For personal, non-commercial use only. Do not edit, alter or reproduce.
For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.
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What’s
News
Business & Finance
U .S. employers are boost-
ing benefits at a faster
pace than salaries, a move that
gives them more flexibility
to dial back that compensa-
tion if the economy sours. A1
 Tesla said the Justice De-
partment has opened an in-
vestigation into the company
following Musk’s tweet about
securing funding to possi-
bly take the firm private. B1
 Facebook had been hag-
gling with financial firms
over its access to users’ sen-
sitive information for years,
well before criticism of its
handling of personal data. B1
 One of the largest-ever
sales of speculative-grade
debt was completed with
ease on Tuesday. B1
 General Mills is strug-
gling to revive sales in the
U.S. as growth in its new
pet-food business slows. B1
 The EU is investigating
possible collusion among big
German car makers over ex-
haust-systems technology. B2
 Mastercard, Visa and oth-
ers agreed to a $6.2 billion
settlement of a lawsuit over
the fees merchants pay. B5
 U.S. stocks rose as inves-
tors assessed trade devel-
opments. The Dow gained
184.84 points to 26246.96. B15
 Billionaire Jack Ma said
China didn’t push him to step
down as head of Alibaba. B4
 An SEC commissioner is
calling for beefed up oversight
of U.S. stock exchanges. B14
World-Wide
 China said it plans to
impose new tariffs on $60
billion in U.S. exports,
prompting Trump to reiter-
ate a threat to hit Chinese
goods worth more than
four times that much. A1, A10
 U.S. business groups
urged the Trump adminis-
tration to keep Canada in
an updated Nafta. A6
 Attorneys for the woman
who accused Kavanaugh of
sexual assault said she
wants a full investigation of
the allegations before she
testifies on Capitol Hill. A1
 North Korea agreed to
allow outside inspectors to
visit its missile test site and
said it would be willing to
decommission its nuclear-
enrichment facility. A11
 Russia blamed Israel for
the loss of a reconnaissance
plane downed accidentally
by Syrian forces reacting to a
raid by Israeli jet fighters. A8
 The U.S. ordered two
leading Chinese state-run
media organizations to reg-
ister as foreign agents. A6
 The U.N. said leaders of
Myanmar’s military should
be prosecuted for genocide
of the Rohingya minority. A11
 Four men who said they
were abused by a church
worker as children will re-
ceive a total of $27.5 million as
part of a settlement with the
Diocese of Brooklyn, N.Y. A2
 The Senate passed its sec-
ond spending bill in five days
as it seeks to avoid a shut-
down before midterms. A6
JOURNAL REPORT
AI Is New Tool
To Fight Hackers
Cybersecurity, R1-6
CONTENTS
Business News B3,5,7
Crossword.............. A16
Heard on Street. B16
Journal Report.. R1-6
Life & Arts...... A13-15
Markets............. B15-16
s 2018 Dow Jones & Company, Inc.
All Rights Reserved
* * * * * *
NASDAQ 7956.11 À 0.8% STOXX 600 378.73 À 0.1%
Korean Leaders Reach Agreement at Pyongyang Summit
KOREA BROADCASTING SYSTEM/ASSOCIATED PRESS
SIGNATURE PACT: South Korea’s President Moon Jae-in, left, and North Korean leader Kim Jong Un announced an agreement Wednesday
on steps aimed at breaking a diplomatic impasse over the North’s nuclear program. Mr. Kim said he would visit South Korea. A11
Judge’s Accuser Roils Hearing Plan
WASHINGTON—Attorneys
for the woman who accused
Brett Kavanaugh of sexual as-
sault said she wants a full in-
vestigation of the allegations
before she testifies on Capitol
Hill, throwing into doubt a
planned Monday hearing that
would have pitted her word
against that of the Supreme
Court nominee.
In a letter Tuesday to Judi-
ciary Committee Chairman
Chuck Grassley, attorneys for
m e
California college professor
Christine Blasey Ford asked
for “a full investigation by law
m rp
enforcement officials” to “en-
sure that the crucial facts and
witnesses in this matter are
assessed in a non-partisan
co Fo
After Storm, a Plague of Water
ANDREW CRAFT/THE FAYETTEVILLE OBSERVER/ASSOCIATED PRESS
n-
no
SUBMERGED: Flooding continued in the Carolinas in the wake of
Hurricane Florence. North Carolina is facing a housing crunch. A3
‘Sweet!’
Gmail Replies
Get Perky
i i i
Auto responses are
rolling out widely
and can be a bit off
BY DAVID MARCELIS
AND DOUGLAS MACMILLAN
When Jess Klein emailed
her mother to make plans, the
response startled her.
“Cool, see you there.”
Ms. Klein, a 38-year-old
Opinion.............. A17-19 from Brooklyn, was suspicious.
Property Report... B6
“Why is my mom talking like a
Sports........................ A16
Technology............... B4 Valley Girl?” she wondered.
U.S. News............. A2-6 She quickly found out her
Weather................... A16
World News...... A8-11
mother, a retired teacher, was
using Gmail’s Smart Reply fea-
ture, which Alphabet Inc.’s
> Google released widely this
summer. It displays three little
bubbles showing suggested re-
sponses at the end of some
Gmail messages.
“Google told me to say this,
Please turn to page A12
WEDNESDAY, SEPTEMBER 19, 2018 ~ VOL. CCLXXII NO. 67
10-YR. TREAS. g 13/32 , yield 3.048%
on
us l,
By Kristina Peterson,
al a
Natalie Andrews
e
and Peter Nicholas
ci on
manner.” But Mr. Grassley (R.,
Iowa) said Tuesday night that
he wasn’t prepared to wait for
an FBI investigation.
On Sunday, Dr. Ford made
er rs
public her accusations from
when she and Judge Ka-
vanaugh were teenagers at a
high-school party. Dr. Ford,
now 51 years old, alleged that
Judge Kavanaugh, 53, and one
of his friends had pulled her
into a bedroom, where she said
Judge Kavanaugh pinned her
to a bed, groped her and at-
tempted to remove her cloth-
Employers Choose
Bonuses Over Raises
BY TE-PING CHEN
AND ERIC MORATH
U.S. employers are boosting
benefits—including bonuses
and vacation time—at a faster
pace than salaries, a move that
gives them more flexibility to
dial back that compensation if
the economy turns sour.
The cost of benefits for pri-
vate-sector employers rose 3%
in June from a year earlier,
while the cost of wages and
salaries advanced 2.7%, the La-
bor Department said Tuesday.
The benefit gain was driven
by a nearly 12% increase in bo-
nuses and other forms of sup-
plemental pay. Paid leave, in-
cluding vacation time, rose 4%
in June from a year earlier.
The trend extends a long-
running but slow shift in com-
pensation toward benefits and
away from baseline salaries.
“Bonuses and supplemental
pay speak to labor market con-
ditions, and workers are in a
good spot to get a little more,”
said Ryan Sutton, a district
WSJ.com HHHH $4.00
OIL $69.85 À $0.94 GOLD $1,196.80 g $2.90 EURO $1.1670 YEN 112.36
China
Volleys
Tariffs
Back
At U.S.
Beijing takes aim at
$60 billion in imports;
Trump weighs levies on
nearly all Chinese goods
The Chinese government
said Tuesday it plans to im-
pose new tariffs on $60 billion
in U.S. exports, prompting
President Trump to reiterate a
threat to punch back by hitting
Chinese goods worth more
than four times that much.
By Lingling Wei
in Beijing and Jacob
M. Schlesinger
in Washington
Beijing also weighed whether
to stick with plans for upcom-
ing bilateral talks aimed at eas-
.
ing the conflict of retaliation
ly
and counter-retaliation, esca-
lated by Mr. Trump’s Monday
announcement of new import
taxes on $200 billion in Chinese
goods.
Mr. Trump responded to
China’s $60 billion pledge
later Tuesday by declaring
ing before she escaped. Judge While Dr. Ford’s camp had that “if there’s retaliation
Kavanaugh has categorically previously indicated she would against our farmers and our
denied the allegations, saying be willing to testify, her law- industrial workers and our
no such incident occurred. yers said Tuesday they feared ranchers, if any of that goes
After the allegations, Re- she would be questioned by on we are going to kick in an-
publicans had scheduled a senators “who appear to have other $257 billion.” He added:
hearing for next Monday to made up their minds that she “We don’t want to do it, but
hear from both Dr. Ford and is ‘mistaken’ and ‘mixed up.’ ” we’ll probably have no choice.”
Judge Kavanaugh. They said she had faced threats People familiar with admin-
Republicans have criticized to herself and her family. istration plans said they ex-
the late hour in which the alle- “She has been the target of pected Mr. Trump to issue a
gations came forward and de- vicious harassment and even formal statement over the
fended Judge Kavanaugh while death threats,” the lawyers next few days directing U.S.
working to avoid alienating fe- wrote, noting she had been Please turn to page A10
male voters before the mid- forced to move out of her home.
term election in November. An investigation would en-  U.S. retailers maneuver to
Polls suggest many women sure the Judiciary Committee beat new duties.................... A10
voters have been energized by Please turn to page A4  Heard on the Street: Tariffs
opposition to the Trump presi- could distort economy........ B16
dency and by the #MeToo  Sen. Feinstein plays key role  Companies press to keep
movement. in accusation.............................. A4 Canada in Nafta....................... A6
Secret Hospital Deals
Drive Rising Health Costs
Contracts with health insurers let hospitals hide prices from
consumers, add fees and discourage use of less-expensive rivals
BY ANNA WILDE MATHEWS ing any plans that didn’t include NewYork-
Presbyterian, according to the people.
Last year, Cigna Corp. and the New York Dominant hospital systems use an array of
hospital system Northwell Health discussed secret contract terms to protect their turf and
developing an insurance plan that would offer block efforts to curb health-care costs. As part
low-cost coverage by excluding some other of these deals, hospitals can demand insurers
health-care providers, according to people with include them in every plan and discourage use
knowledge of the matter. It never happened. of less-expensive rivals. Other terms allow hos-
The problem was a separate contract be- pitals to mask prices from consumers, limit au-
tween Cigna and NewYork-Presbyterian, the dits of claims, add extra fees and block efforts
powerful hospital operator that is a Northwell to exclude health-care providers based on
rival. Cigna couldn’t find a way to work around quality or cost.
restrictive language that blocked it from sell- Please turn to page A12
Salesforce.
Reaping Rewards
Change in compensation by type,
#1 CRM.
June 2009-June 2018
Ranked #1 for CRM Applications based on
IDC 2017 Market Share Revenue Worldwide.
Bonus and supplemental pay
59% 19.6%
Retirement benefits
42.1
Paid leave
29.2 7.1%
Health and other insurance
6.5%
27.7
4.0%
Wages and salaries
22.6 3.2%
Source: Labor Department
THE WALL STREET JOURNAL. 2013 2014 2015 2016 2017
Source: IDC, Worldwide Semiannual
president for staffing agency Software Tracker, April 2018.
Robert Half. “Companies are
still reluctant to move base
wages up too much. It’s a lot
harder to take that away than
bonuses.” salesforce.com/number1CRM
The increase in bonus com- CRM Applications market includes the following IDC-defined functional markets: Sales, Customer Service, Contact
Center, and Marketing Applications. © 2018 salesforce.com, inc. All rights reserved. Salesforce.com is a registered
pensation in part reflects lump- trademark of salesforce.com, inc., as are other names and marks.
Please turn to page A2
 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.
A2 | Wednesday, September 19, 2018
Brooklyn Diocese New Firetruck Doused and Ready to Roll in Texas
Reaches Accord
On Child Abuse
BY CORINNE RAMEY
Four men who said they
were abused by a church
worker as children will receive
a total of $27.5 million as part
of a settlement with the Dio-
cese of Brooklyn, in what the
victims’ lawyers say is among
the largest U.S. awards paid to
individual victims of Catholic
Church-related abuse.
The men each will receive
$6.875 million, said lawyers Pe-
ter Saghir and Ben Rubinowitz,
who represented the unidenti-
fied men. The money will be
paid by the diocese and an un-
named after-school program,
the lawyers said.
“The thing that is atrocious
about this is the signs that
were missed by his supervi-
sors,” Mr. Saghir said. “There
were clear warning signs.”
A spokeswoman for the dio-
cese said it “highly contested
The diocese includes
1.5 million Catholics
in the boroughs of
Brooklyn and Queens.
its role in the sexual abuse of
four preadolescents.” The
spokeswoman noted the man
implicated in the case was a
volunteer, not clergy or an em-
ployee of the diocese or parish.
The diocese includes 1.5 mil-
lion Catholics in the New York
City boroughs of Brooklyn and
Queens.
The settlement is the latest
in multimillion-dollar payments
Catholic dioceses across the
country have made to victims
in recent decades. In May, the
Archdiocese of Saint Paul and
Minneapolis announced a $210
million settlement with 450
victims of clergy sexual abuse.
In the months since, the
church has been hit by a series
KEVIN HAGEN FOR THE WALL STREET JOURNAL
Brooklyn Diocese Bishop Nicholas DiMarzio. The Catholic diocese
settled with men who said they were abused by a church worker.
no
DEF Y EL PRIMERO 21
ZENITH, THE FUTURE
O F S W I S S WAT C H M A K I N G
Cellini
New York
Feldmar Watch Company
Los Angeles
Luxury of Time
Orlando
Swiss FineTiming
Chicago
w w w . z e n i t h - w a t c h e s . c o m
of sex-abuse scandals, most no-
tably a grand-jury report last
month that detailed the abuse
of more than 1,000 children by
clergy in Pennsylvania over
more than a half-century.
In the Brooklyn case, Angelo
Serrano, who had been a
worker at St. Lucy-St. Patrick
parish in Brooklyn, was con-
victed in 2011 of sex crimes in-
cluding charges that he en-
gaged in multiple acts of sexual
conduct with a child under 13.
Mr. Serrano, whose posts in-
cluded director of religious ed-
ucation at the St. Lucy-St. Pat-
rick parish, was sentenced to
15 years in prison and is at
Fishkill Correctional Facility, in
Dutchess County, N.Y.
The lawyers for the four
men say church staff, including
clergy, knew about Mr. Ser-
rano’s conduct and didn’t take
action.
From 2003 through 2009,
the victims’ lawyers say, Mr.
Serrano abused the four boys,
who at the time were between
the ages of 8 and 12 years old.
The boys attended St. Lucy-St.
Patrick, the lawyers said.
They said the abuse hap-
pened in the church, at Mr.
Serrano’s nearby apartment
and at an after-school pro-
gram.
In a ruling in one of the
cases that was part of the set-
tlement, Judge Loren Baily-
Schiffman, of state Supreme
us l,
Court in Brooklyn, wrote that
church staff were required to
al a
e
have received training about
signs of sexual abuse.
“The Church’s attempt to
ci on
minimize the fact that Serrano
was caught in the Church office
kissing an eight or nine year
old unidentified boy as merely
an ‘inappropriate embrace and
er rs
a peck on the lips’ demon-
strates a complete disregard of
the training that [the pastor]
was required to and did partic-
m e
ipate in,” the judge said.
—Ian Lovett
contributed to this article.
m rp
co Fo
n-
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Charlotte
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U.S. NEWS
ALL WET: Nacogdoches Firefighter Cliff Berry used a fire extinguisher in a ritual inauguration of the department’s latest vehicle Tuesday.
SUPREME COURT
Dark-Money Ruling
To Stand for Now
on Dark-money groups will be
required to disclose the identi-
ties of some anonymous donors
after the U.S. Supreme Court re-
fused to stop a lower court’s rul-
ing from taking effect.
Crossroads GPS, a nonprofit
Republican group, asked the high
court to put the decision on hold
while the case is appealed, but
the justices declined Tuesday.
The ruling applies to nonprof-
its that give money to super
PACs for advertising that sup-
ports or opposes a specific fed-
eral candidate.
It is called an “independent
expenditure.” Now donors giving
more than $200 to nonprofits
“for the purpose of furthering an
independent expenditure” have
to be disclosed to the Federal
Election Commission.
—Associated Press
Wages Are
Outpaced
By Benefits
Continued from Page One
sum payments that many large
companies, including AT&T Inc.
and Comcast Corp., gave em-
ployees after Congress ap-
proved a package of tax cuts
late last year. After the tax cut,
many employers, such as South-
west Airlines Co. and American
Airlines Group Inc., offered bo-
nuses but not wage increases.
Southwest said modifying
wages would have required ne-
gotiating with its union. Ameri-
can didn’t respond to a request
for comment on its decision.
Bonuses are closely tied to
corporate profits, and while
the tax cuts improved bottom
lines for many companies,
profits have been growing at a
strong clip for several years,
compensation experts say.
Employers have added jobs
for 95 straight months and the
number of job openings has ex-
ceeded the number of jobless
people looking for work.
In such a tight labor mar-
ket—last month’s 3.9% unem-
ployment rate is just above an
18-year low—using bonuses to
recruit and retain workers has
become especially common in
industries such as nursing and
logistics, where workers can
easily switch employers.
For instance, 90% of em-
ployers offered sign-on bo-
nuses for some physician assis-
tants and nurse practitioners
last year, up from 34% five
years prior, according to data
from Sullivan, Cotter & Associ-
ates, a health-care consulting
company. Union Pacific Corp.,
meanwhile, is dangling bo-
nuses as high as $25,000 for
workers such as diesel electri-
cians and train crew members.
The payments allow compa-
nies to be more strategic in
their spending, said Oliver
Cooke, executive director at fi-
nancial-services recruiter Selby
Jennings. “Rather than say
we’ll raise base salaries across
U.S. WATCH
LOS ANGELES
City Moves Toward
Ban on Fur Products
Los Angeles, one of the
world’s major fashion centers, is
taking steps to ban the sale of
new fur products, a move that
would make it the largest city in
the U.S. to do so.
A proposal to ban the sale of
fur products advanced in the
City Council on Tuesday. The
council voted unanimously to di-
rect the city attorney to draft an
ordinance that will prohibit the
manufacture and sale of new fur
products. The ordinance must be
presented to the council at a fu-
ture date for final approval.
“This is something that is not
just a good legislative win, it’s a
moral win,” Councilman Bob Blu-
menfield said. “We feel like we’re
evolving as a city as people to
stop this kind of unnecessary
cruelty.”
—Associated Press
the entire business and have
that fixed cost, you might be
able to pick out 10, 50 or 100
people who are deemed strate-
gically important,” he said.
The shift toward one-time
bonuses from sustained wage
increases is less favorable for
workers, said Fatih Guvenen,
economics professor at the
University of Minnesota.
“Bonuses are never guaran-
teed,” he said.
All this has happened as
workers’ earnings have
trended sharply downward. In
1968, for example, the average
25-year-old male employee was
making $35,000 a year, ad-
justed for inflation to 2013 dol-
lars, Mr. Guvenen’s research
found. By contrast in 2011, that
figure for 25-year-old male em-
ployees was closer to $25,000
in 2013 dollars. “This has oc-
curred even as the economy
has been growing,” he said.
Natalie Putnam, chief com-
mercial officer at Verst Logis-
tics, said the Kentucky-based
warehouse, packaging and ship-
ping company gave $500 bo-
nuses after the tax cut to about
450 employees, including driv-
ers and administrators. It also
CORRECTIONS  AMPLIFICATIONS
The Trump administration
Monday announced plans to im-
pose new duties on $200 billion
in Chinese goods. In some edi-
tions Tuesday, a Page One article
about the administration’s plans
incorrectly referred in one in-
stance to $200 billion in duties.
Artist Wendell Castle was
born in Kansas. A Life & Arts
article Monday about the arts
outside of major markets in-
correctly said he was a Mis-
souri native.
About 10 million babies a
year world-wide are born not
breathing, and six million of
those need to be resuscitated.
A Journal Report article Mon-
day about infant care didn’t
specify that those figures were
world-wide.
Readers can alert The Wall Street Journal to any errors in news articles by
emailing wsjcontact@wsj.com or by calling 888-410-2667.
* *** THE WALL STREET JOURNAL.
SOUTH CAROLINA
.
Prosecutor Indicted
ly
Over Public Funds
The chief prosecutor for South
Carolina’s capital city of Columbia,
was indicted Tuesday on more
than two dozen charges related to
the alleged misspending of public
funds on trips to foreign locations
including the Netherlands and the
Galápagos Islands.
In documents released to news
reporters, federal prosecutors out-
lined 26 charges against Solicitor
Dan Johnson, including wire fraud,
mail fraud and theft of government
funds.
Gov. Henry McMaster’s spokes-
man confirmed Tuesday the gover-
nor would move to suspend Mr.
Johnson from office. Mr. Johnson, a
Democrat first elected in 2010, has
declined to answer specific ques-
tions about his travels but has said
he didn’t intend for public money
to be used for personal expenses.
—Associated Press
boosted wages for drivers by $2
to $4 an hour beginning in April
for recruiting reasons, not due
to tax-related savings, she said.
“There’s just not enough
drivers to go around; it’s a cri-
sis,” she said.
Frank VanderSloot, CEO of
wellness company Melaleuca
Inc., estimated his company is
saving a little less than $2 mil-
623
Number of U.S. employers giving
pay increases or better benefits.
lion a year as a result of the tax
cut, and has since raised wages
around 10% for 850 manufactur-
ing workers in Tennessee and
Idaho. The increases are neces-
sary to hire new workers and
retain existing ones, he said.
President Trump’s economic
advisers argued in a recent pa-
per that growth in overall
compensation is a better mea-
sure of how workers are faring
than wages alone.
A photo of Boston’s South
End neighborhood accompa-
nied a Journal Report article
Monday about the effects of
sound. The photo caption in-
correctly said it was the Ja-
maica Plain neighborhood.
Dexcom Inc.’s glucose mon-
itor uses some skin pricking: a
sensor inserted in the abdo-
men every 10 days. A Journal
Report article Monday about
wearable health monitors in-
correctly said the monitor uses
some finger pricking.
The median income in non-
Hispanic white households in
2017 totaled $68,145, according
to the U.S. Census Bureau. A
U.S. News article Thursday
about Hispanic household in-
come incorrectly said $86,145.
TIM MONZINGO/THE DAILY SENTINEL/ASSOCIATED PRESS
U.S. APPEALS COURT
Bartenders, Waiters
Win in Tip Fight
Restaurants must pay wait-
ers and bartenders minimum
wage when they are engaged in
tasks such as cleaning toilets
that are unrelated to their main
jobs and don’t offer tips, a di-
vided U.S. appeals court ruled.
At issue in the decision by an
11-judge panel of the Ninth U.S.
Circuit Court of Appeals in San
Francisco was a federal law that
allows an employer to pay work-
ers who receive tips as little as
$2.13 an hour as long as their
tips earn them minimum wage.
Employers can’t use that tip
credit when the workers are en-
gaged in unrelated tasks that
don’t pay tips, the panel ruled
9-2. Judge Richard Paez said tips
were intended as “a gift to the
server, as opposed to a cost-sav-
ing benefit to the employer.”
—Associated Press
As of this month, 623 U.S.
employers announced bonuses,
pay increases or better bene-
fits related to the tax law, the
White House Council of Eco-
nomic Advisers said Tuesday.
The bulk of those, 408, offered
a lump-sum payment.
About 100 firms raised
wages for their lowest-paid
workers, and 95 lifted wages
for other employees. Some
companies increased retire-
ment contributions, and some
took more than one of the ac-
tions. The council said more
than six million U.S. workers in
total have directly benefited
from the tax overhaul.
Some workers would rather
see a lasting bump in pay. Brian
Foor, a 34-year-old single fa-
ther working for Lowe’s Cos. in
Lumberton, N.C., said he got a
one-time bonus of about $225
after the tax cut. Mr. Foor, who
has worked at the store for
four years and makes about $12
an hour, said he appreciated
the lift, but said that his pay
hadn’t noticeably changed.
“I thought it would’ve
helped a little bit more,” he
said. “I’m getting by paycheck
to paycheck.”
THE WALL STREET JOURNAL
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 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.
THE WALL STREET JOURNAL.
Sun, Thanks
Lift a Weary
Rescue Team
BY ERIN AILWORTH
NEW BERN, N.C.—Army Na-
tional Guard Sgt. Alex Park
queued up some music as he
and his crew prepared to roll
out on their Monday mission in
this hurricane-ravaged city.
As their canvas-covered
transport truck began to
move, a song by Five Finger
Death Punch poured from a
portable speaker: “If I could
hold back the rain…”
“Really? How appropriate,”
Sgt. Nicholas Muhar said from
the commander’s seat.
They had arrived in New
Bern on Sept. 12, two days be-
fore Hurricane Florence made
landfall about 100 miles to the
south and inundated the Caro-
linas as she inched along at 3
miles an hour across both
states. In New Bern, the water
ripped through houses, peel-
ing away siding, breaking win-
dows, lifting floorboards and
tossing around furniture.
Some homes collapsed.
As part of the National
Guard’s 30th Armored Brigade
Combat Team, Sgts. Park and
Muhar, and Spc. Craig Need-
ham waded, sometimes chest
deep, through floodwaters to
rescue people stranded in
their homes.
They had to evacuate their
initial post, at the National
Guard’s armory in New Bern,
when Florence blew the roof
away.
“My pants weren’t dry for
like three to four days total,”
In North Carolina, Storm Creates a Housing Crunch
BY LAURA KUSISTO
Finding temporary housing
for thousands of North Caro-
linians displaced by Hurricane
Florence could prove more dif-
ficult than it was for those up-
rooted by other recent U.S.
storms and hurricanes.
That is because Florence’s
path blew through some of the
state’s smaller cities, where
much of the rental housing
stock is owned by mom-and-
pop landlords. Places like Wil-
mington and Fayetteville have
fewer than 1,500 empty apart-
ment units each, according to
apartment research firm Real-
Page Inc.
The figure is less than half
the number of vacant units in
a larger center like Charleston,
S.C. Houston, which was suf-
fering from a rental glut be-
fore Hurricane Harvey hit last
year, had some 70,000 avail-
FBI Pursues Better Grasp of Mass Killers
BY ZUSHA ELINSON
The Federal Bureau of In-
vestigation is embarking on an
effort to better understand the
psychology behind mass shoot-
ers, a sign of how pervasive
the tragedies have become.
The FBI has conducted a lim-
ited number of interviews with
perpetrators of mass killings in
an effort to find commonalities
in what motivated them to at-
tack. Now the Bureau is consid-
ering expanding that into a
broad-based study in which it
would interview numerous mass
Criminal Minds
The FBI previously reviewed the
case files of 63 mass shooters.
These are some of their findings.
Time spent planning
Less than
24 hours 12%
1-7 days 12
8-30 days 15
1-2 months
3-5 months
6-12 months 9 Unknown 21
13-24 months 9 on social media about their in-
Victims
37%
27
Random Targeted
Note: Figures may not add up to 100% due to rounding.
Source: FBI
Sgt. Muhar said as he recalled
one rescue effort, where he
helped carry a young child
from her family’s flooding
home in a housing develop-
ment.
As the waters have receded,
the team has knocked on
doors, checking on vulnerable
residents and warning them
there was more rain and flood-
ing predicted.
On Monday, they used their
truck—a Light Medium Tactical
Vehicle, or LMTV—to haul pal-
lets of bottled water to Temple
Baptist Church, where volun-
teers had set up a meal line.
The cab of the truck was
crammed with their gear.
“As you can see, we basi-
cally live out of this LMTV,”
Sgt. Park said as the team went
to pick up their first cargo.
They have done it all with
just four or five hours of sleep
snatched here and there—often
on the floor of the city’s main
fire station. At least one shift
stretched 28 hours.
As Sgt. Park navigated the
truck out of the church park-
ing lot Monday, he noticed a
mother pushing a stroller with
four children trailing behind
her. One of them, a girl—
maybe 6 or 7 years old—
caught his eye. No smile. Blank
face.
“We’ve seen everything,
been in the water pulling peo-
us l,
ple out, but just that moment
right there it hit me,“ he said,
al a
e
pausing. “You could just tell
the sadness on their faces.”
ci on
er rs
able units just before the
storm. Fewer available units in
North Carolina could lead to a
severe apartment crunch.
m e
Making matters worse,
much of the rental inventory
in places like Wilmington and
m rp
Fayetteville is in single-family
homes, analysts say. This type
of housing is more vulnerable
to storm damage than higher-
rise apartment complexes.
co Fo
“A lot of the cities that
were flooded are smaller and
less dense,” said Ric Campo,
chairman and chief executive
of Camden Property Trust,
which owns 21 multifamily
properties in Charlotte and
Raleigh. “They just don’t have
the apartment inventory.”
Cindy Clare, chief operating
officer for Greensboro-based
Bell Partners Inc., said it is
difficult to assess the damage
to the company’s four proper-
n-
ties in the Wilmington area
no
shooters and look for patterns.
“We’re definitely missing a
piece of the puzzle through
the offenders’ eyes,” said
Sarah Craun, research coordi-
nator with the FBI’s Behavioral
Analysis Unit.
The potential mass-shooter
study would be similar to prior
research the FBI and Secret
Service have conducted into
serial killers, school shooters
and assassins. It would likely
take several years to complete.
The number of offenders inter-
viewed for those studies
ranged from 10 to 36. The FBI
Primary grievance
Interpersonal 33%
26
18
Employment 16
37
Other 10
Both
U.S. NEWS
Sgt. Nicholas Muhar, left, and Spc. Craig Needham unload ready-to-eat meals for residents of hurricane-ravaged New Bern, N.C.
Flooding to Plague
State for Days
While some parts of North
Carolina saw blue skies on
Tuesday, flooding will remain a
problem in coming days as the
rain dumped by Florence
makes its way from the state’s
swollen tributaries and rivers
to the Atlantic, the National
on The team continued to haul
water, then MREs, wherever
they were told there was need.
Overhead, the sun began to
peek through still-hovering
storm clouds.
As they went to refuel that
afternoon, the men found
themselves near the site of
because all roads into the area
are closed and most of the
properties still don’t have
electricity.
The company’s properties,
which are a combination of
low-rise garden apartments
and mid-rise elevator buildings,
experienced minor flooding
and one lost part of its roof.
Ms. Clare said it would be
some days before she can fully
assess the damage, which
could grow worse if there is
more flooding in the area and
if the electricity remains off,
allowing mold to grow in hot,
humid conditions.
Hurricanes tend to be bad
news for the for-sale housing
market in the weeks after a big
storm, leading to slower sales
and more borrowers falling be-
hind on their mortgages. But
for landlords whose properties
survive with little or no dam-
age, disasters can be a boon.
declined to say how many mass
shooters it hoped to interview.
Four of the five deadliest
mass shootings in modern U.S.
history have taken place since
2012, including last year’s Oct.
1 massacre in Las Vegas that
killed 58 concertgoers.
The 30 active-shooter inci-
dents in 2017 and the 138 peo-
ple killed were both the high-
est totals since the FBI began
keeping track in 2000, though
they make up a tiny fraction of
the nation’s total homicides.
The seeming randomness of
the attacks often baffles the
Adverse actions against the shooter
Academic
Government 3 Financial
action 3 acteristics of attackers.
5
Domestic Hate Ideology/
3 crime extremism
3 3
THE WALL STREET JOURNAL.
Wednesday, September 19, 2018 | A3
VEASEY CONWAY FOR THE WALL STREET JOURNAL
Muhar and Spc. Needham com-
Weather Service warmed. on the North Carolina coast early ing back up the street with the
FEMA Administrator Brock Friday, has been blamed for at truck. The water was just be-
Long toured an emergency re- least 34 deaths in the region, in- low the vehicle’s tailgate.
sponse center in Wilmington on cluding 27 in North Carolina. “No matter how hard-
Tuesday with North Carolina Gov. By late Tuesday, about headed I am, they were not
Roy Cooper. Mr. Long assured 288,000 power customers in going to leave us,” Mr. Thomas
county commissioners and other North Carolina were still offline. said.
local elected officials that FEMA More than 15,000 people in the On Monday, storm debris
was ready to come to their aid, state have sought refuge in lay in piles around the cul-de-
after being unable to reach the shelters, and many more have sac—broken boards, bent win-
city for several days because of been staying with family or in dow screens, a television,
.
rain and flooded roads. hotels, the governor said. couch cushions.
ly
Florence, which made landfall —Valerie Bauerlein Back at the Thomas’s house,
the family was happy to see
the National Guard team that
their first Florence rescue, a said, ‘We’re ready to ride it rescued them.
cul-de-sac on the edge of the out.’ ” “May God bless your life
Neuse River. There, they had But as the water continued and your family, too,” Mr.
found a family attempting to to rise, Mr. Thomas said his Thomas told Sgt. Park. “Thank
weather Florence even as the family’s increasing fear con- you for your service.”
river surrounded their raised- vinced him they needed to go. Back at the truck, Sgt. Park
up house. As the family attempted to and the others took a moment.
“I battled them,” recalled wade to safety 20 minutes “It makes it all worth it,” he
Jesse Thomas, 42 years old. “I later, they saw Sgts. Park and said.
After Harvey, Houston’s va-
cancy rate fell to 5.8% in the Room for Rent
fourth quarter from 7.3% in Hurricane Florence could create a shortage of rental units
third. It inched back up to 6.2% in impacted markets, such as Fayetteville and Wilmington.
in the second quarter of this
year, according to RealPage. Vacancy rate
The apartment vacancy rate
Wilmington, NC 6.6%
in Wilmington is 6.6% with an-
nual rent growth of 2.3%. That Columbia, SC 6.3
makes it slightly weaker than Charleston, SC 6.1
the national market, where the
Fayetteville, NC 5.8
vacancy rate is 4.5% and an-
nual rent growth is 2.5%, ac- Myrtle Beach, SC 5.6
cording to RealPage. U.S. 4.5
The storm is likely to push
that vacancy rate down, as Annual rent growth
some units may be destroyed
Myrtle Beach, SC 6.8%
and others are likely to be
filled by homeowners whose Fayetteville, NC 4.7
properties are destroyed. Wilmington, NC 2.3
John Pawlowski, an analyst
at Green Street Advisors, said Columbia, SC 2.2
that by avoiding the major cit- Charleston, SC 1.6
ies, Florence also largely
U.S. 2.5
spared the portfolios of insti-
tutional apartment and single- Note: Data as of mid-year 2018
family rental owners. Source: RealPage THE WALL STREET JOURNAL.
police and the public. Under-
standing what makes these
types of killers tick could re-
move some of the mystery and
help identify potential attack-
ers beforehand, law-enforce-
ment and security officials say.
“People are hungry for any-
thing that can prevent this or
predict this or deal with it
better,” said Gregory Vecchi,
an assistant professor of crim-
inal justice at Missouri West-
ern State University and for-
mer chief of the FBI unit now
known as Behavioral Analysis.
While the FBI has never
conducted a study based on
interviews with mass shooters,
this summer it released the
findings from a review of the
case files of 63 such perpetra-
tors that focused on the char-
Only one-quarter had been
diagnosed with a mental illness,
and just 5% had been convicted
of a violent felony, according to
the study. Shooters frequently LU M I N O R S U B M E R S I B L E 1 9 50 CA R B OT EC H T M
3 D AYS A U TO M AT I C - 4 7 M M
nursed grievances, had suicidal ( R E F. 6 1 6 )
thoughts, spent a week or more
planning the attack and usually
let someone know in person or
tent beforehand, according to
the case-file review.
A study based on interviews
with offenders could be partic-
ularly helpful in cases where
the motive wasn’t apparent in
their observable behavior, said
700 FIFTH AVENUE & 55TH STREET.
James Silver, a co-author of NEW YORK. TEL. 212 397 9000
the report and an assistant
professor of criminal justice at
Worcester State University.
 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.
A4 | Wednesday, September 19, 2018
Feinstein Plays Key Role in Accusation
Senator who first ran
after the Hill-Thomas
hearings is at center
of a similar drama
BY NATALIE ANDREWS
AND SIOBHAN HUGHES
WASHINGTON—Sen. Dianne
Feinstein’s moves that teed up
a public airing of allegations
of sexual misconduct by Su-
preme Court nominee Brett
Kavanaugh have drawn the ire
of Republicans, who accuse
the California Democrat of
seeking to delay the nomina-
tion of a jurist she opposes,
and the support of Democrats,
who say she was trying to en-
sure a constituent’s confiden-
tiality on an issue that de-
served scrutiny.
Mrs. Feinstein told report-
ers Tuesday that the accusa-
tion by Palo Alto University
professor Christine Blasey
Ford that Judge Kavanaugh
sexually abused her when they
were teenagers “ought to be
looked at seriously, it ought to
be investigated.” She added:
“This is an incident that can
change a woman’s life.” Judge
Kavanaugh has denied the al-
legations.
Senate Majority Leader
Mitch McConnell (R., Ky.) said
Tuesday that Mrs. Feinstein’s
withholding of information
about the allegations until the
end of the confirmation pro-
cess was deliberate. “It’s
pretty obvious this is all about
delaying the process,” he said.
Mrs. Feinstein set in motion
the ultimate disclosure of Dr.
Ford’s charges, leading to a
planned hearing Monday and
Hearing
Plans Are
Roiled
Continued from Page One
“is fully informed before con-
ducting any hearing or making
any decisions,” attorneys for
Dr. Ford wrote in the letter.
Mr. Grassley indicated the
committee wasn’t willing to
wait for a full FBI investiga-
tion of Dr. Ford’s allegations.
“Dr. Ford’s testimony would
reflect her personal knowledge
and memory of events. Nothing
the FBI or any other investiga-
tor does would have any bear-
ing on what Dr. Ford tells the
committee, so there is no rea-
son for any further delay,” Mr.
Grassley said Tuesday night.
Dr. Ford’s attorneys said
she remained open to “reason-
able steps” on cooperating
with the committee, but her
stance left uncertain whether
Judge Kavanaugh would still
testify as planned on Monday,
no
Democratic Sen. Dianne Feinstein talked about sexual-abuse accusations against Supreme Court nominee Brett Kavanaugh on Tuesday.
complicating Judge Ka-
vanaugh’s nomination before
senators vote.
What began in late July, ac-
cording to Mrs. Feinstein, as
an effort to protect a constitu-
ent’s confidentiality has be-
come a public spectacle, for
which she has faced criticism
from Republicans and the
White House for what they see
as an effort to delay and im-
peril the nomination of a tal-
ented jurist.
By Tuesday night, Dr. Ford’s
lawyers said that “an FBI in-
us l,
al a
e
ci on
er rs
m e
Republicans said they want to move forward with Brett Kavanaugh’s nomination to the Supreme Court.
m rp
and whether the Judiciary
Committee would hold a vote
on his confirmation without
hearing from Dr. Ford.
co Fo
GOP lawmakers had said
they viewed Monday’s hearing
as her opportunity to present
her story and also offered to
conduct a private hearing.
Sen. Bob Corker (R., Tenn.),
who pushed for a delay for Dr.
Ford to testify, said late Tues-
day that the judiciary panel
had taken steps to ensure Dr.
Ford could be heard and the
Senate should move forward.
“Republicans extended a
hand in good faith. If we don’t
n-
hear from both sides on Mon-
P W L C 10 11 12
vestigation of the incident
should be the first step in ad-
dressing her allegations,” or
before any hearing. The state-
ment, in a letter to Senate Ju-
diciary Committee Chairman
Chuck Grassley (R., Iowa),
threw the Monday hearing
into question. Judge Ka-
vanaugh has been set to ap-
pear before the panel to de-
onfend himself from the charge
and try to set his nomination
back on course.
Mrs. Feinstein learned of
Dr. Ford’s allegations in a July
day, let’s vote,” he tweeted
late Tuesday.
Utah Sen. Orrin Hatch, a Re-
publican on the Judiciary Com-
mittee, tweeted after the letter
became public that “we should
proceed as planned” with con-
firming Judge Kavanaugh.
The White House was sur-
prised by Dr. Ford’s request
for a full investigation, an offi-
cial said Tuesday night.
At minimum, the request
means the hearing set for Mon-
day “is not going to look the way
it was designed to look initially,”
the official said. With Dr. Ford
now seeking an investigation be-
fore any testimony, she is “kind
CAMPAIGN WIRE
Democrat Leads in
Arizona, Poll Shows
If Democrats can hold all 10
Senate seats in states that
President Trump won in 2016—
highly competitive races that
many polls show to be close—
they’ll need to pick up at least
two additional seats to win con-
trol of the chamber.
A new poll from CNN/SSRS
shows Arizona could be one of
them. Democratic Rep. Kyrsten
Sinema leads Republican Rep.
Martha McSally 50% to 43%
among likely Arizona voters in
the race to succeed Republican
Sen. Jeff Flake, who is retiring.
The poll had a margin of error of
plus or minus 4.3 percentage
points.
Democrats also hope to un-
seat Nevada Sen. Dean Heller,
the only Senate Republican run-
ning in a state Hillary Clinton
won in 2016. In Tennessee, for-
mer Democratic Gov. Phil Brede-
sen is hoping to best Republican
Rep. Marsha Blackburn to win
the seat Sen. Bob Corker, a Re-
publican, is vacating.
But in Texas, GOP Sen. Ted
Cruz looks tough to beat. A new
Quinnipiac University poll shows
him leading Democratic Rep.
Beto O’Rourke 54% to 45%
among likely voters. The poll has
a margin of error of plus or mi-
nus 4.1 percentage points. Mr.
O’Rourke’s campaign has gained
national attention, but a Demo-
crat hasn’t held statewide office
in Texas since 1998.
—Andrew Duehren
H T G K B F A M 1 2 3 4 5 6
U.S. NEWS
30 letter that also requested
confidentiality, according to
Rep. Anna Eshoo (D., Calif.).
Dr. Ford first contacted Ms.
Eshoo, who encouraged her to
reach out to Mrs. Feinstein. Ms.
Eshoo also called the senator
to discuss the matter, and Mrs.
Feinstein asked that the allega-
tions be described in a letter.
The letter was sent to Ms. Es-
hoo’s office and hand-delivered
to Mrs. Feinstein’s office.
Once they received it, Mrs.
Feinstein’s aides approached
the Senate Ethics Committee
of walking back on” the initial
stance that she wanted to testify
before the committee and tell
senators her allegations directly,
the White House official said.
President Trump tweeted
about the Supreme Court late
Tuesday without referring to
Judge Kavanaugh or Dr. Ford.
“The Supreme Court is one of
the main reasons I got elected
President,” Mr. Trump tweeted.
“I hope Republican Voters, and
others, are watching, and study-
ing, the Democrats Playbook.”
GOP leaders had earlier
Tuesday dismissed the idea of
launching an FBI investigation
into the new allegations, say-
Companies Offer
Cybersecurity Tools
With election-security measures
stalled in Congress, free ser-
vices are emerging from compa-
nies offering to help political
candidates and campaigns pro-
tect themselves from cyber-
crimes.
Microsoft, Cloudflare and the
Synack have offered their ser-
vices to states or campaigns in
recent months, and now Syman-
tec joins the fray with a free
tool that will help candidates
and campaigns discover fraudu-
lent versions of their websites
Illegitimate versions of cam-
paign websites can be used to
harvest information about vot-
ers and spread disinformation
about the campaign.
—Andrew Duehren
In Brief ...
u National political groups
are ramping up spending as
the election enters the home-
stretch. Priorities USA Action
and House Majority PAC, two
Democratic super PACs, said
that they plan to spend more
than $10 million on digital ad-
vertising in 40 congressional
districts. The Congressional
Leadership Fund, a Republican
super PAC associated with
House Speaker Paul Ryan, is
investing $3 million to staff
field operations in 15 House
races.
7 8 9 O I X X ****** THE WALL STREET JOURNAL.
with Democrats on the com-
mittee, Mrs. Feinstein decided
to forward the letter to the
FBI in hopes of prompting an
investigation.
Dr. Ford then went public
with her story, first telling it
to the Washington Post.
Mrs. Feinstein said on Tues-
day that she didn’t regret for-
warding the letter.
The public debate unfolds
against the backdrop of the
#MeToo movement that has
exposed sexual abuse in many
sectors, including the journal-
ism and entertainment indus-
tries.
It also comes less than two
months before a hotly con-
tested midterm election and
less than two weeks before the
J. SCOTT APPLEWHITE/ASSOCIATED PRESS
start of a new Supreme Court
term.
Mrs. Feinstein herself is a
heavy favorite to win a sixth
Senate term and, at 85, remain
the oldest sitting senator.
She has said that she can
recall joining a crowd watch-
ing the Anita Hill hearings on
a television in London’s Heath-
row airport as a committee of
white men grilled an African-
American woman about her al-
to inquire about whether the legation that she had been
Judiciary panel could hire an sexually harassed.
independent, outside counsel Mrs. Feinstein has said
to evaluate the allegations, ac- those hearings influenced her
cording to Mrs. Feinstein’s first Senate bid, and her can-
spokesman. didacy was propelled by a
They were told the Rules backlash among women an-
.
Committee would have to ap- gered by the hostile treatment
ly
prove such a request, and the Ms. Hill received from the
Republican chairmen of that Senate Judiciary Committee in
panel and the Judiciary panel 1991 as she testified against
would have to sign off on the then-Supreme Court nominee
request—an action that would Clarence Thomas. Justice
have violated Dr. Ford’s desire Thomas denied the harass-
to remain anonymous. ment charges, and was nar-
On Sept. 12, after meeting rowly confirmed.
ing Judge Kavanaugh had al- fore the committee.
ready been thoroughly vetted.
“There have been multiple
Sen. Dianne Feinstein of Cal-
ifornia, the Judiciary Commit-
investigations. Judge Ka- tee’s top Democrat, who noti-
vanaugh has been through six
FBI investigations in the
fied the FBI of the allegations
last week, said a full investiga-
course of his lengthy public tion should be conducted.
JOSHUA ROBERTS/REUTERS
career,” Senate Majority Mitch “We should honor Dr. Blasey
McConnell (R., Ky.) said. Mr. Ford’s wishes and delay this
McConnell said the new alle- hearing,” Mrs. Feinstein said
gations would be addressed if Tuesday night. “A proper inves-
both Dr. Ford and Judge Ka- tigation must be completed,
vanaugh testified next week. witnesses interviewed, evi-
The FBI conducts back- dence reviewed and all sides
ground checks of nominees. A spoken to. Only then should the
spokesman for the Justice De- chairman set a hearing.”
partment said it “does not After aides briefed Mr.
make any judgment about the Trump on Monday, he signed
credibility or significance of onto an approach of letting
any allegation” and instead pro- Judge Kavanaugh take the lead
vides information to senators. in denying the accusation, a
Democrats, for their part, White House official said. Mr.
also had pushed back against Trump has uncharacteristically
the scheduled Monday hear- held his fire in denouncing Dr.
ing, saying that timetable was Ford, although on Tuesday he
rushed. They also pressed for cast his sympathy toward his
an FBI investigation, and for high-court nominee.
more witnesses to be heard, “I feel so badly for him,” the
including the friend of Judge president said of Judge Ka-
Kavanaugh, Mark Judge, who vanaugh at a White House ap-
Dr. Ford alleged was in the pearance. “This is not a man
room at the time. Republicans who deserves this.”
have resisted his inclusion. Mr. —Byron Tau
Judge’s lawyer said Tuesday and Sadie Gurman
he didn’t want to testify be- contributed to this article.
Some VA Hospitals
Show Improvement
BY BEN KESLING ures that weren’t necessarily
predicted by SAIL,” said Rich-
Improvements at the na- ard Stone, the top VA health-
tion’s veterans hospitals over care official.
the past year are allowing offi- Hospital ratings have been
cials to remove a handful of the showing steady improvement
poorest-performing centers since the first public release of
from a list of high-risk facilities, the data in 2015.
according to an assessment to Dr. Stone said greater
be released this week by the transparency had fueled im-
Department of Veterans Affairs. provements around the VA,
Those five hospitals had the nation’s largest medical
been part of a program that system. “When you make
floods poorly performing facili- these things public, you get
ties with expertise and re- pressure, you get scrutiny, you
sources, and the improvements get oversight,” he said.
are seen by VA officials and VA medical centers are
physicians as a measure of suc- rated on a scale of one to five
cess. Ten other high-risk hospi- stars. Of the 146 medical cen-
tals continue to languish among ters, 19 had five-star ratings
the lowest-ranked facilities and and 15 were given one-star
will remain the target of im- ratings. Earlier this year, VA
provement efforts, officials said. officials began transferring
Of 146 VA medical centers
nationwide, 103 recorded im-
personnel and resources from
some of the healthier centers
provements in service quality to the high-risk centers.
and seven suffered declines. As a result, five of the 15
Quality is measured according high-risk centers—in Dublin,
to death rates, complications, Ga.; Harlingen, Texas; Nash-
patient satisfaction, overall ef- ville, Tenn.; Roseburg, Ore.; and
ficiency and physician capacity Denver—improved, officials
under a system called Strate- said, rising out of the high-risk
gic Analytics for Improvement category. The latest star rat-
and Learning, or SAIL. ings have yet to be released.
While VA officials consider Centers in Hampton, Va.;
the improvements a step in Washington, D.C.; Big Spring,
the right direction, they said Texas; El Paso, Texas; Jackson,
the assessments don’t always Miss; Loma Linda, Calif.; Mem-
foreshadow quality improve- phis, Tenn.; Murfreesboro,
ments or declines. Tenn.; Phoenix; and Walla
“You can look around the Walla, Wash., remained in the
system and you can find fail- high-risk category.
 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.

THE WALL STREET JOURNAL. Wednesday, September 19, 2018 | A5

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 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.
A6 | Wednesday, September 19, 2018
Companies Press to Keep Canada in Nafta
U.S. business interests
want to ensure Ottawa
stays in a new trade
pact under discussion
BY WILLIAM MAULDIN
AND PAUL VIEIRA
U.S. business groups urged
the Trump administration to
keep Canada in an updated
North American Free Trade
Agreement alongside Mexico.
“It would be unacceptable
to sideline Canada, our largest
export market in the world,”
wrote the heads of the U.S.
Chamber of Commerce, the
Business Roundtable and the
National Association of Manu-
facturers in a letter to U.S.
Trade Representative Robert
Lighthizer.
The business groups also
called Tuesday for negotiators
to build in strong enforcement
provisions to hold all three
countries to account; avoid
sunset clauses that could lead
to the termination of the agree-
ment; and exclude language al-
lowing for new tariffs on the
auto industry or other sectors.
The letter comes as U.S.
and Mexican officials seek to
pressure Canada to make con-
cessions and join in a three-
way agreement—or be left out
of a new two-nation pact.
The Trump administration
notified Congress last month
that it had struck a deal with
Mexico and would formally
sign a new version of Nafta
as early as late November.
Canada would join the pact
“if it is willing, in a timely
manner,” President Trump
U.S. Orders Chinese Outlets
To Join Foreign-Agents List
BY KATE O’KEEFFE
AND ARUNA VISWANATHA
The Justice Department or-
dered two leading Chinese
state-run media organizations
to register as foreign agents,
according to people familiar
with the matter, as U.S. offi-
cials ramp up efforts to com-
bat foreign influence opera-
tions and toughen their stance
on a variety of China policies.
The DOJ in recent weeks
told Xinhua News Agency and
China Global Television Net-
work—known as CGTN now
and earlier as CCTV—to regis-
ter under a previously obscure
foreign lobbying law that
gained prominence when it
was used in the past year
against associates of President
Trump, including Mr. Trump’s
former campaign manager,
Paul Manafort, the people
said.
The DOJ order comes as
Washington and Beijing are in-
volved in an escalating trade
conflict, with China announc-
no
ing on Tuesday it would retali-
ate for the U.S. tariffs unveiled
Monday on $200 billion in
Chinese goods.
In memory of our beloved
friend and the co-founder
Robert J. Lanigan
We are forever grateful
for his vision, leadership
A milk deliveryman in Montreal. U.S. negotiators are seeking to boost American farmers’ access to the Canadian market in Nafta talks.
told congressional leaders.
Any Nafta overhaul would
require a majority vote in sup-
port of the accord in the
House and Senate. Republican
lawmakers usually take into
account the views of business
groups on trade issues, while
many Democrats often take
their cues from labor groups.
In recent weeks, U.S. labor
groups have aligned with busi- on with Mexico alone, since any
ness groups in expressing a
strong preference for includ-
ing Canada.
us l,
al a
e
ci on
Xinhua, CGTN and the Chi-
er rs
nese Embassy in Washington
didn’t respond to a request to
comment.
Prosecutors have recently
m e
scrutinized the U.S. activity of a
number of foreign media
groups, after U.S. intelligence
m rp
described two Russian govern-
ment-backed outlets as partici-
pants in the Kremlin’s efforts to
interfere in the 2016 U.S. presi-
dential election. Chinese state
co Fo
Xinhua and CGTN
must register as part
of U.S. moves to get
tougher on Beijing.
media hasn’t so far been ac-
cused of such activity; generally,
the outlets exalt China while
n-
criticizing the U.S. and others.
In the past year, U.S. affili-
ates of two Russian outlets,
RT, a television network, and
Sputnik, which produces radio
shows and online articles, reg-
istered in the U.S. under the
Foreign Agents Registration
of our firm.
1928 – 2018
and mentorship.
U.S. NEWS
“On this one, we happen to
agree,” said Celeste Drake, a
trade expert at the AFL-CIO
union federation with affiliates
in Canada. “We want the rules
rewritten, but that doesn’t
mean to exclude anyone.”
The upshot is that Canadian
officials see limitations in the
Trump administration’s latest
pressure tactic of proceeding
deal without Canada would
face strong domestic opposi-
tion in the U.S.
Act. Both denied acting as
agents of a foreign govern-
ment and said they registered
only because of a Justice De-
partment directive.
Such forced registrations
are more than symbolic. After
its registration, RT lost con-
gressional press credentials,
which limited its access to
lawmakers and other U.S. offi-
cials as members of the media.
Xinhua and CGTN also have
such credentials, according to
a recent congressional list.
The scrutiny of foreign me-
dia firms highlights tension be-
tween First Amendment free-
speech activists, who say the
Justice Department moves are
based on an inappropriate dis-
tinction between propaganda
and journalism, and national
security officials, who are con-
cerned about foreign state-
funded media being used to in-
fluence U.S. public opinion.
The issue has caught the at-
tention of Congress. In a Janu-
ary letter, Sens. Marco Rubio
(R., Fla.), Patrick Leahy (D.,
Vt.) and others asked Attorney
General Jeff Sessions to exam-
ine registration requirements
for Xinhua and CGTN.
Canadian Foreign Minister
Chrystia Freeland was set to
arrive in Washington late
Tuesday and meet with Mr.
Lighthizer on Wednesday, of-
ficials said. On Monday, Ms.
Freeland said she had been in
touch with Mr. Lighthizer, al-
though some conversations
“are better to have face to
face.”
Ms. Freeland and other of-
ficials have repeatedly skirted
questions about meeting an
end-of-September deadline,
China’s state-run CGTN, formerly CCTV, was launched as a global network in Beijing in 2016.
The senators cited a Decem-
ber National Endowment for
Democracy report that said
China and Russia have been ex-
ploiting a “glaring asymmetry”
by raising “barriers to external
political and cultural influence
at home while simultaneously
taking advantage of the open-
ness of democratic systems
abroad.” As such, the senators
wrote, “A sensible step for the
United States government to
take is appropriately enforcing
existing laws, such as FARA,
designed to protect against
just such concerns.”
The Justice Department
told the senators it couldn’t
comment on any potential in-
vestigations and wrote that
Senate Passes Spending Measure
BY NATALIE ANDREWS
WASHINGTON—The Senate
passed its second appropria-
tions bill in five days on Tues-
day, boosting spending for the
next fiscal year for the De-
fense Department, medical re-
search and the opioid crisis,
and funding other depart-
ments through Dec. 7 to avoid
a government shutdown be-
fore the midterm elections.
In a 93-7 vote, the Senate
approved the package of bills
known as a “minibus,” in con-
trast to Congress’s usual use
of “omnibus” spending legisla-
tion. The House is expected to
take it up next week, accord-
ing to a Republican aide. Law-
makers from both chambers
worked jointly on the bill and
announced it last week.
The bill funds the depart-
ments of Defense, Education,
Labor, Health and Human Ser-
vices and related agencies and
makes up much of discretionary
spending that Congress appro-
priates. It is the first time in 22
years that the bills are on track
to make it to the president’s
desk by the end of the year.
“These milestones may
sound like inside baseball, but
what they signify is a Senate
that is getting its appropria-
tions process back on track,”
THE WALL STREET JOURNAL.
Trudeau over Twitter after
the Group of Seven summit in
Quebec. The two leaders may
have the chance to address
trade concerns including
Nafta next week at the United
Nations General Assembly. So
far a meeting hasn’t been
scheduled, officials said.
Some lawmakers back Mr.
Trump’s no-holds-barred ap-
proach to dealing with Can-
ada and other trading part-
ners. “Mexico negotiated in
good faith and in a timely
manner, and if Canada does
not cooperate in the negotia-
tions, Congress will have no
choice but to consider options
about how best to move for-
ward,” Rep. Steve Scalise (R.,
La.) said.
In any revised version of
Nafta, Mr. Trudeau has in-
sisted on keeping a system
CHRISTINNE MUSCHI/REUTERS
contained in the original
Nafta that allows member
countries to appeal to arbitra-
tion boards to overturn tariffs
imposed on allegedly dumped
or subsidized goods. Mr. Ligh-
thizer has proposed abolish-
ing it.
For his part, Mr. Trump
has criticized Canada for a
adding that their focus is system that protects its dairy
about reaching a deal that is farmers. U.S. negotiators are
acceptable to Canadians. seeking to boost American
Canadian Prime Minister farmers’ access to the Cana-
Justin Trudeau said Monday dian market to at least the
night that the U.S. and Can- level agreed upon in 2015 for
ada “are not there yet” on an the Trans-Pacific Partnership,
.
agreement. “We might be the sprawling trade agree-
ly
days or weeks away now. It ment that Mr. Trump aban-
might not be,” Mr. Trudeau doned before it got a vote in
said in a broadcast interview Congress.
with Maclean’s magazine. “They cannot continue to
U.S. tensions with Canada charge us 300% for dairy
were magnified in June, when products,” Mr. Trump said
Mr. Trump attacked Mr. Tuesday.
XINHUA/ZUMA PRESS
not all state-controlled media broadly, targeting Mr.
would necessarily be required Manafort’s Washington work on
to register as foreign agents, behalf of Ukrainian politicians
such as those that run news between 2006 through 2015,
bureaus in the U.S. to report and work on behalf of Turkey
on events for an audience in by Mr. Trump’s former national
their home countries. security adviser, Michael Flynn.
“Unless there is an effort by Both men admitted to filing
the state-controlled media or- false FARA statements as part
ganization to use its reporting of plea deals they reached with
in the United States to target an special counsel Robert Mueller.
audience here for purposes of The FARA law, passed in
perception management or to 1938 to expose covert Nazi-in-
influence U.S. policy, there fluence campaigns in the U.S.,
would probably be no obligation requires anyone doing lobby-
for it to register under FARA,” a ing or public-relations work
DOJ official wrote in a letter for a foreign entity to register
dated Feb. 20 that was reviewed and file periodic updates with
by The Wall Street Journal. the Justice Department.
Prosecutors have recently —Yang Jie
begun wielding FARA more contributed to this article.
said Senate Majority Leader The bill defies Mr. Trump’s
Mitch McConnell (R., Ky.) on
the chamber’s floor as he en-
call to cut various health, edu-
cation and labor programs. In-
couraged lawmakers to sup- stead, it increases funds for the
port the bill. National Institutes of Health for
Last week, Congress passed medical research. It includes an
an initial package of bills that increase of $100, or 1.6%, in the
includes funding for the En- 2018-19 academic year maxi-
ergy Department, Veterans Af- mum for Pell grants, which are
fairs and the legislative branch federal financial aid earmarked
of government. for the neediest college stu-
Funding for departments dents.
that haven’t yet been funded It also includes $725 million
through the appropriations for community block grants,
process, such as the Depart- which is $10 million more than
ment of Homeland Security, the amount for fiscal 2018 and
was extended through a so- which Mr. Trump’s budget pro-
called continuing resolution posed eliminating. The program
until Dec. 7, effectively pushing has long been used by Congress
back fights that Republicans to help state and local govern-
want to avoid before the mid- ments recover from major di-
terms, such as President sasters, such as hurricanes.
Trump’s demand for funding To combat the opioid epi-
for a Mexico border wall. demic, the bill appropriates
Lawmakers also are still ne- $3.8 billion, an increase of $2.7
gotiating agreements on a third billion over 2017. Of that, $1.5
spending bill, to fund the de- billion will go to states for
partments of Interior, Treasury, grants. The Senate on Monday
Agriculture, Transportation, and passed broad, bipartisan legis-
Housing and Urban Develop- lation aimed at combating the
ment. Sen. Patrick Leahy (D., opioid epidemic through new
Vt.) said lawmakers remained research, treatment and help
hung up on policy differences. for families affected by addic-
“We are very close to an tion.
agreement,” he said. “We The bill gives $674.4 billion
should not delay this package to the Defense Department, up
over unrelated policy matters $19.8 billion from this year, and
that have no place on must- awards U.S. service members a
pass spending bills.” 2.6% pay raise.
 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.

THE WALL STREET JOURNAL. Wednesday, September 19, 2018 | A7

We make prescription opioids.

And we want to limit their use.

For more than 25 years, Purdue Pharma has developed opioid medications.
While opioid analgesics may help patients with acute and chronic pain when

.
other treatment options are inadequate, earlier this year we decided that

ly
our sales representatives will no longer promote opioids to prescribers.
on
We are acutely aware of the public health risks opioid analgesics can create,
even when taken as prescribed. And we are deeply concerned about the toll
us l,

the opioid crisis is having on individuals and communities across the nation,
al a

and as a company now led by a physician, we believe the country needs a

e

new approach to prescribing opioids.

ci on

This approach includes supporting patient access to multi-modal

pharmacologic and non-pharmacologic treatment options; ensuring opioids
er rs

are only used when alternative treatment options are inadequate; and
adopting public policies aimed at reducing addiction, abuse, diversion, and
m e

overdose related to opioids.

m rp

To help limit a patient’s unnecessary exposure to opioids and reduce the

number of unused opioids that might end up in the wrong hands, we support
co Fo

initiatives to limit initial opioid prescriptions to no more than seven days.

To help reduce prescription drug abuse and diversion, we advocate that

prescribers and pharmacists consult state Prescription Drug Monitoring
Program (PDMP) databases before writing or dispensing any opioid
prescription. Studies suggest that PDMPs can help reduce the number
of prescriptions written for opioids and that PDMP use is associated
with a reduction in pain medications received for nonmedical use from
n-

multiple doctors.1,2
no

To support communities that have been affected by the crisis, we’ve

provided funding to the National Sheriffs’ Association to help law
enforcement distribute the overdose rescue drug naloxone. In addition,
we’re helping to bring prescription abuse prevention education to high
school students across the country.

America’s opioid crisis is the result of multiple factors. We believe that all
stakeholders — healthcare leaders, drug manufacturers, policymakers,
and public health officials — need to come together to drive meaningful
solutions forward. While no single intervention alone will solve this crisis,
partnerships, determination, and innovative approaches are steps in the
right direction.

www.purduepharma.com

1
Bao Y, Pan Y, Taylor A. Prescription drug monitoring programs are associated with sustained reductions in opioid prescribing by
physicians. Health Affairs (Project Hope). 35(2016)1045–1051. https://www.ncbi.nlm.nih.gov/pmc/articles/PMC5336205/.
2
Ali MM, Dowd W, Classen T. Prescription drug monitoring programs, nonmedical use of prescription drugs, and heroin use:
evidence from the National Survey of Drug Use and Health. Addictive Behaviors. 69(2017)65–77.
 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.
A8 | Wednesday, September 19, 2018
Syria Downs Plane; Russia Blames Israel
While reacting to
Israeli raid, air defense
systems shoot Russian
reconnaissance craft
BY THOMAS GROVE
AND FELICIA SCHWARTZ
MOSCOW—Russia blamed
Israel for the loss of a recon-
naissance plane downed acci-
dentally by Syrian forces re-
acting to a raid by Israeli jet
fighters, but leaders of the
two countries quickly worked
on Tuesday to defuse further
tensions, underscoring the de-
sire of regional powers to pre-
vent escalation.
Moscow said that the Israe-
lis had given too little warning
of a strike by four F-16s over
Syrian airspace that aimed to
destroy Iranian targets there.
As a result, a Russian Il-20 air-
craft was downed overnight by
Syria’s semiautomated air de-
fense systems, killing 15 Rus-
sian service members on board.
Israeli Prime Minister Benja-
min Netanyahu, in a telephone
call with Russian President
Vladimir Putin, blamed Syrian
President Bashar al-Assad for
the downed plane, but ex-
pressed regret for the loss of
life, a statement from the
prime minister’s office said.
“Prime Minister Netanyahu
noted the importance of the
Russian Activist
Likely Poisoned
BY ANDREA THOMAS
BERLIN—A member of
Pussy Riot, a Russian punk
group that has drawn the
spotlight for its flamboyant
anti-Kremlin protests, was
likely poisoned with an un-
known substance, German
doctors said, the latest in a
string of similar cases involv-
ing critics of the Kremlin.
Pyotr Verzilov fell ill after
attending a court hearing on a
traffic violation last week in
Moscow. Several hours later,
his eyesight began deteriorat-
ing, followed by difficulties in
speaking and walking, fellow
activist Veronika Nikulshina
said. On Saturday, Mr. Ver-
zilov, who has Russian and Ca-
nadian passports, was brought
to Germany for treatment by a
German humanitarian group.
His symptoms make it
“highly plausible that a poi-
soning has taken place,” Kai-
Uwe Eckardt, a senior physi-
cian at Berlin’s Charité
hospital, said Tuesday. The
doctors haven’t been able to
identify the toxic substance,
he added.
no
Israeli deputy ambassador Keren Cohen-Gat, right, after meeting with Russian officials on Tuesday.
continued security coordina-
tion between Israel and Russia
that has managed to prevent
many casualties on both sides
in the last three years,” Mr.
Netanyahu’s office said.
Mr. Netanyahu offered to
send Israel’s Air Force Com-
mander to Moscow to deliver
information about the Israeli
military operation above Syria,
both countries said.
The quick efforts by Russian
and Israeli leaders to regain
diplomatic footing despite the
military incident illustrates the
relationship between Messrs.
Putin and Netanyahu, which
on
us l,
al a
e
During a press conference
in Berlin on Tuesday, Ms. Ni-
ci on
kulshina said she believed the
poisoning occurred during Mr.
Verzilov’s Moscow court ap-
pearance or in a nearby area.
Mr. Verzilov’s apparent poi-
er rs
soning adds to a number of sim-
ilar incidents involving oppo-
nents of the Putin government.
The British government has
m e
blamed Russia for the poison-
ing of a former Russian spy and
his daughter this year in Eng-
m rp
land. Opposition politician
Vladimir Kara-Murza was poi-
soned in 2015 and 2017 in what
he said was retribution for his
criticism of Russian President
co Fo
Vladimir Putin. Russia has de-
nied involvement in the inci-
dents and had no immediate
comment on Mr. Verzilov’s case.
Dr. Eckardt said on Tuesday
that while Mr. Verzilov re-
mained in critical condition,
he was expected to make a full
recovery.
Mr. Verzilov, a producer for
Pussy Riot, began his activism
as part of spontaneous public
performance art in the artists’
collective Voina, or War,
n-
known for anti-Kremlin stunts
WORLD NEWS
has grown stronger during the
Syrian conflict. The two lead-
ers have held regular meetings
over Syria, and Mr. Putin has
gained Mr. Netanyahu’s trust
by acknowledging Israel’s con-
cerns over the presence of Ira-
nian troops and its proxy mili-
tias there.
In Washington, Secretary of
State Mike Pompeo expressed
“sorrow” on behalf of the U.S.
for the deaths of the crew
members. “Yesterday’s unfor-
tunate incident reminds us of
the need to find permanent,
peaceful, and political resolu-
tions to the many overlapping
Anti-Kremlin activist Pyotr Verzilov, victim of a suspected poisoning, was transported to Berlin for medical treatment on Saturday.
such as throwing live cats at
McDonald’s Corp. employees
and painting a large phallus
under a drawbridge that, when
raised, faced the Federal Secu-
rity Service building.
Mr. Verzilov and Ms. Ni-
kulshina gained notoriety this
year after running onto the
field during the soccer World
Resurgent ISIS Imperils Libyan Oil Flow
BY JARED MALSIN
AND BENOIT FAUCON
Islamic State is staging a
resurgence in chaotic Libya,
claiming more than a dozen
attacks in the North African
country this year and threat-
ening to disrupt the flow of oil
from one of the world’s most
significant suppliers.
The group’s re-emergence
comes two years after Libyan
forces backed by U.S. air
power dislodged the extremist
group from its stronghold in
the coastal city of Sirte, and it
erodes one of the signature
victories in the yearslong U.S.-
led military campaign against
the militants.
The latest attack came last
week when gunmen wearing
explosive vests and carrying
assault rifles stormed Libya’s
state oil company, one of the
country’s most important and
heavily guarded institutions.
Explosions shook the building
and two employees died in the
assault.
One official said he shut
himself in his office and began
praying. “I saw my own cof-
fin,” the official said.
U.S. forces have kept up a
steady barrage of strikes tar-
geting Islamic State fighters in
the country, including a drone
strike in late August that killed
a group member in Bani Walid,
southeast of the capital, Tripoli,
according to the U.S. Africa
Command, which oversees
American military operations in
THE WALL STREET JOURNAL.
crisis for Mr. Putin to navi- Israel said it targeted a Syr-
gate. Russia’s plane was shot ian armed forces facility in Lat-
down just hours after Moscow akia where systems to manu-
struck an agreement with Tur- facture lethal weapons were
key to create a demilitarized about to be transferred to Hez-
zone in northwest Syria in an bollah, a political and militia
effort to prevent clashes be- group in Lebanon, on Iran’s be-
tween those two countries, half. It said the weapons posed
which are now on opposite an “intolerable threat” to Israel.
sides of the conflict. Syrian government officials
Statements by Moscow offi- weren’t available to comment.
cials followed an often-used Syria tried to retaliate
YURI KOCHETKOV/EPA/SHUTTERSTOCK
playbook that includes early against the strike when the jets
verbal escalation by lower of- were already back in Israeli air-
ficials that give Mr. Putin ex- space, according to an initial
tra room for diplomatic ma- probe by Israel’s military. The
neuvering. Early in the day, investigation also said Syria’s
Russia cast blame on Israel anti-air batteries fired indis-
and Russian Defense Minister criminately and its military ap-
Sergei Shoigu threatened to peared not to check whether
take measures in response to Russian planes were in the air.
the incident. Israel said Russia’s plane
Speaking during a live tele- wasn’t flying nearby Israeli
vised news conference Tuesday, jets during its operation, and
conflicts in the region and the Mr. Putin struck a conciliatory that it was “extensive and in-
danger of tragic miscalculation tone, saying he believed Israel accurate Syrian antiaircraft
in Syria’s crowded theater of was responsible but attributed fire” that took down the Rus-
operations,” he said. the loss of the plane to “a sian plane.
President Trump addressed string of tragic coincidences.” Israel’s confirmation of its
the incident, calling the deaths Russian Defense Ministry strike marked a rare public ac-
“a very sad thing, but that’s spokesman Gen. Igor Konash- knowledgment of its activities
what happens.” enkov said Israel had informed in Syria. Analysts said Russia
The multifaceted conflict Moscow of the incoming strike has unofficially given the
between Mr. Assad and the less than a minute beforehand, green light to Israel for lim-
rebels arrayed against him has making it impossible for Rus- ited strikes against Iranian
drawn in Russia, Israel, Iran, sian command to pull its targets in Syria as Syrian gov-
the U.S. and others to oppos- planes out of potentially dan- ernment troops push farther
ing sides, creating a tinderbox gerous areas. southwest, closer to the bor-
of competing interests. “As a result of the Israeli der with Israel.
The downing of the Russian military’s irresponsible ac- —Nazih Osseiran
.
reconnaissance plane looked tions, 15 Russian servicemen and Courtney McBride
ly
to create a fresh geopolitical died,” Gen. Konashenkov said. contributed to this article.
CINEMA FOR PEACE/REUTERS
Cup final, together with two Cathedral in 2012 and sang MediaZona.
other members of Pussy Riot, “Holy Mary, drive Putin out.” “Nobody who is taking part
dressed as police, in a protest He and two other members of in political activity right now
they said was meant to draw the group later appeared in an in Russia can really be safe,”
attention to police brutality in episode of Netflix Inc.’s politi- said fellow Pussy Riot member
Russia. cal drama “House of Cards.” Nadezhda Tolokonnikova in Ber-
Mr. Verzilov was involved In addition to his role in lin. She said that while it would
in the group when three mem- Pussy Riot, Mr. Verzilov also be dangerous for Mr. Verzilov to
bers of Pussy Riot broke into publishes the independent go back to Russia, she expected
Moscow’s Christ the Saviour Russian-language news site him to nonetheless return.
including an attack on the oil
ports by a militia in June and a
previous attack by Islamic State
on an oil field in February—
have imperiled a modest recov-
ery in the Libyan oil sector.
Oil production has climbed
back to close to one million
barrels a day since the state
oil company persuaded armed
groups to reopen facilities
HANI AMARA/REUTERS
they had previously blocked.
Last week’s attack had no im-
pact on supply but briefly
pushed up world oil prices.
In a communiqué claiming
responsibility for the attack on
The group claimed a Sept. 10 attack on Libya’s National Oil Corp. the state oil company, Islamic
State said: “We stress that the
the country. Islamic State cur- curity forces and a bombing in oil fields supporting the Cru-
rently has between 400 and May at the headquarters of the saders and their projects in
750 members in Libya, an Afri- Libyan election commission Libya are legitimate targets
com spokesman said recently. that killed a dozen people. for the mujahedeen.”
But Libya’s widening secu- “They use these attacks to The U.S. launched nearly
rity vacuum and worsening in- show they’re back in business, 500 airstrikes in 2016 in sup-
ternecine violence have given to rebrand themselves, to draw port of a ground campaign by
the group room to maneuver. recruits,” said Frederic Weh- Libyan forces that expelled Is-
Libya, home to the largest oil rey, a Libya expert with the lamic State from Sirte, denying
reserves in Africa, is splin- Carnegie Endowment for Inter- the group its most important
tered among two rival govern- national Peace. “The best re- foothold outside its core in
ments and a complex mosaic cruiter for the Islamic State in Iraq and Syria. A separate
of armed groups, and lacks a Libya is political turmoil, polit- U.S.-backed operation drove
fully functioning state. ical infighting. When Libya is the group out of strongholds
The worst clashes among divided, that gives room for in Iraq and Syria last year.
militias in over a year have the Islamic State to grow.” Many of the group’s fight-
gripped Tripoli in the past few The attack on the national ers fled to remote desert areas
weeks. A rocket attack by a oil company came amid con- in Libya’s center and south,
militia struck the city’s only cerns that problems in Libya where they have established
functioning airport on Sept. 11. could add to supply disrup- hideouts, according to West-
In this vortex of violence, tions surfacing in countries ern officials.
Islamic State’s Libyan branch such as Iran and Venezuela. Libya’s escalating civil war
has claimed responsibility for It also raised questions means that security forces
more than a dozen attacks about whether Libya’s oil facili- haven’t been able to turn
since early this year, including ties are adequately protected. their attention to eliminating
raids on rival militias and se- Attacks on Libya’s oil industry— the group there.
 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.
THE WALL STREET JOURNAL.
German Spy Chief Berlin Debates Pick for ECB
Is Out Over Remarks
BY ANDREA THOMAS
BERLIN—The German gov-
ernment is replacing a top in-
telligence official less than
two weeks after he made com-
ments that appeared to play
down far-right violence at the
margins of recent anti-immi-
gration protests.
Hans-Georg Maassen will
leave his post as head of the
Federal Office for the Protec-
tion of the Constitution, the
government said on Tuesday,
in a shuffle aimed at defusing
the latest outbreak of tension
in the country’s fractious
ruling alliance.
The decision, hammered
out in a meeting of the leaders
of Angela Merkel’s left-right
coalition, ends a tug of war
between the center-left Social
Democratic Party, junior part-
ner in the coalition, which had
been calling for Mr. Maassen’s
ouster, and Horst Seehofer, in-
terior minister and head of Ba-
varia’s conservative Christian
Social Union, who had backed
the intelligence chief.
As a compromise, Mr.
Maassen is to be made deputy
interior minister under Mr.
Seehofer—a formal promotion
that cushions his exit as intel-
ligence chief—but won’t over-
see his former agency, the
government said. The govern-
ment hasn’t yet named Mr.
MICHAEL SOHN/ASSOCIATED PRESS
Hans-Georg Maassen disputed a video alleging far-right violence.
no
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ensure the people
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Maassen’s successor as head
of the agency.
Following anti-immigration
protests in the eastern Ger-
man city of Chemnitz in late
August, Mr. Maassen told the
tabloid Bild daily on Sept. 7
that a video posted online by
antifascist militants that pur-
ported to depict far-right ex-
tremists hunting down for-
eigners in the city’s streets
showed no such thing.
The footage, which the gov-
ernment and Ms. Merkel her-
self had referred to days ear-
lier in denouncing attempts at
mob justice by extremists in
Chemnitz, might even have
been “false information,” Mr.
Maassen told the newspaper.
He later clarified his com-
ments, saying he hadn’t meant
to suggest that the video was
fabricated but that it was be-
ing overinterpreted. The riots
in Chemnitz were sparked by
the killing of a 35-year-old
German man, which prosecu-
tors allege was committed by
recent refugees.
Mr. Maassen’s comments
drew sharp criticism both
from some opposition parties
and from SPD politicians, who
accused him of turning a blind
eye to extremism. Tension in
the government rose further
after Mr. Seehofer publicly
backed Mr. Maassen, who has
been in office since 2012.
al a
ci on
er rs
m e
m rp
co Fo
n-
| T R U ST
WORLD NEWS
BY TOM FAIRLESS
FRANKFURT—The race to
succeed Mario Draghi as Euro-
pean Central Bank president
presents Germany with a stark
choice: Back the country’s own
candidate, a foe of Mr. Draghi’s
€2.5-trillion bond-buying pro-
gram, or concede that once-
unorthodox monetary tools are
here to stay.
Germany’s central bank,
long a powerful voice in the
global fight against inflation,
has grown out of sync in the
postfinancial crisis era of stag-
nant prices and wages, with
its greatly expanded role for
central banks and outside-the-
box policies.
“Perhaps the sands have
shifted,” said Stefan Gerlach,
former deputy governor of Ire-
land’s central bank. “Having
been on the wrong side of his-
tory, at least as it appears now,
has not helped the Germans.”
Now, with the jockeying
among European capitals al-
ready under way, Berlin must
decide in the coming months
whether to endorse Jens
Weidmann, president of Ger-
many’s central bank, who has
likened printing money to the
devil and testified against Mr.
Draghi’s crisis-era bond pro-
gram in a German court.
Backing Mr. Weidmann—
even if it provokes a veto from
countries like France and Italy,
where he is already a contro-
versial figure—would show
that Germany stands by the
philosophy that central banks’
on primary responsibility should
be to keep inflation low and
avoid printing money to buy
government debt.
“The political price for Jens
us l,
Weidmann is high…because he
has shown open criticism to
e
some ECB policies,” said Isabel
Schnabel, a member of the
German Council of Economic
Experts.
Mr. Draghi steps down as
head of the ECB next autumn,
but the race to succeed him is
unofficially under way. A hand-
ful of officials have publicly
flirted with the idea, although
no candidate has openly de-
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A N D E STAT E S E RV I C E S
Piled High
Assets held by the European Central Bank have surged since Mr. Draghi took office,
owing to bond purchases and cheap loans to banks.
ECB's balance sheet under its three presidents
€5 trillion
4
Wim Duisenberg
3
2
1
0
1999 2000
Note: €1=$1.17
Source: European Central Bank; Photos: Agence France-Presse/Getty Images; Associated Press (2)
clared an interest.
As the biggest economy in
Europe, Germany should have
outsize influence in deciding
the central-bank chief for the
next eight-year term.
But the selection will be
part a grand bargain among
EU members over top Euro-
pean Union jobs, including the
head of the European Commis-
sion, a fact that is complicat-
ing Chancellor Angela Merkel’s
equation. German officials say
the government hasn’t decided
whether to support Mr.
Weidmann or focus on another
top EU post.
Installing Mr. Weidmann
could bring dividends domes-
tically. Conservatives in Ms.
Merkel’s Christian Democratic
Union say they badly need a
German ECB president to
boost their credentials among
voters worried about low
rates, inflation and a central
bank they think is bankrolling
profligate governments in
Southern Europe.
Mr. Weidmann, a former
economic adviser to Ms.
Merkel, has sparred with Mr.
Draghi over the best way to
address Europe’s economic
woes. He has attacked the Ital-
ian policy of large-scale bond
| I N V E ST M E N T
Wednesday, September 19, 2018 | A9
Jean-Claude Trichet
’05
purchases, and resisted Mr.
Draghi’s effort to tilt the ECB
away from the Bundesbank
principles it was modeled on,
to be more like the U.S. Fed-
eral Reserve, which bought
vast sums of U.S. debt after
the financial crisis.
German central bank
chief who likened
printing money to the
devil is a candidate.
Mr. Weidmann has com-
pared central-bank bond buy-
ing to a drug. In 2012, he used
the devil from German literary
classic, Goethe’s “Faust,” to
rail against printing money,
just weeks after Mr. Draghi’s
now-famous pledge to do
“whatever it takes” to save the
euro. He has, however, backed
many other ECB polices, in-
cluding negative interest rates.
Many economists say Mr.
Draghi’s policies supported
growth and helped create mil-
lions of jobs. The bond-pur-
chase program, known as quan-
titative easing, lowered bond
M A N AG E M E N T
Mario Draghi
’10 ’15
THE WALL STREET JOURNAL.
yields in Italy and other strug-
gling euro members. The bloc’s
growth outpaced the U.S. over
the past two years, and while
inflation has risen, it remains
around the ECB’s 2% target.
Critics like Mr. Weidmann
charge that the polices took
pressure off members to re-
form their economies.
And some of the German
central banker’s concerns
about bond-buying being ad-
dictive have some backing in
the numbers. The ECB initially
.
said it would purchase €1.1
ly
trillion of debt and end its
bond-buying program two
years ago. But the ECB has
now bought €2.5 trillion ($2.9
trillion) of bonds, and won’t
end the program until Decem-
ber at the earliest.
Unwinding that program,
and phasing other ECB stimu-
lus measures at a time when
the region’s economy appears
to be softening, will be the
biggest task facing the next
ECB president.
Mr. Draghi insists that buy-
ing government bonds will re-
main “part of the toolbox.”
“It’s a new instrument of
monetary policy that will be
used for contingencies that we
don’t see now,” he said in June.
| P R I VAT E B A N K I N G
 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.
A10 | Wednesday, September 19, 2018
Retailers Maneuver
To Beat New Tariffs
Holiday period unlikely
to be hit by duties,
but chains are bracing
for higher costs in ’19
BY SARAH NASSAUER
AND JOSH ZUMBRUN
Big retailers are hustling to
speed some shipments
through ports and bracing for
higher costs next year from
the U.S. decision to impose
tariffs on Chinese bicycles,
handbags and thousands of
other consumer goods, though
the cost increase won’t hit
most holiday items.
President Trump said Mon-
day he would slap the new tar-
iffs on about $200 billion in
Chinese imports, including
typical holiday purchases such
as Christmas lights and wrap-
ping paper. The 10% duty will
take effect Sept. 24 and will
rise to 25% at the end of the
year, according to administra-
tion officials.
The timing means most hol-
iday goods for 2018 aren’t
likely to be subject to big price
increases, said industry con-
sultants and executives, be-
cause many leading chains like
Walmart Inc. and J.C. Penney
Co. already have imported
most of their winter items,
and the strong U.S. economy
will allow retailers and their
suppliers to absorb much of
the initial costs.
“Ten percent seems like a
wash with the appreciation of
the U.S. dollar,” said Murali
Gokki, managing director at
consultancy AlixPartners. But,
he said, over the holidays the
tariffs could affect smaller re-
tailers shipping seasonal items
late or retailers importing hot
items at the last minute.
“Most large retailers al-
ready have landed most of
their holiday goods by the
first of October,” said Chris
Sultemeier, former executive
vice president of logistics for
Walmart, who left the world’s
largest retailer last year. He
said the tariffs will have a
greater impact on goods that
will arrive at U.S. ports in No-
vember, December and be-
China Hits
Out at U.S.
Products
Continued from Page One
Trade Representative Robert
Lighthizer to begin the pro-
cess of crafting the next
tranche of tariffs that, if fully
implemented, would cover vir-
tually all imports of Chinese
goods, which totaled $505 bil-
no
lion in 2017.
While the threat of more
tariffs might intensify the rhe-
torical pressure on Beijing,
these people stressed, the ac-
tual administrative process—
including holding public hear-
ings, receiving written public
comments, and conducting in-
ternal impact studies—would
take weeks before any fresh
measures would take effect.
Mr. Trump said on Tuesday
that he was eyeing tariffs on
an additional $257 billion in
Chinese goods, but the state-
ment he issued on Monday
said it was $267 billion. An
administration official said the
White House statement citing
the $267 billion figure accu-
rately described the policy.
The next round would be
HONG KONG
Foreigners Win Right
In Same-Sex Unions
Hong Kong agreed, in a step
toward greater recognition of
gay rights, to grant dependency
visas to foreigners in same-sex
unions, a move sought by multi-
national companies operating in
the Chinese financial center.
The government made the
change, which takes effect
Wednesday, after the city’s high-
est court ruled in July that im-
migration officials were wrong
to deny a dependency visa to a
British lesbian whose partner
was offered work in the city.
yond. Retailers probably will
try to accelerate spring prod-
ucts through customs before
the potential 25% tariff takes
effect, he said.
Much of the apparel, elec-
tronics and consumer goods
sold in the U.S. has been man-
ufactured abroad for years,
creating global supply chains
that tap into lower-cost labor
and factories. The Trump ad-
ministration has publicly
promised to spur U.S. manu-
facturing and close a trade
gap with China. Many U.S.
companies are walking a tight-
rope—telling the government
the new duties will result in
higher prices for American
households, but at the same
time seeking to avoid spooking
shoppers with big price jumps.
The initial tariffs imple-
11
percentage of all U.S. imports
that are now subject to tariffs
mented by the U.S. earlier this
year have had mostly limited
macroeconomic impacts be-
cause the goods affected—in-
cluding washing machines and
solar panels—were a small
part of the economy. The lat- on
est tariffs against China raise
the stakes, with tariffs now
hitting about 11% of total U.S.
imports and around half of all
us l,
trade with China.
An analysis from Moody’s
al a
e
estimated the planned trade
restrictions would exact their
greatest toll next year, reduc-
ci on
ing the U.S. economy’s growth
rate by 0.25 percentage point
in 2019. Moody’s estimates the
economy will grow 2.3% in
2019, a sharp step down from
er rs
the 4.2% annualized rate
reached in the second quarter
of this year.
Some products will be hit
m e
indirectly. The latest round
will affect some toy companies
that finish their products in
m rp
the U.S. as a result of tariffs
on dyes and some materials
used in packaging, said Steve
co Fo
Stiff Levies
If the U.S. and China follow through with threats to impose further
tariffs on imports from each other, virtually the entire trade in goods
between the world’s two largest economies will be affected.
U.S. merchandise
imports from China
12-month rolling total
July
$500 billion
$529 billion
400
Value under
n-
threat of
300 further tariffs
$267 billion
200
Value under
100
announced
tariffs
$250 billion
0 0
2000 2010
Sources: Census Bureau (exports and imports); White House (tariffs)
far more politically and eco-
nomically perilous, covering a
range of consumer goods—
from electronics to toys—that
have largely been spared so
far.
Further tariffs may be
meted out in stages and may
not extend to all imports. Peo-
ple familiar with the process
noted that the U.S., in re-
sponse to industry complaints,
took nearly 300 products off
the list of those subject to the
WORLD WATCH
More than a dozen banks and
law firms—including Goldman
Sachs Group Inc. and BlackRock
Inc.—backed the woman’s years-
long legal battle with the city’s
immigration department.
The announcement is a sign
of shifting attitudes to same-sex
couples in conservative Asia.
Australia and New Zealand are
among the few countries in the
region that recognize same-sex
marriages. This month, India’s
top court ruled that gay sex
wasn’t a crime, while Taiwan’s
top court ruled last year a law
defining marriage as exclusively
between a man and a woman
was unconstitutional.
—Natasha Khan
WORLD NEWS
Pasierb, president of the Toy
Association Inc., a trade group
whose members include Mat-
tel Inc. and Hasbro Inc.
The latest tariffs list will hit
many consumer and household
goods, including knit hats and
plastic raincoats, handbags
and wallets, toaster ovens and
power tools. Other items, in-
cluding Apple Inc. smart-
watches and Nike Inc. sneak-
ers, aren’t included.
Many retailers said Tuesday
they were still evaluating the
list of products subject to tar-
iffs and talking with suppliers,
saying it was too soon to
change course. They had
warned ahead of the decision
they cannot easily shift suppli-
ers and that for certain items
there aren’t factories outside
China ready to produce them.
“This year’s holiday orders
have already been placed, and
orders for next Spring are well
in process,” lawyers for J.C.
Penney wrote earlier this
month to the administration.
They noted the department
store makes purchasing deci-
sions up to a year in advance
and that it can take more than
two years to find and audit
new suppliers.
As tariffs are implemented,
retailers are likely to try to
minimize price increases for
consumers, asking suppliers to
bear some of the cost, reduc-
ing their own margins slightly
and passing some of the cost
along to consumers. “Retailers
are sensitive to who is going
to be the first mover,” and will
work to cut costs to limit price
increases, said Mr. Gokki at Al-
ixPartners.
Customs brokers have been
focused on working out which
of their customers will be sub-
ject to the new duties and
whether their shipments will
beat the Sept. 24 deadline.
The phone “hasn’t stopped
ringing for weeks,” said Mike
Lahar, corporate compliance
manager at customs broker
A.N. Deringer Inc. “If you’re
shipping ocean you’re proba-
bly going to be out of luck if
it’s not already on the water.”
—Paul Ziobro
and Erica E. Phillips
contributed to this article.
U.S. merchandise
exports to China
12-month rolling total
$500 billion
400
300
200
100 $135 billion
$60 billion
$50 billion
2000 2010
THE WALL STREET JOURNAL.
tariffs announced this week,
saying that shows an openness
to arguments that duties
would cause too much pain in
specific circumstances.
One factor that could shape
the path of future tariffs
would be whether the coun-
tries resume high-level trade
talks. Such talks were
launched in the spring after
Mr. Trump first threatened
taxes on Chinese goods, but
broke off after the U.S. imple-
PAKISTAN
Government Moves
To Patch Budget
Pakistan’s new government
introduced what it called an
emergency budget, weeks after
taking office, introducing spend-
ing cuts and tax increases to
tackle budget and trade deficits.
The measures announced
Tuesday by Prime Minister Imran
Khan’s administration could get
Pakistan into better fiscal shape
to meet the demands of a possi-
ble bailout from the International
Monetary Fund, a step expected
by many economists.
—Saeed Shah
Shipping containers sit on a Hong Kong-based container ship at the Port of Oakland, in California.
President Trump has announced more tariffs on thousands of imported Chinese consumer goods.
Good Tithings
The latest round of goods from China to face U.S. tariffs includes some that might be expected to appear
on a holiday shopping list. Figures reflect 12 months through July 31.
Larger bicycles $548.4
Hats (synthetic fiber, not knitted)
Paper diaries and notebooks
Insulated food & beverage bags
Christmas lights
Leather gloves
Knitted hats (synthetic fiber)
Children’s bicycles
Fur Apparel
Baseball and softball mitts
Children's and artists’ paint sets
Bath preparations
Raincoats & plastic rainwear
Even within a product category, the tariffs could have a wide range of effects across narrower
sub-categories.
All handbags
Leather handbags (over $20 each)
Plastic handbags
Leather handbags (under $20 each)
Alligator-skin handbags
Note: Categories may include other, related products.
Source: Panjiva
mented a first round of duties
in July.
Treasury Secretary Steven
Mnuchin has been trying to
restart the talks, and a series
of Washington visits by Chi-
nese officials had been sched-
uled for the next few days.
Shortly after the White
House’s announcement late on
Monday, the Chinese leader-
ship’s economic troubleshooter,
Vice Premier Liu He, huddled
with his top lieutenants to de-
vise a response, according to
officials briefed on the matter.
On the agenda was whether
Mr. Liu or lower-level officials
should go ahead with those
travel plans. China’s Commerce
Ministry, in a brief statement
midday Tuesday, said the U.S.
tariffs create “new uncer-
tainty” for negotiations.
The Chinese leadership
faces a dilemma as the world’s
two largest economies pitch
closer to a full-bore trade war.
President Xi Jinping has
banked his popularity and
strongman reputation on turn-
ing China into a global power
and can’t afford to back off,
instructing officials to stand
firm and punch back in negoti-
ations.
Yet Mr. Xi has also ordered
his officials to keep engaging
with Washington and U.S.
businesses, according to Chi-
nese officials and government
NIGERIA
Dozens Die in Floods,
Toll Expected to Rise
Authorities say around 100
people died in flooding after
heavy rains. A National Emer-
gency Management Agency
spokesman said the deaths oc-
curred in 10 states and the toll
could rise.
Some of the worst affected
areas are along the Niger River.
Its water level is expected to
rise substantially if water is re-
leased from the Lagbo dam in
Cameroon as Nigerian authori-
ties anticipate.
—Associated Press
* *** THE WALL STREET JOURNAL.
China imports (millions)
336.3
375.8
457.7
.
397.0
ly
257.7
318.6
353.2
38.7
14.1
53.2
38.8
29.8
0% 25 50
Share of imports
1,236.3
405.6
539.2
45.9
1.3
0% 25 50
advisers, a stance seen as ad-
dressing concerns that a spi-
raling trade fight could harm
an already slowing economy
and derail China’s economic
growth prospects.
An option being considered,
the officials said, involves
sending a lower-level trade of-
ficial—Vice Minister of Com-
merce Wang Shouwen—for
talks this month, sparing Mr.
Liu. Under the original plan,
lower-level talks were to take
place this week ahead of Mr.
Liu’s trip to Washington late
next week. As of late Tuesday,
no final decisions were made
on the issue, according to the
officials.
An ally of Mr. Liu’s vented
Tuesday about the pressure
from Washington. “Negotia-
tions can’t be done with this
kind of tactic,” Fang Xinghai,
vice chairman of the China Se-
curities Regulatory Commis-
sion, said at a World Economic
Forum meeting in the coastal
city of Tianjin.
“It may work with some
small country,” he said. “It
doesn’t work with China.”
Voices have been rising in
Chinese policy circles in re-
cent weeks saying that Beijing
should wait to negotiate until
after the November midterm
elections. Many Chinese offi-
cials think Mr. Trump isn’t
ready to cut a deal, is bashing
Violence Flares Up in Ethiopia
COVER: Ethiopians in a shelter near the capital Addis Ababa after
fleeing ethnic clashes that killed at least 20 people over the weekend.
JUSTIN SULLIVAN/GETTY IMAGES
Total imports
$1,005.0
659.5
649.8
499.6
476.8
471.2
414.9
387.9
117.8
72.7
65.3
54.0
32.7
75 100
3,218.4
1,614.6
981.8
89.2
64.4
75 100
THE WALL STREET JOURNAL.
China now to appeal to his po-
litical base and may be more
willing to negotiate after the
elections.
Mr. Trump, a Republican,
signaled in a pair of tweets
Tuesday that he would seek to
use Chinese retaliation to rally
his supporters in the fall cam-
paign, portraying Beijing’s tar-
iffs as a policy of “actively try-
ing to impact and change our
election by attacking our
farmers, ranchers and indus-
trial workers because of their
loyalty to me.”
The trans-Pacific commer-
cial conflict was launched in
March, when Mr. Trump’s ad-
ministration issued the results
of an investigation accusing
China of unfair trade prac-
tices, especially pressuring
U.S. companies to turn over
valuable intellectual property
to gain access to the Chinese
market.
Mr. Trump feels he has the
upper hand in the tariff fight
because the U.S. imported
more than $500 billion in Chi-
nese goods last year, while
China imported $130 billion
from the U.S., meaning Beijing
is running out of U.S. products
to penalize.
—Vivian Salama in
Washington,
Chao Deng in Tianjin and
James T. Areddy in Shanghai
contributed to this article.
AGENCE FRANCE-PRESSE/GETTY IMAGES
 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.

THE WALL STREET JOURNAL. * * * * * * Wednesday, September 19, 2018 | A11

WORLD NEWS

Korean Leaders
Reach Agreement
BY JONATHAN CHENG
AND DASI YOON
SEOUL—North Korea agreed
to allow outside inspectors to
visit its missile test site and
said it would be willing to de-
commission its nuclear-enrich-
ment facility, a bold gambit by
leader Kim Jong Un aimed at
breaking an impasse in negoti-
ations with the U.S. and keep-
ing diplomatic engagement
with Seoul on track.
ity—provided the U.S. took
“corresponding steps” to fulfill
the terms of the agreement
signed by the U.S. and North
Korea in June. The two leaders
didn’t mention the involvement
of any international inspectors
at Yongbyon.
The announcements offer
fresh hope of a breakthrough
between Mr. Kim and President
Trump, who has floated the
idea of a second U.S.-North Ko-
rean summit meeting, follow-

On Wednesday, the second
of three days of talks in Pyong-
yang, Mr. Kim and South Ko-
rean President Moon Jae-in
emerged from an hourlong pri-
vate meeting to sign a docu-
ment and hold a joint press
conference where they each re-
affirmed their goals of ridding
the Korean Peninsula of nu-
clear weapons.
Mr. Kim also said that he
would visit South Korea in the
near future, in what would be a
first for a North Korean leader.
Under the agreement, out-
side inspectors and experts will
be allowed to witness the dis-
mantling of North Korea’s So-
hae satellite-launching facility
in the country’s northwest. In
recent months, commercial sat-
ellite imagery has showed the
North taking apparent steps to
take down the site.
ing their Singapore summit
three months ago.
Stalled talks between the
U.S. and North Korea had
loomed over this week’s Pyong-
yang summit. The U.S. has in-
sisted that the North take con-
crete steps toward dismantling
its nuclear and missile program
as a precondition for further
diplomacy, while Pyongyang
says the U.S. has dragged its
feet on signing a treaty to end
the Korean War. The Koreas
have remained technically at
war for more than six decades
after the 1950-53 Korean War
ended in armistice without a
formal peace treaty.
In addition to the steps on
the missile and nuclear sites,
Wednesday’s agreement be-
tween the two Korean leaders
will also create a joint military
commission aimed at reducing
KM ASAD/ZUMA PRESS
Rohingya fled into Bangladesh in October. The U.N. pressed for a referral to the International Criminal Court or the creation of a tribunal.
U.N. Calls For Myanmar Genocide Charges
BY JON EMONT who headed up the fact-finding Myanmar isn’t a signatory to strably failed; the United Na-
mission, said that the entire the court and the body doesn’t tions as a whole failed to ade-
The United Nations said military leadership should be have jurisdiction there. How- quately address human rights
leaders of Myanmar’s military removed and the armed forces ever, the court earlier this concerns,” the report said. The
should be prosecuted for geno- placed under civilian control. “I month authorized its chief problem continues with “few
cide of the Rohingya minority have never been confronted by prosecutor to pursue justice signs of any lessons learned” as
in a landmark report Tuesday crimes as horrendous and on against Myanmar’s generals for agreements are still signed with
that criticized the world body’s such a scale as these,” he said the government that fail to take
own agencies for not doing in a statement. into account human rights con-
enough to confront the govern- The U.N. report was pre- cerns.
ment over human rights. sented and discussed at a meet-
A report says military The report documented de-
The report provides the ing of the U.N. Human Rights leaders should be humanizing insults hurled at
most detailed and haunting Council in Geneva, with Myan- the Rohingya by the military
prosecuted for the

.
The two Koreas also said tensions between the two look yet at the massacres and mar’s representative saying it and civilians in Buddhist-major-

that the North would perma-
nently decommission its Yong-
byon nuclear-enrichment facil-
sides. other actions taken against the
—Andrew Jeong Rohingya, a Muslim minority,
contributed to this article. which left 10,000 people dead
on and drove some 700,000 into
neighboring Bangladesh.
Satellite imagery, interviews
with victims and graphic photo-
graphs of wounds inflicted on
us l,
was biased and would foment
ethnic disunity. Bangladesh,
which has sheltered the Roh-
ingya but eventually wants
them to safely return home,
called the report an “unambigu-
ous response” to Myanmar’s
frequent claims no evidence of
ly
Rohingya’s treatment.
crimes that occurred in Bangla-
desh, a signatory to the court,
such as forced deportation. On
Tuesday, the court opened a
ity Myanmar and listed the dif-
ferent methods of torment in-
flicted by soldiers on their
victims, including burning with
cigarette butts, jabbing with
needles and forcing some to dig
their own graves.
During the raids in August

survivors painted a picture of mass atrocities existed. probe into the alleged crimes, a 2017, which followed a series of
large-scale organization and The report said charges of first step on a road that could small attacks by Rohingya mili-
al a
e
brutality, the report said. In one genocide needed to be brought lead to formal charges. The tants on security forces, infan-
PYEONGYANG PRESS CORPS/REUTERS

example, the report described a against military leaders and main alleged crimes of geno- try divisions used similar strat-
coordinated navy and army op- urged the U.N. Security Council cide, however, would have oc- egies of rushing into villages,
ci on

eration to fire on the seaside
village of Koe Tan Kauk from
land and sea. As residents fled,
soldiers stormed in, slaughtered
people with knives and burned
er rs
to refer the case to The Hague-
based International Criminal
Court or to create a special tri-
bunal. The Security Council is
unlikely to do so as veto-wield-
curred in Myanmar.
The report also was scathing
of U.N. agencies, which it said
prioritized achieving develop-
ment goals and quiet diplomacy
shooting and knifing villagers,
and rounding up women to be
raped. “The modus operandi of
these attacks was recognizable
and consistent throughout,” the

the community to the ground. ing members Russia and China with the government, turning a report noted.
Marzuki Darusman, a former have shown support for Myan- blind eye to abuses. —Myo Myo
Moon Jae-in, left, and Kim Jong Un in Pyongyang on Tuesday. attorney general of Indonesia mar’s military. “That approach has demon- contributed to this article.
m e
m rp
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 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.
A12 | Wednesday, September 19, 2018
Gmail
Replies
Get Perky
Continued from Page One
so I said it,” Rose Klein replied,
tongue-in-cheek, after her
daughter asked about the un-
usual vernacular.
“I knew that it would confuse
her,” the elder Ms. Klein said,
but using Smart Reply “was just
so easy.”
Originally launched as an
app-only feature to help smart-
phone users avoid the hassle of
typing on their phones, Smart
Reply has become ubiquitous
since Google began defaulting
its 1.4 billion active accounts to
the new version of Gmail in re-
cent weeks. By next month, the
feature—which uses artificial in-
telligence to scan incoming
emails and predict possible re-
sponses—will become a default
setting for all Gmail accounts.
Already, 10% of all Gmail re-
Hospital
Deals Drive
Rising Costs
Continued from Page One
The Wall Street Journal has
identified dozens of contracts
with terms that limit how insur-
ers design plans, involving oper-
ators such as Johns Hopkins
Medicine in Maryland, the 10-
hospital OhioHealth system and
Aurora Health Care, a major
system in the Milwaukee mar-
ket. National hospital operator
HCA Healthcare Inc. also has re-
strictions in certain markets.
The U.S. spends more per
capita on health care than any
other developed nation and will
soon spend close to 20% of its
GDP on health. Americans aren’t
buying more health care overall
than other countries. What they
are buying is increasingly ex-
pensive. Among the factors
driving spending is the opaque
way the price of health care is
set, a problem exacerbated by
the hidden details in agree-
ments between insurers and
health-care providers.
“No hospital system should
be able to exercise market
power to demand contract
agreements that prevent more
competitively priced networks,”
said Cigna’s chief medical offi-
cer, Alan Muney, in a statement
provided by the company.
A health plan that excludes a
costly system can be more than
10% less expensive for consum-
ers and employers, according to
insurance-industry officials. A
plan that includes all providers
but steers patients away from
the costlier ones can save 3% to
7% or more, these people said.
Walmart blocked
Restrictive hospital-insurer
contracts have helped prevent
no
even big employers, including
Walmart Inc. and Home Depot
Inc., from moving forward with
plans they were exploring to try
to lower costs and improve
quality for their workers.
A Northwell spokesman said
“negotiations and other conver-
sations with our insurers are
confidential.” Aurora, which is
now part of a larger system
called Advocate Aurora Health,
said in a statement from Carrie
Nelson, a vice president, that it
approaches “all of our contracts
through the same lens that
guides all of our clinical and op-
erational decisions: what will
ensure the highest quality of
care at the lowest cost for our
patients.” HCA said it “provides
patient access to health care in
a variety of settings and con-
tracts with health-care payers
for all of its services and sites
of care in the communities it
serves.” NewYork-Presbyterian,
Johns Hopkins and OhioHealth
declined to comment on their
contracts.
Hospital-industry officials
said patients should be able to
choose their health-care pro-
vider without financial pressure
from their insurers or employ-
ers. Insurers are focused on
their bottom lines, not neces-
sarily the best care for patients,
they said. “Allowing the patient
to make the best decisions for
them and their family and their
health is the central goal,” said
Matt Gove, chief consumer offi-
cer at Piedmont Healthcare, a
large system in the Atlanta area.
This article is based on doz-
ens of interviews with current
and former health-insurance ex-
sponses are generated through
Smart Reply.
Early adopters say the replies
careen between overly enthusi-
astic (“Very interesting!”) and
dismayingly flat (“Thanks a
lot.”). The context can be
slightly off, particularly in work
settings.
Rory Hurlburt, a 41-year-old
creative director in West
Springfield, Mass., recalled a re-
cent companywide email in-
forming him a client was taking
his business elsewhere. He was
offered Smart Reply suggestions
such as “That’s great!” and
“Awesome news!”
Shane O’Regan, an Irish actor
currently in an off-Broadway
show, said his suggested replies
often include “Sweet!” and
“Awesome!”—answers he
wouldn’t want to send his agent.
“I’m not a surfer dude.”
There is a reason “Awesome”
comes up so often, said Ajit
Varma, director of product man-
agement at Google: A lot of peo-
ple use it when responding to
email.
Mr. Varma said all suggested
replies are drawn from an ever-
growing “library” of phrases
on
us l,
al a
e
ci on
er rs
Bob McKitrick, a teacher near St. Louis, checks prices carefully before getting health care but can’t find them for some hospitals.
ecutives, employer executives,
m e
hospital officials, researchers
and other experts.
Certain hospital systems are
m rp
able to command advantageous
terms because they have grown
through years of deal-making,
shifting the balance of power
between hospitals and insurers.
co Fo
In 2010 the annual number of
hospital mergers shot up 40% to
59, and the number of deals has
remained above 60 every year
since, according to Irving Levin
Associates, a research firm that
tracks health-care transactions.
About 77% of Americans liv-
ing in metropolitan areas are in
hospital markets considered
highly concentrated, ranging
from Modesto, Calif., to Tren-
ton, N.J., according to a Wall
Street Journal analysis of 2016
n-
data from researchers at the
University of California, Berke-
ley. The analysis excluded areas
with more than three million
people, which economists be-
lieve are too large to be consid-
ered single markets.
“If you’re the single hospital
system in an area, you essen-
tially can set your price, be-
cause you’re a monopoly,” said
Patrick Conway, the chief execu-
tive of Blue Cross and Blue
Shield of North Carolina. “We
literally have to have them in
network.” Even in a region with
more than one hospital system,
“if they are the dominant player
in part of the geography, they
can charge higher rates,” Mr.
Conway said.
Hospital care is the largest
single component of health-care
spending in the U.S. It accounts
for more than $1 trillion a
year—roughly three times what
is spent annually on prescrip-
tion drugs, the third-largest cat-
egory. The second largest is
physician and clinical services,
many of which are now pro-
vided by hospital systems.
‘Not working’
Hospital prices grew at about
three times the rate of econo-
mywide inflation between 1960
and 2016, according to data
from the Centers for Medicare
and Medicaid Services and Al-
tarum, a nonprofit health sys-
tems research and consulting
group in Ann Arbor, Mich.
“The marketplace is just not
working,” said Gerard Ander-
son, a health-care economist at
Johns Hopkins University. In-
surers that must negotiate re-
imbursement with health-care
providers for plans offered by
employers pay roughly 50%
FROM PAGE ONE
Not my type
that a Google bot identified as
relevant after analyzing billions
of Gmail messages. The model
will suggest up to three re-
sponses to any new email re-
ceived, as long as it’s able to de-
termine the message’s context.
Dour or rude responses tend to
be excluded from the bot’s li-
brary of possible replies.
During testing, Mr. Varma
said, engineers working on the
prototype noticed one gaffe: The
algorithm was identifying the
phrase “Sent from my iPhone”
as a popular response to emails.
They fixed the issue before the
phrase became a suggested re-
ply, he said.
Another one: Google said an
early prototype of the feature
had “a propensity to respond
with ‘I love you’ to seemingly
anything,” forcing it to tweak
Major Expense
Hospital care is the largest component of health-care spending in the U.S. Hospitals have gained clout in
negotiations with insurers as they have merged and acquired physician practices.
Percentage of total personal
health-care expenditures
50%
40 Hospital
30
Physician and clinical
20
Other
Prescription drug
10
0 Dental services
1960 ’70 ’80 ’90 2000 ’10
Sources: Centers for Medicare and Medicaid Services (expenditure); Brent Fulton, University of
California, Berkeley (where primary-care doctors work); Irving Levin Associates (hospital mergers)
more than Medicare on average,
he said, and those rising costs
are “the main culprit for why
the U.S. spends so much on
health care.”
Hospital-industry officials
said that hospital-system con-
solidation hasn’t driven higher
costs. “It’s the insurers that re-
tain the greatest leverage,” said
Melinda Hatton, general counsel
of the American Hospital Asso-
ciation. The hospital association
also said that hospitals must
rely on private-insurer pay-
ments to sustain themselves,
because they lose money on un-
insured patients and those cov-
ered by government programs.
Ms. Hatton said hospitals’ merg-
ers aim to reduce expenses and
improve quality and efficiency.
The effect of contracts be-
tween hospital systems and in-
surers can be difficult to see di-
rectly because negotiations are
secret. The contract details, in-
cluding pricing, typically aren’t
disclosed even to insurers’ cli-
ents—the employers and con-
sumers who bear the cost.
Among the secret restric-
tions are so-called anti-steering
clauses that prevent insurers
from steering patients to less-
expensive or higher-quality
health-care providers. In some
cases, they block the insurer
from creating plans that cut out
the system, or ones that include
only some of the system’s hos-
pitals or doctors. They also hin-
der plans that offer incentives
such as lower copays for pa-
tients to use less-expensive or
higher-quality health-care pro-
viders. The restrictive contracts
the algorithm. “You don’t want
to respond that to your boss,”
Mr. Varma said.
Gmail refines the style and
tone of the suggested responses
as a user chooses more replies,
Mr. Varma said.
Some users say the tool is
particularly useful to quickly ac-
knowledge they have seen
someone’s message. Others see
it as a creepy reminder that
Google’s computers are reading
their correspondence.
Brittany Van Horne, a Los
Angeles-based comedy writer,
was looking for a new gig last
month when a potential em-
ployer emailed to ask if she was
free for an interview. Gmail sug-
gested she say she was “pretty
open” or “available next week”
or “available any time.” She
wondered if the feature had
Where primary-care
doctors work
Hospital or
Medical healthcare
group system
2016
21.2%
2010
30.7% 27.7%
43.5%
41.6%
35.3%
Independent
practice
sometimes require that every
facility and doctor in the con-
tracting hospital system be
placed in the most favorable
category.
The restrictions in some hos-
pitals’ contracts mean “you
must always include them,” said
Chet Burrell, former chief exec-
utive of CareFirst BlueCross
BlueShield, which offers cover-
age in Maryland and the D.C.
area. “If their costs are 50%
higher for the same service, you
have to include them. That cost
is directly built into premiums.”
‘If you’re the single
hospital system in an
area, you essentially
can set your price.’
In some cases, contract
clauses prevent patients from
seeing a hospital’s prices by al-
lowing a hospital operator to
block the information from on-
line tools. Because of such re-
strictions, some health-insur-
ance enrollees can’t find prices
for hospital systems, including
BJC HealthCare in St. Louis and
NewYork-Presbyterian.
The gaps frustrate consum-
ers such as Bob McKitrick, a
teacher who lives near St. Louis
and has insurance with a $5,400
family deductible. Mr. McKitrick
checks prices carefully before
getting care, he said, and he
finds them for most providers.
The website for his insurer,
THE WALL STREET JOURNAL.
looked at her calendar, which
was indeed pretty empty.
Mr. Varma said Smart Reply
end of a canned response, she
can’t help but feel a little sad.
“I feel they didn’t take the
doesn’t work with other tools
such as Google Calendar to for-
mulate suggestions.
time to write a real response,”
she said. “Like, we’re at that
level now?”
Google and other email pro-
viders have come under fire for
allowing bots and outside soft-
Google said the user feed-
back for Smart Reply and Smart
Compose has been positive. Us-
ware developers to scan users’ ers who don’t like the feature
emails. The company has said it can opt out of the replies on the
“will keep privacy and security mobile app, Mr. Varma said, and
paramount.” the ability to opt out of the
Google is taking the concept desktop version will be added in
further with Smart Compose, the coming weeks.
which offers to finish your sen- Sarah Scott, a 31-year-old DJ
tences as you type. Mr. Varma in Melbourne, Australia, found a
said it would become a default positive side to Gmail’s perky
feature for all Gmail users by responses after a music festival
the end of the month. promoter emailed to tell her she
Ms. Klein, who has been try- had been cut from the program.
ing out Smart Compose, found An angry Ms. Scott was com-
it striking that “we’re so willing posing a response she referred
to let Google replace our voice,” to as “passive aggressive,” when
she said. she noticed those bubbles below
A web user-experience de- her screed. She erased her mes-
signer for the Wikimedia Foun- sage, clicked: “No problem,
dation, Ms. Klein said she uses thanks!” and hit send.
Smart Reply in emails to her Later that day, the promoter
parents—it’s now become an in- responded to say Ms. Scott
side joke between them—and to would be considered for next
colleagues for quick acknowl- year’s festival.
edgments. However, when she “Gmail auto replies make me
realizes she’s on the receiving a better person,” Ms. Scott said.
Thomas Nickels said facility
fees, which are also paid by
Medicare, are needed to cover
the extra costs that hospitals
must shoulder, including treat-
ing any patient who needs care.
Anthem agreement
Insurer Anthem Inc.’s agree-
ment with NewYork-Presbyte-
.
rian restricts its ability to ex-
ly
clude the hospital system,
which includes the prestigious
Columbia University Irving
Medical Center and Weill Cor-
nell Medical Center, from its
health plans. To help win the
New York area business of the
NICK SCHNELLE FOR THE WALL STREET JOURNAL Health Transformation Alliance,
an employer group, Anthem
partnered with a small company
called Brighton Health Plan So-
lutions, which had its own plans
that don’t include NewYork-
Presbyterian. Simeon Schindel-
man, chief executive of Brigh-
ton, said the company is “very
open to strategic alliances that
help us bring lower cost, better
quality health care to even more
families.” Anthem declined to
comment on its contracts.
Companies have been
thwarted from developing new
plans for workers. A few years
ago, officials at Home Depot
asked Anthem, which adminis-
Number of tered its coverage, to create a
hospital mergers plan for employees around the
country with a more-limited
100 deals network of health-care provid-
90 ers. The retailer wanted to in-
clude only hospitals and doctors
80 with the lowest costs and high-
70 est-quality care.
The insurer turned down its
60
client’s request, and a major
reason was restrictive contracts
50
with hospital systems. A
40
spokeswoman for Home Depot
30 confirmed the account of the
situation and declined to com-
20
ment further.
10 Officials at Walmart a few
years ago asked the insurers
0
that administered its cover-
2000 ’05 ’10 ’15 age—Aetna Inc., UnitedHealth-
care and Arkansas Blue Cross
THE WALL STREET JOURNAL. and Blue Shield—if the nation’s
largest private employer could
UnitedHealthcare, a unit of remove from its health-care
UnitedHealth Group Inc., networks the 5% of providers
doesn’t include information with the worst quality perfor-
about hospitals owned by BJC, mance. The insurers told the gi-
the parent of the well-known ant retailer their contracts with
Barnes-Jewish Hospital and 14 certain health-care providers
others. didn’t allow them to filter out
“How can we keep costs specific doctors or hospitals,
down if we can’t even get an es- even based solely on quality
timate for care?” he said. “If measures.
you’re buying a car, they don’t A spokesman for Walmart
say, ‘with this one, you won’t confirmed the company had ex-
know how much it costs until plored such an approach. Aetna,
you check out.’ ” UnitedHealthcare and Arkansas
J.C. McWilliams, a vice presi- Blue Cross and Blue Shield de-
dent at BJC, said insurers’ tools clined to comment.
sometimes offer inaccurate in- Stuart Piltch, chief executive
formation and generally give a of Cambridge Advisory Group, a
narrow picture that doesn’t re-
flect the total cost of care. Pa-
health-care consulting and data
firm, approached Anthem and
tients can get cost estimates UnitedHealthcare a few years
from BJC directly, he said.
Hospital systems have also
ago on behalf of an employer in
the Milwaukee region. The em-
been snapping up other types of ployer was considering a net-
providers, including doctor work that would let employees
practices, clinics and outpatient pay less out of their pockets if
surgery centers, and raising they chose doctors and hospi-
these providers’ prices. tals selected based on quality
In many cases, insurer-hospi- and cost for particular types of
tal contracts allow hospitals to care.
move these new acquisitions The insurers said they
immediately to the hospitals’ couldn’t deploy such a plan
reimbursement rates—which “due to their contracts with the
are typically far more generous dominant player, which is Au-
for the same services. rora,” Mr. Piltch said, so the em-
In addition, hospitals often ployer wasn’t able to move for-
receive extra charges, known as ward. “The free market has
“facility fees,” meant to cover been distorted in an unhealthy
the extra costs associated with way,” he said.
care given in a hospital setting, Advocate Aurora Health’s Dr.
including regulatory and safety Nelson said in the statement,
standards that apply to hospi- “We are relentless in our pur-
tals. Hospitals can often impose suit of high quality and low cost
these fees after they acquire an in tandem, not [as] an either/or
off-site clinic or office. proposition.”
American Hospital Associa- —Melanie Evans contributed
tion executive vice president to this article.
 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.

THE WALL STREET JOURNAL. * * NY Wednesday, September 19, 2018 | A12A

GREATER NEW YORK

Residential Prices Top Pre-Crisis Peak
New York City houses,
apartments are 2%
above November 2006
levels, report shows
BY JOSH BARBANEL
A decade after the financial
panic of 2008, housing prices
in New York City have bounced
back and recently edged above
peak pre-crisis levels.
An analysis of long-term
sales trends by StreetEasy.com
found that sale prices for
houses and apartments across
the city are 2% above peak
levels in November 2006, and
28.5% above the low point in
November 2011.
It put the median resale
price of an apartment or home
across the five boroughs, from
tony Fifth Avenue co-ops to
small frame houses in neigh-
borhoods hard hit by foreclo-
sures such as Jamaica, Queens,
at $656,188 in July, exceeding
the 2006 peak of $643,255 in Still, overall New York City StreetEasy’s senior economist. cally underperformed the
January 2018. Rebound housing prices reached a 2006 The value of all residential stock market.”
Those who bought and sold The 2006 peak in NYC housing peak about four months after transactions in New York City The report cited the profit-
a New York City house or prices was passed in January. those in the rest of the coun- exceeded the $42.7 billion able sale of a large studio at
apartment after September try and hit bottom about four spent in 2006 only in 2016, ac- 88 Greenwich St., a 1929 art
2008, when the bankruptcy fil- Apartment and house-price months earlier. cording to data compiled by deco building that was con-
ing by Lehman Brothers set off index for the five boroughs New York City, with its con- the Real Estate Board of New verted to a condominium in
a financial panic, realized out- $700,000 centration of banks and finan- York. 2007. It was purchased from
size gains, the report found. cial-services firms, was hard In Manhattan, the $20.2 bil- the sponsor in 2010 near the
Those sellers scored gains hit by the financial crisis. But lion spent in 2008 was sur- bottom of the market for
of 33%, or 7.5% a year. 2006 peak the city also bounced back passed by 2013. $490,000 and sold five years
650,000
Four out of five of these faster than other parts of the The StreetEasy report later for $655,000 for 34%
sellers saw gains of at least U.S., as the economy and em- raised a question about the in- gain.
10%—enough to break even ployment grew at a faster pace vestment value of a home pur- In contrast, another studio
and cover transfer taxes, bro- 600,000 than the country as a whole. chase, especially when com- in a co-op at 244 Madison Ave.
kerage fees and other closing Manhattan, with its many pared with the outsize gains of near East 38th Street in Mid-
costs. wealthy residents, interna- the stock market in recent town Manhattan was pur-
Only half of those who 550,000 tional buyers and luxury hous- years. chased in 2007 for $575,000
bought in the two years before ing, was less dependent on Since the housing market in and sold in 2014 for $635,000,
the financial-services firm’s credit conditions. There pre- the city bottomed out in 2011, a gain of 10%, which works out
bankruptcy and later sold saw crisis prices peaked much the S&P 500 index has risen to a 1.3% annual return.
500,000
such a gain on their sale after later, in spring 2008. After a 125%, compared with a gain of Now, prices are showing
closing costs, the report ’06 ’08 ’10 ’12 ’14 ’16 ’18 freeze in luxury sales, prices nearly 30% in housing prices. signs of weakening in Manhat-
found. Source: StreetEasy Price Index pushed above that level by “Even for those who did tan and Brooklyn. “A cycle of
While Manhattan’s luxury THE WALL STREET JOURNAL. 2014. manage to time the market swift growth in New York
market beat to a different “The credit crisis that came well, the numbers are less at- home prices seems to be com-
drum, overall sale prices in New housing market collapsed as along with the financial crisis tractive when compared with ing to an end,” the StreetEasy
York City reported by Street- years of lax lending standards definitely hit the other bor- other investments,” the report said, citing a surge of
Easy closely tracked the pattern gave way to tightening credit, oughs more than it hit Man- StreetEasy report said. “New inventory that is likely to in-
across the country, where the and stagnating incomes. hattan,” said Grant Long, York City real estate dramati- crease this year.

Fashion Is Drawing Inspiration From Newark Weinstein

BY KIANA CORNISH Prosecutors
In 2012 Erika Hicks moved
to New York City, intending to Look Into

.
hone her skills as a designer in

ly
one of the fashion capitals of
the world.
After acquiring six sewing
Early Days
machines, three dress forms on BY CORINNE RAMEY
and an abundance of fabric
and trim, Ms. Hicks realized Manhattan prosecutors in re-
the space she could afford in cent weeks have contacted peo-
Brooklyn wasn’t going to ple who worked with Harvey
us l,

work. She tried Harlem, but Weinstein at Miramax in an at-

couldn’t find the inspiration tempt to gather evidence of the
al a
e
she needed. Then she headed embattled filmmaker’s alleged
across the Hudson River and prior bad acts, according to
visited Newark, N.J. people familiar with the matter.
ci on

“There were leather stu- Investigators from the Man-

dios, embroidery factories, hattan district attorney’s of-
and garment construction fice are planning a trip to Los
booming in Newark.” said Ms. Angeles to conduct interviews
Hicks, who is 29 years old. in the coming weeks, one of
er rs

She quickly found a home the people said. Investigators

there, joining a growing group have contacted at least half a
of designers who have for- dozen people who worked
saken ateliers in New York with Mr. Weinstein before he
DONNELL WOODSON (2)

m e

City for Newark’s lesser- left Miramax in 2005 to start

known fashion community. his own studio, Weinstein Co.
“There’s this underground The people prosecutors re-
m rp

fashion scene in Newark. It’s cently contacted don’t appear to

like a volcano,” Ms. Hicks said.
“There’s this tremendous en-
ergy, movement and elevated
conversations happening un-
be connected to the three
women who are part of the Man-
Models graced the runway earlier this month during the inaugural Newark Fashion Forward, which organizers said was designed to hattan district attorney’s case,
showcase the New Jersey city’s burgeoning fashion scene. A growing group of designers has left New York City for Newark. according to the people familiar
co Fo

der the radar.” with the matter. While evidence

On Sept. 7, Ms. Hicks joined
10 other designers to show-
case their lines at Newark
Fashion Forward, the city’s
first weeklong fashion event. It
took place at the same time as
the famed New York Fashion
Week, but the organizers and
the designers didn’t care.
“We wanted to be able to
give people an alternative,”
said Aisha Glover, president
and chief executive of the
in recent years. spotlight both Newark’s grow- of prior uncharged crimes typi-
Newark’s inaugural fashion ing fashion scene and the cally isn’t permitted at trial, un-
week kicked off with a recep- city’s ongoing development, der specific circumstances pros-
tion at Military Park, a his- Mr. Hall said. ecutors can use such evidence to
toric green space in the city’s “This event gave me the op- bolster their case.
downtown. It was followed by portunity to shine and expose Mr. Weinstein was arrested
an art and fashion exhibition my brand to those who might in May, and has been charged in
on Sept. 8 and a viewing the know my name but never had state Supreme Court in Manhat-
following day of “The Gospel the chance to see my work, tan with rape, predatory sexual
According to André,” a docu- while allowing the city to be assault and other crimes. The
mentary about former Vogue recognized as a fashion desti- charges arise out of alleged in-
editor at large André Leon nation,” Mr. Hall added. cidents with three separate
Talley. Newark was once known as women in 2004, 2006 and 2013,
n-

Newark Community Economic Marco Hall, a Newark-based a manufacturing center but legal documents say. Mr. Wein-
Development Corp. designer who was born and lost much of its population in stein has pleaded not guilty.
She described Newark Fash- raised in New Jersey, also par- the 1980s, said Brad Tuttle, Prosecutors’ interest in
ion Forward as another indica- ticipated in the Sept. 7 show. author of “How Newark Be- people from Mr. Weinstein’s
no

tion of the city’s revitalization,
which she said began about six
years ago but seemingly has
accelerated since Mayor Ras
Baraka took office in 2014.
Ms. Glover’s organization
doesn’t know the exact num-
ber of fashion designers based
in Newark, but estimates the
figure to be in the hundreds,
and notes that it has increased
His collection, “Bloom,” came Newark: The Rise, Fall, past more than a decade ago
represented a rose growing in and Rebirth of an American comes as his case appears to
the concrete jungle, and con- City.” impossible for any city in “It’s been a long, long, long be moving toward trial.
sisted of floral prints and rich “Crime rose steadily, build- America to compete with New process of decades of corrup- In New York, evidence of
tones of burgundy, lemon, ings and storefronts were York as a fashion hub, Newark tion and people giving up on prior alleged bad acts at trial
green and pink, while Ms. abandoned, the high-rise hous- has shown tremendous growth the place,” Mr. Tuttle said of is called Molineux evidence,
Hicks’s “Milele Atelier” line ing projects became magnets in recent years, with many Newark. “So if Newark could after a landmark 1901 decision
showcased bold colors, strong for crime and drug trade, and new residents driven toward somehow become better known by the state’s highest court. In
silhouettes, and classic wom- violence came as a result of it New Jersey by rising costs of as an emerging fashion hub, it its ruling, the court said intro-
enswear designs. all,” said Mr. Tuttle. living on the other side of the could have a very positive ef- ducing past acts for which a
The show was a way to While he said it is nearly Hudson. fect on the city as a whole.” defendant wasn’t charged as
evidence to support conviction
on a later crime could unfairly

Venture Funding Flows to City Tech Startups prejudice the jury. But the
judges laid out exceptions, in-
cluding to establish a motive,
intent or a common scheme.
BY KATE KING houseCoopers. Tuesday that it had raised $95 nentially, but it’s messy, it’s A judge typically either
Financial institutions may million to expand its business fragmented, and it’s buried in holds a hearing, asks for briefs
New York City startups be helping drive the invest- and hire more data scientists all sorts of systems,” Mr. Bax- or both to determine if Mo-
have been snapping up in- ment as they turn to technol- and machine-learning engi- ter said. “It’s very hard to pick lineux evidence will be allowed.
KEVIN HAGEN FOR THE WALL STREET JOURNAL

creasingly lucrative deals in
recent years.
While Silicon Valley contin-
ues to lead venture-capital
funding in the U.S., investors
are writing big checks to Big
Apple companies. New York
startups closed nearly 1,500
deals worth $12 billion last
year—nearly double the $6.3
billion in capital invested in
2014 for a similar number of
deals, according to the New
York City Economic Develop-
ment Corp.
About 850 deals have
closed so far this year, netting
$9.1 billion.
James Patchett, president
and chief executive of the New
York City Economic Develop-
ment Corp., said the city has
invested in technology proj-
ects such as cybersecurity,
blockchain and virtual and ar-
tificial reality. “This momen-
tum has brought critical new
ogy companies for assistance
with automation and data
management.
Data and technology com-
pany Enigma, which combines
public data with private client
information to help customers
with financial-risk manage-
ment, underwriting and phar-
maceutical safety, among
other things, has thrived in its
New York City location, said
CEO Hicham Oudghiri’s tech its co-founder and CEO, Hi-
firm Enigma has raised $95 cham Oudghiri. Nearly all the
million to expand it business. company’s clients are based in
New York.
investment to New York City’s “Having New York City as a
ecosystem, which ultimately home base, and getting close
has created critical new jobs and understanding how these
for New Yorkers,” he said. companies work, has been
The city’s maturing market very critical for us in the ear-
is helping boost the size of lier phase of the company,” he
deals as companies that got said in an interview. “I don’t
seed funding several years ago think we could have done this
secure more financing in later outside of New York.”
rounds, said David Silverman, Enigma, which was founded
a partner at Pricewater- seven years ago, announced
neers. The new funding also
will help the company open a
satellite office outside New
York, likely on the East Coast,
for data sourcing and acquisi-
tion, Mr. Oudghiri said.
“The lifeblood of the com-
pany is acquiring more and
more and more data,” he said.
Mr. Oudghiri declined to re-
veal Enigma’s valuation. He
said he considers data and
technology companies such as
Oracle and Thomson Reuters
to be the firm’s main competi-
tors. Representatives for Ora-
cle and Thomson Reuters de-
clined to comment.
One of Enigma’s investors is
MetLife Inc., which has been
looking for technology part-
ners for help in areas such as
data compliance and under-
writing, said chief digital offi-
cer Greg Baxter.
“There’s just this explosion
of data and it’s growing expo-
trends and figure out how the
data is connected.”
Other New York City com-
panies that have closed lucra-
tive deals this year include
Peloton Interactive Inc., which
makes video-streaming sta-
tionary bikes and raised $550
million in August. Letgo, a mo-
bile classifieds startup, se-
cured $500 million this sum-
mer, and Dataminr, which
analyzes social-media data, se-
cured $392 million in June.
The continued success of
New York City’s tech industry
will depend on whether entre-
preneurs can sell their compa-
nies and invest some of that
capital in startups, Mr. Silver-
man said. “Feeding that ecosys-
tem is extremely important,” he
said. “New York has had some
notable exits, but hasn’t had
what I’d call the mega-mega-
IPO. Something like that would
certainly be a huge boost.”
“In general, courts are very
careful about keeping the jury
focused on the acts actually
charged rather than allegations
of past conduct,” said Mark
Zauderer, a partner at Ganfer
Shore Leeds & Zauderer LLP.
The strategy of introducing
this evidence is considered by
legal experts to carry high risks
and potential high rewards.
The use of Molineux evidence
often is contested on appeal. In
the Weinstein case, the possi-
ble testimony of other women
has the potential to boost any
perceived weaknesses in the
accounts of the women who
are part of the charged con-
duct, legal experts say.
A spokesman for the Man-
hattan district attorney’s of-
fice declined to comment. Ben-
jamin Brafman, a lawyer for
Mr. Weinstein, said it is diffi-
cult to comment on a motion
that hasn’t been filed.
 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.

A12B | Wednesday, September 19, 2018 NY * * THE WALL STREET JOURNAL.

GREATER NEW YORK

METRO MONEY | By Anne Kadet
GREATER NEW
YORK WATCH
NEW JERSEY
Food-Vendor Competition Heats Up
Governor Presses Never mind
To Phase Out Tests the Emmys,
real New York-
Gov. Phil Murphy says his ers know the
mind is unchanged about phas- contest to
ing out a controversial standard- watch is this
ized school test despite legisla- weekend’s Vendy Cup competi-
tive concerns. tion. Following an outdoor af-
Mr. Murphy’s comments came ternoon of chow sampling on
Tuesday, a day after Education Governors Island, the award,
Commissioner Lamont Repollet given annually, recognizes the
testified before a joint Assembly city’s best food truck or cart.
and Senate committee consider- Franky Englezos, one of
ing the administration’s proposal five vendors competing for
to curtail the Partnership for As- the cup this year, has been
sessment of Readiness for Col- serving souvlaki in Astoria,
lege and Careers exams, com- Queens, for three decades,
monly known as PARCC tests. and is “pretty confident” he
Mr. Murphy’s fellow Demo- will take home the cup. This

SARAH BLESENER FOR THE WALL STREET JOURNAL

crats said they were concerned Saturday’s contest falls on the
about the phaseout and want 22nd of the month, “and 22 is
more discussions about the plan. my lucky number,” he says.
It is unclear how lawmakers The Vendy Awards, now in
could halt the proposals. its 14th year, feature food
Mr. Murphy is seeking to vendors from around the city
drop from six to two the num- who are nominated by cus-
ber of PARCC tests required in tomers. This year, 25 will
high school. compete in five categories in-
—Associated Press cluding Best Breakfast Vendor,
Best Rookie Vendor, and, of
CONNECTICUT course, the Vendy Cup. Come
Saturday, about 1,500 attend-
Second Man Charged ees paying $100 or more for Greek immigrant George Englezos, left, and Antonio Martinez prepared souvlaki in a food truck in the Astoria section of Queens.
In Fatal Teen Stabbing all-you-can-eat admission will
spend the afternoon sampling home,” Mr. Englezos says. While there is no prize homemade sauce,” he says. is new to them,” he says.
A second man charged in fare and voting on their favor- His customer base has money, the Vendy Cup is “Hot sauce, my sauce. I “They might not be able to
connection with the stabbing ites, including a People’s shifted over the years. He coveted for good reason. blended everything myself.” absorb right at this instant.”
death of a 16-year-old Connecti- Choice award for the best learned to greet patrons in Last year’s winner, Godshel- Monday through Friday, Mr. Mr. Thway, who grew up
cut boy has been ordered held overall vendor. Spanish, Italian, Portuguese, ter Oluwalogbon, says sales Alam sets up at 7 a.m., pre- in a small city in Myanmar

.
on $50,000 bail. The Vendy Cup winner is Arabic and Tibetan. The in- at his Nigerian food truck at paring 120 pounds of chicken and came to New York City

ly
Michael Cerrato, 20 years selected by five judges who flux of immigrants is good the corner of Second Avenue and six bins of yellow rice for in 1994, says his first job
old, was arraigned Tuesday in this year include food writer for business, he says, because between 44th and 45th the lunch rush. He works 15 here was selling hot dogs in
Enfield Superior Court on a hin- and nutritionist Marion Nes- every culture understands a streets in Midtown grew hours straight, until 11 p.m. the Port Authority Bus Ter-
dering prosecution charge re- tle and Bill Telepan, executive on kebab. “In China, Greece, in 40%, as tourists flocked to His regular customers, he minal. He eventually got a
lated to the Sept. 9 death of chef at Midtown’s Oceana. the Middle East, everyone sample his stewed goat and says, tell him he should have job with a jewelry whole-
Justin Brady. Mr. Englezos’s business can relate to beef or chicken sautéed gizzard. Now he has won already. “I will try to do saler, but his passion was
Mr. Brady was stabbed out- was founded in 1970 when on a stick,” he says. a lease on a space to open a well for them,” he adds. the flatbread he served at an
side Mr. Cerrato’s home in En- his father, George, a Greek He has a game plan for restaurant in Brooklyn. Finalist Myo Thway isn’t annual fun fair for his con-
us l,

field. Mr. Cerrato drove the sus- immigrant, bought a hot dog the contest, which raises MD Alam, a 2018 finalist, sure whether his menu will gregation, the Myanmar Bap-
pect, 18-year-old Shyhiem cart at the corner of 31st Av- about $100,000 from ticket runs Royal Grill Halal Food at work in his favor. His Bur- tist Church in Queens.
al a
e
Adams, to Hartford after the enue and Steinway Street, sales each year for the Street 44th Street and Sixth Avenue mese Bites cart, serving Five years ago, he started
stabbing and gave conflicting ac- where his souvlaki truck now Vendor Project, a nonprofit in Midtown with his wife, lunch in Long Island City, selling at street fairs. In
counts of what happened. serves lunch and dinner advocacy group. Hira. He says his customers Queens, is likely the only 2015, he was a Vendy Awards
ci on

Mr. Adams has been charged seven days a week. Mr. Engl- He plans to recruit friends nominated him thanks to rec- Burmese cart in town. He finalist. He lost. “To a french
with manslaughter and is being ezos, who grew up helping and family to help serve ke- ipes from his mother-in-law, worries that the dishes he fry truck!” he laments. This
held on $750,000 bail. His law- his dad, took over in 1999. babs straight off the grill who also is from Bangladesh. plans to serve—Ohno Kauk- year, he’s upping his game.
yer says he was bullied in “I was 26 at the time. Now rather than plating them in Mr. Alam points out a row of Swe chicken-coconut soup, “I’m going to flip my palata
school. I’m 45,” he says. And dad just advance. And he will load up sauces in his cart, which he keema palata stuffed flat- in front of everybody,” he
er rs

Mr. Cerrato’s attorney didn’t turned 84. “He stops in every everyone’s plate: “That way, squirts on containers of $6 bread and a mango salad says. “Show off a little bit.”
return a message Tuesday. morning, plays with the grill they don’t have room for chicken tikka masala over with fish sauce and fried gar-

alexa
—Associated Press a little bit, gets tired and goes anything else,” he says. rice. “Green sauce is my lic—are too exotic. “My food anne.kadet@wsj.com
m e

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

THE WALL STREET JOURNAL. Wednesday, September 19, 2018 | A13

LIFE&ARTS
YOUR HEALTH | By Sumathi Reddy

A 1950s
World Built to
Stir Memory
A new center for dementia patients re-creates a
town square in a test of ‘reminiscence therapy’

Clockwise from left:

Glenner patients gather
at Rosie’s Diner; a staffer
guides a woman to an
activity; 1959 Ford
Thunderbird; patient
Jaqueline Dwyer plays pool;
painting class. Bottom:

.
Pamela Givens leads patients

ly
in morning exercises.

T
Chula Vista, Calif. on
he two men, high-school buddies,
sit in a turquoise and white
booth at Rosie’s Diner, ribbing
each other like they are teenag-
us l,

ers at Sweetwater High School

where they played baseball together so
al a
e
many years ago. of Senior
A 1950s-era jukebox spits out tunes like Helpers, says
“Peggy Sue” by Buddy Holly. Vinyl records they hope to
ci on

and black-and-white pictures of celebrities have 200

like Elvis Presley and Audrey Hepburn line Town Squares

SANDY HUFFAKER FOR THE WALL STREET JOURNAL

the walls. across the
Now in their 70s, James Mann and Rich- country in the
ard Eshbach are actually in Glenner Town next five
er rs

Square, a new adult day-care center for de- years.

mentia patients that is like entering a time that fits the kind of memories that people Glenner is 9,000-
warp. The 11 storefronts that surround an in- have,” she says. “It doesn’t cure dementia, of square-feet with 24-foot
door park represent the time period from course, but it does provide a context where ceilings. It’s licensed for
m e

1953 to 1961, when most of the patients were these people have a better connection to 75 patients a day. Cur-
in the prime of their life. their past and to their sense of identity.” rently the facility has
Glenner Town Square opened in August Research on reminiscence therapy is more than 50 patients en-
m rp

and is believed to be the country’s first
memory-care facility built entirely around
the idea of reminiscence therapy, a therapy
that uses prompts from a person’s past—
such as music, movies and photographs—to
mixed. Dr. Berntsen’s most recent study rolled, though the number
tested a five-week Danish program in which of attendees fluctuates as
about half of 43 Alzheimer’s patients were patients can create their
assigned to weekly sessions in an authentic, own schedule depending
1950s-style apartment in a local museum, on their families’ needs. They are open for eras for different generations of patients.
co Fo

elicit memories and encourage conversation
and engagement. It’s a behavioral approach
to treating Alzheimer’s and dementia pa-
tients, often used in nursing homes in the
Netherlands and other countries, that is
growing in popularity as efforts to create ef-
fective drugs for the memory-robbing dis-
ease fail.
“We know dementia makes it hard for pa-
tients to remember the recent past, like the
last 10 years, whereas the older memories
are preserved better for a longer time, espe-
cially memories from childhood and early
adulthood,” says Dorthe Berntsen, a psychol-
n-
while the other half got standard care.
Most participants showed no improve-
ments in a series of cognitive tests done be-
fore and after the intervention. But they did
become better at talking about autobio-
graphical memories when triggered from
older objects.
A recent Cochrane review concluded the
effects of reminiscence therapy are inconsis-
tent and small in size. Still, it said that there
is some evidence it can improve quality of
life, cognition, communication and mood.
Glenner Town Square is a partnership be-
tween the George G. Glenner Alzheimer’s
half or full days every weekday.
The program is mostly geared toward pa-
tients in the early to moderate stages of de-
mentia, who are typically living with family
or at home with caregivers. Their family
members or caretakers drop them off.
“We really looked to bring people back to
where their fondest memories are, typically
between the ages of 10 and 30,” says Scott
Tarde, CEO and executive director of Glenner
Centers, noting that the average participant
is about 82 years old. The facility hasn’t
been open long enough to assess the bene-
fits of the program, but is participating in
Staff work in a “City Hall” office space.
Among them: Susie Heavilin, a 69-year-old
former accountant who was diagnosed with
Alzheimer’s last year and believes she’s their
bookkeeper. “They print out invoices for
her,” says Sheri Berg, her daughter. “It’s re-
ally given her a sense of purpose. It’s really
changed everything for us.”
On a recent day, activities buzzed. There
was a painting class in the diner while in the
library Marilyn McPhie, a storyteller, talked
about trains and railroads. At one point she
passed around a penny flattened by a train.
Mike Casey, a 78-year-old retired orthope-

ogy professor and head of the Center on Au-
tobiographical Memory Research at Aarhus
University in Denmark. Her studies have
found that dementia patients can engage
no
Family Centers—a California-based nonprofit research on its effectiveness. dic surgeon who was diagnosed with Parkin-
organization—and Senior Helpers, a national The setting—an idealized vision of the son’s disease and dementia two years ago,
in-home senior care provider. 1950s that omits explicit references to soci- cradled it affectionately.
The partners have plans to franchise the etal injustices that civil rights and later fem- Later, Dr. Casey, who was at Town Square

more when they are exposed to objects from
the past. “You want to have an environment
Trying Reminiscence
Therapy at Home
Experts say reminiscence
therapy can be done at home
with dementia patients, using
old photos, music and other
props.
Mindy Baker, director of ed-
ucation at George G. Glenner
Alzheimer’s Family Centers,
says looking at old pictures is a
great way for family members
to connect. “Think about what
stories your loved ones like to
retell, special events, or accom-
plishments that happened in
their life,” says Dr. Baker, sug-
gesting photos of the house
they grew up in, family mem-
concept and open up similar centers across
the country. Peter Ross, CEO and co-founder
bers, weddings and trips. Keith Anderson, director of
She suggests enlarging pho- the Montana Geriatric Education
tos and making a memory book Center at the University of Mon-
together. Keep it simple with tana, says the exercises should
one or two photos per page and facilitate memory rather than
large print to label photos. challenge it.
Dr. Baker says doing a fa- He warns against correcting
vorite activity or hobby to- dementia patients. “Use sugges-
gether is also helpful. She sug- tions when their memory does
gests making an old favorite not align with the facts,” says
recipe together and using old Dr. Anderson. “In some cases,
mixing bowls or measuring you can simply go along with
cups, if you have them. “As you the older adults’ recollection and
are doing the activity, the support their perspectives on
smells, tastes, visuals and con- the past.”
text will likely trigger some Pamela Givens, a reminis-
memories,” she says. cence therapy guide at Glenner
Music is also a great way to Town Square, says they always
trigger memories, experts say, refrain from asking patients, “Do
both playing old songs or taking you remember?”
out an instrument they played in “We try to stay away from
the past. that word: ‘remember,’” she says.
inist movements battled against—may not
resonate for all patients, who include immi-
grants from China, the Philippines and Latin
America, as well as African-Americans. The
son of one Chinese immigrant, for instance,
says his mother probably doesn’t relate
much to the memorabilia and items.
Mr. Tarde says the center tries to incorpo-
rate activities that relate to other cultures,
such as playing games like Loteria, a Mexi-
can game similar to bingo. He says they “are
very sensitive and aware of history and ab-
solutely will recognize history, civil rights
and cultural days, weeks and months” with
different activities that acknowledge the di-
versity of their patients.
Reminiscence therapy is not expected to
fully restore patients’ capabilities, but par-
ticipants may show glimpses of their former
selves, says Mindy Baker, director of educa-
tion at Glenner Centers. Patients are placed
in groups as they rotate through storefronts
led by staff in different activities. Patients
who require more assistance pay $65 for
half-a-day or $95 for full-day care. Those in
the earlier stages of dementia who don’t re-
quire medications pay $60 or $85.
The center of the village is a small, indoor
park, with natural skylights, and artificial
grass for a small putting green and bocce
court. Mr. Tarde points to a real 1950s San
Diego police call box, a pay phone that calls
the front desk and a restored 1959 black
Ford Thunderbird car, which patients can get
in and even open the hood to tinker with it.
There is a library with a card catalog, a
1950s National Geographic set and Monopoly
and Scrabble games circa-1930. A re-created
home space has an original Philco Fridge
and a record player.
At the movie theater, “The Greatest Show
on Earth” plays in 15-minute clips. At Joy’s
department store, patients can shop and
even bring home a fur coat and bowling
shoes. And at the Gone Fishin’ Pub there’s a
pool table, a mini-basketball court and darts.
The storefronts use graphics and pictures
that can be changed to re-create different
for the first time, called the session “re-
markable.” (He is one of the few Glenner pa-
tients who is sufficiently aware of his condi-
tion to be able to reflect on the treatment.)
He recalls living two blocks from a train sta-
tion in St. Louis, where he grew up.
The storefronts represent the
time period from 1953 to 1961,
when most of the patients were
in the prime of their life.
“I can remember vividly sneaking down
there and putting my ear on the rail and you
hear a train coming, look down and see a
train that’s a mile down but looks like it’s 8
feet away,” says Dr. Casey.
At a music and theater class later in the
day, Trevor Gibson, a local piano player,
leads the multilingual group in songs rang-
ing from “La Bamba” to “Cielito Lindo.” Two
women get up and spontaneously start ball-
room dancing together.
Meanwhile, at the local pub an employee
leads a group of patients in a game of penny
poker. And in the home space, a woman,
alone, watches an iPad with black-and-white
episodes of “I Love Lucy.”
Mr. Mann and Mr. Eshbach hadn’t been in
touch for decades until they bumped into
each other at a local Alzheimer’s disease
support group a couple of years ago, says
Marsha Mann, Mr. Mann’s wife.
Her husband is diagnosed with mild cog-
nitive impairment, a type of memory loss.
Mr. Eshbach was diagnosed with Alzheimer’s
in 2016. The two now go to Town Square to-
gether once a week.
Ms. Mann noticed an “elevated cognition”
in her husband after he went to Town
Square. He belted out a Leonard Cohen song.
“I just felt like he was more conversant,” she
says. “The singing, it just warmed my heart.”
 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.

A14 | Wednesday, September 19, 2018 THE WALL STREET JOURNAL.

LIFE & ARTS

DAVID WALTER BANKS FOR THE WALL STREET JOURNAL

Cherrill Meyer’s 1969 Volkswagen Beetle, photographed near her home in Los Angeles. Ms. Meyer, standing in the VW below right, and her friend, Pam Burk, next to her, drove the car for three months
around Europe in 1969. A shot of a stop in Switzerland on that trip, below left.

MY RIDE | By A.J. Baime

A Beetle’s Summer of ’69

Cherrill Meyer went to Germany to pick up her bug for an epic road trip—and still drives it today

.
ly
Cherrill Meyer, 69, a retired corporate- at the factory in Wolfsburg, West Germany, I Switzerland, when Neil Armstrong walked
communications director from Los Angeles, could save $700. Then I could use the $700 on the moon. People wanted to hug us be-
on her 1969 Volkswagen Beetle, as told to to travel. cause we were American.
A.J. Baime. We ordered the car at a local VW dealer-
on Sometimes other American tourists would photo shoot, we reunited in Baby Cham. As
My mother was British, and she drove ship, and in the summer of ask us for directions. Other times they would we drove to the beach where the photogra-
ambulances during the Blitz in World 1969, my friend Pam Burk ask, “Where are your parents?!” pher was waiting, we laughed at how small
War II. She taught me to and I flew to Europe. We We ended up shipping the car through and loud the car felt. Pam said, “I can’t be-
drive stick shift were 20 years old, and we Bremen in Germany to the port of Los Ange- lieve we traveled for over three months in
us l,

on streets around had known each other les, and for the last 49 years, I have kept this thing with all our luggage!”
our home in since we were 6. We took this car. It has been in the parking lot at ev- The Beetle now has 123,000 miles on it.
al a
e
Westchester, Calif. a train from Berlin to the ery job I have ever had. When I drive it, Baby Cham will turn 50 years old next year
When I was old Wolfsburg factory near baby boomers stop to listen to the engine, and it is still running strong.
enough and had the East German border, because it brings back so many memories
ci on

saved enough spent two hours filling for people of my generation. Contact A.J. Baime at
money to buy my out paperwork, then My friend Pam still lives near me. For this Facebook.com/ajbaime.
own car, Volkswagen some big doors opened
Beetles were every- and out popped my car.
where. It was July 4, 1969.
er rs

[Volkswagen began We spent over three

producing its first ver- months traveling through Germany, Hol-
sion of what became land, Austria, France and Switzerland. We
known as the Beetle in the 1930s. Last week named the car Baby Cham after a Cham-
m e

the company announced it would cease pro- pagne cocktail that we had along the way.
duction of its latest Beetle incarnation.] All through that summer of 1969, we lis-
A new Beetle cost about $1,700, and I had tened to news on Armed Forces Radio. So
m rp

that much money. My father did some re- much happened: the Manson murders, Chap-
search and learned that if I picked up the car paquiddick, Woodstock. We were in Bern,

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THE WALL STREET JOURNAL. Wednesday, September 19, 2018 | A15

LIFE & ARTS

ART REVIEW

A Celebration
Of the Weird
The brief Imagist movement looks perversely profound today
and carries with it an art-historical gravitas.
iary vitrine material as part of the art.)
BY PETER PLAGENS
The core group of Imagists called itself
the Hairy Who and consisted of Jim Nutt,
Saratoga Springs, N.Y. Gladys Nilsson, Karl Wirsum, Art Green, Jim
‘WEIRD” IS A WORD that’s lost a lot of

ARTHUR EVANS/TANG TEACHING MUSEUM AT SKIDMORE COLLEGE (2)

currency over the past couple of decades.
Things that used to mark a person as some-
one who played outside the lines—tattoos,
facial piercings, and clothes that make
wearers look as if they’d just escaped a
burning building—now wax normal. Even
the official slogan of the Independent Busi-
ness Alliance of Texas’ capital city is “Keep
Austin Weird.”
Back in the day, however—in Chicago for
about 15 years starting in the mid-1960s—a
style of art called Imagism was genuinely
weird: mostly a prickly kind of figurative
painting and drawing, a mixture of cartoon,
faux-naiveté and Surrealism that looked to
us devotees of more stately mainstream
modernism from New York and L.A. like a
kind of Dr. Seuss for rebellious adolescents.
That it might have been, but here in the 21st
century the style looks perversely profound
and carries with it an art-historical gravitas.
Both qualities are on view in “3-D Do-
ings: The Imagist Object in Chicago Art,
1964-1980.” The show, at the Frances
Falconer and Suellen Rocca. They were
joined, off and on in exhibitions and under
art-critical umbrellas, by the likes of Roger
Brown, Ed Paschke, Christina Ramberg, Bar-
bara Rossi and Ray Yoshida. They all liked
to puncture fine-art balloons of pretense
with jokes and puns. But, more than that,
they fancied folk and outsider art, and al-
most maniacally collected inspirational ob-
jects at flea markets.
“3-D Doings” is a wonderful show. First,
it’s lovingly installed in one airy gallery of
Antoine Predock’s superb building. Second,
the exhibition includes, as any good mu-
seum show must, several works that are
top-drawer regardless of pleading a spe-
cial case, in this instance that Imagism
was at once highly personal and rigorously
disciplined. Mr. Wirsum’s three 6-foot-tall
1972 psycho-mechanical stick figures, Installation views of the exhibition, with Red Grooms’s ‘City of Chicago, Arch Element’ (1967-68),
made of wood painted with acrylic and above, and Karl Wirsum’s ‘Mary O’Net,’ ‘Chris Teen’ and ‘Nurse Worse’ (all 1972), below
clothed, as it were, in custom dresses, are
just about genius, even with their groaner rolling hills and silhouetted trees, on a for- cago, it doesn’t in one that’s supposed to be
titles (“Mary O’Net,” “Chris Teen” and mat that’s reductively the reversed shape of of it. Mr. Grooms isn’t a Chicago artist, and
“Nurse Worse”). that Southern state. The beauty part is that he isn’t an Imagist; he’s closer to, say, James

.
Young Tang Teaching Museum and Art Gal- Better still is Brown’s 1974 “Autobiogra- if seen head-on the bottom edge would be Rosenquist than he is to Roger Brown.

lery at Skidmore College, contains about
70 works from the period. (The exact num-
ber depends on whether you count auxil-
phy in the Shape of Alabama (Mammy’s
Door).” It’s an oil painting, with one of
Brown’s patented simplified landscapes of
on
us l,
ly
straight across, but from slightly above—the Fortunately, the edge and energy of the
average viewer’s standing perspective—a rest of “3-D Doings” overcome Mr. Grooms’s
horizontal protrusion of a lake with a boat work. We can see Imagism clearly as a
on it constitutes that little tag where Mobile mode of art-making in which the big art-his-
meets the Gulf of Mexico. torical battles concerning
If that isn’t enough clev- realism and abstraction
erness—and Imagist clev-
erness is a good thing—a
In the movement, begun mean nothing, but where
the little rules of care

mirror on the floor re- in the mid-1960s, the and craft mean every-
veals that the bottom side
rules of care and craft thing. A quarter of this
al a
e
of the work depicts a gui- teaching museum’s atten-
tar (the lake being half meant everything dance consists of stu-
the body and the rest of dents and a goodly part
ci on

the underside the neck). of the rest comes from

“3-D Doings” is not, the surrounding commu-
however, perfect. It takes the idea of the nity. That “3-D Doings” looks like the
third dimension rather casually. Much of the world’s greatest-ever student show—that is,
work is simply two-sided flat art, or a nomi- an exhibition of artists passionately and
er rs

nally voluminous object such as Ms. Rossi’s
puffy “Comforter (Armour Defeat)” from
1970. And there are taxonomic gaffes in the
accompanying explanatory material (there is
m e
honestly doing their own thing as if bliss-
fully unaware of the latest from Manhattan
or Berlin—is perhaps its greatest virtue.
Ezra Pound said that poetry is “news that

no catalog). Imagism is miscategorized as a stays news.” In “3-D Doings,” the weird-

species of Pop Art, and a brochure says that ness—the eccentric visual poetry—of Imag-
“unlike the Chicagoans, none of the best- ism indeed stays weird.
m rp

known New York Pop artists made signifi-

cant bodies of sculptural work”—as if Claes 3-D Doings: The Imagist Object in Chicago
Oldenburg’s and Roy Lichtenstein’s never Art, 1964-1980
existed. Frances Young Tang Teaching Museum and Art
Also, there’s the central presence of Red Gallery at Skidmore College, through Jan. 6, 2019
co Fo

Grooms’s huge, quite literal “City of Chicago,

Arch Element” (1967-68). As much as the Mr. Plagens is an artist and writer in
work would fit into an exhibition about Chi- New York.

ART REVIEW

GAIL ALBERT HALABAN’S VOYEURISTIC BEAUTY

to Paris by Le Monde. A woman in
n-

BY WILLIAM MEYERS
a robe with a black-and-white cat
in her lap sits in the top-floor
Rochester, N.Y. apartment of an ancient building
THE FUTURE LIES behind us; Gail on the Rue de Douai. It is evening,
no

Albert Halaban’s “Out My Window” but Ms. Halaban’s Phase One, a

project is as conceptual as contem- professional 100-megapixel camera,
porary arts projects are (alas) ex- captures the age-related details of
pected to be, but its modus ope- weathering with the loving atten-
randi takes up practices from the tion of Eugène Atget. On the Rue
early days of photography. In the Jouye-Rouve we peer in on a
19th century, Julia Margaret Cam- woman in the kitchen holding a can
eron, Henry Peach Robinson, Oscar of Campbell’s soup. (In Paris?) The
Gustave Rejlander and other pho- peeling paint on the wall between
tographers set up elaborate tab- the two windows is in sharp focus.
leaux vivants as their subjects. Ms. In Rome, the scene is animated
Halaban (b. 1970) also stage-man- by eight birds flying in the space
ages tableaux vivants; she arranges between the camera and a building
her subjects in the windows of one in which a man stretches in the
building so they can be photo- window. In Venice, a gondola
graphed from the window of a glides past a palace through whose
building across the way. She has elegant windows we see a family
been doing this for over a decade moving in. There are pictures from
and on several continents, publish- Buenos Aires, from Istanbul and
ing and exhibiting the pictures from the Dutch city of Utrecht.
from individual cities, but the The venerable practice of tableaux
GAIL ALBERT HALABAN

George Eastman Museum show is vivants was further modernized

the first time her work from multi-
ple cities can be seen together and
compared.
Ms. Halaban’s intentions are no-
bler than mere voyeurism; in fact,
there is nothing in the least sala-
cious about her make-believe Peep-
ing Tomism. What there is is an in-
tense curiosity about what goes on
among strangers. She was familiar
with photography because her
mother made her a pinhole camera
when she was a child; later, a job
after college at a pediatric psychi-
atric hospital filming family inter-
actions so fascinated her that, in-
stead of applying to medical
school, she went to Yale to study
art. The windows project began
while she lived in the Chelsea
neighborhood of New York. She
and her family were celebrating
her daughter’s first birthday with
cake and candles when a bunch of
balloons was delivered to her
apartment with a note: “It has been
Gail Albert Halaban’s ‘Rue de Douai, Paris-9e’ (2013)
nice watching your baby grow up,
congratulations on the birthday.
We are your neighbors across the
way.” She realized people could
feel involved with strangers, and
set about recording such relation-
ships.
Four of the 18 pictures in the ex-
hibition are from New York neigh-
borhoods. A Chelsea picture looks
into a dance studio where two
women—one in red, one in black—
are practicing. The photograph
from the Upper East Side, shot at
dusk, is more complex: Distant
buildings take up two-thirds of the
image. In the building on the right,
windows in seven apartments are
lighted and we see women holding
children in two of them. Women
were more amenable to working
with Ms. Halaban and more avail-
able than men, and it is women in
various poses who are seen in
three other windows. The picture
of a children’s party in the Flatiron
district looks into the apartment of
Ms. Halaban’s friend David Levin-
thal. The woman in black seen
through the window on the right is
Ms. Halaban herself: Technology
lets you do this. (Coincidentally,
Mr. Levinthal’s photographs are
also being exhibited now at the
Eastman Museum.)
Ms. Halaban consults with the
people who live in the viewing
windows about what they most
with a picture from Seoul where
Ms. Halaban was not physically
present: An assistant set up the
camera and the photographer ma-
nipulated the camera and posed
the young woman reading on a
window ledge via Skype. The at-
frequently see their neighbors do- tention Ms. Halaban brings to the
ing, and then poses the subjects details of composition and expo-
accordingly. The pictures suggest sure make viewing her pictures
narratives as to who the subjects pleasurable, but a troubling fris-
are and what they are doing, but son remains: Are we intruding
she realizes false narratives gener- voyeurs or just concerned neigh-
ated by viewers of the pictures bors checking up on familiar
may be more interesting. The pro- strangers? And if the whole thing
cess of arranging a picture—mak- is a setup, does it matter?
ing the necessary contacts and
getting consents, setting up the Gail Albert Halaban: Out My Window
shoot—brings the neighbors into George Eastman Museum, through
actual relationship with each Jan. 1, 2019
other, and has led to at least one
marriage. Ms. Halaban considers Mr. Meyers writes on
this social aspect an important photography for the Journal. See
part of her project. his photographs at
After her New York book was www.williammeyersphotography.
published, Ms. Halaban was invited com.
 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.

A16 | Wednesday, September 19, 2018 * * THE WALL STREET JOURNAL.

SPORTS
NBA

A Mystery of Modern Genetics

DAVID RICHARD/ASSOCIATED PRESS

Shawn Bradley is 7-foot-6. A new study of his genome offers an explanation for his unusual height.
BY BEN COHEN

THE COUNT A GENETICIST named John

Kauwe took his window seat on a

BRADY’S
small plane a few years ago when
he looked up at the man next to
him and realized he knew him

LATEST
from college.

FROM TOP: JOHN DISCHER/ASSOCIATED PRESS; JOHN MCDONOUGH/ICON SMI/ZUMA PRESS

“I recognized him because I’m a
BYU alumnus and BYU faculty
member,” Kauwe said.
TARGET It also helped that Kauwe’s
neighbor was 7 feet 6 inches tall.
Shawn Bradley, one of the big-
gest NBA players in the history of
basketball, folded one leg under
BY MICHAEL SALFINO
Kauwe’s seat and dangled his
other leg in the aisle of first class
THE PATRIOTS’ passing game as he fell into an easy conversa-
has looked remarkably average tion with his neighbor before take-
after two games. Josh Gordon off. It was unusual for Bradley to
is the next man up in the chat with strangers, but there was
team’s search for a receiver something about Kauwe that made
who can click with quarterback him comfortable. He asked Kauwe
Tom Brady like Randy Moss what he did for a living. Kauwe ex-
did. In 2007, Brady and Moss plained that he specializes in ge-
hooked up for 23 touchdowns. netic markers of Alzheimer’s dis-
Gordon’s 117.6 yards per game ease, but said he studies all kinds
in 2013 is the third highest of genetic traits. And there was
since the 1970 AFL-NFL merger, one that had long fascinated Brad-
according to Pro-Football-Refer- ley, who played for the Sixers,
ence. The catch? Gordon, pic- Nets and Mavericks during 12 sea-
tured above, has played only 11 sons in the NBA. “My career is not studying Shawn Bradley was the No. 2

.
games since his best season. “I’ve always wondered why I’m the genes of height,” he said. overall pick in 1993. Inset, Bradley

ly
Just this year, the Patriots so tall,” he said. “I’m trying to cure Alzhei- with Shaquille O’Neal in 2002.
tried Eric Decker (three 1,000- It turned out he was sitting next mer’s disease.”
plus yard seasons) and ex-Eagle to someone who could help satisfy But then the Genetic Inves- portant that would be thinking
Jordan Matthews (997 yards his curiosity. Kauwe told him that on tigation of Anthropometric about cancer,” he said.
and eight TDs in 2015). Neither studying outliers was a useful Traits Consortium—the GIANT The researchers would have
even made it out of training method in his field. Bradley agreed consortium for short—identi- known simply by looking at his
camp, similar to the fate of ex- to take part in one of Kauwe’s ge- fied more than 20,000 single- DNA that he would be tall.
Colt Reggie Wayne in 2015. netic studies by the time their plane nucleotide polymorphisms While there are other factors
us l,

Receivers who starred else- had left the tarmac. (SNPs) that influence height in that determined exactly how
where yet failed to amount to The results of Bradley lending a series of groundbreaking tall he is, they could have pre-
al a
e
much of anything in New Eng- his extremely large body to science studies. Kauwe read those pa- dicted that he would be an out-
land include Joey Galloway were published this month in the pers and thought of Bradley. lier. “We’d be able to tell that
(10,950 career receiving yards) International Journal of Genomics The latest advances in he would be way, way, way out
ci on

and six-time Pro Bowler Chad in a study that helped solve a mys- height genomics was all the on the extreme of height,”
Johnson. The 11 wideouts with tery of modern genetics. context his team needed to un- Kauwe said. In their paper, they
at least one 900-plus yard sea- Bradley was not tall because of derstand their subject’s DNA. report how extreme: “Mr. Brad-
son with another team signed any genetic disorders. He was tall They compared Bradley’s geno- ley’s height is 8.6 standard de-
in the post-Moss era have aver- because of an uncommon blend of type with thousands from the viations above the average
er rs

aged just 15 catches and 224 common genes. “Shawn had this Alzheimer’s disease Neuroim- height for U.S. males,” they
yards for the Patriots. Only one, incredibly unique combination of aging Initiative and one study wrote, “putting him in the
Brandon Cooks, topped 1,000 genetic variants,” Kauwe said. “Any of memory in local Cache 99.99999th percentile.”
yards. He was traded to the one of them can be carried by any County, Utah, to create a Bradley is the first person
m e

Rams this off-season after just one of us. But he happens to have “height score” for each sub- thanked in the acknowledg-
one season in New England. a whole lot of the ones that make ject. Bradley’s genetic height ments section of the paper, and
you taller and very few of the ones score was off the charts. he may soon have a permanent
m rp

Failure to Launch that make you shorter.”

Since 2009, receivers who starred
elsewhere before joining the Patriots:
PLAYER/YEAR
“He just hit the jackpot,” added
What made it especially remark-
able, though, was how unremark-
“It’s less than 1 divided by the
number of stars in the galaxy,”
residence in a BYU lab: Kauwe
promised his research assistants a
Mark Ebberts, one of his co-au- able it was. There are thousands of Kauwe said. life-sized cutout of Bradley for their
thors. SNPs, and every one of them has a The researchers weren’t inter- laboratory. He’s still working on
REC-YDS-TD Kauwe wasn’t immediately able small effect on height. Bradley was ested in Bradley’s genome only be- finding a photo of high-enough res-
co Fo

Brandin Cooks 2017 65-1,082-7 to tell Bradley why he was so tall. unusual because he had lots of lit- cause he was really, really tall. olution that they’re not staring at a
Kenny Britt 2017 2-23-0 After that flight, Bradley had tle mutations that added up. “He’s They believe what they found could pixelated NBA player every day.
Michael Floyd 2016 4-42-1 blood taken in Kauwe’s office, and just a normal guy who’s really, re- have implications beyond the realm He’s also still working on finding
Donté Stallworth 2012 1-63-1
BYU’s geneticists extracted and se- ally tall,” Kauwe said. of basketball. “Exceptional outliers people who might have similar
quenced his DNA. But even then, When they finally told Bradley for height and other phenotypes genes to the guy with a cardboard
Brandon Lloyd 2012 74-911-4
Kauwe and his co-authors could why he was so tall, the basketball remain intriguing because their statue. “If Shaq or Yao Ming want
Chad Johnson 2011 15-276-1 only tell him they didn’t find any star was curious about the proba- rarity may present exciting genetic to come and let us sequence their
Joey Galloway 2009 7-67-0 rare genetic mutations. There bility of anyone born with his par- insights,” they write. If they can DNA,” Kauwe said, “we’re game.”
Source: Pro-Football-Reference wasn’t enough known about height ticular genetic combination. It was identify extreme traits in DNA, Bradley said the study has al-
Note: Receivers with at least one 900-yard genes back then to make any more 1 in 10 to the 30th power. Bradley Kauwe said, they might be able to ready changed his life in at least
receiving season for another team. Reggie
Wayne (2015), Jordan Matthews and Eric specific conclusions. Kauwe was didn’t know what that meant. “And spot certain diseases before they one way: He now talks to people on
Decker (2018) never played a game for Patriots. also busy with his day job. I love math,” he said. strike. “You can imagine how im- airplanes.
n-

Weather The WSJ Daily Crossword | Edited by Mike Shenk

Shown are today’s noon positions of weather systems and precipitation. Temperature bands are highs for the day.
50s 40s <0 1 2 3 4 5 6 7 8 9 10 11 12 13 64 Provoking 28 Book whose last
40s
d t
Edmonton 40s
word is “Amen”
no

V
Vancouver C ary
Calgary
0s 14 15 16 65 Farm female
60s 10s 66 Give a careful 29 Chophouse cut
Seattle ip
Winnipeg 50s 17 18
50s 20s examination, say 30 Radius neighbors
50s 60s
t
Montreal 30s 19 20 21 22 67 Enjoy slowly, as a 31 Barista’s
Portland l
Helena 60s
Bismarckk
50s ttawa
Ottawa 40s 23 24 25 beverage concoction
Eugene
70s Billings A g t
Augusta
60s Mpls./
p / . Paul
Mpls./St. Pa T t
Toronto A bany
b
Albany t
Boston 50s Down 33 Big name in
i
Boise 26 27 28 29 30 31 32 33 34
Siouxx Falls
F ll artford
Hartford 60s 1 Apple head Tim health insurance
50s P
Pierre 70s Milwaukeek t
Detroit ff
Buffalo 70s New ew York
Y k
Ch g
Chicago 70s 35 36 37 34 Chemical
80s Reno es Moines
Des C
Cl l d
Cleveland Philadel
hil d lphhi
Philadelphia 2 Pacific predator
y
Cheyenne 80s Pitts b
Pittsburgh h 80s 80s 38 39 40
substance
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Salt L City
City Omahah p i gfi ld
Springfield 3 Justice Dept.
an Francisco
San i Denver Ch l t
Charles
Charleston ashington
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Washington DC
D.C. 90s worker 36 Fiona, in the
Topeka d p
Indianapolis 41 42 43
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Richmond d 100+ “Shrek” films
Las 90s C d
Colorado Kansas St.. Louis Louisville
L
Lou ill 4 When tripled, a
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Springs hit
Wichita City
h ill
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l igh
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dance move 39 Expected
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Angel
Los Angeles 90s Ch l tt
Charlotte behavior
70s Santaa Fe
F Memphis hi 47 48 49
100s Phoenix
Phh Ab q q
Albuquerque Oklahoma City C b
Columbia 5 1967 Paul
San Diego Little Rock Atl t
Atlanta
Warm Rain
Newman film 40 Vowels that look
90s Tucson 50 51 52 53 54 55 56 57 58
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Dallas Birmingham like consonants
F . Worth
Ft. Worth Cold 6 Pigeon housing
P
El Paso T-storms
Jackson
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Mobile Jacksonville 59 60 61 62 46 Chris of TV’s
30s 80s A ti
Austin 90s 7 Farm team “The Middle”
Houston Stationary Snow
40s l d
Orlando 63 64
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Tampap
8 Lighting lover, for 48 Epoxy, e.g.
80s an Antonio
San A t i
50s Showers Flurries 65 66 67 short
Honolulu
l l 80s Miami 49 Abbr. before
A h g
Anchorage
60s 70s 9 Homily topic Grant or Lee
Ice
BORDER LINES | By Andrew J. Ries 10 Benjamin 50 “Giant” star
U.S. Forecasts City Hi
Today
Lo W
Tomorrow
Hi Lo W City Hi
Today Tomorrow
Lo W Hi Lo W
Across 26 Make baby food, 45 She played June 11 On the fritz 51 Middle name at
s...sunny; pc... partly cloudy; c...cloudy; sh...showers; 1 Plane section perhaps to Joaquin’s 12 Carrier’s Menlo Park
Omaha 94 75 pc 87 59 t Frankfurt 85 57 t 84 62 pc Johnny
t...t’storms; r...rain; sf...snow flurries; sn...snow; i...ice 29 Feature of many employer, for 53 Coll. kin
Orlando 92 75 pc 90 74 t Geneva 83 59 t 84 57 s 6 Swipe
Today Tomorrow Philadelphia 81 64 pc 75 65 pc Havana 88 74 t 90 74 t Pennsylvania 46 Gilder’s unit short
City Hi Lo W Hi Lo W Phoenix 90 77 pc 98 79 t Hong Kong 88 78 pc 88 79 pc 9 “To Kill a 54 Nota ___
Dutch hex signs 47 Pitching staff, 13 Georgia ___
Anchorage 58 48 pc 58 44 c Pittsburgh 81 64 pc 85 69 s Istanbul 79 70 s 80 69 pc Mockingbird” 55 Like a buyer’s
Atlanta 92 71 s 91 69 s Portland, Maine 68 52 pc 64 56 pc Jakarta 93 77 c 92 76 c narrator 32 Edible tuber of metaphorically 15 Old Algerian market
Austin 93 73 pc 89 75 t Portland, Ore. 72 53 pc 70 53 c Jerusalem 82 63 s 82 64 s South America rulers
Baltimore 82 64 s 78 65 pc Sacramento 88 58 s 92 57 s Johannesburg 89 54 s 85 50 pc 14 Accepted 49 Blustery talk 56 Commotion
Boise 75 45 s 72 47 s St. Louis 96 77 s 95 76 s London 73 59 pc 71 52 c doctrine 35 Newscast bit 21 Squirm in pain
50 Check line 57 Cinerarium array
Boston 68 59 pc 67 61 pc Salt Lake City 82 51 s 75 48 s Madrid 88 62 s 89 62 pc 36 Flattened at the
Burlington 69 52 pc 71 62 sh San Francisco 71 54 pc 76 54 s Manila 87 79 t 90 78 t 16 Unavailable 52 Primes, in 23 Big hauler 58 Sheaf unit
Charlotte 88 67 s 86 65 s Santa Fe 85 52 t 76 48 t Melbourne 58 40 sh 62 46 pc
poles
17 It has eight relation to 25 Blunted weapon 60 Ice cream maker
Chicago 81 73 r 91 73 pc Seattle 68 54 pc 65 56 sh Mexico City 74 57 t 76 57 pc
feet 37 Fix natural numbers,
Cleveland 80 70 pc 87 75 pc Sioux Falls 74 60 r 69 47 sh Milan 84 64 pc 85 64 pc
e.g. 26 Range light Joseph
Dallas 93 74 s 90 75 s Wash., D.C. 83 66 s 81 67 pc Moscow 71 55 pc 71 54 s 38 Taking risks, or,
18 Sexist, say 27 Advantageous 62 Aussie runner
Denver 85 59 t 82 50 pc Mumbai 88 77 pc 90 79 t in another sense, 56 Dine by
Detroit
Honolulu
78 66 c
88 75 s
87 72 c
90 77 t
International Paris
Rio de Janeiro
79
87
56 pc 80 60 pc
74 pc 86 73 t
19 Arthur’s foster
brother
a description of candlelight,
Previous Puzzle’s Solution
Today Tomorrow this puzzle’s maybe
Houston 92 75 pc 89 77 t Riyadh 107 77 s 107 77 s D A F T B OM B E D G A S
Indianapolis 89 71 pc 91 73 s City Hi Lo W Hi Lo W Rome 80 66 pc 82 66 pc 20 “Toodles!” theme U C L A A N D R E A A R T
59 Name in a C A U G H T A C O L D Y E A
Kansas City 92 74 s 91 66 c Amsterdam 72 59 pc 72 56 pc San Juan 88 80 sh 88 78 pc 41 World Cup chant
Las Vegas 98 72 s 96 75 s Athens 82 68 s 82 68 s Seoul 78 64 pc 72 66 r 22 Reggae great Beethoven K I X AM I B R E A K
Little Rock 95 73 pc 94 73 s Baghdad 110 78 s 109 77 s Shanghai 92 78 t 91 76 t Peter 42 Like Corinthian bagatelle title C H A R T A C O U R S E
I M E A N R E A D T O
Los Angeles 81 63 pc 85 63 s Bangkok 84 77 t 88 77 t Singapore 88 79 c 86 76 pc
23 Coll. columns 61 Bright Amazon B R A S H C E O S T R I
Miami 90 78 pc 90 78 t Beijing 78 61 pc 85 55 pc Sydney 81 52 s 64 49 sh F E L T A C O N N E C T I O N
Milwaukee 72 67 r 86 67 t Berlin 82 61 pc 81 65 pc Taipei City 95 77 s 94 77 pc grads-to-be 43 Sen. Corker’s swimmer A S L A N T S O R C A S
state W I L L D O B R O A D
Minneapolis 70 61 r 72 51 r Brussels 76 58 pc 76 59 pc Tokyo 77 68 pc 78 68 c 24 Setting for some 63 Get out of the WH A T A C O N C E P T
Nashville 93 72 s 94 75 pc Buenos Aires 68 48 s 70 54 pc Toronto 69 59 s 73 70 r H O L S T A M S A C L
New Orleans 93 75 pc 91 76 t Dubai 103 88 s 103 88 s Vancouver 62 51 pc 63 52 sh schools 44 ___ Aviv way of I N K T A C O T U E S D A Y
New York City 78 63 pc 71 65 pc Dublin 61 45 sh 54 43 r Warsaw 81 57 pc 83 59 s F E E E X U L T S E A R N
Solve this puzzle online and discuss it at WSJ.com/Puzzles.
s

Oklahoma City 90 70 s 88 69 s Edinburgh 61 46 r 57 43 c Zurich 80 55 pc 81 54 s F D R R E D E Y E AM E X

 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.
THE WALL STREET JOURNAL.
What Really Happened in 2008
Ten years af-
ter Lehman,
revisionists
are overturn-
ing the pot-
ted story of
the 2008 cri-
BUSINESS
WORLD sis, and not
too soon.
By Holman W.
Claims of
Jenkins, Jr.
a national
housing bub-
ble as the precipitating event
always seemed dubious when
referring to an asset class
whose prime differentiator is
location, location, location.
What bubble there was
seemed confined to a few sub-
prime hot zones mainly in the
West and Southwest. Now
comes the Mercatus Center’s
Kevin Erdmann to complicate
the story. The hottest markets
in the country never stopped
being hot because restrictive
zoning and building regulations
turn them into what he calls
“closed-access cities,” such as
New York and San Francisco,
where it is legally impossible to
supply the housing demanded
by the nonrich.
The subprime hot zones of
the early 2000s, in his re-
counting, were those that ex-
perienced a demand shock
from working families being
priced out of the closed-ac-
cess cities. Using Phoenix as
an example, he shows that
prices shot up to unsustain-
able levels because even a
home-building boom couldn’t
keep pace with new arrivals.
He also shows, based on rents,
construction and housing’s
share of personal consump-
tion, there never was a na-
The American Dream Needs a Jolt
The expecta-
tion that each
generation
will do better
than the last is
at the heart of
POLITICS the American
dream—and
& IDEAS
losing that
By William
confidence
A. Galston
would trans-
form our na-
tion. A report this week from
the Pew Research Center sug-
gests that this faith in the fu-
ture may be slipping away.
On one hand, economic con-
fidence among Americans is
more positive than at any time
since 2002. Sixty-five percent
rate current economic condi-
tions as good—up from the
low of 17% in the spring of
2009, when unemployment
was surging and the stock
market was crashing. On the
other hand, only 33% of Ameri-
cans expect that their children
will be better off financially
than they themselves are.
Anxiety about the future
goes hand in hand with nostal-
gia. Forty-five percent of
Americans believe that the fi-
nancial situation of “average
people” is worse than it was 20
no
years ago. For many of these
Americans, “Make America
Great Again” is a visceral re-
minder of the arc of their own
lives.
In all these respects, Amer-
ica is now a normal, unexcep-
tional country. Throughout the
developed world, positive sen-
timents about the present are
coupled with negative expecta-
tions for the future. This in-
The Corporate Tax Cut Is Paying for Itself
By Stephen Moore
K
evin Hassett, chairman
of President Trump’s
Council of Economic Ad-
visers, caused a brouhaha by
claiming last week that the
corporate tax cut enacted last
year has “about paid for itself.”
I told Bloomberg it is a little
premature to say that, and
critics have asserted that even
a Trump economic adviser dis-
agrees with Mr. Hassett. But
I’ve looked more closely at the
numbers, and it turns out he is
almost entirely right.
Compare the August 2018
economic forecast from the
Congressional Budget Office
with the one from June 2017,
before the tax cuts passed, and
we discover some very good
news. The much higher than
expected economic growth in
the wake of the Trump tax cut
means that U.S. gross domes-
tic product will be higher than
expected every year over the
next decade.
Even if we assume a rever-
tional oversupply of housing
but the opposite: a shortage
that continues today, centered
on the closed-access cities
that generate so much of U.S.
economic activity.
Every day the sun rises in
the world capital markets on
countless scenes of failed risk-
taking without causing a gen-
eral panic. This is where the
housing story interacts with
another strand of revisionism,
led by Bentley University’s
Scott Sumner, which faults
the Ben Bernanke Fed for
tightening all through the
Great Recession, oblivious to
plunging inflation and a rising
public demand to hold cash. A
related story that you’re hear-
ing—that anger over the bail-
outs is what led to the rise of
Trumpian populism—is, of
course, ridiculous. People are
angry because their own job
and wage opportunities were
depressed for a decade.
Which brings us to Lehman.
Say what you want about “too
big to fail” and moral hazard.
These are real problems. But
once the safety net is un-
furled, sending mixed signals
was the height of foolishness,
with the result that an even
bigger, more controversial
bailout was needed to corral
the ensuing panic. Keep in
mind that a general loss of
confidence by wholesale lend-
ers is what suddenly endan-
gered the survival of a whole
array of banks, money-market
funds and industrial firms like
GE and the auto makers, only
on
some of which held the
opaque, hard-to-value mort-
gage derivatives that were at
us l,
al a
e
cludes many countries whose
ci on
assessments of the present are
even more positive than ours.
Though 85% of the Dutch and
81% of Swedes say their cur-
rent economic situation is
er rs
good, only 35% of the citizens
in these countries think their
children will do better. In Aus-
tralia, which hasn’t had a re-
m e
cession in 25 years, only 28%
expect their children’s lives to
be an improvement on their
m rp
own.
In countries that view the
current economic situation
less positively, the prospects
for the next generation are
co Fo
seen as even worse. Only 15%
of French and Japanese citi-
zens think their children will
live better, as do only 23% of
the British.
Much of Europe, moreover,
shares America’s fond memo-
ries of the past. Not surpris-
ingly, 62% of Spaniards, 72% of
Italians and 87% of Greeks be-
lieve that average people in
their countries were better off
financially 20 years ago than
they are today. But so do 46%
n-
of Germans, 48% of Canadians,
53% of the British and 56% of
the French.
Amazingly, 46% of Austra-
lians share this view—even
though median weekly house-
hold income has risen dramat-
ically, from 1,100 Australian
dollars to more than A$1,600
in the past two decades. In
just the past decade, more-
over, median household net
worth in Australia his risen
from A$722,000 to A$929,000.
In Australia as in many other
countries, nostalgia reflects
sion to the pre-Trump 1.9%
growth path, the ratchet up in
GDP this year translates into
$179 billion in unexpected
output this year, $465 billion
next year, $654 billion in
2020, and so on. This magic of
compounding yields more
than $6 trillion additional
GDP over the decade thanks to
the faster growth already
achieved.
Faster-than-expected
growth has produced
a revenue windfall.
The federal government is
expected to capture a bit more
than 18% of that extra output
in tax revenue—about $1.1 tril-
lion over the 10-year window.
That’s well above the $400 bil-
lion to $500 billion expected
revenue loss from the corpo-
rate tax-rate cut.
Corporate tax revenues are
down this year, but receipts
OPINION
the heart of a bank solvency
conundrum.
Like it or not, the complex
global financial system rests
on government promises to
pay, explicit and implicit.
Some of these guarantees are
essential. Some are ill-advised,
such as guarantees doled out
to mortgage lenders, student
borrowers and wholesale bank
creditors, including the Chi-
nese who bought Fannie Mae
and Freddie Mac securities.
There was a housing
shortage, not a
bubble; the Fed was
too tight, etc.
But the time to correct per-
verse incentives is before a
crisis, not in the middle of
one. On this point the revi-
sionists and the traditionalists
are less at loggerheads than
they seem. Those who let Leh-
man fail now admit they knew
they were courting disaster.
The difference of opinion re-
volves around whether they
were legally stymied from
bailing out Lehman, or
whether they made a judg-
ment that the political furies
would not countenance a Leh-
man bailout at the exact mo-
ment it was needed.
From here it is but a small
step to conclude that the Bush
administration, wittingly or un-
wittingly, invited a Lehman cri-
sis in order to create for itself
the political capital to take the
steps necessary to prop up ev-
something other than objec-
tive economic indicators.
In the U.S., by contrast, the
sentiments are in step with
the numbers. Between 1979
and 1999, median household
income rose from $52,000 to
nearly $60,000. Since then, it
has barely budged. In fact,
2017 was the first year in
which median household in-
come exceeded its level in
1999. Americans are nostalgic
not for a specific point in
Few believe their
children will be better
off, and current policy
offers no solution.
time, but rather for the de-
cades in which the steady rise
in household income was bro-
ken only by recessions, and in
which each recovery yielded
higher wages than the previ-
ous cycle.
Whether Americans regain
our customary optimism de-
pends largely on the policies
we adopt. During the current
recovery, which has increased
median household incomes
from their post-Great Reces-
sion low of $54,700 in 2012 to
today’s $61,400, most of the
gains reflect increases in the
number of people working and
hours worked, rather than in
hourly compensation for each
worker. As we approach full
employment, income gains
will be sustained only by ris-
ing wages.
from nearly every other tax
source are rising at the federal
and state levels. The higher
growth this year alone will
give states and cities almost
$20 billion in windfall reve-
nue. No surprise then that
many states are reporting “un-
expected” gains in tax collec-
tions this year and will have
budget surpluses.
Perversely, because the
economy is bigger now than
expected, the CBO has revised
upward its estimated “cost”
of the tax cut. Because of
lower tax rates, the govern-
ment will get a smaller share
of the larger-than-projected
economy—even though the
tax cut encouraged the faster
growth.
One can argue about how
much of the boom is a result
of the corporate tax cut. My
view is that the small-busi-
ness tax cuts also have
helped, as have deregulation
and pro-energy-production
policies.
The results we are seeing
erything in sight, which soon
needed it. For further insight
into the revisionist take on Leh-
man, consult a new book by
economist Laurence Ball of
Johns Hopkins.
Making hay while the sun
shines would have consisted
of reducing government subsi-
dies to debt. Of course, the
opposite has happened in the
global economy since 2008.
The softest possible landing
from this debt dependency
would be a bout of unexpected,
transformative global growth
that would make so many du-
bious IOUs, including pension
and Medicare promises, afford-
able even though they appear
unaffordable now.
The second softest landing
would be growth plus an unex-
pected spurt of world-wide in-
flation to reduce the real value
of many nominal debts.
The hardest landing in-
volves mass default and the
destruction of much wealth
and savings, followed by
mass unemployment and
hardship.
Unwisely, Dodd-Frank re-
duced the tools available to
the Federal Reserve to re-
spond to the future messes
that Dodd-Frank will not stop
from cropping up. That’s one
worry. If a crisis comes on
Donald Trump’s watch, are
we doomed because his ad-
ministration is so chaotic?
One lesson of 2008 is that
crisis response is always cha-
otic, but the person in the
White House does not play
much role beyond telling his
underlings, “Fix it and I’ll
back you up.”
How might this be accom-
plished? In her recent book,
“The Forgotten Americans,”
my Brookings Institution col-
league Isabel Sawhill offers a
comprehensive agenda for
American workers. Her pro-
gram would increase the bene-
fits of work and reduce the
cost of living with provisions
like support for career and
technical education, an ex-
panded earned-income tax
credit, a refundable child-care
tax credit, increased profit-
sharing, lifelong-learning ac-
counts for individual workers,
and rewards for corporations
that increase training for their
employees.
Experts who lean to the left
will likely focus more on re-
ducing corporate concentra-
tion and increasing workers’
bargaining power with new
forms of collective organiza-
tion. Those who lean more to
the right may choose to com-
bine wage subsidies with
stronger incentives to work
and measures that strengthen
families and communities, as
Oren Cass proposes in his
forthcoming “The Once and
Future Worker.” This is a de-
bate candidates must join dur-
ing the forthcoming presiden-
tial campaign.
One thing is clear already:
Current policies offer little
hope of reversing the steep
decline in the share of U.S. in-
come that flows to workers.
Unless we change course, to-
day’s loss of confidence in a
better future will persist, with
profound consequences for
our country’s character.
are perfectly consistent with
the original game plan. We al-
ways believed that creating
jobs and elevating growth
from 2% to 3% or 4% should be
the major focus of the eco-
nomic revitalization strategy.
Faster growth would make ev-
ery other national problem—
poverty, stagnant wages, fund-
ing Social Security, even drug
abuse—easier to solve. Cer-
tainly the national debt is less
frightening with $6 trillion
more GDP.
This is the growth dividend
we all hoped for when design-
ing the tax cut. Although it is
still early in the game, so far
things are going even better
than we expected.
Mr. Moore is a senior fellow
at the Heritage Foundation
and served as a senior eco-
nomic adviser to the Trump
campaign. He is co-author with
Arthur Laffer of “Trumponom-
ics: Inside the America First
Plan to Revive Our Economy,”
to be published in October.
Wednesday, September 19, 2018 | A17
BOOKSHELF | BY Martin Peretz
An Act
Of Witness
My Country: A Syrian Memoir
By Kassem Eid
(Bloomsbury, 194 pages, $27)
‘S
een from afar, war seems easy,” wrote a Middle East
sage 80 years ago. It still does, even more so when the
combatants are numerous and split by multiple
historical loyalties. In Syria, where a civil war has been raging
since 2011, the big fighting seems to be petering out, almost
ended. Yet the cartography of the country is replete with
historical demarcations defined by sect and tribe, lines that
again will be crossed, when occasion indulges, by all parties to
the old conflict: domestic forces, the cross-border militaries of
Turkey and Lebanon (the latter mostly run by the Iran-
sponsored, messianic Shia militia Hezbollah), and, via air
incursions, Russia, the United States and, yes, Israel (when
Tehran’s war against Jerusalem becomes too plausible).
Right now, Bashar al-Assad and his army command the
country. Aside from Kurdish territory, one province, Idlib, in the
northwest, is still out of their reach, but Vladimir Putin is there
to assist in the retaking. As of now, Turkey and Russia have
arranged a temporary cease-
fire, but this too is untenable.
All odds say the end is near.
As Kassem Eid writes in his
memoir-as-lyric-tragedy “My
Country,” the slaughter that’s
likely to come will be a repeat
performance: By 2013 the Assad
regime was “killing civilians
faster than we could dig graves.”
In his hometown of Moadamiya,
on the outskirts of Damascus,
.
bombs and mortar fire were
ly
suddenly supplemented by sarin
gas: “My friends were fighting for
breath and coughing with all their
force. . . . All I could focus on was the inno-
cent face of this boy”—a lump lying in the dirt
that he had turned over—“stained with grotesque shades of
red, yellow and blue. His eyes returned an empty, glassy stare.”
There had also been an epidemic of torture, and Mr. Eid
evokes the victims and their abusers. If the shedding of blood
can be beautiful in words, he makes it so. But he also brings
tears, and there were moments when I simply had to put the
book down. This gave me time to think between readings. And
the intervals were useful.
How have we gotten to this place? A place where a book like
Mr. Eid’s—a memoir by a Syrian-born son of Palestinian
refugees, who read Reader’s Digest to learn English, didn’t study
writing but was forced to it in order to give testimony, and
whose lyricism comes from a sensitive, perceptive mind endur-
ing the 21st century’s largest state-sponsored mass killing—
came out in July to little fanfare. Even as the perpetrators of the
killing tightened their grip over the country they’ve won
through slaughter. And even as the “refugee question,” which
this conflict largely created, strangles the politics of Western
Europe’s largest democracy, with continental consequences. If
the last century’s human “progress” was partly measured by the
number of times the liberal, “civilized” world failed to fight
genocide, the 21st century has already given us a black mark. By
all means—yes, by all means—we should tend to the displaced
of Syria, but, for the sake of the future, we also need to think:
What stopped us, at the crucial moments, from acting?
A 32-year-old Syrian rebel, now a refugee living
in Europe, has written a memoir of resistance
and survival unique in the annals of modern war.
We all know the past difficulties—Iraq, Libya—that made not
acting in Syria easier. What I want to set forth, as a complement
to Mr. Eid’s writing, is the mind-set among some cohorts of
America’s governing class that those failures have allowed to
become ascendant. This mind-set is an admixture of univer-
salism, leftism and realpolitik—a belief in a global society of
meliorating institutions as the long-term answer to violence,
and an aversion to the use of force by the state, especially in the
West’s former colonies—all justified by “pragmatic” considera-
tions. To wit: We don’t know enough to intervene; intervening in
such a volatile region would only cause more trouble; the Syrian
rebels aren’t “real” rebels but (in Barack Obama’s stunning
description) “farmers, dentists and folks who have never
fought.” People who definitely knew better—John Kerry,
Samantha Power—went along with this pusillanimous charade.
The rationales that Mr. Obama, Mr. Kerry and Ms. Power
offered are familiar: They are the same ones that stopped us
from intervening to save the Tutsis in Rwanda in 1994 and
delayed us from intervening to save the Muslims in Bosnia in
1995 and the Albanians in Kosovo in 1999. None are supported
by reality. Building a global society is a noble calling, but it’s still
only an asterisk in a world where some states have a monopoly
on force and are willing to use it outside the global system.
Washington’s hang-ups about intervening in areas that
Western states once oppressed ignore the fact that the U.S.
wasn’t the oppressor: Syria is a colonial construction of Britain
and France after World War I; these two imperial powers
constructed Syria largely at random; the civil wars that ensued
between religious and ethnic sects that had been thrown
together against their wills led to the ascent of the Assad
family, the minority Alawites. They are the colonial legacy we
should be fighting; and yet it’s they, and their allies at the
United Nations, who accuse us of violating global norms.
Finally, when a state uses chemical weapons on its own people,
as we know Syria did, other states devoted to the principles of
human rights have the duty to intervene. It’s a simple, century-
old line to draw, and it has meaning: Either we stand behind
our responsibility to our fellow human beings or we don’t.
Mr. Eid does not dwell on these concerns: He comes not to
advance an ideological agenda but to bear witness. He is not
a political animal. His book’s only flaw is a product of this
strength: Mr. Eid testifies to the horror but not to the
mentality that lets it continue. At one point, he approvingly
mentions a letter condemning Mr. Assad signed by, among
others, Jürgen Habermas, Noam Chomsky, Norman
Finkelstein, Rabbi Lynn Gottlieb and Rep. Keith Ellison . . .
But these are precisely the voices that speak for global
society and wince at the force of the state; the voices
dominant in the academy and grassroots-left politics that
shaped the views of Barack Obama and his closest advisers.
They have theories, but their theories are too far off the
ground to meet reality. Seen from afar, war really does seem
“easy”—to distance ourselves from, to avoid. Mr. Eid’s book is
a testament to what happens when we do that; and what will
happen again. We have to will ourselves to look.
Mr. Peretz was from 1974 through 2011 the editor in chief of
the New Republic.
 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.

A18 | Wednesday, September 19, 2018 THE WALL STREET JOURNAL.

OPINION
REVIEW & OUTLOOK LETTERS TO THE EDITOR

The Missing China Trade Strategy Many Countries Require Workers on Boards

P
resident Trump on Monday imposed a Jinping took power in 2012, he continued this Prof. Richard A. Epstein goes over- holders and ignore interests of other
long-threatened 10% tariff on $200 bil- trend and created the “Made in China 2025” board in decrying any form of man- stakeholders. The majority of share-
dated employee representation on holders are, in fact, represented by
lion of Chinese imports, effective next plan requiring foreign companies to turn over
company boards, as Sen. Elizabeth money-management firms that cast
week, with the rate set to in- intellectual property in return Warren suggests (“Unions Have proxy votes and many receive voting
crease to 25% at the end of the Trump imposes new for access to China. Stakeholders, Too,” op-ed, Sept. 12). guidance from proxy-advisory firms
year. More than half of Chinese tariffs but what he wants If China were a small coun- Sweden introduced such legislation that consider stakeholder interests.
imports now face punitive try, the U.S. could afford to ab- in 1987, applying it at companies with Index funds now are the largest
taxes, so it’s remarkable that from Beijing isn’t clear. sorb surplus goods and let 25 employees or more. At the time shareholders of 40% of all public com-
the U.S. still hasn’t spelled out American consumers benefit. the corporate sector cried foul, using panies. Larry Fink, head of BlackRock,
what it wants from Beijing. China’s effort to leapfrog into verbiage similar to Mr. Epstein’s— Inc. declared earlier this year that
The lack of a strategy makes it hard to secure the ranks of developed economies by forcing that it amounts to a socialization or companies must serve a social pur-
meaningful gains and resolve a trade war that companies to relocate their most valuable pro- nationalization of large companies. pose. Corporate managers were in-
is damaging both economies. cesses and pervert the law of comparative ad- This wasn’t the effect. Instead, the structed to understand the ways that
net result was to bring the employee “structural trends—from slow wage
The Administration is on solid ground when vantage will ultimately fail.
base into the loop on strategic deci- growth to rising automation to cli-
it says China’s behavior threatens the global But when the world’s second-largest econ- sions, including ones (such as factory mate change—affect your potential
trading system. A study by the U.S. Trade Repre- omy goes rogue, the collateral damage is huge closures) that historically would have for growth.” The left’s narrative of
sentative found “numerous unfair policies and and has undermined political support in the U.S. been highly confrontational. unaccountable capitalism provides a
practices relating to United States technology and the West for free trade. More ominously, I speak from experience in roles rationale for another regulatory-state
and intellectual property.” There is bipartisan China’s mercantilism is part of a larger Xi Jin- ranging from union leader, entrepre- power grab, with union stakeholder
U.S. support to address China’s violations of its ping strategy to establish a new military and neur and senior executive, in various friends of statists serving as their
promises to respect market forces. commercial hegemony in Asia. companies and organizations in both proxies.
But Mr. Trump also continues to rail against The U.S. goal now should be to negotiate a Swedish and the U.S. Any good man- RAY GORDON
China for its large bilateral trade surplus with deal with Beijing that sets new rules of the trad- agement team knows that employee Durham, N.C.
input and buy-in is critical for busi-
the U.S., and this is clearly motivating his esca- ing road. That agreement should seek to change
ness success. This makes nice aca- Mr. Epstein’s call to repeal Section
lation of tariffs. The surplus is driven largely by Chinese practices, not reduce the trade deficit demic boilerplate, but the real world, 8(a)(2) of the National Labor Rela-
Chinese comparative advantage in low-end man- per se. This may require superseding current filled with real people, is a little more tions Act, which proscribes the for-
ufacturing and global capital flows to the U.S. WTO rules, and that is best accomplished with complex than that. Concerns, including mation of company unions, would
Prioritizing a goal that flies in the face of market a united front that includes the world’s other the fear of such representation block- confuse worker participation in com-
forces sends a mixed message to Beijing on what major trading powers. ing decisions, can be mitigated in how pany decision-making and its bot-
the U.S. wants, and it allows China to pose as the Mr. Trump has instead employed a unilateral such a law is formulated. tom-line benefit. New York Sen. Rob-
defender of free trade. tariff policy that lets him boast about being Though I am a fiscal conservative, ert F. Wagner, the original sponsor of
Cabinet members have tried to negotiate tough without a clear goal. The tariffs will hurt I believe it’s a mistake to view mod- the NLRA, said: “I cannot compre-
deals that would satisfy Mr. Trump’s obsession Chinese exporters, though many will move pro- ern market economics as an “us ver- hend how people can rise to the de-
with the trade deficit, only to have him reject duction to other countries. But tariffs also dam- sus them” dichotomy, a view that is fense of a practice so contrary to
ultimately rooted in 19th-century American principles as one which
them as insufficient. Commerce Secretary Wil- age American producers and consumers, as does
capitalism. Legislating seats at the permits the advocates of one party to
bur Ross struck a compromise last year on steel the $60 billion in new retaliatory tariffs that proverbial table provides good air be paid by the other.” Foreseeing
production that was discarded after he returned Beijing announced Tuesday. cover for both sides to engage in con- proposals like Mr. Epstein’s, Sen.

.
from Beijing. In May Treasury Secretary Steve Strong U.S. growth after tax reform and de- versation, not unlike court-mandated Wagner wisely pointed out that “col-

ly
Mnuchin reached a tentative deal to put tariffs regulation is so far dwarfing the overall eco- couples therapy. A balanced bill lective bargaining becomes a sham
on hold if the Chinese bought more soybeans nomic harm from tariffs, as Tuesday’s market should be able to find bipartisan sup- when the employer sits on both sides
and natural gas, but the White House resumed nonchalance indicates. But the tariffs are doing port. There’s no good reason not to of the table or pulls the strings be-
its tariff threats in June. arbitrary harm to innocent Americans, and a
on pursue one. hind the spokesman of those with
Mr. Trump is correct on many points, includ- policy of hurting yourself until the other guy PETER MAGNUSSON whom he is dealing.” Doing away
ing his complaints that his predecessors failed changes his behavior is hard to sustain. Mr. Reno, Nev. with this important provision of the
to address changing Chinese behavior. China’s Trump’s political support will erode if he can’t NLRA would further rig the inequi-
Sen. Warren has little experience in ties favoring employers that Sen.
us l,

accession to the World Trade Organization in deliver the new trade deals he promises.
working for or managing a profit- Warren and Mr. Epstein both agree
2001 assumed the country was committed to If Mr. Trump wants to change Chinese behav- making enterprise. She is perpetuat- need to be addressed.
what it then called “reform and opening” and ior, he should first finish a new Nafta, drop his
al a

BROCK A. KARAHAN
e
ing a progressive myth that corporate
would honor its promises to let foreign compa- blunderbuss steel tariffs on allies, forget new boards today answer only to share- New York
nies compete and protect intellectual property. auto tariffs, negotiate a zero tariff deal with Eu-
ci on

The agreement largely treated China like other rope, and re-enter the Trans-Pacific Partner-
trading nations and relied on WTO arbitration ship. Then lead a coalition to confront Xi Jin-
to resolve disputes. ping from a position of strength with targeted
But China’s economic reforms stalled after its trade enforcement rather than scattershot tar-
A Left Turn Means a New Florida Income Tax
WTO entry. Beijing responded to the global fi- iffs. The real worry is that Mr. Trump supports Regarding William A. Galston’s for Mr. Gillum in the Democratic pri-
er rs

“Will Florida Take a Left Turn?” (Pol- mary aren’t likely to be enthusiastic
nancial crisis by directing credit to state-owned tariffs for their own sake, and he may not want
itics & Ideas, Sept. 12): If Tallahassee supporters of his agenda. Mr. Galston
enterprises, which led officials to discriminate a China deal. With Donald Trump and trade, you Mayor Andrew Gillum is elected Flor- alludes to turnout. As a member of
against foreign companies. After President Xi never know. ida’s next governor, it could ensure my county’s Republican executive
m e

that President Trump will be re- committee, I know the numbers. The
elected in 2020 because it would em- counties of Lee and Collier on the
Selective Outrage on Documents bolden the far-left candidates of the Gulf Coast negated Hillary Clinton’s
m rp

P
Democratic Party and weaken any re- vote advantage in Miami by turning
resident Trump on Monday finally or- concerns the red lines it crossed. As for “selec- solve by more centrist candidates. out almost every Republican regis-
dered the declassification of key docu- tive,” this is the most sweeping disclosure so far This would again create a fool’s tered voter versus a 40% or 50%
ments that may tell us more about the pro- in the Russia probe. It includes 21 pages from the choice for centrist Republicans and turnout of Democrats in Miami. It is
cess by which the FBI began an investigation into application for a warrant to spy on former Trump independents in 2020. In 2016 many all about enthusiasm, and I know few
co Fo

Trump campaign officials. What does it say about
Washington’s desire for truth that so much reac-
tion has opposed this transparency?
“President Trump has intervened again in a
pending investigation by ordering the selective
disclosure of classified materials he believes to
be helpful to his defense,” tweeted Democrat
Adam Schiff. He added that the FBI called the
disclosure a “red line” that “may compromise
sources and methods.”
Forgive us for wondering if the FBI’s real fear
n-
campaign aide Carter Page, transcripts of FBI in-
terviews, and unredacted text messages sent by
key players including former FBI officials Peter
Strzok, James Comey and Andrew McCabe.
Mr. Trump was urged to declassify by a Con-
gress frustrated by FBI and Justice Department
slow-walking of material it sought. If Mr. Schiff
is really worried that this release is too selective,
we’re happy to join him in calling for Mr. Trump
to order the release of all documents and materi-
als Congress has demanded.
voters effectively voted against Hil-
lary Clinton (and by extension, Bernie
Sanders, et al.) by voting for Donald
Trump. As a lifelong Republican, I
would love to have a centrist, pro-
growth Democrat to vote for in 2020.
MARK EVERS
Lake Oswego, Ore.
The 34% of Democrats who voted
Take the Time to Be Sure
Before Transgender Move
in the Sunshine State who want to
start paying a state income tax.
GERARD FISCHER
Naples, Fla.
As a third generation Floridian, I
am continually amazed at the influx
of people fleeing heavily Democratic,
high-taxed states such as New Jersey,
New York and California who, upon
arrival, continue to vote for Demo-
cratic candidates. Do they not know
the meaning of insanity?
CECILIA MEEKS

Schumer’s FBI Ploy Regarding Jillian Kay Melchior’s

Winter Park, Fla.

D
“Peer Pressure and ‘Transgender’
emocrats have succeeded in delaying a forward that information to the Senate Judi- Teens” (op-ed, Sept. 10): We should California and Corporate
no

vote on Brett Kavanaugh’s nomination ciary Committee. If there is an allegation of not be surprised that teens are sub-
until the Senate holds a public hearing some kind, the Senate staff will typically follow ject to peer pressure, and obviously
Board of Director Quotas
with him and his accuser up with the accuser and the one way to get positive attention Regarding your editorial “Califor-
scheduled for Monday, but The demand for a nominee and present the in- these days is to announce you are nia’s Corporate Quotas” (Sept. 11) and
they’re still not happy. Now formation to Senators, who transgender. We should also not be the letters in response (“Sacramento
they don’t even want to hold
bureau probe is one then make their own judgment surprised that a gender clinic which Doesn’t Pass Its Own Quota Test,”
more delaying tactic. depends financially on furnishing Sept. 14): Regarding the mandatory
that hearing until the FBI in- as part of their advice and con- hormone therapy and surgery is op- election of corporate directors by
vestigates the alleged sexual sent power. posed to investigating such peer gender, you state “if minorities lose
assault that happened when The preposterous circum- pressure. What is surprising to me is ground, will there be new quotas
the two were in high school. stance in this case is that Senator Feinstein with- the demonization of Dr. Lisa Littman based on race?”
“The FBI conducted a background check on held Ms. Ford’s accusations for six weeks from of Brown University, who merely sug- You know the answer. Not immedi-
Judge Kavanaugh before these allegations were Republicans and the White House. Ms. Feinstein gested we need to study this issue ately, but within five years, I would
known,” Minority Leader Chuck Schumer said could have turned over Ms. Ford’s letter to the and exercise caution before we “en- guess. It would be par for the course,
Monday on the Senate floor. “It is now the FBI’s FBI immediately, yet now Democrats are de- courage teens to go through hormone consistent with high taxes, excessive
responsibility to investigate these claims, up- manding a further delay so the FBI can do what therapy or surgery—drastic interven- regulations and water policies favor-
date the analysis to Judge Kavanaugh’s back- the Senators can do for themselves—which is to tions whose effects are irreversible.” ing fish over people. California and
JOHN L. WIESTER other so-called progressive state gov-
ground, and report back to the Senate.” interview the nominee and his accuser.
Buellton, Calif. ernments continue to demonstrate
Other Democrats have picked up the same Republicans have invited Mr. Kavanaugh and they favor the same inertia and medi-
chant since Senator Dianne Feinstein announced Ms. Ford to appear on Monday, Mr. Kavanaugh Someday we will look back at this ocrity from the private sector they
last week that she had forwarded to the FBI a says he’ll show up anywhere or anytime to deny as a period of collective insanity, exhibit themselves.
letter that accuser Christine Ford had written the accusation. Yet by our deadline Tuesday Ms. much like the satanic-ritual abuse JEFF FELMAN
to her. Both Senators know this isn’t the role Ford’s lawyer was still declining to say if her cli- hysteria which swept the country in Cleveland
that the FBI plays in nominations, and their de- ent would appear. Democratic staffers were also the 1980s.
mand shows that their real motive here is fur- refusing to cooperate with Republicans on a JOHN CONLIN
ther delay. schedule to conduct phone calls with Ms. Ford, Littleton, Colo. Pepper ...
The FBI doesn’t conduct criminal investiga- Judge Kavanaugh, and any relevant witnesses. And Salt
tions into nominees, especially not into an al- Such follow-up phone calls are standard proce- Clinical generalizations are often
misleading. After 45 years of caring THE WALL STREET JOURNAL
leged incident that would not have been a viola- dure after an FBI background check has been
for transgendered patients, I teach
tion of a federal statute. State law would be at completed. psychiatric residents, “When you
issue. That’s why the FBI responded to Ms. Fein- All of this underscores that the main Demo- have seen one transgendered pa-
stein’s statement last week by saying it had no cratic goal is to delay a confirmation vote past tient, you have seen one transgen-
plans to conduct a criminal probe and merely the November election. That would spare Demo- dered patient.”
added Ms. Ford’s letter to Judge Kavanaugh’s crats running for re-election in Donald Trump PROF. CHESTER SCHMIDT, M.D.
background file. states from having to take a difficult confirma- Johns Hopkins University
The purpose of a background check is to in- tion vote. If Democrats take the Senate majority, School of Medicine
terview people about the character and qualifi- they’ll then insist on no vote until the new Sen- Baltimore
cations of a nominee. The FBI makes no judg- ate convenes in January.
ments about the veracity of the people it Republicans have already created more dan- Letters intended for publication should
interviews, and its role isn’t to issue a judgment ger for themselves and Judge Kavanaugh by be addressed to: The Editor, 1211 Avenue
of the Americas, New York, NY 10036,
about the nominee. The FBI simply compiles in- agreeing to a hearing that Democrats will turn or emailed to wsj.ltrs@wsj.com. Please
formation that is then submitted to the White into a #MeToo spectacle. They should tell Ms. include your city and state. All letters
House. Ford and Democrats that if she doesn’t want to are subject to editing, and unpublished
If the nomination is for a judgeship confirm- show up on Monday, they will move to a confir- letters can be neither acknowledged nor “Sorry, but you’re on our
returned.
able by the Senate, then the White House will mation vote post-haste. watch-list for slow eaters.”
 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.
THE WALL STREET JOURNAL.
What’s the Matter With Westchester?
By Bobby Jindal
W
hile the media ob-
sesses over all things
Donald Trump, the
Democratic Party is
fighting an intense
battle over the best way to defeat
him in 2020. Relatively moderate
candidates beat progressive chal-
lengers in gubernatorial primaries in
Wisconsin, Michigan and Minnesota,
but Democratic primary voters in
Vermont and Georgia selected a
transgender and a female African-
American nominee who have gained
national attention mainly for their
precedent-breaking identities. Based
on special-election results, Demo-
crats seem to be overperforming
with traditionally Republican subur-
ban voters. The question is whether
they can succeed in the midterm
elections by targeting the same co-
alition that failed to put Hillary Clin-
ton in the White House.
Suburbanites vote against
their economic interest to
advance social liberalism.
Whereas Midwestern Democrats
are fighting to regain formerly ne-
glected white working-class voters
in industrial and rural communities,
many already competing for the
party’s 2020 nomination apparently
think the future still belongs to the
“coalition of the ascendant”: millen-
nials, minorities and socially liberal
whites, especially college-educated
single women.
The former faction is following
the successful playbook of Rep.
Conor Lamb in Pennsylvania and
Sen. Doug Jones in Alabama, stress-
ing their conservative cultural cre-
dentials. The latter group, which in-
cludes Sens. Elizabeth Warren,
Bernie Sanders and Kirsten Gilli-
brand, have raced to embrace radical
concepts like abolishing Immigration
and Customs Enforcement and elimi-
nating all private medical insurance
in favor of government-run cover-
age. This leftward shift is likely to
accelerate as 2020 approaches; many
activists from whom these candi-
dates take inspiration are now push-
ing to abolish prisons—except, pre-
sumably, for persons associated with
Clarence Thomas Hearings Redux
If you thought the
first round of Senate
hearings for Su-
preme Court nomi-
nee Brett Kavanaugh
was a hot mess of
spectacle and cyni-
UPWARD
MOBILITY cism, if you thought
we learned more
By Jason L.
about Cory Booker’s
Riley
and Kamala Harris’s
presidential ambi-
tions than we did about Judge Ka-
vanaugh’s jurisprudence, if you
thought political theatrics couldn’t
get any worse or more obvious—wait
until Monday’s reboot.
“We’re delaying the vote strictly
to get all the facts out on the table,”
said Senate Judiciary Chairman
Chuck Grassley Tuesday. The facts in
question surround an allegation by
no
Christine Blasey Ford, who says a
teenage Brett Kavanaugh drunkenly
groped her at a party more than 3½
decades ago when they were in high
school. He has “categorically and un-
equivocally” denied the claim, which
Democrats have known about since
July but declined to make public until
after the Senate’s hearings concluded
and days before a scheduled commit-
tee vote on Judge Kavanaugh’s
nomination.
Dianne Feinstein, the ranking
Democrat on the Judiciary Commit-
tee, didn’t ask Judge Kavanaugh
about the accusation in private dis-
cussions or while he was under oath,
despite multiple opportunities to do
so. Other Democrats were similarly
coy, which smells. Did they not take
Ms. Ford’s allegations seriously, or
were they sitting on this information
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President Trump.
Some Democrats
think pursuing white
working-class voters
would threaten to di-
lute their progressive
message. Bill Clinton
campaigned on a
more moderate plat-
form than preceding
Democratic nominees
and ended up signing
Republican-backed
legislation to add
work requirements to
welfare and curb
growth in government
spending.
In contrast, his
wife in 2016 appealed
to traditionally Re-
publican suburban fe-
male voters on the
basis of identity poli-
tics. A vote for her
was a vote to “break
the glass ceiling,” and
to condemn Mr.
Trump’s misogynistic
rhetoric, more than it was a vote for
specific policies. She won a greater
share of votes from college-educated
white women than Barack Obama
did four years earlier, but not
enough to overcome Mr. Trump’s
surge among voters in less densely
populated areas.
Ever since Ronald Reagan refash-
ioned the modern Republican Party
on the three-legged stool of social,
fiscal and foreign-policy conserva-
tism, liberals have complained that
social conservatism drives the
white working class to vote against
its own economic interests. They
claim Republicans have been gain-
ing votes with appeals based on is-
on
sues like gun rights, patriotism and
traditional values, only to enact
“trickle down” economic policies
that disproportionately benefit
us l,
their wealthy donors. Marx pre-
ceded this argument in claiming
al a
e
that “religion . . . is the opiate of
the masses,” a toxin that clouds
workers’ sense of the oppression
ci on
they face. Never mind that Reagan
enacted policies that resulted in
strong economic growth—as has
President Trump, so far.
The irony is that it is now Demo-
er rs
crats who are using cultural appeals
to persuade a demographic group—
college-educated suburbanites—to
m e
m rp
until releasing it could do the most
political damage? Mr. Grassley and
other Republicans say they want to
allow Ms. Ford to air her claims and
co Fo
Judge Kavanaugh to respond to them.
The Democrats’ goal, however, is now
to delay a vote until after the Novem-
ber midterm elections, when they
hope to win back control of the Sen-
ate and sink any and all of President
Trump’s picks for the high court.
As in 1991, unverified
allegations threaten
to derail a Supreme
Court nomination.
n-
So far, Mr. Trump is playing nice.
“We want to get to the bottom of ev-
erything,” he said Tuesday. “We want
everybody to be able to speak up and
speak out.” Politically, it’s a wise
move, but who knows how long he’ll
contain himself.
Ms. Ford may well believe what
she’s alleging, but that doesn’t mean
that the rest of us should automati-
cally believe it. The Washington Post
reported that she kept mum for de-
cades, until 2012, when she was in
couples therapy with her husband.
There are discrepancies between the
therapist’s notes about the alleged in-
cident and what she’s saying now.
Memories are unreliable, and they
become less reliable over time. If Ms.
Ford deserves criticism, it’s for her
initial attempts to derail a Supreme
Court nomination based on a single
anonymous claim.
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OPINION
vote against their own economic in-
terests. Many of these voters have
fled cities in search of safer commu-
nities, better schools and lower
taxes, and are natural supporters of
law-and-order, small-government
Republicans. The Democrats’ unified
opposition to President Trump’s tax
cuts and deregulation, along with
their support for higher taxes and
redistribution, means they can’t ap-
peal to suburbanites to vote their
pocketbooks. Instead, liberals are at-
tempting to pressure suburban vot-
ers into opposing any candidate
aligned with President Trump out of
cultural antipathy.
Democrats have been remarkably
successful at using their media and
cultural hegemony to normalize for-
merly radical views and to marginal-
ize formerly dominant ones. In a rel-
atively short time, the nation’s
academic, business and government
elites have coalesced around a sup-
posedly common-sense consensus in
favor of restricting gun ownership,
correcting “structural” bias against
minorities and women, protecting ac-
cess to abortion, expanding the defi-
nition of marriage, increasing immi-
gration, limiting the role of faith in
the public square, replacing fossil fu-
els, and playing down patriotism in
favor of multiculturalism. Mrs. Clin-
Ms. Ford and the Democrats who
believe her story need to provide
more evidence to support their
claims. From everything we know
about Judge Kavanaugh, who has
passed multiple FBI background
checks for government jobs over the
decades, the alleged behavior is out
of character. The same cannot be said
about the behavior of Democrats and
others on the political left who have
attempted to block Republican nomi-
nees to the Supreme Court.
In 1991 Clarence Thomas, a federal
judge, was President George H.W.
Bush’s choice to fill the Supreme
Court vacancy left by the retirement
of Justice Thurgood Marshall. Days
before the Senate was scheduled to
vote, allegations surfaced that Judge
Thomas had sexually harassed Anita
Hill, who worked for the future jus-
tice when he ran the Equal Employ-
ment Opportunity Commission in the
early 1980s.
It isn’t merely suspicious timing
that makes the parallels with Judge
Kavanaugh’s current situation so ee-
rie. The Democrats’ main opposition
to Mr. Thomas sitting on the Su-
preme Court centered on abortion.
Notable & Quotable: DeVos
Education Secretary Betsy DeVos
speaking at Philadelphia’s National
Constitution Center, Sept. 17:
I think of the teacher who blithely
wears a shirt that reads: “Find your
truth.” Poor advice that is plastered
on the walls of the classroom for her
unsuspecting young students to ab-
sorb, as well.
That notion has taken root in our
relativistic culture. Surely we’ve all
heard something that goes like this:
“You have your truth. And I have
mine.” Folks who embrace this notion
insulate themselves from other peo-
ple, other experiences and other ideas.
Serious conversation is over.
The pernicious philosophy of rela-
tivism teaches that there is no objec-
tive truth. Nothing is objectively
good or objectively evil. “Truth” is
only personal point of view, fleeting
circumstance and one’s own desires.
And those views, those experiences,
those desires can be understood only
by those who live them. Nothing else
and no one else matters.
And that, I posit, is the threat that
America’s campuses face today. Our
self-centered culture denies truth be-
cause acknowledging it would mean
certain feelings or certain ideas could
be wrong. But no one wants to be
Wednesday, September 19, 2018 | A19
ton committed the po-
litical sin of saying
what she really be-
lieved when she de-
scribed many of Mr.
Trump’s supporters as
“deplorables” for not
sharing these sorts of
views, and New York
Gov. Andrew Cuomo
did the same when he
asserted “America was
never that great.”
Not wanting to get
left behind by their af-
fluent or young cus-
tomers, even large
corporations have
rushed to join the new
consensus. Whereas
companies once either
feared conservative
backlash or avoided
controversial issues,
they are now more ea-
DAVID KLEIN
ger to align them-
selves with progres-
sive causes. After the
Parkland shooting in
February, Dick’s Sporting Goods re-
moved certain rifles from their
stores and stopped selling firearms
to customers under 21, while its CEO
spoke out in favor of various gun-
control measures. When then-Gov.
Mike Pence signed Indiana’s Reli-
gious Freedom Restoration Act, sev-
eral companies protested, with Sales-
force and Angie’s List specifically
threatening to reduce investment and
employment in the state. When
North Carolina passed legislation re-
.
quiring individuals to use public
ly
bathrooms based on the sex on their
birth certificates, PayPal, the NCAA
and the NBA all threatened economic
retaliation. Both Indiana and North
Carolina relented.
Many suburban voters rejected
the values Mr. Trump espoused in
the campaign, but decided late in
the campaign to vote for him based
on their opposition to Mrs. Clinton.
Democrats’ chance of gaining con-
trol of Congress this November de-
pends largely on their ability to
make this an election about cultural
symbolism rather than economic
governance.
Mr. Jindal served as governor of
Louisiana, 2008-16, and was a can-
didate for the 2016 Republican presi-
dential nomination.
Ms. Hill was Judge Thomas’s sole ac-
cuser, and none of her defenders had
witnessed the alleged behavior, so
the situation boiled down to his word
against hers. Like Ms. Ford, Ms. Hill
was presented as a courageous
woman who made the difficult deci-
sion to come forward with her allega-
tions after suppressing them for
nearly a decade. Like Judge Ka-
vanaugh, Judge Thomas strongly de-
nied the accusations, and his defend-
ers contradicted parts of her story.
Finally, both men were put in the
near-impossible position of having to
prove a negative to be believed.
If the Thomas-Hill hearings are
prologue, we can expect media cover-
age to give Judge Kavanaugh’s deni-
als much less credence than Ms.
Ford’s claims. The hearings will turn
into a national referendum on sexual
assault, and Ms. Ford will become the
latest poster child for hashtag femi-
nism. Whether the events alleged re-
ally happened will be secondary. Just
ask Anita Hill, who over the past 27
years has made a career out of being
the supposed victim of actions that
were never proved to have actually
occurred.
wrong. It is much easier to feel com-
fortable in saying there is no truth.
Nothing that could challenge what we
want to believe. . . .
Abandoning truth creates confu-
sion. Confusion leads to censorship.
And censorship inevitably invites
chaos on campuses, and elsewhere.
This is not simply a matter for ac-
ademics to debate. Parents are
watching how institutions of learning
are resolving these controversies,
and many don’t like what they see.
Recent surveys indicate public sup-
port for colleges and universities has
declined over the last few years. . . .
Too many institutions have tried
to pursue truth and harmony, but end
up failing in both. Jonathan Haidt, a
psychologist and professor at New
York University, argues that institu-
tions of learning cannot pledge to
pursue truth and at the same time
oblige a welcoming atmosphere, civil-
ity or even social justice.
The latter are to be voluntarily
embraced by each member of the
community. A school, on the other
hand, must make a choice as to its
purpose. Let’s call it “Haidt’s choice.”
Pursue truth or pursue harmony. An
institution of learning cannot be both
a forum for all ideas and an advocate
for some at the expense of others.
No More
Pay-to-Play
Green Cards
By John Vecchione
And Anne Weismann
H
ere’s a change to immigra-
tion policy on which Ameri-
cans of both parties ought to
agree: Congress should allow the
EB-5 Regional Center Program to
expire on schedule at the end of
September.
Created in 1992, the EB-5 pro-
gram—short for “employment-based,
fifth-preference visas”—grants green
cards to foreign nationals who invest
$1 million in an American business
that creates at least 10 jobs. The min-
imum investment for visa eligibility
drops to $500,000 if the project bene-
fits a rural area or a place with high
unemployment. For years the pro-
gram received temporary exten-
sions—usually tucked into must-pass
spending bills such as the March 2018
omnibus—despite well-documented
fraud and national-security concerns.
There is scant evidence the program
produces economic benefits.
The EB-5 Regional Center
program is a bipartisan
source of corruption and
cronyism. Let it die.
Nearly all EB-5 investments (and
visa petitions) flow through the 866
regional centers, which pool EB-5 in-
vestments with little oversight or
regulation. Regional center opera-
tors, together with state and local of-
ficials, have manipulated the process
so that almost every project is con-
sidered to be in a rural or high-un-
employment area. Sen. Chuck Grass-
ley released a 2013 internal memo
from the investigative arm of U.S.
Immigration and Customs Enforce-
ment concluding that there are “no
safeguards that can be put in place
that will ensure the integrity of the
[regional center] model.”
Making matters worse, the EB-5
Program is also a bipartisan source of
political corruption and cronyism.
Last year, the Kushner Cos. urged
Chinese citizens to invest in projects
through the EB-5 Program. White
House adviser Jared Kushner’s sister,
Nicole Kushner Meyer, was featured
prominently. Mr. Kushner had previ-
ously leveraged the EB-5 program to
help finance the construction of a lux-
ury mixed-use skyscraper in a boom-
ing area of Jersey City, N.J., which the
company artfully got qualified as a
high-unemployment area.
The Homeland Security Depart-
ment shut down Vermont’s regional
center after a group of foreign inves-
tors filed a lawsuit alleging “the larg-
est fraud in Vermont history and the
largest EB-5 fraud in U.S. history.” The
Securities and Exchange Commission
accused the two operators of Ver-
mont’s EB-5 program, which raised
more than $200 million, of operating
a Ponzi scheme and using program
funds to pay for personal and lifestyle
expenses, including a luxury condo-
minium in New York City.
South Dakota’s regional center
was similarly engulfed in scandal in
2013 when officials siphoned off mil-
lions in EB-5 funds and tax revenue
for personal use, including the pur-
chase of Egyptian artifacts, resulting
in at least one felony conviction.
In 2008 Republican Govs. Haley
Barbour of Mississippi and Bobby
Jindal of Louisiana lent political sup-
port to an EB-5 regional center that
eventually funded a doomed green-
car company founded by Terry
McAuliffe, a former Democratic Na-
tional Committee chairman who was
elected governor of Virginia in 2013.
The company filed for bankruptcy
this February.
In 2015 the Homeland Security in-
spector general found that former
Sen. Harry Reid inappropriately in-
tervened on behalf of a Las Vegas ho-
tel and casino that had solicited and
secured EB-5 investments.
The only real support for renew-
ing the EB-5 program comes from
real-estate developers with political
connections. They argue that the
program creates jobs, but an inde-
pendent examination by the Govern-
ment Accountability Office found no
evidence to verify those job-creation
claims.
At a June 2018 Senate Judiciary
hearing, L. Francis Cissna, director
of U.S. Citizenship and Immigration
Services, explained that his agency
doesn’t have the authority to curb
endemic fraud in the EB-5 program.
Mr. Cissna also couldn’t catalog the
amount of the fraud. Unless Con-
gress could legislate some reform to
the program, he said, it should be
allowed to expire. That time has
come.
Mr. Vecchione is president and
CEO of Cause of Action Institute. Ms.
Weismann is chief FOIA counsel at
Citizens for Responsibility and Ethics
in Washington.
 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.

A20 | Wednesday, September 19, 2018 THE WALL STREET JOURNAL.

Special Advertising Section

Spreading the

Buoyed by a unique vision, Subaru reimagines

the role of corporations in their communities.
s president and chief executive officer of The Leukemia & Lymphoma Society (LLS), Dr. Louis DeGennaro, Ph.D.,
has seen firsthand the wide array of challenges facing patients as they battle cancer. Often, the toughest parts of
receiving treatment are the myriad side effects associated with therapies such as chemotherapy and radiation. One
in particular is quite pervasive amongst patients — they can’t seem to get warm. “Treatment regimens for cancer
patients leave them even more vulnerable to the cold,” DeGennaro explains.

To aid such patients, LLS turned to Subaru of Tom Doll, President and Chief Executive Officer, based on the values a company displays. Mean-

.
America for a scalable solution — and the auto- has been with Subaru of America since 1982. As the while, research from Deloitte indicates employees

ly
maker delivered. Beginning in 2015, DeGennaro company, founded in 1968, has gained stability and increasingly demand their employers affect posi-
and the 56 chapters of The Leukemia & Lymphoma financial health, Doll says Subaru felt compelled to tive change — particularly Millennials, 86 percent
Society joined with Subaru of America and its net- on examine its commitment to civic responsibility. of whom say success should be measured by more
work of retailers to deliver blankets to patients in than profitability.
over 700 hospitals across the U.S. “It’s a thoughtful, “It was lesson that one of my college professors
warming gift,” DeGennaro says. “It’s also a symbol instilled in me,” he says. “‘What do you want to The Virtuous Cycle
us l,

of the community wrapping its warmth and care be remembered for?’ As a company, we really felt For the Love Promise to act as the catalyst Doll
around these patients as they undergo treatment.” compelled to positively impact our local communi- envisions — serving as a value proposition for cus-
al a

ties and leave our mark on society.” tomers and Subaru employees alike — the mission
e
In conjunction with 500 Subaru retailers — up must translate from a broad ethic of service into ac-
ci on

from 393 in the first year — LLS says it has delivered
over 100,000 blankets and 12,500 arts and crafts
kits to cancer patients over the life of the program,
often accompanied by hopeful messages written
by Subaru customers. In fact, the LLS partnership
er rs
It meant treating community service within the
organization not just as a corporate good, but as a
fundamental responsibility. “We wanted to empow-
er the organization, including our retailers, to im-
pact the lives of others,” Doll says. “We’ve changed
tion and impact on a local level.
Piper Medcalf, Executive Director for The Leuke-
mia & Lymphoma Society’s Georgia Chapter, says
the Subaru network of Georgia local retailers and

is one of the many charities and businesses sup- the way they can approach their individual commu- employees have quickly grown more creative in the
ported by the Subaru Love Promise, an initiative nities to make them better places to live and work.” ways they impact hospitals and patients in their
that finds employees and local retailers across the communities, above and beyond collecting money
m e

country contributing time, money and goods to fur- That mindset drives the accumulation not just or dropping off blankets and kits.
ther regional, national and global programs in ar- of financial contributions, but also thousands
m rp

eas such as education, environmental stewardship,
health and animal welfare.
Breaking down the impact of the Subaru Love
co Fo
of hours of time donated by Subaru retailers “One retail store was so touched by the hospital staff
and employees. and what they were doing for patients, they catered
lunch for the personnel of the entire cancer center.
Moreover, Doll believes the ethos driving the We saw another retail store bring a popular celeb-

Promise by the numbers tells a story that is truly
staggering: 800 certified wildlife habitats have been
donated to schools, along with over 187,000 sci-
ence books, plus 8,600 animal shelter supply kits
and 2,700 new pet parent kits have impacted nearly
100,000 shelter pets. The company’s annual Share
the Love event, in which Subaru donates $250 for
every car sold or leased to the customers’ choice of
charities, raised nearly $24 million in 2017 and more
than $118 million in the 10 years since its inception.
n-
Subaru emphasis on service contributes strongly
to the company’s business goals, tying retailers to
communities and customers to Subaru. “That’s how
we’re able to be successful,” he says. “We believe in
supporting the causes our drivers care most about.
Our customers led us to pets, because they love ani-
mals. They led us to education, because we’ve got a
lot of customers who believe in making advanced
learning as accessible as possible.”
Doll says he’s heard people question the Subaru
rity musician with them to deliver blankets,” Medcalf
says. “When patients have bone marrow transplants,
they often create a new birthday around the day of the
transplant. One hospital has started a new practice of
singing patients a birthday song, hanging balloons on
the door and utilizing the Subaru blankets as a ‘birth-
day” present.’ It’s really special.”
It’s a virtuous cycle wherein participation creates
more participation, she says. “We’ve seen each year
Subaru coming to us and saying, How can we do

Redefining the Mission
Philanthropic efforts by corporate America have
increasingly left a mark on the fabric of society. In its
2018 “Giving in Numbers” survey of more than 250
no
approach and wonder if there are better ways to more? Last year was great, but how can we make
maximize shareholder value. He disagrees. “I don’t this year even better?’”
think we’re wasting a dime,” Doll says. “I think it
comes back to you in spades.” It’s a lasting commitment to community Medcalf

multibillion-dollar organizations, CECP, a CEO-led
coalition of more than 200 companies, found medi-
an total giving of over $19 million and aggregate total
giving of nearly $24 billion. For Subaru, though, the
Love Promise is not designed to represent the com-
pany’s corporate citizenship arm, but something
tied as intrinsically to its mission as selling cars.
is happy to have. “Fighting cancer,” she notes, “is a
Evidence bolsters Doll’s viewpoint. A 2017 Cone team sport.”
Communications CSR Study revealed that 70 per-
cent of Americans believe companies have an
obligation to take action on issues not necessar-
ily relevant to everyday business operations, and
87 percent said they’d make purchasing decisions

The Wall Street Journal news organization was not involved in the creation of this content.

Employees from Crews Subaru of

Charleston, SC, demonstrate their
commitment to The Leukemia &
Lymphoma Society.
 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.
TECHNOLOGY: ALIBABA’S JACK MA SAYS HE, NOT BEIJING, DECIDED IT WAS TIME TO GO B4
BUSINESS & FINANCE
© 2018 Dow Jones & Company. All Rights Reserved.
S&P 2904.31 À 0.54% S&P FIN À 0.41%
Offering Shows Appetite for Riskier Debt
Blackstone group uses
a $13.5 billion financing
to acquire a stake in a
Thomson Reuters unit
BY SAM GOLDFARB
AND SOMA BISWAS
One of the largest-ever
sales of speculative-grade debt
was completed with ease on
Tuesday, a sign of the favor-
able environment for U.S. bor-
rowers at a time of robust
economic growth and strong
demand from investors.
The $13.5 billion sale—
which a Blackstone Group LP-
led investor group is using to
General Mills
Sales Slump in
North America
BY ANNIE GASPARRO
AND ALLISON PRANG
General Mills Inc. is strug-
gling to revive sales in the U.S.
as growth in its new pet-food
business slows.
The food maker’s sales rose
8.6% to $4.09 billion in the lat-
est quarter, driven by interna-
tional revenue. General Mills’
sales in its main North Ameri-
can market dropped 2.1% to
$2.39 billion, more than ana-
lysts expected. Shares, down
26% year to date, fell 7.6%
Tuesday.
The company’s move
into high-end pet food
aims to offset slower
growth elsewhere.
The Minneapolis-based con-
glomerate has tried to offset
stagnant sales with a move
into high-end pet food, a busi-
ness that is expanding rapidly
compared with packaged, pro-
cess food. General Mills com-
pleted the acquisition of Blue
Buffalo for $8 billion in April
and has focused since on get-
ting the pet food into more
stores.
General Mills’ pet-food sales
rose 14% in the latest quarter
to $343.4 million on a compa-
rable basis. Sales at retailers
increased 9%. That is faster
no
sales growth than for the com-
pany’s main packaged foods,
but a slowdown from Blue Buf-
Facebook Sought Users’ Financial Data for Years
BY ANNAMARIA ANDRIOTIS
AND EMILY GLAZER
Facebook Inc. had been
haggling with financial firms
over its access to users’ sensi-
tive financial information for
years, well before the social-
media company came under
fire for its handling of per-
sonal data.
As recently as last year, the
social-media company pressed
financial firms for the ability
to use customer data flowing
PERSONAL TECHNOLOGY | By Joanna Stern
Sizing Up iPhone XS and XS Max
Dear reader,
I write to
you with a se-
rious iPhone
review predic-
ament.
Imagine Goldilocks only
tested the cold and hot por-
ridges and never found the
one that was “just right.” Her
life might have been entirely
different. That’s how I feel
about testing the iPhone XS
and XS Max—without the
iPhone XR—for the past week.
In case you missed it, here
* * * **
S&P IT À 0.62%
acquire a 55% stake in a
Thomson Reuters Corp. data
business called Refinitiv—
comprised $9.25 billion of
loans and $4.25 billion of se-
cured and unsecured bonds,
with different pieces denomi-
nated in U.S. dollars and euros.
Including a $750 million re-
volving credit line, the bond-
and-loan deal amounted to the
ninth-largest leveraged financ-
ing on record in the U.S. and
Europe, and was the fourth-
largest since the financial cri-
sis, according to LCD, a unit of
S&P Global Market Intelligence.
Refinitiv’s cash-raising ef-
fort was viewed on Wall Street
as a test for how much debt
companies with poor credit
falo’s sales when General
Mills agreed to buy it in
February.
“If all my businesses
had decelerated to 9%
us l,
growth, I’d be in pretty
good shape,” Chief Execu-
al a
e
tive Jeff Harmening said in
an interview.
U.S. snack sales for Gen-
ci on
eral Mills fell 4% in the lat-
est quarter, while sales of
yogurt such as Yoplait de-
clined 2%, as did sales of
meals and baking products
er rs
such as Betty Crocker cake
mix. U.S. sales of cereal
brands such as Cheerios and
Lucky Charms rose 1%.
m e
“As industry trends im-
prove, we’ve seen our com-
petitiveness improve,” Mr.
m rp
Harmening said.
General Mills’ total organic
net sales, which take out im-
pacts from things such as
changes in foreign-exchange
co Fo
rates, rose 0.5% in the quarter.
General Mills has also
raised prices this year to make
up for rising transportation
and ingredient costs that have
hit the industry. Profit de-
clined as net interest climbed
more than 80% from the com-
parable quarter a year earlier
because of the Blue Buffalo
deal. The company reported
earnings of $392.3 million,
down 3.1% from the compara-
ble quarter a year earlier. On
n-
an adjusted basis, the company
reported earnings of 71 cents a
share, above analysts’ esti-
mates of 64 cents.
 Heard on the Street: General
Mills is going to the dogs... B16
through its Messenger plat-
form for a range of purposes,
including advertising, accord-
ing to people familiar with the
matter and documents re-
viewed by The Wall Street
Journal. Concerned about pri-
vacy, several firms negotiated
bespoke agreements that lim-
ited how Facebook could use
any financial data that would
pass through its servers.
The negotiations highlight a
dilemma facing Facebook as it
balances its need for detailed
are the basic differences:
• iPhone XS: An upgrade
to the 5.8-inch iPhone X
from last year. It still starts
at $1,000 and begins ship-
ping Friday, Sept. 21. (The
original X is gone. RIP.)
• iPhone XS Max: A giant
version of the XS with a 6.5-
inch screen—Apple Inc.’s
biggest-ever phone display.
It starts at $1,100 and also
ships Friday.
• iPhone XR: A new
model that doesn’t have the
two-camera system and vi-
THE WALL STREET JOURNAL.
DJ TRANS À 0.40% WSJ $ IDX À 0.10%
ratings can issue in the cur-
rent market and how aggres-
sively they can set the terms
of such deals.
While they have been rare in
recent years, supersized buy-
outs inevitably stir memories of
the years immediately preced-
ing the financial crisis, when
there was a rash of such deals
that were quickly followed in
some cases by bankruptcy or
other forms of distress.
Refinitiv’s debt offering was
“reminiscent of the kind of
deal I would have seen in 2006
and 2007,” said Scott Roberts,
head of high-yield investments
at Invesco.
Along with the total debt
being issued, “you have a cov-
on
user data to better target ad-
vertisements and increase user
engagement with concerns
about how best to handle us-
ers’ most sensitive personal
information. It is an issue that
has taken on new importance
following the uproar over
Facebook’s ties to political an-
alytics firm Cambridge Analyt-
ica, which accessed informa-
tion on as many as 87 million
users of the social-media net-
work without their consent.
Facebook has in recent
brant OLED screen, but does
have a slightly larger 6.1-inch
LCD screen and apparently
better battery life. It starts at
$750 and ships on Oct. 26.
Sure, Apple’s monthlong
shipping gap might be a re-
sult of manufacturing time-
lines, or it might be a psy-
chological trick to get you to
buy the more expensive
models out right now. What-
ever the case, after in-depth
testing of the new XS and XS
Max models, I do have some
Please turn to page B4
LIBOR 3M 2.338
enant package that’s extremely
weak” and ambitious assump-
tions about future cost sav-
ings, he added.
Still, Refinitiv was able to
issue most pieces of its debt
package at yields comfortably
below what it initially pro-
posed to investors. Among
those were $1.575 billion of
eight-year unsecured bonds is-
sued at par with an 8.25% cou-
pon, down from original guid-
ance in the low-9% area. The
unsecured bonds are rated
Caa2 by Moody’s Investors
Service and B- by S&P Global
Ratings, near the bottom of
the ratings spectrum.
On Monday, the company
Please turn to page B14
Not So Cheery
The company’s stock has
underperformed the rest of the
U.S. food-and-beverage sector.
Retail-sales growth
Quarterly, change from previous year
3%
2
1 BY TIM HIGGINS
0
–1
–2
–3
–4
–5
Year-to-date performance
5%
0 Tesla said it hasn’t received a
–5
–10
–15
–20
months taken steps to give us-
ers more control over data it
collects. Earlier this year, the
company changed its privacy
policy to more clearly spell out
how it handles advertising and
user data. In April, before the
European Union began enforc-
ing its General Data Protection
Regulation privacy law, Face-
book asked users to review in-
formation about different
types of advertising.
“Like many online compa-
nies, we partner with financial
INSIDE
WEWORK
MAKES IT BIG
IN MANHATTAN
PROPERTY REPORT, B6
Wednesday, September 19, 2018 | B1
NIKKEI (Midday) 23776.69 À 1.52% See more at WSJMarkets.com
Levered
The share of new U.S. loans backing leveraged buyouts of companies
with debt at least seven times Ebitda has increased recently.
35%
30
25
20
15
10
5
0
2005 ’10 ’15 ’18
Note: Total debt-to-earnings before interest, taxes, depreciation and amortization
Source: LCD, a unit of S&P Global Market Intelligence THE WALL STREET JOURNAL.
Tesla Is
Subject
Of DOJ
.
ly
Probe
AND DAVE MICHAELS
Tesla Inc. on Tuesday said
the Justice Department has
opened an investigation into
the company following Chief
General Mills
Executive Elon Musk’s surprise
(North America)
tweet in August that he had
U.S. food-and-beverage
secured funding to possibly
industry
take the electric-car maker
FY2018 ’19 private.
The company said that last
month it received a “voluntary
request for documents” from
the Justice Department, gener-
ally the first step in a federal
investigation of this kind.
subpoena, a request for testi-
mony or any other formal re-
quest.
Mr. Musk’s decision to
tweet on Aug. 7 his plans to
take Tesla private continues to
Dow Jones hound the company. Last
U.S. Food month, the Securities and Ex-
& Beverage change Commission began in-
index
vestigating whether Mr. Musk
misled investors, and some in-
vestors have sued Mr. Musk
and Tesla, saying they lost
money as a result of the public
statements.
–25
Tesla on Tuesday said it is
cooperating with the Justice
Department probe. “We re-
–30
General Mills spect the DOJ’s desire to get
information about this and be-
lieve that the matter should be
–35 quickly resolved as they re-
J F M A M J J A S view the information they
have received,” the company
Note: General Mills FY2018 ended May 27
said in a statement.
Photo: David Cole/The Wall Street Journal
Sources: the company, Nielsen (growth);
A Justice Department
SIX (share and index performance) spokeswoman declined to
THE WALL STREET JOURNAL. comment. Bloomberg News
earlier reported the Justice
Department had opened a
criminal investigation against
Tesla.
Shares of Tesla fell 3.4% to
$284.96 on Tuesday.
institutions to improve peo- On Aug. 7, Mr. Musk sur-
ple’s commerce experiences, prised investors when he
like enabling better customer tweeted that he was consider-
service, and people opt into ing taking Tesla private at
these experiences,” said Face- $420 a share, about 20%
book spokeswoman Elisabeth above the stock’s trading price
Diana. “We’ve emphasized to earlier that day. In his tweet,
partners that keeping people’s Mr. Musk said the buyout had
information safe and secure is “funding secured,” without
critical to these efforts. That providing any details. Days
has been and always will be later it was revealed that Mr.
our priority.” Musk was still lining up inves-
She said Facebook hasn’t tors and funding for a pro-
used and doesn’t use con- posed deal.
Please turn to page B2 The SEC last month subpoe-
naed Tesla seeking informa-
tion from each of its directors.
The agency last year also be-
gan investigating whether
Tesla misled investors about
production problems with its
Model 3 sedan, The Wall
Street Journal has reported.
A Justice Department in-
vestigation would likely be
criminal because prosecutors
often work in parallel with the
SEC when there is an allega-
tion of securities fraud, said
Michael Liftik, a partner at
Quinn Emanuel Urquhart &
HOT-POT IPO Sullivan LLP.
“If there is a civil case to be
COMES TO brought, the SEC would bring
A FAST BOIL it,” said Mr. Liftik, a former
Please turn to page B2
FINANCE, B14  Market for electric sport-
utility vehicles heats up...... B2
 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.

B2 | Wednesday, September 19, 2018 * *** THE WALL STREET JOURNAL.

INDEX TO BUSINESSES BUSINESS & FINANCE

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

A F-Secure Oyj ............... R5 NordVPN ..................... R5

Alibaba Group.............B4 G-H Nuance Communications
Amazon.com........B6,B16 .....................................R2
General Mills.......B1,B16
American Express.......B2 Goldman Sachs Group O-P
AnchorFree..................R5 ...................................B14 Oracle ........................ B16
Anthem.....................A12 Haidilao International PayPal Holdings..........B2
Apple....................B1,B16 Holding....................B14 Piedmont Healthcare
Audi.............................B2 ...................................A12
I
B R-S
Industrious Office.......B6
Bank of America ... B2,B5 Intel.............................R6 Raytheon.....................R1
Bertelsmann ............... B3 Intercontinental RealPage.....................A3
Blackstone Group ....... B1 Exchange.................B14 Saham Group..............B3
BMW ........................... B2 International Business Samsung Electronics..R5
C Machines...................R2 Social-Engineer...........R4
Cali Group ................... R6 IWG ............................. B6 T
Cboe Global Markets B14 J Tata Motors................B2
Charles Schwab .......... R2 Jaguar Land Rover Tesla.................A2,B1,B2
CMB International North America..........B7 Thomson Reuters.......B1
Capital.....................B14 Jardine Lloyd Thompson Thor Industries...........B7
Cracker Barrel Old Group.......................B14 21st Century Fox......B16
Country Store...........B7 J.C. Penney ............... A10
CrowdStrike ................ R1 U
JPMorgan Chase &B5,R2
D UBS Financial Services
K-L of Puerto Rico .......... B7
Daimler........................B2

Danske Bank...............B3
Dashlane ..................... R5
Diskin Advanced
Technologies.............R2
Dollar Tree .................. B7
Domino's Pizza.........B14
E-F
Knotel..........................B6
Liberty Mutual
Insurance .................. B6
London Trust Media...R5
M .....................................B6
Marsh & McLennan ..B14
Mastercard..................B5
McAfee........................R5
JOE WHITE/REUTERS
UBS Group...................B7
Unisys..........................R1
V
Verizon Communications
VISA ............................ B5
Volkswagen.................B2 Audi, with its electric sport-utility vehicle called the e-tron, is one of several European brands increasing the pressure on Tesla.
W-Y

Market for Electric SUVs Heats Up

eero..............................R5
Encrypt.me..................R5
Erwin Hymer Group....B7
FACC............................R4
Facebook...........B1,B3,R5
Ferrari..........................B8
Fidelity Investments..R2
INDEX TO PEOPLE
B Jensen, Joe.................R6
Bagnall, Ken................R4
Bajaj, Mohit..............B15
Bell, Chris....................R2
Beranek, Brett............R2
Beroukhim, Raffie ...... R6
Burg, Dave .................. R4
C M
Microsoft...................B16
N Walt Disney..............B16
NEC..............................R6
Neiman Marcus...........B3
NewYork-Presbyterian
.....................................A1
Juang, Kevin ............... R4
Juckes, Kit ................ B15
L S
Lima, Pia De................B2
Litan, Avivah...............R1
Lodewijkx, Koos..........R1
Walmart....................A10
Wells Fargo.................B2
Western Union............B2
WeWork ...................... B6
Yum China Holdings.B14
Ritterbusch, Jim.......B15
Roberts, Scott.............B1
Ross, Arun .................. R6
Sarva, Amol................B6
Schneiderman, Eric...B14
Schneider, Marian.......R2
Schoeller, Shane.........R2
BY TIM HIGGINS
Customers like Tom Rich-
mond could become a problem
for Elon Musk and the future
of Tesla Inc.
The consumer-products
consultant is selling his Tesla
Model 3 sedan and replacing it
with a Jaguar I-Pace, a new
sport-utility vehicle made by
the U.K. unit of India’s Tata
Motors Ltd. that Mr. Rich-
mond said, has a romantic
high-end, long-range electric
vehicles. They are gunning for
one of America’s most popular
vehicle categories: SUVs.
On Monday in the San Fran-
cisco area, German auto maker
Audi AG revealed the produc-
tion version of its electric SUV
called the e-tron. It aims to be-
gin selling the spacious, five-
seater in the U.S. next spring
starting at about $75,000,
slightly less than the roughly
$80,000 base price of Tesla’s
start is ending as a wave of
auto makers plan to push out
electric offerings over the
coming months, spurred in
part by regulatory standards
calling for reduced tailpipe
emissions.
Tesla rolled out the Model X
three years ago and it doesn’t
plan to start production of its
next SUV until the second half
of 2020 at the earliest. That
vehicle, the Model Y, will be a
compact SUV, smaller than the
berrino, an analyst for Gold-
man Sachs Group Inc., wrote in
a note to clients this month.
Some analysts, however, ex-
pect the competition to help
Tesla. Toni Sacconaghi, an an-
alyst for Stanford C. Bernstein
& Co., said the new arrivals
will “validate and expand” the
electric-car market.
Tesla declined to comment.
The challengers are arriving
as Tesla struggles to boost
production of the Model 3 se-

.
Castelli, Jackie............R2 Schwartz, Adam.........R6
Ma, Jack......................B4 British sports-car heritage, Model X SUV. roomy, midsize versions from dan, fueling doubts it will have
Shackelford, Scott......R5

Choonshik, Yi............B14
Cochran, Sandra..........B7
D Masterson, Matthew . R2
Diana, Elisabeth..........B1
G
Gjonbalaj, Granit.........B6
Glaser, Dan................B14
Gorodyansky, David....R5
Made, Bart van der..B15
Marty, Raffael ............ R1
Merrill, Denise............R2
Miller, Brendan...........R6
Miller, John.................R6
Milstein, Larry..........B15
Muaddi, Samy...........B15
Sherman, Kathryn ...... R4
Sladden, Chloe............B7
Stein, Sidney...............B7
U
Underwood, Barbara.B14
V
on
Varga, Tamas............B15
us l,
luxurious interior—and runs
on electricity.
“I mean, a Jag, how could
you not?” said the 60-year-old
from St. Petersburg, Fla. “You
sit in any one of them. It is
just the lap of luxury.”
The I-Pace, which starts at
Earlier this month, Daimler
AG’s Mercedes-Benz revealed
its own electric SUV, the EQC,
that will begin production late
next year, ahead of BMW AG’s
plans for an electric version of
the X3 SUV in 2020.
Mr. Musk, Tesla’s chief ex-
ly
the European companies.
The new competitors will be
greeted in the U.S. with $7,500
federal tax credits for buyers
of electric vehicles. Tesla’s
customers have enjoyed the
tax credit, but it will begin to
be phased out next year after
the manufacturing prowess to
churn out tens of thousands of
cars a week as the incumbent
auto makers do.
Traditional auto makers
have an opportunity to lure
potential buyers who are curi-
ous about electric vehicles but

Musk, Elon.............B1,B2 Vullo, Maria .............. B14

Greenstein, Joel..........R4 about $70,000 and arrives in ecutive, is widely credited for the Silicon Valley auto maker unsure about the Silicon Valley
N W U.S. showrooms this fall, rep- proving that electric cars can reached the milestone of sell- company, said Karl Brauer, ex-
H-J
al a

Newfield, Mathew......R1
e
Walkiewicz, David ...... R5 resents the first of a long- be sexy, creating a global lux- ing 200,000 vehicles. ecutive publisher of Kelley
Hadnagy, Christopher.R4
Hall, Joseph................R2 P-R X-Z promised assault by European ury brand with a devoted fol- And that could all weigh on Blue Book and Autotrader. “It
luxury auto makers to chal- lowing beyond environmental- Tesla’s gross margins and fu- will be a very interesting test
ci on

Harmening, Jeff .. B1,B16 Patterson, Donald.......R6 Xiang, Ji....................B14

Jackson, Robert L.....B14 Ramirez, Jose ............. B7 Zhang, Yong..............B14 lenge Tesla with their own ists. But Tesla’s yearslong head ture profitability, David Tam- case,” he said.

Tesla Is tik said. But prosecutors

would have to show the mis-
shares tumbled after Mr. Musk
appeared to smoke marijuana
around the stock makes it
challenging to invest on funda-
er rs

conduct was “knowing and during a late-night interview mentals, currently,” Ben Kallo,

Under DOJ willful,” and not just reckless,

he said.
The go-private drama was
broadcast live on YouTube.
Tesla has struggled for the
past year to speed up its
an analyst for Baird Equity Re-
search, said Tuesday in a note.
Tesla’s stock jumped 11% on
m e

Scrutiny one of several recent episodes

that have caused some inves-
tors and analysts to question
Model 3 production, placing
Mr. Musk under intense scru-
tiny and raising questions
Aug. 7 following Mr. Musk’s
go-private tweets. On Aug. 23,
Mr. Musk told the board he
m rp

Mr. Musk’s fitness as CEO. about the company’s finances. had decided not to follow
Continued from the prior page In July, he suggested on In June, Tesla met its oft-de- through with the proposal.
SEC enforcement attorney. “If Twitter that a British cave ex- layed production milestone of The next day, he tweeted that
KRISZTIAN BOCSI/BLOOMBERG NEWS

the conduct is such that it’s so plorer involved in rescuing a building 5,000 Model 3 cars in “I believe the better path is
serious that the DOJ or the lo- boys’ soccer team in Thailand a single week, a threshold that for Tesla to remain public.”
co Fo

cal U.S. attorney’s office views
it as potentially criminal, then
they investigate the criminal
side.”
The DOJ can use a variety
of statues to prosecute crimi-
nal securities fraud, including
The companies could be fined up to 10% of their annual turnover. the wire fraud statute, Mr. Lif-
was a pedophile, a claim he
later apologized for and then
reiterated. The man filed a
defamation lawsuit on Monday
against Mr. Musk. Tesla de-
clined to comment, and Mr.
Musk couldn’t be reached.
Earlier this month, Tesla
if sustained could help the
company toward its goal of be-
coming cash-flow positive and
profitable in the third quarter.
“We continue to believe
fundamentals are strong
headed into Q3 deliveries, but
we acknowledge the noise
Since Aug. 7, Tesla’s stock
has fallen roughly 25% as
prospects for a deal rose and
fell. The shares are down
about 8% this year after rising
46% in 2017.
—Aruna Viswanatha
contributed to this article.

EU Probes Collusion Facebook move its clients who engage in

private messaging with the

On Exhaust Systems Shifted on

bank on Facebook off of the
site so that Facebook wouldn’t
n-

gain access to their financial

data, according to a person fa-
BY VALENTINA POP ufacturers,”
competition
said EU
commissioner User Data miliar with the matter.
When Wells Fargo & Co. Franklin Limited Duration Income Trust
no

BRUSSELS—The European Margrethe Vestager. launched a chatbot pilot with Transferable Rights Offering for Common Shares
NYSE American Symbol “FTF”
Union’s antitrust body has BMW, Volkswagen and Facebook in 2017, it informed
NYSE American Rights Symbol “FTF RT”
opened a formal investigation Daimler confirmed the investi- Continued from the prior page customers that Facebook Ex-date is September 20, 2018
into possible collusion among gation and said they were co- sumer financial data for so- would have access to their Record date is September 21, 2018
Germany’s big car makers to operating with the commission. called ad targeting, or placing Messenger conversations with Last trading day for rights is October 17, 2018*
limit the development of tech- Daimler said the probe was ads in front of specific audi- bank representatives, per its Offer expires October 18, 2018*
*Unless extended
nology that would reduce limited to Europe. Daimler and ences. data policy. “Customers were
harmful exhaust emissions. BMW said the launch of a for- Facebook’s negotiating cautioned that they should not
The European Commission, mal probe isn’t a finding that stance with financial firms enter account numbers or For more information and a prospectus, contact:
the bloc’s antitrust regulator, there was a violation. evolved over the years, rang- other sensitive data in their
said Tuesday the probe stems EU rules prohibit agree- ing from asserting ownership chatbot conversations,” a
from inspections it conducted ments and concerted practices of all data that passes through spokeswoman said. The 5,000-
in October 2017 at the premises that may affect trade and pre- its servers to, later on, allow- customer pilot ended in April.
of BMW AG, Daimler AG and vent or restrict competition. ing financial firms to restrict PayPal Holdings Inc., Call Toll-Free: +1-866-304-5477
Volkswagen AG and its Audi The commission declined to its use of the information. Sev- which allows users of the pay-
subsidiary. The raids were comment on the size of a po- eral of the deals were negoti- ment service to send money
prompted by information from tential fine for the car makers ated ahead of Facebook’s 2017 through Messenger, negotiated
Volkswagen that those compa- as a result of probe, which developer conference, when a custom contract that prohib- Dealer Manager
nies had jointly discussed the could last months. Under anti- over a dozen companies in its Facebook from using PayPal
development and deployment of trust rules, the companies multiple industries, including customers’ data for advertis-
emissions-control technologies. could be fined up to 10% of financial services, launched ing or any of Facebook’s own
The probe follows several their annual global turnover. services on Messenger. commercial purposes, the
scandals over European car A similar antitrust investiga- Prior to the launch, Face- company said.
manufacturers cheating on tion in 2016 and 2017 into six book’s privacy policy said “we Western Union Co., which
emissions testing. European truck makers, includ- use all of the information we also launched a Messenger- September 19, 2018
The commission said Tues- ing Daimler, resulted in total have about you to show you based money-transfer service An investment in Franklin Limited Duration Income Trust (the “Fund”),
day it found no evidence the fines of €3.8 billion. One of the relevant ads.” at the 2017 developer confer- a diversified, closed-end management investment company, is subject to
companies worked with each charges in that probe was collu- In conversations with ence, has a custom deal that investment risk, including the possible loss of the entire principal amount invested.
Investment return and the value of stock will fluctuate. The rights offering
other to cheat on regulatory sion to delay the introduction of American Express Co. in 2016, “reflects our privacy obliga- is subject to certain risks, including economic dilution and voting dilution.
testing. However, it did find emission technologies for trucks. Facebook executives said they tions to our customers,” said
All of the costs of the rights offering, including offering expenses and sales load,
enough evidence to open for- Volkswagen admitted in wanted to use individualized spokeswoman Pia De Lima. will be borne by the Fund and indirectly by all of its Common Shareholders,
mal proceedings against the 2015 to rigging nearly 11 mil- cardholder spending data that The deals predate a more including those who do not exercise their rights. The rights are transferable and are
expected to be admitted for trading on the NYSE American during the course of the
three auto makers for colluding lion diesel-powered vehicles passes through Facebook, a recent Facebook effort, re- offer; however, there can be no assurance that a market for the rights will develop.
to limit the development of two with software that allowed person familiar with the mat- ported by The Wall Street
emission systems: selective cat- them to cheat on emissions ter said. That would have al- Journal last month, to form Investors should carefully consider the Fund’s investment objectives and policies,
risks, and charges and expenses before investing. The Fund’s prospectus supplement
alytic reduction systems, which tests. lowed them to use the data for partnerships with big banks to and accompanying prospectus, which contains this and other information about
reduce harmful nitrogen-oxides Last year Volkswagen asked ad targeting, the person said. offer a range of customer ser- the Fund, when available, can be obtained, by calling the phone number listed
above. An investor should carefully read the Fund’s prospectus supplement and
emissions from passenger cars the EU regulators to scrutinize AmEx didn’t want Facebook vices through Messenger, in- accompanying prospectus before investing. This communication is not an offer
with diesel engines, and so- decades of possible coordina- to use individualized data for cluding fraud alerts. The com- to sell these securities and is not soliciting an offer to buy these securities, nor
shall there be any sale of these securities in any state where the offer,
called Otto particulate filters, tion by the country’s main auto anything besides servicing pany said it wouldn’t use any solicitation or sale is not permitted.
which reduce harmful particu- makers. At the time, BMW de- cardholders who opted into information obtained through
UBS Securities LLC is acting as dealer manager for the rights offering. In the U.S.,
late-matter emissions from nied it had cooperated with its the chatbot, the person said, those services for ad-targeting securities underwriting, trading, and brokerage activities and M&A advisory
cars with petrol engines. rivals to manipulate diesel en- and instead agreed to provide purposes. activities are provided by UBS Securities LLC, a registered broker / dealer that is
“If proven, this collusion gines for reducing nitrogen-ox- aggregated transaction data Banks have been hesitant to a wholly owned subsidiary of UBS AG, a member of the New York Stock Exchange
and other principal exchanges, and a member of SIPC.
may have denied consumers ide emissions. for ads and other purposes. give too much control to Face-
the opportunity to buy less pol- —Ruth Bender After Bank of America book.
© UBS 2018. All rights reserved.
luting cars, despite the technol- and William Boston Corp. reviewed Facebook’s —Peter Rudegeair
ogy being available to the man- contributed to this article. terms, it decided it would contributed to this article.
 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.
THE WALL STREET JOURNAL.
Venture
Forms to
Moderate
Content
BY SARA GERMANO
BERLIN—Bertelsmann SE
has agreed to merge the part of
its business that offers content
moderation services for the
likes of Facebook Inc. with a
competitor, the German media
conglomerate said Tuesday.
Bertelsmann’s Arvato cus-
tomer-relations management
division runs centers in Ger-
many and elsewhere where
workers pore over social-media
content that has been flagged as
objectionable. The task has
taken on a higher profile as gov-
ernments increasingly demand
moderation of online content.
But the unit hasn’t been
growing as quickly as Bertels-
mann had hoped, and the com-
pany said in January it was con-
sidering options for the
business. On Tuesday, it an-
nounced a merger between the
unit and the customer-relations
business of Morocco-based Sa-
ham Group to form a company
in which both sides will retain a
50% stake.
Saham Group has worked
with Bertelsmann since 2004
on their customer-relations
businesses.
The move comes as Bertels-
mann sharpens its focus on
faster-growing parts of its em-
pire, including digital entertain-
ment and online education.
The privately owned German
conglomerate owns or controls
stakes in book publisher Pen-
guin Random House, music la-
bel BMG and digital entertain-
ment provider RTL Group,
among others, and has been
adding to its Bertelsmann Edu-
cation Group with acquisitions
as recently as this week.
In a statement, Bertelsmann
Chief Executive Thomas Rabe
said the Gütersloh, Germany-
based company plans to invest
“several hundred million euro
in the next years” in the new
joint venture.
no
Lack of speech is a sign of autism.
Learn the others at autismspeaks.org/signs.
Danish Bank Knew of Russia Clients
Bank officials at the center
of one of Europe’s largest
money-laundering scandals
knew earlier than previously
indicated about problems at
its tiny Estonian branch, in-
cluding that it held accounts
for blacklisted Russian clients,
By Patricia
Kowsmann,
Drew Hinshaw
and Bradley Hope
according to correspondence
seen by The Wall Street Jour-
nal and Estonia’s financial reg-
ulator.
It is the latest indication
that officials at Danske Bank
were aware almost two years
before it started shutting
questionable accounts that the
small but highly profitable
branch was involved in poten-
tially illicit money flows.
Danske, Denmark’s biggest
bank, is being probed by U.S.
authorities who want to know
Neiman Posts Loss, Accelerates Digital Push
BY SUZANNE KAPNER
Neiman Marcus Group Ltd.
reported stronger quarterly
sales, as the luxury retailer
benefits from robust spending
by wealthy consumers.
But it lost $75.3 million for
the period ended July 28,
compared with a loss of
$366.3 million a year earlier.
The year-earlier loss included
a $357 million impairment
charge to write down the
value of its brand names.
Chief Executive Geoffroy
us l,
van Raemdonck, who suc-
ceeded Karen Katz in Febru-
al a
e
ary, has been working to stabi-
lize the business, which is
saddled with buyout debt.
ci on
In an interview, Mr. van
Raemdonck said he is doubling
the amount of money invested
in digital initiatives such as
data mining and supply-chain
er rs
improvements to make the
customer experience more
personalized. “Access to cus-
m e
m rp
co Fo
n-
BUSINESS NEWS
why its tiny branch in the for-
mer Soviet republic of Estonia
processed as much as $150 bil-
lion in transactions from 2007
to 2015 from foreign countries,
mainly Russia.
Denmark’s politicians—and
a falling share price—have put
pressure on the bank to dis-
close how much its executives
knew about any suspicious
money shifting through there.
The bank is scheduled to dis-
close findings from an internal
probe on Wednesday.
A Danske spokesman de-
clined to comment.
In an April 2013 email, Dan-
ske Bank’s anti-money-laun-
dering chief, based in Den-
mark, asked colleagues in the
Estonia branch about client
accounts whose owners ap-
peared on a blacklist gener-
ated by Russia’s central bank.
Russia’s central bank keeps a
database of individuals and
companies suspected of finan-
cial wrongdoing—about
on
A Neiman Marcus store in Fort Worth, Texas, last year. The luxury retailer is raising its spending.
tomers is more valuable than
access to brands, because cus-
tomers can find products ev-
erywhere,” the former Ralph
Lauren Corp. executive said.
“The reason for customers to
Jacob Sanchez
Diagnosed with autism
500,000 presently—and shares
it across borders.
Estonian authorities had re-
peatedly complained to Den-
mark’s banking supervisor, the
email said: “They have the im-
pression that we do not take
the issue very seriously,”
wrote Niels Thor Mikkelsen,
‘They have the
impression that we do
not take the issue
very seriously.’
the bank’s then-compliance ex-
ecutive.
The Danish Financial Super-
visory Authority—in charge of
making sure Denmark’s banks
obey anti-money-laundering
rules—was “very worried be-
cause they have confirmed to
U.S. authorities that we com-
shop with us is we will have
the ability to get to know
them better than anyone else.”
The increase in digital ex-
penditures is part of a broader
plan to ramp up spending. Net
Wednesday, September 19, 2018 | B3
ply with Danish [anti-money- tween 2012 and 2014. Danske
laundering] requirements,” he
wrote, copying the email to
several employees of the
says the information it re-
ceived came from the branch.
The Russian Central Bank
branch. “The Danish FSA has
helped the Bank in a critical
situation. They are now very
didn’t immediately respond to
requests for comment.
The email about the Rus-
worried.” sian blacklist indicates Danske
It wasn’t clear, Mr. Mik- Bank officials were aware of
kelsen wrote, if Danske Bank’s problems in the first half of
Estonia branch was indeed in 2013.
compliance. He asked a series According to a statement it
of questions about the black- published in July, Danske said
listed clients, such as “How do it got word of serious prob-
we handle their relationship?” lems at its Estonia branch
Mr. Mikkelsen declined to when a whistleblower tipped
comment, citing legal secrecy. them off in December 2013.
In an email Tuesday, Estonia’s Banking blacklisted clients
Financial Supervision Author- could put Danske afoul of reg-
ity confirmed it repeatedly ulators in Russia, where the
complained to Danish counter- Danish bank has a subsidiary.
parts about the branch’s black- “The Russian Central Bank
listed customers. is by Russian standards rela-
A spokesman for the Danish tively reputable,” said Mark
FSA referred to a paragraph in Galeotti, an expert on Russian
a reprimand ruling it issued financial crime at Prague’s In-
against Danske in May, which stitute of International Rela-
says it received “misleading” tions. “You take the names
information from the bank be- that are on that list seriously.”
Mr. van Raemdonck said he
also wants digital sales to ac-
count for half of Neiman’s rev-
enue, up from about one-third
currently. To that end, he
hired Amazon.com Inc. veteran
Darcy Penick as president of
.
its ultra-high-end Bergdorf
ly
Goodman brand. Ms. Penick,
COOPER NEILL FOR THE WALL STREET JOURNAL
who started Sept. 4, was most
recently chief executive of
Shopbop, a luxury fashion
website owned by Amazon.
The recently completed
quarter is the fourth consecu-
tive period in which Neiman’s
sales rose. Same-store sales in
the period increased 2.3%. For
the year, sales totaled $4.9 bil-
lion, compared with $4.7 bil-
lion a year earlier.
Mr. van Raemdonck said he
is looking at potential acquisi-
capital expenditures will range tions and partnerships that
from $170 million to $190 mil- would give Neiman more of a
lion in the current fiscal year, global reach. All of its 42 Nei-
compared with $155 million to man Marcus stores and two
$165 million in the recently Bergdorf Goodman stores are
completed year. located in the U.S.
World-Leading Cyber AI
 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.
B4 | Wednesday, September 19, 2018
CHINATOPIX/ASSOCIATED PRESS
Mr. Ma says government officials called to say ‘ “Are you crazy?” ’
Sizing Up your decision from there.
Big screen. If you want a
ginormous screen on an
iPhone XS, iPhone, the XS Max’s beauti-
ful 6.5-inch OLED display is
here for you. Surprisingly,
XS Max
the XS Max is about as large
as the older iPhone Plus
models—its screen just cov-
ers more of the phone’s face.
Continued from page B1 The only way I could make
direction for you. the Max look small was to
With subtle but strong im- put it in the hand of Gheor-
provements over last year’s ghe Mureșan, who shares the
X, (subtle, that’s what the S record for tallest basketball
us l,
stands for, right?) the XS player in NBA history.
and XS Max are fabulous Taking photos, watching
al a
e
phones. But we’ve hit a point videos, FaceTiming, Fortniting,
where every smartphone is even writing emails felt more
great—it comes down to immersive on the big phone.
ci on
what you want and what you But two things hold me back
want to spend. from going to the Max.
With that, I present a 1. Apple isn’t doing
choose-your-own-adventure enough to take advantage of
iPhone XS and XS Max review. all the extra space. The Max
er rs
Choose which iPhone features just feels like a blown-up
matter to you most, ignore iPhone, when it could be a
Apple’s time frame and make new sort of computer. Unlike
m e
m rp
co Fo
World-Class CFOs Driving the
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TECHNOLOGY
Ma Defends Exit Decision
BY LIZA LIN
Billionaire Jack Ma said
China’s government didn’t
push him to step down as
head of Alibaba Group Hold-
ing Ltd., blaming rumors ema-
nating from outside China for
fueling such speculation.
Alibaba’s executive chair-
man told investors at an event
in the e-commerce giant’s
home city of Hangzhou on
Tuesday that his coming re-
tirement had been planned for
a decade. The timing of the
announcement earlier this
month that Mr. Ma, 54 years
old, would hand over the reins
to Chief Executive Daniel
Zhang next September caught
many by surprise.
Chinese government offi-
cials, he said, called him to ask
“ ‘Are you crazy?’, ‘What hap-
pened?’, ‘Is it something pain-
ful?’, ‘Or some disease, or
what?’ I said, ‘No!’ ” he said
during a speech at Alibaba’s
headquarters. “I’ve also got
rumors from outside China,
saying, ‘It’s because the gov-
ernment wants to push you
down.’ Nobody can, if you
Samsung’s Galaxy Note or
even Apple’s iPad, you can’t
place apps side by side or
float a video in the corner.
2. One-handed use is a
struggle at times with
smaller hands, especially
typing—even with Apple’s
“reachability” trick that lets
you shift the screen down
onwhen needed. The XS is
more of a “just right” fit for
my hand and pocket. Even
the XR felt much smaller
than the Max.
Big battery life. The XS
Max’s battery life also makes
it tempting. It generally
lasted one to two hours lon-
ger during the day than my
X. (As a heavy smartphone
user—yes, I’m working on
it—I typically charge my X
midafternoon to carry me
until bedtime.) In my video
streaming tests, the XS Max
streamed Netflix for nearly
13 hours; the XS lasted 10.5
don’t want to leave, right? I
know it’s nothing about the
politics or government.”
The timing of Mr. Ma’s re-
tirement prompted specula-
tion that his stepping aside
was linked to closer govern-
ment scrutiny of China’s big-
gest technology companies,
part of Beijing’s tightening of
its grip on private enterprises.
A day before the Hangzhou
speech, Mr. Ma signaled frus-
tration with bureaucratic med-
dling, telling a government-
sponsored forum in Shanghai
that regulators should take a
lighter touch in dealing with
technology companies and al-
low the market to decide how
new industries such as artifi-
cial intelligence develop.
The founder led Alibaba’s
growth from a domestic
wholesale website in 1999 to
an internet conglomerate with
interests in e-commerce, mo-
bile payments, cloud services
and digital media. Mr. Ma, one
of China’s richest people, with
a fortune estimated at more
than $36 billion, is no stranger
to the limelight, often speak-
ing his mind on topics such as
hours and the older X went
just 9.5 hours.
But the XR might outlast
them all. According to claims
on Apple’s website, the XR
will last 1.5 hours longer
than the 8 Plus model—and
it’s rated to have longer bat-
tery life than the XS Max
when it comes to internet
and video usage.
Big camera. If you are up-
grading from any of the
smaller iPhones of the past
few years, the XS and XS
Max cameras will be a big
leap. (Both XS models have
the new dual cameras.) If
you’re considering going
from the X or the iPhone 8
Plus to the XS because of
cameras, though, it’s more of
a mini hop.
The neatest trick is the
new advanced depth control
in portrait mode. With this
effect, you can simulate the
artistic blur around your
The Wall Street Journal CFO Network
is an exclusive membership for Chief
Financial Officers from the world’s
largest and most influential companies
collaborating on the most pressing issues
in global financial leadership.
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THE WALL STREET JOURNAL.
U.S.-China trade or govern-
ment-business relations.
The internet billionaire also
said Tuesday that his depar-
ture had nothing to do with
the trade friction between the
U.S. and China. Mr. Ma said he
was giving up his position af-
ter having groomed a team of
senior leaders at Alibaba
driven by a similar mission
and values as the company’s
original team of founders.
Alibaba’s chairman
says the Chinese
government didn’t
force his departure.
The timing of the an-
nouncement, he said, was de-
cided when he realized he had
spent at least 60 days away
from the company, pursuing
his own philanthropic causes
such as education and promot-
ing entrepreneurship, without
receiving a single phone call
from the office. Mr. Ma will re-
subject that photographers
call bokeh. But I found that
the phone still can’t always
get the blurring right around
the edges of certain objects.
The smart HDR feature and
.
new sensors did make for a
ly
more even and clear photo
when shooting almost di-
rectly into brighter lights—
plus crisper, more colorful
low-light shots—but overall
my photos looked similar to
the ones I’ve taken with the
X. In many cases, they were
not as good as shots I’ve
taken with the Samsung Gal-
axy Note 9 or Google Pixel 2.
What is noticeable? Auto-
focus and launching the cam-
era on the XS models are
speedier than on the X. Ap-
ple’s new A12 Bionic proces-
sor also made augmented-re-
ality apps on the XS feel less
jittery. Everyday actions are
faster, too—even just press-
ing the reply button in the
WSJ.com/Tech
main on the company’s board
until its annual shareholder
meeting in 2020.
Operating conditions for
China’s largest technology
companies have become in-
creasingly restricted in recent
years as internet companies
have grown in influence in
China. In the past year, Ten-
cent Holdings Ltd., China’s
biggest social-media network
and game company, has been
caught in a regulatory clamp-
down on excessive game play-
ing, a move that has seen it
remove games from circula-
tion. Alibaba’s mobile-payment
affiliate, Ant Financial Ser-
vices Group, has come under
heightened scrutiny from reg-
ulators. It was singled out in
January for violating national
standards on the protection of
personal data.
Fast-growing technology
startups haven’t been spared.
Beijing Bytedance Technology,
which runs popular apps such
as the news aggregation plat-
form Jinri Toutiao, was taken
to task twice over the summer
for spreading content that in-
sulted national heroes.
Gmail app. The XR will have
the same processor.
Newest iPhone. Oh, you’d
upgrade to the newest
iPhone even if Apple only
changed the color of the vol-
ume button? Don’t worry,
this is a judge-free zone.
Still, unless you are in an
iPhone upgrade program or
absolutely dying for that
Max screen, don’t jump from
the X to the XS. Going back
to last year’s model, I missed
the speed boost a bit, but
not enough to drop another
grand or more. (That said,
upgrading to iOS 12 will also
speed up certain things, es-
pecially on older phones.)
I realize this review may
not have answered all your
questions. Don’t blame me,
blame Apple…and keep your
wallet closed. See you in a
month with the XR review.
All the best,
Joanna
 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.

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B4B | Wednesday, September 19, 2018 NY THE WALL STREET JOURNAL.

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THE WALL STREET JOURNAL. Wednesday, September 19, 2018 | B5

BUSINESS NEWS

Mastercard, Visa
Agree to Settle
Antitrust Suit
BY KIMBERLY CHIN
Mastercard Inc., Visa Inc.
and other financial institu-
tions have agreed to a $6.2
billion settlement of a long-
running antitrust lawsuit over
the fees merchants must pay
when they accept card pay-
ments.
The proposed amount cov-
ers $900 million to be paid by
all of the institutions, includ-
card, which settle the fees
with the banks independently.
The defendants involved in
the case said that the part of
the suit that seeks to revise
network rules isn’t covered by
Tuesday’s settlement and
won’t result in any immediate
action while the parties en-
gage in negotiations.
The settlement Tuesday,
which was originally reported
by The Wall Street Journal in

CHRIS CARLSON/ASSOCIATED PRESS

ing a number of banks that is-
sue debit and credit cards,
such as JPMorgan Chase &
Co., Citigroup Inc., and Bank
of America Corp.
It also includes about $5.3
billion already paid by the de-
fendants as part of a $7.25 bil-
lion settlement reached in
June, is still subject to court
approval. If approved, it
would cap a class-action law-
suit that was brought by mer-
chants in 2005 against Visa,
Mastercard and the largest
U.S. card-issuing banks.
When the $7.25 billion set-
tlement was reached in 2012,
many large merchants opted Yusaku Maezawa, the head of Japan’s biggest online shopping mall, said he plans to bring artists along on his space journey in 2023.

Mogul Shoots for the Moon

Card networks have
come under scrutiny
over so-called
interchange fees.
2012—a settlement that many
merchants decided to opt out
of.
out largely due to terms that
would have barred them from
filing lawsuits against the net-
works over future swipe-fee
increases. An appeals court
invalidated that settlement on
the grounds that merchants First paying passenger for the ride wasn’t disclosed. a market capitalization of ness in the world of art.”
weren’t adequately repre- “Ever since I was a kid, I about ¥1 trillion ($8.94 billion) He said in the interview
sented. for Elon Musk’s SpaceX have loved the moon,” he said as of Tuesday trading. that he hoped his art pur-
The Supreme Court last flaunts his fortune at an event in California with Recently, Zozotown has chases would be a catalyst for
year declined to hear the case, Mr. Musk. “It’s always there caught the attention of inves- his company to gain ground
shifting it back to the district made in e-commerce and has continued to inspire tors by introducing Zozosuit, a abroad. Mr. Maezawa has said
court. humanity.” suit that allows an app to take he aims to increase his com-

.
Visa’s share of the new set- In this case as well, Master- BY MEGUMI FUJIKAWA Last year, Mr. Maezawa precise measurements of cus- pany’s market capitalization to

tlement is $600 million, which
it said it had already set
aside. Including the 2012 set-
tlement, Visa’s share is $4.1
billion.
Mastercard will pay an ad-
ditional $108 million, on top
of the $790 million it agreed
card and Visa said they expect
to be relieved of all future
monetary claims alleged by
the class-action suit related to on online shopping mall—and the
the company’s interchange
and fee structure, as well as
merchant acceptance rules for
at least a period of five years
us l,
TOKYO—Yusaku Maezawa,
the head of Japan’s biggest
first paying passenger for Elon
Musk’s SpaceX—is known for
his flashy personal life.
The 42-year-old e-com-
paid $110.5 million for a Jean-
Michel Basquiat painting of a
black skull. He previously
spent $57.3 million for a
larger, untitled Basquiat that
featured a devil and $22.6 mil-
lion for a rainbow-colored
Pablo Picasso portrait, “Head
ly
tomers’ entire body so that
they can order the correct size
on the website. The company
plans to distribute 10 million
suits free of charge within the
year to promote sales.
Although Mr. Maezawa said
his planned trip around the
¥5 trillion within the next 10
years and bring in 80% of its
revenue from outside Japan by
that time.
The company recently
started selling clothes abroad
under its own brand, Zozo,
and projects ¥2 billion in sales

to pay in the earlier settle-
ment.
The merchants allege that
the card networks have inten-
tionally set fees and card-ac-
after resolution of appeals.
The card networks have
al a
e
come under scrutiny in partic-
ular over the fees they charge
merchants when a consumer
ci on
merce mogul, who is also an
art collector, used social media
to flaunt his plan to travel on
Mr. Musk’s space vehicle on a
journey around the moon. “I
of a Woman (Dora Maar).”
Mr. Maezawa founded Start
Today Co. in 1998 as a seller
of imported records and CDs.
He started the online fashion-
moon was a “personal activ-
ity,” it is his strategy to use
his private activities to open
doors for his business.
“People don’t recognize me
for the brand outside Japan in
the year ending March 2019.
Mr. Maezawa’s private life
also drew attention recently
when he started dating Japa-

ceptance rules that primarily
benefit the banks.
The merchants also argue
that they should have the abil-
ity to negotiate their own fees
swipes a card, known as inter-
change fees.
The card networks set the
fee and the merchants pay the
banks. Yet the merchants in
er rs
choose to go to the moon,
with Artists,” he tweeted on
Tuesday local time.
Mr. Maezawa said he is in-
viting six to eight artists to
retail website Zozotown in
2004, and it has taken off in
recent years among Japanese
clothes buyers because it of-
fers a variety of brands on a
when I say ‘I’m Maezawa from
Start Today’ but they know
Maezawa who has bought Bas-
quiat,” Mr. Maezawa said in an
interview after he made the
nese actress Ayame Goriki, the
latest in a string of celebrity
companions for the fashion ex-
ecutive. The new couple put a
video of themselves on Insta-

directly with the banks in-
stead of through card net-
works like Visa and Master-
no
the suit allege that the net- join his trip to space in 2023, single site. purchase in May 2017. “I get to gram, and Ms. Goriki adver-
works and banks have col- a project he named “#dear- Start Today is listed on the meet people that I might not tised her love for Zozotown on
luded to inflate those fees. Moon.” The price he will pay Tokyo Stock Exchange and had have met in the fashion busi- her Instagram account.
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 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.

B6 | Wednesday, September 19, 2018 THE WALL STREET JOURNAL.

THE PROPERTY REPORT

Flex-Space Giant Takes On Manhattan
After recent deal, the
city’s largest office Company to Curb
tenant rents 5.3 million Noncompete Pacts
square feet of space
WeWork Cos. agreed to
BY KEIKO MORRIS curtail its practice of requiring
AND ELIOT BROWN most employees to sign broad
noncompete agreements, as
WeWork Cos. now occupies part of a settlement with the
more Manhattan office space attorneys general of New
than any other company, a York and Illinois.
milestone that reflects boom- The shared-office
ing demand for flexible work- company previously had
space among legions of small required “nearly all”
and midsize firms—and, in- employees, including baristas
creasingly, larger companies, and receptionists, to sign
too. agreements barring them
The co-working company from working at similar
rents 5.3 million square feet in businesses for a year after
Manhattan. WeWork calcu- leaving WeWork, the New
lated that a lease it recently York attorney general’s office
signed for 258,344 square feet said in an announcement of
at Penn Plaza pushed its total the settlement Tuesday.
STEVE REMICH FOR THE WALL STREET JOURNAL

past the 5.2 million square WeWork agreed to release

feet of space rented or owned 800 rank-and-file employees
by JPMorgan Chase & Co., ac- in New York and an additional
cording to real-estate services 600 employees nationwide
firm Cushman & Wakefield. from their noncompetes. A
WeWork is one of the big- further 1,800 employees
gest and fastest-growing of nationwide will be given less-
the “flex space” office provid- restrictive terms on their
ers, a group that also includes agreements. As of April,
Knotel Inc., Industrious Of- WeWork had nearly 3,300
fice and IWG PLC. These com- employees in the U.S., with
panies rent office space from 2,300 of them in New York.
building owners, then sublease Flex-space operators accounted for 9.7% of Manhattan’s new leases signed in the first eight months of this year. Many companies use
it for as short as a month or noncompete agreements to
up to three years. They offer taking space through WeWork rapid growth is largely a func- at a roughly $40 billion valua- discourage upper

.
tenants greater flexibility than and its peers. WeWork’s Rise tion of the long economic ex- tion, according to people fa- management from defecting

ly
do traditional landlords, which These companies typically pansion. They suggest the miliar with the matter. to competitors. Critics,
The co-working giant has
typically lock in renters for a welcome the greater flexibility business model could face new Granit Gjonbalaj, WeWork’s though, say the agreements
added millions of square feet.
decade or longer. of shorter leases, and in some challenges when the economy chief development officer, said are extending even to
The New York–based com- cases exposure to entrepre- on 30 million square feet slows. that the company is positioned employees who don’t have
pany and similar flex-space neurs and startups leasing in WeWork and its peers are to accommodate large busi- access to trade secrets.
operators have made big the same building. Rest of world typically on the hook for fixed nesses shrinking their offices “Too often, noncompete
strides in New York City this “The ability to act quickly New York City rents of 10 to 15 years, but during a downturn because agreements are misused,”
year. They accounted for 9.7% and get into a market and cap- their subtenants can bolt after these clients will want to said New York Attorney
us l,

of Manhattan’s new leases ture the talent you want to get
signed in the first eight is much more critical than be-
al a
e
months of 2018, compared fore,” said John Vazquez, a Ve-
with 3.3% in all of 2017, ac- rizon senior vice president.
cording to real-estate services Verizon has short-term
ci on
20
only a fraction of that time,
potentially leaving co-working
companies stuck with empty
space for long stretches.
10 That is what happened in
avoid long-term leases.
Mr. Vazquez at Verizon
agreed that flexibility is im-
portant. “The benefit to co-
working versus fixed space is
General Barbara Underwood,
“limiting employees’ mobility
and opportunity and
preventing businesses from
hiring the best person for the

firm CBRE Group Inc. flexible leases in cities includ-
Co-working companies ini- ing New York, Los Angeles and
tially filled their offices pri- Dallas, with some locations ac-
marily with startups that were commodating as many as 300
eager to work alongside other people, Mr. Vazquez said. The
er rs
2001 to Regus PLC, a Europe-
based flex-space company now
known as IWG, which grew
rapidly during the dot-com
0 boom before its rents and oc-
that you only pay for the
space you use,” he said.
Flex-space companies typi-
cally charge hefty premiums
compared with standard
job.”
A WeWork spokesman
said the company had been
revamping employee
processes at the time of the

young firms. Tenants wel- telecom company has more
comed WeWork amenities like than 6,000 employees in 54
comfortable lounges with cu- flex-space locations across the
cumber water and beer on tap. U.S. It expects that head count
m e
2010 ’12 ’14 ’16 ’18 cupancy levels plummeted space—often twice or three investigation.
Source: the company during the bust. Its U.S. arm times the price per square If there is no legitimate
THE WALL STREET JOURNAL. ended up filing for bankruptcy foot—though tenants save the business interest to a
protection in 2003. cost of renovations. WeWork noncompete, such as

More recently, co-working to reach 10,000 by 2021. dustrious Office, IBM leases a SoftBank Group Corp. has also packs tenants in at a high protecting client names or
companies have fueled their Overall, co-working and WeWork building and Omni- made a big bet on co-working. density, around 55 square feet trade secrets, courts generally
growth by attracting bigger other flex-space companies com is using Knotel. Other big The Japanese technology in- per desk, compared with up to won’t enforce them, said Evan
m rp

firms that once expressed lit- control 59 million square feet
tle interest in flexible office of U.S. office space, up from 12
space. Divisions of Ama- million in 2010, real estate
zon.com Inc., Verizon Com- services firm JLL said.
munications Inc. and Liberty Consulting firm McKinsey &
co Fo
corporations are testing the
waters, according to Amol
Sarva, Knotel’s chief executive.
“The stage we’re in now is
mass piloting,” he said.
vestor and other backers have
poured more than $5 billion
into WeWork, which was val-
ued in 2017 at $20 billion. The
eight-year-old company is in
150 for standard offices.
Some analysts expect flexi-
ble space could make up as
much as 15% of the real-estate
portfolios of large companies
Starr, an economist at the
University of Maryland, who
studies the effects of
noncompetes.
—Eliot Brown

Mutual Insurance are now Co. has taken space with In- Skeptics say co-working’s the process of raising money in the next three to five years.

Times Square Theater to Get $100 Million Overhaul

BY KEIKO MORRIS

One of the last remnants of

Times Square’s past of dilapi-
dated store fronts, sex shops
and crime is about to get a
$100 million makeover.
n-

The Times Square Theater

on New York’s West 42nd
Street has been closed for
nearly three decades, detached
no

from the transformation of the

blighted area into a tourist
destination with Hershey’s
Chocolate World, an Old Navy
clothing store and the Nasdaq
Stock Market.
Now, a New York developer
is reviving it. Stillman Devel-
opment International LLC,
which last year signed a lease
for up to 73 years, is planning
to restore the theater’s his-
toric architecture, combine it
with fresh design and lease
the property to retailers.
Stillman is betting that the
former theater’s high ceilings,
views of the Times Square
neighborhood and large out-
door space will appeal to
brands that want a store that
can double as an attraction
and lure online shoppers from
their couches.
It is a formula that has The Times Square Theater’s grand dome will be restored under a revitalization project by Stillman
been used by other retailers Development International LLC that will include fresh retail space in the historic structure.
nearby. Recent offerings in-
clude interactive retail and en- shopping corridors, Times for 120 years has been to en- colonnade on the second floor
tertainment concepts such as Square has remained busy. The tertain, so it’s not surprising will be encased in glass to
the NFL Experience Times six-block stretch received to me that entertainment overlook 42nd street. Stillman
Square, which allows football nearly 419,000 average daily themed retail and food and also is adding a glass box of
fans to simulate calling a play visitors in August, up 13.7% beverage are driving the bulk two additional floors and out-
in a team huddle. Another at- from a year earlier, according of leasing there,” said Steven door space.
traction from National Geo- to the Times Square Alliance, Soutendijk, an executive man- It said it would also restore
KELLYANN PETRY FOR THE WALL STREET JOURNAL (2)

graphic animates ocean life in a nonprofit that advocates for aging director at Cushman. the large, decorated plaster
an immersive exhibit using ad- neighborhood businesses and Stillman, which has formed proscenium arch that once
vanced digital technology. public improvements. a partnership with South Ko- framed the stage, the opera
“We wanted to design a Vacancy rates in the second rean financial firm Daishin Se- boxes flanking the arch as well
project that would be insu- quarter dropped to 15.6% from curities Co. for this venture, is as a 35-foot diameter dome.
lated from the risks of e-com- 22% in 2016, according to spending $100 million for the Stillman said it has received
merce,” said Roy Stillman, Cushman & Wakefield. Average makeover. The developer hired approval from the city historic
president of Stillman. Restora- ground-floor asking rents in Beyer Blinder Belle, an archi- preservation committee for its
tion and the theater’s conver- the most coveted six-block tecture and design firm with preliminary design.
sion are expected to begin this stretch along Seventh Avenue an expertise in historic preser- Opened in 1920, the Times
year and be completed within and Broadway are nearly vation. Its plan involves lifting Square Theater was one of
two years, the company said. $2,000 a square foot, according the theater’s limestone facade several Broadway playhouses
While vacant storefronts to the real-estate services firm. by 5 feet to create higher ceil- clustered on the block between
pockmark many New York City “Times Square’s purpose ings on the ground floor. The Seventh and Eighth Avenues.
 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.
THE WALL STREET JOURNAL.
Women Trail in Owning Startup Stakes
BY YOREE KOH
Female employees at start-
ups typically get less than half
the amount of equity of their
male peers, according to a new
study, highlighting one factor
that has limited women’s in-
volvement in the Silicon Valley
wealth-generating machine.
Female employees own 47
cents for every dollar of equity
a male employee owns, ac-
cording to a new study re-
leased by Carta, a Palo Alto,
Calif., company that helps
startups manage employee and
investor equity. The equity
discrepancy is even starker for
female founders: Women
founders own 39 cents of ev-
ery dollar of equity a male
founder owns.
The survey included a range
of industries and covers the
entire U.S. But it is perhaps
most relevant in the tech in-
dustry, which is built on the
model in which employees
Class Action Denied for Investors Stung by UBS Funds
BY ANDREW SCURRIA
Investors who lost money
on UBS Group AG mutual
funds stuffed with Puerto Rico
government bonds can’t sue as
a group, a federal judge said
Monday, a setback in their ef-
forts to collect from the Swiss
financial-services giant.
The ruling by Judge Sidney
H. Stein of the U.S. District
Court in New York means that
investors in closed-end mutual
funds managed by UBS Finan-
cial Services of Puerto Rico
Inc. must pursue their claims
individually through arbitra-
tion, a more difficult path to
recouping damages, rather
than proceeding as a single,
certified class.
Investors have claimed that
UBS brokers told them their
mutual funds were safe when
in fact their assets were heav-
ily concentrated in just a few
Puerto Rican municipal bonds
and the funds had used lever-
age to improve returns.
Judge Stein said the plain-
tiffs’ circumstances and their
CRACKER BARREL
Promotions Fail

!"#
To Draw Customers
* *
take less pay in exchange for
equity in the hopes of hitting
the jackpot once the company
takes off. The system has
minted generations of Silicon
Valley leaders by arming them
with enough wealth to fund
other startups, back their own
pet projects or bankroll politi-
cal campaigns.
The tech industry has come
under fire for gender inequal-
ity, allegations that encompass
pay disparity as well as work-
place discrimination, all of
which is exacerbated by an
overall dearth of women in the
field.
In recent years, large tech
companies have begun releas-
ing annual diversity data
showing that women typically
account for one-third of their
overall workforces, and much
less in technical and senior
roles.
The new data shows “the
problem is so much more sig-
nificant” than women being
on
us l,
al a
e
ci on
The plaintiffs claimed UBS said their mutual funds were safe when assets were concentrated in a few Puerto Rican municipal bonds.
er rs
decisions to buy and sell were
so dissimilar that their claims
needed to be adjudicated case
by case. Attorneys for the
m e
plaintiffs didn’t respond to a
request for comment.
m rp
BUSINESS WATCH
trance to Europe.
co Fo
Thor said that it would give
the Bad Waldsee, Germany-
based RV maker roughly €1.7 bil-
BUSINESS NEWS
Falling Short
Female employees at startups typically own far less equity
than their male peers.
Average equity stakes of women compared with every dollar
in equity owned by men
0 cents 25
Women
employees
Women
founders
Source: Carta
underrepresented in tech, said
Chloe Sladden, a former Twit-
ter Inc. executive and a
founder of #Angels, a group of
six female angel investors. The
gap in equity awards shows
that women have less “actual
firepower” to bring about
change, she said.
The study was prompted by
a February blog post from
#Angels in which its members
A decline in Puerto Rico
bond prices starting in 2013,
when the U.S. territory’s fiscal
crisis came into focus, drained
value from the mutual funds
and sparked hundreds of
Dollar Tree said its plans for
consolidating the centers are
“part of its continuing integra-
tion of Family Dollar’s organiza-
50 75 100
THE WALL STREET JOURNAL.
said they suspected there was
a disparity as the group began
investing and noticed the lack
of women on the capitaliza-
tion, or cap, tables that detail
a company’s ownership. Carta
subsequently offered to run
the numbers.
The limited research in this
area makes it difficult to as-
sess the reason for the dis-
crepancies, but Ms. Sladden
claims against UBS. Prices on
some securities have declined
further since Puerto Rico em-
barked on a court-supervised
restructuring of its $73 billion
debt load last year.
Wednesday, September 19, 2018 | B7
said her group believes the cording to statistics released
main driver is a lack of women by the Census Bureau last
in early key and technical September.
roles. They also hypothesize There has been far less
that some of the reasons are data, if any, on how women
rooted in bias, ranging from fare on startup capitalization
how women-operated busi- tables. According to Carta,
nesses are perceived to how women hold 20% of employee
women come across during equity despite accounting for
negotiations. 35% of equity-holding employ-
The analysis is based on ag- ees. In other words, women
gregated and anonymized data shareholders own about $2.2
from more than 6,000 U.S.- billion in equity value, com-
based companies on Carta’s pared with the $8.8 billion in
platform that employ about value held by the men on
180,000 workers. About 87% of Carta’s platform. That trans-
the nearly 16,000 founders in- lates to an average of $35,319
cluded in the study are male. in value per woman, compared
The companies on Carta, on with $74,998 per man, accord-
average, have 34 employees ing to a fair market value as-
and are a little under five sessment by Carta.
years old. While female founders
In general, the gender pay make up about 13% of found-
gap has narrowed slightly. ers, they own less than 6% of
Female-to-male earnings total equity held by founders,
measured 80.5%—or 81 cents putting their ownership value
for every dollar a man at about $1.8 billion compared
makes—up 0.9 percentage with the $29.8 billion in value
point from 79.6% in 2015, ac- held by male founders.
Rican bonds. Of those com-
plaints, $1.6 billion worth have
been resolved through settle-
ments, some of which were for
millions of dollars, according
to the regulatory filing.
Investors said UBS failed to
.
structure the mutual funds to
ly
preserve capital as advertised
and reaped millions of dollars
in fees by selling and trading
mutual-fund shares. UBS
largely controlled the market
for those shares, making them
illiquid and prone to outsize
price swings, according to in-
vestor complaints.
UBS has said investors re-
ceived excellent returns for
ALVIN BAEZ/REUTERS
years that often exceeded the
broader bond market.
UBS paid roughly $34 mil-
lion in 2015 to settle accusa-
tions of failing to supervise a
former broker who had cus-
tomers invest borrowed money
UBS said in its second-quar- into the bond funds. The U.S.
ter report that mutual-fund Securities and Exchange Com-
customers had claimed $2.6 mission separately sued the
billion in damages through ar- former broker, Jose Ramirez
bitration complaints arising Jr., in federal court. He was
from the downturn in Puerto fired by UBS in early 2014.
  
 
   
lion ($1.9 billion) in cash and 2.3 tion and support functions.”
Cracker Barrel Old Country million of Thor’s shares, worth Dollar Tree bought Family Dol-  

 
Store Inc., reported lower-than- $224.3 million, according to lar in 2015.
expected fiscal fourth-quarter Monday’s closing price. The com- The company said it expects  
    
sales Tuesday. pany also will assume about pretax expenses from the con-  
  

Chief Executive Officer San- €300 million in debt. solidation will be between about
dra Cochran attributed that to Thor, based in Elkhart, Ind., $40 million and $49 million. It  
 
 
the failure of menu and market- said it expects the deal to add expects to incur between $5 mil-  
  

ing promotions to attract cus- to its earnings in the first year lion and $8 million of that this
tomers. Same-store traffic fell before the effects of anticipated fiscal year, it said.  
! "#

3.5%, while comparable sales cost cuts, transaction-related ex- —Allison Prang  
    $
slipped 0.4%.
Cracker Barrel also missed
analysts top- and bottom-line
expectations. Overall sales rose
no
9% to $810.9 million from the
same period a year earlier, miss-
ing analysts’ estimates of
$824.26 million, according to a
Thomson Reuters poll. Adjusted
earnings per share of $2.55
missed Wall Street’s $2.69 con-
sensus. Shares fell 4.6% to
$143.80.
—Kimberly Chin
THOR INDUSTRIES
RV Maker Buys
Entry Into Europe
Thor Industries Inc. has
agreed to acquire privately held
Erwin Hymer Group SE in a
cash-and-stock deal valued at
about $2.2 billion, giving the U.S.
recreational vehicle maker an en-
$% !
&
n-
penses and accounting adjust-
ments from the purchase.
—Kimberly Chin
DOLLAR TREE
Support Centers
To Consolidate
Dollar Tree Inc. said Tuesday
that it is consolidating store
support centers into the com-
pany’s new headquarters in
Chesapeake, Va.
The support centers Dollar
Tree is consolidating are in
Chesapeake and Matthews, N.C.
The company said it expects
to finish the consolidation by
next fall. It is closing the Mat-
thews headquarters after the
consolidation, it said, but is
keeping the distribution center
there. About 700 employees
have been given offers to relo-
cate, Dollar Tree said.
TATA MOTORS
Production Cutback
Takes Toll on Bonds
Yields on Jaguar Land
Rover’s euro-denominated bonds
eased as the British car maker
said Monday it would put 1,000
workers at its Castle Bromwich
plant on a three-day week from
October until Christmas.
The Tata Motors’ subsidiary
is cutting production in the face
of falling sales due to Brexit and
low demand for diesel cars.
The move will reduce costs
for the unit, allowing it to bal-
ance supply to global demand
and easing pressure on margins.
Yields on 4.5% October 2025
euro-denominated bonds eased
to 4.605% from 4.634 earlier in
the day, according to Tradeweb.
—Lorena Ruibal
!
  !$

 

 
         
   
  

 
  

     
  
          

      
     
 
  ! "
     #
 $               
 
                
JOSHUA LOTT/REUTERS

  
  
   

U.S. RV maker Thor expects its deal for a German company to add to its earnings in the first year.
 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.

B8 | Wednesday, September 19, 2018 THE WALL STREET JOURNAL.

BUSINESS & FINANCE

Ferrari Soups Up Its Output and Lineup

Sergio Marchionne’s buyers, said Mr. Noci.
Shifting Gears Mr. Camillieri’s presentation
successor lays out After years of self-imposed at Ferrari’s factory complex in
plans for larger model limits, Ferrari’s annual output Maranello north of Bologna is
is forecast to continue its his first in-person briefing to
and special editions recent growth. investors and analysts since
being parachuted into the role
BY ERIC SYLVERS 10,000 vehicles in the summer with no experi-
ence of running a car company.
MARANELLO, Italy—Ferrari 8,000 Mr. Camillieri, who was a
NV plans to launch a series of Ferrari board member and
special-edition models and a 6,000 chairman of the company’s
larger car to rival sport-utility racing sponsor Philip Morris
vehicles as part of the Italian 4,000 International Inc. at the time
luxury-car maker’s drive to in- of his appointment as CEO,
crease volume and double 2,000 spooked investors on a confer-
profit by 2022. ence call shortly after taking
The initiatives are part of a 0 over by describing Mr. Mar-
five-year plan unveiled Tues- 2013 ’14 ’15 ’16 ’17 ’18* chionne’s target to double
FERARRI

day by new Chief Executive *Forecast gross operating profit by 2022

Louis Camillieri, who took the Source: the company as “aspirational.”
wheel of the storied company The special-edition Monza SP1 is inspired by the Ferrari 750 Monza race car of the 1950s. THE WALL STREET JOURNAL. On Tuesday, Mr. Camillieri
in July after the unexpected didn’t back away from that
death of Sergio Marchionne. will be called “purosangue,” the driver, and the two-seat details at next month’s Paris markets. characterization but did qual-
Ferrari under Mr. Marchio- which means thoroughbred in Monza SP2. Motor Show. They will cost “Concentrating their effort ify it. “Our objectives are am-
nne had already started to Italian. The new open-top cars more than $1.5 million, accord- on special edition vehicles and bitious but they are based on a
boost production beyond self- “It’s something you haven’t don’t have a traditional wind- ing to a person familiar with on expanding their range to meticulously constructed
imposed limits meant to pro- seen before so don’t give it ac- shield and will instead be out- the company’s plans. Ferrari this bigger vehicle is the right model pipeline, our enviable
tect the brand’s exclusivity. ronyms,” Mr. Camillieri said in fitted with what Ferrari is call- said it already has orders for move because moving into pricing power and appropriate
The former chief had also al- response to an analyst who ing a “virtual windshield” that the cars it will make. It didn’t other luxury areas for a brand investment levels to support
luded to the introduction of a pressed him to say if the new funnels air off the hood say when the next special-edi- so tightly linked to cars is a our key initiatives during the
larger, taller model similar to vehicle was an SUV or some- through a duct and up verti- tion model is due. big risk,” said Giuliano Noci, a plan period and beyond,” said
an SUV, prompting fans and thing closer to a sedan. cally in front of the driver, cre- Mr. Camillieri also said professor of strategy and Mr. Camillieri.
some analysts to warn it could Ferrari said it would pro- ating a barrier against the there was considerable value marketing at the School of Affirming the targets, fi-
harm the brand. duce no more than 500 of the wind. Included in the price of to be gained by expanding the Management at Milan’s Po- nance chief Antonio Picca Pic-
Mr. Camillieri, like his pre- first two cars in a series of the car—in addition to the 810 Ferrari brand beyond cars litecnico university. con said the company would
decessor, was careful not to special-editions based on some horsepower engine, the most though he declined to give de- The special edition cars “almost double” adjusted gross
call the larger Ferrari an SUV, of the brand’s best-known powerful ever in a Ferrari—is tails, only saying that it is a have particularly high profit operating profit to between
but with its planned introduc- models. The first two are mod- a driving jumpsuit made by “work in progress.” Since the margins while the new larger €1.8 billion ($2.1 billion) and
tion in 2022 it will compete ernized versions of the Ferrari high-end Italian designer Loro time of Ferrari’s initial public vehicle will appeal to current €2 billion in 2022, from €1 bil-
with SUVs from the likes of 750 Monza race car that dates Piana. offering in 2015, Marchionne Ferrari owners who want a ve- lion last year. Revenue is ex-
Lamborghini and Bentley. Mr. from the 1950s: the Monza Ferrari will present the cars had spoken of plans to expand hicle they can drive more often pected to rise to about €5 bil-

.
Camillieri said the new vehicle SP1, which has only a seat for to the public and give pricing the brand into other luxury and will also attract first-time lion, from €3.4 billion last year.

ly
New Highs and Lows | WSJ.com/newhighs Stock
52-Wk %
Sym Hi/Lo Chg Stock
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52-Wk %
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The following explanations apply to the New York Stock Exchange, NYSE Arca, NYSE
American and Nasdaq Stock Market stocks that hit a new 52-week intraday high or low
in the latest session. % CHG-Daily percentage change from the previous trading session.
on
Catasys
CeridianHCM CDAY
CATS

ChampionsOncology CSBR
ChefsWarehouse CHEF
14.29 6.3 DigitalAlly
44.97 0.6 Domtar
13.00 6.3 Dover
37.00 1.8 EasterlyAcqn
DGLY
UFS
DOV
EACQ
4.30 18.1 Fortive
54.50 -1.6 ForwardAir
89.63 0.3 FranklinElec
11.25 8.2 frontdoor
FTV
FWRD
FELE
FTDRV
87.86
68.84
51.45
37.60
0.3
0.5
1.1
0.3
InnovativeIndPfdA IIPRpA
IntlMoneyExpressWt IMXIW
InterXion
Invitae
INXN
NVTA
29.25 1.3 NexeoSolutions NXEO
1.88 1.2 NicholasFin
68.51 2.2 Nike
NICK
NKE
18.38 10.8 NorfolkSouthern NSC
11.55
12.50
85.35
186.91
14.8
0.4
2.4
4.1
Rollins
RosettaStone RST
SM Energy
ServiceCorp
ROL

SM
SCI
64.39
17.93
32.09
43.23
1.4
5.5
1.1
1.4
Tilray
TransEnterix
TLRY
TRXC
TriumphBancorp TBK
UbiquitiNetworks UBNT
155.10 28.9
6.25 7.1
44.38 0.5
99.50 1.3
ChesapeakeLodging CHSP 33.77 0.2 Ecopetrol EC 26.67 1.1 FutureFuel FF 18.97 -2.9 iRadimed IRMD 32.00 1.6 NorthwestNatGas NWN 70.33 -0.3 SherwinWilliams SHW 474.63 0.7 UnionPacific UNP 164.58 4.5
Tuesday, September 18, 2018
Gallagher AJG 75.27 -0.1 6.10 2.0 Novocure NVCR 49.80 5.8 Shire SHPG 178.33 1.0
us l,

52-Wk % 52-Wk % 52-Wk % ChesapeakeUtil CPK 90.90 0.7 EmergentBiosol EBS 66.54 1.4 IsraelChemicals ICL UnitedTech UTX 140.33 1.3
Garmin GRMN 69.21 0.9 OasmiaPharm OASM 3.17 17.3 SimplyGoodFoodsWt SMPLW 6.98 6.9
Stock Sym Hi/Lo Chg Stock Sym Hi/Lo Chg Stock Sym Hi/Lo Chg Chiasma CHMA 3.25 8.9 EmersonElec EMR 78.61 0.8 JerniganCapPfdB JCAPpB 25.07 -1.0 UniversalHealthB UHS 132.64 1.4
Genesee&Wyoming GWR 90.66 2.0 PaciraPharm PCRX 48.45 3.5 SimplyGoodFoods SMPL 18.48 2.2
CincinnatiFin CINF 78.05 0.9 Energen EGN 80.35 1.6 JohnBeanTech JBT 123.68 2.5 UnivInsurance UVE 46.50 1.5
AllianzGI PfdA NCZpA 25.02 0.1 BerkHathwy B BRK.B 218.50 0.9 GenomicHealth GHDX 67.74 4.0 PatriotNatBncp PNBK 23.50 5.6 Sony SNE 59.94 0.9
Highs ClearChannelOutdr CCO 5.55 0.9 Equifax EFX 138.69 1.6 KLX Energy KLXE 30.50 -1.9 VeriSign VRSN 164.19 0.9
al a

AllisonTransm ALSN 52.46 0.6 BisonCapAcqn BCAC 10.30 1.0 GibraltarInds ROCK 46.64 1.6 PetIQ PETQ 43.93 -0.7 SouthJerseyIndsUn SJIU 57.34 1.5
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Cleveland-Cliffs CLF 12.25 3.8 EquityCommnwlth EQC 32.55 -0.4 KosmosEnergy KOS 9.43 3.4 VikingTherap VKTX 24.00 87.3
AmericanFin AFIN 17.79 3.0 Blackstone BX 37.94 1.2 GordonPointeUn GPAQU 10.46 0.2 Pfizer PFE 43.68 1.2 StitchFix SFIX 52.44 -1.3
Aaron's AAN 53.00 2.1 Clorox CLX 152.91 -0.1 EquityLife ELS 97.30 -0.2 LigandPharm LGND 273.25 4.8 VikingTheraWt VKTXW 22.30 110.8
Ametek AME 81.54 0.9 BostonSci BSX 37.76 0.9 GrAeroportuario OMAB 56.88 4.2 PriorityIncmPfdA PRIFpA 25.50 2.0 Strats GSG GJS GJS 24.89 1.2
AcceleronPharma XLRN 55.25 4.0 Coca-Cola Euro CCE 45.95 ... ErieIndemnity A ERIE 129.85 ... Lowe's LOW 115.72 1.6 ViperEnergyPtrs VNOM 40.76 2.0
Amrep AXR 9.70 1.1 Bottomline EPAY 70.06 4.5 Harsco HSC 30.05 -0.5 Pro-Dex PDEX 12.70 6.4 Strats WlMrt GJO GJO 23.49 0.1
ci on

Accenture ACN 172.83 0.8 ColonyCredRlEst CLNC 22.70 0.9 EuronetWorldwide EEFT 102.95 0.9 MCBCHoldings MCFT 38.04 2.5 Progressive WasteMgt WM 92.85 0.4
Aon AON 152.99 0.5 BovieMedical BVX 7.46 2.5 Hasbro HAS 107.72 1.7 PGR 69.73 1.7 TKKSymphonyWt TKKSW 0.32 ...
Actuant ATU 30.20 0.8 AppliedIndlTechs AIT 80.50 1.1 CBIZ CBZ 24.38 2.5 ConocoPhillips COP 75.73 1.1 ExelaTech XELA 7.33 1.6 Mastercard MA 220.96 1.7 QuakerChemical KWR Winmark WINA 176.45 1.1
HawthornBcsh HWBK 24.80 -0.8 196.62 3.4 TargaResources TRGP 56.74 2.2
AeroVironment AVAV 121.32 2.6 AtmosEnergy ATO 95.22 -0.3 CNOOC CEO 189.57 1.8 Crocs CROX 22.07 0.8 ExlService EXLS 66.06 1.0 HemisphereMedia HMTV 14.20 ... MercurySystems MRCY 57.26 0.9 Qualcomm QCOM 76.50 2.0 TeledyneTech TDY 250.87 0.1 WW Ent WWE 90.16 2.1
Aetna AET 206.28 0.3 Balchem BCPC 117.15 1.4 CableOne CABO 899.55 1.8 DXC Tech DXC 93.45 0.1 F5Networks FFIV 195.32 0.5 Hudson HUD 23.18 1.3 MicroStrategy MSTR 151.23 1.9 RadNet RDNT 15.80 3.0 Tenable TENB 36.83 2.4 Xylem XYL 81.92 0.4
AlbanyIntl AIN 82.20 -0.6 Ball BLL 45.21 1.8 Cannae CNNE 21.81 2.0 Dave&Buster's PLAY 63.93 3.7 FirsthandTechVal SVVC 15.74 -0.1 IDACORP IDA 101.49 0.6 MinervaNeurosci NERV 11.35 4.7 RepublicSvcs RSG 75.82 0.4 Textron TXT 71.74 0.9 ZimmerBiomet ZBH 131.34 0.7
Allegion ALLE 90.49 1.7 BerkHathwy A BRK.A 327820 0.9 CaraTherap CARA 22.70 5.6 DelekLogistics DKL 34.35 -0.3 Flowserve FLS 56.08 1.6 IDEX IEX 156.22 1.3 MyersIndustries MYE 24.98 2.3 Roku ROKU 74.25 3.3 3PEA Intl TPNL 4.95 8.1 Continued on Page B11
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 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.

THE WALL STREET JOURNAL. Wednesday, September 19, 2018 | B9

BIGGEST 1,000 STOCKS

Net Net Net Net Net Net Net
How to Read the Stock Tables Footnotes: Stock Sym Close Chg Stock Sym Close Chg Stock Sym Close Chg Stock Sym Close Chg Stock Sym Close Chg Stock Sym Close Chg Stock Sym Close Chg
The following explanations apply to NYSE, s-New 52-week high.
NYSE Arca, NYSE American and Nasdaq Stock t-New 52-week low. CIT Group CIT 52.89 -0.37 CommerceBcshrs CBSH 68.45 0.20 s EmersonElec EMR 78.41 0.64 GeneralMills GIS 44.13 -3.64 Infosys INFY 10.14 -0.11 LibertyFormOne A FWONA 37.08 2.59 NRG Energy NRG 35.88 0.38
Market listed securities. Prices are composite dd-Indicates loss in the most recent CME Group CME 172.40 0.56 ConagraBrands CAG 37.75 -0.44 Enbridge ENB 34.53 0.25 GeneralMotors GM 35.10 0.08 Ingersoll-Rand IR 103.41 0.39 LibertyBraves A BATRA 25.85 0.31 NVR NVR 2672.41 51.43
quotations that include primary market trades four quarters. CMS Energy CMS 50.26 -0.04 ConchoRscs CXO 143.55 1.92 Encana ECA 12.48 0.58 Gentex GNTX 21.80 -0.70 Ingredion INGR 103.65 -0.25 LibertyBraves C BATRK 25.78 0.29 NXP Semi NXPI 91.68 1.53
as well as trades reported by Nasdaq BX FD-First day of trading.
(formerly Boston), Chicago Stock Exchange, h-Does not meet continued listing CNA Fin CNA 46.15 0.05 s ConocoPhillips COP 75.04 0.80 EncompassHealth EHC 79.87 0.18 GenuineParts GPC 101.31 0.63 Insulet PODD 104.61 2.06 LibertySirius A LSXMA 46.84 0.29 Nasdaq NDAQ 90.09 0.97
Cboe, NYSE National and Nasdaq ISE. standards CNH Indl CNHI 12.06 0.22 ConEd ED 80.08 -0.27 EnelAmericas ENIA 7.80 0.18 Gerdau GGB 4.05 0.25 IntegratedDevice IDTI 47.18 0.20 LibertySirius C LSXMK 46.93 0.32 NationalGrid NGG 52.91 -0.07
The list comprises the 1,000 largest lf-Late filing s CNOOC CEO 188.18 3.35 ConstBrands A STZ 213.52 1.19 EnelChile ENIC 4.87 0.01 Gildan GIL 29.99 -0.52 Intel INTC 46.10 0.68 NatlInstruments NATI 48.21 0.13
companies based on market capitalization. q-Temporary exemption from Nasdaq LibertySirius B LSXMB 47.10 -2.84
requirements. CRH CRH 32.33 0.23 ContinentalRscs CLR 62.17 2.15 s Energen EGN 79.36 1.28 GileadSciences GILD 73.67 0.89 InteractiveBrkrs IBKR 58.02 0.59 LibertyProperty LPT 43.29 -0.31 NatlOilwell NOV 44.55 0.44
Underlined quotations are those stocks with
large changes in volume compared with the t-NYSE bankruptcy CSX CSX 74.11 0.77 Cooper COO 264.76 5.10 EnergyTransferEq ETE 17.40 0.08 GSK GSK 39.63 0.42 ICE ICE 78.18 0.66 EliLilly LLY 106.88 1.17 NatlRetailProp NNN 45.20 -0.09
issue’s average trading volume. v-Trading halted on primary market. CVS Health CVS 78.61 0.51 Copart CPRT 64.17 0.44 EnergyTransfer ETP 22.30 0.25 GlobalPayments GPN 128.55 1.58 InterContinentl IHG 61.79 0.52 NektarTherap NKTR 58.33 0.02
vj-In bankruptcy or receivership or LincolnElectric LECO 95.27 0.41
Boldfaced quotations highlight those issues being reorganized under the CabotOil COG 21.71 0.14 Corning GLW 35.27 0.09 EnLinkMidPtrs ENLK 18.35 0.15 GoDaddy GDDY 82.29 0.89 IBM IBM 148.56 0.62 LincolnNational LNC 67.63 1.16 NetApp NTAP 85.31 1.87
whose price changed by 5% or more if their Bankruptcy Code, or securities CadenceDesign CDNS 45.22 -0.15 CoStar CSGP 425.00 1.50 Entergy ETR 83.93 -0.49 Goldcorp GG 10.62 0.08 IntlFlavors IFF 138.25 1.76 LivaNova LIVN 124.53 0.80 Netease NTES 199.01 0.64
previous closing price was $2 or higher. assumed by such companies. CaesarsEnt CZR 10.80 0.20 Costco COST 234.35 2.35 EnterpriseProd EPD 29.36 0.11 GoldmanSachs GS 228.89 IntlPaper IP 53.72 0.10 Netflix NFLX 367.65 17.30
1.00 LiveNationEnt LYV 53.67 0.20
CamdenProperty CPT 95.05 0.01 Coty COTY 12.52 0.21 s Equifax EFX 138.06 2.12 Graco GGG 48.04 0.10 Interpublic IPG 22.35 -0.19 LloydsBanking LYG 3.15 0.03 Neurocrine NBIX 120.26 2.90
Wall Street Journal stock tables reflect composite regular trading as of 4 p.m. and BAP 216.73 1.62 EQIX 445.21 -2.09 Grainger INTU 228.18 2.71 t NewOrientalEduc EDU 67.58 -1.18
CampbellSoup CPB 40.06 -0.90 Credicorp Equinix GWW 353.67 2.04 Intuit LockheedMartin LMT 343.22 3.88
changes in the closing prices from 4 p.m. the previous day.
CanadaGoose GOOS 59.10 1.56 CreditAcceptance CACC 437.82 -7.20 Equinor EQNR 26.62 0.21 Grifols GRFS 21.03 0.61 IntuitiveSurgical ISRG 564.82 6.17 Loews L 51.04 0.28 NewResidInvt NRZ 18.14 -0.04
Net Net CIBC CM 94.88 0.61 CreditSuisse CS 15.09 0.03 s EquityLife ELS 96.79 -0.24 GrubHub GRUB 143.60 3.32 InvitatHomes INVH 23.66 -0.05 LogitechIntl LOGI 46.82 0.10 NewellBrands NWL 21.52 -0.04
Tuesday, September 18, 2018
Net Stock Sym Close Chg Stock Sym Close Chg CanNtlRlwy CNI 87.46 -0.19 CrownCastle CCI 112.17 -0.53 EquityResdntl EQR 67.77 -0.63 GpoAeroportuar PAC 107.14 1.22 IonisPharma IONS 49.36 1.17 s Lowe's LOW 115.55 1.81 NewmontMin NEM 30.85 0.21
Stock Sym Close Chg CanNaturalRes CNQ 32.71 1.11 CrownHoldings CCK 47.87 1.70 s ErieIndemnity A ERIE 129.07 -0.06 GpoAeroportSur ASR 205.63 3.90 iQIYI IQ 26.33 -0.51 NewsCorp B NWS 12.90 0.15
AEP AEP 72.43 -0.37 BakerHughes BHGE 32.25 0.64 lululemon LULU 158.44 3.06
AmerExpress AXP 109.64 0.44 s Ball BLL 44.92 0.78 CanPacRlwy CP 206.89 1.23 Ctrip.com CTRP 37.45 0.31 EssexProp ESS 245.41 -0.84 GpoAvalAcc AVAL 7.67 -0.03 IronMountain IRM 35.25 -0.53 LyondellBasell LYB 102.10 -1.36 t NewsCorp A NWSA 12.42 0.15
A B C Canon CAJ 31.86 0.72 Cullen/Frost CFR 108.03 0.32 EsteeLauder EL 140.30 0.41 GrupoTelevisa TV 18.77 0.16 s IsraelChemicals ICL 6.07 0.12 NextEraEnergy NEE 173.44 -0.42
AmericanFin AFG 113.17 1.14 BancoBilbaoViz BBVA 6.44 0.01
ABB ABB 24.01 ... AmHomes4Rent AMH 22.70 -0.17 BancodeChile BCH 87.65 0.63 CanopyGrowth CGC 51.89 3.29 Cummins CMI 145.58 1.09 Etsy ETSY 51.63 1.53 Guidewire GWRE 104.62 -0.18 ItauUnibanco ITUB 10.41 -0.04 M N NielsenHoldings NLSN 27.43 0.21
ADT ADT 8.59 0.19 AIG AIG 53.95 0.65 BcoSantChile BSAC 31.59 0.22 CapitalOne COF 97.03 -0.07 CurtissWright CW 140.25 0.75 EverestRe RE 225.73 2.47 HCA Healthcare HCA 133.78 1.08 s Nike NKE 85.26 2.00
CardinalHealth CAH 53.60 1.00 CyrusOne CONE 68.56 0.34 Evergy EVRG 57.48 -0.22 HCP HCP 26.28 -0.46
J K L M&T Bank MTB 169.11 -0.61
NiSource NI 25.92 0.19
AES AES 13.75 0.11 AmerTowerREIT AMT 147.41 -0.34 BcoSantMex BSMX 7.58 0.02 MGM Resorts MGM 27.59 0.17
Aflac AFL 47.26 0.21 AmerWaterWorks AWK 89.38 -0.11 BancoSantander SAN 5.14 0.09 Carlisle CSL 127.69 0.13 EversourceEner ES 63.64 -0.13 HDFC Bank HDB 93.28 -1.21 t JD.com JD 25.75 0.02 NobleEnergy NBL 30.31 0.58
Carlyle CG 23.60 0.35
D E F Exelon EXC 44.20 -0.27 HD Supply HDS 42.21 0.40 JPMorganChase JPM 114.30 0.46
MPLX MPLX 35.63 -0.01
Nokia NOK 5.62 0.12
AGNC Invt AGNC 18.77 -0.11 Ameriprise AMP 146.01 1.93 BanColombia CIB 40.80 0.23 MSCI MSCI 178.22 0.28
ANGI Homesvcs ANGI 23.24 1.05 AmerisourceBrgn ABC 87.33 0.57 BankofAmerica BAC 30.21 -0.07 CarMax KMX 78.06 -1.79 DISH Network DISH 37.08 0.52 Expedia EXPE 130.68 1.70 HP HPQ 25.16 0.15 JackHenry JKHY 161.24 1.30 NomuraHoldings NMR 4.86 0.13
Macerich MAC 56.94 -0.01
Ansys ANSS 184.83 0.98 s Ametek AME 81.50 0.71 BankofMontreal BMO 82.75 0.80 Carnival CCL 65.67 0.85 DTE Energy DTE 112.51 0.17 ExpeditorsIntl EXPD 73.90 0.12 HSBC HSBC 43.29 -0.24 JacobsEngg JEC 76.16 0.19 Nordson NDSN 145.39 -0.02
Macy's M 35.53 0.37
ASML ASML 186.57 3.48 Amgen AMGN 202.34 1.53 BankNY Mellon BK 51.45 0.23 Carnival CUK 64.94 0.84 s DXC Tech DXC 92.85 0.11 ExpressScripts ESRX 94.94 -0.29 Halliburton HAL 39.16 0.45 JamesHardie JHX 15.25 -0.04 Nordstrom JWN 64.06 -0.04
MadisonSquGarden MSG 307.14 2.71
AT&T T 33.72 0.10 Amphenol APH 95.37 -0.82 BkNovaScotia BNS 59.03 0.66 Carvana CVNA 59.27 -1.00 Danaher DHR 106.76 0.79 ExtraSpaceSt EXR 87.92 -1.40 Hanesbrands HBI 18.09 0.19 JazzPharma JAZZ 161.93 0.92 s NorfolkSouthern NSC 186.71 7.42
MagellanMid MMP 68.86 0.35
AbbottLabs ABT 68.41 0.74 AnadarkoPetrol APC 64.75 0.78 t Barclays BCS 9.10 -0.06 Catalent CTLT 42.88 0.31 Darden DRI 118.90 0.92 ExxonMobil XOM 83.63 0.22 HarleyDavidson HOG 44.41 0.04 JefferiesFin JEF 23.07 -0.08 NorthernTrust NTRS 103.85 0.84
s F5Networks FFIV 194.61 0.96 Harris MagnaIntl MGA 53.61 0.04
AbbVie ABBV 92.61 -2.76 AnalogDevices ADI 91.86 0.55 BarrickGold ABX 10.48 0.13 Caterpillar CAT 149.07 2.85 DaVita DVA 70.71 0.35 HRS 168.03 1.58 JetBlue JBLU 19.74 0.10 NorthropGrum NOC 317.63 6.61
ManulifeFin MFC 17.84 0.17
Abiomed ABMD 376.56 7.66 Andeavor ANDV 155.77 0.18 BauschHealth BHC 23.81 1.26 Celanese CE 113.46 0.07 Deere DE 149.04 ... FMC FMC 86.06 -0.17 HartfordFinl HIG 50.10 0.39 J&J JNJ 140.54 0.58 NorwegCruise NCLH 56.92 1.09
Facebook FB 160.30 -0.28 s Hasbro MarathonOil MRO 21.50 0.63
s Accenture ACN 172.41 1.37 AndeavorLog ANDX 49.31 0.20 BaxterIntl BAX 77.24 0.20 Celgene CELG 87.61 0.41 DellTechs DVMT 96.38 -0.94 HAS 107.62 1.81 JohnsonControls JCI 37.11 -0.14 Novartis NVS 85.03 -0.10
FactSet FDS 232.97 0.94 Heico A MarathonPetrol MPC 83.97 0.15
ActivisionBliz ATVI 79.63 0.75 AB InBev BUD 90.16 0.36 BectonDicknsn BDX 259.75 2.52 Cemex CX 7.19 0.09 DeltaAir DAL 57.83 -0.13 HEI.A 75.80 0.50 JonesLang JLL 144.01 0.74 NovoNordisk NVO 47.43 -0.21
FairIsaac FICO 235.14 0.89 Heico Markel MKL 1218.38 15.33
AcuityBrands AYI 159.89 1.67 AnnalyCap NLY 10.28 0.03 BeiGene BGNE 160.75 0.75 CenovusEnergy CVE 8.96 0.21 DentsplySirona XRAY 38.19 0.09 HEI 92.60 0.53 JuniperNetworks JNPR 28.59 0.59 Nucor NUE 64.27 1.22
Fastenal FAST 58.08 0.37 Helm&Payne HP 65.87 MarketAxess MKTX 181.64 1.85
AdobeSystems ADBE 270.79 2.54 AnteroResources AR 19.32 0.52 Berkley WRB 78.99 0.04 Centene CNC 142.84 1.09 DeutscheBank DB 11.58 0.07 0.77 KAR Auction KAR 63.61 0.89 Nutanix NTNX 49.65 3.22
FederalRealty FRT 130.01 -0.56 HenrySchein HSIC 84.32 Marriott MAR 129.81 0.04
AdvanceAuto AAP 167.65 4.15 Anthem ANTM 270.97 1.34 s BerkHathwy A BRK.A 3274362861.00 CenterPointEner CNP 28.60 -0.18 DevonEnergy DVN 39.33 0.52 -0.07 KB Fin KB 45.20 0.11 Nutrien NTR 58.41 0.57
FedEx FDX 241.58-14.15 Herbalife Marsh&McLen MMC 83.16 -3.47
AdvMicroDevices AMD 31.93 -0.50 s Aon AON 152.88 0.73 s BerkHathwy B BRK.B 218.30 2.01 CenturyLink CTL 23.16 0.38 DexCom DXCM 139.31 1.38 HLF 54.76 -0.35 KKR KKR 27.67 0.05 NVIDIA NVDA 271.02 -2.91
s CeridianHCM CDAY 44.00 Ferrari RACE138.32 5.52 Hershey MartinMarietta MLM 195.33 2.24
Aegon AEG 6.09 0.03 Apache APA 46.26 0.48 BerryGlobal BERY 50.82 0.50 0.25 Diageo DEO 138.50 -0.25 HSY 103.44 -0.33 KLA Tencor KLAC 103.59 0.32
AerCap AER 57.27 0.20 ApartmtInv AIV 44.35 -0.12 BestBuy BBY 77.70 0.66 Cerner CERN 64.38 0.18 DiamondbkEner FANG 124.75 2.06 FiatChrysler FCAU 17.61 0.16 Hess HES 68.52 1.75 KT KT 14.52 0.32
MarvellTech MRVL 18.66 0.22 O P Q
FibriaCelulose FBR 18.28 -0.20 HewlettPackard HPE 16.55 Masco MAS 38.50 0.18
s Aetna AET 205.44 0.67 ApolloGlbMgmt APO 34.35 0.28 Bio-Techne TECH 197.35 0.50 CharlesRiverLabs CRL 129.94 0.75 DigitalRealty DLR 122.81 0.42 0.27 KSCitySouthern KSU 118.23 1.59 OGE Energy OGE 37.11 -0.20
FidNatlFin FNF 40.04 -0.15 Hill-Rom Masimo MASI 123.09 2.08
AffiliatedMgrs AMG 142.08 0.03 Apple AAPL 218.24 0.36 Bio-RadLab A BIO 298.55 2.59 CharterComms CHTR 328.79 9.32 DiscoverFinSvcs DFS 78.29 0.73 HRC 92.90 0.08 Kellogg K 73.36 -1.34 ONEOK OKE 69.14 1.17
FidNatlInfo FIS 109.76 0.33 Hilton s Mastercard MA 220.05 3.58
AgilentTechs A 68.93 -0.15 ApplMaterials AMAT 39.19 0.49 Biogen BIIB 336.89 2.49 CheckPoint CHKP 119.66 ... DiscoveryB DISCB 31.65 3.60 HLT 79.39 0.29 KeurigDrPepper KDP 23.55 0.01 OReillyAuto ORLY 340.48 3.82
Chemours CC 40.30 -0.02 FifthThirdBncp FITB 28.85 0.13 HollyFrontier HFC 69.52 MatchGroup MTCH 60.05 1.96
AgnicoEagle AEM 34.47 0.41 Aptargroup ATR 111.59 0.29 BioMarinPharm BMRN 99.56 1.41 DiscoveryA DISCA 31.58 -0.44 0.60 KeyCorp KEY 19.74 -0.12 OccidentalPetrol OXY 78.88 1.28
CheniereEnergy LNG 66.71 1.94 58.com WUBA 71.47 0.17 Hologic HOLX 40.50 0.97
MaximIntProducts MXIM 58.32 1.06
AirProducts APD 168.69 -0.06 Aptiv APTV 86.01 0.56 BlackKnight BKI 53.55 0.10 DiscoveryC DISCK 28.96 -0.34 KeysightTechs KEYS 65.20 1.06 Okta OKTA 69.87 0.36
CheniereEnerPtrs CQP 38.75 0.52 FirstAmerFin FAF 53.84 -0.16 HomeDepot HD 211.02 2.62
McCormick MKC 131.24 -1.43
AkamaiTech AKAM 74.33 0.05 AquaAmerica WTR 37.65 -0.17 BlackRock BLK 472.20 1.30 Disney DIS 109.53 0.17 KilroyRealty KRC 71.67 -0.25 OldDomFreight ODFL 162.85 0.72
CheniereEnHldgs CQH 31.67 0.92 FirstData FDC 25.91 0.14 HondaMotor HMC 29.69 0.71 McDonalds MCD 157.77 -0.37
AlaskaAir ALK 69.24 -0.04 Aramark ARMK 42.81 0.82 s Blackstone BX 37.53 0.43 DocuSign DOCU 53.03 0.85 KimberlyClark KMB 117.07 -0.02 OldRepublic ORI 22.61 0.13
Chevron CVX 118.13 0.62 FirstRepBank FRC 98.32 -0.23 Honeywell HON 166.14 0.39 McKesson MCK 133.08 1.30
Albemarle ALB 103.06 0.61 ArcelorMittal MT 30.44 0.79 bluebirdbio BLUE 140.00 2.80 DolbyLab DLB 68.90 -0.40 KimcoRealty KIM 16.98 0.01 OmegaHealthcare OHI 32.92 -0.17
ChinaEastrnAir CEA 29.91 -0.16 FirstEnergy FE 37.86 -0.07 HormelFoods HRL 40.58 -0.47 Medtronic MDT 96.88 0.85
Alcoa AA 43.12 0.29 ArchCapital ACGL 30.24 0.06 Boeing BA 363.58 7.62 DollarGeneral DG 109.15 1.90 KinderMorgan KMI 18.12 -0.05 Omnicom OMC 69.30 -0.46
ChinaLifeIns LFC 11.00 0.18 Fiserv FISV 80.28 0.20 DR Horton DHI 43.18 0.64 Knight-Swift KNX 36.59 0.96
MelcoResorts MLCO 21.31 0.45
AlexandriaRlEst ARE 126.60 -0.98 ArcherDaniels ADM 49.62 -0.16 BookingHldgs BKNG 1911.11 20.35 DollarTree DLTR 85.21 -0.29 ON Semi ON 19.00 -0.06
ChinaMobile CHL 48.69 0.14 71.92 -0.07 FiveBelow FIVE 130.25 0.97 HostHotels HST 21.49 0.09 KSS 79.60 0.34
MercadoLibre MELI 315.08 -7.18
AlexionPharm ALXN 120.82 3.01 Arconic ARNC 22.99 0.27 BoozAllen BAH 51.59 -0.37 DominionEner D Kohl's OpenText OTEX 38.21 0.05
BABA 156.65 -2.24 ChinaPetrol SNP 97.83 1.54 DPZ 281.81 7.21 FleetCorTech FLT 221.01 2.26 HuanengPower HNP 25.71 0.41 KoninklijkePhil PHG 45.50 0.09 Merck MRK 70.42 ...
Alibaba AristaNetworks ANET 267.16 2.08 BorgWarner BWA 42.98 -1.17 Domino's Oracle ORCL 49.03 -0.15
AlignTech ALGN 385.96 7.59 ArrowElec ARW 76.75 0.17 ChinaSoAirlines ZNH 30.44 0.41 Donaldson DCI 58.74 -0.04 Flex FLEX 13.02 0.04 Huazhu HTHT 27.07 -0.50 KoreaElcPwr KEP 13.17 -0.08 Methanex MEOH 76.75 0.35
BostonProps BXP 126.14 -0.87 Orange ORAN 15.95 0.07
Alkermes ALKS 39.03 0.43 AspenTech AZPN 113.90 -0.12 s BostonSci BSX 37.62 0.35 ChinaTelecom CHA 48.46 0.25 DouglasEmmett DEI 38.82 -0.12 FlirSystems FLIR 62.54 0.31 Hubbell HUBB 134.81 0.93 KraftHeinz KHC 57.10 -1.25 MetLife MET 46.81 0.62
Orix IX 82.34 1.68
Alleghany Y 639.55 10.61 Assurant AIZ 105.14 1.19 Braskem BAK 29.65 -0.15 ChinaUnicom CHU 11.99 0.07 s Dover DOV 88.79 0.26 s Flowserve FLS 56.04 0.88 HubSpot HUBS 152.60 -0.60 Kroger KR 29.29 0.45 MettlerToledo MTD 606.04 -4.27
OwensCorning OC 58.79 0.21
Fluor FLR 58.57 0.94 HudsonPacProp HPP 32.22 MichaelKors KORS 73.16 -0.20

.
s Allegion ALLE 90.37 1.48 AstraZeneca AZN 37.49 -0.07 BrightHorizons BFAM 115.87 0.76 Chipotle CMG 491.49 3.17 DowDuPont DWDP 68.03 -0.79 -0.23 L Brands LB 29.57 1.13 PBF Energy PBF 50.96 -1.14
Allergan AGN 186.07 1.78 Athene ATH 51.27 0.13 Bristol-Myers BMY 61.48 0.18 Chubb CB 138.64 0.30 Dropbox DBX 26.36 0.16 FomentoEconMex FMX 98.46 0.11 Humana HUM 335.99 1.95 LG Display LPL 8.81 0.19 MicroFocus MFGP 17.40 0.30
PG&E PCG 47.20 0.38

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AllianceData ADS 246.86 0.74 Atlassian TEAM 92.40 1.29 BritishAmTob BTI 47.33 -0.80 ChunghwaTel CHT 35.66 0.44 DukeEnergy DUK 81.92 -0.16 FordMotor F 9.58 0.03 JBHunt JBHT 123.39 0.94 LINE LN 43.15 1.95 MicrochipTech MCHP 80.39 -0.49
PNC Fin PNC 139.93 0.27
AlliantEnergy LNT 43.84 -0.15 s AtmosEnergy ATO 94.49 -0.28 Broadcom AVGO 239.73 6.65 Church&Dwight CHD 59.72 -0.08 DukeRealty DRE 28.71 -0.30 ForestCIty A FCE.A 25.11 -0.01 HuntingtonBcshs HBAN 15.49 -0.16 LKQ LKQ 32.29 0.25 MicronTech MU 45.33 1.75
POSCO PKX 66.88 1.39
s AllisonTransm ALSN 52.11 0.33 Autodesk ADSK 148.79 2.07 BroadridgeFinl BR 135.35 0.56 Cigna CI 200.07 2.23 Dunkin' DNKN 73.85 0.71 Fortinet FTNT 88.43 0.26 HuntingIngalls HII 258.00 0.51 L3 Tech LLL 217.61 0.82 Microsoft MSFT 113.21 1.07
PPG Ind PPG 113.27 0.28
Allstate ALL 101.15 0.82 Autohome ATHM 76.42 0.42 BrookfieldMgt BAM 43.01 0.42 CimarexEnergy XEC 90.43 -0.75 ENI E 37.88 0.24 Fortis FTS 32.89 0.04 Huntsman HUN 28.35 ... LabCpAm LH 171.32 0.01 MidAmApt MAA 103.00 -0.12
PPL PPL 30.19 -0.24
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AlnylamPharm ALNY 93.75 0.40
Alphabet A GOOGL 1167.11 7.28
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AZO 732.76-14.76
BrookfieldInfr BIP 39.51 -0.14
Brown&Brown BRO 30.08 -0.55
Brown-Forman B BF.B 48.64 -0.46
ons CincinnatiFin CINF 77.98
Cintas CTAS 214.88
CiscoSystems CSCO 47.46
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EPAM Systems EPAM 140.26
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Franco-Nevada FNV 63.87 0.44 ICICI Bank IBN 8.78

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LamarAdv LAMR 77.95
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Altaba AABA 64.98 -0.92 Avangrid AGR 49.90 0.14 BuckeyePtrs BPL 36.35 -0.24 CitizensFin CFG 39.81 -0.08 E*TRADE ETFC 53.76 0.45 FreeportMcM FCX 14.01 0.29 IHSMarkit INFO 55.11 0.67 Lazard LAZ 47.65 0.20 MohawkInds MHK 185.27 -1.64 PackagingCpAm PKG 116.45 1.09
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Ambev ABEV 4.56 0.11 BHPBilliton BHP 46.19 0.96 CBS A CBS.A 55.93 -0.65 Coca-Cola Femsa KOF 59.95 0.30 EatonVance EV 52.61 0.26 s Gallagher AJG 75.03 -0.09 IcahnEnterprises IEP 66.20 -1.23 Lennar A LEN 51.81 0.65 MonsterBev MNST 59.39 -0.33 ParkerHannifin PH 188.89 1.44
Amdocs DOX 66.21 0.48 BHPBilliton BBL 41.16 1.02 CBS B CBS 55.67 -0.61 Cognex CGNX 55.91 0.54 eBay EBAY 34.12 -0.08 Gaming&Leisure GLPI 34.79 -0.24 Icon ICLR 146.65 1.38 LennoxIntl LII 223.49 -0.47 Moody's MCO 177.85 0.94 ParsleyEnergy PE 27.97 0.22
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 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.

B10 | Wednesday, September 19, 2018 THE WALL STREET JOURNAL.

BIGGEST 1,000 STOCKS

Biggest 1,000 Stocks | WSJ.com/stocks Stock
Net
Sym Close Chg Stock
Net
Sym Close Chg Stock
Net
Sym Close Chg Stock
Net
Sym Close Chg Stock
Net
Sym Close Chg Stock
Net
Sym Close Chg Stock
Net
Sym Close Chg
Continued From Page B9 Net Net RioTinto RIO 48.34 0.80 SLGreenRealty SLG 101.02 -0.55 ShinhanFin SHG 37.62 -0.42 Torchmark TMK 85.97 0.20 UnumGroup UNM 38.49 2.06 WellCareHealth WCG 306.17 5.36
Net Stock Sym Close Chg Stock Sym Close Chg
RobertHalf RHI 72.07 0.81 SS&C Tech SSNC 56.01 0.42 s Shire SHPG 178.15 1.84 T U V Toro TTC 62.48 0.09 VEREIT VER 7.55 -0.06 WellsFargo WFC 54.50 0.19
Stock Sym Close Chg PolarisIndustries PII 109.07 0.15 Rockwell ROK 194.07 2.62 SVB Fin SIVB 316.72 -1.85 Shopify SHOP 162.28 8.65 TAL Education TAL 25.04 0.05 TorontoDomBk TD 61.38 0.64 VF VFC 92.34 1.19 Welltower WELL 66.44 -0.37
PembinaPipeline PBA 33.53 0.49 Pool POOL 174.69 1.89 R S RockwellCollins COL 140.87 1.27 Sabre SABR 25.95 0.08 SignatureBank SBNY 117.88 -1.38 TD Ameritrade AMTD 55.41 0.23 Total TOT 63.10 0.72 VICI Prop VICI 21.60 0.08 WestPharmSvcs WST 119.73 0.74
Pentair PNR 45.31 0.95 PostHoldings POST 98.84 -1.31 t RELX RELX 20.23 -0.40 RogersComm B RCI 52.67 0.29 SageTherap SAGE 146.96 1.83 SimonProperty SPG 181.42 -2.04 TE Connectivity TEL 89.76 -2.12 TotalSystem TSS 97.89 0.70 Visa V 147.63 1.45 WestAllianceBcp WAL 57.04 -0.81
People'sUtdFin PBCT 17.58 -0.19 Praxair PX 158.17 0.15
RPM RPM 67.30 0.30 s Roku ROKU 72.07 2.32 Salesforce.com CRM 156.00 1.08 SiriusXM SIRI 7.04 -0.02 Telus TU 37.22 0.07 ToyotaMotor TM 125.03 2.55 VailResorts MTN 292.35 2.48 WesternDigital WDC 58.10 0.92
PepsiCo PEP 113.98 -1.42 PrincipalFin PFG 57.72 0.77 s Rollins ROL 64.16 0.90 Sanofi SNY 43.96 0.21 Skyworks SWKS 86.81 0.59 TIM Part TSU 14.21 -0.23 TractorSupply TSCO 88.64 0.95 Vale VALE 13.81 0.45 WesternGasEquity WGP 33.63 0.31
RalphLauren RL 132.22 0.67
PerkinElmer PKI 94.96 0.38 Procter&Gamble PG 84.00 -0.25 RoperTech ROP 311.51 0.11 SantanderCons SC 21.23 0.02 SmithAO AOS 59.32 -0.11 TJX TJX 109.07 1.11 TradeDesk TTD 144.73 2.08 ValeroEnergy VLO 115.33 -0.13 WesternGasPtrs WES 45.51 -0.75
RaymondJames RJF 92.01 0.70
Perrigo PRGO 72.99 0.42 s Progressive PGR 69.68 1.15 RossStores ROST 96.94 0.72 SareptaTherap SRPT 153.58 1.23 Smith&Nephew SNN 37.52 0.08 T-MobileUS TMUS 68.49 1.07 TransCanada TRP 42.11 -0.27 VarianMed VAR 111.39 1.34 WesternUnion WU 18.66 0.14
Raytheon RTN 207.90 2.89
PetroChina PTR 77.77 1.64 Prologis PLD 66.73 -0.79 RoyalBkCanada RY 80.09 0.69 Sasol SSL 37.11 -0.86 Smucker SJM 110.47 -1.18 TRowePrice TROW 109.29 0.33 TransDigm TDG 372.82 4.83 Vedanta VEDL 12.85 -0.17 WestlakeChem WLK 83.90 -1.89
RealtyIncome O 57.51 -0.66
PetroleoBrasil PBR 11.22 0.30 PrudentialFin PRU 100.21 1.22 RoyalBkScotland RBS 6.69 0.04 Schlumberger SLB 60.99 0.02 Snap SNAP 9.13 -0.05 TableauSftwr DATA 113.74 2.88 TransUnion TRU 76.25 1.41 VeevaSystems VEEV 105.20 0.72 WestpacBanking WBK 20.10 0.17
RedHat RHT 142.71 -1.66
PetroleoBrasilA PBR.A 9.75 0.32 Prudential PUK 43.92 -0.24 RoyalCaribbean RCL 131.00 2.26 SchwabC SCHW 50.62 0.30 SnapOn SNA 187.25 0.53 TaiwanSemi TSM 43.56 -0.20 Travelers TRV 131.37 1.48 Ventas VTR 57.59 -0.79 WestRock WRK 56.16 0.21
s Pfizer RegencyCtrs REG 65.35 -0.14
PFE 43.51 0.50 PublicServiceEnt PEG 53.09 -0.45 RoyalDutchA RDS.A 66.02 1.24 Seagate STX 47.98 0.67 SOQUIMICH SQM 46.70 -0.35 TakeTwoSoftware TTWO 132.72 1.24 Trimble TRMB 44.10 0.54 s VeriSign VRSN 162.93 1.52 Weyerhaeuser WY 33.96 -0.01
PhilipMorris PM 80.33 RegenPharm REGN 388.33 1.84
0.03 PublicStorage PSA 205.44 -2.78 RoyalDutchB RDS.B 68.16 1.33 SealedAir SEE 42.15 0.16 s Sony SNE 59.83 0.54 TallgrassEnergy TGE 23.39 0.06 TripAdvisor TRIP 50.65 1.38 VeriskAnalytics VRSK 122.20 1.65 WheatonPrecMet WPM 16.53 0.23
Phillips66 PSX 113.30 0.49 PulteGroup PHM 26.94 0.29 RegionsFin RF 18.91 -0.07 Ryanair RYAAY 97.25 0.65 SeattleGenetics SGEN 77.71 1.55 Southern SO 44.79 0.40 Tapestry TPR 50.82 0.31 21stCenturyFoxA FOXA 44.54 -0.17 Verizon VZ 54.39 -0.31 t Whirlpool WHR 122.10 -0.97
Pinduoduo PDD 22.64 -1.72 PureStorage PSTG 27.92 0.26 ReinsGrp RGA 143.95 0.58 SAP SAP 120.28 0.49 SempraEnergy SRE 117.27 -1.60 SoCopper SCCO 41.81 0.71 s TargaResources TRGP 55.85 1.20 21stCenturyFoxB FOX 44.16 -0.18 VertxPharm VRTX 177.12 1.32 Williams WMB 28.09 -0.15
PinnacleFoods PF 67.19 -0.35 Qiagen QGEN 38.12 0.70 RelianceSteel RS 86.23 1.03 S&P Global SPGI 213.55 2.20 s ServiceCorp SCI 43.11 0.60 SouthwestAir LUV 63.05 -0.05 Target TGT 87.68 0.40 Twilio TWLO 85.38 0.97 Viacom B VIAB 30.21 0.15 WillisTowers WLTW 146.09 -0.27
PinnacleWest PNW 80.82 -0.04 Qorvo QRVO 75.04 1.07 s RepublicSvcs RSG 75.45 0.33 SBA Comm SBAC 160.80 1.22 ServiceMaster SERV 59.28 -0.43 SpectraEnerPtrs SEP 38.19 0.29 Twitter TWTR 29.22 0.36 Viacom A VIA 33.70 ... Wipro WIT 5.32 0.06
TataMotors TTM 17.51 -0.16
PioneerNatRscs PXD 173.79 2.68 s Qualcomm QCOM 74.72 1.48 ResMed RMD 113.43 0.67 SEI Investments SEIC 62.69 0.22 ServiceNow NOW 191.88 -0.94 SpiritAeroSys SPR 90.34 2.12 TylerTech TYL 242.73 2.56 VistraEnergy VST 23.27 0.24 WooriBank WF 43.41 -0.18
TechnipFMC FTI 30.90 1.00
PlainsAllAmPipe PAA 25.03 -0.11 QuestDiag DGX 107.22 -0.41 RestaurantBrands QSR 59.25 1.26 SINOPEC SHI 56.47 0.64 ShawComm B SJR 19.76 0.14 Splunk SPLK 116.31 -3.18 TysonFoods TSN 62.37 -0.69 VMware VMW 153.40 -3.61 Workday WDAY 143.68 -1.05
TeckRscsB TECK 24.36 0.74
PlainsGP PAGP 24.48 -0.02 QurateRetailA QRTEA 22.10 0.18 RingCentral RNG 93.50 1.80 SK Telecom SKM 27.30 -0.15 s SherwinWilliams SHW 472.98 3.51 Spotify SPOT 175.52 0.42 UBS Group UBS 15.71 0.05 Vodafone VOD 22.55 0.19 s WW Ent WWE 89.57 1.82
TelecomArgentina TEO 17.50 0.08
Sprint S 6.42 0.09 TelecomItalia A TI.A 5.99 0.23 UDR UDR 40.32 -0.21 VornadoRealty VNO 74.72 -0.53 Worldpay WP 98.49 0.66
Square SQ 87.99 1.13 TelecomItalia TI 6.61 0.18 UGI UGI 55.00 -0.13 VoyaFinancial VOYA 49.56 0.97 WynnResorts WYNN 132.97 0.52
Mutual Funds Data provided by
Fund
Net YTD
NAV Chg %Ret Fund
Net YTD
NAV Chg %Ret
StanleyBlackDck SWK 150.76 1.57 s TeledyneTech TDY 247.77 0.13 US Foods USFD 31.68
USG USG 43.29
-0.01 VulcanMatls VMC 112.87 1.91 XPO Logistics XPO 113.51
XcelEnergy XEL 48.12
1.54
-0.27
Starbucks SBUX 55.07 0.50 Teleflex TFX 268.94 1.80 0.07
PIMCO Funds Instl TotStAdml 73.06 +0.39 10.4 StarsGroup TSG 24.45 -0.35 Ericsson ERIC 8.70 0.15 s UbiquitiNetworks UBNT 98.73 1.30
W X Y Z Xerox XRX 28.02 -0.06
Top 250 mutual-funds listings for Nasdaq-published share classes by net assets. IncomeFd 11.85 -0.01 -0.6 TxMIn r 13.85 +0.12 -2.3 StarwoodProp STWD 22.02 -0.23 t TelefonicaBras VIV 9.42 0.10 UltaBeauty ULTA 282.87 1.42 WABCO WBC114.88 -0.51 Xilinx XLNX 77.57 0.85
e-Ex-distribution. f-Previous day’s quotation. g-Footnotes x and s apply. j-Footnotes e Price Funds ValAdml 43.67 +0.17 6.7 s Xylem
StateStreet STT 85.62 -0.26 Telefonica TEF 7.84 0.10 UltSoftware ULTI 320.88 0.47 WEC Energy WEC 68.34 -0.28 XYL 81.87 0.33
and s apply. k-Recalculated by Lipper, using updated data. p-Distribution costs apply, BlChip 112.88 +0.92 17.2 WdsrllAdml 70.71 +0.37 6.4
SteelDynamics STLD 46.91 -0.30 TelekmIndonesia TLK 24.13 0.81 UnderArmour A UAA 18.96 -0.15 WEX WEX 195.52 3.20 YPF YPF 15.87 0.89
12b-1. r-Redemption charge may apply. s-Stock split or dividend. t-Footnotes p and r EqInc 34.45 +0.15 4.3 WellsIAdml 64.62 ... 0.4
apply. v-Footnotes x and e apply. x-Ex-dividend. z-Footnote x, e and s apply. NA-Not EqIndex 78.23 +0.42 10.0 WelltnAdml 74.15 +0.18 3.5 Steris STE 114.55 1.45 Tenaris TS 32.97 0.76 UnderArmour C UA 17.46 -0.21 W.P.Carey WPC 65.48 -0.08 Yandex YNDX 31.68 0.59
available due to incomplete price, performance or cost data. NE-Not released by Lipper; Growth 71.45 +0.52 14.0 WndsrAdml 81.10 +0.53 3.5 STMicroelec STM 18.17 0.19 Teradyne TER 37.48 0.26 Unilever UN 56.26 -0.07 WPP WPP 74.55 -0.48 YumBrands YUM 88.29 0.60
data under review. NN-Fund not tracked. NS-Fund didn’t exist at start of period. HelSci 82.55 +0.73 17.3 VANGUARD FDS Stryker SYK 174.10 4.22 Tesla TSLA 284.96 -9.88 Unilever UL 55.77 -0.16 WPX Energy WPX 18.39 0.62 YumChina YUMC 33.67 0.36
InstlCapG 43.54 +0.35 18.0 DivdGro 28.61 +0.11 9.8 SumitomoMits SMFG 8.08 0.17 TevaPharm TEVA 24.46 1.03 s UnionPacific UNP 163.70 6.99 Wabtec WAB 105.38 0.28 ZTO Express ZTO 17.18 0.04
Tuesday, September 18, 2018 IntlStk 18.21 +0.11 -2.5 HlthCare r 224.43 +1.78 12.0 SunComms SUI 101.90 -1.21 TexasInstruments TXN 104.91 1.21 UnitedContinental UAL 90.11 -0.05 WalgreensBoots WBA 70.88 0.43 ZayoGroup ZAYO 35.39 0.22
Net YTD Net YTD Net YTD IntlValEq 14.28 +0.14 -5.6 INSTTRF2020 23.01 +0.06 2.1 SunLifeFinancial SLF 39.52 UnitedMicro UMC 2.47 ZebraTech ZBRA 176.26
0.47 TexasPacLand TPL 832.19 2.98 -0.03 Walmart WMT 95.43 0.61 0.61
Fund NAV Chg %Ret Fund NAV Chg %Ret Fund NAV Chg %Ret MCapVal 31.75 +0.11 4.4 INSTTRF2025 23.45 +0.08 2.6
SuncorEnergy SU 39.55 1.37 s Textron TXT 71.56 0.65 UPS B UPS 118.24 -0.85 WasteConnections WCN 80.20 0.76 Zendesk ZEN 68.51 0.82
American Century Inv Intl Stk 42.74 +0.09 -7.7 FrankTemp/Frank Adv MidCap 98.64 +0.66 13.4 INSTTRF2030 23.80 +0.09 2.9
N Inc 9.12 -0.03 -1.8 INSTTRF2035 24.15 +0.10 3.3 SunTrustBanks STI 68.51 0.19 ThermoFisherSci TMO 239.10 0.64 UnitedRentals URI 167.05 2.11 s WasteMgt WM 92.51 0.40 Zillow C Z 44.64 0.39
Ultra 51.42 +0.41 18.4 Stock 215.01 +1.08 7.5 IncomeAdv 2.31 +0.01 1.9
NHoriz 65.95 +0.52 25.5 INSTTRF2040 24.50 +0.12 3.7 Symantec SYMC 20.65 0.85 ThomsonReuters TRI 45.62 0.11 US Bancorp USB 54.15 0.02 Waters WAT 195.73 0.64 Zillow A ZG 44.22 0.37
American Funds Cl A DoubleLine Funds FrankTemp/Franklin A
OverS SF r 11.07 +0.08 -2.1 INSTTRF2045 24.74 +0.14 3.9 SynchronyFin SYF 32.98 0.48 3M MMM 211.53 2.00 s UnitedTech UTX 139.58 1.82 Watsco WSO 182.79 0.20 s ZimmerBiomet ZBH 130.45 0.90
AmcpA p 34.77 +0.30 13.2 CoreFxdIncmI NA ... NA RisDv A p 65.91 +0.36 8.3
AMutlA p 42.82 +0.16 6.4 TotRetBdI NA ... NA FrankTemp/Franklin C R2020 23.07 +0.06 2.4 INSTTRF2050 24.76 +0.13 3.9 Synopsys SNPS 99.60 -0.47 Tiffany TIF 125.12 -0.76 UnitedHealth UNH 263.29 -0.58 Wayfair W 143.26 1.03 ZionsBancorp ZION 51.51 -0.20
BalA p 27.88 +0.08 4.0 Edgewood Growth Instituti Income C t 2.36 +0.01 1.3 R2025 18.07 +0.05 2.7 IntlVal 38.34 +0.25 -3.9 Sysco SYY 73.05 -0.44 s Tilray TLRY 154.98 34.79 s UniversalHealthB UHS 127.77 1.74 Weibo WB 72.05 -0.36 Zoetis ZTS 89.18 0.88
BondA p 12.46 -0.04 -1.8 EdgewoodGrInst 35.73 +0.32 20.9 FrankTemp/Temp A R2030 26.73 +0.09 3.1 LifeCon 20.03 +0.03 1.3
CapIBA p 60.17 +0.08 -1.8 Fidelity Growth A p 27.03 +0.11 -0.8 R2035 19.62 +0.08 3.4 LifeGro 34.49 +0.16 3.4
R2040 28.25 +0.13 3.7 LifeMod 27.52 +0.09 2.4
CapWGrA 50.67 +0.39 0.6
EupacA p 52.48 +0.37 -3.9
500IdxInst 101.90 +0.54 10.1
500IdxInstPrem101.90 +0.55 10.1
FrankTemp/Temp Adv
GlBondAdv p 11.26 +0.04 -1.7 Value 38.08 +0.13 2.0
PRIMECAP Odyssey Fds
PrmcpCor
SelValu r
29.65 +0.13
30.20 +0.22
10.2
-3.4
Bonds | WSJ.com/bonds
FdInvA p 64.88 +0.45 6.0 500IdxPrem 101.90 +0.55 10.1 Harbor Funds
AggGrowth r 51.64 +0.35 16.5
GwthA p
HI TrA p
56.00 +0.50 13.0
10.27 ... 3.2
ExtMktIdxPrem r 69.10 +0.30 11.5
IntlIdxPrem r 42.22 +0.33 -2.1
CapApInst 80.67 +0.63
IntlInst r 63.93 +0.54
16.2
-5.3 Growth r 43.08 +0.32 15.7
STAR 27.56 +0.06
TgtRe2015 15.56 +0.02
3.6
1.5 Tracking Bond Benchmarks
Stock r 34.53 +0.15 8.2 TgtRe2020 32.04 +0.08 2.1
ICAA p 41.70 +0.20 5.8 SAIUSLgCpIndxFd 15.58 +0.08 10.2 Harding Loevner
Principal Investors TgtRe2025 18.96 +0.06 2.5
Return on investment and spreads over Treasurys and/or yields paid to investors compared with 52-week
IncoA p 23.18 +0.04 1.3 SerLTTreBdIdx 8.25 -0.08 -5.7 IntlEq NA ... NA
N PerA p 46.41 +0.31 7.5 TMktIdxF r 83.99 +0.43 10.4 Invesco Funds A DivIntlInst 13.40 +0.09 -3.6 TgtRe2030 34.61 +0.13 2.9 highs and lows for different types of bonds
NEcoA p 48.76 +0.52 9.3 TMktIdxPrem 83.98 +0.43 10.4 EqIncA 11.06 +0.05 2.0 Schwab Funds TgtRe2035 21.37 +0.09 3.3 Total Total
NwWrldA 63.19 +0.40 -5.6 USBdIdxInstPrem 11.16 -0.03 -1.8 John Hancock Instl S&P Sel 45.36 +0.24 10.1 TgtRe2040 37.10 +0.20 3.7 return YTD total Yield (%) return YTD total Yield (%)
SmCpA p 60.09 +0.40 7.7 Fidelity Advisor I DispValMCI 24.14 +0.08 3.6 TIAA/CREF Funds TgtRe2045 23.38 +0.13 3.9 close return (%) Index Latest Low High close return (%) Index Latest Low High
TxExA p 12.70 -0.02 -0.6 NwInsghtI 35.56 +0.25 13.4 JPMorgan Funds BdIdxInst 10.42 -0.03 -1.9 TgtRe2050 37.62 +0.21 3.9
EqIdxInst 21.68 +0.11 10.3 TgtRetInc 13.57 +0.01 1.0 Broad Market Bloomberg Barclays Mortgage-Backed Bloomberg Barclays
WshA p 46.84 +0.24 7.3 Fidelity Freedom MdCpVal L 42.12 +0.07 4.6
IntlEqIdxInst 19.79 +0.17 -1.9 TotIntBdIxInv 10.91 -0.01 1.2
Baird Funds FF2020 16.42 +0.03 1.6 JPMorgan R Class
1910.25 -1.8 U.S. Aggregate 3.450 2.500 3.450 1963.88 -1.2 Mortgage-Backed 3.560 2.760 3.580

.
AggBdInst 10.48 -0.03 -1.8 FF2025 14.34 +0.03 1.9 CoreBond 11.21 -0.03 -1.4 VANGUARD ADMIRAL WellsI 26.67 ... 0.4
CorBdInst 10.83 -0.03 -1.6 FF2030 18.03 +0.06 2.5 CorePlusBd 8.01 -0.02 -1.3 500Adml 269.31 +1.45 10.1 Welltn 42.93 +0.10 3.5 U.S. Corporate Indexes Bloomberg Barclays 1933.06 -1.1 Ginnie Mae (GNMA) 3.510 2.710 3.540

ly
BlackRock Funds A Freedom2020 K 16.41 +0.04 1.6 Lord Abbett F BalAdml 36.26 +0.08 5.5 WndsrII 39.85 +0.21 6.3
GlblAlloc p 19.55 +0.09 -0.4 Freedom2025 K 14.32 +0.03 1.9 ShtDurIncm 4.16 ... 0.7 CAITAdml 11.53 -0.02 -0.2 VANGUARD INDEX FDS 2724.68 -2.7 U.S. Corporate 4.080 3.110 4.080 1150.92 -1.3 Fannie mae (FNMA) 3.580 2.770 3.590
BlackRock Funds III Freedom2030 K 18.02 +0.07 2.6 Metropolitan West CapOpAdml r173.93 +0.70 13.2 500 269.26 +1.45 10.0
EMAdmr 33.83 +0.19-10.7 SmValAdml 60.75 +0.14 7.4 2594.91 -1.0 Intermediate 3.790 2.640 3.790 1772.84 -1.3 Freddie Mac (FHLMC) 3.590 2.780 3.610
iShS&P500IdxK345.30 ... 9.5 Freedom2035 K 15.30 +0.06 3.3 TotRetBd 10.31 -0.03 -1.6
BlackRock Funds Inst Freedom2040 K 10.76 +0.05 3.4 EqIncAdml 80.59 +0.31 4.7 TotBd2 10.32 -0.03 -1.9 520.04 -0.4 Muni Master 2.657 1.824 2.657
TotRetBdI 10.31 -0.02 -1.5 3693.38 -6.2 Long term 4.710 3.990 4.750
EqtyDivd
GlblAlloc
24.00 +0.11 6.3
19.67 +0.08 -0.2
StratIncOpptyIns 9.72
Bridge Builder Trust
... -0.1
Fidelity Invest
Balanc
BluCh
25.20 +0.08 7.0
100.14 +0.73 18.4
TRBdPlan
MFS Funds Class I
ValueI
9.70 -0.02

41.45 +0.17
on
-1.4

2.6
ExplrAdml 107.29 +0.67 21.4
ExtndAdml 93.92 +0.41 11.5
GNMAAdml 10.14 -0.02 -1.0
GrwthAdml 82.11 +0.57 14.1
TotIntl
TotSt
17.27 +0.14
73.02 +0.39
VANGUARD INSTL FDS
BalInst 36.26 +0.07
-4.1
10.3

5.5
558.47
704.01
-1.8
-2.5
Double-A-rated
Triple-B-rated
3.520 2.570 3.520
4.370 3.400 4.370
362.55
408.75
-0.8
-0.8
7-12 year
12-22 year
2.691 1.841 2.702
3.018 2.298 3.018
Contra 13.96 +0.11 15.8 MFS Funds Instl
CoreBond 9.80 -0.03 -1.6 ContraK 13.96 +0.11 15.8 HlthCareAdml r 94.67 +0.75 12.0 DevMktsIndInst 13.87 +0.13 -2.3
IntlEq 25.32 +0.03 -0.5 High Yield Bonds ICE Data Services 395.09 -1.3 22-plus year 3.463 2.716 3.463
us l,

CorePlusBond 9.74 -0.03 -1.4 CpInc r 10.09 +0.02 2.2 Nuveen Cl I

HYCorAdml r 5.78 ... 1.5 DevMktsInxInst 21.69 +0.21 -2.3
Del Invest Instl DivIntl 39.26 +0.20 -1.9 InfProAd 25.11 -0.06 -1.0 ExtndInst 93.91 +0.41 11.5 427.61 2.4 High Yield Constrained 6.228 5.373 6.619 Global Government J.P. Morgan†
HYMunBd 17.13 -0.04 1.9
Value 23.26 +0.09 9.2 GroCo 21.24 +0.17 18.9 IntlGrAdml 96.75 +0.16 1.2 GrwthInst 82.12 +0.57 14.1
Oakmark Funds Invest -0.8
Dimensional Fds ITBondAdml 10.88 -0.04 -2.3 InPrSeIn 10.23 -0.02 -1.0 443.75 5.6 Triple-C-rated 9.709 9.597 11.091 539.47 Global Government 1.730 1.380 1.730
al a

GrowCoK 21.25 +0.17 19.0 EqtyInc r NA ... NA

e
5GlbFxdInc 10.92 ... 0.5 InvGB 7.66 -0.02 -1.6 ITIGradeAdml 9.37 -0.02 -1.7 InstIdx 265.85 +1.43 10.1
Oakmark NA ... NA
LTGradeAdml 9.66 -0.08 -6.2 2932.19 2.5 High Yield 100 5.815 4.977 6.319 753.64 -0.2 Canada 2.350 1.930 2.450
EmgMktVa 28.92 +0.16 -7.4 InvGrBd 10.88 -0.03 -1.3 InstPlus 265.88 +1.43 10.1
OakmrkInt NA ... NA
EmMktCorEq 20.64 +0.10-10.6 LowP r MidCpAdml 205.43 +1.02 8.0 InstTStPlus 64.95 +0.34 10.4 370.63 0.04 EMU§ 1.276 0.956 1.362
52.16 +0.29 2.6 381.94 0.8 Global High Yield Constrained 6.079 4.934 6.298
ci on

Old Westbury Fds

IntlCoreEq 13.92 +0.14 -3.1 MagIn 11.23 +0.09 12.6 MorgAdml 105.36 +0.84 16.2 MidCpInst 45.38 +0.22 8.0
LrgCpStr 15.00 +0.06 3.7
IntlVal 19.27 +0.24 -4.2 OTC 12.61 +0.09 19.2 MuHYAdml 11.13 -0.02 ... MidCpIstPl 223.82 +1.11 8.0 306.63 0.1 Europe High Yield Constrained 3.305 1.897 3.611 714.79 0.6 France 0.890 0.690 1.040
Oppenheimer Y MuIntAdml 13.78 -0.02 -0.5
IntSmCo 20.54 +0.18 -3.2 Puritn 24.96 +0.09 7.3 SmCapInst 78.73 +0.35 11.8
IntSmVa 21.40 +0.21 -6.8 SrsEmrgMkt 18.65 +0.10-12.9
DevMktY NA ... NA MuLTAdml 11.29 -0.02 -0.8 SmCapIstPl 227.24 +1.00 11.8
U.S Agency Bloomberg Barclays 510.51 0.6 Germany 0.510 0.340 0.740
TAUSCoreEq2 19.58 +0.10 8.6 IntGrowY 41.33 +0.25 -5.2 MuLtdAdml 10.81 -0.01 0.6
SrsGroCoRetail 19.89 +0.16 19.6 STIGradeInst 10.45 ... 0.2 1627.26 -0.6 U.S Agency 3.010 1.840 3.010 288.10 -0.2 Japan 0.460 0.340 0.470
US CoreEq1 24.86 +0.12 9.8 PGIM Funds Cl Z MuShtAdml 15.70 -0.01 1.0
SrsIntlGrw 16.32 +0.09 1.1 TotBdInst 10.35 -0.03 -1.8
TotalReturnBond 13.93 -0.05 -2.2
-0.1
US CoreEq2 23.25 +0.11 8.4 SrsIntlVal 10.36 +0.09 -3.1 PrmcpAdml r151.61 +0.67 13.5 TotBdInst2 10.32 -0.03 -1.8 1461.64 10-20 years 2.920 1.650 2.920 564.36 0.7 Netherlands 0.600 0.440 0.830
er rs

US Small 39.34 +0.13 9.9 TotalBond 10.30 -0.03 -1.3 PIMCO Fds Instl RealEstatAdml117.66 -0.61 2.0 TotBdInstPl 10.35 -0.03 -1.8
US SmCpVal 40.69 +0.08 7.5 First Eagle Funds AllAsset NA ... NA SmCapAdml 78.73 +0.35 11.8 TotIntBdIdxInst 32.73 -0.03 1.3 3258.56 -3.8 20-plus years 3.500 2.860 3.550 917.78 -1.4 U.K. 1.730 1.470 1.830
US TgdVal 26.38 +0.07 6.4 GlbA 58.94 +0.39 -0.2 ShortT NA ... NA SmGthAdml 66.20 +0.46 17.4 TotIntlInstIdx r115.55 +0.98 -4.0
USLgVa 40.36 +0.26 4.2 FPA Funds TotRt 9.85 -0.03 -2.3 STBondAdml 10.21 -0.01 -0.3 2424.59 -1.6 Yankee 3.820 2.720 3.820 767.75 -5.0 Emerging Markets ** 6.877 5.371 7.003
TotItlInstPlId r115.57 +0.98 -4.0
Dodge & Cox FPACres NA ... NA PIMCO Funds A STIGradeAdml 10.45 ... 0.2 TotStInst 73.07 +0.38 10.4 *Constrained indexes limit individual issuer concentrations to 2%; the High Yield 100 are the 100 largest bonds † In local currency § Euro-zone bonds
Balanced 109.14 +0.27 4.2 Franklin A1 IncomeFd 11.85 -0.01 -0.9 TotBdAdml 10.35 -0.03 -1.8 ValueInst 43.67 +0.17 6.7 ** EMBI Global Index Sources: ICE Data Services; Bloomberg Barclays; J.P.Morgan
m e

GblStock 13.80 +0.05 -0.4 CA TF A1 p 7.23 -0.01 -0.9 PIMCO Funds I2 TotIntBdIdxAdm 21.81 -0.02 1.2 Western Asset
Income 13.43 -0.03 -0.8 IncomeA1 p 2.33 +0.01 1.8 Income 11.85 -0.01 -0.7 TotIntlAdmIdx r 28.89 +0.24 -4.1 CorePlusBdI 11.19 -0.02 -2.7

Global Government Bonds: Mapping Yields

m rp

ADVERTISEMENT Yields and spreads over or under U.S. Treasurys on benchmark two-year and 10-year government bonds in
selected other countries; arrows indicate whether the yield rose(s) or fell (t) in the latest session

Business Real Estate & Auctions

To advertise: email sales.realestate@wsj.com or WSJ.com/classifieds
Country/
Coupon (%) Maturity, in years Latest(l)-2 -1 0 1 2
Yield (%)
3 4 Previous Month ago Year ago
Spread Under/Over U.S. Treasurys, in basis points
Latest Prev Year ago
co Fo

2.625 U.S. 2 2.791 s l 2.774 2.612 1.397

2.875 10 3.048 s l 2.991 2.860 2.231
MARYLAND FLORIDA 1.750 Australia 2 2.076 s l 2.037 1.998 1.990 -71.5 -73.7 59.3
2.250 10 2.670 s l 2.634 2.556 2.807 -37.8 -35.7 57.7
0.000 France 2 -0.347 s l -0.358 -0.443 -0.470 -313.2 -186.6
     -313.7
  
    

  0.750 10 0.792 s l 0.773 0.665 0.731 -225.6 -221.8 -149.9

0.000 Germany 2 -0.511 s l -0.534 -0.654 -0.688 -330.2 -330.8 -208.5
 
    
     0.250 10 0.485 s l 0.458 0.307 0.455 -256.4 -253.3 -177.6
     
       0.350 Italy 2 0.634 t 0.718 1.284 -0.090 -205.6 -148.7
     l -215.6
2.800 10 2.780 t l 2.865 3.122 2.069 -26.8 -12.5 -16.2
 

  


   ! "
0.100 Japan 2 -0.109 s l -0.109 -0.131 -0.136 -290.0 -288.3 -153.3
     
    # $%&'( )%*&+ '%, +'($+ 0.100 10 0.116 s l 0.111 0.095 0.040 -293.2 -288.0 -219.1

     
n-

# "*-+&./('++ '0$%*&*$+ 1%.+*&$ 1.150 Spain 2 -0.206 s l -0.216 -0.302 -0.312 -299.7 -298.9 -170.9
%,*%5%. /0 "% *)(&05%. "$ - 7-&.%6 '/$,% -(/ 20)(,%8 206/-*6*67  #6*/' #  2(11-3('%+4 +&),*1 &1   1.400 10 1.501 s l 1.492 1.452 1.580 -154.7 -149.8 -65.1
1% #6*/ )*8 *' "%,*%5%. /0 *62,#.% 9 06%: #6*/' -6.  /+0: #6*/' 2.000 U.K. 2 0.831 s l 0.812 0.709 0.424 -195.9 -196.2 -97.3

-,, -#,
00(%& -/ : ;: ; "1- 3-1+3$/&)+! 3($'+$ /'(( 4.250 10 1.424 s l 1.390 1.235 1.304 -162.4 -160.0 -92.7
no

! "#$%&' (&%)*#) +*,, "% -..%. /0 /1%


 1-))%& (&*2% 3 %(0'*/ 4#,, /%&)'  5 566 Source: Tullett Prebon
-5-*,-",% 06 0#& +%"'*/%


  Corporate Debt

Price moves by a company's debt in the credit markets sometimes mirror and sometimes anticipate, moves in
that same company’s share price.
FLORIDA
   
     
Investment-grade spreads that tightened the most…
    
    Spread*, in basis points Stock Performance
   
Issuer Symbol Coupon (%) Maturity Current One-day change Last week Close ($) % chg

Banco Bilbao Vizcaya Argentaria BBVASM 6.125 Nov. 16, ’49 432 –18 n.a. ... ...
GEORGIA PACCAR Financial PCAR 3.100 May 10, ’21 19 –16 n.a. ... ...
Mcdonald's MCD 6.300 March 1, ’38 137 –15 n.a. 157.77 –0.23
Bank of America BAC 5.200 June 1, ’49 228 –11 230 30.21 –0.23
       

Citigroup C 6.625 June 15, ’32 177 –11 182 71.36 0.68
   

Morgan Stanley MS 3.950 April 23, ’27 136 –11 156 47.85 0.36
     New York Life Global Funding NYLIFE 2.000 April 13, ’21 29 –10 n.a. ... ...
      MassMutual Global Funding II MASSMU 1.950 Sept. 22, ’20 32 –8 n.a. ... ...
  



 
      …And spreads that widened the most
 UniCredit Spa Roma UCGIM 3.750 April 12, ’22 202 17 208 ... ...
JPMorgan Chase JPM 4.250 Oct. 15, ’20 43 13 32 114.30 0.40
VMware VMW 2.950 Aug. 21, ’22 106 10 n.a. 153.40 –2.30
INVESTMENT PROPERTIES AbbVie ABBV 4.875 Nov. 14, ’48 183 9 n.a. 92.61 –2.89
WYOMING CME Group CME 3.000 Sept. 15, ’22 44 9 n.a. 172.40 0.33
Deutsche Bank* DB 4.500 April 1, ’25 250 8 270 11.58 0.61
  Goldman Sachs GS 3.000 April 26, ’22 76 8 n.a. 228.89 0.44
 
     Analog Devices ADI 3.500 Dec. 5, ’26 107 7 111 91.86 0.60
 
   
 High-yield issues with the biggest price increases…
     Bond Price as % of face value Stock Performance
Issuer Symbol Coupon (%) Maturity Current One-day change Last week Close ($) % chg

     
  Legacy Reserves LGCY 6.625 Dec. 1, ’21 84.500 2.25 77.000 4.91 –0.61
Windstream Services WIN 9.000 June 30, ’25 77.000 2.00 71.000 ... ...
Dish DBS DISH 5.875 Nov. 15, ’24 90.000 1.88 86.625 ... ..
PENNSYLVANIA EP Energy EPENEG 9.375 May 1, ’24 80.000 1.64 77.500 ... ...
Intelsat Luxembourg INTEL 8.125 June 1, ’23 86.250 1.25 85.981 ... ...
PDC Energy PDCE 5.750 May 15, ’26 94.500 1.00 97.000 47.71 –0.10
Ensco ESV 5.200 March 15, ’25 85.500 0.90 n.a. 7.40 3.93
California Resources CRC 8.000 Dec. 15, ’22 91.000 0.88 89.750 39.81 8.18

…And with the biggest price decreases

Neiman Marcus NMG 8.000 Oct. 15, ’21 65.625 –8.38 67.500 ... ...
FLORIDA FLORIDA Acosta ACOSTA 7.750 Oct. 1, ’22 31.500 –6.50 n.a. ... ...
 

   
  
 Tesla TSLA 5.300 Aug. 15, ’25 85.875 –1.12 85.000 284.96 –3.35
  
 
  
( ) )
)) )*+,
Sprint S 7.125 June 15, ’24 103.250 –1.00 103.500 6.42 1.42
*  -
 .(. 6.875 April 15, ’22 51.750 –0.75 51.500 ... ...
  
    
    
)   ,
Ultra Resources UPL

 
    (    ) 

!"# $
% & Garda World Security GWCN 8.750 May 15, ’25 95.750 –0.69 97.500 ... ...
   % % %$$  '$ CHS/Community Health Systems CYH 7.125 July 15, ’20 88.375 –0.63 88.250 3.39 3.67
   
     ) ( /. !(00
               !
"  
Harland Clarke Holdings HARCLA 9.250 March 1, ’21 93.750 –0.63 91.250 ... ...
"# *+)-$)#,%)#
!"# "    $" %& '   ((  ) 


)#, *+)- *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.
 1 &% )#, '(.02.
    * (       Note: Data are for the most active issue of bonds with maturities of two years or more
Sources: MarketAxess Corporate BondTicker; Dow Jones Market Data
 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.

THE WALL STREET JOURNAL. Wednesday, September 19, 2018 | B11

COMMODITIES WSJ.com/commodities

Futures Contracts Open

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

Metal & Petroleum Futures Natural Gas (NYM)-10,000 MMBtu.; $ per MMBtu. Cattle-Feeder (CME)-50,000 lbs.; cents per lb. Dec 97.3600 97.3750 97.3600 97.3700 .0100 1,783,581
Oct 2.817 2.937 2.811 2.933 .119 98,800 Sept 157.050 157.100 155.650 155.825 –1.500 2,592 June'19 97.0250 97.0450 97.0100 97.0200 … 1,302,379
Contract Open Nov 158.625 159.400 s 157.525 157.825 –1.200 16,956 Dec 96.8750 96.9000 96.8500 96.8600 –.0100 2,034,789
Nov 2.781 2.899 2.777 2.896 .117 277,099
Open High hi lo Low Settle Chg interest Cattle-Live (CME)-40,000 lbs.; cents per lb.
Dec 2.864 2.964 2.860 2.961 .099 169,251
Copper-High (CMX)-25,000 lbs.; $ per lb. Jan'19 2.953 3.054 2.951 3.050 .098 186,533 Oct 113.250 113.575 113.025 113.225 –.200 58,275 Currency Futures
Sept 2.6310 2.7200 2.5950 2.7120 0.0785 1,923 March 2.826 2.897 2.823 2.893 .068 204,762 Dec 118.000 118.275 117.650 117.975 –.125 107,100
Dec 2.6505 2.7400 2.5880 2.7305 0.0795 140,209 April 2.594 2.626 2.585 2.614 .025 164,221 Hogs-Lean (CME)-40,000 lbs.; cents per lb. Japanese Yen (CME)-¥12,500,000; $ per 100¥
Gold (CMX)-100 troy oz.; $ per troy oz. Oct 57.400 59.450 57.400 59.175 2.725 39,219 Oct .8961 .8964 .8917 .8917 –.0040 1,922
Sept 1198.70 1198.70 1197.60 1196.80 –2.90 17 56.025 58.075 55.950 57.975 2.600 96,127 Dec .9001 .9014 .8955 .8957 –.0041 184,554
Agriculture Futures Dec
Canadian Dollar (CME)-CAD 100,000; $ per CAD
Oct 1201.90 1203.50 1196.10 1198.50 –2.70 33,338 Lumber (CME)-110,000 bd. ft., $ per 1,000 bd. ft.
Dec 1206.40 1208.20 1200.30 1202.90 –2.90 365,721 Corn (CBT)-5,000 bu.; cents per bu. Nov 358.90 359.90 t 348.10 348.10 –15.00 2,854 Oct .7660 .7712 .7660 .7708 .0027 324
Feb'19 1208.40 1213.70 1206.10 1208.60 –2.90 41,414 Dec 348.00 348.75 t 342.50 343.25 –4.75 963,646 Jan'19 356.50 356.50 t 341.50 342.90 –13.60 676 Dec .7684 .7723 .7667 .7716 .0026 110,693
June 1219.60 1223.80 1218.20 1220.10 –2.90 12,081 March'19 360.25 360.75 t 354.75 355.50 –4.50 308,424 Milk (CME)-200,000 lbs., cents per lb. British Pound (CME)-£62,500; $ per £
Dec 1238.20 1241.20 1238.20 1238.30 –2.90 5,015 Oats (CBT)-5,000 bu.; cents per bu. Sept 16.11 16.15 t 16.11 16.13 .01 3,773 Oct 1.3159 1.3182 1.3139 1.3154 –.0023 979
Palladium (NYM) - 50 troy oz.; $ per troy oz. Dec 242.75 246.50 238.50 245.75 2.75 3,506 Oct 16.15 16.18 16.01 16.06 –.05 4,417 Dec 1.3210 1.3227 1.3170 1.3190 –.0023 234,682
Sept 1010.10 1025.70 1010.10 1027.40 22.10 26 March'19 244.00 250.25 243.00 250.25 2.25 481 Cocoa (ICE-US)-10 metric tons; $ per ton. Swiss Franc (CME)-CHF 125,000; $ per CHF
Dec 977.00 1006.20 972.70 1004.80 27.80 16,366 Soybeans (CBT)-5,000 bu.; cents per bu. Dec 2,238 2,281 2,224 2,242 6 112,012 Dec 1.0473 1.0499 1.0439 1.0445 –.0029 54,821
March'19 970.40 998.00 s 970.40 997.70 27.70 661 Nov 821.00 825.25 t 812.25 814.00 –9.50 442,210 March'19 2,258 2,296 2,246 2,258 5 64,377 March'19 1.0573 1.0595 1.0546 1.0543 –.0030 237
Platinum (NYM)-50 troy oz.; $ per troy oz. Jan'19 835.00 839.00 t 826.25 828.00 –9.25 126,299 Coffee (ICE-US)-37,500 lbs.; cents per lb. Australian Dollar (CME)-AUD 100,000; $ per AUD
Oct 800.50 819.10 794.20 814.90 14.00 62,439 Soybean Meal (CBT)-100 tons; $ per ton. Sept 95.10 95.10 t 93.50 92.00 –1.45 31 Oct .7161 .7221 .7146 .7215 .0034 1,474
Jan'19 801.80 820.70 796.60 816.50 13.50 29,567 Oct 302.60 302.90 t 298.80 300.50 –2.40 50,131 Dec 97.30 98.20 t 95.10 95.85 –1.45 180,826 Nov .7220 .7220 .7196 .7216 .0034 488
Silver (CMX)-5,000 troy oz.; $ per troy oz. Dec 305.20 305.70 t 301.60 303.30 –2.40 224,159 Sugar-World (ICE-US)-112,000 lbs.; cents per lb. Dec .7180 .7225 .7146 .7217 .0034 159,306
Sept 14.115 14.115 14.060 14.084 –0.038 247 Soybean Oil (CBT)-60,000 lbs.; cents per lb. Oct 10.70 10.83 10.43 10.52 –.11 116,621 March'19 .7223 .7227 .7204 .7224 .0033 308
Dec 14.230 14.265 14.105 14.185 –0.038 174,714 Oct 27.43 27.46 t 27.09 27.12 –.31 50,010 March'19 11.60 11.75 11.39 11.50 –.08 418,724 Mexican Peso (CME)-MXN 500,000; $ per MXN
Crude Oil, Light Sweet (NYM)-1,000 bbls.; $ per bbl. Dec 27.68 27.72 t 27.34 27.37 –.33 275,197 Sugar-Domestic (ICE-US)-112,000 lbs.; cents per lb. Dec .05240 .05266 .05211 .05252 .00022 196,986
Oct 68.84 70.42 68.53 69.85 0.94 98,020 Rough Rice (CBT)-2,000 cwt.; $ per cwt. Nov 25.45 25.45 25.45 25.45 .04 1,925 Euro (CME)-€125,000; $ per €
Nov 68.61 70.17 68.29 69.59 0.91 399,222 Nov 1030.00 1030.00 t 1000.50 1004.50 –25.50 6,617 Jan'19 25.50 25.50 25.50 25.51 .01 1,944 Oct 1.1711 1.1746 1.1678 1.1691 –.0019 4,207
Dec 68.51 70.02 68.19 69.45 0.86 296,066 March'19 1050.00 1050.00 t 1032.00 1033.50 –25.00 496 Cotton (ICE-US)-50,000 lbs.; cents per lb. Dec 1.1767 1.1807 1.1734 1.1749 –.0020 458,290
Jan'19 68.34 69.84 68.06 69.30 0.83 161,107 Wheat (CBT)-5,000 bu.; cents per bu. Oct 82.01 82.01 79.17 79.15 –2.36 173
June 67.49 68.71 67.22 68.30 0.73 168,966 Dec 506.25 514.25 506.25 510.50 4.25 229,017 Dec 81.44 81.67 78.35 78.52 –2.79 143,914 Index Futures
Dec 65.72 67.02 s 65.67 66.62 0.61 233,998 March'19 525.25 533.00 525.00 529.00 3.75 109,287 Orange Juice (ICE-US)-15,000 lbs.; cents per lb.
NY Harbor ULSD (NYM)-42,000 gal.; $ per gal. Wheat (KC)-5,000 bu.; cents per bu. Mini DJ Industrial Average (CBT)-$5 x index
Nov 152.20 152.20 146.60 146.80 –5.70 10,081 26068 26331 25966 26274 198 44,028
Dec 511.75 521.00 510.75 516.00 3.25 155,840 Sept
Oct 2.2042 2.2563 2.1932 2.2357 .0293 94,282 Jan'19 152.15 152.15 146.90 147.30 –5.40 1,552
March'19 535.00 542.00 534.00 537.75 3.75 59,745 Dec 26102 26357 s 25991 26301 199 74,854
Nov 2.2083 2.2593 2.1971 2.2389 .0287 94,790
Gasoline-NY RBOB (NYM)-42,000 gal.; $ per gal. Wheat (MPLS)-5,000 bu.; cents per bu. S&P 500 Index (CME)-$250 x index
Interest Rate Futures Sept 2892.50 2912.00 2892.50 2906.50 15.50 62,583
Oct 1.9757 2.0252 1.9643 2.0049 .0281 69,847 Dec 573.75 581.00 573.50 580.25 5.00 33,319
March'19 588.00 595.25 588.00 594.75 4.75 13,145 Treasury Bonds (CBT)-$100,000; pts 32nds of 100% Dec 2890.20 2917.30 s 2884.00 2911.80 15.80 14,098
Nov 1.9630 2.0119 1.9526 1.9927 .0281 161,963
Sept 142-180 142-180 141-090 141-130 –1-00.0 3,336 Mini S&P 500 (CME)-$50 x index
Dec 141-260 141-310 140-150 140-200 –1-00.0 842,410 Sept 2890.50 2912.50 s 2878.50 2906.50 15.50 1,401,787
Treasury Notes (CBT)-$100,000; pts 32nds of 100% Dec 2895.50 2917.75 s 2883.50 2911.75 15.75 1,739,118
Mini S&P Midcap 400 (CME)-$100 x index
Cash Prices | WSJ.com/commodities
Sept 119-155 119-160 118-305 118-315 –10.5 30,611
Tuesday, September 18, 2018 Dec 119-075 119-105 118-230 118-255 –10.5 3,943,604 Sept 2027.00 2041.60 2024.20 2037.80 9.40 33,952
5 Yr. Treasury Notes (CBT)-$100,000; pts 32nds of 100% Dec 2036.80 2047.80 2029.80 2043.70 9.60 60,035
These prices reflect buying and selling of a variety of actual or “physical” commodities in the marketplace— Sept 112-295 112-302 112-230 112-242 –4.5 78,338 Mini Nasdaq 100 (CME)-$20 x index
separate from the futures price on an exchange, which reflects what the commodity might be worth in future Dec 112-217 112-240 112-135 112-152 –4.7 4,349,563 Sept 7434.3 7535.3 7393.5 7495.3 59.0 147,748
2 Yr. Treasury Notes (CBT)-$200,000; pts 32nds of 100% Dec 7463.5 7564.3 7422.3 7524.5 59.5 145,653
months. Sept 105-190 105-192 105-175 105-175 –1.2 17,987 Mini Russell 2000 (CME)-$50 x index
Tuesday Tuesday Tuesday Dec 105-127 105-135 105-107 105-115 –1.0 2,133,367 Sept 1703.40 1715.50 1697.80 1713.00 8.70 279,755
(U.S.$ equivalent) *14.1700 SoybeanMeal,Cent IL,rail,ton48%-u 310.00 30 Day Federal Funds (CBT)-$5,000,000; 100 - daily avg. Dec 1708.90 1720.70 1702.70 1718.10 8.70 358,966
Energy Mini Russell 1000 (CME)-$50 x index
Coins,wholesale $1,000 face-a 10538 Soybeans,No.1 yllw IL-bp,u 7.4500 Sept 98.048 98.050 98.045 98.045 –.002 115,147
Jan'19 97.640 97.640 t 97.625 97.630 –.005 277,580 Sept 1604.30 1614.80 1604.00 1611.90 8.70 5,079
Propane,tet,Mont Belvieu-g 1.0722 Wheat,Spring14%-pro Mnpls-u n.a.
Other metals 10 Yr. Del. Int. Rate Swaps (CBT)-$100,000; pts 32nds of 100% Dec 1609.50 1617.90 1609.50 1615.10 8.90 7,073
Butane,normal,Mont Belvieu-g 1.2470 Wheat,No.2 soft red,St.Louis-bp,u 4.7050 U.S. Dollar Index (ICE-US)-$1,000 x index
LBMA Platinum Price PM *801.0 Dec 98.922 98.922 t 98.547 98.625 –.313 30,991
NaturalGas,HenryHub-i 2.970 Wheat - Hard - KC (USDA) $ per bu-u 5.1600 Dec 94.18 94.32 93.88 94.23 .15 55,401
Platinum,Engelhard industrial 817.0 1 Month Libor (CME)-$3,000,000; pts of 100%
NaturalGas,TranscoZone3-i 2.960 Wheat,No.1soft white,Portld,OR-u 5.9550 Oct ... ... ... 97.7350 … 60 March'19 93.65 93.75 93.48 93.72 .15 1,045
Platinum,Engelhard fabricated 917.0
NaturalGas,TranscoZone6NY-i 3.270 Food Eurodollar (CME)-$1,000,000; pts of 100%
Palladium,Engelhard industrial 1004.0
NaturalGas,PanhandleEast-i 2.110 Oct 97.5725 97.5850 s 97.5700 97.5825 .0125 238,133 Source: SIX Financial Information
Palladium,Engelhard fabricated 1104.0 Beef,carcass equiv. index
NaturalGas,Opal-i 2.450
Aluminum, LME, $ per metric ton *1985.0 choice 1-3,600-900 lbs.-u 179.67
NaturalGas,MarcellusNE PA-i 2.660
2.7120
New Highs and Lows | WSJ.com/newhighs
Copper,Comex spot select 1-3,600-900 lbs.-u 169.41
NaturalGas,HaynesvilleN.LA-i 2.870 52-Wk % 52-Wk %
Iron Ore, 62% Fe CFR China-s n.a. Broilers, National comp wghtd-u,w 0.8308 Stock Sym Hi/Lo Chg Stock Sym Hi/Lo Chg
Coal,C.Aplc.,12500Btu,1.2SO2-r,w 74.300
Shredded Scrap, US Midwest-s,m n.a. Butter,AA Chicago 2.2750
Coal,PwdrRvrBsn,8800Btu,0.8SO2-r,w 12.100 Continued From Page B8 52-Wk % 52-Wk % LightInTheBox LITB 1.00 -1.9 RepublicFirstBncp FRBK 7.10 -1.4
Steel, HRC USA, FOB Midwest Mill-s n.a. Cheddar cheese,bbl,Chicago 140.75 52-Wk % Stock Sym Hi/Lo Chg Stock Sym Hi/Lo Chg MagneGas MNGA 0.13 -8.0 ReShapeLifesci RSLS 0.04 -15.9

.
Metals Cheddar cheese,blk,Chicago 161.50 Stock Sym Hi/Lo Chg CBL AssocPfdD CBLpD 16.10 1.4 FarPointAcqnUn FPAC.U 10.06 -0.4 MethodeElec MEI 36.75 -2.6 SPIEnergy SPI 0.26 -6.7
Fibers and Textiles SAEX 5.40 -26.2
86.75 METpE 24.95 0.1 SAExploration

ly
Gold, per troy oz Milk,Nonfat dry,Chicago lb. CBL AssocPfdE CBLpE 14.69 0.5 FarPointAcqnA FPAC 9.55 ... MetLifePfdE

Engelhard industrial 1203.69 Burlap,10-oz,40-inch NY yd-n,w 0.5700 Cocoa,Ivory Coast-w n.a. Lows CCA Industries CAW 2.40 -2.0 FiveStarSrLiving FVE 0.81 -4.4 MicrobotMed
MOD
MBOT 5.47 3.2 SanJuanBasin
14.90 -2.9 SanchezMidstrm
SJT
SNMP
4.66 -8.6
6.85 -10.8
CapStarFin CSTR 16.52 -0.5 FlexPharma FLKS 0.41 -1.1 ModineMfg
Cotton,1 1/16 std lw-mdMphs-u 0.7727 Coffee,Brazilian,Comp 0.9678
Engelhard fabricated 1293.97 AT&T Nts 2067 TBC 24.78 -0.1
CarriageSvcs CSV 22.00 -0.3 Flexsteel FLXS 32.10 -1.7 MolecularTemp MTEM 4.00 0.7 ScientificGames SGMS 24.35 6.0
Cotlook 'A' Index-t *91.30 Coffee,Colombian, NY 1.2244 Achaogen AKAO 4.06 4.1 6.65 -1.5 SelectInterior SIC 10.90 -2.7
Handy & Harman base 1200.00 ChinaAutoSys CAAS 3.58 -3.0 FusionConnect FSNN 3.05 -7.8 NL Industries NL
Hides,hvy native steers piece fob-u n.a. Eggs,large white,Chicago-u 0.9150 AchieveLifeSci ACHV 2.40 -0.4 4.85 -2.9 SequansComms SQNS 1.39 -0.7
1332.22 NEOS
Handy & Harman fabricated
LBMA Gold Price AM
LBMA Gold Price PM
Krugerrand,wholesale-e
*1196.80
*1201.90
1243.94
Wool,64s,staple,Terr del-u,w

Grains and Feeds

on n.a. Flour,hard winter KC
Hams,17-20 lbs,Mid-US fob-u
Hogs,Iowa-So. Minnesota-u
14.75
0.57
58.82
Alpha&OmegaSem AOSL
Altimmune
Amedica
ALT
AMDA
11.95 -1.6
4.27 -12.7
0.25 -8.4
ChinaFinance JRJC
ChinaGreenAg CGA
ChinaLending CLDC
CitigroupWt19 C.WS.A
1.66 -1.2 FutureFinTech FTFT
0.87 5.7 FVCBankcorp
0.83 -2.3 GabelliCvIncmRt GCVr
0.00 -28.6 GenoceaBiosci GNCA
FVCB
1.08 3.6 NeosTherap
19.80 -0.2 NewOrientalEduc EDU
0.09 -11.6 NewYorkREIT NYRT
0.49 -1.1 Newmark NMRK
67.23 -1.7 ShipFinance
17.20 -1.3
11.02 -1.3
Sohu.com
Sonos
StrongbridgeBio
SFL
SOHU
SONO
SBBP
13.50 -0.7
19.43 -2.1
13.53 -7.0
3.85 -2.4
AmericanWoodmark AMWD 80.10 1.0
Pork bellies,12-14 lb MidUS-u 1.0972 Cohbar CWBR 4.24 -3.4 GovtPropIncoTr GOV 11.77 -6.9 NewsCorp A NWSA 12.24 1.2
22.87 0.1
Maple Leaf-e 1255.91 Barley,top-quality Mnpls-u n.a. AmpliphiBiosci APHB 0.76 -11.7 CommunityFin TCFC 33.10 -0.6 GrindrodShipping GRIN 7.51 -3.7 NewtekBusNts2022 NEWTZ 25.22 ...
SunTrustBksPfA STIpA
Pork loins,13-19 lb MidUS-u 1.1039
us l,

Sunworks SUNW 0.52 8.6

American Eagle-e 1255.91 Bran,wheat middlings, KC-u,w 82 ApproachRscs AREX 1.96 3.1 ComstockMining LODE 0.13 2.5 Helios&Matheson HMNY 0.01 -20.0 NiaMoPwr pfC NMKpC 94.03 -2.1
Steers,Tex.-Okla. Choice-u n.a. ARLO 16.63 -4.4
Synnex SNX 92.22 ...
Mexican peso-e 1450.14 Corn,No. 2 yellow,Cent IL-bp,u 2.9150 ArloTech ConstellPharm CNST 6.40 -15.0 Hilltop HTH 20.01 0.6 NobleMidstream NBLX 37.75 -1.7
Steers,feeder,Okla. City-u,w 167.25 Arsanis ASNS 1.65 -3.5
SyntheticBio SYN 2.00 1.5
Austria crown-e 1175.42 Corn gluten feed,Midwest-u,w 112.9 CrackerBarrel CBRL 141.63 -4.6 HudsonTech HDSN 1.22 -1.5 Oi OIBR.C 2.48 -3.5
TKKSymphonyWt TKKSW 0.16 ...
al a

AscentCapital A ASCMA 0.76 -9.0

1255.91 Fats and Oils CustomersBncpPfdC CUBIpC 25.90 -0.5 iClickInteract ICLK 4.33 -9.8 OneHorizon OHGI 0.20 -1.3
e
Austria phil-e Corn gluten meal,Midwest-u,w 442.3 TMSRHolding TMSR 2.22 -4.7
AtossaGenetics ATOS 1.41 -5.8 DGSE DGSE 0.60 2.8 Insmed INSM 18.64 2.6 Opera OPRA 10.09 -6.1
Silver, troy oz. TakungArt TKAT 0.68 ...
Cottonseed meal-u,w 258 Corn oil,crude wet/dry mill-u,w 26.3300 AutoNation AN 42.87 -1.0 DelphiTechs DLPH 33.08 -1.5 InspireMD NSPR 0.17 -5.6 ParatekPharma PRTK 9.00 0.6 TelefonicaBras VIV 9.31 1.0
Engelhard industrial 14.2000 Hominy feed,Cent IL-u,w 95 Grease,choice white,Chicago-h 0.2450 AvadelPharm AVDL 4.18 0.7 Deluxe DLX 55.72 0.1 InvestorsTitle ITIC 162.03 -0.7 PlayaHotels PLYA 8.89 -4.6
ci on

TerritBanc TBNK 29.16 -1.0

Engelhard fabricated 17.0400 Meat-bonemeal,50% pro Mnpls-u,w 238 Lard,Chicago-u 0.3300 AvenueTherap ATXI 2.38 28.4 EdgeTherap EDGE 0.70 -8.0 JD.com JD 25.27 0.1 PrudentialNt58 PRS 24.72 -0.2 TorchlightEner TRCH 0.86 ...
Handy & Harman base 14.2010 Oats,No.2 milling,Mnpls-u 2.8425 Soybean oil,crude;Centl IL-u 0.2675
BankOZK OZK 38.11 -1.4 Endologix ELGX 1.70 -5.5 JounceTherap JNCE 6.26 0.1 PublicStoragePfY PSApY 25.54 -0.1 TrinityMerger TMCX 9.71 0.3
BankofAmWtB BAC.WS.B 0.46 -4.7 ESNC 0.18 -1.1 KalaPharm KALA 10.34 0.4 Puxin NEW 8.21 -8.1
Handy & Harman fabricated 17.7510 Rice, Long Grain Milled, No. 2 AR-u,w 24.75 Tallow,bleach;Chicago-h 0.2525
EnSync Unifi UFI 28.37 -2.0
Barclays BCS 9.06 -0.7 EstablishLabs ESTA 23.55 -4.3 KitovPharma KTOV 1.60 -13.0 Qutoutiao QTT 9.01 -1.6 Vaxart VXRT 2.37 -4.9
LBMA spot price *£10.8100 Sorghum,(Milo) No.2 Gulf-u 7.2000 Tallow,edible,Chicago-u n.a. BassettFurniture BSET 20.90 -1.2 Exterran EXTN 24.15 2.2 KronosWorldwide KRO 16.45 -1.1 RELX RELX 20.23 -1.9 VectorGroup VGR 14.20 -2.6
Big5SportingGds BGFV 4.65 -3.0 ExtremeNetworks EXTR 5.25 2.7 LadenburgNts27 LTSL 22.86 -3.9 RadiusHealth RDUS 16.71 -1.5 Whirlpool WHR 121.12 -0.8
KEY TO CODES: A=ask; B=bid; BP=country elevator bids to producers; C=corrected; E=Manfra,Tordella & Brooks; G=ICE; H=Hurley Brokerage; I=Natural Gas Intelligence; Bio-Path BPTH 1.08 -4.0 Eyenovia EYEN 4.21 1.1 Lear LEA 152.62 -1.3 RealmTherap RLM 3.34 77.8 Xperi XPER 14.50 -0.3
er rs

M=monthly; N=nominal; n.a.=not quoted or not available; R=SNL Energy; S=Platts-TSI; T=Cotlook Limited; U=USDA; W=weekly, Z=not quoted. *Data as of 9/17
Source: Dow Jones Market Data
Borrowing Benchmarks | WSJ.com/bonds
Exchange-Traded BANKRATE.COM® MMA, Savings and CDs
m e

Money Rates September 18, 2018

Portfolios Average Yields of Major Banks Tuesday, September 11, 2018
Key annual interest rates paid to borrow or lend money in U.S. and international markets. Rates below are a
m rp

Largest 100 exchange-traded funds,

guide to general levels but don’t always represent actual transactions.
Type MMA 1-MO 2-MO 3-MO 6-MO 1-YR 2-YR 2.5YR 5YR
latest session Week —52-WEEK— Week —52-WEEK—
National average Inflation Latest ago High Low Latest ago High Low
Savings 0.19 0.08 0.08 0.22 0.30 0.56 0.75 0.70 1.18 Aug. index Chg From (%)
Tuesday, September 18, 2018 Six month 2.56788 2.55775 2.57075 1.47861
Jumbos 0.37 0.08 0.08 0.24 0.32 0.59 0.79 0.77 1.25 level July '18 Aug. '17 Treasury bill auction
Closing Chg YTD
Weekly change One year 2.87950 2.86850 2.88019 1.74428
ETF Symbol Price (%) (%) 4 weeks 2.020 1.975 2.020 0.960
Savings -0.01 0.00 -0.01 -0.02 -0.02 -0.02 -0.02 -0.04 -0.02 U.S. consumer price index Euro Libor
co Fo

AlerianMLPETF AMLP 10.86 0.18 0.6 13 weeks 2.125 2.110 2.125 1.045
CnsmrDiscSelSector XLY 116.94 1.27 18.5 Jumbos -0.01 0.00 0.00 -0.02 -0.02 -0.04 -0.03 -0.06 -0.04 All items 252.146 0.06 2.7 One month -0.407 -0.398 -0.390 -0.420
26 weeks 2.290 2.265 2.290 1.170
CnsStapleSelSector XLP 54.73 –0.42 –3.8 Core 258.012 0.06 2.2 Three month -0.352 -0.356 -0.349 -0.389
EnSelectSectorSPDR XLE 74.87 0.66 3.6 Six month -0.313 -0.318 -0.304 -0.339
FinSelSectorSPDR
FT DJ Internet
XLF
FDN
28.25
141.24
0.50
1.03
1.2
28.5
Consumer Savings Rates International rates
Secondary market
One year -0.219 -0.220 -0.210 -0.263
HealthCareSelSect XLV 93.73 0.58 13.4 Explanation of ratings: Safe Sound SM, (855) 733-0700, evaluates the financial condition of fed- Fannie Mae
Week 52-Week Euro interbank offered rate (Euribor)
IndSelSectorSPDR XLI 79.82 0.91 5.5 erally insured institutions and assigns a rank of 1,2,3,4 or 5 based on data from the fourth quarter 30-year mortgage yields
InvscQQQI QQQ 182.84 0.83 17.4 of 2017 from federal regulators. 5: most desirable performance; NR: institution is too new to rate, Latest ago High Low One month -0.372 -0.372 -0.366 -0.373
InvscS&P500EW RSP 107.88 0.47 6.8 30 days 4.314 4.265 4.344 3.383 Three month -0.319 -0.319 -0.319 -0.331
not an indication of financial strength or weakness. Information is believed to be reliable, but not
iSh3-7YTreasuryBd IEI 118.98 –0.20 –2.6 Prime rates 60 days 4.336 4.287 4.371 3.412 Six month -0.268 -0.269 -0.265 -0.279
iShCoreMSCIEAFE IEFA 63.83 1.04 –3.4 guaranteed.
U.S. 5.00 5.00 5.00 4.25 One year -0.168 -0.166 -0.165 -0.194
iShCoreMSCIEmgMk IEMG 50.78 0.85 –10.8
High yield savings Other short-term rates
iShCoreMSCITotInt IXUS 59.87 0.96 –5.1 Canada 3.70 3.70 3.70 3.20 Value 52-Week
iShCoreS&P500 IVV 293.07 0.56 9.0 Bank/rank Yield Bank/rank Yield Latest Traded High Low
Japan 1.475 1.475 1.475 1.475 Week 52-Week
iShCoreS&P MC IJH 203.80 0.43 7.4 Phone number Minimum (%) Phone number Minimum (%) Latest ago high low
iShCoreS&P SC IJR 88.73 0.28 15.5 DTCC GCF Repo Index
iShS&PTotlUSStkMkt ITOT 66.82 0.54 9.3 Money market and savings account Six-month CD Policy Rates
iShCoreUSAggBd AGG 105.44 –0.22 –3.6 Call money Treasury 1.987 23.100 2.233 1.022
HSBC Bank USA, N.A. /3 $1 2.01 VirtualBank /4 $10,000 2.12 Euro zone 0.00 0.00 0.00 0.00
iShSelectDividend DVY 102.32 0.19 3.8 3.75 3.75 3.75 3.00 MBS 1.999 63.450 2.321 1.038
iShEdgeMSCIMinEAFE EFAV 72.76 1.01 –0.3
(800) 975-HSBC (877) 998-2265 Switzerland 0.50 0.50 0.50 0.50
n-

iShEdgeMSCIMinUSA USMV 57.42 0.33 8.8 VirtualBank /4 $100 2.01 CD Bank /4 $10,000 2.10 Britain 0.75 0.75 0.75 0.25 Open Implied
Commercial paper (AA financial) Settle Change Interest Rate
iShEdgeMSCIUSAMom MTUM 118.16 1.07 14.6 (877) 998-2265 (888) 201-8185 Australia 1.50 1.50 1.50 1.50
iShFloatingRateBd FLOT 51.01 0.04 0.4 ableBanking,adivisionofNortheastBank/5 $250 1.85 First Internet Bank of Indiana /4 $1,000 2.07 90 days 2.23 2.19 2.31 1.14
iShGoldTr IAU 11.49 –0.09 –8.2 Overnight repurchase DTCC GCF Repo Index Futures
(877) 505-1933 (888) 873-3424 Libor
iShiBoxx$InvGrCpBd LQD 114.56 –0.41 –5.8 Treasury Sep 97.945 unch. 2174 2.055
iShiBoxx$HYCpBd HYG 86.26 –0.01 –1.1 One-month CD One-year CD U.S. 2.00 2.01 2.18 1.01
One month 2.16525 2.14794 2.16813 1.23222 Treasury Oct 97.750 unch. 1030 2.250
no

iShJPMUSDEmgBd EMB 106.03 –0.31 –8.7

iShMBSETF MBB 103.13 –0.26 –3.2
EH National Bank /4 $0 0.83 M.Y. Safra Bank, FSB /NR $1,000 2.63 U.S. government rates Three month 2.33750 2.33425 2.36906 1.32306 Treasury Nov 97.735 unch. 518 2.265
iShMSCI ACWI ACWI 73.76 0.71 2.3 (888) 392-5265 (212) 652-7200
iShMSCI EAFE EFA 67.52 1.05 –4.0 M.Y. Safra Bank, FSB /NR $1,000 0.30 CD Bank /4 $10,000 2.60 Discount
iShMSCI EAFE SC SCZ 62.78 1.08 –2.7 (212) 652-7200 (888) 201-8185 2.50 2.50 2.50 1.75 Notes on data:
iShMSCIEmgMarkets EEM 41.98 0.96 –10.9 Mount McKinley Bank /5 $5,000 0.15 Goldman Sachs Bank USA /5 $500 2.55 U.S. prime rate is the base rate on corporate loans posted by at least 70% of the 10 largest U.S. banks,
iShMSCIEurozone EZU 41.09 0.66 –5.3 Federal funds and is effective June 14, 2018. Other prime rates aren’t directly comparable; lending practices vary
iShMSCIJapan EWJ 59.54 2.39 –0.7
(907) 452-1751 (855) 730-7283
widely by location; Discount rate is effective June 14, 2018. DTCC GCF Repo Index is Depository
117.51 1.12 10.1 Effective rate 1.9600 1.9400 1.9600 1.0700
iShNasdaqBiotech IBB Two-month CD Two-year CD 2.1500 2.2000 1.3125
Trust & Clearing Corp.'s weighted average for overnight trades in applicable CUSIPs. Value traded is in
iShNatlMuniBd MUB 107.89 –0.13 –2.6 High 2.2000 billions of U.S. dollars. Federal-funds rates are Tullett Prebon rates as of 5:30 p.m. ET. Futures on the
iShRussell1000Gwth IWF 154.79 0.67 14.9 VirtualBank /4 $10,000 0.15 CD Bank /4 $10,000 3.00 Low 1.8500 1.8700 1.9100 1.0000 DTCC GCF Repo Index are traded on NYSE Liffe US.
iShRussell1000 IWB 162.07 0.53 9.1 (877) 998-2265 (888) 201-8185 Bid 1.9100 1.9100 1.9200 1.0600 Sources: Federal Reserve; Bureau of Labor Statistics; DTCC; SIX Financial Information;
iShRussell1000Val IWD 128.12 0.42 3.0 Applied Bank /5 $1,000 0.05 VirtualBank /4 $10,000 2.81 Offer 1.9300 1.9300 2.1500 1.0700 Tullett Prebon Information, Ltd.
iShRussell2000Gwth IWO 216.62 0.76 16.0 (800) 616-4605 (877) 998-2265
iShRussell2000 IWM 170.27 0.42 11.7
134.67 7.1
M.Y. Safra Bank, FSB /NR $1,000 2.80
iShRussell2000Val IWN 0.06
iShRussell3000 IWV 172.79 0.56 9.2 (212) 652-7200
iShRussellMid-Cap
iShRussellMCValue
IWR
IWS
223.27
91.75
0.46
0.35
7.3
2.9
Three-month CD Five-year CD Dividend Changes
iShS&PMC400Growth IJK 236.08 0.49 9.4 CD Bank /4 $10,000 1.90 M.Y. Safra Bank, FSB /NR $1,000 3.25
iShS&P500Growth IVW 175.61 0.70 15.0 (888) 201-8185 (212) 652-7200 Dividend announcements from September 18.
iShS&P500Value IVE 117.23 0.38 2.6 VirtualBank /4 $10,000 1.70 First Internet Bank of Indiana /4 $1,000 3.20
iShUSPfdStk PFF 37.21 –0.11 –2.3 Amount Payable /
(877) 998-2265 (888) 873-3424 Company Symbol Yld % New/Old Frq Record
iShShortCpBd IGSB 51.76 –0.08 –1.0
iShShortTreaBd SHV 110.36 –0.01 0.1 TIAA Bank /3 $5,000 1.65 Goldman Sachs Bank USA /5 $500 3.10
iShTIPSBondETF TIP 110.55 –0.21 –3.1 (855) 228-6755 (855) 730-7283 Increased
iSh1-3YTreasuryBd SHY 83.04 –0.01 –1.0 Mesa Royalty Trust MTR 7.3 .0868 /.08502 M Oct31 /Sep28
iSh7-10YTreasuryBd IEF 101.12 –0.41 –4.2 High yield jumbos - Minimum is $100,000 MGM Growth Properties MGP 5.8 .4375 /.43 Q Oct15 /Sep28
iSh20+YTreasuryBd TLT 117.31 –1.05 –7.5
MS Non-Cum. pfd.Ser A MSpA 4.5 .2556 /.25278 Q Oct15 /Sep28 The News
iShRussellMCGrowth IWP 136.34 0.60 13.0 Money market and savings account Six-month CD
PIMCOEnhShMaturity
SPDR BlmBarcHYBd
MINT
JNK
101.53
35.98
–0.01
...
–0.0
–2.0 VirtualBank /4 2.01 VirtualBank /4 2.12
VICI Properties VICI 5.3 .2875 /.2625 Q Oct11 /Sep28
You Need.
(877) 998-2265 (877) 998-2265 Stocks
SPDR Gold
SchwabIntEquity
GLD
SCHF
113.44
33.29
–0.15
1.06
–8.3
–2.3 ableBanking,adivisionofNortheastBank/5 1.85 First Internet Bank of Indiana /4 2.07 Steven Madden SHOO 3:2 Oct11 /Oct12 Straight to
SchwabUS BrdMkt SCHB 70.55 0.51 9.3
(877) 505-1933 (888) 873-3424
SchwabUS Div
SchwabUS LC
SCHD
SCHX
53.69
69.65
0.51
0.53
4.9
9.2 Presidential Bank, FSB /3 1.75 Luana Savings Bank /5 2.06
Foreign
Canadian Pacific Railway CP 1.0 .4999 Q Oct29 /Sep28
Your Inbox.
SchwabUS SC SCHA 77.13 0.43 10.6 (800) 383-6266 (800) 666-2012
SPDR DJIA Tr DIA 262.91 0.74 6.3
Crescent Point Energy CPG 4.6 .02307 M Oct15 /Sep30
SPDR S&PMdCpTr MDY 371.45 0.44 7.5 One-month CD One-year CD GasLog Perp. Pfd. A GLOGpA 8.3 .54688 Q Oct01 /Sep28 Stay informed with
SPDR S&P 500 SPY 290.91 0.54 9.0 EH National Bank /4 0.85 M.Y. Safra Bank, FSB /NR 2.63 Kirkland Lake Gold KL 0.5 .02296 Q Oct12 /Sep28 email alerts and
SPDR S&P Div SDY 99.61 0.12 5.4 (888) 392-5265 (212) 652-7200 Lions Gate Ent Cl A LGF.A 1.6 .09 Q Nov08 /Sep30 newsletters.
TechSelectSector XLK 74.47 0.64 16.5
M.Y. Safra Bank, FSB /NR 0.30 First Internet Bank of Indiana /4 2.53 Lions Gate Ent Cl B LGF.B 1.7 .09 Q Nov08 /Sep30
UtilitiesSelSector XLU 54.38 –0.18 3.2
VanEckGoldMiner GDX 18.43 0.60 –20.7 (212) 652-7200 (888) 873-3424 Vermilion Energy VET 6.6 .17689 M Oct15 /Sep28
VangdInfoTech VGT 200.60 0.66 21.8 USAA /NR 0.22 VirtualBank /4 2.52 Sign Up Now
VangdSC Val VBR 141.42 0.26 6.5 (800) 583-8295 (877) 998-2265 KEY: A: annual; M: monthly; Q: quarterly; r: revised; SA: semiannual; S2:1: stock split and ratio; SO: wsj.com/newsletters
VangdSC Grwth VBK 188.33 0.71 17.1
VangdDivApp VIG 111.46 0.69 9.2 Two-month CD Two-year CD spin-off.
VangdFTSEDevMk VEA 43.19 1.03 –3.7 VirtualBank /4 0.15 VirtualBank /4 2.81
VangdFTSE EM VWO 40.74 0.79 –11.3
(877) 998-2265 (877) 998-2265
VangdFTSE Europe VGK 56.37 0.54 –4.7
Applied Bank /5 0.05 M.Y. Safra Bank, FSB /NR 2.80

Private Wine
VangdFinls VFH 71.04 0.28 1.4
VangdFTSEAWxUS VEU 51.86 1.05 –5.2 (800) 616-4605 (212) 652-7200
VangdGrowth VUG 159.55 0.70 13.4 Citizens Trust Bank /4 0.01 ableBanking,adivisionofNortheastBank/5 2.80
VangdHlthCr VHT 177.83 0.61 15.4 (404) 659-5959 (888) 426-2253
VangdHiDiv VYM 88.34 0.34 3.2

Collection for sale.

VangdIntermBd BIV 80.37 –0.30 –4.1 Three-month CD Five-year CD
VangdIntrCorpBd VCIT 83.40 –0.20 –4.6
Luana Savings Bank /5 1.91 M.Y. Safra Bank, FSB /NR 3.25
VangdLC VV 133.73 0.53 9.1
VangdMC VO 165.88 0.52 7.2
(800) 666-2012 (212) 652-7200
VangdMC Val VOE 115.15 0.51 3.2 VirtualBank /4 1.70 First Internet Bank of Indiana /4 3.20
VangdRealEst VNQ 83.01 –0.48 0.0 (877) 998-2265 (888) 873-3424
VangdS&P500 VOO 267.30 0.55 9.0 TIAA Bank /3 1.65 VirtualBank /4 3.05
VangdST Bond
VangdSTCpBd
VangdSC
BSV
VCSH
VB
77.97
78.09
164.31
–0.10
–0.04
0.50
–1.4
–1.5
11.2
(855) 228-6755 (877) 998-2265
Notes: Accounts are federally insured up to $250,000 per person effective Oct. 3, 2008. Yields
First Growth’s and more.
VangdTotalBd BND 78.57 –0.23 –3.7 are based on method of compounding and rate stated for the lowest required opening deposit to

2brothers@protonmail.com
VangdTotIntlBd BNDX 54.63 –0.02 0.5
53.82 –5.3
earn interest. CD figures are for fixed rates only. MMA: Allows six (6) third-party transfers per
VangdTotIntlStk VXUS 1.01 © 2018 Dow Jones & Co. Inc.
VangdTotalStk VTI 150.13 0.54 9.4 month, three (3) of which may be checks. Rates are subject to change. All rights reserved. 1DJ6120
VangdTotlWrld VT 75.90 0.70 2.2 Source: Bankrate.com, a publication of Bankrate, Inc., North Palm Beach, FL 33408
VangdValue VTV 111.98 0.40 5.3 Internet: www.bankrate.com
 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.

B12 | Wednesday, September 19, 2018 NY THE WALL STREET JOURNAL.

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$  © 2018 Dow Jones & Company, Inc.
projections available with signed NDA. Email For additional information, call Ken at % 
 %
$%&'# $ All Rights Reserved.
sweintz@sbwventuresinc.com 714-398-9409. Principals only. )
!()*+,# "

     6 © 201 Dow Jones & Company, Inc.
Qualified investors only, no brokers. All Rights Reserved.
 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.

THE WALL STREET JOURNAL. Wednesday, September 19, 2018 | B13

MARKETS DIGEST
EQUITIES

Dow Jones Industrial Average S&P 500 Index Nasdaq Composite Index
Last Year ago Last Year ago Last Year ago
26246.96 s 184.84, or 0.71% Trailing P/E ratio 23.72 20.47 2904.31 s 15.51, or 0.54% Trailing P/E ratio * 24.40 24.11 7956.11 s 60.32, or 0.76% Trailing P/E ratio * 26.15 26.03
High, low, open and close for each P/E estimate * 16.89 18.80 High, low, open and close for each P/E estimate * 17.87 19.10 High, low, open and close for each P/E estimate * 21.55 21.67
trading day of the past three months. Dividend yield 2.10 2.30 trading day of the past three months. Dividend yield 1.81 1.99 trading day of the past three months. Dividend yield 0.96 1.10
All-time high 26616.71, 01/26/18 All-time high 2914.04, 08/29/18 All-time high: 8109.69, 08/29/18

Current divisor 0.14748071991788

26500 2900 8250

26000 2850 8075

25500 2800 7900

25000 2750 7725

Session high
DOWN UP 7550
24500 2700
t

Session open Close

65-day moving average Close Open 65-day moving average
t

65-day moving average 7375

24000 2650
Session low
Bars measure the point change from session's open
23500 2600 7200
June July Aug. Sept. June July Aug. Sept. June July Aug. Sept.
*Weekly P/E data based on as-reported earnings from Birinyi Associates Inc.

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

Latest 52-Week % chg Most-active and biggest movers among NYSE, NYSE Arca, NYSE Amer. Volume, Advancers, Decliners
High Low Close Net chg % chg High Low % chg YTD 3-yr. ann. and Nasdaq issues from 4 p.m. to 6:30 p.m. ET as reported by electronic NYSE NYSE Amer.
Dow Jones trading services, securities dealers and regional exchanges. Minimum Total volume* 707,203,187 10,135,096
Industrial Average 26317.34 26076.21 26246.96 184.84 0.71 26616.71 22284.32 17.3 6.2 17.0 share price of $2 and minimum after-hours volume of 50,000 shares. Adv. volume* 453,723,489 6,573,056
Transportation Avg 11545.50 11395.58 11514.94 46.21 0.40 11570.84 9440.87 21.1 8.5 12.7 Most-active issues in late trading Decl. volume* 236,270,762 3,276,607
Utility Average 740.79 735.00 738.39 -1.11 -0.15 774.47 647.90 0.2 2.1 9.3 Volume After Hours Issues traded 3,072 316
Company Symbol (000) Last Net chg % chg High Low Advances 1,653 164
Total Stock Market 30212.58 30010.37 30144.30 155.38 0.52 30290.78 25876.47 16.2 8.9 13.7
Ford Motor F 30,618.7 9.60 0.02 0.21 9.61 9.57 Declines 1,317 127
Barron's 400 777.54 773.60 776.00 2.29 0.30 786.73 658.03 17.9 9.2 13.8
SPDR S&P 500 SPY 10,093.4 291.12 0.21 0.07 291.47 289.32 Unchanged 102 25
Nasdaq Stock Market VanEck Vectors Gold Miner GDX 7,279.6 18.43 ... unch. 18.47 18.32 New highs 90 2
Nasdaq Composite 7986.10 7901.01 7956.11 60.32 0.76 8109.69 6370.59 23.1 15.2 18.1 WisdomTree Japan Hdg Eqty DXJ 2,654.2 56.71 ... unch. 56.71 56.50 New lows 114 17
Nasdaq 100 7531.20 7436.53 59.67 7660.18 5867.35 17.2 Closing tick 108 0
7494.40 0.80 25.1 20.1 Freeport-McMoRan FCX 2,549.3 14.01 ... unch. 14.11 13.98
Closing Arms† 0.67 0.43
AT&T T 2,510.0 33.75 0.03 0.09 33.80 33.60
S&P Block trades* 6,276 111
Ambev ADR ABEV 2,433.5 4.59 0.03 0.66 4.59 4.54

.
500 Index 2911.17 2890.43 2904.31 15.51 0.54 2914.04 2496.66 15.9 8.6 14.0 Nasdaq NYSE Arca
Microsoft MSFT 1,752.3 113.21 ... unch. 113.44 113.10
2040.58 2026.42 8.24 2050.23 1761.52 7.2

ly
MidCap 400 2036.73 0.41 15.6 13.0 Total volume*2,298,947,223 202,832,200
SmallCap 600 1081.01 1075.87 1078.00 2.79 0.26 1098.36 865.98 24.5 15.1 17.1 Percentage gainers… Adv. volume*1,316,421,663 144,197,014
Decl. volume* 954,201,731 55,483,839
Other Indexes Command Security MOC 54.6 2.70 0.80 42.11 2.80 1.90
Issues traded 3,177 1,339
Stein Mart SMRT 58.4 2.20 0.23 11.68 2.32 1.93
Russell 2000
NYSE Composite
Value Line
1714.92

587.80
1704.22
13112.38 13038.66 13091.98
584.17
1710.97

586.91
7.42
60.07
2.74
0.44
0.46
on
0.47
1740.75

593.57
1440.40
13637.02 12127.92
527.80
18.8
7.9
11.2
11.4
2.2
4.4
13.7
9.3
8.6
Gold Field ADR
Viking Therapeutics
GFI
VKTX
247.2
213.9
2.49
19.98
0.07
0.52
2.89
2.67
2.49
20.20
2.41
19.30
Advances
Declines
Unchanged
1,762
1,242
173
967
346
26
NYSE Arca Biotech 5149.10 5068.33 5131.52 67.36 1.33 5342.46 4045.25 23.9 21.5 8.7
Tilray TLRY 642.0 158.30 3.32 2.14 164.00 152.00 New highs 80 44
us l,

New lows 83 33
NYSE Arca Pharma 588.98 583.79 587.31 2.01 0.34 593.12 516.32 7.6 7.8 1.7 ...And losers
Closing tick 196 1
KBW Bank 107.43 106.75 107.13 0.01 0.01 116.52 95.86 11.8 0.4 15.5 ProSharesUltVIXST UVXY 136.8 39.08 -0.72 -1.81 39.90 39.07 1.03 1.22
al a

Closing Arms†
e
PHLX§ Gold/Silver 65.81 64.85 65.40 0.46 0.70 92.08 61.92 -25.0 -23.3 10.3 VS 2x VIX Short Term TVIX 156.3 28.65 -0.49 -1.68 29.28 28.57 Block trades* 11,159 1,196
PHLX§ Oil Service 142.14 140.62 141.17 1.99 1.43 170.18 127.61 5.3 -5.6 -5.9 Noble Corp NE 205.0 6.05 -0.10 -1.63 6.16 6.01 * Primary market NYSE, NYSE American NYSE Arca only.
ci on

PHLX§ Semiconductor 1377.04 1363.52 1368.87 11.39 0.84 1445.90 1126.40 17.5 9.2 30.9 Textron TXT 65.6 70.42 -1.14 -1.59 71.58 70.04 †(TRIN) A comparison of the number of advancing and declining
Cboe Volatility 13.48 12.56 -0.89 -6.51 37.32 9.14 15.9 -16.9 issues with the volume of shares rising and falling. An
12.79 25.6 Canopy Growth CGC 241.2 51.15 -0.74 -1.43 52.43 50.52 Arms of less than 1 indicates buying demand; above 1

Nasdaq PHLX Sources: SIX Financial Information; Dow Jones Market Data indicates selling pressure.

International Stock Indexes Percentage Gainers... Percentage Losers

er rs

Latest YTD
Region/Country Index Close Net chg % chg % chg Latest Session 52-Week Latest Session 52-Week
Company Symbol Close Net chg % chg High Low % chg Company Symbol Close Net chg % chg High Low % chg
World The Global Dow 3093.70 16.04 0.52 0.2 Viking Therapeutics VKTX 19.46 9.07 87.30 24.00 1.18 1521.7 SAExploration Holdings SAEX 5.98 -2.12 -26.17 73.80 5.40 -88.1
m e

DJ Global Index 401.81 2.05 0.51 1.2 Realm Therapeutics ADR RLM 6.40 2.80 77.78 13.00 3.34 ... China Internet Nationwide CIFS 9.00 -2.20 -19.64 66.10 7.99 -40.1
DJ Global ex U.S. 249.92 1.27 0.51 –6.3 Tilray TLRY 154.98 34.79 28.95 155.10 20.10 ... Cool Holdings AWSM 5.87 -1.21 -17.09 13.45 2.70 -35.3
Avenue Therapeutics ATXI 3.53 0.78 28.36 5.90 2.38 -36.3 Constellation Pharm CNST 6.50 -1.15 -15.03 12.21 6.40 ...
m rp

Americas DJ Americas 690.08 3.87 0.56 7.4

Brazil Sao Paulo Bovespa 78313.97 1525.11 1.99 2.5 Bridgford Foods BRID 16.95 3.25 23.72 21.55 11.76 42.1 PLx Pharma PLXP 4.35 -0.75 -14.71 9.41 3.05 -32.0
Canada S&P/TSX Comp 16196.04 113.73 0.71 –0.1 New Age Beverages NBEV 2.82 0.52 22.61 4.24 1.30 -23.6 Unity Biotechnology UBX 19.71 -3.26 -14.19 24.56 12.75 ...
Mexico S&P/BMV IPC 49661.83 263.26 0.53 0.6 Aileron Therapeutics ALRN 3.33 0.54 19.35 15.48 1.98 -71.7 Altimmune ALT 4.27 -0.62 -12.68 94.80 4.27 -94.1
Chile Santiago IPSA 3960.97 … Closed –5.9 Digital Ally DGLY 4.25 0.65 18.06 4.30 1.70 51.8 Apogee Enterprises APOG 42.48 -5.74 -11.90 51.33 37.24 -4.3
0.11 Oasmia Pharmaceutical ADR OASM 3.05 0.45 17.31 3.17 0.80 190.5 VIVUS VVUS 4.67 -0.62 -11.72 10.10 3.33 -52.7
EMEA Stoxx Europe 600 378.73 0.42 –2.7
co Fo

0.40 Pyxus International PYX 21.35 3.10 16.99 30.70 10.25 95.9 Obalon Therapeutics OBLN 2.59 -0.34 -11.60 10.25 1.46 -73.9
Eurozone Euro Stoxx 376.43 1.51 –2.4
Belgium Bel-20 3730.87 16.07 0.43 –6.2 BioHiTech Global BHTG 3.62 0.52 16.77 7.15 2.68 -48.2 VelocityShares 3x DGAZ 21.61 -2.78 -11.40 42.92 17.14 2.3
Denmark OMX Copenhagen 901.56 1.42 0.16 –2.8 Nexeo Solutions NXEO 11.49 1.48 14.79 11.55 6.99 60.3 Xunlei ADR XNET 8.17 -0.99 -10.81 27.00 4.16 76.5
France CAC 40 5363.79 14.92 0.28 1.0 Level Brands LEVB 3.89 0.50 14.75 5.88 2.74 ... Ladenburg Thalmann LTS 2.50 -0.30 -10.71 3.84 2.37 -6.0
Germany DAX 12157.67 61.26 0.51 –5.9 SunPower SPWR 7.55 0.97 14.74 10.00 6.36 -9.8 Twin Disc TWIN 23.30 -2.67 -10.28 31.95 17.78 29.6
Closed 9.9 Vaccinex VCNX 10.05 1.26 14.33 12.00 8.56 ... iClick Interactive ADR ICLK 4.35 -0.47 -9.75 11.40 4.33 ...
Israel Tel Aviv 1659.88 …
Italy FTSE MIB 21228.23 116.83 0.55 –2.9
Netherlands AEX 543.06 2.21 0.41 –0.3
Most Active Stocks Volume Movers Ranked by change from 65-day average*
Russia RTS Index 1123.03 23.53 2.14 –2.7 Volume % chg from Latest Session 52-Week Volume % chg from Latest Session 52-Week
Company Symbol (000) 65-day avg Close % chg High Low Company Symbol (000) 65-day avg Close % chg High Low
South Africa FTSE/JSE All-Share 56381.30 82.65 0.15 –5.2
Spain IBEX 35 9447.50 42.90 0.46 –5.9 Advanced Micro Devices AMD 175,324 78.1 31.93 -1.54 34.14 9.04 Nexeo Solutions NXEO 8,640 3465 11.49 14.79 11.55 6.99
Helios Matheson Analy HMNY 135,098 88.5 0.01 -20.00 9714.38 0.01 Thunder Bridge Acqn TBRG 3,029 2611 9.70 ... 9.77 9.60
Sweden OMX Stockholm 604.14 –4.45 –0.73 6.2
Switzerland Swiss Market 8915.87 –20.84 –0.23 –5.0 SPDR S&P 500 SPY 51,776 -18.3 290.91 0.54 291.74 248.08 JPMorgan Div Return US MC JPME 152 2348 68.11 0.26 68.41 60.16
n-

0.57 –17.7 Viking Therapeutics VKTX 51,435 2198.6 19.46 87.30 24.00 1.18 ProShrs Ultra 7-10 Yr Tr UST 462 2234 52.66 -1.08 59.24 51.89
Turkey BIST 100 94886.87 539.21
–5.0
iShares MSCI Emg Markets EEM 50,757 -28.1 41.98 0.96 52.08 40.63 Viking Therapeutics VKTX 51,435 2199 19.46 87.30 24.00 1.18
U.K. FTSE 100 7300.23 –1.87 –0.03
U.K. FTSE 250 20458.27 83.88 0.41 –1.3 Vital Therapies VTL 49,847 2797.7 0.43 70.09 9.75 0.25 Mexico Equity Income MXE 130 2070 12.08 7.52 13.05 9.50
New Age Beverages NBEV 49,584 3930.8 2.82 22.61 4.24 1.30 iPic Entertainment IPIC 185 1670 6.78 -4.45 17.00 5.91
no

Asia-Pacific
Bank of America BAC 49,341 -11.8 30.21 -0.23 33.05 24.58 ETRACS Monthly Pay 2xLev MRRL 360 1588 15.80 -0.65 19.15 11.51
Australia S&P/ASX 200 6161.50 –23.50 –0.38 1.6
General Electric GE 42,153 -29.2 12.66 -0.31 25.21 11.94 Direxion Dev Mk Bear 3x DPK 442 1401 12.67 -3.50 14.22 10.08
China Shanghai Composite 2699.95 48.16 1.82 –18.4
NIO ADR NIO 41,476 -63.5 7.68 -9.65 13.80 5.35 Presidio PSDO 2,082 1154 15.33 -6.47 19.74 11.97
Hong Kong Hang Seng 27084.66 151.81 0.56 –9.5
* Volumes of 100,000 shares or more are rounded to the nearest thousand * Common stocks priced at $2 a share or more with an average volume over 65 trading days of at least
India S&P BSE Sensex 37290.67 –294.84 –0.78 9.5 5,000 shares =Has traded fewer than 65 days
Japan Nikkei Stock Avg 23420.54 325.87 1.41 2.9
Singapore Straits Times 3139.34 –2.06 –0.07 –7.7 Track the Markets
South Korea Kospi 2308.98 5.97 0.26 –6.4 Compare the performance of selected CURRENCIES & COMMODITIES
Taiwan TAIEX 10760.21 –68.40 –0.63 1.1 global stock indexes, bond ETFs,
Thailand SET 1744.42 26.03 1.51 –0.5
currencies and commodities at Currencies
WSJ.com/TrackTheMarkets
Sources: SIX Financial Information; Dow Jones Market Data
U.S.-dollar foreign-exchange rates in late New York trading
US$vs, US$vs,
Tues YTDchg Tues YTDchg
CREDIT MARKETS Country/currency in US$ per US$ (%) Country/currency in US$ per US$ (%)
Americas Europe
Argentina peso .0251 39.7633 113.7 Czech Rep. koruna .04588 21.797 2.4
Consumer Rates and Returns to Investor Benchmark
Treasury Yields
yield curve Forex Race Brazil real .2403 4.1621 25.7 Denmark krone .1564 6.3942 3.0

U.S. consumer rates Selected rates and

Yield toRates
maturity of current bills, Yen, euro vs. dollar; dollar vs. Canada dollar
Chile peso
.7708 1.2974 3.2
.001462 683.90 11.1
Euro area euro
Hungary forint
1.1670 .8569
.003602 277.60
2.9
7.2
notes and bonds major U.S. trading partners Ecuador US dollar 1 1 unch
Five-year ARM, Rate Iceland krona .009116 109.70 5.9
A consumer rate against its Mexico peso .0532 18.8079 –4.4 Norway krone .1226 8.1594 –0.6
benchmark over the past year 4.00% Uruguay peso .03017 33.1500 15.1 Poland zloty .2720 3.6759 5.7
Bankrate.com avg†: 4.66% 8% Venezuela b. fuerte .000004248519.9501 2402951.2 Russia ruble .01485 67.350 16.8
5-year adjustable- StateDepartmentFederalCreditUnion 3.25% Yen
s

Tuesday 3.00 Asia-Pacific Sweden krona .1123 8.9084 8.8

rate mortgage 5.00% Alexandria, VA 800-296-8882 t 4
Australian dollar .7218 1.3854 8.2 Switzerland franc 1.0369 .9644 –1.0
(ARM) t
Foxboro Federal Savings 3.50% China yuan .1457 6.8615 5.5 Turkey lira .1566 6.3850 68.3
4.00 2.00 0 Hong Kong dollar .1275 7.8427 Ukraine hryvnia .0355 28.1450 ...
Foxboro, MA 877-369-3331 0.4
5-year Treasury India rupee .01375 72.708 13.8 UK pound 1.3147 .7606 2.8
note yield 3.00 Mansfield Co-operative Bank 3.63%
t
1.00 Indonesia rupiah .0000672 14882 10.4
t –4 s Middle East/Africa
Mansfield, MA 508-339-2901 One year ago Euro Japan yen .008900 112.36 –0.3
s

WSJ Dollar index Bahrain dinar 2.6522 .3770 –0.02

2.00 0.00 Kazakhstan tenge .002725 366.99 10.3
Sebonic Financial 3.75% –8 Macau pataca .1238 8.0765 0.4
Egypt pound .0558 17.9155 0.8
Charlotte, NC 877-721-6763 1 3 6 1 2 3 5 710 30 Israel shekel .2786 3.5894 3.2
1.00 2017 2018 Malaysia ringgit .2417 4.1376 1.9
month(s) years Kuwait dinar 3.3030 .3028 0.4
Star One Credit Union 3.75% New Zealand dollar .6584 1.5188 7.7
O N D J FMAM J J A S Oman sul rial 2.5970 .3851 0.03
maturity Pakistan rupee .00812 123.125 11.3
2017 2018 Sunnyvale, CA 408-742-2801 Qatar rial .2749 3.638 –0.3
Philippines peso .0185 54.099 8.3
Sources: Ryan ALM; Tullett Prebon; Dow Jones Market Data
Singapore dollar .7295 1.3708 2.5 Saudi Arabia riyal .2666 3.7506 0.01
Yield/Rate (%) 52-Week Range (%) 3-yr chg South Africa rand .0671 14.8934 20.5
South Korea won .0008906 1122.82 5.2
Interest rate Last (l)Week ago Low 0 2 4 6 8 High (pct pts)
Corporate Borrowing Rates and Yields Sri Lanka rupee .0060299 165.84 8.0
Close Net Chg % Chg YTD%Chg
Federal-funds rate target 1.75-2.00 1.75-2.00 1.00 l 1.75 1.75 Yield (%) 52-Week Total Return (%) Taiwan dollar .03247 30.794 3.8
Bond total return index Close Last Week ago High Low 52-wk 3-yr Thailand baht .03070 32.570 –0.1 WSJ Dollar Index 89.42 0.09 0.10 4.00
Prime rate* 5.00 5.00 4.25 l 5.00 1.75
Vietnam dong .00004295 23282 2.5 Sources: Tullett Prebon, Dow Jones Market Data
Libor, 3-month 2.34 2.33 1.32 l 2.37 2.02 Treasury, Ryan ALM 1430.102 2.977 2.913 2.977 1.976 –2.470 0.301
Money market, annual yield 0.47 0.47 0.25 l 0.53 0.17 10-yr Treasury, Ryan ALM 1666.893 3.048 2.979 3.109 2.220 –4.530 –0.656
Five-year CD, annual yield 1.87 1.86 1.43 l 1.87 0.43 DJ Corporate n.a. n.a. 4.140 n.a. n.a. n.a. n.a. Commodities Tuesday 52-Week YTD
30-year mortgage, fixed† 4.76 4.62 3.84 l 4.76 0.84 Aggregate, Barclays Capital 1910.250 3.450 3.410 3.450 2.500 –1.528 1.293 Pricing trends on someClose
raw materials, or commodities
Net chg % Chg High Low % Chg % chg
15-year mortgage, fixed† 4.10 4.06 3.09 l 4.14 1.00
High Yield 100, Merrill Lynch 2932.194 5.815 5.974 6.319 4.977 2.813 5.736 DJ Commodity 606.81 4.09 0.68 667.35 579.76 3.66 -2.97
Jumbo mortgages, $424,100-plus† 5.12 4.83 4.21 l 5.12 0.60
Fixed-Rate MBS, Barclays 1963.880 3.560 3.540 3.580 2.760 –1.160 0.952 TR/CC CRB Index 190.56 0.92 0.48 206.38 180.90 4.37 -1.70
Five-year adj mortgage (ARM)† 4.66 4.46 3.33 l 4.78 1.26
Muni Master, Merrill 520.038 2.657 2.590 2.657 1.824 –0.472 2.014 Crude oil, $ per barrel 69.85 0.94 1.36 74.15 49.29 41.17 15.61
New-car loan, 48-month 4.43 4.43 2.99 l 4.52 1.26
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 767.753 6.877 7.003 7.003 5.371 –4.661 4.274 Natural gas, $/MMBtu 2.933 0.119 4.23 3.63 2.55 -6.05 -0.68
banks.† Excludes closing costs. Gold, $ per troy oz. 1196.80 -2.90 -0.24 1362.40 1176.20 -8.38 -8.38
Sources: SIX Financial Information; Dow Jones Market Data; Bankrate.com Sources: J.P. Morgan; Ryan ALM; S&P Dow Jones Indices; Barclays Capital; Merrill Lynch

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B14 | Wednesday, September 19, 2018
SEC Commissioner Seeks Market Curbs
BY GRETCHEN MORGENSON
A top securities regulator is
calling for his agency to beef
up its oversight of the nation’s
stock exchanges to root out
conflicts and curb rising fees
that he says harm investors.
In a policy speech to be de-
livered Wednesday, Robert J.
Jackson Jr., a Democratic com-
missioner at the Securities and
Exchange Commission, will al-
lege that the SEC has “stood
on the sidelines” as the New
York Stock Exchange, Nasdaq
Inc. and other market opera-
tors have significantly boosted
their profits while raising in-
vestors’ costs, according to a
copy of his remarks.
Mr. Jackson will call on the
SEC to ensure “that the ex-
changes’ actions do not unduly
burden competition and are
QILAI SHEN/BLOOMBERG NEWS
A Haidilao restaurant in Shanghai. Diners at these eateries cook meat and vegetables in pots of clear or spicy soup.
Hot-Pot Chain Raises $963 Million
BY JOANNE CHIU
Investors lined up for a
taste of one of the hottest res-
taurant stock sales in years,
enabling the operator of a
popular Chinese dining chain
to raise $963 million ahead of
its listing in Hong Kong.
Haidilao International
Holding Ltd., which operates
hundreds of hot-pot restau-
rants in China and abroad, on
Tuesday priced its initial pub-
lic offering at the top end of
its indicative price range, ac-
cording to people familiar
with the matter.
An international tranche of
the offering was more than 10
times oversubscribed by insti-
tutional investors, the people
added.
The IPO price of 17.80 Hong
Kong dollars ($2.27) a share
gives Haidilao a market capi-
talization of $12 billion, bigger
no
Crypto Exchanges
Draw New Warning
BY PAUL VIGNA
A number of cryptocur-
rency exchanges lack basic
consumer protections and are
vulnerable to exploitation by
market manipulators, the New
York attorney general’s office
said in a report Tuesday.
The report, the result of a
monthslong investigation,
found that many exchanges
lack appropriate safeguards,
putting consumers at risk. Ad-
ditionally, the attorney gen-
eral’s office referred three ex-
changes to the New York
Department of Financial Ser-
vices for possibly operating
unlawfully in New York.
“Many virtual currency
platforms lack the necessary
policies and procedures to en-
sure the fairness, integrity,
and security of their ex-
changes,” state Attorney Gen-
eral Barbara Underwood said
in a statement.
Former New York Attorney
General Eric Schneiderman
started the Virtual Markets In-
tegrity Initiative program in
April and requested informa-
tion from a number of ex-
changes specializing in bitcoin
and other cryptocurrencies.
Ten exchanges complied with
requests for information and
four didn’t, arguing they
fair and reasonable.”
All of the active U.S. stock
exchanges are for-profit enter-
prises, a reversal of the way
the stock market operated for
nearly two centuries. The
NYSE, for instance, was a
member-owned nonprofit until
2006 and was later acquired
by Intercontinental Exchange
Inc., an Atlanta-based ex-
change operator. Critics charge
that for-profit exchanges ex-
ploit their position to extract
greater fees from traders.
To gain access to the fastest
information, banks and broker-
age firms must pay the ex-
changes to connect to their
data feeds. These costs have
jumped in recent years, said
Mr. Jackson, one of two Demo-
crats on the five-person SEC.
Between 2013 and 2018, for
example, connectivity fees
on
us l,
al a
e
ci on
er rs
than Domino’s Pizza Inc., the
m e
sixth-most-valuable company
in the U.S. S&P 1500 restau-
rant subindex. Haidilao could
m rp
end up raising a total of $1.11
billion if an option to sell
more stock is exercised after
the company goes public on
Sept. 26. The listing is spon-
co Fo
sored by CMB International
Corp. and Goldman Sachs
Group Inc.
Haidilao’s market capital-
ization is just slightly below
that of Yum China Holdings
Inc.’s $12.77 billion. The latter
is China’s largest restaurant
operator, with more than
8,000 Pizza Hut, KFC and Taco
Bell outlets across China and
annual revenue more than four
times that of Haidilao.
The strong investor demand
n-
for Haidilao’s shares reflected
optimism about the chain’s
growth potential and expecta-
tions that it can capture a
didn’t operate in the state. The
attorney general’s office, how-
ever, concluded that three of
those exchanges—Kraken, Bi-
nance, and Gate.io—allow
trading from New York cus-
tomers.
Those three exchanges
couldn’t immediately be
reached for comment.
“The attorney general’s re-
port underscores the value of
strong state regulation and
consumer protections,” said
Maria Vullo, the superintend-
ent of the state Department of
Financial Services. “We look
forward to reviewing the in-
formation and referrals pro-
vided by the attorney general.”
The question of market in-
tegrity has become one of the
key issues surrounding the de-
velopment of cryptocurren-
cies.
The U.S. Commodity Fu-
tures Trading Commission is
investigating potential market
manipulation, as is the U.S.
Justice Department.
The Securities and Ex-
change Commission has con-
sistently rejected applications
for bitcoin-based exchange-
traded funds, concluding there
isn’t enough transparency to
be confident that cryptocur-
rency prices aren’t being ma-
nipulated.
BUSINESS & FINANCE
more than tripled on the Bats
Global Markets exchanges, he
said. A spokeswoman for the
Cboe Global Markets Inc.,
which acquired Bats in 2017,
said, “Our connectivity offer-
ing has been significantly en-
hanced since the beginning of
2013. Then, a connection,
which was offered free, cov-
ered two equity markets, and
one new options exchange. To-
day, that same connection pro-
vides access to four equity ex-
changes and three options
exchanges, which represent a
major share of daily trading
activity in those markets.”
Mike Williams, executive di-
rector of the Equity Markets
Association, which represents
both the NYSE and Nas-
daq, said, “U.S. exchanges are
the most heavily regulated,
transparent and trusted par-
larger share of consumer
spending in China.
Haidilao’s restaurants,
where diners cook meat and
vegetables in pots of simmer-
ing clear or spicy soup, are
known for also offering ser-
vices such as manicures, mas-
sages and child-care facilities,
which have become a draw for
patrons and repeat customers.
Xiang Ji, president of finan-
cial firm New Age Financial
Group Ltd. in Hong Kong, said
he subscribed to Haidilao’s IPO
because the restaurant chain
offers an “exceptional dining
experience” that stands out
from other eateries. He added
he regularly takes his family
and business contacts to Haid-
ilao’s restaurants in Hong
Kong and Shenzhen.
Zhang Yong, Haidilao’s 47-
year-old chairman and co-
founder, said earlier this
month that there is still signif-
Offer Shows
Appetite
For Risk
Continued from page B1
had increased the total size of
the loans by $1.25 billion and
shrunk the size of the bonds
by the same amount. In a ges-
ture to investors, it also ad-
justed the terms of its loans to
reduce the amount of future
debt it can issue relative to its
initial proposal.
Institutional investors led
by Blackstone are paying $17
billion to take the 55% stake in
Refinitiv, which serves banks,
money managers and other fi-
nancial institutions. Thomson
Reuters will retain the remain-
ing 45%.
Excluding $650 million of
annual projected cost cuts, Re-
finitiv’s debt will amount to a
little more than seven times
its adjusted earnings before
interest, taxes, depreciation
and amortization, or Ebitda,
according to the research firm
CreditSights. Some investors
estimate leverage is above
eight times Ebitda.
Lending guidelines issued
by U.S. regulators in 2013 tried
to discourage banks from un-
derwriting deals where debt
totaled more than six times
Ebitda. Regulators, however,
have softened their stance
ticipants in our national equity
trading infrastructure, and to-
day provide more valuable, ef-
ficient and resilient trading
and data services, at the low-
est relative cost to investors,
Robert J.
Jackson Jr. will
call on the SEC
to ensure
exchanges do
not burden
competition.
than at any time in history.”
As a single minority com-
missioner, Mr. Jackson doesn’t
hold great sway on SEC policy
at the moment. But his view
echoes criticism from some
market participants and others
about market-data sales.
icant room for the chain to ex-
pand in China, and it plans to
set up more overseas outposts
in regions that have large Chi-
nese populations or are popu-
lar travel destinations for Chi-
nese tourists.
Haidilao operates 363 res-
taurants, more than 90% of
which are in mainland China,
with the rest in Taiwan, Hong
Kong, Singapore, South Korea,
Japan and the U.S.
It expects to reach close to
500 outlets this year and will
fund its expansion with its IPO
proceeds.
The company’s net profit
rose 22% in 2017 to 1.19 billion
yuan ($173.5 million), while
revenue climbed 36% to 10.64
billion yuan.
Choonshik Yi, a fund man-
ager at UBP Asset Manage-
ment Asia Ltd., said Haidilao’s
growth rate is similar to that
of new-economy companies.
Debt Demand
The average yield gap between junk bonds and Treasurys is near an
11-year low.
Average yield gap between junk bonds and Treasurys
Option-adjusted spread
20 pct. pts. Recession
15
10
5 buyouts were issued by com-
0 tios of at least seven times, the
2005 ’10
Largest postcrisis leveraged debt sales*
Altice France
Bausch Health†
Kraft Heinz Food
Refinitiv
Western Digital
*Includes revolving credit lines and broadly syndicated bonds and loans
†Formerly known as Valeant Pharmaceuticals International
Sources: Bloomberg Barclays (spread); LCD, a unit of S&P Global Market Intelligence
(leveraged debt sales)
over the past year, emphasizing
that the guidelines are non-
binding and suggesting they
would ease efforts to keep
banks from straying from them.
High leverage wasn’t the
only way Refinitiv has tested
investors. Under the proposed
terms of its bonds, the com-
pany could pay dividends to
its owners even if it came un-
der severe financial distress, a
provision that the research
firm Covenant Review de-
* *
“It is very important that
[stock exchanges] be regulated
effectively,” said Ken Bertsch,
executive director of the Coun-
cil of Institutional Investors.
Since technological ad-
vances have pushed down the
prices of connectivity in other
arenas, Mr. Jackson questioned
why costs are rising for inves-
tors. Still, the SEC has ap-
proved every fee increase for
connectivity to the nation’s ex-
changes, he said. In the future,
he said, the agency should ap-
prove the increases only if the
exchanges can justify them.
Mr. Jackson’s speech is to be
delivered at an event co-spon-
sored by George Mason Univer-
sity Law & Economics Center
in Arlington, Va., and the
Healthy Markets Association,
an investor-oriented nonprofit.
In it, he also will highlight
Marsh & McLennan
To Buy U.K. Insurer
In $5.66 Billion Deal
BY PHILIP GEORGIADIS
AND ADAM CLARK
LONDON—Marsh & McLen-
nan Cos. has agreed to a £4.3
billion ($5.66 billion) deal to
.
buy U.K.-based Jardine Lloyd
ly
Thompson Group PLC, forming
a global insurance broker with
$17 billion in annual revenue.
The deal would allow Marsh
& McLennan to tap into Jardine
Lloyd Thompson’s exposure to
high-growth emerging markets,
as the insurance industry un-
dergoes a wave of consolida-
tion.
Many global insurers are
looking beyond their well-in-
sured home markets for
growth, and Marsh & McLen-
nan said the deal will
strengthen its specialty risk-
broking operations and expand
its global reinsurance network,
bolstering its position in
growth markets in Asia and
Latin America.
While Marsh & McLennan
derives 10% of its revenue
from the fast-growing Asia Pa-
cific region, Jardine Lloyd
Thompson has far more expo-
sure in a region that accounts
for more than a quarter of its
revenue, according to broker-
age firm Olive Tree Financial.
The deal is one of the most
significant in the insurance-
brokering sector since the $18
billion tie-up between Willis
Group Holdings PLC and Tow-
ers Watson & Co. in 2015. Sev-
eral deals have been an-
nounced this year as insurers
grapple with changing regula-
tory requirements, falling
prices and shifting customer
behavior.
Earlier this year, British in-
surer Prudential PLC split it-
self into two, allowing one of
its arms to chase high-growth
emerging markets, while
France’s AXA SA paid more
’15
$17.42B April 2014
15.28 March 2015
14.60 March 2013
14.25 September 2018
13.21 March 2015
THE WALL STREET JOURNAL.
scribed as “wildly off market.”
At the same time, Refinitiv
boasts a relatively stable base
of customers and generated
free cash flow of more than $1
billion over the 12-month pe-
riod ended June 30, according
to CreditSights. That number
should go up if Blackstone can
cut costs and if it can use its
connections on Wall Street to
reach new customers, inves-
tors said. That, in turn, should
allow it to reduce leverage.
THE WALL STREET JOURNAL.
problems with the two-tiered
system for stock-price data—a
slow, relatively cheap public
feed and lightning-fast private
feeds that traders can access
for a steeper fee. Those who
pay up for the private feed can
trade ahead of investors using
public data, he said, receiving
better prices on their trades.
“What does it say to mom-
and-pop investors,” Mr. Jack-
son said in an email, “that our
stock markets are full of
abuses like these?”
A remedy, Mr. Jackson
wrote, is to bar exchanges from
controlling the public feed
while they sell access to private
price data. The current setup
has incentivized the exchanges
to invest heavily in their pri-
vate—and highly profitable—
data feeds while letting the
public system languish, he said.
than $15 billion to buy XL
Group, a Bermuda-based prop-
erty-and-casualty firm.
Marsh & McLennan said it
would accelerate Jardine Lloyd
Thompson’s growth in em-
ployee benefits and its U.S. ex-
pansion, and that its revenue
is expected to increase from
around $14 billion.
The tie-up also expands
Marsh & McLennan’s footprint
in the London insurance mar-
ketplace but comes amid wide-
spread uncertainty surround-
ing Britain’s impending exit
from the European Union,
slated for March 2019.
Details of the country’s fu-
ture relationship with the bloc
remain unclear, but Marsh &
McLennan Chief Executive Dan
Glaser said the firm was
“happy to bet on Britain.”
“Sure, Brexit creates some
short-term uncertainty. So
what? We are building a com-
Jardine Lloyd has
more exposure to
fast-growing Asia
Pacific region.
pany that should perform well
in the short term, medium
term and long term, and any-
body who thinks the U.K. is
not a good place to invest,
doesn’t know Great Britain,”
Mr. Glaser said in a conference
call.
The deal is expected to re-
sult in annual cost savings of
$250 million over the next
three years. Marsh & McLen-
nan expects to cut between 2%
and 5% of the combined work-
force, with the costs of inte-
gration estimated at $375 mil-
lion.
Even before regulators
softened their stance on lend-
ing guidelines, companies in-
terested in taking on a lot of
debt could go to unregulated
banks. Regulated banks also
sometimes exceeded the six-
times leverage test on deals
where they could argue there
was a clear path to reducing
leverage in the future.
In the second quarter of
this year, nearly 15% of new
U.S. loans backing leveraged
panies with debt-to-Ebitda ra-
’18 highest percentage since the
third quarter of 2014, when
20% of deals were in that cate-
gory, according to LCD.
The recent uptick in highly
leveraged deals comes as over-
all corporate leverage has been
on a modest downward trend.
The slowdown in borrowing is
one reason why investors say
there has been a warm recep-
tion to companies such as Re-
finitiv, as investors look to put
cash to work in the face of
limited supply of new debt.
As of Monday, the average
yield on speculative-grade
bonds was 3.18 percentage
points above Treasurys, com-
pared with 3.43 percentage
points at the end of last year,
based on Bloomberg Barclays
data. The drop indicates healthy
demand for the asset class.
The success of Refinitiv’s
debt offering bodes well for
other large, private-equity deals.
—Miriam Gottfried
contributed to this article.
 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.
THE WALL STREET JOURNAL.
Treasurys
Sell Off;
Yield Tops
3% Hurdle
BY SAM GOLDFARB
A weekslong selloff in U.S.
government bonds intensified
on Tuesday, as the yield on the
10-year Treasury note
wrenched clear of the 3% level
that has for months acted as
its ceiling.
CREDIT The yield on
MARKETS the benchmark
10-year U.S.
Treasury note
settled at 3.048%, its highest
level since May 22, compared
with 3.001% Monday.
Yields, which rise when
bond prices fall, first declined
but then climbed along with
global stocks after the Trump
administration said late Mon-
day that a 10% tax would be
imposed on Chinese goods
starting Sept. 24, with the rate
rising to 25% at the end of the
year.
Reflecting demand for risk-
ier assets over safer ones,
yields continued to rise even
after China said Tuesday that
it would retaliate by imposing
tariffs on $60 billion of U.S.
goods.
“Seemingly, there was an
expectation that the tariffs
that were going to be imple-
mented were going to be at
the higher 25% rate, and
they’re initially at 10%, so I
think there’s some relief reac-
tion to that,” said Larry Mil-
stein, head of government and
agency trading at R.W. Press-
prich & Co.
Another factor pressuring
Treasurys is the large amount
of new corporate debt being
sold this week, analysts and
traders said. When businesses
sell new bonds, investors often
respond by selling Treasurys
to make room in their portfo-
lios or hedge their exposure to
rising interest rates.
Tuesday’s selling marked a
break from a recent pattern, in
which a 3% 10-year yield
brought strong demand from
investors. The yield’s next ma-
jor milestone would be reach-
ing its 2018 closing high of
3.109%, set on May 17.
In recent months, Treasury
yields have been simultane-
ously buoyed by optimism
about the U.S. economy and
constrained by concerns about
the outlook elsewhere in the
world, especially in an envi-
ronment of unsettled global
trade relations.
Given the strength of U.S.
economic data and the Fed’s
commitment to raising rates,
some investors have believed
it was only a matter of time
before the 10-year yield broke
through the top of its recent
trading range.
AUCTION RESULTS
Here are the results of Tuesday's Treasury auction.
All bids are awarded at a single price at the market-
clearing yield. Rates are determined by the difference
between that price and the face value.
FOUR-WEEK BILLS
Applications
Accepted bids
" noncompetitively
" foreign noncompetitively
Auction price (rate)
Coupon equivalent
Bids at clearing yield accepted
Cusip number
The bills, dated Sept. 20, 2018, mature on Oct. 18,
2018.
Dow Jumps 185 Points, With Tariffs Viewed as Moderate
BY DAVID HODARI
U.S. stocks rose as inves-
tors viewed a fresh round of
tariffs on Chinese goods, as
well as China’s early re-
sponse, as more measured
than expected.
Because the introduction
of the latest tariffs will be
staggered,
TUESDAY’S there is cau-
MARKETS tious opti-
mism that
there is time
for negotiations between the
countries, some traders said.
The Dow Jones Industrial
Average gained 184.84
points, or 0.7%, to 26246.96
and the S&P 500 rose 15.51
points, or 0.5%, to 2904.31,
while the Nasdaq Composite
gained 60.32, or 0.8%, to
7956.11.
Investors sold stocks
around the world Monday in
anticipation of the Trump ad-
ministration’s announcement
and sent the Shanghai Com-
posite to its lowest level
since November 2014.
“Whenever there are tariff
* * * *
Oil Rises With Global Tensions
BY STEPHANIE YANG
AND CHRISTOPHER ALESSI
Oil prices increased Tues-
day, boosted by heightened
geopolitical tension after Rus-
sia blamed Israel for the loss
of one of its reconnaissance
planes shot down overnight by
Syrian defense systems.
Light, sweet crude for Octo-
ber delivery rose 1.4% to
$69.85 a barrel on the New
York Mercantile Exchange.
Brent, the global benchmark,
increased
COMMODITIES 1.3% to
$79.03.
The loss
of Russia’s reconnaissance
plane, shot down by Syrian de-
fense systems, threatens to in-
crease geopolitical instability,
contributing to uncertainty in
the global oil market. The Rus-
sian Defense Ministry told Is-
rael that it “reserved the right
to take steps to respond” to
the downed plane.
“Simply the presence of
[Russia, Syria and Israel] in
the same headline certainly
isn’t going to dampen bullish
sentiment today,” said ana-
lysts at TAC Energy.
Analysts said oil prices
have become more sensitive to
shifts in geopolitical tensions,
as global supply has been
called into question. Traders
are grappling with the impact
of Iranian sanctions on the
country’s exports, while also
debating how much the global
oil cartel will make up the dif-
ference.
President Trump in May
pulled the U.S. out of a 2015
international agreement to
curb Iran’s nuclear program,
setting the stage for the reim-
us l,
position of economic sanctions
on the Islamic Republic. Ana-
al a
e
lysts have estimated that more
ci on
Papua New Guinea Tests the Debt Market
BY JULIE WERNAU
er rs
AND MANJU DALAL
A planned $500 million
bond sale from Papua New
m e
Guinea, a country that has
tried and failed to sell foreign
debt before, will test whether
m rp
investors are still receptive to
riskier borrowers after a sell-
off in emerging markets.
The offering could conclude
this week and would mark the
co Fo
first sale of junk-rated sover-
eign-dollar debt since July,
when Angola sold $500 million
in 30-year bonds, according to
Dealogic.
In recent months, rising
U.S. interest rates and a stron-
ger dollar have hit emerging-
market stocks and bonds. That
has made it harder for devel-
oping nations and companies
to borrow, especially those
with junk, or below-invest-
ment-grade, credit ratings.
n-
A young democracy grap-
pling with crime, corruption,
and natural disasters, Papua
New Guinea met international
no
investors in 2013 and 2016 but
$135,212,102,700 didn’t sell dollar bonds. The
$40,000,479,200
$970,633,400
country’s debt is rated single-
$190,000,000 B by S&P Global, and it has a
99.842889
(2.020%)
similar B2 grade from
2.051% Moody’s, putting it roughly on
50.39%
912796QD4
par with Belarus, Egypt and
Pakistan.
The nation of roughly eight
threat rumors, the market’s
knee-jerk reaction is to sell
off,” said Mohit Bajaj, direc-
tor of ETF trading solutions
at WallachBeth Capital. “But
then when we realized it’s
smaller, we bounce back.”
President Trump late Mon-
day announced new tariffs on
$200 billion in Chinese
goods. The White House said
the 10% tax is set for next
Monday on a range of Chi-
nese imports, including lug-
gage and seafood. That levy
will rise to 25% at the end of
2018.
In response, China’s com-
merce ministry said it “has
no choice but to undertake
synchronous retaliation” to
defend its interests and un-
veiled plans for tariffs on an
additional $60 billion of U.S.
goods.
The fresh round of tariffs
marked an escalation of the
continuing trade spat that
has dogged relations between
the world’s two largest econ-
omies.
But investors “were ex-
pecting tariffs of 25% and in-
MARKETS
ALI MOHAMMADI/BLOOMBERG NEWS
An oil tanker docked in Iran. Analysts say oil prices have become more sensitive to geopolitical tensions amid sanctions on Iran.
than one million barrels a day
of Iran’s roughly 2.5 million
barrels a day in exports could
be at risk.
However, increasing pro-
duction from the Organization
of the Petroleum Exporting
Countries and its partner pro-
ducers, including Russia, have
helped keep a cap on prices.
“OPEC members with spare
on capacity try to live up to ex-
pectations to make up for the
production shortfall in mem-
ber countries, such as Venezu-
ela and Iran,” according to
Tamas Varga, an analyst at
brokerage PVM Oil Associates
Ltd., who said the group’s out-
Bouncing Back
0%
Two of the most
punished financial –5
markets in the –10
emerging world are
seeing their first –15
signs of reprieve. –20
JPMorgan bond –25
index returns
2018
U.S. dollar-debt issuance in the
200 emerging world has slowed.
Year through Sept. 14
100
0 New Guinea ranked 135th in
1995 2000
Sources: Thomson Reuters (index returns) Dealogic (debt issuance)
million people in the south-
western Pacific is now offering
a yield of about 8.5%, several
investors said.
These bonds will have a
five-year maturity, and the
country could also sell 10-year
bonds, some investors said.
The deal would be large
enough to gain Papua New
Guinea’s debt entry to the
widely tracked JPMorgan
EMBI Global Diversified Index.
“Usually when we see these
kinds of deals, people joke
that we’re at the top of the
stead only got ones of 10%
for now, so the reaction is
quite positive,” said Claudia
Panseri, European equity
strategist at UBS Global
Wealth Management.
The technology sector was
one corner of the market
where the tariffs were em-
braced as less drastic than
feared. The sector rebounded
Tuesday, rising 0.6% in the
S&P 500 after dropping 1.4%
a day earlier.
Importers have in recent
weeks sought to be spared
from tariffs, with the Trump
administration removing
about 300 products initially
included in the original tariff
list released in early July.
Smartwatches—after a direct
request from Apple—and Blu-
etooth devices were among
the products to be exempted
from the levies.
Also helping the bounce
from Monday’s declines were
investors’ expectations that
negotiations between Wash-
ington and Beijing, currently
being planned for the coming
weeks, will proceed as ex-
put has increased nearly
700,000 barrels a day in the
past five months.
Prices fluctuated between
gains and losses earlier in the
session as trade tensions be-
tween the U.S. and China also
gave investors pause.
President Trump on Mon-
day announced plans to im-
pose new tariffs on around
$200 billion in Chinese goods,
leading China to vow fresh re-
taliatory measures. On Tues-
day, China retaliated by an-
nouncing new tariffs on $60
billion of U.S. goods. Such ac-
tions have raised concerns
over the strength of global
$600 billion
Turkey 500
400
Argentina
300
Rest of year
’05 ’10
market. But we’re in a bear
market,” said Samy Muaddi, a
lead portfolio manager for
emerging-markets bonds at T.
Rowe Price.
Investors closely follow gy-
rations in emerging markets
because many consider them a
bellwether for global risk ap-
petite, and because problems
can spread to other countries.
“The amount of interest
will be an important indica-
tor,” said Bart van der Made,
an emerging-markets debt
portfolio manager at Neu-
Rebound
Technology stocks in the S&P 500 bounced back Tuesday after
sliding a day earlier ahead of the Trump administration's latest
tariff announcement.
0.2%
0 iffs on foreign-exchange trad-
–0.2
–0.4
–0.6
–0.8
–1.0
–1.2
–1.4
–1.6
Monday Tuesday
Source: FactSet
pected.
Some traders were inter-
preting the staggered intro-
duction of the tariffs as a
sign the Trump administra-
tion is still eager to reach a
trade deal with China ahead
of midterm elections in No-
vember, according to Stewart
Wednesday, September 19, 2018 | B15
fuel demand, which has been a
major factor underpinning the
crude rally in the past year.
“The oil market has thus far
been able to take the evolving
tariff issues in stride with the
help of a steady U.S. stock
.
market that has virtually ig-
ly
nored potential negative im-
pacts off of the mounting tar-
iffs that the Trump
administration is applying on
China,” said Jim Ritterbusch,
president of Ritterbusch & As-
sociates, in a Tuesday note.
Gasoline futures rose 1.4%
to $2.0049 a gallon, and diesel
futures gained 1.3% to $2.2357
a gallon.
’15
THE WALL STREET JOURNAL.
berger Berman who is consid-
ering buying the bonds.
In 2017, speculative-grade
bond issuance in the develop-
ing world reached a record. In-
vestors snatched up debut
bonds at single-digit yields in
places such as Tajikistan and
the Maldives, seeking to im-
prove on the low returns on
offer in the developed world.
That year, Argentina sold 100-
year bonds despite a history of
defaults. This year, it turned
to the International Monetary
Fund for aid.
S&P 500
S&P 500
technology
sector
THE WALL STREET JOURNAL.
Cook, head of London sales
trading at Berenberg.
The Stoxx Europe 600 rose
0.1% after China-exposed in-
dexes shrugged off early
pressure in Asia-Pacific trad-
ing. The Shanghai Composite
Index ended 1.8% higher,
while Hong Kong’s Hang Seng
Price Bump
Steady demand and shrinking
Iranian exports have boosted oil.
Brent crude-oil price
$80 per barrel
78
76
74
72
70
Aug. 2018 Sept.
Source: Dow Jones Market Data
THE WALL STREET JOURNAL.
One widely followed gauge
of emerging-markets shares
compiled by MSCI tipped into
bear territory this month,
meaning a peak-to-trough de-
cline of more than 20%. Mean-
while, emerging-market bond
prices have fallen 4% this year,
with some of the riskiest down
as much as 20%
With gross domestic prod-
uct of about $21 billion last
year, Papua New Guinea’s
economy is roughly the same
size as Afghanistan’s, World
Bank data shows. It sits on the
Pacific Ring of Fire, a seismic
belt in the Pacific Ocean. The
bond’s prospectus notes Papua
Transparency International’s
corruption perception index
last year, while homicide rates
in the capital, Port Moresby,
are nearly five times the
global average.
Papua New Guinea says the
proceeds will help refinance
existing debt, as well as fund
infrastructure projects and its
hosting of the regional Asia-
Pacific Economic Cooperation
meetings later this year.
Aninda Mitra, senior sover-
eign analyst at BNY Mellon In-
vestment, said the bond sale
offers “a rare chance to get a
reasonably high yield from a
country which is different
from its similar-rated peers.”
closed 0.6% higher. Early
Wednesday, the Shanghai
benchmark was down less
than 01.%, the Hang Seng was
up 0.3% and Japan’s Nikkei
225 Stock Index was up 1.5%.
The impact of the new tar-
ing was limited, with the Chi-
nese yuan 0.1% lower against
the dollar. The WSJ Dollar
Index, which measures the
U.S. currency against a bas-
ket of 16 others, rose 0.1%.
The dollar’s steady rise
has stalled in recent weeks,
with strategists suggesting
that investors are becoming
inured to the trade fight.
The dollar “won’t price the
same thing over and over
again. Part of the recent
slowing is that the Chinese
were letting the yuan
weaken, but since they effec-
tively called a halt to weak-
ening in the currency, we’ve
seen things calm down,” said
Kit Juckes, chief foreign-ex-
change strategist at Société
Générale.
—Corrie Driebusch
contributed to this article.
 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.
B16 | Wednesday, September 19, 2018
Buyback ‘Blackout’ to Test Stock Market
BY AMRITH RAMKUMAR Surging stock buybacks and strong corporate profits have supported equities and tamed volatility.
But some think a blackout on repurchases will test the market.
A steady stream of robust
earnings and economic data Contribution by companies to the year-over-year growth in buybacks for the S&P 500*
has virtually zapped volatility
from U.S. stocks, but a coming
freeze on share buybacks could
challenge the market.
Companies typically don’t
repurchase their own shares in
the month before reporting
quarterly results because of
regulations, and with the third
quarter coming to an end, 86%
of the S&P 500 will be tempo-
rarily restricted by Oct. 5, ac-
cording to Goldman Sachs ana-
lysts led by David Kostin.
That could remove a source
of support to financial mar-
kets: Buybacks account for the
largest percentage of cash
spending by companies in the
benchmark index for the first
time in 10 years, the bank said
in a note Friday.
Share repurchases can play
a role in boosting stock prices
because they lower the num-
ber of shares outstanding—
driving up per-share earnings
even without overall profit
growth. Company demand can
also trigger stock-price gains.
Analysts have said record
stock buybacks have under-
pinned recent market ad-
vances, helping major indexes
stay near record highs despite
ongoing U.S.-China trade ten-
sions and a rout in emerging
markets. Historically, compa-
nies used the most cash on
capital expenditures.
However, in the first half of
the year, share buybacks in-
creased nearly 50% and ap-
proved repurchases are on
pace to set a full-year record
above $1 trillion, Goldman
said.
That is why the imminent
blackout period for buybacks
injects uncertainty for inves-
tors and traders. Returns from
the S&P 500 during blackout
and nonblackout periods have
been roughly in line going
back to 2000, but market vola-
tility tends to be higher when
buybacks aren’t allowed, the
Email: heard@wsj.com
Tariffs Could Distort Economy
When times get tough, the
tough go shopping. That is
the rational response to the
escalating U.S.-China trade
battle.
A buying spree by con-
sumers and businesses look-
ing to get ahead of the tariffs
will add another distortion
to an economy already
revved up by a big stimulus
and tax cut and already fac-
ing a tight jobs market and
rising prices.
no
With President Trump’s
announcement of a 10% tariff
on $200 billion in goods on
Monday and China’s an-
nouncement on Tuesday of
retaliatory tariffs on $60 bil-
lion in U.S. goods, trade ten-
sions between the world’s
two largest economies grew.
Barring a deal, U.S. tariffs
will rise to 25% at the end of
the year, and tariffs on an
additional $267 billion Chi-
nese goods could be an-
nounced.
Tariffs are a tax on goods,
and to avoid that tax people
and companies will buy be-
fore it takes effect. When
tariffs were imposed on
washing machines and dry-
With These Results, General Mills Is Going to the Dogs
General Mills is racing
against itself, introducing
new products at a rapid rate
even as sales decline for
older brands. Meanwhile, the
food company’s expensive
acquisition of a premium
pet-food brand is set to
show underwhelming results
for at least another quarter.
Organic net sales, which
strip out acquisitions and
currency effects, rose less
than half a percentage point
from a year earlier in the
quarter ended Aug. 26, exec-
utives said Tuesday. That
compares with growth of
around 1% for the past three
quarters.
New products were key to
achieving any growth at all.
Apple
Amgen
Cisco
AbbVie
Oracle
Bank of America
Broadcom
Celgene
4 rose after news of the new lev-
Union Pacific
4 taking effect later this month
Facebook
4 2013
The S&P 500 and Nasdaq Composite
have hit fresh records in the past month.
Index performance
6%
S&P 500
4 Nasdaq Composite
2 15
0 10
on
–2
Last record for both
the S&P 500 and Nasdaq
–4
us l,
June July Aug.
al a
e
*Through Sept. 13 †Through June
Sources: SIX; FactSet; Goldman Sachs; Compustat
ci on
Goldman Sachs analysts found.
The current blackout period
comes during another remark-
ably placid period for U.S.
stocks. The Cboe Volatility In-
er rs
dex, which measures expected
swings in the S&P 500, has
HEARD ON THE STREET
m e
m rp
co Fo
Through the Wringer
Change in major appliance sales from a year earlier, adjusted for inflation
6%
4 willing to talk, the tariffs
2
n-
0 But if they do stock up,
–2
–4
Jan. 2018 Feb. March
Source: Commerce Department
ers earlier this year, sales
picked up before the price
increases occurred and fell
sharply after. When Japan
raised its consumption tax to
8% from 5% in 2014, private
final consumption expendi-
tures jumped by 1.9% the
quarter before it took effect
and fell 4.6% the quarter af-
ter.
Companies, which are fo-
cusing more on the trade
spat than consumers, will
import as much as they can
The company highlighted re-
cently launched items like
YQ, a high-protein, low-sugar
yogurt and European-style
Yoplait Oui, which comes in
fancy glass containers. Nov-
elty rather than health bene-
fits were paramount as
twists on breakfast cereal
helped, too.
Yet overall U.S. cereal
sales were up just 1% in the
quarter, and U.S. yogurt
sales fell by 2%. Cereals re-
main fundamentally chal-
lenged as Americans avoid
sugary breakfasts. Similarly,
U.S. snack sales were down
by 4%. It seems General
Mills is sprinting just to
stand still in many product
categories.
MARKETS
10
8 40%
6 Buybacks
6 S&P 500 already unable to buy
6
5 10
Corporate profits are projected to grow
double digits the next two quarters.
Earnings growth, change from a year earlier
25%
20
5 Some analysts aren’t as
0 11
Sept. 1Q 2018 2Q
dropped in five of the past six
sessions and remains near his-
torically low levels.
Meanwhile, the S&P 500 has
gone 59 trading days without a
move of 1% in either direction,
the longest streak since Janu-
FINANCIAL ANALYSIS & COMMENTARY
April May June July
THE WALL STREET JOURNAL.
from China before the tariffs
hit. That is what happened
ahead of the washing-ma-
chine and dryer tariffs.
A similar dynamic appears
to have played out ahead of
Monday’s tariff announce-
ment. West Coast ports re-
ported a big increase in in-
coming cargo in June as
companies filled their ware-
houses before the expected
tariff increases. That led to a
slowdown in subsequent
months. Imports of Chinese
Unsatisfying
General Mills organic net sales,
change from year earlier
2%
0 lets, the “food, drug and
–2
–4
–6
FY 2017 ’18
Note: All quarters except 1Q19 are rounded to
the nearest pct. pt. Fiscal year ends in May.
Source: the company
Hopes for substantial
sales growth therefore hinge
on Blue Buffalo, the premium
pet-food brand acquired this
year. Blue Buffalo’s retail
sales rose 9% in the August
quarter and General Mills
S&P 500 companies, change from a year earlier
30
20
0
–10
’14
Projection
3Q 4Q 1Q ’19
ary, according to Dow Jones
Market Data. It is also only the
fifth time in the past five years
the measure has posted such a
streak for longer than 50 ses-
sions.
Consistent corporate profits
furniture, which are included
in the tariffs, rose 10.5% in
June and July compared with
a year earlier, according to
the Commerce Department.
With the two sides still
may never take effect. Con-
sumers and businesses could
hold off spending in the ex-
pectation of a settlement.
and a strong economy gives
them the wherewithal to do
it, the spending could boost
growth through the end of
the year. Businesses will
likely step up their efforts to
build China-made inventory.
This could lead to a New
Year’s hangover as sated
consumers balk at higher
prices and businesses stop
ordering because their ware-
houses are stuffed with mer-
chandise. Chinese tariffs on
U.S. goods also could hurt.
With interest rates set to go
up next week and again in
December, the tightening
could make the impact of the
spending slowdown worse.
That is when the impact of
the trade fight will be felt.
—Justin Lahart
said it expects double-digit
sales growth for the fiscal
year ending in May.
General Mills’s plan has
been to bring the brand into
more mainstream retail out-
mass” channel as it is called
in the industry, as opposed
to pet specialty stores. So it
’19 was somewhat puzzling on
Tuesday when General Mills
explained that Blue Buffalo
actually already had started
expanding into these chan-
nels in autumn last year, be-
fore it was acquired. For that
reason, growth from a year
earlier in the November
quarter might look weak, the
company warned Tuesday.
General Mills Chief Execu-
THE WALL STREET JOURNAL.
24%
Capital expenditures
’15 ’16 ’17 ’18†
The Cboe Volatility Index has been muted
lately after rising earlier in the summer.
18
17
16
.
ly
15
14
13
12
June July Aug. Sept.
THE WALL STREET JOURNAL.
coupled with robust economic
growth have placated inves-
tors. Analysts estimate third-
quarter earnings by companies
in the S&P 500 will rise by 20%
from a year earlier. That would
be the third-fastest quarterly
OVERHEARD
Of the 20 Marvel films re-
leased since 2008, not one
has featured a female lead.
There have been plenty of fe-
male characters, but none
was the lead hero. It was all
starting to look a bit out of
date in the #MeToo era.
That is about to change:
Walt Disney on Tuesday pre-
miered the trailer for “Captain
Marvel,” who in the 1970s
comic books was a fighter pi-
lot who had her DNA fused
with that of an alien.
With this film, scheduled
for March, Disney is reaching
into Marvel’s obscure back
catalog. But they have done
so successfully with “Guard-
ians of the Galaxy.” And last
year’s “Wonder Woman” from
DC Comics grossed more
than $800 million world-wide,
according to Box Office Mojo.
Marvel will get more fe-
male heroes when Fox’s X-
Men franchise comes into
Disney’s fold, offering iconic
characters like Storm and
Jean Grey. A better gender
balance could be just what is
needed to keep Marvel’s box-
office party going strong.
tive Jeff Harmening said
Blue Buffalo still has room
for growth, with the brand
penetrating just 3% of pet-
owning households and 30%
of food, drug and mass
stores. But, based on the
company’s forecast Tuesday,
the benefit might not be-
come apparent until early
2019 at the earliest.
Investors in General Mills
never loved the Blue Buffalo
deal because of the high, $8
billion price the company
paid.
With the core businesses
still stuck, shareholders are
impatient to see some bene-
fit. They will have to wait a
bit longer.
—Aaron Back
growth rate ever, trailing only
the two previous quarters, ac-
cording to FactSet. And the
U.S. economy expanded at a re-
vised rate of 4.2% in the sec-
ond quarter, the quickest pace
in nearly four years.
Because major indexes have
been unusually calm lately,
sudden outsize market moves
during the blackout period
could sour investor sentiment
toward stocks, some analysts
say. That occurred when the
market tumbled in February.
With roughly 20% of the
back shares, the U.S. an-
nounced new tariffs on about
$200 billion in Chinese goods
late Monday. Beijing re-
sponded with duties on $60
billion of U.S. products.
The stock market actually
ies this week, as the tariffs
were less stringent than many
investors had feared. But some
analysts expect trade anxiety
to build ahead of planned No-
vember meetings between
President Trump and Chinese
leader Xi Jinping. Both the U.S.
and China have laid out plans
to end their monthslong tariff
fight before those meetings.
And next week, the Federal
Reserve is expected to raise
rates and update its projected
path for future increases, po-
tentially stoking fears that
tighter financial conditions
could challenge companies and
consumers.
concerned about the blackout
period because almost 80% of
the growth in buybacks has
been concentrated in 10 com-
panies, most notably Apple,
which itself has driven nearly
one-quarter of the increase in
share repurchases this year.
But after weeks of a quiet
trading, others believe a quick
pickup in volatility could cause
investors to reassess the mar-
ket backdrop.
—Michael Wursthorn
contributed to this article.
WSJ.com/Heard
Oracle Is
Buying Way
To Stability
There are worse ways to
spend a dollar—or 10 billion
of them.
Oracle’s otherwise disap-
pointing fiscal first-quarter
results late Monday con-
tained one nice surprise: The
software giant poured a for-
tune into share repurchases.
About $10 billion was
spent during the quarter on
212 million shares, the com-
pany said in its conference
call. That makes for a record
amount for the company in a
given quarter and brings the
total spent on buybacks over
the past 12 months to about
$21 billion.
Oracle has used its
healthy free cash flow to
boost buybacks over the past
few quarters, which has
helped offset the pressure of
disappointing financial re-
sults. Before Monday, Ora-
cle’s previous four quarterly
reports led the stock price to
drop an by average of 7% the
following day, according to
FactSet. In each of those
cases, the shares quickly re-
covered.
Such seems the case this
time. Oracle’s share price
dropped 4% after hours
Monday, as revenue fell a bit
short of Wall Street’s tar-
gets. But the stock ended
only slightly lower Tuesday.
Oracle’s shares have man-
aged to climb about 4% for
the year.
Still, those buybacks
aren’t without cost. Oracle’s
capital expenditures for the
trailing 12 months totaled
$1.6 billion—down 25% from
the same period last year at
a time when cloud-service ri-
vals such as Amazon.com,
Microsoft and Google are
rapidly growing their own
investments. There may be
worse ways to spend $10 bil-
lion, but there may be some
better ones as well.
—Dan Gallagher
 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.

JOURNAL REPORT
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The Experts
An Online
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HOW AI CAN HELP

STOP C Y B E R AT TA C K S

.
ly
on
us l,
al a
e
ci on
er rs

It isn’t a
m e

silver bullet.
But as
m rp

hackers get
smarter
co Fo

and more
determined,
artificial
intelligence
is going to be
an important
part of the
n-

solution.
ALVARO DOMINGUEZ

no

days is the amount of data we see is over- “Is AI a silver bullet? Absolutely not,” doesn’t work for zero-day malware—
BY ADAM JANOFSKY

A
s corporations struggle
to fight off hackers and
contain data breaches,
some are looking to ar-
tificial intelligence for
a solution.
They’re using ma-
chine learning to sort
through millions of malware files, search-
ing for common characteristics that will
help them identify new attacks. They’re
analyzing people’s voices, fingerprints and
typing styles to make sure that only autho-
rized users get into their systems. And
they’re hunting for clues to figure out who
launched cyberattacks—and make sure
they can’t do it again.
“The problem we’re running into these
whelming,” says Mathew Newfield, chief
information-security officer at Unisys
Corp.
“Trying to analyze that information is
impossible for a human, and that’s where
machine learning can come into play.”
The push for AI comes as companies
face a huge increase in threats and more-
sophisticated criminals who can often
draw on nation-states for resources. More
than 121.6 million new malware programs
were discovered in 2017, according to a re-
port by German research institute AV-Test
GmbH. That is equivalent to about 231 new
malware samples every minute.
Of course, nobody thinks AI is the cure-
all for stopping threats. New operating
systems and software updates introduce
unpredictable risks, and hackers adopt new
tactics.
says Koos Lodewijkx, vice president and
chief technology officer at IBM Security.
“It’s a new tool in our toolbox.”
Because of those limitations, reliance on
algorithms “is a little concerning and in
some cases even dangerous,” says Raffael
Marty, vice president of corporate strategy
at cybersecurity firm Forcepoint, which is
owned by defense contractor Raytheon Co.
Still, most cybersecurity experts believe
that AI can do a lot more good than harm
as hackers get smarter and more deter-
mined. Here are a few examples of how cy-
bersecurity pros are using artificial intelli-
gence—and what’s next for the technology.
DETECTING MALWARE
Traditionally, security systems look for
malware by watching for known malicious
files and then blocking them. But that
threats that are unknown to the security
community. AI is helping to solve that
problem and identify new attacks as soon
as they appear. The systems analyze exist-
ing malware and see what characteristics
the files have in common, then check to
see if potential new threats have any of
those traits, says Avivah Litan, a cyberse-
curity analyst at Gartner Inc.
That is the method used at security firm
CrowdStrike Inc. When a user clicks on a
suspicious file, the company’s tool scans
hundreds of different attributes, then runs
them through a machine-learning algo-
rithm that compares them to the com-
pany’s malware database and determines
how likely the file is to be malicious.
“The reason why machine learning
works so well for malware is that there’s
Please turn to the next page

INSIDE

The Cyberthreats That Most A Call for Passphrases Say Hello to Facial Recognition
Worry Election Officials Two researchers have a way to Businesses want to use the
How attacks could be attempted— make them a reality as a better technology in everyday commerce.
and what officials are doing to alternative to passwords, R4 If, that is, customers let them, R6
make sure they don’t succeed, R2
Why You Need a VPN— Anatomy of a Cryptojacking
Let’s Redo User Agreements and How to Choose One How criminals use hijacked com-
We should have a better under- Everybody’s snooping on your puters to earn cryptocurrency, R6
standing of what we’re agreeing to internet traffic. Here’s how to stay
and more choices, R4 hidden, R5 AT WSJ.COM/
JOURNALREPORTTECH
Hackers’ Mind Games Wanted: Cybersecurity Skills The New Data-Breach Math
‘Social engineering’ nets valuable Three ideas for solving the The GDPR’s 72-hour reporting rule
information from employees, R4 dearth of qualified employees, R5 has companies scrambling.
 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.

R2 | Wednesday, September 19, 2018 THE WALL STREET JOURNAL.

JOURNAL REPORT | CYBERSECURITY

The Biggest Threats to a Fair Vote

What keeps election officials up at night—and what they’re doing to make sure it all works for this year’s voting and beyond
the internet and thus are less sus-
BY ALEXA CORSE
Voting Without a Net ceptible to remote hacking. Officials
also say it’s common to conduct vari-
AS ELECTION DAY gets closer, one In 13 states (shaded in green), at least one county plans to use electronic voting machines with no paper backups ous tests before and after elections
issue looms large for voters and elec- for most voters in this year's elections on many types of voting machines,
tion officials alike: cybersecurity. along with restricting physical access
Hoping to quell fears about for- to the machines and installing pro-
eign hackers and repel potential Wash. tective seals on them.
N.H.
threats, many states and counties are Still, at the DEF CON computer-se-
beefing up their plans to deal with Mont. Vt. Maine curity conference in Las Vegas this
N.D. Minn.
cyberattacks. They’re shoring up sys- summer, hackers penetrated some
tems to protect their voter databases Ore. voting machines and other election
and hiring security experts to assess Idaho S.D. Wis. N.Y. Mass. equipment as part of a demonstra-
the strength of their defenses. Wyo. Mich. tion. Some makers of voting ma-
They’re coordinating with social-me- Iowa Pa. R.I. chines responded, saying it was un-
dia organizations to stamp out delib- Nev. Neb. realistic that malicious actors would
erately fraudulent messages that Ind. Ohio Conn. have so much access during an elec-
Utah Ill.
could mislead voters about how to Colo. W.Va. N.J. tion.
cast a ballot. And they’re banding to- Kan. Mo. Va. State election officials from sev-
Calif. Ky. Del.
gether to share information and sim- eral states that use paperless voting
N.C. Md.
ulating how to respond to potential Tenn. machines say they are taking post-
emergencies. Ariz. Okla. election security measures.
N.M. Ark. S.C. D.C.
“There absolutely is more empha- For instance, Louisiana Secretary
Miss. Ga.
sis on contingency planning” since Ala. of State Kyle Ardoin says officials
2016, says J. Alex Halderman, a pro- confirm that the number of people
fessor of computer science at the Texas who checked in on Election Day
La.
University of Michigan. Alaska matches the number of votes cast,
State election officials say voters Fla. among other measures. A spokesman
should feel assured that voting sys- for Mr. Ardoin adds there have been
tems are secure. And U.S. intelligence very few discrepancies, and that in
officials emphasize that there is no those cases, officials didn’t find any
evidence that hackers changed any Hawaii evidence of deliberate tampering.
votes in 2016. But some officials say
their biggest concern isn’t that a for-
eign adversary like Russia would al-
ter ballots. They’re worried about
Source: Verified Voting Foundation

In a bipartisan report issued ear- longer lines at polling places, says

THE WALL STREET JOUR
JOURNAL.

will use for most voters this year, ac-

elections losing legitimacy.
“I do worry that we will never
have another uncontested presiden-
tial election,” says Connecticut Sec-
retary of State Denise Merrill, a
lier this year, the Senate Intelligence
Committee concluded that Russian-
affiliated hackers accessed voter-reg-
istration data in a handful of states
during the 2016 election cycle. There
Joseph Lorenzo Hall, chief technolo-
gist at the nonprofit Center for De-
mocracy and Technology. Some vot-
ers may not be able to wait, or may
not be willing to provide personal
cording to the Verified Voting Foun-
dation—were once considered state
of the art. But now security experts
are recommending paper ballots or
machines with paper backups to
3. Malicious social-media ac-
counts could spread false vot-
ing information online, such as
fake instructions on how to vote.
Election officials want to use so-
cial media to educate voters—and
want the bad guys to stay off it. U.S.
intelligence officials, for instance,

.
Democrat. “The seed of doubt has is no evidence any such data was al- details on the form, Mr. Hall says. counteract any potential bad actors charge that Russia has used fraudu-

been sown.”
Shane Schoeller, county clerk in
Greene County, Mo., says he feels
there is little room for error or set-
backs. “You’re either renewing that
confidence or you’re taking that con-
fidence away as that election is con-
ducted,” says Mr. Schoeller, a former
tered, the report said.
A spokeswoman for the committee
declined to comment on its continu-
ing investigation. Moscow has denied
on
hacking and using fraudulent social-
media accounts to undermine the
2016 and 2018 elections.
For the midterms, Matthew Mas-
us l,
ly
“Say it’s a hotly contested mid- who might try to tamper with the
term election” in a small congressio- machines’ software.
“You have to have a way of check-
ing that the software has not been
‘I do worry that
we will never have
hacked and that there’s no errors,”
says Marian Schneider, president of
Verified Voting, a Philadelphia-based
another uncontested nonprofit that has long advocated for
lent social-media accounts to spread
divisive political messages during
the 2016 and 2018 election cycles.
So, several state election officials
say they are beefing up their crisis-
communications capabilities. For in-
stance, some officials say that, unlike
in 2016, they now have contacts at

Republican speaker pro tem of the
Missouri House of Representatives.
Here are some of the cyber con-
cerns that election officials are wres-
tling with.
terson, a senior cybersecurity ad-
viser at the Department of Homeland
al a
e
Security, says he’s helping state and
local officials secure voter data.
Many states are also moving to
ci on
presidential election,’ a “paper trail” of votes.
The Senate Intelligence Commit-
says Connecticut’s
tee’s bipartisan report endorsed that
secretary of state. idea. Many voting machines “do not
have a paper record of votes as a
Facebook and Twitter they can call
to report posts containing deliberate
disinformation about how to vote.
Spokesmen for Facebook and
Twitter say they will work to remove

bolster the security of voter-registra- backup counting system that can be any reported posts that violate their

1. Hackers could try to tamper

with voter records and poten-
tially sow confusion about who’s
allowed to vote.
tion systems. For example, Vermont
and Minnesota have added two-fac-
tor authentication, which uses a sec-
ond passcode to enhance security,
er rs
nal district, says Mr. Hall. If bad ac-
tors were to improperly modify the
reliably audited, should there be alle-
gations of machine manipulation,”
the report said.
rules, such as deliberately spreading
disinformation about how to cast a
ballot. In 2016, for example, some
records for, hypothetically, 10% of a In March, Congress allocated $380 Twitter accounts spread messages

Many states require that voters
register in advance and provide in-
formation such as name and party
affiliation. Those details are stored
say officials from both states.
Meanwhile, states have a low-tech
alternative available if poll workers
can’t verify someone’s eligibility: The
m e
bloc of voters, he says, those people million for states to upgrade their encouraging Democrats to vote by
might not complete a provisional election systems. And some states text, which isn’t allowed in any state.
ballot and leave without voting— are already moving away from pa- Those messages included photo-
which, he worries, theoretically perless machines. Even before that shopped images that looked similar

in voter-registration databases. voter fills out a provisional ballot might swing the race to a certain federal funding was available, Vir- to genuine material from Hillary
The databases generally aren’t that includes some personal informa- candidate. ginia fully retired its paperless, Clinton’s campaign. The company
connected to the machines used to tion, and officials figure out the touch-screen electronic voting ma- worked to remove those tweets after
m rp

tabulate votes. But some experts

worry about whether hackers might
try to break into the databases and
alter the data, making it seem as
though some people aren’t allowed
voter’s eligibility later, often after
Election Day.
Still, some observers worry that
there may be a problem with provi-
sional ballots that hackers could try
co Fo
2. Paperless voting machines
could fail—and there aren’t
always paper backups that could
provide a paper record of votes
cast if technological issues arose.
chines ahead of its November 2017
election. Other states, such as Penn-
sylvania and Louisiana, have begun
news reports identified them. It later
said those posts didn’t have “obvious
Russian origin.”
the replacement process.
Some state election officials em- Ms. Corse is a former intern for

to vote—potentially leading to big to exploit. Those ballots may take a Paperless machines—which at phasize that electronic voting ma- The Wall Street Journal. She can
confusion at polling places. while to fill out, which could lead to least one county in each of 13 states chines generally aren’t connected to be reached at reports@wsj.com.

How AI Can Help Stop Hackers rity and technology budget by tasks,” he says.
more than $200 million this
year.
More than 100 companies
currently use Watson for cy-
main names of websites and IP
addresses associated with the
devices they use for hacking.
Continued from the prior page Litan says. identity theft. About three bersecurity. When hackers leave all those
so much data out there—it’s Mr. Beranek says many U.S. years ago, Inter-
easier to train the system,” says GETTING DETAILED DATA ON consumers haven’t been ex- national Busi-
Companies are theLike most AI,
technology
traces, “you create a behavior
footprint that you leave behind
CrowdStrike’s director of prod- USERS posed to biometric technology, ness Machines using AI to help took years to that is unique,” says Chris Bell,
uct marketing, Jackie Castelli. Organizations in a range of and recommends organiza- Corp. started
One big hurdle for this ap- fields are trying to keep unau- tions that use it address con- training its Wat-
them determine develop countered
and en- chief executive of Diskin Ad-
vanced Technologies.
n-

proach to identifying malware thorized users out of their sys- cerns and questions that cus- son AI system which security bumps along the The firm uses machine
is false positives: Currently, tems by combining machine tomers might have. Many on cybersecu-
some AI systems classify a lot learning with biometrics— banks, for example, offer on- rity, with the
alerts are most way. For exam-
ple, Watson at
learning to analyze these foot-
prints, determine who is behind
of benign programs as threats, studying physical information line explanations about how it goal of helping important. one point con- an attack and who their next
no

which is a big problem given
how many attacks companies
face and how much time it can
take to investigate each lead.
But most security vendors that
focus on laptops, mobile
phones and other devices are
working on the problem, Ms.
Enlisting AI
Few organizations show no
interest in deploying AI for
cybersecurity
Yes, we're already
12% doing this extensively
about users, like fingerprints
and voices.
With biometric systems,
people access services by talk-
ing or scanning a part of their
body instead of entering a
username and password. Ma-
chine learning can be used to
analyze small differences in
these characteristics and com-
pare them to data on file, mak-
ing verification precise.
For instance, financial-ser-
vices firms such as Fidelity In-
vestments, JPMorgan Chase
& Co. and Charles Schwab
Corp. have deployed biometric
technology for customer ser-
works and how they use en-
cryption to protect stored bio-
metric data.
SIFTING THROUGH ALERTS
A typical large corporation
receives tens of thousands of
security alerts each day warn-
ing about possible malware,
newly discovered ways to ex-
ploit security flaws and ways
to remediate threats, accord-
ing to cybersecurity experts.
So, companies are investing
in AI to help determine which
alerts are most important, and
then automate the responses.
Companies “can’t handle all
security teams cluded that the victims may be.
manage the in- word “it” was The technology is still in the
flux of threat in- the name of the early stages, but customers in
formation. The system combs most dangerous malware, be- the aviation, utility and finan-
through alerts, recognizes pat- cause it appeared so fre- cial-services industries have
terns and determines things quently in malware research, used it to spot pending attacks
such as what malware is in- Mr. Lodewijkx says. and automatically block IP ad-
volved, whether it is related to dresses associated with crimi-
previous attacks and whether TRACKING DOWN ENEMIES nal groups, according to Mr.
the company is being specifi- One common struggle for Bell.
cally targeted. That way, secu- data-breach victims is figuring
rity teams can focus on the out who attacked them, be- Mr. Janofsky is a reporter
most likely threats and put the cause criminals and nation- for WSJ Pro Cybersecurity in
rest aside. state hackers obfuscate their New York. He can be reached
“We want to use AI to do all identity. Some cybersecurity at adam.janofsky@wsj.com.
the investigative work and es- researchers and analysts be-
sentially give the analyst a re- lieve machine learning can be
searched case,” says Mr. used to attribute attacks, which

Yes, we're already

doing this on a
27% limited basis
Yes, we're adding
machine learning to
our existing security
22%
analytics tools on a
test basis
12%
Yes, we're currently
engaged in a project
for deployment
Yes, we're planning a
8% project for deployment
No plans, but we're
12% interested in deploying
No, we're not
6%
interested
Don't know | 2%
Source: Enterprise Strategy Group survey of
412 cybersecurity professionals at
organizations with at least 500 employees in
North America and Western Europe,
conducted in April 2017
THE WALL STREET JOURNAL.
vice that scrutinizes hundreds
of voice characteristics, such
as the rhythm of speech.
Nuance Communications
Inc., which develops speech-
recognition software used in
mobile phones, has started to
incorporate behavioral biomet-
ric information, such as a per-
son’s vocabulary, into its ma-
chine-learning algorithms.
When voice and behavioral
data are combined, the system
is precise enough to tell identi-
cal twins apart, says Brett Be-
ranek, director of security
strategy at Nuance. That is be-
cause characteristics such as
vocabulary and frequency of
pauses will differ even if peo-
ple’s voices sound the same.
One hurdle for biometric
technology is selling users on
the idea. Researchers at the
University of Texas at Austin’s
Center for Identity have found
that many consumers are wary
of biometric authentication be-
cause of concerns about pri-
vacy, government tracking and
the security alerts, and they’re
missing things that are really
important,” says Gartner’s Ms.
Litan. “If you look at almost all
the data breaches that took
place in the last 10 years,
there’s a security alert that no-
tified them, but it was buried
at the bottom of the list.”
For example, the breach an-
nounced by Equifax Inc. in
September 2017 was partly
blamed on a flaw in the
Apache Software Foundation’s
Struts software program. A
patch for the vulnerability was
issued several months before
the incident at Equifax oc-
curred, but the company failed
to address the issue, The Wall
Street Journal reported. The
breach compromised personal
information belonging to
about 147.9 million consumers.
A spokeswoman for Equifax
said in an email that the com-
pany has since hired a new
chief information-security offi-
cer and chief technology offi-
cer, and has increased its secu-
Lodewijkx, adding that IBM can help defend against them
determined that its own secu- and prepare for future inci- CYBERSECURITY
rity analysts spend about 58% dents. Join the premium
of their time doing repetitive Security systems can mine membership services
work such as studying alerts. and analyze information on designed for executives.
“We’re aiming to take all of registries and online databases
that 58% away from the ana- to find clues about the infra- Subscribe at wsj.com/pro/
lyst, so they’re able to deal structure that criminals set up cybersecurity
with the uniquely human to launch attacks, such as do-
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THE WALL STREET JOURNAL. Wednesday, September 19, 2018 | R3

CYBERSECURITY SOLUTIONS

FROM THE FRONT

LINES TO THE
BOTTOM LINE
Raytheon leverages decades of cyber expertise with
government, military and intelligence customers to
enable businesses to mount an advanced defense
against increasingly sophisticated cyber threats.

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ly
on Raytheon.com/cyber
us l,

@RaytheonCyber
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Raytheon Cyber
ci on
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co Fo
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© 2018 Raytheon Company. All rights reserved.

 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.
R4 | Wednesday, September 19, 2018
Let’s Redo User Agreements
We click on them without
thinking. It’s time to fix that.
BY ALEXANDRA SAMUEL
ACCEPT. AGREE. SUBMIT.
I’ve lost count of how many times
I’ve clicked on buttons like these,
agreeing to online terms of service
that I haven’t actually reviewed. I’m
hardly unusual: According to a 2017
survey by Deloitte, 91% of consumers
routinely accept online service
agreements without actually reading
them.
What might seem like a sensible
way of saving time turns out to be a
big problem when we suddenly dis-
cover what we’ve agreed to. Cam-
bridge Analytica’s abuse of Facebook
users’ data took the public by sur-
prise in part because so few people
knew that Facebook’s terms of ser-
vice allowed third-party developers
to access not only their data, but
their friends’ data too.
With so much of our personal
data, communications and creative
output now flowing through online
Hackers’ Prime Target: Your Mind
‘Social engineering’ attacks get employees to give up valuable information
BY ROBERT MCMILLAN
OFTEN IT BEGINS with an innocu-
ous-seeming email from an internet
domain that closely resembles the
victim’s. The message may appear to
come from the company’s chief exec-
utive or another senior executive.
“Are you at your desk?” it asks. “I
need your help with something.”
Only after the conversation has
begun will scammers ask for what
they really want—a transfer of
money. But by then it is often too
late. The victim believes he’s email-
ing his boss and makes the payment.
Security pros call this social engi-
neering, and it is replacing malicious
software as the weapon of choice for
cybercriminals. Social engineering is
a bit of a catchall phrase, but it is
happening anytime hackers trick em-
no
ployees into sharing intelligence that
helps the hackers find vulnerabilities
in company systems and carry out
attacks. In addition to increasingly
personalized phishing emails, it of-
ten involves phone calls in which the
criminals trick employees into hand-
ing over private information or ac-
count passwords. Some employees
have been tricked into wiring mil-
lions of dollars to offshore bank ac-
counts controlled by the thieves.
“Social engineering is essentially
the easiest tool in the hacker’s tool-
belt,” says Kathryn Sherman, a su-
pervisory special agent with the Fed-
eral Bureau of Investigation. “All the
information they need is available to
them free online,” she says, because
corporations have put more of our
personal data online. “Less-technical
hackers are using it to gain access to
companies and are defrauding our
economy for billions of dollars.”
Today about a third of all cyberat-
tacks start with social engineering,
according to research by Interna-
tional Business Machines Corp. and
the Ponemon Institute. Five years
ago the number was 19%.
Social-engineering attacks that in-
clude a detailed fraudulent business
email are responsible for $12.5 bil-
lion in losses, the FBI says.
Behind the push
A few things are pushing social
engineering to the forefront of on-
line fraud. Companies like Apple Inc.
and Microsoft Corp. have invested
billions in improving the security of
their products, and consumers have
moved much of their data to cloud
computing services, making conven-
tional hacking less effective.
“Over the past five years they
have made hardware and software
really difficult to break,” says Chris-
JOURNAL REPORT | CYBERSECURITY
services, failing to read user agree-
ments amounts to giving up control
over both our privacy and our con-
tent. Online services have little in-
centive to develop policies that are
in their users’ interests when they
know that most users aren’t even
glancing at their terms of service.
As essential as it is for us to start
reading user agreements, that is only
going to happen if service agree-
ments are restructured so that
they’re easier for us to digest and
absorb—and if we have ways to opt
out of the most problematic provi-
sions. That means rethinking the en-
tire terms-of-service model—and pri-
oritizing what’s good for consumers.
Here are my ideal solutions for
on
companies to make their terms of
service comprehensible and con-
sumer-friendly.
us l,
No all-or-nothing agreements
Right now, user agreements are an
al a
e
all-or-nothing, take-it-or-leave-it
proposition. If you’ve concluded that
you must get access to a specific
ci on
platform (like LinkedIn) or online
service (like Google Drive), there is
er rs
m e
m rp
topher Hadnagy, chief executive of
Social-Engineer LLC, a consulting
company that helps companies un-
derstand these techniques. “Where
we’re seeing the big vulnerabilities
co Fo
is in social engineering.”
Ken Bagnall, a vice president at
the computer-security company Fire-
Eye Inc. says one reason these types
of attacks are so effective is their
use of what he calls psychological
authentication. “If you have the
name of their boss in an email, peo-
ple will have a huge emotional re-
sponse,” he says. “And all social en-
gineering is based on emotional
response.” The criminals are masters
of techniques like these, Mr. Bagnall
says. Phishing emails, for example,
n-
have 10 times the click-through rate
of marketing emails, he says.
Def Con demonstration
At the Def Con computer-security
conference in Las Vegas in August,
hackers made a sport of their social-
engineering techniques. In front of
an audience in a Caesars Palace con-
ference room, they called and
conned their way through the call
centers of a variety of large compa-
nies, probing for security weak-
nesses, says Mr. Hadnagy, the orga-
nizer of this particular event.
The contest is meant to raise
awareness about the problem, not to
do anything malicious, says Mr. Had-
nagy. “We demonstrate social engi-
neering by actually making calls to
people and getting random strangers
to give you pieces of information
they should never give you,” he says.
During the event, he says, hackers
asked their marks a range of things.
Who is the company’s caterer? What
Don't Be Fooled
The three most common social-engineering techniques, according to the FBI
SIM Hijacking
Scammers posing as you convince a mobile phone carrier to
transfer your phone number to a SIM card they own. With control
of your number, they can gain access to many of your accounts.
They could, for example, drain your online bank accounts.
Payroll Diversion
Scammers send you a phishing email to get you to give them
the username and password for your corporate payroll portal.
They log into the payroll portal and divert your payments to a
bank account they control.
Business Email Compromise
Pretending to be the CEO or CFO of your company, or one of the
company's suppliers or business partners, scammers send an
email or make a phone call requesting an urgent wire transfer to
pay what appears to be a legitimate bill.
Source: WSJ reporting
ISTOCK
no point in reading every paragraph
of the user agreement. Even if you
disagree with parts of the agree-
ment, your only option is to opt out
of using the service altogether. Few
of us are willing to do that.
A better approach would be to
make agreements modular, so that
we can opt out of specific provisions.
Suddenly, we’d have a reason to read
through agreements in their entirety,
so we could decide which parts we
do and don’t want to accept. Even
more important, our decisions would
give companies feedback on their
policies, so that they could organize
their business models around users’
actual preferences on key questions.
Write like a human
Even modular service agreements
will go unread if they are written in
the impenetrable legalese that is still
the norm in most terms of service.
These documents need to be rewrit-
ten so that they’re readable by non-
lawyers, or at least offer a readable
explanation for every provision. Eu-
rope’s General Data Protection Regu-
lation helps, because it requires that
operating system is on the em-
ployee’s computer? Will they click
on a webpage provided by the social
engineer? Most of the callers pre-
tended to be a co-worker calling in
for some help. Some pretended to be
with the company’s IT support
group. One said he was a reporter
working on a story.
Everyone who tried succeeded in
fooling the company they called to
some degree, Mr. Hadnagy says. And
more than half of the contestants
managed to con employees into vis-
iting websites that they shouldn’t
have, he says.
Companies are getting wise to so-
cial engineering, however. At FACC
AG, a maker of aircraft parts and
systems that lost millions in an at-
tack, education about social engi-
neering is now a priority, says An-
dreas Perotti, a company spokesman.
The company’s IT department
regularly sends out information on
new scams and takes steps to edu-
cate new hires on this topic too, he
says. “It is important to incorporate
this education in the daily work life,”
says Mr. Perotti.
Other companies are starting to
factor social-engineering training
into their compensation plans, says
Dave Burg, a cybersecurity executive
with the professional-services com-
pany Ernst & Young LLP . Employees
who do well in phishing tests, for ex-
ample, get paid bonuses. Those who
consistently fail them can face sanc-
tions or even termination, he says.
Mr. McMillan is a reporter for
The Wall Street Journal in San
Francisco. He can be reached at
robert.mcmillan@wsj.com.
THE WALL STREET JOURNAL.
privacy policies be written in plain
language. Now we need to ensure
that every part of a service agree-
ment adheres to that standard.
For instance, YouTube asks us to
“affirm, represent, and warrant that
you own or have the necessary li-
censes, rights, consents, and permis-
sions to publish Content you submit;
and you license to YouTube all pat-
ent, trademark, trade secret, copy-
right or other proprietary rights in
and to such Content for publication
on the Service pursuant to these
Terms of Service.” Instead, it might
simply say, “You guarantee that this
content is yours to post, and you’re
allowing us to display it on our site.”
(YouTube declines to comment.)
Some third-party software is try-
ing to fill the gap for now. Terms of
Service; Didn’t Read provides a
browser extension that offers an
analysis of terms of service from
about a hundred sites such as Face-
book, YouTube and SoundCloud.
Once you install the extension, you’ll
see a little colored beacon in your
browser bar whenever you visit one
of the sites the extension has rated,
letting you know you can click for an
explanation and rating of that site’s
terms. I’d like to see an expanded
version that can explain any terms of
service that pop up on my screen.
Learn from the past
A modular approach would also
make it easier for people to read
terms of service if we knew which
provisions we’ve agreed to in the
past and which we’ve rejected.
Imagine this: You find a new so-
cial network that you want to join,
and it has the usual three-page, 40-
clause user agreement. But you’re re-
viewing this agreement using a
.
browser extension that records the
ly
parts of agreements you accept and
which ones you veto.
So, as you’re looking over this so-
cial network’s deal, any provision
that is substantially similar to some-
thing you’ve previously approved is
presented in green, and anything
that is similar to something you’ve
previously rejected is marked in red.
If there are provisions that don’t
look like anything you’ve seen be-
fore, those are highlighted in yel-
low—so you can focus your attention
on those. It is far more realistic for
people to read terms of service when
Mnemonic drawings like this one, along with written hints, are one way
to remind people of passphrases they’ve been assigned.
A Call for Passphrases
Two researchers have a way to make them a reality
BY HENRY WILLIAMS
WE ALL KNOW the drill: When
signing up at a website, you’re told
to choose a password. It has to be
at least a certain number of char-
acters. It must contain letters and
at least one number and perhaps
at least one special character. Oh,
but some special characters aren’t
acceptable.
The death of complicated pass-
words—which are both hard to re-
member and not that secure—has
been forecast for years, but reality
hasn’t quite caught up yet.
Now, however, two researchers
have developed an idea for replac-
ing passwords with more-secure
passphrases that people will actu-
ally remember and use.
Kevin Juang, a former doctoral
student at Clemson University, and
his co-author and adviser, Joel
Greenstein, have created a working
prototype of an online system for
websites and their registered users
to replace passwords with ran-
domly generated passphrases that
in theory, in combination with
other cues, will be much easier to
remember and to enter accurately.
Passphrases have been dis-
cussed in online-security research
for over 30 years, but most web-
sites and apps still use passwords.
Partly, that’s because long pass-
phrases are harder to type, leading
to more login failures, but it’s also
because users tend to pick phrases
from common sources, likes song
lyrics, making them easy for hack-
ers to figure out.
People also sometimes use a
passphrase on more than one web-
site, or use a certain word repeat-
edly to make the passphrase even
easier to remember.
The prototype system created
by Drs. Juang and Greenstein gen-
erates series of unrelated, simple
words—drawing from a customized
list of about 10,000—that, as it
turns out, are quite secure.
THE WALL STREET JOURNAL.
they can concentrate on the few
parts that really deserve their atten-
tion.
Find friends with similar
tastes
Just as Amazon and Netflix can
suggest what you’d like to buy or
watch based on what users “like
you” are doing, a smart terms-of-ser-
vice system would be able to antici-
pate your preferences based on how
similar people respond to specific
agreements and provisions.
Whenever we visit a site, a third-
party data-collection service would
track which clauses in a terms-of-
service agreement we agree to, and
which we reject. (Before you worry
about privacy concerns: The collect-
ing would be handled by a disinter-
ested nonprofit with no stake in sell-
ing user information.)
Then the collection service would
figure out which other users are sim-
ilar to us based on choices we’ve
made. From there, the service might
tell us that “Other people who chose
not to share their location data re-
jected this clause about getting up-
dates by email.” It would make the
work of reading terms-of-service
agreements a lot easier.
How to get there
Creating a system of modular, cus-
tomizable, readable and responsive
agreements is a big job, and it will
require big changes to the legal,
technical and customer-service ap-
proaches used by online platforms.
But the Cambridge Analytica scan-
dal has made it clear that companies
face huge public-relations and finan-
cial risks when users don’t have a
clear picture of how their data is be-
ing used, and users will never get
that clear picture as long as terms-
of-service agreements remain long
and unreadable.
Offering better user agreements
could and should become a competi-
tive advantage for companies. In-
deed, there is no better way for com-
panies to show they care about users
than to give them direct and granu-
lar control over what they agree to.
That is something I’d sign up for.
Ms. Samuel is a technology
researcher and the author of
“Work Smarter with Social
Media.” Email reports@wsj.com.
KEVIN JUANG
Part of that strength comes
from the system choosing the
words for you
Each passphrase is 24 charac-
ters in length. A sample pass-
phrase from their research was
“weak parade of chemistry.”
“There are probably multiple
people who would have said, ‘I love
Ariana Grande’ as their passphrase,
if asked to create their own,” says
Dr. Greenstein, now an associate
professor emeritus at Clemson.
“Hackers could take advantage of
the predictability.”
Making a passphrase random is
only half of the solution, though.
The other half is making the
phrase easy to remember at log-in.
Many websites obscure the user’s
password as it is typed, which
makes it that much harder both to
remember and to type it correctly.
“The physical act of typing in
the passphrase is a huge issue,”
says Dr. Juang, who now works for
SunTrust Banks as a user experi-
ence research manager.
To help people remember their
passphrases, the researchers rec-
ommend that websites give their
users hints. One way to do that is
to reveal several passphrases, let-
ter by letter, as the user begins to
type. The user will recognize which
of the passphrases is correct and
then be able to remember the rest.
Another hint that websites can
offer is what Dr. Juang calls a vi-
sual mnemonic—a simple drawing
that suggests to the user what their
passphrase is. The picture would
pop up as a user starts logging in.
As an additional layer of secu-
rity, Drs. Juang and Greenstein
suggest using their passphrase sys-
tem in combination with a pass-
word manager, a service that
stores multiple complex passwords
for its customers.
Mr. Williams is a deputy editor
for The Wall Street Journal in
New York. He can be reached at
henry.williams@wsj.com.
 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.
THE WALL STREET JOURNAL.
Why You Need a VPN—and How to Choose One
Everybody’s snooping
on your internet traffic.
Here’s how to stay
hidden.
BY DAVID PIERCE
ON THE INTERNET, you never
know who’s watching. So
maybe you should assume it is
everyone: hackers, Google,
your internet provider, the
person next to you at Star-
bucks. The eyes are every-
where.
Your best defense? Camou-
flage. By using a virtual private
network, or VPN, you can keep
your activity and data far more
secure. Once used mostly for
remote workers to access their
office networks, VPNs have be-
come a tool more and more
people use—or should use. A
VPN can protect you from
snooping hackers on public
Wi-Fi networks in places like
airports or coffee shops, and
even keep your service provid-
ers from accessing and selling
your web-browsing and app-
usage data.
You don’t need it on all the
time unless you’re Jason
Bourne or if everything you do
is classified. If you’re careful to
use secure websites and apps,
you don’t have to turn it on
during those times, either. And
since Netflix, Hulu and other
streaming services often block
VPNs, you’ll likely leave yours
off by default.
But privacy matters more
when communications involve
sensitive health, family or fi-
nancial matters. In those cases,
it is better to be overly cau-
tious and turn on the VPN—
just clicking and disappearing
from view.
A secure line
Imagine you’re in a coffee
shop, connecting to its open
Wi-Fi network to get some
work done while you sip a
dirty chai. As you browse, ev-
erything you do is being sent
through the cafe’s router,
which anyone in that coffee
shop could be watching. It is
shockingly easy for a hacker to
tap into a public network and
intercept the bits flowing
through it. They can even in-
ject malware onto your device
by intercepting your internet
traffic before it gets back to
your machine.
Wanted: Cybersecurity Skills
Three ideas for solving the shortage of employees who can do the job
BY JANAKI CHADHA
THE U.S. faces a cybersecurity
skills gap.
As hacking and other cy-
berthreats escalate, experts
agree that the U.S. lacks
enough skilled cybersecurity
workers to meet the chal-
no
lenge. There are currently
over 300,000 unfilled cyberse-
curity jobs in the U.S., accord-
ing to CyberSeek, a career
website focused on cybersecu-
rity. World-wide, meanwhile, a
2017 study from the Center
for Cyber Safety and Educa-
tion forecasts a 1.8 million cy-
bersecurity worker shortage
by 2022.
Two common themes
emerge from proposals being
discussed in policy circles to
address the skills shortage in
cybersecurity: attract more
motivated people, and train
them faster.
Scott Shackelford, chair of
the cybersecurity program at
Indiana University, Blooming-
ton, says one big cause of the
shortage is the lack of a fo-
cused talent pipeline. To train
more cybersecurity workers
and make them available to
local government and other
organizations, he proposes a
“Cybersecurity Peace Corps.”
The model would be similar
to the Peace Corps and Ameri-
Corps programs, he explains,
but would be specific to cy-
bersecurity jobs. The program
would place workers with
nonprofits and other organi-
zations that couldn’t afford
them otherwise, and pay for
their salaries and training, Dr.
Shackelford says.
“On the one hand, you’re
actually helping a lot of in-
need stakeholders that just
frankly don’t have enough re-
sources” to put toward cyber-
security issues, he says. “It
would also help build out this
pipeline, ideally pretty
JOURNAL REPORT | CYBERSECURITY
If, however, you turn on a
VPN before you start browsing,
your activity will be far better
protected. A VPN creates a
“tunnel” between your com-
puter and the service you’re
connecting to, using its soft-
ware to make your connection
direct and private. Once this
tunnel is established, a VPN
encrypts all of the data it
sends to you and receives from
you through the tunnel. Even if
the coffee-shop hackers de-
cided to snoop on your data,
they wouldn’t see anything
they’d understand.
Because your VPN provider
is actually accessing the inter-
net for you, the sites you visit
won’t receive accurate identi- on
fying data like your location or
IP address. No matter where
you are, the internet will see
your traffic as coming and go-
us l,
ing from whatever VPN you’re
using. When I turn on my VPN
al a
e
in San Jose, Calif., my IP ad-
dress jumps to Newark, N.J.
Good luck finding me.
ci on
This kind of location shift-
ing has been key to the rise of
VPNs. David Gorodyansky,
chief executive at popular VPN
maker AnchorFree, says the
er rs
company’s Hotspot Shield VPN
often sees huge spikes in use
during uprisings in countries
like Turkey and Egypt, since
m e
the tool allows users to access
sites that are blocked in the
country. But even in everyday
m rp
use, it can be a way to foil
marketers and sometimes gain
benefits like cheaper plane
co Fo
A Costly Gap
The effects of the cybersecurity
skills gap cited most by cyberse-
curity professionals
n-
Increasing workload on existing
staff
63%
Hiring and training of junior
employees rather than people
with the appropriate level of
cybersecurity skills
41%
Cybersecurity staff time is spent
disproportionally on high-priority
issues and incident response,
with limited time for planning,
training or strategy
41%
Source: Survey by Enterprise Strategy Group
and the Information Systems Security
Association of of 343 cybersecurity
professionals and ISSA members, conducted
in August and September 2017
THE WALL STREET JOURNAL.
quickly.”
While such a body would
require an act of Congress,
and its chances of success are
unclear, the professor notes
that the Peace Corps and
AmeriCorps have had “a fair
amount of bipartisan sup-
port.” Dr. Shackelford also
says it doesn’t have to be a
national initiative.
“You could easily see a state
taking this on and experiment-
ing” in partnership with cor-
porate sponsors willing to give
employees time off “to serve
laudable causes,” he says.
Cyber ROTC
A similar idea, from
Michèle Flournoy, a former
senior official in the Defense
Department, is to create a
kind of cyber ROTC program,
modeled after the Reserve Of-
ficers’ Training Corps, in
which prospective commis-
sioned military officers go to
college tuition-free in return
Wednesday, September 19, 2018 | R5
if you can think of an obvious
reason why a company would
use your data, it probably is.
Mr. Walkiewicz recently led
a comparative study of popular
VPN products and picked a
handful of best options.
Hotspot Shield Elite from An-
chorFree, which costs between
$3.50 and $13 a month, scored
well across the board. (An-
chorFree commissioned the
study, though Mr. Walkiewicz
says that didn’t change the re-
sults.) The AV-Test team also
praised Private Internet Ac-
cess, a particularly anonymity-
focused product from London
Trust Media that costs be-
tween $3 and $7 a month;
NordVPN, a feature-rich op-
tion for $7 to $12 a month; and
LUC MELANSON
Freedome VPN, a simple and
secure option from F-Secure
that costs about $4 to $7 a
month.
These products are increas-
formation as possible—ideally ingly part of broader security
Spotty Coverage none at all. suites, which can also help
Most Americans surveyed by Wombat Security use a VPN on some store passwords and block ma-
device, but for any particular type of device fewer than half use a VPN Choosing your camo licious websites. Dashlane,
VPN options abound, all which began as a password
Do you use a VPN? On what devices do you promising more or less the manager, now includes a VPN
use a VPN? same thing. And if all you care powered by AnchorFree. Simi-
Corporate laptop about is avoiding the airport lar McAfee-powered tech is
I use a VPN or coffee-shop snoop, most will built into recent Samsung
on a corporate and/or 42% serve you. But a few simple smartphones as well, offering a
personal device rules will help you narrow the small amount of free usage be-
65% Corporate-issued mobile device field considerably. fore charging $1 a day or $2 a
You want a VPN that works month. Router maker Eero in-
29% on all of your devices, includ- cludes a VPN from Encrypt.me
ing your phone. And avoid ad- as part of its $99 annual Eero
19% 16% Personal laptop supported VPNs. They might Plus plan, which makes using a
.
41% operate like Facebook’s Onavo VPN at home even simpler
ly
Protect app, which was re- since it happens in your router.
cently removed from Apple’s The best VPN is the one you’ll
I don't know I know what a Personal mobile device
App Store because it was col- actually remember to use.
what a VPN is VPN is, but I
31% lecting users’ smartphone ac- Think of a VPN like the cur-
don't use one
tivity. tains in your house. Mostly
Source: Wombat Security survey of more than 1,000 adults “Pretty much all VPNs claim they’re open, the light stream-
in the U.S., conducted in May 2017 THE WALL STREET JOURNAL. they store no data,” says David ing in, but when you need
Walkiewicz, director of test re- them closed you’re glad
tickets, since airlines and other you’re up to, your VPN pro- search at AV-Test, an indepen- they’re there. As we spend
vendors can use your location vider can. No matter which dent IT-security research firm ever more of our life and work
and profile to set prices. one you choose, you’re placing based in Germany. But to some online, we need a way to close
Using a VPN doesn’t mean your faith in the company’s degree, he adds, “all compa- the curtains anytime. With a
you can eschew all other good ability to keep your activity nies store data.” good VPN, all that takes is a
security practices, of course. private. Some VPN makers Indeed, sometimes compa- tap.
You should still set strong promise to store only essential nies collect a little bit of data
passwords and change them data, but that word is often but don’t associate it with you. Mr. Pierce is a Personal
often, use multifactor authen- used loosely. Others sell your Other times they’re collecting Technology columnist for
tication, access secure HTTPS data, trying to make advertis- tons of data and selling it to The Wall Street Journal.
websites, and everything else ing dollars. You want a VPN advertisers—or selling ads He can be reached at
you’d normally do to keep that stores as little of your in- against it. As a rule of thumb, david.pierce@wsj.com.
yourself safe online. If you
visit a shady website and give
it your credit-card info, your
VPN can’t stop you.
You should be rigorous in
choosing a VPN, too, because
even though other sites can’t
find out where you are or what
for years of military service.
In a cyber ROTC, college
students in computer science
and related subjects could at-
tend tuition-free in exchange
for a few years’ service in
public-sector areas that need
a large cyber workforce, says
Ms. Flournoy, now a fellow at
Harvard University’s Belfer
Center for Science and Inter-
national Affairs. This could
help bring in young people
who might otherwise see a
role in cybersecurity or com-
puter science as far out of
reach, she says.
Financial incentives
A bill introduced in Con-
gress in 2017 aims to establish
tax breaks for employers that
develop training programs for
cybersecurity jobs. Companies
are increasingly setting up
their own programs to train
workers in cybersecurity jobs,
many of which require certifi-
cation in skills that aren’t
taught in college.
The New Collar Jobs Act, if
successful, could increase
available training and enlarge
the workforce. It would also
offer student-debt relief for
people choosing cybersecurity
jobs. For example, the bill
would cancel as much as
$25,000 in loans for people
who hold a cybersecurity job
in an “economically distressed
Maryland is a cybersecurity powerhouse.
area” for at least one year.
The bill also would estab-
lish a tax credit of up to
Home to 11,600 IT businesses, 16 NSA/DHS
$5,000 per employee for com- Certified Centers of Academic Excellence in
panies that support the cost
of academic degrees or indus- Cyber Defense, the U.S. Cyber Command and
try-approved certification pro-
grams for workers. Companies the NSA, Maryland has proven itself to be a
that use these tax credits also
would get a bump in evalua-
secure neighborhood. Let’s talk business.
tion scores used for allocating
government contracts.
Open.Maryland.gov/cyber
Ms. Chadha was a reporting
intern for The Wall Street
Journal. She can be reached
at reports@wsj.com.
 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.

R6 | Wednesday, September 19, 2018 THE WALL STREET JOURNAL.

JOURNAL REPORT | CYBERSECURITY

Facial Recognition Goes Mainstream

Restaurants, airlines and others want to use the technology in everyday commerce. If, that is, customers let them.
broker, where it could end up
BY KATHERINE BINDLEY
being used by any number of
organizations. An insurer
AT CALIBURGER in Pasadena, might buy the data and use it
Calif., the fast-food franchise to determine things about a
restaurant is testing out a new person’s health and potentially
way for customers to pay: hav- deny them coverage.
ing their picture taken. “It is likely that some of the
When they’re ready to com- data that we have provided in
plete their order, they step in the past will come to haunt
front of a large screen at a ki- us,” says Arun Ross, a profes-
osk to let a facial-recognition sor in the department of com-
system snap their picture. If puter science and engineering
the system recognizes them, at Michigan State University.
the payment goes through. “We will discover it is provid-
CaliBurger is one example ing insights into our lives that
of how facial recognition is be- we never thought possible.”
ginning to make its way out of For its part, Cali Group, the
the realm of security applica- owner of CaliBurger, is still
tions—such as searching for working on its privacy policy
bad guys or unlocking our and terms of use. The company
phones—and into bricks-and- doesn’t have either yet, but
mortar retail and other areas Chief Executive Officer John
of real-world commerce. Miller says it won’t share fa-
Entertainment venues want cial-recognition data with

to speed customers through
the gate by scanning their
faces. Airlines are looking to
smooth out passengers’ travel
by letting them check bags and
do other tasks by taking a
selfie. Retailers want to send a
salesperson over to help cus-
tomers if a camera reads their
expression and suggests they
look annoyed.
But the technology faces a
big hurdle: consumer concerns.
Brendan Miller, a digital-busi-
ness analyst with research
firm Forrester, says most re-
CaliBurger is testing a system that allows patrons to pay at a kiosk that uses facial- recognition technology.
purchased a startup called
Emotient that uses artificial
intelligence to read people’s
expressions.
Now bricks-and-mortar
companies see an opportunity
to take that technology and
apply it in a new way—making
real-world retail more effec-
tive.
One area they’re working on
is personalization. Stores
might use the technology for
POPIQ
third parties: “We’re taking a
long time to test it and think
through all these issues.”
be able to enter venues by hav- ers and software developers to order suggestions at KFC to NEC’s Mr. Beroukhim says
ing their faces scanned. (NEC offer such technology, accord- catching jaywalkers to moni- that in its airport facial-recog-
is also working with a unit of ing to Joe Jensen, vice presi- toring how much toilet paper nition system, fliers would opt
CaliBurger’s parent company dent of the company’s IoT people use in public bath- in, and there would be some
to conduct the restaurant’s fa- Group and general manager of rooms. One popular park in the privacy controls.
cial-recognition test.) the Retail Solutions Division. capital uses face-scanning dis- For now, whether compa-
Another way real-world re- “It’s really how physical pensers that limit each person nies can acquire your biomet-
tailers want to bricks-and- to a two-foot length of paper ric data without first asking
use facial rec- mortar retail- every nine minutes. for consent—and what kind of
ognition is to ers can start to biometric data they’re allowed
figure out
NEC is working understand ‘Mission creep’ to collect—depends on where
what shoppers on a system that better what But the problem isn’t only a you live. The only states with
want when the patterns of be- potential Big Brother monitor- some requirements for permis-
would let air

.
tailers he speaks with are still opt-in loyalty programs so that stores don’t havior shop- ing us everywhere. Privacy ad- sions are Illinois, Washington

too nervous about the privacy
issues associated with facial
recognition and similar tech-
nology to personalize things
too much yet.
“That’s why we’re very
much still in beta modes, be-
cause of the concern and the
ly
a salesperson could greet cus- know who they travelers check pers have in vocates say our face prints and Texas, according to Mr.
tomers by name when they are. So, a cam- their store, so could ultimately be tied to per- Schwartz of the Electronic
walk in, tell them what dis- era and soft-
in, check their they can bring sonal profiles that are shared Frontier Foundation.
counts they’re eligible for, on ware combina- bag and more them better of- among companies and data Dr. Ross says that especially
what new products they might
like based on previous pur-
tion would
analyze peo-
with a face scan. fers,” says Mr.
Jensen. “We’re
brokers.
Even potentially benign
following the adoption of Eu-
rope’s General Data Protection
chases or speed them through ple’s appear- really just try- data collection has the poten- Regulation, he wouldn’t be
checkout by letting them pay ance to glean ing to under- tial for “mission creep,” says surprised if more companies
us l,

creep factor around tracking,”
he says. “The technology will
enable it, but consumers aren’t
caught up to the technology
yet.”
by taking their picture.
Some airlines are working
al a
e
on a similar plan to make
travel more frictionless and
convenient. NEC Corp. is
ci on
details about stand the be- Adam Schwartz, a senior staff and states adopt policies to
them—such as approximate havior of an anonymous attorney with the Electronic enhance privacy when it comes
age, gender and where they go shopper, versus trying to fig- Frontier Foundation, a non- to biometrics.
in the store—and then use that ure out if it is Suzie and Suzie profit group focused on digital “I think companies are be-
data to entice them with spe- did A, B and C.” privacy. After companies col- coming increasingly aware

Say cheese!
Big tech companies have
been putting resources toward
facial recognition for years:
working with carriers on a sys-
tem that lets travelers check
in, check their bag, access a
lounge or board their flight, all
with a face scan, says Raffie
er rs
cial offers. But facial recognition has to lect data for a certain purpose, that privacy is important,” he
For instance, a facial-recog- deal with a major issue: pri- they do “new and unexpected says.
nition system might be built vacy. In China, facial recogni- things with it,” he says.
into a digital display at the tion is already playing out in a For instance, a company us- Ms. Bindley is a Wall Street
front of a store so that when very intrusive way. The tech- ing biometrics to give employ- Journal reporter in

Facebook has long used it to
suggest who should be
“tagged” in photos. Amazon
has sold its facial-recognition
Beroukhim, a senior vice presi-
dent.
A variation of that face-
based check-in technology,
m e
an older man walks in, it could nology is so widespread that ees access to a building could San Francisco. Email her at
showcase items he might be its uses range from providing later sell that information to a katie.bindley@wsj.com.
interested in, like button-down
dress shirts, as opposed to a

platform to law-enforcement also from NEC, will be used at selection of prom dresses,
agencies and others. Apple in- the 2020 Tokyo Olympic which might be shown to a
troduced Face ID with the Games. Athletes, employees, teenage girl.
m rp

iPhone X last year and in 2016 volunteers and the media will Intel is joining with retail-
co Fo

Anatomy of a Cryptojacking
How criminals are using hijacked computers to earn cryptocurrency

works newly minted digital currency, a proce-

BY CHRIS KORNELIS
MANY CYBERCRIMINALS are beginning to
move on from ransomware attacks in favor of
something called cryptojacking—taking over
the processing power of hijacked computers
and using it to earn cryptocurrency.
n-
dure called mining. But to earn that award, a
network has to be the first among many work-
ing on processing the same transactions to
solve a complex math problem.
Mining requires huge amounts of computing
power and energy. Cryptojackers avoid the cost
of running powerful server farms by tapping

According to a McAfee Inc. report released the processing power of the systems they

in June, cryptojacking is becoming a favorite
among cybercriminals because it’s “simpler,
more straightforward and less risky” than ran-
no
Securing
hack—including personal computers, game con-
soles and corporate servers.
Here, Donald Patterson, a professor of com-

somware or stealing data. puter science at Westmont College in Santa

Hijackers use a network of hacked comput-
ers to earn bitcoin or other cryptocurrencies.
These currencies use large ad hoc networks of
computers to process transactions. In ex-
Clean, Safe
Barbara, Calif., breaks down how cryptojacking
works.
Mr. Kornelis is a writer in Seattle. He can be

Drinking Water
change, they award computers on those net- reached at reports@wsj.com.

Netting a Profit | Cryptojacking step by step

STEP 1
Break In, Steal Processing Power
Cybercriminals entice users to download malware
that contains specialized crypto-mining software.
The software runs in the background, tapping idle
processing power to run the problem-solving
algorithm. Hackers can also use compromised
websites to tap into visitors’ computers.
STEP 4
Do the Work and Get Paid
A new block of bitcoin transactions is
processed about every 10 minutes. If the
cryptojacker is the first to solve the problem,
he gets paid for processing the transaction.
Payment for a single job is 12.5 coins. Bitcoin
is trading at about $6,400—an $80,000
payout. Cryptojackers typically pool their
resources into a large network that splits
these proceeds, plus much smaller transac-
tion fees.
Source: WSJ reporting
STEP 2
for Tommy.
Connect Devices in a Network
The malware is then used to connect the
machine to a network of hijacked computers. Every second Unisys monitors
A single PC might never solve the math
problem; pooled together in massive numbers, thousands of potential threats
they can match the processing power of
specialized crypto-mining computers. to critical infrastructure like
drinking water supplies around
the world. Which means parents
can focus on more important
things, like spending quality
time with their children. Find out
more at Unisys.com/Security.
STEP 3
Use the Processing Power
for Mining
The network of cryptojacked computers is
put to work solving the mathematical code.
This can be difficult to detect; slow
computer performance or a constantly Consulting | Services | Technology
running fan can be signs that a machine is
in the hands of a cryptojacker.
THE WALL STREET JOURNAL.