For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
DJIA 19890.94 À 26.85 0.1%
What’s
News
Business & Finance
he White House and law-
T makers appear poised to
take on another contentious
slice of immigration policy:
visa programs favored by
technology and other firms. A1
 Currency-market volatil-
ity is increasing as investors
and traders try to discern
the likely path of Trump
administration policy. A1
 The Fed held rates steady
while saying it remains on
track to gradually raise them
this year, but gave no hint on
the timing of the next hike. A2
 Facebook squeezed nearly
30% more revenue per user
in the fourth quarter, helping
send total revenue up 51%. B1
 Many new vehicles are
languishing at U.S. dealer-
ships as auto makers build
cars at a near-record pace
despite softening demand. B1
 VW’s bill in its emissions
scandal could total around
$23 billion after it agreed
to pay $1.2 billion to more
owners of diesel vehicles. B3
 New York state’s pension
fund fired a second employee
in December in connection
with a bribery scandal. B1
 Reckitt Benckiser is in
talks to buy baby-food firm
Mead Johnson in a deal val-
ued at about $16.7 billion. B3
 More consumers became
victims of identity fraud
last year than at any point
in more than a decade. B6
 A surge in Apple shares
boosted U.S. tech stocks
and helped lift the Dow
26.85 points to 19890.94. B11
 BlackRock is buying two
funds that invest in pipelines
and power plants. B10
World-Wide
 Trump urged Senate Re-
publicans to change the
chamber’s voting rules if Su-
preme Court nominee Gor-
such can’t attract the neces-
sary Democratic support. A1
 The White House con-
demned Iran’s recent missile
test launch and warned of con-
sequences including the pos-
sibility of new sanctions. A1
 Two Republican senators
said they would oppose the
president’s pick for education
secretary, placing DeVos’s
confirmation in jeopardy. A4
 Trump suggested he could
back out of an agreement
with Australia to take 1,250
refugees, saying in a tweet
that it is a “dumb deal!” A4
 The Senate confirmed
former Exxon Mobil CEO
Tillerson as secretary of
state by a 56-43 vote. A4
 GOP lawmakers began to
use a rarely deployed law
to rescind a number of
regulations enacted by
Obama late in his term. A3
 Ex-U.N. chief Ban dropped
his plans to pursue South
Korea’s presidency, leaving
the ruling conservatives
without a clear candidate. A7
 Israel began clearing an
illegal settler outpost in the
West Bank, even as it pressed
ahead with settlement plans
elsewhere in the territory. A8
 Fillon’s presidential race
was in crisis amid a probe
into whether the French pol-
itician’s wife collected a state
salary without working. A8
 Mexico’s government
said it would begin a 90-day
period of consultations to
draw up guidelines for talks
with the U.S. on Nafta. A9
CONTENTS
Banking & Fin. B6,B10
Business News. B3-4
Crossword............... A11
Equities..................... B11
Heard on Street. B12
Life & Arts....... A11-13
s Copyright 2017 Dow Jones &
Company. All Rights Reserved
* * * * * * THURSDAY, FEBRUARY 2, 2017 ~ VOL. CCLXIX NO. 26
NASDAQ 5642.65 À 0.5% STOXX 600 363.20 À 0.9%
Trump Pushes Senate on Court Pick
WASHINGTON—President
Donald Trump, one day after
introducing his nominee for
the Supreme Court, urged Re-
publicans in the Senate to
make a major change to the
chamber’s voting rules if
Judge Neil Gorsuch can’t at-
tract the necessary Democratic
support to win confirmation.
Mr. Trump’s suggestion that
Senate Republicans “go nu-
clear,’’ as the last-resort op-
tion is known, came amid early
signs the two parties were
headed for a major showdown
over the nomination.
In Ukraine, Conflict With Russian-Backed Separatists Flares
BRENDAN HOFFMAN/GETTY IMAGES
CAUGHT IN THE CROSSFIRE: Nadiya Volkova, 24, grieves over the body of her mother, Katya Volkova, 60, who was killed by shelling as she
walked to the store on Wednesday in Avdiivka, Ukraine. Artillery fire from separatists has increased in the Donbas region in recent days. A8
Currencies
Gyrate on
Mixed
Messages
Major currencies are posting
their largest swings in months,
highlighting a growing diffi-
culty for investors and traders
to discern the likely path of
Trump administration policy.
By Saumya
Vaishampayan in Hong
Kong, Ian Talley in
Washington and Chelsey
Dulaney in New York
The U.S. currency rallied in
the weeks following Donald
Trump’s election Nov. 8, reflect-
ing in part investor expecta-
tions that deregulatory, tax-re-
duction and stimulus plans will
push up U.S. growth.
But since the New Year, the
Please see DOLLAR page A2
INSIDE
ADDICTED
TO SOCIAL
MEDIA
BUSINESS & FINANCE, B1
Markets.................... B12 Book Publishers Are Printing More #@$% Than Ever
Opinion.............. A15-17
Sports....................... A14
Technology............... B5
U.S. News............. A2-6
Expletive-laden titles bedevil stores; ‘where shall we put this?’
Weather................... A11
World News........ A7-9
BY BRENDA CRONIN
> When first-time author Si-
mon Griffin started shipping
books to customers, his 9-year-
old daughter, Matilda, wanted to
help. But first Mr. Griffin had to
tell her the book’s title: “F—ing
Apostrophes.”
WSJ.com HHHH $3.00
10-YR. TREAS. g 4/32 , yield 2.466% OIL $53.88 À $1.07 GOLD $1,205.60 g $3.00 EURO $1.0769 YEN 113.25
By Byron Tau,
Siobhan Hughes,
and Brent Kendall
Wednesday, as allies began
running advertisements meant
to win support from centrist
Democrats. Their goal was to
While some Democrats said
they wanted to give Judge Gor-
such a hearing before deciding
how to proceed, at least five
Education nominee
hits GOP hurdle
A4
draw enough Democratic sup- said they would oppose the
Democrats are under pres- port to pass the 60-vote nomination, providing few signs Senate confirms
sure from their liberal base to threshold needed to move Su- that Republicans would pick up Tillerson at State
thwart the nomination and bit- preme Court picks forward. enough support. The GOP con-
ter about Senate Republicans’
blockade last year of former
Many conservatives joined
Mr. Trump in calling for Senate
trols 52 Senate seats while Dem-
ocrats have 48, meaning that Trump supporters
A4
President Barack Obama’s pick GOP leader Mitch McConnell (R., eight Democrats must agree to expect action
for the same court seat. Re- Ky.) to eliminate the 60-vote advance the nomination to meet A6
publicans are under equal hurdle, one of the few rules that the 60-vote threshold.
pressure from their conserva- give the minority party a say. Sen. Joe Manchin (D., W.Va.) Republicans seek
to undo regulations
tive base to push ahead. “It’s up to Mitch, but I said Judge Gorsuch had “im-
Judge Gorsuch held his first would say, ‘Go for it,’ ” Mr. peccable’’ credentials and A3
meetings with senators on Trump said. Please see COURT page A6
White
House
Takes On
Working
Visas
BY LAURA MECKLER
AND LAURA STEVENS
WASHINGTON—The White
House and lawmakers in Con-
gress appear poised to take on
another contentious slice of im-
migration policy: the visa pro-
grams favored by technology
and other companies.
A draft of an executive or-
der under consideration di-
rects the government to re-ex-
amine a range of visa
programs to ensure they pri-
oritize and protect “the jobs,
wages and well-being of
United States workers.”
The draft doesn’t single out
any industry, but many tech
firms are clearly rattled by po-
tential changes to the H-1B visa
program for high-skilled em-
THE FED’S UNEASY
ployees. Industry leaders argue
that foreign workers are needed
and have long lobbied for an in-
POLITICIAN
crease from the 85,000 such vi-
sas available each year.
The draft order, “if signed,
risks serious consequences for
US-based tech companies’
ability to hire elite global tal-
With monetary policy firmly in the political arena, Chairwoman Janet
Yellen is struggling to tamp opposition from the GOP and President Trump
ent,” Blake Irving, chief execu-
tive of GoDaddy Inc., said in a
LinkedIn post Wednesday. “To
be clear, the entire US econ-
BY KATE DAVIDSON Fed officials voted Wednesday to hold their omy is at stake with this draft
benchmark federal-funds rate steady after a order and tech leaders need to
Last year, as the Senate prepared to vote on two-day policy meeting, offering no hint about speak out on its dangers.”
a bill to audit the Federal Reserve’s interest- when they might move again or how President There are currently 500,000
rate decisions, Janet Yellen picked up her Trump’s economic proposals may affect the unfilled high-skilled IT and
phone and called Capitol Hill. path of rates this year. computer science jobs in the
Over two days, the Fed chairwoman spoke The political landscape has eroded for the U.S., Mr. Irving wrote.
with five Republicans, some of whom she Fed in recent years, and Ms. Yellen has strug- The order, if issued, would be
had never met privately since taking over at gled to confront the challenge. Once revered as the latest effort by President
the central bank, according to her public cal- the masterminds of the U.S. economy, Fed pol- Donald Trump to make good on
endar. She stuck to a script she had deliv- icy makers now face the most intense political his promise to preserve jobs and
ered many times, said a person familiar with scrutiny in a generation. The path of monetary put “America first.” It would
the calls: The bill could allow politicians to policy, which is emerging from a decade of also mark his fourth action on
interfere with Fed policy; academic studies basement-level rates, is being debated in the immigration, following moves
show countries with independent central political arena in a way not seen since the Paul on border security, deportations
banks have lower inflation; the Fed is al- Volcker era in the 1980s. and refugee admissions.
ready audited. The person leading the institution isn’t a At the same time, several
Ms. Yellen didn’t persuade them. Though politician—she’s a macroeconomist who spent congressional Republicans are
the Senate voted not to move forward with the most of her career at the Fed and in academia. Please see VISAS page A4
bill—a relief for the Fed—only one of the Please see YELLEN page A10
chamber’s 54 Republicans voted in the Fed’s  Trump travel ban shakes
favor.  Fed keeps interest rates steady........................... A2 businesses................................... B2
U.S. Warns of Reprisals
Oracle #1
After Iran Missile Test
BY CAROL E. LEE influence” in the Middle East,
AND MICHAEL C. BENDER National Security Adviser Mike
WASHINGTON—The White
House sharply condemned a
Flynn declared Wednesday:
“As of today, we are officially
putting Iran on notice.”
SaaS Enterprise
recent Iranian ballistic missile The pronouncement marked Applications Revenue
test launch and warned of con- a pivot away from the Obama
sequences including the possi-
bility of new U.S. sanctions, in
administration’s policy of dip-
lomatic engagement that led
1,000+ Employees Segment, 2015
a more confrontational ap- to a 2015 multinational nu-
proach to Tehran that lays the
groundwork for a potential
clear deal that has been de-
nounced repeatedly by Presi-
#1
early clash between the two dent Donald Trump and his
countries. aides.
Calling Iran a “destabilizing Please see IRAN page A8
#2
Oracle Salesforce
i i i
Cloud Cloud
14.5% 12.4%
“She gave me this look like teacher. “I said, ‘No, no, no, you
she caught me smoking or can’t have this in the play-
something,” said her father, who ground,’ ” Mr. Griffin said.
penned the pocket-size manual Mr. Griffin’s book is one of a
on the often-misplaced punctua- growing number of expletive- oracle.com/applications
tion mark. laden titles flooding bookstores Source: IDC “Worldwide SaaS Enterprise Applications Market Shares, 2015: The Top 15 by Buyer Size,”
As orders piled up, however, these days. Among them are doc #US41913816, Dec. 2016; Table 4. For the purposes of this report, SaaS enterprise applications include
the following application markets: CRM, engineering, ERP, operations and manufacturing, and SCM.
Matilda became excited and cookbooks (“Thug Kitchen: Eat Copyright © 2017, Oracle and/or its affiliates. All rights reserved.
wanted to take a copy to her Please see CURSE page A10
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
A2 | Thursday, February 2, 2017
Trump May Find Leviathan Hard to Tame
I
n a high-profile attack on
growth-killing red tape,
President Donald Trump
this week ordered that any
agency issuing a new rule
find two to repeal.
He will likely discover
that the only thing harder
than getting
something
done in Wash-
ington is get-
ting it undone.
Vast swaths
CAPITAL of rules are un-
ACCOUNT touchable be-
GREG IP cause Congress
ordered them
to be written
or the president himself de-
manded them. Finding rules
to repeal is a tedious and
time-consuming affair that
usually yields tiny savings,
mostly in reduced paper-
work. Ultimately, rules are
passed because they have
benefits, from cleaner air to
fewer terror attacks, that
voters or presidents aren’t
willing to forgo.
The first president to
tackle the leviathan was
Jimmy Carter who proposed
a “regulatory budget” to
limit the financial burden of
new rules. Every president
since has tried the same.
U.S. WATCH
MEDICARE
Private Plans to See
‘Moderate’ Rate Rise
Federal regulators proposed
slightly higher payments for in-
surers that offer private Medi-
care plans, a closely watched fig-
ure because of the increasingly
important role that the Medicare
business plays in companies’ bot-
tom lines.
The Centers for Medicare and
Medicaid Services estimated that
the Medicare Advantage rate
proposal represented a 0.25% in-
crease on average for 2018,
though the agency said insurers
would likely see overall revenue
increase about 2.75% as they de-
liver—and bill for—more intense
services.
The agency said the rates rep-
resented “moderate growth.”
Medicare Advantage plans are
offered by private insurers as an
alternative to government-run
traditional Medicare. The insurers
are paid by the federal govern-
ment.
—Anna Wilde Mathews
DELAWARE
Employees Are Held
Hostage at Prison
Two correctional employees
were being held hostage at a
maximum-security prison in Dela-
ware on Wednesday evening af-
ter inmates released two other
George W. Bush invited sug-
gestions from the public on
rules to repeal. Barack
Obama trumpeted two exec-
utive orders requiring fed-
eral agencies to “look back”
and kill off old rules that no
longer justified their cost.
None halted the relent-
lessly rising burden of regu-
lation. Perhaps Mr. Trump
will be different, but history
offers reason for skepticism.
In a sample of 50 of Mr.
Obama’s “look-backs,” 76%
achieved their savings by re-
ducing administrative costs,
such as converting to elec-
tronic from paper filing, ac-
cording to Cary Coglianese,
director of the University of
Pennsylvania’s Penn Program
on Regulation. Such costs
are trivial compared with
compliance and lost business
opportunities.
Often, the rules that get
repealed “nobody cares
about anymore: they aren’t
imposing any costs at all be-
cause things have moved
on,” Mr. Coglianese says. In
2004, for example, a rule
protecting consumers from
airlines’ deceptive airline
ticket sales was repealed. It
didn’t matter much because
airlines no longer owned the
prison workers, state officials
said.
The incident began after 10:30
a.m. Wednesday at the James T.
Vaughn Correctional Center in
Smyrna, officials said.
Inmates released one em-
ployee in the afternoon and an-
other in the evening, said Perry
Phelps, state corrections commis-
sioner. The first employee to be
released was treated at a hospi-
tal for non-life-threatening inju-
ries, officials said; they didn’t
have information on the other
employee’s condition.
Officials wouldn’t discuss a
possible motive of the inmates
who were holding the employees.
—Scott Calvert
PENNSYLVANIA
Water Warning
Issued in Pittsburgh
Roughly 100,000 people in
Pittsburgh were unable to drink
their tap water Wednesday with-
out boiling it first, over concerns
that the city’s water authority
had failed to adequately disinfect
part of its system. The agency is-
sued a boil water advisory Tues-
day after it discovered low levels
of chlorine at a reservoir and dis-
tribution facility.
The main concern was that gi-
ardia, a parasite, could enter the
water supply, but officials
stressed that they had not found
evidence that this had occurred.
—Kris Maher
U.S. NEWS
Relentless Rise
Total federal regulation has steadily risen despite efforts by every
president back to Jimmy Carter to eliminate wasteful rules.
Cumulative number of federal restrictions and dates of legislation
and presidential orders aimed at reducing regulations
1.2 million restrictions
Jimmy Ronald
1.0 Carter Reagan
0.8
0.6
0.4 Regulatory
Flexibility Act
0.2
0 costly rules.
1970s ’80s
Note: Federal restrictions as measured by the use of the words ‘shall,’ ‘must,’ ‘may not,’
‘required,’ and ‘prohibited,’ in the Code of Federal Regulations.
Sources: Mercatus Center (federal restrictions); Cary Coglianese (presidential actions)
major reservation systems.
Canada and Britain, which
have versions of Mr. Trump’s
“one in, two out” order,
don’t offer much prospect
for radical rollback.
“There were very few in-
stances where we repealed
regulation outright,” says
Jitinder Kohli, who ran
‘Bat Bot’ Swoops Onto the Scene
WHEN BATS FLY: Researchers have built a robot that swoops and dives like a bat, which could
aid efforts to understand how bats fly and offer safety improvements on certain drones. The
researchers, who described the project in the journal Science Robotics, call the flier Bat Bot.
DOLLAR
Continued from Page One
dollar has declined and volatil-
ity has picked up, driven by
statements by administration
officials that have been inter-
preted by investors as advocat-
ing a lower dollar.
The remarks, from Mr.
Trump and some important ad-
visers, have surprised some in-
vestors and pushed many trad-
ers to take a more-defensive
stance. Few analysts expect
quick clarity on Washington
policies that could settle the
dollar’s path, likely meaning
more unpredictable trading in
the months ahead.
“What markets are con-
cerned about now is volatility,”
said Mark McCormick, head of
North American FX strategy at
TD Securities. “People are stay-
ing in trades for shorter peri-
ods of time, and they’re not
taking as much risk.”
This week, a measure of vol-
atility in the Japanese yen hit
its highest level against the dol-
lar since August, while volatil-
ity in the euro has recently
touched its highest since July,
according to Thomson Reuters.
The ICE U.S. Dollar Index,
which gauges the value of the
dollar against a basket of six
currencies, notched daily moves
of 0.5% or greater nine times in
January, compared with four
such moves in October. The in-
dex last month posted its larg-
est decline since March 2016. It
is down about 2.4% for 2017.
CORRECTIONS  AMPLIFICATIONS
On Saturday, President
Donald Trump signed an execu-
tive order barring his appoin-
tees from lobbying their for-
mer agencies within five years
of leaving government service
and two presidential memoran-
dums, one shuffling members
of the National Security Coun-
cil and another ordering devel-
opment of a plan to defeat Is-
lamic State. A U.S. News article
Readers can alert The Wall Street Journal to any errors in news articles by
emailing wsjcontact@wsj.com or by calling 888-410-2667.
George Bill
H.W. Clinton
Bush
Barack
Obama
George W.
Bush public
nominations
of laws to
Clinton review
National
Performance
Review
’90s 2000s ’10s
THE WALL STREET JOURNAL.
Britain’s regulatory over-
seer from 2005 to 2009 and
is now with Deloitte Con-
sulting.
More often, he said, there
were more efficient ways to
carry out the rule. Britain
now mandates £3 of regula-
tory cost reduction for each
pound of cost increase, yet
In part, the moves reflect
hints, though far from defini-
tive signals, that the adminis-
tration supports a weaker cur-
rency—a stance that many
economists say would conflict
with policies the administration
has backed that would tend to
boost the dollar.
Other factors likely sowing
doubt in markets include ex-
pected battles between the
White House and congressional
Republicans, who hold the ma-
jority on Capitol Hill, over taxes
and spending. Fiscally conser-
vative lawmakers could help
stymie Mr. Trump’s infrastruc-
ture plans. There is also a fight
over border taxes, a policy that
could further enhance the dol-
lar’s strength.
President Trump, in an inter-
view with The Wall Street Jour-
nal last month, said the dollar
was too strong compared with
China’s currency. Peter Navarro,
head of the National Trade
Council, in an interview with
the Financial Times, accused
Germany of exploiting the euro
for competitive trade gains. The
president has vowed to label
China a currency manipulator, a
step some economists say likely
precedes new import tariffs.
While Mr. Trump seems to
want a weaker dollar against
some trade partner currencies,
most economists agree that his
economic platform could put
strong upward pressure on the
greenback.
“U.S. President Trump’s
rhetoric has been a key factor”
behind recent dollar weakness,
said David Bloom, a currency
Monday about the moves in-
correctly described all three
actions as executive orders.
The name of an Electronic
Arts Inc. mobile game, “Star
Wars: Galaxy of Heroes,” was
misstated as “Star Wars: He-
roes of the Galaxy” in a Tech-
nology article on Wednesday
about the company’s latest fi-
nancial results.
* *** THE WALL STREET JOURNAL.
its national auditor has Mr. Trump may not be im-
found that costs are so mune. He enacted a tempo-
poorly understood, it is un- rary ban on visitors from
clear what good the govern- seven mostly Muslim coun-
ment has achieved. For its tries over concerns that ter-
part, Canada’s regulatory re- rorists might enter the U.S.
duction program only covers The president also sus-
paperwork costs. pended the U.S. refugee pro-
Mr. Trump’s order re- gram for four months and
quires the costs of any new reduced the number of refu-
rule be fully offset by re- gees the U.S. will accept in
pealed rules in any given fiscal year 2017 to 50,000.
year, but has yet to specify How would this perform on
how to measure those costs. a cost-benefit test?
No cost estimate exists for Alex Nowrasteh, an immi-
many rules, and those that gration expert at the liber-
do haven’t been updated tarian Cato Institute, esti-
since the rules were passed. mates the average American
Mr. Trump’s order could has a one in 3.6 billion
provide a powerful prod to chance each year of being
agencies to look for old, killed by a refugee who be-
comes a terrorist, meaning
there is a small benefit from
Y
et the regulatory bur- the new rule. At the same
den will likely keep time, he puts the cost of Mr.
growing so long as the Trump’s order at $350 mil-
priorities of Congress and lion per life saved since
the president require it. Af- fewer immigrants make the
ter the Sept. 11, 2001, terror- workforce less efficient. By
ist attacks, Mr. Bush created comparison, federal guid-
an entire new federal depart- ance usually puts the statis-
ment with thousands of new tical value of a human life at
employees to counter terror- $10 million.
ism. Mr. Obama’s health care Which simply proves
and financial regulation laws that when a president’s pri-
required agencies to issue orities are at stake, the
thousands of rules regardless cost of regulation is seldom
of their costs and benefits. an object.
Fed Keeps
Interest
RAMEZANI, CHUNG, HUTCHINSON, SCI. ROBOT. 2, EAAL2505 (2017)
Rates
Steady
BY DAVID HARRISON
WASHINGTON—The Federal
Reserve said Wednesday it re-
mains on track to gradually
raise short-term interest rates
this year and gave no hint
about when the next increase
might come.
Following a two-day policy
meeting, officials voted unani-
mously to hold their bench-
mark rate steady in a range
between 0.50% and 0.75%,
while noting in a statement
some recent improvements in
the economy, including an up-
tick in consumer confidence.
strategist in HSBC Holdings
PLC’s Global Research depart-
ment. But any administration
desire for a weaker dollar “will
They lifted rates by a quarter
percentage point in December
and penciled in three quarter-
point moves in 2017.
likely be undone by his policy Investors hadn’t expected
mix,” which is likely to push the the Fed to move Wednesday
dollar higher, he said. and were looking for a signal
It is hard to know whether about its next meeting on
the new administration will ex- March 14-15.
plicitly pursue a weaker cur- Attention quickly turned to
rency, in part because its eco- Federal Reserve Chairwoman
nomic team still isn’t in place. Janet Yellen’s scheduled testi-
Traditionally, the top mony before Congress on Feb.
spokesman in Washington on 14 and 15. She could use that
the currency is the Treasury opportunity to offer an update
secretary, and Mr. Trump’s on the economy’s progress and
pick, Steven Mnuchin, hasn’t the central bank’s plans for in-
been confirmed yet. In confir- terest rates.
mation hearings, Mr. Mnuchin “Yellen will have ample op-
suggested the Trump adminis- portunity to adjust expecta-
tration would remain commit- tions as she likes” when she
ted to a strong dollar over the goes to Capitol Hill, said Tom
longer term, though he ac- Porcelli, chief U.S. economist
knowledged a strong dollar at RBC Capital Markets.
would harm the U.S. in the Minutes of the meeting, set
short term. for release Feb. 22, could also
The dollar’s twists and turns offer insight into the Fed’s in-
against the yen in the past two ternal deliberations.
days show how sensitive mar- For now, investors aren't
kets have become. expecting a Fed rate increase
During U.S. trading hours in March, placing the probabil-
Tuesday, the greenback almost ity of such a move at close to
fell below ¥112, hitting its low- 18%, according to CME Group.
est level in two months, after The new Fed statement
Mr. Trump accused Japan and came as the U.S. economy
China of persistently keeping shows signs of strengthening.
their currencies weak. Several officials have said the
The dollar recovered against labor market is operating at
the yen Wednesday, closing up close to full strength with ro-
0.4% in U.S. trading at ¥113.252. bust job growth keeping the
Japanese Prime Minister unemployment rate at 4.7%.
Shinzo Abe hit back, saying the Inflation has also moved
country’s economic policy was closer to the Fed’s 2% target.
aimed solely at raising domes- The Fed statement noted
tic inflation, and that U.S. criti- that “measures of consumer
cism “about inducing a cheaper and business sentiment have
yen misses the mark.” improved of late.”
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To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
THE WALL STREET JOURNAL.
Colleges in U.S. Retain Appeal Abroad
Freshman applications
remain strong, but Keeping Pace
International students remain interested in U.S. colleges, despite
schools worry about
unease over America’s immigration policy.
future enrollment Foreign-student freshman applications to major U.S. colleges,
BY MELISSA KORN
Foreign-student applica-
tions to major U.S. colleges for
the next academic year are
stable or even rising, allevi-
ating some fears that interna-
tional students wouldn’t con-
tinue to seek admission to the
country’s schools in the wake
of the election of President
Donald Trump.
The mood at admissions of-
fices across campuses remains
somber, though, after Mr.
Trump last week signed an ex-
ecutive order suspending im-
migration from seven Muslim-
majority nations, calling it a
needed move to keep terrorists
from entering the U.S.
A Wall Street Journal sur-
vey of 12 of the top 20 schools
for foreign-student enrollment,
including eight of the top 10,
found that nearly all received
more international applica-
tions for freshman admission
this year than last year.
While admissions officials
are expressing relief that pro-
spective students aren’t
spooked by anti-immigration
rhetoric during the presiden-
tial campaign, they warn that
the true test will come in the
fall, when and if foreign stu-
dents actually show up on
campus.
International student appli-
cations for freshman admis-
sion to the University of
Southern California, for in-
No Joke: Clown
Aims to Save
Big Apple Circus
Performer Bello Nock’s latest
high-wire act is a bid to rescue the
noted New York City troupe
BY CHARLES PASSY
In his three-decade career
as a daredevil-minded circus
clown, Bello Nock has done
everything from taking his
place atop a 70-foot sway
pole to riding a 5-ton ele-
phant—sometimes all within
a single show.
But now, the 47-year-old
performer, once hailed as
America’s top clown by Time
magazine, is looking to at-
tempt what might be his
most challenging feat yet:
bringing New York’s bank-
rupt Big Apple Circus back
to life.
Mr. Nock, who is based in
Sarasota, Fla., but has long
His plan comes amid
questions about the
survival of the circus
as an art form.
considered New York City a
second home of sorts, said
he plans to make a bid for
the circus’s assets as part of
a bankruptcy auction.
His plan comes at a time
when the long-term survival
of the circus as an art form
is under question, particu-
larly with last month’s an-
nouncement that the Ring-
ling Bros. and Barnum &
Bailey circus was closing af-
ter nearly a century-and-a-
half run.
That’s on top of the trou-
Republicans Seek to Undo Federal Regulations Under Obama
BY NATALIE ANDREWS
AND AMY HARDER
WASHINGTON—Republi-
cans lawmakers began to use a
rarely deployed law Wednes-
day to rescind a number of
federal regulations that for-
mer President Barack Obama
enacted during his last months
in office.
Under the Congressional
Review Act, the House and
Senate can vote by a simple
majority to overturn agency
change from a year earlier
Boston University
Duke University
Michigan State University
New York University
Northeastern University
Pennsylvania State University
University of California, Los Angeles
University of Southern California
University of Washington
–4.1
*As of Jan. 26, 2017; Michigan State is still accepting applications.
Source: the schools
stance, are up 3.7% this year to
8,233 students.
Katharine Harrington, vice
president of admissions and
planning, says she hasn’t
heard much concern from
overseas applicants since the
election. “But I can’t say that’s
predictive of what’s going to
happen in the future,” she
said.
There were more than
17,000 students at U.S. schools
from the seven affected coun-
tries in the 2015-16 academic
year, according to the Institute
of International Education,
and schools are scrambling to
account for them all.
bles that the Big Apple Cir-
cus has faced, despite its
four-decade history of enter-
taining audiences at Lincoln
Center and elsewhere
throughout the city. Big Ap-
ple officials have blamed the
company’s money troubles—
it has about $8 million in
debt—on the loss of corpo-
rate-booked shows in the
wake of the 2008-09 finan-
cial crisis.
Stampler Auctions, the
Florida company handling the
Big Apple auction, is accept-
ing sealed bids, with a mini-
mum good-faith deposit of
$50,000, through Friday. If
there are enough qualified
prospective buyers, a live auc-
tion will take place Tuesday.
Big Apple Executive Direc-
tor Will Maitland Weiss said
the deposit represents 10%
of the actual bid, which
means the bids must be at
least $500,000.
Any sale would have to be
approved by the U.S. Bank-
ruptcy Court. A representa-
tive for the court couldn’t be
reached for comment on
Wednesday.
Mr. Nock, who was a star
performer with the Big Ap-
ple Circus for many years,
won’t say how much he is
considering bidding or if he
has any backers helping fund
his effort. But he is vocal in
declaring that the Big Apple
Circus, which brought atten-
tion to the intimately scaled
single ring-style circus, is
too vital to the city’s cultural
life and the broader circus
world to remain idle.
rules passed in the last 60 leg-
islative working days, a period
that started in June. That is a
lower-than-usual threshold for
legislation in the Senate,
where 60 votes are often
needed.
The action is part of a
broader effort by the federal
government’s all-GOP leader-
ship to scale back regulations
that President Donald Trump
and his allies said place an un-
due burden on business.
Mr. Trump signed an execu-
U.S. NEWS
2015-16 2016-17
2.4%
3.0
–3.0
11.6
3.3
–1.5*
6.7
7.3
–2.9
5.4
–3.1
14.2
7.2
1.8
8.8
3.7
20.4
THE WALL STREET JOURNAL.
More than 125 educational
institutions have issued state-
ments in recent days con-
demning the executive order
and its potential chilling effect
on international enrollments—
particularly at the graduate
level. Ms. Harrington said the
federal government’s “fluid”
stance on immigrants from
various countries has made it
difficult to plan for incoming
students. “We don’t want to
give them any bad informa-
tion, but we don’t want to
give them false hope,” she
said.
International enrollment in
U.S. colleges reached a record
Bello Nock in 2013 before a performance of his show ‘Bello Mania’ in New York. Time magazine once called him America’s top clown.
Mr. Nock is likely to have
competition in his attempt
to acquire the Big Apple’s
assets, which include ev-
erything from the intellec-
tual property (as in the
name itself) to the circus
tents. Harry Stampler, pres-
ident of Stampler Auctions,
said he has fielded inqui-
ries from a half-dozen
other interested parties,
from live-entertainment
companies to hedge-fund
firms.
Even if Mr. Nock suc-
ceeeds in his bid, that
would just be the first step
in reviving the circus.
Mr. Nock, who has also
worked as an entertain-
ment producer, said he
would take a hard look at
keeping costs in line. “I
love steak, but I love trim-
ming the fat off it,” he said.
tive order Monday requiring
two regulations to be elimi-
nated for every new one cre-
ated. The order also capped
the cost of new regulations.
On Wednesday, the House
passed a resolution rescinding
two Obama-era regulations.
The first was an Interior De-
partment coal-mining regula-
tion that Republicans had said
was part of the previous ad-
ministration’s “war on coal.’’
The regulation set tougher
standards for water quality and
Schools Plan
For Extended Ban
Colleges around the nation
are generating contingency
plans as they assess the impact
of President Donald Trump’s ex-
ecutive order suspending immi-
gration from seven countries,
which could affect hundreds of
millions of dollars in tuition and
other economic activity for
these institutions.
“We’re basically modeling
the level of exposure we might
have if his executive order
stays in effect over the long
term,” said Mike Armini, spokes-
man for Northeastern Univer-
sity, which has 249 students
from the seven countries the
U.S. has designated as posing
an elevated risk of terrorism:
Iran, Iraq, Libya, Somalia, Sudan,
Syria and Yemen.
Mr. Armini said his school
in the 2015-16 academic year,
capping a controversial trend
that some say has crowded
out local candidates.
But as both public and pri-
vate institutions scramble to
find additional revenue
streams amid tight state fund-
ing and other financial pres-
sures, international students
have become a key money-
maker. Schools say there are
more than fiscal reasons for
diversifying their student bod-
ies, including exposing U.S.
students to different cultures
in preparation for postcollege
life in a global economy.
Despite the upward mo-
Mr. Nock during an awards ceremony at the 2011 Monte-Carlo International Circus Festival in Monaco.
requires companies to restore
streams more comprehensively
after mining activities.
The House also passed a
second resolution to eliminate
a Securities and Exchange
Commission regulation that
requires energy companies to
report payments they make to
foreign governments for the
rights to extract oil, gas and
minerals.
Supporters of the rule,
which was part of the Dodd-
Frank regulatory overhaul,
Thursday, February 2, 2017 | A3
has about 54,000 undergradu-
ate applications for 2,800 seats,
so admissions officers have
plenty of wiggle room to fill the
freshman class. “But obviously
there is an educational impact.
Something is lost when certain
countries aren’t represented on
campus,” he said.
There were more than
17,000 students from those na-
tions enrolled at U.S. universi-
ties and those students brought
$556 million into the U.S. econ-
omy, according to a U.S. Com-
merce Department calculation
done for the Institute of Inter-
national Education.
The schools with the largest
concentration of students from
those countries include Texas
A&M University, which has 271,
and the University of Central
Florida, with 224, according to
College Factual, a data analytics
website for higher education.
Amy Smith, spokeswoman
for Texas A&M, said the school
mentum, admissions officials
have been expressing caution
about continued growth, espe-
cially in light of Mr. Trump’s
campaign rhetoric about Mus-
lims, Mexicans and other
groups. Postelection, schools
have reported incidents tar-
geting Muslim students and
immigrants. The activity sent
a chill over some admissions
officers, who at the time were
still in the heat of the applica-
tion season.
Admissions officials at New
York University—where fresh-
man applications from over-
seas rose 7.3% to 18,373 and
deposits from international
said it helped residents of
those countries lobby for gov-
ernment action to offset the
environmental and social im-
pact of resource extraction.
But critics, including the
American Petroleum Institute,
said the rule puts U.S. firms at
a disadvantage against over-
seas competitors.
The House is scheduled to
vote on eliminating three
more regulations this week.
Senate Majority Leader Mitch
McConnell (R., Ky.) said the
has urged students from the
seven countries not to travel.
“We are recommending to
those students that they stay
in the U.S. until they finish their
program,” she said. “For anyone
that might have been caught
overseas, we’re willing to work
with them remotely so that
mitigates a lot of the economic
impact.”
The broader fear for univer-
sities is that the U.S. will see a
slide in enrollment from other
countries, too. On Tuesday, the
American Council on Education,
which represents nearly 1,800
college and university presi-
dents, sent a letter to John F.
Kelly, secretary of Homeland
Security. The letter said Mr.
Trump’s executive order “has
created uncertainty and fear
across the country and on our
campuses” and concern “the re-
strictions may expand to other
countries.”
—Douglas Belkin
students who have already
been admitted are tracking
ahead of last year—will urge
admitted students to begin fil-
ing visa paperwork immedi-
ately, because of uncertainty
over whether the approval
process will be more compli-
cated this year.
Admissions Dean Shawn
Abbott said the population of
students from countries for
whom Mr. Trump banned vi-
sas is small, but still is pres-
ent at NYU, and his office has
received “a handful” of inqui-
ries from students in recent
days asking about the implica-
tions of the executive order.
RICHARD DREW/ASSOCIATED PRESS
LIONEL CIRONNEAU/ASSOCIATED PRESS
upper chamber planned this
week to review the measures
passed by the House.
Drew Hammill, a spokes-
man for House Minority
Leader Nancy Pelosi (D., Ca-
lif.), said that by overturning
the rules, Republicans would
“reward their special-interest
friends with industry give-
aways at the expense of the
water our children drink and
the air they breathe.”
—Kristina Peterson
contributed to this article.
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
A4 | Thursday, February 2, 2017
Education Pick Hits GOP Hurdle
WASHINGTON—Two Re-
publican senators
Wednesday that they would
oppose President Donald
said
Trump’s choice for education
secretary, marking the first
GOP defections on a Trump
cabinet nominee and placing
her confirmation in jeopardy.
By Siobhan Hughes,
Nick Timiraos
and Aruna Viswanatha
The announcements by
Sens. Susan Collins of Maine
and Lisa Murkowski of Alaska
on the Senate floor that they
wouldn’t support Betsy DeVos
came on a day of Democratic
boycotts and Republican rule
changes in Senate committees,
measures that appeared to de-
lay other Trump nominees
without derailing them.
Also Wednesday, the Senate
confirmed former Exxon Mobil
Corp. Chief Executive Rex Til-
lerson as secretary of state,
sending him to a department
where he faces a formal pro-
test by officials against Mr.
Trump’s immigration initiative.
Three hotly debated nomi-
nations—Sen. Jeff Sessions
(R., Ala.) for attorney general,
Rep. Tom Price (R., Ga.) for
health secretary and Steven
Mnuchin for Treasury secre-
tary—advanced from commit-
tees to the Senate floor,
though their fights aren’t over.
But Ms. DeVos appeared in
the greatest peril. Ms.
Murkowski and Ms. Collins cast
committee votes a day earlier
to send her nomination to the
Senate floor while signaling
they might not ultimately vote
for her. Their announcements
Wednesday ensured that Re-
publicans, who hold a 52-48
Senate majority, can’t lose any
more votes, and likely will need
Vice President Mike Pence to
break a tie on her nomination.
Both senators emphasized
Ms. DeVos’s lack of experience
with public education. The nom-
inee has been an activist on
school choice and voucher is-
sues but hasn’t worked in the
public schools, and neither she
Democrats
Seek Probe
Of Flynn’s
Russia Ties
BY SHANE HARRIS
WASHINGTON—Several top
Democratic lawmakers are
asking the Defense Depart-
ment to investigate whether
retired Lt. Gen. Mike Flynn,
President Donald Trump’s na-
tional-security adviser, vio-
lated the Constitution when he
accepted money from a Rus-
sian television network that
U.S. intelligence officials say is
part of a state-funded media
apparatus.
In a letter sent Wednesday
to Secretary of Defense Jim
Mattis, the lawmakers said
that since Mr. Flynn retired
from the Army in 2014, he has
appeared regularly on Russia
Today, or RT, a state-spon-
sored television network.
The letter also said Mr.
Flynn acknowledged he was
paid to speak at a gala in Mos-
cow celebrating RT’s 10th an-
niversary in December 2015. At
the event, he dined alongside
Russian President Vladimir Pu-
tin.
The lawmakers said Mr.
Flynn may have violated the
Emoluments Clause of the
Constitution, which prohibits
someone “holding any office of
profit or trust”—meaning a
public office or military posi-
tion—from accepting gifts or
payments from a foreign coun-
try.
“The Department of Defense
has made clear that this re-
striction applies to retired mil-
itary officers because they
continue to hold offices of
trust,” according to the letter,
which was reviewed by The
Wall Street Journal.
Mr. Flynn didn’t respond to
a request for comment.
Mr. Flynn’s Russia trip and
his media appearances have
come under scrutiny before.
But this is the first time that
lawmakers have formally re-
quested that the Pentagon in-
vestigate the RT payment and
have suggested it may have
been illegal.
—Devlin Barrett
contributed to this article.
Sen. Lisa Murkowski (R., Alaska) joined GOP Sen. Susan Collins of Maine in opposing Betsy DeVos.
Donald Trump’s
First 100 Days
The administration’s latest
actions and agenda at a
glance
WEDNESDAY
u Court nomination: Mr.
Trump urged GOP senators
to change the rules to allow
his Supreme Court nominee,
Judge Neil Gorsuch, to
be confirmed by a simple-
majority vote if Democrats
try to block him, a step
known as the “nuclear
option.”
nor her children attended them.
“She has, no doubt, done
valuable work,” Ms. Collins said.
“Her concentration on charter
schools and vouchers, however,
raises the question about
whether or not she fully appreci-
ates that the secretary of educa-
tion’s primary focus must be on
helping states and communities,
parents, teachers, school-board
Babson College graduate school alumnus Abhinav Sureka, of India, right. Some colleges are starting programs to help alumni get visas.
VISAS
Continued from Page One
crafting, or have introduced,
legislation aimed at overhauling
visa programs and possibly de-
creasing the number of legal im-
migrants admitted into the
country. It’s a striking shift for
the party, which has typically fo-
cused on enforcement measures
to combat illegal immigration.
“There is a question to be
asked—what is the proper level
of legal immigration coming
into our country to meet the
needs of our economy?” Sen.
David Perdue (R., Ga.) said in an
interview Wednesday.
Mr. Perdue said the goal of
legislation he is crafting with
Sen. Tom Cotton (R., Ark.) is to
bring legal immigration down
to lower, historic levels. During
his presidential campaign, Mr.
Trump voiced the same goal.
Their legislation would re-
duce caps on immigration of ex-
tended family members and ref-
ugees and would eliminate the
“diversity lottery” that offers
the chance for green cards to
people from underrepresented
nations. Democrats typically op-
pose reductions in family-based
immigration.
The White House appears to
be focused on the employment
P W L C 10 11 12
u Investigation call: Several
top Democratic members of
Congress are asking the De-
fense Department to investi-
gate whether retired Lt. Gen.
Mike Flynn, Mr. Trump’s na-
tional security adviser, violated
the Constitution when he ac-
cepted money from a Russian
television network.
WHAT’S AHEAD
u Mr. Trump plans Thursday
to attend the National Prayer
Breakfast in Washington.
u The president is slated to
meet with a large group of
chief executives, including the
administrators, school-board
members and administrators
strengthen our public schools.”
Ms. Murkowski said thou-
sands of Alaskans have con-
tacted her to voice worries
about Ms. DeVos. “Their con-
cerns center, as mine do, on
Mrs. DeVos’s lack of experi-
ence with public education and
the lack of knowledge that she
programs. The draft order, for
instance, mandates that the sec-
retary of the Department of
Homeland Security issue a new
regulation within 90 days “to
restore the integrity of employ-
ment-based nonimmigrant
worker programs and better
protect U.S. and foreign workers
affected by those programs.”
It also mandates new inspec-
tions of work sites that partici-
pate in visa programs, calls for
regulations to “reform” an op-
tional practical training, or OPT,
program that helps foreign stu-
dents after they graduate, and
asks the secretary of Homeland
Security for options to pressure
employers to participate in the
voluntary E-Verify program used
to check the immigration status
of potential workers. It also
would immediately end “parole”
policies that allow immigrants
to remain in the U.S. and some-
times work after their visas ex-
pire.
A White House spokesman
had no comment on the draft or-
der, which is circulating among
interested parties in Washington
and was posted on Vox.com. It is
possible Mr. Trump may make
significant changes or even de-
cide not to issue it.
White House press secretary
Sean Spicer this week suggested
that action was coming. He cast
changes to legal work visas as
H T G K B F A M 1 2 3 4 5 6
U.S. NEWS
head of J.P. Morgan Chase &
Co., on Friday.
QUOTES
“There will be 60 votes for
SCOTUS confirmation. This is
nothing new. It was a bar met
by each of President Obama’s
nominees.”
—Senate Minority Leader
Chuck Schumer (D., N.Y.)
“If we end up with the same
gridlock we’ve had in Washing-
ton…I would say, ‘If you can,
Mitch, go nuclear.’”
—Mr. Trump, referring to
Senate Majority Leader
Mitch McConnell (R., Ky.)
portrayed in her confirmation
hearing,” Ms. Murkowski said.
Faced with the defections,
Majority Leader Mitch McCon-
nell (R., Ky.) moved Ms. De-
Vos’s nomination to the front
of the Senate agenda, a step
that allows Republicans to
benefit from the presence of
Mr. Sessions. If Mr. Sessions
were confirmed before Ms. De-
“part of a larger immigration re-
form effort” that Mr. Trump will
push through executive action
and legislation. “I think there’s
an overall need to look at all of
these programs,” he said.
During the campaign, most
attention was focused on Mr.
Trump’s promises to restrict il-
legal immigration or to keep
out potential terrorists. But he
also promised to reduce overall
levels of legal immigration and
to enact rules that drive up
wages and protect American
workers.
As a candidate, he was partic-
ularly critical of the H-1B pro-
gram. The demand for these vi-
sas far outstrips the supply, but
some say the program is abused.
“These are temporary for-
eign workers, imported from
abroad, for the explicit purpose
of substituting for American
workers at lower pay,” he said
last March. “I remain totally
committed to eliminating ram-
pant, widespread H-1B abuse.”
At other times he praised the
program.
The draft executive order is
mostly vague, and people on
both sides of the debate are try-
ing to figure out what to make
of it.
Leon Fresco, an immigration
attorney who worked in the
Obama Justice Department, said
he is advising clients to take the
7 8 9 O I X X ****** THE WALL STREET JOURNAL.
Vos received a vote, and Dem-
President
Blasts
ocrats remained unified
against her, Republicans would
be in a predicament. Ala-
Australia
bama’s governor would have
to quickly name a new senator
to fill Mr. Sessions’s spot and
Agreement
keep Ms. DeVos’s nomination President Donald Trump
from being rejected. suggested Wednesday evening
Mr. Sessions received a that he could back out of an
party-line vote on the Senate agreement with Australia to
Judiciary Committee Wednes- take 1,250 refugees, calling it a
day, sending his nomination to “dumb deal!” in a Twitter post.
the Senate floor, after a hearing The social-media post came
in which Democrats questioned
his ability to maintain indepen- By Damian Paletta in
SHAWN THEW/EUROPEAN PRESSPHOTO AGENCY
dence from the White House. Washington and Rob
The debate on the Senate Taylor in Canberra,
Finance Committee, which Australia
considered the nominations of
Messrs. Price and Mnuchin, four days after Mr. Trump and
has been especially acrimoni- Australian Prime Minister
ous. Democrats skipped a Malcolm Turnbull had a com-
scheduled vote Tuesday, de- bative phone call on Saturday
manding more information about the refugee agreement.
about answers the nominees The discussion devolved from
provided the committee. Com- there, according to people fa-
mittee rules call for at least miliar with the call.
one member of the minority Mr. Turnbull wanted the
party to be in attendance, so Trump administration to
the votes were postponed. honor an agreement Australia
Republicans responded by reached with the Obama ad-
suspending that rule Wednes- ministration to move 1,250
day, then voting to send people from its offshore de-
Messrs. Price and Mnuchin to tention centers to the U.S., and
the Senate floor with no Dem- Mr. Trump’s response indi-
ocrats in the room. Sen. Orrin cated that it could be up in the
Hatch (R., Utah) the commit- air, one person said.
tee chairman, said the com- Most of these refugees are
mittee was taking “unprece- from Iran but others are from
dented actions” because of Iraq and Somalia, three of the
“unprecedented obstruction.” seven countries named in a
Sen. Ron Wyden of Oregon, Trump executive order that
the panel’s top Democrat, said temporarily bans immigration
Democrats got almost no no- from those countries.
tice of the rescheduled vote. One person familiar with the
“It’s deeply troubling to me discussion described the talk as
that Republicans on the Fi- very testy. Two senior Austra-
nance Committee chose to lian government officials with
break the rules in the face of knowledge of the phone call
strong evidence of two nomi- said Mr. Trump had “hectored”
nees’ serious ethical prob- Mr. Turnbull and described the
lems,” Mr. Wyden said. language used as “robust.”
Among Democrats’ chief In his Twitter post, Mr.
concerns about Mr. Price is a Trump suggested for the first
Wall Street Journal article time that he could back out of
published Monday saying Mr. the arrangement: “Do you be-
Price had participated in a pri- lieve it? The Obama Adminis-
vate stock offering open to tration agreed to take thou-
fewer than 20 individuals. Mr. sands of illegal immigrants
Price had said the stock offer- from Australia. Why? I will
ing was open to all investors study this dumb deal!”
in the company. Mr. Turnbull is at least the
second world leader that has
clashed with Mr. Trump since
his Jan. 20 inauguration, fol-
lowing Mexican President En-
rique Peña Nieto, who canceled
a visit to the U.S. because of a
dispute about a border wall
between the countries.
Australia has for decades
been one Washington’s
staunchest allies and is part of
a close-knit group known as
“Five Eyes” that shares intelli-
gence on global threats.
Mr. Turnbull said in a radio
interview after Mr. Trump’s
tweeted criticism of the deal
that he still expected the agree-
ment to be honored and said it
was “not correct” that the pres-
ident had cut the call short.
Canberra has faced interna-
tional criticism of its hard-line
efforts to deter illegal migra-
tion, and the United Nations has
CHARLES KRUPA/ASSOCIATED PRESS
repeatedly condemned condi-
tions in the offshore detention
centres on Papua New Guinea’s
Manus Island and the Pacific
nation of Nauru. Australia last
year agreed to accept U.S.-
funded refugees from Costa
Rica, although Mr. Turnbull de-
nied the deals were linked.
prospect of the order seriously.
He mentioned hospitality, travel
and tourism, and hospitals, as
Tillerson
well as technology as industries
that could be affected. Confirmed
Many technology firms rely
heavily on the H-1B program
and are already angered by Mr.
For State
Trump’s order last week block- BY FELICIA SCHWARTZ
ing entry to the U.S. by people
from seven majority-Muslim na- WASHINGTON—The Senate
tions as part of the administra- confirmed former Exxon Mobil
tion’s antiterrorism efforts. Corp. Chief Executive Rex Til-
“Companies are starving for lerson as secretary of state,
talent,” said Vivek Ravisankar, sending him to the State De-
chief executive of developer re- partment as career officials
cruitment startup HackerRank, mount a formal protest against
which works with companies in- President Donald Trump’s im-
cluding Amazon.com Inc., Uber migration initiative and the
Technologies Inc. and Twitter U.S. faces a complex set of for-
Inc. About 70% of the develop- eign-policy challenges.
ers that are part of his commu- Mr. Tillerson won over
nity are from outside the U.S., skeptical Republicans, includ-
many of whom would be seek- ing Sens. John McCain of Ari-
ing H-1B visas. zona and Marco Rubio of Flor-
Still, companies such as ida, but continued to face
Google and Facebook could also Democratic opposition. He was
be winners under some of the confirmed on a 56-43 vote.
draft’s proposals. The draft calls Senators had voiced con-
for a review of all existing regu- cern about the close relation-
lations regarding foreign work- ship Mr. Tillerson forged with
ers and directs the DHS secre- Russian President Vladimir Pu-
tary to “consider ways to make tin while he was at Exxon and
the process for allocating H-1B his unwillingness in testimony
visas more efficient and ensure to recommit the U.S. to Russia
that beneficiaries of the program sanctions. Democrats also
are the best and the brightest.” were critical of his views on
—Kristina Peterson climate change.
and Jay Greene —Jay Solomon
contributed to this article. contributed to this article.
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
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THE WALL STREET JOURNAL. Thursday, February 2, 2017 | A5

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A6 | Thursday, February 2, 2017
Trump Supporters Expect Action
President Donald Trump’s supporters, who tend to live in economically downtrodden parts of the country, were largely won over by his
promise to bring back jobs and growth. They include the steelworkers of the Rust Belt, the coal miners of energy-rich states and the ranchers
of the West. As Mr. Trump works to fulfill the campaign promises he made to them, The Wall Street Journal is following supporters,
converts, abstainers and opponents to see how they evaluate his presidency over time. Read more about their assessments at WSJ.com.
STEPHANIE STRASBURG FOR THE WALL STREET JOURNAL
‘He’s like me. He says what
he’s thinking about,
to hell with everybody else.’
Emory Terensky, 66, would be happy if unnecessary
environmental regulations were eliminated
Election Results
Clinton Trump
32.7% 64.1%
Unemployment rate (December)
5.4%
U.S. 4.5
E
mory Terensky, 66 years
old, said he decided to
vote for Donald Trump
during last year’s primary de-
bates. The New York business-
man’s straight-talking style
and focus on jobs stood out.
Mr. Terensky lives in Mon-
essen, Pa., a fading industrial
town along the Monongahela
River. He worked for Wheel-
ing-Pittsburgh Steel, a once-
mighty employer that turned
off its blast furnaces in 1986.
After it closed, he commuted
to Ohio to work at another
mill, before retiring in 2010.
He said he believes Presi-
dent Trump’s policies, espe-
cially eliminating environmen-
tal rules, would enable
companies to add jobs in
manufacturing and other in-
dustries.
COURT
Continued from Page One
should have a chance to make
his case. “I think it’s wrong not
to be civil and have meetings
and find out if you’re for
somebody, find out why, go
home and explain it,’’ said Mr.
Manchin, who is up for re-elec-
tion next year in a state Mr.
Trump carried in November.
But other Democrats said
they harbored deep reserva-
tions. “There is going to be a
tremendous concern from
across America about this far-
right nominee,” said Sen. Jeff
Merkley (D., Ore.), who said he
wouldn’t vote for Judge Gor-
such. “I don’t think it will be
an easy confirmation.”
In addition to Mr. Merkley,
senators who already oppose
High-Court Pick Puts
GOP Minds at Rest
President Donald Trump
quelled some consternation
among Republicans with his
choice of Judge Neil Gorsuch for
the Supreme Court, answering
the GOP’s call for a nominee
with solid credentials and a con-
servative record.
Just as criticism was mount-
ing of his executive order on im-
migration, Mr. Trump moved up
his high-court selection by two
days, saying he would unveil his
pick on prime-time television.
Despite worries about a reality-
“Government doesn’t cre-
ate jobs, they create the con-
dition so that the entrepre-
neur can come in and create
jobs,” he said in January, be-
fore Mr. Trump took office.
“They’re spending more on
these bureaucrats than on cre-
ating jobs.”
Mr. Terensky, who served
as a medic in the Air Force in
Vietnam, said he has been
frustrated for years that
Democrats elected in the re-
gion failed to bring back steel
and other jobs.
On a recent day, he wore a
jacket with a message on the
back mocking the city’s Demo-
crats that reads, “Monessen
Lemmings! Home of the Dum-
mycrats!” He said he designed
the message himself.
In the early days of Mr.
Trump’s presidency, Mr. Te-
rensky said he was pleased.
“He’s doing everything he
said he was going to do, and
that’s what’s getting his op-
position ticked off,” he said
Wednesday. “He’s not re-
treating.”
He also said he was glad
Mr. Trump was pushing ahead
to build a wall along the bor-
der with Mexico.
“I’d send them $50 to put a
brick in the wall,” he said.
—Kris Maher in Monessen, Pa.
Judge Gorsuch include Eliza-
beth Warren of Massachusetts,
Sherrod Brown of Ohio and
Ron Wyden of Oregon.
Mr. Trump chose Judge
Gorsuch to fill the Supreme
Court vacancy caused by the
death of conservative Justice
Antonin Scalia a year ago,
which left the court with four
conservatives and four liber-
als. The Senate easily con-
firmed Judge Gorsuch to the
Denver-based 10th U.S. Circuit
Court of Appeals in 2006, but
the stakes are far higher for a
Supreme Court nominee, and
the environment is much more
partisan than a decade ago.
The fight unfolded on a day
of all-out partisan warfare in
the Senate, as Democrats used
parliamentary tactics to tie up
business on the floor and delay
votes on Mr. Trump’s cabinet
nominees. By the afternoon,
show-style spectacle, Mr. Trump
mollified many Republicans with
his selection of Mr. Gorsuch and
his measured handling Tuesday.
Sen. Lindsey Graham (R.,
S.C.), who criticized Mr.
Trump’s immigration order, at-
tended the announcement. “It
was a good rollout, unlike the
executive order. That was not
a good rollout.”
“President Trump did a great
thing in nominating this kind of
a guy,” said Sen. Ben Sasse (R.,
Neb.), who opposed Mr. Trump
during the presidential cam-
paign. “This is the kind of indi-
vidual the founders envisioned
on the Supreme Court.”
—Peter Nicholas
* **** THE WALL STREET JOURNAL.
U.S. NEWS
Election Results
Clinton Trump
7.4% 88.0%
Unemployment rate (December)
6.0%
U.S. 4.5
KRISTINA BARKER FOR THE WALL STREET JOURNAL
R
achel Kalenberg, 35
years old, and Ariane
Jimison, 38, a married
couple, recently opened Pizza
Carrello, a wood-fired pizza
restaurant in Gillette, Wyo.
Gillette, population
32,600, is in Campbell
County, and few counties in
the West have as much rid-
ing on the Trump adminis-
tration. The state churns
out about 40% of the na-
tion’s coal, and Campbell
County is located in the ‘My hope is that he will focus on the economy and really
heart of the mineral-rich
Powder River Basin. work to make it more sustainable all the way around.’
Longtime residents of the
city, both Ms. Kalenberg and Rachel Kalenberg, 35, would like President Trump
Ms. Jimison voted for Gary to ease restrictions on the energy industry
Johnson, the Libertarian can-
didate. They said they were
fearful of how minorities industry but felt that the more concerned about how “What I do see happening
would be treated under a town—and by proxy their civil rights will be viewed is an emboldened constitu-
Trump administration and business—would flourish un- under Mr. Trump’s watch, ency of his really throwing
turned off by the prospect of der less stringent energy re- particularly in places like lots of hate and crap out
a Clinton dynasty. strictions that he had vowed Campbell County, where few there,” said Ms. Jimison. “It’s
Ms. Kalenberg said she to pursue. lesbian, gay and transgender depressing and scary.”
didn’t think President Donald But the couple, who voted residents are open about —Dan Frosch
Trump could save the coal for Barack Obama twice, is their sexuality, they said. in Gillette, Wyo.
‘Boy, I think this is the beginning of something huge.’
Earl Cassorla, 60, wants a more limited government and the repeal of the Affordable Care Act
E
arl Cassorla, who with Judge Neil Gorsuch).
his brother runs a fire- Should Mr. Trump renege
works store in Battle on his promises and become
Mountain, Nev., said he was in- too dictatorial, Mr. Cassorla
spired by Donald Trump’s vow said he would support an im-
to root out and cut corruption peachment. But he is more
in the federal bureaucracy. optimistic than that. “Boy, I
“I felt the country has think this is the beginning of
been going in the wrong di- Election Results something huge,” he said. “I
rection,” Mr. Cassorla said at Clinton Trump think the left has no idea
the Roller Coaster Fireworks 16.7% 75.8% how strong the feelings of
JIM CARLTON/THE WALL STREET JOURNAL
store off Interstate 80. He Unemployment rate (December) their opposition are.”
spoke in January, before Mr. 5.5% Reached this week, Mr.
Trump began his presidency. U.S. 4.5 Cassorla said he approved so
“We need to get back to a far of how Mr. Trump was
limited government and a the ranching economy. doing in the White House.
constitutional government.” His other hopes include the “I think it’s fair to say so
Mr. Cassorla, 60, is chair- nomination of a Supreme far that Mr. Trump is per-
man of the Republican Central Court justice with the philoso- forming beyond my hopes
Committee in Lander County, phy of the late Antonin Scalia and expectations,” he said.
a dusty corner of northern (Mr. Trump on Tuesday tapped —Jim Carlton
Nevada that revolves around such a jurist, U.S. Circuit Court in Battle Mountain, Nev.
SOURCES: ASSOCIATED PRESS (ELECTION RESULTS); BUREAU OF LABOR STATISTICS (UNEMPLOYMENT RATE, NOT SEASONALLY UNADJUSTED)
Democrats had forced Mr.
McConnell to hold hours of
liant and immensely talented.”
Republican Sen. Ben Sasse of
mittee, which will examine
Judge Gorsuch’s record and Scaramucci’s
White House
consecutive votes on tradition- Nebraska called him “a highly vote whether to advance his
ally noncontroversial matters. regarded jurist with a record nomination to the full Senate,
One of Mr. Trump’s nomi- of distinguished service, is aiming for a start to confir-
nees, Betsy DeVos, fell into jeop-
ardy as GOP Sens. Lisa
rooted in respect for the law.”
As a result of the fight over
mation hearings in mid-March.
That sets off a roughly six- Role Uncertain
Murkowski of Alaska and Susan the Supreme Court vacancy, week timeline for the Trump
Collins of Maine said they would both parties appear to be ca- administration to try to build BY LISA BEILFUSS
oppose her bid to lead the De- reening toward a showdown support for the nomination. AND DAVE MICHAELS
partment of Education. Demo- over Senate rules that neither Democrats say their caucus
crats forced a delay in voting on says it wants—and that both is united behind maintaining a SkyBridge Capital founder
the confirmation in hopes of acknowledge would do damage 60-vote threshold. But already, Anthony Scaramucci, who left
finding the third GOP vote to the Senate as an institution. Republicans are anticipating his role as one of Wall Street’s
needed to block the nominee. “Partisanship and intensity they won’t get enough Demo- splashiest showmen to work for
Another nominee, Rex Tillerson, have ratcheted up another cratic support to clear that President Donald Trump, may
was confirmed as secretary of notch. These are not normal hurdle and will take the “nu- not serve on the new, bigger
state on Wednesday. times, and this is not a typical clear option.” stage after all.
Republicans say that Judge president,” said Sen. Chris Republicans could use a Mr. Scaramucci, who last
Gorsuch is a qualified nominee Coons (D., Del.), who hasn’t simple majority vote to scrap month promoted Mr. Trump’s
who should be confirmed eas- made up his mind on Judge the traditional voting proce- agenda as his informal represen-
ily. Sen. Ted Cruz (R., Texas), Gorsuch. “My concern is how dures and invoke rules that tative at the World Economic
who endorsed Mr. Trump for we ever find our way back to- would allow confirmation of Forum in Davos, Switzerland,
president after assurances wards being able to work to- Supreme Court nominees on a will “most likely” not take a po-
about potential Supreme Court gether,” said Mr. Coons. simple majority vote. That sition in the White House, an of-
picks, called Mr. Gorsuch “bril- The Senate Judiciary Com- would mirror a rules change ficial in the Trump administra-
Democrats made in 2013 that tion said Wednesday. The Trump
eliminated the 60-vote re- official didn’t give a detailed
quirement for lower-court reason for the fresh doubts over
judges and other executive an appointment that had been
branch nominees, a change publicly disclosed by the Trump
made to overcome Republican transition team in mid-January.
opposition to Mr. Obama’s Despite new hesitation about
nominees. Democrats left the Mr. Scaramucci inside the White
requirement in place for Su- House, it isn’t clear he intends to
preme Court picks. step away from the job.
“We’ll get more than just “Donald Trump hasn’t re-
BILL CLARK/CQ ROLL CALL/ZUMA PRESS
the Republicans, I believe, but scinded the job offer,” said a
you’ll never get to 60,” said person familiar with Mr. Scara-
Sen. Jim Risch (R., Idaho), sug- mucci’s situation. That person
gesting that the Senate would suggested that Mr. Scaramucci’s
ultimately change the rules. role has stirred opposition from
Already, pressure is being other aides worried about his
applied by conservative groups ties to the first family.
to Democrats up for re-elec- Lawyers for Mr. Scaramucci
tion in 2018 in states carried couldn’t be reached for com-
by Mr. Trump. ment Wednesday.
Judge Neil Gorsuch, center, arrives at the Capitol flanked by —Beth Reinhard —Michael C. Bender
former Sen. Kelly Ayotte, left, and Vice President Mike Pence. contributed to this article. contributed to this article.
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
THE WALL STREET JOURNAL. Thursday, February 2, 2017 | A7

WORLD NEWS
Ban Ki-moon Quits Korean Race China Aid
Sought
Ex-U.N. chief’s move
leaves presidential
candidates who could
To Locate
test alliance with U.S. Billionaire
BY JONATHAN CHENG BY JOSH CHIN
AND CHESTER YUNG
SEOUL—Former United Na-
tions Secretary-General Ban Hong Kong police waded
Ki-moon abruptly dropped his into a mystery surrounding
plans to pursue the presidency the whereabouts of a Chinese-
of South Korea, leaving the born billionaire on Wednesday,
country’s ruling conservatives saying they had asked main-
without a clear candidate to land authorities for more in-
succeed impeached President formation after determining
Park Geun-hye. the businessman had crossed
Mr. Ban’s exit on Wednesday the border into China.
paves the way for the ascension The police probe came after
of rival Moon Jae-in, a candi- speculation the billionaire,
date who has called for closer Xiao Jianhua, who had been
ties with North Korea, the re- living in Hong Kong, had been
thinking of a U.S.-backed mis- abducted by Chinese law en-
sile-defense system in South forcement—something Chinese
Korea, and a tougher line on media dismissed as rumor.
sprawling conglomerates such Mr. Xiao is the founder of
as Samsung and Hyundai. Tomorrow Holding Ltd., also
SON HYUNG-JU/NEWS1/REUTERS

All of the remaining leading known as Tomorrow Group, a

candidates for the presidency Beijing-based holding com-
are from opposition parties that pany.The Hurun Report ranked
favor closer ties with China and Mr. Xiao, who is in his
North Korea at the expense of mid-40s, as No. 32 on its lat-
the U.S. and Japan. est list of China’s wealthiest
That includes Lee Jae- individuals with an estimated
myung, a 52-year-old mayor personal fortune of $6 billion.
who has called for a more-con- Mr. Ban renounced his presidential ambitions in Seoul, saying he was disappointed with ‘the narrow-minded attitude of some politicians.’ Concern about Mr. Xiao’s
frontational approach to the whereabouts was reported to
U.S. and harsh penalties for vatives aligned with her have millions were flooding the Hong Kong police on Saturday,
the conglomerates, known as looked to the former U.N. chief U.S. Defense Chief alliance with Mexico and an- streets of Seoul in protest, fuel- though police declined to say by
chaebols. as a potential flag bearer. tagonized much of the Middle ing the rise of political outsid- whom. One of Mr. Xiao’s rela-
Mr. Moon, 64, has under- Shortly before his U.N. term Faces Test in Asia East, according to U.S. officials ers such as Mr. Lee, the mayor tives reported to police on Sun-
scored the importance of ended at the end of December, Taut With Distrust who said he must reassure jit- of a city outside Seoul, who day that the businessman told
maintaining good relations Mr. Ban enjoyed a comfortable tery allies that the U.S. will rode a wave of popularity his family he was safe, accord-
with Washington and said he lead in domestic polls. continue to be their friend. championing policies far out- ing to Hong Kong police, which
didn’t believe that reconsider- Mr. Ban, a former South Ko- WASHINGTON—U.S. De- Mr. Mattis confronts dete- side the status quo. said that the investigation
ing the missile-defense system rean foreign minister, stoked fense Secretary Jim Mattis is riorating security conditions Mr. Ban called an end to all would proceed nonetheless.
would hurt relations. A former speculation about his plans by in Asia this week as the first on the Korean Peninsula, in that with his announcement The state-run Securities
lawmaker from the largest op- saying he would give his all Trump cabinet member to go the South China Sea and Wednesday, saying that he had Daily newspaper quoted a
position party who narrowly for the nation, and drew a rau- abroad—a role in which he will across the Taiwan Strait—all given up on his “pure wish to statement posted Monday to
lost the 2012 presidential elec- cous crowd of supporters have the daunting task of rep- complicated by fraying ties bring national integration.” Tomorrow Group’s public ac-
tion to Ms. Park, Mr. Moon when he returned to South Ko- resenting a government that among traditional U.S. allies. He lashed out at some of the count on the WeChat messag-
had been pulling away from rea last month. has upended a longstanding —Gordon Lubold criticism he had faced, express- ing app that said Mr. Xiao was
Mr. Ban in recent polls. Mr. Since then, he has kept up a ing frustration with the political “recuperating overseas.”
Ban’s withdrawal from the busy pace of public appear- discourse in the country. An official in the press of-
campaign cements Mr. Moon’s ances without formally an- public demand for a more-dra- Ban was returning home. “The narrow-minded attitude fice of China’s Ministry of
position as the front-runner nouncing his candidacy, giving matic break with Ms. Park’s Mr. Ban encountered fierce of some politicians was a great Public Security said the office
for the presidency. speeches and meeting promi- scandal-ridden presidency. criticism from the domestic me- disappointment and I realized couldn’t process requests to
Since street demonstrations nent political figures. But Mr. Mr. Ban’s reputation also dia and from rival politicians, that it is futile to walk the same comment during the Lunar
erupted late last year against Ban began to lose steam as he took a hit after his brother and who painted Mr. Ban as a con- path as them,” he said. New Year holiday. Calls to the
Ms. Park amid allegations of in- toured the country, amid signs nephew were charged in a brib- tinuation of Ms. Park’s rule. —Eun-Young Jeong Hong Kong and Macau Affairs
fluence peddling, many conser- that he was out of sync with ery case in the U.S., just as Mr. The criticism resonated as contributed to this article. Office went unanswered.

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 For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
A8 | Thursday, February 2, 2017
NATO Scraps Ukraine Security Meeting
Alliance’s reversal on
missile-defense talks
reflects desire to avoid
provoking Russia
The North Atlantic Treaty
Organization has shelved a
plan to meet with Ukrainian
officials about the alliance’s
missile-defense system, West-
ern officials said, a new sign
the alliance is trying to avoid
provoking Russia.
By Julian E. Barnes
in Brussels and Nathan
Hodge in Moscow
NATO had considered meet-
ing with Ukraine to discuss
the possibility that debris or
an errant interceptor could fall
on their territory if the alli-
ance’s missile-defense system
were used.
The decision not to meet
with Ukraine comes as the alli-
ance is at an awkward moment
with Russia. NATO is begin-
ning to build up its deterrent
force on Russia’s border—the
first German forces set out on
Tuesday—even as President
Donald Trump looks to build
relations with Russian Presi-
dent Vladimir Putin.
Inside the alliance, diplo-
mats are discussing ways to
expand dialogue with Russia,
with some officials expecting
that Mr. Trump may seek to
have the alliance cooperate
more with Moscow.
But an escalation of fight-
Probe Puts
French
Candidate
In Crisis
BY WILLIAM HOROBIN
AND INTI LANDAURO
PARIS—The campaign of
François Fillon, once the clear
front-runner to become France’s
next president, is in crisis.
The conservative candidate
huddled with his party’s top
brass on Wednesday, seeking
to steady a campaign buffeted
by a deepening criminal inves-
tigation into whether his wife
collected a state salary with-
out performing any work.
The probe cuts to the core
of public frustration with the
country’s establishment, which
many voters say privileges po-
litical insiders with jobs and
benefits. Mr. Fillon won the
conservative primary in No-
vember on a pledge to over-
haul that system.
Now he is fighting to de-
fend his decision to have
placed his wife, Penelope, and
two children on the public
payroll. Polls suggest the accu-
sations have improved centrist
Emmanuel Macron’s chances
of becoming France’s next
president.
This week, police grilled
Mr. Fillon and searched his of-
fices for evidence his wife per-
formed work in exchange for
the salary she received as an
aide to Mr. Fillon and another
member of parliament.
On Tuesday, Le Canard
Enchaîné, the French satirical
weekly that sparked the scan-
dal last week, published a sec-
ond report on the Fillon fam-
ily’s activities. This one
alleged his wife received
€831,440 (about $892,000) for
stints as a parliamentary aide
dating back to 1988.
Mr. Fillon on Wednesday
dismissed the grumblings of
some lawmakers in his party
calling for a new candidate,
rejecting the report as “very
professional slander” and a
“constitutional coup d’état.”
“I will stand up to attacks
right to the end. I will be the
candidate for this election,” he
said. Mrs. Fillon and her chil-
dren haven’t commented.
THOMAS PADILLA/MAXPPP/ZUMA PRESS
François Fillon.
OSCE Special Monitoring Mission vehicles and Ukrainian tanks stood near an apartment house in Avdiivka, eastern Ukraine, on Wednesday.
ing in eastern Ukraine is com-
plicating efforts in Brussels
and Washington to recalibrate
relations with Russia.
Violence has grown in re-
cent days in the Donbas region
of Ukraine, where Russia-
backed separatists have fought
Ukrainian government troops
since 2014. Artillery fire and
Israel Starts to Clear Settlers From Outpost
BY RORY JONES
OFRA, West Bank—Israeli se-
curity forces began clearing an
illegal Jewish settler outpost in
the West Bank on Wednesday, as
the government pressed ahead
with settlement expansion else-
where in the territory Palestin-
ians claim for a future state.
A column of buses, police
vehicles and ambulances, led
by hundreds of police officers
on foot, converged in the early
morning hours on the hilltop
outpost of Amona. The en-
clave, which overlooks the set-
tlement of Ofra, has for years
been a symbol of the legal and
political struggle over Jewish
settlements.
Some 40 settler families re-
side in Amona, which is built
on private Palestinian land in
violation of Israeli law. Israel’s
high court ordered it evacu-
ated in 2014.
Hundreds of Israeli settlers
packed inside trailers and cab-
ins, refusing to move. People
in one home linked arms, sang
songs and cried. Unarmed po-
lice hauled some residents out,
carrying them to waiting
buses to be evacuated.
Oriel Pniel, 29 years old,
used wood, trees and rocks to
barricade himself, his wife and
two children inside their
trailer cabin. “We won’t be vi-
olent to the police but won’t
leave willingly,” Mr. Pniel said
as police ascended to the hill-
top outpost. “They are giving
a prize to the Arab enemy.”
About 16 police were in-
jured in clashes with protest-
ers, but by nightfall residents
of 12 houses in the outpost
had been moved and a dozen
more families had agreed to
IRAN
Iran has warned that new
U.S. sanctions could constitute
a violation of the nuclear deal,
setting up a scenario in which
the agreement could unravel—
something that hardliners in
both countries would welcome.
Administration officials,
while providing few specifics,
said Mr. Trump has begun a
process of reviewing current
U.S. policy and is “considering
a whole range of options,” in-
cluding tougher sanctions.
Asked if military force also
was one of the options, the of-
ficials didn’t rule it out.
One set of options has been
outlined by Congress, which is
preparing a measure targeting
Iran’s elite military unit, the
Islamic Revolutionary Guard.
Congressional staff working on
the legislation said it could be
ready as early as March.
A number of Trump admin-
istration officials have ac-
knowledged new sanctions
could prompt Tehran to claim
the U.S. violated the nuclear
WORLD NEWS
rocket attacks from separatists
have increased in the city of
Avdiivka, killing at least 12
Ukrainian soldiers and injuring
dozens more.
The Organization for Secu-
rity and Cooperation in Eu-
rope’s Special Monitoring Mis-
sion in Ukraine on Wednesday
said the fighting was as severe
Israeli police arrested a Jewish settler at the Amona outpost in the West Bank on Wednesday.
leave, police said. The evacua-
tion was continuing. In all,
about 300 residents were ex-
pected to be transferred.
Hundreds more people, who
had traveled to Amona to pro-
test, would also be forced to
leave, the police said.
Following their departure
from Amona, the families were
to be taken temporarily to a
guesthouse in Ofra, officials said.
Israeli authorities warned
settlers earlier Wednesday to
leave the hilltop enclave volun-
tarily or be removed by force.
agreement. They have said the
White House is prepared for
such a confrontation over the
sanctions in the months ahead.
The warning from the new
U.S. administration came just
hours after Iranian Defense
Minister Brig. Gen. Hossein
Dehghan confirmed the missile
launch, though he provided no
additional details on when and
where it happened, according
to the semiofficial Iranian Stu-
dents’ News Agency.
Gen. Dehghan said the
launch didn’t violate the 2015
deal between Iran and six
world powers, including the
U.S., under which Iran agreed
to limit its nuclear program in
exchange for relief from inter-
national sanctions.
Senior U.S. officials agreed
Wednesday the launch didn’t
violate the nuclear deal, a po-
sition that was also taken by
the Obama administration.
“The important thing is
here is that we’re communi-
cating that Iranian behavior
needs to be rethought by Teh-
ran,” one senior official said.
“That is something Tehran
needs to think through, be-
as it had seen in the area, re-
cording more than 10,000 ex-
plosions in the wider Donetsk
region. The Ukrainian govern-
ment said separatists had em-
ployed Grad rocket launchers
and heavy artillery in the lat-
est fighting.
Kate Byrnes, chargé d’af-
faires ad interim for the U.S.
Luba Samri, a spokeswoman
for the police, said police had
urged the outpost’s leaders to
allow the court-ordered evacu-
ation to proceed peacefully.
Proponents of Jewish settle-
ment of the West Bank de-
scribed the evacuation of
Amona as a mere setback in a
battle that is turning in their fa-
vor. “We lost the fight over
Amona, but we are winning the
battle for the Land of Israel,”
tweeted Naftali Bennett, the
conservative leader of the Jew-
ish Home party and a member
cause we are considering these
things in a different perspec-
tive.”
Mr. Flynn said the latest
missile launch was a violation
of United Nations Security
Council Resolution 2231, which
endorsed the nuclear deal and
“called upon” Iran to avoid any
activity related to missiles de-
The administration’s
warning came just
hours after Iran
confirmed the launch.
signed to be capable of carry-
ing nuclear warheads.
Iranian Foreign Minister Ja-
vad Zarif on Tuesday said
none of Iran’s missiles had
been designed to carry a nu-
clear warhead and that there-
fore the program didn’t con-
flict with the U.N. resolution.
The program only has “con-
ventional warheads that are
within the legitimate defense
domain,” Mr. Zarif said.
* **** THE WALL STREET JOURNAL.
and called for a return to a
cease-fire in the region.
Mr. Trump has promised
better relations with Russia,
raising hopes in Moscow that
the U.S. and the European
Union will lift sanctions related
imposed over Russia’s backing
of separatists and the annexa-
tion of the Black Sea Peninsula
of Crimea from Ukraine.
The Ukrainian government,
in turn, is worried that Mr.
Trump may strike a deal with
Russia to lift sanctions, giving
Mr. Putin a freer hand to en-
courage separatists.
“The shelling is massive,”
Ukrainian President Petro Po-
roshenko said on Tuesday.
“Who would dare talk about
lifting the sanctions in such
circumstances?”
He said the Ukrainian mili-
EVGENIY MALOLETKA/ASSOCIATED PRESS
tary was sending in tents, field
kitchens and power supplies to
assist civilians.
Some diplomats said a cau-
tious approach to discussing
missile defense with Ukraine
makes sense if the alliance
wants to avoid further under-
mining relations with Russia.
But other allies worry that the
alliance risks inadvertently
signaling that its resolve to
mission to the OSCE, said the help partners such as Ukraine
outbreak of fighting had left may waver.
17,000 people in Avdiivka A NATO diplomat said the
without water, electricity, or decision didn’t close off future
heat, amid winter conditions. discussions with Ukraine. But
“We understand 2,500 of these the alliance is moving carefully,
individuals are children.” given Russia’s history of using
NATO Secretary-General any development in the mis-
Jens Stoltenberg on Wednes- sile-defense system to stoke
day said it was a dire situation controversy, officials said.
Last week, Israel’s govern-
ment also approved a 2,500-
unit settlement expansion, amid
the encouraging signs from the
new U.S. administration.
Palestinian leaders on
Wednesday condemned the
moves. “We warn the interna-
tional community of Israeli
Prime Minister Benjamin Ne-
tanyahu’s attempts to take ad-
vantage of Amona’s eviction to
cover up more settlements ex-
pansion in order to undermine
the two-state solution, and foil
any chance for the establish-
ment of a viable and sovereign
Palestinian state,” said the Pal-
estinian Authority, which gov-
erns parts of the West Bank.
In recent days, calls by Is-
raeli lawmakers for the annex-
ation of the West Bank have
swelled. Israel’s parliament, or
ARIEL SCHALIT/ASSOCIATED PRESS
Knesset, is also set to pass a
bill that would legalize thou-
sands of West Bank homes that
like those in Amona are consid-
ered illegal under Israeli law.
If the legislation is ap-
proved, dozens of outposts
such as Amona would be legal-
ized, said Shilo Adler, head of
the Yesha Council, which was
formed in the 1970s to pro-
of Prime Minister Benjamin Ne- mote Jewish settlement in the
tanyahu’s ruling coalition. West Bank and Gaza Strip.
The newly installed Trump In Amona on Wednesday, Mr.
administration has indicated it Adler said settlement supporters
won’t pressure Israel to cease were pressing Mr. Netanyahu to
settler building and embold- approve more settlements and
ened the settlement movement, potentially annex parts of the
reversing the stance of former West Bank ahead of his meeting
President Barack Obama, who on Feb. 15 with President Don-
opposed the construction. ald Trump in Washington.
The evacuation of Amona Mr. Netanyahu said he had
was taking place just hours af- instructed officials to explore
ter Israeli Defense Minister Av- locations to build an entirely
igdor Lieberman announced new settlement that would
plans to build some 3,000 new eventually house the evacu-
housing units in the West Bank. ated residents of Amona.
The Security Council held a
closed meeting on Tuesday but
took no action, referring the
issue for further investigation.
Mr. Flynn said Iran’s missile
tests and other actions, includ-
ing its backing of Houthi
forces in Yemen and confron-
U.S. Ambassador Nikki Haley, tations with U.S. military ves-
in her debut at the Council, sels, were not met with a suffi-
told reporters the U.S. would ciently stern U.S. response
be warning “people across the during the Obama administra-
world.” tion.
The U.K.’s ambassador to The U.S. has blamed Iran in
the U.N., Matthew Rycroft, the past for helping fuel an
said Wednesday that the mis- uprising among Houthi rebels
sile test is “inconsistent” with in Yemen.
the U.N. resolution. In another development
Mr. Trump was highly criti- Wednesday, Mr. Trump
cal of President Barack tweeted, “Iran is rapidly taking
Obama’s diplomatic outreach over more and more of Iraq
to Iran, particularly the nu- even after the U.S. has squan-
clear deal, and Iran was among dered three trillion dollars
seven Muslim-majority coun- there. Obvious long ago!” The
tries whose citizens he barred Iranian government’s influence
from the U.S. in an executive in Iraq has grown since the
order Friday the White House U.S. withdrawal in 2011, and
said is aimed at keeping ter- U.S. officials have worried that
rorists from entering the coun- Iran, while fighting Islamic
try. State, will use that influence
Mr. Flynn said agreements to fuel sectarian tensions. But
Iran has made with the Obama there is no evidence Tehran is
administration and the U.N. taking over any part of Iraq in
are “weak and ineffective.” the sense of annexing pieces of
“Instead of being thankful the country.
to the United States for these —Jay Solomon, Farnaz
agreements, Iran is now feel- Fassihi and Paul Sonne
ing emboldened,” he said. contributed to this article.
 For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
THE WALL STREET JOURNAL. * * * * Thursday, February 2, 2017 | A9

WORLD NEWS

Middle Class Moving On Up

Pakistan’s middle class has grown substantially in recent years.
Percentage of households Percentage of population

In Pakistan that own key durable goods

60%
TV
under the poverty line*
60%

Achieves Liftoff 40
Washing
machine
Fridge 40

QASIM NAUMAN/THE WALL STREET JOURNAL

BY SAEED SHAH
ISLAMABAD—Pakistan, of-
ten in the headlines for terror-
ism, coups and poverty, has
developed something else in
recent years: a burgeoning
middle class that is fueling
economic growth and bolster-
ing a fragile democracy.
The transformation is evi-
dent in Jamil Abbas, a tailor of
women’s clothing whose 15
years of work has paid off with
two children in private school
and small luxuries like a refrig-
erator and a washing machine.
For companies like Swiss
food maker Nestlé SA, such
hungry consumers signal an
enormous change.
“Pakistan is entering the
hot zone,” said Bruno Olier-
hoek, Nestlé’s chief executive
officer for Pakistan, saying the
country appears to be at a tip-
ping point of exploding de-
mand. Nestlé’s sales in Paki-
stan have doubled in the past
five years to $1 billion.
Although often overshad-
owed by giant neighbors India
and China, Pakistan is the
sixth-most-populous country,
with 200 million people. And
now, major progress in the
country’s security, economic
and political environments
have helped create the stabil-
ity for a thriving middle class.
An unpublished study last
year that measured living
standards, from Pakistani mar-
ket research firm Aftab Associ-
ates, found that 38% of the
country is middle class, while
a further 4% is upper class.
That is a combined 84 million
people—roughly equivalent to
the entire populations of Ger-
many or Turkey.
Such households are likely
to have a motorcycle, color
television set, refrigerator,
washing machine and at least
one member who has com-
pleted school up to the age of
16, the study found. Official
figures show that the propor-
tion of households that owns a
Motorcycle
20
0 0
FY1991 ’00 ’10
Note: Fiscal year ends June 30
*Poverty line is based on cost of basic needs
Sources: Jawaid Ghani, Pakistan Bureau of Statistics (durable goods);
Government of Pakistan (poverty)
motorcycle soared to 34% in
2014 from 4% in 1991, and a
washing machine to 47% from
13% over that period. These
trends are also attracting in-
ternational business.
Royal FrieslandCampina NV,
a Dutch dairy company, in De-
cember paid $461 million to
buy control of Engro Foods, a
Pakistani packaged-milk pro-
ducer in a country where most
milk is sold unpasteurized
from open containers.
“What we see is consumer
spending is rising and a mid-
dle class coming up,” said
20
FY2002 ’05 ’06 ’08 ’11 ’12 ’14
THE WALL STREET JOURNAL.
Hans Laarakker, Engro’s new
chief executive.
Late last year, China’s
Shanghai Electric Power
agreed to pay $1.8 billion for a
majority of Karachi’s electric
supply company; Turkish elec-
trical appliance maker Arçelik
paid $258 million for a Paki-
stani appliance maker, Daw-
lance, saying Pakistan has an
“increasingly prosperous work-
ing and middle class;” and
French car maker Renault SA
said it was seeking to set up a
plant in Pakistan.
During the past three years,
A motorbike is a token of rising fortunes in a wealthier Pakistan.
deaths from terrorist attacks
have fallen by two-thirds, as
the army battles jihadists. Eco-
nomic growth reached an
eight-year high of nearly 5% in
the past financial year, and
China has begun a multibil-
lion-dollar infrastructure-in-
vestment program. The Kara-
chi stock market rose 46% last
year and continues to soar.
Ijaz Gilani, chairman of
pollster Gallup Pakistan, said
that the salaried middle class
will pressure the government
to improve poor public ser-
vices. “You cannot move for-
ward with weak governance,
and bypassing the state, by re-
lying on individual empower-
ment alone,” Mr. Gilani said.
Pakistan experienced a
“staggering fall” in poverty
from 2002 to 2014, according
the World Bank, halving to
29.5% of the population. That
period saw a spurt of eco-
nomic growth in the early
part, a takeoff in property val-
ues and a surge in remittances
from Pakistanis working over-
seas.
—Qasim Nauman
contributed to this article.

India Boosts Rural Outlays, Gets Harder on Cash
BY RAYMOND ZHONG
NEW DELHI—With India’s
clampdown on cash still
weighing on the economy, the
government released spending
plans aimed at bolstering rural
development and providing re-
lief to citizens after its disrup-
tive decision to void big bank
notes late last year.
Even so, Finance Minister
Arun Jaitley on Wednesday
also opened a new front in the
country’s war on paper
money: a ban on all cash
transactions above 300,000
rupees, or about $4,500.
Presenting the annual bud-
get before Parliament, Mr.
Jaitley announced a 24% boost
in spending on the country-
side, largely through a 25%
funding increase for India’s
massive rural-work program
and higher outlays on sanita-
tion, home-building and elec-
trification. Spending on roads,
railways and waterways was
raised by 10%.
Mr. Jaitley cut taxes for
small businesses and low- and
middle-income earners, and
raised taxes on the better-off
to help reduce the budget defi-
cit to 3.2% of gross domestic
product from 3.5%.
“The maximum emphasis in
this year’s budget has been on
farmers, villages, the poor,
Dalits and the underprivileged
sections of society,” Prime
Finance Minister
Arun Jaitley pledges
to rid 50,000 villages
of poverty by 2019.
Minister Narendra Modi said,
referring to the former “un-
touchables” at the bottom of
India’s caste ladder. “The gov-
ernment’s aim is to double
farmers’ income by 2022.”
The Modi administration
expects higher revenues in the
coming year to help keep the
budget deficit in check. Some
of its projections are likely to
be tested, though. Proceeds
from selling state-run compa-
nies are projected to jump, but
concluding such sales has been
slow. Spending on fuel subsi-
dies is projected to decline,
though Mr. Jaitley noted in
the budget speech that crude-
oil prices could rise this year.
On the eve of crucial state
elections, Mr. Jaitley faces
pressure to mitigate the eco-
nomic pain that businesses
and households have experi-
enced since the government
canceled 86% of the country’s
cash overnight in November.
That move, which Mr. Modi
has called an important step
toward curbing tax evasion
and corruption, threw the
Tightening the Belt
India's fiscal deficit
as a percentage of GDP
lives of many farmers and la-
borers in India’s informal 7%
economy into disarray.
Much of the first half of Mr. 6
Jaitley’s two-hour budget ad-
dress was given over to laying 5
out ambitious targets for help-
ing the poor. The minister 4
pledged to construct 10 mil-
lion homes in the countryside 3
and rid 50,000 villages of pov-
erty by 2019. 2
In the speech—which the
Indian government typically 1
uses to outline its economic
policies, not merely to present 0
its accounts—Mr. Jaitley pro- 2010 ’15 ’18*’19*
posed reducing individual cash
*projections
donations to parties to 2,000 Note: Fiscal year ending March 31
rupees from the current ceil- Source: Government budget documents
ing of 20,000 rupees. THE WALL STREET JOURNAL.

MEXICO
Government Prepares Large Protests
For Talks on Nafta Against Corruption
The Mexican government said
Wednesday that it would begin a
90-day period of formal consul-
tations with the private sector
and others to draw up guidelines
for its coming negotiations with
the U.S. on the North American
Free Trade Agreement.
President Donald Trump has
said he wants to renegotiate the
23-year-old trade pact between
the U.S., Mexico and Canada to
secure better terms for the U.S.,
which has an annual trade deficit
with Mexico of around $60 billion.
Mexico’s Economy and For-
eign Relations ministries said the
consultations will run simultane-
ously with those the U.S. govern-
ment will conduct internally for
its own preparations.
Mexico has shown a willing-
ness to review Nafta while de-
fending its commitment to free
trade and rejecting outright Mr.
Trump’s demands that Mexico
pay for a wall the U.S. plans to
build along the border to stop il-
legal immigration.
Mexico has free-trade agree-
ments with more than 40 coun-
tries, including the European
Union and Japan, although most
of its trade is with the U.S.,
which receives around 80% of
Mexican exports.
—Anthony Harrup
ROBERT GHEMENT/EUROPEAN PRESSPHOTO AGENCY
WORLD WATCH
ROMANIA
About 125,000 Romanians pro-
tested against corruption in the
streets of the capital Wednesday
night in what analysts called the
largest demonstration there since
the end of the Cold War.
Demonstrators massed through
the streets of Bucharest—as well
as smaller towns and cities
throughout the country—shouting
“thieves, thieves!” The protesters
condemned an emergency ordi-
nance decreed the previous night
that decriminalizes the theft of
public funds when the amount in-
volved is less than $47,000.
The leader of the ruling Social
Democratic Party, Liviu Dragnea, is
on trial for diverting a sum just
short of that—a charge he denies.
His party says the decree will help
decongest the prisons.
The protests come just two
months after Mr. Dragnea’s party
handily won an election.
—Drew Hinshaw
GERMANY
Terror Plot Alleged
In Arrest of Tunisian
German police arrested an
asylum seeker suspected of par-
ticipating in a deadly 2015 attack
in Tunisia and planning an as-
sault in Germany, adding to pub-
lic worries that the country is be-
coming a haven for Islamist
terrorists from abroad.
The 36-year-old man from Tu-
nisia was taken into custody in
Frankfurt during police raids early
Wednesday on 54 houses, busi-
nesses and mosques across the
German state of Hesse.
The man is suspected being a
recruiter and smuggler for Is-
lamic State and setting up a cell
of supporters to carry out an at-
tack, according to prosecutors.
Frankfurt’s prosecutor general,
Alexander Badle, said the plans
for an attack were in a “very
early phase” and there had been
no specific plot and no imminent
threat of violence.
—Andrea Thomas
U.K.
Parliamentary Hurdle
Is Cleared for Brexit
Legislation to allow Prime Min-
ister Theresa May to begin Britain’s
withdrawal from the European
Union passed its first parliamen-
tary hurdle with overwhelming
support on Wednesday.
The decision was widely ex-
pected after the main opposition
Labour Party said it wouldn’t block
government plans to trigger Arti-
cle 50, the mechanism for starting
exit negotiation talks. Mrs. May
has said Article 50 will be invoked
by the end of March.
—Nicholas Winning
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Thousands of Romanians massed in front of government headquarters in Bucharest on Wednesday

to protest a new ordinance that decriminalized the theft of public funds of less than $47,000.
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
A10 | Thursday, February 2, 2017
YELLEN
Continued from Page One
Yet the task ahead of her, now
Donald Trump is president,
might require a different skill
set. The president thrust Ms.
Yellen and the Fed onto the po-
litical stage by criticizing them
sharply during the campaign,
and his election raised expecta-
tions that GOP bills to rein in
the central bank will become
law.
The president has also said
he would probably find a re-
placement when Ms. Yellen’s
term is up in February 2018,
which means he would likely
nominate a successor by late
summer, rendering her a lame
duck.
Proposals to more tightly
oversee the Fed have been a
staple since the financial crisis.
Opposition from the Obama ad-
ministration meant they had lit-
tle chance of becoming law.
That backstop is now gone.
To compensate, Ms. Yellen
has tried to build alliances in
the Republican-controlled Con-
gress. But her closest relation-
ships are with Democrats, in-
cluding liberal Sen. Elizabeth
Warren (D., Mass.), with whom
she has spoken more than any
other lawmaker.
“Suddenly, everybody is look-
ing around going, ‘Holy cow,
maybe they’re serious,’ ” about
Fed-related legislation, said Rep.
Bill Huizenga (R., Mich.), the
former chairman of the House
Monetary Policy Subcommittee
who has sponsored a measure
to overhaul the Fed. “We are se-
rious. We’ve been serious.”
Ideas include requiring the
Ms. Yellen has
struggled to confront
the challenging
political landscape.
Fed to establish a mathematical
formula to guide interest-rate
policy, limiting its emergency-
lending powers and forcing the
central bank to return billions
of dollars banks paid to be
members of the Fed system.
The phenomenon is apparent
outside the U.S., too, with cen-
tral banks from Japan to the
U.K. grappling with skepticism
of their efforts to boost their
economies.
Ms. Yellen has opposed such
efforts, arguing they could hurt
the Fed’s ability to do its job of
fostering a strong labor market
and low, steady inflation.
Though central bank officials
missed signs of the impending
financial crisis, their response
helped avert a deeper depres-
CURSE
Continued from Page One
Like You Give a F—”), coloring
books for grown-ups (“Color Me
F—ing Calm” and “F— Off, I’m
Coloring!”), self-help gospels
(“The Subtle Art of Not Giving a
F—”) and memoirs (“There Is
No F—ing Secret: Letters from a
Badass Bitch”).
The titles have found an en-
thusiastic audience among some
millennials and baby boomers
as once-forbidden words are
now considered acceptable. In
recent years, The Wall Street
Journal has eased its standards
but still enlists a profanity bar
in many vulgar words.
Authors and their publishers
are discovering that marketing
such books can be tricky.
Gail Gonzales, vice president
and publisher of Rodale Books
and Rodale Kids, has years of
experience in the publishing in-
dustry. But she wasn’t sure how
to handle the different stan-
dards among retailers for selling
Rodale’s cookbooks such as the
“Thug Kitchen” series as well as
“Bake Sales Are My B*tch,”
which comes out in April.
“Never in my career have I
emailed some people on the
team saying, ‘Well, this retailer
will only take ‘ass’ or ‘hell’ or
‘bitch,’ but then this retailer is
Rep. Carolyn Maloney, left, then-Rep. Dan Coats, center, and Rep. Pat Tiberi, right, listen to Janet Yellen’s testimony on Nov. 17, 2016
sion, the Fed and its defenders
have argued.
Central bankers have long ar-
gued for independence from po-
litical pressure. They say it al-
lows them to make unpopular
decisions they believe are best
for the economy in the long run,
such as raising rates to curb in-
flation even if it means slowing
economic growth, as then-Fed
Chairman Volcker did in the
early 1980s.
“It’s critically important that
a central bank have the ability
to make judgments about how
best to pursue [its] goals while
being accountable for explaining
its decisions and transparent in
its decision-making,” Ms. Yellen
told a congressional committee
a week after the election.
The financial crisis, however,
battered the Fed’s credibil-
ity. Many lawmakers and some
economists want more informa-
tion about how the central bank
operates and what it may do in
the future.
Rep. Jeb Hensarling (R.,
Texas), chairman of the House
Financial Services Committee,
said GOP legislation would pro-
vide “a stronger foundation for
economic growth than the Fed’s
improvisational approach of re-
cent years.” He and others have
chided the Fed for resisting
those efforts.
Though Mr. Trump hasn’t
said whether he would support
the measures, his campaign re-
marks—he accused Ms. Yellen
of keeping rates low to help
Democrats—suggest he has no
qualms about criticizing Fed
policy or leadership, a depar-
ture from the recent tradition of
presidents staying mum on such
issues.
“The Fed is in serious trou-
ble, no question about it,” said
Camden Fine, president of the
Independent Community Bank-
ers of America. Ms. Yellen “is
going to have to kick into hyper-
drive to try to mend fences and
improve relations with both
sides of the aisle.”
Former Chairman Alan
Greenspan, who scheduled his
own breakfasts with members
of Congress, had extensive rela-
tionships in Washington when
he became chairman and often
operated as a one-man congres-
sional-relations shop.
His successor, Ben Bernanke
came from academia, but devel-
Some titles featuring curse words; not all the
new books on the market replace letters with
asterisks. Right, Matilda Griffin wraps copies of
her father’s book, ‘F—ing Apostrophes.’
OK with ‘f—’ and ‘s—,’ ” Ms.
Gonzales said.
At Legends Bookstore in
Cody, Wyo., the staff has no
hard and fast rules for which
bad words are allowed, said Ka-
lyn Beasley, the manager.
“We don’t have a separate
shelf or anything” for them, he
said. “If they’re a cookbook that
says ‘Eat Like You Give a F—,’
it’ll be right next to ‘Tacopedia’
or any other cookbook.”
To accommodate both book-
stores that wince at covers with
profanity as well as more per-
missive ones, some publishers
prepare two: one with an aster-
isk in place of a letter or two
and a second “clean” alterna-
tive. Thus, the tagline on Thug
FROM PAGE ONE
Roller Coaster
Over the decades, Fed leaders have attempted to create an aura of political neutrality—sometimes to the
detriment of the president who appointed them.
16%
Carter Reagan
12
8 A busy schedule
4 she met eight times with top
0 Discount rate Rate target
1980
Paul Volcker (Carter)
G. William Miller (Carter)
Fed Chairman Arthur F. Burns (nominated by Nixon)
Note: Prior to 1982, the Fed did not target the fed-funds rate as its primary policy tool.
Source: Federal Reserve Bank of St. Louis
The Chairwoman Is
Making House Calls
Janet Yellen’s calendar sug-
gests she has become more
strategic in her communications
with lawmakers over the past
year, a Wall Street Journal re-
view suggests.
The Fed chairwoman has be-
come more likely to meet law-
makers on their turf—a gesture
important to some of them—and
has spoken more frequently with
congressional leadership, includ-
ing meetings or phone calls with
oped a rapport with members
on both sides of the aisle during
the crisis. Those relationships
later helped him beat back leg-
islative efforts to strip the Fed
of its powers to supervise
banks.
Mixed results
Ms. Yellen served as chair-
woman of the White House
Council of Economic Advisers
under Bill Clinton from 1997 to
1999, but spent the vast major-
ity of her career working on the
relationship between interest
rates and the economy.
She has tried to shore up
congressional support for the
Fed over the past year, includ-
ing broadening her outreach to
potential allies, according to a
Kitchen’s “Party Grub” cook-
book—“For social mother-f—
ers”—became “Eat clean, party
hard” on the cover of its tamer
counterpart, which hasn’t sold
as briskly.
Mr. Griffin’s publisher, Icon
Books, spelled out “F—ing
Apostrophes,” skipping the
dingbats that obscure key let-
ters on other book jackets. Re-
placing part of profanities on
some covers are images of an
ink blot, a smudge, a burn mark,
or, as on “Thug Kitchen 101: Fast
as F—,” a spiral of pasta.
In radio interviews, some au-
thors resort to G-rated versions
of their titles, lest the real ones
trigger listener complaints.
Sarah Knight, author of the
G.H.W. Clinton
Bush
’90 2000
Alan Greenspan (Reagan)
Senate Majority Leader Mitch
McConnell (R., Ky.), House
Speaker Paul Ryan (R., Wis.), and
Senate Minority Leader Chuck
Schumer (D., N.Y.), who has
bonded with Ms. Yellen over
their shared Brooklyn roots.
She also spent more time
meeting with lawmakers in the
Senate, which has served as a
brake on House efforts to
change Fed operations. She met
more frequently with Democrats
in person—16 sit-downs, com-
pared with eight for Republi-
cans—and their meetings tended
to last longer.
If Ms. Yellen is successful,
Wall Street Journal analysis of
her calendar through November
2016, the most recent month for
which it is available. The results
have been mixed.
She has met two dozen times
with members of Congress since
November 2015, either hosting
them for breakfast or lunch in a
private dining room at the Fed
or shuttling to meetings on
Capitol Hill, in addition to log-
ging more than a dozen phone
calls.
Ms. Yellen is known for her
intensive preparation for con-
gressional hearings, news con-
ferences and other public
events, and her private meet-
ings are no different, according
to people who have sat in the
sessions. The primary goal is to
ALLISON PASEK/THE WALL STREET JOURNAL (BOOKS); SIMON GRIFFIN
international best-sellers “Get
Your S— Together” and “The
Life-Changing Magic of Not Giv-
ing a F—,” said that among
places where her book is pub-
lished in English—the U.S., Can-
ada, England, Ireland, Australia,
New Zealand and South Africa—
she was expecting her native
country of the U.S. to be the
most permissive.
She said it was actually the
most prudish.
During U.S. radio inter-
views about her tough-love tu-
torials, “I always have to say,
‘Not giving a fudge,’ or ‘Not
giving a hoot.’ ” Ms. Knight
said, while elsewhere, “I just
get to talk, and they play it
without even bleeping it out.”
THE WALL STREET JOURNAL.
Still, some others who have
sat in on meetings say Ms. Yel-
len sometimes comes across as
unwilling to move from pre-
pared points. Republicans have
criticized her for meeting more
often with Obama administra-
JIM WATSON/AGENCE FRANCE-PRESSE/GETTY IMAGE; BAO DANDAN/ZUMA PRESS (YELLEN)
tion officials and Democratic
lawmakers than with the GOP,
and accused the Fed and its
staff of being unresponsive in
dealing with Congress.
“I like her. She’s a nice per-
son,” said Sen. Tim Scott (R.,
S.C.), a member of the Senate
Banking Committee, who met
with Ms. Yellen for lunch
on March 3. “But she hasn’t
reached out to me.”
Ms. Yellen has offered to
meet with members on both
sides of the aisle during her tes-
timony before Congress.
Yet Mr. Huizenga, who has
led the subcommittee with pri-
mary oversight of the Fed,
hasn’t met with Ms. Yellen since
June 2015. Though Mr. Huiz-
enga said the Fed has always
accommodated his requests for
meetings, he expects the Fed to
be doing the requesting.
She spoke privately with Mr.
Hensarling—the chairman of
the full committee—just once
last year, in a half-hour phone
call in January 2016, according
to her calendar. She didn’t meet
G.W. Bush Obama with former Senate Banking
Committee Chairman Richard
Shelby (R., Ala.) at all in 2016,
the calendar indicates.
By contrast, between Novem-
ber 2015 and November 2016,
Democrats overseeing the Fed:
twice with Sen. Sherrod Brown
(D., Ohio), the Banking Commit-
’10 tee’s top Democrat; three times
Ben Bernanke (Bush) with Rep. Maxine Waters (D.,
Calif.) the top Democrat on the
Janet Yellen (Obama) House Financial Services Com-
mittee; and three times with
Ms. Warren, a critic of the Fed’s
THE WALL STREET JOURNAL. Wall Street oversight but an ally
on its efforts to preserve inde-
pendence.
the next round of Fed-related Ms. Yellen also met three
measures under consider- times with Sen. Bob Corker (R.,
ation might not make it to Don- Tenn.), one of the few remain-
ald Trump’s desk. Most bills re- ing Republicans to openly sup-
quire 60 votes to advance in the port the Fed who has been
Senate, and Republicans now known to call the chairwoman’s
hold 52 seats, two fewer than office directly to chat.
they did in the last Congress. In total, she spoke privately
“One of the problems the with Republicans 19 times, com-
Fed has had…was breaking pared with 20 meetings or
through and speaking to ordinary phone calls with Democrats. She
people and convincing them that met more frequently with Dem-
what it’s been doing is in their ocrats in person—16 sit-downs,
interest as well,” said former Fed compared with eight for Repub-
Vice Chairman Donald Kohn. licans—and their meetings
“She needs to keep working on tended to last longer.
that.” She’s had some successes.
—Kate Davidson After the vote on the Audit the
Fed bill, she met with several
Senate Republicans, including
educate lawmakers about Fed Sen. Jeff Flake (R., Ariz.), who
policies and its mission. had voted to advance the mea-
She comes armed with brief- sure. Mr. Flake said in a recent
ing books to back up her argu- interview he’s having second
ments, which she presents in a thoughts about the bill.
straightforward way, said one “I’ve supported it, but I do
congressional aide. She also have concerns about going too
aims to show lawmakers she is far there,” including worries
open to hearing their views. She about reducing the Fed’s inde-
asks after lawmakers’ family pendence, he said.
members and talks about her More typical is what hap-
own—she has one adult son pened when Congress consid-
who is also an economist. ered tapping the Fed to help pay
“You’ve been someone that for federal highway programs.
has been a delight to work Ms. Yellen warned it could set a
with,” former Sen. Dan Coats dangerous precedent. Congress
(R., Ind.), told Ms. Yellen took even more money from the
on Nov. 17 at his final hearing as Fed than initially proposed, in-
chairman of the Joint Economic cluding $19.3 billion from its
Committee. Mr. Coats is now capital account.
Mr. Trump’s nominee to be the —Byron Tau contributed to
director of national intelligence. this article.
In interviews to promote guinea pigs (the series includes
“F—ing Apostrophes,” Mr. Grif- “A Guinea Pig Pride & Preju-
fin said he sometimes refers to dice”) when she came across
the title, which he chose, as, “F—ing Apostrophes.”
“ ‘Bleeping Apostrophes,’ or I “I’m not sure she actually
sort of cough over it. It’s slightly took it in because she’d never
embarrassing.” heard the word,” Ms. Johnson
Brazos Bookstore in Houston said. “But her big sister was
considered adding “F—ing there and started, like ‘Whoa!’
Apostrophes” to a prominent laughing, and that’s when I said:
display, said Lydia Melby, the ‘Right, quick, let’s go!’ ” She said
store’s social-media manager she complained to the cashier
and events coordinator. But “the about the placement.
table was eye-level with kids, so “Obviously I do feel bad
we did have kind of a casual about that,” said Mr. Griffin, the
conversation about ‘Where shall author. “The intention of the
we put this?’ ” book was never to upset.”
In the end, “F—ing Apostro- Racy titles surged after “S—
phes” got an eye-catching perch, My Dad Says,” Justin Halpern’s
she said, but one “a little more collection of his father’s earthy
out of reach and away from the aphorisms, was published in
story-time area.” So far, “I ha- 2010. A year later, “Go the F—
ven’t seen anybody actually up- to Sleep,” a picture book for
set about” books with profanity, adults coaxing children to bed,
Ms. Melby said. “Usually people struck a chord with exasperated
have a bit of a giggle and they parents.
move on to “How to Talk to Vivien Jennings, president of
Your Cat About Gun Safety.” Rainy Day Books in Fairway,
“F—ing Apostrophes” ended Kan., is concerned and per-
up on display at a bookstore in plexed by the “deterioration of
Bournemouth, England, where language and civility at a time
Jessica Johnson was shopping when we really, really need
with her daughters, Phoebe, 11, more civilized communication.”
and Trudy, 8. Rainy Day Books carried “Go
The girls were browsing, said the F— to Sleep” but kept cop-
Ms. Johnson, lingering over ies on a shelf behind the coun-
funny books “that you might ter.
buy like a one-off purchase as a “We’re not censors,” Ms. Jen-
gift” on a table near the shop’s nings said. “If adults asked for
entrance. Trudy was looking at it, yes, we had it. But it’s not out
a picture book of costumed there for kids to look through.”
 For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
THE WALL STREET JOURNAL.
GREATER NEW YORK
Bistate Effort to Stymie Order
Lawmakers plan bills
to bar U.S. from using
Port assets to detain
immigrants at airports
BY KATE KING
JERSEY CITY—Lawmakers
from New York and New Jersey
plan to introduce legislation to
block the federal government
from using the region’s air-
ports, including John F. Ken-
nedy International Airport, to
detain or deport immigrants
and refugees.
The proposed legislation
would prohibit the Port Au-
thority of New York and New
Jersey from allowing federal
agencies to use its resources—
including police officers, facili-
ties used to detain immigrants,
or electricity in areas where
detainees are being held—to
enforce President Donald
Trump’s executive order sus-
pending immigration from
AGATON STROM FOR THE WALL STREET JOURNAL
New York Assemblywoman Nily Rozic at Liberty State Park, where lawmakers from both states laid out the proposed legislation.
Gracious Home Looks for a Savior
BY SARAH CHANEY
AND LILLIAN RIZZO
After filing for bankruptcy
and closing all but one of its
stores, Gracious Home is at a
crossroads.
The New York retailer, which
was founded more than 50
years ago, hopes to emerge
from the chapter 11 protection
that it filed for in December
and resume selling housewares
from one Upper East Side store
and online. Such a plan requires
the backing of a buyer or inves-
tor, which Gracious Home
doesn’t have yet.
Company leaders and ad-
visers say the first step to-
ward attracting a buyer is re-
viving Gracious Home’s e-
commerce business. Tuesday,
the company won bankruptcy-
court approval to start draw-
ing on a $3 million loan that
will help it acquire the inven-
tory it needs to do just that.
Counting on a revival are
employees and creditors owed
from $10 million to $50 million,
as well as shoppers drawn to
the company’s selection of
home goods like bedding, cook-
GMT-MASTER II
* *
seven countries.
The Port Authority operates
five airports near New York
City, including Newark Liberty
International Airport and La-
Guardia Airport.
Standing in Liberty State
Park, which overlooks the
Statue of Liberty and Ellis Is-
land, five Democratic lawmak-
ers from both states called Mr.
Trump’s executive order to
suspend the U.S.’s refugee-re-
settlement program and ban
immigration from seven coun-
tries “unconstitutional” and
“immoral.”
“If the federal government
wants to illegally implement an
order, I think the states have
an obligation to resist it,” said
New York state Sen. Michael
Gianaris, whose district in-
cludes Queens, which has a
large immigrant population.
New Jersey state Sen. San-
dra Cunningham said state of-
ficials have a responsibility to
stand up in support of their
ware, cashmere throws and
crystal vases.
“I’ve been working on how
to restart the business, keep it
going and drive it forward,”
Chief Executive Robert Morri-
son told a New York bankruptcy
judge Tuesday.
Mr. Morrison and another
Gracious Homes representa-
tive declined to comment for
this article.
3
The number of stores that the
retailer has closed since Dec. 14
Gracious Home previously
filed for chapter 11 protection in
2010. In court papers, it blamed
the collapse of the housing
market for declining sales. An
investment group purchased
the company out of bankruptcy.
But the retailer found itself
in trouble again, struggling to
compete against online and big-
box competitors.
OYSTER PERPETUAL
IN 18 KT WHITE GOLD
NY
citizens.
Mr. Gianaris said legislative
attorneys had reviewed the
measures and said it passed le-
gal muster.
The proposed legislation
faces several hurdles. It has to
be approved by the legislatures
of both states and signed by
both governors.
Doug Muzzio, a professor of
political science at Baruch Col-
lege, said Republican lawmak-
ers in New York, who control
the state Senate, would likely
block the measure.
“It’s not going to happen,”
Mr. Muzzio said.
A spokesman for New York
Gov. Andrew Cuomo, a Demo-
crat, said the governor will re-
view the bill.
Republican New Jersey Gov.
Chris Christie’s office didn’t re-
spond to requests for comment
Wednesday. On Tuesday, Mr.
Christie, who served on Mr.
Trump’s White House transi-
tion team, said he disagreed
And issues were brewing
with lender Signature Bank,
which in May declared Gracious
Home in default on its loan. As
a result, the lender tightened
its borrowing terms, eventually
accelerating repayment, Mr.
Morrison said in court filings.
Gracious Home says this tight-
ening forced it to delay rent
and other payments, making it
tough to purchase inventory.
A representative of Signa-
ture Bank, which has trans-
ferred the Gracious Home loan
to a new lender, wasn’t avail-
able to comment. In prior court
filings, however Signature Bank
denies it is responsible for the
retailer’s “longstanding busi-
ness problems and defaults.”
Under a deal reached in No-
vember to give the retailer
breathing room on the loan,
Gracious Home said it had to
hire a new officer to help it re-
structure. At an employee
meeting that month, company
leaders were optimistic about
plans to find a new lender, ac-
cording to people familiar with
the meeting.
Within several weeks, how-
ever, Gracious Home filed for
with certain aspects of the ex-
ecutive order and called its
rollout “terrible.”
“The president’s intention
here is right. His intention is to
try to protect our country from
terrorist attacks,” Mr. Christie
said. “It should be based in my
view on intelligence informa-
tion and not generalizations.”
Brigid Harrison, a professor
of political science and law at
Montclair State University,
said she doubts Mr. Christie
would sign the proposed legis-
lation despite his criticism of
the executive order.
“I’m not sure that he’s will-
ing to go to bat against Presi-
dent Trump at this point,” Ms.
Harrison said.
The bistate bills proposed
Wednesday are rarely used leg-
islative measures reflecting the
unusual nature of the Port Au-
thority, which is controlled by
New York and New Jersey, and
oversees airports, ports and
tunnels in both states.
chapter 11 protection with the
goal of “right sizing” itself,
court papers say. Since the Dec.
14 filing, Gracious Home has
closed three of its four stores—
one on the Upper West Side,
one in Chelsea and one on the
Upper East Side. Mr. Morrison
said in court that the company
laid off all but about two dozen
of its employees, who court pa-
pers say numbered 111 at the
time of the bankruptcy filing.
The company’s hopes of re-
vival were given a boost Tues-
day, when Judge Mary Kay
Vyskocil granted its request to
draw $1 million of a $3 million
loan. Without the funding, Gra-
cious Home advisers warned
the court that the company
wouldn’t survive beyond the
next two weeks.
On Wednesday, Gracious
Home lawyer Joseph Di-
Pasquale told The Wall Street
Journal that the financing will
allow the retailer to buy inven-
tory. He added that Gracious
Home hopes to resume online
sales in March.
“It’s a very positive step for
the company’s survival going
forward,” he said.
Thursday, February 2, 2017 | A10A
Education Vote in New Jersey
FOCUSED: Students at M.E.T.S. Charter School in Jersey City.
The state’s education board Wednesday decided against giving
charter schools more flexibility in hiring. More at WSJ.com/NY.
Park Lane Hotel
Co-Owner Faces
Removal Effort
BY PETER GRANT
AND BRADLEY HOPE
The U.S. Justice Department
and New York property devel-
oper Steven Witkoff have
asked a federal court to ap-
prove a plan to remove a fi-
nancier accused in a massive
international fraud from the
group that owns the finan-
cially troubled Park Lane Hotel
in Manhattan, according to
court papers.
The move is part of a
broader effort launched last
year by the Justice Department
to seize assets held by Jho
Low, the financier and a confi-
dant of Malaysian Prime Minis-
ter Najib Razak. Both have
been linked by U.S. prosecutors
to hundreds of millions of dol-
lars allegedly siphoned from
state investment fund
1Malaysia Development Bhd, or
1MDB.
Neither has been charged
with a crime in connection
with the 1MDB matter.
A spokesman for Mr. Low
didn’t respond to a request for
comment. He hasn’t addressed
the Justice Department’s
charges but in the past has de-
nied wrongdoing. Mr. Najib has
denied wrongdoing and has
said investigations of the 1MDB
fund are an effort to smear him
politically.
The attempted asset seizure
has cast a cloud over the Park
Lane Hotel, a 46-story hotel
overlooking New York’s Central
Park that had been Mr. Low’s
splashiest investment in the
U.S. and is the largest asset be-
ing sought by the U.S. in its
case against Mr. Low.
Mr. Low’s 55% stake in the
hotel is one of the many assets
purchased with what the Jus-
tice Department believes were
proceeds from an allegedly
multibillion-dollar fraud that
spanned the globe and is under
investigation in multiple coun-
tries. The government has said
it wants to take control of Mr.
Low’s assets, sell them and re-
turn the money to the Malay-
sian people.
The Justice Department and
Mr. Witkoff on Monday filed a
joint motion in Los Angeles
federal court asking for ap-
proval of their plan to stabilize
the ailing hotel and set up a
process for selling Mr. Low’s
stake in the property. Mr. Low
currently still has ownership of
the stake.
If approved, the plan would
enable a group of investors led
by Mr. Witkoff to shore up the
hotel’s finances and move for-
ward with its development
plans.
Mr. Witkoff, who is de-
rolex oyster perpetual and gmt-master ii
are ® trademarks.
CLAUDIO PAPAPIETRO FOR THE WALL STREET JOURNAL
scribed in the court papers as a
prominent player in the real-
estate industry, hasn’t been ac-
cused of wrongdoing or having
any connection to the 1MDB
matter. The court papers reveal
that he has been cooperating
closely with the authorities.
An investor group led by Mr.
Witkoff, along with Mr. Low,
purchased the Park Lane in
2013 from the estate of Leona
Helmsley in a deal that valued
the trophy property at $654
million.
Mr. Low and his family pro-
vided the lion’s share of the eq-
uity, with “proceeds derived
from or involved in fraud, mis-
appropriation and other viola-
tions of United States and for-
eign law,” the court papers
state.
Mr. Witkoff’s group, which
includes other marquee names
in New York real estate such as
developer Harry Macklowe and
Howard Lorber, chairman of
brokerage Douglas Elliman,
purchased the property with an
eye toward converting it to a
luxury condominium.
The group’s plans were
stalled when the federal gov-
ernment began its action to
seize Mr. Low’s assets. That ef-
fectively froze the owners out
of the financing markets and
made state government ap-
proval of their conversion plan
unlikely.
Financial problems began to
mount since the government
action because the Park Lane’s
cash flow isn’t enough for the
group to stay current on some
$480 million in debt and pay
expenses related to the
planned development and op-
erations. The group issued a
so-called capital call to its par-
ticipants to plug the gap, but
Mr. Low didn’t contribute,
which put him in default on his
stake, the court papers state.
PETER FOLEY FOR THE WALL STREET JOURNAL
The Park Lane Hotel
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
A10B | Thursday, February 2, 2017
From Palace of the Past to Condo of the Future
With land at a premium in Manhattan, developers are scooping up buildings that have seen better days
BY JOSH BARBANEL
A
T A 19TH-CENTURY build-
ing across from the
American Museum of
Natural History, 18-inch-thick
interior walls are coming
down as 44 rental apart-
ments are being morphed
into 23 luxury condos.
In prime Manhattan
neighborhoods, developers
eager to satisfy demand for
big, gleaming apartments are
on the hunt for
PROPERTY ornate but
beaten-down
palaces of the
past that they can remodel
without having to find land
for new construction.
The latest example is a
solid red-brick and terra-
cotta structure at 101 W.
78th St., just across Colum-
bus Avenue from the mu-
seum. The building started
going up in 1882, when por-
tions of the Upper West Side
were a prairie, divided into
dusty streets.
Now, workers are knock-
ing down thick, load-bearing
walls and spanning the open-
ings with steel beams, re-
placing generations of old
piping and utilities and add-
ing a penthouse. The devel-
opment team is creating
spaces for families who want
large homes, some with for-
mal dining rooms, libraries
and foyers.
At least five of the new
apartments are priced at
more than $10 million, with
the number of large apart-
ments likely to increase
since several more current
tenants have agreed to buy-
outs. Three apartments in
the building, which was for-
merly known as the Evelyn,
will be duplexes. Of the 23
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when you can’t be
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apartments now
planned, 11 have been
set aside for renters.
For developer GTIS
Partners, the challenge
was to restore a build-
ing that had “all the
things you can’t get any-
more” like high ceilings,
fireplaces, and plaster walls,
but that had “not been well
run for many years,” said
Tom Shapiro, the company’s
president and founder.
In the 1980s, condo con-
versions were quick ways of
cashing out buildings filled
with rent-regulated apart-
ments by offering large dis-
counts to renters who opted
to buy. Today, most conver-
sions are shooting for
higher sale prices, though
many lack the sky-high
views and architectural pa-
nache of the towers rising
up across Manhattan.
But redeveloping an
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apartment building can be
more complicated than put-
ting up a tower, particularly
when tenants with rent-regu-
lated apartments still live
there.
At 101 W. 78th St., most of
the apartments were occu-
pied, including 15 rent-regu-
lated units whose residents
had strong tenancy rights.
Another developer, New-
castle Realty Services, paid
$50 million for the building
in December 2012, and began
intensive renovations. But
ANNUAL
WATCH & JEWELRY
SALE
January 27th through
February 18th*
*greenwich location only
A bird’s-eye view from 101 W. 78th St. today, top left. A model
kitchen for the apartments. The area in the 19th century, above.
The building, then called the Evelyn, is in the top left corner.
tenants reached out to
elected officials with com-
plaints, triggering a series
of investigations. In Janu-
ary 2015, state Attorney Gen-
eral Eric Schneiderman ob-
tained a court order
stopping construction pend-
ing a fraud investigation.
Six months later, Newcas-
tle signed a consent decree
agreeing to pay $1.2 million
in restitution and provide
rent to tenants for two
years. The attorney general’s
office said the company had
negotiated buyouts with
some tenants when buyouts
weren’t permitted under
rules intended to ensure ten-
ants are aware of their op-
tions, and didn’t disclose its
plans to combine apart-
ments. Newcastle didn’t ad-
* * THE WALL STREET JOURNAL.
MARK KAUZLARICH FOR THE WALL STREET JOURNAL (2)
A Former Beauty
Regains Its Glory
A modest stepsister of the
famed Dakota on Central Park
West is getting a makeover in-
tended to restore its devel-
oper’s original vision.
In 1880, two years after
COLLECTION OF THE NEW-YORK HISTORICAL SOCIETY
work began at the Dakota, the
developer disclosed plans for a
“palatial apartment house” at
101 W. 78th St., in a building of
“brick neatly trimmed with
terra cotta.” The plan included
a novel amenity, then and now:
a Turkish or Russian bath for
its residents.
The building, long known as
the Evelyn, and the Dakota
were part of a building boom
made possible in part by ad-
vances in elevator construction,
which allowed developers to
reach higher into the sky.
But the building on West
78th Street was in trouble be-
mit to any wrongdoing. fore it was finished, according
During the negotiations, to city paperwork.
GTIS took over the project By 1885, with construction
and agreed to work closely completed only through the
with tenants and hold fifth floor of the planned eight,
monthly meetings about the the building application was
work under way. marked “stopped—no money.”
The original plan in- Another owner took over
tended to offer the original the Evelyn. Plans for the eighth
44 apartments “as is” for floor were canceled when the
$85 million, according a city adopted a now-scrapped
state database. Under the ban of buildings more than 80
current plan, the remaining feet tall.
23 apartments are now Under the new condo plans,
listed for $138.5 million, the brick, stone and terracotta
plus $30 million for about of the facade will be cleaned
11,000 square feet of com- and repaired, and missing col-
mercial space. umns and a portico on the
The building is due to main residential entrance on
come on the market early West 78th Street will be recre-
this month, said Anne S. ated out of cast stone. A pent-
Young, a broker with a house is being added on top.
Brown Harris Stevens, who —Josh Barbanel
is selling the apartments.
PROPERTY WATCH
MANHATTAN Property Markets Group is
Average Price Drops
For Posh Townhomes
developing the tower with Hakim
Organization and New Valley
LLC.
While sales of the most ex-
Studios and one-bedroom
apartments make up nearly 80%
pensive townhouses weakened
in Manhattan last year, the mar-
ket for lower-price townhouses
of the building. Studio rents start
at just under $2,000 a month,
and one-bedrooms at $2,845 a
strengthened in the borough’s month, after landlord conces-
Harlem and Washington Heights sions, including two free months
neighborhoods. of rent on a 14-month lease.
A new market report pre-
pared by appraiser Jonathan
Miller for the brokerage firm NEW YORK CITY
Douglas Elliman shows that the
average price of a townhouse, a Landlords Challenge
measure that reflects the soar-
ing prices of the most expensive
Rent Board in Court
properties, fell by 9% borough-
wide, with steep declines on the
Rent regulation in New York
City faces a key court test next
East Side and West Side and a month, just as the city’s Rent
slight drop downtown. Guidelines Board begins delibera-
The average price rose only in tions on whether landlords of
northern Manhattan, which regulated apartments will en-
notched a 7.6% increase from counter a freeze on rents for the
2015. Those uptown sales made third year in a row.
up more than 40 of all sales, up At a hearing in State Su-
from about 37% in 2015. preme Court in Manhattan on
Tuesday, lawyers for the city and
LONG ISLAND CITY for landlords sparred over
whether the members of the
Rental Tower Starts board, all of whom were ap-
Leasing Apartments pointed by Mayor Bill de Blasio,
had improperly focused on how
Leasing has begun at a 44- much tenants can afford to pay
story glass rental tower near the for housing when setting the
Queens entrance ramp to the Ed rents.
Koch Queensboro Bridge, the lat- At the hearing, Justice Debra
est addition to a high-rise neigh- A. James said she would issue a
borhood sprouting up in a for- ruling March 28. The first meet-
merly industrial stretch of Long ing of the nine-member board to
Island City. set rents for leasing beginning in
The building, known as 1 QPS October is usually called in the
Tower, is 481 feet tall and has first week in April.
391 apartments. —Josh Barbanel
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
THE WALL STREET JOURNAL. Thursday, February 2, 2017 | A11

LIFE&ARTS
THE VOICE WHISPERER

Pop Music’s Top Vocal Coach

Don Lawrence is preparing Lady Gaga for the Super Bowl halftime show; he also has helped Mick Jagger, Axl Rose and Bono
BY NEIL SHAH

THE MOST experienced coach at

the Super Bowl on Feb. 5 won’t be
worrying about his team’s passing
game. He will be making sure his
star student hits her high notes.
Vocal coach Don Lawrence is
prepping pop powerhouse Lady
Gaga this week for her perfor-
mance at the Super Bowl halftime
show—music’s biggest marketing

FROM TOP: STEPHANIE DIANI FOR THE WALL STREET JOURNAL; STEPHANE CARDINALE/CORBIS/GETTY IMAGES
moment, watched by more than
100 million television viewers.
“I’ve been planning this since I
was four,” Gaga says in a halftime-
show preview video. The 30-year-
old singer never lip-syncs or uses
backing tracks for her vocals,
which has become common for
high-profile events. Last year, when
she belted out a blistering rendi-
tion of the national anthem at Su-
per Bowl 50, CBS wanted an emer-
gency backing track just in case.
Gaga refused, Mr. Lawrence says.
Gaga’s halftime extravaganza
represents the latest achievement
of Mr. Lawrence’s nearly five-de-
cade career. The 71-year-old coach
began training Gaga 17 years ago,
when she was a 13-year-old stu-
dent on Manhattan’s Upper West
Side named Stefani Joanne Ange-
lina Germanotta. Mr. Lawrence’s
nephew heard her singing in a Don Lawrence, in his New
clothing boutique he ran and rec- York studio, began training
ommended her to Don. During Lady Gaga, below, when
their first lesson, in Mr. Law- she was just 13 years old.
rence’s studio near 72nd Street
and Broadway in Manhattan,
Gaga’s mother sat outside in a week. There’s a waiting list now, young Don Lawrence sat beneath ago. I think I sang a little in the from a chest-based voice to a head-
waiting room. “Within three but spots will likely open before the piano as his father taught. “I bathtub,’” Mr. Lawrence says. At based voice for higher notes, Gaga
months, I knew this girl was going summer, he says. (Mr. Lawrence learned through osmosis,” he says. first, Mr. Jagger’s regimen involves “has learned to take the ‘chest
to be it,” Mr. Lawrence says. declined to say his rate.) Mick Jagger, 73 years old, calls singing for 30 minutes—sometimes voice’ up—to high F or G above high
Mr. Lawrence uses a classical “If anyone’s serious about sing- Mr. Lawrence two months before a using Otis Redding songs—followed C,” Mr. Lawrence says. That makes
technique associated with opera ing, they should work with Don,” project. “I’ve asked him, by 30 to 45 minutes of rest. As the those higher notes more resonant.
singers and has attracted an avid says rock vocalist Sebastian Bach. when was the last project nears, Mr. Jagger sings for For Sunday’s Super Bowl, Mr.
following among rock and pop’s When Guns N’ Roses’ Axl Rose time you sang? two hours a day, six days a week. Lawrence will work with Gaga for
top talent. His clients have in- asked Mr. Bach how he gets his And he’ll say, There are emergencies. On six days—from Tuesday until
cluded Mick Jagger, Axl Rose, pipes ready for touring, Mr. Bach ‘Oh, about a the Rolling Stones’ 2003 showtime.
Bono, Courtney Love and Christina recommended Mr. Lawrence and year and a half “Licks” Tour, Mr. Jagger had a On tour, Gaga warms up with
Aguilera, among many others. made Mr. Rose a copy of his warm- throat infection before a London Mr. Lawrence by phone before
With pop stars relying on live up tape. (Both singers are known show. Mr. Lawrence jumped on a each show, whether in Jackson-
shows more than ever for revenue, for their high-pitched screams.) plane and in 24 hours helped Mr. ville, Fla., or Japan. “Four o’clock
skilled coaches are in demand, Mr. A decade ago, Mr. Lawrence met Jagger through the gig. “Five doc- in the morning—I’m there,” he
Lawrence says. Artist managers Mr. Rose in a Manhattan hotel tors said he shouldn’t sing,” Mr. says. For big events like the Super
and concert promoters tend to room just a few hours before a gig. Lawrence says. Bowl, one-on-one interaction with
cram concerts into tour schedules, After some reluctance, Mr. Rose At the heart of Mr. Law- eye contact helps. “No distrac-
but singing (or screaming) two took to Mr. Lawrence’s exercises; rence’s approach is a centu- tions,” he says.
hours every night can take a toll. they’ve worked two more times ries-old Italian technique Gaga has expanded pop music’s
To ready singers for the road’s since. “To this day, Axl warms up called bel canto that he boundaries by making the weird
rigors, Mr. Lawrence guides them to [a tape of] me—warming up and his father modern- mainstream. But when it comes to
through exercises and identifies with Don,” Mr. Bach says. ized for pop singers. singing, she wasn’t “Born This
problems. Sometimes it is in per- Vocal instruction runs in Mr. With the technique, Mr. Way”— the name of one of her
son, other times it is by phone. He Lawrence’s family. His father Mar- Lawrence expands a three No. 1 hits. She honed her craft
has regular students too: From his tin trained singers for more than singer’s vocal range, add- through diligent practice. “She’s a
650-square-foot office, he works 50 years before he passed away in ing to the performer’s arse- worker,” Mr. Lawrence says. “She’s
nine hours a day, four days a 2000. Growing up in Brooklyn’s nal. For instance, instead of the most spot-on singer I think I’ve
week. He once gave 100 lessons a Bensonhurst neighborhood, the automatically switching ever worked with.”

Weather The WSJ Daily Crossword | Edited by Mike Shenk

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BREAKING BAD | By Peter A. Collins 10 Diner eye-opener school exam
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For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
A12 | Thursday, February 2, 2017
THE MIDDLE SEAT| Scott McCartney
Is That Dog Really
A Service Pet?
The Transportation Department is trying to crack down as more pets board
EXTRA
After airlines pushed fees for in-cabin pets as high as $125 each way, a cottage industry sprang up of tools to save money.
BY SCOTT MCCARTNEY
COMFORT
THREE HOURS INTO the five-hour
flight from Philadelphia to California,
Bobbie Fields was wheezing and using
IN EVERY
her inhaler, allergic to the longhair dog
one row behind her. It’s becoming a
frequent problem for her—more pas-
sengers are dogs and cats.
STEP
“For all other allergies, like peanuts,
airlines go out of their way to make
sure it’s not a problem. But not for ani-
mals,” she says.
Airlines and passengers say more
animals are coming on board. And
more are easily evading expensive air-
line fees by declaring their pets as ser-
vice dogs or emotional-sup-
port animals. Cute poodles
and terriers toddle through
airports with ill-fitting vests.
There’s no specific data telling
us how many animals are in
the cabin, much less which
belong to owners who really
need them versus those trying
to game the system.
The Transportation Depart-
ment is trying to crack down
and says it hopes to propose
new rules later this year. A
The Un-Sneaker™ goes to work. 2016 effort to get airlines and
disability groups to recom-
You deserve insane comfort 24/7. So why mend new standards failed.
not treat your feet to the Hubbard 24 Seven? But the DOT says this issue remains an
area of concern and it plans to come
up with something on its own.
The Americans with Disabilities Act
defines service animals as dogs with
specific training, with a few other ex-
ceptions such as trained miniature
horses. But the Air Carrier Access Act
Free shipping and returns. Order online or call 844.482.4800.
that governs airlines is much broader.
It allows for both service animals and
emotional-support animals—pets that
provide comfort to people with mental
disabilities. Both kinds of support ani-
RESOLVE TO mals are allowed out of pet carriers
and exempt from airline fees.
Mental-health advocates say emo-
S T HEALTHY
tional-support animals can be necessary
and useful for many people, from veter-
ans with post-traumatic stress disorder
to people with severe flying anxiety. In
theory, the law doesn’t allow for every-
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LIFE & ARTS
Groups that support people with
disabilities who rely on highly trained
service dogs complain household pets
take spots on planes they need—air-
lines sometimes limit the number of
cabin dogs and cats on each flight.
Another worry: Service animal users
“are too often forced to come into con-
tact with inadequately trained and
overstressed animals whose owners ex-
ercise insufficient control,” says Brad-
ley Morris, government relations direc-
tor of Psychiatric Service Dog Partners
in Rock Hill, S.C., and a member of the
DOT’s advisory committee on accessi-
bility. Service dogs, meticulously
trained for several months to behave in
public settings, must sometimes be re-
tired if bad behavior is triggered by
one of these encounters.
Denny Leary, president of the Gate-
way Warrior Foundation in Fenton,
Mo., which raises funds for service
dogs for disabled veterans, says when
he sees “service poodles” at airports,
he asks in a friendly way what the dog
can do. “People stumble all over them-
selves. Most say the dog is for protec-
tion, but every dog protects its owner,”
he says. “You’re just taking advantage
of the system.”
When airlines pushed fees for in-
cabin pets higher, up to $125 each way
on several carriers in 2009, a cottage
industry sprang up of tools to save
money, such as donning a $40 service
dog vest or buying an emotional-sup-
port animal letter for $99.95. Diagnosis
is made over the phone.
Another incentive: People are wary
of transporting animals as cargo,
which can be both expensive and haz-
ardous. In the most recent 12 months
reported by the DOT, 26 animals died
during airline transportation and 21
pillows, covered with upholstery-grade
denim fabric. The best denim furniture will
perform well for years, withstanding chil-
dren and dogs. Just like your favorite
faded dungarees, your sofa will distress to
become a vision of shabby-chic patina, im-
parting character to any room.
Denim décor goes a long way—so think
accents, instead of ensembles. What’s
hokey are matching denim sofas and
THE WALL STREET JOURNAL.
FROM TOP: ROBERT ALEXANDER/GETTY IMAGES; ANDREW KELLY/REUTERS
were injured.
DOT says wearing a service-dog vest
“may not be sufficient evidence that
the animal is, in fact, a legitimate ser-
vice animal.” Airlines can ask passen-
gers what tasks or functions the ani-
mal performs, but they can’t ask about
a passenger’s disability. For emotional-
support animals, airlines can only ask
for the required letter. There are few
other rules, though Delta prohibits
hedgehogs, ferrets, insects, rodents,
snakes, spiders and farm poultry from
flying as emotional-support animals.
DOT formed a study group under its
accessibility advisory committee to
make recommendations on the appro-
priate definition of service animals and
ways to reduce false claims.
Participants say the airline in-
dustry pushed for adoption of
the Americans with Disabili-
ties Act definition, limiting
service animals mostly to
dogs. Disability advocates
pushed for removing medical-
certification requirements,
which they see as a hassle,
and promoting classification
as patients.
Several groups got together
recently and submitted a com-
promise recommendation to
DOT, supported by service-dog,
disability and veterans groups,
plus some airline and flight-attendant
union representatives. It would require
passengers to fill out a questionnaire
that warns of penalties. The form could
be stored in a passenger’s airline fre-
quent-flier profile.
Mr. Morris thinks it will cut down
on fraud and ignorance and still allow
for necessary support animals.
As for allergies, airlines say they try
to reseat affected passengers like Ms.
Fields. Limits on board can be gener-
ous: American’s limit is seven per
flight, not including service animals.
But Ms. Fields would like airlines to
track where pets will be on planes as
well as where people with allergies
have reserved seats and keep the two
separate. She and her husband fly fre-
quently to visit their children on the
West Coast and always select extra leg-
room seats in coach. When a longhair
dog is nearby, moving to another seat
typically means trading down to less
room. So far, she hasn’t had to use the
EpiPen she carries in-flight. “It’s just
uncomfortable,” she says.
chairs, as well as DIY denim wall hangings
or jeans pockets sewn into throw pillows.
—Teri Agins
Dear Readers: After a decade, this is
my final Ask Teri column. It’s been
DAVID BAMUNDO/WSJ
my pleasure to research and reply to
all your thoughtful questions. Always
wear fashions that you love. Please
find me at askteritips@gmail.com
 For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
THE WALL STREET JOURNAL. Thursday, February 2, 2017 | A13

LIFE & ARTS

will and yet is never loud.” On a
touch screen
s we can leaf through
FROM TOP: HOUGHTON LIBRARY/HARVARD UNIVERSITY (2); AMHERST COLLEGE ARCHIVES & SPECIAL COLLECTIONS (4); MICHAEL MEDEIROS (HOUSE)

the you
young Emily’s herbarium scrap-
book in which over 400 plants were
pasted, such close acquaintance
la
later resonating in the poems.
The exhibition is circum-
spect—too circumspect—
ab
about the poet’s possible am-
ato
atory relations, particularly
since suggestions of same-sex
sinc
attractions have become a staple
attrac
of rece
recent scholarship, but we see
clearly that late solitude came at
cost of once-cherished intimacy.
the cos
For her entire life she kept an 1850
invitation to a “Candy Pulling!!” by
invitati
one prepresumed suitor (George
Gould) and in 1876, we see here, she
wrote a poem on its reverse (“I sup-
pose
po ose th
the time will / come”) about
relentlessly
reelentle passing time.
We can
c see too why she did not
court
coourt publication.
p “Blazing in gold
and
an nd quenching
qu in purple”—a paean
too the setting
s sun—is shoehorned
into
in
nto an 1864 issue of the Spring-
field
fiield Daily
Da Republican, framed by
anecdotes
an necdo about a blinded soldier
and
an nd an “elderly woman” with rheu-
matism But a friend chastised the
m
matism.
“great
“ggreat poet” for her public reti-
cence:
ceence: “When you are what men
call
caall dea
dead, you will be sorry you
From left: Portrait of Emily Dickinson (far left) with were so stingy.” Perhaps she is—
w
her siblings; the poet’s house and brother; tthough she might now also be
daguerreotype of Dickinson; selection of her poems wary of being harnessed so often
to represent contemporary cate-
gories of identity.
The Morgan, unfortunately, did
EXHIBITION REVIEW
not provide transcriptions of the
no

A CHANCE TO TRULY MEET THE RECLUSE

BY EDWARD ROTHSTEIN
“Did you ever / read one of /her
poems back / ward” the fragmen-
tary lyric reads, “because / the
plunge from the front over / turned
you?” Emily Dickinson’s words are
scrawled on coarse brown, awk-
wardly cut wrapping paper—as if
the question came to the poet’s
mind so suddenly it had to be cap-
tured on whatever scrap could be
found. It is one of the small sensa-
tions at the winningly conceived
exhibition “I’m Nobody! Who are
you? The Life and Poetry of Emily
Dickinson” at the Morgan Library &
Museum through May 28. She
seems to be alluding to her own
poems with their metaphorically
condensed, startling language that
plunges the familiar into paradox,
the ordinary into the metaphysical.
Dickinson’s beginnings can be so
overturning (“It was not Death, for
I stood up”) one might indeed be
tempted to read backward.
There are other telling scraps
here too, along with a selection of
faintly penciled manuscripts dis-
covered after the poet’s death at
age 55 in 1886. She had mailed
hundreds of poems to friends, but
only 10 had been published during
her lifetime, anonymously and pre-
sumably without consent. Her fam-
ily found almost 1,800 others, many
carefully sewn into small leaflets
now preciously called “fascicles,”
their slanted writing peppered with
dashes. The last decades of Dickin-
son’s life were lived in near isola-
tion, the poet staying in her par-
ent’s home in Amherst, Mass.—her
grandfather was a founder of Am-
herst College and her father had
long been its treasurer—emerging
from her room at times in white,
like a wraith, avoiding most guests,
her poetic cosmos circumscribed
by her bedroom, her plants, her let-
ters and her often ghostly script.
But in gathering nearly 100 ob-
jects—billed as the most ambitious
presentation of Dickinsoniana to
date—the curators, Mike Kelly,
head of archives at Amherst Col-
lege, and the Morgan’s Carolyn
Vega, are intent not on the solitary
poet’s mind but her “extensive web
of relationships,” some established
in youth, some in correspondence
(as with the abolitionist minister
and editor Thomas Wentworth
Higginson) and some until death.
They even continued, in conten-
tion, well beyond, since her estate
was inharmoniously split between
Emily’s great friend—her brother’s
wife, Susan Dickinson—and her
brother’s mistress, Mabel Loomis
Todd. That is one reason it now
also remains largely divided be-
tween Amherst and Harvard.
A lovely portrait here from a
more pastoral era (c. 1840) shows
the poet as a child with her two sib-
lings. And a recently discovered
1847 roster from Mount Holyoke
Female Seminary shows a fellow
student’s verse sketch of the 16-
year-old Emily: “She is ever fair,
and never proud / Hath tongue at
ha
handwritten poems; they appear in
the catalog and are recited on an
audio tour, but the manuscripts
present themselves more gnomi-
cally than they should. Prepare to
visit first the vast online archives
(at the Amherst College Digital Col-
lections and the Emily Dickinson
Archive) and then come here to be
jostled by the remarkable traces of
a poet who, in an 1883 letter to her
young niece and niece’s friend, sig-
naled perhaps, how much she had
discovered in her circumscribed
world: “Who has not found the
Heaven—below— / Will fail of it
above. / For Angels rent the House
next our’s, / Wherever we remove.”
Mr. Rothstein is the Journal’s Critic
at Large.
I’m Nobody! Who are you? The
Life and Poetry of Emily Dickinson
The Morgan Library & Museum,
through May 28

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A14 | Thursday, February 2, 2017
HEARD ON
THE FIELD
LeBron James Is
Working Too Hard
It’s clear that LeBron James is
still the best player in the NBA. But
it’s unclear why the best player in
the NBA is still playing more than
anyone in the NBA.
It’s past the halfway point of
this season, and James is leading
the league in minutes per game,
which defies every trend of today’s
NBA. James is a 32-year-old super-
star on a team that should coast
into the playoffs at a time when
the league is more conscious than
ever about the value of rest—and
yet he’s putting an extraordinary
toll on his body.
What makes it even more curi-
ous is that James could use a
break. In the last seven years,
which includes his four seasons
with the Miami Heat and three
with the Cleveland Cavaliers, no one
has played more combined minutes
than James, according to Basketball
Reference. In fact, no one is even
close. In those seven years alone,
James has essentially played one
full season more than anybody else.
James being the best player in
the world hasn’t won him any rest,
either. Because he reached the last
six Finals, James has played an extra
128 games and 5,294 minutes. At his
normal workload, that amounts to
about two more regular seasons.
James was an outlier to begin
with: In the history of the NBA, no
player has ever logged more min-
utes by the season when he was
32. But that he’s still averaging 37.5
minutes per game at his age be-
comes even odder because of the
four players right behind him: Kyle
Lowry, Zach LaVine, Andrew Wig-
gins and Jimmy Butler. James has
played more career minutes than all
of them combined.
The teams that the Cavaliers
might play in the Finals are firm
believers in not playing their best
players all the time. Stephen Curry,
Kevin Durant and Klay Thompson
average 34 minutes per game.
Which is more than anybody on the
San Antonio Spurs.
James’s minutes are likely to
drop as the other players on the
Cavaliers get healthy. But what
may seem counterproductive now
is hard to argue with because of
what James did last year, when he
averaged 35.9 minutes per game
before the All-Star break. As it
turned out, he was pretty good
in the last three games of the
Finals, too. —Ben Cohen
KEN BLAZE/REUTERS
NEARING WIN NO. 1000—ER, 899
BY SAM BLUM
SYRACUSE, N.Y. —When Syra-
cuse beat Providence on Senior
Day 2005, marking the 700th win
for coach Jim Boeheim, the school
presented him with a banner cov-
ered in autographs of Orange fans.
For number 800 in 2009, the
Carrier Dome staff gave placards
to the crowd with Boeheim’s face
on them. Three years later, for
900, Boeheim was feted with a
postgame video tribute from bas-
ketball coaching greats.
And so with 72-year-old Boe-
heim closing in on 1,000 wins, the
school is planning…well, nothing.
Boeheim’s looming achieve-
ment—Duke’s Mike Krzyzewski is
the only Division-I coach to reach
four digits—is clouded by the
NCAA’s 2015 decision to pull 101
Syracuse wins from the books due
to sanctions against the program.
Though Boeheim has manned
the bench in 998 Syracuse wins,
he’s officially credited with 897,
and the school is prohibited from
commemorating the bigger num-
ber. That rankles generations of
Syracuse faithful, who view the
punishment as too harsh and have
deep-seated affection for the man
Atlanta quarterback Matt Ryan
Revenge of the Quarterback Nerd
Low-key, studious and almost bland, Ryan has turned the knock against him into his calling card
BY MATTHEW FUTTERMAN
HOUSTON—The world knows
nearly every inch of New England
Patriots quarterback Tom Brady’s
life: the supermodel wife, insanely
strict diet, fashion show cameos
and glamor vacations. The world
knows much less about Atlanta
Falcons quarterback Matt Ryan,
and what it’s learning about him in
the Super Bowl spotlight may
come as a surprise.
In an age of escalating quarter-
back flash, Ryan anchors the bland
end of the spectrum. He’s hard-
working, low-key and even a little
nerdy.
He played three sports at Wil-
liam Penn Charter School in Phila-
delphia—but also was a star
oceanography and computer sci-
ence student. As a fifth-year se-
nior at Boston College, he had al-
ready completed his
undergraduate degree and was
taking graduate courses at night.
While most quarterbacks wear
hoodies to their post-game inter-
views, Ryan donned a conserva-
tively tailored suit and tie before
going in front of the cameras after
this year’s NFC Championship
game. At Super Bowl media night
this week, he couldn’t name a fa-
vorite Lady Gaga song.
“I can’t rip one off the top of
my head,” he said.
Many of those qualities are why
the Falcons made Ryan the third
pick in the 2008 draft and the face
of the franchise for almost a de-
cade. His selection marked a 180-
degree turn from Michael Vick,
their flashy leader from 2001-07,
who pleaded guilty to charges re-
lated to his involvement in a dog-
fighting operation.
Yet in recent years—especially
COLLEGE BASKETBALL
who defines Syracuse basketball.
Boeheim played at the school,
served as an assistant coach and
has led the program for 41 years.
If the Orange can down North
Carolina State Wednesday night in
Raleigh, Boeheim would be on the
verge of a milestone that Syracuse
can’t actually celebrate.
“It’s kind of messed up how
they took it away from him,” Or-
ange point guard Frank Howard
said. “You can’t take away history
just like that. You can’t erase it.
He earned that.”
Making matters worse: Syracuse
is 13-9, the worst start in Boe-
heim’s tenure, and likely to miss
the NCAA tournament.
Still, the Syracuse government
is planning to host an event for
Boeheim whenever he reaches No.
1,000. County Executive Joanie
Mahoney says she will invite for-
mer Syracuse greats and fans to a
celebration downtown, serving as
both a rebuke of the NCAA and an
acknowledgment of a legendary
career.
The sanctions have been a point
of contention in Syracuse since an
eight-year investigation found that
though Boeheim wasn’t directly re-
sponsible, he failed to monitor the
infractions. Five players were inel-
SPORTS
SUPER BOWL LI
when the Falcon’s went a com-
bined 18-30 between 2013-15—
there was a creeping sense around
the league that Ryan’s blandness
came with a ceiling as well. He
was solid but not dynamic enough
to be a star.
This year, though, Ryan’s prepa-
ration paid off in a big way. Fal-
cons coach Dan Quinn said this
week that surrounding one of the
game’s most intelligent and tal-
ented quarterbacks with the right
weapons on the offensive line and
at wide receiver has gotten the
Falcons over the hump and back in
the Super Bowl. Ryan enters the
game as a leading candidate to be
the league’s most valuable player.
Ryan’s work ethic is on display
at practices as he methodically
goes through the same technical
drills. “That is all directed by
him,” Quinn said.
“There’s a lot of work to be
done during the week to get your-
self prepared and ready to play, so
I got my routine,” Ryan said
Wednesday, when asked about his
nerd tendencies. “I like to sleep, so
there might be somebody else in
the building in before me, but I’m
there pretty late.”
That would come as no surprise
to those who knew Ryan in his for-
mative years. Michael Moulton, the
technical education director at
Penn Charter, was Ryan’s computer
teacher during the spring term of
his senior year. The course in-
volved digging through databases
and then pulling all the informa-
tion together in a Power Point pre-
sentation. He remembers walking
past the computer lab one day and
hearing Ryan urging his friends to
plug away for a bit longer so they
could finish the project.
“It’s third trimester senior year
and this is an elective, not a re-
igible from 2004-2007 and
2010-2012, resulting in the 101
win-reduction.
Boeheim subsequently said in
2015 he would retire after the
2017-2018 season—in the same
press release that announced Ath-
letic Director Daryl Gross would
leave his position immediately.
Both contended their announce-
ments were unrelated to the sanc-
tions, and Gross believes the pen-
alties shouldn’t mar Boeheim’s
legacy.
“In some cases the level of com-
pliance in terms of the rules is a
fine line,” Gross said. “One of the
athletes received 200 bucks for
refereeing and didn’t fill out a
form properly. The fact that Jim is
penalized X number of games,
does that diminish his record? In
my opinion, Jim still coached the
same.”
Former Boeheim teammate and
Hall of Fame player Dave Bing
plans to be in attendance when No.
1,000 is reached, and thinks that
numerous other alums will as well.
“It’s a sad situation, the way
everything went down,” Bing said.
“You can’t take away the success
that he’s had as an individual. Nor
can you take away from the
school the success of the pro-
* ***
quirement,” Moulton said. “Spring-
time is exerting itself through the
windows. Do you understand what
I am getting at?”
It was the same scene on the
Jersey Shore, where Beth Glascott,
Ryan’s high school oceanography
teacher, remembers him intensely
digging through wet sand in
search of mollusks and crabs and
other forms of slimy sea life.
When Jason Swepson, who han-
dled recruiting in Pennsylvania for
Boston College, first met with
Ryan—in the high school library,
of course—he was struck by the
way the lanky kid with the rocket
arm looked him straight in the
eye, spoke like a grown-up and
asked as many questions about the
school as he answered.
At Super Bowl media
night this week, he
couldn’t name a favorite
Lady Gaga song.
But BC’s coaching staff was still
skeptical of his abilities, since
Penn Charter didn’t play elite com-
petition and employed a run-
heavy, triple-option offense. The
BC coaches made Ryan compete
with 100 other kids at a camp for
prospects. Ryan bested all of them
and won a scholarship offer.
“He’s a jock,” Swepson said of
Ryan last week. “But he went to a
private high school and a private
college. He wants it all, and he
could fit into any setting in life.”
At BC, Ryan ran the scout team
as a redshirt freshman, imitating
the next week’s opponent against
the first-team defense. The de-
Jim Boeheim would be the second Division I head coach to reach four digits.
gram. It’s a blemish.”
Boeheim, who declined to com-
ment, has previously said that the
career wins don’t matter—espe-
cially amid a season in which wins
have been hard to find. He was the
loser when UNC coach Roy Wil-
liams won his 800th on Jan. 16,
and told him jokingly that high
win totals are mostly a reflection
of being old.
“If someone got him a cake,
(Boeheim) would look at it, smile,
then walk away,” said longtime as-
sistant Mike Hopkins. “He’d proba-
THE WALL STREET JOURNAL.
KEVIN C. COX/GETTY IMAGES
fense usually knows the play the
offense is going to run and is sup-
posed to intercept the ball. Tom
O’Brien, the head coach at the
time, said the defense often got
antsy because Ryan kept complet-
ing passes on them anyway.
“He’s very smart,” said Jeff Jag-
odzinski, who succeeded O’Brien at
BC. “You don’t get into BC if
you’re dumb, so he had that. But
he is very football smart. The good
ones, they see everything.”
That intelligence allowed BC to
run a pro-style offense that relies
heavily on a quarterback’s ability
to drop back, read the defense,
and make throws rather than win-
ning with gimmicks and trickery.
That helped turn Ryan into a top
prospect for NFL clubs.
Ahead of the 2008 NFL draft,
Ryan trained at Athletes Perfo-
mance, now known as EXOS. Denis
Logan, a performance specialist
with EXOS who worked closely
with Ryan said there are three
kinds of NFL prospects. There is
the player who does whatever he
is told, no questions asked; the
player who pushes back and wants
to do his own thing; and the
player who will do what he is told
but wants to understand the sci-
ence behind every activity.
“I would definitely put Matt
Ryan in that third category,” Logan
said. Ryan needed to understand ex-
actly why he was being asked to
pull on a bar attached to a cable
where the resistance increased the
more he pulled. Answer: to increase
rotational strength in his shoulder.
When the Falcons needed an
anti-Vick, his past coaches backed
him. “I told (Falcons owner) Ar-
thur Blank when he visited that if
he took Matt he would be the face
of the franchise for the rest of his
career,” Jagodzinski said.
NICK LISI/ASSOCIATED PRESS
bly be mad if there are balloons in
the office.”
But at other times, Boeheim has
acknowledged that there are few
better ways to measure a coaching
career. “Coaches legacies are, ‘Did
you win? How many games did
you win? Are you a good coach or
a bad coach?’” Boeheim said after
announcing his retirement date in
2015. “The other part of my legacy
that I care about, is that people in
this community, and this nation
who are Syracuse people think
that I’ve been loyal to Syracuse.”
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
THE WALL STREET JOURNAL.
Trumpian Shock and Awe
“Shock and
awe,” a term
of art from
U.S. war doc-
trine, has
been deployed
by advocates
WONDER
of Donald
LAND
Trump to de-
By Daniel
scribe the
Henninger
pace of execu-
tive actions
the past two weeks.
The military originators of
this concept, which is fa-
mously associated with the
Iraq invasion in 2003, said
shock and awe was a “doctrine
of rapid dominance” whose
goal was to affect the will of
an adversary “to fight or re-
spond to our strategic policy.”
That is the theory, and it
fits the Trump strategic
model: Put political actions in
motion and force the world to
adjust.
The Trump White House
believed it was important for
the president to fulfill his
campaign commitments imme-
diately, whether the border
wall or the immigrant ban.
Problems or objections could
be dealt with later as the de-
tails got worked out.
So far, the White House’s
shock and awe of executive or-
ders mainly has effected a
popular uprising, and not just
in the streets.
To be sure, the political sys-
tem, especially the bureaucra-
cies, needed to be challenged
and shaken up. Almost cer-
tainly one reason Team Trump
didn’t pass the travel order
through normal interagency
vetting review is they be-
lieved—and experience bears
Amateur Hour at the White House
By Karl Rove
N
o one should have been
surprised when Presi-
dent Trump followed
through on his Aug. 15 cam-
paign call for “extreme vet-
ting” of visitors to America
from dangerous parts of the
globe. But the details of the
president’s executive order—
as well as the timing and the
confusion that accompanied
the rollout—are disconcerting.
The administration issued
its policy Friday afternoon, a
time normally used in Wash-
ington to bury bad stories.
Moreover, it came unaccompa-
nied by briefing papers and
talking points, and no officials
immediately explained it. It
took two hours before report-
ers received copies of the final
order—and another two before
White House officials an-
swered their questions.
The policy was effective im-
mediately, leaving hundreds of
visa holders from seven coun-
tries in limbo. Some were de-
tained as they flew into U.S.
airports from abroad, others
turned back or were not al-
lowed to board their planes
overseas. The administration
even applied the policy to
green-card holders—legal per-
manent residents, most of
whom have studied, worked or
lived in the U.S. for years.
Chaos and controversy pre-
dictably followed. Thousands
of protesters turned up at air-
ports around the country.
Lawyers rushed to court-
houses and were rewarded
Let’s Make a Deal on Russia and NATO
By Melvyn Krauss
P
resident Trump’s contro-
versial “love-in” with
Russian President Vladi-
mir Putin isn’t merely per-
sonal. What we are witnessing
is a new round of détente be-
tween Washington and Mos-
cow, with potentially disas-
trous results for Europe.
Mr. Trump has talked of a
new nuclear-disarmament
agreement with Russia. He
may also seek Mr. Putin’s help
in the Middle East, especially
in fighting Islamic State. In re-
turn, Mr. Trump might be will-
ing to remove the economic
sanctions imposed on Russia
for its aggression in Crimea
and eastern Ukraine.
The lifting of sanctions
could pose serious problems
for Europe. It would give Mr.
Putin additional resources to
meddle in the Continent’s af-
fairs. Economic sanctions are
the one effective weapon Euro-
peans have for keeping Mr. Pu-
tin in line. Without them, Eu-
them out—that agency lawyers
might have tried to dilute or
kill it. Instead, the Trump tem-
plate will dominate their post-
order implementation.
But the aftershocks from
Mexico and now the executive
order on travelers from seven
mostly Muslim countries re-
veal the liabilities in transfer-
ring war-fighting doctrine to
politics.
A well-understood law of
political motion holds that ev-
ery political act by a U.S. pres-
ident puts other significant
political forces in motion.
Mr. Trump’s partisan oppo-
sition, notably the organized
squads of street people, was
already on hair trigger. But the
fallout from the Trump order
on immigrant and refugee re-
strictions may be bringing to
life too many disparate forces
against him and his young
presidency.
The Trump team, which is
all about action, seems deter-
mined to push the envelope at
every turn. That’s fine, so long
as they don’t tear through the
envelope, which is what hap-
pened when several federal
judges poked holes in the ex-
ecutive order’s unfinished le-
gal foundation.
To be clear: The point here
has nothing to do with
whether Mr. Trump is right on
the merits of immigration vet-
ting; Barack Obama imposed
visa restrictions on Arab coun-
tries twice as antiterror policy.
The question is bloodless poli-
tics: Is the poor execution of
this order and its aftermath
putting more negative political
forces in motion than the
White House or Republicans
with judicial orders hobbling
the policy’s execution. The ad-
ministration reversed itself a
day later, allowing green-card
holders to be exempted on a
case-by-case basis.
Now imagine if the presi-
dent had waited and imple-
mented the policy carefully
and deliberately. Mr. Trump,
surrounded by the secretaries
of homeland security and
state, delivers a presidential
Trump mismanaged
the travel ban rollout.
The next crisis could
be more serious.
speech. He announces the im-
mediate suspension of new vi-
sas for travelers from the
seven listed countries, and ex-
plains clearly why they were
chosen. He directs the secre-
taries to develop “extreme vet-
ting” standards within 90
days, while halting Syrian ref-
ugee flows indefinitely.
Mr. Trump then adds that
current visa holders from the
seven countries could still
travel to the U.S.—but they
would be subject to additional
monitoring upon arrival. None
of these new rules, he reas-
sures Americans, apply to
green-card holders. After
speaking, Mr. Trump has his
two secretaries field questions
from the press. Congressional
leaders are already well-in-
formed and able to defend the
rope would stand virtually
naked in the face of a newly
assertive Russia.
But instead of thinking seri-
ously and strategically about
how to forestall the détente
with Russia that clearly is on
Mr. Trump’s mind, Europeans
Trump leaves
sanctions alone,
while allies spend
more on defense.
are experiencing a true mo-
ment of fiddling while Rome
burns. They’re doing little
more than moralizing about
the foibles and alleged inade-
quacies of America’s new “de-
plorable” president.
There’s a better option. The
most consequential thing Eu-
rope can do to gain influence
over Mr. Trump’s foreign-pol-
icy thinking is to cough up
more money for the common
OPINION
will be able to control in this
presidency’s first 100 days—
and beyond?
All political battles are won
or lost at the margin, includ-
ing the 2016 presidential elec-
tion. Just now, the Republi-
cans’ margin of success for
future initiatives looks tighter
than it did two weeks ago. If
Too many political
forces are coming
to life against the
young presidency.
this backlash siphons political
capital from the administra-
tion’s ability to achieve pro-
growth tax cuts, for instance,
Mr. Trump’s presidency will be
in trouble by fall.
It may be true that the
forces arrayed against Mr.
Trump now are predictable—
Democrats, career progres-
sives and the media. But the
half-done visa order has politi-
cized people the administra-
tion didn’t need among the
disaffected.
That includes the manage-
ment and employees of the en-
tire tech industry and of many
other American companies. It
includes some Republicans
and important staff in Con-
gress, numerous U.S. universi-
ties and research scientists,
ambivalent pro-Trump voters,
and foreign leaders such as
Theresa May, Angela Merkel
and Enrique Peña Nieto. Not to
mention the men and women
now rethinking offers to take
subcabinet positions after
policy, because Vice President
Mike Pence gave them a
heads-up before the announce-
ment.
This probably would have
produced virtually all the ben-
efits the administration
sought with much less contro-
versy. A Quinnipiac University
poll last month showed that
48% of Americans favor “sus-
pending immigration from
‘terror prone’ regions.” Only
42% oppose it.
A well-executed decision-
making process and rollout
might have improved those
numbers, giving the adminis-
tration an early political win.
There likely would have been
fewer, smaller protests. There
would not have been stories
like the one about Hameed
Khalid Darweesh. The Iraqi in-
terpreter had received a visa
to come to America after
working with the U.S. military
for years. He was detained at
Kennedy Airport over the
weekend for around 18 hours.
It’s conceivable White
House aides wanted contro-
versy, believing it helps the
president by provoking hyste-
ria among political opponents
and the press. But if Mr.
Trump’s critics looked bad, he
came off poorly too. It helped
Mr. Trump’s cause that former
President Obama decided
Monday—only 10 days after
leaving office—to unleash his
inner community organizer by
publicly encouraging the pro-
testers. No decent interval of
silence for his successor from
Mr. Obama.
defense provided by NATO.
Making Europe pay more
for NATO was one of Mr.
Trump’s more popular prom-
ises during the presidential
campaign. If Europe responded
to his election by raising de-
fense spending, it certainly
would be appreciated by Mr.
Trump’s team as early proof of
his effectiveness as a world
leader. Besides, a wide spec-
trum of informed European
opinion now is coming around
to the view that Europe must
contribute more to the com-
mon defense.
European governments
should propose a deal to Mr.
Trump that directly ties in-
creased defense contributions
to reciprocal actions by the
U.S., such as maintaining sanc-
tions on Russia unless Mr. Pu-
tin grants a major concession
in return—which of course he
won’t. That would effectively
box in Mr. Trump on the sanc-
tions, since such an offer
would be almost impossible
for him to refuse.
watching the public humilia-
tion of an unprepared federal
attorney in a Brooklyn court-
room Saturday.
One can minimize the im-
portance of any of these alone.
But allowing networks of dis-
affection to form and spread
could start tipping the politi-
cal scales away from the
Trump government’s goals.
The Democrats, dead in the
water before Inauguration Day,
have been given new energy.
The fundraising and organiz-
ing spigots, always dependent
on free publicity, are opening
for 2018. On Monday the Dem-
ocratic campaign committee
published a target list of 33
GOP House seats in districts
Hillary Clinton won or lost
narrowly.
It is early days for Mr.
Trump. This storm may pass.
But Lyndon Johnson, the most
deft of politicians, was never
able to get control of similar
forces, which undid his presi-
dency when the antiwar move-
ment of the 1960s took on a
life of its own. This White
House should not want an
anti-Trump psychology, in-
flamed by the limitless gaso-
line of social media, to com-
pete with and weaken the
president’s support.
The White House could ar-
gue that clarifying battle lines
in the public mind is impor-
tant, and doing what’s right
will win. But you had better be
sure the correlation of forces
stays in your favor. The grave-
yards are filled with generals
who thought they had the
right idea, before they were
overrun.
Write henninger@wsj.com.
This controversy will soon
recede. Homeland Security
Secretary John Kelly’s press
conference Tuesday calmed
the situation, and Mr. Trump’s
nomination of Judge Neil M.
Gorsuch to the Supreme Court
will now grab the headlines.
White House aides should
still view this as a teaching
moment. They ought to run
deliberative processes in
which cabinet members fully
participate and can express
reservations directly to the
president before decisions are
made. They need not ignore
Capitol Hill allies while se-
cretly drawing on congressio-
nal staff (and forbidding them
from telling their bosses). And
the White House should space
out major policy announce-
ments so Americans have time
to digest them. Or they can
delude themselves that—as
one White House aide told the
Washington Post—the travel
ban’s implementation was a
“massive success story.”
Some presidents got off to
a bad start—think John F. Ken-
nedy and the Bay of Pigs. But
Kennedy recovered by learning
from mistakes. Mr. Trump and
his aides should do the same.
Next time, the stakes could be
much higher, with graver con-
sequences for the Trump pres-
idency and the country.
Mr. Rove helped organize
the political-action committee
American Crossroads and is
the author of “The Triumph of
William McKinley” (Simon &
Schuster, 2015).
German Chancellor Angela
Merkel, who has been the
strongest advocate of punish-
ing Russia for its 2014 annexa-
tion of Crimea, would be a ma-
jor beneficiary of a deal with
Mr. Trump. If the U.S. lifts
sanctions on Moscow, it would
seriously undermine the Ger-
man chancellor’s campaign for
a fourth term, which is pre-
mised on the idea that she is
the sole European leader will-
ing to stand up to up to Russia.
If Mr. Trump strips her of that
weapon, Mrs. Merkel would
look like a NATO anachronism.
Righting a longstanding in-
equity in the financing of
NATO and the common de-
fense of the West seems a
small price to pay for Ameri-
can help in keeping Mrs.
Merkel in power and the Rus-
sian bear off Europe’s back.
That’s not a bad deal for both
parties.
Mr. Krauss is an emeritus
senior fellow at the Hoover In-
stitution.
Thursday, February 2, 2017 | A15
BOOKSHELF | By Dan Senor
Drafting Up
Innovation
The Weapon Wizards
By Yaakov Katz and Amir Bohbot
(St. Martin’s, 288 pages, $27.99)
I
srael is a country of eight million people that at its
narrowest point is nine miles wide. It is surrounded on
all sides by enemies who would like to see it wiped off
the map: Hezbollah to the north, Hamas to the south, plus
Bashar al-Assad’s regime, Islamic State and Iran to the east.
It wouldn’t take a particularly pessimistic person to bet
against this besieged slice of desert. Yet this tiny nation
has also built an air force, anti-missile defense system and
intelligence apparatus that is revered around the world—
and relied on by the U.S. military, among many others. And
it’s done it with a minuscule fraction of the budget avail-
able to larger nations.
How has Israel pulled it off? In “The Weapon Wizards”
Yaakov Katz and Amir Bohbot tell the story of how the
Jewish state’s military and defense sector became one of
the most cutting-edge in the world. In chapters focused on
particular technologies and weapons, such as drones, satel-
lites and cyber warfare,
the authors make the case
that the same factors that
have made Israel a tech gi-
ant have also allowed it to
become a “high-tech mili-
tary superpower.” The coun-
try’s military, its schools and
its extracurricular institu-
tions inculcate in its young
people tenacity, insatiable
questioning of authority, de-
termined informality, cross-dis-
ciplinary creativity and toler-
ance of failure.
Because of its hostile neigh-
borhood, Israel has had the unlucky
distinction of being the first target of the
newest terrorist innovations—which has forced it to be-
come a kind of laboratory for militaries across the globe.
Israeli commercial airline passengers, for example, were
among the world’s first victims of international hijacking
campaigns. But elite Israeli commando units conducted the
first successful airline hostage rescue in 1972, and then
again at Entebbe in 1976. America’s Delta Force was
founded partly in response to what the U.S. learned from
the IDF’s operation in Uganda.
Two decades later, in the 1990s, Palestinian terror
groups began deploying suicide bombers against civilians.
By the time of the Second Intifada, the bombings were an
almost daily occurrence. Israel responded by adapting: It
built a security fence along the West Bank, equipped with
sophisticated surveillance technology, which, alongside
stepped-up security operations, helped drastically curtail
the frequency of the bombings. It also boosted its focus on
human intelligence, redeveloping sophisticated networks to
track and apprehend planners and perpetrators inside the
West Bank.
Israel’s unique reserves system led to the success
of its defense industry: Engineers draw on real
battlefield experience to prepare for the future.
The Pentagon studied the IDF tactics used during the In-
tifada and applied lessons about effective urban warfare and
the use of dogs in combat to the wars in Iraq and Afghani-
stan. Israel also pioneered the use of attack helicopters and
UAVs, both of which have been critical in America’s target-
ing of terror cells in Pakistan and Yemen.
The authors, both longtime national-security reporters
and IDF veterans, are particularly interested in the army’s
system of reserves and how it has bolstered the country’s
military innovations. Many other countries have reserve
forces that augment the standing army, but because Israel
is so territorially small and its population so outmanned by
its adversaries, no standing army could ever be large
enough to defend the country. Thus in the IDF reservists
not only man whole units but also serve as commanders.
Messrs. Katz and Bohbot argue that a straight line can
be drawn from this unique reserves system to the success
of Israel’s defense industry. “Israeli engineers’ experiences
from the battlefield, as well as their continued training and
combat in the reserves, help them better understand what
the IDF requires for the next war as well as how to develop
it,” they write. This is different from the U.S., where, the
authors explain, the Pentagon “installs military officers in
development teams at defense contractors, but they are of-
ten viewed as outsiders.” In Israel, “the outsiders are the
insiders. Military experiences become lifelong experiences.
This dual identity is a national asset.”
This was a big factor in the rapid development and de-
ployment of the Iron Dome anti-missile defense system, de-
signed to intercept rockets launched by Hezbollah from
Lebanon and by Hamas from Gaza. Iron Dome was devel-
oped by Rafael Advanced Defense Systems; the company’s
missile factory is in the Galilee, not far from Israel’s border
with Lebanon. Many of Rafael’s engineers live in northern
Israel, fought in reserves during Israel’s 2006 war against
Hezbollah or spent 34 days in bomb shelters during that
war. In other words, they had far more than an academic
understanding of the threat that they were developing
technologies to defend against.
Israel’s defense industry also has a unique, export-ori-
ented business model. For the past 30 years, for example,
the country has been the world’s No. 1 exporter of drones,
responsible for 60% of the global market (the U.S. share of
global exports is less than half that).
For its willingness to sell its drones and many other de-
fense technology products abroad, including to China, the
country has been criticized. But Israel argues that this is an
existential matter. The IDF has never been a sufficiently
large buyer on its own to incentivize local companies to de-
velop new weapons or technologies, write Messrs. Katz and
Bohbot. This means Israeli defense tech start-ups and
larger companies need the economies of scale that can only
come from selling into foreign markets to “keep production
lines open and prices down for the IDF.”
While “The Weapon Wizards” can be a bit technical for
the lay reader, the authors have skillfully conveyed a key
component of the dynamic innovation culture that has
made the Jewish state one of the most important entrepre-
neurial and technology-driven economies in the world. Not
bad for a country 9 miles wide.
Mr. Senor is the co-author of “Start-up Nation:
The Story of Israel’s Economic Miracle.”
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
A16 | Thursday, February 2, 2017 THE WALL STREET JOURNAL.

OPINION
REVIEW & OUTLOOK LETTERS TO THE EDITOR

The Myth of the Stolen Seat Blame Congress, Not the Career Civil Service

T
he confirmation battle over Supreme filibuster that could block Judge Gorsuch’s con- Rep. Kevin McCarthy’s attack on When Congress enacts legislation
Court nominee Neil Gorsuch is off and firmation with as few as 41 votes. Mr. Schumer career civil servants is both misplaced that effectively passes authority to
and misleading, and sends a demoral- determine both the scope and range
running, and opponents already know said Tuesday that “the Senate must insist upon
izing message to the thousands of of the law to nonelected bureaucrats,
he’s superbly qualified with a 60 votes for any Supreme federal employees in his district our elected representatives have vio-
fine judicial temperament. But Democrats set the Court nominee, a bar that was (“How the House Will Roll Back Wash- lated their contract with the people
Democrats are still itching for standard for the GOP on met by each of President ington’s Rule by Bureaucrat,” op-ed, and eviscerated the basic premise of
a fight, and their first line of Obama’s nominees.” Jan. 25). Whatever one’s views are on the Constitution. Perhaps if Congress
offense is the myth of the “sto- judicial confirmations. There he goes again. Repub- the scope and reach of federal govern- refused to pass any bill that wasn’t di-
len” seat. licans never invoked the trigger ment regulations, any agency power rectly tied to one of the enumerated
“This is a seat that was sto- for a filibuster known as “clo- to issue regulations derives from a powers in Article I, Section 8 and
len from the former President, Obama, that’s ture” against either Sonia Sotomayor, who was congressional act, and the power over made sure that each bill was clear in
never been done in U.S. history before,” declared confirmed 68-31 in 2009, or Elena Kagan, who was regulatory policy rests with the intent and limit of the delegated au-
Oregon Senator Jeff Merkley in announcing that confirmed 63-37 in 2010. Republicans also helped elected president and his cabinet and thority, we could begin to solve the
political appointees. Blaming career problem. Until that time, what we get
he will attempt to filibuster Judge Gorsuch. “To to whoop through Bill Clinton nominees Ruth
civil servants deflects responsibility is more finger-pointing and kicking
let this become normal just invites a complete Bader Ginsburg 96-3 and Stephen Breyer 87-9. from those—including members of the can (read American people) down
partisan polarization of the Court from here to The only recent attempt at filibustering a Su- Congress—with the actual power to the road.
eternity.” The “stolen” line is echoing across preme Court nominee was by Democrats against change federal laws and regulations. JACK HAMILTON
Progressive Nation, but it’s a complete political George W. Bush nominee Samuel Alito in 2006. In placing this blame, Rep. McCarthy Silverdale, Wash.
invention. Twenty-five Democrats filed for cloture, led by is casting professional civil service as
The “theft” is supposedly the GOP Senate’s then Senator Obama, Hillary Clinton and Mr. a threat to our democracy, when it is, Why wasn’t this addressed by the
refusal last year to vote on President Obama’s Schumer. They lost that vote, but sometimes we in fact, one of its strongest bulwarks. key framers of the Constitution, i.e.,
nomination of Merrick Garland to fill Antonin fear that Senator Schumer’s memory may be Rep. McCarthy’s own district is Adams, Madison and Hamilton? It
Scalia’s seat. But the standard of not confirming fading since he can’t seem to recall his previous home to Edwards Air Force Base, probably wasn’t considered because
a Supreme Court nominee in the final year of a actions. which employs nearly 5,000 civilian there were only three departments in
federal workers, and the China Lake 1789 (War, State and Treasury). It
Presidency was set by . . . Democrats. And by no As for filibustering Judge Gorsuch, several Naval Air Warfare Center, which em- most likely never occurred to them
less a Beltway monument than the current Sen- Democrats up for re-election are saying they ploys more than 3,000 civilian work- that these department heads would
ate Minority Leader, Chuck Schumer. don’t want to do it. And Republicans shouldn’t ers. Yet he broadly attacks “the fed- avoid Congress and issue, for exam-
“We should not confirm any Bush nominee invite a filibuster, notwithstanding President eral bureaucracy” as “the greatest ple, more than 500,000 pages of rules
to the Supreme Court, except in extraordinary Trump’s comments Wednesday that Majority threat to America’s people, economy in the Federal Register during one
circumstances,” Mr. Schumer declared in a July Leader Mitch McConnell should change Senate and Constitution,” framing dedicated president’s administration.
2007 speech to the American Constitution Soci- rules to break a filibuster if he has to. If we’re federal workers, like those in his own When President Trump promised
ety. Democrats then held the Senate and Mr. certain about anything in politics it is that Mr. district, as “the swamp.” Such attacks to drain the swamp, these callous reg-
Schumer was putting down a marker if someone McConnell doesn’t need Donald Trump’s advice fuel public misperceptions about the ulations must have been at the top of
on the High Court retired. George W. Bush didn’t about running the Senate. The Majority Leader federal workforce, and lead to poli- his mind.
cies, such as drastic compensation WILLIAM H. JAECK
get another opening, but Mr. Schumer surely has more guile than Mr. Trump has bluster, and
cuts, that affect civilian federal em- Franksville, Wis.
meant what he said. he knows it’s better politics to confirm the judge ployees across the country, and in the
The Democratic theft standard goes back fur- without breaking Senate rules. representative’s backyard, who have The reforms outlined by Rep.
ther to Joe Biden’s days as chairman of the Sen- But if forced to do so, Mr. McConnell can also no connection whatsoever to govern- McCarthy are promising, but most of
ate Judiciary Committee. In June 1992 in Presi- invoke a Democratic precedent. Mr. Reid broke ment regulation. If there is a them, including the Regulations From
dent George H.W. Bush’s final year, Robber Joe the filibuster to pack Mr. Obama’s nominees on “swamp,” these dedicated public ser- the Executive in Need of Scrutiny Act,
opined that the President “should consider fol- the D.C. Circuit Court of Appeals, and last year vants, who have no electoral ambi- leave intact the notion that the execu-
lowing the practice of a majority of his prede- he said Democrats would do the same for the Su- tions, certainly are not it. tive may issue regulations and that
cessors and not name a nominee until after the preme Court if Mrs. Clinton won the election and RICHARD THISSEN Congress may only veto them, exactly
November election is completed.” his party held the Senate. “I have set the Senate President the opposite of how our system is
Naming a new Justice, he said, would ensure so when I leave, we’re going to be able to get The National Active and Retired supposed to work.
Federal Employees Association HARRY MILLER
that a confirmation “process that is already in judges done with a majority,” he said. “They
Washington Mobile, Ala.
doubt in the minds of many will become dis- mess with the Supreme Court, it’ll be changed
trusted by all.” If Mr. Bush made an election- just like that in my opinion.”
year nomination, Mr. Biden said his committee Losing vice presidential candidate Tim Kaine
should consider “not scheduling confirmation promised the same last October. “If these guys
hearings on the nomination until after the politi- think they’re going to stonewall the filling of
Tribe: Meritless Emoluments Clause Lawsuit
cal campaign season is over.” that vacancy or other vacancies,” Mr. Kaine said, Regarding Brian C. Kalt’s “The less demonstrate, any distinctive in-
Does anyone outside the MSNBC audience a Democratic majority “will change the Senate Emoluments Clause for Dummies” jury to itself or its members and that
think that had the roles been reversed in 2016, rules to uphold the law.” (op-ed, Jan. 25): In addition to the therefore lacks standing under settled
and a Democratic Senate faced a Republican Judge Gorsuch is such a distinguished nomi- substantial argument that the Emolu- Article III principles to litigate this
ments Clause does not apply to the matter . . . [T]he lawsuit . . . would
Court nominee, Harry Reid would have held a nee that he ought to be confirmed 100-0, but if
presidency itself and the related point invoke the jurisdiction of the federal
confirmation vote? As John McEnroe liked to Democrats try and fail to defeat him, the world that President Trump would only be courts to entertain an obviously non-
shout, “You can’t be serious!” should know that they are the authors of their subject to its terms if Congress, justiciable political question with re-
The “stolen” myth is being used to justify a own political frustration. through impeachment, so decided, a spect to which the political branches
careful reading of the constitutional are more than capable of defending
text also reveals that the prohibition their respective prerogatives without
Trump and American ‘Self-Confidence’ against receiving emoluments from the interference of the judicial

I
foreign governments may be excused branch.”
n 2015 David Petraeus surfaced from politi- This analysis won’t be news to anyone pay- with “the Consent of the Congress.” It There may be a creative way to
cal exile to warn about the “geopolitical ing attention. But Mr. Petraeus’s more troubling isn’t hard to imagine—whatever law- distinguish what Prof. Tribe said in
Chernobyl” of Syria and other rising global warning was about “a loss of self-confidence, suits may be ginned up targeting this 2014 from what he is advocating in
issue—that the Republican controlled 2017. In my opinion, however, the
dangers. Barack Obama ig- resolve and strategic clarity
Congress can address and resolve the only real distinction is the respective
nored the counsel, and let’s Obama ignored David on America’s part about our matter once and for all, as circum- target of the lawsuit. When President
hope President Trump won’t Petraeus’s advice. Will vital interest in preserving stances develop and warrant. Obama was the target, Prof. Tribe
repeat the error. and protecting the system we ROBERT W. RAY was opposed to embroiling the fed-
International order, Mr. Pe- the new President? sacrificed so much to bring New York eral judiciary in a matter that might
traeus said Wednesday before into being and have sacrificed Mr. Ray formerly served as White- be directly resolved between the
the House Armed Services so much to preserve.” water independent counsel. president and Congress. When, how-
Committee, is facing “unprecedented” and “in- World order can’t be taken “for granted,” he ever, President Trump is the target,
creasingly complex and serious threats” from said. “It did not will itself into existence. We The “emoluments lawsuit” against that opposition has vanished, even
what he called “revisionist powers.” By that he created it. Likewise, it is not naturally self-sus- President Trump that Prof. Laurence though the Constitution specifically
means actors challenging the postwar status taining. We have sustained it. If we stop doing Tribe supports calls to mind a 2014 entrusts approval/disapproval of pur-
letter that he wrote to the House ported emoluments to Congress, not
quo—the system of global alliances with the so, it will fray and, eventually, collapse.”
Rules Committee in which he said: the courts. As an attorney, I am dis-
U.S. as the anchor; the open, rules-based trad- Mr. Trump sent conflicting signals during “[T]he proposed lawsuit would repre- appointed by a shifting of legal prin-
ing system; and an American foreign policy that the campaign, sometimes seeming to endorse sent a wholly meritless attempt to in- ciples that appears to be guided by
promoted freedom and human rights. Mr. Obama’s withdrawal from the world mili- voke the jurisdiction of the federal ju- political preferences.
Mr. Petraeus’s revisionist powers include tarily and on trade, other times pledging a diciary at the behest of an institution ROBERT J. KAPLAN
China, Iran and Russia, which are “working to stronger assertion of American power such as that cannot plausibly allege, much New York
establish a kind of sphere of influence over rebuilding the military. But “Make America
their respective near-abroads.” Another is Is- Great Again” was a promise of patriotic re-
lamic radicalism, whose power owes to its “con- newal, and the world order that has protected Let the Locals Pay for and A Picture ID Won’t Keep
viction, resilience, resourcefulness and ferocity. U.S. peace and prosperity sure could use some Run Any Safe Zones in Syria Non-Citizens From Voting
In its hydra-like qualities, it is unlike any adver- repair. Mr. Petraeus is offering advice that the
From a humanitarian point of view, Voter fraud starts with registra-
sary we have faced before.” new President ignores at America’s peril. there is absolutely no question that tion. You don’t need to show proof of
safe zones should promptly be created citizenship to register to vote

The Political War on Sandwiches in the Middle East for refugees from
Syria and other war-torn nations in the
(“Trump Seeks Election Fraud Probe,”
U.S. News, Jan. 26). When states have

B
region (“Analysis: Syria Safe-Zone Idea tried to require proof of citizenship,
y now you’d think progressives might be many other small business owners and entre- Carries Risks for U.S.,” World News, the federal courts have blocked them.
absorbing the reality that Democrats lost preneurs have been afforded.” Mr. Patten said Jan. 27). But the U.S. shouldn’t be So while requiring picture ID to vote
the presidential election in part thanks to he discussed with the President how to “ensure charged with the responsibility for cre- and matching Social Security Admin-
a cultural intolerance that ha- these opportunities are avail- ating those zones, much less paying for istration death records to voter rolls
rassed anyone—from florists Progressives harass a able to even more people.” them. Just as the United Nations cre- will reduce voter fraud, neither of
ated the U.N. Relief and Works Agency these measures will prevent nonciti-
to CEOs—who disagrees with hoagie shop owner for This sounds like the civility
for Palestine Refugees in the Near East zens from voting.
them. Not so much: Witness and dialogue the left claims to (UNRWA) almost 70 years ago to pro- JOSEPH FETTE
the response to those associat- visiting the White House. prize, but the vitriol kept com- vide safe zones for Palestinian refu- Alexandria, Va.
ing with Donald Trump. ing. Mr. Patten says he at- gees—and the UNRWA zones or camps
On Monday Casey Patten, tended similar meetings with continue to exist with U.N. financing
co-founder of a Washington “handcrafted” hoa- the Obama Administration. even today—a similar program should Pepper ...
gie shop called Taylor Gourmet, attended Presi- A similar internet microdrama played out be adopted and financed by the U.N.
dent Trump’s signing of an executive order di- over the weekend with #DeleteUber. The New and all of its member states for the
And Salt
recting federal agencies to repeal two York taxi union declared a strike at John F. Ken- Mideast refugees of today. There is no THE WALL STREET JOURNAL
regulations for every new one issued. Mr. Patten nedy Airport to stand in solidarity with those conceivable reason why the U.S. alone
appeared in a photo with Mr. Trump and others, detained while entering the U.S. How refusing should be charged with either the re-
sponsibility or the costs of creating
which is the norm for these events. to offer rides to stranded travelers sticks it to
and maintaining such a program. Fur-
Then came the social-media denunciation Donald Trump is not clear. And Uber responded thermore, a U.N. failure to take such
and boycott campaign. Harry Stein, a breathless by turning off surge pricing, which increases responsibility on itself for the truly
staffer at the Center for American Progress, the cost of rides when demand is high, say, on desperate refugees of today can only
tweeted that Mr. Patten was “giving Trump a New Year’s Eve. raise the most serious doubts about
photo-op as Trump slams the door on immi- In other words, Uber offered cheaper rides continuing its financing of UNRWA for
grants,” and the boycott was on. “If you like than supply and demand would have allowed. second- and third-generation refugees.
having customers,” lectured one tweeter, The company has been accused, somehow, of ALLAN I. MENDELSOHN
“maybe *don’t* collaborate with a fascist re- breaking the strike and trying to profit off Pres- Washington
gime that opposes our human rights.” Monday’s ident Trump’s immigration ban. The irony is
event had nothing to do with Mr. Trump’s immi- that the moralists now deleting the Uber app Letters intended for publication should
gration order, and reducing what government will not be helping the thousands of immigrants be addressed to: The Editor, 1211 Avenue
of the Americas, New York, NY 10036,
can regulate isn’t the fast lane to autocracy. who drive for Uber. or emailed to wsj.ltrs@wsj.com. Please
Mr. Patten posted a statement on Taylor These outrages will soon be overtaken by include your city and state. All letters
Gourmet’s Twitter account that “America’s others, but the damage to the left may last lon- are subject to editing, and unpublished
strength comes from our diversity, our free- ger if boycotts and harassment make the public letters can be neither acknowledged nor “I see six more weeks
returned.
doms and the opportunities which I and so more sympathetic to Donald Trump. of climate change debates.”
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
THE WALL STREET JOURNAL.
Mexico’s Bad Luck Gets Even Worse
By Ruchir Sharma
M
exico is the unlucky
country. Time and
again its economy has
been poised to take
off, only to stumble
into crisis, sometimes of its own
making but often a result of the
forces unleashed by its gradual
opening to the U.S. The latest shock
arrived with Donald Trump and
peaked last week when a spat over
who will pay for “the wall” com-
pelled Mexico’s president, Enrique
If Trump pushes America’s
neighbor into a slump, no
wall will be high enough to
keep the immigrants out.
Peña Nieto, to cancel his first meet-
ing with the new White House.
Economists are already rushing to
downgrade Mexico’s growth pros-
pects for 2017.
Mr. Trump’s worldview is built on
a gut feeling that bad trade deals al-
low Mexico to profit at America’s
expense. Atop his agenda is renego-
tiating the North American Free
Trade Agreement, the 1994 deal that
turned the continent into a free-
trade zone. But it is difficult to ar-
gue that Nafta unfairly enriched
Mexico.
The big mystery, actually, is why
Mexico has not done better since
Nafta launched. Opening to the U.S.
did help to modernize the country,
putting it on track to emerge as the
most important manufacturing
Big-League Brother Is Watching, Say Orwell’s Unlikely New Fans
By Joseph Rago
P
ostelection trauma hasn’t sub-
sided. In fact, its sufferers
have been performing ever
more distraught and operatic dis-
plays of emotion. Witness the cot-
tage industry now dedicated to the
intersectionality between Donald
Trump and George Orwell.
As “1984” climbs the best-seller
lists, rising to No. 1 on Amazon,
critic after critic is meditating on
the literary rediscovery. What did
the 1949 novel predict, anticipate or
otherwise explain about the gather-
ing horrors of the Trump era? Are
the sales a comment on Kellyanne
Conway’s “alternative facts”?
The genre is heavy on adjectives
and adverbs, like “harrowing” and
“chillingly.” Other dystopian novels
are invoked—Sinclair Lewis’s “It
Can’t Happen Here” (1935), Philip
Roth’s “The Plot Against America”
(2004)—but Orwell is the presiding
visionary: newspeak, the memory
hole, the fragile veneers of democ-
racy and objective truth, the under-
appreciated dangers of a dictator
consolidating power.
Washington Post book reviewer
Ron Charles staged a dramatic video
reading of “eerily relevant” passages
from “1984,” some of which are
“now essentially happening,” he in-
tones, accompanied by spooky string
music.
Adam Gopnik, in the New Yorker,
Voter Fraud a Myth? That’s Not What New York Investigators Found
By Larry Levy
P
resident Trump’s promise to
investigate voter fraud has
drawn predictable responses
from Democrats and the media, who
insist there is no such thing and
have been fighting for years to pre-
vent any inquiry into the matter. But
an investigation in Mr. Trump’s
hometown shows that the problem is
real.
In 2013 the New York City Depart-
ment of Investigation—the storied
law-enforcement arm of city govern-
ment, which houses and manages all
the city’s inspectors general and in-
vestigators—decided to test the sys-
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power in Latin America. But it
hardly made Mexico rich.
Since 1994, Mexico’s economy has
grown at an annual rate of about
2.5%—half the average for emerging
countries over the same period. The
average Mexican’s income is only a
quarter the average American’s, no
higher in relative terms than 20 or
even 100 years ago.
Mexico’s string of unlucky stum-
bles dates to at least 1994. As
Nafta went into effect, a sharp rise
in U.S. interest rates prompted in-
vestors to pull money out of Mex-
ico, leading to the peso crash that
December. Because Mexico’s gov-
ernment had begun issuing bonds
that it promised to pay in dollars,
it needed a bailout when the peso
collapsed. Bankruptcies spread, and
the economy fell into a massive re-
cession.
As often happens after a crisis,
Mexico recovered sharply, and in the
late 1990s its economy grew in close
sync with America’s. But right as its
luck started to turn, the next shocks
hit. In 2001 the U.S. fell into reces-
sion, dragging Mexico along, and
China entered the World Trade Or-
ganization. Manufacturers began
moving to China at an accelerating
pace to take advantage of wages
that were a fraction of Mexico’s.
Over the next decade, many
emerging economies were lifted by
surging prices for oil and other
commodities, as well as a tide of
easy credit from Western banks.
Mexico was not among the lucky,
its growth stymied by the declining
production of its state oil company,
Pemex, and by a cultural fear of
debt contracted during the peso
crisis. While other emerging econ-
confessed that he once believed
“1984” didn’t qualify as prescient,
because its world is “too brutal, too
atavistic, too limited in its imagina-
tion of the relation between authori-
tarian state and helpless citizens.”
Not anymore! He recanted after
watching “how primitive, atavistic,
and uncomplicatedly brutal Trump’s
brand of authoritarianism is turning
out to be.”
Yet if Americans who buy “1984”
actually read and think about it,
maybe the irony will be that U.S. po-
litical fevers start to break. Any lit-
erate person can recognize that the
analogies between Mr. Trump and
Big Brother are, not to put too fine a
point on it, preposterous.
The terror of “1984” is that the
state has achieved total control of
society, oppression so absolute as to
obliterate the independent mind. “It
is intolerable to us that an erroneous
thought should exist anywhere in the
world, however secret and powerless
it may be,” the torturer O’Brien tells
Winston Smith in Room 101. “The
command of the totalitarians was
‘Thou shalt.’ Our command is ‘Thou
art.’ ”
Were Big Brother watching today,
he might begin by liquidating the
tens of thousands of people commit-
ting the thoughtcrime of acquiring
“1984.” Instead, many of those pur-
chases are delivered by government-
employed mailmen. He might silence
the mass street protests, or dispatch
tem. City investigators posed as 63
ineligible individuals still on the city
voter rolls. Each ineligible voter had
died, moved out of the jurisdiction,
or been convicted of a felony at least
two years earlier.
The investigators didn’t go to
great lengths to hide their attempted
fraudulent votes. In five instances in-
vestigators in their 20s or 30s posed
as voters age 82 to 94. In some cases
the investigators were of different
ethnic backgrounds from the voters
they were impersonating. Yet each
was given a ballot and allowed to
cast a vote without question.
In other instances the investiga-
tors informed the poll worker that
Robert Thomson
Chief Executive Officer, News Corp
William Lewis
Chief Executive Officer and Publisher
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Professional Information Business:
Christopher Lloyd, Head;
Ingrid Verschuren, Deputy Head
OPINION
omies grew rapidly by exporting to
booming China, Mexico grew mod-
erately by exporting to the U.S.
When the 2008 financial crisis be-
gan in America, Mexico became
one of the first casualties in the
emerging world.
Still, Mexico had not given up on
closer ties to the U.S. Its elites re-
mained believers in the Washington
consensus of open borders, free
markets and budget discipline. In
2012 Mexicans elected Mr. Peña Ni-
eto, a growth-oriented reformer who
promised to reduce the influence of
monopolists, including Pemex.
By 2014 these reforms looked
ready to generate the long-sought
boom. The government expected
huge revenues from an auction of oil
drilling rights, including to big
American firms. But later that year
the secret police to Adam Gopnik’s
apartment. Yet somehow the clocks
aren’t even striking thirteen.
Mr. Trump’s immigration order is
harsh. The refugee policy in “1984”
is somewhat harsher. Winston writes
in his diary about seeing a war film
about “a ship full of refugees being
bombed somewhere in the Mediter-
ranean. Audience much amused by
The Trump era may not
be morning in America,
but it’s preposterous
to suggest it’s ‘1984.’
shots of a great huge fat man trying
to swim away with a helicopter after
him. First you saw him wallowing
along in the water like a porpoise,
then you saw him through the heli-
copters gunsights, then he was full
of holes and the sea round him
turned pink . . . then you saw a life-
boat full of children with a helicop-
ter hovering over it.” Fantasizing
yourself into this hellscape is proba-
bly melodramatic and self-indulgent.
Some Orwell revivalists—not all—
allow that “1984” isn’t literally afoot,
or that it is a matter of degree.
There’s usually innuendo, like Mr.
Charles’s grace note that U.S. citi-
zens “still, for the moment at least,
enjoy the right to object.”
they had moved but didn’t have time
to get to their new home on Election
Day; all but one was allowed to vote.
Only one investigator was flat-out
rejected. He had the misfortune of
trying to vote at a polling place
where the clerk was the mother of
the ineligible felon he was imperson-
ating.
Ninety-seven percent of the barely
disguised phony voters were allowed
to vote unimpeded, and none was re-
ferred for criminal charges or offi-
cially reported to the Board of Elec-
tions. One can only imagine what a
sharp operator trying to fix an elec-
tion could do by flooding polling
places with ineligible voters.
The Department of Investigation
proved how easy it is to perpetrate
such a fraud. More important, it
Notable & Quotable: ‘Oops’
Former New York Gov. Eliot
Spitzer, a Democrat, in “10 Ways to
Take On Trump,” a Feb. 1 New Re-
public symposium:
The federal government’s capacity
to undercut rights granted by the
states is very limited. . . . Our ability
to expand those rights to universal
status across the nation may be lim-
ited, given the changing makeup of
the Supreme Court. But the Consti-
tution will not be interpreted in a
way that denies a state the right to
extend marriage rights or voting
rights to certain individuals. . . .
There are other areas where it’s
going to be much harder for states
Thursday, February 2, 2017 | A17
PHIL FOSTER
oil prices collapsed and dragged the
growth rate down to 2%.
Mr. Peña Nieto persisted, and by
the middle of last year, the oil shock
had faded. Mexico was growing at a
healthy 3%, and unemployment was
falling sharply. Then came President
Trump. Now businesses are putting
investment on hold until they see
what the White House will do. But
shoving Mexico too hard on trade
could backfire.
Economists already expect Mex-
ico’s growth this year to dip below
2%, and unemployment could start
rising again. This would send more
Mexicans northward. The flow of
immigrants had slowed signifi-
cantly in recent years as job oppor-
tunities and wages rose in Mexico.
More than the wall, the best way to
keep immigrants from crossing the
But what makes these pieces cari-
catures of anti-Trump solipsism is
that “1984” may be the single most
useless guide to the political hour.
Orwell took the most abusive ten-
dencies of the Soviet Union, Nazi
Germany and postwar Britain and
amplified them to infinity. In a 1949
statement, he wrote that he wanted
to draw out “totalitarian ideas . . . to
their logical conclusion.” That stark
clarity is why the book is compel-
ling—and suitable for high-school
reading lists—though at the expense
of steamrolling the complexity and
elusiveness of the real world.
But any idea is absurd when taken
to its logical conclusion, because
ideas are contingent and contextual.
Orwell didn’t invent the slippery
slope, but he did create a set of
tropes—now clichés—meant to dis-
credit ideas and political conven-
tions by comparing them to extreme
versions that they don’t really re-
semble.
A political aide who spins, or cor-
rupts language for her political ben-
efit, as all political aides have done
for all of human history? Why, it’s
the Ministry of Truth in action. A
false claim about inauguration crowd
size—of zero practical import and
now superseded by fresh outrages—
is transformed into the Party’s as-
sertion of reality control. “1984” is a
template for making anything seem
sinister, even if six degrees of sepa-
ration are different from 60, or 600.
showed that such illegal behavior
doesn’t get reported or corrected.
When the department published its
report, the Board of Elections took
Only one fake voter was
refused a ballot. The clerk
was the mother of the felon
he was impersonating.
no steps to prevent future fraud. In-
stead, the board complained that the
investigators engaged in voter fraud
and should be prosecuted. The dis-
trict attorney refused to charge the
investigators for their productive
and lawful investigation.
to retain their power, though. If the
federal government wants to wield
its full authority on immigration, for
example, it will be hard for states to
object, because that’s an area where
the courts have said the government
has a clear capacity under the Con-
stitution to do what it wants. An-
other problem is that over the past
decade, we’ve argued in court in fa-
vor of administrative latitude in de-
cision-making. Now, by asserting the
primacy of states rights, we’re flip-
ping that argument on its head. How
do we go back to all these cases
where we’ve been arguing for execu-
tive discretion and say, “Oops, we
didn’t mean it”?
border is to give them reasons to
stay home.
North American supply chains are
so tightly interwoven that 80% of
Mexican exports go to the U.S.—and
40% of the parts those exports con-
tain are made in the U.S. Fourteen
states now count Mexico as their
main trading partner, including an-
chors of the angry middle class like
Michigan, which catapulted Mr.
Trump to victory.
Mexicans also have an intense
streak of anti-gringo patriotism.
This had waned in recent years as
the two countries’ economies be-
came intertwined. The feeling I got
during a recent visit is that many
Mexicans felt they had been moving
toward becoming the honorary 51st
state before Mr. Trump barged in
vowing to expel them.
Delivering on Mr. Trump’s threats
could revive latent Mexican nation-
alism and play into the hands of a
populist politician like Andrés Ma-
nuel López Obrador, a firebrand who
is gaining momentum as Mexico’s
2018 presidential elections ap-
proach. Mr. Peña Nieto’s approval
rating has fallen to 12%, partly be-
cause many Mexicans fault him for
failing to stand up to Mr. Trump.
Still, nationalism can’t fill an empty
stomach. If Washington pushes Mex-
ico into a deeper slump, no wall
could be high enough to prevent
Mexican immigrants from trying to
escape their unlucky land.
Mr. Sharma, the chief global
strategist at Morgan Stanley Invest-
ment Management, is the author of
“The Rise and Fall of Nations:
Forces of Change in the Post-Crisis
World” (Norton, 2016).
“If you want a picture of the fu-
ture,” O’Brien says, “imagine a boot
stamping on a human face—for
ever.” At worst, the Trump correla-
tive is an overlong infomercial for
steaks and herbal supplements.
Reading Mr. Trump on the “1984”
spectrum is not a formula for under-
standing. His administration more
than most will feature ambiguity,
imprecision, exaggeration and intel-
lectual contradiction. Avoiding ana-
lytic failure will require more sub-
tlety and distinction-making, not
less. After the mismanaged immigra-
tion rollout, a more intriguing ques-
tion is whether Mr. Trump has the
competence to become even a run-
of-the-mill strongman.
Meanwhile, the intellectuals who
think they’re living in Airstrip One
might ponder how effective nonstop
hyperpanic is as a form of resis-
tance, or how it comes off to normal
nonpolitical people. The chimera of
autocracy isn’t likely to persuade
those whose daily lives bear no re-
semblance to “1984,” and they
might well conclude about Mr.
Trump’s opponents: “Not merely the
validity of experience, but the very
existence of external reality, was
tacitly denied by their philosophy.
The heresy of heresies was common
sense.”
That’s a passage from “1984.”
Mr. Rago is a member of The Wall
Street Journal’s editorial board.
Last year a Democratic New York
election official, Alan Schulkin, was
forced to resign after he was caught
on tape telling the truth about elec-
toral process. “Certain neighbor-
hoods in particular, they bus people
around to vote,” Mr. Schulkin said.
“They put them in a bus and go poll
site to poll site.” In another case a
local polling official reported to the
police that a group of men had ap-
parently voted more than once, while
others were told they couldn’t vote
because their ballots had already
been cast. The police response, ac-
cording to press reports, was that
they don’t investigate alleged voter
fraud.
In 2014 President Obama’s bipar-
tisan Presidential Commission on
Election Administration concluded
that maintaining accurate election
rolls was a key part of the demo-
cratic process. Yet subsequent ef-
forts to do so has led to claims of
voter suppression, thereby stalling
progress.
And while New York does not re-
quire identification to vote, its regis-
tration requirements are fairly strict
and there is no such thing as same-
day registration. Many states are
less stringent, which would make the
opportunities for fraud greater.
America has a flawed voting sys-
tem that is susceptible to fraud and
has few precautions against it. A fed-
eral investigation could go a long
way toward ensuring citizens U.S.
elections are honest.
Mr. Levy is vice chairman of the
Republican National Lawyers Associ-
ation.
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TECHNOLOGY: IPHONE FACES BRUTAL MARKET IN CHINA B5

BUSINESS & FINANCE

© 2017 Dow Jones & Company. All Rights Reserved. * * * * THE WALL STREET JOURNAL. Thursday, February 2, 2017 | B1

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Ad Push Props Facebook Revenue

BY DEEPA SEETHARAMAN ter, jumping from $3.73 a year
Facebook Inc. squeezed
nearly 30% more revenue per
earlier, Facebook said Wednes-
day, helping send the com-
pany’s revenue up 51% to $8.81
user in the fourth quarter,
pumping its advertising mus-
cle ahead of an anticipated
billion.
Facebook’s shares were up
1% at $134.59 in after-hours
slowdown in growth later this trading on Nasdaq.
year. In 2016, Facebook added
Users spent more time nearly 270 million users,
watching videos on Facebook bringing its monthly user base
and its photo-sharing app In- to 1.86 billion, the strongest
stagram, providing the social increase in the number of us-
media giant with more slots ers since Facebook went pub-
for ads. That built on growth lic in 2012. Most of the growth
in mobile advertising that in users came from outside the
Facebook has been taking ad- U.S., such as in the Asia-Pa-
vantage of for several years. cific region. However, the U.S.
Each user generated $4.83 and Canada were the source of
in revenue in the fourth quar- its increase in revenue.
“In most mature markets,
to see people come on the
platform more often, that’s a
very good trend,” said JMP
Securities analyst Ron Josey.
“And the mature markets are
your most profitable.”
Facebook’s quarterly profit
leapt to $3.57 billion from
$1.56 billion a year earlier.
Facebook was at the center
of political discourse during
the fourth quarter, as voters,
media organizations and pres-
idential candidates flooded the
site with posts. Yet political
advertising stemming from
the U.S. presidential election
had a limited effect on Face-
book’s business during the
quarter, Chief Operating Offi-
Pension
Ousted
Face Time
cer Sheryl Sandberg said dur-
ing a conference call. Political
spending—even in the U.S.—
Facebook's quarterly revenue
$10 billion
Another
didn’t crack the top 10 adver-
tising categories for Facebook
during the fourth quarter, she 8
4Q 2016
$8.8B
In Scandal
said. ▲51% BY JUSTIN BAER
“No one event is that big
6
for our business,” she said. The day after federal prose-
The promotion of video cutors accused former New
across Facebook and its apps 4 York state pension executive
reflects what Chief Executive Navnoor Kang of taking bribes,
Mark Zuckerberg calls a 2 the retirement system fired
“video-first” strategy. Mr. another employee in connec-
Zuckerberg has directed the tion with the case, said people
Please see PROFIT page B2 0 familiar with the matter.
2013 ’14 ’15 ’16 The New York Common Re-
 Heard on the Street: Have we Source: the company tirement Fund escorted Philip
seen peak Facebook?.......... B12 THE WALL STREET JOURNAL. Hanna from the pension’s Al-
bany offices on Dec. 22 with-
out giving him a reason for his

Cooling Sales Put Auto Makers on the Spot

termination, these people said.
Mr. Hanna reported to Mr.
Kang, and the two were close
friends, they said.
A 2% drop for January The men were college class-
mates at the University of
and blistering output Texas’ Arlington campus and
mean more discounts later started their own spirits
company called Secrets Vodka
—or possibly layoffs LLC, according to these people
and state filings.
BY ADRIENNE ROBERTS U.S. prosecutors allege that
AND MIKE COLIAS Mr. Kang hid laptops contain-
ing evidence of his crimes at
Many new vehicles are lan- the home of a colleague. That
guishing at U.S. dealerships, as colleague—identified in the in-
auto makers produce cars at a dictment as “co-conspirator
near-record clip amid soften- 1”—was Mr. Hanna, according
ing demand. to the people familiar with the
U.S. auto sales slipped 2% in case. Last month, the federal
January compared with the judge presiding over Mr.
same period a year ago, accord- Kang’s case wrote in a court
ing to Autodata Corp. The sea- filing that prosecutors planned
sonally adjusted annual sales to disclose information found
rate outpaced analyst expecta- on computers “recovered from
tions, but it was the fourth time the residence of the individual
ALAN DIAZ/ASSOCIATED PRESS

in the past six months that vol- identified as ‘CC-1,’ which

umes slumped from the prior were obtained pursuant to
year despite generous incentives. search warrants.”
The results are forcing De- Mr. Hanna hasn’t been ac-
troit car companies and for- cused of wrongdoing. A person
eign rivals to more directly close to him said Mr. Hanna
confront a tough strategic de- wasn’t aware Mr. Kang’s lap-
cision: Keep ratcheting up dis- tops contained potential evi-
counts to spur showroom traf- Demand for expensive pickups bolstered average transaction prices in January. Above, a Ford dealership in Hialeah, Fla., last month. dence related to a federal in-
fic, or lay off workers so vestigation.
production can more closely The $183 billion fund is
mirror underlying demand. January Chill wrestling with “pay to
Both options come with a U.S. new-vehicle sales at most manufacturers cooled down after a strong December as generous incentives failed to spur demand. play” allegations for the sec-
cost. While incentives move ond time in a decade. At issue
metal, they cut into margins Vehicle sales by company in Janurary 2017 Per-vehicle incentives is whether those entrusted to
and threaten to undermine con- $4,000
Jan 2017 oversee huge pools of retire-
sistent pricing increases the in- $3,635 ment money for public work-
dustry has notched in recent ers are picking money manag-
years. Slowing assembly lines 3,000 ers, brokers and other service
eats up cash because under- providers based on political or
used factories still require large 195,909 171,186 152,218 143,048 112,319 106,380 2,000 personal connections.
amounts of capital to maintain. CHANGE FROM A YEAR EARLIER In 2010, former New York
Discounts and rebates 1,000 state Comptroller Alan Hevesi
equaled $3,635 per car on av- pleaded guilty to accepting
erage last month, according to
ALG, far exceeding incentive
3.8% 0.7% 11.2% 11.3% 6.2% 5.9% 0
nearly $1 million in travel and
other benefits from a Califor-
spending in January 2016 and 2015 ’16 nia money manager who won
representing a 10% discount Sources: the companies (sales); ALG (incentives) THE WALL STREET JOURNAL. $250 million in investments
off the initial asking price. from the state pension fund.
ALG, a data provider owned plants continue building an in- mate. RBC Capital Markets es- build inventory early in the light on inventory until late Now, investigators at the
by TrueCar Inc., said average creasing amount of stock even timates the industrywide year in advance of the warmer last year and has begun cutting New York state Comptroller’s
transaction prices were stronger as a seven-year stretch of sales number is nearly 10% higher months, many say they have far shifts and thousands of jobs at Office, along with the fund’s
in January than a year ago—re- growth is grinding to a halt, than what is typical. too many sedans and compact certain car plants to address inspector general, are con-
flecting brisker sales of expen- leading to an industrywide in- The problem is especially cars, both of which have lost the glut. Still, it is boosting ducting a review of the lat-
sive trucks—but prices fell 3% ventory average equivalent to acute among the Detroit 3, popularity as gasoline prices truck output in anticipation of est allegations concerning Mr.
compared with December levels. three months’ supply, accord- where supply exceeds 100 days’. remain low. an even stronger appetite for Kang, one person familiar with
North American assembly ing to a WardsAuto.com esti- While auto makers typically General Motors Co. had run Please see AUTOS page B2 Please see FUND page B2

Super Bowl INSIDE PERSONAL TECHNOLOGY | Geoffrey A. Fowler

Ads Walk
A Political
Free Your Brain From Social Media
Mindlessly
Tightrope checking
Facebook
BY SUZANNE VRANICA makes you an
awful lot like
Anheuser-Busch InBev NV a lab rat ha-
didn’t intend to wade into po- bitually pressing a lever hop-
litically controversial waters
with its Super Bowl ad for
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When you check your
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The world’s largest brewer
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is set to air a 60-second TV on Facebook! No? Reload.
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that Bud stands “for those brains can resist the ways
people that have a dream and apps hijack our brains, if we
work very hard until they learn a few coping skills.
make the dream come true,” Are Facebook or Twitter
said Marcel Marcondes, vice “addictions”? Emerging sci-
CARL WIENS

president of U.S. marketing at entific research about social

Anheuser-Busch. media doesn’t agree on that
The company said the spot term, but evidence that we
isn’t intended to make a politi- aren’t coping well is on dis-
cal statement, but it will air at
a time of intense controversy
U.K.’S RECKITT play at dinner tables where
everyone is staring at finds Americans age 35 to 49 Pre-coffee, half awake, I’d lie what actually would help me
over immigration, inflamed by IN TALKS FOR screens, and at crosswalks spend nearly seven hours a there for an hour with my pull back from the brink.
President Donald Trump’s ex-
ecutive order suspending im-
MEAD JOHNSON where distracted pedestrians
walk into traffic.
week on social media—more
than younger generations.
phone, pulled into the vor-
tex. So I called up psycholo-
Surprisingly, they didn’t
recommend a cold-turkey
migration from seven Muslim- Don’t blame the millenni- I became mindful of my gists, brain scientists and digital detox. What you need
Please see ADS page B2 DEALS, B3 als. A new Nielsen study early-morning bad habits. app designers for advice on Please see TECH page B5
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B2 | Thursday, February 2, 2017
INDEX TO BUSINESSES
These indexes cite notable references to most parent companies and businesspeople
in today’s edition. Articles on regional page inserts aren’t cited in these indexes.
A
Abercrombie & Fitch...B4
AlixPartners................B2
Allstate ..................... B10
Alphabet......................B4
Altria Group................B4
Anheuser-Busch InBev
............................... B1,B4
Apple....................B5,B11
Autodata.....................B1
B Honda Motor...............B2
Banco Bilbao Vizcaya
Argentaria.................B6
BlackRock..................B10
Blackstone Group ..... B11
C from entering the U.S. for 90
Cargill..........................B4
Carlyle Group............B10
Chipotle Mexican Grill
...................................B11
Constellation Brands B11
D Lincoln National........B10
Danone ........................ B3
Dawlance.....................A9
E
Electronic Arts....A2,B12
F pharmaceutical firm based in
Facebook..............B1,B12
Fiat Chrysler
Automobiles ............. B2
First Horizon National
.....................................B2
INDEX TO PEOPLE
A Hevesi, Alan................B1
Adamson, Allen .......... B2
Aggarwal, Rajeev
“Reggie”....................B4
Anderson, Stephen...B11
B Kaeser, Joe..................B2
Barry, Jim..................B10
Basilico, Paolo...........B11
D Kassai, Husayn...........B2
Denner, Volkmar.........B3
Dixmier, Franck.........B11
Dwane, Neil...............B11
F L
Fields, Mark................B4
Fink, Laurence...........B10
H M
Hanna, Philip...............B1
AUTOS
Continued from the prior page
pickups and SUVs in 2017.
Even with low gasoline
prices, GM and others are work-
ing harder to earn truck sales.
Chevrolet, GM’s mainstream
brand, is offering $7,500 on
some popular 2017 Silverado
pickups, up from $3,500 last
month, according to a document
sent to dealers Wednesday.
GM’s January sales fell 3.8%
compared with a year earlier,
with 195,909 deliveries repre-
senting the lowest volume for
the No. 1 U.S. seller since Jan-
uary 2014. Ford Motor Co. re-
ported a more modest 0.7%
decline.
Some analysts argue a cau-
tious approach is needed.
“This isn’t a one or two month
thing,” said Mark Wakefield, a
co-leader in AlixPartners
LLP’s automotive practice. He
said even though some auto
FUND
Continued from the prior page
the matter said. The pension
fund has hired an outside con-
sultant to help vet its brokers
and has placed all of its rela-
tionships with securities firms
under review, one person said.
The fund has also ceased all
trading with Stifel Financial
Corp. and FTN Financial, ac-
cording to a person familiar
with the matter. Those two
firms employed salespeople
who have been accused of
bribing Mr. Kang.
Philip Hanna,
left, knew
SERGIO MARTINEZ
Navnoor Kang
long before
they worked
for New York’s
pension fund.
A Stifel spokesman said the
firm had inherited the prob-
lem when it acquired Sterne
Agee, which employed one of
the two salespeople accused of
bribing Mr. Kang.
“Our report to the SEC
started their investigation,”
the spokesman said. “We re-
spect the decision of our client
but believe that we responded
appropriately to the circum-
stances.”
A year before he joined
New York’s state pension fund,
Mr. Kang had been fired from
the money-management arm
of Guggenheim Partners, ac-
cording to U.S. authorities and
people familiar with the mat-
* *** THE WALL STREET JOURNAL.
BUSINESS & FINANCE
First Reserve ............ B10
Franklin Resources ... B12
G
PineBridge Investments
...................................B11
R
Trump Travel Ban Shakes Businesses
General Motors ..... B1,B2 RBC Capital Markets..B1
BY RACHEL FEINTZEIG
Global Infrastructure AND ROBERT MCMILLAN
Reckitt Benckiser Group
Partners..................B10 .....................................B3
GoDaddy......................B2 As they scramble to adapt
S to a White House ban on travel
Greenwich Associates B6
Guggenheim Partners.B2 SABMiller....................B4 for foreign nationals of seven
Secrets Vodka.............B1 countries, companies are re-
H
Siemens.......................B2 thinking how their employees
travel the globe and do busi-
SkyBridge Capital.......A4
I Social Finance.............B6 ness beyond U.S. borders.
The order, which restricts
Invitation Homes......B11 Spark Therapeutics.....B2
people from seven countries
J Stifel Financial............B2
viewed as terrorism threats
J.P. Morgan Chase......B6 T
K Tesla Motors...............B4 days, sent companies rushing
Kairos Partners.........B11 Toyota Motor..............B2 to figure out which of their
T. Rowe Price............B12 workers were affected. Alpha-
L
TrueCar........................B1 bet Inc.’s Google quickly ar-
Land O'Lakes .............. B4 Twitter...................B1,B2 ranged to bring an employee
LifeLock.......................B6
JOHN ANNETT/ONFIDO
U back to the U.S. over the week-
end and has urged its 200-odd
Under Armour.............B3
M affected employees not to
Mars............................B3
V travel for the time being, ac-
Mead Johnson Nutrition Vanguard...................B12 cording to a person familiar
.....................................B3 Vivo ............................. B5 with the company.
MetLife......................B10 Volkswagen.................B3 Spark Therapeutics, a Employees at tech startup Onfido have been discussing the potential impact of the travel order.
N W
Philadelphia, has told some
Nestle..........................A9 WeatherTech...............B2
Nissan Motor..............B2 WSFS Financial...........B6
workers to think carefully Siemens CEO Frets trial manufacturers, many of commenting on politics in their
about traveling to Europe for which have relied heavily on the overseas markets—no more so
O-P Z an industry conference this About America U.S. for sales and as a place for than within the button-down
Onfido..........................B2 Zenbanx Holding.........B6 week. investment. Siemens is a big corporate culture that prevails in
The executive order affects U.S. employer, with 50,000 export-dependent Germany.
citizens of Iran, Iraq, Libya,
Somalia, Sudan, Syria and Ye-
men. Amazon.com Inc., which
MUNICH—The chief execu-
tive of Siemens AG, one of the
biggest foreign corporate inves-
workers in the country.
Last year, Mr. Kaeser voiced
optimism about the business
The CEO of the industrial
conglomerate said such caution
shouldn’t mean avoiding all criti-
MacNeil, David............B2 employs 49 nationals of those tors in the U.S., took aim at the impact of President Donald cism of Mr. Trump. “One must
Horowitz, Fran............B4 Marcondes, Marcel.....B1 countries in the U.S., has in- Trump administration Wednes- Trump’s election. But on not mix up prudence with ges-
Hund-Mejean, Martina Martinez,Arthur..........B4 structed a U.K.-based Libyan- day—singling out its moves on Wednesday he changed tack in tures of servility,” Mr. Kaeser
.....................................B6 Menear, Craig..............B4 born senior lawyer to cancel a immigration and offering some comments ahead of Siemens’s said. Alluding to Germany’s Nazi
Musk, Elon..................B4 U.S. visit in February. of the toughest criticism yet by annual shareholder meeting and Communist past, he said:
K
P Companies are finding an overseas business leader. here. He took aim at Mr. “Perhaps we Germans are a bit
workarounds. Managers say “What we are seeing wor- Trump’s executive order Friday sensitive when it comes to
Kang, Navnoor............B1 Piepszak, Jennifer......B6 they may scrap plans to bring ries us,” Chief Executive Joe that suspends entry to the U.S. walls and race.”
Policinski, Chris .......... B4 foreigners to the U.S. for inter- Kaeser said. “America became for refugees and restricts visi- The Trump administration
Kapoor, Rakesh...........B3
R views and training, while Ama- great through immigrants… I tors from seven countries argues the travel restrictions are
Kelley, Deborah...........B2 Rechterman, Barb.......B2 zon and others say they are hope that this great country will viewed as terrorism threats. needed to keep the U.S. safe
making plans to place some recall what has made it great.” Mr. Kaeser appeared eager from potential terrorists, and
Kelly, Michael ........... B11 S
hires from those seven coun- Mr. Kaeser is prominent to explain his criticism, a stark says the measure has broad
Kennedy, Brynne.........B2 Schonhorn, Gregg.......B2 tries in offices outside the U.S. among a clutch of executives departure from the reluctance support.
W For a global business com- running Germany’s large indus- multinationals often show in —Friedrich Geiger
Lachky, Bob.................B2 Wakefield, Mark.........B2
munity reliant on workers’
Lefkowitz, David.......B11 ability to crisscross the globe
Watters, Kevin............B6
on short notice, the executive business in,” said Brynne Ken- he will be able to return. travel. A fifth of respondents
Y order—which President Donald nedy, chief executive of em- He has spent the last few said the ban was already caus-
MacLennan, David......B4 Yan, James..................B5 Trump said was needed to ployee-relocation firm MOVE days conferring with attorneys ing their travelers difficulty.
keep terrorists from entering Guides. Ms. Kennedy’s firm about his situation, along with Companies are also girding
the U.S.—has been an abrupt fielded inquiries from dozens the status of two other Iranian for tighter restrictions on
makers are taking steps to
curtail supply, it only takes
one to offer bargains and the
rest of the market will follow.
wake-up call. Congress and
many U.S. immigration officials
were also caught off guard.
Though companies say rela-
of clients following the signing
of the order, and is advising
multinational employers to
consider moving U.S.-based
staffers. He has assured the
two that their jobs aren’t in
danger, though they might
have to relocate to London. Mr.
skilled-worker visas through
the H-1B program, which has
drawn criticism from Republi-
can lawmakers. Andrew Green-
Much like industry leaders a tively few of their employees meetings and projects abroad Kassai said he and his Iranian field, a partner at law firm
decade ago, today’s auto execu- are affected, White House offi- to Toronto or London. colleagues know what it is like Fragomen, Del Rey, Bernsen &
tives increasingly are betting cials have hinted that other Husayn Kassai, the CEO of to live amid political uncer- Loewy LLP who advises corpo-
on pickup trucks and sport util- countries may be added to the tech startup Onfido Inc., trav- tainty, “we just never expected rate clients on immigration is-
ities, which represent more travel ban, and rumors of els often between the com- America to be like this.” sues, said that tighter restric-
than 60% of light-vehicle sales changes coming to foreign- pany’s San Francisco and Lon- A poll of 260 business- tions could prompt companies
in the U.S. That compares with worker visa programs have don offices. But Mr. Kassai, a travel managers conducted to find ways to have fewer
51% in January 2014, just before businesses bracing for more California-based permanent over the weekend by the Asso- U.S.-based staff.
sharp declines in gas prices. uncertainty. resident who holds both U.K. ciation of Corporate Travel Ex- —John Simons, Jack Nicas,
Toyota Motor Corp. re- “Companies are preparing and Iranian citizenship, says ecutives found that 39% of Laura Stevens and Peter
ported an 11.3% decline in Jan- to do business in an era where he may cancel a trip to London those surveyed said the travel Loftus contributed
uary, blaming the performance the U.S. might be harder to do next week, since he is unsure ban will reduce their corporate to this article.
in part on strong December re-
sults and a lack of luxury SUVs.
Honda Motor Co. and Nissan
Motor Co. both reported sales
increases of roughly 6%.
Fiat Chrysler Automobiles,
PROFIT
which discontinued two pas- Continued from the prior page
senger-car lines last year, re- company to weave video
ported an 11.2% swoon in Jan- across all its products in re-
uary. Even with the slump, the cent months, an initiative re-
company is reporting stronger sembling Facebook’s big push
margins in North America. on mobile around its public of-
—Anne Steele fering in 2012.
contributed to this article. “I see video as a mega
trend on the same order as
mobile,” Mr. Zuckerberg said
ter. Guggenheim took that ac-
tion after learning Mr. Kang
accepted concert tickets and
Wednesday.
Nearly every product team
at Facebook is working on
ANHEUSER-BUSCH
other perks from bond sales- video projects, including a
people, including Gregg video-centric app for set-top
Schonhorn, according to pros- boxes. Facebook is promoting
ecutors and these people. longer videos in its news feed,
Mr. Schonhorn, who worked A Super Bowl ad for Budweiser beer dramatizes the arrival of Adolphus Busch in America in 1857. and late last year, it rolled out
at FTN Financial, was also in- a video-only tab for U.S. users.
dicted by U.S. prosecutors as
part of the same case. He be-
gan cooperating with the gov-
ernment in July 2016 and
ADS the Budweiser ad could be
risky. “It could potentially
alienate part of their audi-
ence,” said Thomas Ordahl,
“We didn’t want to add to
what is an already politically-
charged, divisive climate,” said
Barb Rechterman, GoDaddy’s
Facebook is also paying cre-
ators directly to make videos
for Facebook and eventually
plans to share revenue with
pleaded guilty on Dec. 15. Continued from the prior page chief strategy officer at brand- chief marketing officer. publishers in the future. Mr.
A spokeswoman for FTN, a majority nations because of ing firm Landor. WeatherTech, which makes Zuckerberg hopes the tab will
unit of First Horizon National concerns about terrorists en- Mr. Marcondes said the car floor mats and other auto encourage users to turn to
Corp., said the charges to tering the U.S. company won't be “apologetic” accessories, will use its Super Facebook not only for news
which Mr. Schonhorn pleaded It is always a risk for compa- for the spot. “The story is the Bowl TV spot to tout that its and updates from friends, but
guilty “reflect a betrayal of nies to air Super Bowl ads that truth, it’s not fiction,” he said. products are made in the U.S. also entertainment.
FTN and its values.” The firm touch on sensitive social issues. Building-material retailer Mr. Trump has promised to Facebook has also been de-
fired him on Dec. 21, the day But every now and then there 84 Lumber said it had an ad boost domestic manufacturing veloping virtual reality capa-
of the indictments. are national moments that are rejected by Fox, this year’s Su- and job creation, and some of bilities, which Mr. Zuckerberg
Mr. Kang and Deborah Kel- particularly perilous for his tactics—calling out specific has predicted will be the next
ley, the former Sterne Agee brands—the aftermath of the companies that have plans to major computing platform.
saleswoman indicted on brib- Sept. 11, 2001, terrorist attacks build facilities overseas and However, its main VR unit,
ery allegations, pleaded not and the height of the 2008
Ad consultant says threatening to install import Oculus, barely registers in the
guilty to the criminal charges. great recession, for example. flirting with issues tariffs—have sparked contro- parent company’s growth, and
The Securities and Ex- This year’s hyperpolarized versy. “It is the rage lately to sales of its first headset,
change Commission filed a environment in U.S. politics is
like immigration risks talk about American jobs, but launched last year, have been
complaint against Messrs. no exception. The temptation touching ‘third rail.’ we have always been doing lower than anticipated.
Kang and Schonhorn, and Ms. for brands to weigh in on that, even before it was fash- Separately, a court in Dallas
Kelley, citing similar allega- these situations can be high. ionable,” said WeatherTech on Wednesday found Oculus
tions. So are the chances that they chief executive David MacNeil. guilty of unfairly using the
Messrs. Hanna and Kang inadvertently spark a backlash. per Bowl broadcaster, which is Anheuser-Busch aired a big- code of a videogame publisher,
knew one another long before “Touching issues such as im- getting as much as $5 million game spot in 2002 that ZeniMax Media Inc., to build
they worked for the nation’s migration, climate change or for 30-seconds of ad time. It showed its iconic Budweiser its headset. The court awarded
third-largest public pension by border control in ads would be featured a border wall and Clydesdales traveling to New ZeniMax $500 million.
assets. They were college like touching the third rail,” said Hispanic actors, the company’s York City to bow their heads The parade of strong
friends, stayed in touch and Allen Adamson, who founded ad agency said. in front of the skyline of lower growth—the fourth quarter
later launched Secrets BrandSimple Consulting. Some brands are being cau- Manhattan after the Sept. 11 was the fifth straight quarter
Vodka, people familiar with The Trump administration tious. GoDaddy Inc., which attacks. At the time, the of revenue increases of at
the matter said. says its travel restrictions sells web addresses and ser- brewer had some reservations least 50%—will slow this year,
Before Mr. Hanna joined the aren’t a religious test, noting vices for small businesses, is about airing the ad, said Bob Facebook has cautioned.
New York state pension in many Muslim countries aren’t making a TV commercial for Lachky, a former creative chief Executives on Wednesday reit-
January 2015, he accompanied affected. Critics view it as tar- the big game that includes for Anheuser-Busch. “We erated warnings from Novem-
Mr. Kang on at least one week- geting Islam, and the order has iconic internet memes and didn’t want it to look like we ber that it will stop jamming
end trip to Montreal that was been met with legal challenges, considered, but decided were pandering.” The ad was more ads into the news feed,
paid for by Mr. Schonhorn, ac- protests and blowback from against, including a nod to largely celebrated. and expects advertising reve-
cording to people familiar some in corporate America. tweets from Mr. Trump’s —Joshua Jamerson nue growth to drop “meaning-
with the matter. Some brand experts said Twitter account. contributed to this article. fully” later this year.
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
THE WALL STREET JOURNAL. * * * * Thursday, February 2, 2017 | B3

BUSINESS NEWS

Under
Armour’s
RatingCut
BY CHRIS DIETERICH
S&P Global Ratings lowered
Under Armour Inc.’s credit
rating to junk status a day af-
ter the company posted disap-
pointing sales during the piv-
otal holiday shopping season.
Analysts at the rating firm
on Wednesday took down
their rating one notch to BB+
from BBB-, one tick below the
threshold that divides invest-
ment grade from noninvest-
ment grade, or junk.
The move came a day
after the company
posted disappointing
holiday sales.
Shares of the athletic-gear
maker plunged more than 23%
on Tuesday after the company
reported that sales increased
just 12% in the holiday quarter
and forecast that revenue
would increase between 11% to
12% in 2017, about half as
much as anticipated. The
stock fell 2.2% on Wednesday.
S&P analysts Mariola Bo-
rysiak and Peter Deluca wrote
that, amid competitive pres-
sures and a softening retail
environment, they expect the
company’s sales to grow at
about 10% annually, with pric-
ing pressure and rising costs
squeezing profit margins in
the year ahead.
Under Armour issued $600
million in 10-year unsecured
bonds in June 2016. These
notes last traded at 88.102,
down from 92.299 on Tues-
day, according to Market-
Axess.
Moody’s Investors Service
on Wednesday affirmed Under
Armour’s credit rating at Baa
2, or two notches above junk
status, but lowered its outlook
on company’s credit to nega-
tive.
Volkswagen Adds to Scandal Cost
Auto maker tags
$1.2 billion to settle
with more owners
of tainted vehicles
BY WILLIAM WILKES
FRANKFURT—Volks-
wagen AG’s bill for its emis-
sions-cheating scandal could
total around $23 billion fol-
lowing an agreement reached
late Tuesday to compensate
vehicle owners in the U.S.
According to court docu-
ments filed in the U.S., Volks-
wagen will pay $1.2 billion in
settlements tied to about
80,000 of its larger, 3-liter
diesel-powered vehicles impli-
cated in the scandal, as well
as buying some back from
customers and fixing others.
Last year, the company settled
with owners of another type
of diesel vehicle, and last
month pleaded guilty to fraud
charges in the U.S.
Separately, German parts
supplier Robert Bosch GmbH
on Wednesday said it agreed
to pay $327.5 million to settle
a U.S. civil claim that it helped
create so-called “defeat de-
vice” software for Volkswagen
that allowed cars to dodge
U.K.’s Reckitt in Talks for Baby-Food Maker Mead Johnson
BY DANA MATTIOLI
AND DANA CIMILLUCA
Reckitt Benckiser Group
PLC confirmed it is in talks to
buy baby-food maker Mead
Johnson Nutrition Co., a move
that would further a push by
the U.K. consumer giant into
the healthy-products arena.
Reckitt announced late
Wednesday that it’s in ad-
vanced negotiations to buy
Mead Johnson for $90 a share,
a nearly 30% premium to the
price of the stock before The
Wall Street Journal reported on
the talks earlier in the day.
That equates to a total deal
value of about $16.7 billion,
Reckitt said. The British com-
Car Payments
Volkswagen has agreed to pay at least $23 billion related to its
diesel-emissions scandal. Here is a breakdown:
Civil lawsuits
Volkswagen in 2016 agreed to pay up to
$17.5 billion to compensate consumers,
regulators, dealers and state attorneys
general in the U.S.
Criminal fine
Volkswagen last month agreed to pay
$4.3 billion in a settlement of the U.S.
criminal investigation into the company's
decadelong manipulation of diesel vehicles.
Tuesday
Volkswagen agreed to pay at least
$1.2 billion in compensation to owners of
about 80,000 3.0-liter diesel vehicles affected
by the company's emissions scandal in the
U.S. The company agreed to pay up to
$4 billion if regulators don't approve the fix.
Total: $23-$25.8 billion
Source: the company THE WALL STREET JOURNAL.
U.S. pollution testing. If ap- world-wide. Last year, lawyers
proved, the agreement would alleged that Volkswagen and
close the civil investigation Bosch cooperated on develop-
into Bosch. ing, maintaining and hiding
Volkswagen has been em- the devices—a charge Bosch
broiled in lawsuits in the U.S. has denied.
in connection with its admis- Court filings in September
sion in late 2015 that it had alleged Bosch Chief Executive
installed defeat devices in Volkmar Denner knew about
some 11 million vehicles Volkswagen’s cheat device,
pany had a market value of £48 Slough, England, comprises
billion ($60 billion) Wednesday. consumer brands such as Lysol
The companies “are pres- cleaning spray, Durex con-
ently engaged in a period of doms, Strepsils lozenges and
due diligence and contract dis- Scholl footcare products. The
cussion,” Reckitt said. There’s company, which hasn't yet re-
no guarantee a deal will be ported 2016 results, had sales
struck, the company cautioned. of £8.9 billion in 2015.
Mead Johnson, based in If the two companies were
Glenview, Ill., makes a range to combine, it could breathe
of nutritional products includ- new life into a push by Reckitt
ing Enfamil infant formula and into higher-margin consumer-
the Sustagen milk supplement health products.
for children. It had net sales Under Chief Executive Rakesh
of $3.7 billion in 2016, down Kapoor, who took the helm in
8%. Half the company’s sales 2011, the company has made a
came from Asia, with 17% string of acquisitions aimed at
coming from Latin America expanding the business. The
and the rest from North consumer-health unit’s growth
America and Europe. has slowed however.
Reckitt Benckiser, based in In October, when it re-
and met with then Volks-
wagen CEO Martin Winter-
korn 18 months before the
scandal erupted.
Bosch said its settlement
didn’t mean it accepted the
plaintiff’s charges or any lia-
bility. “We wish to devote our
attention and resources to the
transition in mobility and in
other areas of activity,” Mr.
Denner said.
Lawyers representing con-
sumers said the Volkswagen
deal was another step toward
providing “fair value” for cus-
tomers and removing illegally
polluting Volkswagen vehicles
from U.S. roads.
The $1.2 billion settlement
amount, which compares with
a roughly $1 billion figure esti-
mated in December, could rise
to $4 billion if regulators don’t
approve the proposed reme-
dies for owners, according to
court documents. A prelimi-
nary hearing on the settle-
ments is scheduled for Feb. 14.
Volkswagen said Wednes-
day the proposed deal would
mean all U.S. customers would
have a resolution for tainted
vehicles available to them.
The deal covers newer
Volkswagen-brand Audi and
Porsche cars and sport-utility
vehicles. Those cars are usu-
ported the results, Reckitt
lowered its outlook for the
year—the second time it had
guided estimates slightly
lower in three months—and
reported overall third-quarter
sales that missed expecta-
tions. Reckitt said then that
like-for-like sales for the
three months ended Sept. 30
rose by 2% compared with
the same period last year,
missing the 2.8% expected by
analysts and marking the
lowest growth during Mr. Ka-
poor’s tenure.
Reckitt’s performance sig-
nals how European consumer-
goods companies have strug-
gled to notch robust sales
growth in tough macroeco-
ally more expensive than the
2-liter vehicles at the core of
the emissions scandal.
Volkswagen last year
agreed to pay $17.5 billion to
settle civil lawsuits, including
$10 billion in June to compen-
sate drivers of 475,000 diesel-
powered vehicles with 2-liter
engines that violated U.S.
emissions laws. Last month,
Volkswagen pleaded guilty to
charges in the U.S. that in-
cluded conspiring to defraud
the government and consum-
ers by manipulating diesel en-
gines, and agreed to pay a
criminal fine of $4.3 billion.
German prosecutors last
week named Mr. Winterkorn
as a suspect in a fraud investi-
gation as part of a probe into
the emissions scandal. The
prosecutors suspect Mr. Win-
terkorn knew about the issue
earlier than he acknowledged.
An attorney for Mr. Winter-
korn said last week the former
CEO would respond after he
has examined the evidence.
Mr. Winterkorn told a German
parliamentary committee last
month that he didn’t learn
about the emissions-cheating
software until September 2015,
shortly before Volkswagen ad-
mitted cheating to U.S. envi-
ronmental authorities.
nomic conditions marked by
currency swings and the rise of
local competitors. Mead John-
son’s results also have been
hampered by currency swings.
Mead Johnson was once
part of pharmaceutical giant
Bristol-Myers Squibb Co. In
2009, Bristol split off the nu-
trition company to focus on
its core medical business.
Mead Johnson has been the
subject of takeover specula-
tion ever since.
The company was founded
more than 100 years ago in
Jersey City, N.J., by Edward
Mead Johnson Sr., who started
it after leaving Johnson &
Johnson, which he co-founded
with his brother.

THE SHORT ANSWER | David Crook and Jieqian Zhang

Do You Know Nafta?

Now that the Trans-Pacific Partnership has been written off, the White House is
focusing on the nearly quarter-century-old North American Free Trade Agreement.
The first salvo was fired with the White House's ‘tariffs for the wall' proposal. If
Canada and Mexico won’t renegotiate, the U.S. may opt to withdraw from the
agreement. What’s at stake? Some numbers…

U.S. Imports vs. Exports All commodities (billions of dollars)

2015 import 2015 export 2016* import 2016* export
China
Canada
Mexico
Japan
Germany
0

United Kingdom
400 300 200 100 0 100 200 400 300 200 100 0 100 200

Selling and Buying (2015 total value, billions of dollars)

U.S. top 3 imports from Nafta countries U.S. top 3 exports to Nafta countries
1 Vehicles and parts 123.3 1 Vehicles and parts 64.6

2 Fuels and oils 43.2 2 Nuclear reactors, parts 57.9

3 Electrical machinery and equipment 39.4 3 Fuels and oils 39

Top 5 States Trading... (2015 total value, billions of dollars)

...with Mexico ...with Canada
Texas 178 Michigan 69.1
California 71.9 Illinois 47.2
Michigan 53.3 California 44.8
Illinois 21.3 Texas 41.3
Arizona 16.8 Ohio 33.9

No.1 Export Partner by State (2015 dollar value)

Mexico Canada Other countries

Wash.
N.H.
Mont. N.D. Minn. Vt.
Maine
Ore.
Idaho S.D. Wis. N.Y. Mass.
Wyo. Mich.
Iowa Pa.
Nev. Neb. Ohio R.I.
Utah Ill. Ind. Conn.
Colo. W.Va.
Calif. Kan. Mo. Ky. Va. N.J.
N.C. Del.
Ariz. Tenn.
N.M. Okla. Ark. S.C. Md.
Miss. Ala. Ga. D.C.
Texas
La.
Alaska
Fla.
Hawaii
Hawaii
* Through November
vember
Sources: United States International Trade Commission (U.S. imports vs. exports); U.S. ITC (selling and buying),
Bureau of Transportation Statistics (Top 5 states), Census Bureau (No.1 export partner by state) THE WALL STREET JOURNAL.
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
B4 | Thursday, February 2, 2017 NY * *** THE WALL STREET JOURNAL.

BUSINESS NEWS BUSINESS WATCH

CEOs Head Back to School

ABERCROMBIE & FITCH ing found guilty on unspecified
child-pornography charges. The
Chief Merchant ruling didn’t name the man.
Is Named CEO —Peter Landers

College-campus visits After more than two years ALTRIA GROUP

without a CEO, Abercrombie &
lend a personal touch Fitch Co. has finally found one.
to recruiting efforts; The teen apparel retailer said
Wednesday it was promoting its
coffee, one-to-one chief merchant, Fran Horowitz, to
the job, filling a vacancy created in
BY RACHEL FEINTZEIG December 2014 with the departure
of longtime leader Mike Jeffries.
Fighting to lure fresh grad- “We always had an eye that
uates right out of school, chief if she got the job done, then she
executives are spending more had a very good chance of get-
time on college campuses. ting the CEO job,” said Executive
As M.B.A.s and new grads Chairman Arthur Martinez.
gravitate toward top compa- Ms. Horowitz, 53 years old,
nies in technol- has been the company’s presi-
BUSINESS ogy, firms in dent and chief merchandising of-
ACKERMAN + GRUBER FOR THE WALL STREET JOURNAL
Stake in Brewer
Provides a Boost
Altria Group Inc.’s stake in
beer behemoth Anheuser-Busch
InBev NV proved a boon in the
final quarter of the year as ciga-
rette volumes waned.
Cigarette volume fell 4.8%,
and cigarette market share was
flat from a year ago at 51.4%.
But during the quarter, Altria
received a share of Anheuser-
Busch InBev following the Bel-
gian brewer’s roughly $100 billion

EDUCATION other indus- ficer for the past year. takeover of SABMiller PLC. The
tries are get- —Khadeeja Safdar U.S. tobacco company received
ting personal $5.3 billion in cash and a 9.6%
in their pursuit of young ALPHABET share of AB InBev in exchange
workers. Some, like Cargill for its 27% stake in SABMiller.
Inc. Chief Executive David Google Wins In the December period, Al-
MacLennan, personally call Search Ruling tria’s earnings rose to $10.28 bil-
top prospects in hopes that a lion, or $5.27 a share, from $1.25
direct connection with the Japan’s Supreme Court has billion, or 64 cents a share, a
CEO will seal the deal. ruled in favor of Alphabet Inc’s year prior. Earnings were lifted
“Recruiting is too impor- Google in a case brought by a by the AB InBev/SABMiller
tant to leave up to HR alone,” man found guilty years ago of transaction. Excluding items, per-
said Chris Policinski, whose child-pornography charges who share earnings rose to 68 cents.
Land O’Lakes Inc. aims to wanted articles about his arrest Analysts polled by Thomson
make 80 full-time college and Cargill Chief Executive David MacLennan says that he wants to ‘put a face to the company.’ removed from Google searches. Reuters had forecast earnings of
M.B.A. hires this year. The The court said Google search 67 cents. Net revenue after ex-
CEO describes students’ lack ferent view. The Wayzata, ronmental management from more top leaders are visiting results are a form of speech, and cise taxes grew 0.1% to $4.7 bil-
of interest in food and agricul- Minn.-based Cargill is the larg- Duke University. She had read Ross, including Ford Motor restricting the results could be lion, just short of analyst esti-
ture companies as a “market- est private company in the U.S., about Cargill’s sustainability Co.’s Mark Fields and Home De- seen as a restriction on speech. mates for $4.8 billion.
ing problem,” and said it is up according to a Forbes ranking, programs, but a one-on-one pot Inc.’s Craig Menear. The man suing Google paid a —Anne Steele
to him to help sell them on yet the CEO acknowledges it coffee meeting with Mr. Mac- Companies such as An- fine in December 2011 after be- and Jennifer Maloney
working for his company. isn’t exactly a household name, Lennan persuaded her that the heuser-Busch InBev NV have
Mr. Policinski visits college particularly when tech compa- company shared her values. created buzz with smaller
campuses about once or twice
a month, spending time hash-
nies are dominant in recruiting.
He believes it is his job to
“It was kind of living proof of
what they were selling,” she said.
events that require students to
apply to get face time with a Tesla Shortens Its Name
ing out case studies with “put a face to the company,” CEO, according to Mr. Zikakis.
strategy classes and giving and has interviewed candidates A Cargill spokesman esti-
fireside chats with small from M.B.A. programs and mates that the majority of the
groups. He frequently talks on lunched with people consider-
Employers attract M.B.A. candidates that Mr. Mac-
the phone with students jug- ing job offers. bigger crowds when Lennan reached out to in the
gling multiple job offers. Business students want to past year accepted the com-
the chief executive

JASPER JUINEN/BLOOMBERG NEWS

“When I started, it was a very know more about a potential pany’s offers. Land O’Lakes’s Mr.
hierarchical world. I saw the CEO employer’s values and ethics, so comes to campus. Policinski, too, rarely strikes out
once a year when he gave the Mr. MacLennan talks about with his recruiting efforts, a
state-of-the-union speech for meeting with farmers in Africa company spokeswoman said.
the company,” he said. Now, and pointedly doesn’t refer to Cvent Inc. chief Rajeev
young talent expects personal Cargill as an agribusiness com- Damian Zikakis, the director “Reggie” Aggarwal recently
interactions with leaders. pany. A decade ago, job seekers of career services at the Univer- learned that attendance at
A top Cargill executive once just wanted to know when they sity of Michigan’s Ross School Cvent’s campus events was
told Mr. MacLennan that the would start and how much they of Business, said students “are dropping “dramatically” with-
company shouldn’t have to would be paid, he said. sort of wowed by the bright out him there, so he plans to
market itself to prospective Liz Spence, a 30-year-old lights” of brand-name employ- get back to campus soon. His Elon Musk’s Tesla Motors Tesla closed its $2.6 billion
hires. “ ‘People don’t want to associate with Cargill’s corpo- ers, leaving some companies goal: spending about 50 hours has changed its name to Tesla acquisition of SolarCity in No-
come work here, that’s their rate strategy and development struggling to attract attention. this year on recruiting young Inc., as the auto maker reposi- vember, combining Mr. Musk’s
problem,’ ” Mr. MacLennan re- team, had five job offers be- Employers draw bigger talent. “We’re in a talent war,” tions itself as an integrated electric-car and solar-energy
calls him saying. fore obtaining dual masters crowds when the CEO comes to he said. “The CEO should be clean-energy company after its companies.
Mr. MacLennan takes a dif- degrees in business and envi- campus, he said, adding that the best salesperson.” tie-up with SolarCity Corp. —Anne Steele

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THE WALL STREET JOURNAL.
TECHNOLOGY
China Rivals Pose
Stiff Test for Apple
BY EVA DOU
JINAN, China—The walls of
the train station in this east-
ern metropolis are papered
with reminders of Apple Inc.’s
challenge in China.
The terminal is blanketed
with sizable green Oppo Elec-
tronics Corp. ads showing a
young starlet clutching a sleek
Chinese phone. Ads like these
have swept across much of the
country in the past year—they
are visible in bus terminals, sub-
ways and shopping malls as
well—helping make the home-
grown Oppo brand a huge hit.
On Tuesday, Apple said its
12%
Drop for Apple’s Greater China
sales in the latest period
fiscal first-quarter sales rose
in every region except for
China, Hong Kong and Taiwan.
On a call with investors, Chief
Executive Tim Cook said there
were challenges. It was the
fourth consecutive quarter in
which Greater China was Ap-
ple’s worst-performing region.
Apple said its Greater China
sales fell 12% to $16.2 billion
for the quarter ended Dec. 31,
compared with 14% growth a
year earlier.
Its performance in the region
held Apple’s global revenue
growth to 3%, despite 9%
growth in the Americas. Mr.
Cook said that without a cur-
rency impact, the drop in main-
land China would have been 6%.
China’s smartphone boom
DAR MESHI
TECH
Continued from page B1
are skills for managing social
media as part of your life.
Limit Triggers
Our brains are wired to
“voraciously feed on infor-
mation,” says University of
California, San Francisco
neuroscientist Adam Gazza-
ley, co-author of the 2016
book “The Distracted Mind.”
So why let social-media
companies decide when to
tempt you? Turn off app no-
tifications on your phone
and computer, especially for
live video broadcasts, whose
alerts are designed to engen-
der fear of missing out.
Make your main work de-
vices completely off limits to
social media. Don’t log into
Facebook or even install the
app. For extra help, try the
News Feed Eradicator for
Facebook browser plug in.
Avoid Quicksand
When you’re on Twitter or
Facebook, it is easy to read
one article, then another,
then another.
Nir Eyal, author of the
2014 book “Hooked”: How to
Build Habit-Forming Prod-
ucts” and a consultant to
app makers, says he forbids
himself to read anything
right away. Instead, he saves
articles to a service called
Pocket, which reads them
aloud while he’s at the gym.
We do ourselves a disser-
vice when we use social me-
dia as a break from serious
work, says Dr. Gazzaley. Our
brains need a chance to be
empty. Research suggests
the best way to help your
brain focus is exercise, even
for a short period. Staring
into space would be better
than refreshing Facebook.
Set Boundaries
If social media causes you
to ignore loved ones at the
dinner table or in the bed-
room, establish times when
social media is off limits.
Setting rules also is impor-
tant for parents, says Wendy
helped drive Apple’s growth
for several years, but now Chi-
nese companies such as Oppo
and Huawei Technologies Co.
are offering handsets that are
cheaper and nearly as sophis-
ticated as iPhones.
China’s smartphone market,
the world’s largest, is brutally
competitive and fickle: At the
time veteran technology exec-
utive Hugo Barra left Xiaomi
Corp. last month to return to
Silicon Valley, the company he
touted a couple of years ago as
China’s next big thing had
fallen from first to fourth in
the sales rankings.
Apple’s sales in the region
were also hampered by the lim-
ited visual difference between
the iPhone 6S and iPhone 7, said
James Yan, an analyst for Coun-
terpoint Technology Market Re-
search. With lower average dis-
posable income than Western
shoppers, Chinese consumers
are less eager to splurge on an
expensive new phone that could
be mistaken for an older one.
“Chinese consumers now
have many other options,” Mr.
Yan said.
At least four homegrown
companies are selling more
handsets than Apple in China:
Oppo, Vivo, Huawei and Xiaomi.
Oppo and sister brand Vivo
have climbed to the top of
China’s smartphone market by
taking a page from Samsung
Electronics Co.’s playbook, blan-
keting target markets with ads
featuring popular celebrities.
Oppo’s market share in the third
quarter was 17.5% and Vivo’s
was 16.7%, according to market-
research firm IDC.
—Tripp Mickle in San
Francisco and Wayne Ma
in Beijing contributed
to this article.
The left-side nucleus
accumbens (shown in red/
yellow) is the part of the brain
that researchers found
responds more strongly to
positive social feedback among
heavy Facebook users.
Wood, a professor of psychol-
ogy and business at the Uni-
versity of Southern California.
“You want your kids to learn
the same skills that you want
to learn yourself, which is to
use [social media] in a way
that is healthy and beneficial,”
she says.
Some of the newest Wi-Fi
routers have parental con-
trols to help you limit inter-
net access on certain de-
vices. Website and app
blockers for phones, such as
Freedom, SelfControl or Un-
plugged, also might help.
Make New Norms
Not that long ago, it would
be a fireable offense to visi-
bly ignore a meeting or class;
now, many openly scroll
away on phones or laptops.
Bosses could set a better
work culture by providing
charging stations at meetings
where everyone could leave
their phones, then focus on
the discussion at hand.
Comedy clubs and some
other public venues have
check-in stations or sealed
bags for phones.
Mr. Eyal suggests you try
shaming friends who have
bad habits—if you do it po-
litely. If someone is ignoring
you at dinner, ask, “Is every-
thing OK?” The answer
might start an important
conversation.
Tech Should Help
The social-media industry
has a responsibility here,
too. Since companies usually
know exactly how much time
users spend on their apps,
Mr. Eyal makes the modest
proposal that they offer help
to people who demonstrate
problem behavior.
And for the rest of us,
let’s encourage app makers
that support a philosophy
called Time Well Spent, cre-
ated in part by former
Google designer Tristan Har-
ris. It says app makers
should make interfaces more
helpful, not more demanding
of our time.
Thursday, February 2, 2017 | B5
This announcement is neither an offer to purchase nor a solicitation of an offer to sell Shares (as defined below). The Offer (as defined below) is made solely by the Offer to Purchase, dated February 2, 2017, and the related
Letter of Transmittal (as defined below), and any amendments or supplements thereto. Purchaser (as defined below) is not aware of any state where the making of the Offer is prohibited by administrative or judicial
action pursuant to any valid state statute. If Purchaser becomes aware of any valid state statute prohibiting the making of the Offer, Purchaser will make a good faith effort to comply with such statute. If, after
such good faith effort, Purchaser cannot comply with such state statute, the Offer will not be made to, nor will tenders be accepted from or on behalf of, the holders of Shares in such state. Except as
set forth above, the Offer is being made to all holders of Shares. In any jurisdiction where the securities, “blue sky” or other laws require the Offer to be made by a licensed broker or dealer, the
Offer will be deemed to be made on behalf of Purchaser by one or more registered brokers or dealers to be designated by Purchaser that are licensed under the laws of such jurisdiction.
Notice of Offer to Purchase for Cash
All Outstanding Shares of Common Stock
of
Arctic Cat Inc.
at
$18.50 Per Share
by
Aces Acquisition Corp.,
Textron Specialized Vehicles Inc.
and
Textron Inc.
Aces Acquisition Corp., a Minnesota corporation (“Purchaser”) and a direct wholly owned subsidiary of Textron Specialized Vehicles Inc., a Delaware corporation,
which is a direct wholly owned subsidiary of Textron Inc., a Delaware corporation (“Textron”), is offering to purchase all outstanding shares of common stock, par value
$0.01 per share (each, a “Share” and collectively, the “Shares”), of Arctic Cat Inc., a Minnesota corporation (“Arctic Cat”), at a price of $18.50 per Share (the “Offer Price”),
payable net to the holder thereof in cash, without interest, subject to any withholding of taxes required by applicable law, upon the terms and subject to the conditions
set forth in the offer to purchase, dated February 2, 2017 (as it may be amended or supplemented from time to time, the “Offer to Purchase”) and in the related letter
of transmittal (as it may be amended or supplemented from time to time, the “Letter of Transmittal” and, together with the Offer to Purchase, the “Offer”). Tendering
shareholders of Arctic Cat who have Shares registered in their names and who tender directly to Wells Fargo Bank, N.A., which is acting as the depositary in connection
with the Offer (the “Depositary”), will not be charged brokerage fees or commissions or, except as provided in the Letter of Transmittal, transfer taxes on the purchase of
Shares pursuant to the Offer. Shareholders who hold their Shares through a broker, dealer, commercial bank, trust company or other nominee should consult with such
institution as to whether it charges any such fees or commissions.
Textron and/or Purchaser will pay all charges and expenses of the Depositary and Alliance Advisors LLC, which is acting as information agent for the Offer (the
“Information Agent”), incurred in connection with the Offer. Purchaser is offering to purchase all the Shares as a first step in acquiring the entire equity interest in Arctic Cat.
Following completion of the Offer, Purchaser intends to effect the Merger (as defined below).
THE OFFER AND WITHDR AWAL RIGHTS WILL EXPIRE AT 5:00 P.M.,
NEW YORK CITY TIME, ON MARCH 3, 2017, UNLESS THE OFFER IS EXTENDED.
There is no financing condition to the Offer. The Offer is conditioned upon, among other things, (1) the satisfaction of the Minimum Condition (as described below) and
(2) the non-occurrence of a Company Material Adverse Effect (as defined in the Merger Agreement (as defined below)).
The term “Minimum Condition” is defined in the Offer to Purchase and generally requires that the number of Shares validly tendered and not properly withdrawn prior
to the expiration of the Offer which, together with the number of Shares (if any) then beneficially owned by Textron or Purchaser, in the aggregate, or with respect to which
Textron or Purchaser otherwise has, directly or indirectly, sole voting power, represents at least one Share more than 50% of the Fully Diluted Shares (as defined below).
Pursuant to the Merger Agreement, the satisfaction of the Minimum Condition will be determined without treating as validly tendered Shares tendered via guaranteed delivery
procedures unless the Depositary has received all required items on account of such Shares in settlement or satisfaction of any such guarantee at or prior to the expiration of the
Offer. The Offer is also subject to other conditions set forth in the Offer to Purchase. See Section 15—“Conditions of the Offer” of the Offer to Purchase.
“Fully Diluted Shares” means all outstanding securities entitled to vote in the election of directors of Arctic Cat or on the adoption of the Merger Agreement and approval of
the Merger, together with all such securities which Arctic Cat would be required or permitted to issue assuming the conversion or exchange of any then-outstanding warrants,
options, securities or instruments convertible or exchangeable into, or rights exercisable for, such securities, whether or not then convertible, exchangeable or exercisable.
The purpose of the Offer is to acquire control of, and the entire equity interest in, Arctic Cat. No dissenters’ rights are available to holders of Shares in connection with the Offer.
The Offer is being made pursuant to an Agreement and Plan of Merger, dated as of January 24, 2017 (as it may be amended, restated or supplemented from time to time, the
“Merger Agreement”), among Textron, Purchaser and Arctic Cat. The Merger Agreement provides, among other things, that, following the completion of the Offer, upon the
terms and subject to the conditions set forth in the Merger Agreement, and in accordance with the Minnesota Business Corporation Act (the “MBCA”), Purchaser will merge
with and into Arctic Cat (the “Merger”), with Arctic Cat continuing as the surviving corporation and an indirect wholly owned subsidiary of Textron.
Pursuant to the Merger Agreement, at the effective time of the Merger, each outstanding Share (other than Shares owned by (a) Textron or Purchaser or any other
subsidiary of Textron or (b) any shareholder of Arctic Cat who is entitled to and properly demands and exercises dissenters’ rights with respect to such Shares pursuant to,
and complies in all respects with, the applicable provisions of Minnesota law) will be converted into the right to receive $18.50, payable net to the holder thereof in cash,
without interest, subject to any withholding of taxes required by applicable law. Textron has agreed under the Merger Agreement to provide or cause to be provided to
Purchaser the funds necessary to pay for any Shares that Purchaser becomes obligated to purchase pursuant to the Offer. The Merger Agreement is more fully described in
Section 12—“Merger Agreement; Other Agreements” of the Offer to Purchase.
On January 23, 2017, each of the Arctic Cat Board of Directors (the “Arctic Cat Board”) and, as required by the MBCA, a committee of disinterested
directors of the Arctic Cat Board, among other things, (i) determined that the Merger Agreement and the transactions contemplated thereby are advisable,
fair to and in the best interests of Arctic Cat and its shareholders, (ii) approved and adopted the Merger Agreement and the transactions contemplated thereby,
including the Offer and the Merger and (iii) recommended that Arctic Cat’s shareholders accept the Offer and tender their Shares to Purchaser in the Offer
and, if required to consummate the Merger, such shareholders approve and adopt the Merger Agreement and the Merger. Accordingly, and for other reasons
described in more detail in Arctic Cat’s Tender Offer Solicitation/Recommendation Statement on Schedule 14D-9 that is being filed with the United States
Securities and Exchange Commission (the “SEC”) and, together with the Offer to Purchase, the Letter of Transmittal and other related materials, mailed to the
shareholders of Arctic Cat in connection with the Offer, the Arctic Cat Board unanimously recommends that Arctic Cat’s shareholders accept the Offer and
tender their Shares to Purchaser pursuant to the Offer.
Pursuant to the Merger Agreement, Arctic Cat granted to Purchaser an irrevocable option (the “Top Up Option”), exercisable only after the acceptance for payment of
Shares in the Offer, to purchase, at a price per share equal to the Offer Price, additional Shares (the “Top Up Option Shares”) equal to the lowest number of Shares that, when
added to the number of Shares owned, directly or indirectly, by Textron and Purchaser, will constitute one Share more than 90% of the Fully Diluted Shares (after giving effect
to the issuance of the Top Up Option Shares). The Top Up Option is not exercisable unless immediately after such exercise and the issuance of the Top Up Option Shares,
Textron and Purchaser would, directly or indirectly, hold, in the aggregate, at least 90% of the outstanding Shares. The Top Up Option is not exercisable for a number of Shares
in excess of Arctic Cat’s total authorized and unissued Shares. The aggregate par value of the Shares issued pursuant to the Top Up Option is to be paid in cash and the balance
of the aggregate price is to be paid by a promissory note of Purchaser or cash, or a combination of cash and a promissory note. Any such promissory note (i) will bear interest at
the rate per annum equal to the short-term applicable federal rate on the date of execution and delivery of such promissory note, payable in arrears at maturity, (ii) will mature
on the first anniversary of the date of execution and delivery of such promissory note, (iii) may be prepaid without premium or penalty and (iv) will have no other material
terms. The purpose of the Top Up Option is to permit Purchaser to consummate the Merger as a “short-form” merger pursuant to Section 302A.621 of the MBCA and without
convening a meeting of the shareholders of Arctic Cat. Following the Offer, if Textron and Purchaser, directly or indirectly, would not own, in the aggregate, at least 90% of the
outstanding Shares, a vote of the shareholders of Arctic Cat is required to consummate the Merger. In such case, the approval of the Merger at a meeting of the shareholders of
Arctic Cat would be assured because of Purchaser’s ownership of at least one Share more than 50% of the Fully Diluted Shares following completion of the Offer.
Upon the terms and subject to the conditions of the Merger Agreement, in the event that Textron and Purchaser acquire, in the aggregate, at least 90% of the
then-outstanding Shares, the parties have agreed to take all necessary and appropriate action to cause the Merger to become effective as promptly as practicable without a
meeting of the shareholders of Arctic Cat in accordance with Section 302A.621 of the MBCA.
For purposes of the Offer, Purchaser will be deemed to have accepted for payment, and thereby purchased, Shares validly tendered and not properly withdrawn as, if
and when Purchaser gives oral or written notice to the Depositary of Purchaser’s acceptance for payment of such Shares pursuant to the Offer. Upon the terms and subject to
the conditions of the Offer, payment for Shares accepted for payment pursuant to the Offer will be made by deposit of the Offer Price with the Depositary, which will act as
agent for tendering shareholders of Arctic Cat for the purpose of receiving payments from Purchaser and transmitting such payments, less any applicable withholding tax, to
shareholders of Arctic Cat whose Shares have been accepted for payment. Under no circumstances will Purchaser pay interest on the Offer Price, regardless of any extension
of the Offer or any delay in making such payment.
In all cases, Purchaser will pay for Shares tendered and accepted for payment pursuant to the Offer only after timely receipt by the Depositary of (i) certificates representing
such Shares, or timely confirmation of a book-entry transfer of such Shares into the Depositary’s account at The Depository Trust Company pursuant to the procedures set
forth in Section 3—“Procedures for Accepting the Offer and Tendering Shares” of the Offer to Purchase, (ii) a Letter of Transmittal (or a facsimile thereof), properly completed
and duly executed, with any required signature guarantees or an Agent’s Message (as defined in Section 2—“Acceptance for Payment and Payment for Shares” of the Offer to
Purchase) in connection with book-entry transfer, and (iii) any other documents required by the Letter of Transmittal.
The Merger Agreement provides that Purchaser may, in its sole discretion, extend the Offer for one or more periods of up to twenty (20) business days each if, at the then
scheduled expiration date of the Offer, any of the conditions to the Offer set forth in the Merger Agreement and described in Section 15—“Conditions of the Offer” of the Offer
to Purchase have not been satisfied or, to the extent permitted by applicable law, waived by Textron or Purchaser. The Merger Agreement also provides that Purchaser will
extend the expiration date of the Offer for any period or periods required by applicable law or any applicable rule, regulation, interpretation or position of the SEC or its staff.
In no event will Purchaser be required to extend the Offer for any reason beyond the earlier to occur of (a) the date the Merger Agreement is terminated or (b) May 24, 2017. See
Section 1—“Terms of the Offer” of the Offer to Purchase for additional information about Purchaser’s obligations to extend the Offer.
If, at the expiration of the Offer, all of the conditions to the Offer have been satisfied or, to the extent permitted by applicable law, waived, Purchaser will accept for payment
and promptly pay for Shares tendered and not properly withdrawn in the Offer. Following Purchaser’s acceptance and payment for Shares tendered in the Offer, Purchaser will,
if required, in order to enable Textron and Purchaser to acquire, in the aggregate, at least 90% of the Shares then outstanding, provide for one “subsequent offering period” (as
provided in Rule 14d-11 under the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) of not less than three (3) nor more than twenty (20) business days (the
“Subsequent Offering Period”) as determined in the sole discretion of Textron and Purchaser. During the Subsequent Offering Period, shareholders of Arctic Cat may tender,
but not withdraw, their Shares and receive the Offer Price, and all Shares that are validly tendered pursuant to the Offer will be immediately accepted for payment by Purchaser
and Purchaser will immediately pay for such Shares at the Offer Price.
Shares tendered pursuant to the Offer may be withdrawn at any time prior to March 3, 2017, the initial expiration of the Offer (including any extensions thereof but
excluding the pendency of the Subsequent Offering Period). If not accepted for payment as provided in the Offer to Purchase on or prior to April 27, 2017, Shares may also
be withdrawn at any time after April 27, 2017.
For a withdrawal of Shares to be effective, a written transmission notice of withdrawal must be timely received by the Depositary at one of its addresses set forth on the
back cover of the Offer to Purchase. Any such notice of withdrawal must specify the name of the person who tendered the Shares to be withdrawn, the number of Shares to
be withdrawn and the name of the registered holder, if different from that of the person who tendered such Shares. If certificates for the Shares to be withdrawn have been
delivered or otherwise identified to the Depositary, then, prior to the physical release of the certificates, the serial numbers shown on such certificates must be submitted to
the Depositary and the signatures on the notice of withdrawal must be guaranteed by an Eligible Institution (as defined in the Offer to Purchase) unless such Shares have
been tendered for the account of an Eligible Institution. If Shares have been tendered pursuant to the procedure for book-entry transfer as set forth in Section 3—“Procedures
for Accepting the Offer and Tendering Shares” of the Offer to Purchase, any notice of withdrawal must specify the name and number of the account at The Depository
Trust Company to be credited with the withdrawn Shares. All questions as to form and validity (including time of receipt) of any notice of withdrawal will be determined
by Purchaser, in its sole discretion. None of Textron, Purchaser or any of their respective affiliates or assigns, the Depositary, the Information Agent or any other person or
entity will be under any duty to give any notification of any defects or irregularities in any notice of withdrawal or incur any liability for failure to give any such notification.
Withdrawals of Shares may not be rescinded. Any Shares properly withdrawn will be considered not to have been validly tendered for purposes of the Offer. However,
withdrawn Shares may be re-tendered at any time prior to the expiration of the Offer or during the Subsequent Offering Period by following one of the procedures described in
Section 3—“Procedures for Accepting the Offer and Tendering Shares” of the Offer to Purchase.
The information required to be disclosed by Rule 14d-6(d)(1) under the Exchange Act is contained in the Offer to Purchase and is incorporated herein by reference.
Arctic Cat has provided Textron and Purchaser with the shareholder list of Arctic Cat and security position listing for the purpose of disseminating the Offer to holders
of Shares. The Offer to Purchase and the related Letter of Transmittal and other relevant materials will be mailed by Purchaser to record holders of Shares and furnished to
brokers, dealers, commercial banks, trust companies and other nominees whose names appear on the shareholder list or, if applicable, who are listed as participants in a clearing
agency’s security position listing, for forwarding to beneficial owners of Shares.
The receipt of cash for Shares in the Offer or the Merger will be a taxable transaction for United States federal income tax purposes and may also be a taxable transaction
under applicable state, local or foreign tax laws. Shareholders should consult with their tax advisors as to the particular tax consequences of the Offer and the Merger to them,
including the applicability and effect of the alternative minimum tax and any state, local or foreign income and other tax laws and of changes in such tax laws. For a more
complete description of material United States federal income tax consequences of the Offer and the Merger, see Section 5—“Material United States Federal Income Tax
Consequences” of the Offer to Purchase.
The Offer to Purchase and the related Letter of Transmittal contain important information which should be read carefully before any decision is made with
respect to the Offer.
Any questions and requests for assistance may be directed to the Information Agent at its address and telephone number as set forth below. Requests for copies of the Offer
to Purchase and the related Letter of Transmittal and all other tender offer materials may be directed to the Information Agent, and copies will be furnished promptly at Textron’s
expense. Shareholders may also contact their banks, brokers, commercial banks or trust companies for assistance concerning the Offer. Textron and Purchaser will not pay any fees
or commissions to any broker, dealer, commercial bank, trust company or other nominee (other than the Information Agent) for soliciting tenders of Shares pursuant to the Offer.
The Information Agent for the Offer is:
200 Broadacres Drive, 3rd Floor
Bloomfield, NJ 07003
Call Collect: (973) 873-7780 or
Call Toll-Free: (888) 991-1293
Email: reorg@allianceadvisorsllc.com
February 2, 2017
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
B6 | Thursday, February 2, 2017 * *** THE WALL STREET JOURNAL.

BANKING & FINANCE FINANCE

WATCH

Credit-Card Fraud Keeps Rising BBVA

Spanish Bank’s Net
Hit by Peso Woes
Industry adds chips tions online without needing
Card Fraud to present the actual card, af- Spain’s Banco Bilbao Vizcaya
and other protections, U.S. adult victims of identity fected 3.4% of consumers, up Argentaria SA, owner of Mex-
but number of victims fraud, in millions from 2.4% in 2015, according ico’s largest bank, posted a fall in
to the study. fourth-quarter profit, hit by pres-
increases by 18% 15 million Card networks, including sure on the peso triggered by
Visa Inc., say chip cards have Donald Trump’s election.
BY ANNAMARIA ANDRIOTIS helped bring down the coun- Spain’s second-largest bank by
AND PETER RUDEGEAIR terfeit fraud rate, in which market value said net profit was
ABEL URIBE/ZUMA WIRE

10
card data are stolen from €678 million ($732.1 million),
More consumers became merchants and used to create down 28% from €940 million a
victims of identity fraud last fake cards. Visa also said last year earlier. Profit was also pulled
year than at any point in month that its fraud rate at down by provisions for court-or-
5
more than a decade despite online merchants was down dered reimbursements to mort-
new security protections im- 1% in September from a year gage borrowers in Spain.
plemented by the credit-card earlier. BBVA owns Mexico’s largest
industry, a report released That activity led to “existing- one-fifth to 1.4 million. 0 In response to the persis- bank, BBVA Bancomer SA, and
Wednesday said. card” fraud, which involves The increases happened tence of online card fraud, generates around half of its net
Some 15.4 million U.S. con- criminals counterfeiting debit despite the rollout of tougher 2011 ’12 ’13 ’14 ’15 ’16 credit-card networks, banks profit in the country. The peso
sumers were victims of iden- and credit cards already held security measures around Note: Includes fraud in credit and debit cards, and technology firms are in- has fallen against the U.S. dollar
bank accounts, email payments and mobile
tity fraud in 2016, resulting in by customers, reaching a new debit and credit cards over phone accounts. vesting in more secure meth- since the election of Mr. Trump.
$16 billion in total losses, ac- peak. the past couple of years. Source: Javelin Strategy & Research ods of sharing payment de- —Jeannette Neumann
cording to the report by con- Big increases also occurred Most major card issuers in THE WALL STREET JOURNAL. tails online, such as
sulting firm Javelin Strategy in rarer frauds that have been the U.S. have replaced con- “tokenization,” in which a J.P. MORGAN CHASE
& Research and identity- steadily rising in recent years sumers’ magnetic stripe cards alytics and science officer at unique code is generated for
theft-protection firm Life- and that are harder for con- with chip cards, and mer- LifeLock. “Stop it one place, each transaction to be ap- Card Chief Changes
Lock Inc. The number of vic- sumers and lenders to detect. chants have increasingly and it migrates to somewhere proved instead of cardhold- As Watters Exits
tims rose 18% from 2015 and The incidence of new-account shifted to more secure pay- else.” ers’ account numbers.
was the highest since Javelin, fraud, for example, in which ment terminals, which com- With online shopping, Mastercard Inc. Chief Fi- J.P. Morgan Chase & Co.
a unit of Greenwich Associ- new accounts are opened in bined are supposed to make it there is no way to use the nancial Officer Martina Hund- named Jennifer Piepszak as head
ates LLC, started tracking the consumers’ names without harder for consumers’ card chips on cards. Most of those Mejean said on an earnings of its credit-card division, taking
phenomenon in 2003. their knowledge or knowledge information to be stolen. merchants still rely on the ba- call Tuesday that the com- over for Kevin Watters, who will
The increase in identity by the lender, rose 40% to 1.8 But the findings of the re- sic card numbers, expiration pany is increasing spending retire later this year, according to
fraud, the bulk of which million, while the number of port suggest that fraudsters dates and security codes on in 2017 largely to boost cus- an internal memo reviewed by
comes from card activity, was cases of consumers having a are finding ways around the the cards. That is largely why tomer and merchant usage of The Wall Street Journal.
driven in part by a 15% rise in bank account, credit card or new measures. “Fraud is kind “card-not-present” fraud, in its digital wallet that uses to- Ms. Piepszak, 47 years old, a
cases of fraudulent online other account taken over im- of like squeezing Jell-O,” said which criminals use card in- kenization, known as Master- Chase veteran who runs the
purchases, the study noted. properly increased by over Stephen Coggeshall, chief an- formation to make transac- pass. bank’s small-business banking
unit, will continue running that
division as well until a successor

SoFi Extends Reach in Buying Online Bank

BY PETER RUDEGEAIR valued at nearly $100 million.
Since its 2011 founding,
Social Finance Inc. is ac- SoFi has branched out beyond
quiring a digital-banking its original business of refi-
startup as the online lender nancing student loans and into
seeks to accelerate its expan- personal loans, mortgages,
sion into more pockets of con- wealth management and life
sumer finance. insurance.
The San Francisco company The company is betting that
said Wednesday that it had deepening relationships with
reached a deal to buy Zenbanx borrowers will be better for
Holding Ltd, a four-year-old its top line.
firm that offers online and An October corporate pre-
mobile bank accounts in multi- sentation reviewed by The
ple currencies and performs Wall Street Journal said that
international money transfers. the strategy was expected to
Terms of the acquisition generate an additional $3.7
weren’t disclosed, but a per- billion in revenue from its ex-
son familiar with the matter isting customer base alone.
said it was an all-stock deal Chief Executive Michael
CEO Michael
Cagney wants
SoFi clients to
open bank
accounts by
the end of
March.
Cagney said in an interview
that with the Zenbanx pur-
chase he expects customers
will be able to open SoFi bank
accounts by the end of the
first quarter of 2017.
He added that over time he
wants to roll out SoFi-branded
credit cards that let borrowers
use rewards points to pay
down student loan balances.
Zenbanx issues debit cards
and provides deposit insur-
ance through a partnership
with WSFS Financial Corp., a
Wilmington, Del.-based com-
munity bank.
The Wall Street Journal re-
ported in July that SoFi was
considering applying for its
own banking charter in Utah.
Mr. Cagney said Wednesday’s
deal didn’t preclude the com-
pany from pursuing that op-
tion.
Zenbanx built a “complete
banking platform abstracted
from a bank,” said Mr. Cagney.
“To the extent we’re success-
ful getting our own [bank] li-
cense, we can migrate custom-
ers out without any
disruption.”
Mr. Cagney said the ability
to send remittances through
Zenbanx will also give SoFi a
foothold in foreign countries.
SoFi had been looking to
launch in Australia in the
fourth quarter of 2016 and in
the U.K. or Europe in 2017, ac-
cording to the October corpo-
rate presentation.
Arkadi Kuhlmann, Zenbanx’s
CEO, will join the company and
oversee the its banking prod-
ucts. Mr. Kuhlmann said he is
“absolutely delighted that we
are merging our visions and
our talented teams.”
is named, according to the
memo. Mr. Watters, 48, previ-
ously was head of mortgage
banking.
—Emily Glazer
UNICREDIT
Rights Issue Set
For Launch Monday
Italian lender UniCredit SpA
said it plans to launch a €13 bil-
lion ($14 billion) rights issue
Monday and aims to close the
transaction before March 10. The
rights issue, which is backed by a
pool of investment banks which
agreed to buy any unsold shares,
is part of a plan UniCredit un-
veiled in December, mainly aimed
at cleaning up its balance sheet
and bolstering its capital position.
—Giovanni Legorano

U.S. ANNUAL MEETING Taking place just weeks into the new Trump administration, this year’s meeting promises
engaging and interactive discussion on everything from artificial intelligence and cloud
SAN FRANCISCO, CA strategies to the next wave of emerging architectures, and the latest trends in enterprise
FEBRUARY 27–28 software and data management.

PROGRAM HIGHLIGHTS
ARTIFICIAL INTELLIGENCE WITH: THE CLOUD WITH: INSIDE THE CYBER WAR ROOM WITH:
Baidu and Singularity University Microsoft, Google Cloud and Amazon Web Services Former Office of Management and Budget and Central
Intelligence Officials
Perspectives: Perspectives:
ANDREW NG JUDSON ALTHOFF Perspectives:
Chief Scientist, Baidu EVP, Worldwide Commercial Business BRIGADIER GENERAL (RET.) GREGORY J. TOUHILL
Adjunct Professor, Stanford Microsoft U.S. Chief Information Security Officer (2016-2017)
Chairman and Co-founder, Coursera Office of Management and Budget
DIANE GREENE
NEIL JACOBSTEIN Senior Vice President JAMES WOOLSEY
Chair, Artificial Intelligence and Robotics Google Cloud Director (1993-1995)
Singularity University Central Intelligence
ADRIAN COCKROFT
VP, Cloud Architecture Strategy
Amazon Web Services

C I O N E T WO R K M E M B E R S H I P I S BY I N V I TAT I O N . L E A R N M O R E AT C I O N E T WO R K .WS J.CO M

PROUDLY SUPPORTED BY:

© 2017 Dow Jones & Co., Inc. All rights reserved. 6DJ4936
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THE WALL STREET JOURNAL. Thursday, February 2, 2017 | B7

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 MKT and Nasdaq Stock t-New 52-week low. HudsonPacProp HPP 34.52 -0.89 NorthropGrumman NOC 228.82 -0.26 Stryker SYK 123.12 -0.41 VEREIT VER 8.37 -0.16 Alphabet A GOOGL 815.24 -4.95 Gaming&Leisure GLPI 31.31 -0.32 s Paccar PCAR 68.63 1.32
Humana HUM 198.48 -0.02 Novartis NVS 73.42 -0.50 SumitomoMits SMFG 7.72 -0.10 VF VFC 50.61 -0.87 Alphabet C GOOG 795.70 -1.09 Garmin GRMN 48.13 -0.16 PacWestBancorp PACW 55.11 -0.29
Market listed securities. Prices are composite dd-Indicates loss in the most recent
quotations that include primary market trades four quarters. HuntingtonIngalls HII 192.79 -1.17 NovoNordisk NVO 36.69 0.52 SunCommunities SUI 78.01 -0.75 Visa V 82.44 -0.27 Amazon.com AMZN 832.35 8.87 Gentex GNTX 20.65 -0.24 Paychex PAYX 58.52 -1.77
as well as trades reported by Nasdaq OMX FD-First day of trading. HyattHotels H 54.82 0.11 Nucor NUE 56.93 -1.16 SunLifeFinancial SLF 39.13 -0.33 s VailResorts MTN 171.72 0.18 Amdocs DOX 58.72 0.01 GileadSciences GILD 72.82 0.37 PayPal PYPL 39.31 -0.47
BXSM (formerly Boston), Chicago Stock h-Does not meet continued listing ICICI Bank IBN 8.29 0.54 NuSTAREnergy NS 55.03 -0.28 SuncorEnergy SU 31.04 ... Vale VALE 10.48 0.30 Amerco UHAL 374.97 -1.70 Goodyear GT 32.11 -0.28 People'sUtdFin PBCT 18.73 -0.02
Exchange, CBOE, National Stock Exchange, ISE standards ING Groep ING 14.47 0.09 OGE Energy OGE 33.19 -0.35 SunocoLogistics SXL 26.14 0.62 ValeantPharm VRX 13.73 -0.05 AmericanAirlines AAL 44.05 -0.20 Grifols GRFS 17.21 0.21 Priceline PCLN 1575.31 0.18
and BATS. lf-Late filing Invesco IVZ 29.59 0.67 ONEOK OKE 54.00 -1.11 SunTrustBanks STI 57.14 0.32 ValeroEnergy VLO 65.37 -0.39 Amgen AMGN 159.67 2.99 HDSupply HDS 42.23 -0.07 Qiagen QGEN 28.96 -0.02
The list comprises the 1,000 largest q-Temporary exemption from Nasdaq IDEX IEX 89.47 -0.69 s ONEOK Partners OKS 51.70 8.56 SynchronyFin SYF 36.00 0.18 Valspar VAL 110.30 -0.37 AnalogDevices ADI 76.17 1.23 Hasbro HAS 82.13 -0.38 s Qorvo QRVO 64.55 0.34
companies based on market capitalization. requirements. IllinoisToolWks ITW 126.88 -0.32 OccidentalPetrol OXY 67.61 -0.16 Syngenta SYT 85.49 0.45 s Vantiv VNTV 62.25 0.01 s Apple AAPL 128.75 7.40 HenrySchein HSIC 159.86 ... Qualcomm QCOM 53.15 -0.28
Underlined quotations are those stocks with t-NYSE bankruptcy t Infosys INFY 13.59 -0.18 Och-Ziff OZM 3.37 0.12 Sysco SYY 52.05 -0.41 VarianMed VAR 79.11 1.46 AppliedMaterials AMAT 35.03 0.78 s Hologic HOLX 40.85 0.32 RandgoldRscs GOLD 84.87 -0.07
large changes in volume compared with the v-Trading halted on primary market. Ingersoll-Rand IR 78.00 -1.35 s OldRepublic ORI 20.88 0.08 TAL Education TAL 81.15 0.16 s Vedanta VEDL 15.24 0.44 ArchCapital ACGL 89.05 0.70 JBHunt JBHT 98.32 -0.76 RegenPharm REGN 364.17 4.88
issue’s average trading volume. vj-In bankruptcy or receivership or Ingredion INGR 126.63 -1.56 OmegaHealthcare OHI 31.58 -0.49 TE Connectivity TEL 74.62 0.27 VeevaSystems VEEV 42.46 0.13 Atlassian TEAM 28.02 0.39 HuntingtonBcshs HBAN 13.50 -0.03 RossStores ROST 65.88 -0.23
Boldfaced quotations highlight those issues being reorganized under the ICE ICE 58.35 -0.01 Omnicom OMC 85.03 -0.62 Telus TU 33.16 -0.26 Ventas VTR 60.64 -1.03 Autodesk ADSK 81.28 -0.06 IAC/InterActive IAC 68.24 -0.57 Ryanair RYAAY 85.66 2.00
whose price changed by 5% or more if their Bankruptcy Code, or securities InterContinentl IHG 46.58 0.15 Oracle ORCL 39.84 -0.27 Ternium TX 22.87 0.01 Verizon VZ 48.39 -0.62 ADP ADP 95.25 -5.74 s IdexxLab IDXX 122.80 0.47 SBA Comm SBAC 103.86 -1.40
previous closing price was $2 or higher. assumed by such companies. IBM IBM 174.29 -0.23 Orange ORAN 15.39 -0.16 TIM Part TSU 14.12 -0.01 VermilionEnergy VET 41.24 0.05 B/EAerospace BEAV 61.50 0.03 IHSMarkit INFO 39.45 ... SEI Investments SEIC 48.53 0.02
IntlFlavors IFF 116.54 -0.67 Orix IX 76.40 1.06 TJX TJX 74.68 -0.24 Vipshop VIPS 11.49 0.17 BOK Fin BOKF 81.74 -0.50 s IPG Photonics IPGP 114.19 -0.80 SS&C Tech SSNC 32.21 0.08
IntlGameTech IGT 26.51 0.10 Oshkosh OSK 69.48 -0.15 TaiwanSemi TSM 31.08 0.17 VMware VMW 87.19 -0.35 Baidu BIDU 173.82 -1.25 IcahnEnterprises IEP 59.34 0.01 SVB Fin SIVB 172.81 0.58
Wall Street Journal stock tables reflect composite regular trading as of 4 p.m. and IntlPaper IP 56.50 -0.10 OwensCorning OC 55.16 -0.09 TargaResources TRGP 59.05 1.43 VornadoRealty VNO 103.90 -2.41 s BankofOzarks OZRK 54.81 -0.06 Illumina ILMN 161.58 1.48 Sabre SABR 24.53 0.03
changes in the closing prices from 4 p.m. the previous day. Interpublic IPG 23.30 -0.23 PG&E PCG 60.89 -1.00 Target TGT 63.67 -0.81 VoyaFinancial VOYA 40.86 0.64 BedBath BBBY 39.79 -0.56 Incyte INCY 124.27 3.06 ScrippsNetworks SNI 75.84 -0.32
IronMountain IRM 35.98 0.18 PLDT PHI 29.67 -0.38 TataMotors TTM 39.58 0.62 VulcanMaterials VMC 128.32 -0.01 Biogen BIIB 281.69 4.45 Intel INTC 36.52 -0.30 Seagate STX 44.78 -0.37
Wednesday, February 1, 2017 Net Net IsraelChemicals ICL 4.56 -0.04 s PNC Fin PNC 121.14 0.68 TechnipFMC FTI 33.71 0.09 WABCO WBC 112.23 3.20 BioMarinPharm BMRN 88.59 0.96 Intuit INTU 117.71 -0.87 SeattleGenetics SGEN 59.69 -0.55
Stock Sym Close Chg Stock Sym Close Chg ItauUnibanco ITUB 11.96 0.15 s POSCO PKX 59.67 1.79 TeckRscsB TECK 25.36 0.82 EWEC Energy WEC 57.22 -1.83 BlackBerry BBRY 7.00 -0.06 IntuitiveSurgical ISRG 697.02 4.33 Shire SHPG 170.39 2.58
Net 8.53 -0.08 W.P.Carey WPC 61.28 -0.66 Broadcom AVGO 203.69 4.19 IonisPharma IONS 44.39 -0.11 SignatureBank SBNY 156.05 -1.47
JPMorganChase JPM 84.95 0.32 PPG Ind PPG 100.56 0.55 TelecomItalia TI
Stock Sym Close Chg BoardwalkPipe BWP 18.58 0.12 DouglasEmmett DEI 37.22 -0.62 JacobsEngineering JEC 58.84 0.29 PPL PPL 34.95 0.11 TelecomItalia A TI/A 7.04 -0.09 WPX Energy WPX 13.89 -0.04 CA CA 30.95 -0.32 JD.com JD 28.13 -0.27 SiriusXM SIRI 4.77 0.05
Boeing BA 163.97 0.55 Dover DOV 78.22 0.47 JamesHardie JHX 16.07 0.30 PVH PVH 89.87 -3.94 Teleflex TFX 167.77 0.04 Wabtec WAB 86.78 0.14 s CBOE Holdings CBOE 78.45 -1.17 JackHenry JKHY 89.08 -0.70 s Skyworks SWKS 91.74 ...
NYSE BorgWarner BWA 41.03 0.20 DowChemical DOW 60.30 0.67 J&J JNJ 113.23 -0.02 PackagingCpAm PKG 93.10 0.92 TelefonicaBras VIV 15.10 0.32 Wal-Mart WMT 66.23 -0.51 s CDK Global CDK 62.05 -0.50 JazzPharma JAZZ 123.23 1.31 Splunk SPLK 58.14 0.28
BostonProperties BXP 129.27 -1.63 DrPepperSnap DPS 90.41 -0.79 -1.47 Telefonica TEF 9.53 -0.11 WasteConnections WCN 79.91 -0.39 CDW JBLU 19.38 -0.23 Staples
ABB ABB 23.75 -0.07 JohnsonControls JCI 42.50 -1.48 PaloAltoNtwks PANW 146.09 CDW 52.88 1.37 JetBlue SPLS 9.03 -0.17
BostonScientific BSX 23.96 -0.10 DrReddy'sLab RDY 45.14 -0.06 JoyGlobal JOY 28.12 ... ParkHotels PK 26.48 -0.66 TelekmIndonesia TLK 29.21 -0.21 WasteMgt WM 69.18 -0.32 CH Robinson CHRW 75.11 -0.95 KLA Tencor KLAC 86.04 0.93 Starbucks SBUX 53.90 -1.32
AECOM ACM 37.20 0.27 Braskem BAK 20.63 -0.06 DuPont DD 76.34 0.84 JuniperNetworks JNPR 26.81 0.03 ParkerHannifin PH 145.45 -1.68 Tenaris TS 34.83 -0.21 Waters WAT 145.73 4.08 CME Group CME 120.90 -0.18 KraftHeinz KHC 88.41 -0.88 SteelDynamics STLD 33.47 -0.34
AES AES 11.24 -0.20 Bristol-Myers BMY 49.29 0.13 DukeEnergy DUK 77.36 -1.18 KAR Auction KAR 45.05 -0.50 ParsleyEnergy PE 35.09 -0.13 Teradyne TER 28.61 0.23 Watsco WSO 153.36 0.62 CSX CSX 47.09 0.70 LKQ LKQ 31.70 -0.21 Stericycle SRCL 76.48 -0.66
Aflac AFL 67.14 -2.85 BrixmorProp BRX 23.91 -0.22 DukeRealty DRE 24.22 -0.11 s KB Fin KB 41.09 0.49 Pearson PSO 8.02 0.28 Tesoro TSO 80.98 0.13 s WellCareHealth WCG 147.80 2.26 CadenceDesign CDNS 25.82 -0.21 LamResearch LRCX 117.74 2.88 s Symantec SYMC 27.25 -0.30
AT&T T 42.06 -0.10 BroadridgeFinl BR 65.87 -0.66 ENI E 30.53 -0.38 KKR KKR 17.58 0.22 PembinaPipeline PBA 31.00 -0.01 TesoroLogistics TLLP 56.64 -0.33 WellsFargo WFC 55.91 -0.04 Celgene LamarAdvertising LAMR 74.93 -0.59 s Synopsys SNPS 62.62 -0.27
AXIS Capital AXS 64.57 0.56 BrookfieldMgt BAM 34.66 CELG 117.41 1.26
0.08 EOG Rscs EOG 101.00 -0.58 KT KT 14.98 0.11 Pentair PNR 58.12 -0.51 TevaPharm TEVA 34.69 1.26 Welltower HCN 65.27 -1.03 Cerner LibertyBroadbandA LBRDA 83.97 0.29 TD Ameritrade AMTD 46.09 -0.06
AbbottLabs ABT 42.33 0.56 BrookfieldInfr BIP 34.63 -0.32 EQT
CERN 53.86 0.15
EQT 60.78 0.15 KSCitySouthern KSU 86.05 0.14 PepsiCo PEP 103.01 -0.77 Textron TXT 47.09 -0.28 WestPharmSvcs WST 84.50 -0.13 CharterComms CHTR 326.85 2.90 LibertyBroadbandC LBRDK 85.47 0.13 s TESARO TSRO 161.07 -1.77
AbbVie ABBV 60.89 -0.22 Brown&Brown BRO 41.95 -0.04 EQT Midstream EQM 79.39 1.98
Accenture ACN 113.21 -0.66 Kellogg K 71.90 -0.81 PerkinElmer PKI 53.76 0.57 ThermoFisherSci TMO 152.94 0.55 WestarEnergy WR 54.71 0.02 CheckPointSftw CHKP 97.91 -0.86 LibertyGlobal A LBTYA 36.23 -0.25 T-MobileUS TMUS 63.26 0.99
Brown-Forman A BF/A 46.37 -0.41 EastmanChem EMN 78.30 0.80 KeyCorp KEY 18.04 0.07 Perrigo PRGO 76.77 0.62 ThomsonReuters TRI 44.56 -0.28 s WestAllianceBcp WAL 49.31 -0.07 CincinnatiFin CINF 70.06 -0.52 LibertyGlobal C LBTYK 35.00 -0.13 TRowePrice TROW 66.77 -0.67
AcuityBrands AYI 206.11 -1.12 Brown-Forman B BF/B 45.01 -0.59 s Eaton ETN 71.31 0.53
Adient ADNT 64.14 0.65 KeysightTechs KEYS 36.72 -0.35 PetroChina PTR 78.68 -0.81 ThorIndustries THO 104.06 0.56 WesternGasEquity WGP 44.96 0.09 Cintas CTAS 114.85 -1.26
LibertyLiLAC A LILA 22.90 -0.12 TeslaMotors TSLA 249.24 -2.69
s Brunswick BC 60.79 0.93 Ecolab ECL 120.78 0.65 KilroyRealty KRC 73.25 -1.60 PetroleoBrasil PBR 10.23 -0.03 3M MMM 175.17 0.35 WesternGasPtrs WES 62.70 1.32 LibertyLiLAC C LILAK 22.15 -0.17 TexasInstruments TXN 76.27 0.73
AdvanceAuto AAP 160.59 -3.65 BuckeyePtrs BPL 70.59 0.88 Ecopetrol 9.58 0.18
CiscoSystems CSCO 30.50 -0.22
EC KimberlyClark KMB 121.01 -0.12 PetroleoBrasilA PBR/A 9.55 0.04 Tiffany TIF 78.00 -0.72 WesternUnion WU 19.54 -0.04 LibertyQVC B QVCB 18.96 -1.03 TractorSupply TSCO 72.37 -1.30
AdvSemiEngg ASX 5.78 0.06 CitrixSystems CTXS 71.24 -1.37
Aegon AEG 5.55 0.07
Bunge BG 68.69 -0.52 EdisonInt EIX 71.60 -1.28 KimcoRealty KIM 24.57 -0.32 Pfizer PFE 31.67 0.26 s TimeWarner TWX 96.72 -0.13 WestlakeChem WLK 64.07 2.16 s Cognex CGNX 67.94 0.38
LibertyQVC A QVCA 18.85 -0.33 Trimble TRMB 29.62 ...
BurlingtonStores BURL 82.41 -1.29 EdwardsLife EW 98.02 1.78 KinderMorgan KMI 22.23 -0.11 PhilipMorris PM 95.95 -0.18 Torchmark TMK 73.54 ... WestpacBanking WBK 24.39 0.25 LibertyVenturesA LVNTA 43.45 -0.20 TripAdvisor TRIP 51.87 -1.03
AerCap AER 44.40 0.13 CBRE Group CBG 30.49 0.13 EmersonElectric EMR 58.78 0.12 KinrossGold KGC 3.88 -0.02 Phillips66 PSX 80.75 -0.87 Toro TTC 58.85 -0.08 WestRock WRK 53.21 -0.15 CognizantTech CTSH 52.45 -0.14 LincolnElectric LECO 82.91 -0.46 s 21stCenturyFoxA FOXA 31.62 0.24
Aetna AET 121.61 3.00 CBS/A 65.85 0.08 EnbridgeEnPtrs EEP 19.84 0.47 Comcast A CMCSA 75.61 0.19 LinearTech LLTC 63.41 0.28
CBS A Kohl's KSS 39.48 -0.35 PinnacleFoods PF 53.04 -0.15 TorontoDomBk TD 51.66 -0.11 Weyerhaeuser WY 31.11 -0.22 s 21stCenturyFoxB FOX 31.24 0.23
AffiliatedMgrs AMG 156.58 4.22 CBS B CBS 64.60 0.11 Enbridge ENB 42.27 -0.33 KoninklijkePhil PHG 29.14 -0.24 PinnacleWest PNW 76.69 -0.94 Total TOT 50.36 -0.20 Whirlpool WHR 173.94 -0.95 CommerceBcshrs CBSH 55.63 -0.90 lululemon LULU 66.40 -1.11 UltaBeauty ULTA 269.54 -2.74
s AgilentTechs A 49.26 0.29 CF Industries CF 36.63 1.34 Encana s CommScope COMM 38.00 0.18 s
ECA 12.71 -0.05 KoreaElcPwr KEP 18.21 -0.13 PioneerNatRscs PXD 180.66 0.43 TotalSystem TSS 50.32 -0.36 WhiteWaveFoods WWAV 54.95 -0.11 MarketAxess MKTX 188.14 0.89 UltimateSoftware ULTI 189.20 -4.46
AgnicoEagle AEM 47.40 -0.30 CGI Group GIB 48.95 0.86 Endurance ENH 92.74 0.05 Copart CPRT 55.96 -0.78
Kroger KR 33.44 -0.52 PlainsAllAmPipe PAA 31.78 0.39 ToyotaMotor TM 115.26 -0.49 Williams WMB 28.33 -0.51 CoStarGroup CSGP 203.29 1.19 Marriott MAR 84.64 0.04 s UnitedTherap UTHR 164.03 0.40
Agrium AGU 102.63 -0.28 s MarvellTech MRVL 15.33 0.46 VCA
CIT Group CIT 40.73 -0.46 EnelAmericas ENIA 9.11 0.08 Kyocera KYO 54.08 -0.62 PolarisIndustries PII 84.44 0.37 TransCanada TRP 47.15 -0.07 WilliamsPartners WPZ 40.59 0.40 WOOF 90.63 0.03
AirProducts APD 138.68 -1.08 Costco COST 161.86 -2.09
AlaskaAir ALK 93.63 -0.19
CMS Energy CMS 42.12 -0.15 EnelGenChile EOCC 18.80 -0.58 LATAMAirlines LFL 9.19 0.02 PostHoldings POST 83.73 0.05 TransDigm TDG 219.68 3.28 t Wipro WIT 9.05 -0.15 Ctrip.com CTRP 43.01 -0.20 t Mattel MAT 25.51 -0.70 VeriSign VRSN 80.23 0.02
CNA Fin CNA 41.66 0.01 Energen EGN 54.20 0.31 L Brands LB 58.80 -1.41 Potash POT 18.55 -0.05 Transocean RIG 13.99 0.02 WooriBank WF 34.82 0.65 MaximIntProducts MXIM 44.76 0.28 VeriskAnalytics VRSK 81.76 -0.88
Albemarle ALB 93.41 0.77 DISH Network DISH 61.14 1.97
CNOOC CEO 125.73 -0.10 EnergyTrfrEquity ETE 18.09 0.14 LGDisplay LPL 13.57 0.09 Praxair PX 117.95 -0.49 TransUnion TRU 31.84 0.31 Workday WDAY 82.38 -0.71 DentsplySirona XRAY 56.90 0.20 MelcoCrownEnt MPEL 16.37 -0.47 VertxPharm VRTX 86.24 0.37
Alcoa AA 36.26 -0.19 CPFLEnergia CPL 16.15 0.09 EnergyTrfrPtrs ETP 38.99 0.84 TRV 116.54 -1.24 Wyndham WYN 79.28 0.22 MercadoLibre MELI 188.58 3.19
LINE LN 31.92 0.07 PrincipalFin PFG 57.20 0.11 Travelers
AlexandriaRealEst ARE 108.28 -2.54 DexCom DXCM 79.44 0.29 MicrochipTech MCHP 68.41 1.06 Viacom A VIA 44.70 -0.55
CRH CRH 35.54 1.02 Enerplus ERF 9.20 0.27 L3 Tech LLL 157.61 -1.08 Procter&Gamble PG 87.33 -0.27 TurkcellIletism TKC 7.36 -0.09 XcelEnergy XEL 40.63 -0.69
Alibaba BABA 101.57 0.26 CVS Health CVS 77.97 -0.84 EnLinkMidPtrs ENLK 18.60 0.67 TurquoiseHill TRQ 3.69 0.08 DiamondbackEner FANG 105.76 0.59 s MicronTech MU 24.75 0.64 Viacom B VIAB 41.65 -0.49
LabCpAm LH 136.37 2.16 Progressive PGR 36.94 0.18 Xerox XRX 7.07 0.14 DiscoveryComm A DISCA 28.04 -0.31 VimpelCom VIP 4.12 -0.11
Alleghany Y 615.27 3.70 COG 20.77 -0.71 Entergy TWTR 17.24 -0.38 Xylem
Allegion ALLE 65.94 0.27
CabotOil ETR 70.72 -0.92 LambWeston LW 37.77 0.41 Prologis PLD 48.44 -0.41 Twitter XYL 49.15 -0.16 DiscoveryComm C DISCK 27.40 -0.31 Microsemi MSCC 53.55 0.40 Vodafone VOD 24.80 -0.10
CamdenProperty CPT 81.57 -2.00 EnterpriseProd EPD 28.13 -0.20 LasVegasSands LVS 51.75 -0.83 PrudentialFin PRU 105.56 0.45 TylerTech TYL 146.32 0.30 YPF YPF 21.77 0.10 DollarTree DLTR 76.39 -0.80 Microsoft MSFT 63.58 -1.07 WPP WPPGY 116.26 0.02
Allergan AGN 229.32 10.43 Cameco CCJ 11.27 -1.48 EnvisionHlthcr EVHC 68.90 0.90 Lazard LAZ 43.04 0.56 Prudential PUK 39.49 0.70 TysonFoods TSN 64.30 1.51 YanzhouCoal YZC 7.73 0.04 Middleby MIDD 133.29 -0.89
AllianceData ADS 230.39 2.01 CampbellSoup CPB 62.49 0.26 Equifax EFX 117.21 -0.07 Lear LEA 142.65 0.56 PublicServiceEnt PEG 43.37 -0.88 UBS Group UBS 16.05 -0.06 YumBrands YUM 64.87 -0.66
Dunkin' DNKN 50.87 -1.00 Mondelez MDLZ 43.89 -0.39 WalgreensBoots WBA 81.04 -0.90
AllianceBernstein AB 23.25 -0.10 Weibo WB 47.97 -0.25
CIBC CM 85.85 0.65 EquityLife ELS 72.61 -1.33 Leggett&Platt LEG 48.56 0.84 PublicStorage PSA 213.29 -1.71 UDR UDR 34.48 -0.47 YumChina YUMC 27.56 0.08 E*TRADE ETFC 37.58 0.13 MonsterBeverage MNST 41.82 -0.78 WesternDigital WDC 79.16 -0.57
AlliantEnergy LNT 36.98 -0.67 UGI 45.75 -0.62 ZTO Express ZTO 12.77 0.30 EastWestBancorp EWBC 51.58 0.14 Mylan MYL 38.66 0.61 WholeFoods WFM 29.83 -0.39
CanNtlRlwy CNI 69.07 -0.45 EquityResdntl EQR 59.90 -0.87 Leidos LDOS 48.31 -0.01 PulteGroup PHM 21.21 -0.30 UGI
AllisonTransm ALSN 35.04 0.06 EBAY 32.18 0.35 NXP Semi NXPI 97.75 -0.10
CanNaturalRes CNQ 30.13 -0.10 EssexProp ESS 221.72 -2.58 Lennar A LEN 44.89 0.24 QuantaServices PWR 35.70 -0.19 US Foods USFD 27.10 -0.10 ZayoGroup ZAYO 31.37 -0.59 eBay WillisTwrsWatson WLTW 124.30 -0.83
s Allstate ALL 75.24 0.03 CanPacRlwy CP 150.94 -0.20 EsteeLauder EL 79.92 -1.29 Lennar B LEN/B 36.12 0.16 QuestDiag DGX 92.55 0.63 UltraparPart UGP 20.60 -0.34 ZimmerBiomet ZBH 118.51 0.18 ElectronicArts EA 83.00 -0.43 Nasdaq NDAQ 70.75 0.21 WynnResorts WYNN 97.86 -3.57
s AllyFinancial ALLY 21.60 0.48 Equinix EQIX 381.30 -3.68 NetApp
Canon CAJ 29.21 -0.36 EverestRe RE 219.50 -0.43 LennoxIntl LII 157.19 0.38 QuintilesIMS Q 78.56 0.07 UnderArmour A UAA 21.44 -0.05 s Zoetis ZTS 55.32 0.38 NTAP 38.05 -0.27 Xilinx XLNX 57.39 -0.81
s Altria MO 71.39 0.21 Ericsson ERIC 5.86 -0.03 Netease
CapitalOne COF 87.51 0.12 EversourceEner ES 54.70 -0.62 LeucadiaNatl LUK 23.94 0.09 RELX RENX 16.86 0.02 UnderArmour C UA 18.80 -0.42 NTES 253.82 -0.08 Yahoo YHOO 43.78 -0.29
s AlumofChina ACH 13.30 0.41 ErieIndemnity A ERIE 111.56 -0.55 Netflix
Ambev ABEV 5.48 0.09
CardinalHealth CAH 75.35 0.39 Exelon EXC 35.45 -0.43 s Level3Comm LVLT 59.11 -0.35 RELX RELX 18.20 -0.01 Unilever UN 40.56 -0.09
UL 41.11 ...
NASDAQ Exelixis EXEL 18.82 0.70
NFLX 140.78 0.07 Yandex
NewsCorp A NWSA 12.36 0.07 Zillow A
YNDX 23.36 0.22
Carlisle CSL 109.73 0.62 ExtraSpaceSt EXR 71.64 -0.41 LibertyProperty LPT 37.58 -0.81 RPM RPM 51.89 -0.37 Unilever ZG 35.71 -0.27
Ameren AEE 51.75 -0.90 CarMax KMX 65.19 -1.52 ExxonMobil XOM 82.94 -0.95 EliLilly LLY 77.60 0.57 RSP Permian RSPP 42.64 0.08 UnionPacific UNP 107.70 1.12 AGNC Invt AGNC 18.56 -0.11 Expedia EXPE 120.77 -0.82 NewsCorp B NWS 12.70 0.05
Zillow C Z 35.20 -0.18
AmericaMovil AMX 12.57 -0.04 Carnival CCL 55.47 0.09 FMC FMC 60.60 0.44 LincolnNational LNC 68.92 1.41 RalphLauren RL 87.37 -1.06 UnitedContinental UAL 71.48 1.01 Ansys ANSS 93.24 -0.02 ExpeditorsIntl EXPD 52.29 0.21 Nordson NDSN 113.74 0.21 ZionsBancorp ZION 42.46 0.27
AmericaMovil A AMOV 12.46 -0.11 Carnival CUK 54.49 0.12 FactSet FDS 172.90 -0.15 LionsGate A LGF/A 28.43 -0.34 RangeResources RRC 31.81 -0.53 UPS B UPS 105.35 -3.78 ARRIS Intl ARRS 29.19 0.61 ExpressScripts ESRX 69.11 0.23 NorthernTrust NTRS 83.31 0.35
AmCampus ACC 47.63 -0.99 0.55 s UnitedRentals URI 129.89 3.38 ASML 132.34 -1.69
AEP AEP 63.09 -0.97
Caterpillar CAT 95.11 -0.55 FederalRealty FRT 137.50 -2.93 LiveNationEnt LYV 28.47 -0.15 RaymondJames RJF 75.48 ASML 121.31 -0.09 F5Networks FFIV NorwegianCruise NCLH 48.08 1.08 NYSE MKT
Celanese A CE 85.99 1.59 FedEx FDX 186.27 -2.84 LloydsBanking LYG 3.36 0.04 Raytheon RTN 144.81 0.65 s US Bancorp USB 53.03 0.38 ActivisionBliz ATVI 40.47 0.26 Facebook FB 133.23 2.91 NVIDIA NVDA 113.95 4.77
AmericanExpress AXP 76.76 0.38 Cemex CX 9.13 -0.13 FiatChrysler FCAU 10.98 -0.01 LockheedMartin LMT 250.90 -0.43 RealtyIncome O 58.31 -1.32 US Steel X 31.33 -1.38 AdobeSystems ADBE 113.36 -0.02 Fastenal FAST 49.62 -0.06 OReillyAuto ORLY 254.35 -7.92 BritishAmTob BTI 122.81 -0.39
AmericanFin AFG 86.54 0.37 Cencosud CNCO 8.79 0.18 FibriaCelulose FBR 9.05 -0.17 Loews L 46.20 -0.38 RedHat RHT 76.07 0.19 UnitedTech UTX 108.18 -1.49 AkamaiTech AKAM 68.70 0.11 FifthThirdBncp FITB 26.24 0.14 OldDomFreight ODFL 87.73 -0.55 CheniereEnergy LNG 47.10 -0.55
AmerHomes4Rent AMH 22.25 -0.03 CenovusEnergy CVE 13.60 -0.03 FidelityNatlFin FNF 35.60 0.24 Lowe's LOW 72.35 -0.73 RegencyCtrs REG 68.69 -1.04 UnitedHealth UNH 162.71 0.61 AlexionPharm ALXN 132.32 1.64 Fiserv FISV 105.38 -2.05 ON Semi ON 13.70 0.38 CheniereEnerPtrs CQP 29.89 0.14
AIG AIG 64.27 0.01 Centene CNC 64.20 0.93 FNFV Group FNFV 13.00 ... Luxottica LUX 52.50 -1.06 RegionsFin RF 14.46 0.05 UniversalHealthB UHS 113.94 1.31 AlignTech ALGN 97.25 5.56 Flex FLEX 15.49 -0.18 OpenText OTEX 33.75 -0.52 CheniereEnHldgs CQH 23.05 0.20
AmerTowerREIT AMT 103.28 -0.22 s CenterPointEner CNP 25.93 -0.28 FidelityNtlInfo FIS 79.02 -0.40 LyondellBasell LYB 95.07 1.80 ReinsuranceGrp RGA 126.50 1.03 UnumGroup UNM 45.77 0.34 Alkermes ALKS 54.70 0.59 Fortinet FTNT 33.10 -0.16 PTC PTC 52.19 -0.38 ImperialOil IMO 33.02 0.14
AmerWaterWorks AWK 71.80 -1.64 CentraisElBras EBR 6.64 0.07 FirstData FDC 15.25 -0.09 s M&T Bank MTB 162.72 0.15 RelianceSteel RS 79.78 0.13
Amerigas APU 49.15 -0.06 CenturyLink CTL 25.51 -0.35 s FirstRepBank FRC 93.89 -0.44 MDU Rscs MDU 27.82 -1.53 s RenaissanceRe RNR 141.50 5.18
Ameriprise AMP 113.08 0.81 ChesapeakeEner CHK 6.40 -0.05 FirstEnergy FE 29.84 -0.48 RepublicServices RSG 56.90 -0.48
Borrowing Benchmarks | WSJ.com/bonds
MGM Resorts MGM 28.56 -0.24
AmerisourceBrgn ABC 88.61 1.33 Chevron CVX 111.00 -0.35 FleetCorTech FLT 146.34 -1.15 MPLX MPLX 37.80 -0.05 ResMed RMD 66.95 -0.59
Ametek AME 51.09 -0.01 ChinaEastrnAir CEA 25.22 0.07 Flowserve FLS 49.27 0.11 MSCI MSCI 83.75 1.00 RestaurantBrands QSR 48.93 -0.15
Amphenol APH 66.60 -0.89 ChinaLifeIns LFC 13.73 -0.02 Fluor FLR 55.62 0.12 MSC Industrial MSM 101.78 -0.37 ReynoldsAmer RAI 59.95 -0.18
AnadarkoPetrol APC 68.36 -1.17
AB InBev BUD 104.35 0.09
ChinaMobile CHL 56.91
ChinaPetrol SNP 79.86
-0.09 FomentoEconMex FMX 76.96 1.73
-0.18 FootLocker FL 68.31 -0.23
Macerich MAC 68.31 -0.38 RioTinto
t RiteAid
RIO 45.44 0.65 Money Rates February 1, 2017
MacquarieInfr MIC 75.82 0.83 RAD 5.27 -0.35
AnnalyCap NLY 10.23 0.01 ChinaSoAirlines ZNH 28.83 -0.13 FordMotor F 12.32 -0.04 Macy's M 29.21 -0.33 RobertHalf RHI 47.22 0.16
AnteroMidstream AM 33.80 0.28 ChinaTelecom CHA 47.79 -0.26 ForestCIty A FCE/A 22.54 -0.10 MagellanMid MMP 80.85 1.68 Rockwell ROK 147.76 -0.23
Key annual interest rates paid to borrow or lend money in U.S. and international markets. Rates below are a
AnteroResources AR 24.65 0.24 ChinaUnicom CHU 11.90 -0.07 s ForestCity B FCE/B 29.05 -0.05 MagnaIntl MGA 43.46 0.18 RockwellCollins COL 90.20 -0.56 guide to general levels but don’t always represent actual transactions.
s Anthem ANTM160.79 6.65 Chipotle CMG 420.23 -1.21 Fortis FTS 31.76 -0.38 s Manpower MAN 97.34 1.88 RogersComm B RCI 43.18 -0.22
Aon AON 111.17 -1.53 Chubb CB 128.48 -3.01 Fortive FTV 55.13 -0.18 ManulifeFin MFC 19.15 -0.01 Rollins ROL 34.98 -0.28 Week —52-WEEK— Week —52-WEEK—
Apache APA 57.78 -2.04 ChunghwaTelecom CHT 31.37 -0.19 FortBrandsHome FBHS 56.30 1.17 MarathonOil MRO 16.59 -0.16 s RoperTech ROP 191.36 -0.49 Inflation Latest ago High Low Latest ago High Low
ApartmtInv AIV 43.23 -0.84 Church&Dwight CHD 45.25 0.03 Franco-Nevada FNV 65.43 0.39 MarathonPetrol MPC 47.71 -0.34 RoyalBkCanada RY 71.77 -0.10
AquaAmerica WTR 29.62 -0.79 s Cigna CI 147.64 1.42 FranklinRscs BEN 39.99 0.25
Dec. index Chg From (%)
MarineHarvest MHG 17.94 0.27 RoyalBkScotland RBS 5.73 0.11
Aramark ARMK 33.16 -0.68 CimarexEnergy XEC 133.50 -1.71 Freeport-McMoRan FCX 16.84 0.19 Markel MKL 922.89 -2.11 RoyalCaribbean RCL 94.33 0.70 level Nov. '16 Dec. '15 Secondary market Libor
ArcelorMittal MT 7.90 0.11 Citigroup C 56.05 0.22 FreseniusMed FMS 41.16 0.36 Marsh&McLennan MMC 67.41 -0.61 RoyalDutchA RDS/A 54.27 -0.12
ArcherDaniels ADM 43.77 -0.49
One month 0.78000 0.77611 0.78000 0.42650
CitizensFin CFG 36.49 0.32 GGP GGP 24.71 -0.13 MartinMarietta MLM 230.50 0.90 RoyalDutchB RDS/B 57.35 -0.12 U.S. consumer price index Fannie Mae Three month 1.03456 1.03733 1.04344 0.61720
Arconic ARNC 25.28 2.55 Clorox CLX 120.73 0.73 Gallagher AJG 53.44 -0.39 Masco MAS 33.26 0.31 SAP SAP 90.71 -0.80
AristaNetworks ANET 94.28 0.28 Coach COH 37.81 0.46 Gap GPS 22.53 -0.50 Mastercard MA 105.00 -1.33 S&P Global SPGI 119.57 -0.61
All items 241.432 0.03 2.1 30-year mortgage yields Six month 1.35044 1.35683 1.36183 0.85785
ArrowElec ARW 73.10 -0.42 Coca-Cola KO 41.26 -0.31 Gartner IT 98.81 -0.55 McCormick MKC 94.55 -1.00 SINOPECShanghai SHI 62.81 0.47 Core 249.134 –0.04 2.2 One year 1.71511 1.71872 1.73289 1.11560
AshlandGlobal ASH 119.40 0.37 Coca-Cola Euro CCE 34.74 0.21 Gazit-Globe GZT 9.46 0.19
30 days 3.718 3.695 3.828 2.806
McCormickVtg MKC/V 94.42 -1.08 SK Telecom SKM 21.32 -0.18
Assurant AIZ 97.36 0.23 Coca-Cola Femsa KOF 62.89 0.87 GeneralDynamics GD 181.03 -0.05 McDonalds MCD 122.42 -0.15 SLGreenRealty SLG 106.90 -2.07 International rates 60 days 3.748 3.727 3.862 2.832 Euro Libor
AstraZeneca AZN 27.76 0.53 Colgate-Palmolive CL 64.72 0.14 GeneralElec GE 29.69 -0.01 McKesson MCK 140.03 0.88 Salesforce.com CRM 78.58 -0.52
Athene ATH 47.17 0.24 ColonyNorthStar CLNS 14.14 0.22 GeneralMills GIS 61.37 -1.11 MeadJohnson MJN 69.50 -0.96 Sanofi SNY 40.88 0.10 Other short-term rates One month -0.383 -0.384 -0.237 -0.386
AtmosEnergy ATO 74.56 -1.62 Week 52-Week Three month -0.344 -0.344 -0.184 -0.345
Comerica CMA 68.14 0.61 GeneralMotors GM 36.14 -0.47 Mednax MD 67.84 -0.51 Sasol SSL 29.78 -0.08
Autoliv ALV 116.39 0.73 Latest ago High Low
SABESP SBS 10.01 0.05 GenuineParts GPC 96.34 -0.47 Medtronic MDT 76.00 -0.02 Scana SCG 68.28 -0.42 Week 52-Week Six month -0.242 -0.240 -0.107 -0.242
AutoNation AN 52.42 -0.70 CSC CSC 62.25 0.05 Gerdau GGB 3.96 0.13 Merck MRK 62.10 0.11 Schlumberger SLB 83.17 -0.54 Latest ago high low One year -0.102 -0.097 0.000 -0.102
AutoZone AZO 714.99 -9.99 ConagraBrands CAG 38.94 -0.15 Gildan GIL 26.07 -0.10 MetLife MET 54.32 -0.09 SchwabC SCHW 41.34 0.10 Prime rates
Avalonbay AVB 169.61 -3.70 ConchoRscs CXO 139.82 0.38 GlaxoSmithKline GSK 39.46 0.15 s MettlerToledo MTD 435.50 8.87 ScottsMiracleGro SMG 90.94 -1.03 U.S.
Avangrid AGR 38.55 -0.25 3.75 3.75 3.75 3.50 Euro interbank offered rate (Euribor)
ConocoPhillips COP 48.50 -0.26 GlobalPayments GPN 77.05 -0.23 MichaelKors KORS 41.34 -1.47 SealedAir SEE 48.90 0.40
Canada 2.70 2.70 2.70 2.70
Call money
s AveryDennison AVY 79.65 6.63 ED 73.33 -1.02 Goldcorp GG 15.96 -0.21
ConEd MidAmApt MAA 93.78 -1.17 SemicondctrMfg SMI 6.78 -0.10 One month -0.372 -0.372 -0.232 -0.374
Avnet AVT 46.33 -0.11 ConstBrands A STZ 149.85 0.09 GoldmanSachs GS 230.67 1.35 MitsubishiUFJ MTU 6.38 -0.01 SempraEnergy SRE 101.42 -0.97 Japan 1.475 1.475 1.475 1.475 2.50 2.50 2.50 2.25
AxaltaCoating AXTA 29.41 0.41 Three month -0.328 -0.328 -0.162 -0.329
ContinentalRscs CLR 48.38 -0.18 Grainger GWW 253.68 1.11 MizuhoFin MFG 3.66 -0.02 SensataTech ST 42.41 0.46
BB&T BBT 45.95 -0.24 Cooper COO 185.71 1.10 GreatPlainsEner GXP 27.00 -0.55 MobileTeleSys MBT 10.45 -0.02 ServiceCorp SCI 29.18 0.05 Policy Rates Commercial paper Six month -0.244 -0.242 -0.096 -0.244
BCE BCE 44.74 -0.38 CoreLabs CLB 117.77 0.94 GpoAvalAcciones AVAL 8.37 0.05 Mobileye MBLY 42.95 -0.01 ServiceNow NOW 89.70 -0.92 One year -0.103 -0.101 0.008 -0.103
BHPBilliton BHP 41.41 0.12 Corning GLW 26.21 -0.28 GpFinSantandMex BSMX 7.16 0.01 MohawkIndustries MHK 215.87 0.03 ShawComm B SJR 21.51 -0.08
Euro zone 0.00 0.00 0.05 0.00 30 to 270 days n.q. ... ... ...
BHPBilliton BBL 36.85 0.26 Coty COTY 18.94 -0.26 GrupoTelevisa TV 22.16 -0.24 MolsonCoors B TAP 96.42 -0.10 SherwinWilliams SHW 306.18 2.37 Switzerland 0.50 0.50 0.50 0.50 Value 52-Week
BP BP 35.99 0.01 Credicorp BAP 163.30 -0.38 GuangshenRail GSH 32.05 -0.16 Monsanto MON 108.46 0.15 ShinhanFin SHG 39.77 0.23 Britain 0.25 0.25 0.50 0.25 Commercial paper (AA financial) Latest Traded High Low
BRF BRFS 14.00 -0.13 CreditSuisse CS 15.32 0.12 HCAHoldings HCA 81.96 1.68 Moody's MCO 103.55 -0.12 Shopify SHOP 51.19 0.37 Australia 1.50 1.50 2.00 1.50
BT Group BT 19.58 0.22 CrescentPoint CPG 11.55 -0.12 HCP HCP 30.04 -0.28 MorganStanley MS 42.70 0.21 SignetJewelers SIG 77.01 -0.66 90 days 0.92 0.92 1.03 0.45 DTCC GCF Repo Index
BakerHughes BHI 62.58 -0.50 CrestwoodEquity CEQP 27.55 0.10 HDFC Bank HDB 70.18 1.25 Mosaic MOS 31.68 0.31 SilverWheaton SLW 22.13 ... Overnight repurchase
Ball BLL 76.53 0.27 CrownCastle CCI 86.65 -1.18 HP HPQ 14.99 -0.06 MotorolaSolutions MSI 80.03 -0.68 SimonProperty SPG 181.53 -2.24
Treasury 0.629 57.780 1.266 0.244
Euro commercial paper MBS 0.651 78.650 1.328 0.257
BancoBilbaoViz BBVA 6.64 -0.17 CrownHoldings CCK 53.80 -0.37 HSBCHoldings HSBC 42.78 0.18 NCR NCR 42.62 -0.40 SixFlags SIX 60.35 0.77 U.S. 0.63 0.62 1.30 0.15
BancodeChile BCH 71.78 0.47 Cullen/Frost CFR 89.27 -0.13 Halliburton HAL 56.23 -0.34 NRG Energy NRG 16.34 -0.20 SmithAO AOS 48.45 -0.30 30 day n.q. n.q. -0.13 -0.14 Open Implied
BcoSantChile BSAC 21.36 -0.23 Cummins CMI 147.32 0.31 Hanesbrands HBI 23.23 -0.48 NTTDoCoMo DCM 23.95 0.03 Smith&Nephew SNN 30.61 0.23 U.S. government rates Two month n.q. n.q. n.q. n.q. Settle Change Interest Rate
BancoSantander SAN 5.64 0.08 DDR DDR 15.02 -0.16 HarleyDavidson HOG 56.59 -0.45 NVR NVR 1856.94 -1.06 Smucker SJM 135.50 -0.35
BanColombia CIB 38.00 0.14 DTE Energy DTE 97.93 -0.71 HarmanIntlInds HAR 111.26 0.10 NationalGrid NGG 58.03 -0.44 s SnapOn SNA 180.30 -1.23 Discount Three month n.q. n.q. n.q. n.q.
BankofAmerica BAC 22.89 0.25 s Danaher DHR 83.54 -0.38 Harris HRS 101.83 -0.88 NatlOilwell NOV 38.55 0.74 SOQUIMICH SQM 32.98 0.66 DTCC GCF Repo Index Futures
BankofMontreal BMO 75.31 -0.32 DRI 72.18 -1.10 HartfordFinl HIG 48.44 -0.27 NatlRetailProp NNN 42.15 -1.45 s SonocoProducts SON 55.03 0.08 1.25 1.25 1.25 1.00 Four month n.q. n.q. n.q. n.q.
Darden Treasury Feb 99.410 0.000 9022 0.590
BankNY Mellon BK 45.02 0.29 DaVita DVA 64.63 0.88 Helmerich&Payne HP 71.10 -0.06 NewOrientalEduc EDU 47.58 0.03 Sony SNE 30.24 -0.03 Five month n.q. n.q. n.q. n.q. Treasury Mar 99.320 0.000 3114 0.680
BkNovaScotia BNS 59.73 -0.05 Deere DE 107.15 0.10 Herbalife HLF 56.45 0.25 NY CmntyBcp NYCB 14.98 -0.21 Southern SO 48.55 -0.88 Federal funds
Barclays BCS 11.23 0.16 DelphiAutomotive DLPH 71.00 0.94 Hershey HSY 105.12 -0.35 NewellBrands NWL 47.45 0.12 SoCopper SCCO 38.60 0.24 Effective rate 0.6900 0.6900 0.7000 0.2700 Six month n.q. n.q. n.q. n.q. Treasury Apr 99.255 0.000 415 0.745
Bard CR BCR 236.30 -1.03 DeltaAir DAL 47.26 0.02 Hess HES 53.51 -0.67 NewfieldExpln NFX 39.89 -0.19 SouthwestAirlines LUV 52.73 0.42
BarrickGold ABX 18.48 0.04 DeutscheBank DB 20.47 0.56 HewlettPackard HPE 22.59 -0.09 NewmontMining NEM 35.87 -0.41 SpectraEnergy SE 41.26 -0.39
High 0.8125 0.8125 0.8125 0.5600
BaxterIntl BAX 48.10 0.19 DevonEnergy DVN 45.54 ... HighwoodsProp HIW 49.95 -1.46 NextEraEnergy NEE 122.62 -1.10 SpectraEnerPtrs SEP 45.20 -0.14 Low 0.5000 0.5000 0.6600 0.2000 Notes on data:
BectonDickinson BDX 178.97 1.68 Diageo DEO 111.85 -0.18 HiltonWorldwide HLT 57.35 -0.23 NielsenHoldings NLSN 41.32 0.41 SpectrumBrands SPB 132.08 -1.31 Bid 0.6800 0.6800 0.6800 0.2000 U.S. prime rate is effective December 15, 2016. Discount rate is effective December 15, 2016. U.S.
Berkley WRB 67.10 -0.11 Dick's DKS 51.20 -0.40 HomeDepot HD 137.44 -0.14 Nike NKE 53.02 0.12 SpiritAeroSys SPR 55.80 -4.25 Offer 0.7000 0.7500 0.7500 0.2600 prime rate is the base rate on corporate loans posted by at least 70% of the 10 largest U.S. banks;
BerkHathwy A BRK/A 245430-550.35 DigitalRealty DLR 106.40 -1.23 HondaMotor HMC 29.96 0.24 NipponTelegraph NTT 43.64 -0.53 Sprint S 9.01 -0.22 Other prime rates aren’t directly comparable; lending practices vary widely by location; DTCC GCF
BerkHathwy B BRK/B 163.61 -0.53 DiscoverFinSvcs DFS 68.77 -0.51 Honeywell HON 118.00 -0.32 NiSource NI 21.98 -0.39 StanleyBlackDck SWK 122.66 -1.34 Repo Index is Depository Trust & Clearing Corp.'s weighted average for overnight trades in applicable
BerryPlastics BERY 51.55 0.52 s Disney DIS 111.30 0.65 HormelFoods HRL 35.62 -0.68 NobleEnergy NBL 39.46 -0.30 StarwoodProp STWD 22.29 0.03
Treasury bill auction
CUSIPs. Value traded is in billions of U.S. dollars. Futures on the DTCC GCF Repo Index are traded on
BestBuy BBY 44.50 -0.02 DollarGeneral DG 73.39 -0.43 DR Horton DHI 29.68 -0.13 Nokia NOK 4.57 0.05 StateStreet STT 76.34 0.14 4 weeks 0.490 0.480 0.520 0.160 NYSE Liffe US.
Bio-RadLab A BIO 189.63 -0.45 DominionRscs D 71.85 -4.43 HostHotels HST 17.87 -0.20 NomuraHoldings NMR 6.35 0.17 Statoil STO 18.74 0.07 13 weeks 0.515 0.505 0.555 0.220 Sources: Federal Reserve; Bureau of Labor Statistics; DTCC; SIX Financial Information;
BlackRock BLK 373.00 -0.98 s Domino's DPZ 170.89 -3.65 HuanengPower HNP 25.82 -0.35 Nordstrom JWN 43.82 -0.40 Steris STE 71.68 0.85
s BlackstoneGroup BX 31.16 0.53 Donaldson DCI 42.01 -0.24 Hubbell HUBB 122.18 0.10 NorfolkSouthern NSC 119.93 3.08 s STMicroelec STM 13.69 0.45
26 weeks 0.625 0.600 0.660 0.340 General Electric Capital Corp.; Tullett Prebon Information, Ltd.

Dividend Changes Company Symbol

Amount
Yld % New/Old Frq
Payable /
Record Company Symbol
Amount
Yld % New/Old Frq
Payable /
Record Company Symbol
Amount
Yld % New/Old Frq
Payable /
Record
Dividend announcements from February 1. Guggenheim BS 2018 HY BSJI 4.3 .0897 M Feb07 /Feb03 iSh New York Muni Bd NYF 2.4 .22247 M Feb07 /Feb03 SPDR Bloomberg LT Corp Bd LWC 4.3 .14071 M Feb09 /Feb03
Guggenheim BS 2019 HY BSJJ 4.7 .0943 M Feb07 /Feb03 iSh Short Maturity Bd NEAR 1.3 .05341 M Feb07 /Feb03 SPDR Bloomberg LT Trea TLO 2.6 .14646 M Feb09 /Feb03
Amount Payable / Guggenheim BS 2020 HY BSJK 5.0 .1015 M Feb07 /Feb03 iSh Short Maturity Mun Bd MEAR 0.9 .03686 M Feb07 /Feb03 SPDR Bloomberg Mtg Bkd Bd MBG 2.9 .0628 M Feb09 /Feb03
Company Symbol Yld % New/Old Frq Record
Guggenheim BS 2021 HY BSJL 5.4 .1113 M Feb07 /Feb03 iSh Short Treasury Bd SHV 0.4 .04029 M Feb07 /Feb03 SPDR Bloomberg Scrd Cp Bd CBND 3.1 .08225 M Feb09 /Feb03
Increased Guggenheim BS 2022 HY BSJM 5.4 .1139 M Feb07 /Feb03 iSh Short-Tm Natl Muni Bd SUB 0.8 .07198 M Feb07 /Feb03 SPDR Bloomberg ST Corp Bd SCPB 1.7 .04347 M Feb09 /Feb03
Apartment Inv & Mgmnt AIV 3.3 .36 /.33 Q Feb28 /Feb17 Guggenheim BS 2023 HY BSJN 5.8 .1286 M Feb07 /Feb03 iSh Trea Floating Rate Bd TFLO 0.3 .01413 M Feb07 /Feb03 SPDR Bloomberg ST HY Bd SJNK 5.8 .1345 M Feb09 /Feb03
ConocoPhillips COP 2.2 .265 /.25 Q Mar01 /Feb14 Guggenheim BS 2024 HY BSJO 4.2 .088 M Feb07 /Feb03 iSh U.S. Credit Bd CRED 3.1 .28272 M Feb07 /Feb03 SPDR Bloomberg ST Trea SST 1.0 .02519 M Feb09 /Feb03
Eaton Vance TABS 5-to-15Y EVLMC 0.4 .0324 /.0286 M Feb07 /Feb03 Guggenheim BulletShr 2018 BSCI 1.6 .0291 M Feb07 /Feb03 iSh U.S. Treasury Bd GOVT 1.2 .0253 M Feb07 /Feb03 SPDR BofA ML CrsOvCp CJNK 4.3 .09354 M Feb09 /Feb03
Exelon EXC 3.7 .3275 /.318 Q Mar10 /Feb15 Guggenheim BulletShr 2019 BSCJ 1.9 .0343 M Feb07 /Feb03 iSh US Fixed Incm Bal FIBR 3.0 .25129 M Feb07 /Feb03 SPDR Dorsey Wright Fixed DWFI 2.6 .05293 M Feb09 /Feb03
German American Bancorp GABC 1.6 .19 /.18 Q Feb20 /Feb10 Guggenheim BulletShs 2020 BSCK 2.4 .0417 M Feb07 /Feb03 iShares $ HY xOil & Gas HYXE 5.9 .25229 M Feb07 /Feb03 SPDR DoubleLine EM Fixed EMTL 3.1 .12831 M Feb09 /Feb03
Healthcare Services Group HCSG 1.9 .1863 /.185 Q Mar24 /Feb17 Guggenheim Bulletshs 2021 BSCL 2.5 .0446 M Feb07 /Feb03 iShares 0-5Y Inv Grd Cp SLQD 1.9 .08115 M Feb07 /Feb03 SPDR DoubleLine Sh Dur TR STOT 2.1 .08727 M Feb09 /Feb03
Macatawa Bank MCBC 1.6 .04 /.03 Q Feb28 /Feb13 Guggenheim BulletShs 2022 BSCM 2.8 .049 M Feb07 /Feb03 iShares 10+Y Credit Bond CLY 4.2 .20726 M Feb07 /Feb03 SPDR DoubleLine TR Tact TOTL 3.6 .14433 M Feb09 /Feb03
Neenah Paper NP 1.8 .37 /.33 Q Mar02 /Feb17 Guggenheim BulletShs 2023 BSCN 3.0 .0521 M Feb07 /Feb03 iShares 1-3Y Credit Bond CSJ 1.5 .13363 M Feb07 /Feb03 SPDR Nuv S&P Hi Yd Mun Bd HYMB 4.2 .19551 M Feb09 /Feb03
PPL Corp PPL 4.5 .395 /.38 Q Apr03 /Mar10 Guggenheim BulletShs 2024 BSCO 3.5 .0591 M Feb07 /Feb03 iShares 1-3Y Treasury Bd SHY 0.7 .05099 M Feb07 /Feb03 SPDR Nuveen Muni Bd TFI 2.2 .08669 M Feb09 /Feb03
Simon Property Group SPG 3.9 1.75 /1.65 Q Feb28 /Feb14 Guggenheim BulletShs 2025 BSCP 3.4 .0577 M Feb07 /Feb03 iShares 20+Y Treasury Bd TLT 2.6 .25916 M Feb07 /Feb03 SPDR Nuveen ST Muni Bd SHM 1.0 .03863 M Feb09 /Feb03
Sotherly Hotels SOHO 5.7 .10 /.095 Q Apr11 /Mar15 Guggenheim BulletShs 2026 BSCQ 3.2 .0511 M Feb07 /Feb03 iShares 3-7Y Treasury Bd IEI 1.4 .14099 M Feb07 /Feb03 SPDR SSgA Ultra Shrt ULST 1.1 .03527 M Feb09 /Feb03
Standard Motor Products SMP 1.5 .19 /.17 Q Mar01 /Feb15 Guggenheim Enh Short GSY 1.4 .0593 M Feb07 /Feb03 iShares Agency Bond ETF AGZ 1.4 .13217 M Feb07 /Feb03 VanEck AMT-Fr Interm Muni ITM 2.3 .0453 M Feb07 /Feb03
Western Refining Logistic WNRL 7.2 .4375 /.4225 Q Mar01 /Feb13 Guggenheim TR Bd GTO 3.8 .1619 M Feb07 /Feb03 iShares CMBS ETF CMBS 2.4 .10217 M Feb07 /Feb03 VanEck AMT-Fr Lg Mun MLN 3.2 .0513 M Feb07 /Feb03
WVS Financial WVFC 1.6 .06 /.04 Q Feb23 /Feb13 iSh 0-5Y Hi Yd Corp Bd SHYG 5.8 .23046 M Feb07 /Feb03 iShares Core 10+Y USD Bd ILTB 4.0 .20295 M Feb07 /Feb03 VanEck AMT-Fr Sh Muni SMB 1.2 .017 M Feb07 /Feb03
iSh 10-20Y Treasury Bond TLH 1.8 .19949 M Feb07 /Feb03 iShares Core 1-5Y USD Bd ISTB 2.0 .08508 M Feb07 /Feb03 VanEck AMT-Free 12-17Y ITML 2.2 .0427 M Feb07 /Feb03
Reduced iSh 7-10Y Treasury Bond IEF 1.8 .15928 M Feb07 /Feb03 iShares Floating Rate Bd FLOT 1.2 .05223 M Feb07 /Feb03 VanEck AMT-Free 6-8Y ITMS 1.5 .0299 M Feb07 /Feb03
Eaton Vance Global Income EVGBC 0.5 .0411 /.0902 M Feb07 /Feb03 iSh AAA-A Rated Corp Bd QLTA 2.7 .11482 M Feb07 /Feb03 iShares GNMA Bond ETF GNMA 1.8 .07437 M Feb07 /Feb03 VanEck Fallen Angel HY Bd ANGL 5.0 .121 M Feb07 /Feb03
iSh California Muni Bd CMF 2.1 .20409 M Feb07 /Feb03 iShares Govt/Credit Bond GBF 2.1 .19949 M Feb07 /Feb03 VanEck Pre-Refunded Muni PRB 1.0 .0207 M Feb07 /Feb03
Initial
iSh Convertible Bd ICVT 1.9 .08015 M Feb07 /Feb03 iShares iBoxx $ HY Cp Bd HYG 5.3 .38219 M Feb07 /Feb03 VanEck Vctr JPM EM LC Bd EMLC 5.4 .08 M Feb07 /Feb03
Colony NorthStar Pfd. A CLNSpA .54688 Feb15 /Feb10
iSh Core 5-10 Year USD Bd IMTB 2.4 .09917 M Feb07 /Feb03 iShares JPM USD Emg Bd EMB 4.8 .44222 M Feb07 /Feb03 VanEck Vctr Pfd Secs xFin PFXF 4.2 .069 M Feb07 /Feb03
Colony NorthStar Pfd. B CLNSpB .51563 Feb15 /Feb10
iSh Core Total USD Bd Mkt IUSB 2.7 .11175 M Feb07 /Feb03 iShares MBS ETF MBB 2.2 .19277 M Feb07 /Feb03 VanEck Vctr Trea-Hd HY Bd THHY 4.8 .0957 M Feb07 /Feb03
Colony NorthStar Pfd. C CLNSpC .55469 Feb15 /Feb10
iSh Core US Aggregate Bd AGG 2.4 .21805 M Feb07 /Feb03 iShares US Preferred PFF 6.1 .19144 M Feb07 /Feb03 VanEck Vectors CEF Muni XMPT 5.0 .11 M Feb07 /Feb03
Colony NorthStar Pfd. D CLNSpD .53125 Feb15 /Feb10
iSh Em Mkts Corp Bd Fd CEMB 4.1 .17318 M Feb07 /Feb03 iShrs Emg Mkt Hi Yd Bd Fd EMHY 5.7 .2321 M Feb07 /Feb03 VanEck Vectors China Bond CBON 3.2 .0596 M Feb07 /Feb03
Colony NorthStar Pfd. E CLNSpE .54688 Feb15 /Feb10
iSh Fallen Angels USD Bd FALN 6.0 .13715 M Feb07 /Feb03 iShrs Globl xUSD HY Cp Bd HYXU 1.4 .05394 M Feb07 /Feb03 VanEck Vectors EM Agg Bd EMAG 4.8 .0822 M Feb07 /Feb03
Funds and investment companies iSh Glbl Hi Corp Bd Fd GHYG 3.9 .16117 M Feb07 /Feb03 Ivy High Income Opps Fund IVH 9.6 .12 M Feb28 /Feb13 VanEck Vectors EM HY Bond HYEM 5.5 .111 M Feb07 /Feb03
BulletShares 2017 CB BSCH 1.4 .0272 M Feb07 /Feb03 iSh iBds Mar2018 Cp xFin IBCC 1.3 .02621 M Feb07 /Feb03 Janus Short Duration Incm VNLA 0.6 .0254 M Feb07 /Feb03 VanEck Vectors HY Muni HYD 4.7 .1165 M Feb07 /Feb03
Calamos CHI 10.6 .095 M Feb15 /Feb10 iSh iBds Mar2020 Cp xFin IBCD 1.9 .03818 M Feb07 /Feb03 MV EM Inv Grade + BB IGEM 3.1 .0626 M Feb07 /Feb03 VanEck Vectors Intl HY Bd IHY 5.3 .108 M Feb07 /Feb03
Calamos Conv Hi Inco Fd CHY 10.8 .10 M Feb15 /Feb10 iSh iBds Mar2023 Cp xFin IBCE 2.7 .05541 M Feb07 /Feb03 Neuberger Berman HYS NHS 8.0 .08 M Feb28 /Feb15 VanEck Vectors Invt Gr FR FLTR 1.5 .0309 M Feb07 /Feb03
Calamos Dyn Conv & Incm CCD 10.6 .167 M Feb15 /Feb10 iSh iBonds Dec 2017 Corp IBDJ 1.2 .02532 M Feb07 /Feb03 Neubrgr Brm Rl Est Sec Fd NRO 9.2 .04 M Feb28 /Feb15 VanEck Vectors Sh HY Muni SHYD 3.1 .0612 M Feb07 /Feb03
Calamos Glbl Dyn Inc CHW 11.3 .07 M Feb15 /Feb10 iSh iBonds Dec 2018 Corp IBDH 1.5 .03242 M Feb07 /Feb03 NuShares Enh Yield US Bd NUAG 3.1 .0626 M Feb07 /Feb03 Vangrd Intermed-Trm Cp Bd VCIT 2.8 .199 M Feb07 /Feb03
Calamos Global Tot Ret Fd CGO 10.7 .10 M Feb15 /Feb10 iSh iBonds Dec 2019 Corp IBDK 1.9 .03993 M Feb07 /Feb03 PIMCO 0-5 Hi Yd Corp HYS 5.5 .463 M Feb07 /Feb03 Vangrd Intrmd -Trm Gvt Bd VGIT 1.3 .072 M Feb07 /Feb03
Calamos Strat Fd CSQ 9.2 .0825 M Feb15 /Feb10 iSh iBonds Dec 2020 Corp IBDL 2.2 .04743 M Feb07 /Feb03 PIMCO 1-3 US Trea Idx TUZ 0.8 .035 M Feb07 /Feb03 Vanguard Emg Mkts Govt Bd VWOB 4.2 .273 M Feb07 /Feb03
Columbia Core Bond ETF GMTB 1.4 .05781 M Feb07 /Feb03 iSh iBonds Dec 2021 Corp IBDM 2.5 .05167 M Feb07 /Feb03 PIMCO Divers Incm Active DI 3.6 .15 M Feb07 /Feb03 Vanguard Intermed-Term Bd BIV 2.6 .1784 M Feb07 /Feb03
Columbia Inter Mun Bd GMMB 2.8 .12247 M Feb07 /Feb03 iSh iBonds Dec 2021 Muni IBMJ 1.2 .02578 M Feb07 /Feb03 PIMCO Enh Shrt Maturity MINT 1.6 .133 M Feb07 /Feb03 Vanguard Lg-Term Govt Bd VGLT 2.4 .149 M Feb07 /Feb03
CurrencyShares AUD Tr FXA 1.0 .06128 M Feb08 /Feb03 iSh iBonds Dec 2022 Corp IBDN 2.9 .05933 M Feb07 /Feb03 PIMCO Intermediate Mun Bd MUNI 2.4 .105 M Feb07 /Feb03 Vanguard Long-Term Bd BLV 3.9 .28869 M Feb07 /Feb03
DBX Emerging Markets Bd EMIH 5.5 .11269 M Feb07 /Feb03 iSh iBonds Dec 2022 Muni IBMK 1.4 .03048 M Feb07 /Feb03 PIMCO Inv Grade Corp Bd CORP 3.2 .277 M Feb07 /Feb03 Vanguard Long-Trm Crp Bd VCLT 3.7 .27 M Feb07 /Feb03
DBX High Yield Corp Bd HYIH 5.6 .1092 M Feb07 /Feb03 iSh iBonds Dec 2023 Corp IBDO 3.0 .06299 M Feb07 /Feb03 PIMCO Low Duration Active LDUR 1.7 .145 M Feb07 /Feb03 Vanguard MBS VMBS 1.7 .072 M Feb07 /Feb03
DBX Investment Grade Bd IGIH 3.6 .07137 M Feb07 /Feb03 iSh iBonds Dec 2024 Corp IBDP 3.3 .0667 M Feb07 /Feb03 PIMCO Short Term Mun Bd SMMU 1.3 .054 M Feb07 /Feb03 Vanguard Short Tm Govt Bd VGSH 0.6 .032 M Feb07 /Feb03
Deutsche X Bar Intl Cp Bd IFIX 2.6 .10664 M Feb07 /Feb03 iSh iBonds Dec 2025 Corp IBDQ 3.5 .07043 M Feb07 /Feb03 PIMCO TR Active BOND 4.1 .25 M Feb07 /Feb03 Vanguard Short-Term Bond BSV 1.5 .09836 M Feb07 /Feb03
Deutsche X Intl Trea Bd IGVT 2.5 .10277 M Feb07 /Feb03 iSh iBonds Dec 2026 Corp IBDR 3.8 .07574 M Feb07 /Feb03 Principal EDGE Active YLD 4.9 .16742 M Feb07 /Feb03 Vanguard Shrt-Trm Crp Bnd VCSH 1.8 .119 M Feb07 /Feb03
Deutsche X Muni Rev Bd RVNU 2.5 .05453 M Feb07 /Feb03 iSh iBonds Mar 2018 Corp IBDB 1.5 .03098 M Feb07 /Feb03 ProSh Short USD Emg Bd EMSH 3.8 .24567 M Feb07 /Feb03 Vanguard Tax-Exempt Bd VTEB 1.7 .073 M Feb07 /Feb03
Deutsche X USD Hi Yld HYLB 6.1 .26034 M Feb07 /Feb03 iSh iBonds Mar 2020 Corp IBDC 2.1 .0468 M Feb07 /Feb03 ProShares HY-Interest Rt HYHG 4.8 .27894 M Feb09 /Feb03 Vanguard Total Bond Mkt BND 2.5 .16802 M Feb07 /Feb03
Flex Credit-Scored US Lg LKOR 4.1 .173 M Feb07 /Feb03 iSh iBonds Mar 2023 Corp IBDD 3.0 .06524 M Feb07 /Feb03 ProShares Inv Grade Int IGHG 3.3 .21002 M Feb07 /Feb03 Vanguard Total Intl Bd BNDX 1.0 .045 M Feb07 /Feb03
FlexShares Discip Dur MBS MBSD 3.0 .0608 M Feb07 /Feb03 iSh iBonds Sep 2017 Muni IBMF 0.9 .02086 M Feb07 /Feb03 ProShares USD Covered Bd COBO 1.6 .13122 M Feb09 /Feb03 Vanguard Total Intl Bd BNDX 1.0 .045 M Feb07 /Feb03
FlexShares Ready Access RAVI 1.1 .06829 M Feb07 /Feb03 iSh iBonds Sep 2018 Muni IBMG 0.9 .0191 M Feb07 /Feb03 Schwab Intm US Trsr SCHR 1.6 .0709 M Feb07 /Feb03 Voya Prime Rate Trust PPR 5.8 .027 M Feb22 /Feb10
FlexShs Credit-Scored US SKOR 2.3 .09773 M Feb07 /Feb03 iSh iBonds Sep 2019 Muni IBMH 1.0 .02224 M Feb07 /Feb03 Schwab Short Trm US Trsr SCHO 1.0 .0426 M Feb07 /Feb03
iSh iBonds Sep 2020 Muni IBMI 1.2 .02493 M Feb07 /Feb03 Schwab US Aggregate Bond SCHZ 2.5 .1063 M Feb07 /Feb03 Foreign
Gl X MSCI SuperDivi EFAS 4.2 .0565 M Feb10 /Feb03
iSh iBoxx $ Invt Gr Cp Bd LQD 3.2 .31582 M Feb07 /Feb03 SPDR Blackstone Sr Loan SRLN 3.9 .155 M Feb09 /Feb03 CNH Industrial CNHI 1.3 .11752 A /
Gl X SuperDiv EM SDEM 4.3 .055 M Feb10 /Feb03
iSh Interm Govt/Credit Bd GVI 1.8 .16818 M Feb07 /Feb03 SPDR Bloomberg 1-3M TBill BIL 0.3 .01256 M Feb09 /Feb03 Imperial Oil IMO 1.4 .11456 Q Apr01 /Mar03
Gl X SuperDivid Alt ALTY 7.8 .099 M Feb10 /Feb03
Gl X SuperDividend REIT SRET 7.7 .0935 M Feb10 /Feb03 iSh Intermediate Cred Bd CIU 2.5 .22514 M Feb07 /Feb03 SPDR Bloomberg Agg Bd BNDS 2.6 .1225 M Feb09 /Feb03 Special
Gl X SuperDividend US DIV 6.5 .1355 M Feb10 /Feb03 iSh Intl Aggregate Bd IAGG 0.4 .01717 M Feb07 /Feb03 SPDR Bloomberg Conv Secs CWB 1.8 .07025 M Feb09 /Feb03 Tilly's TLYS .70 Feb24 /Feb15
Gl X SuperIncome Pfd SPFF 6.7 .0725 M Feb10 /Feb03 iSh Intl Preferred Stock IPFF 5.1 .07137 M Feb07 /Feb03 SPDR Bloomberg HY Bd JNK 5.7 .17511 M Feb09 /Feb03
Global X SuperDividend SDIV 6.8 .1205 M Feb10 /Feb03 iSh Intl Treasury Bd IGOV 0.3 .02179 M Feb07 /Feb03 SPDR Bloomberg Int Cp Bd ITR 2.6 .07427 M Feb09 /Feb03
Goldman Sachs Trea 0-1Y GBIL 0.3 .02521 M Feb07 /Feb03 iSh Liquidity Incm ICSH 1.3 .05425 M Feb07 /Feb03 SPDR Bloomberg Interm Tr ITE 1.3 .06524 M Feb09 /Feb03 KEY: A: annual; c: corrected; M: monthly; Q: quarterly; r: revised; SA:
Guggenheim BS 2017 HY BSJH 3.5 .0747 M Feb07 /Feb03 iSh Natl AMT-Free Muni Bd MUB 2.3 .20637 M Feb07 /Feb03 SPDR Bloomberg Inv Grd FR FLRN 1.3 .03343 M Feb09 /Feb03 semiannual; S2:1: stock split and ratio; SO: spin-off.
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B8 | Thursday, February 2, 2017 THE WALL STREET JOURNAL.

MARKETS DIGEST
EQUITIES

Dow Jones Industrial Average S&P 500 Index Nasdaq Composite Index
Last Year ago Last Year ago Last Year ago
19890.94 s 26.85, or 0.14% Trailing P/E ratio * 20.16 16.99 2279.55 s 0.68, or 0.03% Trailing P/E ratio * 24.74 20.93 5642.65 s 27.86, or 0.50% Trailing P/E ratio * 20.10 21.15
High, low, open and close for each P/E estimate * 17.50 15.07 High, low, open and close for each P/E estimate * 17.52 15.89 High, low, open and close for each P/E estimate * 19.15 17.10
trading day of the past three months. Dividend yield 2.41 2.73 trading day of the past three months. Dividend yield 2.12 2.32 trading day of the past three months. Dividend yield 1.16 1.27
All-time high 20100.91, 01/26/17 All-time high: 2298.37, 01/25/17 All-time high: 5660.78, 01/27/17

Current divisor 0.14602128057775

20000 2310 5660

19600 2270 5550

65-day moving average

19200 2230 5440

18800 2190 5330

Session high
DOWN UP 18400 2150 5220
t

Session open Close

Close Open 65-day moving average

t

18000 2110 65-day moving average 5110

Session low
Bars measure the point change from session's open
17600 2070 5000
Oct. Nov. Dec. Jan. Oct. Nov. Dec. Jan. Oct. Nov. Dec. Jan.
* P/E data based on as-reported earnings from Birinyi Associates Inc.

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

Latest 52-Week % chg Most-active and biggest movers among NYSE, NYSE Arca, NYSE MKT Volume, Advancers, Decliners
High Low Close Net chg % chg High Low % chg YTD 3-yr. ann. and Nasdaq issues from 4 p.m. to 6:30 p.m. ET as reported by electronic NYSE NYSE MKT
Dow Jones trading services, securities dealers and regional exchanges. Minimum Total volume* 902,798,349 11,652,685
Industrial Average 19967.73 19845.99 19890.94 26.85 0.14 20100.91 15660.18 21.8 0.6 8.2 share price of $2 and minimum after-hours volume of 5,000 shares. Adv. volume* 386,479,339 6,122,397
Transportation Avg 9236.71 9096.19 9171.39 -20.59 -0.22 9468.77 6834.76 34.2 1.4 8.0 Most-active issues in late trading Decl. volume* 495,029,494 5,065,908
Utility Average 663.92 654.14 656.08 -12.79 -1.91 723.51 610.87 4.7 -0.5 9.0 Volume After Hours Issues traded 3,098 334
Company Symbol (000) Last Net chg % chg High Low Advances 1,442 142
Total Stock Market 23824.82 23634.37 23706.39 0.25 0.001 23922.90 18663.11 21.1 1.8 8.1
Facebook Cl A FB 12,246.7 134.33 1.10 0.83 137.99 130.95 Declines 1,536 162
Barron's 400 614.97 607.33 609.45 0.12 0.02 617.40 446.15 30.1 1.3 7.4
SPDR S&P 500 SPY 8,785.3 227.58 -0.04 -0.02 227.75 227.48 Unchanged 120 30
Nasdaq Stock Market LogMeIn LOGM 6,153.2 106.60 … unch. 108.10 106.01 New highs 153 9
Nasdaq Composite 5662.11 5621.03 5642.65 27.86 0.50 5660.78 4266.84 25.3 4.8 11.2 Triumph Group TGI 4,540.2 26.75 -0.65 -2.37 27.50 26.75 New lows 13 2
5162.46 5128.90 35.92 Closing tick 281 27
Nasdaq 100 5152.69 0.70 5168.06 3947.80 23.5 5.9 13.5 VanEck Vectors Gold Miner GDX 3,862.3 23.91 0.06 0.23 23.91 23.82
Closing Arms† 1.21 0.78
iShares MSCI Emg Markets EEM 3,741.6 37.48 0.12 0.32 37.48 37.03
Standard & Poor's Block trades* 6,510 162
iSh Core MSCI Emg Mkts IEMG 2,800.0 45.34 0.04 0.08 45.34 45.30
500 Index 2289.14 2272.44 2279.55 0.68 0.03 2298.37 1829.08 19.2 1.8 8.5 Nasdaq NYSE Arca
General Electric GE 2,532.8 29.69 … unch. 29.70 29.66
MidCap 400 1701.22 1676.89 1683.50 -3.69 -0.22 1710.29 1238.82 29.7 1.4 8.6 Total volume*2,210,832,535 318,332,241
SmallCap 600 841.95 829.84 832.48 -1.72 -0.21 857.50 588.26 35.0 -0.7 9.2 Percentage gainers… Adv. volume*1,126,439,551 179,012,197
Decl. volume*1,033,654,022 137,597,472
Other Indexes Mead Johnson Nutrition MJN 37.6 82.20 12.70 18.27 84.00 69.50
Issues traded 3,020 1,350
Russell 2000 1374.19 1357.49 1361.23 -0.60 -0.04 1388.07 953.72 34.7 0.3 6.4 Electro Scientific Inds ESIO 5.1 7.34 0.77 11.72 7.52 6.57
Advances 1,431 734
NYSE Composite 11259.89 11171.57 11207.24 -15.71 -0.14 11339.05 9029.88 18.0 1.4 4.0 Weatherford International WFT 1,611.0 5.50 0.32 6.18 5.60 5.15 Declines 1,424 587
Value Line 516.12 510.65 512.34 -0.68 -0.13 520.17 383.82 26.2 1.2 2.7 Brooks Automation BRKS 7.5 18.45 0.76 4.30 18.50 17.64 Unchanged 165 29
NYSE Arca Biotech 3273.44 3231.00 3270.82 20.25 0.62 3477.87 2642.53 16.9 6.4 8.9
Axcelis Technologies ACLS 19.9 16.30 0.65 4.15 16.50 15.65 New highs 139 33
New lows 31 10
NYSE Arca Pharma 482.45 477.71 482.34 2.47 0.51 554.66 463.78 -4.0 0.2 1.0 ...And losers
Closing tick 312 74
KBW Bank 93.00 91.48 91.69 0.28 0.31 93.71 56.51 49.5 -0.1 10.8 Shutterfly SFLY 399.4 42.11 -9.66 -18.66 51.77 42.11 Closing Arms† 0.92 1.04
PHLX§ Gold/Silver 92.10 90.13 91.75 -0.003 0.003 112.86 50.02 83.4 16.3 0.4 NIC EGOV 6.2 20.00 -4.00 -16.67 24.10 20.00 Block trades* 8,405 1,597
PHLX§ Oil Service 182.39 178.08 180.37 0.12 0.07 192.66 129.55 28.9 -1.9 -11.9 Mellanox Techs MLNX 464.4 39.00 -7.80 -16.67 46.95 39.00 * Primary market NYSE, NYSE MKT NYSE Arca only.
PHLX§ Semiconductor 960.11 949.91 960.11 15.83 1.68 962.26 559.18 60.8 5.9 22.0 PIMCO HiInco PHK 149.8 8.78 -1.15 -11.58 9.90 8.75 †(TRIN) A comparison of the number of advancing and declining
CBOE Volatility 12.05 9.97 -0.18 28.14 10.58 -45.5 -15.9 -13.8 issues with the volume of shares rising and falling. An
11.81 -1.50 Civeo CVEO 40.0 3.19 -0.41 -11.39 3.47 3.10 Arms of less than 1 indicates buying demand; above 1

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

International Stock Indexes Percentage Gainers... Percentage Losers

Latest YTD
Region/Country Index Close Net chg % chg % chg Latest Session 52-Week Latest Session 52-Week
Company Symbol Close Net chg % chg High Low % chg Company Symbol Close Net chg % chg High Low % chg
World The Global Dow 2602.88 5.13 0.20 2.8 Pulmatrix PULM 3.73 1.58 73.49 4.40 0.50 33.2 Catabasis Pharmaceuticals CATB 1.18 -2.86 -70.79 8.15 1.08 -80.5
The Global Dow Euro 2277.97 14.59 0.64 0.8 EnteroMedics ETRM 8.38 2.09 33.23 132.30 1.75 -88.7 Real Goods Solar Cl A RGSE 2.93 -0.94 -24.29 528.00 2.90 -99.0
DJ Global Index 335.24 0.34 0.10 2.8 Infinity Pharmaceuticals INFI 2.51 0.44 21.26 6.97 0.84 -57.2 Bovie Medical BVX 2.98 -0.80 -21.16 5.75 1.56 39.9
World DJ Global ex U.S. 221.97 0.44 0.20 3.8 Wins Finance Holdings WINS 290.75 48.57 20.06 294.00 9.00 2281.0 Pitney Bowes PBI 13.14 -2.78 -17.46 21.81 12.41 -23.3
Americas DJ Americas 552.07 –0.02 –0.003 2.2 ONEOK Partners OKS 51.70 8.56 19.84 57.41 22.00 85.7 The Bancorp TBBK 5.00 -0.99 -16.53 8.20 3.88 10.6
Brazil Sao Paulo Bovespa 64836.13 165.34 0.26 7.7 Ferroglobe GSM 12.25 1.74 16.56 12.53 6.90 43.1 Black Box BBOX 11.15 -2.20 -16.48 17.05 7.45 40.8
Canada S&P/TSX Comp 15402.39 16.43 0.11 0.8 Advanced Micro Devices AMD 12.06 1.69 16.30 12.42 1.81 482.6 Synergy Pharmaceuticals SGYP 6.04 -1.03 -14.57 7.15 2.50 64.6
Mexico IPC All-Share 47009.51 8.45 0.02 3.0 Art's Way Mfg ARTW 3.65 0.50 15.87 4.70 2.50 25.9 Seaspan SSW 8.22 -1.38 -14.38 20.00 8.08 -49.8
Chile Santiago IPSA 3253.92 3.64 0.11 1.0 Wabash National WNC 20.20 2.55 14.45 20.64 10.50 81.2 Sifco Industries SIF 7.35 -1.00 -11.98 11.75 6.25 -4.5
0.86 Summit Therapeutics ADR SMMT 11.93 1.46 13.94 19.75 4.26 48.4 Cameco Corp CCJ 11.27 -1.48 -11.61 13.59 7.41 -7.8
Europe Stoxx Europe 600 363.20 3.08 0.5
Euro zone Euro Stoxx 349.35 2.82 0.81 –0.3 Psychemedics PMD 21.33 2.46 13.04 27.46 9.70 117.7 NII Holdings NIHD 2.50 -0.33 -11.50 5.72 1.60 -32.6
Belgium Bel-20 3575.20 32.93 0.93 –0.9 Kingtone Wirelessinfo ADR KONE 4.68 0.53 12.77 13.85 1.15 112.7 Yuma Energy YUMA 2.47 -0.28 -10.18 7.40 0.05 -38.3
France CAC 40 4794.58 45.68 0.96 –1.4 Social Reality Cl A SRAX 3.21 0.35 12.08 9.40 2.46 -54.5 Destination XL Group DXLG 3.20 -0.35 -9.86 5.88 3.15 -27.6
Germany DAX 11659.50 124.19 1.08 1.6 Esperion Therapeutics ESPR 13.58 1.46 12.05 20.19 9.40 -11.1 MYOS RENS Technology MYOS 2.52 -0.27 -9.68 6.98 1.02 62.6
0.79 –3.5 Olin Corp OLN 29.33 3.12 11.90 30.00 12.29 114.1 JW Mays MAYS 39.00 -4.00 -9.30 57.87 39.00 -29.1
Israel Tel Aviv 1419.36 11.07
Italy FTSE MIB 18740.65 149.92 0.81 –2.6
Netherlands AEX 479.65 2.94 0.62 –0.7 Most Active Stocks Volume Movers Ranked by change from 65-day average*
Spain IBEX 35 9330.80 15.60 0.17 –0.2
0.76 Volume % chg from Latest Session 52-Week Volume % chg from Latest Session 52-Week
Sweden SX All Share 545.58 4.10 2.1 Company Symbol (000) 65-day avg Close % chg High Low Company Symbol (000) 65-day avg Close % chg High Low
Switzerland Swiss Market 8329.17 37.48 0.45 1.3
Advanced Micro Devices AMD 165,253 237.5 12.06 16.30 12.42 1.81 First Hawaiian FHB 13,016 4729 31.65 -4.06 35.47 23.00
U.K. FTSE 100 7107.65 8.50 0.12 –0.5
Apple AAPL 110,569 260.7 128.75 6.10 130.49 89.47 Milacron Holdings MCRN 4,441 3081 16.42 -0.73 19.32 11.56
Asia-Pacific DJ Asia-Pacific TSM 1490.72 0.78 0.05 4.8 DryShips DRYS 104,977 1574.3 4.62 -8.51 2227.20 1.97 ONEOK Partners OKS 19,089 2793 51.70 19.84 57.41 22.00
Australia S&P/ASX 200 5653.20 32.30 0.57 –0.2 Bank of America BAC 103,001 -13.8 22.89 1.10 23.55 10.99 Fidelity MSCI Real Est FREL 3,010 2239 23.18 -1.11 25.98 19.85
China Shanghai Composite 3159.17 … Closed 1.8 Finl Select Sector SPDR XLF 71,242 -11.4 23.34 0.13 23.87 15.86 SPDR S&P Telecom XTL 434 2071 70.41 -0.70 73.23 47.03
Hong Kong Hang Seng 23318.39 –42.39 –0.18 6.0 SPDR S&P 500 SPY 70,186 -19.4 227.62 0.04 229.71 181.09 LogMeIn LOGM 6,917 1812 106.60 -1.39 110.10 35.00
India S&P BSE Sensex 28141.64 485.68 1.76 5.7 VanEck Vectors Gold Miner GDX 52,485 -35.9 23.85 -0.33 31.79 14.42 Taylor Morrison Home TMHC 6,671 1768 18.69 -3.66 21.80 10.33
Japan Nikkei Stock Avg 19148.08 106.74 0.56 0.2 DXN DLY GLDMNR 3x BL NUGT 51,065 -2.1 11.00 -0.72 35.80 5.37 Overstock.com OSTK 1,050 1734 17.50 5.42 20.50 10.25
Singapore Straits Times 3067.49 20.69 0.68 6.5 Rite Aid RAD 50,926 128.6 5.27 -6.23 8.77 5.26 DryShips DRYS 104,977 1574 4.62 -8.51 2227.20 1.97
South Korea Kospi 2080.48 12.91 0.62 2.7 iShares MSCI Emg Markets EEM 50,580 -20.3 37.36 0.05 38.32 28.60 iSh MSCI Emg Mkts Asia EEMA 715 1541 56.59 0.35 58.56 44.47
Taiwan Weighted 9447.95 … Closed 2.1 * Volumes of 100,000 shares or more are rounded to the nearest thousand * Common stocks priced at $5 a share or more with an average volume over 65 trading days of at least
Sources: SIX Financial Information; WSJ Market Data Group 5,000 shares =Has traded fewer than 65 days

CREDIT MARKETS Currencies CURRENCIES

U.S.-dollar foreign-exchange rates in late New York trading
Consumer Rates and Returns to Investor Benchmark
Treasury Yields
yield curve Forex Race US$vs, US$vs,
andtoRates
Yield maturity of current bills, Yen, euro vs. dollar; dollar vs. Country/currency
Wed YTDchg
in US$ per US$ (%) Country/currency
Wed YTDchg
in US$ per US$ (%)
U.S. consumer rates Selected rates notes and bonds major U.S. trading partners
Americas Thailand baht .02848 35.110 –2.0
A consumer rate against its New car loan Vietnam dong .00004415 22653 –0.5
5.00% Argentina peso .0633 15.7950 –0.5
benchmark over the past year 18% Brazil real .3195 3.1295 –3.9 Europe
Bankrate.com avg†: 3.14%
4.00 s Canada dollar .7663 1.3050 –2.9 Czech Rep. koruna .03985 25.091 –2.3
Think Mutual Bank 1.89% 12
Chile peso .001548 646.20 Denmark krone .1448 6.9066
Yen –3.5 –2.3
4.00% Rochester, MN 800-288-3425 .0003445 2902.60 1.0769 .9286
3.00 6 Euro Colombia peso –3.3 Euro area euro –2.3
Prime rate s
First Savings Bank of Hegewisch 1.99% Ecuador US dollar 1 1 unch Hungary forint .003481 287.25 –2.4
t 3.50 Wednesday 2.00
t

Chicago, IL 773-646-4200 0 Mexico peso .0483 20.7102 –0.1 Iceland krona .008681 115.20 2.0
Peru new sol .3058 3.271 –2.5 Norway krone .1215 8.2330 –4.8
3.00 Lake Elmo Bank 1.99% 1.00 –6 Uruguay peso .03551 28.1600 –4.1 Poland zloty .2501 3.9980 –4.5
t
One year ago s
t

Lake Elmo, MN 651-777-8365 Venezuela b. fuerte .100050 9.9951 unch Russia ruble .01663 60.149 –1.8
New car loan 0.00 WSJ Dollar index
2.50 TrustCo Bank 2.12% –12 Asia-Pacific Sweden krona .1143 8.7520 –3.9
1 3 6 1 2 3 5 710 30 2016 2017 Switzerland franc 1.0069 .9931 –2.5
Albany, NY 518-436-9043 Australian dollar .7585 1.3184 –5.0
2.00 month(s) years Turkey lira .2652 3.7705 7.0
First Citizens Bank 2.19% China yuan .1453 6.8820 –0.9
F MAM J J A S O N D JF maturity Ukraine hryvnia .0371 26.9250 –0.6
Hong Kong dollar .1289 7.7598 0.1
2016 2017 Raleigh, NC 800-367-0995 UK pound 1.2658 .7900 –2.5
India rupee .01485 67.334 –0.9
Sources: Ryan ALM; Tullett Prebon; WSJ Market Data Group Middle East/Africa
Indonesia rupiah .0000747 13380 –1.1
Yield/Rate (%) 52-Week Range (%) 3-yr chg Japan yen .008830 113.25 –3.2 Bahrain dinar 2.6532 .3769 –0.1
Interest rate Last (l)Week ago Low 0 2 4 6 8 High (pct pts)
Kazakhstan tenge .003079 324.74 –2.7 Egypt pound .0531 18.8410 3.9
Federal-funds rate target 0.50-.75 0.50-.75 0.25 l 0.75 0.50 Corporate Borrowing Rates and Yields Macau pataca .1257 7.9565 0.5 Israel shekel .2649 3.7748 –1.9
Malaysia ringgit .2257 4.4300 –1.2 Kuwait dinar 3.2811 .3048 –0.3
Prime rate* 3.75 3.75 3.50 l 3.75 0.50 Yield (%) 52-Week Total Return (%)
Bond total return index Close Last Week ago High Low 52-wk 3-yr New Zealand dollar .7280 1.3736 –4.9 Oman sul rial 2.5974 .3850 0.01
Libor, 3-month 1.03 1.04 0.62 l 1.04 0.80 Pakistan rupee .00955 104.750 0.4 Qatar rial .2746 3.641 0.03
Money market, annual yield 0.32 0.27 0.22 l 0.32 -0.09 Treasury, Ryan ALM 1424.995 2.067 2.118 2.186 1.141 –1.799 2.673 Philippines peso .0201 49.841 0.5 Saudi Arabia riyal .2666 3.7504 –0.01
Five-year CD, annual yield 1.22 1.22 1.17 l 1.33 -0.11 10-yr Treasury, Ryan ALM 1688.107 2.466 2.523 2.600 1.366 –7.080 2.868 Singapore dollar .7078 1.4129 –2.4 South Africa rand .0742 13.4718 –1.6
30-year mortgage, fixed† 4.16 4.15 3.43 l 4.29 -0.20 South Korea won .0008668 1153.72 –4.5
DJ Corporate 360.512 3.273 3.243 3.410 2.460 5.188 3.759 Close Net Chg % Chg YTD%Chg
Sri Lanka rupee .0066405 150.59 1.4
15-year mortgage, fixed† 3.36 3.35 2.70 l 3.50 -0.07 Aggregate, Barclays Capital 1877.580 2.640 2.670 2.770 1.820 1.548 2.549 Taiwan dollar .03197 31.279 –3.6 WSJ Dollar Index 90.58 0.10 0.11 –2.54
Jumbo mortgages, $424,100-plus† 4.51 4.52 4.02 l 4.88 -0.13 High Yield 100, Merrill Lynch 2723.596 5.526 5.424 8.635 5.248 17.012 3.518 Sources: Tullett Prebon, WSJ Market Data Group
Five-year adj mortgage (ARM)† 3.50 3.65 2.97 l 4.03 -0.10
Fixed-Rate MBS, Barclays 1934.860 2.910 2.980 3.070 1.930 0.324 2.475
New-car loan, 48-month 3.14 3.09 2.87 l 3.38 0.33
HELOC, $30,000 4.69 4.65 4.29 l 5.01 -0.58
Muni Master, Merrill 501.563 2.204 2.213 2.516 1.297 –0.853 3.015 COMMODITIES
Bankrate.com rates based on survey of over 4,800 online banks. *Base rate posted by 70% of the nation's largest EMBI Global, J.P. Morgan 750.193 5.910 5.944 6.994 5.134 12.417 6.476 Commodities Wednesday 52-Week YTD
banks.† Excludes closing costs. Pricing trends on someClose
raw materials, or commodities
Sources: SIX Financial Information; WSJ Market Data Group; Bankrate.com Sources: J.P. Morgan; Ryan ALM; S&P Dow Jones Indices; Barclays Capital; Merrill Lynch Net chg % Chg High Low % Chg % chg

DJ Commodity 579.02 5.81 1.01 580.38 432.69 30.42 2.07

ONLINE 194.34 1.20 195.82 18.36

WSJ
TR/CC CRB Index 2.30 155.01 0.95
Crude oil, $ per barrel 53.88 1.07 2.03 54.06 26.21 66.91 0.30
Real-time U.S. stock quotes are available on WSJ.com. Track most-active stocks, new highs/lows, mutual funds and ETFs. Natural gas, $/MMBtu 3.168 0.051 1.64 3.93 1.64 55.45 -14.93
.COM
Plus, get deeper money-flows data and email delivery of key stock-market data. All are available free at WSJMarkets.com Gold, $ per troy oz. 1205.60 -3.00 -0.25 1364.90 1127.80 5.63 4.83
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
THE WALL STREET JOURNAL. Thursday, February 2, 2017 | B9

COMMODITIES WSJ.com/commodities

Futures Contracts Open

Contract
High hilo Low Settle Chg
Open
interest
Cash Prices Wednesday, February 1, 2017
Metal & Petroleum Futures Coffee (ICE-US)-37,500 lbs.; cents per lb. These prices reflect buying and selling of a variety of actual or “physical” commodities in the marketplace—
Contract Open
March 149.55 151.70 147.55 150.15 .60 66,520 separate from the futures price on an exchange, which reflects what the commodity might be worth in future
May 151.90 154.00 150.00 152.55 .55 58,586
Open High hi lo Low Settle Chg interest
Sugar-World (ICE-US)-112,000 lbs.; cents per lb.
months.
Copper-High (CMX)-25,000 lbs.; $ per lb. March 20.50 20.88 20.45 20.84 .39 266,753 Wednesday Wednesday Wednesday
Feb 2.7180 2.7180 2.7030 2.7045 –0.0170 1,910 May 20.53 20.72 20.46 20.70 .24 182,293 Coins,wholesale $1,000 face-a 13698 Soybeans,No.1 yllw IL-bp,u 10.0650
March 2.7290 2.7380 s 2.7040 2.7115 –0.0160 148,492 Sugar-Domestic (ICE-US)-112,000 lbs.; cents per lb. Energy Wheat,Spring14%-pro Mnpls-u 6.5400
Gold (CMX)-100 troy oz.; $ per troy oz. Other metals
March 30.90 30.90 30.50 30.50 .32 1,271 Propane,tet,Mont Belvieu-g 0.8986 Wheat,No.2 soft red,St.Louis-bp,u 4.3150
Feb 1211.90 1211.90 1197.90 1205.60 –3.00 3,468
LBMA Platinum Price PM *991.0
July 30.69 30.70 s 30.69 30.70 .51 1,798 Butane,normal,Mont Belvieu-g 1.2809 Wheat - Hard - KC (USDA) $ per bu-u 3.8050
April 1212.20 1215.00 1199.70 1208.30 –3.10 271,136 Platinum,Engelhard industrial 996.0
Cotton (ICE-US)-50,000 lbs.; cents per lb. NaturalGas,HenryHub-i 3.120 Wheat,No.1soft white,Portld,OR-u 4.6888
June 1216.00 1216.90 1203.40 1211.30 –3.20 58,714 March 75.00 76.56 s 74.91 76.44 1.50 152,751
Platinum,Engelhard fabricated 1096.0
1219.60 1219.60 1205.80 1214.40 –3.30 16,033 NaturalGas,TranscoZone3-i 3.050 Palladium,Engelhard industrial 763.0
Aug May 75.57 77.14 s 75.56 77.05 1.45 60,752
NaturalGas,TranscoZone6NY-i 3.400
Food
Dec 1225.10 1225.80 1213.00 1220.70 –3.20 28,046 Orange Juice (ICE-US)-15,000 lbs.; cents per lb. Palladium,Engelhard fabricated 863.0
Feb'18 1224.40 1224.40 1224.40 1224.00 –3.20 4,398 March 173.00 174.40 168.85 171.35 –1.55 8,591
NaturalGas,PanhandleEast-i 2.930 Aluminum, LME, $ per metric ton *1820.5 Beef,carcass equiv. index
Palladium (NYM) - 50 troy oz.; $ per troy oz. May 169.55 170.70 165.70 167.85 –1.70 2,404 NaturalGas,Opal-i 2.930 Copper,Comex spot 2.7045 choice 1-3,600-900 lbs.-u 180.35
Feb 732.85 732.85 732.85 762.95 8.60 1 NaturalGas,MarcellusNE PA-i 2.830 Iron Ore, 62% Fe CFR China-s 82.4 select 1-3,600-900 lbs.-u 176.79
March 756.00 767.50 754.00 762.90 8.60 25,732 Interest Rate Futures NaturalGas,HaynesvilleN.LA-i 2.990 Broilers,dressed 'A'-u n.a.
Shredded Scrap, US Midwest-s,w 312
June 760.10 767.15 757.00 764.00 8.60 2,732 Coal,C.Aplc.,12500Btu,1.2SO2-r,w 50.000 Broilers, National comp wghtd-u,w 0.8336
Sept 763.75 763.75 763.75 764.00 8.80 22 Treasury Bonds (CBT)-$100,000; pts 32nds of 100% Steel, HRC USA, FOB Midwest Mill-s 629
Coal,PwdrRvrBsn,8800Btu,0.8SO2-r,w 11.800 Butter,AA Chicago 2.2400
Platinum (NYM)-50 troy oz.; $ per troy oz. March 150-220 150-230 149-230 150-140 –13.0 612,420 Fibers and Textiles Cheddar cheese,bbl,Chicago 157.75
Feb 978.80 979.10 978.80 996.30 3.30 42 June 149-060 149-130 148-160 149-060 –13.0 2,166 Metals Cheddar cheese,blk,Chicago 175.00
April 997.10 1003.90 994.50 999.80 3.30 59,296 Treasury Notes (CBT)-$100,000; pts 32nds of 100% Burlap,10-oz,40-inch NY yd-n,w 0.5700
124-145 124-150 123-290 124-105 –4.5 3,138,950 Gold, per troy oz Milk,Nonfat dry,Chicago lb. 94.75
Silver (CMX)-5,000 troy oz.; $ per troy oz. March Cotton,1 1/16 std lw-mdMphs-u 0.7594
Feb 17.450 17.590 s 17.450 17.420 –0.092 185 June 123-270 123-275 123-120 123-245 –4.5 36,338 Engelhard industrial 1207.70 Cocoa,Ivory Coast-w n.a.
Cotlook 'A' Index-t *83.50 Coffee,Brazilian,Comp 1.4721
March 17.570 17.665 s 17.360 17.450 –0.093 133,494 5 Yr. Treasury Notes (CBT)-$100,000; pts 32nds of 100% Engelhard fabricated 1298.28
Hides,hvy native steers piece fob-u 76.000 Coffee,Colombian, NY 1.6753
Crude Oil, Light Sweet (NYM)-1,000 bbls.; $ per bbl. March 117-272 117-275 117-152 117-252 –2.5 3,065,328 Handy & Harman base 1203.65
June 117-080 117-137 117-042 117-132 –2.7 61,980 Handy & Harman fabricated 1336.05
Wool,64s,staple,Terr del-u,w n.a. Eggs,large white,Chicago-u 0.7850
March 52.76 53.91 52.64 53.88 1.07 556,835
April 53.42 54.52 53.27 54.49 1.07 198,969 2 Yr. Treasury Notes (CBT)-$200,000; pts 32nds of 100% LBMA Gold Price AM *1198.80 Grains and Feeds Flour,hard winter KC 13.95
May 53.95 55.01 53.79 54.99 1.05 177,984 March 108-125 108-130 108-090 108-127 … 1,317,434 LBMA Gold Price PM *1212.80 Hams,17-20 lbs,Mid-US fob-u 0.61
June 54.36 55.43 54.21 55.41 1.03 269,013 June 108-000 108-002 107-317 108-032 … 4,419 Krugerrand,wholesale-e 1254.66 Barley,top-quality Mnpls-u n.a. Hogs,Iowa-So. Minnesota-u 67.62
Dec 55.28 56.17 55.15 56.15 0.82 215,529 30 Day Federal Funds (CBT)-$5,000,000; 100 - daily avg. Maple Leaf-e 1266.72 Bran,wheat middlings, KC-u 95 Pork bellies,12-14 lb MidUS-u n.a.
Dec'18 55.32 56.08 55.26 56.06 0.65 114,659 Feb 99.340 99.345 t 99.340 99.343 .002 85,750 American Eagle-e 1266.72 Corn,No. 2 yellow,Cent IL-bp,u 3.5100 Pork loins,13-19 lb MidUS-u 0.9170
NY Harbor ULSD (NYM)-42,000 gal.; $ per gal. April 99.280 99.300 t 99.265 99.295 .005 331,704 Mexican peso-e 1462.56 Corn gluten feed,Midwest-u,w 100.0 Steers,Tex.-Okla. Choice-u n.a.
March 1.6307 1.6750 1.6247 1.6740 .0432 132,444 10 Yr. Del. Int. Rate Swaps (CBT)-$100,000; pts 32nds of 100% Austria crown-e 1185.51 Corn gluten meal,Midwest-u,w 502.1 Steers,feeder,Okla. City-u,w 145.27
April 1.6378 1.6806 1.6323 1.6797 .0419 61,367 March 93.719 93.781 93.328 93.719 –.250 33,400
Austria phil-e 1266.72 Cottonseed meal-u,w 230
Gasoline-NY RBOB (NYM)-42,000 gal.; $ per gal. 1 Month Libor (CME)-$3,000,000; pts of 100% Hominy feed,Cent IL-u,w 80 Fats and Oils
March 1.5565 1.5858 1.5457 1.5791 .0290 156,678 Feb ... ... s ... 99.2200 … 4,896 Silver, troy oz.
Eurodollar (CME)-$1,000,000; pts of 100% Engelhard industrial 17.4500 Meat-bonemeal,50% pro Mnpls-u,w 288 Corn oil,crude wet/dry mill-u,w 38.0250
April 1.7769 1.8024 1.7683 1.7971 .0276 67,400
Natural Gas (NYM)-10,000 MMBtu.; $ per MMBtu. Feb 98.9525 98.9600 98.9450 98.9575 .0025 90,207 Engelhard fabricated 20.9400 Oats,No.2 milling,Mnpls-u 3.0325 Grease,choice white,Chicago-u 0.2750
March 3.134 3.228 3.113 3.168 .051 278,056 March 98.9200 98.9350 98.8950 98.9250 … 1,449,252 Handy & Harman base 17.4600 Rice, 5% Broken White, Thailand-l,w 357.00 Lard,Chicago-u n.a.
April 3.170 3.257 3.161 3.214 .049 116,654 June 98.7650 98.7650 98.7300 98.7600 –.0100 1,398,204 Handy & Harman fabricated 21.8250 Rice, Long Grain Milled, No. 2 AR-u,w 21.00 Soybean oil,crude;Centl IL-u 0.3266
May 3.218 3.292 3.210 3.254 .046 109,682 Dec 98.4950 98.4950 98.4400 98.4850 –.0150 1,373,438 LBMA spot price £13.9119 Sorghum,(Milo) No.2 Gulf-u 7.1125 Tallow,bleach;Chicago-u 0.3125
June 3.274 3.338 3.254 3.298 .039 65,123 (U.S.$ equivalent) 17.6000 SoybeanMeal,Cent IL,rail,ton48%-u 332.50 Tallow,edible,Chicago-u n.a.
July 3.310 3.374 3.310 3.339 .039 72,587 Currency Futures
Oct 3.305 3.368 3.305 3.340 .042 91,984
Japanese Yen (CME)-¥12,500,000; $ per 100¥ KEY TO CODES: A=ask; B=bid; BP=country elevator bids to producers; C=corrected; E=Manfra,Tordella & Brooks; G=ICE; I=Natural Gas Intelligence;
March .8885 .8887 .8785 .8857 –.0026 195,441 L=livericeindex.com; M=midday; N=nominal; n.a.=not quoted or not available; R=SNL Energy; S=The Steel Index; T=Cotlook Limited; U=USDA; W=weekly, Z=not quoted.
Agriculture Futures June .8924 .8927 .8826 .8898 –.0027 8,919 *Data as of 1/31
Corn (CBT)-5,000 bu.; cents per bu. Canadian Dollar (CME)-CAD 100,000; $ per CAD Source: WSJ Market Data Group
March 360.00 368.50 358.00 368.25 8.50 581,212 March .7671 .7677 .7635 .7669 –.0014 110,623
May 367.00 375.75 365.25 375.75 8.75 246,374 June .7683 .7683 .7645 .7677 –.0014 2,396
British Pound (CME)-£62,500; $ per £
Oats (CBT)-5,000 bu.; cents per bu.
March 245.50 253.25 245.00 250.75 6.50 4,502 March 1.2591 1.2690 s 1.2552 1.2685 .0094 210,122 Bonds | WSJ.com/bonds
June 1.2619 1.2719 s 1.2583 1.2716 .0094 1,472
May 243.25 247.00 241.25 246.00 7.25 2,457
Swiss Franc (CME)-CHF 125,000; $ per CHF
Soybeans (CBT)-5,000 bu.; cents per bu.
March 1024.50 1037.50 1017.00 1036.75 12.25 316,397
March 1.0130 1.0138 1.0061 1.0102 –.0034 49,370 Tracking Bond Benchmarks
June 1.0153 1.0169 1.0133 1.0163 –.0035 177
May 1034.00 1047.50 1027.00 1046.75 12.50 148,781
Australian Dollar (CME)-AUD 100,000; $ per AUD
Return on investment and spreads over Treasurys and/or yields paid to investors compared with 52-week
Soybean Meal (CBT)-100 tons; $ per ton. March .7573 .7590 .7544 .7582 .0004 99,923 highs and lows for different types of bonds
March 334.30 336.20 331.00 336.00 1.40 163,371 June .7559 .7573 .7529 .7566 .0004 769 Total Total
May 338.40 339.70 334.40 339.50 1.60 95,926 Sept .7511 .7537 .7511 .7554 .0005 683 return YTD total Yield (%) return YTD total Yield (%)
Soybean Oil (CBT)-60,000 lbs.; cents per lb. Mexican Peso (CME)-MXN 500,000; $ per MXN close return (%) Index Latest Low High close return (%) Index Latest Low High
March 33.85 34.43 33.80 34.31 .46 170,887 March .04771 .04813 .04771 .04795 .00025 136,328
May 34.15 34.71 34.08 34.60 .46 96,019 June .04720 .04743 .04705 .04727 .00025 47,960 Mortgage-Backed Bloomberg Barclays
Rough Rice (CBT)-2,000 cwt.; $ per cwt. Broad Market Bloomberg Barclays
Euro (CME)-€125,000; $ per €
March 959.50 962.00 950.00 953.00 –.50 9,777 March 1.0814 1.0824 1.0747 1.0793 –.0028 395,477 1877.58 0.1 U.S. Aggregate 2.640 1.820 2.770 1934.86 -0.2 Mortgage-Backed 2.910 1.930 3.070
May 984.00 987.00 977.00 979.00 –.50 1,747 June 1.0869 1.0875 1.0798 1.0845 –.0028 9,458
Wheat (CBT)-5,000 bu.; cents per bu. U.S. Corporate Indexes Bloomberg Barclays 1914.65 -0.1 Ginnie Mae (GNMA) 2.840 1.850 2.990
March 421.00 434.50 417.00 433.75 13.00 242,522 Index Futures 2631.46 0.2 U.S. Corporate 3.390 2.750 3.710 1131.19 -0.3 Fannie mae (FNMA) 2.930 1.950 3.090
May 434.00 446.75 429.50 446.00 12.50 100,271
Wheat (KC)-5,000 bu.; cents per bu. Mini DJ Industrial Average (CBT)-$5 x index 1741.92 -0.3 Freddie Mac (FHLMC) 2.940 1.980 3.110
March 19814 19896 19774 19816 24 127,262 2527.56 0.3 Intermediate 2.860 2.190 3.110
March 429.50 441.75 425.00 440.50 11.00 91,288
June 19745 19832 19717 19756 25 735 3499.80 -0.2 501.56 0.5 Muni Master 2.204 1.297 2.516
July 454.50 466.50 450.00 465.50 11.25 66,441 Long term 4.570 3.960 5.130
Wheat (MPLS)-5,000 bu.; cents per bu. S&P 500 Index (CME)-$250 x index
March 549.50 557.75 547.00 555.75 7.25 28,287 March 2276.00 2285.00 2268.50 2274.50 … 66,436 540.83 0.02 Double-A-rated 2.760 1.980 2.870 349.02 0.5 7-12 year 2.297 1.300 2.618
May 547.50 554.75 546.00 554.00 6.50 26,235 June 2278.00 2279.30 2263.80 2269.20 –0.10 1,850
Mini S&P 500 (CME)-$50 x index 672.38 0.3 Triple-B-rated 3.710 3.180 4.450 386.95 0.3 12-22 year 2.754 1.610 3.047
Cattle-Feeder (CME)-50,000 lbs.; cents per lb.
March 2277.00 2285.00 2268.25 2274.50 … 2,807,756
March 122.100 123.675 t 121.075 122.075 –.700 23,476 High Yield Bonds Merrill Lynch 372.73 0.4 22-plus year 3.325 2.027 3.622
June 2272.00 2279.75 2263.25 2269.25 … 31,446
May 120.875 121.800 t 119.500 120.625 –.700 9,467
Cattle-Live (CME)-40,000 lbs.; cents per lb. Mini S&P Midcap 400 (CME)-$100 x index 394.27 1.5 High Yield Constrained 5.897 5.856 10.099 Global Government J.P. Morgan†
March 1686.60 1701.10 1674.40 1681.10 –4.40 94,029
Feb 115.400 116.400 114.650 115.575 –.025 37,118
April 113.825 114.850 t 112.750 113.700 –.475 148,851
June ... 1691.80 1675.10 1674.60 –4.40 14 394.60 2.6 Triple-C-rated 10.257 10.257 21.753 531.84 -1.0 Global Government 1.520 0.750 1.520
Mini Nasdaq 100 (CME)-$20 x index
Hogs-Lean (CME)-40,000 lbs.; cents per lb. March 5132.0 5158.3 5123.0 5148.5 35.8 237,003 2723.60 1.5 High Yield 100 5.526 5.248 8.635 751.15 -0.3 Canada 1.920 0.770 1.980
Feb 69.500 70.000 s 68.925 69.425 .350 22,754 June 5127.8 5157.0 5122.5 5147.8 35.8 525
April 69.525 69.975 68.225 69.100 –.150 94,963 Mini Russell 2000 (ICE-US)-$100 x index 357.47 1.5 Global High Yield Constrained 5.551 5.508 9.437 359.90 -2.5 EMU§ 1.318 0.512 1.318
Lumber (CME)-110,000 bd. ft., $ per 1,000 bd. ft. March 1361.20 1376.80 1354.70 1359.90 .40 629,798
March 332.00 340.00 s 332.00 337.90 7.90 2,962 June 1362.00 1370.50 1362.00 1359.00 2.00 522 289.22 0.8 Europe High Yield Constrained 3.161 3.083 6.500 685.13 -3.0 France 1.160 0.270 1.160
May 342.90 349.40 s 342.90 347.00 7.60 823 Mini Russell 1000 (ICE-US)-$100 x index
Milk (CME)-200,000 lbs., cents per lb. U.S Agency Bloomberg Barclays 506.36 -1.6 Germany 0.470 -0.100 0.490
March 1268.30 1268.50 1259.20 1263.00 .40 7,778
Feb 16.68 16.79 16.60 16.74 .03 4,156 U.S. Dollar Index (ICE-US)-$1,000 x index 1607.97 0.3 U.S Agency 1.770 1.150 1.910 285.99 -0.8 Japan 0.420 -0.120 0.510
March 17.06 17.19 16.97 17.15 … 4,113 March 99.58 100.06 99.48 99.61 .13 72,577
Cocoa (ICE-US)-10 metric tons; $ per ton. June 99.54 99.93 99.42 99.53 .11 2,493 1448.98 0.2 10-20 years 1.570 0.960 1.710 554.63 -2.1 Netherlands 0.670 0.020 0.680
March 2,098 2,150 2,095 2,109 6 103,290
May 2,097 2,146 2,097 2,112 10 65,042 Source: SIX Financial Information 3136.54 0.5 20-plus years 3.280 2.390 3.460 892.16 -2.3 U.K. 1.750 0.960 2.060
2349.73 0.4 Yankee 2.930 2.320 3.090 750.19 1.5 Emerging Markets ** 5.910 5.134 6.994
Macro & Market Economics *Constrained indexes limit individual issuer concentrations to 2%; the High Yield 100 are the 100 largest bonds † In local currency § Euro-zone bonds
** EMBI Global Index Sources: Merrill Lynch; Bloomberg Barclays; J.P.Morgan
Watching the Gauges: U.S. Supply and Demand
Inventories, imports and demand for the week ended January 27. Current figures are in thousands of barrels or Global Government Bonds: Mapping Yields
thousands of gallons per day, except natural-gas figures, which are in billions of cubic feet. Natural-gas import
Natural-gas import and demand data are available monthly only. 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
Inventories, 000s barrels Imports, 000s barrels per day Country/ Yield (%) Spread Under/Over U.S. Treasurys, in basis points
Coupon (%) Maturity, in years Latest(l) 0 20 40 60 80 100 120 Previous Month ago Year ago Latest Prev Year ago
Expected Previous Year 4-week 5-year Expected Previous Year 4-week 5-year
Current change week ago avg avg Current change week ago avg avg 1.125 U.S. 2 1.213 s l 1.212 1.218 0.805
Crude oil and 2.000 10 2.473 s l 2.458 2.476 1.950
petroleum prod 1,347,457 ... 1,342 1,338 1,340 1,141 10,302 ... 10,290 10,330 10,592 9,626 5.250 Australia 2 1.806 s l 1.790 1.834 1.893 59.3 57.7 108.8
Crude oil 4.750 10 2.742 s l 2.718 2.765 2.574 26.9 26.0 62.4
excluding SPR 494,762 2,900 488 503 488 399 8,290 ... 7,810 8,256 8,383 7,722
Gasoline 257,086 ... 253 254 249 239 ... 593 624 588 531 0.000 France 2 -0.483 s l -0.497 -0.704 -0.387 -169.5 -170.9 -119.3
488
Finished gasoline 27,929 1,300 29 27 29 44 8 ... 37 126 31 19 0.250 10 1.087 s l 1.036 0.688 0.682 -138.6 -142.3 -126.8
Reformulated 44 ... 0 0 0 0 0 ... 0 0 0 0 0.000 Germany 2 -0.714 t l -0.707 -0.786 -0.458 -192.6 -191.9 -126.4
Conventional 27,885 ... 29 27 29 44 8 ... 37 126 31 19
0.250 10 0.469 s l 0.442 0.207 0.353 -200.4 -201.6 -159.7
Blend. components 229,157 ... 225 227 221 196 480 ... 556 498 557 511
0.300 Italy 2 0.036 s l 0.024 -0.187 0.003 -117.6 -118.9 -80.2
Natural gas (bcf) 2,917 ... 3 3 3 2 ... ... ... ... ... ...
1.250 10 2.320 s l 2.277 1.822 1.480 -15.3 -18.2 -47.0
Kerosene-type
jet fuel 42,502 ... 44 42 43 40 ... 167 31 145 92 0.100 Japan 2 -0.225 t l -0.203 -0.182 -0.158 -143.8 -141.5 -96.4
19
Distillates 170,717 -600 169 160 170 135 236 ... 159 191 163 203 0.100 10 0.095 s l 0.090 0.042 0.064 -237.8 -236.8 -188.7
Heating oil 12,928 ... 14 16 13 20 55 ... 74 69 42 65 0.250 Spain 2 -0.252 s l -0.297 -0.307 -0.004 -146.4 -151.0 -80.9
Diesel 157,790 ... 155 144 156 115 181 ... 85 104 121 123
1.300 10 1.679 s l 1.598 1.399 1.574 -79.4 -86.0 -37.6
Residual fuel oil 41,123 ... 41 44 41 37 235 ... 263 250 193 209
Other oils 256,749 ... 256 234 257 218 833 ... 1,042 849 894 697 1.250 U.K. 2 0.144 s l 0.125 0.053 0.405 -106.8 -108.8 -40.0
4.250 10 1.555 s l 1.517 1.091 1.625 -91.8 -94.1 -32.6
Net crude, petroleum
products, incl. SPR 2,042,536 ... 2,037 2,033 2,035 1,835 5,013 ... 4,750 5,966 5,070 5,953 Source: Tullett Prebon
Corporate Debt
Weekly Demand, 000s barrels per day Natural gas storage Price moves by a company’s debt in the credit markets sometimes mirror and sometimes anticipate moves in
Expected Previous Year 4-week 5-year Billions of cubic feet; weekly totals that same company’s share price. Here’s a look at both for two companies in the news.
Current change week ago avg avg
Investment-grade spreads that tightened the most…
Total petroleum Spread*, in basis points Stock Performance
4250 Issuer Symbol Coupon (%) Maturity Current One-day change Last week Close ($) % chg
product 19,307 ... 18,639 19,156 19,314 18,984 Natural gas,
lower 48 states Bank of America BAC 8.000 Jan. 30, ’49 83 –58 n.a. 22.89 1.10
Finished t 3250
Macquarie Infrastructure MIC 2.875 July 15, ’19 63 –26 170 75.82 1.11
motor gasoline 8,310 ... 8,039 8,341 8,222 8,460
Goldman Sachs GS 5.300 July 27, ’49 231 –25 239 230.67 0.59
Kerosene-type 2250
Royal Bank of Scotland RBS 7.500 Aug. 10, ’49 531 –22 565 5.73 1.96
t
jet fuel 1,709 ... 1,460 1,340 1,641 1,424
1250 Southern California Edison EIX 2.400 Feb. 1, ’22 28 –21 50 … …
Distillates 3,809 ... 3,645 3,524 3,687 3,778 Five-year average
for each week General Electric GE 5.000 Jan. 21, ’49 61 –21 n.a. 29.69 –0.03
Residual fuel oil 493 ... 268 160 442 271 National Rural Utilities Coop Finance NRUC 2.300 Nov. 15, ’19 64 –14 n.a. ... ...
250
Propane/propylene 1,453 ... 1,384 1,867 1,586 ...
F M A M J J A S O N D J …And spreads that widened the most
Other oils 3,533 ... 3,842 3,923 3,737 ...
2016
Seagate HDD Cayman STX 4.250 March 1, ’22 245 13 n.a. … …
Note: Expected changes are provided by Dow Jones Newswires' survey of analysts. Previous and average inventory data are in millions.
Sources: SIX Financial Information via WSJ Market Data Group; U.S. Energy Information Administration; Dow Jones Newswires Intesa Sanpaolo Spa* ISPIM 5.710 Jan. 15, ’26 415 11 393 ... ...
Best Buy BBY 5.500 March 15, ’21 125 10 124 44.50 –0.04
ONEOK Partners OKS 4.900 March 15, ’25 145 9 130 51.70 19.84
Exchange-Traded Portfolios | WSJ.com/ETFresearch Allstate ALL 5.750 Aug. 15, ’53 172 8 179 75.24 0.04
Closing Chg YTD Energy Transfer Partners ETP 5.150 March 15, ’45 235 7 228 38.99 2.20
Largest 100 exchange-traded funds, latest session ETF Symbol Price (%) (%)
Kinder Morgan Energy Partners KMI 5.300 Sept. 15, ’20 127 7 n.a. … …
SPDR S&P Div SDY 85.56 –0.72 ...
Wednesday, February 1, 2017 Closing Chg YTD
Closing Chg YTD ETF Symbol Price (%) (%) TechSelectSector
UtilitiesSelSector
XLK
XLU
50.46
48.33
0.76
–1.73
4.3
–0.5
High-yield issues with the biggest price increases…
ETF Symbol Price (%) (%) iSharesMSCIEAFESC SCZ 52.12 0.71 4.6 VanEckBiotech BBH 115.33 1.19 7.2 Bond Price as % of face value Stock Performance
AlerianMLPETF AMLP 13.19 1.38 4.7 iSharesMSCIEAFEETF EFA 59.87 0.40 3.7 VanEckGoldMiner GDX 23.85 –0.33 14.0 Issuer Symbol Coupon (%) Maturity Current One-day change Last week Close ($) % chg
CnsmrDiscSelSector XLY 84.67 –0.19 4.0 iShMSCIEmgMarkets EEM 37.36 0.05 6.7 VanEckOilSvcs OIH 33.37 0.03 0.1
CnsStapleSelSector XLP 52.18 –0.78 0.9 iShMSCIEurozoneETF EZU 35.40 0.17 2.3 VanEckPharm PPH 52.63 0.59 0.2 ONEOK OKE 6.000 June 15, ’35 106.500 5.50 n.a. 54.00 –2.01
DBGoldDoubleLgETN DGP 22.11 –0.51 9.9 iShMSCIJapanETF EWJ 50.84 0.53 4.1 VanEckRetail RTH 76.28 –0.39 0.6
iShNasdaqBiotech IBB 280.42 0.85 5.7 VanEckSemiconduc SMH 75.20 1.02 5.0 Concordia International CXRCN 9.500 Oct. 21, ’22 45.000 2.56 43.750 ... ...
DBGoldDoubleShrt DZZ 6.17 0.73 –9.9
iShNatlAMTFrMuniBd MUB 108.09 –0.15 –0.1 VangdInfoTech VGT 127.65 0.72 5.1 Scientific Games International SGMS 10.000 Dec. 1, ’22 105.101 2.23 102.500 17.55 3.24
DeutscheXMSCIEAFE DBEF 28.37 0.39 1.1
iShRussell1000Gwth IWF 108.59 0.22 3.5 VangdSC Val VBR 121.65 –0.11 0.5
EnSelectSectorSPDR XLE 72.36 –0.74 –3.9 Navios Maritime Holdings NM 8.125 Feb. 15, ’19 80.000 1.88 77.500 1.92 –2.04
iShRussell1000ETF IWB 126.87 0.01 1.9 VangdDivApp VIG 86.23 –0.52 1.2
FinSelSectorSPDR XLF 23.34 0.13 0.4
iShRussell1000Val IWD 112.41 –0.27 0.3 VanguardFTSEDevMk VEA 38.01 0.34 4.0
GuggenheimSP500EqW RSP 88.16 –0.25 1.8
iShRussell2000Gwth IWO 156.37 0.08 1.6 VanguardFTSEEmgMk VWO 37.92 0.21 6.0
Apex Tool APEXTO 7.000 Feb. 1, ’21 94.500 1.50 91.750 ... ...
HealthCareSelSect XLV 71.13 0.87 3.2
IndSelSectorSPDR XLI 63.27 –0.17 1.7
iShRussell2000ETF IWM 135.15 –0.06 0.2 VanguardFTSEEurope VGK 49.51 0.30 3.3 Baffinland Iron Mines BIMCN 12.000 Feb. 1, ’22 100.000 1.50 n.a. ... ...
iShRussell2000Val IWN 117.93 ... –0.8 VanguardAWxUS VEU 46.12 0.24 4.4
iShIntermCredBd CIU 108.33 –0.12 0.1
iShRussell3000ETF IWV 135.42 0.03 1.8 VangdGrowth VUG 115.84 0.37 3.9
Dish DBS DISH 5.875 Nov. 15, ’24 103.000 1.50 102.125 … …
iSh1-3YCreditBond CSJ 104.96 –0.04 0.0
iSharesTIPSBondETF TIP 113.94 –0.21 0.7
iShRussellMid-Cap IWR 182.53 –0.32 2.1 VanguardHiDiv VYM 75.39 –0.46 –0.5 Mallinckrodt International Finance S.A. MNK 5.500 April 15, ’25 87.750 1.50 85.719 … …
iShRussellMCValue IWS 81.50 –0.32 1.3 VanguardIntrm BIV 83.01 –0.18 –0.1
iShCoreHiDividend HDV 81.26 –0.48 –1.2
iShCoreMSCIEAFEETF IEFA 55.68 0.43 3.8
iShS&P500Growth
iShS&P500ValueETF
IVW
IVE
125.59
101.78
0.19
–0.19
3.1
0.4
VangIntrCorpBd
VanguardLC
VCIT
VV
85.61
104.40
–0.23
0.04
–0.1
2.0
…And with the biggest price decreases
iShCoreMSCIEmgMk IEMG 45.30 0.13 6.7 iShUSPfdStk PFF 37.90 ... 1.9 VanguardMC VO 135.29 –0.17 2.8
iShCoreS&P500ETF IVV 229.05 0.05 1.8 iSh1-3YTreasuryBd SHY 84.46 –0.02 0.0 VanguardMCVal VOE 99.25 –0.05 2.1
Diamond Offshore Drilling DO 4.875 Nov. 1, ’43 71.750 –2.00 74.500 16.38 ...
iShCoreS&PMdCp IJH 167.70 –0.28 1.4 iSh7-10YTreasuryBd IEF 104.69 –0.19 –0.1 VangdREIT VNQ 81.38 –1.20 –1.4 Chemours CC 6.625 May 15, ’23 100.000 –1.75 99.688 26.80 1.44
iShCoreS&PSmCpETF IJR 68.29 –0.10 –0.7 iShRussellMCGrowth IWP 100.45 –0.15 3.1 VanguardS&P500 VOO 209.00 0.01 1.8
iShS&PTotlUSStkMkt ITOT 52.32 ... 2.0 PwrShrs QQQ QQQ 125.43 0.69 5.9 VangdST Bond BSV 79.55 –0.04 0.1
EP Energy EPENEG 6.375 June 15, ’23 87.250 –1.75 83.000 ... ...
iShCoreUSAggBd AGG 107.92 –0.14 –0.1 PS SP500LoVoltlPrt SPLV 41.44 –0.91 –0.3 VanguardSTCpBd VCSH 79.49 –0.01 0.2 Paperworks Industries PAPWRK 9.500 Aug. 15, ’19 85.500 –1.24 86.500 ... ...
iShSelectDividend DVY 89.14 –0.69 0.6 PwrShSrLoanPtf BKLN 23.29 –0.04 –0.3 VanguardSC VB 130.68 –0.19 1.3
iShEdgeMSCIMinEAFE EFAV 63.36 0.30 3.5 SPDRBloomBarcHYBd JNK 36.82 0.25 1.0 VanguardTotBd BND 80.63 –0.17 –0.2 Cenovus Energy CVECN 6.750 Nov. 15, ’39 111.776 –1.23 112.473 ... ...
iShEdgeMSCIMinUSA USMV 45.48 –0.68 0.6 SchwIntlEqty 28.80 0.38 4.0 VanguardTotIntlBd 53.66 –0.10 –1.2
iSharesGold IAU 11.64 –0.26 5.1
SCHF BNDX Bristow BRS 6.250 Oct. 15, ’22 88.750 –0.88 91.000 17.31 –1.98
SchwUS BrdMkt SCHB 55.22 0.02 1.9 VanguardTtlIntlStk VXUS 47.91 0.34 4.4
iShiBoxx$InvGrCpBd LQD 116.89 –0.12 –0.2 SchwUS LrgCap SCHX 54.34 0.04 2.0 VanguardTotStk VTI 117.45 –0.01 1.8 Syniverse Foreign Holdings SVR 9.125 Jan. 15, ’22 95.938 –0.81 97.250 ... ...
iShiBoxx$HYCpBd HYG 87.28 0.38 0.8 SPDR DJIA Tr DIA 198.63 0.14 0.6 VangdTotlWrld VT 62.92 0.14 3.1
iSharesJPMUSDEmgBd EMB 111.71 0.03 1.4 SPDR GldTr GLD 115.20 –0.30 5.1 VangdValue VTV 93.20 –0.29 0.2 *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.
iShMBSETF MBB 106.11 –0.12 –0.2 SPDR S&PMdCpTr MDY 305.81 –0.29 1.4 WisdTrEuropeHdg HEDJ 57.67 0.42 0.5 Note: Data are for the most active issue of bonds with maturities of two years or more
iShMSCIACWIETF ACWI 60.92 0.05 3.0 SPDR S&P 500 SPY 227.62 0.04 1.8 WisdTrJapanHdg DXJ 50.20 0.66 1.3 Sources: MarketAxess Corporate BondTicker; WSJ Market Data Group
B10 | Thursday, February 2, 2017 * *** THE WALL STREET JOURNAL.

BANKING & FINANCE

MetLife Posts Loss BlackRock Dives Deep Into Energy

As Hedging Bites BY SARAH KROUSE
AND RYAN DEZEMBER
2014. The older $1.2 billion
fund returned 0.9% annually
after fees, through Dec. 31, ac-
The world’s largest asset cording to a person familiar

FABRICE COFFRINI/AGENCE FRANCE-PRESSE/GETTY IMAGES

BY LESLIE SCISM $1.42 billion, or $1.28 a share, manager is buying $3.7 billion with the matter. That is down
compared with $1.38 billion, in funds that invest in pipe- from 8.6% two years earlier,
MetLife Inc. swung to a or $1.23 a share, in the year- lines, power plants and wind according to public pension
$2.13 billion fourth-quarter earlier quarter. The results farms, expanding on a bet that records, when oil and gas
net loss, hit primarily by missed analysts’ consensus ex- investors will want to back prices were higher.
losses from its hedging pro- pectation of $1.34 a share. more infrastructure projects About half of the newer
gram when interest rates Operating income excludes around the world. $2.5 billion fund remains unin-
edged up at year-end. the effect of hedging as well BlackRock Inc. has agreed vested. Mr. Barry said he
In the long term, the rise in as realized capital gains and to acquire two energy infra- hopes to begin raising a third
interest rates bodes well for losses in the investment port- structure funds and the 37- fund within the next 18
MetLife. Few American indus- folio and some other items. person team that runs them months.
tries are as hurt by low rates The metric is watched by Wall from private-equity firm First After the deal, roughly half
as life insurers, which invest Street as a measure of an in- Reserve Corp. The funds in- of BlackRock’s infrastructure
huge sums of premium until surer’s ability to earn profits vest in oil and gas pipelines, business will be focused on
the money is needed to pay on a recurring basis. energy storage facilities and energy and renewable
claims. The money is typically power plants. Financial terms CEO Laurence Fink sees opportunity in infrastructure investments. power. BlackRock is seeking to
invested in higher-quality weren’t disclosed for the raise about $1 billion in its lat-

$2.13B
bonds, so insurers’ profits transaction, which requires President Donald Trump project in Mexico. They est renewable energy fund, ac-
have been pressured as they approval from public pensions advocated further investments teamed up with national oil cording to people familiar
put new money to work at the and others invested in the in domestic infrastructure company Petróleos Mexica- with the matter.
ultralow levels since 2008. funds. throughout his campaign, nos, or Pemex, which has been For First Reserve, the di-
But MetLife’s results took a Fourth-quarter loss, compared The deal reinforces a Wall spurring expectations of in- selling assets as part of a push vestiture reduces the firm to
hit in the latest period be- with $785 million profit last year Street focus on public works creased opportunities for the to privatize the country’s en- its core private-equity busi-
cause life insurers must mark as large money managers seek private sector. ergy sector. ness of investing in businesses
their derivatives to market un- out investments in highways, “Our underinvestment in The Pemex project brings such as energy explorers and
der generally accepted ac- bridges, tunnels, airports and infrastructure as a country—in U.S. natural gas to central oil-field-services companies.
counting principles. When MetLife said its net invest- pipelines. Investors in 2016 our ports, in our transport Mexico, a channel that has The firm, which was
rates rise, the value falls of ment income edged up 3% in committed a record $59 billion networks, in our airports— helped support gas prices in founded more than 30 years
the protection they bought to the latest quarter, to $5.04 bil- to private infrastructure could be a big opportunity,” the U.S. Some analysts warn ago, reaped big profits for in-
protect results from low rates. lion, driven by strong perfor- funds, bringing to more than BlackRock CEO Laurence Fink that trade policies limiting vestors during its early years
MetLife’s report came as mance of a slice of the portfo- $140 billion the amount of said in an interview. that flow of energy could in- as it helped pioneer private-
fellow insurers Lincoln Na- lio focused on private-equity ready-to-invest cash in such BlackRock’s $10 billion in crease a domestic gas glut and equity investing in the oil
tional Corp. and Allstate investments. funds, according to data pro- infrastructure assets under harm prices. patch. But in recent years two
Corp. also posted fourth-quar- Operating earnings in its vider Preqin. management is a small compo- “We are anticipating vola- multibillion-dollar funds that
ter results. big U.S. segment increased Several multibillion-dollar nent of the $5.1 trillion it man- tility,” said Jim Barry, global aren’t part of the BlackRock
MetLife’s shares fell 1.5% in 19% year over year, 22% in infrastructure funds are being ages globally. But the growth head of BlackRock’s real assets deal have struggled with
after-hours trading, while Lin- Asia and 33% in the smaller raised by private-equity firms of its infrastructure business business, but he noted the Pe- losses and are on pace to lose
coln was inactive and Allstate Europe, Middle East and Af- including Carlyle Group LP is a priority within its alterna- mex deal was structured to money for investors, according
surged 4.9%. rica business. It cited volume and Global Infrastructure tive investment business, compensate investors even if to public pension documents.
MetLife’s net loss in the pe- growth, cost improvement, a Partners, which has told in- which manages more than gas isn’t supplied. The firm’s First Reserve plans to rein-
riod compared with a profit of tax-related item in Japan and vestors its latest fund could be $117 billion in assets for pen- “commitment to Mexico and vest proceeds from the sale in
$785 million a year earlier and a claims-reserve release. the largest ever of its kind at sions, sovereign-wealth funds the region more generally is its private-equity business, in-
included $3.2 billion in deriva- But operating profit fell $15 billion. Such funds lock up and other big investors. absolute.” cluding buying out ownership
tive losses tied to changes in 22% in Latin America, where investor cash for 10 years or Executives from BlackRock The two funds that Black- stakes in the firm from em-
interest rates and currencies, MetLife said it enjoyed a one- more, allowing managers to and First Reserve met through Rock plans to acquire from ployees who have left in re-
among others. time tax benefit in the year- collect fees and share in prof- their 2015 purchase of a 45% Greenwich, Conn.-based First cent years, according to peo-
Operating income rose to earlier period. its. stake in a natural-gas pipeline Reserve launched in 2011 and ple familiar with the matter.

New Highs and Lows | WSJ.com/newhighs Stock

52-Wk %
Sym Hi/Lo Chg Stock
52-Wk %
Sym Hi/Lo Chg Stock
52-Wk %
Sym Hi/Lo Chg Stock
52-Wk %
Sym Hi/Lo Chg Stock
52-Wk %
Sym Hi/Lo Chg Stock
52-Wk %
Sym Hi/Lo Chg Stock
52-Wk %
Sym Hi/Lo Chg
Olin OLN 30.00 11.9 WestAllianceBcp WAL 50.76 -0.1 PwrShrEmrgInfra PXR 33.85 0.8 AmplifyOnlineRet IBUY 28.50 0.5 ForwardPharma FWP 33.00 0.6 NicoletBankshares NCBS 48.70 -0.4 21stCenturyFoxB FOX 31.30 0.7
The following explanations apply to the New York Stock Exchange, NYSE Arca, NYSE OrionEngCarbons OEC 21.15 1.5 WstAstCpLoanFd TLI 11.95 -0.3 PwrShrETFDvMkt PDN 28.51 0.6 Apple AAPL 130.49 6.1 GP Invts GPIA 10.00 0.1 NorwoodFin NWFL 37.00 0.1 TwoRiverBancorp TRCB 16.10 1.3
MKT and Nasdaq Stock Market stocks that hit a new 52-week intraday high or low in PIMCOCorp&Incm PTY 15.66 0.9 WstAstOppFd HIO 5.17 0.2 PwrShrAPac ex-Jap PAF 51.58 0.3 AscendisPharma ASND 22.39 2.1 GladstoneLand LAND 12.28 1.7 NovaMeasuring NVMI 15.53 3.1 US Ecology ECOL 51.90 1.0
the latest session. % CHG-Daily percentage change from the previous trading session. PIMCODynamicCred PCI 20.85 ... WestlakeChemPtrs WLKP 25.83 2.0 ProSharesShtVIXST SVXY 121.23 1.7 AuburnNatlBncp AUBN 33.40 1.4 GlobalIndemnity GBLI 40.96 -1.2 Nuvasive NUVA 71.72 ... UltraClean UCTT 12.80 0.6
PIMCOIncOpFd PKO 24.46 0.7 WhiteMtnIns WTM 918.01 -1.2 SPDRBloomBarc0-5Y SIPE 19.97 ... AxoGen AXGN 11.25 -0.9 GolarLNGPartners GMLP 25.33 0.9 Overstock OSTK 20.50 5.4 UnitedTherap UTHR 164.92 0.2
PIMCO IncmStrFdII PFN 9.88 0.4 Zoetis ZTS 55.35 0.7 SPDRMFSSysGrowth SYG 66.03 0.8 BGC Partners BGCP 11.28 0.4 GreenBancorp GNBC 17.55 -1.5 Paccar PCAR 69.80 2.0 VarexImaging VREX 31.75 5.7
Wednesday, February 1, 2017 PNC Fin Wt PNC/WS 55.00 1.5 SPDRACWILowCarbon LOWC 77.74 0.4 BMOElkhornDWAMLP BMLP 55.62 2.6 H&E Equipment HEES 26.63 2.1 ParagonCommercial PBNC 46.50 0.8 VSInvVIXMedTerm ZIV 53.94 1.5
52-Wk % 52-Wk % 52-Wk % PNC Fin
POSCO
PNC
PKX
122.58
60.52
0.6
3.1
NYSE lows - 13 SPDRS&P500Fossil SPYX 55.36 0.3 BankofOzarks OZRK 56.49 -0.1 HamiltonBancorp HBK
SPDR S&P IntInd IPN 31.15 1.4
14.90 0.3 Park-Ohio PKOH 47.00 4.2 VSInverseVIXSTerm XIV 62.56 1.9
Stock Sym Hi/Lo Chg Stock Sym Hi/Lo Chg Stock Sym Hi/Lo Chg CGG CGG 10.00 -1.3 UBSNatGasMLPETN MLPG 28.23 2.7 BiogenWi BIIBV 267.02 2.2 HancockHolding HBHC 47.20 -0.4 PathfinderBncp PBHC 14.55 1.0 WayneSavings WAYN 18.48 1.5
PampaEnergia PAM 48.00 2.4 BlueBird BLBD 18.15 1.2 Hologic
Cato CATO 24.80 -1.5 WisdTrIntlSC DLS HOLX 41.24 0.8 PinnacleEnt PNK 15.97 1.6

NYSE highs - 153

Cinemark CNK
ClearbridgeEnMLPTR CTR
42.71
13.79
-0.5
2.7
HiltonGrandVac HGV
Ingevity NGVT
29.79
56.43
-0.2
0.5
Petrobras
PioneerFR
PZE
PHD
9.95
12.31
2.2
0.3 Ciber CBR
63.28 0.8
0.42 8.4 WisdTrJapanTech DXJT 27.73 0.2 BluStrTABIGIIsrael ITEQ 26.32 0.2 IdexxLab
CBOE Holdings CBOE 79.99 -1.5 ILG
IDXX
ILG
123.26
19.15
0.4
-0.2
PowerIntegrations POWI
PwrShsDynTchSec PTF
72.65
42.42
2.0
1.6
Nasdaq lows - 31
Colfax CFX 41.00 3.9 InterXion INXN 39.08 0.8 PlatformSpecialty PAH 12.39 2.1 DynegyWt DYN/WS 0.03 -24.6
CDK Global CDK 63.30 -0.8 IPG Photonics IPGP Angie'sList ANGI 6.21 4.5
AberdeenSingapore SGF
AdvntClymrSecII AGC
9.60
6.08
0.7
-0.2
ColonyNrthStPfB CLNSpB
CLSelPrTechGrFd STK
25.44
19.94
0.4
0.4
JELD-WEN
JMP
JELD
JMP
27.33
6.60
-0.1
5.7
PlyGem
PutnmMstIntm PIM
PGEM 18.10
4.74
6.8
-0.4
Fitbit
Infosys
FIT
INFY
NYSE Arca lows - 10
5.81 -1.2
13.42 -1.3 CVD Equipment CVV 10.47 1.2 iRhythmTechs IRTC
116.00
33.47
-0.7
0.2
PowerSharesIntlBuy IPKW
Pulmatrix PULM
30.34
4.40
0.2
73.5
Bio-Path BPTH 0.86 -6.3
KeyCorpPfdC KEYpH 24.98 -0.1 iPathS&P500VIXST VXX CalamosConvOp CHI 10.85 -0.4 Biostage BSTG 0.73 -8.2
AgilentTechs A 49.81 0.6 CompassMnlInt CMP 84.40 -2.1 JP Energy JPEP 10.58 -0.8 RadianGroup RDN 18.95 2.9 18.85 -1.6 iShMSCIBrazilSC EWZS 13.28 1.5 PulseBiosciences PLSE 6.84 3.1
10.90 -0.6 Iteris CatabasisPharm CATB 1.08 -70.8
AllianzGICnvIncmII NCZ 6.09 -0.2 Constellium CSTM 7.95 4.7 KB Fin KB 41.30 1.2 RenaissanceRe RNR 142.35 3.8 PitneyBowes PBI 12.41 -17.5 PathS&P500VIXMT VXZ 29.94 -1.4 CalamosStratTot CSQ ITI 5.04 4.1 Qorvo QRVO 65.97 0.5
Ramco-GershenPfd RPTpD 59.10 -2.1 PIMCO1-3USTreaIdx TUZ 50.23 ... Camtek CAMT 3.65 9.3 KLREnergy DimensionTherap DMTX 1.80 -2.6
AllianzGIDivIncm ACV 19.77 1.4 CypressEnergy CELP 14.27 1.5 KKR IncomeOpps KIO 16.77 0.2 RoperTech ROP 192.75 -0.3 KLRE 10.65 0.5 RaPharm RARX 17.16 4.4
RiteAid RAD 5.26 -6.2 ProSharesUltVIXST UVXY 23.54 -3.1 CaraTherap CARA 17.20 7.6 EducDev EDUC 6.90 -4.0
Allstate ALL 75.97 ... Dana DAN 20.62 0.7 KeyCorpPfdE KEYpI 27.60 0.2 ScorpioBulkNt19 SLTB 23.95 0.6 Kamada KMDA 6.40 2.5 RealPage RP 31.30 1.3
RubyTuesday RT 1.85 -5.6 ProShrUSCnsmrSvc SCC 33.21 -0.9 Carbonite CARB 19.90 11.0 LHC Group Evogene EVGN 4.90 -1.2
AllyFinancial ALLY 21.77 2.3 Danaher DHR 84.74 -0.5 Knowles KN 18.35 0.5 SnapOn SNA 181.73 -0.7 LHCG 50.63 -0.3 SLM SLM 12.16 -0.3
StoreCapital STOR 22.90 -2.0 ProShrUSTech REW 28.12 -1.4 CarolinaBankNC CLBH 28.01 1.0 LawsonProducts LAWS ExtractionOil XOG 17.11 -3.6
AlpineTotDynDiv AOD 7.98 0.3 DellTechnologies DVMT 63.30 0.2 KronosWorldwide KRO 13.89 2.7 SonocoProducts SON 55.58 0.1 26.55 -0.2 SalisburyBancorp SAL 39.00 -0.5
Wipro WIT 9.00 -1.6 ProShsVIXMTFut VIXM 36.34 -1.5 Cavium CAVM 67.33 0.5 LendingTree FinTechAcqnII FNTEU 10.01 -0.1
Altria MO 72.00 0.3 Disney DIS 111.99 0.6 LazardGlblFd LGI 14.42 -0.1 StifelFinancial SF 52.91 3.5 TREE 114.25 -0.8 SandySpringBncp SASR 41.66 0.7
ProShsVIXSTFut VIXY 15.73 -1.7 CentralGarden CENT 34.70 4.4 LibertySirius C LSXMK GalenaBiopharma GALE 1.25 -22.4
AlumofChina ACH 13.44 3.2 Domino's DPZ 175.84 -2.1 Level3Comm LVLT 60.13 -0.6 STMicroelec STM 13.74 3.4 36.38 1.3 ScientificGames SGMS 18.05 3.2
Anthem ANTM 160.79 4.3 DoubleLineIncm DSL 20.00 0.1 M&T Bank MTB 166.34 0.1 TelecomArgentina TEO 20.57 5.3 NYSE Arca highs - 33 SPDRBloomBarcSTTr SST 29.83 0.1 CentralGardenA CENTA 32.60 5.0
WBIPwrFactorHiDiv WBIY 23.99 -0.6 CirrusLogic
Littelfuse
CRUS 64.16 6.0 LiveOakBcshs
LFUS 166.39 2.7 ServisFirstBcshs SFBS 41.16 0.1
Innocoll INNL
InsigniaSystems ISIG
0.53 -6.1
1.48 -0.6
AnthemUn ANTX 49.68 2.1 ESCO Tech ESE 58.95 -0.1 M&TBankWt MTB/WS 90.02 2.4 TimeWarner TWX 97.35 -0.1 ARKInnovationETF ARKK 22.41 0.8 LOB 20.90 -2.2 SilganHoldings SLGN 61.13 2.9
ApolloTactical AIF 16.00 0.1 ClovisOncology CLVS 67.16 0.6 MGC Diagnostics MGCD KonaGrill KONA 8.35 -7.7
Eaton ETN 71.71 0.7 MDC Holdings MDC 28.50 2.1 TItanIntl TWI 13.61 -2.3
ArconicPfdB ARNCpB 40.50 9.7 EtnVncSrFltRte EFR 15.13 0.1 MGIC Investment MTG 10.97 2.7 TortoiseEnerInf TYG 34.40 4.5
QAM Equity Hedge QEH 28.03 0.2
BarclaysETN+Select ATMP 25.01 3.7 NYSE MKT highs - 9 CoastwayBancorp CWAY 16.80 ...
Cognex CGNX 68.65 0.6
MKS Instrum MKSI
9.99
67.25
7.2
1.4
SiliconLab
Skyworks
SLAB
SWKS
69.50
94.49
6.2
...
LeapTherap
Mattel
LPTX
MAT
6.10 -1.1
25.35 -2.7
AresDynamicCredit ARDC 15.74 0.5 EatonVanceSrInc EVF 6.84 0.1 MSG Networks MSGN 23.95 -0.4 TortoiseMLPFund NTG 20.89 4.6 CSX-LinksL/SEquity CSLS 27.54 -0.4 AmericanFarmland AFCO MakeMyTrip MMYT 36.60 9.4 SodaStream SODA 44.52 1.2
8.70 3.2 MaysJW MAYS 39.00 -9.3
AssocCapital AC 36.25 2.4 EtnVncShrtDur EVG 13.97 -0.5 Manpower MAN 98.02 2.0 TortPwEnInfrFd TPZ 23.19 1.0 ETRACS2xLevxEn LMLP 13.28 1.7 AmShrHosp Coherent COHR 162.35 0.2
AMS 4.55 -3.6 MalibuBoats MBUU 20.51 7.7 SoundFinBancorp SFBC 31.90 0.9 MeridianWaste MRDN 2.75 -5.7
AtkoreIntl ATKR 27.30 2.0 EtnVncTxAdvDiv EVT 21.74 0.1 MaxLinear MXL 25.98 0.9 TrancntlRlty TCI 16.50 7.5 ETRACS2xMLevS&PMLP MLPZ 60.59 3.7 CRH Medical CRHM 6.40 -0.8 CommScope COMM 38.31 0.5
MarketAxess MKTX 190.29 0.5 Spectranetics SPNC 27.40 2.5 NantHealth NH 7.63 -0.7
AveryDennison AVY 80.84 9.1 EmpresaDisCom EDN 35.16 0.9 MedleyNts24 MDLQ 25.67 1.5 TransportadGas TGS 10.92 1.8 FlexMDevexUSFac TLTD 59.08 0.8 Chase Cutera CUTR 19.35 3.0
CCF 92.95 4.2 MarlinBusSvcs MRLN 23.35 ... SprottFocus FUND 7.39 0.8 Nxt-ID NXTD 2.30 -6.3
BancSanBrasil BSBR 10.23 2.3 Energizer ENR 53.86 3.2 MercuryGeneral MCY 63.79 0.5 Trinseo TSE 67.15 3.7 FlexSharesEmMktsFa TLTE 49.47 0.4 CloughGlblDiv GLV 12.77 -0.3 EchoStar SATS 55.67 8.1
MarvellTech MRVL 15.59 3.1 StellarAcqnIIIWt STLRW 0.60 6.7 OncoSecMedical ONCS 1.03 -0.9
BlkRkDebtStratFd DSU 11.60 0.8 EssentGroup ESNT 36.00 3.2 Meredith MDP 62.40 1.2 TritonIntl TRTN 24.92 -1.4 GlblX ChnMtrs CHIM 16.74 2.6 ContinentalMatls CUO 30.35 1.0 ElbitSystems ESLT 110.75 ... Masimo MASI 74.82 0.5 SupernusPharms SUPN 27.95 -1.3
BlckRkEnDivTr BDJ 8.30 0.4 PlugPower PLUG 1.00 -3.8
EvercorePtrs EVR 80.20 0.3 Meritor MTOR 15.79 7.7 Tronox TROX 13.31 6.0 GlbXCopperMiners COPX 25.15 1.8 NeubrgBermMLPIncm NML 10.36 1.9 EncoreCapital ECPG 31.84 2.7 MicronTech MU 24.85 2.7 Symantec SYMC 27.70 -1.1
BlkRkDurInco Tr BLW 15.87 -0.2 FidcryClymrOppFd FMO 16.94 3.5 MesabiTrust MSB 16.90 22.6 US Silica SLCA 60.05 0.8 GlbXGuruIntlIndex GURI 14.29 1.7 ReavesUtilFd UTG 32.96 -0.3 EntegraFin ENFC 22.20 0.5 RealGoodsSolar RGSE 2.90 -24.3
BlackRockScience BST 19.24 -0.1 95.95 -0.5 435.89 2.1 131.19 2.7 Mind CTI MNDO 2.72 2.3 Synalloy SYNL 12.15 1.3
FirstRepBank FRC MettlerToledo MTD UnitedRentals URI IQAgribusSmall CROP 32.64 0.9 WellsFargoIncOpp EAD 8.59 0.2 FRP Holdings FRPH 43.80 8.7 MitchamIndustries MIND 4.99 2.4 SyneronMedical ELOS 9.80 2.1
Sigmatron SGMA 4.22 -5.4
BlackstoneLSCrInco BGX 16.15 0.2 ForestCity B FCE/B 29.30 -0.2 NextEraEnergy NEP 32.95 2.1 US Bancorp USB 53.64 0.7 IQMergerArbitrage MNA 29.73 -0.1 Ferroglobe GSM 12.53 16.6 Strattec STRT 27.80 -7.3
Mocon MOCO 21.10 4.5 Synopsys SNPS 63.19 -0.4
BlckstnGSOStratCrd BGB
BlackstoneGroup BX
16.02
31.69
1.0
1.7
FortressInvt FIG
FourCornersProp FCPT
5.73
22.32
0.9
-2.2
NobleMidstream NBLX
NAmerEnergyPtr NOA
46.52
5.40
1.4
2.9
VailResorts
Validus
MTN
VR
173.04
57.78
0.1
1.1
InnovatorIBD50Fund FFTY 25.05 0.6
iShExponentialTech XT 28.06 0.4
NYSE MKT lows - 2 FirstBancorpNC
FirstFinNW
FBNC 30.27 2.4
FFNW 21.29 -1.1 MomentaPharm MNTA 19.90 2.4 TESARO TSRO 164.99 -1.1
TrovaGeneUn TROVU
VS2xVIXMedTerm TVIZ
6.75 -42.7
5.52 -3.6
Brunswick BC 61.07 1.6 GasLogPartners GLOP 23.37 -0.7 NuvFRIncmFd JFR 12.22 1.2 ValleyNatlBncp VLY 12.34 -1.7 iShMSCIAustriaCap EWO 17.71 1.4 CamberEnergy CEI 0.72 -4.0 FirstFoundation FFWM 15.13 1.0 MotifBio MTFB 6.69 2.3 T-Mobile Pfd TMUSP 105.89 1.5
NICE 70.84 -0.6 TakeTwoSoftware TTWO 55.47 1.3 VS2xVIXShortTerm TVIX 5.11 -3.7
Cabot CBT 56.50 1.6 Glaukos GKOS 41.44 -0.3 NuvGlblHiIncmFd JGH 16.56 0.5 Vantiv VNTV 63.97 ... iShMSCIPolandCap EPOL 20.43 1.1 MilestoneSci MLSS 1.10 ... FTDevelopedMkts FDT 50.22 1.1 NICE VSVIXMedTerm VIIZ 10.40 -2.3
CenterCoastMLP CEN 13.30 2.3 GoldmanSachsBDC GSBD 24.00 0.8 NuvS&P500DynOver SPXX 14.95 1.8 Vedanta VEDL 15.38 3.0 iShUSBrokerDealers IAI 52.37 0.4 FT NasdSmartphone FONE 43.08 0.2 NV5Global NVEE 41.45 0.1 TeleNav TNAV 10.15 8.4
CenterPointEner CNP
CtrlEuropeRussiaFd CEE
26.25
21.50
-1.1
...
GuggenheimStrOp GOF
HCI Group HCI
20.19
42.25
0.1
-0.7
NuvShrtDurCrOppFd JSD
ONEOK Partners OKS
18.25
57.41
...
19.8
WabashNational WNC
Walker&Dunlop WD
20.64
32.78
14.4
3.3
JPMorgAlerian AMJ 33.94 1.4
NatixisSeeyondIntl MVIN 40.07 0.3
Nasdaq highs - 139 FT SwitzAlpha FSZ
FormFactor
42.93 0.5 Net1UEPS
FORM 12.75 2.0 NeuroDerm
UEPS
NDRM
12.74
24.80
9.1
-4.2
TowerSemi TSEM
TriCoBancshares TCBK
21.66
37.15
2.0
-0.7
VSVIXShortTerm VIIX
VisionChina VISN
6.38 -1.7
3.78 3.6
Cigna CI 149.42 1.0 HercHoldings HRI 52.96 6.3 OldRepublic ORI 21.06 0.4 WellCareHealth WCG 148.52 1.6 PwrshsDyMedia PBS 27.79 0.4 Acxiom ACXM 30.40 10.9 NexstarMedia NXST 68.00 3.1 21stCenturyFoxA FOXA 31.75 0.8 WorkhorseGroup WKHS 2.91 -5.2

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NAV Chg % Ret Fund
Net YTD
NAV Chg % Ret Fund
Net YTD
NAV Chg % Ret

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Explanatory Notes Data provided by
Top 250 mutual-funds listings for Nasdaq-published share classes with net assets of at least
EqtyInc r
O
Oakmark Funds Cl I
31.02
TIAA/CREF Funds
+0.03 2.0 EqIdxInst 16.91 +0.01 1.9
T
INSTTRF2040 20.43 +0.02
LifeCon
LifeGro
LifeMod
18.63 -0.01
29.52 +0.03
24.55 +0.01
2.5
1.0
2.3
1.7
$500 million each. NAV is net asset value. Percentage performance figures are total returns,
assuming reinvestment of all distributions and after subtracting annual expenses. Figures don’t Oakmark 73.24 -0.18 1.0 Tweedy Browne Fds PrmcpCor 22.87 +0.03 3.1
reflect sales charges (“loads”) or redemption fees. NET CHG is change in NAV from previous OakmrkInt 23.74 +0.10 4.6 GblValue 25.37 +0.04 1.3 SelValu r 29.58 +0.01 2.8
BUSINESS OPPORTUNITIES trading day. YTD%RET is year-to-date return. 3-YR%RET is trailing three-year return Old Westbury Fds STAR 24.20 +0.02 2.2
annualized. LrgCpStr 13.12 +0.03 2.3 V STIGrade 10.65 ... 0.3
e-Ex-distribution. f-Previous day’s quotation. g-Footnotes x and s apply. j-Footnotes e and s Oppenheimer Y VANGUARD ADMIRAL TgtRe2015 14.69 ... 1.2
 
 
    
apply. k-Recalculated by Lipper, using updated data. p-Distribution costs apply, 12b-1. r-
Redemption charge may apply. s-Stock split or dividend. t-Footnotes p and r apply. v-Footnotes
DevMktY
IntGrowY
33.71
35.64
+0.15 5.4
+0.12 2.8
500Adml 210.59 +0.11 1.9 TgtRe2020 28.69 ... 1.5
BalAdml 31.49 -0.01 1.2
 
         
  x and e apply. x-Ex-dividend. z-Footnote x, e and s apply. NA-Not available due to incomplete CAITAdml 11.57 ... 0.6
TgtRe2025 16.63 ... 1.7

 
           !   " # price, performance or cost data. NE-Not released by Lipper; data under review. NN-Fund not P CapOpAdml r 129.29 +0.45 4.1
TgtRe2030 29.79 +0.02 2.0
tracked. NS-Fund didn’t exist at start of period. TgtRe2035 18.14 +0.02 2.3


  $%&  ' ( )

   


  Parnassus Fds EMAdmr 31.44 +0.19 5.6 TgtRe2040 30.96 +0.04 2.5
  *   

  )
  
+     !' ParnEqFd
PIMCO Fds Instl
40.05 -0.02 1.9 EqIncAdml 68.49 -0.27 0.2 TgtRe2045 19.37 +0.02 2.5
*  
    )
 , ' %
+ Wednesday, February 1, 2017
AllAsset NA ... NA
ExtndAdml 74.18 -0.09 2.0 TgtRe2050 31.17 +0.04 2.6

 +
!  $-'*  Fund
Net YTD
NAV Chg % Ret Fund
Net YTD
NAV Chg % Ret Fund
Net YTD
NAV Chg % Ret
HiYld 8.88 +0.01 1.2
GNMAAdml 10.51 ... -0.1 TgtRetInc 12.91 -0.01 0.8
     !  !
  ' TotRt NA ... NA GrwthAdml 59.63
HlthCareAdml r 80.93
+0.23
+0.84
4.0
3.8
TotIntBdIxInv 10.71 -0.02 -1.1
A Stock 188.50 ... 2.3 CA TF A p 7.31 -0.02 0.5 PIMCO Funds A WellsI 25.47 -0.07 ...
 

  
    DoubleLine Funds Fed TF A p 11.99 -0.04 0.5 IncomeFd NA ... NA HYCorAdml r 5.86 ... 1.0
Welltn 39.36 -0.06 0.8
American Funds Cl A TotRetBdI NA ... NA IncomeA p 2.32 ... 1.3 PIMCO Funds D InfProAd 25.68 -0.05 0.8
AmcpA p 28.17 +0.03 3.5 TotRetBdN WndsrII 35.53 ... 1.1
NA ... NA RisDv A p 52.84 -0.24 0.4 IncomeFd NA ... NA IntlGrAdml 72.53 +0.29 7.7
AMutlA p 37.30 -0.06 1.3 PIMCO Funds Instl VANGUARD INDEX FDS
FrankTemp/Franklin C ITBondAdml 11.25 -0.01 0.3
BalA p 25.23 -0.03 1.7 F Income C t 2.35 ... 1.6 IncomeFd NA ... NA ITIGradeAdml 9.65 -0.01 0.3
500 210.57 +0.11 1.9
BondA p 12.74 -0.02 0.3 Federated Instl PIMCO Funds P ExtndIstPl 183.06 -0.23 2.0


   CapIBA p 58.23 -0.09 1.0 StraValDivIS
FrankTemp/Temp A
IncomeP NA ... NA
LTGradeAdml 10.01 -0.05 -0.1
SmValAdml 52.25 -0.07 0.5
5.90 -0.04 ... GlBond A p 12.01 +0.08 0.3 MidCpAdml 167.58 -0.22 2.8

 
 CapWGrA 45.26 +0.09 3.3 Fidelity Price Funds TotBd2 10.60 -0.02 0.1
Growth A p 24.24 +0.13 2.9 MuHYAdml 11.03 ... 0.5
EupacA p 47.35 +0.25 5.0 500IdxInst BlChip 76.27 +0.13 5.0 TotIntl 15.36 +0.06 4.3
79.87 +0.04 1.9 FrankTemp/Temp Adv MuIntAdml 13.92 -0.01 0.5
    
  FdInvA p
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MuShtAdml 15.75 ... 0.3 BalInst 31.49 -0.02 1.2
Growth 56.01 +0.11 5.2
     * *
 %    
  
 ICAA p 37.23 +0.01 2.8 IntlIdxPrem r 36.59 +0.13 3.6 Harbor Funds HelSci 62.60 +0.62 6.0 PrmcpAdml r 112.46 +0.24 3.3 DevMktsIndInst 12.22 +0.04 4.0

 
 

    
  (
  IncoA p 21.93 -0.02 1.2 TMktIdxF r 65.79 +0.01 2.0 CapApInst 59.42 +0.27 4.9 InstlCapG 30.86 +0.06 5.5 REITAdml r 115.36 -1.47 -1.3 ExtndInst 74.18 -0.09 2.0
N PerA p 36.95 +0.08 4.6 TMktIdxPrem 65.79
  
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NEcoA p 37.89 +0.12 5.4 USBdIdxPrem 11.48
+0.01 2.0 IntlInst r 60.51 +0.01 3.6 IntlValEq 13.18 +0.05 2.9 SmCapAdml 62.63 -0.11 1.4 GrwthInst 59.64 +0.23 4.1
InPrSeIn 10.46 -0.02 0.8
      %
 

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InstIdx 207.80 +0.11 1.9
. %
 
    
  $  SmCpA p 47.96 +0.13 4.3 Fidelity Advisor I
MCapGro 77.85 -0.05 3.3 STIGradeAdml 10.65 ... 0.4
InstPlus 207.81 +0.11 1.9
MCapVal 29.25 -0.10 0.7 TotBdAdml 10.64 -0.02 0.1
*
    
 
 
  
  TxExA p 12.75 ... 0.3 NwInsghtI 27.93
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WshA p 41.39 -0.11 1.1 Fidelity Freedom
 

  
    N Inc 9.37 -0.01 0.2 TotIntlAdmIdx r 25.70 +0.10 4.3 MidCpInst 37.02 -0.05 2.9
AMG Managers Funds FF2020 15.31 +0.03 2.1 J OverS SF r 9.45 +0.03 4.2 TotStAdml 57.16 ... 1.9 MidCpIstPl 182.58 -0.23 2.9
YacktmanFd I 22.05 -0.04 3.1 FF2025 13.14 +0.03 2.3 R2015 14.42 ... 1.7
John Hancock Class 1 TxMIn r 12.21 +0.04 4.0 SmCapInst 62.63 -0.11 1.4
FF2030 16.20 +0.03 2.6 R2020 20.83 +0.01 2.1
B FreedomK2020 14.25 +0.02 2.1
LSBalncd 14.53 +0.01 2.0
R2025 15.86 +0.01 2.3
ValAdml 36.37 -0.09 0.4 STIGradeInst 10.65 ... 0.4
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Baird Funds FreedomK2025 14.92 +0.03 2.3 R2030 23.11 +0.03 2.6


   AggBdInst 10.71 -0.01 0.3 FreedomK2030 15.27
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+0.03 2.6 R2035 16.74 +0.02 2.8
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 CorBdInst 11.04 -0.01 0.3 FreedomK2035 15.86 +0.04 2.9 R2040 23.89 +0.03 2.9
JPMorgan Funds WndsrAdml 70.60 +0.20 2.0 TotIntBdIdxInst 32.14 -0.06 -1.1
BlackRock Funds A FreedomK2040 15.89 +0.04 2.9 SmCapStk 45.43 -0.07 1.1
GlblAlloc p MdCpVal L 36.82 -0.11 1.2 VANGUARD FDS TotIntlInstIdx r 102.76 +0.38 4.3
18.55 +0.05 2.0 Fidelity Invest SmCapVal 44.93 -0.06 -0.4
AVIATION BUSINESS OPPORTUNITY BlackRock Funds C JPMorgan R Class DivdGro 23.59 -0.13 0.7 TotItlInstPlId r 102.78 +0.38 4.3
Balanc 22.49 +0.03 2.1 Value 34.07 +0.03 1.2
GlblAlloc t 16.88 +0.05 2.0 BluCh CoreBond 11.50 -0.01 0.2 GNMA 10.51 ... -0.1 TotStInst 57.17 +0.01 1.9
71.10 +0.48 5.6 Prudential Cl Z & I
BlackRock Funds Inst JPMorgan Select Cls TRBdZ HlthCare r 191.89 +2.01 3.9 ValueInst 36.37 -0.09 0.4
Contra 103.07 +0.31 4.7 14.11 -0.01 0.5
CoreBond 11.49 -0.01 0.3 INSTTRF2020 20.44 ... 1.5
FALCON 2000 AVAILABLE EqtyDivd 22.56 -0.01 ... ContraK 102.99 +0.30 4.7
USLgCpCorPls 29.06 +0.12 3.3 S INSTTRF2025 20.46 +0.01 1.7
W
GlblAlloc 18.65 +0.05 2.0 CpInc r 9.94 +0.03 2.7
INSTTRF2030 20.45 +0.01 2.0 Western Asset
Excellent Condition HiYldBd 7.71 +0.01 1.4 DivIntl 34.49 +0.19 3.6 L Schwab Funds
INSTTRF2035 20.44 +0.01 2.2 CorePlusBdI NA ... NA
StratIncOpptyIns 9.87 ... 0.6 DivIntlK r 34.41 +0.19 3.6 S&P Sel 35.09 +0.02 1.9
Price Reduction $3MM OBO GroCo 143.72 +1.06 5.1 Lazard Instl
10 Seats, Ideal for Charter D GrowCoK 143.58 +1.07 5.1 EmgMktEq 16.79 +0.04 5.2

PHILIP RUSHTON AVIATRADE INC Del Invest Instl InvGB 7.80 -0.01 0.3 Loomis Sayles Fds IPO Scorecard
Value 19.58 -0.06 -0.5 InvGrBd LSBondI 13.81 ... 2.1
1-908-696-1174 11.11 -0.01 0.4
Lord Abbett A
Performance of IPOs, most-recent listed first
Dimensional Fds LowP r 50.18 +0.12 1.4
philiprushton@aviatrade.aero ShtDurIncmA p 4.31 ... 0.3
% Chg From % Chg From
5GlbFxdInc NA ... NA LowPriStkK r 50.14 +0.12 1.4 Company SYMBOL Wed3s Offer 1st-day Company SYMBOL Wed3s Offer 1st-day
EmgMktVa NA ... NA MagIn 93.99 +0.43 2.9 Lord Abbett F
IPO date/Offer price close ($) price close IPO date/Offer price close ($) price close
EmMktCorEq NA ... NA OTC 88.74 +0.67 6.5 ShtDurIncm 4.31 ... 0.6
TRAVEL IntlCoreEq NA ... NA Puritn
Invitation Homes 20.00 ... ... REV Grp 25.25 14.8 1.0
21.10 +0.04 2.5
IntSmCo NA ... NA SrsEmrgMktF 16.88 +0.12 7.2
M INVH Feb. 1/$20.00 REVG Jan. 27/$22.00
IntSmVa NA ... NA SrsInvGrdF 11.11 -0.02 0.3 Metropolitan West Laureate Edu 13.25 –5.4 ... AnaptysBio 16.62 10.8 –2.2
US CoreEq1 NA ... NA TotalBond 10.54 -0.01 0.4 TotRetBd NA ... NA LAUR Feb. 1/$14.00 ANAB Jan. 26/$15.00
Save Up To 60% PROFITABLE URGENT US CoreEq2 NA ... NA Fidelity Selects TotRetBdI NA ... NA Jagged Peak Energy 14.75 –1.7 2.9 ObsEva 11.30 –24.7 –3.0
US Small NA ... NA Biotech r 186.44 +1.43 7.1 TRBdPlan NA ... NA JAG Jan. 27/$15.00 OBSV Jan. 26/$15.00
First & Business MFS Funds Class A
INTERNATIONAL CARE CENTERS US SmCpVal
US TgdVal
NA
NA
... NA First Eagle Funds
... NA GlbA 55.78 +0.05 2.8 ValueA p 36.37 -0.10 0.9
JELD-WEN Holding 27.05 17.6 3.6 Keane Grp 22.18 16.7 2.4
Major Airlines, Corporate Travel MFS Funds Class I
JELD Jan. 27/$23.00 FRAC Jan. 20/$19.00
USLgVa NA ... NA FPA Funds
Never Fly Coach Again! for Sale (Southeast) Dodge & Cox FPACres 33.11 +0.11 1.5 ValueI 36.58 -0.09 0.9 Jounce Thera 17.09 6.8 –0.9 trivago 11.48 4.4 –3.1
www.cooktravel.net Balanced 105.16 -0.02 1.8 FrankTemp/Frank Adv Mutual Series
(800) 435-8776
info@acshurgentcare.com Income 13.63 -0.01 0.3 IncomeAdv 2.30 -0.01 1.3 GlbDiscA 31.00 -0.02 1.4
JNCE Jan. 27/$16.00 TRVG Dec. 16/$11.00
Intl Stk 40.05 +0.31 5.1 FrankTemp/Franklin A GlbDiscz 31.57 -0.02 1.4 Sources: WSJ Market Data Group; FactSet Research Systems
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
THE WALL STREET JOURNAL.
Home Bias
In times of political jitters,
investors prefer familiar markets.
After Brexit, American 2%
0
investors fled Europe
much more quickly than
European ones.
–2
–4
Net four-week flows into
European equity funds,
as a share of assets
–6
–8
–10
managed by those funds
2016
Donald Trump's 1.2%
election was followed 0.8
by a burst in optimism 0.4
about global equities, 0 Invitation Homes Inc.
but only in the U.S. –0.4
Flows into global equity
–0.8
funds
–1.2
2016
Source: EPFR Global
Investors Remain Rooted at Home
As global politics heat
up, some prefer
investments in markets
that they know well
BY JON SINDREU
Markets have become truly
global, but where investors
live may be increasingly shap-
ing their decisions.
Investors are likely to be
less concerned about the polit-
ical risks they see in many
Western countries if they live
in the country causing con-
cern. Some signs suggest that,
faced with complex foreign
politics, they prefer to stick to
more-familiar markets.
This year, elections in
France, the Netherlands, and
potentially Italy could affect
the future of the eurozone,
while negotiations for Britain’s
exit from the European Union
are expected to begin. Some
investors worry that President
Donald Trump may enact pro-
AHEAD OF THE TAPE | Steven Russolillo
Yet Another
Reason to Worry
About Chipotle
Chipotle
Mexican
Grill Inc. has
a guacamole
problem.
President
Donald
Trump’s border tax could only
add to the burrito chain’s
struggles, which began in
2015 with a string of food-
borne illness outbreaks and
continued this past quarter
due to high avocado prices.
Thursday’s fourth-quarter
earnings report should un-
derline the disappointing re-
sults it preannounced last
month. Chipotle said earn-
ings per share fell to be-
tween 50 cents and 58 cents
a share, down from $2.17 a
year ago. Analysts peg their
estimate at 56 cents a share
and had expected 97 cents
before the preannouncement.
Chipotle cited California’s
drought and a labor strike in
Mexico that prompted a
shortage of avocados. Prices
jumped to as much as $75 a
case, more than double the
usual. Chipotle says prices
have since come back to
more reasonable levels.
Chipotle has more than
2,200 restaurants, each of
which uses about 45,000
pounds of avocados annually.
It gets many avocados and
tomatoes from Mexico. If the
Trump administration’s pro-
posed 20% import tax on
goods from Mexico includes
agricultural products, Chi-
potle could see costs rise.
The tax, designed to pay for
Mr. Trump’s border wall,
would have a more lasting
impact on the company than
a short-term spike in avo-
cado prices.
Maxim Group analyst Ste-
phen Anderson suspects avo-
cados and tomatoes together
represent roughly 10% of
Chipotle’s food costs. The tax
would push costs higher, cut-
ting annual earnings per
share by as much as 24
cents, he estimates, or about
3% from analysts’ 2017 con-
sensus estimate.
That alone isn’t huge. But
the sentiment around the
proposed tariff already has
* * * *
U.S.-domiciled
Europe-domiciled
June 23: Brexit vote
’17
Nov. 8: U.S. election
’17
THE WALL STREET JOURNAL.
tectionist policies in the U.S.
“Different regions and dif-
ferent countries often view a
very similar event very, very
differently,” said Michael
Kelly, head of the multiasset
team at PineBridge Invest-
ments, which manages
roughly $82.6 billion.
Investors said they are hav-
ing to become experts on for-
eign politics. Faced with this
prospect, many are withdraw-
ing to more familiar shores,
and selling abroad in the short
term. They have often been
getting it wrong.
In December, Italians voted
against proposed constitu-
tional changes, triggering the
resignation of Prime Minister
Matteo Renzi. Many interna-
tional fund managers had
warned that such a result
would threaten the existence
of the eurozone, but most do-
mestic investors were con-
vinced little would change.
“All the major investors,
who know very little about our
country, made this connection
hurt the stock prices of com-
panies potentially affected by
it, such as Constellation
Brands Inc., which imports
Mexican beer, and could
weigh further on Chipotle.
Shares are down more
than 40% from Chipotle’s all-
time high above $750 in the
summer of 2015 amid a
slower-than-expected recov-
ery. Marketing and promo-
tions designed to win back
customers have been pricey,
yielding mixed results. Ana-
lysts estimate that fourth-
quarter same-store sales fell
5%, a fifth consecutive quar-
ter in the red. They are ex-
pected to turn positive in the
first quarter.
A board shake-up has ig-
nited some market optimism.
In December, hedge-fund
manager William Ackman
and Chipotle reached a set-
tlement that gave the activ-
ist’s firm two seats on the
board. Chipotle also named
two other directors. Its
shares have risen about 17%
over the past three months.
But full-year profit isn’t fore-
cast to return to pre-disease-
outbreak levels until 2020.
Plenty of investors are still
betting against it. Some 18%
of Chipotle’s shares are sold
short. While that is down
from a recent high of 21% in
November, it is well above a
low of 2% two years ago.
Its prospective multiple of
enterprise value to sales is
2.6 times. That is cheaper
than its average over the past
decade, but not by much.
Chipotle is still too spicy.
Bowled Over
Chipotle’s earnings per share
$20
15
10
5 put edged lower last week.
0 $1.07, or 2%, to $53.88 a barrel
2006 ’10 ’15 ’20
Note: 2016 includes 4Q analysts’ consensus
estimate; 2017-2020 are consensus estimates.
Source: FactSet
THE WALL STREET JOURNAL.
EQUITIES
‘Different countries often view a very similar event very, very differently,’ says Michael Kelly.
Above, National Front leader Marine Le Pen speaks at a meeting in France ahead of a spring vote.
between losing the referen-
dum and the consequences for
the eurozone,” said Paolo Ba-
silico, chief executive at Milan-
based Kairos Partners SGR
SpA. “There’s a historical diffi-
culty understanding Italian
politics,” he said of a country
that has had 65 different gov-
ernments in 70 years.
Since the referendum, It-
aly’s FTSE MIB index is up al-
most 10%.
The dire predictions of a
collapse in British assets after
Brexit have also proved incor-
rect, despite a 17% plummet by
the pound following the refer-
endum on June 23. That may
have been because regional in-
vestors kept a cooler head,
data suggest. In the four
weeks after Brexit, U.S.-domi-
ciled funds investing in Euro-
pean stocks saw outflows of
almost 9% of the total funds
they manage, figures by fund
tracker EPFR Global show.
That compared with 1.7% for
Europe-domiciled funds in-
vesting in the region’s shares.
Shares of iPhone maker Apple rose 6.1%, and technology shares were among the biggest gainers.
Apple Pushes Up Tech Stocks
BY AARON KURILOFF
AND MIKE BIRD
A surge in Apple shares
boosted U.S. technology stocks
as major indexes edged higher
Wednesday.
Apple soared 6.1% after the
technology giant late Tuesday
reported strong demand for
the iPhone 7, which helped
boost quarterly revenue to a
record $78.4 billion and snap
three consecutive quarters of
revenue declines.
The iPhone maker’s climb
helped lift the Dow Jones In-
dustrial Average, which rose
26.85 points, or 0.1%, to
19890.94. The S&P 500 edged
up 0.68 point, or less than
0.1%, to 2279.55, ending a four-
session slide, and the Nasdaq
Composite added 27.86 points,
or 0.5%, to 5642.65.
Apple rose $7.40 to $128.75,
adding almost 51 points to the
Dow industrials and boosting
the tech-oriented Nasdaq,
which has outperformed its
Crude Prices Rise on Hopeful Signs
BY ALISON SIDER
Oil prices rose to their
highest level in nearly a
month amid signs that major
oil exporters are cutting pro-
duction and federal data
showing that U.S. crude out-
U.S. crude prices gained
on the New York Mercantile
Exchange, the highest settle-
ment price since Jan. 6. Brent,
the global benchmark, rose
$1.22, or 2.2%, to $56.80 on
The British themselves
were similarly more relaxed
about potential risks. Their
spending has helped the U.K.
economy beat expectations.
Following Mr. Trump’s elec-
tion victory in November, U.S.
investors appeared to hold a
more positive view on his po-
tential impact on the global
economy than those in Europe.
“A lot of home bias has led to
the dramatic outperformance
of U.S. assets,” said Neil
Dwane, London-based global
strategist at Allianz Global In-
vestors.
In the week after Mr.
Trump’s win, U.S.-domiciled
funds investing in global
stocks saw inflows of $8.2 bil-
lion, roughly 0.2% of the total
money they manage. By con-
trast, European-based global
stock funds had a $6.1 billion
outflow, or about 0.3% of as-
sets under management.
While it is hard to be con-
clusive based on fund-flow
data, anecdotal evidence sug-
gests Europe-based investors
peers in 2017 after largely lag-
ging behind a postelection
rally that lifted shares of fi-
nancial and industrial compa-
nies. Tech stocks were among
the biggest gainers in the S&P
500 Wednesday, rising 0.7%.
Apple’s earnings were among
the corporate reports driving
moves Wednesday, some inves-
tors and analysts said, marking
a return to fundamentals after
concerns about political conflict
helped send markets lower in
recent sessions.
“There's definitely a more
optimistic tone from manage-
ment teams,” said David Lefko-
witz, senior equity strategist at
UBS Wealth Management
Americas. “We think earnings
growth is going to continue to
accelerate, and that’s going to
be one of the key drivers of fur-
ther gains in equity markets.”
Utility stocks weighed on
the S&P 500, falling 1.7%. The
yield on the 10-year Treasury
note rose to 2.466% from
2.451% Tuesday. Bond yields
COMMODITIES
ICE Futures Europe.
Oil prices have traded in a
tight range in recent weeks, as
traders weighed planned out-
put cuts by major exporters
against the possibility of a re-
bound in U.S. drilling.
The decline in the U.S. dol-
lar helped lift the market
Wednesday. Oil prices rose af-
ter a statement by the Federal
Reserve offered little hint as
to when the next interest-rate
increase could come. The dol-
lar’s move lower makes oil less
expensive for foreign buyers, a
Thursday, February 2, 2017 | B11
IPOS
Muted
Welcome
For IPO
Of Big
Landlord
SYLVAIN LEFEVRE/GETTY IMAGES
BY CORRIE DRIEBUSCH
AND RYAN DEZEMBER
shares ended flat in their
market debut Wednesday, as
owner Blackstone Group LP
takes a step toward cashing
in its big bet on housing.
Shares of the real-estate
investment trust opened at
$20.10, above the initial-pub-
lic-offering price of $20, and
traded in a narrow range of
$19.80 to $20.42 during the
session. The stock ended the
are more negative on the U.S. day unchanged at $20, giving
president than those sitting in the company a market value
America. of more than $6 billion, ac-
PineBridge’s Mr. Kelly dis- cording to securities filings.
likes Mr. Trump’s statements On Tuesday, Invitation
on free trade. But the New Homes raised $1.54 billion in
Jersey resident believes the its initial public offering,
Republican president’s plans which represents the largest
to cut taxes and increase in- U.S.-listed IPO in more than a
frastructure spending will year. The real-estate invest-
have a positive effect on the ment trust sold 77 million
global economy. shares at $20 apiece.
More recently, European in-
vestors have started to invest
back home despite looming
elections that could shake up
the local landscape.
France’s Amundi, one of Eu-
rope’s biggest fund managers,
$1.54B
Amount raised by Invitation
is buying French government Homes in its initial offering
bonds and selling German
bunds. Some U.S. investors
have been concerned that far-
right leader Marine Le Pen Invitation Homes is the
might win the French presi- end result of the biggest
dency in the spring, but homebuying spree in history.
Amundi is less worried. Ms. Le Starting in 2012 with a home
Pen advocates taking France in Phoenix, Blackstone spent
out of the eurozone. some $10 billion buying and
—James Mackintosh fixing up homes to rent. For
contributed to this article. stretches, the private-equity
giant spent $150 million a
week on foreclosed homes, of-
ten buying them sight unseen.
The company now owns
and rents 48,431 houses in 13
markets, from Seattle to
south Florida, according to
Invitation’s offering docu-
ment. Blackstone Group didn’t
plan to sell any of its roughly
70% stake in the IPO, the fil-
ing said, but the listing will
enable it to begin cashing out
JOHN TAGGART/BLOOMBERG NEWS
of its investment in the fu-
ture.
The IPO is also a test of in-
vestors’ interest in the rental-
home business. Invitation is
part of a broader bet on Wall
Street that homeownership
will remain out of reach for
many Americans. Invitation
will join its two largest
rental-home rivals on the
stock market. Shares of
American Homes 4 Rent and
Colony Starwood Homes
made their debuts in recent
rise as prices fall. years to tepid demand but
Moves were muted after the surged last year as the home-
Federal Reserve’s policy state- ownership rate fell to its low-
ment left interest rates un- est level in at least 50 years,
changed and offered little sign according to U.S. Census Bu-
of when the central bank reau data.
might next raise rates. Homeownership has de-
Investors are anticipating clined since the housing crisis
fewer increases over the next amid stricter lending stan-
two years than Fed officials, dards, mounting student debt
some analysts said, a gap that and potential buyers whose
shows “there is a kind of fra- savings and credit diminished
gility in the U.S. markets,” said during the recession. But
Franck Dixmier, global head of some investors have ques-
fixed income at Allianz Global tioned whether the growth of
Investors, in an email. “It is in Invitation and its rivals will
the Fed’s interest to be more be limited now that the fore-
precise about the future pace closure crisis is over and
of rate increases,” he said. home prices in many markets
The Stoxx Europe 600 index have exceeded their 2006
climbed 0.9%, and France’s highs.
CAC-40 rose 1% after strong Last week, Invitation won
European business surveys an important endorsement
helped buoy stocks. from Fannie Mae, when the
Early Thursday, Japan’s Nik- government-controlled mort-
kei Stock Average was down gage-finance company said it
0.3%, Hong Kong’s Hang Seng would guarantee as much as
Index was down 0.5% but $1 billion of the company’s
South Korea’s Kospi was up debt, a development that will
0.1%. likely mean cheaper borrow-
ing costs for Invitation and
potentially its rivals.
scenario that often causes
prices to rise.
Market participants have
been watching data on produc-
RICHARD DREW/ASSOCIATED PRESS
tion by members of the Organ-
ization of the Petroleum Ex-
porting Countries and other
major exporters. Indications
that they are on track to meet
most of their commitment to
reduce daily oil output have
bolstered prices this week.
Meanwhile, the U.S. Energy
Information Administration Invitation Homes CEO John
reported a 46,000 barrel-a-day Bartling Jr. rang a ceremonial
decline in U.S. oil production. bell at the NYSE on Wednesday.
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
B12 | Thursday, February 2, 2017
Greek Debt Fears Return as Talks Stall
Worries about default
renewed by deadlock
with creditors, IMF;
a familiar standoff
BY TASOS VOSSOS
AND NEKTARIA STAMOULI
Investors are dumping
Greek bonds, fearing that Ath-
ens will be unable to pay debt
that comes due this summer.
The selloff comes as the
Greek government is again at
a standstill in negotiations
with its creditors in the euro-
zone and at the International
Monetary Fund. Athens needs
to break the deadlock and se-
cure more aid before about €6
billion ($6.5 billion) in debt
has to be repaid in July.
Complicating matters is a
scheduled IMF board meeting
next week and a lack of clarity
over what position the U.S.—
which has the largest vote at
the fund—will take under the
Trump administration.
One piece of the July debt
is a bond owed to private
creditors. The yield on that
bond was under 6% last
week—consistent with a
highly risky security. But that
yield more than doubled in
the last few days of trading,
a sign that investors see a se-
rious probability of default.
On Wednesday, the bid yield
on the bond—the level at
which traders offer to buy—
spiked above 15% on
Tradeweb. It ended the day
at 9.5%. Rising yields mean
bond prices are falling.
Greece can hold out with-
out fresh aid until July, but it
urgently needs a path for-
ward: Starting in mid-March,
elections in Europe will dom-
inate the Continent’s agenda
and likely dull any political
appetite for helping Greece.
The deadlock is familiar.
The IMF says that Greece’s
debt is too high for it to re-
ceive more aid in the form of
loans. Eurozone creditors, led
by Germany, won’t commit to
Email: heard@wsj.com
Pressure on Active Fund Managers
The shift into simple, low-
cost investment strategies,
which has been rocking the
asset-management industry,
shows no sign of letting up.
The market rally since the
election, which boosted per-
formance for many active
managers, and the prospect
of some regulatory relief un-
der the new administration,
have spurred hope that these
funds could regain some lost
ground against their passive
rivals. Some active managers,
particularly value-oriented
ones, have indeed performed
well since the election as
out-of-favor sectors such as
financials have surged.
But fourth-quarter results
from a handful of large,
listed asset managers show
there has been no letup in
aggregate outflows from ac-
tively managed funds. Frank-
lin Resources and T. Rowe
Price saw net fund outflows
of $14.4 billion and $5 billion,
respectively, in the period.
Clearly, the long-term trend
toward low-cost, transparent
funds remains intact. This
was expected to be reinforced
by new Obama-administration
fiduciary rules set to take ef-
Investors Split Their Bets on Federal Reserve and Trump
Investors are making two
different bets on the markets
and on the Federal Reserve.
They can be right on only
one of them.
Fed policy makers on
Wednesday left their target
range on overnight rates un-
changed, while making it
clear that they are taking a
wait-and-see approach on
their next interest-rate in-
crease. The statement they
released following their two-
day meeting noted that,
other than improved senti-
ment readings, the economy
doesn’t look too different
than it did when they raised
rates in December. The job
market is good, inflation is
Flaring Up
Yields of a Greek bond maturing in July have jumped,
signaling investor concern that the country may default.
Yield of the July 2017 bond
10%
8
6 serve kept interest rates un-
4 The yield on the 10-year
2 day, though down from
0 The yield on the two-year
Aug. Sept.
Greece’s debt load remains extremely high.
Government consolidated gross debt as percentage of GDP
180%
160
140
120
100
2007 ’08 ’09
Sources: TradeWeb (yields); Eurostat (debt to GDP); Greece’s Public Debt Management Agency; International
Monetary Fund; the Irish Statute Book; European Commission (2017 maturities)
major debt relief. Greece it-
self is resistant to budget
cuts. Germany says it won’t
continue to help Greece with-
out the IMF alongside. The
IMF has so far stayed out of
Greece’s latest bailout.
The atmosphere worsened
after a statement on Tuesday
by a member of parliament
from the ruling Syriza party
that a debate over Greece’s
membership in the euro
shouldn’t be taboo. Quitting
the euro would almost cer-
tainly lead to substantial
losses for holders of euro-de-
nominated Greek debt.
“I believe there has to be a
political and national discus-
sion the likes of which hasn't
HEARD ON THE STREET
Target Dependence
T. Rowe Price net flows into target-date vs. other funds
$20 billion
10
0
–10
–20
Outflows
–30
2013 ’14
Source: Goldman Sachs
fect later this year, which may
or may not be altered by the
Trump administration. But
the trend was already in place
before the rules.
T. Rowe Price’s fourth-
quarter results show passive
vehicles encroaching further.
The company said it saw $63
million of outflows from its
actively managed target-date
funds, the first quarterly out-
flow ever from this category.
Target-date funds automat-
ically rebalance investors’
portfolios based on age and
Warming Up
Treasury market’s implied
annual inflation expectations
over the next five years
2.0%
1.5
1.0
0.5
0
2016
Source: Treasury Department
picking up but still low, con-
sumer spending is OK and
business spending is weak.
Investors are more opti-
mistic. The stock and bond
markets show they believe
MARKETS
Oct. Nov.
’10 ’11 ’12 ’13
taken place during the last
seven years,” said Nikos Xyda-
kis, a former minister in the
Syriza government, though he
later clarified his comments by
15%
Yield at one point Wednesday on
a Greek bond maturing in July
restating his support for
Greece’s eurozone membership.
Still, his comments followed
reports in German media ear-
lier this week that suggested
FINANCIAL ANALYSIS & COMMENTARY
Inflows Target-date flows
Other funds’ flows
’15 ’16
THE WALL STREET JOURNAL.
date of retirement. They con-
stitute a large part of the re-
tirement-savings industry,
with a total of $868 billion of
assets under management at
the end of last year, according
to Simfund, part of market-re-
search firm Strategic Insight.
T. Rowe Price’s strong
franchise providing these
funds for employer 401(k)
plans has until recently
helped protect it from low-
cost competition. Indeed,
without target-date funds,
the firm would have had net
that President Donald Trump
will craft a tax-cut and
spending package that will
lift spending and (perhaps
with an assist from taxes on
imports) push prices higher.
Since the election, the S&P
500 has risen 6.4%, while the
Treasury market’s implied
forecast for inflation over
the next five years has gone
from 1.57% to 1.94%.
’17 The reason for the differ-
ence is investors have baked
into their forecasts Mr.
Trump’s stimulus and bid up
markets in anticipation. The
Fed has to be more cautious
and can’t act based on poli-
cies that Mr. Trump and con-
gressional Republicans ha-
Dec. Jan. ’17
’14 ’15 ’16
€1= $1.08
the German government is
warming to the idea of Greece
abandoning the euro, the so-
called Grexit. The trigger-
happy nature of investors in
the Greek bond market inten-
sified the selloff.
“A big part of trading vol-
ume in the Greek market
comes from active accounts
that follow the news flow,”
said Argyrios Gkonis, an ana-
lyst in Axia Ventures’ research
department in Athens.
Tension around Greece’s fi-
nancial position has been
building for some time. Rat-
ings firm Moody’s Investors
Service said in December that
a delay in closing the review
of Greece’s bailout program
outflows every year since
2013, according to analysts
at Goldman Sachs.
At the end of last year, T.
Rowe Price was the third-
largest provider of target-
date funds, with $148 billion
of assets under management,
according to Simfund. But
Vanguard, which offers tar-
get-date funds that allocate
investors’ money passively
into low-cost index funds, was
the largest with $280 billion.
Index-based target-date
funds have been taking
share, growing by around
15% a year since 2015, com-
pared with 6% for more ac-
tive target-date funds, ac-
cording to Goldman Sachs.
Cost is likely the main rea-
son. T. Rowe Price’s target-
date funds have expense ra-
tios of around 0.7%, according
to Morningstar, compared
with just 0.15% for Vanguard.
T. Rowe Price shares are
down 9.3% since their results
last week, erasing the bulk of
their gains since the election.
With the passive surge show-
ing no signs of abating, in-
vestors should remain wary
of the shares of listed active
managers. —Aaron Back
ven’t even put together yet.
It won’t be until Mr. Trump
puts his signature to those
policies that the Fed will be
able to incorporate them
into their forecasts and set
policy appropriately.
That is where investors
are making different bets.
The stock and bond markets
show their optimism about
Mr. Trump’s policies. But the
markets that predict Fed
moves are less optimistic.
Futures point to the cen-
tral bank putting through
just two quarter-point rate
increases this year versus
the Fed’s projection for three
increases.
It isn’t hard to come up
THE WALL STREET JOURNAL.
Greece has billions of debt
repayments due this summer.
Greece’s debt due in 2017*
European Central Bank
€5.3 billion
European Stability Mechanism
€3.2 billion
Private investors
€2.1 billion
International Monetary Fund
€736.7 million
*Excluding Treasury bonds and $10 million
owed to European Investment Bank
THE WALL STREET JOURNAL.
“increases the risks that re-
payments to bondholders due
in July 2017 may be missed.”
The review is pending.
European officials are
scheduled to meet next week,
and if no headway in negotia-
tions is made then, talks
could stall until after the
Dutch elections, Deutsche
Bank said in a note to inves-
tors this week. Voters in the
Netherlands are scheduled to
go to the polls on March 15.
Greece and its creditors have
run up against deadlines many
times in the past seven years,
and yields have soared and
sunk as talks stalled and re-
started. Greece defaulted once
on private creditors, in 2012.
OVERHEARD
Are history buffs lazier
than “Star Wars” fanatics?
Electronic Arts’ recent re-
sults suggest so.
The videogame publisher
noted a distinct benefit from
its World War I-themed
shooter game “Battlefield 1”
over the holidays. Many more
copies were sold as digital
downloads compared to last
year’s big release: “Star Wars
Battlefront.”
But the rate of downloads
is more a matter of platform
over taste. Electronic Arts’
“Battlefield” franchise is pop-
ular with personal-computer
gamers, where most games
are downloaded.
Last year’s “Star Wars” ti-
tle came up short on the digi-
tal side due in part to its
popularity as a holiday gift
for console players.
But “Battlefield 1” helped
Electronic Arts cross another
milestone early; about 32% of
the company’s new games
were sold as downloads in
2016, compared with 24% the
year before.
In today’s game business,
it helps to keep players in
their seats.
with scenarios where inves-
tors are right that the Fed
would raise rates less than
expected. Say that Mr.
Trump’s tax-cut and spend-
ing plans are smaller than
expected, or that trade and
immigration restrictions be-
gin to threaten growth. Or
maybe that just because the
White House has a new occu-
pant doesn’t mean that the
economy has lost its ability
to disappoint.
If any of those scenarios
turn out right, then investors’
bet on the markets would be
wrong, and stocks and bond
yields would reverse their
postelection gains.
—Justin Lahart
Yields Pare Gains
After Fed Keeps
Rate Stance Steady
U.S. government bonds
pulled back modestly
Wednesday as investors re-
acted to strong economic
data before the Federal Re-
changed at the end of its
two-day policy meeting.
Treasury note settled at
2.466%, up from 2.451% Tues-
2.492% before the Fed re-
leased its statement.
note, which is highly sensitive
to the Fed’s policy outlook,
settled at 1.212%, compared
with 1.204% Tuesday and
1.240% before the statement.
Yields, which rise when
bond prices fall, jumped in the
morning after a report on pri-
vate payrolls showed that
246,000 jobs were added last
month. That was well above
the 164,000 expected by
economists polled by The
Wall Street Journal, and a
possible sign that the more
closely watched jobs data
compiled by the Labor De-
partment could also be robust
when released Friday.
The private payrolls data
“caught the market by sur-
prise,” said Subadra Rajappa,
head of U.S. rates strategy at
Société Générale SA. “The real
risk going forward is the po-
tential for the Fed to turn a
little bit more hawkish sooner
than the market expects.”
Fed-funds futures, a popu-
lar market for investors to
place bets on the Fed’s rate
policy, showed Wednesday af-
ternoon a 36% probability for
the Fed to raise rates at least
by a quarter of a percentage
point by its May meeting, ac-
cording to CME Group. The
chances were 38% Tuesday.
—Sam Goldfarb
WSJ.com/Heard
Have We
Seen Peak
Facebook?
It is time to focus on qual-
ity rather than quantity at
Facebook.
The social-networking
company’s fourth-quarter
revenue and earnings, an-
nounced Wednes-
day, were well above ana-
lysts’ expectations, but the
nature of its growth may
soon struggle to support its
lofty valuation.
Facebook’s monthly active
user base rose 17% year over
year to 1.86 billion users, ac-
celerating from the third
quarter’s 15% growth rate.
That was a remarkable feat,
but the growth in Facebook’s
average revenue per user de-
celerated to 29% from the
prior quarter’s 35%.
The trend explains why
the company, with its shares
fetching a still-rich 32 times
2017 earnings estimates, is
pushing aggressively into
video. Facebook said in No-
vember that ad-revenue
growth would slow meaning-
fully after mid-2017. It also
said spending would ramp
up significantly this year.
The company already domi-
nates the digital advertising
market. To achieve its next
leg of growth, it must win
over ad dollars from TV.
Facebook has been pro-
moting its live-streaming ca-
pabilities and is testing a
new video-ad format. The
company is also developing a
video-centric app for TV set-
top boxes and is discussing
licensing long-form TV-style
programming from media
companies, The Wall Street
Journal reported. But Face-
book faces stiff competition
for content and viewing
hours from traditional TV
and more established video-
streaming platforms.
For investors, Facebook’s
next big test will require
more than new users.
—Miriam Gottfried