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RETIREMENT IS YEARS AWAY
BUT YOU CAN FEEL BETTER NOW.
Our Financial Consultants are here to help you plan. Flip to page R12 to learn more.
Last week: DJIA 23422.21 g 116.98 0.5%
What’s
News
Business & Finance
E’s new CEO plans to
G unveil a road map for
the conglomerate that will
focus on three of its big-
gest business lines, but
stops short of a more radi-
cal restructuring. A1
 Uber cleared the way
for a multibillion-dollar in-
vestment led by SoftBank,
giving the company a pow-
erful ally in its battle
against global rivals. A1
 The ride-hailing com-
pany has no way to raise
drivers’ hourly wages, de-
spite fluctuating fare
prices, a study found. B3
 Brookfield made a $14.8
billion offer to acquire the
shares of GGP that it
doesn’t already own. B1
 Wal-Mart wants to
charge more for some of
its products online than
they cost in stores. B1
 A rally that has sent
stock indexes around the
world to records showed
signs of stalling, with the
Dow posting its worst
week since September. B1
 Orbital launched a ci-
vilian cargo capsule into
orbit, the second success-
ful flight of the redesigned
Antares rocket. B3
 Trump’s financial regula-
tory team is sounding a
friendlier tone for banks
than its predecessor, which
restricted the industry fol-
lowing the 2008 bailouts. B6
World-Wide
 Trump said he had full
confidence in the U.S. intelli-
gence agencies and indicated
he believed their report that
concluded Russia meddled in
the 2016 election. A4
 After the Texas church
shooting, some congrega-
tions are considering
whether to protect them-
selves by bringing firearms
into houses of worship. A3
 Lebanon’s Hariri said he
will return to Beirut within
days, after his de-facto exile
in Saudi Arabia amid tensions
between Riyadh and Iran. A6
 White House officials
said they didn’t have
enough information to
judge whether Moore
should withdraw from the
Senate race over allegations
of sexual misconduct. A4
 Iraqi forces wasted no
time erasing the legacy of
three years of Kurdish rule
in Zumar, replacing pictures
and defacing murals. A6
 A 7.2 magnitude earth-
quake jolted the region be-
tween Iraq and Iran, kill-
ing at least 140. A6
 China’s Xi is exhorting
state media to do more to
portray the nation as a
builder of global peace. A8
 An election at the U.S.
Catholic bishops conference
is seen as a test of support
for Pope Francis. A3
CONTENTS
Business & Fin... B2-3
Crossword.............. A14
Heard on Street... B11
Journal Report.. R1-12
Life & Arts....... A11-13
Markets............. B10-11
s Copyright 2017 Dow Jones &
Company. All Rights Reserved
* * * * *
NASDAQ 6750.94 g 0.2%
On the Seventh Day, a Small-Town Church Became a Monument
ERIC GAY/ASSOCIATED PRESS
REMEMBRANCE: A week after a gunman slaughtered worshipers at the First Baptist Church in Sutherland Springs, Texas, flowers were
placed in a fence outside the church, which reopened Sunday as a memorial to the 26 victims. A3
GOP Bets on a Simpler Tax Code
BY RICHARD RUBIN
WASHINGTON—As Republi-
cans move forward on their
tax bills this week, part of
their pitch is that 9 in 10
Americans would ultimately be
able to file returns the size of
postcards. While the plans
don’t make tax filing quite that
easy, they do mark a step to-
ward a simpler system.
A Mall Owner Goes Shopping
Brookfield Property has made a $14.8 billion offer to buy the
shares of mall owner GGP, formerly General Growth Properties,
that it doesn’t already own, say people familiar with the matter. B1
52-week share performance
20%
10
0
–10
–20
–30
2016 ’17
Source: WSJ Market Data Group
Uber Ends Board Spat,
Sets Up Softbank Deal
BY GREG BENSINGER
Uber Technologies Inc.
cleared the way for a multibil-
lion-dollar investment led by
SoftBank Group Corp. that
will transform the corporate
structure of the world’s most
valuable startup and give the
ride-hailing company a pow-
erful ally in its battle against
global rivals.
The deal, confirmed Sun-
day by Uber, took shape after
former Chief Executive Travis
Markets Digest..... B8 Kalanick and a major investor,
Opinion.............. A15-17
Sports....................... A14 Benchmark, reached agree-
Technology............... B4 ment over control of board
U.S. News............. A2-4 seats, including putting on
Weather Watch.. A14
World News..... A6,8-9
hold a lawsuit against the for-
mer chief, according to people
>
familiar with the matter. The
two sides appeared to be at
an impasse just days ago.
Once completed, the deal
will add six directors and in-
troduce voting changes that
will effectively limit Mr. Ka-
lanick’s power on the board,
MONDAY, NOVEMBER 13, 2017 ~ VOL. CCLXX NO. 114
STOXX 600 388.69 g 1.9%
The GOP plans would repeal
the alternative minimum tax, a
parallel tax system affecting
more than four million house-
holds. The House bill
would consolidate a tangle of
tax breaks for higher education.
Both plans would remove—tem-
porarily—thorny depreciation
rules. Narrow deductions for
tax-preparation fees, teachers’
out-of-pocket expenses and
Brookfield Property Partners
GGP
THE WALL STREET JOURNAL.
the people said. It also brings
Uber needed stability after a
year of turbulence: The San
Francisco-based company is
still grappling with the fallout
from a former software engi-
neer’s charges of sexual ha-
rassment, among other scan-
dals that led a group of
investors to push out Mr. Ka-
lanick in June.
An investment by SoftBank
also represents an early win
for new CEO Dara Khosrow-
shahi. He is working to over-
haul Uber’s workplace culture
while also battling regulators
from Brazil to the United
Kingdom over proposed rules
that would curtail the com-
pany’s ability to operate.
“It’s a pretty great reset
for the company,” said Brad-
ley Tusk, a political strategist
and investor in Uber. “Every-
Please see UBER page A9
 Uber fare changes found to have
no effect on drivers’ pay............. B3
ADVERTISEMENT
WSJ.com HHHH $4.00
10-YR. TREASURY yield 2.397% OIL $56.74 À $1.10 EURO $1.1665 YEN 113.54
GE Sets
Focus on
Three
Key Units
New CEO’s plans
stick to health care,
power and aviation,
stop short of breakup
BY THOMAS GRYTA
General Electric Co.’s new
leader plans to unveil a road
map Monday for the conglom-
erate that will focus on three
of its biggest business lines,
but stops short of a breakup
or more radical restructuring
of the 125-year-old giant.
Chief Executive John Flan-
nery, who has been conducting
a strategic review since he
took over on Aug. 1, is ex-
pected to focus on GE’s avia-
tion, power and health-care di-
visions, one person familiar
with the matter said. The CEO
will look to exit most of the
rest of its operations.
GE would be pulling back
from its transportation unit,
one of the oldest and biggest
moving costs would vanish un- GOP’s promise to voters, but makers of diesel locomotives,
der the House plan, removing for many filers, a simpler tax as well as GE Lighting, which
lines from tax forms and pages code without the breaks they traces its roots to Thomas Edi-
from Internal Revenue Service use the most could leave them son and makes LED bulbs and
publications. paying more. energy management sensors.
The full House and a Sen- Still, “on simplification, it’s While the three divisions
ate committee are each ex- Please see TAXES page A4 will be the core of GE, Mr. Flan-
pected to vote this week on the nery is expected to stress at a
competing plans, as Republi-  White House holds back on meeting Monday with investors
cans push to have a tax bill Senate candidate Moore..... A4 and analysts that he will regu-
signed into law by year-end.  The Daily Shot: Tax plans larly evaluate all of the com-
Simplification is part of the tweak American dream...... B11 Please see GE page A2
China-Made Security Cameras
Are Hanging All Over the U.S.
Company with ties to government sparks cybersecurity concerns
The Memphis police use the surveillance nurtured by Beijing to help keep watch on its
cameras to scan the streets for crime. The 1.4 billion citizens, part of a vast expansion of
U.S. Army uses them to monitor a base in its domestic-surveillance apparatus. In the
Missouri. Consumer models hang in homes process, the little-known company has become
and businesses across the country. At one the world’s largest maker of surveillance cam-
eras. It has sold equipment used to track
By Dan Strumpf, French airports, an Irish port and sites in Bra-
Natasha Khan zil and Iran.
and Charles Rollet Hikvision’s rapid rise, its ties to the Chinese
government and a cybersecurity lapse flagged
point, the cameras kept watch on the U.S. em- by the Department of Homeland Security have
bassy in Kabul. fanned concerns among officials in the U.S.
All the devices were manufactured by a sin- and Italy about the security of Hikvision’s de-
gle company, Hangzhou Hikvision Digital vices.
Technology. It is 42%-owned by the Chinese “The fact that it’s at a U.S. military installa-
government. tion and was in a very sensitive U.S. embassy
Hikvision (pronounced “hike-vision”) was Please see CHINA page A10
INSIDE B’ful Bride Seeks H’som Groom:
Matchmaking in 125 Characters
i i i
India’s parents use abbreviation-stuffed
newspaper ads to arrange marriages
MAP OUT BY ERIC BELLMAN roughly 125-character newspa-
per ads, which traditionalists
RETIREMENT To find marriage partners insist are the best way to meet
LOCATIONS for their sons and daughters, serious candidates, as opposed
parents across India are hoping to the ads on countless internet
for an I’less PQ T’tot, preferably marriage sites.
JOURNAL REPORT, R1 W’stld at a PSU. The websites “are all full of
They’re speak- mischievous peo-
ing the language ple,” said R.K.
of “matrimo- Agarwal, who
nials,” the abbre- spent years cir-
viation-stuffed cling newspaper
marriage ads that ads with a pen
are still a Sunday every Sunday to
staple in papers find matches for
read by hundreds his son and
RIYADH IS of millions in In-
dia, where family
Matrimonial ads daughter. He said
website ads,
DELIVERING elders commonly take the lead which allow for longer descrip-
ON VISION 2030 in the search for suitable tions and include photos, can
spouses. easily be faked, and don’t re-
The codes are necessary to quire enough effort to weed out
OPINION, A17 cram as much enticing informa- insincere people. “Newspapers
tion as possible into the Please see ADS page A10
 For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
A2 | Monday, November 13, 2017
THE OUTLOOK | Jon Emont
Global Trade Faces Long-Term Risks
Hong Kong
A
synchronous upturn
across major econo-
mies is reviving hopes
that a multiyear lull in global
trade is finally reversing and
will lift emerging markets
that built their economies
around exports.
In Asia, the world’s fac-
tory floor, exports are up
sharply, including gains of
18.5% from a year ago in
South Korea, nearly 11% in
Singapore and 20% in Viet-
nam. Chinese exports are up
5.5%, a rebound from the
past two years, when exports
contracted.
But it may be too early to
celebrate. Much of the export
growth in Asia comes from
demand for semiconductors,
partly to power smartphone
launches like Apple Inc.’s
iPhone X. That chip demand
is expected to fade next year.
Economists warn that some
of the recent gains look
strong when compared with
2016, a weak year for global
trade, but that year-over-
year comparisons will be-
come less favorable in 2018.
Headwinds facing global
trade are still blowing. Wash-
ington is pressing ahead with
challenges to its trading
partners, including Korea
and China. Indeed, rising
trade tensions were evident
VINCENT KESSLER/REUTERS
GE Power, which supplies turbines for power plants, will be a major focus at Monday’s meeting with investors and analysts.
GE
Continued from Page One
pany’s portfolio of businesses
as part of how he leads the
conglomerate, the person said.
The Boston-based company
also plans to eventually shed its
majority stake in Baker Hughes,
which became a separate public
company in July after merging
with GE’s oil and gas opera-
tions, this person said.
GE owns 63% of Baker
Hughes, which had a market
value of $40 billion based on
Friday’s close. While it intends
to exercise its option to exit
Baker Hughes, the process
hasn’t started and would be
subject to some discussion be-
tween the companies’ boards,
the person said. Under the cur-
rent arrangement, GE is re-
stricted from selling its stake
for several years.
Mr. Flannery is expected to
streamline GE’s corporate
functions, this person said.
The company has about
24,000 people outside of its
major divisions, in research,
digital and headquarters func-
tions. More research work will
be moved into specific busi-
ness units, and software devel-
opment will be limited to the
company’s core industries,
people familiar with the mat-
ter have said.
It is unclear how many jobs
would be affected by the re-
structuring moves, and Mr.
Flannery isn’t expected to an-
nounce a specific target on
Monday, the person familiar
with the matter said. GE em-
ployed about 295,000 people
at the end of 2016.
The meeting will give a
broad road map and outline a
continuing process, but won’t
detail every component of Mr.
Flannery’s pledge to sell more
at a Pacific Rim summit Fri-
day, when President Donald
Trump repudiated decades of
U.S. support for multilateral
trade liberalization in the re-
gion. Debt levels are growing
across the world, including
in China, which could con-
strain consumption and in-
vestment.
Demographic trends may
also make it harder for goods
trade to accelerate, as aging
populations in the developed
world spend more on ser-
vices like health care. Some
Asian exporters have demo-
graphic challenges of their
own, including shrinking
pools of low-cost labor.
“We think it’s not going to
last,” Trinh Nguyen, senior
economist at Natixis, said of
the recent strong export
numbers for some countries.
“I don’t think trade is going
to contract, but I think the
growth rate is going to slow.”
Of course, any new de-
mand for exports is welcome
in Asian countries that built
their economic models
around selling to the rest of
the world.
Europe, a key trading
partner for Asian economies,
is finally emerging from its
post-financial crisis hang-
over, fueling demand for ev-
erything from sneakers to
electronics. In Japan, long-
than $20 billion worth of as-
sets, the person said. People
close to the process say GE
Transportation, which makes
locomotives, is part of that
plan. The exit from Baker
Hughes isn’t considered part of
the $20 billion plan, said the
person familiar with the matter.
Mr. Flannery and the GE
board have been reviewing the
company’s dividend, though it
is unclear what has been de-
cided. GE has struggled to
generate enough cash flow
from its industrial operations
Mr. Flannery is
expected to
streamline GE’s
corporate functions.
to cover the $8 billion payout
in recent years, especially as it
has pared down its GE Capital
unit. It cut the dividend by
half in 2009 during the finan-
cial crisis.
GE shares are down 35%
this year, hitting levels not
seen since 2012, compared
with a gain of 15% for the S&P
500. The company has lost
$50 billion in market value
since mid-July, when investors
were told to wait almost four
months for Mr. Flannery to
complete an internal review
and reset long-term financial
projections. The stock closed
Friday at $20.49.
Some investors and ana-
lysts have called on GE to re-
duce the dividend, saying the
company cannot afford to con-
tinue the payout. Others are
pushing for more radical
changes to its operations, in-
cluding breaking up the com-
pany or selling off bigger
units, such as GE Healthcare,
U.S. NEWS
Bouncing Back
Change from a year earlier in
exports for 2017*
Vietnam
South Korea
Indonesia
Malaysia
Taiwan
India
Singapore 10.7
Thailand 9.3
China 5.5
*Through September
Source: CEIC
THE WALL STREET JOURNAL.
depressed consumption has
risen steadily. U.S. growth
has picked up in the nation’s
eighth year of expansion.
Buoyed by global growth,
South Korea’s gross domestic
product expanded at the fast-
est pace in seven years last
quarter and is expected to
grow 3% this year. Singa-
pore’s economy grew at its
fastest pace in more than
three years last quarter, and
the government expects
growth to approach 3%, too.
Yet while 3% is considered
solid growth for both coun-
which makes MRI machines
and other hospital equipment.
Aviation, power and health
care accounted for about 58%
of the company’s revenue at
the end of 2016 and 156,000
employees. The company has
already made some changes to
the divisions this year, such as
merging the energy connec-
tions division into GE Power
for a projected $1 billion in an-
nual cost savings.
GE Aviation is one of the
top manufacturers of jet en-
gines and enjoyed healthy or-
ders in recent years as it
rolled out a new generation of
products. GE Healthcare was
run by Mr. Flannery until the
summer; he led a turnaround
of the unit driven by cost re-
ductions and expanding its
services to drugmakers.
GE Power, however, which
supplies turbines for gas and
coal-fired power plants, has
struggled with its former man-
agement misjudging market
demand and carrying excess
inventory, the company has
said. The business will be a
major focus at the Monday
meeting as division head Rus-
sell Stokes is one of four pre-
senting executives.
CORRECTIONS  AMPLIFICATIONS
Data from the Peterson
Institute for International
Economics showed that the
dollar was 5% overvalued
through July, based on the
group’s economic calcula-
tions. A Markets article on
Friday incorrectly said the
Peterson Institute estimated
the dollar was 5% underval-
ued and incorrectly gave the
name of the institute as the
Readers can alert The Wall Street Journal to any errors in news articles by
emailing wsjcontact@wsj.com or by calling 888-410-2667.
tries, it is slow compared
with the 1980s and 1990s,
when South Korea and Singa-
pore regularly grew well
above 10%. Even during the
2000s, both countries consis-
20.1% tently notched 5% growth.
18.5 And while the World
Trade Organization estimates
17.5 global trade will rise 3.6% in
2017, that pales compared
14.1
with the two decades leading
13.9 up to the financial crisis,
when trade grew on average
13.6 at about 6% a year.
“We’re in the sweet spot
of the global economy; this is
the time when trade growth
should be shooting up,” said
Michael O’Sullivan, chief in-
vestment officer of the inter-
national wealth management
division at Credit Suisse, and
co-author of a report titled
“Getting Over Globalization.”
Because some of the in-
dustries driving today’s
growth in Asia are so cycli-
cal, the risk of a sharp swing
looms.
The semiconductor market
grew 17% this year but is ex-
pected to expand 4% next
year and even more slowly in
2019, as supply catches up
with demand, according to
the World Semiconductor
Trade Statistics. East Asia
makes roughly 70% of the
world’s semiconductors.
Policy makers across Asia
Former CEO Jeff Immelt re-
vamped GE over his 16 years,
getting out of media, plastics,
appliances and most of financial
services, but also made some ill-
timed deals on the oil patch and
power markets.
Mr. Flannery hasn’t been
waiting for the investor meet-
ing to make high-profile
moves. He has delayed parts
of a new Boston headquarters
project, grounded the corpo-
rate jets, moved to shut down
research centers, and started
thousands of layoffs.
After lowering profit targets
in October, the new CEO
pledged to cut an additional $1
billion in annual spending. Un-
der pressure from activist Trian
Fund Management, Mr. Immelt
had planned to cut $2 billion in
costs by the end of 2018.
Mr. Flannery, who has spent
his entire 30-year career at GE,
has made management changes
to many divisions and replaced
chief financial officer Jeff
Bornstein with Jamie Miller,
who will be in the spotlight
Monday. Mr. Flannery is also
looking at the makeup of the
company’s board, suggesting
he will shrink it, and recently
gave Trian a seat.
Peterson Institute of Interna-
tional Economics. An accom-
panying chart also incor-
rectly stated value estimates
from the Peterson Institute
for the dollar and other cur-
rencies. The corrected esti-
mates are in an updated on-
line version of the chart at
https://www.wsj.com/articles/
w h a t s - a - d o l l a r -
worth-1510234254.
* *** THE WALL STREET JOURNAL.
ECONOMIC
CALENDAR
TUESDAY: Germany and It-
aly release gross domestic
have been trying to become product figures for the third
less reliant on trade. South quarter, rounding out a European
Korean President Moon Jae- picture that points to a slight
in announced a 16% hike in slowdown from a robust first
the minimum wage for the half of the year. As with the eu-
start of 2018, along with big rozone as a whole, the German
increases in government economy is estimated by econo-
spending, a bid to drive up mists to have decelerated mod-
wages and consumption. estly during the period. The Ital-
Many economists support ian economy is estimated to
the push for more spending have sustained its recent pickup
in principle but worry about for a fourth straight quarter.
whether government is a The U.K.’s statistic agency
sustainable answer. releases October consumer-
price inflation, following the
I
n China, despite recover- Bank of England’s decision to
ing exports, analysts raise interest rates for the first
worry about risks of a time in a decade this month. In-
prolonged economic slow- flation in the U.K. has acceler-
down, mainly because of ated after the Brexit vote last
high debt levels, struggles year, squeezing consumer spend-
with industrial overcapacity ing and damping growth in the
and likely unsustainable real- largely domestic-driven economy.
estate booms. In Singapore, WEDNESDAY: Japan re-
the government has stepped leases GDP figures for the July-
up public spending even as it September period (release time
continues promoting indus- is Tuesday evening in the U.S.).
tries such as financial ser- The numbers are expected to
vices and tourism. Those in- show the country’s seventh
dustries have indeed grown, straight quarter of growth.
though not so much that The U.S. Labor Department
Singapore can expect to see releases October U.S. consumer-
much faster overall growth, price index figures, after prices
economists say. rose 0.5% in September because
“Once the cyclical recov- of higher gasoline costs. Underly-
ery of trade slows down, it’s ing inflation appeared tame, po-
going to be very difficult to tentially raising questions for Fed-
grow if [Singapore] doesn’t eral Reserve policy makers who
have domestic demand to have been waiting for signs of ris-
generate this,” said Ms. ing inflation before lifting interest
Nguyen of Natixis. rates for a third time this year.
Racketeering Trial
To Air Soccer Deals
BY REBECCA DAVIS O’BRIEN Brazil’s soccer federation
from 2012 through early
NEW YORK—The wide- 2015. Mr. Marin—the only de-
ranging allegations of corrup- fendant remaining of the
tion in soccer’s governing seven arrested in Zurich two
body are set to arrive in a years ago—faces seven
Brooklyn courtroom this counts, including money-
week, claims that center on laundering and wire-fraud
decades of alleged bribery conspiracy.
and kickbacks involving inter- Juan Ángel Napout, a for-
national soccer tournaments. mer FIFA vice president who
The racketeering trial of led the Paraguayan soccer
three former heads of Latin federation and Conmebol, the
American soccer federations, South American soccer feder-
including a former vice presi- ation, is charged in five of
dent of FIFA, is scheduled to the counts. Manuel Burga, the
begin Monday in federal former president of Peru’s
court. Jurors will consider
U.S. prosecutors’ argument
that the sport’s governing
body was, in essence, a
Allegations of bribery
sprawling criminal enter- center on media and
prise.
The trial represents a cap-
marketing rights for
stone of a yearslong investi- FIFA tournaments
gation by U.S. law enforce-
ment, which alleged schemes
involving two generations of
soccer officials across the
globe and more than $200
million in bribes in connec-
tion with media and market-
soccer federation, faces a sin-
gle count of racketeering con-
spiracy, in which all three
men were charged.
ing rights for soccer tourna- Lawyers for the men
ments. couldn’t be reached for com-
Prosecutors are expected ment. A spokesman for the
to reveal new details about Brooklyn U.S. attorney’s of-
the complicated ways the de- fice declined to comment on
fendants allegedly moved the trial.
cash to avoid detection and In June, prosecutors con-
information about how the solidated the charges against
money was spent, according the three men into a single
to a person familiar with the racketeering case, outlining
matter. alleged schemes to receive
Evidence and witness tes- bribes and kickbacks from
timony could also disclose sports marketing executives
additional schemes involving in connection with marketing
foreign governments and and media rights for regional
multinational companies en- soccer tournaments, includ-
tangled in alleged wrongdo- ing the Copa America and
ing, the person said. World Cup qualifying games.
Since prosecutors first un- In one alleged scheme, Mr.
veiled charges in May 2015, Marin is accused of accepting
after the predawn raid on Zu- bribes from a sports market-
rich’s luxury Baur au Lac ho- ing company seeking com-
tel, the case has ensnared in- mercial rights to the Copa do
ternational banks, apparel Brasil tournaments from 2015
businesses and media organi- through 2022. Mr. Marin is
zations and led to indict- also accused of soliciting and
ments against more than 40 accepting bribes to secure
people and entities, 23 of sponsorship rights to the
whom have pleaded guilty in Copa Libertadores.
the matter. —Nicole Hong
Among those on trial is and Sara Germano
José Maria Marin, who led contributed to this article.
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THE WALL STREET JOURNAL.
Texas Church Reopens as a Memorial
Chairs at First Baptist
now mark where each
of the 26 victims fell
in the massacre
BY TAWNELL D. HOBBS
SUTHERLAND SPRINGS,
Texas—The white chairs are
arranged in odd clusters, each
one with a single red rose: two
together off to the side;
around 10 in the back corner; a
single chair on the altar of this
little church where a gunman
shot much of the congregation
a week ago.
The chairs mark where each
of the 26 victims fell. The un-
born child of Crystal Holcombe
is represented by a separate
chair with a pink rose, next to
the mother’s.
One week after the murders,
the First Baptist Church of
Sutherland Springs reopened
its doors. The floors and walls
were painted white. It is re-
born as a stark, but powerful
memorial.
The memorial also provides
a horrific map to the killings;
it encompasses the entire
sanctuary. White chairs are
scattered throughout the
room, some in clusters and
some alone.
Faithful Balance Security, Openness
BY IAN LOVETT
AND ERIN AILWORTH
As he does every Sunday,
the Rt. Rev. Council Nedd II, an
Anglican rector, put on his col-
lar and robes to offer Mass at
his central Pennsylvania
church. Now, he is considering
wearing something else with
his religious vestments: his
handgun.
As a Pennsylvania state
constable, Dr. Nedd can bring
his gun just about every-
where—to the grocery store, to
the park and to synagogues
and other houses of worship,
where he often acts as security.
His church was the one place
where he went unarmed.
“Weapons do not belong in
church,” he said. But, as a
bishop, he has “a responsibility
to protect the flock,” he added.
Dr. Nedd said he didn’t bring
his weapon to church this Sun-
day, but plans to in the future.
A week after a shooting at a
Texas church left 26 dead and
20 more wounded, congrega-
tions gathering for worship
around the country Sunday
once again faced the question
of security. Long the last fron-
tier where many gun owners
went unarmed, the faithful are
Vote to Test Pope’s Sway Over Bishops
BY IAN LOVETT
AND FRANCIS X. ROCCA
Nearly five years into Pope
Francis’ reign as leader of the
Catholic Church, theologically
conservative Catholics around
the world are growing more
outspoken in opposition to his
agenda. The U.S. has been a
major hub of resistance.
Now, with the U.S. Confer-
ence of Catholic Bishops set to
gather for their annual meet-
ing starting on Monday, an
election for a relatively ob-
scure post—chairman of the
committee on Pro-Life Activi-
ties—is emerging as a barome-
ter of support for Pope Francis
among the American hierar-
chy.
The vote is down to two
candidates—Cardinal Blase
Cupich, of Chicago, and Arch-
bishop Joseph Naumann, of
Kansas City—who represent
the ideological poles of the
U.S. church and have articu-
lated different visions of what
being pro-life should mean.
Archbishop Naumann, a
prominent conservative within
the church, is more ideologi-
cally aligned with Popes John
Paul II and Benedict XVI, Pope
Francis’ immediate predeces-
sors, than with the current
pope.
Cardinal Cupich, a promi-
nent liberal who was elevated
to cardinal by Pope Francis
last year, is seen as a close ally
of the pontiff.
The outcome, church offi-
cials and observers said, will
be an indication of the pope’s
ability to point the
U.S. church—one of the largest
and wealthiest communities of
Catholics in the world—in the
* * * *
Most of the congregation
was either killed or wounded,
and there have been few first-
hand accounts of the events
inside the church. But survi-
vors said the gunman, identi-
fied as a 26-year-old Air Force
veteran, sprayed bullets into
the congregants, shot those
who tried to flee, and paced
the pews, shooting victims at
close range.
Noah Holcombe, 17 months,
died next to her father, Marc
Daniel Holcombe. Megan Hill,
9, died next to her sister Emily,
11, and their mother Crystal,
36, as well their brother, Greg
Hill, 13.
A chair for Karla Holcombe,
the Holcombe grandmother, is
by itself at the front of the
church near the altar.
Church leaders said they
hope that the memorial, which
will be open weekdays from 10
a.m. to 10 p.m., can help the
community recover.
The First Baptist Church on
Sunday held its first service
since the murders. It was in a
tent in a field a few blocks
from the church, and included
remarks from the church’s pas-
tor, Frank Pomeroy.
“We can’t allow the act that
happened last weekend to keep
us from church,” Mr. Pomeroy
said. “God is not dead.”
now considering whether they
should bring firearms to their
houses of worship as well.
Sutherland Springs, Texas,
where last week’s shooting
took place, is a town full of gun
owners. One man who lived
near the church engaged in a
firefight with the attacker, 26-
year-old Devin Patrick Kelley,
after hearing the gunshots and
pursued Kelley as he exited the
church, hitting him twice.
Since 2012, there
have been at least 12
deadly shootings at
houses of worship.
But many locals said they
didn’t bring weapons into their
house of worship.
Tomie Barker, who attends
Christ Lutheran Church of Elm
Creek in Seguin, Texas, about
15 miles north of Sutherland
Springs, said her husband
didn’t have the firearm he is li-
censed to carry on him when
their church was locked down
following the shooting at the
nearby First Baptist
Cardinal Blase Cupich, left, is vying to head the committee on Pro-
Life Activities. The liberal is seen as a close ally of Pope Francis.
direction he intends. It will
also suggest what role the
church might play in coming
political battles in the U.S.
The committee has tradi-
tionally been led by a cardinal,
an indication of its importance
to the bishops. If Archbishop
Naumann wins, it will be seen
as a rejection of Pope Francis’
agenda—and a sign of contin-
ued resistance to him in the
American church.
“The election does kind of
encapsulate a battle going on
in the church,” said Patti
Miller, author of “Good Catho-
lics: The Battle Over Abortion
in the Catholic Church.” “It’s a
perfect read on this current
moment in the church—if peo-
ple are going to go the John
Paul II way or the Pope Fran-
cis way.”
Over the past year, Pope
Francis has faced increasingly
open criticism, both in the U.S.
and elsewhere, from theologi-
cal conservatives, largely in
Monday, November 13, 2017 | A3
U.S. NEWS
RICK WILKING/REUTERS
Chairs and roses show where people were found dead a week ago at the First Baptist Church in Sutherland Springs, Texas.
©T&CO. 2017
Church. But, she said, he open carry of firearms for the
planned to have it with him on same reason. He suspects some
Sunday. congregants with concealed-
Ms. Barker, 60, thinks other carry permits do bring their
worshipers will feel the same, firearms.
and said she told her pastor “Frankly, it brings some
the church should probably comfort,” Dr. Graham said of
make note of who is armed in the armed church members. “If
case another emergency arises. there had been someone with a
Houses of worship are weapon in that little church, IT’S TIME TO START THINKING ABOUT
among the softest of soft tar- maybe that could have been THE PERFECT PRESENT
gets, with missions and tradi- prevented.”
tions emphasizing welcoming. But not every house of wor-
Since 2012, there have been at ship can afford private secu-
least a dozen deadly shootings rity. Smaller churches are now
at houses of worship. considering arming the congre-
After the mass shooting, gation or clergy.
Ken Paxton, the Texas attorney Tambria Read, a school-
general, said churches needed teacher and chairwoman of the
armed protection. Sutherland Springs Historical
Prestonwood Baptist Museum, owns a gun and sup-
Church, a megachurch in Plano, ports people being able to
Texas, announced last week carry them, but had always
that it would be holding a free preferred to keep firearms out
seminar on church security. of religious spaces.
Representatives from more “I’m not too crazy about
than 300 churches signed up guns in church—somebody
within three days. could take the gun and do
With roughly 12,000 attend- something,” said Ms. Read, 59,
ees at its services every Sun- who sometimes worshiped at
day, Prestonwood has armed the First Baptist Church but
security guards. Jack Graham, wasn’t there last week. “Maybe
the church’s pastor, said the somebody in a church needs a
church had resisted putting in gun, someone strategic, but
metal detectors so that the not everybody in a pew.”
church would continue to feel —Tawnell D. Hobbs
welcoming, and didn’t allow contributed to this article.
800 843 3269 | TIFFANY.COM
That position has prevailed
among bishops in recent
years, and has frequently put
them at odds with Democratic
politicians.
CHRIS WALKER/CHICAGO TRIBUNE/ASSOCIATED PRESS
In an interview, Archbishop
Naumann played down compe-
tition with Cardinal Cu-
pich, and said he would keep
the pro-life committee’s focus
on abortion and euthanasia.
“The vast majority of bish-
ops see this as the moral crisis
of our time,” he said, referring
to abortion. “The church’s
leadership in this area is ex-
tremely important.”
He said he wanted to “build
upon” the church’s leadership
on abortion, adding, “Abso-
lutely, we have to be out there
advocating for immigrants, for
response to his teaching that migrants, for the care of the
suggested divorced and remar- poor. But that would be a real
ried Catholics may, in at least shift to put that all under the
some cases, receive Commu- pro-life secretariat.”
nion. That is exactly the shift
One bishop said the confer- Cardinal Cupich has advo-
ence was roughly split into cated—a move that would put
thirds: one third who sup- the bishops more in line with
ported Pope Francis, one third Pope Francis.
more in line with Pope Bene- In a 2015 op-ed for the Chi-
dict, and one third in the mid- cago Tribune, the cardinal
dle. pushed for a “consistent ethic
The pro-life committee of life.”
election, the bishop said, will People were right to be ap-
provide a measure of whether palled by abortion practices,
the group in the middle is he wrote, but added, “we
moving toward Pope Francis’ should be no less appalled by CLASSIMA Starting at
approach. the indifference toward the Collection $990
Like all the bishops, both thousands of people who die
candidates are clear on their daily for lack of decent medi-
opposition to abortion, but cal care…or who are executed
they offer different views of by the state in the name of CHONG HING / Rowland Heights, CA / 626.810.8883
what being pro-life entails—a justice.” GOVBERG / Ardmore, PA / 610.664.1715
question with major implica- A spokeswoman for Cardi-
TIVOL / Kansas City, MO / 816.531.5800
tions for the church’s political nal Cupich said he was un-
alliances. available to respond to re-
Archbishop Naumann em- quests for comment at any www.baume-et-mercier.com
phasizes abortion as the para- time during the two weeks
mount issue. prior to the annual meeting.
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
A4 | Monday, November 13, 2017 P W L C 10 11 12 H T G K B F A M 1 2 3 4 5 6 7 8 9 O I X X **** THE WALL STREET JOURNAL.

U.S. NEWS

Trump Tempers Skepticism on Meddling

After calling former Russians interfered in the elec-
tion and it’s still puzzling as to
intelligence chiefs why Mr. Trump does not ac-
‘hacks,’ president says knowledge that, embrace it and
also push back hard against Mr.
he accepted their report Putin,” Mr. Brennan said.
Treasury Secretary Steven
BY MICHAEL C. BENDER Mnuchin, speaking Sunday on
CNN, responded to the com-
HANOI, Vietnam—A day af- ments by Messrs. Brennan and
ter he called three former heads Clapper by saying, “President
of U.S. intelligence agencies Trump is not getting played by
“political hacks,” President anybody.”
Donald Trump said he had full The CIA declined to com-
confidence in the agencies and ment.
indicated he believed their re- At the press conference with
port that concluded Russia Mr. Quang, Mr. Trump hailed
meddled in the 2016 presiden- Vietnam’s growing middle class

MIKHAIL KLIMENTYEV/AGENCE FRANCE-PRESSE/GETTY IMAGES

tial election. as “a key market for American
But the president’s shift in goods and services,” listing U.S.
tone failed to mollify the tar- energy, agriculture, financial
gets of his remarks, with for- services, aviation, digital com-
mer Central Intelligence Agency merce and defense products as
Director John Brennan saying industries where Americans “are
he believed Mr. Trump was try- able to meet all of your many
ing to “delegitimize” the intelli- commercial needs.” The U.S.
gence community’s conclusion trade deficit with Vietnam has
that Russia had interfered. widened over the past decade,
“Considering the source of exceeding $30 billion last year.
the criticism, I consider that Mr. Trump has focused many
criticism a badge of honor,” Mr. of his public comments on urg-
Brennan said Sunday on CNN. ing China to put more pressure
James Clapper, former direc- on North Korea to dismantle its
tor of national intelligence, ap- nuclear program, and to point
pearing on the same program, President Trump says President Putin is annoyed by repeated questions about Russian meddling in the 2016 U.S. presidential election. out the trade imbalances be-
said Russia poses a continuing tween the U.S. and Asia’s eco-
threat and yet Mr. Trump in- Standing outside the presiden- initially assembled the report. they’re political hacks,” Mr. January that concluded Russia nomic powers.
sisted on “rolling out the red tial palace in Hanoi on Sunday “I am with our agencies, es- Trump said Saturday. “You have successfully interfered in the Asked about North Korea on
carpet” for Russian President with Vietnam President Tran pecially as currently consti- Brennan, you have Clapper, and 2016 U.S. presidential election. Sunday, Mr. Trump said it was a
Vladimir Putin. Đai Quang, Mr. Trump be- tuted,” Mr. Trump said. “I be- you have [former Federal Bureau Mr. Trump has struggled to “possibility” that he could have
“The Russians do not harbor grudgingly acknowledged his lieve very much in our of Investigation Director James] put to rest questions about the a friendly relationship with Kim
good intentions toward the acceptance of the intelligence intelligence agencies.” Comey. Comey’s proven now to report—and Russian’s role in Jong Un. The two leaders have
United States, and there report on the election issued On Saturday, flying from Da be a liar, and he’s proven to be a the election. “As far as the engaged in a war of words, with
shouldn’t be any illusions or earlier this year. He declined, Nang, Vietnam, Mr. Trump told leaker, so you look at that. And hacking, I think it was Russia,” each disparaging the other’s
any ambiguity about that,” Mr. however, when asked to answer reporters that Mr. Putin was ir- you have President Putin very he said at the time. ”But I think looks and mental capacity.
Clapper said. “And our presi- with a yes or no about whether ritated by repeated questions strongly, vehemently says he we also get hacked by other —Natasha Khan
dent fosters that ambiguity.” he believed the report was true. about his country’s involvement had nothing to do with that.” countries and other people.” contributed to this article.
Both Mr. Brennan and Mr. Instead, he expressed confu- in the election, and he criticized Messrs. Brennan, Clapper Sunday on CNN, Mr. Brennan
Clapper served under President sion that there was any ques- the former heads of the U.S. in- and Comey were in charge of also said Mr. Trump was “na-  Andrew Browne: Smiles mask
Barack Obama. tion about his confidence in the telligence agencies that put to- their respective intelligence ive” to believe that Russia trade tensions........................... A8
Mr. Trump is in the midst of agencies and cast doubt on the gether the report. agencies when those agencies would be helpful toward U.S. in-  U.S.-Philippines talks set for
a 10-day swing through Asia. previous administration, which “I mean, give me a break— released a declassified report in terests. “It’s very clear that the warmer tone.............................. A9

White House Holds Back on Moore Foreign-Student Surge

BY LOUISE RADNOFSKY
AND NANCY A. YOUSSEF
Starts to Ease Off
BY MELISSA KORN student enrollments rose by
WASHINGTON—Top White 3.4%, to 1.08 million, a record
House officials said Sun- The surge in foreign student high but the smallest year-over-
day they didn’t have enough in- enrollment that has bolstered year gain since 2009.
formation to judge whether Re- diversity and finances at U.S. The data, released Mon-
publican Senate candidate Roy colleges for the past decade is day by the nonprofit Institute of
Moore should withdraw from starting to slow—and concern International Education, por-
his race over allegations that he that the Trump administration tends challenges for U.S.
pursued teenage girls, including is tightening its borders is only schools that have benefited
one 14-year-old, while he was in one factor in the turning tide. from the influx of international
his 30s. Saudi Arabia and Brazil, students. Many institu-
Mr. Moore, who is running which have been big players in tions have grown reliant on a
for a U.S. Senate seat from Ala- sending students to the U.S., steady stream of students from
WES FRAZER/GETTY IMAGES

bama, has denied sexual mis- recently pulled back on govern- other countries to counter tight
conduct. The claims against him ment scholarships. Meantime, state funding and high tuition
have split the GOP and thrown competition is heating up from discounts that are now the
into question the balance of shorter degree programs in Eu- norm for local students.
power in the Senate, where Re- rope and improving options “When you lose 100-some in-
publicans hold a narrow major- closer to home. ternational students and multi-
ity of 52. Nationwide, new-student en- ply that by tuition, that’s obvi-
Kellyanne Conway, a senior GOP Senate hopeful Roy Moore appeared Saturday at a Veterans Day event in Vestavia Hills, Ala. rollments by foreign students at ously a hit on the budget,” said
White House counselor, and U.S. colleges and universities Jim Baker, vice president for re-
Steven Mnuchin, the Treasury cusations have more credibility report in the Washington Post tha Raddatz about whether she fell 3.3% in fall 2016 from the search and economic develop-
secretary seeking a tax overhaul than the denial. I think it would just one month before Alabama believed the allegation first re- year before, the first decline in ment and international pro-
that could hinge on the size of be best if Roy would just step voters are set to hold the spe- ported in the Washington Post a decade. Overall international- grams at Missouri State
Republicans’ Senate majority, aside,” Mr. Toomey said on cial Senate election to choose from Leigh Corfman that Mr. University.
both said Sunday they con- NBC. “I think a write-in is between Mr. Moore—an evan- Moore sexually touched her That school counted 1,526 in-
demned the actions of which something we should certainly gelical conservative who is a when she was 14 years old. Thinning Out ternational students this fall,
Mr. Moore was accused but explore. I think Luther Strange hero of the religious right—and “I don’t know Leigh Corf- First-time enrollments by the lowest number in five years.
didn’t know enough to judge would be a strong candidate for Democratic candidate Doug man,” Ms. Conway said. international students at U.S. A survey of some 500 col-
the veracity of the claims. a write-in.” Jones, a former U.S. attorney. A family member of Ms. Cor- colleges fell in the 2016-17 academic leges and universities con-
“I only know what I read,” Prominent GOP senators in- Democratic Sen. Chris Van fman’s reached by phone by The year, the first decline in a decade. ducted in September and Octo-
Ms. Conway said on ABC. “I cluding Bill Cassidy of Louisi- Hollen of Maryland said Sunday Wall Street Journal after the ber by IIE and nine other
take this seriously…. I also want ana, Mike Lee of Utah and Steve on Fox that the decision on the Post article was published said, 300,000 students higher-education organizations
to make sure that we as a na- Daines of Montana withdrew accusations would ultimately “The story as we know it is found that international new-
tion are not always prosecuting their support for Mr. Moore fall to Alabama voters, but that completely accurate.” He said student numbers fell by 7% this
people through the press.” over the weekend. they had “a great alternative” he had heard the account from 200,000 fall, with the largest drops
Sen. Pat Toomey of Pennsyl- On Friday, the National Re- candidate in Mr. Jones. Ms. Corfman and added “this among less selective colleges
vania on Sunday joined a group publican Senatorial Committee A handful of Republicans happened, this is not fake and those in the Midwest.
of GOP senators calling on Mr. withdrew from a joint fundrais- have openly spoken in Mr. news.” “This has really served as a
Moore to drop out of a special ing committee with Mr. Moore, Moore’s defense, questioning Ms. Conway and Mr. 100,000 wake-up call” for colleges
election next month in what is a the Republican National Com- the motivation of his accusers, Mnuchin were echoing the to rethink their international
deep-red state. Mr. Moore de- mittee and the Alabama Repub- the accuracy of the Post report president, who said through recruiting strategies, said Allan
feated Sen. Luther Strange, who lican Party, according to a Fed- or, in some cases, saying that spokeswoman Sarah Huckabee 0 Goodman, president and CEO of
had been filling the seat va- eral Election Commission filing. the actions of which he is ac- Sanders that he believed that 2005 ’10 ’15 IIE. For example, he said, some
cated by Attorney General Jeff The RNC and the state party de- cused don’t disqualify him from Mr. Moore should step aside if Note: Dates are for academic years beginning
schools are focusing more on
Sessions, in a September runoff clined to comment on whether office. the allegations were true, but in the year shown. appealing to international stu-
to become the GOP candidate. they would follow the NRSC. On Sunday, Ms. Conway was that he didn’t know whether Source: Institute of International Education dents already in the U.S. for
“I have to say, I think the ac- The allegations surfaced in a pressed by ABC co-anchor Mar- that was the case. THE WALL STREET JOURNAL. high school.

TAXES duction of at least $24,000

while limiting or repealing de-
ductions. The House and Sen-
ate would repeal the deduction
Continued from Page One for state and local income and
actually pretty good,” said sales taxes; the House would
Lawrence Zelenak, a Duke Uni- retain a partial property-tax
versity law professor. “It gets deduction.
rid of several things which add Despite the larger standard
a lot of complexity for a lot of deduction, the repeal of the
ordinary taxpayers.” personal exemptions means the
The National Taxpayer Ad- amount of income that is tax
vocate, an internal IRS watch- free wouldn’t be close to dou-
dog, estimates tax filing costs bled. Instead, fewer people
about $195 billion a year and would itemize deductions be-
six billion hours in annual com- cause fewer would exceed the
pliance costs. standard deduction.
The plans’ biggest simplifi- That is a backdoor way of
cation affects itemized deduc- limiting tax breaks for mort-
tions. Republicans want to re- gage interest and charitable
peal the personal exemption, contributions, and it’s why
which would let taxpayers in many home builders, real-es-
2018 subtract $4,150 from tax- tate agents and charities op-
able income for them- pose the GOP plans.
selves, their spouses and each “The guy who’s getting a
of their dependents. salary and a W-2, his life’s go-
They would replace it with a ing to be a whole lot easier
nearly doubled standard de- when he goes to fill out his tax
return,” said Rep. Tom Rice (R.,
S.C.), a tax lawyer and member
of the House Ways and Means
Committee.
ber.
Still, the promise of post-
card-style filings was never
wholly realistic, because even
represent would rather have
their loan interest deduction, if
they have substantial student
debt, than being able to file on
would pay higher taxes in 2019
under the House plan than un-
der current law, according to
the Joint Committee on Taxa-
The House’s combination of behind simple filings are calcu- a postcard,” said Rep. Lloyd tion. By 2027, that rises
policies means 6% of house- lations, work sheets and defi- Doggett (D., Texas). to nearly 20%.
holds would itemize deductions, nitions that add complexity, The tax code is complicated The Senate plan retains the
down from about 30%. That time and work. in part because the U.S. deliv- medical-expense and student-
means less time tracking chari- For many households, sim- ers social and economic policy loan interest deductions. In
table contributions and other pler isn’t necessarily better. through taxes. Some complex- 2019, 9% of households would
A married couple with ity is designed to stop busi- pay more, according to JCT. In
$30,000 in deductible medical nesses and high-in- 2027, 12% would pay more.
expenses for nursing-home care come households from In other cases, Republican
The promise of generally fares worse under the cheating. And interest groups— plans add new complexity.
postcard-style filings House bill than today. The from colleges to financial-ser- They retain today’s tax brack-
House plan would repeal the vices firms—get lawmakers to ets for capital gains and divi-
was never wholly medical expense deduction, insert and protect their favor- dends while changing ordinary
realistic. pushing that family to the ite breaks. income brackets, so anyone
$24,400 standard deduction “Until our society gets more with investment income has
and taxing more of their in- simplified, you’re not really go- two different rate structures.
come. ing to have a way you mail in a They would add new rules for
expenses and is what’s behind The same is true for house- 10-line tax return,” said Mark pass-through businesses such
the postcard vow. holds taking the student loan Steber, chief tax officer at Jack- as partnerships and S corpora-
“Ninety four percent of the interest deduction, now avail- son Hewitt Tax Service Inc. tions. For top-bracket house-
people would not itemize based able to households that use the For some people, the status holds, the House creates a
on this new tax bill,” said Rep. standard deduction; it would quo is preferable, even within a “bubble rate” that claws back
Jim Renacci (R., Ohio), an ac- disappear in the House plan. $1.5 trillion tax cut over a de- the benefits of the bottom
countant and committee mem- “Many of the people that I cade. About 8% of households bracket.
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A6 | Monday, November 13, 2017
Hariri Says He Will Return to Lebanon
Prime minister says
he can move freely,
denies Saudi officials
pressed him to resign
Lebanese Prime Minister
Saad Hariri said he would re-
turn to Beirut within days
from his de-facto exile in Ri-
yadh, after his sudden resigna-
tion more than a week ago
thrust Lebanon back to the
forefront of a regional strug-
gle between Saudi Arabia and
Iran.
By Nazih Osseiran in
Beirut and Margherita
Stancati in Riyadh
Mr. Hariri, who leads Leba-
non’s main Sunni Muslim po-
litical bloc, has remained out-
side the country since he quit
his job from the Saudi capital
on Nov. 4, citing what he
called the destructive role of
Iran and its Lebanese proxy
Hezbollah in the Middle East
and saying he feared for his
life.
In an emotional interview
from Riyadh aired live on his
family’s television channel on
Sunday, Future TV, Mr. Hariri
sought to dispel rumors that
the Saudi government—his
chief foreign patron—had
pressured him into resigning
and restricted his movements.
“I wrote the resignation let-
ter because I wanted to create
a positive shock to show the
severity of the situation,” Mr.
Hariri said in his first public
comments since he stepped
down. “I can leave the king-
dom at any moment, but I am
reviewing security arrange-
ments to make sure that I can
return safely to a safe Leba-
non.”
He said he plans to go back
to Lebanon in “two or three
In Iraq, a New Cycle of Retribution Poland Condemns
BY ISABEL COLES
AND ALI NABHAN
ZUMAR, Iraq—The victors
in the latest reversal of for-
tunes in this part of northern
Iraq have wasted no time eras-
ing the legacy of three years
of Kurdish rule.
Since routing the Kurds in
October, Iraqi forces have
scrubbed out their sun-embla-
zoned flag and replaced pictures
commemorating Kurdish Pesh-
merga fighters killed in the war
against Islamic State with por-
traits of their own “martyrs.”
A mural depicting the fa-
ther of the Kurdish nationalist
struggle, Mala Mustafa Bar-
zani, has been defaced.
Scrawled over it are the
words: “Long live Iraq!”
The shift in power has fa-
vored local Arabs over Kurds
here, setting off a new round
of score-settling that under-
mines hopes for stability in
the country just as it triumphs
over Islamic State.
“Arab politicians claim the
Kurds Kurdicized the area
[and] Kurdish politicians claim
the Arabs Arabized the area,”
said the head of Zumar district,
Ahmed Jaafar. “Things are not
stable at all—not only in Zumar
but all over Iraq. We are wor-
ried about the coming stage.”
Kurdish fighters routed Is-
lamic State from this oil-rich
district of 90,000 people in
2014. But for much of the
area’s Arab population, the
real liberation came when
Iraqi forces pushed Kurdish
Shaken Region
A powerful earthquake struck along the Iran-Iraq border on Sunday.
Intensity of Sunday’s quake
Light Moderate
Erbil
Mosul
T ig ris
River Kirkuk
Halabja
IRAQ
Tikrit
Baghdad
Euphrates
River
Source: U.S. Geological Survey
Customers at a Beirut coffee shop watched a television interview with Lebanon’s Prime Minister Saad Hariri on Sunday.
days” to formally tender his
resignation.
Mr. Hariri’s departure has
triggered a political crisis in
Lebanon that threatens the
country’s delicate balance
among the predominantly
Christian, Sunni Muslim and
Shiite Muslim populations.
Lebanon’s Christian presi-
dent, Michel Aoun, an ally of
Shiite Hezbollah, has accused
Saudi Arabia of holding Mr.
Hariri against his will, an alle-
gation he reiterated on Sunday
ahead of the televised inter-
view.
"Hariri’s freedom of move-
ment is being limited and
there are conditions imposed
on his stay [in Saudi] and even
Iraqi pro-government forces are shown in Zumar in October.
fighters out a few weeks ago.
The offensive came just as
Iraqi forces, who were allied
with the Kurds in the war
against Islamic State, drove
the militants out of their last
strongholds in the country.
As their common enemy
nears defeat, the factions that
came together against Islamic
State are once again prioritiz-
ing their own agendas.
The shift came soon after
the Kurds moved to break
away from the rest of the
country with a Sept. 25 refer-
endum on independence.
In a startling turn, Iraqi
Prime Minister Haider al-
Abadi mobilized troops against
his former Kurdish allies.
Within days, he reasserted
Baghdad’s authority across
disputed, ethnically mixed ter-
Strong Very strong
50 miles
50 km
IRAN
Sanandaj
Epicenter Hamedan
Kermanshah
THE WALL STREET JOURNAL.
WORLD NEWS
on him contacting his family,”
Mr. Aoun said on Sunday af-
ternoon. As a result, the “posi-
tions and statements” of Mr.
Hariri “cannot be relied on or
considered as statements com-
ing willingly from the prime
minister.”
On Friday, Hezbollah Secre-
tary-General Hassan Nasrallah
accused Riyadh of holding Mr.
Hariri under house arrest. "It
is obvious that Saudi Arabia
has declared war on Lebanon
and Hezbollah,” he said dur-
ing a televised statement on
Friday.
Spokespersons for the
Saudi government didn’t im-
mediately respond to a re-
quest for comment. The coun-
ARI JALAL/REUTERS
ritories the Kurds had seized
outside their semiautonomous
region in the north.
With that land, stretching
from Iran in the east to Syria
in the west, the Kurds had en-
larged the territory under
their control by about 40%.
Baghdad continues to de-
mand the Kurds surrender the
rest of the territory they con-
trol outside the formal bound-
ary of their region, as well as
international border crossings
they hold. The central govern-
ment has massed troops near
Zumar to pressure Kurds.
The Kurds called on Nov. 6
for dialogue to ease tensions
with the central government.
The erasing of symbols re-
minded Kurds of a dark chapter
in the past, when they were dis-
placed en masse from those
Quake Kills Scores
Near Iran-Iraq Border
Associated Press
TEHRAN, Iran—A powerful
earthquake shook the Iran-Iraq
border late Sunday, killing
more than 140 people and in-
juring 860 in Iran alone, state
media there reported.
The Baghdad government
didn’t immediately disclose
damage or casualties in Iraq.
The magnitude-7.3 quake
was centered 19 miles outside
the eastern Iraqi city of Hal-
abja, according to the most re-
cent measurements from the
U.S. Geological Survey.
Iranian social media and
news agencies showed images
and videos of people fleeing
their homes in the western Ira-
try’s acting ambassador to
Lebanon on Saturday said Mr.
Hariri was in Saudi Arabia by
his own will and was free to
move.
Lebanon finds itself at the
heart of a rivalry between
Saudi Arabia and Iran for re-
gional dominance. For years,
wars in Syria and elsewhere,
and the territorial expansion
of Islamic State, meant that
Lebanon was low on their list
of priorities. Now, as those
conflicts are drawing to a
close, the country is gaining
renewed focus from Riyadh
and Tehran.
The troubles between Leba-
non and Saudi Arabia also
have aroused the concern of
same areas by former dictator
Saddam Hussein as he sought
to consolidate government con-
trol over oil resources and ara-
ble land in the north through a
campaign of “Arabization.”
After driving Islamic State
out of some of those areas, the
Kurds destroyed Arab homes,
banishing many they accused
of supporting the militants.
Arabs banished from Zumar
under Kurdish rule are now re-
turning to the area, and pitching
tents among the ruins of their
villages. Some human-rights
groups said the villages were at
least partly destroyed by Kurd-
ish forces in an effort to change
demographics in their favor.
Since Iraqi forces moved in
on Oct. 13, more than 180,000
people, mainly Kurds, have
fled the disputed areas, ac-
cording to the United Nations.
Some Kurds who fled said
they fear retribution by Iraqi
forces and local residents from
other ethnic groups, primarily
Arabs, who resented Kurdish
dominance and have been
newly empowered by the res-
toration of federal authority.
In some areas, Kurdish prop-
erty has been ransacked and
torched. In Zumar district, the
chief of police and head of in-
telligence—both Kurds—have
been replaced with Arabs.
“We have been liberated
from the Peshmerga,” said a
60-year-old resident, who re-
turned to the Zumar area less
than three weeks ago to find
his house in the Arab village
of Barzan destroyed.
nian province of Kermanshah.
The state-run IRNA news
agency reported the increase
in casualties early Monday and
said rescue work was continu-
ing overnight and would accel-
erate during the daytime.
The semiofficial ILNA news
agency said at least 14 prov-
inces in Iran had been affected
by the earthquake.
Officials said schools in
Kermanshah and Ilam prov-
inces would be closed on Mon-
day because of the tremor.
Iranian state TV also said
Iraqi officials reported at least
six people dead inside Iraq.
Iran sits on many major
fault lines and is prone to
near-daily quakes.
* **** THE WALL STREET JOURNAL.
bollah to cease its involvement
in conflicts like the war in
Syria, where it is fighting
along with Iran on behalf of
Syrian President Bashar al-
Assad. Saudi Arabia is a sup-
porter of the Syrian opposi-
tion fighting against him.
Mr. Hariri’s resignation an-
nouncement almost immedi-
ately sparked rumors that
Saudi Arabia was restricting
his movements, which per-
sisted even as he met foreign
diplomats in Riyadh and trav-
eled to the United Arab Emir-
ates on a day trip.
According to an account de-
scribed by people familiar
ANWAR AMRO/AGENCE FRANCE-PRESSE/GETTY IMAGES
with the matter, Saudi offi-
cials, frustrated that Mr. Hariri
had been unable to contain the
influence of Hezbollah, sum-
moned him to Riyadh on Nov.
3.
The Saudis pressured him
into resigning after he de-
clined to embrace a more
hard-line stand against the
militant group, those people
said.
“He was ordered to resign.
He was ordered to stay,” said a
person briefed on the events
by a member of the Hariri
the U.S., which considers both family.
to be key partners in the re- Saudi Arabia is now seeking
gion. “The United States cau- to elevate as head of the Sunni
tions against any party, within bloc Mr. Hariri’s older brother,
or outside Lebanon, using Leb- Bahaa Hariri, who they hope
anon as a venue for proxy con- will be more aggressive in
flicts,” Secretary of State Rex countering Hezbollah and Iran,
Tillerson said on Friday, a the person said.
clear reference to Riyadh and Saudi officials asked mem-
Tehran, both of which have bers of the Hariri family to
seen the country as a battle- come to Riyadh in order to
ground for influence. persuade the family members
Mr. Hariri on Sunday ruled to pledge allegiance to Bahaa
out the possibility of an armed Hariri, a request they are re-
conflict in Lebanon: “We will sisting.
not allow a regional war in “They are lost. They can’t
Lebanon for the benefit of re- say no and they don’t want to
gional calculations.” say yes,” the person said. “But
He said he wants Lebanon they don’t have a choice.”
to stay neutral in regional ri- —Summer Said in Dubai
valries, and appealed to Hez- contributed to this article.
Nationalist March
BY DREW HINSHAW seeks an ethnically pure Po-
land, and has focused rhetoric
Polish government leaders against Jews and Muslims,
condemned two self-described both groups representing less
radical nationalist groups than 1% of the country’s popu-
seeking an ethnically and reli- lation.
giously pure country that or- The National Radical Camp
ganized an Independence Day has said it wants an authori-
event attracting tens of thou- tarian, Catholic Poland, and its
sands of people. members have burned Jews in
“We do not approve of sup- effigy.
port in the public sphere for The size of the march
an ethnic national community, raised questions in the Polish
we support the idea of a na- press over the degree to which
tion rooted in culture,” Piotr the marchers subscribed to
Glinski, the country’s deputy the two groups’ beliefs, or
prime minister said on Sun- whether they were simply
day, a day after the country’s willing to overlook them as
largest national independence they joined the biggest event
celebration attracted far-right in the capita on Saturday.
movements from at least six Although the two groups
other European states. organized the march, some
The National Radical Camp government leaders described
and the All Polish Youth—two them as a fringe within the
nativist political movements crowd. Interior Minister Mari-
both named after Polish anti- usz Blaszczak said on Sunday
Semitic fascist leagues from he didn’t see any racist signs
the 1920s and 1930s—orga- or symbols at the march.
nized Saturday’s march to The largely young crowd on
mark the 99th anniversary of Saturday shot off Roman can-
the country’s independence. dles and many chanted “fa-
Many of the attendees—esti- therland,” behind banners
mated at 60,000 by the po- such as “Clean Blood” or “Eu-
lice—said they were not mem- rope Will Be White or De-
bers of those organizations, serted.” Some marchers said
but saw nothing wrong with they had flown in from Hun-
celebrating their country’s gary, Slovakia and Spain.
1918 statehood marching “There are, of course, na-
alongside them. tionalists and fascists at this
The march underscores how march,” said Mateusz, a 27-
a growing section of Polish year-old wrapped in a Polish
youth are turning rightward. flag, “I’m fine with it. I’m just
The National Radical Camp happy to be here.”
PAWEL SUPERNAK/EPA/SHUTTERSTOCK
Marchers marked Polish independence in Warsaw on Saturday.
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THE WALL STREET JOURNAL. Monday, November 13, 2017 | A7

Export Food,
Not Jobs

Congratulations to the Trump administration and

Agriculture Secretary Sonny Perdue (pictured left,
at last month’s second annual Global Food Forum)
for increasing America’s food exports by 9 percent in
the past 12 months after recent years of decline. This
growth includes beef by 25% and dairy by 16%.

We salute the Trump administration’s constancy of

focus on exports, deregulation and other key drivers of
success for farmers and food processors of America.

Anthony Pratt
Executive Chairman, Pratt Industries

Pratt Industries is one of the largest corrugated box manufacturers in the United States.
Our boxes save money and save the environment.

www.prattindustries.com
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A8 | Monday, November 13, 2017 THE WALL STREET JOURNAL.

WORLD NEWS

Smiles Mask Trade Tensions China Massages

Its Global Message
BY TE-PING CHEN
BEIJING—Xi Jinping wants
the media to tell China’s sto-
ries better. These days, he is
CHINA’S WORLD increasingly finding willing
By Andrew Browne partners abroad.
The Chinese leader has ex-
horted state media to do more
HANOI—On its face, Don- to “enable the world to see a
ald Trump’s deference to Xi multidimensional and colorful
Jinping at their summit was China,” present his nation as a
a victory for China, although builder of global peace and
not nearly the surrendering help strengthen China’s influ-
of U.S. leadership in Asia to ence abroad.
IVANOV ARTYOM/TASS/ZUMA PRESS
Mr. Xi and his policies.
The documentary mentions
some of China’s challenges,
such as pollution. But there is
no mention of more controver-
sial aspects of Mr. Xi’s tenure,
such as his crackdowns on
speech and dissidents or his
moves toward one-man rule.
“It’s not our place to sort of
comment on or provide the
good and the bad. We don’t
look at it that way,” Discovery
representative Karun Arya
said. “We’re in the business of

the Chinese strongman that China has for years placed infotainment.”
some critics allege. paid English-language state- Many of these projects re-
Mr. Xi’s China, Mr. Trump media supplements in foreign ceive support from state arms
said, paying fulsome tribute newspapers, including The linked to government propa-
to the omnip- Wall Street Journal. ganda departments. Such part-
otence of the Under Mr. Xi, Beijing, which nerships give China more say
newly often calls Western depictions in how its story is told—with
crowned su- of its society unfair, has also the imprimatur of a respected
preme leader stepped up support for co-pro- media outlet or producer.
standing next Presidents Xi Jinping, left, and Donald Trump smiled during a meeting in Beijing on Thursday. ductions with foreign part- Discovery said the “Time of
to him, could ners, including documentary Xi” project was conceived by
fix the North Korean nuclear and aluminum dumping. The takeaways and the White tive: “The world has many tie-ups spotlighting the coun- its team and received help
crisis “easily and quickly,” action reflects an acknowl- House appears to have used places, many dreams and try’s culture, technological ad- with research and access from
On Chinese trade abuses, edgment that Mr. Xi has no the summit to signal it is no many roads,” he said to scat- vancements and infrastructure China Intercontinental Com-
he appeared to absolve Mr. intention of abandoning longer playing the old game tered applause. His America projects. munication Center, a company
Xi of all responsibility, pro- predatory industrial policies of pretend. Is this why, after First stridency, though—“but One such feature is “China: belonging to the Communist
vocatively suggesting there to bring China, in his words, Mr. Trump had left Beijing, in all of the world there’s no Time of Xi,” a documentary Party Propaganda Department,
is honor in the way Chinese “closer to the center” of the his hosts offered improved place like home”—was re- produced by Discovery Chan- whose role isn’t listed in the
leaders game the global world, and that conventional market access for U.S. secu- ceived in silence. nel’s Asia arm that was first credits.
trading system to win advan- counters to Chinese abuses, rities firms and banks? There’s his problem: The broadcast in China in Octo- CICC, which bought the dis-
tage for their people. “I give like World Trade Organiza- White House aides suggest marketing of nationalism— ber—during a Communist tribution rights for China and
China great credit,” he said. tion complaints, don’t work. this concession was granted, each country for itself—cre- Party congress that gave the other Asia-Pacific regions out-
Look beyond the flattery, All this suggests that a not demanded. ates fissures in Asia. leader a level of authority side Discovery’s footprint,
however, and a harder-edged largely vacuous meeting in In this more nuanced read- Whether Mr. Trump is con- comparable to Chairman Mao. didn’t respond to a request for
strategy comes into focus. Beijing may go down in his- ing from Washington’s per- fronting North Korea or Chi- Interspersed in the produc- comment on its foreign pro-
tory as the prelude to a face- spective, Mr. Trump’s role nese territorial assertive- tion are admiring words for duction partnerships.

A
s Mr. Trump lavished off on trade and other conten- was to enhance a rapport with ness, he needs an Asian
praise on the Chinese tious issues that Mr. Trump Mr. Xi that will help anchor coalition behind him, which
president, three U.S. repeatedly threatened during the relationship in advance of means promoting common
aircraft-carrier strike groups his campaign but has conspic- expected turbulence ahead. values in a region of traders.
prowled the Western Pacific. uously failed to bring on. Mr. Xi understands this, at

GREG BAKER/AGENCE FRANCE-PRESSE/GETTY IMAGES

They are a reminder of the Indeed, empty summitry here was nothing sub- least rhetorically.
military options the Penta- may have been part of the tle, though, about Mr. Mr. Xi’s attempts to pose
gon is weighing against White House game plan. Trump’s address to as the savior of open mar-
Pyongyang, knowing that Both sides normally strain Asian leaders gathered in the kets and globalization draw
while China could do more for agreements to show Vietnamese coastal resort of as much skepticism today as
to pressure Kim Jong Un to progress toward all-around Da Nang. In front of a group when he first pitched himself
slow his nuclear buildup, Mr. engagement. This time was dedicated to multilateral in that role at Davos this
Xi’s leverage is limited. different. Nobody was fooled trade, he thundered his insis- year. But what he offers is
Meanwhile, back in Wash- by the $250 billion in com- tence on one-on-one deals. inclusion, not retreat.
ington lower-level aides are mercial deals signed. Borrowing a line from Dor- Having forged the region
dusting off a rarely used Focus exclusively on his othy in “The Wizard of Oz,” in its own image—a free-
Cold War-era trade weapon gushing personal diplomacy Mr. Trump took a dig at the trading and substantially
that invokes national-secu- and the view might be that ethno-nationalism that im- democratic dynamo—the U.S.
rity considerations to push Mr. Trump was played like a bues Mr. Xi’s dream, as well now risks bequeathing the
back against Chinese steel fiddle. Dwell on the modest as his “Belt and Road” initia- fruits to a rising China. A poster of Xi Jinping looks down at Beijing pedestrians.

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THE WALL STREET JOURNAL. * * * * Monday, November 13, 2017 | A9

WORLD NEWS

U.S.-Philippine Talks Set for Warmer Tone

Trump-Duterte pleased to have finally met”
very briefly at the Asia-Pacific
meeting follows Economic Cooperation summit
American support for in Vietnam. Mr. Duterte said he
and the American leader
fight against militants “share so many ideas.”
The U.S. ruled the Philip-
BY JAKE MAXWELL WATTS pines between 1898 and 1946
and the country was home to
MANILA, Philippines—Pres- some of the largest overseas
ident Rodrigo Duterte meets U.S. military bases before they
Monday with President Donald were closed amid rising oppo-
Trump, with the Philippine sition in the early 1990s. Many
leader’s longstanding animos- Filipino elites are educated in
ity toward the U.S. tempered the U.S., and large numbers
separation from the U.S.—
made during a visit last year
to China, increasingly Amer-
ica’s strategic competitor in
the region—hasn’t panned out
in policy.
Still, Mr. Duterte also has
sought closer ties with China
and Russia in what he calls a
new “independent foreign pol-
icy.”
There are still issues on
which the Philippines and the
U.S. don’t agree, such as the
violent crackdown on drug use

by Mr. Trump’s implicit sup-
port of his war on drugs and
by American help in crushing
Islamic State-backed fighters
who occupied a southern city.
Mr. Duterte lobbed repeated
verbal attacks at the U.S. when
he took office in June 2016,
swiftly clashing with then-
President Barack Obama on
human-rights issues. Relations
have improved under Mr.
Trump, who will be meeting
Mr. Duterte at a summit of
Asia-Pacific leaders under the
umbrella of the Association of
Southeast Asian Nations.
Mr. Duterte, the summit
host this year, greeted Mr.
Philippine President Rodrigo Duterte spoke at the Asean dinner in Manila on Sunday.
Trump with a handshake at a
gala dinner Sunday for summit
participants in Manila. When
they meet on Monday, “there
will be a lot of discussion
about renewal of the U.S.-Phil-
ippines alliance and re-ener-
gizing that alliance,” a U.S. ad-
ministration official said in a
briefing.
The relationship was helped
by a state-of-the-art U.S.
drone and other aircraft that
provided surveillance for the
Philippine armed forces as
they battled for five months to
ATHIT PERAWONGMETHA/REUTERS
have family in both countries.
The meeting is a chance for
two men viewed at home as
antiestablishment populists to
find common ground, analysts
say. The Philippine leader “is
street smart,” said Clarita Car-
los, professor of political sci-
ence at the University of the
Philippines. “Trump and Du-
terte are both straight talk-
retake the city of Marawi from ers,” she said. “They should
hundreds of militants linked to get along well.”
Islamic State. The Philippine While Mr. Duterte has been
military called the U.S. sup- open about his ambivalence
port a game-changer. toward the U.S. relationship,
A spokesman for Mr. Du- which he says has been unfair
terte said that he and Mr. to the Philippines, his declara-
Trump “were genuinely tion that he would establish a
by Mr. Duterte that activists
say has led to the deaths of
more than 13,000 people, in-
cluding many allegedly exe-
cuted by police. Mr. Duterte
denies that police have been
involved in extrajudicial kill-
ings and his government dis-
putes the body count.
U.S. officials say Mr. Trump,
who hasn’t openly criticized
the drug war, intends to bring
it up and discuss “ways in
which that war could be pros-
ecuted that conform with Phil-
ippine law and international
norms for human rights.”
Another thorny issue is se-
curity in the South China Sea.

Allies Drill With American Carriers

BY ALASTAIR GALE three-carrier operation in the yang, but said the drills would that might target the U.S. and

U.S. NAVY/AGENCE FRANCE-PRESSE/GETTY IMAGES

ABOARD THE USS RONALD
REAGAN—Three U.S. aircraft
carriers with around 200 jet
fighters in total sailed in close
formation with several other
warships in the Sea of Japan
on Sunday, the largest display
of U.S. naval firepower in the
region for a decade as nearby
North Korea trades war threats
with Washington.
In exercises due to run
through Tuesday, the U.S.
forces, joined by Japanese and
South Korean military vessels,
are training for combined oper-
ations that would enable them
to stage indefinite large-scale
round-the-clock offensives, of-
ficials on board lead carrier the
USS Ronald Reagan said.
The combined drill, the first
SIMON DAWSON/REUTERS
western Pacific region since
2007, has been highlighted by
President Donald Trump as a
warning to North Korea as that
country continues to ramp up
its nuclear program. In com-
ments last week in Seoul, Mr.
Trump said the carriers were
among major military assets
“we hope to God we never have
to use.”
In the latest exchange,
North Korea’s state media over
the weekend called Mr. Trump
a “warmonger,” while the pres-
ident on Twitter criticized
Pyongyang’s personal insults
against him.
Officials coordinating the
exercises a few hundred miles
southeast of North Korea’s
coast were careful not to single
out the standoff with Pyong-
enable them to prepare fully
for conflict.
“The message is that we are
ready to defend our national
interest and our allies,” said
Rear Adm. Marc Dalton, com-
mander of the combined exer-
cises.
Overwhelming air power
would be central to winning
any conflict with North Korea
quickly, defense analysts say.
Most jet fighters on the three
U.S. carriers are F-18s, which
could be launched and reach
North Korea within minutes of
such a command being given.
In a war with North Korea,
initial strikes would likely be
made to destroy ground-to-air
missile units which could
threaten U.S. bombers, as well
as ballistic-missile launch sites
its allies.
“It is important for the U.S.
to have the ability to conduct
multiple coordinated strikes si-
multaneously with as many as-
sets it can muster,” said Ridz-
wan Rahmat, senior defense
and security analyst at Jane’s.
The mood on the ship ap-
peared relaxed on Saturday
evening, pizza-and-chicken-
wings night for the kitchens,
which produce around 18,000
meals a day for the almost The three U.S. aircraft carriers, shown in an image from the Navy.
6,000 crew, pilots and others
on board. nelly, who took part in the last erations continuously for about
After dinner, some crew three-carrier exercise in the a month, an additional carrier
took part in touch rugby train- western Pacific, near Guam, removes the limit.
ing. Others watched screenings said the latest drills were in Asked if the latest exercise
of horror movie “Child’s Play” the Sea of Japan because of the sends a message to countries
or Vietnam War movie “Apoca- importance of the area. While that challenge the U.S., Capt.
lypse Now”. two carriers and their support Donnelly said: “I would expect
Capt. Michael “Buzz” Don- groups could sustain joint op- it certainly has to.”

Softbank has been trying to gain a 14% stake in Uber, according to people familiar with the matter.

UBER the Japanese investor could

Continued from Page One
one staying in is focused on
the possibilities of the future
and everyone mired in the
past and present can move
on.”
Directors have used the
proposed SoftBank deal to
push through a sweeping set
of board reforms sought by
investors. The reforms only
kick in if the investment deal
is consummated.
“We believe this agreement
is a strong vote of confidence
in Uber’s long-term poten-
tial,” an Uber spokesman said
in an emailed statement.
“Upon closing, it will help fuel
our investments in technology
and our continued expansion
at home and abroad, while
strengthening our corporate
governance.”
SoftBank, leading a consor-
tium of investors, has been
trying gain at least a 14%
stake in Uber, according to
the people familiar. A two-
pronged investment could to-
tal $10 billion, with SoftBank
directly contributing at least
$1 billion, buying shares that
reflect the company’s valua-
tion at $68 billion, and buying
the rest of the stake from in-
vestors at a lower price, the
people said.
Details of the tender offer
are still to come—pricing re-
mains an issue—and could fail
to entice enough investors to
sell their stakes. If SoftBank
doesn’t garner at least 14%,
scuttle the deal, people famil-
iar with the matter have said.
Benchmark agreed to put a
hold on its lawsuit against Mr.
Kalanick, while the former
CEO will allow directors to
vote on any future appointees
he makes to the board for the
three seats he oversees, these
people said.
The investor, with a board
seat and a stake valued at
more than $8 billion, had
sued Mr. Kalanick to turn con-
trol of his seats back to the
board, a move that divided di-
rectors. Mr. Kalanick was
granted control of three board
seats as part of a $3.5 billion
investment from a Saudi
wealth fund in 2016.
Once the deal is complete,
Benchmark will drop its suit,
said the people familiar with
the matter.
For SoftBank, the deal
would give it a stake in all of
the world’s largest ride-hail-
ing firms. It also already has
directors on the boards of ANI
Technologies Pvt.’s Ola and
GrabTaxi Holdings Pte., which
compete with Uber directly in
India, and Singapore and
Southeast Asia, respectively.
SoftBank still faces hurdles
in its goal of taking a com-
manding stake in Uber. Bench-
mark, which controls about
13% of Uber, privately has wa-
vered on whether it will sell
based on the valuation of the
tender offer, and Mr. Kalanick
has indicated he plans to re-
tain all of his roughly 10%
stake, according to the peo-
ple.
Benchmark has said it be-
lieves Uber could be valued at
$100 billion, though talks on
the tender offer have centered
on a valuation of around $50
billion, according to the peo-
ple.
Upon completion of a deal,
a set of governance reforms
would kick in, including elimi-
nating the outsize voting
power of early investors and
adding six seats to Uber’s 11-
person board, two slated for
SoftBank, the people said.
The voting provision effec-
tively would limit Mr. Kalan-
ick’s power by creating equal
voting power among share-
holders. Still, with oversight
of three board seats, he would
remain an influential force at
the company he co-founded
eight years ago, and he re-
mains in close contact with
Mr. Khosrowshahi and other
executives.
Mr. Kalanick in September
unilaterally filled two board
seats, which surprised fellow
directors and the new CEO.
He named two well-known ex-
ecutives in former Xerox
Corp. CEO Ursula Burns and
former CIT Group Inc. CEO
John Thain.
Uber’s board has set a
deadline to hold an initial
public offering sometime in
2019. That gives the company
and its new CEO some time to
repair its damaged reputation,
fill a number of top executive
roles, resolve a series of
prominent lawsuits and im-
prove financial losses that to-
taled more than $3 billion last
year.
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
A10 | Monday, November 13, 2017
CHINA
Continued from Page One
is stunning,” says Carolyn Bar-
tholomew, chairwoman of the
U.S.-China Economic and Secu-
rity Review Commission, which
was created by Congress to
monitor the national-security
implications of trade with
China. “We shouldn’t presume
that there are benign intentions
in the use of information-gath-
ering technology that is funded
directly or indirectly by the
Chinese government.”
Some security vendors in the
U.S. refuse to carry Hikvision
cameras or place restrictions
on their purchase, concerned
they could be used by Beijing to
spy on Americans. The General
Services Administration, which
oversees $66 billion of procure-
ment for the U.S. government,
has removed Hikvision from a
list of automatically approved
suppliers. In May, the Depart-
ment of Homeland Security is-
sued a cybersecurity warning
saying some of Hikvision’s cam-
eras contained a loophole mak-
ing them easily exploitable by
hackers. The department as-
signed its worst security rating
to that vulnerability.
The concerns about Hikvi-
sion are reminiscent of the con-
troversy surrounding Chinese
technology giant Huawei Tech-
nologies Corp., whose telecom
gear was effectively banned in
the U.S. after a 2012 congres-
sional report raised fearsits
networking equipment could be
used to spy on Americans. The
company has repeatedly dis-
missed such concerns.
Hikvision says its equipment
is safe and secure, that it fol-
lows the law wherever it does
business and that it worked
with Homeland Security to
patch the flaws the agency
cited. It says it “cannot in any
way access and control the con-
tent of the video cameras.” It
says the vast majority of its
products are sold through
third-party vendors, meaning it
often doesn’t even know where
they wind up.
“Hikvision is a business,”
said Chief Executive Officer Hu
Yangzhong. “It would be impos-
sible for us to add a backdoor
to our cameras, as that would
damage our business.”
Vulnerabilities in surveil-
lance cameras have become
more of a concern as internet-
connected devices become
more prevalent. Cameras can be
a weak link in an organization’s
information-technology net-
work, potentially opening
“backdoors”—ways to gain ac-
cess by bypassing security
mechanisms—for hackers, in-
cluding state-backed ones.
Last year, hackers took con-
trol of hundreds of thousands
of cameras, including many
made by a Chinese rival of
Hikvision, to launch a huge “de-
nial of service” attack that se-
curity experts said made sites
run by Amazon.com Inc., PayPal
Inc. and Twitter Inc. unavail-
able for hours.
Hikvision grew out of a gov-
ernment laboratory started a
half-century ago. Its largest
shareholder is China Electron-
ics Technology Group Corp., or
CETC, a state-owned defense
and military electronics manu-
facturer. Its biggest individual
shareholder is Gong Hongjia, a
Hong Kong billionaire and uni-
versity classmate of top Hikvi-
sion executives. Some execu-
tives are Communist Party
members also employed by
subsidiaries of CETC, according
to securities filings in China.
Mr. Gong said in an inter-
view that he provided capital to
ADS
Continued from Page One
are the best way. There is no
chance of mischief.”
The newspaper ads use no
names or photos and convey
limited personal information.
Once respondents reveal they
are strong candidates, more de-
tails are shared. A majority of
marriages in India are still ar-
ranged, often with parents
meeting before the potential
bride and groom get a chance
to see each other.
“The newspaper is a more
sincere way of groom hunting
because it’s mostly read by el-
derly, senior and serious citi-
zens,” said K.P. Chakraborthy, a
retiree who has spent hundreds
of dollars on ads to find a new
match for his daughter, who is
divorced. “Marriage is an alli-
ance between two families, and
it is only through newspapers
that you come across decent
families.”
The short postings list the
IN DEPTH
Surveillance gear on display, above, at Hikvision’s Hangzhou office. Heat-mapping technology, below, can be used for crowd counting.
help found Hikvision in 2001, in
an arrangement that gave the
government-backed lab a 51%
stake. Although the size of that
stake has since declined, the
government only began to more
actively aid the company in the
past few years.
CETC didn’t respond to a re-
quest for comment.
Contracts from Chinese gov-
ernment agencies propelled the
company’s rise. It helped with
security at the 2008 Beijing
Olympics. In 2011, the company
said the value of contracts for
its “safe city” camera project in
Chongqing, a large city in
China’s southwest, reached $1.2
billion. Its cameras are now
ubiquitous on the city’s streets. era-equipped drones and cam-
China’s President Xi Jinping, eras programmed to alert
who has made high-tech secu- authorities to large gatherings.
rity a priority, visited the firm’s The company’s consumer
headquarters in 2015. Since camera line, called “EZVIZ,” can
that year, Hikvision has re- sync with a smartphone app.
ceived major loans from two of One softball-sized device can
China’s three policy banks, detect noises—a dog barking
which finance state develop- loudly or the sound of a door
ment goals. opening—and automatically di-
Zheng Yibo, a Hikvision vice rect its lens at the source of the
president, says CETC has no disturbance, sending an alert to
role in Hikvision’s day-to-day the phone.
operations. Global sales of surveillance
Hikvision’s head of research, equipment has increased 55% in
Pu Shiliang, holds a leadership the five years through 2016, ac-
position at a Hangzhou labora- cording to consulting firm IHS-
tory run by the Ministry of Markit. By pricing cameras be-
Public Security, China’s police low those made by Western
force. The lab explores ways au- competitors, Hikvision has be-
thorities can leverage data come the top seller of surveil-
gathered by the company’s lance equipment in Europe and
cameras and other sources to No. 2 in the U.S., according to
improve policing, according to IHS-Markit and other industry
the lab’s website. analysts. Its cameras frequently
China has been rolling out are sold without the Hikvision
new technologies to monitor its name and are rebranded by U.S.
people in ways that would un- distributors—a frequent prac-
settle many in the U.S. and the tice in the industry.
West. Unfettered by privacy This year, Hikvision opened
concerns or public debate, Bei- research-and-development of-
jing’s leaders have introduced fices in Silicon Valley and Mon-
facial-recognition technology treal. It plans to employ 350
people in North America by
year’s end and 800 by 2022,
Contracts from the company says.
Fort Leonard Wood, an Army
Chinese government base in Missouri’s Ozarks, uses
Hikvision cameras in its secu-
agencies propelled the rity system, according to the
company’s rise. Chinese company and NexGen
Integration, a U.S. company
that handled the installations.
The base offers basic combat
and other surveillance mea- training and includes a school
sures in a vast experiment in for chemical, biological and nu-
social engineering. Their goal is clear-defense drills.
to influence behavior and iden- Chris Nickelson, NexGen’s
tify lawbreakers. owner, says none of his custom-
At Hikvision’s Hangzhou ers have raised any issues
showroom, walls are lined with about Hikvision gear. The army
monitors and video cameras base referred questions to the
that employ artificial intelli- U.S. Army’s installation man-
gence to recognize objects and agement command public af-
sounds from afar and to pro- fairs office, which said it
duce visible images despite pol- doesn’t discuss equipment or
lution or darkness. Hikvision’s capabilities, but added that
“Darkfighter” thermal camera “any equipment or software
enables it to record under ul- that goes on a military network
tralow light conditions, the is thoroughly tested for secu-
company says. Its “Blazer Pro” rity vulnerabilities.”
server, it says, allows license- At the U.S. Embassy in Ka-
plate recognition. It offers cam- bul, Afghanistan, Hikvision
well settled, meaning well paid.
Wkg is working. PQ means pro-
fessionally qualified, T’tot is a
teetotaler, and a PSU is a public
sector unit—where jobs im-
press.
The ads also often list the
father’s job—fthr sr bnk offcr,
ERIC BELLMAN/THE WALL STREET JOURNAL
or father senior bank officer,
for example.
The personals also have
their own unique vocabulary. If
a woman is listed as “homely”
it means she doesn’t work. If a
man is issueless (abbreviated
as i’less) after a divorce, it
means he doesn’t have children.
Potential mates listed as having
a “wheatish” complexion have
R.K. Agarwal, with ads. light-brown skin.
The space in the ad around
important basics for match- the text—up to a full page—can
makers: caste, birth date, edu- imply wealth. Some of India’s
cation level, height, complexion most affluent will spend thou-
and salary. Most are an alpha- sands of dollars for prominent
bet soup of acronyms and ab- ads.
breviations. The Times of India, an Eng-
Potential brides are B’ful and lish-language paper read by
grooms H’som. SM4 is suitable those considered upper crust,
match for, and Send BHP means is prime hunting ground. A ba-
send biodata (or a résumé), sic ad for one week in its
horoscope and photo. W’stld is “Times Soulmate” weekly in-
cameras were installed “to
monitor nonsensitive electrical
closets for theft prevention,”
says a State Department
spokesperson, referring to clos-
ets housing electronics equip-
ment.
Last year, the security-indus-
try trade publication IPVM pub-
lished a procurement order for
several dozen Hikvision cam-
eras, revealing their presence in
the Kabul embassy. The govern-
ment canceled the order in Sep-
tember 2016 and removed the
Hikvision cameras already in
the embassy.
A State Department official
says that was because security
officials at the department, who
are supposed to be notified of
new security-related installa-
tions, weren’t given a heads up
about the purchase.
In a written statement,
Hikvision said it had no knowl-
edge of the Kabul project’s par-
ticulars “on the end-user level,”
and that “accepting or remov-
ing particular products is al-
ways at the discretion of the
end-user.”
Shortly thereafter, the Gen-
Party Ties
Hikvision is
part-owned by the
Chinese government
through a series of
entities that report
up to the body that
regulates
state-owned
enterprises.
100%
Electronics 52nd
Research
research
Institute
laboratory
Sources: Hikvision; staff reports
sert in New Delhi costs around
$55.
The number of print ads has
fallen from peaks about 15
years ago. The Times of India
used to have 12 pages of ads in
some of its regional editions.
Today it usually has around
half that, people at the paper
said.
Mr. Agarwal, the matchmak-
ing father, stuck to the basics in
the ad for his son, Mohit: caste,
age, educational degrees and
height. The ad also mentions
Mohit works for an interna-
tional company for an impres-
sive salary.
Over time, Mr. Agarwal tin-
kered with the wording. He
switched out his phone number
for his email address because
he was getting too many re-
sponses. He added that his son
was handsome. Then the re-
tired state power company
manager tossed in a bit of his
own credentials, mentioning
the potential groom’s father
was a high-ranking government
officer.
He said he got 150 or more
THE WALL STREET JOURNAL.
public security.”
A spokesman for Italy’s gov-
ernment procurement agency
said the supplier “guaranteed a
level of security appropriate to
the risk,” but that “no one can
be absolutely sure that a partic-
ipating firm has not surrepti-
tiously inserted backdoor de-
vices and security
vulnerabilities for malicious
purposes.”
Hikvision says the Italian
legislator’s concerns about se-
curity risk are “totally un-
founded and absurd.”
Nathan Brubaker, an analyst
at U.S. cybersecurity firm Fire-
Eye Inc., says the software vul-
nerabilities identified by the
XINHUA/ZUMA PRESS
Department of Homeland Secu-
rity could make those Hikvision
cameras prone to a hacking at-
tack similar to the “Mirai” de-
nial-of-service attack on the in-
ternet last year.
Security experts say back-
doors that allow outsiders to
bypass security protections are
often difficult to identify. Such
vulnerabilities can be acciden-
tal—the result of flaws in the
software’s original design or in
updates.
The Hikvision flaws identi-
fied by the Department of
Homeland Security affected
more than 200 camera models
and potentially tens of millions
of shipped devices, estimates
John Honovich, editor of IPVM.
They made it possible for out-
siders to hack into internet-
connected Hikvision cameras in
HIKVISION
just a few steps, according to
Mr. Honovich and FireEye, the
cybersecurity firm. Hikvision
eral Services Administration re- acknowledged the flaws af-
moved Hikvision from a list of fected some cameras, but dis-
automatically approved suppli- misses Mr. Honovich’s asser-
ers, companies that make their tions as “unfounded
products in countries that have insinuations and hearsay.”
certain trade agreements with Hikvision says it cooperated
the U.S. The agency says it with the DHS to fix the problem
nixed the firm after it was and directed customers to a
alerted the products were man- software fix. “This issue did not
ufactured and assembled in cause a noticeable impact on
China, which isn’t on the list. Hikvision’s overseas business,”
U.S. government agencies that a company spokeswoman says.
want to buy Hikvision gear Genetec, a Canadian security
can’t go through the GSA sys- company with a U.S. presence,
tem, but have to take extra requires customers who want
steps such as showing the to buy Hikvision cameras to
items are fairly priced. sign a waiver disclaiming
Hikvision says its gear was Genetec of liability in the event
listed on the GSA by two resell- of a security breach. Pierre
ers, which it says it hadn’t au- Racz, the Montreal-based com-
thorized. Hikvision says it pany’s chief executive, says
asked the resellers to remove concern over cameras made by
the products from the GSA list. “companies owned or con-
In January, Italy’s govern- trolled by the Chinese govern-
ment awarded a $49 million ment” and “Beijing’s reputation
contract to a supplier in a deal for aggressive cyberespionage”
that included the installation of led him to require the waiver.
Hikvision cameras at some Hikvision says “linking
state buildings. The deal was Hikvision with espionage is
publicly questioned in June by simply outrageous and com-
Italian legislator Arianna Spes- pletely unfounded.”
sotto, who said the cameras Hikvision has been selling
“could pose a risk to national cameras to the Memphis police
department since 2007. Officers
can observe streets from a cen-
State-
tral command center. Some de-
owned Assets Government body vices use advanced lighting
Supervision and that oversees state- technology to produce clear im-
ages even in the middle of the
Administration owned companies
night.
Commission
“We probably make up to
SASAC owns 100 arrests every year” because
100% of CETC of the cameras, including for
car theft, robbery and murder,
China says Lieutenant Joseph Patty II,
State-owned who manages the system.
Electronics manufacturer of military
Technology electronics equipment He says the city started us-
Group ing the cameras long before
100% concerns about hacking came
into play. The department uses
a decentralized network where
China Industrial and cameras aren’t connected to the
Electronics
electronics police mainframe computer, he
Technology says.
research and
HIK Group
development “At the end of the day, they
are the No. 1 camera manufac-
2% 40% turer in the world,” says Lt.
Patty. “They make a lot of cam-
Hangzhou eras and many people use
Hikvision them, even if they don’t say
Digital Hikvision on the product.”
Technology —Liza Lin and Wenxin Fan
THE WALL STREET JOURNAL. contributed to this article.
responses a month for the
ads—he filled two diaries keep-
ing notes on the process—but it
still took close to two years to
lies because the father asked
about the size of his home.
“Are you marrying your daugh-
ter to the house or to my son?”
find the right match. he asked him.
The biggest barrier was usu- He also turned down a
ally astrological incompatibility. woman because she wanted to
He diligently plugged the birth meet his son directly, a normal
dates of all potential mates into demand on marriage websites
an online calculator that would but rare with the traditionalists
score compatibility on a 36- who use newspapers. “On the
point scale. Anyone scoring be- websites, the girls are too ad-
low 20 would be emailed a vanced,” he said. “They would
form rejection letter: “Thanks try to approach the boys them-
for the proposal. We discussed selves and bypass me, which I
the matter. But the result is not do not like.”
positive. Sorry.” In January, he got a re-
He also looked for someone sponse to his ad that looked
from his own caste, who was promising. The youngsters’
educated and working, and who horoscopes were compatible,
was good looking—and not as the woman was the right age
tall as his son. and height, and even Mr. Agar-
Only about five proposals wal’s spiritual adviser liked the
each month were promising match.
enough to follow up with a Mr. Agarwal met with the
face-to-face meeting. He would parents, and they felt the
meet with the prospective match would work. Then Mohit
bride’s parents at a nearby mall met the young woman, and
over tea and watch how they they closed a deal. Their wed-
carried themselves and how ding is scheduled for Dec. 10.
they talked. —Vibhuti Agarwal
He rejected one of the fami- contributed to this article.
 For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
THE WALL STREET JOURNAL.
GREATER NEW YORK
Gateway Struggles to Fill CEO Job
BY PAUL BERGER
Wanted: Chief executive
for one of the nation’s larg-
est infrastructure programs.
Must be willing to work for
two governors and alongside
three public agencies. Just 10%
of $30 billion in neces-
sary funding secured. Pay cut
may be required.
The Gateway Program De-
velopment Corp., whose mis-
sion is nothing less than to im-
prove and expand
transportation for hundreds of
thousands of daily passengers
on Amtrak and NJ Transit be-
tween Newark and New York
City, is struggling to find a
leader.
The corporation’s trustees
had hoped to appoint a chief
executive by the end of this
summer. But they are still
searching, and now say they
aim to name a new leader by
the end of the year, according
to those involved in the
search.
STEVE REMICH FOR THE WALL STREET JOURNAL
Maureen Rover with a group of kindergartners. She founded a literacy program in New York City for poor children at high risk of failure.
Program Gives Children a Leg Up on Literacy
BY LESLIE BRODY
Maureen Rover was having
her usual coffee and muffin
for breakfast one morning in
the late 1990s when a newspa-
per story about New York City
state test scores caught her
attention. She was dismayed
to see that a third of the city’s
public-school children were far
behind in reading at the cru-
cial gateway of third grade.
Out went her plan to relax
in retirement after a career in
banking and educational pub-
lishing. Instead, Ms. Rover,
now 74 years old, founded the
Reading Team, a nonprofit
that brings free literacy les-
sons and books to poor chil-
dren at high risk of failure.
Launched in 2001, it has
grown to reach more than 800
children in Harlem, from pre-
school through eighth grade,
at P.S. 36 and a separate site
nearby. An independent study
in 2009 found the program
* *
If a decision can’t be
reached soon on a permanent
CEO, a person familiar with
the hiring process said an in-
terim leader may be hired to
replace the current interim
chief, who has held the job
since July 2016.
$400K
Approximate minimum salary for
the CEO of the Gateway Program
“The project is not suffering
for this,” said the person fa-
miliar with the process, noting
that environmental and finan-
cial planning for key stages of
the work continue to advance.
Gateway’s interim executive
director, John Porcari, divides
his time between Gateway and
WSP USA, the engineering and
consulting firm where he is
Reading Team Gets
Results, Study Finds
Sheldon Shuch, a former
city Department of Education
administrator in charge of liter-
acy in Harlem, found in his
2009 study that the Reading
Team had positive effects, with
students who joined its pre-
school program going on to
read on grade level in third
grade and outperforming the
city overall on state tests.
He cautioned, however, that
had a significant impact.
Ms. Rover, a New Yorker
who volunteers as president of
the nonprofit, recently re-
ceived an award from World of
Children, a California group
that honors five people around
the globe each year who make
a difference in children’s lives.
The $50,000 prize will go to
NY
president of U.S. advisory ser-
vices. He said he had expected
to step down from Gateway by
now.
“The trustees have inter-
viewed a broad slate of candi-
dates for CEO and we hope to
make an appointment before
the end of the year,” Gateway’s
Chairman, Richard Bagger,
said in a statement.
Gateway encompasses a se-
ries of multibillion-dollar proj-
ects to upgrade the rail net-
work between Newark and
New York City, while doubling
capacity from two tracks to
four. It includes digging a new
tunnel under the Hudson River
so the current century-old tun-
nel, which was damaged in
2012 by superstorm Sandy, can
be repaired.
Replacing a temperamental
swing bridge over the Hacken-
sack River that single-hand-
edly stalls train traffic on Am-
trak’s Northeast
Corridor connecting Washing-
ton and Boston, also is part of
the sample size was small and
many children left the group he
was tracking for a variety of rea-
sons. Of the 302 students as-
sessed in preschool, 79 remained
in the study 4½ years later.
“One could argue the kids
who dropped out were the
worst readers, or the best read-
ers, who knows?” Mr. Shuch
said. “But Maureen [Rover] is
very sincere, she is really doing
important stuff, and she stuck
with the program, which is very
unusual. What she was doing is
very commendable.”
support the Reading Team,
whose $1 million annual bud-
get is funded by a range of
foundations and donors.
What is key, Ms. Rover said,
is that the Reading Team
starts working with children
early, through partnerships
with a range of Harlem child-
care centers. “When they’re 3
the program.
Eventually, the Gateway
program will require the ex-
pansion of New York Penn Sta-
tion—plagued by delays, in
part because it has been oper-
ating over capacity for years—
to cover an additional block on
Midtown Manhattan’s west
side.
The Gateway project is ex-
pected to take more than a de-
cade to complete.
Given the size and scope of
the program, and some of the
unique institutional issues, the
pool of executives capable of
overseeing such an enterprise
is small. The ideal candidate
must have the diplomatic skills
to liaise between state and
federal agencies, and the proj-
ect-management skills to steer
multibillion-dollar projects.
The salary range, said to be
upward of $400,000 by the
person familiar with hiring, is
high for the public sector, but
low for private-sector manage-
ment of a program this size.
Other nonprofits also are
trying to tackle the literacy cri-
sis in high-poverty neighbor-
hoods. One called Teaching
Matters is helping 31 public ele-
mentary schools in the Bronx
develop its staff.
New York City Mayor Bill de
Blasio has dispatched literacy
coaches to high-need districts in
an effort to get all second-grad-
ers to read on level by 2026,
but skeptics say students won’t
make real strides until city pub-
lic-school class sizes are smaller.
—Leslie Brody
and 4, they still believe they
can do anything,” she said. In
the nonprofit’s after-school
program for later elementary
grades, the work is more diffi-
cult: “By the time they’re re-
ferred to us, they’re already
feeling they’re not very smart
or they’re not good kids be-
Please see TEACH page A10B
“First Republic not only cares about their
communities, they care about the future
of the kids in those communities.”
COMMON SENSE MEDIA
James Steyer, Founder and Chief Executive Officer
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Monday, November 13, 2017 | A10A
Ben Walsh, who isn’t registered with any political party, spoke to
supporters last week after being elected mayor of Syracuse.
Independent’s Win
In Syracuse Spurs
Hopes of Others
BY MIKE VILENSKY
The outcome of last week’s
mayoral race in Syracuse is
being hailed by independents
as a possible precursor to
more candidates carving paths
outside of the traditional po-
litical parties.
Ben Walsh, a 38-year-old
independent who has never
held public office, handily de-
feated his Republican and
Democratic rivals, a victory
that has earned comparisons
to figures such as Emmanuel
Macron, a political neophyte
who won the French presi-
dency earlier this year by cre-
ating his own party.
“What happened to Macron
in France happened in Syra-
cuse on a local level,” said
Ryan Clancy, an independent
and strategist for No Labels, a
national group that advocates
for political consensus. “We
would like to think this is in-
dicative of a trend and it will
be reinforcing,” he added.
Syracuse’s new mayor-elect
isn’t registered with a party
but appeared on ballots on the
Reform, Independence, and
Upstate Jobs lines. He will be-
come the only mayor of a
large city in New York not
elected as a Democrat or Re-
publican.
Mr. Walsh, who served as
an aide to Democratic Mayor
Stephanie Miner and had
backed Gary Johnson on the
Independence line in the 2016
presidential election, initially
had discussions with both ma-
jor parties, but wouldn’t agree
to register with either. Ms.
Miner will leave office in Jan-
uary after reaching her term
limit.
During his campaign, Mr.
Walsh vowed to put together a
diverse coalition focused on
improving quality of life as
part of his mayoral platform,
which ranged from weighty is-
sues such as combating opioid
addiction and HIV/AIDS to
quirkier ideas like repealing a
ban against sledding on Syra-
cuse city property.
MIKE GREENLAR/THE SYRACUSE NEWSPAPERS/ASSOCIATED PRESS
“I’ve never been affiliated
with a political party, so I
thought to enroll in one for
the sake of running for mayor,
I wouldn’t be staying true to
myself,” he said.
Mr. Walsh appeared to be a
long shot in the seat of Onon-
daga County—which Hillary
Clinton won by more than 10
points in the 2016 presidential
election—until he won a write-
in campaign in the Indepen-
dence Party primary, defeating
the party’s preferred candi-
date and securing the
party’s line for the general
election.
‘What happened to
Macron in France
happened in Syracuse
on a local level.’
Mr. Walsh then worked to
win endorsements from Demo-
crats and framed himself as a
break from political brawl-
ing in a polarized era and city
with the slogan “Rise Above.”
“People here, like a lot of
people around the country, are
a little fed up with constant
fighting,” said Ed Riley, a 62-
year-old Syracuse developer
and registered Republican who
backed Mr. Walsh.
The city also is grappling
with a poverty crisis, a focus
of Mr. Walsh’s campaign that
helped him win over Demo-
crats.
“I believe wholeheartedly
Ben is committed to the eco-
nomic growth of the city,” said
Sharon Owens, a Democratic
activist in Syracuse who broke
with her party and endorsed
Mr. Walsh.
It helped that Mr. Walsh
had local name recognition as
the son of James Walsh, who
represented the Syracuse area
as a Republican congressman
for 20 years.
Ben Walsh’s success Tues-
Please see RACE page A10B
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A10B | Monday, November 13, 2017
STEVE REMICH FOR THE WALL STREET JOURNAL
Literacy mentor Vanessa Maldonado from the Reading Team
helped student Sindou Diomande with his homework.
TEACH
Continued from page A10A
cause they feel lost or limited
in their abilities.”
By its tally, the Reading
Team said 79% of its students
in grades three through five
passed state tests in English
last spring, almost double the
rate for the city as a whole.
By another measure, the
Test of Early Reading Ability,
its preschoolers jumped from a
mean score in the 22nd per-
centile nationwide in fall 2016
to the 88th percentile by June.
That test looks at knowledge of
the alphabet and the ability to
construct meaning from print.
The Reading Team uses a
combination of small group
lessons, songs, puppets, story-
telling and computer-based
lessons from Waterford Early
Learning, a software program
that adapts to each student’s
skills and pace. Students get
one-on-one help if they need it.
On a recent morning at P.S.
36, 11 prekindergartners sat in
three different circles, deter-
mined by their needs. Their
playful exercises were steeped
in the traditional approach of
phonics, or decoding words by
sounding them out. In one clus-
ter, literacy mentor Mary Escal-
ante held up a picture of a yo-
yo. “Can you make the sound of
a Y for me?” she asked,
prompting a chorus of “ya ya
ya” from her young charges.
Their homeroom teacher,
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Betty Kouassi, said the small
group lessons helped build con-
fidence. “They’re not fearful of
using the tools,” she said, “and
have a sense of ‘I can do it.’ ”
At P.S. 36, every K-2 class
comes to the Reading Team’s
room twice a week. Older stu-
dents are referred by teachers
for after-school enrichment.
The project’s other venue is
located in a former hotel on
Adam Clayton Powell Jr. Boule-
vard in Harlem. Children from
some nearby child-care centers
go twice a week for 90 min-
utes. Its after-school program
also attracts students who
need extra help from 18 local
elementary schools for more
than three hours every week-
day. Middle schoolers come on
Saturdays.
David McNeal said his son
started attending the Reading
Team daily in kindergarten
when he was behind in skill
level, and now he is on target
in third grade, despite his
challenges with attention defi-
cit hyperactivity disorder.
“Not only are the children re-
laxed but they’re engaged,”
Mr. McNeal said.
The Reading Team’s literacy
mentors often are graduate stu-
dents in education. They get 50
hours of training before start-
ing, according to the program.
Ms. Rover didn’t expect to
be working so hard at the non-
profit at this point. “I accepted
it would take a while to raise
money,” she said, “but I’m a lit-
tle bit surprised that I’m still
doing heavy lifting, 17 years in.”
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GREATER NEW YORK
N.J. Project Scraps Mall in Reboot
BY KEIKO MORRIS
Plans for one of New Jer-
sey’s largest mixed-use devel-
opments once called for a mas-
sive “fortress mall,” a 2.2
million-square-
PROPERTY foot building
clad with giant
digital screens
rivaling Las Vegas and Times
Square, according to a 2012
marketing video.
Fast-forward five years: The
venture behind the $2.5 billion
Sayreville development has
brought in a new partner,
slashed the amount of retail
space and jettisoned the mall
concept in favor of a down-
town-like retail village that
mixes shops, restaurants, of-
fices and apartments.
“Retail used to stand alone,
but now in many cases, it’s not
able to stand alone,” said
Mark Toro, a managing part-
ner at North American Proper-
ties, which recently joined the
development venture. “Here
you will have, as on a city
street, storefronts one after
another and a pedestrian ex-
perience that has much more
appeal than the sidewalk of a
shopping center or the inte-
rior of a mall.”
The new plans and
new partner reflect
the upheaval in the
retail industry.
The new plans and new
partner of this 418-acre project
in central New Jersey, now
called “Riverton,” reflect the
upheaval in the retail industry
across the country, as both
merchants and landlords adjust
to changing shopping habits
and growing e-commerce.
As many large traditional
mall chains cut store locations,
mall owners have been adding
dining and entertainment ven-
ues, fitness centers, medical of-
fices and in some cases super-
markets to boost customer
visits. Owners also have incor-
Rendering of a Sayreville, N.J., development that was reworked to create a downtown-like retail village.
porated apartments and office
space near or on their proper-
ties as a way to build in regular
customer traffic.
“The enclosed mall is still
viable, however the United
States has been over-stored
and over-malled for years with
almost four times the [retail]
density of other developed
countries,” said Michael Brown,
a partner in the retail practice
of A.T. Kearney, a strategy and
management-consulting firm.
“We don’t need more of them.”
Nationally, new retail con-
struction has fallen over the
years, dropping to 92 million
square feet of stores and shop-
ping-center construction starts
expected this year from 118
million square feet in 2014, ac-
cording to Dodge Data & Ana-
lytics, a construction industry
research and software firm.
The updated Sayreville proj-
ect calls for about 1 million
square feet of retail space,
roughly half the amount of re-
tail space anticipated in a prior
version. The development also
will include 1 million square
feet of office space and about
GREATER NEW
YORK WATCH
CONNECTICUT
Budget Details Lure
Legislators to Capitol
Connecticut lawmakers aren’t
done yet with the state budget.
There are tentative plans for
members of the Senate and
House to return to Hartford, the
state capital, this week—the
Senate on Tuesday and the
House on Wednesday—to make
several changes to the recently
passed, two-year, $41.3 billion bi-
partisan budget.
Lawmakers are expected to
weigh compromise language being
crafted by Democratic Gov. Dannel
Malloy and the Connecticut Hospi-
tal Association that is supposed
to ensure the state receives as
much as $1 billion in federal reve-
nue. The money is tied to a tax
on hospitals as part of a federal
reimbursement formula.
Legislators also are expected
to fix language that held up
$26.4 million in elderly rental as-
sistance, as well as some other
changes described as minor.
—Associated Press
NEW YORK
Medical Marijuana
Approved for PTSD
New York Gov. Andrew
Cuomo signed legislation Satur-
day to add post-traumatic stress
disorder to the list of ailments
that legally can be treated with
medical marijuana.
The PTSD bill was part of a
package of legislation Mr. Cuomo
signed to mark Veterans Day.
“Our veterans risked their
lives in order to defend the ide-
als and principles that this nation
was founded upon and it is our
duty to do everything we can to
support them when they return
home,” Mr. Cuomo said.
The Democratic governor said
19,000 New Yorkers with PTSD
could be helped by medical mari-
juana. The potential beneficiaries
include veterans, as well as po-
lice officers and survivors of do-
mestic violence, crimes and acci-
dents, Mr. Cuomo said.
New York’s medical-marijuana
law allows patients with illnesses
including cancer, AIDS and Par-
kinson’s disease to use non-
smokable forms of the drug.
—Associated Press
* * THE WALL STREET JOURNAL.
2,000 residential units of both
apartment and single-family
homes—the same amount in-
cluded in prior plans.
The site, located on the Rar-
itan River and along several
highways, will include a marina
and two hotels.
While apartments, single-
family housing and office space
have made up a significant por-
tion of the development’s plans
since its early stages, these ele-
ments had been separate, sur-
rounding a traditional mall and
big-box stores and accompa-
nied by a sea of parking.
PGIM Real Estate, the real-
estate business of Prudential
Financial Inc., has been an in-
vestor in the site since 2008
and had formed the previous
joint venture with O’Neill Prop-
erties Group.
It won support from local
and state officials and invested
millions of dollars to clean up
the site, once owned by a paint
manufacturer.
In March, PGIM reached an
agreement to acquire O’Neill
Properties’ stake in the devel-
opment for an undisclosed
RACE
Continued from page A10A
day stands in contrast to oth-
ers independents around New
York.
In the New York City may-
oral election, no candidate
outside of the two parties
scored more than 3% of the
vote. Bo Dietl, an independent
who appeared in two televised
debates, scored just 1%.
Former New York City
Mayor Michael Bloomberg ran
his first race as a Republican
and then became unaffiliated,
but he maintained the GOP
ballot line in his elections.
Rachel Honig, who lost a
New York City Council race
while running without a major
party, said Mr. Walsh’s win is
“absolutely hopeful, but…just
the start,” adding that candi-
dates without a party still of-
ten lack endorsements and do-
nations.
State University of New
Jets Lose in Tampa, Fall to 4-6
TAKEN DOWN: Jets linebacker Demario Davis stopped Buccaneers
running back Doug Martin on a play Sunday, but New York still
lost the away game 15-10. Next week is a bye week for the Jets.
WAKEFIELD BEASLEY & ASSOCIATES
amount. North American Prop-
erties was tapped as a new
partner because of its record
developing suburban mixed-use
communities with an urban
vibe and pedestrian-friendly
streetscape, Mr. Toro said.
The Sayreville develop-
ment’s previous plan received
approvals, as well as a $223
million Environmental Redevel-
opment & Growth Grant from
the New Jersey Economic De-
velopment Authority. The new
venture, due to be completed in
2021, will have to get approvals
from local and state agencies
for the amended plan and, af-
terward, will begin the process
of securing financing. It al-
ready has the support of Sayre-
ville Mayor Kennedy O’Brien.
Mr. O’Brien, now in his fifth
term, began working toward
redeveloping the former indus-
trial property almost two de-
cades ago with county officials.
“All things go in a circle,”
Mr. O’Brien said. “For me, Main
Street is something that is very
comfortable and familiar to me,
but for some of my kids it’s go-
ing to be a new experience.”
York political scientist Gerald
Benjamin said New York vil-
lages and school boards often
elect nonpartisan leaders, but
there is little precedent for an
unaffiliated mayor in a major
jurisdiction.
Located between Albany
and Rochester, Syracuse is one
of upstate New York’s largest
cities, with some 150,000 peo-
ple. In the early 1900s, the city
elected a mayor on the Pro-
gressive line, which was affili-
ated with President Theodore
Roosevelt.
Nick Troiano, an indepen-
dent and director of the Cen-
trist Project, a group that
backs independent candidates,
was in contact with Mr. Walsh
and cheered the outcome. Mr.
Troiano said the environment
is “primed” for independents
to succeed because both par-
ties poll poorly.
“But it takes a credible indi-
vidual to be competitive be-
cause voters want to know
they’re not wasting their
votes,” he said.
STEVE NESIUS/ASSOCIATED PRESS
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
THE WALL STREET JOURNAL.
On ‘The Good Doctor,’ Freddie Highmore plays a gifted doctor with autism. Antonia Thomas and Nicholas Gonzalez, below center and right, also star in the medical drama.
A Show Redefines the TV Hero
The recipe for the surprise ABC hit about a doctor with autism that has outperformed ‘This Is Us’ and ‘NCIS’
BY JOHN JURGENSEN
FEW TV LOVERS would associate
broadcast networks with innova-
tion in 2017. But ABC’s “The Good
Doctor” is the latest proof that the
old networks still can conjure a
new drama that resonates with
viewers, just like HBO and Netflix
do, every so often.
“The Good Doctor” is the only
runaway hit among the 13 dramas
the big over-air broadcasters have
unveiled this fall. Now the indus-
try is analyzing what made it click
when so many others have failed
to take off.
The show revolves around a
young physician in San Jose, Calif.,
with autism spectrum disorder. It
made its debut Sept. 25 on ABC and
is averaging 17.5 million total view-
ers an episode—more than estab-
lished chart-toppers like NBC’s “This
Is Us,” the breakout hit from last
season, and CBS warhorse “NCIS.”
Since so many other shows
struggle to get noticed, people in
the industry can only speculate why
one turns into an apparent smash.
One take: Like “This Is Us,” a drama
offering a warm weather system of
family emotions, “The Good Doctor”
is an uncynical alternative to the
grim happenings in many other TV
series and on the news.
A more important factor in the
success of “The Good Doctor” may
be the way it switches up the fa-
miliar formula of a medical drama,
using a character who doesn’t
speak or act like a hero.
DA VINCI, VAN GOGH, FERRARI?
NEW YORK AUCTIONS REV UP
BY KELLY CROW
THE WORLD’S MAJOR auction
houses hope the global art market
is ready to hit the gas this week af-
ter several seasons of riding the
brakes.
From a red Ferrari racecar at
Sotheby’s to a long-lost Leonardo
da Vinci at Christie’s, the houses
are trying to ride the market run-
up by packing all sorts of unusual
pieces into their traditional sales
of impressionist, modern and con-
temporary art in New York. The
resulting mix feels trophy-laden
but also something of a grab bag,
dealers say.
Sotheby’s, Christie’s and Phil-
lips aim to sell at least $1.6 billion
worth of art combined, up from $1
billion last fall but still down from
the last market peak two years ago
when similar fall sales topped $2.3
billion. Christie’s said its $885 mil-
lion in expected sales for the week
represents a 74% bump over last
fall—a sign that sellers are feeling
LIFE&ARTS
‘The Good Doctor’
ABC, Mondays at 10 p.m. ET
THE PLOT: A surgical resident with
autism balances medical brilliance with
interpersonal challenges.
THE AUDIENCE: 17.5 million total
viewers an episode.
WHY IT’S WORKING: A very different
kind of doctor changes up the familiar
rhythms of a medical drama.
Surgical resident Dr. Shaun
Murphy, played by Freddie High-
more, has autism and savant syn-
drome, which allows the character
to zero in on medical details that
aren’t apparent to other people.
He also starts out with zero bed-
side manner and difficulties in
navigating hospital protocol and
delivering sensitive diagnoses.
Within seconds of meeting one
patient and looking at her scans,
Shaun announces, “She has a sar-
coma, a malignant tumor.”
The concept for “The Good Doc-
tor” originated with a hit series of
the same name in South Korea. Ex-
ecutive producer Daniel Dae Kim, a
star of “Lost” and “Hawaii Five-O,”
brought the show to Hollywood,
where it was developed by Sony
Pictures Television and adapted by
showrunner David Shore, the cre-
ator of “House.”
That hit series ran for eight sea-
ART AND AUCTIONS
confident despite a shaky sale in
London last month where a Fran-
cis Bacon portrait estimated at
$80 million didn’t sell.
Christie’s said the Bacon’s stum-
ble didn’t stall the market’s mo-
mentum. Simon Shaw, Sotheby’s
co-head of impressionist and mod-
ern art world-wide, agreed, saying
other factors matter more. “The
Asians are maturing as collectors
and feeling liquid, and the Ameri-
cans are all-in,” he said, with new
and seasoned bidders who will
likely spur competition.
That’s why sellers of various
kinds of art—or cars—are shoe-
horning them into these high-pro-
file sales. Da Vinci’s estimated
$100 million portrait of Jesus
Christ as the world’s savior, or
“Salvator Mundi,” would typically
anchor an old masters sale at
Christie’s. But its owner, Russian
billionaire Dmitry Rybolovlev,
agreed to let the house drop the
painting into its contemporary sale
Wednesday so it could be offered
alongside Andy Warhol’s “Sixty
TELEVISION
sons on Fox, starring Hugh Laurie
in the title role of a doctor who is
as brilliant as he is bristly. House
uses cutting wit and insults to get
a reaction out of patients and col-
leagues. In the “The Good Doctor,”
Shaun’s statements are just as
blunt—“You are very arrogant,” he
observes of a lead surgeon—but he
has no ulterior motives.
In character, Mr. Highmore
speaks in a neutral tone with sing-
song fluctuations. Shaun’s dialogue
is “basic,” Mr. Shore says. “There
are no metaphors or flourishes.
It’s either short sentences or long
run-on ones.”
For the show’s writers, it’s been
challenging to become fluent with
Shaun’s voice. “Typical TV writing
is witty banter. It’s people being
super smart and funny and not
saying what they really believe,
because they’re always hiding
their cards,” says co-executive pro-
Last Suppers.” The 1986 wall-size
silkscreen pays homage to another
da Vinci masterpiece; the house
estimates the Warhol will sell for
$50 million.
Christie’s marketed the da Vinci
around the world, from San Fran-
cisco to Hong Kong, emphasizing
its rediscovery in 2005. The auc-
tion house labeled the work the
last “doubt free” da Vinci in pri-
vate hands, a nod to the fact that
museums like London’s National
Gallery have vouched for its au-
thenticity.
Old Master dealer Richard Feigen
said he believes the work is genuine
but its canvas has undergone such
extensive restoration that “there’s
only a skeleton of da Vinci left on
the canvas.” Mr. Feigen added,
“There’s not enough of his original
brushstrokes to convince me to ever
recommend anyone buy it.” Chris-
tie’s said the painting hasn’t been
Please turn to page A13
Leonardo da Vinci’s ‘Salvator Mundi,’
right, has a $100 million estimate.
Monday, November 13, 2017 | A11
ABC (2)
ducer David Hoselton, who has
written for three of Mr. Shore’s se-
ries, including “House.”
The “Good Doctor” writing staff
routinely consults Melissa Reiner,
a therapist who works with chil-
dren with autism spectrum disor-
der, to make sure their story ideas
are relatively realistic to the world
of ASD. Co-executive producer Wil-
liam Rotko recalls asking Ms.
Reiner about how Shaun might in-
teract with people outside the
structured environment of the hos-
pital. In the episode Mr. Rotko
wrote, a fellow doctor, played by
Antonia Thomas, discovers that in-
stead of asking Shaun direct ques-
tions, she can better communicate
with him using statements.
Because autism manifests itself
so differently among people on the
spectrum, “that gives us a certain
amount of license” with the char-
acter, Mr. Shore says. In early epi-
sodes, Shaun has adapted to un-
derstand sarcasm on the job, and a
brief interaction with a female
neighbor suggests the show will
explore his understanding of ro-
mantic relationships.
Shaun’s unvarnished manner
disarms or stirs up characters he
encounters, and perhaps gets audi-
ences to pay closer attention to his
silences and body language.
“Scenes with Shaun shouldn’t be
like scenes with any other charac-
ter on TV. If they are, we’re get-
ting lazy,” Mr. Hoselton says.
“The Good Doctor” borrows a
visual device from the original Ko-
rean series: animated anatomical
images that swirl around Shaun’s
head as he analyzes the case be-
fore him. “When you’re working
with a character who doesn’t wear
his heart on his sleeve, it’s nice to
be able to see what he’s thinking,”
Mr. Shore says.
Producers say they wanted to
avoid portraying Shaun’s disorder
as a sort of medical superpower.
In the first episode, as hospital
leaders argue about whether a
doctor with autism should be al-
lowed to join the staff, one of
them makes a remark about “Rain
Man.” The Oscar-winning movie,
about a savant and his long-lost
brother, is almost 30 years old, but
remains a defining portrayal of au-
tism in popular culture.
“It’s viewed now as a cliché,”
Mr. Shore says, who scripted the
reference to “Rain Man” as “a con-
scious desire to separate ourselves
from it.”
CHRISTIE’S IMAGES LTD. 2017
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
A12 | Monday, November 13, 2017 THE WALL STREET JOURNAL.

LIFE & ARTS

WHAT’S YOUR WORKOUT? | By Jen Murphy

At 61, Skiing to
the South Pole
Robert Swan, the first to walk to both poles, is
training for another journey
SIR ROBERT SWAN is the first to
admit that, at 61, he probably
shouldn’t be attempting to walk to
the South Pole.
“I feel like Rocky coming out of
retirement,” says the English-born
polar explorer. In 1986, Mr. Swan,
and his team of two other men,
completed a 70-day, 900-mile jour-
ney to the South Pole, the longest
unaided march in history. Three
years later, he walked with a team
of seven people 700 miles to the
North Pole, becoming what he says
is “the first person stupid enough
to walk to both poles.”
He’s returning to Antarctica to
raise awareness around renewable
energy. “Walking to both poles in
many ways was selfish and point-
less,” says Mr. Swan, founder of
2041, an organization dedicated to
preserving Antarctica. “But it
opened my eyes to the effects of
climate change, and this time I’m
walking to prove a point.”
Mr. Swan and his 23-year-old
son, Barney Swan, will embark on
Nov. 15 on the South Pole Energy
Challenge. Once on the continent,
the 600-mile, eight-week journey
on skis will be powered only by
clean-energy technologies. “So
much of this undertaking is psy-
chological,” he says. “Being able to
share our experience with others
will motivate me through the
tough times.”
Mr. Swan was in his late 20s and
early 30s when he undertook his
previous expeditions. “I was in
shape, but I didn’t strategically
train,” he says. “I relied on youth.”
His expeditions, however, took a toll
on his body. Pulling a 350-pound
sled nine hours a day for 70 days in
extreme, subzero temperatures
messed up my knees and lower
back and damaged my hip, he says.
Walking to the poles may have
taken a few years off his life, but
he jokes his upcoming expedition
has probably added a few back.
and knowledge, you’re bloody just
getting warmed up at 61,” Mr.
Swan says.
The Workout
Mr. Swan took up yoga under his
son’s direction. “I have few regrets
in my life, but one is not having
tried yoga sooner,” he says. “I was
an incredibly stiff human being.
I’m more flexible now than I’ve
ever been in my life.” Mr. Swan
needed a hip replacement, but
doctors worried how a prosthetic
would hold up in polar conditions
even as he says they signed off on
the trip. Instead, he’s used a com-
bination of stem-cell therapy and
gentle vinyasa yoga to help negate
his hip pain.
The South Pole is about 9,300
feet above sea level. Mr. Swan has
been training for the altitude with
road cycling. He and his son log
about 200 miles a week, climbing
to elevations between 8,000 and
9,000 feet in the Sierra Mountains.
“I go very, very slow,” he says.
“Barney is miles ahead of me. He
jokes that I’m an old Terminator
just grinding away.” To prepare his trek. His diet is centered around
body to pull a 250-pound sled fish, eggs and vegetables. Thirty
across the South Pole, he wears a days out, he and his son transi-
harness and pulls tires up a trail tioned to a diet high in healthy fats,
near his home. “I’ve frightened such as avocados and fish rich in
quite a few hikers,” he says. omega-3 fatty acids. “I have a slug
Mr. Swan says recovery will be of fish oil and eat a quarter-pound
crucial to his success. “Barney can of butter every day,” he says.
have a dreadful sleep and at 23, On the expedition, the men will
wake up and be fine,” he says. “At eat about 8,000 calories a day, fu-
my age, if I make a mistake with eling constantly on vacuum-sealed
my recovery, I’m going to get salmon, soups and protein-packed
weak. I need to do whatever it grains like kamut.
takes to get eight solid hours of
sleep a night on this journey.” The Gear
Mr. Swan will only use clean-energy
The Diet technologies throughout the expedi-
“I’m an Englishman, so I’d be happy tion. He’ll use a NASA-developed
on a diet of salami and biscuits,” ice-melting system that runs off so-
Mr. Swan says. “But my son told me lar power and biofuels made from
I had to get with the program, so wood chips and algae created by
for the first time in my life I’ve had Shell, one of his sponsors. Portable
to think about my diet.” Mr. Swan solar technology lithium batteries
FROM TOP: RAMIN RAHIMIAN FOR THE WALL STREET JOURNAL (2); 2041

The Swans live in Auburn, Calif.,
known as an endurance hub, and
Barney convinced his father to
train with him this time. “I’m
proof that with today’s technology
lost 60 pounds during his first
South Pole expedition and 25
pounds walking to the North Pole.
He’s added 15 pounds to his 195-
pound frame ahead of his upcoming
from sponsor Goal Zero will charge
devices like a virtual reality camera.
Patagonia, another sponsor, has
provided the father and son with
apparel and dehydrated foods.

Prepare you start to sweat as soon as you

To Be Cold
Whether you’re traveling to see
the Northern Lights or planning a
backcountry ski adventure, it helps
to know how to prepare for cold
weather. Petter Thorsen, founder of
Arctic Training and Expeditions in
Norway, says people usually make
the mistake of dressing too warm,
especially when skiing.
“You don’t want to be so warm
get moving,” he says. “If you’re layer-
ing correctly, you will be cold the
first 10 minutes, but you’ll be com-
fortable the rest of the day as long
as you keep moving.”
Mr. Thorsen suggests a base
layer of thin wool or synthetic mesh
to wick away sweat. A 100% wind-
proof shell jacket and pants are
musts, and he suggests packing a
down jacket to keep the body warm
when not in motion.
“Most people get dehydrated in
the cold because they don’t feel
thirsty,” he cautions. “Add extra water
to your morning porridge, and try to
drink warm liquids like soup or hot
chocolate throughout the day.” Physi-
cal cold-weather endeavors require
physical and mental preparation.
“Pulling tires will build your stamina,
strengthen specific muscles and liga-
ments and prepare you mentally for
the monotonous hard work ahead,” he
says. He also says it helps to spend
time training with experts in cold con- From the top, Robert Swan and the tires he uses in his training regime; Mr.
ditions if possible. Swan on the trails near his Auburn, Calif., home; Mr. Swan is founder of 2041,
an organization dedicated to preserving Antarctica.

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 For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
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THE WALL STREET JOURNAL. Monday, November 13, 2017 | A13

LIFE & ARTS

ART REVIEW

Tracing the Education of Michelangelo

The Met’s exhibition shows how the master used drawing to experiment, refine and expand his work—both on and off the page
BY CAMMY BROTHERS
New York
IT’S RARE THAT a major museum
gives drawings top billing. They are
not seen as alluring enough to en-
gage the public. But one thing they
can do is lift the veil on the artistic
process, even for such a secretive
artist as Michelangelo (1475-1564).
And the Met’s new exhibition does
this beautifully.
“Michelangelo: Divine Drafts-
man and Designer,” organized by
Carmen Bambach, a drawings cu-
rator at the Met, contains 133
drawings by the master as well as
works in other media. She has
transformed an encyclopedic sur-
vey into a page turner.
The show is organized chrono-
logically and thematically, with the
objects providing a generous sense
of context. Michelangelo is pre-
sented not in the familiar way as a
lone genius, but as an apprentice,
collaborator and teacher, an artist
learning from his elders and work-
ing alongside his contemporaries
and students.
Some of the most revealing sec-
tions of this exhibition are the
suites of drawings of the same
theme, each showing subtle correc-
tions or modifications. To see draw-
ings side by side that were made at
the same time but have been dis-
persed geographically for hundreds
of years is to feel like a bystander
in Michelangelo’s workshop.
Among the most stunning exam-
ples are the three versions (four
including a copy in rock crystal) of
“Fall of Phaeton,” an exceptional
composition showing, in the cen-
ter, four horses hurtling toward
earth in various contortions. We
see Michelangelo’s process of revi-
sion, as well as his humility—
scrawled on the pages are notes
seeking the approval of his be-
loved friend, Tommaso dei Cava-
lieri, a young Roman nobleman.
In their subject matter and exe-
cution, “Fall of Phaeton” and sev-
eral other sheets—including “The
Dream,” “The Archers” and “Pun-
ishment of Tityos”—were unprece-
FROM TOP: SOTHEBY’S; 2017 THE ESTATE OF JEAN-MICHEL BASQUIAT/ADAGP, PARIS/ARS
FROM TOP: ROYAL COLLECTION TRUST/© HER MAJESTY QUEEN ELIZABETH II 2017; THE METROPOLITAN MUSEUM OF ART
dented in the history of drawing.
The modeling is so subtle that art
historians initially speculated that
Michelangelo had not used chalk
to shade but to make dots, a tech-
nique known as stippling. This
theory has since been discredited,
but that it came up at all is a tes-
tament to how unusual Michelan-
gelo’s drawings were. Rather than
doing something differently, he
was doing the same thing as ev-
erybody else, only better.
In these drawings, subject mat-
ter was almost secondary, just a
pretext for showing what he could
do with the figure. On the reverse
of “Punishment of Tityos,” he ro-
tated the sheet 90 degrees, traced
the outline of Tityos, and arrived
at the figure of “Risen Christ” (not
visible in the exhibition but in the
catalog), which he used in several
more drawings. This illustrates a
paradox of Michelangelo’s work,
one amply on view: His originality
was not built on an infinite capac-
ity to invent new ideas but on a
Michelangelo’s ‘Three Labours of
Hercules’ (1530–33), left, and ‘Young
Archer’ (1490), attributed to him,
below
is drawing as a form of meditation
and as an act of private devotion.
Ms. Bambach is to be com-
mended for not being stingy with
the architectural drawings—
among the most ravishing ever
made, but sometimes excluded be-
cause they are deemed less acces-
sible or appealing. Michelangelo’s
fortification drawings, repre-
sented here by one stunning ex-
ample, read as a cross between a
biomorphic creature, a crusta-
cean, and a terrifying robot. They
take us into a world in which de-
sign was considered central to de-
fense—as if the Pentagon kept
Frank Gehry on retainer. Another
exceptional sheet in this room is
the drawing of the monumental
stairs of the Laurentian Library,
combining ink wash with red
chalk, profiles and perspective in
strange juxtaposition.
If there is a missed opportunity
here, it is about attribution. A
tremendous efficiency at Art historians still puzzle over sculpture known as “Young Ar-
recycling them. These the ceiling’s meaning, but anyone cher” and “The Torment of St. An-
transformations were looking at the drawings will rec- thony,” a small painting, are said
not about content; the ognize that it is among other to be by Michelangelo but the is-
only principle was things a celebration of the sue is still far from settled. This
never let a good beauty of man. As Michel- would have been an occasion to in-
idea go to waste. angelo’s contemporaries vite the public into the discussion,
The most spec- noted, he fashioned a new but the labels fail to address these
tacular revelation kind of male body: not the matters.
of context comes in slender young figures of Still, for the Met, these days in
the room devoted to the studio apprentices, but hot pursuit of the new, this exhibi-
the Sistine Chapel. bodies that had known work. tion demonstrates how the old can
Accompanying each They may make us think of the be new again, and that there may
drawing is a photo- gym, but to Renaissance eyes be few things sexier than the rip-
graph of the rele- they evoked labor. His critics pled muscles of Michelangelo’s
vant portion of the complained that he showed ruffi- nudes, ever so supplely rendered
fresco, and a digital ans rather than refined men. in soft black chalk.
reproduction of the Emotion is one of the elusive el-
entire ceiling has ements of Michelangelo’s art, it Ms. Brothers is a professor at
been installed over- comes and goes. Among his most Northeastern University and the
head. Viewers can see emotional works were also his author of “Michelangelo, Drawing,
the fragmentary limbs most private, the series of Cruci- and the Invention of Architecture”
and torsos Michel- fixion drawings he did toward (Yale).
angelo drew on the end of his life. The out-
multiple sheets in lines have been traced and re- Michelangelo: Divine
precise relation traced with an obsessive Draftsman and Designer
to where they hand, so that the contours The Met Fifth Avenue,
ended up. can barely be found. This through Feb. 12, 2018

Among the offerings coming up for auction at Sotheby’s in New York are driver Michael
Schumacher’s Ferrari racecar and a Jean-Michel Basquiat painting, below, owned by Yoko Ono.

AUCTIONS
Continued from page A11
altered since it was shown at the National
Gallery a few years ago.
Sotheby’s is displaying Monaco Grand
Prix-winning driver Michael Schumacher’s
race car in the lobby of its Manhattan head-
quarters. They plan to ask at least $4 million
for the cherry-red Ferrari during Sotheby’s
Thursday sale of contemporary art rather
than have its partner RM Sotheby’s offer it in
a typical luxury-car auction. “Why not?” said
Grégoire Billault, head of contemporary art.
The anything-goes exuberance continues
all week. Microsoft co-founder Paul Allen
has asked Sotheby’s to put his Georgia
O’Keeffe pastel from 1925, “Yellow Sweet
Peas,” in its contemporary sale rather than a
sale of American art where O’Keeffes typi-
cally are included. Sotheby’s also has made
room in its impressionist and modern sale
for Dutch artist Vilhelm Hammershøi’s “In-
terior with Woman at Piano, Strandgade
30,” a 1901 scene of a woman playing music
that in past seasons would have been fun-
neled into the house’s sale of 19th-century
paintings. Even boutique house Phillips,
known for selling edgy, young art, has shuf-
fled its offerings to include mainly blue-chip
mainstays like Peter Doig and Franz Kline.
“That’s part of our strategy now,” said Phil-
lips deputy chairman Jean-Paul Engelen.
A surplus of estates has flushed out ma-
terial that has been tucked away for de-
cades. That is catnip for bidders seeking
pedigreed art that they haven’t already seen
or sought. Christie’s said 90% of its impres-
sionist and modern art sale on Monday
hasn’t been seen at auction in the past 20
years. At Sotheby’s, only 20 of its 74 con-
temporary artworks on Thursday have ever
been to auction at all.
Among the estate goods, bidders are
likely to chase after Texas oil heiress Nancy
Lee Bass’s collection, including Vincent van Silver Lining
Gogh’s “Farmer in a Field, Saint Rémy,”
which Christie’s estimates will sell for at Tahitian Silver Pearls
least $50 million. The Bass estate also in-
cludes Mark Rothko’s untitled red-and-yel-
Exquisite silver hue. Brilliant luster. Incomparable beauty.
low rectangle abstract work on paper from Thirty-one captivating silver Tahitian pearls are perfectly
1969 for at least $10 million. The estate of matched in this sumptuous necklace. Rare among Tahitian
Anna-Maria Kellen will ask at least $65 mil- pearls for their light, silvery hue, these enchanting gems
lion for Fernand Léger’s red abstract from
1913, “Contrast of Forms,” also at Christie’s.
range in size from 12mm to a remarkable 14.9mm. Those
Among Sotheby’s high-profile clients is that display such beauty, as well as such extraordinary size,
artist Yoko Ono, who asked the house to sell are truly treasures of the sea. 171/2” length. #30-5054
a Jean-Michel Basquiat she has owned since
1993, titled “Cabra,” for at least $9 million.
Historic-preservation advocate Barbaralee
Diamonstein-Spielvogel has enlisted the
house to sell a group of 24 works on paper
including seven by Jasper Johns, setting up
a rare test of this area of the artist’s market.
Another artist who may be tested is Mr.
Kline, the abstract painter of black slashes 630 Royal Street, New Orleans, Louisiana • 888-867-9583 • ws@rauantiques.com • rauantiques.com
who has prime examples up for bid at Chris-
tie’s and Phillips. Several houses have works Since 1912, M.S. Rau Antiques has specialized in the world’s finest art, antiques and jewelry.
by women artists who have been overlooked Backed by our unprecedented 125% Guarantee, we stand behind each and every piece.
in recent seasons like Suzanne Duchamp,
Lee Krasner and Marlene Dumas. The sales
run through Friday.
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
A14 | Monday, November 13, 2017 THE WALL STREET JOURNAL.

SPORTS
COLLEGE FOOTBALL

Giancarlo
Stanton The Season Just Got Really Weird
Blowout losses by two of the nation’s top three teams expands the list of contenders for the playoff
BY JIM CHAIRUSMI

IT ALMOST WAS the craziest day

in recent college football history.
No. 1 Georgia had already lost
to Auburn and No. 3 Notre Dame
was getting routed in Miami. And
perhaps most shocking of all on
MLB Saturday night, No. 2 Alabama was
trailing in the fourth quarter to a
Mississippi State team that hadn’t
STANTON beaten a Nick Saban-led squad
since 2007. The last time the na-
IS A BIG CATCH tion’s top three teams all lost on
the same day, Lyndon B. Johnson
was president.
But then Crimson Tide quarter-
BY JARED DIAMOND
back Jalen Hurts converted a 4th-
and-4, and with two late touch-
BASEBALL’S ANNUAL general downs, Alabama (10-0) emerged
managers meetings start Monday with a 31-24 comeback victory.
with one big prize available to Nonetheless, the College Foot-
jumpstart the offseason: Miami ball Playoff picture has been

FROM LEFT: ROB FOLDY/MIAMI MARLINS/GETTY IMAGES; JOHN DAVID MERCER/REUTERS

Marlins slugger Giancarlo Stanton. shaken up, with the chaos at the
The meeting at the Waldorf As- top of the standings opening the
toria Orlando brings the top deci- door for an unprecedented situa-
sion-makers from all 30 organiza- tion: a two-loss team in the final
tions together. Though the four. Since the implementation of
majority of major transactions the four-team College Football
likely won’t be finalized this Playoff in 2014, a two-loss team
week—this gathering will allow has never been selected.
teams to start laying the ground- In most seasons, the debate for
work for the winter ahead. one of the final playoff spots
No player will receive more at- comes down to a handful of teams,
tention than Stanton, who blasted but with three weeks to go before
59 home runs in 2017. Following the four-team College Football
the recent sale of the Marlins to a Playoff bracket is set, almost noth-
group led by businessman Bruce ing has been resolved.
Sherman and future Hall-of-Famer No. 10 Auburn (8-2) seemed to
Derek Jeter, the Marlins will likely be out of the national title picture
look to shed payroll and embark after dropping two games before Auburn’s Jarrett
on a full-blown rebuild. Halloween. But Tigers head coach Stidham celebrates
That doesn’t bode well for Stan- Gus Malzahn kept reminding any- during a win
ton’s future in South Florida, con- body who would listen last week against Georgia.
sidering his massive contract: that his team still had a chance.
Stanton will earn a guaranteed $77 “We control our own destiny,”
million over the next three sea- Malzahn said, citing his team’s up- With a 38-20 win over No. 6 Buckeyes, who suffered their worst rently hold the nation’s longest
sons, and if he doesn’t opt out of coming matchups against No. 1 TCU (8-2), No. 5 Oklahoma (9-1) defeat in the Urban Meyer era, a winning streak—14 games—and
the deal at that point, would make Georgia and an Iron Bowl date all but assured itself a spot in the 55-24 loss to Iowa on Nov. 4, re- get a crack at defending champion
at least another $218 million with No. 2 Alabama. Big 12 title game. The irony is that bounded by pounding Michigan No. 4 Clemson (9-1) in the ACC ti-
through 2027. Jeter, the Marlins’ After a 40-17 rout of Georgia, the Sooners will have to play the State 48-3 on Saturday. If they tle game in Charlotte, with a play-
CEO, has been mostly quiet about Malzahn’s proclamation is closer second-place Big 12 team in Dallas were to close out the season by off spot on the line.
his plans so far, but it is widely to reality. “Here we are, Nov. 11, on Dec. 2—likely either TCU or demolishing Illinois, Michigan and The Fighting Irish, meanwhile,
believed in the industry that Stan- and we’re right in the middle of Oklahoma State (8-2)—to secure a an undefeated Badgers team, Ohio close out the season with games
ton will be available. it,” Malzahn said after Saturday’s playoff spot it probably would’ve State will be back in the postsea- against Navy and at Stanford but
The St. Louis Cardinals, who win. “And all the dreams we have son conversation. don’t have the advantage of a con-
missed the playoffs for the second are still alive.” The Pac-12 had been considered ference championship game to fur-
straight year in 2017, have Although the Tigers will be un- the Power-5 conference most likely ther boost their résumé.
emerged as a top candidate for derdogs at home against Alabama
A two-loss team has to be left out of the playoff this Of course, if Alabama, Okla-
Stanton, in large part thanks to on Nov. 25, if they were to upset never been selected for season, as every team in the con- homa, Wisconsin and the winner
their impressive crop of pitching the Crimson Tide and then beat ference has at least two losses. The of the ACC championship (Miami
prospects. The San Francisco Gi- Georgia (9-1) again (in the SEC ti-
the four-team College conference’s top team, No. 9 Wash- or Clemson) all win out, then the
ants and Philadelphia Phillies also tle game on Dec. 2), it will be hard Football Playoff. ington (8-2) was an early season playoff committee will have an
look like potential landing spots. for the selection committee to contender before losses to Arizona easy time setting the bracket. But
Beyond Stanton, there are sev- leave them out of the bracket. State and Stanford. But both the after a crazy weekend in which
eral notable free agents that are The Big 12 Conference has Huskies and Southern California four of the top-10 teams in the na-
sure to be the subject of discus- missed out on a spot in two of the had without a conference title (9-2), which clinched a spot in the tion lost, that is a big if.
sion this week. On the pitching first three years of the College game. If Oklahoma stumbles in the Pac-12 conference title game with a As Alabama’s struggles against
side, Jake Arrieta and Yu Darvish Football Playoff, but added a Big 12 title game, after previously 38-24 win over Colorado on Satur- Mississippi State proved, even the
lead the charge. As for hitters, out- championship game this season to beating both the Horned Frogs and day, have an outside chance of one team that looked like a sure
fielder J.D. Martinez will be the improve its chances. The decision Cowboys in the regular season, the climbing back into the mix. thing this season can be beaten.
most coveted. Martinez, 30, com- was made in part, because Ohio Big 12 will be left with a two-loss The only conference where “Sometimes you need hard,” Al-
piled 45 homers and 104 RBIs for State in 2014 made the playoff conference champion. things appear to be settled is the abama coach Nick Saban said on
the Detroit Tigers and Arizona Di- over two 11-1 Big 12 teams, TCU No. 8 Wisconsin (10-0) remains ACC, where No. 7 Miami (9-0) ef- Saturday. “You learn a lot in
amondbacks last season. His agent, and Baylor, who didn’t have a title undefeated, and is headed to the fectively knocked out Notre Dame games like this that you don’t
Scott Boras, will be seeking a deal game. That decision could now po- Big Ten title game, where Ohio (8-2) from playoff contention with when you win 49-0. There are still
in the range of $200 million. tentially backfire. State (8-2) likely awaits. The a 41-8 win. The Hurricanes cur- really big games to come.”

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 10s <0 1 2 3 4 5 6 7 8 9 10 11 12 13 Down 27 Maureen of
0s 1 Beverage cart “The Quiet Man”
Vancouver
Vancouver Calgary 20s 14 15 16
containers 28 Source of spirits
30s 10s
ip
Winnipeg 17 18 19
Seattle 20s 2 Lotion additive 30 Fresh
Portla d
Portland 30s 40s Montreal 30s 20 21 22 3 City with a 31 Board, as an
50s Ottawa
Helena Bismarckk 40s famous bell airplane
g A g t
Augusta 23 24 25
g
Eugene 40s i
Boise
Billings tower
Mpls./St.
p / . Paul
pls Pa T t
Toronto A b y
bany
Albany Boston 50s 32 Visionaries
26 27 28 29 30 31 32 4 Cassoulet
30s rtford
Hartford 60s 37 Workers who are
50s oux FFalls
Pierre Sioux ll
Milwaukee k Detroit
t l
Buffalo cookers
Cleve
Cl l d
Cleveland New
ew York
Y k 70s 33 34 35 shirkers
Reno Ch
Chic
Chicagog
Salt LLake
ake City es Moines
Des 40s 5 Lurk in the
Cheyenne Omaha h P hil d lph
h
Philadelphia 80s
Sacramento Indianapolis Pittsburgh g 36 37 38 39
shadows 38 Gene messenger
50s Denver p
Springfieldd
h g on D.C.
Washington DC 90s
San
an Francisco 60s 50s Topeka Kansas Ch
Charles
l t
Charleston 40 41 42 6 Shortly, 39 Neighbor of
C
Colorad
l d
Colorado City h
Richmond d 100+
70s
Las
L Springs
p g hit
Wichita St.. Louis
LLou LLouisville
Lou ill informally Nigeria
Vegas
Ve i h
Raleigh 43 44 45 46
anta Fe
Santa 50s Nashville
h ill 41 “Go away!”
Los A
Angeles
Angel 60s Chh
Charlotte 7 Mal de ___
70s Memphis hi 60s 47 48 49
80s Phoenix
Ph A b q q
Albuquerque Oklahoma
homa
ma C
City C b
Columbia
Warm Rain (passenger’s 42 “Be prepared” or
San Diego Little Rock Atlanta
Atl t
Tuc
Tucson i
Birminghamh 50 51 52 53 54 55 queasy feeling) “Live free or die”
El P
Paso Dallas
D ll Jack
Jackson
h
Ft. Worth Cold
70s T-storms 8 Misbehaving 44 Landlords’
Mobile
bil Jacksonville
k 56 57 58 59
A ti
Austin 9 “Just do it” or documents
70s Houston
t Stationary Snow
20s ew Orleans
New d
Orlando 60 61 62 “Got milk?” 45 Was inclined
10s 80s n Antonio
San A t i Tampa 80s
Anchorage
A h g Honolulu
l l 80s Miami
Showers Flurries 63 64 65 10 Subway option 49 Tennis great
70s 11 Like most Agassi
30s
40s Ice
PLANE-SPOKEN | By Daniel Hamm commercial 50 Do some
airplanes rubbernecking
U.S. Forecasts City
Today
Hi Lo W
Tomorrow
Hi Lo W City
Today
Hi Lo W
Tomorrow
Hi Lo W
Across 25 Words from 46 Sinister signs
12 “I smell ___!” 51 Lake port of
s...sunny; pc... partly cloudy; c...cloudy; sh...showers; 1 Bottle someone 47 Canada flag
t...t’storms; r...rain; sf...snow flurries; sn...snow; i...ice
Omaha 52 42 pc 59 38 c Frankfurt 47 30 sh 44 34 pc picking up the 13 Novice Pennsylvania
Orlando 82 65 pc 77 60 pc Geneva 44 31 c 42 29 pc toppers feature
Today Tomorrow Philadelphia 50 34 r 52 34 s Havana 83 68 pc 81 68 pc tab 18 Flyer in a V 53 Not doing
City Hi Lo W Hi Lo W 5 “The Lion King” 48 Make ecstatic anything
Phoenix 87 62 pc 87 60 pc Hong Kong 79 73 pc 80 73 s 26 Carbonated formation
Anchorage 26 19 s 27 14 s Pittsburgh 45 34 c 46 29 pc Istanbul 66 56 c 68 55 s hero
quaffs 50 Frozen treat 54 Star of TV’s
Atlanta 66 44 s 63 41 s Portland, Maine 41 30 c 43 27 c Jakarta 90 76 t 89 77 t 10 Without delay, 22 Terminal parts
Austin 78 58 pc 79 58 pc Portland, Ore. 53 45 r 54 45 r Jerusalem 74 53 pc 72 52 pc 29 Small dents in 52 Facing charges “M*A*S*H”
Baltimore 50 35 r 53 31 pc Sacramento 63 47 r 63 45 pc Johannesburg 82 61 pc 82 60 t in the hospital 24 Clever comeback
the airplane? 56 Athena’s warring 55 For fear that
Boise 59 36 r 51 37 pc St. Louis 50 34 pc 59 45 pc London 46 39 pc 52 47 pc 14 Stepped down 26 March 17
Boston 44 36 c 44 35 c Salt Lake City 64 41 pc 57 36 pc Madrid 57 33 pc 62 34 s 33 Belonging to brother 58 Gloss target
Burlington 40 28 c 42 27 c San Francisco 66 53 sh 64 51 pc Manila 89 78 pc 89 78 pc 15 Do a bread- honoree, for
thee 57 Rough drawing short 59 In the style of
Charlotte 63 39 s 59 35 s Santa Fe 64 39 pc 67 37 s Melbourne 88 64 s 89 70 s making chore
Chicago 43 32 s 50 43 pc Seattle 52 45 r 51 43 r Mexico City 71 47 pc 72 47 pc 34 Pod veggies on part of an
Cleveland 45 35 c 47 35 pc Sioux Falls 53 37 pc 55 31 c Milan 54 36 c 52 34 pc 16 Wrong airplane? Previous Puzzle’s Solution
Dallas 70 58 r 78 60 pc Wash., D.C. 51 39 r 54 36 pc Moscow 37 32 pc 42 30 r 35 “Golly!” MA D AM S P A T H G T V
Denver 68 36 s 66 29 pc Mumbai 91 75 pc 90 76 pc 17 Sentries in 60 One might be O P E R A T I D E A R I A
36 Go by worn in a sting
front of the
International Paris 49 35 pc 49 38 pc B R I C K H O U S E R A S P
Detroit 43 31 pc 45 35 pc E E L S N A D I N E
Honolulu 86 73 pc 84 73 sh Rio de Janeiro 82 64 s 81 66 s airplane? 37 No longer little operation MA L A I S E B A R E N T S
Houston 80 58 s 80 58 pc Today Tomorrow Riyadh 82 54 s 86 56 s A D U L T S R E G R E W
Indianapolis 45 32 pc 49 35 pc City Hi Lo W Hi Lo W Rome 59 42 t 61 49 t 19 Deceptive one 39 Refer to 61 1040 mailer H OM E S S A G E S H A H
Kansas City 52 44 pc 56 47 c Amsterdam 50 42 sh 51 46 c San Juan 86 77 sh 87 77 sh E B B O R E C A R T I P O
Las Vegas 77 55 pc 75 54 pc Athens 66 56 t 69 59 t Seoul 58 39 c 52 32 s
20 U.S. Navy nuclear 40 Gallery display 62 Pioneering R E E L E V E N W I S P S
sub class 41 Male deliveries carmaker R E E V E S P I C K L E
Little Rock 61 39 pc 60 47 pc Baghdad 79 52 pc 81 57 s Shanghai 67 54 c 65 52 c S L Y G R I N MO N E Y E D
Los Angeles 75 57 pc 74 57 pc Bangkok 91 76 sh 90 79 pc Singapore 87 77 pc 87 76 t Ransom C O A R S E T A N K
Sydney 71 59 pc 72 59 s
21 Simple adjoining 42 Estate home R A R E W O O L G L O V E S
Miami 84 74 sh 84 70 pc Beijing 55 28 s 45 22 s 63 Piano’s 88
Milwaukee 43 33 s 46 43 pc Berlin 45 32 pc 43 42 pc Taipei 78 72 c 78 70 r shelter 43 Paint jobs at A D D S E L L E E X I L E
P S S T R E D S D O N O T
Minneapolis 44 35 pc 47 31 c Brussels 48 37 c 47 44 c Tokyo 62 57 pc 67 55 r 23 Hand-to-hand the back of the 64 Digger’s tool
Nashville 54 36 pc 58 41 s Buenos Aires 86 63 s 89 68 s Toronto 41 32 c 42 31 pc The contest answer is SETTLERS OF CATAN. The
New Orleans 74 57 s 71 55 s Dubai 89 73 s 90 71 s Vancouver 50 44 r 49 41 r combat? airplane? 65 Orderly first words of the five theme answers (BRICK,
New York City 49 36 r 48 37 pc Dublin 46 44 c 53 44 sh Warsaw 39 32 sh 41 34 pc ORE, WOOL, GRAIN and LUMBER) are five
Solve this puzzle online and discuss it at WSJ.com/Puzzles.
s

Oklahoma City 59 52 c 70 54 pc Edinburgh 45 41 pc 51 37 sh Zurich 42 26 c 41 26 pc resources in the board game.

For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
THE WALL STREET JOURNAL.
A Soviet Cleansing in Cuba
Most Ameri-
cans have
never heard of
the anti-Cas-
tro uprising in
Cuba’s Escam-
AMERICAS bray Moun-
By Mary
tains, which
began in 1959
Anastasia
and took Fidel
O’Grady
and the Soviet
Union six
years to put down. At the
100th anniversary of the Bol-
shevik Revolution, the episode
is worth revisiting. If not for
400 Soviets sent to Cuba un-
der the command of the Red
Army and the KGB in 1961, it is
unlikely that Castro would
have prevailed.
What happened in the Es-
cambray pokes a giant hole in
Castro’s narrative that his rev-
olution was a justified power
grab supported by working-
class and rural Cubans. The
fact is that when Cubans be-
gan to understand that Fidel
planned to replace Fulgencio
Batista as the next dictator
and to impose communism,
many rebelled. None fought
harder than central Cuba’s
guajiros—small land owners
and tenant farmers.
Forty years after Castro
took power, a protégé named
Hugo Chávez was elected pres-
ident of Venezuela and allowed
to consolidate power. Today
that once-rich country is an
authoritarian hellhole where
toilet paper is a luxury and
malnutrition is widespread.
Venezuelans did not see
what was coming in part be-
cause of the failure of histori-
Algorithms With Minds of Their Own
By Curt Levey
And Ryan Hagemann
E
veryone wants to know:
Will artificial intelligence
doom mankind—or save
the world? But this is the
wrong question. In the near fu-
ture, the biggest challenge to
human control and acceptance
of artificial intelligence is the
technology’s complexity and
opacity, not its potential to
turn against us like HAL in
“2001: A Space Odyssey.” This
“black box” problem arises
from the trait that makes arti-
ficial intelligence so powerful:
its ability to learn and improve
from experience without ex-
plicit instructions.
Machines learn through ar-
tificial neural networks that
work like the human brain. As
these networks are presented
with numerous examples of
their desired behavior, they
learn through the modification
of connection strengths, or
“weights,” between the artifi-
cial neurons in the network.
Imagine trying to figure out
why a person made a particu-
lar decision by examining the
connections in his brain. Ex-
amining the weights of a neu-
ral network is only slightly
more illuminating.
Concerns about why a ma-
chine-learning system reaches
a particular decision are great-
est when the stakes are high-
est. For example, risk-assess-
ment models relying on
artificial intelligence are being
used in criminal sentencing and
bail determinations in Wiscon-
sin and other states. Former
Attorney General Eric Holder
My Kingdom for a Renewable Energy Source
By Lee E. Ohanian
And Ted Temzelides
‘I
n 50 years, every street
in London will be buried
under 9 feet of manure.”
With this 1894 prediction, the
London Times warned that the
era’s primary source of trans-
portation energy—the horse—
would soon create an environ-
mental crisis.
In New York City, about
100,000 working horses pro-
duced roughly 2.5 million
pounds of manure a day. Resi-
dents were exposed not only to
the stench but to biohazards
like anthrax. One commentator
estimated in 1908 that roughly
20,000 New Yorkers died each
year from diseases related to
horse waste.
But the deluge of dung pre-
dicted by the Times never ar-
rived. Instead the free market
solved the problem in roughly
25 years, while creating new
goods and industries that
transformed society.
The enormous demand for a
ans, journalists, lawyers, aca-
demics and politicians
throughout the Americas to ex-
pose the atrocities committed
in the 1960s against the gua-
jiros and other dissidents.
Castro understood the im-
portance of controlling the
press, foreign as well as do-
mestic. He used that control
to popularize his version of
events. He framed the resis-
tance—those who rejected his
communist takeover—as a
The Russians used
their experience at
home to annihilate
dissident peasants.
white, urban aristocracy un-
happy because it was losing
its privilege under his new
justice. Meanwhile, he wiped
out whole farming communi-
ties with Stalinesque ruth-
lessness, and he did it with
guidance from the Kremlin,
which exported its experience
in intelligence gathering and
repression.
Agapito Rivera was born in
1937 in central Cuba, one of
seven children in a poor family
that cut sugar cane on a large
estate. He told me in an inter-
view in Miami earlier this year
that when he first started cut-
ting cane he was so small that
his older brother had to throw
the shoots onto the cart for
him. By the time Castro took
power, Mr. Rivera was 22 and
married. That year a daughter
and others worry that such
models disproportionately hurt
racial minorities. Many of these
critics believe the solution is
mandated transparency, up to
and including public disclosure
of these systems’ weights or
computer code.
But such disclosure will not
tell you much, because the ma-
chine’s “thought process” is
not explicitly described in the
weights, computer code or
anywhere else. Instead, it is
subtly encoded in the interplay
between the weights and the
neural network’s architecture.
Transparency sounds nice, but
it’s not necessarily helpful and
may be harmful.
Requiring disclosure of the
inner workings of artificial-in-
telligence models could allow
people to rig the system. It
could also reveal trade secrets
and otherwise harm the com-
petitive advantage of a sys-
tem’s developers. The situation
becomes even more compli-
cated when sensitive or confi-
dential data is involved.
A better solution is to make
artificial intelligence account-
able. The concepts of account-
ability and transparency are
sometimes conflated, but the
former does not involve dis-
closure of a system’s inner
workings. Instead, account-
ability should include explain-
ability, confidence measures,
procedural regularity, and
responsibility.
Explainability ensures that
nontechnical reasons can be
given for why an artificial-in-
telligence model reached a
particular decision. Confidence
measures communicate the
cleaner and more efficient
source of energy led to re-
markable innovations in the
internal combustion engine. By
1920 horses in cities had been
almost entirely replaced by af-
fordable autos and trucks.
What 19th-century
British horses teach
us about free markets.
The revolution was not
driven by government. In fact,
the transition away from
horses would have taken lon-
ger if states had followed to-
day’s policy of subsidizing spe-
cific energy sources.
Since the 1970s, politicians
have artificially pushed re-
sources into renewable en-
ergy. Today the solar industry
employs nearly 400,000
workers. That sounds impres-
sive, but it accounts for only
1% of America’s electricity
production.
OPINION
was born. The young family
lived in a small house Mr. Ri-
vera had built himself.
Many peasants opposed Ba-
tista. When he fled, they cele-
brated. But they quickly recog-
nized Castro’s ambitious plan
to betray the revolution. Ironi-
cally it was the takeover of a
large sugar plantation called
Sierrita that confirmed their
worst suspicions. Sierrita had
been an excellent employer.
The owners paid well and
treated workers with dignity.
Yet it was the first property
seized in the area.
I wondered why Mr. Rivera
had objected, since Castro
was promising “social justice”
for the poor. “I looked at
that,” he said, referring to the
confiscation of Sierrita, “and
I said to myself, if he can do
that to them, what future do
I have?”
Mr. Rivera went into com-
bat with other guajiros and
alongside former Castro guer-
rillas who had fought in the Si-
erra Maestra to restore the
constitutional democracy.
In his 1989 book, “And the
Russians Stayed: The Soviet-
ization of Cuba,” Cuban-born
Nestor Carbonell uses the tes-
timony of a former Castro in-
telligence officer to describe
how the Soviets crushed the
Escambray rebellion, which at
one point numbered 8,000 in-
surgents. Castro had sent
12,000 soldiers and 80,000 mi-
litia to the region in late 1960,
but they’d made no headway.
So in January 1961 the Kremlin
stepped in. It sent a contingent
of Soviet coaches to a military
certainty that a given decision
is accurate. Procedural regu-
larity means the artificial-in-
telligence system’s decision-
making process is applied in
the same manner every time.
And responsibility ensures in-
dividuals have easily accessi-
ble avenues for disputing deci-
sions that adversely affect
them.
How do we ensure
that artificial
intelligence is
accountable?
Requiring accountability
would reassure those affected
by decisions derived from arti-
ficial intelligence while avoid-
ing the potential harms associ-
ated with transparency. It also
decreases the need for compli-
cated regulations spelling out
precisely what details need to
be disclosed.
There already are real-
world examples of successfully
implemented accountability
measures. One of us, Curt
Levey, had experience with
this two decades ago as a sci-
entist at HNC Software. Recog-
nizing the need for better
means to assess reliability, he
developed a patented technol-
ogy providing reasons and
confidence measures for the
decisions made by neural net-
works. The technology was
used to explain decisions made
by the company’s neural net-
work-based product for evalu-
ating credit applications. It
Suppose governments in the
1890s, desperate to replace the
horse, had jumped on the first
available alternative, the steam
engine. Heavy subsidies would
have produced more steam en-
gines and more research on
steam technology. This would
only have waylaid the develop-
ment of the far superior inter-
nal combustion engine.
The lesson is that govern-
ments are in no position to
predict technological break-
throughs, and their attempts
to do so can delay innova-
tions by entrenching inferior
technologies.
Diesel cars are another ex-
ample. European states have
been subsidizing them for de-
cades, but diesel engines cre-
ate considerably more noxious
gases and particulates. Now
Britain and Germany are re-
versing their policies and try-
ing to phase out diesel.
Or take the attempts to push
renewable energy into poor
countries. About 1.3 billion
people, many in sub-Saharan
compound near the city of
Trinidad. That compound be-
came a “KGB redoubt,” Mr.
Carbonell explains. “From
there, the Soviets secretly di-
rected a major offensive to
quash the insurgency.”
The operation mobilized
70,000 Cuban soldiers and
110,000 militia. They “uprooted
most of the peasant families liv-
ing in the area, and dragged
them into concentration camps”
in the far western part of the
country. More than 1,800 pris-
oners were executed, according
to Mr. Carbonell. “The obsessive
goal was total extermination,”
so the government forces “de-
stroyed crops, burned huts and
contaminated springs as they
systematically combed the re-
gion for rebels or suspects.”
The U.S. made secretive at-
tempts to get supplies to the
resistance, but poor coordina-
tion hampered operations.
When President John F. Ken-
nedy withdrew support for
the Bay of Pigs Invasion in
April 1961, the U.S. also aban-
doned the Escambray. The
rebels were outnumbered and
outgunned but they did not
give up easily. It wasn’t until
1965 that they were entirely
defeated.
Mr. Rivera was captured in
1963, spent 25 years in prison,
and was exiled in 1988. And
the story of the Soviet cam-
paign in Cuba to annihilate
farmers and peasants—who
rejected the collectivization of
agriculture just as they had in
Russia—never made it into
popular culture.
Write to O’Grady@wsj.com.
worked so well that FICO
bought the company.
This patented technology
also provides accountability in
FICO’s Falcon Platform, a neu-
ral-network system that de-
tects payment-card fraud. Fi-
nancial institutions and their
customers need to understand
why an incident of fraud is sus-
pected, and the technology met
that challenge, opening the
door for Falcon’s widespread
adoption by the financial in-
dustry. FICO estimates that to-
day Falcon protects approxi-
mately 65% of all credit card
transactions world-wide.
Falcon’s ability to detect
suspicious patterns of behav-
ior has also found use in coun-
terterrorism efforts. Following
the Sept. 11 attacks, the same
neural network technology was
used by airlines to identify
high-risk passengers. That’s a
far cry from Elon Musk’s asser-
tion that artificial intelligence
will cause World War III.
Until recently the success of
systems like Falcon went
underreported. Artificial-intel-
ligence pioneer John McCarthy
noted decades ago, “As soon as
it works, no one calls it AI any-
more.” Further advances in ar-
tificial intelligence promise
many more benefits for man-
kind, but only if society avoids
strangling this burgeoning
technology with burdensome
and unnecessary transparency
regulations.
Mr. Levey is president of the
Committee for Justice. Mr.
Hagemann is director of tech-
nology policy at the Niskanen
Center.
Africa, lack electricity, making
it incredibly difficult to purify
water or preserve food and
medications. World-wide subsi-
dies for renewables total more
than $100 billion a year, ac-
cording to the International
Energy Agency. But scientists
still haven’t solved their core
problem: Peak electricity de-
mand comes early in the morn-
ing and at night, when the sun
isn’t shining and the wind may
not be blowing.
Nearly a half-century of
subsidies has not delivered the
next energy revolution. The
great manure crisis of 1894
suggests a far better way to
advance clean, affordable and
safe energy: open competition
on a level playing field.
Mr. Ohanian is a senior fel-
low at Stanford’s Hoover Insti-
tution and a professor of
economics at UCLA. Mr. Tem-
zelides is a scholar at the
Baker Institute for Public Pol-
icy and a professor of econom-
ics at Rice University.
Monday, November 13, 2017 | A15
BOOKSHELF | By John Steele Gordon
The Heat
Of the Moment
The Burning Time
By Virginia Rounding
(St. Martin’s, 459 pages, $29.99)
I
n the West today we take it for granted that one is free
to hold whatever religious beliefs one thinks are true
and that it’s no one else’s business, especially not the
state’s. But in the early 16th century, religion was very
much the business of the state, and the punishment for
heresy could be the most agonizing imaginable: being
burned at the stake.
As the Protestant Reformation began in 1517 and as
Henry VIII, about a decade later, sought to shed Catherine
of Aragon in order to marry Anne Boleyn, the definition of
heresy began to shift in often unpredictable ways. What
was heresy one week might be orthodoxy the next and vice
versa. Both ordinary citizens and powerful officials were at
risk. Many trimmed their sails as the religious winds
shifted. Others did not and accepted their fates.
Virginia Rounding, the
author of several books on
European history, takes us
through this treacherous epoch
in “The Burning Time.” Some of
the material she presents may
be familiar in its broad outlines,
not least from historical novels
and plays, famous movies, and
popular television shows. But it
is certainly worth our learning
more about the broader context
and grasping in detail the fraught
conditions under which
individuals were forced to make
horrific moral choices.
Henry VIII, Ms. Rounding reminds us, had
been a thoroughly orthodox Roman Catholic. But Catherine of
Aragon could give him no more children, and only a daughter
survived to adulthood. Henry wanted a son. When the pope,
under pressure from Catherine’s nephew, Charles V, the Holy
Roman Emperor, refused an annulment, Henry declared
himself the sole head of the Church in England.
Henry’s lord chancellor, Thomas More, had once
interrogated and condemned men and women suspected of
defying Roman Catholic doctrine by denying the miracle of
transubstantiation (the belief that the bread and wine at
communion turns into the body and blood of Christ). But
he could not accept the deposition of the pope and the
installation of the king as the head of a breakaway church.
On July 6, 1535, Henry had him beheaded for treason. John
Fisher, the bishop of Rochester and one of the most learned
men in England (and once young Henry’s tutor), had been
beheaded several days earlier for the same reason.
What was heresy one week might be orthodoxy
the next, and vice versa. And the punishment
could be the most agonizing imaginable.
As the “new learning” and Protestantism began to creep
into the English realm in the 1520s, Henry tried hard to
thwart it. The Church of England, under Henry, had
separated from Rome but had not embraced the
Reformation’s principal tenets—it retained a strong
Catholic cast. But books in English advancing the cause of
“reform,” including English translations of the Bible, were
smuggled in anyway. Henry eventually permitted the
distribution of the Bible in English and even ordered a copy
to be made available in each parish church. But otherwise
his opposition remained firm, and a steady stream of
Protestants, judged heretical by ecclesiastical courts, were
marched to Smithfield, London’s notorious execution site
for heretics, where they were burned.
Among them was Anne Askew, who made a point of
reading the new English Bible aloud and holding Protestant
views. She was a clever and agile debater and seemed to
delight in sparring with the bishops who questioned her.
She was even put on the rack to make her abjure her
beliefs. When she wouldn’t, she was carried to Smithfield in
a chair, since she could no longer walk. There she burned
alongside a lawyer, a tailor and a former Franciscan friar.
According to one witness, Anne was “smiling throughout
her torment and looking like an angel.”
With the death of Henry in 1547 and the accession of his
9-year-old son, Edward VI, power passed to the new king’s
uncle, the Duke of Somerset, a Protestant. Anne Askew’s
beliefs suddenly became orthodoxy. Indeed, one woman
condemned for heresy in this period said to those who sent
her to the stake: “It is a goodly matter to consider your
ignorance. It was not long ago since you burned Anne
Askew for a piece of bread, and yet came yourselves soon
after to believe and profess the same things for which you
burned her.”
Catherine of Aragon’s daughter, Mary, an ardent
Catholic, came to the throne in 1553, and once again the
tide turned. The Catholic bishops who had been deprived
of their sees and sent to the Tower of London were
released and reinstated. A Catholic was appointed
archbishop of Canterbury, and Protestants were, once
again, sent to the stake, in larger numbers than before
(almost 300 during Mary’s five-year reign). The slaughter
earned the queen the soubriquet of “Bloody Mary” and all
but guaranteed that England, recoiling from such horror,
would be a Protestant nation once her half-sister,
Elizabeth I, came to the throne.
Running throughout Ms. Rounding’s account is the
fascinating tale of Richard Rich, a now-obscure figure but
in his time a man to be reckoned with. Tudor politics was a
game often played for mortal stakes. Rich was so adept at
it that he rose from a minor merchant family to become
lord chancellor, not to mention an immensely wealthy man.
Unlike many others, he died in bed of old age. To get that
far, he had to betray more than one person who had helped
him up the ladder. His perjury would put the heads of both
Thomas More and Thomas Cromwell, Henry’s chief minister
in the 1530s, on the block.
The contrast between Rich’s self-serving strategies and
the quiet courage of those who died horrible deaths for
their beliefs adds greatly to the power of Ms. Rounding’s
disturbing and often painful story. The sheer number of
victims in “The Burning Time” can make it difficult at
times to follow the broader dramatic arc. Still, Ms.
Rounding vividly conveys how the blood of the martyred
dead became the predicate for the religious liberty we
now enjoy.
Mr. Gordon is the author of “An Empire of Wealth:
The Epic History of American Economic Power.”
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
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A16 | Monday, November 13, 2017 THE WALL STREET JOURNAL.

OPINION
REVIEW & OUTLOOK LETTERS TO THE EDITOR

ObamaCare Tax Relief Small Businesses Deserve Fair Share of Cuts

R
epublicans in Congress are plowing it, you don’t have to pay a penalty. There “In Tax Bill, How You Get Rich ate a lot of jobs in America beyond
ahead on tax reform, and one obstacle would be no changes to benefits or coverage Matters” (page one, Nov. 4) quotes their own paycheck), but I would like
Rep. Chris Collins (R., N.Y.) stating to see our government’s new tax plan
is the complexity of Senate budget for pre-existing conditions, and not a dollar
that the tax bill is intended to lower be as generous to small businesses as
rules that limit how much taken out of Medicaid, a the rate for companies making wid- they plan to be with large multina-
taxes can be cut. The good Killing the individual word that would appear no- gets and employing other people, not tional corporations.
news is that for once Wash- where in the bill. for doctors, lawyers or architects. MARK W. BALLES, M.D.
ington’s fiscal fictions could
mandate can serve Note that the mandate is a As a retina surgeon, I don’t make Portland, Maine
be deployed to improve pol- the cause of tax and tax on the poor. More than widgets, but I do employ other peo-
icy by repealing ObamaCare’s one in three households that ple—lots of other people. In fact, In “House GOP Readies for Tax
individual mandate as part of
health-care reform. paid the “individual shared most doctors do. Over 60% of doctors Battle” (page one, Nov. 3), I note with
tax reform. responsibility payment” in are entrepreneurs in private practice. personal interest that the proposed
The Senate Finance Com- 2015 earned less than $25,000 The income doctors receive mainly plan eliminates the medical deduc-
mittee on Thursday released the details of its and more than 90% made less than $75,000, ac- goes to pay their staff and other ex- tion. Loss of that deduction will be
penses. I provide jobs for 10 full- more than a political land mine for
tax proposal, which includes a permanent 20% cording to IRS data. For instance: More than
time-equivalent nurses, technicians, the elderly in nursing care; it will be
corporate rate and more. Senators Pat Toomey 34,000 families in Maine paid $15 million to personal managers, billers, coders, re- a financial disaster. I prepare tax re-
and Bob Corker cut a budget deal to allow for the government for the high privilege of not ceptionists, bookkeepers, IT special- turns for some very elderly individu-
$1.5 trillion in net tax cuts over 10 years with- buying ObamaCare. Repeal would be tax relief ists, accountants and attorneys. With- als, many of whom are widows in
out accounting for faster economic growth (and for low-income families. out this army of trained assistants, it full-time nursing care. Their medical
more revenues) as a result of reform. Republicans can use the money or lose it. would be impossible to care for pa- costs are greater than their incomes,
The trick is Senate procedure. The GOP is We’re told the Trump Administration has tients or deal with the burgeoning and every year their savings take a
invoking a budget process that allows the drafted language that would expand the man- bureaucracy of insurance and govern- hit to pay for their care. Under the
party to pass the bill with 51 votes. But Repub- date’s “hardship exemption” that frees more mental regulations governing the pro- proposed plan, these people will end
licans have to comply with the Senate’s Byrd people from the penalty. CBO may also revise vision of health-care services. up on Medicaid sooner.
I can’t speak for the attorneys or DALE TATUM
Rule, which says the legislation can’t add to its methods and thus its cost estimate in the
architects (who I imagine also gener- Palo Alto, Calif.
the deficit beyond the 10-year budget window coming months. In other words, why would
starting in 2028. The Senate draft doesn’t Congress pass up this one-time-only offer of
meet this standard, so some parts of the bill free money for tax reform?
may have to expire after a decade unless Re- Another dividend is that health-care reform The NFL Faces Many Issues, Some Systemic
publicans can fill the hole. It’s a shame this may be easier in the future when CBO can’t ter- The answer to Jason Whitlock’s the Ray Rice debacle, deflategate or
process pummels good policy. rify the public with fanciful estimates of how question, “Is Roger Goodell Deliber- now the disrespect players have
Enter the idea of repealing ObamaCare’s in- many Americans would lose coverage without ately Pushing the NFL Leftward?” shown for our national anthem and
dividual mandate. The Congressional Budget the mandate. CBO has a lousy record of predic- (op-ed, Nov. 6),k is yes. Whether Mr. the American flag, Mr. Goodell has
Office predicts that dumping the mandate tions—ObamaCare enrollment is 60% below its Goodell has an overarching liberal shown exceedingly poor judgment.
would “save” $338 billion over 10 years—and estimate—but the media treat the place as if agenda is debatable, but there is no The league is suffering at the hands
doubt that many in the media who of 32 owners who keep him in office.
the savings continue in the following decades. it were run by oracles.
suddenly are huge fans of NFL play- They seem to be unaware that at
The budget gnomes assume that if people are Democrats will call repeal a budget gimmick, ers exercising their free-speech least 100 competent CEOs would rel-
not forced to buy health insurance, fewer peo- and they would know: The Affordable Care Act rights have ideological skin in a ish the job at a fraction of the cur-
ple will sign up for subsidies or Medicaid. The included a long-term care program that was game that they otherwise detest. rent salary and do it much better.
idea that millions of people will dump free written to collect premiums and then go bank- The secular trends of cable cord- JAY LEHR
health care is one oddity of CBO methods, but rupt to game the 10-year budget window, and cutting and less television viewing, Ostrander, Ohio
that’s an editorial for another day. it counted a federal student-loan takeover as combined with NFL overexposure, ex-
Some Republicans are traumatized from a money-maker for Treasury. All of this was fic- plain the drop in ratings with any I was at the bar at a rural country
the GOP’s health-care failure and don’t want tion. But repealing the individual mandate is short-term negative reaction to club in western Pennsylvania. The at-
to complicate tax reform with fights over in- not a ploy; it’s a GOP priority. player protests being an insignificant titude there is that if the NFL
surance coverage. But remember that Chief Senate Finance this week will mark up its factor. doesn’t understand and respect the
TOM GARDNER founding principles of our country,
Justice John Roberts called the mandate pen- bill, and the best move for tax and health-care
Richmond, Va. then who needs it? The NFL is free
alty a tax. This is a political fight the GOP can reform is to include the mandate repeal. This to do and say whatever it wishes.
win: If you like your ObamaCare plan, you can is a case where budget scoring can serve the No doubt I am not alone in won- But don’t expect us to follow or sup-
keep it. If you don’t want it or can’t afford cause of good policy. dering why the NFL owners would port it.
want to continue to pay their com- R.I.P. NFL.

A Nafta Recession? missioner, Roger Goodell, in excess

of $30 million a year. Whether it’s
RICHARD J. KRAULAND
Pittsburgh

P
resident Trump keeps touting the 3% damage that would ensue to North American
U.S. GDP growth of the last two quarters and even global supply chains.
and “record” stock prices, and the econ- Only one in four of the economists antici- U.S. Must Be Realistic About Mideast Power
omy is his best talking point. pates a U.S. withdrawal, but Suzanne Maloney and Michael ment. The U.S. and its allies, they
But he might want to take a The biggest threat to that also may be optimistic. O’Hanlon’s “A Strategy for the Post- say, should now “work around”
look at the latest Journal sur- the Trump economy Mr. Trump almost pulled out ISIS Middle East” (op-ed, Nov. 8) Syria’s Assad government on a strat-
vey of economists about the once, and he seems to believe seems naive. They write as if the U.S. egy of “regionalism,” as if Russia and
impact of a U.S. withdrawal is his trade agenda. that Mexico and Canada have were still the central strategic player Iran would cooperate. They suggest
from the North American Free no choice but to bend to U.S. in the region, which it is not. Their “a new, multilateral Marshall Plan”
Trade Agreement. wishes. But those two coun- recommendations assume, wrongly, for the Middle East (anchored in Jor-
Not a single economist said that the with- tries are already moving to diversify their trad- that Washington has wide latitude dan), estimating the cost to U.S. tax-
drawal Mr. Trump has threatened would help ing options, and they have their own domestic and independent options. Iran is payers as “perhaps as much as a few
the economy. Some 82% said the economy political pressures not to cave to the U.S. mentioned only as a power to be de- billion dollars annually.” This under-
terred or limited rather than a per- estimate is mind-boggling. Rebuild-
would grow more slowly for the next two years Mr. Trump is doing well overall on economic
manent force to be reckoned with ing Syria, let alone the Middle East,
than it would otherwise, and 7% predicted a re- policy, with deregulation and support for tax re- across the Arab world. will cost tens of billions of dollars
cession. That underestimates the risks of reces- form. But his Achilles’ heel is his protectionist Worst is that Russia isn’t men- over an extended period.
sion in our view, given the political shock from trade agenda and his lack of knowledge about tioned at all, even with regard to The one saving grace is that Mos-
such a reckless act by a U.S. President and the the international economy. Syria’s future. Yet it was Russian cow and Tehran will have to pony up
military intervention along with for their military success.

Putin’s Syria Play

Iran’s that saved the Assad govern- EM. PROF. RONALD TIERSKY
Amherst College
Queens, N.Y.

T
he press corps spent the weekend ob- area has been significantly reduced, and thou- What Were Their Survival
sessing about what Donald Trump sands of Syrian families have returned to Odds? I’m Here Anyway Science Can Raise Moral
thinks about what Vladimir Putin be- their homes.” The U.S., Russia and Jordan
David Stras’s “My Grandparents
lieves about Russian meddling have now signed a Memoran- Saw Light, Even After the Dark of
Issues but Not Answer Them
in the U.S. election. #ever- Trump and Tillerson dum of Principles that calls Kristallnacht” (op-ed, Nov. 9) seems While I cannot disagree with the
greentweets. The real news is are ceding the advantage for the “reduction and ulti- very familiar to me as my father was statement that “good science should
Mr. Trump’s deal announced mate elimination of foreign deported to Auschwitz, too. The rule U.S. climate policy” (Letters,
in Vietnam with the Russian to Russia and Iran. forces” in Syria, especially in number tattooed on his arm was Nov. 8), that is not necessarily the is-
strongman for the “deconflic- the south. But there’s no evi- 115172, only 1,850 prisoners before sue we need to address. You can ac-
tion” of Syria. This is ceding dence that Iran or Hezbollah Mr. Stras’s number. I figure that puts cept 100% of the “scientific consen-
the regional advantage to Russia and Iran. are leaving the area. Mr. Stras’s grandfather in the fourth sus” on global warming and still
That’s the take-away of the joint statement The Trump Administration is also hoping transport that arrived in Auschwitz disagree on what actions to take.
after my father’s (on April 13, 1943), Does science require that we subsi-
issued Saturday by the U.S. and Russia that Mr. Putin will help broker a United Nations-su-
or just before April 22, 1943. The Na- dize wind and solar power? Does sci-
“builds on months of fairly intense discussions” pervised peace process pursuant to U.N. Secu- zis were selecting only about 250 to ence require that we restrict develop-
and “behind-the-scenes diplomacy,” according rity Council Resolution 2254 that passed in De- 500 men, from each 3,000 person ment in flood-prone coastal areas?
to State Department officials. The three-part cember 2015. The Russians have since transport, to work in Auschwitz and Does science require that we should
strategy aims to achieve an “enduring defeat” convened separate meetings with the Iranians the various satellite camps. My fa- pursue carbon sequestration?
of Islamic State, “de-escalate the civil war” and and Turks to carve up the country as they see ther, an electrician, was sent to Buna We have to recognize that science
hold “U.N.-supervised and organized parlia- fit, which the Trump Administration has legiti- (i.e., IG Farben’s Monowitz Buna- is essentially amoral. Science didn’t
mentary and presidential elections.” mized by sending an official observer to wit- Werke factory), where Elie Wiesel determine whether the atomic bomb
ISIS is nearly ousted from its caliphate, not ness the talks. worked. My mother was also de- was a good or bad idea. Science says
that the Russians helped much. The dirty work State officials explained Saturday that they ported to Auschwitz (actually Birke- nothing about whether we should
was done by Arab and Kurdish fighters backed “started to see signs that the Russians and the nau). Her number was 76864. My pursue genetic engineering of human
parents never explained their num- embryos. All of these are political and
by U.S. air power and special forces on the regime wanted to draw the political process
bers to me, but I noticed that most moral questions about which people
ground. As Secretary of Defense Jim Mattis told away from Geneva,” and so “Secretary Tillerson of their friends in my Brooklyn can honestly disagree.
NATO in Brussels last week, 95% of the territory felt it was quite important to get President Pu- neighborhood also had numbers on JAMES B. WADDELL
that Islamic State held in Iraq and Syria has tin on the record” to support the U.N.-led pro- their arms, and that they spoke a va- Columbus, Ohio
now been reclaimed. cess. As if the Russian’s words are his bond. If riety of languages.
The question is what comes next. In July six years of fighting in Syria have taught any- My father was one of 68,000 Se-
President Trump agreed with the Russians to thing, it’s that military facts on the ground will phardic Jews who were deported to Pepper ...
enforce a deconfliction zone in southwestern determine the parameters of any peace. Auschwitz from Thessaloniki, Greece.
Syria near the Israeli and Jordanian borders. President Trump, meanwhile, tweeted that Only about 1,500 survived, so his
And Salt
The point was to stop the fighting, address the the United States needs “a good relationship chance of survival was about 2.2%. THE WALL STREET JOURNAL

humanitarian crisis, and allow U.S.-backed with Russia” to solve crises like Syria, despite My mother was one of 1,000 deport-
ees from Kastoria, Greece. Only 35
forces to crush the Islamic State in the north zero evidence Mr. Putin shares America’s stra-
survived. Her chance of survival was
and eastern parts of Syria. tegic interests. The Russians, like the Iranians, 3.5%. The probability that both of
Instead, the cease-fire solidified the gains want to prop up the Assad regime and establish these two people would survive, ulti-
that Bashar Assad’s Syrian government forces military bases in Syria to threaten NATO and mately to have a child, is 0.08%. This
had already made in western Syria. And it freed Israel. Their immediate near-term goal is to re- is equivalent to surviving four rounds
up the Russians and Iranian-backed fighters to take the energy-rich eastern regions of Syria of Russian roulette, each played with
divert resources eastward, where the Syrian from the Syrian Democratic Forces because five bullets in the revolver.
Democratic Forces allied with the U.S. had made they realize that “seizing the oil,” to borrow a SAM MIRANDA
progress against Islamic State. The Institute for phrase, is in their interests. Silver Spring, Md.
the Study of War’s Christopher Kozak noted Sat- The big picture is that Mr. Trump and Secre-
urday that the compact also “has preserved— tary of State Rex Tillerson seem to be using the Letters intended for publication should
rather than limited—the freedom of movement diplomacy of deconfliction to justify a retreat be addressed to: The Editor, 1211 Avenue
of the Americas, New York, NY 10036,
of Iran and Hezbollah along the Golan Heights from post-ISIS Syria. Where that leaves Amer- or emailed to wsj.ltrs@wsj.com. Please
and Syrian-Jordanian border.” ica’s Kurdish and Syrian allies isn’t clear, include your city and state. All letters
Yet the U.S. State Department claims the though perhaps they’re on their own. Mr. Putin are subject to editing, and unpublished
deconfliction experiment, “while not perfect,” is winning in Syria no matter his deceptions letters can be neither acknowledged nor “In time you will come to see that
returned. football is ballet with taco chips.”
has been a success because “violence in the about election meddling.
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
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THE WALL STREET JOURNAL.
Hillary Clinton, the DNC and the Law
By Cleta Mitchell
And Hans von Spakovsky
D
onna Brazile has con-
firmed Bernie Sanders’s
worst suspicions. Ms. Bra-
zile, who served as interim
chairman of the Demo-
cratic National Committee during the
fall 2016 campaign, says in a new
book that during the primaries, the
DNC was controlled by Hillary Clin-
ton’s campaign. Ms. Brazile claims
the arrangement was “not illegal,”
but that is far from clear.
Ms. Brazile reports that when she
arrived on the job in July 2016, Gary
Gensler, the campaign’s chief finan-
cial officer, told her the DNC was
fully under the control of the cam-
paign. In September 2015, 10 months
before Mrs. Clinton’s nomination,
the party had moved its bank ac-
count to the same bank in New York
used by the Clinton campaign and
created a joint fundraising commit-
tee, the Hillary Victory Fund, whose
treasurer, bank account, and control
were vested in the campaign.
Did their arrangement
violate legal limits on
coordination between
a candidate and a party?
Then, in an August 2015 memo-
randum of understanding, the DNC
essentially handed over its opera-
tions to the Clinton campaign for
the next 15 months.
The purpose of joint fundraising
committees is to allow more than
one entity to collaborate in raising
money and share in the costs. Each
participant is subject to federal con-
tribution limits. When the party itself
is a participant, its committee (in
this case the DNC) normally handles
accounting and financial controls.
Not here. The Hillary Victory Fund
The Individual Mandate Is The Worst Tax Ever
By Chris Pope
I
f you were deliberately trying to
design the most arbitrary, pain-
ful and pointless tax possible,
how would you go about it?
First, you would structure it to in-
flate the cost of an essential product.
Then, you’d create exemptions so
vast that only 5% of taxpayers were
subject to it. You might even ensure
that it hit people only when they
were particularly vulnerable—like
when they’d lost a job. Finally, you
would use it to drive enrollment in
entitlements, so that it increased the
federal deficit by $338 billion.
In short, you would design some-
thing that looks very much like the
Affordable Care Act’s individual
mandate.
Sen. Tom Cotton (R., Ark.) has
made headlines by suggesting that
tax reform should include a repeal of
the mandate—an annual tax of be-
tween $695 and $13,380 imposed on
6.5 million American households. In
defense of the mandate, ObamaCare’s
defenders have resorted to hyperbole
and scare-mongering, probably be-
cause the penalty is so difficult to
justify on the merits.
In most insurance markets, people
seek coverage in proportion to the
risk they expect to face, and insurers
receive payment in proportion to the
cost they expect to cover. This ap-
proach prevailed for nongroup
health insurance in most states prior
to ObamaCare. It produced stable
markets with premiums of less than
half what currently prevails on the
exchanges, but often failed to ensure
affordable coverage for individuals
with major chronic conditions.
The ACA has reversed this situa-
tion, providing affordable coverage
to individuals with pre-existing con-
ditions, but yielding plans that are
priced well above the needs of most
Americans. The average annual pre-
mium was $5,712 in 2016, while me-
dian health-care spending was only
$709 in 2014.
PUBLISHED SINCE 1889 BY DOW JONES & COMPANY
Rupert Murdoch
Executive Chairman, News Corp
Gerard Baker
Editor in Chief
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Deputy Editor in Chief
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EDITORIAL AND CORPORATE HEADQUARTERS:
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Telephone 1-800-DOWJONES
Hillary Clinton speaks to the DNC summer meeting, Aug. 28, 2015.
was controlled by the Clinton cam-
paign, with a campaign employee as
treasurer and the fund’s bank ac-
count established at the Clinton cam-
paign’s bank. According to Federal
Election Commission reports, the Hil-
lary Victory Fund has raised more
than $526 million.
The DNC asserted its “neutrality”
by also entering into a joint fund-
raising committee with the Sanders
campaign. It raised a total of
$1,000. And the Bernie Victory
Committee treasurer was the DNC’s
designee.
“Money in the battleground
states usually stayed in that state,”
Ms. Brazile writes, “but all the other
states funneled that money directly
to the DNC, which quickly trans-
ferred the money to Brooklyn”—i.e.,
Clinton headquarters. She says state
parties raised $82 million, of which
they kept less than 0.5%.
The memorandum of understand-
ing promised the Clinton campaign,
among other things, “complete and
seamless access to all research work
The individual mandate was in-
tended to prevent the bulk of indi-
viduals from fleeing this unappeal-
ing arrangement. Its advocates have
argued that the mandate reduces
premiums on the exchanges, but this
is only true to the extent that it
pushes more cost-effective alterna-
tives out of reach.
It doesn’t even further the
ACA’s core goal of helping
people with pre-existing
conditions get coverage.
As a newly released Manhattan
Institute Issue Brief demonstrates,
the mandate is superfluous to the
ACA’s core guarantee of affordable
coverage for individuals with pre-ex-
isting conditions. In fact, it is sub-
ject to so many exemptions that re-
cent studies have failed to discern
any impact of the mandate on the
proportion of Americans who are
uninsured.
The ACA’s guarantee of afford-
able insurance to low-income indi-
viduals and those with pre-existing
Football Needs Some Real Drama
By Lou Weiss
T
he National Football League
has lately been a cause of
rancor and division. Most
blame the anthem protests and
concussions, but the elaborate cho-
reography, mimes, games and skits
displayed after every touchdown,
sack, interception and fumble may
also have something to do with it.
The NFL apparently feels that this
goofiness makes good television
and has given the players latitude.
Why not go all the way and have
the referees award style points for
Robert Thomson
Chief Executive Officer, News Corp
William Lewis
Chief Executive Officer and Publisher
DOW JONES MANAGEMENT:
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OPERATING EXECUTIVES:
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Jonathan Wright, International
DJ Media Group:
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Kenneth Breen, Commercial
Professional Information Business:
Christopher Lloyd, Head;
Ingrid Verschuren, Deputy Head
Monday, November 13, 2017 | A17
OPINION
could not legally be withheld by the
Clinton-designated treasurer. Nor
does the law allow a single candi-
date to control a political party’s op-
erations and expenditures.
National party committees have
higher contribution limits than can-
didates do—$334,000 a year vs.
$2,700 for each election. The memo-
randum raises the possibility that
Clinton campaign took advantage of
the DNC’s higher limits, then availed
itself of all the resources the DNC
could buy—without having any of
the attendant costs or expenditures
assessed against the campaign.
ADAM BETTCHER/GETTY IMAGES
There are strict statutory limits
on what a party committee can con-
tribute to any candidate and what a
party can spend in coordination
with its candidates. We don’t like
limits on the ability of parties to
support their candidates. But cam-
paign-finance zealots, egged on by
media outlets (which are not sub-
ject to any limits), made certain
product and tools” paid for by the that the McCain-Feingold law of
DNC, despite Federal Election Com- 2002 stringently limited coordina-
mission regulations that prohibit tion between candidates and politi-
privately sharing such research with cal parties. Although the Supreme
a candidate without either reporting Court struck down parts of McCain-
the costs as an in-kind contribution Feingold in the 2010 Citizens United
or allocating them against the case, the coordination limits still
party’s coordinated spending limits apply. The FEC and the Justice De-
for that candidate. partment should investigate the
The memo also tied transfers of Clinton-DNC arrangement.
funds raised for the DNC by the Hil- Candidate Clinton railed against
lary Victory Fund to operational Citizens United—a case that involved
control of the DNC’s expenditures: a documentary film critical of her—
“The release of the Base Amounts arguing that “big money” and “se-
each month are conditioned on the cret spending” are ruining our poli-
following: . . . hiring of DNC Com- tics. Is it too much to ask that those
munications Director . . . DNC senior who loudly demand greater regula-
staff . . . joint authority over strate- tion of political speech and spending
gic decisions . . . alerting HFA”—Hil- themselves abide by the laws al-
lary for America, the campaign—“in ready on the books?
advance of . . . any direct mail com-
munications that features a particu- Ms. Mitchell is a partner at Foley
lar Democratic primary candidate or & Lardner LLP who practices federal
his or her signature.” campaign finance law. Mr. von Spa-
Contributions to the DNC, even kovsky is a senior legal fellow at the
though made through the Hillary Heritage Foundation and a former
Victory Fund, were required by law commissioner on the Federal Elec-
to be transferred to the party and tion Commission.
conditions is due entirely to the he said, “we could try that to solve
law’s subsidy provisions. These ex- homelessness by mandating every-
pand automatically to whatever body buy a house.”
level insurers need in order to Without the mandate, the cost of
bring a plan to market, which limits supporting those with pre-existing
premiums and out-of-pocket costs conditions would be spread more
as a share of income. This principle broadly, including the bulk of upper-
holds regardless of the ratio of income individuals who receive em-
healthy to sick enrollees in the ex- ployer-sponsored coverage.
change. Of the 18 million people enrolled
For all the rhetoric about “shared in the individual market, only two
responsibility,” the ACA deliberately million are estimated to have major
carved the healthiest upper-middle- pre-existing conditions. Repeal of
class individuals out of the exchange the mandate would allow the bulk of
risk pools by giving adults under 26 them to choose soon-to-be deregu-
the right to claim health-care bene- lated insurance at half the cost of
fits through their parents’ insurance ACA-compliant plans. As 70% of in-
coverage. dividual-market enrollees would re-
The main effect of the mandate main eligible for subsidies, they
has been to concentrate the burden would not be adversely affected.
of subsidizing the chronically ill on Only a tiny subset of Americans
those who lack employer-sponsored would be likely to see any increase
health insurance or eligibility for in premiums from the repeal of the
public entitlements. This is a very individual mandate—and CBO has
low-income group: 79% of house- estimated this increase would only
holds that had to pay the mandate amount to 10%.
tax (which starts at $695 per year The individual mandate is not es-
for individuals earning more than sential to the ACA’s coverage expan-
$10,350) had annual incomes of less sions. It serves only to accentuate
than $50,000. It’s no wonder that the law’s inequities.
Barack Obama opposed this funding
mechanism during the 2008 prima- Mr. Pope is a senior fellow at the
ries. “If a mandate was the solution,” Manhattan Institute.
especially creative displays? throwing down the Ten Command-
The standard game of dice ments in the world’s first recorded
might not be worth an extra point, spike.
but a more sophisticated thespian Want to involve the kids? Odell
Beckham Jr.’s fake naps could be-
come an homage to “Goodnight
Antonio Brown posing Moon.” That urinating shtick he
does might reference Clifford the
with the football like Big Red Dog. One point each.
Hamlet holding Yorick’s Historical events related to the
team’s hometown would work.
skull? Two points. Think of the Patriots doing the
Boston Tea Party, the 49ers making
tech elevator pitches, or the
adventure could be. Antonio Brown Browns re-enacting the burning of
posing with the football like Ham- the Cuyahoga River.
let holding Yorick’s skull? Two We all know the Statue of Liberty
points. A trio of offensive linemen play. How about Le’Veon Bell posing
emulating Macbeth’s witches stir- as Rodin’s Thinker? Two points.
ring their cauldron ought to be The theatrical celebrations
worth a field goal. Who wouldn’t would attract a whole new breed of
buy a ticket to watch dreadlocked sideline coach. Teams would hire
Marshawn Lynch as Lady Macbeth Frenchmen in whiteface to school
washing the blood off of her hands running backs in pantomime. Many
after the killing of Duncan? Out wide receivers are already accom-
damn spot! plished actors feigning interference
Dez Bryant, meet Desdemona. to draw penalties. Rex Reed would
Modern idioms would work just join Terry Bradshaw and Jimmy
as well. Imagine T.J. Watt as Stan- Johnson for postgame recaps.
ley Kowalski, dropping to his knees And imagine the Monday morning
after a sack and yowling, “Flacco!” water-cooler conversations. “Hey,
One point. During kickoffs the did you see Aaron Rodgers’s inter-
Packers could stage “The Icemen pretation of Ibsen last night?”
Cometh.” Picture Tom Brady and “I preferred Dak Prescott’s take
Rob Gronkowski in an end-zone in- last year.”
terpretation of “Waiting for Good- These creative displays would be
ell.” Four points. the perfect melding of sport and
The more points at stake, the culture. Stanislavsky—isn’t he a
more creative the players would linebacker for the Bears?
get. Bible stories offer a rich source
of material: the parting of the Red Mr. Weiss is a Pittsburgh carpet
Sea, the Plagues of Egypt, or Moses salesman.
Riyadh Is
Delivering on
Vision 2030
By Majid Al Qasabi
W
Riyadh, Saudi Arabia
hen Crown Prince Moham-
med bin Salman launched
Vision 2030, Saudi Arabia’s
progressive reform program, last
year, the international community
responded with cautious encourage-
ment. Few disputed the necessity
for reform or thought it failed the
test of ambition. But there were
doubts about Saudi Arabia’s ability
to deliver.
Some openly said Saudi Arabia
would not be able to take the pain-
ful decisions and implement the dif-
ficult trade-offs needed to push
through such dramatic change and
transformation. The implication was
that the old system and traditions
would stymie any attempt to mod-
ernize our economy and society to
the level we ourselves set.
The anticorruption
actions will help make
Saudi Arabia a vibrant
21st-century economy.
While we knew differently, we
understood the doubters. Saudi Ara-
bia is a rich nation, blessed by the
discovery of oil more than 80 years
ago. Yet our wealth has not trans-
ferred into opportunity for all.
Those seeking to do business in our
country have not faced a predict-
able business environment, a famil-
iar commercial legal framework, or
a dynamic, entrepreneurial culture.
Corrupt practices complicated mat-
ters further.
The Supreme Anti-Corruption
Committee’s recent enforcement ac-
tions should encourage those who
doubted Saudi Arabia’s commitment
and ability to deliver the goals of
Vision 2030 at the pace our eco-
nomic and demographic realities
demand. Yet we have also seen
some misguided theories about
what motivated our country to take
these steps, which the overwhelm-
ing majority of Saudi citizens have
embraced.
The investigations, which have
been in progress for three years,
have shown that more than $100
billion has been misappropriated
through systematic corruption and
embezzlement over several decades.
That may prove to be a conservative
estimate. Moreover, the decision to
undertake this investigation and to
act on its findings, regardless of
who was found to be corrupt, was
taken at the start of the investiga-
tion, not at its conclusion.
As outlined in the statement by
Attorney General Saud Al Mojeb, so
far 208 individuals have been ar-
rested, with seven subsequently re-
leased without charge. All those de-
tained have had their rights
respected and will be afforded due
process. They are being handled
sensitively and responsibly.
Given the magnitude of the alle-
gations, we have suspended the per-
sonal bank accounts of those
charged. But we have taken steps to
ensure that the companies they own
continue to operate normally, and
investors will remain unaffected by
these actions. Normal commercial
activity continues.
As we diversify our economy be-
yond oil, we are looking to invest in
our people and invest our assets so
that we can support this process of
change. Opportunity must become
available to all in the kingdom.
Our young people, men and
women, deserve and demand to
live in a nation truly built for the
21st century. This is not about
Saudi Arabia catching up; this is
about Saudi Arabia shifting to the
forefront of development, in part-
nership and collaboration with the
international community of na-
tions, investors and people. For too
long Saudi Arabia has been behind
the curve. Now we are determined
not just to catch up, but move
ahead of it.
This is a watershed moment. The
old ways have ceased to be sustain-
able long ago and must be replaced.
The new way will offer a predictable
long-term approach and transparent
business environment for investors,
who will be surprised by the bur-
geoning talent and potential of our
young people. There is no going
back.
Saudi Arabia is changing. The
message is clear and the goals are
defined. We are serious, and we are
committed to this process, in letter
and spirit. We will not avoid the dif-
ficult short-term decisions if they
mean delivering the essential long-
term goals of a thriving economy, a
vibrant society and a responsible
nation.
Mr. Qasabi is the Saudi minister
of commerce and investment.
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
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A18 | Monday, November 13, 2017 THE WALL STREET JOURNAL.

I CAN FIND
A BAD APPLE
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SECONDS.
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IBM and its logo and ibm.com are trademarks of International Business Machines Corp., registered in many jurisdictions worldwide. See current list at ibm.com/trademark. Other product and service names might be trademarks of IBM or other companies. Statements regarding IBM’s future direction and intent are subject to change or withdrawal without notice. ©International Business Machines Corp. 2017.
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
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BUSINESS & FINANCE
© 2017 Dow Jones & Company. All Rights Reserved.
Last Week: S&P 2582.30 g 0.21%
Brookfield Bids for Rest of GGP
BY DANA MATTIOLI
Brookfield Property Part-
ners LP has made a $14.8 bil-
lion offer to acquire the shares
of mall owner GGP Inc. that it
doesn’t already own, according
to people familiar with the
matter.
Brookfield has offered to
pay $23 a share for the re-
maining 66% of GGP, half in
cash and half in equity, some of
the people said. GGP investors
could choose either cash or
0.9656 of a limited-partnership
unit of Brookfield Property for
each share, subject to prora-
tion that keeps the consider-
ation of cash and units from
Long Rally
Appears
A Bit Worn
A rally that has sent stock
indexes around the world to
records showed signs of stall-
ing this past week, highlight-
By Corrie Driebusch,
Sam Goldfarb
and Ben Eisen
ing fears that buoyant markets
could be poised for a pullback.
The Dow Jones Industrial
Average posted its worst week
since September after inves-
tors grew nervous about the
chances for a sweeping U.S.
tax overhaul. Adding to the
concern: A drop in the junk-
bond market, often viewed as
an early warning sign of
broader market stress, capped
by the cancellation of two sep-
arate debt sales.
Many money managers
have been watching for
months for signs of cracks in
the market’s steady gains. In-
stead, major stock indexes
have embarked on a remark-
Please see MARKETS page B2
INSIDE
LET THE SALES BEGIN:
SWIFT’S ALBUM SCORES BIG
MARKETING, B5
TECHNOLOGY: ACCELERATORS GET STARTUPS UP TO SPEED ON FINANCE B4
* *
S&P FIN g 2.65% S&P IT À 0.002%
each exceeding $7.4 billion.
On Friday, GGP shares
closed at $22.20, having
surged on reports earlier in
the week of a potential deal
between the companies.
Brookfield owns about 34%
of Chicago-based GGP, for-
merly known as General
Growth Properties, which has
a market value of about $21
billion.
There is no guarantee that
GGP will agree to the offer,
which Brookfield submitted to
the company’s board Saturday,
according to a person familiar
with the matter. Any deal
would also be subject to ap-
proval from a majority of non-
Amber Waves of Grain? Nyet
AGAINST THE GRAIN: Large investments and a weaker ruble helped Russia surpass the U.S. as the world’s top wheat exporter. B10
THE WALL STREET JOURNAL.
DJ TRANS g 2.60%
Brookfield-affiliated GGP
shareholders.
GGP owns around 125 high-
end retail centers around the
U.S., including Tysons Galleria
near Washington, D.C., Glen-
dale Galleria outside Los Ange-
les and Chicago’s Water Tower
Place. The company emerged
from bankruptcy in 2010 with
backing from Brookfield and
other investors.
Brookfield Property owns or
operates office properties, re-
tail centers, multifamily hous-
ing units among about $68 bil-
lion in total assets. The firm is
part of Brookfield Asset Man-
agement, an alternative-asset
manager with more than $265
KEYWORDS | By Christopher Mims
AI Still Needs a Human Touch
If you want
to understand
the limitations
of the algo-
rithms that
control what
we see and hear—and base
many of our decisions upon—
take a look at Facebook Inc.’s
experimental remedy for re-
venge porn.
To stop an ex from sharing
nude pictures of you, you
have to share nudes with
Facebook itself. Not uncom-
fortable enough? Facebook
also says a real live human
will have to check them out.
Without that human re-
WSJ $ IDX g 0.43% LIBOR 3M 1.413 NIKKEI 22681.42 À 0.63%
billion under management, in-
cluding about $150 billion in
real estate. Its portfolio in-
cludes London’s Canary Wharf
and Brookfield Place in lower
Manhattan.
If a deal is reached, it would
come at a tough time for mall
operators, which are strug-
gling to adapt to the migration
of shoppers to the web. Before
GGP shares rallied earlier in
the week, they were down
about 25% so far this year.
GGP operates “A malls,”
premium properties that house
movie theaters, restaurants,
ice-skating rinks and other en-
tertainment venues alongside
traditional retailers.
view, it would be too easy to
exploit Facebook’s antire-
venge-porn service to take
down legitimate images. Arti-
ficial intelligence, it turns out,
has a hard time telling the
difference between your na-
ked body and a nude by Ti-
tian.
The internet giants that
tout their AI bona fides have
tried to make their algorithms
as human-free as possible,
and that’s been a problem. It
has become increasingly ap-
parent over the past year that
building systems without hu-
mans “in the loop”—espe-
cially in the case of Facebook
Monday, November 13, 2017 | B1
See more at WSJMarkets.com
While its properties have
Higher Online
A recent sampling of product
pricing at Walmart.com (n)
compared with in-store prices (n)
held up better than lower-end Knorr Alfredo pasta side dish (4.4 oz)
malls, it has made some
$1.65
changes to adapt to shifting
consumer behavior. $0.94
Like other mall operators,
GGP has taken back spaces Betty Crocker Hamburger Helper
(twin-pack)
from dozens of department
stores that no longer draw the $3.30
heavy foot traffic they once $2.50
did, replacing them with gyms,
high-end grocery stores or Kraft Thick n’ Creamy
fast-fashion retailers. Macaroni & Cheese (1 box)
Part of the rationale of the $1.48
proposed deal would be to
$1.28
help the mall operator add fea-
tures to its properties, such as Colgate 360 Optic White
office space, entertainment toothbrushes (2 count)
and apartment blocks, one of
$5.39
the people said.
$4.96
Sources: Walmart.com; WSJ reporting
THE WALL STREET JOURNAL.
Wal-Mart
Lifts Web
Prices to
Aid Stores
BY SARAH NASSAUER
Wal-Mart Stores Inc. wants
to charge more to buy some
products online than in stores,
part of the company’s efforts
to boost profits and drive
store traffic as it competes
with Amazon.com Inc.
The world’s biggest retailer
has quietly raised prices for
some food and household
items sold on its U.S. website,
including boxes of Kraft Maca-
TIMKIV VITALY/TASS/ZUMA PRESS
roni & Cheese, Colgate tooth-
brushes and bags of Purina
dog food, according to people
familiar with the matter and
comparisons between online
and in-store prices.
Some big-box retailers
charge more for online pur-
chases, including Costco Whole-
sale Corp., but the move is un-
usual for Wal-Mart, which has
long honed an “everyday low
price” message and has worked
to keep online prices at least as
low as shoppers find in its 4,700
U.S. stores.
Wal-Mart previously aimed
to keep online and in-store
prices equal for many of its
most popular products—unless
and the ads it linked to 470 competition drove them lower.
“inauthentic” Russian-backed But the company is experiment-
accounts—can lead to disas- ing with a new system, which
trous outcomes, as actual hu- has at times resulted in higher
man brains figure out how to web prices for goods that
exploit them. would otherwise be unprofit-
Whether it’s winning at able to ship, the people familiar
games like Go or keeping with the situation said.
watch for Russian influence In some cases, product list-
operations, the best AI-pow- ings on walmart.com show an
ered systems require humans “online” and “in the store”
to play an active role in their price. Often the online price
creation, tending and opera- matches Amazon.
tion. Far from displacing
workers, this combination is
“We always work to offer
the best price online relative
spawning new nonengineer
jobs every day, and the pre-
to other sites,” a Wal-Mart
spokeswoman said. “It simply
ponderance of evidence sug- costs less to sell some items in
Please see MIMS page B4 Please see PRICE page B2
LIQUIDITY
SPY RESILIENCY
PERFORMANCE
 For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
B2 | Monday, November 13, 2017 NY * *** THE WALL STREET JOURNAL.

INDEX TO BUSINESSES BUSINESS & FINANCE

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

A
Activision Blizzard....B11
Advance Publications.B5
Airbus..........................B2
Alibaba Group.............B4
Alphabet......................B4
Altice.........................B11
Amazon.com ............... B1
American Tower REIT
...................................B10
Apple...........................B5
AT&T..........................B11
B Sub Zero Ice Cream..R11
Baker Hughes.............A2
Big Machine Records..B5
Blue Bottle Coffee......B2
Boeing ......................... B2
Boomtown Accelerator
.....................................B4
Bowie Resource
Partners....................B2
Brookfield Asset
Management.............B1
Crown Castle
International...........B10
D-E
Dunkin' Brands Group B2
Electronic Arts..........B11
Emirates Airline ......... B2
F-G
Facebook......................B1
FireEye......................A10
Fitbit..........................R10
Fyzical Therapy &
Balance Center.......R10
GE Capital...................A2
GE Healthcare.............A2
General Electric..........A1
Gentle Transitions......R4
GGP..............................B1
Glu Mobile.................B11
Good Buy Gear............B4
H-J
Hangzhou HIK Vision
Digital Technology....A1
N-O
NRG Energy.................B2
Orange.......................B11
Orbital ATK.................B3
Coffee Makers Go Ready to Drink
R-S Industry rolls out
Rusagro Group..........B10
SBA Communications
bottled or canned
...................................B10
Solaris Commodities B10
frappés, iced mochas
Sotheby's..................A11 and cold brews
Starbucks....................B2
Stryker ........................ R6
BY JULIE JARGON
T-U-V
Techstars.....................B4 The hottest thing in coffee
Telefonica..................B11
now is the supermarket cold
Time ............................ B5 case.
Trian Fund Management
.....................................A2 Every major coffee maker
Twitter ........................ B4 from McDonald’s Corp. to
21st Century Fox........B5 Blue Bottle Coffee Co. is pil-
Uber Technologies ...... B3
ing onto the refrigerated

ALLISON SCOTT/THE WALL STREET JOURNAL

Brookfield Property
Partners....................B1
C L-M
Caring Transitions ...... R4
Charles Schwab .......... R3
China Electronics
Technology Group...A10
Christie's...................A11
Comcast.....................B11
Condé Nast..................B5
Huawei Tech.............A10
J.C. Penney..................B2
Lannett......................B11
Let’s Move .................. R4
Liberty Global ........... B11
Macerich....................B10
McDonald's..................B2
Murray Energy............B2
Mylan.........................B11
United Income.............R3
Vanguard Group..........R3
Viacom.........................B5
W-Y-Z
Wal-Mart Stores.........B1
Walt Disney................B5
Wright Medical...........R6
Y Combinator..............B4
Zimmer Biomet .......... R6
Zynga.........................B11
shelves of grocery stores with
bottled or canned frappés, iced
mochas and cold brew, a drink
made from steeping coffee
grinds in cool water for sev-
eral hours.
U.S. retail sales of refriger-
ated ready-to-drink coffee rose
29% in the 52 weeks ended

INDEX TO PEOPLE Sept. 10 to more than $289

A-B
Acheson, Leo...............B6
Austin, Rob.................B6
Bensema, Dave...........R1
Bluck, Susan ............... R5
Bornstein, Jeff ........... A2
Brown, Neil.................R1
C-D
Carter, Graydon...........B5
Coughlin, Joseph.........R2
Deems, Daniel...........R10
Drahi, Patrick............B11
F-G
Flannery, John............A1
Fonarow, Gregg...........B6
Golant, Stephen..........R2
Graziano, Chuck........R11
H-I
Hale, Danielle ............. R2
Horwitz, Leora............B6
XINHUA/ZUMA PRESS
Hu Yangzhong...........A10
Immelt, Jeff................A2
Irving, Paul..................R1
L-M
Lefkowitz, David.........B2
Lok, Anna S ................ R6
Loomba, Rohit ............ R6
McAdams, Dan............R5
McMillon, Doug...........B2
Meirowitz, Ben...........R4
Miller, Jamie...............A2
N-O-P
Newes, Mike...............R1
Nickelson, Chris........A10
Oakley, Garret.............R3
O'Brien, Fran...............R4
Pavlos, Carlene.........R10
Pennebaker, James W.
.....................................R5
Phelan, Elizabeth......R10
Porter, Andrew ........... R3
Pu Shiliang................A10
Pynoos, Jon...............R10
R-S-T
Racz, Pierre...............A10
Ramsey, Doug.............B2
Ramthun, Roy.............B6
Searfoss, Jason .......... B4
Simpson, Terry............B2
Smyth, Joshua............R5
Sperling, Bert ............. R1
Stokes, Kathy ............. R4
Stokes, Russell...........A2
Swift, Taylor...............B5
Tapper, Elliot...............R6
U-W-Z
Umar, Tarik ............... B11
West, Rob.................R11
Whitbourne, Susan
Krauss.......................R5
Wortman, Paul............R5
Zheng Yibo................A10
million, according to market
researcher IRI. The broader
category of ready-to-drink cof-
fee, which also includes bever-
ages sold at room temperature
but intended to be chilled after
opening, is valued at nearly
$2.7 billion, according to esti-
mates from Mintel, which pre-
dicts sales will reach more
than $4.4 billion in the next
five years.
Ready-to-drink coffee in
both cold and shelf-stable form
is a bright spot in an industry
that is facing slowing growth,
and coffee-company executives
see improving their market
share in supermarkets and
convenience stores as crucial.
Several factors are working
in favor of the cold stuff.
Younger consumers say
they view cold coffee as a
healthier alternative to energy
drinks and soda. It is often
cheaper than a cup of specialty
coffee at a coffee shop. And
people are increasingly con-
suming on-the-go and have
less patience to wait, as evi-
denced by the rise of e-com-
merce and mobile order apps.
Kris Hardaway, a 24-year-
old receptionist in Little Rock,
Younger consumers say they view cold coffee as a healthier alternative to energy drinks and soda.
of cold brew concentrate that
she buys from Whole Foods for
$10.99 in her refrigerator and
pours herself a cup every
morning to drink during her
drive to work. She said one
bottle lasts her about a week
and a half.
“It’s easier than waiting for
my coffee maker to start,” she
said, and faster than waiting in
Cold coffee is the beverage
of choice among 18- to 35-
year-olds, the demographic
group driving coffee consump-
tion in the U.S., according to
industry analysts. Mintel found
that 53% of millennials sur-
veyed last month said they
drank iced coffee in the last
three months, up from 46% a
year ago.
Nigel Travis, chief executive
of Dunkin Brands Group Inc.,
said he is happy to be making
inroads in a category that he
said Starbucks has long domi-
nated with its bottled Frappuc-
cino drinks. Getting its bottled
coffee in cities where Dunkin
doesn’t yet operate coffee
shops allows it to introduce
new consumers to the brand,
he said, adding that the chain’s
bottled cold coffee has ex-
ceeded $100 million in retail
sales since being rolled out in
supermarkets and convenience
stores early this year.
Starbucks said it plans next
year to roll out new bottled
Frappuccinos and coffee-and-
fruit smoothies made with al-
serve cold brew.
Making and distributing
bottled coffee to grocery
stores is a much more costly
proposition than grinding
beans and brewing coffee in a
coffee shop, however.
Dave Burwick, chief execu-
tive of Peet’s Coffee, said cold-
brewed coffee is particularly
challenging and expensive to
produce because it requires
twice the amount of coffee
than regular iced coffee to ex-
tract flavor.
There are also multiple
companies involved in the sup-
ply chain, each taking a cut of
the profits, from the co-pack-
ers that make the concentrate
to the bottling companies that
package it to the refrigerated
trucks that ship the cans or
bottles to stores. Peet’s, how-
ever, operates its own direct-
to-store chilled delivery net-
work. Despite the cost, major
coffee retailers say they need
to capture sales wherever cof-
fee drinkers are and offer
more cold alternatives for
younger consumers who es-

Ark., keeps a 32-ounce bottle line at a coffee shop. mond milk and bottled single- chew hot coffee.

A Boeing 787-10 Dreamliner on display in mid-June near Paris.

MARKETS ment. Despite the calm climb
higher, Mr. Lefkowitz said in
recent months he has been
consistently asked about
fort. NRG offered a 5.75% yield
for new bonds due 2028, but
that was at least a quarter-
ing. “At the end of the day, we
are still in a sustained eco-
nomic expansion that could
percentage point too low for continue into next year.”

Emirates Air, Boeing Continued from the prior page

able rally. The Dow industrials
have climbed 19% in 2017,
whether markets are due for a
pullback.
On Friday, coal company
investors, according to people
familiar with the deal.
Spokesmen for Bowie and
The stock market owes its
previous two months of
weekly gains in large part to

In $15.1 Billion Deal notching 59 records in the

process, the most in a calen-
dar year since 1995.
Bowie Resource Partners LLC
pulled a $375 million bond of-
fering that would have helped
NRG didn’t immediately return
requests for comment.
Meanwhile, stocks declined
strong quarterly results from
companies across all sectors,
according to traders.
BY ROBERT WALL were waiting in the hallways Along the way, investors fund its takeover by a group of after the Senate bill con- Investors haven’t entirely
AND NICOLAS PARASIE at the air show for their own overcame rising tensions be- investors led by Murray En- trasted with the House version curtailed their risk taking. In a
deal announcement, only to tween the U.S. and North Ko- ergy Corp. and the formation in key areas, including in its sign that it doesn’t take much
DUBAI—Emirates Airline be snubbed. rea, legislative setbacks in of a partnership, leaving fi- plan to delay the corporate to lift stocks, shares of bat-
renewed its aircraft-buying An Airbus spokesman said Washington, D.C., disruptive nancing for the deal uncertain. tax-rate cut until 2019. tered retail companies rallied
spree, committing to pur- the carrier wouldn’t comment hurricanes and the indictment A spokesperson for Murray Smaller companies fell Friday, even as the broader
chase $15.1 billion worth of on the status of talks with of a presidential campaign of- Energy confirmed the bond more than their large-com- market declined. J.C. Penney
Boeing Co. 787 Dreamliners. customers. ficial. Instead, they have fo- was pulled but didn’t provide pany counterparts, with the Co. gained 15% after better-
Boeing bested Airbus in The Boeing deal is a bet by cused on higher corporate further comment. small-cap benchmark Russell than-expected earnings for the
the competition to sell Emir- Emirates Airline that its busi- earnings, a steadily expanding Bowie had raised the pro- 2000 down 1.3% in the past July to September period. The
ates Airline, the world’s larg- ness model of shuttling pas- U.S. economy and hopes for a posed yield on the notes to week compared with the SPDR S&P Retail exchange-
est carrier by international sengers between North Amer- cut in the corporate tax rate. around 11%, but potential buy- Dow’s 0.5% weekly decline. In- traded fund rose 1.6%
traffic, new twin-engine long- ica and Europe to Asia via “The reason volatility has ers were wary about investing vestors view smaller compa- Similarly, despite the pull-
haul planes. Dubai will persist. been so low this year is that in a debt-laden company in a nies as bigger beneficiaries of back in the junk-bond market,
Emirates will buy 40 of It comes as Emirates is economic data around the challenged sector, investors a tax overhaul than their many investors believe it is
Boeing’s new 787-10, the larg- grappling with changes in its world has been so strong,” said. large-company counterparts still in generally good condi-
est model in the family of core market. Three years of said David Lefkowitz, senior On Thursday, merchant because small firms tend to tion. Recent selling has come
Dreamliner composite airlin- relatively low oil prices have equity strategist of the Ameri- power company NRG Energy pay a higher median effective after the extra yield to hold
ers, with deliveries planned weighed on business-class de- cas at UBS Wealth Manage- Inc. canceled a refinancing ef- tax rate. junk bonds relative to ultrasafe
to start in 2022. mand. Other victims of the down- Treasury bonds was on the
The deal, announced Sun- Bookings this year also turn: Shares of this year’s verge of reaching its lowest
day by Emirates Airline on were hit by U.S. travel bans Signs of Jitters best-performing companies, as level since the financial crisis.
home turf at the Dubai Air against passengers from some U.S. stocks and junk bonds declined in the past week, reflecting some investors took the op- At least five companies with
Show, is a painful loss for Middle East countries, which investors' concern about markets that have been up this year. portunity to secure profits. low credit ratings successfully
Airbus, which once had sold were set aside by U.S. courts, Technology companies in the sold bonds on Thursday and
20%
the carrier 70 of its rival and after American authori- S&P 500 fell 0.9% over the last Friday, with borrowing total-
A350 before the carrier can- ties temporarily imposed re- two days of the week but re- ing around $2 billion, accord-
Dow Jones Industrial Average
celed the deal three years ago strictions on the use of lap- main up 37% in 2017. ing to LCD, a unit of S&P
15
after the European plane tops and similar electronic iShares iBoxx $ High Still, investors stopped Global Market Intelligence.
maker redesigned the plane. devices on U.S.-bound flights Yield Corporate Bond ETF short of predicting a pro- As of Thursday, the average
Emirates Airline Chairman over terrorism concerns. longed selloff. junk-bond yield was 5.74%, up
10
Sheikh Ahmed bin Saeed Al The airline last week re- “We’re looking past this from 5.31% on Oct. 24, accord-
Maktoum said the 787 was ported half-year net profit two-day turmoil in the mar- ing to Bloomberg Barclays data.
“the better option” for the more than doubled amid ket,” said Terry Simpson, mul- Yields rise when prices fall.
5
airline. signs travel demand was re- tiasset investment strategist “The cracks are still so few
Sheikh Ahmed earlier this covering and was bolstered for BlackRock’s global invest- and far between that the bull
month signaled he was also in by favorable exchange rates. ment strategy team, noting deserves the benefit of the
0
talks with Airbus about plac- The carrier warned, though, that corporate earnings re- doubt,” said Doug Ramsey,
ing another order for A380 that margins remain under J F M A M J J A S O N main strong and economies chief investment officer of
superjumbos. Airbus officials pressure. Source: FactSet THE WALL STREET JOURNAL. around the world are grow- Leuthold Group in Minneapolis.

PRICE
MILITARY POLICE OF THE STATE
stores as well as raise its e- profits. proving existing stores and in- But Amazon continues to OF SÃO PAULO - BRAZIL
commerce margins by offset- Marc Lore, head of Wal- vesting in e-commerce. In grab market share. Amazon is CENTER FOR SUPPLY AND
MAINTENANCE OF ARMAMENT
ting the cost to ship orders to Mart’s U.S. e-commerce unit, 2015 it closed more than 150 expected to earn 43.5% of U.S. AND AMMUNITION - (CSM/AM)
homes. told investors in October that U.S. stores, and it plans to online sales this year, up from THE CSM/AM FROM MILITARY POLICE
Continued from the prior page A $1.28 box of Kraft Maca- “this year should be the larg- build just two dozen stores 38.1% last year, according to OF STATE OF SÃO PAULO, BRAZIL,
ANNOUNCES AN INTERNATIONAL
stores. Customers can access roni & Cheese could cost a big est loss in e-commerce, and next fiscal year. eMarketer, a research firm. Wal- COMPETITIVE BIDDING FOR ACQUISITION
those store prices online when retailer around $10 to ship we’ll see slight improvement Without new stores, Wal- Mart will grow to 3.6%, from OF FIREARMS, TO BE USED BY
SPECIAL FORCES OF MILITARY POLICE
they choose to pick up the from Chicago to Atlanta, de- next year.” Mart executives say they will 2.8% last year, said the firm. OF THE STATE, ACCORDING THE
item in store.” pending on how remote the Overall, Wal-Mart expects boost sales by bringing more Wal-Mart e-commerce FOLLOWING ORDER: PROCEDURE Nº
CSMAM-2017340003: TENDER OFFER OF:
On Friday, a box of Kraft buyer’s address is, according to profit margins to be slightly shoppers to existing locations workers responsible for prod- 5.000 (FIVE THOUSAND) SEMI-AUTOMATIC
Thick n’ Creamy Macaroni & a cost analysis by consultants down this year. Wal-Mart’s net and driving online sales. Wal- uct sales have been instructed PISTOLS, CALIBER S&W.40, WITH
ACCESSORIES AND SPARE PARTS KIT.
Cheese Dinner was $1.48 on Spend Management Experts. A income has declined the past Mart has raised starting wages to boost profits along with THE PROCEDURE WILL BE PERFORMED
walmart.com, the same as Ama- smaller retailer would likely two fiscal years, down 7.2% to for store employees, refur- sales, according to the people AT THE HEADQUARTERS OF CSM/AM,
zon’s price but more than Wal- pay about double. A twin pack $13.6 billion in the last fiscal bished stores and bought familiar with the situation, LOCATED AT RUA ALFREDO MAIA, 106
- LUZ - SÃO PAULO CITY - BRAZIL. ZIPE
Mart’s $1.28 store price (listed of Hamburger Helper could cost year ended Jan. 31, 2017. The smaller online retailer startups. and are “no longer obligated CODE 01106-010. OPENING: DECEMBER
online). A similar comparison around $10 to ship between company is scheduled to re- So far, the bet is working. to follow store pricing,” one of 15TH, 2017. AT 9:30 AM (LOCAL TIME).
THIS PROPOSAL IS FORMALLY KNOWN
for a twin-pack of Betty Crocker Minneapolis and Atlanta, esti- port third-quarter earnings on Wal-Mart has increased sales them said. AS PRESENTIAL TRADING SESSION IN
INTERNATIONAL SCOPE. THE WINNER
Hamburger Helper showed the mates the firm. Thursday. in existing stores for 12 con- The company is also asking WILL BE CHOSEN BASED ON THE LOWEST
price as $3.30 online, but $2.50 Wal-Mart is investing bil- Since Wal-Mart’s current secutive quarters, boosted by suppliers to sell more of their PRICE.THE INTERESTED PROPOSER MAY
TAKE NOTICE AND OBTAIN DOCUMENTS
if purchased at a Wal-Mart lions to boost e-commerce chief executive, Doug McMil- more shoppers coming to merchandise in bulk ver- CONCERNING BY MEANS, UNTIL 48
HOURS BEFORE OPENING OF THE
store in Illinois. sales, which rose 60% in the lon, took the job in 2014, the stores at a time when many sions—instead of single PROCEDURE THROUGH THE WEBSITE
The higher online prices are U.S. in the most recent quar- retailer shifted its growth traditional retailers face slug- boxes—to increase order sizes csmam@policiamilitar.sp.gov.br.
QUESTIONS OR INQUIRIES SHOULD BE
ANY

part of Wal-Mart’s efforts to ter, but some shareholders strategy from building more gish sales. Its stock closed at a and make them more profit- TAKEN OFF BY E-MAIL OR CALL PHONE
TO +55-11-3228-6055/3228-6449.
nudge more customers into worry the effort could drag on cavernous supercenters to im- high Friday at $90.92. able, the people said.
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
THE WALL STREET JOURNAL. * * Monday, November 13, 2017 | B3

BUSINESS NEWS

Successful Launch
For Antares Rocket
BY ANDY PASZTOR company’s rebound from a cat- tude orbits.
astrophic 2014 rocket explo- Commercial space-trans-
Orbital ATK Inc. launched a sion at the start of a mission portation companies Space
civilian cargo capsule into orbit for the National Aeronautics Exploration Technologies

BILL INGALLS/AGENCE FRANCE-PRESSE/GETTY IMAGES

Sunday, marking the second suc-
cessful flight of the redesigned
Antares rocket and raising the
company’s hopes of develop-
ing a more powerful booster
for Defense Department mis-
sions in the next decade.
During the flawless liftoff
from coastal Virginia at 7:20 a.m.
local time, both rocket stages
functioned as intended, propel-
ling a Cygnus spacecraft into a
planned trajectory to reach the
international space station. The
Cygnus, an automated cargo
spacecraft, was crammed with
nearly four tons of food, exper-
iments and supplies, including
cameras, computer hardware
and more than a dozen small
experimental satellites.
The launch continued the
and Space Administration. In-
vestigators said the explo-
sion—which destroyed a cargo
capsule it was carrying and all
its contents—was caused by a
malfunctioning, 1970s-era Rus-
sian-built engine.
An Antares rocket with the
same revamped propulsion
system as Sunday’s craft deliv-
ered an unmanned capsule to
the orbiting international lab-
oratory last year as part of a
NASA contract.
Sunday morning’s launch
also is likely to increase mo-
mentum for Orbital ATK’s ef-
forts to eventually compete
with a trio of other companies
vying for Pentagon approval to
transport future national-secu-
rity satellites into high-alti-
Corp., led by billionaire Elon
Musk, and Blue Origin LLC,
founded by Amazon.com Inc.
Chairman Jeff Bezos, also are
looking to snare such future
Pentagon business. So is
United Launch Alliance, a
rocket-making joint venture
between Boeing Co. and Lock-
heed Martin Corp., which cur-
rently is the primary heavy-
lift launch provider for the
U.S. military.
Next year, Air Force pro-
curement officials are ex- Orbital ATK’s redesigned Antares rocket, with a civilian cargo capsule, at Sunday’s liftoff in Virginia.
pected to pick three contrac-
tor teams to provide based Orbital ATK’s argument the latest launch, the company Sunday’s mission also
prototype rockets intended to for its next-generation launch announced it cleared an im- comes as Northrop Grumman
meet military needs through system and potentially per- portant milestone testing the Corp. seeks to complete its
the next decades. suade Pentagon brass on the structural strength of the proposed acquisition of Or-
A well-functioning Antares company’s resilience and ex- composite case for future solid bital ATK in a transaction val-
could help buttress Virginia- pertise. Just four days before rocket motors. ued at more than $9 billion.

Uber Fare Adjustments Found to Have No Effect on Drivers’ Pay

BY GREG BENSINGER
Hours before Uber Tech-
nologies Inc.’s chief executive
resigned in June, the ride-hail-
ing company announced a six-
month goodwill effort to ease
its strained relationship with
drivers, who have long sought
better work conditions and
higher pay.
Since then, Uber has un-
leashed a host of goodies, in-
cluding extra payments for
lengthy wait times, routing im-
provements and in-app tipping.
The incentives are vital to
keeping its contract drivers
happy, especially as executives
have come to an inconvenient
realization: Uber effectively
has no way to raise drivers’
hourly wages.
The dilemma is laid bare in a
recent study by Uber, con-
ducted in cooperation with a
New York University assistant
professor, that found that no
matter which direction fares
go, drivers inevitably take
home about the same earnings
over time. That is because of
how easy it is for drivers and
riders to jump on and off the
The ride-hailing firm
must rely on pricey
incentive payments to
bring earnings up.
system, according to the study.
When there is a fare cut,
drivers’ pay per trip falls but
riders flood the service, offer-
ing more business. A price rise
eventually lures more drivers
than Uber needs and scares
away riders. The changes are
short-lived as an equilibrium is
reached after about eight Those payments are one of
weeks, and drivers’ average the chief reasons Uber has
pay comes out the same. been a money-losing opera-
“The overwhelming story is tion—along with expenses like
that it doesn’t seem to matter opening new markets and
what Uber does with fares” building out projects like pre-
when it comes to driver earn- pared-food delivery—recording
ings, said John Horton, an NYU over $4 billion in losses over
assistant professor of informa- the past six quarters through
tion, operations and manage- the first half of this year. The
ment sciences, and a co-author predicament may make it diffi-
of the study, called “Labor cult for Uber’s new CEO, Dara
Market Equilibration: Evidence Khosrowshahi, to tame those
from Uber.” His co-authors are losses before it goes public as
two Uber executives, Jonathan expected, as soon as 2019.
Hall, the company’s chief econ- A pathway for Uber to re-
omist, and Daniel Knoepfle, a ceive a multibillion-dollar in-
senior economist. vestment led by SoftBank Group
All of this means Uber, and Ltd., and a powerful new ally in
other ride-sharing services, the Japanese investor, was
must lean heavily on pricey in- cleared Sunday after former
centive payments—cash for CEO Travis Kalanick and a ma-
completing a certain number jor investor, Benchmark,
of rides a week, say—to bring reached agreement over control
driver earnings above what of board seats, according to
typically amounts to around people familiar with the matter.
minimum wage. Uber has long had a conten-
tious relationship with drivers,
some of whom have bemoaned
the lack of benefits and con-
tend that they should be
treated as employees. On Fri-
day, a British court ruled San
Francisco-based Uber must
grant its drivers employee
rights that could significantly
boost labor costs there.
As contractors, drivers pay
for expenses like fuel, vehicle
insurance and maintenance, and
some say they feel powerless to
combat sudden fare changes or
Uber’s rules on driving.
Uber does have the power
to lower fixed fees and the
25% commission it charges
most drivers to put more
money in drivers’ pockets, said
Ryan Price, executive director
of the Independent Drivers
Guild, which represents some
drivers in New York.
Using Uber trip data from
43 of the largest U.S. cities
from June 2014 to January
2017, the researchers analyzed
the base fare, or the rates tied
to distance and time. They as-
sessed the effects of the fare
changes for its main UberX ser-
vice between cities, and then
within cities compared UberX
with the UberBlack luxury ser-
vice, for which fares have gen-
erally remained steady.
The results of the study
stand in contrast to Uber’s
longstanding argument to driv-
ers that price cuts ultimately
lead to more driver earnings.
Uber’s chief economist, Mr.
Hall, said Uber generally
pushes for lower fares because
it means more riders can use
the service, but he said the
study’s conclusions mean Uber
has freedom to adjust fares in
either direction to achieve cer-
tain ridership benchmarks,
without fear of broadly dam-
aging drivers’ earnings.

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B4 | Monday, November 13, 2017 THE WALL STREET JOURNAL.

TECHNOLOGY WSJ.com/Tech

Build a Business—and Learn the Finances

Incubators now teach vice on a case-by-case basis.
“We make sure that founders
young entrepreneurs understand that if they raise
about the numbers money, it’s not their money.
They’re being trusted to create
behind their startups a business,” Ms. Nathoo said.
After its Boomtown experi-
BY KIMBERLY S. JOHNSON ence earlier this year, Good
Buy Gear wanted to raise about
When Kristen Langenfeld $300,000 in convertible notes.
and her co-founder began a It ended up with $325,000
white glove service for selling from two angel investors and
preowned children’s gear, they Relay Ventures, a Silicon Valley
used Excel spreadsheets and venture-capital firm.
QuickBooks to keep track of “We didn’t know any of this
sales and expenses. language before starting here,”
After a few weeks at the Ms. Langenfield said.
Boomtown Accelerator pro- Boomtown companies have
gram in Boulder, raised more than $50 million

MATT NAGER FOR THE WALL STREET JOURNAL

CFO Colo., the Good
JOURNAL Buy Gear Inc.
team realized
they had more
work to do.
“We had to figure out the
drivers of our business,” said
Ms. Langenfeld. The company
wasn’t tying selling, general
and administrative expenses
to revenue-related milestones,
she said.
Incubator programs designed
to help young entrepreneurs get
their products and services off
the ground are popular proving
grounds for startups. Techstars
and Y Combinator have had
thousands of entrepreneurs
flow through their accelerator
and mentoring programs over
the years, with most of the
work focused on the technology
behind the product.
Y Combinator has invested in
more than 1,400 companies
since 2005, including Airbnb
Inc. and Instacart Inc. Techstars
has mentored over 1,000 com-
Jason Searfoss, second from right, finance chief of Boomtown Accelerator, which offers a program on financial and legal issues.
panies including Contently Inc.,
which connects writers with
paid marketing assignments.
Now, a new generation of
programs is placing more em-
phasis on the financial aspects
of launching a successful busi-
ness.
Nearly 80 teams have com-
pleted Boomtown’s 12-week
program since it was founded in
2014. In addition to technical
resources, the curriculum pro-
vides legal and financial train-
ing. By the third week, compa-
nies are developing their
business models, estimating
granular-level expenses and fig-
uring out “the underlying as-
sumptions that drive those ex-
penses,” said Jason Searfoss,
finance chief for Boomtown Ac-
celerator.
“We found that our teams
were starving for this kind of
curriculum, one that’s focused
on finance and legal pitfalls to
avoid,” said Mr. Searfoss, who
also leads the finance and fund-
raising curricula for startups
that join the program.
The first time Bitsbox co-
founder Aidan Chopra had to
create a forward-looking in-
come statement, he “didn’t
know where to get those num-
bers from.” The company, which
teaches children how to code
apps through colorful printed
kits delivered each month, had
a “crappy, little piece of paper”
describing the business when it
went through the Boomtown
program in 2014.
Techstars, by contrast, pro-
but are generating annual reve-
nue in excess of that amount,
said executive director and co-
founder Toby Krout. “We work
to focus on the entrepreneur
and the core business and to
raise only the amount of capital
actually needed to support the
business and no more,” he said.
While investors often have
the upper hand on tech-ori-
ented startups when it comes to
finances, most still want to see
that young companies are in-
vides no formal finance pro- formed.
gram, as the incubator works to “Most entrepreneurs don’t
bring in mentors of “the highest see finance as a core function,”
quality,” said Nicole Glaros, said Robert Okabe, a former
chief innovation officer at Tech- CFO and angel investor who is
stars. Instead, it touts the now leading commercialization
strength of its mentoring pro- efforts at Polsky Center for En-
gram and the one-on-one atten- trepreneurship and Innovation
tion its teams receive. at the University of Chicago.
Y Combinator also expects “It’s good for me as an inves-
founders in its program to have tor to have a reasonably in-
a “basic understanding of num- formed entrepreneur on the
bers,” said CFO Kirsty Nathoo. other end of the table,” he said.
The mentorship is specific to —Rheaa Rao contributed
each group, which receives ad- to this article.

Singles Day Is Hit for Alibaba

BY LIZA LIN Ms. Zhang, who said she gets, an $8 jar of pecans came

DAI SUGANO/SAN JOSE MERCURY NEWS/TNS/ZUMA PRESS

SHANGHAI—To see China’s
consumer clout in action, look
no further than Alibaba Group
Holding Ltd.’s Singles Day.
The e-commerce giant said
it racked up more than $25.3
billion in sales in the 24 hour-
period that began at 12 a.m.
Saturday—helped along by a
gala TV show, a marketing
campaign that pushed advance
orders, and the usual dis-
counts on everything from
cosmetics to cars. Last year,
the company logged sales of
$17.8 billion. That number was
exceeded by 1 p.m. this year.
Smartphones and appli-
ances were among the top-
selling items. Among the most
expensive: An Aston Martin
racing yacht purchased for 17
million yuan ($2.56 million).
Zhang Yi Fan, a 21-year-old
college student in Shanghai,
said she stayed up late to snag
deals as soon as the sales be-
gan in the wee hours of Satur-
day morning.
“I refrained from buying
anything over the last month
in anticipation of this,” said
bought 3,000 yuan ($451)
worth of clothing, snacks and
shampoo online.
This year’s variety telecast
plugging the sales event fea-
tured celebrities including Ni-
cole Kidman and Pharrell Wil-
liams, and the catchphrase “buy-
buy-buy.” Two Victoria Secret
models led the gala’s hosts in a
fitness routine to promote the
brand’s latest athletic apparel.
Entertainment is key to
reaching China’s younger con-
sumers, who are passionate
online buyers coveted by re-
tailers for their impulsive
shopping habits and their dis-
cretionary spending power,
said Kitty Fok, China’s manag-
ing director for research firm
International Data Corp.
“Many of them are from
single-child families, who
don’t have to fight with other
siblings for pocket money,”
Ms. Fok said.
Deals are at the heart of the
holiday. Big-screen Sharp TVs
that list for $1,500 could be had
for about $520. A $1,000 tread-
mill was offered for $500. For
those with more modest bud-
with a second jar for free.
Alibaba also uses Singles Day
to roll out new ideas. In a mall
near Shanghai’s Bund district,
women could try out lipstick
colors from Japanese cosmetics
brand Shiseido using a virtual
mirror in the store. The mirror
made it appear as though they
were wearing lipsticks in vari-
ous colors.
Not every innovation is an
instant hit, however. At the
store, there was a long line to
claim a free skin-care sample,
but few takers to try the mirror. Amazon’s Mechanical Turk system outsources individual computer microtasks to a global workforce.
Singles Day—it falls on Nov.
11, or 11/11—was started as a
day to celebrate unattach-
ment. Alibaba turned it into an
online shopping festival in
MIMS Ipeirotis.
A machine-learning-based
AI system is a piece of soft-
ware that learns, almost like a
for these sorts of tasks. By his
calculations, the number of
tasks posted to crowdsourced
online labor platforms, which
2009, setting new sales re- Continued from page B1 primitive insect. That means includes this kind of work, is
cords each year. gests the boom will continue that it can’t be programmed— up 40% in the past year alone.
Some consumers say they for the foreseeable future. it must be taught. Systems at risk of being
have gotten weary of the bar- Facebook, of course, is now To teach them, humans gamed by swindlers also re-
rage of advertisements and a prime example of this trend. feed these systems examples, quire constant human atten-
complicated promotions that The company recently an- and they need truckloads. To tion, says Dr. Ipeirotis. AIs,
come with the event. nounced it would add 10,000 build an AI filter to identify once trained, are inexhaust-
But all the marketing mus- content moderators to the extremist content on You- ible, but this is a curse as
cle—including a heavy push 10,000 it already employs—a Tube, humans at Google man- much as a blessing: People
for consumers to preorder hiring surge that will affect ually reviewed over a million who outsmart the algorithm
items ahead of the sale—did its future profitability, said videos to flag qualifying ex- can multiply their results a
the trick once again. Chief Executive Mark Zucker- amples, says a Google spokes- millionfold.
berg. woman. Humans, on the other

A
nd Facebook is hardly An algorithm can only be hand, are slower than AI, but
Legal Notice alone. Alphabet Inc.’s as good as “the quantity and can identify patterns based
Google has long em- quality of the training data to on very little information.
ployed humans alongside AI get [it] going,” says Robin Any time a system must deal
If You Owned a U.S. Dollar LIBOR-Based to eliminate ads that violate Bordoli, CEO of CrowdFlower with bad actors—like when an
Instrument Between August 2007 and May 2010 its terms of service, ferret out Inc., which provides human entity posing as an American
fake news and take down ex- labor to companies that need on Twitter is actually a Rus-
You May Be Eligible for a Payment from tremist YouTube videos. people to train and maintain sian agent—there is no re-
Google doesn’t disclose how AI algorithms, from auto mak- placement for live staffers.
a $130 Million Settlement many people are looped into ers to internet giants to fi- Some of this labor happens
There is a Settlement with Citibank that impacts What does the Settlement provide? its content moderation, nancial institutions. through outsourced systems
individuals and institutions that entered into over- search optimization and other Even when an AI has been like CrowdFlower and Me-
The Settlement will create a $130 million Settlement
the-counter financial derivative and non-derivative algorithms, but a company trained, its judgment is never chanical Turk, Amazon.com
Fund that will be used to pay eligible Class Members
instruments directly with Citibank, Barclays, or a
spokeswoman says the figure perfect. Human oversight is Inc.’s system for outsourcing
who submit valid claims. Additionally, Citibank
is in the thousands—and still needed, especially with individual computer micro-
Non-Settling Defendant that received payments will cooperate with the Plaintiffs in their ongoing
growing. material in which context tasks to a global workforce of
tied to U.S. Dollar LIBOR. Citibank, Barclays, litigation against the Non-Settling Defendants.
Twitter has its own teams matters, such as those ex- more than 500,000 people.
and the Non-Settling Defendants (Credit Suisse,
How can I get a payment? to moderate content, though tremist YouTube posts. While Across the globe, between
Bank of America, JPMorgan, HSBC, Lloyds,
You must submit a Proof of Claim to get a payment. the company is largely silent AI can take down 83% before 10,000 and 20,000 people a
WestLB, UBS, RBS, Deutsche Bank, Rabobank, about how it accomplishes a single human flags them, week pick up online piece-
Norinchukin, Bank of Tokyo-Mitsubishi UFJ, You can submit a Proof of Claim online or by mail.
The deadline to submit a Proof of Claim is March this, other than touting its says Google, the remaining work, flagging porn in online
HBOS, SocGen, and RBC) are U.S. Dollar LIBOR system’s ability to automati- 17% needs humans. But this forums, teaching self-driving
Panel Banks. The instruments include certain 29, 2018. You are entitled to receive a payment if
you have a qualifying transaction with Citibank, cally delete 95% of terrorists’ serves as further training: systems to identify pedestri-
interest rate swaps, forward rate agreements, accounts. This data can then be fed ans and training facial-recog-
Barclays or a Non-Settling Defendant. At this
asset swaps, collateralized debt obligations, credit Almost every big company back into the algorithm to im- nition algorithms, Dr. Lehdon-
time, it is unknown how much each Class Member
default swaps, inflation swaps, total return swaps, using AI to automate pro- prove it. virta estimates. When you

R
who submits a valid claim will receive.
options, and floating rate notes. cesses has a need for humans elying on AI can lead to include companies’ own inter-
What are my rights? as a part of that AI, says Pa- false positives, as when nal teams, there are probably
The litigation claims that the banks manipulated Even if you do nothing, you will lose your right nos Ipeirotis, a professor at the company pulls hundreds of thousands of hu-
the U.S. Dollar LIBOR rate during the financial to sue Citibank for the alleged conduct and will New York University’s Stern down legitimate content that mans, world-wide, whose
crisis, artificially lowering the rate for their own School of Business. America’s its algorithms think might be work is sold as AI, he says.

D
be bound by the Court’s decisions concerning the
profit, which resulted in purchasers receiving less Settlement. This Settlement will not result in a five largest financial institu- offensive. r. Lehdonvirta’s esti-
interest payments for their U.S. Dollar LIBOR- release of your claims against any Non-Settling tions employ teams of nonen- There are many cases mates don’t include
based instruments from the banks as they should Defendant, and the litigation against Non-Settling gineers as part of their AI when AI can barely perform a the world’s biggest hu-
have. Plaintiffs assert antitrust, breach of contract, Defendants is ongoing. If you want to keep your systems, says Dr. Ipeirotis, task at all, as in the case of man-AI workforce: China’s
and unjust enrichment claims. Citibank denies all right to sue Citibank, you must exclude yourself who consults with banks. Facebook’s nude pic filter. censors. Estimates for the
claims of wrongdoing. from the Settlement Class by January 2, 2018. If AI’s constant hunger for Transcribing receipts and Chinese government’s opera-
you stay in the Settlement Class, you may object to human brains is based on our business cards, tagging videos tion alone range from 100,000
Am I included? the Settlement by January 2, 2018. increasing demand for ser- and moderating adult content to one million. In addition, ev-
You are included in the Settlement if you vices. The more we ask for, are all tasks that “should be ery Chinese internet company
The Court will hold a hearing on January 23, 2018 the less likely a computer al- easy for machine learning, that distributes or hosts con-
(individual or entity): Directly purchased to consider whether to approve the Settlement and
certain U.S. Dollar LIBOR-based instruments gorithm can go it alone— but in practice are too un- tent must have its own cen-
approve Class Counsel’s request of attorneys’
from Citibank, Barclays, or any Non-Settling while the combination can be structured,” says Vili Lehdon- sors, typically one per
fees of up to one-third of the Settlement Fund,
Defendant (or their subsidiaries or affiliates) in more effective and efficient. virta, a senior research fellow 100,000 users.
plus reimbursement of costs and expenses. You
the United States; and owned the instruments at For example, bank workers at the Oxford Internet Insti- Facebook isn’t in China.
or your own lawyer may appear and speak at the
any time between August 2007 and May 2010. hearing at your own expense. who previously read every tute in the U.K. One China internet executive
email in search of fraud now Dr. Lehdonvirta maintains told The Wall Street Journal
make better use of their time the Online Labor Index, a that if it were, it would need
1-888-568-7640 www.USDollarLiborSettlement.com investigating emails the AI real-time estimate of the 20,000 content moderators—
flags as suspicious, says Dr. number of people employed for video alone.
 For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
THE WALL STREET JOURNAL.
MEDIA
First-Day Sales Hot
For Swift’s Album
BY ANNE STEELE
Taylor Swift’s newest album
sold more than 717,000 copies
in the U.S. in its first day of
release, according to Buzzan-
gle Music, putting the pop star
on pace to potentially beat out
week-one sales for her previ-
ous blockbuster.
Ms. Swift on Friday re-
leased “Reputation,” her
sixth studio effort, for sale
only; it wasn’t made avail-
able on streaming services,
such as Spotify AB or Apple
Inc.’s Apple Music. The al-
bum may be held from
streaming for a week or lon-
ger, according to people fa-
miliar with the matter.
The move appears to have
worked, leading to strong
sales, and setting her up for
what could be her biggest
first-week sales.
Ms. Swift’s day-one log for
“Reputation” is shy of the re-
cord—Adele’s “25” made its
debut with 1.5 million copies
sold on its first day in 2015.
But it could nonetheless set
up Ms. Swift to top her previ-
PARAMOUNT PICTURES/EVERETT COLLECTION
From left, Mel Gibson, Mark Wahlberg, Will Ferrell and John
Lithgow star in ‘Daddy’s Home 2,’ from Paramount Pictures.
Estimated Box-Office Figures, Through Sunday
FILM DISTRIBUTOR
1. Thor: Ragnarok Disney
2. Daddy’s Home 2 Paramount
3. Murder on the Twentieth
Orient Express Century Fox
4. A Bad Moms STX
Christmas Entertainment
5. Jigsaw Lionsgate
*Friday, Saturday and Sunday Source: comScore
Mel Gibson Comedy
Enjoys Solid Opening
BY BEN FRITZ
Americans welcomed Mel
Gibson back to the big screen
as his comedy “Daddy’s Home
2” scored a solid opening at
the box office. Along with a
new version of “Murder on
the Orient Express,” it con-
tributed to a robust weekend
for Hollywood.
“Thor: Ragnarok,” from
Walt Disney Co.’s Marvel Stu-
dios, was No. 1 at the box of-
fice in the U.S. and Canada,
with an estimated $56.6 mil-
lion in the U.S. and Canada.
After playing for two weeks
domestically and three over-
seas, the third film featuring
Chris Hemsworth as the comic
book god of thunder has
grossed $650.1 million world-
wide, making it another major
hit for Marvel.
“Daddy’s Home 2,” from Via-
com Inc.’s Paramount Pictures,
and “Murder” from 21st Cen-
tury Fox Inc.’s Twentieth Cen-
tury Fox, both performed better
than studios had been expect-
ing based on prerelease sur-
veys, debuting to $30 million
Radhika Jones to Succeed
Graydon Carter at Vanity Fair
BY JEFFREY A. TRACHTENBERG
Radhika Jones is expected to
be named editor in chief of
Condé Nast’s Vanity Fair maga-
zine this week, succeeding Gray-
don Carter, according to a per-
son familiar with the matter.
Ms. Jones, currently the edi-
torial director of the books de-
partment at the New York Times
and formerly a deputy managing
editor at Time Inc.’s Time maga-
zine, is expected to bring a
strong journalistic and cultural
background to Vanity Fair.
Vanity Fair is one of the
country’s pop-culture taste
makers and has been playing a
role in shaping the national
political conversation.
Mr. Carter, who helped
ous album, “1989,” which did
1.29 million in its first week in
2014, according to Nielsen
Music.
“The first-day numbers
have ‘Reputation’ poised for
the highest debut since Adele’s
opening week and should rank
amongst the highest first-
week openings of all time,”
said Nielsen Music analyst Da-
vid Bakula.
If so, “Reputation” would
be Ms. Swift’s fourth consecu-
tive album to sell more than
one million copies in its first
week. She is already the only
artist to have three albums hit
that mark.
Big Machine Records, her
label, declined to comment.
Ms. Swift waited the better
part of a year before allowing
any streaming services to
carry “1989.”
Three years later, however,
streaming has overtaken
download sales and CDs as the
most popular way to listen to
music, and it is unclear
whether it will be feasible to
keep the new album off
streaming services for as long.
SALES, IN MILLIONS
WEEKEND* CUMULATIVE % CHANGE
$56.6 $211.6 -54
$30 $30 --
$28.2 $28.2 --
$11.5 $39.9 -31
$3.4 $34.4 -48
and $28.2 million, respectively.
The first “Daddy’s Home”
opened to $38 million in 2015,
but that was over the Christ-
mas holiday weekend. The new
film is well positioned to draw
family audiences through
Thanksgiving weekend.
It is a much-needed hit for
Paramount, which is ranked
last among Hollywood’s major
studios in box office for the
sixth straight year and has
suffered from a series of dis-
appointments including “Sub-
urbicon” and “Transformers:
The Last Knight.”
The healthy start for the
film indicates many Americans
are willing to embrace Mel
Gibson as the star of a family
comedy, albeit playing a can-
tankerous grandfather.
“Daddy’s Home 2” marks Mr.
Gibson’s first starring role in a
studio-financed film in 15
years, after he was virtually
exiled for anti-Semitic, racist
and misogynistic remarks.
Mr. Gibson plays Mark
Wahlberg’s father and a comic
foil to John Lithgow as Will
Ferrell’s father.
make Vanity Fair one of Condé
Nast’s top titles, has served as
editor for 25 years.
In an interview in Septem-
ber, when he disclosed his
plans to leave Vanity Fair, Mr.
Carter said, “I’ve been think-
ing about taking a break over
the last year. I love my job,
this company, and my staff,
but I want to see if there is a
third act in my life.”
News of Ms. Jones’s expected
appointment was first reported
by Recode. Efforts to reach Ms.
Jones were unsuccessful.
Condé Nast, a unit of
closely held Advance Publica-
tions Inc., recently laid off an
estimated 80 staffers as part
of a restructuring of the or-
ganization.
Monday, November 13, 2017 | B5
This announcement is neither an offer to purchase nor a solicitation of an offer to sell Shares (as defined below). The Offer (as defined below) is made solely pursuant to the Offer to Purchase, dated November 13,
2017, and the related Letter of Transmittal, and any amendments or supplements to such Offer to Purchase or Letter of Transmittal. Purchaser is not aware of any state where the making of the
Offer is prohibited by any administrative or judicial action pursuant to any valid state statute. If Purchaser becomes aware of any valid state statute prohibiting the making of the Offer or the
acceptance of the Shares pursuant thereto, Purchaser will make a good faith effort to comply with that state statute or seek to have such statute declared inapplicable to the Offer. If, after
a good faith effort, Purchaser cannot do so, Purchaser will not make the Offer to, nor will tenders be accepted from or on behalf of, the holders of Shares in that state. Except as set
forth above, the Offer is being made to all holders of Shares. In any jurisdiction where the securities, “ blue sky” or other laws require the Offer to be made by a licensed broker
or dealer, the Offer will be deemed to be made on behalf of Purchaser by one or more registered brokers or dealers that are licensed under the laws of such jurisdiction.
Notice of Offer to Purchase
All Outstanding Shares of Common Stock and Series A Preferred Stock
of
Planet Payment, Inc.
at
$4.50 Per Share of Common Stock, Net in Cash,
and $13.725 Per Share of Series A Preferred Stock, Net in Cash,
by
Fintrax US Acquisition Subsidiary, Inc.,
an indirect wholly-owned subsidiary of
Franklin UK Bidco Limited
Fintrax US Acquisition Subsidiary, Inc., a Delaware corporation (“Purchaser”) and an indirect wholly-owned subsidiary of Franklin UK Bidco Limited,
a private limited company incorporated under the laws of England and Wales (“Parent”), is offering to purchase all outstanding shares of (i) common stock,
par value $0.01 per share (“Company Common Stock”), of Planet Payment, Inc., a Delaware corporation (the “Company”), at a price per share of $4.50 (such
price as it may be amended from time to time in accordance with the Merger Agreement, the “Common Stock Offer Price”), net to the seller in cash, without
any interest, but subject to any required withholding of taxes, and (ii) Series A Preferred Stock, par value $0.01 per share (“Company Series A Preferred
Stock” and together with the Company Common Stock, the “Shares”) of the Company, at a price per share of $13.725, equal to the Common Stock Offer
Price multiplied by the conversion ratio set forth in the Company’s Restated Certificate of Incorporation rounded to the nearest one-hundredth, which is
3.05 (such price as it may be amended from time to time in accordance with the Merger Agreement, the “Preferred Stock Offer Price”), net to the seller in
cash, without any interest, but subject to any required withholding of taxes, in each case upon the terms and subject to the conditions set forth in this Offer
to Purchase (together with any amendments or supplements hereto, the “Offer to Purchase”) and in the related Letter of Transmittal (together with any
amendments or supplements thereto, the “Letter of Transmittal ” and, together with the Offer to Purchase, the “Offer”). If your Shares are registered in your
name and you tender directly to Computershare Trust Company, N.A. (the “Depositary”), you will not be obligated to pay brokerage fees or commissions
or, subject to Instruction 6 of the Letter of Transmittal, transfer taxes on the purchase of Shares by Purchaser. If you hold your Shares through a broker,
dealer, commercial bank, trust company or other nominee you should check with such institution as to whether they charge any service fees.
The Offer is being made pursuant to the Agreement and Plan of Merger, dated as of October 26, 2017 (together with any amendments or supplements
thereto, the “Merger Agreement”), among Parent, Purchaser and the Company, pursuant to which, after the completion of the Offer and the satisfaction
or waiver of certain conditions, Purchaser will be merged with and into the Company, with the Company continuing as the surviving corporation (the
“Merger”). The Merger Agreement is more fully described in the Offer to Purchase.
THE OFFER AND WITHDRAWAL RIGHTS WILL EXPIRE AT 5:00 P.M., NEW YORK CITY TIME, ON
MONDAY, DECEMBER 18, 2017, UNLESS THE OFFER IS EXTENDED OR EARLIER TERMINATED.
The Offer is not subject to any financing condition. The Offer is, however, subject to the following conditions, among others:
• there being validly tendered and not validly withdrawn shares of Company Common Stock and Company Series A Preferred Stock that, considered
together with all other shares of Company Common Stock and Company Series A Preferred Stock (if any) beneficially owned by Parent and its
controlled affiliates (excluding any shares of Company Common Stock and Company Series A Preferred Stock tendered pursuant to guaranteed
delivery procedures that have not yet been received), represent one more share than 50% of the sum of (x) the total number of shares of Company
Common Stock outstanding at the time of the expiration of the Offer, plus (y) solely with respect to any shares of Company Series A Preferred
Stock that remain outstanding as of immediately prior to the acceptance for payment by Purchaser of the shares tendered into the Offer (but, for
the avoidance of doubt, without duplication with respect to Company Series A Preferred Stock that have converted into the right to receive shares
of Company Common Stock), the total number of shares of Company Common Stock into which such outstanding shares of Company Series A
Preferred Stock are convertible, plus (z) the total number of shares of Company Common Stock that the Company would be required to issue upon
conversion, settlement, exchange or exercise of all options, warrants, rights or securities outstanding at the time of the expiration of the Offer that are
convertible, exchangeable or exercisable into share of Company Common Stock (whether then outstanding or for which the conversion, settlement,
exchange or exercise date has already occurred, but in any event without duplication) (such condition, the “Common Stock Minimum Condition”);
• there being validly tendered and not validly withdrawn shares of Company Series A Preferred Stock that, considered together with all other shares
of Company Series A Preferred Stock (if any) beneficially owned by Parent and its controlled affiliates (excluding any shares of Company Series A
Preferred Stock tendered pursuant to guaranteed delivery procedures that have not yet been received), represent one more share than 50% of the sum
of the total number of shares of Company Series A Preferred Stock that remain outstanding as of immediately prior to the acceptance for payment
by Purchaser of the shares tendered into the Offer (but, for the avoidance of doubt, without duplication with respect to Company Series A Preferred
Stock that have converted into the right to receive shares of Company Common Stock) (such condition, the “Preferred Stock Minimum Condition,”
and together with the Common Stock Minimum Condition, the “Minimum Tender Condition”);
• the applicable waiting period (and any extension thereof) under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, including
the rules and regulations promulgated thereunder, having expired or been terminated;
• the Company having performed in all material respects its obligations required to be performed prior to the expiration time of the Offer under the
Merger Agreement, and any failure to perform having been cured prior to the expiration time of the Offer;
• there not being in effect any judgment, order, writ, injunction or decree (whether temporary, preliminary or permanent) by a court of competent
jurisdiction restraining, enjoining or otherwise prohibiting consummation of the Offer; and
• other customary conditions.
A more detailed discussion of the conditions to consummation of the Offer is contained in the Offer to Purchase.
T H E BOA R D OF DIR EC TOR S OF T H E COM PA N Y U N A N I MOUSLY
RECOMMENDS THAT YOU TENDER ALL OF YOUR SHARES INTO THE OFFER.
After careful consideration, the Company’s board of directors (the “Company Board ”) unanimously (a) determined that the Merger Agreement, the
Offer, the Merger and the other transactions contemplated by the Merger Agreement, are advisable and in the best interests of the Company and the
Company’s stockholders; (b) elected that the Merger Agreement and the Merger contemplated thereby be expressly governed by and effected under
Section 251(h) of the Delaware General Corporation Law (the “DGCL”), and that the Merger be consummated as soon as practicable following the
consummation of the Offer; (c) approved and declared advisable the Merger Agreement, the Offer, the Merger and the other transactions contemplated
by the Merger Agreement in accordance with the requirements of the DGCL; and (d) resolved to recommend that the Company’s stockholders accept the
Offer and tender their Shares to Purchaser pursuant to the Offer.
The purpose of the Offer and the Merger is for Parent and its affiliates, through Purchaser, to acquire control of, and the entire equity interest in, the
Company. Following the consummation of the Offer, subject to the satisfaction or waiver of the conditions set forth in the Merger Agreement, Purchaser
intends to effect the Merger.
No appraisal rights are available to holders of Shares in connection with the Offer. However, if the Merger takes place, stockholders who have not
tendered their Shares in the Offer and who comply with applicable legal requirements will have appraisal rights under the DGCL.
Upon the terms and subject to the conditions of the Merger Agreement, in the event that Purchaser acquires more than 50% of the then outstanding
Shares pursuant to the Offer, the parties have agreed to take all necessary and appropriate action to cause the Merger to become effective, in accordance
with Section 251(h) of the DGCL, as promptly as reasonably practicable after such acquisition, without a meeting of the stockholders of the Company.
Subject to the terms of the Merger Agreement and to the extent permitted by applicable law, Purchaser expressly reserves the right to waive any
conditions to the Offer (provided that the Minimum Tender Condition described above may be waived only with the prior written consent of the
Company), or modify the terms of the Offer.
Subject to the provisions of the Merger Agreement and the applicable rules and regulations of the Securities and Exchange Commission, Purchaser
reserves the right, and under certain circumstances Purchaser may be required, to extend the Offer, as described in Section 1 of the Offer to Purchase.
Any extension, waiver or amendment of the Offer, or delay in acceptance for payment or payment, or termination of the Offer will be followed, as
promptly as practicable, by public announcement thereof, such announcement in the case of an extension to be issued not later than 9:00 a.m., New York
City time, on the next business day after the previously scheduled expiration time of the Offer in accordance with the public announcement requirements
of Rules 14d-4(d), 14d-6(c) and l4e-1(d) under the Exchange Act.
For purposes of the Offer, Purchaser will be deemed to have accepted for payment, and thereby purchased, Shares validly tendered, and not properly
withdrawn, prior to the expiration time of the Offer if and when Purchaser gives oral or written notice to the Depositary of Purchaser’s acceptance for
payment of such Shares pursuant to the Offer. Upon the terms and subject to the conditions of the Offer, payment for Shares accepted for payment
pursuant to the Offer will be made by deposit of the purchase price therefor with the Depositary, which will act as agent for the tendering stockholders for
the purpose of receiving payments from Purchaser and transmitting such payments to the tendering stockholders. Under no circumstances will interest
be paid on the Common Stock Offer Price or the Preferred Stock Offer Price for Shares, regardless of any extension of the Offer or any delay in
making payment for Shares.
In all cases, payment for Shares tendered and accepted for payment pursuant to the Offer will be made only after timely receipt by the Depositary of
(a) certificates for such Shares or timely confirmation of the book-entry transfer of such Shares into the Depositary’s account at The Depository Trust
Company (“DTC”) pursuant to the procedures set forth in Section 3 of the Offer to Purchase, (b) a Letter of Transmittal (or facsimile thereof), properly
completed and duly executed, with any required signature guarantees (or, in the case of a book-entry transfer, an Agent’s Message (as defined in Section 3
of the Offer to Purchase) in lieu of the Letter of Transmittal), and (c) any other documents required by the Letter of Transmittal.
Shares tendered pursuant to the Offer may be withdrawn at any time prior to the expiration time of the Offer. Further, if Purchaser has not accepted
Shares for payment by January 12, 2018, they may be withdrawn at any time prior to Purchaser’s acceptance for payment after that date. For a withdrawal
of Shares to be effective, a written or facsimile transmission notice of withdrawal must be timely received by the Depositary at one of its addresses set forth
on the back cover of the Offer to Purchase. Any notice of withdrawal must specify the name of the person having tendered the Shares to be withdrawn, the
number of Shares to be withdrawn and the name of the registered holder of the Shares to be withdrawn, if different from that of the person who tendered
such Shares. The signature(s) on the notice of withdrawal must be guaranteed by an Eligible Institution (as defined in the Offer to Purchase), unless such
Shares have been tendered for the account of any Eligible Institution. If Shares have been tendered pursuant to the procedures for book-entry transfer as
set forth in Section 3 of the Offer to Purchase any notice of withdrawal must specify the name and number of the account at DTC to be credited with the
withdrawn Shares. If certificates representing the Shares have been delivered or otherwise identified to the Depositary, the name of the registered owner
and the serial numbers shown on such certificates must also be furnished to the Depositary prior to the physical release of such certificates.
All questions as to the form and validity (including time of receipt) of any notice of withdrawal will be determined by Purchaser or Parent, in its
sole discretion, which determination will be final and binding. No withdrawal of Shares will be deemed to have been properly made until all defects
and irregularities have been cured or waived. None of Purchaser, Parent or any of their respective affiliates or assigns, the Depositary, the Information
Agent (listed below) or any other person will be under any duty to give notification of any defects or irregularities in any notice of withdrawal or incur
any liability for failure to give such notification. Withdrawals of tenders of Shares may not be rescinded, and any Shares properly withdrawn will be
deemed not to have been validly tendered for purposes of the Offer. However, withdrawn Shares may be retendered by following one of the procedures
for tendering Shares described in Section 3 of the Offer to Purchase at any time prior to the expiration time of the Offer.
The information required to be disclosed by paragraph (d)(1) of Rule 14d-6 under the Exchange Act is contained in the Offer to Purchase and is
incorporated herein by reference.
The Company has provided Purchaser with the Company’s stockholder list and security position listings for the purpose of disseminating the
Offer to holders of Shares. The Offer to Purchase and related Letter of Transmittal will be mailed to record holders of Shares whose names appear on
the Company’s stockholder list and will be furnished for subsequent transmittal to beneficial owners of Shares, to brokers, dealers, commercial banks,
trust companies and similar persons whose names, or the names of whose nominees, appear on the stockholder list or, if applicable, who are listed as
participants in a clearing agency’s security position listing.
The receipt of cash for Shares in the Offer or the Merger will be a taxable transaction for United States federal income tax purposes. Stockholders
should consult their own tax advisors as to the particular tax consequences of the Offer and the Merger to them. For a more complete description of
certain material U.S. federal income tax consequences of the Offer and the Merger, see Section 5 of the Offer to Purchase.
The Offer to Purchase, the related Letter of Transmittal and the Company’s Solicitation/Recommendation Statement on Schedule 14D-9
contain important information and should be read carefully and in their entirety before any decision is made with respect to the Offer.
Questions and requests for assistance may be directed to the Information Agent at its address and telephone number set forth below. Requests for
copies of the Offer to Purchase and the related Letter of Transmittal may be directed to the Information Agent or to brokers, dealers, commercial banks
or trust companies. Such copies will be furnished promptly at Purchaser’s expense. Purchaser will not pay any fees or commissions to any broker or dealer
or any other person (other than the Information Agent) for soliciting tenders of Shares pursuant to the Offer.
The Information Agent for the Offer is:
1290 Avenue of the Americas, 9th Floor
New York, NY 10104
Shareholders Call Toll-Free: (866) 431-2096
November 13, 2017
B6 | Monday, November 13, 2017 * *** THE WALL STREET JOURNAL.

BUSINESS & FINANCE

Bankers See Shift in Tone Study Finds Penalty

Raised Heart Patient
Trump’s new financial
regulation team takes
friendlier stance ‘Changing the tenor of Mortality Rates
toward the industry supervision will BY MELANIE EVANS passed. That dropped to 18.4%
after the penalties. Mortality
BY RYAN TRACY
probably actually be the The Affordable Care Act re- rates increased from 7.2% before
AND CHRISTINA REXRODE biggest part of what it quired Medicare to penalize hos- the ACA to 8.6% after the penal-
pitals with high numbers of ties, or about 5,400 additional
The Trump administration
is that I do’ heart-failure patients who re- deaths a year for Medicare ben-
has a strong message for the turned for treatment shortly af- eficiaries not in managed care
country’s bankers: You are not Randal Quarles ter discharge. New research plans.
the villain anymore. shows that penalty was associ- “CMS continuously monitors
President Donald Trump’s ated with fewer readmissions, the impact of the measures used
newly minted financial regula- but also higher rates of death in our programs, including input
tory team—growing in size among that patient group. from peer reviewed research
with recent confirmations—is The researchers said the and other sources,” said a
sounding a friendlier tone study results, being published in spokesman for the Centers for
than its predecessor, which re- JAMA Cardiology, can’t show Medicare and Medicaid Services,
ANDREW HARRER/BLOOMBERG NEWS

stricted the industry following cause and effect, but “support or CMS. “Studies like this are
the 2008 bank bailouts. the possibility that the [penalty] important inputs as we continu-
“Changing the tenor of su- has had the unintended conse- ously assess our programs.”
pervision will probably actu- quence of increased mortality in One author of the paper, Dr.
ally be the biggest part of what patients hospitalized with heart Gregg Fonarow, co-chief of the
it is that I do,” said Randal failure.” University of California, Los An-
Quarles, the Federal Reserve’s Few studies have looked at geles cardiology division, said he
regulatory chief, in maiden the possible unintended conse- would like to see CMS suspend
public remarks last week be- quences under the penalty, and review the heart failure
fore bankers in New York. which went into effect in Octo- penalty program.
After the financial crisis, for being too quick to impose of the shift in tone. James Di- million bonuses after America ber 2012 under a broad push by Others disagreed, citing re-
the credibility of financial harsh sanctions on banks mon, chief executive of J.P. went through the worst eco- Medicare to pay hospitals based search that has reached less
firms took a big hit among viewed as not meeting the le- Morgan Chase & Co., wrote in nomic year that it’s gone on how well they care for pa- worrying conclusions about the
regulators and lawmakers of gal requirements to lend in April that “it is an understate- through in—in decades.” tients, not strictly on the volume penalty. “I am not worried about
both parties, leading to poor communities. ment to say improvements The two presidents also as- of care they provide. Lowering it right now,” said Dr. Leora Hor-
stricter rules for the industry “My kid—[if] I told her that could be made. The regulatory sembled different financial readmission rates was seen as a witz, an associate professor of
and less influence over Wash- she had to study for her sci- environment is unnecessarily teams. Mr. Trump’s Treasury worthy goal for improving pa- population health and medicine
ington’s decisions about how ence test, but she always complex, costly and some- Secretary, Steven Mnuchin, at New York University.
the firms ran their businesses. failed, I don’t think she would times confusing.” worked on Wall Street and ran She co-wrote a study pub-
Mr. Quarles and other new study for her science test,” he In October, after a Treasury OneWest Bank, now part of lished in July in JAMA which
regulators have begun re-eval- said, explaining his approach. Department report recom- CIT Group Inc.
Rates are compared she said found “little to no” cor-
uating the resulting Wall “The same goes for a bank: mended rethinking rules that Among other Trump-ap- before the ACA relation between changes in how
Street rule book, but rewriting You want to incentivize them.” he and other bankers have pointed regulators, Mr. Quar- often heart failure patients were
rules takes time. In the near Mr. Noreika could be re- criticized, Mr. Dimon said: “I les gave banks legal advice
passed and after readmitted and how often they
term, one thing they can do is placed as soon as this week by think the Treasury did an ex- and invested in them, Mr. Nor- penalties took effect. died. The study used data for 2.9
change the posture the govern- Joseph Otting, a former ceptional job.” eika is a career banking lawyer million Medicare heart failure
ment takes in day-to-day inter- banker who is Mr. Trump’s “The amount of regulatory and Mr. Otting is a longtime patients hospitalized between
actions with financial firms. permanent nominee for the reform has been limited, but banker who worked alongside 2008 and 2014 and analyzed re-
One day after Mr. Quarles’s comptroller position. The Sen- the way that people are think- Mr. Mnuchin at OneWest. tient care during initial admis- admission rates for each individ-
remark, Keith Noreika, who ate is expected to hold a final ing about and interpreting it is By contrast, Mr. Obama’s sions and during follow-up care. ual hospital.
since May has served as acting vote on Mr. Otting’s nomina- better,” Terry Dolan, chief fi- comptroller, Thomas Curry, The new study analyzed data Dr. Horwitz said a few things
comptroller of the currency, tion in the coming days. nancial officer of U.S. Bancorp, was a longtime bank regulator. for 115,245 Medicare patients may explain the difference in re-
criticized Obama-era officials Bankers have taken notice said in a recent interview. His Fed regulatory chief, Dan- hospitalized for heart failure at sults from the latest work.
Mr. Trump set a new tone iel Tarullo, was a law profes- 416 hospitals between 2006 and Her study looked at readmis-
from the start. At a White sor. Treasury secretaries Tim- 2014. Hospitals chosen for the sion and mortality rates for each
ADVERTISEMENT House event with chief execu- othy Geithner and Jacob Lew study were part of a separate individual hospital, whereas the
tives days after taking office, spent much of their prior ca- American Heart Association ef- new study pooled patients at all

Legal Notices
To advertise: 800-366-3975 or WSJ.com/classifieds
he pointed to Mr. Dimon and
said “there is nobody better”
to give him regulatory advice.
In the early years of the
Obama administration, ten-
BANKRUPTCIES sions between banks and the
@1=A- ,A, B1O @C '@  president were far higher. In a
+' 9A DA,A 1 -=, = '+ 1' 9  ':=1  
reers in government.
Mr. Mnuchin’s banking ex-
perience helped him realize
early on that a change in regu-
latory personnel could have an
impact. In March, he promised
a group of community bankers
fort to reduce heart-failure read-
mission rates.
Researchers compared hospi-
tal readmission and mortality
rates before the Affordable Care
Act passed in 2010 and after
penalties took effect in late
participating hospitals into one
group and calculated the total
rate changes for the group.
She added that the new study
may reflect a rise in the overall
U.S. death rate for heart failure
in recent years. That may be be-
 -%

1 
 
2009 interview, President Ba- visiting the White House that 2012. cause hospitals increasingly ad-
= 2
'  = =11'D='1, =1   1   1
 7()> rack Obama rebuked “fat cat the administration intended to One in five heart failure pa- mit only the sickest patients
-
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bankers on Wall Street” who help them by “changing the tients returned to the hospital who are at a higher risk of dy-

  
  

   
  




 

  

    
 were “drawing down $10, $20 tone,” according to attendees. within 30 days before the ACA ing, she said.
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 counts: My grows of the accounts’ potential to ue to the HSA’s extra
   "   "      =  " A    #
"    
401(k) and a health-savings 40 tax advantages, each
  "          
  

  4         deliver tax-free retirement income.
# "  % "      4  
  " #
   % # 
B /"
  "  %      "  %         '  - 
account. dollar I put into my
2  3   ! 3  "  B   B  A , / " 
 < -"   667 D Many people overlook account will turn into $2.19
  , ," 655    1 6G656 $
 
"
'     -  === !   
D /    ,   O<: &  :: 6> 1   ,    1 6G656 $
 
HSAs as a retirement-savings Investments Cash after 20 years, assuming a
 (

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    >56 D   ,  655
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  , 
 ($'  % 3     vehicle because they are typ- 4% annual inflation-adjusted
: " ," !   !: " O - < D  :: 5  / % 1# C / 1C ically used to pay current 20 return, according to Van-
57G $
 
 $
!!-
 B 
       4     8 4   9  #  ( medical bills. But these ac- guard Group. By contrast, the
  %4 + =.)+ # C. #4 (5#"2"$ #! "4   @ ,  B /"

 "    D -  1          >5 D   ,  "  (> counts, which Congress au- same dollar will be worth
   1 6G656
; 2#! D%82(#"  #& A8%"  #$8#$ "  2#   

    thorized in 2003, come with just $1.64 after I take it out
       
  
   
  
        

more tax advantages than of a traditional 401(k) in two
  >    >          401(k)s and individual retire- 0 decades and pay income
@   0 >    :
 
7 E8""!  ,     /           %    ment accounts when used to 2006 ’07 ’08 ’09 ’10 ’11 ’12 ’13 ’14 ’15 ’16 ’17* ’18* ’19* taxes on the withdrawal.
  -    
    2 /#1 /"1 #%%!!"$  &4""!#"5 $F! 9!" #
999 4"4$% 4? #" 5#" !G /""1 !84""$ # E8! " 9""$  #"  5#" !
cover medical costs— *Projections (The example assumes a 25%
% ? 8! 4" *C**   58 8" )..  &2#& "22!  C)H+G  /"""1 3 %#22"$ whether now or in retire- Source: Devenir Group LLC THE WALL STREET JOURNAL. federal income-tax rate and
I)I,C.H,I.. 9""    ##&#  /1 ;  # ; 5"#  # (!??%;%98!% 8!
$ 5 +  9      =   %  # # E"    ment. And there are ways to ignores state tax.)

 "  E"   %   
             

 %    
       %  %   "   use them to create tax-free both an HSA and a 401(k) ductible, my company Even if I decide to tap my

 -             #      "    income in retirement. kick in the maximum to deposited $500 into my HSA to cover current medi-

%  $
 4   "   # 
2    = %   = *)*> 
   = %   9   
 )  -    65;   #  B "( Saving for medical costs both. HSA. I put in the $1,300 I cal bills, it is still worthwhile
%  ," 655    1     6G67)
6

 G  " "   # 4     %        
makes sense given that they saved on premiums by using to contribute, said Roy

F
  are a major expense in re- or a 401(k), the cur- the high-deductible plan in- Ramthun, a consultant who
tirement. A 65-year-old cou- rent annual limit is stead of the conventional specializes in high-deduct-
  
  
    
ple who retires today and $18,000 for people un- plan. Eventually, I added ible plans and HSAs. The
  '#( )* has no reason to expect an der age 50 and $24,000 for $2,050 more because I reason: The upfront tax de-

        #!   )+,)-)-. /01
 ! " #  "$  %&"$ /0 "23 &4""!&1 early death will need about older investors—numbers wanted to make the maxi- duction allows me to keep
  
   
   

     
      $265,000 to have a 90% that will rise to $18,500 and mum annual contribution al- the 39 cents a dollar I would
   
      
  
  
          chance of having enough for $24,500 in 2018. The annual lowed, which, for individu- otherwise have had to pay in
       

  
      
 "$
(!#"5 
 ! ""
 #

"


 

$%"
 %"
& %

Medicare premiums and the caps for HSAs are $3,400 for als, was $3,350 in 2016. In taxes.

'#( )* #!! 
"
% # 

$%"
 
  %
%
! 
 !   38% of medical costs Medi- individuals and $6,750 for 2017, I contributed the To withdraw money tax-

' (%
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  " %

  
*



" % # + )
"   *

 , -  # *
  ! . & 

#6"2"#
#78(%3 #9 "" 
 care doesn’t cover, according families in 2017 and $3,450 $3,400 individual limit. free from an HSA, you must
! 
/ 0
% 0  # 
1
#  
2
   3%
.  

#6"2"#  8
 % " %

 
 "$  %&"$ 4  
         
to the nonprofit Employee and $6,900 in 2018—plus The biggest payoff with use it for qualified expenses.
" %

 
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%"
& # 
 # 
5
 1
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  5-1-0- 66  Benefit Research Institute. those 55 or older can kick-in an HSA comes when the Those include not just medi-
 - 

#78(%3  &    
  
 
   


     
  
 
 
% $""  : " - (That amount doesn’t in- an extra $1,000. money set aside isn’t used cal bills but also dental and
7
+8 "%! 0   %

  
  
#

9 
2
 - : ! 2 - 
 ; # 
5
 1
 +8 "%! 0  # 
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 < % # 
, = 8 3
+,  clude dental and long-term- Those who can’t afford to for current medical bills and vision-care expenses, premi-
:

 
, = 8 
, = 8 /  <
%

   > -- "
  ?
 

 %
""   # 
@
    # 


#
A

  

% 
care expenses.) put the maximum in both instead compounds over ums for all types of Medi-

% $""  #"$- B 

% 9
  
0  !  

%
  #  The HSA “is the most tax- should first allocate enough time for use in retirement, care plans except Medigap,
           4      
    

% 9
  , 


 ! 
   ,% ,

 ! 
#!- favored savings vehicle in to their 401(k) to get the says Rob Austin, director of and a portion of long-term-
 
             !   "    4   
#   "    "C     4      #  $
 
 %  the tax code,” says Leo Ache- company match and then research at 401(k) record- care insurance premiums.
&  ' !()**    "C  "    + ,  D4    - "
! ?
% % 
  


  
0
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9 
2
 - : ! 2 - 5
 1

son, a senior analyst at switch to the HSA (and later keeper Alight Solutions LLC. If you use your HSA for
+8 "%! 2
  % 

 "  <  @ 8 E F ,
@ /& 
' B

 
, = 8 Morningstar Inc. who wrote return to the 401(k) if they “The longer you let HSA nonmedical expenses, you
=  B> 
: %)  ?  2- .
 
% # 
%
" 
  



      
  $ 4   +  
 %   /    G    a recent report about HSAs. can save more), experts say. money grow, the more valu- will owe income tax on your
" 
 
A
 %
 
0"
& 0
 "   

# % 
%
    

" 
   0  ! 
% 
% %
! #!   #%8#223 %"5& 3 #%' ; '4  2#
As with a traditional To open an HSA, you able it becomes.” distributions—and a 20%
'# <.. (4 /(5#"2"$ #! "41  %4 ) =.)+- # 
"
 (
%  
! 401(k) or IRA, an HSA allows must be covered by an HSA- To see why, consider my penalty if you are younger
4  %   "          !   # " "     

        
  4  
  " #  %   you to set aside money with- qualified health-insurance approach: For the sake of a than 65.
!  %%
 
+8 "%! 0 0 ?
% % 0
*  1!
 ,% % 
%%

 #  

+8 "%! 0 0 ,


 ">HH
%#-!-% -  @B0?   ",  

A
 out paying federal or state plan. Among other things, simple, round number, let’s If you stockpile receipts

 

 %
  
   %  ?  F  
-, I " 8-%  J 
/&$/-
income taxes on it. Money in the plan must have a de- assume I have a $75,000 sal- for past medical costs you
7 %

    ##
# 
# 
% 
  
5
 1
- 1
% 
 !  
HSAs grows tax-free and, if ductible of at least $1,300 ary. That means that after paid out of pocket since es-
##

     
5
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'
" # 
  

5-1-
,"   *))   1 ' K  &L ,      4   used now—or later—for for individuals and $2,600 paying federal income tax at tablishing the HSA, you can


! "  # ! ##
  %%  " % ##
 # 
% 
  
5
 1
-

medical expenses, can be for a family, thresholds that a 25% rate, New York state file for reimbursement in re-
     
      #    C  $ 4     
  
" 2 ' K  &L , 134!+2 5G5*564555(7 8 3

% 3 E withdrawn tax-free. In con- rise to $1,350 and $2,700 in income tax at a 6.45% rate tirement. Doing this will al-
&  &9 1  +1))6G 8 4 ' ' ,% : 1   (;G* 8
' ' < &  +  : 1  !(6GG57* 8  ( ! , 33: 33: :9  trast, with a traditional 2018. and FICA tax (which fi- low you to supplement your
331 
 2&"$ ""! ' - 1  D===4=M : 1  !(6>GGG 8 >?@
3

% <    
? :9 - * /;  > 3

% <    


401(k) or IRA, income tax is I signed up for such a nances Social Security and retirement income tax-free
:9 - * //  @  ( ! , 3< .H?  3< . 
=.=) ""! paid on withdrawals. plan in 2016. To help build a Medicare) at 7.65%, I get to in years in which tapping
' '  - +  : 1  !(677GG* 8 '-1 = &9 1  +1 )655G$
  ' - 1  ,$ &9 1  +1)>776G 8 >  3< 7! . :9 - Because of the HSA’s tri- buffer against my plan’s keep 61 cents of each addi- other accounts would push
* &&.'  #3 >  ( ! , 33<* 3<   3< . 
=.== ""!N 



9  ?
  ?
   ?
 
( !
#

  
  8(  ple tax advantage, experts $6,800 out-of-pocket spend- tional dollar I earn—not you into a higher tax bracket
 !- 7
  
 # 

 <
  
0"
& 0
 33:  
@


  4      !    %    : G; 4 5  56 ,    
recommend that those who ing cap for in-network ser- great. By saving in an HSA, or expose you to higher

2
  2 + ) - can afford to contribute to vices, including a $2,800 de- I can shelter all 100 cents of Medicare premiums.
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B8 | Monday, November 13, 2017 THE WALL STREET JOURNAL.

MARKETS DIGEST
Dow Jones Industrial Average S&P 500 Index New to the Market
23422.21 t 116.98, or 0.50% last week Trailing P/E ratio 21.17
Last Year ago
20.08 2582.30 t 5.54, or 0.21% last week Trailing P/E ratio 24.42 23.99
Last Year ago
Public Offerings of Stock
High, low, open and close for each of P/E estimate * 19.22 17.66 High, low, open and close for each of P/E estimate * 19.37 18.05
Dividend yield 2.17 2.52 Dividend yield 1.92 2.17
IPOs in the U.S. Market
the past 52 weeks the past 52 weeks
All-time high 23563.36, 11/08/17 All-time high: 2594.38, 11/08/17 Initial public offerings of stock expected this week; might include some
offerings, U.S. and foreign, open to institutional investors only via the
Current divisor 0.14523396877348
Rule 144a market; deal amounts are for the U.S. market only
24000 2575 Symbol/ Pricing
Week's high Expected primary Shares Range($)
pricing date Filed Issuer/business exchange (mil.) Low/High Bookrunner(s)
DOWN UP 23000 65-day moving average 2500 11/13 10/16 Workspace Property Trust WSPT 39.0 12.00/ GS, JPM, BofA ML,
t

Monday's open Friday's close

Real estate investment N 15.00 KeyBanc,
trust. Barclays, Citi,
Friday's close Monday's open BMO Cptl Mkts,
t

22000 2425 Capital One Fincl,

JMP Sec
Week's low 11/14 10/18 SendGrid SEND 7.7 13.50/ MS, JPM
21000 2350 Operator of a cloud based N 15.50
customer communication
platform.
20000 2275 11/15 10/20 Arsanis ASNS 3.1 15.00/ Citi, Cowen & Co,
Provider of healthcare Nq 17.00 Piper Jaffray
65-day moving average services.
200-day moving average 2200 11/15 10/20 Jianpu Technology JT 9.0 8.50/ GS, MS, JPM
19000
Operator of a website for N 10.50
200-day moving average discovery &
recommendation of
financial products.
18000 2125
11/16 10/23 Bluegreen Vacations BXG 6.5 16.00/ Stifel, Credit Suisse, ,
Bars measure the point change from Monday's open Acquires, develops, N 18.00 BofA ML,
markets & sells SunTrust
17000 2050 recreational land,
N D J F M A M J J A S O N residential land & vacation
N D J F M A M J J A S O N ownership resorts.
Primary 11/16 9/11 Molino Canuelas SACIFIA MOLC 58.5 14.00/ JPM, UBS, HSBC,
NYSE weekly volume, in billions of shares market Composite
t
t

Flour, premixes, oil, pasta, N 17.00 Itau BBA

30
Financial Flashback crackers and biscuits
producer, wholesaler and
20 The Wall Street Journal, Nov. 13, 2009 exporter.

10 11/16 10/20 Sailpoint Technologies SAIL 20.0 9.00/ MS, Citi, Jefferies,
Germany, the biggest economy in Europe, says quarterly Developer of enterprise N 11.00 RBC Cptl Mkts
0 growth was 0.7%, helping to pull the entire eurozone out software focusing on
identity and access
N D J F M A M J J A S O N of its two-year-old recession. management.
Weekly P/E data based on as-reported earnings from Birinyi Associates Inc. 11/16 10/23 scPharmaceuticals SCPH 6.4 14.00/ Jefferies, Leerink Prtnrs,
Developer of Nq 16.00 BMO Cptl Mkts
pharmaceutical products
Major U.S. Stock-Market Indexes Nasdaq Composite for subcutaneous delivery.

Latest Week 52-Week % chg t 13.50, or -0.20% 11/16 10/19 Stitch Fix SFIX 10.0 18.00/ GS, JPM, Barclays,
High Low Close Net chg % chg Low Close (l) High % chg YTD 3-yr. ann. Software-E-Commerce Nq 20.00 RBC Cptl Mkts,
Dow Jones
last week company operating a Piper Jaffray,
personal shopping Stifel, W. Blair
platform.
Industrial Average 23602.12 23310.02 23422.21 -116.98 -0.50 18847.66 l 23563.36 24.3 18.5 10.0
Transportation Avg 9766.80 9484.91 9501.36 -253.64 -2.60 8578.65 l 10038.13 10.8 5.1 1.6 Lockup Expirations
6780
Utility Average 761.54 747.75 756.95 3.52 0.47 625.44 l 759.59 20.6 14.8 7.7
Below, companies whose officers and other insiders will become eligible
Total Stock Market 26882.68 26532.64 26704.08 -84.92 -0.32 22440.45 l 26830.6 19.0 14.7 8.0
6740
to sell shares in their newly public companies for the first time. Such
Barron's 400 687.98 672.91 678.94 -7.27 -1.06 566.59 l 691.56 19.8 12.9 7.9 sales can move the stock’s price.
Nasdaq Stock Market Lockup Offer Offer amt Through Lockup
6700
Nasdaq Composite 6795.52 6687.28 6750.94 -13.50 -0.20 5218.40 l 6789.12 28.9 25.4 13.2 expiration Issue date Issuer Symbol price($) ($ mil.) Friday (%) provision

Nasdaq 100 6346.98 6248.29 6309.07 13.48 0.21 4702.04 l 6345.81 32.8 29.7 14.7 Nov. 13 May 17, ’17 Bright Scholar Education Hldgs BEDU 10.50 181.1 103.7 180 days
6660 Nov. 19 May 23, ’17 SMART Global Hldgs SGH 11.00 67.1 168.6 180 days
Standard & Poor's 3 6 7 8 9 10
Sources: Dealogic; WSJ Market Data Group
500 Index 2597.02 2566.33 2582.30 -5.54 -0.21 2164.20 l 2594.38 19.3 15.3 8.2 November
MidCap 400 1845.20 1814.98 1825.75 -10.23 -0.56 1562.99 l 1843.36 16.8 9.9 8.4 DJ US TSM
905.83 886.07 893.77 -7.11 -0.79 781.84 l 918.72 14.3 6.7 9.5
IPO Scorecard
SmallCap 600 t 84.92, or -0.32% Performance of IPOs, most-recent listed first
Other Indexes last week
% Chg From % Chg From
Russell 2000 1501.49 1463.49 1475.27 -19.64 -1.31 1282.39 l 1512.09 15.0 8.7 7.7 Company SYMBOL Friday3s Offer 1st-day Company SYMBOL Friday3s Offer 1st-day
NYSE Composite 12415.96 12268.07 12322.60 -50.46 -0.41 10652.24 l 12430.52 15.7 11.4 4.2 IPO date/Offer price close ($) price close IPO date/Offer price close ($) price close
Value Line 542.54 534.66 537.99 -2.14 -0.40 484.80 l 545.98 11.0 6.3 2.7 26800 Bandwidth 21.19 6.0 ... CBTX 29.12 12.0 1.4
BAND Nov. 10/$20.00 CBTX Nov. 8/$26.00
NYSE Arca Biotech 4206.13 4058.16 4088.06 -119.16 -2.83 3075.02 l 4304.77 21.0 32.9 7.2
Erytech 24.75 6.4 ... Four Seasons Edu 10.00 ... 5.3
NYSE Arca Pharma 539.92 529.99 533.09 -4.02 -0.75 463.78 l 560.52 8.1 10.7 0.03 26700 ERYP Nov. 10/$23.26 FEDU Nov. 8/$10.00
KBW Bank 102.23 97.05 97.59 -4.53 -4.44 82.67 l 102.31 18.1 6.3 10.0 PPDAI Grp 13.08 0.6 ... InflaRx 15.00 ... 0.1
PHLX§ Gold/Silver 82.95 80.55 80.60 -0.12 -0.15 73.03 l 96.72 3.3 2.2 7.4 PPDF Nov. 10/$13.00 IFRX Nov. 8/$15.00
26600
PHLX§ Oil Service 142.86 135.37 140.98 6.09 4.52 117.79 l 192.66 -10.0 -23.3 -16.9 Apellis Pharmaceuticals 14.00 ... –0.2 Metropolitan Bank 36.99 5.7 –0.6
0.24 l APLS Nov. 9/$14.00 MCB Nov. 8/$35.00
PHLX§ Semiconductor 1321.90 1278.69 1303.06 3.09 832.08 1321.13 55.6 43.8 26.6
l 26500 Sogou 13.85 6.5 2.6 Meridian Bank 18.25 7.4 ...
CBOE Volatility 12.19 9.29 11.29 2.15 23.52 9.14 16.04 -20.3 -19.6 -3.8 SOGO Nov. 9/$13.00 MRBK Nov. 7/$17.00
3 6 7 8 9 10

Philadelphia Stock Exchange Sources: SIX Financial Information; WSJ Market Data Group November
Sources: WSJ Market Data Group; FactSet Research Systems

International Stock Indexes Commodities and Other Stock Offerings

Latest Week 52-Week Range YTD
Currencies Secondaries and follow-ons expected this week in the U.S. market
Last Week YTD
Region/Country Index Close % chg Low Close High % chg
Close Net chg %Chg % chg Symbol/
World The Global Dow 2963.38 –0.43 2428.04 • 2984.71 17.1
DJ Commodity 615.94 9.43 1.56 8.58
Primary Amount Friday’s
DJ Global Index 384.68 –0.30 315.49 • 386.89 18.0
TR/CC CRB Index 191.65 2.27 1.20 -0.45
Expected Issuer/Business
Nov. 13 Senestech
exchange ($mil.)
SENS 10.8
price ($) Bookrunner(s)
2.65 Roth Cptl Ptnrs
DJ Global ex U.S. 259.14 –0.35 206.73 • 260.93 21.1
Crude oil, $ per barrel 56.74 1.10 1.98 5.62 Chemicals Nq
Americas DJ Americas 620.55 –0.21 520.49 • 623.60 14.8
Natural gas, $/MMBtu 3.213 0.23 7.67 -13.72 Nov. 15 MPM Holdings MPMH 350.0 n.a. JPM, GS
Brazil Sao Paulo Bovespa 72165.64 –2.37 57110.99 • 76989.79 19.8
Gold, $ per troy oz. 1272.40 5.90 0.47 10.64
Chemicals N
Canada S&P/TSX Comp 16039.26 0.12 14555.41 • 16131.79 4.9
Mexico S&P/BMV IPC 48028.30 –1.04 44364.17 • 51713.38 5.2 U.S. Dollar Index 94.39 -0.55 -0.58 -7.65
Off the Shelf
Chile Santiago IPSA 4091.58 –1.71 3137.71 • 4255.93 26.9 WSJ Dollar Index 87.58 -0.38 -0.43 -5.77
“Shelf registrations” allow a company to prepare a stock or bond for
EMEA Stoxx Europe 600 388.69 –1.86 337.50 • 396.77 7.5 Euro, per dollar 0.8573 -0.0041 -0.47 -9.82
sale, without selling the whole issue at once. Corporations sell as
Stoxx Europe 50 3177.52 –1.84 2810.21 • 3276.11 5.5 Yen, per dollar 113.54 -0.53 -0.46 -2.96
conditions become favorable. Here are the shelf sales, or takedowns,
Eurozone Euro Stoxx 390.90 –2.28 323.64 • 400.44 11.6 U.K. pound, in dollars 1.32 0.0116 0.89 6.85 over the last week:
Euro Stoxx 50 3593.76 –2.61 3015.13 • 3697.40 9.2
52-Week Takedown date/ Deal value Registration
Austria ATX 3393.23 –0.50 2480.75 • 3445.23 29.6 Low Close(l) High % Chg Issuer/Industry Registration date ($ mil.) (mil.) Bookrunner(s)
Belgium Bel-20 4026.26 –2.10 3426.21 • 4118.51 11.6
DJ Commodity 532.01 616.46 15.54 Atento Nov. 9 $110.7 $200.0 MS, Credit Suisse, Itau BBA,
France CAC 40 5380.72 –2.49 4489.27 • 5517.97 10.7 l
Professional Services Aug. 21,317 RW Baird & Co,
Germany DAX 13127.47 –2.61 10513.35 • 13478.86 14.3 TR/CC CRB Index 166.50 l 195.14 6.04 Barrington Research, GS
Greece Athex Composite 734.12 –3.86 578.17 • 858.08 14.1 Crude oil, $ per barrel 42.53 l 57.35 30.71 SRC Energy
Oil & Gas
Nov. 8
May 11,315
$280.0 ... Credit Suisse, JPM,
SunTrust, Citi
Israel Tel Aviv 1417.35 –0.72 1363.50 • 1478.96 –3.6 Natural gas, $/MMBtu 2.56 l 3.93 22.68
Italy FTSE MIB 22560.79 –1.97 16217 • 23046 17.3
Gold, $ per troy oz. 1127.80 l 1346.00 4.00
Taylor Morrison Home
Construction/Building
Nov. 8
March 22,317
$231.0 ... Citi, MS
Netherlands AEX 547.32 –1.41 445.41 • 555.22 13.3
Portugal PSI 20 5301.70 –1.25 4370.84 • 5475.67 13.3 U.S. Dollar Index 91.35 l 103.25 -4.65 Arbor Realty Trust
Real Estate/Property
Nov. 8
July 15,316
$125.0 $500.0 JPM, JMP Sec,
BofA ML
Russia RTS Index 1156.74 4.27 960.32 • 1195.61 0.4 WSJ Dollar Index 84.49 l 93.56 -2.31
South Africa FTSE/JSE All-Share 59776.12 0.23 48935.90 • 60182.60 18.0
Euro, per dollar 0.83 l 0.96 -6.93
James River Group HoldingsNov. 8
Insurance Jan. 7,316
$117.0 $715.8 MS
Spain IBEX 35 10092.70 –2.56 8607.1 • 11135.4 7.9
Yen, per dollar 106.68 l 118.18 6.43
Sweden SX All Share 582.08 –3.02 504.44 • 600.20 8.9 Allegheny Technologies
Metal & Steel
Nov. 7
May 15,315
$408.0 ... GS
Switzerland Swiss Market 9134.16 –2.02 7741.82 • 9322.05 11.1 U.K. pound, in dollars 1.20 l 1.36 4.75
U.K. FTSE 100 7432.99 –1.68 6730.43 • 7562.28 4.1 AAM
Auto/Truck
Nov. 7
March 30,317
$263.3 ... DB

Asia-Pacific Real-time U.S. stock

WSJ quotes are available on OneMain Holdings Nov. 7 $260.0 ... MS

Australia S&P/ASX 200 6029.40 1.17 5326.2 • 6049.4 6.4 Finance Nov. 7,317
China Shanghai Composite 3432.67 1.81 3052.79 • 3432.67 10.6 WSJ.com. Track most-
.COM Voyager Therapeutics Nov. 7 $54.0 $250.0 MS, Cowen & Co
Hong Kong Hang Seng 29120.92 1.81 21574.76 • 29136.57 32.4 active stocks, new Healthcare Dec. 1,316
India S&P BSE Sensex 33314.56 –1.10 25765.14 • 33731.19 25.1 highs/lows, mutual
Redhill Biopharma Nov. 7 $22.5 $120.0 Cantor Fitzgerald & Co,
Japan Nikkei Stock Avg 22681.42 0.63 17374.79 • 22937.60 18.7 funds and ETFs. Healthcare Feb. 25,316 Nomura
Malaysia FTSE Bursa Malaysia KLCI 1742.28 0.08 1616.64 • 1792.35 6.1 Plus, get deeper money-flows data and Apollo Commercial Real Estate FinanceNov. 6 $115.6 ... MS, BofA ML,
Singapore Straits Times 3420.10 1.12 2787.27 • 3423.91 18.7 email delivery of key stock-market Real Estate/Property May 7,315 Citi, JPM
South Korea Kospi 2542.95 –0.59 1963.36 • 2557.97 25.5 data. Chatham Lodging Trust Nov. 6 $109.5 ... Barclays
Taiwan Weighted 10732.67 –0.63 8931.03 • 10840.34 16.0
All are available free at Real Estate/Property Jan. 4,317
Source: SIX Financial Information;WSJ Market Data Group WSJMarkets.com KNOT Offshore Partners Nov. 6 $65.7 $943.2 BofA ML
Transportation May 26,317

Consumer Rates and Returns to Investor Benchmark Yields and Rates Public and Private Borrowing
U.S. consumer rates Selected rates Treasury yield curve Forex Race Treasurys
A consumer rate against its 5-year CDs Yield to maturity of current bills, Yen, euro vs. dollar; dollar vs.
major U.S. trading partners Monday, November 13 Tuesday, November 14
benchmark over the past year notes and bonds
Bankrate.com avg†: 1.49% Auction of 13 and 26 week bills; Auction of 4 week bill;
Barclays 2.35% 3.75% 10% announced on November 9; settles on November 16announced on November 13; settles on November 16
Five-year CD yields 1.50%
t Wilmington, DE 888-720-8756 Thursday, November 16
3.00 5 WSJ Dollar index
EverBank 2.35%
s s
1.00 Euro Auction of 10 year TIPS;
t Jacksonville, FL 855-228-6755 2.25 0 announced on November 9; settles on November 30
Federal-funds 0.50 Home Savings Bank 2.35% Friday
t

target rate 1.50 –5

Salt Lake City, UT 801-487-0811 Public and Municipal Finance
0.00 Synchrony Bank 2.35% 0.75 –10 s Yen
Deals of $ 150 million or more expected this week
One year ago
t

Morristown, NJ 800-903-8154 Final Total Rating Bookrunner/

–0.50 0.00 –15 Sale maturity Issuer ($mil.) Fitch Moody’s S&P Bond Counsel(s)
D J FMAM J J A S O N Goldman Sachs Bank USA 2.40% 1 3 6 1 2 3 5 710 30
New York, NY 2017
2017 855-730-7283 month(s) years Nov. 14 Aug. 1, 2034 Washington 506.4 N.R. N.R. N.R. Preliminary/
K&L Gates LLP
Yield/Rate (%) 52-Week Range (%) 3-yr chg maturity
Interest rate Last (l)Week ago Low 0 2 4 6 8 High (pct pts) Sources: Ryan ALM; Tullett Prebon; Thomson Reuters; WSJ Market Data Group
Nov. 14 May 1, 2038 Wisconsin 277.7 N.R. N.R. N.R. Preliminary/
Federal-funds rate target 1.00-1.25 1.00-1.25 0.25 l 1.25 1.00 Foley & Lardner
Prime rate* 4.25 4.25 3.50 l 4.25 1.00
Corporate Borrowing Rates and Yields
Nov. 17 prelim. NYC Municipal 400.0 N.R. N.R. N.R. Barclays/
Libor, 3-month 1.41 1.39 0.91 l 1.41 1.18 Spread +/- Treasurys, Water Fin Auth Orrick H & S
Yield (%) in basis pts, 52-wk Range Total Return
Money market, annual yield 0.32 0.33 0.26 l 0.36 -0.10 Bond total return index Last Wk ago Last Low High 52-wk 3-yr
Five-year CD, annual yield 1.49 1.47 1.19 l 1.49 -0.06 Nov. 17 prelim. New Jersey 183.9 N.R. N.R. N.R. M. Stanley/—
10-yr Treasury, Ryan ALM 2.397 2.343 -0.36 1.78 Educational
30-year mortgage, fixed† 3.88 3.92 3.73 l 4.33 -0.14 Facs Au
DJ Corporate 3.172 3.059 3.49 3.75
15-year mortgage, fixed† 3.25 3.24 2.99 l 3.50 0.05
Aggregate, Barclays Capital 2.670 2.600 38 35 47 2.01 2.36 Nov. 17 prelim. Ohio Air 210.0 N.R. N.R. N.R. BoA Merrill/—
Jumbo mortgages, $424,100-plus† 4.23 4.29 4.21 l 4.88 -0.07
High Yield 100, Merrill Lynch 5.572 5.240 350 307 477 7.974 3.787 Quality Dev
Five-year adj mortgage (ARM)† 3.48 3.46 3.20 l 4.03 -0.13 Authority
Fixed-Rate MBS, Barclays 2.910 2.840 25 11 34 1.13 2.06
New-car loan, 48-month 3.01 3.01 2.85 l 3.36 -0.23
Muni Master, Merrill 2.000 1.984 10 -4 18 2.876 2.768
HELOC, $30,000 4.48 5.19 4.48 l 5.30 0.12 Nov. 17 prelim. South Jersey 255.0 N.R. N.R. N.R. Citi/—
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 5.662 5.532 324 303 407 7.147 5.485 Port
banks.† Excludes closing costs. Source:Thomson Reuters/Ipreo
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
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
THE WALL STREET JOURNAL. * * Monday, November 13, 2017 | B9

BANKING & FINANCE

Bonuses
SEC Watchdog Faces Complaints For Bankers
BY JEAN EAGLESHAM

The watchdog for the Se-

Counsel’s Agency the office declined to comment.
Mr. Hoecker, 60 years old,
The whistleblowers’ con-
cerns focus on how Mr. Hoe-
cker handled their complaints.
On Upswing
curities and Exchange Com- Probes Allegations was appointed as the SEC Inspectors general are meant BY TELIS DEMOS
mission, who encourages watchdog in 2013. He also serves to encourage whistleblowing.
staff at the top securities as chairman of the investigations The whistleblowers allege they Banker bonuses may fol-
regulator to blow the whistle The Office of Special Counsel, committee of the Council of the instead suffered retaliation low stock prices higher this
on misconduct and fraud, is whose mission is to protect Inspectors General on Integrity and that the internal investi- year.
himself the subject of com- federal whistleblowers, is and Efficiency, which represents gation wasn’t sufficiently in- For the first time in four
plaints by several whistle- investigating the allegations from more than 70 inspectors general dependent to be fair. years, year-end bonuses for
SECURITIES AND EXCHANGE COMMISSION

blowers. at least two employees working across the federal government. The SEC Office of Inspector bankers in 2017 are set to
Carl Hoecker, the SEC in- for SEC Inspector General Carl The council earlier this year General internal probe was grow over the prior year, ac-
spector general, is tasked with Hoecker , according to people said it had reviewed the initially jointly led by two se- cording to consulting firm
rooting out malpractice at the familiar with the matter. whistleblowers’ allegations of nior officials in the office, in- Johnson Associates Inc.
agency. His team investigates The office has the power to retaliation by Mr. Hoecker and cluding a senior investigator Overall, incentive pay is ex-
alleged misconduct by SEC of- prosecute cases before an decided not to take any action, who hired and supervised the pected to rise 5% to 10%,
ficials, ranging from insider independent board, which can according to documents seen by two employees at the center of Johnson’s survey found.
trading to expenses fraud. The order agencies to pay The Wall Street Journal. A the complaints, the people fa- While bankers still tend to
office’s website highlights pro- compensation to harmed spokesman for the council miliar with the matter said. outearn the average Ameri-
tections for SEC employees employees. A spokeswoman for declined to comment. The investigator helped inter- can by many times, their bo-
who disclose evidence of Inspector General Carl Hoecker view the complainants and re- nuses have been under pres-
waste, fraud or abuse. fer the issue to prosecutors, sure since the financial
At least two employees request for comment. The allegations center on had an inappropriate relation- according to documents ob- crisis, thanks both to new
working for Mr. Hoecker have The whistleblowers also re- potential time and atten- ship, but noted that “the su- tained under public-records compensation guidelines by
filed complaints to a different ported the allegations to Sen. dance fraud by a supervisor pervisor created the appear- requests. regulators and banks’
federal whistleblower-protec- Chuck Grassley (R., Iowa), in the inspector general’s of- ance” of such a relationship, Mr. Hoecker also appointed broader drop in profitability.
tion agency, alleging that he chairman of the bipartisan fice and a junior subordinate. according to a public report one of the two employees un- The jump this year in part
and his senior staff retaliated Senate Whistleblower Protec- The complainants said the earlier this year that didn’t der investigation to help coor- reflects how banks are trying
against them for calling out tion Caucus, which focuses on two employees regularly dis- dinate a review of procedures to evolve. In addition to
misconduct within the inspec- laws and other issues affecting appeared together for several in the inspector general’s of- slashing costs like pay, they
tor general’s office, according whistleblowers. A spokesman hours during workdays and fice, according to documents are also aiming to get bigger
to people familiar with the for Mr. Grassley said he is engaged in inappropriate
The allegations reviewed by the Journal. The in the steadier, more tradi-
matter and documents re- “looking into the matter, and conduct in the office. Neither center on potential review, overseen by the in- tional parts of the business,
viewed by The Wall Street his office intends to reach out of the two employees re- spector general, removed lan- like advising on mergers and
Journal. to the whistleblowers in ques- sponded to requests for com-
time and attendance guage designed to prevent arranging loans to people
Raphael Kozolchyk, a tion to see what can and ment. fraud. conflicts of interest affecting and businesses. Bankers who
spokesman for the SEC Of- should be done.” The SEC Office of Inspector internal investigations, such as work in those units are ex-
fice of Inspector General, The whistleblower-retalia- General referred the com- allegedly happened in this pected to see the biggest
said “a number of the claims tion allegations stem from plaints to a federal prosecutor, case, according to the docu- jumps in bonuses. Bankers
contain significant factual in- complaints made to Mr. who declined to pursue the name the individuals con- ments. who work on companies’
accuracies, while others are Hoecker last year by at least case, according to documents cerned. The complaints additionally debt and stock offerings are
grossly misleading.” He three officials in his office. reviewed by the Journal. The The report said the conduct allege that Mr. Hoecker, whose likely to get 15% to 20% more
added that the office The complaints allege miscon- office’s own civil internal in- had been addressed by man- office is by law independent in incentive pay, Johnson’s
does “not comment on ongo- duct by two of their fellow vestigation of the complaints agement with the two individ- from the SEC, regularly refers survey found. Commercial
ing personnel matters.” Mr. employees, the people familiar found insufficient evidence to uals through remediation to the commissioners who run and retail bankers will be up
Hoecker didn’t respond to a with the matter said. conclude the two employees plans. the agency as his “bosses.” 5% to 10%.

Closed-End Funds | WSJ.com/funds

Listed are the 300 largest closed-end funds as 52 wk 52 wk Prem12 Mo Prem12 Mo Prem12 Mo
measured by assets. Prem Ttl Prem Ttl Fund (SYM) NAV Close /Disc Yld Fund (SYM) NAV Close /Disc Yld Fund (SYM) NAV Close /Disc Yld
Closed-end funds sell a limited number of shares and Fund (SYM) NAV Close /Disc Ret Fund (SYM) NAV Close /Disc Ret
invest the proceeds in securities. Unlike open-end BlackRockDurInco Tr BLW 17.04 15.95 -6.4 7.8 PIMCO Income Opportunity PKO NA 26.02 NA 9.9 Putnam Tr PMM 8.00 7.49 -6.4 5.4
funds, closed-ends generally do not buy their shares CLSeligmn Prem Tech Gr Fd STK 22.46 23.16 +3.1 44.9 Calamos Conv Hi Inco Fd CHY 11.78 11.66 -1.0 29.2 Brookfield Real Assets RA 25.28 23.87 -5.6 NS PIMCO Strat Income Fund RCS NA 8.95 NA 9.7 PutnamMuniOpportunities PMO 13.39 12.57 -6.1 5.2
back from investors who wish to cash in their holdings.
Instead, fund shares trade on a stock exchange.
Duff & Phelps DNP 9.98 11.34 +13.6 22.7 Calamos CHI 11.18 11.37 +1.7 33.0 Credit Suisse High Yld DHY 2.79 2.82 +1.1 9.4 Templeton Emerging TEI 12.94 11.48 -11.3 4.5 Wstrn Asset Mngd Muni MMU NA 14.02 NA 5.4
a-The NAV and market price are ex dividend. b-The Duff&PhelpsGblUtilIncFd DPG 17.78 16.05 -9.7 19.1 World Equity Funds DoubleLine Incm Solutions DSL NA 20.58 NA 8.6 Templeton Global GIM 7.42 6.58 -11.3 6.1 WesternAssetMunTrFund MTT NA 21.59 NA 4.9
NAV is fully diluted. c-NAV is as of Thursday’s close. d- Eaton Vance Eqty Inco Fd EOI 14.68 14.23 -3.1 28.6 Alpine Tot Dyn Div AOD 9.90 9.03 -8.8 35.4 Dreyfus Hi Yd Strat Fd DHF 3.52 3.38 -4.0 8.8 Wstrn Asset Emerg Mkts EMD NA 15.36 NA 7.5 Single State Muni Bond
NAV is as of Wednesday’s close. e-NAV assumes rights Eaton Vance Eqty Inco II EOS 15.42 14.90 -3.4 22.3
offering is fully subscribed. f-Rights offering in process.
Cdn Genl Inv CGI 32.29 23.14 -28.3 33.9 Fst Tr Hi Inc Lg/Shrt Fd FSD 17.94 16.45 -8.3 8.3 Wstrn Asset Gl Def Opp Fd GDO NA 18.04 NA 7.5 BlackRock CA Municipal Tr BFZ 15.38 14.40-6.4 5.1
g-Rights offering announced. h-Lipper data has been EtnVncRskMngd ETJ 9.99 9.19 -8.0 15.5 China Fund CHN 23.79 21.55 -9.4 42.4 Guggenheim Strat Opps Fd GOF 19.81 21.50 +8.5 10.2 National Muni Bond Funds BlkRk MuniHldgs CA Qlty MUC 15.61 14.84 -4.9 5.0
adjusted for rights offering. j-Rights offering has Etn Vnc Tax Mgd Buy-Write ETB 16.24 16.59 +2.2 9.97 Clough Global Opp Fd GLO 12.17 11.65 -4.3 46.4 Ivy High Income Opps Fund IVH 15.98 14.94 -6.5 9.4 AllianceBrnstn NtlMun AFB 14.96 13.55 -9.4 4.6 Blkrck MunHl NJ Qlty MUJ 15.78 14.27 -9.6 5.6
expired, but Lipper data not yet adjusted. l-NAV as of Eaton Vance BuyWrite Opp ETV 14.90 15.10 +1.3 12.7 Neuberger Berman HYS NHS 13.23 11.75 -11.2 7.4
previous day. o-Tender offer in process. v-NAV is EtnVncTxAdvGblDiv ETG 18.10 17.26 -4.6 32.7 Blackrock Invest BKN 16.08 14.68 -8.7 5.3 BlRk MuHldg NY Qlty MHN 14.96 13.69 -8.5 5.0
converted at the commercial Rand rate. w-Convertible Eaton Vance Tax-Mng Div ETY 12.08 11.78 -2.5 26.3 EatonVance TxAdv Opport ETO 24.45 24.67 +0.9 32.9 NexPoint Credit Strat Fd NHF 25.20 23.60 -6.3 10.1 BlackRockMun2030Target BTT 24.38 22.49 -7.8 4.1 BlkRk MuniYld CA Fd MYC 15.70 15.21 -3.1 5.1
Note-NAV (not market) conversion value. y-NAV and EatonVanceTax-MngdOpp ETW 11.49 11.82 +2.9 24.3 First Trust Dynamic Eur FDEU 19.27 18.60 -3.5 33.3 Nuveen Credit Opps 2022 JCO 9.93 9.98 +0.6 NS BlackRock Municipal Trust BFK 14.58 14.17 -2.8 5.7 BlkRk MuniYld CA Quality MCA 15.84 14.94 -5.7 5.1
market price are in Canadian dollars. NA signifies that EtnVncTxMngGlDvEqInc EXG 9.35 9.32 -0.3 27.4 Nuveen Gl Hi Incm Fd JGH 18.54 16.68 -10.0 8.2
the information is not available or not applicable. NS Gabelli Glbl Multimedia GGT 9.16 8.77 -4.3 32.4 BlackRockMuni BLE 15.13 14.63 -3.3 6.1 BlkRk MuniYld MI Qlty MIY 15.57 13.98 -10.2 5.5
signifies fund not in existence of entire period. Fiduciary/Clymr Opp Fd FMO 12.23 11.97 -2.1 -12.6 GDL Fund GDL 11.54 9.87 -14.5 10.8 Nuveen High Incm Dec18 JHA 10.08 9.95 -1.3 5.2 BlackRockMuni Tr BYM 15.33 14.31 -6.7 5.3 BlRk Muyld NY Qlty MYN 14.33 12.95 -9.6 5.0
12 month yield is computed by dividing income FT Energy Inc & Growth Fd FEN 22.91 22.62 -1.3 0.3 India Fund IFN 31.25 27.66 -11.5 31.8 Nuveen High Incm Dec19 JHD 10.25 10.08 -1.7 5.8 BlkRk MuniAssets Fd MUA 14.23 15.02 +5.6 4.6 Eaton Vance CA Mun Bd EVM 12.40 11.79 -4.9 4.9
dividends paid (during the previous twelve months for FstTrEnhEqtIncFd FFA 16.38 15.41 -5.9 25.8 Japan Sml Cap JOF 14.74 13.22 -10.3 38.7 Nuveen Hi Incm Nov 2021 JHB 10.11 10.02 -0.9 5.9 BlkRk Munienhanced MEN 12.05 11.95 -0.8 5.7 Invesco CA Value Mun Incm VCV 13.48 12.88-4.5 5.0
periods ending at month-end or during the previous
fifty-two weeks for periods ending at any time other First Tr Engy Infr Fd FIF 18.78 18.08 -3.7 13.0 Korea Fund KF 49.20 43.30 -12.0 35.2 Pioneer High Income Trust PHT 10.79 9.86 -8.6 8.2 BlkRk MuniHldgs Inv MFL 14.84 15.13 +2.0 5.7 Invesco PA Value Mun Incm VPV 14.10 12.05
-14.5 5.1
than month-end) by the latest month-end market price First Tr MLP & Engy Incm FEI 14.25 14.28 +0.2 1.5 Mexico Fund MXF 17.86 15.60 -12.7 11.7 Prud Gl Shrt Dur Hi Yd GHY 16.40 14.59 -11.0 7.8 BlkRk MuniHldgs Qlty II MUE 14.16 13.71 -3.2 5.6 Invesco Inv Grade NY Muni VTN 14.63 13.64-6.8 5.0
adjusted for capital gains distributions. Gabelli Hlthcr & Well GRX 11.01 9.58 -13.0 6.0 Morgan-Stanley Asia-Pac APF 20.61 17.96 -12.9 29.7 Prudentl Sh Dur Hi Yd Fd ISD 16.59 14.96 -9.8 7.7 BlkRk MuniVest MVF 9.72 9.75 +0.3 5.8 Nuveen CA AMT-Free Qual NKX 15.88 15.60 -1.8 5.0
Source: Lipper
Gabelli Utility Tr GUT 5.49 7.05 +28.4 21.5 MS China a Shr Fd CAF 28.60 24.26 -15.2 34.9 Wells Fargo Incm Opps Fd EAD NA 8.50 NA 8.7 BlkRk MuniVest II MVT 15.37 15.60 +1.5 5.9 Nuveen CA Muni Value NCA 10.50 10.53 +0.3 3.9
Friday, November 10, 2017 GAMCOGlblGoldNatRscs&Inc GGN 5.41 5.45 +0.7 13.9 Wstrn Asset Glbl Hi Inco EHI NA 9.99 NA 8.7 Nuveen CA Quality Muni NAC 15.76 14.63 -7.2 5.5
MS Emerging Fund MSF 19.85 17.45 -12.1 30.4 BlkRk MuniYield MYD 14.99 14.32 -4.5 6.0
52 wk GoldmanSachsMLPIncOpp GMZ 8.60 NA 2.9 Wstrn Asset High Inco II HIX NA 6.97 NA 8.7 Nuveen MD Qual Muni NMY 14.62 12.70 -13.1 5.0
Prem Ttl MS India Invest IIF 39.94 35.43 -11.3 39.6 BlkRk MuniYld Quality MQY 15.98 15.51 -2.9 5.6
Goldman Sachs MLPEnergy GER 6.10 NA -3.6 New Germany Fund GF 20.89 18.70 -10.5 49.4 Wstrn Asset Opp Fd HIO NA 4.98 NA 7.2 BlkRk MuniYld Qlty II MQT 14.03 13.02 -7.2 5.6 Nuveen MI Qual Muni NUM 15.46 13.41 -13.3 4.8
Fund (SYM) NAV Close /Disc Ret West Asst HY Def Opp Fd HYI NA 15.17 NA 7.8 Nuveen NJ Qual Muni NXJ 15.92 13.71 -13.9 5.2
John Hancock Finl Opps Fd BTO 34.95 34.70 -0.7 15.1 Swiss Helvetia Fund SWZ 13.62 12.45 -8.6 20.9 BlRkMunyldQltyIII MYI 14.60 14.13 -3.2 5.8
General Equity Funds Macquarie Glbl Infrstrctr MGU 28.29 24.85 -12.2 40.1 Templeton Dragon TDF 24.82 21.91 -11.7 42.9 Other Domestic Taxable Bond Funds Deutsche Mun Income Tr KTF 12.68 11.87 -6.4 6.6 Nuveen NY AMT-Free NRK 14.51 12.96 -10.7 4.9
Adams Divers Equity Fd ADX 18.20 15.73 -13.6 30.3 NeubergerBermanMLPIncm NML 9.59 8.70 -9.3 5.5 Apollo Tactical Incm Fd AIF 17.51 15.86 -9.4 8.8 Nuveen NY Qual Muni NAN 15.14 13.94 -7.9 5.1
Templeton Emerging EMF 19.31 17.09 -11.5 48.3 Dreyfus Mun Bd Infr Fd DMB 14.28 12.98 -9.1 4.9
Boulder Growth & Income BIF 12.30 10.52 -14.5 29.2 Neubrgr Brm Rl Est Sec Fd NRO 5.87 5.54 -5.6 18.8 Ares Dynamic Credit Alloc ARDC NA 16.29 NA 6.9 Nuveen OH Qual Muni NUO 16.74 14.95 -10.7 4.7
Virtus Total Return Fund ZF 13.38 12.56 -6.1 28.1 Dreyfus Strat Muni Bond DSM 8.40 8.43 +0.4 5.9
Central Securities CET 32.07 26.59 -17.1 31.8 Nuveen Dow 30 Dynamic DIAX 18.46 17.59 -4.7 30.9 Barings Corp Investors MCI NA 15.65 NA 3.7 Nuveen PA Qual Muni NQP 15.30 13.56 -11.4 5.2
Voya Infr Indls & Matls IDE 16.58 16.07 -3.1 29.2 Dreyfus Strategic Munis LEO 8.62 8.78 +1.9 5.9
CohSteer Opprtnty Fd FOF 13.72 13.13 -4.3 24.3 Nuveen Core Eq Alpha JCE 16.15 15.57 -3.6 27.9 BlackRock Multi-Sector IT BIT 19.97 18.36 -8.1 9.5 Nuveen VA Qual Muni NPV 14.50 13.09 -9.7 4.3
Wells Fargo Gl Div Opp EOD 6.15 NA 30.5 Eaton Vance Mun Bd Fd EIM 13.74 12.55 -8.7 5.0
Cornerstone Strategic CLM 13.54 15.11 +11.6 21.5 Nuveen Diversified Div JDD 13.02 12.53 -3.8 24.5 BlackRock Taxable Mun Bd BBN 23.89 23.07 -3.4 6.8 PIMCO California Muni PCQ NA 17.22 NA 5.3
Prem12 Mo Eaton Vance Mun Income EVN 13.40 12.39 -7.5 5.4 PIMCO California Mun II PCK NA 10.04
EtnVnc TaxAdvDiv EVT 23.03 22.52 -2.2 23.6 Nuveen Engy MLP Fd JMF 11.05 10.73 -2.9 -8.1 Doubleline Oppor Credit DBL NA 22.56 NA 8.7 NA 5.6
Fund (SYM) NAV Close /Disc Yld EV National Municipal Opp EOT 22.01 22.01 0.0 4.7
Gabelli Dividend & Incm GDV 23.87 22.32 -6.5 23.7 NuvNASDAQ100DynOver QQQX 22.96 23.88 +4.0 39.4 Duff & Phelps Utl & Cp Bd DUC 9.72 9.06 -6.8 6.5 52 wk
Invesco Adv Mun Incm II VKI 12.21 11.37 -6.9 5.8
Gabelli Equity Trust GAB 6.38 6.01 -5.8 24.8 Nuveen Real Est Incm Fd JRS 11.57 11.16 -3.5 21.9 U.S. Mortgage Bond Funds EtnVncLtdFd EVV 15.01 13.74 -8.5 7.1 Prem Ttl
BlackRock Income Trust BKT 6.66 6.22 -6.6 5.1 Franklin Ltd Duration IT FTF NA 11.86 NA 11.4 Invesco Mun Incm Opps Tr OIA 7.62 7.82 +2.6 5.2 Fund (SYM) NAV Close /Disc Ret
Genl American Investors GAM 39.30 NA NA NA NuvS&P500DynOverwrite SPXX 15.93 NA 25.2
Nuveen Mtg Opp Term Fd JLS 26.64 25.72 -3.5 5.2 GuggenheimTaxableMuni GBAB 23.34 22.51 -3.6 6.8 Invesco Mun Opportunity VMO 13.58 12.41 -8.6 6.1
Guggenheim Enh Fd GPM 8.84 8.46 -4.3 25.9 NuveenS&P500Buy-Write BXMX 14.33 14.06 -1.9 18.6 General Equity Funds
Investment Grade Bond Funds Invesco High Incm 2023 IHIT 10.09 10.10 0.0 NS Invesco Municipal Trust VKQ 13.57 12.34 -9.1 5.9
HnckJohn TxAdv HTD 25.93 25.53 -1.5 27.9 Reaves Utility Fund UTG 33.30 31.10 -6.6 17.4 Specialized Equity Funds
Blackrock Core Bond Tr BHK 14.89 14.15 -5.0 5.5 John Hancock Investors JHI 18.58 17.69 -4.8 7.2 Invesco Qlty Mun Inco IQI 13.70 12.41 -9.4 5.5
Liberty All-Star Equity USA 6.78 6.15 -9.3 33.1 Tekla Hlthcr Investors HQH 24.04 23.08 -4.0 4.1 Griffin Inst Access RE:A 26.96 NA NA 7.5
BlkRk Credit Alloc Incm BTZ 14.85 13.28 -10.6 6.3 KKR Income Opps Fund KIO NA 16.19 NA 9.4 Invesco Inv Grade Muni VGM 14.07 13.02 -7.5 5.8
Royce Micro-Cap RMT 10.27 9.09 -11.5 26.3 Tekla Healthcare Opps Fd THQ 18.94 17.41 -8.1 13.8 Invesco Value Mun Incm Tr IIM 16.35 14.73 -9.9 5.0 Griffin Inst Access RE:C 26.53 NA NA 6.7
Royce Value Trust RVT 17.41 15.79 -9.3 34.6 John Hancock Income Secs JHS 15.49 14.73 -4.9 5.4 MFS Charter MCR 9.28 8.53 -8.1 8.7 Griffin Inst Access RE:I 27.12 NA NA 7.7
Tekla Life Sciences HQL 19.96 19.74 -1.1 14.9 MainStay DefinedTerm MMD 20.17 19.21 -4.8 5.6
Source Capital SOR 44.94 40.26 -10.4 16.1 MFS Inc Tr MIN 4.45 4.17 -6.3 9.2 MFS Multimkt MMT 6.63 6.11 -7.8 8.7 Griffin Inst Access RE:L 26.95 NA NA NS
Tekla World Hlthcr Fd THW 14.41 13.64 -5.3 6.0 MFS Munl Inco MFM 7.40 6.87 -7.2 5.5
Tri-Continental TY 29.16 26.06 -10.6 28.4 WstAstClymr InfLnkd Fd WIW NA 11.23 NA 3.6 Nuveen Build Am Bd Fd NBB 22.21 21.56 -2.9 5.7 Griffin Inst Access RE:M 26.83 NA NA NS
Tortoise Energy TYG 26.62 NA -3.9 Nuveen AMT-Free Quality NEA 15.25 13.80 -9.5 5.4
Specialized Equity Funds WstAssetClymr InflLnk Sec WIA NA 11.51 NA 3.3 PIMCO Corporate & Incm PTY NA 16.81 NA 10.3 NexPointRlEstStrat;A 20.46 NA NA 8.3
Tortoise MLP Fund NTG 16.92 NA -3.8 Nuveen AMT-Free Mun NVG 16.62 15.36 -7.6 5.7
Adams Natural Rscs Fd PEO 23.23 19.92 -14.3 9.3 Loan Participation Funds PIMCO Corporate & Incm PCN NA 16.96 NA 10.4 NexPointRlEstStrat;C 20.41 NA NA 7.5
Voya Gl Equity Div IGD 8.14 7.87 -3.3 26.6 Apollo Sr Fltg Rate Fd AFT 18.07 16.27 -10.0 7.4 Nuveen Mun Credit Incm Fd NZF 16.23 15.14 -6.7 5.9
AllnzGI NFJ Div Interest NFJ 14.60 13.19 -9.7 15.9 PIMCO HiInco PHK NA 7.66 NA 13.1 NexPointRlEstStrat;Z 20.41 NA NA 8.7
Income Preferred Stock Funds BlkRk Debt Strat Fd DSU 12.73 11.69 -8.2 6.9 Nuveen Enhncd Mun Val Fd NEV 15.16 14.38 -5.1 5.7
AlpnGlblPrProp AWP 7.23 6.29 -13.0 37.1 PIMCO Inco Str Fd PFL NA 11.87 NA 8.9 Resource RE Div Inc:A 10.05 NA NA 6.7
Calamos Strat Fd CSQ 12.63 12.14 -3.9 33.4 BlackRock FR Incm Strat FRA 14.98 13.99 -6.6 5.6 Nuveen Intermed Dur Mun NID 13.85 12.99 -6.2 4.9
ASA Gold & Prec Metals ASA 12.74 11.20 -12.1 -3.2 PIMCO Incm Strategy Fd II PFN NA 10.56 NA 8.9 Resource RE Div Inc:C 10.03 NA NA 5.8
Cohen & Steers Dur Pfd LDP 27.43 26.47 -3.5 22.3 Blkrk FltRt InTr BGT 14.46 14.07 -2.7 5.3 NuveenMuniIncoOpp Fd NMZ 13.66 13.64 -0.1 6.0
BlkRk Enh Cap Inco CII 16.69 15.71 -5.9 28.8 Putnam Mas Inco PIM 5.02 4.69 -6.6 6.5 Resource RE Div Inc:D 10.20 NA NA 6.1
Cohen & Strs Sel Prf Inco PSF 27.99 28.26 +1.0 22.3 BlackstoneGSO Strat Cred BGB NA 15.79 NA 8.4 Nuveen Muni Value Fund NUV 10.39 10.18 -2.0 3.8
BlkRk Engy Res Tr BGR 15.50 14.08 -9.2 10.3 Putnam Premier Income Tr PPT 5.57 5.24 -5.9 5.8 Resource RE Div Inc:I 10.47 NA NA 6.6
FT Interm Duration Pfd FPF 24.99 24.59 -1.6 25.3 Blackstone GSO Sr Float BSL NA 17.35 NA 6.7 Wells Fargo Multi-Sector ERC NA 13.05 NA 9.4 Nuveen Qual Mun Incm Fd NAD 15.60 14.02 -10.1 5.6
BlackRock Enh Eq Div Tr BDJ 9.75 9.05 -7.2 23.9 Resource RE Div Inc:L 10.04 NA NA NS
Flaherty & Crumrine Dyn DFP 26.33 26.14 -0.7 24.4 Eagle Point Credit ECC NA 19.21 NA 8.3 Nuveen Sel Tax Free NXP 15.55 14.75 -5.1 3.7
BlackRock Enh Gl Div Tr BOE 14.30 13.39 -6.4 24.7
World Income Funds Resource RE Div Inc:T 10.02 NA NA 5.9
Flaherty & Crumrine Pfd FFC 20.35 20.81 +2.3 16.2 Eaton Vance FR Incm Tr EFT 15.54 14.27 -8.2 5.7 Abeerden Asia-Pacific FAX 5.43 4.98 -8.3 8.3 Nuveen Sel TF NXQ 14.94 14.06 -5.9 3.6
BlkRk Intl Grwth&Inco BGY 6.99 6.57 -6.0 29.1 Resource RE Div Inc:U 10.05 NA NA 6.6
John Hancock Pfd Income HPI 21.13 21.53 +1.9 19.2 EatonVnc SrFltRate EFR 15.20 14.20 -6.6 6.0 Etn Vnc Short Dur Fd EVG NA 14.02 NA 6.9 PIMCO MuniFd PMF NA 13.11 NA 5.9 Resource RE Div Inc:W 10.20 NA NA 6.5
BlkRk Health Sci BME 35.44 35.83 +1.1 9.1 John Hancock Pfd II HPF 20.88 21.36 +2.3 18.3 Eaton Vance Sr Incm Tr EVF 7.14 6.41 -10.2 5.6 Pimco Muni Inc II PML NA 13.22 NA 5.9
Legg Mason BW Glbl Incm BWG NA 13.00 NA 8.3 SharesPost 100 26.32 NA NA -2.5
BlackRck Rscs Comm Str Tr BCX 10.28 8.95 -12.9 21.2 John Hancock Pfd Inc III HPS 18.64 18.25 -2.1 18.3 First Trust Sr FR Fd II FCT 14.05 12.86 -8.5 6.1 PIMCO Muni Inc III PMX NA 11.76 NA 5.9
MS EmMktDomDebt EDD 8.70 7.66 -12.0 8.4 Tot Inc+ RE:A 29.49 NA NA 6.9
BlackRock Science & Tech BST 28.11 26.26 -6.6 52.9 JHancock Pr Div PDT 15.72 16.86 +7.3 37.4 FT Sr Floating Rate 2022 FIV 9.71 9.28 -4.4 NS PIMCO Dynamic Credit PCI NA 22.35 NA 11.4 Pioneer Mun Hi Inc Adv Tr MAV 11.94 11.40 -4.5 5.3 Tot Inc+ RE:C 28.72 NA NA 6.1
BlackRock Utility & Infr BUI 21.44 21.03 -1.9 25.6 LMP Cap & Inco Fd SCD 13.91 NA 20.9 Invesco Credit Opps Fund VTA 13.04 11.45 -12.2 7.1 PIMCODynamicIncomeFund PDI NA 30.27 NA 13.5 Pioneer Mun Hi Incm Tr MHI 12.82 11.71 -8.7 5.1 Tot Inc+ RE:I 29.82 NA NA 7.2
CBREClarionGlblRlEstIncm IGR 8.94 7.91 -11.5 18.4 Nuveen Pfd & Incm Opps Fd JPC 10.77 10.48 -2.7 24.4 Invesco Senior Income Tr VVR 4.87 4.36 -10.5 6.0 Tot Inc+ RE:L 29.45 NA NA NS
Central Fund of Canada CEF 13.59 13.24 -2.6 4.9 Nuveen Pfd & Incm Secs Fd JPS 10.40 10.33 -0.7 27.1 Nuveen Credit Strt Inc Fd JQC 9.12 8.20 -10.1 7.4 USQ Core Real Estate:I USQIX 25.21 NA NA NS
ClearBridge Amer Engy CBA 7.85 NA -0.5 Nuveen Preferred & Incm JPI 25.97 25.25 -2.8 19.1 NuvFloatRteInco Fd JFR 11.59 11.18 -3.5 6.9 USQ Core Real Estate:IS USQSX 25.21 NA NA NS
ClearBridge Engy MLP Fd CEM 13.26 NA -3.7 TCW Strategic Income Fund TSI 5.56 NA 12.3 Nuv Float Rte Opp Fd JRO 11.50 11.00 -4.3 7.3 A Week in the Life of the DJIA Versus Cap MMgr RE Inc:F 27.56 NA NA 6.5
Clearbridge Engy MLP Opp EMO 10.93 NA -8.3 Virtus Global Dividend ZTR 12.83 13.38 +4.3 38.6 Nuveen Senior Income Fund NSL 6.87 6.56 -4.5 6.9 Versus Cap MMgr RE Inc:I 27.63 NA NA 6.8
Clearbridge Engy MLP TR CTR 11.71 NA 2.5 Convertible Sec's. Funds Pioneer Floating Rate Tr PHD 12.47 11.61 -6.9 6.0 A look at how the Dow Jones Industrial Average component stocks Versus Capital Real Asst VCRRX 25.07 NA NA NS
Cohen & Steers Infr Fd UTF 25.81 23.40 -9.3 30.8 AdvntClymrFd AVK 17.50 15.83 -9.5 26.0 Voya Prime Rate Trust PPR 5.65 5.01 -11.3 6.0 did in the past week and how much each moved the index. The DJIA Wildermuth Endwmnt Str 12.78 NA NA 13.3
C&S MLP Incm & Engy Opp MIE 10.49 9.70 -7.5 5.7 AllianzGI Conv & Incm NCV 6.56 6.97 +6.3 30.8 High Yield Bond Funds Wildermuth Endwmnt S:C 12.61 NA NA 12.4
Cohen & Steers Qual Inc RQI 13.87 12.78 -7.9 18.5 AllianzGI Conv & Incm II NCZ 5.89 6.17 +4.8 30.2 AllianceBernstein Glbl AWF 13.84 12.51 -9.6 6.7
lost 116.98 points, or 0.50%, on the week. A $1 change in the price of Wildermuth Endwmnt S:I 12.84 NA NA NS
CohnStrsPfdInco RNP 23.14 21.18 -8.5 24.9 AllianzGI Div Incm ACV 22.47 21.97 -2.2 37.8 Barings Glbl Short Dur HY BGH 21.08 20.07 -4.8 8.9 any DJIA stock = 6.89-point change in the average. To date, a $1,000 Income Preferred Stock Funds
Cohen & Steers TR RFI 13.64 12.63 -7.4 15.5 AllianzGI Equity & Conv NIE 22.95 20.67 -9.9 23.4 BlackRock Corp Hi Yd Fd HYT 12.21 11.01 -9.8 7.9 investment on Dec. 31 in each current DJIA stock component would MultiStrat Gro & Inc:A 15.30 NA NA 5.3
MultiStrat Gro & Inc:C 14.98 NA NA 4.6
have returned $35,716, or a gain of 19.05%, on the $30,000 MultiStrat Gro & Inc:I 15.50 NA NA 5.6
Borrowing Benchmarks | WSJ.com/bonds investment, including reinvested dividends. MultiStrat Gro & Inc:L 15.09 NA NA 4.9
The Relative Value:CIA VFLEX 25.38 NA NA NS
The Week’s Action Convertible Sec's. Funds
Money Rates November 10, 2017 Pct Stock price Point chg
chg (%) change in average* Company Symbol Close
$1,000 Invested(year-end '16)
$1,000
Calmos Dyn Conv and Inc CCD 20.75 20.27 -2.3 18.6
World Equity Funds
Key annual interest rates paid to borrow or lend money in U.S. and international markets. Rates below are a 6.22 6.14 42.28 Walt Disney DIS $104.78 $1,013 BMO LGM Front ME 10.26 NA NA 14.2
1.90 2.19 15.08 Chevron CVX 117.18 1,026 CalamosGlbTotRet CGO 13.31 14.06 +5.6 24.9
guide to general levels but don’t always represent actual transactions.
1.82 1.58 10.88 Procter & Gamble PG 88.16 1,081 Prem12 Mo
Week —52-WEEK— Week —52-WEEK— Fund (SYM) NAV Close /Disc Yld
Inflation Latest ago High Low Latest ago High Low 1.74 0.35 2.41 General Electric GE 20.49 666 U.S. Mortgage Bond Funds
Sept. index Chg From (%) 1.67 2.22 15.29 Travelers TRV 135.54 1,127 Vertical Capital Income 12.61 NA NA 3.2
level Aug. '17 Sept. '16 Treasury bill auction Six month 1.61461 1.59017 1.61461 1.26211
One year 1.88150 1.86289 1.88178 1.58789 Loan Participation Funds
1.38 1.24 8.54 Wal-Mart Stores WMT 90.92 1,342 9.78 NA NA 3.7
4 weeks 1.035 1.020 1.300 0.270 504 Fund
U.S. consumer price index 13 weeks 1.185 1.130 1.185 0.420 Euro Libor 1.26 2.17 14.94 Apple AAPL 174.67 1,532 FedProj&TrFinanceTender 10.06 NA NA NS
All items 246.819 0.53 2.2 26 weeks 1.300 1.260 1.300 0.535 1.24 0.57 3.92 Coca-Cola KO 46.54 1,151 Highland Flt Rt Opp 14.96 NA NA 4.3
One month -0.399 -0.400 -0.376 -0.405
Core 252.941 0.19 1.7 Invesco Sr Loan A 6.65 NA NA 4.2
Three month -0.378 -0.378 -0.325 -0.381 0.68 0.38 2.62 Nike NKE 56.09 1,115
Secondary market Invesco Sr Loan B 6.65 NA NA 4.2
Six month -0.314 -0.316 -0.214 -0.322
International rates 0.47 0.52 3.58 Visa V 111.88 1,442 Invesco Sr Loan C 6.66 NA NA 3.5
One year -0.247 -0.234 -0.075 -0.247 Invesco Sr Loan IB 6.65 NA NA 4.4
Fannie Mae
Week 52-Week –0.11 –0.15 –1.03 Caterpillar CAT 136.48 1,516 Invesco Sr Loan IC 6.65 NA NA 4.3
30-year mortgage yields Euro interbank offered rate (Euribor) 6.65 NA NA 4.4
Latest ago High Low –0.17 –0.28 –1.93 Home Depot HD 164.11 1,246 Invesco Sr Loan Y
30 days 3.481 3.462 3.865 3.253 One month -0.371 -0.372 -0.366 -0.375 RiverNorth MP Lending RMPLX NA NA NA 6.6
60 days 3.500 3.483 3.899 3.281 Three month -0.329 -0.329 -0.311 -0.332 –0.29 –0.24 –1.65 Exxon Mobil XOM 82.94 954 Sierra Total Return:T SRNTX 25.14 NA NA NS
Prime rates
Six month -0.275 -0.276 -0.210 -0.276 –0.32 –0.27 –1.86 Microsoft MSFT 83.87 1,373 Voya Senior Income:A 12.54 NA NA 5.3
U.S. 4.25 4.25 4.25 3.50
Other short-term rates One year -0.191 -0.191 -0.069 -0.191 –0.34 –0.90 –6.20 Boeing BA 260.85 1,723 Voya Senior Income:C 12.51 NA NA 4.8
Canada 3.20 3.20 3.20 2.70 Voya Senior Income:I 12.50 NA NA 5.6
Japan 1.475 1.475 1.475 1.475 Week 52-Week
Value 52-Week
–0.37 –0.52 –3.58 Johnson & Johnson JNJ 139.56 1,235 Voya Senior Income:W 12.54 NA NA 5.6
Latest Traded High Low
Latest ago high low High Yield Bond Funds
Policy Rates –0.85 –1.80 –12.39 UnitedHealth Group UNH 211.07 1,334
DTCC GCF Repo Index Griffin Inst Access Cd:A NA NA NA NS
Euro zone 0.00 0.00 0.00 0.00 Call money –1.03 –0.58 –3.99 Merck MRK 55.48 963 Griffin Inst Access Cd:C NA NA NA NS
Treasury 1.200 38.700 1.366 0.244
Switzerland 0.50 0.50 0.50 0.50 –1.04 –0.37 –2.55 Pfizer PFE 35.18 1,126 Griffin Inst Access Cd:F NA NA NA NS
3.00 3.00 3.00 2.25 MBS 1.213 103.502 1.506 0.257
Britain 0.50 0.50 0.50 0.25 Griffin Inst Access Cd:I NA NA NA NS
–1.39 –0.48 –3.31 Cisco Systems CSCO 33.99 1,165 Griffin Inst Access Cd:L NA NA NA NS
Australia 1.50 1.50 1.50 1.50 Commercial paper (AA financial) Open Implied
Settle Change Interest Rate PIMCO Flexible Cr I;Inst NA NA NA NS
90 days 1.32 1.31 1.32 0.62 –1.60 –2.42 –16.66 IBM IBM 149.16 934
Overnight repurchase PionrILSInterval 9.65 NA NA 10.5
DTCC GCF Repo Index Futures –1.64 –0.76 –5.23 Intel INTC 45.58 1,292 WA Middle Mkt Dbt NA NA NA 11.2
U.S. 1.15 1.21 1.38 0.15 Libor Treasury Nov 98.830 unch. 8834 1.170 –1.67 –1.19 –8.19 DowDuPont DWDP 69.97 1,249 WA Middle Mkt Inc WMF NA NA NA 11.2
U.S. government rates One month 1.24606 1.24322 1.24606 0.53817 Treasury Dec 98.690 0.005 2043 1.310 Other Domestic Taxable Bond Funds
–1.74 –4.25 –29.26 Goldman Sachs GS 240.15 1,012
Three month 1.41289 1.39194 1.41289 0.90567 Treasury Jan 98.585 -0.010 450 1.415 Capstone Church Capital 11.43 NA NA 1.5
Discount –1.81 –3.06 –21.07 McDonald’s MCD 165.59 1,387 CION Ares Dvsfd Crdt;A NA NA NA NS
CION Ares Dvsfd Crdt;C NA NA NA NS
1.75 1.75 1.75 1.00 Notes on data:
–2.05 –4.77 –32.84 3M MMM 227.45 1,297 CION Ares Dvsfd Crdt;I NA NA NA NS
U.S. prime rate is the base rate on corporate loans posted by at least 70% of the 10 largest U.S. banks, –2.44 –2.96 –20.38 United Technologies UTX 118.11 1,096 CNR Select Strategies 7.87 NA NA NS
Federal funds GL Beyond Income 3.68 NA NA NE
and is effective June 15, 2017. Other prime rates aren’t directly comparable; lending practices vary –3.02 –2.91 –20.04 American Express AXP 93.52 1,283
Effective rate 1.1800 1.1800 1.2000 0.3500 widely by location; Discount rate is effective June 15, 2017. DTCC GCF Repo Index is Depository Palmer Square Opp Income NA NA NA 5.0
Trust & Clearing Corp.'s weighted average for overnight trades in applicable CUSIPs. Value traded is in –3.85 –3.90 –26.85 J.P. Morgan Chase JPM 97.51 1,156 Resource Credit Inc:A NA NA NA 6.4
High 1.3125 1.3125 1.3125 0.5625
1.0500 1.1600 0.2500
billions of U.S. dollars. Federal-funds rates are Tullett Prebon rates as of 5:30 p.m. ET. Futures on the –5.36 –2.54 –17.49 Verizon VZ 44.88 882 Resource Credit Inc:C NA NA NA 5.7
Low 1.0000 DTCC GCF Repo Index are traded on NYSE Liffe US. Resource Credit Inc:I NA NA NA 6.7
Bid 1.1600 1.1600 1.1700 0.3000 Sources: Federal Reserve; Bureau of Labor Statistics; DTCC; SIX Financial Information; *Based on Composite price. DJIA is calculated on primary-market price. Resource Credit Inc:L NA NA NA NS
Offer 1.1800 1.1800 1.1900 0.3200 General Electric Capital Corp.; Tullett Prebon Information, Ltd. Source: WSJ Market Data Group; FactSet. Resource Credit Inc:W NA NA NA 6.3
B10 | Monday, November 13, 2017 * * THE WALL STREET JOURNAL.

MARKETS

3.2%
The gain for real-estate stocks in the S&P
500 last week, the biggest advance for the
sector since September.

Sector Makes It for Real

Real-state stocks had
themselves quite a week.
With a 3.2% gain, they were
the best performers among the
11 sectors in the S&P 500 last
week. It was the biggest weekly
gain for real-estate stocks since
dividends, well behind the 15%
advance for the broader S&P 500.
Last week showed that
fundamental factors are critical,
too. Mall REIT Macerich Co. shot
up 18% on expectations of
activism or a potential deal.

September.
The sector’s recent run is
MONEYBEAT
more impressive considering that
all the gains accrued in the first
three sessions of last week, its
best three-day stretch in nearly
ILYA NAYMUSHIN/REUTERS
Three cell-tower operators were
winners after Sprint Corp. called
off its pursuit of T-Mobile US
Inc. SBA Communications Corp.,
American Tower Corp. and
Crown Castle International
Corp. jumped between 6% and
9% last week since the deal’s U.S. dominance in wheat is being eroded by farmers in Russia, Europe and India. A tractor piles wheat grain in a village near Siberia.
breakup means greater

In Russia, Wheat Abounds

a year. competition among wireless
Of particular note to carriers and will likely boost
investors: Real estate logged demand for wireless
those big gains despite a rise in infrastructure.
Treasury yields. Dividend-paying Frank Cappelleri, a technical
real estate investment trusts, analyst at Nomura Instinet, said BY JESSE NEWMAN season snowstorm. U.S. wheat
the bulk of the group, tend to be higher interest rates are still a AND BENJAMIN PARKIN output is expected to fall by a Grain Drain
at odds with interest rates, since threat to real estate. But after quarter from the previous sea- A surge in Russian wheat production is hitting
owning them becomes less last week, “the breakout is clear,“ U.S. wheat farmers are los- son. the market share of U.S. farmers.
attractive when the return on he wrote, ”and we shouldn’t ing out to an old rival: Russia. Other countries are also
Wheat production Share of global wheat exports
safer assets increases. shrug it off.” —Chris Dieterich The 83 million tons of chipping away at U.S. domi-
The threat of rising rates has wheat Russian farmers are nance in wheat. Farmers are Russia U.S. Russia U.S.
hindered REITs all year, since ONLINE forecast to have reaped this growing more grain in Europe 80 million metric tons 20%
investors expect the Federal season has cemented the coun- and India. The U.S. Depart-
Reserve to boost its key For more try’s resur- ment of Agriculture expects
borrowing rate in December and
at least twice more in 2018. The
S&P 500’s real-estate sector is up
WSJ
.COM
MoneyBeat blog
posts, go to
blogs.wsj.com/
gence as an
agricul-
tural super-
American wheat to make up
15% of global exports this year,
down from half in the
60 15

9.6% so far in 2017, excluding MoneyBeat power and ratcheted up the mid-1970s. 40 10
pressure on U.S. farmers, who A main reason has been
sowed fewer acres of wheat in Russia’s resurgence. Russia
2017 than ever before. Wheat was a giant of world grain 20 5
Currencies prices at the Chicago Board of markets in the early 19th cen-
Trade hit $4.19 a bushel this tury, shipping wheat from
U.S.-dollar foreign-exchange rates in late New York trading week, down almost 25% since vast, fertile fields to mills 0 0
US$vs, US$vs,
Fri YTDchg Fri YTDchg Russia began a record wheat across Europe. That domi- 2012 ’13- ’14- ’15- ’16- ’17- 2012 ’13- ’14- ’15- ’16- ’17-
Country/currency in US$ per US$ (%) Country/currency in US$ per US$ (%) harvest in July. nance slipped as industrial ag- -’13 ’14 ’15 ’16 ’17 ’18* -’13 ’14 ’15 ’16 ’17 ’18*
Americas Vietnam dong .00004403 22713 –0.3 Large investments and a riculture spread across the *Data for 2017-18 are projections.
Argentina peso .0571 17.4900 10.2 Europe weaker ruble have helped Rus- U.S. in the early 20th century. Source: U.S. Department of Agriculture THE WALL STREET JOURNAL.
Brazil real .3075 3.2779 0.7 Czech Rep. koruna .04565 21.907 –14.7 sia surpass the U.S. as the The Soviet Union’s collectiv-
Canada dollar .7885 1.2682 –5.7 Denmark krone .1568 6.3795 –9.8 world’s top wheat exporter. A ized farming system broke Russian wheat yields have tion bottlenecks depress prices
Chile peso .001586 631.70 –5.7 Euro area euro 1.1665 .8573 –9.8 decade ago, for instance, U.S. down, and Russia in the 1970s increased 70% in the past five domestically. This season has
Colombia peso .0003322 3008.00 0.2 Hungary forint .003740 267.40 –9.1
1 1 .009657 103.55 –8.3
farmers supplied a large por- began importing huge quanti- years. The USDA expects out- been less profitable for many
Ecuador US dollar unch Iceland krona
Mexico peso .0525 19.1125 –7.8 Norway krone .1229 8.1345 –5.9 tion of North Africa’s grain. ties of wheat and other foods. put from Russian farms Russian farmers than 2016,
Peru new sol .3086 3.243 –3.3 Poland zloty .2759 3.6239 –13.4 The U.S. Wheat Associates But since the late 1990s, stretching outward from the they say.
Uruguay peso .03426 29.2150 –0.5 Russia ruble .01690 59.187 –3.4 trade group said it would close Russian agriculture has re- Black Sea to nearly double that But for now, many farmers
Venezuela b. fuerte .100125 9.9875 –0.1 Sweden krona .1197 8.3564 –8.2 its office in Egypt, the world’s bounded. Backed by govern- of American farms this season. are reaping the rewards of
Asia-Pacific Switzerland franc 1.0042 .9958 –2.3 largest wheat importer, in De- ment support and private in- “Yields are growing every their record haul. Analysts re-
Turkey lira .2588 3.8636 9.7
Australian dollar .7662 1.3051 –6.0
Ukraine hryvnia .0377 26.5100 –2.1
cember. vestors, Russian farmers year and Russia still has a lot port seeing newly purchased
China yuan .1506 6.6415 –4.4 “We literally can’t compete bought machinery and in- to do,” said Maxim Basov, luxury vehicles on the road in
UK pound 1.3191 .7581 –6.4
Hong Kong dollar .1282 7.8011 0.6
Middle East/Africa on the price of wheat in those vested in supplies and land. A chief executive of Rusagro many Russian farming commu-
India rupee .01539 65.190 –4.1
Indonesia rupiah .0000740 13533 0.06 Bahrain dinar 2.6522 .3771 –0.03 markets compared to Russia,” weaker ruble and bans on im- Group LLC. The agricultural nities.
Japan yen .008813 113.54 –3.0 Egypt pound .0567 17.6500 –2.7 said Steve Mercer, the trade ported food have given farm- conglomerate, one of the coun- “Everyone is making
Kazakhstan tenge .003002 332.80 –0.3 Israel shekel .2818 3.5485 –7.8 group’s spokesman. ers an added boost. try’s largest, harvested 40% money,” said Swithun Still, di-
Macau pataca .1242 8.0465 1.6 Kuwait dinar 3.3055 .3025 –1.0 Poor weather this year “The highly inefficient So- more winter wheat this season rector at Switzerland-based
Malaysia ringgit .2377 4.1915 –6.6 Oman sul rial 2.5967 .3851 0.04 added to the trouble facing viet crop-growing industry has than a year earlier. Solaris Commodities SA
New Zealand dollar .6930 1.4431 –0.1 Qatar rial .2596 3.853 5.8
Pakistan rupee .00952 104.950 0.6 Saudi Arabia riyal .2667 3.7502 –0.01
American farmers. Russia en- transformed into a market- Some analysts warn that which trades Russian grain.
Philippines peso .0195 51.238 3.3 South Africa rand .0696 14.3704 4.9 joyed a cool, wet growing sea- driven one,” said Andrey Sizov Russia’s bounty could also “Producers are making money,
Singapore dollar .7358 1.3604 –6.0 son, while the U.S. Great Plains Jr., managing director of agri- backfire for some farmers if a traders are making money. It’s
South Korea won .0008942 1120.97 –7.2 Close Net Chg % Chg YTD%Chg were hit by drought and a late- cultural consultancy SovEcon. glut in storage and transporta- happy days.”
Sri Lanka rupee .0065104 153.60 3.5 WSJ Dollar Index 87.58 –0.03–0.04 –5.77
Taiwan dollar .03311 30.170 –7.0 Sources: Tullett Prebon, WSJ Market Data
Thailand baht .03020 33.125 –7.5 Group, Thomson Reuters
| Market events coming this week
Gold Drops
Monday
Treasury budget
On Large
Oct. 2016, $44.2 bil.
deficit
Sell Order
Oct. 2017, exp. $60 .0 bil.
BY STEPHANIE YANG
deficit
      AND IRA IOSEBASHVILI
Earnings expected*
Estimate/Year Ago($)
Gold prices tumbled to a
% 

&! '
&  4 .!

NYSE Symbol “” AECOM 0.73/0.65 one-week low on Friday, after
NYSE Rights Symbol “ RT” Tyson Foods 1.35/0.96 a large seller shook up quiet
Record date " 
, 2017
trading ahead of the weekend.
Last trading day for rights is 

1, 2017* Gold for December delivery
     !
Tuesday settled down 1% at $1,274.20 a
=1

,

 Producer price index troy ounce on the Comex divi-
All items, Sept. up 0.4% sion of the New York Mercan-

  
 
   


Oct., expected up 0.2% tile Exchange, the lowest set-


  
  

 Core, Sept. up 0.4% tle value since Nov. 3.
Oct., expected up 0.2% The precious metal edged
lower on Friday morning, but
Call Toll-Free: +1-866-

- Earnings expected* losses accelerated shortly
Estimate/Year Ago($) after 11 a.m. as volume rose on
Advance Auto Parts a sale of about 40,000 con-
SCOTT OLSON/GETTY IMAGES

1.22/1.73 tracts, or four million ounces

Aramark 0.57/0.49 of gold, which led prices down
    
Cheniere Energy $8 in a span of about 15
(0.18)/(0.41) minutes.
Home Depot 1.82/1.60 Traders said the move
TJX Cos. 1.00/0.91 looked like the liquidation of


, 2017 a large position in the gold
Wednesday Home Depot is scheduled to report quarterly results on Tuesday. market, but with an unclear
 

   
 
   




 management investment company, is subject to catalyst.
Mort. bankers indexes
investment risk, including the possible loss of the entire principal Nov., expected 26.0 Expected 235,000 Nov., expected 25.0 Some noted that it coin-
Purch., previous up 1%
amount invested. Investment return and the 
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#
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economic dilution and voting dilution.   !
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billions of cubic feet
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Crude oil up 2.2 long position and got nervous
&! " 

$ Retail sales (ex autos) Best Buy 0.78/0.62
Gasoline down 3.3 Capacity utilization Gap 0.54/0.60 as the dollar rose,” said Peter
Sept., previous up 1.0% Sept., previous 76% Hug, global trading director at
Investors should carefully consider the Fund’s investment objectives and Distillates down 3.4 J.M. Smucker 1.90/2.05
policies, risks, and charges and expenses before investing. The Fund’s Oct., expected up 0.2% Oct., expected 76.4% Kitco Metals.


 


   



 which contain this Ross Stores 0.67/0.62
and other information about the Fund  available by calling  phone number
Business inventories Wal-Mart 0.97/0.98 A stronger dollar tends to
listed above. An investor should carefully read the Fund’s prospectus 


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Import price index
Sept., expected up 0.1% Estimate/Year Ago($) in the U.S. currency and be-


   

 
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Cisco Systems 0.60/0.61 comes less affordable to for-
not an               
                L Brands 0.30/0.42
Oct., expected up 0.4% Friday
Consumer price index eign buyers when the dollar
       

 
All items, Sept. up 0.5% NetApp 0.69/0.60 Building permits appreciates. Others pointed to
Oct., expected up 0.1% Target 0.85/1.04 Industrial production Sept., previous 1.215 mil. an uptick in short-term bond
12. .
 
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Empire manufacturing Initial jobless claims Philadelphia Fed survey Sept., previous 1.13 mil. metals trading at BMO Capital
Oct., previous 30.2 Previous 239,000 Oct., previous 27.9 Oct., expected 1.18 mil. Markets. “It would usually
* FACTSET ESTIMATES EARNINGS-PER-SHARE ESTIMATES DON’T INCLUDE EXTRAORDINARY ITEMS (LOSSES IN PARENTHESES)
ADJUSTED FOR
move like this on a substantial
STOCK SPLIT NOTE: FORECASTS ARE FROM DOW JONES WEEKLY SURVEY OF ECONOMISTS piece of data.”
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
THE WALL STREET JOURNAL. Monday, November 13, 2017 | B11

MARKETS
THE DAILY SHOT By Lev Borodovsky

Tax Plans Tweak the American Dream U.S. homeownership has been trending upward after years of decline,
but possible changes in tax law could threaten a revival
The Republican tax plans Homeownership rate, quarterly Rental-vacancy rate, quarterly
in Congress add a volatile
new element to the swirling U.S. recessions
75% 15%
dynamics in the U.S. housing
markets. The postcrisis
pressure on homeownership
levels and rental vacancies
finally has subsided, a
hopeful sign for the home-
building and real estate
industries.
70 South
But GOP plans threaten Midwest
that progress, at least in Midwest
some high-income, high-tax 10
areas, by sharply curtailing
state and local tax deduc-
tions that help to keep home U.S.
purchases within reach for South
many buyers. Those markets
65
appear vulnerable thanks to
large recent gains. A U.S.
national housing downturn
doesn’t seem to be at hand, Postcrisis
given the solid performance low
of the economy. But nowa- Postcrisis 5
days, it seems, even taxes are Northeast low Northeast
hardly certain.
60

WSJ
subscribers can get
The Daily Shot—
a chart-by-chart briefing West West
on markets and economics—
sent to their email
each morning. Subscribe at
wsj.com/newsletters 55 0
1990 ’95 2000 ’05 ’10 ’15 ’17 1990 ’95 2000 ’05 ’10 ’15 ’17

The number of renter-occupied homes in Nationally, rent increases are Household formation
the U.S. has declined from a recent peak. now outpacing wage growth. remains sluggish.
Renter-occupied housing units Index of rental costs vs. wages (October 1997=100) U.S. households, percentage change from a year earlier
Rental costs
45 million 175 2%

40 150 Wages 1

35 125 0

30 100 –1
2000 ’05 ’10 ’15 ’17 1997 2000 ’05 ’10 ’15 ’17 2006 ’10 ’15 ’17

Source: U.S. Census Bureau via Federal Reserve Bank of St. Louis (ownership, vacancy, renter-occupied units, formation); Bureau of Labor Statistics via Federal Reserve Bank of St. Louis (rent, wages) THE WALL STREET JOURNAL.

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

How Mobile
Games Keep
Generics Makers Face Legal Risks OVERHEARD
Generic drugmakers and found that a basket of more There are headlines that

Aging Well their investors have so far

Nearly anyone can make a
mobile game these days.
Crafting one with staying
power is the real trick.
Recent quarterly results
from companies like Activi-
sion Blizzard, Electronic
Arts, Zynga and Glu Mobile
show why. All showed sharp
year-over-year increases in
mobile-game revenue for the
period. All were mostly driven
by games that have been
around for years, which offer
plentiful opportunities for in-
game sales as well as large
player audiences for in-game
advertising.
Internet analytics firm
Statista counts nearly 800,000
games in Apple’s App Store
alone, so mobile gamers have
plenty of choices about where
to spend their time. But where
they spend their money
doesn’t shift much.
The growing mobile game
market has been particularly
good for Zynga, which has
spent the past few years re-
covering from the sharp de-
clines of its once popular so-
cial game business. The
company’s mobile revenue
jumped 33% year over year to
$194 million in the third quar-
ter.
Much of that can be cred-
ited to Zynga Poker, the mo-
bile version of the game Zynga
launched for social networks a
decade ago. Zynga uses events
like challenges and league play
to drive in-game revenue. As a
result, Zynga Poker’s third-
quarter mobile bookings
surged 81% year over year.
Of course, nothing lasts for-
ever in the videogame busi-
ness. The quick fade-out of ti-
tles like “Super Mario Run”
show that even wildly popular
franchises don’t always stick
in mobile. But when it comes
to where they spend money,
mobile gamers have proved to
like familiar ground.
—Dan Gallagher
shrugged off a state lawsuit
and federal investigation into
possible price collusion. That
may be the right bet, but there
are a few things that investors
should watch closely.
Attorneys general in 45
states are seeking to expand an
existing collusion lawsuit to 18
companies from six and name
high-ranking executives from
target companies as defen-
dants. The expanded complaint
alleges the companies involved
conspired to fix the price of 15
generic drugs over a number of
years.
While share prices have
been weak, the declines have
mostly been due to poor per-
formance and not the legal is-
sues. Companies that have ad-
dressed the issue, including
Mylan and Lannett, have said
their own investigations have
found no wrongdoing.
Investors who don’t want to
get sideswiped need to watch
for several possible develop-
ments.
Plunging Cable Giant Altice Is Bargain for Brave Investors
Cable group Altice has lost
its Midas touch: That is the
dour message from stock
markets on both sides of the
Atlantic. It might not be a
bad entry point for contrar-
ian investors comfortable
with extreme leverage and a
buccaneering management
style.
Amid sweeping boardroom
changes, billionaire founder
Patrick Drahi took back the
reins Thursday from former
Chief Executive Michel
Combes, who resigned. The
Amsterdam-listed stock of
parent group Altice NV has
fallen 36% in the wake of
weak third-quarter results
and cautious guidance last
week.
The company carries €56.3
billion ($65.67 billion) in
debt—more than three times
Under Pressure
Higher U.S. generic drug approvals have caused prices to fall
800
600
400
200
0 rants, ordered them to produce
FY2013 ’14
Note: Fiscal year ends September 30
Source: Food and Drug Administration
While it is true that none of
the 15 drugs mentioned in the
expanded complaint is an espe-
cially big seller, the govern-
ment is unlikely to stop at mi-
nor products.
Connecticut Attorney Gen-
eral George Jepsen said in an
interview that the publicly
available allegations are the
“tip of the iceberg” and pre-
dicted that his investigation
Altice Way Down
Enterprise value to Ebitda*
since Altice USA's IPO
Charter
12 times Altice USA
Comcast
10
8 terest, taxes, depreciation and
6 discount to John Malone’s
J A S O
*Earnings before interest, taxes,
depreciation and amortization
its equity value—so small
changes in earnings have a
big impact on earnings per
share. Even so, the selloff
looks harsh, taking the stock
back to 2015 lows.
Investors have lost pa-
tience with Altice’s core
French operation, which has
failed to transform substan-
’15 ’16 ’17
THE WALL STREET JOURNAL.
will further expand into new
drugs.
If those drugs are big sell-
ers, that would be a risk for in-
vestors. The deflationary na-
ture of the industry means that
companies tend to earn a large
share of profits from relatively
small parts of the portfolio.
A 2016 study of Medicare
claims data from the U.S. Gov-
ernment Accountability Office
tial capital investment in fi-
ber broadband and exclusive
media content into revenue
growth. Exclude the market
capitalization of listed U.S.
subsidiary Altice USA, and Al-
tice NV is valued at roughly
six times earnings before in-
amortization. That is a big
N Liberty Global, the other Eu-
ropean cable operator, on 10
times, and in line with
growth-challenged former
telecom monopolies like Or-
ange and Telefónica.
Altice USA, too, has lost its
exceptionalism. Manage-
ment’s record of boosting
margins following acquisi-
tions allowed bankers to
price its June IPO at a chunky
premium to larger cable com-
panies Comcast and Charter.
than 1,400 established drugs
fell in price by more than 20%
from 2010 through 2015. How-
ever, industry profits as a
whole grew rapidly over that
time frame.
That investigation is also a
live issue: ANI Pharmaceuti-
cals, a generics company that
sells about three dozen prod-
ucts, said in a securities filing
this month that the govern-
ment served the company and
its employees with search war-
documents and possibly testify
back in September.
Then, there is the risk that
any fallout from the regulators
could crimp any future ability
to raise prices. And years of
splashy mergers and acquisi-
tions, often at fancy valuations,
have weakened balance sheets
across the sector. That means
financial settlements could
sting stockholders more than
they otherwise would.
This is a drug pricing drama
that investors shouldn’t ignore.
—Charley Grant
The shares have since fallen
by a third, valuing the com-
pany at a discount to Charter,
despite fairly solid results.
Investors seem to fear Al-
tice’s problems in France
could spread across the At-
lantic. Mr. Drahi has been
quick to ascribe his success to
the “Altice Way,” an approach
to reviving cable companies
based on cutting costs and
plowing cash flows into new
infrastructure. So it is hardly
surprising investors see the
company’s woes in France,
where Mr. Drahi made his
fortune buying up small cable
operators abandoned by Lib-
erty Global and others, as
systemic rather than local.
It won’t be easy for Mr.
Drahi to fix problems that
stymied Mr. Combes. French
competition is intense. Just
work and there are headlines
that don’t work. The ones that
don’t work can work to compa-
nies’ advantage.
Reporters know that stories
with short punchy headlines
get read. A randomized analysis
by economist Tarik Umar of
posts on crowdsourced invest-
ment research site Seeking Al-
pha proved that is true: Short
headlines, especially short neg-
ative headlines, draw more
readers.
If investors pay less atten-
tion to articles with long head-
lines, then what about corpo-
rate earnings releases. The Rice
University economist found
that, on average, the initial re-
sponse to releases with long
headlines was less trading and
less price movement than for
releases with short headlines.
But over the next month, the
stock prices of the companies
with long headlines adjusted—
up if the release was good,
down if it was bad. Eventually,
the news catches up with you.
like AT&T in the U.S., Or-
ange—formerly France Télé-
com—is busy rolling out fiber
that competes with Altice’s
cable offer.
However, the low share
price probably gives investors
a buffer against further bad
news in France and the re-
sults in the U.S. are still de-
cent.
Investors need a stomach
for volatility and the gover-
nance problems associated
with playing second fiddle to
a single controlling share-
holder. But the flip side of
those problems is that Mr.
Drahi, with 59% of Altice NV
shares as well as stock op-
tions potentially worth more
than €1 billion, has every mo-
tivation to mount a turn-
around.
—Stephen Wilmot
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
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B12 | Monday, November 13, 2017 THE WALL STREET JOURNAL.

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JOURNAL REPORT
Follo
The E w
xper
A ts
THE WALL STREET JOURNAL. Convn Online
© 2017 Dow Jones & Company. All Rights Reserved.
e
DETA rsation
I LS , R2
Where Should You 1.What do you want to do?
OK, it’s a basic question, but it’s one surprisingly
few people ask themselves. They may have some su-
perficial sense about where they want to live, without
Live in Retirement? thinking first about what kind of life they want.
“One of the great things about being in older age,”
says Paul Irving, chairman of the Milken Institute Cen-
First, Ask Yourself
ter for the Future of Aging, “is the opportunity to be
truly honest with ourselves about what’s truly impor-
tant to us. Not what you saw in a television commer-
cial or a newspaper ad, but to think about what really
These Questions matters to you and to your family and how you want
to live the rest of your life.”
Yet that honesty isn’t easy, in part because of those
television commercials and in part because what some-
It’s one of the most basic questions people ask them-
body wants in retirement may be totally different from
what they believed they wanted when they were youn-
ger.
selves when they start planning for retirement: Where am Mike Newes, a real-estate agent in Fort Myers, Fla.,
I going to live? says he often sees couples start their retirements buy-
ing a home in one location. Then, two or three years
It’s also one of the most crucial questions, and one later, they move somewhere else: closer to their chil-
dren, closer to friends, a smaller house—something
that, surprisingly, many people don’t give a lot of thought that supports the lifestyle they want in retirement.
They waste a lot of time, and a lot of expense.
to. Sure, they ask themselves some cursory People really don’t think about what they want to
BY
CHRIS questions—especially about the weather and do with their retirement, he says. They think: “ ‘I want
to not do this.’ But what do you want to do?”
KORNELIS affordability. But they rarely delve very
deeply, even though making the right choice 2.Isgrandchildren?
Skype close enough to your
can offer a greater chance of having a more fulfilling life. These days, thanks to technology, people thinking
about retirement dismiss proximity: We can always Fa-
“People really need to figure out what they’re looking ceTime every day, they figure.
But they quickly discover that it doesn’t work out
for,” says Dorian Mintzer, a Boston psychologist and co- that way. Family, and especially children, aren’t as ea-
author of “The Couple’s Retirement Puzzle.” “Often peo- ger to tell the grandparents about their day, even if
they can see them on their phones.
ple don’t think about what kind of life they want. Do they As a result, says Neil Brown, a certified financial
planner at Burkett Financial Services in West Colum-
want to do volunteer work? An encore career? Is that a bia, S.C., people often misjudge the distance they’re
putting between themselves and their families. They
factor in terms of where they live?”
With that in mind, here are nine questions people
think that between Skype, text messaging and “just
jumping on an airplane,” they will remain close, he
says.
should ask themselves before they answer the big ques- Bert Sperling, the founder of BestPlaces.net—a web-
site that studies and provides research on cities and
tion about where. places—says a real-estate agent recently told him that
INSIDE
The Best Way to Find Protecting the Nest Egg
Meaningful Volunteer Work In Case of Disaster
Also: Answering readers’ questions Steps to take to safeguard your
on 401(k)s and Social Security home and your savings
R2 R4
Robo Advisers Turn To Retirees The Psychological Benefits
We took four services for a test Of Writing a Memoir
drive. Here’s how they compared. Even if nobody reads the book, it
R3 can help make sense of your life
R5
Ready to Downsize?
There’s Plenty of Help The Hidden Disease That
There’s good money in helping Affects the Middle-Aged
boomers and parents relocate Ailments of the liver are on the
R4 rise, but many aren’t aware
R6
Monday, November 13, 2017 | R1
STEVE SCOTT
he sells the same homes to the same kinds of people
every five or six years: retirees who want to stare at
the ocean and have a place on the beach for family to
visit. But after a few years, they discover that they
don’t need to look at the ocean every day and their
families are busy and don’t visit as often as they
thought they would.
So before deciding on that first move, ask yourself:
How likely is your family to stay put? People change
jobs much more quickly today, and it isn’t uncommon
for people to move to be near their children and
grandchildren—only to have the children pack up their
families shortly afterward. In other words: Are you
willing to be the trailing grandparents?
3.Are you open to renting?
Financial advisers say it can be hard for retirees
who have spent their lives building equity in their
homes—and being taught about the virtues of home-
ownership—to become renters. It feels like throwing
money away. But renting a home in a city before buy-
ing can give retirees a chance to really know if it’s the
place they want to spend retirement.
Dave Bensema, a wealth-planning consultant at
BMO Private Bank in Chicago, says it’s especially com-
mon for people to retire somewhere they’ve been
while on vacation. He cautions that the two experi-
ences are completely different. Renting a home for a
year lets you get to know the area in all its seasons—in
terms of weather, culture, politics.
“What you’ll put up with on vacation for a week,”
Mr. Bensema says, “is different than something you’d
put up with every day.”
Renting can also give people a chance to see the
area from the perspective of a residential neighbor-
hood, not a hotel. Even if they don’t want to spend an
entire year as a renter, Mr. Sperling says, people can
stay in an actual neighborhood for a few weeks or
months thanks to Airbnb. They can then get the feeling
of the part of town they’re likely to live in, as opposed
to going to bed at night by the beach or downtown.
4.Will your doctor accept Medicare?
When planning for retirement, health care is of-
ten not even on the list of considerations. After all,
people in their 40s, 50s and even 60s find it hard to
anticipate the physical ailments ahead.
Please turn to the next page
Dementia’s Tragic Toll
On Families
It often pits siblings against one
another, but it doesn’t have to
R8
The Best Books of 2017
On Healthy Aging
Great reads for nurturing minds,
bodies and pocketbooks
R9
The Older I Get,
The Less I Seem to Know
They say wisdom comes with age.
Not the kind I always cared about.
R12
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
R2 | Monday, November 13, 2017 THE WALL STREET JOURNAL.

JOURNAL REPORT | ENCORE

ASK ENCORE | GLENN RUFFENACH

The Best Way to Find Meaningful Volunteer Work

Also: Answering readers’ questions on 401(k) accounts and Social Security
I would like to spend more i i i
time volunteering when I re-
tire, but I know that finding I recently turned 62. I am employed but plan
meaningful work isn’t always to change jobs. My problem is that I will need
easy. Any suggestions how to to support myself without a paycheck for at
go about this? least six months while I make the transition
to a new field. Can I receive Social Security
To start, and as counterintuitive as this for six to eight months, then go back to
might sound, put yourself first. work, stop receiving Social Security and have
Yes, volunteering invariably begins with the my earnings from my new job count toward
notion of sacrifice. But a big incentive for my earnings record when I eventually retire?
many people—and what keeps them coming Or is the decision to receive Social Security
back—is what they get from the work, benefits irrevocable? Essentially, I am asking
whether it’s friendships with fellow volunteers, whether I can use Social Security to fund a
or pats on the back. sabbatical before I move on to a new career.
Put another way, seek out work where you
might benefit. It’s certainly an interesting thought. And
Volunteers at first “tend to focus very heav- you are able to stop benefits after you begin
ily on the idealism of giving back,” says Marc collecting them. But this plan probably won’t
Freedman, CEO of Encore.org, a nonprofit that work—at least not in the way you imagine.
promotes encore careers. But there are also Once you begin collecting Social Security,

“more immediate aspects that appeal to them:
being part of a group or a team, giving them-
selves a reason to get up in the morning, or a
place to go, or a schedule to live by.” He adds:
“The relationships and a sense of purpose are
just as important as some of the more lofty
ideals in getting a satisfying experience.”
Learning opportunities are a good example
of this. Many people donate their time to mu-
seums, gardens and the like. The work is fre-
quently its own reward. But these same volun-
teers, in many cases, also enjoy perks: lectures
by curators, an early look at new exhibits, invi-
tations to functions. Again, when sizing up
nonprofit opportunities, there’s nothing wrong
with considering how you might, well, profit.
Along these same lines, look for a place or
organization that’s “volunteer-centric.”
All nonprofit groups and social-service
agencies are structured differently. A library
may have a small number of volunteers to as-
sist visitors and shelve books. But it isn’t set
up to offer frequent orientation, training, field
trips and seminars solely for its volunteers.
In contrast, groups organized to train and
put volunteers to work tend to offer more—
more educational opportunities, more chances
to mingle with fellow recruits and more recog-
nition—all of which may grow in importance
when volunteer work replaces a career.
One retiree told us about the recognition
she received through the Court Appointed
Special Advocate program, known in some
communities as the guardian ad litem pro-
gram, in which volunteers speak up for abused
and neglected children in the courts. After 40
hours of training, she and her colleagues were
sworn in by a judge.
“The judge thanks you in court, and you
feel like you’re a professional,” she says.
i i i
I am currently maximizing regular and catch-
up contributions in my company’s 401(k) pro-
gram. The regular contributions are directed
JOHN CLARKSON
you have 12 months in which to change your
mind and ask the Social Security Administra-
tion to stop payments. This is what’s known
as a “withdrawal of application”; in the eyes of
Sierra Club volunteers have nice work environments; in the Idaho panhandle, for example. the agency, you are withdrawing your original
application for benefits.
So, in that sense, Social Security is not an
Volunteers: By the Numbers irrevocable decision. But there are several
In 2015, almost 63 million adults in the U.S. volunteered through an organization. catches here.
In the 65-plus demographic: First, you can take this step of starting and
stopping benefits only once in your lifetime.
Pct. who volunteered Adults age 65-plus volunteered most frequently with these groups: Second, if you withdraw your application for
23.5% benefits, you must pay back to the Social Se-
curity program all of the money you have re-
Number of volunteers Social/ 8.9% | Education/youth service ceived to date. What’s more, the mechanics of
community
11 million service
doing this (you fill out a one-page request)
7.9% | Hospital/health aren’t as easy as they appear, says Mike Piper,
Hours of service 18.6% author of “Social Security Made Simple.”
1.9 billion “Many Social Security Administration em-
7.1% | Civic/political/professional ployees aren’t particularly familiar with the
Service contributed Religious process,” he says. And “there can be tax rami-
$45.4 billion 4.4% | Sport/hobby/cultural/arts fications resulting from the repayment of ben-
43.9% efits that you received in a prior year.”
Median hours Finally, let’s say you start Social Security
9.3% | Other
90 during your break and simply let benefits con-
tinue once you return to work. You might not
Numbers don’t total 100% due to rounding. be happy with this approach, either. First,
Source: Corporation for National and Community Service, “Volunteering and Civic Life in America” THE WALL STREET JOURNAL. starting payments at age 62 or 63 reduces
your monthly check considerably (and perma-
to a Roth 401(k). However, the company ad- closing in on retirement beef up their nest nently) from what it would be at your “full re-
ministrator advises me that catch-up contri- eggs. Note: The limit on catch-up contribu- tirement age,” as defined by Social Security.
butions can only be directed to a traditional, tions for 2018 remains unchanged at $6,000. Second, the wages from your new job, if they
pretax account, based on the company’s cur- What to do? “I would get [this restriction] exceed a certain level, could run up against So-
rent plan rules. Is there a reason in the tax in writing from the plan administrator,” sug- cial Security’s “earnings test”; that, in turn,
code that catch-up contributions cannot be gests Ed Slott, an expert on retirement-sav- could reduce, or even eliminate, your monthly
directed to a Roth account? ings accounts in Rockville Centre, N.Y. “That check until you reach full retirement age.
will at least force someone [at the plan] to All of which argues for considering other
Actually, the tax code allows for catch-up check if this is actually true.” ways to fund your sabbatical, even if it’s a bit
contributions to be made to a Roth 401(k). I Another possibility: There could be confu- of a temporary stretch.
don’t know why your plan has this limitation. sion about catch-up contributions vs. employer
Most people, in 2017, can contribute a max- matching contributions, which can’t go to a Mr. Ruffenach is a former reporter and editor
imum of $18,000 to their 401(k). (That figure Roth 401(k). “Employer matching contributions for The Wall Street Journal. His column exam-
jumps to $18,500 in 2018.) But employees can go only to the pretax 401(k) side of the ines financial issues for those planning and liv-
age 50 and older can contribute an additional plan, so maybe that’s where the disconnect ing their retirement. Send questions and com-
$6,000. This rule is designed to help people is,” Mr. Slott says. “It’s worth asking about.” ments to askencore@wsj.com.

Where Should
Mr. Brown, the certified financial planner, tirement planning, what are those little mo- says. ““But isolation may be as bad or worse
says one client just told him that he moved to ments, those little things that only you, not than both of them.”
a place where he had to go to three different even your spouse, know that will make you

You Live in
medical practices to find someone who would
accept new Medicare patients.
smile? And from a transportation point of
view: Do you have access to it?” 8.How busy is this place going
to get?
Another way to think about this question is: If

Retirement? 5. 6.
How are you going to get an How are you going to change you are thinking about moving to a place, it’s
ice-cream cone? your lightbulbs? likely others are, too. And because people are
This is one of three retirement destination Mr. Coughlin says people often make the mis- living so long, it is worth thinking about what
Continued from the prior page questions that Joseph Coughlin, director of take of planning for themselves today, not the a community will look like in, say, 20 years.
But Stephen Golant, a gerontologist and ge- MIT’s AgeLab, addresses in his new book, “The people they will become later in retirement. At Mr. Newes, the Florida real-estate agent,
ographer at the University of Florida, says Longevity Economy.” He says the question is 65, changing a lightbulb, fixing an appliance says people consider how much an area will
finding a health-care provider in retirement about knowing what makes you happy, and and taking out the trash might not be some- grow and whether it can support the new de-
should be a major point of discussion. It’s diffi- making sure you know you’ll be able to access thing people struggle with. But they may need velopment. He obviously knows this too well:
cult, he says, to find a doctor that you’re com- it even if you can’t drive, even if you can’t ar- help with those tasks when they’re 85. He says that people moved to Florida’s east
patible with when you move to a new city and range a van to pick you up, and even if you “Having money is great,” he says, “but un- coast thinking it would be 30 minutes between
have a half-dozen prescriptions. can’t ask a child or friend to give you a lift. less you have those additional services to en- X and Y, and now it takes 60 or 90 minutes.
“It’s very hard to find new, reliable doc- “Life is made of these little moments—not able you to live well, then that’s not necessar-
tors,” he says. “Older people, despite the hype
they hear, have to be prepared for their bodies
to experience some decline that needs to be
punctuation points like Christmas dinner and
a trip to Italy—but the little moments: getting
a newspaper, getting a cup of coffee,” he says.
ily a good retirement. That’s a subsistence
retirement.” 9.What’s wrong with where I
live now?
This is perhaps the most important question
responded to and treated.” “You have to understand when you’re doing re-
7. Who are you going to have
lunch with?
Perhaps one of the most important aspects of
people should ask. A lot of people assume that
they will move in retirement. But the fact is
most people don’t. In fact, Danielle Hale, chief
Decisions, Decisions ... picking the right place to retire is the social economist for Realtor.com, says that 85% of re-
How people think about relocating in retirement, based on a survey of adults 18 or older, from March 2017 one. Who are you going to see on a daily ba- tirees stay in the area where they raised their
sis? Who will be in your social circle? Who are families.
Would you consider moving Those who identified the following to be one of the most important you going to have lunch with? There’s a reason for that. Mr. Irving says
to another city or state when or a very important factor in deciding if a place is good for retirement “Isolation is perhaps the greatest pandemic people have often spent their entire lives
you retire? facing an aging society,” Mr. Coughlin says. building a community in one location. Moving
Men Women Aged 50-64 All respondents
“Because you’ve spent an entire life, generally to, say, a warmer climate, may sound appeal-
80% speaking, where things come to you, people ing, but he cautions that people should think
NO YES YES
NO 41% 60 come to you, you’re in the flow that work and about what they’ll be leaving behind, and if
43% 54% 54% society and volunteering and church and ev- they would trade a lifetime of friends, family,
40 erything gives you. And as you age, you’re cultural institutions and familiar roads for
20 likely to do less, get out less. As a result, fewer more days of sun a year.
Men Women people are coming to you.” “Aging well is about more than warm
0
It’s therefore crucial, he says, that part of weather,” Mr. Irving says. “It’s about more
Cost of Health- Crime Culture Weather Taxes Lots of preparing for retirement “is to make sure you than leisure. It’s about ongoing opportunities
YES YES living care rate and other put yourself in the flow of constant chance col- for engagement and connection and lifelong
NO NO
43% quality activities retirees
54% 49% 47% lisions of new friends and relationships.” learning.”
Note: Answers based on those who would consider moving Mr. Irving of the Milken Institute echoes
Source: Bankrate Inc.; Princeton Survey Research Associates International that warning. “We talk a lot about the fact that Mr. Kornelis is a writer in Seattle.
Aged 50-64 All respondents THE WALL STREET JOURNAL. sitting may be as bad for you as smoking,” he Email him at reports@wsj.com.

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THE WALL STREET JOURNAL.
Robo Advisers Turn Toward Retirees
We took four services for a test drive. Here’s how they compared.
BY ANNE TERGESEN
ROBO-ADVISORY SERVICES that
pair algorithms with human help
have long been popular with millen-
nials because of their low fees. But
as baby boomers increasingly em-
brace the trend, too, many compa-
nies are adding features for retirees.
These services used to focus
mainly on helping clients save for fi-
nancial goals such as retirement.
Now, they also offer tax-efficient
strategies for turning nest eggs into
steady streams of retirement in-
come, as well as recommendations
on Social Security, Medicare and
long-term-care insurance.
Client demographics explain the
shift. Industry leader Vanguard
Group says 85% of those enrolled in
its $93 billion Personal Advisor Ser-
vices are over age 50. Among partic-
ipants in Charles Schwab Corp.’s In-
telligent Advisory service, 53% are
older than 55.
“Eighty percent of investible as-
sets are held by people 50 and over,”
says Matt Fellowes, chief executive
of United Income Inc., a new service
backed by investors including Morn-
ingstar Inc. that focuses on people
ages 50 to 70.
To see what people in or near re-
tirement can get from a robo-type
service, we test drove offerings from
Vanguard, Schwab, United Income
and Betterment LLC—with the firms’
knowledge and support—using data
from “Ellen and Greg,” a hypotheti-
cal 65-year-old couple in suburban
New York who are about to retire.
We answered questions about the
couple’s annual income ($300,000),
after-tax spending ($126,000), sav-
ings ($2 million), and desire to sell
their $1.5 million home to buy a
$1.75 million Manhattan apartment.
The process took from 10 to 45
minutes, depending on whether we
let the services estimate the couple’s
spending or took the time to manu-
ally enter details including their
budget.
Using screen-sharing technology,
we spent about an hour with advis-
ers at each firm. We got answers to
key questions, including whether the
couple can afford to retire, when
they should claim Social Security,
and how they should allocate their
JOURNAL REPORT | ENCORE
investment portfolio.
While we were impressed with
much of the advice overall, we found
some important differences between
the services.
Here are our reviews:
BETTERMENT PREMIUM
Price: 0.4% (with no fees on bal-
ances above $2 million), plus invest-
ment fees of 0.07% to 0.16%.
Minimum investment: $100,000
Review: Our adviser, Garrett Oakley,
said Ellen and Greg have a 97%
chance of being able to maintain
their desired spending until age 90—
Betterment’s default life expec-
tancy—even after using the proceeds
from selling their $1.5 million home,
plus $400,000 in savings, to pur-
chase a $1.75 million apartment.
(The $400,000 would cover the dif-
ference in price, plus capital-gains
taxes and transaction fees on the
home sale.)
Still, to minimize the drain on
savings and find a way to pay for
Eliminate the guesswork.
Get a clear picture of when to claim Social Security.
Monday, November 13, 2017 | R3
tain quotes for long-term-care insur-
ance, and set up an emergency fund
to cover three to six months of ex-
penses, tasks the other advisers ad-
dressed as well. Mr. Porter raised El-
len’s life expectancy to age 96 from
the program’s default age for women
of 93, due to her family’s longevity.
Schwab gave our couple a 45%
chance of having enough to buy the
apartment and maintain their spend-
ing in retirement through age 91 for
Greg and age 96 for Ellen. The prob-
lem, Mr. Porter said, is that after
selling their $1.5 million home to pay
for a $1.75 million apartment, they
will have to withdraw $600,000 from
their savings to cover the price dif-
ference, plus capital-gains taxes and
transaction fees on the home sale.
To boost their odds of success, El-
len and Greg should reduce their
budget by $1,700 a month or buy a
cheaper apartment, Mr. Porter said.
Mr. Porter recommended a port-
folio of bonds, dividend-paying
stocks, real-estate investment trusts
and other income-producing invest-
ments from firms including Van-
guard, Schwab and BlackRock Inc.
CARL WEINS
Pro: The program is easy to use. It
lets users drag-and-drop pictures of
goals (“new home,” “travel”) into
their financial plan and assess the
Our guinea pigs: A in stocks and 70% in bonds over
time.
impact of reducing spending, work-
ing longer or saving more. It also of-
hypothetical suburban Pro: The program includes tools fers a choice between a 10-minute
New York couple who that estimate expenses based on a
client’s ZIP Code and income and can
“express” sign up and a more de-
tailed 45-minute version.
are about to retire. link to a client’s Social Security ben- Users don’t have to decide
efits statement. whether to become a client until the
We appreciated the guidance with financial-planning process is com-
long-term-care insurance, Mr. Oakley Medicare. plete.
advised Ellen and Greg to purchase a Con: Betterment’s default is to as- Con: Schwab recommended a 12%
slightly cheaper apartment. sume clients claim Social Security allocation to cash—which was much
For new Medicare enrollees, Bet- when they retire rather than recom- higher than what the other services
terment often recommends tradi- mending claiming dates that are advised and could be a drag on re-
tional Medicare plus a Part D pre- likely to produce the highest cumu- turns in a rising market. (Its other
scription-drug plan and a lative lifetime benefits. recommendations: 54% in stocks,
supplemental “Medigap” plan. Al- 29% in bonds, 5% in commodities.)
though the alternative, private Medi- A Schwab spokesman said “cash is
care Advantage—which operates like SCHWAB INTELLIGENT an important asset class in a diversi-
a health-maintenance or preferred- ADVISORY fied portfolio” and is something
provider organization—often has “most investors care about,” espe-
lower premiums, it can expose par- Price: 0.28% (with payments capped cially when in or near retirement.
ticipants to higher out-of-pocket at $3,600 a year), plus investment Mr. Porter instructed Greg and El-
costs if they go outside a plan’s net- fees of 0.07% to 0.22%. len to enroll in Medicare as soon as
work, Mr. Oakley said. Minimum investment: $25,000 possible. We were hoping for more
Betterment recommended that El- Review: Our adviser, Andrew Porter, detailed guidance on navigating the
len and Greg invest 56% in stocks ran through a checklist of questions choice between Medicare Advantage
and 44% in bonds at the beginning and told Greg and Ellen to review and traditional Medicare—guidance
of retirement and scale back to 30% their will and monthly budget, ob- Please see ROBOT page R4
At Fidelity, we have the tools and expertise to
help you manage Social Security.
• Determine when to claim and how much you may receive
with our Social Security benefits calculator
• See how Social Security fits into your broader retirement
savings goals in the Planning & Guidance Center
It’s your retirement. Know where you stand.
800.FIDELITY | Fidelity.com/SSCalculator
Investing involves risk, including the risk of loss.
This calculator is for illustrative purposes only.
Fidelity does not provide legal or tax advice. The information herein is general and educational in nature and should
not be considered financial, legal, or tax advice. Fidelity cannot guarantee that the information herein is accurate,
complete, or timely. Fidelity makes no warranties with regard to such information or results obtained by its use, and
disclaims any liability arising out of your use of, or reliance on, such information. Visit www.ssa.gov when you’re ready
to learn more about filing and about your personalized Social Security statement and estimated benefit.
The trademarks and/or service marks appearing above are the property of FMR LLC and may be registered.
Fidelity Brokerage Services LLC, Member NYSE, SIPC. © 2017 FMR LLC. All rights reserved. 812677.1.0
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
R4 | Monday, November 13, 2017 THE WALL STREET JOURNAL.

JOURNAL REPORT | ENCORE

Ready to Downsize? There’s Plenty of Help

Entrepreneurs are finding there’s good money in
helping boomers and their parents relocate
BY JULIE HALPERT
DOWNSIZING IS becoming big
business.
It’s all about demographics:
Entrepreneurs have found a
lucrative niche in helping the
growing number of baby
boomers, and their aging par-
ents, downsize and move.
Consider Kimberly McMa-
hon, who in 2006 co-founded
Let’s Move, which helps se-
niors in Baltimore and Wash-
ington, D.C., downsize and re-
locate, often to residences in
retirement communities. Her
business reduces, packs up
senior relocation and transi-
tion services, was founded in
2006 and now has 178 franchi-
sees—17 of which opened this
year, according to the com-
pany. Its franchises have
served 19,000 clients so far,
says Tiffiny Vanjohnson-Lutz,
the company’s director of mar-
keting, who adds that business
has “rapidly expanded over
the past five years.”
‘It’s draining’
Demographics are the key
driver of growth, says Mary
Kay Buysse, executive director
of the Senior Move Managers
association. Baby boomers
perienced 15% growth a year
over the past three years,
serving roughly 1,000 seniors a
year, with the average move
costing $3,000 to $5,000. Em-
The stressful emotions can ployees sort through every-
be another reason why many thing and use a magnetic
people turn to professionals for floor-planning board to deter-
help. The pitch by the compa- mine what the client’s new
nies is that they offer a trusted space will be able to accommo-
intermediary that can help date. They contract out for the
families avoid friction at a sen- physical move, but at the other
sitive time, says Carol Bradley end they unpack everything,
Bursack, a consultant on care- and even make the bed and
giving and aging issues. These connect the electronics. Half of
services can provide their cus- Mr. Gunderson’s business now
tomers with “emotional empa- comes from retirement com-
thy,” Ms. Bursack says. munities that pay for part or
Some retirement communi- all of his company’s services
ties help cover downsizing and for new residents, he says.
relocation services as an en- Rita Coulter, 87, of Alta-
ticement to new residents, Ms. dena, Calif., hired Gentle Tran-
Buysse says. Or they may pro- sitions to help her move from
vide a list of recommended se- her 2,000-square-foot condo

and moves households, and
makes its clients comfortable
in their new homes, hanging
pictures, for example, and
even making beds.
“There is more business
than we can handle,” says Ms.
McMahon, a former sales di-
rector at Lucent Technologies.
She says her company has
served 5,500 clients so far and
has grown an average of 50% a
year for the past decade.
“This industry is booming,”
she says.
The National Association of
Senior Move Managers, a
trade group based in Hinsdale,
Ill., has seen membership
grow steadily since its launch
in 2002. Its roughly 950 mem-
ber companies reported $225
million in total revenue in
2016, the first year the associ-
ation requested the data. This
year, it says its membership
has grown to nearly 1,000.
Caring Transitions Inc., a
Cincinnati-based franchiser of
The stress of
downsizing is one
reason people turn
to professionals.
want to help their parents
downsize and relocate, she
says, but are often busy jug-
gling work and family. A third-
party professional is often the
best option to do this kind of
work, she says, especially
when a relocation becomes
necessary due to a crisis. Even
under the best of circum-
stances, it’s a difficult task.
“Going through a lifetime of
possessions and taking a
house that’s 2,500 square feet
and moving to a 400-square-
foot assisted-living commu-
nity, it’s not easy work,” says
Ms. Buysse. “It’s draining for
everybody.”
nior moving companies. Poten-
tial clients should not blindly
accept such help, or hire a ser-
vice independently, without
first doing some checking on
the contractor providing that
service.
When dealing with vulnera-
ble seniors and their valu-
ables, it’s essential to hire a
trustworthy company, Ms.
Buysse says. Companies that
belong to her association, for
instance, must undergo a four-
course training program with
testing, she says. The group
also has a peer-review com-
mission if a customer has a
complaint.
Ms. Bursack, the consultant,
says any company needs to be
bonded and insured. Ask for
references, she says, and check
with the Better Business Bu-
reau to see whether it has
been the subject of a com-
plaint. Reading online reviews
also is helpful.
Interviewing the movers
LET’S MOVE
Companies that help people downsize and relocate are thriving.
themselves is key, Ms. Bursack hourly rate. Costs tend to range
adds. Ask yourself, “Do they from $40 to $125 an hour, de-
love what they’re doing pending on the region, accord-
enough to do this well, or are ing to Ms. Buysse. Ms. McMa-
they just in it for the money?” hon says her company typically
A good service will stand back charges $65 to $75 an hour for
and let the elder reminisce as its services, which include ar-
objects are packaged, Ms. Bur- ranging for the sale or removal
sack says. They’ll sympathize, of unwanted items. Total costs
but not dissolve into tears, as for each job typically are
family members might. $5,000 to $10,000, she says.
Demand is expected to
grow even more, Ms. Buysse Move-in ready
says, as boomers themselves Many companies in this
continue to age in the coming business provide a compre-
years. hensive service: first deciding
“We’re still five to seven what to throw away, donate or
years away from critical sell, followed by packing and
mass,” she says. Right now, moving, holding estate sales
she says, the oldest of the 79 and preparing houses for sale.
million boomers are just 71. Greg Gunderson, who
The service isn’t cheap. started Gentle Transitions in
Some companies will charge a Manhattan Beach, Calif., in
set fee in advance, others an 1994, says his company has ex-
to a 1,275-square-foot home in
a retirement community. Her
daughters had helped her with
an earlier move, she says, and
she didn’t want to burden
them again.
Employees worked with her
to determine what could be
accommodated at her new lo-
cation—down to the number
of pots and pans—and helped
her donate or dispose of what
she wasn’t taking.
They unpacked everything
in her new home while she left
for a few hours. When she re-
turned, she says, her paintings
were hung and crystal was
displayed as it had been in her
prior condo.
“When I walked in, they
had the lights on softly and
they had music playing,” Ms.
Coulter says. “My daughters
thought it was terrific.”
Ms. Halpert is a writer in
Michigan. She can be reached
at reports@wsj.com.

Robot
Continued from page R3
Schwab says its advisers are
able to provide.
Schwab’s default assump-
tion is that investors will
claim Social Security at full
retirement age. The com-
pany, however, says its ad-
visers can identify claiming
dates designed to produce
the highest cumulative life-
time benefits.
UNITED INCOME
Price: 0.5% to 0.8% (with
discounts for accounts val-
ued at more than $500,000),
plus investment fees of 0.1%
JOSH EDELSON/AFP/GETTY IMAGES
takes on such tedious tasks
as filing for Social Security
and Medicare, something the
other services don’t offer.
The company assigns cli-
ents willing to pay 0.8% a
year to a specific adviser.
You can create and update
a financial plan and talk to
an adviser up to four times
without becoming a client.
Con: Unlike the other ser-
vices, United Income doesn’t
allow clients to link their
bank and other financial ac-
counts to its software, so ei-
ther the adviser or the client
must periodically update
those values manually.
VANGUARD PERSONAL
ADVISOR SERVICES

to 0.25%.
Minimum investment: Fi-
nancial plans and Social Se-
curity advice are free;
$10,000 for those services
plus investment manage-
ment; $300,000 for every-
thing in the lower tiers plus
a dedicated adviser.
Chimneys were all that remained of some of the many homes destroyed by fire in Santa Rosa, Calif., last month. Review: Ellen and Greg’s ad-
viser, Ben Meirowitz, gave
Price: 0.3%, plus investment
fees that range from 0.04%
to 0.12%
Minimum investment:
$50,000
Review: Our adviser, who
identified himself only as
Bryan, gave Greg and Ellen a
94% chance of success, as-
suming both live to 100.

If Natural Disaster Strikes, Be Ready

Three steps people should take ahead of time, just in case.
If you live in an earthquake-prone
BY VERONICA DAGHER
area, consider having a licensed contrac-
tor check your chimneys, roof and foun-
WHEN A NATURAL DISASTER strikes, it dation for stability, and identify where
can wreak havoc on victims’ lives in ways your gas, electrical and water main shut-
they might not have expected. These off valves are located. These lines can
threats are even greater for older people separate from their connection points
living on a fixed income who may not during an earthquake, raising the risk of
have the resources to recover from such fire, says Fran O’Brien, division presi-
hardships. dent, North America personal-risk ser-
In light of recent natural disasters, se- vices group at Chubb Ltd. Some home-
niors may want to act now to protect owners may want to consider automatic
themselves against possible future losses. seismic gas shut-off valves that can stop
Here are few simple steps to consider: the flow of gas when there is an issue.
Good home maintenance also can help
them a 99% chance of having
enough to last until Greg is
97 and Ellen is 102, even if
they buy the $1.75 million
apartment. To maximize
their odds, Mr. Meirowitz
gency Management Agency, or FEMA, told them to delay claiming
suggests setting aside emergency cash in Social Security until 70 and
small bills to buy food, fuel or water in live on IRA withdrawals in
case ATMs aren’t available. the meantime.
If you receive federal benefits by pa- United Income recom-
per check, request direct deposit mended that the couple in-
(www.godirect.gov) so you can continue vest the money they will
to receive payments if mail service and need for essentials, such as
banks are shut down, Ms. Stokes says. food and housing, more con-
Walk around your home and video all servatively than the money
of your items of value. Narrate as you go, they will need for luxuries
stating the brand, when you bought the and health care.
item and how much you paid, she says. If To project the couple’s fu-
your phone doesn’t have this capability, ture spending, the company
write down this information and keep it used results from a national
That’s premised on the idea
that Ellen and Greg can
spend slightly more than the
annual amount they will
need from their portfolio to
supplement Social Security
when the markets do well,
but will have to cut back a
bit when stocks decline.
Vanguard recommended
60% in stocks and 40% in
bonds. The adviser suggested
replacing non-Vanguard with
Vanguard funds in tax-de-
ferred accounts, but main-
taining the status quo in tax-
able accounts to avoid
triggering capital-gains tax
bills. (Vanguard says clients
who want to retain existing
funds can do so.)

1. Understand Your Insurance

Before a disaster hits, check your
homeowners- or renters-insurance policy
to see if you’re covered for “replacement
cost” or “actual cash value” for your pos-
sessions, says Kathy Stokes, senior ad-
viser, financial resilience at AARP.
If you’re covered for replacement cost,
your insurer will pay the full cost of re-
placing an item with one just like it. If
you’re covered for actual cash value, the
insurer will take into account the loss in
an item’s value over time. That means an
$800 sofa that is four years old may have
no cash value, according to the insurer’s
calculations, she says. Seniors with this
type of coverage may want to set aside
added funds.
Be aware that homeowners and rent-
ers policies don’t cover damage from
flood or earthquakes. You may be able to
purchase earthquake coverage as an add-
on to a standard policy or as a separate
policy. Flood insurance generally is avail-
able only through the federal govern-
ment’s National Flood Insurance Pro-
gram for those living in certain
communities.
protect your property in the event of a
disaster, she says. Some 75% of trees that
fall during weather events suffer from
pre-existing and often correctable condi-
tions, she says.
Trimming tree limbs to 15 feet off the
ground or one-third of the total crown
height (whichever is less) can help pro-
tect a home in a wildfire, she says.
2. Protect Paperwork, Valuables
You don’t want to have to scramble
to gather important paperwork after a
disaster hits, AARP’s Ms. Stokes says, so
scan financial, medical and identifying
documents now, so they’re available in
electronic form. Scan bank statements,
insurance policies and cards, your
driver’s license, passport and Social Se-
curity card.
Save this information on an external
hard drive or flash drive that you can
keep safe in a disaster-proof box, she
says. Be sure to password-protect the in-
formation.
Write a list of your doctors, their con-
tact information and your prescriptions
and keep it in this box, as well.
A spokeswoman for the Federal Emer-
in your disaster-proof box. study that finds, for exam-
ple, that higher-income cli-
3. Create a Kit, Tell Your Family
A guide created by the American
Institute of Certified Public Accoun-
ents face smaller annual in-
creases in health-care costs.
United Income avoids
tants, the American Red Cross and the long-term-care insurance be-
National Endowment for Financial Educa- cause it believes the market
tion suggests creating an easily portable, is unstable. To cover those
disaster-supplies kit to meet your needs costs, Mr. Meirowitz sug-
for at least three days and up to two
weeks. Items in this kit should include
water, nonperishable foods, batteries and
gested Ellen and Greg invest
money earmarked for health
care more heavily in stocks,
emergency-contact information. which have higher potential
Meet with family and friends to create returns.
a disaster plan that includes if and how When designing portfo-
you plan to evacuate. Ask about emer- lios, United Income esti-
gency plans in your community, and if mates the lifetime value of
you receive home care, speak with your clients’ Social Security bene-
case manager to see how he or she might fits and—because those ben-
be able to help, the Red Cross says. efits are guaranteed—adds
Finally, make a plan for your pets as them to the bond side of the
they usually aren’t permitted in emer- portfolio. To balance out that
gency shelters. higher bond allocation,
United Income advised the
Ms. Dagher is a Wall Street Journal re- couple to put 65% of their in-
porter in New York and host of the Se- vestment portfolio in stocks.
crets of Wealthy Women podcast. Pro: For clients who pay
Email veronica.dagher@wsj.com. 0.8% a year, United Income
To maximize the couple’s
lifetime Social Security bene-
fits, Bryan advised the lower
earner, Greg, to file at 66, so
Ellen can claim a spousal
benefit while delaying her
own benefit until age 70.
Pro: Users don’t have to de-
cide whether to become a
client until after they review
the financial plan.
Vanguard assigns clients
with $500,000 or more to a
dedicated adviser
Con: None that were imme-
diately apparent.
It’s important to note that
robo-advisory services aren’t
for everyone. People with
complicated needs or who
need or want a lot of hand-
holding may be better off
with independent advisers.
Ms. Tergesen is a reporter
for The Wall Street Journal
in New York. Email her at
anne.tergesen@wsj.com.
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
THE WALL STREET JOURNAL. Monday, November 13, 2017 | R5

JOURNAL REPORT | ENCORE

The Psychological Benefits of Writing a Memoir

Even if nobody ever reads the
book, it can help people make
sense of their lives
BY LISA WARD
IS IT WORTH writing a mem-
oir if no one will ever read it?
Millions dream about spin-
ning their life story into a
says, the message stayed the
same, but some of the details
were left out.
Making changes based on
who will read the finished
product reveals another truth
about memoirs: There is a
barrier island near Venice, huge difference between writ-
Fla., Ms. Huneke raised her ing a memoir for yourself and
five daughters alone after her writing it for an audience. By
husband left. writing for others, the author
Her memoir describes the may be tempted to omit de-
“blur of misery” she felt in the tails or even change the story,
early days of their rupture. But compromising the process for

ZACK WITTMAN FOR THE WALL STREET JOURNAL

best-seller. Most never get
past the dreaming part, much
less the first chapter.
But there are potential re-
wards other than riches and
fame for those who try. Ac-
cording to psychologists and
researchers, writing a mem-
oir—even just for personal
consumption—can help the au-
thor review and make sense of
his or her life, come to terms
with traumatic events and fos-
ter personal growth.
In fact, some of the thera-
peutic benefits may be lost if
the writer thinks about too
large an audience—or even a
readership greater than one.
The story can become less au-
thentic. And there are other
potential pitfalls to writing
your life story. Writers can be
thrown into despair if they
have trouble reconciling past
failures or placing traumatic
events into a larger context.
“It really depends on the
type of stories people tell to
make sense of their lives,” says
Dan McAdams, a psychology
professor at Northwestern Uni-
versity. People who can con-
struct cohesive life narra-
tives—where there are
common threads and one event
leads to the next—are likely to
benefit from writing a memoir,
he says, while those who view
their lives as a series of ran-
dom, unrelated events are not.
His research has found that life
narratives are especially bene-
ficial if they focus on redemp-
tion and overcoming adversity.
Positive light
In a memoir by Pencie
Huneke, two key themes are
resilience and gratitude. Now
84 years old and living on a
her story, Ms. Huneke now
says, ultimately puts the expe-
rience in a positive light: She
made close friends, enrolled in
a financial-management course
and met the “love of her life.”
She also forgave her ex.
“He and I have actually be-
come friends. How lucky for all
of us,” she wrote.
The act of writing about
traumatic or difficult events
can reduce stress, lessen de-
pression and improve cogni-
tive functioning, according to
researchers. Several studies
have even shown such writing
to improve the function of the
immune system.
Psychologists believe that
by converting emotions and
images into words, the author
starts to organize and struc-
ture memories, particularly
memories that may be difficult
to comprehend and accept.
“You can’t simply dump an
entire experience on a piece of
paper,” says Joshua Smyth,
distinguished professor of
biobehavioral health and med-
icine at Pennsylvania State
University. Through writing,
he says, the memory of the ex-
perience can be broken down
into small parts, allowing the
event to be more easily pro-
cessed and then laid to rest.
A hidden death
Susan Mayall, now 84 and
living in Livermore, Calif., says
she tried for years to write
about her childhood in Britain
during World War II, years
that included frequent German
bombing raids on her neigh-
borhood. Much of her struggle,
she says, involved coming to
terms with her mother’s be-
havior. Early in the war, in
Pencie Huneke refers to her memoir as ‘an exercise of self-affirmation.’
1941, Ms. Mayall’s father, an
interpreter in the Royal Navy,
died at sea, but her mother
never spoke of his death to the
children or otherwise acknowl-
edged it until the war ended.
Ms. Mayall shared early
drafts of her memoir with her
brothers, who objected to her
harsh evaluation of her
mother. “I struggled all my life
to understand my mother’s re-
actions,” Ms. Mayall says.
What finally put things in
perspective, she says, was
writing about the moment her
mother read the letter from
the Royal Navy about her hus-
band’s death.
Ms. Mayall in her memoir
describes seeing the letter,
without explicitly knowing at
the time what it said, and wit-
nessing her mother’s reaction:
“She tears [the letter] open,
and starts to read. Then she
leans forwards and her hands
go up over her face. She’s
shaking—I can feel her.”
Ms. Mayall says she devel-
oped more empathy for her
mother as she continued to
work on the memoir over the
years. In the final version, she
acknowledges her mother’s
bravery and describes in detail
what it was like to raise four
children on a meager income
in wartime conditions.
When writing about past
traumas, the people who gain
the most from the experience
are those who tend to ac-
knowledge their own problems
but can also see other people’s
points of view. Over the course
of writing, their general per-
spectives evolve, says James
W. Pennebaker, a psychology
professor at the University of
Texas at Austin. Making new
connections between events in
the writer’s life is key, he says.
There are risks. Writing to
uncover a deeper meaning in
one’s life often requires brutal
honesty or authenticity, a sort
of self-disclosure that could ei-
ther be hurtful to other people
or cast the author in a nega-
tive light. If a writer starts re-
peating the same topic inces-
santly or becomes increasingly
angry and bitter, it is best to
stop, Dr. Pennebaker says.
Some such feelings can’t be
helped. “Writing about upset-
ting experiences can provoke
negative emotions,” says Dr.
Pennebaker. “It’s much like go-
ing to a sad movie. Most peo-
ple report getting back to nor-
mal in an hour or so. If a
person is living with a nega-
the final product. Also, it may
be disappointing if very few
people take the time to read
the memoir.
Still, sharing a memoir in
limited circles can be thera-
peutic, especially if there is a
receptive audience. Sharing
can strengthen social ties and
help friends and family mem-
bers understand who the
writer is and how he or she
came to be that way.
The process can also help
tive experience, they are prob- validate the writer’s experi-
ably feeling bad much of the ences and even break ageist
time. The writing helps to get stereotypes, says Susan Bluck,
them out of that cycle.” a psychology professor at the
Writing a memoir can also University of Florida. A child
help authors re-evaluate how or grandchildren may be sur-
they want to live, says Susan prised to learn their grandpar-
Krauss Whitbourne, professor ent hitchhiked across the
emerita of psychological and country, Dr. Bluck says, adding,
brain sciences at the Univer- “It feels good when someone
sity of Massachusetts Am- is excited about your story.”
herst. The exercise will some- Ms. Huneke, in the intro-
times reveal to the writer duction to her memoir, dis-
patterns of behavior that cusses why she chose to leave
were—or are—harmful. a written legacy for her imme-
diate family. Her memoir, be-
Past battles yond a few excerpts, hasn’t
When Paul Wortman, pro- been shared with anyone else:
fessor emeritus of psychology “Perhaps this is an exercise
at Stony Brook University in of self-affirmation, that one’s
New York, started analyzing existence has been worthwhile
and writing about his life and and possibly even memorable,”
career, he says he discovered she wrote. “Or does it have a
that he had a problem with au- higher purpose, to fill in gaps
thority figures. His short tem- for future generations who, one
per and past battles with de- hopes, might care and even en-
partment chairs, he says, were joy it? Then again, maybe it is
the product of his relationship only a desire to explain to one’s
with his father. Dr. Wortman children just why one is the
swore to change his ways. way one is. It might even be in-
He ended up revising his teresting for them to identify
memoir at his wife’s request, characteristics in themselves
after she read it and became they may have inherited!”
uncomfortable with his idea of
sharing it with an extended Ms. Ward is a writer in
group of friends. Through Mendham, N.J. She can be
careful editing, Dr. Wortman reached at reports@wsj.com.

At Wells Fargo Wealth & Investment Management,

Preparing your family to nurture a legacy our expertise is identifying insights that better
is as important as preparing to pass it on. enable our clients to look at their situations
differently, to help preserve and grow their
family’s wealth. It’s led us to become one of the
We call a realization like this an Unlock. largest investment and wealth management
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For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
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R6 | Monday, November 13, 2017 THE WALL STREET JOURNAL.

JOURNAL REPORT | ENCORE

The Hidden Disease That Affects the Middle-Aged

Ailments of the liver are on the rise, but many people aren’t even aware they’re at risk
BY LAURA LANDRO
LIVER DISEASE IS on the rise
among middle-aged Ameri-
cans, but many don’t know
they have it—or that they
could develop it.
The liver performs critical
jobs, including cleaning toxins
from the blood, storing energy
and nutrients, digesting fats
and processing medications,
alcohol and food. But a host of
ills and abuses can wreak
havoc on the liver, from heavy
drinking and infection with
hepatitis B or C to a scourge
known as fatty-liver disease
cure hepatitis C, and a number adults. The disease can lead to
of treatments are in develop- a progressive form known as
ment for advanced fatty-liver nonalcoholic steatohepatitis,
disease. Getting and staying or NASH, which can cause
sober can reverse liver dam- scarring that leads to cirrhosis
age caused by alcohol, and los- and increases the risk of heart
ing weight can reverse damage disease, Dr. Tapper says. Ge-
caused by nonalcoholic liver netic variations may make
disease. some people more vulnerable.
“The liver is very forgiving While liver biopsies are still
and can bounce back even in used to definitively diagnose
early stages of cirrhosis,” says liver diseases and determine
Dr. Lok. Once cirrhosis is ad- their stage, noninvasive tests
vanced, however, the only op- using different types of scans
tion is a liver transplant, and imaging technology such
which can be hard to come by. as MRI are becoming more
There are new treatments for widely used. A 2015 study of
liver cancer if diagnosed early, 100 patients, using such tech-
so screening cirrhosis patients nology, showed that almost

linked to diabetes and obesity.
Over time, the liver can be-
come fibrous and scarred,
eventually developing cirrho-
sis, the replacement of normal
tissue with hard tissue. The
damage that occurs increases
the risk for liver cancer.
A September report by the
Centers for Disease Control
and Prevention found that
death rates for chronic liver
disease and cirrhosis rose 31%
among those age 45 to 64 be-
tween 2000 and 2015. And
cases of liver cancer rose more
than 20% in the U.S. between
1990 and 2015.
Yet liver diseases often
have no symptoms until they
are far advanced, making it all
the more important to identify
and test those at risk.
“With baby boomers, we
may focus on heart disease,
dementia and cancer, and
don’t always think about the
liver,” says Anna S. Lok, direc-
tor of hepatology at the Uni-
versity of Michigan and presi-
dent of the American
Association for the Study of
Liver Diseases.
There are new drugs that
for liver cancer is important,
she says.
Testing barriers
According to a study pub-
lished last month in JAMA On-
cology, the rise in liver cancer
in the U.S. is partially due to
hepatitis C infection in baby
boomers. An estimated 1 in 30
have been infected with the vi-
rus, the second-leading cause
of cirrhosis. Hepatitis C was
often transmitted during med-
ical treatment before infec-
tion-control procedures were
widely adopted, or from blood
transfusions before 1992,
when screening for the virus
virtually eliminated such risks.
It also is spread among intra-
venous-drug users, even with
just one use, and from unster-
ile tools at tattoo parlors.
In 2012, the Centers for
Disease Control and Preven-
tion recommended a one-time
hepatitis C test for all adults
born between 1945 and 1965.
But fewer than 30% have actu-
ally been tested, according to
estimates. Doctors may fail to
ask patients about past medi-
cal procedures or drug-use
history, and patients may ei-
ther be unaware of possible
medical exposures or be hesi-
tant to mention risky behavior
such as intravenous-drug use.
To eliminate such barriers,
Dr. Lok and colleagues have
designed an electronic-health-
record alert that prompts pri-
mary-care physicians to per-
form such screenings if
patients who are baby boom-
ers haven’t yet been diagnosed
or tested. In a study published
in the journal Hepatology in
September, the team said hep-
atitis C testing rates increased
fivefold, to 72% among those
born between 1945 and 1965,
in the year after the electronic
alerts were launched. Of 53
newly diagnosed patients, 11
had advanced fibrosis or cir-
rhosis, 20 started treatment
and so far nine have been
Prevention, PLOS One, U.S. National Health
cured.
The first sign of liver dis-
ease may be elevated liver en-
Liver Check
One in 30
Baby boomers has been
infected with hepatitis C,
and most don’t know it.
20%
of liver cancer in the U.S.
is caused by hepatitis C.
Having hepatitis B
also raises the
risk for liver cancer.
About 100 million
individuals are estimated
to have nonalcoholic
fatty liver disease, which
can lead to inflammation,
scarring and cirrhosis.
Sources: Centers for Disease Control and
and Nutrition Examination Survey, Robert
Wood Johnson Foundation
THE WALL STREET JOURNAL.
STAURT BRADFORD
zymes in a blood test. Elliot
Tapper, an assistant professor
at University of Michigan who
treats patients at its clinics
and at the Ann Arbor VA hos-
pital, says issues related to al-
cohol, obesity and diabetes are
the most likely cause, followed
by hepatitis B or C. Tests for
such conditions should be
used first, including an ultra-
sound of the liver to look for
fatty-liver disease. If patients
disclose they drink excessively
or use intravenous drugs, or
are taking a drug or dietary
supplement that can cause
liver damage, the need for
more invasive tests falls
sharply, Dr. Tapper says.
Fatty livers
Fatty-liver disease, a vises.
buildup of fat in the liver, af-
fects as many as 100 million
Americans, especially those in
their 40s and 50s, but also
strikes children and young
two-thirds with Type 2 diabe-
tes have evidence of nonalco-
holic fatty-liver disease, while
more than 7% have advanced
fibrosis. Study author Rohit
Loomba, director of hepatol-
ogy and a research center de-
voted to nonalcoholic fatty-
liver disease at the University
of California, San Diego, says
follow-up studies aim to deter-
mine whether such technology
is cost-effective for wide use.
Until such screening meth-
ods are better established, he
says, doctors should assess
their patients with classic risk
factors for fatty-liver dis-
ease—those in their 40s and
50s at high risk of heart dis-
ease because of obesity and
diabetes.
“If you are overweight or
obese and have Type 2 diabe-
tes and are 50 or older, you
need to ask your primary-care
doctor if you might have fatty-
liver disease,” Dr. Loomba ad-
Ms. Landro is a former Wall
Street Journal assistant
managing editor. Email her
at reports@wsj.com.

Ankle Replacements Take Off, SECOND ACTS

A TIME TO HELP PEOPLE,

As Devices Appear to Be Durable NOT ORGANIZATIONS
A new study offers encouragement, but questions remain
Randy Simon
BY LAURA JOHANNES Age: 61
Hometown: Montclair, N.J.
ANKLE REPLACEMENTS, a new kid Primary career: Executive coach,
on the block compared with knee and organization development expert
hip replacements, used to be deemed Current path: Clinical psycholo-
MICHAEL GREENBERGER

a risky bet for patients under 65. gist

But as doctors steadily gain confi- Why this path: “It was hard for
dence that the replacements will me to make organizational needs
last, Carrie Kvitko, 60, from Colum- be the primary driver and not
bus, Ohio, is one of a growing group meet the individual’s needs.”
of younger patients to sport a new
ankle, made of metal and plastic and
bending nearly as well as the origi-
nal. In September, a year after her BY JULIE HALPERT
surgery, Mrs. Kvitko went on vaca-
tion to Magic Kingdom Park in Or- Fifteen years ago, Randy Simon had a realization that caused her to
lando and climbed 116 steps to the give up one successful career and start another.
top of the Swiss Family Tree House. Dr. Simon, formerly an executive coach and organization-development
“I’m young,” she says. “I want to expert, had just helped a nerve-wracked executive overcome some per-
be able to do things. I don’t want to formance issues, and thus keep her job. But afterward, something kept
give that up.” nagging Dr. Simon, until it finally hit her. As an executive coach, she
says, she was helping the woman stay in a job that made her unhappy.
STAR

Fast Growth
Nearly 10,000 total-ankle-replace-
ments will take place this year in the
U.S., about double the level in 2011,
according to estimates from Smart-
TRAK, an online market-data system
from BioMedGPS LLC of Irvine, Calif.
That growth is due in part to
mounting evidence over the past
several years that a particular device
is long-lasting. Most recently, at a
scientific meeting in September in
Lisbon, Duke University researcher
James A. Nunley presented data on
Stryker Corp.’s Star ankle. The find-
ing: For a group of patients who
took part in a trial before the device
hit the U.S. market in 2009, 88% of
58 devices were still in place 10 to 19
years after implantation.
There are limits to how much an-
kle replacements can replicate
healthy ankles. They aren’t meant to
take running or jumping, says Lew
Schon, an associate professor at
Johns Hopkins School of Medicine
and co-designer of a replacement an-
kle from Zimmer Biomet Inc., in
Warsaw, Ind. You can run and jump,
but the unit will wear out faster. It is
possible to ski, though, Dr. Schon
says, since skiing has less impact on
an ankle than, say, jumping.
Recipients also could need follow-
up surgery. A study presented last
year at the American Orthopedic
Foot & Ankle Society meeting in To-
ronto found that 25% of 761 patients
needed some type of repeat surgery
during a 15-year period, such as re-
placing the plastic parts of the de-
vice, which tend to wear out faster
than the metal components.
“Getting a total ankle [replace-
ment] is like getting keys to a car,”
says Gregory Lundeen, a Reno, Nev.,
orthopedic surgeon who trains sur-
Data showing the durability of the Star ankle replacement, above, from
Stryker Corp., has helped spur more ankle-replacement surgeries.
geons in implanting the Star. “You
have to have it serviced on a regular
basis.”
While ankle replacements typi-
cally occur later in life, the cause
isn’t usually arthritis from simple
wear and tear, as it is for hip and
knee replacement. Ankle arthritis is
usually the result of past trauma,
such as a broken ankle, says Gregory
C. Berlet, a surgeon in Westerville,
Ohio, and design consultant to Dutch
medical-device company Wright
Medical Group NV, which sells three
replacement ankles in the U.S.
Patients often live with ankle pain
for decades, until the cartilage layer
fully wears down, and medication or
rest no longer offer relief. The stan-
dard treatment has long been fusion,
or screwing the ankle bones to-
gether. That surgery typically lasts a
lifetime, but the loss of motion puts
strain on other joints in the foot—
often making them arthritic, says
Razi Zaidi a researcher at the Insti-
tute of Orthopaedics and Musculo-
skeletal Science at Royal National
Orthopedic Hospital in London.
The cost of total ankle replace-
ments varies widely, from $19,000 to
$30,000 or more. Insurers generally
cover the procedure, minus deduct-
ibles, says Thomas Loring, senior di-
rector of research and development
at Stryker, in Kalamazoo, Mich.
As more newly minted ankles are
implanted, surgeons caution that
popular new products, such as Zim-
mer Biomet’s, and Wright’s Infinity,
both of which hit the U.S. market in
2014, don’t yet have long-term data.
“A younger patient, 50, early 60s,
wants to know how long does it last?
You have to look them straight in
the face and say, ‘We have no idea,’ ”
says Christopher E. Gross, assistant
professor of orthopedics at the Med-
ical University of South Carolina in
Charleston and co-author of the pa-
per on repeat surgeries that was
presented in Toronto.
Dr. Gross has no link to any com-
pany, but says he uses mostly
Wright’s Infinity, because inserting it
requires less bone removal than the
company’s older model, the Inbone.
As a ballpark estimate, he tells pa-
tients that 75% of them will probably
still have their new ankle in 10 years
and be happy with it.
Replacing replacements
When an ankle replacement fails,
it is often because it loosens from
the bone, causing gradually in-
creased pain, surgeons say. The pa-
tient is in for a more difficult opera-
tion with a longer recovery than the
first go-round because bone was re-
moved during the original surgery
and it is often necessary to graft
new bone to replace it.
Options for patients with failed
implants are growing. In July,
Wright came out with Invision, a de-
vice intended for revision surgeries.
Zimmer Biomet offers revision de-
vices custom-made to patient speci-
fications, says Brad Quick, general
manager of the company’s foot-and-
ankle unit. Stryker is working on a
revision product, Mr. Loring says.
Miss Johannes is a writer in
Boston. Email: reports@wsj.com.
If, instead, she had been the woman’s therapist, she would have urged
her to find a different job.
That, Dr. Simon says, is what finally caused her to decide, after years
of toying with the idea, to become a clinical psychologist. She realized
that her heart lay in helping individuals, not organizations.
Dr. Simon, 61 years old, now sees patients in Montclair and Summit,
N.J. She doesn’t regret her first career. She was always “fascinated by
figuring out human behavior and how to make changes.”
The problem-solving skills she developed along the way, and her ex-
pertise in group dynamics, have proved essential in leading therapy
groups, she says.
She earned her M.B.A. in 1979, a time when few women took such a
path. During the 20-some years that followed, she had several executive
positions in human resources at Fortune 500 companies, including Via-
com. She left Viacom after it merged with CBS in 2000. She then
started her own consulting business as an organization development
specialist and executive coach.
It was during this period she had her epiphany about wanting to help
people more than organizations. A career in psychology was something
she had thought about since graduating from college with a double ma-
jor in psychology and art therapy.
So, flush with savings and master of her own schedule, she first com-
pleted a post-master’s certificate program in art therapy. Then, in 2006,
she enrolled in a full-time Ph.D. program, and in 2011 received her doc-
torate in clinical psychology.
“After years of organizational work, I wanted to find ways to improve
quality of life for individuals,” Dr. Simon says.
Many of her patients now are teens suffering from depression. This
work, she says, is one of the most gratifying parts of her new career.
“The teenage years are tumultuous, but they are also a time of figur-
ing out personal values and what is important,” she says.
“It’s disheartening to see what it’s like for someone in high school to-
day,” Dr. Simon adds. Success for teens is often defined as the caliber of
the college that accepts them, she says, and this has created an epi-
demic of anxiety and depression among both teens and their parents.
When Dr. Simon started her clinical training, “it was uncomfortable at
times to be in this trainee position,” she says.
But ultimately, she says, her life experience, especially being a par-
ent—her children are now 21 and 24—has made her a better therapist,
while working with adolescents has helped to make her a better parent.
Though she found corporate work rewarding, Dr. Simon says, “I didn’t
love what I do. What I’m doing now, I really love.”
Second Acts looks at the varied paths people are taking in their 50s and
beyond. The profiles are by Julie Halpert, a writer in Michigan. You can
reach her, and let us know how you’re staring over, at reports@wsj.com.
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R8 | Monday, November 13, 2017 THE WALL STREET JOURNAL.

JOURNAL REPORT | ENCORE

Dementia’s Tragic Toll on Families

The disease often pits siblings against each other. But it doesn’t have to.
mentia, and regular monitoring by
BY MARC AGRONIN
both medical and behavioral special-
ists. This information enables every-
WHEN A FAMILY member suffers one to have the same understanding
from dementia, we tend to view it as of the big picture. It puts everybody
an individual tragedy. But too often on the same page as far as knowing
this wrecking ball of a disease takes what exactly is going on.
a toll on the entire family. Second, the caregiving family
Even under the best circum- needs to meet early on and establish
stances—with state-of-the-art care, basic goals and ground rules. What
well-intentioned caregivers, and suf- sort of care do they envision over
ficient social and financial re- time, and what can they afford? How
sources—the trajectory of most will they divide responsibilities now,
forms of dementia is difficult to con- and what are contingency plans if
trol. It’s often a chronic disease with someone can’t sustain their role?
symptoms that will only get worse. Too often, families plunge into care-
Discontinuities in care are common giving with differing perspectives on
in a health-care system that is exces- their parent’s diagnosis, and they
sively siloed and lacks sufficient ge- never coordinate a common plan for
riatric specialists. the type of care and the logical roles
In the face of these challenges, that each could play.
the families of individuals with de- A third and crucial step is to as-
mentia struggle to maintain emo- sign a point person for coordinating
tional equilibrium along the way. daily care and decision making.
That’s especially true when the Sometimes, a third party such as an
spouse of the afflicted has already aging-life-care professional needs to
died, leaving decisions about care in be included when family members

the hands of the children. That’s
when this disease of one damages
the well-being of many, sometimes
turning close and loving siblings into
estranged and shattered combatants.
The tragedy here is that it doesn’t
have to be this way. If families un-
derstand the perils, they can navi-
gate them without imploding.
Economic and emotional toll
Those perils, of course, are many.
Families of persons with dementia
spend billions of dollars—thousands
a month per household—on health
care, supplies and paid caregivers.
The average unpaid caregiver, the
Alzheimer’s Association says, works
almost 22 hours a week on the per-
son’s behalf. And, in terms of total
cost, none of this takes into account
lost wages, lessened productivity
and decreased spending on other
household needs and luxuries.
Yet the economic toll often pales
next to the emotional one.
I have seen people, for instance,
who were simply not in a position to
take care of a parent with dementia.
Maybe they had a young family, or
were just starting a career. They
simply lacked the time and emo-
tional energy to care for an aging
parent. So, perhaps after trying for a
while, they send the parent to an-
other sibling. They are relieved of
the burden, but they are racked with
guilt.
Other children often relish the op-
portunity to organize a parent’s care,
finding meaning in filial duties. But
they can also find themselves in-
creasingly frustrated and resentful
when siblings critique their caregiv-
ing approach.
Meanwhile, some children become
enraged and depressed as they
watch their parents go through
changes that they struggle to believe
are true. They might even reject the
dementia diagnosis and medical in-
terventions.
Until a parent’s illness, siblings
with different personalities rarely, if
ever, have to work on a common
project. The family dynamics often
are stabilized by a history of respect
and even admiration for one an-
other—from afar. In addition, each
child has his or her own private con-
nection with a parent.
These dynamics—among siblings
and between siblings and parent—
are at risk of breaking down in the
face of dementia. There is no leader-
ship or intermediary to gratify indi-
vidual needs or resolve conflicts. It
is each man or woman for himself or
herself.
This emotional quagmire isn’t al-
ways helped by the full congress of
specialists, advisers, care managers
and in-the-trench aides needed to
care for an aging person with de-
mentia today. As we live longer and
healthier lives than previous genera-
tions, we also accumulate a larger
and more complex array of physical
and mental ailments that need atten-
tion. We can preserve the body for
MARGARET RIEGEL
much longer than we can preserve
Spillover Effects the mind.
The effects that unpaid caregiving can Gone are the family doctors who
have on the caregiver's other job* are know the whole family across gener-
greater when the person under care has ations and manage all health care.
Alzheimer's or other dementias, They’ve been replaced by competing
compared with cases in which the systems of care with multiple clini-
person under care has other issues cians who each manage their own
piece of the person.
For people with Alzheimer's and Gone, too, for the most part are
other dementias multigenerational households with
For other people strictly defined roles and a sur-
rounding family or community in-
Went in late, left early or took time off vested in care.
57% There is simply no way to remedy
these missing pieces for caregiving
47% families who are, more often than
not, spread across the country.
Went from full to part time or
cut back hours Navigating the journey
18% So, all that is the bad news. And
it’s bad, indeed: This is a terrible
13% disease that can wreak havoc on all
those who must deal with it.
Took a leave of absence Fortunately, it doesn’t have to be
16% as bad as it often is. There are sev-
eral important strategies that, when
14% implemented early and consistently,
can vastly improve the well-being of
Gave up working entirely caregivers individually and as a fam-
9% ily unit.
First, the most basic need for
5% families is to know what they are
dealing with in terms of the diagno-
*Changes at their other work at any time since they
began caregiving sis and any associated conditions.
Source: Euromonitor This requires a comprehensive base-
THE WALL STREET JOURNAL. line assessment by an expert in de-
do not live near the afflicted person,
or when differing perspectives
would benefit from both an indepen-
dent guide and a mediator for dis-
putes. In extreme cases, this person
can be court-appointed.
Throughout this entire process,
the children must try their best to
share the burden of care and commit
themselves to subjugating personal
needs and agendas to the overall
care needs of the affected person.
This goal is easier said than done
when there are longstanding ethical,
financial or other disagreements
that become amplified by the loss of
parental authority.
Such strategies are critical, since
caregiving is a long journey—eight
to 10 years on average—and requires
constant learning, renewal and rein-
vention to survive. Alzheimer’s dis-
ease and every other form of demen-
tia bring heartbreaking situations,
but also the opportunity to bring
families together in a common pur-
pose, and to fulfill an endless debt to
a parent that most children want to
accomplish.
The key is for families to under-
stand that core emotional need and
to realize that a win-win approach is
possible, resulting in relationships
that are closer, healthier and more
resilient—not in spite of their par-
ent’s illness, but because of it.
Dr. Agronin is a geriatric psychia-
trist at Miami Jewish Health, and
the author of the forthcoming book
“The End of Old Age: Living a Lon-
ger, More Purposeful Life.” He can
be reached at reports@wsj.com.

From the Frozen, Costly North to the Warmth of Brazil

The author always wanted to
live in a place that wasn’t cold.
He and his wife have done that.
BY KEVIN CORKUM
EVEN AS A teenager in Can-
ada in the 1970s, my objective
was to retire early in a warm
country. Canada is just too
cold and too expensive.
After decades of working
mostly as a merchant ship’s
engineer on the brutally cold
North Atlantic Ocean, I
achieved my goal last year. Re-
tirement in Brazil began for
me at the age of 56.
cue. We’ve made many friends
through the local church.
Sometimes I miss my family
in Canada—my father is too
old to travel this far and my
sisters haven’t visited here
yet. But we talk regularly, and
100 miles
Brasilia we got used to being sepa-
100 km rated physically during my 37
years as a sailor. My wife has
BRAZIL family here, so she is more
closely connected, and her
family has embraced me.
Being active, eating well,
NANUQUE
living a stress-free life is the
goal. There is a free medical
Sao Paulo Atlantic clinic in town or, for those who
Rio de Janeiro Ocean can afford it, cash-pay access
to most medical facilities. The
free service is slow, the cash-
Affordable homes pay is very fast and reasonably
KEVIN CORKUM

My initial reaction to life in Becoming a Brasileiro by priced. An annual blood test

Brazil, long before I moved
here for good, was mixed. Al-
though I had a leg up on oth-
ers, because my wife is a Bra-
zilian national, I experienced
real culture shock. While ev-
erything in Canada appears to
be in order, Brazil is very
much the opposite; it’s a little
chaotic at times.
For example, in the small
city where we live, the streets
are crammed with all sorts of
vehicles, everyone making
their own rules regarding nav-
igation and road signals. We’re
in cowboy country, with big
cattle ranches in the area. Lots
of farmers, too. So it’s com-
mon to see a few cowboys on
horseback around town, or a
donkey-powered wagon full of
watermelon driven by a few
farm children.
It took a while to assimi-
late. But soon the good far
outweighed the bad. I became
hooked on Brazil.
We rented an apartment for
a few years, while traveling
back and forth to Canada. But
in 2014, we purchased our
modest home in Nanuque, a
city of some 40,000 people
about 400 miles north of Rio
de Janeiro. Now we are here
permanently.
marriage was easy. But there
are other ways to become a
permanent legal resident. Buy-
ing a home is just one possi-
bility. Homes in Nanuque are
reasonably priced, very afford-
able for the average North
American ready to retire.
Our home, near the center
of town in a pleasant, safe
neighborhood, cost about
$100,000. We have three bed-
rooms and two full bathrooms,
a room to receive guests at the
front door, a living room, din-
ing room and a large kitchen.
Our property is about 50 feet
by 130 feet, a large lot by local
standards. Property taxes also
are a fraction of what we paid
in Canada—about $80 a year
here, compared with 20 times
as much in Canada.
Lots of forms and certified
copies were required for immi-
gration. But with the help of
the Brazilian Embassy in Can-
ada, I got my Registro Nacio-
nal de Estrangeiros, or RNE,
the equivalent of a permanent
resident visa. Most of the pro-
cess was simple. Traveling to
the government offices was
the biggest challenge; driving
is dangerous here.
Where we live, the climate is
exceptionally comfortable, with
Nanuque features a large stone hill that locals refer to as “Pedra do Bueno,” or “Stone of Good.”
temperatures averaging about
86 degrees during the day and
68 degrees at night. Only dur-
ing the rainy seasons do we
consider wearing jackets and
warmer clothes. For the most
part, it’s shorts and T-shirts.
And if gets too hot, we head to
the beaches of Bahia, less than
two hours away by car.
Cheap eats
Nanuque is in the highlands
of the Brazilian state of Minas
Gerais, divided by a river and
surrounded by a mix of forest,
rolling hills and plains dotted
with sugar-cane farms and
cattle ranches.
The city has the hustle and
bustle of business at its cen-
ter. Very small shops make up
the bulk of commerce. My
cooking hobby brings me to
the grocery stores daily, my
carpentry hobby to the hard-
ware stores. The variety of ev-
erything is limited, by North
American standards, but we
find most everything we need.
(Among the exceptions: the
turnips I always used to in-
clude in my classic Canadian
beef stew and the sour cream
I love on baked potatoes.)
Balancing a budget is much
easier in Brazil than in Can-
ada. We live very well here on
about $1,550 a month. Our
electricity costs average less
than $60 a month. We spend
just over $300 a month on
groceries, less than half of
what we spent in Canada. We
buy eggs from a local delivery
truck, 30 for about $3. Since
this is beef country, we have
access to fresh beef every day.
We tend to buy fillet mignon
cuts, for about a quarter of
what they cost us in Canada.
We often have barbecues with
neighbors on Friday nights.
The local grocery stores are
full of fresh vegetables and
fruits year round. Most home-
owners have some sort of fruit
trees and gardens. Plant
growth here is amazing—fast
and consistent. Between Au-
gust and March, we get a
bucket full of tasty fresh man-
goes from our tree in the
backyard every day.
costs about $30. Analysis of
the results by a doctor costs
the same amount. Surgery to
remove some moles from my
chest cost about $275. My wife
Out and about has a medical plan that covers
The climate offers constant the majority of her needs. For
opportunities for outdoor ac- $100 a month she has limitless
tivity. My morning begins with access to immediate, good
yoga on the backyard deck, health care. I haven’t had the
under the mango tree. By 7:30 need for a plan.
the sunshine reaches the deck, We get around town by
warming and refreshing. On bus—they are slow but reli-
days with nothing else to do, able—or in our car. But high-
we might go to the local coun- way travel by car in Brazil is
try club, where we use the very dangerous; the roads are
sauna and pool; the club costs narrow, with many commercial
about $30 a month. Or we trucks. So we tend to avoid
might pay a visit to the public traveling by car for fun, and
exercise track. just limit our road trips to
We enjoy gardening in our what is required.
backyard. I’m expecting a nice Every day I wake up here I
crop of spicy peppers in a few feel successful. I made it to
weeks. We are avid members paradise, just like I wanted to
of the radio-controlled model- as a teenager. After all those
airplane club, and enjoy flying years of hard work on a freez-
from a hilltop overlooking the ing cold ocean, I’m happy in
city where the view is breath- my simple—and warm—life.
taking. We also enjoy brisk
evening walks through the city. Mr. Corkum is a writer in
It has been easy to make Nanuque, Brazil. He can be
friends. Having a routine for reached at reports@wsj.com.
social activities has helped. If you have retired abroad
The flying club meets on Sun- and are interested in writing
day. I go to the sauna Friday a column about your
night with a regular group, experience, write to us at
usually followed by a barbe- reports@wsj.com as well.
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
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THE WALL STREET JOURNAL. Monday, November 13, 2017 | R9

JOURNAL REPORT | ENCORE

The Best Books of 2017 About Healthy Aging

Great reads for keeping the mind, body and spirit engaged.
And maybe making a little money as well.
go and how to get there. Browse
BY DIANE COLE
with Post-it Notes at hand.

THE BEST PRESCRIPTION for Ageless Soul: The Lifelong Jour-

healthy aging: Keep on moving. That ney Toward Meaning and Joy
message runs through this year’s By Thomas Moore; St. Martin’s Press
best books for the years ahead, with For psychotherapist and best-sell-
recommended pathways that ac- ing author Thomas Moore, aging
tively engage mind, body, spirit or isn’t just a biological process but a
any combination thereof. spiritual passage. To him, aging pos-
itively means allowing yourself to be
AgeProof: Living Longer With- affected by even the most melan-
out Running Out of Money or choly losses. “You have to have re-
Breaking a Hip flected on life, including its down-
By Jean Chatzky, Michael F. Roizen, side, before you can start crafting a
M.D., and Ted Spiker; Grand Central life that is subtle and wise,” he
Publishing writes. He includes lessons learned
In a style both chatty and accessi- from his patients over a 40-year ca-
ble, financial journalist Jean reer, and cites a wide range of writ-
Chatzky, physician-author Michael F. ers and philosophers as he leads
Roizen and co-author Ted Spiker ex- readers through what he sees as five
plore strategies to maintain your phases of aging: “feeling immortal;
health and boost your wealth. Re- first taste of aging; settling into ma-
gardless of your age, the authors turity; shifting toward old age; and
emphasize the importance of regular letting things take their course.”
medical and financial checkups to Though his tone will strike some as

assess where you are and what you
may need to change. They suggest
metrics for your wallet and physical
fitness; and rather than fear those
numbers, the authors say, welcome a
signal that it’s time to switch to a
healthier lifestyle or make financial
course corrections. They advise
building personal and professional
teams to help in good times and bad,
and counsel how to make sure your
home is both a secure investment
and a safe environment. It is never
too late to recover from setbacks,
say the authors, who offer specific
help for troubles ranging from post-
divorce finances to addictions.
Just Move! A New Approach to
Fitness After 50
By James P. Owen; National
Geographic
By the time he turned 70, former
Wall Street executive and admitted
couch potato James P. Owen was suf-
fering from severe lower back pain,
two bum knees, a faulty rotator cuff
and a shuffling walk that made him
look like a “poster child for looming
old age.” Rather than feel defeated,
though, he set about getting fit. In
this direct, practical and inspiring
book, he shares his lessons. “Getting
fit is nowhere near as hard as deal-
ing with the infirmities of old age,”
he writes. He urges readers to set re-
alistic goals that focus on functional
fitness: the mobility, strength, bal-
ance and flexibility to comfortably
go about your daily life. He provides
tips for starting a fitness routine
that suits your needs and abilities,
checklists for finding personal train-
ers, and clear instructions and illus-
trations for exercises that he sug-
gests become core parts of your
fitness program.
Four Seasons in a Day: Travel,
Transitions and Letting Go of
the Place We Call Home
By Deborah L. Jacobs; DJWorking
Unlimited Inc.
Whether enticed by the lure of
adventure, or the possibility and
sometimes the necessity of lower-
cost living, many couples on the
cusp of retirement dream of living
abroad. All of these motivations led
financial journalist and lawyer Debo-
rah L. Jacobs and her husband to
rent out their Brooklyn townhouse
to strangers for three months while
they decamped to France to live in
temporary digs leased from other
strangers. Deftly combining travel-
ogue with how-to practicalities, Ms.
Jacobs chronicles each stage of their
journey, starting with repairing and
decluttering their own home to make
it attractive to tenants. She walks
readers through the nitty-gritty of
websites for short-term stays, tips
on vetting renters of your home, and
how to evaluate advertisements for
places you might wish to rent. She
candidly describes how she learned
the hard way, after booking a rental
that looked ideal in the ad but
turned out to be an alarmingly
musty dud. Ms. Jacobs and her
spouse found a quirky yet pleasing
alternative, also through the inter-
net. For Ms. Jacobs, the pleasures of
food markets, out-of-the-way vil-
lages, enduring friendships and ab-
sorbing French customs outweighed
all of the frustrations—even discov-
ering the crayoned walls, furniture
tears, and chips and cracks her ten-
ants left behind in Brooklyn. This
book is invaluable preparation for
anyone thinking about long-term
travel options.
SERGE BLOCH
National Parks of Europe
Lonely Planet
This sumptuously illustrated vol-
ume profiles 60 parks ranging from
the bucolic to the rugged, including
England’s Lake District, coastal It-
aly’s Cinque Terre, the French Pyre-
nees, Sicily’s Mount Etna and the
Swiss Alps. Other destinations are
lesser known but no less inviting:
The Italian Dolomites sport monu-
mental peaks, charming lakeside vil-
lages, rare flowers and trails that
range from easy strolls to strenuous
climbs. In Brecon Beacons National
Park in Wales, the moors and hills
are dotted with ancient stone circles,
castle ruins and historic forts; there
are caves ready to be explored, and
trails for mountain-biking and hik-
ing. Iceland’s Snaefellsjokull teems
with fiords, sea cliffs, volcanic peaks,
lava fields, glaciers and waterfalls;
outdoor activities from bird- and
seal-watching to horseback riding
and hot-spring bathing are available,
too. Each park profile suggests
where to stay, plots itineraries with
must-do activities and must-see
places, and gives advice on when to
touchy-feely, Mr. Moore’s message is
resonant.
Witness Tree: Seasons of Change
with a Century-Old Oak
By Lynda V. Mapes; Bloomsbury
Forest trees reveal much about the
passage of time, writes Seattle Times
environmental reporter Lynda V.
Mapes. The trick is to decode the sto-
ries in their roots, buds, leaves and
ring cores, the tales told by the birds,
bugs, mice and mushrooms who
make their homes in the surrounding
area. The red oak at the center of the
book, part of the Harvard Forest of
Massachusetts, is “a living timeline
of cultural and economic change,”
Ms. Mapes writes. It has survived
storms, fires, birds nipping at its
buds, insects attacking its bark, and
tree-cutting humans in search of
cordwood. The author makes a
strong case for why the future de-
pends on the health of the tree’s in-
tricate ecological system. She incor-
porates conversations with scientists
and woodland specialists and ably
weaves their research into her larger
chronicle of change and adaptation.
Ms. Cole is a writer in New York
City. She can be reached at
reports@wsj.com.

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For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
R10 | Monday, November 13, 2017 THE WALL STREET JOURNAL.

JOURNAL REPORT | ENCORE

Falling Is Dangerous—and Often Preventable

Falls can be reduced with
balance training, physical
therapy and safer homes
BY BARBARA SADICK
ONE OF THE biggest health
threats facing Americans age
65 and older is also one many
sulted in medical treatment,
costing an estimated $31 bil-
lion in annual Medicare costs,
according to the CDC.
With large numbers of baby
boomers turning 65 each year,

TAI JI QUAN: MOVING FOR BETTER BALANCE

of them don’t like to talk
about: falling.
At least half of senior
Americans who fall don’t tell
anyone, according to a report
from the Centers for Disease
Control and Prevention.
Whether it’s a spouse declin-
ing to tell a partner, or an el-
derly parent hiding it from the
children, many seniors keep
quiet because they are embar-
rassed and fear losing their in-
dependence.
By remaining silent, how-
ever, many of these patients
become more afraid and more
sedentary, medical experts say.
That increases their risk for
additional falls and injuries,
which can lead to fatal compli-
cations such as intracranial
bleeding, flail chest and respi-
ratory failure. Indeed, falls are
the leading cause of injuries
and death from injuries in
older Americans, according to
the CDC.
While falls can occur at any
age, the elderly are most at
risk. The CDC says that in
2014, almost one-third of
adults 65 or older reported
falling at least once in the pre-
ceding year, representing an
estimated 29 million falls and
seven million injuries. Of those
who fell, 37.5% reported at
least one fall that either re-
stricted their activity or re-
falling is likely to become an
even more serious medical is-
sue in years ahead, experts
say.
The good news is that there
are steps the elderly can take
to reduce their risk. Medical
experts increasingly believe
that strength and mobility, not
age, are the biggest factors in
determining whether a person
will fall.
“With balance training and
physical therapy, some mus-
cles and nerves can regenerate
Falling Fast
Statistics on falling for U.S.
adults aged 65 or older, in 2014
29 million
Number of falls
1 tion in the brain and improve
Each second, 1 adult fell;
less than half informed their
doctor
1 in 4
Adults reported a fall
7 million +
Falls required medical treatment
or restricted the person’s activity
for at least a day
Centers for Disease Control and Prevention
THE WALL STREET JOURNAL.
To help prevent falls, many doctors recommend Tai Chi exercises. A class in Lacey, Wash., above, bases its program on Tai Chi.
at any age and compensate for
the atrophy often seen in ag-
ing, thus reducing the risk of
falling,” says Daniel Deems, an
otolaryngologist and chief
medical officer of Fyzical
Therapy & Balance Center, a
physical-therapy franchise in
39 states. Falls can be re-
duced, he says, by working
with trained physical thera-
pists to increase balance func-
core muscle strength for sta-
bility.
Dr. Elizabeth Phelan, a geri-
atrician and associate profes-
sor of medicine at the Univer-
sity of Washington School of
Medicine in Seattle, agrees,
saying, “The single most effec-
tive prevention strategy is the
practice of strength-balance
exercises like Tai Chi and the
development of muscle
strength.”
Dr. Phelan also recommends
that home environments be
assessed and modified as peo-
ple age. Good lighting is es-
sential, she says, while hand-
rails along staircases can
enhance balance and steadi-
ness, and stairs with clearly
marked edges can help im-
prove visibility. In the bath-
room, grab bars by tubs and
showers and around com-
modes are useful. Toilet seats
can be raised and tub-transfer
benches added, she says.
Showers that are flush with
the floor help, as well. (The
CDC has a list of health and
home practices to reduce fall
risk and help seniors continue
to live independently.)
Jon Pynoos, co-director of
the Fall Prevention Center of
Excellence and professor of
gerontology at the University
of Southern California’s Leon-
ard Davis School of Gerontol-
ogy, recommends that older
adults be screened for fall risk
at least once a year, and after
any fall occurs.
Checking a patient’s medi-
cations and dosages is a good
idea, he says, since many
drugs can cause dizziness,
confusion, balance problems
and a drop in blood pressure,
all of which contribute to falls.
Eyeglass prescriptions should
be kept up-to-date, and peri-
odic eye exams (every one to
two years) also should be con-
ducted, he says.
Dr. Phelan believes that
communities and state offi-
cials could do more to make
public spaces safer for the el-
derly. She recommends mak-
ing sidewalks even, adding
lighting, lowering curbs and
adding benches.
In Massachusetts, a com-
mission examines data and
makes recommendations to
the governor and Legislature
on how to reduce falls and the
health-care costs associated
with them. The state’s Depart-
ment of Public Health, mean-
while, works with community
partnerships to make strength
training and balance programs
available to older adults at
risk of falling. (Seniors should
check to see what resources
their state has to offer.)
“Falling is an expensive
problem with huge ramifica-
tions that can affect the qual-
ity of life of an entire family,”
says Carlene Pavlos, director
of the Bureau of Community
Health and Prevention in Mas-
sachusetts.
“With solid strategies,”
however, “falls don’t have to
be inevitable and can be pre-
vented,” she says.
Ms. Sadick is a writer in
New York. Email her at
reports@wsj.com.

THE EXPERTS
SECOND ACTS

AFTER A CAREER OF
Insights on Rates, Charity
The Experts are an online group of industry, academic and cultural thinkers
SITTING, A RETIREMENT who blog about topical issues in their fields of expertise. Edited excerpts
follow. For more, go to WSJ.com/Reports.
THAT’S ALL UPHILL
Higher Rates Pose Threat, financially fragile, defined as say- Get the Most Out of
Barbara Grutter Especially to Elderly ing they cannot (or probably can- Calling Your Doctor
not) come up with $2,000 within a
Age: 64 The Federal Reserve’s decade of month in the event of an unex- For most people, it can take
Hometown: Dearborn, Mich. “quantitative easing” will soon pected emergency. weeks to book an appointment
Primary career: Manager and end. With this change in policy, we One proactive response would with a doctor, and hours to get to
consultant, health-care information should expect not one but several be for people to tighten their and from the doctor’s office.
technology interest-rate increases over the belts, consume less and pay back So getting your doctor on the
Current path: Indoor-sport and next few years. their obligations quickly. While phone can be a solution, but it’s
rock climbing These higher interest rates will this may not be easy, it would be also an undertaking. Your doctor
Why this path: “I was deter- come as an unpleasant shock to less expensive than the alternative. may not return calls today, and
HANK BOOTZ

mined to take steps to get fit and those who hold far more debt than
healthy.” in the past, especially adjustable-
rate debt. One group particularly
vulnerable to Fed policy changes:
Until she was 61, Barbara Grutter’s only exercise was an occasional older Americans.
walk or bike ride. People ages 50 to 80 saw their
Now, at age 64, she lifts weights and does floor exercises, puts in 10 debt rise 60% from 2003 to 2015,
laps on four flights of stairs two to three times a week, and she logs at whereas leverage for younger bor-
least 8,000 steps a day on her Fitbit. rowers dropped over the same time
It’s all part of the conditioning she endures to pursue her new pas- frame, according to the Federal Re-
sion: climbing. serve Bank of New York. Baby
As she tells it, what led her to rock climbing was lethargy. The sit- boomers have racked up mountains
ting-in-front-of-a-computer kind. Near the end of her 30 years in health- of unpaid credit-card bills, student
care IT, she says, she was working 12 to 14 hours a day nearly every day loans for themselves and their chil-
of the week as head of her own consulting company. dren, and payday loans.
“It was a lot of sitting for a lot of hours, high stress and not a lot of Another reason today’s older
sleep,” Ms. Grutter says. A lot unhealthy food, too. Americans are deeper in debt is
She retired to occasional contract work in 2013, “determined to take that they bought far more expen-
steps to get fit and healthy,” she says. This included eating healthier and sive homes, and paid for them
stretching every day. She lost 10 pounds within the first year. with smaller down payments, com-
Then, in 2015, some friends introduced her to indoor sport climbing. pared with the past.
She liked it so much, she found a climbing gym close to her home in Dear- I vividly remember Archie Bun-
born, Mich. On her first visit, Ms. Grutter met Ron Wiggle, an 80-year-old ker’s mortgage-burning party on
man with 40 years of climbing experience. He became her mentor. the television show “All in the
“He got me hooked,” she says. Family,” which conformed to my
Mr. Wiggle quickly persuaded Ms. Grutter to give outdoor climbing a parents’ expectation of paying off
shot. She joined him in Moab, Utah, the following spring for her first at- the house before retirement. Now-
tempt—a beginner’s route of roughly 100 feet up part of a popular for- adays, by contrast, few people re-
mation there known as Wall Street, for its sheer, towering rock faces. tire owning their homes free and
“I’m really pushing my limits,” she says. “I never would have believed I clear, meaning they will carry debt
could have done it.” for years, perhaps even for the
Her second outdoor climb, this past May, also in Utah, was a 400- rest of their lives.
foot ascent up the spine of Looking Glass Rock, a rounded ridge with a Our recent study on three gen-
steep drop-off on each side. Before starting, she says she took one look erations of older participants in
and immediately doubted herself. the Health and Retirement Study
“My stomach clenched. My heart dropped. I thought, ‘All of this prep (a longitudinal project sponsored
and I simply can’t do it,’ ” Ms. Grutter says. But her climbing partner— by the National Institute on Aging
who she would be attached to, and who would catch her if she fell—told and the Social Security Adminis-
her, “You can do this. You’ve done it before. I’ve got you!” tration) showed that almost one-
She not only completed the climb, but returned to the bottom by quarter of those in their mid-50s
means of a 115-foot free-air rappel and a midair rope swing. hold debt that exceeds half their
Ms. Grutter has met climbers ranging from their 20s to their 80s, “all assets, compared with fewer than
of them cheering each other on and giving each other tips.” one-tenth in the early 1990s.
She also sees benefits spilling over to all aspects of her life. Moreover, almost one-quarter of
“I think a lot of people look at these years as a time of decline,” she that age group has less than
says. “Having been involved in this now, I see this as a period of real op- $25,000 in savings vs. 17% in the
portunity to accomplish things. I think we can make a difference in what previous cohort.
that experience of aging is by what we engage in.” Against this backdrop, what will
Ms. Grutter says that while her husband is proud of her climbing ac- rising interest rates mean for
complishments and keeps a photo of her climbing as a screen saver on many older Americans?
his computer, her mother is less supportive. She continually asks, “Now I would not be surprised to see
that you’ve done this, can you please quit?” them experiencing more financial
Ms. Grutter hopes to continue climbing for the next several years. She stress and potentially more risk of
recently returned from another trip to Utah which included “six days of bankruptcy. In fact, borrowers 65
scrambling” and “a couple impromptu short beginner climbs.” She plans and older are already defaulting
to continue her indoor climbs in the winter and in summer as well. twice as often as their younger
“I just want to keep challenging myself and progressing,” Ms. Grutter counterparts, and this rate is likely
says. “I will continue to do this until I break or I’m bored.” to grow as the Fed tightens. More-
—Julie Halpert over, more than one-quarter of
people ages 56 to 66 are already
Another option would be to work
longer, which would ease the bur-
den of paying back expensive debt.
To some extent this is already hap-
pening, as our recent paper
showed that older women already
are seeking and holding on to jobs
longer than ever before, due to
their lack of a financial cushion.
So higher interest rates will be
bad news for many older people.
By contrast, those who have saved
for old age will benefit from the
interest-rate rise via higher re-
turns on their investments.
—Olivia S. Mitchell, professor, the
Wharton School, University of
Pennsylvania
i i i
A More Tax-Efficient Way
To Give to Charities
As the end of the year ap-
proaches, many investors may still
need to take their required mini-
mum distributions from an IRA for
2017. And these same investors
also may be completing their char-
itable giving for the year.
What many don’t know is they
can take advantage of a strategy
that allows them to combine those
two needs and reduce their taxes.
For most taxpayers age 70½ and
older, making a qualified charita-
ble distribution from an individual
retirement account is a more tax-
efficient method of making philan-
thropic contributions than with-
drawing the money from an IRA
and then donating that money.
A qualified charitable distribu-
tion of up to $100,000 can be
made annually from a traditional
IRA directly to a qualified charity.
You also can roll funds from a
401(k) to an IRA and then make
the qualified charitable distribu-
tion, but you can’t make a distri-
bution directly from a 401(k).
Qualified charitable distributions
also count toward your required
minimum distributions (RMDs) for
the year, but they can’t be claimed
as a charitable deduction on your
tax returns.
—William Reichenstein, professor,
Baylor University; research head,
Socialsecuritysolutions.com
when they do, it’s easy to bungle
the call and miss the opportunity
to get all your questions answered.
Most doctors can’t (or won’t)
bill for these calls, so it’s basically
free care. But people tend not to
realize that it takes away from the
doctor’s time with other patients,
which in turn reduces income for
the practice, which means even
more patients have to be seen per
hour to cover costs. In the end, it
only bites us back when we are the
patient sitting in the office.
So here are a few suggestions to
help you and your doctor achieve
the same mission of providing
good medical care in the most effi-
cient manner and at minimal cost:
1. Before any phone calls can be
made, you must have an initial
visit to establish a good doctor-pa-
tient relationship and enable him
or her to learn about your medical
and psychiatric history and cur-
rent state of health. It’s also criti-
cal to get to know the office staff.
They perform multiple tasks and
are the gatekeepers to the doctor.
2. At the initial visit, ask about
the policy on phone calls, includ-
ing whom to call, how long to wait
for a callback, and what issues the
doctor will or won’t handle. There
are often physician assistants or
nurse practitioners who can also
step in for many questions.
3. Phone calls aren’t appropriate
for urgent, complex or new issues
that are producing excessive pain,
worry or other symptoms.
4. Phone calls are appropriate
for concerns about medication side
effects and refills, test results, and
recurrent or lingering issues that
were addressed in recent appoint-
ments (e.g., the ointment only
worked a little—now what?).
5. Organize your thoughts and
questions ahead of time by writing
them down. If there is a secure
email or electronic portal set up
by the office that conforms to pri-
vacy laws about electronic trans-
mission of medical information
(i.e., HIPAA regulations), send in-
formation and questions to the
doctor for review before your call.
—Marc Agronin, geriatric
psychiatrist, Miami Jewish Health
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
THE WALL STREET JOURNAL. NY Monday, November 13, 2017 | R11

JOURNAL REPORT | ENCORE

Forget Triathlons. It’s Time for Aquabike.

For triathletes who hate the running part, ing hills, unlike Miami.

there’s a new sport that offers a path to glory Race day

BY KATHLEEN A. HUGHES
WHEN I PROUDLY told friends
that I had qualified for the
world championships in aqua-
bike this past August, at age
60, I faced blank stares and
concerned questions.
“How does the bike move in
the water?”
“Do you practice on a sta-
tionary bike in the pool?” my
brother-in-law asked.
The answer is that aquabike
is a relatively new sport in tri-
athlon, a race that normally
includes a swim, bike and run.
In aquabike, you get to skip
the run.
While races vary, the most
common distance is a 1.2-mile
swim and a 56-mile bike ride.
“Swim, bike, done,” enthusi-
asts say.
tional Triathlon Union’s multi-
sport world championships in
Penticton, British Columbia.
That elevation of aquabike
gave me—a distinctly below-
average triathlete and a slow
runner—a new loophole to
qualify for Team USA and at-
tend the world championship,
a goal that had eluded me de-
spite a great deal of effort.
As I detailed in an earlier
article about taking up triath-
lons in my late 50s, it seemed
like a quick path to glory. I
could land on the podium in
small, local races—simply be-
cause so few women in my age
division showed up.
I quickly became addicted.
But when the smaller races
qualified me for national
championships—where the top
18 qualify for Team USA—I
made an unwelcome discov-
By race day, I was emotion-
ally done. The alarm went off
Bottom half. at 4 a.m., and I drove my
Two things were becoming group of equally wired team-
clear: I needed a coach to help mates to the site in the dark.
me get faster. And I really The starting gun went off at
wanted the Team USA outfit 6:55 a.m., beginning a 3-kilo-
with my name on the butt. meter swim around Okanagan
Mostly, I wanted the outfit. Lake. I was eighth coming out
I hired a coach and began to of the water—out of 15 in my
train upwards of 12 hours a age division.
week, made easier by the fact After being stripped of my
that I had put aside my free- wetsuit by volunteers, I set
lance writing to focus on this out on the bike, and began the
one goal. I began to get faster, three challenging, if highly
but my run times were lagging. scenic, loops that made up the
Then, in the summer of 120-kilometer bike course.
2016, my coach emailed, say- It was hot. A Japanese ath-
ing aquabike had just been in- lete was walking her bike up a
cluded in the national champi- steep hill. New Zealand, Can-
onships, scheduled for Miami ada and South Africa riders all
in November. Here was my zoomed past me.
chance to qualify for Team “Go Hughes! Go U.S.A.!” by-
USA, wear the uniform, and le- standers screamed. (How
gitimately compete at the could they know my name, I
world championships in Brit- wondered, momentarily for-
ish Columbia, she wrote. getting that outfit I was so

While the number of partic-
ipants in triathlons has de-
clined in the past few years,
aquabike is growing rapidly,
partly by appealing to older
athletes with running injuries.
“It’s growing like a weed,”
says Chuck Graziano, a direc-
tor of USA Triathlon who has
a titanium knee and competes
in aquabike. “It doesn’t in-
clude the pounding of running.
It can be age-related, injury-
related, or people who just
prefer not to run.”
Indeed, the number of
aquabike races sanctioned by
USA Triathlon, the sport’s gov-
erning body, has more than
doubled in five years to 562
races with 5,160 aquabikers
last year.
Other hybrids
Its creation follows other
race variations with equally
weird names: Duathlon is a
run, bike, run competition,
and aquathlon is usually a
swim, run contest. But aqua-
bike, the first hybrid to nix
running, gained status this
past August when it was in-
cluded in the 2017 Interna-
ery: Lots of women in the
60-64 division showed up
from all over the country.
And they’re fast.
Case in point: When I went
to the national championships
in Milwaukee in 2015, I was
59th out of 70 in the Olympic
distance triathlon, with a time
of 3:23:41. Many of my com-
petitors sailed past me in the
run—wearing sleek Team USA
triathlon suits with their
names on their butts.
And when I qualified for the
national championships in
Omaha the next year: same
thing. I moved up just one
notch, to 58th place out of 68
in my division, with an even
slower time of 3:41:15.
Speed hurts
It all seemed hopeless, par-
ticularly the run. I have arthri-
tis in my knees, and when I
took up speed intervals, trying
to become faster, I tore my
hamstring, broke my foot and
developed plantar fasciitis, in
that order.
Last year, USA Triathlon
ranked me 300th out of 449 in
my age division, female 60-64.
At first, I was insulted.
Aquabike is a weird name. Tri-
athlon conjures up Ironman
races and the uber-fit. Aquabike
conjures up…a bike underwater.
It also seemed like a triathlon
for people who can’t run.
But as I studied the sign-
ups, I realized she was right.
The top 18 in each age group
would qualify for Team USA,
and just a few had signed up so
far. I realized, incredibly, it
might be possible to get the
Team USA outfit and be at a
world championship by default.
I signed up, and after swim-
ming the 1.2 miles in a lake
and biking the 56 flat miles
through farmland, I came in
7th of 12 in my division with a
time of 3:59:55.
I didn’t make the podium,
but no matter: All 12 of us had
qualified for Team USA, and
we shared a collective joy at
our statistical good fortune.
We were in.
I’ll take two
As soon as the team outfits
became available, I ordered
two. They were spectacular in
a sleek blue compressive fab-
The author, at the world championships in British Columbia.
ric with red, white and blue
stripes on the sides and stars
on the legs. Best of all, they
were emblazoned with my
name, right on the butt.
It took me a while to grasp
that the British Columbia
world championships meant
there would be athletes from
38 countries competing over
11 days in a long series of
races. I would be among those
representing the United States
of America in aquabike.
If you’re prone to anxiety, it
can be alarming to realize that
you have qualified for a world
championship—thanks to a
statistical quirk. Also, having
an age-division ranking of 300
out of 449 doesn’t inspire con-
fidence. It’s like landing on the
U.S. Olympics pole-vaulting
team by mistake.
While I sometimes wavered,
I also knew, at age 61, this
would likely be my one shot at
a world championship. Ever.
FINISHERPIX.COM
But the training assign-
ments were now harder. The
course at the world champion-
ships was a third-again longer
than the race in Miami, with a
swim of 3 kilometers and a
bike course of 120 kilometers.
My days were now dominated
by four-hour bike rides and
3,000-yard swims.
My coach thought I was
ready.
Arriving in British Columbia,
I soon found a support group
of six women who had mostly
qualified the way I did. “I just
don’t know if I’m going to fin-
ish the bike,” was the refrain.
That was a stark contrast to
the international athletes
pouring into the place, includ-
ing the ultrabuff set from
places like New Zealand. They
looked like a different species.
Our newly formed support
group prepared by driving the
bike course, commenting that
it seemed long, with intimidat-
proud of.)
I finished 11th out of 15—
although two in my age divi-
sion had a dreaded “DNF”—
did not finish.
So it could have been
worse.
After racking my bike, I ran
across the finish line for my
photo, smiling broadly.
But, of course, that wasn’t
the end. I now own a major
collection of Team USA triath-
lon suits, swimsuits and a pa-
rade outfit, inspiring me to
sign up, once again, to com-
pete at the national champion-
ships in Miami—which took
place yesterday.
More women signed up in
my age group this year and I
nervously tracked the totals
right up until the night before
the race. Next year’s world
championship is in Denmark.
In the end, I finished 11th of
16, with a time of 4:07:05.
Pending official results, it looks
like I’m going to Denmark. But
either way, I have the outfit.
Ms. Hughes is a writer living
in California and New York.
Email: reports@wsj.com.

SECOND ACTS

THIRTY YEARS IN CORPORATE

FINANCE. NOW COMES DESSERT.
KAYLANA BROWN

clicked. Customers chose their own unique

Rob West
Age: 61
Hometown: Simi Valley, Calif.
Primary career: Corporate finance
Current path: Ice-cream franchisee
Why this path: Mr. West says of his cus-
tomers, “They come in happy and leave
happier.”
Ice cream has always held pleasant mem-
ories for Rob West. “I can’t remember many
years growing up when my mom didn’t
serve an ice-cream dessert,” he says. “When
ice cream was being passed around, it was
always the happy times.”
Now 61 and living in Simi Valley, Calif.,
Mr. West is having his dessert once again.
After a 30-plus-year career in corporate fi-
nance, first with two consulting giants, then
an insurer, Mr. West has found a way to re-
live the joys of his childhood—as a propri-
etor of several ice-cream shops.
Mr. West started out as an entrepreneur
at 12, selling lightbulbs door to door. To earn
money for college, he bought 11 used movie
projectors and drove around Salt Lake City
selling them to audio-video dealers.
When it came time for a career, however,
he chose corporate finance. He found it re-
warding. But continuously looking for ways
to reduce costs was stressful, he says.
He increasingly longed to do something
on his own terms, to be his own boss as
head of his own company.
Then, on a visit to Boise, Idaho, he
stepped into an ice-cream parlor with a dif-
ferent kind of concept—and something
mix of ingredients, the type of cream, the
flavors and add-ins. The order was then
dipped in liquid nitrogen, creating instant ice
cream in a burst of frigid fog.
The shop was part of a franchise called
Sub Zero Ice Cream, and Mr. West immedi-
ately wanted one for himself. This was in
2010, and the company wasn’t yet registered
to sell franchises in California. So Mr. West
spent the next two years working with the
company to register the business in Califor-
nia, and negotiating issues with city officials
in Simi Valley, where he wanted to open.
He often works 12-hour days now. Still,
he relishes it. With three stores now, he su-
pervises young employees, keeps the books,
takes inventory and caters. His experience in
marketing, sales, financing and accounting
have helped, and he’s still learning about ad-
vertising, inventory and construction.
One of his favorite tasks, he says, is the
science presentations he gives at schools in
which he demonstrates the unique properties
of nitrogen. He’ll dip a rose in liquid nitrogen
for five seconds, then crush it with his hand.
It breaks into “a million pieces,” he says.
For the grand finale, he pours water into
a bucket of nitrogen. “It makes this huge
cloud of fog blow up 20 feet. There are
times when if I do it just right, I’m lost in
this cloud and nobody can see me.”
Mr. West says he’s gained 20 pounds.
Still, he sees his product as a bridge to hap-
piness. His customers are often celebrating
an occasion, whether it’s a sports team or
families commemorating a milestone.
“I just feel I’m lucky to be part of that,”
he says.
—Julie Halpert
R11A | Monday, November 13, 2017 THE WALL STREET JOURNAL.

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THE WALL STREET JOURNAL. Monday, November 13, 2017 | R11B

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The Retail        
Real Estate
Showcase

 
    
    
     
        
Advertise in The Wall Street Journal’s upcoming special         
advertising feature and reach key commercial real estate decision
         
makers. Produced in partnership with The International Council
       
of Shopping Centers, this section will cover top retail trends and
      ! 
explore the economic value proposition created by shopping
centers and the retail industry.

Bonus Distribution:
ICSC: NEW YORK NATIONAL DEAL MAKING
December 6, 2017 | New York, NY

Issue: December 6 | Close: November 29

Section: The Retail Real Estate Showcase
        
    

For more information on advertising opportunities, please contact:

Lauren Swan at lauren.swan@wsj.com | 212.597.5989

Source: 2016 Ipsos GBI Study; 2016/17 Purchase Influence

in American Business Study, Erdos & Morgan.
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R12 | Monday, November 13, 2017 THE WALL STREET JOURNAL.

JOURNAL REPORT | ENCORE

The Older I Get, the Less I Seem to Know

They say wisdom comes with age. Maybe, but not the kind of wisdom I always cared about.
I mentioned a few of the notables I
BY JOHN BUSKIN
could put her in touch with. She re-
sponded to every name I listed with
OLDER BUT WISER. a blank stare. Well, maybe some of
How many times a day do we them had moved on. I dug out my
older people hide behind that chest- vaunted Rolodex, and as I went
nut? Or that wisdom comes with through it I realized many of the
age? Or if only I knew then what I people in it had worked at jobs that
know now? don’t exist anymore. Many of the
Well, I don’t mean to sound too people, in fact, don’t exist anymore.
curmudgeonly, and I’m not really Technology is yet another realm
that old (just having turned 70), but where my ignorance shines through.
I want to throw at least some cold This was an area I knew. I worked on
water on the older-but-wiser con- websites. I was always in tune with
ceit. In many of the ways I long used advances in technology. But just the
to keep score, I don’t feel nearly as other day I had a phone conversa-
wise as I used to. tion with a tech-support guy. Mostly,
Sure, I can probably tell you it was incomprehensible. It seems
things I’ve seen and done and tech-speak has outgrown me. As I
learned along the way. I can probably threw out terms like Unix, baud rate
tell you the mistakes I’ve made and and Xywrite, I must have sounded
what you can learn from them (not like that friend of the family when I
that anybody will ask or learn). And was a child who would ask, “So you
I know plenty of facts: I can quote like that go-man-go rock ’n’ roll,
Wordsworth and can grasp the dif- huh? Hot-cha!”
ference between hot and cold fusion.
Still, what about the day-to-day Plenty smart
things that I’ve long used to define I don’t want to sound like a com-

my wisdom? Unfortunately, those
are things that I no longer know, or
can no longer do.
Older but wiser? More like older
but dumber.
Not a clue
Let’s start with crossword puz-
zles. I am not ashamed to say that
my lifelong thirst for knowledge was
in service of a toxic crossword de-
pendence. When my uncle (who
solved crosswords like the wind)
started calling me for answers some
years ago, I took great pride in being
able to tell him.
“Are you sure you want me to tell
you?” I would ask him. He answered
with an unpleasant noise from his
vocabulary of unpleasant noises. I’d
give him the answer and he’d vocal-
ize an even more unpleasant noise.
Finally, he gave up the puzzles,
though he continued growling and
harrumphing until he died.
Poor old guy has lost his cross-
word-puzzle edge, I thought.
Now who’s the poor old guy?
These days, I find that so much of
the knowledge I acquired in the past
is dated at best, obsolete at worst.
With rap artists increasingly being
the answers to puzzle clues, I find
myself sliding into my uncle’s pre-
dicament.
Yes, with my smartphone, I can
google clues. So at least I am spared
the public ridicule my uncle had to
endure. But while googling the an-
swer makes it possible to continue,
getting external help has trans-
formed my crossword habit into a
moral and ethical cesspool—and
made it a lot less fun.
Harrumph.
Who is that?
What’s more, it’s clear that my ig-
norance—for crossword puzzles and
otherwise—extends well beyond the
music scene. On line in the super-
market not long ago, I picked up a
People magazine and paged through
it. Amazingly, I didn’t recognize even
one of the celebs inside. Not a single
one. As my children grew up, they
kept me somewhat current in terms
of pop culture, videogames and hip
vernacular. But now they’re adults
living in another city. And they don’t
have time for a regular pop-culture
tutorial (no pun intended).
Then there are the humble comic
The most valuable
thing I’ve learned is
that the stress I felt
for way too long sucks.
books, which have morphed into
two-hour-plus movie epics. There
are superheroes as specialized as
dermatologists. And they fight with
each other…on teams! I went to see
“Ant Man” with a friend and her son,
and when other superheroes showed
up on-screen, I whispered a request
to the son to tell me what was going
on. Without taking his eyes off the
screen he said, “It’s too compli-
cated.” Comic books?
I concede that part of the prob-
lem is that I never really acquired a
hobby. I can blame that on being too
busy working. But it probably was
more laziness.
I now see what I missed. I once
took a figure-drawing class taught
by an older man who’d been drawing
the human form for more than 60
GARY HOVLAND
years. Watching the movement of his
hand with the charcoal across the
big pad, I perceived that, after draw-
ing all this time, his gesture was as
much art as the image itself. He was
poetry in motion. He had achieved
his expertise through long experi-
ence. Certainly my skills have taken
a hit, but wasn’t there something I
used to do that I did artfully or at
least well? Something where my ex-
perience, my wisdom, could shine
through? Then I remember the
Jazzercise leader who stopped the
class to say to me, “You are very
clumsy, yes?”
People who matter
Like so many people, much of my
wisdom revolved around work, and
especially my list of contacts that I
could pull out at any moment, help-
ing the younger, not-so-wise, young-
ster starting his or her way up the
career ladder. After all, “it’s who you
know,” and I knew them all.
In that spirit, I recently offered
my daughter-in-law, who is working
in my field, the benefit of my “juice.”
plete curmudgeon. (Too late, I
know.) As I said, I am plenty smart
about lots of things (see Words-
worth and cold fusion). Not only
that, I am smarter in a few key ways.
The most valuable thing I’ve learned
is that the stress I felt for way too
long really sucks.
Take away stress and you lose
weight and get happy. It feels like
the teams you root for win more of-
ten. Or, more important, when they
lose, it simply doesn’t matter as
much.
And maybe, just maybe, I can learn
to be smart enough to know that it
doesn’t really matter that I can’t keep
up with the pace of change. Maybe
the crossword puzzle is just some-
thing I used to do more easily. Maybe
I’m not missing anything by not
knowing pop culture or comic-book
movies or the movers and shakers.
Maybe I don’t need to know how the
latest technology works.
In other words, maybe I don’t
have to feel so dumb, if I just change
my definition of wisdom. If I can do
that, I just may be smarter than
ever.
Mr. Buskin is retired and lives in
upstate New York. He can be
reached at reports@wsj.com.

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