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The Crosstown
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Whats
News
Business & Finance
ig U.S. banks will likely
B have to bulk up their
balance sheets further to
protect against financial
shocks, Fed officials said. A1
 T. Rowe Price is expected
to announce a plan to reim-
burse clients who lost out
when it accidentally backed
the 2013 Dell buyout. A1
 Median CEO pay at big
U.S. firms fell 4.6% in 2015,
but the link between com-
pensation and shareholder
returns remained weak. B1
 J.P. Morgan CEO Dimon
warned of increased risk in
the booming $1 trillion
auto-lending market. C1
 Tribune said its board was
re-elected amid a bid by Gan-
nett, and that it would change
the firms name to Tronc. B1
 United and Delta are
among the suitors weighing
bids for Avianca, as airlines
world-wide seek tie-ups. B1
 The amount of global
sovereign debt with negative
yields surpassed $10 trillion
for the first time in May. C1
 The ECB voiced cautious
optimism on eurozone eco-
nomic recovery after leav-
ing stimulus unchanged. A12
 U.S. stocks edged higher
on a rally in health-care
shares. The Dow rose 48.89
points to end at 17838.56. C3
 A Redstone doctor said
the mogul retains the legal
mental capacity to make the
decisions he has made. B2
World-Wide
 Clinton assailed Trumps
foreign-policy positions,
portraying them as unin-
formed, unsophisticated
and dangerous. A1
 Ryan endorsed Trump for
president, ending the House
speakers hesitation over
the presumptive nominee. A4
 Trump escalated his at-
tacks on the judge presiding
over civil fraud lawsuits
against Trump University. A5
 Germany arrested three
suspected Islamic State
members from Syria for al-
legedly plotting to attack
the city of Dsseldorf. A6
 Germanys parliament
passed a motion calling the
killing of Armenians by Otto-
man Turks a genocide. A6
 Israeli and Palestinian of-
ficials have pushed Egypts
Sisi to take a lead role in talks
to restart a peace process. A6
 A bid to revamp the FAA
by House Republicans has
been sidelined by biparti-
san Senate opposition. A2
 Pop star Prince died of an
accidental overdose of the
synthetic opioid fentanyl,
according to a report. A3
 Greek lawmakers passed
fiscal measures required for
the next bailout tranche. A12
 An Indian court con-
victed 24 people over the
massacre of Muslims during
religious riots in 2002. A7
 Died: Roger Enrico, 71,
Pepsi CEO in cola wars. B3
CONTENTS
Business News. B2-3,5-6
Crossword................. B6
Election 2016.... A4-5
Global Finance........ C3
Heard on Street.... C8
In the Markets....... C4
s Copyright 2016 Dow Jones &
Company. All Rights Reserved
* * * * *
NASDAQ 4971.36 0.4% STOXX 600 344.35 0.1%
Fed to Push Big Banks on Capital
BY RYAN TRACY
AND DAVID REILLY
WASHINGTONThe biggest
American banks will likely have
to bulk up their balance sheets
further to protect against possi-
ble financial shocks, Federal Re-
serve officials said Thursday.
The new requirements could
crimp profitability and dividend
payouts at those firms, while in-
creasing pressure on them to
shrink.
Germany Arrests Syrians, Including a Migrant, as Terror Suspects
ULI DECK/EUROPEAN PRESSPHOTO AGENCY
ACCUSED: Authorities escorted to court Thursday one of three Syrians, seen here through a barrier, they say had planned an attack on Dsseldorf
for Islamic State. At least one was a refugee, which could further inflame the German and European debate over migration and security. A6
After Flub,
Investment
Firm Seeks
A Solution
BY LIZ HOFFMAN
AND SARAH KROUSE
After a nearly $200 million
blunder, one of Americas larg-
est mutual-fund companies is
racing to find a way to com-
pensate thousands of clients.
T. Rowe Price Group Inc. is
likely to announce as early as
next week a plan to reimburse
clients who lost out when it
accidentally voted in favor of
the 2013 buyout of Dell Inc. by
its founder Michael Dell, ac-
cording to people familiar
with the matter.
T. Rowe had vocally op-
posed the deal, saying it un-
dervalued the 30 million Dell
shares held by its mutual
funds. But a series of adminis-
trative errors caused the firm
to vote in favor of the deal,
disqualifying it from suing for
more money. Other holders
successfully sued and won
compensation from a judge,
who ruled earlier this week
that Mr. Dell and his partners
underpaid by $6 billion.
Such a misstep is rare and
embarrassing for the Balti-
more-based firm, one the big-
gest managers of U.S. retire-
ment assets and a major
Mansion.............. M1-12 holder of S&P 500 companies.
Opinion................. A9-11
Sports.......................... D8 T. Rowe had $764.6 billion in
Technology............... B4 assets under management at
U.S. News............. A2-3 the end of March.
Weather..................... B6
World News. A6-7,12
Trading and other opera-
tional missteps can happen at
mutual-fund firms, but voting
> errors on major deals like this
one are unusual. T. Rowes
costly mistake highlights how
the largely automated proxy
voting process is vulnerable to
human error. The company
Please see T.ROWE page A7
Steph: Choose
Your Superstar
ARENA | D1
FRIDAY, JUNE 3, 2016 ~ VOL. CCLXVII NO. 129 WSJ.com HHHH $3.00
10-YR. TREAS. 10/32 , yield 1.811% OIL $49.17 $0.16 GOLD $1,209.80 g $2.10 EURO $1.1153 YEN 108.87
Fed governors Daniel Tarullo
and Jerome Powell, in separate
public comments, said the cen-
tral bank would probably decide
thing like that, Mr. Powell said
at a banking conference. The
point is to raise capital re-
quirements to the point at
to meet those standards.
Thats not good for us, J.P.
Morgan Chase & Co. Chief Exec-
utive Officer James Dimon said
practices to meet the new
rules.
J.P. Morgan says current
rules require the bank during
to require eight of the largest which it becomes a question Thursday at a financial-investor normal times to maintain an ad-
U.S. banks to maintain more eq- that banks have to ask them- conference in response to the ditional capital buffer of 3.5% of
uity to pass the central banks selves. comments. The bank is the certain assets, compared with
annual stress tests, exams de- The change is likely to be countrys largest by assets and banks not considered systemic.
signed after the financial crisis
to measure the ability of banks
proposed formally later this
year and isnt expected to take
would be hardest hit by any
changes. Hopefully well be
That requirement previously
was 4.5% before the firm made
to weather a severe downturn. effect before 2018though able to adjust, Mr. Dimon said. Please see BANKS page A2
I have not reached any con- banks will have to start adjust- We put a lot of power, money,
clusion that a particular bank ing their finances sooner to people on to get these things  What Is a Bank? More on the
needs to be broken up or any- phase in the changes required right as we modify our business state of the industry....... C1, C4
Clinton
Launches
Broadside
At Trump
BY DAMIAN PALETTA
AND REBECCA BALLHAUS
SAN DIEGOHillary Clinton
delivered an opening salvo in
her expected November show-
down with Donald Trump, a
withering portrait of his for-
eign-policy positions as unin-
formed, unsophisticated and
dangerous.
In an address Thursday be-
fore a crowd of supporters here,
the Democratic presidential
front-runner used humor, con-
tempt and the presumptive Re-
publican nominees own words
to make her case that America
would make a historic mistake
by electing Mr. Trump president
and making him the commander
in chief.
Donald Trumps ideas arent
just different, she said. They
are dangerously incoherent.
They are not even really ideas
just a series of bizarre rants,
personal feuds and outright
lies.
Mr. Trumpwho has argued
U.S. IS WARY OF IRAQS
that Americas standing in the
world has declined under Presi-
dent Barack Obama and would
MILITIA COMMANDER
continue to slide if Mrs. Clinton
is electedslammed Mrs. Clin-
tons speech in an interview on
Iran-backed jihadist has beaten back ISIS, but could destabilize country
Thursday. It wasnt a foreign-
policy speech, it was a hate
speech, he said. She cant talk
BY NOUR MALAS The PMF is front and center this week as it
Please see SPEECH page A4
takes part in the offensive to retake Fallujah
BAGHDADBehind the rise of a paramili- from Islamic State. On Thursday, Iraqi forces
tary force in Iraq credited with saving the said they had paused offensive operations into
country from Islamic State is an Iran-trained the city as authorities scrambled to evacuate
jihadist the U.S. wants far from the battlefield. or protect civilians held as human shields by
A decade ago, the Iraqi known to U.S. offi- Islamic State.
cials as Jamal Jaafar Ibrahimi was in a cat- The PMFs role in the operation has already
and-mouse game with U.S. forces and on the frightened and angered Fallujahs Sunni resi-
run from a Kuwaiti death sentence for alleg- dents, who fear the Shiite-led force will carry
edly orchestrating bombings at the American out revenge killings in a city that has long
and French embassies there in the 1980s. The harbored Sunni extremists. It has also electri-
U.S. Treasury lists him as a terrorist. fied the country at large, cementing for many
Today, the shadowy figureknown mostly Iraqis the omnipresence of Iran and its affili-
by his nom de guerre, Abu Mahdi al-Mo- ates in their country. Roiling Court Fight
handesis the most influential commander in Fighters in the PMF credit Mr. Ibrahimi for
the Popular Mobilization Forces, or PMF. The saving their country from a wider onslaught Trump says judges
force of mostly Shiite Muslim recruits is Iraqs by Islamic State after it seized Mosul, the Mexican heritage is
parallel army, crucial in successes against Is- countrys second-largest city, in June 2014 conflict in case................... A5
lamic State in the past two years, filling the and pushed toward Baghdad and Erbil, capital
gap after the regular army crumbled and the of the semiautonomous Kurdistan region in  Ryan endorses Trump,
U.S. moved to help rebuild it. Please see IRAQ page A8 ending uncertainty........... A4
CEO Pay Goes South American Finds Fame, and Lots of Cockroaches, in Hanoi
Median pay for chief executives of
i i i
companies in the S&P 500 index
$12 million $11 million Cleanup hobbyist hops into mucky storm drains to retrieve trash
10 BY JAMES HOOKWAY stepped into Hanois canals and
floodways to clean up refuse
8 HANOIJames Kendall has voluntarily earlier in May, he
a dirty way of having of fun drew a few curious bystanders
6 that has made him one of Viet- and got a telling-off from a lo-
nams favorite Americans. cal government officer. He kept
4 Inching his way along a 4- up his cleanup act and sud-
foot-wide storm drain here in denly has become something of
2 the nations capital one after- a celebrity and a focus for the
noon last month, the 34-year- countrys growing environmen-
0 old schoolteacher was hoping James Kendall tal movement after the citys
2007 10 15 to map out some choke points mayor awarded him a medal.
caused by trash accumulating So, yeah it looks like On May 23, he was on the
Note: Data for 2015 are for 452 companies
with CEOs on the job at least a year and in the citys underground wa- theres a lot of stuff to check evening television news, sec-
which disclosed compensation data between terways. out this way. Whoa, theres ond only to a report on U.S.
July 1, 2015, and May 31, 2016. Theres some nasty stuff some nasty stuff, he said President Barack Obama lifting
Source: MyLogIQ
here, Mr. Kendall said, his ac- stuff including mud, plastic a Cold War arms embargo on
THE WALL STREET JOURNAL. tions captured by a GoPro cam- bags, bits of trees and possibly Vietnam during his state visit.
ANOMALOUS: Executives pay era on his chest and a lamp on worse. What is that? Its People Mr. Kendall meets in
fell 4.6% and didnt sync well his head. Theres some nasty nasty. Hanoi cafes often ask him to
with corporate performance. B1 stuff there, too. The first time Mr. Kendall Please see TRASH page A8
A2 | Friday, June 3, 2016 * *** THE WALL STREET JOURNAL.

FAA Revamp Likely Blocked by Senate
Shift of control to
nonprofit corporation
will likely halt, stopgap
funding bill looms
BY ANDY PASZTOR
WASHINGTONA bid by
House Republicans to shift the
federal air-traffic control sys-
tem to a nonprofit corpora-
tions control has been side-
lined by bipartisan Senate
opposition, according to con-
gressional staffers, airline in-
dustry officials and others
participating in the process.
Continuing disagreements
between senators and the Re-
publican chairman of the
House Transportation and In-
frastructure Committee over a
Federal Aviation Administra-
tion reauthorization bill have
created a legislative logjam,
these people said, likely to last
until at least next spring or
summer.
The anticipated result, ac-
cording to interviews during
an industry conference here, is
that the agency will be hob-
bled with another brief, stop-
gap funding bill that all sides
had hoped to avoid. Such an
outcome would maintain the
FAAs basic spending levels
and programs, while prompt-
ing uncertainty about new pol-
icy initiatives and leaving the
agency without longer-term fi-
nancial stability that would
benefit its efforts to modern-
ize the nations aging air-traf-
fic control system.
A temporary extension also
U.S. NEWS
would be a blow to Rep. Bill
Shuster of Pennsylvania, the
House committees Republican
chairman, who has maneu-
vered for nearly two years to
pass a major restructuring of
the FAAs traffic-control net-
work and its roughly 38,000
workers. His panel has ad-
opted the sweeping structural
and revenue changes, but the
measure hasnt reached the
House floor. The Senate over-
whelmingly approved a bill in
April that doesnt include any
of those controversial provi-
sions.
In a presidential election
year, according to industry offi-
cials on both sides of the de-
bate, time is quickly running
out to hammer out any compro-
mise with the Senate. Current
FAA legislation expires July 15.
Some of the most telling
comments came from propo-
nents of Rep. Shusters pro-
posal, who acknowledged it
was essentially dead for the
short term. Paul Rinaldi, presi-
dent of the controllers union
and a supporter of the House
measure, said in an interview:
I would be really, really sur-
prised if anything other than
an extension came out that
pushed reauthorization into
early 2017. Given summer leg-
islative schedules and the
election, he added, lawmakers
have only a handful of days
to try to resolve something.
Gerald Dillingham, a senior
Government Accountability Of-
fice official who hasnt taken
sides in the debate, acknowl-
edged the same dynamics have
run out the clock on the House
position. Were not really
thinking that this decision is
necessarily going to come in
2016, he told the conference.
The FAAs leadership, whip-
sawed by draconian budget
cuts and employee furloughs
in previous years, has indi-
cated it is prepared to live
with a temporary extension.
Unlike those earlier times,
were not really expecting a
budget crisis, Michael Whita-
ker, the FAAs No. 2 official
said during a speech to the
conference Wednesday. Were
in a relatively stable place
with regard to air-traffic up-
grades, he said.
A staffer for Rep. Shuster
said his boss has not made a
decision yet, adding that his
game plan will become clearer
in the next few weeks. But ac-
cording to people familiar
with the chairmans thinking,
he has concluded that a plain-
vanilla extension may leave
him in a stronger position to
resume the debate in 2017 and
try to win converts than a lon-
ger extension incorporating
various Senate proposals.
A spokeswoman for the ma-
jor U.S.-airline trade associa-
tion, which also has strongly
backed Rep. Shuster, said if
we want to continue to have
the safest air traffic control
system in the world, we need
to modernize technology and
ensure the system cant be in-
terrupted by congressional
budget impasses. We continue
to believe this transforma-
tional change is necessary.
Susan Carey in Chicago
contributed to this article.

Pell Grant Surplus Gunman in UCLA Shooting Identified; Kill List Is Found

Seen for Next Year

BY MELISSA KORN
The Pell Grant program, a
federal financial aid offering
earmarked for the neediest
college students, is expected
to have a $7.8 billion surplus
next year. The fight is on to
and fewer students qualify for
the aid as their families con-
tinue to recover from the reces-
sion, according to Robert
Kelchen, an assistant professor
of higher education at Seton
Hall University.
Messrs. Scott and Hinojosa

DAVID CRANE/LOS ANGELES DAILY NEWS/ZUMA PRESS

claim that money.
Reps. Robert Scott (D., Va.)
and Rubn Hinojosa (D., Texas)
sent a letter Thursday urging
leaders of the Senate and
House appropriations subcom-
mittees that deal with educa-
tion and human services to
keep the funds in the Pell pro-
gram for fiscal 2017.
We are concerned there
will be proposals to raid Pell
to address other funding
needs, Messrs. Scott and Hino-
josa wrote.
They said those needs
should be met through other
resource allocations, rather
than on the backs of college
students.
The congressmen are trying
to act pre-emptively, according
to a spokeswoman from the
House Committee on Educa-
tion and the Workforce, as dis-
cussion builds in Washington
that appropriations represen-
tatives in the Senate may try
to move funds to other priori-
ties. Mr. Scott is the ranking
member on that House com-
mittee.
In March, the Congressional
Budget Office updated its Pell
funding expectations, project-
ing a temporary $7.8 billion in
surplus balances for the
roughly $30 billion program
because of lower-than-ex-
pected costs.
The government hasnt doled
out as much money as antici-
pated because college enroll-
ments have declined slightly
called to increase maximum
Pell disbursements to $6,055
a student for the 2017-18 aca-
demic year, up from the
$5,815 cap already set for the
2016-17 year.
While student loans must be
repaid, students arent on the
hook for grant fundseven if
they withdraw from school be-
fore graduation.
Pell funds often cover a frac-
tion of tuition costs, but there
have been cases of students at
lower-priced institutions abus-
ing their Pell disbursements by
spending the money on other
expenses without ever intend-
ing to complete their courses.
Messrs. Scott and Hinojosa
also encouraged appropria-
tions subcommittee leaders to
allow students to receive Pell
funds year-round, not just
during the traditional aca-
demic year.
Proponents on both sides of
the aisle say resuming year-
round disbursementsa fea-
ture that was cut in 2011 to
save overall Pell maximum
payoutswould allow some
students to speed up their ed-
ucational pursuits by having
tuition costs covered for sum-
mer courses.
The White House has rec-
ommended a return to year-
round Pell Grants, as well as a
$300 annual bonus for grant
recipients who take at least 15
credits a semester, an attempt
to encourage on-time gradua-
tion.
MOURNING: UCLA students embrace in front of the Bruin bear Thursday, a day after an engineering professor was fatally shot by a
former doctoral student, who then turned the gun on himself, police said. Mainak Sarkar, 38, who allegedly shot Professor William Klug,
had a kill list and may have earlier killed a woman in Minnesota and intended to kill another professor, officials said.
BANKS
Continued from Page One
some moves to shrink over the
past year.
Citigroup Inc., Bank of Amer-
ica Corp. and others face similar,
though less strict, capital sur-
charges, which are tailored to a
banks size, complexity and links
to other firms, aiming to capture
their impact on the financial
system. The other banks covered
are Goldman Sachs, Morgan
Stanley, Wells Fargo & Co., State
Street Corp. and Bank of New
York Mellon Corp.
Meanwhile, the Fed said
Thursday it would announce re-
sults of its annual stress tests on
June 23 and June 29, first on
how banks performed on the
stress tests and then whether it
has approved the capital plans
of the largest banks, including
whether they will be able to in-
crease dividends and share buy-
backs.
Thursdays proposal is the
latest salvo in a battle between
banks and regulators since the
financial crisis over how much
the largest banks need to reori-
ent their business models to
protect against the possibilities
of big losses and another tax-
payer bailout. Wall Street argues
the banks have done enough al-
ready to guard against another
crisis and that any further tight-
ening risks undermining the vi-
tality of the financial system.
Its a tax on banking, Gold-
man Sachs Group Chief Econo-
mist Steven Strongin said
Thursday at a banking confer-
ence, referring broadly to new
rules that he said go beyond
what would have been required
to prevent the 2008 crisis. This
hurts those individuals that are
dependent on banking services,
such as midsize companies,
small businesses and low-in-
come consumers, he said.
Regulators say they are still
not convinced the banks have
evolved sufficiently to reduce
the danger that they could de-
stabilize the financial system, by
simplifying their sprawling busi-
ness structures or making them-
selves smaller. The new capital
rules previewed Thursday by
Messrs. Tarullo and Powell
werent prompted by any new
warning signs that have
emerged in the financial system
but rather are part of the Feds
gradual process of weighing new
safeguards since the crisis.
Effectively, this will be a sig-
nificant increase in capital, Mr.
Tarullo said on Bloomberg tele-
vision. He said the extra capital
was necessary in case big banks
face a danger that the Feds an-
nual stress test didnt predict.
Mr. Powell said that the Feds
move would go beyond existing
rules to make big banks fully
internalize the risk they pose to
the economy. While some critics
want to break up these large
banks, the Fed has instead
sought to force them to tighten
capital and other rules they
must follow, effectively taxing
their size.
Mr. Powell also said the bene-
fits of such rules are likely to
outweigh the risk that they
would hamper the smooth func-
tioning of markets, by forcing
banks to pull back from their
market-making role.
The specific change that
Messrs. Tarullo and Powell pre-
viewed Thursday involves taking
the higher capital requirements
big banks now face during nor-
mal timesthe surcharge for
The rule sends a
clear message to big
banks: Staying large
will be costly.
being bigand forcing them to
meet those standards during pe-
riods of stress as well. That ef-
fectively forces those institu-
tions to hold even more capital
on their books throughout the
business cycle, as capital levels
would likely fall during a reces-
sion when losses would rise. Fed
officials have long said they
were considering such a require-
ment, but these were the most
explicit comments confirming
that they are likely to impose
that rule.
The potential inclusion of
these new surcharges in future
stress tests has been a concern
of both bank executives and in-
vestors for some time. The Fed-
administered tests have become
a constraint for banks and many
executives now manage with
these exercises in mind. That
isnt surprising given the tests
importance in banks getting the
Feds blessing on paying divi-
dends and buying back stock.
But it also means banks are
constantly trying to adjust to
a shifting regulatory environ-
ment. The stress tests are
something of a black boxin-
tentionally designed by the
Fed as such to keep banks
from trying to game them. So
that keeps banks off balance,
even as they spend millions
and hire thousands on compli-
ance efforts meant to satisfy
regulators and pass the tests.
Bank-stock investors seemed
to take the news in stride.
Shares of the biggest banks
were mixed Thursday as the
broader market fluctuated dur-
ing the day. That in part re-
flects the opaque nature of the
stress tests, which are difficult
for analysts to model. Shares of
the biggest banks are still
mostly down year to date, even
as the S&P 500 has eked out a
small gain. So, investors are
less likely to punish them fur-
ther for rules that could take
some time to kick in.
Emily Glazer
contributed to this article.

CORRECTIONS  AMPLIFICATIONS
U.S. Solicitor General
Boeing Co. shares fell $3.07,
or 2.4%, to $126.15 on Tuesday.
A photo caption with an In the
The Consumer Financial
Protection Bureaus proposed
rule on payday loans is 1,334
To Leave Office Soon
Markets article Wednesday pages long. A Money & Invest- BY JESS BRAVIN CNN commentator who called
about Tuesdays stock trading ing article Thursday about the his 2012 argument defending
incorrectly said they fell $1.76, rule incorrectly said it is 1,549 WASHINGTONU.S. Solici- the Affordable Care Act a train
or 2.6%, to $65.41. pages. tor General Donald Verrilli, the wreckonly to see the justices
litigator who won landmark Su- uphold nearly all of the law by a
Readers can alert The Wall Street Journal to any errors in news articles by preme Court decisions advanc- 5-4 vote.
emailing wsjcontact@wsj.com or by calling 888-410-2667. ing the Obama administrations Mr. Verrillis immediate plans
health care, same-sex marriage werent announced, other than a
THE WALL STREET JOURNAL (USPS 664-880) and immigration policies, will long vacation he may begin be-
(Eastern Edition ISSN 0099-9660) (Central Edition ISSN 1092-0935) step down June 24. fore all of the court terms deci-
(Western Edition ISSN 0193-2241)
Editorial and publication headquarters: 1211 Avenue of the Americas, New York, N.Y. 10036 Mr. Verrillis term was sions are announced.
Published daily except Sundays and general legal holidays. marked by several legal chal- Officials on Wednesday said
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was at times skeptical of the Mr. Verrilli, 58, who worked
Letters to the Editor: Fax: 212-416-2891; email: wsj.ltrs@wsj.com administrations agenda. He in the White House Counsels
took the position in June 2011, Office before his appointment,
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By phone: 1-800-JOURNAL (1-800-568-7625) His success surprised many and what he stood for, he said
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court observers, including a in a 2012 interview.
 THE WALL STREET JOURNAL.
JESSICA EBELHAR FOR THE WALL STREET JOURNAL
Dora Wilson, at home in Georgetown, Ind., contracted HIV after injecting drugs with contaminated needles, but has been clean for 10 months.
CDC Maps Outbreak Risks
Agency lists counties
prone to HIV and
hepatitis C spreading
among drug users
BY ARIAN CAMPO-FLORES
AND BETSY MCKAY
AUSTIN, Ind.In this rural
town, the forces of poverty and
addiction drove a needle-shar-
ing drug problem that caused
the first-known HIV outbreak
related to the current opioid
crisis in America.
Now, as Austin struggles to
recover from its outbreak last
year, the Centers for Disease
Control and Prevention has
identified 220 counties across
the U.S. where similar condi-
tions create vulnerability to
eruptions of HIV and hepatitis C.
At last count, 194 people
were infected, almost all in
Scott County, where Austin is.
The lifetime cost of treating
the HIV patients, as well as
those with hepatitis C, could
approach $100 million, the
CDC estimates. At that rate,
the total price tag for treating
similar rashes in a fraction of
the flagged counties could sur-
pass $1 billion. You can see
this coming at you double-bar-
reled, said Judith Feinberg, a
professor at West Virginia Uni-
versity School of Medicine.
The HIV outbreak here
which started in December
2014 and tapered off last sum-
merstrained the public-
health system and highlighted
the potential threat confront-
ing other rural areas overrun
by heroin and prescription
painkillers.
To find counties most vul-
nerable to an outbreak of HIV
or hepatitis C, researchers ana-
lyzed factors including phar-
Pop Star Prince Died
From Opioid Fentanyl
BY KRIS MAHER
AND ARIAN CAMPO-FLORES
A Minnesota medical exam-
iner found that pop star Prince
died of an accidental overdose
of the synthetic opioid fenta-
nyl, according to a report re-
leased Thursday, ending weeks
of speculation surrounding the
iconic performers death.
The revelation is likely to
raise the profile of fentanyl in
a national debate among law-
enforcement officials and
elected leaders about ways to
stem a growing opioid epi-
demic.
The 57-year-old musician
was found at his residence
outside Minneapolis on April
21 with prescription painkill-
ers, which often contain opi-
oids, in his possession, a law-
enforcement official said. He
died on the day he was set to
meet with the son of a well-
known addiction specialist.
The Midwest Medical Ex-
aminers Office in Ramsey,
Minn., said the death was an
accident due to self-adminis-
tered fentanyl.
The report included only
the manner and cause of
death, and the office said that
all other medical examiner
data is considered nonpublic
under Minnesota state law.
Fentanyl, a synthetic nar-
cotic up to 50 times as power-
ful as heroin, is the latest
U.S. NEWS
Where Disease Eruption Is a Threat
A CDC report identied 220 counties where factors such as
unemployment rates, overdose deaths and sales of prescription
painkillers contribute to a high vulnerability for outbreaks of HIV
and hepatitis C among injection drug users.
Counties vulnerable to outbreaks of HIV and hepatitis C
Mont.
Nev. Utah
Colo.
Calif.
Ariz.
Texas
Source: Centers for Disease Control and Prevention
macy sales of prescription
painkillers, overdose deaths
and unemployment rates.
Of the 220 countiesout of
more than 3,100 in the U.S. and
including Scott Countymost
are rural; 56% are in Kentucky,
Tennessee and West Virginia,
in the Appalachian region hard-
est-hit by the opioid crisis. The
remainder are scattered across
22 other states, from California
to Maine. The CDC analysis was
reviewed by The Wall Street
Journal and is scheduled for
publication in the Journal of
Acquired Immune Deficiency
Syndromes.
Our main goal was to pre-
vent this from happening again,
and this is one way we think
we can help jurisdictions, said
John Brooks, senior medical
advisor for the CDCs Division
of HIV/AIDS Prevention and
lead author of the analysis.
The CDC shared the results
with the 25 affected states, urg-
ing them to step up testing for
scourge in the opioid epi-
demic. In 12 states hit hard by
the crisis, more than 5,500
people died of fentanyl-related
overdoses between 2013 and
2015, according to data previ-
ously compiled by The Wall
Street Journal. In Minnesota,
which isnt among those 12
states, there were 36 fentanyl-
related fatalities in 2015, ac-
cording to data provided ear-
lier this year by the Minnesota
Department of Health.
Fentanyl has long been used
legally to treat people with se-
vere pain, such as cancer pa-
tients. That form of the drug
is sometimes diverted for ille-
gal use. But increasingly, drug
dealers are selling illicitly
made fentanyl manufactured
mainly in Mexico and China,
according to the Drug Enforce-
ment Administration.
That fentanyl is often mixed
with heroin to make it more
potent and sold to users who
sometimes dont realize they
are buying it.
A real question [in Princes
death] that remains is what
kind of fentanyl was it, said
James Hall, an epidemiologist
at the Center for Applied Re-
search on Substance Use and
Health Disparities in Miami.
The illicit versions are more
dangerous, he said. In a batch
of counterfeit pills, some may
be at relatively low dose and a
few highly potent.
* *
Maine
Vt.
Austin, Ind. Mich.
Pa.
Ind. Ohio
W.Va.
Mo. Ill. Va.
Kan.
Ky.
Tenn. N.C.
Okla.
Ark.
Ga.
Miss. Ala.
THE WALL STREET JOURNAL.
HIV and hepatitis C in places
frequented by injection drug
users and to develop plans to
respond to potential outbreaks.
But, Dr. Brooks said, that
doesnt mean these are the only
places that have a problem. He
said the agency urged states to
review their own, more de-
tailed data. Officials in Ken-
tucky, Tennessee and West Vir-
ginia said they welcomed the
analysis and have added more
testing and services in at-risk
communities.
Nationally, HIV infections
due to injection drug use have
declined sharply: More than
30% of new HIV infections were
attributed to injection drug use
in the mid-1990s, compared
with just under 6% in 2014, Dr.
Brooks said.
The experience in Austin, a
town of 4,200 people in south-
eastern Indiana, illustrates the
challenges. The underlying ad-
diction that fueled the outbreak
persists mostly unabated.
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Jerome Adams, the Indiana
state health commissioner,
said the HIV outbreak is
800 843 3269 | TIFFANY.COM
largely contained, with only a
handful of new cases in the
past six months.
William Cooke, Austins sole
full-time doctor, treats about
110 HIV-positive patients, and
his office is connected to a
new clinic run by the AIDS
Healthcare Foundation that
dispenses antiretroviral drugs.
In a neighborhood at the cen-
ter of the epidemic, the Scott
County Health Department op-
erates a syringe exchange for
addicts to swap used needles
for clean ones.
Nine other counties in Indi-
ana are cited as vulnerable in
the CDC study, most in the
southeastern region. The state
secured new funding to test
for HIV and hepatitis C, and
syringe exchanges operate in
four counties, including Scott.
When she tested HIV-posi-
tive a year ago in Austin, Dora
Wilson was rake-thin and in- Pioneering since 1906.
jecting the painkiller Opana
bought on the streets. After For the pioneer in you.
overdosing, she lost custody of
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Shortly after, she secured a Crafted for New Heights.
spot at Providence House, a
residential treatment facility
for families in Georgetown,
Ind. A judge allowed her to re-
unite with her granddaughters,
and she now lives with them in
a three-bedroom home
adorned with their letters and
paintings. She has been clean
for 10 months.
I never thought Id get that
demon off my back, Ms. Wil-
son said. Im full of hope and
peace.
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 A4 | Friday, June 3, 2016
Ryan Backs Trump, Ending Uncertainty
The House speaker
had hesitated to
endorse the GOPs
presumptive nominee
BY KRISTINA PETERSON
AND SIOBHAN HUGHES
House Speaker Paul Ryan
(R., Wis.) on Thursday en-
dorsed Donald Trump for pres-
ident, ending the highest-rank-
ing elected Republicans public
hesitation over the GOPs pre-
sumptive presidential nominee.
Mr. Ryans decision to back
Mr. Trump flattened one of the
last remaining hurdles the New
York businessman faced in
winning over the partys top
leaders and donors. Though
other prominent Republicans
have refused to endorse Mr.
Trump, the House speakers ac-
ceptance of the contentious
real-estate mogul effectively
blunted any remaining momen-
tum in the wing of the GOP
that had once sought to stop
MIKE BLAKE/REUTERS
Democratic candidate Hillary Clinton speaks about national security in San Diego on Thursday.
SPEECH
Continued from Page One
about foreign policy because
shes made so many mistakes.
Mr. Trump, speaking Thurs-
day evening in San Jose, echoed
those points later and called
Mrs. Clintons speech pathetic.
Mrs. Clintons address likely
marks the beginning of a gen-
eral-election debate that will be
bruising. Mr. Trump already has
begun portraying Mrs. Clinton as
untrustworthy, a tack designed
to play on her biggest vulnera-
bility with voters.
Mr. Trump also has high-
lighted the attack on a U.S. com-
pound in Libya that led to the
death of a U.S. ambassador and
others while Mrs. Clinton was
head of the State Department. In
a March debate, he accused her
of failing to intervene to save
those who were killed in Beng-
hazi. Guess what, when the
phone rang, she wasnt there,
he said.
The speech came as Mrs.
Clinton is locked in a tough race
with Democratic rival Sen. Ber-
nie Sanders ahead of Californias
primary on Tuesday. Mr. Trump
was scheduled to speak Thurs-
day night at a campaign rally in
San Jose, Calif.
Mrs. Clinton made clear on
Thursday her principal line of at-
tack will be on Mr. Trumps tem-
perament and unpredictability.
He is not just unpreparedhe
is temperamentally unfit to hold
an office that requires knowl-
edge, stability and immense re-
sponsibility, she said. Noting
that the president has the power
to launch nuclear weapons, she
added: Do we want him making
those callssomeone thin-
skinned and quick to anger, who
lashes out at the smallest criti-
cism? Do we want his finger any-
where near the button?
In his interview, Mr. Trump
dismissed Mrs. Clintons ques-
tions about his temperament. If
people want to win, they need a
temperament like mine, he said.
If people want to stagnate and
Mr. Trumps ascent.
In an opinion piece in his
hometown newspaper, Mr.
Ryan said he would vote for
Mr. Trump after having spoken
with him about policy issues.
In early May, the speaker had
said he was not ready to
back the candidate, launching
an awkward dance between the
two.
Its no secret that he and I
have our differencesAnd
when I feel the need to, Ill
continue to speak my mind,
Mr. Ryan wrote in the Janes-
ville Gazette. But the reality
is, on the issues that make up
our agenda, we have more
common ground than disagree-
ment.
Mr. Trump in a tweet Thurs-
day said it was great to have
the speakers support. We will
both be working very hard to
Make America Great Again! he
added.
GOP leaders and donors had
already been coalescing behind
Mr. Trump, who last week se-
cured the delegates he needs
go down, they need a tempera-
ment like Crooked Hillary.
Polls show that foreign policy
is one of Mrs. Clintons biggest
advantages over Mr. Trump. A
Wall Street Journal/NBC News
poll released last month found
56% of voters said Mrs. Clinton
would be better able to handle
foreign policy, compared with
29% who picked Mr. Trump. The
survey gave her a 10-point ad-
vantage on who would be the
better commander in chief.
The two candidates ap-
proaches to foreign policy are
markedly different. Mrs. Clinton
is considered a hawk of the left,
willing to take risks and engage
in overseas skirmishes in order
to project U.S. power and protect
key alliances. She has spent
more than two decades criticiz-
ing Chinas human-rights record
and has referred to Russian
President Vladimir Putin as a
bully.
But she has faced criticism
for not anticipating the chaotic
results of the Arab spring that
began in late 2010, which top-
pled several governments and
continues to fuel Mideast wars.
Republicans will also highlight
Mrs. Clintons support for the
Iran nuclear deal, which Mr.
Trump called a disaster on
Thursday, and the scandal over
her use of a private email server
as secretary of state.
Mr. Trump has characterized
his foreign-policy vision as
America First. He has called
for increasing the size of the U.S.
military, but using it more spar-
ingly. He would pull back from
global conflicts that he believes
dont serve any U.S. interest, and
let foreign countries defend
themselves.
Mrs. Clinton questioned Mr.
Trumps seemingly admiring
comments about Mr. Putin,
which Mr. Trump has said were
taken out of context; his dis-
missal of the threat posed by
North Korea leader Kim Jong Un;
and his statement that the Chi-
nese government acted with
strength in ending protests in Ti-
ananmen Square in 1989. She
added that she would leave it to
P W L C 10 11 12
to become the Republican
presidential nominee and take
on likely Democratic nominee
Hillary Clinton in November.
The op-ed piece in the Wiscon-
sin paper was published just as
Mrs. Clinton delivered a major
foreign-policy address in which
she called Mr. Trumps posi-
tions dangerously incoherent.
Democrats welcomed the
Ryan endorsement, saying Re-
publicans now couldnt avoid
being linked to Mr. Trump,
which they hope would weigh
down GOP lawmakers in swing
states.
Speaker Ryans abject sur-
render makes it official: the
GOP is Trumps party now,
said Adam Jentleson, a spokes-
man for Senate Democratic
Leader Harry Reid.
Mr. Ryan has been under
pressure from many Trump al-
lies on Capitol Hill to help the
GOP unify well ahead of its
July convention in Cleveland,
where Mr. Ryan is slated to
serve as the chairman. Mr.
Trump and a coterie of advis-
the psychiatrists to explain his
affection for tyrants.
Mrs. Clintons speech was
equal parts talking up her own
record and trying to shred her
GOP rivals. She mentioned twice
that she was in the White
Houses Situation Room when
Mr. Obama gave the order to kill
Al Qaeda leader Osama bin
Laden, and she contrasted this
with Mr. Trumps business ca-
reer, which has included the de-
velopment of golf courses and
casinos.
Theres no risk of people los-
ing their lives if you blow up a
golf course deal, but it doesnt
work like that in world affairs,
she said.
Just a few hours before Mrs.
Clintons broadside, Mr. Obama
offered a more subtle critique of
Mr. Trumps foreign-policy ap-
proach. We cannot turn inward,
we cannot give in to isolation-
ism, Mr. Obama told graduates
at the Air Force Academy in Col-
orado Springs. Thats a false
comfort.
Mr. Trump has, at times,
backtracked on some of his more
controversial statements. He had
insisted that he would direct the
U.S. military to torture terror
suspects, but reversed course
and said he would instead seek
to change the Geneva Conven-
tions to allow more aggressive
interrogation techniques.
Mr. Trump has said his readi-
ness to challenge existing U.S.
policy is what is needed to reas-
sert global leadership and pre-
vent other countries from
laughing at us.
When you rattle someone,
thats good, Mr. Trump said re-
cently in North Dakota. If
theyre rattled in a friendly way,
thats a good thing.
He has also said that Mexico
and China fleece the U.S. with
dodgy trade practices, and that
terror groups have exploited
weak immigration laws to infil-
trate European and U.S. cities.
He has demanded that countries
such as Germany, Japan, South
Korea and Saudi Arabia pay the
U.S. for military protection, or he
will withdraw military support.
H T G K B F A M 1 2 3 4 5 6 7 8
ANDY MANIS/ASSOCIATED PRESS
House Speaker Paul Ryan
ers visited Capitol Hill last
month to meet with Mr. Ryan
and other congressional GOP
leaders, and the two leaders
spoke on the phone last week.
I was confident that he
would find Donald Trump to be
a listener; someone who shares
our basic policy issues, said
Rep. Chris Collins of New York,
Seattle House Campaign
Shifts Harder to the Left
BY KRISTINA PETERSON
SEATTLECandidates for
the U.S. House seat in one of
the countrys most liberal dis-
tricts faced a grueling final
question in a debate last week:
name the most conservative
position you hold.
Thats going to stump me,
said state Sen. Pramila Jaya-
pal, a longtime immigration
activist endorsed by Demo-
cratic presidential candidate
Sen. Bernie Sanders. One of
her rivals, King County Coun-
cil Chairman Joe McDermott,
named being willing to talk to
conservatives as his most
right-leaning stance.
Here in Seattlehome to
organically maintained public
parks and billboards advertis-
ing dairy-free ice creama
fierce race is under way to
succeed Rep. Jim McDermott,
who is retiring after nearly
three decades in the House
and isnt related to Joe Mc-
Dermott.
When he took office in
1989, Jim McDermott repre-
sented the most liberal edge of
the Democratic Party. That
line has moved to the left in
the intervening years, a shift
that is reflected in the issues
this new generation of liberals
is emphasizing, including cli-
mate change and income in-
equality.
Mr. McDermott, the incum-
bent, was known nationally for
his focus on a single-payer
health care system and his
outspoken criticism of Presi-
dent George W. Bush over the
war in Iraq.
Those seeking to succeed
him are jockeying to see who
can be the most liberal and
provide the most stark possi-
ble contrast to presumptive
GOP presidential nominee
Donald Trump.
On the same day that Mr.
Trumps supporters, 1,100
miles south at a California
rally, chanted to build a wall to
POLITICS COUNTS | Dante Chinni
Californias Big Divide
Hillary Clinton leads Sen. Bernie Sanders by a mere 2 percentage
points ahead of Californias Democratic primary Tuesday, a recent
Wall Street Journal/NBC News/Marist poll finds. Mr. Sanders does
best in rural areas while Mrs. Clinton excels in metropolitan ones.
Percentage of 2008 Democratic primary vote,
by region
Coastal
region
13%
Redding
Sacramento
San Francisco
Bay area
24%
Los Angeles County
28%
Sources: WSJ/NBC News/Marist telephone poll 557 likely Democratic primary voters,
conducted May 2931; margin of error: 4.3 pct. pts. (polls); U.S. Census (white pct.)
9 O I X X *****
the first House Republican to
endorse Mr. Trump.
Mr. Ryan was becoming one
of the last remaining holdouts
in his party, as even some
Trump skeptics had acknowl-
edged that he had won the na-
tional votes needed to make
him the GOP nominee. Senate
Majority Leader Mitch McCon-
nell (R., Ky.) backed Mr. Trump
as soon as his final rivals
dropped out after the Indiana
primary in early May.
Rep. Kevin Cramer (R., N.D.)
said both Messrs. Ryan and
Trump told him they were en-
couraged by the phone conver-
sation they had last Wednes-
day. Mr. Ryan took away from
the talk that House Republi-
cans were helping shape that
agenda not only for ourselves,
but also for Mr. Trumps cam-
paign, said Mr. Cramer.
Mr. Ryan said he had been
encouraged when Mr. Trump
last month released a list of 11
possible candidates to fill the
Supreme Court vacancy.
Some Republicans are con-
keep out immigrants from
Mexico, the slate of House can-
didates in Seattle all agreed on
the need for legislation to al-
low many of the 11 million ille-
gal immigrants living in the
U.S. to become citizens.
While a national debate
rages over which public-school
bathrooms transgender stu-
dents may use, two gay male
candidates in the Seattle race
openly discussed their hus-
bands on the campaign trail
and in a televised debate.
And a time when Mr.
Trumps nativist rhetoric has
resonated with working-class
white men, the top three can-
didates here all advocated for
prioritizing racial equity in
policy decisions and unequivo-
cally selected black lives mat-
ter when asked to choose be-
tween that statement and one
affirming the value of all lives.
The candidates are
jockeying to provide
the starkest contrast
to Donald Trump.
Black lives matter, full
stop, said state House legisla-
tor Brady Piero Walkinshaw,
who rounds out the top tier of
candidates along with Ms. Jay-
apal and Mr. McDermott.
Under the states top-two
primary system, the two can-
didates from any party who do
best in the Aug. 2 primary will
advance to Novembers gen-
eral election.
The two Republican candi-
dates in the field of nine have
raised little money and are un-
likely to make it past the pri-
mary. They didnt participate
in the debate.
Collectively, the top three
candidates in the race all sup-
port eliminating private pris-
ons, overhauling the campaign
finance system, making tuition
free at community colleges,
May 2016 poll
COASTAL REGION
Clinton
Inland Valley region Sanders
14%
INLAND VALLEY REGION
Clinton
Sanders
Southern SAN FRANCISCO BAY AREA
California Clinton
Fresno
21% Sanders
LOS ANGELES COUNTY
Bakerseld
Clinton
Sanders
Anaheim SOUTHERN CALIFORNIA
San Clinton
Diego
Sanders
THE WALL STREET JOURNAL.
cerned that many of Mr.
Trumps positionsincluding
proposals to ban Muslims from
entering the U.S., force Mexico
to pay for a wall along the bor-
der and deport all illegal immi-
grantswould alienate groups
of voters. Mr. Ryan has said he
couldnt condone some of Mr.
Trumps comments, and the
two have split over trade, im-
migration policy and the size
of federal safety-net programs.
But House Republicans said
Mr. Ryan thought their agenda
has a better shot of getting en-
acted with Mr. Trump as presi-
dent.
Theyll never see eye to eye
on free trade; they probably
wont see eye to eye on the
border either, said Rep. Dun-
can Hunter (R., Calif.), an early
congressional endorser of Mr.
Trump. But Paul Ryans not a
national elected figureDonald
Trump is. I dont see why Don-
ald Trump would move side-
ways or backwards or forwards
to accommodate anyones
agenda.
changing federal sentencing
guidelines, assertively tackling
climate change and erasing
institutional racism in police
departments, college curricula
and other arenas.
Some of their positions go
well beyond what has been ad-
vocated by Mrs. Clinton, a
more centrist Democrat than
Mr. Sanders, who describes
himself as a democratic social-
ist.
While Mrs. Clinton has
balked at Mr. Sanderss push
for a single-payer, govern-
ment-run health-care plan, for
instance, all three candidates
have endorsed it.
Even the demographics of
the candidates run counter to
both a U.S. House that is 99%
heterosexual, 83% white and
80% male and to the Seattle-
area congressional district it-
self, which is 72% white.
The field of competitors at
last weeks debate included
one white gay man, one half-
Cuban gay man, a man and a
woman both born in India, one
African-American man and
one white woman with pink
hair.
Its the beginning of a joke
that people will find funny, or
offensive, or both, Maurice
Dolberry, an education consul-
tant who moderated a candi-
date forum last week on incor-
porating racial equity into
policy, said of the lineup of
candidates.
Ms. Jayapal, who intro-
duced Mr. Sanders at a rally in
the state last summer, may be
most aligned with the wave of
the liberal movement energiz-
ing Democrats in a state
where the Vermont senator
won almost 73% of the vote in
the March caucus.
Even candidates who
backed Mrs. Clinton have paid
deference to Mr. Sanderss in-
fluence on issues already be-
ing debated in Seattle, includ-
ing housing affordability and
income equality.
Percentage white,
non-Hispanic
36%
58%
52%
44 47%
54
56
42
39%
54
40 27%
46
49 41%
THE WALL STREET JOURNAL.
THE WALL STREET JOURNAL. Friday, June 3, 2016 | A5

Trump Keeps Heat on Judge

H H H H H
CAMPAIGN
WIRE
H H H H H
FUNDRAISING
Two More Billionaires
Back Trump PAC
Great America PAC, a super
PAC backing presumptive Repub-
lican presidential nominee Donald
Trump, has notched the backing
of two more billionaires as it
plans a string of fundraisers
ahead of the Republican conven-
tion, a development that could
help the group nudge out the
growing set of other super PACs
that have recently formed to
support Mr. Trump.
governor. The other Mr. Sullivan
defeated Democrat Mark Begich
and is now in his first term in
the Senate.
Alaskans now face the pros-
pect of having a pair of Sens.
Dan Sullivan. A few minutes be-
fore the states filing deadline
Wednesday, the former mayor
submitted paperwork to mount a
primary challenge to GOP Sen.
Lisa Murkowski, according to the
Alaska Dispatch News.
Mr. Sullivan, who told the An-
chorage paper he didnt decide to
run until hours before the filing
deadline, faces a steep climb
against Ms. Murkowski, a two-
term incumbent with $3.4 million
in her campaign war chest, ac-
cording to the latest financial
disclosure report. But six years
ago, Ms. Murkowski lost the
GOP primary to a tea-party can-
didate named Joe Miller. She de-
Charge of a conflict in
case over university
draws criticism from
some legal observers
BY BRENT KENDALL
Donald Trump on Thurs-
day escalated his attacks on
the federal judge presiding
over civil fraud lawsuits
against Trump University,
amid criticism from legal ob-
servers who say the presump-
tive GOP presidential nomi-
nees comments are an unusual
affront on an independent ju-
diciary.

DAN HERRICK/KPA/ZUMA PRESS

The group has scheduled five
fundraisers in the coming weeks
in New York, Texas, Oregon, Ohio
and California, a super PAC offi-
cial said.
Peter Kalikow, a wealthy real-
estate developer who donated
$100,000 to the conservative
group American Crossroads in
2012, is set to host the New
York event. It will be attended by
billionaire Julian Robertson, a for-
mer hedge-fund manager who
donated more than $1 million to
a super PAC backing Jeb Bush
last year and more than $2 mil-
lion to one supporting 2012 GOP
nominee Mitt Romney, the offi-
cial said.
Billionaire Andy Beal, a Dallas-
based banker, is set to attend
the super PACs fundraiser in
Texas, the super PAC official
said. The group expects to raise
between $15 million and $20
million before the convention.
Rebecca Ballhaus
ALASKA SENATE RACE
Bid Brings Possibility
Of Two Sullivans
Alaskas Dan Sullivan this
week launched a surprise U.S.
Senate campaign in Anchorage,
just as Alaska Sen. Dan Sullivan
was on a foreign trip to Asia.
The two Messrs. Sullivan
caused great confusion in 2014
when both appeared on the
states primary ballot. One Mr.
Sullivan, then the mayor of An-
chorage, went on to lose a gen-
eral election bid for lieutenant
feated Mr. Miller in the general
election as a write-in candidate.
Mr. Sullivan is expected to
challenge Ms. Murkowski from
the right. He is more conserva-
tive, especially on social issues,
than Ms. Murkowski. He said his
campaign signs will read Dan
Sullivan squared, Alaska Dis-
patch News reporter Nat Herz
said on Twitter. The states pri-
mary is in August.
Reid J. Epstein
MICHIGAN
Gov. Snyder Declines
To Endorse Trump
Michigans Republican gover-
nor, Rick Snyder, has decided he
wont endorse Donald Trump for
president, saying he would prefer
instead to focus on state issues.
In an interview with the De-
troit News editorial board
Wednesday, Mr. Snyder said he
would sit out the race, as he did
in the states March 8 primary,
which Mr. Trump won with 36%
of the GOP vote. Ive stayed out
of the whole thing, and Im going
to continue to, the paper quoted
him as saying. Ive got impor-
tant things I want to work on in
Michigan.
Mr. Snyders silence is the lat-
est sign of the challenges facing
Mr. Trump as he seeks to capi-
talize on his popularity with
white, working-class voters in
Rust Belt states. Michigan hasnt
voted for the Republican nomi-
nee since 1988.
WSJ Roundup
In an interview, Mr. Trump
said U.S. District Judge Gon-
zalo Curiel had an absolute
conflict in presiding over the
litigation given that he was of
Mexican heritage and a mem-
ber of a Latino lawyers asso-
ciation. Mr. Trump said the
background of the judge, who
was born in Indiana to Mexi-
can immigrants, was relevant
because of his campaign
stance against illegal immigra-
tion and his pledge to seal the
southern U.S. border. Im
building a wall. Its an inherent
conflict of interest, Mr.
Trump said.
The New York businessman
also alleged the judge was a
former colleague and friend of
one of the Trump University
plaintiffs lawyers. The judge
and the lawyer once worked
together as federal prosecu-
tors, but the lawyer, Jason
Forge, said he had never seen
the judge socially.
Neither Judge Curiels eth-
nicity nor the fact that we
crossed paths as prosecutors
in the U.S. Attorneys Office
well over a decade ago is to
blame for Mr. Trumps ac-
tions, said Mr. Forge, who is
with the law firm Robbins
Geller Rudman & Dowd LLP.
An assistant in Judge
Curiels chambers said he
wasnt commenting on the
matter. An aide to the judge
has previously said the judicial
code of conduct prevents him
from responding to Mr. Trump.
Donald Trump speaks to a reporter at the launch of his eponymous school, in 2005 in New York.
Judge Curiel is an Obama nom-
inee who has served on the
district court in San Diego
since the Senate confirmed
him in 2012.
For judges, being criticized
for rulings comes with the ter-
ritory, but court watchers say
it is far different when the
critic could win the nations
highest office, is involved in a
pending case and references
the judge's ethnicity.
University of Pennsylvania
law professor Stephen Burbank
said it was absolute non-
sense that the judge shouldnt
be able to preside over the
case because of his ethnicity.
Ronald Rotunda, a professor
at Chapman University School
of Law in Orange, Calif., noted
that whatever Mr. Trumps
grievances, his lawyers havent
filed for the case to be reas-
signed. If Mr. Trump has a
problem with the judge, thats
the legitimate way to register
a complaint, he said.
Mr. Trump in the interview
said that he may do so. Other
judges, he said, would have
thrown out the plaintiffs case
against the school, he said.
The GOP candidates com-
ments follow a San Diego
speech last week in which he
called the judge a hater of
Donald Trump and a total
disgrace, while referencing
the judges ethnicity.
Mr. Trump also criticized
the judge Thursday on Twitter,
saying he would win the litiga-
tion and reopen the now-de-
funct Trump University when
the cases were done.
While Mr. Trumps com-
ments prompted criticism, he
said he believed the bigger
threat is to be treated unfairly
by the courts. Its called free-
dom of speech, he said.
Legal experts agreed that
defendants have the First
Amendment freedom to ex-
press opinions about a judge
hearing their caseas long as
they arent disruptive in the
courtroom.
Judge Curiel is presiding
over a pair of cases in which
the plaintiffs alleged Trump
University duped them into
paying tens of thousands of
dollars on the belief they
would be trained to learn Mr.
Trumps real-estate strate-
gies. Mr. Trump denies the al-
legations, saying the students
got their moneys worth, with
many offering positive evalua-
tions of the program.
The judge has issued pre-
trial rulings against Mr. Trump
and has unsealed documents
offering a detailed look at the
businesss operations and
scathing assessments from
some former workers.
During the 1996 presidential
campaign, both President Bill
Clinton and Sen. Bob Dole, the
Republican nominee, criticized
a Clinton-appointed New York
federal judge, Harold Baer,
who excluded prosecutors evi-
dence in a high-profile narcot-
ics case. In response, four
judges on the Second U.S. Cir-
cuit Court of Appeals issued a
statement in defense of Judge
Baer, saying the officials re-
marks had gone too far and
could intimidate other judges.
Judge Baer later reversed
his ruling, though he said it
wasnt because of political
pressure. He eventually took
himself off the case.
Jacob Gershman
contributed to this article.
A6 | Friday, June 3, 2016 THE WALL STREET JOURNAL.

Refugee Plotted Attack, Germany Says
Three Syrians arrested morning raid by heavily armed
police commandos.
for allegedly planning That suspect, identified as
killings in Dsseldorf; Hamza C., joined Islamic State
in early 2014 along with a man
one came as migrant named Saleh A., according to
the prosecutors statement on
Germany arrested three the arrests.
suspected Islamic State mem- The German prosecutors
bers from Syria on suspicion allegations indicate that Is-
of preparing an attack on Ds- lamic State has been plotting
seldorf, the countrys top the attack for years. Shortly
prosecutor said Thursday, de- after the two men joined the
organization, its leadership or-
By Anton Troianovski dered them to carry out an at-
in Berlin tack in the bustling central pe-
and Zeke Turner destrian zone of Dsseldorf,
in Bliesdorf, Germany the prosecutors office said.
The two plotted to attack
tailing allegations that could one of the main streets with
further inflame the German two suicide bombings and to
and European debate over mi- kill as many passersby as pos-
gration and security. sible with guns and further ex-
At least one of the three plosives, the prosecutor said.
suspects came to Germany as The plot ran aground after
a refugee, officials said. He Saleh A. turned himself in to
was taken into custody at a French authorities on Feb. 1,
small-town migrant shelter according to the prosecutor.
near the Polish border in a Hamza C. and two alleged ac-
WORLD NEWS
complices in western Germany
were arrested Thursday. Pros-
ecutors didnt say why Thurs-
days arrests came more than
four months later.
The arrests could present a
new challenge for German
Chancellor Angela Merkel,
who has staked her chancel-
lorship on a welcoming ap-
proach to refugees even as
critics say that she has ex-
posed her country to security
risks and unwanted cultural
change by allowing hundreds
of thousands of asylum seek-
ers to enter the country.
While she remains rela-
tively popular in the polls
with a 55% approval rating,
an upstart populist party has
reached new heights amid
public discontent with her mi-
grant policy.
German security officials
have warned repeatedly that
the country, the most popu-
lous in the European Union, is
in the crosshairs of interna-
tional terrorists even though dont think it is very likely. tough measures to limit the
it has so far been spared a Mr. Maassen and other Ger- flow.
large-scale attack as seen in man officials have since Austria this winter declared
Paris and Brussels in recent sounded alarms about the se- a cap on how many asylum
months. curity risks of the migrant seekers it would accept, insti-
Germany is part of the U.S.- flow and have raced to im- tuting stringent new border
led military coalition to defeat prove methods of identifying controls that set off a domino
Islamic State, providing recon- the migrants and keeping effect of similar measures in
naissance jets, airborne refuel- track of them after they ar- the countries down the mi-
ing, and other support. rive. grant path to Greece.
But officials initially played They say that while Islamic Meanwhile, Ms. Merkel bro-
down the risk of terrorists State has more reliable means kered a deal between the EU
sneaking into the country as of sending terrorists to Eu- and Turkey in which Ankara
part of last years influx of ref- ropefor example, by dis- agreed to work to stop refu-
ugees and migrants. Roughly a patching radicalized EU citi- gees and migrants from cross-
million people from Syria and zenssmuggling in attackers ing to Europe in the first
elsewhere arrived seeking asy- posing as migrants can serve place.
lum last year, at a rate of as the groups purpose by inflam- Thursdays arrests provided
many as 10,000 a day, many of ing anti-refugee and anti-Mus- fresh arguments for critics
them entering the country lim sentiment in Europe. who say Germany hasnt done
without the background In the Nov. 13 Paris attacks enough to mitigate security
checks typical for people ap- that killed 130 people, two of risks stemming from the large
plying for a visa. the attackers used the refugee number of new arrivals.
Its possible that terrorists route from Greece to enter Eu- We must cast aside the na-
are coming among the refu- rope, according to authorities. ive belief that people are only
gees, domestic intelligence Terror fears have chilled at- coming to us with good inten-
chief Hans-Georg Maassen told titudes toward migrants tions, said Gregor Golland, a
a consortium of regional across Europe, helping push conservative lawmaker in the
newspapers last fall, but we EU leaders to take increasingly state parliament in Dsseldorf.

Berlin Parliament Agrees to Call Armenian Massacre a Genocide, Complicating Ties to Turkey
BERLINGermanys parlia-
ment approved a motion calling
the century-old killing of more
than a million Armenians by
Ottoman Turks a genocide, a
move that angered Turkey,
Berlins ally in keeping Europes
migrant crisis in check.
The resolution on Thursday
was welcomed by a group of
Armenians in attendance at
parliament, pictured at left.
The measure had overwhelm-
ing parliamentary support, de-
spite more than a year of un-
successful backstage efforts by
the German government to wa-
ter down a text that has
caused considerable ire in An-
kara.
The Armenians fate is ex-
emplary of the history of mass
destruction, ethnic cleansing,
expulsion and genocide that
has marked the 20th century
MICHAEL SOHN/ASSOCIATED PRESS
sponsibility.
The vote was a setback for
Chancellor Angela Merkels
government, which has been at
pains to avoid riling Turkish
President Recep Tayyip Erdo-
gan, an awkward ally in Ber-
lins efforts to curb the recent
inflow of migrants and refu-
gees to Europe.
Ms. Merkels alliance with
the Turkish leader has dam-
aged her ratings as Mr. Erdo-
gan faces mounting criticism
for his crackdown on domestic
critics and Kurdish separatists.
In reaction to the vote, Tur-
key recalled its ambassador
from Berlin for consultations.
Mr. Erdogan said the resolu-
tion will indeed have serious
repercussions to Germany-Tur-
key relations. He didnt elabo-
rate, saying officials in Ankara
would weigh the measure in

in such a terrible way, the res- detail.

olution says.
It also notes what it calls
Germanys complicit silence in
1915 and 1916, when the kill-
ings were committed, while re-
ferring to the singular nature
of the Holocaust, for which
Germany bears guilt and re-
Ankara has stopped short of
tying the vote to the fate of a
German-brokered deal with the
European Union under which
Turkey agreed to take back mi-
grants who illegally reached
Greece.
Andrea Thomas

Under Putin Ally, Chechnya Islamizes Egypts Sisi Courted

A As Mideast Broker slan Abdullayev, the
deputy mufti, or reli-
gious leader, of Chech-
nya, noted with pleasure that
the level of Islamic obser-
vance here is much higher
than it was in the 1990s,
when the republic was de
MIDDLE EAST CROSSROADS facto independent and a mag-
YAROSLAV TROFIMOV net for jihadists from around
the world.
Its night and day, said
parallels between his moun-
tain fief and Islamic State in
Iraq and Syria, or ISIS.
No single politician or
government agency can guar-
antee today that the Islamic
state which Kadyrov has cre-
ated in Chechnyawill not be
transformed over time into
another ISIS prepared to de-
clare jihad against Russia,
Russian liberal politician Ilya
tion that was followed by his
father, Ahmat, who was
Chechnyas mufti. The elder
Kadyrov, who initially de- Israeli and Palestinian offi- tinians, a person familiar with
clared jihad on the Russians cials have been pushing Egypts the matter said, adding that
in the 1990s but then President Abdel Fattah Al Sisi these steps could include a
switched sides, headed the to assume a lead mediating cessation of settlements.
Moscow-backed administra- role in attempts to restart a Egypt, Jordan, Saudi Arabia
tion in Grozny in 2000, just to fraught peace process ahead of and countries from the Euro-
be assassinated by Islamist a conference in Paris on Friday. pean Union and Asia also are
radicals four years later. all expected to attend the Paris
By Rory Jones in Tel summit. French officials say the
Aviv and Tamer El-

T
GROZNY, RussiaWhen a Mr. Abdullayev, who delivers Yashin wrote in a recent re- hose radicals are much conference will aim to draw up
female visitor tried to enter the weekly sermon at the op- port investigating Chechnya. weaker today, with only Ghobashy in Cairo a list of incentives for the par-
the Chechen Republics parlia- ulent Heart of Chechnya Grozny today isnt quite two militant attacks in ties as part of a possible deal.
ment on a recent day, a mosque. Islam plays the Raqqa or Mosul. There is a Grozny in the past two years. Israeli officials have held France has said if the officials
bearded trooper looked disap- main role here in the Chechen functioning church, and even In part, some Chechens say, discussions with Mr. Sisi about make progress, it would host an-
provingly at her skirt, well Republic. When there was plans to restore the syna- that is because Mr. Kadyrovs reviving an Arab states-led ini- other conference this year that
below the knee, and then war, the mosques were empty gogue destroyed in the war. Islamization drivewhich si- tiative to solve the Israeli-Pal- would include the Israeli and
touched his jackboot with the and people were too preoccu- We are a normal secular multaneously cracked down estinian conflict, people famil- Palestinian leadership, at which
walkie-talkie antenna. pied with their own family republic, said Djambulat Um- on the Sufis traditional foes, iar with the matter said. talks would begin in earnest.
The skirt must be long problems. Now that we have arov, the minister of national the followers of Saudi-style, Palestinian Authority President Despite the involvement of
like that, he growled. We stability, people are flocking policy, external relations and ultra-fundamentalist Islam Mahmoud Abbas, meanwhile, Arab nations in the French ini-
have orders: You cant come to the mosques again. information. But if you fol- has taken the wind out of mil- has attempted to persuade Mr. tiative, Israeli officials favor
in dressed like this. With his authority near- low Kadyrovs path, the path itants sails. Sisi to play a key role in an ini- direct negotiations with the
In theory, absolute in Chechnya, Mr. of creation, the path of re- Thats how Ramzan is tiative put forward by France, Palestinians and the involve-
Chechnya Kadyrov has also become a turning to cultural values, trying to preserve our soci- Palestinian officials said. ment of the their regional
though over- force in Russias national poli- then you are a Muslim and ety, said Kheda Saratova, a Israeli and Palestinian offi- neighbors in a separate initia-
whelmingly tics, in part because of run- you must be an example in human-rights activist who cials said they believe Mr. Sisi
Muslimis
an integral
ning a largely autonomous se-
curity forceseveral veterans
everythingand you should
follow to the maximum the
works with families of Chech-
ens who joined Islamic State.
can act as an honest broker be-
tween the two sides as security
Foreign ministers
part of the of which are now on trial on sacral truths. With traditional Islam, Ram- cooperation between Egypt and will meet in Paris to
secular Russian Federation,
governed by the same laws.
charges of killing Russian op-
position leader Boris Nemtsov
The version of sacral
truths promoted by Mr. Kady-
zan is keeping the people
away from the kind of chaos
Israel is at unprecedented lev-
els and the Egyptian leader has
try to restart Israeli-
In practice, however, this in Moscow in 2015. Critics of rov is rooted in the relatively that we had gone through in indicated he is committed to Palestinian talks.
North Caucasus republic of Mr. Kadyrov already draw moderate Sufi Islamic tradi- the past. establishing a Palestinian state.
1.4 million people, ravaged by The efforts to win over Mr.
two wars of secession, lives Sisi come as foreign ministers tive. Arab states have indicated
under very different rules. from 26 countries, including to Israel that they are positive
Under strongman Ramzan Secretary of State John Kerry, about such an approach, said
Kadyrov, a former rebel who meet in Paris on Friday for the Dore Gold, the director-general
has become a fervent ally of start of Frances initiative to of Israels foreign ministry.
President Vladimir Putin, achieve peace, an approach The French conference is a
Chechnya underwent a strik- that has been repeatedly re- terrible mistake, Mr. Gold
ing Islamization in recent jected by Israels Prime Minis- said in an interview. An Arab
years. Most women on the ter Benjamin Netanyahu. regional initiative supports
streets of Grozny, the capital, Alaa Youssef, Mr. Sisis the idea of direct negotiations
wear the Islamic hijab, a chief spokesman, on Thursday between Israel and the Pales-
dress code until recently en- said the president is eager to tinians. At the same time, it
forced by drive-by paintball take a leading role to re-initi- allows Israel and the Arab
shootings. ate the peace process and give states to explore normaliza-
Though no such rule offi- all kinds of support. tion [of relations].
VALERIY MATYTSIN/TASS/ZUMA PRESS

cially exists, unveiled women But the two sides differ on On Monday, Mr. Netanyahu
are also banned from govern- the nature of the Egyptian said the Arab peace initiative
ment offices. role. Israeli officials hope Mr. includes positive elements that
Alcohol, officially allowed Sisi will push Arab states, in- can help revive constructive ne-
for sale only between 8 a.m. cluding Egypt, Jordan, Saudi gotiations with the Palestinians.
and 10 a.m. since 2009, has Arabia and the other Gulf Palestinian officials say Mr.
become virtually unavailable. states, to agree to normalize Netanyahu is trying to gain
Ostentatious new mosques economic and diplomatic rela- support for a competing initia-
are mushrooming and the tions with Israel while it takes tive to the one put forward by
government sponsors youths positive steps on the ground France to avoid making conces-
who memorize the Quran. A group of girls attending a rally promoting Islamic values last year in central Grozny. toward peace with the Pales- sions in a future peace deal.
THE WALL STREET JOURNAL.
Local Politics Exacerbate
U.S., China Relations
BY IAN TALLEY
AND MARK MAGNIER
The U.S. and China, facing
mounting political pressures at
home, are seeing economic ten-
sions flare to their worst point
in years over currency and
trade practices.
China has pushed the yuan
to a five-year low against the
dollar, reviving charges from
American firms of currency
manipulation to gain a compet-
itive advantage for Chinese
goods. The Obama administra-
tion has fired off a series of
trade complaints and levied du-
ties on several Chinese indus-
tries, from chicken feet to cold-
rolled steel used in appliances
and auto parts.
The friction between the
worlds two largest economies
could worsen as domestic poli-
tics collide with weak growth.
The U.S., seeing heightened
anti-China rhetoric in the presi-
dential election, wants China to
press ahead with promised pol-
icies to open up its markets
and allow greater international
investment.
Chinese leaders, worried
about a deeper economic slow-
down, are trying to keep facto-
World
Watch
SYRIA
Offensive Targets
Terrorist Hotbed
Secretary of Defense Ash
Carter said Islamic State is
hatching plots against Europe,
Turkey and the U.S. from the
Syrian city of Manbij, the focus
of a new offensive by U.S.-
backed Arab and Kurdish fight-
ers.
Mr. Carter also said foreign
fighters bolstering the extremist
groups ranks have been flowing
through the area around the city,
making its retaking an important
objective for the offensive.
Islamic State has previously
planned attacks beyond the
boundaries of its self-declared
caliphate from its home base in
the Syrian city of Raqqa.
The Arab-led force which
were supporting is conducting
that operation, moving toward
Manbij city, he said.
Paul Sonne
INDIA
Court Convicts 24
In Muslim Massacre
An Indian court convicted 24
people of involvement in the
massacre of Muslims during reli-
gious riots in the state of Guja-
rat in 2002, when Prime Minis-
ter Narendra Modi was chief
minister there.
A total of 69 people were
killed at a housing complex in
the city of Ahmedabad, part of
dayslong violence that counts
among the worst in Indias re-
cent history. More than 1,000
people died, most of them Mus-
lims, and the riots have long
dogged Mr. Modis political life.
Some victims relatives and
political opponents accuse Mr.
Modi of intentionally failing to
protect Muslims from Hindu
mobs. Mr. Modi, who has roots
in Hindu nationalism, has always
denied wrongdoing.
Sentencing will be Monday.
Niharika Mandhana
FRANCE
Museums Protect Art
From Flooded Seine
A swelling Seine river sent
authorities scrambling to safe-
guard the citys art as thousands
of people were evacuated from
surrounding towns.
Unusually heavy rainfall
caused the Seine to swell far be-
yond its banks, swamping vil-
lages southeast of Paris. Two
thousand people were evacu-
ated, and an 86-year-old woman
was found dead in her flooded
home in a nearby village.
Officials were bracing for the
worst in Paris, where the water-
line was expected to peak Friday
at twice its normal height. Boat
services were already suspended
and underground rails and roads
along the river had been shut.
The Louvre museum said it
would close Friday, setting in
motion a plan to evacuate works
of art. The Muse dOrsay closed
early Thursday.
Inti Landauro
ries humming and prevent the
kind of market unrest that
gripped global investors over
the past year.
U.S. Treasury and State De-
partment officials fly to Beijing
early next week to try to calm
some of the trade irritants and
address geopolitical tensions,
particularly over the South
China Sea, where their militar-
ies are operating in sometimes
dangerous proximity.
The U.S., which moved on
Wednesday to cut off North Ko-
rea from the banking system,
wants Beijing to help rein in its
increasingly belligerent ally.
U.S. officials also will seek
reassurance from Chinese offi-
cials about moving ahead with
promised reforms, such as re-
structuring state-owned enter-
prises and reducing industrial
overcapacity, and try to ad-
vance talks on an investment
treaty.
Implementing this reform
agendaand resisting the urge
to hang on to an outdated
growth modeloffers the best
formula for China to achieve an
orderly transition and put its
economy on a more sustainable
footing, said Nathan Sheets,
U.S. Treasurys undersecretary
Philippines Tries New Tack to End Insurgencies
BY TREFOR MOSS
DAVAO, PhilippinesPresi-
dent-elect Rodrigo Duterte will
try to end decades-old insur-
gencies by creating a U.S.-style
federation of states to replace
the nations strong central
rule.
The main rebel forces
communists and Islamist
groupsback Mr. Dutertes
plan and say they would bury
their arms if they can manage
their own political and eco-
nomic affairs. But many fear
the Philippine archipelago
needs its strong central rule to
avoid dissolving into fiefdoms
led by local clans.
We are already divided
into islands, dialects, history
and culture, said Sen. Francis
Escudero, one of many law-
makers skeptical of the plan.
On Thursday, Silvestre Bello,
Mr. Dutertes choice as labor
secretary and one of his peace
negotiators, said he would lead
a three-man government panel
who would meet with exiled
communist leaders in Oslo on
June 14-16 to set the agenda
for peace talks aimed at ending
one of Asias longest Marxist
insurgencies.
The rebels have freed sev-
eral kidnapped policemen to
help spur talks. But their op-
position to U.S. military pres-
ence in the Philippines pres-
ents a sticking point.
Washington is preparing to
station American forces in the
Philippines for the first time
in two decades under a recent
defense pact that Mr. Duterte
T. ROWE
Continued from Page One
launched a review of its inter-
nal voting procedures, accord-
ing to a person familiar with
the matter.
There is no guarantee that
the compensation plan will be
completed, and the final form
it could take is still being dis-
cussed, the people added.
We are in the process of
reviewing the opinions and
considering our options, a T.
Rowe spokesman said Thurs-
day.
T. Rowe investors stand to
miss out on roughly $190 mil-
lionabout $4 a share, plus
interest, on some 30 million
Dell shares held across several
of its funds. The payment
package could head off poten-
tially costly lawsuits from dis-
gruntled fund investors and
any potential inquiries from
regulators.
The T. Rowe fund investors
are arguably worse off than Dell
investors who knowingly voted
to accept the $13.75-a-share
deal consideration back in 2013.
Those shareholders were paid
immediately when the deal
closed in October 2013. But be-
cause T. Rowe sued to challenge
the deal price, its fund inves-
tors had to wait more than two
years for payment.
WORLD NEWS
for international affairs.
Chinas Vice Finance Minis-
ter Zhu Guangyao, while ac-
knowledging at a media brief-
ing Thursday major challenges
for Chinas economy, insisted
Beijing would adhere to its re-
form agenda and commitments
made by the Group of 20
against competitive currency
devaluation.
Some analysts think Presi-
dent Xi Jinping, wanting to
consolidate power in the Com-
munist Party ahead of a leader-
ship transition next year, has
paused reform efforts and in-
stead is revving up the old
playbook of credit-fueled
growth and infrastructure
spending. His aim: Ensure eco-
nomic stability and mollify ri-
vals, they say.
An attempt last year by Bei-
jing to allow markets to play a
role in setting its exchange rate
was mismanaged, adding to a
summertime of woe for Chinas
financial markets and sparking
global jitters. The reaction sur-
prised Chinese officials and cre-
ated a headache for reformers.
The Chinese government is
keeping steel mills, coal plants
and a host of manufacturing in-
dustries afloat despite dwin-
President-elect Rodrigo Duterte with members of a communist rebel group in Davao on April 25.
says he will honor.
Fidel Agcaoili, spokesman
for the National Democratic
Front, whose leftist rebel co-
alition includes a Communist
Party that the U.S. deems ter-
rorists, has demanded that the
Philippines withdraw its offer
to host the American military.
Mr. Dutertes goal of decen-
tralizing power would require
a constitutional revamp. Sev-
eral recent Philippine leaders
have tried unsuccessfully to
change the 1987 charter,
forged in the aftermath of the
Marcos dictatorship to bolster
democracy.
But Mr. Duterte, a socialist
who takes office June 30, ar-
The money manager has
blamed its vote in favor of the
deal on a back-office error.
The default stance of T. Rowe
in merger voteslike many
large investorsis to support
management, which in Dells
case recommended in favor of
the deal. So T. Rowe Prices
computerized system spit out
instructions to vote yes that
weren't manually overridden
before the final vote, accord-
ing to court filings.
T. Rowe held Dell shares in
a number of its mutual funds
including the Equity Income
fund and the Science and
Technology fund in 2013. The
Equity Income fund is up
6.27% over three years, com-
pared with an 11.11% return for
its benchmark, the S&P 500,
according to Morningstar Inc.,
while the Science and Tech-
nology fund returned 15.85%
over three years, ahead of a
5.17% benchmark return.
T. Rowe publicly filed a re-
cord of some 2013 fund proxy
votes, including the fateful
Dell ballot, in August of 2014,
as all large investors must do
annually. But T. Rowe said in
court that it didnt become
aware of the voting error until
two months later, when an an-
alyst asked why it had voted
in favor of the deal, according
to court filings.
In February 2013, just a
week after the buyout was an-
Trade Tensions
The Chinese yuan is at a
ve-year low against the dollar...
How many yuan one dollar buys
Scale inverted
$6.0
6.5
7.0
7.5
8.0
July 2005: China drops
strict dollar-only peg
8.5
2005 10
Sources: FactSet (currency); International Monetary Fund (GDP); U.S. Commerce Department (trade)
dling demand and a tumble in
commodity prices that should
have closed many.
The U.S. recently slapped
Chinese cold-rolled steel im-
ports with duties worth 267%,
accusing the country of selling
products below cost.
By supporting excess pro-
duction capacity, the Chinese
government is engaged in eco-
nomic warfare against the
U.S., said John Ferriola, chief
executive of North Carolina
steel giant Nucor Corp. Thou-
sands of hard-working Ameri-
cans have lost their jobs be-
cause of these illegal, unfair
trade practices.
The Chinese economy has
gued in a recent interview that
more autonomy would distrib-
ute economic development
more equitably, ending rebel-
lions that have cost an esti-
mated 200,000 lives since the
1960s. He is particularly con-
cerned for the countrys five
million Muslims, who live
largely in poverty on Minda-
nao, Mr. Dutertes home island
and where Davao is situated.
Nothing short of federal-
ism will bring peace to Minda-
nao, he said in an interview.
The Communist leader Jose
Maria Sison, a former univer-
sity teacher to Mr. Duterte, re-
cently said the election result
raised the prospects for peace.
FROM PAGE ONE
Michael Dell and his partners took Dell Inc. private in 2013.
nounced, T. Rowe joined a
chorus of investors who ar-
gued it was unfair. While T.
Rowe is typically more vocal
than its competitors, mutual
funds rarely speak out publicly
on corporate mergers. Its op-
position lengthened the deals
odds of passage.
Mr. Dell eventually agreed
to raise the price by 10 cents a
share, and shareholders ap-
proved the deal. Soon after, T.
Rowe and a handful of other
disgruntled investors filed for
a so-called court appraisal,
asking a judge to determine
the fair value for Dells stock.
Dell challenged T. Rowes
standing to sue after the vot-
ing snafu was uncovered. T.
Rowe argued in court that it
had never taken deliberate,
affirmative action to vote in
Friday, June 3, 2016 | A7
American factories moved ... while Chinese exports to the
production to cheaper sites... U.S. steadily increased.
U.S. manufacturing value added U.S. trade decit with China
As a percentage of GDP As a percentage of GDP
16% 2.5%
2001: China joins
15 2.0 World Trade Organization
14 1.5
13 1.0
12 0.5
11 0
2000 10 2000 10
THE WALL STREET JOURNAL.
decelerated after decades of share of the economy. The U.S.
double-digit expansion. Growth trade deficit with China has
is clocking in at 6.7%, its slow- swollen to $365 billion.
est pace since the global finan- China says it also faces ac-
cial crisis amid rising debt, cess problems in the U.S. Its
growing labor unrest and fac- firms complain of a compli-
tory output well above demand. cated web of U.S. state and fed-
China acknowledges it has eral laws and rules that are
an excess-capacity problem. not transparent enough and
But we have to prevent mas- of restrictions on Chinese in-
sive unemployment, Premier vestment in areas deemed stra-
Li Keqiang said in March. tegic, said Zhang Xiaoqiang, ex-
U.S. firms and voters are ecutive vice president of the
growing increasingly frustrated China Center for International
despite Chinas promises to Economic Exchanges.
open up the country. Cheaper Chinese officials also are
wages and costs pulled produc- eyeing the U.S. political scene
tion out of the U.S., Chinese im- warily, concerned about making
ports surged and American commitments the next adminis-
manufacturing declined as a tration could backtrack on.
tonomy. The movement split
in two in the 1990s following a
controversial peace deal. The
breakaway faction signed its
own peace deal with departing
President Benigno Aquino III
in 2014. But the autonomous
Muslim region Mr. Aquino
promised has yet to be estab-
lished.
A separate group, Abu
Sayyaf, a kidnap-for-ransom
group that has sworn alle-
giance to Islamic State, lies
outside the peace process. Mr.
Duterte has threatened to
wipe out its estimated 400
members in their jungle bases
KEITH BACONGCO/REUTERS
on the islands of Jolo and
Basilan unless it hands over all
hostages.
As part of his overture, Mr.
Duterte has outlined plans for
a cease-fire with communist
guerrillas, floated a possible
amnesty for jailed insurgents
and chosen Communist Party-
The incoming Philippine backed nominees for two cabi-
leader has invited Mr. Sison to net posts.
return from his Netherlands Despite areas of agreement,
exile for peace talks. ideological differences be-
The countrys two main Is- tween Mr. Duterte and the
lamic rebel groups were united communists over the U.S. mili-
in their support for Mr. Du- tary presence and other issues
tertes approach to quell their put a lasting peace deal at
long-held grievances, said risk.
Abul Khayr Alonto, who is Steven Rood, the Philippine
chairman of one of them, the country representative of the
Moro National Liberation Asia Foundation think tank,
Front. said the communists eco-
Its great news, said Mr. nomic beliefs clash with Mr.
Alonto in an interview. Home Dutertes more orthodox posi-
rule or self-rule is what our tions. The communists arent
grandfathers were promised. going to lay down their arms
Islamic rebel forces in the anytime soon, Mr. Rood said.
Philippines have struggled Cris Larano
since the 1960s for greater au- contributed to this article.
tions were effectively vacated.
The firm did not override the
default for election when
the vote was later held, ac-
cording to court filings.
Asset managers in general,
particularly active managers,
MATTHEW BUSCH/BLOOMBERG NEWS
typically take a hands-on ap-
proach to these shareholder
votes, said Todd Rosenbluth,
director of exchange-traded-
fund and mutual-fund research
at S&P Global Market Intelli-
gence. Voting mistakes like
this are few and far between.
One of the biggest benefi-
ciaries of this weeks court
ruling was silent as the debate
favor of the merger. And docu- over the buyout raged. Hedge
ments produced during the fund Magnetar Capital LLC
trial showed that Dells advis- stands to pocket about $25
ers had marked T. Rowe down million in profits.
in the against camp as they Most of the investors who
tallied votes in the lead-up to voiced opposition to the buy-
a hotly contested meeting. out either voted to accept the
T. Rowes mistake is partly deal price or sold their shares
attributable to the complexi- before voting. They include
ties of both the way share- billionaire activist Carl Icahn,
holder votes are cast and the who led a charge for an alter-
twists and turns of the Dell native buyout plan, and his
deal itself. Ahead of the first partner Southeastern Asset
scheduled vote, in July 2013, Management Inc., a longtime
T. Rowe governance chief Dell holder. Mr. Icahn said he
Donna Anderson manually opted not to sue, a decision
overrode the default for that cost him as much as $1
vote, and T. Rowes votes were billion, because he had better
logged as against the transac- uses for his cash. Around the
tion, according to court fil- same time, Mr. Icahn took a
ings. stake in Apple Inc., a trade the
But when the deal was re- outspoken investor said ulti-
negotiated, the vote was post- mately delivered around $2
poned, and T. Rowes instruc- billion in profits.
A8 | Friday, June 3, 2016 THE WALL STREET JOURNAL.

FROM PAGE ONE

IRAQ knew how to fight.

He returned to Iraq after the
2003 invasion and won a seat in
parliament two years later. Over
Continued from Page One the next five years, Mr. Ibrahimi
the north. organized, trained and equipped
These fighters, interviewed a network of militias the U.S.
over nearly two years across called Special Groups that led
the battlefield, say the white- the anti-American insurgency,
haired 63-year-old is both hum- the U.S. and former Iraqi associ-
ble and fearless. Through the ates said.
hardships of war, Mr. Ibrahimi, He helped smuggle in ammu-
who wears the same earth- nition and weapons from Iran to
toned shirts and khakis on the employ in these attacks, said
front lines and in the halls of Iraqi and U.S. officials, including
government, has prayed, eaten a special kind of explosive
and even cried with them on known as EFPsexplosively
the battlefield. Most Iraqis formed penetrators. The projec-
know him simply as al-Mo- tiles became a main killer of U.S.
AHMAD AL-RUBAYE/AGENCE FRANCE-PRESSE/GETTY IMAGES

handesthe engineer in Ara- troops.

bic, after his original trade. In this time, American offi-
We are all sons of Mo- cials planned twice to detain Mr.
handes, called out militia Ibrahimi in Iraq but failed to
fighter Maytham al-Khuzai, be- catch him, according to current
fore heading to battle at Beiji, and former U.S. officials.
the oil refinery town that Iraqi We were after him, said Mr.
army and militia forces re- Khalilzad, the former ambassa-
claimed from Islamic State late dor, who tried to have Mr. Ibra-
last year. himi arrested during his
The rise of the commander 2005-07 tenure in Iraq.
and the PMF reflects the new Mr. Ibrahimi disappeared
realities the U.S. government from parliament duty as the U.S.
faces in Iraq, after withdrawing threats mounted, according to
tens of thousands of troops his associates at the time. In
more than four years ago. Ira- PMF militia fighters and other troops advanced on Fallujah on May 23 at the launch of the fight to retake the city from Islamic State. 2007, a Kuwaiti court convicted
nian proxies that once posed The PMFs de facto commander, Jamal Jaafar Ibrahimi, shown below in an image from a video, has been listed as a terrorist by the U.S. him for involvement in the Ku-
the biggest danger to American wait bombings and sentenced
troops have become, as the Basra, Mr. Ibrahimi got an engi- him to death in absentia.
countrys strongest combat neering degree, served military He fled to Iran, where U.S. of-
force, inadvertent partners in We are all duty and joined the Islamic ficials believe he spent the next
the fight against Islamic State. Dawa party in opposition to two years. Iraqi officials said he
Mr. Ibrahimi doesnt hide sons of Saddam Hussein. Along with made brief visits to Iraq after
that he believes in the Iranian many others in the party, he fled that.
model of Shiite theocracy, said Mohandes. Iraq in 1979, the year of Irans Is-
Mishaan Jbouri, a Sunni law- lamic Revolution, which Mr.
maker who counts Mr. Ibrahimi Hussein feared Iraqi Shiites Organizing recruits
as a personal friend. He says MAYTHAM AL-KHUZAI, mili- were trying to spread at home. Only after Islamic State be-
he represents Ali Khamenei, tia fighter, using Mr. Ibrahimis Mr. Ibrahimi was fixated on gan to seize land in Iraq in 2014
Irans supreme leader. nom de guerre before heading that goalestablishing a Shiite did Mr. Ibrahimi publicly resur-
to the Islamic state in Iraq, said Dawa face in Iraq.
battle for Beiji last year party member Mowaffak al- After the militants took Mo-
Power broker Rubaie, who became a national- sul, Iraqs top religious leader,
POPULAR MOBILIZATION FORCES MEDIA DIRECTORATE

Critics of the Obama admin- security adviser after the 2003 Grand Ayatollah Ali al-Sistani,
istration say its aversion to U.S.-led invasion toppled Mr. called on all able men to join the
deep military engagement in Mr. Ibrahimi Hussein. fight against Islamic State.
the Middle East allowed Iran to Right at the start, Mr. Then-Prime Minister Nouri al-
step in and rise to new promi- is a bloody Rubaie said, he was electrified Maliki, who had fought along-
nence. by the concept of the Islamic side Mr. Ibrahimi in the Iran-
Mr. Ibrahimis transforma- bastard. Revolution. Iraq war, put him in charge of
tion, in particular, from exile In Iran, Mr. Ibrahimi began organizing Shiite recruits.
guerrilla fighter in Iran to military training with the coun- In Iraq, as the force racked up
power broker in Iraq shows A Western official in Bagh- trys Islamic Revolutionary battlefield successes, Mr. Ibra-
how Tehran has filled security dad, where Mr. Ibrahimi keeps Guard Corps. and a group it was himi became a cult figure. Music
vacuums across the region with a residence in the fortified forming, the Badr Brigadesthe videos were dedicated to honor-
its ideologically driven paramil- Green Zone military precursor to todays ing his leadership and tales of
itary fighters. In war-ravaged Badr Organizationto fight on heroism circulated. A longtime
Syria, as in Iraq, Iran sent Irans side in the eight-year Iran- Iraqi exile in Europe, watching
proxy militias, organized local Mr. Ibrahimi keeps a residence U.S.-backed army also credit Mr. out airstrikes in support of the Iraq war, according to Dawa YouTube videos on his phone of
forces and eventually dis- in the fortified Green Zone not Ibrahimi with de facto control of PMF, fearing it could acciden- party members. Mr. Ibrahimi, called him Iraqs
patched its own troops to fight far from the U.S. Embassy, other forces, including army and tally strike the militiamen, and Che Guevara.
in support of President Bashar called him a bloody bastard. police, on parts of the battlefield doesnt coordinate with the The U.S., however, grew con-
al-Assad. Iran has also aided Col. Steve Warren, a spokes- where the militias lead the fight. force but with the government Bomb attack cerned about the size and influ-
and helped train Houthi rebels man for the U.S.-led coalition, He signs off on things, gets of Iraq. U.S. officials are pressing In 1983, six bomb attacks ence of the PMF. Baghdad ceded
in Yemen. said: Hes a designated terror- cash, gets the cars, said Moeen Prime Minister Abadi to bring ripped through Kuwait, includ- to U.S. pressure to sideline the
The PMF is central to ist. Thats how we think about al-Khadhimi, a senior member of the force under formal army ing at the American and French militias from major operations
whether Irans influence contin- him. But hes there, so hes got the Badr Organization, the larg- command and sideline the Iran- embassies and Kuwaits airport. against Islamic State, including
ues to expand in Iraq, and also to be accounted for. est faction in the PMF, which in- backed militias. Iran had ordered attacks in Gulf offensives last year that re-
whether Iraq emerges from its Mr. Ibrahimis background is cludes some 50 groups. The U.S. avoids dealing with countries like Kuwait for back- claimed the cities of Tikrit and
fight against Islamic State, also obscure; some Iraqi officials said Despite his history of attacks Mr. Ibrahimi directly while man- ing Iraq in the war, according to Ramadi.
known as ISIS, in one piece, the name Jamal Jaafar Ibrahimi, on American targets, U.S. and aging his pervasive influence. Ali Jabr Hassoun, a Dawa party Mr. Ibrahimi grew defiant.
Iraqi and U.S. officials said. which he uses in Iraq, isnt even Iraqi officials said they dont Last summer, as the U.S. pre- member who met Mr. Ibrahimi One video from October shows
Iraqs U.S.-backed prime minis- his full birth name. think Mr. Ibrahimi intends to pared to send Baghdad its first in Iran around this time. him vowing to a crowd of fight-
ter, Haider al-Abadi, who nomi- Officially, he is deputy chief turn the fighters he commands batch of F-16 fighter jets to al- He was chosen to lead this ers to stop America and push
nally oversees the force, has of the PMF. But to its fighters he Balad air base, a group of Shiite operation, Mr. Hassoun said. the U.S. out of Iraq.
struggled with U.S. demands to is their singular leader, arrang- militia fighters living on the The U.S. Treasurys 2009 ter- Prime Minister Abadi in Feb-
keep Irans power in the coun- ing logistics and military plans
Mr. Ibrahimi doesnt base refused to leave. Mr. Ibra- rorist designation of Mr. Ibra- ruary appointed a second dep-
try in check. for much of the force. He is also hide that he believes himi negotiated their departure himi cites his involvement in the uty to the paramilitary force to
Iraqs Iran-backed militias the right-hand man in Iraq of and handed the base over to U.S. bombings, as well as a later at- dilute Mr. Ibrahimis power and
are the infrastructure of future Iranian Maj. Gen. Qasem Solei-
in the Iranian model contractors. tempt to assassinate Kuwaits decreed the force should report
civil wars, said Zalmay Khal- mani, senior militia leaders and of Shiite theocracy. Months later, in Tikrit, the ruler. to the defense ministry. The
ilzad, a former U.S. ambassador officials said. United Nations had delivered The Dawa party distanced it- moves have had little effect.
to Baghdad. Mr. Soleimani is head of four U.S.-funded generators for self from the bombings, which Mr. Ibrahimi has since ap-
Strategically, Mr. Khalilzad Irans elite Qods Force of over- against the more than 5,000 water-treatment plants, part of were some of the first large- peared in photos at meetings
said, they remain a basis for seas soldiers and spies that has American forces leading an anti- reconstruction efforts after scale suicide bombings in the with the prime minister and de-
continuing conflict and for con- long backed Iraqi militias. The Islamic State bombing campaign pushing out Islamic State. The Middle East. Mustafa Badred- fense officials, his beige guerrilla
ditions that lead to the rise of Iranian draws up plans for mili- in Iraq and aiding the army and generators went missing and dine, military commander in the wear contrasting with the oth-
terror, maybe in a different tary operations that Mr. Ibra- Sunni tribal groups. But he has were thought by U.S. and Iraqi Lebanese Shiite group Hezbollah ers dark suits. He has been
name after ISIS. Militia rule in himi carries out in Iraq, and ap- helped refuel an antagonism for officials to be stolen by militia who was killed in Syria in May, overseeing militia operations
Iraq, he added, could lead to fu- proves arms and ammunition America that could still put U.S. fighters manning the city. After was also accused in the Kuwait against Islamic State he says
ture conflict inside the Shiite deliveries from Iran to PMF fac- forces in harms way, the offi- interventions by the local gover- bombings, among other terror aim to eventually retake Mosul,
community, between the Shiites tions, according to the militia cials said. nor, U.N. officials and others, Mr. attacks. the Sunni-majority militant
and other groups within Iraq, leaders and Iraqi officials. The Across Iraqs desert battle- Ibrahimi managed to get the Mr. Ibrahimi then left Dawa stronghold. For the past week
and beyond. two have been seen sitting to- fields, Mr. Ibrahimi coined a generators back. to work full time with the Badr and a half, he has appeared in
Mr. Ibrahimis office declined gether in makeshift command phrase meant to discredit the U.N. officials said they fre- Brigades, his associates at the the Fallujah command center
several requests for an inter- centers, poring over maps of bombing campaign that other quently need approval from Mr. time said. Hossein Kanani-Moq- leading PMF operations around
view. Iraqi territory carried over by militia fighters repeat often: Ibrahimi to get through check- adam, a former Iranian revolu- the city.
Among U.S. and allied offi- Mr. Soleimani from Tehran, The Americans may have the points guarded by factions that tionary guardsman who helped Ghassan Adnan in Baghdad
cials, he isnt popular. A West- these officials said. skies, but we own the land. answer to him. set up the Brigades, said, He and Bill Spindle in Tehran
ern official in Baghdad, where Commanders in the regular, The U.S. said it doesnt carry Born in the southern city of was well trained, motivated and contributed to this article.

TRASH Mostly, though, Mr. Kendall

said he has come to regard Viet-
nam as his second home and is
tired of Hanois worsening trash
work done by you and your
friends, Vietnams state-run
media reported the mayor as
saying.
dislodge it, like flossing teeth,
Mr. Kendall said as he pulled on
a pair of thick, rubber waders
for his recent May foray into a
Continued from Page One problem. If you want positive Not everyone was so im- tunnel that runs under the city
pose for photographs. results, he said, youve got to pressed. The deputy chairman of and into a canal.
Its really strange getting do something positive. the local district council com- If we can get the water flow-
all this attention, said Mr. So one day in early May, plained to state media that by ing again, maybe the system can
Kendall, who moved to Viet- equipped with little more than jumping into the canal, Mr. Ken- heal itself.
nam three years ago to teach gloves and face masks, Mr. Ken- dall had created the impression Looking on, Vu Thi Loan, an
English. All I wanted to do is dall and a few friends waded that his office wasnt taking pol- inspector from Hanois water
just clean up some trash. into a canal in Hanois gritty Cau lution problems seriously. He department, recognized Mr.
Mr. Kendall, from Springfield, Giay district and began clearing couldnt be reached for com- Kendall from the television news
AMES KENDALL

Ohio, isnt sure exactly why he is garbage by hand. They found ment. reports and stopped to watch.
willing to jump into Hanois ca- branches, carpets and masses of When Mr. Kendall, who At age 49, she said she has been
nals and drainage systems. Be- plastic bottles and bags. speaks Vietnamese, confronted a monitoring the citys drains for
sides the sheer yuck factor, Passersby stopped their mo- man burning trash in the street, 25 years.
there are the dangers of cuts tor scooters to watch. They just James Kendall, a schoolteacher, began clearing refuse from Hanoi the man didnt take well to the But Ive never seen anything
from obscured debris or even couldnt believe it, Mr. Kendall waterways in May. A local lake, above, in 2010. foreigners lecturing him and in- this, she said. I wish there
leptospirosis, an infection recalled. They just stood there voked Vietnams national hero. were more people like him.
spread by rats. and stared, jaws open. found Mr. Kendalls Facebook when the office of Hanois chair- I said, Hey, its not OK. Burning The further Mr. Kendall went
One inspiration may have Others took pictures, which page, Keep Hanoi Clean, and man, or mayor, Nguyen Duc this stuff is bad for the environ- into the tunnel, the worse it
been Ohios own history of envi- spread on Facebook and other joined volunteers from his Chung, got in touch with Mr. ment. He was like, Ho Chi Minh seemed to get. It feels like Im
ronmental disasters. Another social media. One man walking neighborhood to clean up their Kendall to arrange a meeting at number one! Ho Chi Minh num- walking through clay. Ugh, he
was the way tons of fish washed by, Nguyen Van Quang, 27, leapt community and plant trees the Mr. Kendalls apartment. He ber one! said. So gross.
up dead along a 130-mile stretch into the canal to help. following weekend. brought a medal bearing the city Mr. Kendall is using his sum- Then he reached a point from
of coast here in Vietnam in I asked myself why Vietnam- He is working on developing insigniaa rare honorand mer break from teaching to help which he was all too happy to
April, which prompted Mr. Ken- ese are throwing trash in the ca- a smartphone app that lets peo- pinned it to Mr. Kendalls blue, build his network, which has return. Whoa, a lot of cock-
dall and many others to wonder nal and leaving it for foreigners ple use GPS and Google Maps to short-sleeved shirt before a gag- over 6,700 Facebook-page mem- roaches there. Im getting
how much economic growth the to clean up, he recalled, so I pinpoint problem areas and de- gle of photographers. bers, and to crawl back into freaked out by all cockroaches,
country can absorb before its jumped in. scribe what kind of work needs On behalf of Hanois leaders, storm drains. he said. Ill go back.
environment starts feeling even Another, software developer to be done. Id like to recognize and praise If I find anything I can try Vu Trong Khanh in Hanoi
more strain. Nguyen Quoc Trinh, 26, said he The biggest surprise came the meaningful and practical giving it a tug and see if I can contributed to this article.
THE WALL STREET JOURNAL.
Clintons Lawyer, Under Oath
The news out
of last weeks
Cheryl Mills
deposition
was that the
Clinton confi-
POTOMAC dante didnt
say much
WATCH
about Hillarys
By Kimberley
email server.
A. Strassel
Which only
goes to show
that Mrs. Clinton has a serious
problemand she knows it.
This is, after all, Cheryl
Mills. For more than 20 years,
she has served as the Clintons
very own Winston Wolf (Har-
vey Keitel in Pulp Fiction)
their fixer, their problem-
solver. From impeachment
right up through Benghazi and
the server, Ms. Mills is the one
constant in the behind-the-
scenes obstruction. The less
she talks, the more alarm bells
ought to ring.
This was the measure to
watch when Ms. Mills arrived
last Friday to sit for an inter-
view with attorneys for Judi-
cial Watch, which has sued the
State Department over missing
federal records.
In early May the oversight
group convinced a federal
judge to order discovery into
the creation and operation of
Mrs. Clintons private server.
Judicial Watch was granted
permission to depose seven
central figures, including Ms.
Mills, who served as Hillarys
aide at the State Department
and later as her private law-
yer.
Mrs. Clinton claims she set
up the home-brew server in an
innocent act aimed at conve-
Are Atheists Afraid of God?
HOUSES OF The question Do they fear that Mr. Taun- Taunton. Flirting with Satur- magazine with an essay called
WORSHIP might seem ton is some Bible-believing day Night Live parody, the No, Astrobiology Has Not
By Eric silly, because
Metaxas atheists claim
not to believe
in God at all.
But claims dont always match
behavior, as the reaction to a
recent book illustrates.
That book is The Faith of
Christopher Hitchens, by
Christian apologist Larry Alex
Taunton, who tells the story of
his remarkable friendship with
Hitchens, the writer and ar-
dent atheist who died in 2011.
The book focuses on two long
road trips during which they
actually studied the Gospel of
John together. (Mr. Taunton
drove while Hitch, who had
been diagnosed with esopha-
geal cancer in 2010, read aloud
and drank Scotch.) But the
idea that, contrary to his blun-
derbuss public attitude toward
Christianity, Hitchens was not
just friendly with Christians
but also open to the idea of
faith, has many atheists apo-
plectic.
Avenging anti-God hordes
have crashed the books Ama-
zon page, fulminating with
one-star reviews that the book
is tripe! and dishonest and tend that it never happened,
morally reprehensible, and
accusing Mr. Taunton of riding
the beloved Hitchs coattails
to make a fast buck. It is
pretty obvious that none of
these Amazon reviewers has
actually read the book. But
why havent they, and why are
they so outraged?
Canadas Housing Lesson for the U.S.
By Brian Lee Crowley
And Sean Speer
W
here homeownership
is concerned, Ameri-
cans have fallen be-
hind their northern neighbors.
In 2011 the rate of homeowner-
ship in Canada, 69%, overtook
that of the U.S., 66%, for the
first time in more than four
decades. Evidence suggests
Canadas rate has held steady,
but the U.S. rate fell to 64% in
2015. An average Canadian
now has about 74% of his
homes value in equity, com-
pared with 50% for an average
American. And the number of
mortgages in arrears is nearly
eight times lower in Canada
than in the U.S.
How did this happen? Incen-
tives matter. The U.S. tax code
allows homeowners to deduct
the interest paid on their mort-
gages, which encourages bor-
rowing and debt. The Canadian
system has no such deduction
but fully exempts capital gains
on ones principal residence,
which rewards the accumula-
tion of equity. Washington
would be wise to take a look at
nience, so it was notable that
Ms. Mills marched into her
deposition accompanied by no
fewer than seven lawyers
three representing Ms. Mills
herself, and two each from the
Justice and State departments.
Two of the government law-
yers made clear that they were
not only representing their
departments but also guarding
Ms. Mills in her capacity as a
former federal employee. This
is President Obamas assist for
Mrs. Clinton.
Hillarys aide is so
evasive that she cant
even clearly vouch
for her own honesty.
The lawyers earned their
pay. The entire 270-page tran-
script of the deposition, which
Judicial Watch released Tues-
day, has an almost eye-glazing
repetition about it.
A persistent Judicial Watch
attorney attempts to ask Ms.
Mills a straightforward ques-
tion. Before she even finishes,
Ms. Millss army of attorneys
falls all over itself to object, to
insist that the query is outside
the scope of the inquiry or
too vague, and to instruct the
witness not to answer.
On the rare occasions that
they do allow Ms. Mills to
open her mouth, it is only af-
ter coaching her on what is a
permissible response. Not
that they need to worry, as
Ms. Mills appears to have
lived on a distant planet the
Svengali whose nefarious
power over their ailing col-
league was sheerest opportun-
ism? And are they afraid that
actually engaging with Mr.
Taunton and his ideas would
put them in the same danger
as the man they so admired?
How can people so vocal
about the importance of evi-
dence and reason behave
like this? Yet there they are,
posting their angry one-star
reviews, liking all other one-
star reviews on the page to try
to discourage book buyers,
and then indignantly clicking
away.
But one must wonder:
Could it be that, in the friend-
ship between the two men,
they detect the possible exis-
tence of something they deny
but secretly fear might be
real? Is God a subject too
scary to seriously consider
with facts and reason?
The idea that Hitchens was
curious about faith and engaged
with it intellectually apparently
would amount to an intolerable
betrayal in the minds of some
atheists, so they simply pre-
despite the clear evidence to
the contrary.
After all, wasnt Hitchenss
friendship with Mr. Taunton
itself evidence that Hitchens
actually valued Mr. Taunton
and his views?
Consider a recent BBC
Newsnight interview with Mr.
whats working in Ottawa.
Virtually every country in
the Western world uses public
policytax incentives, direct fi-
nancial support, government-
backed mortgagesto promote
homeownership. And for good
reason: Owning a home pro-
motes social mobility, and
neighborhoods are the basic
building blocks of strong, safe
and dynamic communities.
Leading thinkers such as
Harvard Universitys Edward
Glaeser have found that home-
ownership is linked to less
crime, better health, greater ed-
ucational attainment, more civic
participation and, perhaps most
crucial, wealth accumulation.
One study, for instance, found
that owning a home is consis-
tently associated with increases
of roughly $9,000-$10,000 in
net wealth per year.
Yet some economists are
critical of using public policy
to encourage homeownership.
They see it as distorting the
market and nudging people
into homes that they cant
afford when savings might be
put to better use elsewhere.
These are legitimate objections.
OPINION
past several decades.
She doesnt know or cant
recall even basic facts or
conversations. I dont recall
having such discussions. I
cant speak to that. I dont
have a recollection of doing
so. I dont know the answer
to that question.
She cant, or wont, make a
direct statement even about
her own honesty. Are there
any reasons why you would
not be able to answer truth-
fully here today? asks the
Judicial Watch attorney. Not
that I know of, Ms. Mills re-
sponds, suggesting that there
may be reasons shes lying, rance, purposeful misdirec-
but that she probably wont
recall them until later.
In the spirit of looking co-
operative, Ms. Mills did on oc-
casion natter away, filling
time with utterly irrelevant
factoids about State Depart-
ment org charts and her inter-
est in Haiti and food security.
In this way, she managed to
spend most of a day evading
and stonewalling every rele-
vant question.
Ms. Mills can barely recall
any conversation with anyone
while at the State Department
about a server, or email, or
anything. She is clueless or
mum on why the server came
to be or who knew about it, or
how it worked.
Notably, the Mills team
spends much of the interview
suggesting she had no real
knowledge of the system
while on the federal payroll.
Why does the timing matter?
Because Ms. Mills began
working as a private lawyer
for Mrs. Clinton after they
smug host, James OBrien, en-
sconced in a gleaming black-
and-purple set with his inter-
viewees on remote video,
treated his Christian guest with
Christopher Hitchenss
fans are incensed by a
book that dares to say
he took faith seriously.
imperious disdain. Failing to
fluster Mr. Taunton by insinuat-
ing that the author was claim-
ing a Hitchens conversion to
Christianitythats not Mr.
Tauntons pointthe host then
turned to atheist activist Law-
rence Krauss, who said that
Hitchens was not Mr. Tauntons
friend at all, but was only in his be taken seriously, they must
company because Hitchens had
been paid to debate him. Un-
mentioned: those two long,
voluntary road trips, and the
fact that Hitchens had even
spent the night at his friends
house. Of course to know this,
one must have read the book.
I have some history with credence to what many of us
Mr. Krauss. In an op-ed in 2014
for this newspaper called Is
Science Increasingly Leading
Us to God? I discussed the
implications of a fine-tuned
universeand stirred up
swirling dust-devils of atheist If You Can Keep It: The Forgot-
outrage. Mr. Krauss attacked ten Promise of American Lib-
the op-ed in the New Yorker erty, out June 14 from Viking.
Its the reason that pro-
homeownership policy must
get the incentives right, and
economists can help craft
such programs to be effective.
The U.S. mortgage-interest
deduction is anything but ef-
fective. Encouraging home-
ownership fueled by debt
rather than equity makes buy-
ing a house a source of insta-
bilitynot the foundation of
the middle-class.
Washington has effectively
turned homes into ATMs, be-
cause, for the everyday Amer-
ican, it is the only form of
borrowing for which the inter-
est expense is deductible. Be-
cause the deduction applies to
as much as $1 million in mort-
gage debt, it skews toward
high earners. It also costs the
government roughly $75 bil-
lion in forgone revenue each
year, according to the con-
gressional Joint Committee on
Taxation.
Canadas approach of elimi-
nating capital-gains taxes on
primary residences is the bet-
ter one. While U.S. tax law
allows for a home sale exclu-
sion up to a fixed amount
left government. Anything
she learned at that point is
therefore protected by attor-
ney-client privilege. Which is
convenient.
Frustrating as this surely
was for Judicial Watch and
the nation, it cant have been
surprising. The Clintons ha-
vent survived all these years
without the support of tal-
ented people, and Ms. Mills
give her creditis unrivaled
when it comes to protecting
her bosses. Her deposition
was something approaching
performance art, a perfectly
crafted mix of polite igno-
both wanted to breathe free air.
tion and clever defense.
Yet the presence of all
those lawyers proves that Ms.
Mills knows she, and her boss,
could have a major problem.
What is Bryan Pagliano, the
former Clinton IT specialist,
telling the FBI under his re-
ported immunity deal? Will it
conflict with the Mills deposi-
tion? (Interestingly, Mr. Pagli-
ano recently announced he
intends to plead the Fifth at
his upcoming Judicial Watch
deposition.) And what does
federal Judge Emmet Sullivan
think when he reads the tran-
script of the Mills runaround?
He ordered this discovery to
get answers, and its eminently
clear that Ms. Mills is deliber-
ately not giving them.
Her performance is all any-
one needs to know about Mrs.
Clintons guilt in the server
scandal. Someone who set up
a home-brew email system for
convenience wouldnt need
people like Cheryl Mills.
Write to kim@wsj.com.
Made the Case for God, dis-
missing the idea of a divinely
ordered universe as sheer non-
sense.
How awkward. None other
than Christopher Hitchens
himself had taken the fine-
tuned-universe argument seri-
ously. In the 2009 documen-
tary Collision, about his
encounters with evangelical
theologian Douglas Wilson,
Hitchens says: At some point,
certainly, we [atheists] are all
asked which is the best argu-
ment you come up against
from the other side. I think
every one of us picks the fine-
tuning one as the most in-
triguing, adding that you
have to spend time thinking
about it, working on it. Its not
. . . trivial.
If atheist activists want to
be willing to engage the facts.
The fact is that Mr. Taunton
has simply said that Hitchens
late in life was not certain of
his atheism. Unable to tolerate
this crack in the atheist facade,
Mr. Tauntons critics reacted
hysterically. The response lent
standing his worth?
suspectthat atheists really
do fear some facts, and, more
than that, fear where those
facts might lead.
Mr. Metaxas is the author of
($250,000 for singles or
$500,000 for couples), Can-
adas exemption isnt capped.
This tax treatment recognizes
that the home provides basic
shelter and a nest egg for the
future.
Most important, the Cana-
dian policy rewards families
for building up the equity in
their homes rather than accu-
mulating debt. The tax benefit
also arrives precisely when it
is most valuable: at the end of
a persons working life when
he downsizes for retirement.
Restoring the conditions
for upward mobility in Amer-
ica ought to be the top focus
of policy makers in Washing-
ton. Homeownership can con-
tribute to social mobility and
a familys long-term financial
security. Reforming federal
support for it to encourage
equity rather than debt, as the
Canadian experience shows,
would be a good start.
Mr. Crowley is the managing
director of the Macdonald-Lau-
rier Institute, a Canada-based
public-policy think tank, where
Mr. Speer is a senior fellow.
Friday, June 3, 2016 | A9
BOOKSHELF | BY Carla T. Main
Friends Without
Benefits
On Friendship
By Alexander Nehamas
(Basic, 293 pages, $26.99)
L
ast June, New Yorkers were held spellbound by the
escape of two convicted killers from the Clinton Cor-
rectional Facility in the northern part of the state.
Richard Matt and David Sweat, like many companions,
shared a goal and had complementary talents. One was a
social manipulator, the other a meticulous planner. They
For three nail-biting weeks, the men evaded capture in
the dense wilderness of upstate New York. The manhunt
ended with Matt dead in a shootout and Sweat separately
shot and captured. The public was fascinated by the mur-
derers longstanding friendship forged in prison, most re-
cently in adjacent cells in an honor blocka special wing
for well-behaved prisoners.
But were the convicts truly friends? Aristotle would have
said no, because of their
wicked ways. The highest
form of friendship, ac-
cording to the philoso-
phers foundational Nico-
machean Ethics, is the
bond formed when people
are mutually drawn to each
others virtue.
Alexander Nehamas, a
philosophy professor at
Princeton, would likely offer
a qualified thumbs up to the
question of Sweat and
Matts friendship. In On
Friendship he takes a
broader view than Aristotle
of this centraland arguably
most importanthuman rela-
tionship. The book looks at litera-
ture, art and drama, as well as Aristotle
and more modern philosophers, to make the
thought-provoking and thoroughly modern argument that
friendship is a value apart from moral virtue.
Most philosophy books are densely written, but Mr. Ne-
hemass prose is a pleasure. He wisely uses examples from
popular culture (Donnie Brasco), visual arts (Titians
Self-Portrait With Friends), literature (Flauberts Bou-
vard et Pcuchet) and theater (he delves deeply into Yas-
mina Rezas play Art). He also helpfully examines classic
examples of friendship, such as Achilles and Patroclus, Da-
vid and Jonathan, and Phintias and Damon. All of these dis-
cussions make what could be an abstract subject accessible
to a lay reader, and the book is an excellent meditation on a
central human experience.
In pressing his points, though, Mr. Nehemas sometimes
finds himself on less than solid ground. For example, he
compares friendship to a metaphor; just as a literary meta-
phor suffers if we attempt to describe it in words, we can
never adequately express how we feel about our friends be-
cause our experience of them is continuous. He calls this the
and so on aspect of friendship and argues that even Shake-
speares poetry has grown trite and fails to explain feelings
about friendship fully.
For the author, friendship can exist outside
morality. He rejects Aristotles position that
the bond is reserved for those of high character.
But is this true? Many of us can surely articulate why we
love our friends. Ironically, even as the author insists that
one cannot adequately describe what one loves about a
friend, he paints a most endearing portrait of his friend
Tom. Mr. Nehamas describes in detail how Tom cheerfully
came to the authors rescue one morning and changed a tire
while barefoot and wearing pajamas, seemingly oblivious to
the roadside ruckus. The author, not mechanically inclined,
could only look on in wonder. Who wouldnt love Tom after
reading that story? And who would come away not under-
The author elegantly argues that friendship is a question
of closeness and positive motive toward the other person.
Genuine friendship, he writes, depends more on our inten-
tions, feelings, and attitudes than on the results of our be-
havior. For Mr. Nehamas, friendship can exist outside mo-
rality. He points to the film Thelma & Louise, about two
close female friends on a crime spree, as an example. He re-
jects Aristotles position that friendship is reserved for those
of high character. Indeed, Mr. Nehamas proposes that we can
certainly experience friendship where there is immorality be-
cause moral values are only one aspect of human life.
Equally important are values such as love, friendship, indi-
viduality and beauty. He goes so far as to say that immoral-
ity may sometimes be part and parcel of a good friendship.
Mr. Nehamas is able to make the case because he distin-
guishes friendship from justice. The latter requires aware-
ness, usually through thought. He believes that our friend-
ships permeate our personality, enabling us to act in a
particular way without a second thought so that we may
do what is needed for a particular friend. In this way, he
writes, friendship is more like courage, generosity, or
modesty than it is like justice. We help our friends be-
cause they are friends, not for any other reason, he says. So
the authors friend Tom changed the tire not because it was
the fair or just thing to do but because he was Alexander
Nehamass friend.
Of course, as the saying goes, we are the company we
keep. In the case of the escaped convicts, the final result of
their friendship was death for one and injury and solitary
confinement for the other. Using the authors theory, they
ceased to be friends when their motives toward each other
soured or, more specifically, when Sweat, younger and more
fit, abandoned Matt to fend for himself.
Still, it is fair to ask if friendship can exist where no trace
of moral virtue or instincts informed by rules of justice re-
main. The law, after all, has a special name for such friend-
ships: conspiracy.
Ms. Main is a writer living in Jersey City, N.J., and a con-
tributor to the Manhattan Institutes City Journal.
Coming in BOOKS this weekend
Remember Iridium? Halsey in the Pacific The glorious
business suit Chinas gift to the world The Czech
Locomotive Internet nostalgia Josephine Tey &
Alan Furst Alistair Horne on a world at war & more
A10 | Friday, June 3, 2016 THE WALL STREET JOURNAL.

OPINION
REVIEW & OUTLOOK LETTERS TO THE EDITOR

A Political Assault on Paydays A Deficit-Inattention Disorder May Be Fatal

T
he Obama Administration has justified nificant and more sensible limits on payday Regarding George Melloans Inat- President Abe Lincoln said about the
its regulatory assaults on for-profit edu- lending: In Indiana rollovers are banned and a tention-to-the-Deficit Disorder (op- Civil War debt: Men can readily per-
ed, May 27): Is the U.S. really the ceive that they cannot be much op-
cation and coal mining with this nu- loan may not exceed 20% of a borrowers gross
richest country in the world? Not if pressed by a debt which they owe to
anced legal reasoning: We monthly income. Illinois re- you think debt is something that needs themselves.
dont like you. Now the Con- Obamas regulators quires a repayment plan with- repaying over time. And that should FRANCIS X. CAVANAUGH
sumer Financial Protection
Bureau is looking to wipe out
target another industry out fees for a customer who
cant close out in 35 days.
bring pause to progressives who think Washington
Bernie Sanders or Hillary Clinton Mr. Cavanaugh was the founding
a financial service that mil- for extinction. Each state stipulates a maxi- would make an excellent president. chief executive of the Federal Retire-
lions of Americans need mum loan amount; most are They both want to add to debt. Mr. ment Thrift Investment Board
thanks to the lousy economy under $500. These policies Sanders wants to double it. Mrs. Clin- 1986-1993.
of the Obama years. seem to work: A mere 1.5% of complaints to the ton doesnt see additional debt stand-
On Thursday the CFPB rolled out 1,300 pages CFPB involve payday lending, and the number ing in the way of more free stuff, like Mr. Melloan suggests that the only
of rules for Americas 20,000 payday shops, is falling. college. Mr. Melloan paints a picture of real answer to out-of-control growth
a coming disaster if we continue defi- of our fiscal deficit is the reform of en-
which lend small amounts (on average $355) So why does the CFPB want to nationalize
cit spending through this century. He titlements. History and the current
with short repayment periods. The interest rate payday regulation? Pressure from interest cites Jeffrey Mirons estimate that the and past presidential contenders posi-
tends to be $15 per $100, and the credit helps groups, particularly the Center For Responsible present value of future U.S. govern- tions on the problem dont bode well
customers in a pinchsay, to repair a car neces- Lending, which has been lobbying the bureau ment expenses exceeds the present for enacting such reform. In any case,
sary to keep a job. The CFPB would by its own about payday evils since at least 2013. value of future government revenues entitlement reform at some point in
estimate eliminate more than 80% of such loan Emails obtained under the Freedom of Infor- by $117.9 trillion. the future would in all probability be
volume with new underwriting standards, arbi- mation Act by the trade group the Community If you need examples of where ex- too little, too late.
trary borrowing caps, and other measures aimed Financial Services Association show that the tended deficit spending leads, look at A more likely outcome is the U.S.
at making the business unprofitable. CFPB sought regular input from the Center to Greece, Argentina, Puerto Rico and dollar losing its status as the worlds
CFPB officials are swanning around as pro- focus these efforts, to quote one. The Centers Venezuela, where there is fighting in reserve currency, as happened with
tectors of the proletariat, claiming the new President Mike Calhoun passed along a draft re- the streets. They are all minor players, the British pound in the previous cen-
easily written down or off. But the in- tury. A massive eurodollar float would
rules will end a cycle of debt in which borrow- port to a CFPB director, who was invited to solvency of the U.S. would have the ef- then come back home. Inflation would
ers are conned into taking out one exorbitant Feel free to improve it! fect of a nuclear explosion in every start to reduce the dollar and other
loan after another. Yet customersmost of But even moralists gotta make a buck. The country in the world. This economic eased currencies to more of an as-
whom earn between $25,000 and $50,000 Center has an affiliate, the Self-Help Credit devastation wont be felt by those who set-based value linked to undeprecia-
tend to know what theyre doing. One recent Union, with $600 million in assets that would lived beyond their means for genera- ble tangible assets such as gold, land
survey by Harris Interactive suggested that love the CFPBs blessing to compete with pay- tions; they will be quite comfortable in and the like.
more than 90% of customers weighed the day shops on short-term loans. The Centers in- their cemeteries. Their legacy will be a Stock and bond investors wouldnt
risks carefully and agreed the lender clearly fluence spans far: Mark Pearce ran the place for world in ruins. How rich is that? be the only victims of a fiscal-debt set-
explained the terms. A Columbia Law study a decade before jumping to the FDIC to help ROLAND MARTIN tlement hard landing. Ordinary citi-
found borrowers could predict accurately when with Operation Chokepoint, a coordinated gov- Carmel, Calif. zens could be taxed annually on the
basis of their net worth, a system now
theyd be able to pay back the loan. ernment effort to investigate banks that con-
Mr. Melloans major concern with in place in France. This would amount
A minority of borrowers roll over loans and duct legal transactions with payday lenders. the private projection of $117.9 trillion to a clawback of unspent lifetime
end up paying more in fees. Yet a New York Fed- i i i of additional government debt in this earnings and family inheritance, an ac-
eral Reserve Bank analysis in October noted The new rules will be open for comment for century isnt realistic. We have no knowledgment that the gains of previ-
that the evidence these customers were hood- 90 days and will likely take effect early next idea what our economy and the gov- ous generations must be returned to
winked is limited and mixed and too scant to year. Congress can disapprove of rule-makings ernment debt will be even in the next creditors.
justify obliterating the industry. The report dis- with simple majorities in the House and Senate 10 years. SAMUEL BURNS
pensed with other critiques that dont hold up under the Congressional Review Act (see The proper measure of the burden San Jose, Calif.
under scrutiny, including that payday lenders nearby), and payday regulation deserves the of U.S. debt is our net debt to foreign-
target minorities, who are no more likely to take honor. The rules arent required under Dodd- ers, which has been insignificant ac- From then-Sen. Barack Obamas
out a payday loan than a white person in similar Frank or any congressional directive. The cording to the Federal Reserve Boards March 20, 2006, floor speech to the
Flow of Funds data. Our current gov- U.S. Senate: The fact that we are here
circumstances. agency is testing the limits of its authority to
ernment debt is about $19 trillion, today to debate raising Americas debt
Heres what government never considers: the outlaw unfair, deceptive, or abusive acts and which happens to be roughly equal to limit is a sign of leadership failure. It
alternatives. Some 20% of Americans are not practices. Reminder: Businesses that commit the World War II debt of $300 billion, is a sign that the U.S. government
served by banks, according to FDIC data, and fraud are already punishable under law. plus interest. The maturing debt and cant pay its own bills. It is a sign that
three-quarters live paycheck to paycheck. Pay- Google recently announced that its search the interest on it are effectively paid we now depend on ongoing financial
day paternalists would leave many of these indi- engine would ban payday advertisements, prob- off by issuing new Treasury securities. assistance from foreign countries to fi-
viduals no option except to bounce checks, with ably as a favor to the Obama crowd, and the So the controllable budget has been nance our governments reckless fiscal
fees that can top 1,500%; stop paying the electric CFPB rules are supported by progressive elites balanced on average over the past 70 policies. . . . Increasing Americas debt
bill; or visit Fat Tony the loan shark. A separate who have never had to choose between paying years. weakens us domestically and interna-
Fed study found that bankruptcy and returned rent and feeding their children. The workers Mr. Melloans concern that we tionally. Leadership means that the
checks increased in states that had regulated and customers of the payday industry are have borrowed so heavily from future buck stops here. Instead, Washington
generations is baseless. Future gener- is shifting the burden of bad choices
payday lending out of existence. merely collateral damage in another ideological ations will indeed inherit the liability today onto the backs of our children
Speaking of states, some set their own sig- Obama crusade. of the debt, but they will also inherit and grandchildren. America has a debt
the offsetting asset of the Treasury se- problem and a failure of leadership.
curities issued to finance the debt. So Americans deserve better.
Fiduciary Rule Duty in Congress the net impact of the debt on future B.J. KHALIFAH

A
generations is zero. As Republican Grosse Pointe Park, Mich.
relentless grievance on the right is that and Senate. The law has been getting a workout:
House and Senate Republicans do zilch The 114th Congress has disapproved of the
to rein in the Obama Administration, so Clean Power Plan; a Clean Water Act diktat; a
its ironic that almost no one union rule at the National La- Shed No Tears for Aggressive, Bloody Japan
notices when they try. Con- The GOP votes to repeal bor Relations Board; and now
Regarding Eberhard Neutzs May 23 Italy? The least the U.S. could do in re-
gress recently moved to block the fourth Obama Labors fiduciary regulation. letter (Japans War Guilt, Atomic sponse to these provocations was to
a billion-dollar Labor Depart- These efforts hold Democrats Bombs and Pearl Harbor) about the impose sanctions. It took the Pearl
ment rule, which was one of regulation in two years. politically accountable for a U.S. provoking Japan before Pearl Har- Harbor attackthe finishing touch on
the GOPs promises during the rules consequences. bor: What is the two sides of history Japanese intent to perpetually domi-
2014 election campaign. But President Obama version of the 1931 Japanese invasion nate and control all of East Asiato
Last week the Senate voted 56-41 to pre- promises to veto the fiduciary repeal bill, as and occupation of Manchuria, the 1937 bring the U.S. into the hostilities.
vent Labors fiduciary rule, which will run up hes rejected every such measure. Senate Re- Japanese invasion and occupation of By the way, strangled Japan, with
the cost of financial planning by requiring publicans wont be able to muster a two-thirds Eastern China, including the rape of its economy close to collapse [and]
brokers to act in a clients best interest. Mil- super majority to override the President, and Nanking where the Japanese mur- having almost no resources of its own,
lions of low- and middle-earners with IRAs the fiduciary rule will likely hit this summer. dered 250,000 people and raped tens was able to sustain its brutal aggres-
of thousands of Chinese women? What sion and East Asian occupation for four
will be priced out of services except auto- Conservative muscle groups could educate their
about the Japanese invasion and occu- and a half years after its Pearl Harbor
mated advice, and bad robot counsel could networks about thisthough that would inter- pation of the rest of the countries of attack, until Hiroshima and Nagasaki
cost American savers $80 billion in a down- fere with their fund-raising line that Republi- East Asia, and the Japanese 1940 Axis brought an end to war in the Pacific.
turn, according to economists Hal Singer and cans are sellouts to Mr. Obama. alliance with Nazi Germany and fascist My wife is Filipino. The letter writer
Robert Litan. Congress deserves credit for forcing the might enjoy talking to her about what
Three Democratic Senators voted with Re- President to own the fiduciary rule, which car- life was like under the Japanese ver-
publicans to defend your 401(k): Indianas Joe ries all the hallmarks of an Obama overreach, Countrywide Really Wasnt sion of two sides of history. I visited
Donnelly, North Dakotas Heidi Heitkamp and including junk numbers about benefits and the Philippines in 2004. I thought Id
Montanas Jon Tester. Companion legislation evidence that Labor bullied other agencies to
A Subprime Lender at All see the historic churches and other ar-
breezed through the House last month. ram through the plan. And why not? Labor Regarding your editorial The Bank chitectural treasures of the Spanish co-
The measure now goes to President Obamas Secretary Tom Perez may understand better Fraud That Wasnt (May 25): I am lonial era. Almost all were destroyed
counsel to Angelo Mozilo. We appreci- thanks to the Japanese occupation, ex-
desk thanks to the Congressional Review Act, than some Republicans that Mr. Obamas regu- ate the broad perspective provided by cept for the old Spanish dungeon.
which allows the legislature 60 days to block latory onslaught cant be rolled back without your editorial and the more balanced DONALD NAWI
a final rule with simple majorities in the House a GOP President. view of the context and causes of the Scarsdale, N.Y.
financial crisis than politicians and
many in the popular media have
Labor Takings Game largely offered to date. Even College Students Can

U
But there is one comment which we
nions have been losing members and tion of the law shall be construed as authoriz- wish to address, specifically, the pejo-
Understand Socialism Now
political clout as more states (26 so ing agreements requiring membership in a la- rative reference to Countrywide Fi- Regarding Bret Stephenss Whats
far) pass right-to-work laws, and now bor organization as a condition of employment nancial as Mr. Mozilos subprime fac- Socialism, Dad? (Global View, May
tory. In contrast to many other 17): I had a similar discussion with
Big Labor is fighting back in any State or Territory in
lenders, Countrywide was, and re- my grandchildren as did Bret Ste-
with a legal strategy to use Unions say they have which such execution or ap- mained at all times, predominantly an phens with his son regarding the
the Fifth Amendment to take a constitutional right plication is prohibited by originator of prime mortgagesnot meaning of socialism. I pointed out
money from workers whether State or Territorial law. subprime. Indeed, in only one year, to them that they all work very hard
the workers agree or not. to workers money. The Supreme Court has 2004, did subprime mortgages even to achieve the grade of A on their
In federal lawsuits filed in reinforced this principle, rul- represent 10% of Countrywides over- tests. However, the student next to
Idaho and Wisconsin, unions ing in Davenport v. Washing- all originations (a high of just 10.9%), them may not have worked as hard,
are claiming that letting workers opt out of ton Education Association in 2007 that and which were as low as 8.7% and or may have goofed off, or just didnt
union membership and thus not pay dues or unions have no constitutional entitlement to 4.1% in 2006 and 2007. We draw this care, and as a result received a fail-
fees violates the Constitutions Takings the fees of nonmember-employees. And in point because we fully agree with ing grade. But under socialism, the
Clause. The Fifth Amendment says private Sweeney v. Pence in 2014, the Seventh Circuit your observationin literally the very school administration (i.e., the gov-
next sentence following this refer- ernment) could reduce your hard-
property [shall not] be taken for public use, Court of Appeals found that the union is
encethat the facts matter . . . even earned A to a C to lift the failing
without just compensation. According to the fully and adequately compensated by its if they dont in politics. students F to a C. They all im-
unions, forcing them to represent the interests rights as the sole and exclusive member at the At bottom, we share your view that, mediately responded as I hoped they
of non-union members who dont pay dues negotiating table. as national policy makers try to mini- would, saying: Not fair, and Why
amounts to a state taking against them with- All of this makes the union strategy a long mize risk of making the same mis- would I work so hard again? They
out just compensation. shot, but labor is betting on a new era of pro- takes, the facts really should matter. understood immediately the disincen-
In other words, the alleged taking isnt gressive legal activism. A single federal judge DAVID SIEGEL tives and the mediocrity of socialism.
the union grabbing a chunk of a workers pay- could send the case to appellate courts in- Los Angeles STEVEN SHANOK
check without individual consent. It is that creasingly dominated by President Obamas Northbrook, Ill.
right-to-work laws take dues money that appointees. The case could then reach the Su- CORRECTION
union officials say is theirs. This is the Tak- preme Court, which might have a pro-labor Letters intended for publication should
ings Clause turned upside down. progressive majority. be addressed to: The Editor, 1211 Avenue
Data from mid-May show that in of the Americas, New York, NY 10036,
Right-to-work laws have been around since The progressives who dominate todays law California 1.5 million voters have or emailed to wsj.ltrs@wsj.com. Please
the 1940s, and the National Labor Relations Act schools believe the Constitution is whatever newly registered since Jan. 1. The include your city and state. All letters
explicitly allows open-shop arrangements in they say it is, so dont be surprised if this logic June 1 op-ed Clinton Might Not Be are subject to editing, and unpublished
which workers may choose whether to join a begins to prevail in the Obama-appointed the Nominee mischaracterized the letters can be neither acknowledged nor
returned.
union and pay dues. Section 14(b) says no por- courts. voters party affiliation.
THE WALL STREET JOURNAL. Friday, June 3, 2016 | A11

OPINION

Democratic Dissonance on the Economy

By Michael J. Boskin Clinton wants to raise Social Secu-

F
rity benefits, expand government
issures in the Republican health care, fund more college sub-
Party are apparent this sidies, increase taxes (especially on
election season, but there capital), implement even more
is also plenty of disso- financial regulation and expand Mr.
nance among Democrats, Obamas controversial executive or-
particularly on economic policy. ders, each likely to slow economic
And the clashes arent only be- growth. In short, she seems not to
tween the rival campaigns of have gotten her husbands 1996
Hillary Clinton and Bernie Sanders. memo that the era of Big Govern-
Strangely, President Obama is ment is over.
claiming credit for an economy Like any president, Mr. Obama
that is being denounced by these will also leave opportunities for his
would-be successors from his own successor. This long but mediocre
party. Mrs. Clinton and, even more expansion could be accelerated with
AFP/GETTY IMAGES

stridently, Mr. Sanders decry to- the right pro-growth tax, budget
days economy as the mediocre re- and regulatory policies. Top priori-
sult of a rigged systemafter 7 ties should be 1) lower personal
years of Mr. Obamas policies. and globally competitive corpo-
Stranger still, Mrs. Clinton said ratetax rates, combined with
recently that she would put her curtailing deductions and credits;
husband in charge of revitalizing with Republicans on welfare re- (credit due only if Al Gore really since the trough of the Great De- 2) gradually slowing Social Security
the economy, an unsubtle rebuke form, balancing the budget, trade invented the internet), but burst pression in 1933over eight de- growth with price rather than wage
to Mr. Obama, suggesting that liberalization, lower capital-gains just as he left office. cades spanning 13 administrations. indexing of initial benefits for non-
Americans would do better under taxes and financial deregulation. President Obama inherited a Mr. Obama thus far has overseen poor future retirees; 3) a Rivlin-
Clinton 2.0. But then her campaign Presidents, like quarterbacks, deep recession and a financial cri- 1.7% average annual economic Ryan-Wyden premium-support, con-
get more credit or blame for suc- sis that had been building for growth, and the Blue Chip forecast sumer-choice model for Medicare;
cess or failure than they deserve. years, with plenty of blame to go for the remainder of 2016 is only and 4) a rigorous regulatory budget
Obama claims credit for New leaders stepping into the around among borrowers and lend- slightly higher. This includes the cap grounded in honest cost-benefit
White House inherit problems, pol- ers on Wall Street and Main Street, last six months of the recession, analysis, independent of agencies
an economy that Clinton icies and trends that affect the the Federal Reserve, regulatory and but more important, seven years of proposing the rules.
and, even more stridently, economy well into their presiden- rating agencies, presidents and anemic recovery. Deep recessions Such policies, of course, are
cies and beyond. They likewise Congress. But fairly or not, histori- usually are followed by rapid re- anathema to the self-proclaimed so-
Sanders are blasting. bequeath economic circumstances ans document what occurred on coveries. For example, the seven cialist Bernie Sanders. And switch-
to their successors. President Rea- your watch and how you dealt with years following the deep Reagan ing course to implement any of
gan inherited President Carters your in-box. recession of 1981-82 averaged 4.6% them wouldnt be easy for Mrs.
quickly amended her statement, stagflation, and President George Almost seven years since the growth. No wonder Mrs. Clinton is Clinton either, now that she has
telling reporters that Bill would H.W. Bush inherited insolvent sav- recession ended, Mr. Obama has trying to change the subject. tacked left to court Sanders sup-
focus on certain regions or certain ings-and-loans and major banks enacted, amid political rancor, myr- Mr. Obamas successor will in- porters during the primaries. It is
sectors, like the Rust Belt, playing teetering on insolvency from mas- iad policies at great expense to herit his higher tax rates and pres- far-fetched, but if she is elected and
only a part in his wifes economic sive loan losses to Third World American taxpayers. He reached sure for still higher taxes from his turns economic policy over to Bill,
effortsand in any case no decision countries. compromise budget accords with doubling of the national debt and and Republicans retain Congress,
had been made about his having an While Mr. Clinton deserves Republicans. But he has failed to failure to address rapidly growing who knows? As this presidential
official role in the administration. credit for the impressive growth of curtail the escalating growth of the entitlement spending, now includ- campaign has proven, anythingno
Got that? the 1990s, he also owes that suc- unfunded liabilities in Social ing ObamaCare. He or she will also matter how bizarrecan happen.
Meanwhile, the policies Mrs. cess to Reagans support of Paul Security and Medicare, now several inherit a regulatory morass, a cor-
Clinton espousespart continued Volckers disinflation and President times the national debt and already rosive erosion of the rule of law Mr. Boskin, an economics profes-
Obamanomics, part watered-down Bushs resolution of the twin finan- squeezing defense spending. What and separation of powers and a sor at Stanford University and a
Bernienomicsare the opposite of cial crises, which turned headwinds does he have to show for it all? strained national-security budget. Hoover Institution senior fellow, was
what led to economic growth in into tailwinds for the Clinton econ- Mr. Obama will likely go down Nevertheless, in addition to dou- chairman of the Council of Economic
the 1990s, in particular her hus- omy. The dot-com boom and bub- as having the worst economic- bling down on ObamaCare to ce- Advisers under President George
bands successful compromises ble benefited Mr. Clinton as well growth record of any president ment the presidents legacy, Mrs. H.W. Bush.

Terry McAuliffe vs. the Rule of Law

By Charles J. Cooper issued an order on June 1 calling a governor, Tim Kaine, expressly de- them. No wonder the federal courts power could set a dangerous prece-

V
special session of the court to hear clined to issue a blanket restoration have uniformly rejected the claim dent that would have negative conse-
irginias Gov. Terry McAuliffe argument in the case on July 19. order like Gov. McAuliffes, conclud- that Virginias prohibition on felon quences if applied under different
recently signed an executive The executive order defies the ing that such an order would re- voting discriminates on the basis of circumstances by future governors.
order restoring, with the text of the Virginia Constitution. write the law rather than follow it. race. A governor who disagrees with the
stroke of a pen, the right to vote for Article II flatly prohibits all felons Three years later, a bipartisan com- The more relevant historical refer- Commonwealths gun laws could
all 206,000 Virginia felons who have from voting, but it grants the gover- mittee convened and headed by Vir- ence is not the states 1902 constitu- issue a blanket pardon to all persons
completed their terms of incarcera- nor a narrow power to restore voting ginias then-attorney general, Ken tion, but rather its founding consti- convicted of illegal possession or
tion and supervised probation. This Cuccinelli, advised Republican Gov. tution of 1776, which predates the sale of firearms and follow it up with
includes more than 40,000 felons Bob McDonnell that a blanket order Declaration of Independence. Led by similar monthly orders, effectively
convicted of violent crimes. The The governor defied restoring voting rights would be un- James Madison and George Mason, suspending the gun laws.
order also restores the rights to serve constitutional. the framers of Virginias original Reasonable people can disagree
on a jury and to seek and hold public Virginias constitution, Gov. McAuliffe has attempted to constitution sought to ensure that whether all felons should automati-
office, and it makes each of them and centuries of precedent, justify his order by claiming that Vir- the lawmaking power rests in the cally regain the right to vote or serve
eligible to ask a court to restore their ginias felon-disenfranchisement pro- hands of the people themselves. But on a jury. But this is a policy choice
right to own and carry firearms. with the stroke of a pen. vision was introduced into the Con- they also wanted to forever forbid that requires an amendment to the
The sweeping order has no prece- stitution after the Civil War in a their governor from repeating the states constitution, adopted by the
dent in Virginia history, and last racist effort to disenfranchise Afri- kings abuses of executive authority. people of Virginia and their repre-
week Virginias Republican House rights to deserving felons on an indi- can-Americans. He told the Nation Among the abuses they feared were sentatives in the General Assembly
Speaker William J. Howell and Sen- vidual, case-by-case basis. Nothing in magazine in April that in 1901 and royal edicts eerily similar to Gov. not by a single person in the execu-
ate Majority Leader Thomas K. the constitution gives the governor 1902 they put literacy tests, the poll McAuliffes executive ordergrant- tive mansion. Gov. McAuliffes order
Norment Jr. and four other state vot- power to restore political rights en tax and then disenfranchisement of ing blanket clemency to all who invades the exclusive legislative
ers filed a challenge to its constitu- masse to virtually all felons, no mat- felons into the states constitution. violated a particular law. powers of the people and thus does
tionality. Their petition asks the Vir- ter how heinous or numerous their This is not true. The prohibition A related fear today is that Gov. violence to the constitutional rights
ginia Supreme Court to invalidate crimes. on felon voting dates back to 1830a McAuliffes unprecedented assertion of all Virginians.
the governors order before votes are Gov. McAuliffe, a Democrat, has time when African-Americans were of the clemency power is only the
cast in November, lest the validity of acknowledged that for 240 years prohibited from voting altogether. beginning. As Gov. Kaine recognized Mr. Cooper, a lawyer in Washing-
the general election be cast into none of the states 71 other gover- The felon disenfranchisement provi- in 2010 when he declined to issue a ton, D.C., represents the six voters
doubt. Recognizing the urgency of nors exercised wholesale clemency sion could not have been introduced blanket restoration order, such a who have challenged Gov. McAuliffes
the situation, the states high court power. In 2010 another Democratic for the purpose of disenfranchising unilateral expansion of executive executive order.

California Liberals Await the Bernie Effect

By Allysia Finley those can hinge on a few hundred balance of power in the Democratic mento. Billionaire environmentalist a good friend to labor. In wine coun-

B
votes. Despite Californias open pri- caucus, since the Republican minor- Tom Steyer has spent $500,000 sup- trys third Senate district, public
ernie Sanders is hoping to pull mary, in which the top two finishers ity is usually irrelevant except for porting Mr. Beall. unions are bankrolling Mariko Ya-
off an upset victory over regardless of their party face each close votes to block tax increases. In the 11th Senate district, San mada, who supports free commu-
Hillary Clinton in Californias other in November, its unlikely that Consider the 27th Assembly-dis- Francisco supervisors Jane Kim and nity-college education and a ban on
June 7 presidential primary, but- two Democrats will emerge unless trict race in Silicon Valley, where six Scott Wiener are sparring over foods including genetically modified
tressing his argument to Democratic theres very low Republican turnout. Democrats and one Republican are quality of life issues. Ms. Kim, a organisms, or GMOs. Ms. Yamadas
superdelegatesnow in the favor- The Sanders effect could give Demo- on the primary ballot. The general former Green Party member who main contender is Democratic as-
ites pocketthat Mrs. Clinton isnt crats a supermajority in Sacra- election is unlikely to be competi- was recently endorsed by Bernie sembly member Bill Dodd, a former
too big to fail. But even if Mr. Sand- mento, pulling the partyand the tive since Democrats outnumber Re- Sanders, supports a Right to Rest Republican.
ers loses on Tuesday, he could be a stateeven further to the left than publicans in the district by more bill in the legislature that would bar In these and other races, liberal
winner for Californias liberal politi- it already is. than two to one. candidates may benefit from the
cians: The self-described socialist is Public unions, liberal groups, gov- The leading Democratic contend- Sanders campaign. The senators
expected to turn out masses of ernment reformers and businesses ers are Madison Nguyen and Ash Sanders could boost liberal supporters have been holding voter-
young people, and that could be a are wading into the primary in a big Kalra, both of whom have recently registration drives throughout the
boon for down-ballot left-wing can- way. Because of term limits, there served on the San Jose city council. Democrats in down-ballot Bay Area, including at medical mar-
didates for the state legislature. are six Senate (of 40) and 16 Assem- In 2012, Ms. Nguyen supported races, pulling the state ijuana shops, farmers markets and
In heavily Democratic California, bly seats (of 80) open. The goal of sweeping public-pension reforms college campuses. Last month, ana-
the partys primary is when most many working to influence the pri- which Mr. Kalra complains eroded even further leftward. lytics firm Political Data reported
legislative contests are decided, and mary is to shift the moderate-liberal employee morale and created the that new voter registration in Cali-
most toxic labor-management rela- fornia during the first four months
tionship in the citys history. Labor police from clearing homeless en- of this year is at its highest since
groups have endorsed Mr. Kalra, campments. She also wants to restrict 1980. Nearly half of newly regis-
PUBLISHED SINCE 1889 BY DOW JONES & COMPANY while Ms. Nguyen enjoys support tech-company shuttle buses that tered voters are Democrats; just
from government reformers, like ferry employees around town and 16.7% are Republicans. Two-thirds
Rupert Murdoch Robert Thomson
Executive Chairman, News Corp Chief Executive Officer, News Corp former mayor Chuck Reed, who have stirred resentment in some are under age 35, and about 30% are
Gerard Baker William Lewis hope to elect more moderate Demo- quarters. Considered a pro-business Hispanic.
Editor in Chief Chief Executive Officer and Publisher crats to the legislature. moderate in San Francisco, Mr. These trends suggest that the
Rebecca Blumenstein, Matthew J. Murray DOW JONES MANAGEMENT:
In an overlapping Senate district, Wiener opposes both proposals. primary electorate will be more lib-
Deputy Editors in Chief Ashley Huston, Chief Communications Officer; oil companies have spent $340,000 The Democratic supervisors also eral than usual, a good sign for
DEPUTY MANAGING EDITORS: Paul Meller, Chief Technology Officer; backing a challenge by term-limited differed on a pair of local referen- Democrats. The party needs only to
Mark Musgrave, Chief People Officer;
Michael W. Miller, Senior Deputy;
Edward Roussel, Chief Innovation Officer;
Democratic Assembly member Nora dums last fall that would have pick up one Senate and two Assem-
Thorold Barker, Europe; Paul Beckett, Asia;
Christine Glancey, Operations; Jennifer J. Hicks, Anna Sedgley, Chief Financial Officer; Campos to unseat incumbent Jim imposed a building moratorium on bly seats to reclaim the supermajor-
Digital; Neal Lipschutz, Standards; Alex Martin, Katie Vanneck-Smith, Chief Customer Officer Beall. Ms. Campos was one of 21 market-rate condos in San Fran- ity that Democrats briefly held in
News; Ann Podd, Initiatives; Andrew Regal, Video;
OPERATING EXECUTIVES: Democratic Assembly members ciscos Mission District and limited 2013 before three senators were
Matthew Rose, Enterprise; Stephen Wisnefski,
Professional News; Jessica Yu, Visuals
Nancy McNeill, Corporate Sales; (most representing middle and low- short-term apartment rentals separately indicted on charges of
Steve Grycuk, Customer Service; income communities) who helped through startups like Airbnb. Both corruption and fraud. (Two have
Paul A. Gigot, Editor of the Editorial Page; Jonathan Wright, International;
Daniel Henninger, Deputy Editor, Editorial Page DJ Media Group: defeat a sweeping climate-change referendums failed despite Ms. since been convicted.) Fair warning
WALL STREET JOURNAL MANAGEMENT: Almar Latour, Publisher; Kenneth Breen, bill last year that would have given Kims backing. to California voters who also pay
Trevor Fellows, Head of Global Sales; Commercial; Edwin A. Finn, Jr., Barrons; the California Air Resources Board In the Central Coast 30th Assem- taxes: This time around, thanks to
Chris Collins, Advertising; Jason P. Conti, Legal; Professional Information Business:
Suzi Watford, Marketing and Circulation; Christopher Lloyd, Head; plenary authority to cut statewide bly district, public unions, nearly all Bernie Sanders, a Democratic super-
Joseph B. Vincent, Operations; Ingrid Verschuren, Deputy Head gas consumption by 50%. Ms. Cam- Democratic statewide officers and majority would likely be much more
Larry L. Hoffman, Production pos recently said: I always think Assembly Speaker Anthony Rendon liberal than the last one.
EDITORIAL AND CORPORATE HEADQUARTERS: about real-world impacts from the are backing Karina Cervantez Alejo,
1211 Avenue of the Americas, New York, N.Y., 10036 legislation we pass, a sentiment not the wife of term-limited Assembly Ms. Finley is an editorial writer
Telephone 1-800-DOWJONES
shared by many Democrats in Sacra- member Luis Alejo, who is known as for the Journal.
A12 | Friday, June 3, 2016 * *** THE WALL STREET JOURNAL.

WORLD NEWS

Draghi Urges Patience on ECB Stimulus

European bank sees for much of this year. viser to Prime Minister Shinzo
The ECB has ramped up its Elusive Target Abe, has said the bank should
little improvement in stimulus aggressively in recent The ECB has slashed interest rates below zero and launched major bond-buying programs, expand its asset purchase pro-
inflation, but has more months, slashing interest rates but a slump in oil prices has kept ination far below its target of just under 2%. gram this month, timing the
further below zero, accelerat- move to coincide with a reboot-
measures in pipeline ing its bond-purchase program Sept. 6, 2012 June 5, 2014 Sept. 4 ing of Abenomics.
and announcing a series of ECB announces potentially ECB cuts interest rates ECB cuts rates, ECB economists also raised
BY TOM FAIRLESS cheap loans for banks. Some of unlimited bond-buying below zero, introduces cheap announces private-sector their growth forecast for the
AND PAUL HANNON those steps have yet to be im- program, known as OMT four-year loans for banks bond-purchase program eurozone economy in 2016 to
plemented. 1.6% from 1.4%, and continue
VIENNAThe European The banks latest quarterly 3% 2012 13 14 15 16 to project an expansion of 1.7%
Central Bank sounded a note economic forecasts, published in 2017.
of cautious optimism on the Thursday, indicated that fresh Mr. Draghi highlighted risks
eurozones economic recovery stimulus remains a distinct pos- 2 to the growth outlook related
on Thursday after leaving its sibility. Eurozone inflation is to developments in the global
1.8 trillion ($2 trillion) stimu- likely to edge up only gradually, Ination economy, including a possible
lus unchanged. to 1.6% in 2018 from 0.2% this target exit of Britain from the Euro-
1
But President Mario Draghi year, still far below target, the pean Union. But he said that
left open the door to fresh ac- central bank said. the ECBs current policies
EUROZONE INFLATION
tion if inflation remains below If those forecasts are cor- make a lot of difference, and
targeta distinct possibility, rect, the ECB would have 0 that investors should wait to
judging by the ECBs latest missed its inflation goal for al- see the full effects of what has
forecasts. It is quite clear we most six years. been decided. The bond-pur-
will not hesitate to act, Mr. Mr. Draghi stressed that the 1 chase program, he added, is
Draghi said at a news confer- forecasts dont include policy proceeding smoothly, and could
ence. Still, the balance of measures that are to be en- be adjusted if policy makers
[economic] risks has improved acted this month, including face constraints in the quantity
on the back of the monetary- corporate-bond purchases, due Jan. 22, 2015 Dec. 3, 2015 March 10, 2016 April 21 of bonds they can buy.
policy measures taken and the to start Wednesday, and cheap ECB unveils ECB cuts rates, ECB cuts rates, accelerates Draghi reopens door With so many of the an-
stimulus still in the pipeline. four-year loans for banks. He quantitative-easing extends QE by QE, announces additional to fresh rate cuts nounced programs still to re-
Despite a recent rise in oil painted a picture of a gradual program 6 months cheap four-year loans ally get under way and the im-
prices, ECB economists barely economic recovery in the 19- Sources: WSJ Market Data Group (oil price); Eurostat (ination) THE WALL STREET JOURNAL.
pact of past policy measures
raised their inflation forecast member currency bloc and still unclear, we suspect they
for this year, and left projec- urged investors to be patient. would expect the ECB to con- The ECBs decision could con- policy meeting on June 14-15, or will be standing pat on major
tions for next year and 2018 The forecasts are a snap- tinue revising down its core- tribute to renewed divergence at a subsequent meeting in July. innovations for several more
unchanged. That indicates fur- shot of how you see things inflation projections over the among the worlds three most- The Bank of Japans board months, said Tim Graf, head
ther stimulus may be needed if now, Mr. Draghi said. coming quarters, paving the influential monetary authorities. will meet June 15-16, having had of macro strategy for Europe
policy makers are to meet Many analysts said the ECB way for additional easing later Senior Federal Reserve offi- its bullish views of the underly- at State Street Global Markets.
their inflation target of just would likely need to boost its in the year, said Luigi Sper- cials have indicated that the ing inflation trend there shaken Todd Buell in Frankfurt
under 2%. Consumer prices bond-purchase program again anza, an economist with BNP U.S. central bank could raise in- by a recent slew of weak price and Riva Gold in London
have been falling in the bloc before it ends in March. We Paribas in London. terest rates again at its next data. Etsuro Honda, a close ad- contributed to this article.

Rome Poll Opens Door to Upstart Party Athens

Cash-strapped city may prove to be a poisoned chalice for antiestablishment 5 Star Movement Takes Step
BY GIADA ZAMPANO

ROMETrash cans in
To Secure
Romes historic center over-
flowed this week as collec-
tors staged a 24-hour strike,
Aid Funds
leaving locals and tourists BY NEKTARIA STAMOULI
who came for the Colosseum
and la dolce vita zig-zagging ATHENSGreeces Parlia-
to avoid smelly heaps of gar- ment approved a number of
bage. fiscal adjustments required for
It was an apt image for a the disbursement of the next
city notoriously plagued by bailout tranche of some 7.5
corruption, union strife, di- billion ($8.37 billion), as Greek
lapidated transport and tee- officials on Thursday ex-
tering finances. pressed confidence that the
Rome is simply unman- funds would arrive soon.
ageable, said Rome native A conference call between
Lucio Pacelli, a 75-year-old members of the Euro Working
receptionist at a hotel across Group is expected to take place
from the Trevi Fountain, as next week to review how much
STEFANO MONTESI/CORBIS/GETTY IMAGES

he watched illegal vendors progress has been made on the

besiege the tourist crowds. pending issues and give the
We would need someone green light for the release of the
with a magic wand to handle badly needed bailout funds.
this. The disbursement would still
The city has suffered a require approval by the parlia-
political vacuum since the ments of some eurozone coun-
ouster in October of the tries. Officials said some loose
mayor over expenses irregu- ends will be completed by then,
larities. As Romans prepare while a few minor issues could
to go the polls Sunday to be postponed until September.
vote for a new one, frustra- Trash piled up during a 24-hour strike by waste collectors this week in Rome, a city plagued by corruption and teetering finances. A long and difficult circle
tion with traditional parties [for the Greek economy] is
has created an opening for Rome, for better or for tigation in 2014 uncovered before a blackout on opinion says would cost only 10% of formally completed today,
one of Europes largest anti- worse, would be its acid pervasive ties between orga- polls showed Ms. Raggi lead- what a subway line costs per Prime Minister Alexis Tsipras
establishment parties, the 5 test. nized crime and City Hall. ing with 29% of the vote. kilometer. said in a televised address at a
Star Movement. Romes finances are pre- Since ex-Mayor Ignazio Ma- The candidate from the Dem- Her Democratic Party op- cabinet meeting, adding that
A win by their candidate, carious. It has 12 billion rino was forced to resign, ocratic Party polled 24%. ponent, Roberto Giachetti, the country is heading toward
37-year-old Virginia Raggi, ($13.4 billion) in debt, some the city has been managed Two other center-right can- believes Roman citizens are a period of recovery and calm.
would add to the surge of dating back to the 1960 by an outside administrator. didates bring up the rear. ready to give him and his Earlier Thursday, the Euro-
upstarts across the continent Olympic Games. Mr. Marino denies wrongdo- I believe many Romans party a new opportunity to pean Central Bank said it
and could boost the 5 Star Its public transport sys- ing. are hopeful for a change, govern the city. Romans would start accepting Greek
Movements chances in the tem, one of the oldest in Eu- About 13 million Italians said Ms. Raggi in an inter- have understood that we government bonds as collat-
next national election. But rope, is woefully inadequate, will vote in local elections, view. Politicians need to made a huge effort in clean- eral in its liquidity operations
given Romes situation, it with large swaths of the with more than 1,300 towns feel citizens are breathing ing up the party, he said. after all pending issues over
could also prove a poisoned citys periphery scarcely and cities, including Milan, down their neck. Mr. Giachetti wants to re- Greeces compliance are re-
chalice for the party. served. The transport com- Turin and Naples, called to Ms. Raggi has promised negotiate the citys debt with solved. The move is expected
Until now the 5 Star panys finances are dire, with elect new mayors and local to publish public spending the Italian treasury to more to boost Greek banks access
Movement has only gov- over 1 billion in debt. Fare- representatives. But most of reports and all public ten- than halve the interest rates. to cheap liquidity and, indi-
erned small cities, and acted beating is rampant. the attention has been on ders on the citys website, Ms. Raggi agrees on the rectly, the Greek economy.
as a major opposition force Romes roads are so ne- the capital, where voters are increase the number of need for renegotiation, but Mr. Tsipras also said he ex-
at the national level, said glected that there is a pot- leaning toward Ms. Raggi, a ticket inspectors on buses, says she first wants an audit. pects that possibly as early
Franco Pavoncello, professor hole every 15 meters on av- lawyer and former city coun- and study an aerial tramway The government hasnt as July, the country will be
of political science at Romes erage. cilor. to connect neighborhoods at said whether it is open to eligible for the ECBs govern-
John Cabot University. A major corruption inves- A poll published May 20 the citys edgesa move she such a negotiation. ment-bond purchase program.

Governor Races in Mexico Highlight Local Mismanagement

BY JUAN MONTES For centuries, from Aztec leged diversion of federal overall public finances. Experts
emperors to Spanish viceroys, funds, corrupt practices by the and government officials see
MEXICO CITYA dozen power was highly concentrated state police and the killing of no risk of a state defaulting in
governorships are up for grabs in Mexico. While that is much 15 journalists since 2010, the the short term.
Sunday in states as disparate less the case now at the fed- most of any state. But Mexicos central bank
as Chihuahua in the northern eral level, governors have been A poll published Wednesday has repeatedly warned debt has
desert and Veracruz on the called Mexicos modern vice- by the newspaper Reforma been growing at much faster
SUSANA GONZALEZ/BLOOMBERG NEWS

Gulf Coast. But most have roys, especially in rural states showed Hector Yunes from the rates than the economy and
something in common: a heavy that are governed like fiefs. governing PRI, his cousin Mi- could become unsustainable.
public debt that has raised Once the power of the guel Angel Yunes from the op- Also, state revenues remain low
questions about economic mis- Mexican president started to position National Action Party as local politicians are reluc-
management and corruption. wane in the late 1990sthe (PAN) and Cuitlahuac Garcia of tant to increase taxes.
Poverty and income in- state governors filled the vac- the leftist Morena party with The problem prompted Con-
equality have also climbed in uum, accumulating a political around 30% each. gress to pass in March a bill
most states holding elections, power with very few checks A victory by Mr. Garcia that tightens conditions under
according to government data. and balances and managing in- would be a big boost for Mo- which states can take on debt,
State services such as police creasingly bigger budgets, renas founder Andres Manuel even allowing the federal gov-
remain understaffed and un- said David Prez Esparza, a re- A rally for the leftist Morena party in Mexico City last weekend. Lopez Obrador, who hopes to ernment to intervene if federal
derpaid, and crime in many searcher at University College Campaigning ended Tuesday night, ahead of Sundays election. win the presidency in 2018. funds are used as collateral.
parts has grown, according to London. Of the other 11 states, the Meanwhile, in the past five
government-accountability Half of the states with elec- has grown tenfold to $29 bil- President Enrique Pea Nietos PRI currently controls eight. years the federal audit office
nonprofits. tions Sunday have more than lion, despite federal transfers Institutional Revolutionary The election is too close to call has found irregularities in $13
Such problems reflect the doubled their debt since the over that time of more than Party (PRI) has governed the in three of the 11Aguascali- billion of federal funds trans-
uneven progress Mexico has previous election in 2010, and $900 billion, or more than 85% state since 1929 and its loss entes, Oaxaca and Tamaulipas. ferred to the states.
made since the election of for- it has gone down in only one, of state budgets. would be seen as a blow for The state debt load repre- Economic mismanagement
mer President Vicente Fox in government data show. Veracruz, Mexicos third his government. sents only 3% of Mexicos an- among states is common, said
2000 ended seven decades of Over the past two decades, most populous state, is the Veracruz also embodies nual economic output, and Diego Daz, an expert at the
one-party rule. debt in the Mexicos 32 states biggest political prize at stake. many of Mexicos problems: al- isnt yet seen as a threat to the Mexican think tank IMCO.
 CITY NEWS A14, A15 | ARTS & ENTERTAINMENT A16 | HEARD & SCENE A16 | SPORTS A17
OSCILLOSCOPE LABORATORIES
WSJ.com/NY
Knife Ban Spurs
Legal Fight Over
Arrests in City
BY CORINNE RAMEY
William Urrego was walking
through the Port Authority on
his way to work when a police
officer stopped him in the bus
terminal.
The officer asked for the
knife clipped to his pocket,
then handcuffed him, arrested
him and took him to the pre-
cinct, he said.
Its needed to unpack ev-
erything that comes in bulk,
said Mr. Urrego, 36 years old,
of the red-handled folding knife
he used to open boxes in a New
Jersey warehouse. His case is
scheduled to be dismissed.
The state Assembly
voted Thursday to
narrow the definition
of a gravity knife.
Such folding knives, known
as gravity knives, and the ar-
rests and prosecutions of peo-
ple who carry them, have long
been controversial in New York
City. Last month, the Legal Aid
Society filed an amicus brief in
a federal-court case in which
an artist, art dealer and re-
tailer are suing the city and
Manhattan District Attorney
Cyrus Vance Jr. The public-de-
fender organization says tens
of thousands of New Yorkers
have been unfairly arrested for
carrying knives that are tools,
not weapons.
This is the most unfair law-
enforcement practice in New
York state, said Martin
LaFalce, staff attorney at the
Legal Aid Society.
Lawyers for the city said the
brief contains unproven allega-
tions, brings up issues far
afield from the current suit and
was filed too late.
The brief, which the judge is
considering whether to allow,
creates an unlikely alliance be-
tween the public-defender or-
ganization and an advocacy
group called Knife Rights,
which is essentially the Na-
tional Rifle Association of the
knife world.
[The law] does nothing to
stop crime, and nothing to
stop anything, except for peo-
ple going about their busi-
ness, said Doug Ritter, chair-
man of Knife Rights, which is
funding the suit. This is really
not a partisan issue.
A knife is considered a grav-
ity knife, according to state
What Is a Gravity Knife?
During World War II, German military engineers designed the original
gravity knife for paratroopers who might need to cut themselves free
of their parachutes while they were injured, stuck in a tree or had
limited use of their hands. The user pressed a button or other
mechanism, which would make the blade slide out by force of gravity.
A folding knife that can be opened
by gravity or centrifugal force is
considered a gravity knife under New
York state law. Law-enforcement
ofcials often use a wrist-ick test to
make this determination.
Source: Court documents
70
TODAYS
Weather
Real Feel
9 a.m. 64
HIGH
5 p.m. 70
Record High
95 (1895)
CLOUDY, Sunrise/Sunset
STORMS 5:26 a.m./8:23 p.m.
Saturdays High
80
Fits of Fury
The Fits opens in New York ARTS | A16
law, which prohibits its posses-
sion, if it can be opened by
the force of gravity or the ap-
plication of centrifugal force.
The state Assembly voted
Thursday to narrow this defini-
tion. Legislation is also pend-
ing before the state Senate, al-
though a spokesman for the
Senate Republicans said it
wasnt clear if it would be
voted on this session.
In practice, defense attor-
neys say, the legal fate of a
knife owner rests on whether a
law-enforcement official can
open it with a flick of the
wrist. Criminal liability cant
turn on the athletic prowess of
the police officer, said Mr.
LaFalce, the Legal Aid attorney.
A spokesman for the NYPD
said the department follows
New York state penal law when
arresting people for possessing
gravity knives.
For the Manhattan district
attorneys office, the issue is
one of public safety. We dis-
agree with attempts to decrim-
inalize a category of dangerous
weapons, particularly at a time
when there has been an uptick
in slashings citywide, said
spokeswoman Joan Vollero.
In a memo to elected offi-
cials, the district attorneys of-
fice said the current law
doesnt pose a real threat to
people who carry knives for
employment purposes.
Even when such individuals
are arrested, if it appears to the
District Attorneys Office that
an individual was at the time
using the knife at issue for a
bona fide employment purpose,
the case will be quickly dis-
missed, the memo says.
The Legal Aid Society says
this hasnt been the case, par-
ticularly for people with crimi-
nal records who use folding
knives for work. New York law
permits prosecutors to charge
defendants who are arrested
for carrying gravity knives
with a felony if they have a
previous conviction.
From July through Decem-
ber 2015, the Manhattan dis-
trict attorneys office charged
65 Legal Aid clients with felo-
nies for gravity knife posses-
sion, the public-defender or-
ganization said.
The original gravity knives
were designed by German mili-
tary engineers during World
War II for paratroopers with
limited use of their hands.
The New York state law de-
fining gravity knives was en-
Please see KNIFE page A14
timidating superhero nick-
THE WALL STREET JOURNAL.
N.Y. Sports Lineup
7:05 p.m. Friday
Yankees
@ Orioles
7:10 p.m. Friday
Mets @ Marlins
For N.Y. sports coverage, see A17
* * THE WALL STREET JOURNAL.
Mayor Bill de Blasio greets people at the First Baptist Church of Crown Heights in April. His support among black voters is waning.
Blacks Reassess de Blasio
Amid investigations,
mayor works to mend
trust with minorities
who buoyed him in 13
BY MARA GAY
AND JOSH DAWSEY
In April, New York Mayor
Bill de Blasio visited a black
church in the Brooklyn neigh-
borhood of Crown Heights and
received a standing ovation.
Two weeks ago, his wife, Chir-
lane McCray, visited several
black churches in one day.
Thursday night, black pastors
met with Mr. de Blasio at Gra-
cie Mansion.
A little more than a year
ahead of Mr. de Blasios bid for
re-election, his most reliable
base of support remains black
voters. Yet, as Mr. de Blasio
has contended this spring with
Carnegie Elects a New Chairman
BY JENNIFER SMITH
A new billionaire is taking
over at Carnegie Hall: private-
equity titan Robert F. Smith,
who was elected chairman of
the concert halls board of
trustees Thursday afternoon.
In a milestone for the hall,
he will be its first African-
American chairman.
A former Goldman Sachs
banker, Mr. Smith is the
founder, chairman and chief
executive of Vista Equity Part-
ners. The Austin, Texas, firm
invests in software and tech-
nology-enabled companies and
has about $25 billion in assets
under management.
Whats in a Nickname?
Dont Ask This Scooter
BY ANDREW BEATON
Several Mets stars have in-
names: Noah Syndergaard is
Thor. Matt Harvey is the Dark
Knight. David Wright is Cap-
tain America.
Others have cool monikers
based on their names: Jacob
deGrom is deGrominator. Curtis
Granderson is the Grandy Man.
Yoenis Cespedes is known sim-
ply as Yo.
Then theres Michael Con-
forto. His teammates call him
Scooter.
I dont know why, he said.
Whatever the guys want to
call me, its fine with me.
Scooter, the 23-year-old out-
fielder in his second season
with the team, says he has had
a number of investigations
into his fundraising activities,
polls and interviews suggest
that his backing among black
New Yorkers is eroding.
A poll released in May by
Quinnipiac University showed
58% of black voters supported
him, down from 77% in Janu-
ary. In a Wall Street Journal-
NBC New York-Marist poll re-
leased in April, 49% of blacks
described Mr. de Blasios job
performance as excellent or
good, a decline of 10 percent-
age points from last May.
Even more troubling to the
mayors aides and allies: His
trustworthiness rating in the
May survey by Quinnipiac
dropped among all voters,
even black voters, coming in
at 43% overall. It marked the
first time Mr. de Blasio had
registered below 50% in the
category, and it fell from
about 80% in January among
Ronald O. Perelman, left, and
Robert F. Smith, right.
Mr. Smith fills the seat fi-
nancier Ronald O. Perelman
vacated in October, when he
stepped down after less than
eight months as chairman,
having alleged the hall was
mismanaged.
Carnegie Hall trustee and
several nicknames in his life.
He has been called Hammer
because of his initials, MC, a
reference to 1990s-era hip-hop
artist MC Hammer. Hes also
been called Toe and Forts,
from shortened versions of his
last name. Granderson just
calls him Forto.
But pretty much as soon as
he was called up to the majors
last year, somebody dubbed
him Scooter. And it stuck.
I just call him it because
when I got up here everyone
else was calling him it, said
rookie starter Steven Matz.
Figuring out how it started
is harder than it sounds. The
first people to call him Scooter
were members of the Mets
pitching staff. But even some of
Please turn to page A17
Canadian Lands
Met Opera Post
CITY NEWS | A14
black voters to 60% in May.
Keeping black voters in the
fold is critical for the mayor,
in part because his approval
rating has slipped below 30%
among white voters, according
to the Quinnipiac survey as
well as The Wall Street Jour-
nal-NBC New York-Marist poll.
Stay out of trouble, said
Jean Davis, of Harlem, who re-
ferred to the mayor. Ms. Davis,
57 years old, said Mr. de Bla-
sios political problems are of
his own making. You get tired
of people just railing on him.
It makes him look stupid. And
it makes us look stupid for
voting for him.
In 2013, the mayor won 96%
of black voters and 85% of His-
panic voters but just 54% of
white voters.
As Mr. de Blasios political
fortunes have been tested, he
has worked to strengthen his
Please see MAYOR page A14
philanthropist Mercedes T.
Bass served as acting chair-
woman during the search for a
successor. She resumed her
position as a vice chairwoman
on Thursday, hall officials said.
Mr. Smiths election closes a
tumultuous chapter for Carne-
gie Hall, which recently cele-
brated its 125th anniversary
and whose board includes
some of the most influential
people in New York Citys fi-
nancial and cultural worlds.
His elevation to chairman
also marks a historic moment
for the music venue. In recent
years the hall has embarked on
a number of efforts aimed at
boosting diversity and inclu-
Friday, June 3, 2016 | A13
ED REED/NEW YORK MAYORS OFFICE
Slipping
Do you approve or disapprove
of the way Bill de Blasio is
handling his job as Mayor?
Black voters
80%
70
60
May 2016
50 Approve
58%
40
30 Disapprove
31%
20
10
0 Don't know
2014 2015 2016
Source: Quinnipiac University telephone poll;
most of recent of 1,038 New York City voters
conducted May 18-23; margin of error: +/-3.0
percentage points
THE WALL STREET JOURNAL.
sion, both in its programming
and in initiatives to expand the
pool of classical musicians.
Mr. Smith is a relative new-
comer to Carnegie Hall, having
joined the board in 2013.
He donated $1 million toward
the halls 125th anniversary gala
last month, and has supported
its musical education and access
initiatives personally and
through the Fund II Foundation,
an organization he founded that
focuses on preserving the Afri-
can-American experience and
issues that include providing
music education.
In a statement, Mr. Smith
said he was humbled and
Please see BOARD page A14
SCOTT POLLACK
A14 | Friday, June 3, 2016
From Paying in Change
To Funding an Institute
BY MELANIE GRAYCE WEST
Its being called the Mat-
tone Family Institute for Real
Estate Law for good reason.
Joseph M. Mattone Sr., 84
years old, is giving $3.5 mil-
lion to St. Johns School of
Law in honor of his family, ca-
reer and love for his alma
mater.
With the help of his penny-
pinching parents and generous
siblings, Mr. Mattone was the
only one of nine siblings to
complete college. He started at
St. Johns Preparatory School,
then graduated from St. Johns
University in 1953 and its
school of law in 1955.
Mr. Mattone, chairman of
Mattone Group, LLC, a
Queens-based real-estate de-
velopment and construction
company, is a member of St.
Johns Board of Trustees. He
also founded of the law offices
of Mattone, Mattone, Mattone,
Mattone, Mattone, Megna and
Todd.
His schooling didnt come
easily. His father, a bartender,
provided the $18 in monthly
Joseph M. Mattone Sr.
KNIFE
Continued from page A13
acted in 1958. While people
who need knives for legitimate
work reasons do get arrested,
some with serious criminal his-
tories shouldnt be carrying
such knives, said Eugene
ODonnell, a former NYPD offi-
cer and prosecutor.
We shouldnt gloss over the
fact that these knives can kill
people, said Mr. ODonnell,
who teaches law and police
studies at John Jay College of
Criminal Justice.
Some people who have been
arrested for gravity knives say
the typical sign is a knife clip
sticking out from ones pants
pocket. John Copeland, an art-
BOARD
Continued from page A13
honored to serve as Carnegie
Halls next chairman, and that
he was looking forward to
building on the Halls already
considerable outreach efforts
into communities to reach our
next generation of music lov-
ers and performers.
Born in Colorado, Mr. Smith
studied engineering at Cornell
University and earned an
M.B.A. from Columbia Busi-
ness School. He joined Gold-
man Sachs in 1994 and worked
in technology investment
banking in New York and Sili-
con Valley before founding
Vista in 2000. The firm, ranked
among the top-performing pri-
vate equity shops, has been in-
volved in a number of billion-
dollar-plus acquisition deals in
recent months.
Mr. Smith has an estimated
net worth of $2.5 billion, ac-
cording to Forbes magazine,
which ranked him No. 268 on
its 2015 list of the 400 wealth-
iest people in the U.S.
Clive Gillinson, the halls ex-
ecutive and artistic director
for more than a decade,
CORRECTIONS 
AMPLIFICATIONS
St. Peters Church in Mid-
town Manhattan is a Lutheran
church. An article Thursday
about the nearby Citicorp Cen-
ter incorrectly said St. Peters
is a Roman Catholic church.
Readers can alert The Wall Street
Journal to any errors in news articles
by emailing wsjcontact@wsj.com or
by calling 888-410-2667.
tuition for him to go to prep
schoola sum paid each time
in quarters.
When his mother died, his
siblings came together to up-
hold her wish that the youn-
gest Mattone would finish col-
lege. They helped with money
and housing.
For his part, Mr. Mattone
promised her that I would
never leave school if it was in
my power, he recalled during
a recent interview.
He kept up his grades, com-
pleted school on time and took
a job on Wall Street upon his
graduation at the age of 21.
Others followed him: two chil-
dren and a grandchild are
graduates of St. Johns and
two daughters, two sons and a
handful of other relatives at-
tended St. Johns School of
Law.
Mr. Mattone owes his inter-
est in real estate to an older
brother who worked as a
property appraiser for the City
of New York. The elder Mat-
tone would take his brother
along to meetings and apprais-
als as a way to baby-sit. Mr.
Mattone enjoyed watching his
brother and decided to get
into real estate to represent
deals.
The idea for a real estate
institute is to give students a
footing in analyzing the
changing trends in real estate,
the markets and real estate
legislation, said Mr. Mattone,
who still goes to work daily.
Among other things, the
gift from Mr. Mattone will al-
low for the hiring of a director
for the institute, a physical
space at the school and an ex-
pansion of curriculum, confer-
ences and symposiums, said
Mr. Simons.
The gift will be announced
at a gala later this month, and
the institute is scheduled to
open this fall.
ist and one of the lawsuits
plaintiffs, was arrested on
Manhattans Lower East Side
when his folding knife, which
has a 3-inch blade, was clipped
to his pocket, court documents
say. His case was later dis-
missed.
Several years ago, Kenny
Brock was waiting for a bus in
Harlem when a police officer
asked what was clipped to his
pocket. Mr. Brock, a Broadway
stagehand, took out a folding
knife that he uses for work.
Then Mr. Brock, now 41, got
arrested for the first time in
his life. He was handcuffed,
held in a cell for about three
hours, and released with notice
to appear in court, though the
case was ultimately dismissed.
He has since bought a simi-
lar knife.
praised Mr. Smiths passion for
music and efforts to connect
underserved communities to
the arts.
He said Mr. Smith demon-
strated a remarkable degree of
energy and engagement during
his three years on the board,
contributing both suggestions
and significant financial sup-
port to the halls music-educa-
tion programs.
The new chairmans digital
savvy will also come in handy.
Its an area were looking
to develop in a really major
way, Mr. Gillinson said. Hes
very interested in it, and has a
lot of people working for him
who can give us advice.
The upheaval at Carnegie
Hall began last year, when Mr.
Perelman raised concerns
about the boards oversight of
operations at the hall and ac-
cused Mr. Gillinson of impro-
prieties, including a lack of
transparency in his interac-
tions with board leadership.
In November Carnegie Hall
said the boards executive
committee was satisfied that
Mr. Gillinson complied with his
professional responsibilities,
citing a review by an outside
law firm. At the time a spokes-
woman for Mr. Perelman said
the halls statement didnt en-
compass the full scope of the
findings.
For his part, Mr. Gillinson
said he prefers to think about
the future, not the past.
He said the search commit-
tee scouting for Mr. Perelmans
successor looked at both inter-
nal and external candidates.
In the end, they came up
with an absolutely unanimous
recommendation, Mr. Gillin-
son said. There wasnt any
question that this was the per-
son they hoped the board
would choose.
CITY NEWS
Yannick Nzet-Sguin, 41, has been named music director of the Metropolitan Opera. He will succeed James Levine in that post.
Met Opera Has New Leader
Nzet-Sguin, now at
Philadelphia Orchestra,
will be the third person
to hold directors title
BY JENNIFER SMITH
The Metropolitan Opera has
selected a new musical leader:
Yannick Nzet-Sguin, the
Montreal-born music director
of the Philadelphia Orchestra.
An in-demand guest con-
ductor at major opera houses
and orchestras, Mr. Nzet-S-
guin, 41 years old, has won
praise for his energetic leader-
ship in Philadelphia since he
assumed that post in 2012. He
is also the artistic director and
principal conductor of the Or-
chestre Mtropolitain in Mon-
treal, and serves as music di-
rector of the Rotterdam
Philharmonic Orchestra.
Mr. Nzet-Sguin will be the
third to hold that title at the
Metropolitan Opera. James
Levine, the Mets music direc-
tor for the past four decades,
Devonne Mayrant, 24, the Bronx: He has a lot to say about helping
the community, helping lower-income people, so Id support him.
Jean Davis, left, 57, Harlem: You get tired of people just railing on
him. Kayse Lewis, 38, the Bronx: He could be a better manager.
Melvin Folks, 52, the Bronx: Hes going to go down as another
David Dinkins. He will not get elected for a second term.
* * THE WALL STREET JOURNAL.
stepped down from the post at Met Opera debut in 2009 and
the close of the 2015-16 sea- has conducted there each sub-
son. sequent season. Last fall he
The appointment of Mr. opened the Mets 2015-16 sea-
Nzet-Sguin, announced son, leading a new production
Thursday morning, caps a dif- of Verdis Otello. In April
ficult transition for the Met. 2017 he is scheduled to con-
In April the company said duct a revival of The Flying
Mr. Levine would assume a Dutchman, his first Wagner
new position as music director opera at the Met.
emeritus. The news followed I felt that Yannick had the
months of speculation about material to be a future music
the companys succession plan director of the Met some years
and whether Mr. Levines med- ago, Mr. Gelb said. There is
ical issues, which include Par- no question that he is filled
kinsons disease, were interfer- with appeal and has enormous
ing with his ability to conduct. charisma. But thats a byprod-
Mr. Nzet-Sguin wont be uct of his artistry.
at the Met on a full-time basis In his new role, Mr. Nzet-
until the 2020-21 season, Sguin will be responsible for
though he will be involved in the Mets overall music quality,
the companys artistic plan- with artistic authority over the
ning immediately. He will as-
sume an interim title as the
Mets music director designate
in the 2017-18 season.
companys orchestra, chorus
and music staff. He will work
with Mr. Gelb to oversee plan-
ning and casting of each sea-
Peter Gelb, the Mets gen- son.
eral manager, said Mr. Nzet- Mr. Nzet-Sguin will resign era houses function, Mr.
Sguin would have a presence from his position in Rotterdam
at the company from now un- in 2018 but plans to continue
til he becomes music director. his duties with the Philadel-
Mr. Nzet-Sguin made his phia Orchestra and has ex-
MAYOR
Continued from page A13
ties with minority voters. In
2013, as a candidate, he spoke
of a tale of two cities, lining
up with New Yorkers whose
troubles he blamed on the en-
trenched interests of elites.
After he took office, the
mayor emphasized language
that evoked unity. He fre-
quently cited a vision of One
New York.
Now, say political observers
and some of his aides, Mr. de
Blasio has taken up a more di-
visive tone.
In Harlem last month, the
mayor said the voices of the
status quo would find
many, many ways to under-
mine progress, to stand in the
way of progress. He was in-
troduced by the Rev. Al
Sharpton, who said the fund-
raising probes shouldnt pre-
vent Mr. de Blasio from mov-
ing forward with his liberal
policies.
Karen Hinton, a spokes-
woman for the mayor, said
black voters would support
Mr. de Blasio because of lower
crime, expanded prekindergar-
ten and more affordable hous-
ing, among other reasons.
New Yorkers will vote for
the person who got things
done for their families and
communities, she said.
Yet it remains unclear if Mr.
de Blasios support will hold first term had shown he
strong, according to voters
and political observers
U.S. Rep. Hakeem Jeffries of
Brooklyn said he believes
black voters may embrace the
idea of a politician being tar-
geted for defending the under-
dog, citing the example of Dr.
JOHN TAGGART FOR THE WALL STREET JOURNAL (3)
Martin Luther King Jr. I cer-
tainly wouldnt put [Mr. de
Blasio] him in that group, he
said. But theres a spectrum
and he may certainly see him-
self as part of that contin-
uum.
Mr. Jeffries, a Democrat
who is said to be eyeing a
challenge to the mayor next
year, said he believes Mr. de
Blasio is still in a reasonably
good place with African-Amer-
ican voters because hes being
compared with 20 years of
JONATHAN TICHLER/METROPOLITAN OPERA
tended his contract there
through 2025-26. Met officials
said the two companies will
also explore potential artistic
collaborations.
Juggling both posts will be
a big job.
Of course I would love to
start earlier, said Mr. Nzet-
Sguin, adding that he is im-
mediately weighing in on cast-
ing and other artistic
decisions.
It will also be Mr. Nzet-S-
guins first time leading an op-
era company. He said his fre-
quent guest appearances at
opera houses around the world
helped him understand the
unique histories and chal-
lenges each company faces.
At the Met, those include
rounds of cost-cutting and fall-
ing attendance at its 3,800-
seat home at Lincoln Center
for the Performing Arts.
Having seen how other op-
Nzet-Sguin said, I can put
that in perspective and maybe
have a few new ideas for the
Met.
Rudy Giuliani and to a lesser
extent Michael Bloomberg.
U.S. Rep. Charles Rangel
said the mayors ties to black
New Yorkers are overstated.
I thought it was his sons
Afro that got him elected in
the black community, said Mr.
Rangel. If he was my No. 1
friend and I wanted to help
him, I would not know who to
call to help the mayor. He
doesnt have friends that I
know, hell no. Hes got Rev.
Sharpton.
Mr. de Blasio has started
working more to attract black
support heading into his re-
election effort, according to the
Rev. A.R. Bernard, a pastor who
heads the Christian Cultural
Center in Brooklyn and is work-
ing on an affordable-housing
project with Mr. de Blasio.
Mr. de Blasio has increased
his visits to black churches,
going to at least 10 in recent
months. Aides fear a black
candidate that could peel away
some of his base, said two
people close to the mayor.
Hes making a concerted
effort to make those rounds
and build those relationships,
Rev. Bernard said. Hes never
going to be able to please ev-
erybody.
Melvin Folks, 52, a mental-
health case manager who
lives in the Bronx, said he
voted for Mr. de Blasio the
first time but probably
wouldnt next time.
Mr. Folks said the mayors
wasnt able to deliver on his
promises to help keep low-
and middle-income New York-
ers in the city. Look around.
Brooklyn is going to look like
Harlem soon, he said. Hes
not so good at what he
thought he could do.
We Want to Hear
From You
Have something to say about
an article in Greater New
York? Email us, along with
your contact information, at
gnyltrs@wsj.com. Your letter
could be published in our
weekly Feedback column on
Friday. Letters will be edited
for brevity and clarity. Please
include your city and state.
 THE WALL STREET JOURNAL.
Atlantic City Bid
To Stay Afloat
Hits New Phase
BY KATE KING
After a bruising battle with
New Jersey Gov. Chris Chris-
tie and state lawmakers over
a rescue package, Atlantic
City Mayor Don Guardian
faces an even bigger fight as
he seeks to save his city from
both a state takeover and
bankruptcy court.
Under the terms of a deal
signed into law by Mr. Chris-
tie last Friday, Mr. Guardian
has until late October to fig-
ure out how to balance Atlan-
tic Citys budget for the next
five years. It is a tough task
for a city that has a $100 mil-
lion budget deficit and a
credit rating so low that no
one in their right mind, as
Mr. Guardian said, would lend
it money.
If Atlantic City fails to
present a plan the state
deems acceptable, the state
can seize control of every-
thing from city assets and col-
lective-bargaining contracts
to council-meeting minutes.
Some civic leaders said they
would consider legal action if
the state moves forward with
a takeover.
Mr. Guardian, a Republican,
has said he can make the cuts
necessary to get Atlantic
Citys budget in line, but some
top elected officials in the
state voiced skepticism.
I wonder why we havent
seen the plan already, Mr.
Christie, a Republican, said
Wednesday, referring to the
mayor. Did he not know that
at some point someone was
going to have to be responsi-
Place Your Bets
AL BELLO/GETTY IMAGES
EARLY TO RIDE: A horse and rider trained at sunrise Thursday
for the June 11 running of the Belmont Stakes at Elmont, N.Y.
Greater
New York
Watch
CONNECTICUT
Bail-Reform Measure
Is Effectively Dead
Democrats in Connecticuts
House of Representatives de-
clined on Thursday to vote on
legislation that would eliminate
bail for most misdemeanors, ef-
fectively killing one of Gov. Dannel
Malloys top legislative priorities.
Democratic Speaker of the
House Brendan Sharkey said his
caucus supported the concept but
wanted to see more revisions to
the legislation and input from the
public before voting on it.
He said lawmakers are un-
likely to revisit the issue this
summer. The regular legislative
session ended on May 4.
The proposal would have
eliminated bail for misdemean-
ors except in certain cases, in-
cluding when a judge determines
that the defendant is considered
a risk to others or is accused of
domestic violence.
Joseph De Avila
NEW YORK CITY
Another NYPD Officer NEW YORK CITY
Disciplined in Probe Rare Postage Stamp
A high-ranking New York Po- Returned After Years
lice Department official was
placed on desk duty on Thurs-
day, the latest fallout from a
* * * * * *
By the Numbers
 $100 million budget deficit
this fiscal year.
 $150 million in property-tax
refunds owed to the Borgata
Hotel Casino & Spa.
 $240 million owed to
bondholders.
 $6.5 billion tax base this
year, down 68% from $20.5
billion in 2010.
 Almost five months before a
balanced-budget plan is due.
 Moodys Investors Service
rating: Caa3, negative outlook.
ble for balancing his budget?
Ticktock, ticktock, ticktock.
Mr. Guardian didnt return
a request for comment Thurs-
day.
Balancing Atlantic Citys
budget is a daunting chal-
lenge, said Kevin Lavin, the
citys former emergency man-
ager, who conducted an in-
depth review of the citys fi-
nances last year.
Its going to take a lot of
work by the people down
there, a lot of negotiation,
Mr. Lavin said. When you
have the pensions and espe-
cially the health care going up
the way it is, its not sustain-
able.
Fueled by tax revenue from
a longtime monopoly on East
Coast casino gambling, Atlan-
tic Citys budget has swelled
to more than $200 million for
federal corruption probe.
Deputy Chief John Sprague,
45 years old, of the Force Inves-
tigation Division, has served the
department for 25 years, a po-
lice spokeswoman said.
On the advice of counsel,
Deputy Chief Sprague has relied
upon his constitutional right as a
citizen of the United States, said
Roy Richter, president of the Cap-
tains Endowment Association, the
union that represents Mr.
Sprague. The chief will continue
to cooperate with whatever ad-
ministrative process the depart-
ment deems appropriate.
Mr. Sprague is the 11th offi-
cial to be disciplined as part of
the probe.
Zolan Kanno-Youngs
LONG ISLAND
EPA Seeks to Expand
Glen Cove Cleanup
Federal environmental regula-
tors in New York City have pro-
posed additional cleanup efforts
at the site of a $1 billion devel-
opment in Long Island that once
housed a metal-processing plant,
salvage yard, oil-storage tanks
and a city dump.
The Environmental Protection
Agency said soil tests found
some areas are contaminated
beyond allowable levels at the
site of the Garvies Point water-
front project in Glen Cove.
Associated Press
A rare postage stamp stolen
in 1955 has been returned to its
rightful owner in New York City.
Friday, June 3, 2016 | A15
CITY NEWS
WAYNE PARRY/ASSOCIATED PRESS
Atlantic City now faces the task of coming up with a budget plan that the state finds acceptable. Above, the citys boardwalk last July.
a population of fewer than its employees. The mayor said tion, which sought an immedi- ning.
40,000 residents. he would also push to dissolve ate takeover of Atlantic City Mr. Sweeney, a Democrat,
Competition from casinos the independent authority in January, will determine said the state has given Atlan-
in neighboring states in the that operates the citys water whether to accept Atlantic tic City the tools and time it
past decade has hurt the utility and bring the function Citys budget proposal in Oc- needs to balance its budget,
citys gambling profits, result- in-house, which he said would tober. That, coupled with but he doubts officials there
ing in the closures of four ca- generate $4 million a year in state Senate President Steve have the political fortitude
sinos and shrinking the citys additional revenue. Sweeneys public skepticism to make difficult cuts.
tax base to $6.5 billion this The rescue package ap- this week over whether Atlan- The governor and I dont
year from $20.5 billion in proved last week stabilizes tic City can balance its bud- have any predetermined plans
2010. the revenue Atlantic City can get, has led some to fear that for their failure, Mr. Sweeney
The city owes more than expect to receive from its ca- the deck is stacked against said. But I dont have a lot of
$150 million in property-tax sinos, removing the risk of the city. confidence in the elected offi-
appeals to one of its casinos costly property-tax appeals Were praying the Senate cials of Atlantic City.
and $240 million to bondhold- and guaranteeing the city president and the governor Mr. Guardian said last week
ers. The mayor has said he about $120 million annually, will be receptive to positive that he realizes the state now
plans to hire an accounting half of which Mr. Guardian plans that our mayor and our has wide latitude in deciding
firm and bond counsel to ad- said would go to the county council and our community whether to accept the citys
vise the city on these matters. government and school dis- proposes to them, said Betty plan or initiate a takeover.
Mr. Guardian said he would trict. The state is also ex- Lewis, president of Atlantic Clearly they could make it
seek to save several million pected to send millions of dol- Citys NAACP chapter and a impossible for us, he said.
dollars through early-retire- lars in taxpayer-funded aid to city union officer. Were going to be moving
ment incentives, which the the city to keep it out of The state, Ms. Lewis said, forward that this is a project
legislation passed last week bankruptcy court. should not go into this with that were all working to-
allows Atlantic City to offer Mr. Christies administra- that no attitude in the begin- gether in cooperation.
State Offers More Aid for Homeless Man Arrested
BY ZOLAN KANNO-YOUNGS was the beginning of a
broader, $10.4 billion home-
which said the states efforts
fell short of earlier promises
In Shooting
New York Gov. Andrew lessness initiative, including and didnt address the need BY PERVAIZ SHALLWANI
Cuomos administration on 6,000 supportive-housing for construction of support-
Thursday announced a hand- units over five years and ive-housing units. The New York Police De-
ful of initiatives focused on 1,000 emergency beds, that The homeless dont need partment on Thursday ar-
homelessness, including about Mr. Cuomo discussed in Janu- another working group, a rested a 24-year-old man on
500 more emergency beds in ary during his State of the Campaign 4 NY/NY Housing murder charges in the shoot-
New York City and a push to State speech. spokesman said, but rather ing death of a 16-year-old girl
increase supportive housing, James S. Rubin, New Yorks for Mr. Cuomo to keep his killed while baby sitting her
which provides shelter as well homes and community-re- promise to fund thousands of cousin.
as social services. newal commissioner, called units. Taariq Stephens, who was
The state has requested the plan comprehensive in James Allen, a spokesman captured on surveillance
proposals from nonprofit or- the sense that it serves the for Mr. Cuomo, said the ad- video with a submachine gun
ganizations interested in run- entire state. ministration is in talks with just before Tuesdays shoot-
ning 1,200 units and provid- State officials also said state lawmakers to nail down ing, turned himself into po-
ing services, such as they would create a council of the financing for the units. lice Thursday night, officials
counseling and employment community leaders and The state also completed said.
training. The request didnt agency workers focused on inspections of New Yorks Police identified Mr. Ste-
include construction of the homelessness, led by Mr. Ru- more than 900 homeless shel- phens as a suspect in the
units themselves. bin and Fran Barrett, Mr. ters and found deficiencies in death of Shemel Mercurius
Homeless policy has been Cuomos interagency coordi- 97% of them. It issued reports and released a photo of him
in focus in New York this nator for not-for-profit ser- on the inspections and has from surveillance video re-
year, with both the city and vices. notified shelters with severe covered from the Brooklyn
state increasing their efforts, The governors plans drew violations that they have up apartment building where the
sometimes at odds with each criticism from Campaign 4 to 180 days to resolve them shooting took place Tuesday
other. State officials said NY/NY Housing, a supportive- and would be subject to clo- night, NYPD Chief of Detec-
Thursdays announcement housing-advocacy group, sure if they dont. tives Robert Boyce said.
But the mystery surrounding Sweeney, who agreed to advance
the so-called Inverted Jenny re-
mains: Who stole it and three
Mr. Christies nominee in ex-
change for picking a Democrat.
other such stamps at a conven-
tion in Virginia?
Mr. Christie earlier selected Re-
publican Judge David Bauman,
On Thursday at the World
Stamp Show, a man from North-
whom Mr. Sweeney vowed to op-
pose. The court now has three
ern Ireland who inherited one of Republicans, three Democrats and
the stolen stamps from his an unaffiliated justice.
grandfather watched as it was Associated Press
NEW JERSEY
Lawmakers Advance
Steeplechase Betting
A bill that would allow bet-
ting at steeplechase horse races
CARLO ALLEGRI/REUTERS
has cleared a legislative hurdle.
The measure approved by an
Assembly panel on Thursday
would allow a running-race per-
mit holder in good standing with
the state to coordinate wagering
The recovered Inverted Jenny. with the Far Hills Race Meeting
Association.
handed to officials of the Belle- Associated Press
fonte, Pa.-based American Phila-
telic Research Library. NEW JERSEY
A total of 100 Inverted
Jenny stamps were printed in
Law Forbids Traffic
1918, erroneously depicting an In Big-Game Trophies
airplane printed upside-down. Gov. Chris Christie signed a
Associated Press measure on Thursday that makes
it illegal to import or export big-
NEW JERSEY game trophies of animals that are
threatened or endangered.
Compromise Nominee Lawmakers approved the
Joins Supreme Court measure in response to the kill-
Lawyer Walter Timpone was ing of Cecil, a Zimbabwean lion,
sworn in at Seton Hall Univer- whose death sparked protests
sity Law School on Thursday as last year. Violators face a civil
an associate judge on New Jer- penalty of up to $1,000 for a
seys Supreme Court, following a
long impasse over the political
first offense and up to $3,000
for subsequent offenses.
balance of the court. People can no longer bring in
Mr. Timpones nomination was parts or products from animals
part of a deal between Republi- including elephants, leopards, li-
can Gov. Chris Christie and Demo- ons, tigers and rhinos.
cratic Senate President Steve Associated Press
A16 | Friday, June 3, 2016 * * THE WALL STREET JOURNAL.

ARTS & ENTERTAINMENT

OSCILLOSCOPE LABORATORIES (2)

Movement, Not Dialogue, Drives Plot in The Fits
BY LUCY FELDMAN ennale College-Cinema pro- phobic in a way, very con- ing rules, partially out of ne-
gram, scoured the internet for tained, Ms. Holmer said. cessity and partially out of in-

A
t the end of a March the right dance form for her Her first film jobs were in stinct, said Ms. Holmer.
New Directors/New story. When she stumbled the camera department. She The community center
Films festival screening across a YouTube video of the enrolled in the New York Uni- rooms were filled with lines,
of The Fits, an audience Q-Kidz, a drill team based in versity Tisch School of the either painted on the floor or
member raised his hand and Cincinnati, she found not only Arts with the idea that she from brick walls and window
asked, Are we supposed to the dance style but also the would work toward becoming frames. Ms. Holmer and Mr.
understand the arc of the dancers and actors she would a cinematographer and found Yee created a rule to never tilt
story? eventually cast, including Ms. work on camera crews. For the camera up or down but in-
After a few chuckles from Hightower. The Fits, she brought on cin- stead lift or lower it, main-
around the theater, director The sound, the script and ematographer Paul Yee, a fel- taining parallelism with the
Anna Rose Holmer took a beat, the cinematography all revolve low Brooklyn-based NYU alum. ground to create a familiar
then responded: I see a around Tonis preteen perspec- They filmed in the Cincin- and homey feel, Mr. Yee said.
pretty clear arc in this film, tive. An eerie, suspenseful nati community center where Whenever they break the
but its not happening in a score conveys Tonis discom- the Q-Kidz practiced. The ruleduring a fit, for exam-
clear plot-device or dialogue- fort in the world of dance even buildingand their micro- plethe room distorts to em-
driven format. before the fits begin. budget from the Venice Bien- phasize Tonis discomfort.
Instead, the story of The It was an exercise in ex- nale programboth posed We wanted the camera and
Fits, opening in New York treme P.O.V. and subjective challenges. Because the film- the camera movement very
June 3, is told through move- Royalty Hightower, top and above, as Toni in The Fits. vantage point, Ms. Holmer makers relied heavily on natu- much to be an extension of
ment. said. ral light for shooting, they what was going on inside of
We meet 11-year-old Toni fits begin: One by one, the on, said Ms. Holmer, 31, who Ms. Holmer, along with edi- took note of the position of her, he said.
(Royalty Hightower) in her lo- girls fall prey to mysterious was born in Pawling, N.Y., and tor Saela Davis and producer the sun coming through each We get stuck in a really
cal community centers boxing fainting spells. now lives in Brooklyn. Lisa Kjerulff, drafted the script room at a given time of day so narrow view of what cinema is
gym as she counts abdominal The fits, while inspired in The fits might be about the but relied on the cast members they could schedule scenes ac- and what a movie should look
crunches and practices jabs part by modern cases of mass powers and dangers of belong- to translate the lines into lan- cordingly. like, especially with commer-
with her older brother. But she psychogenic illness, arent re- ing to a group, she said, or the guage they would actually use. Many scenes in the film use cial films aimed at the U.S.
watches the girls on the cen- alisticnor are they meant to horrors of adolescence, when Adults rarely enter the single moving shots, sticking market, said Ms. Holmer, re-
ters dance team and, when be. Each actors episode was young people begin to lose scenes. A dance coach, a medi- close to Tonis perspective. flecting on the unconventional
alone, mimics their moves. choreographed in isolation, so control over their fast-chang- cal specialist and some adult Covering a scene in a single techniques she used to com-
Toni joins up, but she is off- they look different. In a real ing bodies. legs step into the frame, but shot is more efficient than municate Tonis experiences.
the-beat and stiff, and strug- outbreak, the symptoms would All answers are correct, Ms. Holmer wanted the two shooting from multiple angles, If you come to The Fits
gles to fit in. Her new friend be the same. she added. teen dance captains to hold said Mr. Yee, a blessing for the looking for dialogue to tell you
Beezy leaps and plays, telling We definitely started to Ms. Holmer, a first-time fea- the most power over the filmmakers who had only everything about how the
her without words that she take it to an allegorical, meta- ture director who developed group. about 20 days to film. story is moving, you may get a
needs to loosen up. Then the phorical space pretty early the film through the Venice Bi- The whole film is claustro- We found ourselves mak- little lost.

HEARD & SCENE

Muppets and Swedish Pop Stars

There arent with someone who might as helped John Oliver raise over
a lot of big well be made of fabric, felt $2 million at Cipriani 42nd
parties in New and foam, at the Sesame Street on Wednesday. The
York that have Workshop gala, you have the main focus of the evening
the charm of pleasure of being in the pres- was to celebrate Sesame
the Sesame ence of actual, real, live Mup- Workshops newest initiative,
MARSHALL Workshop pets. which focuses on childhood
HEYMAN gala. Though Elmo, Abby Cadabby, autism.
on many a Cookie Monster and Grover But the provocative televi-
night you were just some of the Ses- sion host Mr. Oliver also
might find yourself chatting ame Street denizens who used the platform to raise
some exploratory questions
about everyday life on Ses-
DESIREE NAVARRO/WIREIMAGE

ame Street.
How, for one, does
Hoopers Store stay in busi-
ness?
No one ever seems to pay
for anything, Mr. Oliver
noted. They come in, they
eat, talk about something ed-
ucational Im sure, then just
walk out. Its an unsustain- John Oliver and Charlie Puth with Cookie Monster, Elmo, Abby Cadabby, Count von Count and Grover
able business model! at the Sesame Workshop gala, above. Guests at MoMAs garden party, below, from left: Henry and
LE CORSAIRE Then, Mr. Oliver won- Marie-Jose Kravis; Linda Allen, Amanda Fuhrman and BJ Topol; and Jill and Peter Kraus.
The Pirate dered: does Cookie Monster
even like cookies?
To me it looks like hes
Tonight 7:30pm just crumbling up cookies in
Tomw 2 & 8pm front of his mouth and mak-
ing an awful mess that some-
one else has to sweep up,
said Mr. Oliver.
And, perhaps most incen-
diary of all, Mr. Oliver asked
Elmo why he and his furry
monster friends walk around
all day unclothed, but then
JARED SISKIN/PMC (3)

when you go to bed, you put

on pajamas?
Gee, responded Elmo,
that is a good question.
Its hard to compete with
Charlie Puth performing his
Discover a treasure hit single One Call Away,
of dashing pirates, and then, with Muppet ver-
dramatic rescues and sions of Youve Got a
Friend and Sing, but the
virtuoso dancing in this Museum of Modern Art put
swashbuckling comedy! up a fair fight.
Twelve blocks uptown,
the Swedish pop singer
Robyn performed at the in-
stitutions annual Party in
the Garden. (She also per-
forms on Friday at Gover-
nors Ball.)
What this party lacks in
Metropolitan Opera House | 212.362.6000 | abt.org hand puppets and Big Bird,
No refunds or exchanges. Casts and prices subject to change. V. Part and C. Stearns. Photo by F. Ferri. it more than makes up for in
Bottom l to r: S. Abrera. Photos by Gene Schiavone. Photo by Marty Sohl.
heavy hitters. Among the
guests at Wednesdays affair,
which raised $4 million,
were Leon and Debra Black,
Marlene Hess, Marie-Jose
and Henry Kravis, Jo Carole
and Ronald Lauder, Catie
and Donald Marron, Amy
and John Phelan, Helen Mir-
ren and Taylor Hackford,
Jerry Speyer and Katherine
Farley, Aby Rosen and Sa-
mantha Boardman, Jeff and
Justine Koons and Aerin
Lauder Zinterhofer.
They joined to honor MSD
Capitals Glenn Fuhrman and
his wife Amanda; collectors
Sally and Wynn Kramarsky,
and artists Huma Bhabha,
Mark Bradford and Brice
Marden.
Meanwhile, just for fun, at
the Palm Tribeca, Michael
Lynton, Amy Pascal and
Graydon Carter hosted a din-
ner for the hot Hollywood
commodity Noah Hawley,
who has just released a novel
called Before the Fall and
is the showrunner behind the
F/X series Fargo and a
coming X-Men show called
Legion.
The crowd included Greta
Gerwig, Aubrey Plaza, Tom
Rothman, Dan Stevens,
Fisher Stevens, Michael Cun-
ningham, Rachael Horovitz
and Debra Messing.
That said, Gay Talese told
Mr. Hawley, I just heard of
you yesterday.
Mr. Hawley said that his
influences run the gamut
from movies and music to
Don DeLillo, Kurt Vonnegut,
Douglas Adams and the Coen
Brothers.
It all goes in there on
some level, said Mr. Hawley.
Even, maybe, Muppets and
Swedish pop stars.
THE WALL STREET JOURNAL. * * Friday, June 3, 2016 | A17

SPORTS
The Mets Mystery Scooter Grins and Wears It
Continued from page A13
them, like Matz, are baffled by
its meaning. That hasnt
stopped them from calling him
Scooter, of course. Its the name
they use to keep track of the
basketball rankings for the mini
hoop they have in the club-
house, or when theyre simply
trying to get his attention.
I just kind of ran with it
because I thought it was really
funny. I wish I could tell you,
Syndergaard said. It kind of
rolls off the tongue. He looks
like a Scooter!
Why its funny or what
type of Scooter he looks like
is less clear. The handle has
deep roots in both popular
culture and baseball history,
but an investigation into the
moniker revealed that even
those were dead ends. Like so
many kids, Scooter had a
scooter when he was younger,
but said, I dont think that
has any relevance.
Then theres the The Mup-
pet Show, the iconic puppet
program starring Kermit the
Frog and Miss Piggy. Scooter
was an orange stagehand on
the show with a shock of hair
and eyeball spectacles. Ryan
Gennett, the Milwaukee Brew-
ers second baseman whom
fans know as Scooter Gennett,
has said that the Muppet was
the inspiration for his nick-
name as a kid.
J.D., the character played by
Zach Braff on the television
show Scrubs, is occasionally
referred to as Scooter and has known that Rizzutos nickname Sandler movie Billy Madison, when Syndergaard is on the 2-1 extra innings loss to the 10th overall in the 2014 draft.
a motorized scooter he calls stemmed from his diminutive much less his nickname. mound. Syndergaard even White Sox and is 1-for-22 in his He was the second-fastest posi-
Sasha. And on SpongeBob 5-foot-6-inch frame and the All of this has made the walked around Manhattan in a last six gamestheres little tion player from that draft to
SquarePants, theres a parrot- quickness with which he car- Scooter story a mystery, even Thor costume, complete with doubt that hes part of the reach the big leagues.
fish named Scooter. ried it around the diamond. to Scooter himself. They helmet and cape, earlier this Mets crew of rising stars. De- So maybe the nickname was
More notably, the nickname Scooter Conforto, on the dont remember who started season. Matz says hes never spite the rough patch, his .813 a bit rushedand if Scooter
has a history in New York other hand, is 6-foot-1 and it, but it happened, he said. had a nickname that has stuck, on-base-plus-slugging percent- doesnt know Scooters mean-
baseball: Beloved former Yan- muscled, and he was 3 years Its even stranger in a locker though thats perhaps more un- age ranks third on the team. ing, its possible that nobody
kee Phil Rizzuto was known as old when Rizzuto retired from room with stars whose nick- derstandable than an inexplica- That he performed so well does.
Scooter from his playing days broadcasting. Syndergaard, names have become so recog- ble nickname. so quickly (he had an .841 OPS In the meantime, Matz is
as a Hall of Fame shortstop also 23, didnt even know who nizable among Mets fans. They While Scooter has been in 2015 and hit three home runs sticking with his explanation:
through his career as a com- Rizzuto was, apart from the wear Batman masks to Har- mired in a slump latelyhe in the playoffs) came as a bit of It means a good left fielder.
mentator. But it was widely reference to him in the Adam veys starts and carry hammers went 0-for-6 in Wednesdays a shock after he was selected Thats what it means to me.

Heard On
The Field
Yankees Getting What They Need From Rotation
BY JARED DIAMOND
Masahiro Tanaka as a 0.90 ERA
Late Wednesday night, after in his last three starts.
watching his team squander
yet another pitching gem, a
glum Joe Girardi vocalized
what everybody who had seen
the game was thinking.
You shut this team down
to two runs in six innings, the
Yankees manager said, you
should have an opportunity to
win the game.
Girardi was referring to the
Yankees 7-0 loss to the To-
Knicks, Hornacek ronto Blue Jays, in which Ma-
sahiro Tanaka surrendered
Make Deal Official just one earned run in six in-
The Knicks officially an- nings before the bullpen im-
nounced their hiring of Jeff ploded. Whether or not he
Hornacek Thursday, weeks af- meant to, Girardi also put into
ter the two sides first agreed words a demoralizing trend
in principle on a three-year that has stung the Yankees in
deal to make him the teams recent weeks.
next head coach. The teams rotation began
The club plans to introduce this season as a huge question
Hornacek, 53, at a midday mark, but lately it has held up
news conference Friday. its end of the bargain and
Hornacek, the former All- more. Entering Thursday
Star guard and Phoenix Suns nights make-up game in De-
coach, replaces interim head troit against the Tigers, the
coach Kurt Rambis, who had starters had worked at least
taken the place of Derek six innings in 13 of their last
Fisher in the middle of this 14 games dating back to May
season. Fisher was fired in 18. Their 2.64 ERA during that
February after a year and a span was the best in the Teixeira entered Thursday The Yankees, understand-
half on the job. Rambis figures American League. sporting a .185 batting average ably, have chosen to focus on Pitching a Fit
to remain with the organiza- All along, the Yankees be- and a 137-at-bat homerless the positives. Their starting
Heres a look at how the Yankees starters have fared since May 18, along with
tion in some capacity, whether lieved that if their pitching streak. Left fielder Brett Gard- pitching ranked 25th in the
how many runs the team has scored in the games they pitched.
as an assistant coach or po- staff could deliver a perfor- ner, an All-Star in 2015, went majors with 4.94 ERA in April,
tentially as a front-office aide mance even close to this good, to Detroit mired in an 0-for-24 then rose to 11th with a 4.11 TEAM RUNS
PITCHER STARTS INNINGS SO/BB ERA PER GAME
to team president Phil Jack- they could wring enough out slump. Catcher Brian McCann ERA in May. The rotation will
ILLUSTRATION BY SCOTT POLLACK; TOM SZCZERBOWSKI/GETTY IMAGES (TANAKA); HOF: ROSS D. FRANKLIN/ASSOCIATED PRESS

Masahiro Tanaka 3 20.0 10/3 0.90 3.0

son, with whom he shares a of their offense to emerge as left Toronto stuck in a 1-for-26 improve even further if the
basketball philosophy and a serious playoff contenders. In- skid of his own. team can fix the scuffling Mi- Nathan Eovaldi 3 18.0 17/5 1.00 4.0
longtime friendship. stead, theyre languishing near The pitching staff has done chael Pineda, who started CC Sabathia 3 19.0 19/3 1.42 3.3
Fridays news conference the bottom of the AL East af- what it can to shoulder the against the Tigers on Thurs- Ivan Nova 3 18.2 15/3 4.34 3.3
figures to clarify a couple of ter suffering a dispiriting load. Tanaka has pitched like a day with a 6.92 ERA. Michael Pineda 2 9.2 9/1 8.38 5.0
the larger questions surround- three-game sweep in Toronto, true ace of late, posting an 0.90 And in a wider lens, the
ing Hornaceks appointment thanks mostly to a miserable ERA in his last three outings. Yankees are still on the up- TOTAL 14 85.1 70/15 2.64 3.6
and what it will ultimately showing from their increas- Meanwhile, Nathan Eovaldi has swing. Buoyed by the six-game Source: Baseball-Reference WSJ
mean for the short- and long- ingly inept lineup. combined his nearly 100-mph winning streak, they went
term future of the teams ros- Everybody in here is frus- fastball with sharp command, 16-13 in May after going 8-14
ter construction. In particular, trated, said designated hitter pitching to a 1.00 ERA. Even CC in April. They even got a win
Hornaceks Suns played at one Alex Rodriguez, who embodies Sabathia, who had to fight for a last Sunday in Tampa Bay de- Notice Of Secured Partys Public Sale Of Collateral Under Uniform Commercial Code
of the NBAs fastest paces, the Yankees problems. The spot in this rotation, has spite recording just one hita
launching 3-pointers at a ro- pitching has done a phenome- turned back time, leading the feat they hadnt managed PLEASE TAKE NOTICE that on Tuesday, June 7, 2016, at 10:00 on an AS-IS, WHERE IS basis and will be made WITHOUT
A.M. local time, LMEZZ 250 W90 LLC (Secured Party), as REPRESENTATION OR WARRANTY, EXPRESS OR IMPLIED,
bust clip while playing two nal job keeping us in games American League with a micro- since 1914. Girardi called it successor in interest to Ladder Capital Finance LLC, will offer AS TO TITLE, QUALITY, MERCHANTABILITY, FITNESS FOR A
and sometimes three point and giving us an opportunity scopic 1.04 ERA in the month really fortunate. for sale at a public auction, and sell to the highest qualified PARTICULAR PURPOSE, POSSESSION, QUIET ENJOYMENT, OR
guards at a time. to win games. Collectively as a of May. (Only Clayton Ker- If the Yankees can sustain bidder, at the front of the New York County Courthouse, ANY OTHER MATTER. Secured Party reserves the right to es-
60 Centre Street, New York, New York 10007, under Section tablish other reasonable bidding procedures and to require
The Knicks, who have been whole were just not getting it shaws was lower.) their newfound pitching power, 9-610 of the Uniform Commercial Code as enacted in the potential bidders to reasonably demonstrate their ability to
among the NBAs slowest done. Failing to capitalize on that they have time to claw back State of New York, all of Secured Partys right, title, and in- perform and close on the acquisition of the Collateral to the
teams over the past four sea- Not lately, at least. kind of effort weighs on a into the race with the Boston terest as a secured creditor of AC NW Retail Investment LLC, satisfaction of Secured Party. Secured Party reserves the
sons and rank near the bottom Since capping a six-game team, even though the pitchers Red Sox and Baltimore Orioles, a Delaware limited liability company (Debtor) in 100% of right to credit bid at the auction. Secured Party also reserves
the membership interests in Armstrong New West Retail the right to adjourn continue, or cancel the auction without
in 3-point attempts, arent cur- winning streak on May 24 that say they have trained them- even though they entered LLC, a Delaware limited liability company (Issuer) pledged further notice. Any parties interested in further information
rently equipped to play that propelled the Yankees back to selves not to worry about the Thursday 71/2 games behind. to Secured Party by Debtor. The principal asset of Debtor is about the Collateral, becoming a qualified bidder, and/
style. That leaves them with a the .500 mark for the first offense. Of course, thats a big if. 100% of the limited liability company interests in the Issuer or the terms of the sale should contact Jonathan Cuticelli of
and certain related rights and property relating thereto Sheldon Good & Company at (800) 516-0015 or jpcuticelli@
choice to make as they enter time since April 14, the teams Nothing changes for me, And expecting an offensive re- (collectively, the Collateral). Secured Party is informed sheldongood.com. Qualified bidders may obtain a confi-
the June 23 NBA Draft and bats have gone silent. They said Tanaka. I always go out surgence might be an ever big- and believes that Issuer owns certain real property and dentiality agreement by visiting http://www.SheldonGood.
free agency: Do they keep play- scored a total of three runs there trying to put up zeros as ger one. the improvements located at 250 West 90th Street, NY, NY. com. Any prospective bidder must satisfy the requirements
ers who seem ill-suited to Hor- against the Blue Jays, undoing much as possible, to try to get The pitching is what sus- This sale will be held to enforce the rights of Secured Party to be a qualified bidder by no later than 12:00 P.M. local
under (i) that certain Mezzanine Loan Agreement dated as time, on Monday, June 6th, 2016. The sale will be conducted
naceks style, or do they seek much of their progress. outs as much as possible. Re- tains you and what gives you of July 20, 2015, and (ii) that certain Pledge and Security by Jonathan Cuticelli, Sheldon Good & Company, a New York
to engineer trades for players Rodriguez has shouldered gardless of what our offense is an opportunity every night, so Agreement dated as of July 20, 2015, each executed by licensed auctioneer, license No. 1387302.
who make more sense? plenty of blame, but he has doing, I just try to go out we need that to stay consis- Debtor in favor of Secured Party. The sale will be FINAL and
Chris Herring company: First baseman Mark there and do my job. tent, Girardi said.
A18 | Friday, June 3, 2016 * * THE WALL STREET JOURNAL.

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Uniteds Business Class
Is Set for an Upgrade
AIRLINES | B3
2016 Dow Jones & Company. All Rights Reserved.
Divide Persists Between Pay, Performance
The best-performing
tier of CEOs received
the lowest median
compensation in 2015
BY THEO FRANCIS
AND JOANN S. LUBLIN
Median pay for chief execu-
tives of the biggest U.S. compa-
nies slipped 4.6% last year, but
the link between annual com-
pensation and shareholder re-
turns remained weak.
A Wall Street Journal analy-
sis of S&P 500 companies found
that none of the years 10 high-
est-paid CEOs ran one of the 10
best-performing companies.
Only three of those executives
DANIEL ACKER/BLOOMBERG NEWS
Subaru hopes to lift its supplies of new vehicles later this year by reclaiming capacity at an Indiana factory now shared with Toyota.
Subarus Rare Problem: Scarcity
BY JOHN D. STOLL
AND YOKO KUBOTA
Chattanooga, Tenn., car
dealer Tim Kelly says he could
use another Subaru, or as
many more as he can get.
Mr. Kelly, who owns one of
the 620 Subaru stores in the
U.S., is among a rarefied club
of car salesmen who are long
on demand and short on sup-
ply. The typical Subaru
dealers day includes telling
prospective buyers they will
need to wait for the next ship-
ment of Outback wagons or
Forester crossoversand hop-
ing they dont walk away and
shop another brand.
I dont think anybody is
happy with being one or two
cars short all the time, Mr.
Kelly, 49 years old, said Tues-
day in an interview a day be-
fore parent Fuji Heavy Indus-
United, Delta Among
Carriers Eyeing Avianca
United Continental Hold-
ings Inc. and Delta Air Lines
Inc. are among suitors consid-
ering bids for Avianca Hold-
ings SA, according to people
familiar with the matter, as
airlines around the world seek
By Dana Mattioli, Liz
Hoffman
and Susan Carey
combinations to help them
withstand fierce competition
and bulk up internationally.
Advisers to Avianca have
distributed a document to po-
tential bidders seeking a $500
million capital injection, some
of the people said, adding that
could develop into a full sale.
The process is in early stages,
the people said, and there may
be no deal at all.
United wasnt immediately
BUSINESS & TECH.
* * * *
led a company ranked among
the top 10% in total shareholder
return.
More broadly, the best-per-
forming tier of CEOs in the anal-
ysis received the lowest median
compensation for the year, at
$10.2 million.
There was little correlation
between executive pay and an-
nual corporate performance
even within the same industry.
In six industries, including utili-
ties and diversified financial ser-
vices, the years top-paid CEOs
ran the worst-performing com-
panies. In seven industries, in-
cluding pharmaceuticals and re-
tailing, the lowest-paid CEOs ran
the best performers.
In the longer term, pay and
performance appear to be more
Empty Lot Company
Buyers shopping for
some Subaru models
will nd little
selection and few Fiat Chrysler
bargains. The
company's days Mazda
supply and incentives
spending are lowest Industry avg.
in the industry. Honda
Toyota
Sources: WardsAuto
(days supply); Autodata
Subaru
(incentives)
THE WALL STREET JOURNAL.
tries Ltd. reported a modest
sales uptick for May, the 54th-
consecutive monthly increase.
Weve learned to live with it.
As retail demand for light
vehicles softens in the U.S.,
Subaru dealers are confronting
a problem unusual for most ri-
available for comment and
Delta declined to comment.
Avianca, one of the largest
airline companies in Latin
America, is based in Panama
and owns carriers including its
Colombian namesake and
Tampa Cargo SA in that coun-
try, and AeroGal in Ecuador.
In 2010, Avianca merged
with Grupo Taca, which had
airlines in El Salvador, Costa
Rica, Peru, Nicaragua and
Honduras. Avianca went public
in 2011 and has a market value
equal to about $600 million.
Should there be a deal for
Avianca, it would be the latest
in a recent string of airline tie-
ups. The pace of consolidation
in the industry has quickened in
recent years, as carriers seek to
bulk up and broaden their scope
amid stiff competition. In the
Please see AIRLINE page B2
WSJ.D B4 | WEATHER B6 | CROSSWORD B6
THE WALL STREET JOURNAL.
closely aligned. Over the past
five years, shareholder return
for most S&P 500 companies
has exceeded the growth in their
CEOs pay, according to an anal-
ysis by ISS Corporate Solutions.
Most companies do a pretty
good job of linking pay and
performance, says John Roe,
head of advisory services at the
Institutional Shareholder Ser-
vices unit. Is there room to
grow? Yes.
Various factors can lead to a
divergence between CEO pay
and annual corporate perfor-
mance, compensation consul-
tants say. Tough times prompt
some companies to reward exec-
utives for strategic or opera-
tional overhauls. Others base
Please see CEO page B5
Average days supply as of May 31
VW
Ford
GM
Kia
23 days
0 20 40
vals: scarcity. The brand has
about a three-week supply of
vehicles in the U.S., or about
one-half of the auto industrys change tailwinds that are now
norm, according to market re-
searcher WardsAuto.com. The
good news: all that demand
lets Subaru skimp on incen-
Chinese Rules Alter Business Paths
BY EVA DOU
BEIJINGA year ago, Hewl-
ett-Packard Co.s then-head of
enterprise business, Bill Veghte,
sat at Chinas elite Tsinghua
University, a bowl of hydrangea
arranged before him in keeping
with Chinese meeting style.
Against a purple backdrop
announcing the arrival of a
Chinese Technology Power-
house, Mr. Veghte said: Today
we start the next chapter.
And with that, a U.S. busi-
ness became a Chinese one.
Since H-P sold 51% of its
China networking business to
Tsinghua Unigroup, an affiliate
of the university, sales have re-
vived. They are up 40% in the
first four months of this year,
compared with a 1% decline for
all of 2015, said Tony Yu, chief
executive of the units reincar-
nation, the New H3C Group.
Once we became Chinese,
Doctor Says Mogul
Retains Mental Capacity
MEDIA | B2
Compensation Connection
Investors and activists have pushed to tie chief executives pay closer to company performance, but results
can be uneven, especially over the short term. Last year, some CEOs got hefty raises even as their companies
lagged behind industry medians. Other CEOs saw their pay drop despite strong performance.
Pay for trailing performance
TOTAL PAY 1 YEAR ONE YEAR TOTAL SHAREHOLDER RETURN
COMPANY CEO (millions) CHANGE Company
Murphy Oil Roger Jenkins $14.1 s10%
HCA Holdings Milton Johnson $17.8 s21%
Emerson Electric David Farr $15.3 s61%
60% 40% 20%
Performing for less pay
Starbucks Howard Schultz $20.1 t 6%
General Electric Jeffrey Immelt $33.0 t11%
Under Armour Kevin Plank $2.4 t32%
60% 40% 20%
Source: MyLogIQ (pay data); Factset (shareholder returns)
Tribune Changes
Name to Tronc;
Board Re-Elected
BY JOSHUA JAMERSON
AND LUKAS I. ALPERT
Tribune Publishing Co. said
shareholders voted to re-elect
the companys board nominees
at its annual meeting Thursday
as the newspaper owner an-
nounced plans to change its
name.
The publisher of the Chi-
cago Tribune and Los Angeles
Times didnt reveal the exact
breakdown of the vote, giving
no indication of how much
support Gannett Co. garnered
for its withhold campaign.
Gannett was encouraging
shareholders to withhold their
votes for the board as a sym-
bolic gesture of no confidence
and support for Gannetts
takeover attempt.
USA Today owner Gannett,
in a statement Thursday, said
it was still reviewing whether
to proceed with its takeover
offer. Gannett said it believed
roughly 49% of shareholders
Average
unaffiliated with Tribune with-
Incentive
held their support of the entire
$3,863 slate of directors. A Tribune
$3,596 spokeswoman said Gannetts
unofficial tally was misleading.
$4,099
Later Thursday, Tribune
$4,056 said it would change its name
$1,781 to Tronc Inc. and launch a new
website, www.tronc.com, as
59 days $3,151
part of a rebranding strategy.
$1,756 Tronc.com will curate content
$2,734 across Tribunes brands.
$2,188 The name change, short for
Tribune online content, is
$610
slated to take effect on June
60 80 days 20, the same day that the com-
panys stock is expected to be-
tives spending, bolstering gin trading on the Nasdaq
margins that in recent years Global Select Market under the
benefited from currency-ex- ticker symbol TRNC.
Tribunes stock currently
abating. trades in the New York Stock
One reason Subarus are Exchange. News Corp, owner
hard to find is they hit the U.S. of The Wall Street Journal,
Please see SUBARU page B2 made a similar switch to Nas-
A researcher works at a Tsinghua Unigroup center in Beijing. H-P
sold 51% of its China networking business to the university affiliate.
some hurdles were gone, Mr. are finding the best way to go
Yu said in an interview. forward in China is by strength-
Western companies have ening joint ventures and con-
struggled with Chinas increas- ducting more of their business
ingly stiff cybersecurity regula- through Chinese partners.
tions and many U.S. tech firms Microsoft Corp., Qualcomm
Friday, June 3, 2016 | B1
Industry
0 20% 40% 60%
0 20% 40% 60%
THE WALL STREET JOURNAL.
daq in 2008.
In April, Tribune registered
Tronc for trademark protec-
tion. It also has sought trade-
marks for troncx, OTT Media,
OTT TV, OTTX, OTT News and
OTT Media Ventures.
Tribune shares fell 1.8% to
$11.38 in 4 p.m. trading in New
York on Thursday.
Meanwhile, about 25 people
attended the shareholder
meeting in Los Angeles, which
lasted just 23 minutes, accord-
ing to a person who attended.
The Los Angeles
Times publishers
new name is short for
Tribune online content.
Representatives of the com-
panywho included Chairman
Michael W. Ferro Jr., Chief Ex-
ecutive Justin Dearborn and
one other board memberde-
clined to give detailed answers
to questions from five share-
holders about issues including
the companys new digital
strategy, the person said.
There was no dialogue.
Gannett was unable to offer
a competing slate of directors
as it had initiated its unsolic-
ited pursuit of Tribune after
the deadline had passed to
wage a proxy fight. Previously,
Tribune had rejected Gannetts
bids at $12.25 and $15 a
share63% and 99% premi-
ums, respectively, over Trib-
unes share price before Gan-
nett made its first bid public.
Tribune has argued that
Gannetts offers undervalued
the company and that more
value could be derived from
Mr. Ferros plan to modernize
its 11 newsroomsusing things
Please see VOTE page B2
Inc. and Cisco Systems Inc.
which all have faced headwinds
in China, including antitrust
probes and espionage accusa-
tionshave formed new Chi-
nese joint ventures in the past
year tailored to meet Chinese
security requirements. Newer
companies such as Uber Tech-
nologies Co. have chosen to en-
ter China through purely Chi-
KIM KYUNG-HOON/REUTERS
nese ventures with all their
data stored in the country.
Beijing recently has shifted
to a softer sell. At a tech meet-
ing last week in Chinas south,
Premier Li Keqiang reiterated
that security rules apply equally
to all companies registered in
China and pledged a more fair,
transparent and predictable in-
vestment environment.
In practice, China has shown
little sign of letting up; earlier
this year, it further tightened
restrictions on online publish-
Please see RULES page B4
B2 | Friday, June 3, 2016
INDEX TO BUSINESSES
These indexes cite notable references to most parent companies and businesspeople
in todays edition. Articles on regional page inserts arent cited in these indexes.
A
Aetna...........................C3
Ally Financial .............. C3
Alphabet ................ B4,B5
Apple......A7,B4,B5,C3,C8
Avianca Holdings........B1
B Group...................A2,C2
Banco Santander.........C2
Bank of America
.......................... A2,C2,C8
Bank of New York
Mellon.......................A2
Barclays.......................C2
Blackstone Group........C2
Blue Cross and Blue
Shield of North
Carolina.....................B3
BNP Paribas................C2
Boeing.........................A2
C
CBS..............................B5
Chevron........................C3
Cisco Systems.............B1
Citigroup.................C2,C8
Credit Suisse...............C2
D Verizon Communications
Dell..............................A1
Delta Air Lines ........... B1
Dentsu.........................B3
Deutsche Bank.......C2,C3
Diamond Offshore
Drilling.......................C3
E Nestl..........................B6
Exelon..........................B4
Expedia........................B5
Exxon Mobil ................ C3
F Oracle.....................B4,B5
Financial Services
Roundtable................C2
INDEX TO PEOPLE
A F
Aberle, Derek..............B4
Aguilar, Omar..............C3
al-Sada, Mohammed...C8
B Roe, John .................... B1
Barra, Mary.................B5
Black, Gavin Campbell C3
Brabeck, Peter ............ B6
Brito, Carlos................B6
Brown, Jeffrey............C3
Bulcke, Paul ................ B6
C will oversee his holdings when
Connolly, Matthew......C3
Cook, Tim...............B4,B5
Corbat, Michael...........C2
Corpataux, Jos .......... C3
Cox, Jon.......................B6
D-E
Dearborn, Justin.........B1
Diller, Barry.................B5
Dimon, James...A1,C1,C2
Dyer, Chris...................C3
Enrico, Roger...............B3
VOTE
Continued from the prior page
such as artificial intelligence
and machine vision technol-
ogyif it is given the time to
take hold.
A merger of the two compa-
nies would tie their household
news outlets up under one
firm, as newspaper companies
have struggled in recent years.
The company last week took
the unorthodox approach of
selling 4.7 million shares of its
stock to medical doctor and
billionaire investor Patrick
Soon-Shiong at $15 eachthe
price Gannett had proposed in
its sweetened bid.
Dr. Soon-Shiongs invest-
ment in Tribune, a 12.9% stake
at $70.5 million, made him the
companys second-largest
shareholder. It also made the
company more expensive for
Gannett to purchase, as it pre-
sumably would have to pur-
chase Dr. Soon-Shiongs
shares, which could push the
total cost of the company up.
As part of the deal, Dr.
Soon-Shiong was slated to take
a seat on Tribune Publishings
AIRLINE
Continued from the prior page
U.S. alone, eight airlines have
merged into four since 2008
and those four control more
than 80% of domestic capacity.
In Latin America, there also
have been some big mergers,
including the 2012 joining of
Chiles Lan and Brazils Tam
in addition to the marriage of
Avianca and Taca.
As Latin American carriers
have developed and some local
economies improved, U.S. air-
lines have been picking partners
and trying to lock in relation-
ships. American Airlines Group
Inc., the leading U.S. carrier to
the region, benefits from its re-
lationship with Latam Airlines
Group SA, formed by the
merger of Lan and Tam.
Avianca had revenue of $4.7
billion in 2014. Profit, exclud-
ing foreign exchange and fuel-
hedging charges was $120 mil-
lion. As of September, the
company had debt of $3.3 bil-
lion. The airline serves more
than 100 destinations in 26
countries, with 176 airplanes,
Ford Motor..................B4
Fuji Heavy Industries.B1
G
Pitney Bowes..............B5
Procter & Gamble.......B3
Publicis Groupe...........B3
Gannett.......................B1 Q Continued from the prior page
General Motors ..... B4,B5 Qualcomm...................B1
Goldman Sachs S cient crossover wagons and
Samsung Electronics..B4
Google ......................... B5 State Street................A2
H T
Havas...........................B3 Takata..........................B4
Health Republic Teavana Holdings ....... B6
Insurance .................. B3 Telefon L.M. Ericsson.B4
Hewlett-Packard.........B1 Tesla Motors...............B4
HSBC............................C2 Toyota Motor..............B2
Huawei Technologies..B4 Tribune Publishing......B1
Humana.......................C3 T. Rowe Price Group...A1
I Tsinghua Unigroup......B1
IAC/InterActiveCorp...B5 U cars for Toyota in Lafayette,
Interpublic Group........B3 Uber Technologies.B1,B6
J UniCredit ..................... C2
Unilever.......................B6
Johnson & Johnson
United Continental
..................................... C3
Holdings...............B1,B3
J.P. Morgan Chase
UnitedHealth Group....C3
..................... A1,C1,C2,C8
V
L-M
Lyft..............................B6 ..................................... C1
Magnetar Capital........A7
Viacom.........................B5
McKesson....................B4 Vogue International
Microsoft.....................B1 ..................................... C3
Morgan Stanley.....A2,C2 Vox Media...................B4
N Unlike most of the foreign
W
Wal-Mart Stores.........B6
News Corp...................B1 Wells Fargo.......A2,C2,C3
O WPP.............................B3
Omnicom Group..........B3 Y stone.
Yahoo...........................B5
P Z
PepsiCo........................B6 ZTE..............................B4
P-R
Ferro Jr, Michael W....B1 Page, Larry..................B5
G Perez, Tom .................. C2
Powell, Jerome...........A1
Gavin, Sarah................B5
Grossman, Robert.......C1
S-V
H Chairman Philippe Dauman and
Safra Catz...................B5
Harp, Dawn Martin.....C3
Scalia, Eugene.............C2
Hughes, Bill.................B5
Schultz, Howard ......... B6
Hurd, Mark..................B5
Stournaras, Peter ....... C3
K Strain, Michael............C3
Kelly, Tim....................B1 Strongin, Steven ........ A2
Kendall, James ........... A1 Sundar Pichai..............B5
Knight, Steven............D5 Veghte, Bill.................B1
L W
Lautenbach, Marc.......B5 Wagner, Che................C3
Leibbrandt, Gottfried..C2 Wood, Andrew............B6
Wright, Jonathan........C1
M
Y trust. Mr. Abrams was removed,
Mayer, Marissa...........B5
Minsch, Rudolf............C3 Yoshinaga, Yasuyaki...B2
Yu, Tony ...................... B1
Moonves, Leslie..........B5
Moynihan, Brian..........C2 Z tered that board members have
Musk, Elon..................B4 Zabritski, Melinda.......C1
KIICHIRO SATO/ASSOCIATED PRESS
Tribune wants to pursue a plan to modernize its 11 newsrooms.
board as vice chairman start-
ing Thursday after the share-
holder meeting.
Mr. Ferro had marshaled
the support of three proxy-ad-
visory firms, Institutional
Shareholder Services, Glass,
Lewis & Co. and Egan-Jones
Ratings Co., and large institu-
tional investors often follow
the recommendations of those
firms.
Meanwhile, a Tribune
according to a December 2015
corporate presentation.
The group also runs a loy-
alty program, a logistics busi-
ness, airport and maintenance
services and runs tours. It sold
a 30% stake in the loyalty
business to a private-equity
investor last year.
Avianca named Hernn
Rincn Lema, a Microsoft
Corp. executive in Latin Amer-
ica, as its new chief executive
in March to replace an interim
CEO who had stepped in after
longtime chief Fabio Villegas
resigned in January.
The family of Germn Efro-
movich, a Bolivian-born entre-
preneur, owns just more than
half of Avianca through a
holding company called Syn-
ergy Group, with the Kriete
family that controlled Taca
holding 14.5%.
A majority of the Avianca
common stock owned by Syn-
ergy has been pledged to se-
cure loans, according to a regu-
latory filing. Mr. Efromovich,
who has interests in businesses
including oil-and-gas explora-
tion, hydroelectric power
plants and telecommunications
infrastructure, started investing
A test showed Sumner Redstone had only a mild degree of cognitive impairment, a doctor said.
Doctor Says Redstone
Retains Mental Capacity
BY JOE FLINT
A doctor for media mogul
Sumner Redstone said the ail-
ing 93-year-old retains the le-
gal mental capacity to make the
decisions he has made in re-
cent weeks regarding oversight
of his controlling interests in
Viacom Inc. and CBS Corp.
Dr. James Spar, who has
counted Mr. Redstone as a pa-
tient for two years, said he met
with him twice in late May, in-
cluding the day that Viacom
board member George Abrams
were informed of their removal
from Mr. Redstones holding
company, National Amuse-
ments Inc., and the trust that
he dies or is incapacitated.
Hes done a bad job running
Viacom, Dr. Spar said Mr. Red-
stone told him when asked on
May 20 why he was removing
Mr. Dauman as a member of the
Mr. Redstone said, because
hes not listening to me.
A Viacom spokesman coun-
been unsuccessful in their at-
shareholder, Capital Structures
Realty Advisors LLC, filed a
lawsuit against Mr. Ferro and
the rest of the Tribune board,
seeking to block the sale of
stock to Dr. Soon-Shiong.
Dr. Soon-Shiong, in an in-
terview, said he had only heard
of the lawsuit through the me-
dia Thursday and hadnt re-
viewed the complaint.
Maria Armental
contributed to this article.
in airlines several years ago.
Avianca is the second-largest
carrier in South America after
Latam.
Both United Continental
and Delta could have reasons
to want to explore a deal with
Avianca. United Continental
lost its largest Star Alliance
member in the region when
Tam merged into Latam, leav-
ing a hole in its network.
Last year, United invested
$100 million for a 5% stake in
Brazils No. 3 carrier, Azul Lin-
has Aereas Brasileiras SA.
In 2012, the Taca brand went
away and Avianca became the
single brand for all the airlines
in the group. The companies
joined the Star Alliance, a global
marketing group anchored by
United and Deutsche Lufthansa
AG, in 2012.
Delta arguably has been the
most active in looking for deals
to strengthen its international
business. In 2011, it took stakes
in Gol Linhas Areas Inteligen-
tes SA, a larger Brazilian air-
line, and Grupo Aeromexico
SAB, the big Mexican carrier.
Since then, Delta has boosted
its AeroMexico stake and is on
track to raise it further, to 49%.
BUSINESS NEWS
tempts to meet with Mr. Red-
Mr. Redstone struggles with
his speech, and an interpreter
was on hand during the inter-
views to decipher his remarks,
said a person familiar with the
exam. Dr. Spar said in his eval-
uation that Mr. Redstone was
well dressed and groomed,
alert and in no distress.
On May 24, Dr. Spar met
with Mr. Redstone again and
the mogul cited Viacoms stock
price, which has risen since
Mr. Dauman was removed
from the trust, as proof of Mr.
Daumans poor performance.
Mr. Redstone clearly com-
municated to me that he un-
derstood and appreciated the
rights, duties and responsibili-
ties affected by those deci-
sions; the probable conse-
quences for himself and other
persons affected by the deci-
sions, and the significant risks,
benefits and reasonable alter-
natives involved in those deci-
sions, Dr. Spar said.
The release of the doctors istered a Mini-Mental State
evaluations comes a day after
Mr. Redstones granddaughter
Keryn Redstone said that
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when she saw her grandfather
in February he seemed un-
aware of his surroundings.
Dr. Spars opinion contrasted
with Mr. Daumans statements
on Mr. Redstones health.
A lawsuit by Messrs.
Dauman and Abrams seeking to
block their removal from the
trust and National Amusements
said Mr. Redstone cannot initi-
ate or participate in meaningful
conversation and his ability
to understand and assess the
consequences of his actions is
limited.
This evaluation was con-
ducted by a paid medical con-
sultant and does not answer
the question of whether Sum-
ner Redstone had sufficient ca-
pacity to make complex deci-
sions impacting the governance
of billion dollar publicly-held
corporations, said a statement
Thursday from Les Fagen of
Paul, Weiss, Rifkind, Wharton
& Garrison, counsel to Messrs.
Dauman and Abrams.
Dr. Spar also said he admin-
gins, the company expects a
Exam that showed Mr. Red-
stone had only a mild degree
of cognitive impairment.
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markets sweet spot: fuel-effi-
SUVs. Another reason is pro-
duction constraints. Unlike its
Japanese rivals, Subaru has
only one U.S. factory, and still
must import many of its vehi-
cles from Japan. And it has
shared that factorys capacity
with Toyota Motor Corp.
Executives say the pressure
should alleviate later this year
when its agreement to build
Ind., ends. It aims to increase
the factorys Subaru output by
80% to nearly 400,000 a year
beginning later this year.
Even with that expansion,
Chief Executive Yasuyuki
Yoshinaga said last month he
is concerned that dealers are
getting frustrated because
they could think that Su-
barus supply conditions are
simply not improving.
auto makers in the U.S., Su-
baru hasnt outlined plans to
build another factory here. Mr.
Yoshinaga said his company
doesnt have enough produc-
tion experts and manufactur-
ing engineers to do it.
Tom Doll, Mr. Yoshinagas
chief of U.S. operations, ac-
knowledges the lack of vehi-
cles risks irking buyers.
Theyre not going to wait
10 weeks, said Mr. Doll, who
has been at Subaru of America
since 1982. But he says: They
will wait four to six weeks [be-
cause] our customers like us
[and] have a little more pa-
tience.
Mr. Yoshinaga is confident
Subaru can handle a mild pull-
back. Even if the market
shrinks, he said, Subarus
business wont be affected.
Mr. Yoshinaga argues that
while Subaru increasingly is
competing against the bigger
brands, its cars remain distinc-
tive.
The bigger concern for Mr.
Yoshinaga is in Japan. Among
the most profitable auto mak-
ers in terms of operating mar-
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nancial year to $2.7 billion
largely due to a stronger yen.
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United to Remake Business Class
United Polaris, the
new class, will launch
in December on a new
Boeing 777-300ER
BY SUSAN CAREY
United Continental Hold-
ings Inc. on Thursday said it
would make over the business-
class cabins on its interna-
tional widebody planes and its
elite airport lounges, its first
major product upgrade in
more than a decade.
Called United Polaris, the
new long-haul business class
will debut in December on a
freshly delivered Boeing
777-300ER plane.
UNITED CONTINENTAL
It will subsequently be rolled
out on other aircraft on order,
including more 777-300ERs,
Boeing 787-10s and Airbus
A350-1000s. United also said it
would retrofit at least 100 dou-
ble-aisle aircraft it already has
in its fleet. The move will spell
the end of the three-cabin lay-
outs that still fly on some older
planes. The No. 3 U.S. airline by
traffic lost some of its best cus-
tomers to its largest rivals in
the aftermath of the rocky
merger of United and Continen-
tal Airlines in 2010.
In recent months, the Chi-
cago-based company has been
trying to improve its service
and employee morale under
the leadership of Chief Execu-
tive Oscar Munoz.
This comes at a time when
the worlds leading airlines are
in a race to upgrade offerings
Health Insurer Sues U.S. Over Payments
BY ANNA WILDE MATHEWS
Blue Cross and Blue Shield
of North Carolina sued the
federal government, becoming
the latest health insurer to
claim that it is owed money
under the Affordable Care Act.
The suit, filed on Thurs-
day in the U.S. Court of Federal
Claims in Washington, D.C.,
says the U.S. didnt live up to
its obligation to pay the insurer
more than $147 million owed
under an ACA program known
as risk corridors, which
aimed to limit the financial ex-
posure borne by insurers enter-
ing the new health-law markets.
The suit argues that the fed-
eral government violated the
language of the health law, as
well as a contractual obligation
to the North Carolina insurer. It
follows a similar suit filed last
month by Highmark Healths
insurance arm, and an earlier
one in February from Health
Former Pepsi Chief Waged War With Coke
BY MIKE ESTERL
Roger Enrico, the former
PepsiCo Inc. chief executive
who nearly toppled Cokes su-
premacy during the 1980s cola
wars, died Wednesday at age 71.
The son of an iron-ore plant
worker, Mr. Enrico grew up in
Minnesota mining country and
dreamed of be-
0BITUARY ing an actor or
ROGER politician but
ENRICO instead climbed
1944-2016 the corporate
ranks before be-
coming a long-
time chairman at the film stu-
dio DreamWorks Animation
SKG Inc.
But he was best known for
turning Pepsi-Cola into a pop-
culture leader through
groundbreaking sponsorship
deals with Michael Jackson,
Madonna and Michael J. Fox.
The advertising blitz and Pepsi
Challenge taste test helped
trigger one of the biggest
blunders in marketing history
in 1985, when a worried Coca-
Cola Co. launched New Coke
but quickly reversed itself af-
ter Coke drinkers rebelled.
Roger Enrico was, quite
simply, one of the most cre-
ative marketers of his or any
generation, Indra Nooyi, Pep-
siCos current chairman and
CEO, said in a statement
Thursday. He was a risk-
taker, never afraid to challenge
the status quo.
Mr. Enrico was snorkeling
Wednesday with friends off
Grand Cayman island when he
became unresponsive, accord-
ing to a family friend. The of-
ficial cause of death hadnt
been determined, this person
said.
Born in the small town of
* *
Airline plans to open new business-class lounges at nine airports, some of which have Global First Lounges, which will be phased out.
in the air and at the airport.
United said it would outfit
its fleet with a custom-de-
signed seat that will be exclu-
sive to the company. The for-
ward-facing pods will offer
direct access to the aisle, re-
cline to a fully flat setting and
provide 6-foot, six-inches of
bed space. Bedding will be de-
signed by Saks Fifth Avenue,
and gel-cooled pillows will be
available on request. United
was set to show off its new
products at an event Thursday
morning in Manhattan.
United Polaris will allow the
airline to fit more seats in its
Blue Cross and Blue Shield of North Carolina says it is owed money.
Republic Insurance Co., which
is seeking class-action status.
The move signals that the
Obama administration is likely
to face a growing legal chal-
lenge from insurers seeking
risk-corridor payouts, as the
2010 health law continues to
generate court battles on sev-
Roger Enrico, shown in 1985, became chief executive of PepsiCo in 1996. He stepped down in 2001.
Chisholm to Italian immi-
grants, Mr. Enrico won a
scholarship to Babson College
in Massachusetts, studying
business administration, be-
fore enlisting in the Navy. He
served in Vietnam, where as a
lowly ensign he said he per-
suaded an admiral to build a
fuel pipeline instead of flying
in supplies, only for the pipe-
line to be repeatedly blown up.
After a stint as assistant
brand manager for Wheaties at
General Mills Inc., Mr. Enrico
joined chips-and-soda giant
PepsiCo in 1971, initially help-
ing market Funyuns, an onion-
flavored snack. He quickly was
promoted to brand manager
for Cheetos and then Fritos,
before heading the companys
operations in Japan and then
South America.
He made a bigger splash af-
ter becoming chief executive of
Friday, June 3, 2016 | B3
BUSINESS NEWS
Rebates
Said to Be
Behind
Ad Deals
BY SUZANNE VRANICA
An eight-month probe by a
marketing trade group re-
vealed that ad agencies in the
U.S. are accepting rebates
from media companies, said
people familiar with the mat-
ter, findings likely to stoke
concerns about transparency
in the industry.
The Association of National
Advertisers found that media
companies are using rebates
to reward ad agencies for buy-
ing a certain amount of adver-
tising time or space on behalf
of their clients, the people
said. The group found that the
practice was widespread
within the sample it studied.
business-class cabins than the late this year. Fliers will be of- bland, old thing, he said, The ANA, which represents
existing seating plan and ac- fered a full buffet and pre- United designed something big advertisers such as
commodate more high-value flight dining menu, shower fa- that revolves around sleep. Procter & Gamble Co. and
customers. United and the de- cilities and secluded areas The company said it con- Johnson & Johnson, briefed
signers also created a new with daybeds. Five other U.S. ducted more than 12,000 hours some advertisers last week on
look for the cabin, with new hubs and airports in London, of research into the wants and the results of the probe.
walls, more blue lighting and, Tokyo and Hong Kong will get needs of its premium clients A spokesman for the trade
on the 777-300ERs, a walk-up the lounges in 2017. and found that no matter group declined to discuss de-
bar, the company said. Mr. Munoz, in an interview, which type of service they said tails of its report, saying its
The carrier also said it declined to disclose the cost of they preferred on board, get- release was imminent.
would open new business- the upgrades. Clearly it was a ting sound sleep trumped all The findings are likely to
class lounges at nine airports, significant investment, but by other considerations. intensify marketers concerns
some of which have the old and large it was stuff we were We reimagined every as- that ad agencies dont have
Global First Lounges, which going to have to do regard- pect of this because we know their best interests at heart
will be phased out. less, he said, such as switch- that in a competitive world, and could be allocating ad dol-
The first United Polaris ing from three cabins to two anything less than game- lars in ways that benefit their
Lounge will open in Chicagos on the wide-bodied planes. changing would be seen as un- own businesses, as opposed to
OHare International Airport Rather than doing a typical acceptable, Mr. Munoz said. those of their clients.
Rebates or agency-volume
bonusesin cash, free ad
space or other servicesare a
common business practice in
Europe and countries such as
China and Brazil. But, histori-
losses on the ACA plans, caus- if the inflows werent sufficient, cally, they havent been part of
ing a financial squeeze. but they later said the program the way U.S. advertising deals
Blue Cross and Blue Shield would be budget neutral, a work. Some ad firms have said
of North Carolina said it lost stance reinforced by Congress publicly that they dont accept
more than $400 million on ACA in a 2014 spending bill. rebates in the U.S.
TRAVIS DOVE FOR THE WALL STREET JOURNAL
products in 2014 and 2015 and A Health and Human Ser- The trade group told the
the risk-corridor payment vices spokesman didnt have advertisers that while some of
shortfall exacerbated the losses. an immediate comment. the practices it uncovered
The federal Department of As damages, Blue Cross and didnt violate marketers con-
Health and Human Ser- Blue Shield of North Carolina is tracts with ad agencies, they
vices announced last fall that seeking the amount it says it is were worrisome because the
insurers initially would receive owed for 2014 under the risk-
only 12.6% of the money they corridor program, which is
claimed under the risk-corridor more than $147 million, minus
The trade group was
program for 2014, its first year the amount it has been paid so said to have cited
of operation, though federal far, which is about $18 million.
officials said the insurers The North Carolina insurer
concerns about
would get more later. The pro- also wants the court to force undisclosed rebates.
gram was supposed to bolster the U.S. to make risk-corridor
eral fronts. Blue Cross Blue insurers suffering losses by us- payments when they are due
Shield insurers such as the ing payments from other insur- for later years. The insurer esti- advertisers were unaware of
North Carolina nonprofit and ers that did relatively well on mates that it will be owed more them. It said the problematic
Pittsburgh-based Highmark the new ACA business. How- than $175 million for 2015. The practices extended beyond
are backbones of the laws in- ever, the amount owed was far suit says federal plans to back- digital advertising to televi-
surance marketplaces, with the greater than the sum collected. fill the payments owed for 2014 sion, print and outdoor adver-
largest enrollments in many According to the suit, federal over time is contrary to the tising, according to the people
states exchanges. But many of officials initially signaled that nature, purpose, intent and lan- familiar with the matter.
them have run up significant payments would be made even guage in the health law. The American Association
of Advertising Agencies, which
represents ad agencies, said,
We cannot at this time com-
ment on anonymous sources.
We have not seen the study,
have always preached full
mature. Pepsi-Cola failed to transparency to our members,
supplant Coke, which regained and will act accordingly when
market share in the following the details are released.
years, and today Pepsi remains The ad industry is domi-
a distant No. 2. Two launches nated by a handful of ad gi-
for which Mr. Enrico had high ants, including WPP PLC, Om-
hopesPepsi One to challenge nicom Group Inc., Publicis
Diet Coke and Slice to go after Groupe SA, Interpublic Group
Sprite and 7-Upmeanwhile of Cos., Dentsu Inc., and Ha-
fizzled. vas SA. Collectively they con-
Mr. Enrico would go on to trol hundreds of billions of
run beverages globally and dollars a year that companies
world-wide food operations, spend on marketing.
before becoming CEO and A spokeswoman for Publicis
chairman of PepsiCo in 1996. declined to comment, saying it
G. PAUL BURNETT/ASSOCIATED PRESS
Under his leadership, the Pur- hadnt seen the report.
chase, N.Y.-based company We comply with all regula-
spun off the Taco Bell, KFC tions in the U.S., and we do
and Pizza Hut restaurant chains not accept rebates in the
in 1997 and acquired the Tropi- United States, said Colin Kin-
cana juice brand for $3.3 billion sella, chief executive of Havas
from Seagram Co. the following Media North America.
year. In 2000, he sealed a $13.4 WPPs GroupM declined to
billion deal to buy Quaker Oats comment on anonymous and
Co., including the Gatorade unspecific allegations, adding
sports drink brand. that we have always main-
Pepsi-Cola USA in 1983 at the ening to unseat its decades- He stepped down from Pep- tained that if individual clients
age of 38. The same year he old rival. An unsettled Coke siCo in 2001 at the age of 56, have questions of us they
struck a multimillion-dollar replaced its flagship cola with retiring in Dallas. should contact us directly.
marketing deal with pop sensa- New Coke, using comedian Bill He was soon recruited by We do not accept non-
tion Mr. Jackson to become the Cosby as a pitchman. DreamWorks Animation Chief isclosed rebates, and we be-
face of the brandand head- After 87 years of going at Executive Jeffrey Katzenberg lieve our existing process as it
line news in 1984 when the it eyeball to eyeball, the other to become chairman of the stands is robust and transpar-
singers hair caught fire while guy just blinked, PepsiCo movie production company. ent for our clients, said
filming a Pepsi TV commercial. crowed in a full-page ad Mr. Enrico held that position Dentsu Aegis Network.
Pepsi kept the pressure on splashed across U.S. newspa- from 2004 to 2012. Omnicom said that while
cola leader Coke by signing pers and penned by Mr. En- Although Mr. Enrico earned we have not seen ANAs study,
marketing deals with other ce- rico, who told Pepsi employees millions of dollars in bonuses it is disappointing to hear the
lebrities including singer Lio- to take a long weekend to cel- at PepsiCo, he received a base results are broad-based allega-
nel Richie and a Choice of a ebrate. annual salary of $1 in each of tions against the entire adver-
New Generation campaign Coke quickly backtracked his final four years at the com- tising media industry.
casting its rival as old and after longtime drinkers re- pany. At his request, the re- Interpublic said it will con-
stodgy. In one ad, a spaceship volted and brought back the mainder of his $900,000 sal- tinue to modernize our trans-
hovered over Pepsi and Coke original recipe, renaming it ary was redirected to parency practices as the in-
vending machines before lift- Classic Coca-Cola. scholarships for the children dustry evolves. In the U.S., it
ing the Pepsi machine. In an- Mr. Enrico, emboldened by of employees earning less than said, we do not partake in
other, archaeologists in the fu- Pepsis rising popularity, $60,000. volume rebates.
ture find a Coke bottle and agreed to a memoir that was Mr. Enrico is survived by The report isnt expected to
dont recognize it. published in 1986 and entitled, his wife, Rosemary, who he be- name individuals or specific
By 1985, Pepsi-Colas share The Other Guy BlinkedHow gan dating in high school, and companies that allegedly have
of the U.S. cola market was Pepsi Won the Cola Wars. their son Aaron and three received rebates, people famil-
approaching 30% and threat- The book title proved pre- grandchildren. iar with the matter said.
 B4 | Friday, June 3, 2016
HANNIBAL HANSCHKE/REUTERS
Huawei Technologies supplies telecommunications equipment such as base stations and antennas, and also sells wireless handsets.
U.S. Seeks Huaweis Exports Data
BY JURO OSAWA
The U.S. Commerce Depart-
ment has subpoenaed Huawei
Technologies Co. for informa-
tion on the Chinese telecom-
munications giants export and
re-export of technological
goods to Iran, North Korea
and other sanctioned nations,
a person with knowledge of
the matter said.
The subpoena is part of
Washingtons probe into
whether Huawei violated U.S.
export rules, the person said.
The U.S. has long prohibited
sales of goods containing more
than certain percentages of
U.S. technology to sanctioned
Oracle Shares Fall After Ex-Employee Files Suit
BY JAY GREENE
Oracle Corp. shares slid
4% Thursday after a former
senior finance manager
claimed in a lawsuit that the
software giant fired her after
she threatened to blow the
whistle on possibly unlawful
accounting practices in its
cloud-computing business. The
stock decline led to a class-ac-
tion suit filed on Thursday
that cited the earlier litigation.
Svetlana Blackburn, in a
suit filed Wednesday in federal
Deal Drought
Acquisitions in China giving
U.S. rms a controlling stake
have dwindled.
15 deals
U.S. investment stake:
More than 50%
Less than 50%
10
5
0
2011 12 13 14 15 16*
*Year to date
Source: Dealogic
THE WALL STREET JOURNAL.
Business
Watch
MCKESSON
Firm Weighs Options TAKATA
For Technology Unit Car Makers Recall
McKesson Corp. is weighing a More Vehicles in U.S.
separation of its information-tech-
nology unit as the health-care gi-
ant grapples with pricing pressure
in its core drug-distribution busi-
ness, people familiar with the mat-
ter said.
McKesson, which has a market
capitalization of more than $40 bil-
lion, is considering options for the
business that could include a sale
or a merger, the people said. It isnt
clear whether any deal would be
for the entire business and there
may not be one at all.
The business, known as Tech-
nology Solutions, provides soft-
ware, services and consulting to
hospitals, doctors offices and oth-
ers and helps customers reduce
costs and errors, McKessons web-
site says. It had $2.9 billion in sales
in the fiscal year that ended in
March and operating profit of $519
million. The unit is dwarfed in size
by McKessons drug-distribution
business, which had $188 billion of
sales in the fiscal year and operat-
ing profit of $3.6 billion, though its
margins are much higher.
Based on typical industry multi-
countries such as Iran, North
Korea, Syria, Sudan and Cuba.
The Commerce Department
hasnt accused Huawei of any
wrongdoing, the person added.
The probe, which was re-
ported earlier by The New
York Times, could create a
new source of tension between
Washington and Beijing. Hua-
weis telecom networking
equipment, such as base sta-
tions and antennas, has effec-
tively been banned in the U.S.
after a 2012 congressional re-
port recommended that U.S.
carriers avoid Huaweis gear,
citing concerns that it could
be used by Beijing to spy on
Americans. Huawei has repeat-
court in the Northern District
of California, alleges her fi-
nance job in Oracles cloud-
computing business came to
an abrupt end because she re-
sisted, refused to engage in
and threatened to blow the
whistle on accounting prac-
tices she reasonably believed
to be unlawful.
Ms. Blackburns superiors
instructed her to add millions
of dollars in accruals to finan-
cial reports, with no concrete or
foreseeable billing to support
the numbers, the suit said. The
RULES
Continued from page B1
ing by foreign companies. In
April, Chinese regulators
blocked Apple Inc.s iBook and
iMovie services.
New technologies have con-
nected the world more than
ever, but in something of a par-
adox they grow dissimilar be-
tween regions as governments
dictate local terms.
In Europe, websites such as
Google and Wikipedia diverge
from their U.S. versions as Eu-
ropean courts uphold individu-
als right to be forgotten. The to adopt secure and controlla-
same model of a smartphone
bought in India and Indonesia
likely will soon contain differ-
ples, the technology business could
be worth more than $5 billion in-
cluding any debt.
McKesson has already pared
the unit in recent years, chipping
away at revenue but also boosting
its profit margins.
Liz Hoffman, Dana
Cimilluca and Dana Mattioli
Car makers recalled more
than four million additional vehi-
cles in the U.S. with faulty
Takata Corp. air bags, capping
the first wave in an expansion of
the largest automotive safety
campaign in history.
General Motors Co. and Ford
Motor Co. each recalled roughly
1.9 million vehicles to replace
front passenger-side air bags, ac-
cording to filings Thursday with
the National Highway Traffic
Safety Administration.
The latest recalls affect air
bags that lack a drying agent to
prevent moisture from building, a
phenomenon cited as contribut-
ing to explosions.
GM released a statement dis-
puting the safety risk of the ve-
hicles being recalled, and said it
undertook the safety campaigns
to cooperate with car-safety reg-
ulators. Takata has expressed re-
gret over the safety defects and
pledged to cooperate with regu-
lators and auto makers on fixing
vehicles.
Mike Spector
TECHNOLOGY
edly denied such allegations.
Huawei still sells some of its
smartphones in the U.S., but
its presence has been minimal.
Asked about the matter, a
spokesman for the Commerce
Department said the agency
doesnt comment on continu-
ing investigations.
Huawei, along with Swe-
dens Ericsson, is one of the
worlds largest suppliers of
telecom networking gear. Over
the past few years, the Chi-
nese company has also been
growing rapidly as a handset
maker. In the first quarter,
Huawei was the worlds third-
largest smartphone maker,
with an 8.3% share by sales,
suit doesnt provide details on
data that Ms. Blackburn alleges
she was asked to manipulate.
Oracle denied the allegations.
We are confident that all our
cloud accounting is proper and
correct, said Oracle spokes-
woman Deborah Hellinger.
According to the suit, Ms.
Blackburn was a senior fi-
nance manager in Oracles
cloud-computing business. A
LinkedIn page appearing to
represent Ms. Blackburns ca-
reer notes the dates of her
employment there as having
ent components because of lo-
cal sourcing regulations.
After revelations by former
National Security Agency con-
tractor Edward Snowden about
U.S. government spying in 2013,
Chinese regulators have used
both carrots and sticks to push
foreign tech suppliers to local-
ize product development and
data.
New cybersecurity laws re-
quire technology companies to
store their data in China, sub-
mit to security checks and help
the government with decryp-
tion if requested.
Government agencies and
key industries have been urged
and innovate on top of it and
ble technologies, a term widely
interpreted to mean Chinese
products.
Exelon Will Close Two Nuclear Plants in Illinois
Exelon Corp. said Thursday
that it would retire two unprof-
itable nuclear plants in Illinois
after state lawmakers declined
to pass legislation that would
have helped keep them running.
The company, which owns
utilities serving Chicago, Philadel-
phia and Baltimore as well as
many power plants, said it would
shut down its plant in Clinton,
behind Samsung Electronics
Co.s 23% and Apple Inc.s 15%,
according to research firm
Gartner Inc.
The Commerce Department
in early March slapped trade
sanctions on Huaweis smaller
Chinese competitor, ZTE
Corp., alleging it had violated
rules by exporting American
technological goods to Iran
and other nations. The Depart-
ment in late March agreed to
lift the sanctions on a tempo-
rary basis as long as ZTE
stayed true to the commit-
ments it had made with the
U.S. government. ZTE has
since replaced three of its top
executives.
been between September 2014
and October 2015. Ms. Black-
burns attorney, Daniel Velton,
declined to comment.
Oracles shares fell to
$38.66 in trading in New York
on news of the suit.
Later on Thursday, Oracle
was hit with a class-action case
that cites Ms. Blackburns liti-
gation and says the stock drop
caused significant losses and
damages to class members. In
response, Oracle reiterated its
earlier statement that its ac-
counting practices are sound.
Companies also have been
prodded individually: Last
month after a visit from Apple
Chief Executive Tim Cook,
Chinas technology ministry
urged the iPhone maker to
deepen its local partnerships
and provide a more secure
user experience to Chinese
customers.
Qualcomm President Derek
Aberle said in a recent inter-
view in Beijing the companys
new China-controlled joint ven-
ture for server chips likely
would develop something very
specific to China in the secu-
rity area.
They can take our platform
tor nor the commerce ministry
provide those components that
wouldnt necessarily be coming
from us, he said.
Ill., in mid-2017 and Quad Cities
plant in Cordova, Ill., above, in
mid-2018. The plants lost $800
million in the past seven years.
The announcement under-
scores the impact that low
wholesale electricity prices are
having on owners of older
power plantsespecially nu-
clear facilities, many of which
are threatened with closure.
* ***** THE WALL STREET JOURNAL.
Tesla CEO Musk
Predicts an iCar
Entrepreneur expects
Apple to begin making
its first electric vehicle
as early as 2020
BY GREG BENSINGER
RANCHO PALOS VERDES,
Calif.Tesla Motors Inc.
Chief Executive Elon Musk
said he considers Apple Inc.
an eventual direct competitor
that could bring its own elec-
tric vehicles into production
as soon as 2020.
Apple will probably make a
good car and be successful,
Mr. Musk said at Vox Media
Inc.s Code Conference here on
Wednesday. They should have
embarked on [the car] project
sooner.
The Wall Street Journal re-
ported last fall that Apple was
developing an electric car
project and had assigned it a
2019 ship date, which can
mean the time when engineers
are expected to sign off on the
project, not deliver a product.
Apple hasnt confirmed it is
working on a car.
Its great [Apple is] doing
this, and I hope it works out,
Mr. Musk said to laughter in
the audience. He said the mar-
ket is big enough for multiple
competitors.
Apple declined to comment
on Mr. Musks remarks.
Mr. Musk said he expected
to compete with traditional
auto makers in electric vehi-
cles, and added Alphabet
Inc.s Google wasnt likely
to make cars itself, in favor of
licensing its technology to
others. Google executives have
said that is their strategy.
I dont think any of the develop a rocket that can be
[traditional] car companies
have made a great electric ve-
hicle, yet, he said.
Mr. Musk indicated he plans
to hold an event later this year
to discuss Teslas plans in au-
tonomous vehicles, but de-
clined to offer specifics.
He repeated that Tesla has
received about 400,000 preor-
ders for its Model 3 vehicle,
Qualcomm announced sev-
eral new investments in China
after it agreed to pay a roughly
$1 billion antitrust fine and re-
negotiate its licensing pacts
with Chinese companies.
Foreign-trade groups say
Chinas cybersecurity rules
make it difficult to do business
except through a Chinese com-
pany. More than 20 U.S. and in-
ternational associations signed
a letter to Chinas insurance
regulator Wednesday to protest
draft security rules with data
provisions and other require-
ments for the sector they said
would be an obstacle to trade.
Neither the insurance regula-
assist Chinas government in es-
responded to requests for com-
ment on the letter.
While big companies have
Prices for wholesale electric-
ity recently hit a 15-year low
and experts expect them to
rise too slowly to help genera-
tors much. Fifteen to 20 nu-
clear reactors are considered at
risk of premature closure in
the next five to 10 years, ac-
cording to the Nuclear Energy
Institute, a trade group.
Fitch Ratings said the Ex-
@wsjd | wsjd.com
KEVORK DJANSEZIAN/GETTY IMAGES
Elon Musk says there is room
for an Apple electric-car entry.
which is expected to sell at
prices starting at $35,000. Mr.
Musk expects to make half a
million cars by 2018 and 1 mil-
lion cars a year by 2020.
Mr. Musk said he expected
fully autonomous vehicles to
be technically possible within
two years, though regulators
would likely take an additional
year to approve broad use of
such autos.
Mr. Musk, who is founder
and chief executive of rocket
maker Space Exploration
Technologies Corp., reiterated
plans to send a rocket to Mars
as soon as 2018 and a manned
rocket to the red planet by as
soon as 2024, with arrival by
2025. He said he would an-
nounce more details at a space
conference in September.
He is planning to relaunch
one of the rockets that
he successfully landed after
takeoff within the next two
months. Mr. Musk is trying to
reused because, he said,
most of the cost of space
travel are the rockets them-
selves. He said his rockets cost
around $35 million each.
The 44-year-old entrepre-
neur said he hoped to die one
day on Mars.
If youre going to choose
where to die, then Mars is not
a bad choice, he said.
moved forward with joint ven-
tures, the obstacles have put a
damper on deals overall. The
number of investments where a
U.S. tech company acquired
more than 50% in a Chinese
company fell from 15 in 2011 to
only one in 2015, according to
research firm Dealogic.
To be sure, mistrust goes
both ways. Huawei Technolo-
gies Co., in particular, has been
virtually shut out of the U.S.
telecommunications sector af-
ter a U.S. congressional report
in 2012 suggested Beijing could
use the companys equipment
for spying.
Huawei has said it doesnt
pionage and has aligned itself
with U.S. companies on security
issues as it expands.
ANTONIO PEREZ/ASSOCIATED PRESS
elon decision may precipitate
other nuclear plant closures
for Exelon plants.
The Illinois legislature ad-
journed Tuesday without acting
on legislation that would have
rewarded nuclear plants and
other carbon-free generators
that help the state meet its
environmental goals.
Rebecca Smith
THE WALL STREET JOURNAL. Friday, June 3, 2016 | B5

CEO
Continued from page B1
pay on longer-term benchmarks.
Overall, median compensa-
tion for S&P 500 CEOs fell to
about $11 million in 2015 from
about $11.5 million in 2014, ac-
cording to the Journals analysis
of data from MyLogIQ. Last
years median shareholder re-
turn, including dividends, was
CEO PAY
Expedias Chief Is Highest-Paid,
Pay Masters
The 10 highest-paid CEOs of S&P 500 companies all received more than $36 million last year, compared with
an overall median of $11 million. Four ran companies that had negative shareholder returns ( )
But He Faces Tough Targets
The most highly compen- engineering at Brown University
Top 10 CEOs by 2015 pay sated chief executive in the S&P but switched to finance when
1,000% 500 is hardly a household he moved to New York.
Dara Khosrowshahi
name. His big break came when he
Expedia Dara Khosrowshahi, the chief was a junior executive at in-
Sandeep Mathrani of Expedia Inc. vaulted over vestment bank Allen & Co. Mr.
General Growth $95
800
some of the best-known bosses Dillers QVC shopping network
Properties million at some of the biggest compa- launched a hostile tender offer
$39 nies with a 2015 pay package for Paramount Communications
valued at as much as $94.6 mil- Inc. The bid ultimately failed,
CHANGE IN PAY FROM PREVIOUS YEAR

1.3% for companies in the analy- lion, according to a Wall Street but the young advisers number
600%
sis, compared with 18% the year Journal analysis. crunching impressed Mr. Diller,
before. His pay, which included whose company he joined in
The top paid chief in the long-term stock options valued 1998.
Journals analysis was Dara at $90.8 million, is double the IAC, then called USA Net-
Khosrowshahi of internet travel 400% annual CEO pay packages at works, named Mr. Khosrow-
Mark Hurd,
company Expedia Inc. The 47- blue chips such as Walt Disney shahi chief financial officer in
Safra Catz
year-old executive received Oracle co-CEOs Omar Ishrak Co. and nine times what Tim 2002. A series of stumbles in
compensation of $94.6 million Brian Roberts $53 each Medtronic Cook got last year for running the web conglomerates travel
last year, including $90.8 million 200% Leslie Comcast $40 Apple Inc. division allowed him to take
in stock options that vest over Philippe Dauman Moonves $36 The 47-year-old Mr. Khos- over as its CEO. IAC spun off
the next four years. That Viacom CBS rowshahis compensation isnt a Expedia in 2005.
Leonard Schleifer
marked a sharp increase from $54 $57 Regeneron typical one-year package. It re- Mr. Khosrowshahi had little
the $9.6 million he made in 0 $48 flects a multiyear contract re-

2014, and was nine times what
Apple Inc. paid Timothy Cook
last year.
Expedia, which is controlled
by billionaire Barry Diller, said
the award is designed to keep its
leader in the job over the long
term. We have no intention of
providing additional equity until
2020, said Expedia spokes-
woman Sarah Gavin.
Mr. Khosrowshahi was fol-
lowed by two chief executives in
media mogul Sumner Redstones
empire: Leslie Moonves of CBS
Corp., at $56.8 million, and Phi-
lippe Dauman of Viacom Inc., at
$54.2 million. A power struggle
at Viacom could imperil Mr.
Daumans position.
Both CBS and Viacom lagged
behind the median return for
S&P 500 media companies,
which was minus 3.8% last year.
Shareholder return was minus
13.8% for CBS, and minus 42%
for Viacom. In its proxy, Viacom
says that about $17 million of
Mr. Daumans pay is a stock-
based bonus that vests over
XWSJ PROMOTIONX
S&P 500 median pay
200% $11
40% 20% 0 20%
2015 TOTAL SHAREHOLDER RETURN
Sources: MyLogIQ; Factset (shareholder returns)
three years, awarded with the pharmaceutical and biotech
nearly four-year renewal of his chiefs, at $18 million. Banks
employment agreement in Janu- ranked last, at $8 million.
ary 2015; it can become more or The Journal analyzed CEO
less valuable with company per- compensation and performance
formance. A CBS spokesman de- data for S&P 500 companies
clined to comment. that disclosed pay details be-
Rounding out the top five tween July 1, 2015, and May 31.
were Mark Hurd and Safra Catz, Some high-profile chiefs were
the co-CEOs at software giant omitted, along with others at
Oracle Corp., who received smaller companies who make
$53.2 million apiece last year. significant sums. For example,
Their pay included one-time eq- Google Inc.s Sundar Pichai re-
uity awards of $9 million each, ceived $100.5 million in 2015,
reflecting their expanded duties but he runs a unit of S&P 500
as co-CEOs, Oracle said in its member Alphabet Inc., which
proxy. In November, in a non- paid CEO Larry Page $1 last
binding vote, investors rejected year.
the companys pay practices for Restricted shares made up
the fourth straight year. An Ora- nearly half of last years CEO
cle spokeswoman declined to pay, and equity of any kind
comment. made up 63% of pay, compared
Media CEOs often rank with an average of about 57%
among the highest paid, and in over the past five years.
Robert Iger
Walt Disney
$45 40% 60%
THE WALL STREET JOURNAL.
its industry.
The jump came in part be-
cause Mr. Lautenbach received
the payout from a three-year
cash incentive program. He was
paid less than targeted for the
portion of his 2015 compensa-
tion tied to the years perfor-
mance, and most of his pay de-
pends on three-year measures,
said spokesman Bill Hughes.
Our performance over the last
three years was strong.
Continuing a recent pattern,
the S&P 500s roughly two
dozen female CEOs made more
than their male counterparts,
with median pay of $14.8 mil-
lion. After Ms. Catz, the highest-
paid women were Yahoo Inc.s
Marissa Mayer, at $36 million,
and General Motors Co.s Mary
Barra, at $29 million. Yahoos
proxy notes that some of Ms.
newal and pegs much of his pay
to future performance, with op-
tions that vest over five years.
What hes actually earned
for the year is very small, said
media mogul Barry Diller, who
serves as Expedias chairman
and controls the companys vot-
ing shares. His options are
priced so much higher than the
current stock price that reach-
ing their strike prices would
create billions of dollars of
value for shareholders, said Mr.
Diller.
Some of Mr. Khosrowshahi
options would pay out if Expe-
dias stock, which currently
trades around $111 a share, hits
$170 by 2020. An Expedia
spokeswoman said the package
was part of a contract renewal
and the company has no plans
to award him more equity until
2020. In 2014, his compensation
totaled $9.6 million.
Mr. Khosrowshahi has run
the Bellevue, Wash., company
since it was spun out of Mr.
Dillers IAC/InterActiveCorp in
2005. Born in Tehran, he moved
to New York state after the Ira-
$94.6M
Approximate value of the pay
package in 2015 for Expedia
CEO Dara Khosrowshahi.
operational experience before
he started running IACs travel
websites. Still, the move fit
with IACs custom of promoting
internal candidates to high-level
jobs, rather than hiring from
outside.
Expedia was going through
all sorts of convulsions, and he
had an enormously difficult few
years, Mr. Diller said in an inter-
view. But like many people who
were dropped in a difficult situa-
tion and dont know how to
swim, he did tremendously well.
Mr. Khosrowshahi has spent
the past decade acquiring a col-
lection of travel brands that
now includes HomeAway, Orbitz
and Travelocity.
Last year, Expedia had a to-
tal shareholder return of 47%,
compared with a median return
of 18.2% gain for software and

WSJ

Join reporters Joann S. Lublin and
Theo Francis for a live discussion
of CEO pay and their data analysis.
See: WSJplus.com/ceo-pay
2015 accounted for four of the Others received big raises Mayers 2015 equity awards nian Revolution made it unsafe services companies overall. The
top 10 spots. Median pay for even as shareholders suffered. failed to vest because of the for his family, which ran several former M&A analyst said he has
media CEOs was the highest of Pitney Bowes Inc. CEO Marc companys poor performance. manufacturing businesses, to thrived at Expedia partly be-
any industry group, at $26.2 Lautenbachs compensation rose Ms. Barras pay jumped 77% return from a vacation that cause of Mr. Dillers willingness
million last year, more than dou- 55% to $10.8 million. The mail- largely because of a one-time happened to coincide with the to support long-term bets that
ble the S&P 500 median. ing-services company had a option grant valued at $11.2 mil- coup. We understood that we might be unpopular with the
Auto and auto-parts CEOs shareholder return of minus lion. A spokesman said Ms. were incredibly lucky to be in market. He protects me where
had the second-highest median 12.2%, trailing a median share- Barras package aligns her inter- the U.S., he said. I need it, he said.
pay, at $19.3 million, followed by holder return of minus 0.7% for ests with those of shareholders. Mr. Khosrowshahi studied Drew FitzGerald

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Taking Stockholm Alone with Our Computers Salute to the Chevy SS An Income for All
The Swedish capital has put itself back A quarter of Americans say they feel A unique and heavily muscled sedan Replacing the welfare state with a
front and center of Scandinavian travel deeply lonely. Recent research suggests will soon be fading into extinction. universal basic income is the best way
destinations. A wave of private museum that face-to-face contact, not social Dan Neil sings its farewell praises. to cope with a radically changing U.S.
launches and new restaurant openings media, is the key to alleviating the Credit: Chevrolet labor market and to revitalize civil
and a jolt of energy in out-of-the-way problem, writes Susan Pinker. society, argues Charles Murray.
neighborhoods have helped give the Credit: iStock
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city new-found fun. We map out the
ultimate long weekend.
Credit: Felix Odell for The Wall Street Journal
B6 | Friday, June 3, 2016 * ***** THE WALL STREET JOURNAL.

BUSINESS NEWS

Questions Dog Nestl on Agility AB InBev,

Starbucks
CEO Paul Bulcke says
Swiss company, on its
150th anniversary, is
Join Forces
still best in class To Sell Tea
After 150 years, Nestl SA BY TRIPP MICKLE
is showing its age. AND JULIE JARGON
Nestl turned in years of
strong performance after The countrys biggest beer
2000, emerging from the and coffee makers are coming
global financial crisis as a ha- together over tea.
ven for global investors. But Anheuser-Busch InBev NV
and Starbucks Corp. on Thurs-
By Brian Blackstone in day announced an agreement
Vevey, Switzerland for the brewer to produce,
And Saabira bottle and distribute a ready-
LAURENT GILLIERON/EUROPEAN PRESSPHOTO AGENCY

Chaudhuri in London to-drink line of Starbucks

Teavana brand tea in the U.S.
the Swiss companys status as The move will help Star-
the gold standard for con- bucks broaden its reach be-
sumer staples has faded more yond coffee, a push the com-
recently as its stock has pany has been making in
treaded water. recent years in an effort to
For the last three years, find new avenues of growth.
theyve been affected by a lit- It will help AB InBev fill ca-
tle less innovation, said Jon pacity at breweries while its
Cox, head of European con- U.S. beer volumes are falling
sumer equities at Kepler Cheu- and give its network of more
vreux in Zurich. than 500 distributors a nonal-
Nestls sales have been coholic beverage to sell.
hurt by the strong Swiss franc, CEO Paul Bulcke rejected concerns that Nestl has lost its edge. There are certain challenges. Were not alone to have them. Ready-to-drink tea is one of
slowdowns in major markets the fastest-growing beverage
like China and Europe and de- worry it isnt moving quickly spiral somewhere of negativ- competitors. Among investors the Belgium-born Mr. Bulcke categories in the U.S., with
flationary forces that have enough. ism. Somewhere the investor main concerns is that Nestl has focused his efforts on ex- consumption rising by 6.1% in
made it hard to raise prices. A company like Nestl will seminar was able to say, Lets hasnt cut costs fast enough, is panding the companys nutri- 2015, according to data service
Its recall of Indian noodle likely never collapse, but it show what we actually do. bound to an unrealistic growth tion-and-health-sciences arm, Beverage Marketing Corp.
brand Maggi and subpar re- may suffer a slow slide to me- Lets de-emotionalize the dis- target and has been too insu- a business both investors and We see an amazing oppor-
sults for a Chinese brand of diocrity, said Bernstein ana- cussion. lar in choosing top executives employees believe could be a tunity for tea, said AB InBev
peanut-flavored drinks and lyst Andrew Wood, in a recent Henri Nestl launched his from its own ranks. game changer. He has also jet- Chief Executive Carlos Brito,
canned rice porridge added to note. In an interview Thurs- eponymous baby-formula com- One frequent criticism: Af- tisoned certain slower-grow- who was joined in St. Louis by
Nestls woes. day, Nestl Chief Executive pany in 1867, then merged it in ter so much focus on acquisi- ing businesses and improved Starbucks Chief Executive
The company marked its Paul Bulcke rejected concerns 1905 with Anglo-Swiss Con- tions, it hasnt been innovative Nestls free cash flow, which Howard Schultz for a media
150th anniversary Thursday that Nestl has lost its edge. I densed Milk Co., founded by enough. A Bernstein survey of rose to 11.2% of sales in 2015 call. Mr. Brito said Starbucks
near its headquarters in Vevey, think were still best in class, American brothers Charles 75 Nestl investors published from 4.5% in 2008. stores would develop new tea
along Lake Geneva. But the Mr. Bulcke said. There are and George Page in 1866. To- in April found that negative Despite all this, company flavors, and AB InBev would
challenge for executives is to certain challenges. Were not days company considers that comments about the company has missed its sales target of produce those flavors at one
convince investors that a con- alone to have them. its founding year. had risen to 63% from 48% six organic growth of 5% to 6% of its dozen U.S. breweries for
sumer giant with a market Indeed, some analysts are The companys reach ex- years ago. Sales growth has dubbed the Nestl Model sale across some 300,000 con-
capitalization of $236 billion encouraged by the companys tends through 189 countries, slowed under the leadership of for three years running, rais- venience stores and supermar-
is nimble enough to fight off recent steps, particularly a from developed economies to Mr. Bulcke, a 61-year-old ing questions about its long- kets. Mr. Schultz said he and
competitors and swiftly put cost-cutting program outlined emerging-market behemoths Nestl lifer who took the com- term growth prospects. Mr. Brito began discussing the
new products on shelves. at an investor conference last such as India and China, and it panys reins in 2008 and is Mr. Bulcke stands by this opportunity to work together
Nestl, like its rivals, has month, and new products such employs 335,000 people. considered a front-runner to model, calling it an ambi- on tea several months ago.
been reformulating products as gluten-free cornflakes. I Nestls range of businesses succeed Chairman Peter Bra- tion. Still, the numerical Starbucks has had a joint
to strip out artificial ingredi- came away from that event brings stability. But critics say beck, who retires next year. benchmark makes it easier for venture with PepsiCo Inc.
ents, cut sugar and salt, and more optimistic, said Mr. Cox. it has left the company Mr. Brabeck said in a investors to overlook positive since 1994 to produce and sell
introduce functional benefits There was a little bit of stretched too thin at a time Thursday interview that Mr. trends like rising cash genera- ready-to-drink coffee, but
in response to a rising demand OK, Nestl, youre failing, when technology has made it Bulcke is one of the candidates tion. couldnt work with PepsiCo on
by consumers for health food Mr. Bulcke said. I didnt see vulnerable to competition to succeed him. The companys shares are tea because the soda and
with clear origins. But some that, but then you get into a from smaller, nimbler local Over the past eight years, down 1.5% so far this year. snack company already has a
joint venture with Unilever
PLC for the Lipton, Pure Leaf

Wal-Mart Joins With Uber, Lyft to Test Delivery Service and Brisk brands.
Starbucks in 2012 bought
Atlanta-based tea retailer
BY SARAH NASSAUER Mart spokesman said. Under the pilot program start small and let our cus- pabilities to stores, a service Teavana Holdings Inc. for
Last-mile delivery has with Uber and Lyft, a shopper tomers guide us, but testing executives say leverages its $620 million in cash, its big-
Wal-Mart Stores Inc. will proved a hotly contested bat- can place a grocery order on- new things like last-mile deliv- 4,600 U.S. locations as an ad- gest-ever acquisition. Mr.
test a grocery-delivery service tleground. Dozens of startups line and then Wal-Mart em- ery allow us to better evaluate vantage over pure online re- Schultz at the time said his
with Uber Technologies Inc. like Instacart Inc. and Door- ployees will select the mer- the various ways we can best tailers. company would try to bring a
and Lyft Inc., part of the re- Dash Inc., the U.S. Postal Ser- chandise and package the serve our customers, said Mi- But recent Wal-Mart moves Starbucks-like experience to
tailers growing efforts to vice, Uber and Amazon are all order. chael Bender, chief operating show that it also hopes to Teavana, a mall retailer that
compete head on with Ama- vying for accounts with retail- Wal-Mart will then hail an officer of Walmart Global compete head on with Amazon sold most of its tea in loose-
zon.com Inc. ers, restaurants and grocery Uber or Lyft driver to pick up eCommerce. to offer speedy delivery to leaf form for home consump-
Chief Executive Doug Mc- stores to bring goods to peo- the order and deliver it to the Based in Bentonville, Ark., peoples homes. tion. The coffee maker said its
Millon is expected to discuss ples homes. customers location. The deliv- the company is spending $2 It has begun working with U.S. locations have sold more
the pilot project with the rival Wal-Mart has also started ery will cost $7 to $10, and billion over two years to boost more regional delivery firms than $1 billion worth of hand-
ride-hailing companies at the testing a similar service at its customers will pay Wal-Mart, e-commerce sales and fend off to make home delivery more crafted Teavana tea beverages
retailers annual shareholder warehouse chain Sams Club in not the drivers. Amazon, which has been ex- efficient and started testing a over the past year, represent-
meeting on Friday. The gro- Miami using Deliv Inc., a Wal-Mart declined to com- panding its own grocery-deliv- membership program that ing 11% growth in year-over-
cery delivery service will be startup that handles same-day ment on why it is working ery service, AmazonFresh. touts two-day delivery similar year sales. Starbucks has in-
available later this month in deliveries for Kohls Corp., with rival delivery companies Wal-Mart has focused on to Amazons popular Prime creasingly been moving into
Denver and Phoenix, a Wal- Macys Inc. and other retailers. for the grocery test. Well adding online order-pickup ca- program. packaged products.

Weather The WSJ Daily Crossword | Edited by Mike Shenk

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8 Money,
U.S. Forecasts City
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Tokyo 74 66 s 78 65 pc S E V E N T I M E H I S
Minneapolis 77 60 t 70 57 sh Buenos Aires 56 39 pc 52 42 r by 11:59 p.m. Eastern Time Sunday, June 5. A solver selected at random O R A L I C Y C H A T U P
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 REGULATION C2 | MARKETS DIGEST C5 | BIGGEST 1,000 STOCKS C7

Mario Draghis
Booster Shot Waiting Game
HEARD ON
Health-care stocks lift Dow 49 points FINANCE | C3 THE STREET | C8
2016 Dow Jones & Company. All Rights Reserved. * * * * THE WALL STREET JOURNAL. Friday, June 3, 2016 | C1
DJIA 17838.56 48.89 0.27% S&P 2105.26 0.28% NASDAQ 4971.36 0.39% 10YR. TREAS. 10/32, yield 1.811% OIL $49.17 $0.16 EURO $1.1153 YEN 108.87 See more at WSJMarkets.com

Dimon: Watch Out for Car Loans Holding Pattern

Nymex crude-oil futures
$55 a barrel
Thursday
J.P. Morgan head says largest bank by assets said healthy by historic standards firm Experian. That was fueled lenders collateral when bor-
50 $49.17
that the $1 trillion auto-loan but behind the pace set last by the growth in car sales in rowers default.
possible defaults pose market, which has grown year. recent years as well as loosen- The volume of car loans
market risk; Someone along with the economy, fall- The J.P. Morgan executive ing underwriting standards held by subprime consumers 45
ing unemployment and a re- said he doesnt think concerns that have made it easier for increased by 11% in the first
is going to get hurt cent decline in gasoline prices, about auto lending are a sys- subprime borrowers to get fi- quarter compared with the 40
may not remain a bright spot temic issue given the size of nancing. same period a year before,
BY EMILY GLAZER for long. the auto-loan market, which is Mr. Dimon said that while outpacing the 9% increase for 35
AND ANNAMARIA ANDRIOTIS Someone is going to get about 12% the size of the $8.4 he doesnt see an auto-market customers with high credit
hurt, he said. It wont be us. trillion mortgage market as of downturn as imminent, he scores, according to Experian. 30
J.P. Morgan Chase & Co. Mr. Dimons concerns, the first quarter, according the does see increased risk due to With more and more con-
Chief Executive James Dimon noted at a financial-industry Federal Reserve Bank of New higher default rates from in- sumers relying on financing, it
25
on Thursday called the auto- conference in New York, fol- York. creased subprime lending, the is important for lenders to
lending market a little lowed new data this week that Auto-loan balances sur- growing use of longer repay- keep a close eye on delin- J F M A M J
stretched, the latest warning showed U.S. auto sales passed $1 trillion in the first ment periods for borrowers quency trends to ensure the Source: WSJ Market Data Group
about a part of the economy slumped in May. quarter, a record, growing 11% and the potential for used-car market remains healthy, Me- THE WALL STREET JOURNAL.
that has boomed this decade. The seasonally adjusted an- from the year-earlier period, prices to drop in coming years, linda Zabritski, senior director OPEC broke off its meeting
The head of the nations nual sales rate still was according to credit-reporting which could hurt the value of Please see DIMON page C3 without a production pact.

Masters Negative
Of a Much Yielding
Shrunken Debt at
Universe Dont Buy
BY JOHN CARNEY New High
For a glimpse of the future
of investment banking, just
Bank BY BEN EISEN
look at the recruiting section
of J.P. Morgan Chase & Co.s
website.
It lists 123 positions open in
Breakup Hype The amount of global sover-
eign debt with negative yields
surpassed $10 trillion for the
sales, trading and research BY DAVID REILLY first time in May, according to
world-wideand only 30 in Fitch Ratings.
New York City. But there are Break up the big banks? Dont count on it. The measure stood at $10.4
more than 2,000 Sure, talk of smashing the biggest U.S. banks into pieces trillion on May 31, up 5% from
WHAT IS postings in tech- seemingly has an air of inevitability around it. Politicians on $9.9 trillion on April 25, when
A BANK? nology. One re- both sides of the aisle are anti-big-bank. There is no love the rating agency last measured
cent position, lost for them on Main Street. And even the the amount, according to a
with a unit J.P. ANALYSIS stock market, which could be the final arbiter Thursday report. It is spread
Morgan calls its Blockchain of their fates, is saying some behemoths are across 14 countries, with Japan
Center of Excellence, invites worth more dead than alive. by far the largest source of neg-
applicants to send their re- The Wall Street Journal has laid out many of the chal- ative-yielding bonds. Of the to-
sume, LinkedIn profile and/or INSIDE ON C4: lenges facing the industry in a series of articles this week. tal, $7.3 trillion was long-term
twitter handle. Perspectives on Banking But the biggest banks may be in better shape than many in- debt and $3.1 trillion was short-
Wall Street is on the cusp  Sheila C. Bair vestors and others realize. As well, breaking up the banks term debt.
of radical change. Again.  Richard K. Davis doesnt have to be an all-or-nothing proposition, even if that The amount of debt with
Fifty years ago, investment  Sen. Sherrod Brown makes for better campaign-trail sound bites. Individual per- yields below zero has increased
banks were mostly private  And others formance matters; they arent likely to go extinct as a group, sharply this year as global cen-
partnerships specializing in even if they do get smaller. tral banks have instituted un-
particular markets and finan- Please see BANKS on C2 conventional policy measures,
cial products. Beginning with ILLUSTRATION BY EMILY COOPER FOR THE WALL STREET JOURNAL such as negative interest rates.
Merrill Lynch in 1971, they The Bank of Japan in January
transformed themselves into surprised markets by driving its
the publicly traded behemoths rates below zero, pushing Japa-
we know today, pushed by funding and capital allocation gists instead of traders. In- biggest investment banks in funds, pension funds, sover- nese government-bond yields
market pressure, technological will shift from banks to giant stead of mastering the 2015 was just 6%, according to eign-wealth funds and hedge sharply lower.
progress, personal ambition asset managers, pension funds universe, they will seek to a recent report from the Bos- funds that make up that Banks in the euro currency
and regulatory change. and sovereign-wealth funds. dominate smaller domains. ton Consulting Group, well be- world. bloc have also increased de-
Those same forces once Pressure on margins will The path to sustainable low their presumed cost of As assets under manage- mand for government debt to
again are reshaping invest- persist, forcing investment double-digit returns will re- capital. This isnt a passing ment rise toward $100 trillion meet regulatory requirements,
ment banking. Of course, no banks to unbundle offerings quire radical changes to the wave of underperformance. by 2020, according to the Bos- another factor weighing on
one can say precisely how, but and start charging for services business, a managing director The center of power in fi- ton Consulting Groups fore- yields, Fitch said.
here are some likely outcomes: like research and pricing data at a large investment bank nance has shifted to the buy cast, the buy side will replace Higher amounts of Japanese
Trading will migrate to that they used to give away to said. sidethose that purchase banks as the source of funding and Italian sovereign securities
hedge funds. Jobs in the back win business. There is little doubt that servicesand investment for deals and underwriting. with sub-zero yields were the
office and stock-research de- In short, investment banks the old business model has banks will have to rethink This goes beyond asset biggest contributors to the
partments will be done by ma- will be smaller, more special- broken down. The collective their relationships with the managers buying loans made monthly changes, said Fitch an-
chines. The heavy lifting of ized and home to technolo- return on equity of the worlds asset managers, private-equity Please see MASTERS page C2 alysts, led by Robert Grossman.

U.S. Jobs No Cause for Alarm

BY JUSTIN LAHART August 2011, when 45,000
Picket Lines Verizon workers struck, ac-
Jobs figures in the mirror Employees on strike during Labor cording to the Labor Depart-
may be better than they ap- Departments jobs survey period ment.
pear. Moreover, April may have
The Labor Department 40,000 been a stronger month for
will release the May employ- employment than the last job
30,000
ment report reports payroll figure im-
MAGALI GIRARDIN/EUROPEAN PRESSPHOTO AGENCY

AHEAD OF Friday, and it 20,000 plied. Other aspects of the

THE TAPE looks as if the report, including an increase
weakness in 10,000 in average weekly hours and
April persisted. pickup in average hourly
Economists estimate the U.S. 0 0 0 0 earnings, indicated employ-
added 158,000 jobs last 2015 16 ers were hardly pulling back.
monthclose to Aprils Note: Includes only strikes A model developed by
160,000 and far enough be- of 1,000 workers or more Johns Hopkins University
low the previous 12 months Source: Labor Department economist Jonathan Wright
average of 232,000 to draw suggested 69,000 new jobs
notice. growing at about double the were pulled into previous
Taken at face value, an- rate of population growth months as the result of a
other month with fewer than something that can only go warm winter.
200,000 jobs gained would on for so long. Even knowing these A huge poster in Geneva in May asked: What would you do if your income were taken care of?
suggest the labor market has But there is a big strike things, a soft jobs number
shifted into lower gear. There
is an argument that is some-
thing that should happen.
against reading too much
into any weakness in the
May job numbers. About
may provide Federal Reserve
policy makers with another
excuse to refrain from rais-
Making Allowances? Swiss to Vote
The economy grew slowly 35,000 Verizon Communica- ing rates at their meeting BY BRIAN BLACKSTONE whether or not they work and The idea has percolated in
in the first quarter, after all, tions workers who walked later this month. If, on the whether or not they need it. academic circles for decades
and profits were weak. So it off their jobs werent at work other hand, jobs bounced ZURICHEven in a topsy- Though the monthly and found its way to the ballot
would make sense for com- during the period from which back despite the May drags, turvy world where govern- amount isnt spelled out, it is via a grass-roots campaign
panies to ease back on hir- the Labor Department draws their decision will be a lot ments are getting paid to bor- expected to be around 2,500 that gathered the required
ing. And even absent such its figures. That counts as harder. row money, the issue on the francs ($2,530) per adult, with number of signatures under
concerns, there is the fact the most people on strike ballot this weekend in Swit- a smaller subsidy for children, Switzerlands generous refer-
that the job market has been during a survey period since Email: tape@wsj.com zerland stands out. without regard to employ- endum laws.
A referendum slated for ment, education, disability, The question isnt whether
INDEX Commodities.................................................... C6 Dividend News............................................... C8 Global Finance................................................. C3 Mutual Funds........................................... C6 Sunday proposes to pay all age or even wealth. An unem- it might winit wont. The
Bond Tables............................................... C6 Credit Markets................................................ C6 Exchange-Traded Funds......................... C8 Heard on the Street................................... C8 New Highs & Lows............................... C7 residents a minimum monthly ployed person would get it. So Basic Income Initiative is op-
Cash Prices................................................. C6 Currency Trading.......................................... C5 Finance Watch................................................ C3 Money Rates.................................................... C7 Stock Listings........................................... C7
allowance, no questions asked, would a billionaire. Please see SWISS page C3
C2 | Friday, June 3, 2016
Lawsuit Targets Retirement-Advice Rule
Trade groups fight
Labor Departments
rollout of tougher
standard for brokers
BY ANDREW ACKERMAN
WASHINGTONA coalition
of financial and business trade
groups filed a lawsuit Thurs-
day to try to strike down an
Obama administration rule
that would shake up the way
Americans receive retirement-
savings advice.
The plaintiffs include the
U.S. Chamber of Commerce
and associations representing
the countrys biggest financial
institutions, including the Fi-
nancial Services Roundtable
and the Securities Industry
and Financial Markets Asso-
ciation. They filed their suit in
a federal court in Dallas.
At issue is a rule rolled out
by the Labor Department in
April that requires finan-
BANKS
Continued from the prior page
For starters, the biggest
U.S. banks increasingly look
like they will be the last folks
standing on the global stage.
Consider that the worlds two
biggest banks by market value
are Wells Fargo and J.P. Mor-
gan Chase, respectively. Or
that the combined market
value of Deutsche Bank, Bar-
clays, Banco Santander, Uni-
Credit and BNP Paribas is
less than that of J.P. Morgan.
And while J.P. Morgan chief
James Dimon repeatedly
warns the biggest competitive
banking threat in coming
years will emanate from
China, the market value of
that countrys biggest bank
has slid below that of J.P. Mor-
gan over the past year. That
has happened as Chinas econ-
omy has slowed and questions
have arisen about how badly
Chinese banks could be hurt
by bad loans.
Granted, market value isnt
everything. But it does signal
J.P. Morgan has the financial
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cial brokers working on retire-
ment accounts to act as fidu-
ciaries who operate in the
best interest of clients, a
change that would transform
the way the $14 trillion market
for such financial products are
sold and advice is given. Previ-
ously, brokers were required to
give suitable guidance, a
looser standard.
The groups say the Labor
Department crafted an unduly
complex rule that will make
advice too costly for many
smaller savers.
It creates miles of red tape Labor Secretary Tom Perez defended the rule in a statement.
that will make it more difficult
for retirement advice to be clients best interests. He also
provided to modest-income said that the conflict of inter-
savers, said Tim Pawlenty, the est rule is built upon solid
head of the Financial Services statutory and legal founda-
Roundtable and former Repub- tions, and we will defend it
lican governor of Minnesota. vigorously.
Labor Secretary Tom Perez As previously reported by
said in a written statement The Wall Street Journal, the
that the lawsuit is the product groups are targeting the pri-
of a small, vocal minority of mary means of enforcing the
firms seeking to put their heightened retirement-advice
own interests ahead of their standards: a provision that al-
wherewithal in the markets
eyes to compete more aggres-
sively for multinational busi-
ness. At the same time, rivals
are being forced to pull back
into their domestic shells. In-
vestors can count on Mr. Di-
mon to press any advantage
on this front.
Meanwhile, Citigroup and
Bank of America remain siz-
JEAN-CHRISTOPHE BOTT/EUROPEAN PRESSPHOTO AGENCY
able. With $100-billion-plus
market values, they dwarf
most European banks and are
bigger than HSBC.
What, though, of valua-
tions? The market recognizes
that Wells Fargo earns its cost
of capital and so it trades at a
premium to book value. J.P.
Morgan trades around book,
reflecting its struggles to gen-
erate returns well above 10%.
BofA and Citi, though, trade at
sharp discounts to book, un-
derscoring feeble returns.
In those latter two cases,
the market is saying a breakup could be a market bottom.
would create value. Dont ex- The test for both will more
pect quick action, though. likely come in a few years. If
To push a breakup now, and when interest rates get to
with interest rates at current more normal levels, both
superlow levels and trading banks will have to show
volumes pinched, would be the beefed up returns. Otherwise,
equivalent of selling at what shareholders may rebel.
Even then, though, any ac-
tion is more likely to focus
first on their respective chief
C U S T O M E R R AT E D executives. So Brian Moynihan
and Michael Corbat will prob-
ably be in the firing line be-
fore their firms are.
In that sense, the banks at
least seem to have time on
their side. And Citi has some-
thing else going for it, too:
With nearly $50 billion in de-
ferred-tax assets, the bank
needs heft if it is to ever gen-
erate enough profits to use
what are essentially IOUs
against future tax bills. So a
breakup would be akin to
shareholders cutting off their
nose to spite their face.
J.P. Morgan has something
else to fall back on: perfor-
mance. Since Mr. Dimon took
over as chief at the end of
2005, the banks cumulative
total return, which includes
dividends, is about 5 percent-
age points higher than that of
MASTERS
Continued from the prior page
by banks and sold to a syndi-
cate of investors. The buy side
is likely to act like the Black-
stone Group LPs GSO Capital
Partners, which makes direct
loans to businesses. Some as-
set managers are building
their own trading platforms
with an eye to circumventing
banks trading desks.
In this environment, invest-
ment banks will be on the
Satisfaction Guaranteed hunt for new sources of reve-
nue that are less capital inten-
sive and arent subsidized by
deploying the banks balance
sheet. They also will be look-
ing to reduce costs.
Centrally cleared markets
pushed by regulators will fur-
ther diminish the role of hu-
man traders as well as their
back-office counterparts who
traditionally played largely in-
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A data scientist who re-
Arthur
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Frommer, Travel Editor cently interviewed for a posi-
tion at the New York office of
a large European investment
bank asked the head of a
fixed-income trading desk how
he envisioned the busi-
ness five years from now. All
* * THE WALL STREET JOURNAL.
nificant new legal risk for fi-
nancial advisors, who will face
the threat of class-action law-
yers challenging their every
move, the groups said in a
news release.
While the groups back a
uniform best interest stan-
MOLLY RILEY/ASSOCIATED PRESS
dard, they say it should be
written by the Securities and
Exchange Commission and ap-
ply across all types of invest-
ment advicenot just that
pertaining to retirement sav-
ings.
Weakened by a partisan di-
vide among its commissioners
and weighed down by require-
lows investors to file class-ac- ments to write an abundance
tion lawsuits when they be- of new postcrisis rules, the
lieve an adviser runs afoul of SEC has so far been unable to
the new rules. propose its version of the rule.
Industry groups say that The plaintiffs chose a fed-
will lead to expensive litiga- eral trial court in Dallas be-
tion and that the administra- cause it is overseen by the
tion lacked congressional au- U.S. Court of Appeals for the
thority needed to include such Fifth Circuit in New Orleans,
a provision in the rule. according to people familiar
The private right of ac- with the matter.
tion mechanism creates sig- While some prominent ap-
Bank of America CEO
Brian Moynihan
the S&P 500. And it is about bank regulator equals, is also
150 percentage points better concerned about economic
than that of the KBW Nasdaq growth. And breaking up even
Bank index. one of the big banks could
Regulators are a final piece throw the economy for a
to the puzzle. They seem to loop.
have a made a decision to let It is easy to forget, but the
banks decide whether to stay four big banks are massive
in their current form. New employers. Together, they had
capital constraints make being around 944,000 staff at the
big difficult and impose what end of March. And those
are essentially taxes for this. arent all fat-cat jobs. Nor are
But they dont necessarily they all on Wall Street. Wells
foretell breakups. Fargo, for instance, has its
That is important. In the main office in San Francisco,
postcrisis world, the regula- but it is also the second-larg-
tors have as much power, if est private employer in Char-
not more, than shareholders. lotte, N.C., and is among the
Plus, from regulators view- largest private employers in
point, the big banks, while a the state of Utah.
risk, are safer than they have Whats more, even a move
been in some time. At the end to break up one big bank could
of March, the big four banks destabilize the others. That
had combined total common could prove calamitous for
equity of about $850 billion, markets and the economy.
slightly more than double the None of this means the big
amount at the end of 2006. banks can rest easy. Their
The banks combined assets business models are in flux,
grew, too, but by 55%. their raison dtre is in ques-
That bigger equity cushion tion and the economic envi-
is reassuring. And it also gives ronment is challenging.
them an additional advantage Chances are they will shrink.
on the global stage. But that is a case for evolu-
This strength is important tion, not revolution. And the
in another way. The Federal biggest banks will be able to
Reserve, which is first among live with that.
these guys, theyre gone, the
trader said, pointing out over
the large trading floor. In
top company executive who is
also a client. The idea is to
provide a full range of services
their place, well have five to wealthy clients, meeting
programmers.
Reversing the trend of the
their personal as well as pro-
fessional finance needs.
last half-century, investment
banks also will come under
pressure to shrink and special-
Investment banks hope that
as rivals exit marginal or
poorly performing businesses,
ize. Citigroup Inc., for exam- those left standing will have
ple, has shrunk its interna- more power to set prices. But
tional retail operations to the big asset managers arent
focus on expanding services to likely to accept higher costs. If
institutional and corporate cli- anything, their increased im-
ents. portance will give them more
pricing power, further threat-
ening investment-bank profit
2.4 trillion margins.
There is no doubt surprises
Dollar amount of J.P. Morgans are ahead. Few would have
total assets at the end of 2015 predicted that Goldman Sachs
vs. $2.6 trillion the year before Group Inc. would operate an
online retail bank with no
minimum deposit. This year,
Even J.P. Morgan, which Goldman also acquired Honest
staunchly defends its sprawl- Dollar, a company that pro-
ing global presence, has vides retirement-savings plans
shrunk its total assets to $2.4 for small and midsize busi-
trillion at the end of 2015 from nesses, another undertaking
$2.6 trillion a year earlier. that seems very un-Goldman-
Some investment banks, like.
such as Morgan Stanley and When the last great era of
Credit Suisse Group AG, have transformation began with
pulled back from trading to fo- Merrill Lynchs public offering
cus on wealth management. in 1971, no one expected that
But wealth management itself the largest brokerage in the
is undergoing significant world would one day vanish
change, broadening from in- into a North Carolina
vestment advisory and estate bank. But one thing was clear,
planning to include mortgage just as it is today, that Wall
lending and even advising on Street would never again be
corporate transactions for a the same.
peals courts have moved left-
ward with nominees appointed
by President Barack Obama,
the Fifth Circuit remains a
conservative court dominated
by judges appointed by Repub-
lican presidents.
The Chambers suit also was
joined by the Financial Ser-
vices Institute, the Insured Re-
tirement Institute and several
Texas business groups.
Also on Thursday, the Na-
tional Association for Fixed
Annuities, a trade group,
filed a separate legal chal-
lenge in federal court in
Washington.
Additional trade groups
were expected to file similar
lawsuits in the coming days.
The suit led by the Cham-
ber was filed by the law firm
of Gibson, Dunn & Crutcher,
and one of the attorneys listed
was Eugene Scalia, son of the
late Supreme Court Justice
Antonin Scalia.
Brent Kendall
contributed to this article.
Swift CEO
Surprised
By Extent
Of Attacks
BY KATY BURNE
LONDONGottfried Leib-
brandt, chief executive of the
worlds largest interbank
funds-transfer system, has
said repeatedly that the pros-
pect of cybercrime is what
keeps him awake at night.
On Thursday, he said even
those fears hadnt prepared
him for the scope of the recent
rash of breaches at banks us-
ing his Swift system.
The core of the network it-
self wasnt penetrated, Swift
has said. But intruders in at
least four instances managed
to steal banks Swift codes and
send fraudulent messages
across the network, rattling
users who rely on it being se-
cure.
The most brazen attack
stole $81 million from the Ban-
gladesh central banks account
at the Federal Reserve Bank of
New York.
In one of his first inter-
views since the incidents came
to light, the 55-year-old from
Amsterdam said he had per-
sonally taken calls and meet-
ings over the past two weeks
I think there is
absolutely a shared
sense of urgency.
GOTTFRIED LEIBBRANDT
with customers in New York
and London, including with
what he called the largest
transaction banks.
The calls highlight the
stakes for an organization
whose main purpose is to au-
thenticate communications be-
tween banks and which often
says failure is not an option.
I think there is absolutely
a shared sense of urgency,
Mr. Leibbrandt said. There is
also an appreciation of the
complexity of this problem.
Mr. Leibbrandt is the per-
son promising to restore trust
in the Society for Worldwide
Interbank Financial Telecom-
munication, as Swift is for-
mally known.
The former McKinsey & Co.
management consultant said
he met late last month with
central bankers from the
Group of 20 industrial and de-
veloping nationsthe broader
oversight committee for
Swiftto explain his plan for
addressing the attacks.
Swifts recommendations,
outlined last month, include
beefing up security and set-
ting up a program to guide se-
curity audits of its customers
and impose new certification
requirements for outside con-
sultants and software provid-
ers.
Missing from the plan: de-
tails of how the new security
standards will be enforced.
We knew cyberrisk was a
big deal for the industry, and
it was only a matter of time
before we saw something big
happening, he said. But I
had not expected it in this
form: Someone finding their
way into a banks key systems
like this, and getting away
with this amount of money out
of the blue.
 THE WALL STREET JOURNAL.
Stocks Get Health-Care Booster Shot DIMON
Sector erases its 2016
loss and is now up 0.4%;
some investors wary
before Friday jobs data
BY AARON KURILOFF
AND RIVA GOLD
A rally in health-care shares
helped U.S. stocks edge higher.
Some investors were wary
of making big moves ahead of
TY WRIGHT/BLOOMBERG NEWS
coming events, including Fri-
days jobs report, which could
offer hints about the pace of
interest-rate increases, and the
vote on the U.K.s membership
in the European Union later
this month.
THURSDAYS We re-
MARKETS main in a
fragile, low-
growth envi-
ronment, so I think a lot of
people are content to sit on the
sidelines a bit and wait for
more certainty, said Chris
Dyer, director of global equity
at Eaton Vance.
The Dow Jones Industrial
Average rose 48.89 points, or
0.3% to 17838.56. The S&P 500
gained 5.93 points, or 0.3%, to
2105.26 and the Nasdaq Com-
posite Index gained 19.11
points, or 0.4%, to 4971.36.
Health-care stocks gained
the most in the S&P 500, rising
1.3% to erase their 2016 loss.
The sector is now up 0.4% for
the year. Aetna filed docu-
ments for a bond offering to
fund its acquisition of Hu-
mana, a signal the company
believes the deal is on track.
Humana rose $9.96, or 5.6%, to
SWISS
Continued from page C1
posed by the government,
businesses and many labor
unions, and polls suggest it
will fail by a wide margin.
But the vote does highlight
how radical ideas around eco-
nomic and monetary policy
now are getting an airing amid
prolonged economic torpor
and rapid technological
change. Giving out free money,
it could be argued, is the logi-
cal next step in a world where
central banks have become the
biggest buyers of government
debt and even potentially cor-
porate bonds, where there is
serious discussion of shower-
ing economies with helicop-
ter money, and where tril-
lions of dollars in debt trade
at negative yields.
The theoretical implications
of guaranteed basic income
are far-reaching. It would up-
end the ancient relationship
between work and income, as
well as the link between wel-
fare and need.
It would change the rela-
tionship between citizens and
the government dramatically,
said Michael Strain, senior fel-
low at the American Enter-
prise Institute in Washington.
It would change the relation-
ship between citizens and so-
ciety dramatically.
Supporters say the policy
provides security when ad-
vances in automation are mak-
ing jobs obsolete. It also may
encourage people to start new
businesses, knowing they will
maintain a decent level of in-
come. Finally, backers say a
basic income would simplify
the patchwork of agencies
charged with overseeing pen-
sions, welfare, disability and
other support, saving the gov-
ernment money while freeing
people from the bureaucracies
of means-tested programs.
We have to detach income
from work, said Che Wagner,
a co-initiator of the referen-
dum. Basic income is sort of
startup income for everybody.
Finland has launched a pilot
program whereby a few thou-
sand people would receive
ARND WIEGMANN/REUTERS
Protesters in Zurich in April demand a basic income for everyone.
* * * *
GLOBAL FINANCE
A signal that Aetnas acquisition of Humana is on track lifted the shares of the two companies.
$187.36; Aetna gained 4.74, or
4.1%, to 120.03. Aetna later
sold $13 billion of bonds for
the $34 billion acquisition.
Johnson & Johnson rose
1.71, or 1.5%, to 114.49 after the
company said it would acquire
hair-products company Vogue
International, and United-
Health Group climbed 1.51, or
1.1%, to 136.04. That placed
them among the biggest gain-
ers in the Dow industrials.
Peter Stournaras, portfolio
manager of the BlackRock
Large Cap Series Funds, said
prices of health-care compa-
nies have grown increasingly
attractive after the sector un-
derperformed the broader
market for much of the year.
Energy stocks in the S&P
500 slipped 0.3% after the Or-
ganization of the Petroleum
minimum monthly stipends of
around 600 ($671). Econo-
mists will study how the pro-
gram affects the labor market.
A major argument against
implementing basic income in
Switzerland is cost. The price
tag is expected to be about
200 billion francs a year,
though some of that would be
offset by reduced social
spending elsewhere. Critics
also argue it would damage
Switzerlands export-depen-
dent economy while reducing
incentives for working, partic-
ularly lower-paying and part-
time jobs.
Its not financeable, said
Rudolf Minsch, chief econo-
mist at Economiesuisse, which
represents more than 100,000
Swiss businesses. He estimates
that Switzerlands gross do-
mestic product would shrink
by up to 17%. It would in-
crease taxes by a significant
amount. It would be a disaster
for Switzerland.
Even unions have their
doubts.
The idea seems attrac-
tivebut putting it into place
is too difficult, said Jos Cor-
pataux, central secretary of
the Swiss Federation of Trade
Unions, an umbrella group of
16 unions. We prefer improv-
ing the social insurance sys-
tem rather than putting every-
thing into too much
uncertainty.
At first glance, Switzerland
seems an odd fit for this ini-
tiative. It is one of the worlds
wealthiest countries, with a
per-person GDP higher than
that of the U.S., Germany and
Japan. Its jobless rate is one
of the lowest in the world. It
has a generous social safety
net.
But from the fiscal side, its
government debt is just 45%
of gross domestic product,
compared with almost 250% of
GDP in Japan and more than
100% in the U.S., according to
International Monetary Fund
figures.
Meanwhile, the small coun-
try of 8.3 million residents
lacks the income and geo-
graphic disparities of bigger
countries, making it easier to
design a one-size-fits-all pro-
gram.
Exporting Countries broke off
its meeting without any new
agreements on oil production.
Diamond Offshore Drilling
fell 1.01, or 4%, to 24.30.
U.S. crude-oil prices rose
0.3% to $49.17 a barrel. Exxon
Mobil fell 71 cents, or 0.8%, to
88.53 and Chevron lost 60
cents, or 0.6%, to 100.53.
Energy stocks in the S&P
500 are up more than 10% this
year, making the sector one of
the indexs best performers
even though there has been lit-
tle fundamental improvement
among energy firms, said Omar
Aguilar, chief investment offi-
cer of equities and multiasset
strategies at Charles Schwab
Investment Management.
Its clearly remarkable that
you see energy being where it
is, given the lack of global
About 90% of Apples cash holdings is being held abroad. A company store in Sydney.
Finance
Watch
CREDIT MARKETS
Apple to Sell Bonds
In Taiwan, Australia
Apple Inc. is issuing bonds in
Taiwan and Australia as part of
plans to raise $3 billion to $4 bil-
lion in debt in the Asia-Pacific
region, a person familiar with
the plans said.
The move is Apples latest
step to raise fresh funds for div-
idend payments and share buy-
backs, the person said.
While Apple is sitting on a
huge cash pile of $233 billion as
of March, about 90% of those
cash holdings is held abroad.
Instead of repatriating its
overseas earnings, which would
be taxed if brought back to the
U.S., Apple has typically been us-
Labuan: The Tiny Malaysian Island That Wants to Be a Tax Haven
Executives of the Labuan International Business and Financial Centre have been on a tour of major cities across Asia since late April,
touting the benefits of domiciling businesses on a 36-square-mile island off East Malaysia that taxes profits at just 3%. Mia Lamar
growth and the challenges for
energy companies in terms of
capital spending, he said.
U.S. government-bond
prices strengthened as oil
prices fell. The yield on the
benchmark 10-year Treasury
note was 1.811%, compared
with 1.844% Wednesday. Yields
fall when bond prices rise.
The Stoxx Europe 600 rose
less than 0.1% after European
Central Bank President Mario
Draghi said he expects interest
rates to stay at current or lower
levels for an extended period.
Japanese stocks fell 2.3%, as
the yen strengthened against
the dollar. Early Friday, the
Nikkei was up 0.3%, while the
Shanghai Composite was down
0.2%. Hong Kongs Hang Seng
Index was up 0.5% and Austra-
lias S&P ASX 200 was up 0.6%.
ing the proceeds from debt sales
to help fund its share buybacks
and dividends, according to the
person.
Apple is starting its latest
bond issues in Taiwan and Aus-
tralia with roughly $1 billion in
each market, but the amounts
may increase depending on the
demand, the person said. In ad-
dition to the two markets, the
company also is considering is-
suing bonds in Japan and Singa-
pore, the person added.
An Apple spokesman declined
to comment.
Juro Osawa
LIBOR PROBE
First U.S. Trader
Faces Charges
Two former Deutsche Bank
AG traders face criminal
charges for allegedly trying to
manipulate the Libor bench-
mark, including the first U.S.
trader to be charged in connec-
tion with the yearslong probe.
Matthew Connolly, 51 years
old, former head of the banks
Friday, June 3, 2016 | C3
Continued from page C1
of automotive finance for Ex-
Treasury Auctions perian, said in mid-May.
The percentage of loans and
The U.S. Treasury Department leases that were 30 days late
will auction $113 billion in securi- in the first quarter increased
ties next week, comprising $24 slightly from a year prior to
billion in new debt and $89 billion 2.1%, according to Experian.
in previously auctioned debt. De- The auto-loan market is
tails (all with minimum denomi- fragmented. The largest 20
nations of $100): lenders represented about 49%
 Monday: $31 billion in 13- of car loans given out in the
week bills, a reopening of an is- fourth quarter, according to
sue first sold on March 10, 2016, Experian. Ally Financial Inc.
maturing Sept. 8, 2016. Cusip and Wells Fargo & Co. are the
number is 912796JK6. two largest, each accounting
Also Monday, $26 billion in for about 5.7% of car loans
26-week bills, a reopening of an given out in the fourth quar-
issue first sold on Dec. 10, 2015, ter.
maturing Dec. 8, 2016. Cusip Allys CEO, Jeffrey Brown,
number: 912796HU6. played down risks among the
Noncompetitive tenders for companys auto borrowers.
both issues must be received by Our auto finance business is
11 a.m. EDT Monday and com- doing great and putting on
petitive tenders, by 11:30. better risk-adjusted returns,
 Tuesday: $24 billion in he said at the Thursday invest-
three-year notes, dated June 15, ment conference. We know
2016, maturing June 15, 2019. fully what we are originat-
Cusip: 912828R85. Noncompeti- ingthere are no skeletons in
tive tenders must be received by the closet.
noon Tuesday; competitive ten- Wells Fargo, which declined
ders, by 1 p.m. to comment, recently has said
 Wednesday: $20 billion in that used-car values may keep
nine-year, 11-month 1.625% falling from recent highs.
notes, a reopening of an issue Weve managed through
first sold on May 16, 2016, ma- many cycles like this before
turing May 15, 2026. Cusip: and were well positioned to
912828R36. Noncompetitive ten- continue to provide strong re-
ders must be received by noon turns, Dawn Martin Harp, the
Wednesday; competitive tenders, banks head of dealer services,
by 1 p.m. said at an investor presenta-
 Thursday: $12 billion in 29- tion in May.
year, 11-month 2.5% bonds, a re-
11%
opening of an issue first sold on
May 16, 2016, maturing May 15,
2046. Cusip is 912810RS9. Non-
competitive tenders must be re- Subprime car-loan volumes
ceived by noon Thursday; com- rose by this much in the first
petitive tenders, by 1 p.m. quarter, according to Experian.
At J.P. Morgan, Mr. Dimon
said the bank is careful on the
structure of leasing transac-
tions and does very little sub-
prime. J.P. Morgans auto-re-
lated net charge-offs fell to
0.44% in the first quarter from
0.5% in the previous quarter,
but were up from 0.38% in the
year-earlier period.
The bank doesnt break out
its auto revenue. In the first
quarter, it had $62.9 billion of
auto assets. The bank also has
reserved $399 million for
auto-related loan losses for
PAUL MILLER/EUROPEAN PRESSPHOTO AGENCY
the most recent quarter, which
has been pretty consistent
each quarter over the past
year.
Separately, Mr. Dimon also
said the bank may have to add
some provisions to its en-
ergy-related reserves but it
wouldnt have a material im-
pact.
Though oil has begun to
stabilize at around $50 a bar-
rel in recent weeks, he said
those potential reserve in-
pool trading desk in New York, creases would be due to big
and Gavin Campbell Black, 46, a
former derivatives trader in
corporate borrowers. If those
companies are downgraded,
London, were accused of trying
to rig the London interbank of-
that could have a big effect.
The bank could lose money,
fered rate, an interest-rate so those changes could affect
benchmark, between 2005 and provisioning, he said, adding
2011 to benefit the banks trad- that regulators want banks to
ing positions, according to an be more conservative on
indictment unsealed Thursday. how they account for their re-
Mr. Connolly, who was taken serves, focusing on collateral
into custody on Thursday, ac- and valuations.
cording to the Justice Depart- Mr. Dimon also reiterated
ment, is the first U.S. trader to his view that J.P. Morgan
be charged in the case. doesnt need to break up. Im
A third former Deutsche like a broken record on this,
Bank trader, Michael Curtler, he said. The bank has de-
who supervised Mr. Black, fended itself more intensely
pleaded guilty in October 2015. for the past 18 months after
The bank paid $2.5 billion to analysts and investors have
resolve related criminal and civil asked more pointed questions
charges in April 2015. U.S. pros- about whether the bank would
ecutors have charged more be worth more in parts.
than a dozen traders and other Were not running [the
bank employees with trying to businesses] because we just
manipulate Libor, including trad- love to be a big company, he
ers in London and elsewhere. said. Were running them be-
Lawyers for the accused cause it actually works for the
couldnt be located for com- customer.That shows up in
ment. market share and results; not
Aruna Viswanatha because I said so.
BAZUKI MUHAMMAD/REUTERS
C4 | Friday, June 3, 2016
The Wall Street Journal asked several executives and others to weigh in on the state of banking as part of a weeklong series.
Todays Bank:
Necessity, Mystery,
Whipping Boy
A bank is a necessity.
Banks have been around for
over 3,000 years. We humans
need a place to keep our
money, process our payments,
and lend us money when our
ready cash isnt enough to
fulfill our aspirations. Incon-
gruously, a bank is supposed
to keep our money safe and
accessible, but also risks that
money on making loans and
trades and such, which is why
a bank is...
Sheila C. Bair, former chairman
of the Federal Deposit
Insurance Corp.
A mystery. Back in the
day, when banks were
smaller and simpler, we
could see our deposits at
work when people in our
community borrowed money
to buy a house or grow a
business. (Think Jimmy
Stewart in Its a Wonderful
Life.) Today banks are
mostly big and complicated.
Our cash flies around the
globe in currency trading,
swaps dealing, leveraged
buyouts, block trades. None
of us really fully understands
what banks do with our
money, which is why a bank
is...
Government Subsidized.
We dont trust what we
dont understand, so most of
us give banks our hard
earned dollars only if they
are insured by the Federal
Deposit Insurance Corp. The
government also lets most
banks borrow from the
Federal Reserve when they
need to, and gives them
guarantees to protect against
losses on government-
favored loans like mortgages.
The Richmond Federal
Reserve Bank estimates
taxpayers directly or
indirectly guarantee over
60% of banks liabilities.
With all that government
protection, bank customers
and investors dont ask many
questions about the crazy
things banks might do with
their money, which is why a
bank is...
Regulated: Being run by
humans, banks are tempted
to do all sorts of risky things
since they are playing
around with other peoples
money and those people
arent watching. So
regulators have to step in
with rules and supervision to
counteract the skewed
economic incentives created
by all these safety-net
programs and make sure
bank owners put plenty of
their own money at risk,
which is why a bank is...
Conflicted: They are
chartered and supported by
the government to serve a
public goodproviding
credit and payments
processing to the real
economy. But they are
owned by shareholders (and
run by executives who are
mostly paid in shares). Bank
shareholders demand returns
and like to shift downside
risk to the government. That
means when the good times
roll, banks will lend and
speculate freelyhanding
out umbrellas in the
sunshine to use a Robert
Frost metaphor. When the
bad times come, they will
pull back on lending and let
us soak in the rain, which
means a bank is...
A Political Whipping Boy:
American political leaders
have a long history of bad
things to say about banking.
My schools co-founder,
George Washington,
borrowed too much from
British ones, but still signed
legislation creating our first
national one. Jefferson
feared them more than
standing armies. Lincoln
said they were a greater
enemy than the
Confederates.
Jackson called them a
PERSPECTIVES: WHAT IS A BANK?
den of vipers. Teddy represent stability,
Roosevelt labeled them part responsibility and
of the invisible community stewardship.
government. These days, Strong, healthy banks that
the Donald has sparred with embody these traits are
them. The Bern has scorned essential to Americas
them, which is probably why prosperity. They help
theyve been showering families build wealth and
donations on Hillary. Of financial security, and enable
course, Barack bashed them businesses to grow. And
too, and then kept bailing whether theyre small
them out. Because at the end institutions in Appalachia or
of the day, a bank is... global giants like J.P. Morgan
A Necessity. Chase & Co., which employs
Sheila C. Bair 20,000 people in Central
i i i Ohio alone, successful banks
are devoted to their
Meet the Real Bank customers and the places
they serve.
of Mom and Dad Too often, however, some
What is a bank? banks ignore these basic
Stepping away from the principles, with disastrous
regulatory or business consequences.
definition of a bank, which My wife and I live just
will always be changing with south of Slavic Village, in ZIP
the times, technology and Code 44105, in Cleveland.
the latest Android phone,
whats the ethos that defines
a bank now and forever?
A bank is like a parent.
Unlike other businesses, it
has a responsibility to care
for, not just serve, its
customers in the same way a
parent must care for, not
just serve, its dependents.
Most businesses have goals
to sell as much as possible
we dont have a problem
with Apple or Tesla selling
and profiting as much as
they can. Generally, we
celebrate it.
A bank is different, which Sen. Sherrod Brown (D., Ohio),
is what drives the perpetual of the Senate Committee on
debate about a banks role in Banking, Housing and Urban
society. Affairs
Like a parent, a bank must
take care of our security
(savings), our nutrition Like many Ohio
(interest), and in a parents communities, the housing
most difficult role, it must crisis hit Slavic Village early.
decide when, how and how In the first half of 2007, my
much to let us grow (credit). ZIP Code44105had more
The security part is the most foreclosures than any ZIP
straightforward, at least on Code in the country,
what the objective is. according to one study at
Nurturing and especially the time. Slavic Village, with
growing are forever complex its declining industrial base
and the source of all the I and shrinking population,
hate my bank comments. was ripe for subprime
How many times does a lendersaided by some of
the biggest Wall Street
banksto prey on vulnerable
homeowners.
With the help of
institutions like Third
Federal Savings & Loan,
which has its headquarters
in Slavic Village, the
community is slowly
recovering. Third Federals
investments in Slavic Village
have been good for its
business, its customers, and
the community.
Congress passed the
Dodd-Frank Act in 2010 to
address the roots of the fi-
nancial crisis so that taxpay-
Chris Larsen, CEO of Ripple, a ers, homeowners, and the
startup focused on cross- economy would not have to
border payments experience this devastation
again. The law established
new rules to bring stability
caring parent hear I hate to the markets, protect con-
you? Uber can be loved all sumers, and target the reck-
the timelike the uncle that less behavior at financial in-
lets you get away with stitutions that helped fuel
everything. A bank, like a the meltdown. New, stronger
parent, can never be loved prudential standards for the
all the time. It has to say no nations largest banks have
a lot. Thats part of the job. increased capital levels, re-
Maybe thats why despite duced leverage, and im-
all the talk of hating our proved liquidity.
banks, most people stick Wall Street reform has
with their bank for decades. made the financial system
Shiny new fintech companies safer and more stable, but
are sometimes like pre- theres more work to do.
parents, first lambasting When the assets of the six
others on how they would largest banks are equal to
never do this or that, only to about 54% of our gross do-
eventually find themselves mestic productcompared
making the same agonizing with 19% just 20 years ago
decisions. we still havent solved the
Once they take on the role Too Big to Fail problem.
of bank, they find that the Critics want to blame Dodd-
slick user experience or Frank for that growth, but
mobile app was like taking that share is actually down
the kids to Disneylandyes, since the laws enactment in
it was fun, and you were 2010. And though three of
popular, but it was really the six banks have shrunk,
only a tiny part of the job. its clear there is room for
Banks dont have to be improvement.
selfless George Baileys from The Wall Street reform
the movie Its a Wonderful law envisions a time when
Life. Parents can have even the largest banks are
careers, be successful, even boring enough that they can
be celebrities. But not fail without needing a bail-
everyone can be a parent. out from American taxpay-
Regulators should be like ers.
protective services. When it While weve made a lot of
sees a dangerous parent, progress, too many commu-
take the dependents away. nities like Slavic Village are
But dont penalize banks for still struggling to recover.
not being perfect parents. We must continue our ef-
Every parent knows thats forts to make sure the bank-
impossible. ing system is working for
Chris Larsen the people of Slavic Village,
i i i not just Wall Street.
Sherrod Brown
Banks Shouldnt i i i
Forget Main Street
For many Americans, their For a New Business,
first relationship with a bank Banks Arent the
isnt through a mortgage or
a checking account. Instead,
First Stop
its the name on their Little The Wall Street Journal
League baseball or softball asked me to write about
jersey, a name that should what banks do these days.
From an entrepreneurs bring this experience with
perspective, they dont seem
to have a lot to offer
companies in the early
stages.
Having spent 20 years
analyzing financial-services
companies, including 15 at
Lehman Brothers and
Barclays, I took a midcareer
break to develop a new
product in a high-growth
industry.
Our company, FreeBird
Flight, makes commercial
and industrial drones. When
I launched the venture in
2014, I assumed our biggest
challenge would be
overcoming technological
hurdles and coming to
market with a unique
product.
Two years later, we have
filed for a patent and are
selling our product online.
Thats the good news.
The financial side has
turned out to be the bigger
challenge. When we began to
evaluate various financing
options last year, it quickly
became clear that banks
wouldnt be interested in
funding such an early-stage
venture. After all, the
biggest banks for years have
been making fewer loans to
small businesses.
Its ironic that, after
spending my whole career
up to this point working in
traditional financial services,
no banking products or
services would be available
or attractive to a business
like ours. I once assumed
that starting a business
would involve establishing
an account with a local bank
branch and using services
like cash management,
payments processing and
lines of credit. A personal
relationship would grow
over time.
We do have a Bank of
America checking account
and debit card for the
business, but thats about it.
Theres no personal
relationship. We initially
went to the bank to set up
payments processing for our
online store, but the time it
would take to deal directly
with the bank was
overwhelming, so we instead
used an online service,
Shopify.
I guess this is the face of
small-business banking in
2016. A couple of decades
ago, I remember my parents
starting a small business and
knowing the local branch
manager on a first-name
basis. I watched him bend
over backwards to make
them happy.
I certainly understand
why banks are now more
conservative with all types
of loans. At FreeBird Flight, I
have been funding
development out of my own
pocket, but my ability to
continue doing that is
limited.
I secured some interim
funding recently, but not
through a bank. A
Connecticut small businesses
association suggested a
crowdfunding campaign
through Kickstarter. At the
end of March, we launched a
campaign that raised a little
over $50,000. Members of
Kickstarter contribute to
projects that are pitched on
renting and storing money.
Roger Freeman, founding
partner and chief technology
officer of FreeBird Flight
the site through outright
donations or rewards,
which in our case were
drones at a steep discount. It
was a great opportunity to
presell units.
If nothing else, this
experience has opened my
eyes to the role that upstart
internet-savvy companies
not banksplay in providing
banking services to a small
business. If I do return to
banking, I hope Ill be able to
THE WALL STREET JOURNAL.
communities growing and
me to help improve access to
capital for innovative
startups who drive the
entrepreneurial spirit that is
such an important fabric of
our nation.
Roger Freeman
i i i bank. Its a symbiotic
Should Banks
Simply Go Away?
When I asked my team
what a bank should be, the
pithiest answer I got back
was simply: Gone.
Harsh, terse and perhaps
somewhat epigrammatic
but fair? Well, it depends on
how you think about the
very essence of a bank. If
you mean deposit
aggregation, commercial and
sovereign lending, and other
well-defined and reasonable
safe activities, I think the
answer is a definitive no
banks are and should be here
to stay.
But when you talk about
digital payments, cross-
border capital formation and
smaller dollar lending, Id
extend Bill Gatess famous
aphorism that We need
banking, but we dont need
banks.
For hundreds of years,
banks have played a vital,
embedded role in our
society. At their most basic,
they provide a mechanism to
match up savings with credit
needs. Beyond that, they
Sam Hodges, co-founder of
Funding Circle, an online
marketplace lender
play a vital role in the
government-driven approach
to creating and distributing
money in the form of fiat
currencies (thereby allowing
taxation), and they also
serve as hubs for global
payment and currency
exchange.
The very image of a bank
conjures up Fort Knox or the
Federal Reserve Bank of New
Yorka fortress of safety,
where ones savings and data
are secure.
Unfortunately, some banks
have strayed too far from
their roots, others have
become colossal and
ungainly hydras, and still
others have abrogated
consumer trust. Beyond this,
very few have adopted
technology or more novel
business models to better
serve their customers. In
short, the banking system is
in a decisive decadeits role
is clear, but its future form
is not.
I believe we can build a
better banking system: one
that is safer, smaller and
absorbs less of the value
created through moving,
And one that is less reliant
on maturity transformation
(borrowing short-term
money and investing it in
long-term assets and
loans).
This better banking
system will instead
increasingly rely on
technology to help protect,
track and move money. And,
in doing thisin evolving
itselfbanking will get
better even as banks
slowly go away. The idea
that all money activities
happen in one place will
slowly erode. Banks will turn
into a set of connected
banking services, and
consumers and society will
benefit as a result.
Sam Hodges been.
i i i I am proud to be a banker.
Banks True
Currency: Trust
A bank is the heartbeat of
every community in which it
operateswhether that
community is local, regional,
national, or global. It is a
banks single greatest
purposeto keep entire
going.
A strong bank fortifies the
overall health of our
communities. The stronger
the bank, the stronger the
community. The stronger the
community, the stronger the
relationship that has always
been built on trust.
The financial crisis eroded
trust and challenged a core
belief: that a sound
American economy and
strong financial system
would always create upward
momentum. Banks are
working hard to regain that
trust, to rebuild communities
and to support the
restoration of the economy.
I believe we are at a
defining moment that makes
it essential to recognize that
a bankand only a bank
can be the financial bedrock
for the vibrancy of our
communities: It is time to
trust again.
Rebuilding that trust is
crucial, because banks
engagement with customers
is infinitely different today
than when I started my
career as a bank teller more
than 40 years ago. Back
then, banks would primarily
tell customers what we could
do for them. Today,
customers are telling banks
what they need from us.
We are listening and
adjusting. Changing
customer values and
lightning-like adoption of
varying technologies are
altering the expectations for
speed, tolerance for risk,
fears about data security,
and visions for their
personal financial freedom.
It demands transparency and
trust.
Plus, our customers
definitions of community are
evolving and we must evolve
with them. Community now
transcends geography and
includes deeply personal
issues, such as financial
literacy, corporate social
responsibility and reaching
the unbanked.
As we rebuild trust
between the banks and our
communities, the strength of
a bank is a far more
important consideration than
the size of a bank. We need
large banks, midsize banks,
and neighborhood banks
working together to build
our communities. Size is
arbitrary. Strength is
measurable. Trustbanks
true currencyis built on
strength.
To reach our goal, we
must ensure that no external
forces or internal
distractions interfere with
Richard K. Davis, chairman
and CEO of U.S. Bancorp
what banks do bestkeeping
entire communities growing
and going. Every day, banks
withstand shortsighted
attempts to redefine or
criticize the industry. This
rhetoric is harmful to the
American economy and
detrimental to the psyche of
customersand largely
unwarranted given the
progress we are making.
Banks have learned many
lessons in recent years.
While considerable
protections have been added
to improve the safety and
soundness of the industry,
we know we must get better
every dayand we are.
We are stronger today on
the Main Streets across the
nation than we have ever
I am proud to lead a bank
that is an engine for
economic growth. I am
proud that our first core
value is do the right thing.
Most importantly, I am
forward-looking and focused
squarely on being the most
trusted choice for our
communities.
Richard K. Davis
THE WALL STREET JOURNAL. Friday, June 3, 2016 | C5

MARKETS DIGEST
Dow Jones Industrial Average S&P 500 Index Nasdaq Composite Index
Last Year ago Last Year ago Last Year ago
17838.56 s 48.89, or 0.27% Trailing P/E ratio * 19.04 16.27 2105.26 s 5.93, or 0.28% Trailing P/E ratio * 24.04 21.46 4971.36 s 19.11, or 0.39% Trailing P/E ratio * 22.15 22.85
High, low, open and close for each P/E estimate * 17.06 16.12 High, low, open and close for each P/E estimate * 17.75 18.25 High, low, open and close for each P/E estimate * 18.75 19.44
trading day of the past three months. Dividend yield 2.56 2.32 trading day of the past three months. Dividend yield 2.19 1.97 trading day of the past three months. Dividend yield 1.30 1.19
All-time high 18312.39, 05/19/15 All-time high: 2130.82, 05/21/15 All-time high: 5218.86, 07/20/15

Current divisor 0.14602128057775

18400 2100 4920

18000 2060 4850

17600 2020 4780

17200 1980 4710

Session high
65-day moving average DOWN UP
t

Session open Close

16800 1940 4640
Close Open
t

65-day moving average

16400 1900 65-day moving average 4570
Session low
Bars measure the point change from session's open
16000 1860 4500
Feb. Mar. Apr. May Feb. Mar. Apr. May Feb. Mar. Apr. May
* 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 6:30 p.m. ET as reported by electronic NYSE NYSE MKT
Dow Jones trading services, securities dealers and regional exchanges. Minimum Total volume* 973,712,208 9,932,114
Industrial Average 17838.56 17703.55 17838.56 48.89 0.27 18144.07 15660.18 -0.4 2.4 5.7 share price of $2 and minimum after-hours volume of 5,000 shares. Adv. volume* 593,651,101 5,237,023
Transportation Avg 7776.15 7729.15 7763.08 -10.17 -0.13 8509.64 6625.53 -8.0 3.4 7.3 Most-active issues in late trading Decl. volume* 364,300,339 4,078,740
Utility Average 661.53 654.59 661.53 -0.30 -0.05 671.04 541.97 16.0 14.5 11.1 Volume After Hours Issues traded 3,197 365
Company Symbol (000) Last Net chg % chg High Low Advances 1,992 167
Total Stock Market 21738.64 21557.35 21738.62 78.51 0.36 22287.78 18663.11 -0.9 3.0 8.5
Baxalta BXLT 53,763.7 46.20 0.18 0.39 46.20 46.02 Declines 1,065 160
Barron's 400 532.26 527.74 532.26 2.09 0.39 586.75 446.15 -6.9 3.1 7.4
WisdomTree Japan Hdg Eqty DXJ 5,729.9 42.75 unch. 42.83 42.60 Unchanged 140 38
Nasdaq Stock Market SPDR S&P 500 SPY 5,181.8 210.88 -0.03 -0.01 211.04 210.18 New highs 134 3
Nasdaq Composite 4971.36 4924.23 4971.36 19.11 0.39 5218.86 4266.84 -1.7 -0.7 12.9 Ford Motor F 4,624.5 13.22 0.01 0.08 13.23 13.19 New lows 7 4
4531.35 4488.08 11.28 4719.05 3947.80 -1.3 Closing tick 287 56
Nasdaq 100 4531.35 0.25 1.0 15.0 VanEck Vectors Gold Miner GDX 3,862.3 22.79 0.02 0.09 22.81 22.74
Closing Arms 0.93 0.94
PulteGroup PHM 3,258.9 18.88 -0.01 -0.05 18.95 18.82
Standard & Poor's Block trades* 5,179 99
0.28
Vanguard REIT VNQ 3,231.4 84.14 -0.03 -0.04 84.17 83.78
500 Index 2105.26 2088.59 2105.26 5.93 2128.28 1829.08 0.4 3.0 8.9 Nasdaq NYSE Arca
iShares MSCI EAFE ETF EFA 2,983.9 58.34 0.01 0.02 58.39 58.13
MidCap 400 1507.10 1492.58 1507.09 8.57 0.57 1549.44 1238.82 -0.9 7.8 8.4 Total volume* 1,713,371,907 234,405,686
SmallCap 600 713.22 707.14 713.21 3.10 0.44 742.13 588.26 -0.6 6.2 8.9 Percentage gainers Adv. volume* 1,149,934,008 145,103,720
Decl. volume* 546,863,742 80,369,327
Other Indexes Ambarella AMBA 495.0 46.75 4.27 10.05 47.79 39.86
Issues traded 2,983 1,412
Russell 2000 1170.77 1159.36 1170.58 7.54 0.65 1295.80 953.72 -6.4 3.1 6.0 Bazaarvoice BV 23.7 4.25 0.36 9.25 4.26 3.89
Advances 1,750 961
NYSE Composite 10487.61 10403.51 10487.58 32.65 0.31 11149.36 9029.88 -4.7 3.4 4.1 NorthStar Asset Mgmt Grp NSAM 30.1 13.20 0.89 7.23 13.31 12.22 Declines 1,074 369
Value Line 465.82 461.55 465.81 2.52 0.54 517.73 383.82 -8.6 4.5 3.1 Broadcom AVGO 528.7 165.65 10.74 6.93 166.80 151.80 Unchanged 159 82
NYSE Arca Biotech 3328.87 3234.68 3327.64 82.95 2.56 4431.87 2642.53 -18.8 -12.8 18.8
Ariad Pharmaceuticals ARIA 145.9 9.38 0.47 5.27 9.40 8.90 New highs 88 37
New lows 25 16
NYSE Arca Pharma 526.38 520.90 526.27 5.57 1.07 605.94 477.25 -10.3 -2.8 7.7 ...And losers
Closing tick 123 228
KBW Bank 71.40 70.61 71.40 0.27 0.38 80.41 56.51 -6.4 -2.3 5.0 Zumiez ZUMZ 92.1 13.65 -1.41 -9.36 15.06 13.21 Closing Arms 0.77 1.52
PHLX Gold/Silver 81.59 79.27 80.65 0.21 0.26 92.85 38.84 17.5 78.0 -9.1 BlackRock Municipal Trust BFK 15.0 14.78 -0.92 -5.86 14.84 14.78 Block trades* 7,005 1,108
PHLX Oil Service 162.57 159.01 161.48 -2.17 -1.32 214.12 128.61 -22.4 2.4 -14.0 Motorola Solutions MSI 8.6 65.31 -3.49 -5.07 68.97 65.31 * Primary market NYSE, NYSE MKT NYSE Arca only.
PHLX Semiconductor 703.43 699.09 703.43 0.14 0.02 728.22 559.18 -3.1 6.0 14.5 Statoil ADR STO 27.8 15.52 -0.37 -2.31 15.89 15.52 (TRIN) A comparison of the number of advancing and declining
14.92 13.62 -0.57 -4.01 40.74 11.95 -25.2 issues with the volume of shares rising and falling. An
CBOE Volatility 13.63 -7.3 -5.8 Supervalu SVU 15.9 4.70 -0.11 -2.29 4.84 4.70 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 Latest Session 52-Week Latest Session 52-Week
Region/Country Index Close Net chg % chg % chg Company Symbol Close Net chg % chg High Low % chg Company Symbol Close Net chg % chg High Low % chg

World The Global Dow 2336.46 0.60 0.03 0.002 Moleculin Biotech MBRX 8.00 2.00 33.33 ... ... ... Zedge Cl B ZDGE 4.70 -2.47 -34.45 7.85 4.50 ...
The Global Dow Euro 1971.33 2.71 0.14 2.7 NantHealth NH 18.59 4.59 32.79 ... ... ... Ocean Power Techs OPTT 4.17 -1.87 -30.96 6.79 0.95 -28.1
DJ Global Index 311.06 0.26 0.08 1.0 Cellectar Biosciences CLRB 3.89 0.74 23.49 38.89 1.00 -85.9 Sarepta Therapeutics SRPT 15.71 -5.70 -26.62 41.97 8.00 -38.2
World DJ Global ex U.S. 207.85 0.41 0.20 1.1 Joy Global JOY 20.36 3.66 21.92 41.00 8.35 -47.3 Conn's CONN 8.63 -3.08 -26.30 43.95 8.48 -77.9
CST Brands CST 44.95 6.93 18.23 45.28 29.73 14.3 Mitek Systems MITK 7.56 -1.52 -16.74 9.49 2.71 102.7
Americas DJ Americas 506.12 1.85 0.37 3.9
Sao Paulo Bovespa 49887.24 1.78 15.1 Centrus Energy LEU 3.39 0.43 14.53 5.44 1.00 -23.0 American Woodmark AMWD 67.59 -13.22 -16.36 89.89 53.60 19.0
Brazil 874.59
14136.99 0.52 8.7
Eco-Stim Energy Solutions ESES 2.75 0.32 13.17 7.50 1.88 -61.0 SemiLEDS LEDS 1.97 -0.38 -16.17 8.30 1.36 -75.4
Canada S&P/TSX Comp 73.45
DHX Media Var Voting DHXM 5.63 0.65 13.05 8.53 4.64 -25.2 Real Goods Solar Cl A RGSE 5.10 -0.80 -13.56 96.00 4.80 ...
Mexico IPC All-Share 45508.31 49.30 0.11 5.9
Achaogen AKAO 3.61 0.42 12.99 7.74 2.59 -36.3 DeVry Education Group DV 15.84 -2.36 -12.97 34.18 15.36 -52.2
Chile Santiago IPSA 3054.30 8.67 0.28 3.8
Ciena CIEN 20.03 2.27 12.78 26.50 15.62 -18.7 Box Cl A BOX 11.34 -1.47 -11.48 20.60 8.82 -34.6
Europe Stoxx Europe 600 344.35 0.23 0.07 5.9
Cemtrex CETX 2.42 0.27 12.56 5.19 1.56 -24.6 Champions Oncology CSBR 2.91 -0.36 -11.01 9.00 2.61 ...
Euro zone Euro Stoxx 325.09 0.06 0.02 5.8
Keryx Biopharmaceuticals KERX 6.69 0.71 11.87 10.55 2.80 -34.6 Fibrocell Science FCSC 2.04 -0.24 -10.53 7.60 1.98 -60.2
Belgium Bel-20 3512.48 8.21 0.23 5.1
CounterPath CPAH 2.28 0.24 11.71 6.60 1.85 -64.9 Concordia Healthcare CXRX 28.04 -3.01 -9.69 89.10 19.02 -60.5
France CAC 40 4466.00 9.39 0.21 3.7 Global Blood Therapeutics GBT 26.49 2.75 11.58 57.00 12.24 ... Onconova Therapeutics ONTX 4.14 -0.42 -9.21 40.00 3.23 -85.0
Germany DAX 10208.00 3.56 0.03 5.0 Mesa Laboratories MLAB 112.75 11.18 11.01 126.05 77.00 23.5 StealthGas GASS 4.19 -0.42 -9.11 7.10 2.39 -38.6
Israel Tel Aviv 1444.86 4.41 0.31 5.5
Italy FTSE MIB 17767.30 43.55 0.24 17.0
Netherlands AEX 447.59 0.81 0.18 1.3 Most Active Stocks Volume Movers Ranked by change from 65-day average*
Spain IBEX 35 8957.90 41.00 0.46 6.1 Volume % chg from Latest Session 52-Week Volume % chg from Latest Session 52-Week
Company Symbol (000) 65-day avg Close % chg High Low Company Symbol (000) 65-day avg Close % chg High Low
Sweden SX All Share 485.01 0.85 0.18 4.0
Switzerland Swiss Market 8205.82 20.29 0.25 6.9 Baxalta BXLT 174,885 1469.4 46.02 -0.39 46.52 29.83 Easterly Govt Properties DEA 4,102 6865 18.64 -1.79 19.07 15.25
6185.61 0.10 0.9 Weatherford International WFT 118,955 492.0 5.89 6.51 14.64 4.71 Communications Systems JCS 355 4301 6.77 -1.31 11.45 5.56
U.K. FTSE 100 6.32
Bank Of America BAC 63,205 -34.2 14.94 0.54 18.48 10.99 SPDR MSCI Emg Quality Mix QEMM 582 2798 48.54 -0.14 61.48 41.17
Asia-Pacific DJ Asia-Pacific TSM 1356.56 7.21 0.53 2.4 SPDR S&P 500 SPY 57,792 -38.8 210.91 0.30 213.34 181.02 Zedge Cl B ZDGE 220 2095 4.70 -34.45 7.85 4.50
Australia S&P/ASX 200 5278.90 44.30 0.83 0.3 iPath SP 500 VIX Sht Tm VXX 52,441 -22.6 13.09 -2.78 31.48 13.09 Cmnty Bankers Acqu ESXB 165 1643 5.15 -2.35 5.50 4.38
China Shanghai Composite 2925.23 11.72 0.40 17.3
Oracle ORCL 50,461 312.4 38.66 -3.97 45.24 33.13 Baxalta BXLT 174,885 1469 46.02 -0.39 46.52 29.83
Hong Kong Hang Seng 20859.22 98.24 0.47 4.8
iShares MSCI Emg Markets EEM 46,060 -30.3 33.37 0.82 41.07 27.61 iSh 10-20Y Treasury Bond TLH 1,502 1429 141.53 0.49 157.26 131.19
India S&P BSE Sensex 26843.14 129.21 0.48 2.8
Alibaba Group Holding ADR BABA 42,747 213.3 77.30 0.80 91.60 57.20 Bank of Commerce Hldgs BOCH 407 1378 6.32 0.00 7.39 5.05
Japan Nikkei Stock Avg 16562.55 393.18 2.32 13.0
iShares MSCI Japan ETF EWJ 40,713 4.7 11.68 -0.85 13.22 10.18 Concordia Healthcare CXRX 7,084 1286 28.04 -9.69 89.10 19.02
Singapore Straits Times 2795.09 4.55 0.16 3.0 VS 2x VIX Short Term TVIX 38,920 -0.5 2.28 -4.60 19.90 2.28 PwrShs Ex-Tr Tr Dyn Smcn PSI 146 1283 26.87 -0.19 28.87 20.28
South Korea Kospi 1985.11 2.39 0.12 1.2
* 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
Taiwan Weighted 8556.02 41.14 0.48 2.6 5,000 shares =Has traded fewer than 65 days
Sources: SIX Financial Information; WSJ Market Data Group

Consumer Rates and Returns to Investor Benchmark

Treasury Yields
yield curve Forex Race Currencies
andtoRates
Yield maturity of current bills, Yen, euro vs. dollar; dollar vs.
U.S.-dollar foreign-exchange rates in late New York trading
U.S. consumer rates Selected rates notes and bonds major U.S. trading partners
30-year mortgage, Rate US$vs, US$vs,
A consumer rate against its 16% Thurs YTDchg Thurs YTDchg
benchmark over the past year 5.00% 14 Yen
s

Country/currency in US$ per US$ (%) Country/currency in US$ per US$ (%)
Bankrate.com avg: 3.65% 12
4.00 Americas Thailand baht .02807 35.620 1.1
Pacific Finance Group, LLC 3.38% 10
WSJ Dollar Vietnam dong .00004454 22453 1.4
4.00% Bothell, WA 8 Argentina peso .0719 13.9080 7.5
425-354-5602 3.00 index Europe
t 6 s Euro Brazil real .2783 3.5930 9.3
s
30-year xed-rate Best Rate USA 3.49% 4 Canada dollar .7635 1.3098 5.4 Czech Rep. koruna .04127 24.231 2.6
3.00 One year ago 2.00
t

mortgage Newtown Square, PA 888-998-2451 2 Chile peso .001450 689.80 2.7 Denmark krone .1499 6.6705 2.9
t 0 Colombia peso .0003213 3112.77 1.9 Euro area euro 1.1153 .8967 2.6
2.00 EmpireAmerica 3.49% 1.00 2
t
Thursday Ecuador US dollar 1 1 unch Hungary forint .003566 280.43 3.4
Woodland Hills, CA 866-411-3621 4
10-year Treasury 0.00 Mexico peso .0535 18.6775 8.6 Iceland krona .008045 124.30 4.5
1.00 Aurora Financial 3.50% 6
note yield Peru new sol .2965 3.373 1.2 Norway krone .1200 8.3348 5.7
1 3 6 1 2 3 5 710 30 2015 2016
Vienna, VA 703-652-7210 Uruguay peso .03235 30.9100 3.3 Poland zloty .2543 3.9320 0.2
0.00 month(s) years Venezuela b. fuerte .100200 9.9801 58.3 Russia ruble .01493 66.962 6.9
J J A S O N D J F M A MJ Camelot Mortgage Group, Inc. 3.50%
maturity Asia-Pacific Sweden krona .1201 8.3273 1.4
2015 2016 Franktown, CO 303-814-2310 Switzerland franc 1.0097 .9904 1.2
Sources: Ryan ALM; Tullett Prebon; WSJ Market Data Group Australian dollar .7229 1.3833 0.8
Turkey lira .3391 2.9490 1.1
China yuan .1519 6.5849 1.4
Yield/Rate (%) 52-Week Range (%) 3-yr chg Ukraine hryvnia .0399 25.0340 4.3
Interest rate Last (l)Week ago Low 0 2 4 6 8 High (pct pts) Hong Kong dollar .1287 7.7705 0.3
UK pound 1.4422 .6934 2.2
India rupee .01487 67.268 1.6
Federal-funds rate target 0.25-0.5 0.25-0.5 0.00 l 0.50 0.25 Corporate Borrowing Rates and Yields Indonesia rupiah .0000734 13632 1.5 Middle East/Africa
Prime rate* 3.50 3.50 3.25 l 3.50 0.25 Yield (%) 52-Week Total Return (%) Japan yen .009185 108.87 9.5 Bahrain dinar 2.6539 .3768 0.1
Bond total return index Close Last Week ago High Low 52-wk 3-yr Kazakhstan tenge .002966 337.15 0.5 Egypt pound .1126 8.8809 13.4
Libor, 3-month 0.68 0.67 0.28 l 0.69 0.40
Macau pataca .1249 8.0039 unch Israel shekel .2589 3.8631 0.8
Money market, annual yield 0.25 0.25 0.22 l 0.36 -0.21 Treasury, Ryan ALM 1464.777 1.552 1.554 1.957 1.351 5.203 3.249
Malaysia ringgit .2410 4.1495 3.6 Kuwait dinar 3.3123 .3019 0.5
Five-year CD, annual yield 1.24 1.24 1.24 l 1.53 0.01 10-yr Treasury, Ryan ALM 1769.697 1.811 1.823 2.480 1.642 0.064 3.643 New Zealand dollar .6808 1.4689 0.4 Oman sul rial 2.5972 .3850 unch
30-year mortgage, fixed 3.65 3.93 3.56 l 4.22 -0.56 DJ Corporate 361.713 2.894 2.891 3.462 2.778 6.451 4.276 Pakistan rupee .00956 104.650 0.2 Qatar rial .2747 3.640 0.1
15-year mortgage, fixed 2.87 3.20 2.79 l 3.42 -0.51 Aggregate, Barclays Capital 1894.110 2.210 2.200 2.630 2.090 3.934 2.949 Philippines peso .0215 46.584 0.6 Saudi Arabia riyal .2666 3.7503 0.1
Jumbo mortgages, $417,000-plus 4.39 4.61 4.14 l 4.97 0.09 Singapore dollar .7268 1.3759 3.0 South Africa rand .0642 15.5742 0.6
High Yield 100, Merrill Lynch 2496.333 6.553 6.408 8.696 5.701 3.029 1.823 South Korea won .0008426 1186.81 0.9
Five-year adj mortgage (ARM) 3.21 3.26 3.05 l 3.86 0.24 Close Net Chg % Chg YTD%Chg
Fixed-Rate MBS, Barclays 1951.630 2.390 2.380 2.900 2.260 3.247 3.168 Sri Lanka rupee .0067600 147.93 2.6
New-car loan, 48-month 3.16 3.20 2.96 l 3.38 0.52 Taiwan dollar .03067 32.608 0.9 WSJ Dollar Index 87.61 0.05 0.05 2.84
Muni Master, Merrill 511.041 1.548 1.548 2.099 1.440 5.727 3.554
HELOC, $30,000 4.67 4.58 4.29 l 5.01 -0.56
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 719.902 6.026 6.061 7.128 5.891 6.078 3.490 Sources: Tullett Prebon, WSJ Market Data Group
banks. Excludes closing costs.
Sources: SIX Financial Information; WSJ Market Data Group; Bankrate.com Sources: J.P. Morgan; Ryan ALM; S&P Dow Jones Indices; Barclays Capital; Merrill Lynch

Commodities Thursday 52-Week YTD

Pricing trends on someClose
raw materials, or commodities
Net chg % Chg High Low % Chg % chg

DJ Commodity 532.15 4.91 0.93 571.61 420.23 -3.88 17.26

ONLINE
WSJ
Reuters-Jefferies CRB 188.03 1.20 0.64 228.18 155.01 -15.17 6.67
Crude oil, $ per barrel 49.17 0.16 0.33 61.43 26.21 -15.22 32.75
Real-time U.S. stock quotes are available on WSJ.com. Track most-active stocks, new highs/lows, mutual funds and
.COM Natural gas, $/MMBtu 2.405 0.024 1.01 2.93 1.64 -8.42 2.91
ETFs. Plus, get deeper money-flows data and email delivery of key stock-market data. All are available free at
Gold, $ per troy oz. 1209.80 -2.10 -0.17 1294.70 1050.80 2.97 14.10
WSJMarkets.com
C6 | Friday, June 3, 2016 THE WALL STREET JOURNAL.

COMMODITIES, CREDIT MARKETS & FUNDS

Futures Contracts | WSJ.com/commodities Contract Open Open
Contract
High hilo Low Settle Chg
Open
interest Open
Contract
High hilo Low Settle Chg
Open
interest
Open High hilo Low Settle Chg interest
Metal & Petroleum Futures Rough Rice (CBT)-2,000 cwt.; $ per cwt. 10 Yr. Del. Int. Rate Swaps (CBT)-$100,000; pts 32nds of 100%
NY Harbor ULSD (NYM)-42,000 gal.; $ per gal. July 1104.50 1140.50 1104.50 1137.00 37.50 6,457 June 104.938 105.203 104.844 105.094 .250 25,690
Contract Open July 1.5030
1.5298 1.4830 1.5088 .0099 133,321 Sept 1131.50 1165.50 1131.50 1163.50 38.00 2,410 Sept 104.469 104.750 s 104.438 104.656 .250 2,452
Open High hi lo Low Settle Chg interest Aug 1.5087
1.5356 1.4907 1.5157 .0083 56,004 Wheat (CBT)-5,000 bu.; cents per bu. 1 Month Libor (CME)-$3,000,000; pts of 100%
Copper-High (CMX)-25,000 lbs.; $ per lb. Gasoline-NY RBOB (NYM)-42,000 gal.; $ per gal. July 473.50 487.00 472.75 485.50 11.75 223,419 June 99.5225 99.5225 99.5225 99.5225 .0075 1,405
June 2.0640 2.0740 2.0640 2.0695 0.0030 2,020 July 1.6238 1.6452 1.6009 1.6346 .0193 134,437 Sept 484.75 497.75 484.00 496.25 11.25 80,726 July 99.4300 99.4400 99.4250 99.4275 .0025 962
July 2.0710 2.0780 2.0580 2.0700 0.0030 143,517 Sept 1.6049 1.6257 1.5837 1.6162 .0176 57,166 Wheat (KC)-5,000 bu.; cents per bu. Eurodollar (CME)-$1,000,000; pts of 100%
Gold (CMX)-100 troy oz.; $ per troy oz. Natural Gas (NYM)-10,000 MMBtu.; $ per MMBtu. July 455.50 468.75 455.00 464.50 8.50 133,626 June 99.2825 99.2900 99.2775 99.2775 .0025 1,132,801
June 1212.40 1217.00 1209.60 1209.80 2.10 9,333 July 2.369 2.424 2.361 2.405 .024 331,221 Dec 495.00 508.50 495.00 504.75 9.25 40,653 Sept 99.1550 99.1700 99.1500 99.1550 1,155,998
Aug 1215.90 1220.00 1212.00 1212.60 2.10 353,717 Aug 2.448 2.500 2.443 2.482 .029 86,879 99.0350 99.0500 99.0250 99.0400 .0050 1,416,269
Wheat (MPLS)-5,000 bu.; cents per bu. Dec
Oct 1218.50 1222.50 1215.40 1215.50 2.10 27,029 Sept 2.490 2.537 2.484 2.524 .032 123,170 Dec'17 98.7350 98.7700 98.7300 98.7550 .0200 1,106,129
July 528.00 537.75 528.00 532.25 3.50 23,335
Dec 1221.60 1225.20 1217.70 1218.30 2.10 57,202 Oct 2.576 2.614 2.560 2.602 .031 111,716 Sept 537.25 545.50 537.25 540.75 4.00 12,050
Feb'17 1221.80 1227.00 1220.90 1220.70 2.20 8,166 Nov 2.756 2.785 s 2.740 2.777 .032 53,151
Dec 1238.00 1238.00 1231.80 1231.80 2.30 7,424 Jan'17 3.136 3.163 3.123 3.160 .029 88,548
Cattle-Feeder (CME)-50,000 lbs.; cents per lb. Currency Futures
Aug 146.275 147.450 145.550 146.400 .025 24,235 Japanese Yen (CME)-12,500,000; $ per 100
Palladium (NYM) - 50 troy oz.; $ per troy oz. 142.825 143.725 .9185 .0056
June 542.00 542.00 535.85 535.60 11.70 86 Agriculture Futures Oct 143.325 144.500 .425 4,931 June .9135 .9217 .9127 146,488
Corn (CBT)-5,000 bu.; cents per bu. Cattle-Live (CME)-40,000 lbs.; cents per lb. Sept .9166 .9248 .9160 .9217 .0057 7,995
Sept 547.00 549.65 532.65 534.45 12.30 21,941
Dec 540.00 540.00 535.00 535.40 12.30 371 July 413.75 419.50 s 412.50 415.25 1.50 601,514 June 121.600 122.075 121.225 121.725 .300 33,969 Canadian Dollar (CME)-CAD 100,000; $ per CAD
Dec 416.25 419.75 s 414.75 416.75 .50 354,948 Aug 117.575 118.650 117.100 117.650 .200 118,729 June .7646 .7659 .7607 .7626 .0022 111,694
Platinum (NYM)-50 troy oz.; $ per troy oz. .7627 .0022
June 973.20 983.30 973.20 958.40 11.80 5 Oats (CBT)-5,000 bu.; cents per bu. Hogs-Lean (CME)-40,000 lbs.; cents per lb. Sept .7646 .7660 .7609 8,367
July 973.50 978.90 958.50 960.10 11.80 51,209 July 190.75 191.75 187.75 190.75 .50 6,948 June 81.275 82.125 80.925 82.025 .875 20,558 British Pound (CME)-62,500; $ per
Dec 214.50 215.50 212.50 215.25 .75 2,000 July 83.000 84.475 s 82.925 84.450 1.650 61,525 June 1.4412 1.4473 1.4407 1.4429 .0023 231,690
Silver (CMX)-5,000 troy oz.; $ per troy oz. 1.4421 1.4442 .0024
June 16.025 16.025 16.025 16.005 0.099 549 Soybeans (CBT)-5,000 bu.; cents per bu. Lumber (CME)-110,000 bd. ft., $ per 1,000 bd. ft. Sept 1.4421 1.4485 12,639
July 15.985 16.065 15.925 16.025 0.098 122,920 July 1101.25 1146.00 s 1100.75 1144.25 44.50 367,261 July 297.00 299.70 295.80 296.80 .30 3,581 Swiss Franc (CME)-CHF 125,000; $ per CHF
Nov 1069.50 1088.25 s 1068.50 1081.75 13.25 298,246 Sept 304.50 307.30 304.10 305.80 .30 1,579 June 1.0123 1.0147 1.0093 1.0095 .0021 57,277
Crude Oil, Light Sweet (NYM)-1,000 bbls.; $ per bbl. 1.0142 1.0144 .0020
July 48.90 49.47 47.97 49.17 0.16 525,386 Soybean Meal (CBT)-100 tons; $ per ton. Milk (CME)-200,000 lbs., cents per lb. Sept 1.0167 1.0194 1,680
Aug 49.35 49.95 48.46 49.66 0.17 186,007 July 400.40 419.00 399.50 418.30 19.20 155,350 June 12.87 13.09 12.84 13.07 .20 4,798 Australian Dollar (CME)-AUD 100,000; $ per AUD
Sept 49.86 50.38 48.92 50.10 0.19 134,956 Dec 375.90 382.40 s 375.30 379.30 3.80 86,202 July 13.05 13.58 13.04 13.49 .40 5,052 June .7250 .7268 .7198 .7220 .0032 106,677
Oct 50.21 50.66 49.26 50.43 0.20 79,414 Soybean Oil (CBT)-60,000 lbs.; cents per lb. Cocoa (ICE-US)-10 metric tons; $ per ton. Sept .7227 .7242 .7175 .7196 .0032 6,312
Dec 50.70 51.27 49.89 51.03 0.23 220,135 July 32.14 32.63 32.14 32.26 .07 176,996 July 3,029 3,077 3,023 3,057 11 59,458 Dec .7160 .7216 .7160 .7176 .0032 153
Dec'17 51.82 52.36 51.18 52.19 0.25 137,696 Dec 32.72 33.14 32.72 32.88 .13 91,796 Sept 3,017 3,057 3,012 3,042 15 68,482 Mexican Peso (CME)-MXN 500,000; $ per MXN
Coffee (ICE-US)-37,500 lbs.; cents per lb. June .05391 .05405 .05347 .05353 .00049 99,141
July 122.50 124.40 122.15 123.00 1.10 83,478 Sept .05339 .05351 .05296 .05300 .00049 47,923
Sept 124.55 126.35 124.20 125.00 1.15 50,788
Bonds | WSJ.com/bonds Sugar-World (ICE-US)-112,000 lbs.; cents per lb.
Euro (CME)-125,000; $ per
June 1.1189 1.1224 1.1149 1.1153 .0033 332,768
July 17.39 18.18 s 17.33 18.08 .67 352,033 Sept 1.1227 1.1262 1.1189 1.1193 .0033 22,362
Tracking Bond Benchmarks Oct 17.57 18.19 s 17.53 18.10
Sugar-Domestic (ICE-US)-112,000 lbs.; cents per lb.
.50 291,534
Index Futures
Return on investment and spreads over Treasurys and/or yields paid to investors compared with 52-week July 26.35 26.90 26.35 26.80 .31 1,785 Mini DJ Industrial Average (CBT)-$5 x index
Sept 26.90 27.30 26.80 26.91 .01 1,512
highs and lows for different types of bonds June 17775 17833 17692 17825 46 118,715
Cotton (ICE-US)-50,000 lbs.; cents per lb. Sept 17684 17733 17594 17729 48 3,934
Total return Yield (%), 52-Week Range l Latest July 63.17 63.67 62.81 62.87 .30 89,768
close YTD total return (%) Index Latest Low 0 5 10 15 20 25 High Dec 63.01 63.51 62.60 62.67 .33 92,372
S&P 500 Index (CME)-$250 x index
June 2096.80 2104.50 s 2087.00 2103.80 5.90 82,351
1894.11 3.6 Broad market Barclays Aggregate 2.210 2.090 l 2.630 Orange Juice (ICE-US)-15,000 lbs.; cents per lb. Sept 2084.00 2096.00 s 2079.50 2095.40 5.90 2,682
July 153.70 158.00 s 153.25 157.05 2.80 10,729
Mini S&P 500 (CME)-$50 x index
2610.73 5.5 U.S. Corporate Barclays Capital 3.140 3.040 l 3.710 Sept 154.25 157.85 s 153.65 157.10 2.90 3,209
June 2096.75 2104.75 s 2086.75 2103.75 5.80 2,929,830
2507.02 3.6 Intermediate 2.560 2.440 l 3.120 Sept 2088.75 2096.00 s 2078.25 2095.50 5.90 78,674
Interest Rate Futures Mini S&P Midcap 400 (CME)-$100 x index
3475.37 10.0 Long term 4.440 4.390 l 5.130 Treasury Bonds (CBT)-$100,000; pts 32nds of 100% June 1498.10 1508.10 s 1490.20 1507.80 9.10 84,862
545.91 4.4 Double-A-rated 2.310 2.220 l 2.700 June 165-060 166-130 165-030 166-020 1-04.0 25,123
Sept 163-260 165-000 163-220 164-210 1-04.0 523,666
Mini Nasdaq 100 (CME)-$20 x index
656.10 6.1 Triple-B-rated 3.630 3.540 l 4.450 June 4520.5 4533.0 4486.3 4532.3 10.8 238,698
Treasury Notes (CBT)-$100,000; pts 32nds of 100% Sept 4514.5 4526.5 4479.5 4524.5 10.8 3,933
357.40 8.1 High Yield Constrained Merrill Lynch 7.458 6.183 l 10.099 June 129-215 130-010 129-205 129-295 9.0 168,498 Mini Russell 2000 (ICE-US)-$100 x index
Sept 129-190 129-315 129-180 129-280 10.5 2,473,184 June 1160.80 1171.90 s 1157.00 1171.10 9.60 397,186
324.39 16.1 Triple-C-rated 15.417 10.904 l 21.753 5 Yr. Treasury Notes (CBT)-$100,000; pts 32nds of 100% Sept 1154.70 1165.80 s 1153.30 1166.20 9.70 671
2496.33 5.2 High Yield 100 6.553 5.701 l 8.696 June 120-135 120-197 120-125 120-177 4.7 141,434 Dec 1152.60 1161.30 s 1152.60 1162.20 9.70 15
Sept 119-317 120-065 119-305 120-042 5.2 2,377,573 Mini Russell 1000 (ICE-US)-$100 x index
326.12 7.3 Global High Yield Constrained 7.064 6.102 l 9.437
2 Yr. Treasury Notes (CBT)-$200,000; pts 32nds of 100% June 1158.80 1166.10 s 1156.60 1165.90 3.00 6,934
273.73 4.0 Europe High Yield Constrained 4.322 4.087 l 6.500 June 109-025 109-035 109-020 109-030 .7 63,798 U.S. Dollar Index (ICE-US)-$1,000 x index
Sept 108-287 108-302 108-280 108-295 1.0 947,944 June 95.40 95.58 95.15 95.57 .11 53,825
1615.60 2.1 U.S Agency Barclays 1.440 1.240 l 1.680 Sept 95.40 95.58 95.18 95.57 .10 7,604
30 Day Federal Funds (CBT)-$5,000,000; 100 - daily avg.
1450.83 1.5 10-20 years 1.240 1.010 l 1.480 June 99.608 99.613 99.605 99.608 77,805
July 99.575 99.580 99.570 99.570 253,648 Source: SIX Financial Information
3231.93 7.4 20-plus years 2.860 2.720 l 3.370
1951.63 2.3 Mortgage-Backed Barclays 2.390 2.260 l 2.900
1925.64 2.0 Ginnie Mae (GNMA) 2.310 2.190 l 2.860 Cash Prices Mutual Funds | WSJ.com/fundresearch
1142.82 2.4 Fannie mae (FNMA) 2.410 2.270 l 2.910 Thursday, June 2, 2016 Net YTD
Explanatory Notes Fund NAV Chg % Ret
1758.94 2.5 Freddie Mac (FHLMC) 2.430 2.300 l 2.930 Data provided by
These prices reflect buying and Top 250 mutual-funds listings for Nasdaq-published share classes with MCapVal 27.98 +0.13 12.2
511.04 2.3 Muni Master Merrill Lynch 1.548 1.440 l 2.099 selling of a variety of actual or net assets of at least $500 million each. NAV is net asset value. N Horiz 42.93 +0.46 1.1
physical commodities in the Percentage performance figures are total returns, assuming reinvestment N Inc 9.59 +0.01 3.6
356.74 2.4 7-12 year 1.577 1.398 l 2.144 of all distributions and after subtracting annual expenses. Figures dont
marketplaceseparate from the reflect sales charges (loads) or redemption fees. NET CHG is change in OverS SF r 8.96 -0.01 -0.3
397.61 2.9 12-22 year 1.895 1.823 l 2.636 futures price on an exchange, which NAV from previous trading day. YTD%RET is year-to-date return. 3-YR R2015 14.19 +0.03 3.7
382.62 4.2 22-plus year 2.410 2.356 l 3.351 reflects what the commodity might %RET is trailing three-year return annualized. R2020 20.36 +0.05 3.4
e-Ex-distribution. f-Previous days quotation. g-Footnotes x and s apply. R2025 15.43 +0.04 3.2
2334.85 4.2 Yankee Barclays 2.680 2.580 l 3.110 be worth in future months. j-Footnotes e and s apply. k-Recalculated by Lipper, using updated data. R2030 22.45 +0.07 2.9
Thursday p-Distribution costs apply, 12b-1. r-Redemption charge may apply. s-Stock
R2035 16.20 +0.05 2.6
544.04 4.3 Global Government J.P. Morgan 1.110 1.080 l 1.780 split or dividend. t-Footnotes p and r apply. v-Footnotes x and e apply.
R2040 23.12 +0.08 2.4
Energy x-Ex-dividend. z-Footnote x, e and s apply. NA-Not available due to
770.75 2.0 Canada 1.480 1.360 l 1.970 Propane,tet,Mont Belvieu-g 0.4935 incomplete price, performance or cost data. NE-Not released by Lipper; SmCapStk 40.58 +0.27 5.1
data under review. NN-Fund not tracked. NS-Fund didnt exist at start of Value 32.16 +0.06 2.9
369.91 3.4 EMU 0.878 0.820 l 1.609 Butane,normal,Mont Belvieu-g 0.6359 period.
NaturalGas,HenryHub-i 2.300 Schwab Funds
711.02 4.2 France 0.640 0.580 l 1.360 NaturalGas,TranscoZone3-i 2.280 Thursday, June 2, 2016 S&P Sel 32.81 +0.10 4.0
515.53 4.3 Germany 0.230 0.190 l 1.040 NaturalGas,TranscoZone6NY-i 1.830 TIAA/CREF Funds
Net YTD Net YTD
NaturalGas,PanhandleEast-i 2.070 Fund NAV Chg % Ret Fund NAV Chg % Ret EqIdxInst 15.68 +0.06 4.0
294.98 6.0 Japan 0.100 0.070 l 0.890 NaturalGas,Opal-i 2.150 Tweedy Browne Fds
American Century Inv Fidelity Spartan Adv
566.25 4.3 Netherlands 0.400 0.350 l 1.130 NaturalGas,MarcellusNE PA-i 1.490
Ultra 34.97 +0.08 -0.1 500IdxAd 74.29 +0.22 4.0
GblValue 24.63 -0.01 0.7
NaturalGas,HaynesvilleN.LA-i 2.220 VANGUARD ADMIRAL
881.22 6.8 U.K. 1.780 1.760 l 2.480 American Funds Cl A ExtMktAd r 51.72 +0.37 4.0
Coal,C.Aplc.,12500Btu,1.2SO2-r,w 40.500 500Adml 194.95 +0.57 4.0
7.3 AmcpA p 27.01 +0.11 4.1 IntAd r 35.46 -0.08 -1.1
719.90 Emerging Markets ** 6.026 5.891 l 7.128 Coal,PwdrRvrBsn,8800Btu,0.8SO2-r,w 8.800 BalAdml 30.26 +0.09 4.1
AMutlA p 35.97 +0.12 6.8 TotMktAd r 60.71 +0.23 4.0
CAITAdml 12.00 ... 2.4
*Constrained indexes limit individual issuer concentrations to 2%; the High Yield 100 are the 100 largest bonds In U.S. - dollar terms Euro-zone bonds Metals BalA p 24.68 +0.07 4.0 First Eagle Funds
CapOpAdml r 118.57 +0.61 -0.1
Gold, per troy oz BondA p 12.92 +0.02 3.3 GlbA 54.29 -0.15 5.7
** EMBI Global Index Sources: S&P Dow Jones Indices; Merrill Lynch; Barclays Capital; J.P.Morgan EMAdmr 28.21 +0.09 3.4
Engelhard industrial 1214.71 CapIBA p 58.28 +0.19 5.3 FMI Funds
EqIncAdml 65.45 +0.17 6.4
Engelhard fabricated 1305.81 CapWGrA 44.14 +0.19 2.3 LgCap 19.74 +0.04 6.1
ExtndAdml 65.87 +0.48 4.0
Global Government Bonds: Mapping Yields Handy & Harman base
Handy & Harman fabricated
1212.40 EupacA p
1345.76 FdInvA p
45.02
52.66
+0.12 -0.8 FPA Funds
+0.18 4.2 FPACres 31.63 -0.03 1.8
GNMAAdml 10.80 ... 2.4
Yields and spreads over or under U.S. Treasurys on benchmark two-year and 10-year government bonds in GrwthAdml 55.97 +0.19 2.5
LBMA Gold Price AM *1216.25 GwthA p 42.04 +0.20 1.8 FrankTemp/Franklin A
HlthCareAdml r 88.60 +1.08 -2.3
selected other countries; arrows indicate whether the yield rose(s) or fell (t) in the latest session LBMA Gold Price PM *1214.50 HI TrA p 9.79 +0.01 7.4 CA TF A p 7.66 +0.02 3.7
Krugerrand,wholesale-e 1258.92 ICAA p HYCorAdml r 5.67 ... 4.8
Country/ Yield (%) Spread Under/Over U.S. Treasurys, in basis points 35.36 +0.13 6.4 Fed TF A p 12.45 +0.01 2.5
Coupon (%) Maturity, in years Latest(l) 0 20 40 60 80 100 120 Previous Month ago Year ago Latest Prev Year ago Maple Leaf-e 1271.03 IncoA p InfProAd 26.30 +0.08 4.3
21.02 +0.05 4.7 Growth A p 75.25 +0.25 2.6
American Eagle-e 1271.03 N PerA p IntlGrAdml 67.03 +0.25 ...
0.875 U.S. 2 0.891 t l 0.907 0.798 0.657 35.92 +0.09 -0.3 IncomeA p 2.16 ... 5.8
ITBondAdml 11.65 +0.03 4.6
Mexican peso-e 1467.50 NEcoA p 35.52 +0.25 -1.2 RisDv A p 51.39 +0.21 8.0
1.625 10 1.811 t l 1.837 1.874 2.264 Austria crown-e 1189.53 NwWrldA ITIGradeAdml 9.94 +0.02 4.4
50.84 +0.21 1.7 FrankTemp/Franklin C
3.250 Australia 2 1.649 t l 1.677 1.883 1.929 75.8 77.1 127.3 Austria phil-e 1271.03 LTGradeAdml 10.63 +0.05 9.6
SmCpA p 44.30 +0.24 1.5 Income C t 2.18 ... 5.5
Silver, troy oz. TxExA p 13.27 ... 2.7 FrankTemp/Temp A
MidCpAdml 154.97 +0.90 4.5
4.250 10 2.279 t l 2.305 2.533 2.750 46.8 46.8 48.6 Engelhard industrial 15.9500 WshA p MuHYAdml 11.56 ... 3.7
40.00 +0.16 4.6 GlBond A p 11.21 -0.02 -2.0
1.000 France 2 -0.437 t l -0.431 -0.395 -0.134 -132.8 -133.8 -79.0 Engelhard fabricated 19.1400 MuIntAdml 14.43 ... 2.4
AMG Managers Funds Growth A p 21.96 +0.04 0.2
Handy & Harman base 16.0550 MuLTAdml 11.97 +0.01 3.4
0.500 10 0.461 t l 0.475 0.606 1.007 -135.0 -136.2 -125.7 YacktmanFd 22.17 +0.04 6.2 FrankTemp/Temp Adv
Handy & Harman fabricated 20.0690 MuLtdAdml 11.04 ... 0.8
11.0734 AQR Funds
LBMA spot price GlBondAdv p 11.17 -0.02 -1.8
0.000 Germany 2 -0.507 s l -0.512 -0.485 -0.188 -139.8 -141.8 -84.5 +0.09 -1.9 Harbor Funds MuShtAdml 15.82 ... 0.5
(U.S.$ equivalent) 15.9800 MgdFutStrI 9.99
PrmcpAdml r 104.21 +0.32 0.9
0.500 10 0.117 t l 0.140 0.250 0.721 -169.4 -169.8 -154.4 Coins,wholesale $1,000 face-a 13385 Artisan Funds CapApInst 58.80 +0.23 -3.3
REITAdml r 119.31 +0.57 6.8
Other metals Intl Inv 28.01 +0.09 -2.3 IntlInst r 60.57 +0.07 1.9
4.500 Italy 2 -0.055 t l -0.049 -0.035 0.181 -94.5 -95.6 -47.6 Invesco Funds A SmCapAdml 56.10 +0.38 6.0
LBMA Platinum Price PM *976.0 Baird Funds STBondAdml 10.54 +0.01 1.7
2.000 10 1.378 t l 1.387 1.481 2.119 -43.3 -45.0 -14.5 Platinum,Engelhard industrial 968.0 AggBdInst 10.92 +0.02 3.9 EqIncA 9.87 +0.02 3.0
+0.02 4.4 John Hancock Class 1 STIGradeAdml 10.70 +0.01 2.2
Platinum,Engelhard fabricated 1068.0 CorBdInst 11.20
0.100 Japan 2 -0.242 s l -0.245 -0.240 0.000 -113.3 -115.1 -65.7 Palladium,Engelhard industrial 543.0 BlackRock Funds A LSBalncd 14.57 +0.03 2.7 TotBdAdml 10.92 +0.02 3.7
TotIntBdIdxAdm 21.87 +0.02 4.2
0.100 10 -0.112 s l -0.118 -0.110 0.417 -192.3 -195.5 -184.7 Palladium,Engelhard fabricated 643.0 GlblAlloc p 17.87 ... 0.2 LSGwth 15.12 +0.04 2.0
Aluminum, LME, $ per metric ton *1544.0 BlackRock Funds C John Hancock Instl TotIntlAdmIdx r 24.42 ... 1.1
4.500 Spain 2 -0.095 s l -0.102 -0.069 0.079 -98.6 -100.9 -57.8 Copper,Comex spot 2.0695 GlblAlloc t 16.24 +0.01 -0.1 DispValMCI 20.14 +0.08 5.2 TotStAdml 52.58 +0.20 4.0
1.950 10 1.498 t l 1.503 1.581 2.048 -33.4 -21.6 Iron Ore, 62% Fe CFR China-s 47.9 BlackRock Funds Inst JPMorgan Inst Class TxMIn r 11.74 -0.01 -0.2
-31.3
Shredded Scrap, US Midwest-s,w 270 EqtyDivd 21.80 +0.05 4.3 MdCpVal 36.20 +0.20 6.6 ValAdml 33.16 +0.11 4.9
1.250 U.K. 2 0.380 t l 0.410 0.522 0.729 -51.1 -49.6 7.2 Steel, HRC USA, FOB Midwest Mill-s 622 GlblAlloc 17.99 +0.01 0.3 JPMorgan R Class WdsrllAdml 62.21 +0.22 4.7
2.000 10 1.346 t l 1.375 1.600 1.997 -46.2 -26.7 HiYldBd 7.35 +0.01 5.6 CoreBond 11.83 +0.02 3.4 WellsIAdml 62.33 +0.13 5.6
-46.5 Fibers and Textiles StratIncOpptyIns 9.69 ... 0.2 JPMorgan Select Cls WelltnAdml 66.04 +0.18 4.6
Source: Tullett Prebon Burlap,10-oz,40-inch NY yd-n,w 0.4800 Dimensional Fds CoreBond 11.82 +0.03 3.4 WndsrAdml 66.01 +0.24 2.2
0.6312 5GlbFxdInc
Corporate Debt Cotton,1 1/16 std lw-mdMphs-u
Cotlook 'A' Index-t *72.75 EmgMktVa
11.11
21.45
+0.01 2.3 ShtDurBnd
+0.10 5.4 USLgCpCorPls 27.30
10.87 +0.01 0.9
+0.11 1.8
VANGUARD FDS
DivdGro 23.35 +0.06 4.5
Price moves by a companys debt in the credit markets sometimes mirror and sometimes anticipate moves in Hides,hvy native steers piece fob-u 73.750
EmMktCorEq 16.47 +0.07 4.8 Lazard Instl GNMA 10.80 ... 2.4
that same companys share price. Heres a look at both for two companies in the news. Wool,64s,staple,Terr del-u,w n.a. HlthCare r 210.01 +2.57 -2.3
IntlCoreEq 11.50 -0.01 1.4 EmgMktEq 14.60 +0.05 8.6
IntSmCo 17.70 +0.01 3.3 Loomis Sayles Fds IntlVal 31.18 +0.05 0.3
Investment-grade spreads that tightened the most Grains and Feeds INSTTRF2020 19.85 +0.04 3.4
Barley,top-quality Mnpls-u n.a. IntSmVa 18.91 +0.01 1.7 LSBondI 13.39 ... 4.7
Spread*, in basis points Stock Performance INSTTRF2025 19.72 +0.05 3.4
Issuer Symbol Coupon (%) Maturity Current One-day change Last week Close ($) % chg Bran,wheat middlings, KC-u 60 US CoreEq1 17.86 +0.07 4.5 Lord Abbett A
Corn,No. 2 yellow,Cent IL-bp,u 3.9800 US CoreEq2 17.04 +0.07 4.7 ShtDurIncmA p 4.33 ... 2.2 INSTTRF2030 19.56 +0.04 3.3
Enterprise Products Operating EPD 7.034 Jan. 15, 68 129 98 n.a. Corn gluten feed,Midwest-u,w 100.1 US Small 29.78 +0.14 5.3 Lord Abbett F INSTTRF2035 19.41 +0.04 3.1
Genworth Financial GNW 7.625 Sept. 24, 21 1013 28 1034 3.57 0.56 Corn gluten meal,Midwest-u,w 497.9 US SmCpVal 32.01 +0.08 5.2 ShtDurIncm 4.33 ... 2.2 LifeCon 18.41 +0.03 3.6
Hunt HUNTCO 9.625 March 1, 21 847 18 n.a. ... ... Cottonseed meal-u,w 260 USLgVa 32.11 +0.11 4.8 Metropolitan West LifeGro 28.12 +0.06 3.2
Hominy feed,Cent IL-u,w 90 Dodge & Cox TotRetBd 10.85 +0.01 2.9 LifeMod 23.84 +0.04 3.4
Air Lease AL 2.625 Sept. 4, 18 191 16 n.a. 29.47 0.64 Meat-bonemeal,50% pro Mnpls-u,w 318 Balanced PrmcpCor 21.27 +0.07 2.2
96.43 +0.27 4.2 TotRetBdI 10.85 +0.01 3.0
Penske Truck Leasing PENSKE 3.375 Feb. 1, 22 190 14 210 ... ... Oats,No.2 milling,Mnpls-u 2.5325 Income 13.64 +0.02 3.7 TRBdPlan 10.22 +0.01 3.0 SelValu r 27.04 +0.09 4.6
WalMart Stores WMT 4.250 April 15, 21 30 14 n.a. 70.95 0.64 Rice, 5% Broken White, Thailand-l,w 414.00 Intl Stk 36.07 +0.17 -1.1 MFS Funds Class A STAR 23.97 +0.08 2.9
Rice, Long Grain Milled, No. 2 AR-u,w 22.13 Stock +0.57 4.0 ValueA p 34.93 +0.07 6.9 STIGrade 10.70 +0.01 2.2
Dominion Resources D 3.900 Oct. 1, 25 143 13 156 71.49 0.27 Sorghum,(Milo) No.2 Gulf-u n.a.
165.05
Encana ECACN 6.500 May 15, 19 476 13 494 ... ... DoubleLine Funds MFS Funds Class I TgtRe2015 14.70 +0.02 3.3
SoybeanMeal,Cent IL,rail,ton48%-u 424.80 TgtRe2020 28.07 +0.05 3.4
TotRetBdI NA ... NA ValueI 35.13 +0.08 7.0
Soybeans,No.1 yllw IL-bp,u 11.1700
And spreads that widened the most Wheat,Spring14%-pro Mnpls-u 6.0475 TotRetBdN NA ... NA MFS Funds Instl TgtRe2025 16.14 +0.03 3.3
IntlEq 20.24 -0.01 -1.6 TgtRe2030 28.61 +0.06 3.2
Wheat,No.2 soft red,St.Louis-bp,u 4.8800 Federated Instl
Royal Bank of Scotland RBS 7.500 Aug. 10, 49 670 47 649 7.02 0.57 +0.01 9.9 Mutual Series TgtRe2035 17.36 +0.04 3.1
Wheat - Hard - KC (USDA) $ per bu-u 4.4450 StraValDivIS 6.13
CHC Helicopter S.A. HELI 9.250 Oct. 15, 20 3397 44 3305 ... ... Wheat,No.1soft white,Portld,OR-u 5.3175 Fidelity Advisor I GlbDiscA 29.29 +0.10 1.5 TgtRe2040 29.30 +0.06 3.0
Signet UK Finance SIG 4.700 June 15, 24 346 30 322 NwInsghtI 27.06 +0.07 2.6 GlbDiscz 29.83 +0.11 1.6 TgtRe2045 18.31 +0.04 3.0
Goldman Sachs GS 5.375 March 15, 20 102 27 105 159.28 0.43 Food Fidelity Freedom Oakmark Funds Cl I TgtRe2050 29.33 +0.06 2.9
Beef,carcass equiv. index FF2020 14.69 +0.04 3.0 EqtyInc 29.13 +0.01 2.0 TgtRetInc 12.83 +0.02 3.4
Kohl's KSS 5.550 July 17, 45 408 18 424 37.38 3.35 choice 1-3,600-900 lbs.-u 200.06 FF2025 12.54 +0.04 2.8 Oakmark 64.93 +0.05 3.3 TotIntBdIxInv 10.94 +0.01 4.2
Lloyds Banking LLOYDS 7.500 June 27, 49 520 18 n.a. ... ... select 1-3,600-900 lbs.-u 181.02 FF2030 15.26 +0.05 2.6 OakmrkInt 20.30 -0.08 -5.0 WellsI 25.73 +0.06 5.6
Citigroup C 5.875 March 27, 49 410 16 421 46.97 0.06 Broilers,dressed 'A'-u 1.1200 FreedomK2020 13.66 +0.03 3.0 Old Westbury Fds Welltn 38.23 +0.10 4.6
HSBC Holdings HSBC 4.875 Jan. 14, 22 160 16 150 32.51 0.68 Broilers, National comp wghtd-u,w 0.9827 FreedomK2025 14.22 +0.04 2.9 LrgCpStr 12.71 ... 1.9 WndsrII 35.05 +0.13 4.6
Butter,AA Chicago 2.1000 FreedomK2030 14.38 +0.05 2.7 Oppenheimer Y VANGUARD INDEX FDS
High-yield issues with the biggest price increases Cheddar cheese,bbl,Chicago
Cheddar cheese,blk,Chicago
143.00 FreedomK2035 14.76
139.50
+0.04 2.5 DevMktY 30.63 +0.15 2.1 500 194.92 +0.57 3.9
Bond Price as % of face value Stock Performance FreedomK2040 14.80 +0.05 2.5 IntGrowY 36.27 +0.04 1.1 ExtndIstPl 162.56 +1.20 4.0
Milk,Nonfat dry,Chicago lb. 81 Parnassus Fds
Issuer Symbol Coupon (%) Maturity Current One-day change Last week Close ($) % chg Fidelity Invest TotBd2 10.88 +0.02 3.7
Cocoa,Ivory Coast-w 3404
Coffee,Brazilian,Comp 1.2594 Balanc 21.74 +0.08 2.9 ParnEqFd 38.45 +0.13 4.4 TotIntl 14.60 ... 1.1
Weatherford International WFT 6.350 June 15, 17 105.000 3.88 100.500 5.89 6.51 +0.08 2.9 PIMCO Fds Instl TotSt 52.55 +0.19 3.9
Coffee,Colombian, NY 1.4269 BalancedK 21.74
BonTon Department Stores BONT 8.000 June 15, 21 48.250 3.25 40.500 +0.29 -2.1 AllAsset NA ... NA VANGUARD INSTL FDS
Eggs,large white,Chicago-u 0.3950 BluCh 67.55
Advanced Micro Devices AMD 7.000 July 1, 24 81.750 2.55 75.500 4.24 4.29 Flour,hard winter KC 14.00 Contra 98.85 +0.28 0.7 ShortT NA ... NA BalInst 30.26 +0.09 4.1
Chesapeake Energy CHK 6.625 Aug. 15, 20 67.250 2.21 64.500 4.25 2.75 Hams,17-20 lbs,Mid-US fob-u n.a. ContraK 98.82 +0.28 0.7 TotRt 10.21 +0.01 2.6 DevMktsIndInst 11.75 -0.01 -0.2
Hogs,Iowa-So. Minnesota-u 74.86 CpInc r 9.29 +0.01 3.3 PIMCO Funds A ExtndInst 65.87 +0.49 4.0
Southwestern Energy SWN 4.050 Jan. 23, 20 91.800 2.05 88.500 14.42 2.56
Pork bellies,12-14 lb MidUS-u n.a. DivIntl 34.72 +0.05 -1.0 TotRetA 10.21 +0.01 2.5 GrwthInst 55.97 +0.19 2.5
Concordia Healthcare CXRCN 7.000 April 15, 23 95.500 2.00 92.750 ... ... Pork loins,13-19 lb MidUS-u 1.2286 DivIntlK r 34.67 +0.05 -0.9 PIMCO Funds D InPrSeIn 10.71 +0.03 4.3
Allegheny Technologies ATI 9.375 June 1, 19 100.500 1.75 98.000 12.56 3.04 Steers,Tex.-Okla. Choice-u n.a. GroCo 133.94 +0.79 -1.9 IncomeFd NA ... NA InstIdx 193.04 +0.57 4.0
Intelsat Jackson Holdings S.A. INTEL 5.500 Aug. 1, 23 66.500 1.55 63.625 ... ... Steers,feeder,Okla. City-u,w n.a. GrowCoK 133.85 +0.79 -1.9 PIMCO Funds Instl InstPlus 193.05 +0.56 4.0
InvGrBd 11.37 +0.02 4.2 IncomeFd NA ... NA InstTStPlus 47.57 +0.18 4.1
And with the biggest price decreases Fats and Oils LowP r 48.83 +0.26 2.3 PIMCO Funds P MidCpInst 34.23 +0.20 4.5
Corn oil,crude wet/dry mill-u,w 40.7500 MidCpIstPl 168.84 +0.97 4.5
Erickson EAC 8.250 May 1, 20 42.750 4.50 54.000 0.58 17.14 LowPriStkK r 48.80 +0.26 2.3 IncomeP NA ... NA
Grease,choice white,Chicago-u 0.3000
MagIn 89.39 +0.30 0.9 Price Funds SmCapInst 56.10 +0.38 6.0
Chemours CC 6.625 May 15, 23 86.000 3.00 89.750 8.86 0.68 Lard,Chicago-u n.a.
Soybean oil,crude;Centl IL-u 0.3089 OTC 80.85 +0.55 -3.1 BlChip 70.56 +0.41 -2.5 STIGradeInst 10.70 +0.01 2.3
Caesars Entertainment Operating CZR 10.000 Dec. 15, 18 38.000 2.00 n.a. 7.99 3.10 +0.07 1.6 CapApp 26.48 +0.08 5.7 TotBdInst 10.92 +0.02 3.7
Tallow,bleach;Chicago-u 0.3100 Puritn 20.56
Concordia Healthcare CXRCN 9.500 Oct. 21, 22 97.938 1.56 99.500 ... ... +0.04 2.8 EmMktS 30.10 +0.15 5.6 TotBdInst2 10.88 +0.02 3.7
Tallow,edible,Chicago-u n.a. SrsEmrgMktF 14.79
Weatherford International WFT 4.500 April 15, 22 79.063 1.44 76.000 5.89 6.51 SrsInvGrdF 11.37 +0.02 4.2 EqInc 30.30 +0.10 6.8 TotBdInstPl 10.92 +0.02 3.7
Teck Resources TCKBCN 6.125 Oct. 1, 35 69.500 1.25 n.a. ... ... KEY TO CODES: A=ask; B=bid; BP=country elevator TotalBond 10.60 +0.02 4.6 EqIndex 56.84 +0.16 3.9 TotIntBdIdxInst 32.82 +0.04 4.2
bids to producers; C=corrected; E=Manfra,Tordella & Fidelity Selects Growth 52.14 +0.36 -2.8 TotIntlInstIdx r 97.65 -0.01 1.1
Kinross Gold KCN 5.950 March 15, 24 94.525 0.98 94.750 ... ... Brooks; G=ICE; I=Natural Gas Intelligence; Biotech r 190.17 +4.77-16.7 HelSci 65.23 +1.13 -5.3 TotItlInstPlId r 97.67 ... 1.1
FMG Resources FMGAU 6.875 April 1, 22 90.000 0.94 89.900 ... ... L=livericeindex.com; M=midday; N=nominal; n.a.=not Health r 198.71 +3.26 -4.1 InstlCapG 28.10 +0.20 -2.7 TotStInst 52.59 +0.20 4.0
quoted or not available; R=SNL Energy; S=The Steel
*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. Index; T=Cotlook Limited; U=USDA; W=weekly, Z=not Fidelity Spartan Intl G&I 13.04 ... -0.2 ValueInst 33.16 +0.11 4.9
Note: Data are for the most active issue of bonds with maturities of two years or more quoted. *Data as of 6/1 500IdxInv 74.28 +0.22 4.0 IntlStk 15.51 +0.03 1.5 Western Asset
Sources: MarketAxess Corporate BondTicker; WSJ Market Data Group Source: WSJ Market Data Group 500IndInst 74.29 +0.22 4.0 MCapGro 75.86 +0.51 3.5 CorePlusBdI NA ... NA
THE WALL STREET JOURNAL. Friday, June 3, 2016 | C7

BIGGEST 1,000 STOCKS

WSJ.com/stocks

How to Read the Stock Tables Net Net Net Net Net Net
The following explanations apply to NYSE, NYSE Arca, NYSE MKT and Nasdaq Stock Market listed Stock Sym Close Chg Stock Sym Close Chg Stock Sym Close Chg Stock Sym Close Chg Stock Sym Close Chg Stock Sym Close Chg
securities. Prices are composite quotations that include primary market trades as well as trades EqResdntl EQR 66.50 0.13 KeysightTechs KEYS 31.39 0.55 PPG Ind PPG 108.20 0.22 SunLifeFinancial SLF 34.44 -0.11 Xerox XRX 10.14 0.16 LKQ LKQ 33.09 0.40
reported by Nasdaq OMX BXSM (formerly Boston), Chicago Stock Exchange, CBOE, National Stock s Xylem Inc. XYL 45.21 0.39
Exchange, ISE and BATS. EssexProp ESS 218.05 -0.88 KilroyRealty KRC 63.47 0.58 PPL PPL 38.57 -0.07 SuncorEnergy SU 27.43 0.36 LamResearch LRCX 83.63 0.50
The list comprises the 1,000 largest companies based on market capitalization. EsteeLaudr A EL 93.20 0.21 KimberlyClark KMB 128.00 0.02 PVH Corp. PVH 97.33 1.88 SunocoLogistics SXL 28.70 0.24 YPFADR YPF 21.27 0.33 LamarAdvertisingA LAMR 65.03 0.74
Underlined quotations are those stocks with large changes in volume compared with the issues EvrstReGrp RE 177.85 -1.14 KimcoRealty KIM 28.76 0.32 PackCpAm PKG 69.48 0.52 SunTrustBanks STI 44.04 0.21 YamanaGold AUY 4.21 ... LibertyBroadbandA LBRDA 59.94 0.46
average trading volume. EversourceEnergy ES 55.35 -0.17 KinderMorgan KMI 17.96 ... PaloAltoNetworks PANW 140.73 6.26 SynchronyFinancial SYF 31.28 -0.01 YanzhouCoalADR YZC 5.40 0.07 s LibertyBroadbandC LBRDK 60.19 0.56
Boldfaced quotations highlight those issues whose price changed by 5% or more if their previous Exelon EXC 34.72 0.31 KinrossGold KGC 4.33 0.04 ParkerHannifin PH 115.88 0.48 SyngentaADR SYT 80.14 0.54 YumBrands YUM 82.46 0.03 LibertyGlobalClA LBTYA 38.43 1.04
closing price was $2 or higher. ExtraSpaceStorage EXR 93.41 0.41 Kohl's KSS 37.38 1.21 PearsonADR PSO 12.31 0.09 Sysco SYY 48.76 -0.05 ZayoGroupHoldings ZAYO 28.00 0.21 LibertyGlobalClB LBTYB 37.67 ...
Footnotes: listing standards vj-In bankruptcy or ExxonMobil XOM 88.53 -0.71 KoninklijkePhilADR PHG 26.99 0.02 PembinaPipeline PBA 30.07 0.37 TEConnectivity TEL 60.17 0.56 ZimmerBiomet ZBH 122.91 0.76 LibertyGlobalClC LBTYK 37.17 0.94
s-New 52-week high. lf-Late filing receivership or being FMC FMC 48.01 0.32 KoreaElcPwrADR KEP 25.36 -0.01 Pentair PNR 60.75 0.56 TEGNA TGNA 23.30 0.58 Zoetis ZTS 48.13 0.28 LibertyGlbLiLACAWi LILA 39.22 -1.95
t-New 52-week low. q-Temporary exemption from reorganized under the
dd-Indicates loss in the most Nasdaq requirements. Bankruptcy Code, or securities FMCTechnologies FTI 26.59 -0.32 Kroger KR 36.44 0.02 PepsiCo PEP 102.00 0.43 TELUS TU 31.68 -0.05 LibertyGlbLiLACClC LILAK 40.41 -2.29
recent four quarters. t-NYSE bankruptcy assumed by such companies. FactSetResearchSys FDS 160.27 1.74 KyoceraADR KYO 48.68 -0.43 PerkinElmer PKI 54.92 0.10 TERNIUMADR TX 18.65 0.37 NASDAQ LibertyInteractQVC QVCA 27.01 -0.04
FD-First day of trading. v-Trading halted on primary FedRlty FRT 154.79 0.93 LBrands LB 71.33 2.92 Perrigo PRGO 98.15 1.20 TJX TJX 77.00 0.40 Ansys ANSS 88.95 LibertyVenturesA LVNTA 38.44 0.75
0.58
h-Does not meet continued market. FedEx FDX 164.80 0.10 LGDisplayADR LPL 10.77 -0.01 PetroChinaADR PTR 69.71 0.65 TaiwanSemiconADR TSM 25.18 -0.07 ARMHoldingsADR ARMH 42.75 LinearTechnology LLTC 47.44 -0.23
0.21
Ferrari RACE 43.53 0.99 s L-3Communications LLL 139.86 1.58 PetroleoBrasilADR PBR 5.92 0.11 TargaResources TRGP 43.66 0.10 lululemonathletica LULU 67.13 0.96
ASMLHolding ASML 100.14 0.29
Wall Street Journal stock tables reflect composite regular trading as of 4 p.m. and FiatChryslerAutos FCAU 7.13 0.09 s LabCpAm LH 129.56 1.32 PetroleoBrasilADRA PBR/A 4.61 0.10 Target TGT 68.32 -0.09 ManhattanAssoc MANH 67.23 0.77
changes in the closing prices from 4 p.m. the previous day. AcadiaHealthcare ACHC 61.02 1.34
FibriaCelulose ADR FBR 9.40 0.11 LasVegasSands LVS 46.77 0.41 Pfizer PFE 34.87 0.12 TaroPharm TARO 147.52 0.27 ActivisionBliz ATVI 38.69 s MarketAxess MKTX 141.45 0.80
0.04
Thursday, June 2, 2016 Net Net FidNtlFnl FNF 34.75 -0.03 LearCorp LEA 117.46 -0.03 PhilipMorrisIntl PM 99.26 -0.14 TataMotorsADR TTM 34.17 0.85 Markit MRKT 33.90 0.08
AdobeSystems ADBE 100.17 0.13
Net Stock Sym Close Chg Stock Sym Close Chg FNFVGroup FNFV 11.93 ... Leggett&Platt LEG 51.01 0.38 PhilippineLgDisADR PHI 41.09 -0.26 TeckResourcesB TCK 9.85 0.20 MarriottInt A MAR 68.52 1.37
AkamaiTechnologies AKAM 54.90 0.48
Stock Sym Close Chg s FidelityNtlInfo FIS 75.38 0.66 LennarClA LEN 45.78 -0.03 Phillips66 PSX 80.83 -0.02 TecoEnergy TE 27.64 0.04 MarvellTch MRVL 10.28 0.03
BRFADR BRFS 13.40 0.55 Chubb CB 127.81 0.48 AlexionPharm ALXN 156.77 4.07
58.comADR WUBA 53.50 1.40 LennarClB LEN/B 36.74 0.02 s PiedmontNaturalGas PNY 60.25 0.07 TelecomItaliaADR TI/A 7.88 0.07 Mattel MAT 31.67 -0.16
BTGroupADR BT 31.78 0.22 ChunghwaTelecomADR CHT 34.08 0.16 AlignTechnology ALGN 79.63 0.41
NYSE BakerHughes BHI 45.90 -0.43 Church&Dwight CHD 99.23 0.29
FirstDataClA FDC 12.69 0.04 LennoxIntl LII 137.91
LeucadiaNational LUK 18.03
0.03 PinnacleFoods PF 42.82 0.48 TelecomItaliaADR TI 9.49 -0.05 Alkermes ALKS 47.00 1.16 MaximIntProducts MXIM 38.18 -0.10
FirstRepublicBank FRC 71.47 0.19 -0.06 PinnacleWestCap PNW 74.26 -0.07 s Teleflex TFX 166.18 3.00 Medivation MDVN 60.97 -0.17
ABBADR ABB 20.84 -0.04 Ball BLL 73.68 1.76 Cigna CI 129.57 1.85 AlnylamPharm ALNY 74.12 3.58
FirstEnergy FE 33.31 0.24 Level3Comm LVLT 53.75 0.45 PioneerNaturalRscs PXD 159.40 -0.08 TelefonicaBrasADR VIV 11.53 0.01 MelcoCrownEntADR MPEL 14.01 -0.32
AECOM ACM 32.05 -0.04 BancoBilbaoVizADR BBVA 6.56 0.01 CimarexEngy XEC 117.23 1.34 s LibertyPropertyTr LPT 37.52 AlphabetClA GOOGL 744.27 -4.19
FleetCorTechs FLT 152.48 2.46 0.01 PlainsAllAmPipe PAA 24.66 0.09 TelefonicaADR TEF 10.29 0.03 MercadoLibre MELI 137.00 0.66
AES AES 10.84 -0.10 BancodeChileADR BCH 60.70 0.30 Citigroup C 46.97 0.03 AlphabetClC GOOG 730.40 -3.75
Flowserve FLS 48.98 0.82 EliLilly LLY 75.46 0.52 PolarisIndustries PII 83.98 -0.47 TelekmIndonesiaADR TLK 56.26 1.56 s MichaelsCos. MIK 30.17 0.55
BcoSantChileADR BSAC 18.37 0.29 CitizensFinancial CFG 23.83 0.23 s Amazon.com AMZN 728.24 8.80
Aflac AFL 69.58 0.17 Fluor FLR 52.52 0.34 LincolnNational LNC 46.05 0.34 PostHoldings POST 76.17 0.10 TenarisADR TS 26.10 -0.14 s MicrochipTech MCHP 51.72 0.01
AGLResources GAS 65.79 0.23 BancoSantanderADR SAN 4.71 0.04 Clorox CLX 129.83 -0.06 LinkedInA LNKD 136.50 Amdocs DOX 57.87 0.18
FomentoEconMexADR FMX 90.73 -0.25 -0.53 PotashCp POT 16.49 0.10 Tesoro TSO 81.51 1.42 MicronTechnology MU 13.11 0.02
AT&T T 38.84 0.11 BanColombiaADR CIB 33.01 0.51 Coach COH 39.77 0.43 LiveNationEnt LYV 24.61 Amerco UHAL 376.40 -0.78
FootLocker FL 55.08 0.18 0.23 Praxair PX 110.56 -0.28 TesoroLogistics TLLP 49.35 -0.96 Microsoft MSFT 52.48 -0.37
AbbottLabs ABT 39.53 0.03 BankAm BAC 14.94 0.08 CocaCola KO 44.72 0.02 LloydsBankingADR LYG 4.16 AmericaMovilClAADR AMOV 12.04 -0.11
FordMotor F 13.21 0.10 -0.03 PrincipalFinancial PFG 43.93 0.11 TevaPharmADR TEVA 54.65 1.74 s Middleby MIDD 125.70 1.21
AbbVie ABBV 65.09 2.26 BkMntrl BMO 63.10 0.10 Coca-ColaFemsaADR KOF 78.23 -0.75 LockheedMartin LMT 237.83 AmerAirlinesGrp AAL 31.67 -0.28
ForestCityRealtyA FCE/A 22.94 0.14 -0.25 Procter&Gamble PG 81.95 0.16 Textron TXT 38.51 0.32 MondelezIntlClA MDLZ 45.07 0.24
AccentureClA ACN 119.24 0.23 BankNY Mellon BK 42.16 -0.09 ColgatePalmolive CL 71.42 0.22 Loews L 40.55 0.11 ProgressiveCorp PGR 33.17 AmeriCapAg AGNC 19.00 0.02
FortBrandsHomeSec FBHS 58.67 -0.06 -0.23 s ThermoFisherSci TMO 153.55 0.49 MonsterBeverage MNST 152.46 1.06
AcuityBrands AYI 255.53 0.39 BkNovaScotia BNS 49.99 0.30 ColumbiaPipeline CPGX 25.56 0.03 s Lowe's LOW 80.76 0.49 Prologis PLD 48.01 Amgen AMGN 159.87 1.82
Franco-Nevada FNV 63.88 -0.38 0.22 ThomsonReuters TRI 42.07 0.02 Mylan MYL 44.96 0.50
AdvanceAuto AAP 152.15 -1.19 BarclaysADR BCS 10.55 0.07 Comerica CMA 47.05 -0.36 LuxotticaGroupADR LUX 53.50 -0.38 PrudentialFin PRU 78.73 AnalogDevices ADI 58.28 -0.37
FranklinResources BEN 35.78 -1.04 -0.09 3M MMM 168.04 -0.65 NXP Semi NXPI 93.50 -0.84
AdvSemiEnggADR ASX 5.74 0.18 Bard CR BCR 220.73 1.60 SABESP ADR SBS 7.27 -0.01 LyondellBasell LYB 80.58 -1.92 PrudentialADR PUK 39.34 Apple AAPL 97.72 -0.74
Freeport-McMoRan FCX 10.66 0.06 0.14 Tiffany TIF 63.23 0.90 Nasdaq NDAQ 65.15 -0.45
BarrickGold ABX 16.96 0.06 CSC CSC 50.43 1.44 s AppliedMaterials AMAT 24.52 0.14
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Gap GPS 18.33 0.46 0.02 Torchmark TMK 61.51 0.08 Netflix NFLX 101.25 -0.26
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Gartner IT 102.53 1.03 Toro TTC 89.16 0.58 Autodesk ADSK 58.76 0.46 NewsCorpClA NWSA 12.14 0.12
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GeneralMotors GM 30.26 0.04 TransdigmGrp TDG265.84 -0.25 BioMarinPharm BMRN 91.52 4.12 OReillyAuto ORLY 262.69 -0.85
Alcoa AA 9.33 0.03 BlackstoneGroup BX 26.28 0.02 Corning GLW 21.16 0.39 Genpact G 28.23 0.13 ManpowerGroup MAN 80.95 0.82 RangeResources RRC 43.26 0.16 TransUnion TRU 32.77 -0.40 OldDominionFreight ODFL 62.66 -0.86
AlexREEq ARE 97.29 0.82 BlockHR HRB 21.72 0.14 CotyClA COTY 26.83 0.24 ManulifeFinancial MFC 14.81 0.01 RayJamFnl RJF 56.58 0.37 BlackBerry BBRY 7.31 0.06
GenuineParts GPC 96.93 0.62 TravelersCos TRV 114.87 0.03 s OpenText OTEX 59.61 0.24
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Gildan GIL 29.99 -0.01 s TreeHouseFoods THS 96.01 1.49 Broadcom AVGO 154.91 0.14 Paccar PCAR 56.25 0.58
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MarineHarvestADR MHG 16.81 s CA CA 32.80 0.32
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Allergan AGN 247.12 BostonProperties BXP 127.26 0.15 CrestwoodEquity CEQP 22.89 0.95 Markel MKL 967.93 4.27 RedHat RHT 78.23 0.82 CBOE Holdings CBOE 62.87 -0.36
4.72 Goldcp GG 16.95 0.12 Twitter TWTR 15.20 0.18 Patterson PDCO 49.30 0.42
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AllianceData ADS 224.49 1.87 GoldmanSachs GS 159.28 -0.69 s TycoInternational TYC 43.44 0.20 s Paychex PAYX 54.94 0.48
AllncBrnstnHldg AB 23.57 BristolMyers BMY 73.00 1.13 CrownHoldings CCK 53.28 0.48 MrtnMarMat MLM 187.90 -0.83 RegionsFinancial RF 10.00 0.07 CDW CDW 42.65 0.04
0.04 GraceWR GRA 79.00 0.48 TylerTechnologies TYL 156.98 2.13 PayPalHoldings PYPL 38.56 0.25
AlliantEnergy LNT 37.40 BrixmorPropertyGrp BRX 25.60 0.12 CubeSmart CUBE 31.96 0.37 Masco MAS 32.13 -0.40 s ReinsuranceGrp RGA 99.29 0.02 CH Robinson CHRW 73.79 -0.46
0.10 Grainger GWW 229.73 1.56 TysonFoodsClA TSN 62.60 -1.71 People'sUnitedFin PBCT 16.00 0.03
AllisonTransmissn ALSN 28.77 BdridgeFnlSol BR 64.20 0.03 Cummins CMI 115.13 1.00 MasterCard MA 96.88 0.47 RelianceStl RS 74.76 0.15 CMEGroupClA CME 97.54 -0.47
0.21 GpoAeroportuarADR PAC 96.82 -3.07 UBSGroup UBS 15.13 -0.21 PilgrimPride PPC 24.94 0.05
BrookfieldMgt BAM 35.27 0.09 DDR Corp DDR 17.44 0.11 McCormick MKC 97.18 -0.08 RenaissanceRe RNR 116.17 0.18 CSX CSX 26.42 0.20
Allstate ALL 67.44 ... GpoAvalAccionesADR AVAL 7.41 0.08 UDR UDR 35.14 0.11 PricelineGroup PCLN 1290.00 12.00
BrookfieldInfr BIP 42.99 0.14 DTEEnergy DTE 91.11 -0.01 McCormickVtg MKC/V 96.92 -1.08 RepublicServices RSG 48.68 0.26 CadenceDesign CDNS 24.73 -0.01
AllyFinancial ALLY 18.51 0.33 GpFinSantandMexADR BSMX 9.18 0.12 UGI UGI 43.31 0.36 Qiagen QGEN 22.13 0.16
Brown&Brown BRO 36.16 0.14 Danaher DHR 98.64 ... McDonalds MCD 121.17 0.09 ResMed RMD 59.55 0.38 CaseysGenStores CASY 124.60 1.06
AltriaGroup MO 64.31 -0.04 GrupoTelevisaADR TV 26.71 -0.25 s USFoodsHolding USFD 25.28 -0.07 Qorvo QRVO 53.49 1.35
BrownFormanClA BF/A 105.36 0.18 Darden DRI 67.80 0.37 McKesson MCK 187.79 3.26 RestaurantBrands QSR 41.65 0.32 Celgene CELG 108.24 2.22
AlumofChinaADR ACH 7.66 0.11 HCAHoldings HCA 78.98 0.61 UltraparPartADR UGP 19.28 0.22 Qualcomm QCOM 54.88 0.09
MeadJohnNutr MJN 83.22 0.24 ReynoldsAmer RAI 49.92 -0.10 Cerner CERN 55.61 -0.01
AmbevADR ABEV 5.36 -0.02 BrownFormanClB BF/B 97.05 ... DaVitaHlthcrPtrs DVA 77.93 0.40 HCP HCP 33.37 0.26 UnderArmour A UA 36.56 0.31 RandgoldRscsADR GOLD 84.86 0.17
BuckeyePartners BPL 72.81 0.24 Deere DE 84.06 1.23 Mednax MD 68.31 0.32 RioTinto ADR RIO 27.58 0.06 CharterComms CHTR 227.82 0.32
Ameren AEE 49.10 -0.33 s HDFCBankADR HDB 65.58 0.77 UnderArmourClC UA/C 34.22 0.50 RegenPharm REGN 407.13 2.82
Bunge BG 67.74 0.25 DelhaizeGroupADR DEG 26.98 0.15 s Medtronic MDT 82.99 2.47 RiteAid RAD 7.77 0.03 CheckPointSoftware CHKP 85.77 0.97
AmericaMovilADR AMX 12.13 -0.07 HP HPQ 13.54 0.10 UnileverADR UN 45.34 ... RossStores ROST 53.69 0.39
CBRE Group CBG 30.19 0.16 DelphiAutomotive DLPH 68.34 1.28 Merck MRK 56.82 0.49 RobHalfIntl RHI 41.91 0.22 CincinnatiFin CINF 69.62 0.26
AmCampus ACC 46.54 -0.02 HSBCHoldingsADR HSBC 32.51 0.22 UnileverADR UL 45.89 ... RyanairHoldingsADR RYAAY 87.41 0.01
MetLife MET 45.71 -0.07 Rockwell ROK 117.47 1.31 Cintas CTAS 95.47 0.66
AEP AEP 64.68 -0.21 CBSClA CBS/A 58.84 0.55 DeltaAir DAL 42.45 -1.06 Halliburton HAL 42.13 -0.02 UnionPacific UNP 84.61 0.50 SBACommunications SBAC 101.75 3.39
MettlerToledo MTD 377.37 1.43 RockwellCollins COL 88.53 -0.08 CiscoSystems CSCO 29.08 0.18
AmericanExpress AXP 66.41 0.50 CBSClB CBS 55.40 0.23 DeutscheBank DB 17.54 -0.08 Hanesbrands HBI 27.76 0.11 UnitedContlHldgs UAL 45.17 -0.08 SEIInvestments SEIC 51.75 0.49
MichaelKorsHldgs KORS 47.51 1.96 RogerComm B RCI 38.35 -0.01 CitrixSystems CTXS 86.49 0.68
AmericanFinancial AFG 73.11 -0.12 CFIndustries CF 27.98 0.34 DevonEnergy DVN 36.81 0.66 HarleyDavidson HOG 46.15 -0.08 UnitedMicroADR UMC 1.92 0.03 SS&CTechs SSNC 61.54 -0.01
MidAmApt MAA 101.90 -0.86 RollinsInc ROL 28.69 0.14 CognizantTechSolns CTSH 61.34 0.21
AmericanIntl AIG 57.84 0.10 CGI Gp A GIB 46.97 0.29 DiageoADR DEO 108.22 -0.26 HarmanIntlInds HAR 80.08 1.62 UtdParcel B UPS 103.05 0.16 SVBFinancialGroup SIVB 110.96 1.01
MitsubishiUFJADR MTU 4.82 -0.06 RoperTechnologies ROP 171.65 0.78 Comcast A CMCSA 63.66 -0.07
AmericanTowerREIT AMT 106.56 1.09 CIT Grp CIT 34.15 0.09 DicksSprtgGds DKS 43.24 0.22 Harris HRS 79.77 0.21 UnitedRentals URI 71.09 1.64 Sabre SABR 28.32 0.22
MizuhoFinancialADR MFG 3.05 -0.06 RoyalBkCanada RY 60.78 0.21 CommScopeHldg COMM 31.81 0.25
AmericanWaterWorks AWK 75.20 -0.04 CMSEnergy CMS 42.01 -0.01 DigitalRealtyTrust DLR 97.13 1.54 HrtfrdFnl HIG 44.97 -0.16 US Bcp USB 43.06 0.06 ScrippsNetworksA SNI 65.37 0.85
MobileTeleSysADR MBT 8.94 0.17 RoyalBkScotlandADR RBS 7.02 0.04 Copart CPRT 49.46 0.10
Amerigas APU 45.86 -0.10 CNAFinancial CNA 32.69 -0.10 DiscoverFinSvcs DFS 57.15 0.19 Helmerich&Payne HP 58.87 -0.94 US Steel X 14.87 0.80 SeagateTechnology STX 23.75 0.74
Mobileye MBLY 39.69 1.53 RoyalCaribbean RCL 77.63 0.67 CoStarGroup CSGP 209.30 0.14
AmerprsFncl AMP 102.02 -0.33 CNOOCADR CEO 122.90 1.26 Disney DIS 98.72 0.20 Herbalife HLF 59.63 0.42 UnitedTech UTX 100.79 0.44 SeattleGenetics SGEN 43.78 2.95
MohawkIndustries MHK 199.11 0.96 RoyalDutchADRA RDS/A 48.85 -0.03 CostcoWholesale COST 151.51 -1.01
AmeriSrcBrg ABC 77.08 1.44 CPFLEnergiaADR CPL 10.45 0.21 DolbyLab A DLB 48.20 0.17 Hershey HSY 92.76 -0.24 s UnitedHealthGroup UNH 136.04 1.51 ShireADR SHPG190.04 -1.19
s MolsonCoors A TAP/A101.83 1.25 RoyalDutchADRB RDS/B 49.18 0.12 Ctrip.comIntlADR CTRP 44.68 0.36
Ametek AME 47.84 -0.06 CRHADR CRH 30.27 -0.09 s DollarGeneral DG 90.90 0.16 Hess HES 59.23 0.31 UniversalHealthB UHS 137.37 1.45 SignatureBank SBNY 134.91 -0.28
MolsonCoors B TAP 101.94 0.18 SAPADR SAP 80.92 -0.29 DISHNetworkClA DISH 53.68 2.95
AmphenolClA APH 59.09 0.28 CVSHealth CVS 96.40 -0.18 DominionResources D 71.49 -0.19 HewlettPackardEnt HPE 18.50 0.21 UnumGroup UNM 36.85 0.10 SiliconwareADR SPIL 8.05 ...
s Cablevision CVC 34.74 0.02 Dominos DPZ 123.25 1.85 Monsanto MON 110.36 -0.62 S&PGlobal SPGI 110.45 -0.35 DentsplySirona XRAY 63.00 0.52
AnadarkoPetroleum APC 51.69 -0.71 HighwdProp HIW 48.71 -0.16 VEREIT VER 9.67 -0.01 SiriusXMHoldings SIRI 4.01 -0.01
DouglasEmmett Moodys MCO 99.59 0.73 SINOPECShanghaiADR SHI 49.34 0.39 Dexcom DXCM 67.64 2.89
AngloGoldAshADR AU 13.93 0.20 CabotO&G COG 24.74 0.07 DEI 33.71 -0.02 HiltonWorldwide HLT 21.61 0.67 VF VFC 62.74 0.55 SkyworksSolutions SWKS 66.58 -0.69
MorganStanley MS 27.28 -0.21 SKTelecomADR SKM 20.34 0.14 DiamondbackEnergy FANG 92.42 0.89
AnheuserBuschADR BUD 128.26 -0.77 Calpine CPN 15.19 0.11 Dover DOV 67.00 0.02 HollyFrontier HFC 27.95 -0.20 VISAClA V 79.95 0.73 Splunk SPLK 58.47 0.23
Mosaic MOS 25.65 0.42 SLGreenRealty SLG 102.06 0.63 DiscoveryCommsB DISCB 28.50 0.75
AnnalyCap NLY 10.75 0.02 CamdenPropertyTr CPT 83.99 -0.11 DowChemical DOW 52.24 0.66 HomeDepot HD 132.41 0.58 VailResorts MTN 133.68 2.23 Staples SPLS 8.83 0.07
MotorolaSolutions MSI 68.80 -0.26 Salesforce.com CRM 83.24 -0.21 DiscoveryCommsA DISCA 28.30 0.49
AnteroResources AR 28.89 -0.24 Cameco CCJ 11.60 0.20 DrPepperSnap DPS 92.04 -0.31 HondaMotorADR HMC 27.28 -0.42 ValeADR VALE 4.15 0.12 Starbucks SBUX 54.62 -0.20
MurphyOil MUR 30.47 -0.23 SanofiADR SNY 41.17 0.03 DiscoveryCommsC DISCK 27.11 0.45
Anthem ANTM 133.29 0.78 CampbellSoup CPB 60.73 -0.33 DrReddysLabADR RDY 47.07 0.17 Honeywell HON 114.53 0.59 ValeantPharmIntl VRX 29.41 -0.38 SteelDynamics STLD 24.92 0.25
NRGEnergy NRG 17.15 0.30 SasolADR SSL 30.48 -0.11 s DollarTree DLTR 91.05 0.24
Aon AON 109.43 0.09 CIBC CM 78.00 -0.01 DuPont DD 68.10 1.70 HormelFoods HRL 34.28 -0.15 ValeroEnergy VLO 55.72 -0.03 Stericycle SRCL 98.73 0.17
NTTDoCoMoADR DCM 25.03 -0.06 SCANA SCG 70.07 -0.12 DunkinBrands DNKN 43.77 0.65
Apache APA 55.84 -0.33 CanNtlRlwy CNI 58.84 -0.24 DukeEnergy DUK 78.94 -0.08 DR Horton DHI 31.06 0.18 Valspar VAL 108.24 0.03 Symantec SYMC 17.37 0.06
NVR NVR 1717.14 -8.39 Schlumberger SLB 75.45 -0.41 E Trade ETFC 28.13 0.19
ApartmtInv AIV 41.63 -0.25 CndNatRes CNQ 29.42 0.39 s DukeRealty DRE 23.88 0.07 HostHotels&Resorts HST 15.77 0.33 Vantiv VNTV 54.13 0.44 Synopsys SNPS 52.40 0.42
NationalGridADR NGG 70.52 -0.72 SchwabC SCHW 30.84 0.03 EastWestBancorp EWBC 39.34 0.50
Aptargroup ATR 77.35 0.14 CanPacRlwy CP 130.20 -0.57 EMC EMC 27.93 -0.02 HuanengPowerADR HNP 26.86 -0.12 VarianMed VAR 83.64 0.98 TDAmeritrade AMTD 32.88 0.22
s AquaAmerica WTR 32.99 NtlOilwellVarco NOV 32.00 -0.10 SealedAir SEE 46.72 0.27 eBay EBAY 24.25 0.18
0.15 CanonADR CAJ 28.85 -0.08 ENIADR E 30.40 -0.01 Hubbell HUBB 105.83 -0.10 s VeevaSystemsClA VEEV 34.60 0.98 TFSFinancial TFSL 18.48 -0.02
NtlRetailProp NNN 45.93 0.23 SempraEnergy SRE 106.73 -0.05 ElectroArts EA 76.58 -0.04
Aramark ARMK 33.48 0.20 CapOneFnl COF 73.38 0.16 EOG Res EOG 80.49 -0.26 Humana HUM 187.36 9.96 Ventas VTR 65.99 0.14 T-MobileUS TMUS 43.19 0.57
NetSuite N 83.57 3.25 ServiceCp SCI 28.01 0.34 Equinix EQIX 367.53 1.59
ArcelorMittalADR MT 5.09 0.24 CardinalHealth CAH 79.89 1.17 EQT EQT 73.79 0.54 HuntingtonIngalls HII 156.74 0.12 Verizon VZ 50.77 0.34 TRowePrice TROW 76.94 -0.08
NewOrientalEducADR EDU 43.07 0.98 ServiceMasterGlb SERV 39.03 ... EricssonADR ERIC 7.58 0.02
ArcherDan ADM 43.47 0.64 Carlisle CSL 101.00 -3.60 EQTMidstreamPtrs EQM 76.08 -0.13 HyattHotels H 48.03 0.84 VermilionEnergy VET 33.16 0.06 TeslaMotors TSLA 218.96 -0.60
NY CmntyBcp NYCB 15.80 0.03 ServiceNow NOW 74.23 1.06 Expedia EXPE 111.10 0.50
AristaNetworks ANET 74.90 0.82 CarMax KMX 52.09 ... EastmanChemical EMN 73.71 -0.21 ICICIBankADR IBN 7.17 0.06 VipshopHldgsADR VIPS 11.21 -0.15 TexasInstruments TXN 60.76 -0.31
NewellBrands NWL 48.00 0.07 ShawCom B SJR 19.12 -0.07 ExpeditorsIntl EXPD 48.46 -0.16
s ArrowElec ARW 65.96 0.73 Carnival CCL 48.33 0.28 EatonCorp.PLC ETN 61.75 0.10 IHSClA IHS 120.49 ... VMware VMW 62.02 TractorSupply TSCO 96.65 0.08
NewfldExpl NFX 40.31 0.33 SherwinWilliams SHW 292.03 0.69 0.51 ExpressScriptsHldg ESRX 76.26 0.42
Ashland ASH 114.53 1.74 Carnival ADR CUK 49.75 0.16 Ecolab ECL 118.87 0.35 IMSHealthHoldings IMS 26.23 -0.03 VornadoRealtyTrust VNO 96.32 0.97 TrimbleNavigation TRMB 25.83 0.26
NewMarket NEU 407.37 1.39 ShinhanFinADR SHG 33.09 0.03 F5Networks FFIV 110.84 1.35
Assurant AIZ 85.67 -0.78 Carters CRI 102.89 0.98 EcopetrolADR EC 8.98 0.22 INGGroepADR ING 12.39 0.01 VoyaFinancial VOYA 32.46 -0.11 s FacebookClA FB 118.93 TripAdvisor TRIP 68.63 1.57
NewmontMining NEM 32.35 -0.31 t SignetJewelers SIG 92.23 -6.50 0.15
AstraZenecaADR AZN 29.67 0.22 Caterpillar CAT 73.62 1.35 EdgewellPersonal EPC 81.53 0.57 Invesco IVZ 30.83 -0.48 VulcanMaterials VMC 115.51 -1.51 21stCenturyFoxClA FOXA 29.55 0.20
NextEraEnergy NEE 119.81 -0.34 SilverWheaton SLW 18.73 0.16 Fastenal FAST 46.51 0.27
AtmosEnergy ATO 72.70 -0.21 Celanese A CE 70.61 0.35 EdisonInt EIX 71.76 0.19 ITCHoldings ITC 44.65 0.05 WABCO Hldg WBC 108.88 1.21 21stCenturyFoxClB FOX 29.86 0.16
NielsenHoldings NLSN 53.72 0.13 SimonPropertyGroup SPG 197.40 -0.86 FifthThirdBancorp FITB 19.30 0.28
Autoliv ALV 124.45 1.33 CemexADR CX 6.19 -0.11 EdwardsLife EW 102.10 2.26 IDEX IEX 84.65 0.72 WECEnergyGroup WEC 60.18 -0.27 s UltaSalon ULTA 237.06 0.38
NikeClB NKE 54.53 -0.24 SixFlagsEnt SIX 58.08 0.55 FirstSolar FSLR 49.84 -0.23
AutoNation AN 49.51 -0.16 CencosudADR CNCO 7.76 -0.21 EmersonElectric EMR 52.24 0.08 s IllinoisToolWorks ITW 107.12 0.42 s W.P.Carey WPC 65.18 0.20 s Fiserv UltimateSoftware ULTI 209.54 3.10
NipponTelegraphADR NTT 43.35 -0.28 SkechersUSAClA SKX 31.66 0.19 FISV 106.65 0.74
AutoZone AZO 768.59 7.84 CenovusEnergy CVE 15.22 -0.02 EmpresaNacADR EOCC 25.90 -0.17 InfosysADR INFY 19.67 0.12 Wabtec WAB 78.00 0.13 s FlextronInt FLEX 12.76 UnitedTherapeutics UTHR 121.03 1.91
NiSource NI 23.99 -0.04 SmithAO AOS 82.69 0.20 0.07
Avalonbay AVB 176.55 0.13 Centene CNC 65.16 1.91 EnbridgePtnr EEP 22.26 0.26 Ingersoll-Rand IR 66.57 0.07 WalMart WMT 70.95 0.45 s VCA WOOF 65.92 0.90
NobleEnergy NBL 35.44 -0.04 Smith&NephewADR SNN 34.59 0.17 Fortinet FTNT 34.67 0.16
Avangrid AGR 42.55 0.06 CenterPointEnergy CNP 22.60 0.01 Enbridge ENB 40.44 0.29 IngramMicroClA IM 34.83 -0.05 WasteMgt WM 61.41 0.43 FrontierComms FTR 5.16 VeriSign VRSN 85.32 -0.06
NokiaADR NOK 5.66 -0.01 Smucker SJM 130.40 0.68 0.09
AveryDennison AVY 75.28 1.12 CenturyLink CTL 27.12 0.22 Encana ECA 8.06 0.11 Ingredion INGR 119.36 1.24 s Waters WAT 139.76 1.30 Gaming&LeisureProp GLPI 33.23 VeriskAnalytics VRSK 79.98 0.54
NomuraHoldingsADR NMR 4.11 -0.11 SnapOn SNA 162.29 -1.15 -0.04
Aviva ADR AV 13.01 0.01 Chevron CVX 100.53 -0.60 EngyTrnsfrEqty ETE 13.61 -0.05 ICE ICE 267.24 -1.84 Watsco WSO 135.54 1.13 Garmin GRMN 42.80 VertxPharm VRTX 95.82 1.92
Nordstrom JWN 39.30 1.15 SOQUIMICH ADR SQM 22.41 0.69 0.49
Avnet AVT 41.49 0.18 ChinaEasternAirADR CEA 26.72 -0.14 EnergyTransfer ETP 37.17 0.02 InterContinentlADR IHG 38.82 0.46 WeatherfordIntl WFT 5.89 0.36 GileadSciences GILD 86.72 Viacom A VIA 49.21 0.78
NorfolkSouthern NSC 83.17 0.16 SonocoProducts SON 47.72 0.07 0.14
AxaltaCoatingSys AXTA 27.93 -0.06 ChinaLifeInsADR LFC 11.26 0.10 Enerplus ERF 5.79 0.30 IBM IBM 153.50 0.99 WeingartenRealty WRI 38.18 0.17 Goodyear GT 27.49 Viacom B VIAB 45.09 0.51
NorthropGrumman NOC 213.38 0.11 SonyADR SNE 28.00 0.14 0.11
AxisCapital AXS 55.21 -0.02 ChinaMobileADR CHL 57.28 0.24 EnersisAmericasADR ENIA 7.63 -0.03 IntFlavor IFF 128.71 -0.21 WellsFargo WFC 51.11 0.11 Grifols ADR GRFS 16.84 VimpelComADR VIP 3.85 0.10
Novartis ADR NVS 80.71 1.08 Southern SO 49.36 -0.21 0.04
BB&T BBT 36.93 0.26 ChinaPetroleumADR SNP 69.94 0.55 EnLinkMidstream ENLK 16.38 0.25 InternationalPaper IP 42.90 0.79 Welltower HCN 69.47 0.48 HDSupplyHoldings HDS 34.78 VodafoneGroupADR VOD 33.79 0.09
NovoNordiskADR NVO 56.00 -0.21 SoCopper SCCO 26.27 0.22 -0.37
BCE BCE 46.18 -0.09 ChinaSoAirlinesADR ZNH 29.75 -0.07 Entergy ETR 76.89 0.26 Interpublic IPG 23.97 0.15 s WestPharmSvcs WST 75.73 0.54 HainCelestialGroup HAIN 49.93 WPPADR WPPGY 116.16 0.90
Nucor NUE 49.16 0.36 SowestAir LUV 42.17 -0.37 0.43
BHPBillitonADR BHP 26.76 0.12 ChinaTelecomADR CHA 46.94 -0.39 EntPdtsPtnr EPD 28.19 0.06 IronMountain IRM 36.62 0.45 WestarEnergy WR 56.33 0.05 Hasbro HAS 86.73 -0.39 WalgreensBootsAll WBA 79.10 1.00
NuSTAREnergy NS 51.25 0.76 SouthwesternEnergy SWN 14.42 0.36
BHPBillitonADR BBL 23.80 0.04 ChinaUnicomADR CHU 10.99 -0.04 Equifax EFX 126.31 0.82 IsraelChemicals ICL 4.20 0.04 WesternGasEquity WGP 43.48 0.45 s HenrySchein HSIC 176.16 3.06 WeiboADR WB 26.79 -0.06
OGEEnergy OGE 30.63 0.18 SovranSelfStorage SSS 108.46 0.22
BPADR BP 31.52 0.18 ChipotleMex CMG 443.49 10.90 EquityLife ELS 73.67 -0.12 ItauUnibancoADR ITUB 8.30 0.13 WesternGasPartners WES 50.64 0.16 Hologic HOLX 34.84 0.18 WesternDigital WDC 48.38 0.75
ONEOK OKE 43.73 -0.04 SpectraEnergy SE 32.45 0.39
JPMorganChase JPM 65.81 0.12 WesternUnion WU 19.48 0.02 JBHunt JBHT 81.90 -0.29 WholeFoods WFM 34.32 0.38
ONEOKPartners OKS 38.47 0.19 SpectraEnergyPtrs SEP 45.79 0.54
s JacobsEngineering JEC 50.78 -0.10 WestlakeChemical WLK 45.06 -0.34 HuntingtonBcshs HBAN 10.56 0.05 WillisTowersWatson WLTW 128.75 0.68
OccidentalPetrol OXY 75.21 -0.23 SpectrumBrndsHldgs SPB 118.20 0.06
WynnResorts WYNN 99.41 2.68
Borrowing Benchmarks | WSJ.com/bonds JamesHardieADR JHX 15.32
JohnsJohns JNJ 114.49
0.02
1.71
Och-ZiffCapMgmt OZM 4.17
OldRepublic ORI 19.08
0.08
0.03
SpiritAeroSystemsA SPR 46.85
SpiritRealtyCap SRC 11.50
0.06
0.05
WestpacBankingADR WBK 21.83
WestRock WRK 39.87
-0.24
0.28
IdexxLab IDXX 88.89
IcahnEnterprises IEP 54.60
0.71
-0.60 Xilinx XLNX 47.12 -0.25
JohnsonControls JCI 44.97 0.22 Weyerhaeuser WY 31.33 0.01 Illumina ILMN 147.10 1.32 Yahoo YHOO 37.15 0.50
OmegaHealthcare OHI 32.21 0.27 Sprint S 3.77 0.02
Yandex YNDX 20.63 0.07
Money Rates June 2, 2016 JonesLangLaSalle JLL 118.27
JoyGlobal JOY 20.36
0.16
3.66
OmnicomGroup OMC 83.04
OpkoHealth OPK 10.65
0.09
0.12
StJudeMedical STJ 78.40
StanleyBlDck SWK 113.98
0.13
0.44
Whirlpool WHR 175.03
WhiteWaveFoods WWAV 45.93
-0.20
0.79
Incyte
Intel
INCY 87.71
INTC 31.76
2.53
0.10 ZillowGroupClA ZG 29.65 0.74
JuniperNetworks JNPR 23.46 0.23 Oracle ORCL 38.66 Williams WMB 22.60 0.01 Intuit INTU 108.12 0.92 ZillowGroupClC Z 29.14 0.80
-1.60 StarwoodHotels HOT 75.38 1.04
Key annual interest rates paid to borrow or lend money in U.S. and s KARAuctionServices KAR 41.28 -0.20 OrangeADR ORAN 17.30 -0.10 StarwoodPrTr STWD 20.88 0.16 WilliamsPartners WPZ 33.00 0.49 IntuitiveSurgical ISRG 639.44 1.75 ZionsBancorp ZION 28.67 0.28
international markets. Rates below are a guide to general levels but KBFinancialGrpADR KB 28.80 0.25 OrbitalATK OA 89.77 1.21 StateSt STT 63.00 0.04 WiproADR WIT 12.14 -0.04 JD.comADR JD 23.66 -0.13
NYSE MKT
dont always represent actual transactions. KKR KKR 13.66 0.03 OrixADR IX 68.15 -0.85 StatoilADR STO 15.89 -0.05 WooriBankADR WF 25.28 0.14 JackHenry JKHY 85.27 0.72
KTADR KT 14.24 -0.13 OwensCorning OC 51.19 -0.62 Steris STE 69.82 0.10 Workday WDAY 78.18 0.80 JazzPharma JAZZ 155.99 1.27 BritishAmTobADR BTI 120.58 -0.10
Inflation KSCitySo KSU 91.77 -0.62 s PG&E PCG 60.60 0.29 STMicroelectronics STM 6.03 0.04 WyndhamWorldwide WYN 68.54 0.99 JetBlue JBLU 17.97 0.04 CheniereEnergy LNG 34.01 1.77
Kellogg K 74.53 -0.37 PNC FnlSvcs PNC 90.01 0.27 Stryker SYK 112.66 1.00 XL Group XL 33.94 -0.29 s KLA Tencor KLAC 73.27 0.14 CheniereEngyPtnr CQP 30.43 0.67
April index Chg From (%) Week 52-WEEK KeyCp KEY 12.96 0.07 POSCOADR PKX 43.89 -0.02 SumitomoMitsADR SMFG 6.22 -0.13 XcelEnergy XEL 41.40 -0.16 KraftHeinz KHC 84.78 0.83 ImpOil IMO 31.60 -0.22
level March '16 April '15 Latest ago High Low

U.S. consumer price index Commercial paper

All items 239.261 0.47 1.1 30 to 270 days n.q. ... ... ... New Highs and Lows | WSJ.com/stocks Stock
52-Wk %
Sym Hi/Lo Chg Stock
52-Wk %
Sym Hi/Lo Chg Stock
52-Wk %
Sym Hi/Lo Chg
Core 246.992 0.26 2.1
Commercial paper (AA financial) The following explanations apply to the New York Stock Exchange, NYSE Arca, NYSE MKT and Nasdaq Stock iShEdgeMSCIUSASize SIZE 68.30 0.5 CaesarsAcqnClA CACQ 10.21 1.8 PermaFix PESI 4.98 2.7
Market stocks that hit a new 52-week intraday high or low in the latest session. iShiBondsDec2017Cp IBDJ 25.10 -0.1 CelatorPharm CPXX 30.32 0.3 PSRuss1000LowBeta USLB 25.95 0.2
International rates 90 days 0.60 0.68 0.68 0.12 % CHG-Daily percentage change from the previous trading session.
iShMSCIBelgiumCap EWK 18.53 0.2 CntlGarden CENT 20.05 2.6 PwrShSP InfTech PSCT 56.76 0.5
Thursday, June 2, 2016 JohnHancockIndls JHMI 25.84 ... CntlGarden A CENTA 19.41 2.4 QCRHoldings QCRH 27.86 0.5
Week 52-Week Euro commercial paper
Latest ago High Low
30 day
52-Wk % 52-Wk % 52-Wk % JohnHancockUtils JHMU 25.35 2.4 CommerceBancshares CBSH 49.41 0.3 ReataPharmClA RETA 16.00 7.3
n.q. n.q. -0.02 -0.14 Stock Sym Hi/Lo Chg Stock Sym Hi/Lo Chg Stock Sym Hi/Lo Chg JPMorganDivRetUS JPUS 56.68 0.4 CommunityWestBcshs CWBC 7.55 0.7 ReavesUtilitiesETF UTES 30.51 ...
Two month n.q. n.q. -0.01 -0.09
Prime rates Three month FifthSt5.875%Nt24 FSCE 25.49 0.1 RylBkScot pfR RBSpR 25.47 0.4 PwrShrBldAmBdP BAB 30.79 0.3 CommVaultSystems CVLT 46.75 0.5 RedRockResortsClA RRR 20.74 1.6
n.q. n.q. -0.01 -0.08
U.S. 3.50 3.50 3.50 3.25 Four month n.q. n.q. 0.00 0.00
NYSE highs - 134 FreshDelMonte FDP 53.52 1.4 STAGIndustrial STAG 21.79 1.3 PwrShsFnlPfd PGF 19.07 -0.2 CornerstoneOnDemnd CSOD 42.04 3.0 SelectiveInsurance SIGI 38.67 ...
Canada 2.70 2.70 2.85 2.70 ABMIndustries ABM 34.58 0.6 FullrHB FUL 46.21 0.3 ScienceApplicat SAIC 55.88 0.7 PwrShsAerospc PPA 37.28 0.5 CorVel CRVL 51.99 8.8 Semtech SMTC 24.68 -0.9
Five month n.q. n.q. 0.01 0.01
Japan 1.475 1.475 1.475 1.475 AgilentTechs A 46.15 -0.1 GlblPymts GPN 78.92 1.6 SeniorHousing5.625 SNHN 25.75 0.9 InvGradeCorpBdPort PFIG 26.94 0.3 CrackerBarrel CBRL 167.77 2.0 ShenandoahTelecom SHEN 33.38 4.5
Six month n.q. n.q. 0.02 0.02
Alleghany Y 547.98 0.4 GoldmanSachsPfdN GSpN 26.93 0.8 SCETrI5.625%Pfd. SCEpF 26.33 0.7 PwrShsHiYld PEY 15.15 0.3 DollarTree DLTR 91.77 0.3 SiliconMotionADR SIMO 46.21 -2.6
Policy Rates ApolloInvNts2043 AIY GrtPlnEngy pfE GXPpE 101.25 ... SowestGas SWX 70.84 0.1 PwrShrPfdETF PGX 15.17 -0.1 DormanProducts DORM 55.76 2.4 SouthsideBcshs SBSI 30.52 0.6
Libor 26.88 1.2
Euro zone 0.00 0.00 0.05 0.00 AquaAmerica WTR 33.00 0.5 HDFCBankADR HDB 65.58 1.2 Teleflex TFX 166.28 1.8 S&P400LowVol XMLV 37.89 0.3 DreamWorksA DWA 40.39 0.2 TalmerBancorp TLMR 20.25 0.5
One month 0.46305 0.44970 0.46955 0.18300 S&P600LowVol XSLV 36.64 0.2 EldoradoResorts ERI TimberlandBancorp TSBK 15.29
Switzerland 0.50 0.50 0.50 0.50 ArmstrongFlooring AFI 18.02 5.2 HnckJ PfdInco HPI 22.70 0.4 ThermoFisherSci TMO 153.70 0.3 15.31 0.1 0.2
Three month 0.68010 0.66655 0.68580 0.27890 SPDRFactSetInnTech XITK 56.20 0.6 FacebookClA FB 135.60 TwoRiverBancorp TRCB 10.97
Britain 0.50 0.50 0.50 0.50 ArrowElec ARW 65.97 1.1 Hanovr6.35%Deb2053 THGA 26.64 -0.2 TootsieRoll TR 36.91 1.4 0.1 -0.2
Six month 0.98390 0.97560 0.99310 0.42185 SPDR S&P Div SDY 82.35 0.4 FTAltAbsoluteRet FAAR 31.00 0.6 USMDHoldings USMD 20.95 2.9
Australia 1.75 1.75 2.00 1.75 AspenInsHldgsPfd AHLpC 27.89 0.4 HlthcrRlty HR 32.27 0.5 TreeHouseFoods THS 96.02 1.6
One year 1.33240 1.32270 1.33740 0.74795 TeucriumSugarFund CANE 11.85 2.5 FTRBAQualityIncm QINC 22.14 0.6 UltaSalon ULTA 238.76 0.2
BWXTechnologies BWXT 35.72 0.2 IllinoisToolWorks ITW 107.12 0.4 TriContl$2.50Pfd TYp 53.44 1.8
Overnight repurchase Ingevity NGVT 32.05 2.2 TycoInternational TYC 43.50 VanEckEnvironSvcs EVX 66.40 2.1 Fiserv FISV 106.65 0.7 Ultratech UTEK 23.31 -0.3
Euro Libor BankofHawaii BOH 72.46 0.8 0.5
U.S. 0.48 0.31 0.54 0.08 Insperity NSP 73.42 0.2 VanEckMornWideMoat MOAT 33.38 0.5 Five9 FIVN 11.23 2.8 UnionBankshares UNB 34.00 1.5
One month Baxalta BXLT 46.52 -0.4 USFoodsHolding USFD 25.44 -0.3
-0.351 -0.354 -0.069 -0.355 InstalledBldgProds IBP 34.73 0.1 VangdHiDivYld VYM 70.85 0.3 FlextronInt FLEX 12.78 0.5 UniversalDisplay OLED 70.58 2.2
BerryPlasticsGroup BERY 40.00 1.1 US PhysTh USPH 59.62 1.0
Three month -0.278 -0.279 -0.009 -0.282 JacobsEngineering JEC WisdmTrMdCp DON 88.65 0.5 G&KServicesClA GK VCA WOOF 65.92
U.S. government rates Six month -0.163 -0.159 0.059 -0.163
BlkRkCB Tr BHK 13.64 0.1 51.06 -0.2 UBS TrIV Trups UBSpD 25.01 ... 76.48 0.5 1.4
HnckJPrem PDT 16.30 1.2 GlbXLongevityThem LNGR 15.80 ... VWR VWR 29.94 2.7
Discount One year -0.028 -0.032 0.175 -0.035
BlkRkIQM Tr BKN 17.37 ...
JPMorganChasePfdW JPMpE 26.96 0.4
UnitedHealthGroup UNH 136.15 1.1 NYSE Arca lows - 16 Hawkins HWKN 45.07 8.5 VanguardTotIntlBd BNDX 56.31 0.1
BlkrckMunYdMIQlty MIY 15.47 0.5 VeevaSystemsClA VEEV 34.64 2.9
1.00 1.00 1.00 0.75 JPM6.125%Dep.Pfd.Y JPMpF 26.79 0.3 BrcliPathVIX ShFut VXX 13.09 -2.8 HlthcrSvcGp HCSG 39.69 0.8 VaronisSystems VRNS 26.00 2.0
Euro interbank offered rate (Euribor) BlRkMuyldLQlty MFT 15.27 0.3 Vishay VSH 13.26 1.7
JPMDepPfdSeriesAA JPMpG 26.58 -0.1 DirexionHlthcrBr3X SICK 34.08 -4.7 HenrySchein HSIC 176.47 1.8 VictoryCEMPUS500 CFO 37.80 0.3
Federal funds BosSci BSX 23.03 1.2 Vornado pfI VNOpI 26.20 0.3
One month -0.350 -0.348 -0.062 -0.351 JPMorganChasePfdP JPMpA 26.13 0.3 DrxMidCapBear 3x MIDZ 32.50 -1.7 HinghamSvg HIFS 135.82 0.7 VictoryCEMPUSSmCp CSB 35.69 0.4
BradyClA BRC 32.40 0.5 W.P.Carey WPC 65.29 0.3
Effective rate 0.4000 0.4000 0.4100 0.0600 Three month -0.262 -0.258 -0.013 -0.262 KARAuctionServices KAR 41.55 -0.5 DirexionSP500Bear SPXS 14.11 -1.0 HuntingtonBcshPfdD HBANO 26.49 -0.3
High 0.5625 0.5625 0.5900 0.3100 Six month -0.153 -0.146 0.051 -0.153
BrandywineRealty BDN 16.05 0.3
L-3Communications LLL 140.56 1.1
Wash Reit WRE 29.81 0.1
DXNTOTMKTBEAR1X TOTS 18.12 -0.5 ICF Intl ICFI 41.55 0.8 Nasdaq lows - 25
BurlingtonStores BURL 62.92 0.9 Waters WAT 140.11 0.9
PrShrsMdCp MYY MYY
Low 0.3500 0.3500 0.3600 0.0200 One year -0.017 -0.014 0.171 -0.028 LabCpAm LH 129.57 1.0 14.77 -0.5 icad ICAD 6.21 1.1 ARCapAcqnWt AUMAW 0.05 ...
CSTBrands CST 45.28 18.2 WeisMarkets WMK 52.30 1.0
ProShrShrtS&P SH
Bid 0.3700 0.3700 0.5500 0.0400 LexingtonRealtyTr LXP 9.62 0.5 19.85 -0.3 Immunomedics IMMU 5.44 6.2 AccuShSptCBOEVIXUp VXUP 5.24 -1.8
Value 52-Week CableOne CABO 513.67 2.3 WellCareHealth WCG 105.49 2.6
ProShrShrtSmCp SBB
Offer 0.3800 0.4000 0.5600 0.0800 LibertyPropertyTr LPT 37.66 ... 47.37 -1.3 IntegraLifeSci IART 77.98 0.5 Big5SportingGoods BGFV 8.15 1.4
Latest Traded High Low Cablevision CVC 34.76 0.1 WestPharmSvcs WST 75.73 0.7
ProSharesUltVIXST UVXY 10.07 -5.3
Lowe's LOW 80.76 0.6 Itron ITRI 44.69 ... CFUn CFCOU 9.95 0.1
Treasury bill auction CalWtrSvc CWT 29.57 0.1 Xylem Inc. XYL 45.21 0.9
ProShrShtMidCap400 SMDD 24.75 -3.0
DTCC GCF Repo Index M&TBankSeriesC MTBpC1145.00 ... JanusSmCpGwthAlpha JSML 27.82 1.7 Cerecor CERC 2.18 1.3
Care.com CRCM 9.19 1.2 YirendaiADR YRD 16.64 7.5
ProShUltProShS&P SPXU 26.57 -0.8
4 weeks 0.265 0.265 0.295 0.000 Treasury 0.434 85.960 0.639 0.075 MDUResourcesGroup MDU 23.07 1.3 KLA Tencor KLAC 73.65 0.2 ChampionsOncology CSBR 2.61 -11.0
CellcomIsrael CEL 8.45 0.6 PrShrsMidCp MZZ MZZ
13 weeks 0.340 0.350 0.350 0.000 MBS 0.424 110.870 0.705 0.087 CharlesRiverLabs CRL 87.95 1.1
MFS HiIncoMuni CXE 5.48 0.4 NYSE lows - 7 ProShrsUShrt S&P SDS
33.04
17.89
-1.3
-0.4
KellyServicesClB KELYB 20.00 -1.2 Chanticleer HOTR 0.48 -0.4
26 weeks 0.475 0.480 0.585 0.065 MGMGrowthProp MGP 24.02 0.5 LeggMasonUSDivCore UDBI 26.23 0.7 Check-Cap CHEK 1.55 -5.5
Open Implied CitigrpPfdJFixFltg CpJ 28.86 -0.1 BioAmberWt BIOA/WS 0.57 -32.7 ProShrUSSemi SSG 36.42 -0.8
Marsh&McLennan MMC 66.44 0.4 LibertyBroadbandC LBRDK 60.20 0.9 ChinaNetOnlineHldg CNET 0.46 0.7
Settle Change Interest Rate ClearwaterPaper CLW 63.56 0.8 DeVryEducation DV 15.36 -13.0 ProShrUlShtSmC600 SDD 31.00 -1.6
Secondary market MedPropTr MPW 14.84 1.2 MKSInstruments MKSI 41.67 0.7 Conns CONN 8.48 -26.3
ColonyStarwood SFR 27.93 1.5 MedleyCapNotes2019 MCQ 25.62 Exterran EXTN 11.66 0.2 ProShsVIXSTFut VIXY 8.66 -2.5
DTCC GCF Repo Index Futures ... MarketAxess MKTX 141.64 0.6 Daktronics DAKT 6.16 -3.0
Fannie Mae Convergys CVG 28.43 -0.3 HarteHanks HHS 0.90 -3.1
Medtronic MDT 83.29 3.1 MichaelsCos. MIK 30.46 1.9 Erickson EAC 0.56 -17.1
30-year mortgage yields Treasury Jun 99.545 0.005 3207 0.455 CotivitiHoldings COTV 19.86 4.5 ModelN MODN 12.96 4.0 J.G.WentworthClA JGW 0.53 -1.1 NYSE MKT highs - 3 MicrochipTech MCHP 51.94 ... FenixParts FENX 3.70 -0.5
Treasury Jly 99.490 unch. 1727 0.510 CurtissWright CW 84.67 0.5 MolsonCoors A TAP/A 101.83 1.2 MovadoGroup MOV 19.85 -1.2 Chase CCF 59.50 0.9
30 days 3.170 3.197 3.750 2.979 Middleby MIDD 125.74 1.0 GeneralCommClA GNCMA 14.46 0.9
Treasury Aug 99.375 -0.005 1167 0.625 DCT IndlTr DCT 43.60 0.4 MurphyUSA MUSA 70.29 2.2 SignetJewelers SIG 84.80 -6.6 SenseonicsHoldings SENS 3.96 2.1
60 days 3.206 3.233 3.788 2.998 MidlandStatesBncp MSBI 23.41 1.6 IgniteRestaurant IRG 2.01 -7.8
DTEEnergyDeb2076 DTJ 24.95 0.2 NCIBuildingSystems NCS 16.43 TrioTech TRT 3.98 0.5
Weekly survey DeluxeCp DLX 67.01 1.0 NeenahPaper NP 69.86
2.3
0.1
NYSE Arca highs - 37 MinervaNeurosci NERV 15.84 3.0 JaguarAnimalHealth JAGX 1.31 ...
MtnProvDiamonds MDM 5.04 2.5 Jamba JMBA 11.00 0.4
Other short-term rates
Latest Week ago Year ago DollarGeneral DG 91.56 0.2 Nevro NVRO 74.48 0.9 CSX2xAlerianMLPETN AMJL 25.95 0.5 NYSE MKT lows - 4 Nanometrics NANO 19.33 0.8 MoSys MOSY 0.35 -0.3
Donaldson DCI 36.65 7.3 NuveenBuildAmBdOp NBD 22.34 0.3 S&P2xDivAristoETN SDYL 62.08 0.4 DigitalPower DPW 0.35 -5.4 Nuvasive NUVA 57.12 1.9 RocketFuel FUEL
Week 52-Week 2.38 2.0
Freddie Mac DrewIndustries DW 78.42 1.6 NuveenHiIncmDec19 JHD 10.20 0.7 ETRACS2xMLvAlerian MLPQ 51.69 2.3 ElephantTalk ETAK 0.14 -14.0
Latest ago high low NVIDIA NVDA 47.54 0.7 SearsHoldingsWt SHLDW 3.61 1.9
DreyfStrMuni LEO 9.28 ... NuvNJ NXJ 14.76 0.1 ETRACS2xMLevS&PMLP MLPZ 52.83 0.6 Reeds REED 2.88 -7.1
30-year fixed 3.66 3.64 3.87 OpenText OTEX 59.86 0.4 SportsmanWarehouse SPWH 8.08 1.4
Call money DukeRealty DRE 23.88 0.3 NuvNC Prm NNC 14.40 -0.3 E-TRACS Food FUD 21.21 1.6 SparkNtwk LOV 1.47 5.4 OraSureTechs OSUR 7.97 Tessco Tech TESS
15-year fixed 2.92 2.89 3.08 0.3 12.36 -2.3
DupontFabrosPfdC DFTpC 25.87 0.5 NuvPA Inv NQP 15.18 0.3 ElemntsRogrMrngstr WMW 23.31 -0.4 Orbotech ORBK 28.81 0.7 VS2xVIXMedTerm TVIZ 11.53 -2.0
2.25 2.25 2.25 2.00 Five-year ARM 2.88 2.87 2.96
ESCO Tech ESE 40.63 -0.2 NuvSelTxF3 NXR 15.54 0.6 FrstTrstGlblEn FAN 12.38 ... Nasdaq highs - 88 PRGXGlobal PRGX 5.06 1.4 VS2xVIXShortTerm TVIX 2.28 -4.6
EastGroup EGP 64.80 -0.1 PG&E PCG 60.60 0.5 FstTrValDivFd FVD 26.38 0.2 Amerisafe AMSF 62.16 1.2 Paychex PAYX 54.95 0.9 VSVIXShortTerm VIIX 17.67 -2.9
Notes on data: EatonVanceHiIn2021 EHT 10.09 ... ParsleyEnergyClA PE 26.73 0.9 GuggenS&P500EWTech RYT 95.96 0.4 Amazon.com AMZN 728.28 1.2
U.S. prime rate is effective December 17, 2015. Discount rate is effective December 17, 2015. U.S. EatonVanceMuniTr EOT 22.86 -0.1 PiedmontNaturalGas PNY 60.26 iPathBloomSoftsTR JJS 36.72 5.3 AppliedMaterials AMAT 24.65 0.6
Online>>
0.1
prime rate is the base rate on corporate loans posted by at least 70% of the 10 largest U.S. banks; Entercom ETM 13.19 1.8 PublicStoragePfdZ PSApZ 28.18 iPathBloomSugarTR SGG 41.72 5.4 AquaMetals AQMS 13.07 -2.9
Other prime rates arent directly comparable; lending practices vary widely by location; DTCC GCF
0.2
Repo Index is Depository Trust & Clearing Corp.'s weighted average for overnight trades in applicable EnvivaPartners EVA 24.64 6.0 QEPResources QEP 19.53 1.7 iPathSDJUBSSugar SGAR 28.20 2.8 AveXis AVXS 47.17 1.0 During the trading day, 52-week highs and
CUSIPs. Value traded is in billions of U.S. dollars. Futures on the DTCC GCF Repo Index are traded on EnzoBiochem ENZ 6.53 -1.0 QuestDiag DGX 78.22 1.2 iPathPBSofts GRWN 23.38 2.5 BroadSoft BSFT 44.49 0.7
NYSE Liffe US. Fabrinet FN 37.25 -0.9 Raytheon RTN 132.98 0.7 iShCoreDivGrowth DGRO 27.28 0.3 BroadWindEng BWEN 5.32 11.0
lows are updated hourly at WSJMarkets.com.
Sources: Federal Reserve; Bureau of Labor Statistics; DTCC; SIX Financial Information; FairIsaac FICO 114.69 1.3 ReinsuranceGrp RGA 99.83 ... iShSelectDividend DVY 83.37 0.3 CA CA 32.81 1.0 Lists for each market are available free, along
General Electric Capital Corp.; Tullett Prebon Information, Ltd. FidelityNtlInfo FIS 75.46 0.9 RiceMidstreamPtrs RMP 19.23 2.8 iShUSMedDevices IHI 133.21 1.1 CAS MedSys CASM 2.14 6.6 with easy access to charts and headlines.
C8 | Friday, June 3, 2016 THE WALL STREET JOURNAL.

Email: heard@wsj.com
HEARD ON THE STREET FINANCIAL ANALYSIS & COMMENTARY WSJ.com/Heard

OPEC: No Way to Run a Cartel OVERHEARD Bigger Cost

For Being
Look ma, no hands! though, that was just under At first glance, Wall Street
What Meeting?
For a short while it
seemed that the Organiza-
tion of the Petroleum Ex-
West Texas Intermediate oil
half of global supply; today
it is one-third.
This naturally makes
seems to have it in for Apple.
But looks can be deceiving.
It was a point worth re-
A Big Bank
price per barrel Thursday
porting Countries would OPEC less influential, but it membering as Apples stock Say this about the Federal
start acting like a cartel $50 faces two more problems. took another dip Thursday. Reserve: It doesnt kid
again by putting a ceiling on One is that its most powerful That happened after Goldman around when it comes to
the groups production of 49 members, Saudi Arabia and Sachs cut its price target to bank regulation. Bank-stock
crude. But that was wishful Iran, are in a fight for mar- $124 from $136, citing low- investors have to take it seri-
thinking given what hap- ket share and involved in re- ered expectations for the ously, too.
pened in April at the oil pro- 48 gional proxy wars. So they iPhone business. It is actually Fed officials, notably gov-
ducers summit in Doha. Ir- are unlikely to cooperate. A the second such move for ernor Daniel Tarullo, have
CHRISTIAN BRUNA/EPA

reconcilable political and 47 lack of unanimity makes a Goldman since Apples ill-re- said in the past banks should
economic differences be- cartel unworkable. ceived fiscal second-quarter expect annual stress tests
tween Saudi Arabia and Iran An even thornier issue is report on April 26, and the to get more difficult each
46
torpedoed a proposed pro- that technology has unlocked broker is hardly alone. Apples year. That has happened in
duction freeze. 9 a.m. ET 10 11 noon 1 2 vast but expensive uncon- stock has had 28 price-target terms of the adverse scenar-
Those same differences Source: FactSet ventional oil deposits. That reductions since the report, iosranging from deep re-
again led to a lack of action THE WALL STREET JOURNAL. OPEC headquarters in Vienna puts an upper level on long- according Thomson Reuters. cessions to financial stocks
at Thursdays OPEC meeting, term oil prices of perhaps But Apples low valuation under which their balance
when they made no decision trations report on invento- near record levels, the only $60 or $70 a barrel, not the also has kept most analysts sheets must hold up.
regarding output. Delegates ries helped crude futures shortages possible are local- $100-plus seen two years bullish. About 87% of them But it also now appears to
put a brave face on this sit- make up most of their post- ized, not systemic. After ago. Any higher and wells rate the stock as a buy, ac- be happening in terms of the
uation. There was consen- OPEC losses. breaking briefly through the that can produce oil eight cording to FactSet, compared amount of capital banks will
sus that market fundamen- The market really is get- symbolic $50-a-barrel mark months after being drilled with 71% a year ago. Apples have to hold. In comments
tals are working and there ting tighter as U.S. shale out- last week, crude benchmarks can flood the market. shares were near their peak Thursday, Mr. Tarullo sig-
wasnt pressure on OPEC to put declines. The process has have struggled to gain steam So is OPEC over? Not nec- then with worries growing naled the Fed will propose
think about influencing sup- been given an unexpected and were paying little heed essarily. Once the market about a slowing iPhone cycle. later this year that stress
ply and demand, said Mo- helping hand by outages in to the OPEC meeting. Even balances and Iran ramps up Not coincidentally, Apples val- tests include capital sur-
hammed al-Sada, Qatars en- Canada and Nigeria. Venezu- the brief hope of a produc- production, it can return, al- uation has gone from nearly charges applying to the larg-
ergy minister. ela, another trouble spot tion ceiling was mostly dis- beit as a pale shadow of its 11 times forward earnings est firms. The message is:
The market obliged him given economic chaos, could missed by oil traders. 1970s dominance, to putting then to about 8 times now, You can be as big as you
right on schedule. Shortly af- add to the pressure. OPEC now produces about a floor under prices. excluding net cash. want, but you will pay for it.
ter the meeting in Vienna But that is pretty mild for 32 million barrels of crude For ceilings, the invisible That is a bargain few are At the moment, that is
ended Thursday, the U.S. En- now. With global crude and daily, slightly more than it hand will have to do from willing to pass up. painful, given superlow in-
ergy Information Adminis- refined-product inventories did 40 years ago. Back then, now on. Spencer Jakab terest rates, sluggish global
growth and subdued trading
conditions. It will take time,

The ECBs Draghi Plays a Waiting Game on Interest Rates and a more normal economic
and interest-rate environ-
ment, for investors to decide
Markets sometimes seem months and because policy that the forecasts will need six months before the end if the cost is worth it.
to believe Mario Draghi can Flat Forecast was loosened in March. to be revised later this date announced for asset Banks insist there are
almost walk on water. Just a ECB forecasts for eurozone In the end, the forecast yearperhaps with the ben- purchases. Mr. Draghi under- benefits to being big, aside
few words from him can ination for 2016 was lifted margin- efit of more evidence on the lined again that these pur- from the idea of being too
change the outlook drasti- March June ally to 0.2% from 0.1%, while effect of the ECBs expanded chases could be extended if big to fail. These include
cally. Thursdays appearance 1.5% the central banks 2017 and stimulus measuresor the necessary. With just six economies of scale, being
from the European Central 2018 forecasts were left un- central bank might yet need months of the program left, able to serve multinational
Bank president was more a 1.0 changed at 1.3% and 1.6%, re- to deliver even more stimu- markets will be eager to clients and a diversified
case of treading water. spectively. A generous read- lus. That is even though Mr. know how long an extension business mix that allows one
The main challenge for 0.5 ing would be that at least Draghi was eager to argue might be. unit to take up slack when
Mr. Draghi, in the absence of the forecasts have stopped that current policy and mea- The ECB looks to be play- another falters.
any exciting new policy an- 0 sliding; but they still signal sures yet to be implemented, ing a long game. Mr. Draghi For some, that may be the
nouncements, was to avoid 2016 2017 2018 that the ECB is falling short such as corporate-bond pur- at one point waxed near- case. But for others, by mak-
spooking financial markets. Source: European Central Bank of its objective of returning chases and a new bank-lend- philosophical about the ing it ever more expensive to
He succeeded in the short inflation to close to 2%. ing program that start in ECBs policy settings. For stay big, the Feds latest plan
termmoves in the euro, ECBs forecasts for inflation. They also show that un- June, are having an impor- interest rates to be higher will hasten change. What
stocks and bonds were There had been an expecta- derlying inflationary forces tant effect. tomorrow, they have to be may end up being OK for the
muted as he spoke. But there tion that these forecasts remain weak. Mr. Draghi in September now looks like low today, he said. J.P. Morgan Chase goose
still are puzzles for investors would be shifted higher, in particular cited the absence a key meeting. It will mark At the moment, tomorrow may not be as good for the
to figure out. part because of the sharp in- of wage pressures. the publication of another looks a very long way off. Citigroup or Bank of Amer-
The biggest surrounds the crease in oil prices in recent The implication is either set of forecasts and comes Richard Barley ica gander. David Reilly

Dividend Changes Company Symbol

Amount
Yld % New/Old Frq
Payable /
Record Company Symbol
Amount
Yld % New/Old Frq
Payable /
Record Company Symbol
Amount
Yld % New/Old Frq
Payable /
Record
Dividend announcements from June 2. BlkRk Credit Alloc Incm BTZ 7.1 .076 M Jun30 /Jun15 Eaton NJ EVJ 4.2 .049 M Jun20 /Jun13 Nuveen CA Div 2 NVX 4.9 .066 M Jul01 /Jun15
BlkRk Debt Strat Fd DSU 6.8 .02 M Jun30 /Jun15 Eaton NY Trust EVY 4.3 .0517 M Jun20 /Jun13 Nuveen CA Div Fnd NAC 5.4 .074 M Jul01 /Jun15
Amount Payable / BlkRk Engy Res Tr BGR 6.7 .0776 M Jun30 /Jun15 Eaton OH Trsut EVO 4.7 .06092 M Jun20 /Jun13 Nuveen CA Mun Value Fd 2 NCB 4.4 .065 M Jul01 /Jun15
Company Symbol Yld % New/Old Frq Record BlkRk Enh Cap Inco CII 8.7 .10 M Jun30 /Jun15 Eaton PA Trust EVP 4.3 .0472 M Jun20 /Jun13 Nuveen CA Muni Value NCA 4.3 .039 M Jul01 /Jun15
BlkRk Enhncd Govt Fd EGF 4.3 .049 M Jun30 /Jun15 Eaton Vance BuyWrite Opp ETV 8.9 .1108 M Jun30 /Jun23 Nuveen California AMT NKX 5.3 .072 M Jul01 /Jun15
Increased Eaton Vance CA Mun Bd EVM 5.3 .057 M Jun30 /Jun23 Nuveen Connecticut Prem NTC 4.9 .055 M Jul01 /Jun15
Blkrk FltRt InTr BGT 5.3 .0583 M Jun30 /Jun15
Empire State Realty Trust ESRT 2.2 .105 /.085 Q Jun30 /Jun15 Eaton Vance Eqty Inco Fd EOI 7.8 .0864 M Jun30 /Jun23 Nuveen Credit Strt Inc Fd JQC 7.6 .0515 M Jul01 /Jun15
BlkRk Health Sci BME 6.6 .20 M Jun30 /Jun15
Helmerich & Payne HP 4.8 .70 /.6875 Q Sep01 /Aug15 Eaton Vance Eqty Inco II EOS 7.9 .0875 M Jun30 /Jun23 Nuveen Div Commodity Fd CFD 7.4 .058 M Jul01 /Jun30
BlkRk Intl Grwth&Inco BGY 9.9 .049 M Jun30 /Jun15
Funds and investment companies BlkRk Muni Inter Dur MUI 4.4 .0555 M Jul01 /Jun15 Eaton Vance FR Incm Plus EFF 6.7 .085 M Jun30 /Jun23 Nuveen Div Fnd NAD 5.4 .0695 M Jul01 /Jun15
AdvntClymr Convertible II AGC 9.9 .047 M Jun30 /Jun15 BlkRk Muni NY Inter Dur MNE 3.9 .0498 M Jul01 /Jun15 Eaton Vance FR Incm Tr EFT 6.5 .075 M Jun30 /Jun23 Nuveen Dow 30 Dynamic DIAX 7.4 .266 Q Jul01 /Jun15
AdvntClymrFd AVK 8.0 .0939 M Jun30 /Jun15 BlkRk MuniAssets Fd MUA 4.6 .0575 M Jul01 /Jun15 Eaton Vance Mun Bd Fd EIM 5.1 .058 M Jun30 /Jun23 Nuveen Enh AMT-Fr Muni NVG 5.8 .076 M Jul01 /Jun15
AllianzGI Conv & Incm NCV 12.9 .065 M Jul01 /Jun13 BlkRk Munienhanced MEN 5.4 .0565 M Jul01 /Jun15 Eaton Vance Mun Bd Fd II EIV 4.5 .0514 M Jun30 /Jun23 Nuveen Enh Muni Credit NZF 5.9 .076 M Jul01 /Jun15
AllianzGI Conv & Incm II NCZ 13.1 .0575 M Jul01 /Jun13 BlkRk MuniHldgs MHD 5.3 .081 M Jul01 /Jun15 Eaton Vance Mun Incm 2028 ETX 4.2 .07083 M Jun30 /Jun23 Nuveen Enhncd Mun Val Fd NEV 6.0 .08 M Jul01 /Jun15
AllianzGI Div Incm ACV 11.2 .167 M Jul01 /Jun13 BlkRk MuniHldgs CA Qlty MUC 4.6 .0615 M Jul01 /Jun15 Eaton Vance Mun Income EVN 5.2 .0625 M Jun20 /Jun13 Nuveen Flexible Inv Incm JPW 8.7 .113 M Jul01 /Jun15
Avenue Incm Cr Strat Fd ACP 12.1 .12 M Jun30 /Jun13 BlkRk MuniHldgs II MUH 5.4 .0745 M Jul01 /Jun15 Eaton Vance Sr EVF 6.8 .034 M Jun20 /Jun13 Nuveen Gl Equity Incm Fd JGV 7.8 .234 Q Jul01 /Jun15
BlackRck Rscs Comm Str Tr BCX 7.1 .0446 M Jun30 /Jun15 BlkRk MuniHldgs Inv MFL 5.5 .0715 M Jul01 /Jun15 Eaton Vance Tax-Mng Div ETY 9.5 .0843 M Jun30 /Jun23 Nuveen Gl Hi Incm Fd JGH 11.1 .132 M Jul01 /Jun15
BlackRock CA Muni 2018 BJZ 2.2 .0277 M Jul01 /Jun15 BlkRk MuniHldgs Qlty II MUE 5.3 .064 M Jul01 /Jun15 Eaton Vance Tax-Mngd Opp ETW 11.0 .0973 M Jun30 /Jun23 Nuveen Hi Incm 2020 JHY 6.7 .057 M Jul01 /Jun15
BlackRock CA Municipal Tr BFZ 4.9 .0672 M Jul01 /Jun15 BlkRk MuniHldgs Quality MUS 5.6 .0675 M Jul01 /Jun15 Eaton Vnce NY ENX 5.1 .05983 M Jun30 /Jun23 Nuveen High Incm Dec18 JHA 6.0 .0505 M Jul01 /Jun15
Blackrock Core Bond Tr BHK 6.3 .071 M Jun30 /Jun15 BlkRk MuniVest MVF 5.5 .0495 M Jul01 /Jun15 Eaton Vnce CA2 EIA 4.6 .0517 M Jun30 /Jun23 Nuveen Ins CA NXC 3.9 .0525 M Jul01 /Jun15
BlackRock Corp Hi Yd Fd HYT 8.2 .07 M Jun30 /Jun15 BlkRk MuniVest II MVT 5.5 .079 M Jul01 /Jun15 Eaton Vnce Ins MA MAB 3.9 .0492 M Jun30 /Jun23 Nuveen Insured NY Select NXN 3.9 .046 M Jul01 /Jun15
BlackRock Def Opp Cr Tr BHL 4.6 .051 M Jun30 /Jun15 BlkRk MuniYield MYD 5.5 .072 M Jul01 /Jun15 EatonVance TxAdv Opport ETO 10.0 .18 M Jun30 /Jun23 Nuveen Intermed Dur Mun NID 4.9 .057 M Jul01 /Jun15
BlackRock Enh Eq Div Tr BDJ 7.2 .0467 M Jun30 /Jun15 BlkRk MuniYld Arizona MZA 4.3 .062 M Jul01 /Jun15 EatonVnc SrFltRate EFR 7.1 .078 M Jun30 /Jun23 Nuveen Invest Qual Muni NQM 5.4 .0735 M Jul01 /Jun15
BlackRock FR Incm Strat FRA 5.5 .061 M Jun30 /Jun15 BlkRk MuniYld CA Fd MYC 5.0 .07 M Jul01 /Jun15 Etn Vn TaxAdv Bd&Opt Strg EXD 9.5 .29 Q Jun30 /Jun23 Nuveen MA Premium Income NMT 4.7 .059 M Jul01 /Jun15
Blackrock Global Trust BOE 9.6 .097 M Jun30 /Jun15 BlkRk MuniYld CA Quality MCA 4.8 .065 M Jul01 /Jun15 Etn Vnc Short Dur Fd EVG 8.0 .09 M Jun30 /Jun23 Nuveen MD Premium Income NMY 4.9 .0555 M Jul01 /Jun15
BlackRock Income Trust BKT 4.9 .0265 M Jun30 /Jun15 BlkRk MuniYld Ins Qlty MFT 5.6 .071 M Jul01 /Jun15 Etn Vnc Tax Mgd Buy-Write ETB 8.1 .108 M Jun30 /Jun23 Nuveen MI Quality Income NUM 5.0 .062 M Jul01 /Jun15
Blackrock Invest BKN 5.0 .072 M Jul01 /Jun15 BlkRk MuniYld Inv MYF 5.8 .078 M Jul01 /Jun15 EtnVnc TaxAdvDiv EVT 8.5 .145 M Jun30 /Jun23 Nuveen Minnesota Mun Incm NMS 4.9 .0665 M Jul01 /Jun15
BlackRock Long-Term Muni BTA 5.2 .0545 M Jul01 /Jun15 BlkRk MuniYld MI Qlty MIY 5.0 .064 M Jul01 /Jun15 EtnVncLtdFd EVV 9.2 .1017 M Jun20 /Jun13 Nuveen Missouri Premium NOM 4.4 .061 M Jul01 /Jun15
BlackRock MA Tax-Exempt MHE 4.4 .053 M Jul01 /Jun15 BlkRk MuniYld NJ Fd MYJ 5.4 .075 M Jul01 /Jun15 EtnVncRskMngd ETJ 11.4 .093 M Jun30 /Jun23 Nuveen Mrtg Opp Term Fd 2 JMT 6.1 .1125 M Jul01 /Jun15
BlackRock MD Muni BZM 3.7 .0474 M Jul01 /Jun15 BlkRk MuniYld PA Quality MPA 4.9 .0623 M Jul01 /Jun15 EtnVncTxAdvGblDiv ETG 8.3 .1025 M Jun30 /Jun23 Nuveen Mtg Oppy Term Fd JLS 5.9 .1135 M Jul01 /Jun15
BlackRock Multi-Sector IT BIT 8.4 .1167 M Jun30 /Jun15 BlkRk MuniYld Qlty II MQT 5.2 .062 M Jul01 /Jun15 EtnVncTxMngGlDvEqInc EXG 11.0 .0813 M Jun30 /Jun23 Nuveen Multi-Market Incm JMM 5.9 .036 M Jul01 /Jun15
BlackRock Mun BAF 5.2 .0685 M Jul01 /Jun15 BlkRk MuniYld Quality MQY 5.3 .0725 M Jul01 /Jun15 EV National Municipal Opp EOT 4.5 .08583 M Jun30 /Jun23 Nuveen Muni 2021 Target NHA 2.4 .02 M Jul01 /Jun15
Blackrock Mun 2018 Term BPK 2.2 .0278 M Jul01 /Jun15 BlkRk NY Muni BQH 4.5 .059 M Jul01 /Jun15 Global Self Storage SELF 5.2 .065 Q Jun30 /Jun17 Nuveen Muni Income Fund NMI 3.9 .0415 M Jul01 /Jun15
BlackRock Mun 2030 Target BTT 4.1 .08 M Jul01 /Jun15 BlRk MuHldg NY Qlty MHN 4.6 .058 M Jul01 /Jun15 Guggenh Bond Mneg Dur Tr GBAB 7.4 .13817 M Jun30 /Jun15 Nuveen Muni Mkt Opp NMO 4.9 .061 M Jul01 /Jun15
BlackRock Mun Inco BBF 5.8 .07238 M Jul01 /Jun15 BlRk Muyld NY Qlty MYN 4.6 .054 M Jul01 /Jun15 Guggenheim Credit All Fd GGM 10.9 .1813 M Jun30 /Jun15 Nuveen Muni Value Fund NUV 3.7 .0325 M Jul01 /Jun15
BlackRock Muni BBK 5.1 .075 M Jul01 /Jun15 BlRkMunyldQltyIII MYI 5.3 .068 M Jul01 /Jun15 Guggenheim Enh Fd GPM 12.6 .24 Q Jun30 /Jun15 Nuveen NC Premium Income NNC 4.1 .049 M Jul01 /Jun15
BlackRock Municipal Trust BFK 5.4 .0711 M Jul01 /Jun15 Credit Suisse High Yld DHY 11.6 .023 M Jun22 /Jun16 Guggenheim Strat Opps Fd GOF 12.1 .1821 M Jun30 /Jun15 Nuveen NJ Div NXJ 5.3 .065 M Jul01 /Jun15
BlackRock NJ Muni BLJ 5.0 .0695 M Jul01 /Jun15 CS X-Links Multi-Asset Hi MLTI 4.3 .0965 M Jun21 /Jun13 HnckJohn TxAdv HTD 5.9 .121 M Jun30 /Jun13 Nuveen NJ Munl Value Fund NJV 3.8 .049 M Jul01 /Jun15
BlackRock NJ Municipal Tr BNJ 5.2 .0696 M Jul01 /Jun15 Cushing Energy Incm Fd SRF 7.3 .057 M Jun30 /Jun16 Invesco Adv Mun Incm II VKI 6.1 .065 M Jun30 /Jun13 Nuveen NY Div Fnd NAN 5.1 .065 M Jul01 /Jun15
BlackRock NY Muni 2018 BLH 1.4 .0177 M Jul01 /Jun15 CushingMLPTotalReturnFd SRV 8.7 .09 M Jun30 /Jun16 Invesco Bond Fund VBF 4.4 .069 M Jun30 /Jun13 Nuveen NY Mun Value 2 NYV 4.0 .0525 M Jul01 /Jun15
BlackRock NY Municipal Tr BNY 4.5 .06 M Jul01 /Jun15 Divers Real Asset Incm Fd DRA 8.1 .11 M Jul01 /Jun15 Invesco CA Value Mun Incm VCV 5.4 .063 M Jun30 /Jun13 Nuveen NY Muni Value Fund NNY 3.8 .0325 M Jul01 /Jun15
BlackRock Science & Tech BST 7.2 .10 M Jun30 /Jun15 Dividend & Income Fund DNI 8.9 .25 Q Jun30 /Jun17 Invesco Credit Opps Fund VTA 8.1 .075 M Jun30 /Jun13 Nuveen Ohio Qual Income NUO 4.8 .065 M Jul01 /Jun15
Blackrock Strategic Muni BSD 5.0 .065 M Jul01 /Jun15 DoubleLine Incm Solutions DSL 9.8 .15 M Jun30 /Jun17 Invesco High Income Tr II VLT 8.4 .0975 M Jun30 /Jun13 Nuveen Pa Investment Qual NQP 5.1 .064 M Jul01 /Jun15
BlackRock Taxable Mun Bd BBN 6.8 .1318 M Jun30 /Jun15 Doubleline Oppor Credit DBL 7.9 .167 M Jun30 /Jun17 Invesco Inv Grade Muni VGM 6.1 .073 M Jun30 /Jun13 Nuveen PA Mun Value Fund NPN 3.8 .052 M Jul01 /Jun15
BlackRock Utility & Infr BUI 7.5 .121 M Jun30 /Jun15 Eagle Growth & Incm Opps EGIF 7.2 .10 M Jun30 /Jun17 Invesco Inv Grade NY Muni VTN 5.5 .0708 M Jun30 /Jun13 Nuveen Performance Plus NPP 5.4 .073 M Jul01 /Jun15
BlackRock VA Muni BHV 4.0 .063 M Jul01 /Jun15 Eatn Vnc MI Muni MIW 4.2 .0533 M Jun30 /Jun23 Invesco Mun Incm Opps Tr OIA 5.0 .0328 M Jun30 /Jun13 Nuveen Preferred & Incm JPI 8.3 .1625 M Jul01 /Jun15
BlackRockDurInco Tr BLW 6.9 .087 M Jun30 /Jun15 Eatn Vnc NJ Muni EMJ 4.4 .0533 M Jun30 /Jun23 Invesco Mun Opportunity VMO 6.2 .0733 M Jun30 /Jun13 Nuveen Preferred Inc Opp JPC 8.0 .067 M Jul01 /Jun15
BlackRockMuni 5.4 .0735 Jul01 /Jun15 Invesco Municipal Trust VKQ 6.0 .068 M Jun30 /Jun13 Nuveen Prem Inco Muni 2 NPM 5.3 .0665 M Jul01 /Jun15
BLE M Eatn Vnc NY Muni NYH 5.1 .05725 M Jun30 /Jun23
BlackRockMuni 2020 3.3 .0448 Jul01 /Jun15 Invesco PA Value Mun Incm VPV 5.6 .0662 M Jun30 /Jun13 Nuveen Premier Muni Inc NPF 5.0 .062 M Jul01 /Jun15
BKK M Eatn Vnc OH Muni EIO 4.1 .0502 M Jun30 /Jun23
BlackRockMuni Tr 5.1 .066 Jul01 /Jun15 Invesco Qlty Mun Inco IQI 5.6 .0635 M Jun30 /Jun13 Nuveen Premium Inco Muni NPI 5.3 .067 M Jul01 /Jun15
BYM M Eatn Vnc PA Muni EIP 5.5 .06442 M Jun30 /Jun23
BlackRockNY TrII 4.8 .066 Jul01 /Jun15 Invesco Senior Income Tr VVR 7.1 .0245 M Jun30 /Jun13 Nuveen Real Asset Incm JRI 8.3 .11 M Jul01 /Jun15
BFY M Eaton CA Trust CEV 4.0 .0463 M Jun20 /Jun13
Blkrck MunHl NJ Qlty 5.1 .0675 Jul01 /Jun15 Invesco Value Mun Incm Tr IIM 4.8 .07 M Jun30 /Jun13 Nuveen Real Estate Fd JRS 8.6 .24 Q Jul01 /Jun15
MUJ M Eaton MA Trust MMV 3.5 .0438 M Jun20 /Jun13
BlkrckNYMuni Qlty 4.3 .052 Jul01 /Jun15 iSh Conservative Allocat AOK 1.3 .03523 M Jun08 /Jun06 Nuveen S&P 500 Buy-Write BXMX 7.4 .238 Q Jul01 /Jun15
BSE M Eaton MI Trust EMI 4.2 .0499 M Jun20 /Jun13
iSh Int Rate Hdgd Corp Bd LQDH 2.6 .19834 M Jun08 /Jun06 Nuveen Sel 3 NXR 3.5 .0455 M Jul01 /Jun15
iSh Int Rate Hi Yield Bd HYGH 5.0 .35309 M Jun08 /Jun06 Nuveen Sel Tax Free NXP 3.6 .0455 M Jul01 /Jun15
iSh Interest Rate Hdg 10+ CLYH 2.6 .05096 M Jun08 /Jun06 Nuveen Sel TF NXQ 3.6 .0445 M Jul01 /Jun15
Exchange-Traded Portfolios | WSJ.com/ETFresearch iSh Interest Rate Hdg EM
iSh Yield Optimized Bd
EMBH
BYLD
3.4
3.0
.06847
.06204
M
M
Jun08 /Jun06
Jun08 /Jun06
Nuveen Select Maturities
Nuveen Select Quality
NIM
NQS
2.9
4.7
.026
.06
M
M
Jul01 /Jun15
Jul01 /Jun15
Largest 100 exchange-traded funds, latest session Closing Chg YTD Closing Chg YTD iShares Curr Hdgd Intl HY HHYX 2.0 .04257 M Jun08 /Jun06 Nuveen Senior Income Fund NSL 7.1 .036 M Jul01 /Jun15
ETF Symbol Price (%) (%) ETF Symbol Price (%) (%) iShrs Mrnngstr Multi Asst IYLD 2.7 .05476 M Jun08 /Jun06 Nuveen Shrt Dur Cr Opp Fd JSD 7.5 .097 M Jul01 /Jun15
Thursday, June 2, 2016 Ivy High Income Opps Fund IVH 11.1 .125 M Jun30 /Jun16 Nuveen TX Qual Income NTX 4.3 .0545 M Jul01 /Jun15
Closing Chg YTD
iSharesMSCIEAFEETF EFA 58.33 ... 0.7 TechSelectSector XLK 44.04 0.09 2.8
JHancock Pr Div PDT 6.6 .09 M Jun30 /Jun13 Nuveen VA Premium Income NPV 4.5 .0545 M Jul01 /Jun15
ETF Symbol Price (%) (%) iShMSCIEmgMarkets EEM 33.37 0.82 3.7 UtilitiesSelSector XLU 49.30 0.04 13.9
John Hancock Finl Opps Fd BTO 5.4 .3701 Q Jun30 /Jun13 NuveenCA 3 NZH 5.2 .067 M Jul01 /Jun15
iShMSCIEurozoneETF EZU 35.02 0.11 0.1 VanEckVectBiotech BBH 112.47 1.5611.4
AlerianMLPETF AMLP 12.61 0.56 4.6 John Hancock Glbl Shrhldr HTY 12.5 .32 Q Jun30 /Jun13 NuveenMuniIncoOpp Fd NMZ 6.4 .076 M Jul01 /Jun15
iShMSCIJapanETF EWJ 11.68 0.85 3.6 VanEckGoldMiner GDX 22.77 0.22 66.0 John Hancock Income Secs 6.1 .2209 Jun30 /Jun13 NuveenTaxAdv 8.8 .258 Jul01 /Jun15
CnsmrDiscSelSector XLY 79.63 0.56 1.9 JHS Q JTA Q
CnsStapleSelSector XLP 53.22
iShNasdaqBiotech IBB 286.28 1.8115.4 VanEckVctrOilSvcs OIH 27.64 0.72 4.5 John Hancock Investors 8.7 .3411 Jun30 /Jun13 NuvFloatRteInco Fd 7.1 .0615 Jul01 /Jun15
0.04 5.4 JHI Q JFR M
DBGoldDoubleLgETN DGP 24.17 iShNatlAMTFrMuniBd MUB 112.26 0.12 1.4 VanEckVectorsPharm PPH 59.87 1.18 8.3 John Hancock Pfd II HPF 7.6 .14 M Jun30 /Jun13 NuvGA2 NKG 4.5 .0535 M Jul01 /Jun15
0.46 33.2
DBGoldDoubleShrt DZZ 6.38 0.3928.1 iShRussell1000Gwth IWF 101.34 0.41 1.9 VanEckVctrRetail RTH 77.40 0.85 0.4 John Hancock Pfd Inc III HPS 7.5 .1222 M Jun30 /Jun13 PCM Fund PCM 10.1 .08 M Jul01 /Jun13
DeutscheXMSCIEAFE DBEF 26.24 0.08 3.4 iShRussell1000ETF IWB 117.29 0.34 3.5 VanEckSemiconduc SMH 57.12 0.02 7.2 John Hancock Pfd Income HPI 7.4 .14 M Jun30 /Jun13 PIMCO California Mun II PCK 6.0 .05375 M Jul01 /Jun13
EnSelectSectorSPDR XLE 66.80 0.13 10.7 iShRussell1000Val IWD 102.88 0.27 5.1 VangdInfoTch VGT 109.93 ... 1.5 Mangd Durtn InvGr Mun Fd MZF 5.1 .0616 M Jun30 /Jun15 PIMCO California Mun III PZC 6.0 .06 M Jul01 /Jun13
FinSelSectorSPDR XLF 23.85 0.21 0.1 iShRussell2000Gwth IWO 140.42 1.07 0.8 VangdSmCapValue VBR 106.63 0.59 8.0 MFS California Muni Fund CCA 4.5 .0495 M Jun30 /Jun16 PIMCO California Muni PCQ 5.5 .077 M Jul01 /Jun13
GuggenheimSP500EqW RSP 81.11 0.43 5.8 iShRussell2000ETF IWM 116.67 0.77 3.6 VangdHlthCr VHT 132.39 1.35 0.4 MFS Charter MCR 8.7 .06139 M Jun30 /Jun16 PIMCO Corporate & Incm PCN 9.1 .1125 M Jul01 /Jun13
HealthCareSelSect XLV 72.53 1.28 0.7 iShRussell2000Val IWN 97.90 0.42 6.5 VangdDivApp VIG 82.23 0.24 5.7 MFS Govt Mkts Income Tr MGF 7.7 .03411 M Jun30 /Jun16 PIMCO Corporate & Incm PTY 10.9 .13 M Jul01 /Jun13
IndSelSectorSPDR XLI 56.04 iShRussell3000ETF IWV 124.46 0.37 3.4 VanguardFTSEDevMk VEA 36.59 0.03 0.4 MFS Hi Inc Muni CXE 5.4 .0245 M Jun30 /Jun16 PIMCO Dynamic Credit Incm PCI 10.6 .16406 M Jul01 /Jun13
0.13 5.7
iShRussellMid-Cap IWR 168.82 0.55 5.4 VanguardFTSEEmgMk VWO 34.04 0.80 4.1 MFS Hi Yld Muni CMU 5.6 .0225 M Jun30 /Jun16 PIMCO Dynamic Income Fund PDI 9.8 .2205 M Jul01 /Jun13
iShIntermCredBd CIU 109.69 0.09 2.2
iShRussellMCValue IWS 74.08 0.42 7.9 VanguardFTSEEurope VGK 49.68 0.28 0.4 MFS Inc Tr MIN 9.2 .0349 M Jun30 /Jun16 PIMCO Global StocksPLUS PGP 11.3 .18335 M Jul01 /Jun13
iSh1-3YCreditBond CSJ 105.35 0.01 0.7
iShS&P500Growth IVW 117.95 0.35 1.9 VangdAllWldxUS VEU 43.72 0.09 0.7 MFS Intermed Hi Inc CIF 10.3 .02137 M Jun30 /Jun16 PIMCO HiInco PHK 13.1 .10346 M Jul01 /Jun13
iSharesTIPSBondETF TIP 114.32 0.34 4.2
iShS&P500ValueETF IVE 93.06 0.29 5.1 VangdGrowth VUG 108.71 0.35 2.2 MFS Invest Grade Muni CXH 4.7 .0405 M Jun30 /Jun16 PIMCO Incm Strategy Fd II PFN 10.6 .08 M Jul01 /Jun13
iSh3-7YTreasuryBd IEI 125.20 0.15 2.1 PIMCO Inco Str Fd PFL 10.7 .09 M Jul01 /Jun13
iSharesUSPreferred PFF 39.48 0.03 1.6 VangdHiDivYld VYM 70.85 0.31 6.1 MFS Multimkt MMT 8.9 .04404 M Jun30 /Jun16
iShCoreHiDividend HDV 80.41 0.19 9.5 PIMCO Income Opportunity PKO 10.0 .19 M Jul01 /Jun13
iShrSilverTr SLV 15.22 0.33 15.4 VngdInter-Term BIV 85.97 0.27 3.5 MFS Munl Inco MFM 5.1 .0315 M Jun30 /Jun16
iShCoreMSCIEAFEETF IEFA 54.25 0.09 0.2 Pimco Muni Inc II PML 5.8 .065 M Jul01 /Jun13
iSh1-3YTreasuryBd SHY 84.82 0.08 0.5 VangIntrCorpBd VCIT 87.32 0.10 3.8 MFS Special Value MFV 10.8 .04891 M Jun30 /Jun16
iShCoreMSCIEmgMk IEMG 40.79 0.77 3.6 PIMCO Muni Inc III PMX 5.9 .0623 M Jul01 /Jun13
iSh7-10YTreasuryBd IEF 109.87 0.31 4.1 VangdLgCap VV 96.51 0.31 3.2 Monroe Capital MRCC 9.4 .35 Q Jun30 /Jun15
iShCoreS&P500ETF IVV 212.06 0.33 3.5 NexPoint Credit Strat Fd NHF 13.6 .24 M Jun30 /Jun23 PIMCO MuniFd PMF 5.8 .08125 M Jul01 /Jun13
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 MORGENSTERN ON FILM

A Riveting Witness D3

PLUS Grace Slick on writing White Rabbit D4

MOVIES | TELEVISION
2016 Dow Jones & Company. All Rights Reserved.
| MUSIC | ART |
ARENA
BOOKS | COMEDY
THE WALL STREET JOURNAL.
| THEATER | WSJ BOOK CLUB | SPEAKEASY | SPORTS
Friday, June 3, 2016 | D1

ARE YOU A
LeBron
LeBron OR A

Curry? What your NBA

superstar choice
says about you
BY BEN COHEN

LEBRON JAMES and Stephen

Curry are the best basketball
players on the planet. Theyre
also so radically different they
might as well belong to sepa-
rate solar systems.
But now, as the sports two
supreme talents face each
other in the NBA Finals, it has
become undeniable that Curry
is one of the first basketball
foils for James. Their unlikely
rivalry is suddenly the most
tantalizing plot in basketball.
It bubbled in last years Finals,
when Currys Golden State
Warriors beat Jamess Cleve-
land Cavaliers, and it is ready
to boil over with another
hugely anticipated Finals
showdown that has seemed al-
most inevitable since the sea-
son began.
The impending matchup be-
tween Curry and Jamesand
their contrasting approaches
has led to the loss of countless
business hours and brain cells
on a question that perhaps
cant be answered: Which one
is better?
This is the debate that has
consumed the NBA all year
long. Its the sports equivalent
of the Beatles vs. the Rolling
Stones. Which band you prefer
is a matter of taste and a mir-
ror of your personality. But
which band is better is an-
other issue altogetherbe-
cause there is no right answer.
There is a similar lack of
consensus in basketball right
now. Last season, it was too
soon to anoint Curry over
James. Next season, it might be
too obvious. But this season,
with Curry peaking and James
still capable of patches of bril-
liance, it is the perfect time to
ask the question and split a
room right down the middle.
James, who is 31 and
slightly past his career prime,
still exudes control on the bas-
ketball court. If there were a
magical basketball factory,
some mythical place where it
was possible to design the
perfect NBA player, the prod-
Please turn to the next page

FROM LEFT: TONY DEJAK/ASSOCIATED PRESS; CHRISTIAN PETERSEN/GETTY IMAGES; BELOW: BERTRAND GUAY/AFP/GETTY IMAGES

Prince Tribute Concerts

Set by Rival Promoters
BY HANNAH KARP
PLANS ARE TAKING SHAPE for tribute con-
certs to memorialize Prince. In keeping with
the late pop stars style, the vision is big but
somewhat mysterious.
Two major promoters are separately
planning Prince tribute concerts as his rela-
tives sort through how best to remember
the performer.
Live Nation Entertainment Inc., the
worlds largest concert promoter, is plan-
ning a show this summer in Princes home-
town of Minneapolis, according to people fa-
miliar with the matter. But Live Nation,
which is trying to get Princes whole family
on board, hasnt announced the event and
could move it to a larger venue in another
U.S. city.
Rival AEG Live, the No. 2 concert pro-
moter, is producing a pair of tribute shows
in London this month. AEG Live is part of
the Anschutz Entertainment Group.
Live Nations event likely would feature
several Prince protgs, some of whom are
already lined up, one of the people said.
While the bill isnt completed, artists whom
Prince mentored in recent years include his
backup band 3rd Eye Girl, Cameroonian pop-
rocker Andy Allo, R&B singer Liv Warfield
and funk-soul artist Judith Hill, who co-pro-
duced her 2015 album Back in Time with
Prince. None of the artists could be reached
to comment. Ms. Hill, who worked as a duet
Please turn to page D6 Live Nation and AEG Live both are planning tribute concerts for Prince, seen in Paris in 2009.
D2 | Friday, June 3, 2016
LeBron James was such a phenomenon in high school, left, that his games were frequently televised on ESPN, while Stephen Curry, right, was an unheralded recruit who ended up at tiny Davidson College.
LEBRON vs. CURRY
Continued from the prior page
uct that rolled off the assembly
line would look an awful lot like
James. He has the 6-foot-8, 250-
pound size to play every position
and the imagination on the court
to invent one of his own. He can
plow through bigger defenders and
pli past quicker ones. Hes skilled,
smart and savvywhich makes
him almost unstoppable. This sea-
son, as the Cavaliers won the
NBAs Eastern Conference, James
put up more than 25 points, six re-
bounds and six assists per 36 min-
utes. Hes the only player in NBA
history to average those numbers
over his entire career.
Curry, who is 28, enters the Fi-
nals after one of the most sublime
NBA seasons ever. What he did
was etherealthe defending cham-
pion Warriors won an unprece-
dented 73 games, and Curry won
the Most Valuable Player Award
unanimously. Curry, who is 6-
foot-3, 180 pounds when draped in
soaking wet towels, is now widely
acknowledged as the
best shooter the NBA
has ever seen after In the last two
shattering his own
record for most 3-
seasons, Curry
pointers in a single has earned
season by more than
40% this year. To put
Jamess
Currys achievement attention as
in perspective, con-
sider the world re-
his exact
cord for the mara- opposite.
thon: 2 hours, 2
minutes and 57 sec-
onds. A runner im-
proving by 40%
would result in a world record of 1
hour, 13 minutes and 46 seconds.
For all their magnetism,
though, Curry and James may not
be attracted to each other often
during the Finals. But when they
are, both players will have mis-
matches they can exploit on of-
fense. James can bully Curry by
backing him down in the post, and
Curry can free himself from James
for a 3-pointer with one ruthless
crossover. And if last years Finals
are any indication, the times they
are matched up will be when the
entire basketball world most
wants to watch them: with the
game on the line. Curry and James
attempted a total of 19 shots last
season when they were hounded
by the other, according to Vantage
Sports, and more than half of them
came in the fourth quarter or
overtime. Curry made six of his 10.
James made none of his nine.
But who is better, Curry or
James, is the NBAs great un-
known. What is known is why you
might prefer one over the other.
The idea comes from a field of psy-
chological research that, in recent
years, has begun to reveal the un-
derlying reasons you adore Curry
and appreciate James. It might be
the most useful way to understand
talent in the NBA today.
James is a basketball natural.
Even as a teenager, adults were
awed in his presence, and he was
such an attraction in high school
that his games were televised on
ESPN more than several NBA
teams. The praise came from peo-
ple with the deepest reservoirs of
basketball wisdom. After one par-
ticularly dazzling performance,
James bumped into Bill Walton on
his way out of the arena and
thanked the Hall-of-Famer for
coming to watch him. No, Wal-
ton said. Thanks for having me.
But the truly crazy thing about
Jamess career is that all that hype
wasnt wrong. James, the four-time
THE WALL STREET JOURNAL.
ARTS & ENTERTAINMENT
James shoots
against Curry in the
NBA Most Valuable Player and two- first game of last
time NBA champion, is as close to a years finals in
sure thing as anyone in sports. He Oakland.
goes to the NBA Finals the way most
people go to the dentist. Including
his four-year stint with the Miami
Heat, James has now made it to the
Finals for six consecutive yearsas
if he keeps a standing appointment.
In the last two seasons, though,
Curry has earned Jamess atten-
tion as his exact opposite. Curry is
not the natural that has become
the norm in the NBA. He is what
psychologists would call a striver.
Its a strange truth that Curry,
the son of an NBA player, has
never really been a natural. The
straight line through his competi-
tive basketball career is that Curry
was underestimated by almost ev-
eryone who evaluated him at al-
most every level of the game.
Jamess advantage is obvious.
Currys is subtle. Hes the least
physically imposing person when-
ever hes on the NBA court. Be-
cause he looks like hes 12, War-
riors coach Steve
Kerr says. Even his
one superpower, the
immaculate hand-eye
coordination that
makes Currys shoot-
ing, passing and ball-
handling possible, is
essentially invisible.
That may be the
reason that even
now, after a year
that could end with
Curry winning back-
to-back MVP awards
and beating James
for back-to-back titles, there are
CLOCKWISE FROM TOP RIGHT: GETTY IMAGES (2); BRUCE SCHWARTZMAN/ASSOCIATED PRESS
many around basketball who
firmly believe James is the supe-
rior player. Curry had the better
season, they say, but James at his
best is better.
But theres another explanation
for why James is untouchable in
the minds of many basketball fans:
People say they like strivers, but
secretly they prefer naturals.
University College London social
psychologist Chia-Jung Tsay came
to study the perception of perfor-
mance after training as a classical
pianist at a conservatory, where
she was surrounded by musicians
who seemed to play down the
amount of time they actually prac-
ticed. They lied about their sched-
ules, covered the windows of their
soundproof practice rooms and
even fudged their ages to appear
younger. This struck her as odd.
Why were these musicians ex-
pending so much effort in this pe-
culiar way? They wanted to be mances: They preferred the natural. natural. NBA fans would rather promised Miami a hand and a halfs
known as naturals. And human be- But the subjects had been tricked. have James on their team, but worth of championship rings and
ings are hopelessly biased toward The two pianists were, in fact, only they would rather root for a team eventually returned to Cleveland as
naturals. one pianist. These highly trained with Curry. Watching the game, the NBAs prodigal star.
To some extent, every NBA musicians with finely tuned ears theyre more emotionally drawn Curry is so marketable not only
player is both a natural and a were betrayed by their brains. to the player who seems like he because hes the shiny new thing
striver. But the perception of This natural bias isnt limited had to work harder to get there, or because watching him play bas-
someone as one or the other is a to music. Tsay found signs of a even if they think the mega-tal- ketball can feel like a thrilling
powerful effect on its own. Tsay similar phenomenon in entrepre- ent might help their team win privilege. Its also because people
and Harvard psychologist Mahza- neurship, and there is other evi- more games. are attracted to potential. James
rin Banaji rounded up hundreds of dence it exists among children and In a recent Public Policy Polling has already reached his peak, but
expert musicians, had them read only gets stronger as they grow survey, Curry once again was the there is a sense that Curry still has
about a solo pianist and played up. Were likely to say that we publics favorite active NBA player, the potential to improve, and the
them a short audio clip of that art- value hard work, Tsay said. But with approval ratings that put him potential to be good at something
ist, at which point the subjects then this apparently hidden prefer- in the company of surprise Beyonc can be preferred over actually be-
were asked to rate the perfor- ence emerges when we test real albums and free beer. Curry also ing good at that very same thing,
mance. Then they repeated the behaviors. had the NBAs top-selling jersey according to a 2012 study.
process with a second pianist. The This NBA season could have midway through this season, and He may not be a natural like
recordings were almost exactly been a case study. The natural bias Morgan Stanley analysts have pro- James. But that may be why many
alike, except the first pianist was was obvious before the year be- jected Under Armours sales of fans see Curry as the future of
described as a natural, someone gan, when Curry placed fifth in Curry sneakers this year will beat basketball. The uncertainty is
with innate talent, and the second preseason MVP voting among Nikes for everyone not named Mi- what makes potential exciting,
pianist was described as a striver, league executives, even though he chael Jordan, including James. As said Zakary Tormala, a Stanford
someone with hard-earned had won the award last year. The recently as last seasons Finals, that business professor who co-wrote
achievement. honor went to James instead. would have been unthinkable. Since the paper. You can fantasize and
A funny thing happened when But basketball also proves a then, Curry has cultivated a main- imagine some glorious future that
the musicians offered their opinions corollary to the natural bias: The stream appeal that eluded James may be even better than what
of the nearly identical perfor- striver is more popular than the even before he dumped Cleveland, weve already seen.
THE WALL STREET JOURNAL. NY Friday, June 3, 2016 | D3

MORGENSTERN ON FILM

Searing
Witness
Makes
News

FROM TOP: THE WITNESSES FILM (2); OSCILLOSCOPE LABORATORIES

About Us
REVIEW
JOE MORGENSTERN
TO THE QUESTIONS RAISED and largely an-
swered by The Witness, another can be
added: What constitutes a big film? James
Solomons stunning documentary was pro-
duced on a tiny fraction of a Hollywood
spectaculars budget, and its audience will
be small, at least at first. Yet it topples
what weve come to accept as a pillar of
contemporary wisdom, and brings news
about human nature in the process. By any
sensible measure thats big indeed.
The pillar had been standing, despite
some erosion, since the 1964 murder of 28-
year-old Kitty Genovese on a nighttime
street in Kew Gardens, a pleasant residential
enclave in the New York City borough of
Queens. Two weeks after her death, the New
York Times reported in a front-page story
that 38 respectable, law-abiding citizens
watched Genoveses killer stalk and stab her
in three separate attacks over the course of
more than half an hour, and did nothing.
That account has become an enduring
emblemnot just of urban apathy in a by-
gone era, but of mans indifference to man.
The film makes the point briskly with recent
headlines comparing Trayvon Martin and
even Syria to Kitty Genovese. We see clips
from TV series that have evoked the case
over the decades: Perry Mason, All in the
Family, Law & Order. A 1994 clip shows
President Bill Clinton retelling her story as
settled truth: It sent a chilling message sug-
gesting that we were each of us not simply
endangered but fundamentally alone. In our
time, when the world seems to be coming
apartas it did then; she was murdered four
months after the assassination of President
John F. Kennedythe facts surrounding her
death still resonate with our darkest fears
about modern life. But they werent facts, as
The Witness reveals with the painstaking
care and inexorable drama of a police proce-
dural. Much of what we thought we knew
about this signal event is dead wrong.
The detective who investigated the case
obsessively isnt a cop, but Kittys youngest
brother, William; he was 16 years old when
she died. Hes not the only one who had
doubts about the veracity of the original
story. In 2004 the Times questioned some
of its own conclusions in a piece based on
the extensive research of a Kew Gardens
resident and amateur historian named Jo-
seph De May Jr. Mr. De May appears in the
film, but its Bill Genovese whos seen track-
ing down witnesses (their accounts are en-
thralling); interviewing A.M. Rosenthal, the
Times editor who broke the story (This
story has never died, Rosenthal says, de-
fending it zealously); speaking with other
reporters who had worked the story at the
time (Mike Wallace and Gabe Pressman ad-
mit to having accepted the Times version
uncritically because of the papers influence
and perceived authority); and practicing his
own form of shoe-leather journalism for 11
years, with Mr. Solomons camera present
at crucial moments.
Shoe leather didnt figure literally here,
since Mr. Genovese lost both legs in Viet-
nam. (He enlisted, he says, because he didnt
want to be like the apathetic bystanders
whod done nothingor so he believed at
the timeto help his sister in her mortal
pain.) The physical energy with which he
pursues his citywide explorations is only
one measure of his determination to un-
Kittys Genoveses
brother, Bill, visits the
site of her murder to
unravel the truth behind
the infamous crime.
Below, Kitty Genovese
in 1959 Brooklyn. in 1
cover the truthand to rediscover Kitty as
the vibrant young woman she had been,
rather than the grim symbol she came to be
for her family and the world.
As the films guide, resident interviewer
and pre-eminent witness, Mr. Genovese is
as eloquent as he is companionableso
much so that its hard to understand why
The Witness tells us nothing about his
working life. (The press notes say only that
he was retired when he began his investiga-
tions.) Other concerns about Mr. Solomons
film are worth noting. On-screen dates
would have been helpful for significant in-
terviews, but none are provided. The admi-
rably smooth narrative flow is too smooth
in one respect; no one acknowledges the
presence of the camera, even though one in-
terview subject looks as if hed been sand-
bagged by it. Certain scenes, including one
crucial phone call, appear to be re-cre-
ations, but they arent identified as such. A
climactic sequence, on the other hand, is
clearly a re-creation, with an actress
screaming screams that are shattering,
more than half a century after the fact.
The Witness is remarkable for its emo-
tional impact, and its clarity. The picture
that emerges isnt perfectly clear; the whole
truth will never be known, Bill Genovese
says. What he has made known, though, is
valuable. Shoddy journalism and sloppy po-
lice work made a dreadful event seem worse
than it was. Kitty did not die alone; she died
in the arms of a friend who rushed to her
aid. A film has breathed new life into the
spirit of its long-dead subject.
 Email Joe at joe.morgenstern@wsj.com and
follow him on Twitter: @JoeMorgenstern.

The Fits esting, but didnt take it as seriously as

We hear her counting reps under
her breath before we see her doing
them, 25 sit-ups in all, hands clasped
behind head, radiant face to the cam-
era, an 11-year-old named Toniplayed
by a dazzling youngster named Royalty
Hightowergoing up and down and up
and down with ferocious determina-
tion. Thats the opening shot of The
Fits, and it goes on and on for almost
a minute, announcing a movie that
could be really boring or something
special. In fact, this feature by Anna
Rose Holmer is so special that words
cant do it justice, and for good reason.
Movement is its subject. Eager kids
with fantastic moves and the urge to
dance make up its cast. All ups with no
downs, its a motion picture in the tru-
est sense of the term. Ive never seen
anything quite like it and I loved every
one of its 72 minutes.
Most of the action takes place at a
Cincinnati community center, where
Toni is learning to box. She takes her
lessons seriously, i.e. joyously, but shes
enchanted by what she sees going on
in an adjacent room of the gymolder
girls, members of a dance team called
the Lionesses (played by real-life mem-
bers of a dance team called the Q-
Royalty
Hightower
Kidz), practicing routines that are all
ablaze with athleticism, sexuality, ritu-
alized aggressiveness and shared
dreams of exotic beauty. The plot, such
as it is, grows out of Tonis desire to
belong, then to excel, and then to de-
fine, with her fast-twitch mind and her
faster-twitch muscles, who she is in
the fervent moment.
Theres also a subplot that gives the
film its title. Some of the girls are be-
set by mysterious tics and swoons
they call them fitsthat resemble epi-
leptic seizures, but are probably
manifestations of group hysteria, a
contagious, even competitive need to
solidify ones membership in the group.
I found that aspect of the story inter-
it may have been intended. To tell the
truth, Im glad I saw the film before I
read about the filmmakers intentions.
Thats not meant as a knock; Ms. Hol-
mer is a committed artist with a formi-
dable command of aesthetic principles
and cinema technique. (And a gifted
cinematographer in Paul Yee.) Its just
that, wonder of wonders, she has kept
all that stuff to herself. Whats on the
screen is so pure and simple that it
looks like life caught on the fly.
And life with the gift of flight. Must
we choose to be slaves to gravity? go
the lyrics to the Kiah Victoria song on
the soundtrack. (Danny Bensi and Saun-
der Jurriaans did the fine original score.)
Girls leap, whirl or twirl in almost every
scene. Toni gets to levitate in a slo-mo
sequence of magic realism, but even at
rest she seems poised for motion. At
one point, hesitating almost impercepti-
bly during a saunter through a locker
room, she reminded me of Cyd Charisse
in The Band Wagon, pausing before her
first ballet move in the Dancing in the
Dark number with Fred Astaire in Cen-
tral Park. Toni doesnt have an Astaire,
and its time to note that shes black, like
all the other girls in the film. (Ms. Hol-
mer is white.) But color doesnt matter
here. The Fits transcends race and eth-
nicity, just as it transcends gravity.

323 SIXTH AVENUE AT SHOWTIMES, TICKETS

WEST THIRD STREET
Rewinds
& MORE INFO AT
212-924-7771 IFCCENTER.COM
OPENINGFRI

DVD // STREAMING // DOWNLOAD

THE WITNESS
10:30am, 12:15pm, 2:50pm*, 4:55pm, 7:05pm*, 9:35pm
*FILMMAKERS IN PERSON FRI & SAT AT 7:05PM, SUN AT 2:50PM!

The Central Park Five Cutie and the Boxer (2013) George Washington (2000) THE WAILING 3:25pm, 9:00pm

10:45am, 12:40pm, 2:00pm, 2:45pm, 3:55pm, 5:00pm,

(2012) Set mostly in Lower Manhattan, Zach- David Gordon Greens lyrical debut feature, WEINER 6:05pm, 6:40pm*, 7:20pm, 8:15pm, 9:15pm, 10:20pm
*NO 6:40PM MON JUN 6, TUE JUN 7

ary Heinzerlings fine debut documen- shot in rural North Carolina, sets up a lei- 1:00pm*
Documentaries about New York are in tary was hardly noticed by a national surely counterpoint between serene, al- PRESENTING PRINCESS SHAW *NO SCREENING SUN JUN 5

abundant supply. This one is a harrowing audience. On the surface its about noth- most formal landscapes and quirky con-
piece of investigative CHEVALIER 1:05pm

ing moreor less versational vignettes

work by Sarah Burns;
her father, Ken Burns;
than a troubled mar- improvised by a non- PEL: BIRTH OF A LEGEND 10:40am

riage that has professional cast.

and David McMahon. somehow managed Theyre mostly teens THE MAN WHO KNEW INFINITY 10:55am*, 5:20pm, 7:40pm* *NO 10:55AM SAT JUN 4,
SUN JUN 5, TUE JUN 7; NO 7:40PM MON JUN 6

Their film examines to last 40 years. Be- and preteens, poor PALME DOR FOR BEST FILM,
the notorious case of neath the surface, blacks and poor CANNES FILM FEST DHEEPAN 2:55pm, 10:00pm

five teenage boys though, and then whites mixed to- APRIL AND THE EXTRAORDINARY WORLD 12:45 *
*NO SCREENING SAT JUN 4
pm

from Harlem who startlingly out in the gether, yearning for WEEKEND HITCHCOCKS SHADOW OF A DOUBT FRI-SUN: 11:00 am
were sent to prison open, is a history of friendship, sex or CLASSICS
for the 1989 assault NATIONAL
rivalry (both hus- love, and a shot at THEATRE LIVE CORIOLANUS SUN: 11:00 , mON: 7:00 am pm

and rape of a white middle-class woman
in Central Park, a crime to which a known
serial rapist confessed many years later.
band and wife are artists), enmity, re- heroic purpose. One sad-eyed boy wears a WAVERLY THE SHINING 11:30pm JAWS 11:40 EL TOPO 12:00 pm am
luctant devotion and, most startling of football helmet much of the time because MIDNIGHTS
FRI-SAT PRINCE IN PURPLE RAIN 12:20 SILVER BULLET 12:25
am am
all, enduring love. the fontanel in his skull never closed.
D4 | Friday, June 3, 2016 THE WALL STREET JOURNAL.

ARTS & ENTERTAINMENT

Going Down the Rabbit Hole

BY MARC MYERS

WHEN GRACE SLICK wrote White Rabbit in

late 1965, she never imagined the song would
pave the way for psychedelic rock and inspire
several generations of lead female rock sing-
ers, including Pink, who covers it in the new
film Alice Through the Looking Glass.
Released originally by Jefferson Airplane
in February 1967 on its Surrealistic Pillow
album and then as a single that June,
White Rabbit peaked at No. 8 on Bill-
boards pop chart. The brooding bolero has
been interpreted by dozens of rock and jazz
artists and was inducted into the Grammy
Hall of Fame in 1998.
Earlier this year, Ms. Slick, 76, spoke
about the song she composed on a red piano
and her trippy lyrics
based on Alices Ad-
ventures in Wonder-
land.
Edited from an in-
terview:

GRACE SLICK: In the

summer of 1965, I was
living with my hus-
ANATOMY band, Jerry Slick, in
OF A SONG Larkspur, Calif., about
a half-hour north of
WHITE San Francisco. I was 25
and working as a cou-
RABBIT ture model at I. Mag-
nin in San Francisco
while Jerry was mak-
ing short films. We didnt have much money.
At I. Magnin, I had to change into expen-
sive clothes every 10 minutes and walk
around as rich old ladies felt the fabric and
asked what the dress cost. If a woman
bought the dress, the store would make one
up for her nine sizes larger than I was.
San Francisco was saturated with music

GEORGE BRICH/ASSOCIATED PRESS

then. Haight-Ashbury was a draw for kids,
and bands were there from all over the coun-
try. In September 65, Jerry and I went to the
Matrix to hear a new bandJefferson Air-
plane. Signe Anderson was the Airplanes lead
singer, and as I watched, I decided that sing-
ing might be way more fun than modeling.
So we started a band. Jerry had a set of
drums and his brother Darby knew how to
play guitar. Our friend David Miner could
sing and play guitar, Bard DuPont played
bass and Peter van Gelder played sax and
flute. We named the band the Great Soci-
etysort of a snarky take on Lyndon John-
sons social program.
That fall, I found a small upright piano
for $80 at a warehouse in San Francisco. It
was painted about 90 coats of bright red
and was missing around 10 keys in the up-
per register. I didnt play way up there any-
waythe notes were too pingyso I
bought it. Jerry and I put the piano in our
living room.
Our first gig was at North Beachs Coffee
Gallery in October 65. I quit my modeling
job and started writing music for the band. I
didnt really play pianoId write lyrics and
bang around until I came up with chord pro-
gressions.
The more the band gigged, the more me-
dia coverage we got. In an interview with
the San Francisco Chronicle, I argued in fa-
vor of marijuana and LSD, and somehow the
article got back to my parents. It was pain-
ful for them, Im sure, but I didnt care
whether they minded. Parents were criticiz-
ing a generations choices while sitting there
with their glasses of scotch.
They also seemed unaware that many
books they read to us as kids had drug use as
a subtext. Peter Pan uses fairy dust and can
fly, Dorothy and her friends in The Wonder-
ful Wizard of Oz cut through a poppy field
and wind up stoned and fast asleep.
I loved Alices Adventures in Wonder-
land. The stuff Alice drank and ate made
her high [tall] or brought her down [small].
There were all kinds of drug metaphors in
there. The 60s were very much like that.
One afternoon in December or January,
while Jerry was out, I started writing a song
about Alice and all the drug references in
the story. I wrote the lyrics first. As I wrote,
Id read them out loud to be sure my voice
could form a cadence [Ms. Slick sings slowly
to illustrate: One pill makes you larger /
And one pill makes you small / And the ones
Grace Slick, seen
in 1970, says
White Rabbit
was influenced in
part by a Miles
Davis album.
that mother gives you / Dont do anything
at all].
When the lyrics were done, I took the
sheet of paper to the red piano and worked
on the chords, writing the names of the
ones I liked over the phrases. I wrote the
song in F-sharp minor, a key thats ideal for
my voice. Minor chords have a certain dark-
ness and sadness.
The music I came up with was based on
a slow Spanish march or bolero that builds
in intensity. Ive always had a thing for
Spanish folk music. Back in 1963, Jerry and I
were living with Darby and his girlfriend in
San Francisco on Potrero Hill. One day we
took acid and I put on Miles Daviss
Sketches of Spain.
I loved that album and I listened to it
over and over for hours, particularly Conci-
erto de Aranjuez, which takes up most of
the first side. Its hypnotic. Ive always been
like this. Anything I love Im going to cram
into my ears, nose and mouth until I use it
up. Sketches of Spain was drilled into my
head and came squirting out in various
ways as I wrote White Rabbit.
With the chorusthe Alice lines, like Go
ask Alice, when shes 10 feet tallI shifted
to major chords for a release and to cele-
brate Alices courage following the white
rabbit down the hole. Once down there she
didnt have a Prince Charming. She had to
save her own ass while going through all the
insane hallucinogenic stuff.
I identified with Alice. I was a product of
50s America in Palo Alto, Calif., where
women were housewives with short hair and
everything was highly regulated. I went
from the planned, bland 50s to the world of
being in a rock band without looking back.
It was my Alice moment, heading down the
hole. White Rabbit seemed like an appro-
priate title.
When I finished the song, I made copies
by hand of the lyrics and chord names for
the band. I sat at the piano and sang and
played the song for the guys. Then they
followed on acoustic in-
struments, to keep the
noise down.
We first performed
White Rabbit in early 66
at a dive bar on Broadway in
San Francisco. Each night wed
play four 30-minute sets for a hand-
ful of drunk sailors at the bar, or our
friends would drop by to listen.
We didnt cover other bands stuff. That
was a fast way to wind up playing at the
Holiday Inn forever. The challenge was to
write what you felt. At the dive bar, if the
drunken sailors werent aware we were
playing, our original songs were probably in
pretty good shape.
Within a few months we went from dive
bars to opening for the Grateful Dead,
Quicksilver Messenger Service, Janis [Jop-
lin] and other artists at local auditoriums
and theaters. We performed White Rabbit
at places like the Fillmore, Longshoremens
Hall and the Matrix.
At one point, we made a series of demos
at Golden State Recorders for Autumn Re-
cords. [Label co-owner] Tom Donahue had
Sly Stone come in to help us. We were so
bad that Sly eventually played all the instru-
ments so the demo would sound OK.
By the summer of 66, some of the guys
were talking about leaving the Great Society
to study the sitar in India. I figured the
bands days were numbered. In October,
Jack Casady, the Airplanes bassist, came up
to me at the Carousel Ballroom, where we
had opened for the band. Jack said Signe
was leaving to raise her baby daughter and
asked if I wanted to replace her.
Initially I was shocked but it took me
about two seconds to say yes. Down the rab-
bit hole, again. Jack, Marty Balin, Paul Kant-
ner, Jorma Kaukonen and Spencer Dryden
were way ahead of the Great Society in
terms of musicianship. Jerry was in film
school by then, so he didnt mind.
When I joined the Airplane in October
66, I brought over
Somebody to Love,
which Darby had written,
and White Rabbit. Audi-
ences liked the songs when
the Great Society had per-
formed them. They were a good
fit for Airplane.
On White Rabbit, the Airplane was
better at designing an instrumental idea.
There was never a specific guitar solo for
White Rabbit. In concert, there might be a
jam in the beginning but my vocal always
ran about 2 minutes.
People in the audience thought I moved
around on stage like a panther. Im actually
a klutz. The reason I moved so carefully was
to avoid tripping and breaking my neck.
In November 66, we recorded Surrealis-
tic Pillow at RCA in Los Angeles. After we
recorded White Rabbit, we all went into
the control room to hear the playback on
the monitor speakers. I was blown away. I
wasnt aware I sounded like that, with all
that power. I was impressed.
I always felt like a good-looking school-
teacher singing White Rabbit. I sang the
words slowly and precisely, so the people
who needed to hear them wouldnt miss the
point. But they did.
To this day, I dont think most people real-
ize the song was aimed at parents who drank
and told their kids not to do drugs. I felt they
were full of crap, but to write a good song,
you need a few more words than that.
After the White Rabbit single came
out, RCA told us each week where the re-
cord stood on the charts. I didnt pay much
attention. I didnt set out to write a hit sin-
gle, and I felt that radio only liked White
Rabbit because it was short and they could
get more ads in.
Looking back, I think White Rabbit is a
very good song. Im not a genius, but I dont
suck. My only complaint is that the lyrics
could have been stronger. If I had done it
right, more people would have been annoyed.

GENIUS kins, already famous as the editor of rectors and actors. Mr. Firth read it
Ernest Hemingway and F. Scott about five years ago and stayed with

He Needed a Fitzgerald, helped Wolfe wrestle thou-

sands of pages of grandiloquent prose
into autobiographical novels of
the project. Briefly, Joaquin Phoenix
and Michael Fassbender were possible
Wolfes. But the film only got traction
Good Editor 500-800 pages, including Look Home-
ward, Angel. Perkins became an ador-
with Mr. Grandage, the British stage di-
rector, who had forged a collaboration
ing father figure to Wolfe, who loved with Mr. Logan while directing his
his editor, yet came to resent him. plays Red and Peter and Alice.
BY CARYN JAMES
Mr. Logan (whose works include the With Mr. Firth, Mr. Law and Ms.
series Penny Dreadful, the movie Kidman attached, they found inves-
Embarrassingly, Jude Law says, I Skyfall and the Tony-winning play torsfor a low-budget $17 millionand
ROADSIDE ATTRACTIONS

hadnt read any of Thomas Wolfes
novels before being asked to play him
in Genius, which opens June 10.
No need for embarrassment: Mi-
chael Grandage, the director, hadnt
read the books, either, before getting
the screenplay about the fraught rela-
tionship between Wolfe, the American
author of the 1920s and 30s, and the
legendary book editor Maxwell Perkins.
Colin Firth, who plays Perkins, says
Wolfe had been on a list of writers to
read before I die, but perhaps not to-
day. Even John Logan, the American
screenwriter who instigated the proj-
ect, hadnt read Wolfe before deciding
to buy the rights to A. Scott Bergs bi-
ography, Max Perkins: Editor of Ge-
ON THE SET Producer James Bierman, Jude Law, A. Scott Berg and Colin Firth.
nius. Mr. Logan spent a summer
catching up on Wolfes elephantine,
sometimes overwrought novels. It took
him 15 years to get Genius made.
Mr. Logan never doubted that there
was a dynamic story in the Perkins-
Wolfe friendship. What I troubled my-
self about was: How do you make edit-
ing a book cinematic? he says. And in
an age of action blockbusters, how do
you get to make a quiet film about
two nearly forgotten literary figures?
The author and the editor shared a
passion for words but had dramatically
different personalities. Wolfe was a
loud, attention-grabbing Southerner,
while Perkins was the embodiment of
Yankee restraint. (He reputedly never
removed his fedora until bedtime, Mr.
Berg wrote.) The film depicts how Per-
Red) had his own Wolfe-like journey
while writing the script.
The first few drafts were awful,
bloated and monstrously long, he says.
Hemingway and Fitzgerald were major
characters. Their roles shrank.
Hemingway (Dominic West) goes
fishing in Key West with Perkins;
Fitzgerald (Guy Pearce) appears in
Hollywood and back East. Nicole Kid-
man plays Wolfes demanding lover.
Now the film spans nine years, from
1929, when Wolfe walks into Perkins
office, through Wolfes death, probably
from a form of tuberculosis which af-
fected the brain. He was 37.
With his pared-down script, Mr. Lo-
gan began testing the waters with di-
shot largely in Manchester, England,
whose wide roads could double as New
York City avenues.
For a story full of characters sitting
at desks, the filmmakers invented cine-
matic scenes. We used every trick,
Mr. Logan says. A five-minute set
piece, in which Perkins and Wolfe make
cuts in a passage of Of Time and The
River, begins in Perkins office, where
in reality it might also have ended. On
screen, the men keep talking as they
walk along a rainy cobblestone street,
visit a smoky bar, walk down a stair-
case at Grand Central and then onto a
platform, where Wolfe calls out a few
sentences as Perkins train to the sub-
urbs pulls out of the terminal.
 THE WALL STREET JOURNAL. Friday, June 3, 2016 | D5

ARTS & ENTERTAINMENT

ful to young people, he
says. I suppose youd
call him an icon in the
modern world and not
just a gay icon, Mr.
Holland says.
Two years before
Wildes death, Mr. Hol-
land says, his grandfa-
ther was so notorious
that his poem, The
Ballad of Reading
Gaol, about the hor-
rors of incarceration,
was published not un-
der his name but his
prison identification
number: C.3.3. Ac-
cording to Richard Ell-
manns biography, the
poem, released in
A WILDE MOMENT The Judas Kiss, above, with Charlie Rose, Cal 1898, was an overnight
Macaninch and Rupert Everett. The New York Philharmonics version of success and went
The Importance of Being Earnest, below. At left, the poet in 1882. through six printings
before the authors
name appeared in
brackets alongside the
CLOCKWISE FROM LEFT: EVERETT COLLECTION; RICHARD TERMINE; CHRIS LEE

prison number.
Wildes fame as a
writer, lecturer and
proponent of the aes-
thetic movement owes
much to his parents
and their era, says
Emer OSullivan. Her
biography, The Fall of
the House of Wilde,
comes out in the U.K.
this month and the U.S.
in the fall. Unlike ear-
lier biographers, who
dwelt on Wildes years
at Oxford, Dr. OSulli-
prisonment for homosexuality. van believes his genius was shaped long be-
A revival of the play at the Brooklyn fore then, at home on Dublins elegant Mer-
Academy of Music, with Mr. Everett as rion Square. His father, Sir William Wilde,

An Oscar Wilde
Wilde, has been more warmly received than
its first staging in the late 1990s. The pro-
duction, which began in mid-May, will run
through June 12.
In The Judas Kiss, Mr. Hare wanted to
portray Wilde as a human being who hap-
was a brilliant surgeon, scientist, archaeolo-
gist and author. His mother, Lady Jane Wilde,
a political journalist and poet, presided, in id-
iosyncratic garb, over a salon. However, the
familys reputation and fortunes were tar-
nished by rumors of Sir Williams involve-

Revival
BY BRENDA CRONIN
OSCAR WILDE, the Victorian-era playwright
and poet who went from renown to ruin and
back again, said the only thing worse than
being talked about is not being talked about.
Theres no risk of the latter these days as
the writer, born in Ireland in 1854, is spring-
ing to life on stage, screen and in print. This
week, Gerald Barrys opera based on Wildes
play, The Importance of Being Earnest, is
making its U.S. stage premiere in New York.
A new biography traces Wildes life from his
dazzling start in Dublin. An exhibit on Wilde
in Paris, where the 46-year-old author died,
destitute, will open in September. And this
month, shooting begins on a movie about
Wilde written by, directed by and starring
Rupert Everett.
The recent attention suggests that Wilde is
resonating with audiences and readers in an
era of easing stereotypes and gender fluidity.
pened to be bisexual or predominantly ho-
mosexual but in a marriage with children,
he says. I think what has eased up in the
past 15 years is the understanding that sex-
uality isnt as rigidly defined as it was.
Merlin Holland, Wildes grandson, sees
todays swell of interest as part of a wave
In the past few that has been building for decades. The au-
decades, biogra- thor of The Portrait of Dorian Gray, De
phies and collec- Profundis, Lady Windermeres Fan and
tions of Wildes other works sort of wormed his way back
letters have trans- into public esteem, Mr. Holland says. But
formed the cari- it wasnt until well into the 1970s that peo-
cature of a dandy ple began to think of him as anything other
with a green car- than a funny man struggling to get out of
nation into a por- the third division of serious literature.
trait of a classics Mr. Holland is the son of Vyvyan Holland,
scholar, philoso- one of two children born to Oscar Wilde and
pher and author. his wife, Constance. After Wildes downfall,
I think its Constance fled England for Switzerland and
taken a very long changed her sons surname to one of her
time for people familys ancestral names, to shield them
to understand from the scandal.
that he was an Irish radical, that he was a Mr. Holland is helping assemble manu-
socialist, that he was a brilliant critic of so- scripts, books, photographs, caricatures and
ciety and he also happened to be homosex- paintings for an exhibit on Wilde that opens
ual, but that he was a whole lot of things, Sept. 28 at the Petit Palais in Paris. His
not just one thing, says Sir David Hare, grandfathers touchstonescelebrating indi-
whose 1998 play, The Judas Kiss, reimag- viduality, sticking to principles and rebelling
ines the eve and aftermath of Wildes im- against authorityare particularly meaning-
ment with a female patient, starting a glitter-
to-gutter cycle that their son would repeat.
Wildes wariness of dogmas also is strik-
ing a contemporary chord. People with con-
victions were his biggest dread, Dr. Sullivan
says. In his writing hes always introducing
something else, opening up questions, and I
think thats very much what we have been
doing in the last 20 years.
Mr. Everett says Wilde was both the
prototypical celebrity and a landmark fig-
ure in gay rights. Gay marriage and all the
things happening now are all very much the
product or part of the road that was started
with Oscar Wildes death, Mr. Everett says.
Wilde helped unleash one of the great
20th-century debates, which was sexuality,
women, men and what we are.
After The Judas Kiss ends its run, Mr.
Everett will turn to The Happy Prince, his
movie about Wilde. Shooting starts next
month in Bavaria and moves on to Belgium,
France and Italy over the summer. Mr. Ever-
ett says of the film, which borrows its title
from one of Wildes fairy tales, either its
the beginning of my life or the end of it.
Wilde himself likely would have been un-
fazed by the attention. There are only two
tragedies in life, he said.One is not getting
what one wants and the other is getting it.

PEAKY BLINDERS: SEASON THREE

The Flat-Cap
Gang is Back
BY TOBIAS GREY
THE BRITISH TELEVISION SERIES
Peaky Blinders has given its cre-
ator Steven Knight some unex-
pected street cred in the U.S.
On a visit to London, the rapper
Snoop Dogg asked his agent to ar-
range a meeting for him with Mr.
Knight to express his appreciation
for the series, which is set in Bir-
mingham in the years following
World War I.
We spoke for about three hours
about how Peaky Blinders re-
minded Snoop of his own move
into a gang way of life, says Mr.
Knight. Snoop Dogg was unavail-
able to comment, but he has used
name and the name of the horse they
were betting on and drop it into the
basket as she walked by, he says.
The May 31 start date comes just
in time to qualify for 2016 Emmy
nominations. The shows producer
Caryn Mandabach, a veteran of Ameri-
can TV hits such as The Cosby Show
and That 70s Show, thinks Peaky
Blinders deserves to be part of award
consideration, just as The Sopranos
and Boardwalk Empire were. The
standouts include Mr. Knight, who has
written 16 of the 18 episodes so far;
Irish actor Cillian Murphy, who stars as
Tommy Shelby, the keen-witted but
tortured mastermind of the Shelby
familys gambling operations; and Eng-
lish actress Helen McCrory, who plays
Aunt Polly, the familys tough matri-
NETFLIX

Instagram to tout the show. arch. In seasons 2 and 3, English

Gang cultures exist throughout
the world, but for movie and televi-
sion audiences, they dont always
cross borders easily. Netflix doesnt
provide ratings, but Peaky Blinders,
which starts its third season on the
streaming service on May 31, is an-
ecdotally gaining such traction in
the U.S. to go along with its hit sta-
tus in Britain. BBC Two announced
Wednesday it had ordered two
more seasons of the show. It also
airs in about 160 other countries.
The series comes from real-life
stories that Mr. Knights parents
told him about gangs of illegal Bir-
mingham bookmakers who fought a
fierce turf war during the 1920s
and beyond. Mr. Knights mother
was a bookies runner when she
was 8 years old. She would walk
the streets of Birmingham carrying
a basket of laundry.
People would wrap a sixpence
in a piece of paper with their code
movie star Tom Hardy also has a re-
curring role as Alfie Solomons, the
buffoonish rival head of a London-
based Jewish criminal organization.
The extended Shelby family, nick-
named the Peaky Blinders for the eye-
slashing razorblades sewn into their
flat caps, are more than just loosely
based on Mr. Knights family back-
ground. My dads uncles were called
the Sheldons and known as the Peaky
Blinders, says Mr. Knight. Everyone in
Small Heath [an area in southeast Bir-
mingham] was scared of them. They
were always immaculately dressed,
boots polished, with their caps sort of
slanted over their eyes.
The third season of the series has
Tommy getting married for the first
time. After struggling to build his em-
pire, he now has a safe-room full of
money and a country estate with a
portrait of himself and his horse above
the mantel. Like mobsters almost ev-
erywhere, vulgarity is not an issue.
BRITISH BRAWLERS The blokes from Birmingham, including Cillian Murphy as Thomas Shelby, return to Netflix.
This is f---ing Birminghamgood
taste is for people who cant afford
sapphires, he tells his wife. Tommys
connubial bliss doesnt last for long,
though, before he is pitted against the
might of the Economic League, a shad-
owy alliance of politicians, churchmen
and the military fearful that a Bolshe-
vik-style revolution is brewing.
Peaky Blinders has been a passion
project for Mr. Knight since the 1980s,
when he wrote and then discarded four
chapters of a novel with similar
themes. The 56-year-old screenwriter,
whose film credits include Dirty Pretty
Things (2003), Eastern Promises Leonard Cohen wrote a song especially
(2007) and Locke (2013), which he
also directed, pitched the idea as a
television series to Mrs. Mandabach
when he saw its potential as a con-
tinuing crime-family saga.
Another influence was American
westerns, which Mr. Knight says he ap-
preciates for not being afraid to mythol-
ogize what were essentially 19th-cen-
tury agricultural laborers. I felt we
could do something similar with this
melting pot of industrial, seething mass
that was Birmingham in the 1920s,
says Mr. Knight. The first episode of the
first season has the hero riding through
the mill-town streets on a horse.
The series uses contemporary music
by artists such as Nick Cave and the
Bad Seeds (whose ominous Red Right
Hand provides the theme), Tom Waits,
the White Stripes and Radiohead.
Ridley Scott, theyve been shooting
for the series that will appear in sea-
son 3. And before he died, David
Bowie, a fan, gave his blessing for mu-
sic from his final album Black Star to
be used this season.
The show has also spawned a cot-
tage industry in the U.K. The Tick
Tack Club, an immersive pop-up
night club named after the riotous
London dance hall that appears in
season 2, has opened up under a
railway arch in London Bridge. (It
closes June 4.) Mr. Knight is excited
about a clothing line of herringbone
suits named after the Garrison pub,
an early fixture in the show.
Messrs. Knight and Hardy also
are working on a new period collab-
oration, which has attracted a full
U.S. partner: With the actors father
Chips Hardy, a writer, and producer
a new miniseries, Taboo, for the
BBC and FX, due as early as this
year. Mr. Hardy plays a man who
returns to London from Africa in
1813 and battles a sinister East In-
dia Company.
D6 | Friday, June 3, 2016 THE WALL STREET JOURNAL.

ARTS & ENTERTAINMENT

Crushing Vinyl, Not Pressing It

BY JOHN JURGENSEN

LAST WEEK at the Manhattan headquarters

of Matador Records, employees chucked
thousands of brand-new copies of an ac-
claimed album into a garbage truck, which
crushed the CDs and vinyl records and
carted them away.
It was a rudely physical coda to a dispute
over intangibles: a songs lyrics and melody.
Matador artist Will Toledo, an indie rocker
who records under the name Car Seat Head-
rest, had woven elements of a 1978 hit by the
Cars, Just What I Needed, into one of his
songs. Mr. Toledo and Matador believed they
had secured the necessary approval to release
the Car Seat Headrest album featuring the
hybrid song. But a publishing company repre-
senting Cars songwriter Ric Ocasek denied
them permission after learning that some of Matador Records employee Pete Legrand
Mr. Ocaseks lyrics had been changed. discarded a box of recalled Car Seat Headrest
By that time, about 10 days before the records, above, last month. The groups
May 20 release of the Car Seat Headrest al- songwriter, Will Toledo, below right, used part
bum, Teens of Denial, all physical copies of a song by the Cars Ric Ocasek, below left,
about 5,800 vinyl LPs and 3,700 CDshad al- and changed the lyrics, prompting the recall.
ready been shipped to distributors and record
stores. Matador issued a recall, the first in dently through the music site Bandcamp. I
the labels 27-year history, and scrambled to grew up releasing music digitally, and I
salvage the project. Mr. Toledo created a ver- never put out physical records before sign-
sion of the song without material from Just ing to Matador, so this album release in all
What I Needed. Matador swapped it in to practicality looks about the same as what
get a digital version of the album out on Im used to, Mr. Toledo said.
time. In between documenting and destroying Still, the recall leaves him empty-handed
CLOCKWISE FROM TOP LEFT: COLE WILSON FOR THE WALL STREET JOURNAL (2); SCOTT DUDELSON/GETTY IMAGES; RICHARD SHOTWELL/INVISION/AP

the recalled recordings, the label fast-tracked on tour, where he could be selling the new
the vinyl pressing of the replacement album, LPs or CDs to fans at concerts.
a process that typically takes several months. The vinyl stock of Teens of Denial is
Mr. Toledo, who is 23 years old, is Car expected to be replaced in early July by In-
Seat Headrests singer, guitar player and dependent Record Pressing, a plant near
sole songwriter. The four-person group has Trenton, N.J., that opened last year. Making
built buzz since Mr. Toledo started putting IRPs job more painstaking: the fact that
out music while in college in Virginia. His Teens of Denial is a double LP. The press-
album snag reflects broader forces in the ing company will save and quarantine the
music industry, such as the revival of vinyl records (featuring sides C and D) that didnt
records and the antiquated factories that include the offending song. After IRP
make them. Vinyl sales, which have risen for presses the replacement records (featuring
10 years, amount to just 6% of total music sides A and B), employees will insert them
retail, according to the Recording Industry into the new sleeves (with revised credits)
Association of America. However, at $416 and seal them for shipping.
million in 2015, vinyl sales were higher than IRP, built around six refurbished presses
revenue from ad-supported music streams from the 70s and 80s, produces about
on services like YouTube, indicating the lin- 4,000 records a day and is about to double
gering importance of physical releases in a its output by adding a second shift of work-
world dominated by digital. ers, says general manager Sean Rutkowski.
Mr. Toledos run-in with the rocker be- I think were turning a corner, produc-
hind some of the catchiest hits of the 70s tion-wise. For years, people were nervous to
and 80s also underscores the power of mu- invest in it because they expected the vinyl
sic publishing, which encompasses the fad to die down, says Cameron Schaefer,
rights to songs as written compositions. Its head of music and label relations at Vinyl
a hugely important piece of intellectual Me, Please, a subscription service that deliv-
property for songwriters trying to supple- ers an exclusive LP to members each month.
ment sales and streaming revenue with fees Launched in 2013, the Boulder, Colo., startup
from, for example, placing their music in TV had worked with Matador to create a special
commercials or movies. edition of the Car Seat Headrest album750
For veteran acts such as Mr. Ocasek, with copies on yellow vinyl.
a thick catalog of familiar songs, publishing For collectors, however, the more coveted
rights not only can supply lifelong profits, edition of Teens of Denial is the recalled
they also can be used to promote music to original. After hearing about the recall, Steve
new generations of fansor shield it from Gray, a photographer in Bangor, Maine, went
unwelcome uses. online on the albums release date and
In the original version of Mr. Toledos searched the inventory of a regional chain of
song (previously titled Just What I Needed/ brick-and-mortar record stores called Bull
Not Just What I Needed) he played a syn- Moose. He hit the Bangor location just after
copated guitar riff borrowed from the Cars song was blocked because it is our policy German pressing plant, at about $2 per unit. the doors opened at 9 a.m. and found a sin-
hit. Then, after some verses of his own, he that no lyric changes are ever approved. When we do the final P&L on this project, gle copy of the LP, for $26 plus tax.
quoted the Cars tune but changed Mr. Oca- Mr. Ocasek declined to comment. its not going to look great, said Rusty Later, he poked through the shrink wrap
seks line from Its not the ribbons in your After his request to use Mr. Ocaseks Clarke, vice president of sales for Beggars just enough to verify that both LPs were in-
hair to Its not the way you cut your hair. work was denied, Mr. Toledo said, he re-re- Group, which comprises six record labels, side. He posted a picture of his score in a
Mr. Ocasek controls his songs through a corded the introduction to his song. He re- including Matador. forum on the Vinyl Me, Please site, where a
company called Lido Music, which relies on placed the Cars lyrics with a snippet of one Before a recent performance in Brooklyn, handful of other members claimed to have
Universal Music Publishing Group to admin- of Car Seat Headrests songs from a previ- Mr. Toledo said he regretted Matadors fi- received copies of the recalled record
ister access to the catalog. Universal said ous album, played backward. The new title: nancial hit but didnt mourn the destroyed shipped by Amazon.com.
the original Car Seat Headrest request that Not What I Needed. records. Before signing with Matador, he To protect his find, Mr. Gray doesnt plan
was approved didnt disclose that the lyric Matador Records expects to lose at least self-recorded 11 releasesinitially using his to play it on the turntable he got for his
had been changed. After learning of the lyric $50,000 on the effort, including what the la- car as a recording studio, hence his moni- birthday a couple of years ago. Instead, hes
change, Lido Music said in a statement, the bel had paid to ship the original LPs from a kerand released his recordings indepen- been streaming Teens of Denial on Spotify.

PRINCE TRIBUTES complex, L.A. Live. At one night-

Continued from page D1
partner for Michael Jackson and a
backup singer for Stevie Wonder,
said in a video tied to the albums
release that Prince contacted her
after she said in a TV interview
that he was her dream collabora-
tor.
Several people who were close
to the performer said they were
asked by some of Princes relatives
not to speak publicly until the U.S.
memorial concert has taken place.
The late pop stars sister and half-
siblings could not be reached to
comment. According to a medical
examiners report released Thurs-
day, an autopsy found that the pop
stars death on April 21, at the age
of 57, was due to an overdose of
the opioid fentanyl.
Tickets for the AEG-produced
shows, scheduled for June 24 and
25, went on sale last week. The
shows will benefit Autism Rocks, a
charity for whom Prince performed
fundraisers in recent years. AEG is
providing production services for a
flat fee to Dubai promoter 117 Live,
a division of Al Ahli Holding
Group, which helped organize the
earlier autism benefits.
The charitys founder, Sanjay
Shah, wont attend the concerts,
club concert, Prince complained to
the audience about the poor sound
and closed the performance by
nations government of $1 billion saying mysteriously Goodnight,
in tax revenue. Im Randy Phillips, the name of
Mr. Shahs spokesman said the AEG Lives chief executive at the
Solo Capital Partners founder is time. But the audio problems arose
staying in Dubai pending the inves- largely because Prince had brought
tigation. U.K. financial-crime and in his own speakers, which con-
regulatory authorities raided Solos flicted with the in-house system,
London offices late last year, peo- and because the sound technician
ple familiar with the investigation Prince had brought was used to
said. The hedge funds website says working smaller clubs, according
it is in the process of an orderly to one of these people.
wind-down. The spokesman for Prince had a long relationship
Mr. Shah denied any wrongdoing. with AEG, which helped him net
AEGs Prince tribute concerts $44 million from his 2004 Musi-
are to include performances by cology tour and produced his 2006
Morris Day and the Timea band Las Vegas residency at the Rio ca-
that Prince assembledand Sly & sino and his appearance at the Prince, center above, on stage in Montreal with his backup band 3rd Eye Girl
the Family Stone bassist Larry 2007 Super Bowl Halftime Show, last year. Below, Morris Day, in yellow suit, of the Timea band that Prince
Graham, a collaborator and friend this person added. helped assembleperforming in Beverly Hills in February.
who encouraged Prince to become Last month Princes former
a Jehovahs Witness. wife Manuela Testolini enlisted
Princes sister, Tyka Nelson, has Tim Swift, who heads AEGs live-
been involved in plans with both event unit, Bounce, to organize a
organizations, but Live Nation private memorial service for 200
wants to secure the approval of people, including Princes half-
other relativesincluding his five brother Omarr. The service, held
half-siblingsfor its celebration, on May 11 at the Motion Picture
said the people familiar with the Academy headquarters in Los An-
matter. geles, included a performance by
One of those people said that in Esperanza Spalding and Janelle
recent months, Prince had been Monae. Mr. Swift said he was in-
considering an arena tour but structed to keep the event free of
didnt intend to sign an overall press and purple decorations.
tour deal with either promoter. As word of the service spread,
GETTY IMAGES (2)

according to his spokesman. Mr.
Shah, a Prince fan, former DJ and
father of an autistic son, also is
the founder and owner of Solo
Capital Partners LLP, a hedge fund
that operated out of London and
Dubai. The fund is under investiga-
tion by Danish and British authori-
ties over trades that Danish prose-
cutors allege defrauded that
Prince was wary of others seeking some of Princes family members
to profit from his work and in re- became concerned that their own
cent years had a particularly chilly planned celebration would be up-
relationship with AEG, according staged, according to a person fa-
to people close to the late singer. miliar with the matter.
Princes frustration with AEG On her Facebook page before ute service for Prince that was or- lic event to take place in the near
became public in 2009 while he the private event, Ms. Nelson ganized or authorized by the fam- future. The statement promised
was playing a trio of shows at posted that contrary to previous ily or Paisley Park representatives. that details will be coming soon
three different venues in the com- and current reports, there has Together, the family is planning an and later added that the family is
panys Los Angeles entertainment been no memorial, funeral or trib- official memorial service and pub- aiming for August.
THE WALL STREET JOURNAL. NY Friday, June 3, 2016 | D7

ARTS & ENTERTAINMENT

A Bronx Dream
Of Grandeur
REVIEW
DOROTHY RABINOWITZ

Feed the Beast

Begins Sunday, 10 p.m., AMC

In this tale of love, loss and
death-defying ambition set in one
of the grittiest sections of New
York, two lifelong friends hope to
fulfil their dream of opening a
high-end restaurant equal to the
finest in the city and doing it on
their home turfthe bleakest
Bronx. And bleakness, its soon
clear, is a core element of this
saga whose opening scenes intro-
duce Tommy Moran (David
Schwimmer) waking up in the sty-
gian darkness of an apartment
bearing no small resemblance to a
long abandoned factory. Tommy,
the more stable of the two part-
ners, relatively speaking, is wak-
ened by his dutiful 10-year-old son
bringing him coffee. Hes TJ, a
wary-eyed, sad-looking child
whose shock at seeing his adored
mother killed by a hit-and-run
driver has caused him to lose the
power of speech. In Elijah Jacobs
fine portrayal, hes nonetheless
heart-stirringly, sometimes un-
bearably, eloquent.
Elsewhere, in the neater pre-
cincts of a Bronx prison, there is
Tommys friend Dion Patras (Jim
Sturgess), whos doing time and
who has a coke habit. Hes not un-
happy. Hes cooking in prison for
an appreciative set of dinerspo-
lice personnel and guardshis
brow furrowed with concentration
as he sauts and slices. Its the de-
ceives news of his early release,
won by his lawyer. Its not her only
gift. The creators of this 10-epi-
sode series (showrunner Clyde
Phillips)based on the Danish
Bankerothave packed the first
episode with audience entice-
ments: among them a heavy-
breathing, if also woefully uncon-
vincing, sexual encounter between
Dion and his female attorney, a
borderline hot number.
This will go nowhere. Dion
clearly has other things on his
mindhes in deep trouble with
the local mob, and has the most
ominous of mobsters, Woijchik
(Michael Gladis, admirably menac-
ing), pursuing him for money he
supposedly owes. Woijchik, not for
nothing called the tooth fairy, is
well known for carrying a longish
instrument useful for extracting
teeth, the punishment he visits on
uncooperative people.
By the second episode the se-
ries has settled into sturdy, ten-
sion-filled drama, much of that
tension in the relations between
these two friends, best pals since
they were boys bound together by
unhappy childhoods. Tommy is an
upright citizen devoted to his son,
appalled at any violation of the
lawthe sort of thing Dion has no
trouble doing, and never had. He
had an ideal marriage with a
woman he loved, now lost to him,
which is why he drinks. He goes,
regularly, to grief groups, and
takes part earnestly in the discus-
sion. He chides Dion for telling him
to snap out of his funk, that hes
never known what it was to have
loved a woman so much, to have
Outcast
Begins Friday, 10 p.m., Cinemax
Kyle Barnes (Patrick Fugit) is
the unlikely hero moved to search
married her and brought up a child
with her. Its the sort of tone
deep-felt certitude, with a faint
touch of righteous complaint, that
Mr. Schwimmer carries off to per-
fection.
Hes the great strength of the
series, along with Mr. Sturgess,
whose Dion is a commanding por-
trait of endless faith in his dream,
to say nothing of endless resil-
ience. He survives atrocious acts of
physical violence perpetrated by
his mob pursuer with the kind of
caring for him. Still, its clear from
the outset, nobody is to be trusted
in a family like his, and it turns out
that nobody should be.
Across town, 8-year-old Joshua
From left, John
Doman, Elijah
Jacob and David
Schwimmer
aplombthe incredible kind, that
islast seen in the hero of 24.
Still Mr. Sturgess makes it work. It
helps that by a certain point audi-
ences will urgently want his
maimed finger, or other parts nec-
essary for this master chef to carry
on, to be restored to top working
order, which is invariably the case.
Much the same can be said for
the powers of this beguiling tale
whose kitchen scenes and gourmet
dish preparations provide the ulti-
mate sizzle.
tween scenes of demonic mayhem.
Kyle was destined for his unhappy
fate thanks to a tormented child-
hood under the control of a pos-
sessed mother. The show isnt

FROM TOP: AMC; FOX INTERNATIONAL STUDIOS

finitive introduction to what drives
Dion, the high greater than any
that cocaine can produce in him
his passion for the creation of ex-
quisite dishes, perfectly blended
tastes. (His friend Tommy, a for-
mer sommelier, has his own obses-
sion, in this case with fine wines,
about which his knowledge is en-
cyclopedic, and his drinking of
which, heavy.)
In the midst of serving, Dion re-
for answers in Outcast, an unre-
mittingly grim 10-part tale of de-
monic possession based on the
Skybound/Image Comics series.
Hes committed an unspeakable of-
fense in his past, we learn at the
beginning, and is forbidden to meet
with his child. Kyle has a married
sister, comparatively normal looking
Patrick as these relations goan upbeat
Fugit sort devoted to cleaning him up,
Austin (Gabriel Bateman) is clearly
possessed by satanic powers, and
showing signs of affliction terroriz-
ing to see. The opening scenes of
the series, which involve Joshua,
are not for the faint-hearted. They
are also a clueworth heedingto
the extremes of horror images to
which this series aspires.
Not that Outcast doesnt take
a crack at regular storytelling be-
without its family-values theme or,
for that matter, an intriguing char-
acterthe hard-drinking, no-non-
sense Reverend Anderson (a
strong portrayal by Philip Glenis-
ter), engaged in constant war
against the forces of darkness,
which abound everywhere, as he
relentlessly warns his flock. For all
its grisly nature, an involvingly sin-
ister tale.

An Ibsen in Outline
REVIEW the most seasoned American playgoers that you
have to wonder how much sense it makes to
TERRY TEACHOUT present so radical a rethinking of the play to
viewers who necessarily know so little about it.
Nevertheless, a two-hour Peer Gynt is better
Peer Gynt than no Peer Gynt at all, and when a gifted di-
Classic Stage Company, 136 E. 13th St., rector like Mr. Doyle turns his hand to such a ven-
New York ($60-$65), 212-352-3101/866- ture, one cannot but profit from seeing how he
811-4111, closes June 19 goes about it. His English-language adaptation, for
instance, contains any number of felicitous
touches. Here, for instance, is how he renders
New York Peers climactic outburst: Where was my self
American stagings of Peer Gynt are scarce to my true selfthe Peer who bore Gods stamp on
the point of singularity. Mark Lamos directed it at his brow? It compares quite well with Christo-
Hartford Stage in 1989, but Im not aware of any pher Frys stylish and effective verse translation:
subsequent full-length regional productions, and Where was I myself, the entire, true man? /
Peer Gynt hasnt been seen on Broadway in any Where did I have Gods mark on my forehead?
form since 1960. John Doyles new Classic Stage Mr. Doyles staging, by contrast, struck me as al-
Company revival would most penitentially drab, de-
thus be of signal impor- nuded of much of the plays
tance regardless of its Gabriel humor and stripped of Edvard
qualityand in spite of the Ebert Griegs justly popular inciden-
inescapable fact that Mr. tal music (which in this coun-
Doyle, unlike Mr. Lamos, try is far better known than
has given us not the real the play itself). Mr. Ebert is
right thing but an intermis- plausible enough as Peer Gynt,
sion-free two-hour adap- lively and blustery, but I didnt
tation of Henrik Ibsens find him compelling. It wasnt
five-hour masterpiece, per- until I listened to a 1946 re-
formed in modern dress on cording of a radio broadcast of
a bare platform by a cast Ralph Richardsons still-cele-
of seven. Fortunately, his brated Old Vic assumption of
version is directed and the title role, though, that I
acted with considerable understood what was missing
imagination, but theres no from Mr. Eberts performance:
denying that it amounts to Peer is a classical role, and Mr.
a Peer Gynt suite, a pro- Ebert is an unmistakably mod-
duction that whets the ap- ern performer who doesnt
petite rather than sating it. have the histrionic resources
No matter how its needed to bring it to full life.
staged, Peer Gynt is con- What we have here, then,
ceptually vast in scope, a is something not unlike a pen-
JOAN MARCUS

picaresque five-act verse cil sketch of Peer Gynt, one

play about a vain young
adventurer (Gabriel Ebert)
who travels around the
world in search of himself,
but in the end finds nothing but emptiness within.
Beautiful earth, forgive me for having trod you to
no purpose, he cries at plays end. I fear being a
dead man before I die! Kenneth Tynan summed it
up well when he said that Peer Gynt remains
unrivaled as a study of the fallacy that is inherent
in total dedication to self-fulfillment.
Such tales cannot be told often enough, and
Peer Gynt would doubtless be far better known in
this country if it were even somewhat more man-
ageable in size and scale. Alas, it is all but impossi-
ble to produce in anything remotely resembling its
original form save in a festival setting. Hence Mr.
Doyles scaled-down, unsparingly cut production,
performed in the round in his own prose adaptation
of the original Dano-Norwegian text.
Cutting the classics is by no means a bad
thing. If it were illegal, nobody would do Hamlet,
and some great but long-winded plays of the
past, like George Bernard Shaws Heartbreak
House, can actually be improved by judicious
pruning. But Peer Gynt is so unfamiliar to even
that demands an enormous
amount of imaginative partici-
pation on the part of the au-
dience. But the play, with its
protean symbolism, amply rewards such participa-
tion, and youll have no trouble following this com-
pressed version, even though the cuts are so deep
that it will sometimes feel as though youre watch-
ing a synopsis of the play being acted out onstage.
Mr. Doyle will become Classic Stages artistic
director next season, and this production, for all
its flaws, bodes well for his coming tenure. As his
2013 Classic Stage revival of Passion proved,
few stage directors are better at making exciting
things happen in a small space, or in taking ad-
vantage of the intimacy that is the hallmark of
live theater. It may well be that in Peer Gynt he
has sought to do too much with too little, but
when it comes to the classics, its the journey, not
the arrival, that matters.
Mr. Teachout, the Journals drama critic, is
the author of Satchmo at the Waldorf, which
runs through June 12 at Palm Beach Drama-
works. Write to him at tteachout@wsj.com.
D8 | Friday, June 3, 2016
SPORTS
U.S. Soccers Arrested Development
Klinsmann sticks with the
old guard for Copa America
as next generation stalls
BY MATTHEW FUTTERMAN
The U.S. Mens National Team
that Jurgen Klinsmann leads on to
the field for the opening match of
the Copa America Centenario Friday
night in Santa Clara, Calif., will fea-
ture plenty of familiar faces.
Too many, in fact, because this
veteran team is not the squad Klins-
mann expected to be fielding just
two years before the 2018 World
Cup in Russia. This tournament was
supposed to be a coming out party
for a new generation of national
team stars, a chance to begin turn-
ing the page from the era of 33-year-
old forward Clint Dempsey, 34-year-
old midfielder Jermaine Jones and
37-year-old goalkeeper Tim Howard.
If players of that vintage are
starting for the U.S. in Russia in two
years, the problems for U.S. Soccer
are far more troublesome than any
opponent. Yet Klinsmann, who is
also U.S. Soccers technical director,
said he was left with little choice but
to rely on trusted veterans. In his
view, many players touted as the
core of U.S. Soccers next generation
have stagnated and have not proven
they are ready for the crucible of a
major international tournament or
the responsibility of making sure the
home team doesnt get embarrassed.
We hoped that a lot of them
would be a lot stronger, Klinsmann
said of the younger generation dur-
ing a recent interview at the teams
pre-tournament camp in Florida.
We have too many of our talents
sitting on benches. They are sitting
on benches in Mexico, in European
leagues, on MLS teams.
How a country of more than 300
million still struggles to produce
players capable of earning a spot on
the worlds top club teams is the
puzzle that Klinsmann hoped he
might have begun to solve by now.
Its especially pressing as the U.S
welcomes several of the sports big-
gest stars and top national teams for
a special, 100th anniversary edition
of South Americas continental
championship. The tournament in-
cludes the 10 South American teams
and the six best teams from North
and Central America and the Carib-
bean. Lionel Messi and top-ranked
Argentina are here. So is James
Rodrguez and third-ranked Colom-
bia, which plays the U.S. in the open-
ing match Friday.
The tournament almost didnt
happen. Officials in nearly every na-
tional soccer association in South
America were implicated in the al-
leged bribery conspiracies that have
resulted in more than 40 indict-
ments of soccer officials and execu-
tives, including the leaders of the
North and South American continen-
tal confederations.
For months, the international
soccer business in the Americas
ground to a halt. Then, partly be-
cause the national associations in
South America desperately needed
the money, the Copa America was
resuscitated. That meant Klinsmann
needed to figure out quickly how
this event could best serve the U.S.
team in its final push towards Russia
and beyond.
Yet with his up-and-comers not
developing as he wanted, Klinsmann
is sprinkling in a few relative new-
comers, like 17-year-old Christian
Pulisic and 23-year-old Bobby Wood,
alongside the likes of 34-year-old
Kyle Beckerman and 30-year-old
Geoff Cameron.
Its the fascinating process of
sports, Klinsmann said. When are
the younger ones stealing the spots
from the older ones. When does the
chemistry of the team shift to new
Dont Be Stuck on the Bathroom Line When Overtime Starts
Overtime in the NHL playoffs is
supposed to be sudden death, but
for fans it often feels more like a
prolonged, tortuous death. At any
second, a freak bounce of the puck
has the potential to end the
The Count
gameand possibly the entire sea-
son. What makes it even more
emotionally draining is how over-
time can last for multiple periods,
sometimes taking up more time
than regulation games length.
But this year the hockey gods
have been kind enough to put fans
out of their misery quickly.
The median length of the 19
overtime games this postseason is
just 4:55, slightly less time than the
regular-season overtime limit of five
MAIN: PAUL HARDING/ACTION IMAGES/ZUMA PRESS; GROUPS: MARTIN BERNETTI/AGENCE FRANCE-PRESSE/GETTY IMAGES (2); COUNT: MATT KINCAID/GETTY IMAGES
leadership within the group? Who
takes over within the locker room?
Who drives that energy?
Paul Breitner, a World Cup win-
ner with West Germany in 1974 and
one of Klinsmanns heroes, ques-
tioned the logic of sticking with an
aging group, insisting the only way
to figure out whether young players
are ready is to let them play. Try it
and you will see if it is the right de-
cision or not, Breitner said.
In soccer, transitions like this one
rarely turn out well. Most national
team coaches dont stick around for
two World Cup cycles, and those
who do often regret it. Former U.S.
coach Bruce Arena followed up a
quarterfinal run in the 2002 World
Cup with a winless campaign in
2006. Vincente del Bosque led Spain
to its first championship in 2010
then failed to get out of the group
stage four years later.
Klinsmann desperately wants his
team to finish in the top four at the
Copa and turn the page on a disap-
pointing past year. An ugly loss in
Guatemala in March put the team on
the precipice of elimination from
World Cup qualifying. More than re-
sults though, nearly five years into
his tenure, Klinsmann is obsessed
with battling what he sees as the
cultural impediments to the U.S. pro-
ducing good soccer players.
Four years ago he ridiculed na-
tional team players who allowed
themselves to be celebrated for los-
ing in the World Cup round of 16 in
2010. He tore into Dempsey for being
puffed up after he became a top
scorer in the Premier League be-
cause he did it for a mediocre club,
Fulham.
Now his targets are the talented
18-to-23-year-olds in the U.S. pro-
Quick Decisions
Since the 2006-07 postseason, the median length of playoff
overtimesorted from shortest to longest.
MEDIAN OT GOAL WITHIN
YEAR GAMES LENGTH < 1 MINUTE
2016 19 4:55
2009
2012
16
25
5:06
5:39
2008 16 6:04
2014 26 6:54
2010 18 8:10
2011 22 8:12
2013 27 8:44
2015 19 8:47
2007 17 16:04
Source: Stats, LLC
minutes. The Pittsburgh Penguins on
Wednesday scored just 2:35 into the ex-
tra session courtesy of Conor Sheary,
gram who fizzle out or suffer debili-
tating non-contact injuries that
could be a result of insufficient
strength training. He complains that
the players in the younger genera-
tion are too steeped in the rhythms
and habits of baseball, basketball
and football, which encourage them
always to look off the field for guid-
ance instead of taking responsibility
for their own actions.
To encourage independence,
Klinsmann has given little in the way
of specific instruction to younger
players battling for a spot on the na-
tional team. When Darlington Nagbe,
a 25-year-old midfielder, showed up
for his first national team camp,
Klinsmann told him only to get com-
fortable with the group and express
himself on the field.
Steve Birnbaum, a 25-year-old
defender, said he and Klinsmann
barely talked at a recent January
camp. He wasnt expressive, Birn-
baum said. We discussed having my
personality show throughout the
camp and the games.
Klinsmann explains that this is by
design. Since the clock never stops,
soccer players have to get comfort-
able with taking control of the game
instead of relying on a coach for in-
put. I can have a timeout in basket-
ball and I can have a different play,
Klinsmann said. I can tell them all
the time when there is a commercial
break, O.K., next strategy. Soccer is
an inner-driven sport and this is one
of the of the biggest challenges.
The same dynamic needs to
emerge among the younger players
off the field as well, he said. He has
watched the U.S. under-17 team out-
play sides from Brazil and England
in recent years, but most of those
players have made little impact pro-
GOAL WITHIN
< 5 MINUTE
2 10
1
0
8
12
1 7
0 7
2 5
1 6
0 7
2 8
0 2
taking a 2-0 Stanley Cup Finals lead
over the Sharks ahead of Game 3 Sat-
urday in San Jose. The Penguins made
Jurgen Klinsmann is
disappointed at the
failure of young U.S.
players to develop.
fessionally. While the talent is there,
he said other ingredients might be
missingtoughness, the drive to
take on the best competition, the
creativity to thrive in a sport where
decisions have to happen on the fly.
Last month in an intra-squad
scrimmage during camp, he stopped
the action and scolded 20-year-old
Matt Miazga, a 6-foot-4 inch de-
fender who plays for Chelsea in the
English Premier League. Miazga was
playing several yards away from an
opposing striker, instead of getting
close and using his size to intimidate
his opponent. Miazga didnt make
the roster for the Copa America.
Jordan Morris, the promising 21-
year-old striker, also didnt make the
squad. Earlier this year, Morris
chose to sign with the Seattle
Sounders instead of the German club
Werder Bremen, where he would
have had to battle for respect and
playing time the way Klinsmann
wants American players to do.
In Morriss place, fans will
likely see plenty of Wood, the
Hawaiian forward who has spent
the past five years toiling in the
lower rungs in German soccer. His 17
goals in 31 games this past season
earned him a transfer to Hamburg in
Germanys top division.
He fought his way through,
Klinsmann said of Wood. He be-
came a young adult.
Now, Klinsmann just needs a few
more of those by 2018.
AN AMERICAN ODYSSEY
Read a full Q&A with
WSJ
.COM
head coach Jurgen
Klinsmann on the
future of U.S. soccer at
wsj.com/sports
landers and Washington Capitals in
first period, with more than half
Stats, LLC. And if the Sharks are to
the Finals despite a Game 5 loss to the
Tampa Bay Lightning that came just 53
seconds into overtime.
THE WALL STREET JOURNAL.
James
Rodrguez
How the Copa
Groups Line Up
Group A:
The U.S. Mens National Team is
stocked with players in their
mid-30s, and needs younger guys
like striker Bobby Wood, to show
they will be ready for Russia in
2018. This group provides no room
to breathe, with third-ranked Co-
lombia and Real Madrids James
Rodrguez presenting a rough
opener. After that comes Costa
Rica, with a core that nearly made
the World Cup semifinal. Thanks to
a vaunted offside trap, an inconsis-
tent and defensive-minded Para-
guay team eliminated Brazil in the
2015 Copa America then got
spanked 6-1 by Argentina in the
semi.
Group B:
Even without Neymar, who is skip-
ping the tournament to rest for the
Olympics, Brazil is plenty danger-
ous as head coach Dunga has the
Selecao thinking big once more.
Ecuador finished 2015 with five
consecutive wins and should come
second in this top-heavy group
since Haiti hasnt made the World
Cup since 1974, and Peru has just
one win in six games so far in Con-
mebols World Cup qualifying tour-
nament, despite a third-place finish
in the 2015 Copa.
Group C:
Mexico is the class of Concacaf
after almost missing the 2014
World Cup. El Tri has not lost in
nearly a year, and striker Javier
Hernndez looks back to his best
after scoring 17 goals in 2015-16.
The biggest challenge will come
from Uruguay, though Barcelona
striker Luis Surezs sore ham-
string seems likely to keep him
out of the group stage. Shaky but
speedy Jamaica appeared ascen-
dant last year in the Gold Cup un-
der German coach Winfried Scha-
fer, but in World Cup qualifying
they are one loss
Alexis from elimina-
Snchez tion. Venezuela
is the worst
team in South
America.
Group D:
Argentina,
the top-
ranked
team in
the world
featuring the
worlds best
player, Lionel
Messi, should
advance with
Chile, the defending
champion, which
features Arsenals
Alexis Snchez. Argen-
tina finished second at
the 2014 World Cup and
2015 Copa America.
Anything but the trophy
will be a major disappointment.
Panama, which just missed the
2014 World Cup on a freak play,
and Bolivia, which looked meek in
a recent friendly with the U.S., are
likely cannon fodder.
This is a far cry from overtime
marathons like The Easter Epic
game between the New York Is-
1987, which stretched over four
overtime periods and remains the
longest Game 7 in NHL history.
(The Islanders won, 3-2).
This year, just four of 19 over-
time games have gone beyond the
(10) lasting under 10 minutes.
Over the past 10 years, the av-
erage overtime is about twice as
long as this year7:47, according to
get back into this series courtesy
of sudden death, they can fall back
on their history of being the mas-
ters of the quick kill. Their 10 over-
time wins in less than the expected
time is two more than any other
team. Michael Salfino
 Lenny Kravitzs
onetime Miami Beach
home hits market
for $25 million M2

HOMES | MARKETS | PEOPLE

2016 Dow Jones & Company. All Rights Reserved.

|
MANSION
UPKEEP | VALUES | NEIGHBORHOODS
THE WALL STREET JOURNAL.
| REDOS |
No man needs a vacation so much
as the man who has just had one.

SALES
Elbert Hubbard

| FIXTURES | BROKERS
Friday, June 3, 2016 | M1

THE CROSSTOWN GETAWAY

Busy with work schedules and wary of weekend traffic, some homeowners are buying second homes
in the same city as their primary residence; when a vacation is just a subway ride away.
JOE SCHMELZER FOR THE WALL STREET JOURNAL

SECOND HOME, SAME CITY Andrew Rhoda in the loft he shares with husband J. Ben Bourgeois in Los Angeles up-and-coming Downtown. With tall ceilings and exposed brick, it is very different from
the couples primary homea Spanish-style house in the Hollywood Hills about 8 miles away. The couple enjoy the lofts proximity to restaurants and galleries and use it for date nights.

BY CANDACE TAYLOR
ON FRIDAY EVENINGS, Eric Straus and his
wife, Varinda Missett, pack their things, grab
their dog and leave their Midtown Manhattan
apartment for their weekend home50 blocks
downtown.
Last summer, Mr. Straus and Ms. Missett paid
$1.988 million for a two-bedroom apartment in
the Manhattan neighborhood of Tribeca, which
they use as their weekend getaway.
What I love is that unlike the Hamptons, its
a quick subway ride down there, and it totally
feels like youre on vacation, Mr. Straus, 56,
said. In comparison to the hustle and bustle of
Midtown, their cobblestone Tribeca street is
quietit feels like a country home.
Getting away from it all doesnt have to
mean actually getting away. Some home buy-
ers are buying vacation homes in the same
city or metropolitan area as their primary res-
idence. They say the key to relaxation is a
change of scenery, even if its just a few miles
from where they normally live.
Different neighborhoods have different experi-
ences, said New York City real-estate agent Shaun
Osher of Core, who said he has several clients with
more than one home in the city. If you walk on
Please turn to page M6

A LUXURY LAIR INSIDE

FOR DIRTY LAUNDRY

Multiple washers and dryers, rotary irons and
steaming cabinets make chores easier. A
posh setting makes tasks (almost) enjoyable.

dry room would cost about

BY CECILIE ROHWEDDER
TO ATTACK ROUGHLY 24
loads of laundry a week, El-
lie Cartner brought in heavy
artillery. Her familys 8,900-
square-foot house in States-
ville, N.C., has two laundry
rooms, one near her three
daughters bedrooms and the
other in the master bedroom
closet. Its equipped with a
washer and dryer, built-in
ironing board, center island
for folding and sink for spot
cleaning.
It is the most efficient
MIKE BELLEME FOR THE WALL STREET JOURNAL (3)
$35,000. Like other builders, THE JUICE
Mr. Walker says laundry Does a car charger
rooms are getting bigger and boost home value? M5
better, with storage space for
Costco runs and gift wrap,
charging stations for elec-
tronics and custom cabinetry.
Above all, todays laundry
rooms are making it easier
to do laundry. In high-end
homes, laundry rooms now
often come with multiple
washers and dryers, lots of
counter space for sorting or
folding, and custom drying
racks. Homeowners are ask- NBA FINALS
ing for laundry chutes and Homes for sale in the

space in my home, says Ms.
Cartner, a 40-year-old part-
time pharmacist who also
works at her husbands land-
scaping company.
She didnt spare any ex-
pense, says Travis Walker,
president of Walker Wood-
working, a Shelby, N.C., com-
pany that built the cream-col-
ored cabinets in the Cartners
combined closet and laundry
room. The Cartners declined
CLEANING UP Ellie Cartners Statesville, N.C., home has a laundry room in the master bedroom to disclose specific costs, but
closet, above, with custom cabinetry, sink, center island and built-in ironing board. A separate laun- Mr. Walker estimates that the
dry room near her daughters rooms helps with the familys roughly 24 loads of laundry each week. cabinetry for a similar laun-
smart appliances that they host cities M10
can control from the office.
Laundry loversor those
who hate it enough to want
the job done with maximum
efficiency build in space
for steaming cabinets or ro-
tary irons that press table-
ware and bed linens within
minutes.
Why did I get it? To save
me time, says Stan Hard-
man of Los Angeles, who re-
cently ventured to the Miele KING OF BROOKLYN
showroom in Beverly Hills to Larry King on his
Please turn to page M4 childhood homes M12
M2 | Friday, June 3, 2016 THE WALL STREET JOURNAL.

MANSION
ABSOLUTE
AUCTION PRIVATE PROPERTIES | CANDACE TAYLOR

No Minimum / No Reserve
Lenny Kravitzs Onetime Miami
The Gavel Drops June 28 th

Home Seeks $25 Million

FROM TOP: FELIPE ARIANO; NICK SPRINGETT PHOTOGRAPHY (2)

Richard Lobenherz, Berkshire Hathaway Home Services
MI License ID 6502133180

www. BayHarbor . auction

presented by

Lake Front Estate

Bay Harbor, Michigan (800) 552-8120
A onetime home of musician Hertzberg of Coldwell Banker set Islands home for $8.95 mil- is known for redeveloping Miami
Lenny Kravitz in Miami Beach Residential Real Estate. With lion in 2001 home shortly after it Beachs Fontainebleau Hotel in
is going on the market for $25 about 125 feet of waterfront on was built and put his mark on the 1970s. He didn't respond to
million. Biscayne Bay, the roughly - it, bringing in sand to create the requests for comment, but Ms.

ABSOLUTE In a guard-gated community,

the Mediterranean-style four-
bedroom house measures about
acre lot also has staff quarters,
a guesthouse, a private beach
and a boat dock, Ms. Hertzberg
beach, Ms. Hertzberg said. In
2005, he sold it for $14.5 million
to current owner Stephen Muss,
Hertzberg said he renovated the
property after buying it, expand-
ing the master suite. Mr. Kravitz,

AUCTION 11,270 square feet and has a

movie theater, gym and elevator,
according to co-listing agent Jill
said. There is also a saltwater
swimming pool.
Mr. Kravitz bought the Sun-
according to property records.
Mr. Muss hails from a New
York City real estate dynasty and
who has owned other proper-
ties in Miami Beach, couldnt be
reached for comment.
WATERFRONT ISLAND ESTATE
15 acre estate with Japanese gardens, sold furnished
with exquisite art, antiques and 2 Steinway pianos

2% Broker Cooperation
Phone Bidding Available

AUCTION SATURDAY,
JUNE 25 AT 1 PM, ET
180 ABRAMS MOUNTAIN ROAD
I S L E S B O R O I SLAND, M AINE HOUSE ONCE OWNED BY ACTOR JOHN BARRYMORE BACK ON MARKET
OPEN HOUSE THIS FRIDAY, The longtime home of early in December. The housebut a pet vulture, Mr. Mank said. Braude, a business manager for
SATURDAY & SUNDAY 10AM-4PM Hollywood actor John Barry- not the vacant parcelsis now The five-bedroom main house the Scotts. They connected the
more is returning to market for returning to market with David measures approximately 10,000 aviary to the main house and
Exclusive Film at DeCaroAuctions.com $29.95 million. Kramer of Hilton & Hyland. square feet, Mr. Kramer said. turned it into a two-story living
The Spanish-style estate had The house was built in the Above the master suite, there is space with a kitchen and bed-
been owned since the 1990s by 1920s and purchased several a hidden room that can only be room on each floor.
Top Gun director Tony Scott, years later by Mr. Barrymore. accessed by a ladder. There are We wanted to create sepa-
who died in 2012 at age 68. The actor lived there until he two guesthouses on the rate living areas for our twin
His widow, Donna, first listed died in the 1940s, according to grounds, which span about 1 boys to have when they grew
the Beverly Hills home and sev- historian Gregory Mank, author acres and include a pool, a koi older, Ms. Scott wrote in an
1.800.332.3767 eral nearby vacant parcels in of Hollywoods Hellfire Club. pond and an outdoor fireplace. email. They also added a four-
In cooperation with Martha Dischinger of Downeast Properties
September 2015 with Westside Mr. Barrymore added a number Mr. Scott purchased the car subterranean garage for Mr.
Robert C. Strout, ME Auctioneer #1333
Estate Agency for $42.5 mil- of structures to the property, in- property in 1992 for over $4 Scotts vintage Porsche and
lion, then took it off the market cluding an aviary where he kept million, according to Lisa motorcycle collection.
Over 35 Years

Boca Like Never Before

Via Mizner, offering a luxurious lifestyle complemented by sweeping ocean and golf course vistas,
boutique shoppes and restaurants, and access to Via Mizner Golf & City Club all anchored by the
legendary Mandarin Oriental and The Residences at Mandarin Oriental.
Live above it all.

888.839.5566 | moresidencesbocaraton.com

The Residences at Mandarin Oriental, Boca Raton (The Residences) are not developed, sponsored, owned, offered or sold by Mandarin Oriental Hotel Group or any affiliate thereof (MOHG), and MOHG makes no representation, warranty or guaranty of any kind
regarding The Residences.The developers and owners of The Residences use the Mandarin Oriental name and trademarks subject to the terms of revocable licenses from MOHG which may expire or be terminated.
ORAL REPRESENTATIONS CANNOT BE RELIED UPON AS CORRECTLY STATING REPRESENTATIONS OF THE DEVELOPER. FOR CORRECT REPRESENTATIONS, MAKE REFERENCE TO THIS BROCHURE AND TO THE DOCUMENTS REQUIRED BY SECTION
718.503, FLORIDA STATUTES, TO BE FURNISHED BY A DEVELOPER TO A BUYER OR LESSEE.
Branding and Marketing by Conway + Partners
THE WALL STREET JOURNAL. Friday, June 3, 2016 | M3

MANSION
EARLY AOL ENGINEER TRADES
VIRGINIA ESTATE FOR PARSONAGE

Ken Huntsman and his wife About 30 miles from Wash-

recently moved into a church ington, the Clifton property in-

FROM TOP: SEAN SHANAHAN (2); BEN FITCHETT

parsonage measuring about cludes a roughly 12,000-
1,600 square feet. That is square-foot house and a
smaller than the master suite of guesthouse, according to listing
the house they left behind: a agent Jeff Wilson at TTR So-
roughly 13-acre Washington, thebys International Realty. On
D.C.-area estate that is going on the lower level there is a gym,
the market for $7.495 million. sauna and a 20-seat movie
Mr. Huntsman, one of the theater. The family room is pic-
original software engineers at tured above.
AOL, said when he spent The grounds include a
roughly $20 million building the swimming pool and pool
Clifton, Va., property about 15 house; an outdoor multisport
years ago, he knew he was un- court for tennis, volleyball and screened-in pavilion with a tom-made for the space and Huntsman, 63, and his wife, change, but were enjoying it,
likely to recoup the investment. basketball; and a horse stable stone fireplace. wouldnt look right in a regu- Marci, a pastor, moved out of Mr. Huntsman said.
In all the books they say you with four stalls and an out- The property is being sold lar-sized home, Mr. Huntsman the house when she was as- The couple plan to eventu-
will never get the money out of door riding ring. In a corner of with furniture included because said. signed to a church in Southern ally relocate to another prop-
a custom home, he said. the wooded estate is a most of the pieces were cus- Now retired from AOL, Mr. Virginia. Its been quite a erty they own in Colorado.

EMPTY GREENWICH VILLAGE BUILDING FLIPPED FOR $31 MILLION

LUXURY AUCTION SM

Less than two years after

purchasing a double-wide Man-
hattan townhouse for $19.2
million, the owners have sold
the building for $31 million, ac-
cording to people with knowl-
edge of the deal.
The sellers were Enrique
Alonso and his wife, Katherine
Pozycki-Alonso, who had
bought the roughly 12,000-
square-foot Greenwich Village
building in September 2014 as
an investment. The building
was originally two townhouses
that were combined to create a
multifamily building with 11
apartments. Two rent-stabilized JUNE 30, 2016 | FORT LAUDERDALE, FL
tenants were living in the build-
ing when the Alonsos pur- Recently Offered for $10 Million.
chased it; the structure is now
vacant.
Now Selling At or Above $4 Million!
The Alonsos planned to sep-
arate the two townhouses and POINT LOT ESTATE WITH 300 FT. OF DEEP-WATER FRONTAGE.
redevelop them. Before con-
struction began the couple re-
ceived a number of unsolicited 800.215.1457
offers from buyers looking to PointLotLuxuryAuction.com
use the building as a single-
family home, and they decided UPCOMING LUXURY AUCTIONS SM

to accept one of them.

Mr. Alonso is a senior vice
president at developer SJP
Properties, and his wife is a
vice president at the company
as well as the daughter of SJP KAUA I, HI BUCHA NA N, M I BIG S KY, MT
CEO Steven J. Pozycki. This listing agent of the building need of an extensive renova- that the rent-stabilized tenants
was a personal project and not when the Alonsos bought it in tion. He said the price jump have since vacated, freeing buy-
affiliated with SJP. 2014, said the structure was in likely is the result of the fact ers to renovate as they wish. I N C O O P E R AT I O N W I T H
Matthew Pravda of Leslie J.
Garfield & Co., who was a co-  See more photos of notable homes at WSJ.com/Mansion. Email: privateproperties@wsj.com Platinum Luxury Auctions LLC is a licensed Florida Real Estate Corporation (CQ1036963), licensed Florida Auction Business
(AB2956) and an auction-marketing rm. Bid calling by Florida Real Estate Broker Trayor R. Lesnock (BK3118083).

2 NEW YORK AUCTIONS

IN THE CITY OR AT THE BEACH

UPPER EAST SIDE | JUNE 30TH WESTHAMPTON BEACH | JULY 14TH

Previously $2.995M. Selling at or Above $1.99M Previously $3.875M. Selling Without Reserve

ALL UPCOMING AUCTIONS

Larchmont, NY Mallorca, Balearic Islands, Spain Princeton, NJ 08540 (Lawrence Township) Los Cabos, Mexico Calgary, AB Jupiter, FL Nashville, TN
Reno/Lake Tahoe, NV Aventura, FL Grand Lake, CO Big Sky, MT Jackson Hole, WY Vero Beach, FL Salt Lake City, UT Park City, UT
Scottsdale, AZ Stowe, VT Maui, HI San Diego County, CA Banner Elk, NC Vanua Levu, Fiji

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No. 10003391H; Wyoming Auction License No. 190600. Auctions may be held in connection with local auctioneer and/or brokerage and are subject to local requirements. This is not meant as a solicitation for listings. Brokers are protected and encouraged to participate. See Auction Terms and Conditions for full details.
 M4 | Friday, June 3, 2016
A LUXURY LAIR FOR DIRTY LAUNDRY
DINA AVILA FOR THE WALL STREET JOURNAL (3)
DAN PIASSICK (3)
FRENCH CHIC In Dallas, Betty
Lou Phillipss laundry room has
two sets of washers and dry-
ers. Theres also a piggy bank
for change left in pockets.
MIKE BELLEME FOR THE WALL STREET JOURNAL
HIGH EFFICIENCY Ellie and Chris Cartner with their kids, from left, Claire, Ella Grace and Mollie, in the laundry room of their 8,900-
square-foot home in North Carolina. It is the most efficient space in my home, Ms. Cartner says.
ONLINE
auction
Southern Sports Estate
Huntsville, Alabama
RETIREMENT FORCES SALE
Estate of NFL Hall of Famer
for more details visit
www.InterluxE.com/124531
ONLINE AUCTION BEGINS JUNE 27TH
14.34 Acre Gated Sports Estate Offering the Ultimate in Privacy
and Luxury 8 BR, 12 BA 6-Car Garage Football Field
Basketball/Tennis Court Workout Room Game Room
Home Theatre In Ground Pool Guest House
1 (888) 415-LUXE
In cooperation with:
Kathy & Ron Tyra
RE/MAX Alliance - AL
Kathy License #: 000073468
Ron License #: 000083996
NY THE WALL STREET JOURNAL.
MANSION
OLD FASHIONED Michelle and
Russell Long, with two of their
kids, Tai, left, and Mei. They
have two sets of washers and
dryers in their Eugene, Ore.,
home. Antique oil lamps sit on
shelving above the faucet.
Continued from page M1
buy a $3,000 professional
steam rotary iron. Plus, you
can treat yourself to Waldorf
Astoria-like pillowcases, he
says.
The machine, which looks
like an old-fashioned
wringer-style washer mangle
with a wide roller and foot
pedal, makes it easier to
keep Mr. Hardmans Califor-
nia king-size sheets wrinkle-
free and neatly creased.
It also rapidly irons his
underwear, flattening briefs
so that they take up less
drawer space. Doing a weeks
ironing takes two hours, far
less than before, says 64-
year-old Mr. Hardman, a re-
tired airplane-parts manu-
facturing executive. The
white rotary iron now com-
plements his charcoal-black
washing machine and fire-
engine-red dryer.
Laundry rooms are a pri-
ority for home buyers. The
space topped a list of most
wanted features in a survey
published in March by the
National Association of
Homebuilders. Around 92%
of respondents found a laun-
dry room more important
than features such as an out-
side patio or table space for
eating in the kitchen.
When Cierra and Kevin
Buchwald built their six-bed-
room, 5,500-square-foot
house in the Woodlands,
Texas, in 2013, they asked
home builder Darling Homes,
a unit of Scottsdale, Ariz.-
based Taylor Morrison, to re-
vise the floor plan and turn
one of three upstairs bath-
rooms in their house plan
into an extra laundry room.
Son Blake, 13, kept his own
bathroom, but daughters De-
laynie, 10, Adelyn, 8, now
share for the convenience of a
second laundry area.
I dont want to be run-
ning up and down the stairs
with their stuff, says Ms.
Buchwald, a 39-year-old
stay-at-home mother.
Another benefit: While the
main laundry room adjoins
the master closet and a hall-
way off the kitchen, the up-
stairs one is near the media
room. There, Ms. Buchwald
takes baskets of laundry for
folding and ironing while
watching The Real House-
wives of New York City and
other digitally recorded
shows. Between the kids
2016 California Closet Company, Inc. All rights reserved. Franchises independently owned and operated.
soccer, dance, gymnastics,
golf and fishing clothes, Ms.
Buchwald does at least eight
loads of laundry a week, half
of them upstairs. Eventu-
ally, I want them to do their
own laundry, she hopes.
Oregonians Russell and Mi-
chelle Long would have liked
a small washer and dryer in
every bedroom suite of their
6,300-square-foot, seven-bed-
room house in Eugene. But
the Longs, who have four
children and often host ex-
change students, feared that
smaller units could not han-
dle the familys large loads of
laundry. You cant throw 13
pairs of jeans in there, says
California Closets creates custom storage Mr. Long, 43. If you have such as bed linens and ta-
solutions for every room in your home. kids and a pool, you need to
be able to wash a lot of
Visit our showroom or call today to arrange your
clothes and towels at once.
complimentary in-home design consultation. Instead, the couple in-
stalled two washers and two
U PPE R EAST SI DE212.517.7877 dryers made by LG Electron-
Not an offer to residents of those states where
TR I B ECA & B ROOKLYN 646.486.3905 ics Inc. with the biggest ca-
registration is required. Property being offered by
the seller. Agent is not engaging in auctioneering NASSAU & QU E E NS 516.334.0077 pacity they could find. When
activities. Interluxe is not acting in the capacity of
a broker or auctioneer and provides advertising and WESTCH ESTE R & H U DSON VALLEY 914.592.1001 remodeling the laundry room
online bidding services only. For full terms please visit
www.interluxe.com/termsofuse.
as part of a house extension
californiaclosets.com in 2011, Mr. Long, who owns a
company called Aloha Home
Builders, also designed farm-
house-style cabinetry and
backsplashes, with shelves to
display his wifes antique oil
lamps inherited from her
great-great aunt and glass
jars filled with detergent and
old-fashioned clothespins.
Its my favorite room in
the house now, says 45-
year-old Ms. Long, a designer
for crafts company Stampin
Up. The double appliances
have halved the time she
spends on laundry, to around
eight hours a week.
Now Ms. Long can do on a
Saturday what used to take
an entire weekend. Its so
fast, so efficient, she says.
To that end, LG Electron-
ics, based in South Korea,
has high expectations for its
twin wash system:
Launched in January, the
front-load washing machines
sit on a pedestal that con-
tains a second washer for
smaller loads or delicates.
Depending on the model,
they retail for between
$1,500 and $2,580.
Likewise, Germany-based
Miele is preparing to intro-
duce the Anywhere Dryer in
the fall of 2017. This stackable
unit can be placed in any
closet or corner because it
doesnt require ductwork
leading to an outside dryer
vent. The company is consid-
ering an $1,800 price tag.
As laundry rooms move up
in the house, looks are get-
ting more important. In the
laundry room of their 3,600-
square-foot, six-bedroom
home outside Edmonton, Al-
berta, Dawn and Mark Asbell
used the same slate flooring
as on the rest of the ground
floor and outside deck. The
rooms taupe-colored cabi-
nets mirror those in the
kitchen. The idea, says Don
Zwarych, co-owner of Van-
couver-based Zwada home
Interiors & Design, which led
the 2009 project, was to cre-
ate flow and consistency
throughout the house.
Ms. Asbell also has a dou-
ble set of washers and dryers,
wraparound counter space
and a sink with an old-fash-
ioned washboard for scrub-
bing. Five kids, three of them
still at home, busy with sports
and sometimes forgetful of
hanging up towels, help amass
20 to 25 loads of laundry a
week. An attractive, high-per-
formance laundry room makes
the chore more enjoyable,
says Ms. Asbell, 51. In all, the
laundry-room project cost an
estimated $14,000.
In the laundry room of
her own chateau-style home
in Dallas, interior designer
and author Betty Lou Phillips
maximized form and func-
tion. Two sets of washers
and dryers, a pull-out drying
rack and a Miele rotary iron
have pink walls as a back-
drop, as well as two chande-
liers and a wall of custom
cubby holes for wicker laun-
dry baskets, each lined with
pink cotton and white Bel-
gian lace.
The cubbies have labels,
ble linens, hand-painted by
Houston artist Allan Rode-
wald. The artist also painted
pink hearts on a piggy bank,
placed on a washer for
change left in pockets.
Doing laundry is a mun-
dane task, says Ms. Phillips,
who was unable to give the
cost of the project. I wanted
to give the room a look that
was anything but mundane.
THE WALL STREET JOURNAL. NY Friday, June 3, 2016 | M4A
M4B | Friday, June 3, 2016 NY THE WALL STREET JOURNAL.

Crown Jewel Penthouse, West Chelsea One of a Kind Residence, Midtown East
520 West 19th Street Adam Taylor
917.428.7146
50 Central Park South Kyle W. Blackmon
646.798.8898
5 BED | 5.5 BATH | $18,500,000 ataylor@compass.com 3 BED | 3.5 BATH | $23,500,000 kblackmon@compass.com

Expansive Loft, Soho Stunning Townhouse, Soho

73 Wooster Street James Morgan
646.681.3709
2 Centre Market Place The Hustis/Jovanovic Team
646.320.4667
4 BED | 4.5 BATH | $9,950,000 james.morgan@compass.com 4 BED | 3.5 BATH | $7,995,000 mark.jovanovic@compass.com

Poised 1920 Townhouse, Chelsea Mint Condo, Tribeca

303 West 18th Street Julia Hoagland
646.832.3544
275 Greenwich Street The Hustis/Jovanovic Team
646.320.4667
9 BED | 5 BATH | $6,950,000 jhoagland@compass.com 3 BED | 3 BATH | $2,750,000 mark.jovanovic@compass.com

MINT Renovated High Floor Co-op, Greenwich Village High Floor With Stunning Views, Midtown East
105 West 13th Street Joshua Wesoky, Steve Dawson
646.382.1074
235 East 55th Street Joshua Wesoky, Steve Dawson
646.455.3781
2 BED | 2 BATH | $2,199,000 sd@compass.com 1 BED | 1.5 BATH | $1,395,000 jw@compass.com

New York Los Angeles Washington DC Miami Boston The Hamptons Santa Barbara Aspen

compass.com 212.913.9058 compass compassinc compass

Real estate agents affiliated with Compass are independent contractor sales associates and are not employees of Compass. Equal Housing Opportunity. Compass is a licensed real estate broker located at 90 Fifth Avenue, 3rd Fl. NY, NY 10011. All information furnished regarding property for sale or rent or regarding financing is from sources deemed
reliable, but Compass makes no warranty or representation as to the accuracy thereof. All property information is presented subject to errors, omissions, price changes, changed property conditions, and withdrawal of the property from the market, without notice. To reach the Compass main office call 212 913 9058
THE WALL STREET JOURNAL. Friday, June 3, 2016 | M5

MANSION
THE MARKET

An Inexpensive Amenity Adds Some Juice

More homeowners are installing charging stations for electric carsjust in case; in California, a new law

BY LEIGH KAMPING-CARDER

SELF-DESCRIBED CAR GUY

Eric Brassard recently paid
$846,000 for a two-bedroom, two-
bathroom home in the Silver Lake
area of Los Angeles. One big draw:
It was wired to allow a charging
station for vehicles.
The 29-year-old TV-develop-
ment executive didnt even own an
electric car. But after his move in
April, he leased a BMW i3then
bought a charging station for it on
Amazon for less than $500.

JOE SCHMELZER FOR THE WALL STREET JOURNAL (3)

Theres something about it that
has a total cool factor to me, he
said of his car. Several of his
neighbors have electric cars in
their driveways, he added.
When Arjan Dijk built his home
in 2014, he felt he should make it
as good as it gets for the environ-
ment. Now under contract and
last listed for $3.75 million, the
San Francisco three-bedroom with
a one-bedroom cottage has many
green features: solar panels, low-
energy appliances, a high-effi-
ciency boiler. There is also a
charging station in the garage
where the 45-year-old technology
executive can juice up a car.
The two homeowners are
among a growing number of home
buyers and developers installing
charging equipment at home. It is
a relatively low-cost amenity that
appeals to tech lovers, committed
greens and car aficionados. New
condominium developments across
the U.S. also are including them.
I would not build a residential
project today without providing
for a charger for electric vehicles,
said Aldo Pascarella, 48, a real-es-
tate lawyer who developed a town-
house in Greenwich, Conn., with a
charging station in 2012.
Having a charger puts you in
the game where youre communi-
cating at the level of how affluent
buyers live today, said Gregg
Lynn, an agent at Sothebys Inter-
national Realty in San Francisco
who listed Mr. Dijks home. Even
homeowners who dont have elec-
tric cars install the chargers to at-
tract future buyers, he said.
Since January 2015, the median
listing price of a home with a
charging station is $713,500, com-
pared with $194,560 overall, in
part because the amenity is more
common in high-price markets. It
isnt clear exactly what premium,
if any, a charging station adds.
Electric cars represent less than
1% of the new-car market in the
U.S., said Joel Levin, executive di-
rector of San Francisco-based ad-
vocacy group Plug In America. But
the market is growing. More than
400,000 electric vehicles were on
PLUGGED IN Eric Brassard, left, with
his dog, Deacon, was drawn to his
two-bedroom in the Silver Lake area
of Los Angeles, top, in part because it
was wired for electric cars. His BMW,
above, getting charged in his garage.
the road at the end of 2015, a plugs into a standard 120-volt out- Future condo buyers will likely
roughly sixfold rise over 2010, U.S. let. Because it can take 10 to 20 have more options for buildings
Department of Energy figures hours or more to get a full charge, with communal chargers.
show. In March, Teslas mass-mar- some homeowners install higher- In New Yorks Tribeca area, the
ket sedan drew 180,000 preorders voltage stations, cutting charging Related Companies 46-condo
the day it launched. time roughly in half, said Will building, 70 Vestry, will have eight
The trend is particularly big in Beckett of the Electric Auto Assn. charging stations. Home prices
California. Since April 2011, 39% of These high-voltage stations are there start at $6.25 million.
homes listed with the charging wall-mounted apparatuses about In Boston, the Four Seasons Pri-
feature are in California, followed the size of a small backpack and vate Residences One Dalton Street
by Florida (22%) and Massachu- cost from about $300 to $1,000. will open with six valet-run sta-
setts (18%), according to real-es- They can be bought online or at a tions in its 300-car garage, said
tate website Trulia. dealership. They use the same Richard Friedman, CEO of Carpen-
As of July 1, 2015, California has 240-volt outlet as a clothes dryer, ter & Co., the developer.
required all newly built homes, in- and most people hire an electri- Mr. Friedman plans to live in
cluding multifamily residential cian to install the dedicated line, the condo-hotel hybrid, where the
projects of 17 units or more, to for about $1,000 and up. 170 units are listed for $2 million
have the capacity to support elec- Homeowners who install resi- to $40 million. In a building offer-
tric-vehicle charging. Some cities, dential charging equipment before ing dog-washing services, a golf
such as Denver, have similar laws. the end of 2016 can receive a fed- driving range and a private restau-
Most electric vehicles come eral income-tax credit up to $1,000. rant, charging stations seemed es-
with a cordset, a charger under Many states, municipalities and sential, he said. You cant miss
the hood that, using an adapter, utilities offer further incentives. this oneits too important.

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or visit oneriverpoint.com
Exclusive Sales & Marketing by Douglas Elliman Development Marketing
This is not intended to be an offer to sell, or solicitation to buy, condominium units
to residents of any jurisdiction where such offer or solicitation cannot be made or are
Photo Credit: Kevin Lynch

otherwise prohibited by law, and your eligibility for purchase will depend upon your
state of residency. This offering is made only by the prospectus for the condominium and no
statement should be relied upon if not made in the prospectus. The information provided,
including pricing, is solely for informational purposes, and is subject to change without notice.
Oral representations cannot be relied upon as correctly stating the representations of the
SU2C.org/LungCancer developer. For correct representations, make reference to this brochure and to the documents
required by section 718.503, Florida statutes, to be furnished by a developer to a buyer or lessee.
M6 | Friday, June 3, 2016 THE WALL STREET JOURNAL.

MANSION

GETAWAY
Continued from Page One Weekends
the street in the West Village, its
like a different world to the Upper
East Side.
Real-estate agents said the
trend is being driven by busy
professionals, many of whom
need to be close to work in case
of an emergency, or simply dont

ALEXIA FODERE FOR THE WALL STREET JOURNAL (3)

want to spend weekends in traf-
fic. Nationwide, the yearly delay
per auto commuter was 42 hours
in 2014, up from 37 in 2000, ac-
cording to a 2015 report from the
Texas A&M Transportation Insti-
tute and Inrix.
Having a second home nearby
comes in handy for overflow
house guests, or when a dinner
downtown goes late. Urban revi-
talization also plays a role: Many
buyers want to experience the
new restaurants and art galleries
Weekdays
popping up in gentrifying neigh-
borhoods. Another bonus is that BY THE BEACH Beatriz Barrios, top left, started looking for a beach vacation home and realized that if it was far away her husband, Gerard, would have difficulty
a home in an up-and-coming city spending much time there. So she instead bought a condo on the island of Key Biscayne, above left, about a 30-minute drive from their house, above right.
neighborhood can be a good in-
vestment. Weekdays
Beatriz Barrios had lived for
years in a four-bedroom house in
South Miami when she started
looking at vacation homes in Flor-

JOE SCHMELZER FOR THE WALL STREET JOURNAL (2)

ida beach towns like Vero Beach
and Naples. She quickly realized
that it would be difficult for her
husband Gerard, a doctor, to spend
much time there.
If we go too far from home,
were never going to go, she said.
Instead the couple paid $360,000
for a two-bedroom beachfront
condo on the island of Key Bis-
cayne, just across the bridge from
Miami proper.
The Barrioses stay in South Mi-
ami during the week and spend
Weekends
many of their weekends on Key Bis-
cayne. Because its only about 13 SECOND CHANCES Andrew Rhoda and husband J. Ben Bourgeois at their Spanish-style home in the Hollywood Hills, above left. The couple love creating
miles from their house, Ms. Barrios spaces, which is one reason why they also have a loft in Los Angeles Downtown, above right. The loft is a very different experience, said Mr. Rhoda.
said its easy to go back and forth
for parties or to see friends. She said she has noticed more Brook- in Red Hook, Brooklyn. After sell- way to visit. Plus she was drawn Gramercy Park neighborhood. In-
also likes to spend the occasional lynites vacationing within the city ing the Greenport place she to the Rockaways surfing and stead of buying a larger home, we
beach day on Key Biscayne during in the Rockaways, a strip of beach- chose last summer to rent a nightlife. thought it would be much more
the week. front in Queens. houseboat for six weeks in Far Its like Brooklyntheres fun to have a completely different
Having two homes in one city is Victoria Hagman, Realty Col- Rockaway. The journey from Red something happening all the time, environment in the city for us to
particularly attractive to business lectives founder, used to own a Hook can take as little as 30 min- said Ms. Hagman, 35. experience, said Ms. Ravitz, 58.
owners with erratic schedules, said vacation home in Greenport on utes by car, letting her go back Empty-nesters Alan and Sue Plus their Midtown art gallery
New York City real-estate agent Long Islands North Fork, at best and forth when she needed to for Ravitz live primarily in a one-bed- 57W57Arts requires them to work
Tina Fallon of Realty Collective. She a two-hour drive from her home work, and friends took the sub- room apartment in Manhattans nearly every Saturday.

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 THE WALL STREET JOURNAL.
Weekdays
THE FIRST ONE-BEDROOM Alan and Sue Ravitz, below, live primarily in this apartment in Manhattans Gramercy Park
neighborhood, above. Instead of buying a bigger home, the empty nesters decided to try another part of the city.
DOROTHY HONG FOR THE WALL STREET JOURNAL (5)
THE SECOND ONE-BEDROOM The couple bought this one-bedroom on the Brooklyn Heights Promenade, about 40 minutes away by subway, above right. We
dont have a 2-hour drive in traffic, and it feels completely different, Ms. Ravitz said. Another plus was the chance to renovate and decorate another space.
So they bought another one-bed- and decorate another space.
room on the Brooklyn Heights Their Brooklyn Heights apart-
Promenade, about 40 minutes away ment, which they bought at auc-
by subway. tion in 2010 for $440,000, re-
We dont have a 2-hour quired a gut renovation.
drive in traffic, and it feels com- Andrew Rhoda, 35, said he and
pletely different, Ms. Ravitz. his husband, J. Ben Bourgeois, also
Part of the allure for the Ravitzes love creating spaces. That is one
was also the chance to renovate reason why, in addition to their
When you give, bonds grow stronger.
Few things in this life are as important as family.
Thats why your gifts to The Salvation Army
make such a vital difference. Thanks to you, we
dont just help families with emergency food,
Alcohol & Drug Rehabilitation
MANSION
three-bedroom house in the Holly-
wood Hills, they have a loft about
8 miles away in Los Angeles up-
and-coming Downtown.
The two homes couldnt be
more different. The Hollywood
Hills house is Spanish-style with
a pink-stucco exterior and a
swimming pool. The loft has 17-
housing, and utility assistance. We also strive to
keep the family together, growing closer and
stronger, all through their recovery. Give today
at 1-800-SAL-ARMY or salvationarmyusa.org.
Family Counseling
Weekends
foot-high ceilings and exposed
brick. With a private rooftop pa-
tio and a view of the nearby
high-rises, its a very different
experience from the beach or the
Hills, Mr. Rhoda said. And while
most people drive from place to
place in the Hollywood Hills, the
Downtown loft lets them walk to
Food Pantry After School Programs
Friday, June 3, 2016 | M7
restaurants and galleries.
After buying the loft, they
started using it for date nights
about once a week. The space
also comes in handy when Mr.
Rhoda, a real-estate agent at
Compass, has showings down-
town or when Mr. Bourgeois, an
event producer, is working on
downtown projects.
Plus, the loft has turned out to
be a really great investment, said
Mr. Rhoda, estimating that it has
more than doubled in value since
they bought it for $395,000 in 2011.
Owners said they have meth-
ods of ensuring the nearby sec-
ond home doesnt just feel like
an extension of the first. Ms. Bar-
rios said her Key Biscayne condo
is decorated in beachy whites
and blues to accentuate the vaca-
tion-home feel. She also keeps an
entirely separateand more ca-
sualwardrobe at the condo to
avoid having to bring clothing
back and forth.
She added that she and her
husband make sure not to bring
any work with them to Key Bis-
cayne. When I go over there I
make sure its only to relax, Ms.
Barrios said. Otherwise youre
not getting away.
One challenge of this strategy, at
least in New York City, is that some
co-ops dont allow pieds--terre.
Even those that do may still look
askance at an owner with another
home in the city, for fear the apart-
ment would be used for nonresiden-
tial purposes, said Gill Chowdhury
of Douglas Elliman Real Estate, who
represented Mr. Straus in the pur-
chase of the Tribeca apartment. Mr.
Straus was initially looking for a co-
op, Mr. Chowdhury said, but ex-
panded the search to condos after
losing out on a West Village apart-
ment for that reason.
The process went smoothly af-
ter that. Mr. Straus said he and
his wife use the Tribeca apart-
ment not only on weekends, but
if they have an event downtown
during the week, or to house
overflow visitors over Christ-
mas. His wife also uses the apart-
ment as a home office.
Im so in love with Manhat-
tan, and my wife is too, he said.
We wanted another Manhattan
experience.
M8 | Friday, June 3, 2016 THE WALL STREET JOURNAL.

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Magnificent farm house C. 1904 owned by With its own private beach, this 4 bedroom Gracious Belmont Hill Estate w/inground pool Coastal contemporary w/pool. 0.31 acres. Distinctive waterfront on Bass River with
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Robert Paul Properties Robert Paul Properties Long Realty Company Robert Paul Properties Lost Tree Realty
T. Guthrie/ S. Mabile 508.246.3236 Robert Kinlin 508.648.2739 Denice Osbourne 520.909. 6592 Paul Grover 508.364.3500 Denice Sexton 561.662.8344

osterville, caPe cod, ma | $2,095,000 osterville, caPe cod, ma | $1,895,000 WYckoFF, NJ | $1,749,000 summit, NJ | $1,695,000 JacksoNville, Fl | $1,695,000
WEB ID: WFJW4 WEB ID: PAFW4 WEB ID: CMLJ4 WEB ID: ECKU4 WEB ID: AOSQ4
Brand new construction in the heart of Wianno, Beautifully renovated 5 BD home close to Custom 5 bdrm, 5.5 bath manor. Exquisite Noteworthy historic European-style home Enjoy panoramic views of the river from almost
spacious 4 bedroom light filled home. the village on 3 acres w/pool & pool house. living space. Professionally landscaped. w/unique architecture and fabulous location. every room of this exquisite home.
Robert Paul Properties Robert Paul Properties Terrie OConnor Realtors Lois Schneider Realtor Watson Realty Corp
Paul Grover 508.364.3500 Paul Grover 508.364.3500 201.891.0100 Lois Schneider Realtor 908.277.1398 Joseph Poletto 904.738.6446

2016 Luxury Portfolio International. Offering is subject to errors, omissions, change of price, or withdrawal without notice. Prices may have been converted from original currency at time of printing and may differ from current rates. All information considered reliable; however, it has been
supplied by third parties and should not be relied on as accurate or complete. Equal Housing Opportunity.
 M10 | Friday, June 3, 2016 NY/NE THE WALL STREET JOURNAL.

MANSION
RELATIVE VALUES

A REAL-ESTATE FULL-COURT PRESS

As the NBA finals begin, a look at top properties for sale in the cities that made it to the conference finals

$4.925 million $28.5 million

CLOCKWISE FROM TOP LEFT: CARL STAUB; MATT MCCOURTNEY; CALEB COLLINS/NESTED TOURS; JOHN TRIGIANI

Rocky River, Ohio San Francisco

Four bedrooms, five bathrooms, one half-bath Seven bedrooms, eight bathrooms,
three half-baths
The 8,600-square-foot home in a Cleveland
suburb sits on 0.81 acre. Many of the rooms Located about a block north of the Presidio of
in the open-plan design have views of Lake San Francisco, this 16,000-square-foot, fully ren-
Erie and Rocky River. The full, finished base- ovated mansion has ornate architectural detail-
ment has a bar, a lounge space and a workout ing. Amenities include an elevator, a spacious
area. roof deck and parking for four cars.
Agent: Kim Crane, Howard Hanna Agent: Olivia Hsu Decker, Decker Bullock So-
thebys International

$11.33 million $4.75 million

Toronto Oklahoma City
Six bedrooms, 10 bathrooms Five bedrooms, five bathrooms, one half-bath

The custom-built home has over 15,000 square Set on 20.82 acres, this 11,250-square-foot
feet. It sits on about half an acre with a pool and home has a two-story foyer with a grand,
overlooks the second hole of Rosedale Golf Club. curved staircase. The pool area has lush land-
Meticulous woodwork and tile work throughout scaping, a waterfall and a swim-through grotto.
the open-plan home. The two-story home has a Most rooms overlook the landscaped grounds.
finished, walkout basement and eight-car garage. Agent: Rhonda Bratton, Churchill-Brown &
Agents: Roger Kilgour and Ruth Hamilton of Re/ Associates
Max Hallmark Realty Ltd. Beth DeCarbo

ADVERTISEMENT

Distinctive Properties & Estates

To advertise: 800-366-3975 or WSJ.com/classieds

ILLINOIS NEW JERSEY

    


 

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      REAL Trends and The Wall Street Journal present the 10th annual

 

          Top 1,000 Real Estate Professionals special advertising feature, which
 
          pays tribute to the industrys best professionals who are realizing
   
 
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incredible success in the luxury real estate sector.

 
 
    
 
  NEW HAMPSHIRE
            
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#! $% &  !     '" Celebrate your agents, brokers or team by promoting their
accomplishments in this special advertising feature.
    

  

 

     






  

 
 





  
 

 

  Issue Date: June 24 | Close Date: June 17 | Section: Mansion
  

! " #$" "  


        
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&'()*+,),, For advertising opportunities, please contact:


 
 &'()*+**)) sales.realestate@wsj.com | 800.366.3975

FRANCE VIRGINIA

92 .6 ACRE VINEYARD ESTATE

Located near the Blue Ridge Parkway
and Shenandoah National Park. Ready
for winery transformation with infra-
structure in place. Includes 7 acres of
mature grapevines, rolling pasture and
hardwoods, stocked pond, 5,000 SF
residence with spectacular views plus
caretakers home.
Bill Howard & Assoc. RE LLC
Contact Glenda Howard or Carol Carder
info@carderhowardhometeam.com

  

434-220-4738



 
NORTH CAROLINA



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DISTINCTIVE
PROPERTIES
(800) 366-3975

   
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Place an ad with the self-service tool at:
 
  
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 2016 Dow Jones & Company, Inc. All Rights Reserved. 4AO1554.
 
    
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2015 Dow Jones & Company, Inc.



            
               
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THE WALL STREET JOURNAL. NY / NE Friday, June 3, 2016 | M11
M12 | Friday, June 3, 2016 THE WALL STREET JOURNAL.

MANSION
HOUSE CALL | LARRY KING

Before the Suspenders, a Tight Belt

The talk-show host reflects on growing up in Brooklyn below the poverty line, and his path to Beverly Hills

The sound of my mothers scream was ter-

AMANDA FRIEDMAN FOR THE WALL STREET JOURNAL (PORTRAIT); CLAUDIO PAPAPIETRO FOR THE WALL STREET JOURNAL
rible. I was 9 and had just arrived outside my
familys small two-story home at 208 Howard
Ave. in Brooklyn. Before I could walk in, a
cop rushed out, scooped me up and put me in
his squad car. The next thing I knew we were
in a movie theater watching Bataan.

Looking back, I suppose watch-

ing a war film is a strange place
to learn of your fathers death in
1943, but the cop was a friend of
my father and wanted to break
the news to me easy. Later I
learned my father, Eddie, had died
of a heart attack while telling a
joke on the bus bringing him back
to the city from his defense-plant
job in New Jersey.
I took my fathers death badly. I
didnt go to the funeral. I was an-
gry at him for dying. I had loved
my father and admired his easy hu-
mor and charm, especially when he
was tending his bar and grill on
nearby Fulton Street.
Soon after my father died, ev- HARD START Larry King, above, in his Beverly Hills, Calif., home. Left, a recent photograph of the building at 208 Howard
erything changed. He didnt have Ave. in Brooklyn where Mr. King lived during his early childhood.
an insurance policy and my mother,
Jennie, was a housewife. Her first did. I didnt care. I was going to be for Kings Wholesale Liquors. He You only get nervous when youre in the foyer and an elevator. I also
son, Irwin, had died of appendicitis a radio announcer. said, How about Larry King? trying to be someone else. have a trophy room. Whenever I
at age 6, before I was born. Now Growing up, I lived for the ra- I had always been ambitious, My first celebrity interview in feel low, I go in there.
her husband was gone. dio. I was captivated by it. On-air but once I was on the air that day, Miami was with singer Bobby My biggest fear is dying and not
My mother moved my younger actors and announcers created this nothing came out of my mouth. I Darin in 1959, when I did a morn- being around to know whats next.
brother, Marty, and me to an attic world that stirred my imagination. was so nervous I just kept playing ing show for WIOD at a deli called I went to my doctor recently for a
apartment in a three-story walk-up I left Brooklyn for Miami in records. Finally, the general man- Pumperniks. He was an insomniac physical exam. He said Im in great
in the Bensonhurst section. We 1957, when I was 23. I was told by ager came into the studio and in- and had been listening to me. He shape, that despite all of my past
were on welfare for two years. My a radio producer in New York that sisted I get on the air. walked in and we spoke for an ailments, Im going to live to be
mother took in seamstress work, Miami had a lot of radio stations After Swinging Down the Lane hour on my show. 90. I told him, Hey, thats only 8
but she had to hide it whenever and that it would be easier for me by Les Elgart finished, I turned on Im still curious about people years away. How about 100?
the relief inspector came around. to get my start there. My first job the mic and said, Hi, my name is and about whythe most impor- As told to Marc Myers
I started out in school as a good was at WAHR as a disc jockey. Larry King. All my life I wanted to tant word because guests cant an-
student. I skipped third grade. But But 10 minutes before I went on be on the radio. Well, here I am swer it in one word. Larry King, 82, is an award-win-
after my fathers death, I lost in- for the first time, the general man- and Im frightened. Listeners re- Today, my wife, Shawn, and I ning radio and TV host. He is the
terest. When I graduated from ager said that my name, Zeiger, sponded by calling in. and our two boys live in Beverly co-founder of Ora TV, which pro-
high school, I didnt go to college. was too ethnic. In his office, the That day, I learned a valuable Hills, in a two-story, five-bedroom duces Larry King Now and Poli-
We didnt have the money, and I newspaper was open on a table. lesson: Be yourself and it wont house. It has a pool, a backyard, ticking With Larry King, his online
wouldnt have gotten in even if we He looked at the paper, at an ad matter what the audience thinks. two winding staircases that meet interview shows at Ora.tv.

OVERLOOKS THE OCEAN,

BUT NEVER THE DETAILS.

When was the last time you said wow and really meant it?
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