For personal, non-commercial use only. Do not edit, alter or reproduce.
For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.
DJIA 24667.78 À 306.33 1.3%
What’s
News
Business & Finance
T he Fed proposed easing
the Volcker rule, which
was designed to curb risky
trading by big banks in the
wake of the financial crisis. A1
 Gross’s flagship bond fund
fell more than 3% Tuesday,
in an apparent hit from the
Italian market tumult. A1
 Toyota shipments from
Japan to the U.S. rose 22%
in April, highlighting the
threat the auto maker could
face from higher tariffs. B1
 Buffett offered to invest
$3 billion in Uber earlier
this year, but the two sides
couldn’t agree on terms. B1
 Kuwait and Iran are lead-
ing an OPEC faction upset
about a Saudi-Russian pact to
ease up on oil-output cuts. B11
 Stocks snapped a losing
streak as fears about Italy
eased. The Dow rose 306.33
points to 24667.78. B11
 A deadly E. coli outbreak
linked to romaine lettuce
has led to millions in losses
for growers and sellers. B1
 Canadian Pacific and the
union representing conduc-
tors and engineers reached a
deal, ending a brief strike. B3
 Dick’s profit and sales rose,
allaying concerns about the
sporting-goods chain’s gun
curbs. Shares surged 26%. B3
 Walmart will subsidize
workers’ online college tu-
ition at three schools. B6
 Citigroup spent $8 bil-
lion on technology in 2017,
as big banks spend to keep
ahead of upstart rivals. B10
 Fox shareholders will
vote July 10 on a proposed
asset sale to Disney. B3
World-Wide
 The Trump administration
plans to make good on its
threat to impose tariffs on
European steel and alumi-
num after failing to win con-
cessions from the EU. A1
 The U.S. decision to move
forward with tariffs against
China is putting planned
weekend talks at risk. A2
 Pompeo began talks with a
senior North Korean official,
as the administration tries
to establish whether there is
enough common ground to
proceed with a summit. A7
 A senior GOP congressman
disputed Trump’s claim that
“spies” infiltrated his cam-
paign and said the FBI’s Rus-
sia probe was legitimate. A4
 Stormy Daniels’ attorney
withdrew a bid to participate
in proceedings related to a
probe of Trump’s lawyer. A4
 Trump’s criticism pushed
the NFL to shift its anthem
stance, depositions in the
Kaepernick case indicate. A6
 A political impasse in It-
aly continued as the nation’s
president searched for a way
to avoid fresh elections. A9
 The U.S. has retooled its
aerial bombing in Afghani-
stan to target the Taliban’s rev-
enue, not just its fighters. A7
 Virginia is poised to ex-
pand Medicaid after a hard-
fought legislative battle. A4
 Harvey Weinstein was in-
dicted by a grand jury on
charges of rape and perpe-
trating a criminal sex act. A3
 A St. Louis prosecutor
dropped campaign-finance-
related charges against Mis-
souri Gov. Greitens. A4
CONTENTS
Business News.. B3,6
Capital Account.... A2
Crossword.............. A14
Heard on Street. B12
Life & Arts....... A11-13
Management.......... B5
s Copyright 2018 Dow Jones &
Company. All Rights Reserved
* * * * * *
NASDAQ 7462.45 À 0.9%
Russian Journalist, Presumed Killed, Stuns Press Conference
FROM LEFT: PYOTR SIVKOV/TASS/ZUMA PRESS; SERGEI SUPINSKY/AGENCE FRANCE-PRESSE/GETTY IMAGES
BACK FROM THE DEAD: Russian journalist Arkady Babchenko was reported to have been shot and killed, but it was a ruse staged by
Ukrainian authorities to catch organizers of an alleged plot on his life. Left, a memorial created after his supposed death. A9
Bill Gross Fund Takes Hit From Italy
BY JUSTIN BAER
Bill Gross’s flagship fund
dropped more than 3% Tues-
day, an unusually big decline
for a bond fund in just one
day, and a sign of how the
shockwaves from this week’s
sudden moves in European
markets are reverberating.
The Janus Henderson
Global Unconstrained Bond
Fund may have been wrong-
footed by a bet that German
bond prices would fall relative
to their Italian counterparts,
analysts said.
Toyota Imports Pose Conundrum
Toyota faces a risk if the Trump administration boosts tariffs on
best sellers like its RAV4, which isn’t built in the U.S. B1
U.S. sales of RAV4 and Camry
RAV4 Camry
500 thousand
400
300
n-
200
no
100
0 0
2013 ’14
Note: Nafta countries are the U.S., Canada and Mexico
Source: the company
DIY Pothole
Rebels Tackle
Deep Problems
i i
When cities fail,
friends donate
beer, asphalt
BY VALERIE BAUERLEIN
Neighbors in New Orleans’s
historic Faubourg Marigny re-
cently threw a street party
that marked the first anniver-
sary of a pothole the length
of a small sedan.
Markets............. B11-12 They brought beer, sliders
Opinion.............. A15-17
Sports....................... A14 and 700 pounds of quick-dry
Technology............... B4 asphalt. Somebody googled,
U.S. News............. A2-6 “How to fill a pothole.”
Weather................... A14
Neighbors blocked off the
World News. A7-9,18
street with trash cans and
took turns hoisting bags and
> filling the tire-busting crater.
“People said it’s vigilan-
tism, but I think it’s hyper-
libertarianism,” said party or-
ganizer Elisa Cool, a 35-year-
old marketing specialist.
Please see HOLE page A10
THURSDAY, MAY 31, 2018 ~ VOL. CCLXXI NO. 126
STOXX 600 385.49 À 0.3% 10-YR. TREAS. g 20/32 , yield 2.842%
on
us l,
al a
e
Instead, German prices
jumped, sending yields plum-
meting, following the apparent
ci on
collapse of a prospective Ital-
ian coalition government over
the weekend.
Mr. Gross’s fund fell 3.04%
Tuesday, ranking it last in per-
er rs
formance among similar funds
this year, data tracker Morn-
ingstar said. Similar funds re-
turned, on average, a 0.22%
m e
decline in 2018 through Tues-
day, Morningstar said.
On Wednesday, Mr. Gross’s
m rp
fund rose 0.34%.
The fund’s decline on Tues-
co Fo
RAV4s sold in the U.S. that
were built in Nafta countries
80%
60
40
20
’15 ’16 ’17 2013 ’14 ’15 ’16 ’17
THE WALL STREET JOURNAL.
Fed Seeks to Loosen
Volcker Rule for Banks
i BY RYAN TRACY
AND TELIS DEMOS
WASHINGTON—The Federal
Reserve proposed on Wednes-
day easing a rule designed to
curb risky trading in the wake
of the financial crisis, one of the
most significant deregulatory
measures for banks since Presi-
dent Donald Trump took office.
The proposal, unanimously
advanced by the Federal Re-
serve and known as Volcker 2.0,
means JPMorgan Chase & Co.,
Goldman Sachs Group Inc. and
other banking behemoths would
face fewer audits of individual
securities and derivatives trans-
actions. The banks wouldn’t
have to spend as much time
proving compliance, and traders
would generally have more free-
dom to buy and sell securities.
While financial firms have
been seeking the changes for
years, regulators said the pro-
posal wouldn’t bring back the
highflying days before the finan-
cial crisis when Morgan Stanley
WSJ.com HHHH $4.00
OIL $68.21 À $1.48 GOLD $1,301.50 À $2.50 EURO $1.1666 YEN 108.91
Trump
To Impose
EU Steel
Tariffs
Move prompted by
U.S.’s failure to win
concessions; Europe
likely to retaliate
WASHINGTON—The Trump
administration, unable to win
concessions from European
Union counterparts ahead of a
Friday deadline, is planning to
make good on its threat to im-
pose tariffs on European steel
and aluminum, people familiar
with the matter said.
By William Mauldin,
Bojan Pancevski
and Vivian Salama
The administration is ex-
pected to make an announce-
ment as early as Thursday.
The move, which has been
threatened for months, is al-
most certain to draw a re-
sponse from the EU, which has
.
threatened to retaliate with its
ly
own tariffs on such American
products as motorcycles, jeans
and bourbon.
President Donald Trump an-
nounced in March global tar-
iffs of 25% on imported steel,
and 10% on aluminum, based
on national security concerns.
The White House delayed im-
plementation for some coun-
day was the latest setback for Unconstrained bond funds tries, giving those trading
Mr. Gross, the onetime “bond like Mr. Gross’s are free to in- partners a chance to offer con-
king” who built Pacific Invest- vest in a wider array of securi- cessions to avoid the tariffs.
ment Management Co. into a ties than those with more tra- The U.S. now plans to let
dominant force in the debt ditional fixed-income the EU’s exemption lapse.
markets, with more than $200 investments, like U.S. govern- One person familiar with
billion at one point under ment and corporate bonds. the matter said the adminis-
management in his Total Re- The declines in Mr. Gross’s tration’s plans could still
turn Bond Fund. fund are an example of how change, particularly if the two
Mr. Gross appeared to sig- vulnerable investors can be to sides are able to cobble to-
nal a call for selling German sudden reversals in market gether a last-minute deal,
bonds in his first-quarter let- sentiment at a time of low, if Please see METAL page A2
ter to investors, noting that a Please see BONDS page A9
March statement by the Euro-  Greg Ip: Lessons in how to do
pean Central Bank had paved  James Mackintosh: Assessing protectionism well.................. A2
the way for higher interest Italy’s panic, rescue................. B1  Renewed offensive against
rates across the continent.  The crisis, in seven charts... B12 China puts talks at risk....... A2
Trump-Style Disrupter Leads
In Mexican Presidential Race
López Obrador rattles business with talk of ‘mafia of the powerful’
BY JUAN MONTES AND JOSÉ DE CÓRDOBA make him the front-runner, and hint at a pos-
sible landslide. The prospect has split the
MEXICO CITY—In 2006, Andrés Manuel country, terrifying many of Mexico’s top busi-
López Obrador lost his first presidential race nessmen and electrifying many average Mexi-
by a hair. He refused to concede, and in a sur- cans who are fed up with the country’s poli-
real ceremony donned a presidential sash and tics-as-usual of unbridled corruption, sluggish
declared himself Mexico’s legitimate presi- growth and skyrocketing violence.
dent. Earlier, in a fiery speech in the capital’s If Mr. López Obrador is sworn in as presi-
historic square, he cursed Mexico’s governing dent—this time for real—it isn’t entirely clear
institutions. which man will turn up. Many fear it will be
“Although my opponents may not like it, to the fervent social activist with an authoritar-
hell with their institutions,” shouted the sil- ian streak who sees the country divided in
ver-haired politician. two camps, what he calls a “mafia of the
Now the 64-year-old leftist nationalist is powerful” against Mexico’s “good and honest
weeks away from an election in which he is people.” Others hope it will be the López Ob-
making his third run for the presidency. Polls Please see MEXICO page A10
World’s First
“Self-Driving”
and other powerhouses booked
Database
billion-dollar losses. Still, critics
said the proposal gives banks
too much leeway and could cre-
ate loopholes that allow banks
to engage in risky trading.
The proposal is part of a
broader regulatory rollback
that includes a recently en-
acted law easing rules on small
banks and less aggressive lead- Oracle
ership at the Consumer Finan-
cial Protection Bureau. Autonomous
Congress told regulators to
draft the rule in 2010, named
for former Federal Reserve
Database
Chairman Paul Volcker, to bar
big banks from hedge-fund-like
speculative trading activities. No Human Labor – Half the Cost
That prohibition remains.
Regulators said they want to No Human Error – 100x More Reliable
enforce the rule differently be-
cause the existing practices are
costly and confusing. The Fed
and other agencies wouldn’t au-
dit individual transactions as oracle.com/selfdrivingdb
often, but they would check to
see that bank managers set lim- Human labor refers to tuning, patching, updating, and maintenance of database.
its on traders aligned with ex- Copyright © 2018, Oracle and/or its affiliates. All rights reserved.
Please see BANKS page A4
 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.
A2 | Thursday, May 31, 2018
CAPITAL ACCOUNT | By Greg Ip
Lessons in How to Do Protectionism Well
Free trade,
for all its vir-
tues, isn’t an
easy sell. Ev-
ery coun-
try applies
some level of protectionism
out of economic or political
necessity.
But protectionism can be
done well or done badly.
Done well, it minimizes costs
to taxpayers and consumers,
maximizes benefits to do-
mestic industry, and dis-
courages bad behavior by
trade partners. President
Donald Trump routinely does
protectionism badly, using
the wrong tools on the
wrong behavior and the
wrong countries.
On Tuesday, he actually
suggested hitting the right
target the right way, when
he promised to restrict Chi-
nese investment and imports
over intellectual-property vi-
olations. But his record
raises doubts about whether
he will follow through.
Here are some lessons in
how to do protectionism
well:
Lesson one: tariffs are
better than quotas. Tariffs,
which are a tax on imports,
are more predictable and
transparent than nontariff
barriers such as quotas,
MARKUS SCHREIBER/ASSOCIATED PRESS
U.S. steel industry groups, and their allies in Congress, say the industry needs to be insulated from excess production in major economies.
METAL
Continued from Page One
though both sides suggest
such a deal is unlikely.
Commerce Secretary Wilbur
no
Ross, who led the investiga-
tion into metal imports as a
possible threat to national se-
curity, hinted on Wednesday
that the EU would face tariffs.
But he emphasized the U.S.
wants to keep negotiating a
possible deal that opens mar-
kets in Europe to U.S. exports.
“It’s not that you can’t talk
just because there are tariffs,”
Mr. Ross said in Paris at the
Organization for Economic Co-
operation and Development.
“God knows there are plenty
of tariffs the EU has in place
on us.”
European officials have said
they plan to swiftly impose
levies against as much as €2.8
billion ($3.3 billion) in U.S. ex-
ports under a rule at the
World Trade Organization that
allows members to punish a
country immediately for inap-
propriately seeking a “safe-
guard” against their exports.
U.S. officials say the steel
and aluminum tariffs—as well
as possible future auto-indus-
try tariffs—are based on na-
tional security, putting them
in line with U.S. law and a
WTO exception that allows
trade measures that protect a
country’s security.
The EU says the Trump ad-
ministration is disguising a
move to protect American
steel and aluminum industries
economically.
“We have not seen any
analysis that shows these ex-
ports pose a problem to na-
tional security,” said David
O’Sullivan, the European
Union ambassador in Wash-
ington.
which are a quantitative
limit on imports.
Yet Mr. Trump is negotiat-
ing quotas on imported steel
in lieu of tariffs. Quotas, by
restricting supply, raise
prices, just as tariffs would.
But whereas tariff revenue
goes to taxpayers, the higher
prices on imports caused by
quotas benefit foreign com-
panies.
Allocating the quota also
invites lobbying, favor trad-
ing and opaque gamesman-
ship, yielding odd results.
Argentina’s steel quota is
35% larger than recent ex-
ports, enabling it to take
market share from competi-
tors such as South Korea
whose quota is 30% smaller.
Lesson two: threatening
tariffs is worse than actual
tariffs. For months Mr.
Trump threatened to impose
tariffs without actually en-
acting them. That prompted
steel buyers in the U.S. to
stock up, an important rea-
son the volume of imports is
up 2% year to date. The Alli-
ance for American Manufac-
turing, which backs the tar-
iffs, complains the influx of
imports during the adminis-
tration’s drawn-out investi-
gation into whether steel
and aluminum imports
threaten national security
on
us l,
al a
e
ci on
er rs
m e
m rp
co Fo
“If the United States wants
to open discussions on a pos-
sible sort of trade deal, we
don’t think slapping tariffs on
n-
our aluminum and steel ex-
ports is a way to start off,”
Mr. O’Sullivan added.
Most EU member states,
along with the U.S., are mem-
bers of the North Atlantic
Treaty Organization, and
many European officials bridle
at the suggestion the steel
they send to the U.S. repre-
sents a national security risk.
China’s extensive steel and
Commerce Secretary
Ross said the U.S.
wants to keep up talks
on a possible deal.
aluminum production, which
is blamed for a global glut in
those metals, is the ultimate
target of global U.S. tariffs on
steel and aluminum imports.
And yet, U.S. steel industry
groups, and their allies in
Congress, say the industry
needs to be insulated from ex-
cess production in all major
economies, calling it a spill-
over from China’s overcapac-
ity.
Besides the EU, the U.S.
granted temporary exemp-
tions to Canada and Mexico
while the countries strove to
strike a deal on an overhaul of
the North American Free
Trade Agreement, or Nafta.
The U.S. steel industry and
steelworkers are reluctant to
punish Canadian steel, which
is heavily integrated with the
U.S. industry, so many observ-
ers expect Canada and Mexico
to get a continued exemption
as Nafta talks continue.
EU officials in Brussels
U.S. NEWS
In Decline
U.S. steel has enjoyed varying levels of import protection since the
1990s, but total employment has still shrunk.
Percentage of steel imports
covered by special tariffs
100%
China
75
World
50
25
Non-China
0 0
1995 2000 ’05 ’10 ’15
*Iron and steel mills and ferroalloy production.
Note: 2018 is year to date, not seasonally adjusted
Sources: Chad Bown, Peterson Institute for International Economics (tariffs);
U.S. Labor Department (steel and iron employment)
cost 13,500 jobs last year.
Yet because demand for steel
is strong thanks to a healthy
U.S. economy, prices are up
nearly 40% this year—as if a
tariff were already in place.
That means the foreign sup-
pliers of those imports are
enjoying a windfall.
Mr. Trump thinks threats
are a useful lever in broader
negotiations. But domestic
manufacturers can’t be sure
didn’t respond late Wednes-
day to requests to comment
about Mr. Trump’s anticipated
tariffs decision.
While the EU has repeat-
edly issued threats of retalia-
tion, it isn’t clear whether the
two giant economies will es-
calate tensions or seek to
limit the damage.
Mr. Trump has threatened
to punish EU car exports if the
bloc retaliates, and Mr. Ross is
pursuing a study of car and
auto-part imports similar to
the one he completed on steel
and aluminum.
Officials in some EU mem-
ber states are already angry at
Washington over Mr. Trump’s
decision to pull out of the Iran
nuclear deal. Still, others, in-
cluding some German offi-
cials, want to seek a solution
that prevents economic dam-
age.
French President Emman-
uel Macron said Wednesday
the EU shouldn’t respond to
pressure with weakness.
“The day before an impor-
tant decision I want to repeat
this: Unilateral responses and
threats of trade war resolve
none of the serious imbal-
ances in global trade,” Mr.
Macron said at a gathering
with Mr. Ross. “A trade war is
CORRECTIONS  AMPLIFICATIONS
Nathan’s Famous hot dogs
are made of beef. A U.S. News
article Wednesday about
Smithfield Foods Inc. incor-
rectly said Nathan’s Famous
hot dogs contain pork.
The International Energy
Agency lowered its global oil-
demand growth forecast for
Readers can alert The Wall Street Journal to any errors in news articles by
emailing wsjcontact@wsj.com or by calling 888-410-2667.
Steel & related employment*
200 thousand
150
100
50
1995 2000 ’05 ’10 ’15
THE WALL STREET JOURNAL.
if the tariff will ever take ef-
fect or if it does, will
stay. The gamesmanship thus
reduces their incentive to in-
vest in new capacity or jobs.
Lesson three: punish bad
actors, not good. Presidents
typically save their harshest
treatment for the most egre-
gious rule breakers in hopes
of changing their ways.
Mr. Trump has done the
opposite: he has picked
always a war lost by every-
one.”
Peter Altmaier, Germany’s
minister of economic affairs,
said after the meeting with
Mr. Ross: “Independently of
this decision we must do ev-
erything to protect our inter-
ests and act with self-confi-
dence and yet preserve free
trade as much as possible.”
Mr. Ross said in Paris that
“every country’s primary ob-
ligation is to protect its own
citizens and their liveli-
hoods.”
In the U.S., users of im-
ported steel and aluminum
have criticized the Trump ad-
ministration’s tariffs for
boosting prices, and many
lawmakers have advised
against targeting allies. Still,
the American industry and la-
bor groups have voiced
strong support.
Shares of U.S. Steel Corp.
rose in after-hours trading
Wednesday after the news,
climbing 4.6% to $37.93 com-
pared with a close of $36.25.
AK Steel Holding Corp.
shares advanced 5.2% after
hours, to $4.82. Century Alu-
minum Co. stock edged up
3.3% to $17.72 after hours.
—William Horobin in Paris
contributed to this article.
this year to 1.4 million barrels
a day, meaning world oil de-
mand should average 99.2 mil-
lion barrels a day in 2018. A
Markets article on May 17
about the oil market incor-
rectly said that the IEA had
lowered its global oil-demand
forecast for this year to 1.4
million barrels a day.
* *
fights with Western Europe,
Japan, South Korea, Canada
and Mexico, all U.S. allies or
neighbors that more or less
play by the rules. He has
thus far been relatively easy
on China, which even free
traders agree is a serial vio-
lator of the rules of free
trade and the ultimate cause
of global overcapacity in
steel and aluminum. He
promised tariffs on $150 bil-
lion worth of imports then
suspended them, announced
devastating penalties against
telecommunications com-
pany ZTE Corp. for violating
sanctions on Iran and North
Korea then softened them.
On Tuesday, he reiterated
a threat to hit $50 billion of
imports containing “industri-
ally significant technology”
with a 25% tariff, but it
might be another negotiating
tactic that China doesn’t
take seriously.
Mr. Trump sees trade as
governed by power and le-
verage, not rules. Because
Japan, South Korea, Canada,
Mexico and most of Western
Europe depend on the U.S.
military, market or both,
he counts on them roll-
ing over without retaliating.
.
China, which is a strategic
ly
and economic rival, hasn’t
hesitated to exercise all the
U.S. Moves Cloud
China Trade Talks
BY LINGLING WEI
AND YOKO KUBOTA
BEIJING—The White
House’s renewed trade offen-
sive against China is putting
this weekend’s planned settle-
ment talks at risk, as well as
fueling nationalistic calls for
China to take a tougher stance
against U.S. demands.
A U.S. advance team landed
in Beijing Wednesday to pre-
pare for Commerce Secretary
Wilbur Ross’s arrival Saturday,
according to people with
knowledge of the matter from
both governments.
But the surprise U.S. deci-
sion a day earlier to move for-
ward with tariffs against
China—less than two weeks
after both sides declared a
truce—is casting doubt over
whether those talks can ad-
vance to the next level, these
people said.
“This risks disrupting the
negotiations,” one of the peo-
ple said.
If the two sides’ teams fail
to agree on the issues to be
discussed, Mr. Ross’s trip
could be canceled, according
to the people. If they succeed,
however, the high-level talks
would proceed as planned,
they said.
Mr. Ross suggested on
Wednesday he was still plan-
ning to attend the weekend
meetings. “We’ve had several
sessions” with the Chinese,
Mr. Ross said at a forum in
Paris, “and I’m currently
scheduled to go over again on
Friday.”
For its part, China is look-
ing to line up other countries,
especially in Europe and Asia,
against the U.S., Chinese offi-
cials said. Their companies
could benefit from China’s
plans to allow foreign compa-
nies better access to its mar-
kets.
The State Council, China’s
cabinet, said late Wednesday it
had decided to lower tariffs on
imported washing machines,
cosmetics and other consumer
goods, starting July 1.
The council also said that
by the same date it would
complete a “negative list”
specifying areas closed to for-
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leverage at its disposal, from
its sway over North Korea to
its agricultural imports from
key Republican states.
This calculus may yield
short-run wins but at the ex-
pense of long-term coopera-
tion.
Lesson four: have a post-
protection plan. China’s pro-
tectionism is future-focused,
seeking to become globally
competitive in industries
such as aerospace, renewable
energy and robotics. Mr.
Trump, by contrast, seems
obsessed with the past,
when American coal, cars
and steel ruled the world.
But protection cannot
make an industry grow that
is fundamentally in decline.
Chad Bown of the Peter-
son Institute for Interna-
tional Economics notes steel
has been protected to vary-
ing degrees from imports
since the 1990s. Yet U.S.
steel employment has since
fallen by half.
Even if several thousand
manufacturing workers see
their jobs brought back by
protection, many thousands
who aren’t so fortunate will
need skills in growing indus-
tries where the U.S. has an
advantage. On this, Mr.
Trump hasn’t had much to
offer.
eign investors. The U.S. and
other countries have asked
China to change fundamentally
how it approves foreign in-
vestment. Currently, it re-
sponds to specific applica-
tions, but Western nations
have urged a negative-list ap-
proach that opens the econ-
omy to investment apart from
certain restricted sectors such
as defense.
Beijing has been bracing for
lengthy sparring with Wash-
ington over trade and other
economic issues, but the truce
called by both sides had raised
hopes for a near-term settle-
ment that would give the
world’s two biggest economies
a way forward.
Then, on Tuesday, President
Donald Trump’s administra-
tion said that by June 15 it
would release a final list of
$50 billion in imports from
China that would be subject to
tariffs of 25%, which would be
applied soon after. It also said
it planned by June 30 to an-
nounce investment restric-
tions meant to prevent Chi-
nese acquisition of U.S.
technology.
The move emboldened
hard-liners within China who
advocate fighting fire with
fire.
Mei Xinyu, an analyst at a
think tank affiliated with
China’s Commerce Ministry,
called for hitting back with
tariffs on soybeans, sorghum
and other products from the
Farm Belt states, a stronghold
of support for Mr. Trump.
“Since the U.S. side can talk
about imposing tariffs again,
we can also put forward our
previously published retalia-
tion lists,” Mr. Mei wrote in an
article posted on a popular so-
cial-media account run by the
official People’s Daily.
In response to questions
from The Wall Street Journal,
Mr. Mei said he believes Mr.
Trump announced the tariffs
as a negotiating tactic but that
the China side can see through
the ploy. “Trump overplayed
this ‘unpredictability’ strat-
egy,” Mr. Mei said.
—Liyan Qi
and William Horobin
contributed to this article.
 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.

THE WALL STREET JOURNAL. * * Thursday, May 31, 2018 | A3

U.S. NEWS

Housing Shortage Shadows Rural Areas

Lack of homes crimps
In a Bind
towns’ ability to lure Rural workers in Nebraska see higher housing prices than their urban
workers, forces firms counterparts. Home values are growing faster than wages in
Nebraska.
to delay expansions
Home values in Nebraska Change from a year earlier
BY SHAYNDI RAICE $150,000 10%

Rural Home values

COLUMBUS, Neb.—Austin
Steinbach said he was “dead
set” on moving to this rural 100,000 5
farming town for a job that of-
SHAYNDI RAICE/THE WALL STREET JOURNAL

fered benefits, a $500 signing

bonus and a higher wage. Urban
But the 25-year-old father of 50,000 0 Average
two had to turn it down after a weekly
week-long search with his wife wages*
for a home failed to turn up
anything livable or in their 0 –5
price range.
2000 ’05 ’10 ’15 2002 ’05 ’10 ’15
“What they offered out there
was great, but I can’t afford to *Four-quarter average
move because I can’t afford to Sources: Zillow (home values);
Labor Department (wages) THE WALL STREET JOURNAL.
rent a house there,” he said. In- Many workers can’t find homes in rural towns like Columbus, Neb., where this house is being built.
stead, Mr. Steinbach will stay in
Creston, Iowa, where he sup- eas in 2016, representing about tor of research for the Housing The labor shortage is so bad for developers to build hun- first market-rate rental units
ports his family earning $2 less 10% of all new single-family Assistance Council, a group that the chamber of commerce dreds of rental units and sin- built since 1985.
an hour power-washing farm homes, according to the Na- based in Washington, D.C., that goes town to town to recruit gle-family homes in varying Next door in Iowa, some
equipment and has no benefits. tional Association of Home works on affordable housing in workers like Mr. Steinbach. price points through low-inter- small towns have been trying
Fewer homes are being built Builders. The rural market rural communities. “The in- “The fear is that if we don’t est loans. A local housing non- to get creative. The city of
per household than at almost share of single-family homes comes in this country have not solve this in some way, we’re profit applied for the grants Newton, about 35 miles east of
any time in U.S. history, and it has been falling. It was 14% in really matched housing prices gonna lose a big employer,” and has letters of intent from Des Moines, took out $3.7 mil-
is even worse in rural commu- 2010, the association of home so you continue to have this said Kimberly Hoefer, a real-es- developers willing to build the lion in bonds to fix dilapidated
nities. Developers there can’t builders found. disconnect.” tate broker in Columbus. proposed projects. homes and spur local develop-
tap into the economies of scale The housing shortage in ru- Columbus, which has a pop- Last year, car-seat maker Nearby Schuyler, Neb., about ment. Since the initiative in
available in urban centers, ral communities has become ulation of around 23,000 and is Camaco Amvian LLC nixed 30 miles east, received grants 2014, it has issued 50 new
making materials and labor especially acute as unemploy- about 90 miles west of Omaha, plans to expand in Columbus, to build as many as 32 new housing permits, up from eight
more expensive. Rural areas are ment hits record lows. The na- still has a few retail shops. A citing the lack of available rental units. It would be the between 2011 to 2013.
also seeing their populations tional unemployment rate in Walmart, fast-food chains and workers. Mike Niemann, the
stagnate or decline as younger April was at 3.9%, while in restaurants line the two main general manager of the plant,
people opt for urban living, Platte County, which includes highways through town. said the expansion would have

.
adding to the gamble involved Columbus, unemployment fell Platte County’s population required an additional 300

ly
in speculative building. to 2.7% in March. growth has been sluggish in re- workers. “There was no way we
“As a developer or builder, There are around 990 job cent years. Its labor force grew were going to be able to do
you have to think hard about openings in Platte County, ac- 1.3% in 2017, after seeing its that [in Columbus],” he said.
whether the risk is worth the cording to the state. A total of on working-age population con- Nebraska recently granted
reward,” said K.C. Belitz, presi- 65 homes are now available tract annually since 2012. Me- $7 million to rural communi-
dent of the Columbus Area for sale with a median listing dian household income in Co- ties, including Columbus, to
Chamber of Commerce. “For a price of $209,550, according to lumbus was about $53,857 in build market-rate homes to
lot, it isn’t.” realtor.com. 2016, according to Census bu- help attract more workers. In
us l,

There were 71,000 single- “It’s a pretty simple equa- reau data, compared with Columbus, $850,000 is pro-
family homes built in rural ar- tion,” said Lance George, direc- $54,384 for the state. posed to go toward incentives
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DOMINICK REUTER FOR THE WALL STREET JOURNAL

HANDCRAF TED MODERN CHAIN

n-

Philadelphia officers told a man he had to vacate Wednesday as the city cleared two bridge encampments in the Kensington neighborhood.

Philadelphia Clears Out Drug Camps

no

BY JON KAMP forts work. Authorities said other two encampments. The helped more than two dozen
more than 120 people ac- city will need more funding to people get identification cards.
Philadelphia authorities cepted some kind of services, clear those tunnels, a spokes- Kate Perch, housing coordi-
cleared two tent camps where including nearly four dozen woman said. nator with Prevention Point
opioid users congregated, cap- who entered treatment. Police enforced the closures Philadelphia, a harm-reduction
ping a monthlong effort to “We are happy with the pre- by issuing citations to anyone nonprofit that contracts with
move people into treatment liminary results,” Michael DiBe- who refused to remove their the city, helped with the out-
and shelters. rardinis, the city’s managing di- belongings, the city said. Any reach effort. She said they got
Four tunnels filled with rector, said in a release. “We personal property left behind five more people to accept
tents and mattresses beneath provided respite housing for will be stored for six weeks. emergency shelter on Wednes-
a freight railway have become over 100 people and saw more Signs were posted April 30 day. She believes most people
symbols of the city’s drug people enter treatment in the telling people they had a left the Tulip Street and Kens-
problem, spilling out into the first two weeks of the pilot than month to leave. Over that ington Avenue tunnels before
Kensington neighborhood. in the prior six months; how- span, workers made lists of authorities arrived.
Deeming the tunnels health ever, we have more work to do.” the people to assess their “Where they went, only time
and safety hazards, the city The program will be re- needs and connect them to will tell,” she said. “When peo-
cleared two of them Wednes- viewed by an outside evalua- services, the city said. A van ple know they’re going to be
day as part of a pilot project. tor and neighborhood associa- was on site to provide medical forced to leave at some point, a
It will take time to deter- tions, and may help inform care and transport people to lot of people are going to make
mine whether the outreach ef- how the city manages the services, and workers also the choice not to wait.”

Weinstein Indicted on Sex-Crime Charges

BY ZOLAN KANNO-YOUNGS Vance Jr. said in a statement.
Mr. Weinstein’s lawyer,
A grand jury in Manhattan Benjamin Brafman, said in a
indicted former Hollywood statement Wednesday prior to
producer Harvey Weinstein the indictment that it was in-
Wednesday on charges of rape evitable because of political
and perpetrating a criminal pressure on Mr. Vance. Mr.
sex act. Brafman said Mr. Weinstein
The indictment comes after wouldn’t testify before the
Mr. Weinstein’s arrest last Fri- grand jury because a request
day for alleged sex crimes in to postpone his testimony was
2004 and 2013 against two denied.
women. After the announcement of
“This indictment brings the the indictment, Mr. Brafman
defendant another step closer reiterated that Mr. Weinstein
to accountability for the intends to plead not guilty
crimes of violence with which “and vigorously defend against
he is now charged,” Manhat- the unsupported allegations
tan District Attorney Cyrus that he strongly denies.”
The charges of rape in the
first and third degree involve
a woman, whose name re-
mains under seal, who alleged
Mr. Weinstein forced her to
have sexual intercourse in a
hotel. Another allegation from
2004 was made by then-aspir-
ing actress Lucia Evans, who
has accused Mr. Weinstein of
forcing her to perform oral
sex, according to a law en-
forcement official.
In a tweet, Ms. Evans’s at-
torney, Carrie Goldberg, said
“what Mr. Weinstein’s attor-
neys call casting couch behav-
ior we know is actually a sex
crime.”
Mr. Brafman criticized the
allegations against Mr. Wein-
stein in his statement Wednes-
day. He said Mr. Weinstein
was in a decades-long rela-
tionship with the woman who
made the 2013 rape allegation,
and the relationship continued
for years after the alleged sex
crime. He called the 2004 alle-
gation “unsupported.”
“The defendant’s recent as-
sault on the integrity of the
survivors and the legal pro-
cess is predictable,” Mr. Vance
said. “We are confident that
when the jury hears the evi-
dence, it will reject these at-
tacks out of hand.”
 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.
A4 | Thursday, May 31, 2018
Republican Disputes Trump on ‘Spies’
Gowdy says FBI probe
of Russian meddling
was legitimate, also
faults Sessions move
BY PETER NICHOLAS
AND SADIE GURMAN
WASHINGTON—A senior Re-
publican congressman disputed
President Donald Trump’s claim
that “spies” infiltrated his 2016
campaign, saying that the Fed-
eral Bureau of Investigation was
conducting a legitimate probe
of Russian election meddling.
Rep. Trey Gowdy (R., S.C.),
who heads the House over-
sight committee, also said he
understood Mr. Trump’s frus-
tration with Attorney General
Jeff Sessions, who recused
himself from the Russia inves-
tigation based on his involve-
ment in the Trump campaign.
Had Mr. Trump known earlier
that Mr. Sessions planned to
recuse himself, the president
could have chosen a different
attorney general, Mr. Gowdy
said in an interview on CBS.
The president has long com-
plained about Mr. Sessions’ re-
cusal and has said Mr. Sessions
should have told the White
House he would take that
stance before he was nomi-
nated. Mr. Sessions announced
his recusal in March 2017 with-
out first informing the presi-
dent, after new details emerged
about contacts between Mr.
Sessions and Russian officials.
Mr. Trump took a fresh
swipe at Mr. Sessions on
Lawyer Withdraws From Cohen Case More States Consider
BY REBECCA DAVIS O’BRIEN
AND NICOLE HONG
Michael Avenatti, the law-
yer for former adult-film ac-
tress Stephanie Clifford, with-
drew a bid to participate in
proceedings related to the
criminal investigation into
President Donald Trump’s per-
sonal lawyer, shortly after
other lawyers and a judge
raised concerns in court about
his behavior in the matter.
Mr Avenatti withdrew his
motion after U.S. Judge Kimba
M. Wood issued a stern warn-
ing, saying if she allowed him
to participate in the case in-
volving Michael Cohen, Mr.
Avenatti would have to change
his conduct and stop what she
called his “publicity tour.”
“You will not be permitted
to use this court as a platform
for anything,” Judge Wood
said, adding that he wouldn’t
be allowed to publicize private
documents or to share his
views of Mr. Cohen’s guilt—
“which you do,” she said.
The hearing in Manhattan
on Wednesday was partly fo-
cused on whether Mr. Avenatti
could be admitted to practice
in New York on behalf of Ms.
Clifford, known as Stormy
Daniels. Mr. Avenatti had
no
sought to be heard in the case
BANKS
Continued from Page One
pected customer demand. The
law allows hedging and market-
making on customers’ behalf.
The proposal “will allow
firms to conduct appropriate
activities without undue burden
and without sacrificing safety
and soundness,” Fed Chairman
Jerome Powell said.
Citigroup Inc. Chief Execu-
tive Michael Corbat told inves-
tors on Wednesday that the
bank advocates the “spirit of
Volcker.”
But “we’re all somewhat per-
plexed and challenged by the
implementation,” Mr. Corbat
said, citing the “presumption of
guilt,” the lack of a single regu-
lator and the collection of trad-
ing data that the government
doesn’t appear to use.
Four other U.S. agencies are
expected to follow the Fed in
proposing the changes over the
next week. They will take public
comments before completing
the proposal.
The proposal is drawing
strong support, including the
backing of banking regulators
who were tapped by former
President Barack Obama, a
Democrat. A separate proposal
on bank capital rules has
sparked opposition from
Obama-nominated regulators.
Fed Vice Chairman for Su-
pervision Randal Quarles, who
was nominated by Mr. Trump,
Jeff Sessions, left, recused himself from the Russia probe last year. President Donald Trump criticized that move again Wednesday.
Wednesday in responding to
Mr. Gowdy’s comments about
picking a different attorney
general. “I wish I did!” the
president tweeted.
John Dowd, the president’s
former top outside lawyer in
the Russia probe, said Mr. Ses-
sions “blindsided the presi-
dent with his baseless recusal
because he worked on the
campaign.” on paign, he had no choice but to
us l,
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Stormy Daniels’ lawyer Michael Avenatti was criticized by a judge.
because he believes materials
related to his client may have
been swept up in a raid by fed-
eral agents last month on Mr.
Cohen’s premises.
About an hour after the
hearing, Mr. Avenatti withdrew
his motion in a filing, without
n-
explanation. The filing said the
motion would be “refiled, if
necessary, at a later time.”
Ms. Clifford received a
$130,000 payment from Mr.
said the changes were a “first
effort,” suggesting more could
be proposed later.
“This isn’t about allowing
formerly banned types of pro-
prietary trading,” said Gabriel
Rosenberg, a lawyer who works
with banks, referring to a bank
trading for its own benefit.
“This is really a rationalization
of the program.”
Some critics said the propos-
als could create loopholes.
“Sadly, this Volcker 2.0 pro-
posed rule appears to weaken
rather than advance the imple-
mentation” of the rule, said
Andy Green, a former aide to
Sen. Jeff Merkley (D., Ore.), an
author of the Volcker rule. “The
result will be more banks bet-
ting against, rather than serv-
ing, their customers.”
Mr. Volcker said in a written
statement that the proposal
must “not undermine the core
principle at stake—that tax-
payer-supported banking
groups, of any size, not partici-
pate in proprietary trading at
odds with the basic public and
customers’ interests.”
The proposal would broadly
loosen compliance requirements
for all banks, though it would
grant the most relief to firms
with small trading desks.
In practice, judging whether
a given trade complies with the
Volcker rule has been difficult
for regulators and for bankers.
Banks have spent millions of
dollars developing systems to
measure trading activity and
model future customers’ de-
P W L C 10 11 12
The Justice Department de-
clined to comment on Mr.
Trump’s tweet.
People close to Mr. Sessions
have said he doesn’t regret his
decision to step aside from the
Russia probe, and still believes
it was the only ethical choice.
Many legal experts have said
that, given Mr. Sessions’ promi-
nent role in the Trump cam-
Cohen just before the 2016
election to keep her from dis-
cussing what she alleged was a
past sexual encounter with Mr.
Trump. Mr. Cohen and White
House representatives have
denied any sexual encounter
took place between Mr. Trump
and Ms. Clifford.
Motions such as Mr. Ave-
natti’s are routinely granted in
federal court and rarely op-
posed. But in Wednesday’s
The rule, named for
former Fed chief Paul
Volcker, is designed
to curb risky trading.
mand. Wednesday’s proposal
wouldn’t do away with those
systems, but it could allow
banks to simplify them.
Observers have said financial
markets aren’t functioning as
well as they could because big
banks are nervous that certain
positions may violate the Vol-
cker rule, though there is an
open debate on the rule’s pre-
cise effect. Mr. Quarles has said
the impact on liquidity is unar-
guable, though hard to measure.
Another Fed official said many
factors are affecting financial
markets, including new trading
technologies.
Big banks have already cut
back on trading businesses in
H T G K B F A M 1 2 3 4 5 6
U.S. NEWS
step away from a campaign-re-
lated investigation.
One person close to the
White House said Wednesday
that Mr. Trump, despite his un-
happiness, would be hard-
pressed to fire Mr. Sessions.
Such a move might trigger a
wave of resignations at the Jus-
tice Department and possibly
the White House, creating an
unneeded crisis in advance of
hearing, Stephen Ryan, a law-
yer for Mr. Cohen, said he had
“never seen an attorney con-
duct himself in the manner Mr.
Avenatti has,” citing Mr. Ave-
natti’s “intentional, malicious
and prejudicial” release earlier
this month of a document de-
tailing bank transactions by
Mr. Cohen.
Mr. Avenatti denied any im-
proper behavior, saying Mr.
Ryan’s accusations were “with-
out any evidentiary basis.”
In court, Mr. Avenatti said a
RICHARD DREW/ASSOCIATED PRESS
media outlet had contacted
him about an audio recording
between Mr. Cohen and Ms.
Clifford’s former lawyer, Keith
Davidson, that contained “at-
torney-client information”
about Ms. Clifford, suggesting
that somebody associated with
Mr. Cohen had leaked it.
Mr. Ryan said if any such
recording existed, it would be
kept “under lock and key.”
Throughout the hearing, Mr.
Cohen sat flanked by lawyers,
occasionally shaking his head
when Mr. Avenatti spoke. The
Manhattan U.S. attorney’s of-
fice has said it is investigating
Mr. Cohen for his personal
business dealings.
Lawyers for Mr. Cohen have
until June 15 to complete their
review of the materials seized
in the April raid.
search of more stable revenue
sources. It isn’t clear those jobs
will return, even with Wednes-
day’s proposed changes.
The current generation of
top bankers, many of whom cut
their teeth in businesses outside
of trading, have said that what-
ever happened to Volcker they
aren’t planning for a return of
proprietary trading desks.
“I’m not sure banks should
put large parts of their capital
at risk in proprietary trading or
proprietary investing posi-
tions,” James Gorman, Morgan
Stanley chief executive, told an-
alysts in April.
Wednesday’s proposal would
eliminate a presumption that
positions held for fewer than 60
days violate the rule unless
bankers prove otherwise, di-
rectly addressing Mr. Corbat’s
criticism. Instead, regulators
would look to how positions are
defined under accounting rules
to determine whether they con-
stitute short-term trading.
Regulators also would pre-
sume traders were complying
with the rule if they stayed
within limits set by their trad-
ing desks, but the government
would regularly review those
limits to make sure they were
set appropriately.
If a trading desk booked
gains and losses that exceed $25
million over a 90-day period,
that desk would have to prove it
wasn’t violating the Volcker
rule. But if the desk stayed un-
der that level, regulators would
presume it was in compliance.
7 8 9 O I X X **** THE WALL STREET JOURNAL.
Democratic lawmakers over the
FBI’s use of a confidential infor-
mant in the early stages of the
Russia investigation.
The first briefing at the
Justice Department included
House Speaker Paul Ryan,
House Intelligence Committee
Chairman Devin Nunes, Mr.
Gowdy and the intelligence
panel’s ranking Democrat, Rep.
Adam Schiff of California, who
was invited at the last minute.
In the Wednesday interview,
Mr. Gowdy, who isn’t seeking
re-election this fall, said the
FBI’s mission was to run to
ground suspicions of Russian
interference in the election.
Had Mr. Trump seen the
same classified material
shared with lawmakers last
week, he would likely back off
his accusations about spies in-
side his campaign, Mr. Gowdy
WIN MCNAMEE/GETTY IMAGES
said. ‘I think his lawyers have
an obligation to share with
him what Devin [Nunes] and
Paul [Ryan] and I saw last
week. I’m convinced when he
sees it, he’s going to say, ‘You
know what? That’s what I told
[Former FBI Director James]
Comey I wanted the FBI to
do,’ ” Mr. Gowdy said.
the midterm elections. White House spokeswoman
Trump lawyer Rudy Giu- Sarah Sanders said Wednes-
liani, speaking to reporters day, “The president still has
Wednesday, said he didn’t be- concerns about whether or not
lieve Mr. Trump was planning the FBI acted inappropriately
to fire Mr. Sessions. having people in his campaign,
“I think in the long run, it and certainly the president
.
will be worked out,” he said. has concerns about the overall
ly
Last week, Deputy Attorney conduct of the FBI when it
General Rod Rosenstein held a comes to this process.”
pair of unusual classified brief- —Michael C. Bender
ings with both Republican and contributed to this article.
Expanding Medicaid
BY STEPHANIE ARMOUR sion was approved by voters
in November 2017. But the
Virginia is poised to expand program hasn’t been imple-
Medicaid after a hard-fought mented by Republican Gov.
legislative battle, making it Paul LePage, who has said he
one of a growing number of has funding concerns, prompt-
states where there is interest ing a lawsuit from health-care
in expanding the program af- activists.
ter Republicans failed to re- Still, the growing interest in
peal the Affordable Care Act Medicaid expansion, even in
last year. some conservative states, sug-
The Virginia General As- gests the program is becoming
sembly on Wednesday ap- more accepted as it appears
proved expansion of Medicaid, less likely congressional Re-
the state-federal program for publicans will successfully re-
the low income. Democratic vive efforts to repeal the ACA.
Gov. Ralph Northam has sig- In a twist, part of the re-
naled he will sign the bill, newed interest in red states
making the state the 33rd to comes from the Trump admin-
expand Medicaid under the istration’s willingness to let
ACA. states impose work require-
Efforts are under way in ments on Medicaid beneficia-
other states, but the outlook is ries, making the idea of ex-
far from certain. panding the government
Organizers who support safety-net program more pal-
Medicaid expansion in Utah atable to some conservatives.
learned this week that they More than 12 million peo-
had obtained enough signa- ple have been covered by
tures to put the initiative on Medicaid since the ACA, en-
the ballot in November, poten- acted in 2010, made federal
tially expanding coverage to funding available for state
more than 100,000 people. Re- Medicaid expansions, accord-
publican Gov. Gary Herbert ing to Manatt Health.
supported a more-limited ex- Virginia’s action would ex-
pansion plan that would have tend Medicaid coverage to
covered fewer residents and between 300,000 and
required federal approval. 400,000 people. It will in-
A push has also begun to clude some work require-
get expansion on the ballot in ments and premium-payment
Idaho, where voters will select
a new governor this fall.
The odds look less likely in
other red states. Organizers
requirements and will be paid
for partly by a tax on hospi-
tals.
The state-by-state battles
are trying to get expansion on arise from the Supreme
the ballot in Nebraska, but Court’s landmark 2012 deci-
GOP Gov. Pete Ricketts has sion upholding the ACA,
been opposed, saying it would which included a finding that
be an expensive burden for states couldn’t be forced to
state taxpayers. expand Medicaid, leaving the
In Maine, a Medicaid expan- decision to individual states.
Prosecutor Drops Charges
Against Missouri Governor
BY SHAYNDI RAICE had broken no laws but was
resigning to spare his family.
A St. Louis prosecutor “This ordeal has been de-
dropped campaign-finance-re- signed to cause an incredible
lated charges against embat- amount of strain on my fam-
tled Missouri Gov. Eric Greit- ily,” he said. “It’s clear that for
ens, a day after he announced the forces that oppose us,
his resignation amid a series there’s no end in sight. I can-
of scandals. not allow those forces to con-
St. Louis Circuit Attorney tinue to cause pain and diffi-
Kimberly Gardner had charged culty to the people that I
Mr. Greitens, a Republican, in love.”
April with felony computer Mr. Greitens, a former Navy
tampering involving allegedly SEAL and best-selling author,
misusing a charity donor list said he would step down at 5
during his gubernatorial run. p.m. on Friday. He also had
The 44-year-old governor been under investigation by
agreed to resign if the charges Ms. Gardner’s office after re-
were dropped, according to ports surfaced that he had
Ms. Gardner’s office. threatened to release nude
“There was no witch hunt,” photos of a former mistress if
Ms. Gardner said Wednesday at she publicly spoke about a
a press conference. “The con- 2015 extramarital affair they
sequences Mr. Greitens has suf- had before he became gover-
fered, he brought on himself.” nor in January 2017. He admit-
As he stepped down on ted to the affair but main-
Tuesday, Mr. Greitens said he tained it was a private matter.
 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.

THE WALL STREET JOURNAL. Thursday, May 31, 2018 | A5

GREAT GIFTS FOR GRADS AND DADS

“EVERYONE WITH GOALS AND DREAMS
C A N L E A R N F R O M R AY ’ S A P P R O A C H ”
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A6 | Thursday, May 31, 2018
How Trump’s Anthem Play Worked Governor
BY ANDREW BEATON
Has Plan
President Donald Trump
didn’t mince words last fall
when he explained to Dallas
Cowboys owner Jerry Jones
that he wouldn’t relent in his
criticism of NFL players who
were kneeling during the na-
tional anthem to protest social
injustice.
“This is a very winning,
strong issue for me,” Mr. Trump
said in a phone call, according
to a sworn deposition given by
Mr. Jones and reviewed by The
Wall Street Journal. “Tell every-
body, you can’t win this one.
This one lifts me.”
Mr. Jones was deposed in a
grievance filed against the Na-
tional Football League by for-
mer San Francisco 49ers quar-
terback Colin Kaepernick, who
contends that National Football
League teams have blackballed
him over his anthem protests.
A White House official said
Mr. Trump was advising Mr.
Jones on what he believed
would be good for the country
and good for the sport. “The
majority of the American peo-
ple agree with the president,
love our country, love our flag
and believe it should be re-
spected,” the official said.
Nearly two years since Mr.
Kaepernick’s initial protest, NFL
owners last week voted to
change league rules: Players on
the field for the national an-
them are required to stand, or
their teams could face repercus-
sions. The overhaul allows play-
ers to remain in the locker room
for the anthem, which was pre-
viously banned, but it also per-
mits teams to punish players
that violate the new protocol.
“I brought it out,” Mr.
Trump said of the issue in a
Fox News interview after the
rule change was announced. “I
think the people pushed it for-
ward.”
Depositions given by Mr.
Jones and other owners indi-
cate that Mr. Trump’s criticism
pushed the league to shift its
stance. League executives pub-
VETERANS AFFAIRS
Acting Secretary
Appointed at Agency
The White House on Wednes-
day announced a new acting sec-
retary at the Department of Veter-
ans Affairs, ending confusion about
who is in charge of the agency.
Peter O’Rourke, the VA’s chief
of staff, succeeds Robert Wilkie,
whom President Donald Trump
has nominated for VA secretary.
Mr. Wilkie had to vacate his
acting position because of civil-
service procedural regula-
tions. The move sets ground-
work for a confirmation hearing.
The White House didn’t respond
to a request for comment.
Mr. Wilkie initially took over
no
In October 2016,
above, then San
Francisco 49er Colin
Kaepernick and some
of his teammates
knelt during the
national anthem. Mr.
Kaepernick, who is
no longer on any
NFL team, has filed
a grievance against
the league. Right,
Dallas Cowboys
owner Jerry Jones
took a knee with his
players before the
anthem in
September 2017.
licly repeated the NFL’s aim to
stay out of politics. Privately,
they made political calculations on [the players] until Trump made
in response to Mr. Trump’s re-
peated hammering of the issue.
The controversy over an-
them protests had already
us l,
been raging for a year when
Mr. Trump—at a stump
al a
e
speech in Alabama in Septem-
ber—said that if a hypotheti-
cal player knelt during the
ci on
national anthem, his team’s
owner should “get that son of
a bitch off the field now.” On
Twitter, he later encouraged
owners to fire those players
er rs
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the helm after the ouster of Da-
vid Shulkin in March, following a
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controversy involving a taxpayer-
funded official trip to Europe.
—Ben Kesling
KENTUCKY
co Fo
Explosion Damages
UPS Freight Hub
An explosion at a Lexington,
Ky., United Parcel Service Inc.
freight facility Wednesday sent
several people to the hospital and
prompted an evacuation, accord-
ing to the local fire department.
Jason Wells, a battalion chief
at the Lexington Fire Depart-
ment, said the explosion appears
to have started with a truck and
n-
trailer that had acetylene gas.
U.S. NEWS
and suggested a boycott.
“I was totally supportive of
his statement,” Stephen Ross,
the Miami Dolphins’ owner and
creator of programs advocating
for social justice, said in his de-
position.
Mr. Trump’s stance is a key
point in Mr. Kaepernick’s griev-
ance, which was filed in Octo-
ber. It alleges that the league
and its 32 teams colluded to
keep him unsigned last season
because of his political views.
Mr. Kaepernick, who ignited
the anthem demonstrations in
U.S. WATCH
“Nothing leads us to believe
this is anything other than an
accidental explosion,” the fire de-
partment said.
Eight people were trans-
ported to the hospital, the de-
partment said. There was “sig-
nificant” structural damage to
the building.
—Jon Kamp
FDA
Device Helps Identify
Worst Stroke Cases
The Food and Drug Adminis-
tration gave marketing clearance
for a device that can potentially
revamp stroke care by allowing
paramedics in the field to diag-
nose severe strokes requiring
For-Profit Colleges Pursue a Status Change
BY MICHELLE HACKMAN
WASHINGTON—Ashford Uni-
versity is one of more than a
dozen for-profit colleges look-
ing to become nonprofit institu-
tions, a change that would re-
duce federal oversight and allow
them to shed the often-ma-
ligned “for profit” designation.
Switching “to nonprofit sta-
tus will allow Ashford Univer-
sity to…be judged and measured
as colleges and universities
should be—on their ability to
support student success,” said
Nolan Sundrud, a spokesman
for Bridgepoint Education, Ash-
ford’s corporate owner.
The plan requires Internal
Revenue Service and Educa-
tion Department approval.
Several other prominent for-
profit chains are seeking simi-
lar approvals. The Dream Cen-
ter, a nonprofit religious
institution, has purchased a
chain of art institutes it is hop-
ing to convert to nonprofits,
and Grand Canyon University, a
school with 70,000 online stu-
dents, is also looking to change.
The shift follows the Obama
administration’s crackdown on
what it viewed as predatory
practices by for-profit schools.
The schools say converting
their tax status would free up
more money to educate stu-
dents and redirect unneces-
sary government scrutiny.
“They are getting smart and
getting ahead while they have
someone friendly in office,” said
Clare McCann, a higher-educa-
2016 to draw attention to racial
inequality and other social-jus-
tice issues, has remained un-
signed despite statistics supe-
rior to other quarterbacks who
have gotten jobs. His grievance
argues that Mr. Trump was an
“organizing force in the collu-
sion” because of the president’s
relationships with various NFL
owners, many of whom have
backed him with campaign
contributions.
When the 2017 season be-
gan, only a handful of players
were still kneeling. But Mr.
Trump’s fiery comments in Ala-
specialized treatment.
The Lucid Robotic System,
manufactured by Neural Ana-
lytics Inc. of Los Angeles, is
aimed at one of the central di-
lemmas of modern neurology:
How to quickly identify patients
with the most severe strokes
who could benefit from being
taken immediately to hospitals
that can perform a complex
clot-removal procedure.
—Thomas M. Burton
STATE DEPARTMENT
Chinese Will Face
Tougher Visa Process
The Trump administration or-
dered State Department officials
in China to take a tougher ap-
Educational Shift
Annual enrollment at private
for-profit and nonprofit four-year
or above postsecondary
institutions Nonprofit
For-profit
5 million
4
3
2
1
0
2002 ’05 ’10
Note: Years are end of school year.
Source: Department of Education
THE WALL STREET JOURNAL.
tion-policy analyst at the New
America Foundation, a liberal-
leaning think tank. The Educa-
tion Department didn’t respond
to a request for comment.
Obama administration offi-
cials had sought to ensure that
any school recognized as a
nonprofit had essentially sev-
ered ties with individuals or
entities that could make money
off its operations. Education
Secretary Betsy DeVos’s de-
partment has moved to roll
back several Obama-era regula-
tions on for-profit schools and
she has said such institutions
give students valuable choices.
Nonprofit schools save mil-
lions in taxes, and they avoid
many federal regulations such
* *** THE WALL STREET JOURNAL.
bama—just before the season’s
third weekend—changed that.
The following Sunday, players
knelt en masse to directly re-
buke the president.
Many owners took a knee
alongside their players. Mr.
Jones, in a high-profile Mon-
day night game Sept. 25, knelt
with his players before the an-
them, but they stood when it
was played.
MARCIO JOSE SANCHEZ/ASSOCIATED PRESS
Publicly, the NFL fought
back and touted the moment as
a display of unity. Commis-
sioner Roger Goodell called Mr.
Trump’s comments “divisive.”
Behind the scenes, the ker-
fuffle rankled a league that was
already grappling with declin-
ing ratings. Messrs. Ross, Jones
and Bob McNair, the owner of
the Houston Texans, said in
their depositions that they be-
lieved the protests were finan-
cially hurting their teams.
This off-season brought both
new opportunity and scrutiny.
The league’s owners had two
scheduled meetings, in March
and May, to discuss an array of
topics, including the anthem.
At the same time, a former
teammate of Mr. Kaepernick’s
who also had taken a knee dur-
MATT YORK/ASSOCIATED PRESS
ing the anthem, Eric Reid, was
going unsigned.
In May, Mr. Reid filed a col-
lusion grievance against the
league, like Mr. Kaepernick.
The NFL Players Association
also filed a grievance, saying a
.
team violated league rules by
ly
asking Mr. Reid about his in-
tentions during the anthem.
When the owners met last
week in Atlanta, the host city
for next year’s Super Bowl,
they changed the rule.
Mr. Jones declined to com-
ment. In his deposition, which
was taken before the rule
change, he fought back against
the idea that Mr. Trump re-
framed the conversation. “Let’s
[not] give him that much
credit,” he said. “But I recog-
nize he’s the president of the
United States.”
—Louise Radnofsky
contributed to this article.
proach to visa applications by
Chinese citizens, according to a
person familiar with the policy,
the latest move in tensions be-
tween the two countries over
trade and other economic issues.
The fresh guidance for con-
sular officers in China could re-
sult in shorter visas for some
Chinese students and longer de-
lays for some Chinese business
visa applicants, this person said.
A State Department official de-
clined to comment on the details
but said any changes would take
effect June 11.
The new measures target
students studying robotics, avia-
tion and high-tech fields, accord-
ing to the Associated Press,
which earlier reported the move.
—Jessica Donati
’15
For-profit leaders say the collapse of ITT Technical Institute and
Corinthian Colleges tarnished the industry’s reputation.
as the so-called 90/10 rule,
which limits for-profit schools
to receiving no more than 90%
of their revenue from federal fi-
nancial aid. For-profit leaders
also say the collapse of two for-
profit chains, Corinthian and
ITT Technical institute, tar-
nished the industry’s reputation.
“The real reason that schools
move to a nonprofit status is be-
cause there has been an attack
on our sector that has clearly
created some bad public rela-
tions and images,” said Steve
Gunderson, a former Republican
congressman who now heads
Career Education Colleges and
Universities, the for-profit in-
dustry’s main trade group.
If Ashford’s conversion is ap-
To Boost
Gun Safety
BY TAWNELL D. HOBBS
DALLAS—Texas Gov. Greg
Abbott called for strengthen-
ing gun storage laws and indi-
cated he is open to making it
easier to remove firearms from
potentially dangerous people,
moves that could be a turning
point for a state that has some
of the most lenient gun laws in
the country.
Mr. Abbott, a Republi-
can, provided 40 recommenda-
tions Wednesday to improve
school safety following the
school shooting at Santa Fe
High School in south Texas
this month that left 10 dead
and 13 injured. About $120
million in funding, including a
mix of federal and state dol-
lars, has been identified to be-
gin work under the plan.
“We must take steps to en-
hance gun safety in the state
of Texas,” Mr. Abbott said.
Some of Mr. Abbott’s pro-
posals would need legislative
approval, including one that
entails increasing penalties for
violating gun storage laws and
raising the age of children con-
sidered minors when it comes
to holding their parents crimi-
nally liable if they use a fire-
arm that hadn’t been properly
secured.
It is unclear how Texas’ Re-
publican-dominated Legisla-
ture will respond to his recom-
mendations. Some lawmakers
have spoken out against gun-
control measures. The gover-
nor hasn’t ruled out calling a
special session to get his mea-
sures considered instead of
waiting until the regular ses-
sion convenes in January.
The National Rifle Associa-
tion and the Texas State Rifle
Association didn’t respond to
requests for comment.
Currently, minors are con-
sidered those age 16 and under
when pertaining to the state’s
firearm storage law. Mr. Ab-
bott’s plan would raise that to
include anyone 17 and under.
He noted that the parents of
the 17-year-old accused in the
mass shooting at Santa Fe
High weren’t obligated to se-
curely store their firearms un-
der current law.
Penalties for violating the
law in instances of death or se-
rious bodily injury would be
increased to a felony instead of
being just a misdemeanor.
Mr. Abbott also wants Texas
Senate and House leaders to
consider the merits of adopting
a “red flag” law that would al-
low law enforcement, a family
member, school employee, or a
district attorney to file a peti-
tion seeking the removal of
firearms from a potentially
dangerous person, after legal
due process is provided.
PAUL BUCK/EPA/SHUTTERSTOCK
proved, it would maintain a re-
lationship with Bridgepoint. The
school, which operates online,
would contract with Bridge-
point to provide many academic
and technical services. Critics
say that arrangement doesn’t
adequately divorce the school
from profit incentives.
“The purpose of a nonprofit
is to ensure there is a shield
between profit making and de-
cisions that are good for stu-
dents,” said Bob Shireman, a
former Obama-administration
higher-education official.
A Bridgepoint spokesman
said Ashford wouldn’t have
any ties with Bridgepoint and
could find a different online-
services vendor.
 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.

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THE WALL STREET JOURNAL. * * * * * * Thursday, May 31, 2018 | A7

WORLD NEWS
U.S. Bombing Hits Taliban in the Wallet
Airstrikes hammer at
Afghan insurgents’ Allies Have Tried
opium labs, tax points Different Tacks in
to choke off revenue Fighting Drug Trade

BY MICHAEL M. PHILLIPS Afghanistan is the world’s

largest producer of opium,
KABUL—The U.S. has re- which is refined into mor-
tooled its aerial bombing cam- phine and heroin.
paign in Afghanistan to target Since 2001, the U.S. has
the Taliban’s sources of pursued a variety of policies
money, not just its fighters. toward Afghanistan’s drug
Since the strategic bombing growers and traffickers. Early
campaign began in November, on, U.S. forces teamed up
MICHAEL M. PHILLIPS/THE WALL STREET JOURNAL

U.S. aircraft have conducted with warlords who were

113 strikes aimed at cutting off themselves involved in the
revenue the Taliban allegedly narcotics trade, according to a
receive from opium poppies report by the independent Af-
and roadside taxes, a major ghanistan Analysts Network.
shift in war strategy intended The U.K., which led initial
to drive the insurgents to the antidrug efforts for the
negotiating table. West’s alliance in Afghani-
The strategy is to “go after stan, emphasized paying
the Taliban in a way that they farmers to eradicate their
had never been pressured be- own crops. In 2008, the U.S.
fore,” said U.S. Air Force Brig. persuaded allies to authorize
Gen. Lance Bunch. troops to kill traffickers linked
The air campaign is mod- An F-16 takes off from Bagram Air Field in Afghanistan, a base of operations for U.S. strikes against the Taliban’s financial resources. to insurgents, the report said.
eled on the successful fight At the height of the
waged in recent years against nounced in August, loosened And American officers say the insurgent group uses to American forces’ presence,
Islamic State in Syria and Iraq, restrictions on American oper- they may add illegal mining Funding Source pay fighters and purchase from 2010 to 2012, frontline
where U.S. aircraft regularly ations in Afghanistan, an ef- operations to the target list. Opium poppy cultivation, a weapons, he said. troops prioritized the war on
attacked refineries, tanker fort to break the stalemate in But most counter-revenue major revenue generator for The bombing campaign so insurgents over the war on
trucks and other infrastruc- a war now in its 17th year. Un- airstrikes—which still make up the Taliban, reached record far has deprived the Taliban of drugs. U.S. Marines routinely
ture that provided the mili- der previous rules, for in- a small portion of overall U.S. levels in Afghanistan last year. $44 million, he said. patrolled through Helmand
tants millions of dollars in oil stance, U.S. aircraft could tar- air missions—are aimed at “You’re not just going to province, largely ignoring the
revenue. It even harks back to get militants if they were labs that process the raw 300 thousand hectares bomb [the Taliban] into sub- sprawling fields of pink and
World War II, when Allied threatening or fighting allied opium produced by Afghani- mission,” U.S. Air Force Maj. white poppies around them.

.
bombers went after German troops. (Special-operations stan’s vast poppy fields. Af- Gen. James Hecker said in Ironically, those farms

and Japanese industry. forces also direct airstrikes at
In a typical recent strike, a key figures in insurgent and
pair of F-16s took off from Ba- terror groups, such as Islamic
gram Air Field and flew south State.) onground raid drug bazaars.
to Helmand province, the Under the new strategic-
heart of Afghan poppy produc- bombing policy, U.S. jets can
tion. The target was a drug attack insurgents wherever
lab housed in a mud-walled they are found, and attempt to
us l,
ghan military aircraft conduct
strikes as well, and Afghan
counternarcotics troops on the
The Taliban deny any con-
nection to the drug trade.
“At the time of our govern-
ment, poppy cultivation was
ly
200 February, during the early
days of the strategic-bombing
campaign. “But it is another
pressure point that we can put
100
on them.”
Johnny Walsh, lead Afghan-
istan expert at the U.S. Insti-
0 tute of Peace, an independent
were watered by the Kajaki
Dam and the expansive irriga-
tion system downstream
from it—projects built with
U.S. agricultural-aid money in
the 1960s.
The allies came to em-
brace both interdiction and

compound perhaps 100 feet by destroy Taliban weapons down to zero,” said Zabiullah 2000 ’10 ’17 organization established by eradication, provoking worry
100 feet, according to the mili- caches, command facilities and Mujahid, a spokesman for the Congress to provide peace-re- among the troops on the
al a

Note: One hectare = 2.47 acres

e
tary. revenue sources.
Once airborne, the lead pi- “Anywhere in the country
lot was able to use electronic where they previously thought
ci on
group, which ruled Afghani- Source: United Nations Office on Drugs and lated training and analysis, ground that the campaign
stan with its own harsh inter- Crime said the Taliban “are both ex- was alienating local farmers
pretation of Islamic law before THE WALL STREET JOURNAL. tremely ideological, and they and creating recruits for the

sensors to spot buildings and they felt safe or could have
piles of plants in the open freedom of movement, we now
yard. Both planes dropped had the authorities to go and
bombs on the compound. “The target,” Gen. Bunch said in an
buildings were completely de- interview.
er rs
the 2001 U.S.-led invasion.
“With the arrival of the invad-
ers, this phenomenon was re-
born. American generals and
senior intelligence officials,
and keep the trade going.”
The U.S. military, however,
estimates the Taliban get 50%
to 60% of their revenue from
benefit to the extreme from
the drug trade.”
“They can’t raise money
with ideology, and they can’t
recruit with drugs,” he said.
Taliban.
“Destroying poppy har-
vests won’t help unless an al-
ternative is provided to the
poor and vulnerable farmers,”

stroyed,” said the pilot. U.S. aircraft have hit road along with Kabul government narcotics, according to Gen. —Habib Totakhil said Zabiullah Mujahid, a
President Donald Trump’s checkpoints where insurgents ministers and lawmakers, are Bunch. That represents about and Craig Nelson spokesman for the Taliban.
South Asia strategy, an- collect money from passersby. involved in opium trafficking $320 million a year in funds contributed to this article.
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U.S. STATE DEPARTMENT

n-

North Korea’s Kim Yong Chol, left, met in New York with Secretary of State Mike Pompeo, center.
no

Talks Aim to Put Summit

With North Korea on Track
Secretary of State Mike exchange for security assur- process involving concessions
Pompeo opened two days of ances and economic relief. from both sides at each stage.
high-level talks with a senior In a sobering assessment in U.S. officials declined to
North Korean official Wednes- Seoul, a senior South Korean spell out the details of the on-
day night, as the Trump ad- official warned that a deal be- going talks but they didn’t
ministration tries to establish tween Washington and Pyong- minimize the challenge of nar-
whether there is enough com-
mon ground to proceed with a
yang still faced big obstacles.
“The differences between
rowing the differences be-
tween the two sides so that a
Head of the Class
summit meeting in Singapore
next month.
North Korea and the U.S. re-
main quite significant. It
summit can take place.
“In order for a summit to
Norman Rockwell
won’t be easy to narrow the be successful the North Kore-
gap and find common ground, ans have to do things that
Post cover. Incredible size. Rockwellian
By Michael R. Gordon
in New York and but I think it would not be im- they have not done before,” nostalgia. The boundless optimism of
Andrew Jeong in Seoul possible,” the South’s unifica- the senior State Department graduation is masterfully rendered in this
tion minister, Cho Myoung- official said. monumental original oil on canvas entitled
The discussions began with gyon, said in a speech to Mr. Pompeo’s dinner meet- Boy Graduate. Featured on the June 6, 1959
a dinner Mr. Pompeo hosted European diplomats on ing took place as a U.S. ad- cover of the Saturday Evening Post, this is one of
for Gen. Kim Yong Chol, who Wednesday. vance team met Wednesday in the handful of works in which the artist’s son,
is often described as the right- Public statements by each Singapore with North Korean
hand man to North Korean side indicate that one major officials to discuss logistical Tom, served as the model. Standing over 6
leader Kim Jong Un and is preparations. feet high, this painting is also one of Rockwell’s
making his first visit to the Plans for a summit were largest, perhaps attesting to the affection and
U.S. His arrival on Wednesday
made him the highest-ranking
Differences remain on briefly shelved last week when
President Donald Trump sent
pride Rockwell felt for his son. Painted 1959.
Signed (lower right). Canvas: 745/8”h x 361/8”w;
North Korean to visit the U.S. the terms on which the North Korean leader, Mr. Frame: 831/8”h x 441/4”w. #30-7403
in 18 years.
Mr. Pompeo and Gen. Kim
the North might give Kim, a letter complaining
about the “open hostility” of
are planning to meet for more up its nuclear arsenal. the North Korean regime.
in-depth talks Thursday. That was followed by a
“We want to see if we have statement by Kim Kye Gwan, a
the makings of a successful senior North Korean foreign
summit,” said a senior State obstacle is the pace of disar- ministry official, who ex-
Department official. mament. The U.S. is pushing pressed Pyongyang’s willing- 630 Royal Street, New Orleans, Louisiana • 888-767-9190 • ws@rauantiques.com • rauantiques.com
With less than two weeks the regime to commit to “com- ness to “resolve issues any-
left before the planned June plete, verifiable and irrevers- time and in any format.” The Since 1912, M.S. Rau Antiques has specialized in the world’s finest art, antiques and jewelry.
12 summit, significant differ- ible” denuclearization as State Department official on Backed by our unprecedented 125% Guarantee, we stand behind each and every piece.
ences remain over the terms quickly as possible, while the Wednesday described it as the
on which Pyongyang might North Korean leader, Mr. Kim, most conciliatory North Korea
give up its nuclear arsenal in has described a more phased statement in recent memory.
 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.

A8 | Thursday, May 31, 2018 THE WALL STREET JOURNAL.

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 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.
THE WALL STREET JOURNAL.
Spain
Briefly
Holds Foe
Of Putin
Spanish police detained a
critic of the Russian govern-
ment in Madrid, acting on a
request from Moscow, high-
lighting the Kremlin’s at-
tempts to intimidate its foes.
By Jeannette
Neumann in Madrid
and James Marson
in Moscow
Bill Browder, a U.S.-born in-
vestor, was arrested on what
police and Mr. Browder said
was a request from Russia. Po-
lice soon released him.
Shortly after, Mr. Browder
tweeted: “Spanish National
Police just released me after
[the] Interpol General Secre-
tary in Lyon advised them not
to honor the new Russian In-
terpol Red Notice.”
The Kremlin didn’t respond
to a request to comment.
Mr. Browder has lobbied
the West for laws to punish
Russian human-rights viola-
tions. Mr. Browder is the
founder of Hermitage Capital
Management, formerly a major
investor in Russia. He became
a critic of high-level corrup-
tion in Russia and was barred
from the country in 2005.
Sergei Magnitsky, a Hermit-
age auditor, accused Russia of
large-scale fraud and died in a
Russian jail after he was ar-
rested for alleged tax evasion.
Russia accused Mr. Browder
of directing the fraud and con-
victed him of tax evasion as
well. Russia has repeatedly
sought to use Interpol to have
Mr. Browder extradited.
WORLDWATCH
INDIA
U.S. Pacific Command Hamas Declares
Gets a Name Change A Truce With Israel
In a symbolic nod toward In-
dia, the U.S. military changed the
name of the military headquar-
ters covering Asia and the Pa-
cific Ocean from Pacific Com-
mand to Indo-Pacific Command.
Adm. Philip Davidson took
over the newly named command
at a ceremony in Pearl Harbor
attended by Defense Secretary
Jim Mattis and Marine Gen. Joe
Dunford, the chairman of the
Joint Chiefs of Staff.
Adm. Davidson’s predecessor,
Adm. Harry Harris, has been
nominated to become the next
U.S. ambassador to South Korea.
The change in name doesn’t
mean an immediate movement
of U.S. ships or fleet command
postings, defense officials said.
Rather, it is an attempt to im-
prove the U.S.-India alliance. In-
dia has historically relied on Rus-
sia for its weapons and
increasingly is cooperating eco-
nomically with China.
no
However, the name change
also reflects the Pentagon’s Na-
tional Defense Strategy, which
was released earlier this year
and called for a U.S. military
pivot toward threats from nation
states, especially Russia and
China..
—Nancy A. Youssef
BONDS
Continued from Page One
erratically rising, interest rates
and strong demand for in-
come-generating investments.
“Even for unconstrained
bond funds, it’s rare for such a
sharp decline,” said Todd
Rosenbluth, director of ETF &
mutual fund research at CFRA.
Mr. Gross gained a global
following in part for making
bold predictions on the mar-
kets—and placing outsize bets
on those convictions. In 2011,
as manager of the world’s
largest bond fund at Pimco, he
famously sold all of his U.S.
Treasury holdings and used
derivatives to place wagers
against government-related
bonds. Those trades, among
others, left Mr. Gross’s funds
far more susceptible to wrong-
way bets than his peers, for-
mer colleagues have said.
Slumping performance, cli-
ent defections and a feud with
some of his colleagues greased
his exit from Pimco, a firm he
co-founded decades earlier. He
* * * *
‘Dead’ Reporter Tells Lively Tale
Russian journalist who
was thought killed in
Kiev emerges to say
he was part of a sting
BY JAMES MARSON
The reported murder of
Russian journalist Arkady Bab-
chenko at the door of his Kiev
apartment late Tuesday ap-
peared to be another case of a
Kremlin critic turning up dead.
A photo apparently showing
the balding 41-year-old in a
pool of blood was shared on
Ukrainian websites and social
media. Foreign governments
registered their outrage. Rus-
sia and Ukraine traded blame.
But then he showed up
alive and well in public.
The journalist, who most
recently has been working for
a Ukrainian television channel,
stepped out at a press confer-
ence on Wednesday—ostensi-
bly organized to discuss his
killing—to gasps from report-
ers and said it had all been
part of an elaborate ruse put
on by Ukrainian authorities to
catch the organizers of the al-
leged planned hit.
Mr. Babchenko’s appearance
was the latest bizarre chapter
in the conflict between
Ukraine and Russia, which has
fought a covert war in its
neighbor’s east since 2014.
Ukraine has long accused
Russia of lying about sending
troops across the border and
using slanted or false report-
ing to fuel fighting.
Western and Ukrainian offi-
cials have said Russia kills
critics at home and abroad, in-
cluding Boris Nemtsov, a Rus-
us l,
sian opposition leader who
was gunned down on a bridge
al a
e
near the Kremlin in 2015, for-
ci on
GAZA STRIP
er rs
Gaza’s ruler Hamas declared a
m e
unilateral cease-fire with Israel,
after a day of shelling from the
Palestinian territory and retalia-
m rp
tory strikes raised concerns of a
wider conflict.
Israel denied agreeing to a
cease-fire, but officials indicated
they would only strike in re-
co Fo
sponse to attacks.
The pause on Wednesday
came a day after Israeli jets hit
dozens of targets belonging to
Hamas and another militant
group, Palestinian Islamic Jihad,
responding to firing by militants
in Gaza that Israel said was the
most intense since a 50-day war
in 2014.
Hazem Qasem, a Hamas
spokesman, said the truce fol-
lowed mediation from Egypt and
other countries. He said Egypt
n-
communicated to Israel that
Hamas seeks a recommitment
to the 2014 cease-fire. A
spokesman for Egypt’s Foreign
Ministry declined to comment.
“We want to maintain the old
rules of engagement and not to
have new ones,” he said. “They
(Egyptians) took our message to
the Israelis then things calmed
down,” he said.
—Felicia Schwartz
and Dov Lieber
jumped in 2014 to the smaller
Janus Capital Group Inc.,
where the Unconstrained Bond
Fund manages $2.08 billion.
That is down from its peak
this year of $2.23 billion.
Mr. Rosenbluth said Mr.
Gross may have been caught
flat-footed during Tuesday’s
selloff of Italian bonds. He had
argued that the yields on ul-
trasafe German bonds would
rise, reflecting improving eco-
nomic prospects throughout
Europe and an increased will-
ingness among investors to
take on risk.
Instead, the spread between
yields on Italian and German
10-year bonds hit 2.83 points
on Tuesday, widening from
2.05 on Friday and 1.57 in
early 2018.
The spread between Italian
and German bonds was un-
changed at 2.828 points on
Wednesday, Thomson Reuters
said. Stock benchmarks in Eu-
rope and the U.S. edged higher.
Calls to a spokeswoman
with Janus Henderson Group
PLC, formed through the 2017
merger between Janus and the
U.K.’s Henderson Group,
WORLD NEWS
Ukrainian President Petro Poroshenko met with Russian journalist Arkady Babchenko, who turned up alive in Kiev on Wednesday.
mer intelligence agent Alek-
sandr Litvinenko, who suc-
cumbed to a radioactive
isotope in London in 2006,
and a former Russian law-
maker who was shot outside a
luxury hotel in Kiev last year.
The British government has
said Russia was behind the at-
tempted killing of a former
Russian agent with a nerve
agent in England this year.
Such attacks are supposed
to act as a warning to Kremlin
critics that they aren’t safe
on anywhere, Western officials
and some analysts say. Russia
denies involvement in the inci-
dents, saying they are an at-
tempt to discredit Moscow. A
Russian Foreign Ministry
spokeswoman hit back at
Ukraine on Wednesday, calling
Italy’s President Tries to Make a Deal
BY GIOVANNI LEGORANO
ROME—A political impasse
in Italy that rattled global mar-
kets and unsettled the country’s
European partners continued
through a fourth day, as Italian
President Sergio Mattarella
searched for a way to foster the
creation of a new government
and stave off fresh elections.
Mr. Mattarella was consid-
ering Wednesday the possibil-
ity of reviving a coalition gov-
ernment supported by Italy’s
two large antiestablishment
parties—the 5 Star Movement
and the League—that had
seemed poised to take power
last weekend. However, with
tensions running high and
some political leaders pushing
for quick elections, events in
Italy remained fluid.
Over the weekend, Mr. Mat-
tarella rejected a euroskeptic
figure the 5 Star and the
League had chosen as economy
minister for a coalition gov-
ernment that appeared close
to taking power.
That veto caused the coali-
tion to collapse, pitching Italy
into political chaos and raising
the possibility of a fresh ballot
less than three months after
parliamentary elections.
But late Wednesday, Luigi Di
Maio, the leader of the 5 Star
Movement, sought a way to re-
FROM PAGE ONE
MISHA FRIEDMAN/BLOOMBERG NEWS
Bill Gross, once the ‘Bond King,’
had a rocky day Tuesday.
weren’t returned. Reached
through a spokesman, Mr.
Gross declined to comment.
Italian President Sergio
Mattarella’s move on Sunday
to block the formation of a eu-
roskeptic coalition govern-
ment has reignited fears that
the continent’s third-largest
economy would exit the cur-
rency union, a concern that
rattled markets because any
move to drop the euro or de-
Thursday, May 31, 2018 | A9
MYKOLA LAZARENKO/UKRAINIAN PRESIDENTIAL PRESS SERVICE/REUTERS
the operation an attempt to and that he had agreed to take eastern Ukraine in return for
score propaganda points. part in an operation designed the killing, and played a video
Some media-rights organiza- to catch the plotters. he said showed the handover of
tions criticized Ukrainian au- Ukrainian security officials half the cash. The alleged orga-
thorities for spreading false in- said Russian security services nizer of the plot was detained
formation, but officials had been behind the plot to three hours before the press
defended their efforts as neces- kill Mr. Babchenko, a critic of conference, Mr. Hrytsak said.
sary to catch the chain of people the Kremlin’s wars in Ukraine Anton Herashchenko, an ad-
who arranged the attempted hit, and Syria who fled Russia last viser to Ukraine’s interior min-
which they said led to Russia. year amid threats against him. ister, said authorities had faked
Mr. Babchenko was contrite Russia denied the accusation. Mr. Babchenko’s death to con-
.
after emerging at the press Vasyl Hrytsak, the head of vince those who had organized
ly
conference. “First of all, I’d like the SBU, said he had evidence it that it had happened and en-
to apologize for what you had that Russian security services able law-enforcement officials
to live through…because I know had recruited a Ukrainian citi- to uncover the alleged plot.
the sickening feeling when you zen to organize the attempt on Late Tuesday, Mr. Herash-
have to bury colleagues,” Mr. Mr. Babchenko’s life, and that chenko had written that Mr.
Babchenko told reporters. the journalist was the first of Babchenko had been shot in
Mr. Babchenko said the Se- as many as 30 planned targets. the back by an assailant and
curity Service of Ukraine, or Mr. Hrytsak said the man of- had died in an ambulance.
SBU, had approached him a fered $30,000 to an acquain- “There was no other way,”
month ago with information tance who had fought for Mr. Herashchenko wrote on
about a threat against his life Ukrainian government forces in his Facebook page.
millions of Italians welcomed
its fierce criticism of Brussels
and a virulently anti-immigra-
tion message. The two populist
parties banded together this
ANDREAS SOLARO/AGENCE FRANCE-PRESSE/GETTY IMAGES
month to try to form a coali-
tion government.
In the wake of the collapse
of the 5 Star-League proposal
to govern, Mr. Mattarella on
Monday asked Carlo Cottarelli,
an economist and former In-
ternational Monetary Fund of-
ficial, to attempt to form a
new caretaker government
that would likely have lasted
only a few months—long
enough to pilot the country to
fresh elections.
However, none of the major
Caretaker Prime Minister Carlo Cottarelli, right, leaves Parliament. parties supported such a solu-
tion, forcing Mr. Mattarella to
suscitate the coalition govern- hold fresh elections. search for another way out of
ment with the League. The League’s leader, Matteo the impasse.
After meeting informally Salvini, told his supporters at a Political leaders met
with the president in the after- rally he would think about Mr. through the night to discuss
noon, he proposed to the Di Maio’s proposal. possible solutions, ranging
League the formation of a gov- According to an official at from a new 5 Star-League gov-
ernment supported by both the president’s office, Mr. Mat- ernment to fresh national elec-
parties with a different econ- tarella is assessing this new op- tions as soon as July.
omy minister. Paolo Savona, tion “with great attention.” On Wednesday, Mr. Cottarelli
the 81-year-old economist The 5 Star Movement, an an- met with the president twice to
originally put forward for the tiestablishment party that has discuss how to move forward.
economic post, could still be a ridden a wave of anger at It- The president decided to give 5
member of their government aly’s political establishment and Star and the League more time
but could occupy a different the European Union, emerged to strike a new agreement to
ministerial position, Mr. Di from the March 4 election as form a government together.
Maio said. the single largest party.
The alternative, he said, The League, a hard-right na-  European lenders face new
would be having the country tivist party, also surged, as shock............................................ B10
Falling Kingdom?
Asset growth at Bill Gross's
Unconstrained Bond Fund
AQR Capital Management’s
$10 billion Managed Future
Strategy, the biggest of the
group, dropped 2.1% on Tues-
formed Mr. Gross.
Italian bonds account for
20% of the iShares Interna-
tional High Yield Bond ETF,
day on losses from its shorts, which fell 1.7% on Tuesday.
$2.5 billion or bearish bets, on U.S. gov- The $11.8 billion Vanguard To-
ernment-bond futures. tal International Bond ETF,
2.0 The LoCorr Market Trend which has 8.3% of its portfolio
Fund, another managed-fu- in Italian debt, slid just 0.22%.
1.5 tures fund, declined 2.2%, “In a diversified bond port-
while the Equinox Campbell folio, where you had some It-
1.0 Strategy Fund fell 2.51%. aly exposure, you generally
Many traditional bond held up OK,” Ms. Sjoblom said.
0.5 funds fared better. In his first-quarter letter,
The $2.1 billion Pimco Ac- Mr. Gross said European inves-
tive Bond ETF, an exchange- tors had “piled into the re-
0
traded fund once run by Mr. gion’s safe havens, namely
2014 ’15 ’16 ’17 ’18 Gross, rose 0.6% on Tuesday. German Bunds,” earlier this
Source: Morningstar The $3.2 billion SPDR Double- year after stocks declined
THE WALL STREET JOURNAL. Line Total Return Tactical sharply, Mr. Gross wrote. Ger-
ETF, run by DoubleLine Capi- man bond yields, which had
fault on existing bonds could tal LP’s Jeff Gundlach, also been on the rise as the na-
fuel significant losses among gained 0.6%. tion’s economic picture im-
European lenders and impair Morningstar’s director of proved, also plummeted, he
economic growth. fixed-income manager re- said.
Mr. Gross’s Global Uncon- search, Miriam Sjoblom, noted “Given these conditions, it
strained Bond wasn’t the only that the Pimco and DoubleLine is difficult to find the rationale
mutual fund caught up in the ETFs are two of a breed of ac- for [10-year] Bunds to be
selloff. Managed-futures funds, tively managed funds that yielding just 0.50% and yields
which bet that market trends rarely make the sort of eso- on German government debt
will continue, also fell sharply teric bets that likely hurt Mr. up to six years in maturity to
as one of those themes—rising Gross’s performance. But even be negative,” he wrote.
U.S. interest rates—reversed some ETFs with sizable alloca- — Asjylyn Loder
course. tions to Italian debt outper- contributed to this article.
 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.

A10 | Thursday, May 31, 2018 THE WALL STREET JOURNAL.

IN DEPTH

HOLE Persin, 24, who has 4.3 mil-

lion YouTube subscribers. He
temporarily filled a pothole
with white orchids for a video
Continued from Page One that drew 949,000 views. It
Potholes across the U.S. showed an SUV swerve away.
are flourishing, with aging While popular online, such
roads pummeled by harsh stunts endanger drivers, New
weather and larger-than-aver- York City spokeswoman Alana
age temperature swings. Re- Morales said: “We encourage
pair crews seem to exit each the public to report road de-
winter deeper in the hole. fects to 311.”
New York City last year had New York City Mayor Bill
more than triple the number de Blasio said this month that
of reported potholes com- after years of neglect, the
pared with the mid-1990s. city’s $1.6 billion “Pave, Baby,
Activists are trying differ- Pave” resurfacing program
ent ways to fill the gap. You- has reduced the number of
Tube prankster Coby Persin city potholes to 236,000 from
said he popped a tire on his a peak of 421,000 in 2014.
Maserati in Midtown Manhat- Elsewhere in the U.S., pot-
tan before hitting on an idea. hole activists have posted In-
Figuring it would take a New stagram photos of toy boats
York City crew months to fix and rubber ducks bobbing in
the pothole, he filled it with a water-filled potholes, hoping
potted plant. to draw government attention
“Had I seen a plant inside and repair crews.
the pothole, I would have In Chicago, artist Jim Ba-
drove around,” said Mr. chor has covered nearly 50
Traffic cone
in pothole.
potholes with colored tile mo-
saics, sunk in concrete. The
finished repairs show designs
of flowers, ice cream bars and
popsicles. One is marked:
“This is not a pothole.”
Mr. Bachor plans to release
a self-published book of his
work this summer, as well as
lead bike tours of the repairs.
He was inspired by a visit to
Pompeii, Italy, where he saw
surviving mosaics of glass
and marble.
When a pothole opened up
on his street a few years ago,
he thought any material that
survived a volcano could
withstand snow, heat and
traffic.
For his first repair, Mr. Ba-
chor borrowed his sons’ soc-
cer cones to block the street
and began work after mid-
this summer. “Everyone can
relate to them,” he said.
In California, the Santa
Cruz Vigilante Pothole Bri-
take photos of potholes and
tweet them at public-works
departments. The cities of Ra-
leigh, N.C., and Eden Prairie,
night. He liked it—and went gade wear hard hats and use Minn., ask residents to mark
on to repair another and an- walkie-talkies while they fill potholes on a map using the
other. He starting working holes on rough roads. The SeeClickFix mobile app.
days, dressed in a reflective group of stay-at-home par- In New Orleans, a city
vest. ents and remote workers, led spokeswoman said pothole
“People really don’t care,” by a retired tech executive, repairs were best left to city
he said. “I just look like a guy hit a bump when they asked workers. “While we appreci-
working too long fixing one for official permission. ate their ‘can do’ spirit, we
pothole.” After some coaching on ask people to recognize and
City officials in Chicago traffic control by members of follow the system that is in
didn’t respond to requests for the local volunteer fire de- place,” she said, by reporting
comment. partment, they asked Santa potholes to the city’s 311
Mr. Bachor recalled the Cruz County officials if they line.
time he thought authorities could start a volunteer public Ms. Cool and the rest of
would put a lid on his work: works department. the Marigny Muckrakers told
“I sense a big car pulling up “Their heart is in the right the city that they planned to
to me, and I try to avoid eye place, but safety wise, it’s just fix the pothole after their re-
contact, and sure enough it’s not something the county can quests for help over the past
a cop. He said, ‘Are you that sanction,” county spokesman year went unanswered.
pothole guy?’” Jason Hoppin said. “To do so The city said neighbors
After giving a compliment, is to encourage people to run needed a $250 permit to tem-
the officer moved on, said Mr. out in the middle of the road porarily close the street.
Bachor. He raised $13,000 for with heavy equipment.” “We were like, ‘We’re not
a trip to New York City, where Some cities enlist volun- paying you so we can get this
he plans to fill five potholes teers by asking residents to job done,’ ” Ms. Cool said.

MEXICO Prohibitive Favorite

Poll results leading up to
Mexico's presidential election
Continued from Page One 50%
rador who as Mexico City
Andrés Manuel López Obrador
mayor proved to be a prag- 45
matic manager, joining with
telecom magnate Carlos Slim 40
to restore down-at-the-heels
neighborhoods. 35
Mr. López Obrador and an Ricardo Anaya
aide didn’t respond to multiple 30
requests for an interview.
The stakes are almost as 25
high for the U.S. as for Mexico.
ARTURO MONROY/NOTIMEX/NEWSCOM/ZUMA PRESS

.
In the past quarter-century, 20

ly
Mexico has gone from being a José Antonio Meade
15
distant and standoffish neigh-
bor with periodic economic cri- O N D J F M A M
ses to a close political ally and on Source: Consulta Mitofsky
key economic partner. The re- THE WALL STREET JOURNAL.
lationship has endured even
during recent disagreements media can resist his personal
over immigration and the power.”
us l,

North American Free Trade Mr. López Obrador was born

Agreement prompted by the in 1953 in Macuspana, a slap-
al a
e
combative stance of the Trump dash city of some 50,000 peo-
administration. ple surrounded by swamps, riv-
All that may change if Mr. Andrés Manuel López Obrador, seen at a recent campaign rally in Mexico City, says he will end the ‘long dark night of neoliberalism.’ ers and large cattle ranches.
ci on

López Obrador becomes presi- The eldest of seven, he used

dent. been plagued by scandals. Half
“López Obrador will be fo- a dozen PRI state governors
cused on Mexico first,” said stand accused of embezzling
Andrew Selee, president of the hundreds of millions of dollars.
er rs
to play third base and center
Diverging Trends field in improvised baseball
Mexico's growing commerce with the U.S. has helped drive down poverty rates, but violent crime is soaring. games. His childhood idol was
Dodgers pitcher Sandy Koufax,

Washington-based Migration Out-of-control criminal vio- Total trade with U.S. Percentage of Mexicans living Murders said Félix Ramos, a former
Policy Institute, and author of lence and persistent poverty in poverty* teammate.
“Vanishing Frontiers,” a book have added to a hunger for $600 billion 60% 30,000 Mr. López Obrador’s bucolic
about the Mexican-U.S. rela- change. youth was marred by the death
m e

tionship. “Unlike recent Mexi- “The context couldn’t be Total

500 trade
Exports to U.S.
50 25,000 of one of his brothers, José Ra-
can governments, who saw the better for him. The greater the Imports mon, who killed himself in an
U.S. as a big force in Mexico’s public unrest, the better for from U.S. apparent gun accident and died
m rp

400 40 20,000
economic future, he doesn’t see López Obrador,” said political in the future politician’s arms
a major role for the U.S. in analyst and columnist Jesús Living on in their parents’ store.
300 30 $5.50 or 15,000
Mexico’s economy.” Silva-Herzog. As a college student at the
less a day
During his more than 40 200 20 10,000 national public university, Mr.
years in public life, Mr. López López Obrador was good at
Shared traits
co Fo

Obrador has become the coun-
On the campaign, Mr. López try’s best-known politician.
Obrador has said he would Before his quest for the
treat President Donald Trump presidency, Mr. López Obrador
with “caution and respect.” The made mass mobilization and
two men share more than a confrontation his trademark. In
few traits: Both are highly the 1990s, he led thousands of
gifted marketers and economic followers in three separate pro-
nationalists with an instinct for test caravans, each time walk-
overturning political conven- ing hundreds of miles from
tion. Mr. López Obrador has coastal Tabasco, the lush, oil-
found common ground with the producing state of his birth, to
U.S. president, agreeing that Mexico City.
the new Nafta should lift Mexi- In 2006, protesting what he
n-
$3.20 history and political philosophy
100 10 or less 5,000
but had to retake statistics and
0 0 $1.90 0 mathematics, according to a
or less copy of his grades. It took him
1990 ’95 2000 ’05 ’10 ’15 1995 2000 ’05 ’10 ’15 2000 ’05 ’10 ’15 14 years to graduate, getting a
*In 2011 dollars adjusted for purchasing-power-parity 7.7 grade average out of 10. (Six
Sources: Census Bureau (trade); World Bank (poverty); Mexico's interior ministry (murder) THE WALL STREET JOURNAL. is a passing grade.)
saved to pay for a major public in the country’s oil industry, tion on whether to throw him
works program, as well as pen- which is expected to bring $150 out of his job. He also wants a Primitive conditions
sions for old people and billion to the energy sector. new “constitution of morals” As a young PRI politician,
monthly wages for a country- Such talk reminds many alongside Mexico’s current con- he lived five years among
wide apprenticeship program Mexicans of President Luis stitution, drafted by “philoso- Chontal Indians, enduring
for two million unemployed Echeverría, who governed Mex- phers, anthropologists, psy- primitive conditions in a vir-

can workers’ wages. said was a rigged election, he young people. ico in the 1970s. Mr. Echeverría chologists, specialists, writers, tual swamp, and promoted
Mr. López Obrador has also sent thousands of supporters His government, he says, combined import-substitution poets, activists, Native Ameri- economic development proj-
promised to respond in kind if to occupy Reforma, Mexico will be marked by austerity. He policies, sharply increased gov- cans, and leaders of different ects. Forty years later, people
Mr. Trump persists in belit- City’s elegant, tree-lined boule- plans to move out of the presi- ernment spending and socialist religions.” in the area still remember his
no

tling Mexico—even vowing to vard. They pitched hundreds of dential mansion, Los Pinos, and rhetoric. The story ended The Tabasco politician has work. “He was the first to help
engage in Twitter warfare tents, blocking the city’s main rent a house. He has said he badly: Inflation skyrocketed often cast himself in religious us,” said Jose Reyes, a commu-
with the U.S. president. In his artery for two months. doesn’t have a credit card or and the government devalued terms, lacing speeches with nity leader.
strongest comments about Mr. checking account. the peso for the first time in 22 biblical metaphors. He twice Mr. López Obrador was
Trump during a speech last Despite this apparent per- years. called his 1990 marches an “Ex- named head of the PRI in Ta-
year in Los Angeles, Mr. López ‘Dark night’ sonal austerity, many fear Mr. odus,” and has named his basco state in 1983. But he
Obrador said Mr. Trump’s Now, he promises a “Fourth López Obrador wants to return youngest son Jesús Ernesto— soon faced a rebellion from
anti-immigrant rhetoric was
racist, xenophobic and “neo-
Transformation” for Mexico,
which will, he says, end the
Mexico to the state-directed
economy favored during the
Some see an echo of for the Christian savior and the
Argentine revolutionary Er-
mayors who rebuffed his at-
tempts to gain oversight over
fascist.” “long dark night of neoliberal- long rule of the ruling PRI the populist tactics of nesto “Che” Guevara. their spending. The governor
A senior administration offi-
cial said the White House
ism”—a reference to the de-
cades since Mexico privatized
party during the 20th century,
when the government gave
the late Venezuelan “It’s an immense joy to form
part of this movement to build,
removed him.
Increasingly disillusioned by
wouldn’t comment on individ- most state companies. He sees powerful interest groups con- ruler Hugo Chávez. here on earth, the kingdom of the PRI, he left the party in
ual candidates. “We look for- his coming to power as the cul- trol over key sectors of the justice and brotherhood,” said 1988 and joined a breakaway
ward to having a cordial and mination of Mexico’s epic his- economy. He has pledged to Mr. López Obrador in a 2016 leftist movement headed by
productive relationship with tory of struggle against power- cancel Mexico’s recent educa- speech. His own party is the Cuauhtémoc Cárdenas, the son
whomever the Mexican people ful elites which have kept tens tion overhaul, which tried to In what some see as an echo Movement of National Regen- of former President Lázaro
choose as their next president, of millions of people in misery. bring the powerful teacher of the populist tactics of the eration, whose acronym, Mo- Cárdenas, one of Mr. López Ob-
and we will continue to seek “We live in a fake republic,” union to heel by establishing late Venezuelan ruler Hugo rena, is a reference to Mexico’s rador’s heroes for having ex-
ways to strengthen our rela- he often says at rallies across merit-based exams. Chávez, Mr. López Obrador dark-skinned national patron, propriated the oil industry in
tionship with Mexico—one of the country. Foreign investors are ner- says he plans to have Mexicans the Virgin of Guadalupe. 1938.
our most important partners,” Mr. López Obrador pledges vous about Mr. López Obra- vote on key policies by means The former Mexico City After his marches to Mexico
the official said. to “eradicate” Mexico’s en- dor’s plans to reassess Mexico’s of popular referendums, includ- mayor often sees persecution City to protest fraud in two
Polls show Mr. López Obra- demic corruption, using money opening to private investment ing a vote in the midterm elec- against him, and he doesn’t shy lost gubernatorial elections
dor with an average 15-point away from publicly naming al- made him a national figure, Mr.
lead over Ricardo Anaya, the leged conspirators. In May, he López Obrador returned to the
former president of the center- accused, without providing any capital and won a close may-
right National Action Party, or evidence, a number of Mexico’s oral election in 2000.
PAN. Some analysts say Mr. top businessmen of plotting to In Mexico City, Mr. López
Anaya, 39, still has an outside rig the election. Obrador built a reputation as a
chance if he wins the backing “We are worried that he can-do mayor with a back-
of moderate voters frightened could harbor authoritarian in- breaking schedule. He held a
by Mr. López Obrador. stincts,” said Alejandro daily press conference at 6:15
Running a distant third is Ramírez, the chairman of Mex- a.m.—including weekends—
José Antonio Meade, a ico’s largest chain of movie where he often was able to set
straight-laced former finance theaters and one of the busi- Mexico’s national agenda for
minister who is the candidate nessmen accused by Mr. López the day.
of the ruling Institutional Rev- Obrador. “Many people fear Closer to home, he built the
olutionary Party, or PRI. saying anything because of city’s free elevated highway
The July 1 vote could be Mr. possible reprisals.” and provided pensions for the
López Obrador’s last best shot Mexican historian Enrique city’s elderly, single mothers
to win the presidency after suf- Krauze, who in an essay once and disabled.
fering defeats in 2006 and called Mr. López Obrador a “López Obrador will be the
ZUMA PRESS(2)

2012. His anticorruption mes- “Tropical Messiah,” said in an same pragmatic person we saw
sage, the heart of his cam- interview: “I don’t know if Con- as mayor,” said Olga Sánchez, a
paign, is more popular than gress, the Supreme Court, and former supreme court justice
ever because President Enrique Mexico’s independent institu- who is slated to be the new In-
Peña Nieto’s government has The ruling PRI party’s José Antonio Meade, left, and the PAN’s Ricardo Anaya try to close the gap. tions like the central bank and terior minister if he wins.
 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.
THE WALL STREET JOURNAL.
GREATER NEW YORK
Mayor Lobbies for Action
Urges lawmakers to
renew and expand use
of speed cameras in
city school zones
BY MELANIE GRAYCE WEST
New York City Mayor Bill
de Blasio urged lawmakers in
Albany to act quickly to en-
sure that a current law allow-
ing speed cameras in school
zones won’t expire in July,
while unveiling a new street
design for a busy and danger-
ous Brooklyn road.
Mr. de Blasio spoke
Wednesday at the site of a
deadly collision in March that
killed two children and injured
two mothers—including one
who was pregnant and whose
unborn daughter died later.
The Democratic mayor said
the city will do everything in
its power to protect New York-
ers, but “it’s time that leaders
in Albany did the same thing.”
“There is more to be done
and it must be done quickly,”
said Mr. de Blasio.
At issue is a soon-to-expire
state law that allows for the
city to place speed cameras in
140 school zones, or about 7%
of all school zones. City offi-
cials, along with hundreds of
other groups representing
hospitals, schools and parents,
The New York Philharmonic will be taking its cues from violinist Frank Huang, below center, during a conductor-less program. Conductor Alan Gilbert, inset, departed at the end of the 2016-2017 season.
Philharmonic Plans Concerts Without a Conductor
BY CHARLES PASSY
Over the course of its 176-
year history, the New York Phil-
harmonic has been led by a vir-
tual who’s who of conducting
greats, from Arturo Toscanini
to Leonard Bernstein.
But for its set of subscrip-
tion concerts that begins
Thursday, the orchestra won’t
be tapping a big-name talent
to wield the baton. In fact, it
no
won’t be featuring anyone at
the podium at all.
The program, which fea-
tures works by Mozart and
Tchaikovsky, marks one of the
few times the ensemble has
played an entire program
without a conductor, say Phil-
harmonic officials.
The orchestra wasn’t trying
to save on a conductor’s fee,
but embrace a different meth-
odology, Philharmonic officials
say. The Philharmonic has
been between music directors
this season but has used guest
conductors, and a music direc-
tor typically doesn’t conduct
all series.
Frank Huang, the orches-
tra’s concertmaster, will take
on something of a guiding role
from his seated position play-
ing violin at the front of the
orchestra. Mr. Huang encour-
cellini moonphase
* *
A memorial in Brooklyn where two children died in a car accident.
are pushing for the current
law to be extended to 2022
and expanded by another 150
school zones.
The city also is asking to
place cameras, not just on
streets leading into a school,
but on other streets or major
thoroughfares near schools
where children commonly
cross.
According to a city report,
speeding during school hours
drops more than 63% when
speed cameras are added.
City officials and traffic-
safety advocates say the $50
ticket for speeding in a school
zone and being caught on
camera is designed to deter
repeated bad behavior. Such a
us l,
al a
e
ci on
er rs
m e
m rp
co Fo
aged the Philharmonic to do
the program, based on his ex-
perience with similar conduc-
tor-less concerts when he was
at the Houston Symphony be-
fore coming to New York in
2015.
His belief is that the pro-
cess of working without a
n-
maestro forces the musicians
to pay closer attention to one
another—and the lessons from
that apply even when the or-
chestra works with a conduc-
tor.
“In a way, it’s a
good vitamin for
us,” said Patrick
Gee, a cellist.
Not that there
aren’t challenges
aplenty. While
Mr. Huang
may provide
guidance for
the orchestra
through his
body language,
that is not nec-
essarily as exact-
ing as what a con-
ductor is able to
communicate with a baton.
Moreover, not all the musi-
cians can easily see Mr.
Huang from where they are
seated.
“When we have a conduc-
NY
to 101, according to a city re-
port released in March.
Brooklyn has lost 19 children
in fatal crashes since 2013, the
most of any borough during
that period. In 2014, Mr. de Bla-
sio launched the “Vision Zero”
program, which aims to get the
city down to zero traffic deaths.
As part of that program,
SPENCER PLATT/GETTY IMAGES
the city released its redesign
for a busy one-mile stretch of
the Ninth Street corridor in
the Park Slope section of
Brooklyn. The new design will
move dedicated bike lanes
close to the sidewalk, allowing
for shortened pedestrian
street crossings.
In addition, the city is pro-
ticket is only tied to a license posing modified loading regula-
plate, not a driver, whereas tions to reduce double parking
the same speeding infraction along the stretch. Department
caught by a police officer of Transportation Commis-
would result in more serious sioner Polly Trottenberg said
penalties. the city might also experiment
Meanwhile, traffic fatalities with new intersection designs
this year are particularly high along the route, which would
for children, with six deaths so slow cars and allow for greater
far, compared with nine chil- visibility as they turn.
dren for all of last year. The If the proposals receive lo-
city is on pace to lose nearly as cal community board approval
many children to traffic fatali- the redesign would begin this
ties in 2018 as in the past two summer, according to a
years combined, according to spokesman for the Department
Tom DeVito, senior director of of Transportation.
advocacy at the nonprofit “We are going to be putting
Transportation Alternatives. in the kinds of designs here
Yet, total traffic fatalities that we have seen have made
last year fell 7%, with pedes- streets safer all over the city,”
ontrian deaths dropping from 148 Ms. Trottenberg said.
tor, there’s a very clear refer-
ence point for cues,” Mr.
Huang said.
The challenges are met in
different ways. The Philhar-
monic is working with a
Thursday, May 31, 2018 | A10A
Financial Adviser
Faces Fraud Charges
BY CORINNE RAMEY had included nurses, homemak-
ers, shopkeepers and municipal
A Queens financial adviser workers. “They had low-risk
was indicted on accusations he tolerances, small net worths
defrauded his elderly clients and simply wanted a little bit
out of millions by investing of growth to stretch out their
their money in his risky hedge retirement savings,” she said.
fund without their knowledge, Mr. Mustaphalli faces up to
the New York attorney gen- 20 years in prison, the attor-
eral’s office said Wednesday. ney general’s office said. He is
A 99-count indictment being held on New York City’s
charges Dean Mustaphalli, 47 jail barge in the Bronx because
years old, with securities he hadn’t paid a $2 million
fraud, grand larceny, forgery bail, records show. Mr. Gott-
and other crimes. From 2012 lieb called the bail “outra-
through March 2017, he solic- geous,” saying his client has
ited more than $12 million been involved in similar pend-
from clients and lost more ing civil allegations and had
than $11 million, according to shown no signs of fleeing.
the attorney general’s office. Ms. Underwood said Mr.
Mr. Mustaphalli told inves- Mustaphalli built relationships
tors the losses were a result of with clients while working at a
events such as Brexit and “oil, bank in Queens and took these
bad markets and the election,” clients with him when he
prosecutors said. He told one started his own firm. He then
investor that “if Hillary [Clin- invested their money in his
ton] wins, you’ll get your hedge fund, Mustaphalli Capi-
money back,” prosecutors said. tal Partners Fund L.P., without
Mr. Mustaphalli pleaded not their knowledge, prosecutors
guilty in state Supreme Court in said. In some cases, they said,
Queens on Tuesday, records he forged his clients’ initials
show. Robert Gottlieb, a lawyer on investor documents.
representing Mr. Mustaphalli, Within about a year, that
said his client would address the fund lost 92% of its value, the
.
allegations in the courtroom. attorney general’s office said.
ly
At a news conference The investors have received
Wednesday, state Attorney about 20% of their money back,
General Barbara Underwood Ms. Underwood said. “The funds
said Mr. Mustaphalli’s clients have mostly been depleted.”
Plus, the musicians learn to
take cues from each other,
said Mr. Huang.
AGATON STROM FOR THE WALL STREET JOURNAL (2); ANGELA WEISS/AGENCE FRANCE-PRESSE/GETTY IMAGES
The process, he said, is
“more like playing in a giant
string quartet” than an or-
chestra.
While the Philharmonic’s
conductor-less program might
seem novel to the orchestra’s
regular attendees, it isn’t ex-
actly new in the classical
world.
Until the 19th century, con-
ductors weren’t typically re-
quired to lead orchestras or
other large musical ensembles,
say classical experts. Instead,
a member of the group would
simply help keep time, not un-
like what Mr. Huang is doing.
And more recently, conduc-
tor-less orchestras have be-
come something of a sensa-
tion, with new ones forming
throughout the country. Credit
is often given to Orpheus, the
New York-based conductor-
less ensemble that was estab-
lished in 1972, with jump-
starting the trend.
The Philharmonic will be
smaller number of musicians welcoming its next music di-
for this concert—about 30-40, rector, Jaap van Zweden, at
depending on the work— the start of the 2018-19 sea-
rather than the 75-plus it gen- son. He succeeds Alan Gilbert
erally employs for much of the who departed at the end of
standard symphonic literature. the 2016-2017 season.
rolex and cellini
are ® trademarks.
 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.

A10B | Thursday, May 31, 2018 NY * * THE WALL STREET JOURNAL.

GREATER NEW YORK

METRO MONEY | By Anne Kadet

No Humans Allowed in This Social Network

It was
bound to hap-
pen sooner
than later,
and now it is
here—a social
networking app for pets. Yes,
on Petzbe, a virtual commu-
nity that launched in March,
user profiles feature selfies
and comments
from the pet’s per-
spective. The tag-
line: “No humans
allowed.”
So what are pets
doing on Petzbe?
They are taking naps
and begging for treats.
They are swanning around
in crowns, pinafores and
leather jackets. They are get-
ting their heads stuck in po-
tato chip bags. They are
quoting Francis Bacon.
The more ambitious are
befriending horses and eat-
ing their own beds. They are
surprisingly honest. “I am
not the smartest dog,” de-
clares a pooch named Diesel.
Here is what pets aren’t
doing on Petzbe: Arguing
about Trump. Worrying
about global warming. Com-
plaining about taxes.
Petzbe Founder and Presi-
dent Andrea Nerep recently
hosted a pet party at a bar

INGO FAST
.
in Manhattan’s East Village.

As she greeted guests, the
company’s chief executive of-
ficer, an eerily self-possessed
Brussels Griffon named An-
gus, sat on her lap looking
imperious.
says Ms. Nerep, “There is no
oversharing.”
Julia Barber, who posts
daily on Petzbe on behalf of
Lola, her miniature poodle,
crazy if you post too many
on pictures of your dog, be-
cause that’s what it’s for,”
Ms. Barber says.
Petzbe users skew on the
Lowell Kaufman, co-orga-
nizer of the NYC Pet Tech
Meetup, a networking group
for entrepreneurs, says oth-
ers have launched pet-fo-
ly
develops cancer treatments
for pets.
Mr. Aleksov says he and
his partners have invested
more than $1 million in seed
“It’s a very supportive com-
munity, and Hans will be
supportive as well,” he says.
Plans are for Petzbe to
partner with service provid-

M
s. Nerep, who lives is a typical user of the free young side, 18-44 years old, cused social networks, but capital in Petzbe, and are ers and sell Petzbe-branded
us l,

in Manhattan’s Soho
neighborhood, says
she was inspired to create
the community in 2016 after
app. She takes her dog shop-
ping, to festivals and out to
al a
e
the Hamptons on Long Is-
land. She feeds her bison
and suburban; 87% are fe- Petzbe is the first to take the committed to providing an merchandise. Ads would
male, Ms. Nerep notes. But animals’ perspective. undisclosed additional have to address pets directly,
that’s hard to tell from the He also thinks Petzbe has amount. Ms. Nerep says. “And you
app. “If you post a selfie of good timing, given the re- have to have a business pet

I
adopting Angus about four burgers and fresh berries to yourself, it will be reported cent controversies surround- t’s not just the 85 million representing your company.”
ci on

years ago. She was snapping
up to 20 photos of her dog
every day, and often found
herself narrating his
thoughts. “Talking to other
help her stomach condition.
“She’s like a little person,”
says Ms. Barber, a marketing
executive who lives with her
husband on Manhattan’s Up-
er rs
as human content, and it will
be removed,” she warns.
The community’s most
popular members are a Bir-
man cat named Mia, a Sia-
ing Facebook. “Petzbe is
clean,” says Mr. Kaufman,
who also is the founder and
chief executive officer of
Well Informed Pet, a plat-
U.S. pet owners who
treat their animals like
people, the trend is big in
Europe, Japan and Australia,
he says. An Android version
Petzbe users acknowledge
it might look ridiculous to
lavish so much attention on
a dog or cat. But Megan Wil-
liams, a Queens teacher who

dog owners, I realized I was
not the only one who did
that,” she says.
The pet-obsessed, it
per East Side.
On her Petzbe profile,
Lola complains about the
weather, dreams about ham-
m e
mese named Nala and a form for managing pet infor- of the Petzbe app will be re- created profiles for her two
Yorkie called Stinky, all of mation. “It’s really about the leased this summer, and will Yorkshire Terriers, says the
whom have roughly 2,000 fun aspect of socializing.” soon be available in several cynics don’t know what
“sniffers”—the Petzbe equiv- Petzbe’s backing comes languages including Japa- they’re missing. “They just

seems, need an outlet. But burgers and gushes about alent of followers. They tend from Julian Aleksov, co- nese, Russian and Spanish. don’t get it,” she says. “They
there’s a limit to how much her wonderful “mommy.” to be outgoing pets who founder and executive chair- Meanwhile, Mr. Aleksov is should get a pet.”
you can post about your dog “The good thing about comment a lot on other pet’s man of Oasmia Pharmaceuti- creating a Petzbe profile for
m rp

on Facebook. “With Petzbe,” Petzbe is you don’t seem posts, Ms. Nerep says. cal, a Swedish company that Hans, his 20-year-old turtle. anne.kadet@wsj.com

GREATER NEW YORK WATCH

co Fo

CONNECTICUT earlier this month when it re-
versed its own 2016 decision and
State Will Appeal vacated Mr. Skakel’s conviction on
Skakel Dismissal the ground that his trial lawyer
failed to call an alibi witness to the
Connecticut prosecutors plan to stand.
when a lower court judge over-
turned his conviction in 2013, cit-
ing mistakes by trial lawyer Mi-
chael Sherman, who has defended
his work.
The state Supreme Court rein-
FROM TOP: ASTRID STAWIARZ/GETTY IMAGES; MOSO STUDIOS/9/11 MEMORIAL & MUSEUM

appeal the dismissal of Kennedy
cousin Michael Skakel’s murder
conviction in a 1975 bludgeoning
death to the U.S. Supreme Court.
State prosecutor James Killen
notified the Connecticut Supreme
Court of the planned appeal Tues-
Mr. Skakel is a nephew of Rob-
ert F. Kennedy’s widow, Ethel Ken-
nedy. A jury convicted him in 2002
of killing Martha Moxley in a
wealthy Greenwich enclave when
they were teenagers. He was sen-
tenced to 20 years to life in prison.
n-
stated the conviction in December
2016. Mr. Skakel’s new lawyers
then asked the court to reconsider,
resulting in this month’s reversal.
Mr. Skakel’s lawyer, Hubert
Santos, didn’t immediately return a
message Wednesday.

day. He said the court was wrong Mr. Skakel had served 11 years —Associated Press

NEW JERSEY
Celebrated Places. Legendary Experiences. School Bus Driver in
no

Fatal Crash Released

A judge ordered a school bus
driver facing two counts of vehicu-
lar homicide stemming from a
crash this month released from jail
Wednesday, pending trial over the
objections of prosecutors.
Hudy Muldrow, 77 years old,
had been held in the Morris
County jail since his arrest last
week. Morris County Assistant
Prosecutor Matthew Troiano ar-
gued Mr. Muldrow had incentive to
flee because a conviction could
doom him to die in prison.

Kykuit
A criminal complaint alleges Mr.
Muldrow tried to make an illegal
U-turn on May 17 on Interstate 80
in Mount Olive with a bus load of
fifth-graders. The bus collided with
the Rockefeller Estate a dump truck, killing a student and
a teacher. Mr. Muldrow’s attorney
on Wednesday argued there is no
Discover a world of art and beauty evidence his client was attempting
to make a left turn onto the me-
in the home of one of America’s dian in an area restricted for emer-
gency vehicles.
most prominent families. —Associated Press

LONG ISLAND

TOURS MAY - NOVEMBER Pilot Is Killed When

Sleepy Hollow, NY
Small Plane Crashes
A small vintage airplane that
was part of a GEICO stunt team
crashed in a wooded residential
area on Long Island, killing its pilot,
Suffolk County police said on
Wednesday.
 Take Metro-North and receive a $5 discount! A spokeswoman for GEICO
Skytypers Air Show Team con-
BUY TICKETS ONLINE AND SAVE firmed that Ken Johansen was
 hudsonvalley.org or call 914.366.6900
killed in the crash of the World
War II-era plane in Melville.
—Associated Press
Space Honors 9/11 Rescue and Recovery Workers
A pathway flanked by six
stones meant to symbolize
strength and determination will be
added to the Sept. 11 memorial
site in lower Manhattan to honor
the rescue and recovery workers
who toiled for months at ground
zero, officials said Wednesday in
unveiling the design concept.
The new dedicated area will
serve as a way to honor those
who became sick or died from ex-
posure to the toxins in the environ-
ment after the Twin Towers fell.
The announcement came on
the day of the National Sept. 11
Memorial & Museum’s annual
commemoration of the rescue and
recovery effort, which officially
ended on May 30, 2002.
Jon Stewart, the former host
of “The Daily Show” and a board
member of the museum, joined
other officials at the event. Mr.
Stewart is an outspoken advocate
for the Zadroga Act, which pro-
vides health benefits to first re-
sponders who fell ill after the at-
tacks.
—Associated Press
 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.

THE WALL STREET JOURNAL. Thursday, May 31, 2018 | A11

LIFE&ARTS
FASHION

Streetwear, ‘Drops’ and Tattoos

To catch on with millennials, department stores take cues from specialty retailers, mixing up labels and hosting pop-up shops

York and Nordstrom are

BY RAY A. SMITH
WHAT KIND OF CLOTHING
sale has DJs and perfor-
mance artists as the stars?
Or pairs designer fashions
with hoodies and sneakers?
Or offers piercings along
with $4,850 Givenchy or-
ange leather pants? Call it
the millennial mashup.
Old-line department
stores and fashion brands
are rejiggering sales floors
and websites to court mil-
lennials in their twenties
and thirties and the even
younger members of Genera-
tion Z. To woo this elusive
demographic, department
stores like Barneys New
concocting entertainment- HIGH-LOW FASHION MIX
filled Instagrammable shop-
ping experiences with exclu-
sive “drops” of limited-
quantity products. They are
hosting brief pop-up sales,
merchandising high-end
brands alongside casual ones
and loading up on items that
can be personalized and cus-
tomized. Among their exem-
plars are Dover Street Mar-
ket, Ssense, Maxfield and
other specialty stores that
have figured out what makes
millennials tick—and shop.
Here’s how veteran retail-
ers are taking a page from
their cooler counterparts to
captivate the next genera-
tion of shoppers:

IN-STORE EVENTS

.
ly
on
Comme des Garçons clothes at Dover Street Market, a pioneer of displaying streetwear brands alongside high-fashion labels.

M
illennials defy uniforms but one fixture of their ward- dress and made high-end designer fashion seem less intimidat-
us l,

robes is streetwear—hoodies, tees, sneakers and base- ing to them.

ball caps often emblazoned with bold graphics, colors Nordstrom took note. The Nordstrom Men’s store that
al a
e
or logos. “Basically, streetwear is fashion today,” said Robert opened in New York in April carries more streetwear and edgier
Burke, of luxury-goods consultancy Robert Burke Associates. fashion brands, said Paige Thomas, Nordstrom’s executive vice
Prices range widely, such as $155 for Nike Air Force high-top president and general merchandise manager for men’s apparel.
ci on

sneakers and $575 for a logo hoodie by the label Off-White.
But streetwear alone won’t draw younger consumers. Stores
have to mix up the selection, offering high-fashion options, too.
Traditional retailers’ practice of compartmentalizing brands and
categories “is not appealing today,” to millennials and Genera-
er rs
To draw younger shoppers, she said, the store mixes brands at
different prices and styles more than usual, “from Vans to Val-
entino and Nike to Balenciaga.”
To sustain its mix-it-up appeal, Dover Street Market de-
parted from another retail tradition. “When we open a new

Barneys New York hosted a sales event last fall that
featured entertainment and limited-edition merchandise.
m e
tion Z, Mr. Burke said. store,” said general manager James Gilchrist, “we do our very
Dover Street Market, the avant-garde store created by the best not to tell the brands who they’re next to so that they de-
heads of label Comme des Garçons, was a pioneer in displaying sign the space they’re in without the knowledge of what’s going
streetwear labels alongside designer offerings. In its New York next to them.” Dover Street Market, which has stores in Tokyo,

S
pecialty retailers are attracting young people by shop, which opened in 2013, streetwear brand Supreme was London, Singapore and Beijing, plans to open a Los Angeles out-
mounting temporary “pop-up” spaces and in-store next to Prada. The approach reflects how younger consumers post this year.
events involving creative types such as artists, indie
m rp

musicians and tattoo designers.

In recent years, Maxfield has run pop-ups that are both
an art installation and a boutique for edgy or streetwear-in-
spired brands, including Off-White, READYMADE, Maison
Margiela and Vetements. The pop-ups at the Los Angeles
UNCONVENTIONAL WEBSITES
co Fo

store often feature limited-edition exclusive products—in re-

tail parlance, a “drop.” The events are popular with millenni-

als, said Sarah Stewart, the buying director for Maxfield.
“Millennials are the ‘experience generation,’ ” said Melanie
Shreffler, senior director, insights, at research firm Cassandra.
“They judge a good experience on its share-ability. For exam-
ple, will they get some great photos for their Instagram?”
Last fall, Barneys New York joined with fashion blog High-
snobiety to host a weekend-long event aimed at millennials
and Generation Z shoppers. Called “thedrop@barneys,” it fea-
tured exclusive, limited-edition merchandise and appearances by
S
sense, a 15-year-old online retailer, scarcely promotes ist in Toronto said Ssense is “the first place I check for any-
clothes on its site the way most mainstream retailers do. thing.” He occasionally shops at Barneys but finds other de-
Instead, Ssense (pronounced essence) offers profiles of partment stores like Nordstrom and Saks staid. “Ssense has a
top musicians, artists, and recently, a chef. The site’s editor-in- really great mix of high-end, contemporary and emerging de-
chief founded the Berlin-based culture magazine 032c. signers,” Mr. Godin said.
“Millennials don’t see distinctions between
fashion, music, content and commerce,” said
Krishna Nikhil, Ssense’s chief merchandising offi-
cer. The Montreal-based retailer, which opened its
CLOCKWISE FROM TOP: ADRIAN WILSON; SSENSE; BARNEYS NEW YORK

designers of streetwear and other brands such as Fear of God first bricks-and-mortar outpost there early in
and Palm Angels. Shoppers could get custom sneakers, tattoos May, sells streetwear-leaning brands like A-COLD-
and piercings. There were exclusive launches by Gucci and Al- WALL* alongside luxury labels like Givenchy.
n-

exander Wang, as well as by fashion-insider labels Ambush and
Unravel Project. In its first day, the “drop” led to a 25% sales in-
crease, with 20% of the customers new to Barneys. This week-
end, the retailer will host a “drop” at its Beverly Hills store. Jeff
no
When a customer clicks on an item, it usually ap-
pears with merchandise from other brands, a de-
parture from the retail playbook of showing a
head-to-toe ensemble from one label. “That’s

Carvalho, managing director of Highsnobiety, said that to at-
tract younger shoppers, traditional department stores “are all
pulling cues from those ‘indicator’ retailers”—meaning smaller,
hip counterparts. Daniella Vitale, Barneys’ chief executive and
president, said the concept came from a “company-wide effort
for innovation” and acknowledged other influences. Dover
Street Market periodically hosts a sprawling Open House that
includes book signings, art installations, live music and sales of
exclusive merchandise.
something young consumers in particular have
connected with very strongly,” Mr. Nikhil said.
About 80% of Ssense’s customers are between
18 and 34 years old, he said.
Bloomingdale’s has refreshed its web site to
emphasize storytelling, adding curated content
on trends and buzzy designer labels rather than
merely filling the home page with merchandise.
Matthew Godin, a 22-year-old personal styl- The Montreal outpost of Ssense, a retailer with a carefully curated website.

ARCHITECTURE

THE QUEST TO RECOVER A LOST WRIGHT

BY VIPAL MONGA
A BASEBALL DIAMOND in the Canadian
town of Banff may be hiding the answer to
an architectural mystery.
If a team of professors is right, buried be-
neath the baseball field on the edge of Can-
ada’s Rocky Mountains is the foundation of
the Banff National Park Pavilion, one of only
two buildings in the country designed by
Frank Lloyd Wright.
YEW-THONG LEONG, RYERSON UNIVERSITY
filmmaker who has made four feature-length
documentaries about Wright, to restore the
structure and in the process recover one of
Canada’s lost architectural gems.
Mr. Leong and the scholars have been
asked to create new construction plans for
the building and help the town estimate the
cost and time required for the rebuild. Mr.
Miner hopes to break ground next spring.
Wright designed the Banff Pavilion, in-
tended to be a picnic house and rest station
for tourists, in 1911. It came at the tail end of

The structure was demolished just before
World War II, and nobody today seems to
know exactly where it stood. Finding its
foundation could be one of the keys to an ef-
fort by architects from Toronto’s Ryerson
University, who are trying to rebuild the pa-
vilion as faithfully to the original as possible.
The trouble is, they aren’t sure exactly
how Wright designed it in the first place.
“We’re following all the breadcrumbs,”
said Yew-Thong Leong, associate professor
A rendering of the Banff National Park Pavilion, located in Canada’s Alberta province, one of only of architecture at Ryerson. He is leading
two buildings in the country designed by Frank Lloyd Wright. seven professors hired by Michael Miner, a
what is known as his “prairie style” era, dur-
ing which he built long, low-rise buildings
that reflected the expanse of his native Mid-
western landscape.
The man who designed the Solomon R.
Guggenheim Museum in New York and Fall-
ingwater in Pennsylvania worked with archi-
tect Francis Conroy Sullivan to build the
200-foot-long wood and stone building as
part of a commission from the Canadian
government.
Affording views of the mountain ranges
Please see WRIGHT page A13
 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.
A12 | Thursday, May 31, 2018
I WAS ON ASSIGNMENT at the
Boeing plant at the Charleston,
S.C., airport, when my phone be-
gan to vibrate: It was Dow Jones
security calling to tell me there
was an active shooter in down-
town Charleston and I should take
cover if nearby.
Perhaps you’ve gotten a similar
call during your travels. More
companies are tracking employees
on the road far more closely.
They’re providing services like
alerts about everything from traf-
fic jams to terrorist attacks, medi-
cal consultations and emergency
evacuation.
It’s called duty of care, and it’s
a trend sweeping through corpo-
rate travel and security circles.
The expansion of travel monitoring
and emergency communications
and services is being driven by
fear of terrorist attacks. Another
factor: new laws in several coun-
tries, including the U.K., holding
corporations criminally responsi-
ble for the safety and security of
employees.
Duty of care raises all kinds of
new questions for travelers and
their employers. Who gets cov-
ered? When does close tracking of
your travels become an invasion of
privacy? Companies increasingly
are being held liable for their em-
ployees’ safety. And business trips
often blur traditional lines of re-
sponsibility with a leisure ele-
ment—adding a day or two for ski-
ing or sightseeing. Vacations can
become a company concern if you
get stranded or injured. And peo-
ple increasingly want some kind of
security coverage when overseas,
whether for business or pleasure
or both.
Knowing where employees are
turns out to be critical to manag-
ing a company’s risk. For years
companies have compiled and
tracked travel itineraries, if em-
ployees booked through company
channels. They provided an assis-
tance hotline and maybe emailed
briefings on destinations. Now
more companies are setting up
elaborate command centers to con-
tact employees in trouble spots,
and even tracking employee
whereabouts on the ground,
whether employees want that level
of security or not.
A survey of U.S. companies by
the Association of Corporate
Travel Executives in 2016 found
54% said they had a strict travel-
safety policy. Last year that num-
ber jumped to 74%.
“In the past, you just had to give
security briefings to those travelers
going to remote areas,” says Gree-
ley Koch, ACTE’s executive director.
Now companies perceive danger in
historically safe places.
More medium-size and small
companies are developing duty-of-
care plans, says Arnaud Vaissie,
co-founder and chief executive of
International SOS, a travel security
and medical assistance provider
that contracts with companies
world-wide. The number of inter-
ventions International SOS man-
aged on the security side was up
30% last year compared with
2016—a reflection both of in-
creased incidents and more clients.
It’s something for leisure trav-
elers to think about as well. Hur-
ricanes are just one example of
where having a home operations
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THE MIDDLE SEAT | By Scott McCartney
New Steps to Secure
Your Business Trip
Companies are placing more emphasis on tracking employees on the road
as a safety measure, in a practice called duty of care
on
us l,
al a
e
ci on
er rs
m e
m rp
center—someone to check in with, Even a basic security briefing
co Fo
alert you to nearby incidents or about local areas can help leisure
help arrange emergency travel— travelers—State Department travel
can pay off. Some security firms, advisories and the department’s
like International SOS and Global Smart Traveler Enrollment Pro-
Rescue, now offer individual and gram, which offers free informa-
family memberships. And many tion and alerts from embassies,
employers now extend travel se- are good resources.
curity benefits to vacationing em- Surveys show travelers’ biggest
ployees. fear often is terrorism—45% of
Typically innovation comes in business travelers in a recent Global
personal travel and migrates into Business Travel Association survey
business travel: online booking, called terrorism their greatest
home- and ride-sharing. This may safety risk. Street crime was the
go the other way. biggest fear of only 15%, illness only
n-
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THE WALL STREET JOURNAL.
responsibility. Work and personal
time blends,’’ says Mike McCormick,
GBTA executive director.
Experts say duty of care is en-
tering a new phase where privacy
may become an issue for road war-
riors and expats working overseas.
How closely do you want your
company tracking your where-
abouts through GPS on your com-
pany cellphone, company credit-
card swipes, ground transportation
receipts and even hotel card or
digital keys?
Most companies may have ac-
cess to a lot of that information,
but perhaps not in real-time and
not in a coordinated tracking sys-
tem. “There’s all these disparate
systems that know something
about me. Can they be pieced to-
gether? That’s the future I’m hear-
ing,’’ ACTE’s Mr. Koch says.
International SOS surveyed 100
advanced duty-of-care programs
and 36 companies said they knew
where employees were on the
ground at all times and could im-
mediately locate them. Among In-
ternational SOS’s 10 best practices:
track traveling employees at all
times.
Another question ahead: Will
enhanced privacy regulations, such
as the European Union’s General
Data Protection Regulation pro-
tecting personal information, ulti-
mately conflict with requirements
to monitor and protect employees?
For now, most companies take a
Privacy laws in Europe
could conflict with
companies’ increased
.
safety measures.
ly
broad approach. If there’s an at-
tack in Paris, every employee in
Paris, or even all of France, gets a
call or text asking if they are safe,
instead of trying to identify people
closest to the event.
Walgreens is judicious in how
often it reaches out, says Barrie
Burren Stetzinger, the company’s
manager of asset protection solu-
tions. Some services send adviso-
ries that storm season is ap-
proaching. Walgreens waits until a
storm actually approaches. With
protests, the company tries to as-
sess the disruption and potential
for violence before sending an
alert.
“We don’t want to be the people
who cried wolf and inundated them
BRIAN STAUFFER
with information that isn’t perti-
nent, because then they may not
read it,’’ Ms. Burren Stetzinger says.
When events do happen, the
company tries to provide informa-
tion or quick fixes: advice on
13%. Yet street crime and illness are whether to take an ambulance in a
far more likely than terrorism. certain country or get to a spe-
The “bleisure” trend—mixing cific, higher-quality medical facil-
business and leisure by adding a ity, for example. “Even the people
few days of fun to a business who think they are the best-sea-
trip—raises a duty-of-care ques- soned travelers, when something
tion for companies. Are they re- serious happens, they usually are
sponsible for the weekend in To- very grateful to hear from you,’’
kyo after the business trip ends? A she says.
GBTA survey last year found only Some inexperienced travelers
33% of companies had a travel like to schedule daily well-being
risk-management policy that ad- checks. Others don’t want any con-
dressed personal trip extension. tact unless something big happens.
“Companies are going to increas- Walgreens has chosen not to take
ingly take on more and more of that advanced measures for tracking.
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 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.
THE WALL STREET JOURNAL.
A Visual Equivalent
Of Jazz
BY KAREN WILKIN
New York
IN THE MID-1980S, William S.
Arnett, a writer, curator, entrepre-
neur, Georgia native, and collector
of African art, turned his attention
closer to home—the efforts of self-
taught African-American artists of
the rural South. Mr. Arnett became
a passionate collector and advo-
cate of this work, characterizing it
as the visual counterpart of jazz, a
uniquely American, improvisa-
tional art form forged from African
roots and the troubled history of
American black experience: slavery,
the Civil War, emancipation, recon-
struction, Jim Crow segregation,
lynchings, the civil-rights move-
ment. In 2010, Mr. Arnett created
WRIGHT
no
Continued from page A11
west of Banff, in the province of
Alberta, the pavilion was located
on a plain next to the Bow River,
which runs through the town.
Wright didn’t account for the
river’s periodic flooding, and the
waters often submerged the build-
ing. It succumbed to the elements
and was demolished in 1938.
“It’s a historical tragedy,” said
Mr. Miner, who heads the Frank
Lloyd Wright Revival
Initiative, a non-
profit dedicated to
restoring Wright
buildings.
Evie Eshpeter, a
Calgary-based con-
sultant who is work-
ing with Mr. Miner,
said the team got
the town of Banff in-
terested by pointing
out the increased
tourism the area
could see by restor-
ing the building.
Randall McKay, di-
rector of planning for the town,
was initially among the skeptics.
“The fact is, it’s been long
erased from the collective memory
of the community,” he said. But af-
ter learning more about the build-
ing and its architectural signifi-
cance, he added, “I’ve certainly
come around to the value of this
and the potential it would have.”
This is the Wright initiative’s
first project, because according to
Mr. Miner, the pavilion is a rela-
tively simple structure, and com-
pleting it could build momentum
for more ambitious efforts. But
once the Ryerson team got the pa-
vilion’s original drawings, made on
on
ART REVIEW
us l,
al a
e
ci on
er rs
the Souls Grown Deep Founda-
tion—the name comes from a
Langston Hughes poem—which,
m e
among other things, has supported
artists in the collection, organized
exhibitions, and published hand-
m rp
some volumes. Recently, the foun-
dation has made donations to mu-
seums across the U.S., including, in
2014, 57 works to the Metropolitan
Museum of Art.
co Fo
“History Refused to Die,” a
sharply focused, elegantly installed
selection of 29 stellar works, cele-
brates this important gift. Orga-
nized by Randall R. Griffey, curator
in the Department of Modern and
Contemporary Art, and textile ex-
pert Amelia Peck, curator of Amer-
ican Decorative Arts, the show was
originated by the former Met cura-
tor Marla Prather. The title comes
CLOCKWISE FROM TOP: THE FRANK LLOYD WRIGHT FOUNDATION ARCHIVES/MOMA/AVERY ARCHITECTURAL & FINE ARTS LIBRARY, COLUMBIA UNIVERSITY, NY; WHYTE MUSEUM OF THE CANADIAN ROCKIES; ASSOCIATED PRESS
n-
Frank Lloyd Wright,
left, worked on the
Banff building as
part of a
government
commission. One of
his drawings of the
pavilion, above, and
an archival photo of
its interior, right,
including light
fixtures and other
elements that didn’t
appear in his
original sketches.
linens stored in Canada’s national
archives in Ottawa, the scholars
found it may not be as easy as
they thought.
Lines that appear straight on
the linens were crooked when
scanned into a computer. Though
the building was asymmetrical,
only one side of the plans had di-
mensions noted. The schematics
lacked specifics about such critical
details as the dimensions of the
windows, a kitchen area and sup-
porting pillars.
Some directions were left up to
workmen to interpret. Instructions
for the roof, for example, simply
read “lathe and plaster.”
LIFE & ARTS
CLOCKWISE FROM LEFT: © ESTATE OF THORNTON DIAL/ARS, NY; © ESTATE OF NELLIE MAE ROWE/ARS, NY; © ESTATE OF ANNIE MAE YOUNG/ARS, NY
Clockwise from above: Nellie Mae Rowe’s ‘Nellie’s Birthday’ (1981); Annie Mae
Young’s ‘Work-Clothes Quilt With Center Medallion of Strips’ (1976); Thornton
Dial’s ‘History Refused to Die’ (2004)
els are transformed by placement
and the artist’s will into confronta-
tional, accusatory figures. Three
works by the musician, artist and
theorist Lonnie Holley (born 1950),
made between 1982 and 2003, dem-
onstrate his range, from a tall, lin-
ear assembly of found materials to
a blocky seated couple carved in
discarded casting material from a
foundry. And there’s a gritty, geo-
metric assemblage by Ronald Lock-
ett (1965-1998), who was inspired
and mentored by Dial, his cousin.
While most
of the works
first read as
abstractions,
they are, in
fact, commem-
orative, sym-
.
bolic, or trig-
ly
gered by
specific events,
and often ani-
mated by coded
references. Wit-
ness Dial’s
haunting “The
End of Novem-
ber: The Birds
That Didn’t
Learn How to
Fly” (2007), a
flickering ex-
panse of dull
ocher and gray
on a puckered fabric ground with a
row of dead black birds suspended
against it. The “birds” prove to be
clusters of tattered fabric and work
from Thornton Dial’s spectacular, gloves. Dial, typically, presents us
tall, freestanding 2004 assem- with a complex, purely visual met-
blage, a layered, ambiguous accu- aphor with his cryptic imagery and
mulation, at once seductive and scavenged materials, here one that
disquieting, of unlikely found ma- provokes associations with the
terials (okra stalks and roots, tin, brutality of poverty and hard labor,
wire, Masonite, steel chain, cloth- as well as the horror of lynching.
ing, collaged drawings, enamel, Despite their playful energy, the
and spray paint) modulated by crisp, brilliantly colored paintings
rich, unexpected, broken color that of Nellie Mae Rowe (1900-1982),
creates counter-rhythms to the ir- with their stylized figures, ambigu-
regular surface. ous creatures, and mutable scale,
Dial (1928-2016), a powerful and have been triggered by sometimes
deservedly celebrated artist whose uncomfortable allusions, from hor-
work resists categorization and rific child murders to her own im-
needs no qualifying labels, is the pending death. Other obsessions
star of the show, represented by six are embodied by a visionary 1972
major collage-paintings and three image by Purvis Young
large drawings, spanning 1998 to (1943-2010), a vernacular icon,
2013. He has competition from a with rows of figures and angels
fierce 1995 sculpture by Joe Minter against a lush red ground, and two
(born 1943), in which rusted shov- enormous white horses, symbols,
Lacking basic information, the tion from the same era.
crew has had to deduce Wright’s Though the tennis club is longer
intentions. They’ve tried to apply than the pavilion, the Ryerson
mathematical principles he was group has tried to apply dimen-
known to favor, such as the Golden sional theory, based on the propor-
Ratio, which designers use to mir- tions of tennis courts, to the Banff
ror nature and create pleasing pro- project. Team members, aware of
portions, and harmonic series, Wright’s interest in Japanese aes-
where proportions are based on thetics, also tested proportions
musical frequencies. based on the dimensions of a tra-
To ensure that the workmanship ditional tatami mat to fill in the
is accurate, the Ryerson research- gaps in the Banff drawing.
ers turned to 1900s building man- The team has been struggling
uals to relearn some of that era’s with mistakes that Wright made,
building techniques. such as the pavilion’s flood-prone
Another key: The Banff pavilion design. “He may never have been
is similar to Wright’s River Forest to Banff,” said Mr. Leong. “Things
Tennis Club, an Illinois construc- got missed.”
Thursday, May 31, 2018 | A13
for Young, of power and freedom.
Ten stunning quilts made be-
tween 1935 and 1976 by women
from Gee’s Bend (now Boykin), Ala.,
may be the best known inclusions,
thanks to an earlier traveling exhibi-
tion seen at the Whitney and other
museums across the U.S. They range
from intensely colored demonstra-
tions of wonky geometry to subtly
orchestrated, severe arrangements
of blocks and bars of faded denim—
worn-out work clothes, repurposed,
out of necessity, as bedcovers and
sometimes as in-
timate memori-
als to the people
who wore them.
Like Dial’s rever-
berant works,
the quilts are
first-rate works
of art, testimony
to their makers’
creativity and
inventiveness,
but they are also
poignant re-
minders of the
demands of pov-
erty and domes-
ticity. Far from
being modernist
abstract paint-
ings manqués,
they are utilitar-
ian objects de-
signed by gifted women with exact-
ing eyes. An excellent catalog essay
by Ms. Peck rehearses the vexed his-
tory of the quilts, their reception
and reputation.
At one entrance, “History Re-
fused to Die” is announced by a ra-
diant, engagingly asymmetrical
quilt made around 1960 by Loretta
Pettway (born 1942). Beside the
opposite entrance, there’s a ter-
rific, angry Dial, installed near
paintings by Clyfford Still, Jackson
Pollock and Robert Motherwell,
among others. Dial looks right at
home, as good as any of his fellow
artists and better than most.
History Refused to Die: Highlights
From the Souls Grown Deep
Foundation Gift
The Met Fifth Avenue, through
Sept. 23
Ms. Wilkin is an independent
curator and critic.
The architects ran a 100-year
analysis of the flooding from the
Bow River and discovered that at
times the building could be sub-
merged in as much as 3½ feet of
water. To deal with the problem,
they have considered building au-
tomated stilts that would lift the
building when the Bow overflows,
surrounding it with an inflatable
pontoon to keep it afloat, or dam-
ming the river to redirect the flow
of water.
The project is giving them in-
sight into the thinking of one of
the last century’s most celebrated
architects. “The project takes on
this sacredness, because he’s such
an iconic master,” said Kendra
Schank Smith, a professor of archi-
tectural science at Ryerson.
Some question the premise.
“You can’t let it masquerade as
a Wright,” said Jennifer Gray, cu-
rator of drawings and archives of
the Avery Architectural and Fine
Arts Library at Columbia Univer-
sity. She said the modifications
that will be unavoidable to bring
the building up to code and ac-
count for new building techniques
make its authenticity doubtful.
Mr. Leong counters that other
noteworthy restorations have been
completed without undermining
their pedigree. The Barcelona Pa-
vilion by German architect Ludwig
Mies van der Rohe, for example,
was torn down in 1930 but recon-
structed in the 1980s using new
marble. It is still considered part
of that architect’s work.
In the coming weeks, Mr. Le-
ong’s team will be renting scan-
ners from the nearby city of Cal-
gary to search for clues to the
pavilion foundation’s location as
they try to pin down exactly how
it was oriented.
“It’s like ‘Raiders of the Lost
Ark,’ ” Mr. Leong said.
 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.

A14 | Thursday, May 31, 2018 THE WALL STREET JOURNAL.

SPORTS
FRENCH OPEN

ZVEREV FINDS
GAME IN TIME

ILLUSTRATION BY TIM JONES/THE WALL STREET JOURNAL (PHOTOS: ISTOCK; EZRA SHAW/GETTY IMAGES
BY TOM PERROTTA

PARIS—Alexander Zverev is a
little-known star in men’s tennis,
despite being the No. 2 seed here
at Roland Garros. Why? The 21-
year-old from Germany has strug-
gled in all the major tournaments,
having never advanced past the
fourth round in 11 tries.
Zverev escaped another early
defeat at the French Open on
Wednesday, when he recovered
from being down two sets to one
against Serbia’s Dušan Lajović, who
is ranked No. 60 in the world.
Zverev was so frustrated at one
point in the match that he smashed
his racket. But once his game re-
turned, he dominated. The final
score was 2-6, 7-5, 4-6, 6-1, 6-2.
“I didn’t play my best the first
three sets,” Zverev said. “Once I
found my range and rhythm, I felt
good out there.”
Zverev nearly beat Rafael Nadal
in the Rome final this month (he
led 3-1 in the third set) and looked NBA FINALS
fabulous in his first-round match

The Warriors’ Chess Grandmaster

earlier in the week.
Today, though, Lajović played
exceptional offense and essentially
hit Zverev off the court in the first
half of the match.
“Obviously Dušan, at the mo-
ment and during the clay court
Klay Thompson plays He added: “You can learn a lot
about someone playing chess.”
fends the other team’s best guard.
The Warriors are perfect for
years. “I just love how there can
be so many swings,” Thompson

.
season, he’s playing unbelievable,” chess about as often as His childhood friend Seth Tarver, Thompson, and he is perfect for said, “and it can take one move to

ly
Zverev said. “I knew it was not go- who now works for Thompson’s the Warriors. mess up the whole flow.”
ing to be an easy match.” he plays basketball foundation, knows his chess habits The roots of his fascination with Thompson is still with his
It wasn’t, and winning should better than anyone and offered this chess were also unexpected. It friends, hanging out and playing
help Zverev’s confidence going for- on scouting report about Thompson’s started in seventh-grade in Port- chess. They abide by the rules of
BY BEN COHEN
ward. He has won two clay court game: “One thing about Klay is that land, Oregon. Riverdale Grade pickup basketball. There is no
tournaments this year, including he’s at his best when you back him School’s chess teacher, Carl clock, and the winner of one
the Masters 1000 in Madrid. Zverev Oakland, Calif. into a corner. He’ll be playing Haessler, a local securities broker match getting the advantage of
said the best method is to not AFTER A RECENT Golden State loose, but once I show I’m a threat, who is also a United States Chess playing white in the next match is
us l,

worry about winning majors, as Warriors game, Klay Thompson he can really lock in.” Federation Life Master and five- their equivalent of make it, take it.
Roger Federer recently told him. opened the Chess with Friends app Which means Thompson plays time Oregon state champion, taught Tarver used to lose so often
al a
e
“He said some encouraging on his phone. He wanted to show a basketball the way he plays chess. his students to be cerebral. “I’m big that he spent time studying why
things,” Zverev said. “I still have a match he was playing against The Warriors were down 3-2 in on the Socratic method,” he said. he was losing. “He knows some
little bit of time. Hearing that teammate Andre Iguodala to some- Game 6 of the 2016 conference fi- He wanted them to know how to good tactics,” Tarver said. “I had
ci on

from the greatest player of all one he’d never met waiting for him nals when he scored 41 points to think rather than what to think. to learn on the fly. I learned
time is, you know, comforting, be- outside the locker room. Thompson rescue their season. It was a once- “How to look down at this thing of through him beating me.”
cause you always think, ‘Oh, if I’m thought Magnus Carlsen might be in-a-lifetime game. Until it happened all these pieces going every which At one Warriors dinner this sea-
not going to win this one, I’m able to offer some assistance. again. The Warriors were down 3-2 way,” he said, “and cut out the son, enough players and coaches
never going to win one.’” Magnus Carlsen is the best in Game 6 of the conference final white noise, look at what’s relevant, were discussing chess that Golden
er rs

chess player in the world, accord- last week when Thompson scored assess the position, come to a con- State decided to invite Carlsen to
ing to the official rankings of the 35 points and sparked another epic clusion, make a plan based upon meet with the team. As it turned
sport’s governing body. Klay comeback. Golden State wouldn’t be that conclusion and then make spe- out, the reigning world champion
Thompson introduced himself to in the Finals against the Cleveland cific moves that fit the plan.” is a maniacal NBA fan. He flew to
m e

Carlsen as the best chess player on Cavaliers for the fourth consecutive This is not what Thompson was Houston for the conference finals,
the Warriors, according to the offi- season without him. expecting from chess class. and the Warriors arranged for
cial rankings of Klay Thompson. Thompson is their rook. He’s “I took it as an elective just to Carlsen to have tickets.
m rp

“Based on loose facts,” he said, the quietly crucial piece of this po- waste time,” he said. Thompson was impressed by
“but whatever.” tential Warriors dynasty. The other thing he was not ex- Carlsen. “That guy’s smart,” he
Thompson plays chess as often as He doesn’t seem to mind that pecting was that he would become said. “Understatement that he’s
he plays basketball: almost every he’s an understated All-Star who obsessed with chess. smart. He’s a genius.” And he took
day. “It’s a great game,” he said. He will never get the glory of Stephen “And then I realized, wow, this advantage of the opportunity to
co Fo

owns multiple chess boards at Curry or Kevin Durant. He prefers it is actually really fun,” Thompson request advice on his openings.
home. He carries a magnetic chess that way. Golden State coach Steve said. “Just for an hour, to be with “He said he’d sit down and teach
set on road trips. And he juggles Kerr calls Thompson “the most your friends, hang out and play me some things one day,” Thomp-
CLIVE BRUNSKILL/GETTY IMAGES

several chess games on his phone, low-maintenance guy on earth.” chess. It was probably the best son said.
which is a problem for Thompson: Everyone on the Warriors un- class I’ve ever had.” Thompson, who once compared
He’s not good at chess on his phone. derstands his value to their bid for What he appreciates most about Ping-Pong games with Roger
“In person, I’m real nice,” he a third championship in four years. chess are the moments when he Federer, thought better of chal-
said. “On the phone, I’ll make a His talents fit this team. They can feel the advantage tipping. lenging maybe the greatest chess
couple moves, put my phone down don’t need another ballhandler, That sense is familiar to anyone player of all time.
for a couple of days, forget my and he scores the most points in who has watched the Warriors use “He’d play blindfolded and back-
strategy and think: Why the hell the league off screens. They do a sliver of an opening to destroy ward,” Thompson said, “and still
Men’s No. 2 seed Alexander Zverev did I do that?” need a ball-stopper, and he de- other teams over the last four beat me.”
n-

Weather The WSJ Daily Crossword | Edited by Mike Shenk

Shown are today’s noon positions of weather systems and precipitation. Temperature bands are highs for the day.
d t
Edmonton <0 1 2 3 4 5 6 7 8 9 10 11 12 13 69 Piloting 33 Back, at the
40s milestones track
no

V
Vancouver C g y
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Calgary
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10s
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50s 50s
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20s
Por d
Portland 70s 20 21 22
matryoshka them in a 1964
Helena ALBERTO 30s
60s dolls B movie
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50s T t
Toronto 50s
Boise
pls //St. Pau
Mpls./St. P
Paul Ab
Albany t
Boston
28 29 30 31 32 33 34 1 Modernize, Santa Fe
60s 60s
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Pierre Sioux k
Milwaukee Detroit Buffalo 70s rtford
60sHartford perhaps 41 The Police, e.g.
ew Y
New Yorkk 70s 35 36 37
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Lake
ke City
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Des C d
Cleveland 2 Major suit 44 Eyjafjallajökull
Reno Cheyenne Chh
Chicago Phil
h d lphi
Philadelphia
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Pittsburgh 80s 38 39 40 41 42 3 Rays, e.g. output
Sacramento di p
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Denver h ngton
gton D.C.
Washington DC 90s
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n Francisco
San i 70s p i fi ld
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Charleston 43 44 45 46
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phi
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kl oma City
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Jackson
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BUSINESS INSIDERS | By Paolo Pasco 13 Not just want
for short
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U.S. Forecasts City
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Tomorrow
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Today Tomorrow
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Atlanta 87 72 t 89 72 t Portland, Maine 72 60 pc 74 60 sh Jakarta 93 77 pc 91 76 pc Beyoncé in 25 Payment before Timberlake song
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Baltimore 82 70 t 89 70 t Sacramento 72 50 pc 86 57 s Johannesburg 63 45 sh 69 41 s 15 Language with protuberance boxing ring bell
37 Foundling found 27 “Numero Zero”
Boise 72 48 sh 72 50 s St. Louis 89 70 t 92 68 s London 74 59 t 71 56 t many borrowings 53 Body of an 64 Old coin worth a
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from Sanskrit organism thousandth of a
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Charlotte 85 71 t 91 71 t Santa Fe 87 51 s 89 51 s Melbourne 57 41 pc 58 40 s 16 Detached 54 It might cause yen
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horrible cutting 30 Slangy send-off that’s inside the
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73 58 t 71 54 t
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A R
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Kansas City 89 65 pc 93 72 s Amsterdam 79 61 t 73 58 r San Juan 88 76 sh 87 75 pc D E
S I G N E R D R E S S E S
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I T O P T T A S T E S
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N T E U P R I S K
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Miami 84 74 pc 86 71 pc Beijing 95 64 s 98 69 s Sydney 65 53 pc 62 56 sh stars on each sky I S E E P R U D E M O O D
Milwaukee 87 60 t 64 56 pc Berlin 87 66 t 88 66 t Taipei City 97 77 c 79 74 c 26 Preparer of apps side 68 “The Sound E N D B O O T G A U G E
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Nashville 89 72 t 87 70 t Buenos Aires 57 42 c 54 40 r Toronto 84 69 t 79 60 t A P O L L O A T A E V I L
New Orleans 92 74 pc 92 76 pc Dubai 102 86 s 102 88 s Vancouver 64 51 pc 62 52 r a goat? prank calls backdrop C O R N E R D R U G S T O R E
New York City 68 63 sh 80 68 t Dublin 70 53 t 68 54 t Warsaw 86 62 t 84 63 pc T U T U C O L A K I T E S
Solve this puzzle online and discuss it at WSJ.com/Puzzles.
s

Oklahoma City 93 73 s 95 76 s Edinburgh 67 53 pc 69 54 t Zurich 77 56 t 73 54 t S T A T A W O L I C E R S

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

THE WALL STREET JOURNAL. * * Thursday, May 31, 2018 | A15

OPINION
The Year Politics Collapsed BOOKSHELF | By Sam Kean

The modern Saigon. March 12, Minne- turned and likely never Getting Smarter

©WALLY MCNAMEE/CORBIS VIA GETTY IMAGES

era of Ameri- sota’s Democratic Sen. will.
can politics— Eugene McCarthy comes Nineteen sixty-eight
defined by po-
larization and
nonstop inten-
s i t y— b e ga n
within a few hundred
votes in the New Hamp-
shire primary of upset-
ting President Lyndon B.
marked the start of polit-
ical polarization. Con-
trary to current myth,
the civil-rights legisla-
All the Time
WONDER
LAND with the cata-
clysmic events
Johnson. Within three
weeks, Johnson an-
tion of a few years before
was bipartisan. With the
AIQ
By Daniel
of 1968, now nounces he will not seek Vietnam War, unity be- By Nick Polson and James Scott
Henninger
celebrating, if his party’s presidential gan to unravel. (St. Martin’s, 262 pages, $26.99)

that’s the right
word, its 50th anniversary.
Everyone says the pace of
events in the Trump presi-
dency is overwhelming. Com-
pared with 1968, the past
year has been a walk in the
park.
Nineteen sixty-eight was
one of the greatest anni hor-
ribiles ever to happen inside
the U.S., producing war, as-
sassinations and riots.
The class of 1968
included Bill Clinton,
George W. Bush and
Donald J. Trump.
During the 2008 Demo-
cratic primaries, Sen. Barack
Obama, who turned 7 in 1968,
took a generational shot at
Sen. Hillary Clinton, who
turned 21 at Wellesley: “Sena-
tor Clinton and others, they
J
nomination. The late 1960s saw the
Four days later, Mar- An antiwar protest on Capitol Hill. beginning of left-liberal ust a few years ago, the New York City government was
tin Luther King Jr. is as- moral triumphalism. The getting 20,000 tips annually about landlords illegally
sassinated in Memphis. Urban Clinton (Georgetown), George opposition was no longer just converting building spaces into apartments—far too
riots break out across the U.S. W. Bush (Yale) and Donald J. wrong. It was morally suspect. many to investigate. So the housing department turned to an
April 23: Students occupy of- Trump (Penn). For a new generation of Demo- unlikely source to help zero in on probable violations:
fices at Columbia University Historians have tried to de- crats, which increasingly in- artificial intelligence. After churning through millions of
until police storm the building cipher this one year’s volcanic cluded the theretofore politi- data points, a computer program suggested that inspectors
a week later. June 3: Andy eruptions. For some, it was the cally neutral press, the look for two signs: spikes in utility bills and sanitation
Warhol is shot in New York by emerging political power of Vietnam War was opposed as, problems. Sure enough, inspectors who heeded these clues
Valerie Solanas, author of the televised images; Vietnam was simply, “a bright shining lie.” started catching five times more violators than before.
SCUM Manifesto, or “Society called “the living-room war.” A kind of political religios- Anecdotes like this are Rorschach blots for our feelings
for Cutting Up Men.” There was also pot, and the ity infused matters of sex, race about AI. Some people find them thrilling—pointing to a
Then, on June 5, while run- pill. and even foreign policy, and clever new tool for catching scofflaws. Others find them
ning for the Democratic presi- Generally underemphasized pushed the parties apart. The unnerving—should we blindly obey what the computers tell us
dential nomination, Robert F. by historians is that 1968’s pol- 1968 Kerner Commission Re- to do, even if we don’t understand why they’re telling us to do
Kennedy is assassinated at a itics had one other fuel source: port on the urban riots in it? As data scientists Nick Polson and James Scott reveal in
Los Angeles hotel. rock ’n’ roll music. 1965-67 announced that Amer- “AIQ: How People and Machines Are Smarter Together,” both
Aug. 8, Republicans nomi- The songs ran constantly in ica was “moving toward two sides are right.
nate Richard Nixon. Two the background, producing a societies.” Their book has two goals.
weeks later, the Soviet Union manic energy. But the sounds Some 10 years later, inevita- First, to document the reach of
invades Czechoslovakia. also smoothed and softened bly, the religious right AI in everyday life: It’s now
In late summer during the the reality of these events. A emerged. And here we are to- used to predict corn yields,
Democratic Convention in Chi- 1968 would not have happened day, fractured by politics and track gender bias in films, map
cago, police fight a pitched if driven by the music of 1948, technology into myriad cul- disease outbreaks and sort
battle with antiwar protesters 1958 or 1978. tural subsets of separations vegetables, among hundreds of
in Grant Park. In October, at The Rolling Stones recorded that began in 1968. The Trump other applications. But “AIQ”
the Summer Olympics in Mex- “Jumpin’ Jack Flash,” James divide was a long time coming. also aims to demystify AI. Each
ico City, Americans Tommie Brown released, “Say It Loud— Nearly every chronicle of chapter focuses on an algorithm
Smith and John Carlos raise I’m Black and I’m Proud,” and 1968 omits the last thing that in a different industry, tracing the

.
have been fighting some of the gloved fists as a black-power Steppenwolf raved through happened that year. On Dec. roots of each back to an innovator

same fights since the ’60s.”
Well yes, it’s the fight that
will never end.
It is impossible to under-
stand the relevance of that
year without a timeline.
Jan. 23: The USS Pueblo and
its 82 survivors are captured
ly
salute during a medal “Born to Be Wild.” 21, Apollo 8 lifted off. On from before the computer era. One
ceremony. It wasn’t all a rush. People Christmas Day, as it orbited chapter goes back to Isaac Newton’s
On Nov. 5, Nixon defeats could bliss out on musical pil- the moon, its commander, Col. stint at the Royal Mint, another to Flor-
Hubert Humphrey and a third- lows like “Hey Jude” by the
on Frank Borman, read from the ence Nightingale’s medical reforms in Crimea,
party populist, former and fu- Beatles, Otis Redding’s “(Sittin’ Book of Genesis and said: and so on. Each historical figure had a problem to solve and
ture Alabama Gov. George Wal- on) the Dock of the Bay,” Janis “From the crew of Apollo 8, we developed a novel solution. And luckily for later generations,
lace, who in the spirit of the Joplin’s “Piece of My Heart” or close with good night, good the solution proved useful in fields far beyond the original.
times told a group of antiwar Simon and Garfunkel’s dreamy luck and merry Christmas, and The authors discuss, for instance, one of the problems that
us l,

and taken hostage by North
Korea. On Jan. 30, North Viet-
nam launches the notorious
Tet Offensive, including an in-
vasion of the U.S. Embassy in
protesters: “I was killing fas- “Scarborough Fair.” God bless all of you—all of you bedeviled Newton at the Mint: “anomaly detection”—the
cists when you punks were in The music, mayhem and on the good Earth.” extreme variation in the weight and amount of silver used in
al a
e
diapers.” merriment were inseparable. It It was, until it ended, a each coin. For quality control, rather than weigh coins individ-
Also there is this: The grad- was a year in which the idea of more innocent time. ually, the Mint would set aside a few thousand at random and
uations of 1968 included Bill inhibition died. It hasn’t re- Write henninger@wsj.com. weigh them all together—a process called the Trial of the Pyx.
ci on

Unfortunately, Newton didn’t quite understand the mathe-

matics of interpreting these results (a rare mistake for him),

Trump Should Play the Long Game on Trade and it fell to later mathematicians to make the Trial accurate.
But once they did, it opened a bonanza for later researchers:
The authors write that “averaging lots of measurements
er rs

By Karl Rove Chinese joint-venture partner, semiconductors, 5G, the Inter- reducing tariffs on imported together is the most important idea in the history of data

I
f Commerce Secretary Wil-
bur Ross’s goal when he
often aided by a TRIM, may net of Things, robotics and American automobiles. This science,” and can be used for everything from detecting
coerce the transfer of a foreign electric vehicles. buys them time to develop credit-card fraud to hunting for radioactive bombs at ports.
partner’s technology. China provides key compa- crushing advantages in tech- Grounding AI in tried-and-true methods makes it seem
m e

flies into Beijing Saturday Third, the U.S. should press nies with low-cost capital, en- nology that will matter much less alien: Computers are simply faster ways to solve
is merely to pressure the Chi- for changes in Chinese pro- ergy and other resources that more in the coming decades. familiar problems. Hence the book’s title, a portmanteau of
nese to buy more American curement rules that require give them an unfair advantage Chinese negotiators would be AI and IQ—the point being that we need both.
m rp

goods, the Trump administra-
tion is wasting an opportunity.
A pledge by China to reduce
its trade surplus with the U.S.
is difficult to enforce and eas-
goods sold to the Chinese gov-
ernment to be made in China.
For U.S. companies, this can
only be done in combination
with a Chinese partner, which
co Fo
over non-Chinese enterprises,
especially in sales to the Third
World. Because they have state
subsidies, for example, Huawei
and ZTE already undercut com-
smart to tell Mr. Ross they are
reducing their 25% tariff on
imported U.S.-made automo-
biles. That—combined with a
promise to buy more U.S.
Still, Messrs. Polson and Scott recognize that this can be
an uneasy blend. How does Netflix “know,” more accurately
than my friends, what movies I’ll enjoy? How does Facebook
“recognize” my mug in photos? Such connections can seem
all the more spooky because, in many cases, the program-

ily discarded. It distracts from
the underlying problems in the
U.S. trading relationship with
China while giving the Chinese
more time to dominate the
technologies of the future.
Rather than short-term
tweaks to the balance of trade,
the administration should seek
long-term policy changes that
level the playing field and
strengthen the rule of law.
This requires focusing on four
critical issues.
then gains control of any tech-
nology used in the manufac-
turing process.
While the U.S. fixates
on steel, China seeks
to dominate 21st-
century technology.
Rules prohibiting practices
n-
panies like Ericsson, Fujitsu
and Nokia, grabbing business
across the globe that would go
to non-Chinese businesses if
the playing field were level and
enhancing Chinese dominance
in telecom.
While China aims to com-
mand the industries of the fu-
ture, the Trump administra-
tion is pursuing trade policies
to reclaim America’s share of
the last century’s economy by
fixating on goods like steel,
goods packed with valuable
technologies—would be a
small price to pay to keep the
Trump administration’s atten-
tion away from more impor-
tant issues.
U.S. policy makers should
remember that 70% of Ameri-
cans see foreign trade as “an
opportunity for economic
growth through increased U.S.
exports,” according to Gallup’s
February 2018 World Affairs
poll, while only 25%—the low-
mers who designed the systems don’t know the answer. As
the authors note, “the role of the programmer [in AI] isn’t to
tell the algorithm what to do. It’s to tell the algorithm how
to train itself what to do.” It’s AI alchemy—the program gets
the right answer, but no one can say why.
Artificial intelligence is a pervasive part of
modern life—used to predict corn yields and map
disease outbreaks, among other applications.
In response to this concern, the European Union recently

First, the U.S. should insist
on an end to China’s trade-re-
lated investment measures.
The Chinese use TRIMs to
no
like these are routinely in- aluminum and internal-com- est since the question was first implemented a regulation requiring all algorithms to be
cluded in trade agreement like bustion cars. While important, asked in 1992—see it as “a “explainable” by human engineers. This sounds reasonable,
the Trans-Pacific Partnership these industries employ an threat to the economy from even necessary sometimes: In Florida’s Broward County court
and the European Union’s free- ever-declining number of foreign imports.” system, AI sentencing programs can lead to longer terms for

pressure foreign companies
into transferring intellectual
property to Chinese partners
or licensing it on a noncom-
mercial basis as a condition of
doing business in China.
TRIMs amount to a sophisti-
cated shakedown with Chinese
bureaucrats playing the role of
white-collar extortionists.
Second, the U.S. should de-
mand the elimination of limits
on foreign ownership of Chi-
nese companies. These for-
eign-equity caps provide an-
other avenue for the seizure of
U.S. intellectual property. The
trade agreements. Working
with allies, the U.S. can and
should extend them to China.
Finally, the U.S. must
press—both in bilateral negoti-
ations with China and in the
World Trade Organization—to
end China’s trade-distorting
subsidies to state-owned enter-
prises. China has been clear
about its desire to dominate
key technological domains with
long-term economic, military,
and strategic significance. The
“Made in China 2025” targets
include artificial intelligence,
quantum computing, advanced
Americans and generate a di-
minishing share of gross do-
mestic product. Instead of try-
ing to protect these industries
by taxing American businesses
and consumers with high tar-
iffs, the administration should
safeguard the U.S. competitive
edge in the digital economy,
data analytics, biotechnology,
nanotechnology and other
likely drivers of 21st-century
economic growth.
The Chinese are happy to
engage in drawn-out discus-
sions about limiting steel and
aluminum sales to the U.S. and
America’s trade negotiators
should play the long game. The
Chinese are. One lesson of
American history is that U.S.
workers and innovators have
always been able to compete
with anyone when the rules
are fair. That should be the
Trump administration’s princi-
pal trade goal.
Mr. Rove helped organize
the political-action committee
American Crossroads and is
the author of “The Triumph of
William McKinley” (Simon &
Schuster, 2015).
those flagged as likely to commit future offenses, based on
demographic data. But because the algorithm judging them is
secret, the accused can’t really challenge its recommendations.
The authors denounce this practice of “treat[ing] a sentencing
algorithm in the same way you would treat a microwave oven,
by just punching in some numbers and walking away.”
Such algorithms cry out for explanation. In other cases,
however, the EU policy could harm people. AI programs
can already outperform dermatologists at scrutinizing
pictures of moles and other blemishes and picking out skin
cancer. We have only the faintest idea how they work. But
if they’re saving lives, who cares? Medicine needs an
infusion of AI more than any other field, Messrs. Polson
and Scott argue. The human body is extraordinarily
complicated, and we’re probably missing tons of genuine
connections between diseases and seemingly unrelated
symptoms. Doctors also spend up to one-third of their
time manually keying patient records into computers—a
colossal waste of their skills.

No Boys Allowed, and No Girls Either In response, the authors propose “Dr. Alexa.” This smart
speaker would listen in on consultations, update patient files
in real time and help sort through possible diagnoses. Back-
By Michael Taube neering gone crazy,” she wrote on the University of Mel- natives to princess costumes” end AI would then pool this data with those of other patients

M
ost children’s stories
are about girls and
boys—and that’s prob-
lematic, according to some
Australians. The city councils
of Melbourne and Manning-
ham, both in the populous
state of Victoria, are reportedly
“auditing” children’s books (as
well as toys) in kindergartens,
schools and libraries for “gen-
der stereotyping.”
This idea came from a study
published in March by the
Australian National University.
The authors suggested teach-
ers and institutions should at-
tempt to “minimise the extent
to which gender is labelled.”
Media organizations and
the right-leaning Liberal Party
erupted. So did parents like
Marie Hardwick. “For good-
ness sake, this is social engi-
on a parliamentarian’s social-
media page, as reported on
the website news.com.au.
“Leave kids alone to be kids.
Stop trying to destroy kids’
childhoods.”
An Australian ‘audit’
of children’s books for
‘gender stereotyping.’
Not to worry, replied Aus-
tralia’s social-justice warriors.
It was only one line in a 40-
page literature review, and
there were no plans to remove
Winnie the Pooh and Thomas
the Tank Engine books from li-
brary shelves “under new gen-
der guidelines informed by our
research,” as Tania King, one
of the paper’s authors, wrote
bourne website.
I read the literature review,
“Building Children’s Resilience
through Respectful and Gender
Equitable Relationships Pilot
Project,” and there’s more than
one line about gender stereo-
typing. There are specific
pages and chapters devoted to
this subject. This includes how
boys and girls determine toys
to be masculine or feminine,
and how girls who play with
feminine toys think about ca-
reer choices, social justice and
parenting styles.
Among the recommenda-
tions: “Avoid distinction on the
basis of gender,” “avoid hyper-
feminised toys such as Barbie
and Bratz dolls,” and “use
story time to introduce themes
of gender equity.” The authors
also recommended “a range of
interesting and desirable alter-
in schools and said toys should
“be examined to ensure that
they are not cueing gender as-
sociations in either subtle or
overt ways, in their colour,
shape or decoration.”
This story should serve as a
cautionary tale for North
American politicians, schools
and educators. The U.S. and
Canada have dealt, and are
dealing, with controversies in-
volving gender issues and ste-
reotypes, but never quite to
this extreme. Let’s make sure
it never happens here, so that
North American boys and girls
will live happily ever after.
Mr. Taube, a Troy Media
syndicated columnist and po-
litical commentator, was a
speechwriter for former Cana-
dian Prime Minister Stephen
Harper.
and tease out connections that no human would ever spot.
It sounds straightforward, and the technology to build this
system exists today. But Dr. Alexa needs data to train herself,
and the authors claim hospitals are “paranoid” about letting
AI loose on patient records. Whatever the reason for this
attitude, few AI scientists work in health care, a situation the
authors call “a moral embarrassment. We live in an age . . .
when your propensity to click on an ad for dog food is
analyzed on supercomputers. . . . [Yet] we still rely on
numbers that Florence Nightingale could have crunched with
pen and paper to quantify the risk that your kidneys will fail.”
This passage highlights the moral core of “AIQ”: “When it
comes to the important decisions in life, we can and should
combine artificial intelligence with human insight and human
values.” If ceding some decisions to artificial brains still
seems scary—well, modern life is scary. Politicians and CEOs
make terrible decisions all the time, sometimes willfully. AI
will make mistakes, but is the status quo superior? After all,
“biased and ill-informed decision-making algorithms,” the
authors note, “are no less pernicious just because they run on
little grey cells rather than little silicon chips.” Uncanny or
not, AI is more intelligent than IQ sometimes.
Mr. Kean is the author, most recently, of “Caesar’s Last
Breath: Decoding the Secrets of the Air Around Us.”
 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.

A16 | Thursday, May 31, 2018 THE WALL STREET JOURNAL.

OPINION
REVIEW & OUTLOOK LETTERS TO THE EDITOR

Big Labor’s Back Door Into Boeing NFL Players to Rise for the National Anthem

B
oeing workers in North Charleston, S.C., vorable vote in workplaces where they face As a retired military officer I sup- and put professional and amateur
are united—against union representa- broad opposition. port the young men who choose to sports in perspective. In my opinion,
kneel as a protest against racial in- the only sporting events at which
tion. So should a small subset of em- The now Republican-controlled NLRB took
justice and police brutality. The NFL our national anthem should be
ployees be allowed to orga- a good first step toward re- owners’ action isn’t about patrio- played are events in which our U.S.
nize anyway, even if it Rejected last year, the storing the rights of all tism. They are simply trying to pro- national teams are competing.
potentially harms the rest?
That’s the question before the
machinists now have a workers when it overturned
Specialty Healthcare last De-
tect their profits (“NFL Adopts New
Anthem Policy,” Sports, May 24).
DAVID R. WITTE
Plymouth, Minn.
National Labor Relations ‘micro’ strategy with cember. Its PCC Structurals I support the players who protest
Board this week. And what decision put the burden of because when I was commissioned I The national anthem takes only 60
happens will have national
wide implications. proof back on the unions, re- took an oath to support and defend seconds of a 3½-hour game. Stand up
significance, especially as turning to the earlier NLRB the Constitution of the United States and be quiet. Give the players five
technology makes manufac- precedent when micro units against all enemies foreign and do- minutes later in the game to “pro-
turing work more specialized. could be formed only by a group of workers mestic. I didn’t get to choose which test” if, as they say, it isn’t about
amendments to the Constitution or disrespect of the flag. Most of us
The drama began last week when NLRB Re- whose job is truly distinct and separate
whose rights and freedoms I would simply want our football, concerts
gional Director John Doyle Jr. gave the ap- within the company. support and defend. The First and awards shows to be held without
proval for 178 production and maintenance The problem now: As new technology makes Amendment protects freedom of politics included. There are other
workers on the flight line to vote on forming manufacturing more efficient, more workers speech, the press, assembly and the venues for that.
a so-called union micro unit. Those workers will hold specialized jobs. That strengthens the right to petition the government for JIM BUMGARDNER
will cast their ballots Thursday, and if the In- case for forming a micro unit. At the same time, a redress of grievances. In defending Gresham, Ore.
ternational Association of Machinists gets the these specialists often hold critical roles in the First Amendment rights and
support of more than half, it will establish a manufacturing operations, so their decision to freedoms of all Americans, this in- Memo to the NFL Players Associa-
presence in the North Charleston plant. organize may well affect their colleagues else- cluded, for example, the rights of tion: Please give us a list of success-
But there’s good reason for bad blood be- where. Practically, this looks a lot like Specialty bigots, white supremacists and oth- ful businesses whose employees as-
ers to assemble in the town square, sert the right to express political
tween most workers in North Charleston and Healthcare.
call me a n— and tell me that this viewpoints to paying customers who
the union. Acting at the behest of the same ma- This dilemma is at the heart of the Boeing isn’t my country. If I could defend could be offended by that action.
chinists’ union, the NLRB filed a complaint in case. In his ruling last week, NLRB Regional Di- their rights, I sure can defend the Considering the cost of the NFL tick-
2011 seeking to block Boeing from opening op- rector Doyle made special note of PCC Struc- rights of young men who have sim- ets, the fans deserve to see the play-
erations in right-to-work South Carolina. The turals. But he allowed the vote to go forward ply chosen to kneel in protest ers demonstrate their playing skills,
Democrat-controlled NLRB dropped the case because the flight-readiness technicians and against racial injustice and police not their opinions on social issues.
only after the union had wrung costly conces- technician inspectors’ skills, training, salary brutality. They are not antimilitary BRUCE MATTHEW
sions from the airplane company in Washing- and supervision substantially differ from other nor are they attacking police officers West Greenwich, R.I.
ton State. employees. But in North Charleston, a disrup- or advocating violence, and I applaud
South Carolina workers didn’t take kindly to tion from these workers’ micro unit could snarl them for standing up (or kneeling in Would women have the right to
labor leaders using their jobs as a bargaining work across the entire Boeing plant. this case) for their convictions. vote today if they were told to pro-
While I love our flag and stand at test only inside their homes? Would
chip, and last year 74% of Boeing’s 3,000 North Boeing has appealed the regional director’s
attention whenever I hear our na- African-Americans have equal pro-
Charleston employees voted against joining the decision to the full NLRB. And in its petition to tional anthem, I did not serve to de- tection under the law if the civil-
machinists’ union. A micro unit would give or- stay Thursday’s election, Boeing argues that the fend the flag or the anthem, as these rights movement was confined to

.
ganized labor a foothold anyway. NLRB regional director’s decision would “ac- are symbols. I proudly served to de- churches? The history of nonviolent

ly
Such situations illustrate why micro units commodate nearly any micro-unit in an inte- fend the actual rights and freedoms social reform is a history of doing
remain controversial, but Democratic appoin- grated manufacturing system, essentially spell- of all Americans as outlined in the what is needed without asking for
tees to the NLRB in the Barack Obama years ing the death knell for manufacturing facilities Constitution. permission.
made their approval the default. The NLRB like Boeing South Carolina.” That can’t be the
on MICHAEL E. WATERS The NFL owners have tried to si-
shifted the burden of proof to employers with result most Boeing workers want. Elmore, Ala.
lence the players’ protest by hiding
its 2011 Specialty Healthcare decision. An eleventh-hour stay on the vote itself is it in the locker room. They have
To successfully challenge an attempt to unlikely, but the NLRB could decide to impound What does our national anthem tried to make this about football
have to do with an NFL game or any when really it is about their own in-
us l,

form a micro unit, they ruled, employers had the ballots until it issues a ruling. And even if
professional or amateur sports game terests. The owners have tried to
to demonstrate that other workers within the the votes are counted, the outcome is still up for that matter? The NFL is a fine take the attention off the issue by
company also shared an “overwhelming com- for NLRB appeal. As the NLRB decides whether
al a
e
organization, and football is a na- making the issue about the players
munity of interest” with those seeking to join to intervene, it should consider the spirit of the tional pastime bordering on obses- themselves, more than about what
a union. That’s a steep standard, so in practice law. A minority faction shouldn’t be able to sion, but they have nothing to do they are kneeling for.
ci on

the ruling allowed unions to gerrymander a fa- overrule everyone else in the workforce. with our Constitution, our country or GEORGE CASSIDY PAYNE
our patriotism. We need to step back Rochester, NY.

Russia Murder Inc.

H
er rs

ow dangerous is life in exile for a Rus- schemes, was murdered outside a hotel. NLRB Acting Like It Has Something to Hide
sian critic of Vladimir Putin? Danger- Meanwhile, on Wednesday investor Bill Regarding your editorial “Funny sional staffers pinged Mr. Berry for
ous enough that Arkady Babchenko Browder was briefly detained in Madrid on a Business at the Labor Board” (May the timing of the investigation’s re-
was willing to fake his own trumped-up Russian Interpol
m e

17): The National Labor Relations lease. One email message also shows
murder to help Ukrainian se- A faked murder in arrest warrant for “fraud.” Board Inspector General Office has that Mr. Berry was concerned “that
curity officials foil an assassi- Ukraine highlights the Mr. Browder is the driving responded to the Competitive Enter- the ethics officers were reading the
m rp

nation attempt. force behind the so-called prise Institute and National Right to [ethics] pledge too narrowly,” i.e.,
On Wednesday Ukrainian risks to dissidents. Magnitsky laws, which have Work Legal Defense Foundation’s that they didn’t agree with Mr. Berry,
authorities announced that Mr. been adopted by the U.S., Can- Freedom of Information Act requests, and that Mr. Emanuel needed to re-
Babchenko was alive a day af- ada, Britain and Baltic coun- which were submitted independently cuse himself in the Hy-Brand case.
ter they said he had been shot and killed as he tries to sanction Russian human-rights abus- and separately. Both sought commu- So, while the NLRB IG office re-
co Fo

nications between the NLRB IG office fuses to make available under FOIA
opened his apartment door in Kiev. Ukrainian of- ers. Interpol quickly denied the existence of a
and members of Congress or their all responsive documents, Mr. Berry
ficials didn’t release details of what they said warrant, and Spanish authorities released Mr. staff in regard to the ethics investi- seemed comfortable leaking informa-
was a plot hatched in Russia to kill Mr. Bab- Browder, but he is clearly at or near the top of gation into NLRB board member Wil- tion to Hill staffers. Is it possible
chenko, though they have made one arrest. Mr. Putin’s enemies list. liam Emanuel’s participation in the that some of the documents he’s
The 41-year-old Mr. Babchenko made a name The message of this extraterritorial murder Hy-Brand case that overruled the withheld from public disclosure con-
for himself as a war correspondent and has be- and intimidation spree is that nowhere is safe Obama NLRB’s controversial “joint tain information that shows Mr.
come one of the boldest critics of Mr. Putin’s rule for Kremlin critics, and it’s good to see that employer” standard. Berry pressuring the NLRB ethics of-
and his invasion of Ukraine and adventurism in Western countries are finally responding. After The NLRB provided only a portion ficer to change her legal opinion?
Syria. After numerous death threats, he left Rus- the Russian nerve-agent attack in March on for- of the 242 pages of records respon- The aptly headlined Journal edito-
sia in 2017 and eventually settled in Ukraine. He mer spy Sergei Skripal and his daughter in sive to the CEI’s request, and even rial is right that there is certainly
spoke about the Kremlin’s propaganda machine Salisbury, Britain expelled Russian spies and is fewer records responsive to the foun- some funny business going on at the
dation’s request. This limited disclo- NLRB. That’s why it is time for Con-
in March at Garry Kasparov’s PutinCon confer- considering more measures. The Trump Admin-
sure shows that NLRB IG David Berry gress to exercise its oversight au-
n-

ence in Manhattan. istration has sanctioned Mr. Putin’s inner circle provided Senate Health, Education, thority and determine whether Mr.
Kiev has become a killing field for Kremlin and lobbied countries like Latvia to stop laun- Labor & Pensions Committee staff Berry’s investigation was conducted
critics. Belarussian journalist Pavel Sheremet dering Russian money. with information about the pending above board.
was killed by a car bomb in July 2016. In March More needs to be done to expose and stop investigation via email, telephone RAYMOND J. LAJEUNESSE JR.
no

2017, former Russian Member of Parliament Russian Murder Inc., and let’s hope Ukraine tells and at least one Skype conference National Right to Work
Denis Voronenkov, who claimed to have intimate the world more about this latest plot to kill Mr. with Democratic staff, while congres- Legal Defense Foundation
knowledge of high-level Russian corruption Babchenko. TREY KOVACS
Competitive Enterprise Institute
The Civilized Do the Right Washington
Auto Tariffs Mean Lost Jobs Thing Without Compulsion

P
resident Trump tweeted “big news com- That sounds swell until you learn that far
The logical extension of Sen. Joe No Wonder Evergreen State
Lieberman’s point (“A Holiday for the
ing soon for our great American more jobs—292,411—would be lost as the effect Rule of Law,” Houses of Worship,
Is Losing So Many Bodies
Autoworkers” ahead of his Administra- of the duties ripples across the economy. That May 18) is that by choosing to adhere Regarding Jillian Kay Melchior’s
tion’s announcement last week means a net job loss of some to the tenets of faith, a society needs “Rough Social Justice at Evergreen
that it will seek new tariffs on Plenty of Trump 157,000, “including 45,450 fewer secular laws. The measure of a State” (op-ed, May 23): The situation
imported autos and auto parts. voters will suffer with manufacturing jobs in non-au- civilized society is how many times at Evergreen State and many other
If he had more Twitter charac- tomotive sectors.” and ways people do the right thing campuses reminds me of nothing so
ters, perhaps Mr. Trump a 25% tax on imports. The report concludes that without there being a (secular) law much as the Chinese Cultural Revolu-
would have added, “Tough “about three jobs would be that makes them do it. tion of 50 years ago. Perhaps we
JIM LEMUNYON should think of Evergreen as “the
luck for the rest of you.” lost elsewhere in the economy
Oak Hill, Va. Cultural Revolution with American
Just kidding, but that would have been ac- for every U.S. motor vehicle job gained” and characteristics.”
curate. Mr. Trump is boasting of potential “GDP would decline by 0.1 percent as higher KEVIN FOGARTY
gains for one narrow constituency from his lat- costs, net job losses, and declines in producer Myrmidons Are Loyal Civil Cincinnati
est protectionist threat. But he’s ignoring the and consumer spending power work their ways
forgotten Americans who will lose their jobs through the economy.” Servants, but to Whom?
when U.S. competitiveness and economic The study also finds that export competitive- Holman Jenkins has provided the Pepper ...
growth suffer. According to a new study from ness would decline, dragging down the total perfect one-word description for bu-
the Washington-based Trade Partnership value of U.S. exports by 2% when the President’s reaucrats—myrmidons (“Why the
And Salt
Worldwide released Tuesday, the pain could be goal is to increase exports. History shows that AT&T Case Suddenly Matters,” Busi- THE WALL STREET JOURNAL

significant. industries sheltered from the need to innovate ness World, May 12). The problem
with our myrmidons, in this case, is
The Commerce Department is using Section get soft and less competitive—the opposite of
whether they know to whom they are
232 of the Trade Expansion Act of 1962 to inves- what the U.S. industry did when it was exposed supposed to be loyal. Their loyalty
tigate if imported vehicles and parts are a to Japanese competition in the last half of the should be to the taxpayer, but I fear
threat to national security. If a threat is found, 20th century. Remember “just in time” manu- it is to the Democrats to whom they
or in this case concocted, Commerce can recom- facturing adopted from Japan? overwhelmingly pledge their alms.
mend duties and quotas to curb imports. This is also without accounting for the retal- Here is hoping some people beside
The Trade Partnership’s policy brief, “An Ac- iatory tariffs that U.S. trading partners are the choir are reading Mr. Jenkins.
cident Waiting to Happen?,” estimates the net likely to impose on American exports. None of MICHAEL P. CARTER
impact on U.S. jobs over one to three years from this is news to American car markers, which op- Savannah, Ga.
a 25% tariff “on U.S. imports from all countries pose the new tariffs.
of automobiles, SUVs, light trucks, other vehi- Mr. Trump may think that sounding tough Letters intended for publication should
cles and parts.” It finds that U.S. auto and auto- on imports will help Republicans in November. be addressed to: The Editor, 1211 Avenue
of the Americas, New York, NY 10036,
parts workers would gain as many as 92,400 But sooner or later he’s going to have to climb or emailed to wsj.ltrs@wsj.com. Please
jobs as firms adjust to the new rules. Comple- down from this destructive policy that is cer- include your city and state. All letters
mentary industries that add jobs due to the tar- tain to harm one of America’s most competitive are subject to editing, and unpublished “The good news is that I remember
iffs could take the total number of new employ- industries along with tens of thousands of the letters can be neither acknowledged nor you from high school. Unfortunately,
returned.
ment opportunities to 135,120. men and women who voted for him. that’s also the bad news.”
 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.
THE WALL STREET JOURNAL.
When Reagan Met Lenin
By Roger Kimball
T
wenty eighteen has been
full of backward glances.
The most frequent subject
has been that singular
year 1968, fulcrum and fo-
cal point of everything we sum up in
that dread phrase “the ’60s.”
A less depressing prospect is on
view if we travel back not 50 but 30
years, to May 31, 1988, when Ronald
Reagan, in the last year of his presi-
dency, delivered one of his most
magnificent speeches. At the end of
his first inaugural address, Lincoln
famously spoke of the “mystic
chords of memory” that, beckoning
toward truths that transcend party
differences, recall us to the “better
angels of our nature.” Reagan did
something similar in his speech be-
fore a packed auditorium of students
at Moscow State University.
Three decades ago an
American president
issued a cry for freedom
at Moscow State University.
It was the last day of his fourth
and final summit with Mikhail Gor-
bachev. They had first met on neu-
tral ground, in Geneva, in 1985, and
the next year in Reykjavik, Iceland. A
Washington summit followed in 1987.
Now Reagan had traveled to the So-
viet capital. The ostensible purpose
of all these meetings was to work out
arms-control agreements, and the
two had made significant progress.
In Washington, they had signed a
pact to eliminate a whole class of in-
termediate-range nuclear missiles.
They had also laid the groundwork
for the future reductions that would
come with the 1991 Strategic Arms
Reduction Treaty.
But Reagan never regarded his
meetings with Mr. Gorbachev as per-
taining solely to arms control. Arms
control was merely the pretext for a
more fundamental challenge. This is
the deep point of Bret Baier’s force-
ful new book, “Three Days in Mos-
cow: Ronald Reagan and the Fall of
the Soviet Empire.” Mr. Baier traces
It All Comes Out in the Greenroom
By John Brabender
A
s a Republican media consul-
tant, I’m routinely invited to
represent the right-leaning
view on left-leaning news outlets,
including CNN, MSNBC and NPR.
Usually I’m invited to appear along-
side two liberal panelists, a liberal
show host, and a viewing audience
rooting for my competitors. I’m not
expected to take a dive, but every-
thing is arranged to make it hard for
me to win the argument.
Truth be told, I enjoy the chal-
lenge. The real reward, however, is
the time spent beforehand in the
greenroom. Hours waiting to go on
air have given me a unique opportu-
nity to meet a bunch of liberal jour-
nalists, activists, progressive politi-
cians and Hollywood celebrities.
They have all been friendly.
What have I learned from observ-
ing the other side of the political
no
universe up close? Liberals are
united in the belief that the election
of Donald Trump constituted a cata-
clysmic anomaly in the political cos-
mos. They believe in their hearts
that this cataclysm was instigated
by an outside agent using cyber chi-
canery. Equally clear is their new-
found collective purpose in life—to
rectify this horrific reality any way
they can.
I’ve listened in on numerous con-
versations about how voter manipu-
lation is the only plausible explana-
tion for Mr. Trump’s victory. One
segment producer explained to me
that despite the more than $1 billion
in total marketing dollars spent on
the presidential race—and almost
two years of daily news coverage of
the campaigns—it was the approxi-
mately $200,000 that might or
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the arduous evolution of
Reagan’s diplomatic efforts
with the Soviet Union, from
before his famous “evil em-
pire” speech in 1983 through
that final summit in Moscow
and beyond. If the theme is
diplomacy, the underlying
purpose is liberty.
In 1977, noting to a friend
that “a lot of very complex
things are very simple if you
think them through,” Reagan
crisply summed up his
theory of the Cold War: “We
win, they lose.” He never lost
sight of that conviction. Nor
did he waver in his under-
standing that weakness is an
invitation to conflict. He did,
however, understand that
victory would belong in the
end not to one nation over
another, but to one political-
moral idea over another.
Freedom must triumph over
totalitarianism. Reagan had
always abominated commu-
nism. But when the reporter
Sam Donaldson, a waspish
critic of Reagan, asked him
in Red Square, “Do you still
think you are in an evil em-
pire?” Reagan replied, “No, I
was talking about another
time, in another era.” And
for a few years, Moscow
truly had changed.
Reagan’s ultimate aim was
to plant the seed of freedom Reagan
in the newly receptive fur-
rows of a cracking totalitarianism.
“Mr. Gorbachev, tear down this wall,”
he cried at the Brandenburg Gate in
1987. “Isn’t it strange,” he mused to
reporters, “that there’s only one part
of the world and one philosophy
on
where they have to build walls to
keep their people in.”
Looking back on it, the fall of the
Berlin Wall in November 1989 seems
us l,
almost like “a spontaneous combus-
tion,” Mr. Baier observes. In fact, “it
al a
e
was an evolving scenario,” the prod-
uct of irresistible historical forces,
perhaps, but also of patient, thor-
ci on
oughgoing diplomacy.
The media pilloried Reagan’s anti-
missile research program, the Strate-
gic Defense Initiative. In their view,
SDI was a “Star Wars” fantasy that
er rs
m e
might not have been spent by the
Russians on social media that tipped
m rp
the race in Mr. Trump’s favor. If so,
those were the most effective ads in
political history, despite the spelling
mistakes.
The conversations I’ve heard re-
co Fo
garding the president’s mental
state have been even more bizarre.
I’ve heard it all—he is on medica-
If you think liberal talking
heads are obsessed with
Trump, you should hear
what they say in private.
tion that causes erratic behavior,
n-
he has a mental illness, he has been
brainwashed or blackmailed by the
Russians.
Mind you, these aren’t presented
as far-fetched theories. They are
treated like realistic explanations for
every tweet, speech and political
move the president makes.
I’ve also noticed a remarkable
shift in the context of questions
asked by talk-show hosts in the
Trump era. Questions today are of-
ten loaded in an editorial manner.
Assumptions and conjecture are spo-
ken like accepted truths. During a
recent appearance I was told in ad-
vance to expect discussion of the
“fact” that Republican politicians
who have committed crimes no lon-
ger need to worry about being
chased from office. On another show
the host asked, “Is President Trump
guilty or crazy?”
The smartest, most connected,
and most quoted person in all of
Washington this year is somebody
Robert Thomson
Chief Executive Officer, News Corp
William Lewis
Chief Executive Officer and Publisher
DOW JONES MANAGEMENT:
Mark Musgrave, Chief People Officer;
Edward Roussel, Chief Innovation Officer;
Anna Sedgley, Chief Operating Officer
OPERATING EXECUTIVES:
Ramin Beheshti, Product & Technology;
Kenneth Breen, Commercial;
Jason P. Conti, General Counsel;
Frank Filippo, Print Products & Services;
Steve Grycuk, Customer Service;
Kristin Heitmann, Chief Commercial Officer;
Nancy McNeill, Advertising & Corporate Sales;
Christina Van Tassell, Chief Financial Officer;
Suzi Watford, Chief Marketing Officer;
Jonathan Wright, International
DJ Media Group:
Almar Latour, Publisher
Professional Information Business:
Christopher Lloyd, Head;
Ingrid Verschuren, Deputy Head
OPINION
sue. Still, despite their anger
at the time, both men came
to appreciate that their
agreement on nuclear disar-
mament transcended their
differences.
It is curious how many
Reaganesque themes find a
contemporary echo. In his
first inaugural address, Rea-
gan noted that “in this pres-
ent crisis, government is not
the solution to our problem;
government is the problem.
From time to time we’ve
been tempted to believe that
society has become too com-
plex to be managed by self-
rule, that government by an
elite group is superior to
government for, by, and of
the people.” Sound familiar?
Reagan delivered his Mos-
cow speech standing before
a gigantic scowling bust of
Lenin and a mural of the
Russian Revolution. He in-
WOJTEK LASKI/NEWSMAKERS VIA GETTY IMAGES
corporated them as props in
his address. “Standing here
before a mural of your revo-
lution,” he said, “I want to
talk about a very different
revolution,” a technological
and “information revolution”
that was transforming the
world. How much progress
had already been realized!
But progress was not foreor-
dained. “The key,” Reagan
at Moscow State University, May 31, 1988. said, “is freedom—freedom
of thought, freedom of infor-
only an out-of-touch B-movie actor mation, freedom of communication.”
could take seriously. But Reagan As we mark the 30th anniversary
clung fast to it, against the ridicule of that triumph of diplomacy—the
of his countrymen and the strenuous Cold War was over a few years
objections of Mr. Gorbachev. In the later—it is worth recalling both Rea-
end, SDI not only underlay the his- gan’s celebration of freedom and his
toric nuclear-arms reduction treaty understanding of democracy. “Less a
between the two nations, but also system of government,” he said, than
dramatized the superior technologi- “a system to keep government lim-
cal prowess of the U.S., fueled by the ited, unintrusive: a system of con-
mighty economic engine of the free straints on power to keep politics
market. It was another vindication of and government secondary to the
Reagan’s mantra, “peace through important things in life, the true
strength.” sources of value found only in family
Reagan’s approach didn’t always and faith.”
work immediately. After a promising
first meeting in Geneva, he and Mr. Mr. Kimball is editor and pub-
Gorbachev found themselves at log- lisher of the New Criterion and presi-
gerheads in Reykjavik. Reagan’s re- dent and publisher of Encounter
fusal to budge on SDI was the key is- Books.
called “Unnamed Source.” This fel- tional Democrats, to run as a Re-
low’s unmatched knowledge has reg- publican for U.S. Senate in Louisi-
ularly led CNN to deploy the “Break- ana.
ing News” chyron, once reserved for Bookers are especially on the
truly developing stories like terror- lookout for Republican strategists
ist attacks and outbreaks of pan- willing to bash President Trump.
demic disease. What will the net- Doing so not only gets you invited
work do if it ever turns up a real back, it can lead to becoming a paid
smoking gun—say, a videotape in contributor. You could even get your
which President Trump is caught se- own show.
cretly confiding to the Russian pres- The most serious and unfair con-
ident that he will have more flexibil- sequence of all this is that President
ity to negotiate after he’s re-elected? Trump’s successes have gone under-
It isn’t only the hosts and the reported. Historic unemployment
guests. Even the people who book numbers, the destruction of Islamic
these shows are often eager to pro- State in Syria and Iraq, and a poten-
mote an anti-Trump narrative. It tial breakthrough regarding nuclear
was considered a major coup when negotiations with North Korea have
CBS scored a “60 Minutes” exclu- all been pre-empted in favor of cov-
sive interview with porn star erage of more important events—
Stormy Daniels. Not only did the in- like James Comey’s vaudevillian
terview produce no new informa- book tour. Welcome to the new nor-
tion, but “60 Minutes,” like most mal.
news organizations, somehow for-
got to mention that Ms. Daniels was Mr. Brabender is a partner at
recruited in 2009, apparently by na- BrabenderCox.
Dry the Friendly Skies
By Satish Jindel ruptive passengers? When I’ve
A
asked flight attendants, they’ve
man was arrested after what overwhelmingly supported a ban on
one news report called “a in-flight alcohol.
screaming tirade involving Drunken passengers might still
spit and blood” on an American Air- occasionally appear at the gate—al-
lines flight on May 23. An attendant cohol would still be available at air-
had refused to serve the man an- port restaurants and lounges. Then
other beer, concluding he was al- again, a ban would benefit those
ready intoxicated. To avoid such in- restaurants, which have been hurt
cidents, airlines should stop serving since nonpassengers were banned
alcohol altogether. from secured areas of the airports.
As a frequent flier—Executive
Platinum status with American—I
often witness disruption caused by Smoking is forbidden
excessive drinking. On a recent
flight from Pittsburgh to Miami, the on flights. For safety’s
passenger next to me in first class sake, alcohol should
started drinking soon after depar-
ture—at 7:30 a.m. He consumed at be banned as well.
least four small bottles before the
flight attendant refused to serve
him more. I had to tolerate his loud A ban on in-flight alcohol also
complaints for the rest of the flight. would be good for passengers’
For decades, airlines allowed health. Alcohol consumes oxygen,
smoking, despite complaints from and any medical professional will
nonsmoking passengers about the confirm that at 30,000 feet in the
smoke wafting into their section. air, the human body is already low
Airlines incurred only costs from in oxygen.
these smokers: Passengers brought As smokers have adjusted to non-
their own cigarettes, while airlines smoking flights, drinkers would also
had to pay for cleaning the cabin adjust. If the airlines fail to act in
and the air. When the U.S. banned the best interest of themselves and
smoking on most domestic flights in their passengers, Congress and the
1990, it was all financial upside for Federal Aviation Administration
the airlines. should do so—as they did with
By contrast, security restrictions smoking.
mean passengers can’t bring alco-
hol into the cabin. Airlines thus Mr. Jindel is founder of SJC Con-
have a monopoly on drink sales, sulting Group, which works in the
which is a revenue center. But is it transportation and logistics indus-
worth the cost of dealing with dis- tries.
Thursday, May 31, 2018 | A17
Entitlements
Will Eat
America’s
Economy
By John R. Kasich
W
hen I was chairman of the
House Budget Committee
in 1997, Republicans and
Democrats in Washington saw past
our differences to balance the fed-
eral budget for the first time in de-
cades. Working together, we man-
aged to follow up that success with
three more balanced budgets. Yet
it’s been 17 years since lawmakers
and the White House approved a
spending plan that didn’t add to
the national debt.
Rather than tackling their bud-
get responsibilities head-on, each
successive Congress and adminis-
tration has passed temporary, stop-
gap spending bills. In fact, Wash-
ington set a record for that policy
of avoidance in 2017 by passing six
short-term extensions in less than
a year.
As we did in the 1990s,
lawmakers should put
aside partisanship and
get to work on reform.
.
Then it got worse. The latest
ly
spending bill, approved in February,
did more than continue to fund the
federal government; it also set
America on a course to add at least
$1 trillion a year to the national
debt by 2020. That lawmakers
could approve such a spending
spree at a time when the national
debt surged past $21 trillion should
set off alarm bells for families
across the nation.
It took almost 200 years for the
federal government to accumulate
its first $1 trillion in debt. The
next $20 trillion took less than
four decades.
What can the country do to dig
itself out of this massive fiscal
hole? What can it learn from a
time—only 20 years ago—when the
nation and its leaders pulled to-
gether to balance the budget?
The answer is clear. Republicans
and Democrats in Congress must
put aside divisive (and pointless)
sound-bite politics and at long last
get serious about meaningful
spending restraint and entitlement
reforms. Those discussions should
begin with proposals to deal with
the costs of Medicaid, Medicare
and Social Security, which are the
greatest contributors to spending
and debt. Congressional leaders
from both parties must pledge to
vote on a package of meaningful
reforms.
Why is entitlement reform so
important? Because government
spending and increased borrow-
ing—driven by entitlements—con-
tinue to gobble up America’s gross
domestic product, putting economic
growth at risk. Without growth, the
debt can’t be paid down. While
raising the debt ceiling will give
the federal government temporary
relief from the specter of default
and unpaid bills, it is by no means
an acceptable long-term solution.
America simply can’t allow this
debt to grow—or even to remain at
present levels—unless the goal is to
strangle economic growth, push in-
terest rates higher and put fiscal
well-being and national security at
risk.
Tackling the growing costs of
entitlements doesn’t mean Ameri-
cans must turn their backs on
those who have fallen on hard
times and need help. As governor
of Ohio, I oversaw an effort that re-
formed our Medicaid program dra-
matically. Without denying cover-
age to those who relied on it, we
cut annual growth from a 9% yearly
average in 2009-11 to an average of
less than 2% since 2016. Success is
possible.
For Congress, solutions demand
throwing aside political gamesman-
ship and finding a willingness to
act. That may be difficult in the
current political climate, but it can
be done. Remember the example of
1997, when a bipartisan coalition in
Congress worked with a Democratic
president to reform the welfare
system, rein in military spending,
and balance the federal budget.
There were, of course, disagree-
ments along the way, but they
never overshadowed the shared
goal of seeing that the nation found
a way to live within its means.
Time is running short and Amer-
ica’s time bomb of debt continues
to tick. We’ve made progress be-
fore, so there is no reason we can’t
do it again. It is long past time for
leaders on both sides of the aisle to
learn from the past and commit to
the future.
Mr. Kasich is governor of Ohio.
 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.

A18 | Thursday, May 31, 2018 * * THE WALL STREET JOURNAL.

WORLD NEWS

In Turkey, Lira’s Fall Gives Rise to Doubts

A month before
Rapid Drop
elections, some voters How many Turkish lira
question Erdogan's one U.S. dollar buys
ability to lift economy 3.6 lira

BY YELIZ CANDEMIR 3.8

ISTANBUL—There were few 4.0

customers at a clothing shop
in Turkey’s megalopolis late
4.2
last week, but Esra Yildirim
was still in a rush.
She was racing to keep up 4.4
with a rapid drop in the Turk-
ish lira. Although the pajamas 4.6 Scale inverted to
she sells are sewed locally, show declining lira
they are made with imported
4.8
materials, and her supplier is
raising prices by the day. J F M A M
“I’m busy updating price Source: WSJ Market Data Group
tags,” the 30-year-old manager THE WALL STREET JOURNAL.
said. “Sometimes, I’m not yet
finished with a pile that I have polls suggest Turks have
to start again.” grown more pessimistic about
EMRAH GUREL/ASSOCIATED PRESS

One month ahead of national the economic outlook, and the

elections in which President confidence of consumers, a
Recep Tayyip Erdogan is seek- major driver of the Turkish
ing a new mandate, the fast- economy, has dropped to a
weakening lira has left some five-month low in May.
voters questioning a claim by Rivals to Mr. Erdogan in the
the long-dominant Turkish presidential race have homed in
leader that he knows the way on the lira’s weakness to criti-
to economic prosperity. cize the president’s economic
The lira, which has shed a Supporters of Turkish President Recep Tayyip Erdogan, shown in poster at right, attended a campaign rally in Istanbul on Tuesday. record. The drop “will come
fifth of its value against the back to us in the form of higher
dollar this year, has been hit by at gas stations, in particular, base of support among small tors. That has brought some re- have questioned their reliability inflation and even higher inter-
a wider storm sweeping because Turkey imports most businessmen and middle-in- spite for the lira, which was up as authorities, which imposed est rates,” Muharrem Ince, can-
through emerging markets of its fossil fuel. come workers, says he is op- more than 1% on Wednesday, emergency rule in the wake of didate for the secular Republi-
caused by a sharp rise in the “I’m filling only half of my posed to high interest rates be- trading at 4.49 to the dollar. the 2016 failed coup, are crack- can People’s Party, or CHP, the
dollar. But Mr. Erdogan, some tank,” said 40-year-old Funda cause they slow down “The critical question at ing down on independent me- main opposition force in Parlia-

.
analysts say, bears some re- Sevinc, as she parked at a ser- investment. Instead, Mr. Erdo- this juncture is whether the dia, the military and judiciary. ment, said at a rally last week.

sponsibility for the bruised lira vice station in Istanbul on
and double-digit inflation be- Tuesday. “And we are going
cause he has publicly expressed out less on the weekends.”
opposition to interest-rate in- Many economists say Turkey onnational currency by buying lira.
creases, a traditional tool to must signal it is committed to
support an ailing currency. prodding the lira, or risk being
Turkish households have hit by an exodus of foreign in-
been on the front row of the vestors. But the president, who
us l,
gan has urged Turkish people
“who have euros and dollars un-
der their pillows” to support the
Turkey’s central bank did
take emergency steps last week,
increasing one of its interest
rates by three points, and gov-
ly
recent Turkish lira rout has Turkey appears extremely Yet, some business owners
damaged President Erdogan’s polarized, with 47.8% of re- said Mr. Erdogan was the saf-
polling numbers,” said Phoenix spondents to a May 18 survey est bet for financial stability.
Kalen, a strategist at Société by polling agency MetroPoll “Yes, inflation is eating into
Générale in London. saying they disapprove of Mr. my budget. But if this govern-
Some recent election polls Erdogan’s policies, compared ment loses, it will be chaos,”
have pointed to a victory of Mr. with 46.3% who approve of said Hasan Binkat, who runs a
Erdogan in the first round of them—the first time disap- textile company. “I will vote for

lira’s slide. Their eroding survived a military coup at- ernment officials have also held the presidential ballot, on June proval has surpassed approval Mr. Erdogan because I don’t
spending power is on display tempt in 2016 and has a strong meetings with foreign inves- 24, but political opponents since June 2016. Other opinion want my business to be ruined.”
al a
e

Displaced Syrians Struggle to Leave War Behind

ci on

Fleeing the Assad regime’s advances in Homs, Damascus and elsewhere, few find work in one of rebels’ last strongholds
er rs

BY RAJA ABDULRAHIM factions for a salary. widowed 43-year-old mother

Over the course of Syria’s of four, said food aid from
AZAZ, Syria—Rabea al- seven-year war, more than the local council had dried
m e

Khateeb planned to sell his 1.5 million people have been up. Her economic hopes are
rifle when he arrived here, displaced to the region—a now pinned on a single dairy
believing his days as a rebel swath that now stretches cow she received from Ihsan,
m rp

fighter were over after he through parts of northern a farm animal that saves her
left Damascus’s war-torn Aleppo province and much of and her children from work-
suburbs with his eight- Idlib province along the ing for $2 a day in the area’s
month pregnant wife. Turkish border. The numbers pistachio fields and olive
But after weeks of fruit- have picked up in recent groves. The assistance
co Fo

lessly looking for work, Mr. months as Mr. Assad cap- means “I won’t have to pull
AHMED DEEB FOR THE WALL STREET JOURNAL

Khateeb joined another tures other pockets of rebel
armed group. He doesn’t control through sieges and
know its name, or whom he bombardments with the
might end up fighting, but backing of Russia and Iran.
the job pays about $40 a Few of the new arrivals
month. here have found work in the
Mr. Khateeb is among tens cities or tent encampments
of thousands of Syrians who popping up across this agri-
have fled the Assad regime’s cultural region known for its
advances in Homs, Damascus olive groves. In and around
and elsewhere in recent the town of Azaz alone,
months, only to find eco- about 30 miles north of the
nomic desperation in one of city of Aleppo, there are an
n-
my daughter and son out of
school,” she said.
In Azaz, Mr. Khateeb had
trouble finding even low-
paying temporary work and
had to live with his extended
family in an empty store-
front with no bathroom. A
neighbor pointed him toward
a local rebel faction, one of
several Turkish-backed
groups, that was hiring.
Aid groups are trying innovative forms of help, like livestock. One woman received a dairy cow. “I didn’t want to join, but

Syria’s last opposition estimated 30,000 families I have my first child on the
strongholds. The extreme fi- living in tent camps, some are currently unemployed, sionally terrorize towns and checkpoints and taxing com- way, what else can I do?”
nancial hardship in the run by aid groups or local according to the United Na- cities. merce. Occasional battles be- said Mr. Khateeb, who spent
rebel-held northwest high- authorities, some of them in- tions, and aid workers say The area is controlled by tween the factions further years fighting the Assad re-
no

lights a challenge in ending formal. Many people are un- the figure is at least as high a wide mix of rebel factions, undermine stability. gime in his hometown in the
the violence afflicting the able to leave because of lack in the rebel-held northwest. some of whom receive back- Aid groups are trying in- Ghouta suburb outside Da-
country, as aid groups strug- of work, said Waleed Alito, a Part of the area is under ing from outside powers novative forms of help, like mascus.
gle to deliver sustainable local manager of the charity the protection of Turkey, but such as Turkey, Gulf Arab microloans or livestock. In “I go into a shop to look
help and young men with Ihsan. in other parts regime and states and even the U.S. Oth- the village of Kafra, east of for work and I find four
few prospects join armed More than 50% of Syrians Russian airstrikes still occa- ers fund themselves through Azaz, Nuria Haj Khaled, a workers already there.”

Zimbabwe Sets First Vote Since Mugabe’s Ouster U.S. Targets

BY GABRIELE STEINHAUSER by the death of its longtime
Tehran Jail,
Zimbabwe President Em-
leader Morgan Tsvangirai in
February and a divisive inter- Officials in
Sanctions
merson Mnangagwa said the nal battle over who should
country’s first national elec- succeed him.
tions since Robert Mugabe’s There are some concerns
ouster will be held on July 30, over whether the military, BY IAN TALLEY
JEKESAI NJIKIZANA/AGENCE FRANCE-PRESSE/GETTY IMAGES

posing a major test of its ef- whose power has grown since
forts to re-engage with the in- the November intervention, WASHINGTON—The U.S.
ternational community would allow the opposition to imposed sanctions on several
Mr. Mnangagwa, hoisted take over should it come first Iranian groups and officials it
into office by Zimbabwe’s in the elections. The Zimba- accused of human-rights
armed forces in November, has bwe Defense Forces backed abuses, in another round of
struggled to revive the coun- Mr. Mnangagwa’s ascension to punitive actions aimed at iso-
try’s crisis-hit economy and the presidency and senior mil- lating Iran and forcing a
assert himself as the clear itary officials have taken top change in its military posture.
leader of his ZANU-PF party. positions in his government, The Treasury Department’s
The July election adds to including as vice president targets included Ansar-e Hez-
pressure on the 75-year-old, and foreign minister. bollah, a conservative organiza-
nicknamed the Crocodile, to At a rally in the capital Ha- tion linked to the government,
deliver a strong result for his rare last week, Deputy Finance and Evin Prison, where Tehran
ruling party, while also prov- Minister Terence Mukupe sug- detains political prisoners. It
ing his democratic credentials. An election commission official checked a prospective voter’s registration in Harare on Tuesday. gested that the army would also acted against the Hanista
Previous polls in the southern keep the MDC’s Mr. Chamisa Programing Group, accusing
African country were criti- Commonwealth, which Zimba- elections are a precondition formal jobs in the private sec- from taking office. the company of creating tech-
cized by civil-rights groups bwe applied to rejoin this for a closer engagement with tor and the government has “We cannot say, honestly, nology to enable human-rights
and opposition parties over month, is also expected to send Zimbabwe, which in the final struggled to pay public-sector the army took the country, abuses by the government; two
what they said were inaccu- election monitors. years of Mr. Mugabe’s 37-year wages. practically seized the country senior government officials;
rate electoral rolls and repres- A statement in the official rule was isolated by sanctions The largest opposition from Mugabe, so that they can and the director of Islamic Re-
sion of rivals. government gazette said the and unpaid debts. party, the Movement of Demo- hand it over to Chamisa,” he public of Iran Broadcasting.
In contrast to the 2013 elec- election for a president and Zimbabwe urgently needs cratic Change, and its 40-year- told ZANU-PF supporters in The U.S. this month backed
tions, in which Mr. Mugabe and Parliament would be on July financial aid to ease an esca- old leader, Nelson Chamisa, comments caught on video. out of the 2015 nuclear deal
ZANU-PF received nearly two- 30, with a potential runoff lating shortage of dollars—the have seized on the economic The government denounced with Iran and five other world
thirds of the votes, the govern- vote scheduled for Sept. 8. country’s dominant currency crisis to score points against the statement, saying it was powers and began reconstitut-
ment has invited observers The EU and other govern- since 2009—that is suffocating Mr. Mnangagwa and ZANU-PF. unlawful and didn’t reflect ing a sanctions program aimed
from the European Union. The ments have said free and fair its economy. There are few But the MDC is also weakened government policy. at crippling Iran’s economy.
 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.
BUSINESS & FINANCE
© 2018 Dow Jones & Company. All Rights Reserved.
S&P 2724.01 À 1.27% S&P FIN À 1.94%
Tariffs Threaten Toyota’s Run
Car maker’s imports to
U.S. from Japan up 22%;
duties would weigh
on the popular RAV4
BY SEAN MCLAIN
TOKYO—Toyota Motor
Corp. said Wednesday that its
shipments from Japan to the
U.S. rose 22% in April, high-
lighting the problem it faces if
the Trump administration
makes good on threats to im-
pose higher tariffs on imports.
The problem is crystallized
in one model: the RAV4 sport-
utility vehicle. It is the most
popular Toyota among Ameri-
can consumers—and none are
made in the U.S. More than
half are imported from Japan,
while the rest are made in
Canada and imported tariff-
Wilting Sales
Romaine, the most popular
lettuce, has seen a decline that
has affected overall lettuce sales.
Lettuce’s change in retail sales
from the previous year*
-44.5% Romaine
-27.6% All
-22.8 Iceberg
-17.0 Red leaf
*Week ending
May 5
Butter 12.7
Weekly U.S. prices for
24-count cartons of romaine
$20 High
15
10 Low
5 at the box office, when the
Outbreak announced
0
April May
7 14 21 28 5 12 19 26
Sources: Nielsen (sales); Dept. of Agriculture
(prices); Photo: Michael Fiala/Reuters
THE WALL STREET JOURNAL.
E. coli Outbreak Bruises Growers, Retailers
BY JESSE NEWMAN
AND HEATHER HADDON
A deadly E. coli outbreak
tied to romaine lettuce has
shaken consumers’ faith in the
nation’s favorite salad green,
resulting in millions of dollars
in losses for growers, retailers
no
and restaurants.
More than six weeks into
the outbreak, prices for ro-
maine, historically the most-
sold salad green, have dropped
by more than half. Grocers na-
tionwide have been clearing it
Buffett Sought $3 Billion
Investment in Uber
BY GREG BENSINGER
AND NICOLE FRIEDMAN
Warren Buffett earlier this
year offered to invest $3 bil-
lion in Uber Technologies
Inc., but the two sides couldn’t
agree on the terms, according
to a person familiar with the
matter.
The talks between Mr. Buf-
fett’s Berkshire Hathaway
and Uber, reported earlier by
Bloomberg News, followed a
multibillion-dollar investment
in the ride-hailing firm by
SoftBank Group Inc.
In January, the Japanese
firm invested $1.25 billion di-
rectly in Uber at around a $70
billion valuation and bought
an additional $6.5 billion
worth of employee and inves-
tor shares at a $48 billion val-
uation.
Dara Khosrowshahi, who
became Uber’s chief executive
last summer, is trying to pre-
pare the company for a
planned initial public offering
in 2019.
The IPO, if it happens, is ex-
pected to be one of the largest
TECHNOLOGY: TESLA’S SOFTWARE UPDATE REPLACES VISIT TO MECHANIC B4
* * * * **
S&P IT À 0.72%
free under the North American
Free Trade Agreement.
Earlier this month, the
Trump administration said it
was considering a plan that
would increase tariffs on cars
and car parts, citing national
security concerns, with possi-
ble duties on automobile im-
ports of up to 25%.
Toyota stands to lose the
most among major auto mak-
ers because of its size and ex-
posure to the U.S. market.
In April, Toyota exported
66,000 cars from Japan to
the U.S., a 22% increase from
the same month a year ear-
lier. Many of them were
RAV4s, Toyota’s best-selling
entry in the increasingly pop-
ular category of crossover
SUVs that combine the space
of an SUV with fuel efficiency
rivaling sedans.
The additional space comes
on
us l,
al a
e
ci on
er rs
m e
m rp
co Fo
A crew harvests romaine lettuce in California. An E. coli outbreak has been tied to romaine grown in the region of Yuma, Ariz. Federal
officials say tainted romaine is now gone from the marketplace, but restaurants, wholesalers and grocers have suffered losses.
from shelves in hundreds of
stores. Several restaurants
that served romaine are facing
lawsuits from customers, and
wholesalers have had to
n-
quickly round up kale and
mesclun for restaurants that
struck it from their menus.
Federal health officials now
say tainted romaine is gone
from the marketplace. But for
weeks it urged consumers to
throw away any romaine let-
tuce left in their homes and to
avoid eating or buying it un-
less they were certain it
in recent memory. But Mr.
Khosrowshahi is working to
pare costs after the company
reported a loss of $4.5 billion
for last year, while repairing
Uber’s relationship with driv-
ers and riders following a year
of scandal.
Uber’s revenue is growing
quickly—up 70% in the first
quarter to $2.59 billion—and
the company has a strong cash
position thanks to previous
funding. As of March 31, it
held $6.3 billion in cash, ac-
cording to the company’s re-
cent financial statements re-
viewed by The Wall Street
Journal.
Berkshire has a history of
investing in troubled compa-
nies in exchange for favorable
terms. During the financial cri-
sis, Berkshire threw lifelines to
companies including Goldman
Sachs Group Inc. and General
Electric Co. He earned billions
on those investments.
More recently, Mr. Buffett
has struggled to find sizable
attractive buys. His company
has piled up more than $100
billion in cash.
THE WALL STREET JOURNAL.
DJ TRANS À 1.52% WSJ $ IDX g 0.59%
at only a small premium. The
RAV4 starts at $24,500 in the
U.S., compared with $23,500
for the Camry sedan.
Toyota has faced pressure
from U.S. politicians for de-
cades over its exports from
0
How many RAV4 sport-utility
vehicles Toyota makes in the U.S.
Japan, and has responded by
investing billions of dollars in
U.S. factories.
So why isn’t it building its
most popular vehicle at one of
those factories? Poor timing is
partly to blame.
The company is in the mid-
wasn’t grown in the desert re-
gion of Yuma, Ariz.
Officials have traced the
problem to Yuma, but they ha-
ven’t been able to pinpoint the
exact source of much of the
lettuce that has been tied to
172 illnesses and one death.
The U.S. Food and Drug Ad-
ministration says the last ship-
ments of romaine from Yuma
were harvested on April 16,
and the harvest season there
is over—making it unlikely
that romaine from Yuma is
still available in stores, restau-
INSIDE
GUN POLICIES
FAIL TO DERAIL
DICK’S SALES
RETAIL, B3
STOCKS RALLY
AS FEARS OVER
ITALY FADE
WEDNESDAY’S MARKETS. B11
LIBOR 3M 2.300
dle of a $10 billion U.S. invest-
ment plan that is heavily
weighted toward boosting se-
dan production. The effort in-
cludes a $1.3 billion upgrade to
its Kentucky factory to pro-
duce the latest version of the
Camry and an $800 million
plan for a new factory in Ala-
bama that will produce around
150,000 Corollas a year start-
ing in 2021.
Toyota made the plan when
the U.S. market was split 50-50
between cars and light trucks,
including SUVs. Today, pickups
and SUVs make up closer to
two-thirds of the market.
Toyota sold 407,594 RAV4s
in the U.S. in 2017, according
to Autodata Corp. That put it
behind only the flagship pick-
ups from the three Detroit
auto makers.
The Japanese company is
planning to make more RAV4s
rants or people’s homes.
“It’s [cost] thousands and
thousands of dollars; it could
even run into the millions,”
said Howard Popoola, Kroger
Co.’s vice president of corpo-
rate food technology and regu-
latory compliance, referring to
costs at the largest U.S. super-
market chain.
Growers and sellers of ro-
maine lettuce fear it could take
months or longer for sales to re-
cover. Earlier this month, sales
had dropped nearly 45% from
the year-ago period, according
STREETWISE | By James Mackintosh
Assessing Italy’s Panic, Rescue
Market re-
porting can be
prone to hy-
perbole, but
Tuesday’s Ital-
ian bond sell-
off and Wednesday’s partial
recovery was truly astonish-
ing. Short-dated bonds that
can usually be treated as a
close proxy for cash turned
toxic, and bond prices sug-
gested a full-blown panic,
then the relief of a rescue.
Prices fell, and yields on
short-dated bonds rose as
much or more than when the
euro was fighting for sur-
vival in 2011 and 2012, before
a massive reverse.
Other markets’ reaction
was muted by comparison.
Sure, stocks and the flakier
end of European government
bonds sold off, and there was
a flight to the safety of U.S.
Treasurys. But this wasn’t
much more than a run-of-
the-mill bad day, mostly re-
versed on Wednesday.
By contrast, Italian two-
year bonds had by far their
worst day since at least 1989,
NIKKEI (Midday) 22112.22 À 0.43%
close to the American market
next year. But that plan could
be problematic too, if Mr.
Trump is serious about his
threats to raise tariffs. The
current import duty on vehi-
cles from Japan is 2.5%.
Toyota is spending nearly
$1 billion to upgrade its plants
in Canada to double RAV4 pro-
duction to around 400,000 a
year. By the early 2020s, that
means the U.S. hunger for
RAVs could be met almost en-
tirely within North America—
but only if the Nafta deal al-
lowing tariff-free imports from
Canada survives the Trump
administration.
“Our production strategy
has been based on Nafta, and
that’s how we have planned the
production structure, including
deciding which models to pro-
duce at which plants,” a Toyota
Please see TOYOTA page B2
.
ly
to Nielsen figures. The outbreak
has hurt other leafy greens, with
overall lettuce sales earlier this
month down more than 27%.
U.S. lettuce production was
valued at $3.6 billion in 2017,
making it the leading vegetable
crop by value. Prices for whole
romaine heads have tumbled as
much as 60% since early April,
according to U.S. Department
of Agriculture data.
FDA Commissioner Scott
Gottlieb said technical ad-
vances are helping regulators
Please see E. COLI page B2
Here We Go Again
Italy's two-year bond yield on Tuesday
had its biggest one-day rise in decades.
Largest positive and negative one-day moves, by year
1.50 percentage points
1.25
1.00
0.75
0.50
0.25
0
–0.25
–0.50
–0.75
–1.00
1999 2001 ’03 ’05
Source: Thomson Reuters Note: Data as of Wednesday
when Thomson Reuters data
started. The yield leapt more
than 1.5 percentage points to
2.4% at the close of European
hours, with more selling later.
Wednesday saw a startling
rebound, with the two-year
Thursday, May 31, 2018 | B1
See more at WSJMarkets.com
Star Power
Blows Up
For ABC,
‘Roseanne’
BY BEN FRITZ
With “Roseanne,” Walt Dis-
ney Co.’s ABC took a risk by
reviving not just a 20-year-old
show, but a business model it
had largely abandoned, in
which a television or film se-
ries is inextricably linked to a
single celebrity.
On Tuesday, that business
model blew up.
Roseanne Barr’s racist
tweet resulted in her show be-
ing canceled almost immedi-
ately by ABC. Hundreds of cast
and crew have now lost their
jobs and the network is with-
out a big hit, one that could
have been a centerpiece of its
schedule, ad sales and public
identity for years to come.
Two months ago when
“Roseanne” returned after 11
years off the air to sensational
ratings, ABC executives
boasted that the show was
part of a new strategy to reach
working-class people who felt
underrepresented in popular
culture.
But ABC didn’t develop a
show about a struggling fam-
ily in Illinois and happen to
cast Ms. Barr. It brought back
“Roseanne,” putting its star’s
name in the title and the
words “based upon a charac-
ter created by Roseanne Barr”
in the credits.
When “Roseanne” aired
from 1988 through 1997, sit-
coms built around comics
were commonplace. There was
no “Home Improvement” with-
out Tim Allen and no “Every-
body Loves Raymond” without
Ray Romano.
It was also, not coinciden-
tally, the era of “star vehicles”
participation of Tom Cruise,
Julia Roberts or Eddie Murphy
was frequently the reason a
movie got made and the rea-
son millions of people bought
a ticket.
But star power has been on
the wane in Hollywood for
years, in no small part because
of Disney.
Under Chief Executive Rob-
ert Iger, the media conglomer-
ate is no longer home to the
biggest stars. Instead, it has
become home to the biggest
brands, some of which it
bought (Marvel, Pixar, Lucas-
film), and some of which were
homegrown (ESPN and even
Disney itself, the brand name
behind “Beauty and the Beast”
and “Frozen”).
These major franchises
have far more consumer ap-
peal than any particular per-
son who helps to make them.
The Avengers and Toy Story
will surely live on and profit
Please see TALENT page B2
Tuesday
 1.541
pct. pts.
’07 ’09 ’11 ’13 ’15 ’17
THE WALL STREET JOURNAL.
yield plunging 0.68 point for
the bonds’ best day since Eu-
ropean Central Bank Presi-
dent Mario Draghi pledged to
do “whatever it takes” to
save the euro in 2012.
Please see STREET page B10
 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.
B2 | Thursday, May 31, 2018
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
Abraaj Group.............B10
Advanced Micro Devices
.....................................B4
AK Steel Holding........A2
Allergan.......................B3
Alphabet......................B5
AvidXchange ............. B10
B International.............B5
Banca Monte dei Paschi
di Siena...................B10
Banco Comercial
Português................B10
Banco de Sabadell....B10
Berkshire Hathaway
............................... B1,B4
BNP Paribas..............B10
C L
Canadian National
Railway ..................... B3
Canadian Pacific
Railway ..................... B3
Carsey-Werner............B2
CBS............................B12
Century Aluminum.....A2
Citigroup....................B10
Comcast...............B3,B12
Costco Wholesale.......B6
D Principal Financial Group
Dick's Sporting GoodsB3
INDEX TO PEOPLE
A Gross, Bill ................... A1
Aandahl, Soren...........B6
Abbott, Greg...............A6
Akintewe, Kenneth...B11
B
Barr, Roseanne......B1,B2
Bootle, Roger............B10
Bradt, George..............B5
Buffett, Warren.....B1,B4
C Loeb, Harlan................B6
Casesa, John...............B5
Corbat, Michael.........B10
D Martin, Thomas........B11
di Galoma, Thomas...B11
F Tepper, David..............B3
Fields, Mark................B5
Fisher, Jake.................B4
G
Gilbert, Sara................B2
Gillan, Andrew..........B11
Goel, Puneet ............... B5
Goodell, Roger............A6
Goodman, John...........B2
TOYOTA
Continued from the prior page
spokesman said.
Nafta is being renegotiated
by the U.S. and the other two
members, Canada and Mexico,
and automotive trade figures
prominently in the discussions.
Mr. Trump has said he is ready
to end the agreement if it isn’t
revised to his satisfaction.
Toyota technically could
produce at least some RAV4s
in Kentucky, since the Camry
and RAV4 share a common ar-
chitecture. It isn’t likely to do
that, however, because it
would create waste, something
that is anathema to Toyota’s
production engineers. Upgrad-
ing the Kentucky plant would
result in unneeded RAV4 ca-
pacity once the Canadian ex-
pansion is finished.
“These guys, Toyota pro-
E. COLI
Continued from the prior page
better identify the origins of
food-borne illnesses, and they
are helping to keep food safer.
“Our tools and our regulatory
oversight have gotten more ef-
fective and more vigilant,” he
said in an interview.
Taylor Fresh Foods, a major
salad producer known as Tay-
lor Farms, has abandoned hun-
dreds of acres of lettuce in the
Yuma region since then, plow-
ing under ripe produce or
leaving it to rot.
“Trucks all across the coun-
try were dumping romaine,”
said Drew McDonald, vice pres-
ident of quality and food safety
at the Salinas, Calif.-based
company. “The loss of all that
product was significant for us
because of our size,” he said,
adding that the company in
April scrambled to shift pro-
duction north to its central
California farms to supply re-
tailers and restaurants.
Ratto Bros., a smaller fam-
ily farm based in Modesto, Ca-
lif., said it has lost $120,000 so
far, after having planted
enough romaine to fill an extra
20,000 cases this year. “It’s
pretty devastating,” said Frank
Ratto, the company’s vice
president of marketing.
Growers fear the current out-
break could mirror a 2006 E.
coli outbreak tied to spinach
that killed three people and
sickened more than 200. Eco-
nomic losses from that outbreak
totaled $350 million, according
to an academic estimate.
* *** THE WALL STREET JOURNAL.
BUSINESS & FINANCE
F
Facebook......................B6
Ford Motor..................B5
R
RobustWealth...........B10
S
Cancellation Eliminates a Big Cost
G Salesforce.com..........B11
BY JOE FLINT dios under $2 million per epi- like the typical agreement be- that number grew to 8.2 million,
General Electric .......... B1 Samsonite International sode for a new sitcom. ABC had tween a network and a produc- a 64% gain. That allowed ABC to
Goldman Sachs Group B1 .....................................B6 The canceled comedy to pay the producers of “Rose- tion company. That meant that charge more for commercials in
H Smithfield Foods........A2 “Roseanne” wasn’t a big mon- anne,” Carsey-Werner Co., 75% when ABC decided it wanted a that programming.
Heidrick & Struggles Social Finance...........B10 eymaker for Walt Disney Co.’s more, or $3.5 million per epi- second season, the cast and Furthermore, “Roseanne”
SoftBank Group..........B1 ABC, but was nevertheless a sode, because of the show’s Carsey-Werner had leverage to provided ABC with a strong
HP..............................B11 T crucial part of the network’s legacy and the network’s will- further raise fees, according to platform to promote shows on
I business. ingness to spend more because executives close to the show. other nights as well.
Target..........................B6
Impossible Foods......B12 “Roseanne,” starring Rose- of its need for a hit, people Carsey-Werner, which pro-
Teck Resources...........B3
anne Barr, drew a large audi- close to the show said. duced the original “Roseanne,”
J Tesla............................B4
ence, averaging about 18 million Those costs were partly in- will also be affected by losing
JPMorgan Chase.......B10 Toyota Motor..............B1
viewers per episode when it re- flated by high salaries for the
ABC had to pay the the program. The producer is
21st Century Fox.B3,B12
K turned this spring after more stars, including Ms. Barr and producers 75% more the entity that generally reaps
Kroger..........................B1 U
than two decades off the air. John Goodman, both of whom the benefits when a show’s re-
Uber Technologies.B1,B6 This season, the show took were making about $250,000
per episode than a runs become popular. After
United Parcel Service.A6
LabCorp ....................... B4
U.S. Steel Corp...........A2
in $45 million in advertising an episode, say people close to typical new sitcom. Ms. Barr’s tweet, several chan-
Legg Mason...............B10 revenue over its nine episodes, the show. Actress Sara Gilbert nels and streaming services
N V according to consulting firm also was well paid. that were carrying reruns of
Verizon Communications Kantar Media. Ms. Barr and Ms. Gilbert re- the show announced they
Nathan's Famous ....... A2
...................................B12 Next season, it was pro- ceived producing fees in addi- So if it wasn’t yet generating would pull it. However, those
National Amusements
...................................B12 Viacom.......................B12 jected to take in $58 million tion to their acting salaries, a big profit, what was valuable platforms might still be on the
Neural Analytics.........A6 W over 13 episodes, a person fa- and there were higher-than- about the show? For one thing, hook to pay fees under exist-
News Corp.................B12 miliar with the show said. normal additional costs such it had a measurable “halo effect” ing contracts for reruns, TV
Walmart.................B2,B6
P Whatever replaces “Roseanne” as marketing and promotion on other ABC programming, executives said.
Walt Disney
will likely bring in more than of the show. helping to boost viewership on Carsey-Werner principal
PayPal Holdings........B10 ...................B1,B2,B3,B12
Wells Fargo.................B6 40% less, the person said. Furthermore, when ABC Tuesdays. Before “Roseanne” re- Tom Werner declined an inter-
...................................B10 WestRock....................B4 But “Roseanne” was pricey brought “Roseanne” back, the turned, ABC’s Tuesday prime- view request. On Tuesday he
to make. Television networks original deal was for nine epi- time lineup was averaging five said he supported ABC’s deci-
typically pay production stu- sodes only, not multiple years million viewers. After its debut, sion to cancel “Roseanne.”
Rajoy, Mariano..........B12
J Ratto, Frank................B2
Redstone, Shari........B12
Jones, Jerry................A6
Redstone, Sumner....B12
K Rosenbluth, Todd........A9
Khosrowshahi, Dara Ross, Stephen.............A6
............................... B1,B6 S
King, David..................B4
Saunders, Brent..........B3
L Smith, Dan..................B5
Stack, Edward.............B3
.
Longo, Vincenzo........B10 Su, Lisa ....................... B4
ly
M Sullivan, Dave.............B4
Sutton, Dan.................B2
McDonald, Drew ......... B2 T on
McMullen, Rodney......B2 Tainwala, Ramesh ...... B6
McNair, Bob................A6
Musk, Elon..................B4 V
us l,
N Voorhees, Steven ....... B4
Nakanishi, Takaki........B2 W
al a
e
P-R Werner, Tom ............... B2
Park, Dan.....................B5 Wright, Frank ........... A11
ci on
Phegley, Richard.........B2 Z
Popoola, Howard.........B1 Zanganeh, Bijan........B11
G. RONALD LOPEZ/ZUMA PRESS
duction system people, they
er rs
are the most powerful and in-
fluential people in Toyota.
They are focusing on cutting
waste and increasing effi-
m e
ciency,” said Takaki Nakani-
shi, an auto analyst who runs
Nakanishi Research Institute A show with its star’s name in its title is hard to salvage if scandal strikes. An ad on a New York City subway car in March.
m rp
in Tokyo.
Toyota used to produce the
majority of RAV4s in North
America, but production
growth has slowed while the
TALENT rather than leasing the talent.
Disney didn’t respond to a
request for comment.
The “Roseanne” debacle il-
might have been able to stop
her.
Now a major media com-
pany like Disney has no way to
is possible the production stu-
dio behind the show could try
to launch a spinoff in the fu-
ture. But there is no “Rose-
co Fo
plants awaited upgrades. Plans Continued from the prior page lustrates another good reason control or spin what Ms. Barr anne” without Roseanne Barr,
to replace Corolla production even when Robert Downey Jr. for that approach: social me- says on her Twitter feed. It which means that, for now,
with RAV4s in Canada will and Tom Hanks are long gone dia. Celebrities have been say- can only react amid the fallout there is no more “Roseanne.”
save costs in part by simplify- from them. ing outrageous things since from a trending #BoycottABC ABC is now in a tricky spot.
ing the supplier base. As evidenced by Disney’s the dawn of newspapers and hashtag to President Donald It can’t fill nearly 20 hours a
Toyota has previously fat bottom line, that approach radio, but there was always Trump complaining that Mr. week of prime-time program-
moved to appease Mr. Trump makes sense in a high-stakes, some buffer between them and Iger apologized to Valerie Jar- ming with branded sequels
after facing criticism for in- global entertainment market the general public. If Ms. Barr rett but not to him for “the and spinoffs, as Disney’s stu-
vestments outside the U.S. The where media companies spend woke up 20 years ago with HORRIBLE statements made dio does for the dozen or so
company originally planned to hundreds of millions making something offensive to say, it and said about me on ABC.” movies it releases each year.
build a new Corolla factory in movies, producing television would have taken some time If Ms. Barr were merely the But whatever ABC puts on the
Mexico, then switched to Ala- series or building theme-park and effort to broadcast her lead actress on her program, air this fall to replace “Rose-
bama after Mr. Trump tweeted rides. With so much at stake, thoughts to the world, during “Roseanne” might go on, as anne,” the show probably
“NO WAY!” The Mexico factory better to build your business which she might have recon- “House of Cards” has done won’t have a star’s name in
n-
will make trucks instead. by owning the characters sidered or a network publicist without Kevin Spacey. And it the title.
no
[ [
MASSAGE.
JASON HENRY FOR THE WALL STREET JOURNAL
REDEFINED.
Unparalleled Japanese craftsmanship,
personalized choreography, and an unmatched
commitment to quality. Let DreamWave melt
away stress and transport you to a place of
profound relaxation and rejuvenation.
Prices for whole romaine heads have tumbled as much as 60% since early April, according to U.S. data.
“We never really got our foot- the lettuce on sandwiches fea- source of their romaine, re- dreamwave.com/redefined
ing back after that,” said Dan tured in the grocer’s boxes, com- moved it from menus or added 888-727-2150
Sutton, general manager at pany Chief Executive Rodney other salad greens.
Pismo Oceano Vegetable Ex- McMullen tasked Mr. Popoola People sickened in the out-
change, a California-based leafy- with calling and reassuring the break have filed lawsuits
greens producer. He said Pismo shopper about its safety. against several restaurants, in-
grows half the volume of spinach Retailers are eager for regu- cluding Panera Bread Co.
it did before the 2006 outbreak lators to determine the source Walmart Inc., its Sam’s Made in
because of reduced demand. It of the outbreak so they can try Club division and Taylor Japan
has abandoned one-third of its to recoup some of their costs. Farms also face a lawsuit seek-
romaine lettuce this year. Supply-chain contracts typi- ing class-action status in Cali-
Some retailers have had to cally require that retailers and fornia, accusing the retailers
hire workers to pull romaine restaurants pay for the cost of of exposing consumers to po-
from shelves, hang signs and pulling products during an out- tentially tainted romaine and
counsel shoppers about the break, unless a supplier has not pulling the produce. Wal-
safety of lettuce. “Consumer been identified and a recall ini- mart and Taylor Farms didn’t
confusion about lettuce safety tiated; some contracts require respond to requests for com-
has followed,” said Richard Phe- the supplier to reimburse dis- ment on the litigation.
gley, chief financial officer for tributors for related expenses, “Food safety is important to
West Coast-based Smart & Final according to Angela Spivey, a us,” said a statement on Pan-
Stores Inc., a grocery chain that food-and-beverage attorney at era’s website. “When something
lost sales. McGuireWoods LLP. happens, like the recent indus-
The effort has taxed rank- Supermarkets are eager to trywide issues affecting romaine
and-file workers as well as chief regain the confidence of shop- lettuce harvested in Yuma, Ari-
executives. After a Kroger meal- pers. Restaurants, meanwhile, zona, we act quickly to remove 0% financing options available to qualified buyers.
kit customer complained about have raced to determine the the risk from our cafes.”
 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.

THE WALL STREET JOURNAL. * * * * Thursday, May 31, 2018 | B3

BUSINESS NEWS

Pact Ends Brief Strike Dick’s Shares Rise by 26%

At Canadian Pacific Retailer’s new policy
BY JACQUIE MCNISH
AND PAUL VIEIRA
TORONTO—A strike that
temporarily shut down Cana-
dian Pacific Railway Ltd. op-
erations is over, as the com-
pany and the union
representing conductors and
locomotive engineers reached
a tentative four-year deal.
Details of the agreement
weren’t immediately available.
Teamsters Canada, which rep-
resents over 3,000 workers,
said operations would resume
would interfere with the oper-
ations of one of the most effi-
cient railways in North Amer-
ica by operating ratio.
A prolonged strike threat-
ened a major blow to grain,
crude-oil, forest-product and
mining producers, who experi-
enced significant shipping de-
lays over the winter months as
Canadian Pacific and rival Ca-
nadian National Railway Co.
struggled to keep up with an
unexpected surge in demand
for oil and other commodities.
Despite the potential threat
on gun purchases
hurts hunting sales,
but profit increases
BY SARA GERMANO
AND ALLISON PRANG
Dick’s Sporting Goods Inc.
posted higher quarterly profit
and sales, allaying investor
concerns about the chain’s con-
troversial decision to tighten
gun policies.
The retailer said Wednesday
that its hunting business suf-

RICHARD B. LEVINE/NEWSCOM/ZUMA PRESS

at 6 a.m. local time Thursday
across the country. Teamsters
members walked off the job at
10 p.m. EDT on Tuesday after
months of talks failed to pro-
duce a deal.
Canadian Pacific Chief Ex-
ecutive Keith Creel hailed the
tentative pact with the
A prolonged walkout
would have threatened
producers of oil and
other commodities.
roughly 12,000 employees of
the Calgary, Alberta-based
railroad. “This is a significant
step toward a renewed posi-
to the economy, Canada’s Lib-
eral government said it
wanted the company and
union to negotiate a settle-
ment and wouldn’t immedi-
ately introduce legislation to
compel railway workers to re-
turn to work.
Back-to-work legislation
was a frequent tactic used by
the former Conservative gov-
ernment under Prime Minister
Stephen Harper whenever a la-
bor dispute disrupted activi-
ties at federally regulated
companies.
“This is further evidence
that when employers, orga-
nized labor, and governments
work together and respect the
collective bargaining process,
we get the best results for Ca-
nadians and for our economy,”
Patty Hajdu, Canada’s labor
fered during its fiscal first
quarter, but it reported better
demand for other items, which
helped profit margins.
Dick’s shares rose 26% to
$38.35 Wednesday, marking
their biggest daily gain based
on available data going back to
2002.
Chief Executive Edward
Stack noted in March that the
new gun restrictions had hurt The sporting-goods chain raised its minimum firearms purchase age to 21 in February.
traffic and sales, as customers
unhappy with the moves said control advocacy group.
they would shop elsewhere. Rising Above Controversy Earlier this month, Dick’s
Same-store sales for the quar- Shares in Dick’s Sporting Goods jumped Wednesday as profit rose in the was expelled from membership
ter, which ended May 5, de- quarter following the change in its gun-sales policy. in the National Shooting Sports
clined 2.5% from a year earlier; Foundation due to “conduct
analysts polled by Consensus Share price Profit, in millions detrimental to the best inter-
Wednesday 1Q 2018
Metrix were expecting a 1.4% $38 $120 million $60.1 million ests” of the firearms trade as-
$38.35
decline. ▲26% sociation.
Dick’s finance chief Lee Be- 36 100 Mr. Stack said Wednesday
litsky said in reference to hunt- that the organization’s primary
ing sales that the chain’s gun 34 activity is running “The Shot

.
80
tive relationship growing for- minister, said following news policy prompted “an acceler- Show,” a trade show for weap-

ward together serving our cus-
tomers and the Canadian
economy,” he said.
Teamsters Canada Presi-
dent Doug Finnson said what
the parties agreed to “is a fair
contract that our members can
feel good about ratifying.”
of the Teamsters agreement.
Canadian Pacific is a lead-
ing shipper of grain in West-
ern Canada and the U.S.
Northern Plains, moving
432,000 grain carloads in
2017. The railroad is also a
major shipper of crude oil and
us l,
ly
ated decline in an already chal- 32 ons and firearms. “We don’t go
lenged category.” 60 to the Shot Show now. It’s re-
Profit rose 3.2% from the 30 ally not that big of a deal,” Mr.
Feb. 28
onyear-earlier quarter to $60.1 Announced new age 40 Stack said.
million, or 59 cents a share, 28 He added that Dick’s doesn’t
restrictions on gun
topping Wall Street expecta- sales and bans on “have the best relationship
26 20
tions and leading the company some firearms with the firearms manufactur-
to raise its full-year outlook. and accessories ers right now” and expects its

Late Tuesday, the railroad
reached a tentative three-year
contract with another union
representing nearly 400 elec-
trical workers.
fracking sand in Western Can-
ada and the Bakken region in
al a
e
North Dakota.
One of its largest customers
is Teck Resources Ltd., which
ci on
Dick’s said it relied on fewer
promotions to move merchan-
dise and was able to reduce its
inventories.
Total sales rose 4.6% to $1.91
24 0 hunt and firearms category to
Jan. Feb. March April May FY 2016 ’17 ’18 be challenged for the rest of
Sources: the company (profits); FactSet (shares) THE WALL STREET JOURNAL. the year.
On Tuesday, analysts at
nounced his company was rais- stocks from all of its stores. Canaccord Genuity lowered

Before Tuesday’s walkout,
Canadian Pacific had been
winding down its railcar deliv-
eries in recent days to prepare
for the strike.
transports most of the metal-
lurgical coal it mines in Can-
ada on the railroad.
“Any stoppage of rail ser-
vice would be negative for the
er rs
billion, helped by the addition
of new stores and converted
outlets of Sports Authority,
which filed for bankruptcy.
Dick’s operates more than 800
ing the minimum firearms pur-
chase age to 21 and would no
longer sell assault-style rifles
at its Field & Stream stores.
They weren’t sold at flagship
In an interview in April, the
retailer’s longtime CEO said he
believed the private sector can
take a role in effecting change
in the U.S. gun-control debate.
their sales and earnings esti-
mates for Dick’s, citing weak-
ness in the hunting category as
well as slowing demand for
athletic apparel and certain

Mr. Creel said in April the economy as a whole, including stores, including Golf Galaxy Dick’s locations. The retailer He has been lobbying members sports categories. Fall is typi-
railway wouldn’t be “taken our business,” a company and Field & Stream locations. also banned high-capacity mag- of Congress and met with Ev- cally the busiest season for the
hostage” by demands that spokesman said. In February, Mr. Stack an- azines and so-called bump erytown for Gun Safety, a gun- hunting business.
m e

Allergan Aims to Sell Two Units

m rp

BY JONATHAN D. ROCKOFF tox, eye care, gastrointestinal amid Wall Street concerns
medicines and drugs for cen- about the direction of the
Allergan PLC is exploring tral-nervous-system disorders, company. Investors have asked
co Fo

the sale of two relatively small
businesses, in a bid to jolt sag-
ging shares and ease the
minds of worried investors.
Allergan Chief Executive
Brent Saunders told investors
Wednesday that the company
has begun a process to sell its
women’s-health and infec-
tious-disease businesses.
“The key for us strategically
is to really focus on the four”
therapeutic areas of medical-
aesthetic products such as Bo-
Mr. Saunders said at an Alli-
ance Bernstein event in New
York City.
The women’s-health busi-
ness, which sells birth-control
and other pills, contributed
about $1 billion of the Dublin-
based company’s $15.9 billion
in sales last year, while the
company’s anti-infective drugs
rang up sales of $257 million.
Allergan’s board of direc-
tors launched a review of com-
pany strategy earlier this year
n-
about Allergan’s plans for
dealing with potential new ri-
vals to its top-selling product
Botox, and the looming ge-
neric competition for its No. 2-
selling drug Restasis.
Shares in Allergan have lost
more than half their value
since peaking in July 2015 and
have fallen about 13% this
TO TA L
year. They edged up 49 cents $ 84
VA LU E
.9 0
to $151.52 on Wednesday.
The stock performance has
drawn notice from activist in-

vestor David Tepper, whose

Appaloosa Management raised
its stake in Allergan in 2016.
The move to divest from
no

women’s health and infectious

disease, reported earlier by
CNBC, might mollify investors
who have been calling for the
company to improve stock
performance, while stopping
short of heeding their calls to 10 (5 oz) Top Sirloin
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PATRICK T. FALLON/BLOOMBERG NEWS

other 400 open positions to

cut costs this year.
Mr. Saunders said Allergan
will use proceeds from any P U R C H A S E

10 top sirloin
sales to reduce debt and buy
back shares, though he cau-
tioned that the company
wouldn’t agree to sales unless
they command good values.

The company, which makes Botox, is reacting to investor concerns.

Fox Sets July Date for Vote on Asset Sale
BY AUSTEN HUFFORD
21st Century Fox Inc.
shareholders will vote July 10
on the company’s proposed as-
set sale to Walt Disney Co.,
potentially giving Comcast
Corp. six weeks to submit its
own bid for the film studios,
cable networks and other en-
tertainment businesses.
Disney has also called a
special meeting July 10 for
shareholders to approve issu-
ing equity in connection with
the $52.4 billion all-stock pur-
chase.
Comcast said last week that
it was in advanced stages of
preparing a cash offer that
would top Disney’s deal for
Fox’s entertainment businesses.
On Wednesday, Fox said it
could postpone the meeting if
Comcast submits a bid or if
other events require the com-
pany to send shareholders in-
formation they need addi-
tional time to review.
The Fox assets for sale
range from international pay-
television distribution to cable
networks and a stake in
streaming company Hulu.
They are some of the most-
prized entertainment proper-
ties likely to come on the mar-
ket for some time, and the
Murdoch family’s willingness
to sell the assets came as a
“There is no fire sale at Aller-
gan,” he said. $49.99
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 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.
B4 | Thursday, May 31, 2018
New Math: Firms Repair CEO Pay Flubs
BY THEO FRANCIS
When Laboratory Corp. of
America disclosed pay for its
chief executive in March, the
company said he made $1.5
million in 2016. A week later,
the diagnostic-lab chain filed a
new document listing his pay
at $10.9 million.
Chief Executive David King
didn’t get a retroactive raise.
His employer just proofread
its work.
Such a big discrepancy is
unusual, but LabCorp isn’t the
only big company to make sig-
nificant adjustments to past
pay disclosures. At least 16
companies in the S&P 500
have changed 2016 pay figures
by more than 10% for one or
more executives, while 17 did
so for 2015 pay, a Wall Street
Tesla Brakes Better
With Wireless Fix
BY TIM HIGGINS
Tesla Inc. was able to im-
prove the braking distance of
Model 3 cars by as much as 20
feet by wirelessly transmitting
a software update to the vehi-
cles—a significant achieve-
ment in the auto industry that
shows how the company can
boost performance without
costly dealership repairs.
The improvement per-
suaded Consumer Reports on
Wednesday to recommend the
Model 3 vehicle, reversing last
week’s decision to withhold its
influential endorsement partly
because it deemed the car
took too long to stop. The
Consumer Reports seal of ap-
proval is sought after by the
auto industry.
The Silicon Valley electric-
car maker’s ability to change
basic functions of the car
through software updates via
Wi-Fi or cellular signals puts
it at the cutting edge of car
development. Tesla has previ-
ously sent wireless updates to
improve the driver-assistance
system called Autopilot or to
BUSINESS OPPORTUNITIES
  
Journal analysis of data from
MyLogIQ LLC shows.
Many changes, like Lab-
Corp’s, are errors caught after
companies send proxies to
shareholders and the Securi-
ties and Exchange Commis-
sion. Others can reflect
changes in how the company
decides to present the perks it
has provided. In at least one
case, a revised figure was the
result of a retroactive pay cut.
A spokeswoman for Lab-
Corp said pay totals for other
of its executives were mistak-
enly listed as prior-year fig-
ures for Mr. King, but that
each component of Mr. King’s
pay was disclosed correctly
and the accurate total had
been shown the prior year.
Chip maker Advanced Mi-
cro Devices Inc. blamed a con-
give a car greater acceleration.
This latest change comes at
the same time Tesla is battling
criticism of its newest vehicle.
“I’ve been at [Consumer Re-
ports] for 19 years and tested
more than 1,000 cars and I’ve
never seen a car that could
improve its track performance
with an over-the-air update,”
Jake Fisher, director of auto
testing, said in Wednes-
day’s review.
The automotive industry
has spent generations and for-
tunes requiring owners to
bring vehicles to their service
us l,
centers to make fixes. Last
week, Fiat Chrysler Automo-
al a
e
biles NV recalled over five mil-
lion vehicles in the U.S. and
Canada to fix a software glitch
ci on
that could prevent drivers
from canceling cruise control.
“Tesla has broken through a
massive barrier that has
haunted the auto industry
er rs
since 1978” when the first mi-
croprocessor was introduced
in cars, said Dave Sullivan, an
analyst for AutoPacific. “The
m e
ability to program modules
over the air, such as the [an-
m rp
co Fo
TECHNOLOGY
sultant when it had to say in
last year’s proxy that CEO Lisa
Su had received stock awards
valued at $4.4 million in 2015,
not the $3.6 million originally
disclosed.
“Due to an inadvertent er-
ror, our outside professional
valuation consultant underval-
ued the accounting values” of
the performance-based re-
stricted stock units awarded
during fiscal 2015, the com-
pany said in the proxy it filed
in March 2017.
AMD declined to elaborate
beyond the company’s securi-
ties disclosures.
On occasion, revised disclo-
sures reflect actual, retroac-
tive pay alterations. WestRock
Co., a paper and packaging
company based in Atlanta,
originally reported paying CEO
on
JASON LEE/REUTERS
A Tesla Model 3 on display in Beijing in April. The company deployed a wireless update to improve the electric cars' braking distance.
tilock-braking] module, repre-
sents a huge leap in keeping
customers safe and reducing
the number of unrepaired ve-
hicles on the road.”
Other auto makers, includ-
ing General Motors Co., are
rushing to develop similar
over-the-air technology.
The lack of a recommenda-
tion from Consumer Reports
would have threatened Tesla
ADVERTISEMENT
The Marketplace
To advertise: 800-366-3975 or WSJ.com/classifieds
BANKRUPTCIES
Steven Voorhees $5.6 million
in stock awards in 2015.
WestRock’s December 2017
proxy, however, showed he re-
ceived just $2.8 million in stock
Many changes are
errors caught after
shareholders and the
SEC received proxies.
awards that year. The reason:
The original stock grant ex-
ceeded the amount allowed un-
der the company’s program.
The reduction was first dis-
closed in a separate filing in
September, which said that
Mr. Voorhees returned more
Chief Executive Elon Musk’s
effort to bring electric cars to
more mainstream customers.
Tesla is struggling to ramp up
production of the Model 3
while also facing questions
about the safety of Autopilot
after a few recent crashes in-
volved the driver-assistance
system. Tesla says Autopilot
makes its vehicles safer than
those without it.
THE WALL STREET JOURNAL.
than 20,000 shares, gave up
more than 50,000 unvested
shares and repaid nearly
$25,000 in dividends.
A spokesman said the com-
pany had concluded the over-
all value of Mr. Voorhees’s
original pay had been appro-
priate. In February WestRock’s
board granted Mr. Voorhees a
further 96,092 shares, today
valued at $5.8 million, “to ful-
fill its original intentions.”
Then there is Berkshire
Hathaway Inc. The holding
company said this year CEO
Warren Buffett made $100,000
in each of 2016 and 2015, not
$487,881 and $470,244 as
originally reported.
The company said it had re-
classified the cost of “personal
and home security services”
for Mr. Buffett as a business
.
ly
Consumer Reports’ original
review on May 21 raised new
safety questions. The non-
profit organization said at the
time that the Model 3 it pur-
chased had a stopping dis-
tance of 152 feet from 60 miles
an hour, “far worse than any
contemporary car” and further
than a full-size pickup.
In response, Mr. Musk
promised last week on Twitter
PUBLIC NOTICES
WSJ.com/Tech
expense, rather than as pay.
Berkshire described the
$375,000 it spent on protect-
ing Mr. Buffett this year as a
business expense because he
often works at home. The end
result: Berkshire this year said
Mr. Buffett made $100,000 in
each of the past three years.
Other large companies do
count CEO-security costs as
compensation.
Berkshire Hathaway and
Mr. Buffett didn’t respond to
requests for comment.
In its March 16 proxy, Berk-
shire Hathaway wrote that the
company's board believes that
because “Mr. Buffett spends a
significant amount of his time
while at home on Berkshire
business matters that such
costs represent bona fide busi-
ness expenses.”
to make improvements to the
brakes. On Saturday, he said,
the software update had begun
rolling out, saying it should
improve braking distance by
about 20 feet during repeated
heavy braking events. The
software update changed the
calibration of the antilock-
braking algorithm across vari-
ations in usage and environ-
mental conditions, Tesla said.
     
 



    
    

  
 
   
 
  
  

      
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THE WALL STREET JOURNAL. Thursday, May 31, 2018 | B5

MANAGEMENT

Rosy Promises About Jobs Often Fall Short

Shattered expectations in a new gig can be an issue for executives who must decide whether to adapt or leave
BY JOANN S. LUBLIN The female executive feels
bamboozled and remains anx-
A new job—even with a ious in her job because her
posh title and lavish pay— assignment offers less visibil-
can sometimes fall short of ity, prestige and professional
expectations. growth than she was expect-
It is a persistent problem ing, Ms. Smith says. She in-
for job-hopping executives, tends to keep pursuing a role
aggravated by today’s hot with the division she origi-
job market. Companies nally interviewed for.
sometimes woo stars with New jobs can also fail to
pledges of powerful manage- meet expectations when an
ment assignments that don’t employer’s true financial
match reality. state doesn’t become clear
“I see em- until a new hire gets in the
YOUR ployers trying door.
EXECUTIVE to win people

S
CAREER over by exag- uch developments occa-
gerating a sionally transform an
job’s impor- executive’s career—and
tance or not disclosing its not always to the detriment.
challenges,’’ says Dan Smith, Dan Park relocated in Sep-
chief operating officer of tember from Seattle, where
Raines International Inc., an he had been an Amazon.com
executive-recruitment firm. Inc. general manager, to Van-
Should such fresh hires couver, British Columbia, in
adapt or flee? It all depends. order to handle operations
Consider John Casesa, a for BuildDirect, a Canadian
longtime investment banker startup. He became the first
and auto analyst recruited chief operating officer at the
by Ford Motor Co. in 2015 online marketplace for home-
to steer its investments into improvement products.

JAMES O’BRIEN
new products and technolo- Mr. Park says he knew “the
gies. company had ups and downs
Mr. Casesa soon discov- operationally.’’ But he was
ered he had less freedom soon surprised to discover
than he anticipated to carry BuildDirect had failed to
out his mandate, based on sulting firm that specializes wishes he had done greater Goel explains. “I just couldn’t crucial details, including who close its latest financing
his belated perception that in integrating new hires. due diligence a few years be successful in that way.’’ their new supervisor will be. round and owed creditors

.
then-Chief Executive Mark “Choosing to stay without ago before taking charge of According to Mr. Goel, the Yet advanced planning several million dollars.

ly
Fields didn’t have the full adjusting is an almost sure- product management at a CEO defended his approach isn’t always enough. A senior Directors replaced their
buy-in of the auto maker’s fire way to ensure you’re midsize tech company. He by telling him, “‘This is the manager with digital-market- chief executive with Mr. Park
board, according to a person among the 40% of executives never reached out to his im- way I have always done it ing expertise who was an ex- six weeks following the debut
familiar with the matter. who fail in their first 18 onmediate predecessor, who no and this is how we are going ecutive client of Ms. Smith’s of the novice COO. The next
As new global strategy months in a new role,’’ he longer worked there. to do things here.’’’ insisted on written commit- day, board members sought
chief, Mr. Casesa hoped says, citing research from re- Concluding “there are no ments before she accepted a to recapitalize BuildDirect

H
things would improve. But in cruiters Heidrick & Strug- e says the firm’s CEO good options here,’’ Mr. Goel higher-paid post at a global under a Canadian law that al-
May 2017, Ford directors gles International Inc. and founder asked Mr. resigned after seven months. consumer-products company lows struggling businesses to
us l,

forced out Mr. Fields, and Executives disappointed
Mr. Casesa ultimately con- by a previous gig have often
al a
e
cluded he “couldn’t make the failed to probe deeply about
contribution [he] was capa- their new employer, leader-
ble of making,’’ the person ship coaches say. Their ex-
ci on
Goel to draw up a
road map for a more compet-
itive version of its software—
and promised him autonomy
to devise product strategy.
He is now a product manager
for Google, an Alphabet Inc.
unit.
To avoid mismatched ex-
pectations, potential recruits
in 2017.
The woman learned she
would work for the influen-
tial head of an innovative
division—a commitment her
restructure their finances.
“I immediately felt like I
was standing at the top of a
black-diamond ski run, look-
ing at how are we going to

says. He quit a few months pectations get dashed in a
later. number of ways, including
“This type of experience their scope of authority,
happens more often nowa- staffing levels, the business’s
days because business is financial health or even the
er rs
But once Mr. Goel joined, the
company chief promised po-
tential customers product ca-
pabilities that didn’t exist
and weren’t part of his new
should request a detailed job
description specific to the
role at the time, says Stefanie
Smith, a management consul-
tant and executive coach.
offer letter confirmed, ac- get down,” Mr. Park says.
cording to Ms. Smith. The firm exited from the
Weeks after she arrived, law’s protection in March.
however, the new boss Now, “BuildDirect is in the
transferred her to a more best financial shape in its

changing so fast,’’ says size of their office. road map. Ms. Smith also recom- traditional division led by a history,’’ Mr. Park says. “This
George Bradt, a co-founder Technology industry vet- “He wanted to do what I mends candidates make sure deputy. He didn’t explain has been a pivotal experi-
of PrimeGenesis LLC, a con- eran Puneet Goel says he thought was my job,’’ Mr. their offer letter spells out why. ence for my career.’’
m e
m rp
co Fo

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n-

New
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Episode
GENETICALLY MODIFIED VEGGIES

Vegetables engineered with gene-editing

technology are moving closer to supermarket
shelves. Will these genetically altered foods
carry labels to alert consumers or is this just
a way to speed up evolution?
© 2018 Dow Jones & Co., Inc. All rights reserved. 6DJ6254

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B6 | Thursday, May 31, 2018 * * THE WALL STREET JOURNAL.

BUSINESS NEWS

Walmart to Help Workers Pay Tuition

Subsidy for online
college instruction is
part of effort to keep
staff in tight market
BY SARAH NASSAUER
Walmart Inc. will subsidize
ment and business, perhaps worked with the schools to Few big retail chains offer a
adding other degrees in the fu- lower acceptance requirements. similar education perk, though
ture. This is not the first time several restaurant companies
“A lot of employers that Walmart has offered a college offer tuition assistance.
have done this have seen an tuition perk to its U.S. workers. In March, McDonald’s said it
uptick in their application In 2010, it reached a deal with would increase its tuition bene-
flow,” Drew Holler, vice presi- American Public Education Inc. fit, giving employees up to
dent of associate experience for to provide discounted online $2,500 a year, with managers
Walmart, said at a company classes at the for-profit Ameri- getting $3,000 annually. The
presentation Wednesday. “At can Public University. Walmart company also lowered the eligi-

TIMOTHY FADEK/BLOOMBERG NEWS

online college tuition at three
schools for its U.S. workers as
the country’s largest private
employer looks to attract and
retain talent in a tight labor
market.
The retail giant, which has
more than 1.5 million employ-
ees in the U.S., said Wednesday
it would cover the cost of col-
lege tuition and other fees for
part-time and full-time work-
ers, after factoring in other fi-
nancial aid and a $1 daily em-
ployee contribution. Walmart
will initially offer to pay for de-
grees in supply-chain manage-
the end of the day it’s going to
increase our associate base”
and increase retention, he said.
Unemployment in the U.S.
has fallen to some of the lowest
levels since the end of World
War II, forcing Walmart and
other large employers to com-
pete for talent in an industry
with high turnover. The jobless
rate fell to 3.9% in April, the
lowest level since December
2000, the Labor Department
reported.
Walmart said its workers
will be able to enroll in online
courses offered by the Univer-
said Wednesday it would phase
out that program over the next
year.
The company has been rais-
ing wages and benefits in re-
cent years as it competes for
unskilled workers with restau-
rant chains like McDonald’s
Corp., as well as other big re-
The retailer has designated three schools for the program. tailers. It has lifted its starting
hourly wage to $11—prompting
sity of Florida, Brandman Uni- Walmart declined to disclose others, including Target Corp.
versity and Bellevue University the cost of the program. and Costco Wholesale Corp.,
in partnership with Guild Edu- The company said it selected to lift their minimum wages
cation, a firm that partners the three nonprofit schools above that level—and increased
with companies to offer educa- based on their programs for parental-leave benefits for
tion to workers. adult students. It said it also store workers.
bility requirements to 90 days
of employment and weekly
shifts of at least 15 hours.
McDonald’s said its program
would cost about $150 million
over five years.
In 2015, Starbucks said it
would cover the full cost for
employees that work an aver-
age of at least 20 hours a week
to get a degree online through
Arizona State University. At the
time, the company said it ex-
pected to spend up to $250
million to help at least 25,000
employees graduate from col-
lege by 2025.

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Decrease background A study by the National Institute saying “I’m sorry” has become “We live in an age of rage,
noise and choose the on Aging suggests older individuals a more expensive endeavor. and companies are now com-
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hearing loss. & Co., Facebook Inc. and Uber gize,” said Harlan Loeb, global
more likely to develop Alzheimer’s
co Fo

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and dementia over time than those ing millions of dollars on ad- which advises Wells Fargo on
sold for thousands of dollars and today can be pur- vertising campaigns to apolo- corporate reputation.
chased for less), the cost of a digital medical-grade who retain their hearing. They suggest that an in- gize for a range of corporate Wells Fargo has spent $21.5
hearing aid remains out of reach. tervention — such as a hearing aid — could delay missteps and to win back con- million on its “Earn Back Your
sumers’ trust. The pitches Trust” TV ad since it began
The doctor knew that many of his patients would or prevent this by improving hearing! blanketing media channels in airing May 5, according to es-
benefit but couldn’t afford the expense for these new recent weeks show how the timates from ad research firm
Try It Yourself at Home latest wave of atonement iSpot. “The cost of a crisis
digital hearing aids. Generally they are not covered tours has become more so- campaign can now be up to 20
by Medicare and most private health insurance
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multiple forums to express Facebook’s ad campaign,
hearing aids on the market, broke them down to their you to try it for yourself with our RISK-FREE their dissatisfaction with a which started in April and is
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FEATURES Hearing Aid Clinic
sies including bank employees’ Uber, which has suffered a
FDA-Registered Hearing Aid Yes Yes opening accounts without cus- series of scandals, including
tomers’ knowledge, is airing a accusations of sexual harass-
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lost consumers’ trust and avoids mentioning any of the
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Appointments Needed None 3-4 Many of the apology cam- lems. It features Uber’s new
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Attack on Samsonite
BY STEVEN RUSSOLILLO
“I am hearing things I didn’t know I was missing. Really amazing. HONG KONG—A U.S.-based
I’m wearing them all the time.” short seller bolstered his calls
— Linda I., Indiana for Samsonite International
SA’s chief executive to be fired
“Almost work too well. I am a teacher and hearing much better for résumé fabrication, saying
boardrooms “are littered with
now.” — Lillian B., California carcasses of executives who
told far more minor lies on
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hearing loss.” Speaking at a conference on
Wednesday, Soren Aandahl,
— Amy S., Audiologist, Indiana founder of a new activist in-
vestment fund called Blue Orca
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filings with the U.S. Securities
and Exchange Commission more
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some regulatory documents in
India. It also was included in
press reports. Mr. Aandahl said
he found at least 73 biographi-
cal references that labeled Mr.
Tainwala as a doctor.
Mr. Tainwala never earned a

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Journal last week after Blue
Orca’s report was published
that he “never claimed” to
hold such a degree. Samsonite
didn’t have an immediate com-
ment on Mr. Aandahl’s speech.
 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.

THE WALL STREET JOURNAL. Thursday, May 31, 2018 | B7

MARKETS DIGEST
EQUITIES

Dow Jones Industrial Average S&P 500 Index Nasdaq Composite Index
Last Year ago Last Year ago Last Year ago
24667.78 s 306.33, or 1.26% Trailing P/E ratio 24.26 20.44 2724.01 s 34.15, or 1.27% Trailing P/E ratio * 24.40 23.94 7462.45 s 65.86, or 0.89% Trailing P/E ratio * 25.15 26.75
High, low, open and close for each P/E estimate * 16.31 17.85 High, low, open and close for each P/E estimate * 17.13 19.15 High, low, open and close for each P/E estimate * 20.38 21.09
trading day of the past three months. Dividend yield 2.19 2.38 trading day of the past three months. Dividend yield 1.91 1.95 trading day of the past three months. Dividend yield 0.99 1.10
All-time high 26616.71, 01/26/18 All-time high 2872.87, 01/26/18 All-time high: 7588.32, 03/12/18

Current divisor 0.14523396877348 Session high

26800 2800 7500
DOWN UP
t

Session open Close

65-day moving average
Close Open 26000 2750 7300
t

65-day moving average

Session low
25200 2700 7100

24400 2650 6900

65-day moving average

23600 2600 6700

6500
22800 2550

Bars measure the point change from session's open

6300
22000 2500
Feb. Mar. Apr. May
Feb. Mar. Apr. May Feb. Mar. Apr. May
*Weekly P/E data based on as-reported earnings from Birinyi Associates Inc.

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

Latest 52-Week % chg Most-active and biggest movers among NYSE, NYSE Arca, NYSE Amer. Volume, Advancers, Decliners
High Low Close Net chg % chg High Low % chg YTD 3-yr. ann. and Nasdaq issues from 4 p.m. to 6:30 p.m. ET as reported by electronic NYSE NYSE Amer.
Dow Jones trading services, securities dealers and regional exchanges. Minimum Total volume* 852,567,333 11,606,067
Industrial Average 24714.48 24459.09 24667.78 306.33 1.26 26616.71 21008.65 17.4 -0.2 11.1 share price of $2 and minimum after-hours volume of 50,000 shares. Adv. volume* 735,475,688 8,891,555
Transportation Avg 10966.79 10770.95 10918.72 163.39 1.52 11373.38 9021.12 19.1 2.9 9.6 Most-active issues in late trading Decl. volume* 99,141,187 1,901,243
Utility Average 696.37 686.92 694.67 4.60 0.67 774.47 647.90 -4.4 -4.0 5.8 Volume After Hours Issues traded 3,074 329
Company Symbol (000) Last Net chg % chg High Low Advances 2,411 163
Total Stock Market 28423.75 28143.32 28365.78 358.55 1.28 29630.47 24933.08 13.8 2.5 8.8
Wyndham Worldwide WYN 11,150.8 110.82 … unch. 111.11 110.82 Declines 570 145
Barron's 400 746.70 738.76 744.94 9.95 1.35 757.37 629.56 17.2 4.8 9.3
SPDR S&P 500 SPY 6,665.4 272.32 -0.29 -0.11 272.79 269.15 Unchanged 93 21
Nasdaq Stock Market Bank of America BAC 6,428.9 29.45 -0.04 -0.14 29.55 29.42 New highs 156 8
Nasdaq Composite 7473.81 7423.67 7462.45 65.86 0.89 7588.32 6089.46 20.4 8.1 13.8 Energ Gerais-Cemig ADR CIG 5,607.1 2.04 … unch. 2.06 2.03 New lows 40 2
6987.63 6938.02 49.82 7131.12 5596.96 9.1 Closing tick 277 97
Nasdaq 100 6976.37 0.72 20.5 15.7 Abiomed ABMD 5,101.6 388.57 … unch. 389.45 387.15
Closing Arms† 0.61 0.24
iShares iBoxx $ HY Cp Bd HYG 4,000.4 85.46 … unch. 85.49 85.46
S&P Block trades* 6,640 118
VanEck Vectors Jr Gold GDXJ 3,752.2 33.05 -0.04 -0.12 33.23 33.04

.
500 Index 2729.34 2702.43 2724.01 34.15 1.27 2872.87 2409.75 12.9 1.9 8.9 Nasdaq NYSE Arca
PPL Corp PPL 2,460.1 27.34 … unch. 27.34 27.26
1973.93 1948.21 28.72 1.48 1995.23 1691.67 3.5

ly
MidCap 400 1967.96 14.3 8.9 Total volume*2,013,137,572 258,204,236
SmallCap 600 1020.54 1007.98 1018.46 14.29 1.42 1018.46 817.25 22.4 8.8 12.6 Percentage gainers… Adv. volume*1,299,137,163 224,722,054
Decl. volume* 685,846,441 33,298,469
Other Indexes Tilly's TLYS 166.7 13.95 1.74 14.25 14.67 12.21
Issues traded 3,094 1,320
NGL Energy Partners NGL 66.0 11.90 1.20 11.21 12.50 10.70
Russell 2000
NYSE Composite
Value Line
1651.11

570.74
1624.03

562.46
1647.99
12647.92 12514.33 12625.87 183.18
569.59
24.34

7.13
on
1.50
1.47
1.27
1647.99

589.69
1356.90
13637.02 11598.03
503.24
20.3
8.9
10.4
7.3
-1.4
1.3
9.8
4.5
3.8
AK Steel
Keysight Technologies KEYS
AKS 610.7
235.1
4.81
55.50
0.23
2.51
5.02
4.74
4.85
55.80
4.57
52.00
Advances
Declines
Unchanged
2,005
941
148
1,030
280
10
NYSE Arca Biotech 4760.34 4681.88 4749.62 86.43 1.85 4939.86 3541.42 34.1 12.5 4.6
US Steel X 395.7 37.78 1.53 4.22 38.15 36.25 New highs 211 58
us l,

New lows 38 14
NYSE Arca Pharma 530.29 524.06 528.89 8.28 1.59 593.12 514.66 0.9 -2.9 -3.5 ...And losers
Closing tick 309 50
KBW Bank 106.93 105.33 106.59 1.94 1.85 116.52 88.87 19.9 -0.1 12.2 CRISPR Therapeutics CRSP 533.8 61.83 -11.76 -15.98 73.77 55.00 1.12 0.67
al a

Closing Arms†
e
PHLX§ Gold/Silver 84.20 83.30 83.85 0.79 0.96 93.26 76.42 0.6 -1.7 6.4 Box Cl A BOX 1,144.1 26.50 -1.28 -4.61 27.80 25.64 Block trades* 8,331 1,470
PHLX§ Oil Service 160.81 156.82 159.75 4.05 2.60 170.18 117.79 15.2 6.8 -8.6 Public Service Enterprise PEG 223.0 50.74 -1.95 -3.70 52.69 50.74 * Primary market NYSE, NYSE American NYSE Arca only.
ci on

PHLX§ Semiconductor 1399.78 1383.03 1389.91 9.00 0.65 1445.90 1020.51 27.3 10.9 23.1 AbbVie ABBV 624.8 100.50 -2.51 -2.44 103.75 100.50 †(TRIN) A comparison of the number of advancing and declining
16.64 14.65 -2.08 -12.22 37.32 9.14 35.3 issues with the volume of shares rising and falling. An
Cboe Volatility 14.94 43.5 2.6 Intelsat I 1,030.9 15.83 -0.24 -1.49 16.15 15.81 Arms of less than 1 indicates buying demand; above 1

Nasdaq PHLX Sources: SIX Financial Information; WSJ Market Data Group indicates selling pressure.

International Stock Indexes Percentage Gainers... Percentage Losers

er rs

Latest YTD
Region/Country Index Close Net chg % chg % chg Latest Session 52-Week Latest Session 52-Week
Company Symbol Close Net chg % chg High Low % chg Company Symbol Close Net chg % chg High Low % chg
World The Global Dow 3010.43 13.19 0.44 –2.5 Aslan Pharmaceuticals ADR ASLN 9.21 2.36 34.45 9.51 5.08 ... Daktronics DAKT 8.19 -1.87 -18.56 10.86 7.85 -17.6
0.56
m e

DJ Global Index 395.30 2.20 –0.5 Dick's Sporting Goods DKS 38.35 7.87 25.82 42.22 23.88 -6.8 Chico's FAS CHS 8.17 -1.82 -18.22 10.90 6.96 -13.6
DJ Global ex U.S. 258.38 –0.45 –0.17 –3.1 TapImmune TPIV 5.09 0.99 24.15 5.20 2.58 30.5 Acorn International ADR ATV 30.94 -6.76 -17.93 38.86 9.33 140.8
1.28 Legacy Reserves LGCY 5.98 1.13 23.30 10.54 1.07 196.0 Comstock Hldg Cl A CHCI 3.41 -0.54 -13.67 6.58 1.20 82.4
m rp

Americas DJ Americas 652.30 8.27 1.6

Brazil Sao Paulo Bovespa 76753.61 681.64 0.90 0.5 Cloud Peak Energy CLD 4.00 0.72 21.95 5.70 2.76 18.0 Daqo New Energy ADR DQ 57.15 -7.87 -12.10 72.50 19.00 162.6
Canada S&P/TSX Comp 16048.66 126.05 0.79 –1.0 SpartanNash SPTN 22.92 4.04 21.40 31.59 16.32 -23.1 Tel Instrument Elec TIK 2.95 -0.40 -11.94 6.35 2.05 -33.0
Mexico S&P/BMV IPC 44715.88 68.51 0.15 –9.4 Motus GI Holdings MOTS 5.39 0.78 16.92 7.85 3.75 ... Direxion S&P Oil Gas Br DRIP 6.35 -0.85 -11.81 28.73 5.59 -72.3
Chile Santiago IPSA 4062.30 –7.12 –0.17 –3.5 Movado Group MOV 49.20 7.00 16.59 49.85 20.50 133.2 Michael Kors Holdings KORS 60.41 -7.81 -11.45 70.00 32.38 82.1
0.27 Oramed Pharmaceuticals ORMP 8.22 1.11 15.61 11.34 6.15 0.9 Estre Ambiental ESTR 10.07 -1.18 -10.49 13.38 8.39 ...
EMEA Stoxx Europe 600 385.49 1.02 –0.9
co Fo

0.46 Dorian LPG LPG 8.41 1.09 14.89 8.73 6.20 7.7 TESARO TSRO 44.46 -5.17 -10.42 168.92 44.22 -70.2
Eurozone Euro Stoxx 383.36 1.77 –0.6
Belgium Bel-20 3784.65 24.14 0.64 –4.9 pdvWireless PDVW 26.70 3.35 14.35 39.75 22.00 11.7 Windstream Holdings WIN 5.92 -0.67 -10.17 23.60 5.51 -72.1
Denmark OMX Copenhagen 894.24 0.70 0.08 –3.5 Vince Holding VNCE 10.77 1.34 14.21 10.96 3.20 79.3 Motif Bio ADR MTFB 8.56 -0.94 -9.89 13.75 6.84 -4.9
France CAC 40 5427.35 –10.71 –0.20 2.2 Global Eagle Ent ENT 2.32 0.28 13.73 3.84 0.87 -24.9 Rigel Pharmaceuticals RIGL 3.32 -0.36 -9.78 4.71 2.14 45.0
Germany DAX 12783.76 117.25 0.93 –1.0 Applied Optoelectronics AAOI 40.62 4.90 13.72 103.41 22.54 -41.8 Direxion Natl Gas Bear 3x GASX 18.78 -2.03 -9.75 47.19 16.50 -49.4
1512.44 0.05 0.2 Invuity IVTY 3.35 0.40 13.56 9.55 2.35 -54.1 Direxion Daily En Bear 3x ERY 33.33 -3.38 -9.21 77.60 30.25 -51.2
Israel Tel Aviv 0.75
Italy FTSE MIB 21797.82 446.94 2.09 –0.3
Netherlands AEX 557.60 2.83 0.51 2.4
Most Active Stocks Volume Movers Ranked by change from 65-day average*
Russia RTS Index 1162.96 8.06 0.70 0.7 Volume % chg from Latest Session 52-Week Volume % chg from Latest Session 52-Week
Company Symbol (000) 65-day avg Close % chg High Low Company Symbol (000) 65-day avg Close % chg High Low
South Africa FTSE/JSE All-Share 55601.63 –334.12 –0.60 –6.6
Spain IBEX 35 9566.20 44.90 0.47 –4.8 Micron Technology MU 83,152 44.9 62.57 -0.08 64.66 26.85 GS Access Inv Grade Cp Bd GIGB 951 5295 48.25 -0.42 50.44 47.73
Sweden OMX Stockholm 574.92 –2.11 –0.37 1.1 Bank of America BAC 72,956 7.8 29.49 1.83 33.05 22.07 iSh US Oil Equip Svcs IEZ 2,206 3048 38.12 2.83 40.89 29.57
Switzerland Swiss Market 8578.68 –58.52 –0.68 –8.6 iShares MSCI Emg Markets EEM 70,610 6.2 45.71 0.79 52.08 40.90 PRA Health Sciences PRAH 7,382 1614 88.66 3.96 95.90 69.57
n-

Turkey BIST 100 103869.02 –1244.36 –1.18 –9.9 Finl Select Sector SPDR XLF 64,904 15.0 27.41 1.82 30.33 23.10 VicSh US SC Vol Wtd CSA 90 1569 48.36 1.34 49.00 40.61
0.75 0.02
SPDR S&P 500 SPY 62,952 -32.8 272.61 1.33 286.63 239.96 Cementos Pacasmayo ADR CPAC 134 1419 11.63 -2.68 14.11 10.60
U.K. FTSE 100 7689.57 56.93
U.K. FTSE 250 20822.67 75.91 0.37 0.5 Advanced Micro Devices AMD 57,050 0.1 13.82 3.44 15.65 9.04 PowerSh Bullet 2024 Cp Bd BSCO 727 1295 20.15 -0.49 21.17 19.87
General Electric GE 50,824 -30.2 14.17 -0.07 29.47 12.73 Wyndham Worldwide WYN 13,486 1223 110.82 2.15 127.96 95.30
no

Asia-Pacific
Petroleo Brasileiro ADR PBR 41,246 113.6 11.92 0.00 17.20 7.61 Barclays ETN+ Select MLP ATMP 941 1209 20.20 2.12 22.97 17.78
Australia S&P/ASX 200 5984.70 –28.90 –0.48 –1.3
Neovasc NVCN 40,910 -57.5 0.04 -0.28 1.89 0.03 Zymeworks ZYME 711 1105 21.60 7.04 22.07 6.25
China Shanghai Composite 3041.44 –79.02 –2.53 –8.0
Chesapeake Energy CHK 38,672 0.2 4.51 5.37 5.29 2.53 Abiomed ABMD 5,843 1072 388.57 0.30 403.45 134.80
Hong Kong Hang Seng 30056.79 –427.79 –1.40 0.5
* Volumes of 100,000 shares or more are rounded to the nearest thousand * Common stocks priced at $2 a share or more with an average volume over 65 trading days of at least
India S&P BSE Sensex 34906.11 –43.13 –0.12 2.5 5,000 shares =Has traded fewer than 65 days
Japan Nikkei Stock Avg 22018.52 –339.91 –1.52 –3.3
Singapore Straits Times 3443.95 –74.53 –2.12 1.2 Track the Markets
South Korea Kospi 2409.03 –48.22 –1.96 –2.4 Compare the performance of selected CURRENCIES & COMMODITIES
Taiwan TAIEX 10821.17 –142.95 –1.30 1.7 global stock indexes, bond ETFs,
Thailand SET 1725.14 –9.40 –0.54 –1.6
currencies and commodities at Currencies
WSJ.com/TrackTheMarkets
Sources: SIX Financial Information; WSJ Market Data Group
U.S.-dollar foreign-exchange rates in late New York trading
US$vs, US$vs,
Wed YTDchg Wed YTDchg
CREDIT MARKETS Country/currency in US$ per US$ (%) Country/currency
Vietnam dong
in US$ per US$ (%)
.00004375 22855 0.6
Americas
Argentina peso .0401 24.9260 34.0 Europe
Consumer Rates and Returns to Investor Benchmark
Treasury Yields
yield curve Forex Race Brazil real .2683 3.7266 12.5 Czech Rep. koruna .04513 22.157 4.1

U.S. consumer rates Selected rates and

Yield toRates
maturity of current bills, Yen, euro vs. dollar; dollar vs. Canada dollar .7767 1.2876 2.4 Denmark krone .1567 6.3809 2.8
notes and bonds major U.S. trading partners Chile peso .001593 627.60 2.0 Euro area euro 1.1666 .8572 2.9
A consumer rate against its 5-year CDs Ecuador US dollar 1 1 unch Hungary forint .003650 273.96 5.8
benchmark over the past year Mexico peso .0507 19.7266 0.3 Iceland krona .009491 105.36 1.8
3.75% 15%
Bankrate.com avg†: 1.71% Uruguay peso .03207 31.1800 8.3 Norway krone .1222 8.1830 –0.3
BankPurely,adivisionofFlushingBank 2.87% 3.00 Venezuela b. fuerte .00001379902.5001 772513.2 Poland zloty .2710 3.6901 6.1
Wednesday 10
2.00% Euro Russia ruble .01610 62.115 7.7
Uniondale, NY 844-878-7359 Asia-Pacific
s

t 2.25 Sweden krona .1135 8.8112 7.6

Five-year CD yields 5 Australian dollar .7575 1.3201 3.1
t iGObanking 2.87% Switzerland franc 1.0109 .9892 1.5
1.50 Yen
s

Uniondale, NY 888-432-5890 1.50 China yuan .1558 6.4177 –1.3 Turkey lira .2240 4.4650 17.7
0 .1274 7.8478
Hong Kong dollar 0.4 Ukraine hryvnia .0383 26.1140 –7.2
1.00 First Internet Bank of Indiana 2.94% t
0.75 India rupee .01483 67.433 5.6
t –5 UK pound 1.3283 .7528 1.7
Indianapolis, IN 888-873-3424 One year ago WSJ Dollar index Indonesia rupiah .0000715 13990 3.8
s

Federal-funds 0.50 Middle East/Africa

Popular Direct 3.05% 0.00 –10 Japan yen .009182 108.91 –3.4
target rate Kazakhstan tenge .003034 329.60 –0.9 Bahrain dinar 2.6482 .3776 0.1
New York, NY 800-274-5696 1 3 6 1 2 3 5 710 30 2017 2018
0.00 Macau pataca .1238 8.0759 0.4 Egypt pound .0558 17.9215 0.8
M.Y. Safra Bank, FSB 3.06% month(s) years Israel shekel .2801 3.5697 2.6
J J A S O N D J FMA M Malaysia ringgit .2508 3.9875 –1.8
New York, NY 212-652-7200 maturity New Zealand dollar .6988 1.4310 1.5 Kuwait dinar 3.3075 .3023 0.3
2017 2018
Sources: Ryan ALM; Tullett Prebon; WSJ Market Data Group Pakistan rupee .00865 115.637 4.5 Oman sul rial 2.5970 .3851 0.03
Yield/Rate (%) 52-Week Range (%) 3-yr chg .0190 52.542 Qatar rial .2747 3.641 –0.2
Philippines peso 5.2
Interest rate Last (l)Week ago Low 0 2 4 6 8 High (pct pts)
Corporate Borrowing Rates and Yields Singapore dollar .7468 1.3391 0.1 Saudi Arabia riyal .2666 3.7503 ...
Federal-funds rate target 1.50-1.75 1.50-1.75 0.75 l 1.50 1.50 South Korea won .0009284 1077.09 0.9 South Africa rand .0799 12.5218 1.3
Yield (%) 52-Week Total Return (%)
Bond total return index Close Last Week ago High Low 52-wk 3-yr Sri Lanka rupee .0063255 158.09 3.0 Close Net Chg % Chg YTD%Chg
Prime rate* 4.75 4.75 4.00 l 4.75 1.50
Taiwan dollar .03341 29.933 0.9 WSJ Dollar Index 87.05 –0.51–0.59 1.25
Libor, 3-month 2.30 2.33 1.21 l 2.37 2.02 Treasury, Ryan ALM 1439.667 2.710 2.858 2.945 1.818 –1.261 0.675 Thailand baht .03122 32.030 –1.7 Sources: Tullett Prebon, WSJ Market Data Group
Money market, annual yield 0.47 0.46 0.25 l 0.47 0.11 10-yr Treasury, Ryan ALM 1681.996 2.842 3.003 3.109 2.058 –3.424 –0.242
Five-year CD, annual yield 1.71 1.71 1.33 l 1.71 0.27 DJ Corporate 371.038 3.826 3.915 3.995 2.879 –0.437 2.545 Commodities Wednesday 52-Week YTD
30-year mortgage, fixed† 4.45 4.66 3.73 l 4.69 0.49 Aggregate, Barclays Capital 1914.190 3.210 3.340 3.430 2.380 –0.351 1.364 Pricing trends on someClose
raw materials, or commodities
Net chg % Chg High Low % Chg % chg
15-year mortgage, fixed† 3.93 4.12 2.99 l 4.14 0.76
High Yield 100, Merrill Lynch n.a. n.a. 6.048 n.a. n.a. n.a. n.a. DJ Commodity 659.08 3.27 0.50 667.35 532.01 19.30 5.39
Jumbo mortgages, $424,100-plus† 4.69 4.87 4.21 l 4.96 0.49
Fixed-Rate MBS, Barclays 1968.250 3.320 3.500 3.580 2.660 –0.263 1.172 TR/CC CRB Index 203.29 1.48 0.73 206.38 166.50 13.08 4.86
Five-year adj mortgage (ARM)† 4.15 4.69 3.22 l 4.78 0.93
Muni Master, Merrill n.a. n.a. 2.567 n.a. n.a. n.a. n.a. Crude oil, $ per barrel 68.21 1.48 2.22 72.24 42.53 41.16 12.89
New-car loan, 48-month 4.17 4.22 2.85 l 4.28 1.12
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 776.313 6.433 6.496 6.617 5.279 –1.347 4.216 Natural gas, $/MMBtu 2.885 -0.018 -0.62 3.63 2.55 -6.06 -2.30
banks.† Excludes closing costs. Gold, $ per troy oz. 1301.50 2.50 0.19 1362.40 1208.60 2.32 -0.37
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

Get real-time U.S. stock quotes and track most-active stocks, new highs/lows and mutual funds. Plus, deeper money-flows data and email delivery of key stock-market data. Available free at WSJMarkets.com
 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.

B8 | Thursday, May 31, 2018 THE WALL STREET JOURNAL.

COMMODITIES WSJ.com/commodities

Futures Contracts Contract Open Contract Open Contract Open

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

Metal & Petroleum Futures Dec 417.75 417.75 410.50 413.25 –5.75 530,589 Oct 12.55 12.84 12.50 12.82 .11 275,324 Sept .7694 .7808 .7689 .7783 .0085 17,677
Oats (CBT)-5,000 bu.; cents per bu. Sugar-Domestic (ICE-US)-112,000 lbs.; cents per lb. British Pound (CME)-£62,500; $ per £
Contract Open
July 244.75 247.00 238.00 238.75 –5.25 3,622 July 24.52 24.52 24.52 24.70 .19 1,643 June 1.3264 1.3318 1.3253 1.3290 .0032 199,138
Open High hi lo Low Settle Chg interest
Dec 250.50 250.50 246.25 248.50 –2.75 1,117 Sept 25.50 25.50 25.50 25.50 .01 2,088 Sept 1.3325 1.3371 1.3319 1.3348 .0029 5,198
Copper-High (CMX)-25,000 lbs.; $ per lb. Soybeans (CBT)-5,000 bu.; cents per bu. Cotton (ICE-US)-50,000 lbs.; cents per lb. Swiss Franc (CME)-CHF 125,000; $ per CHF
June 3.0440 3.0620 3.0000 3.0595 0.0075 3,380 July 1030.50 1031.75 1014.75 1023.00 –7.50 381,001 94.21 96.40 s 91.22 92.49 –.72 112,676
July June 1.0107 1.0138 1.0081 1.0124 –.0014 102,631
July 3.0550 3.0765 3.0100 3.0690 0.0065 133,081 1042.25 1043.75 1028.50 1036.50 –6.00 268,545
Nov Dec 91.76 93.73 s 89.00 90.85 .20 149,541 Sept 1.0183 1.0219 1.0165 1.0206 –.0015 4,497
Gold (CMX)-100 troy oz.; $ per troy oz. Soybean Meal (CBT)-100 tons; $ per ton. Orange Juice (ICE-US)-15,000 lbs.; cents per lb. Australian Dollar (CME)-AUD 100,000; $ per AUD
June 1298.00 1303.70 1295.20 1301.50 2.50 36,748 July 380.10 380.20 373.00 376.90 –3.30 212,088 July 168.30 168.40 161.65 162.70 –7.20 12,653 June .7484 .7585 .7477 .7575 .0073 152,156
Aug 1303.00 1308.80 1300.00 1306.50 2.40 315,030 Dec 376.80 377.90 371.70 375.40 –2.50 109,290 Sept 168.40 168.40 161.90 163.10 –6.90 2,743 July .7498 .7580 .7486 .7577 .0073 600
Oct 1313.00 1314.80 1306.50 1312.70 2.50 11,386 Soybean Oil (CBT)-60,000 lbs.; cents per lb.
Dec 1315.90 1321.20 1312.90 1319.10 2.40 78,870 Aug .7515 .7580 .7488 .7578 .0073 270
July 31.21 31.54 31.12 31.48 .27 227,482 Interest Rate Futures Sept .7488 .7586 .7482 .7580 .0073 3,362
Feb'19 1323.00 1326.50 1323.00 1325.40 2.40 11,894
Dec 32.01 32.35 31.91 32.27 .26 117,029 Dec .7532 .7579 .7526 .7585 .0072 423
Dec 1355.00 1356.40 1355.00 1357.60 3.00 4,201 Rough Rice (CBT)-2,000 cwt.; $ per cwt. Treasury Bonds (CBT)-$100,000; pts 32nds of 100%
Palladium (NYM) - 50 troy oz.; $ per troy oz. June 146-140 146-230 144-170 145-140 –26.0 173,980 Mexican Peso (CME)-MXN 500,000; $ per MXN
July 1145.00 1184.50 1145.00 1166.00 20.00 5,942
June 970.30 978.70 968.10 976.00 3.70 1,090 Sept 145-200 145-280 143-220 144-190 –26.0 730,315 June .05024 .05074 .05018 .05032 .00018 179,754
Sept 1125.00 1152.50 1125.00 1145.00 19.00 2,813
Sept 969.20 978.30 966.30 975.00 4.00 20,222 Treasury Notes (CBT)-$100,000; pts 32nds of 100% Sept .04967 .04998 .04945 .04956 .00016 1,917
Wheat (CBT)-5,000 bu.; cents per bu. Euro (CME)-€125,000; $ per €
Dec 967.10 971.30 966.00 970.10 3.00 421 June 121-075 121-125 120-085 120-195 –20.0 720,363
July 534.75 534.75 516.50 522.00 –14.50 238,292
Platinum (NYM)-50 troy oz.; $ per troy oz. Sept 120-295 121-030 119-295 120-095 –20.5 3,272,508 June 1.1558 1.1692 1.1534 1.1668 .0120 517,263
Dec 569.50 570.00 553.50 558.25 –13.75 116,845
June 902.70 908.60 902.70 906.50 2.70 17 5 Yr. Treasury Notes (CBT)-$100,000; pts 32nds of 100% Sept 1.1641 1.1775 1.1618 1.1751 .0118 25,596
Wheat (KC)-5,000 bu.; cents per bu.
July 906.80 911.90 903.50 908.50 2.60 71,616 June 114-182 114-222 113-310 114-032 –15.2 731,780
July 556.00 556.00 536.25 540.75 –15.75 135,215
Silver (CMX)-5,000 troy oz.; $ per troy oz. Sept 573.25 573.25 554.75 559.25 –15.25 65,442 Sept 114-135 114-152 113-222 113-280 –15.5 3,161,886 Index Futures
June 16.340 16.505 16.260 16.479 0.168 678 2 Yr. Treasury Notes (CBT)-$200,000; pts 32nds of 100%
Wheat (MPLS)-5,000 bu.; cents per bu. Mini DJ Industrial Average (CBT)-$5 x index
July 16.375 16.580 16.325 16.544 0.171 140,588 June 106-140 106-160 106-067 106-075 –6.2 378,583
July 627.50 628.00 611.00 611.50 –16.50 29,818 June 24398 24715 24325 24669 292 101,876
Crude Oil, Light Sweet (NYM)-1,000 bbls.; $ per bbl. Sept 635.00 635.50 618.50 619.25 –16.50 14,807 Sept 106-110 106-125 106-030 106-042 –6.2 1,655,499
July 66.85 68.67 66.35 68.21 1.48 509,692 Sept 24405 24736 24350 24691 291 2,772
Cattle-Feeder (CME)-50,000 lbs.; cents per lb. 30 Day Federal Funds (CBT)-$5,000,000; 100 - daily avg. S&P 500 Index (CME)-$250 x index
Aug 66.73 68.52 66.25 68.08 1.46 240,700
Aug 144.425 148.825 144.125 148.550 3.575 26,092 May 98.303 98.303 98.300 98.300 … 203,735 June 2690.70 2729.00 2686.20 2724.60 32.40 98,608
Sept 66.35 68.07 65.88 67.66 1.39 245,896
Oct 144.200 147.975 143.600 147.625 3.250 6,210 July 98.120 98.125 98.090 98.100 –.025 254,815 Sept 2710.00 2731.50 2709.50 2728.90 32.40 17,572
Oct 65.97 67.51 65.45 67.18 1.31 187,465
Cattle-Live (CME)-40,000 lbs.; cents per lb. 10 Yr. Del. Int. Rate Swaps (CBT)-$100,000; pts 32nds of 100% Mini S&P 500 (CME)-$50 x index
Dec 65.39 66.79 64.76 66.44 1.23 296,541
June 103.050 106.125 102.850 106.125 3.000 41,532 June 93.844 94.297 93.844 94.125 –.641 33,210 June 2693.25 2729.25 2685.75 2724.50 32.25 2,994,694
Dec'19 60.87 61.95 60.57 61.70 0.75 176,789
Aug 101.350 104.450 101.075 104.450 3.000 166,118 1 Month Libor (CME)-$3,000,000; pts of 100% 2697.75 2733.25 2690.00 2729.00 32.50 163,807
NY Harbor ULSD (NYM)-42,000 gal.; $ per gal. Hogs-Lean (CME)-40,000 lbs.; cents per lb. June 97.9350 97.9350 97.9350 97.9400 .0075 4,007
Sept
June 2.1880 2.2362 2.1779 2.2317 .0458 15,930 Mini S&P Midcap 400 (CME)-$100 x index
June 75.975 77.375 75.875 77.325 1.650 25,606 July 97.9225 97.9225 97.9225 97.9350 .0100 2,717
July 2.1822 2.2315 2.1717 2.2255 .0447 139,924 June 1943.60 1975.10 1937.00 1969.90 30.60 81,894
Gasoline-NY RBOB (NYM)-42,000 gal.; $ per gal. July 79.075 80.250 78.825 80.125 1.275 75,500 Eurodollar (CME)-$1,000,000; pts of 100% Mini Nasdaq 100 (CME)-$20 x index
Lumber (CME)-110,000 bd. ft., $ per 1,000 bd. ft. June 97.7025 97.7100 97.6925 97.7050 –.0075 1,515,797 6948.0 6994.8 6918.5 6987.3 42.8 237,338
June 2.1470 2.1934 2.1372 2.1842 .0401 19,408 June
July 610.80 611.00 599.10 599.10 –10.00 4,784 Dec 97.5200 97.5500 97.4450 97.4650 –.0700 1,982,133
July 2.1399 2.1850 2.1284 2.1724 .0353 174,157 Sept 6970.0 7018.5 6944.0 7012.0 42.8 13,754
Sept 593.50 593.50 583.10 584.20 –8.90 996 June'19 97.3850 97.4300 97.2750 97.2900 –.1200 1,471,718
Natural Gas (NYM)-10,000 MMBtu.; $ per MMBtu. Milk (CME)-200,000 lbs., cents per lb. Mini Russell 2000 (ICE-US)-$100 x index
July 2.900 2.906 2.867 2.885 –.018 320,242 Dec 97.2850 97.3300 97.1500 97.1650 –.1400 1,908,215 June 1623.40 1652.80 s 1620.80 1649.20 24.10 10,707
May 15.18 15.19 15.17 15.17 … 3,761
Aug 2.920 2.926 2.888 2.905 –.018 103,969
June 15.74 15.75 15.65 15.66 –.10 3,851
Mini Russell 1000 (ICE-US)-$100 x index
Sept 2.904 2.912 2.876 2.891 –.018 175,402 Currency Futures June 1510.60 1514.90 1510.60 1513.70 20.10 73
Cocoa (ICE-US)-10 metric tons; $ per ton.
Oct 2.912 2.917 2.883 2.897 –.018 149,039
July 2,498 2,541 2,494 2,529 32 108,678 Japanese Yen (CME)-¥12,500,000; $ per 100¥ U.S. Dollar Index (ICE-US)-$1,000 x index
Jan'19 3.134 3.136 3.109 3.119 –.017 107,751 June .9235 .9240 .9179 .9196 –.0052 164,958 June 94.80 94.93 93.99 94.12 –.67 42,154
Sept 2,554 2,594 2,550 2,584 31 72,050
March 2.984 2.995 2.970 2.979 –.012 101,450 Sept 94.35 94.47 93.56 93.67 –.67 2,450
Coffee (ICE-US)-37,500 lbs.; cents per lb. Sept .9292 .9299 .9239 .9255 –.0054 6,926
July 119.75 122.20 119.75 120.30 .05 125,658 Canadian Dollar (CME)-CAD 100,000; $ per CAD
Agriculture Futures Sept 122.10 124.40 121.95 122.50 .10 65,619 June .7684 .7794 .7672 .7768 .0086 125,786 Source: SIX Financial Information
Corn (CBT)-5,000 bu.; cents per bu. Sugar-World (ICE-US)-112,000 lbs.; cents per lb.
July 398.25 398.50 390.75 393.50 –6.50 773,970 July 12.29 12.62 12.24 12.60 .14 410,768
Bonds | WSJ.com/bonds
Cash Prices Wednesday, May 30, 2018 Tracking Bond Benchmarks
These prices reflect buying and selling of a variety of actual or “physical” commodities in the marketplace— Return on investment and spreads over Treasurys and/or yields paid to investors compared with 52-week
separate from the futures price on an exchange, which reflects what the commodity might be worth in future highs and lows for different types of bonds
Total Total
months. return YTD total return YTD total
Yield (%) Yield (%)
Wednesday Wednesday Wednesday close return (%) Index Latest Low High close return (%) Index Latest Low High
(U.S.$ equivalent) *16.4750 Soybeans,No.1 yllw IL-bp,u 9.8700
Energy 7.4400 Broad Market Bloomberg Barclays Mortgage-Backed Bloomberg Barclays
Coins,wholesale $1,000 face-a 12169 Wheat,Spring14%-pro Mnpls-u

.
Propane,tet,Mont Belvieu-g 0.9282 Other metals Wheat,No.2 soft red,St.Louis-bp,u 5.3550 1968.25 -1.0 Mortgage-Backed 3.320 2.660 3.580
1914.19 -1.6 U.S. Aggregate 3.210 2.380 3.430

ly
Butane,normal,Mont Belvieu-g 1.0292 LBMA Platinum Price PM *904.0 Wheat - Hard - KC (USDA) $ per bu-u 5.3425
NaturalGas,HenryHub-i 2.830 Platinum,Engelhard industrial 909.0 Wheat,No.1soft white,Portld,OR-u 5.8750 U.S. Corporate Indexes Bloomberg Barclays 1935.13 -1.0 Ginnie Mae (GNMA) 3.290 2.630 3.540
NaturalGas,TranscoZone3-i 2.810 Platinum,Engelhard fabricated 1009.0 Food 1154.24 -1.0 Fannie mae (FNMA) 3.320 2.670 3.590
2719.61 -2.8 U.S. Corporate 3.890 3.030 4.070
NaturalGas,TranscoZone6NY-i 2.720 Palladium,Engelhard industrial 984.0
NaturalGas,PanhandleEast-i 2.380 Palladium,Engelhard fabricated 1084.0
on Beef,carcass equiv. index 2582.45 -1.4 Intermediate 3.580 2.530 3.760 1777.42 -1.1 Freddie Mac (FHLMC) 3.350 2.680 3.610
NaturalGas,Opal-i 2.040 Aluminum, LME, $ per metric ton *2260.0 choice 1-3,600-900 lbs.-u 192.98
select 1-3,600-900 lbs.-u 169.31 3710.13 -5.8 Long term 4.580 3.990 4.750 n.a. n.a. Muni Master n.a. n.a. n.a.
NaturalGas,MarcellusNE PA-i 1.120 Copper,Comex spot 3.0595
NaturalGas,HaynesvilleN.LA-i 2.720 Iron Ore, 62% Fe CFR China-s n.a. Broilers, National comp wghtd-u,w 1.1957 557.70 -1.9 Double-A-rated 3.320 2.470 3.500 n.a. n.a. 7-12 year n.a. n.a. n.a.
Coal,C.Aplc.,12500Btu,1.2SO2-r,w 62.250 Shredded Scrap, US Midwest-s,m n.a. Butter,AA Chicago 2.4250
Cheddar cheese,bbl,Chicago 155.75 701.52 -2.8 Triple-B-rated 4.190 3.340 4.370 n.a. n.a. 12-22 year n.a. n.a. n.a.
12.400 n.a.
us l,

Coal,PwdrRvrBsn,8800Btu,0.8SO2-r,w Steel, HRC USA, FOB Midwest Mill-s

Cheddar cheese,blk,Chicago 160.75 High Yield Bonds Merrill Lynch n.a. n.a. 22-plus year n.a. n.a. n.a.
Metals Fibers and Textiles Milk,Nonfat dry,Chicago lb. 84.00
Gold, per troy oz 0.5725 Cocoa,Ivory Coast-w 2832 n.a. n.a. High Yield Constrained n.a. n.a. n.a. Global Government J.P. Morgan†
al a

Burlap,10-oz,40-inch NY yd-n,w
e
Engelhard industrial 1303.86 Cotton,1 1/16 std lw-mdMphs-u 0.9149 Coffee,Brazilian,Comp 1.1941 n.a. n.a. Triple-C-rated n.a. n.a. n.a. 541.28 -0.5 Global Government 1.600 1.300 1.680
Engelhard fabricated 1401.65 Cotlook 'A' Index-t *96.70 Coffee,Colombian, NY 1.4031
1300.70 Eggs,large white,Chicago-u 0.7750 n.a. n.a. High Yield 100 n.a. n.a. n.a. 755.25 0.1 Canada 2.220 1.570 2.450
ci on

Handy & Harman base Hides,hvy native steers piece fob-u n.a.
Handy & Harman fabricated 1443.77 n.a. Flour,hard winter KC 16.80 367.66 -0.8 EMU§ 1.316 0.956 1.316
Wool,64s,staple,Terr del-u,w n.a. n.a. Global High Yield Constrained n.a. n.a. n.a.
LBMA Gold Price AM *1302.05 Hams,17-20 lbs,Mid-US fob-u n.a.
LBMA Gold Price PM *1295.50 Grains and Feeds Hogs,Iowa-So. Minnesota-u 69.37 n.a. n.a.
Europe High Yield Constrained n.a. n.a. n.a. 716.22 0.8 France 0.840 0.690 1.040
Krugerrand,wholesale-e 1354.50 Barley,top-quality Mnpls-u n.a. Pork bellies,12-14 lb MidUS-u n.a. U.S Agency Bloomberg Barclays 513.86 1.3 Germany 0.400 0.330 0.740
Maple Leaf-e 1367.52 Bran,wheat middlings, KC-u 90 Pork loins,13-19 lb MidUS-u 0.9457
American Eagle-e 1367.52 Corn,No. 2 yellow,Cent IL-bp,u 3.6600 Steers,Tex.-Okla. Choice-u n.a. 1629.08 -0.5 U.S Agency 2.680 1.690 2.870 290.79 0.7 Japan 0.350 0.350 0.460
er rs

Mexican peso-e 1578.30 Corn gluten feed,Midwest-u,w 138.9 Steers,feeder,Okla. City-u,w 157.50
Austria crown-e 1279.61 1459.66 -0.2 10-20 years 2.570 1.510 2.760 566.79 1.1 Netherlands 0.530 0.460 0.830
Corn gluten meal,Midwest-u,w 493.8
1367.52
Fats and Oils
Austria phil-e Cottonseed meal-u,w 263 3302.93 -2.5 20-plus years 3.290 2.730 3.550 939.65 0.9 U.K. 1.490 1.340 1.830
Silver, troy oz. Hominy feed,Cent IL-u,w 102 Corn oil,crude wet/dry mill-u,w 30.1000
Engelhard industrial 16.4700 Meat-bonemeal,50% pro Mnpls-u,w 303 Grease,choice white,Chicago-h 0.2500 2415.27 -1.9 Yankee 3.580 2.610 3.740 776.31 -3.9 Emerging Markets ** 6.433 5.279 6.617
n.a.
m e

Engelhard fabricated 19.7640 Oats,No.2 milling,Mnpls-u 2.8625 Lard,Chicago-u *Constrained indexes limit individual issuer concentrations to 2%; the High Yield 100 are the 100 largest bonds † In local currency § Euro-zone bonds
Handy & Harman base 16.5330 Rice, Long Grain Milled, No. 2 AR-u,w 25.75 Soybean oil,crude;Centl IL-u 0.2983 ** EMBI Global Index Sources: Merrill Lynch; Bloomberg Barclays; J.P.Morgan
Handy & Harman fabricated 20.6660 Sorghum,(Milo) No.2 Gulf-u 8.0500 Tallow,bleach;Chicago-h 0.2500
387.40 Tallow,edible,Chicago-u n.a.
m rp

LBMA spot price *£12.4300 SoybeanMeal,Cent IL,rail,ton48%-u

Global Government Bonds: Mapping Yields
KEY TO CODES: A=ask; B=bid; BP=country elevator bids to producers; C=corrected; E=Manfra,Tordella & Brooks; G=ICE; H=Hurley Brokerage; I=Natural Gas Intelligence;
M=monthly; N=nominal; n.a.=not quoted or not available; R=SNL Energy; S=Platts-TSI; T=Cotlook Limited; U=USDA; W=weekly, Z=not quoted. *Data as of 5/29
Yields and spreads over or under U.S. Treasurys on benchmark two-year and 10-year government bonds in
Source: WSJ Market Data Group selected other countries; arrows indicate whether the yield rose(s) or fell (t) in the latest session
Country/ Yield (%) Spread Under/Over U.S. Treasurys, in basis points
Coupon (%) Maturity, in years Latest(l)-2 -1 0 1 2 3 4 Previous Month ago Year ago Latest Prev Year ago
Borrowing Benchmarks | WSJ.com/bonds
co Fo

2.500 U.S. 2 2.420 s l 2.327 2.492 1.286

2.875 10 2.843 s l 2.777 2.953 2.209
Money Rates May 30, 2018 4.500 Australia 2 1.978 t l 1.981 2.055 1.574 -44.2 -34.6 28.8
2.250 10 2.657 t l 2.697 2.780 2.402 -18.6 -7.9 19.3
Key annual interest rates paid to borrow or lend money in U.S. and international markets. Rates below are a
guide to general levels but don’t always represent actual transactions. 0.000 France 2 -0.473 s l -0.578 -0.498 -0.488 -289.2 -290.5 -177.3
Week —52-WEEK— Week —52-WEEK— 0.750 10 0.693 s l 0.657 0.789 0.730 -215.0 -212.0 -147.9
Inflation Latest ago High Low Latest ago High Low
April index Chg From (%) 0.000 Germany 2 -0.676 s l -0.804 -0.590 -0.733 -309.5 -313.1 -201.9
Treasury bill auction One year 2.70000 2.75409 2.78031 1.69511
level March '18 April '17 0.500 10 0.376 s l 0.255 0.561 0.293 -246.7 -252.1 -191.6
4 weeks 1.750 1.720 1.750 0.840 Euro Libor
U.S. consumer price index 13 weeks 1.895 1.895 1.895 0.960
0.350 Italy 2 1.733 t l 2.418 -0.311 -0.160 -68.7 9.0 -144.6
One month -0.401 -0.399 -0.397 -0.420
All items 250.546 0.40 2.5 26 weeks 2.030 2.080 2.080 1.060 2.000 10 2.903 t l 3.100 1.782 2.175 6.0 32.4 -3.4
Core 257.025 0.16 2.1 Three month -0.351 -0.352 -0.351 -0.389
Secondary market Six month -0.307 -0.310 -0.286 -0.339 0.100 Japan 2 -0.149 t l -0.147 -0.136 -0.166 -256.8 -247.5 -145.2
International rates One year -0.231 -0.230 -0.168 -0.263 0.100 10 0.031 t l 0.033 0.056 0.040 -281.2 -274.3 -216.9
n-

Fannie Mae
Week 52-Week 30-year mortgage yields Euro interbank offered rate (Euribor) 1.400 Spain 2 -0.032 s l -0.057 -0.350 -0.306 -245.2 -238.5 -159.2
Latest ago High Low 30 days 4.120 4.251 4.344 3.253 One month -0.370 -0.371 -0.366 -0.374 1.400 10 1.583 t l 1.602 1.278 1.524 -126.1 -117.5 -68.5
60 days 4.147 4.277 4.371 3.281 Three month -0.321 -0.323 -0.321 -0.332
Prime rates 2.000 U.K. 2 0.644 s l 0.602 0.773 0.087 -177.6 -172.5 -119.9
Six month -0.269 -0.270 -0.254 -0.279
no

U.S. 4.75 4.75 4.75 4.00 Other short-term rates One year -0.184 -0.189 -0.131 -0.194 4.250 10 1.259 s l 1.196 1.419 0.998 -158.5 -158.0 -121.1
Canada 3.45 3.45 3.45 2.70
Week 52-Week Value 52-Week Source: Tullett Prebon
Japan 1.475 1.475 1.475 1.475

Policy Rates
Latest ago high low Latest Traded High Low
Corporate Debt
Call money DTCC GCF Repo Index in that same company’s share price.
Euro zone 0.00 0.00 0.00 0.00
Treasury 1.801 12.050 2.068 0.928
Switzerland 0.50 0.50 0.50 0.50 3.50 3.50 3.50 2.75
MBS 1.815 100.450 1.971 0.933
Investment-grade spreads that tightened the most…
Britain 0.50 0.50 0.50 0.25 Spread*, in basis points Stock Performance
Australia 1.50 1.50 1.50 1.50
Commercial paper (AA financial) Open Implied Issuer Symbol Coupon (%) Maturity Current One-day change Last week Close ($) % chg
90 days 2.23 1.98 2.31 1.05 Settle Change Interest Rate
Overnight repurchase Unicredit Spa UCGIM 5.861 June 19, ’32 442 –28 347 ... ...
U.S. 1.81 1.79 2.18 0.90
Libor DTCC GCF Repo Index Futures Deutsche Bank AG DB 7.500 April 30, ’49 568 –22 457 11.57 2.39
One month 1.98246 1.95969 1.98246 1.06033 Treasury May 98.220 0.002 1207 1.780 Standard Chartered STANLN 7.500 April 2, ’49 375 –21 300 ... ...
U.S. government rates Three month 2.30031 2.33000 2.36906 1.21000 Treasury Jun 98.075 unch. 849 1.925 Intesa Sanpaolo SpA ISPIM 5.017 June 26, ’24 425 –15 315 ... ...
Six month 2.46688 2.49750 2.52375 1.41406 Treasury Jly 97.980 -0.020 581 2.020
Discount JPMorgan Chase JPM 2.550 Oct. 29, ’20 57 –15 n.a. 108.35 2.28
2.25 2.25 2.25 1.50 Notes on data: Societe Generale S.A. SOCGEN 7.375 Sept. 13, ’49 337 –14 n.a. ... ...
U.S. prime rate is the base rate on corporate loans posted by at least 70% of the 10 largest U.S. banks, CVS Health CVS 3.700 March 9, ’23 107 –12 101 65.99 1.84
Federal funds and is effective March 22, 2018. Other prime rates aren’t directly comparable; lending practices vary Macy's Retail Holdings M 2.875 Feb. 15, ’23 145 –12 n.a. … …
Effective rate 1.7400 1.7400 1.7400 0.8600 widely by location; Discount rate is effective March 22, 2018. DTCC GCF Repo Index is Depository
High 1.9500 1.9500 1.9500 1.0625
Trust & Clearing Corp.'s weighted average for overnight trades in applicable CUSIPs. Value traded is in
billions of U.S. dollars. Federal-funds rates are Tullett Prebon rates as of 5:30 p.m. ET. Futures on the
…And spreads that widened the most
Low 1.6700 1.6900 1.7100 0.7500 DTCC GCF Repo Index are traded on NYSE Liffe US. 3.375 Jan. 12, ’23 160 ...
Intesa Sanpaolo SpA ISPIM 230 22 ...
Bid 1.6800 1.7000 1.7200 0.8200 Sources: Federal Reserve; Bureau of Labor Statistics; DTCC; SIX Financial Information;
Qualcomm QCOM 3.000 May 20, ’22 76 19 71 58.39 0.27
Offer 1.7300 1.7400 1.7400 0.8300 Tullett Prebon Information, Ltd.
Discovery Communications DISCA 4.900 March 11, ’26 179 16 159 … …
Royal Bank of Scotland RBS 8.625 Aug. 15, ’49 305 16 n.a. 7.41 ...
Exchange-Traded Portfolios | WSJ.com/ETFresearch UniCredit SpA Roma
ING Bank
UCGIM
INTNED
3.750 April 12, ’22
5.800 Sept. 25, ’23
241
174
16
15
132
146
...
...
...
...
Closing Chg YTD General Electric GE 5.000 Jan. 21, ’49 247 12 220 14.17 –0.07
Largest 100 exchange-traded funds, latest session ETF Symbol Price (%) (%)
BNP Paribas S.A. BNP 5.125 Nov. 15, ’49 357 11 n.a. ... ...
SchwabUS Div SCHD 49.92 1.42 –2.4
Wednesday, May 30, 2018 Closing Chg YTD
Closing Chg YTD ETF Symbol Price (%) (%) SchwabUS LC
SchwabUS SC
SCHX
SCHA
65.28
74.10
1.29
1.49
2.4
6.3
High-yield issues with the biggest price increases…
ETF Symbol Price (%) (%) iShMSCI EAFE SC SCZ 65.24 1.54 1.1 SPDR DJIA Tr DIA 246.70 1.33 –0.3 Bond Price as % of face value Stock Performance
AlerianMLPETF AMLP 10.31 1.78 –4.4 iShMSCIEmgMarkets EEM 45.71 0.79 –3.0 SPDR S&PMdCpTr MDY 358.59 1.53 3.8 Issuer Symbol Coupon (%) Maturity Current One-day change Last week Close ($) % chg
CnsmrDiscSelSector XLY 106.27 0.91 7.7 iShMSCIEurozone EZU 42.84 2.13 –1.2 SPDR S&P 500 SPY 272.61 1.33 2.2
CnsStapleSelSector XLP 50.47 1.41 –11.3 iShMSCIJapan EWJ 60.15 0.70 0.4 SPDR S&P Div SDY 93.12 1.43 –1.4 APX APXSEC 8.750 Dec. 1, ’20 92.000 2.83 93.250 ... ...
iShNasdaqBiotech IBB 108.51 1.34 1.6 TechSelectSector XLK 69.88 0.74 9.3
EnSelectSectorSPDR XLE 76.60 3.03 6.0
109.03 –0.24 –1.5 22.44 –3.4
EP Energy EPENEG 8.000 Nov. 29, ’24 99.500 2.50 100.000 ... ...
FinSelSectorSPDR XLF 27.41 1.82 –1.8
iShNatlMuniBd MUB VanEckGoldMiner GDX 1.31
FT DJ Internet FDN 133.91 1.13 21.9
iShRussell1000Gwth IWF 143.19 1.07 6.3 VangdInfoTech VGT 183.20 0.74 11.2 California Resources CRC 8.000 Dec. 15, ’22 88.625 2.38 91.000 35.26 7.60
iShRussell1000 IWB 152.08 1.31 2.3 VangdSC Val VBR 137.11 1.41 3.3 MEG Energy MEGCN 7.000 March 31, ’24 92.125 2.13 94.000 ... ...
HealthCareSelSect XLV 83.32 1.50 0.8
iShRussell1000Val IWD 122.09 1.53 –1.8 VangdSC Grwth VBK 175.27 1.46 9.0
IndSelSectorSPDR XLI 75.53 1.41 –0.2
iSh1-3YCreditBond CSJ 103.94 –0.16 –0.6
iShRussell2000Gwth IWO 204.40 1.51 9.5 VangdDivApp VIG 103.00 1.38 1.0 Intelsat Luxembourg S.A. INTEL 7.750 June 1, ’21 80.750 1.81 80.125 ... ...
iShRussell2000 IWM 164.08 1.58 7.6 VangdFTSEDevMk VEA 44.41 1.44 –1.0
iSh3-7YTreasuryBd IEI 120.22 –0.29 –1.6
132.62 1.59 5.5
Sanchez Energy SN 7.750 June 15, ’21 86.500 1.78 89.000 3.88 8.99
iShRussell2000Val IWN VangdFTSE EM VWO 44.56 0.88 –2.9
iShCoreMSCIEAFE IEFA 65.92 1.60 –0.3 Northern Oil And Gas NOG 8.000 June 1, ’20 97.000 1.75 n.a. 2.82 5.22
iShRussell3000 IWV 162.41 1.32 2.7 VangdFTSE Europe VGK 58.15 1.80 –1.7
iShCoreMSCIEmgMk IEMG 55.47 0.93 –2.5
iShRussellMid-Cap IWR 212.65 1.22 2.2 VangdFinls VFH 69.67 1.84 –0.5 Wind Tre SpA WINTRE 5.000 Jan. 20, ’26 79.750 1.75 78.750 ... ...
iShCoreMSCITotInt IXUS 62.55 1.31 –0.8 88.63 –0.6
iShRussellMCValue IWS 1.42 VangdFTSEAWxUS VEU 53.81 1.20 –1.7
iShCoreS&P500 IVV 274.55 1.34 2.1 227.02 1.18 5.2
iShS&PMC400Growth IJK VangdGrowth VUG 149.20 1.13 6.1
iShCoreS&P MC IJH 196.97 1.55 3.8 iShS&P500Growth IVW 162.93 1.04 6.7 VangdHiDiv VYM 84.57 1.49 –1.2 …And with the biggest price decreases
iShCoreS&P SC IJR 83.72 1.41 9.0 iShS&P500Value IVE 111.12 1.57 –2.7 VangdIntermBd BIV 81.14 –0.41 –3.2
iShS&PTotlUSStkMkt ITOT 62.80 1.31 2.7 iShUSPfdStk PFF 37.25 0.08 –2.2 VangdIntrCorpBd VCIT 83.90 –0.45 –4.0 AmeriGas Partners APU 5.875 Aug. 20, ’26 97.750 –2.13 n.a. 40.87 0.20
iShCoreUSAggBd AGG 106.55 –0.25 –2.5 iShShortTreaBd SHV 110.40 –0.02 0.1 VangdLC VV 125.32 1.27 2.2 United Continental Holdings UAL 5.000 Feb. 1, ’24 96.688 –2.06 96.650 69.80 0.40
iShSelectDividend DVY 98.36 1.30 –0.2 iShTIPSBondETF TIP 112.41 –0.19 –1.5 VangdMC VO 158.21 1.22 2.2
iShEdgeMSCIMinEAFE EFAV 73.67 0.99 0.9 iSh1-3YTreasuryBd SHY 83.50 –0.12 –0.4 VangdMC Val VOE 111.10 1.20 –0.4
Bacardi BACARD 5.300 May 15, ’48 95.686 –1.43 95.466 ... ...
iShEdgeMSCIMinUSA USMV 52.96 1.22 0.3 iSh7-10YTreasuryBd IEF 102.56 –0.43 –2.9 VangdRealEst VNQ 79.16 1.36 –4.6 SESI SPN 7.125 Dec. 15, ’21 101.000 –1.00 102.095 … …
iShEdgeMSCIUSAMom MTUM 111.23 1.36 7.9 iSh20+YTreasuryBd TLT 121.42 –0.67 –4.3 VangdS&P500 VOO 250.41 1.32 2.1
iShFloatingRateBd FLOT 51.03 0.03 0.4 iShRussellMCGrowth IWP 127.42 1.21 5.6 VangdST Bond BSV 78.36 –0.17 –0.9 Watco WATCOS 6.375 April 1, ’23 102.375 –0.88 103.125 ... ...
iShGoldTr IAU 12.49 0.08 –0.2 PIMCOEnhShMaturity MINT 101.66 –0.02 0.1 VangdSTCpBd VCSH 78.41 –0.10 –1.1 Ritchie Bros. Auctioneers RBACN 5.375 Jan. 15, ’25 97.250 –0.79 n.a. ... ...
iShiBoxx$InvGrCpBd LQD 115.54 –0.39 –5.0 PwrShQQQ 1 QQQ 170.18 0.72 9.3 VangdSC VB 156.35 1.43 5.8
iShiBoxx$HYCpBd HYG 85.46 0.31 –2.1 PwrShS&P500EW RSP 102.21 1.33 1.2 VangdTotalBd BND 79.44 –0.30 –2.6
Alpha 2 ALPTHR 8.750 June 1, ’23 99.250 –0.75 n.a. ... ...
iShJPMUSDEmgBd EMB 109.29 –0.03 –5.9 PwrShSrLoanPtf BKLN 23.03 0.09 –0.0 VangdTotIntlBd BNDX 54.44 0.17 0.1 Bristow BRS 6.250 Oct. 15, ’22 77.625 –0.75 86.250 11.77 –6.14
iShMBSETF MBB 104.39 –0.14 –2.1 SPDR BlmBarcHYBd JNK 35.67 0.37 –2.9 VangdTotIntlStk VXUS 56.09 1.30 –1.3
iShMSCI ACWI ACWI 72.74 1.31 0.9 SPDR Gold GLD 123.37 0.15 –0.2 VangdTotalStk VTI 141.01 1.29 2.7 *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.
iShMSCIBrazil EWZ 35.68 0.99 –11.8 SchwabIntEquity SCHF 33.78 1.32 –0.9 VangdTotlWrld VT 74.74 1.30 0.6 Note: Data are for the most active issue of bonds with maturities of two years or more
iShMSCI EAFE EFA 69.84 1.53 –0.7 SchwabUS BrdMkt SCHB 66.29 1.30 2.7 VangdValue VTV 105.16 1.44 –1.1 Sources: MarketAxess Corporate BondTicker; WSJ Market Data Group
 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.

THE WALL STREET JOURNAL. Thursday, May 31, 2018 | B9

BIGGEST 1,000 STOCKS

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
The following explanations apply to NYSE, NYSE s-New 52-week high. DiscoveryC DISCK 19.94 -0.47 Graco GGG 46.47 0.85 LKQ LKQ 31.21 0.63 Nordson NDSN 128.41 0.88 SAP SAP 112.40 2.11 Trimble TRMB 34.18 -0.24
Arca, NYSE American and Nasdaq Stock Market t-New 52-week low. Disney DIS 99.98 0.29 Grainger GWW 307.46 4.54 LPL Financial LPLA 68.99 1.02 Nordstrom JWN 49.00 0.04 S&P Global SPGI 199.52 2.32 s TripAdvisor TRIP 50.75 0.86
listed securities. Prices are composite quotations dd-Indicates loss in the most recent four s DocuSign DOCU 49.99 1.56 GreatPlainsEner GXP 34.10 0.44 L3 Tech LLL 199.03 3.15 NorfolkSouthern NSC 154.84 3.20 SBA Comm SBAC 158.97 0.27 TurkcellIletism TKC 7.01 -0.07
that include primary market trades as well as quarters. DolbyLab DLB 62.56 0.74 Grifols GRFS 22.15 0.34 LabCpAm LH 183.08 2.97 NorthernTrust NTRS 103.72 1.42 SEI Investments SEIC 65.13 1.16 21stCenturyFoxA FOXA 38.66 0.01
trades reported by Nasdaq BX (formerly Boston), FD-First day of trading. DollarGeneral DG 96.52 0.28 GrubHub GRUB 107.54 6.41 LamResearch LRCX 201.83 1.55 NorthropGrum NOC 331.57 5.09 Sina SINA 89.97 -0.02 21stCenturyFoxB FOX 38.25 ...
Chicago Stock Exchange, Cboe, NYSE National and h-Does not meet continued listing
DollarTree DLTR 96.35 1.45 GpoAvalAcc AVAL 8.53 0.22 LamarAdv LAMR 69.60 0.98 NorwegCruise NCLH 52.77 -0.04 SINOPEC SHI 71.93 1.98 Twitter TWTR 34.36 0.32
Nasdaq ISE. standards
The list comprises the 1,000 largest companies lf-Late filing DominionEner D 64.52 0.18 GpoFinGalicia GGAL 41.98 0.78 LambWeston LW 65.00 0.44 Novartis NVS 75.73 0.77 SK Telecom SKM 23.00 -0.20 TylerTech TYL 230.94 3.75
based on market capitalization. q-Temporary exemption from Nasdaq Domino's DPZ 251.70 5.90 GrupoTelevisa TV 16.91 -0.16 s LasVegasSands LVS 80.26 0.68 NovoNordisk NVO 47.56 0.76 SLGreenRealty SLG 97.25 1.63 TysonFoods TSN 70.52 0.13
Underlined quotations are those stocks with requirements. Donaldson DCI 47.62 0.74 s Guidewire GWRE 93.20 -0.70 Lazard LAZ 51.80 0.35 Nucor NUE 64.10 1.38 SS&C Tech SSNC 49.81 -0.22 UBS Group UBS 15.39 0.18
large changes in volume compared with the t-NYSE bankruptcy DouglasEmmett DEI 38.51 0.80 HCA Healthcare HCA 104.90 1.62 Lear LEA 198.25 2.20 Nutanix NTNX 54.39 2.46 SVB Fin SIVB 314.98 7.99 UDR UDR 36.44 0.90
issue’s average trading volume. v-Trading halted on primary market. Dover DOV 78.76 1.36 HCP HCP 23.97 0.27 Leidos LDOS 60.59 0.80 Nutrien NTR 51.10 1.03 Sabre SABR 24.44 0.28 UGI UGI 51.10 0.69
Boldfaced quotations highlight those issues vj-In bankruptcy or receivership or being DowDuPont DWDP 64.79 1.23 HDFC Bank HDB 105.17 8.35 Lennar A LEN 52.50 -0.79 NVIDIA NVDA 252.99 4.40 SageTherap SAGE 154.54 2.72 s US Foods USFD 36.11 0.55
whose price changed by 5% or more if their reorganized under the Bankruptcy Code, DrPepperSnap DPS 120.63 0.74 HD Supply HDS 40.42 0.27 Lennar B LEN.B 42.11 -0.86 s Salesforce.com CRM 129.30 2.42 UbiquitiNetworks UBNT 83.27 2.42
previous closing price was $2 or higher. or securities assumed by such companies. Dropbox DBX 30.47 0.69 HP HPQ 22.16 0.86 LennoxIntl LII 207.65 1.02 O P Q Sanofi SNY 38.59 0.74 UltaBeauty ULTA 253.48 -0.21
DukeEnergy DUK 76.98 0.38 HSBC HSBC 48.64 0.48 LibertyBroadbandA LBRDA 69.20 -0.53 SantanderCons SC 17.85 -1.24 UltSoftware ULTI 264.26 1.63
OGE Energy OGE 35.09 0.62
Wall Street Journal stock tables reflect composite regular trading as of 4 p.m. and DukeRealty DRE 28.32 0.33 Halliburton HAL 50.41 0.65 LibertyBroadbandC LBRDK 69.67 -0.22 s SareptaTherap SRPT 94.44 1.99 UltraparPart UGP 13.39 -0.01
ONEOK OKE 68.23 1.93
changes in the closing prices from 4 p.m. the previous day. ENI E 36.18 1.44 Hanesbrands HBI 18.60 0.28 LibertyGlobal C LBTYK 27.90 0.43 Sasol SSL 36.45 0.18 UnderArmour A UAA 21.40 0.74
OReillyAuto ORLY 273.56 4.41 Schlumberger SLB 69.48 1.41
EOG Rscs EOG 119.76 3.55 HarleyDavidson HOG 41.99 ... LibertyGlobal A LBTYA 28.71 0.24 UnderArmour C UA 19.20 0.63
OccidentalPetrol OXY 84.07 2.24 SchwabC
EPAM Systems EPAM 124.36 2.28 Harris HRS 152.75 1.89 t LibertyGlobal B LBTYB 28.00 -0.70 s SCHW 56.01 0.87 Unilever UN 56.66 1.07
Wednesday, May 30, 2018 Net Net OldDomFreight ODFL 158.42 3.72 Seagate STX 58.03 0.78
EQT EQT 51.23 1.76 HartfordFinl HIG 53.21 1.36 LibertyFormOne C FWONK 31.22 0.20 Unilever UL 56.06 0.90
Net Stock Sym Close Chg Stock Sym Close Chg OldRepublic ORI 21.20 0.14 SealedAir
E*TRADE ETFC 63.63 1.36 Hasbro HAS 86.81 -0.17 LibertyFormOne A FWONA 30.00 0.18 SEE 44.80 0.26 s UnionPacific UNP 146.14 2.82
Stock Sym Close Chg OmegaHealthcare OHI 30.79 0.43 SeattleGenetics SGEN 56.78 1.24
AtmosEnergy ATO 89.98 1.59 Canon CAJ 34.16 0.10 EXACT Sci EXAS 58.58 5.86 Heico A HEI.A 76.00 0.50 LibertyBraves A BATRA 25.28 ...
Omnicom OMC 71.25 1.03 SemicondctrMfg SMI UnitedContinental UAL 69.80 0.28
Autodesk ADSK 129.37 -0.25 CapitalOne COF 93.21 1.55 EastWestBncp EWBC 70.48 1.36 Heico HEI 93.28 0.09 LibertyBraves C BATRK 25.29 -0.05 6.52 0.14 s UnitedMicro UMC 2.76 0.06
A B C s Autohome ATHM 109.07 6.45 CardinalHealth CAH 52.46 0.71 EastmanChem EMN 104.75 0.53 Helm&Payne HP 67.26 0.94 LibertySirius C LSXMK 45.83 0.02
ON Semi
OpenText
ON 25.58 0.11
SempraEnergy SRE 106.24
OTEX 34.80 0.57 ServiceCorp SCI
0.45 UPS B UPS 116.69 2.86
Eaton ETN 77.91 0.97 HenrySchein HSIC 71.60 1.60 LibertySirius A LSXMA 45.87 0.12 Oracle 37.30 0.45 UnitedRentals URI 162.37 1.91
ABB ABB 23.11 0.19 Autoliv ALV 143.29 0.07 Carlisle CSL 108.55 1.04 ORCL 47.05 0.79 ServiceMaster SERV 57.44
EatonVance EV 54.79 0.64 Hershey HSY 91.60 0.01 LibertyProperty LPT 43.79 0.65 Orange 0.22 US Bancorp USB 49.84 0.98
s AES AES 12.67 0.26 s ADP ADP 130.63 0.70 Carlyle CG 21.85 0.15 ORAN 17.22 0.21 ServiceNow NOW 178.47
eBay EBAY 37.85 0.32 Hess HES 60.96 1.53 EliLilly LLY 83.86 1.42 OrbitalATK 2.17 US Steel X 36.25 1.03
Aflac AFL 45.56 0.99 AutoZone AZO 653.78 24.46 CarMax KMX 69.25 0.98 OA 133.68 0.02 ShawComm B SJR 20.32
Ecolab ECL 144.03 2.28 HewlettPackard HPE 15.57 0.19 LincolnNational LNC 67.10 1.63 Orix 0.24 UnitedTech UTX 126.20 1.09
AGNC Invt AGNC 19.26 0.27 Avalonbay AVB 165.86 4.39 Carnival CCL 62.88 0.33 IX 84.40 -0.24 SherwinWilliams SHW 385.25
Ecopetrol EC 21.78 0.78 Hexcel HXL 71.28 0.72 LiveNationEnt LYV 43.33 0.42 OwensCorning OC -2.72 UnitedHealth UNH 244.94 2.77
ANGI Homesvcs ANGI 15.33 0.10 Avangrid AGR 53.10 -0.11 Carnival CUK 64.73 0.35 64.80 -0.37 ShinhanFin
EdisonInt EIX 62.27 -0.02 s Hill-Rom HRC 92.41 1.49 LloydsBanking LYG 3.41 0.04 PG&E SHG 41.96 -0.18 UniversalHealthB UHS 116.99 1.38
Ansys ANSS 162.89 1.30 AveryDennison AVY 106.89 0.71 Caterpillar CAT 155.46 1.84 PCG 43.09 0.75 Shire
EdwardsLife EW 137.45 1.52 Hilton HLT 81.73 1.40 LockheedMartin LMT 321.04 3.84 PNC Fin SHPG 164.19 -0.01 UnumGroup UNM 38.15 0.96
ASML ASML 197.10 1.50 AxaltaCoating AXTA 31.19 -0.44 Cavium CAVM 84.18 -0.67 PNC 144.31 3.06 Shopify
ElectronicArts EA 131.37 0.12 s HollyFrontier HFC 77.59 2.74 Loews L 48.78 0.79 POSCO SHOP 145.84 2.55 VEREIT VER 7.15 0.03
AT&T T 32.57 0.24 BB&T BBT 53.09 0.62 CboeGlobalMkts CBOE 99.02 -2.97 PKX 80.71 1.71 SignatureBank SBNY 129.24
EmersonElec EMR 71.65 0.88 Hologic HOLX 39.02 0.44 LogitechIntl LOGI 40.90 0.72 PPG Ind 1.52 VF VFC 81.75 0.43
AbbottLabs ABT 62.07 0.77 BCE BCE 42.09 0.33 Celanese A CE 114.95 0.85 PPG 101.43 0.39 SimonProperty SPG 161.59
Enbridge ENB 31.13 0.53 HomeDepot HD 187.09 3.12 Lowe's LOW 97.42 1.64 PPL 1.84 VICI Prop VICI 19.95 0.01
AbbVie ABBV 103.01 3.54 BHPBilliton BHP 49.43 1.29 Celgene CELG 77.97 0.14 PPL 27.34 0.31 s SiriusXM
Encana ECA 12.97 0.48 HondaMotor HMC 31.53 -0.20 lululemon LULU 105.63 -0.05 PTC SIRI 7.12 0.14 Visa V 130.64 0.95
Abiomed ABMD 388.57 1.17 BHPBilliton BBL 45.32 1.25 Cemex CX 5.96 -0.01 PTC 86.01 1.04 Skyworks
s EncompassHealth EHC 65.46 1.41 Honeywell HON 150.44 2.24 LyondellBasell LYB 113.88 2.43 PVH SWKS 99.78 0.34 s VailResorts MTN 243.14 2.48
Accenture ACN 156.03 2.49 BOK Fin BOKF 102.27 1.84 CenovusEnergy CVE 10.55 0.19 PVH 155.50 0.39 SmithAO
EnelAmericas ENIA 10.02 0.10 HormelFoods HRL 37.17 0.66 AOS 64.44 0.56 Vale VALE 13.54 0.10
BP BP 45.71 1.17 Centene CNC 118.81 1.90 Paccar PCAR 64.27 0.76 Smith&Nephew SNN 36.40
ActivisionBliz ATVI 70.69
s AdobeSystems ADBE 247.40
0.05
5.21 BT Group BT 13.68 0.08 CenterPointEner CNP 26.12 0.28 EnelGenChile EOCC 22.20 0.11 DR Horton DHI 42.39 -0.64 M N PackagingCpAm PKG 118.42 0.18 Smucker
0.28 ValeantPharm VRX 22.18 0.43
Energen EGN 68.24 1.60 s HostHotels HST 21.82 0.30 SJM 108.59 -0.09 s ValeroEnergy VLO 122.21 2.74
AdvanceAuto AAP 128.53 4.57 BWX Tech BWXT 67.49 0.24 CenturyLink CTL 18.31 0.09 M&T Bank MTB 174.13 2.39 PacWestBancorp PACW 53.90 0.93 Snap
EnergyTransferEq ETE 17.39 0.59 HuanengPower HNP 29.50 -0.50 SNAP 10.97 0.42 VarianMed VAR 118.75 1.31
AdvMicroDevices AMD 13.82 0.46 Baidu BIDU 241.63 -0.42 Cerner CERN 60.17 0.70 MGM Resorts MGM 31.89 0.59 PagSeguroDig PAGS 33.67 1.85 SnapOn
EnergyTransfer ETP 19.14 0.67 Hubbell HUBB 110.12 2.31 SNA 150.31 0.95 Vectren VVC 70.68 0.43
Aegon AEG 6.25 0.12
BakerHughes BHGE 35.69 0.82 CharterComms CHTR 266.94 0.58 MKS Instrum MKSI 114.80 1.10 s PaloAltoNtwks PANW 209.67 1.82 SOQUIMICH SQM 51.48
Entergy ETR 80.32 0.70 Humana HUM 296.38 4.02 0.77 Vedanta VEDL 14.83 0.46
AerCap AER 55.60 0.49
Ball BLL 37.67 0.08 CheckPoint CHKP 96.95 0.46 MPLX MPLX 36.07 0.42 s ParkHotels PK 32.01 0.45 Sony
EnterpriseProd EPD 28.63 0.45 s JBHunt JBHT 129.41 2.02 SNE 47.21 0.61 VeevaSystems VEEV 76.95 1.14
Aetna AET 177.87 1.09
BancoBilbaoViz BBVA 6.89 0.20 Chemours CC 49.94 0.16 MSCI MSCI 161.99 3.11 ParkerHannifin PH 175.20 2.47 Southern
Equifax EFX 114.52 0.61 HuntingtonBcshs HBAN 14.86 SO 44.74 0.44 Ventas VTR 54.81 0.71
AffiliatedMgrs AMG 160.86 3.63
BancodeChile BCH 93.58 1.13 s CheniereEnergy LNG 66.98 3.67 0.42
Macerich MAC 56.15 0.83 ParsleyEnergy PE 30.06 0.96 SoCopper
Equinix EQIX 401.29 5.19 HuntingIngalls HII 222.69 3.25 SCCO 49.34 1.02 s VeriSign VRSN 130.74 1.85
AgilentTechs A 62.69 0.84
BcoSantChile BSAC 33.02 0.78 s CheniereEnerPtrs CQP 35.94 0.91 s Macy's M 35.58 0.75 Paychex PAYX 65.96 0.35 SouthwestAir LUV 51.33 -0.16
BcoSantMex BSMX 6.52 0.24 s CheniereEnHldgs CQH 30.15 1.45 Equinor EQNR 25.92 0.90 Huntsman HUN 32.74 0.42 VeriskAnalytics VRSK 107.08 1.62
AgnicoEagle AEM 45.35 0.37 MadisonSquGarden MSG 264.67 1.44 PaycomSoftware PAYC 105.02 0.97 SpectraEnerPtrs SEP 30.28 0.24
BancoSantander SAN 5.47 0.16 Chevron CVX 125.16 3.77 EquityLife ELS 90.60 1.15 HyattHotels H 82.02 2.27 Verizon VZ 48.60 0.40
AirProducts APD 163.03 1.23 MagellanMid MMP 69.72 1.24 PayPal PYPL 81.60 0.87 SpiritAeroSys SPR 85.35 0.83
BanColombia CIB 46.59 0.30 ChinaEastrnAir CEA 38.30 -0.06 EquityResdntl EQR 63.82 1.96 IAC/InterActive IAC 153.97 2.99 VertxPharm VRTX 156.64 1.40
AkamaiTech AKAM 76.08 0.26 MagnaIntl MGA 64.48 1.19 Pearson PSO 11.94 0.09 Splunk SPLK 111.50 3.08
BankofAmerica BAC 29.49 0.53 ChinaLifeIns LFC 13.83 0.11 EssexProp ESS 241.30 6.90 ICICI Bank IBN 8.53 0.13 PembinaPipeline PBA 34.97 1.12 Spotify Viacom B VIAB 27.19 0.32
AlaskaAir ALK 60.28 -0.29 Manpower MAN 92.76 1.28 SPOT 156.38 1.76
BankofMontreal BMO 77.48 0.93 t ChinaMobile CHL 44.66 -0.51 EsteeLauder EL 151.19 1.44 s ICU Medical ICUI 294.15 3.65 Viacom A VIA 31.65 0.35
Albemarle ALB 93.59 0.56 ManulifeFin MFC 18.91 0.35 Pentair PNR 44.72 0.55 Sprint S 5.22 0.09
BankNY Mellon BK 55.40 0.21 ChinaPetrol SNP 94.57 2.54 EverestRe RE 225.51 0.79 IdexxLab IDXX 209.08 3.83 Vipshop VIPS 11.79 0.17
Alcoa AA 48.54 1.24 MarathonOil MRO 21.53 0.85 People'sUtdFin PBCT 18.61 0.29 Square SQ 57.91 0.99
BkNovaScotia BNS 60.43 1.30 ChinaSoAirlines ZNH 48.77 -0.47 EversourceEner ES 57.14 0.33 IHSMarkit INFO 49.41 0.03 VirtuFinancial VIRT 31.40 0.30
AlexandriaRlEst ARE 125.33 0.94 MarathonPetrol MPC 79.55 1.94 PepsiCo PEP 101.83 0.73 StanleyBlackDck SWK 144.02 1.66 s VistraEnergy VST 24.27
BankofOzarks OZRK 48.03 0.82 ChinaTelecom CHA 45.61 0.10 Exelixis EXEL 20.81 0.50 ING Groep ING 14.76 0.37 0.26
AlexionPharm ALXN 116.48 0.75 Markel MKL 1114.11 3.06 PerkinElmer PKI 74.40 0.74 Starbucks SBUX 57.48 0.25
Barclays BCS 10.74 0.16 ChinaUnicom CHU 13.62 -0.10 Exelon EXC 41.22 0.51 Invesco IVZ 27.48 0.40 VMware VMW 138.02 1.62
Alibaba BABA 197.98 -0.02 MarketAxess MKTX 216.15 5.21 Perrigo PRGO 75.94 1.74 StateStreet STT 97.42 2.34
BarrickGold ABX 13.38 0.08 Expedia EXPE 118.01 0.75 IPG Photonics IPGP 245.97 -2.65 Vodafone VOD 26.17 0.26
s AlignTech ALGN 331.45 5.27 Chipotle CMG 436.61 3.60 Marriott MAR 136.27 1.72 s PetroChina PTR 83.10 2.33 SteelDynamics STLD 49.89 1.23
BaxterIntl BAX 71.87 0.14 Chubb CB 132.31 2.39 s ExpeditorsIntl EXPD 75.38 2.01 IQVIA IQV 100.48 1.30 VornadoRealty VNO 69.44 1.98
Alkermes ALKS 47.90 1.39 Marsh&McLen MMC 80.77 1.68 PetroleoBrasil PBR 11.92 ... s Steris STE 104.57 0.60
BectonDicknsn BDX 223.52 3.61 ChunghwaTel CHT 36.14 0.11 ExpressScripts ESRX 76.21 0.12 IcahnEnterprises IEP 69.28 1.04 VoyaFinancial VOYA 52.11 1.64
Alleghany Y 574.89 10.30 MartinMarietta MLM 220.78 1.05 PetroleoBrasilA PBR.A 10.19 -0.14 STMicroelec STM 23.71 0.78
BeiGene BGNE 194.79 2.34 Church&Dwight CHD 48.13 0.52 s ExtraSpaceSt EXR 96.94 1.29 Icon ICLR 125.90 2.44 VulcanMatls VMC 127.78 0.56
Allegion ALLE 79.21 0.94 MarvellTech MRVL 21.99 0.05 Pfizer PFE 36.05 0.35 Stryker SYK 175.07 2.73
Berkley WRB 76.96 1.67 Cigna CI 173.32 0.74 ExxonMobil XOM 81.50 3.08 IDEX IEX 140.59 2.69
Allergan AGN 151.52 0.49 Masco MAS 38.16 0.61 PhilipMorris PM 80.32 1.05 SumitomoMits SMFG 8.33 0.08 W X Y Z
BerkHathwy B BRK.B 194.10 4.23 CimarexEnergy XEC 94.86 3.89 F5Networks FFIV 173.16 0.41 IllinoisToolWks ITW 145.73 1.71
AllianceData ADS 213.30 3.41 Mastercard MA 191.76 2.23 Phillips66 PSX 119.18 2.37 s SunComms SUI 96.71 1.65
BerkHathwy A BRK.A 2920005999.99 CincinnatiFin CINF 70.10 1.59 FMC FMC 88.37 1.04 s Illumina ILMN 272.39 6.07
AlliantEnergy LNT 41.44 0.44 MatchGroup MTCH 41.77 0.93 PinnacleFoods PF 64.16 0.46 SunLifeFinancial SLF 41.60 0.72 WABCO WBC 122.88 0.51
BerryGlobal BERY 49.45 1.01 Cintas CTAS 183.15 2.53 Facebook FB 187.67 1.93 ImperialOil IMO 33.17 0.92
AllisonTransm ALSN 42.15 0.03 MaximIntProducts MXIM 58.70 0.25 PinnacleWest PNW 79.82 0.93 SuncorEnergy SU 40.13 1.15 WEC Energy WEC 63.40 0.54
BestBuy BBY 69.60 1.42 CiscoSystems CSCO 42.85 -0.12 FactSet FDS 202.12 2.27 Incyte INCY 67.87 0.81
Allstate ALL 94.37 0.59 McCormick MKC 104.02 1.07 PioneerNatRscs PXD 196.62 5.74 SunTrustBanks STI 67.61 1.74 WEX WEX 176.56 2.48
Bio-RadLab A BIO 290.89 4.83 Citigroup C 66.68 0.97 Fastenal FAST 52.68 0.18 Infosys INFY 18.14 0.14
AllyFinancial ALLY 25.75 -0.31 McCormickVtg MKC.V 103.77 0.90 PlainsAllAmPipe PAA 23.52 0.52 Symantec SYMC 21.05 0.03 W.P.Carey WPC 67.11 0.50
Biogen BIIB 294.40 7.31 CitizensFin CFG 40.44 1.03 FederalRealty FRT 119.38 2.33 Ingersoll-Rand IR 89.66 0.82
AlnylamPharm ALNY 100.46 0.40 McDonalds MCD 161.82 1.20 PlainsGP PAGP 24.54 0.76 SynchronyFin SYF 35.02 0.55 WPP WPP 82.54 0.79
BioMarinPharm BMRN 90.60 0.06 CitrixSystems CTXS 106.61 0.62 FedEx FDX 253.08 5.47 Ingredion INGR 114.06 0.31
Alphabet C GOOG 1067.80 7.48 McKesson MCK 144.43 3.21 PolarisIndustries PII 113.14 -1.74 Synopsys SNPS 87.50 -0.28 WPX Energy WPX 18.38 0.64
BlackKnight BKI 50.40 0.60 Clorox CLX 126.09 1.95 Ferrari RACE 130.25 3.23 s Intel INTC 55.68 0.36
Alphabet A GOOGL 1077.47 9.40 Medtronic MDT 85.89 0.50 Pool POOL 144.21 0.76 SynovusFin SNV 54.50 1.08 Wabtec WAB 98.37 1.51
BlackBerry BB 11.90 0.17 Coca-Cola KO 43.13 0.45 FiatChrysler FCAU 22.21 1.29 InteractiveBrkrs IBKR 74.52 0.45
Altaba AABA 77.03 0.23 MelcoResorts MLCO 32.28 0.49 Praxair PX 156.49 3.18 s Sysco SYY 66.05 0.90 WalgreensBoots WBA 63.54 0.84
BlackRock BLK 534.29 10.03 Coca-Cola Euro CCE 38.11 0.14 FibriaCelulose FBR 18.76 0.06 ICE ICE 71.66 1.84
AlticeUSA ATUS 19.35 0.38 MercadoLibre MELI 302.27 4.56 PrincipalFin PFG 56.36 1.12 Walmart WMT 84.12 1.72
Blackstone BX 31.73 0.31 FidNatlFin FNF 37.96 0.17 InterContinentl IHG 64.83 0.87 T U V

.
Altria MO 56.59 0.86 Coca-Cola Femsa KOF 57.98 0.48 Merck MRK 59.72 1.32 Procter&Gamble PG 74.89 0.84 s WasteConnections WCN 77.37 1.23
BlockHR HRB 28.10 0.16 FidNatlInfo FIS 103.26 0.88 IBM IBM 142.62 1.40
AlumofChina ACH 12.77 -0.18 bluebirdbio BLUE 182.80 -3.40
Cognex CGNX 46.41 -0.66 MetLife MET 46.25 1.09 s Progressive PGR 63.00 1.29 TAL Education TAL 42.45 -0.21
WasteMgt WM 83.85 1.20

ly
CognizantTech CTSH 75.69 1.28 FifthThirdBncp FITB 30.60 0.31 IntlFlavors IFF 124.81 0.70
Amazon.com AMZN 1624.89 12.02 Boeing MettlerToledo MTD 551.71 4.97 Prologis PLD 64.80 0.49 Waters WAT 193.67 2.74
Ambev ABEV 5.26 0.06
BA 358.19 5.71 ColgatePalm CL 64.39 0.83 58.com WUBA 79.83 0.75 IntlPaper IP 53.89 0.95
MichaelKors KORS 60.41 -7.81 Proofpoint PFPT 118.55 -1.41 TD Ameritrade AMTD 59.55 1.25
Watsco WSO 186.01 3.01
BookingHldgs BKNG 2098.00 21.97 s ColumbiaSportswr COLM 88.55 0.09 51job JOBS 108.09 1.99 Interpublic IPG 22.61 -0.03 TE Connectivity TEL 93.95 0.96
Amdocs DOX 68.49 1.20 s BoozAllen MicroFocus MFGP 17.81 0.47 PrudentialFin PRU 97.85 2.88 Telus Wayfair W 94.62 3.64
BAH 45.04 1.02 Comcast A CMCSA 31.48 -0.03 FirstAmerFin FAF 53.84 0.14 s Intuit INTU 201.10 4.40 TU 35.37 0.23
Amerco UHAL 356.57 3.38 BorgWarner BWA 49.47 0.99 MicrochipTech MCHP 97.51 2.28 Prudential PUK 48.50 0.64
Ternium TX 36.05 -0.02
Weibo WB 102.26 0.05
Comerica CMA 95.00 1.24 FirstData FDC 19.17 0.15 IntuitiveSurgical ISRG 459.66 5.03
Ameren AEE 59.39 0.56 BostonProps BXP 122.13 2.73
s MicronTech MU 62.57 -0.05 PublicServiceEnt PEG 52.69 0.06 TIM Part TSU 17.88 0.28
s WellCareHealth WCG 226.99 5.84
CommerceBcshrs CBSH 65.29 1.33 FirstHorizonNatl FHN 18.68 0.33 InvitatHomes INVH 22.42 0.54
t AmericaMovil A AMOV 15.50 s Microsoft MSFT 98.95 0.94 PublicStorage PSA 212.23 2.38 s TJX WellsFargo WFC 54.23 1.28
t AmericaMovil AMX 15.61
AmerAirlines AAL 43.30
AEP AEP 68.00
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0.38
BostonSci
Braskem
BSX 30.51 0.31
BAK 24.29 0.09
BrightHorizons BFAM 101.37 1.32
Bristol-Myers BMY 53.02 0.75
ConagraBrands CAG 37.75
ConchoRscs CXO 141.16
ConocoPhillips COP 68.05
ConEd ED
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76.33
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3.95
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FirstRepBank FRC 100.38 2.28 s iQIYI
FirstSolar
FirstEnergy FE
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34.23 0.17 IsraelChemicals ICL
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FSLR 69.04 -0.17 IronMountain IRM 33.50

FISV 72.75 1.12 ItauUnibanco ITUB 11.51

25.71

4.64
2.63
0.24
0.14
0.02
MidAmApt MAA 93.99 2.25
Middleby
MitsubishiUFJ MUFG 6.09 -0.01 Qorvo
MizuhoFin MFG 3.54 0.03 Qualcomm
PulteGroup
MIDD 101.58 -0.39 s Qiagen
PHM 30.25 -0.43
QGEN 36.88 0.58 T-MobileUS
QRVO 80.93 0.99 TRowePrice TROW 122.29
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QCOM 58.39 0.16 TableauSftwr DATA 99.36
TJX 89.78
TMUS 56.33
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3.56
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Welltower WELL 57.54
WestPharmSvcs WST 94.12
WestarEnergy WR 57.04
WestAllianceBcp WAL 60.84
0.51
1.91
0.84
0.94
AmerExpress AXP 98.99 1.27 BritishAmTob BTI 50.83 0.53 ConstBrands A STZ 224.84 5.10 FleetCorTech FLT 201.33 1.37
MobileTeleSys MBT 9.93 0.08 QuestDiag DGX 108.36 2.01 TaiwanSemi TSM 38.34 0.18
WesternDigital WDC 86.53 0.04
AmericanFin AFG 111.78 2.22 Broadcom AVGO 249.40 -0.29 ContinentalRscs CLR 67.93 2.53 Flex FLEX 14.11 ... J K L t QurateRetailB QRTEB 20.90 -0.10 TakeTwoSoftware TTWO 110.63 -0.15
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AmHomes4Rent AMH 19.99 0.32 BroadridgeFinl BR 116.18 2.00 MohawkInds MHK 208.57 -2.07 Tapestry TPR 43.96 0.17 WesternGasEquity WGP 36.49 0.98
MolsonCoors B TAP 62.35 0.79 t QurateRetailA QRTEA 20.61 -0.26 TargaResources TRGP 48.35
Cooper COO 229.73 5.23 FlirSystems FLIR 54.06 0.79 WesternGasPtrs WES 51.85 1.52
AIG AIG 53.07 0.89 BrookfieldMgt BAM 40.42 0.83 JD.com JD 35.80 -0.73 1.74
Copart CPRT 56.16 0.74 Fluor FLR 49.56 1.17 WesternUnion WU 19.95 0.25
AmerTowerREIT AMT 137.83 1.86 t BrookfieldInfr BIP 38.07 0.86 JPMorganChase JPM 108.35 2.42 MolsonCoors A TAP.A 62.79 -2.18
AmerWaterWorks AWK 84.21 0.29
Corning GLW 26.35 -0.21 FomentoEconMex FMX 83.95 2.00
JackHenry JKHY 123.83 1.79 Momo MOMO 43.13 -1.73
R S Target TGT 73.47 1.77
WestlakeChem WLK 118.94 1.02
Brown&Brown BRO 27.83 0.50 FootLocker FL TataMotors TTM 21.09 -0.09
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Ameriprise AMP 139.51 3.24 Brown-Forman B BF.B 57.76 1.05 JacobsEngg JEC 64.84 1.54 Mondelez MDLZ 39.68 0.35 RELX RENX 21.58 0.26 TechnipFMC FTI 31.92
Costco COST 199.64 2.90 FordMotor F 11.55 0.11
WestRock WRK 59.76 0.73
AmerisourceBrgn ABC 84.13 1.56 Brown-Forman A BF.A 56.00 1.12 JamesHardie JHX 16.93 0.61 Monsanto MON 127.51 0.10 RELX RELX 22.13 0.19 TeckRscsB TECK 27.27 1.06
t Coty COTY 13.59 0.27 s Fortinet FTNT 61.18 1.25
Ametek AME 74.71 1.10 BuckeyePtrs BPL 36.21 0.17 JanusHenderson JHG 31.59 0.60 MonsterBev MNST 51.96 2.67 RPM RPM 50.94 -0.29 TelecomArgentina TEO 21.90 -0.04 Weyerhaeuser WY 37.23 0.40
Credicorp BAP 220.77 2.63 Fortis FTS 32.41 0.26
Amgen AMGN 180.24 2.80 s JazzPharma JAZZ 168.48 2.93 Moody's MCO 173.42 2.61 RSP Permian RSPP 44.66 1.27 TelecomItalia A TI.A WheatonPrecMet WPM 21.87 0.33
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Bunge BG 70.35 0.69 CreditAcceptance CACC 353.11 3.66 Fortive FTV 74.19 0.17 7.22 0.23
Amphenol APH 87.57 0.59 BurlingtonStrs BURL 136.53 0.91 JefferiesFin JEF 22.21 0.02 MorganStanley MS 50.97 1.01 RalphLauren RL 136.31 1.05 TelecomItalia TI 8.24 0.18 Whirlpool WHR 149.24 -0.75
CreditSuisse CS 15.54 0.28 FortBrandsHome FBHS 57.42 0.62 Williams WMB 27.19 0.53
AnadarkoPetrol APC 70.49 3.19 CA CA 35.56 0.28 JetBlue JBLU 18.98 -0.22 Mosaic MOS 28.04 0.21 RandgoldRscs GOLD 78.49 1.58 s TeledyneTech TDY 204.05 6.04
CrownCastle CCI 104.02 0.56 Franco-Nevada FNV 70.72 0.35 WilliamsPartners WPZ 40.20 0.73
AnalogDevices ADI 94.98 0.59 CBD Pao CBD 21.13 0.75 J&J JNJ 120.97 1.57 MotorolaSol MSI 109.47 -0.21 RaymondJames RJF 97.73 2.00 Teleflex TFX 266.91 5.12
CrownHoldings CCK 44.16 -0.36 FranklinRscs BEN 33.69 0.86 WillisTowers WLTW 152.90 2.15
Andeavor ANDV 145.85 3.93 CBRE Group CBRE 47.08 0.49 JohnsonControls JCI 34.41 0.35 Mylan MYL 39.48 0.80 Raytheon RTN 212.32 3.29 Ericsson ERIC 7.26 0.05
Ctrip.com CTRP 45.14 -0.38 FreeportMcM FCX 17.12 0.47 Wipro WIT 4.55 -0.01
AndeavorLog ANDX 42.97 0.10 CBS A CBS.A 51.36 0.18 JonesLang JLL 164.39 0.98 NICE NICE 106.04 -0.94 RealtyIncome O 53.73 0.41 t TelefonicaBras VIV 12.09 0.19
Cullen/Frost CFR 115.58 2.31 FreseniusMed FMS 50.87 1.16 WooriBank WF 42.71 0.01
AB InBev BUD 94.15 1.81 CBS B CBS 51.23 0.96 JuniperNetworks JNPR 27.00 -0.12 NRG Energy NRG 34.41 0.69 RedHat RHT 164.38 1.45 Telefonica TEF 8.86 0.13
Cummins CMI 145.48 0.98 Workday WDAY 131.78 1.37
AnnalyCap NLY 10.62
AnteroResources AR
0.07 CDK Global CDK 64.85 1.04 CypressSemi CY 16.62 0.18 G H I KAR Auction KAR 53.47
KB Fin
0.60 NVR
NXP Semi
NVR 3058.10 -27.85 RegencyCtrs REG 58.41 0.41 TelekmIndonesia TLK 25.28 0.03
Worldpay WP 79.54 1.69
19.04 0.45 s CDW CDW 81.40 0.51 KB 48.79 -0.76 NXPI 115.58 -0.70 RegenPharm REGN 300.89 4.39 Tenaris TS 37.30 0.91
er rs

Anthem GGP GGP 20.64 0.14 KKR s Nasdaq Wyndham WYN 110.82 2.33
Aon
ANTM 231.58
AON 140.23
2.29
1.87
CF Industries CF 41.54 0.37 D E F Gallagher AJG 66.98 1.18 KLA Tencor KLAC 114.01
KKR 22.15 0.24
0.36
NDAQ 93.44 1.24 RegionsFin RF
NationalGrid NGG 58.59 0.12 ReinsGrp
18.42 0.31 Teradyne
RGA 150.50 2.01 Tesla
TER 38.57 0.11
WynnResorts WYNN 195.67 2.28
CGI Group GIB 61.37 1.05 TSLA 291.72 7.96
Apache APA 40.71 1.71 CH Robinson CHRW 89.43 1.50 DCP Midstream DCP 41.85 0.79 Gaming&Leisure GLPI 35.25 0.23 KT KT 13.15 0.08 NatlOilwell NOV 41.87 0.56 RelianceSteel RS 94.45 1.81 TevaPharm TEVA 21.65 0.11 XL Group XL 55.59 0.27
ApartmtInv AIV 40.82 1.03 CIT Group CIT 50.42 -0.38 DCT Industrial DCT 65.81 0.71 Gap GPS 28.88 0.59 KSCitySouthern KSU 110.67 0.77 NatlRetailProp NNN 41.33 0.12 RepublicSvcs RSG 68.34 1.27 TexasInstruments TXN 111.85 0.91 XPO Logistics XPO 109.31 2.18
ApolloGlbMgmt APO 31.48 0.08 CME Group CME 165.49 6.81 DISH Network DISH 29.93 -0.33 GardnerDenver GDI 33.39 0.78 Kellogg K 65.97 1.39 NektarTherap NKTR 80.60 2.77 ResMed RMD 102.57 1.47 Textron TXT 66.91 1.08 XcelEnergy XEL 45.61 0.36
Apple AAPL 187.50 -0.40 CMS Energy CMS 46.15 0.32 DTE Energy DTE 102.45 0.35 Garmin GRMN 60.90 0.46 KeyCorp KEY 19.65 0.45 NetApp NTAP 68.23 1.27 RestaurantBrands QSR 59.56 2.21 ThermoFisherSci TMO 210.95 1.98 Xerox XRX 27.78 0.03
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ApplMaterials AMAT 51.59 -0.43 CNA Fin CNA 47.69 0.65 DXC Tech DXC 92.67 2.68 Gartner IT 132.50 1.45 KeysightTechs KEYS 52.99 -0.04 Netease NTES 227.01 -3.29 RingCentral RNG 75.95 1.10 ThomsonReuters TRI 39.10 1.07 Xilinx XLNX 68.02 -0.21
Aptargroup ATR 93.96 0.65 CNH Indl CNHI 11.81 0.11 Danaher DHR 101.25 0.70 GeneralDynamics GD 204.04 2.23 KilroyRealty KRC 76.30 1.59 Netflix NFLX 353.54 3.81 RioTinto RIO 56.71 0.89 3M MMM 198.68 2.94 Xylem XYL 71.49 0.94
Aptiv APTV 96.47 0.26 CNOOC CEO 168.72 5.94 Darden DRI 88.97 0.89 GeneralElec GE 14.17 -0.01 KimberlyClark KMB 105.42 0.59 s Neurocrine NBIX 95.64 1.46 RobertHalf RHI 64.00 0.78 s Tiffany TIF 130.70 1.57 t YPF YPF 18.20 -0.60
AquaAmerica WTR 35.69 0.52 CPFLEnergia CPL 11.97 0.21 DaVita DVA 68.36 1.31 GeneralMills GIS 42.90 0.42 KimcoRealty KIM 15.39 0.27 NewOrientalEduc EDU 97.63 -0.64 Rockwell ROK 177.98 1.56 TimeWarner TWX 94.10 0.74 YY YY 115.42 8.33
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Aramark ARMK 39.10 0.59 CRH CRH 35.98 0.66 Deere DE 155.08 0.07 GeneralMotors GM 37.83 0.45 KinderMorgan KMI 16.56 0.52 NewResidInvt NRZ 18.09 -0.04 RockwellCollins COL 137.97 0.28 Toll Bros TOL 39.90 -1.03 Yandex YNDX 33.34 0.88
ArcelorMittal MT 32.23 0.63 s CSX CSX 65.64 1.64 DellTechs DVMT 81.04 0.49 Gentex GNTX 23.51 0.29 Knight-Swift KNX 41.10 1.29 NewellBrands NWL 24.78 0.18 RogersComm B RCI 47.46 0.46 Torchmark TMK 85.10 1.97 YumBrands YUM 82.51 0.60
ArchCapital ACGL 79.09 1.09 CVS Health CVS 65.99 1.19 DeltaAir DAL 54.31 0.08 GenuineParts GPC 91.69 1.33 Kohl's KSS 67.91 1.22 NewmontMin NEM 39.19 0.26 Rollins ROL 51.09 0.75 Toro TTC 60.22 -0.23 YumChina YUMC 39.41 0.91
ArcherDaniels ADM 44.28 0.49 CabotOil COG 22.69 0.74 DentsplySirona XRAY 45.45 -0.36 Gerdau GGB 3.94 -0.06 KoninklijkePhil PHG 41.70 0.46 NewsCorp A NWSA 15.40 0.32 RoperTech ROP 278.68 4.42 TorontoDomBk TD 58.78 0.84 ZTO Express ZTO 20.53 -0.29
Arconic ARNC 18.12 0.19 CadenceDesign CDNS 42.16 0.15 DeutscheBank DB 11.57 0.27 Gildan GIL 29.29 0.28 KoreaElcPwr KEP 15.47 -0.18 NewsCorp B NWS 15.88 0.32 RossStores ROST 78.90 1.66 Total TOT 60.59 2.06 ZayoGroup ZAYO 34.77 0.13
AristaNetworks ANET 251.65 -4.21 CaesarsEnt CZR 12.35 0.05 DevonEnergy DVN 41.93 1.04 GileadSciences GILD 67.69 0.36 KraftHeinz KHC 58.84 1.44 s NextEraEnergy NEE 165.27 1.54 RoyalBkCanada RY 75.23 0.80 TotalSystem TSS 86.25 1.21 ZebraTech ZBRA 156.13 2.14
ArrowElec ARW 75.36 1.00 CamdenProperty CPT 87.55 1.92 s DexCom DXCM 87.49 0.34 GSK GSK 40.67 0.88 Kroger KR 24.98 0.48 NielsenHoldings NLSN 30.09 0.35 RoyalBkScotland RBS 7.41 ... ToyotaMotor TM 127.23 0.53 Zendesk ZEN 56.13 -0.17
AspenTech AZPN 93.61 0.38 CampbellSoup CPB 34.53 0.28 Diageo DEO 146.06 0.34 GlobalPayments GPN 111.52 2.18 Kyocera KYO 60.57 0.31 Nike NKE 72.23 1.31 RoyalCaribbean RCL 106.05 0.27 TractorSupply TSCO 75.34 1.79 Zillow C Z 57.62 2.86
s GoDaddy
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AstraZeneca AZN 36.86 0.48 CIBC CM 87.72 1.04 DiamondbkEner FANG 122.80 1.80 GDDY 72.13 1.04 LATAMAirlines LTM 12.08 -0.20 NiSource NI 25.31 0.24 RoyalDutchA RDS.A 69.55 2.23 TransCanada TRP 42.08 0.69 Zillow A ZG 57.38 2.59
AthenaHealth ATHN 151.85 -0.34 CanNtlRlwy CNI 84.61 1.59 DigitalRealty DLR 108.02 1.00 Goldcorp GG 14.34 0.17 L Brands LB 36.18 0.82 NobleEnergy NBL 36.49 1.17 RoyalDutchB RDS.B 72.48 2.22 TransDigm TDG 335.82 2.65 ZimmerBiomet ZBH 110.65 1.38
t Athene ATH 45.42 0.58 CanNaturalRes CNQ 35.19 0.92 DiscoverFinSvcs DFS 73.98 1.17 GoldmanSachs GS 229.16 2.93 LG Display LPL 10.39 0.01 Nokia NOK 5.97 0.02 RoyalGold RGLD 89.65 1.02 TransUnion TRU 68.49 0.19 ZionsBancorp ZION 55.53 0.61
Atlassian TEAM 63.42 0.71 s CanPacRlwy CP 190.44 5.30 DiscoveryA DISCA 21.40 -0.50 t Goodyear GT 24.61 0.02 LINE LN 36.09 0.60 t NomuraHoldings NMR 5.20 0.02 Ryanair RYAAY 116.77 0.01 Travelers TRV 130.17 1.96 Zoetis ZTS 84.45 1.30

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
FoundationMed FMI 99.30 6.3 IntelligentSys INS 8.82 -1.8 MyovantSciences MYOV 24.91 2.7 Pluralsight PS 22.61 2.2 TPGPaceWt TPGH.WS 1.70 6.2 WGLHoldings WGL 88.68 0.2 CrossAmerPtrs CAPL 17.00 -1.0
The following explanations apply to the New York Stock Exchange, NYSE Arca, NYSE FranklinElec FELE 47.55 3.0 InterParfums IPAR 54.35 1.5 NVE NVEC 108.91 2.2 Potbelly PBPB 13.75 0.4 TableauSftwr DATA 99.64 1.4 WNS WNS 51.62 1.9 CustomersBncpPfdC CUBIpC 26.20 0.5
American and Nasdaq Stock Market stocks that hit a new 52-week intraday high or low Freshpet FRPT 23.20 0.9 Intricon IIN 32.40 -1.4 Nanometrics NANO 41.90 3.7 PrimoWater PRMW 17.10 1.4 TabulaRasaHlth TRHC 54.50 2.7 WSFS Financial WSFS 53.45 2.1 Daktronics DAKT 7.85 -18.6
in the latest session. % CHG-Daily percentage change from the previous trading session. Funko FNKO 10.23 1.4 Intuit INTU 201.59 2.2 Nasdaq NDAQ 94.33 1.3 Progressive PGR 63.28 2.1 TactileSystems TCMD 49.98 0.2 WashTrBcp WASH 61.06 1.4 Despegar.com DESP 22.26 -0.5
GenomicHealth GHDX 40.37 2.7 Investar ISTR 28.00 2.4 NatlBankHoldings NBHC 39.34 1.0 PureAcqnWt PACQW 1.32 5.6 TapImmune TPIV 5.20 24.1 WasteConnections WCN 77.69 1.6 DominionEnerMid DM 12.75 -1.5
GibraltarInds ROCK 40.60 0.8 iQIYI IQ 25.99 11.4 NationalCommerce NCOM 46.90 1.0 Q2Holdings QTWO 58.75 -0.1 TechTarget TTGT 27.11 2.8 WeisMarkets WMK 54.94 3.4 EXFO EXFO 3.30 2.5
Wednesday, May 30, 2018 GIIIApparel GIII 43.37 5.0 iRhythmTechs IRTC 77.67 4.1 NatlEnerSvs NESR 11.33 2.2 Qiagen QGEN 37.16 1.6 Teladoc TDOC 51.90 0.8 WellCareHealth WCG 232.04 2.6 Entercom ETM 7.00 ...
52-Wk % 52-Wk % 52-Wk % GlobusMedical GMED 56.07 2.4 IridiumComm IRDM 15.18 10.7 NavigantConsult NCI 24.96 1.9 RBB Bancorp RBB 30.48 2.6 TeledyneTech TDY 204.67 3.1 WescoAircraft WAIR 11.75 0.9 GWG GWGH 7.28 -2.4
Stock Sym Hi/Lo Chg Stock Sym Hi/Lo Chg Stock Sym Hi/Lo Chg GoDaddy GDDY 72.54 1.5 IridiumCommPfdB IRDMB 503.88 19.0 Neogen NEOG 76.94 3.0 REGENXBIO RGNX 54.45 7.0 TenetHealthcare THC 37.52 3.9 WhiteMtnIns WTM 914.35 0.5 Gogo GOGO 4.55 -7.0
GoldResource GORO 6.44 -2.1 JBG SMITH Prop JBGS 37.94 1.2 Neurocrine NBIX 96.86 1.6 RF Industries RFIL 7.17 4.0 Tennant TNC 81.40 0.8 Wiley B JW.B 68.28 1.7 Goodyear GT 24.40 0.1
CDW CDW 81.97 0.6 CryoPort CYRX 13.06 1.0 Graham GHM 26.44 2.2 JazzPharma JAZZ 169.00 1.8 Neurotrope NTRP 10.88 5.4 Rafael RFL 9.04 3.1 TetraTech TTEK 55.25 2.9 GreenlightCapRe GLRE 14.10 ...
Wiley A JW.A 68.70 1.6
Highs CSX
CTS
CSX
CTS
65.93
32.95
2.6
0.6
CyberArkSoftware CYBR
Cytosorbents CTSO
61.01
11.70
1.6
-0.4
GrandCanyonEduc LOPE 112.94 0.3 JohnsonOutdoors JOUT 78.32 3.0 NewRelic NEWR 102.32 0.8 Rayonier RYN 39.16 1.7 Tiffany TIF 132.00 1.2 WW Ent WWE 60.51 -0.4 HudbayMineralsWt HBM.WS 0.01 -41.1
AES AES 12.71 2.1 GreenSky GSKY 26.00 3.1 Kemper KMPR 80.05 3.0 NewparkResources NR 11.15 2.8 RegionsFinPfdA RFpA 25.89 0.2 TimberlandBncp TSBK 34.58 3.4 XO Group XOXO 32.93 2.2 InternetGold IGLD 2.75 -5.2
CAE CAE 21.33 4.8 DCPMidstrmPfdB DCPpB 25.12 0.5 GreentreeHospital GHG 18.24 5.8 KeyTronic KTCC 8.60 ... NewtekBusSvcs NEWT 20.19 1.0 Regis RGS 17.56 0.4 Transcat TRNS 18.80 2.5 25.34 0.3 InVivoTherap NVIV 6.16 2.7
XeniaHotels XHR
n-

AdobeSystems ADBE 248.56 2.2 CallawayGolf ELY 19.49 -0.3 DMC Global BOOM 46.50 3.2 GriffinIndlRealty GRIF 42.69 -1.4 Kforce KFRC 34.25 1.8 NextEraEnergy NEE 165.67 0.9 RenewableEnergy REGI 18.15 -0.8 Travelzoo TZOO 17.10 5.2 Zymeworks ZYME 22.07 7.0 KeyCorpPfdE KEYpI 26.81 -0.2
AdvDrainageSys WMS 30.15 5.1 CanPacRlwy CP 192.33 2.9 DXCTechWi DXCw 82.49 7.5 Guidewire GWRE 95.26 -0.7 Kirby KEX 93.85 3.4 NextEraEnergy NEP 45.41 1.8 RichardsonElec RELL 9.73 0.3 Tredegar TG 24.70 2.1 Zynga ZNGA 4.43 3.3 LibertyGlobal B LBTYB 28.00 -2.4
AgreeRealty ADC 53.77 0.1 CantelMedical CMD 130.92 1.7 DelekUS DK 55.76 3.5 HMN Fin HMNF 19.60 -0.5 LHC Group LHCG 77.10 1.5 Norbord OSB 43.13 3.0 RosettaStone RST 16.80 1.6 TriNet TNET 54.61 2.0 Marchex MCHX 2.52 -2.6
AlignTech ALGN 333.34 1.6
AlliedMotionTech AMOT 49.57 0.5
Carbonite
Care.com
CARB
CRCM
39.45
20.96
3.3
2.6
Descartes
DexCom
DSGX
DXCM
31.40
88.61
1.8
0.4
HMS Holdings HMSY
HUYA HUYA
22.00
25.87
1.9
11.2
LaQuinta
Lantronix
LQ
LTRX
21.74
3.19
5.1
3.6
Novocure
NuSkinEnts
NVCR
NUS
31.70
82.76
2.4
1.3
RudolphTech RTEC
RymanHospitality RHP
34.55
84.69
2.0
1.4
TrinityMergerUn TMCXU
TripAdvisor TRIP
10.15
50.98
1.0
1.7
Lows NatlRetailPropPfE NNNpE 23.40 0.5
NemauraMedical NMRD 2.76 0.3
Amedisys AMED 77.65 2.0 CareDx CDNA 12.50 8.0 DiamndrckHspty DRH 12.88 1.7 Ability ABIL 2.30 -3.3
Haemonetic HAE 92.56 1.3 LasVegasSands LVS 80.57 0.9 nVentElectric NVT 27.86 0.5 SPS Commerce SPSC 75.34 0.1 Triple-S Mgmt GTS 37.55 1.1 NomuraHoldings NMR 5.14 0.4
AmEqtyLf AEL 36.08 2.6 CareerEducation CECO 15.72 0.9 DocuSign DOCU 51.00 3.2 AchieveLifeSci ACHV 8.57 -2.8
HalyardHealth HYH 55.24 1.5 LaSalleHotel LHO 34.43 1.4 ONEOK OKE 68.41 2.9 StoreCapital STOR 27.23 0.9 TurningPoint TPB 27.10 3.9 PLDT PHI 24.29 -4.6
AngioDynamics ANGO 21.19 1.3
no

CarolinaFin CARO 43.73 1.8 DorchesterMnls DMLP 20.93 1.5 HamiltonLane HLNE 47.52 2.7 LibertyTripAdvB LTRPB 14.11 0.8 OceanFirstFin OCFC 29.65 1.9 SafetyInsurance SAFT 87.45 1.4 USA Tech USAT 14.00 3.4 Adtran ADTN 14.15 -3.7 PlatinumGrpMtls PLG 0.11 3.7
AppFolio APPF 59.40 1.2 CarpenterTech CRS 60.64 3.6 DouglasDynamics PLOW 47.55 2.5 AmeriWt AMRHW 0.12 78.0
HanoverIns THG 123.25 2.7 LilisEnergy LLEX 6.30 -0.7 OhioValleyBanc OVBC 52.45 2.9 Saia SAIA 84.45 2.5 US Ecology ECOL 61.65 2.2 PureAcqn PACQ 9.66 -0.3
ArborRealty ABR 9.59 ... Cato CATO 23.33 1.4 EVO Payments EVOP 20.81 3.6 HealthEquity HQY 78.10 1.6 103.03 0.6 55.48 3.2 132.55 1.9 36.23 1.5 AmericaMovil AMX 15.54 -0.3 7.64 1.4
Lindsay LNN Okta OKTA Salesforce.com CRM US Foods USFD Qudian QD
ArrowheadPharm ARWR 11.00 5.7 CavcoIndustries CVCO 206.00 13.2 EldoradoResorts ERI 45.95 0.9 HershaHospitality HT 21.11 1.7 LivePerson LPSN 19.55 0.8 OldDomFreight ODFL 159.76 2.4 Sanofi Rt GCVRZ 0.54 5.3 US PhysTherapy USPH 97.15 1.4 AmericaMovil A AMOV 15.47 -0.3 QurateRetailB QRTEB 20.69 -0.5
AscenaRetail ASNA 3.55 -1.5 Ceragon CRNT 3.35 0.9 EmclaireFin EMCF 35.77 0.3 Hill-Rom HRC 92.75 1.6 LonestarRscs LONE 7.50 8.5 Ollie'sBargain OLLI 71.70 0.5 SchneiderNatl SNDR 30.35 3.3 UltragenyxPharm RARE 72.65 4.6 Ardagh ARD 17.17 -3.7 QurateRetailA QRTEA 20.42 -1.2
AscendisPharma ASND 76.29 -0.9 Chegg CHGG 28.09 1.3 EnableMidstream ENBL 16.43 3.5 HollyFrontier HFC 78.65 3.7 Luminex LMNX 28.18 0.9 OneSmartIntlEduc ONE 15.41 11.4 ShakeShack SHAK 62.54 5.7 Unifirst UNF 178.48 1.4 AscentCapital A ASCMA 2.06 -2.8 ResearchFrontiers REFR 0.80 -4.2
AshfordHosp AHT 7.49 2.1 CheniereEnergy LNG 67.16 5.8 EncompassHealth EHC 65.68 2.2 HorizonBancorp HBNC 31.56 1.7 Luxfer LXFR 19.57 3.4 P&FIndustries PFIN 8.83 1.9 ShoeCarnival SCVL 33.87 2.3 UnionPacific UNP 147.07 2.0 Athene ATH 44.62 1.3 RestorationRob HAIR 3.10 -4.0
AslanPharm ASLN 9.51 34.5 CheniereEnerPtrs CQP 36.21 2.6 EnphaseEnergy ENPH 6.30 6.5 HorizonPharma HZNP 16.50 0.4 MSA Safety MSA 93.83 2.7 PBF Energy PBF 48.00 4.8 Sientra SIEN 18.24 1.5 UnitedMicro UMC 2.76 2.2 Atlanticus ATLC 1.52 14.1 RoadrunnerTrans RRTS 1.65 -1.1
AtlCapitalBcshs ACBI 21.25 0.7 CheniereEnHldgs CQH 30.22 5.1 EnsignGroup ENSG 37.20 2.6 HostHotels HST 21.97 1.4 MTGEInvestment MTGE 20.20 1.0 PGT Innovations PGTI 21.97 ... SiliconLab SLAB 108.45 1.3 UnivInsurance UVE 36.85 3.3 AvonProducts AVP 1.79 ... SandersonFarms SAFM 99.83 -3.0
Attunity ATTU 11.79 11.1 ChesapeakeLodging CHSP 32.41 2.1 EnterpriseBncp EBTC 41.38 5.2 JBHunt JBHT 130.35 1.6 MYR Group MYRG 39.83 1.9 PaloAltoNtwks PANW 211.29 0.9 SimmonsFirstNat SFNC 32.25 2.4 UplandSoftware UPLD 36.05 2.0 AzurRxBioPharma AZRX 2.25 -0.3 SearsHoldingsWt SHLDW 0.13 -50.0
Autohome ATHM 110.01 6.3 ChinaLodging HTHT 44.46 4.6 EraGroup ERA 13.36 0.9 Hurco HURC 50.50 3.6 Macatawa MCBC 12.24 3.3 ParkHotels PK 32.12 1.4 SimpsonMfg SSD 64.49 0.5 UrbanOne A UONE 4.20 88.6 BBVABancoFr BFR 14.38 -0.3 SharpsCompliance SMED 3.64 -0.5
ADP ADP 132.05 0.5 Cision CISN 15.12 -0.5 Everbridge EVBG 46.40 1.7 ICF Intl ICFI 71.65 2.5 Macy's M 36.00 2.2 ParkeBancorp PKBK 22.45 0.2 SiriusXM SIRI 7.15 2.0 VASCO VDSI 22.30 5.3 BRF BRFS 5.55 0.9 SocketMobile SCKT 2.50 -0.8
Balchem BCPC 98.98 1.2 CleanEnerFuels CLNE 3.17 8.4 Evertec EVTC 22.25 2.8 ICU Medical ICUI 295.25 1.3 MammothEnergy TUSK 40.39 -1.3 PatriotNatBncp PNBK 21.15 ... Smartsheet SMAR 23.79 0.4 VailResorts MTN 245.30 1.0 BlueknightEnPtrsA BKEPP 6.34 -1.9 SpeedwayMotor TRK 16.72 -0.6
Baozun BZUN 60.00 3.9 ClearsideBiomed CLSD 15.33 3.0 Evolus EOLS 28.47 -6.1 IEC Elec IEC 5.65 0.2 Masimo MASI 101.06 1.6 PeabodyEnergy BTU 43.76 3.2 SophirisBio SPHS 3.84 4.7 ValeroEnergy VLO 123.03 2.3 BrookfieldInfr BIP 37.27 2.3 StateStreetPfdD STTpD 26.02 0.2
Bilibili BILI 16.88 10.9 CoBizFin COBZ 22.28 2.7 ExpeditorsIntl EXPD 75.58 2.7 INTL FCStone INTL 49.51 1.6 Matlin&PtrsWt MPACW 0.60 1.0 PebblebrookHotel PEB 41.32 1.3 SpiritRealtyCap SRC 8.84 1.2 Validus VR 67.85 0.3 CLPS CLPS 4.76 -0.8 StellarBiotech SBOT 1.90 -3.9
BioCryst BCRX 6.62 3.7 Codexis CDXS 14.65 2.1 Exponent EXPO 99.40 2.3 Illumina ILMN 275.34 2.3 Medifast MED 147.48 1.8 PennyMacTr PMT 18.90 1.2 StaarSurgical STAA 30.00 1.4 VaronisSystems VRNS 78.30 0.1 CelldexTherap CLDX 0.62 -2.0 Synlogic SYBX 8.73 0.1
BioLifeSols BLFS 10.51 4.3 ColumbiaSportswr COLM 89.59 0.1 ExtraSpaceSt EXR 97.34 1.3 Immersion IMMR 14.78 5.5 MeritMedical MMSI 55.50 2.3 Penumbra PEN 162.50 1.0 Stamps.com STMP 253.45 0.9 VeriSign VRSN 130.89 1.4 CentraisElBrasPf EBR.B 4.15 -5.5 TESARO TSRO 44.22 -10.4
Blucora BCOR 39.10 -0.4 CommunityBkrs ESXB 10.00 ... ExtractionOil XOG 17.38 6.4 IndependentBank INDB 78.70 2.2 MicronTech MU 64.66 -0.1 People'sUtahBncp PUB 36.85 2.4 Steris STE 105.48 0.6 Vicor VICR 43.40 4.5 CheckpointTherap CKPT 3.05 -2.5 TOP Ships TOPS 0.87 -14.1
BoiseCascade BCC 48.53 0.1 CompassPfd CODIpB 24.49 -0.2 FTI Consulting FCN 63.57 0.7 IndepBankMI IBCP 26.00 2.0 Microsoft MSFT 99.25 1.0 Perficient PRFT 26.05 1.7 StevenMadden SHOO 54.00 0.8 VillageBank&Tr VBFC 34.09 2.5 ChinaMobile CHL 44.49 -1.1 TatTechnologies TATT 7.75 -1.5
BoozAllen BAH 45.35 2.3 CoreLogic CLGX 52.99 0.5 FairIsaac FICO 185.81 1.4 InfinityPropCas IPCC 147.90 1.9 Mimecast MIME 45.09 1.3 PerformanceFood PFGC 36.35 1.8 SunComms SUI 97.18 1.7 VillageSuper A VLGEA 30.31 -1.8 ChinaRapidFin XRF 2.88 -2.0 TelefonicaBras VIV 11.81 1.6
BostonBeer SAM 257.90 2.9 CornerstoneOnDem CSOD 50.12 2.3 FederatedNatl FNHC 24.03 2.8 InsightEnt NSIT 48.73 2.3 MobileMini MINI 48.05 0.6 Perma-PipeIntl PPIH 9.87 0.5 SunCokeEnergy SXC 13.83 1.7 VinceHolding VNCE 10.96 14.2 CincinnatiBell CBB 12.10 -0.4 TownsquareMedia TSQ 6.25 -2.8
BrooklineBcp BRKL 18.30 2.0 CrestwoodEquity CEQP 33.75 4.0 FirstDefiance FDEF 63.14 1.5 Insperity NSP 93.20 0.8 Moelis MC 60.10 0.3 PetroChina PTR 83.49 2.9 SunstoneHotelInv SHO 17.49 1.8 VishayPrecision VPG 38.25 1.9 CitigroupWt19 C.WS.A 0.01 -21.3 WellsFargoPfdL WFCpL1253.00 0.4
Brunswick BC 64.66 3.0 Crocs CROX 17.86 2.8 FirstIndRlty FR 32.98 2.0 Insulet PODD 96.38 -0.5 MonolithicPower MPWR 134.69 1.7 PhibroAnimal PAHC 46.05 1.1 Surmodics SRDX 51.30 1.0 VistraEnerUn DYNC 98.64 1.3 SABESP SBS 6.84 -0.1 WestpacBanking WBK 21.03 0.6
CACI Intl CACI 167.80 2.2 CryoLife CRY 27.50 2.8 Fortinet FTNT 61.41 2.1 IntegratedDevice IDTI 34.15 1.2 Morningstar MORN 120.60 1.4 Plantronics PLT 74.51 2.0 Sysco SYY 66.51 1.4 VistraEnergy VST 24.56 1.1 COPEL ELP 6.18 -0.2 WestwaterRscs WWR 0.35 -1.7
CBIZ CBZ 21.08 0.2 CryoPortWt CYRXW 9.36 1.2 Fossil FOSL 22.02 2.2 Intel INTC 56.20 0.7 Movado MOV 49.85 16.6 PlayAGS AGS 25.10 ... TJX TJX 89.90 1.6 VistraEnergyWt VST.WS.A 1.18 10.3 Coty COTY 13.29 2.0 YPF YPF 18.05 -3.2

Mutual Funds Data provided by

Fund
Net YTD
NAV Chg %Ret Fund
Net YTD
NAV Chg %Ret Fund
Net YTD
NAV Chg %Ret Fund
Net YTD
NAV Chg %Ret Fund
Net YTD
NAV Chg %Ret Fund
Net YTD
NAV Chg %Ret Fund
Net YTD
NAV Chg %Ret
OTC 12.20 +0.12 11.1 Lord Abbett F NHoriz 58.82 +0.65 11.9 500Adml 252.30 +3.20 2.7 RealEstatAdml112.16 +1.53 LifeGro
-3.7 34.01 +0.28 1.0 VANGUARD INSTL FDS
Top 250 mutual-funds listings for Nasdaq-published share classes by net assets. Puritn 24.00 +0.19 2.9 ShtDurIncm 4.19 -0.01 0.2 OverS SF r 11.30 +0.06 -0.1 BalAdml 35.03 +0.23 1.4 SmCapAdml 74.89 +1.05 LifeMod6.1 27.30 +0.16 0.6 BalInst 35.04 +0.23 1.4
e-Ex-distribution. f-Previous day’s quotation. g-Footnotes x and s apply. j-Footnotes e SrsEmrgMkt 20.59 ... -3.8 Metropolitan West R2020 NA ... NA CAITAdml 11.63 ... -0.2 STBondAdml 10.27 -0.02 PrmcpCor
-0.3 27.50 +0.31 2.2 DevMktsIndInst 14.26 +0.15 -0.8
and s apply. k-Recalculated by Lipper, using updated data. p-Distribution costs apply, SrsGroCoRetail18.61 +0.23 11.9 TotRetBd 10.41 -0.04 -1.4 R2025 NA ... NA CapOpAdml r162.29 +1.77 5.7 STIGradeAdml 10.48 -0.02 SelValu r
-0.4 30.23 +0.36 -3.3 DevMktsInxInst 22.29 +0.23 -0.8
12b-1. r-Redemption charge may apply. s-Stock split or dividend. t-Footnotes p and r SrsIntlGrw 16.13 +0.14 -0.1 TotRetBdI 10.41 -0.04 -1.3 R2030 NA ... NA EMAdmr 36.99 ... -2.9 TotBdAdml 10.46 -0.03 STAR -1.6 27.15 +0.15 1.3 ExtndInst 89.60 +1.19 6.0
apply. v-Footnotes x and e apply. x-Ex-dividend. z-Footnote x, e and s apply. NA-Not SrsIntlVal 10.39 +0.13 -2.8 TRBdPlan 9.80 -0.04 -1.3 R2035 NA ... NA EqIncAdml 77.13 +1.12 -0.5 TotIntBdIdxAdm 21.77 -0.02 TgtRe2015 15.37 +0.05
0.7 0.3 GrwthInst 76.78 +0.85 6.4
available due to incomplete price, performance or cost data. NE-Not released by Lipper; TotalBond 10.39 -0.02 -1.3 MFS Funds Class I R2040 NA ... NA ExplrAdml 98.59 +1.15 11.5 TotIntlAdmIdx r 30.04 +0.24 TgtRe2020 31.54 +0.16
-1.3 0.5 InPrSeIn 10.32 -0.02 -0.7
data under review. NN-Fund not tracked. NS-Fund didn’t exist at start of period. First Eagle Funds ValueI 39.39 +0.52 -3.1 Value 36.82 +0.49 -1.3 ExtndAdml 89.60 +1.18 6.0 TotStAdml 68.64 +0.89 TgtRe2025 18.61 +0.11
3.3 0.6 InstIdx 249.02 +3.17 2.7
GlbA 59.18 +0.49 0.2 MFS Funds Instl PRIMECAP Odyssey Fds GNMAAdml 10.24 -0.03 -0.9 TxMIn r 14.24 +0.15 TgtRe2030 33.90 +0.24
-0.8 0.8 InstPlus 249.04 +3.17 2.7
FPA Funds IntlEq 25.45 +0.22 ... AggGrowth r 50.95 +0.73 14.9 GrwthAdml 76.78 +0.86 6.4 ValAdml 41.01 +0.58 TgtRe2035 20.89 +0.17
-0.4 1.0 InstTStPlus 61.02 +0.79 3.3
Wednesday, May 30, 2018 FPACres 34.50 +0.19 -0.5 Oakmark Funds Invest Growth r 41.38 +0.47 11.1 HlthCareAdml r 84.93 +0.95 0.5 WdsrllAdml 66.88 +0.82 TgtRe2040 36.18 +0.33
-0.4 1.1 MidCpInst 43.28 +0.52 2.6
Net YTD Net YTD Net YTD FrankTemp/Frank Adv EqtyInc r 31.91 +0.20 -0.9 Stock r 32.29 +0.37 1.2 HYCorAdml r 5.71 +0.01 -1.4 WellsIAdml 63.61 +0.20 TgtRe2045 22.77 +0.22
-1.9 1.2 MidCpIstPl 213.45 +2.55 2.6
Fund NAV Chg %Ret Fund NAV Chg %Ret Fund NAV Chg %Ret IncomeAdv 2.29 +0.01 -0.8 Oakmark 85.87 +0.96 1.8 Principal Investors InfProAd 25.33 -0.04 -0.7 WelltnAdml 71.76 +0.62 TgtRe2050 36.65 +0.36
-0.6 1.2 SmCapInst 74.89 +1.05 6.1
American Century Inv CoreBond 9.91 -0.03 -1.4 500IdxPrem 95.45 +1.21 2.7 FrankTemp/Franklin A OakmrkInt 27.31 +0.15 -4.4 DivIntlInst NA ... NA IntlGrAdml 99.92 +1.02 4.5 WndsrAdml 79.64 +1.09 TgtRetInc
0.8 13.52 +0.03 0.1 SmCapIstPl 216.18 +3.04 6.1
Ultra 47.51 +0.49 9.4 Del Invest Instl ExtMktIdxPrem r 65.72 +0.87 6.0 CA TF A p 7.34 ... -0.5 Old Westbury Fds Prudential Cl Z & I ITBondAdml 10.99 -0.04 -2.2 VANGUARD FDS TotIntBdIxInv 10.89 -0.01 0.7 STIGradeInst 10.48 -0.02 -0.4
American Funds Cl A Value 22.07 +0.32 3.2 IntlIdxPrem r 42.72 +0.43 -1.0 IncomeA p 2.31 +0.01 -0.8 LrgCpStr 14.66 +0.12 1.4 TRBdZ 14.09 -0.06 -2.1 ITIGradeAdml 9.43 -0.03 -2.0 DivdGro 26.84 +0.37 2.3 WellsI 26.26 +0.09 -1.9 TotBdInst 10.46 -0.03 -1.6
AmcpA p 34.04 +0.38 8.1 Dimensional Fds SAIUSLgCpIndxFd 14.67 +0.19 2.7 RisDv A p 61.46 +0.88 0.7 Oppenheimer Y Schwab Funds LTGradeAdml 9.84 -0.06 -5.7 INSTTRF2020 22.64 +0.11 0.5 Welltn 41.55 +0.36 -0.6 TotBdInst2 10.43 -0.03 -1.6
AMutlA p 40.88 +0.54 0.7 5GlbFxdInc 10.88 -0.02 0.1 TMktIdxF r 78.59 +1.00 3.3 FrankTemp/Franklin C S&P Sel 42.30 +0.54 2.7 MidCpAdml 195.92 +2.35 2.6 INSTTRF2025 23.01 +0.14 0.7 WndsrII 37.68 +0.46 -0.4 TotBdInstPl 10.46 -0.03 -1.6
DevMktY NA ... NA
BalA p 27.22 +0.20 0.6 EmgMktVa 30.71 +0.02 -1.6 TMktIdxPrem 78.59 +1.01 3.3 Income C t 2.34 +0.01 -1.1
IntGrowY 43.89 +0.54 0.6 TIAA/CREF Funds MorgAdml 98.54 +1.11 8.6 INSTTRF2030 23.31 +0.17 0.8 VANGUARD INDEX FDS TotIntBdIdxInst 32.66 -0.03 0.7
BondA p 12.58 -0.05 -1.6 EmMktCorEq 22.45 +0.01 -3.3 USBdIdxInstPrem 11.28 -0.04 -1.6 FrankTemp/Temp A BdIdxInst 10.53 -0.03 -1.6 MuHYAdml 11.25 -0.01 -0.1 INSTTRF2035 23.61 +0.20 1.0 500 252.26 +3.20 2.6 TotIntlInstIdx r120.15 +1.00 -1.3
Parnassus Fds
CapIBA p 60.79 +0.58 -2.4 IntlCoreEq 14.44 +0.17 -0.7 Fidelity Advisor I GlBond A p 11.69 -0.01 -0.2 EqIdxInst 20.29 +0.26 3.3 MuIntAdml 13.90 ... -0.5 INSTTRF2040 23.90 +0.22 1.2 ExtndIstPl 221.13 +2.93 6.0 TotItlInstPlId r120.17 +1.00 -1.3
ParnEqFd 43.51 +0.45 2.3
CapWGrA 51.90 +0.54 1.9 IntlVal 20.08 +0.25 -1.8 NwInsghtI 33.67 +0.43 7.4 Growth A p 26.70 +0.27 -2.1 IntlEqIdxInst 20.02 +0.21 -0.7 MuLTAdml 11.44 ... -0.5 INSTTRF2045 24.09 +0.23 1.2 SmValAdml 58.90 +0.83 3.7 TotStInst 68.65 +0.89 3.3
PIMCO Fds Instl
EupacA p 56.47 +0.52 0.4 IntSmCo 21.22 +0.24 -0.2 Fidelity Freedom FrankTemp/Temp Adv Tweedy Browne Fds MuLtdAdml 10.83 ... 0.2 INSTTRF2050 24.12 +0.24 1.3 TotBd2 10.43 -0.03 -1.7 ValueInst 41.01 +0.58 -0.4
AllAsset NA ... NA
FdInvA p 63.22 +0.83 1.9 IntSmVa 22.32 +0.23 -2.8 FF2020 16.26 +0.08 0.6 GlBondAdv p 11.64 -0.01 -0.2 GblValue 28.72 +0.01 0.8 MuShtAdml 15.70 ... 0.5 IntlVal 39.03 +0.31 -2.1 TotIntl 17.96 +0.15 -1.3 Western Asset
Harbor Funds
ShortT NA ... NA
GwthA p 53.42 +0.62 7.8 US CoreEq1 23.51 +0.30 3.4 FF2025 14.18 +0.08 0.7 TotRt 10.00 -0.04 -1.6
VANGUARD ADMIRAL PrmcpAdml r141.77 +1.63 6.1 LifeCon 19.91 +0.06 0.1 TotSt 68.60 +0.88 3.2 CorePlusBdI 11.42 -0.06 -2.3
HI TrA p 10.11 +0.01 -0.1 US CoreEq2 22.11 +0.28 2.7 FF2030 17.77 +0.13 1.0 CapApInst 77.12 +0.84 11.1
PIMCO Funds A
ICAA p 41.01 +0.56 1.9 US Small 37.87 +0.57 5.6 Freedom2020 K 16.24 +0.08 0.6 IntlInst r 67.47 +0.67 -0.1
Harding Loevner IncomeFd NA ... NA
IncoA p 22.98 +0.22 -1.0 US SmCpVal 40.32 +0.65 6.3 Freedom2025 K 14.16 +0.08 0.8 PIMCO Funds I2
IntlEq
N PerA p
NEcoA p
45.18 +0.51
48.99 +0.32
4.7
9.8
US TgdVal 26.08 +0.39 4.9 Freedom2030 K 17.75 +0.13
USLgVa 38.82 +0.54 -0.3 Freedom2035 K 15.02 +0.14
1.1
1.4 Invesco Funds A
NA ... NA
Income NA
PIMCO Funds Instl
... NA Dividend Changes
NwWrldA 66.74 +0.52 -0.3 Dodge & Cox Freedom2040 K 10.55 +0.10 1.4 EqIncA 10.88 +0.11 -0.4
SmCpA p 58.52 +0.64 4.9 Balanced 104.73 +0.82 -0.5 Fidelity Invest John Hancock Class 1 IncomeFd NA ... NA Dividend announcements from May 30.
LSGwth 16.29 +0.14 1.3 Price Funds
TxExA p 12.84 ... -0.4 GblStock 13.44 +0.12 -3.0 Balanc 24.33 +0.19 2.9
John Hancock Instl BlChip 107.47 +1.11 11.6 Amount Payable / Amount Payable /
WshA p 46.27 +0.63 1.8 Income 13.49 -0.03 -1.0 BluCh 96.68 +1.00 10.2
Baird Funds Intl Stk 44.11 +0.23 -4.8 Contra DispValMCI 23.48 +0.35 0.7 EqInc 32.94 +0.48 -0.8 Company Symbol Yld % New/Old Frq Record Company Symbol Yld % New/Old Frq Record
131.11 +1.62 8.7
AggBdInst 10.57 -0.04 -1.7 Stock 201.11 +2.66 0.2 ContraK 131.08 +1.62 8.8 JPMorgan Funds EqIndex 73.30 +0.93 2.6
MdCpVal L 39.96 +0.56 -0.8 Growth 68.19 +0.68 8.8 Increased Stocks
CorBdInst 10.91 -0.04 -1.6 DoubleLine Funds CpInc r 10.23 +0.03 0.9
BlackRock Funds A CoreFxdIncmI NA ... NA DivIntl JPMorgan R Class HelSci NA ... NA Advanced Drainage Systems WMS 1.1 .08 /.07 Q Jun15 /Jun05 Curis CRIS 1:5 /May30
39.49 +0.39 -1.3
GlblAlloc p 19.56 +0.12 -0.7 TotRetBdI NA ... NA GroCo 199.01 +2.38 11.4 CoreBond 11.31 -0.03 -1.2 InstlCapG 41.04 +0.42 11.2 CVR Energy CVI 7.7 .75 /.50 Q Aug13 /Aug06
CorePlusBd 8.07 -0.02 -1.4 IntlStk 18.50 +0.10 -0.9 El Paso Electric EE 2.4 .36 /.335 Q Jun29 /Jun15 Foreign
BlackRock Funds Inst Edgewood Growth Instituti GrowCoK 199.04 +2.37 11.4
EqtyDivd 22.37 ... -1.3 EdgewoodGrInst 33.02 +0.42 11.7 InvGB Lazard Instl IntlValEq NA ... NA Universal Insurance Hldgs UVE 1.8 .16 /.14 Q Jul16 /Jul02 Bank Of Nova Scotia BNS 4.2 .63657 Q Jul27 /Jul03
7.72 -0.02 -1.6
GlblAlloc 19.69 +0.11 -0.6 Fidelity InvGrBd 10.97 -0.04 -1.4 EmgMktEq 18.64 +0.02 -6.9 MCapVal 31.16 +0.43 2.5 Formula Systems ADR FORTY 1.8 .34 SA Jul27 /Jun08
StratIncOpptyIns 9.81 -0.01 -0.2 500IdxInst 95.46 +1.22 2.7 LowP r 55.04 +0.63 1.0 Lord Abbett A MidCap 91.67 +0.89 5.3 KEY: A: annual; M: monthly; Q: quarterly; r: revised; SA: semiannual; Gazit-Globe GZT .10639 Jul03 /Jun15
Bridge Builder Trust 500IdxInstPrem 95.45 +1.21 2.7 MagIn 105.40 +1.47 5.6 ShtDurIncmA p 4.19 -0.01 0.1 N Inc 9.22 -0.03 -1.7 S2:1: stock split and ratio; SO: spin-off. Silvercorp Metals SVM 0.9 .0125 SA Jun29 /Jun08
 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.

B10 | Thursday, May 31, 2018 * * THE WALL STREET JOURNAL.

BANKING & FINANCE

European
Lenders Face
New Shock

SALVATORE LAPORTA/KONTROLAB/LIGHTROCKET VIA GETTY IMAGES

Instability from Italy lenders, analysts said.
Italian banks have been at
shows EU’s banking the heart of the selloff. The
system isn’t fully fixed country’s chronically unprofit-
able lenders have been
after the past crisis steadily wading through deep
restructuring and shedding
European bank executives bad loans. Fragile investor
are facing the return of an all confidence in the turnaround
too familiar problem: political has been dented by the latest
panic. political upheaval.
The negative sentiment also
By Max Colchester, hit French and Spanish banks,
Patricia Kowsmann which have sizable exposures
and Giovanni Legorano to Italian government debt. In
Portugal—which like Italy has
After years of slowly heal- a huge government debt pile— Shares of European banks have been hit this week by political unrest in Italy. A protest against the president in Naples on Tuesday.
ing from past crises, European shares of Banco Comercial
banks have recently had the Português SA, the country’s Up until the turn of the for example, has been largely
luxury of turning their focus largest traded bank, were year, investors had predicted Bank Woes shunned by Germany. The Ger-
to boosting profits and shed- down 12% this week. that the combination of an Investors desert Europe’s lenders as political tensions rise. man government and other
ding bad loans. But the politi- European banks’ share economic rebound, banking member states whose banks
15%
cal turmoil in Italy—home to prices stabilized in early trad- overhauls pushed through by weren’t as hard-hit by the cri-
arguably Europe’s most prob- ing Wednesday but the hit to the European Central Bank sis, have also resisted the cre-
lematic banking sector—has investor confidence in the sec- and rising interest rates would 10 ation of an EU-wide deposit-in-
rekindled fears that the euro’s tor was palpable. see European bank profits rise surance program, which would
fragility, and authorities’ fail- This latest instability comes to €120 billion this year, says provide safety for depositors
ure to unify the region’s dispa- as the European banking sec- George Karamanos, an analyst 5 FTSE Italia no matter their location.
All-Share
rate banking system, will con- tor continues to lick its at Keefe, Bruyette & Woods. During the last eurozone
Banks Index
tinue to haunt the industry. wounds from the continent’s “Are those expectations realis- crisis, banks across Europe
0
As the political temperature last debt crisis. A huge balance tic now?” he asked, adding shed sovereign exposures to
rises in Rome, and to a lesser sheet cleanup remains unfin- that it is unlikely. riskier periphery markets.

.
extent in Madrid, European ished, with €813 billion ($938.3 The optimism was particu- –5 Stoxx Europe However, domestic banks in

banks have taken the brunt of billion) of bad loans—a large
the pain. chunk of which is in Italy—still
The Euro Stoxx Banks index sitting on bank balance sheets,
is down 5% this week follow- according to the European on stocks in Europe. Political risk
ing Italian President Sergio Banking Authority. Meanwhile,
Mattarella’s move to block the overhauls aimed at decoupling
formation of an antiestablish- the “doom loop”—in which
ment government. A coming banks laden with their local
us l,
ly
larly visible in Italy. Up until a 600 Banks Index those countries still have large
few months ago, Italian banks exposure to their home sov-
were the best-performing bank –10 ereign debt, particularly as
Italian they are treated as safe assets
was seen as low, and investors election under bank accounting rules.
–15
were cheering on a reduction Currently 10 Italian banks
in bad loans, which had January February March April May have Italian sovereign-debt
shrunk to €285 billion from Source: Thomson Reuters THE WALL STREET JOURNAL. holdings greater than their

vote in Spain that could de- government’s debt are sucked
pose its pro-market center- into a downward spiral as their
al a
e
right party from power has home economy deteriorates—
also rattled investors. remain unfinished.
“The whole banking sector “Whatever is bad for the
ci on
€350 billion in the space of a
year. Politics has now damped
that optimism.
In Italy, two antiestablish-
ment parties, whose attempt
the courts, which could slow
the cleanup of banks’ balance
sheets. They also hinted at the
possible full nationalization of
come the political impasse.
That has raised questions
over the eurozone’s future.
Both parties have flirted openly
capital buffers, according to a
study by France’s IESEG
School of Management.
After Italian banks, French
banks are the second most ex-

was under attack,” said Vin- Italian economy is going to be
cenzo Longo, a strategist at IG bad for its banks,” said Sony
Markets. Kapoor, managing director of
If it continues, the uncer- think tank Re-Define. “That as-
tainty could delay widely an- pect of the loop you simply
er rs
to form a coalition govern-
ment failed last Sunday, had
struck an agreement on a joint
government platform, which
included a number of mea-
Banca Monte dei Paschi di
Siena SpA, in which the gov-
ernment owns a majority
stake after partially national-
izing it last year.
with pulling Italy out of the
euro—and in turn spooked in-
vestors and highlighted a wider
problem: European Union au-
thorities haven’t fully fixed the
posed to Italian government
debt with €44.27 billion in
bonds, followed by Spain with
€28 billion of sovereign debt,
according to calculations by

ticipated interest-rate rises in cannot break.”
Europe, a move that would But the political turmoil re-
crimp bank profits. It could minds investors that European
also hamper a closely watched banks aren’t going to be mak-
m e
sures for the banking sector. While their coalition at- continent’s banking system. the EBA. France’s BNP Paribas
The two parties planned to tempt collapsed, they could A plan to package eurozone SA, which has a large Italian
scrap a rule allowing banks to come back stronger if new sovereign bonds together to bank, and Spain’s Banco de Sa-
recover debts from retail bor- elections are called. Talks in reduce the riskiness of any in- badell SA are among the most

cleanup operation at Italian ing outsize profits soon. rowers without going through Italy continue on how to over- dividual bond within the pool, exposed to Italy, analysts say.
m rp

STREET last minute, offering both fis-

cal and eventually monetary
bailouts during the last crisis
despite them having previ-
More convincing is the
idea that Italy’s bond market
exaggerated the panic be-
cause it has become so hard
Continued from page B1 ously been deemed impossi- to trade. The gap between
co Fo

There are three possible ble and possibly illegal. the yield at which people
interpretations for why mar- Still, it is hard to see how were willing to buy and sell
CARLO HERMANN/KONTROLAB/LIGHTROCKET/GETTY IMAGES

kets outside Italy didn’t react the euro could survive an Ital- the two-year bond was ex-
more strongly. The first is ian exit without other coun- ceptionally wide at 0.46 per-
fundamental: Europe’s weak tries following it out the door. centage point, according to
economies have been trans- The country is the third-big- Tradeweb, backing up the
formed since they were gest borrower in the world, idea that liquidity had evapo-
threatened by contagion from with €2 trillion ($2.31 trillion) rated. As one hedge-fund
Greece in the last euro crisis. of bonds and bills outstanding. manager shorting Italian
Ireland is now regarded as a Much of its debt is domesti- bonds put it, there has been
safe “core” country, Spain is cally owned, but the size of It- a “buyer’s strike” because
growing fast and even Portu- aly’s debt pile means a default foreigners were unwilling to
gal has taken the medicine. would be catastrophic for its buy, while domestic investors
Perhaps this time around, the own and Europe’s banks. It were scaling back holdings.
n-

trouble can be contained. would also create political Wednesday’s big recovery
The second is technical: fractures that could threaten supports the idea that Italian
The lack of significant conta- the European Union. bond yields were only tem-
gion is because investors Luigi Di Maio, leader of 5 Star Movement, Italy’s anti-establishment party, is seen on Tuesday. Economic chaos in Italy af- porarily high.
no

elsewhere regard the Italian ter a devaluation would be all The worry is that often in
moves as overdone, the re- bling: Perhaps investors are default on them, or both, just petitiveness improved and but guaranteed, and surely markets the first panicked
sult of hedge funds and oth- complacent about the dan- as it was for Greece in 2011. current-account deficits hurt growth in the rest of Eu- move turns out to be right,
ers piling in to sell bonds in gers Italy poses, relying on Greece defaulted on its bonds turned into surpluses. Italy, rope—although such chaos after a period of consolida-
a market that became sud- the European elite to once and briefly used capital con- meanwhile, has bumbled might persuade reluctant tion. If the speculators are
denly illiquid. Buyers stayed again come up with a way to trols to suspend convertibility along; as Capital Economics euro members that the pain correct about the danger of
on the sidelines because a keep truculent crowd-pleas- of its euros into the euros Chairman Roger Bootle of staying is worthwhile. the newly installed techno-
market that has overshot can ing politicians under control. used in the rest of the region. points out, every other coun- Even worse from the point of cratic government rapidly be-
always overshoot even fur- Italian bonds are cheaper It is true that Europe’s try in the region except Italy view of markets would be if ing replaced by anti-EU popu-
ther in the short run, but the (thus have a higher yield) be- weak countries—bar Italy— has become more competitive an Italian euro exit went lists, bond yields as high or
bond yield wasn’t a reflec- cause of the fear that the aren’t as weak as in the last against Germany since 2011. well, encouraging anti-Euro- higher than on Tuesday might
tion of the real risks to Italy. country will re-denominate its crisis. Banks have been recap- Further, Europe has a habit peans in other countries to well be justified. That will be
The third is the most trou- euro bonds into devalued lira, italized or restructured, com- of doing the impossible at the push for a repeat. the true test of contagion.

FINANCE WATCH
ABRAAJ GROUP PRINCIPAL FINANCIAL LEGG MASON
Big Banks Are Bulking Up
Kuwait Pension Fund Insurer Strikes Deal
Seeks Liquidation To Buy Fintech Firm
Firm Nears Settling
Probes Over Libya
On Spending for Technology
Kuwait’s pension fund is try- Principal Financial Group Inc. Legg Mason Inc. said it soon BY TELIS DEMOS a report by the National Ven- employs about 50,000 people
ing to force private-equity firm will buy RobustWealth, beefing would resolve U.S. investigations ture Capital Association and in technology-related jobs.
Abraaj Group into bankruptcy up its digital capabilities at a into a unit’s business practices in Citigroup Inc. spent $8 bil- PitchBook. The big figures also give a
proceedings over allegedly not time retirement savers are in- Libya and had taken a $67 mil- lion on technology in 2017, The gap highlights how fu- sense of how much banks are
repaying a $100 million loan, ac- creasingly opting for robo advis- lion charge to last quarter’s easily more than was invested riously banks are spending to betting that new technology,
cording to a court document. ers and index funds. earnings to pay for a possible by venture capital across all keep themselves ahead of po- ranging from robotic process
In a document filed May 22 Des Moines, Iowa-based Prin- settlement. U.S. financial-technology start- tential upstart competitors. automation to open-ledger
in the Cayman Islands, Kuwait’s cipal, an insurance company with The money manager wrote in ups last year. Even large, established fintech blockchain systems, can help
Public Institution for Social Se- $673.8 billion in assets under its annual regulatory filing that Chief Executive Michael firms can’t rival what Citi- cut costs over the longer term.
curity says Abraaj is “substan- management, is a big provider of it “will shortly complete negotia- Corbat, speaking to investors group is spending on “We’re spending more this
tially insolvent” and unable to 401(k) plans to employees of tions with both the U.S. Depart- at a conference Wednesday, tech: PayPal Holdings Inc.’s year than last year in an effort
repay the loan and $7 million in- small and midsize companies. ment of Justice and the [Securi- said that about 20% of the total expense base in 2017 was to spend less next year,” Mr.
terest by the agreed-upon date, RobustWealth is a financial-tech- ties and Exchange Commission] bank’s expenses go to technol- $11 billion. Corbat said at the Bernstein
which is Sunday. The Kuwait nology company based in Lam- staff to resolve a Foreign Cor- ogy, which translates roughly Part of banks’ budgets go Strategic Decisions Conference
fund has asked the court that bertville, N.J., that offers auto- rupt Practices Act investigation” into a more than $8 billion an- toward maintenance of exist- in New York.
Abraaj’s assets be liquidated and mated rebalancing and an open into Permal Group’s investment nual tech budget based on last ing systems. Still, a big portion Citigroup said it expects its
distributed to creditors. menu of investment options. business with Libyan govern- year’s expenses. is also spent on new technolo- expense ratio, a measure of
Abraaj “has confirmed that RobustWealth has about ment entities in the years before Meanwhile, U.S. fintech gies and projects. costs as a percentage of reve-
the debt will not be repaid…the $900 million in assets on its the fall of Moammar Gadhafi’s companies, such as online JPMorgan Chase & Co. nue, to fall from 58% to 57%
company is therefore insolvent platform. regime. Including the charge, net banking firm Social Finance said it would spend $10.8 bil- over the course of this year.
and unable to pay its debts,” the The companies didn’t disclose income totaled $16.64 million, or Inc. and business payments lion on technology in 2018. In Mr. Corbat said the bank antic-
Kuwait fund’s petition says. the terms of the deal. A spokes- 10 cents a share, in the first service AvidXchange Inc., re- previous years, the bank has ipated that decline would ac-
Abraaj didn’t immediately re- woman said the deal is expected quarter. The firm previously re- ceived $6.5 billion in new said that roughly one-third of celerate to a 2-percentage-
spond to requests for comment. to close July 2. ported an 86-cent-a-share profit. funding last year from ven- its tech budget is spent on new point drop in both 2019 and
—Nicolas Parasie —Lisa Beilfuss —Justin Baer ture-capital firms, according to investments. The bank overall 2020.
 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.
THE WALL STREET JOURNAL.
Treasurys
Shift Into
Reverse
After Rally
BY DANIEL KRUGER
Treasury prices fell
Wednesday, retracing some of
the gains from Tuesday’s rally,
after Italy’s president consid-
ered a move that would avert
new elections.
The yield on the 10-year
Treasury note rose to 2.842%,
from 2.772%
CREDIT Tuesday, snap-
MARKETS ping four
straight days of
declines. The
two-year Treasury yield
climbed to 2.411% from 2.319%
the day before. Yields rise as
bond prices fall.
Yields rose after the Italian
government auctioned five-
year debt at the highest fund-
ing cost in more than four
years, with the securities at-
tracting strong demand. The
debt sold with a yield of
2.32%. As recently as April 27,
five-year bonds were auc-
tioned with yields of 0.56%.
U.S. yields rose and ten-
sions eased after Italian Presi-
dent Sergio Mattarella
searched for a way Wednesday
to foster the creation of a new
government and stave off
fresh elections. Mr. Mattarella
was considering the possibility
of reviving a coalition govern-
ment supported by Italy’s two
large antiestablishment par-
ties—the 5 Star Movement and
the League—that had seemed
poised to take power last
weekend.
Italian two-year bond yields
dropped to 1.763% Wednesday
from 2.099% the day before,
according to Tradeweb, eras-
ing much of Tuesday’s rapid
ascent. The selling had driven
the yield up by as much as 1.5
percentage points in a single
trading session. Italy’s 10-year
bond yield declined to 3.019%
from 3.043% on Tuesday.
“There was a stabilizing
force that came into the mar-
ket,” said Thomas di Galoma, a
managing director and head of
Treasury trading at Seaport
Global Holdings. “Looking out
2.842%
The 10-year Treasury yield’s
closing level on Wednesday
30 to 60 days, we’re still going
to be very vulnerable to head-
line risk.”
The 10-year U.S. Treasury
yield may be near the bottom
of its new range, Mr. di Ga-
loma said. “Interest rates will
slowly back up to 3%,” he said.
The 10-year note reached
3.109% May 17, its highest
since July 2011.
Treasury yields rose even
no
as two pieces of data fell be-
low economist expectations.
The Commerce Department
said Wednesday that gross do-
mestic product rose at a 2.2%
seasonally adjusted annual
rate in the first quarter. Econ-
omists surveyed by The Wall
Street Journal had expected
an unrevised 2.3% reading.
The ADP National Employment
report showed the economy
added 178,000 private-sector
jobs, fewer than expected.
Economists polled by the
Journal had expected the addi-
tion of 187,000 jobs.
Saudi-Russia Pact Stirs OPEC Discord
The first cracks are showing
in an alliance of petroleum-
producing countries whose ef-
By Summer Said in
Dubai and Benoit
Faucon in London
forts have propped up oil
prices, with some OPEC mem-
bers accusing Saudi Arabia of
capitulating to U.S. and Rus-
sian pressure for lower prices.
Kuwait and Iran are leading
a faction in the Organization
of the Petroleum Exporting
Countries that are upset about
an agreement struck between
Saudi Arabia and Russia last
week to ease up on oil-produc-
tion cuts, according to people
familiar with the matter.
Those cuts—among OPEC’s 14
members and a group of 10
outside the group led by Rus-
* * * *
Stocks Rebound as Italy Fears Ebb
Dow, S&P 500 each
rise 1.3%, posting their
best results in weeks;
banks bounce back
BY MIKE BIRD
AND AMRITH RAMKUMAR
The Dow Jones Industrial
Average and S&P 500 snapped
a three-session losing streak
as markets stabilized after a
big selloff tied to Italy’s politi-
cal upheaval.
Italian President Sergio
Mattarella blocked the forma-
tion of a euroskeptic governing
coalition
WEDNESDAY’S over the
MARKETS weekend,
jolting in-
vestors who
worried that the resulting tur-
moil in Italian markets could
spread. Mr. Mattarella on
Wednesday searched for a so-
lution to the political crisis, in-
cluding the possibility of reviv-
ing a coalition government—
an option that would stave off
fresh elections.
Markets calmed as investors
considered the likelihood that
those elections could
strengthen the hand of anti-
euro forces and disrupt finan-
cial markets, said Thomas
Rupee’s Drop Rattles India’s Growth Story
BY CORINNE ABRAMS
AND DEBIPRASAD NAYAK
MUMBAI—The rupee is the
worst performing currency in
Asia this year, flirting with a
us l,
record low on worries that In-
dia is headed for problems as
al a
e
oil prices remain high.
The rupee has declined 5.3%
against the dollar this year
ci on
and has underperformed
against almost all others. Only
those of Argentina, Brazil,
Russia and Turkey have done
worse. Most currencies have
er rs
fallen against the dollar since
the start of the year over a
strong U.S. economy and ris-
ing U.S. Treasury yields.
m e
The Indian currency is now
trading close to its low of
68.90 rupees to the dollar hit
m rp
in February 2016, and some
economists see it sliding to 70
this year. Late Wednesday in
New York, the dollar bought
67.43 rupees.
co Fo
India is particularly vulnera-
ble to fluctuations in oil prices,
shipping in 80% of its energy
needs due to demand that far
outpaces domestic production.
Brent crude oil is trading at
about $77 a barrel, compared
with $63 six months ago.
The increased price of oil
imports will likely push up in-
flation in India as the costs of
products and services rise and
widen the current-account and
budget deficits.
n-
“As one of the largest im-
porters of oil, the Indian econ-
omy is one of the most ex-
posed to this particular shock,
so it is not surprising to see
some underperformance,” said
Kenneth Akintewe, head of
Asian sovereign debt at Aber-
deen Asset Management Asia
Ltd.
Bank of America Merrill
Lynch estimates that every
$10 increase in oil prices hurts
Indian consumption by 0.6% of
gross domestic product,
threatening to hold back In-
dia’s pace of expansion.
India had been in a sweet
spot since Prime Minister Nar-
endra Modi came to power in
2014. Its economic expansion
sia—drained a global oil glut
and have helped oil prices rise
60% to over $80 a barrel since
November 2016.
Iran is Saudi Arabia’s top
political rival in the Middle
East, but Kuwait is seen as a
mediator in OPEC disputes.
Kuwait’s unease with the
Saudi position signals deep
discord in
COMMODITIES OPEC, which
could send
oil prices
lower if it derails the entente
with Russia, the world’s larg-
est oil producer.
The price of oil had already
fallen $5 a barrel to $75 after
Saudi and Russian officials
said last week that it was time
to start releasing more oil.
Their move came amid specu-
lation that prices were headed
toward $100 a barrel, and the
MARKETS
PACO FREIRE/SOPA IMAGES/LIGHTROCKET VIA GETTY IMAGES
HP shares rose 4% on a higher profit forecast for company.
Martin, senior portfolio man-
ager at Atlanta-based Globalt
Investments.
“There’s a lot that has to
happen for that scenario to
play out,” Mr. Martin said.
Tuesday “didn’t feel like a
panic, it felt as though people
wanted to make sure they
weren’t positioned incor-
rectly,” he said.
The Dow industrials added
306.33 points, or 1.3%, to
24667.78, while the S&P 500
climbed 34.15 points, or 1.3%,
on
The rupee has declined 5.3% against the dollar this year and has underperformed against almost all other currencies.
is outpacing even China’s, in-
flation is in check, its budget
deficit seemed to be shrinking
and its popular prime minister
had looked unbeatable. It is
now the world’s fastest-ex-
panding large economy.
But the rise in crude prices
and an emerging-market sell-
off has rattled Asia’s third-
largest economy.
India runs a current-ac-
count deficit, meaning that the
value of its imports of goods
and services exceeds that of
its exports. The deficit could
move beyond the 2% of GDP
expected for the year that
ended March 31, to up to 3%
this financial year, Nomura es-
timates.
India has in the past been
cushioned from oil-price rises
by strong foreign investment.
But foreign investors this
year have pulled $4.4 billion
from India, including $2.8 bil-
lion in May alone. That out-
flow comes despite central-
average cost of a gallon of gas-
oline in the U.S. climbed to-
ward $3 a gallon, the most ex-
pensive in more than three
years.
The decision came about a
month after President Donald
Trump tweeted about his con-
cerns over rising oil prices, for
which he blamed OPEC.
On Wednesday, light, sweet
crude for July delivery rose
2.2%, to $68.21 a barrel, on the
New York Mercantile Ex-
change. Brent gained 2.8%, to
$77.50, on ICE Futures Europe.
Kuwait, Iran and other
OPEC members say Saudi Ara-
bia has allowed its political al-
liance with the Trump admin-
istration over Iran to affect its
judgment on oil policy.
“Saudi Arabia won’t let oil
prices go to $100 because they
listen to Trump,” a Kuwaiti oil
to 2724.01, with all of its 11 sec-
tors rising. Both indexes posted
their largest one-day percent-
age gains since May 4, coming
off their worst day in more
than a month. The Nasdaq
Composite added 65.86 points,
or 0.9%, to 7462.45.
In Europe, the Stoxx Europe
600 edged up 0.3%, while It-
aly’s FTSE MIB Index erased
some of its recent declines and
climbed 2.1%.
U.S. bank stocks, which were
among the hardest hit Tuesday
Laggard
The Indian rupee is Asia’s worst-performing currency this year.
10%
8 Yuan
6 Rupiah
4
2 election seen as a bellwether
0 for its success next year.
–2
–4
–6
–8
January February March
Source: WSJ Market Data Group
bank efforts to increase
corporate bond investment
limits and relax government
bond ownership rules for for-
eigners.
”You’ve got emerging mar-
kets selling off, you’ve got the
official told The Wall Street
Journal.
In a letter sent Saturday to
OPEC, reviewed by the Jour-
nal, Iranian Oil Minister Bijan
Zanganeh demanded that the
group support Iran in the face
of U.S. sanctions.
Saudi Energy Minister Kha-
lid al-Falih is set to go to Ku-
wait to mend fences with oil of-
ficials on Saturday. He will be
accompanied by United Arab
Emirates Oil Minister Suhail al-
Mazroui, a key Saudi ally and
OPEC’s president, according to
people familiar with the trip.
Representatives for the en-
ergy ministries of Saudi Arabia
and the U.A.E. and for OPEC
didn’t respond to requests for
comment. Spokeswomen for
Russia’s energy ministry and
Iran’s oil ministry couldn’t im-
mediately comment.
Thursday, May 31, 2018 | B11
Rising
Shares of large lenders including Wells Fargo, Morgan Stanley
and Citigroup erased some of their Tuesday declines.
3.0%
Performance, minute by minute
2.5
2.0
1.5
1.0
0.5
0
9:30 10 11 noon
Wednesday
Source: FactSet
amid worries that debt-heavy
governments like Italy’s could
weigh on the banking sector,
bounced back. The S&P 500 fi-
nancial sector rose 1.9%.
Despite worries that global
tensions could slow the econ-
omy and hurt stocks, some an-
alysts think the earnings back-
drop remains favorable and
could support major indexes in
the coming weeks.
HP Inc. raised its profit
forecast for the year as the
maker of personal computers
.
ly
Yen
Won
Rupee
April May
THE WALL STREET JOURNAL.
dollar strength and oil factors
which make India and the In-
dian rupee an easy target,”
said Andrew Gillan, head of
Asia ex Japan equities at Sing-
apore-based Henderson Global
Investors.
Dollar Declines as Pressure
On Euro Loses Some Force
BY IRA IOSEBASHVILI
The dollar fell against the
euro and a broad range of
other currencies Wednesday,
as investors took stock of the
latest developments in Italian
politics.
The euro late in the day
was up 1.1% at $1.1666. The
WSJ Dollar Index, which mea-
sures the U.S. currency against
a basket of 16 others, was off
0.6% at 87.05. it was the larg-
est one-day percentage decline
in the index since March 21,
2018.
Tensions eased Wednesday
as Italian President Sergio
Mattarella sought a way to
create a new government and
avoid fresh elections.
Mr. Mattarella was consid-
ering the possibility of reviv-
Wells Fargo
Morgan Stanley
Citigroup
1 2 3 4
THE WALL STREET JOURNAL.
and printers topped expecta-
tions for the most recent quar-
ter. Shares added 86 cents, or
4%, to $22.16.
Cloud software firm Sales-
force rose 2.42, or 1.9%, to
129.30 after reporting record
quarterly revenue.
Stocks rose early Thursday
in Asia. Japan’s Nikkei was up
0.5%, Hong Kong’s Hang Seng
Index was up 0.4%, South Ko-
rea’s Kospi was up 0.8% and
the Shanghai Composite was
up 0.4%.
DHIRAJ SINGH/BLOOMBERG NEWS
Domestic politics aren’t
helping. A year ago, analysts
saw a 2019 general election
win for Mr. Modi as almost
certain, but a series of shaky
state polls have made that ap-
pear less likely. His party this
month failed to win enough
seats to control the southern
state of Karnataka, a local
Mr. Modi will need to per-
suade voters that last year’s
chaotic introduction of a
goods and services tax—and
his 2016 move to cancel 86%
of the currency in circula-
tion—were worth it.
Investors worry that Mr.
Modi’s government will, in a
bid to secure another five-year
term, increase spending on
populist measures and put the
reduction of the fiscal deficit
at risk. Opposition parties are
also calling for him to reduce
taxes on retail fuel prices to
soften the blow.
ing a coalition government
supported by Italy’s two large
antiestablishment parties—the
5 Star Movement and the
League—that had seemed
poised to take power last
weekend.
A day before, worries over
the future of the eurozone
sparked by Italy’s political cri-
sis pounded the euro and
other currencies and pushed
investors into the perceived
safety of the dollar.
With tensions running high
and some political leaders
pushing for quick elections,
however, the situation in Italy
can quickly change.
“Italian politics could con-
tinue to prove a drag on capi-
tal markets throughout the
summer,” analysts at DWS
said in a note to clients.
 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.

B12 | Thursday, May 31, 2018 THE WALL STREET JOURNAL.

MARKETS
The Italian Crisis in Seven Charts
3.5% Economic growth in the eurozone
has picked up somewhat…
Change in GDP*
Italy since first-quarter 2008
Turmoil in Italian politics has sent shock waves through financial markets in moves
10%
reminiscent of the eurozone crisis. 3.0
Euro area
Much has changed in Europe over the past six years, with the region’s economy improving
0
and the European Central Bank becoming a prominent buyer of government and corporate
debt. But some things remain the same, such as eye-watering levels of public debt in Italy. Spain
2.5 –10 Italy

–20
Greece
2.0
–30
2008 ’10 ’15

Spain
…but Italian debt levels
1.5 remain high.
General government debt†
as a percentage of GDP
150%
Italian bond yields, the main barometer of risk, have spiraled higher relative to haven
1.0 Italy
German debt as investors have dumped Italian bonds. 125
10-year government-bond yield
100
Germany
75
0.5 Eurozone
50

25

0 0
2017 ’18 2008 ’10 ’15

The ECB, through the Bank of Italy, €400 Liquidity in Italian government Many Italian investment-grade One gauge of re-denomination risk: $300,000
has become a huge buyer of Italian bonds has evaporated as prices 0.7 corporate bonds trade with lower 2.5% Credit-default swaps penned

.
debt. have whipsawed and trading yields than comparable debt issued in 2014 ( ) should protect

ly
conditions worsened. by the Italian government. investors against Italy 250,000
Italian government debt 0.6
held by the Bank of Italy, Italian two-year bond yield, bid-ask 2.0 leaving the euro, analysts say.
300 Italy's two-year bond yield versus
in billions spread, in percentage points selected local companies Contracts dating from before
the eurozone crisis in 2003 ( ) 200,000
0.5
on Italy
Intesa Sanpaolo
1.5 may not.
Cost of default protection on
200 0.4 $10 million of Italian debt
Eni 150,000
1.0
us l,

Wednesday Snam
0.27 percentage point 0.3
100,000
al a
e
0.5
100 0.2
ci on

50,000
0
0.1

0 0
2010 ’15 ’18 Jan. Feb. March April May 0 Jan. Feb. March April May –0.5
Jan. Feb. March April May
er rs

*Adjusted for inflation, the seasons and the changes in the calendar year †Includes central, state, local government and social security fund debt Note: €1=$1.1541
Sources: Thomson Reuters (10-year yield); Eurostat (GDP change, government debt as percentage of GDP); Bank of Italy (government debt held); Tradeweb (bid-ask spread, two-year yield, local companies); IHS Markit (protection) THE WALL STREET JOURNAL.

HEARD ON THE STREET

m e
m rp

Email: heard@wsj.com FINANCIAL ANALYSIS & COMMENTARY WSJ.com/Heard

co Fo

Profit Rise Has Hidden Weakness Spain May Hold Key

According to companies,
profits were great in the first
quarter. According to gov-
ernment data, not so much.
Profits for companies in
the S&P 500 grew a stunning
26.3% in the first quarter
compared with a year earlier,
according to Thomson Reu-
ters I/B/E/S. That measure,
Divergence
tracking each other fairly
well. The split may signal
Change from a year earlier that profit growth is weaker
than it seems, something
60% that the stock market, which
S&P 500 earnings has essentially gone nowhere
U.S. corporate profits this year, seems to agree
40
with. Weaker profits make
sense given the backdrop of
20 rising costs for labor and
n-
To the Eurozone’s Fate
Is the eurozone crisis
back? Italian government
bonds have moved even
more violently than during
2011-12. A key question now
is how far the ripples spread
across the eurozone. Inves-
tors should watch Spain.
require investors to decide
that Spain and Italy share
similar vulnerabilities.
For now, that looks like a
stretch. Yes, Spain faces its
own political challenge in the
shape of a no-confidence
vote in the minority govern-

which is used by investors,
benefited from a strong
global economy, a weakening
dollar and, most of all, a cut
no
other items and lack of pric- Spain and Italy once ment led by Prime Minister
ing power in many indus- traded places on the front- Mariano Rajoy, as well as lin-
0 tries, which combine to line of the eurozone crisis. gering uncertainty over Cata-
squeeze profit margins. Spain was under greater lonia. A snap election could

in the corporate tax rate to
21% from 35%.
But a Commerce Depart-
ment measure of corporate
profits, released alongside
gross-domestic-product data
on Wednesday, showed that
profits rose by just 0.1% in
the first quarter from a year
ago. Take away the tax-cut
benefit, and the numbers
were worse: Before account-
ing for the benefits of the
tax cut, profits were down by
6%. These numbers are the
only ones that show the im-
pact of the tax cut, which
created a divergence of the
pre- and posttax numbers.
–20
2010 ’11 ’12 ’13
Sources: Commerce Department (corporate profits);
Thomson Reuters I/B/E/S (S&P 500 earnings)
There are a number of im-
portant distinctions between
the profits S&P 500 compa-
nies post and the govern-
ment profit figures. Govern-
ment figures largely exclude
companies’ overseas opera-
tions. The government fig-
ures include all U.S. compa-
nies, not just big public ones.
The government figures
also include the one-time
charges that lower earnings
’14 ’15 ’16 ’17
THE WALL STREET JOURNAL.
and are typically excluded
from S&P 500 profit figures.
Lastly, S&P 500 earnings fig-
ures are based on earnings
per share, so they benefit
from the record $178 billion
in first-quarter stock buy-
backs.
None of these differences
have mattered much until
now. The S&P 500 and Com-
merce Department corporate
profit figures had been
This is just one quarter’s
worth of data, and the gov-
’18 ernment figures, which can
be volatile, could bounce
back. And if the tax cut has
the desired effect, it would
eventually boost economic
growth and profits.
But if the trend of weak
earnings continues, it means
that the tax cut provided a
temporary boost to earnings
that have already peaked. If
that is true, investors should
rethink the valuations they
have been willing to pay for
shares. That would make for
an interesting stock market.
—Justin Lahart
pressure in 2012 when Euro-
pean Central Bank President
Mario Draghi’s pledge to do
“whatever it takes” turned
the tide.
This time around, Spain’s
bonds have only stumbled—
the 10-year yield has risen to
just over 1.5% from a low be-
low 1.2% in April—while It-
aly’s have been hammered.
The gap between Spanish
and Italian 10-year yields has
hit levels not seen since
2011; the gap between Spain
and Germany, at 1.2 percent-
age points, was often seen in
2017.
That Spanish bonds get
caught up in bouts of risk
aversion is a legacy of the
jangle nerves. But there is
nothing like the uncertainty
caused by Italy’s crisis.
The political climate in
Spain is much more pro-Eu-
ropean, perhaps because its
economy has been growing
at a 3% clip in recent years,
far above the pace recorded
by Italy. Spanish unemploy-
ment also has fallen sharply
in recent years. Meanwhile,
the strong market forces
that drove eurozone yields
down in recent years are still
in play, with the ECB ex-
pected to exit only gradually
from its monetary stimulus.
During the previous crisis,
a lot of eurozone countries
looked alike, creating conta-

The Real End Game for CBS-Viacom
Investors in CBS and Via-
com may be growing fretful.
They have good reason. On
Tuesday, Shari Redstone and
her family holding company,
National Amusements, sued
CBS, countering the angry
lawsuit CBS filed against Ms.
Redstone and National
Amusements two weeks ago.
The back-and-forth legal
attacks have plunged both
companies into uncertainty
and paralyzed any deal mak-
ing. Yet investors may still
want to stay in the game.
In a little-noted part of the
complaint filed on Tuesday,
National Amusements made
it clear that a deal between
CBS and Viacom isn’t actually
the final goal. The merger, it
suggests, would be the pre-
The latest lawsuit says
Deal Drama Ms. Redstone and National
CBS share price over the past year Amusements “are open to
eventually relinquishing
$70 NAI’s voting control” if there
was a deal. As recently as
65
2012, Sumner Redstone, Ms.
60 Redstone’s father, insisted he
55 would never sell Viacom or
CBS, and that his estate
50 planning precludes the trust
from selling the family’s con-
45
trolling interest “unless they
2017 ’18 start doing terribly, which
Source: WSJ Market Data Group they will not.”
The Redstone family’s de-
cursor to a sale, “better posi- parture from the media and
tioning the companies for a entertainment business
larger transaction in which would represent the second
the combined entity could potential exit of a powerful
fetch an attractive premium media family, triggered by a
that neither CBS nor Viacom pressured industry and an
alone could command.” aging mogul. Last December,
Rupert Murdoch, executive
chairman of 21st Century
Fox, agreed to sell key parts
of his empire to Disney in a
$52.4 billion deal. (Fox and
Wall Street Journal parent
News Corp share common
ownership.)
Comcast is trying to tor-
pedo that deal with its own
bid for the Fox assets. If it
fails in its pursuit of Fox, it
could try to buy the CBS-Via-
com assets instead. Investors
dreading a prolonged legal
battle should keep this in
mind. Verizon has report-
edly expressed interest, too.
The immediate future
doesn’t look pretty, but if
Ms. Redstone wins and ends
up selling, it may be worth
the wait. —Elizabeth Winkler
crisis. All Southern European
government bonds are recog-
nized as containing a mix of
credit and interest-rate risk.
So some spillover is unavoid-
able. Real contagion would
OVERHEARD
Miracle of miracles, obser-
vant Jews the world over can
now have a cheeseburger!
While eating milk and meat to-
gether are a no-no according
to kosher dietary laws, the Or-
thodox Union has given its seal
of approval an incredibly realis-
tic beef substitute made by
Impossible Foods, according to
Tablet Magazine.
In terms of sheer numbers,
the development might not be
a huge commercial break-
through.
gion. Now Italy really stands
out. The current selloff in
Spanish debt looks more like
an opportunity than a reason
for concern.
—Richard Barley
There are, for example, 23
times as many vegetarians on
earth as there are Jews, most
of whom don’t keep kosher
anyway. And there are about
70 times as many Hindus,
many of whom shun eating
beef or meat altogether. The
cost, the taste and even the
very idea of fake meat need to
appeal to this far larger audi-
ence.
Still, now that fake beef an-
swers to a higher authority,
nothing is impossible.