-
scope of flashbacks and flash-for-
wards that the author manipulates
for maximum character development
and suspense. Ms. Hoffman writes
like a dream—a disturbing, emotion-
ally charged dream that resolves into
a surprisingly satisfying and redemp-
tive vision.
TITLE THIS LAST
AUTHOR / PUBLISHER WEEK WEEK
Three Days in January 6 5
Bret Baier with Catherine Whitney/William Morrow
You Are the Universe 7 New
Deepak Chopra & Menas C. Kafatos Ph.D. /Harmony
Big Agenda 8 –
David Horowitz/Humanix Books
The Lose Your Belly Diet 9 –
Travis Stork /Ghost Mountain Books
Jesus Calling 10 9 Double Down (DWK #11)
Sarah Young/Thomas Nelson Publishers
Nonfiction Combined
TITLE THIS LAST
AUTHOR / PUBLISHER WEEK WEEK
Hidden Figures 1 1
Margot Lee Shetterly/William Morrow & Company
Hillbilly Elegy 2 2
J.D. Vance/Harper
Killing the Rising Sun 3 3
Bill O’Reilly & Martin Dugard/Henry Holt & Company
The Cellulite Myth 4 New
Ashley Black with Joanna Hunt/Post Hill Press
Milk And Honey 5 4
Rupi Kaur/Andrews McMeel Publishing
The 5 Love Languages 6 9
Gary Chapman/Northfield Publishing
Three Days in January 7 6
Bret Baier with Catherine Whitney/William Morrow&Co.
Jesus Calling 8 –
Sarah Young/Thomas Nelson
You Are a Badass 9 8
Jen Sincero/Running Press Book Publishers
10 7 The Shack
Lysa TerKeurst/Thomas Nelson
* ***
BOOKS
FIVE BEST: A PERSONAL CHOICE
Ruth Scurr
on novels of political protest
advocate of the poor and down-
North and South trodden. “What makes for rioting?”
By Elizabeth Gaskell (1855) Hugo asks. “Everything and noth-
ing. A gradual build-up of electric-
1
SET IN MILTON, a fictional in- ity, a sudden spark, an uncontained
dustrial town in northern Eng- force, a gust of wind. This gust of
land, “North and South” is a pio- wind encounters individuals who
neering depiction of the clashes think, minds that dream, souls that
between employers and workers in suffer, passions that burn, wretch-
organized strikes. The heroine, Mar- edness that howls, and carries them
garet Hale, an outsider from south- away with it.” While he was writing
ern England, urges her new friend “Les Misérables,” Hugo witnessed
John Thornton, a cotton-mill owner, the Revolution of 1848. As a newly
to “speak to your workmen as if they elected deputy of the National As-
were human beings. Speak to them sembly, he commanded a battalion
kindly. Don’t let the soldiers come in of soldiers and suppressed one of
and cut down poor-creatures who the barricades. After personally
are driven mad.” Margaret witnesses countering revolutionary violence,
violent protest at firsthand. She no- Hugo suspended work on his novel
tices that “many in the crowd were for many years. When it was finally
mere boys; cruel and thoughtless— finished, he declared that it was
cruel because they were thoughtless; “meant for everyone” because “hu-
some were men, gaunt as wolves, mankind’s wounds, those huge
and mad for prey.” Gaskell’s novel sores that litter the world, do not
was originally serialized in Dickens’s stop at the blue and red lines
magazine Household Words. Dickens drawn on maps.”
declared it “wearisome to the last
degree,” but posterity has disagreed.
Margaret is among the first finan- The Sweetest Dream
cially and psychologically indepen- By Doris Lessing (2001)
dent businesswomen in English liter-
3
ature, and it is through her influence LESSING FICTIONALIZED her
that Thornton comes to understand political experiences in post–
modern labor relations. World War II England in “The
Sweetest Dream,” published when
she was 82. Arch and skeptical, the
Les Misérables novel casts a cold eye on political
By Victor Hugo (1862) activism. Frances Lennox, originally
a solicitor’s daughter from Kent,
2
THE PRINCIPAL EVENTS of looks back on her political initiation
Hugo’s masterpiece take place by her now-estranged husband:
in 1832, half a century after “Johnny Lennox introduced her to
the French Revolution and two the Young Communist League just as
years after the July Revolution he was leaving it to be a grown-up,
brought Louis Philippe, the “Citizen if not yet a soldier. He was a bit of a
King,” to the French throne. “Les star, Comrade Johnny, and needed
Misérables” fictionalizes the barri- her to know it.” The novel opens in
cades that were erected in Paris af- 1960s London, where Frances lives
ter the death of Gen. Lamarque, an with her mother-in-law, two sons
and a collection of teenage misfits
after Johnny has abandoned her for
a more glamorous comrade. Moving
on through the 1970s and ’80s, the
novel continues to address the
dream of a perfect society, its plot
shifting to a fictional African coun-
try, Zimlia, based on Zimbabwe,
where Lessing grew up. Her por-
traits of human relationships against
the backdrop of brittle ideological
commitment are beautifully drawn.
Saturday
By Ian McEwan (2005)
4
IN THE WAKE of the 9/11
terrorist attacks, Ian McEwan
wrote “Saturday,” a novel in
GETTY IMAGES
which the central character, neuro-
surgeon Henry Perowne, reflects on
the emotional foundations of politi-
NORTHERNER Elizabeth Gaskell. cal belief. Setting the action on
Hardcover Fiction
TITLE THIS LAST TITLE THIS LAST
AUTHOR / PUBLISHER WEEK WEEK AUTHOR / PUBLISHER WEEK WEEK
Norse Mythology 1 New Pete the Cat: Valentine’s Day Is Cool 6 – representing about 85% of the nation’s book sales.
Neil Gaiman/W. W. Norton & Company James & Kimberly Dean/HarperFestival
Echoes in Death 2 New Never Never 7 2
J.D. Robb/St. Martin’s Press James Patterson&Candice Fox/Little, Brown and Company
King’s Cage 3 New Oh, The Places You’ll Go! 8 –
Victoria Aveyard/Harper Teen Dr. Seuss/Random House Children’s Books
Love from The Very Hungry... 4 4 Green Eggs and Ham 9 –
Eric Carle/Grosset & Dunlap Dr. Seuss/Random House Children’s Books
5 1 Dog Man Unleashed (Dog Man #2) 10 8 questions to Peter.Saenger@wsj.com.
Jeff Kinney/Amulet Books Dav Pilkey/Graphix
Fiction E-Books Fiction Combined
TITLE THIS LAST TITLE THIS LAST
AUTHOR / PUBLISHER WEEK WEEK AUTHOR / PUBLISHER WEEK WEEK
Echoes in Death 1 New Echoes in Death 1 New
J.D. Robb/St. Martin’s Press J.D. Robb/St. Martin’s Press
King’s Cage 2 New Norse Mythology 2 New
Victoria Aveyard/HarperCollins Publishers Neil Gaiman/W. W. Norton & Company
Norse Mythology 3 New King’s Cage 3 New
Neil Gaiman/W. W. Norton & Company, Inc. Victoria Aveyard/Harper Teen
The Handmaid’s Tale 4 – A Dog’s Purpose 4 1
Margaret Atwood/Houghton Mifflin Harcourt W. Bruce Cameron/Forge
The Secret Wife 5 – A Man Called Ove 5 4
Gill Paul/HarperCollins Publishers Fredrik Backman/Washington Square Press
Rules of Prey 6 – 1984 6 2
John Sandford/Penguin Publishing Group George Orwell/Signet Book
Fake Fiancée 7 New The Handmaid’s Tale 7 –
Ilsa Madden-Mills/Ilsa Madden-Mills Margaret Atwood/Anchor Books
Right Behind You 8 1 Never Never 8 5
Lisa Gardner/Penguin Publishing Group James Patterson&Candice Fox/Little, Brown and Company
My Not So Perfect Life 9 New Right Behind You 9 3
Sophie Kinsella/Random House Publishing Group Lisa Gardner/Dutton Books
10 – Love from The Very Hungry... 10 – Good to Great
William P. Young/Windblown Media Eric Carle/Grosset & Dunlap
THE WALL STREET JOURNAL.
MS. SCURR is the author, most
recently, of ‘John Aubrey: My
Own Life.’
Feb. 15, 2003, when there was a
demonstration in London against
the invasion of Iraq, Mr. McEwan
cleverly challenges his character’s
agency and political engagement:
“Does he think he’s contributing
something, watching news pro-
grams, or lying on his back on the
sofa on Sunday afternoon, reading
more opinion columns of un-
grounded certainties, more long ar-
ticles about what really lies behind
this or that development, or about
what is most surely going to hap-
pen next, predictions forgotten as
soon as they are read, well before
events disprove them?” Perowne is
friends with an exiled Iraqi profes-
sor, so he is well aware of the hei-
nous nature of Saddam Hussein’s
regime but less clear than his chil-
dren are that the war is a mistake.
Those Who Leave and
Those Who Stay
By Elena Ferrante (2013)
5
IN THE THIRD novel in Elena
Ferrante’s Neapolitan quartet,
literary fiction is characterized
as frivolous and bourgeois in com-
parison with the student activism of
1970s Italy. The character Elena finds
her first novel dismissed by her rev-
olutionary friends as “an insignifi-
cant little thing” but still perseveres
in using words to challenge misog-
yny and patriarchy. Elena’s childhood
friend, Lila, works in a sausage fac-
tory and becomes more actively in-
volved in violent political protest.
She sees youths tearing down post-
ers and attacking the students who
put them up, punching one of them
in the face “with no warning, knock-
ing him to the ground amid the leaf-
lets he had dropped.” Then she
watches “while the pages flew
around as if there were a fierce ex-
citement in the things themselves.”
She is brutally honest about the
roles assigned to and embraced by
women at the protest meetings:
“The few girls, who were mostly si-
lent, flirted eagerly.”
Methodology
NPD BookScan gathers point-of-sale book data from
more than 16,000 locations across the U.S.,
Print-book data providers include all major
booksellers (now inclusive of Wal-Mart) and Web
retailers, and food stores. E-book data providers
include all major e-book retailers. Free e-books and
those sold for less than 99 cents are excluded. The
fiction and nonfiction lists in all
formats include adult, young adult, and
juvenile titles; the business list
includes only adult titles. The combined
lists track sales by title across all print
and e-book formats; audio books are excluded. Refer
Hardcover Business
TITLE THIS LAST
AUTHOR / PUBLISHER WEEK WEEK
Strengths Finder 2.0 1 1
Tom Rath/Gallup Press
The Five Dysfunctions of a Team 2 2
Patrick M. Lencioni/Jossey-Bass
Black Edge 3 New
Sheelah Kolhatkar/Random House
Emotional Intelligence 2.0 4 5
Travis Bradberry & Jean Greaves/Talentsmart
Together is Better 5 –
Simon Sinek/Portfolio
Total Money Makeover 6 3
Dave Ramsey/Thomas Nelson
Extreme Ownership 7 4
Jocko Willink & Leif Babin/St. Martin’s Press
The Ideal Team Player 8 7
Patrick M. Lencioni/Jossey-Bass
The 4-Hour Workweek 9 10
Timothy Ferriss/Crown Publishing Group (NY)
10 9
Jim Collins/HarperBusiness
 For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
THE WALL STREET JOURNAL.
AMANDA FRIEDMAN FOR THE WALL STREET JOURNAL
WEEKEND CONFIDENTIAL: ALEXANDRA WOLFE
Octavia Spencer
The Oscar-nominated
actress has moved on
from playing nurses
ACTRESS Octavia Spencer is one
of six black actors nominated for
an Academy Award this year—up
from zero last year. It may be
progress, but she’s far from satis-
fied with the state of diversity in
Hollywood. “There have to be
more Asian stories that are told,
there have to be more Latino sto-
ries that are told,” she says. “If
we ask the viewing audience to
support these movies with their
dollars, they sure as hell should
MOVING TARGETS: JOE QUEENAN
Warning: The ’60s Are Breaking Out Again
IN AN UNNERVING SIGN that the
Nostalgia-Industrial Complex is
alive and well, New York City’s
Carnegie Hall has announced a
2018 series that will allow the pub-
lic to relive the 1960s. Serving as
adviser to the hall is Robert Caro,
the distinguished historian who re-
ally ought to know better. For as a
great philosopher once observed,
those who cannot remember the
past are condemned to hear “Puff
the Magic Dragon” forever.
Proceeding from the assumption
that someone out there hasn’t
heard enough about the Beatles,
the Kennedys, the civil-rights
movement, Woodstock and LSD,
the series will include a concert of
protest songs featuring David
Crosby of the precociously geriat-
ric Crosby, Stills & Nash, as well as
a program fusing film, photos and
music to discuss the Vietnam War.
As Sammy Davis Jr. used to say:
“Man, if that don’t turn you on,
* * * *
be able to see themselves repre-
sented on film.”
Ms. Spencer, 46, was nomi-
nated for best supporting actress
in “Hidden Figures,” in which she
plays one of the little-known
black female NASA mathemati-
cians who helped the first U.S. as-
tronauts to reach space.
She was also nominated in
2012, when she won the Oscar for
her role as a defiant maid in “The
Help,” based on Kathryn Stock-
ett’s novel set in 1960s Missis-
sippi. Her other credits range
from comedy (“Bad Santa,” 2003)
to drama (“Fruitvale Station,”
2013) as well as parts on televi-
you ain’t got no switches.”
If nothing else, these fab, trippy,
retro-groovy events may help to
definitively establish where, in fact,
all the flowers have gone, long time
passing. All or some of them may
be returning to the Carnegie stage
for a round of applause. Which
brings to mind the old joke: How
do you get to Carnegie Hall? Prac-
tice, practice, practice. Except
here the response is: Remi-
nisce, reminisce, reminisce.
“The ’60s: The Years That
Changed America,” the name
of the Carnegie Hall program,
is emblematic of an emotional
sclerosis that has afflicted this
country for some time. As William
Faulkner might have put it, the
past ain’t dead, it’s Grateful Dead.
The series is yet another sign of
the multitudinous Baby Boomers’
refusal to get off the stage, to shut
up for five seconds about Janis,
Jimi and Jim. It proceeds from
REVIEW
sion series such as “Ugly Betty”
(2007).
Ms. Spencer was born in Mont-
gomery, Ala. Her father died when
she was 13, and her mother, a
maid, died when she was 18. She
says that she always wanted to be
an actress. Her first experience in
the movie business was interning
as a production assistant at age
19 on the 1990 historical drama
“The Long Walk Home,” starring
Whoopi Goldberg and Sissy
Spacek.
As soon as the filmmakers
came to town, she was deter-
mined to be a part of the produc-
tion. “It’s not normal that a movie
A Carnegie Hall
series sparks
fears of possible
hootenannies.
Saturday/Sunday, February 18 - 19, 2017 | C11
‘People get in
their minds an
idea of you
and what you
should be.’
is filmed in my hometown, so I
just called and called and called,”
she remembers. “I was persistent
in getting a job…and they hired
me, and I made myself useful.”
After graduating from Auburn
University, where she majored in
English and minored in theater
and journalism, Ms. Spencer got
her first speaking role in “A Time
to Kill,” a 1996 crime drama star-
ring Matthew McConaughey and
Sandra Bullock. She told director
Joel Schumacher that she wanted
to play the part of an African-
American protester who gives the
signal for a riot to start against
Ku Klux Klan members. “Joel told
the insane assumption that the
1960s have somehow been over-
looked, underappreciated, perhaps
even slighted.
Some decades don’t get the at-
tention they deserve. Some simply
don’t measure up. No one ever
talked about the ’10s the way they
gushed about the Roaring ’20s and
the Nifty ’50s. Obviously, the Ti-
tanic and World War I were a lot
less fun than the Charleston and
Elvis.
Other decades just get dissed.
The ’70s have always been
viewed as a joke, while the long
shadow of Duran Duran and the
hair bands forever darkened the
’80s. No one can remember any-
thing that happened in the ’90s.
Oh yes, the Backstreet Boys.
The Boomers have also been
very successful in glossing over the
fact that the ’60s were basically
miserable, with father pitted
against son, white pitted against
me that my face was too sweet
for that role,” she says. Instead,
he cast her as a nurse.
The role stuck. She has since
played a nurse 15 more times, in-
cluding one-time parts on the TV
series “Chicago Hope” and “The
X-Files” and in the 2013 film
“Lost on Purpose.” “People get in
their minds an idea of you and
what you should be, who you are
as a person and what your physi-
cality means—and what you
should play based on that,” she
says. “I was happy to get those
jobs, but now it’s about not allow-
ing myself to be seen only as one
thing.”
Her breakout part was as the
maid Minny Jackson in “The
Help.” When Ms. Spencer first
read the script for “Hidden Fig-
ures,” she hadn’t heard about the
black female mathematicians who
had worked on the space program
and assumed the story was histor-
ical fiction, like “The Help.”
“When I found out it was real, I
felt that much more compelled to
play the role,” she says. “How is it
possible that these women make
these contributions and they are
largely unknown in our society?”
She hopes that the story will
encourage more women and mi-
norities to go into the sciences,
where they are underrepresented.
“For me, it’s about influencing
the next generation of young girls
in science, technology, engineer-
ing and math,” she says. “It’s
about influencing them and let-
ting them know that dream is
available to them.”
Next, she will play the role of
God in “The Shack,” based on Wil-
liam P. Young’s 2007 novel about
a man who becomes depressed af-
ter a tragedy and gets help from
three characters who are interpre-
tations of the Holy Trinity. Ms.
Spencer, as God, is named “Papa.”
Preparing for the role was a chal-
lenge, she says: “I knew that I
couldn’t approach [the role] as
God,” she says. Instead, she ap-
proached it as a parental figure.
Ms. Spencer, who isn’t married,
lives in Los Angeles. In her down-
time, she likes to watch TV shows
such as “Black-ish” and “Game of
Thrones” and enjoys reading
thrillers and crime capers. She
also writes children’s books. She
has published two installments in
a series about a 12-year-old ninja
detective named Randi Rhodes.
She would like to produce and
direct more films of her own. She
has already helped produce two
feature films, including “Fruitvale
Station,” based on the true story
of a young black man who was
shot and killed by a transit police
officer in Oakland, Calif., and she
has directed two short films. “My
role that I’m destined to play is
that of a producer helping under-
served voices to [get on] screen
from communities that are under-
served,” she says.
Last year, she signed on to pro-
duce and star in a miniseries
based on the book “On Her Own
Ground” by A’Lelia Bundles, about
the African-American entrepre-
neur Madam C.J. Walker. In the
early 1900s, Walker became one
of the wealthiest women in the
country by developing a line of
beauty and hair products for
black women.
“My job is not to fixate on the
‘why’ ” behind the lack of diver-
sity, she says, “but more so on the
‘how I can change that.’ ”
black, young pitted against old.
The only fun thing about the ’60s
was the music. Well, the music and
maybe the drugs.
The Carnegie Hall series is a dis-
turbing portent. Might a subse-
quent series include a return by
truly sinister entities like the New
Christy Minstrels or the Cowsills?
Where David Crosby lurks, can
Arlo Guthrie be far behind? The
dire echo of long-forgotten hoote-
nannies can already be heard
thrumming in the winter stillness.
Performers sometimes have the
common decency to retire. Many
bands have already mercifully re-
treated into the shadows of night,
giving youngsters like Lady Gaga a
chance to become as ubiquitous
and culturally asphyxiating as
Cher. In the words of the immortal
NISHANT CHOKSI
song “Wooden Ships,” recorded by
both CS&N and Jefferson Airplane,
“We are leaving, you don’t need
us.” Right on.
 For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
C12 | Saturday/Sunday, February 18 - 19, 2017 * *** THE WALL STREET JOURNAL.

REVIEW
PLAYLIST: DAVID MONN ASK ARIELY: DAN ARIELY
Daydream Achiever
A Regina Belle ballad inspires a high-concept
Default Is in Our Stars
event planner to free his imagination
Dear Dan,
David Monn, 53, has staged high- ming along to the notes. Then she I know that people are more likely to
concept events for the White begins to sing, and the lyric per- make smart decisions—about, say,
House, private parties and cul- fectly expressed how I had felt contributing early and often to a re-
tural institutions, including New since childhood: “Tired of living tirement savings fund—if they’re
York’s Metropolitan Museum of life in black and white / There’s so nudged into it by default settings.
Art. He is the author of “The Art much in between / Like a rainbow How powerful is this effect? Do de-
of Celebrating” (Vendome). He in the sky / Crying to be seen.” faults push people a bit or change
spoke with Marc Myers. A choir joins behind Belle as their choices dramatically? —Tom
I grew up poor in Fayetteville, her voice builds toward a cre-
Pa. I was the fifth of six children, scendo in the final chorus: “Show You’ve put your finger on one of
and all of us were me a child who the key findings of behavioral eco-
squeezed into a never has seen / A nomics. Shlomo Benartzi and Rich-
two-bedroom A song gives vision that shows ard Thaler, among others, pro-
house. Most of my
days were spent
’permission what his life really
means / I’ll give you
duced probably the field’s greatest
success by encouraging employers
daydreaming, much to let my so many good rea- to create retirement benefits pack-
to the disappoint- mind sons / To capture a ages whose default options are set
ment of my parents dream.” for savings. Such packages used to
and teachers, who wander.’ Little by little, I require employees to enroll if they
felt daydreaming expanded my social wanted to start saving. By switch-
was idle thought. circles in New York. ing the default, so that employees
Not until I heard In 2002, Gayfryd were automatically enrolled and
Regina Belle’s “DREAM IN Steinberg asked me to plan a ma- had to act if they wanted to stop
COLOR” did I feel vindicated. jor philanthropic event. She had putting aside money, saving rates
I left home for the first time in faith in me. The event was a suc- increased dramatically. RUTH GWILY

1981. I had been accepted at New cess, and the following year, I But what effect does changing the
York’s Parsons School of Design, started my own event-planning default setting have compared with other incentives have anything to do with it? —Kevin
but I never attended. My father company. to save? Take a recent study by Michael Callen,
wouldn’t let me take out a stu- “Dream in Color” gave me per- Joshua Blumenstock and Tarek Ghani. They worked Several forces were probably at work. First, some
dent loan. He didn’t be- mission to let my mind wander. with Roshan, a mobile communications provider in all-inclusive vacations aren’t clear about tips, which
lieve in borrowing. When creating events, I wanted Afghanistan, to create a savings plan for its 1,000- may incline us to think gratuities are covered. Sec-
So I worked in a sew- guests to experience my day- person workforce. Half the participants were given a ond, remember the saying: “What happens in Vegas
ing factory in my home dreams made real. default of “opt in” (and had to call to leave the stays in Vegas.” When we travel, we become
town, which led to a Today, I daydream during plan), and the other half was defaulted to “opt out” slightly different versions of ourselves—and can act
job at a dressmaker in my daily 7-mile run. I visu- (and had to call to start saving). more freely without tainting our own reputations,
New York. Then, in alize everything for an The researchers wondered how much changing at least in our own eyes. Finally, immorality often
the early ’90s, I event. Then my ideas are the company’s matching level and the employees’ stems from our ability to convince ourselves that
worked for a jew- relayed to drawings and default settings would increase savings. They found we’re doing something OK—even if we know that
elry manufacturer realized. It turns out that automatic enrollment had about the same effect we’d want people to behave better if we were on
that sold to mass- daydreaming wasn’t on participation as providing the pricey incentive of the receiving end.
market retailers. such a waste of a 50% matching contribution from the firm. Default
Though I was time after all. settings, they concluded, are powerful indeed—per- Dear Dan,
successful, I was haps not enough to make businesses stop matching I’m often flummoxed by long restaurant menus, so
miserable. One contributions for their workers, but more than I’ll pick a familiar dish—and feel that I haven’t got-
day, my friend enough to make them sweat the default details. ten the most out of my dining experience. Any dining
Marilyn gave me advice? —Tom
Regina Belle’s Dear Dan,
“Passion” album. On vacation in Mexico, I saw a hardworking Trying new things makes life more interesting, but
When I heard “Dream in server waiting on guests at a resort—who didn’t the fear of making mistakes can drive us to play it
NBCU/GETTY IMAGES

Color,” everything REGINA BELLE leave a tip. I can’t imagine they would have be- safe. Restaurants are great places for a risk. The
changed. performing on TV in haved this way in our native Canada. Did the fact most you can lose is one meal, and you can always
The power ballad May 1993. that they had pur- ask for something else if you hate your adventurous
opens with a gospel chased an “all-in- Have a dilemma for Dan? dish (just tip well). So I often ask the waiter for the
piano and Belle hum- clusive” vacation Email AskAriely@wsj.com. most unusual dish on the menu.

WSJ TALK / E XPERIENCE / OFFE R / GE TAWAY

February Introducing ten new titles to read this month.

Choose from brilliant 1960’s civil rights

Books
movement stories and complex fiction, along
with titles recommended by WSJ editors.
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 For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
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THE WALL STREET JOURNAL. * * * * Saturday/Sunday, February 18 - 19, 2017 | C13

PLAY
NEWS QUIZ: Daniel Akst From this week’s
Wall Street Journal VARSITY MATH Provided by the National Museum of Mathematics

1. Fast-food exec Andy Puzder are more likely to inspire original It’s Coach Newton’s birthday this week and the team
thinking at their companies? celebrates by offering him some birthday math trivia and puzzles.
withdrew as President
Donald Trump’s
secretary of
A. Gourmet cooking
labor nominee.
B. Collecting stamps
What was the
C. Playing chess
problem?
D. Flying a small plane

A. His green
card expired. 6. Motor-vehicle deaths surged

B. He had inad- for the second year in a row,
equate congressional support. breaching what threshold in

C. He and Democrats differed 2016?
over the fate of OSHA.

D. A blogger found photos of
A. 4,000
Mr. Puzder at Club Med with
B. 40,000
Vladimir Putin.
C. 400,000

D. Four million
In Your Prime
2. An environmental group sued One of the students jokes with the coach, “You
when the government delayed en- 7. The American College of know, you’re not really in the prime of your life.”
dangered-species status for a bee. Physicians says what should be “What do you mean?” asks Coach Newton. “Well, we
What type? the last resort in dealing with noticed that the greatest number of prime ages that
lower-back pain? can occur in one round decade of your life is four,

ILLUSTRATION BY LUCI GUTIÉRREZ

A. The spelling bee such as 2, 3, 5 and 7 in the first decade of your life,

B. The quilting bee
A. Chiropractic care and 11, 13, 17, and 19 in your teens. Although you

B. Ibuprofen are near the beginning of a new decade in your life,

C. The western honey bee it’s not one of those ‘prime decades’ with four prime

D. The rusty patched bumble-
C. Opioids
ages.“ ”Oh, that’s OK with me,” chuckles the Coach.
bee
D. LSD
What is the next prime decade after
one’s teen years?

3. The European Union approved 8. What seems to help people

a preferential trade deal—with avoid a long-term earnings drop
after a job loss, according to a For previous weeks’ puzzles, and to discuss strategies with other solvers, go to WSJ.com/puzzle.
which country?
new Cleveland Fed study?
Some Difference

A. Turkey If you add up the two-digit year that somebody was example, somebody born in 1968 on Feb. 18 would have a

B. Russia
A. Getting an additional born, the number of the month of their birthday birthday sum of 68 + 2 + 18 = 88.

C. Canada degree from 1 to 12, and the day of the month of their What’s the largest possible difference between birthday

D. Mexico
B. Losing at least 10% of their birthday, we’ll call that their “birthday sum.” For sums of people born on consecutive days?
body weight

C. Living near their parents
4. Former SEC chief Mary Jo
D. Owning a cat + Learn more about the National Museum of Mathematics (MoMath) at momath.org

White took a job at a law firm.

SOLUTIONS TO LAST WEEK’S PUZZLES
FROM TOP: BLOOMBERG NEWS; ASSOCIATED PRESS

Which one?
9. A German shepherd won top
prize at the 141st annual Varsity Math A+ Acrostic

A. Debevoise & Plimpton For Doubled Digit,

B. McKenzie, Brackman, Westminster N O R A S A S S H A D A T D R AW (Robert) Moor, “On Trails: An Exploration”—“One of
only the digit 3 O R E L C R A T E O L I V E O A T H the chief pleasures of the trail is that it is a rigidly
Chaney and Kuzak Kennel Club appears twice D E E P F R I D A Y N E V E R MO R A Y
Dog Show. S O F A B E D L E G S A R MO R E D bound experience. Every morning, the hiker’s options

C. Skadden, Arps, Slate, when seven to the C I A A L L A H I B M
are reduced to two: walk or quit. Once the decision is
Meagher & Flom What’s the 11th power is P
A
A
B
P A MO
E H
V I E
O O T
B U
S
F F E T
L U N E
A
T
T
O
M
O
S
N made, all the others...fall into place.... The newfound

D. Jacoby & Meyers winner’s written in base L E T S D A WN S C O L D S U S O
freedom from choices comes as an enormous relief.”
M A T A D O R S A Y S O MA C H O
name? nine, and 624 is S T Y L I Z E S W I N D OWS A C H E T
C A G E E L I T I S M K N O T
the smallest L E A D I N G MA N E T E M I G R A T E A. Mountaineer; B. Odysseus; C. Out of whack;

A. Rumor number with two I N C A N R I M E S E T O N I A N D. Riflemen; E. Odalisque; F. Newt Gingrich;
5. According to a new study, A S H G A T E S B E A N S S P U D

B. Whi- different copycat R U E S O T I S C E L L O E P I G. “Tootsie”; H. Roswell; I. Arriviste; J. Ice cream
CEOs besotted with which hobby bases for last S E T I V A C A N T L A T T E D I E T
cone; K. Lesotho; L. Solstice; M. Affirmed; N. Needle;
sper N Y E G R I P E V E E
week’s Frequent S T U A R T S U S E S B E L F A S T O. Escape hatch; P. Xenophobic; Q. Perrier; R. Lymph
To see answers, please
C. Innuendo Figures.
P O I S O N O K A Y F I N A L F O R A Y
nodes; S. Off the hook; T. Reuters; U. Adhered;
R U N E O N I C E S N A K Y R E I N
turn to page C4.
D. Hearsay O P T S R I P E N GWE N M A L E V. Tea oil; W. Infiniti; X. Of late; Y. Nate Thurmond

THE JOURNAL WEEKEND PUZZLES Edited by Mike Shenk

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 38 Josh
40 Head for the
18 19 20
hangar 1 2 3 4 5 6 7
21 22 23 24 41 Plant
43 Insurance co.
25 26 27 28 29 30 31 bailed out in 2008
32 33 34 35 36 45 Mission founder
Junipero 8 9 10 11 12 13 14
37 38 39 40 41 42 43 47 “Jazz Profiles”
44 45 46 47 48 station
48 Flowers that
49 50 51 52 yield saffron 15 16 17 18 19 20 21
53 54 55 56 57 58 59 60
49 Basque Country
metropolis
61 62 63 64 65 52 Room in Clue
with a secret 22 23 24 25 26 27 28
66 67 68 69 70
passage to the
71 72 73 74 75 76 Conservatory
53 Gets bent?
77 78 79 80 55 Mantle’s cover
58 Beginning 29 30 31 32 33 34 35
81 82 83 84
60 Verizon
85 86 87 88 89 90 91 92 93 94 forerunner
95 96 97 98 99 63 Faith espoused
by Voltaire 36 37 38 39 40 41 42
100 101 102 103 104 105 64 Ali with a perfect
record in the ring
106 107 108 109 110
68 Unable to sit still
111 112 113 114 115 69 Revolutionary
116 117 118
act Curly Quote | by Patrick Berry
72 Show honors
119 120 121 76 Armored beast of Each answer in this grid is seven 1 “Just Married” car 20 Airline pass on one’s
old letters long and forms a “curlicue” attachments (2 wds.) smartphone (Hyph.)
79 Some Core i7 in the grid, occupying the
Heading South | by Jeff Chen runners 2 Make an off-the-books 21 Dupe (Hyph.)
correspondingly numbered space
Across 49 Give, but 89 Monogram on Down 82 It occurs in Q3 and the six spaces that surround it purchase (2 wds.) 22 Logical place to build a
1 Light a fire under stubbornly some designer 1 Black Widow 84 Computing as shown at left. 3 Regardless of radio tower
50 Component of clothes pioneer Lovelace Either the first 23 Like Little Orphan Annie
7 Needle point portrayer, in
85 Outfit you’re not
4 Dr. Watson’s portrayer in
many a 90 It often follows tabloids letter or the last
12 Pranksters likely to wear out the 2009 film “Sherlock 24 Camping sticker? (2 wds.)
presidential “Goodnight 2 Full of holes
18 Cost in total letter of the answer should be Holmes” (2 wds.)
candidate’s Moon”
3 Loafing
86 Action followed
placed in the numbered space. The
25 Kings and queens, e.g.
19 Baking platform 95 Pinkett Smith of by a “Safe!” call
byproduct 4 Yank’s foe remaining letters can read either 5 Court sport watched by (2 wds.)
51 Fit for a queen TV’s “Gotham” 87 “Sweet ___”
20 Ric of the Cars 5 Attraction (barbershop clockwise or counterclockwise, gamblers (2 wds.) 26 “We don’t have all day!”
53 Game aim 96 Track star
21 Submission Devers displaying diverse quartet standard) connecting to the central letter 6 African language that (2 wds.)
54 Keystone site flora
move in mixed 88 Shakespearean through the gap in the heavy black “safari” is taken from
martial arts
56 Wrath 98 Informal
6 Grammy’s 2002 27 It’s coldblooded
57 Entertaining greeting fairy queen hexagon. Each answer has four 7 Colloquial greeting (2 wds.)
22 Having the 99 Heist haul
Best New Artist 91 Check out possible arrangements, as shown
28 Trailer with no sides or roof
sort Jones
hot hand, in
59 Male delivery 100 Awaits a verdict, 92 “The king of with the answer CURLING below. 8 Parking lots for yachts 29 State capital on Puget
basketball lingo 7 Photographer
61 Priest’s robe maybe
Goldin
knots” U R U G N C N I 9 Geographic region that Sound
24 Deets 102 Fromagerie 93 Civil rights
25 Padma’s date to 62 Went awry 8 “Carmina Burana”
G C L R C N I G U C G L includes Silicon Valley 30 Best obtainable result
choice activist King N I L I L R U R
the Hogwarts 64 Weapon tended composer
94 “Independence
(2 wds.) 31 Raked over the coals
to by a squire 104 French pop As a solving aid, the top and
Yule Ball 9 Dissolute fellow Day” visitors 10 The Dalai Lama, for one (2 wds.)
65 Join the bulls 105 New Year’s bottom rows of the grid will
26 Grams events 10 Capone foes 97 Work together
66 Stat resulting 11 Crone contain the same sequence of 11 Libertine of legend (2 wds.) 32 Golf club with the longest
28 Waterlogged 106 Delight 98 Exclamation from
region from a solo shot 12 Kramer’s first letters reading left to right. When 12 Talk show host who wrote range (2 wds.)
108 Did a little of a real ass
29 Piece in many 67 Queasy feeling name on the grid is filled, the letters in the “Leading With My Chin” 33 Misfit in a statistical model
this, a little of 101 Tool for a razor’s
an organist’s 69 Sinks, as a short that “Seinfeld” edge numbered spaces will spell a quote (2 wds.) 34 Pension collector
repertoire putt 13 Showing a profit from Machiavelli.
110 Company with 103 Portrayer of 13 Fruit in a Floridian dessert 35 Locked down
31 Uncanny ability 70 Rustic lodgings a Supercharger when others are the Clampett
32 Growler, e.g. 71 Optional network losing money, say patriarch (2 wds.) 36 Adverb in a Rhett Butler
33 Exchanges Medicare 111 One of the three 14 ___ chi 104 “Allegory of the 14 Pixel-based graphics quote
pleasantries coverage small ear bones 15 Sales rep’s Cave” philosopher
73 PR person’s forte handouts
15 Charlie Parker’s instrument 37 Warrior of feudal Japan
35 Free-fall 113 Basketball Hall 105 Brought forth,
experience 74 Sagacious of Famer Thomas 16 Literary reflection, biblically
(2 wds.) 38 People who know the town
36 “Didn’t I tell you?” 75 Canal sight 114 It might facilitate from the French 107 Official currency 16 Early walker 39 30,000-word story, say
37 Home of the 77 “Same here!” personal growth for “thought” of Vatican City 17 “Hey, hands off!” (3 wds.) 40 Come down with
Shinsaibashi 78 Chuck Yeager, 116 Woman with 17 Had some face 109 Leader of seven
shopping area notably trouble opening time, in a way animals 18 2008 film featuring something (2 wds.)
39 Flying 80 The Dow, for one up? 22 Accomplishing an migrating south a character named 41 Group that’s always on
annoyance 81 Org. for people 117 Perfect Sleeper NFL bettor’s goal in V formation Pepper Potts (2 wds.) someone’s case? (2 wds.)
41 May honorees who like packing seller 23 “Queen” megahit 110 Mug shaped like 19 Knives and forks 42 Planet with no moons
42 Gave a real 83 “Skedaddle!” 118 Teems 27 Chronic critic a stout fellow
shock? 84 Container made 119 Senior’s blotch 30 History book nos. 111 Hydrotherapy
Get the solutions to this week’s Journal Weekend Puzzles in next
s

44 Palette contents of two-by-twos? 120 Provide with a 34 Ramirez of setting

46 Nature Valley 85 Say “What could generous sum, “Grey’s Anatomy” 112 Butter unit Saturday’s Wall Street Journal. Solve crosswords and acrostics
offering you possibly be perhaps 35 Chronicler of the 114 Butter? online, get pointers on solving cryptic puzzles and discuss all of the
48 In talking about?” 121 “It’s on me!” Dreyfus Affair 115 Ballpark fig. puzzles online at WSJ.com/Puzzles.
 For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
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C14 | Saturday/Sunday, February 18 - 19, 2017 * *** THE WALL STREET JOURNAL.

REVIEW
JOHANNES VERMEER
painted ‘The Milkmaid’
around 1657-1658.

married, “so ter Borch might have even been at the

wedding,” says Friso Lammertse, curator of old-
master paintings at Rotterdam’s Boijmans Van Be-
uningen Museum.
Ter Borch crisscrossed Europe, visiting England,
Rome and Germany, before settling down in the
eastern Dutch town of Deventer, less than 90 miles
from Vermeer’s hometown of Delft. As for Vermeer,
he remained in Delft, supplementing his income
from painting by dealing art.
“I am very much struck by the role of ter Borch,”
says Mr. Ducos. Though he is hardly a household
name, the curator adds, ter Borch was an innovator
in the refined style we now associate with Vermeer.
It was ter Borch, along with Gerrit Dou, who gave
Dutch genre painting an
A third of elegant upgrade starting
in the 1650s, supplement-
the artist’s ing pageants of everyday
work is peasant life with “high-
life” scenes featuring
on view. well-dressed figures in a
sophisticated back-
ground. Vermeer’s pearl-
wearing heroines and sumptuous interiors would
follow in a matter of years.
The 70 paintings of the Louvre show—which
runs until May 22, travels to Dublin and then
moves on Oct. 22 to Washington’s National Gallery
of Art—are grouped by subject matter, ranging
from mirror gazing to music playing.
A group of letter-writing paintings includes ter
Borch’s “Woman Writing a Letter” (circa 1655-56)
which shows a bejeweled woman concentrating on
her task. Another is Metsu’s 1662-64 “Woman Writ-
ing a Letter,” which features an equally wealthy
subject who looks up, apparently surprised. A third
is Vermeer’s 1665-67 “A Lady Writing,” in which an
ermine-clad woman also gazes at the viewer. Ar-
thur Wheelock Jr. of Washington’s National Gallery,
a noted Vermeer expert who co-curated the show,
says the Vermeer heroine’s “distinct facial features”
blur the boundary between genre painting and por-
THE RIJKSMUSEUM, AMSTERDAM

traiture.
“Everybody knew that artists” like ter Borch, de
Hooch, Metsu and Vermeer were “visually related,”
but the question has always been how much, says
Mr. Lammertse. Until now, he says, he has tended
to think that the use of recurring subject matter
like women letter-writing or lute-playing “was just
the fashion of the time.”
But the Louvre show will give us “another idea
about these artists,” Mr., Lammertse says, adding:

A Portrait of dense network of painters cribbing from and riffing

off each other.
“You can only really see how they copied each other
when they are all together in an exhibition.”

VERMEER
This new version of the old master (1632-75) is
less “the Sphinx of Delft”—what the painter’s redis-
coverer, Théophile Thoré-Bürger, called him—than
one of the boys.
“Vermeer and the Masters of Genre Painting,”
which opens next Wednesday at the Louvre, brings
together a dozen Vermeers—a third of his surviving
works—and compares masterpieces like “The Milk-
Another grouping is called “Private Vanity.” In the
early 1650s, ter Borch painted “Young Woman at Her
Toilet With a Maid,” showing a woman adjusting her
bodice, possibly contemplating the prospect of adult-
hood while her maid looks at her mistress’s reflec-
tion in a mirror. The painting—on loan to the Louvre
show from New York’s Metropolitan Museum—cap-
tures a private moment in a darkened bedchamber.

As One of the Boys maid” and “The Lacemaker” with related works by
contemporaries. “Everybody singles out Vermeer as
the great genius of the period,” says Blaise Ducos,
The ter Borch hangs with a more classical Ver-
meer, on loan from Berlin’s Gemäldegalerie and
painted in the mid-1660s. In “Woman with a Pearl
the Louvre’s curator of Dutch and Flemish paintings Necklace,” Vermeer has set a scene related to the ter
An exhibition BY J.S. MARCUS
of the 17th and 18th centuries. “But he is actually at Borch work in a light-filled room, showing a mature
shows the the very end of a long chain.” woman before a mirror, standing in an erect and
THE 19TH-CENTURY FRENCH ART CRITIC who re-
Dutch master discovered the Dutch painter Johannes Vermeer re-
The contemporaries include Pieter de Hooch, Ger-
rit Dou, Gabriel Metsu and, especially, Gerard ter
timeless pose more associated with grander biblical
or historical scenes than genre painting.
riffing off garded him as a mysterious outlier—and he’s often Borch. Born 15 years before Vermeer, ter Borch knew Reflecting on the newer portrait of Vermeer as a
the work of viewed that way today. A new exhibition opening in
Paris and traveling on to Washington, D.C., takes a
the younger painter. In Delft in 1653, they co-signed
a document involving somebody else’s financial debt.
face in a bigger artistic crowd, Mr. Lammertse says
that the artist “may still be the most beautiful, but
others different view, reintroducing Vermeer as part of a The event took place a few days after Vermeer got he might not be the most original.”

MASTERPIECE: ‘FIRST READING OF THE EMANCIPATION PROCLAMATION OF PRESIDENT LINCOLN’ (1864) BY FRANCIS B. CARPENTER

Transforming Him From Politician Into Statesman

BY HAROLD HOLZER
BEFORE THE AGE of White House photographers, the surest
way for a president to make visual history was to pose for he-
roic portraits destined for honored places in public spaces.
For all his cracker-barrel modesty about his homely appear-
ance, Abraham Lincoln proved remarkably willing to make
himself available to painters and sculptors. This proved espe-
cially true after he signed the Emancipation Proc-
lamation on Jan. 1, 1863.
A few weeks later, Lincoln granted painter Ed-
ward D. Marchant three months at the White
House to reimagine the moment, eager to cooper-
ate once told the picture would be displayed at In-
dependence Hall. The finished canvas, however,
never made it to the hallowed site.
That did not discourage Lincoln from welcom-
ing 33-year-old artist Francis B. Carpenter, who
arrived in Washington in early 1864 determined to
paint the president reading the first draft of his
proclamation to his cabinet. The project seemed
so grand in scale that surely it occurred to artist
Brady’s gallery to arrange photographs he could use as models
(and which themselves became classics, with adaptations adorn-
ing coins and currency). Later he summoned a Brady camera-
man to take the first photographs ever made of a president in-
side the White House. Though imperfectly developed (Lincoln’s
impish son, Tad, hid the darkroom key), they show Lincoln at
the very cabinet table where he first read his proclamation—and
where, some five months later, he signed it.
Carpenter then set up a 9-by-15-foot canvas in the State Din- Though he cleverly placed cabinet progressives on the left, con-
The painting created a sensation on an extended national
tour, hauled from city to city on a collapsible frame. Eventually,
the picture did make it to the Capitol, but was relegated to—and
remains—on the wall above the stairway leading to the Senate
gallery. Its chief fame accrued from a superb engraved adapta-
tion that adorned walls and books for generations.
To be sure, Carpenter’s painting is flawed. The artist over-
worked his Lincoln portrait until it became expressionless.
servatives on the right, and Lincoln as the force at
the center, he focused all eyes not on the president,
but on Secretary of State William H. Seward—Car-
penter’s upstate New York neighbor. Thus he inad-
vertently immortalized the moment Seward pro-
posed postponing, not enacting, the proclamation.
But Carpenter alone
dared show executive
An image
government as it really
aimed at
worked, grinding the
wary voters.
sausage of policy into
what Lincoln called “the
greatest act of the 19th
century.”
U.S. SENATE COLLECTION

and subject that the result might fit nicely inside
the U.S. Capitol Rotunda alongside nation-defining
works by Trumbull and Vanderlyn. “I wish to
make it the standard authority for the portrait
of…Mr. Lincoln,” Carpenter proclaimed, “as it is
the great act of his life by which he will be re-
membered and honored through all generations.”
Carpenter felt an “electric thrill” when he first
glimpsed the “haggard-looking” president towering above a
throng at a White House reception. Lincoln shouted merrily
at him: “Do you think, Mr. C___, that you can make a hand-
some picture of me?” Carpenter was half Marchant’s age,
with a fraction of his reputation, but Lincoln turned him
“loose” in the mansion for twice the time his predecessor en-
joyed. The result became a national icon.
The artist aspired to portray “that band of men, upon whom
the eyes of the world centered as never before,” with Lincoln
“solemnly announcing” that the time for emancipation “had ar-
rived.” Granted full “access to the official chamber,” Carpenter
made countless preparatory sketches of décor, accessories, and
the men he planned to portray. He took the president to Mathew
The image not only illustrated emancipation,
but enhanced its appeal to a wary voting public.
Subsequent interpretations might show Lincoln
symbolically breaking the shackles on enslaved
blacks, but Carpenter found a massive audience by
celebrating philanthropic white men working in
THE ARTIST WORKED on the 9-by-15-foot canvas for six months. behalf of black freedom.
Carpenter secured further fame by publishing
ing Room, where he created his final oil. Placed on display there a memoir of his “Six Months at the White House,” now a pri-
in July, the finished painting attracted “considerable attention,” mary source for the Lincoln presidency. But when he retitled
though newspaperman Noah Brooks lamented its “rawness, lack his book “The Inner Life of Abraham Lincoln,” the president’s
of finish, and commonplaceness—such as might be expected in widow dismissed Carpenter as a “stranger” and “silly adven-
the work of a young artist who has grappled with a subject so turer” who had “intruded frequently into Mr. L’s office.” A
difficult.” As Brooks conceded, a “group of men, wearing the good thing he did, for as Mary Lincoln had admitted a year
somber-hued garments of American gentlemen, assembled in a earlier: “I have always regarded the original painting as very
plainly furnished apartment, though earnestly discussing a mat- perfect.” Carpenter transformed Lincoln’s image from politi-
ter which is now historic, does not furnish a tempting subject cian to statesman.
for the tricks and bewildering cheats of art.”
Lincoln thought otherwise. He told Carpenter his effort was
“as good a piece of work as the subject will admit of…and I am Mr. Holzer, winner of the 2015 Lincoln Prize, is director of
right glad you have done it.” the Roosevelt House Public Policy Institute at Hunter College.
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com

Samantha A Rolls Royce for

Cameron on her country boys?
post-Downing Dan Neil takes
Street style on the Ford F-350
D3 D12

EATING | DRINKING | STYLE | FASHION | DESIGN | DECORATING | ADVENTURE | TRAVEL | GEAR | GADGETS
© 2017 Dow Jones & Company. All Rights Reserved. * * * * THE WALL STREET JOURNAL. Saturday/Sunday, February 18 - 19, 2017 | D1

Pedal Me to the Moon

Riding a stationary bike indoors—once a dismal pursuit—has become an out-of-this-world art form,
thanks to increasingly slick spinning classes. A skeptic shares the tale of his conversion
MATT CHASE

to Rihanna and ride and bounce around on sta- adrenaline for the soul? And how on earth were
BY JASON GAY
tionary bikes to the precipice of regurgitation. they getting away with charging $30 or more
Celebrities were early adopters, but my friends per ride?

A
CONFESSION ABOUT spinning: I
thought spinning was B.S.
Lately, this opinion made me
something of a cultural outlier, I ad-
mit. (And also a bit of a jerk.) In New
York City, where I live, and other hardscrabble
towns throughout America, spinning has become
not merely a fitness phenomenon but a bona fide
social movement, with feverish adherents and
spandexed high priests. Just as pilgrims once
flocked to Cafe Wha to be transformed by Gins-
berg or Dylan, they now pack dimly lit sweat
caves to worship their favorite instructors, listen
got sucked in, too. Many times I listened to oth-
erwise reasonable people talk moonily about spin
classes, as if they’d been abducted by aliens
wearing clickety-clacking bike shoes.
I didn’t get why spinning—a mundane staple
of gym life for decades—had suddenly become
such a hip, fashionable whoop. I loved riding
bikes outdoors, but I found the handful of spin-
ning classes I took years ago to be little more
than 45 minutes of loud group perspiration.
What was going on inside these cool new
joints? How had they transformed spinning into
such a manic marketplace? Why was it now
I knew I needed to shut up, clip in, and try it
out for myself. Which is exactly what I did. Ear-
lier this month, I survived seven different spin-
ning experiences in seven days. One (Zwift) oc-
curred in my basement, with my own road bike
attached to a Bluetooth-enabled trainer called
the Wahoo Kickr; six were at New York spinning
clubs (SoulCycle, Flywheel, Revolve, Peloton,
Swerve and IMAXShift). I spun incognito, paid
my own way, and only came close to throwing
up once.
Here’s what I learned.
Please turn to page D10

[ INSIDE ]

SCALLION SKILLS MILAN ON THE ROCKS

From mashed potatoes to pancakes, ways The city’s best bars for fans of aperitivo—
to win with green onions D7 Italy’s sip-and-snack ritual D8

LEAF ENCOUNTERS NOSTALGIA KICK

Decorating with plants hasn’t been this big Fondly recall ‘90s soccer-style?
since the ‘70s. Five verdant strategies D4 Men’s fashion does, too D2
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
D2 | Saturday/Sunday, February 18 - 19, 2017 * *** THE WALL STREET JOURNAL.

STYLE & FASHION

LOVE STORY

State of Replay
As designers join forces with soccer brands
that helped define the ‘90s, our menswear
editor relives a childhood obsession

ing on my tiptoes (the city’s cursed

BY JACOB GALLAGHER
rush-hour traffic having left me with

M
Y BRIEF SOCCER
career lasted
just five years,
from age 6 to 11.
I was bad—and
yet, I loved it. Soccer suited my
independent streak and pint-size
frame. But even then, I knew
enough to resist droning on about
my paltry stats.
Instead, I showed my soccer fa-
naticism with one beloved piece of
gear: a blue-and-white T-shirt em-
blazoned with the logo of Italian
soccer label Kappa: the silhouette
I could just make out
Kappa’s unmistakable
twosome on a model’s
sweatshirt. In an instant,
I was back in fifth grade.
of a couple seated back-to-back. If
I couldn’t play footy like Diego
Maradona, I could at least dress
like him, which I did, rather mo-
notonously, every single Friday.
The phase lasted until middle
school, when adolescence arrived
and Joey Ramone replaced Mara-
dona. With a mix of childish petu-
lance and teenage angst, I kicked
the Kappa T-shirt to the curb.
Then, this past June at Russian
designer Gosha Rubchinskiy’s spring
2017 show in Florence, all those
dreams came rushing back. Teeter-
TEAM SPIRIT // SPRING’S FASHION-AND-FOOTY COLLABORATIONS
a poor vantage point) I could just
make out Kappa’s unmistakable two-
some on a model’s sweatshirt. In an
instant, I was back in fifth grade,
crushing on Kappa.
Allie Williams, a buyer at
menswear shop End Clothing in
Newcastle, U.K., which cur-
rently stocks Mr. Rubchinskiy’s
collection, was equally smit-
ten. “As soon as Gosha did
those 1990s football collabo-
rations,” he said, “we knew
they would be a big hit.”
And a hit they most cer-
tainly have been. When Mr.
Rubchinskiy’s spring collection
began rolling into stores last
month, the Kappa collabora-
tion pieces were swiftly
snatched up—and even though
it’s only February, they’re al-
ready selling out of stores
around the world. The designer’s
sporty ’90s nostalgia exemplifies
a larger trend. Designers like Vir-
gil Abloh at Off-White and Demna
Gvasalia of Vetements also found
success with retro sport partner-
ships of their own, joining with
Umbro and Reebok, respectively. KICK BOOM Designer Gosha
So what gives? Well, for one, af- Rubchinskiy worked with soccer
ter a couple of decades, we ’80s brand Kappa on pieces like this
and ’90s babies are finding that sweatshirt, $132, Dover Street Market,
our childhood obsessions have 646-837-7750. Right: Blur’s Damon
taken up a warm, gooey place in Albarn in Kappa, 1994.
our hearts again. “When [custom-
ers] see a Fila logo, they’re back in fashion show was like seeing an
the ’90s,” said Aaron Cohen, the old friend.
co-owner of Revive, a men’s Of course, while I was bumbling
streetwear shop in Birmingham, around in suburban Maryland as
Mich. Spying a relic of my early a kid in my Kappa top, two men
style amid the flash of a European across the Atlantic were more suc-
cessfully asserting that soccer gear
could be stylish: Damon Albarn, the
former frontman of British band
Blur and Liam Gallagher, ex-front-
man of Oasis. From glossy maga-
zine shoots to the stage at Glaston-
bury, the Brit-pop stars under-
scored their shaggy-haired swagger
F. MARTIN RAMIN/THE WALL STREET JOURNAL, STYLING BY ANNE CARDENAS (SWEATER); GETTY IMAGES (ALBARN)

with Umbro jerseys and Kappa jack-

ets. (Mr. Albarn didn’t return a re-
quest for comment on the style’s
revival and Mr. Gallagher declined.)
Years later, the trend known as ath-
leisure—a much derided term—is
proving persistent, and fashion-
skewed soccer gear enjoys broader
appeal than ever.
Revive co-owner Mr. Cohen
first noticed the latest collision of
soccer and fashion a couple of
VETEMENTS years ago—around the time that
X REEBOK the sport was truly gaining
ground in America—when his
younger employees began wearing
Manchester United jerseys under-
GOSHA neath their peacoats. In 2015,
RUBCHINSKIY more people in America watched
X FILA the Women’s FIFA World Cup final
OFF-WHITE (the last major soccer final before
X UMBRO next year’s Men’s FIFA World Cup)
than the final games of the World
Series, the NBA championship or
the Stanley Cup.
“When people passionately
support soccer, that passion spills
over,” explained Helene Hope, head
of global brand operations for Um-
bro, when asked about the label’s
renaissance. “Even when men are
not watching a game or playing
[soccer], they still want to have
those influences in their wardrobe.”
And yet, you don’t have to
know Ronaldo from Ronaldinho
to wear and enjoy this new wave
of footy-meets-fashion collabora-
tions. “There’s a clubby, preppy
element to [soccer gear],”
said Mr. Cohen, which makes it
more accessible than other
more esoteric trends that a man
might encounter on a runway.
“A regular guy can get into this
stuff,” he added.
End Clothing buyer Mr. Wil-
liams agreed that you needn’t
worship soccer to warm to the
new sporty stock. “Part of the
appeal of the Gosha line and the
others is that they’re top-level,”
he said, meaning that in the
hands of a high-end designer,
these pieces are of a higher
quality, with a slimmer, more
considered silhouette than their
locker-room cousins.
As for me, after months of anx-
iously waiting for spring deliveries
to finally hit stores, I finally got
my hands on one of Mr. Rubchins-
kiy’s Kappa sweatshirts a few
weekends ago. Wearing it beneath
my trusty tweed topcoat, I felt as
self-assured as I did in elementary
school, though never more so than
when a greeter at Soho House, the
private club and hotel in down-
town New York, spotted the logo
peeking out.
“Nice Gosha,” he said. Did he
even know what Kappa was? Who
can say? But I knew, and for this
nostalgia-seeker, that was enough.

MAKE BUCKLING
UP A CINCH
The preppy D-ring belt has evolved into a more versatile,
refined find that’s not just for the weekend

BELTIN’ AIN’T EASY. When do you
need to wear a dress belt? With
buckles, how big is too big? Should
you even wear a belt at all?
But a new style—the refined D-
ring—is smoothing away some of
those stress points. If the belts pic-
tured here don’t look entirely revo-
lutionary, remind yourself that, in
menswear, minor tweaks can have a
tectonic effect. The upgraded D-ring
(or O-ring, depending on buckle
lyn-based belt and wallet maker
Maximum Henry Cohen, the stan-
dard D-ring—often printed with
tiny whales or golf clubs—becomes
an accessory that can travel beyond
the 18th hole or lunch at the club.
Great versatility gives these
dashing D-rings an advantage. They
can elevate a casual look and add a
titch of personality to something
formal or staid. “It’s interesting
without drawing too much attention
F. MARTIN RAMIN/THE WALL STREET JOURNAL

shape) is made of dressier materials to itself,” said designer Mr. Cohen.

like buttery leather or wool, instead
of the colorful webbed cotton or ny-
lon usually associated with the tra-
ditionally preppy belt. The rings
themselves have been recast—some
in warm, luxe brass like the buckle
of the RTH style here, others in del-
icate shiny silver like that of Offi-
cine Générale’s denim version. In
the hands of designers like Brook-
He also appreciates the belt’s sim-
ple construction: a strap threaded
between two metal loops. That un-
fussiness plays as well with a sport
coat at work as it does with chinos
and a polo on the weekend. Perhaps
best of all is the D-ring’s infinite ad- From top: Cowhide Belt, $200, RTH Shop, 310-289-7912; Denim Belt, $230, officinegenerale.com;
justability. Without holes, it’s a belt Leather Belt, $115, Maximum Henry, 914-224-7366; Cotton and Leather Belt, $245, Saint Laurent
that is as waistline-friendly as it by Anthony Vaccarello, 212-980-2970
gets. —Scott Christian
 For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
THE WALL STREET JOURNAL. * * * * Saturday/Sunday, February 18 - 19, 2017 | D3

STYLE & FASHION

DYLAN THOMAS FOR THE WALL STREET JOURNAL (PORTRAIT); F. MARTIN RAMIN/THE WALL STREET JOURNAL, STYLING BY ANNE CARDENAS (CLOTHING); © 2016 ARTISTS RIGHTS SOCIETY, NEW YORK/VG BILD-KUNST, BONN (PAINTING); EBET ROBERTS/GETTY IMAGES (SIOUXSIE SIOUX)
20 ODD QUESTIONS

Samantha
Cameron
The wife of former British Prime Minister David
Cameron talks about her goth past, London’s
best shopping neighborhood and her new label

I
T’S NOT UNUSUAL, especially in the social-media era, for a poli-
tician’s wife to bone up on fashion. But rarely does one launch
her own clothing line. That makes Samantha Cameron, whose
husband stepped down as Britain’s prime minister last July, some- 
thing of an outlier. But then, her rebellious streak runs deep: Cefinn Top, $215,
A baronet’s daughter, she redefined herself as a goth in her teens, im- and Skirt, $270,
mersing herself with equal passion in both painting and clubbing. net-a-porter.com
Before her husband’s election, Ms. Cameron, 45, served as creative
director of British leathergoods label Smythson. Now, seven months after
leaving Downing Street, she’s back to work, helming her own label, Cefinn
(the name merges various letters from the names of her children: Nancy,
13; Elwen, 12; Florence, 6; and Ivan, who died in 2009 at the age of 6).
Cefinn, which launched on Feb. 13 exclusively on Net-a-Porter, minis-
ters to working women who seek classic but distinctive separates. Since
returning to private life, Ms. Cameron said she’s rediscovered the impor-
tance of such boosted basics. “It’s those pieces that you can grab every
morning to get you through the day,” she said.

LADY IN RED Clockwise from top

As a teenager I was: a bit goth.
The minimal rather than romantic side
of the style—the Velvet Underground,
Siouxsie Sioux. I still have some of
that. I love a pointy brogue and black.
The last book I loved was: “Cutting
for Stone” by Abra-
ham Verghese. I’ve got
seven brothers and
sisters. I gave it to
them all for Christmas.
My closet is cur-
rently: very edited.
When we moved out
of Downing Street—
which has very large
closets and a proper
dressing room—I did
a very cathartic chuck
out. I was vicious. So my closet now
is quite small and organized. I have to
be very speedy in the morning. I can’t
spend hours trying to find things.
The women I find incredibly stylish
are: Diane Keaton and Charlotte Ram-
pling. That kind of easy, quite androg-
ynous but sexy look appeals to me.
My packing strategy is: to try not
to get too stressed. I hate it. I try
not to pack too many
shoes. I always pack
too many shoes. I do,
however, keep pre-
packed wash bags.
My daily uniform is:
tailored trousers and
trainers, with a great
blouse or knit. For the
weekend, it’s a long
skirt and boots, or a big
knit and skinny jeans.
My go-to shoes are: trainers or
heels, rather than flats. I love wearing
heels even though I’m quite tall. In
summer, I love to wear white loafers.
The one thing I wear everyday is:
actually two Smythson bags—a cross-
body clutch and a tote bag that holds
my computer. All the compartments
have very particular things that I can’t
live without. I need a bit of a traveling
office since I’m a working mom.
Dressing your age is: not necessary.
I think it depends on your personality. I
know ladies in their 70s who wear cut-
ting-edge fashion and look fantastic.
If money were no object, I’d buy:
a piece of art by German painter
Max Beckmann. I’m going to have to
come over for his exhibition at the
Met [Museum in New York].
The app I use most is: Shazam.
You can be in a shop or a restaurant
or a friend’s place and, ‘Oh, what’s
that?’ I’m always looking for new
music to listen to.
left: Samantha Cameron in her
London studio; a favorite book;
the Conran Shop; Max Beckmann
painting ‘Quappi in Grey,’ 1948;
Smythson bag. Inset: Siouxsie Sioux
My drink of choice is: tea. I can’t live
without P.G. Tips. My cocktail of the
moment is a fresh cranberry gin martini.
The last fashion piece I bought is: a
3.1 Phillip Lim dress. It’s a kind of cock-
tail dress but not full-on evening. But
you wouldn’t wear it in the day, unless
it was to something really smart.
My favorite places to shop are:
Net-a-Porter. I spend hours on it—
ask my husband. In London, the
Brompton Cross area is close to my
heart. The Conran Shop is there.
It’s great and it only gets better.
—Edited from an interview
by Nancy MacDonell

FRESH PICKS

’DO GOODERS
You needn’t be royalty—or an undiscriminating tween—to wear
something sparkly in your hair. Upgrade from drugstore barrettes
to these premium pieces from jewelry makers

From left: Lizzie

Fortunato Hair Pins,
$90 each, shopbop.com;
Ana Khouri Diamond
and Pearl Hair Pin,
$14,800, and Pearl Hair
Pin, $2,400, Dover
Street Market, 646-837-
7750; Flower Hair Pin,
$750, Bottega Veneta,
800-845-6790

THE UNIVERSE of hair ac-
cessories can be a limiting
place if you’re seeking some-
thing that falls between
a diamond tiara and dreary
drugstore clips. What you’ll
probably find are crystal-
F. MARTIN RAMIN/THE WALL STREET JOURNAL, STYLING BY ANNE CARDENAS
inset with turquoise and
mother-of-pearl stones. The
brand’s clients hankered
for more playful ways to
dress up, Lizzie said, adding,
“finding alternative ways to
amp up your outfit is a nice
cranium included. When she
launched her hair jewelry
in 2002, it quickly garnered
acclaim, though her recent
collection, available at Dover
Street Market in New York,
is the first to be available

encrusted head bands and
patterned turbans even Lady
Gaga would consider gauche.
In short: nothing a modern,
stylish woman can entrust
to subtly elevate her ’do.
Recently, however, design-
ers who make jewelry are
filling the void. For spring,
Lizzie Fortunato, who along
with her sister Kathryn,
has been turning out crafty
rings, necklaces and so on
for almost a decade, has
introduced a range of 10 hair
accessories. The standouts
are decidedly uncrafty—
sleek gold-plated bobby pins
change for evening.” Bottega
Veneta, whose jewelry
doesn’t get the attention it
deserves, started making
hair pins a season ago.
Designer Ana Khouri
pushes back against the no-
tion that jewelry is meant
to be worn on fingers, ears
and the neck except for ex-
alted occasions—or by ec-
centrics. “What drives me
crazy is that I see these
women wearing amazing
jewelry and then nothing on
the head,” she said. Trained
in sculpture, Ms. Khouri un-
derstands a woman’s curves,
outside her private atelier.
Ms. Khouri’s arachnid bar-
rette, inspired by a Louise
Bourgeois spider, contours
perfectly to your crown;
the diamond-encrusted legs
might be comfortably resting
in a web of hair. For the less
entomologically inclined, her
gold U-shaped pin topped
with a single pearl seems
to float when inserted into
a ponytail’s base. Why
should the head be off-limits
for jewelry, said Ms. Khouri.
“It doesn’t make sense if
you think about it.”
—Rebecca Malinsky
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
D4 | Saturday/Sunday, February 18 - 19, 2017 * *** THE WALL STREET JOURNAL.

DESIGN & DECORATING

A New Lease on Leaves CHOICE GREENS //
DESIGN AND
HORTICULTURAL
PROS SHARE
THEIR FAVORITES
It takes more than a green thumb to stylishly integrate plants into your home—an interior design
trend that’s literally growing apace. Here, five strategies you’ll want to cultivate

BY MICHAEL TORTORELLO

FOR MANY PEOPLE, A swooping fern does the

houseplants remain stuck
in the 1970s, when it was
entirely common to mac-
ramé a hanger for your 14th
Boston fern while listening
to Mac Davis 8-tracks and
sipping Riunite on ice.
Forty years later, design
pros are evangelizing a
more considered approach
to indoor greenery. A half-
dozen new décor books—
with titles like “Rooted in
Design,” “Urban Jungle”
and “Greenteriors”—feature
rooms that appear unmis-
takably ’17 as opposed to
’71 and provide guidance far
beyond care and feeding.
What you won’t see on
these pages is a static line
of houseplants, snoozing
on a windowsill like a tabby
house cat. The arrangement,
shape, and pattern of plants
have become integral to
a room’s design scheme.
work of a pattern on a drap-
ery. A stately palm, noted
New York designer Frank de
Biasi, can “give height and
verticality to an otherwise
low-ceilinged space.”
Tara Heibel, founder of
the Sprout Home plant
stores in Chicago and
Brooklyn, concurred that
statuesque forms catch the Wax Plant
eye of her “more fashion- Thick, almost leathery
able” clients. But she also leaves and flowers that
sells plenty of violets and remind Sprout Home’s
philodendra, which she said Tara Heibel of “upside-
serve as “comfort plants” down Barbie chandeliers”
to younger customers, who make the Hoya carnosa
associate them with, say, a top pick.
a grandparent’s house.
In the right hands,
these new plants don’t lan-
guish in foil wrapping like
a leftover from the office
birthday pool. They’re pur-
poseful parts of a room’s
décor, as seen in the interi-
ors shown here.

Chinese Money Plant

Judith Baehner, co-author
of “Wonder Plants”
(Lannoo Books) prizes
the easy cheer of the Pilea
peperomioides, with its
round leaves and ray-like
geometry.

Swap plants in for art 
Here, a mass of foliage occupies an atypical
spot behind a sofa in a room arranged by inte-
rior-styling duo Kråkvik & D’Orazio, as seen in
“Evergreen” (Gestalten). The plants accentuate
the blank, white wall, a design signature of the
Norway-based duo, who choose to forgo hung
artwork for greenery—in this case, an asym-
metrical grouping of plants—and colorful silk
carpets. “We’re really interested in objects
instead of paintings,” said Jannicke Kråkvik.
For maximum impact, they massed the kentia
palm, monstera and fern, “instead of having
plants all over in a room.”

 Shake up the shapes

In this Boise, Idaho, dining
room, featured in “Simply
Styling” (Sterling Publish-
ing), round furnishings domi-
nate: Eames-replica shell
chairs, mounted white plates,
the light fixture. When stylist
(and author) Kirsten Grove
first added a “poofier” fid-
dle-leaf fig, the result was
Pencil Cactus
The Euphorbia tirucalli’s
tubular branches remind
Link, don’t sync  Los Angeles interior
Ten years ago, when design aesthetics valued strict repetition, designer Stephan Jones of
you’d be more likely to see identical ferns in identical contain- a line drawing. He suggests
MICHAEL PAUL FROM ‘EVERGREEN,’ COPYRIGHT GESTALTEN 2016 (TOP AND BOTTOM LEFT); RAMSAY DE GIVE AND MARIA LAWSON (TOP AND BOTTOM RIGHT); PAIGE FRENCH (CENTER LEFT); ILLUSTRATIONS BY AGATA WIERZBICKA

“too matchy-matchy,” she
said. The pointy specimens
she installed instead—a
snake plant and an Aloe
vera—pleasingly contrasted
with the curved forms, like
a sword in a stone.
ers. Quiet eclecticism informs today’s spin on that look, as a container of repurposed
illustrated in Tara Heibel’s “Rooted in Design” (Ten Speed steel or rustic carved stone.
Press). Similar pot styles provide coherence, “so we can vary
the plant material,” explained Ms. Heibel. What subtly unifies
the scheme is the “dark and sexy” palette—purplish black
in the Alocasia ’Polly’ (the biggest pot); dark lavender in the
lady’s-slipper orchid; deep green of the Saxifraga.

Keep it down in front 

Interior designer Sera Hersham-Loftus organized the plants in her London
office like the kids in a school photo: short in front (rosemary, lavender,
daisy); tall in back (magnolia, kentia palm). “There isn’t one plant overshad-
owing another. It’s as simple as that,” she said of the jungle-like design
scheme, featured in “Evergreen.” In addition, she arranged the foliage to
allow a peekaboo view of a painting. Beyond that, serendipity is the plan, as
vegetation rotates in from the balcony: When the magnolia droops for want Prickly Pear Cactus
of sunlight, Ms. Hersham-Loftus sends it outside and hauls in a new garden. Sculptural as a mini
Henry Moore, the opuntia
survives freezing weather,
and its shallow roots don’t
require a deep planter,
said Andrew Erdle, of New
York’s Sill Shop.

Lady’s Slipper Orchid

Use a stand to deliver 
The arcing fronds of an elegant sago
palm and a rounded white pot soften the
chair’s rigid geometry without complicat-
ing matters. “If it was smaller, it would
add to the chaos of the assemblage be-
hind it,” said Ms. Heibel, analyzing this liv-
”I use orchids in the
entry or as a centerpiece,”
said Laura Dowling, author
ing room, included in “Rooted in Design.” of “Floral Diplomacy at
The stand lends stature, giving the palm the White House”
the same priority as any piece of the (Stichting Kunstboek)
homeowner’s art collection, Ms. Heibel and floral designer of the
added. A plant stand or tall tom pot jacks Obama residence. Her
up a smaller specimen for the same im- favorite: Paphiopedilums.
pact as a mature (and costly) showpiece.
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
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THE WALL STREET JOURNAL. * * * * Saturday/Sunday, February 18 - 19, 2017 | D5

PHOTOGRAPHED BY
BRUCE WEBER

866 .VUITTON louisvuitton.com

For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
D6 | Saturday/Sunday, February 18 - 19, 2017 * *** THE WALL STREET JOURNAL.

EATING & DRINKING

ON WINE LETTIE TEAGUE

Grape Debate: Single-Vineyard vs. Blends

WINE LOVERS ARE rarely without
topics to debate. Two particular
favorites are the superiority of
red wine over white (red always
triumphs) and whether a wine
with some age is better than one
that is young (this invariably
ends in a draw). Lately, a third
subject has been cropping up in
my conversations with friends:
Single-vineyard wines vs. blends.
Is it true that a wine from a
specific place is inherently supe-
rior to a wine made from grapes
grown in multiple locations?
That’s a question I’m asked over
and over again.
A single-vineyard wine suppos-
edly showcases a truly singular
site capable of producing a distinc-
tive wine. New Zealand winery
Insight even announces this sup-
position on its website: “ ‘Single
vineyard’ is effectively a quality
mark.” The vineyard might have
an official classification that
clearly denotes its status, as in
Burgundy, where the worth of a
wine is directly related to its vine-
yard’s ranking (the best are rated
grand or premier cru). Or it might
have no ranking at all, just a his-
tory of producing notable wines
or a particularly visionary owner
that set the plot apart.
And yet one could argue that
a wine made from the product
of multiple vineyards may be an
even more ambitious endeavor,
requiring a winemaker to put to-
gether very different pieces of

a vinous puzzle into a cohesive
yet complex whole.
You can find compelling exam-
ples—including some of the world’s
most-revered and sought-after
wines—on both sides of the debate.
Champagne is a particularly fa-
mous specimen of the art of the
multivineyard, and often multi-
grape, blend. Although there are
some notable single-vineyard spar-
kling wines, such as the legendary
Krug Clos du Mesnil, blends are
much more common, especially
at large Champagne houses (the
so-called grand marques), which
make wines from their own (es-
tate) and purchased fruit.
One of the most celebrated
prestige cuvée Champagnes, Louis
Roederer Cristal, is produced with
grapes from 45 vineyard parcels
from all over Champagne, said
Roederer director of winemaking
Jean-Baptiste Lecaillon. While
he advocates both single-vineyard
and blended wines, Mr. Lecaillon
noted that a multivineyard wine
“allows a stronger interpretation
by the winemaker,” who he said
“can achieve a more consistent
style in the long term…and create
an extra complexity.”
This is also true of Penfolds
Grange, a wine many regard as
Australia’s greatest. The Shiraz-
dominant blend, produced from
multiple vineyards across multiple
regions, including the Barossa
Valley, Clare Valley and McLaren
Vale, is not only one of the most
A single-vineyard wine
supposedly showcases
a truly singular site
capable of producing
a distinctive wine.
acclaimed wines in Australia but
one of the most expensive, with
a current price of $850.
Does that mean Penfolds chief
winemaker, Peter Gago, believes
in the superiority of the blend? Yes
and no, Mr. Gago wrote in an email,
as he posed a question of his own:
Were violinists or pianists supe-
rior? “It depends on what the ‘cog-
noscenti’ wants to hear!” he said.
Napa Valley-based consulting
winemaker Aaron Pott also hedged
his bets, saying he didn’t think one
type of wine was necessarily bet-
ter. However, as a winemaker he
finds single-vineyard wines “much
more intellectually interesting”
and likes charting the changes
from one year to the next.
Chris Camarda, the famously
opinionated proprietor of Andrew
Will Winery and one of the most
respected winemakers in Washing-
ton state, came down strongly on
the side of single-vineyard wines.
In fact, he posited that “discretely
outlined vineyards are the soul
of winemaking,” referring to vine-
yards that yield remarkable wines.
All of Mr. Camarda’s top wines are
single-vineyard selections; even his
flagship Sorella, which started as
a blend, is now sourced from one
vineyard—although it is still made
from a blend of grape varieties.
Ed Sbragia made both single-
and multivineyard wines as head
winemaker at Beringer Vineyards
in Napa. The winery’s flagship
blend, Beringer Private Reserve
Cabernet, made from vineyards
all over Napa, debuted on his
watch in 1977 and is arguably still
Beringer’s most famous wine. Mr.
Sbragia, who now makes single-
vineyard Cabernet under his own
name in Sonoma, said a single-
vineyard wine is more difficult to
get right but a blend requires
more “input from the winemaker.”
Vintners need to know exactly
which fruit from which vineyard
or vineyard parcel to add to the
blend—something winemakers
with only one vineyard might not
know how to do, leaving them at
a disadvantage when their plots
are blighted by bad weather. As
Mr. Sbragia noted, “There is no
room for error” with a single-
vineyard wine.
Perhaps that’s why noted Napa
grower Andy Beckstoffer will only
sell his fruit to winemakers he
knows or knows by reputation.
Their wines need to burnish, not
GREG BETZA
tarnish, his vineyards’ reputation,
particularly To Kalon, one of the
country’s most renowned Caber-
net Sauvignon sites. And wine-
makers are willing to pay a lot
of money for the privilege: up
to almost $60,000 a ton in some
cases—an exponentially greater
sum than any other Napa Caber-
net fruit fetches.
With talented winemakers and
well-known wines on both sides of
the debate, perhaps it isn’t a matter
of which type of wine is better but
of reframing the question. What
do you want from a wine? To adapt
Mr. Gago’s musical analogy, do you
want a soloist or a symphony?
Certain winemakers are so
talented that I would almost
always try their single-vineyard
selections, even if the vineyard
wasn’t one I knew. But if the wine-
maker or winery is unfamiliar, or
if it’s the work of grand marque
Champagne house, I’d probably
opt for the blend.
 Email Lettie at wine@wsj.com

SLOW FOOD FAST SATISFYING AND SEASONAL FOOD IN ABOUT 30 MINUTES

Chicken, Leeks and Carrots With Sauce Ravigote

THIS SIMPLE DISH has a lot to say. It was leeks and carrots in a concentrated broth.
RYAN LIEBE FOR THE WALL STREET JOURNAL, FOOD STYLING BY JAMIE KIMM, PROP STYLING BY NIDIA CUEVA; ILLUSTRATION BY MICHAEL HOEWELER

on the menu when British chefs Clare de A luscious, egg-enriched iteration of

Boer and Jess Shadbolt opened their res- the classic French sauce ravigote delivers
taurant, King, a few months ago with gen- a one-two punch of herbs and capers.
eral manager Annie Shi, in an airy corner Gratifying and unfussy, this is the kind
space in lower Manhattan. “We wanted to of food you come back to again and again.
present our thesis, that we cook with sim- “We want people to linger over platters of
plicity, elegance, great ingredients and a whole fish, or beans with gobs of olive oil,
focus on clear flavor,” said Ms. de Boer. and lots of good wine,” said Ms. Shadbolt.
The recipe combines poached chicken, “It’s about generosity.” —Kitty Greenwald
The Chefs
Clare de Boer and TOTAL TIME: 35 minutes SERVES: 4
Jess Shadbolt
Sea salt 1 stalk celery 4 oil-packed anchovy fillets
Their Restaurant 1/
2 tablespoon whole black 1 red onion, halved 10 capers, rinsed
King, in Manhattan peppercorns 8 medium carrots, peeled 1 teaspoon Dijon mustard
2 fresh bay leaves 4 large leeks, halved Leaves from 1 bunch tarra-
What They Are 12 thyme sprigs lengthwise gon, finely chopped
Known For 10 parsley sprigs, plus 4 bone-in, skin-on chicken ½ teaspoon red wine
Bringing their 1/
4 cup finely chopped legs, seasoned with salt vinegar
subtle, deceptively parsley leaves 5 eggs ½ cup olive oil
simple style of
continental cooking 1. Fill a pot with 8 cups water and set over high 3. Meanwhile, make sauce: Set a medium pot
and warm hospital- heat. Add a large pinch of salt, peppercorns, filled with water over high heat. Once water
ity to New York, bay leaves, thyme, parsley sprigs, celery, onions, boils, add eggs and cook, uncovered, over me-
by way of London carrots and leeks. Once water boils, add chicken dium-high heat until yolks are just set and deep
and reduce heat to medium-high. Add extra yellow at centers, 7 minutes. Immediately trans-
water, if needed, so ingredients are submerged. fer eggs to a bowl of ice water. Finely chop an-
2. Poach chicken and vegetables at a steady chovy fillets with capers to form a paste, trans-
simmer until leeks are tender, 15 minutes. As fer to a bowl and stir in mustard and vinegar.
broth continues to simmer, transfer leeks to a 4. Peel eggs and separate yolks from whites.
bowl. Once carrots are just tender, 5 minutes Use a fork to smash yolks into anchovy mix-
more, transfer to bowl with leeks. Once chicken ture until well combined. Finely chop whites
is just cooked through, 10 minutes more, trans- and add to sauce. Whisk in herbs and olive oil.
fer to bowl with vegetables. Simmer broth 5. Remove skin from chicken legs and discard.
to concentrate flavor, 5 minutes more. Strain Distribute legs, carrots and leeks among 4 shal-
broth, discarding solids. Return broth to pot low bowls and ladle broth over top. Season to OH BOIL This ravigote gets body and richness from hard-boiled eggs. Cook
and simmer over low heat until ready to serve. taste with salt. Garnish with spoonfuls of sauce. them just until fudgy at the center and mix the yolks thoroughly into the sauce.
 For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
THE WALL STREET JOURNAL. * * * * Saturday/Sunday, February 18 - 19, 2017 | D7

EATING & DRINKING

Champ (Scallion Mashed Potatoes)

Scallion and These traditional Irish mashed potatoes, threaded through with plenty of scallions, are meant to be
served with a lake of butter on top. Leftovers make a delicious topping for shepherd’s pie.
TOTAL TIME: 40 minutes SERVES: 6

On and On
For sale in every supermarket, simpatico
with any style of cooking, the game green
onion delivers the gusto all winter long

When I have the time and

BY KATE WINSLOW
inclination, I make scallion
pancakes—those flaky, chewy

H
ERE IN THE
Northeast, the
air is shoul-
der-hunchingly
cold, the
streets streaked with salt and
sand, the palette all muds and
drabs. We’re braising our
days away, Instagramming
our avocado toasts as cheer-
fully as we can, but clearly,
it’s time for action.
Enter the scallion,
winter’s welcome pop of
green. On most every
trip to the grocery
store, I grab a bunch,
discs of fried deliciousness.
With plenty of parsley, mint,
lemon juice and some cracked
bulgur, scallion taboulleh is
within reach. Whizzed up in
the depths of February, a scal-
lion-powered green gazpacho
is a tonic to combat the cold.
Make it again come summer,
when the peppers and cucum-
bers are hanging heavy on the
vine, to help beat the heat.
That’s the beauty of scal-
lions—they fit in seamlessly
with so many dishes,
from Chinese dump-
lings to a carne asada

GUY AMBROSINO (DISHES); F. MARTIN RAMIN/THE WALL STREET JOURNAL (SCALLIONS)

whether or not I have
a recipe in mind.
Also known as green
onions and, more rarely,
Welsh onions, scallions are
the most common fresh on-
ion we have. You won’t find
this easy-to-love allium in the
bins with the storage onions,
but over in the ever-misted
coolers, tucked between
the herbs, the celery and
the carrots—the wall of flavor,
as I like to think of it. The scal-
lion’s entire length, from
straight white bulb to hollow
green leaves, is ready to be put
to delicious use.
Raw, scallions have a whis-
per-shout of that allium bite,
but their flavor becomes a bit
keener after a quick minute in
a hot pan. Like any onions,
they can serve as the flavor
They can add a
grace note, a verdant
scatter of freshness.
foundation for a dish. For in-
taco.
The first recipe I
learned to make as a kid
was the Weaver Family
Olive Dip, which always
accompanied pre-dinner
drinks at my grand-
mother’s house: 1. Chop up
a jar of pimiento-stuffed
olives. 2. Mince a bunch
of scallions. 3. Mash the
two into a block of cream
cheese along with a good
slug of brine from the olive
jar. 4. Serve the dip with Tris-
cuits, icy gin and tonics, and
maybe a hand of Canasta.
Nowadays, if last-minute
guests are at the door, I’ll stir
a bunch of chopped scallions
and plenty of black pepper
into a cupful of Greek yogurt
and serve with chips.
It works because scallions
and dairy go hand in hand.
Try steeping scallions in hot
milk and then folding the con-
coction, along with plenty of
good salted butter, into
steamed potatoes to create
the Irish dish known as
champ, aka the mashed pota-
toes of your dreams.
By the time you run out of
3 pounds Yukon Gold Kosher salt finely chopped
potatoes, peeled 11/2 cups whole milk 6 tablespoons salted
and quartered 2 bunches scallions, butter, preferably Irish
1. Put potatoes in a heavy pot filled Turn off heat under saucepan and add most smooth. Cut 4 tablespoons but-
with cold water and season liberally scallions to milk. ter into potatoes, pour in milk and
with salt. Bring to a boil over high 3. Drain potatoes well, then return scallions, and season with 1 teaspoon
heat then reduce heat to medium and them to pot and place over low heat. salt. Continue to mash until potatoes
simmer, uncovered, until potatoes are Warm potatoes for a couple of min- are smooth. Transfer to a warmed
soft, about 20 minutes. utes, occasionally shaking pot. (This serving bowl, make a wide depression
2. While potatoes cook, heat milk in a will help dry out the potatoes, making in the center and nestle remaining 2
small saucepan over moderately high a fluffier mash.) Using a potato tablespoons butter into hollow. Serve
heat until it just comes to a simmer. masher or fork, mash potatoes until al- immediately.
Green Gazpacho With Fried Almonds
This jade-green gazpacho is healthy, beautiful, surprising
and satisfying. You can garnish it with a swirl of plain yogurt,
but you’ll love the added crunch that comes from the fried nuts.
TOTAL TIME: 25 minutes SERVES: 4
4 scallions, coarsely 1/
2 to 1 jalapeño, chopped
1/
2 cup cilantro
chopped 1 clove garlic, chopped 4 tablespoons olive oil
1 green bell pepper, 1 cup water 2 tablespoons Sherry
coarsely chopped 3/
4 teaspoon ground vinegar
1 medium cucumber, cumin 1/
3 cup whole raw

stance, with ginger and garlic,
scallions make up the triumvi-
rate that gives a lift to any
stir-fry. But they can also add
a grace note, a verdant scatter
of freshness. It’s embarrassing
to admit how many evenings
find me at my local takeout
spot, picking up quarts of
wonton soup for my family.
Once home, I top steaming
bowls with copious chopped
scallion greens and a big
squirt of Sriracha and call it
good. And it is.
ideas for what to do with scal-
lions, the slush will have given
way to crocuses, and we’ll be
dreaming of what to make
with those first spears of as-
paragus and English peas…
fresh pasta, perhaps, tossed
with lemon zest, hazelnuts
and—what else? Scallions.
Ms. Winslow is the co-au-
thor, with Guy Ambrosino, of
“Onions Etcetera: The Essen-
tial Allium Cookbook” (Bur-
gess Lea Press, Feb. 14).
peeled, seeded and Kosher salt
coarsely chopped 3 cups spinach leaves
1. Combine scallions, bell pepper, cu-
cumber, jalapeño, garlic, water, ½ tea-
spoon cumin and ½ teaspoon salt in a
blender. Pulse until almost smooth.
2. Add spinach, cilantro, 2 table-
spoons olive oil and vinegar. Blend un-
til mixture is very smooth, adding a
drop or two of water if necessary to
thin the soup. Taste and adjust sea-
sonings. Refrigerate until very cold.
3. Heat remaining 2 tablespoons olive
oil in a small skillet over moderate
almonds, coarsely
chopped
heat. Add almonds and remaining ¼
teaspoon cumin and fry, stirring fre-
quently, until almonds are golden
brown and nutty-smelling, 3-5 min-
utes. Using a slotted spoon, transfer
nuts to a paper towel–lined plate to
cool. Season with salt.
4. Serve gazpacho garnished with
some fried almonds.
 Find a recipe for scallion sesame
pancakes at wsj.com/food

BITS & BITES NEWS YOU CAN EAT

THE TOOLS
A Charmed Knife
While most top-of-the-line

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you can toss this low-main-
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THE CONDIMENT
Jam Session
THE SWEET Hudson Valley, N.Y., architect Alan Gray Neumann has devoted
himself to preservation in more ways than one. The self-pro-
Smart Cookies fessed “obsessive nut” has long pursued the ideal formula for
Chocolate-chip devotees tend to be stubbornly set in their ways, de- jarring the pure sunshine of Seville oranges, now in peak sea-
F. MARTIN RAMIN/THE WALL STREET JOURNAL

manding one of two types of cookie—thin and brittle, or dense and son. He tested and tweaked for over a decade before settling
cakey. A radical proposal: Why not enjoy the best of both in one on a sophisticated marmalade laced
baked good? Dotted with semisweet Guittard chocolate and plenty of with Scotch whisky to “mediate be-
nuts—macadamias, almonds and walnuts—the chocolate-chip cookie tween the bitterness of the citrus
from Maman cafe in New York (and locations abroad) does nothing in and the sweetness of the sugar,”
half-measures yet satisfies both cookie-loving camps, with crisp, said Mr. Neumann. His spread
browned edges that yield to a gooey, just-baked center. And for the makes an occasion of morning
month of February, Maman has introduced another category-defying toast, and positively sings when
treat: a white-chocolate-chip cookie amped up with tart dried cherries paired with a rich, creamy cheese.
This is not a warehouse sale. All products are made to order.
and cranberries. Find both in the limited-edition Love Box, available $13 for 9 ounces, talbottandard-
until Feb. 28. $45 for one dozen cookies, mamannyc.com ing.com —Kelly Michèle Guerotto
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
D8 | Saturday/Sunday, February 18 - 19, 2017 * *** THE WALL STREET JOURNAL.

ADVENTURE & TRAVEL

STEFANO TRIPODI FOR THE WALL STREET JOURNAL

IN SEARCH OF  THE SUAVE APERITIVO You’ll pay for the privilege of drinking here. The
Il Bar

Milan’s
Places like this posh hangout, located in the
even-more-posh Bulgari Hotel Milano, give
Milan its reputation as Italy’s sleekest, most
fashionable city. The hotel, a joint venture be-
tween the luxury-goods brand and the Ritz-
signature cocktail, the Bulgari, costs a whopping
$23. This refreshing affair in the aperitivo tradi-
tion combines Aperol (Campari’s lighter sibling),
gin and fresh orange juice, among other ingredi-
ents. But you’ll consider it a bargain when you
factor in the treats that accompany it—a two-

Happiest Hours
Carlton hotel group, is an island of civility,
tucked away on a side street not far from Te-
atro alla Scala, Milan’s storied opera house.
Glass walls that overlook a spacious garden
afford the bar area of Il Bar, which also has a
dining room, a contemporary feel. In pleasant
weather, the patio itself, almost like the lair of
Evening cocktails in Italy’s financial capital are more main event a modern monarch, is the place to be. (And if
the weather turns chilly, the wait staff will
than prelude. Here, four bars whose aperitivi yield big returns rush to provide you a blanket.)
tiered mini feast of small plates with selections
that change regularly. On my visit, the offerings
included a dish of quality mozzarella, some sea-
food skewers (I especially loved the marinated oc-
topus) and an array of fried vegetables (crisped to
perfection, as the Italians are wont to do). The
crowd—well-heeled locals mingling with interna-
tional business travelers—makes for entertaining
people-watching between bites. Via Privata Fratelli
Gabba 7b, bulgarihotels.com

 THE CRAFTY APERITIVO

BY CHARLES PASSY
Rita & Cocktails

A
If Bar Basso (below) represents Milan’s cocktail past, Rita
H, THE WORLD’S great drinking cities: New & Cocktails, which opened in 2002, exemplifies its trendy
York with its trendsetting craft cocktail bars, present. This perennially buzzy nightspot, located in the bo-
Dublin with its welcoming neighborhood pubs, hemian neighborhood surrounding the Naviglio Grande ca-
Munich with its vast beer halls. nal, places a big emphasis on craft-cocktail wizardry: Think
But Milan? The northern Italian city, known drinks with multiple ingredients and with descriptions that
as the country’s financial and fashion hub, may not be as come off more like bursts of eye-rolling poetry (“Only for
globally celebrated for its cocktail culture, though the Mila- those who are not afraid of memories,” reads one—and,
nese know better. Here style and socializing are so impor- yes, the bar prints a version of the menu in English).
tant to everyday life, it’s only natural that drinking would be The room itself, with its light wood floors and panel-
artfully considered and play a significant role. Specifically, it ing, looks a little like a sauna with booze-lined shelves.
plays a role starting at around 6 p.m., when Italians—not Try to secure a table (or a spot at the bar), and make a
just in Milan, but throughout the country—break for what’s point of ordering one of the Campari-based drinks since
called aperitivo. that’s where Rita really shines. Consider, for instance, the
More than simply the Italian equivalent of an aperitif, a Giulietta ($9), combining Campari with Dom Benedictine
pre-dinner drink, the aperitivo combines alcohol—often a liqueur, limes and a syrup made from a dark-brown
cocktail built around a bittersweet, appetite-whetting Italian- sugar, among other ingredients. Beyond such signatures,
made spirit like Campari—with a light bite or two, typically the menu can veer in odd directions, offering drinks
offered by the bar as a free extra. Milan often takes the rit- made with everything from carrot juice to a cardamom
ual to extravagant heights. Its bars concoct their cocktails tincture. The cocktails’ names distinguish themselves too:
with decided ambition, playing with ingredients and presen- Take the Henry Fonda ($9, London dry gin and St. Ger-
tation. Just as important: Some of the more famed or popu- main liqueur) or the Saffron Bastard ($9, vodka and saf-
lar bars dramatically up the food component, laying out ex- fron syrup).
tensive buffets or serving a bountiful platter of snacks to Rita also excels in the food department. An assortment
every guest. Certain bars even roll out a late-night aperitivo of complimentary goodies accompanies every drink order:
with a selection of desserts. Eager to learn just how varied Mine included beef tartare with oversize capers, a mini
the age-old custom is in Italy’s most modern city, I combed pizza, green olives and an overflowing portion of crudités.
the streets on a recent visit for the best in aperitivo, finding Like a good many Milan bars, Rita also has a small dining
four spots that stood out—bar none. menu. Via Angelo Fumagalli 1, facebook.com/RitaCocktails

 THE ARTY APERITIVO
Bar Luce
Located within the Prada Foundation’s
contemporary art space in an industrial
neighborhood, Bar Luce looks a little
like an art installation itself—an odd
mashup of an old-fashioned Italian cof-
fee shop with the twee, offbeat sensi-
bility of the American film director Wes
Anderson. Mr. Anderson doesn’t own
the joint, but he did design it, imbuing
it with a 1950s aesthetic. That trans-
lates into a vivid-pastel color scheme
and Formica countertops and a couple
of pinball machines (themed around
some of the director’s movies). The
aperitivo here is more of an all-day af-
fair, meaning you don’t have to wait un-
til the evening to have a drink and
snack. The relatively short cocktail list
includes long-forgotten American favor-
ites like a Harvey Wallbanger alongside
a selection of Italian-style “spritz” cock-
tails (which get their bubbles from soda
water or sparkling wine). Other drinks
adhere to the modern mixology trend:
Try the Zazou with absinthe, Cognac
and a rhubarb liqueur ($10).
The free aperitivo culinary accompa-
niments add a note of generosity: Few
bars will set a bowl of macadamia nuts
before you (and that’s not to mention
other savory offerings, including fat
green olives and Marcona almonds).
You needn’t pay admission to the Foun-
dation’s art museum to enter the bar,
but wandering around the sizable space,
designed by Rem Koolhaas’s OMA ar-
chitecture firm and host to a rotating
selection of arresting exhibits, is a fine
way to build up an appetite for an aper-
itivo. Largo Isarco 2, fondazione-  THE CLASSIC APERITIVO spumante, or sparkling, wine for the
prada.org/barluce-en/?lang=en Bar Basso gin. The whole thing came about as a
A bright neon sign beckons pass- bartender’s error—indeed, sbagliato
ersby into Bar Basso, in the quiet, translates as “mistaken”—but one
student-oriented Città Studi neigh- that inadvertently gave the Negroni a
borhood. Inside, the establishment, sweet, bubbly lilt.
which first opened in 1947, still has If Negronis, traditional or “mis-
the inviting feel of an old-school taken,” are not your thing, explore the
gentlemen’s club, where bartend- rest of the voluminous drink menu
ers, in white shirts and ties, reign for other tasty options such as the
over a chandelier-topped bar. Ev- Fragolino ($10), a strawberry-based
erything here has seemingly been cocktail. As for food, this aperitivo
in place for decades. will disappoint those looking to stuff
The cocktails exude a vintage themselves silly—expect the basic
quality, too—lots of old-fashioned Italian drink accompaniments of po-
favorites, including the Negroni tato chips, olives, some crostini-type
Sbagliato ($10), the signature Ital- offerings. Still, by virtue of its yester-
ian sip the bar introduced to the year appeal and continued emphasis
world in the early ‘70s. This varia- on making cocktails with care, Bar
tion on the classic Negroni cocktail Basso deserves a place on anyone’s
(equal parts Campari, gin and aperitivo itinerary. Via Plinio 39, bar-
sweet vermouth) substitutes a basso.com
 For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
THE WALL STREET JOURNAL.
Adventurous women have long been winging it in Kenya. Following their lead, a first-time visitor
BY ALEXA BRAZILIAN
B
EFORE I finally
made it to Kenya,
I had traveled
there in my
imagination. For
years I’ve read book after
book on the salacious exploits
of the so-called Happy Valley
set, a group of hard-partying
British and European aristo-
crats who settled in the Wan-
johi Valley, on the slopes of
the Abedare mountains, 80
miles north of Nairobi. In the
clique’s prime during the
1920s and ’30s, their scandals
and spouse-swapping ways
were so well-reported by the
English press that the joke
“Are you married, or do you
live in Kenya?” circulated
widely in London.
My literary journey began,
predictably, with Karen von
Blixen’s 1937 memoir, “Out
of Africa,” published under
the pen name Isak Dinesen.
The Danish Baroness wrote
of her love for Kenya and of
the great white hunter, De-
nys Finch Hatton, played by
Robert Redford in the book’s
film adaptation. Then came
“West with the Night,” the
memoir of Baroness von
Blixen’s friend, Beryl Mark-
ham, the blonde-haired
beauty, horsewoman and avi-
atrix who, in 1936, completed
the first female solo flight
across the Atlantic from east
to west, a month shy of her
34th birthday. Next, I tore
through “The Bolter,” Fran-
ces Osborne’s juicy biogra-
phy of her great- grand-
mother Idina Sackville, who
was married and divorced
five times (hence her nick-
name). She lived in a ranch
called “Clouds” in the Aberd-
ares, where she hosted leg-
endary weekend parties (of-
ten in the nude).
Colonial Kenya most cer-
tainly had an ugly underbelly
(infidelity being the least of
it), which ended when the
country gained independence
in 1963. What kept me read-
ing the stories of British East
Africa were the adventurous
women who lived in that
time. They shared a certain
fearlessness, a disregard for
the rules of society and a pas-
sion for exploration of the
great wide-open.
Perhaps it was the ghosts
of Happy Valley’s wild women
that inspired me to take a
half-day helicopter tour of
one of the country’s most re-
mote and rugged areas on my
first trip to Kenya. Suguta
Valley lies near the bottom of
Kenya’s piece of the Great Rift
Valley, an intercontinental
trench that runs from Jordan
to Mozambique. Inhabited
only by the hardiest tribes in
the country, it goes by nick-
names like “the cradle of
mankind” “world’s end” and
THE LOWDOWN // TAKING A HELI-SAFARI IN KENYA
JASON LEE
* * * *
A High-Flying Safari
takes her own joy ride, a heli-tour of the country’s secluded north
the “valley of death.”
One of the few outfits of-
fering access to the Suguta
Valley is Ol Malo, a small
ranch and game reserve about
150 miles north of Wanjohi
Valley. Owned by Colin and
Rocky Francombe, third gen-
eration–Kenyans, Ol Malo sits
on 5,000 acres of the remote
Laikipia plateau. The north-
ernmost ranch in Laikipia, it
acts as the gateway to
Kenya’s Northern Frontier
District. The flight is part of
Ol Malo’s new “Nomad” mo-
bile-safari program, designed
to send guests out on off-the-
beaten-path adventures.
These tailor-made trips can
include everything from heli-
copter-driven sundowners
atop a jagged rock to three-
day camel and horse safaris.
The Laikipia region re-
ceives about 86,000 visitors a
year, far less than the Masai
I ran barefoot from
the chopper across
the hot caviar-colored
sand and into the
warm alkaline waters.
Mara National Reserve to the
south, which gets around
290,000. Composed of
ranches, wilderness preserves
and the lands of the local
Samburu tribe, the region is
home to the second largest–
density of wildlife in Kenya
after the Masai Mara, includ-
ing half of the black rhinos
and the second largest popu-
lation of elephants, whose an-
cient migration route runs
through Ol Malo’s backyard.
The Francombes them-
selves and their son Andrew
and his wife, Chyulu, host
the 10-room ranch, a bit of
old-fashioned charm that’s
rare in the modern world of
glamping and mega-lodges. A
series of thatched-roof struc-
tures that blend into the
landscape comprise the prop-
erty. Colin is a great conver-
sationalist, regaling guests
over fireside cocktails with
Staying There Ol Malo Lodge,
in Laikipia, Kenya, is a one-hour
charter flight from Nairobi. Its 10
rooms, all built with local materi-
als, have an enchanted-forest
feeling. Service is impeccable but
invisible, the food simple and
seasonal. The “Nomad” helicop-
ter safaris run about $1,000 an
hour; the trip to Suguta Valley
takes five to six hours (Room
rates from $795 a night per per-
son, olmalo.com).
Saturday/Sunday, February 18 - 19, 2017 | D9
ADVENTURE & TRAVEL
PAOLO PARAZZI (HELICOPTER); GETTY IMAGES (QUEEN ELIZABETH), FLAMINGOS)
tales of the Happy Valley UP FOR AIR Clockwise from
crew, who belonged to the top: The helicopter used for
same generation as his par- Ol Malo’s ’Nomad’ mobile
ents. His father was a Wing safaris; Queen Elizabeth in
Commander for the Royal Air Kenya in 1952; a flock of
Force and later a pilot along flamingos flying over Lake
with Ms. Markham for Wil- Logipi.
son Airways, Kenya’s first
commercial airline. In 1952 swim and I ran barefoot from lake’s notoriously large popu- ton’s Gipsy Moth. “When you
he became the first pilot to the chopper across the hot lation of crocodiles but of a have flown over the Rift val-
fly an English Queen, when caviar-colored sand and into passage in “Out of Africa,” ley…you have traveled far and
the 25-year-old Princess Eliz- the warm alkaline waters. I when Ms. von Blixen wrote of have been to the lands on the
abeth visited Kenya. On that floated, thinking not of the a joy ride in Mr. Finch Hat- other side of the moon.”
trip, her father, King George
VI, died, she assumed the
throne and Colin’s father was
Escape
enlisted to fly her from Nai- Flamenco Beach, Culebra
robi to Entebbe so she could
return to England. Colin re-
called his father circling THE
above the family yard in his
plane that day, dropping his
sock containing a message
IN
that he’d be late for supper.
I kept this fine family leg-
acy of aviation in mind as I
nervously jumped aboard a
helicopter at sunrise, bound
for the Suguta Valley, with
READY TO GET AWAY
Andrew as my pilot. The from the winter?
chilly Laikipia air blew
through the doorless chopper
as we sailed over the red
earth and green umbrella-
IT’S AS EASY AS 1, 2, 3!
shaped acacia trees headed
north. The Suguta Valley re-
vealed itself far, far below. I
thought of how Kenya’s early
1 NO PASSPORT REQUIRED FOR U.S. CITIZENS
aviators must have felt seeing
Africa by air for the first time
2 Over 400 WEEKLY FLIGHTS from U.S. cities
in the Gipsy Moth biplanes.
“We began at the first hour of
the morning…when you could
3 Choose BEACHES, RAINFOREST, NIGHTLIFE and everything else you can experience
see your breath and smell
traces of the night,” wrote
Ms. Markham in “West with
the Night” of her first flying
lesson. Thanks to the com-
pactness of the chopper and
Andrew’s deep knowledge of
the territory, we were able to
land just about anywhere—
and did. Few Westerners, An-
drew speculated, have ever
set foot in some of these
places before. Toro Verde Nature Adventure Park, Orocovis
We ate a made-ahead
breakfast of peaches, muesli
and cream in jam jars under
a rust-red archway sur-
rounded by colorful moun-
tains. We flew low, following
the palm-tree dotted Suguta
river, racing alongside Nile
crocodiles and galloping
kudu. Just like that, the wa-
ter and palms were replaced
by a desert of sand dunes.
We plopped the helicopter
Flamenco Beach, Culebra
down on a ridge just wide
SAVE UP 60 TO %*
enough for our landing skids,
hopped out and tumbled
across the sand, filming slow-
mo videos on our iPhones.
Next, like a mirage, came
Lake Logipi—halfsalt marsh,
VISIT ESCAPETHECOLDinPUERTORICO.COM
half pools of water turned FOR MORE INFORMATION 1.800.866.7827
pink by thousands of flamin-
gos. Beyond a range of jet-
black volcanic rock came the
ancient Lake Turkana, its wa-
*Offer subject to availability and may change without notice. Additional benefits may vary by hotel.
ter a brilliant mint-jelly hue. Booking Dates: December 1, 2016 to March 19, 2017. Travel Dates: December 1, 2016 to April 2, 2017
We landed for an impromptu
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
D10 | Saturday/Sunday, February 18 - 19, 2017 * *** THE WALL STREET JOURNAL.

GEAR & GADGETS

WE ARE HERE TO PUMP YOU UP!

Continued from page D1
SPINNING IS FANCY NOW.
Remember the olden days,
when spin classes meant rid-
ing rusted-out broomsticks
and mopping up your own
sweat? Those days are over,
pal. Today’s spin rooms re-
semble sceney nightclubs.
The bikes (usually standard
stationary bikes, with a knob
to adjust resistance) are typ-
ically arranged amphithe-
atre-style, surrounding the
instructor.
The best bike, by far, was at
Peloton—not surprising, since
their main business is selling
bikes for home use (you may
have seen the Peloton TV ads
with the handsome couple
who look like they race each
other to the mailbox for the
Design Within Reach catalog).
Most of the NYC spin class-
rooms, including Peloton’s,
were packed like subway cars,
but one of them, IMAXShift,
was a cavernous spinning me-
gapolis where I rode in front
of an enormous movie screen
showing beaches, desert high-
ways and Beyoncé, aka the
three things I want to see
right before I die.
THEY TREAT YOU LIKE A
KINGPIN. Walking into Fly-
wheel, I was met by a tablet-
bearing valet who took my
name, then another valet es-
corted me to my reserved bike
(already stocked with a towel
and Flywheel-branded water!)
and finely adjusted the seat to
my princess-and-pea stan-
dards. When class was over, a
latex-gloved crew rushed in to
quickly sanitize the fleet be-
fore the next class rushed in.
In the interim, the only thing I
needed to do was…ride a bike
like a maniac for 45 minutes.
THE INSTRUCTORS ARE
PRACTICALLY CELEBRI-
TIES—and very good at their
jobs. I’d had some bad spin-
ning instructors in the past—
yellers or stony, ambivalent
types—but at these classes,
there wasn’t a bad one in the
bunch. The teachers were en-
thusiastic, funny and accessi-
ble. The Cult of the Spinning
Instructor is strong; the most
beloved ones, like Soulcycle’s
Stacey Griffith, whom devo-
tees regard as a spiritual guru
as much as a trainer, sell out
their classes online in sec-
onds. I got the last bike in a
class with another popular
SoulCycle instructor a friend
recommended; it felt like scor-
ing Springsteen tickets.
SPIN CLASSES ARE
CHURCHES OF POSITIVITY. I
grew up with basketball
coaches who thought the best
way to teach me a jump shot
was to mock mine. This is why
I appreciated the thumbs-ups
from spinning instructors and
the incessant good vibes. We
may have been miserable be-
fore walking in that door, but
we are here to be happy!
(Plus: fitness, sweat, endor-
phins, etc.) Do not fear. It’s
less of an ooey-gooey positiv-
ity, more a “You’re a badass—
let’s go work off those Satur-
day margaritas” version.
CULT CLUB A Peloton
spinning class in
Manhattan. Below: the
IMAXShift studio, in
Brooklyn, where riders
pedal in front of a giant
movie screen.
structor tells you to. But it’s
hard to not whip yourself into
a frenzy seeing the flurry of
spinning legs, and at some
classes, like those at Flywheel,
screens at the front of the stu-
dio show how hard you’re
working in relation to others.
(The modest or easily humili-
ated can opt out.) At Swerve,
we were grouped into teams
so we could compete (good-
naturedly). I wanted my team
to win, and we did, which you
probably saw on ESPN.
SPINNING HAS EMBRACED
DATA (SORT OF). In the past
I found spinning to be a
strangely low-fi experience. In
contrast to elliptical machines
or StairMasters on the gym
floor, spin-class bikes were
basically data-free contrap-
tions with few accouterments
beyond water-bottle cages.
That’s changed. While not ev-
ery current spinning class
uses numbers—SoulCycle re-
mains decidedly numbers-
free—many have installed
meters on the bikes that de-
liver info like time, RPM (rev-
olutions per minute), speed
and some version of power.
with other riders, moving you
along using a power metric
called “watts per kilogram.”
Zwift also tracks functional
threshold power (FTP), or the
power you can sustain over a
period of time. Data like this
are not part of the typical
spinning experience, but
they’re an incredibly effective
way to track your progress.
(Or lack thereof.)
SPINNING IS NOT CYCLING.
As a snotty cyclist, I needed to
chill on this point. I had to ac-
cept that we weren’t just turn-
ing pedals—we were bouncing
off the seat and moving our
upper bodies up and down the
handlebars and lifting itty-
bitty weights and doing a lot
of aerobic-type things that
have no place in road cycling,
where a quiet upper body is
important. I did appreciate
that every class I took empha-
sized high RPM as opposed to
low-RPM grinding. It’s not
hard to see how these spin
classes could upgrade to Blue-
tooth-enabled bikes, which
could be manipulated by the
instructor, adding a new dy-
namic. Imagine that, instead
THERE IS A LOT OF TRIAL CYCLES
RIHANNA IN SPINNING. A 3 real patents that promise to make stationary
lot. I think Rihanna should get biking more purposeful, if not more thrilling
a royalty from all the spinning
classes in the U.S. This was
fine with me. I know there’s 2010
an abundance of music Thresher
choices, but I do not want to
go to a spinning class and lis-
ten to the Allman Brothers.
Sorry, Allman Brothers.
THE TIME I ALMOST THREW
UP was at IMAXShift, when
the screen showed us flying
off a canyon cliff like Thelma
& Louise, and I briefly felt a
rumble of nausea. That said, I
really loved IMAXShift. It was “The single individual feeds a panicle of grain into
the most transporting of all a thresher, drives the thresher to thresh the grain, win-
the classes I took, even if it nows the threshed grain with a winnower, and collects the
sometimes made me want to threshed grain, all concurrently.”
stop and watch a movie about
Mount Everest or singing
whales. 2015
Juicer
YES, THE PRICES ARE
NUTTY, about $30 per class
and up. (Revolve was the
cheapest, at $260 for 10.) I
spent a lot of time calculating:
Two $30 classes per week for
a year would run you over
$3,000, with which you could
buy a really, really sweet bike.
It helped to break the price
into line items: I thought of it
as $10 for the class, $10 for
the positivity and $10 to do it “...the output end of the speed change
in a place that doesn’t look mechanism is connected with the juicing
like it will give you the plague. mechanism and drives the juicing
mechanism to operate.”
ON THE OTHER FOOT…
price doesn’t seem to be an is-
sue for the devoted clientele. I 1977
heard it countless times: spin- Potter Wheel
ning makes you fit, it makes
you happy, it’s a lot cheaper
than therapy, and nobody asks
you about your parents.
WHAT I’M TRYING TO SAY
IS: I was wrong about spin-
ning. I get why it’s popular,
and I’m not going to dump on
it again.
ISAAC JAMES (PELOTON)

PEER PRESSURE IS PERSUA-
SIVE. Technically it’s easy to
cheat in spinning; nobody’s
going to bust you for pretend-
ing to turn up the resistance
on the bike when your in-
None of it, however, com-
pares to Zwift, the home cy-
cling program I downloaded
to my iPhone. Zwift doesn’t
have instructors but instead
puts you on a virtual course
of your having to turn a knob
two rotations to simulate
climbing a hill, the pedaling
simply got harder on its own.
No escape. No excuses.
Sounds terrible and glorious.
I LOST 87 POUNDS. OK: I lost
4 pounds. “The potter sits before the wheelhead while pushing
two pedals welded to a sprocket directly below him
SEVEN RIDES IN SEVEN which drives a chain turning the nearest sprocket
DAYS MAY HAVE BEEN A BIT of the power transfer shaft.”
MUCH. I’m tired.

BIKE BUDDIES
FOR THE OPEN ROAD
Prefer to ride a traditional bicycle? Use these gadgets
in lieu of a distracting smartphone as you pedal

ONCE, THE ONLY things cyclists needed to strap to their handlebars BeeLine Omata One SmartHalo
were a bell and a light. These days, we can’t imagine riding without an Function To free you from the tyranny Function A speedometer with analog Function Navigation via a ring of col-
iPhone (to access Google Maps) and a pair of earbuds (to listen to pod- of Google Maps, BeeLine impersonates dials. Full-face gauges show speed and ored lights. Also serves as a headlight
casts). Yet do we really need Google to intrusively alert us every time a compass, pointing directly toward a distance; two smaller hands record and a 105-decibel antitheft alarm.
the road or trail angles to the right? destination you enter on a phone. time-in-motion and feet climbed. No Test Ride Plug an address into a map
Technology has always been a dangerous distraction from traffic. Test Ride Biking without turn-by- phone required. app on your phone, and 24 lights will
Worse, it’s a distraction from everything that isn’t traffic: the nest with turn navigation is a liberating way to Test Ride The price and fabrication glow in various patterns to indicate up-
the bald eaglets, the wild grapevines dangling from the bluffs. We find explore—but inefficient if you need to (medical-grade polymer casing, Gorilla coming turns, even differentiating be-
ourselves biking through a national park and looking to Google for an al- arrive in a hurry, as when BeeLine Glass face) are aspirational. So is the tween a hard left and a soft. We some-
ternate route. tells you that the most direct path to layout, which tops out at 55 mph—per- times failed to notice the light show
Three new GPS-powered bike gadgets, however, harness less distract- your target is through the Mississippi haps only useful when the bike is at- (the app automatically reroutes). Unlike
ing designs to ask a fundamental question: If technology is ruining the River without a bridge nearby. Does tached to your roof rack. A simple plea- with a smartphone screen, our eyes felt
bike ride, could the solution be more technology? Here, the results of our the company offer inflatable bike pon- sure: watching the slender red needle blissfully free to wander. $180, preorder
road tests. toons? $119, beeline.co move around the dial. $699, omata.com at smarthalo.bike
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
THE WALL STREET JOURNAL. * * * * Saturday/Sunday, February 18 - 19, 2017 | D11

GEAR & GADGETS

FORD MOTOR COMPANY (INTERIOR); DAN NEIL/THE WALL STREET JOURNAL

MONUMENTAL ACHIEVEMENT The F-350 Super Duty Platinum
Crew Cab 4x4 has a towing capacity of nearly 5 tons.

RUMBLE SEAT DAN NEIL

FordF-350:TheCountryBoy’sRolls-Royce
I WISH I OWNED the ranch
that should come with Ford’s
F-350 Super Duty Platinum
Crew Cab 4x4 pickup. It must
be a magnificent spread, a
pickup’s idea of heaven, with
chores finally worthy of this
farmhand Hercules.
Plastic-wrapped bales
of grass wait to be hauled
from field to pasture. At
a half-ton per, you can stack
four of them in the cargo
bed (7,630 pounds capacity).
There are Clydesdales to
be delivered to wherever
Clydesdales are needed. With
a 20,900-pound gooseneck-
trailer rating, our F-350 can
pull a loaded eight-horse
trailer with enough left over
for each horse to have its
own blacksmith and person-
alized anvil.
Among the F-350’s talking
points is the optional “adap-
tive cruise control with
collision alert with brake
support for heavy trailers.”
This system allows drivers
to “maintain pace” in traffic
while traversing steep
grades, like the winding
California I5 “Grapevine.”
I bet the horses love that.
Ford’s Super Duty pickups
(F-250 and F-350, both with
gross-vehicle-weight ratings
over 6,800 pounds) are fresh
off a redesign incorporating
the company’s aluminum-
body construction, which has
shaved about 250 pounds off
the total weight. Ford’s alu-
minum body panels—so suc-
cessfully dinged, if you will,
in the Chevy commercials—
are still a tender subject,
I judge. The press materials
emphasize with special clar-
ity that the new truck’s
frame comprises 95% high-
strength steel and is “up to
24 times stiffer” than the
previous frame. What were
they made of before?
Also newsy is the top-
spec engine option: the
6.7-liter turbo-diesel V8,
a gently chuckling giant of
a powerplant, a veritable
Buddha of torque from
which tranquilly emanates
925 pound-feet of can-do
like it was nothing. Today
I’ll relocate the fishpond.
Before singing the praises
of this Ford, I should note
that Chevy/GMC and Ram
also offer highly competitive
heavy-duty offerings. Which
one is the best? I can’t say,
really, since I test vehicles
for only a couple of weeks,
while the proof of heavy-
duty pickups lies many years
down the road. Trucks like
these should properly be re-
garded as commercial vehi-
cles, evaluated in cost-per-
hour of operation, at least
insofar as they are claimed
as such on tax forms.
And here, dear readers,
I mean to make you uncom-
fortable, especially those
who scream bloody murder
over tax credits for electric
vehicles. This category of
truck qualifies for an in-
sanely generous federal tax
credit to small-business
owners who claim its use
is more than 50% business-
related. Which in no way
explains why you see so
many of these guys launch-
ing pleasure craft down at
the marina. Boats didn’t all
of a sudden get heavier,
you know.
In the case of our test
specimen, it is possible to
deduct the entire $78,585
in the first year of owner-
ship under the Section 179
deduction privilege rules.
You don’t find that the least
bit Keynesian?
Shrink in wonder
before the F-350’s
enormous crew cab,
looming like a skybox
over life’s arena.
This tax credit has created
its own dynamic in truck de-
sign, effectively making vehi-
cle size and power cheaper.
The result is a steady stream
of ever larger and more fan-
tastically able mega-pickups,
all wrestling for numerical
superlatives: best-in-class
towing, maximum payload
and gross combined weight
rating (GCWR, i.e., truck,
trailer and load, all in).
Example: With dual rear
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wheels, fifth-wheel hitch
and chassis cab, the F-350’s
GCWR soars to a stupen-
dous 41,800 pounds, which
Ford points out is more
than half the maximum
allowable weight for semi-
tractors on federal high-
ways. It would be a shame
if anything bad happened.
The F-350 touts another
figure that’s pretty remark-
able: a 48-gallon diesel fuel
tank (in Crew Cab/long-box
configuration). In my week-
long test, keeping a sched-
ule of work and play, I aver-
aged 14.2 mpg, giving the
truck a nominal, real-world
range of 681 miles between
fill-ups. I’ll need my motor-
man’s helper.
Speaking of undertaxed: I
was fresh out of Clydesdales
during my time with the
F-350, and I couldn’t find
anything properly heavy to
tow with it. However, the
week before, my friend Ezra
Dyer, a Popular Mechanics
editor, used the same truck
to tow a 13,000-pound
trailer “like it wasn’t there.”
This is one amazing oil-
burner: 6.7 liters of com-
pression-ignition with a
variable-geometry Garrett
turbocharger the size of a
bull raccoon snuggled in the
engine’s V. The reverse-flow,
four-valve cylinder heads
are aluminum, battened to
a compacted-graphite iron
block by way of six bolts per
cylinder. Powdered metal
con rods, aluminum pistons,
six-bolt mains, dual water
jackets per cylinder. Seems
stout enough.
Also intriguing is the HD
series air-to-water charge
intercooler, pulling heat out
of the air that the engine
consumes (cooler air is
denser air, resulting in more
horsepower).
At idle, the big diesel
ticks slowly and softly, the
rhythm of a sail-maker’s
sewing machine in a faraway
loft. In typical urban traffic,
you may occasionally hear
the rustling of diesel leaves
if you need to gain pace
quickly. Otherwise, just a
low, throaty hum. Out on the
highway, though, if you mat
the throttle and open the
V8’s oil spigots completely,
it will make a remarkable
and uncanny sound, a sudden
barometric dilation of con-
siderable energy, as if a door
had been thrown open by
ONLY ONE PALM BEACH
ONLY ONE RESORT
ONLY THE BREAKERS
a stiff wind. Did this thing
just make my ears pop?
In Los Angeles the tightest
ride might be an Audi R8 or…
well, who gives a damn? In
Red State America this thing
is about as aspirational as
it gets, a country boy’s Rolls-
Royce. I took it for a drive
in the deep country of North
Carolina, and the F-350 abso-
lutely whipped heads around
as people caught sight of it.
Behold that hurtling mirror
of a chrome grille, a lane-fill-
ing panoptic of doom. Shrink
in wonder before the F-350’s
enormous crew cab (131-
cubic-foot interior), looming
like a skybox over life’s
arena. Our truck included a
dual-pane panoramic roof
with power window shades
and a powered rear-window
hatch. Both front and rear
seats are heated and cooled.
Even the tow hooks are
blazed in chrome.
I have a neighbor, a 20-
something mason’s appren-
tice, who I thought was go-
ing to have a heart attack.
“How much?” he demanded.
And then I explained
the tax credit to him and,
lo, a young entrepreneur
was born.

A small mountain resort only 67 miles from Denver, and summer

2017 F-350 SUPER DUTY PLATINUM
CREW CAB 4X4
Base price: $63,285
Price, as tested: $78,585
Powertrain: Compression-ig-
nition, 6.7-liter, overhead-
valve, turbocharged diesel V8
with single-sequential turbo-
charger and reverse-flow cyl-
inder heads; six-speed auto-
matic; two-speed transfer
case with shift-on-fly four-
wheel drive.
Power/torque: 440 hp at
2,800 rpm/925 lb-ft at
1,800 rpm
Length/weight: 250.0
inches/7,494 pounds
Wheelbase: 159.8 inches
0-60 mph: 7.1 seconds
EPA fuel economy: N/A
Maximum payload: 6,540
pounds with 14,000-pound
GVWR
Maximum conventional
towing: up to 21,000 pounds
Cargo box capacity: 78.5
cubic feet
temperatures in the 70s, just outside of Rocky Mountain National Park in
the most beautiful lake area of CO. We have entertained reunions, families
with children & couples for over 60 years, accommodating 70 guests and
30 staff. Comfortable accommodations & fine dining for all meals included.
Entreé choices & special diets are accommodated. $289 per adult per day,
children ages 6-12 $229, and children under age 6 free (plus service & tax).
Open: June 11 to August 19, 2017
Activities - Mostly Included
Horseback riding & instruction Fishing guides & equipment -
Overnight Pack trips, kids rides Our chef will cook your catch
Lunch rides, wine & cheese rides Photography hikes by a professional
Guided hikes in Park Massage (extra) WiFi
Kid’s counselors - infants & up Landscape drawing class Saturday
Heated pool, hot tub & sauna Over 1000 videos for viewing in
Wildlife viewing - one of the your room
largest elk herds in the U.S. Champagne, shrimp, hors d’oeuvres
Jewelry classes - you can keep your & pianist at Sunday welcome party
creations (extra) Jazz trio for listening & dancing
Fitness center. Pets are welcome Free family reunion pictures
White water rafting (extra) Private hot tubs on patios (extra)
Magic/Comedy Show, Karaoke House wines & beers-complimentary
Golf & Tennis nearby Chef Tony’s Cooking Class every Friday
Some of our weeks for 2017 are filled, but we still have space in June, July, and
August. Website: www.laneguestranch.com E-Mail: lgrlane@aol.com.Telephone
Visit thebreakers.com, call 855-318-0628
Lloyd Lane on his direct line at 303-747-2176 or 303-747-2493 for brochures or consult your travel professional.
video, & availability.
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
D12 | Saturday/Sunday, February 18 - 19, 2017 * *** THE WALL STREET JOURNAL.