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FRIDAY, JULY 21, 2017 ~ VOL. CCLXX NO. 17

* * * * * *

DJIA 21611.78 g 28.97 0.1%

NASDAQ 6390.00 À 0.1%

STOXX 600 384.07 g 0.4%

10-YR. TREAS. À 1/32 , yield 2.266%

WSJ.com

OIL $46.79 g $0.33

GOLD $1,244.80 À $3.60

Poles Take to Streets as Lawmakers Seek to Rein In Court

What’s News Business & Finance

H

edge-fund managers are preparing to pay billions of dollars in taxes resulting from the financial crisis-era closing of a loophole on offshore gains. A1

Several regulators have dropped pursuit of a longrunning plan to restrict bonuses on Wall Street. B1 The ECB delayed discussion over whether to wind down its bond-buying program, echoing global caution over weak inflation. A8 Microsoft’s revenue rose 13% as the company continued its rebirth as a force in cloud computing. B1 Pay for lowest-income Americans is rising faster than for other groups for the first time in years. A2 PepsiCo’s CEO named a lieutenant to the vacant No. 2 post, shuffling potential successors to her job. B1 BP has approached potential buyers for its oiland-gas fields in the North Sea, where it helped pioneer deep-water extraction. B3 Apollo is preparing an IPO for ADT, just a year after it bought the home-security company. B3 The Dow industrials lost 28.97 points to close at 21611.78, pulled down by a drop in Home Depot. B11 Blackstone recently made a roughly $3 billion bid to acquire RLJ, which has a deal to merge with FelCor. B3

World-Wide The Treasury imposed a $2 million fine on Exxon for what it called a “reckless disregard” of U.S. sanctions on Russia while Tillerson was the oil giant’s CEO. A1

UP IN ARMS: Demonstrators in Warsaw on Thursday protested a bill that would allow the government to replace every judge on the Supreme Court, a move opposition politicians and European Union leaders warned undermines democracy in the once-communist nation. A8

Sears Links With Amazon, Jolting Appliance Industry

BY SUZANNE KAPNER AND LAURA STEVENS

that have been benefiting from Sears’s retreat. Lowe’s Cos. tumbled; Home Depot Inc. and Best Buy Co. fell 4% apiece.

Amazon’s rapid growth has displaced traditional stores and left even powerful brands unable to ignore it. Nike Inc., one of the biggest holdouts, recently decided to start selling directly to Amazon.

For Sears, selling Kenmore outside its own stores or websites could give it a boost in sales, which have declined every year since 2007. “This will

Sears Holdings Corp. said Thursday it will start selling its Kenmore appliances on Amazon, loosening its grip on one of its historic product lines and becoming the latest big American brand to capitulate to the online-retail giant.

News of Amazon’s move into appliances, one of the categories it hasn’t deeply penetrated, rippled through the industry. Investors dumped shares of big appliance sellers

Sessions Says He Will Stay in Post

Mueller is investigating possible money laundering

by Manafort as part of the probe into alleged election meddling by Russia. A4

Senate Republicans pushed a plan they said could ease the impact of their health bill’s Medicaid cuts. A6 Sessions said he plans to stay on as attorney general, after Trump said he regretted the appointment. A6 Poland’s lower chamber of parliament approved a bill that would let the government replace every judge on the Supreme Court. A8 The EU is threatening Poland with its harshest punishment due to the vote. A8 China characterized trade talks with the U.S. that appeared to end without progress as “positive.” A9 Airlines and airports have made the security improvements needed to drop the ban on laptops in plane cabins, the DHS said. A3 O.J. Simpson was granted parole by Nevada officials.

The ex-football star could be freed as early as October. A3 Two online markets for drugs, firearms and other illicit goods were shut down in a global operation. A6 CONTENTS Business News.. B3,6 Crossword.............. A13 Heard on Street. B12 Life & Arts...... A12-13 Mansion............. M1-10 Markets............. B11-12

Opinion.............. A15-17 Sports....................... A14 Streetwise................. B1 Technology............... B4 U.S. News............. A2-6 Weather................... A13 World News....... A8-9

>

s Copyright 2017 Dow Jones & Company. All Rights Reserved

YEN 111.91

Big Tax Bills Loom For Fund Managers

give the Kenmore brand access to a new set of customers who aren’t necessarily shopping at Sears,” said Dev Mukherjee, a former president of Sears home appliances, who now works at a private-equity firm.

But also it gives shoppers one less reason to visit a Sears department store. “We believe most Amazon sales will simply cannibalize Sears stores,” said Loop Capital analyst Anthony Chukumba, since other major retailers don’t currently sell Kenmore.

Sears’s long-battered shares

jumped 11% to $9.60, while Amazon, based in Seattle, closed at an all-time high of $1,028.70. Amazon’s market value is closing in on $500 billion, Sears’s hovers near $1 billion.

Kenmore is Amazon’s first retail offering in major appliances. Previously, most major appliances available on Amazon were via third-party sellers on its marketplace.

“Amazon is a continual improvement machine, and Kenmore is a brand with extraorPlease see SEARS page A6

Hedge-fund managers are preparing to pay billions of dollars in taxes due to a 2008 decision to end a loophole that long benefited some of Wall Street’s wealthiest investors.

Steven Cohen is among those who will have to write huge checks in early 2018. The billionaire founder of SAC Capital Advisors LP amassed deferred offshore income of more than $1 billion likely subject to the taxation, said people familiar with the matter.

Other hedge-fund managers facing personal tax bills of over $100 million include David Einhorn of Greenlight Capital Inc. and Daniel Loeb of Third Point LLC, said people familiar with the matter.

Total payments from all managers could amount to $25 billion, according to a 2008 estimate from the Joint Committee on Taxation. Some tax specialists say the bill could be even higher: $100 billion or more.

The 2008 tax change affects federal, state and local taxes.

This will likely mean a surge of tax revenue for Connecticut, historically the center of the hedge-fund industry. The state isn’t yet sure how much it will reap, a spokesman for the governor’s budget office said.

“Any projection would be too speculative to be reliable,” the spokesman said.

Hedge-fund managers are considering several steps to raise cash or soften the tax blow. Some will trim stakes in their funds to raise cash, said Brett Barth of hedge-fund inPlease see TAX page A2 Hedge funds snap six-quarter streak of outflows................. B11

CHINA’S THEME-PARK BID HAS FEW ATTRACTIONS Lacking Disney’s popular movie characters, Dalian Wanda opts to sell

JIM LO SCALZO/EUROPEAN PRESSPHOTO AGENCY

Anthony Scaramucci is expected to be named to the post of White House communications director. A4

EURO $1.1632

BY GREGORY ZUCKERMAN AND ROB COPELAND

BARTLOMIEJ ZBOROWSKI/EUROPEAN PRESSPHOTO AGENCY

Sears said it would start selling Kenmore appliances on Amazon, the latest big American brand to capitulate to the online giant. A1

HHHH $4.00

COMEBACK: U.S. Attorney General Jeff Sessions on Thursday said he has no plans to leave the Justice Department and will pursue the administration’s priorities, in a response to President Donald Trump’s comment that he regretted appointing Mr. Sessions. A6

Welcome to the Supreme Court!

The Turkey Wraps Need More Mayo i

i

i

By custom, the most-junior justice must run the building’s infamous cafeteria

BY JESS BRAVIN

“There’s not much one can do to make the fare better,” WASHINGTON—Justice Neil says Justice Ruth Bader GinsGorsuch survived a Senate burg. The committee is “a grilling to get his seat on the truly disheartening assignment.”

Supreme Court.

Justice Gorsuch Now, as the court’s arrives at the cafemost-junior memteria as something ber, he’s the chief of a stealth candijustice of the grill. date.

President Tradition dicDonald Trump, detates that each spite running sevnewcomer to the eral restaurants in nation’s highest trihis hotel empire, bunal must serve selected a judge on the committee Frozen yogurt with practically no that oversees the machine food-service expecourt’s cafeteria, a rience.

185-seat facility The 10th U.S. Circuit Court open to the public on the of Appeals, where Justice Gorbuilding’s ground floor.

It isn’t a job that justices such previously sat, has no Please see COURT page A11 relish.

Chinese billionaire Wang Jisaid people familiar with the

By Wayne Ma in Beijing matter. The visit to Shanghai anlin visited Shanghai Disneyand Ben Fritz land last fall to see for himself Disney revealed what his parks in Los Angeles attractions drawn from the Dislacked, one of Mr. Wang’s execney catalog, from Star Wars utives said—a fantasy world and Pirates of the Caribbean to Snow White where visitors were immersed in familiar and the other fairy-tale princesses. stories with popular characters.

Mr. Wang, whose competing theme parks This month, Mr. Wang’s Dalian Wanda lean toward stomach-churning thrill rides, Group announced plans to sell most of its had voiced contempt for Disney’s bringing theme-park properties for more than $13 bilits brand of Americana to China. “One tiger lion, including debt. Mr. Wang, 62 years old, is no match for a pack of wolves,” he said in is preparing for an IPO of his property busia 2016 TV interview. He described plans to ness in China but has yet to receive regulabuild as many as 20 theme parks in China in tory approval, prompting him to reduce debt a growing showbiz empire that included and raise cash.

AMC Entertainment Holdings Inc. and LegWanda didn’t make Mr. Wang available for endary Entertainment, a Hollywood producan interview and declined to comment for tion and finance company. this article.

Yet attendance at the theme parks Mr. While Hollywood has become reliant on Please see WANDA page A11 Wang built so far has been disappointing,

Cloud Lifts Microsoft Microsoft Corp. solidified its position as a force in cloudcomputing, posting stronger-thanexpected gains in its business selling web-based services to corporate customers. B1 Change from previous year in Microsoft’s cloud and Windows segments revenue Intelligent Cloud 10%

$7.4B s11%

5 0 –5 More Personal Computing

–10

$8.8B t2%

–15 –20 FY 2016

’17

Note: Fiscal year ended June 30.

Source: the company

THE WALL STREET JOURNAL.

U.S. and Exxon Spar Over Russia Sanctions WASHINGTON—The U.S. Treasury Department on Thursday imposed a $2 million fine on Exxon Mobil Corp. for what it called a “reckless disregard” of U.S. sanctions on Russia

By Samuel Rubenfeld, Lynn Cook and Ian Talley while Secretary of State Rex Tillerson was the oil giant’s chief executive, a finding the company immediately said it would challenge.

Exxon, under Mr. Tillerson, in early 2014 deepened the company’s longstanding partnership with the Kremlin despite Washington evying sanctions against Russia for annexing Crimea and supporting pro-Russia separatists in eastern Ukraine. In May of that year, the Treasury Department said the company signed eight documents relating to oil and gas projects in Russia that were

also signed by Igor Sechin, chief executive of the state oil giant PAO Rosneft. Treasury said Thursday those deals violated U.S. sanctions against Mr. Sechin, a former Russian intelligence officer and top ally to President Vladimir Putin.

Mr. Tillerson, who had close business ties to Russia and received an “Order of Friendship” award from Moscow, left Exxon last year to become U.S. Secretary of State. The $2 million fine, Treasury said, was the maximum amount it could levy against the company.

A spokesman for Exxon called the fine “outrageous” and said it would fight the Treasury’s findings, saying they are a 180-degree turn from previous guidance handed down by the Obama administration when the sanctions were enacted. TreaPlease see EXXON page A4 Mueller probes possible money laundering by Manafort...... A4

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A2 | Friday, July 21, 2017

THE WALL STREET JOURNAL.

* ***

U.S. NEWS

For the Low Income, Big Growth in Pay

BY ERIC MORATH For the first time in years, pay for the lowest-income Americans is rising faster than for other groups.

Weekly pay for earners at the lowest 10th percentile of the wage scale rose at a faster rate last quarter, year-to-year, than for any other group measured by the U.S. Labor Department—including those at the top of the income scales who earn five times as much.

The shift for full-time low-income workers—including restaurant workers and retail cashiers—who make about $10.75 an hour, is a sign that a tightening labor market is delivering better pay to workers who largely haven’t shared in gains since the recession ended eight years ago, according to economists and government data.

Last quarter marked the first time since late 2010 that this earning group’s gains outpaced all others, including the 90th, 75th, 50th and 25th percentiles.

Rising minimum wages in

many states is one factor.

Usual weekly earnings for workers ages 25 and older at the bottom of the pay scale rose 3.4% from a year earlier in the second quarter, according to analysis of newly released Labor Department data. That was stronger than the median gain of 3.2% and the 3.1% improvement for workers at the 90th percentile, who earn more than nine in 10 other Americans. The percentage increases are based on a four-quarter average of earnings, to smooth out volatility in the data.

Throughout much of the economic expansion that began in mid-2009, wage gains for the lowest-earning Americans trailed median wage gains and those of the highest earners.

The annual raise for the lowest earners was below 1% annually during 2015, less than half as strong as the median gain.

The recent improvement for low earners coincides with a downward trend in the U.S. unemployment rate, which stood at 4.4% last month, versus 4.9%

a year earlier. The unemployment rate for those with less than a high-school education— who make up much of the lowwage workforce—fell even more sharply, to 6.4% last month from 7.5% a year earlier. Tighter labor supply in theory should

push up wages.

Wages have been rising swiftly in fields such as restaurants, amusements and gambling, said Jed Kolko, economist at job-search site Indeed. That is an indication that employers need to pay more to attract

workers into those fields.

“In a strengthened economy, people spend more on entertainment and eating out, raising demand for workers in those fields,” he said. Those wage gains also at least partially reflect rising minimum wages, which have increased in 21 states this year.

Usual weekly earnings is a different wage measure than the more broadly cited average hourly earnings figure reported in the jobs report each month.

The quarterly figure incorporates overtime pay, commissions and tips that might not be captured in the hourly figure.

Average hourly earnings have been stuck near a 2.5% annual increase for most of the past year and a half. But the jobs report shows stronger wage growth in the lowest-paying broad sector, hospitality.

Average earnings’ failure to rise even while many Americans are doing better reflects a slowdown at the top.

“The slowdown has been particularly sharp within the

Wage Race Accelerates to Fend Off Poachers

BY RUTH SIMON As the job market tightens, many small-business owners are racing to boost pay to keep experienced hands from jumping ship.

Robert White typically gives raises of 1.5% to 3% at Dahlstrom Roll Form, a 113-year-old a manufacturer of steel products in Jamestown, N.Y. But over the past three years, workers have received increases in pay and benefits totaling about 10% annually.

Mr. White, the company’s president, calls the raises “a proactive strike” designed to keep his 35-person team in place. “Business is better, so we are able to do it,” he added.

Even with the latest increases, wage growth at small firms is only now approaching that of larger companies, which typically pay more than small firms. The increase is being fueled by heightened demand for employees and websites like PayScale and Glassdoor that make it easier for both workers and bosses to see what competitors pay.

Wage growth for existing employees accelerated by 1.07% annually over the past three years at companies with fewer than 50 employees, according to an analysis of ADP

TAX Continued from Page One vestor BBR Partners LLC. Hedge funds often invest through vehicles based inside and outside the U.S. They make money from their cut, typically 20% or more of trading profits.

For decades, the Internal Revenue Service allowed managers of offshore funds to defer receipt of this compensation and both avoid an immediate tax bill and grow the savings tax-free. The IRS generally permits businesses to allow executives to defer compensation because such deferrals lower the firms’ compensation costs, forcing them to pay higher taxes on profits. That offsets income taxes not immediately paid by employees.

But this practice cost the Treasury income in the case of offshore hedge funds that don’t pay any offsetting U.S. taxes.

Managers in some cases let those deferred trading fees THE WALL STREET JOURNAL (USPS 664-880) (Eastern Edition ISSN 0099-9660) (Central Edition ISSN 1092-0935) (Western Edition ISSN 0193-2241) Editorial and publication headquarters: 1211 Avenue of the Americas, New York, N.Y. 10036 Published daily except Sundays and general legal holidays. Periodicals postage paid at New York, N.Y., and other mailing offices.

Postmaster: Send address changes to The Wall Street Journal, 200 Burnett Rd., Chicopee, MA 01020.

All Advertising published in The Wall Street Journal is subject to the applicable rate card, copies of which are available from the Advertising Services Department, Dow Jones & Co. Inc., 1211 Avenue of the Americas, New York, N.Y. 10036. The Journal reserves the right not to accept an advertiser’s order.

Only publication of an advertisement shall constitute final acceptance of the advertiser’s order.

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NEED ASSISTANCE WITH YOUR SUBSCRIPTION? CONTACT CUSTOMER SUPPORT. By web: customercenter.wsj.com By email: wsjsupport@wsj.com By phone: 1-800-JOURNAL (1-800-568-7625) Or by live chat at wsj.com/livechat

Small Firms, Bigger Raises Wage growth is increasing faster at smaller employers as they seek to retain staff in a tight job market.

Companies by number of employees 1-49 50-499 500-999

1,000+

Percent increase in average raises over the past three years ALL INDUSTRIES

2%

2.10%

1.07%

1

EDUCATION/ HEALTH CARE

LEISURE/ HOSPITALITY

1.22%

0

2%

CONSTRUCTION

1.13%

1

RETAIL/ WHOLESALE TRADE

1.04%

MANUFACTURING

0.91%

0

2% 1

INFORMATION

0.83%

PROFESSIONAL SERVICES

0.80%

FINANCIAL SERVICES

0.51%

0 Source: Moody’s Analytics

THE WALL STREET JOURNAL.

data by Moody’s Analytics for The Wall Street Journal—well above the 0.69% average increase for firms of all sizes over the same period.

Small businesses are feeling the pressure, Mark Zandi, chief

economist of Moody’s Analytics, said. “They have to work harder to keep employees now that the labor market is tight.”

There were 5.7 million job openings in May, the latest month for which data were

compound tax-free for 10 years or longer. Some also deferred management fees, even as they amassed large fortunes from gains earned by their U.S.-based funds.

“They kept rolling and rolling the money,” said Richard Zarin, a partner at Morgan, Lewis & Bockius LLP. The New York Times in 2007 highlighted this loophole, and Congress overwhelmingly voted to close it the following year as a way of raising revenue and stabilizing the financial sector during the 2008 financial crisis. The change, part of the Emergency Economic Stabilization Act of October 2008, was made in section 457A of the IRS code.

The legislation gave managers a decade to pay taxes on money accumulated before the law changed. That deadline is now nine months away.

The deferred fees will be taxed at ordinary tax rates that can be close to 50% depending on where the managers live and work, according to tax experts.

“These are smart, aggres-

sive people who don’t want to pay more than they have to, and writing a huge check can be quite demoralizing," said Jonathan Brenner, a tax partner at Caplin & Drysdale, a law firm that specializes in tax law. “Most recognize they’ve had a good run and now have to pay the piper, though not after first asking six different ways if there’s some silver bullet” to eliminate or reduce the taxes.

Mr. Cohen, who ran SAC Capital before it pleaded guilty to criminal insider-trading charges in 2013, is nearing a launch of a new firm to manage as much as $20 billion, The Wall Street Journal has reported. Mr. Cohen settled a related civil case without admitting or denying wrongdoing.

He has set that $20 billion target, which would exceed the $16 billion managed at peak by SAC, partly because he wants to generate income to help pay the large tax bill, a person close to him said.

Other fund managers are shifting headquarters to Flor-

CORRECTIONS AMPLIFICATIONS Dalian Wanda Group on July 10 announced a deal to sell 76 of its 102 hotels to Sunac China Holdings Ltd. Since then, Wanda has found a different buyer. A Page One article on July 11 about Wanda’s planned sale of most of its theme parks and hotels incorrectly said that the deal with Sunac involved 72 hotels.

Tonto National Forest was incorrectly called Tonto National Park in a U.S. News caption Tuesday with a photo of

volunteers searching for a man missing after weekend flooding in Arizona.

David Marsh coached Auburn University’s swim team to 12 national titles. A Sports article Wednesday about advances in video analysis in swimming incorrectly said he won 10.

American Express Co. was incorrectly referred to as America Express in some editions Thursday in a Page One What’s News summary.

Readers can alert The Wall Street Journal to any errors in news articles by emailing wsjcontact@wsj.com or by calling 888-410-2667.

available, according to the U.S. Bureau of Labor Statistics.

According to a June survey of roughly 800 companies by the Journal and Vistage Worldwide Inc., 58% of smallbusiness owners reported increased difficulties finding needed workers. Many have responded by boosting pay or benefits, while others have stepped up training or slowed the pace of growth.

Craig Zoberis, president of Fusion OEM, a contract manufacturer outside Chicago, has raised hourly pay for entrylevel workers by $1 for each of the past three years. Over the past two years, he has also stepped up efforts to reward the best employees on his production floor, who can now see their pay jump by as much as 73% over a four-year period.

“With the competition going on for top employees, we had to meet and exceed what the marketplace is looking for,” he said.

But rising pay is also burdening small firms, which typically operate with thinner margins than bigger competitors. With wages up, “there are things we are scrimping on,” said Julie Irwin, owner of Spectrum Building & Restoration Corp. and a Servpro franchise in Bend, Ore., which recently gave new and ex-

isting employees raises of as much as 10% to 20% to keep competitors from poaching them.

She has been forced to delay purchases of new vehicles and tools for the 23-person contracting firm, which specializes in fire and water damage cleanup and restoration. “We are making do with what we have,” she said.

Younger workers—those under age 35—are capturing the biggest pay increases, according to the Moody’s Analytics analysis.

At Gold Systems Inc., a software firm in Salt Lake City, Utah, “year two and year three salaries are much higher than they used to be,” said owner Dave Wilcox, noting that $10,000 raises have become more common for employees with starting salaries of $50,000 to $60,000. Younger workers come to the negotiating table well-armed.

Higher salaries for new workers are also driving adjustments. Matt Haney, chief executive of Universal Network Solutions Inc., an information technology consultancy in Minneapolis, boosted pay by 12% to 17% over the past two years after experienced workers realized that they earned less than new hires. “We had unknowingly fallen behind and had to make up for that,” he said.

First Moves Taxing of overseas gains hasn’t slowed openings of U.S.-based hedge funds outside America's borders.

Percentage of new launches per year 100%

Other Luxembourg

75

Ireland 50

British Virgin Islands Cayman Islands

25

U.S.

0 2008 ’09 ’10

’11

’12

’13

’14

’15

’16

’17*

*2017 figures are year-to-date Note: Numbers may not add up to 100% due to rounding Source: Preqin THE WALL STREET JOURNAL.

ida to mitigate the tax impact, said a local official. Florida doesn’t have a state income tax on personal income.

“Even four or five years ago they saw this coming, they knew they’d bring money back in and needed to be in a state with lower taxes,” said Kelly Smallridge, president of the Business Development Board of Palm Beach County.

Those moves are no guarantee of a smaller tax bite because states generally examine where and when deferred compensation was earned, experts say.

“People have been banging on our doors since the provision was enacted looking for a solution and we still have clients coming in, but one hasn’t been found,” said Mr. Brenner.

“Every tax lawyer who touches hedge funds has had these kinds of calls….There’s frustration among some clients that a solution has not been found.”

Some charities say managers anticipating a tax bite are discussing donations—to receive an immediate tax deduction—rather than handing money to the government.

Other managers are turning to charitable lead annuity

trusts, said Henry Bregstein, an attorney at Katten Muchin Rosenman LLP. These trusts give a donor an upfront deduction of 100% as well as the opportunity to transfer to heirs, free of gift and estate tax, the trust’s remaining value at the term’s end after making annual, fixed distributions to charities.

Eileen Heisman, chief executive officer of National Philanthropic Trust, said her organization is speaking to roughly 50 fund managers about establishing donor-advised funds by the end of the year, three times the usual pace. She attributes the increase to the looming tax bills. Such funds make grants to charities on behalf of donors after they contribute assets, enabling immediate tax deductions. Assets can be invested and grow tax-free even before the charities are chosen.

Sometimes this money can be invested in the manager’s own funds, with restrictions, Ms. Heisman said. There’s no way of knowing how much money will be paid in taxes or how much will be shifted to charitable groups, she said. “But we think it will be very large.”

top 5%,” Goldman Sachs economists wrote in a research note Thursday. “One possibility is that some high-wage individuals could be delaying the recording of earnings, given the possibility of a future income tax cut.”

Still, higher-earning Americans have fared much better during the expansion. Pay for workers in the 90th percentile has increased nearly 20% since mid-2009. Pay for the 10th percentile worker rose 12.5%, not enough to offset inflation.

“We’re starting to see wage pressure at the two ends—the high-skilled end and the lowskilled end,” Philadelphia Federal Reserve President Patrick Harker said in an interview this month. “Where the squeeze is still happening is the middleskill jobs.”

He said that could partially reflect new technologies emerging to supplant better-paid workers. For example, he said, sophisticated document-reading software is reducing law firms’ need for young associates.

U.S. WATCH BALTIMORE

Video of Officers Leads to Review Baltimore’s top prosecutor announced a review of nearly 100 cases involving three officers who appear in a body-camera video that allegedly shows evidence being fabricated.

Determining whether cases involving the officers under scrutiny can be brought to trial “is going to take time,” Baltimore State’s Attorney Marilyn Mosby said Thursday.

The public defender’s office released the video this week.

Police Commissioner Kevin Davis said Wednesday that the officer accused of planting the evidence, which was used to charge a man with possessing and trying to distribute drugs, has had his police powers suspended. Two other officers shown in the video are on administrative duty.

After reviewing the video, prosecutors dismissed the case.

—Associated Press TEXAS

Senate Ramps Up To Tackle Divisive Bills The Texas Senate staged an unusual floor session in the early morning hours on Thursday as conservatives who dominate the chamber rushed to revive abortion restrictions, school vouchers and a “bathroom bill” aimed at transgender people.

Senators passed bills allowing the Texas Medical Board and other state agencies to continue operating during the opening moments of just the third day of its monthlong special legislative session.

“It’s a hurry because we have 30 days and 20 bills,” Lt. Gov. Dan Patrick, who oversees the Senate, told reporters.

Clearing those agency oversight measures allows the Senate to tackle more divisive issues at breakneck speed. That pace doesn’t guarantee any will become law, though, since the Texas House is moving more slowly with plenty of time left in an extra session running through Aug. 18.

—Associated Press APOLLO 11 MISSION

Bag With Traces Of Moon Dust Is Sold A bag containing traces of moon dust sold for $1.8 million at an auction on Thursday following a galactic court battle.

The collection bag, used by astronaut Neil Armstrong during the first manned mission to the moon in 1969, was sold in New York at a Sotheby’s auction of items related to space voyages.

The buyer declined to be identified. The pre-sale estimate was $2 million to $4 million.

The artifact from the Apollo 11 mission had been misidentified and sold at an online government auction, and the National Aeronautics and Space Administration had fought to get it back. But in December a federal judge ruled that it legally belonged to a woman who bought it in 2015 for $995.

Sotheby’s declined to identify the seller.

—Associated Press

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THE WALL STREET JOURNAL.

Friday, July 21, 2017 | A3

* *

U.S. NEWS

Air Safety Fixes End Ban on Laptops

BY SUSAN CAREY

ELAINE THOMPSON/ASSOCIATED PRESS

Hundreds of foreign airports and U.S. and overseas airlines have made security enhancements necessary for passengers traveling direct to the U.S. to carry laptops into the cabin, the U.S. Department of Homeland Security said Thursday.

As of Thursday, all 180 U.S. and foreign airlines and 280 foreign airports have met the first phase of the expanded security rules, the department said. As a result, the agency is no longer banning passengers from bringing laptops and other electronic devices into airplane cabins for trips the U.S. The agency had considered expanding that restriction because of fears that terrorists are aiming to take down a plane with explosives hidden in a laptop or tablet.

The agency instituted a laptop ban in March for foreign carriers serving the U.S. from 10 airports in the Middle East and North Africa. Since then, those airlines have met enhanced security goals and the laptop ban has been dropped.

The last two airports, both in Saudi Arabia, were cleared Thursday.

Earlier this week, the agency said some airlines flying from the 280 foreign airports in 105 countries could still face restrictions on passengers transporting personal electronic devices as more security protocols are put in place. A DHS spokesman said he didn’t know the number of airlines that could potentially be affected. No further restrictions are in place now, he said.

In late June, officials gave airlines 21 days to meet a mandate to install explosivetrace detection scanners at their foreign airports to randomly screen fliers’ carry-on bags.

More changes need to be made within four months, according to a memo the International Air Transport Association sent to its member airlines. Those steps include closer scrutiny of planes on the ground and more intensive customer screening.

Audience members cheered the Seattle City Council’s approval of a city income tax on the wealthy on July 10. The mayor is expected to sign the measure Friday.

Court Fight Likely for Seattle Tax

BY ZUSHA ELINSON A new tax-the-rich measure in Seattle would hit about 9,000 taxpayers—about 2%— but the impact could go beyond wealthy Seattleites.

Washington is one of seven states in the country, including Florida, Texas and Wyoming, without an income tax. Backers of the Seattle measure expected to be signed this week by Mayor Ed Murray, a Democrat, are spoiling for a legal fight they believe will pave the way for a statewide income tax.

Taxpayer advocacy groups, meanwhile, are gearing up for litigation, confident that the state courts will reject this tax as they have in the past.

The new Seattle measure would impose a 2.25% tax on any income over $250,000 or above $500,000 for couples filing jointly. The city would use the estimated $140 million in new annual revenue to fund affordable housing, education and transit services, and replace federal funding that might be lost because of budget cuts.

The city, which is the midst of a tech boom, already has a balanced budget.

Backers are hoping to upend the state’s tax system starting

with the Seattle measure.

“Seattle is challenging this state’s antiquated and unsustainable tax structure by passing a progressive income tax,” said Mr. Murray. “Our goal is to replace our regressive tax system with a new formula for fairness.”

Some business leaders say that the income tax would make Seattle less inviting to businesses and job seekers, and cause wealthy residents to move outside the city limits.

“As a venture capitalist helping build companies, we are recruiting talent from other parts of the country and the world,” said Matt McIlwain, managing director at Madrona Venture Group, who has formed a group to fund the legal fight against the tax. “The whole area of attracting talent would be much harder.”

In a recent radio interview, former Microsoft Chief Executive Steve Ballmer said that the income tax would hurt business in Seattle. “It would drive up wages here, and cause people to have to think about moving jobs elsewhere,” he said. “That would certainly happen.”

Neither Microsoft, based in nearby Redmond, Wash., nor Amazon.com Inc., based in Se-

Businesses Worry About Broad Impact A local tax-the-rich measure in a state with no income tax is unusual and so there has been little research on the type of economic impact it could have, said Justin Marlowe, a public finance professor at University of Washington’s Evans School of Public Policy & Governance.

Based on the small number of taxpayers, Mr. Marlowe predicted it wouldn’t have a big immediate impact. But he said that businesses will be con-

cerned that this could be the “proverbial camel’s nose in the tent” that leads to imposing income taxes on a broader swath of earners.

The state has the most regressive tax system in the nation, according to the Institute on Taxation and Economic Policy, a nonpartisan research group. The state’s poorest 20% of residents, or those making less than $21,000 a year, pay 16.8% of their income, and the richest 1%, or those making $507,000 or more, pay 2.4% of their income, according to the group.

—Zusha Elinson

attle, have taken public positions on the tax.

A Microsoft representative declined to comment. A representative for Amazon didn’t return requests for comment.

Combined with new legislation in Seattle to raise the minimum wage to $15 an hour, “everything makes it a little more difficult to do business,” said J. Thomas Ranken, CEO of the CleanTech Alliance, which represents clean technology companies in the area.

Molly Moon Neitzel, owner

of local chain Molly Moon’s Homemade Ice Cream, said she welcomes the new tax even though it will likely eventually hit her family.

“The inequality in wealth distribution in Seattle has just gotten really extreme since we started recovering from the recession,” said Ms. Moon Neitzel.

Seattle has seen housing costs and homelessness soar in recent years.

The expected legal fight over the measure could lead to a fundamental change to the

unique politics of Washington, a liberal-leaning state with a longstanding aversion to taxing income. A similar measure lost in the capital city of Olympia last year, and a tax-the-rich statewide initiative was voted down in 2010.

The last time voters passed a graduated statewide income tax, it was struck down by the state Supreme Court in 1933 as unconstitutional. The state Constitution requires that property be taxed at a uniform rate, which the court said applied to income in turning down the tax. The state also has tight restrictions on the authority of cities to impose such taxes.

John Burbank, executive director of the Economic Opportunity Institute, a nonprofit that pushed the Seattle tax measure, said he welcomes the legal challenge: “We live in a much different society and polity now than 80 years ago.”

The Freedom Foundation, a nonprofit that has fought tax measures, is readying for a battle. “Those who oppose this new tax are right on the law,” said David Dewhirst, litigation counsel for the group. “The problem is we have a very political court. You can’t at all depend on them adhering to that.”

BY SARA RANDAZZO

JASON BEAN/AGENCE FRANCE-PRESSE/GETTY IMAGES

Nevada officials granted parole to O.J. Simpson, agreeing on Thursday to release the 70-year-old former football star from prison as early as October.

Mr. Simpson, whose 1995 murder trial was recently revived through a popular television series and documentary, has served nine years for the armed robbery of sports memorabilia from a Las Vegas hotel room. He was acquitted on the murder charges.

Mr. Simpson bowed his head and looked relieved as four members of the state parole board each voted in favor of his release.

Coverage of Mr. Simpson’s hearing streamed live over the internet and TV feeds, harking back to his murder trial that riveted the nation.

Mr. Simpson came up for parole after serving the minimum time on an up-to-33-year sentence stemming from his 2008 conviction on charges including kidnapping, burglary

Ex-football star O.J. Simpson reacts after the parole decision.

and assault with a deadly weapon.

“I am sorry things turned out the way they did,” Mr. Simpson told the four-member board Thursday. He recounted his discipline-free stay in prison and how he has become a more devout Christian who has counseled other inmates to help them stay out of trouble.

The more than hourlong hearing at times veered into a rehashing of the original crime, as Mr. Simpson told the board in detail what happened on the 2007 day when he and several accomplices, some armed, stormed a Las Vegas hotel room.

Mr. Simpson expressed remorse for bringing along men that day to serve as armed security, but said he went to the room only to take back memorabilia and personal photos that he said belonged to him.

“I am no danger to pull a gun on anybody,” he said. “It was my property, I wasn’t there to steal from anybody,” he later added.

In his 1995 trial, Mr. Simpson was accused of killing his ex-wife Nicole Brown Simpson and her friend Ronald Goldman. Mr. Simpson was famously acquitted in that trial.

The parole board said Thursday that while it received many letters opposing Mr. Simpson’s release because of the 1995 acquittal, they wouldn’t consider that.

Hundreds of members of the media flocked to Nevada to watch the proceeding in Carson City, with Mr. Simpson appearing via videoconference from prison in Lovelock.

Mr. Simpson said he plans to live in Florida if he is released. He could stay in Nevada, he said, but “I don’t think you guys want me here.”

JASON WACHTER/ST. CLOUD TIMES/ASSOCIATED PRESS

Simpson Is Granted Parole by Nevada

Vandals broke a fence and released minks from a farm near Eden Valley, Minn., posing a risk to wildlife, a local official said.

Freed From Fur Farm to Face Death Presumed animal-rights vandals liberate 30,000 or more minks to a grim fate

BY QUINT FORGEY Tens of thousands of minks—valued at about $750,000—were released by vandals from a Minnesota fur farm this week and are at risk of death even as they wreak havoc on surrounding wildlife and farms.

The incident highlights the longtime clash between animal-rights groups and the more than $100 million domestic fur industry, which has seen prices collapse in recent years.

Stearns County Sheriff Don Gudmundson said a group of “nitwits” dismantled corrugated steel fencing at Lang Farms near Eden Valley late Sunday or early Monday, turning loose the facility’s entire mink population. The 30,000 to 40,000 freed animals, mostly jet-black and some blond-colored, are each roughly 17 inches long and

weigh about 3 pounds.

Mr. Gudmundson believes the culprits are misguided activists who don’t realize the harm they have caused for the animals they intended to liberate.

“They certainly don’t care about animals because thousands of animals are maybe already dead and certainly will die,” he said.

Alleged activists orchestrated a similar release of a few thousand minks at a neighboring ranch in Stearns County in 1998, he said, and other protests have helped push down prices of furs from mink farms across rural America in recent years.

Michael Whelan, executive director of Fur Commission USA, a mink farming national trade association, said a global supply glut is the cause of the drop in prices.

Katie Arndt, outreach coordinator for Minnesota’s

Animal Rights Coalition, said she wasn’t sure whether she supported releasing the minks, as the small carnivores will threaten the ecosystem and eventually die in the wild.

“This is one of these situations where you want to say, ‘Yay, they’re free!’ But are they really?” she said.

Mr. Gudmundson said the animals don’t know how to survive outside the farm, without regular access to water in 90-degree weather.

They also cannot handle the extraordinary stress brought on by natural events such as thunderstorms.

Of the 6,000 to 7,000 minks recaptured, at least 5,500 perished shortly after recovery.

The freed animals also threaten other species in a nearby wildlife preserve.

“They’re going to go in there and kill everything

that moves: the baby ducks, the baby geese, all the chipmunks,” he said.

At least one local farmer has called the sheriff’s office to report that 10 of his chickens were killed since the minks invaded the community.

The fur group is offering a $10,000 reward for information leading to the perpetrators’ conviction.

It says more than 85% of pelts in the global fur trade are farmed. The other 15% are trapped in the wild.

American mink farms produced 3.32 million pelts last year valued at $116 million, according to the Agriculture Department.

“The upper Midwest has always been kind of the center of the industry,” Mr. Whelan said. “It’s very important to the state and the local economies, in the rural areas especially.”

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THE WALL STREET JOURNAL.

U.S. NEWS

Why McCain’s Health News Stuns the Capital CAPITAL JOURNAL

By Gerald F. Seib

A

t one point in his remarkable run through the New Hampshire Republican primary in 2000, Sen. John McCain went into full maverick mode to describe his quest to upset his party’s prohibitive favorite.

“George Bush is out there raising money,” he said. “I’m going to be out there raising hell.”

Raising hell is what John McCain has always been willing to do, without much regard for party or precedent. Indeed, it often appears he can’t help himself.

It’s a style that occasionally infuriates Democrats and Republicans alike—but that ultimately has endeared him to many people in both parties who admire his life story and the courage that has been laced through its chapters.

That admiration explains why the capital went into a kind of shock Wednesday night when the news broke

years later, but it felt as if he’d never quite recaptured that 2000 lightning.

H STEPHAN SAVOIA/ASSOCIATED PRESS

that Mr. McCain has been diagnosed with a brain tumor.

At one Washington dinner, perhaps a dozen cellphones pinged more or less simultaneously with the news, which temporarily brought the proceedings to a halt.

Sen. Lindsey Graham, his closest friend in the Senate, articulated the view of many when he said that cancer has now picked the toughest opponent possible. And as if to underscore the point, Mr. McCain tweeted Thursday his intention to return to the Senate quickly.

In a capital full of diverse characters, John McCain is singular. Part of it is his remarkable story as a Vietnam War veteran: A young and somewhat reckless Navy pilot shot down over North Vietnam, grievously injured and then imprisoned under horrific conditions for more than five years, during which he declined opportunities to be released before his comrades. Candidate Donald Trump said during the 2016 campaign that Mr. McCain wasn’t a war hero, but few agreed.

There has followed a political career that took him first to the House and then to the Senate and ultimately to the Republican presidential nomination in 2008.

But it was that iconic 2000 presidential campaign that cemented the Arizonan’s

Sen. John McCain campaigning in Manchester, N.H., in the Republican presidential primary of 2000. reputation as a unique political figure.

T

o anyone who wasn’t there, it’s almost impossible to describe what it was like. He banked his whole campaign on winning the New Hampshire primary and set out to do so by canvassing the state, day after day, on a bus filled with aides and reporters and straight talk. In fact, it became known as the “Straight Talk Express,” and his doz-

ens of town-hall meetings were a cross between religious revivals and voter therapy sessions.

He slaughtered his party’s sacred cows and picked up support from disgruntled voters along the way. He said the GOP’s big-money donors not only owned Mr. Bush, but were destroying democracy.

He said an emerging federal budget surplus should be used not for tax cuts, but to pay down debt and bank money for Social Security. He

attacked the religious right, directly and repeatedly.

He became a kind of Pied Piper in New Hampshire. It wasn’t just reporters who followed him around. Voters did, too; some trailing him from one town hall to another.

In the end, he did win New Hampshire. But it wasn’t enough, because he went on to lose to Mr. Bush in South Carolina and ultimately in the race for the nomination. He finally won the elusive nomination eight

e returned to the Senate after his 2008 loss to Barack Obama and seemed deflated at first.

But then he roared back and now leads the powerful Armed Services Committee and occupies a prominent place in every debate and controversy. Among other things, as a victim of torture himself, he has emerged as a powerful voice against harsh interrogation techniques.

Sen. McCain has occasionally struck colleagues as tired and disoriented in recent days, probably early signs of his ailment. But when he appeared last month at a Wall Street Journal conference for an onstage interview, he was sharp as ever.

And as outspoken as ever.

He talked of his disappointment that President Donald Trump didn’t raise humanrights concerns on his recent trip to the Middle East: “If we abandon our advocacy for human rights, we’re no different than any other nation that rises and falls throughout history,” he said.

“You can’t change human beings,” Sen. McCain added.

“They want freedom. They want human rights, and they look to us as the role model and our inspiration.”

Trump to Tap Scaramucci for White House Post Mueller WASHINGTON—Financier Anthony Scaramucci, a top donor to President Donald Trump during the campaign, is expected to be named White House communications director on Friday, two White House officials said.

Mr. Trump on cable news shows.

Mr. Scaramucci didn’t respond to a request for comment.

Separately, Marc Kasowitz, Mr. Trump’s personal attorney who is representing him in Special Counsel Robert Mueller’s probe of Mr. Trump’s associates’ ties to Russia, is expected to take on a lesser role on the president’s outside legal team, according to a person familiar with the shift.

Mr. Kasowitz’s spokesman, Mark Corallo, resigned from his post this week after less than two months on the job, according to a person familiar with his decision, after privately expressing frustration over the

By Michael C. Bender, Rebecca Ballhaus and Peter Nicholas Mr. Scaramucci, 53 years old, is the founder of hedge-fund investing firm SkyBridge Capital and a hedge-fund conference known as SALT. Known as “the Mooch,” Mr. Scaramucci previously hosted a show on Fox Business Network and has been a frequent guest advocating for

administration’s handling of episodes such as the revelation of a meeting Donald Trump Jr. arranged in June 2016 between top campaign aides and a Russian lawyer. Mr. Corallo didn’t respond to a request for comment.

Mr. Scaramucci, who worked at Goldman Sachs, would join a communications office that has been a target of criticism.

The White House has been seeking a communications director since Mike Dubke resigned from the role at the end of May. Mr. Scaramucci’s new job was first reported by Axios.com.

Mr. Scaramucci is currently serving as chief strategist at the U.S. Export Import Bank.

His appointment to that role followed months of uncertainty about Mr. Scaramucci’s prospects of joining the White House, after a promised role in the White House was handed to someone else.

The appointment of Mr. Scaramucci to the communications team comes as Mr. Trump’s lawyers are crafting a strategy that aims to contain Mr. Mueller’s investigation and ensure it doesn’t veer into Mr. Trump’s private business dealings.

“The special counsel’s investigatory activities are limited by his mandate. And looking at a real estate deal from 10 years ago would exceed that mandate,” said Jay Sekulow, a mem-

ber of Mr. Trump’s legal team, referencing a Bloomberg News story that said Mr. Mueller is looking into Trump business deals dating back years.

He added that the legal team would also be looking at potential conflicts of interest in the Mueller legal team. “Conflict of interest issues, if they arise, will be addressed in due course through the normal legal channels if we get to that stage.”

The recourse for Trump’s legal team would be to first approach Mr. Mueller and then the deputy attorney general overseeing the investigation, Rod Rosenstein, Mr. Sekulow said.

Mr. Mueller’s office declined to comment.

Continued from Page One sury’s sanctions unit started its probe of the alleged sanctions violation several years ago.

Exxon said it was first notified in 2015 by Treasury’s sanctions unit, the Office of Foreign Assets Control, that it had violated sanctions regarding its interactions with Mr. Sechin. In a filing in a Texas court Thursday, the company said it had challenged the notification about a month later.

Exxon doesn’t have any direct deals with Mr. Sechin, but does have business dealings with Rosneft, where Mr. Sechin signed company documents in his capacity as CEO, Exxon said.

According to the company, under President Barack Obama, the White House and Treasury in 2014 said U.S. companies were allowed to participate in business dealings with Mr. Sechin if they were professional, not personal.

On Thursday afternoon, the Irving, Texas-based company filed a complaint in U.S. District Court in the Northern District of Texas, seeking to toss the fine. In a court filing, Exxon said the sanctions unit “seeks to retroactively enforce a new interpretation of an executive order that is inconsistent with the explicit and unambiguous guidance from the White House and Treasury issued before the relevant conduct and still publicly available today.”

The Justice Department declined to comment about Exxon’s legal challenge.

The U.S. Treasury said in an enforcement notice against Exxon that the company showed “reckless disregard for U.S. sanctions requirements” when failing to consider the warning signs associated with dealing in the blocked services of someone under U.S. sanctions. The Treasury unit said one of the “aggravating factors” it considered was that Exxon is a globally sophisticated company that routinely deals with

MIKHAIL KLIMENTYEV/RIA NOVOSTI/REUTERS

EXXON

Rosneft CEO Igor Sechin, right, and then-Exxon Mobil CEO Rex Tillerson taking part in a signing ceremony in Russia in 2012. sanctions compliance concerns.

The Thursday notice said: “No materials issued by the White House or the Department of the Treasury asserted an exception or carve-out for the professional conduct of designated or blocked persons, nor did any materials suggest that U.S. persons could continue to conduct or engage in business with such individuals.”

When Mr. Tillerson took his position in President Donald Trump’s cabinet this year, he promised to recuse himself from matters involving Exxon for one year. He has stood by the current sanctions regime.

In Ukraine earlier this month, Mr. Tillerson said the U.S. sanctions on Russia—imposed along with sanctions from the European Union—would remain “until Moscow reverses the actions that triggered these particular sanctions.”

Mr. Tillerson, as Mr. Trump’s top diplomat, has been leading administration efforts to im-

prove relations with Russia.

Though the State Department referred most questions about this specific matter to Exxon, spokeswoman Heather Nauert said Mr. Tillerson is committed to the objectives of the Ukraine-related sanctions.

She said the State Department wasn’t involved with the deci-

The $2 million fine was the maximum the Treasury could levy against Exxon. sion to fine Exxon. She said Mr. Tillerson is “living up to his ethical commitments,” including his recusal from Exxon-related matters.

Rosneft spokesman Michael Leontiev said signing an agreement with Mr. Sechin not as an individual, but as a representa-

tive of Rosneft management, can’t be the foundation for a sanctions violation. “I am sure that while Exxon was preparing the decision about documents signing it consulted with both OFAC and lawyers specialized on sanctions very carefully,” he said.

The penalty comes as committees in the Senate and House, as well as a Justice Department special counsel, investigate what U.S. intelligence agencies say was a Kremlinbacked campaign to interfere in the election, and whether there was any collusion between the Trump campaign and Russia. Russia has denied meddling and Mr. Trump has denied any collusion.

“ExxonMobil caused significant harm to the Ukraine-related sanctions program objectives by engaging the services” of a sanctioned entity, Treasury said.

Exxon applied to the Treasury Department for a partial

waiver from Russia sanctions in 2015. The application was never acted upon at that time but was again circulating among government departments earlier this year. The Trump administration said it wouldn’t grant the waiver in April.

Exxon and other big energy companies also recently joined Mr. Trump in voicing concerns about congressional efforts to toughen sanctions on Russia, arguing that it could shut down oil and gas projects around the world that involve Russian partners. Mr. Tillerson opposed ramped-up sanctions being considered in Congress, saying the White House needs flexibility on the matter.

Lobbyists for Exxon told lawmakers in recent weeks that several provisions in the sanctions legislation under consideration are worrisome, including measures to prohibit partnerships with Russian individuals.

—Felicia Schwartz contributed to this article.

Probes Manafort Finances

BY ERICA ORDEN

Special Counsel Robert Mueller is investigating possible money laundering by Paul Manafort, President Donald Trump’s former campaign manager, as part of the criminal investigation into what U.S. intelligence agencies say was a Kremlin campaign to meddle in the 2016 presidential election, according to a person familiar with the matter.

The inquiry into the issue

by Mr. Mueller and his team began several weeks ago, this person said. A spokesman for Mr. Manafort, Jason Maloni, declined to comment, as did a spokesman for Mr. Mueller.

Mr. Mueller’s probe is focusing on Russian meddling as well as whether any members of the Trump campaign colluded with Moscow. Mr. Trump has denied any collusion and Russia has denied meddling.

The Senate and House intelligence committees also are probing possible money laundering by Mr. Manafort, according to people with knowledge of those investigations.

The Senate panel also has received reports from the Treasury Department’s Financial Crimes Enforcement Network, which tracks illicit money flows, to learn if any of Mr. Trump’s businesses may have financial ties to Russian interests, these people said.

Mr. Trump has said he has no such ties.

Mr. Manafort, a Republican political consultant, spent years working for a pro-Russia party in Ukraine. He served as Mr. Trump’s campaign manager for roughly three months in 2016 before resigning.

New York Attorney General Eric Schneiderman and Manhattan District Attorney Cyrus Vance Jr. also are probing Mr. Manafort’s real-estate transactions, The Wall Street Journal has reported, with both offices examining his dealings for possible money-laundering and fraud. Messrs. Schneiderman and Vance are Democrats.

Mr. Manafort has spent and borrowed tens of millions of dollars in connection with properties in the U.S. over the past decade, including a Brooklyn, N.Y., townhouse and California properties being developed by his son-in-law, the Journal has reported.

Through his spokesman, Mr. Manafort has said his “personal investments in real estate are all ordinary business transactions.”

—Shane Harris and Aruna Viswanatha contributed to this article.

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Friday, July 21, 2017 | A5

I CAN READ 5,000 NEW MEDICAL STUDIES A DAY AND STILL SEE PATIENTS. With Watson and IBM Services, doctors on 4 continents can use clinical guidelines, medical literature, and data from patientsóequivalent to about 300 million booksóto help them give advanced and personalized care.

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IBM and its logo, ibm.com and Watson 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. ©International Business Machines Corp. 2017.

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U.S. NEWS

Illicit Online Markets Shuttered Owners of forums for criminal goods are arrested, with assets frozen by authorities

Two of the world’s largest online marketplaces for criminal goods have been shut down in a global operation that also resulted in the arrest of their owners and the freezing of millions of dollars in alleged criminal proceeds, lawenforcement authorities said Thursday.

AlphaBay, which sold heroin, fentanyl, firearms and other illicit goods and allegedly serviced some 200,000 users and 40,000 vendors, was shut down this month and its infrastructure seized, the Justice Department said. U.S. Attorney General Jeff Sessions described it as “one of the most important criminal investigations of the year” and one that would serve as a blow to drug traffickers and other criminals.

The website’s alleged owner, Canadian-born Alexandre Cazes, was indicted in California in June and arrested in Thailand, authorities said. He was found dead in his jail cell on July 12. Authorities in Thailand, the Netherlands, Lithuania, Canada, the U.K.,

U.S. JUSTICE DEPARTMENT/REUTERS

BY ARUNA VISWANATHA AND ROBERT MCMILLAN

A website image showing an AlphaBay page after the alleged purveyor of such goods as drugs and firearms was shut down.

France and the European lawenforcement agency Europol participated in the investigation.

In addition to operating an anonymous “Dark Web” site, Mr. Cazes used digital currency and a web of interna-

tional bank accounts in an effort to conceal his identity, federal prosecutors said.

“They think they will get away with it because there are too many players in too many countries,” said Andrew McCabe, acting director of the

Federal Bureau of Investigation.

On Wednesday, the U.S. attorney’s office in Sacramento, Calif., filed a civil forfeiture action seeking to seize assets it said belonged to Mr. Cazes and his wife in Thailand, Cyprus and Liechtenstein, as well as Antigua and Barbuda.

Dutch police seized control of a second marketplace, Hansa Market, in late June and have had control of the site since, the Dutch National Police said Thursday.

Authorities closed the online marketplace on Thursday after arresting two men from Siegen, Germany, and seizing digital-currency accounts valued at about $2.6 million, or 1,000 bitcoins, Dutch police said. The two alleged administrators, aged 30 and 31, weren’t named by Dutch police.

By operating the Hansa website for several weeks, police were able to intercept tens of thousands of messages between sellers and buyers and collect more than 10,000 delivery addresses, Dutch police said. The site averaged 1,000 orders a day, most of which were for hard drugs, they said.

The surveillance is likely to give pause to some Dark Web users, said Nicolas Christin, an associate research professor at Carnegie Mellon University who studies online marketplaces. “This will probably

WASHINGTON WIRE

have a stronger chilling factor than a mere seizure,” he said.

Mr. Cazes, 25 years old, lived a lavish lifestyle in Thailand, where he owned 10 vehicles, including a $900,000 Lamborghini and a $293,000 Porsche Panamera, according to court filings. Mr. Cazes also owned a vacation home in Phuket, Thailand, and real estate in Bangkok and Cypress, as well as a beachfront property in Antigua and Barbuda, the filings said.

After discovering the keys to his digital-currency accounts stored on his home computer, police seized about $8.8 million in Bitcoin, Ethereum, Monero and Zcash, all digital currencies.

Investigators said Mr. Cazes earned commissions of between 2% and 4% on AlphaBay sales.

They counted more than four million AlphaBay transactions between May 2015 and February 2017 valued at about $450 million. Mr. Cazes earned between $9 million and $18 million in that period, they estimate.

Attempts to reach an attorney for Mr. Cazes weren’t successful.

Created in December 2014, AlphaBay was run by a team of about eight to 10 anonymous staffers, including a second site administrator identified only as “DeSnake,” federal authorities said.

GOP Floats Proposal to Ease Medicaid Cuts

BY LOUISE RADNOFSKY AND KRISTINA PETERSON WASHINGTON—Senate Republicans, scrambling to win support for their health-care bill, pushed a measure Thursday that they said could ease the impact of the bill’s Medicaid cuts on low-income people.

Advocating for the new direction is a little-known health official who is now at the center of the health-care fight: Seema Verma, head of the Centers for Medicare and Medicaid Services, which oversees the two federal medical programs.

Ms. Verma has recently become ubiquitous on Capitol

Hill, meeting with wavering senators one-on-one, speaking to groups of Republicans and citing her experience as an Indiana state official to argue the GOP proposals can work.

The Medicaid plan that is being advanced by some Republicans and Ms. Verma would use funds from the Affordable Care Act’s taxes to cut out-of-pocket costs for people who are forced to leave Medicaid due to cutbacks in the Republican bill.

It wasn’t clear Thursday whether Ms. Verma’s pitch would attract any of the GOP senators who said they were opposed to an earlier version

of the bill, let alone enough to let the bill squeak through. But at least one senator who has voiced concerns about the bill’s Medicaid cuts said Ms. Verma has taken a careful approach by providing data without overselling her proposal.

“She’s not in the business of lobbying, but she’s in the business of getting us good information,” Sen. Rob Portman (R., Ohio) said.

Sen. Bill Cassidy (R., La.) said, “She’s obviously a knowledgeable person who’s implemented innovative programs...That gives a great deal of street credibility.”

Sen. Susan Collins of Maine,

one of the Republicans who is opposed to the GOP bill, said she wasn’t convinced by the pitch because the amount going to consumers would fall far short of the bill’s $756 billion in cuts to federal Medicaid funding over a decade. Under the plan, up to $200 billion from the taxes would go to support affected low-income people.

“If you’re still going to take more than $700 billion out of the Medicaid program, you still have significant problems,” Ms. Collins said.

Administration officials, including Mr. Pence and Health and Human Services Secretary Tom Price, have visited Capitol

Hill in recent days. Republican senators have frequently cited Ms. Verma as providing detailed arguments for the GOP bill.

Still, Medicaid cuts are only one issue cited by Republicans concerned about the bill. Some worry about losing consumer protections; others fear premiums won’t be reduced enough.

Under the latest version of the Republican health bill, the number of uninsured would increase by 22 million in 2026, compared with the current law, according to an estimate by the Congressional Budget Office released Thursday.

—Stephanie Armour contributed to this article.

JUSTICE DEPARTMENT

Sessions Says He Plans to Continue Attorney General Jeff Sessions said he has no plans to leave the Justice Department and will “wholeheartedly” pursue the Trump administration’s priorities, a response on Thursday to President Donald Trump’s comment in a recent interview that he regretted appointing Mr. Sessions.

Mr. Trump told the New York Times on Wednesday that he wouldn’t have appointed Mr. Sessions if he had known he would remove himself from the investigation into Russian meddling in the 2016 election.

On Thursday, White House spokeswoman Sarah Sanders said Mr. Trump was “disappointed” in his attorney general’s decision to recuse himself earlier this year but that he didn’t regret keeping him in the role.

—Aruna Viswanatha SENATE

Trump Jr., Others Pressed to Testify The top Republican on the Senate Judiciary Committee said he would issue subpoenas if witnesses refuse to appear at a Senate hearing next week that will largely focus on a June 2016 meeting attended by President Donald Trump’s eldest son, top Trump campaign advisers and a group of Russian advocates.

Sen. Chuck Grassley (R., Iowa) said he will compel witnesses to appear at a hearing set for July 26 on the topic of foreign lobbying. Mr. Grassley has summoned onetime Trump campaign manager Paul Manafort and Donald Trump Jr. to the hearing, and others.

The committee is investigating a finding that Russia interfered in last year’s election and allegations the Trump campaign colluded with Moscow. The president has said he is skeptical about the finding regarding Russia, and that he and his aides didn’t engage in any election interference with Moscow. The Kremlin has denied it meddled.

Messrs. Manafort and Trump Jr. haven’t indicated what they plan to do.

—Byron Tau

Sears vs. Amazon: A Tale of Two Retailers The decline of Sears/Kmart and the rise of Amazon capture just how dramatically shopping in America has changed in recent years. As Sears has closed hundreds of stores, it has triggered anxiety about its future.

Amazon has been on a building binge and is set to swallow Whole Foods.

Change in number of U.S. locations since 2009

Sears –304

Kmart –678

Amazon +689

MIKE BLAKE/REUTERS

Two thirds of the Kmarts and nearly half the Sears stores in the Midwest have closed since 2009.

Amazon now has more than 260 facilities in 30 states.

Whole Foods will add hundreds more.

Kenmore washing machines and other Kenmore appliances now sold in Sears stores will also be available on Amazon.com.

SEARS Continued from Page One dinary heritage and awareness,” something that could transform it into a major winner in an online category currently lacking a dominant player, said Ken Seiff, a venture capitalist at Beanstalk Ventures and a former retail executive. “There’s no positive outcome” for brick-and-mortar competitors.

A Home Depot spokesman said: “We’re comfortable with our competitive positioning from both a brand and service perspective.” Best Buy declined to comment.

Amazon, which started selling books online more than two decades ago, is now gaining ground in a number of categories, from office supplies to home goods. After a serious push into apparel a decade ago, it is now one of the biggest clothing retailers, according to a recent Morgan Stanley survey, second only to WalMart Stores Inc. More than half of product searches now start at Amazon, according to personalization platform company BloomReach, versus 28% on search engines and even fewer at other retail sites. The company’s Prime subscription program, which according to UBS

has an estimated 63 million North American members, also offers companies broad access to customers.

Amazon has bigger ambitions than selling Kenmore products. The company plans to expand its reach in both furniture and appliances, according to people familiar with the matter. It is also building at least four massive warehouses focused on handling bulky items, the people said.

Under the Kenmore deal, Amazon will own the inventory but Sears will ship orders from its warehouses, a Sears spokesman said. Innovel Solutions, a unit of Sears, will deliver the goods to customers’ homes and provide installation services, he said. The companies didn’t disclose the terms of the deal.

“We’re constantly working to expand our selection,” said Matt Furlong, general manager of home improvement and appliances at Amazon.

The Kenmore name first appeared in 1913 on a sewing machine. The first Kenmore washing machine was introduced in 1927 and business boomed after World War II. And for years, the only place Americans could buy a Kenmore stove or washing machine was at their local Sears or Kmart.

But there are fewer of those

MIDWEST

NORTHEAST

SOUTH

WEST

Global Employment

Global Revenue

Revenue per Employee

In 2010, Sears employed 10 times as many people as Amazon. Now it has half as many...

...Sears sales shrank as it closed stores and spun off businesses...

...but as Amazon expanded it has started to resemble its old-line competitors in some ways.

350 thousand

$140 billion

$1.2 million $136

Amazon 341,000

0.6

70

175

$0.4 Sears/Kmart 140,000 $22 2008

’12

’16

2008

’12

Source: AggData, MWPVL and Whole Foods (store locations); FactSet and SEC filings (employment, revenue)

sprawling stores these days— nearly 1,000 have closed since 2009—and people aren’t buying as much from them.

The brand is now produced

by Whirlpool Corp., Electrolux AB and other manufacturers.

Sears’s share of major-appliance sales in the U.S. fell to 22% in the 12 months ended March, down from 30% four years earlier, according to

TraQline, a market research firm. In addition to Kenmore, Sears sells other brands. The Kenmore brand’s share of the market fell to 10.3% from 16.7% during that same period.

Sears CEO Eddie Lampert, a hedge-fund manager who took control of Kmart out of bankruptcy and merged it with Sears in 2005, had been looking at strategic options for the

$0.2

0

0

0

’16

2008

’12

’16

Yaryna Serkez and Theo Francis/THE WALL STREET JOURNAL.

company’s top brands for more than a year, as the parent company’s losses have mounted.

Earlier this year, he agreed to sell the Craftsman tool brand to Stanley Black & Decker Inc. for $900 million, helping to pay down debt and pension costs. Sears is still exploring options for its DieHard brand, Sears Auto Centers and

its Home Services unit.

The CEO has also been cutting spending and selling real estate to help the company fund its operations. He has also been financing the company, including a $200 million short-term credit line that Sears announced Monday.

—Andrew Scurria and Imani Morse contributed to this article.

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Carl E. Reichardt 1931 – 2017

Friday, July 21, 2017 | A7

President 1978-1983 Chairman & CEO 1983-1994

All of us are deeply saddened by the passing of Carl. His optimism and forward thinking exuded the spirit of the stagecoach. We see that every day in the impact he made at Wells Fargo.

Carl’s focus on our customers, team members and shareholders was instrumental in the growth of our business over the years. It was under his leadership that we broadened our outreach to low income communities. And it was Carl who established diversity as a core value for our company.

He will be greatly missed.

© 2017 Wells Fargo Bank, N.A. All rights reserved.

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THE WALL STREET JOURNAL.

* ***

WORLD NEWS

ECB Signals Wariness on Low Inflation Bank puts off decision on bond buying, echoing worries across globe over weak prices

BY TOM FAIRLESS FRANKFURT—The European Central Bank delayed discussion over whether to wind down its giant bond-buying program, underlining a recent tone of caution from global policy makers as they fight weak inflation.

ECB President Mario Draghi on Thursday welcomed a “robust” economic recovery in the 19-nation eurozone, but warned that stronger growth wasn’t yet translating into higher consumer prices.

“We need to be persistent and patient because we aren’t there yet,” Mr. Draghi said after the bank left its monetarypolicy mix unchanged on Thursday. The bank will discuss the future of bond purchases, known as quantitative easing, in the fall, he said.

“Basically inflation is not

where we want it to be and where it should be.”

The ECB mirrored a message of caution emanating from other major central banks, which are struggling to understand why prices aren’t picking up more rapidly despite robust economic growth.

The Bank of Japan earlier Thursday pushed back by a year the date when it expects to hit its 2% inflation target, the sixth time it has been postponed under Gov. Haruhiko Kuroda. Federal Reserve Chairwoman Janet Yellen said in testimony last week that the U.S. central bank was looking “very carefully” at recent weak inflation data.

Still, Mr. Draghi’s comments drove the euro to its highest level against the dollar in nearly two years. His bullish description of the eurozone economy appeared to bolster the narrative of an end to the ECB’s support of bonds, which would boost the euro’s appeal.

Bond markets, on the other hand, were stable. Mr. Draghi highlighted low eurozone inflation and said the bank

Note of Caution ECB President Mario Draghi welcomed the eurozone's economic recovery, but noted it hadn't yet lifted inflation.

Eurozone growth GDP, quarterly change at an annualized rate* 5.0 %

Unemployment rate†

2Q ’17: Estimate

2.5

Spain

Eurozone Germany

25

0

0

20

–2.5

15

–5.0

10

–7.5

5

–10.0 –12.5 2008 ’09

30 %

0 ’10

’11

’12

’13

’14

’15

’16

*Adjusted for inflation, seasonality and changes in the calendar Sources: Eurostat (historical, unemployment); J.P. Morgan (estimate)

would act cautiously, suggesting that stimulus could remain in place through 2018 and possibly beyond.

After years of easy-money policies, central banks in the U.K., Canada and the eurozone have all recently signaled they are preparing to follow the Fed by nudging interest rates higher. Some investors be-

’17

2008 ’09 ’10

’11

’12

’13

’14

’15

’16

’17

†Seasonally adjusted

lieved the ECB could move soon after Mr. Draghi recently hinted that the days of easy money might be numbered.

The ECB’s decision to stand pat surprised them.

“Contrary to what we too had expected, the ECB has not taken any step towards normalizing its monetary policy at today’s meeting,” said Ralph

THE WALL STREET JOURNAL.

Solveen, an economist with Commerzbank in Frankfurt.

Privately, though, ECB officials have long indicated that the bank might signal the future of the program at a policy meeting on Sept. 7. Mr. Draghi is due to speak at the Fed’s economic conference in Jackson Hole, Wyo., in late August, which could give him an op-

portunity to flag a policy shift.

The ECB’s €60 billion ($69 billion)-a-month bond-buying program has helped drive down market interest rates as the eurozone recovers from a yearslong economic crisis. Its future is one of the biggest questions hanging over financial markets. Asset prices, borrowing costs and the value of the euro currency will all be affected by its withdrawal.

But ECB officials face a dilemma: While the eurozone economy is accelerating, inflation, at 1.3% last month, remains some way below their near-2% target.

Mr. Draghi rocked financial markets last month in Sintra, Portugal, by suggesting that the ECB might soon wind down its bond-buying program as the region’s economy accelerates. Top ECB officials have since called for caution, wary of triggering a sharp rise in borrowing costs that could upset the region’s economic recovery.

Euro jumps, but bond markets remain calm........... B11

EU Weighs Actions Against Warsaw

BARTLOMIEJ ZBOROWSKI/EUROPEAN PRESSPHOTO AGENCY

BY EMRE PEKER

Polish policemen carried a protester away from a demonstration in Warsaw on Thursday. Thousands gathered to oppose changes in judicial law and the Supreme Court.

Poland Moves to Replace Its Highest Judges

BY DREW HINSHAW WARSAW—Poland’s lower chamber of parliament approved a bill that would allow the government to replace every judge on the Supreme Court, a move opposition politicians and European Union leaders warned undermines democracy in the once-communist nation.

The bill, which allows the government to retire all 83 judges on the country’s highest courts within the next two weeks, passed Thursday only eight days after it was first introduced. By nightfall tens of thousands people gathered to protest in the country’s biggest cities.

Under the proposed law, only judges granted exemptions by President Andzrej Duda would stay on. The justice minister would then ap-

point acting judges whom he would be able to fire at any moment. That would give the ruling Law and Justice party the leeway to take control of the judiciary, which it says is stocked with former communists who don’t represent the will of voters.

Poland’s Senate, where Law and Justice holds an absolute majority, is expected to ratify the bill by Friday. Mr. Duda would then need to sign it to turn it into a law that would take immediate effect.

EU leaders have called the bill an alarming step backward for Poland’s postcommunist democracy and a breach of EU legal standards, but have been powerless to intervene. That inability shows the bloc’s waning sway over its members in what was once Europe’s Soviet Bloc.

Poland, the largest of those countries, was once held up as

a model reformer, exemplifying the benefits of adhering to the EU’s liberal democratic vision for Europe. EU officials considered the fast-growing country a model for what countries like Turkey and Bosnia could gain by joining.

Now Poland is becoming instead an example of how little authority the EU can exercise even over its members. For months, Warsaw has repeatedly shunned proposals to speak on the issue of judicial independence with the European Commission, the EU’s executive arm. In May, several governments pushed Poland to engage with the commission, to no avail. Last week, Polish foreign and interior ministers again shrugged off another EU request for more dialogue.

Next week, the EU will adopt a set of recommendations for Poland—the third

such initiative—and debate potential disciplinary measures. Eventually, the EU could move to revoke Poland’s voting rights in the bloc, which would be a considerable and unprecedented rebuke of a member state.

“Sooner or later you will have to take the necessary steps to enforce the rules,” said Frans Timmermans, first vice president of the commission.

But actually punishing Poland for its Supreme Court law would be extremely difficult for the EU. In most cases, that would require unanimity from its members—including some, such as Hungary, that are also at odds with the EU over what a European democracy should look like.

For Poland, the bill underlines the conservative, nationalist government’s broad power to remake the largest

EU country formerly in the Soviet Union’s orbit.

Though the courts have been the central battlefield in that effort, the government has also increased its influence over media, passing a law last year that gives it the right to name the heads of the public TV and radio stations.

Poland’s Supreme Court is nearly the only domestic check on Law and Justice’s rule. The court holds the power to invalidate or validate election results. It can also block political parties from receiving state funding and functions as an appeals court for businesses and individuals who feel they aren’t being treated fairly by the government’s tax services, regulators or law enforcement.

—Emre Peker and Laurence Norman in Brussels contributed to this article.

BRUSSELS—The European Union is threatening to deploy its most severe punishment on a member state for the first time, highlighting what it sees as Poland’s grave departure from the bloc’s core tenets.

With Polish President Andrzej Duda poised to sign legislation into law that expands government control on the judiciary, Brussels may ask EU governments to formally warn Poland to reverse course, under provisions of Article 7 of the 2009 Lisbon Treaty that aim to protect the rule of law.

If Warsaw persists, EU governments could even impose sanctions on Poland up to suspending its voting rights.

“It should come as no surprise to anyone that given the latest developments, we are coming very close to triggering Article 7,” said Frans Timmermans, first vice president of the European Commission, the EU’s executive arm.

The provision for such action first entered EU treaties as the bloc considered expanding eastward after the Soviet Union’s collapse, with an eye to safeguarding its democratic principles.

If the commission triggers Article 7, EU governments may be able to muster the necessary four-fifths majority of states and the European Parliament’s consent to warn Warsaw. But sanctioning it would require unanimity among the 27 members other than Poland. That is likely impossible given Hungary’s support for Warsaw.

Poland’s bills propelled the commission to start a dialogue with Warsaw in January 2016 to prevent a breach of EU rules and treaties. Failing to make headway, EU officials issued two recommendations in July and December of last year, advising Poland on how to align its changes with the bloc’s criteria.

Warsaw dismissed the EU’s overtures as political interference.

BY ANDREA THOMAS BERLIN—Germany said it would take new steps in response to Ankara’s crackdown on human-rights activists, escalating a travel alert and reconsidering an investment program, as a feud that has tested relations between the traditional allies deepened.

Germany and Turkey have been at odds over a litany of issues, with tensions mounting further after the arrest this month of a German activist in Turkey under controversial terror laws that give authorities wide leeway.

Berlin says the accusations

against him are unfounded.

Government officials met Thursday to discuss possible actions. In addition to the escalated alert, Foreign Minister Sigmar Gabriel said the country must reassess a key program guaranteeing companies’ investments in Turkey and questioned plans to expand the decades-old customs union between the European and Turkey.

“We have to come to a realignment of our Turkey policy,” Mr. Gabriel said.

“We must be clearer than before so that those in charge in Ankara understand such a policy is not without conse-

quences.”

Germany exported €21.9 billion ($25.2 billion) of goods to Turkey last year, and imports from Turkey reached €15.4 billion, according to German government statistics.

Turkey’s Ministry of Foreign Affairs said in a statement that a serious crisis of confidence was brewing with Germany despite friendly ties between the nations.

The ministry said Germany has a double standard, repeating Turkey’s long held grievance that Germany allegedly gives a haven to supporters of the Kurdistan Workers’ Party, or PKK, and supporters

of U.S.-based cleric Fethullah Gulen, whom Mr. Erdogan has accused of masterminding a botched coup against his rule last summer, despite Turkey’s requests to extradite or arrest them.

Both the U.S. and Turkey have designated the PKK as a terrorist group.

Turkish police on July 5 arrested 10 Amnesty International activists, including German citizen Peter Steudtner, who had gathered in Turkey for what the organization called a routine workshop. Six of the activists have been jailed pending trial on charges of aiding a terror group.

KAY NIETFELD/ZUMA PRESS

Germany Raises Ante in Dispute With Turkey

German Foreign Minister Sigmar Gabriel spoke to reporters about the diplomatic crisis between Berlin and Ankara on Thursday.

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THE WALL STREET JOURNAL.

Friday, July 21, 2017 | A9

* * * * * *

WORLD NEWS

TOKYO—Japan’s timetable for achieving stable inflation has again been extended by a year.

The Bank of Japan on Thursday pushed back the date when it expects 2% inflation— the sixth time it has been postponed under Gov. Haruhiko Kuroda. The central bank now sees the target being reached

by March 2020, five years after Mr. Kuroda’s initial timing.

The BOJ also kept its main interest rates on hold and looks set to dig in for some time with its ultra-loose policy while the Federal Reserve and some other major central banks raise rates and the European Central Bank hints at scaling back its stimulus.

Mr. Kuroda, whose term ends next year, said the frequent inflation revisions were regrettable but wouldn’t affect the BOJ’s credibility.

“Central banks in the U.S. and Europe have also pushed back the timing to achieve their inflation targets a few times. There are some factors that are just too difficult for a central bank to control or predict, such as falls in oil prices,” the governor told a news conference.

However, many economists said they think even the BOJ’s latest forecasts are unrealistic.

In its quarterly economic outlook released on Thursday, the central bank said core consumer prices excluding fresh food would likely rise by an average of 1.1% in the year ending March 2018, down from a 1.4% increase forecast in April.

The bank lowered its inflation projection for the year ending March 2019 to 1.5% from a previous forecast of 1.7%. The headline inflation rate was 0.4% in May, the most recent data available.

On average, economists believe the inflation rate is likely to fall short of 1% this year and next, according to a July survey conducted by the Japan Center for Economic Research, a think tank.

Japan’s struggle to meet the BOJ’s price target comes despite brighter signs elsewhere.

The bank raised its economic assessment and said growth in the year ending March 2018 was likely to reach 1.8%, up from an earlier forecast of 1.6%.

With the targeted inflation rate expected to take longer to arrive, the board kept its target for 10-year Japanese government bond yields at around zero and its short-term deposit rate at minus-0.1%, as expected.

The bank also reiterated its promise to buy government bonds at an annual rate of ¥80 trillion ($715 billion), which investors saw as a gauge of its commitment to easing, even though the pace of purchases has already slowed to below that level.

BY BOB DAVIS WASHINGTON—Chinese negotiators on Thursday characterized high-level U.S.-China talks that appeared to end without progress as “positive,” saying the two sides were cooperating to narrow Washington’s $347 billion trade deficit with Beijing.

The negotiators said Beijing would work on U.S. priorities including expanding services trade with the U.S., reducing excess capacity in its steel industry and boosting agricultural imports, according to a lengthy statement released by the Chinese Embassy in Washington. It wasn’t clear whether these were new pledges or restatements of past positions.

The embassy said the Wednesday talks were marked by a “candid and friendly spirit” and produced “positive outcomes,” including a fresh set of talks to stretch over the coming year.

U.S. officials didn’t immedi-

ately comment on the Chinese statement. A day earlier they issued only a terse statement.

On Wednesday, Chinese officials in Beijing painted a rosier picture of Wednesday’s talks, with one describing them as “innovative, practical and constructive.”

The differing responses appear to reflect the political objectives of the two nations, said Eswar Prasad, a China scholar at Cornell University.

Beijing wants to show it can keep U.S.-China relations on an even keel before a Communist Party conference this fall where the senior leadership will be chosen, Mr. Prasad said. “The statement is meant for the audience back home,” he said.

The U.S. administration has a different purpose: showing that it can make progress in reducing the trade deficit, which President Donald Trump has blamed for what he says is American economic decline.

So, from his perspective, tension and uncertainty in the re-

Treasury chief Mnuchin, right, with his Chinese counterpart Wednesday. lationship can be used to try to change the status quo.

“Any tension in the relationship is something the U.S. could live with and something the Chinese want to avoid,” Mr. Prasad said.

It is unclear which side has the upper hand in future talks.

The most contentious issues involves the trade deficit and Chinese steel overcapacity.

After Mosul, Faraway ISIS ‘Provinces’ Fight On MIDDLE EAST CROSSROADS

By Yaroslav Trofimov DUBAI—In the three years since it proclaimed a worldwide caliphate, Islamic State has become a global franchise—which means the loss of its core in Syria and Iraq won’t pacify the far-flung conflict zones where the group’s affiliates operate.

Regional “provinces” of Islamic State have sprung up from West Africa to the Philippines after the group’s self-appointed “caliph,” Abu Bakr al-Baghdadi, seized the Iraqi city of Mosul in 2014 and demanded allegiance from Muslims world-wide.

Most of these “provinces” grew out of existing insurgent organizations, such as Nigeria’s Boko Haram or Ansar Beit al-Maqdis in Egypt’s Sinai Peninsula. These groups simply reflagged with Islamic State’s new brand— then seen as uniquely appealing to recruits and donors because of Islamic State’s seeming invincibility.

O

ther “provinces” were breakaways from relatively more-moderate groups, such as Islamic State Khorasan, which absorbed the most violent elements of the Taliban in Afghanistan and Pakistan. Some groups, like Boko Haram, controlled huge territory. Other Islamic State “provinces,” such as the one in Russia’s North Caucasus, consisted of scattered militants.

Government soldiers drive through Marawi, on the southern Philippines island of Mindanao, on June 14.

In any case, the conflicts in which these “provinces” thrived preceded Islamic State’s 2014 proclamation. And even after the recent liberation of Mosul and the impending collapse of Islamic State’s second-largest stronghold of Raqqa, Syria, these distant conflicts will persist.

“Operationally, the fall of Mosul changes nothing because every one of these groups is autonomous from Islamic State central,” said Mathieu Guidere, a terrorism expert at the University of Toulouse. “The only impact is psychological—these groups will fear that something like what happened to Mosul will happen to them, and will draw their lessons.”

In fact, just as Iraqi troops were mopping up the last pockets of resistance in Mosul,

Islamic State’s Asian affiliate halfway around the world attempted a dramatic takeover of Marawi, one of the largest Muslim cities on the southern Philippines island of Mindanao.

“Islamic State is a very resilient organization, it’s not one single group but a movement now,” said Rohan Gunaratna, head of the International Center for Political Violence and Terrorism Research at Nanyang Technological University in Singapore.

“And because the world has no real strategy to contain, isolate and eliminate Islamic State beyond Iraq and Syria, we will see a significant global expansion of this group.”

Asia, home to many more Muslims than the Middle East, is a particular concern.

“We should prepare for a Daesh pivot to Asia,” said

WORLD WATCH

Richard Javad Heydarian, a security analyst in the Philippines, using an Arabic acronym for Islamic State.

W

hile Islamic State— routed from much of its territory in Syria and Iraq—no longer has the winning momentum that once made it so attractive to potential jihadists, the organization has left a permanent mark on the motley assortment of militant groups that joined its caliphate project.

One consequence of Islamic State’s losses in the Middle East may be a rekindled debate within the organization’s affiliates about just how indiscriminately brutal they should be.

That issue has already split Boko Haram, with one faction treating anyone not

Hackers in U.A.E. Linked to Cyberattack

CARLOS GARCIA RAWLINS/REUTERS

BY MARGHERITA STANCATI

CAPITAL CLASH: Demonstrators collided with riot police in Caracas during a 24-hour general strike called Thursday to protest Venezuelan President Nicolás Maduro’s plans to rewrite the constitution.

GREECE

Earthquake Kills 2, Leaves Dozens Hurt A powerful earthquake shook the Greek island of Kos early Friday morning, damaging several buildings and the main port, killing at least two people and

causing more than 120 injuries, authorities said.

The 6.5-magnitude quake rattled Turkey’s Aegean coast as well, but Kos was nearest to the epicenter and appeared to be the worst hit, with all of the deaths and injuries reported there. Buildings with damage included the old mosque and a

actively aiding the group as apostates deserving death and another preaching moretargeted violence.

In trying to assess Islamic State’s future after Mosul, terrorism experts and counterterrorism officials look for clues in what happened to al Qaeda after the loss of its Afghan base in 2001 and the killing of Osama bin Laden 10 years later. While these events weakened al Qaeda’s core and reduced its ability to target the West, regional affiliates have flourished.

Niger parliament member Lamido Moumouni Harouna represents a region frequently attacked by Boko Haram.

“The conflict here is a local conflict,” he said. “And the way it will develop will depend on how the local environment develops.”

Saudis Shift Security Duties to New Agency

QATAR

Qatar said hackers in the United Arab Emirates were linked to a cyberattack on its state-run media, an episode that helped spark the Gulf’s worst diplomatic crisis in decades.

Qatar stopped short of blaming the Emirati government for the hacking, which resulted in fake news stories appearing on Qatar’s state-controlled news agency. But it was the first time Qatar tied the false reports to the U.A.E. The allegation points to an escalation of tensions between the Gulf neighbors, complicating mediation efforts led by Secretary of State Rex Tillerson to smooth over the rift between U.S. allies.

A U.A.E. official didn’t respond to a request to comment on the accusations.

The U.A.E., Saudi Arabia, Bahrain and Egypt in June severed diplomatic ties with Qatar, citing its support for Islamists like the Muslim Brotherhood and its covert ties with terror groups like al Qaeda. The four issued a list of demands, which Doha rejected.

—Margherita Stancati

U.S. officials were dissatisfied with the Chinese unwillingness to make specific commitments to reduce the deficit, said trade experts briefed on the talks.

Still, some Western trade economists say Beijing is justified in resisting quantitative targets. That is because trade measures may affect exports and imports in particular sec-

tors, they say, but aren’t generally enough to alter the overall deficit.

China’s embassy said the two sides agreed that reducing the deficit was a “priority” for both nations. But it didn’t offer anything concrete.

When it comes to excess capacity in the steel industry, the Chinese said the two sides agreed to “active and effective measures to jointly address this global issue,” but it didn’t provide specifics.

That may not satisfy the Trump administration, which is debating whether to levy tariffs on steel imports in a bid to force Beijing to meet specific benchmarks for cutting production overcapacity, which is weighing on global steel prices.

Myron Brilliant, executive vice president of the U.S. Chamber of Commerce, said the Chinese pledges fell short.

“We want to see more tangible progress made in a range of structural, regulatory and other concerns,” he said.

NOEL CELIS/AGENCE FRANCE-PRESSE/GETTY IMAGES

BY MEGUMI FUJIKAWA AND YOKO KUBOTA

China Touts Progress in U.S. Talks BRENDAN SMIALOWSKI/AGENCE FRANCE-PRESSE/GETTY IMAGES

Japan Extends Inflation Timetable

14th-century fortress.

Fallen bricks and other damage were seen in Kos’s “old town” area, full of bars and other nighttime entertainment. Hundreds of tourists were spending the rest of the night outdoors.

Rescuers were checking for trapped people inside houses.

—Associated Press

BEIRUT—Saudi Arabia on Thursday announced far-reaching changes to its security apparatus, establishing a new entity in charge of national security and stripping power from the Ministry of Interior.

The new body, called the State Security Directorate, will report directly to King Salman and take over key responsibilities from the Ministry of Interior, including domestic intelligence, special-operation forces and other counterterrorism functions.

The announcement, made in a series of royal decrees, came weeks after a major leadership reshuffle in the kingdom that resulted in the removal of former Crown Prince and Minister of Interior Mohammed bin Nayef from his posts.

He was replaced as crown prince by Mohammed bin Salman, the monarch’s powerful 31-year-old son, who is spearheading an overhaul of the kingdom’s economy and government bureaucracy under a

program known as Vision 2030.

Saudi Arabia is one of America’s most important security allies in the Middle East, and U.S. officials had long viewed Mohammed bin Nayef, known as Saudi Arabia’s counterterrorism czar, as one of Washington’s most trusted partners in the kingdom.

In a show of continuity with his tenure, one of Mohammed bin Nayef’s closest aides, Gen. Abdulaziz al Huwairini, was selected to lead the new security body. He retains his role as head of the domestic intelligence agency, the Mabahith.

A Saudi official said the change would elevate the work of Saudi Arabia’s counterterror forces. Gen. Huwairini is well known to U.S. officials and will report directly to the king, the official said.

“The rationale here is a matter of efficiency,” the official said. “This will be an improvement to our counterterror capabilities.”

—Felicia Schwartz in Washington contributed to this article.

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World-Class CEOs in the Rarest of Company. Each Other.

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John Forsyth Wellmark, Inc.

Peter Lowy Westfield Corporation

Joel Quadracci Quad/Graphics

Nicholas Akins American Electric Power

Eric Foss Aramark Corporation

Elie Maalouf IHG

Thomas Quinlan LSC Communications, Inc.

Keith Allman Masco Corporation

Simon Freakley AlixPartners

William Mansfield MUFG Securities Americas, Inc.

D. Rajkumar Bharat Petroleum Corp Ltd.

Mukesh Ambani Reliance Industries Limited

Adena Friedman Nasdaq, Inc.

Gracia Martore TEGNA, Inc.

Nitin Rakesh Mphasis Ltd.

Carl Armato Novant Health, Inc.

Robert Garrett Hackensack Meridian Health

Michael Massey PetSmart, Inc.

Gina Rinehart Hancock Prospecting Group

Johan Aurik AT Kearney, Inc.

Eli Gelman Amdocs Limited

Timothy Mayopoulos Fannie Mae

Timothy Ring C. R. Bard, Inc.

Ziv Aviram Mobileye

Patrick Gelsinger VMware, Inc.

John McAvoy Con Edison, Inc.

Ginni Rometty IBM

Mitch Barns Nielsen

Mike George QVC

Panu Routila Konecranes Plc

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Eric Gernath SUEZ

Terry McCallister WGL Holdings, Inc. and Washington Gas

George Barrett Cardinal Health, Inc.

Seifi Ghasemi Air Products & Chemicals, Inc.

Dominic Barton McKinsey & Company

Susan Gilchrist Brunswick Group

Patrick Bass thyssenkrupp North America, Inc.

Daniel Glaser Marsh & McLennan Companies

Inga Beale Lloyd’s of London

CP Gurnani Tech Mahindra Limited

Brendan Bechtel Bechtel Corporation

Mauricio Gutierrez NRG Energy, Inc.

Swan Gin Beh Singapore Economic Development Board

Jim Hagedorn The Scotts Miracle-Gro Company

Marc Benioff Salesforce Jeffrey Bewkes Time Warner, Inc. Aneel Bhusri Workday, Inc. Richard Bielen Protective Life Corporation Ståle Bjørnstad Cxense Benjamin Breier Kindred Healthcare, Inc. Vincent Brun Vacheron Constantin Michael Burke AECOM Technology Corporation Gregory Cappelli Apollo Education Group, Inc. Terrence Cavanaugh Erie Insurance Group Anil Chakravarthy Informatica Andrew Collins Sentient Jet Steven Collis AmerisourceBergen Corporation Steven Corwin NewYork-Presbyterian Hospital Francisco D’Souza Cognizant Technology Solutions Bal Das BGD Holdings LLC J. Roberto Delgado Transnational Diversified Group Incorporated Douglas DeVos Amway Corp.

Craig Donohue The Options Clearing Corporation Bilal Eksi Turkish Airlines Hikmet Ersek The Western Union Company Jacques Esculier WABCO Holdings, Inc. Bradley Feldmann Cubic Corporation

John Haley Willis Towers Watson Plc Tom Hayes Tyson Foods, Inc. Gregory Hayes United Technologies Corporation James Hebenstreit Bartlett and Company Edward Heffernan Alliance Data Systems, Inc. Lisa Hook Neustar, Inc. David Hunt PGIM Jo Ann Jenkins AARP Alan Joyce Qantas Airways Ltd. Rana Kapoor Yes Bank Limited Michael Kasbar World Fuel Services Corporation Margaret Keane Synchrony Financial Declan Kelly Teneo Holdings Brian Kesseler Tenneco, Inc. Christopher Klein Fortune Brands Home & Security, Inc. Sarah Krevans Sutter Health Vinod Kumar Tata Communications Ltd. Mary Laschinger Veritiv Corporation Donald Layton Freddie Mac Rich Lesser The Boston Consulting Group William Lewis Dow Jones & Company Robert Livingston Dover Corporation George Logothetis Libra Group James Loree Stanley Black & Decker

Bill McDermott SAP SE Karl McDonnell Strayer Education, Inc. Tom McGee ICSC Jim McGrann VSP Global Thomas McInerney Genworth Financial, Inc. Manoj Menda RMZ Corp.

Fernando Mercé Nestlé Waters, North America Larry Merlo CVS Health Shunichi Miyanaga Mitsubishi Heavy Industries Ltd. Alex Molinaroli Johnson Controls, Inc. Deanna Mulligan The Guardian Life Insurance Company of America Oscar Munoz United Airlines Rupert Murdoch 21st Century Fox and News Corp Eileen Murray Bridgewater Associates Albert Nahmad Watsco, Inc. Pierre Nanterme Accenture Christopher Nassetta Hilton C.L. Max Nikias University of Southern California Indra Nooyi PepsiCo, Inc. Gary Norcross FIS John Noseworthy Mayo Clinic James Park Fitbit Group Health Christina Paxson Brown University Stefano Pessina Walgreens Boot Alliance, Inc. Yitzhak Peterburg Teva Pharmaceutical Industries Ltd. Nicholas Pinchuk Snap-on Incorporated Solange Pinto Ribeiro Neoenergia SA Anne Pramaggiore ComEd Anthony Pratt Visy Industries

Mitchell Rudin Mack-Cali Realty Corporation Gisbert Rühl KlÖckner & Co SE Tim Ryan PricewaterhouseCoopers LLP Michael Sabia Caisse de dépÔt et placement du Québec Faiza Saeed Cravath, Swaine & Moore LLP Takumi Shibata Nikko Asset Management Frederick Smith FedEx Corporation Martin Sorrell WPP plc KR Sridhar Bloom Energy Paula Steiner Health Care Service Corporation Arthur Steinmetz OppenheimerFunds, Inc. Todd Stevens California Resources Corporation Jeff Storey Level 3 Communications, Inc. Motokuni Takaoka airweave Anthony Tersigni Ascension Robert Thomson News Corp Paul Tufano AmeriHealth Caritas Family of Companies NV Tyagarajan Genpact Limited Tien Tzuo Zuora Jing Ulrich JP Morgan Chase & Co C Vijayakumar HCL Technologies Limited Timothy Wallace Trinity Industries, Inc. Mark Weinberger EY Dion Weisler HP, Inc. Elliot Weissbluth HighTower Jim Whitehurst Red Hat Yuanqing Yang Lenovo Harold Yoh Day & Zimmermann Xianming Zhao ZTE Corp.

Serge Pun SPA Myanmar

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Friday, July 21, 2017 | A11

IN DEPTH

WANDA

Big dreams Wanda’s move into theme parks was part of a broader shift into entertainment that began with its building of Chinese cinemas more than a decade ago. In 2012, Wanda bought AMC for $2.6 billion, and through acquisitions became the world’s largest cinema chain.

The company’s other forays into entertainment have yet to

COURT Continued from Page One cafeteria in its Denver courthouse. He avoided signaling his culinary philosophy during confirmation hearings in March. “The Senate overlooked that,” laments retired Justice John Paul Stevens, who first dined in the cafeteria as a law clerk in the 1940s.

The windowless cafeteria, decorated with photos of the Supreme Court, offers a range of items, including hamburgers ($5.70; cheese is 30 cents extra), chicken tenders ($5), sweet potato fries ($2.30) and two soups a day.

This week’s specials included a grilled portobello sandwich ($6.70). Employees get a 20% discount, but a frequent-diner rewards program was discontinued after a trial period last year.

Justice Gorsuch had no appetite for discussing his cafeteria plans, but he’s clearly in the pressure cooker. There are no other eateries within convenient walking distance, making the cafeteria an essential ingredient in staff morale.

Not only do the court’s 400plus employees depend on the facility, cafeteria proceeds subsidize staff enrichment activities like the spring cookout, the Christmas party and Supreme Court night at the Washington Nationals ballpark.

Raising the stakes, he takes

STR /AGENCE FRANCE-PRESSE/GETTY IMAGES

End of the ride

An aerial view of the Wanda theme park in Hefei, China. At least half of the park’s 25 attractions were closed during a January visit. strike gold. The $3.5 billion Wanda paid for Legendary in 2016 was widely seen in Hollywood as too much money.

Thomas Tull, Legendary’s founder and driving force, left a year later.

With its growing middle class, China is expected to surpass the U.S. in theme park revenue in 2019, according to data provider Euromonitor.

Shanghai Disneyland drew more than 11 million visitors in the 12 months beginning in June 2016, its first year, and U.S.-based Universal Parks and Resorts and Six Flags Entertainment Corp. both plan to open parks in China.

Mr. Wang saw theme parks as a way to promote China’s history and legends, people familiar with his thinking said.

This aligned with China’s Communist Party, which seeks a larger role for the country in

Attendance at theme parks built by Wang Jianlin has so far been disappointing. promoting global popular culture. “He fundamentally feels there is so much story and so much depth to the history of China” that can be turned into attractions, a former Wanda executive said.

Yet Mr. Wang’s management team approached the design and operation of its over from a celebrated incumbent. “Justice [Elena] Kagan succeeded in getting a new frozen yogurt machine in the cafeteria,” Chief Justice John Roberts reported to a judicial conference in 2011. “No one at the court can remember any of the prior justices on the committee doing anything.”

Despite lifetimes spent salivating over a seat on the high court, most new justices find themselves unprepared for the challenge of running the cafeteria, which long has been dogged by a reputation for mediocre food and a perennial struggle to turn a profit.

Cafeteria duty is a recipe for “bringing them back down to earth after the excitement of confirmation and appointment,” the chief justice, who typically orders a salad, continued.

Justice Stephen Breyer, the court’s junior member from 1994 to 2006, holds the record for cafeteria service. It is “a very sensitive topic,” he said when asked about lunch during a 2007 appearance on “Wait, Wait…Don’t Tell Me!,” an NPR quiz show. A salad bar expansion notwithstanding, “I’m not sure I was a great success in that position,” Justice Breyer told host Peter Sagal.

Looking back today, “the most difficult challenge was to help promote service that would satisfy many different cafeteria users with many different tastes,” Justice Breyer

theme parks as property developers rather than storytellers, people familiar with the matter said.

A few years ago, Walt Disney World employees in Orlando, Fla., noticed guests measuring bricks on Main Street and taking photos of fanciful shop keyholes, according to a person with knowledge of the incident. When asked, the visitors said they were conducting research for Wanda, this person said.

More recently, staffers at the original Disneyland in Southern California noticed park guests observing how lines were managed at Mr. Toad’s Wild Ride, a popular children’s attraction, this person said.

Approached by park employees, the guests acknowledged they were paid researchers who responded to an online job posting, the person said. Disney employees, the person said, connected the posting to a freelance worker whose visa was associated with Wanda’s Beverly Hills office.

The focus on the technical aspects of Wanda’s theme parks mirrored the company’s approach to building shopping centers and office towers, according to the former Wanda executive. The Wanda Movie Park in Wuhan, this person said, was built in the same bythe-book style that Mr. Wang used for commercial construction, including penalties for missing even the smallest deadlines.

When Mr. Wang visited the Wuhan park for a preview in 2014, employees put carpets over unfinished floors and stapled artificial leaves to trees, one of the people on the project said. Mr. Wang didn’t like about half of the rides, the former executive said, but considered the park acceptable.

The park was aimed at

Hedging Bets Wanda wants to move away from real-estate sales and toward services and entertainment to avoid the cyclical downturns of the property market.

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thrill-seeking young adults, the former executive said, built around motion-simulation rides—dubbed by some in the business as “motion-sickness” rides. But most of the rides didn’t appeal to families with young children, who tend to spend more on food and souvenirs.

“By the end, they resorted to heavy discounting to get people into the park,” the former executive said. “They didn’t have the understanding that the business can’t rely on heavily discounted tickets to get attendance, because this just means there is something fundamentally wrong, and you have to fix what’s fundamentally wrong.”

The $510 million Wuhan park, which isn’t included in the theme-park sale, closed for retooling last summer after 19 months in operation and hasn’t reopened.

A few months after it closed, Mr. Wang met in Los Angeles with Walt Disney Co. Chairman Bob Iger, who in-

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vited him to visit Shanghai Disneyland last fall, according to a person with knowledge of the meeting.

A week after the visit, Mr. Wang appeared more serious about improving his theme parks, the current Wanda executive said.

Mr. Wang approved a 30% increase in the construction budget at one park, and he devoted more resources to design and storytelling across the chain. It was too little too late: The parks continued performing below expectations, according to current and former Wanda executives and documents viewed by the Journal. Nanchang brought in revenue of $26 million for the seven months it was open last year, close to its internal target of $27 million for the period, the documents show.

This year, it has earned $15 million as of mid-July, running behind its 2017 target of $52 million.

The park drew 662,000 visitors in the first six months of

JESS BRAVIN/THE WALL STREET JOURNAL

Continued from Page One Chinese investors and marketing partners to make movies and sell tickets to the world’s second-largest audience, China hasn’t produced any global blockbuster films or characters. Government officials want China to compete with the U.S. as the world’s storyteller.

Mr. Wang’s retreat reflects the challenge of rising to show-business superpower.

China has yet to field companies with the talent to compete with Hollywood’s movie and TV studios. American boxoffice success follows a century of filmmaking, which Disney and Comcast Corp.’s Universal Studios have parlayed into global theme-park empires.

“It takes time for a company to build intellectual property,” said Dennis Speigel, who heads a theme-park consulting firm in the U.S. and has visited two Wanda-owned parks. “You need story, movies, publishing and TV to support it.”

As Disney has shown, theme parks can promote content—with movies based on rides, rides based on movies and popular toys based on all of it. The late Walt Disney built Disneyland in the 1950s with the help of movie studio workers skilled in the arts of storytelling and illusion.

Wanda, one of China’s largest commercial property developers, tried to elbow its way into the business without that background.

Last week at a Wandaowned park in Nanchang, fewer than 3,000 people roamed the property, which can accommodate 40,000 visitors, according to attendance records viewed by The Wall Street Journal.

At Wanda’s theme park in Hefei at least half of its 25 attractions were closed on a visit in January. Guests were told it was too cold to run the large roller coasters. A park hotel was closed for maintenance, even though it had accepted room reservations days earlier.

Souvenir shop shelves were nearly empty. Park visitor Li Chunhong said there was nothing her young daughter wanted to buy, which wasn’t a problem during their visit to Shanghai Disneyland.

“My daughter immediately wanted to buy Minnie Mouse,” Ms. Li said. “She wants to be Minnie.”

2017, records show, well off the pace needed to hit its target of two million for the year.

Under pressure to meet internal targets, the heads of the Nanchang and Hefei theme parks were reprimanded in June for counting tickets presold for 2018 in this year’s revenue, a violation of company rules, according to an internal announcement viewed by the Journal. Wanda declined to make these executives available for comment.

Toppings for frozen yogurt at the Supreme Court cafeteria. Justice Kagan helped get the machine. says. “After 11 years, I left that challenge to my successors.”

When President Ronald Reagan appointed the first woman to the court, Justice Sandra Day O’Connor, in 1981, Chief Justice Warren Burger responded by assigning her to the cafeteria committee.

Each junior justice since has been stuck with the chore, serving alongside a half-dozen rank-and-file court employees to discuss menu items, set prices and air customer complaints.

Unlike the Supreme Court itself, which meets a floor above, the cafeteria committee

operates by consensus, with nary a dissent noted, former members say. In an otherwise hierarchical institution, it represents an oasis of egalitarianism. “We’re all equal when we’re having lunch,” says Justice Samuel Alito, who served from 2006 to 2009.

“I thought it was pretty good, under my supervision,” Justice Alito says of the cafeteria. Official records confirm the committee received “compliments on the shrimp bisque soup and the hummus and broccoli.”

Still, the Alito years also saw disaffection over slow ser-

vice and unhappiness about the removal of pudding parfait. Fellow justices piled on, Justice Alito recalls. One complained there was too much salt in the oatmeal, another said the turkey wrap needed more mayonnaise. He declined to identify the justices involved, invoking the court’s little-known “cafeteria privilege.”

The biggest source of indigestion in those days was the coffee, records say. Justice Alito says he tackled that problem by finding a new vendor.

There were “many compliments on the delicious new coffee,” he says.

In late April, Mr. Wang sat at a wooden conference table on the 25th floor of his Beijing headquarters building, flanked by his top executives.

As the men sipped from tea cups and bottles of water, the idea of selling the theme-park business to Sunac China Holdings Ltd. surfaced, the Wanda executive said. Wanda had taken on significant debt to build the parks, he said, and its stretched balance sheet jeopardized plans to list Wanda’s main property unit on a Chinese stock exchange.

Yet in mid-June, Wanda theme-park chief Andrew Kam, former head of Hong Kong Disneyland, was the keynote speaker at an amusement park trade group conference in Singapore.

He outlined Wanda’s plans to build as many as 20 theme parks across China over the next 15 years, said Mr. Speigel, the theme-park consultant.

“It was a very positive presentation on their growth and plans to literally own the market in China,” said Mr. Speigel, who attended the event along with 400 senior executives from the operations side of companies that included Disney, Universal, SeaWorld and Six Flags.

By the time Wanda’s theme park in Harbin opened two weeks later, a deal to sell the parks to Sunac had been made, the Wanda executive said.

Under the deal announced July 10 and revised Wednesday, Wanda will sell a 91% stake in four existing and nine planned theme parks and tourism projects to Sunac. Wanda, which disclosed $6.7 billion in debt on the parks, will continue to operate them under its brand.

Sunac executives didn’t respond to requests for comment. The company in a statement last week said Wanda’s theme park and tourism projects have potential for real-estate development.

Former Wanda employees say properties are being successfully developed around the theme parks, including apartment buildings and retail space, signaling Sunac’s interest is more likely in development than park revenues.

Sunac’s statement also suggested it harbored its own Hollywood dreams: “The company will also continue to further discuss and cooperate with Dalian Wanda Commercial Properties in other projects, as well as movies.”

Justice Sonia Sotomayor, who took over in 2009, often clashes with Justice Alito on major issues before the court.

Coffee proved no exception.

“I thought it was horrible,” she says. She sought to overturn Justice Alito’s decision, but a taste test among diners sustained his coffee judgment.

“It stayed,” she says.

That was but one frustration of her tenure. To confront chronic service delays, she proposed enlarging the kitchen. The idea went nowhere. “Everybody in the building is deferential to a justice,” she said. “They never say no, but they explain why it can’t be done.”

More heartburn came in 2010, when the Washington Post ran a series reviewing government cafeterias. The House of Representatives came in first, with a grade of A. The Patent and Trademark Office, the Pentagon and the State Department each got a C, while the Agriculture Department and the National Institutes of Health barely passed with D’s.

Then came the Supreme Court. “This food should be unconstitutional,” the paper said, citing a “falling-apart mushy” veggie burger and a salmon rice bowl that “bears no resemblance to any salmon I’ve tasted before.” Grade: F. “I got a note from the chief justice the next day,” Justice Sotomayor says. “It said: ‘You’re fired.’”

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GREATER NEW YORK

Growers puzzle over rules for the industry, but new bill in council aims to provide clarity

When Robert Laing was setting up his indoor herb-growing business in Manhattan last year, it took months to find someone willing to insure his tiny hydroponic operation.

“You say, ‘I’m a farm,’ and they put you over to their farming division and they say, ‘How many acres do you have?’ and you say, ‘300 square feet,’ ” Mr. Laing said.

New York City has the largest urban agriculture system in the country, including community and rooftop gardens and greenhouses, as well as “vertical farms” like Mr. Laing’s company, Farm. One, which cultivates microgreens in windowless rooms aglow with LED lights. But a recent report by the Brooklyn Law School finds new growers are sometimes stymied by confusion over where they fit into city regulations.

A new bill in the New York City Council aims to change that. The measure, introduced Thursday by Councilman Rafael Espinal and Brooklyn Borough President Eric Adams, and assigned to the Land Use Committee, calls for a comprehensive urban agriculture plan

CLAUDIO PAPAPIETRO FOR THE WALL STREET JOURNAL

BY THOMAS MACMILLAN

Robert Laing, right, at his 300-square-foot Manhattan farm, which sells herbs to local restaurants. with updated zoning and building codes and possibly an office of urban agriculture.

“We’re not talking about our mom and dad growing tomatoes in the backyard,” Mr. Adams said. “We’re talking about the potential of having major farming on rooftops to deal with food deserts.…This is the wave of the future.”

New York City has 14,000 acres of unused rooftop space that could feed millions of people if converted to gardens, said Mr. Adams. But rooftop gardens are allowed only in nonresidential areas, and there are restrictions on where pro-

duce can be sold, he said.

Current zoning codes only mention the word “agriculture” a handful of times and are essentially silent on hydroponic operations, according to the Brooklyn Law School report.

Mr. Espinal said a comprehensive food plan could lift restrictions, clarify regulations, and coordinate city efforts to encourage agriculture. It would create jobs, improve access to fresh food and help fight climate change by reducing carbon footprints associated with food transport, he said. “It would be a win, win,

win across the board for the entire city.”

Critics of urban farming point to higher prices associated with small-scale growing and energy-consuming hydroponic cultivation.

Mr. Laing, who supplies rare herbs to Michelin-starred restaurants in the city, said a better legal framework in the city would have helped him get insurance, by providing an official point of reference for confused insurers.

Clearer regulations would also help growers attract investors, said John Rudikoff, head of the Center for Urban

Business Entrepreneurship at Brooklyn Law School. “Venture capital and investment banking are going to remain on the sidelines because there’s no municipal assurance that these uses they might be investing in are permitted,” he said.

Mr. Rudikoff pointed to nearby Newark, which revamped its zoning code to include specific language on urban agriculture and is now home to AeroFarms, one of the country’s biggest indoor farming operations.

“There’s a barrier to entry here,” said Jason Green, cofounder of Edenworks, a Bushwick aquaponic company that raised $3 million in outside investment in the past two years. He said his company has had a difficult time sorting through the various incentive programs available.

Paul Lightfoot, chief executive of greenhouse farm company BrightFarms, said he has looked into setting up shop in cities like New York, Chicago and Washington. “It is devilishly difficult and expensive and slow,” he said.

Mr. Lightfoot said a new comprehensive plan in New York City isn’t likely to attract large-scale growers like BrightFarms, but it is still a good way to encourage smaller businesses that can supply to restaurants. “Brooklyn is filled with artisanal everything and this is going to be that sort of stuff,” he said.

Seeking Relief at Coney Island as Temperatures Hit 94 in Central Park

for most of the region Thursday, with New York Gov. Andrew Cuomo extending hours at the state’s pools, beaches and parks through Friday as a way to encourage people to stay cool.

ConEd reported heavy usage for the day, with a peak load of 12,204 megawatts at 3 p.m., shy of an all-time high set on July 19, 2013.

July temperatures are 1.4 de-

grees above normal for the month, but overall temperatures so far don’t put this July into contention for the hottest on record, a spokeswoman for the weather service said.

Ruben Wills in 2013.

Council Member Guilty of Corruption

BY MARA GAY New York City Councilman Ruben Wills was convicted of public corruption charges on Thursday in Queens County Supreme Court.

Mr. Wills, a Queens Democrat, used a charity to steal about $30,000 in city campaign matching funds and state grant money for personal expenses.

A jury found him guilty of one count of a scheme to defraud, two counts of grand larceny in the third degree and two counts of filing a false instrument in the first degree.

He was acquitted of filing false business records.

Mr. Wills immediately was

‘Ruben Wills stole taxpayer dollars to buy fancy purses and clothes,’ state says.

SPENCER PLATT/GETTY IMAGES

New York’s Central Park topped out at 94 degrees on Thursday to tie with June 13 as the hottest day of 2017, according to the National Weather Service.

A heat advisory was in effect

WILLIAM ALATRISTE/NEW YORK CITY COUNCIL

City Farmers Seek Firmer Ground

More steamy weather is on tap, with temperatures expected to hit the 90s again Friday. Forecasters warned that high humidity could stick around into next week.

—Melanie Grayce West

stripped of his seat on the 51member body upon conviction.

“Ruben Wills’ crimes were a shameful violation of the public trust,” New York State Attorney General Eric Schneiderman said in a statement. “Ruben Wills stole taxpayer dollars to buy fancy purses and clothes for himself and his friends.

New Yorkers deserved better.”

Kevin O’Donnell, an attorney for Mr. Wills, called the verdict, “devastating.” He said Mr. Wills planned to appeal.

“We are doing that right away,” he said.

Mr. Wills funneled thousands of dollars through a shell company and later, using a relative, to NY 4 Life, a charity he controlled, prosecutors said. His purchases included a $750 Louis Vuitton handbag, they said.

Mr. Wills could receive up to seven years in prison when sentenced on Aug. 10.

City Council Speaker Melissa Mark-Viverito said Mr. Wills, who has served since 2010, is unfit for office.

“Ruben Wills betrayed the trust of all New Yorkers when he abused his position in the state senate to steal thousands of dollars from the hardworking taxpayers of New York for his own selfish gain,” she said in an emailed statement.

Toss Textbooks Buffalo Joint Wings Its Way to NYC Students For Free Online Materials New York City could finally be getting a true taste of Buffalo—the city, that is.

Anchor Bar, the Buffalo, N.Y., dining and drinking spot that claims to have created the Buffalo wing, is close to finalizing a deal to open its first location in the Big Apple, said Mark Dempsey, a vice president with the company.

The 4,000-square-foot, 200seat restaurant is slated to open in Midtown Manhattan at 327 West 57th St. in the coming months, Mr. Dempsey said.

The restaurant would be run by a franchisee, Carlos Rosario, and startup costs would be about $500,000, he said.

The move into New York City, Mr. Dempsey said, is a proud moment for Anchor Bar, which opened its flagship location in Buffalo in 1935. “We’re very excited,” he said.

DNAinfo, a local news site, earlier reported the company’s plan.

In recent years, the company has opened restaurants in other upstate New York locations, in addition to cities ranging from Richmond, Va., to San Antonio.

As for Anchor Bar’s Buffalo wings, they were something of a happy accident, Mr. Dempsey said. When patrons visited the original location one night in 1964 and asked

for something different to eat, proprietor Teressa Bellissimo came upon some chicken wings and fried and flavored them with hot sauce.

And so, a legendary—and spicy—dish was born.

Anchor Bar may claim to be the first name in Buffalo wings, but it now competes in a crowded field. New York City already has eight locations of

DON HEUPEL/ASSOCIATED PRESS

BY CHARLES PASSY

Anchor Bar claims to have invented Buffalo wings in 1964.

Buffalo Wild Wings, a national chain. Countless independent restaurants also serve the wings in numerous varieties.

Moreover, there is growing interest in Korean-style wings, which some fowl enthusiasts say have a more appealing texture because they are doublefried for extra crunchiness.

“Once you eat Korean wings, you can’t go back to the Buffalo wing,” said Mihae Cho, owner of Roosterspin, a New Jersey restaurant with two locations that specializes in the dish. Ms. Cho said she plans to open more locations in the coming years to meet demand.

Still, Anchor does have a “good back story,” said Michael Whiteman, president of Baum + Whiteman, a New York-based restaurant-consulting firm. And given the popularity of wings, once a throwaway part of the chicken, the competition issue might be moot. “There’s generally room for one more of everything,” Mr. Whiteman noted.

BY LESLIE BRODY The City University of New York predicts that ditching more textbooks in favor of free online materials will save 50,000 students more than $4.5 million this coming year in book fees.

Like many schools nationwide in recent years, CUNY and the State University of New York have started replacing some required textbooks with free digital options. That effort got a boost in April when the state allotted $4 million to each institution to speed up the change.

So-called open educational resources can be downloaded, edited and shared under an intellectual-property license that allows their use at no cost.

Such materials are “outstanding tools,” said Marc Cohen, the 22-year-old president of the Student Assembly at SUNY. He applauded the shift as “life-changing,” saying ev-

ery student has been forced to buy an “insanely expensive textbook” at some point. One organic chemistry tome, for example, costs $364.

While supporters of free materials say they give teachers more leeway to be creative, skeptics caution that resources lack quality or coherence, and adapting them can be time-consuming.

At CUNY, where almost half of the student body comes from households earning less than $20,000, officials said the cost of a student’s books can total as much as $1,200 a year.

The officials said faculty members were converting 350 popular courses to free digital materials for the fall and were being trained on their use. These resources will be shared publicly.

The infusion of funding for this project is “a real shot in the arm for efforts to make college attendance even more affordable,” said CUNY Chancellor James Milliken.

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Friday, July 21, 2017 | A11B

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GREATER NEW YORK “

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TIME OUT NY CRITIC’S PICK!

“Tenderly poignant.

Mr. Foote would have delighted in this lovely revival.”

TERRY TEACHOUT WALL STREET JOURNAL

CHERRY LANE THEATRE and LA FEMME THEATRE PRODUCTIONS CAREY WAGNER FOR THE WALL STREET JOURNAL

present

Dave Ortiz, one of the New York partners of a vodka distillery, pictured on the roof of the operation.

Distillery Taps Manhattan

21

Number of distilleries operating in New York City

toos. He wore patent leather loafers with no socks. We thought we were getting punked, but we went with it,” said Mr. Ortiz.

Mr. Wise said his employers were visiting from Sweden the following day and told Messrs. Carney and Ortiz they would meet Åsa Caap, chief executive of OUR/Vodka. At the time, the company’s vodka was being distilled and sold locally in Berlin. It has since rolled out to London, Amsterdam, Los Angeles and Detroit.

“I was told to recruit guys to open and run a distillery in New York City and they’d get

a piece of the business, but they needed to be authentic New Yorkers and creative problem solvers who were literally willing to carry 36 cases of vodka,” Mr. Wise said.

Mr. Wise said he had a tough time locating operators for the new distillery. At the outset, the project was so scrappy that he was using a Gmail account, and his emails were being ignored. In New York alone, 10 to 12 people failed to reply to him before he found Messrs. Ortiz and Carney.

When the two entrepreneurs met with Ms. Caap in 2013, there was one final hurdle to be overcome. “I was nervous to tell them I don’t drink,” said Mr. Ortiz. He added, “They came right back with ‘We love your honesty.

That’s so New York!’ ” The pair went to work scouting locations with Mr. Wise in January 2014, and closed the skate shop the following year.

Pernod-Ricard invested well over $2 million to open the 2,386-square-feet distillery/bar with a 2,697-squarefoot basement on 26th Street in Chelsea, according to Mr. Ortiz.

Pernod-Ricard has committed to covering operating expenses over the next three years when the distillery is expected to begin turning a profit. It expects to sell 3,000 9-liter cases in the first year.

OUR/New York’s 375-millileter bottles will be sold across New York state in liquor stores, bars, and dutyfree shops.

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One of the biggest liquor companies in the world plans to begin distilling vodka in Manhattan in October.

OUR/Vodka, a FOOD & unit of Pernod CULTURE Ricard, is building a distillery in Chelsea that will sell a wheat-based vodka.

There are 21 distilleries currently operating in New York City, with 18 in Brooklyn, two in the Bronx, and one in Queens, according to the New York State Liquor Authority. OUR/Vodka’s OUR/New York operation would be the only one in Manhattan.

The majority of ingredients will be sourced from New York state farms, the New York partners said. That will allow the business to operate lawfully with a farm distillery license, which requires 75% of ingredients to be sourced from the state.

License holders are allowed to distill up to 75,000 gallons of spirits a year, host on-site tastings, sell at farmers markets, and open off-site locations.

OUR/Vodka has spent years arranging everything, including signing up a couple of New York entrepreneurs to run the distillery. The saga began in October 2013, when the phone rang at Dave’s Wear House, a skate shop on Baxter Street in lower Manhattan.

The caller identified himself as a talent scout for a spirits company.

“We thought the guy wanted us to design a T-shirt.

Maybe we’d get a few free

bottles,” said Kevin Carney, 47 years old, co-owner of the Skate Shop, along with Dave Ortiz, 47, a former graffiti artist.

The scout visited their shop the following day and introduced himself as Thurman Wise, but he didn’t reveal that he was working on behalf of OUR/Vodka. Mr. Carney suggested he hire them to throw a party. Mr. Wise, 32, agreed to consider it and offered that maybe they could also run the distillery.

“Our friends are really into elaborate practical jokes and this guy had hair down to his shoulders. His arms, hands and neck are covered in tat-

In

BY MICHAEL ROVNER

Directed by

AUSTIN PENDLETON

G . $ 6 4.

9

GREATER NEW YORK WATCH EDUCATION

Free-College Program Has 75,000 Applicants About 75,000 people have applied for New York state’s new tuition-free college program, officials said Thursday, a day before the Friday deadline.

After other student aid has been applied, an Excelsior Scholarship covers the balance of state college or university tuition for full-time, in-state students from families earning $100,000 or less.

After graduation, students must remain in New York for as many years as they received the benefit. If not, they would have to repay the money.

—Associated Press

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—Associated Press

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A12 | Friday, July 21, 2017

THE WALL STREET JOURNAL.

LIFE&ARTS

Cara Delevingne, right, and Dane DeHaan, below, in Luc Besson’s sci-fi spectacle

FILM REVIEW | By Joe Morgenstern

hitched to such dull stars.

The plot, set in the 28th century, concerns a mysterious radioactive force that threatens the existence of an extragalactic metropolis called Alpha. The cast includes Herbie Hancock—yes, that Herbie Hancock—as the Minister of Defense; Clive Owen as Arun Filitt, an Alpha commander; Ethan Hawke as Jolly, a grotesque pimp; and Rihanna, who makes a stunning spectacle of herself as a shape-shifting dancer named Bubble.

In the interest of full disclosure, I didn’t see “Valerian” under ideal circumstances.

The 3-D system went out of whack before my screening, so the film was shown in 2-D. Maybe that extra dimension would have enhanced the acting along with the

physical production, which was designed

by Hugues Tissandier and photographed by the superb Thierry Arbogast. (Alexandre Desplat wrote the elegant score.) I doubt it, though. Technology can’t generate verve—at least not yet—or the sort of chemistry that’s entirely absent in the

TELEVISION REVIEW Kurt Rhoads and Sean McNall in Moritz von Stuelpnagel’s production of ‘Twelfth Night’

By John Anderson

T. CHARLES ERICKSON

Unvarnished Stories Of the Lost

THEATER REVIEW | By Terry Teachout

SILLY SUCCOR FOR MODERN MALAISE Garrison, N.Y. WITH TWO Broadway successes, “Hand to God” and “Present Laughter,” under his belt, Moritz von Stuelpnagel is now looking like the most talented director of stage comedy to come along since John Rando. So it’s happy news that he’s upped his personal ante by staging “Twelfth Night” for the Hudson Valley Shakespeare Festival. It is, after all, a big leap from Noël Coward to Shakespearean comedy, one that many similarly talented directors never attempt. Funny though “Twelfth Night” is, most of the laughs don’t come of their own accord: They need careful, knowing tending in order to explode on schedule. But Mr. Von Stuelpnagel knows his comic stuff, and he’s given us a show that’s every bit as enjoyable as its predecessors.

Unlike most modern-day Shakespeare directors, Mr. Von Stuelpnagel has chosen not to overlay his “Twelfth Night” with a high concept: It’s a colorfully stylized semi-modern-dress staging, but otherwise the show keeps to the center of the theatrical road.

The cast is mostly young, and the actors themselves perform Palmer Hefferan’s incidental music in a cheerfully rough-andready manner. The results are as festive as their setting, a huge tent pitched on the great lawn of the Boscobel House and Gardens, a handsomely restored 1808 estate situated on a wooded bluff perched high above the Hudson River. Even when the

weather is less than inviting, I can’t think of a prettier place to see an outdoor show.

Hudson Valley always has fine clowns on tap, and Kurt Rhoads and Sean McNall, who play Toby Belch and Andrew Aguecheek, set the tone for the show, with the emphasis placed squarely on broad, bawdy comedy. (Without getting too graphic for the readers of a family paper, suffice it to say that Sir Toby appears to be suffering from a fairly severe case of prostate trouble.)

Anyone seeking temporary surcease from the rigors of the present moment will find it in abundance here.

The only thing missing is the hard nub of dramatic seriousness that issues from the climactic humiliation of Malvolio. Stephen Paul Johnson, dressed in the pompous manner of an 18th-century lawyer, is a bit too quick to shift into full-tilt comic mode when he receives the forged letter intended to fool him into thinking that Olivia (Krystel Lucas), his employer, has fallen in love with him. It strikes me that Mr. Von Stuelpnagel has in this case erred on the side of broadness, in much the same way that he erred by treating Roland Maule as a figure of tooobvious buffoonery in his production of “Present Laughter.” Malvolio is a grotesque, not a clown, and “Twelfth Night,” at least for me, works best when he’s played perfectly, even rigidly straight, succumbing to Please see THEATER page A13

pairing of these attractive performers. Valerian is supposed to be roguish and Laureline is supposed to be spunky, but as I watched them my thoughts drifted back four decades to the silliness of “Bugsy Malone” and fusillades of custard from splurge guns.

is, but it has an intractable underclass, is scarred by unemployment and poverty and—like many similarly afflicted places in America—is plagued by a heroin epidemic born of opiate abuse. All the women who’ve been victimized in Chillicothe have been involved in the drug trade, and prostitution, and most got into heroin through a reliance on pain medication. They all have children.

And mourning families. And, as viewers will learn, the same circle of acquaintances.

What have the police made of all this?

Not much, as Mr. Berlinger very diplomatically points out, as he goes about his own investigation, assisted by forensic intelligence analyst Angela Clemente (who appeared in Mr. Berlinger’s 2014 “Whitey: United States of America v. James J. Bulger). The two are joined a bit later by former FBI profiler Steve Bongardt, and the trio makes efforts to figure out why a city of about 22,000 people could have so many unsolved deaths and disappearances in only an 18-month period, beginning in 2014..

One death, that of Shasta Himelrick, has been ruled a suicide, but why, Ms. Clemente asks very sensibly, would a strong swimmer

FROM JACK THE RIPPER on down through the dank, dismal history of serial murder, the perpetrators always seem to have their macabre signatures and twisted proclivities while their victims seem sadly the same: anonymous members of an underclass; underprivileged people who’ll go largely unmissed. Ordinarily, the dead are women murdered by men. Often enough, they’re prostitutes. (Aileen Wuornos, a notable exception to the gender rule, was a prostitute.) In our time, the still-at-large Gilgo Beach Killer may have left as many as 17 women dead on Long Island. Who besides their mothers can name one?

It’s a credit to “Gone: The Forgotten Women of Ohio,” directed by the Emmy-winning, Oscar-nominated Joe Berlinger, that the women of the title are afforded actual identities.

They are memorable, in their way—unseen characRuth Sayre, Angela Clemente, Joe Berlinger, Steve Bongardt and ters in the drama despite Connie Sayre the unfortunate commonalities that link them all tothrow herself off a bridge into freezing wagether. One can hope that all those interter at the end of December? (Especially, she connecting facts will lead to a solution over implies, when there are so many drugs the next eight weeks, though after watcharound to make the task more pleasant.) ing the first three episodes—each of which One victim is shot; several are discovered was more intense that the last—this viewer in water. But as the team admits to itself, wasn’t even clear that a serial killer is at nothing suggests the profile of a psychowork. Not a human one, at any rate: “The path. When the news hits that a real serial real killer here,” says public health nurse murderer, Neal Falls, has been shot and Lisa Roberts, “is probably opiates.”

One suspects Mr. Berlinger knew as much. killed by a woman he’s attacked in nearby West Virginia, his methodology is examA key figure in the documentary renaissance ined, and what’s made clear to the viewer of the 1990s, the New York-based director is that the Chillicothe events are somespent the better part of two decades with where outside the criminology textbooks. filmmaking partner Bruce Sinofsky on the It is perhaps predictable that the fami“Paradise Lost” trilogy, which helped resolve lies of the victims would complain of police the scandalous and allegedly “satanic” West incompetence and worse, but there are also Memphis Three murder case in evangelical signs that the efforts of the various investiArkansas. (Mr. Sinofsky died in 2015.) In gators have lacked a certain, shall we say, many ways, “Gone” provides him familiar urgency. “I can’t know everything,” says territory: Chillicothe is referred to as “quintPlease see GONE page A13 essential small-town America,” and maybe it

SAM BROADWIN

LUC BESSON’S “Valerian and the City of a Thousand Planets” takes us beyond binge watching into the realm of binge seeing. A single showing of the film can induce intoxication from a surfeit of gorgeous images. Outlandish creatures fill the screen, shifting shapes as they go. An aurora shimmers in the daytime sky of an alien world.

Exotic settings materialize in a delirium of decoration. Too-muchness is an aesthetic principle in this sci-fi spectacle, based on a French comic-book series launched in the 1960s, and that’s part of the eye-numbing fun. But the two young crime fighters at the center of the story, Maj. Valerian (Dane DeHaan) and his partner, Sgt. Laureline (Cara Delevingne), are no fun at all. Seldom has such a glittering wagon been

FROM TOP: STX ENTERTAINMENT/EUROPACORP; LOU FAULON

For Our Eyes Only

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Friday, July 21, 2017 | A13

LIFE & ARTS CULTURAL COMMENTARY

Time to Sing Librettists’ Praises texts. That’s when revisions begin.

Composers may request more words ending in vowel sounds, easier to sing in high ranges. Or identify a need for another aria. After David T. Little began writing the score for “Dog Days,” he asked Mr. Vavrek for a quiet moment to offer musical contrast. A poignant aria for the character of Mother, “My Legs Won’t Walk Me,” was born.

Mr. Campbell credits Mr. Bates with helping him find the heart of the “Jobs” opera when the composer asked him to further develop the character of Laurene Powell Jobs, Jobs’s wife.

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Continued from page A12 Chillicothe Sgt. Lucas Hansen, and no he can’t. Individually, the officers seem forthcoming: Chillicothe Detective Bud Lytle, for instance, is more than happy to share information and appear on camera with Mr. Berlinger, but he’s never really pressed (not during episodes 1-3, at least) about the families’ accusations.

As whodunits go, “Gone” is not “Law & Order.” It’s untidy, and its people are as erratic as its facts. Explaining why he’s undertaking a task at which the police have thus far failed, Mr. Berlinger says, “a camera can open doors.” That’s true. But a camera can also change behavior, and a viewer can’t help wondering how much the characters in the Chillicothe drama are influenced by the presence of Mr. Berlinger and his team, how much is natural and unguarded and how much is pure performance. The Chillicothe case has attracted cameras before, and the sense is that the clock was ticking. Given the choice, Mr. Berlinger would likely have spent more time among the people there, and gotten them more at ease.

THEATER Continued from page A12 unrequited love and exploding with justifiable rage at play’s end when he discovers that Sirs Andrew and Toby—who are, lest we forget, his social superiors, vulgar and loutish though they are— have made heartless sport of him.

This is, however, both a matter of taste and a counsel of per-

Gone: The Forgotten Women of Ohio Begins Saturday, 9 p.m., Spike

fection: “Twelfth Night” is above all things a buoyantly light comedy, and Mr. Von Stuelpnagel and his excellent cast never fail to make you smile. I rejoice that Davis McCallum, who has racked up an impressive track record since becoming Hudson Valley’s artistic director in 2015, has dared to entrust a Shakespeare play to an artist not previously known for his stagings of the classics. It’s a gamble that has paid off, and one that I hope will be repeated in seasons to come.

Twelfth Night Hudson Valley Shakespeare Festival, Boscobel House and Gardens, Garrison, N.Y. ($21.75-$64.75), 845-265-9575, closes Aug. 26

Kerry Warren and David Ryan Smith

Mr. Teachout is the Journal’s drama critic. “Billy and Me,” his new play, opens at Palm Beach Dramaworks on Dec. 8. Write to him at tteachout@wsj.com.

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Class is an unavoidable issue here and, to his credit, Mr. Berlinger doesn’t try to avoid it.

“Gone” travels between the earthy environs of Chillicothe and Mr. Berlinger’s home base, the stylish offices of Radical Media in New York. The contrast isn’t exactly jarring, but it’s impossible to ignore. “Coming to this region has been an eyeopener for me,” Mr. Berlinger tells one of the locals, and he’s not talking only about the opioid crisis and its insidious side effects. He’s talking about the way of life, the culture. It’s an honest thing to say. It’s an uncomfortable way to feel.

The debut episode of “Gone: The Forgotten Women of Ohio” is, like many an opening chapter of anything, less electrifying than what is to follow, since it needs to establish people, dates, stories and characters. Mr. Berlinger is not the most confident narrator, and he takes some getting used to. But by episode 2 “Gone” is out of the gate and the viewer, we suspect, fully engaged. I, for one, will be tuning in for episodes 4-8 because “Gone” is that genuinely rare thing on TV: unpredictable.

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.

60s

Angela Robinson and Tommy Lee in ‘Gone: The Forgotten Women of Ohio’

T. CHARLES ERICKSON

WITHOUT COMPOSERS, there would be no operas—no arias to linger in memory, no gripping orchestral accompaniment. But without the librettist, who provides the dramatic structure, scenarios, characters, and texts for the singers, there would be nothing to inspire those who furnish the music, sets, costumes and theatrical elements that engage our attention.

Although the status of librettists has waxed and waned over the centuries, it’s time to recognize their importance again, particularly in the creation of contemporary opera. The resurgence of storytelling, along with the heightened media attention accorded premieres, has helped fuel the commissioning of a plethora of new operas in the U.S. in recent years. And the seemingly insatiable appetite of presenters for “celebrity” operas, as well as adaptations of well-known films and books, has put leading librettists like Mark Campbell, Gene Scheer and Royce Vavrek in great demand. The latest example is “The (R)evolution of Steve Jobs” by composer Mason Bates and Mr. Campbell, which receives its world premiere at Santa Fe Opera on Saturday.

Edward Parks as the title character of ‘The (R)evolution of Steve Jobs,’ by composer Experts like dramaturge Mason Bates and librettist Mark Campbell, opening at Santa Fe Opera on Saturday Cori Ellison, a frequent consultant on new opera productions, say that today’s operas Whatever its style, the libretto and other promotional material for are less formulaic, more labor-inshould ignite the composer’s imagworld premieres. And on opening tensive and more collaborative in ination. Missy Mazzoli, who has night, they usually are invited ontheir development. All of which collaborated with Mr. Vavrek on stage to take a bow with the cast, strengthens the view of librettists three operas, including “Breaking composer and artistic team. But unas co-creators rather than servants the Waves,” says that when she like Broadway musicals, where comof the music. reads his texts, she can “hear” poser, lyricist and book writer typiA case in point: Mr. Campbell’s many things about the form, harcally share equally in royalties, original libretto for the “Steve Jobs” mony and density of the music opera composers receive the bulk of opera employs a nonlinear approach she’ll compose. Mr. Bates, whose the remuneration because of the and is based on extensive research orchestral score for the “Jobs” oplonger time needed to write and orinto the Apple co-founder’s life, era includes guitar, saxophones, chestrate their work. And when an achievements and practice of Soto Tibetan bells and electronics, was opera wins an award, the composer Zen Buddhism. “How do you convey particularly energized by a line in normally gets the cash. a complicated life in a 75-minute Mr. Campbell’s libretto that reads, Awards organizations should reopera?” asks Mr. Campbell. “One ”These machines should be somethink this policy, given the symbiway is to focus on the emotional thing we play.” He says it elicited otic relationship between words notes you want to hit.” music that he might not have othand music. And opera presenters The best librettists understand erwise written. should give librettists of past and the way singers phrase, music flows The widespread use of supertipresent alike their due. Why not and audiences listen. Mr. Campbell, tles, which shine laser-like scrutiny “The Marriage of Figaro” by Mozart whose previous libretto credits inon clunky or implausible texts, has and Da Ponte? After all, it was their clude “The Shining” by Paul made it abundantly clear that the creative interplay that turned a bitMoravec and the Pulitzer Prize-win- finest operas are ideal marriages of ing, five-hour political satire by ning “Silent Night” by Kevin Puts, effective text and beautiful music, Beaumarchais into a compelling opsays the human ear can absorb only from Hugo von Hofmannsthal’s eloeratic masterpiece. so many words when a line is sung. quent lyrics for the aging MarschalMs. Jepson writes about classical Once the libretto is approved, lin in Richard Strauss’s “Der Rosenmusic for the Journal and is composers begin writing the music kavalier” to Montagu Slater’s in earnest, bringing the story to life evocative libretto for Benjamin Brit- president of the Music Critics Association of North America. and underlining its expressive subten’s “Peter Grimes.”

ROBERT RICHMAN

Consider, by contrast, “Doctor Atomic” by John Adams, whose tedious libretto by Peter Sellars is laden with documentary excerpts and scientific jargon. The highlight of the opera is Mr. Sellars’s insertion of the magnificent aria “Batter My Heart.” Its chilling words, with their reference to the biblical Trinity, were penned by the Jacobean poet John Donne. Apt text wedded to musical genius galvanized what had been a trying first act.

Today, the contributions of librettists are beginning to be acknowledged more widely. Their names appear more prominently in posters

KEN HOWARD/SANTA FE OPERA

BY BARBARA JEPSON

P A R T A G E M E A T O S H O R P O K E A J A R Y O Y O

B L A N C

H U N A N B E L L E N C H J EWE L I K E A H O S E R U N T AM E L A U D P L A N H I M P S L O U T A L I T O A N N E T Y S O N Y E A R

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A14 | Friday, July 21, 2017

SPORTS GOLF

OPEN MIGHT GET WET AND WILD

Jordan Spieth

A French policeman walks near team cars as part of security measures during the Tour de France.

TOUR DE FRANCE

A Chain Won’t Keep These Bikes Safe For pro cycling teams, robberies are one of the biggest—and most expensive—risks in the sport

BY JOSHUA ROBINSON Laissac-Sévérac-l’Église, France EVERY MECHANIC at the Tour de France has the same recurring nightmare. They wake up before a stage, head to the hotel parking lot and find the team truck completely devoid of bicycles.

Occasionally, the nightmare comes true. For professional teams that spend more than 200 days a year on the road, from Argentina to Japan to the Tour de France, robberies are one of the biggest—and most expensive—risks in the sport.

“There are a few times a year that it happens,” said Tristan Hoffman, a director with the BahrainMerida team that had a set of bikes pilfered in June. “Everything you need for the race is in [the truck] and that’s expensive stuff.”

If you ever worry that you forgot to lock the front wheel while chaining up your commuter bike, try fretting over a whole team’s complement of high-end road machines, all locked in a brightly branded truck outside a motel.

(Cycling teams often stay in motels, because they require so much room for all their vehicles.)

“If three, four teams are staying there, it’s not hundreds of thousands, but millions of euros in one parking [lot],” said Arne Houtekier, an official with the Belgian Lotto-Soudal team.

In the past season alone, at least

two professional teams were burgled at races in the Netherlands and two more suffered attempted break-ins.

So, this July, the Tour de France is taking no chances. Its status as the highest-profile bike race on the planet, combined with the broader security threat in France these days, prompted the Tour to assign a security guard to patrol every parking lot at every team hotel, all night, for three weeks.

Veteran sporting directors said they had never seen that at any Grand Tour.

Each team travels to the Tour with, at minimum, a bus decked out with lounge seats and a shower to transport the riders; a fleet of team cars; moving vans; and a kitchen.

Multiply that by 22 teams and you begin to appreciate the size of the Tour’s traveling circus. All told, race officials said they accredited 660 vehicles for the teams alone.

But none carry more precious cargo than each team’s mechanics’ truck, which serves as a rolling, pop-up workshop. Lotto-Soudal said it hauled 45 bikes to the Tour for its nine-man team, plus that many sets of spare tires and enough extra parts to service all of them.

After more than a century of pro cycling history, the best precaution teams can take to keep it all safe is primitive: locking the truck and parking another team car across the back to block the door.

“You just park them as close to-

gether as possible,” CannondaleDrapac coach Andreas Klier said.

The method isn’t flawless. And when it fails, the result is instant chaos.

“You need to restore the stuff, you need to find new bikes. And then the mechanics have to build the new bikes. It’s a lot of extra work,” Hoffman said.

And if it wasn’t possible to ship in a load of new bikes? “I would call all the other teams and use bikes from them,” he said. “What can you do? Otherwise you stop.”

Team Sky, despite being the richest outfit in the sport, was prepared to do just that in early 2014 when thieves made off with 16 of Sky’s Pinarello bikes at the Tour du Haut Var in France. Only two were left behind for the eight-man team. “We presume they only left those because they’d run out of space in whatever transport they were using,” one Sky coach said at the time.

Not all thieves require elaborate truck heists. Plenty of professional bicycles are lifted just like the ones parked on a city street in crimes of opportunity.

Lotto-Soudal mechanic Yannick Verstraete remembered one bold thief making off with one of the team’s bikes right before the start of the Milan-San Remo race five or six years ago when the rider wasn’t looking.

Still, that wasn’t as brazen as the apparent attempted theft of

then-Cannondale-Garmin rider Ben King’s bicycle during the 2015 Vuelta a Espana. King was looking for his missing bike computer after a crash when a shirtless spectator with a cigarette in his mouth popped out of the crowd and tried to get in the saddle.

“Don’t know if he was ‘helping’ or taking off as I was searching people for my stolen Garmin [computer],” King wrote on Twitter.

“What a cluster!”

As for what happens to stolen professional-caliber bikes, it turns out the market is somewhat limited. Which came as a relief to the Polish team CCC Sprandi Polkowice when all of their bikes and spare wheels disappeared ahead of the Amstel Gold Race in the Netherlands last April. CCC immediately had its base back home dispatch a new set of bikes, but before they arrived, the original race rigs reappeared.

“Easter miracle!” the team tweeted less than 24 hours after the robbery. “The stolen bikes were found in an abandoned car!

We beat the burglars!”

At the Tour, directors are hoping they won’t need such luck.

Creative parking jobs and the odd security guard mean they can sleep easier than usual.

“It will maybe not change the world,” Hoffman said, “but it’s a good feeling that he keeps an eye on our vehicles.”

enviable figure whom most of us will never compete with athletically, financially or stylistically. He possesses a superhuman level of grace and elegance. He basically plays tennis in a dinner jacket. It’s like someone merged Rod Laver with James Bond.

I’ll never resemble Federer on the court. I play and look like someone merged a walrus with a beanbag chair.

But I think I can rest like Federer.

And so can you, my friends. I want you to go into the boss’s office tomorrow, and let him or her know: You’re taking some time off. You need to recharge. You

need to Federer it.

YOU: Hey, I’m taking the rest of July and all of August off. I need to find my Federer.

BOSS: What? Did you drink at lunch?

If the boss is smart, the company will let you shut it down immediately. It’s good for you, and it’s good for them. If they don’t, have your boss email me at jason.gay@wsj.com. I’ll write them a note and explain the situation.

I’ll see you at the beach, and remember: We’re not taking time off.

We’re strategically resting. You and I are just like Roger Federer.

Now pass the margaritas.

TENNIS | By Jason Gay

WE NEED TO RELAX LIKE ROGER FEDERER Folks, I have some news: I’ve decided to mail it in for the rest of the summer.

I know what you’re thinking: Buddy, you’re a newspaper columnist. Isn’t mailing it in basically the job?

And it’s a fair point. But this isn’t one of those lazy, feet-on-desk, all-day-on-Facebook, margaritas-before-noon type of at-work holidays, though those are super fun.

This is a very wise, targeted, strategic form of rest. Greatness rest. Championship rest.

Federer rest.

This past Sunday, Roger Federer won his eighth Wimbledon men’s singles title—his first in five years.

Weeks away from turning a sportsancient 36, the Swiss legend is playing some of the best tennis of his life, and a big reason appears to be rest. As the Journal’s Matthew Futterman has elaborated upon, an injured and exhausted Federer took six months off at the end of 2016, only to show up this January in Melbourne fresh as a daisy, and win the Australian Open.

Then Federer turned right around after Oz and skipped the entire clay court season and the French Open—but returned for Wimbledon and rolled to another Slam title.

“I’ve got to take more time off,”

Federer said when it was done. “I’ll be gone again for the next six months if it keeps working out this [fantastically] when I come back.”

The sports science appears increasingly clear: rest may be nature’s finest performance-enhancing drug, restorative both physically and mentally. Smart teams are routinely resting key players in the NBA. (The influential San Antonio Spurs basically double as a Canyon Ranch during the regular season.)

You can’t tell me a four-game suspension to begin 2016 wasn’t a reason a 39-year-old Tom Brady looked so sharp in February’s Super Bowl. Cycling giant Kristin Armstrong has full on stopped and retired twice, only to turn around and win Olympic gold medals, her most recent last year at 42.

Sports are catching up to what workplace productivity experts have known for ages: time off is good for everybody. Rested employees are consistently better employees, with higher performances and morale.

Non-rested employees are...a grumpy disaster waiting to happen.

“Americans seem to believe that logging more hours leads to increased output, but respite deprivation can actually increase mistakes and workplace animosity,” then-University of Michigan nursing school Dean Kathleen Potempa wrote in

Roger Federer takes a break during a training session at Wimbledon.

PETER KLAUNZER/EUROPEAN PRESSPHOTO AGENCY

ALASTAIR GRANT/ASSOCIATED PRESS

SOUTHPORT, England—Few ever remember the opening round of a golf tournament, especially an event as supposedly august as the British Open. Here, the changeable weather has a way of wiping out any opening day histrionics. Just two winners of the Claret Jug the past 40 years have led wire-to-wire.

It was tempting, however, to glance at the leaderboard on Thursday, especially if you like seeing Americans leading Great Britain’s championship, as Jordan Spieth, Brooks Koepka and Matt Kuchar, put up five-under 65s to set the pace.

Spieth had a bit of wild ride around Birkdale, hitting only five of 14 fairways but getting to all but three greens in regulation, and on one of those misses he was right on the fringe. He stayed relaxed and positive throughout, far more so than early in his recent majors. Coming to an errant tee shot on the wrong side of the ropes on 16, he asked the crowd, “Did I hit anyone or are we good?”

Spieth said he has been eating better, aside from the occasional burger and beer, and he has been a little more focused on his fitness work at the gym. Swimmer Michael Phelps has become a friend of late and given him advice on competing.

Will it matter? Friday afternoon’s projected storm may have more to say about Spieth’s destiny than Phelps’s words of wisdom.

Spieth tees off at 2:48 p.m.

Koepka, playing in his first competition since winning last month’s U.S. Open, holed out from a greenside bunker on 17 for an eagle to draw even with Spieth. Koepka won the U.S. Open on June 18. He didn’t play another practice round of golf until after July 4, and that was it before he got to Royal Birkdale. “It’s more mental with me, being mentally re-charged,” he said.

With the wind dying and the sun shining in the afternoon, Kuchar seared the front nine, going out in 29 to get to 5-under.

JEAN-PAUL PELISSIER/REUTERS

BY MATTHEW FUTTERMAN

the Journal a couple of years back.

Yes, everyone in the office kind of hates the guy who can’t stop talking about his three-month sea kayaking sabbatical. But it’s far worse to be the sourpuss who won’t take any vacation time and diddles away the week complaining about the air conditioning and his sandwich.

It’s obvious to the point of cliche: It’s not the quantity of work that matters, it’s the quality. This is what Federer has seized upon during what should be the end of his career. He realized: I want to win more Wimbledons. I don’t really need to schlep to another Madrid Open.

Federer, of course, is a globally

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THE WALL STREET JOURNAL.

OPINION Our Self-Interested Senators Senate Majority Leader Mitch McConnell at this point has busted pretty POTOMAC much every move in his WATCH effort to rally

By Kimberley 50 votes for A. Strassel an ObamaCare replacement.

He’s listened. He’s negotiated.

He’s encouraged. He’s cajoled.

Lather. Rinse. Repeat.

Months later, still lacking a majority, the time has come for the Kentucky Republican to execute the final, clarifying move. It’s time for Mr. McConnell to make this all about his self-interested members.

Up to now, this exercise has been about trying to improve health care and the federal fisc. The House bill isn’t perfect—no bill ever is—but it amounts to the biggest entitlement reform in history. It repeals crushing taxes. It dramatically cuts spending. And it begins the process of stabilizing the individual healthcare market and expanding consumer freedom.

None of this is good enough for a handful of senators, so now it’s time to make this exercise all about them. Mr. McConnell should make clear that the overwhelming majority of the Republican Party stands ready to make good on its repeal-and-replace campaign promise—and that it would have done so already were it not for a cynical or egotistic few. It’s time for some very public accountability.

That rests in Mr. McConnell giving his caucus a dropdead date to broker a compromise, after which he will proceed to bring up the House bill. And any Republican who votes against moving forward, “a motion to proceed,” will forever be known as the Republican who saved ObamaCare. The Republican who voted to throw billions more taxpayer dollars at failing entitlement programs and collapsing insurance markets.

The Republican who abandoned struggling American families. The Republican who voted against a tax cut and spending reductions. The Republican who made Chuck Schumer’s year.

And that’s only a short list of the real-world accountability. That vote might also provide home-state voters a new, eye-opening means to account for the character of their senators. Few things drive conservative voters battier than phony politicians, those who say one thing and do another to avoid hard choices.

Nearly every Senate Republican is on record having voted to repeal ObamaCare— back when they knew that President Obama’s veto made the vote consequence-free.

And to be crystal clear, any senator who now votes against simply proceeding to debate is doing so for just one reason: To again avoid consequences, to again avoid accountability.

Because the good senators understand just how illuminating those votes would be.

Under the Senate reconciliation process, anyone can offer endless amendments—with roll-call votes.

Voters would be able to see just how gigantic a Medicaid payoff Ohio’s Rob Portman, Nevada’s Dean Heller and West Virginia’s Shelley Moore Capito are demanding for their support. They’d watch supposed conservatives such as Tennessee’s Bob Corker

An open health-care debate finally would bring some actual accountability. vote against pro-growth tax cuts. They’d observe Utah’s Mike Lee offer up changes to ObamaCare mandates, muster not even a dozen votes, and realize how unpopular his position is. They’d witness Kentucky’s Rand Paul vote against all reform ideas—no matter how good—because they still weren’t good enough for Rand Paul.

They’d see Alaska’s Lisa Murkowski cynically vote against the very same repealonly amendment she supported in 2015, back when it didn’t matter. They’d see South Carolina’s Lindsey Graham and Louisiana’s Bill Cassidy cast the only two votes for a bill they’ve been pushing—and confusing everyone with—for weeks.

Mr. McConnell can meanwhile count on a great deal of

help in this accountability effort. Conservative grass-roots groups have tried to play a constructive role throughout this debate, but they have had it with Senate egos. They’re mobilizing to name names.

The chairman of the Faith and Freedom Coalition, Ralph Reed, sent a letter to every senator on Thursday, explaining that his group would be watching the voting and documenting any “no” votes on “tens of millions of congressional scorecards and voter guides to be distributed in 117,000 churches nationwide in 2018.”

A flood of other conservative outfits—the Club for Growth, FreedomWorks, Tea Party Patriots—are launching websites and Twitter campaigns to highlight holdouts.

Some groups are planning primary challenges against those who refuse to debate a bill. The Murkowskis of the world may be hoping nobody will remember by the time they’re up for re-election, but they shouldn’t count on that.

What the Senate leadership most needs to stress these coming days is that senators who claim they can’t “support” debating a flawed bill are snowing voters. Don’t like the bill? Get it to the floor and offer amendments. But do it in the open. Do it with some accountability.

Maybe, finally under the public glare, Republicans will get their act together.

Write to kim@wsj.com.

The Martyrdom of Father Jacques Hamel HOUSES OF WORSHIP

Dominique Lebrun, the

By Christopher archbishop White of Rouen, France, was attending the Catholic Church’s World Youth Day in Poland last July when the news came. One of his priests, 85-year-old Father Jacques Hamel, had been murdered by Islamic State-inspired terrorists while celebrating morning mass on July 26.

Archbishop Lebrun soon received an urgent request from François Hollande, then the French president. Fearful of civil unrest between the nation’s Christians and Muslims, Mr. Hollande requested the archbishop speak with him before making any public statements. “What will you say?” the president asked the archbishop. “I am going to pray and ask God to help me love my enemies,” he replied.

A few months later, Mr. Hollande admitted the prelate had stunned him: He actually seemed to believe what he was saying, and his tone of forgiveness and reconciliation was crucial after the attack.

The following week Muslims throughout the country were encouraged by Islamic leaders to attend Mass as a show of solidarity with their Catholic neighbors.

The killing moved millions of people, including Pope Francis. In September the pope described Hamel as a martyr. He urged Catholics to ask for the intercession of the late priest so that he “gives us the courage to say the truth: to kill in the name of God is satanic.” The Vatican has fasttracked Hamel’s path to sainthood, and Francis has already declared him “blessed,” the first step in the canonization process.

In an earlier era, France’s leader would not have been so shocked by the archbishop’s words of forgiveness. Once thought of as a Catholic country, France, like much of Europe, has abandoned any overt association with its Christian heritage over the past several decades. If Europe’s political leaders were somehow able to reclaim the attitude of sacrifice and solidarity embodied

by Archbishop Lebrun’s statement, it could reshape the way their ailing continent deals with terrorism and the anti-immigrant, populist backlash it produces.

In the aftermath of World War II, when nations throughout Europe were on the verge of collapse, the project of European integration was born to ensure that the war’s atrocities could never be repeated.

There was a strong sense that those who had died in the war had sacrificed themselves so that others could live in freedom and prosperity. In the new European project, stronger countries would help weaker ones. They had a moral responsibility.

After the murder, his archbishop asked God for help loving his enemies. It worked.

leadership, which avoids appealing to emotions to gain consent,” he argued, adding that the European Union needs “a spirit of solidarity and subsidiarity.”

Is it a coincidence that in an era of nationalist populism, the one country that offered a resounding rejection of such principles is the one where an elderly priest was brutally beheaded while offering his daily mass? Could it be that, in this secular European nation, Hamel’s martyrdom triggered, unconsciously, an examination of conscience, stirring many French citizens to reconsider the type of future they want to build and the values they want to define them?

In his statement after Hamel’s death, Archbishop Lebrun noted that the attack produced three victims: the priest and his two killers.

Hamel’s brutal end personified true sacrifice while his attackers’ deaths perverted it. Perhaps the witness of this modern martyr will lead to an embrace of this traditional teaching of solidarity, and therein shore up the foundation of a country and a continent.

And while the European Union has at times been hostile to religious concerns, it nonetheless has been undergirded by the Catholic doctrine of solidarity. This principle demands shared responsibility and sacrifice in spiritual and physical matters, between nations and peoples, rich and poor. A core commitment to the belief in the dignity of all human beings means that the practice of solidarity isn’t one of mere charity, but one of Christian duty.

Speaking to European heads of state this spring, Pope Francis argued that solidarity was the antidote to populism and extremism.

Mr. White is the director of “Politics needs this kind of Catholic Voices USA.

How to Beat the High Cost of Gravity

By Taylor Dinerman

A

lot is going on in outer space. Recently Elon Musk’s SpaceX launched three commercial Falcon 9 missions from Florida and California in less than two weeks. One reused a first stage from a previous flight.

SpaceX will likely succeed in its aim of launching 20 or so Falcon missions this year, including an unmanned test of the Dragon capsule intended to carry American astronauts back and forth to the International Space Station.

At the same time Jeff Bezos’ Blue Origins is continuing to test its New Shepard reusable suborbital tourism rocket. The next stage is the giant New Glenn Reusable Launch vehicle, which would dramatically reduce the cost of getting payloads and people into space.

Messrs. Bezos and Musk are both committed to spreading civilization beyond Earth.

Mr. Musk wants to colonize Mars, while Mr. Bezos wants to develop an extraterrestrial economy with asteroid mining and space manufacturing.

There are other, poorer entrepreneurs, sometimes called

“new space,” dedicated to these goals.

If SpaceX keeps gaining market share and Blue Origins builds and launches its New Glenn rocket, the cost of getting off the ground (literally) will be dramatically reduced, possibly to as little as $10 a pound to low-Earth orbit.

That would make the dreams of both Messrs. Musk and Bezos possible, indeed highly profitable.

Space is a happening place—from Musk to Bezos to Trump.

Low-cost access to space also has military implications. For the U.S., it will be easier for the Pentagon to deploy communications, navigation and reconnaissance satellites. This will be especially useful if the Defense Department follows through on evident congressional desire to develop and deploy a comprehensive set of spacebased missile-defense sensors to guide America’s next generation of interceptor missiles.

Europeans are also interested in reducing the cost of launching. They’re working on an Ariane 6 launch vehicle they hope will allow them to regain some of the market share they have lost to SpaceX. China and Russia are developing new rockets no doubt to imitate the American billionaires’ success.

Aviation Week reports China may be getting serious about developing its own reusable launch vehicles.

Further, China and Russia are reportedly working hard on a variety of antisatellite weapons. The debris from China’s 2007 test of a kinetic space weapon is still floating around, a reminder of what the effects of a space war might be.

Cheap access to space will make it easier to put a variety of weapons into orbit—not just missile defense but spaceto-Earth weapons. The high military value of space assets makes them obvious targets in any future conflict.

The temptation to believe that arms-control agreements could prevent a so-called arms race in space is strong, but in recent years we’ve watched while some of the most significant arms-control

agreements have been trashed.

In Syria the Chemical Weapons Convention was ignored with minimal consequences.

Russia has almost certainly violated the 1987 Intermediate Nuclear Forces agreement and both Iran and North Korean have reaped considerable benefits from departing, informally or formally, from the Non-Proliferation Treaty.

Any agreement to control arms in space would be useless.

For good or ill, humanity is expanding into the solar system. Americans should hope for the best, but the future may not be peaceful, on Earth or in space. On June 30 President Trump kept his promise to re-establish the National Space Council, with Vice President Mike Pence as chairman.

Its most important job will be to reconcile America’s scientific, commercial and military interests in space. If currently pending legislation is enacted, the Space Council will have a role to play in establishing a new branch of the armed forces, the Space Corps.

Mr. Dinerman writes on space policy and national security.

BOOKSHELF | By John Donvan

More Hugs Than Most Can Bear The Boy Who Loved Too Much

By Jennifer Latson (Simon & Schuster, 290 pages, $26)

S

ometimes writers portraying people with genetic and developmental conditions are tempted to play the “fascination” card, framing individuals’ behavior as tantalizingly exotic or charmingly otherworldly. Coverage of autism used to see a lot of this: There were headlines like “The Kids With the Faraway Eyes” (Rolling Stone), “The Trance Children” (Time) or “The Strangers in Our Midst” (McCall’s).

The goal of such an approach is obvious: to get general readers to feel and to care. But fascination-driven narrative can become exploitative, reducing real people with challenging conditions to convenient specimens, put on display for the public’s voyeuristic curiosity.

Jennifer Latson avoids these pitfalls in “The Boy Who Loved Too Much: A True Story of Pathological Friendliness,” even though her title does play the fascination card pretty hard. The book is an account of Williams syndrome, a genetic condition that affects cardiovascular function, visual perception, dexterity, growth, lifespan and learning ability.

But another symptom is always evident as well—a craving for amicable human contact, what Ms. Latson calls an “insatiable drive to connect.” So powerful is this compulsion that, in the daily lives of people with Williams, it bursts through continuously, in ways both endearing and disruptive. People with Williams regularly declare their affection to people who just happen to be passing within eyesight or earshot, whether true acquaintances or random strangers. They like to get physical, too.

The mailman, the ticket taker at the ballgame, the fellow passenger on a plane—around a Williams person, all become targets for unannounced, unrequested and unnerving hugs.

That is an exotic behavior, and Williams—which only affects 1 in 10,000 people and is therefore considered “rare”—hardly gets any attention in the media. Ms. Latson asks us to care by suggesting that “the findings from this rare disorder have farreaching repercussions for the rest of us,” and in fact she makes this case convincingly: The key breakthrough was the unambiguous discovery of specific gene deletions in people with the condition—including, curiously, the gene that governs production of the substance that helps skin bounce back to its starting shape after being pinched or stretched. Its role in Williams is unclear, but the specificity gives researchers a genetic address to work from. Related genes, she reports, have led to new insights about high blood pressure.

The narrative that takes up most of the book’s pages is a sensitively drawn portrait of the boy referred to in the title, who is given the pseudonym Eli and whose daily reality Ms. Latson appears to have made an extraordinary effort to get to know. The author’s acquaintance with Eli is longitudinal, covering the three years beginning just after he had turned 12.

She clearly spent significant amounts of time with Eli and his family, which also included his single-parent mother, Gayle (also a pseudonym), and sometimes his grandmother. Long stretches of dialogue—during lengthy car rides, at family gatherings, in counseling sessions—indicate that Ms. Latson had a tape recorder running, or else was a phenomenal notetaker, because the conversation rings true. It also works to let this family tell its own story.

People with Williams syndrome regularly declare their affection to passing strangers.

They like to get physical, too.

That story, painfully, is one of constantly threatening heartbreak, as Ms. Latson chronicles Eli’s aspirations of instant intimacy with all those he meets, and witnesses their repeated failure of his efforts to connect. Too quick with a compliment, too ready with a smile of his extra-wide mouth (which, along with an upturned nose, small chin and puffiness around the eyes, is part of the classic set of facial features that go with Williams), he is all too often met with snickers, shrugs or the backside of a shoulder. As Ms. Latson lays it out, his dreams of friendship seemed doomed from the start, because of a certain ironic truth of human nature: Most of us set limits to the intensity of affection we can tolerate coming from others. If asked to clarify for someone else where we draw that line, most of us would probably be hard-pressed to place it exactly. For Eli, who crossed it all the time, it was virtually invisible.

Thankfully, Eli seems oblivious to the snubs. Not so his mother, who opened up to Ms. Latson about the many ways in which raising a boy like Eli caused an unwanted revolution in her life. Hurting over every rejection she sees Eli encounter, fearful that a cruel world will treat him shoddily, Gayle makes herself his full-time friend and protector. She gives herself over to this role fully, but not without some sorrow over the limits the responsibility places on her own life. Only late in the story, when she learns that the other children in his mainstream classes have been looking out for him all along—because they’d had their entire school lives to get used to his ways—does Gayle catch a glimpse of a future where, perhaps, Eli will be able to get along without her.

This raises the question of society’s acceptance of difference, a discussion that gains much from Ms. Latson’s efforts to explore the importance of social contexts in shaping the experience of people with Williams. She reports, for example, that those with the syndrome who live in Japan face a great deal more public hostility than who reside in the U.S.: To the Japanese, the gregarious behaviors that come with Williams are more in conflict with long ingrained social norms of reserve, personal space and privacy. This suggests Eli’s chances for success or failure in life might still depend meaningfully on how he is met by those of us who know little of Williams syndrome.

It’s an open question whether we will respond as positively as his classmates did, but Ms. Latson’s book makes a persuasive case that we should try.

Mr. Donvan is the co-author, with Caren Zucker, of “In a Different Key: The Story of Autism.”

Coming in BOOKS this weekend How human creativity evolved • Traveling the world with Lowell Thomas • Claude Shannon’s information age • The novels of Ngugi wa Thiong’o • Ladies who lunched • Hitler in the dock • Shakespeare’s Rome • & more

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THE WALL STREET JOURNAL.

A16 | Friday, July 21, 2017

OPINION

P

REVIEW & OUTLOOK

LETTERS TO THE EDITOR

Trump’s Nafta Stakes

California GOP Stopped a Much Worse Folly

resident Trump campaigned on tearing financial services, telecommunications and inup Nafta, but maybe he’s learning on the tellectual property. This recognizes that trade job. The White House this week rolled in services is growing fast and an area in which out its objectives for renegotithe U.S. has a significant comHow to renegotiate the parative advantage. For inating the North American Free Trade Agreement that the Administration treaty without blowing stance, could allow him to claim vicsays it aims to “secure comup the economy. tory without doing too much mitments not to impose cusprotectionist damage. toms duties on digital prodThe President has blamed ucts” and to prevent Nafta for U.S. manufacturers moving jobs to restrictions on sending and storing data.

Mexico. In April Mr. Trump came close to terThe Administration will also try to minating the deal before cooler heads in the “strengthen the rules of origin,” which require Administration persuaded him that withdraw- a certain share of products to be sourced in ing would be a disaster for U.S. businesses, es- North America—e.g., 62.5% for autos—to qualpecially farmers. ify for preferential trade treatment. One risk Nafta has helped American businesses stay of raising the thresholds is that manufacturers competitive and prevented a larger exodus of may decide it makes more sense to move jobs overseas by integrating cross-border sup- abroad and pay an import tariff. ply chains. Consider Cummins, which makes Canada and Mexico adopted many of the Adthe engine for Chrysler’s RAM truck outside ministration’s objectives in the stillborn TransColumbus, Ind. Cummins exports its engines to Pacific Partnership, so the biggest sticking a Chrysler plant in Mexico, where the trucks points will likely be trade remedies. Mr. Lightare assembled and sent back to the states. Prior hizer has called for eliminating Nafta’s “global to Nafta, Mexico imposed tariffs as high as 20% safeguard exclusion” to allow the U.S. to take on automotive imports as well as local content action if a surge of imports imperils its domesrequirements of 80% that shut out U.S. suppli- tic industries. He also wants to let the U.S. “imers like Cummins. pose measures based on third country dumpAmerican inputs make up 40% of Mexican ing.” So the U.S. could, say, levy duties on products exported to the U.S. Since 2007 U.S. Mexican products with Chinese steel, though exports of auto parts to Mexico have more than such actions would likely be challenged and indoubled. Nafta has enabled U.S. auto makers to vite retaliatory tariffs. compete with the Japanese, and many cars asNafta allows investors to arbitrate disputes sembled in Mexico with American parts are with foreign governments. The Administration shipped to Asia and Europe. Another example is targeting this system as some on the right of cross-border integration: Canadian manufac- claim that it undermines U.S. sovereignty. turers use U.S. scrap metal, coal and iron to Unions also hate arbitration because it reduces produce steel slab and coil for American vehi- the risk of investing in Canada and Mexico. But cles, airplanes and public works. the system has protected American investors Some of Nafta’s biggest winners are Ameri- from arbitrary policies, and the U.S. governcan farmers. Nafta cut Mexico’s high agricul- ment has never lost a case. tural tariffs—ranging from 15% on soybeans The White House wants to conclude negotiaand processed vegetables to 215% on corn—to tions by the end of this year, though they could zero on most products. U.S. exports of feed- drag on if it tries to back Canada and Mexico stock to Mexico have soared. Soybean sales to into protectionist corners. While the President Mexico have quintupled since Nafta was final- may think he has the whip hand, the U.S. can’t ized in 1993. Farm and ranch exports to Mexico afford to jilt its neighbors. Mexico is currently and Canada have more than quadrupled. renegotiating its 2000 trade accord with the It’s true that Canada’s supply-managed dairy European Union to boost its trade in services system remains walled off from competition, and agriculture. It is also seeking to reduce its and pricing policies discriminate against such dependence on U.S. agriculture. During 2017’s U.S. products as a milk-protein used to make first four months, Mexican imports of U.S. soycheese. Canada also maintains high tariffs on bean meal fell 15%. Canada has just concluded U.S. poultry, eggs and wine. Mr. Trump should a deal with Europe. seek to ease these trade barriers in return for If Mr. Trump wants a political victory, he’ll giving up some U.S. farm subsidies. push to further open Mexican and Canadian A major focus of U.S. Trade Representative markets rather than impose trade barriers that Robert Lighthizer’s agenda will be e-commerce, hurt American businesses and consumers.

T

Sessions Hangs In There

he White House said Thursday that special counsel appointment was Mr. Trump’s President Trump still has confidence in dismissal of FBI Director James Comey followed Attorney General Jeff Sessions, but af- by his tweet implying that he had tapes of his ter the past two days the betmeetings with Mr. Comey.

Trump needs the ter question is whether Mr. Mr. Sessions might have reSessions still has confidence signed after this presidential Attorney General more outburst, in the President. Mr. Trump but we’re glad he than he realizes. needs the AG at this point didn’t. The AG said Wednesmore than the reverse. day he’d serve “as long as that Mr. Trump is like no other is appropriate” and that “we President, and he proved it on Wednesday by love this job.” We have our policy differences telling the New York Times that he would never with the AG (see nearby on asset forfeiture), but have tapped Mr. Sessions for AG if he had known no one doubts that he is a man of integrity who he would recuse himself from the investigation will defend the Justice Department against iminto Russia’s 2016 campaign meddling. “He proper political interference. should have told me before he took the job and President Trump has shown he isn’t bound I would have picked somebody else,” Mr. Trump by political norms, and he needs advisers like said, but Mr. Sessions didn’t know at the time Mr. Sessions to say when one of his impulses he would be presented with such a choice. He would be a mistake. The same goes on national did so after news came out that he had met with security with Defense Secretary Jim Mattis, or the Russian ambassador during the campaign, on economic policy with adviser Gary Cohn. and Mr. Sessions didn’t want any political doubt Working for a President who can be as willful hanging over the investigation. and rash as Mr. Trump can’t be easy, and some Mr. Trump is understandably upset about advisers may find it impossible over time. But the special counsel probe into Russia, but Dep- Mr. Trump needs people who can protect him uty AG Rod Rosenstein didn’t appoint counsel and the country from his worst instincts, and Robert Mueller until months after Mr. Sessions if Mr. Sessions quits, Mr. Trump might not find recused himself. The political trigger for the anyone else who’ll take the job.

I

The Other Sessions Issue

n today’s polarized Washington, Jeff Ses- come down to “a pledge to be more careful.” sions has managed the feat of uniting For example, Justice says it will now require folks on the left and right. We’re referring a “form that state and local law enforcement to the Attorney General’s demust fill out,” which will then Giving law enforcement be reviewed by the departcision this week to revive an asset forfeiture program ment’s lawyers. This is due a license—and whose overreach proved too process? incentive—to steal. much even for the Obama AdIt’s not even clear this proministration. gram helps actual law enCivil asset forfeiture allows forcement. In March the Juslaw enforcement officers to seize property such tice Department Inspector General released a as homes and cars and cash thought to be paid report on cash seizures and forfeiture. It fofor or generated by criminal activity. In 2015 cused in particular on the Drug Enforcement then Attorney General Eric Holder restricted Agency, which accounted for 80% of Justice’s the practice. But before an audience of law-en- cash seizures from 2007 to 2016. forcement officials on Wednesday, Mr. Sessions The IG found a fundamental problem. Berevived it as a “key tool” to “hit organized cause Justice has no “seizure-specific metrics” crime in the wallet.” That’s the theory. But it to evaluate how these seizures and forfeitures has many problems. relate to criminal investigations, no one knows.

The first is that taking property from citi- In a sample of 100 cash seizures, the DEA could zens who have been convicted of no crime is verify only 44 that “advanced or were related constitutionally dubious. Mr. Sessions is also re- to criminal investigations.” viving a program that allows local law enforceIn the past decade forfeitures under Jusment to seize these assets in conjunction with tice’s Asset Forfeiture Program have reached the feds. This lets them evade the laws in 14 $28 billion. We all know what it’s like to be states that bar asset forfeiture absent a criminal ticketed by a police officer who is doing so as conviction. The feds and local cops share the part of a quota designed to raise revenue. But spoils, an obvious incentive for abuse. what happens when you give the cop the right Mr. Sessions says he’s added new safe- to take the car too? This dangerous practice guards to prevent abuse. But Robert Johnson, cries out for a slap from the Supreme Court or an Institute for Justice lawyer who specializes an override by Congress that for once seems in property rights, points out that these mostly to have bipartisan agreement.

Regarding your editorial “California’s Climate Cap and Spend” (July 19): As sea levels rise, wildfires rage and climate science becomes more alarming, the Journal has once again aligned itself with the Flat Earth Society. While scientists like Stephen Hawking warn us that organized human existence hangs in the balance and implore us to take swift climate action, your readers are encouraged to focus on low politics. Republicans, who voted for this bill, we’re instructed, “will now have a harder time using cap and trade as an issue next fall.”

This editorial board remains so blinded by politics that it can’t even recognize it’s railing against a program that embodies the same free-market approach it supports.

While bemoaning the costs “manufacturers, refiners and other employers” face, the Journal doesn’t tell readers why, in fact, these groups wholeheartedly support California’s cap-and-trade program. Like Republicans who have long backed cap and trade, and those who just voted for its extension, these employers understand that this program is the most cost-effective way to reduce carbon emissions—three to five times cheaper than the alternative.

Just hours before the vote, Ronald Reagan’s Secretary of State George Shultz put it this way: “Passing this bill on a bipartisan basis is something on which Ronald Reagan, as with the Montreal Protocol, would be proud.”

Here in California, we think it’s a good thing when Republicans and Democrats set aside their differences. We hope others—including the Journal—join us before it’s too late and honestly confront climate change.

GOV. JERRY BROWN Sacramento, Calif.

Let’s be clear about the victories Republicans achieved with our capand-trade reforms in a deep blue Democrat state. We protected over 200,000 jobs, increased personal income by over $20 billion and reduced costs for California consumers by over $15 billion. We served our people and did our jobs as legislators by rolling back taxes, cutting regulations and protecting Cali-

fornians from higher costs. Those are the facts. This is what we as Republicans fight for everyday all day.

Progressive Democrats and radical environmental-justice groups strongly oppose this bill, while every major business group and industry supports it. That should tell you all you need to know. There is a lot of misinformation about this reform, and the record needs to be set straight that this isn’t SB 32 (reduction in greenhouse gases) or SB 1 (gas-tax increase). We were able to reform the cap-and-trade program to create a market-based system that allows companies to achieve required environmental goals in what has irrefutably been recognized as the most effective and efficient manner possible.

Without this reform, the far left would have created and implemented a carbon-tax command and control that would have caused taxes to skyrocket. We are talking about the cost of gas, food, utilities—all things that Californians who can’t afford a Tesla in the driveway and solar panels on their roof care about.

When the Democrats passed SB 32 with a majority vote, it gave broad authority for unelected bureaucrats at the California Air Resources Board to impose burdensome and costly regulations on California businesses. Further, in 2010 at the height of the 2007-09 recession, California voters were given the chance to overturn the original GHG reduction bill with Proposition 23. It failed by more than a 20% margin. Even a majority of Republican-held districts voted against it.

Republicans in California must live with the realities of a deep-blue Democratic state. This isn’t Washington, D.C., or Kansas. We have to cut taxes and regulations every chance we get. Refusing to engage on issues such as climate change because it is not deemed Republican enough doesn’t help the people we came here to represent.

CHAD MAYES ROCKY CHAVEZ Sacramento, Calif.

Mr. Mayes is California Assembly Republican Leader; Mr. Chavez is an assemblyman.

The Real Infrastructure Problem Is Politics Regarding your editorial “If You’re Riding Through Hell . . .” (July 15): The saga of rail and transit neglect in New York City makes a sad story, but it’s played out in many forms in other places. To public-works professionals, the message is clear: Let us run our systems as businesses and hold us accountable. That maxim of good government got a jump start in New York a century ago, with budgeting reforms that showed how to direct money to where it’s needed and avoid siphoning it off politically. How best to balance social needs such as subsidies for lowincome people? Don’t expect the businesses to do that. Handle that part transparently and from independent funding sources. That lesson must be learned if we are ever to stop “riding through hell.”

PROF. NEIL S. GRIGG Colorado State University Fort Collins, Colo.

thee-well; squeaky clean, including the platforms and rail beds; polite, helpful staff are located everywhere and the trains run on time. It serves 3.5 million people every day. We have a long way to go.

KEN MORIARTY Shaftsbury, Vt. Crumbling roads and bridges don’t demonstrate or vote; public employees and other seekers of government benefits do.

PROF. E.S. SAVAS Bernard Baruch College City University of New York New York

Westaby Warns America About British Single-Payer

Regarding Laura Landro’s review of cardiac surgeon Stephen Westaby’s “Open Heart” (Bookshelf, July 14): Dr. New York, New Jersey and Connect- Westaby’s comments on Britain’s health-care system should be a wakeicut are overwhelmingly progressive up call to those in our country advostates. It stands to reason, therefore, cating a single-payer, government-run that a majority of metropolitan New York-area commuters who will have to health-care system. Ms. Landro states: endure the protracted, exorbitant ren- “One theme in ‘Open Heart’ is Dr. Westaby’s frustration with Britain’s ovation of New York’s transit system National Health Service, which, he themselves voted for the politicians overseeing their fate. They asked for it; says, values saving money over saving lives. . . . There are other problems too: they got it.

BRUCE GARRISON Dire situations often get worse, he Ossining, N.Y. says, because of treatment delays and poor attention to best practices, like administering clot-busting drugs after I have long posited that the end game in America will be a war between a heart attack. Medical directors, he says, seem intent on ensuring that ‘no public employees and the taxpayers one does anything new or interesting.’” that they and their unions continually JIM DARNELL fleece. Look to Illinois, California and Palm Harbor, Fla. Connecticut for examples of beholden politicos willing to bankrupt the public coffers to prop up unrealistic publicemployee pension plans. As long as public-worker unions are allowed to finance elections, that sucking sound of wasted money will continue to keep THE WALL STREET JOURNAL Lady Liberty up at night.

JONATHAN WILLIAMS Longmont, Colo.

Pepper ...

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Friday, July 21, 2017 | A17

OPINION

By Dorothy Rabinowitz

O

n May 28, 1940, Winston Churchill held a meeting of his government’s ministers. “I described the course of events and showed them plainly where we were, and all that was in the balance,” Churchill later wrote. “Then I said quite casually . . .: ‘Of course, whatever happens at Dunkirk, we shall fight on.’ . . . I was sure that every Minister was ready to be killed quite soon, and have all his family and possessions destroyed, rather than give in. . . . There was a white glow, overpowering, sublime, which ran through our island from end to end.”

Winston Churchill is missing in action from the new film by the director of ‘Batman.’

“Dunkirk,” opening in theaters Friday, is noteworthy in many respects. Not least for its creator’s decision—on the interesting ground that it would make things clearer for audiences—to avoid any appearance of Churchill. Of, that is, the newly appointed prime minister central to this story: the voice of that embattled Britain whose citizens, answering their government’s call, set out to rescue its army, stranded on the beaches of northern France in May of 1940.

Director Christopher Nolan, whose credits include “Batman Begins” and “The Dark Knight,” has said he wanted to avoid making a film “not

relevant to today’s audiences” and that he didn’t want to get them bogged down in “politics.”

This says more than Mr. Nolan intended about his estimate of today’s moviegoers—whose capacities, he fears, would not be equal to a film involving images of a historic figure.

There were other worries. Mr. Nolan didn’t want to make a film that could be seen as old-fashioned, he informed his interviewer. It appears further that the director wanted to avoid taxing today’s film audiences with any specifics about the foe that had the British Expeditionary Force fighting for its life on those beaches.

“We don’t have generals in rooms pushing things around on maps,” Mr. Nolan explained. “We don’t see Churchill. We barely glimpse the enemy.” All true. Though there are quite a number of enemy planes, bombers smashing the troops on the beach. The bare glimpse Mr. Nolan mentions is of the insignia identifying the nation to which those planes belong. Who could it be?

On the other hand, the markings on the British fighters engaging the enemy in dogfights loom large and clear. As do the reasons for all of the above. For, as Mr. Nolan has told us, he considers Dunkirk “a universal story . . . about communal heroism.”

Which explains why this is—despite its impressive cinematography, its moving portrait of suffering troops and their rescuers—a Dunkirk flattened out, disconnected from the spirit of its time, from any sense even of the particular mighty enemy with which England was at war.

When an event in history has become, in the mind of a writer, “universal” it’s a tip-off—the warning bell that we’re about to lose most of

MELINDA SUE GORDON

The Dumbing Down of ‘Dunkirk’

A scene from Christopher Nolan’s ‘Dunkirk.’ the important facts of that history, and that the story-telling will be a special kind—a sort that obscures all specifics that run counter to the noble vision of the universalist.

No wonder those German Stukas and Heinkels bombarding the British can barely be identified as such.

Then there is Mr. Nolan’s avoidance of Churchill lest audiences get bogged down in “politics”—a strange term for Churchill’s concerns during those dark days of May 1940. One so much less attractive, in its hint of the ignoble and the corrupt, than “communal” and “universal”—words throbbing with goodness. Nothing old-fashioned about them either, especially “universal”—a model of socio-babble for all occasions.

The certainty of the Nazis’ threat is what preoccupied Churchill. His testament to the sterling attitude of his ministers, quoted above, kindly omits mention of the protracted arguments

from those in his war cabinet who pressed for some respectable accommodation with Hitler, for some effort at least to open talks.

There was, for Churchill, no acceptable accommodation with Hitler.

He knew the disastrous impact on British morale of any word of talks or arrangements with the Nazis. They would instead hear from their new prime minister only the iron determination to defeat the enemy, the confidence that it would be done—which had not a little to do with the strengthened spirit of the British public. They had been asked to fight for victory at all costs, and most knew why they must—among them those pilots of small boats braving German fire to rescue the army.

The film’s aim, as its director says, is to tell a universal story of individuals struggling for survival. A struggle for survival under terrifying assault is exactly what we see through

most of the action. Left out of this saga is any other sense of the importance of Operation Dynamo, the unexpectedly successful rescue of 338,000 soldiers who could, instead of being marched off to captivity by that barely visible enemy—call it Nation X—return to an England desperate for manpower.

Continuing the fight was, to this England facing invasion, everything.

To leave out of this story, in addition to Churchill, any sense of England’s peril or the might of its enemy is to drain much of the life out of history.

All this falls into the category of facts, irrelevant history, that Mr. Nolan would consider wrong for today’s audiences. To the very end no image of Churchill defiles the sanctity of this film’s safe space. One of the final scenes does present an exhausted evacuee returned from Dunkirk, reading aloud to himself from a newspaper of Churchill’s most famous address, of June 4, 1940. The “We shall never surrender” speech is spoken by a young soldier, making it all reassuringly relevant—no trace of the man himself.

It’s possible of course that a director less apprehensive about appearing old-fashioned might have risked an actual clip of the prime minister without undue harm to the audience.

In the bleak days of 1940, Churchill told his cabinet: “If this long island story of ours is to end at last, let it end only when each of us lies choking on his own blood on the ground.” If Batman ever said anything remotely as interesting, he’d have our devoted attention.

Ms. Rabinowitz is a member of The Wall Street Journal’s editorial board.

‘Neutrality’ for Thee, but Not for Google, Facebook and Amazon

By Ev Ehrlich

G

oogle, Facebook and dozens of major internet companies joined forces last week for a “Day of Action” to rally support for “net neutrality.” That’s the idea that everything on the internet—email, ecommerce transactions, cat videos and so forth—must travel at the same speed and under the same conditions. This latest stir-up comes as the Federal Communications Commission is moving to overturn large parts of the Obama administration’s 2015 net-neutrality policy.

Both sides, including broadband providers, agree that no one should selectively block websites or chop the internet into fast and slow lanes. But lost in the debate is that companies like Google and Amazon, which cry out in favor of a neutral web, are virtual monopolies built on the same practice of prioritizing that they publicly decry.

Since the birth of broadband, net neutrality’s cheerleaders have feared that service providers might begin to act as the internet’s “gatekeepers,” undermining its inherent freefor-all character. But cyberspace’s

dirty secret is that the gatekeepers aren’t the broadband providers lampooned by the likes of John Oliver.

The real distortions come from massive “platform monopolies” like Google, Facebook and Amazon, whose proprietary algorithms decide what users see online.

The supposed purpose of “net neutrality” is to stop any internet company from getting a leg up over others. But that’s exactly what happens when Google’s search results prioritize its own services—and profits—over competitors’. This skewing of results has “stifled competition on the merits,” according to the European Commission, which fined Google $3 billion last month for the practice. If Google’s favoring its own products while pushing potential competitors down its rankings doesn’t create “fast” and “slow” lanes, what on earth does?

Similarly, avowed net-neutrality supporter Amazon was granted a patent in May for “Physical Store Online Shopping Control,” a system to block shoppers in brick-and-mortar stores from using Wi-Fi to view competitors’ prices. Isn’t “no blocking” the heart of net neutrality?

Facebook, meanwhile, has virtually abandoned chronology in its News Feed in favor of picking and choosing what users see—and what they don’t—based on what the company has learned about them.

The internet giants driving net neutrality are happy to skew your web experience to goose their profits.

The costs of such abuses from the platform monopolies are obvious and many. Newspapers have nearly been “prioritized” out of existence by Google’s shameless appropriation of their work: Why click through and read a whole article when Google News will pluck out the most important bits and show them to you free—alongside its own ads, of course. Music could be next, since Google’s YouTube service serves up pirated digital streams that leach money from artists and record companies. Last year, the FCC chairman tried and failed to

force TV companies to make their feeds available on set-top devices made by—wait for it—Google, Apple and Amazon.

The internet giants behind the Day of Action can now track users’ physical location 24 hours a day, learning where they live and work, by logging where their phones are at different times of day or the WiFi networks they pass. If two phones sit side by side overnight, advertisers knows what that means—and appropriately “targeted” pitches are sure to follow.

Whether it’s just a massive blind spot or neck-snapping hypocrisy, a net-neutrality campaign led by companies that manipulate how Americans experience the web in these ways is an Orwellian embarrassment.

The implications are frightening.

Today, online news stories are so narrowly targeted that defining events—this generation’s Selma, Vietnam or Watergate—might be seen only by a small slice of users prepared to believe them. Whatever role “fake news” played in the 2016 election, it will be merely the tip of the iceberg if secret algorithms are

allowed to continue shaping America’s information reality.

But for the internet giants there is enormous money at stake. Facebook and Google alone already earn more from advertising than every newspaper, magazine and radio station in the world combined.

Unlike the internet service providers, who have a limited share of any market, the platform giants are close to completing actual monopolies.

Google now controls nearly 80% of the global market for web search, and 88% of the world’s smartphones run on its data-mining Android operating system. Amazon’s “everything store” was a quasi-monopoly, accounting for nearly a third of total U.S. retail growth in 2016, even before its acquisition of Whole Foods.

America needs a fair and open internet ecosystem. Allowing Google, Facebook and the like to prioritize, discriminate and mine users’ data at will threatens democracy and makes the internet neither open nor free.

Let’s not let these monopolists hide behind the slogan of “neutrality.”

Mr. Ehrlich served as undersecretary of commerce, 1993-97.

In the Netherlands, the Doctor Will Kill You Now

By Kees van der Staaij

I

n 2002 the Netherlands became the first country to legalize euthanasia and physician-assisted suicide for those suffering deadly diseases or in the last stages of life.

Not long after the legislation was enacted, eligibility was expanded to include those experiencing psychological suffering or dementia. Today pressure is mounting for the Dutch government to legalize a “euthanasia pill” for those who are not ill, but simply consider their lives to be “full.”

Proponents of assisted suicide continue to claim that safeguards already built into Dutch law are sufficient to reduce the risk of abuse. They point out that medical professionals are required to assess whether a person’s suffering

is indeed unbearable and hopeless.

These safeguards do exist. In practice, however, they are hard to enforce. A poignant illustration was recently aired on Dutch television.

An older woman stricken with semantic dementia had lost her ability to use words to convey meaning.

“Upsy-daisy, let’s go,” she said. Both her husband and her physician at the end-of-life clinic interpreted her words to mean, “I want to die.” A review committee judged her euthanasia was in accordance both with the law and her earlier written instructions, an outcome very few would have imagined possible as recently as 10 years ago.

Such episodes have many Dutch people worried about the erosion of protections for the socially vulnerable and medically fragile. A broad and heated public debate recently

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flared about whether doctors may administer fatal drugs to those with severe dementia based on a previously signed “advance directive.” In several controversial cases, assisted suicide was not directly discussed with patients who were incapable of reaffirming earlier written death wishes. In one case, a doctor slipped a dementia patient a sleeping pill in some apple sauce so that he could be easily taken home and given a deadly injection.

Hundreds of Dutch physicians signed a declaration outlining their moral objection to these increasingly common practices. Nonetheless, the Dutch government stands by its claim that the law permits doctors to end such patients’ lives.

Meanwhile, the Dutch Right to Die Society, a national euthanasia lobby, keeps pressing to take further steps, arguing that individuals should have the option to “step out of life.”

But is this argument really convincing? Those seeking death because their lives are “full” are often haunted by loneliness and despair.

Some elderly people fear bothering

their children with their social and medical needs. They don’t want to be perceived as burdensome.

Legalizing the euthanasia pill could put even more pressure on the vulnerable, disabled and elderly.

More than 60% of geriatric-care

Healthy people who consider their lives ‘full’ may soon be eligible for assisted suicide. specialists already say they have felt pressure from patients’ family members to euthanize elderly relatives. Will the day come when society considers it entirely normal— even “natural”—for people who grow old or become sick simply to pop the pill and disappear? If so, those who desire to continue living in spite of society’s expectations will have some serious explaining to do.

All of this clearly shows the

slippery slope of the euthanasia path. Contrary to the emphatic advice of a special advisory committee chaired by a prominent member of a liberal-democratic party, the outgoing Dutch government wishes to expand and extend the euthanasia law to those who consider their lives to be full. The pressing question is where the slope ends and the abyss begins. Will those with intellectual disabilities or physical defects also be “empowered” to step out of life?

Will those battling thoughts of suicide be encouraged to opt for a “dignified death” in place of excellent psychiatric care?

The government’s most fundamental task is to protect its citizens.

The Dutch government, to its credit, often speaks out when fundamental human rights are under threat around the world. Now that the fundamental right to life is under threat in the Netherlands, it’s time for others to speak out about the Dutch culture of euthanasia.

Mr. van der Staaij is a member of the Dutch Parliament.

Notable & Quotable: Peeling the Onion From a July 6 blog post by Cynthia Weber, a professor of international relations at the University of Sussex: The US satirical website The Onion recently ran a fake testimonial video featuring a remorseful Donald Trump supporter. The 2-minute clip is entitled ‘Trump Voter Feels Betrayed By President After Reading 800 Pages of Queer Feminist Theory’. The video features the character ‘Mike Bridger, Former Trump Supporter’, a middleaged, working class, cishet white

male from a small steel town in Pennsylvania. The balding Mike is shot in documentary talking-head style. Mike sits facing the camera, both so that his truthfulness can be evaluated by viewers and so that what US Americans will recognize as his iconic working-class garb is fully in view—dark tan zip-up jacket, olive-green button-down shirt open at the collar, white t-shirt visible underneath. Accompanied by slow music which sets a troubled, post-catastrophe tone, Mike tells his story. . . .

Because it relies upon right-wing

populism to inform its caricatures of ‘the queer feminist’ and ‘the Real US American’, The Onion video not only lays the blame for the unbridgeable gap it constructs between ‘cultural elites’ and ‘the people’ squarely at the feet of queer feminists. More troublingly, it encourages the idea that to reject anti-genderism is to reject the genuine concerns of ‘the people’. This is nonsense. . . .

In the age of Trump, the stakes of The Onion video and its various uses are much higher than who is laughing and why.

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A18 | Friday, July 21, 2017

THE WALL STREET JOURNAL.

For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.

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TECHNOLOGY: ELON MUSK CREATES STIR WITH HYPERLOOP TWEET B4

BUSINESS & FINANCE

© 2017 Dow Jones & Company. All Rights Reserved.

S&P 2473.45 g 0.02%

S&P FIN g 0.06%

THE WALL STREET JOURNAL.

* * * **

S&P IT À 0.04%

DJ TRANS g 0.97%

WSJ $ IDX g 0.31%

Friday, July 21, 2017 | B1

LIBOR 3M 1.313

NIKKEI (Midday) 20093.57 g 0.25%

Regulators Retrench on Pay Rules Move is part of effort to pull back from measures deemed unfriendly to business

BY DAVE MICHAELS WASHINGTON—Several regulators have dropped pursuit of a long-running plan to restrict bonuses on Wall Street, as part of a wider effort to stop working on unfinished rules put in place after the financial crisis.

Government agencies, including the Securities and Exchange Commission and several banking regulators, were directed under the 2010 Dodd-

Frank law to develop compensation rules intended to curb excessive risk taking. Former President Barack Obama, during his last year in office, personally urged regulators to finish the rules before his term ended.

The six agencies delivered a new proposal in April 2016, but that was too late to push through a final version of the rule before President Donald Trump took office in January.

New regulatory agendas unveiled Thursday by the SEC and others show leaders excluded any mention of the restrictions, including longer deferment periods for bonuses and the amount of time payouts are subject to potential clawbacks.

“We’ve moved beyond commissioners and staff who were deeply involved in trying to fix things after the crisis,” said Tyler Gellasch, a former Democratic Senate aide who is now executive director of Healthy Markets Association, a group of mutual-fund managers and pension funds. “The priorities are more commensurate with where the economy and financial system is today.”

Rules requiring compromise among multiple regulators have proved to be heavy lifts.

Agencies first proposed the incentive-compensation regulation in 2011, but questions about which employees should be covered and how to apply the restrictions to firms with

The proposal had targeted executives at some of the nation’s largest financial firms, including investment managers and mortgage-finance companies Fannie Mae and Freddie Mac, but the stiffest rules were reserved for big banks.

The shift, disclosed in a semiannual list of pending regulations federal agencies provide to the White House’s budget office, discloses how regulators in the Trump administration have started pulling back from postfinancial crisis rules. New SEC Chairman Jay Clayton has outlined a more business-friendly agenda, including promoting more ways for companies to raise capital in public markets.

different business models bogged down further progress.

It isn’t clear what consequences agencies would face if they abandon the proposal.

Republican lawmakers, who control both houses of Congress and opposed DoddFrank, won’t force action.

Some advocacy groups that backed Dodd-Frank have sued the SEC to finish rules, including one that required oil and gas companies to report payments they make to governments for mining rights.

“Its pretty outrageous that independent financial regulatory agencies appear to be thumbing their nose at Congress and statutory manPlease see RULES page B2

STREETWISE | By James Mackintosh

PepsiCo ‘Stretches’ No Bubble in Tech Rally, Just Catch-Up Forever Spotting Bubbles Managers At Top PepsiCo Inc.’s longtime leader, Indra Nooyi, is promoting one of her lieutenants into the vacant No. 2 position at the company, in a move that shuffles potential successors to her job.

Ramon Laguarta, head of the company’s Europe and subSaharan Africa business, will become PepsiCo’s president, a headquarters role covering global operations, corporate strategy, public policy and government affairs. The spot has been unoccupied for nearly three years.

Mr. Laguarta’s current duties will be given to Laxman Narasimhan, who will continue to oversee the snack-and-beverage giant’s Latin America division. Both appointments will take effect Sept. 1.

In an interview, Ms. Nooyi, 61 years old, said she intends to keep running the Purchase, N.Y.-based company “for the foreseeable future.” The two promotions are the latest in a series of moves over the past few years to “stretch” executives and prepare them to be contenders for the top job, she said. The company’s division heads will continue to report to her.

The leading internal candidates to succeed Ms. Nooyi include Mr. Laguarta, Mr. Narasimhan and Hugh Johnston, PepsiCo’s chief financial officer, who in 2015 was named vice chairman and put in charge of e-commerce and information technology.

PepsiCo, which has a market value of about $165 billion, has been using higher prices, smaller packaging and a broader product portfolio to help boost results amid shifting consumer tastes that are pressuring the packaged-food and beverage industries. Despite falling soda demand and other industry challenges, the company’s profit margins are rising and its shares are trading near all-time highs.

During Ms. Nooyi’s 11-year tenure, two potential successors have been promoted to the No. 2 role of president only to leave the company later on. The job has been vacant since the 2014 departure of Zein Abdalla.

Ms. Nooyi, who was chief financial officer and president before she was named chief executive in 2006, said Mr. Laguarta shouldn’t be presumed to be her successor.

She took over as chairman in 2007 and led the spinoff of Yum Brands Inc. as well as acquisitions of Tropicana and Quaker Oats. She has fended off calls to break up the company and has pushed into healthier snacks and beverages.

“There is no heir apparent,” she said. “When the time comes for succession, whenever it is, I think the wonderful thing is our board is going to have so many people to choose from.”

Mr. Laguarta, 53, a native of Please see PEPSI page B2

INSIDE

The dot-com mania in technology stocks and the 2008 peak in energy stocks stand out. The S&P 500 tech sector is finally above its 2000 high, but it's hard to see overvaluation in any sector today.

S&P 500 sector performance since September 1989* 1,500%

Health care Technology Energy Financials Other sectors

1,000 500 0 1989 ’90

’95

2000

’05

’10

’15

Microsoft Forges Ahead In Cloud

BY JAY GREENE Microsoft Corp. continued its rebirth as a force in cloudcomputing, posting strongerthan-expected gains in its business of selling web-based services to corporate customers.

The software giant has been working to expand that business, and now has solidified its spot as the No. 2 provider of on-demand computing processing and storage behind market pioneer Amazon.com Inc. In its just-ended fiscal fourth quarter, Microsoft notched gains in its Azure cloud-computing business and Office 365, the online version of its widely used productivity software.

The Redmond, Wash., company said Thursday that revenue in its Intelligent Cloud segment, which includes Azure, rose 11% to $7.4 billion. In the Productivity and Business Processes segment, which includes the Office franchise, revenue climbed 21% to $8.4 billion.

Microsoft doesn’t disclose revenue figures for its Azure and Office 365 businesses, but it said Azure revenue jumped 97% and Office 365 revenue rose 43%.

11%

Rise in revenue for company’s Intelligent Cloud segment

Performance since March 2009 low 500% 400

Financials Technology Health care Energy Other sectors

300 200 100 0 2009

’10

’11

’12

’13

’14

’15

’16

’17

One-year performance gap, best vs worst S&P 500 sectors 75 pct. pts.

50 25 0 1990

’95

2000

’05

’10

*Real estate excluded due to short history Source: Thomson Reuters Datastream

market low of March 2009: Since then, financials and tech-stock prices have both risen a bit more than 390%, as bank failure risk was priced out; including dividends, the real-estate, financials and consumer discretionary stocks are all ahead

’15 THE WALL STREET JOURNAL.

of tech over the period.

It is true that some tech stocks are in other sectors, distorting the measure. Amazon is classed as retail, and its stellar performance generated about a fifth of the consumer discretionary sector’s gains since the 2009 low—

and half this year’s gains.

But the financial sector rally has been about traditional banking and insurance—not fintech—while real estate is as offline as a stock can be.

Another way to judge exPlease see STREET page B2

“Azure was the primary source of our outperformance in the quarter,” Microsoft finance chief Amy Hood said in an interview. “It’s higher than I was expecting.”

Overall, Microsoft posted $6.51 billion, or 83 cents a share, in profit for the quarter ended June 30, compared with a profit of $3.12 billion, or 39 cents a share, a year earlier.

Excluding the impact of revenue deferrals and other items, adjusted earnings climbed to 98 cents from 69 cents. Pershare earnings in the most recent quarter included a 23-cent tax benefit related to the winding down of Microsoft’s mobile-phone business.

Total revenue rose 13% to $23.32 billion and was $24.7 billion when adjusted to reflect Windows 10 revenue deferrals.

Analysts surveyed by S&P Global Market Intelligence expected Microsoft to report adjusted per-share earnings of 71 cents, a figure that didn’t include the 23-cent tax benefit, on $24.29 billion in adjusted revenue.

Please see CLOUD page B2

Life Insurance Doesn’t Begin at 100

BY LESLIE SCISM

FIRST THING, LET’S RANK ALL THE LAWYERS LAW, B6

VISA CHARGES AHEAD ON TARGETS FINANCE, B10

When Gary Lebbin turns 100 years old in September, hanging over any celebration will be one very costly fact: His life insurer aims to cancel two policies totaling $3.2 million in death benefits.

The Lebbin family has run up against a provision that exists in many life insurance policies. Policies have expiration dates, and the one in the Lebbin family’s two contracts is age 100 for the policyholder.

It is a standard feature of permanent life insurance, a product combining a tax-deferred savings component with a tax-free death benefit.

The provision calls for the termination of the death benefit and payout of all of the built-up savings when the policyholder reaches the specified age.

The limits weren’t an issue in the many decades when very few people lived beyond 100. But they increasingly are a problem for the U.S. life insurance industry as more people become centenarians.

LEBBIN FAMILY

BY JENNIFER MALONEY

U.S. technology stocks have finally passed their 17-year-old bubble-era high, and the speed of this year’s rally has many—including me—concerned. The S&P 500’s information-technology sector is up 23%. Of the 10 stocks adding the most market value, eight are tech stocks, when Amazon.com is included. Those who missed out surely regret it.

But take a step back, and a lot of the gains look more like catch-up than bubble. There might be an everything bubble, but neither tech stocks nor megacapitalization companies stand out as particularly frothy when looking at performance.

In the past, froth was obvious. In the dot-com bubble of 2000, the tech sector produced clearly unsustainable returns—annualized at 53% including dividends for five years—that were miles ahead of everything else. In the “peak oil” bubble of 2008, the energy sector had similarly unrealistic five-year annualized gains of 31%.

There has been nothing like this in recent years. It is true that tech stocks have been wonderful for investors this year, particularly the big names of Alphabet, Amazon, Apple, Facebook and Microsoft. But they were mostly just catching up with underperformance in the aftermath of the election, when Silicon Valley was obviously out of favor with the new president, and hopes of tax cuts boosted companies that actually pay U.S. tax.

Look instead at one-year or five-year performance and the tech sector is in line with the financial sector. Or go all the way back to the stock-

See more at WSJMarkets.com

Gary Lebbin is nearing 100. Transamerica has told him his life insurance policy will be terminated.

There were an estimated 53,364 centenarians in the U.S. as of 2010, up from 37,306 in 1990 and 32,194 in 1980, according to a U.S. Census report published in December 2012.

Since the middle to latter part of the last decade, the industry has used age 121 as the

standard maturity date in new contracts. But an unknown number of older contracts with the 100-year-old limit remain in consumers’ hands.

Some insurers previously offered older policyholders the opportunity to extend the age in their older policies with

varying financial terms.

The Lebbin family’s insurer, a unit of Transamerica Corp., didn’t offer an extension.

Lawrence Rybka, president of insurance brokerage Valmark Financial Group in Akron, Ohio, worries many peoPlease see LIFE page B2

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B2 | Friday, July 21, 2017

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

Aegon..........................B2 Alphabet ................ B1,B2 Amazon.com........B1,B12 American Express ............................. A2,B11 Anheuser-Busch InBev .....................................B2 Apollo Global Management.............B3 Apple.........................B10 ASG Security .............. B3

B Bank of New York Mellon.....................B10 Bed Bath & Beyond..B12 Best Buy ................... B11 Blackstone Group B3,B10 Boring..........................B4 BP................................B3

C

Energy Transfer Partners..................B12 Exxon Mobil................A1

F

Q

Facebook......................B1 FelCor Lodging Trust..B3 Franklin Resources ..... B4

Qualcomm.................B11

G Geely Automobile Holdings....................B6 General Motors...........B6 Goldman Sachs Group ...................................B10

H-I Home Depot..............B11 iHeartMedia................B4

J-K J.P. Morgan Chase....B10 Kraft Heinz ................. B3

L

Capital One Financial ...................................B10 Chipotle Mexican GrillB3 Citigroup....................B10

D Dalian Wanda Group..A2 Discover Financial.....B10

E Eaton Vance................B4

PepsiCo........................B1 Protection 1................B3 Publicis Groupe...........B3

Lowe's.......................B11

M Mallinckrodt..............B12 Microsoft.....................B1 Murphy Oil................B12

N-P Neuralink.....................B4 Northern Trust..........B10 PayPal Holdings........B10

R RLJ Lodging Trust ...... B3

S Sears Holdings..........B11 Shanghai Hode............B4 Sherwin-Williams.......B3 Singapore Exchange . B11 SpaceX.........................B4 Sunac China Holdings A2

T Tesla ................. B2,B4,B6 Thomas H. Lee............B4 Transamerica...............B1 Twitter ........................ B4

U-V Unilever.......................B3 Valspar ........................ B3 Visa............................B10 Volvo Car.....................B6

W-Z Wal-Mart Stores.......B10 Wells Fargo...............B10 Zhejiang Geely............B6 Zillow Group ............... B2

INDEX TO PEOPLE A

Gibbons, Todd ........... B10

B Barth, Brett................A1 Barwell, Richard ....... B12 Brenner, Jonathan......A2

C Chavez, Martin ......... B10 Crowl, Sandra............B11

M

Hassell, Gerald..........B10 Heisman, Eileen..........A2 Iannelli, Andrea ........ B12 James, Hamilton “Tony” ...................................B10 Jianlan, Wang.............A1

Moszkowski, Guy......B10 Musk, Elon..................B4

D Das, Arnab................B11 Drogen, Leigh............B12

E-G Eccleshall, Toby...........B6 Edwards, Tim..............B2

K-L Kelly, Al.....................B10 Kolko, Jed ................... A2 Laguarta, Ramon........B1 Larson, Cindy..............B6 Lebbin, Gary................B1 Lee, Thomas H............B4

RULES Continued from the prior page dates,” said Andy Green, managing director for economic policy at the liberal Center for American Progress.

The agencies’ leaders also could defend their inaction by citing other regulatory priorities and noting they could revive measures not included on the agendas outlined Thursday.

“The agenda gives you a sense of where the agency is going to focus its resources, but it is not dispositive about what it ultimately will or will not do,” said James Burns, a former senior SEC official who is now a partner at Willkie Farr & Gallagher LLP. The SEC’s updated agenda was crafted in the spring, when an acting executive, Michael Piwowar, ran the commission. Mr. Piwowar, who is back to serving as an SEC commissioner, said earlier this year that he wouldn’t prioritize Dodd-Frank rules. Mr. Clayton took office in May, so the agenda could further change in the fall when he issues an update.

Government efforts to restrict traders’ and bankers’ bonuses prompted a lobbying counteroffensive by Wall Street. Financial regulators in turn have struggled for years to craft the joint rule, which Democrats in Congress intended to restrain risk taking at big banks and brokerage firms.

The proposal was excluded from the SEC’s agenda as well as lists disclosed by the Office of the Comptroller of the Currency and Federal Deposit Insurance Corp. However, the Federal Reserve maintained the proposal on its agenda.

LIFE Continued from the prior page ple may unexpectedly lose out.

At least seven people have recently contacted his firm with questions about older policies with maturity dates of 95 to 100 years. “Contract language of this type was common practice,” he said.

Faced with the potential loss of coverage, Mr. Lebbin’s family filed suit in federal court in Maryland this month, accusing Transamerica of knowingly using a too-low age at the time of sale in the early 1990s. The suit also alleges the insurer improperly marketed the policies as “coverage for life.”

The federal-court lawsuit says the Lebbins paid Transamerica more than $1.5 million in premiums over the years. It seeks revision of the contracts to allow coverage until Mr. Lebbin’s death. It also seeks an award including punitive and other damages.

Transamerica, a unit of the Netherlands’s Aegon NV, says it acted properly.

“We understand that Mr. Lebbin is disappointed that his

CLOUD Continued from the prior page Shares rose before slipping less than 1% to $73.80 in afterhours trading. The software giant’s shares closed at a record on Thursday, after setting its previous high a day earlier.

Microsoft’s quarterly growth in the so-called hyperscale public cloud market was faster than investors anticipated. The cloud unit is still smaller than Amazon in the market but appears to be pulling away from Alphabet Inc.’s Google, said Stifel Nicolaus & Co. analyst Brad Reback.

“They are the undisputed No. 2 in the hyperscale public cloud market, and it will be extraordinarily difficult for anyone to catch them,” Mr. Reback said.

Two years ago, Microsoft forecast its commercial-cloud run rate—the last month of sales of its Azure and Office 365 products, multiplied by

12—would top $20 billion in its 2018 fiscal year, which began July 1. At the end of the fourth quarter, the run rate stood at $18.9 billion.

“Obviously, we’re feeling pretty confident about hitting” the target, Ms. Hood said.

The strides Microsoft has made in the cloud come as its legacy Windows operating-system business shrinks. Revenue in its More Personal Computing segment, which includes Windows as well as the mobilephone and gaming businesses, slid 2% to $8.8 billion. Last week, International Data Corp. reported world-wide PC shipments fell 3.3% in the second quarter, while Gartner Inc. estimated the drop at 4.3%.

Revenue for Microsoft’s Surface line of computers also fell 2%. In the company’s fiscal third quarter, that business was hit hard, registering a 26% revenue decline, which the company attributed to older Surface computers in the market, as well as increased price competition.

Since then, Microsoft has introduced a new Surface laptop for the education market and an update to its Surface Pro tablet-laptop hybrid device, though those products made their debut with just a few weeks left in the recent quarter.

The strides it has made in the cloud come as its Windows business shrinks.

LinkedIn Corp., the professional social network Microsoft acquired last December for $27 billion, added $1.07 billion in revenue and posted a $361 million operating loss.

Microsoft is working to connect its business products to LinkedIn, giving sales representatives using its Dynamics software, for example, tools to easily mine the professional

social network to prospect for leads.

Like its cloud rivals Amazon and Google, Microsoft is spending lavishly to build giant and expensive data centers around the world to deliver its cloud services. In the quarter, Microsoft spent $3.3 billion on capital expenses, with much of that money going toward its data-center expansion. A year ago, Microsoft had $3.1 billion in capital expenses.

In the current quarter, Microsoft expects revenue in its Intelligent Cloud business of between $6.9 billion and $7.1 billion, up from $6.38 billion a year earlier. Revenue in its Productivity and Business Processes segment should land between $8.1 billion and $8.3 billion, including about $1.1 billion from LinkedIn. A year earlier, that segment posted $6.66 billion. Microsoft said the More Personal Computing segment’s revenue will be between $8.6 billion and $8.9 billion, compared with $9.29 billion a year ago.

Legate, Fiona..............B3

H-I-J

Abdalla, Zein...............B1

BUSINESS & FINANCE

N Neves, Joäo Castro.....B2 Nooyi, Indra.................B1

P Piwowar, Michael ....... B1 Prabhu, Vasant ......... B10 Pradere, Gilles .......... B12

R-W Roberts, Jennifer......B10 Rybka, Lawrence.........B1 Wiggs, Justin............B11

An SEC spokesman declined to comment on the extent to which the commission has stopped working on the congressionally mandated rules.

The Federal Reserve declined to comment.

The restrictions would have required the biggest financial firms to defer payment of at least half of executives’ bonuses for four years, a year longer than what is common industry practice.

The plan also would require a minimum of seven years for the biggest firms to claw back bonuses if it turns out an executive’s decisions hurt the institution or if a firm has to restate financial results.

Wall Street bonuses have come down significantly since the financial crisis, when record payouts against the backdrop of a worsening economy and bailed out banks heaped public and political scorn on the financial sector.

The average Wall Street bonus rose 1% in 2016 to $138,210, according to a March estimate from New York state Comptroller Thomas P. DiNapoli.

That is 28% lower than the peak hit in 2006.

The newly released SEC agenda also dropped mention of a rule that would require public companies to disclose a standardized metric comparing executive pay with stock performance.

It also omits any mention of other unfinished Dodd-Frank rules that govern trading of swaps, a type of contract that allows investors to bet on asset prices without owning the underlying stock or bond. The global swaps market is dominated by large banks such as Goldman Sachs Group Inc. and Citigroup Inc. —Rachel Witkowski contributed to this article. life insurance coverage will shortly come to an end. However, his policies, according to their terms, pay benefits only if he were to pass away before the policies’ anniversaries nearest age 100.…We take seriously our obligations to the millions of customers who rely on the solutions we provide and we abide fully by the terms and conditions of our policy contracts,” the company said.

In terminating the policy, Transamerica said it would pay Mr. Lebbin the built-up “net cash value,” or savings. That is as per contractual terms.

It is unclear how much cash value there is, said James Bainbridge, a lawyer for the family. Industrywide, many of these policies have performed poorly in recent years because interest buildup is tied to the insurers’ bond investments, and low interest rates have had a punishing effect. Upon termination of the policies, the Lebbin family would collect less money and potentially pay taxes, while a future $3.2 million death benefit would be tax-free, Mr. Bainbridge said.

Ironically, policy maturity dates were born as a way to help consumers get a reason-

PEPSI Continued from the prior page Barcelona, joined the company in 1996 and has spent most of his career rising through the ranks of the European operations. He has an M.B.A. from Spain’s ESADE business school.

He speaks English, Spanish, French, German, Greek and Catalan and will relocate to the U.S. from Geneva in his new role.

Mr. Narasimhan, 50, was previously a senior partner at McKinsey & Co., where he spent 19 years before joining PepsiCo in 2012. He worked as senior vice president and finance chief at PepsiCo Americas Foods before rising to Latin America chief in 2014.

Ms. Nooyi said she wanted Mr. Laguarta, whom she called “a great operating executive,” to gain experience at the corporate headquarters, where his mandate will be to increase sales and productivity to fund investments, she said.

Meanwhile, she said she wanted to push Mr. Narasimhan to “lift and shift ideas” across Europe, Africa and Latin America to accelerate his divisions’ growth. He has “evolved from brilliant strategist to a very good operating executive,” Ms. Nooyi said.

As Mr. Laguarta takes on some of Ms. Nooyi’s responsibilities, she said she would turn her focus to PepsiCo’s future.

CHRIS RATCLIFFE/BLOOMBERG

A

THE WALL STREET JOURNAL.

* ****

A U.K. plant. Indra Nooyi wants Laxman Narasimhan to ‘lift and shift ideas’ in Europe and elsewhere.

Anheuser-Busch Steps Into Soda And Juice Market Just as the soda giants are going after startups making healthy, nonalcoholic fizz, so too is Anheuser-Busch InBev NV. After signing a deal last year with Starbucks Corp. to sell ready-to-drink tea, the world’s largest brewer on Thursday said it is acquiring Hiball Inc., a San Francisco-based company making organic energy drinks and carbonated juices and water. Terms of the

deal weren’t disclosed.

João Castro Neves, chief executive of AB InBev’s U.S. subsidiary Anheuser-Busch, said the company and its U.S. wholesaler network were looking for new opportunities in nonalcoholic beverages.

“We’re looking for high growth, high margins,” he said.

Energy drinks and sparkling water fit the bill, he said. Hiball was a “natural place to go.”

AB InBev in Latin America sells a range of energy drinks, soft drinks and teas. Its latest step toward a similar expansion in the U.S. is a modest one. Hiball, founded in 2005, has 20

employees. It had retail sales of about $40 million over the last 12 months, according to a person familiar with the matter. Its products include Hiball Energy, a line of caffeinated drinks with ingredients such as guarana and ginseng, and Alta Palla, a line of sparkling juices with organic and fair-trade ingredients.

AB InBev has been broadening its U.S. portfolio toward craft beers, Mexican imports, wine and spirits. Nonalcoholic drinks represent about 13% of AB InBev’s global volume. In the U.S., the percentage is negligible, a spokeswoman said.

—Jennifer Maloney

Continued from the prior page cessive enthusiasm for disruptive companies should be to look at the losers. Old-style retail stocks, owners of U.S. malls and more recently stocks such as Zillow, facing rumors of competition from Amazon, have all been hammered.

Have they been driven down too far? Taking the gap between the best- and worstperforming sectors offers a measure of how powerful investment fashions are, and it is wider than usual at the moment. Yet, it doesn’t back up

the disruption theory.

Over the past year, the best sector has outperformed the worst by more than 50 percentage points, the second-widest gap since the recovery from the crisis in 2009.

In the 2000 bubble the gap reached 124 points, and in 2008 energy was 66 percentage points ahead of the worst sector (real estate, where the property-price crash was already under way).

Yet, if this wide gap between the best and worst sectors is a reason to worry, it isn’t a reason to worry about tech, since financials edged it out as the best-performing over the past year, just.

The worst performers were telecom, disrupted by an old-fashioned price war, and energy, disrupted by OPEC and shale.

Perhaps enthusiasm for disruption doesn’t show up between sectors, though. Amazon is disrupting retail, and new technologies are being deployed in many other sectors, too.

If investors were betting on the disrupters and against the disrupted, we should expect to see a big gap between the best and worst performers within sectors. We don’t.

Tim Edwards at S&P Dow Jones Indices calculates a measure known as dispersion showing how much variation

there is in stock performance.

Only in the industrial and financial sectors is it higher than the long-run average, and even within consumer discretionary, the effect of Amazon isn’t visible, with dispersion slightly below average.

I think investors give Amazon and Tesla way too much credit as disrupters, but being overpriced isn’t the same thing as being in a bubble.

There could be an everything bubble lifting the entire market, but stock performance doesn’t suggest overenthusiastic investors have inflated a tech bubble or even a broader bubble of disrupters. Yet.

able value out of a policy after years of ownership but before a death, said Paul Graham, a senior actuary with the American Council of Life Insurers.

To calculate monetary values and set annual premium levels, “you have to have an end point,” he said.

By the middle of the last decade, a new mortality table was available that established 121 as the new maturity age to help prevent an abundance of policies maturing before death, said Mr. Graham.

“The agents didn’t want the policies maturing before people were dying, the companies didn’t want it happening, and policyholders didn’t want it happening,” he said.

The policies taken out by the Lebbins are called universal life. They are a popular form of permanent life insurance. Permanent life stands in contrast to basic “term” life, which is sold to provide a payout if a death occurs within a specified period, usually 10 to 30 years.

The suit alleges Transamerica marketed the policies as coverage that would insure the Lebbins for life and would guarantee they would have tax-free income with which their heirs could pay estate taxes. The lawsuit maintains that Transamerica established the maturity date with a 1980 mortality table “despite the fact that it was outdated and not an accurate reflection of the actual life expectancies of its customers.”

The Lebbins became aware last year of Transamerica’s intention to terminate the policies and unsuccessfully sought an extension of the contracts until Mr. Lebbin’s death, the lawsuit says.

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Friday, July 21, 2017 | B3

* * * *

BUSINESS NEWS

By Maureen Farrell, Dana Mattioli and Matt Jarzemsky The offering could value ADT at well over $15 billion, including debt, some of the people said, making it one of the largest IPOs of the year.

There is no guarantee a listing will take place, and the expected timing could slip.

Such planning is always subject to the whims of the volatile IPO market.

Should Apollo pull it off, the IPO would mark a quick turnaround for the privateequity firm, which began consolidating home-security providers two years ago. The New York firm bought Protection 1 and ASG Security simultaneously in 2015, put them together, and then used the combined company to acquire ADT for about $7 billion last year.

The former competitors were jointly valued at about $15 billion, including debt, Apollo said in May of last year.

That Apollo is already teeing up a sale is surprising and indicates the investment could prove to be lucrative.

Private-equity firms routinely buy a company intending to use it as a vehicle for additional acquisitions, but they rarely do so at such a quick pace and on such a scale.

The deals have already started to pay off. In February, an ADT unit sold $800 million in debt to finance a dividend to its owners.

ADT makes security products ranging from burglaralarm systems to wireless cameras for homes and businesses.

It has worked to position itself as a player in the smarthome market, which aims to connect consumers wirelessly to various household devices.

ADT was once part of the former Tyco conglomerate assembled by L. Dennis Kozlowski. ADT had merged with Tyco in the late 1990s in a roughly $5 billion deal.

Tyco used ADT’s Bermuda domicile to relocate abroad and lower its tax rate. In 2012, Tyco spun off ADT to shareholders in an effort to refocus the sprawling conglomerate’s operations.

Apollo, based in New York, was founded by veterans of junk-bond pioneer Drexel Burnham Lambert.

The firm is known for its willingness to make aggressive, sometimes contrarian, bets. Apollo recently raised $23.5 billion for the world’s largest-ever buyout fund.

IPO activity has picked up this year, with 94 companies raising $28.5 billion on U.S. exchanges, according to Dealogic.

That is nearly triple the volume at this point last year, when 48 companies had raised $10.6 billion amid the worst new-issue drought in more than a decade.

It isn’t clear whether the momentum will continue, however, especially after some recent debuts stumbled.

Offering Size The biggest U.S. IPOs this year by market value of issuer

Discussions are at an early stage, with private-equity firms among potential buyers LONDON—BP PLC has approached potential buyers of its oil-and-gas fields in the

By Sarah McFarlane, Matt Jarzemsky and Ben Dummett North Sea, people familiar with the matter said, a halfcentury after the company helped pioneer deep-water extraction there.

BP said it remained “committed to the U.K. North Sea,” which the British company sometimes calls its “heartland.” The company said it planned to ramp up its U.K. North Sea production to 200,000 barrels a day and pointed to important new developments there west of the Shetland Islands.

But the company has held discussions about selling the full range of its currently producing assets in the U.K. North Sea, people familiar with the matter said. The collection of oil-and-gas fields now produce the equivalent of about 150,000 barrels a day, with some nearing the end of their production lives.

The potential buyers include private-equity firms, the people said, which in recent years have swooped in to buy North Sea fields, lower their costs and extract profit.

The people said the talks were at an early stage, and it isn’t clear yet which fields BP would ultimately be willing to part with, if any.

“Our aim is to sustain a material business in the region for decades to come,” said BP, which produces more oil and gas from the British North Sea than any other company.

The value of the assets BP approached buyers about wasn’t known. Earlier this year, when BP’s British-Dutch

tion peaked in the 1990s.

Since the peak, however, it has become more expensive to extract the remaining barrels from aging fields. BP already sold part of its interest in the North Sea’s Magnus field to EnQuest PLC earlier this year.

“They can’t get the returns in the North Sea compared to more attractive, lower-cost opportunities globally,” said Fiona Legate, an analyst at Wood Mackenzie, the Scottish energy consultancy.

BP said it was firm about its commitment to the British North Sea. It is a major employer in Aberdeen, the Scottish port where its North Sea operations are based.

BP is under pressure to raise cash this year to pay for continuing costs related to the Deepwater Horizon

Northern Exposure U.K. North Sea oil production by the largest producers, in thousand barrels a day 2017 oil production forecasts* BP

154

Total

151 124

Chrysaor Shell Nexen (CNOOC)

114 106

*Includes oil equivalents Source: Wood Mackenzie

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blowout that killed 11 people in 2010 and spilled millions of barrels of oil into the Gulf of Mexico. The company wants to raise $5.5 billion with various divestments this

year. It is considering spinning off some of its U.S. pipelines into a separate public company.

BP is moving into a period of growth, which may require it to shed some of its older North Sea assets, said Oswald Clint, analyst at Sanford C. Bernstein.

“It’s the same as Shell; they’re selling producing assets, but not development or growth assets,” Mr. Clint said.

Selling assets in the U.K. North Sea isn’t straightforward. It costs billions to dismantle and dispose the North Sea oil rigs when the fields are fully tapped. As part of its deal to sell North Sea fields this year, Shell agreed to pay up to $1 billion in decommissioning costs.

—Sarah Kent contributed to this article.

Illness Reports Rise at Chipotle

BY JULIE JARGON

The acquisition of Valspar is proving more expensive than Sherwin-Williams had anticipated.

PUBLICIS GROUPE

UNILEVER

SHERWIN-WILLIAMS

North America Boosts Results

Earnings Increased Steeply in First Half

Valspar Costs Are More Than Expected

Publicis Groupe SA kicked off earnings season for ad-holding firms with better-than-expected results that showed an improvement in its North American business.

Revenue in the second quarter amounted to €2.52 billion ($2.9 billion), reflecting a rise of 0.8% on an underlying basis compared with the same period last year. Analysts had projected a 0.5% decline.

The numbers were lifted by the company’s North America business, where year-on-year organic revenue returned to positive territory, increasing 0.2%.

—Nick Kostov

Unilever PLC on Thursday reported a sharp rise in firsthalf profit and forecast betterthan-expected margins for the full year, making good for now on its promise to improve its performance after fending off a $143 billion takeover approach from Kraft Heinz Co. this year.

For the six months to June 30, Unilever reported net profit attributable to shareholders of €3.11 billion ($3.58 billion), up from €2.51 billion in the same period last year. Revenue rose to €27.73 billion from €26.28 billion.

The Anglo-Dutch company raised its forecast for full-year profit margins.

—Rory Gallivan

Sherwin-Williams Co.’s $9.3billion takeover of fellow paintmaker Valspar isn’t going as smoothly as planned.

Sherwin-Williams cut its fullyear earnings outlook by more than a dollar and said integration costs would be over six times more expensive than previously anticipated.

The company now expects a $2.50 per-share charge for the year related to the acquisition, compared with a prior estimate of a 40-cent per-share charge. It now sees annual earnings of $12.30 to $12.70 a share, down from $13.65 to $13.85 a share forecast in April.

—Imani Moise

Chipotle Mexican Grill Inc. on Wednesday reopened a location in Virginia it temporarily closed this week, although reports of illness associated with that store last week continue to rise.

The chain closed the Sterling, Va., restaurant on Monday after learning of anonymous complaints posted on iwaspoisoned.com from a small number of customers who complained of getting sick after eating there. The company said it conducted a “thorough sanitization” of the location, saying it suspected the culprit was norovirus, a common virus that can be spread through food that has been handled by people who are sick.

As of Thursday afternoon, Patrick Quade, the founder of the food-poisoning website, said the site had received reports of 137 people sickened at the Sterling Chipotle.

“We know that maintaining the highest level of safety in all of our restaurants is incumbent upon us. I made a commitment on behalf of Chipotle to make our restaurants the safest place to eat, and I am confident in the programs and procedures we have implemented,” Chipotle founder and Chief Executive Steve Ells said in a statement, referring to the many changes Chipotle has made to its food-safety system in the last two years.

On Tuesday, Jim Marsden,

Chipotle’s executive director of food safety, said: “Norovirus does not come from our food supply, and it is safe to eat at Chipotle.”

Chipotle is working with the local health department, which is investigating the cause.

Dr. David Goodfriend, director of the Loudoun County Health Department, which handles reports of illnesses in Sterling, said on Thursday morning that his office so far had received approximately 60 reports of people getting sick from the Chipotle location in question but that food-borne illnesses tend to be underreported, especially in cases when people recover quickly.

“Our expectation is that the number of people who were sickened last week will go up as people let us know,” Dr. Goodfriend said.

He said the symptoms and time span of the reported illnesses is consistent with norovirus but that the department won’t have preliminary results from stool samples collected from customers until Friday at the earliest. “We have no indication at this point that it was anything from the food supply chain, but we are looking at that,” he added.

Mr. Quade said he is closely monitoring illness reports coming to his website from different Chipotle restaurants in Virginia and Maryland but says it is too early to determine if those might constitute other outbreaks.

Blackstone Made $3 Billion Bid for RLJ REIT

BY CRAIG KARMIN

Snap March 1 20.0 Invitation Homes Jan. 31 6.3 Ardagh Group March 14 4.5 Antero Midstream May 3 4.4

Blackstone Group LP recently made a roughly $3 billion bid to acquire RLJ Lodging Trust, a move that if successful would end RLJ’s agreement to acquire rival hotel investor FelCor Lodging Trust Inc. RLJ said in a securities filing Monday that it had rejected a $24-a-share offer from an unnamed private-equity

THE WALL STREET JOURNAL.

rival Royal Dutch Shell PLC sold stakes in U.K. North Sea fields that produce about 115,000 barrels a day, the assets fetched $3.8 billion.

The talks come as BP and other big energy companies reassess their portfolio of oiland-gas fields while the crudeprice downturn enters its fourth year. With prices stuck around $50 a barrel, BP, Shell and others have been looking to ditch oil fields that are nearly tapped out for cheap, quicker-hit options like U.S. shale.

The North Sea is a prime example. BP has been a leader in the North Sea since the mid-1960s, when exploration and production began. Along with Shell and others, BP helped make it one of the world’s premier oil basins in the 1970s and ’80s; its produc-

BUSINESS WATCH

Altice USA June 21 $22.1 billion

Note: Post-deal market value includes overallotment Source: Dealogic

Queen Elizabeth II at the launch in 1975 of the flow of oil from the North Sea to one of the company’s refineries.

PATRICK T. FALLON/BLOOMBERG NEWS

Private-equity firm Apollo Global Management LLC is preparing an initial public offering for ADT, just a year after it bought the home-security company.

Apollo could file paperwork for the offering with the Securities and Exchange Commission by the fall and list the shares around the end of the year, according to people familiar with the matter.

BP in Talks to Sell North Sea Assets

ANDY BUCHANAN/AGENCE FRANCE-PRESSE/GETTY IMAGES

Apollo Readies Offering For ADT

firm.

That party was Blackstone, people familiar with the matter said Thursday. It isn’t clear if Blackstone intends to make another offer.

RLJ and FelCor, both realestate investment trusts, in April agreed to merge in a deal that would create an entity valued at about $4.2 billion and house about 160 hotels.

RLJ, which owns about 120 hotels with brands like Mar-

riott and Hilton, disclosed that it had received the unsolicited proposal on June 12 from a private-equity investor that offered to buy the lodging company without FelCor. After RLJ rejected the bid as “not reasonably likely” to be superior to its plan to acquire FelCor, the private-equity firm twice raised its offer, eventually reaching $25.50 a share on June 23, the filing said.

RLJ’s board then said it would consider the offer.

But after the private-equity firm conducted an additional examination of RLJ, it resubmitted its bid on July 6 at the original price of $24. RLJ’s board rejected that offer.

RLJ shares surged Monday on news of the bids, but have since given back most of the gain and closed Thursday at $20.17.

RLJ is expected to put its all-

stock acquisition of FelCor to a shareholder vote in August.

FelCor, owner of about 40 hotels including New York City’s Knickerbocker Hotel at Times Square and the Fairmont Copley Plaza in Boston, had fended off a hostile bid from Ashford Hospitality Trust Inc., another upscale hotel owner, before agreeing to be bought by RLJ. —David Benoit contributed to this article.

B4 | Friday, July 21, 2017

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TECHNOLOGY

WSJ.com/Tech

CHINA CIRCUIT | By Li Yuan

Video Websites and Fans Feel Beijingâ&#x20AC;&#x2122;s Chill In the Chinese governmentâ&#x20AC;&#x2122;s relentless policing of the internet, political news and discussions draw heavy scrutiny while entertainment has generally been given wide leeway. As a result, many Chinese millennials grew up watching videos of South Korean soap operas, American TV shows and Japanese animation series.

This generation spends a lot of time watching videos of sports and entertainment; research firm Analysys International says over 70% of Chinaâ&#x20AC;&#x2122;s mobile-video users are under 30 and nearly three-quarters of them watch at least one to two hours of video daily. Many take little note of politics.

Their indifference is being shaken up. Under President Xi Jinpingâ&#x20AC;&#x2122;s more assertive guidance, the Communist Party is trying to instill patriotism and reinsert ideology into public life. Instead

of American TV comedies, Beijing wants Chinese youth to watch revolutionarythemed series and other politically inspiring fare.

The effect is unsettling for many young Chineseâ&#x20AC;&#x201D;and for the online companies building businesses catering to them. â&#x20AC;&#x153;It feels like the government is yelling into your ears about its existence every day now,â&#x20AC;? says Gloria Liu, a 23-year-old law graduate student in the northeastern city of Changchun.

S

torm clouds have been gathering for some time. Earlier this year, Chinese video websites pulled popular South Korean music videos and TV dramas after Beijing clashed with Seoul over its deployment of a U.S. missile-defense system. Last month, after meeting with regulators, socialmedia sites deleted many entertainment accounts.

The real blow came last week when video-streaming

sites Bilibili and AcFunâ&#x20AC;&#x201D; popular among teenagers and young Chineseâ&#x20AC;&#x201D;removed most of their U.S., U.K., Japanese and South Korean movies, TV dramas and shows to comply with what they say are regulatory requirements.

On social media, young people said they were

The Communist Party is trying to reinsert ideology into public life. â&#x20AC;&#x153;shockedâ&#x20AC;? and â&#x20AC;&#x153;confusedâ&#x20AC;? and â&#x20AC;&#x153;powerlessâ&#x20AC;? when they found out their bookmarked videos on those sites had disappeared overnight.

Bilibili says all of its film and TV content is being reviewed to ensure it meets regulatory standards and that foreign films and TV shows comprise only about

10% of all content. AcFun says the company is making changes based on the regulatorâ&#x20AC;&#x2122;s guidance and its site wonâ&#x20AC;&#x2122;t carry any illegal or inappropriate content.

The State Administration of Press, Publication, Radio, Film and Television didnâ&#x20AC;&#x2122;t respond to a request for comment.

This curtailing of content is hitting businesses that, according to industry people, arenâ&#x20AC;&#x2122;t yet profitable.

Both Bilibili and AcFun started out catering to animation fans and then expanded into more mainstream content. Viewers can post real-time comments that scroll across the screenâ&#x20AC;&#x201D;a huge draw for the young audience.

Bilibili, founded in 2009 and owned by Shanghai Hode Information Technology, says it has 150 million monthly active users, threefourths of whom are below the age of 24. AcFun, which was launched in 2007 and has Alibaba Group Holdingâ&#x20AC;&#x2122;s

Youku Tudou video site as an investor, declined to disclose user numbers. Both companies, which rely on advertising and games for revenue, declined to comment on their profitability.

T

he latest crackdown, if sustained, is likely to affect their revenues, according to investors. It has already poured cold water on investing in other online entertainment startups, one of the hottest plays over the past two years because of the demand from millennials.

Investors feel â&#x20AC;&#x153;anxious and powerlessâ&#x20AC;? about the current situation, says a venture capitalist whose fund suspended negotiations with startups creating online entertainment content.

Upset fans arenâ&#x20AC;&#x2122;t taking to the streets; so far their protests are confined to social media. But the forced changes to their viewing diets are causing some to rethink their relationship with a government seen largely as

a distant presence until now.

Ms. Liu, the law student, views herself as patriotic, like many of her generation.

Sheâ&#x20AC;&#x2122;s also a fan of South Korean pop culture, especially the band EXO. She taught herself Korean and uploaded subtitled shows and media coverage of the band on Bilibili. Now, she says, the website no longer allows uploading of these videos.

Frank Guo, a marketing executive at an online-game company in the southern city of Guangzhou who studied in Ireland, says he doesnâ&#x20AC;&#x2122;t understand why the government doesnâ&#x20AC;&#x2122;t trust people to be responsible for their own viewing behavior.

Like Ms. Liu, Mr. Guo thought the government was a remote force. â&#x20AC;&#x153;Now itâ&#x20AC;&#x2122;s infiltrating every detail of your life, including what entertainment you watch,â&#x20AC;? he says.

Follow Li Yuan on Twitter @LiYuan6 or write to li.yuan@wsj.com.

Fight at iHeart Reaches Pivotal Point

Elon Musk has long talked about his desire to eventually create a so-called hyperloop, a high-speed, tunnel-based travel system.

Elon Muskâ&#x20AC;&#x2122;s New Tunnel Vision

BY TIM HIGGINS

Billionaire entrepreneur Elon Musk, known for his teasing tweets and ever-expanding list of high-tech ambitions, set observers abuzz again with a vague claim he received â&#x20AC;&#x153;verbalâ&#x20AC;? approval for a high-speed, tunnel-based travel system along one of the busiest corridors in the U.S. In a message Thursday on his official Twitter account, Mr. Musk said he had â&#x20AC;&#x153;Just received verbal govt approvalâ&#x20AC;? to build a â&#x20AC;&#x153;Hyperloopâ&#x20AC;? along the East Coast that could deliver people from New York to Washington in 29 minutes.

Amtrakâ&#x20AC;&#x2122;s Acela Express travels between New York and Washington in slightly less than three hours.

He didnâ&#x20AC;&#x2122;t immediately say which government agency or official had given approval, or elaborate on issues such as timing or cost, but later added he aimed to build similar systems in suburban Los Angeles

and Texas. Infrastructure projects of large sizes often take yearsâ&#x20AC;&#x201D;if not decadesâ&#x20AC;&#x201D;to receive government approvals. â&#x20AC;&#x153;Still a lot of work needed to receive formal approval, but am optimistic that will occur rapidly,â&#x20AC;? Mr. Musk wrote.

A spokesman for Mr. Muskâ&#x20AC;&#x2122;s tunnel venture, the Boring Co., said in a written statement that the company has had â&#x20AC;&#x153;promising conversationsâ&#x20AC;? with local, state and federal government officials, without disclosing names. He added that the company expects to receive formal government approvals to â&#x20AC;&#x153;break groundâ&#x20AC;? later this year.

The Transportation Department referred questions about the hyperloop to the White House, which confirmed conversations with Mr. Musk and other Boring Co. executives.

But the White House didnâ&#x20AC;&#x2122;t say whether it had provided any kind of approval for the hyperloop.

A White House spokesman said in a statement: â&#x20AC;&#x153;We have

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$180 million but has faced delays in rolling out a prototype.

Mr. Muskâ&#x20AC;&#x2122;s tweets convey his wide-ranging interests. He is chief executive of electriccar maker Tesla Inc., which last year merged with energy company SolarCity, another business he backed. Mr. Musk also leads the rocket maker Space Exploration Technologies Corp.

In April, Mr. Musk announced plans for a new company called Neuralink Corp., where he also is CEO, aiming to merge computers with brains so humans could one day engage in â&#x20AC;&#x153;consensual telepathy.â&#x20AC;?

In his tweets Thursday, Mr. Musk said the hyperloop system, a network linking New York, Philadelphia, Baltimore and Washington, would be accessible from city centers. â&#x20AC;&#x153;Support would be much appreciated!â&#x20AC;? Mr. Musk said in one tweet. â&#x20AC;&#x201D;Eliot Brown contributed to this article.

Actress Hailee Steinfeld at an iHeartMedia event in December.

Twitter Claims Progress Against Abuse

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had promising conversations to date, are committed to transformative infrastructure projects, and believe our greatest solutions have often come from the ingenuity and drive of the private sector.â&#x20AC;?

Depending on the route, such a project could require approvals from five or six state governments, said Lynne Kiesling, associate director of Purdue Universityâ&#x20AC;&#x2122;s Research Center in Economics. Ms. Kieslingâ&#x20AC;&#x2122;s research includes the effect of regulatory institutions on technological change. â&#x20AC;&#x153;Stringing together five or six such approvals would be a long, costly and fractious process,â&#x20AC;? she said.

Mr. Musk has long talked about the creation of a socalled hyperloop, a system for high-speed transportation in a near-vacuum state that takes place in miles-long tubes.

Since Mr. Musk floated the idea in 2013, others have tried to commercialize the concept.

Hyperloop One has raised

A nearly two-year-long battle between iHeartMedia Inc. and a bondholder group led

by Franklin Resources Inc. is coming to a head in the wake of the companyâ&#x20AC;&#x2122;s proposal of a sweetened offer. A resolution to the standoff could allow iHeart to avoid bankruptcy.

In its battle to win over bondholders who hold the key to its fate, iHeart Communications has signed up a group of funds led by Eaton Vance Investment Management, Symphony Asset Management and OppenheimerFunds to convince holdersâ&#x20AC;&#x201D;especially Franklinâ&#x20AC;&#x201D;that it is better to take the new deal than push the company into bankruptcy, according to people familiar with the matter.

IHeart is one of the last of several companies taken over in the private-equity megadeals of a decade ago that is still grappling with debt it took on in its 2006 leveraged buyout by Thomas H. Lee Partners and Bain Capital.

The target companies in other big private-equity deals from that era that subsequently soured filed for bankruptcy long ago. These include Caesars Entertainment Corp. and Energy Future Holdings Corp., both of which are still making their way through chapter 11.

For months, iHeart had circulated an offer that hands over as much as 49% of the equity in both iHeart and its valuable Clear Channel Outdoor Holdings billboard unit to bondholders if a substantial group of them agree to extend maturities and take haircuts, or markdowns, on their debt. In that proposal, private equity owners Thomas H. Lee and Bain would hold on to a 51% stake. The proposal garnered little interest, and the holdout group, of which Franklin has the biggest slice of iHeart debt, has argued that they are entitled to more equity in both companies, according to the people familiar with the matter.

Earlier this week, the company disclosed details of talks with another group of bondholders led by Eaton Vance, Symphony and OppenheimerFunds over the new deal. In its revised proposal, iHeart is offering bondholders a number of sweeteners, chief among them an additional $500 million in debt backed by 51% of the shares in iHeart and in Clear Channel, according to public filings. The new slug of debt will effectively delay Thomas H. Leeâ&#x20AC;&#x2122;s and Bainâ&#x20AC;&#x2122;s ability to monetize their shares in the company until the debt is paid off, according to a person familiar with the matter.

AMY HARRIS/INVISION/ASSOCIATED PRESS

MONICA ALMEIDA/REUTERS

BY SOMA BISWAS

LEGAL NOTICES ADVERTISE TODAY (800) 366-3975 sales.legalnotices @wsj.com For more information visit wsj.com/classifieds Š 2017 Dow Jones & Company, Inc. All Rights Reserved.

BY GEORGIA WELLS Twitter Inc. said it has clamped down on harassment on its service, a campaign that is forcing the company to confront tricky questions about how it applies its standards.

Twitter suspends or restricts accounts for abusive content at 10 times the rate of a year ago, the company said during a media briefing at its San Francisco headquarters this week. Twitter declined to say how many of its 328 million monthly active users are affected.

Compared with the previous four months, Twitter over the past four months has removed twice as many new accounts created by repeat offenders banned for abuse, said Ed Ho, general manager of consumer product and engineering teams.

Over the past year Twitter has increasingly used artificial

intelligence to flag potential abuse, instead of leaving detection to users. This marks a drastic change for a company that had been loath to police its platform, former employees say.

But tweets posted by President Donald Trump on his per-

328M

Number of Twitterâ&#x20AC;&#x2122;s monthly active users

sonal account in recent weeks have raised the question of whether he is violating the social networkâ&#x20AC;&#x2122;s rules. In late June, Mr. Trump ridiculed the appearance of television news host Mika Brzezinski; in July, he posted a doctored video of

himself beating up a man whose face had been digitally altered to show the CNN logo.

Asked this week whether the site treats Mr. Trump like other users, Twitterâ&#x20AC;&#x2122;s head of trust and safety, Del Harvey, said, â&#x20AC;&#x153;We apply our policies consistently. Rules are rules.â&#x20AC;?

Those rules ban graphic content, threats of violence and the targeted abuse of others, though comments judged hateful or abusive can be exempted if they are deemed newsworthy. Twitter last year created a Trust and Safety Council to advise it. â&#x20AC;&#x153;The Trump tweets are a litmus test for folks in the safety council, folks who work for Twitter and observers on the outside,â&#x20AC;? said council member Stephen Balkam, founder of the nonprofit Family Online Safety Institute.

A spokeswoman for Twitter declined to comment on Mr.

Trump, citing a policy of not commenting on specific users.

The White House has defended the tweets. Deputy press secretary Sarah Huckabee Sanders said Americans â&#x20AC;&#x153;knew what they were getting when they elected Donald Trump.â&#x20AC;?

How Twitter applies harassment policies to public figures suggests the limits of its willingness to censor. â&#x20AC;&#x153;For our democracy, I think we should all see what Trump is saying,â&#x20AC;? said council member Danielle Citron, a professor at the University of Maryland School of Law who studies online harassment.

Other academics disagree.

Retired professor Michael Hawley, formerly of the Massachusetts Institute of Technology Media Lab, wrote to Twitter in early July urging a temporary ban on Mr. Trumpâ&#x20AC;&#x2122;s accounts, @realdonaldtrump and @potus, for violating the terms of service.

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Friday, July 21, 2017 | B5

Going further together to better serve you.

With the acquisition of Pioneer Investments, Amundi is one of the world’s 10 largest asset managers – and no. 1 in Europe.(1) Our goal is to offer better performance, solutions and services.

We achieve that through: • A comprehensive range of active, passive and real assets investment solutions • High quality service tailored to both retail and institutional clients • A global network and strong local presence • Insightful research to help clients realise opportunities We help you go further, because that’s what you expect from a trusted partner. $1.3 trillion in assets under management(2) 5,000 employees 37 countries 6 main investment hubs: Boston, Dublin, London, Milan, Paris and Tokyo

amundi.com (1) Source IPE “Top 400 asset managers” published in June 2017 and based on AUM as of end December 2016. (2) Source: Amundi and Pioneer Investments combined figures pro-forma as of end December 2016 provided for information purposes only, subject to change without prior notice.

Amundi Pioneer Asset Management is the US business of the Amundi Asset Management group of companies. Investment advisory services are offered through Amundi Pioneer Asset Management, Inc., Amundi Pioneer Institutional Asset Management, Inc., and Amundi Smith Breeden, LLC. Securities are offered through Amundi Pioneer Distributors, Inc. Not all Amundi products and services are available in all jurisdictions. amundi.com - July 2017. |

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B6 | Friday, July 21, 2017

BUSINESS NEWS

Time to Rank the Rankers of Lawyers?

Business of assigning awards to attorneys has gotten out of control, say some

Stroking lawyers’ egos has become big business.

A proliferation of attorney awards and rankings—more than 1,200 by one count—is inundating law-firm marketing departments, and an industry of consultants has popped up to guide firms through the submissions process.

Lawyers vie for rankings such as Super Lawyers, which touts its “patented selection process,” Lawdragon, self-described as “the most elite guide in the legal profession,” and Chambers and Partners, whose latest annual guide to U.S. lawyers came in at 3,239 pages.

There is also Best Lawyers, the Legal 500, Benchmark Litigation, Leading Lawyers, Martindale-Hubbell, Who’s Who Legal—and hundreds of others.

“It’s gotten out of control,” said Megan Braverman, a principal at Berbay Marketing & Public Relations, which tracks more than 200 contests for law-firm clients.

Another public-relations firm, Jaffe, says its list of 1,200 rankings and awards globally that include lawyers is up from 700 a decade ago.

Law firms spend $157,000 annually on average in employee time and expenses to complete awards submissions, according to a study released last year by the Legal Marketing Association, Law Firm Media Professionals and BTI Consulting Group. For larger firms, the average is $691,000, with one reporting spending $5 million.

Attorneys have received accolades for decades. Former Democratic presidential nomi-

ALLISON SCOTT/THE WALL STREET JOURNAL

BY SARA RANDAZZO

One public-relations firm says its list of 1,200 rankings and awards globally that include lawyers is up from 700 a decade ago. nee Hillary Clinton used to tout that she was one of the National Law Journal’s “100 Most Influential Lawyers” in 1988 and 1991.

But since the recession, the awards race has intensified, in part as legal-trade publications look to monetize honors to prop up revenue.

Many of the rankings are bestowed by trusted brands that vet lawyers’ reputations by calling clients and reviewing court victories or major deals. Even these can ask winners to pay $500 for plaques, $5,000 for advertisements or $10,000 for tables at awards banquets. Newer contests are often pay-to-play, requiring several-hundred dollar submis-

sion fees or even withholding awards if certain products aren’t purchased.

“A whole cottage industry has developed on playing off of lawyers’ egos and insecurities,” said the head of one large New York-based law firm. “It’s accelerating dramatically because people see that there’s money to be had.”

Many law firms say the awards do more to help internal morale than to acquire new business. In a 2016 survey of general counsel by BTI, 4.6% said they looked to the attorney directories first when hiring law firms, while 25% said they use them to confirm observations about a hire.

Chambers USA’s editor,

Toby Eccleshall, said they hear about clients who rely on the guide. “It’s not just intended to be a vanity project for lawyers,” he said. Super Lawyers, which awards the distinction to up to 5% of lawyers in each state, serves as a starting point to “help consumers navigate the legal realm,” publisher Cindy Larson said.

Faced with a stagnant supply of high-end litigation and corporate deal work, law firms see the awards as a way to distinguish themselves and get an edge on the competition.

Joseph Andrew, global chairman of 8,000-lawyer law firm Dentons, said awards have gained prominence as firms compete internationally

and recognize the value of sharing successes on social media. “If you’re the world’s largest law firm, you want to make sure you’ve won more awards than anyone else,” Mr. Andrew said.

Law-firm marketers say they have become accustomed to almost daily emails from partners forwarding awards pitches and asking some variation of “do we care about this?” One recently making the rounds to Manhattan attorneys congratulates them on their nomination as one of “America’s Top 100 Attorneys” in New York, listing 79 other lawyers who have already “accepted this honor” and a link to pay $1,000 onetime mem-

bership dues.

Topping that list is Gary Naftalis, a name partner at Kramer Levin Naftalis & Frankel LLP, a firm based in New York.

Mr. Naftalis, whose website bio lists dozens of honors he has received in his more than 40-year career representing chief executives and major corporations, said he didn’t know he was being used in promotional materials. “Look, obviously everybody has egos,” he said. “If you work hard, if you’re good at what you do, it’s nice to be recognized.”

Some marketing professionals are getting fed up with endless nomination requests and have begun to push back— and urge attorneys to be more discerning. Ms. Braverman said attendees cheered at a marketing conference earlier this year when a senior-in house lawyer said he didn’t care about rankings.

Kent Matsumoto, general counsel of specialty-paper maker Glatfelter, said he hires lawyers who show an interest in the industry and can serve as an extension of the company, qualities he says that can’t be ascertained in a lawyer directory.

As awards makers tap out the law-firm market, some have started conferring prizes on corporations’ law departments, then asking law firms to take out advertisements to congratulate their clients.

Edward Ryan, the general counsel of Marriott International, said he weighs the prestige and value of an accolade against the pressure it would put on law firms he hires to buy tables at awards dinners.

So, he politely declines some, but accepts others.

“It can be hard to celebrate your successes,” he said. “Recognition from an outside source really helps people say, wow, we did something special.”

Volvo Tightens Ties With Chinese Owner

GM Small-Car Plant Takes a Rest

BY WILLIAM BOSTON AND DOMINIC CHOPPING

Workers assembling General Motors Co.’s Tesla fighter are taking a month off this summer amid lukewarm demand, as American car buyers show little interest in vehicles that rely solely on battery power to get from Point A to B. The Detroit auto giant’s plant in Orion Township, Mich., began producing the Chevrolet Bolt late last year, with output hitting more than 15,000 vehicles before the company’s typical summer shutdown at the start of July. That break usually spans two weeks, but workers at the Bolt plant—also building the slow-selling compact Chevrolet Sonic—remain on vacation the third week of the month as inventories of both cars climb.

A GM spokesman, saying the shutdown stems from the oversupply of Sonics, said workers will return to the Orion assembly line on Monday. However, they will take another oneweek break in August.

The long layoff affecting the Bolt is unusual for a vehicle still considered to be in launch mode, and it delivers a blow to GM as Tesla Inc. is ramping up production of the Model 3, which is priced lower than its Chevrolet counterpart while offering a similar driving range on a single charge. The $35,000 Model 3, Tesla’s fourth model, already has amassed hundreds

the first traditional auto maker to abandon the conventional internal combustion engine that has powered the industry for more than a century.

The announcement of the joint venture with Geely Holding comes as the Gothenburg, Sweden-based automotive group confirmed it is on track to achieve record sales for a fourth year in a row.

Volvo, a niche player in the global luxury-car market, has staged a strong recovery since Geely Holding acquired it from Ford Motor Co. in 2010. The car maker, long known in suburban America for its safety and reliability, is trying to leverage its brand recognition to become a force in new technology such as electric cars, connected vehicles and selfdriving cars.

Volvo on Thursday said its second-quarter net profit rose to 1.56 billion Swedish kronor ($189.7 million) from 1.27 billion kronor last year, with operating profit rising 34% to 3.29 billion kronor.

New car sales in the period rose 9.2% to 148,493 units, riding strong results in China.

Revenue rose to 54.47 billion kronor from a year-earlier 42.18 billion kronor, driven by demand for the company’s XC60, S90 and V90 models and favorable exchange rates.

Mutual Funds | WSJ.com/fundresearch Explanatory Notes

Fund

Data provided by

Top 250 mutual-funds listings for Nasdaq-published share classes with net assets of at least $500 million each. NAV is net asset value. Percentage performance figures are total returns, assuming reinvestment of all distributions and after subtracting annual expenses. Figures don’t reflect sales charges (“loads”) or redemption fees.

NET CHG is change in NAV from previous trading day. YTD%RET is year-to-date return. 3-YR%RET is trailing three-year return annualized. e-Ex-distribution. f-Previous day’s quotation. g-Footnotes x and s apply. j-Footnotes e and s apply. k-Recalculated by Lipper, using updated data. p-Distribution costs apply, 12b-1. r-Redemption charge may apply. s-Stock split or dividend. t-Footnotes p and r apply. v-Footnotes x and e apply. x-Ex-dividend. z-Footnote x, e and s apply. NA-Not available due to incomplete price, performance or cost data. NE-Not released by Lipper; data under review. NN-Fund not tracked. NS-Fund didn’t exist at start of period.

Fund

Net YTD

Thursday, July 20, 2017 Net YTD

NAV Chg %Ret Fund

American Century Inv 41.93 +0.09 Ultra American Funds Cl A 30.18 +0.03 AmcpA p AMutlA p 39.52 +0.05 BalA p 26.63 -0.01 12.96 ...

BondA p 62.22 +0.14 CapIBA p CapWGrA 50.47 +0.12 EupacA p 53.90 +0.18 60.64 -0.01 FdInvA p 49.05 -0.01 GwthA p 10.49 ...

HI TrA p 39.74 +0.06 ICAA p IncoA p 22.84 +0.02 42.93 +0.14 N PerA p 43.88 +0.06 NEcoA p

NwWrldA 20.2 SmCpA p TxExA p 12.5 WshA p 8.4 8.6 2.9 9.7 16.5 22.0 13.2 16.7 5.3 10.5 7.0 21.5 22.1

NAV Chg %Ret Fund

62.52 +0.11 53.97 +0.06 12.99 +0.01 43.08 -0.01

21.5 17.4 3.7 8.7

10.91 ...

11.27 +0.01 BlackRock Funds A GlblAlloc p 19.83 +0.01 BlackRock Funds Inst 24.24 ...

EqtyDivd 19.94 -0.01 GlblAlloc 7.82 ...

HiYldBd StratIncOpptyIns 9.94 ...

Del Invest Instl Value 20.29 +0.04 Dimensional Fds

3.2 3.5

Baird Funds

AggBdInst CorBdInst

9.1

5GlbFxdInc EmgMktVa EmMktCorEq IntlCoreEq IntlVal IntSmCo IntSmVa US CoreEq1 US CoreEq2 US Small US SmCpVal US TgdVal USLgVa

17.3 9.2 5.7 3.0 Dodge & Cox

Balanced 4.0 Income

Intl Stk

Net YTD NAV Chg %Ret 11.00 +0.01 29.31 -0.09 21.48 -0.05 13.56 +0.04 18.82 +0.04 20.54 +0.06 22.37 +0.05 21.05 ...

20.03 ...

35.01 +0.04 37.31 -0.04 24.25 -0.03 37.33 -0.02

2.0 22.7 24.4 17.9 14.3 19.6 17.9 10.1 8.4 3.9 ...

1.5 7.3

107.26 +0.08 6.4 13.82 +0.01 3.2 45.29 +0.17 18.9

Net YTD NAV Chg %Ret Fund

195.71 +0.18 Stock DoubleLine Funds ...

TotRetBdI 10.72 ...

TotRetBdN 10.72 Federated Instl StraValDivIS 6.32 +0.03 Fidelity ...

500IdxInst 86.57 500IdxInstPrem 86.57 ...

500IdxPrem 86.56 -0.01 ExtMktIdxPrem r 60.04 -0.01 IntlIdxPrem r 41.52 +0.22 TMktIdxF r 71.50 -0.01 TMktIdxPrem 71.49 -0.01 ...

USBdIdxInstPrem 11.64 Fidelity Advisor I NwInsghtI 31.46 -0.01 Fidelity Freedom FF2020 16.24 +0.02 14.02 +0.01 FF2025 17.47 +0.02 FF2030 FreedomK2020 15.10 +0.01 FreedomK2025 15.93 +0.02 FreedomK2030 16.46 +0.01 FreedomK2035 17.29 +0.02 FreedomK2040 17.32 +0.02 Fidelity Invest Balanc 24.11 -0.03 83.97 +0.07 BluCh 118.68 +0.01 Contra 118.65 +0.01 ContraK 10.18 +0.01 CpInc r DivIntl 39.71 +0.13 170.72 +0.50 GroCo GrowCoK 170.64 +0.51 7.93 ...

InvGB 11.30 +0.01 InvGrBd

8.5 LowP r

11.7 11.7 11.7 9.4 17.6 11.3 11.3 2.7 17.8 10.1 10.7 12.5 10.0 10.8 12.6 13.8 13.9 10.3 24.7 21.3 21.4 8.2 19.2 24.8 24.9 2.9 3.2

The auto maker is extending a summer shutdown for the facility that makes Sonics and Bolts. of thousands of reservations from potential buyers.

About 7,500 Bolts have been sold through June, though it is yet to go on sale in all 50 states.

Sales of the $37,000 Bolt roughly match the Nissan Leaf, a lower-range electric car that has been available in the U.S. for several years. Electric vehicles make up just 0.6% of U.S. auto market in 2017, according to Autotrader.com, as inadequate charging infrastructure, high costs and low gasoline prices have muted demand.

Net YTD NAV Chg %Ret Fund

Net YTD NAV Chg %Ret Fund

Haig Stoddard, an analyst with Wards.com, said the Bolt is a strong performer among the field of electric vehicles, but it is “not selling as strong as GM had hoped.” Tesla represents nearly half of electric-vehicle sales in the U.S., Autotrader estimates.

The Bolt, under development for several years, helps the company meet tightening emissions standards, and buyers qualify for a $7,500 tax credit after the sale.

“Putting the Bolt into the

Net YTD NAV Chg %Ret Fund

54.19 +0.09 9.5 DispValMCI 23.25 -0.08 8.3 PIMCO Fds Instl LowPriStkK r 54.17 +0.09 9.6 JPMorgan Funds NA ...

AllAsset 98.72 -0.15 14.4 MdCpVal L 39.11 -0.08 7.4 HiYld 9.06 +0.01 106.66 +0.03 28.0 JPMorgan I Class 10.27 +0.01 TotRt 11.67 ... 3.0 PIMCO Funds A 22.66 ... 10.9 CoreBond Puritn SrsEmrgMktF 20.02 +0.02 27.2 JPMorgan R Class NA ...

IncomeFd 11.69 +0.01 3.1 PIMCO Funds D SrsInvGrdF 11.30 ... 3.2 CoreBond ... 3.2 Lazard Instl TotalBond 10.70 NA ...

IncomeFd First Eagle Funds EmgMktEq 19.00 -0.01 19.0 PIMCO Funds Instl 58.84 +0.12 8.4 Loomis Sayles Fds GlbA NA ...

IncomeFd FPA Funds LSBondI 14.35 +0.01 7.2 PIMCO Funds P 34.54 -0.01 7.1 Lord Abbett A FPACres NA ...

IncomeP FrankTemp/Frank Adv ShtDurIncmA p 4.29 ... 1.6 Price Funds IncomeAdv 2.35 +0.01 5.8 Lord Abbett F BlChip 90.74 +0.05 FrankTemp/Franklin A ... 1.9 ShtDurIncm 4.29 28.96 +0.04 CapApp 7.49 +0.01 4.5 Metropolitan West CA TF A p 33.47 ...

EqInc 10.68 ... 2.4 Fed TF A p 12.05 +0.01 2.6 TotRetBd 66.50 ...

EqIndex 10.68 ... 2.6 2.37 +0.01 5.7 TotRetBdI IncomeA p 66.04 +0.05 Growth ... 2.6 RisDv A p 57.51 +0.05 9.9 TRBdPlan 10.05 72.75 +0.47 HelSci MFS Funds Class I FrankTemp/Franklin C 36.54 +0.03 39.72 -0.02 10.5 InstlCapG Income C t 2.40 +0.01 5.8 ValueI 18.58 +0.05 IntlStk MFS Funds Instl FrankTemp/Temp A 14.88 +0.04 24.39 +0.10 20.4 IntlValEq GlBond A p 12.30 -0.03 4.2 IntlEq 88.08 +0.07 MCapGro Growth A p 26.61 +0.11 12.9 Mutual Series 30.58 ...

FrankTemp/Temp Adv GlbDiscA 33.17 +0.01 8.5 MCapVal 52.21 -0.03 33.82 +0.01 8.6 N Horiz GlBondAdv p 12.25 -0.03 4.3 GlbDiscz N Inc 9.52 ...

Oakmark Funds Invest Harbor Funds 32.71 -0.07 7.5 OverS SF r 10.82 +0.04 CapApInst 69.73 -0.02 23.1 EqtyInc r 22.53 +0.01 80.03 -0.11 10.4 R2020 69.23 +0.24 18.5 Oakmark IntlInst r 17.32 +0.01 OakmrkInt 27.54 +0.14 21.3 R2025 Harding Loevner 25.44 +0.01 R2030 IntlEq NA ... NA Old Westbury Fds 18.56 +0.01 14.49 +0.02 12.9 R2035 LrgCpStr Invesco Funds A R2040 26.62 +0.02 11.03 -0.01 5.2 Oppenheimer Y EqIncA 39.57 -0.07 23.8 Ret2045 DevMktY John Hancock Class 1 17.95 +0.01 41.23 +0.21 18.9 Value LSBalncd 15.56 +0.01 9.9 IntGrowY 37.21 ...

16.52 +0.01 12.4 Parnassus Fds LSGwth PRIMECAP Odyssey Fds 42.32 -0.05 8.3 Growth r ParnEqFd John Hancock Instl 33.61 +0.04

2.8 MagIn 2.7 OTC 9.1

JEFF KOWALSKY/BLOOMBERG

STOCKHOLM—Volvo Car Corp. and its Chinese parent Zhejiang Geely Holding Group Co. on Thursday outlined a wide-ranging technical collaboration to further the Swedish auto maker’s transformation into an all-electric brand and as well Geely’s global ambitions.

Under their agreement, they will create a China-based joint venture to build on their current technology sharing with the aim of accelerating electric-car development.

Volvo Cars will also take a “significant minority stake” in Lynk & Co., a car brand the Chinese investment group created in its effort to become a global automotive force. Lynk will be jointly owned by Geely Holding, Geely Automobile Holdings Ltd and Volvo Cars.

“This venture will allow us to achieve lower prices in global markets, faster development of technology and to get more resources,” Volvo Cars Chief Executive Hakan Samuelsson said in an interview.

“The cooperation is primarily targeting Lynk & Co and gives us more influence.”

Earlier this month, Volvo said all of its new models from 2019 would be either fully electric or a hybrid, making it

BY ADRIENNE ROBERTS

Net YTD NAV Chg %Ret Fund

Principal Investors NA ...

NA DivIntlInst 5.8 Prudential Cl Z & I 14.51 +0.01 4.0 TRBdZ Schwab Funds 38.44 -0.01 NA S&P Sel TIAA/CREF Funds 18.45 ...

NA EqIdxInst IntlEqIdxInst 19.49 +0.09 NA Tweedy Browne Fds GblValue 28.05 +0.02 NA VANGUARD ADMIRAL 500Adml 228.60 -0.02 33.24 +0.01 BalAdml 25.0 CAITAdml 11.83 +0.01 10.6 CapOpAdml r147.39 -0.01 7.2 35.40 -0.10 EMAdmr 11.6 EqIncAdml 73.18 +0.06 24.0 ExtndAdml 79.11 -0.02 23.1 GNMAAdml 10.53 -0.01 25.0 GrwthAdml 67.33 -0.04 21.5 HlthCareAdml r 91.29 +0.80 16.2 HYCorAdml r 5.99 +0.01 16.9 InfProAd 25.73 -0.06 5.2 IntlGrAdml 87.33 +0.26 20.5 ITBondAdml 11.47 ...

3.1 ITIGradeAdml 9.83 ...

19.3 LTGradeAdml 10.57 +0.02 10.4 MidCpAdml 180.15 -0.23 11.7 MuHYAdml 11.34 +0.01 12.9 MuIntAdml 14.21 +0.01 13.9 MuLTAdml 11.66 +0.01 14.7 MuLtdAdml 11.00 +0.01 14.9 MuShtAdml 15.81 +0.01 10.6 PrmcpAdml r127.99 +0.05 REITAdml r 118.76 -0.63 17.4 SmCapAdml 66.28 -0.03

market should be looked at as part of GM’s R&D in electrification,” Mr. Stoddard said. “GM and the rest of the industry are preparing for the long term.”

Jim Cain, a GM spokesman, said the company has more than 100 days’ supply of Bolt inventory on Chevrolet dealer lots (compared with an industry average of 74 days’), but that number is distorted by the fact only some Chevy dealers currently offer the car.

—John Stoll contributed to this article.

Net YTD NAV Chg %Ret Fund

STBondAdml 10.48 ...

NA STIGradeAdml 10.70 ... ...

TotBdAdml 10.80 4.7 TotIntBdIdxAdm 21.73 +0.01 TotIntlAdmIdx r 28.76 +0.07 11.7 TotStAdml 61.84 -0.01 13.63 +0.06 TxMIn r 11.2 ValAdml 38.17 +0.02 17.8 WdsrllAdml 67.20 -0.06 WellsIAdml 64.25 +0.07 12.0 WelltnAdml 71.49 +0.05 WndsrAdml 76.20 -0.07 11.7 VANGUARD FDS 7.9 DivdGro 25.58 +0.01 4.1 HlthCare r 216.41 +1.89 18.6 INSTTRF2020 21.89 +0.02 19.8 INSTTRF2025 22.07 +0.02 8.4 INSTTRF2030 22.19 +0.02 9.4 INSTTRF2035 22.31 +0.02 1.4 18.2 INSTTRF2040 22.43 +0.02 20.4 INSTTRF2045 22.54 +0.03 37.23 +0.07 5.9 IntlVal 19.51 +0.01 1.2 LifeCon 31.89 +0.03 LifeGro 29.7 26.11 +0.02 3.5 LifeMod PrmcpCor 25.65 ...

3.6 31.58 -0.09 7.5 SelValu r 26.23 +0.01 11.3 STAR 10.70 ...

5.2 STIGrade 3.9 TgtRe2015 15.55 +0.01 4.5 TgtRe2020 30.71 +0.02 2.4 TgtRe2025 17.94 +0.02 1.2 TgtRe2030 32.31 +0.03 17.6 TgtRe2035 19.79 +0.02 3.3 TgtRe2040 33.98 +0.03 7.9 TgtRe2045 21.31 +0.02

1.4 1.9 2.8 0.8 18.4 11.3 17.9 6.6 8.9 5.6 7.4 11.0 10.9 20.4 8.7 9.7 10.7 11.5 12.5 12.9 17.3 6.8 11.6 9.2 15.6 9.7 11.5 1.8 7.2 8.7 9.7 10.7 11.6 12.5 12.8

TgtRe2050 TgtRetInc TotIntBdIxInv WellsI Welltn WndsrII

Net YTD NAV Chg %Ret

34.29 +0.04 13.38 +0.01 10.87 +0.01 26.52 +0.03 41.40 +0.03 37.87 -0.04 VANGUARD INDEX FDS 228.58 -0.02 500 ExtndIstPl 195.23 -0.03 SmValAdml 53.83 +0.02 10.76 ...

TotBd2 17.20 +0.05 TotIntl 61.82 -0.01 TotSt VANGUARD INSTL FDS BalInst 33.24 ...

DevMktsIndInst 13.65 +0.06 DevMktsInxInst 21.33 +0.08 79.11 -0.01 ExtndInst GrwthInst 67.34 -0.04 10.48 -0.02 InPrSeIn 225.57 -0.02 InstIdx 225.59 -0.02 InstPlus ...

InstTStPlus 55.51 MidCpInst 39.80 -0.05 MidCpIstPl 196.27 -0.25 SmCapInst 66.28 -0.03 ...

STIGradeInst 10.70 TotBdInst 10.80 ...

TotBdInst2 10.76 ... ...

TotBdInstPl 10.80 TotIntBdIdxInst 32.61 +0.02 TotIntlInstIdx r115.02 +0.30 TotItlInstPlId r115.04 +0.30 TotStInst 61.86 ...

38.17 +0.02 ValueInst Western Asset CorePlusBdI 11.88 +0.02

12.8 5.3 0.8 5.6 7.3 8.8 11.6 9.4 4.3 2.8 18.4 11.2 7.8 18.0 17.9 9.4 18.2 1.2 11.7 11.7 11.3 11.3 11.3 7.9 1.9 2.8 2.8 2.8 0.8 18.4 18.4 11.3 6.6 5.7

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THE WALL STREET JOURNAL.

Friday, July 21, 2017 | B6A

NY

PAID ADVERTISEMENT CHINA DAILY

ALL YOU NEED TO KNOW

This supplement was paid for and prepared solely

by China Daily, an official publication of the People’s Republic of China.The Wall Street Journal news organization and advertising department were not involved in the creation of this content.

20 YEARS AFTER RETURN PRESIDENT’S MESSAGE MARKS HONG KONG ANNIVERSARY, P2

President Xi Jinping with his U.S. counterpart Donald Trump in Hamburg on July 8. YAO DAWEI / XINHUA

China and U.S. to Join Forces on Economy Second meeting of presidents promotes trade and military plans.

Zhang Yunbi and An Baijie report

FTZ, AS EASY AS CAN BE SHANGHAI ACTS AS MODEL FOR FREE TRADE ZONES, P3

Friend of Animals Finds Way to Neuter a Beastly Problem

By ZHOU WENTING Coralie Debras, a resident of Shanghai for the past 13 years, said she is relieved to have not found any pregnant cats in her community during this year’s mating season.

Debras, 46, said it is a result of the trap-neuterreturn method that she helped implement four years ago, which aims to control the population of stray cats.

“It has become less noisy at night and the streets are cleaner, and the number of complaints about stray cats that the residential committee received this year is half that of last year,” said Debras,a French citizen living in a high-end community in Pudong New Area’s Lujiazui financial area.

Her idea to introduce the TNR method was born five years ago when she discovered that cats in her community were dying because residents who were fed up with them fighting, making a mess of garbage and being noisy during mating season began poisoning their food.

“I even saw some cats with traps attached to their feet. I understood people’s frustrations, but felt there was a better way to address the situation,” said Debras, who is a stay-at-home mother and a child care and animal welfare volunteer.

She put forward her TNR proposal, a method of humanely trapping stray cats, neutering them and then returning them to the location where they were found.

While TNR is a popular way to control stray cat populations in the West, where governments provide financial support for professional associations to conduct such operations, it is a relatively new concept in China.

Debrasmadebrochuresfor residents in her community, detailing the initiative in French, English and Chinese. “ Re p ro d u c t i o n i s a n instinctive act, which the animals cannot control.Most cats fight or become infected with diseases during mating season.TNR is a humane and effective way to enable them to live in the community without disturbing residents.”

Tw o y e a r s a g o s h e became a member of the residential committee of her community, where 40% of residents are expatriates.

She has since established a community pet club for residents where they can talk about how to take care of or train pets and be responsible pet owners.

“We have also made a fixed feeding area for stray cats so that the environment remains clean and the cats stay healthy.”

Debras plays with a stray cat in her community. GAO ERQIANG / CHINA DAILY

A

meeting between President Xi Jinping and his U.S. counterpart , D o n a l d Tr u m p , o n July 8 was productive and reassuring to the world, experts said, as it confirmed discussions were continuing on an ambitious economic cooperation plan and a sequence of meetings involving senior military officers.

The two presidents’ second meeting this year, on the sidelines of the G20 Summit in Hamburg, Germany, took place amid widespread concern about tensions on the Korean Peninsula and a U.S. warship’s recent intrusion into Chinese waters in the South China Sea. Both leaders agreed to maintain close high-level contact and to reinforce strategic mutual trust, the Foreign Ministry said.

The first round of a comprehensive economic dialogue was set for July 19, and Beijing andWashington will launch at an early date their first law enforcement and cybersecurity dialogue, as well as their first social and cultural dialogue, the ministry said.

During his meeting with Trump,Xi said the two sides are discussing a one-year cooperation plan, and that the 100-

day economic cooperation action plan initiated after the meeting with Trump at Mar-a-Largo, Florida, in April has made more progress.

On military-to-military relations, Xi proposed that the two countries’ defense ministers exchange visits as soon as possible. He called for concerted efforts on such matters as the visit to China in August by the chairman of the U.S. Joint Chiefs of Staff, the first dialogue between the joint staffs of the two countries’ militaries in November and the Chinese Navy’s participation in the U.S.-led 2018 Pacific Rim military drill.

Tr u m p h a i l e d h i s “ w o n d e r f u l relationship” with Xi and expressed confidence in success in tackling common problems together with China, the White House said.

Xi said both sides should respect the core interests and major concerns of each other and appropriately tackle their differences and sensitive issues.

The two sides should have mutual respect, seek win-win results, expand pragmatic cooperation in all fields and reinforce coordination with respect to global and regional issues, Xi said.

The two leaders agreed to further communication and coordination on

the Korean Peninsula nuclear issue.

Xi said the world should increase efforts in promoting dialogue and c o n t ro l l i n g t h e s i t u a t i o n w h e n responding to violations by the Democratic People’s Republic of Korea of U.N. Security Council resolutions.

Xi also reiterated China’s objection to the deployment of the U.S. Terminal High-Altitude Area Defense anti-missile system in the Republic of Korea.

Te n g J i a n q u n , d i re c t o r of t h e Department of American Studies at the China Institute of International S t u d i es, sa i d t h e p e rso n a l t i es between Xi and Trump are adding to people’s hope for upcoming meetings, including a state visit by Trump to China later this year.

Chen Fengying, a senior researcher on the world economy at the China Institutes of Contemporary International Relations, said the way the two countries work with each other on economics and trade “directly influences the improving process of the world economy.”

Two -way t rade is in creasin gly reciprocal, meeting the needs of both sides and the world, and any bilateral trade imbalance should be viewed with a cool head, Chen said.

A Big-City Heart Beats Once More

By LIA ZHU It can be seen in the numbers: At least 20 skyscrapers are being built; more than 5,000 condos are being built; and 46,000 jobs were forecast to be created from 2015 to 2020 in the hospitality and tourism industry.

Downtown Los Angeles is undergoing a rejuvenation, and Chinese property developers are playing a major role.

Not only is the new construction reshaping the city’s skyline, it is also redefining urban living style by creating a vibrant new shopping, dining and entertainment destination.

The foot traffic in downtown Los Angeles is steady, young adults and families are opting for an urban lifestyle and new restaurants, stores and entertainment venues are taking advantage of the scene.

Five years ago downtown Los Angeles was a place you did not want to go at night, said Robert, an Uber driver who gave only his first name.“It was empty at night and weekends. People didn’t really live down here.”

Robert said he used to avoid driving through the downtown area at night, but now he has many passengers going to downtown restaurants and nightclubs.

“It has totally changed face.”

K.AllenAnderson,senior vice president and general counsel of Greenland U.S.A., said, “Los Angeles downtown wasn’t at all the kind of downtown you see in other international cities, or even other major cities in the U.S.

I think Greenland U.S.A.’s Metropolis is taking a leading role in the development in the downtown area.”

HU GANG PRESIDENT AND CHIEF EXECUTIVE OF GREENLAND U.S.A.

“For various reasons, cultural and land restriction reasons, for many years, buildings could not be taller than the city hall, which is about 20-stories high,” he said. “So you never had the inner city growth. People grew out into the suburbs.”

That started to change 15 years ago when the Staples Center and the Ritz Carlton and JW Marriot hotels came to Los Angeles, and “that’s been really accelerated by Chinese developers,” Anderson said.

Now those developers, such as Greenland, Oceanwide, Shenzhen Hazens and Lifan, are pumping billions of dollars into the city, adding thousands of new residential units in high-rise towers.

Stephen Cheung, president of World Trade Center Los Angeles, said Los Angeles is going through a renaissance that “we haven’t seen in decades.”

“Looking at the population and the

industry growing, you start seeing a new vibe that we haven’t experienced before.”

Over the past 15 years investment in downtown has exceeded $15 billion, and the weekday population has grown to more than 500,000.

More than 700 restaurants, bars, retail and night life venues opened between 2008 and 2014, the Downtown Center Business Improvement District said.

Greenland started the wave of Chinese investment with a $150-million acquisition of 6.33 acres of land, a parking lot, in South Park in late 2013.

Now that site is “Metropolis,” a high-rise tower complex.

With investment exceeding $1 billion, the four-building complex includes an 18-story, 350-room hotel that opened on March 31 and a 38-story residential tower with 308 condos that opened in April. A 40-story tower with 514 condos and another 56-story tower with 685 condos are still being built, the first to open next year and the other in 2019. “ I t h i n k G r e e n l a n d U . S . A .’ s Metropolis is taking a leading role in the development in the downtown area,” said Hu Gang, president and chief executive of Greenland U.S.A., a subsidiary of the Chinese real estate giant Greenland Group.

“Now we are taking the leadership of the market, also, and we are creating the market as well.”

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Xi Calls for Unity in Face of Challenges President makes rallying call as Hong Kong Special Administrative Region celebrates 20th anniversary of return.

An Baijie reports

Chinese developers are pumping billions of dollars into the inner city of Los Angeles, adding thousands of new residential units in high-rise towers. LIA ZHU / CHINA DAILY

LOS ANGELES: Chinese Play Role in Downtown Renaissance FROM PAGE 1

Oceanwide Plaza, another high-rise complex, and Shenzhen Hazens’ proposed $700 million mixed-use project, along with the Metropolis, are reported to be the largest projects being built in downtown Los Angeles.

Only several minutes’ walk from the Metropolis is Oceanwide Plaza, another $1 billion mixeduse project by China Oceanwide, a privately owned investment company.

A 50-story Park Hyatt hotel with 184 rooms, and two 40-story towers with 504 condos is being built on nearly 5 acres. Upon completion in early 2019, the project will feature a 700-foot ribbon-shaped LED sign, which is expected to be the largest LED screen on the West Coast.

When Thomas Feng, chief exe c u t i ve a n d p res i d e n t of Oceanwide Plaza, arrived in Los Angeles in 2013, it was not a hot destination in most people’s eyes.

“Not many people were aware of the renaissance at that time,” he said.

The renaissance was also a result of the change in industrial and family structure, Feng said.

“After manufacturing started fading in the 1990s, the lifestyle of big families living in a big house had changed, and the younger generation became the

New residents help drive the downtown renaissance, and we are clear about the demand, which is mixed-use buildings.”

THOMAS FENG

CHIEF EXECUTIVE AND PRESIDENT OF OCEANWIDE PLAZA

m a j o r i t y i n t h e w o r k fo rc e, especially on the West and East coasts.”

A 20 1 5 re p o r t by B ea co n Economics for the Central City Association of Los Angeles and the Downtown Center Business Improvement District of Los Angeles said the demand for apartments in downtown Los Angeles tripled between 2000 and 2013.

Now there are 5,636 condos, and more than 5,000 are being built, most of them invested in by Chinese.

“New residents help drive the downtown renaissance, and we are clear about the demand, which is mixed-use buildings,” Feng said.

He also said that more young people, especially the millennium ge n e ra t i o n , wa n t to l i ve i n

downtown Los Angeles to avoid commuting and have more time for entertainment and being on the internet.

Chinese investors started coming to Los Angeles after the financial crisis, around 2010, said Andrew Pan, senior vice-president and head of Chinese business and strategy at East West Bank.

“When China’s real estate market cooled down, major Chinese developers had to find a market to keep their capacities going, and the U.S. developers were still recovering from the crisis,” said Pan, who has worked in downtown Los Angeles for more than 10 years and watched the changes.

Los Angeles was the Chinese investors’ first stop because it is a gateway city, and the downtown is the metropolitan area closest to China, he said, adding that the area was attractive for developers because of relatively low construction costs and more reasonable property prices.

In Manhattan, a condo can cost more than $1,500 a square foot and in San Francisco more than $1,200 a square foot, but in Los Angeles the average condo cost is $700 a square foot.

The LosAngeles city government has been aggressively attracting f o re i g n d i re c t i n ve s t m e n t , especially in the real estate i n d u s t r y fo r i t s d o w n t o w n renaissance plan.

A

trip that President Xi Jinping made to Hong Kong that concluded on July 1 boosted the confidence of its people for a better future,despite challenges that remain ahead, analysts and residents said.

During his 49-hour visit to the special administrative region, Xi took part in 20 activities and held talks with people from all walks of life, ranging from schoolchildren and teenagers to top government officials.

He also inspected the People’s Liberation Army’s Shek Kong barracks in Hong Kong on June 30.

The garrison should champion State sovereignty and ensure the region’s prosperity and stability, he said.

In a speech on July 1 marking the 20th anniversary of Hong Kong’s return to China, Xi called on the fifthterm government of the Hong Kong SpecialAdministrativeRegiontounite peopletofullyimplementtheprinciple of“one country, two systems.”

China’srapiddevelopmentprovides an invaluable opportunity, he said, calling on people to “cherish the opportunity, seize it and focus your energyonHongKong’sdevelopment.”

TherearemanychallengesforHong Kong, he said. For example, it has yet to build public consensus on some important political and legal matters; the Hong Kong economy faces a number of hurdles; and housing and other issues that affect the people’s daily lives have become more serious.

To tackle the challenges, Xi said, “We must stay on the right and steady course,gainafullunderstandingofthe policy of ‘one country, two systems’ and faithfully implement it.”

In his speech, Xi warned against moves to undermine national sovereignty or challenge the central government’s power.

“Any attempt to endanger China’s sovereignty and security, challenge the power of the central government and the authority of the Basic Law of theHongKongSpecialAdministrative Region or use Hong Kong to carry out infiltration and sabotage activities against the mainland is an act that

Smooth subway trip for women Shenzhen Metro Group launched “ladies first” subway cars on June 26, with the aim of providing more comfortable and safer travel for women. It is the first subway in the country to offer the service.

In a trial operation, the operator has designated the first and last compartments of every train on Lines 1,3,4and5aspriority carsfor women.

Express delivery spending up Chinese customers spent more on express delivery services last year, and average delivery costs continued to decline, according to an industry report. Average spending in China on express delivery stood at 287 yuan ($42) last year, up 42.7% year-onyear, according to the State Post

XI JINPING

CHINESE PRESIDENT

crosses the red line,and is absolutely impermissible.”

Many Hong Kong people expressed appreciation for Xi’s visit, saying they hoped the public would heed the president and reunite to achieve a bright future.

Lau Siu-kai, vice-president of the Chinese Association of Hong Kong and Macao Studies, said he was delighted to see Xi reaffirming the central government’s firm stance in implementing the “one country, two systems”principle in Hong Kong.

Xi’scommitmenttoithelpsincrease confidence in Hong Kong’s long-term prosperity and stability, and helps it focus on devising strategies to push forward its own development along with the country’s, Lau said.

Confidence was a recurring theme in Xi’s speeches in the city. At an official banquet hosted by the Hong Kong government on the second day of his visit, Xi called on Hong Kong people to have confidence in themselves, in the special administrative region and in the country.

Chan Yung, chairman of the New Territories Association of Societies, said the past 20 years were a perfect demonstration of the central government’s continuous support to the region.

“When Hong Kong faced crises,the central government was always there to help,” Chan said, adding that with strong support Hong Kong is wellpositioned to be confidentin pursuing growth.

Luis Liu in Hong Kong contributed to this story.

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News Digest World feels impact of Governance A book on governance written

by President Xi Jinping recently marked the 1,000-day anniversary of its debut and has set a record in China’s publication history dating back 40 years with more than 6.25 million copies in 22 languages in print worldwide. The book, Xi Jinping: The Governance of China, provides an insight into China’s leaders and the country’s economic success.A dozen of the 22 language editions were published at the request of various countries, and by the end of 2018 another 13 language versions are expectedtobeadded,accordingtoXu Bu, president of Foreign Languages Press, the book’s publisher.

We must stay on the right and steady course, gain a full understanding of the policy of ‘one country, two systems’ and faithfully implement it.”

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Bureau. Average costs dropped from 13.4 yuan per item to 12.7 yuan, and consumers were increasingly satisfied with the services. A total of 31.3 billion parcels were delivered last year, up 51.4% year-on-year.

The sector generated 397 billion yuan in revenue last year, up 43.5%, the bureau said. The target annual revenue of the courier sector will be 800 billion yuan in 2020,according to apolicydocumentissuedbytheState Council in October.

Large dinosaur fossil site found Paleontologists have discovered a large fossil site in Chongqing, according to a news conference held by the city government. More than 5,000 fossils have been excavated from a “fossil wall” in Pu’an township inYunyang County,since October,just a year after a local farmer discovered the site. It is estimated that many dinosaur fossils are buried at least 65 feet underground. The unearthed fossils belong to at least five dinosaur categories, such as ornithopods, sauropodsandstegosauria,according to the Chinese Academy of Sciences’ Institute of Vertebrate Paleontology and Paleoanthropology.

Drones as guardians of crops The drone maker DJI Innovation Technology of Shenzhen signed a memorandum of understanding with Dow AgroSciences of Indianapolis to work on the research and application of crop protection drones and technology. The two companies will

China Daily U.S.A. 1500 Broadway, Suite 2800, New York, NY 10036 +1 212 537 8888 editor@chinadailyusa.com Lotus and the circle of life People do yoga exercises by a lotus pond at Zhuyuwan Park in Yangzhou, Jiangsu province on June 20. The following day is International Yoga Day. MENG DELONG / FOR CHINA DAILY test crop protection products carried and sprayed by drones.

China Mobile to begin 5G tests China Mobile Communications Corp., the world’s largest telecom carrier by subscribers, will start 5G scale tests next year and launch a pre-commercial service in 2019, with the aim of fully commercializing 5G — the next major phase of mobile telecommunications standards — in 2020. The company recently established the country’s first 5G base station in Guangzhou, Guangdong province, and carried out a 5G outfield test with a telecom equipment maker.

Industrial firms show profit growth China’s big industrial firms are expected to enjoy stable profit growth in the coming months, after a double-digit year-on-year increase in cumulative profit from January to May laid a solid foundation for the year. Industrial companies with annual sales of more than 20 million yuan ($2.9 million) posted 2.9 trillion yuan in profits in the first five months, up 22.7% cumulatively year-on-year, according to the National Statistics Bureau. In May alone, profits of major industrial firms rose 16.7% yearon-year, up from 14% in April, data showed.

CHINA DAILY

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Trade Zone Becomes a Mighty Model More than 60,000 free trade accounts help serve more than 27,000 domestic and overseas companies in about 110 countries and regions. Shi Jing reports

I

t has become a blueprint for success and a model for economic growth. The China (Shanghai) Pilot Free Trade Zone, opened in September 2013, was the first of its kind.

Since then it has been a major driver in economic expansion in the city and across the country.

“The Shanghai zone became a national test model,” said Weng Zuliang, Party secretary of Pudong New Area. “It was not just a local initiative.”

Impressive figures illustrate the achievements of the free trade zone over the past three-and-ahalf years.

The zone has expanded to nearly 30,000 acres from its original size of about 8,650 acres. Last year it produced 75% of GDP for the Pudong New Area, where it is located.

It also accounted for one-fourth of the city’s GDP. The negative list for foreign investment has been dramatically reduced, and the number of newly registered companies has increased to more than 40,000 since 2013.

This equals the total number posted in the 20 years before the trade zone opened.

“Over the past three-and-a-half years the zone has made major strides in investment, trade, financial reform and the change of government functions,”Weng said.

Time needed for imported container goods to be cleared has been cut by 25% and time for air freight to be cleared has been cut by 11%.

More than 60,000 free trade accounts are also in operation, s e r v i n g m o re t h a n 2 7,0 0 0 domestic and overseas companies in about 110 countries and regions.

But there are still challenges ahead for the free trade zone as it continues to grow.

“One of the main tasks is for it to become more closely linked to the Belt and Road Initiative so more companies can reach overseas markets,” Weng said.

Companies registered in the free

Playing Field Opens up for Foreign Firms

By ZHONG NAN

The Shanghai free trade zone’s performance of the past three-and-a-half years is wrapped up in impressive figures.

WU JUN / FOR CHINA DAILY

One of the main tasks is for it to become more closely linked to the Belt and Road Initiative so more companies can reach overseas markets.”

WENG ZULIANG PARTY SECRETARY OF PUDONG NEW AREA IN SHANGHAI

trade zone have reported trade valued at 333.9 billion yuan ($49 billion) with economies involved in the Belt and Road Initiative.

In the first quarter of this year the value of trade exceeded 95 billion yuan, up 28.7% compared with the corresponding period last year.

By the end of last year companies registered in the trade zone had funded 108 projects in 25 countries related to the Belt and Road Initiative, which aims to connect Asia, Africa, the Middle East and Europe to the old Silk Road.

Another key area has been total investment, which has reached 4.38 billion yuan, fueled by Belt and Road projects.

Shanghai Zhenhua Heavy Industries, for example, has changed its strategy from being a purely exporting company to funding projects. The group, which was one of the world’s largest makers of cranes and large steel structures, has invested in 14 economies involved in the initiative, Weng said.

“To better participate in the project, the Shanghai zone will first seek smoother communication with local governments. We will perfect the infrastructure in Pudong, further complete the financial system and ensure multilateral trade, so that local consumers can have greater choice with overseas product.”

More sectors are now open for foreign investment in China’s 11 pilot free trade zones, ranging from helicopter manufacturing to financial services, the Ministry of Commerce has announced.

China has pledged to offer more market space to foreign companies to carry out manufacturing, transportation, information, mining, scientificresearchandculture-related business in these zones.

S u n J i we n , t h e m i n i st r y ’s spokesman, said all activities conducted by foreign firms in businesses not on a negative list only need to be filed at the relevant commerce bureau, rather than being reviewed by government branches.

The central government removed the restriction that Chinese partners must hold stakes when foreign businesses set up companies to manufacture helicopters over three metric tons in its free trade zones, and that urban rail vehicle production business must be conducted under the format of joint ventures.

In addition, they are entitled to establish companies with individual ownership.

Eager to restore the country’s earning ability, the State Council on June 16 issued the 2017 negative list for its zones, which removed 27 items whichwereinthe2015version,leaving 95 areas off-limits to foreign investors after four sets of modification since 2013.

The 2017 negative list has further clarifiedtherequirementsofinvestors’ background,earning ability and stock proportion for foreign companies to take part in China’s banking and insurance industries to raise transparency and competitiveness in the country’s free trade zones.

China Leads Ice Pack in Search for Energy Solutions

By ZHENG XIN So-called combustible ice and its successful mining in China is estimated to be 15 years from use,but it is seen as a breakthrough toward a global energy revolution.

Chinese researchers have explored about 7.4 million cubic feet of combustible ice trapped in frozen crystals in the South China Sea in the 30 days since a test drilling and production operation in early May. Daily production reached 240,140 cu ft.

It will be another energy revolution led by China following the U.S. shale revolution, reshaping the global energy mix, said Li Jinfa, deputy director of China Geological Survey, part of the Ministry of Land and Resources.

Reserves of gas hydrate, as combustible ice or flammable ice is known, in the South China Sea are estimated at 80 billion metric tons of oil equivalent, he said.

The ministry said it would formulate policies to encourage participation in the exploration of various types of combustible ice, while aspects including exploration block delineation,granting of licenses for mining, mining registration and development will be given priority to pave the way for commercialization of the frozen fuel.

According to a report on China’s energy and mineral geology survey last year, the country’s gas hydrate could last for 100 years and could well be its next big opportunity in energy.

China’s choice of vigorous expansion of flammable ice mining at the moment is due to the urgency to replace conventional energy to optimize the energy structure and relieve problems caused by energy shortages, analysts said.

The country now relies heavily on crude imports. Successfully mining flammable ice will substantially improve its energy security while lifting the country’s clean energy production technologies to a new

Above: A platform is used to collect combustible ice in the South China Sea recently, while researchers (inset) show off combustible ice in a laboratory in Zhuhai, Guangdong province.

PHOTOS BY GUO JUNFENG / FOR CHINA DAILY

Left: Workers on the platform searching for combustible ice in the South China Sea demonstrate how the equipment works.

level, said Lu Hailong, a professor at the Institute of Ocean Research at Peking University.

Han Wenke, director of the Energy Research Institute at the National Development and Reform Commission, said environmental concerns have been pushing China to further upgrade its energy mix.

Right now the country has a relatively high proportion of coal,which creates heavy pollution.

The International Energy Agency says China has been increasingly relying on imported oil as demand increases, and it is estimated that its reliance on oil imports in 2020 could be even greater than the government plan suggests.

All these are pushing China toward a cleaner fuel alternative.

China is not the first country to try mining flammable ice. Japan made headway in 2013 and again in May,

and the U.S. government has been conducting research into the clean fuel for years.

H oweve r, n o p ro g ress h a s been made, mostly because of technological barriers.

Thesuccessfulminingofgashydrate has turned China into a frontrunner in thecleanenergyminingfield,Hansaid, whereas it has trailed international peers in exploring for oil, gas, shale gas and in coal mining. The lack of technology or experience to borrow or learn from makes China’s success of even greater value, Han said.

The gas hydrate, which is usually located frozen deep in the Earth, requires advanced technologies and

comprehensive national strength, he said.

Once China comes up with a steady output of hydrate gas, international collaboration would be needed, as much of the gas hydrate is frozen deep beneath international seas, he said.

Qiu Haijun, director of the trial mining headquarters, said many countries along the 21st Century Maritime Silk Road have a demand for flammable ice mining.

Withadvancedtechnology,Qiusaid, the gas hydrate could help resolve the problem of energy resources and boost economic development and exchanges between countries.

The test drilling and production operation conducted by China International Marine Containers Group and China National Petroleum Corp. created a solid foundation for commercial use of the resource before 2030, and the test-drilling will help facilitate China’s deep-sea exploration capability, said Li, of the China Geological Survey.

Blue Whale 1, the ultra-deepwater semi-submersible drilling rig built by the country’s largest semisubmersible platform maker, China Yantai CIMC Raffles Offshore Ltd., conducted the tests in the South China Sea. Mai Boliang, president of CIMC, said Blue Whale 1 is the world’s most advanced ocean drilling platform design, and it was important practice for CIMC to further enhance China’s high-end energy exploration equipment.

Han,theEnergyResearchInstitute’s director, said the success after 20 years of research and exploration is onlyasmallstepinaverylongjourney.

The potential risks for the environment and technological barriers attenuate all the optimistic outlooks, he said.

Collection so far is more of strategic concern with vast uncertainties, and whether the frozen fuel will replace regular oil and natural gas remains to be seen, Han said.

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Tan Siok Siok’s black-and-white photos reveal a touching and lively side of daily lives in Beijing’s hutong. PHOTOS PROVIDED TO CHINA DAILY

A Picture of Life in the Alleyways A foreign documentary filmmaker unveils her book of photos of a Beijing hutong — all taken on cellphone. Deng Zhangyu reports

O

ver the past five years, Tan Siok Siok has been recording the lives of people in a Beijing hutong (alley) on her cellphone and disseminating the photos through social media.

In her images from the old-style alleyways, chairs and bicycles, sleepy people and those with earmuffs are commonly seen.

In May the documentary filmmaker from Singapore, who now runs a video company in Beijing, published her book People in Beijing that features photos taken by her only on her phone. It records the daily lives of the residents of a hutong and, in particular, sheds light on details that are common but often ignored by others.

“Eachofmyphotosisanindependent story in Beijing,” said Tan, 45. “You can say it’s a story of Beijing but also a story of the world.”

The expressions on people’s faces

in her pictures — anxiety, dismay and happiness — can be found among the residents of any city, she said.

Tan used a smartphone to take the photos so she could quickly share them online.

“Many of my followers (on social media) are surprised (to know) that all the photos were taken in the same hutong,” she said, adding that some thought she had visited different alleyways in the city.

Tan took the black-and-white images through the different seasons as well as the changes in natural light in the Fangjia hutong, which is located near tourist spots such as the Lama Temple and the Imperial College.

Over the past five years she has visited this alleyway that is close to her office to click the pictures, almost daily.

“Youcansaytheyweretakenrecently or dozens of years ago,” Tan said of the color treatment.

One of Tan’s friends, who moved to New Zealand two years ago, has since put up several of Tan’s hutong photos

Each of my photos is an independent story in Beijing.”

TAN SIOK SIOK

SINGAPOREAN FILMMAKER

on the walls of her home as a way to recall her days in Beijing.

When she came to Beijing in 2010 from Singapore, Tan was interested in everything a hutong had to offer to newcomers,especiallyforeigners:bikes lying on the ground locked with a chain and empty chairs to dissuade people from parking vehicles outside houses in the crammed lanes.

But even after more than 1,000 days of work in the hutong her passion did not fade as she tried to capture daily life from different angles.

One winter morning she noticed an old man riding a three-wheeled vehicle very slowly, with his wife sitting behind him.

Tan followed the couple for a while and discovered they were taking a sightseeing tour of the hutong.The wife was unable to move due to her poor health condition, so her husband was showing her around the city.

“People in the hutong are optimistic, and that touched my heart,” Tan said.

Beijing is a city where the country’s

rapid changes are clearly visible, and in some ways the same is true of the city’s old alleyways, she said.

Tan once saw the owners of shops enjoying tea in front of their outlets in Fangjia, but found that the shops had been demolished the following day.

For her, taking photos is a way of easing the pressures of everyday work.

She is good at capturing people’s expressions without them noticing her, a skill she gained from her years as a documentary filmmaker.

Before arriving in Beijing in 2010 she worked for the DiscoveryTVchannel on many documentary films in Singapore.

She likes to focus on people stories, she said.

Bao Jihong, a longtime friend of Tan, said, “Tan’s photos show us a Beijing that we are familiar with but largely ignore.”

Tan’s next project is to shoot a series of photos on Chinese women from different generations, with which she hopes to tell the story of how they view a rapidly changing society.

Young Composers’Chance for Insight Into Chinese Culture

By ZHANG KUN After listening to the Chinese ballad Little Cabbage, Chris Molina, a young composer from Boston, was reminded about stories he had heard about China.

Inspired by the stories of young people leaving the countryside and moving to the city, Molina composed Little Girl in the Big City for dizi (the Chinese flute) and orchestra.

The piece premiered at the Hearing China II concert at the He Luting Concert Hall of the Shanghai ConservatoryofMusiclastNovember.

“Imagining Little Cabbage in the big city,” the young composer writes in the introduction to his piece,“is both sad and uplifting at the same time.

“Hearing her song mingle, react, fight, take flight, and at times get swallowedupbythesoundsofthecity is a metaphor easy to understand.”

The concert featured eight pieces of music by young composers from around the world.

Molina is a student at the University of Hawaii, and the other musicians are from the Shanghai Conservatory of Music, Oxford, Yale, Poland and New Zealand.

The Hearing China project was launched in 2015, inspired by Ye Guohui, a dean at the conservatory.

Ye is an award-winning composer, with works featuring Chinese culture and music heritage.

Ye Guohui (right), a dean at the Shanghai Conservatory of Music, has initiated many cultural exchange programs among musicians from home and abroad, such as a recent concert (above) by C ASEAN Consonant Ensemble in Shanghai. PHOTOS PROVIDED TO DAILY

He, who has produced electronic, experimental and conceptual works, said the aim of the program is to have “an international platform for composers to understand traditional Chinese music culture and to create and perform innovative works. It is a window for cultural exchanges.”

Ingenious ideas have to be used to make China’s culture interesting and Chinese art easy to understand, he said.

A few years ago, Ye composed a piece for soprano and orchestra, DrinkingWinebytheStream’sChoice, based on an essay by Wang Xizhi (AD 303-361) called Lanting Ji Xu, which

documents a literati gathering in the fourth century.

Ye presented the piece at music festivals abroad, performing the music, as well as telling the story of how ancient Chinese scholars partied.

According to Wang’s essay, artists, writers and poets would sit on a river bank with a special cup that floated on the water.

When the cup floated near one of them, he would compose a stanza and drink the wine.

Ye even had an installation designed to allow the audience to play the game.

“It is a great device to tell a story to an international audience, and let them participate in the creative experience.We want to have in-depth communication with other countries.

“Cultural influence is a subtle process. It does not work by feeding others what you produce.”

Communication between artists and intellectuals from different cultural backgrounds is important to inspire new works,Ye said.

As a member of an educational institution, he believes communication can be achieved between musicians all over the world.

The 2017 Hearing China concert

will begin with a concert at the Shanghai Symphony Hall on Nov. 12.

Young musicians from Australia, Canada, Israel and Russia will present traditional Chinese opera, folk songs and traditional melodies, with their adaptations,arrangements and compositions based on the motif.

While Hearing China is about the international music community’s understanding of Chinese music, the recent concert by the C ASEAN Consonant Ensemble was different.

The ensemble has been active since 2015,and comprises musicians from the 10 member states of the Association of Southeast Asian Nations, each playing traditional music instruments.

When Ye learned about the group’s tour plan earlier this year, he urged them to add one more concert to their schedule — in Shanghai, to play compositions by the students and teachers of the Shanghai Conservatory of Music.

After the ensemble arrived in Shanghai,the musicians worked with the composers on the music.

“It was a great opportunity to learn about the folk music of Southeast Asia,” said Ye.

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MARKETS DIGEST EQUITIES S&P 500 Index

Dow Jones Industrial Average Last Year ago

21611.78 t 28.97, or 0.13% High, low, open and close for each trading day of the past three months.

Trailing P/E ratio 21.01 19.44 P/E estimate * 18.41 17.74 Dividend yield 2.33 2.52 All-time high 21640.75, 07/19/17

Nasdaq Composite Index Last

2473.45 t 0.38, or 0.02% High, low, open and close for each trading day of the past three months.

Year ago

Trailing P/E ratio 24.29 24.85 P/E estimate * 18.80 18.37 Dividend yield 1.99 2.13 All-time high: 2473.83, 07/19/17

Last Year ago

6390.00 s 4.96, or 0.08% High, low, open and close for each trading day of the past three months.

Trailing P/E ratio * 26.14 23.52 P/E estimate * 20.91 19.39 Dividend yield 1.12 1.26 All-time high: 6390.00, 07/20/17

Current divisor 0.14602128057775 21800

2480

6380

21500

2450

6260

21200

2420

6140

20900

2390

6020

20600

2360

5900

Session high UP Close

t

DOWN Session open

Open

t

Close

Session low

65-day moving average

65-day moving average

65-day moving average

5780

2330

20300 Bars measure the point change from session's open May

June

5660

2300

20000 Apr.

Apr.

July

May

June

Apr.

July

May

June

July

Weekly P/E data based on as-reported earnings from Birinyi Associates Inc.

Major U.S. Stock-Market Indexes High

Latest Close

Low

Net chg

% chg

Transportation Avg Utility Average Total Stock Market Barron's 400

9565.43

9451.75

16.7

9.4

8.1

7648.44

20.7

4.9

4.2

Most-active issues in late trading

737.51

625.44

1.3

9.1

8.8

25639.52 21514.15 659.92 521.59

14.8 21.3

10.1 9.6

7.5 7.4

52-Week Low

% chg 3-yr. ann.

YTD

% chg

720.62

715.39

719.81

5.10

25676.50 25584.08 25635.26 660.65 657.46 659.19

-4.26 -0.74

Nasdaq Stock Market Nasdaq Composite 6398.26 Nasdaq 100 5932.61

6365.68 5896.61

6390.00 5921.22

21640.75 17888.28

-0.97

9483.09 -92.64

0.71 -0.02 -0.11 0.08

4.96 5.06

0.09

6390.00 5921.22

5046.37 4647.02

25.9 27.4

18.7 21.7

13.0 14.5

Standard & Poor's 500 Index

2477.62

2468.43

2473.45

-0.38

-0.02

2473.83

2085.18

14.2

10.5

7.7

MidCap 400 SmallCap 600

1781.91 873.68

1774.97 869.80

1778.61 872.27

-1.84 0.32

-0.10 0.04

1780.45 872.27

1476.68 703.64

15.3 18.4

7.1 4.1

8.0 9.5

Other Indexes Russell 2000

1445.06

1438.96

1442.35

0.58

0.04

1442.35

1156.89

19.8

6.3

7.8

NYSE Composite

11963.55 11928.67 11944.49 530.97

532.00

-0.19

NYSE Arca Biotech

4031.84

3965.55

4013.34

51.74

NYSE Arca Pharma

543.68

539.10

542.43

5.34

KBW Bank

95.73

94.65

-0.19

PHLX§ Gold/Silver

95.02

83.38

82.30

0.48

PHLX§ Oil Service

83.09

141.21

136.82

137.95

-2.06

1117.89 10.28

1104.58 9.50

1116.62 9.58

PHLX§ Semiconductor CBOE Volatility

0.03

3.15

532.96

Value Line

Close

SPY

7,858.0 247.14

0.04

Microsoft

MSFT

7,473.8

74.45

0.23

0.31

77.24

73.37

General Electric

GE

6,834.0

26.69

…

unch.

29.68

26.65

4,211.1

36.62

…

unch.

36.68

36.62

4,034.5

35.25

-1.93

-5.19

37.75

34.32

T AT&T PwrShrs QQQ Tr Series 1 QQQ

3,792.5

36.67

0.15

0.41

36.67

36.13

3,791.6 144.13

-0.04

Yamana Gold

3,647.8

iSh MSCI Taiwan Capped EWT EBAY

eBay

AUY

2.55

0.01

2,124.6 154.00

10.20

-0.03 144.37 144.00 0.39

2.55

2.54

Percentage gainers… athenahealth

ATHN

Verastem

VSTM

7.09 160.50 143.80

5.8

3.65

0.14

3.99

3.65

ProSh Ult Bloombg Nat Gas BOIL

16.0

9.99

0.33

3.42

9.99

3.52 9.64

AECOM

ACM

33.8

33.26

0.99

3.07

33.26

32.27

Cintas

CTAS

36.1 130.03

3.25

2.56 132.69 124.00

2.8

1.31

4016.86

2834.14

23.9

30.5

13.8

0.99

554.66

463.78

-0.5

12.6

1.3

99.33

66.90

41.6

3.5

10.3

Manhattan Associates MANH

46.1

43.00

-4.43

-9.34

47.43

41.00

112.86

73.03

-20.1

5.4

-6.6

NCR Corp

NCR

209.4

39.90

-3.08

-7.17

43.05

39.56

192.66

126.75

-16.2

-24.9 -23.2

Supervalu

SVU

87.1

3.20

-0.18

-5.33

3.38

3.20

23.2 -31.8

eBay

EBAY

4,034.5

35.25

-1.93

-5.19

37.75

34.32

Skyworks Solutions

SWKS

297.2 104.50

-3.14

-2.92 108.35 101.00

-1.47 0.31

1138.25 22.51

738.30 51.2 9.51 -24.8

20.2 -7.4

...And losers

Percentage Gainers...

Latest % chg

Net chg

YTD % chg

0.16

12.3 1.8 13.3 16.4

DJ Americas 595.93 Sao Paulo Bovespa 64938.02 S&P/TSX Comp 15264.64 IPC All-Share 51144.14 Santiago IPSA 3825.48

Europe Euro zone Belgium France Germany Israel Italy Netherlands Spain Sweden Switzerland U.K.

Stoxx Europe 600 Euro Stoxx Bel-20 CAC 40 DAX Tel Aviv FTSE MIB AEX IBEX 35 SX All Share Swiss Market FTSE 100

384.07 379.90 3900.59 5199.22 12447.25 1458.12 21438.63 526.29 10564.80 574.89 9027.37 7487.87

–1.47 –0.41 –0.80 –16.85 –4.80 0.18 2.68 –0.19 –40.32 0.39 2.04 –0.22 –23.30 –3.65 –0.63 0.03 3.05 0.77 56.96

6.3 8.5 8.2 6.9 8.4 –0.9 11.5 8.9 13.0 7.5 9.8 4.8

Asia-Pacific Australia China Hong Kong India Japan Singapore South Korea Taiwan

DJ Asia-Pacific TSM 1671.39 S&P/ASX 200 5761.50 Shanghai Composite 3244.86 Hang Seng 26740.21 S&P BSE Sensex 31904.40 Nikkei Stock Avg 20144.59 Straits Times 3293.13 Kospi 2441.84 Weighted 10499.36

0.28 4.64 0.51 29.40 0.43 13.89 0.26 68.05 –0.16 –50.95 0.62 123.73 –31.94 –0.96 0.49 11.90 –0.06 –6.74

17.5 1.7 4.6 21.5 19.8 5.4 14.3 20.5 13.5

4.66 –19.25 –0.83 0.73 1.03 0.09 –241.90 19.93 57.21 –1.70

0.20 0.42 0.01

–0.37

0.13 0.11

–0.04 –0.38 –0.11 –0.02 –0.32 –0.04

10.3 7.8 –0.2 12.1 18.7

Company

Symbol

Calyxt Kala Pharmaceuticals Avista Sarepta Therapeutics ETRACS UBS Bloomberg

CLXT

AEterna Zentaris Ambac Financial Group Soligenix Highpower International Datawatch Corp

AEZS

WAVE Life Sciences Orexigen Therapeutics Akcea Therapeutics Reliv International Sears Holdings

WVE

KALA AVA SRPT UCIB

AMBC SNGX HPJ DWCH

OREX AKCA RELV SHLD

52-Week Low % chg

High

Symbol

Bank of America iPath S&P 500 VIX ST Fut General Electric Advanced Micro Devices AEterna Zentaris

BAC

SPDR S&P 500 Rite Aid Finl Select Sector SPDR Qualcomm Kinder Morgan

SPY

VXX GE AMD AEZS

RAD XLF QCOM KMI

40.63 23.27 20.66 20.10 19.95

... ... ... ...

52.42 37.78 63.73 22.33 16.00 10.10

... ...

19.7 80.7 6.0

MarineMax Ominto A Schulman Checkpoint Therapeutics China Lending

HZO

2.80 21.22 2.87 4.65 10.75

0.46 3.28 0.39 0.55 1.25

19.66 18.28 15.73 13.41 13.16

5.59 0.78 27.25 15.67 8.50 1.90 6.00 1.88 10.80 5.25

-20.2 16.1 -55.8 116.3 93.3

Smart Sand Fairmount Santrol Hldgs Insteel Industries ADOMANI Inovio Pharmaceuticals

SND

18.55 2.60 12.41 10.87 9.60

2.10 0.28 1.30 1.07 0.92

12.77 12.07 11.66 10.91 10.60

40.15 15.15 5.70 1.65 12.80 8.10 12.53 3.84 18.18 5.50

-15.5 -25.9 ...

121.8 -34.8

Stewart Info Svcs Alliance Data Systems Pool U.S. Silica Holdings Natera

STC

A consumer rate against its benchmark over the past year

Money market accounts

0.90% 0.60 t

–0.30

1.20% 800-903-8154

EverBank Jacksonville, FL

1.21% 866-242-1924

PurePoint Financial Woodland Hills, CA

1.25% 855-486-7873

1 3 6 month(s)

-42.3 11.4 -46.3 249.0 185.6

Guggenheim TR Bd Floor Decor Cl A G. Willi-Food Intl Western Gas Partners Sarepta Therapeutics

GTO

247.10 0.04 2.54 -3.42 24.80 -0.04 53.97 -4.95 20.56 4.52

247.42 208.38 8.77 2.21 25.30 18.94 71.62 51.05 23.36 18.31

WSJ Dollar index

5

1.00 One year ago 0.00

–10

Euro Yen

–15

30

Federal-funds rate target 1.00-1.25 1.00-1.25 Prime rate* 4.25 4.25 Libor, 3-month 1.30 1.31 Money market, annual yield 0.33 0.32 Five-year CD, annual yield 1.44 1.44 30-year mortgage, fixed† 3.98 3.96 15-year mortgage, fixed† 3.20 3.16 Jumbo mortgages, $424,100-plus† 4.32 4.37 Five-year adj mortgage (ARM)† 3.42 3.39 New-car loan, 48-month 3.09 3.08 HELOC, $30,000 5.16 5.18

3-yr chg 52-Week Range (%) Low 0 2 4 6 8 High (pct pts)

0.25 l l 3.50 0.71 l 0.23 l 1.17 l l 3.44 l 2.70 l 4.02 l 3.07 l 2.87 l 4.57

1.25 4.25 1.31 0.36 1.44 4.33 3.50 4.88 4.03 3.36 5.18

1.00 1.00 1.08 -0.08 0.05 -0.39 -0.32 -0.35 -0.33 -0.11 0.59

Bankrate.com rates based on survey of over 4,800 online banks. *Base rate posted by 70% of the nation's largest banks.† Excludes closing costs.

Sources: SIX Financial Information; WSJ Market Data Group; Bankrate.com

Close

2017

Yield (%) Last Week ago

52-Week High Low

Total Return (%) 52-wk 3-yr

1459.239

1.981

2.040

2.237

1.233 –2.649 2.645

10-yr Treasury, Ryan ALM 1736.451 DJ Corporate 377.091 Aggregate, Barclays Capital 1930.400 High Yield 100, Merrill Lynch 2836.980 Fixed-Rate MBS, Barclays 1973.880 Muni Master, Merrill 518.717

2.266 2.950 2.510 4.988 2.820 1.873

2.348 3.021 2.540 5.273 2.870 1.971

2.609 3.390 2.790 6.448 3.120 2.516

1.458 2.488 1.860 4.988 1.990 1.328

0.388 1.346 0.036 9.525 0.273 0.452

790.380

5.515

5.600

6.290

5.134

4.479 4.760

Treasury, Ryan ALM

EMBI Global, J.P. Morgan

-4.85 -1.33 -5.20 -1.33 -0.46

-24.56 -16.99 -16.72 -14.78 -14.33

23.65 14.40 23.05 2.30 37.70 19.58 15.00 5.00 8.89 2.00

-21.7 109.7 -9.1 ...

-42.7

6.82 3.36 28.22 9.20 6.01

-1.05 -0.51 -4.19 -1.31 -0.77

-13.34 -13.18 -12.93 -12.46 -11.36

21.99 6.56 13.12 2.97 42.81 22.50 18.31 6.53 11.00 5.83

...

-49.4 -16.4 ...

-33.6

48.60 266.25 124.26 61.49 13.40

AVA UST BOTZ BVXV

FND WILC WES SRPT

Volume % chg from Latest Session (000) 65-day avg Close % chg

41.06 193.67 88.65 30.51 7.35

-3.0 4.3 9.1 -12.2 -24.3

52-Week High Low

719 8,051 601 3,041 322

4891 2893 2523 1463 1381

5.96 52.28 58.60 19.43 9.85

3.29 20.66 0.04 0.57 -1.39

22.28 4.96 52.42 37.78 64.70 54.55 19.45 14.69 10.72 3.04

131 7,753 138 4,814 19,817

1269 1238 1205 1158 966

52.37 38.50 7.24 53.20 40.93

0.10 -6.01 -2.82 -6.09 20.10

52.94 47.00 7.66 67.44 63.73

Country/currency

US$vs, YTDchg Thurs in US$ per US$ (%)

Americas Argentina peso .0581 17.2035 8.4 Brazil real .3204 3.1209 –4.1 Canada dollar .7942 1.2592 –6.3 Chile peso .001532 652.90 –2.5 Colombia peso .0003334 2999.63 –0.1 Ecuador US dollar 1 1 unch Mexico peso .0572 17.4859 –15.7 Peru new sol .3085 3.242 –3.3 Uruguay peso .03530 28.3300 –3.5 Venezuela b. fuerte .098464 10.1560 1.6

Asia-Pacific 2016

Corporate Borrowing Rates and Yields Bond total return index

14.90 6.50 25.90 7.67 2.75

50.33 29.37 4.20 46.85 22.33

U.S.-dollar foreign-exchange rates in late New York trading

10%

0

52-Week Low % chg

Currencies

Yen, euro vs. dollar; dollar vs. major U.S. trading partners

–5

High

* Common stocks priced at $5 a share or more with an average volume over 65 trading days of at least 5,000 shares =Has traded fewer than 65 days

Forex Race

2.00

Latest Session Close Net chg % chg

Ranked by change from 65-day average*

39,217 38,290 38,031 35,506 34,631

14.09 11.31 25.85 5.10 0.78

Sources: Ryan ALM; Tullett Prebon; WSJ Market Data Group Yield/Rate (%) Last (l)Week ago

NYSE Arca

* Primary market NYSE, NYSE MKT NYSE Arca only. †(TRIN) A comparison of the number of advancing and declining issues with the volume of shares rising and falling. An Arms of less than 1 indicates buying demand; above 1 indicates selling pressure.

41.61 -4.74 -10.23 238.62 -24.91 -9.45 POOL 106.75 -11.12 -9.43 SLCA 31.71 -3.27 -9.35 NTRA 9.75 -0.96 -8.96

APEN

3.00

1 2 3 5 710 years maturity

Nasdaq

Total volume*1,796,467,131 209,798,851 Adv. volume*1,027,465,349 98,154,344 Decl. volume* 732,256,769 108,293,440 Issues traded 2,997 1,336 Advances 1,497 811 Declines 1,310 479 Unchanged 190 46 New highs 190 325 New lows 32 29 Closing tick 165 20 Closing Arms† 0.81 1.72 Block trades* 7,197 1,211

ADS

Apollo Endosurgery Avista ProShrs Ultra 7-10 Yr Tr Global X Robotics AI Biondvax Pharm ADR

5.00%

t

INO

25.80 46.40 32.85 15.55 5.59

-0.50 -0.87 -0.93 1.85 19.66

23.94 11.34 26.69 13.80 2.80

s

Money market 0.00 account yields

Synchrony Bank Morristown, NJ

ADOM

-26.8 -15.1 25.9 -41.0 3292.0

t

0.30

IIIN

59,415 53,066 48,293 47,189 47,033

4.00

Thursday

FMSA

Symbol

notes and bonds

Goldman Sachs Bank USA 1.20% New York, NY 855-730-7283

CLDC

Company

Benchmark Yields Treasury yield curve andtoRates Yield maturity of current bills,

American Express Bank, FSB 1.15% New York, NY 866-215-8754

CKPT

52-Week High Low

* Volumes of 100,000 shares or more are rounded to the nearest thousand

0.32%

Bankrate.com avg†:

SHLM

Volume % chg from Latest Session (000) 65-day avg Close % chg

s

Selected rates

OMNT

Volume Movers

s

U.S. consumer rates

Symbol

3.25 3.49 8.95 6.85 2.24

CREDIT MARKETS & CURRENCIES Consumer Rates and Returns to Investor

Company

11.25 18.49 52.28 40.93 13.47

Most Active Stocks Company

NYSE MKT

Total volume* 751,998,083 7,189,800 Adv. volume* 311,949,897 3,163,051 Decl. volume* 420,734,763 3,742,785 Issues traded 3,077 329 Advances 1,483 155 Declines 1,445 147 Unchanged 149 27 New highs 215 4 New lows 8 5 Closing tick 1 42 Closing Arms† 1.47 1.01 Block trades* 5,854 95

Percentage Losers Latest Session Close Net chg % chg

Sources: SIX Financial Information; WSJ Market Data Group

t

0.02 247.21 246.95

2.3

Americas Brazil Canada Mexico Chile

2.669 4.040 2.630 3.703 2.364 3.003

Sources: J.P. Morgan; Ryan ALM; S&P Dow Jones Indices; Barclays Capital; Merrill Lynch

Australian dollar .7958 1.2566 China yuan .1477 6.7697 Hong Kong dollar .1280 7.8104 India rupee .01554 64.330 Indonesia rupiah .0000751 13316 Japan yen .008936 111.91 Kazakhstan tenge .003068 325.96 Macau pataca .1244 8.0404 Malaysia ringgit .2330 4.2915 New Zealand dollar .7400 1.3514 Pakistan rupee .00950 105.315 Philippines peso .0197 50.660 Singapore dollar .7322 1.3657 South Korea won .0008919 1121.24 Sri Lanka rupee .0065079 153.66 Taiwan dollar .03284 30.454

ONLINE Real-time U.S. stock quotes are available on WSJ.com. Track most-active stocks, new highs/lows, mutual funds and ETFs. Plus, get deeper money-flows data and email delivery of key stock-market data. All are available free at WSJMarkets.com

–9.5 –2.5 0.7 –5.3 –1.5 –4.4 –2.3 1.6 –4.3 –6.4 0.9 2.1 –5.6 –7.2 3.5 –6.2

US$vs, YTDchg Thurs in US$ per US$ (%)

Country/currency

.02979 33.570 –6.3 .00004399 22735 –0.2

Thailand baht Vietnam dong

Europe Czech Rep. koruna Denmark krone Euro area euro Hungary forint Iceland krona Norway krone Poland zloty Russia ruble Sweden krona Switzerland franc Turkey lira Ukraine hryvnia UK pound

.04465 22.397 –12.8 .1564 6.3939 –9.6 1.1632 .8597 –9.6 .003810 262.46 –10.8 .009483 105.45 –6.6 .1243 8.0455 –6.9 .2762 3.6212 –13.5 .01697 58.925 –3.8 .1216 8.2238 –9.7 1.0513 .9512 –6.6 .2836 3.5264 0.1 .0386 25.8975 –4.4 1.2973 .7708 –4.8

Middle East/Africa Bahrain dinar Egypt pound Israel shekel Kuwait dinar Oman sul rial Qatar rial Saudi Arabia riyal South Africa rand

2.6522 .3771 –0.03 .0560 17.8695 –1.5 .2813 3.5554 –7.6 3.3035 .3027 –1.0 2.5973 .3850 0.01 .2745 3.643 0.1 .2667 3.7500 –0.02 .0767 13.0385 –4.8 Close Net Chg % Chg YTD%Chg

WSJ Dollar Index 86.73 –0.27–0.31 –6.68

Sources: Tullett Prebon, WSJ Market Data Group

Commodities

COMMODITIES Thursday

52-Week

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

WSJ .COM

Low

SPDR S&P 500

8.0

World

Interest rate

After Hours % chg High

5.1

The Global Dow 2841.67 The Global Dow Euro 2299.91 DJ Global Index 369.30 DJ Global ex U.S. 248.97

A S O N D J F MAM J J 2016 2017

Net chg

Sources: SIX Financial Information; WSJ Market Data Group

Region/Country Index

Federal-funds target rate

Last

11.0

International Stock Indexes World

Volume (000)

11.4

0.58

Philadelphia Stock Exchange

Symbol

455.65

-0.20

11944.49 10289.35

Company

NYSE

532.19

-0.04

3.43 -0.21 -2.15

Volume, Advancers, Decliners

9742.76

High

-0.13

21661.91 21576.96 21611.78 -28.97

Trading Diary

Most-active and biggest movers among NYSE, NYSE Arca, NYSE MKT and Nasdaq issues from 4 p.m. to 6:30 p.m. ET as reported by electronic trading services, securities dealers and regional exchanges. Minimum share price of $2 and minimum after-hours volume of 5,000 shares.

Dow Jones Industrial Average

Late Trading

TR/CC CRB Index Crude oil, $ per barrel Natural gas, $/MMBtu Gold, $ per troy oz.

565.36

0.15

178.40 46.79 3.043 1244.80

-0.26 -0.33 -0.023 3.60

0.03

589.81

506.18

-0.14 195.14 54.45 -0.70 3.93 -0.75 0.29 1364.40

166.50 39.51 2.55 1127.80

% Chg

8.14

YTD % chg

-0.33

-2.87 -7.33 4.56 -12.90 13.04 -18.29 8.24 -6.44

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.

B8 | Friday, July 21, 2017

COMMODITIES Futures Contracts

Contract High hilo Low

Open

Metal & Petroleum Futures Contract Open High hi lo Low Settle Chg Copper-High (CMX)-25,000 lbs.; $ per lb.

2.7045 2.7090 2.7025 2.7085 0.0055 July Sept 2.7075 2.7230 2.6985 2.7160 0.0055 Gold (CMX)-100 troy oz.; $ per troy oz.

July 1236.60 1236.80 1236.60 1244.80 3.60 Aug 1240.60 1247.20 1234.60 1245.50 3.50 Oct 1244.00 1250.20 1238.00 1248.70 3.40 Dec 1247.40 1253.90 1241.50 1252.10 3.30 Feb'18 1249.60 1257.40 1245.40 1255.80 3.30 June 1256.30 1264.40 1254.90 1262.70 3.20 Palladium (NYM) - 50 troy oz.; $ per troy oz.

837.90 837.90 837.90 852.60 –11.55 July Aug 873.45 873.45 873.45 852.85 –11.55 Sept 857.50 857.90 833.55 847.60 –11.55 Dec 851.20 852.20 833.00 843.95 –11.50 Platinum (NYM)-50 troy oz.; $ per troy oz.

920.00 920.00 920.00 930.50 8.90 July Oct 923.00 934.50 915.50 933.20 9.00 Silver (CMX)-5,000 troy oz.; $ per troy oz.

16.180 16.325 16.135 16.299 0.048 July Sept 16.250 16.395 16.110 16.345 0.048 Crude Oil, Light Sweet (NYM)-1,000 bbls.; $ per bbl.

47.09 47.55 46.66 46.79 –0.33 Aug Sept 47.27 47.74 46.81 46.92 –0.40 Oct 47.44 47.91 47.00 47.10 –0.40 Dec 47.93 48.37 47.49 47.60 –0.39 June'18 48.74 49.07 48.31 48.41 –0.40 Dec 49.20 49.53 48.73 48.87 –0.40 NY Harbor ULSD (NYM)-42,000 gal.; $ per gal.

1.5504 1.5780 1.5416 1.5436 –.0078 Aug Sept 1.5546 1.5805 1.5459 1.5478 –.0074 Gasoline-NY RBOB (NYM)-42,000 gal.; $ per gal.

1.6152 1.6341 1.6028 1.6062 –.0107 Aug Sept 1.5768 1.5960 1.5685 1.5720 –.0064 Natural Gas (NYM)-10,000 MMBtu.; $ per MMBtu. 3.066 3.114 3.017 3.043 –.023 Aug Sept 3.058 3.101 3.008 3.033 –.022 Oct 3.091 3.131 3.042 3.066 –.022 Jan'18 3.393 3.424 3.349 3.371 –.021

3.312 2.907

March April

Open interest

3.339 2.917

Settle

3.275 2.895

Open interest

Chg

3.296 2.907

–.016 84,870 .003 102,149

Corn (CBT)-5,000 bu.; cents per bu.

Gold, per troy oz 1243.76 1337.04 1238.70 1374.95 *1239.85 *1242.15 1296.20 1308.67 1308.67 1510.72 1224.67 1308.67

Engelhard industrial Engelhard fabricated Handy & Harman base Handy & Harman fabricated LBMA Gold Price AM LBMA Gold Price PM Krugerrand,wholesale-e Maple Leaf-e American Eagle-e Mexican peso-e Austria crown-e Austria phil-e

Silver, troy oz.

16.3000 19.5600 16.3350 20.4190 £12.5048 16.1800

Engelhard industrial Engelhard fabricated Handy & Harman base Handy & Harman fabricated LBMA spot price (U.S.$ equivalent)

0.09 0.07

1.6 1.7

International rates Latest

Week ago

Prime rates 4.25 4.25 4.25 3.50 2.95 2.70 2.95 2.70 1.475 1.475 1.475 1.475

U.S. Canada Japan

Policy Rates Euro zone Switzerland Britain Australia

0.00 0.50 0.25 1.50

0.00 0.50 0.25 1.50

0.00 0.50 0.50 1.75

0.00 0.50 0.25 1.50

AlerianMLPETF CnsmrDiscSelSector CnsStapleSelSector DBGoldDoubleLgETN DBGoldDoubleShrt DeutscheXMSCIEAFE EnSelectSectorSPDR FinSelSectorSPDR GuggS&P500EW HealthCareSelSect IndSelSectorSPDR iShIntermCredBd iSh1-3YCreditBond iSh3-7YTreasuryBd iShCoreMSCIEAFEETF iShCoreMSCIEmgMk iShCoreMSCITotInt iShCoreS&P500ETF iShCoreS&PMdCp iShCoreS&PSmCpETF iShS&PTotlUSStkMkt iShCoreUSAggBd iShSelectDividend iShEdgeMSCIMinEAFE iShEdgeMSCIMinUSA iShGoldTr iShiBoxx$InvGrCpBd iShiBoxx$HYCpBd iShJPMUSDEmgBd iShMBSETF iShMSCIACWIETF iShMSCI EAFE iShMSCIEAFESC iShMSCIEmgMarkets iShMSCIEurozoneETF iShMSCIJapanETF iShNasdaqBiotech iShNatlMuniBdETF iShRussell1000Gwth iShRussell1000ETF iShRussell1000Val iShRussell2000Gwth iShRussell2000ETF iShRussell2000Val iShRussell3000ETF iShRussellMid-Cap iShRussellMCValue iShS&PMC400Growth iShS&P500Growth

AMLP XLY XLP DGP DZZ DBEF XLE XLF RSP XLV XLI CIU CSJ IEI IEFA IEMG IXUS IVV IJH IJR ITOT AGG DVY EFAV USMV IAU LQD HYG EMB MBB ACWI EFA SCZ EEM EZU EWJ IBB MUB IWF IWB IWD IWO IWM IWN IWV IWR IWS IJK IVW

11.95 91.07 54.99 22.97 5.89 30.42 65.76 24.80 94.29 81.08 68.91 110.06 105.43 123.88 62.40 52.63 59.26 248.74 177.32 71.60 56.61 109.73 92.97 70.33 49.58 11.95 121.27 88.80 115.02 106.96 67.20 66.81 59.34 43.66 41.66 54.26 322.92 110.85 122.44 137.46 116.94 172.66 143.20 120.10 146.46 194.76 84.86 200.32 141.17

–1.24 –5.2 –0.21 11.9 6.3 0.02 0.22 14.2 –0.34 –14.1 8.4 0.13 –0.30 –12.7 6.7 –0.04 8.8 –0.05 0.66 17.6 –0.56 10.8 1.7 0.01 0.5 0.01 1.1 ...

0.40 16.4 –0.04 24.0 0.30 17.4 0.05 10.6 7.2 –0.07 4.1 0.14 0.04 10.4 1.5 0.03 5.0 0.30 0.29 14.9 9.6 0.20 7.9 0.17 3.5 0.09 2.6 0.06 4.4 0.03 0.6 –0.02 0.10 13.6 0.41 15.7 0.27 19.1 –0.11 24.7 0.58 20.4 0.37 11.1 1.03 21.7 2.5 0.12 0.09 16.7 0.01 10.4 4.4 0.03 0.05 12.2 6.2 0.07 1.0 –0.02 0.05 10.1 8.9 –0.06 5.5 –0.18 9.9 –0.24 0.03 15.9

–.09 425,158 –.06 185,615

Sept Nov

26.95 27.02

26.95 27.02

26.95 26.90

26.95 26.93

.01 –.07

Oct Dec

69.52 68.10

69.77 69.25

69.37 68.10

69.55 68.98

Sept Nov

126.00 126.55

126.25 127.00

124.95 126.30

125.80 126.90

3.90 35,274 3.90 163,825

Aug Dec

33.46 33.92

34.03 34.50

33.42 33.85

33.97 34.45

.51 59,678 .57 166,640

Sept Nov

1177.00 1196.50

1206.00 1225.00

1174.00 1196.50

1200.00 1219.00

Sept Dec

504.50 528.25

508.25 531.50

495.00 518.75

505.75 529.25

2.75 199,071 2.50 131,313

Treasury Bonds (CBT)-$100,000; pts 32nds of 100%

Sept Dec

501.50 527.75

506.50 532.75

493.75 520.00

503.75 530.25

3.50 124,726 3.50 75,879

Treasury Notes (CBT)-$100,000; pts 32nds of 100%

Sept Dec

776.50 780.25

780.00 785.00

760.75 764.50

778.00 783.00

2.50 3.50

13.50 13.00

8,377 940

32,270 30,748

Aug Sept

154.650 154.450

154.975 154.975

152.025 152.100

152.275 –2.225 152.325 –2.125

Aug Oct

117.475 118.875

118.200 119.100

115.700 116.975

115.875 –1.400 69,615 117.075 –1.800 183,767

Aug Oct

82.650 68.700

82.800 69.075

81.050 67.775

81.100 –1.475 44,355 67.850 –.950 113,580

Cattle-Live (CME)-40,000 lbs.; cents per lb.

Hogs-Lean (CME)-40,000 lbs.; cents per lb.

Lumber (CME)-110,000 bd. ft., $ per 1,000 bd. ft.

393.30 375.10

Sept Nov

394.90 377.60

386.50 370.30

388.60 371.40

23,992 17,216

–.20 –1.90

3,357 671

Coffee (ICE-US)-37,500 lbs.; cents per lb.

Sugar-World (ICE-US)-112,000 lbs.; cents per lb.

Sugar-Domestic (ICE-US)-112,000 lbs.; cents per lb. t

Cotton (ICE-US)-50,000 lbs.; cents per lb.

t t

12311

0.5800 0.6805 *84.20 60.000 4.20

Grains and Feeds 4.70 69 3.5900 75.5 475.0 200 88 305 3.3325 390.00 21.88 7.9875 332.00

Barley,top-quality Mnpls-u Bran,wheat middlings, KC-u Corn,No. 2 yellow,Cent IL-bp,u Corn gluten feed,Midwest-u,w Corn gluten meal,Midwest-u,w Cottonseed meal-u,w Hominy feed,Cent IL-u,w Meat-bonemeal,50% pro Mnpls-u,w Oats,No.2 milling,Mnpls-u Rice, 5% Broken White, Thailand-l,w Rice, Long Grain Milled, No. 2 AR-u,w Sorghum,(Milo) No.2 Gulf-u SoybeanMeal,Cent IL,rail,ton48%-u

Thursday

9.8050 8.7300 5.0850 4.6475 5.4038

Soybeans,No.1 yllw IL-bp,u Wheat,Spring14%-pro Mnpls-u Wheat,No.2 soft red,St.Louis-bp,u Wheat - Hard - KC (USDA) $ per bu-u Wheat,No.1soft white,Portld,OR-u

Beef,carcass equiv. index choice 1-3,600-900 lbs.-u select 1-3,600-900 lbs.-u Broilers,dressed 'A'-u Broilers, National comp wghtd-u,w Butter,AA Chicago Cheddar cheese,bbl,Chicago Cheddar cheese,blk,Chicago Milk,Nonfat dry,Chicago lb.

Cocoa,Ivory Coast-w Coffee,Brazilian,Comp Coffee,Colombian, NY Eggs,large white,Chicago-u Flour,hard winter KC Hams,17-20 lbs,Mid-US fob-u Hogs,Iowa-So. Minnesota-u Pork bellies,12-14 lb MidUS-u Pork loins,13-19 lb MidUS-u Steers,Tex.-Okla. Choice-u Steers,feeder,Okla. City-u,w

187.03 174.39 n.a.

1.0625 2.6100 141.00 170.50 86.00 2219 1.3161 1.5515 0.7650 16.00 0.83 88.00 n.a.

1.2014 n.a.

167.38

Fats and Oils 37.0000 0.3150 n.a.

0.3322 0.3550 n.a.

Corn oil,crude wet/dry mill-u,w Grease,choice white,Chicago-h Lard,Chicago-u Soybean oil,crude;Centl IL-u Tallow,bleach;Chicago-h Tallow,edible,Chicago-u

July 20, 2017

—52-WEEK— High Low

Week Latest ago

1.07

1.38

0.15

U.S. government rates

Sept Dec Sept Dec

1.75

Sept Dec

153-270 154-220 152-230 153-130

153-250 152-210

126-005 126-085 125-220 125-295

125-310 125-205

118-035 118-080 117-262 117-262

118-030 117-262

108-040 108-050

108-037

30-year mortgage yields

1.75

1.00

1.2000 1.3125 1.1600 1.1700 1.1900

0.3300 0.5625 0.2000 0.2800 0.3000

3.482 3.547 3.865 2.808 3.508 3.577 3.899 2.837

30 days 60 days

Week Latest ago

52-Week high low

126-020 125-230

.5 3,141,900 .5 19,458

118-045 117-257

.2 3,000,140 .2 6,021

108-042

… 1,363,749

98.848 98.820

98.850 98.825

98.848 98.815

98.850 98.820

… 269,066 .005 274,001

10 Yr. Del. Int. Rate Swaps (CBT)-$100,000; pts 32nds of 100% Sept

102.031

102.234

101.922

101.984

–.094

30,847

1 Month Libor (CME)-$3,000,000; pts of 100% Aug Aug Sept Dec Dec'18

...

...

...

98.6800 98.6650 98.5500 98.2450

98.6800 98.6650 98.5550 98.2600

98.6700 98.6550 98.5400 98.2350

98.7725

…

98.6700 98.6550 98.5450 98.2400

Chg

Open interest

Currency Futures Japanese Yen (CME)-¥12,500,000; $ per 100¥ Aug Sept

.8950 .8959

.8979 .8993

.8905 .8917

.8939 –.0016 507 .8953 –.0017 247,704

Aug Sept

.7937 .7944

.7976 s .7982 s

.7915 .7918

.7949 .7953

Aug Sept

1.3040 1.3050

1.3041 1.3057

1.2944 1.2956

1.2984 –.0053 429 1.2999 –.0053 197,478

Sept Dec

1.0506 1.0557

1.0573 s 1.0632 s

1.0387 1.0466

1.0547 1.0609

Aug Sept Dec

.7950 .7947 .7942

.7987 s .7985 s .7970 s

.7896 .7893 .7881

.7959 .7955 .7945

Aug

.05484

.05489

.05448

.05683 –.00002

Aug Sept

1.1541 1.1554

1.1672 s 1.1694 s

1.1494 1.1514

1.1638 1.1659

Canadian Dollar (CME)-CAD 100,000; $ per CAD British Pound (CME)-£62,500; $ per £

Swiss Franc (CME)-CHF 125,000; $ per CHF

.0004 508 .0004 165,663

Australian Dollar (CME)-AUD 100,000; $ per AUD

Mexican Peso (CME)-MXN 500,000; $ per MXN Euro (CME)-€125,000; $ per €

.0038 .0038

42,406 287

.0006 525 .0006 118,401 .0006 1,644 64

.0104 1,766 .0104 437,626

3,321

–.0100 81,890 –.0100 1,501,921 –.0100 1,933,309 –.0100 1,351,825

Mini DJ Industrial Average (CBT)-$5 x index Sept Dec

21581 21535

21624 21579 s

21525 21488

21581 21536

Sept

2470.00

2475.90 s

2466.00

2471.20

–0.20

Sept Dec

2471.00 2468.25

2476.25 s 2474.00 s

2465.50 2463.50

2471.25 2469.00

–0.25 2,909,049 –0.25 28,293

Sept

1779.80

1783.50 s

1774.80

1778.20

–1.60

Sept Dec

5919.5 5926.0

5938.5 s 5943.8 s

5897.0 5904.3

5925.3 5932.3

7.0 283,720 7.3 1,039

Sept Dec

1441.50 1443.20

1445.40 s 1444.20 s

1438.30 1438.20

1442.10 1441.70

–.10 564,276 .50 112

Sept

1371.30

1371.80 s

1366.90

1370.10

1.00

8,024

Sept Dec

94.56 94.40

93.89 93.68

94.12 93.90

–.47 –.47

49,821 1,722

S&P 500 Index (CME)-$250 x index Mini S&P 500 (CME)-$50 x index

Mini S&P Midcap 400 (CME)-$100 x index Mini Nasdaq 100 (CME)-$20 x index

Mini Russell 2000 (ICE-US)-$100 x index Mini Russell 1000 (ICE-US)-$100 x index U.S. Dollar Index (ICE-US)-$1,000 x index t t

94.98 94.77

–15 130,945 –16 225 48,353

91,568

Source: SIX Financial Information

Bonds | WSJ.com/bonds Tracking Bond Benchmarks Return on investment and spreads over Treasurys and/or yields paid to investors compared with 52-week highs and lows for different types of bonds YTD total return (%)

Yield (%) Latest Low High

Index

2.7

1930.40

Total return close

YTD total return (%)

Yield (%) Latest Low High

Index

Mortgage-Backed Bloomberg Barclays

Broad Market Bloomberg Barclays 2.510 1.860 2.790

U.S. Aggregate

U.S. Corporate Indexes Bloomberg Barclays

1973.88

1.7

Mortgage-Backed

1944.26

1.3

Ginnie Mae (GNMA) 2.800 1.870 3.090

2.820 1.990 3.120

3.110 2.760 3.520

1156.67

1.8

Fannie mae (FNMA) 2.830 2.020 3.120

2605.21

3.3 Intermediate

2.630 2.190 3.010

1781.37

1.9

Freddie Mac (FHLMC) 2.840 2.030 3.130

3781.48

7.6 Long term

4.170 3.970 4.710

518.72

563.01

3.5 Double-A-rated

2.580 2.020 2.870

363.48

3.410 3.180 3.870

4.6

2752.56

U.S. Corporate

5.1

709.03

Triple-B-rated

High Yield Bonds Merrill Lynch 5.9

411.50

High Yield Constrained 5.437 5.437 6.927

4.0 Muni Master

1.873 1.328 2.516

4.6

7-12 year

1.872 1.374 2.618

403.83

4.7

12-22 year

2.417 1.688 3.047

389.50

5.0

22-plus year

2.903 2.139 3.622

Global Government J.P. Morgan†

Triple-C-rated

10.160 9.584 15.470

540.78

0.7

Global Government 1.430 0.820 1.560

2836.98

5.7

High Yield 100

4.988 4.988 6.448

755.51

0.3

Canada

1.950 1.240 2.020

372.25

5.7

Global High Yield Constrained 5.137 5.129 6.484

366.59

-0.6

EMU§

1.191 0.512 1.363

Europe High Yield Constrained 2.538 2.537 3.847

703.48

-0.4

France

0.920 0.270 1.210

Germany

0.560 -0.100 0.620

Japan

0.420 -0.020 0.460

Netherlands

0.690 0.020 0.760

U.K.

1.560 0.960 1.790

7.0

411.69

4.6

300.19

504.33 -2.0

U.S Agency Bloomberg Barclays 1636.05

1.9

U.S Agency

1.810 1.200 1.960

286.95

1464.99

1.3

10-20 years

1.620 1.030 1.750

555.74 -1.9

20-plus years

2.930 2.430 3.460

919.01

2.730 2.340 3.090

790.38

6.4

3326.38

3.9 Yankee

2435.28

-0.4 0.6 6.9

Emerging Markets ** 5.515 5.134 6.290

*Constrained indexes limit individual issuer concentrations to 2%; the High Yield 100 are the 100 largest bonds ** EMBI Global Index

† In local currency § Euro-zone bonds

Sources: Merrill Lynch; Bloomberg Barclays; J.P.Morgan

0.955 0.950 0.955 0.160 1.050 1.040 1.050 0.250 1.105 1.125 1.130 0.395

3.00

3.00

3.00

2.25

1.19

1.23

90 days

1.26

0.59

106.01 39.19 113.41 84.54 106.95 125.16 110.08 101.69 144.17 45.14 23.22 37.36 118.24 32.64 59.78 59.01 216.19 323.80 247.10 89.93 57.54 52.91 22.32 148.60 125.35 93.68 42.43 42.69 56.67 51.64 130.88 150.63 79.31 84.90 88.02 113.48 145.51 104.86 83.81 226.93 79.91 80.15 138.37 82.01 54.37 53.65 127.12 69.28 97.87 63.25 52.64

0.04 0.03 –0.25 ...

0.03 0.29 0.01 ...

0.13 0.11 0.17 0.11 0.14 0.43 0.05 0.02 –0.06 –0.11 0.04 0.21 0.21 0.72 0.63 0.09 0.06 0.05 0.33 –0.21 0.53 0.31 –0.02 0.66 0.20 0.08 0.09 0.07 –0.10 –0.09 –0.46 0.03 0.03 –0.01 ...

0.06 0.02 0.37 0.06 0.17 0.08 –0.09 0.53

4.6 5.3 0.2 0.1 2.0 5.1 13.0 0.4 21.7 8.6 –0.6 2.5 7.9 17.9 10.3 10.8 9.5 7.3 10.5 5.1 19.0 8.9 6.7 22.3 3.6 10.0 16.1 19.3 18.2 16.9 17.4 18.8 4.7 2.2 2.7 10.9 10.5 7.9 1.6 10.5 0.6 1.0 7.3 1.5 0.1 16.9 10.2 13.6 5.2 10.2 6.3

Country/ Coupon (%) Maturity, in years

1.250 2.375

Year ago

1.360 2.272

1.348 2.159

0.714 1.585

l

1.907

1.698

1.561

56.0

54.7

84.7

l

2.732

2.428

1.928

48.3

46.1

34.3

France 2 -0.413 t 10 0.778 t

l

-0.412

-0.483

-0.512

l

0.798

0.607

0.224

Germany 2 -0.642 t 10 0.530 t

l

-0.636

-0.663

-133.9

0.543

0.261

-0.625 -199.8 -0.008 -173.5

-199.7

l

-172.9

-159.3

0.012 t 2.120 t

l

0.059

-0.308

-0.058

-134.4

-130.1

-77.2

l

2.192

1.924

1.241

-14.4

-8.0

-34.3

Japan 2 -0.109 t 10 0.076 s

l

-0.109

-0.111

-0.326

-146.5

-146.9

-104.0

l

0.075

0.056

-0.239 -218.8

-219.6

-182.3

Spain 2 -0.317 t 10 1.491 t

l

-0.285

-0.307

-0.157

-164.5

-87.2

l

1.545

1.385

1.150

0.288 s 1.208 s

l

0.277

0.132

0.182

l

1.197

0.998

0.837

l

1.916 s 2.748 s

2.750

Australia 2 10

0.500 0.050

Italy 2

2.200

10

0.100 2.750 1.500

One month Three month Six month One year

1.22722 1.31250 1.45600 1.73789

1.22556 1.30361 1.45600 1.73789

1.22889 1.31250 1.46544 1.82761

0.48790 0.71450 1.03190 1.35890

One month Three month Six month One year

-0.402 -0.376 -0.303 -0.185

-0.401 -0.372 -0.306 -0.185

-0.369 -0.302 -0.191 -0.060

-0.405 -0.376 -0.308 -0.190

Euro interbank offered rate (Euribor) -0.374 -0.332 -0.274 -0.151

One month Three month Six month One year

Latest

-0.373 -0.331 -0.273 -0.151 Value Traded

-0.366 -0.296 -0.183 -0.045

-0.375 -0.332 -0.274 -0.163

52-Week High Low

DTCC GCF Repo Index 1.071 1.089

Treasury MBS

62.380 1.366 0.244 72.230 1.506 0.257

Open Implied Settle Change Interest Rate

DTCC GCF Repo Index Futures Treasury Jly Treasury Aug Treasury Sep

98.885 unch. 6421 1.115 98.880 unch. 2801 1.120 98.855 0.005 1548 1.145

Weekly survey Latest

Week ago Year ago

Freddie Mac 30-year fixed 15-year fixed Five-year ARM

3.96 3.23 3.21

4.03 3.29 3.28

3.45 2.75 2.78

Notes on data: U.S. prime rate is the base rate on corporate loans posted by at least 70% of the 10 largest U.S. banks, and is effective June 15, 2017. Other prime rates aren’t directly comparable; lending practices vary widely by location; Discount rate is effective June 15, 2017. DTCC GCF Repo Index is Depository Trust & Clearing Corp.'s weighted average for overnight trades in applicable CUSIPs. Value traded is in billions of U.S. dollars.

Federal-funds rates are Tullett Prebon rates as of 5:30 p.m. ET. Futures on the DTCC GCF Repo Index are traded on NYSE Liffe US. Sources: Federal Reserve; Bureau of Labor Statistics; DTCC; SIX Financial Information; General Electric Capital Corp.; Tullett Prebon Information, Ltd.

Spread Under/Over U.S. Treasurys, in basis points Latest Prev Year ago

Month ago

l

2.750

0.000

Yield (%) Latest(l) 0 20 40 60 80 100 120 Previous

U.S. 2 1.356 t 10 2.265 t

1.750

U.K. 2

4.250

10

Libor

Euro Libor

Closing Chg YTD Symbol Price (%) (%)

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

0.100

Call money Commercial paper (AA financial)

Treasury bill auction

IVE PFF TIP SHY IEF TLT IWP MINT QQQ SPLV BKLN JNK GLD SCHF SCHB SCHX DIA MDY SPY SDY XLK XLU GDX VGT VBR VIG VEA VWO VGK VEU VUG VHT VYM BIV VCIT VV VO VOE VNQ VOO BSV VCSH VB BND BNDX VXUS VTI VT VTV HEDJ DXJ

4.0 724,344 4.0 431

30 Day Federal Funds (CBT)-$5,000,000; 100 - daily avg.

July Oct

Settle

Index Futures

154-020 152-250

2 Yr. Treasury Notes (CBT)-$200,000; pts 32nds of 100% Sept

1.000

Other short-term rates 1.1800 1.3125 1.1400 1.1500 1.1800

8,377 2,044

5 Yr. Treasury Notes (CBT)-$100,000; pts 32nds of 100%

0.000

Fannie Mae

Federal funds

iShS&P500ValueETF iShUSPfdStk iShTIPSBondETF iSh1-3YTreasuryBd iSh7-10YTreasuryBd iSh20+YTreasuryBd iShRussellMCGrowth PIMCOEnhShMaturity PwrShQQQ 1 PwrShS&P500LoVol PwrShSrLoanPtf SPDRBloomBarcHYBd SPDR Gold SchwabIntEquity SchwabUS BrdMkt SchwabUS LC SPDR DJIA Tr SPDR S&PMdCpTr SPDR S&P 500 SPDR S&P Div TechSelectSector UtilitiesSelSector VanEckGoldMiner VangdInfoTech VangdSC Val VangdDivApp VangdFTSEDevMk VangdFTSE EM VangdFTSE Europe VangdFTSEAWxUS VangdGrowth VangdHlthCr VangdHiDiv VangdIntermBd VangdIntrCorpBd VangdLC VangdMC VangdMC Val VangdREIT VangdS&P500 VangdST Bond VangdSTCpBd VangdSC VangdTotalBd VangdTotIntlBd VangdTotIntlStk VangdTotalStk VangdTotlWrld VangdValue WisdTrEuropeHdg WisdTrJapanHdg

—52-WEEK— High Low

Secondary market

Discount

1.1800 1.3125 1.1300 1.1600 1.1700

.30 .30

Contract High hilo Low

Open

Global Government Bonds: Mapping Yields

Overnight repurchase 1.08

1,985 1,991

Interest Rate Futures

Total return close

Food

5,215 4,993

.79 162 .87 162,443

Orange Juice (ICE-US)-15,000 lbs.; cents per lb.

Eurodollar (CME)-$1,000,000; pts of 100%

Largest 100 exchange-traded funds, latest session

ETF

14.41 15.15

330.50 338.10

Fibers and Textiles

ETF

14.33 15.04

324.80 332.20

Exchange-Traded Portfolios | WSJ.com/ETFresearch Thursday, July 20, 2017 Closing Chg YTD Symbol Price (%) (%)

14.63 15.31

332.50 340.10

Burlap,10-oz,40-inch NY yd-n,w Cotton,1 1/16 std lw-mdMphs-u Cotlook 'A' Index-t Hides,hvy native steers piece fob-u Wool,64s,staple,Terr del-u,w

4 weeks 13 weeks 26 weeks

14.60 15.27

326.60 334.10

LBMA Platinum Price PM *925.0 Platinum,Engelhard industrial 921.0 Platinum,Engelhard fabricated 1021.0 Palladium,Engelhard industrial 853.0 Palladium,Engelhard fabricated 953.0 Aluminum, LME, $ per metric ton *1907.0 Copper,Comex spot 2.7085 Iron Ore, 62% Fe CFR China-s 67.3 Shredded Scrap, US Midwest-s,w 296 Steel, HRC USA, FOB Midwest Mill-s 616

Effective rate High Low Bid Offer

Oct March'18

Aug Dec

Cattle-Feeder (CME)-50,000 lbs.; cents per lb.

1.75

52-Week High Low

–.80 106,934 –.80 56,822

13.50 82,653 14.50 339,816

Other metals

U.S.

135.00 138.55

1013.25 1027.00

Week Latest ago

244.955 252.014

All items Core

134.15 137.65

995.00 1008.25

Key annual interest rates paid to borrow or lend money in U.S. and international markets. Rates below are a guide to general levels but don’t always represent actual transactions.

U.S. consumer price index

135.80 139.35

1017.25 1031.25

Borrowing Benchmarks | WSJ.com/bonds Money Rates

Chg From (%) May '17 June '16

135.10 138.75

999.00 1012.00

1,470 4,849

KEY TO CODES: A=ask; B=bid; BP=country elevator bids to producers; C=corrected; E=Manfra,Tordella & Brooks; G=ICE; H=Hurley Brokerage; I=Natural Gas Intelligence; L=livericeindex.com; M=midday; N=nominal; n.a.=not quoted or not available; R=SNL Energy; S=The Steel Index; T=Cotlook Limited; U=USDA; W=weekly, Z=not quoted. *Data as of 7/19 Source: WSJ Market Data Group

June index level

Sept Dec

Aug Nov

Thursday

Inflation

12 129,002 14 73,375

2.75 3.50

Coins,wholesale $1,000 face-a

Metals

1,956 1,993

295.75 297.50

Thursday

0.6739 0.8129 3.100 3.060 3.140 2.750 2.760 2.130 3.000 52.750 11.650

1,933 1,968

289.25 292.25

Thursday, July 20, 2017 These prices reflect buying and selling of a variety of actual or “physical” commodities in the marketplace— separate from the futures price on an exchange, which reflects what the commodity might be worth in future months.

Propane,tet,Mont Belvieu-g Butane,normal,Mont Belvieu-g NaturalGas,HenryHub-i NaturalGas,TranscoZone3-i NaturalGas,TranscoZone6NY-i NaturalGas,PanhandleEast-i NaturalGas,Opal-i NaturalGas,MarcellusNE PA-i NaturalGas,HaynesvilleN.LA-i Coal,C.Aplc.,12500Btu,1.2SO2-r,w Coal,PwdrRvrBsn,8800Btu,0.8SO2-r,w

1,973 2,006

297.00 298.50

Cash Prices | WSJ.com/commodities

Energy

1,946 1,982

–.05 –.25

292.25 296.00

Wheat (MPLS)-5,000 bu.; cents per bu.

87,585 296,480 190,470 117,071

15.51 16.30

Sept Dec

Wheat (KC)-5,000 bu.; cents per bu.

45,890 125,459

15.50 16.27

8.50 556,082 8.50 552,686

Wheat (CBT)-5,000 bu.; cents per bu.

54,110 117,037

Sept Dec

t

391.00 404.75

Rough Rice (CBT)-2,000 cwt.; $ per cwt.

20,387 634,987 170,113 326,958 125,301 169,604

15.54 16.56

380.50 394.50

Soybean Oil (CBT)-60,000 lbs.; cents per lb.

163 153,013

15.53 16.53

393.25 406.75

Soybean Meal (CBT)-100 tons; $ per ton.

15 65,725

Milk (CME)-200,000 lbs., cents per lb.

July Aug

Open interest

Chg

382.50 396.25

Soybeans (CBT)-5,000 bu.; cents per bu.

7 4 30,008 3,320

Settle

Sept Dec

Oats (CBT)-5,000 bu.; cents per bu.

12 193,720 24,152 215,431 15,306 8,140

Contract High hilo Low

Open

Cocoa (ICE-US)-10 metric tons; $ per ton.

Agriculture Futures

1,521 139,906

WSJ.com/commodities

-176.9 -148.6

-167.3

-177.2

-122.7

-147.4

-136.1

-72.6

-43.4

-106.9

-108.3

-53.2

-105.7

-107.5

-74.7

-77.3

Source: Tullett Prebon

Corporate Debt in that same company’s share price.

Investment-grade spreads that tightened the most…

Maturity

Current

Spread*, in basis points One-day change

Last week

Stock Performance Close ($) % chg

Issuer

Symbol Coupon (%)

Citizens Bank Nissan Motor Acceptance Progress Energy Citigroup

CFG NSANY DUK C

2.450 Dec. 4, ’19 2.550 March 8, ’21 4.875 Dec. 1, ’19 3.200 Oct. 21, ’26

45 –26 33 –18 74 –14 122 –13

72 47 n.a.

124

35.25 ... ...

66.36

–0.06 ... ...

–0.51

Siemens Financieringsmaatschappij* Wells Fargo Sabine Pass Liquefaction Toronto–Dominion Bank*

SIEGR WFC CQP TD

2.200 March 16, ’20 2.150 Jan. 30, ’20 5.625 March 1, ’25 1.800 July 13, ’21

23 35 160 25

–12 –11 –10 –10

35 42 170 40

...

54.88 ...

52.03

...

–0.11 ...

0.42

86 223 134 167

... ...

44.22 ...

... ...

1.77 ...

83 135 153 187

23.94 48.08 26.47 20.49

–0.50 –0.15 –0.60 –1.44

…And spreads that widened the most Ford Motor Credit Kinder Morgan Energy Partners Verizon Communications Enbridge

F KMI VZ ENBCN

3.157 5.000 2.625 4.500

Aug. 4, ’20 Aug. 15, ’42 Aug. 15, ’26 June 10, ’44

84 227 137 165

Bank of America Coach Plains All American Pipeline Energy Transfer

BAC COH PAA ETP

4.000 3.000 2.850 4.750

April 1, ’24 July 15, ’22 Jan. 31, ’23 Jan. 15, ’26

89 130 155 181

29 11 11 8 6 6 6 5

High-yield issues with the biggest price increases…

Maturity

Bond Price as % of face value Current One-day change

Last week

Stock Performance Close ($) % chg

Issuer

Symbol

Coupon (%)

Calumet Specialty Products Partners Freeport–McMoRan Intelsat Luxembourg ADT

CLMT FCX INTEL ADT

7.625 5.400 8.125 4.875

Jan. 15, ’22 Nov. 14, ’34 June 1, ’23 July 15, ’32

92.000 95.000 57.500 89.060

2.00 2.00 1.63 1.56

86.219 90.750 54.000 n.a.

4.95 13.04 ... ...

5.32 –0.53 ... ...

SemGroup Weatherford International United Rentals Frontier Communications

RRMS WFT URI FTR

5.625 4.500 5.500 9.000

Nov. 15, ’23 April 15, ’22 May 15, ’27 Aug. 15, ’31

97.750 90.750 105.188 79.375

1.50 1.50 1.44 1.38

n.a.

87.500 103.250 77.520

...

4.48 122.54 14.91

...

–1.54 3.24 4.34

102.938 101.375 104.250 97.250

23.22 16.68 ...

8.02

2.38 –4.85 ...

–4.30

n.a.

109.500 74.750 66.500

2.04 8.38 ...

5.46

–0.49 –0.36 ...

–4.04

…And with the biggest price decreases CenturyLink Hertz Park Aerospace Holdings Atwood Oceanics

CTL HTZ AVOL ATW

5.800 March 15, ’22 7.625 June 1, ’22 5.500 Feb. 15, ’24 6.500 Feb. 1, ’20

103.469 –1.50 101.500 –1.50 –1.31 103.688 –1.25 96.000

W&T Offshore Sprint Communications Acosta ENSCO

WTI S ACOSTA ESV

8.500 7.000 7.750 5.750

70.000 109.625 73.000 67.000

June 15, ’19 Aug. 15, ’20 Oct. 1, ’22 Oct. 1, ’44

–1.20 –1.05 –1.00 –1.00

*Estimated spread over 2-year, 3-year, 5-year, 10-year or 30-year hot-run Treasury; 100 basis points=one percentage pt.; change in spread shown is for Z-spread.

Note: Data are for the most active issue of bonds with maturities of two years or more Sources: MarketAxess Corporate BondTicker; WSJ Market Data Group

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.

Friday, July 21, 2017 | B9

BIGGEST 1,000 STOCKS WSJ.com/stocks

How to Read the Stock Tables

The following explanations apply to NYSE, NYSE Arca, NYSE MKT and Nasdaq Stock Market listed securities. Prices are composite quotations that include primary market trades as well as trades reported by Nasdaq OMX BXSM (formerly Boston), Chicago Stock Exchange, CBOE, National Stock Exchange, ISE and BATS. The list comprises the 1,000 largest companies based on market capitalization.

Underlined quotations are those stocks with large changes in volume compared with the issueâ&#x20AC;&#x2122;s average trading volume.

Boldfaced quotations highlight those issues whose price changed by 5% or more if their previous closing price was $2 or higher.

Footnotes: s-New 52-week high. t-New 52-week low. dd-Indicates loss in the most recent four quarters.

FD-First day of trading. h-Does not meet continued listing standards lf-Late filing q-Temporary exemption from Nasdaq requirements. t-NYSE bankruptcy v-Trading halted on primary market. vj-In bankruptcy or receivership or being reorganized under the Bankruptcy Code, or securities assumed by such companies.

Thursday, July 20, 2017

Stock

Stock

Net Sym Close Chg

NYSE s s s s

s s s

s

s

s

s

s t s

t s

ABB ABB 24.39 -0.70 AES AES 11.37 0.05 Aflac AFL 77.68 -0.21 AGCO AGCO 71.52 0.02 AT&T T 36.52 0.39 AbbottLabs ABT 50.85 1.42 AbbVie ABBV 74.01 1.24 Accenture ACN 128.54 0.76 AcuityBrands AYI 203.50 -0.65 Adient ADNT 70.60 0.37 AdvanceAuto AAP 103.23 2.36 AdvSemiEngg ASX 6.55 -0.01 Aegon AEG 5.39 0.05 AerCap AER 49.91 1.04 Aetna AET 155.73 1.49 AffiliatedMgrs AMG 177.91 0.92 AgilentTechs A 60.98 -0.40 AgnicoEagle AEM 45.63 0.69 Agrium AGU 100.33 0.26 AirProducts APD 146.01 -0.20 AlaskaAir ALK 89.10 -1.17 Albemarle ALB 117.91 -1.25 Alcoa AA 36.72 0.22 AlexandriaRealEst ARE 122.07 -0.02 Alibaba BABA 152.11 -1.04 Alleghany Y 611.97 3.97 Allegion ALLE 81.09 0.39 Allergan AGN 249.07 2.66 AllianceData ADS 238.62 -24.91 AllianceBernstein AB 24.65 -0.05 AlliantEnergy LNT 41.01 0.51 AllisonTransm ALSN 37.00 -0.58 Allstate ALL 89.22 -0.03 AllyFinancial ALLY 21.53 0.09 AlticeUSA ATUS 31.44 -0.20 Altria MO 73.59 0.04 AlumofChina ACH 14.99 -0.52 Ambev ABEV 5.94 ...

Ameren AEE 56.14 0.48 AmericaMovil AMX 17.27 -0.02 AmericaMovil A AMOV 17.24 0.14 AmCampus ACC 48.89 0.14 AEP AEP 68.70 0.05 AmericanExpress AXP 85.35 -0.58 AmericanFin AFG 100.94 0.36 AmerHomes4Rent AMH 22.88 -0.03 AIG AIG 64.23 0.04 AmerTowerREIT AMT 136.24 0.82 AmerWaterWorks AWK 81.00 0.98 Amerigas APU 45.08 -0.62 Ameriprise AMP 136.79 0.75 AmerisourceBrgn ABC 91.95 0.78 Ametek AME 61.14 -0.48 Amphenol APH 75.66 0.08 AnadarkoPetrol APC 43.84 -1.07 AB InBev BUD 115.51 0.70 AnnalyCap NLY 11.75 -0.01 AnteroMidstream AM 34.14 0.04 AnteroResources AR 21.35 -0.81 Anthem ANTM 190.69 0.40 Aon AON 138.84 0.77 Apache APA 49.35 -0.51 ApartmtInv AIV 43.90 0.17 ApolloGlobalMgmt APO 27.87 0.17 Aptargroup ATR 89.70 -0.39 AquaAmerica WTR 33.30 0.32 Aramark ARMK 40.68 -0.04 ArcelorMittal MT 25.67 -0.43 ArcherDaniels ADM 41.42 0.14 Arconic ARNC 24.75 -0.37 AristaNetworks ANET 156.80 -0.83 ArrowElec ARW 82.49 0.16 Assurant AIZ 105.71 -0.21 AstraZeneca AZN 33.89 0.29 Athene ATH 50.36 0.26 AtmosEnergy ATO 85.53 0.94 Autoliv ALV 115.89 -1.37 AutoZone AZO 502.56 9.12 Avalonbay AVB 190.12 -0.05 Avangrid AGR 45.05 -0.10 AveryDennison AVY 94.06 -0.01 AxaltaCoating AXTA 33.00 -0.54 BB&T BBT 46.26 1.50 BCE BCE 46.65 0.37 BHPBilliton BHP 39.21 -0.60 BHPBilliton BBL 34.17 -0.45 BP BP 35.10 0.07 BRF BRFS 11.88 0.09 BT Group BT 20.35 0.30 BakerHughes BHGE 34.97 -1.57 Ball BLL 42.42 -0.11 BancoBilbaoViz BBVA 8.75 0.08 BancodeChile BCH 84.49 4.42 BancoMacro BMA 86.50 -0.97

s s s s

s s s

s s s

s

s

s s

s

s

Net Sym Close Chg

BcoSantChile BSAC 26.02 0.03 BancoSantander SAN 6.67 0.12 BanColombia CIB 43.94 -0.07 BankofAmerica BAC 23.94 -0.12 BankofMontreal BMO 76.87 0.14 BankNY Mellon BK 53.91 0.85 BkNovaScotia BNS 62.22 0.10 Barclays BCS 10.81 0.08 Bard CR BCR 321.90 1.21 BarrickGold ABX 16.32 0.19 BaxterIntl BAX 63.04 0.59 BectonDickinson BDX 203.33 1.31 Berkley WRB 70.17 0.79 BerkHathwy A BRK/A 257651151.00 BerkHathwy B BRK/B 171.33 0.13 BerryGlobal BERY 57.36 -0.83 BestBuy BBY 53.96 -2.21 Bio-RadLab A BIO 233.84 -2.16 Bio-RadLab B BIO/B 235.05 10.55 BlackKnightFin BKFS 42.15 0.15 BlackRock BLK 427.28 0.82 BlackstoneGroup BX 34.28 -0.50 BlockHR HRB 30.59 0.31 BoardwalkPipe BWP 17.32 -0.20 Boeing BA 210.28 -0.60 BorgWarner BWA 46.29 -0.47 BostonProperties BXP 118.81 -1.55 BostonScientific BSX 27.73 -0.20 Braskem BAK 25.45 0.48 Bristol-Myers BMY 55.44 0.37 BrixmorProp BRX 18.76 -0.02 BroadridgeFinl BR 75.25 -0.28 BrookfieldMgt BAM 39.89 0.18 BrookfieldInfr BIP 40.28 0.49 Brown&Brown BRO 43.88 0.11 Brown-Forman A BF/A 49.71 0.04 Brown-Forman B BF/B 48.13 -0.04 Brunswick BC 59.65 -3.31 BuckeyePtrs BPL 63.67 -0.70 Bunge BG 79.58 0.89 BurlingtonStores BURL 87.49 -2.98 CBD Pao CBD 21.02 0.46 CBRE Group CBG 37.89 0.07 CBS A CBS/A 66.44 0.89 CBS B CBS 65.86 0.88 CF Industries CF 31.13 0.32 CGI Group GIB 52.40 0.17 CIT Group CIT 49.45 -0.21 CMS Energy CMS 46.59 0.35 CNA Fin CNA 49.50 -0.06 CNOOC CEO 111.60 -1.09 CPFLEnergia CPL 17.07 0.10 CRH CRH 35.78 -0.36 CVS Health CVS 77.16 0.27 CabotOil COG 25.00 -0.17 CAE CAE 17.50 -0.09 CamdenProperty CPT 88.36 0.16 CampbellSoup CPB 51.92 -0.65 CIBC CM 86.78 0.17 CanNtlRlwy CNI 82.01 -0.53 CanNaturalRes CNQ 30.36 -0.12 CanPacRlwy CP 162.39 0.70 Canon CAJ 34.61 0.57 CapitalOne COF 81.01 -0.37 CardinalHealth CAH 77.32 0.32 Carlisle CSL 99.71 0.05 CarMax KMX 64.38 -0.45 Carnival CCL 67.58 0.81 Carnival CUK 67.54 0.64 Caterpillar CAT 107.32 -0.53 Celanese A CE 98.30 -1.49 Cemex CX 9.98 0.14 CenovusEnergy CVE 7.61 -0.07 Centene CNC 85.40 0.75 CenterPointEner CNP 28.05 0.42 CentraisElBras EBR 4.53 0.02 CenturyLink CTL 23.22 0.54 Chemours CC 44.81 -0.34 Chevron CVX 104.63 0.17 ChinaEastrnAir CEA 29.38 -0.54 ChinaLifeIns LFC 16.44 -0.09 ChinaMobile CHL 52.72 -0.58 ChinaPetrol SNP 77.63 -0.56 ChinaSoAirlines ZNH 40.80 -1.01 ChinaTelecom CHA 47.90 -0.54 ChinaUnicom CHU 14.58 -0.19 Chipotle CMG 356.05 -16.78 Chubb CB 146.62 0.07 ChunghwaTelecom CHT 34.65 -0.13 Church&Dwight CHD 52.99 0.04 Cigna CI 174.49 0.18 CimarexEnergy XEC 95.65 -1.08 Citigroup C 66.36 -0.34 CitizensFin CFG 35.25 -0.02 Clorox CLX 130.89 0.36 Coach COH 48.08 -0.07 Coca-Cola KO 44.82 -0.01

Stock

s s

s s

s

s

s

Net Sym Close Chg

Coca-Cola Euro CCE 42.01 Coca-Cola Femsa KOF 90.86 Colgate-Palmolive CL 72.09 ColonyNorthStar CLNS 14.51 Comerica CMA 72.43 SABESP SBS 11.20 ConagraBrands CAG 33.75 ConchoRscs CXO 126.47 ConocoPhillips COP 43.23 ConEd ED 82.41 ConstBrands A STZ 198.12 ContinentalRscs CLR 32.44 Cooper COO 254.00 Corning GLW 31.71 Coty COTY 18.89 Credicorp BAP 185.16 CreditSuisse CS 15.27 CrestwoodEquity CEQP 24.40 CrownCastle CCI 97.27 CrownHoldings CCK 59.85 Cullen/Frost CFR 95.24 Cummins CMI 164.43 DTE Energy DTE 106.77 DXC Tech DXC 78.64 Danaher DHR 83.20 Darden DRI 89.57 DaVita DVA 66.42 Deere DE 125.60 DellTechnologies DVMT 63.94 DelphiAutomotive DLPH 93.10 DeltaAir DAL 52.83 DeutscheBank DB 18.46 DevonEnergy DVN 31.99 Diageo DEO 121.45 DigitalRealty DLR 112.11 DiscoverFinSvcs DFS 61.37 Disney DIS 107.36 DollarGeneral DG 71.35 DominionEner D 76.95 Domino's DPZ 212.44 Donaldson DCI 47.17 DouglasEmmett DEI 37.96 Dover DOV 83.17 DowChemical DOW 66.39 DrPepperSnap DPS 91.26 DrReddy'sLab RDY 42.23 DuPont DD 84.83 DukeEnergy DUK 84.93 DukeRealty DRE 27.98 ENI E 30.70 EOG Rscs EOG 93.66 EQT EQT 61.96 EQT Midstream EQM 76.29 EastmanChem EMN 85.68 Eaton ETN 79.56 EatonVance EV 48.92 Ecolab ECL 132.45 Ecopetrol EC 9.37 EdisonInt EIX 78.45 EdwardsLife EW 119.42 EmersonElectric EMR 60.30 EnbridgeEnPtrs EEP 16.11 Enbridge ENB 41.90 Encana ECA 9.67 EnelAmericas ENIA 10.40 EnelGenChile EOCC 24.20 EnergyTrfrEquity ETE 18.04 EnergyTransfer ETP 20.49 EnLinkMidPtrs ENLK 17.12 Entergy ETR 76.47 EnterpriseProd EPD 27.68 EnvisionHlthcr EVHC 62.94 Equifax EFX 142.99 EquityLife ELS 87.51 EquityResdntl EQR 67.16 EssexProp ESS 264.17 EsteeLauder EL 97.11 EverestRe RE 269.11 EversourceEner ES 61.21 Exelon EXC 37.60 ExtraSpaceSt EXR 78.23 ExxonMobil XOM 80.86 FMC FMC 75.79 FactSet FDS 165.57 FederalRealty FRT 130.00 FedEx FDX 211.88 FiatChrysler FCAU 11.96 FibriaCelulose FBR 10.77 FidelityNatlFin FNF 45.82 FNFV Group FNFV 16.05 FidelityNtlInfo FIS 89.81 58.com WUBA 50.00 FirstData FDC 18.54 FirstRepBank FRC 100.37 FirstEnergy FE 31.23 FleetCorTech FLT 149.00 Flowserve FLS 46.59

New Highs and Lows | WSJ.com/newhighs

Thursday, July 20, 2017 Stock

52-Wk % Sym Hi/Lo Chg Stock

NYSE highs - 215 AGCO AGCO AVX AVX AbbottLabs ABT AbbVie ABBV Accenture ACN AdamsDivEquityFd ADX AerCap AER Aetna AET AffiliatedMgrs AMG AirLease AL AlexandriaRealEst ARE AllianzGIConv&Incm NCV AllianzGIEqtyConv NIE AmHomes4RentPfdE AMHpE Ameriprise AMP Aon AON ApolloGlMgmtPfdA APOpA ArrowElec ARW ArtisanPtrsAsset APAM AssuredGuaranty AGO AtmosEnergy ATO AveryDennison AVY Avista AVA BWX Tech BWXT BadgerMeter BMI BancodeChile BCH BankNY Mellon BK Bard CR BCR BarnesGroup B BaxterIntl BAX BectonDickinson BDX Bio-RadLab B BIO/B Bio-RadLab A BIO BlackKnightFin BKFS BlkRkEnhGlbDiv BOE BlkRkIntlGrInco BGY BlkRkMultiIT BIT BlkRkSci&Tech BST Boeing BA BorgWarner BWA BoydGaming BYD Braskem BAK Brink's BCO BylineBancorp BY CBRE Group CBG CPFLEnergia CPL CSRA CSRA CableOne CABO CapitalOnePfdH COFpH Carnival CCL Carnival CUK Centene CNC ChinaFund CHN ChinaYuchai CYD Cigna CI CitigrpCapXIIIPf CpN CLSelPrTechGrFd STK ConstBrands A STZ Corning GLW CrossAmerPtrs CAPL DCT Industrial DCT Dana DAN DelEnhGlDivInc DEX DtscheBkTrII DXB DivRealAssetIncmFd DRA DNB Select DNP DoubleLineIncm DSL DowChemical DOW DuPont DD DupontFabrosPfdC DFTpC ESCO Tech ESE EatonVance EV EtnVncHiIncm2021 EHT EtnVncTxAdvOpp ETO EmployersHldgs EIG Ennis EBF EquityLife ELS ExtendedStayAmer STAY FairIsaac FICO FederalSignal FSS Ferrari RACE FidelityNatlFin FNF FirstAmerFin FAF FT AberEmgOpp FEO ForestCIty A FCE/A FranklinRscs BEN GMACCapTrSer2 ALLYpA GabelliConv GCV GabelliDividend GDV GabelliGlbSmall&MC GGZ Gartner IT GenAmInv GAM

71.72 18.08 51.13 74.22 128.76 14.72 50.24 155.97 179.81 41.44 123.18 7.19 20.35 26.70 137.37 139.06 26.25 82.78 33.15 45.06 85.68 94.47 52.42 51.29 41.95 86.07 54.59 321.97 62.23 63.08 204.01 235.05 238.00 43.35 13.59 6.47 18.34 23.95 211.25 47.00 26.30 25.65 71.70 21.39 38.07 17.10 33.61 744.42 26.60 67.80 67.76 86.02 19.35 21.44 175.05 27.03 23.49 199.89 31.77 29.80 56.08 24.10 11.76 25.75 17.85 11.34 21.05 66.89 85.48 28.75 63.25 49.40 10.23 26.19 44.25 19.75 88.16 20.18 143.98 18.22 100.08 47.05 46.37 16.97 25.15 47.05 26.49 5.35 22.27 12.79 129.24 35.40

...

-0.1 2.9 1.7 0.6 ...

2.1 1.0 0.5 2.2 ...

0.4 -0.1 -0.4 0.6 0.6 1.0 0.2 1.2 0.4 1.1 ...

20.7 0.4 0.8 5.5 1.6 0.4 1.3 0.9 0.6 4.7 -0.9 0.4 -0.1 0.5 -0.2 0.1 -0.3 -1.0 -0.1 1.9 1.8 -3.6 0.2 0.6 1.3 0.3 0.4 1.2 1.0 0.9 0.5 0.9 0.1 1.8 1.7 -0.1 -0.1 1.4 -1.5 -0.8 0.5 0.6 0.2 0.4 0.4 -0.6 -0.6 -0.7 0.9 -0.2 -0.1 ...

0.2 1.3 0.1 -0.2 -0.3 0.8 2.4 -0.6 ...

1.6 -0.3 0.5 0.2 1.1 0.4 0.3 -1.1 -0.3

52-Wk % Sym Hi/Lo Chg Stock

28.70 Genpact G 9.67 GeoPark GPRK 93.87 GlobalPayments GPN GreenDot GDOT 40.38 GpFinSantandMex BSMX 10.70 92.16 HDFC Bank HDB 54.20 HartfordFinl HIG Honeywell HON 136.41 61.83 IndustrsBachoco IBA 30.95 Instructure INST IntlSeaways INSW 22.93 25.58 Interpublic IPG 17.65 HancockHdgEquity HEQ 137.08 J&J JNJ 129.76 JonesLangLaSalle JLL 52.02 KB Fin KB 17.66 KT KT 42.19 KoreaFund KF 180.73 L3 Tech LLL 157.23 LabCpAm LH 16.65 LazardGlblFd LGI LeggMason 40.96 LM 5.88 LibertyAllStar USA 5.15 LibertyASGFd ASG 94.97 Lindsay LNN LionsGate B LGF/B 27.77 LiveNationEnt LYV 36.75 12.25 MGIC Investment MTG MadisonSquGarden MSG 211.98 48.90 MagnaIntl MGA Manpower MAN 119.59 20.23 ManulifeFin MFC 55.83 MarathonPetrol MPC Markel MKL 1005.83 128.84 Mastercard MA Meritor MTOR 18.40 MettlerToledo MTD 614.38 Mobileye MBLY 63.38 MolinaHealthcare MOH 72.50 Moody's MCO 127.65 MSNonCum pfd A MSpA 24.50 24.16 NRG Energy NRG NRG Yield C NYLD 18.70 NRG Yield A NYLD/A 18.10 18.15 NYTimes A NYT 43.36 OilDriAmerica ODC 13.20 PGT Innovations PGTI 16.70 PIMCOCorp&Incm PTY 22.72 PIMCODynamicCred PCI PIMCO IncmStrFdII PFN 10.74 44.97 PJT Partners PJT 73.51 POSCO PKX PVH PVH 116.19 167.12 ParkerHannifin PH 34.97 PembinaPipeline PBA PennyMacPfdB PMTpB 25.15 12.25 PIMCO IncStrFd PFL 99.16 PolarisIndustries PII 46.53 Progressive PGR PutnmHiInco PCF 8.93 79.91 RH RH 83.22 RaymondJames RJF Raytheon RTN 169.43 Realogy RLGY 34.21 87.50 RegalBeloit RBC ReinsuranceGrp RGA 133.83 RexfordIndlRealty REXR 28.47 Rockwell ROK 167.97 52.23 RogersComm B RCI Rogers ROG 118.33 RoyalCaribbean RCL 116.36 9.84 RoyceGlbValueTr RGT 8.94 RoyceMicroCap RMT RoyceValue 15.11 RVT S&P Global SPGI 151.63 SCE Tr VI 5% Pfd L SCEpL 25.49 SPX SPXC 29.25 SafetyIncome SAFE 19.78 SantndrFinPfd4 SANpA 26.69 ScorpioBulkNt19 SLTB 24.78 16.73 SelectMedical SEM 45.87 ShinhanFin SHG 38.40 SOQUIMICH SQM 14.07 SolarisOilfield SOI 40.75 Sony SNE 39.88 SourceCap SOR StanleyBlackDck SWK 148.32 Strats PG GJR GJR 21.85 Stryker SYK 147.78 TAL Education TAL 151.03 83.36 TE Connectivity TEL 36.06 Telus TU 30.43 Ternium TX 213.40 Teleflex TFX 21.36 TempltnDrgn TDF

0.9 -1.5 0.9 0.1 2.2 0.5 -0.2 -0.9 0.4 1.0 0.6 2.5 0.2 1.0 0.5 1.7 0.5 -0.1 3.3 0.7 0.1 0.2 -0.7 ...

3.3 0.1 ...

-0.7 2.2 0.9 0.5 ...

-0.3 1.7 0.3 -0.8 0.3 ...

1.4 0.5 ...

0.5 0.3 0.4 1.7 1.7 0.8 -0.4 -0.4 0.8 0.5 2.5 1.5 -0.5 0.9 0.2 0.6 4.3 1.8 ...

-0.9 ...

-0.1 0.5 0.2 0.5 -1.9 -0.3 1.5 0.3 2.4 0.5 -0.3 0.3 0.6 0.3 1.9 1.3 -0.4 0.4 ...

0.8 1.2 -8.3 0.2 -0.4 -0.8 0.9 0.8 -0.9 -0.6 0.8 0.5 0.3 0.1

52-Wk % Sym Hi/Lo Chg

TemplMktFd EMF Terex TEX ThermoFisherSci TMO TransCanada TRP Tri-Continental TY TriplePointNts22 TPVY TritonIntl TRTN TsakosEnergyPfdC TNPpC TylerTech TYL UBS Group UBS Unitil UTL Unilever UN Unilever UL UnitedMicro UMC UnitedHealth UNH Visa V VersumMaterials VSM Viad VVI Visteon VC VoyaAsiaPacHiDiv IAE VoyaEM HiIncm IHD VoyaGlbAdvantage IGA VoyaGlbEquityDiv IGD WABCO WBC WGLHoldings WGL WasteMgt WM XL Group XL Xylem XYL

16.02 39.57 182.77 51.51 24.85 25.44 35.17 26.29 179.44 17.89 50.50 58.14 57.07 2.51 191.92 99.14 35.56 49.55 110.63 10.61 9.28 10.97 7.67 141.86 84.59 75.28 46.48 57.10

-0.2 -0.5 0.8 0.7 ...

0.6 0.7 0.8 ...

0.2 1.1 1.7 1.7 0.4 1.2 -0.1 1.1 0.9 1.2 -0.8 0.7 ...

-0.1 4.0 0.1 0.1 0.4 -0.2

NYSE lows - 8 AutoZone BakerHughes GenuineParts IONGeophysical LejuHoldings MarineMax NoEuroOil StoneMorPtrs

AZO 491.13 1.8 BHGE 34.86 -4.3 80.86 -1.5 GPC 3.25 ...

IO 1.51 -5.6 LEJU 14.40 -24.6 HZO 5.94 -1.0 NRT 6.75 3.8 STON

NYSE Arca highs - 325 ALPSEmgDivDogs EDOG ALPS EqSecWgh EQL ALPSMedBreak SBIO ARKWebx.0ETF ARKW BarcETNFIEnhEur50 FEEU BarclaysETN FI Enh FLEU BarcETN+FIEnhGlHY FIGY S&PVEQTOR VQT Barrons400ETF BFOR BrandValueETF BVAL BuzzUSSentLdrs BUZ CSOPFTSEChinaA50 AFTY CambriaGlbMomentum GMOM CambriaGlbValue GVAL ClearSharesOCIO OCIO ColumbiaBeyBRICs BBRC ColumbiaEMCoreXCh XCEM ColumbiaSustGlb ESGW CS FI LC Grwth FLGE CurrShAUD FXA CurrShCAD FXC CurrShEuro FXE CurrShSEK FXS DeepValueETF DVP DeutscheXHarCSI300 ASHR DeutscheXAllChina CN DeutscheXMSCSKorea DBKO DiamondHillVal DHVW DirexAeroBl3 DFEN DirexCSI300CnABl2 CHAU DirexDevMktBl3 DZK DirexESTOXX50Bl3x EUXL DirexFTSEEurBull3x EURL DirexMexicoBl3 MEXX DirexMcBull3 MIDU DirexS&P500Bl3 SPXL DirexS&P500Bl1.25 LLSP DirexSCBull2 SMLL DirexScBl1.25 LLSC DirexSCBull3 TNA DirexKRBull3 KORU Direx iBillionaire IBLN DirexNasd100EW QQQE ETRACS2xLevxEn LMLP FIEnhancedEur50ETN FIEU FIEnhEurope50ETN FIEE FidelityMSCIHlthCr FHLC FidelityMSCIIT FTEC FidelityMomFactor FDMO FidelityQualFactor FQAL FidelityValFactor FVAL FT S&P500VixTail VIXH FT DJ Internet FDN EqCompassRiskMgr ERM

-0.08 0.47 -0.40 -0.19 -0.06 0.01 -0.10 -1.17 -0.17 0.66 -0.18 -1.17 -0.90 -0.02 0.19 -0.40 0.09 -0.25 -1.39 -0.77 -0.21 -0.21 0.83 -0.07 -2.59 -0.29 1.01 -0.71 0.31 0.21 -0.96 0.08 -0.51 0.33 -0.24 0.23 0.54 -0.04 -0.03 -0.08 0.18 -0.23 -2.03 -0.38 -0.14 -0.28 -0.52 0.58 -0.81 0.33 -0.65 -0.56 -0.48 -0.47 -0.82 -0.08 -0.60 0.06 0.38 0.38 -0.30 -0.19 0.35 -0.27 0.04 0.01 0.04 -0.30 -0.10 0.57 -0.05 0.71 0.27 0.07 ...

0.68 0.17 0.07 0.54 0.21 -0.56 0.01 -0.39 2.10 0.07 -1.00 -0.09 -0.12 -0.26 0.20 -0.06 0.03 -0.16 0.38 0.40 -0.58 0.05

Stock

The following explanations apply to the New York Stock Exchange, NYSE Arca, NYSE MKT and Nasdaq Stock Market stocks that hit a new 52-week intraday high or low in the latest session. % CHG-Daily percentage change from the previous trading session.

24.75 65.21 29.28 37.13 123.55 147.91 156.26 147.17 38.58 15.38 29.56 16.27 25.68 24.88 25.41 17.94 27.72 29.72 188.82 79.69 78.64 112.72 116.66 29.06 28.10 33.29 30.41 29.16 30.65 24.19 71.15 26.66 33.76 33.23 39.53 36.46 32.72 44.65 33.23 59.45 53.63 30.13 41.21 15.61 127.12 164.60 39.17 45.17 28.78 29.17 29.86 26.40 101.35 20.79

0.3 -0.1 0.8 0.5 1.6 1.1 0.6 0.1 -0.1 -0.1 1.1 0.1 0.5 0.2 0.1 -0.1 1.0 0.6 ... ...

0.1 1.0 0.8 ...

0.3 -0.1 0.5 0.1 -0.1 0.4 1.2 2.2 1.6 1.1 -0.4 0.1 0.3 1.7 0.3 0.2 1.3 0.5 0.2 -0.1 1.2 1.8 0.6 0.1 0.2 0.1 0.1 0.7 -0.3 0.2

s

s

s

Wall Street Journal stock tables reflect composite regular trading as of 4 p.m. and changes in the closing prices from 4 p.m. the previous day.

Net Sym Close Chg

Stock

t

s

s

s

s

s

s

s s s s

s s

Fluor FLR 45.16 FomentoEconMex FMX 103.18 FootLocker FL 47.98 FordMotor F 11.70 ForestCIty A FCE/A 24.94 Fortis FTS 35.51 Fortive FTV 63.50 FortBrandsHome FBHS 65.63 Franco-Nevada FNV 74.50 FranklinRscs BEN 46.81 Freeport-McMoRan FCX 13.04 FreseniusMed FMS 48.26 GGP GGP 23.63 Gallagher AJG 58.27 Gap GPS 23.51 Gartner IT 127.44 Gazit-Globe GZT 9.75 GeneralDynamics GD 202.40 GeneralElec GE 26.69 GeneralMills GIS 54.17 GeneralMotors GM 36.41 GenuineParts GPC 81.69 Gerdau GGB 3.42 Gildan GIL 30.35 GlaxoSmithKline GSK 42.77 GlobalPayments GPN 93.61 GoDaddy GDDY 43.18 Goldcorp GG 13.62 GoldmanSachs GS 222.30 Graco GGG 108.77 Grainger GWW 165.96 GreatPlainsEner GXP 30.22 GpoAeroportuar PAC 117.07 GpoAeroportSur ASR 228.06 GpoAvalAcciones AVAL 8.59 GpFinSantandMex BSMX 10.56 GrupoTelevisa TV 26.10 HCA Healthcare HCA 85.76 HCP HCP 31.74 HDFC Bank HDB 92.01 HP HPQ 18.94 HSBC HSBC 48.11 Halliburton HAL 45.38 Hanesbrands HBI 23.26 HarleyDavidson HOG 48.77 Harris HRS 114.23 HartfordFinl HIG 53.78 HealthcareAmer HTA 30.43 Heico HEI 76.91 Heico A HEI/A 65.95 Helmerich&Payne HP 57.26 Herbalife HLF 70.69 Hershey HSY 106.28 Hess HES 44.05 HewlettPackard HPE 17.90 Hilton HLT 62.01 HomeDepot HD 147.03 HondaMotor HMC 27.70 Honeywell HON 134.95 HormelFoods HRL 32.93 DR Horton DHI 36.33 HostHotels HST 18.05 HuanengPower HNP 28.39 Hubbell HUBB 117.15 Humana HUM 235.83 HuntingtonIngalls HII 199.19 Huntsman HUN 27.07 HyattHotels H 55.39 ICICI Bank IBN 9.27 ING Groep ING 18.05 Invesco IVZ 36.14 IDEX IEX 114.29 IllinoisToolWks ITW 147.12 Infosys INFY 15.52 Ingersoll-Rand IR 92.18 Ingredion INGR 121.76 ICE ICE 65.84 InterContinentl IHG 56.27 IBM IBM 147.66 IntlFlavors IFF 133.37 IntlPaper IP 56.92 Interpublic IPG 25.44 InvitationHomes INVH 21.65 IronMountain IRM 34.69 IsraelChemicals ICL 4.78 ItauUnibanco ITUB 11.69 JPMorganChase JPM 91.20 JacobsEngineering JEC 52.54 JamesHardie JHX 15.26 JanusHenderson JHG 33.52 J&J JNJ 136.57 JohnsonControls JCI 44.11 JonesLangLaSalle JLL 129.02 JuniperNetworks JNPR 29.22 KAR Auction KAR 41.54 KB Fin KB 51.59 KKR KKR 19.31 KT KT 17.38 KSCitySouthern KSU 104.07 Kellogg K 66.75 KeyCorp KEY 18.37 KeysightTechs KEYS 41.80 KilroyRealty KRC 73.20 KimberlyClark KMB 123.71 KimcoRealty KIM 19.04 KinderMorgan KMI 20.56 KinrossGold KGC 4.15 Kohl's KSS 39.99 KoninklijkePhil PHG 36.33 KoreaElcPwr KEP 19.81 Kroger KR 23.26 Kyocera KYO 56.71 LATAMAirlines LTM 12.09 L Brands LB 45.05 LG Display LPL 15.25 LINE LN 34.90 L3 Tech LLL 177.72 LabCpAm LH 156.12 LambWeston LW 44.28

52-Wk % Sym Hi/Lo Chg Stock

FT FinlsAlpDx FXO FT GlbEngg FLM FT HlthCareAlpha FXH FT IndlsAlpDx FXR FT NYSE ArcaBiotch FBT FT PfdSecs FPE FT TechAlphaDEX FXL FT USEquityOpp FPX FT Water FIW FlexShIntQualDiv IQDE FlexShIntlQualDiv IQDF FlexShEM FactTilt TLTE FlexMrnUSMktFtrTlt TILT FlexShQualDivDef QDEF FranklinLibEM FLQE GlbX ChinaFinls CHIX GlbX ChinaIndls CHII GlbX FTSEAndean40 AND GlbX GuruIndex GURU GlbXGuruIntlIndex GURI GlbXJPMEfficiente EFFE GlbX MSCIGreece GREK GlbX MSCINorway NORW GlbXMSCIPortugal PGAL GlbXSciBetaEurope SCID GlbXSciBetaJapan SCIJ GlbXSciBetaUS SCIU GlblXSuperDividend SDIV GSAccessInvGradeCorpBd GIGB GSActiveBetaEM GEM GSActiveBetaIntlEq GSIE GSActiveBetaUSLC GSLC GS Active US SC GSSC GSHedgeIndVIP GVIP GuggBull2019HY BSJJ GuggBull2021HY BSJL GuggChinaRE TAO GuggChinaSC HAO GuggFronMkts FRN GuggS&P500EW RSP GuggS&P500EWHlthcr RYH GuggS&P500EWTech RYT GuggS&P500PureGr RPG GuggInsider NFO GuggMSCIEMEq EWEM GuggGlbTimber CUT GuggMC Core CZA GuggMltiAstIncm CVY GuggS&P500Top50 XLG GuggS&PGlblWtr CGW GuggS&PSpinOff CSD HartfordMultiDvxUS RODM HartfordMultiUSEqu ROUS HealthCareSelSect XLV IQHedgeEventDriven QED IQ HedMultStra QAI IQLeadersGTAATrkr QGTA iPathCBOE S&P500BW BWV iPath MSCI India INP iShCoreDivGrowth DGRO iShMSCIIntlDev IDEV iShCoreS&P500ETF IVV iShCoreS&PMdCp IJH iShCoreS&PSmCpETF IJR iShS&PTotlUSStkMkt ITOT iShCoreS&PUSGrowth IUSG iShCurrHdgMSCIEM HEEM iShCurrHdgMSCISK HEWY iShU.S.Industrials IYJ iShUSAerospace&Def ITA iShUSHealthcarePrv IHF iShU.S.Technology IYW iShUSMedDevices IHI iShEdgeMSCIIntlMom IMTM iShEdgeMSCIIntVal IVLU iShEdgeMSCIMultif ACWF iShEdgeMSCIMultInt INTF iShEdgeMSCIMlIntSC ISCF iShEdgeMSCIMultUSA LRGF iShEdgeMSCIUSAMom MTUM iShEdgeMSCIUSAQual QUAL iShEmgMktDividend DVYE iShExponentialTech XT iShiBoxx$HYCpBd HYG iShIntRtHdgCorpBd LQDH iShJPM EM LC Bd LEMB iShACWILowCarbon CRBN iShMSCIAustriaCap EWO iShMSCICanadaETF EWC iShMSCIEmgMktSC EEMS iShMSCIItalyCapped EWI iShMSCIKLD400Soc DSI iShMSCIKokusaiETF TOK iShMSCINetherlands EWN iShMSCIPacificxJp EPP iShMSCIPolandCap EPOL iShMSCISouthKorea EWY iShMSCIUSAEqWeight EUSA iShMSCIWorldETF URTH iShMorningstarLC JKD iShMornLCGrowth JKE iShMorningstarMC JKG iShMornMCGrowth JKH iShMornSCGrowth JKK iShRussell1000Gwth IWF

29.21 55.71 68.69 36.39 119.04 20.17 46.09 60.96 44.04 24.92 26.06 55.86 103.84 40.97 31.53 16.51 15.10 9.20 27.58 15.36 26.03 10.79 12.56 11.85 27.43 29.90 29.22 21.96 50.25 33.02 28.38 49.07 40.82 49.75 24.73 25.28 26.83 27.31 14.16 94.46 178.08 131.51 97.85 57.22 33.32 29.41 61.49 21.35 175.41 33.60 49.14 27.82 28.10 81.21 21.07 29.77 23.85 75.09 81.51 31.76 54.99 249.10 177.71 71.72 56.71 49.88 25.05 30.46 134.48 164.44 150.75 147.69 169.71 28.94 24.77 28.16 27.16 29.10 29.40 92.44 75.99 41.68 33.06 88.85 95.89 47.88 110.71 22.36 27.96 48.47 29.30 91.63 61.48 30.45 46.22 25.61 71.01 51.90 82.27 149.15 145.27 172.55 187.27 165.66 122.60

...

-0.1 0.7 -0.5 1.3 0.1 0.1 0.1 0.4 0.1 0.1 0.2 0.1 0.2 -0.3 0.5 0.3 0.2 -0.3 1.9 0.2 -0.5 0.7 0.7 0.3 0.7 ...

-0.1 0.1 ...

0.3 ... ...

0.2 -0.1 ...

1.5 ...

0.7 -0.1 0.7 0.1 0.1 0.4 0.1 -0.5 -0.2 ...

0.1 0.4 0.3 0.4 0.5 0.7 0.4 -0.1 0.4 0.7 0.2 ...

0.4 ...

-0.1 0.1 ... ...

0.1 0.9 -0.4 -0.1 0.7 0.1 0.3 0.3 0.2 0.3 0.2 ...

0.1 -0.1 0.3 0.1 0.4 0.1 0.2 0.2 0.3 1.0 0.3 ...

0.5 0.1 0.8 1.0 -0.1 0.1 0.3 ...

0.3 0.1 0.2 -0.3 ...

0.3 0.1

-0.31 0.31 -0.56 0.02 -0.07 0.35 -0.47 -1.48 1.10 0.24 -0.07 -0.08 -0.05 0.58 0.22 -1.41 0.06 0.06 -0.25 0.32 -0.06 -1.27 -0.06 0.15 0.35 0.81 -0.82 0.09 -0.57 -0.83 3.77 0.30 0.44 2.00 -0.08 0.23 -0.07 0.53 -0.42 0.47 0.24 ...

-0.20 0.11 ...

-0.20 -0.11 -0.19 0.05 0.50 -0.86 -1.13 0.19 -0.89 0.23 -0.11 -6.27 -0.03 -1.20 0.31 -0.31 -0.56 -0.15 0.05 -0.40 0.70 0.04 -0.84 -0.03 0.22 -0.06 -0.13 -0.56 0.14 -1.02 1.06 0.12 -0.01 0.13 -1.86 -0.59 0.61 -0.03 -0.26 0.02 0.05 ...

-0.89 -0.15 ...

1.36 -0.04 0.58 -0.15 0.27 0.84 -0.13 0.09 0.50 0.40 -0.70 -0.14 -0.30 -0.24 -0.03 0.89 0.02 0.26 -0.17 0.62 0.32 -0.45 -0.16 0.47 -1.37 0.04 5.76 1.11 -0.10

Stock

s s

s s s s s

s

s

s

s

s

s s

s s

Net Sym Close Chg

LasVegasSands LVS 62.16 0.24 Lazard LAZ 47.02 -0.21 Lear LEA 148.36 -0.77 Leggett&Platt LEG 52.57 -0.02 Leidos LDOS 53.62 0.23 Lennar A LEN 53.26 -0.04 Lennar B LEN/B 44.95 -0.10 LennoxIntl LII 182.57 -1.86 LeucadiaNatl LUK 26.42 -0.15 Level3Comm LVLT 58.48 0.77 LibertyProperty LPT 41.53 -0.47 EliLilly LLY 84.75 0.52 LincolnNational LNC 70.72 -0.46 LionsGate A LGF/A 29.50 0.10 LionsGate B LGF/B 27.56 0.03 LiveNationEnt LYV 36.38 -0.01 LloydsBanking LYG 3.63 0.03 LockheedMartin LMT 289.67 -1.00 Loews L 47.80 -0.11 Lowe's LOW 72.56 -4.27 LyondellBasell LYB 87.02 -0.14 M&T Bank MTB 160.34 -2.14 MGM Resorts MGM 33.73 0.94 MPLX MPLX 36.13 -0.04 MSCI MSCI 107.40 -0.19 Macerich MAC 58.93 0.32 MacquarieInfr MIC 76.34 -0.03 Macy's M 23.07 0.08 MagellanMid MMP 70.02 -0.61 MagnaIntl MGA 48.81 0.43 Manpower MAN 119.05 0.63 ManulifeFin MFC 20.11 ...

MarathonOil MRO 12.10 -0.15 MarathonPetrol MPC 55.40 -0.15 Markel MKL 1005.83 16.42 Marsh&McLennan MMC 79.64 0.44 MartinMarietta MLM 224.78 0.83 Masco MAS 38.30 -0.72 Mastercard MA 128.47 0.43 McCormick MKC 92.48 0.41 McCormickVtg MKC/V 92.69 0.54 McDonalds MCD 154.21 0.32 McKesson MCK 165.07 0.22 Medtronic MDT 85.67 0.02 Merck MRK 62.94 0.32 MetLife MET 54.58 -0.37 MettlerToledo MTD 610.32 1.56 MidAmApt MAA 101.01 -0.29 MitsubishiUFJ MTU 6.41 0.03 MizuhoFin MFG 3.58 0.01 MobileTeleSys MBT 8.42 ...

Mobileye MBLY 63.36 0.02 MohawkIndustries MHK 242.58 -5.31 MolsonCoors B TAP 87.54 -0.99 Monsanto MON 117.01 -0.45 Moody's MCO 127.17 0.57 MorganStanley MS 46.51 -0.11 Mosaic MOS 24.43 -0.11 MotorolaSolutions MSI 89.96 0.18 NRG Energy NRG 24.11 0.11 NTTDoCoMo DCM 23.59 0.08 NVR NVR 2447.29 -35.44 NationalGrid NGG 62.79 0.49 NatlOilwell NOV 34.00 -1.15 NatlRetailProp NNN 40.27 0.13 NewOrientalEduc EDU 80.61 0.38 NY CmntyBcp NYCB 13.00 0.07 NewellBrands NWL 53.10 -0.66 NewfieldExpln NFX 26.80 -1.08 NewmontMining NEM 33.92 0.04 NextEraEnergy NEE 143.48 1.68 NielsenHoldings NLSN 38.91 0.32 Nike NKE 59.10 1.33 NiSource NI 25.82 0.17 NobleEnergy NBL 28.73 -0.98 Nokia NOK 6.26 0.04 NomuraHoldings NMR 5.96 0.06 Nordstrom JWN 47.10 0.16 NorfolkSouthern NSC 118.52 -2.15 NorthropGrumman NOC 264.77 -0.15 Novartis NVS 85.42 0.39 NovoNordisk NVO 43.55 0.98 Nucor NUE 59.92 -0.74 NuSTAREnergy NS 46.76 -0.62 OGE Energy OGE 35.20 0.21 ONEOK OKE 54.79 0.40 OccidentalPetrol OXY 60.52 -0.37 Och-Ziff OZM 3.08 0.01 OmegaHealthcare OHI 33.45 -0.12 Omnicom OMC 82.70 1.96 Oracle ORCL 51.13 0.13 Orange ORAN 16.82 0.22 OrbitalATK OA 102.40 0.01 Orix IX 78.92 0.58 OwensCorning OC 64.85 -0.85 PG&E PCG 67.64 0.54 PLDT PHI 33.52 0.18 PNC Fin PNC 126.95 0.55 POSCO PKX 72.95 1.78 PPG Ind PPG 106.72 -6.88 PPL PPL 38.24 0.12 PVH PVH 115.75 1.68 PackagingCpAm PKG 110.46 -1.82 PaloAltoNtwks PANW 139.51 -1.26 ParkHotels PK 26.48 -0.76 ParkerHannifin PH 165.96 -0.80 ParsleyEnergy PE 28.13 -1.00 Pearson PSO 8.31 0.01 PembinaPipeline PBA 34.81 0.32 Pentair PNR 65.13 -0.95 PepsiCo PEP 115.51 0.17 PerkinElmer PKI 69.46 0.07 Perrigo PRGO 75.51 2.86 PetroChina PTR 63.51 -0.17 PetroleoBrasil PBR 8.69 -0.05 PetroleoBrasilA PBR/A 8.35 -0.04 Pfizer PFE 33.54 -0.08 PhilipMorris PM 119.86 -1.76 Phillips66 PSX 82.36 -0.56

52-Wk % Sym Hi/Lo Chg Stock

iShRussell1000ETF IWB iShRussell2000Gwth IWO iShRussell2000ETF IWM iShRussell3000ETF IWV iShRussellMid-Cap IWR iShRussellTop200Gr IWY iShRussellTop200 IWL iShS&P100 OEF iShS&PMC400Growth IJK iShS&P500Growth IVW iShGlobalTechETF IXN iShGloblFinancials IXG iShIntlPfdStock IPFF iShNorthAmerTech IGM iShNATech-Software IGV iShDowJonesUS IYY iShRussellMCGrowth IWP JanusVelTailLC TRSK HancockLC JHML HancockTech JHMT JPMDivReturnEurope JPEU JPM DivRetGlEq JPGE JPM DivRetIntlEq JPIN JPM Div US MC JPME JPM Div US SC JPSE KnowldgLdrDevWrld KLDW KraneBoseraChinaA KBA MktVctDbLngEur URR MeidellTactical MATH OShFTSERussIntl ONTL PwrShAerospace PPA PwrShCleantch PZD PwrShDynBiot PBE PwrShDynMedia PBS PwrShDynLC Grwth PWB PwrShAPac xJapan PAF PwrShDevMkt xUS PXF PwrShFTSERAFIDevMk PDN PwrShS&PEM Mom EEMO PwrShS&PIntlDev IDHQ PwrShRussMC EW EQWM PwrShRuss1000EqWt EQAL PwrShRussTop200 EQWL PwrShRussTop200G PXLG PwrShRuss2000EW EQWS PwrShS&P500Down PHDG PwrShS&PIntDev IDLV PwrShWldrClean PBW ProShDJBrkGlIn TOLZ ProShS&P500xEner SPXE ProShShtVIXST SVXY ProShUlt Euro ULE ProShUltFTSEEurope UPV ProShXinhuaChina25 XPP ProShrUlHlthCr RXL ProShUltMSCIEAFE EFO ProShrUMdCp400 MVV ProShrUltraQQQ QLD ProShrUltraRus UWM ProShrUltraS&P SSO ProShrUlTech ROM ProShUltMC400 UMDD ProShUltRus2000 URTY ProShUltS&P500 UPRO PureFISEMobilePymt IPAY RivFrDynUSFlex RFFC SPDRBloomBarCvSecs CWB SPDRBloomBarEMLoBd EBND SPDRBloomBarInCpBd IBND SPDREUROSTOXXSC SMEZ SPDRGlobalDow DGT SPDRMFSSysCore SYE SPDRMSCIACWIIMI ACIM SPDRACWILowCarbon LOWC SPDRMSCIAUStrat QAUS SPDRMSCICAStrat QCAN SPDRMSTech MTK SPDRRussell1000ETF ONEK SPDRRussell2000ETF TWOK SPDRRussell3000ETF THRK SPDRRuss1000Mom ONEO SPDR S&P500MidGr MDYG SPDRS&P500Growth SPYG SPDR Aero & Dfns XAR SPDRS&PCapitalMkts KCE SPDREmMktsDiv EDIV SPDRS&P500Buyback SPYB SPDRS&P500Fossil SPYX SPDRS&PHlthCareEqp XHE SPDRS&PInsurance KIE SPDRS&P1000ETF SMD SPDRS&PTechHardwr XTH SPDRGenderDivers SHE SPDRSSgAGlbAll GAL SchwabFundEmgLrg FNDE SchwabFundIntLrgCo FNDF SchwabFundIntlSmCo FNDC SchwabIntEquity SCHF SchwabIntlSC SCHC SchwabUS BrdMkt SCHB SchwabUS LC SCHX SchwabUS LC Grw SCHG SchwabUS LC Val SCHV SchwabUS MC SCHM SchwabUS SC SCHA

137.66 173.10 143.52 146.65 195.15 66.59 56.64 109.41 200.83 141.41 138.34 64.79 18.41 153.56 143.51 124.06 110.20 29.83 32.19 37.51 58.87 58.88 57.42 60.09 27.71 31.24 31.72 20.89 30.90 27.35 47.76 40.12 47.64 28.97 37.40 57.54 42.95 32.12 19.21 23.03 44.74 29.15 48.96 41.57 40.78 25.91 33.03 4.57 43.82 51.99 90.23 16.77 53.52 68.91 83.89 118.96 108.18 63.50 62.85 93.51 72.99 95.37 69.65 110.94 31.34 30.51 51.12 29.66 34.12 59.31 79.05 69.80 73.48 84.76 53.32 57.89 76.94 116.07 84.94 184.94 70.83 146.41 122.14 73.84 50.66 31.35 56.89 60.15 62.99 90.28 94.26 75.91 68.09 36.35 28.11 28.82 33.66 32.66 34.57 59.88 59.09 65.13 51.02 49.30 65.40

...

0.1 0.1 ...

-0.1 0.1 0.2 0.1 -0.2 ...

0.2 0.3 0.1 0.2 ... ... ...

0.3 ...

0.2 0.4 0.2 0.3 0.1 0.3 0.2 0.4 2.2 0.9 0.5 -0.1 -0.1 0.5 0.6 ...

0.2 0.3 0.2 -0.2 1.1 0.9 -0.2 0.1 0.4 1.1 0.2 0.1 0.2 0.4 -0.3 1.0 1.9 1.6 -0.5 1.6 0.9 -0.3 0.3 0.2 0.1 -0.1 0.3 0.1 0.1 0.5 0.3 0.1 0.2 1.0 0.4 0.3 0.5 0.2 0.2 -0.1 1.0 0.1 -0.1 0.1 0.2 0.5 ... ...

-0.2 0.4 0.1 -0.5 0.1 0.2 0.3 0.4 1.2 0.1 0.2 -0.1 0.5 0.3 0.4 0.2 0.1 ... ...

0.2 -0.1 ...

Net Sym Close Chg

Stock

s

s

s s

s

s s

s

s

s

s s

s

s

s s s s

s

PinnacleFoods PF 61.39 PinnacleWest PNW 86.56 PioneerNatRscs PXD 163.28 PlainsAllAmPipe PAA 26.47 PlainsGP PAGP 27.03 PolarisIndustries PII 96.43 Potash POT 18.01 Praxair PX 135.21 PrincipalFin PFG 65.89 Procter&Gamble PG 88.60 Progressive PGR 46.48 Prologis PLD 59.17 PrudentialFin PRU 111.06 Prudential PUK 46.61 PublicServiceEnt PEG 44.47 PublicStorage PSA 207.53 PulteGroup PHM 24.29 QuestDiag DGX 109.65 QuintilesIMS Q 90.30 RELX RENX 20.76 RELX RELX 21.89 RPM RPM 54.59 RalphLauren RL 73.76 RangeResources RRC 21.64 RaymondJames RJF 82.73 Raytheon RTN 168.78 RealtyIncome O 57.32 RedHat RHT 98.92 RegencyCtrs REG 64.50 RegionsFin RF 14.31 ReinsuranceGrp RGA 133.30 RenaissanceRe RNR 143.10 RepublicServices RSG 64.78 ResMed RMD 78.03 RestaurantBrands QSR 61.54 ReynoldsAmer RAI 66.30 RioTinto RIO 44.54 RobertHalf RHI 48.66 Rockwell ROK 166.83 RockwellCollins COL 109.35 RogersComm B RCI 51.58 Rollins ROL 41.26 RoperTech ROP 234.85 RoyalBkCanada RY 75.64 RoyalBkScotland RBS 6.56 RoyalCaribbean RCL 115.26 RoyalDutchA RDS/A 54.34 RoyalDutchB RDS/B 55.45 SAP SAP 105.82 S&P Global SPGI 151.12 SINOPECShanghai SHI 56.44 SK Telecom SKM 26.15 SLGreenRealty SLG 101.14 Salesforce.com CRM 90.54 Sanofi SNY 48.06 Sasol SSL 29.13 Scana SCG 64.72 Schlumberger SLB 67.02 SchwabC SCHW 42.14 ScottsMiracleGro SMG 93.17 SealedAir SEE 45.53 SempraEnergy SRE 114.06 SensataTech ST 44.66 ServiceCorp SCI 34.06 ServiceNow NOW 109.84 ShawComm B SJR 22.12 SherwinWilliams SHW 350.78 ShinhanFin SHG 45.85 Shopify SHOP 90.87 SimonProperty SPG 161.01 SmithAO AOS 56.67 Smith&Nephew SNN 35.20 Smucker SJM 118.25 Snap SNAP 14.89 SnapOn SNA 150.34 SOQUIMICH SQM 38.38 Sony SNE 40.63 Southern SO 47.32 SoCopper SCCO 37.73 SouthwestAirlines LUV 60.40 SpectraEnerPtrs SEP 45.10 SpectrumBrands SPB 125.14 SpiritAeroSys SPR 60.80 Sprint S 8.38 Square SQ 26.39 StanleyBlackDck SWK 146.66 StarwoodProp STWD 21.98 StateStreet STT 90.87 Statoil STO 17.49 Steris STE 82.19 STMicroelec STM 16.53 Stryker SYK 147.40 SumitomoMits SMFG 7.61 SunCommunities SUI 89.75 SunLifeFinancial SLF 37.72 SuncorEnergy SU 30.79 SunTrustBanks STI 55.63 SynchronyFin SYF 29.53 Syngenta SYT 92.22 Sysco SYY 50.82 TAL Education TAL 146.59 TE Connectivity TEL 82.59 Telus TU 35.92 Ternium TX 30.13 TIM Part TSU 15.90 TJX TJX 69.60 TaiwanSemi TSM 36.10 TargaResources TRGP 46.39 Target TGT 54.58 TataMotors TTM 35.44 TechnipFMC FTI 28.42 TeckRscsB TECK 19.27 TelecomItalia TI 9.56 TelecomItalia A TI/A 7.59 Teleflex TFX 212.57 TelefonicaBras VIV 14.41 Telefonica TEF 10.90 TelekmIndonesia TLK 34.67 Tenaris TS 32.33 Teradyne TER 35.33

52-Wk % Sym Hi/Lo Chg Stock

SerenityShImpact ICAN SPDR MSCI exUS CWI SPDR S&P IntMtrls IRV SPDR S&P IntTech IPK SPDR S&PMdCpTr MDY SPDR S&P 500 SPY SPDR IntlSC GWX SPDR S&P exUS GWL Whiskey&SpiritsETF WSKY UBS FIEnhGlbHY FIHD UBS FIEnhLCGrw FBGX VanEckAfrica AFK VanEckAgribus MOO VanEckCSI300 PEK VanEckEnvironSvcs EVX VanEckGreenBd GRNB VanEckIntlHYBd IHY VanEckInvtGrFR FLTR VanEckMornIntlMoat MOTI VanEckMornWideMoat MOAT VanEckOilRefin CRAK VanEckPoland PLND VangdExtMkt VXF VangdInfoTech VGT VangdSC Grwth VBK VangdAWxUSSC VSS VangdFTSEDevMk VEA VangdFTSE Pac VPL VangdFTSEAWxUS VEU VangdGrowth VUG VangdLC VV VangdMegaCap MGC VangdMegaGrwth MGK VangdMC VO VangdMCGrowth VOT VangdMC Val VOE VangdS&P500 VOO VangdS&P500 Grw VOOG VangdS&PMC400 IVOO VangdS&P400Grwth IVOG VangdS&P600 VIOO VangdSC VB VangdTotalStk VTI VangdTotlWrld VT WBITacticalLCS WBIL WBITacticalLCV WBIF WBITacticalLCY WBIG WilshireMicroCap WMCR WisdTrEMxSOE XSOE WisdTrEM HiDiv DEM WisdTrEM SC DGS WisdTrGlbXMexico XMX WisdTrGlbxUSQual DNL WisdTrIntlMC Div DIM WisdTrIntlSC DLS WisdTrJpnHdgQuDiv JHDG WisdTrUSEarn500 EPS WisdTrUSMCDivFd DON WisdTrUSMCEarn EZM WisdTrUSTotalEarn EXT YieldShHiIncome YYY

26.48 36.80 23.45 44.70 324.43 247.42 34.19 29.94 29.32 154.50 188.02 22.81 56.69 43.95 81.26 27.06 25.34 25.42 34.60 39.97 24.36 19.48 104.54 148.86 149.39 111.39 42.48 67.40 51.69 131.16 113.60 84.76 103.44 145.85 120.43 105.14 227.25 126.79 120.00 124.26 130.65 138.66 127.28 69.35 25.74 26.95 23.39 31.97 28.53 42.85 47.78 27.62 55.18 65.47 71.53 26.36 85.20 99.34 36.62 87.59 19.89

0.2 0.2 -0.3 1.0 -0.1 ...

0.2 0.4 0.2 1.0 0.2 ...

0.1 0.3 1.2 0.4 0.5 ...

0.3 0.3 1.1 0.3 ...

0.1 -0.2 0.2 0.3 0.3 0.3 ...

0.1 0.1 ...

-0.1 -0.1 -0.1 ... ... ... ...

0.1 ...

0.1 0.2 0.3 0.5 0.2 0.4 -0.1 -0.2 0.4 0.3 0.4 0.2 0.3 1.0 0.2 -0.1 0.1 0.4 ...

0.11 0.55 -0.66 -0.16 0.28 3.98 0.04 -0.41 -0.81 0.25 0.81 -0.95 -0.24 0.23 0.26 -0.24 -0.17 -0.28 -0.66 0.19 0.15 -1.06 0.79 -0.94 -0.04 -0.20 0.16 -0.33 0.02 -0.16 0.69 1.31 0.05 -0.03 ...

0.56 -0.82 0.21 -0.51 -1.29 0.77 -0.12 -1.21 0.26 -0.03 2.70 0.29 0.35 0.28 0.93 -0.47 0.11 -3.77 0.98 1.25 -0.18 0.42 -0.42 -0.03 -0.66 -0.49 1.12 -0.36 -0.10 -0.28 -0.01 -8.94 0.35 -1.03 0.74 -0.91 0.09 1.49 -0.08 -7.37 0.46 0.07 0.09 -0.24 -1.01 -0.49 0.69 -0.19 -0.03 0.03 -1.14 -0.01 0.26 0.11 0.21 0.28 1.18 -0.05 0.24 0.15 0.18 -0.25 0.02 -0.14 -0.18 -1.29 -0.52 0.29 0.16 -0.07 -0.70 -0.31 -0.26 0.48 -0.46 -0.26 -0.14 -0.12 -0.13 0.68 0.14 0.16 -0.01 -0.57 0.52

Stock

s

s

s s

s s s

s

s

s

s

s

Tesoro TSO 97.54 TesoroLogistics TLLP 52.54 TevaPharm TEVA 32.43 Textron TXT 48.63 ThermoFisherSci TMO 181.55 ThomsonReuters TRI 45.88 3M MMM 212.45 Tiffany TIF 92.63 TimeWarner TWX 99.42 Toll Bros TOL 39.25 Torchmark TMK 78.24 Toro TTC 71.37 TorontoDomBk TD 52.03 Total TOT 50.35 TotalSystem TSS 61.41 ToyotaMotor TM 109.84 TransCanada TRP 51.33 TransDigm TDG 283.86 TransUnion TRU 45.02 Travelers TRV 124.57 TurkcellIletism TKC 8.67 TurquoiseHill TRQ 2.87 Twitter TWTR 20.53 TylerTech TYL 177.56 TysonFoods TSN 60.93 UBS Group UBS 17.80 UDR UDR 39.27 UGI UGI 50.15 US Foods USFD 27.84 UltraparPart UGP 23.93 UnderArmour A UAA 20.64 UnderArmour C UA 19.05 Unilever UN 57.86 Unilever UL 56.86 UnionPacific UNP 106.14 UnitedContinental UAL 72.08 UnitedMicro UMC 2.51 UPS B UPS 112.58 UnitedRentals URI 122.54 US Bancorp USB 52.48 US Steel X 24.15 UnitedTech UTX 122.45 UnitedHealth UNH 191.50 UniversalHealthB UHS 125.00 UnumGroup UNM 47.74 VEREIT VER 8.43 VF VFC 57.71 Visa V 98.11 VailResorts MTN 206.11 Vale VALE 9.13 ValeantPharm VRX 17.60 ValeroEnergy VLO 67.52 Vantiv VNTV 63.94 VarianMed VAR 104.35 Vedanta VEDL 16.88 VeevaSystems VEEV 63.29 Ventas VTR 68.40 Verizon VZ 44.22 Vipshop VIPS 11.94 VistraEnergy VST 16.20 VMware VMW 92.54 VornadoRealty VNO 79.20 VoyaFinancial VOYA 37.54 VulcanMaterials VMC 125.30 WABCO WBC 136.21 WEC Energy WEC 62.79 W.P.Carey WPC 67.99 Wabtec WAB 88.27 Wal-Mart WMT 76.02 WasteConnections WCN 64.09 WasteMgt WM 75.00 Waters WAT 184.11 Wayfair W 76.75 WellCareHealth WCG 183.77 WellsFargo WFC 54.88 Welltower HCN 73.70 WestPharmSvcs WST 93.48 WestarEnergy WR 49.53 WesternGasEquity WGP 41.53 WesternGasPtrs WES 53.20 WesternUnion WU 19.08 WestlakeChem WLK 70.03 WestpacBanking WBK 25.97 WestRock WRK 58.91 Weyerhaeuser WY 34.00 WheatonPrecMetals WPM 20.00 Whirlpool WHR 189.74 Williams WMB 31.43 WilliamsPartners WPZ 41.19 Wipro WIT 5.75 WooriBank WF 50.36 Workday WDAY 103.13 Wyndham WYN 102.64 XPO Logistics XPO 60.50 XcelEnergy XEL 47.13 Xerox XRX 29.41 Xylem XYL 56.93 YPF YPF 21.17 YumBrands YUM 74.62 YumChina YUMC 37.48 ZTO Express ZTO 15.68 ZayoGroup ZAYO 32.08 ZimmerBiomet ZBH 129.47 Zoetis ZTS 62.75

52-Wk % Sym Hi/Lo Chg Stock

DirexDevMktBear3 DPK DirexMcBear3 MIDZ DirexS&P500Br3 SPXS DirexS&PBiotechBr3 LABD DirexS&P500Br1 SPDN DirexScBear3 TZA DirexTechBear3 TECS ETRACSUBSBloomberg UCIB ProShShortEuro EUFX ProShShortHY SJB ProShShMSCI EAFE EFZ ProShShtMC400 MYY ProShShortQQQ PSQ ProShShtRus2000 RWM ProShShrtS&P500 SH ProShShrtSC600 SBB ProShShtRus2000 SRTY ProShUltProShS&P SPXU ProShUltShEuro EUO ProShrUltShFTSEEur EPV ProShrUS MSCI EAFE EFU ProShUltMC400 MZZ ProShUltShtQQQ QID ProShrUlShtRus TWM ProShUltShtS&P500 SDS ProShrUSTech REW

14.78 16.87 38.55 5.93 33.25 15.26 9.87 10.10 40.95 23.29 27.00 12.04 38.51 45.28 32.75 37.10 40.37 14.62 22.19 34.60 25.79 21.74 15.80 20.13 48.46 20.56

-1.1 ...

-0.1 -4.4 0.1 -0.1 -0.6 19.9 -1.0 -0.1 -0.3 -0.1 -0.1 -0.1 ...

-0.6 -0.1 ...

-2.0 -1.0 -2.1 -0.1 -0.2 -0.1 -0.1 ...

NYSE MKT highs - 4 AberdChileFd CCA Industries ConTomka TrilogyMetals

CH CAW CTO TMQ

7.41 3.81 58.28 0.94

-1.2 2.8 1.3 1.7

NYSE MKT lows - 5 Banro CRH Medical ImmunoCellular SachemCapital TakungArt

BAA CRHM IMUC SACH TKAT

-0.21 -0.56 0.51 -0.04 1.40 -0.03 0.35 0.77 0.27 -0.24 0.03 0.01 0.22 0.22 -0.29 0.14 0.34 -2.58 -0.29 -1.89 -0.03 -0.01 0.41 0.04 -0.20 0.03 0.15 0.53 -0.16 0.44 0.15 0.14 0.98 0.95 -1.70 -2.16 0.01 -0.41 3.84 0.40 -0.32 -0.63 2.31 1.32 -0.40 -0.05 1.16 -0.14 0.09 -0.29 0.35 -0.51 0.47 -1.07 -0.30 -0.45 -0.13 0.77 0.01 0.24 0.28 -1.36 0.08 -0.17 5.21 0.09 -0.24 -1.93 0.15 -0.32 0.08 1.20 0.93 1.49 -0.06 -0.43 -0.56 0.12 -1.35 -3.45 -0.10 -0.47 0.39 -0.59 0.18 0.44 -8.60 0.18 -0.08 0.31 -0.31 0.43 0.15 -0.01 0.51 0.03 -0.14 0.07 0.47 0.43 0.12 0.29 -1.60 0.33

NASDAQ AGNC Invt AGNC 21.00 Ansys ANSS 126.01 s ASML ASML 153.82 Abiomed ABMD 144.30 ActivisionBliz ATVI 61.08 s AdobeSystems ADBE 149.94 AkamaiTech AKAM 52.36 AlexionPharm ALXN 129.81 s AlignTech ALGN 160.17 Alkermes ALKS 57.53 AlnylamPharm ALNY 80.51 Alphabet A GOOGL 992.19 Alphabet C GOOG 968.15

0.56 3.15 0.33 3.72 3.49

-5.1 -3.0 9.0 -3.6 -7.2

Nasdaq highs - 190

ACI Worldwide ACIW 24.17 ASML ASML 154.35 AbeonaTherap ABEO 10.26 AdobeSystems ADBE 150.10 Adtran ADTN 23.85 AkceaTherap AKCA 12.80 AlignTech ALGN 160.54 Amazon.com AMZN1034.97 AmericanWoodmark AMWD 107.30 AmplifyOnlineRet IBUY 36.93 AmtechSystems ASYS 9.45 AppFolio APPF 36.53 AppliedOptoelec AAOI 95.67 ArrowInvDWATact DWAT 11.15 BGC Partners BGCP 13.35 BancFirst BANF 105.65 Baozun BZUN 31.05 BeiGene BGNE 79.25 3.15 BioDeliverySci BDSI BiondvaxPharmWt BVXVW 4.39 8.43 -0.1 BiondvaxPharm BVXV 10.72 9.84 23.46 -0.8 BisonCapAcqn BCAC 35.03 -0.2 BlackhawkNtwk HAWK 46.70

NYSE Arca lows - 29 AdvShRangerEqBear HDGE DirexAuspiceBroad COM DirexCSI300CnA CHAD

Net Sym Close Chg

0.7 2.1 -1.0 0.7 8.2 11.7 0.6 0.2 2.1 -0.7 -1.8 2.4 -4.0 0.5 0.8 5.7 1.3 0.8 5.0 2.3 -1.4 0.5 6.1

-0.07 -0.17 3.19 -0.25 -0.25 1.02 0.26 2.51 0.89 -0.09 2.05 -0.58 -2.74

Stock

Net Sym Close Chg

Altaba AABA 58.45 s Amazon.com AMZN 1028.70 Amdocs DOX 65.47 Amerco UHAL 369.60 AmericanAirlines AAL 52.34 Amgen AMGN 179.32 AnalogDevices ADI 80.85 Apple AAPL 150.34 AppliedMaterials AMAT 47.25 ArchCapital ACGL 97.99 AthenaHealth ATHN 143.80 Atlassian TEAM 35.98 Autodesk ADSK 109.91 ADP ADP 103.34 BOK Fin BOKF 85.20 Baidu BIDU 191.32 BankofOzarks OZRK 47.67 Biogen BIIB 281.44 BioMarinPharm BMRN 87.74 Bioverativ BIVV 62.78 Broadcom AVGO 253.43 CA CA 34.64 CBOE Holdings CBOE 93.15 CDK Global CDK 65.15 CDW CDW 63.67 t CH Robinson CHRW 65.01 CME Group CME 120.56 CSX CSX 50.87 CadenceDesign CDNS 35.09 Carlyle CG 20.40 s Celgene CELG 136.31 Cerner CERN 65.46 CharterComms CHTR 345.30 CheckPointSftw CHKP 107.41 s ChinaLodging HTHT 93.04 CincinnatiFin CINF 74.06 Cintas CTAS 126.78 CiscoSystems CSCO 31.86 CitrixSystems CTXS 82.58 Cognex CGNX 90.31 s CognizantTech CTSH 69.96 Coherent COHR 270.68 Comcast A CMCSA 39.49 CommerceBcshrs CBSH 57.84 CommScope COMM 35.26 Copart CPRT 31.51 CoStarGroup CSGP 277.86 Costco COST 150.99 Ctrip.com CTRP 57.36 DISH Network DISH 65.09 DentsplySirona XRAY 63.03 DexCom DXCM 70.01 DiamondbackEner FANG 92.38 DiscoveryComm A DISCA 26.60 DiscoveryComm C DISCK 25.71 DollarTree DLTR 70.77 E*TRADE ETFC 39.60 EastWestBancorp EWBC 57.41 s eBay EBAY 37.18 EchoStar SATS 61.08 ElectronicArts EA 111.97 Equinix EQIX 441.21 Ericsson ERIC 6.29 ErieIndemnity A ERIE 124.62 Exelixis EXEL 26.99 Expedia EXPE 154.63 s ExpeditorsIntl EXPD 59.05 ExpressScripts ESRX 62.64 F5Networks FFIV 127.24 Facebook FB 164.53 Fastenal FAST 43.07 FifthThirdBncp FITB 25.49 Fiserv FISV 126.23 Flex FLEX 16.81 Fortinet FTNT 40.71 Gaming&Leisure GLPI 37.54 Garmin GRMN 51.33 GileadSciences GILD 73.42 Goodyear GT 35.92 Grifols GRFS 20.92 HD Supply HDS 31.91 s Hasbro HAS 114.90 HenrySchein HSIC 184.44 Hologic HOLX 45.41 JBHunt JBHT 91.53 HuntingtonBcshs HBAN 13.56 IAC/InterActive IAC 106.11 IdexxLab IDXX 167.29 IHSMarkit INFO 45.29 IPG Photonics IPGP 151.44 IcahnEnterprises IEP 53.00 Illumina ILMN 171.97 Incyte INCY 133.79 Intel INTC 34.75 InteractiveBrkrs IBKR 37.53 Intuit INTU 135.35 s IntuitiveSurgical ISRG 971.73 IonisPharma IONS 55.86 JD.com JD 42.92 s JackHenry JKHY 106.45 JazzPharma JAZZ 159.85 JetBlue JBLU 23.33 KLA Tencor KLAC 101.70 s KitePharma KITE 109.89 KraftHeinz KHC 85.90 LKQ LKQ 33.42 LamResearch LRCX 164.80 LamarAdvertising LAMR 71.49 LibertyBroadbandA LBRDA 88.63 LibertyBroadbandC LBRDK 90.03 LibertyGlobal A LBTYA 33.03 LibertyGlobal B LBTYB 35.00 LibertyGlobal C LBTYK 31.92 LibertyLiLAC A LILA 25.30 LibertyLiLAC C LILAK 25.41 LibertyQVC B QVCB 24.35 LibertyQVC A QVCA 24.26 LibertyVenturesA LVNTA 55.02 LibertyFormOne A FWONA 32.88

52-Wk % Sym Hi/Lo Chg Stock

CalamosConvOp CHI CalamosDynConv CCD CalamsGlblDynInc CHW Celgene CELG CenturyAluminum CENX ChinaLodging HTHT ClearBr AC Grw CACG Coca-Cola Bottl COKE CognizantTech CTSH DBVTechnologies DBVT Datawatch DWCH DavisUSEquity DUSA DavisWorldwide DWLD Deswell DSWL eBay EBAY ExpeditorsIntl EXPD FedStreetAcqnUn FSACU FidelityNasdComp ONEQ FT BICK BICK FT CA MuniHi FCAL FT ChinaAlphaDEX FCA FT CloudComp SKYY FT DevMkts FDT FT DorseyDyn5 FVC FT DorseyFoc5 FV FT DorseyIntl5 IFV FT EM Alphadex FEM FT EuropeAlpha FEP FTEurozoneAlpha FEUZ FT GerAlpha FGM FT Intl IPO FPXI FT JapanAlpha FJP FT LC CoreAlpha FEX FT LC GrwthAlpha FTC FT LC Value FTA FT MegaCap FMK FT MC CoreAlpha FNX FT MC GrwthAlpha FNY FT MCGrAlpDX FAD FT NasdCleanEdge QCLN FT NasdGlblAuto CARZ FT Nasd100xTech QQXT FT Nasd100 EW QQEW FTRisingDivAch RDVY FT RiverFrDynAP RFAP FT RiverFrDynDev RFDI FT RiverFrDynEM RFEM FT RiverFrDynEur RFEU FT SC CoreAlpha FYX FT SC GrwthAlpha FYC FT SKoreaAlpha FKO FT TacticalHY HYLS FT TotalUSMkt TUSA Freshpet FRPT FullHouse FLL GeneralComm A GNCMA Gentherm THRM GlbXConsciousCos KRMA GlbXFinTech FINX GlbXMillThematic MILN GlbXNASDAQChinaTch QQQC GlbX Robotics&AI BOTZ Hasbro HAS HealthInsInnov HIIQ HorizNasd100 QYLD IXYS IXYS Icon ICLR

11.53 20.84 8.80 137.45 18.43 95.20 26.08 242.73 70.30 44.95 10.80 21.63 23.48 2.49 37.48 59.34 10.22 252.04 27.78 50.30 25.75 41.52 57.42 23.85 25.62 20.70 25.39 36.20 40.78 44.90 33.13 53.77 54.38 56.45 51.08 30.76 60.62 35.58 59.99 19.22 38.10 47.29 55.33 27.76 57.86 61.98 66.26 63.33 56.86 39.45 27.76 49.76 30.55 18.25 2.74 39.58 40.80 17.80 19.58 18.12 26.95 19.45 115.00 28.44 24.13 17.65 101.40

0.7 0.8 0.1 1.0 3.7 -1.4 0.2 2.3 0.7 2.2 13.2 0.1 -0.1 2.1 0.3 -0.1 0.8 0.2 0.7 0.3 0.7 0.2 0.2 -0.2 -0.1 0.1 0.4 0.2 0.3 0.2 0.5 0.2 ...

-0.1 0.1 0.2 0.1 0.1 -0.1 0.3 0.3 0.3 0.2 ...

0.2 ...

0.3 0.1 0.1 0.2 0.5 0.1 0.1 0.6 7.7 0.2 1.0 0.2 0.3 -0.4 0.8 0.6 0.8 -0.5 0.1 1.7 -0.4

0.09 1.83 0.28 4.65 -0.27 0.14 0.48 -0.68 0.07 0.54 0.42 -0.28 -0.34 0.59 0.05 0.41 -0.11 -0.51 0.51 1.75 -0.97 0.05 0.24 0.45 -0.39 -3.68 0.39 -1.00 -0.23 -0.20 1.31 -0.11 -1.31 -8.31 -1.29 0.75 0.70 -0.04 -0.20 0.21 0.46 3.94 0.15 0.10 0.07 0.10 -0.92 -0.25 -0.59 ...

-1.58 0.01 -1.55 -0.58 -0.50 0.42 -0.07 0.10 0.10 0.06 0.39 0.71 0.15 0.38 0.24 -0.84 -0.05 0.59 -0.40 0.39 0.39 -0.31 0.47 -0.13 -0.39 -0.14 -0.33 0.70 0.16 0.19 0.65 0.86 -0.76 0.13 -0.17 -0.14 -2.66 -0.49 -0.10 0.36 0.59 -1.91 3.34 0.19 0.32 0.16 4.94 1.44 -0.30 0.30 3.71 ...

0.31 4.46 0.21 0.03 0.57 0.48 0.26 0.44 0.47 3.70 0.41 -0.09 -0.05 -0.03 -0.12 -0.11 0.20

Net Sym Close Chg

Stock

LibertyFormOne C FWONK 33.79 s LibertyBraves A BATRA 25.37 s LibertyBraves C BATRK 25.18 LibertySirius A LSXMA 42.46 LibertySirius C LSXMK 42.27 LincolnElectric LECO 93.39 LogitechIntl LOGI 38.72 LogMeIn LOGM 112.45 lululemon LULU 61.11 MarketAxess MKTX 194.68 Marriott MAR 102.40 MarvellTech MRVL 16.48 Mattel MAT 21.31 MaximIntProducts MXIM 47.84 MelcoResorts MLCO 21.46 MercadoLibre MELI 282.08 MicrochipTech MCHP 83.04 MicronTech MU 32.00 Microsemi MSCC 53.21 s Microsoft MSFT 74.22 Middleby MIDD 129.70 Momo MOMO 42.33 Mondelez MDLZ 43.81 MonsterBeverage MNST 52.37 Mylan MYL 39.49 NXP Semi NXPI 109.71 Nasdaq NDAQ 72.02 s NetApp NTAP 44.60 Netease NTES 308.65 Netflix NFLX 183.60 NewsCorp A NWSA 13.96 NewsCorp B NWS 14.35 Nordson NDSN 123.84 NorthernTrust NTRS 87.50 NorwegianCruise NCLH 55.05 NVIDIA NVDA 167.50 OReillyAuto ORLY 188.69 OldDomFreight ODFL 97.14 ON Semi ON 15.72 OpenText OTEX 33.08 PTC PTC 54.10 Paccar PCAR 68.55 PacWestBancorp PACW 48.73 Paychex PAYX 57.19 s PayPal PYPL 59.09 People'sUtdFin PBCT 17.64 PilgrimPride PPC 22.45 s Priceline PCLN 1999.22 Qiagen QGEN 34.55 Qorvo QRVO 68.72 Qualcomm QCOM 53.97 RandgoldRscs GOLD 90.58 RegenPharm REGN 521.13 RossStores ROST 54.65 Ryanair RYAAY 112.92 SBA Comm SBAC 135.81 s SEI Investments SEIC 56.00 Sina SINA 92.65 SS&C Tech SSNC 39.73 SVB Fin SIVB 179.96 Sabre SABR 22.28 ScrippsNetworks SNI 79.01 Seagate STX 39.42 SeattleGenetics SGEN 54.14 t Shire SHPG 160.22 SignatureBank SBNY 134.07 SiriusXM SIRI 5.47 Skyworks SWKS 107.64 Splunk SPLK 61.56 Staples SPLS 10.10 Starbucks SBUX 58.03 SteelDynamics STLD 37.69 Stericycle SRCL 76.65 Symantec SYMC 31.17 Synopsys SNPS 75.82 TD Ameritrade AMTD 46.66 TESARO TSRO 129.02 T-MobileUS TMUS 61.12 s TRowePrice TROW 81.08 TakeTwoSoftware TTWO 78.03 Tesla TSLA 329.92 TexasInstruments TXN 82.69 TractorSupply TSCO 52.03 Trimble TRMB 37.55 TripAdvisor TRIP 37.89 trivago TRVG 23.21 21stCenturyFoxA FOXA 27.79 21stCenturyFoxB FOX 27.61 UltaBeauty ULTA 255.74 UltimateSoftware ULTI 224.62 UnitedTherap UTHR 131.36 UniversalDisplay OLED 123.35 VCA WOOF 92.44 VEON VEON 4.01 s VeriSign VRSN 98.84 VeriskAnalytics VRSK 86.27 VertxPharm VRTX 159.33 Viacom A VIA 40.80 Viacom B VIAB 35.89 Vodafone VOD 29.56 WPP WPPGY 103.31 WalgreensBoots WBA 79.80 Weibo WB 73.55 s WesternDigital WDC 95.01 WholeFoods WFM 41.76 WillisTwrsWatson WLTW 147.34 WynnResorts WYNN 132.00 Xilinx XLNX 65.81 Yandex YNDX 31.36 Zillow A ZG 44.75 Zillow C Z 44.56 ZionsBancorp ZION 43.84

NYSE MKT BritishAmTob BTI CheniereEnergy LNG CheniereEnerPtrs CQP CheniereEnHldgs CQH ImperialOil IMO

52-Wk % Sym Hi/Lo Chg Stock

IntegraLifeSci IART 56.26 IntlMultiAssetDiv YDIV 18.61 IntuitiveSurgical ISRG 974.66 60.12 iShAsia50ETF AIA iShCoreMSCITotInt IXUS 59.32 iShESG1-5YCpBd SUSB 25.14 iShMSCIACWIETF ACWI 67.28 iShMSCIACWIexUSETF ACWX 47.12 59.42 iShMSCIEAFESC SCZ iShMSCIEMESGOpt ESGE 67.76 iShMSCIEmMkAsia EEMA 67.99 53.78 iShMSCIEuropeSmCp IEUS 324.61 iShNasdaqBiotech IBB iShS&P EM Infra EMIF 34.04 75.60 Itron ITRI JackHenry JKHY 106.98 JanusSCGrwAlpha JSML 34.14 K2MGroup KTWO 25.18 KaiserAlum KALU 98.64 KitePharma KITE 110.08 LPL Financial LPLA 44.76 LeggMasonDev DDBI 28.61 31.37 LeggMasonEMDivCore EDBI LeggMasonSCQualVal SQLV 25.51 LeggMasonUSDivCore UDBI 29.95 LibertyExpediaA LEXEA 56.48 LibertyBraves A BATRA 25.73 LibertyBraves C BATRK 25.53 LoralSpace LORL 44.45 Macom Tech MTSI 63.46 MGPIngredients MGPI 58.99 MeritMedical MMSI 40.00 Microsoft MSFT 74.30 MitekSystems MITK 10.35 MonolithicPower MPWR 105.14 MYndAnalyticsWt MYNDW 1.00 NationalBeverage FIZZ 110.64 NatlInstruments NATI 42.87 NatlResearch A NRCIA 28.90 NetApp NTAP 44.69 59.70 Nutrisystem NTRI Nuvasive NUVA 81.18 Orbcomm ORBC 11.71 OakValleyBncp OVLY 15.45 OfficeDepot 6.11 ODP OxfordLanePfd2024 OXLCM 25.40 20.89 PTC Therap PTCT PacificSpecialRt PAACR 0.58 59.38 PayPal PYPL PowerIntegrations POWI 82.80 26.42 PwrShDWA DevMkt PIZ 48.22 PwrShDWA Mom PDP PwrShDWANasdMom DWAQ 93.94 PwrShUS1500 PRFZ 120.79 15.85 PwrShIntlDivAch PID PwrShKBWProp&Cas KBWP 59.43 PwrShNasdInternet PNQI 111.78 PwrShQQQ 1 QQQ 144.44 PwrShRuss1000Low USLB 29.51 27.64 PwrShWaterRscs PHO PreferredBankLA PFBC 58.98 Priceline PCLN 2008.65 PrincplMillennials GENY 30.47 58.40 ProShrUltNdBTh BIB ProShUltNasdBio UBIO 36.30 ProShUltPrQQQ TQQQ 112.86 4.42 RLJ Ent RLJE

0.17 0.97 0.94 0.30 0.22 -0.82 0.29 -0.80 -0.24 0.06 0.16 ...

0.01 0.73 -0.57 1.52 0.73 0.18 1.45 0.36 1.18 0.33 -0.33 0.14 1.15 0.11 0.21 0.44 1.69 -0.26 0.03 ...

0.16 -1.71 0.67 2.40 1.78 -0.99 0.06 0.10 -4.82 0.02 -0.42 0.33 0.74 0.02 -0.04 7.12 0.33 1.08 -2.81 -0.25 14.34 0.23 -2.28 -2.65 0.08 -1.29 0.11 -0.11 0.43 2.12 0.18 0.14 -2.57 -1.61 0.03 2.23 -0.39 -0.01 -0.08 0.20 0.45 0.15 -0.59 0.14 5.00 -0.85 0.27 -0.40 4.66 0.53 0.19 -0.01 -1.71 -0.86 0.15 0.15 -1.01 1.14 0.11 -0.95 -0.01 0.06 0.23 0.28 -0.36 -0.20 -0.31 0.23 1.98 0.24 -0.65 0.53 ...

0.61 -1.17 0.22 0.26 -0.79 -1.07 -0.14

-0.1 0.2 0.5 ...

0.3 ...

0.1 0.3 0.3 ...

-0.1 0.4 1.0 1.0 -1.8 0.3 0.4 1.0 2.7 4.2 0.7 0.3 0.1 0.3 1.6 -0.7 4.0 3.9 1.5 3.2 1.5 2.1 0.5 3.0 1.3 11.1 3.6 -0.3 ...

1.0 -1.5 0.7 -0.3 1.0 1.2 -0.4 4.7 ...

1.3 1.8 0.5 ...

0.1 -0.1 0.4 0.5 -0.1 0.1 0.5 -0.1 -1.2 0.4 1.0 2.0 3.2 0.4 6.4

70.00 45.55 30.30 26.15 29.72

0.60 -1.20 -0.03 -0.06 -0.20

52-Wk % Sym Hi/Lo Chg

ROBOGlblRobotics ROBO SEI Investments SEIC SITO Mobile SITO Semtech SMTC SimulationsPlus SLP SpectrumPharm SPPI SVB Cap II Pfd SIVBO TRowePrice TROW TowerSemi TSEM TriumphBancorp TBK TuttleTacticMgmtUS TUTT 2U TWOU UplandSoftware UPLD VangdIntlHiDiv VYMI VangdRuss1000 VONE VangdRuss1000Grw VONG VangdRuss3000 VTHR VangdRuss2000 VTWO VangdRuss2000Grw VTWG VangdTotIntlStk VXUS VaronisSystems VRNS VeriSign VRSN VicShDevEnhVol CIZ VicShEMVolWtd CEZ VicShIntlHiDivVol CID VicShUS500EnhVol CFO VicShUS500Vol CFA VidentIntlEquityFd VIDI WesternDigital WDC WisdTrChinaxSOE CXSE WisdTrEMQualDivGrw DGRE WisdTrJapanHdgSC DXJS WisdTrUSQltyDiv DGRW

35.80 56.16 6.09 39.95 15.20 8.20 27.81 81.25 27.60 28.40 22.80 50.66 25.35 64.63 113.64 125.82 113.81 115.27 125.54 53.67 39.30 99.11 33.32 29.09 35.45 44.78 44.95 26.65 95.56 71.61 25.10 40.45 37.50

...

0.1 -4.2 2.1 4.8 2.3 0.9 0.3 0.1 7.1 0.3 0.5 -0.7 0.2 0.2 0.1 0.1 0.1 0.1 0.4 -1.7 0.2 0.2 -0.1 0.3 ... ...

-0.2 0.6 0.3 0.1 0.5 0.1

Nasdaq lows - 32 AptevoTherap APVO BCommunications BCOM Biolase BIOL BisonCapAcqnRt BCACR BurconNutraScience BUR CH Robinson CHRW ChinaLending CLDC Clearfield CLFD Co-Diagnostics CODX Compugen CGEN CyclacelPharm CYCC DAVIDsTEA DTEA Dryships DRYS EssaPharma EPIX ExelaTech XELA GSV Capital GSVC GreenPlains GPRE NatlSecurity NSEC NetElement NETE NeuroMetrix NURO OrionEnergySys OESX ProShUltShNasdBio ZBIO ProShUltraProShQQQ SQQQ ProShUltShNdBtech BIS S&W Seed SANW SG Blocks SGBX SenesTech SNES Shire SHPG SmartSand SND SunesisPharm SNSS TileShop TTS VS2xVIXShortTerm TVIX

1.68 -1.7 14.60 1.2 0.79 -2.4 0.33 -2.9 0.77 -8.0 63.41 -5.4 2.00 -14.3 11.65 -0.9 4.70 -1.4 3.25 ...

1.71 -2.3 5.01 -4.7 0.42 -14.2 0.25 -16.6 6.35 -6.8 4.06 -0.5 18.90 -1.3 13.50 -0.4 0.42 4.5 1.96 -7.8 1.02 -1.5 11.65 -3.4 27.77 -0.4 22.07 -2.0 3.60 -1.3 4.06 -3.2 3.88 -0.2 158.54 -1.6 6.56 -13.3 2.51 -0.8 14.05 -4.6 16.56 -1.8

Dividend Changes Dividend announcements from July 20.

Company

Symbol

Amount Yld % New/Old Frq

Payable / Record

Increased Ally Financial Chemical Financial Citigroup Consolidated-Tomoka Greene County Bancorp Landmark Infr Partners Mesa Royalty Trust Morgan Stanley Newmont Mining Phillips 66 Partners Stanley Black & Decker Valero Energy Partners Western Gas Partners

ALLY CHFC C CTO GCBC LMRK MTR MS NEM PSXP SWK VLP WES

2.2 2.3 1.9 0.2 1.5 8.1 11.5 2.2 0.9 4.8 1.7 3.9 6.7

.12 /.08 Q .28 /.27 Q .32 /.16 Q .05 /.04 SA .0975 /.095 Q .355 /.3525 Q .116 /.09816 M .25 /.20 Q .075 /.05 Q .615 /.586 Q .63 /.58 Q .455 /.4275 Q .89 /.875 Q

Aug15 /Aug01 Sep15 /Sep01 Aug25 /Aug07 Aug30 /Aug10 Aug31 /Aug15 Aug14 /Aug01 Oct31 /Jul31 Aug15 /Jul31 Sep28 /Sep14 Aug11 /Jul31 Sep19 /Sep01 Aug10 /Aug01 Aug11 /Jul31

Company

Symbol

InfraCap REIT Preferred Newfleet Multi Uncon Bd Saba Closed-End Funds ETF Stone Harbor Em Mkts Fd Stone Harbor Em Mkts Fd Stone Harbor Em Mkts Fd Stone Harbor EM Tot Incm Stone Harbor EM Tot Incm Stone Harbor EM Tot Incm Tierra XP Latin Am Rl Est Virtus Newflt Dyn Credit

PFFR NFLT CEFS EDF EDF EDF EDI EDI EDI LARE BLHY

Amount Yld % New/Old Frq

Payable / Record

12.9 4.5 7.9 13.3 13.3 13.3 11.6 11.6 11.6 1.5 4.5

.28058 .09604 .14 .18 .18 .18 .1511 .1511 .1511 .04 .09329

M M M M M M M M M M M

Jul31 /Jul24 Jul31 /Jul24 Jul25 /Jul24 Aug31 /Aug21 Sep28 /Sep18 Oct26 /Oct16 Aug31 /Aug21 Sep28 /Sep18 Oct26 /Oct16 Jul25 /Jul24 Jul31 /Jul24

2.4 2.7

.40 .24

Q A

Sep15 /Aug25 Aug14 /Jul31

Foreign Carnival ADR Himax Technologies ADR

CUK HIMX

Funds and investment companies Barings Corp Investors Barings Part Investors

MCI MPV

7.8 7.7

.30 .27

Q Q

Aug11 /Aug01 Aug11 /Aug01

KEY: A: annual; M: monthly; Q: quarterly; r: revised; SA: semiannual; S2:1: stock split and ratio; SO: spin-off.

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

B10 | Friday, July 21, 2017

* ***

THE WALL STREET JOURNAL.

BANKING & FINANCE

Capital One Posts 10% Rise in Net

SCOTT MCINTYRE/BLOOMBERG NEWS

BY ANNAMARIA ANDRIOTIS

A Costco store. Visa is the network for many in-demand credit cards. Costco recently switched to Visa from American Express.

Visa Lifts Financial Targets

BY MARIA ARMENTAL AND ANNAMARIA ANDRIOTIS Visa Inc. raised its financial targets for the year as its quarterly results beat Wall Street expectations, driven by a higher number of transactions.

Profit surged to $2.06 billion, or 86 cents a Class A share, from $412 million, or 17 cents a share, a year earlier when results were hurt by charges related to the acquisition of its European operations. Net operating revenue rose 26% to $4.57 billion. Analysts surveyed by Thomson Reuters had expected profit of 81 cents a share on $4.36 bil-

Results Diverge at 2 Big Trust Concerns

BY JUSTIN BAER Bank of New York Mellon Corp. on Thursday posted a quarterly profit that beat estimates, renewing investor attention on a disappointing second quarter for rival Northern Trust Corp.

The shares of Northern Trust tumbled 8% on Wednesday and fell an additional 1.9% Thursday following a disclosure of profit that was below analysts’ expectations. Bank of New York Mellon’s shares rose 1.6% Thursday.

A key difference between the two trust banks: how each navigated the rise in shortterm interest rates in the U.S. The Federal Reserve raised the benchmark federalfunds rate in March and June.

BNY Mellon’s net interest revenue rose 4% to $826 million from the first quarter. At Northern Trust, revenue on interest fell 7% from the same period.

Northern Trust attributed the decline to a drop in U.S. deposits and an increase in those from the U.K. and Europe, where lending rates have remained at historic lows. The shift in mix squeezed interest margins at the firm.

BNY Mellon has a smaller wealth-management business, whose clients tend to move their deposits more quickly than large institutions, said longtime finance chief Todd Gibbons in an interview Thursday. Contractual obligations with some of those clients limited defections even as rates rose, he said.

Bank of New York’s net income rose to $926 million, or 88 cents a share, in the second quarter from $825 million, or 75 cents, a year earlier. Analysts had predicted per-share profit of 84 cents.

Fees from investment services, the bank’s core custody business, rose 4% to $1.86 billion. Money-management fees climbed 6% to $879 million.

The results were the last for Gerald Hassell as BNY Mellon’s chairman and chief executive.

Mr. Hassell, who turns 66 this year, on Monday ceded his post to Charles Scharf, the former CEO of Visa Inc.

lion in net operating revenue.

Visa shares, which have been trading at all-time highs, rose 1.2% to $99.37 after hours.

Operating expenses rose by 31% after adjustments, largely tied to the Visa Europe acquisition that the company completed in June 2016.

San Francisco-based Visa has delivered a string of earnings beats fueled by a growing credit-card market. Payments volume for the quarter rose 38% from a year earlier on a constant-dollar basis to $1.9 trillion, while total processed transactions rose 44% to 28.5 billion.

Visa is the network for many in-demand credit cards, including the J.P. Morgan Chase Sapphire Reserve card, and has also benefited from Costco Wholesale Corp. cards’ switch to the Visa network from American Express. Visa processes credit- and debit-

card transactions and makes most of its money from transaction-related fees.

The company is also benefiting from the global economic recovery, said Vasant Prabhu, Visa’s chief financial officer, on the company’s earnings call. Visa’s cross-border volume increased 11% on a constant dollar basis from a year prior when Europe is included in last year’s results.

Visa is also trying to make inroads in China. Chief Executive Al Kelly said on the earnings call that the company filed an application on Wednesday with the People’s Bank of China for a domestic license. The company has been trying to get more cards to be issued by Chinese banks to consumers for use inside th7e country. The U.S. and China reached an agreement in May that is supposed to result in more access

to the Chinese economy for electronic-payments providers.

With one quarter to go, Visa again raised financial targets for the current business year, saying it now expects adjusted profit to increase about 20%, compared with its earlier view of an increase at the high end of the midteens. It also expects net revenue to increase about 20%, up from its previous view of an increase at the high end of 16% to 18%.

On the earnings call, Mr. Kelly reiterated the company’s commitment to get more customers to stop using cash—a key piece of Visa’s growth strategy. The company last week announced an initiative that offers up to 50 restaurants and food vendors in the U.S. $10,000 apiece to pay for technology upgrades and marketing costs if they agree to stop accepting cash from customers.

Capital One Financial Corp. said its second-quarter earnings and revenue rose, helped by a ramp-up in creditcard balances industrywide and the rise in interest rates.

Profit for the quarter increased 10%, to $1.04 billion, or $1.94 a share, from $942 million, or $1.69 a share, in the year-ago period. Revenue rose 7% to $6.7 billion. Results beat analyst estimates, and shares jumped in after-hours trading.

Capital One, which has large credit-card and autolending divisions, said its net interest margin increased 0.15 percentage point from the year-ago quarter, largely due to higher interest rates and growth in its domestic card business. Credit-card interest rates generally rise following Federal Reserve rate increases.

Despite beating analyst expectations, borrower performance remains a top issue for the bank, which is known for its history as a large subprime credit-card lender. The company is a good indicator of the general state of consumers’ ability to repay their debts because, unlike some other card issuers, it primarily doesn’t focus on extending credit to the affluent.

The bank wrote off more delinquent loans as losses and set more money aside to cover for future losses. Both issues are being watched by shareholders amid concerns over whether consumer credit is in the early stages of deteriorating.

Credit concerns resurfaced on Thursday after another credit-card company reported earnings. Shares of Alliance

The credit-card issuer set aside more money last quarter to cover loan losses. provisions for loan losses in the company’s U.S. credit-card business from the previous quarter.

In June, the Federal Reserve conditionally approved Capital One’s capital plan in the regulator’s annual “stress tests,” saying the firm would have to resubmit its plan by Dec. 28 to address shortcomings in its process.

The Fed said Capital One “exhibited material weaknesses in its capital planning practices.”

Goldman Sachs Partners Are Pulling Back

BY LIZ HOFFMAN Goldman Sachs Group Inc. became a public company 18 years ago. It is starting to look more like one.

Goldman’s 450 or so partners own just 4.8% of the firm today, according to a securities filing late Wednesday.

That is the lowest level since its initial public offering and slips under a 5% regulatory threshold that for years has mandated public disclosures that opened a window into the sway held by this elite inner circle.

Goldman won’t have to disclose its partners’ stakes, or

their buying and selling of the bank’s shares, unless the group’s collective stake jumps back over 5%.

That would shield from public view when partners unload shares en masse, which happened last winter as Goldman’s stock touched highs.

The filings are the last outward vestige of the old private partnership that once ruled Goldman. The document itself is defiantly old-school, using a stripped-down format abandoned by most companies for Securities and Exchange Commission submissions.

The private-partnership era, which stretched from

Goldman’s 1869 founding to its 1999 IPO, once meant that access to its upper echelons meant tying one’s personal fortunes to the firm’s capital.

Still, the ritual of selecting partners every two years has remained a vital part of the firm’s identity, a way to reward and motivate its most promising employees and help guard the firm’s culture as Wall Street changes around it.

Partner slots carry minimum salaries of about $1 million and bonuses that can be multiples of that. Partners also get access to invest in firm deals and other perks.

Goldman’s IPO made its

partners much more wealthy.

But it also set in motion a slow-motion transformation of the firm. With more than 95% of its shares held by outside investors, Goldman is now, more than ever, a public company.

That lesson was hammered home this week, when Goldman faced tough questions from analysts about whether it has moved quickly enough to address weakness in its core trading business.

The firm posted steep declines in fixed-income trading that sparked a 2.6% drop in shares.

Analysts are also pressuring

Goldman on its signature secrecy, a privilege afforded to private partnerships but not public companies.

On its earnings conference call Tuesday, one analyst questioned why Goldman doesn’t, as peers do, tell investors what they can expect in dividends and share repurchases.

“Analysts and investors are grown up enough” to understand that forecasts might change, the analyst, Autonomous Research’s Guy Moszkowski, told Goldman Chief Financial Officer Martin Chavez.

“I just don’t think you’re doing yourselves any favors by not telling us.”

FINANCE WATCH J.P. MORGAN CHASE

Deal Enables Link To PayPal Accounts Two of the highest-profile companies providing mobile wallets in the U.S., J.P. Morgan Chase & Co. and PayPal Holdings Inc., will now be partners as well as competitors under terms of a deal announced Thursday.

The agreement helps broaden the reach of J.P. Morgan’s Chase Pay service, a smartphone application the bank launched last year to drive usage of its credit and debt cards for in-store and internet purchases.

The deal, expected to be fully rolled out by 2018, will also make it easier for customers to load their J.P. Morgan cards into PayPal’s rival application and let them use their reward points to pay for goods and services through PayPal. “These are parallel strategies,” said Jennifer Roberts, the J.P. Morgan executive overseeing Chase Pay. “We want to be where our customers are.”

The rapid growth in mobilepayment transactions has drawn interest from firms in several industries, from smartphone makers like Apple Inc. to credit-card networks like Visa Inc. and retailers like Wal-Mart Stores Inc., and led them to develop their own digital wallets to capitalize on the opportunity.

The volume of mobile online retail payments in the U.S. is expected to reach nearly $319 billion in 2020 from $122 billion in 2015, according to consulting firm Javelin Strategy & Research.

PayPal has a leg up over many of those other companies

MAXIM ZMEYEV/REUTERS

Payment network beats expectations as transactions swell; global recovery cited

Data Systems Corp., a large store credit-card issuer, closed down 9.5% on Thursday, after the issuer that had projected a 2017 credit-loss rate in the mid-5% range was noncommittal on its charge-off rate outlook on its earnings call. ADS also cut 2017 core earnings per share estimates from $18.50 to $18.10.

Capital One’s net charge-off rate for domestic credit cards was 5.11% for the second quarter, down slightly from the first quarter, but up 1.04 percentage points from a year ago.

Provisions for overall credit losses hit $1.8 billion in the second quarter, down 10% from the prior quarter but up 13% from the year-ago period.

In April, the company reported first-quarter earnings that missed analyst estimates, largely due to a 33% jump in

An Apple Watch payment is demonstrated. Mobile-payment transactions have grown rapidly. thanks to its nearly 20-year history in e-commerce. The company says it has 94 million active U.S. customers, and Morgan Stanley analysts said last year that PayPal was accepted at 73% of large internet retailers.

Since last summer, the San Jose, Calif., company has been angling to handle more payments that happen at physical retailers.

The J.P. Morgan agreement enables its cardholders to pay via PayPal in stores. Previously

signed deals gave the same option to PayPal users who hold cards issued by Citigroup Inc., Discover Financial Services and Wells Fargo & Co as well as users of Android Pay and Samsung Pay. —Peter Rudegeair BLACKSTONE GROUP

Private Equity, Real Estate Lift Results Blackstone Group LP’s second-quarter profit rose, helped

by appreciation in its private-equity and real-estate holdings, though a measure of its income came in lower than Wall Street expected.

Global economic growth and sustained investor appetite for stocks, debt, real estate and other assets have buoyed the portfolios of the New York private-equity firm and its peers and given them an open window to sell prior years’ investments.

Blackstone’s private-equity holdings appreciated 2.8% during the

quarter. Its “opportunistic” realestate funds, which make speculative investments in offices, warehouses and shopping centers, rose 5.4%.

“Globally we see a benign business environment, with steady if unspectacular growth across most major economies,” Blackstone President Hamilton “Tony” James said on a call with reporters.

The firm’s $104 billion real-estate business, its largest division by assets, led earnings growth as it sold shares of Hilton Worldwide Holdings Inc. and office buildings acquired in the 2007 buyout of Equity Office Properties Trust during the quarter.

A decade of recovery in realestate markets has reversed early losses on the prefinancial crisis bets of investors such as Blackstone, which acquired Hilton for $18.5 billion and Equity Office for $39 billion in 2007.

In June, Blackstone struck a deal to sell Logicor, a European logistics real-estate firm, to affiliates of China Investment Corp. for about $14 billion.

For the quarter, Blackstone’s earnings rose to $342.8 million, or 51 cents a share, from $198.6 million, or 30 cents a share, a year earlier.

Its economic profit, a closely watched measure of performance that reflects changes in the value of unrealized investments, rose 36% to $705.4 million, or 59 cents a share, though it missed analysts’ estimates for 62 cents.

Assets under management rose to $371.1 billion from $368.2 billion the prior quarter and $356.3 billion a year earlier.

—Matt Jarzemsky

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THE WALL STREET JOURNAL.

Friday, July 21, 2017 | B11

* * * *

MARKETS

Euro Surges as ECB Worries Ease

BY CHRISTOPHER WHITTALL LONDON—The euro jumped against the dollar to its highest level in nearly two years after European EUROPEAN Central Bank MARKETS President Mario Draghi said the ECB will discuss when to trim its huge bond purchases in the fall.

But bond markets remained broadly calm, as Mr. Draghi’s tentative language failed to spark the kind of volatility that followed his comments in June, when he hinted at winding down the stimulus program.

The euro traded at $1.1638 late in the European afternoon on Thursday, up 1.1% on the day against the dollar and its highest intraday trading level since August 2015.

Late in New York trading, the euro was up 1% on the day at $1.1632, the highest late New York rate since Jan. 15, 2015.

Hedge Funds See Rebound In Funding

Meanwhile, 10-year German bond yields were little changed at around 0.54%, and riskier eurozone debt rallied, as financial markets showed signs of mixed reactions to the ECB’s messaging.

That contrasts to the concurrent rises in bond yields and the euro that followed Mr. Draghi’s comments in late June on the improving outlook in the euro area that investors took as the first clues that the ECB is moving closer to ending its easy-money policies.

Yields rise as prices fall.

The ECB’s policies of ultralow interest rates and mass asset purchases have helped pin down the euro and bond yields in recent years.

But with a strengthening European economy, many investors are asking whether the time is nearing when that stimulus will start to be withdrawn. That could mark an important turning point for markets, given that the Federal Reserve is already tightening its own monetary policy and making plans to reduce the size of its balance sheet.

Mr. Draghi described the eurozone economy as “robust” on Thursday, but also high-

RALPH ORLOWSKI/REUTERS

Currency hits more than 2-year high against dollar, but bonds remain calm

Mario Draghi says the ECB will wait to discuss paring bond buys. lighted the lack of inflation in the region, suggesting that there are still reasons to keep stimulus in place.

And while he said the central bank would discuss the issue of scaling back its bondbuying program in the fall, he refused to set a date. The bank’s Governing Council left monetary policy unchanged on Thursday.

The ECB is likely eager to avoid the sharp rise in bond yields that followed the Fed raising the prospect of trimming its bond purchases in 2013, often referred to as the taper tantrum.

Mr. Draghi has “delivered a balanced and nuanced approach to the thorny issue of tapering,” said Arnab Das, head of EMEA and emerging-

market macro research at Invesco Fixed Income. “They are keeping their options open, but they are putting tapering on the table to try to avoid another minitantrum.”

Both bond yields and the euro have moved sharply since Mr. Draghi first hinted at tapering in June. The euro has gained around 4.5% against the dollar over the past month, while the 10-year German bond yield has more than doubled.

Still, there are signs that investors aren’t overly worried about the impact of the withdrawal of stimulus on riskier assets.

On Thursday, Italian and Spanish bond prices rose.

These two markets have benefited from the ECB’s bond-buying program.

“The European story is good right now with growth, and political risk has receded.

It’s a positive backdrop for both the euro and risk assets right now,” said Ryan Myerberg, a senior portfolio manager at Janus Henderson Investors.

He said he believes the euro could break through $1.17 over the summer.

Singapore Exchange Brings Back the Lunch Hour

The average hedge fund was up 3.6% overall in the first half of the year.

The bounceback in fundraising comes amid a steady stretch for hedge-fund investment performance in the first half of the year, with the average fund up 3.6% overall.

Helped by consistent gains for U.S. stocks, the industry has posted 15 monthly gains out of the past 16, the longest such streak since 2004.

Hedge-fund executives have also flagged renewed interest from international investors in the Middle East and Asia as helping overcome dimming support for hedge funds from big-money backers in the U.S. and Europe.

A single quarter’s bounceback won’t cure all of the hedge-fund industry’s woes. The recent inflows just barely overcome the $5.5 billion cashed out in the first quarter, when brandnames such as Och-Ziff Capital Management experienced heavy redemptions.

And as The Wall Street Journal reported Thursday, many money managers are preparing to sell investments—thus shrinking their firms—to pay a tax bill on deferred income due at yearend.

Quantitative traders, prized as the new kings of Wall Street, soaked up the most new money in the second quarter, HFR said.

Event-driven strategies, which include the closely followed activist investors who shake up corporate boardrooms, were a laggard, with nearly $4 billion of outflows in the most recent quarter, according to HFR.

Traders in Singapore soon won’t have to worry about being chained to their desks for lunch.

Singapore Exchange, known as SGX, said it would reinstate a daily one-hour lunch break, in which trading will stop from noon to 1 p.m. local time each day. The move, which will take effect in November, is part of the exchange operator’s efforts to boost interest and trading volume in its market.

The exchange scrapped its

longstanding lunch break in March 2011.

While going out for lunch is a dying tradition in the U.S. during the working week, the meal is still sacrosanct in many countries across Asia, not just for eating but also for networking.

In 2012, hundreds of brokers in Hong Kong protested when the Hong Kong stock exchange cut its onetime two-hour midday trading break down to the current 60 minutes.

Stock exchanges in mainland

China, Malaysia and Tokyo also have midday lunch intermissions. The Indonesia Stock Exchange has a 90-minute break each day, an intermission that swells to 2½ hours on Fridays.

Still, continuous trading occurs on exchanges in India, South Korea and Australia. And no major Western stock exchange has a midday break. In the U.S., the New York Stock Exchange gave up its lunch intermission in 1871.

Singapore had originally

scrapped the lunch hour to increase competitiveness with its Asia-Pacific peers, but critics said trading volume dried up during what were normal lunch hours anyway.

The exchange has also announced plans to increase the minimum bid sizes for some listed securities and other measures to boost trading volume.

Many appear to feel a proper lunch break will help concentrate traders’ minds.

—Steven Russolillo

BY MIN ZENG

The U.S. government bond market got a boost as comments from European Central Bank President Mario Draghi deflated some anxiety over a shift toward less monetary stimulus.

The ECB held its interestrate policy and bond-buying program steady CREDIT Thursday.

MARKETS During a press conference, Mr. Draghi gave a nod to the eurozone’s economic recovery, but signaled that inflation isn’t showing convincing signs of picking up.

The ECB chief added that policy makers haven’t set a precise date on when to discuss policy changes.

Bond investors took the remark as less hawkish than the one Mr. Draghi made last month that kick-started the recent selloff of government bonds in the developed world.

Mr. Draghi on June 27 signaled that the central bank might start winding down its monetary stimulus as the eurozone economy picks up speed.

“The hawkish Draghi view has turned into cautious ECB thesis,’’ said Victor Xing, founder and investment analyst at Kekselias Inc. The buying sent the yield on the 10-year Treasury note to as low as 2.239% during early trading, the lowest level since June 28. Yields fall as bond prices rise. The yield pared its decline in the afternoon. It settled at 2.266%, compared with 2.268% Wednesday.

Bond yields have fallen after a recent rise. The 10-year yield nearly topped 2.4% on July 7 before turning lower.

The shift bolsters some money managers’ belief that without signs of accelerated inflation, it would be difficult for a rise in yields to have staying power.

Major central banks are still struggling to push up inflation to their desired target, making it difficult for policy makers to dial back monetary stimulus even as the global economy has been showing broad improvement, said analysts.

AUCTION RESULTS

Here are the results of Thursday's Treasury auction.

All bids are awarded at a single price at the marketclearing yield. Rates are determined by the difference between that price and the face value.

10-YEAR TIPS Applications Accepted bids " noncompetitively Auction price (rate) Interest rate Bids at clearing yield accepted Cusip number

$27,001,042,400 $14,321,777,400 $23,992,300 98.936936 (0.489%) 0.375% 80.49% 9128282L3

The Treasury inflation-protected securities, dated July 31, 2017, mature on July 15, 2027.

Treasury Auctions

Appliance Retailers Send Dow Lower

BY RIVA GOLD AND CORRIE DRIEBUSCH The Dow Jones Industrial Average pulled back from a record Thursday, as a drop by Home Depot took roughly 43 points off the blue-chip index.

Appliance reEQUITIES tailers fell after Sears Holdings said it would start selling its Kenmore line of refrigerators and stoves on Amazon.com’s website, its first distribution of its kitchen appliances outside its own stores.

Sears shares rose 92 cents, or 11%, to $9.60, while Lowe’s sank 4.27, or 5.6%, to 72.56 and Home Depot fell 6.27, or 4.1%, to 147.03. Best Buy, which also sells appliances, fell 2.21, or 3.9%, to 53.96.

The Dow industrials fell 28.97 points, or 0.1%, to 21611.78, while the S&P 500 fell 0.38 point, or less than 0.1%, to 2473.45. The Nasdaq Composite rose 4.96, or less than 0.1%, to 6390.00, a fresh high and its 10th straight session of gains. All three indexes closed at records Wednesday.

“At this point, the market is viewed as so frothy, it’s definitely a ‘sell first and sort it out later’ mentality,” said Justin Wiggs, managing director in equity trading at Stifel Nicolaus.

PATRICK FALLON/BLOOMBERG NEWS

For the first time since 2015, hedge funds have reason for cheer.

The hedge-fund industry ended a record six consecutive quarters of investor outflows in the secFUNDS ond quarter by raising more than $6 billion as a group, according to researcher HFR Inc. Faced with a stream of disaffected clients and steady outflows, the $3 trillion hedge-fund industry has spent more than a year on the defensive. Some money managers, such as ex-Goldman Sachs star Eric Mindich, have outright closed up shop, while others have openly wondered whether it was worth sticking around if they have to cut their notoriously high fees to do so.

ROSLAN RAHMAN/AFP/GETTY IMAGES

BY ROB COPELAND

Treasurys Take Their Cue From Overseas

A shopper at a Sears store. The company plans to sell its Kenmore appliances on Amazon.com.

Meanwhile, corporate earnings drove swings in individual stocks. Qualcomm slid 2.81, or 4.9%, to 53.97 after the producer of smartphone chips said profit dropped in the latest quarter. American Express declined 58 cents, or 0.7%, to 85.35 after second-quarter earnings fell from last year.

Monetary policy was also in focus for most investors, with a pair of central-bank meetings driving stocks, bonds and currency markets.

The European Central Bank

left its key interest rates unchanged, as expected, and delayed discussion over whether to wind down its bond-buying program.

The Stoxx Europe 600 declined 0.4%. The euro initially fell but later climbed during ECB President Mario Draghi’s news conference, rising 1% to $1.1632 for its highest settlement since January 2015.

The wider WSJ Dollar Index, which tracks the dollar against a basket of 16 currencies, fell 0.3%.

Japan’s Nikkei Stock Average led markets in Asia higher after the Bank of Japan pushed back its inflation forecast, boosting hopes for extended monetary stimulus.

The Nikkei Stock Average added 0.6%, also helped by robust export data in June and a weaker yen. Early Friday, the Nikkei was down 0.2%. Elsewhere early Friday, Australia’s S&P ASX 200 was off 0.6%, while Hong Kong’s Hang Seng Index and South Korea’s Kospi were flat.

The Treasury Department will auction $175 billion in securities next week. Details (all with minimum denominations of $100): Monday: $39 billion in 13week bills, a reopening of an issue first sold on April 27, 2017, maturing Oct. 26, 2017. Cusip number: 912796LZ0.

Also Monday, $33 billion in 26-week bills, dated July 27, 2017, maturing Jan. 25, 2018.

Cusip: 912796NP0.

Noncompetitive tenders for both issues must be received by 11 a.m. EDT Monday and competitive tenders, by 11:30 a.m.

Tuesday: $26 billion in two-year notes, dated July 31, 2017, maturing July 31, 2019.

Cusip: 9128282K5. Noncompetitive tenders must be received by noon EDT Tuesday; competitive tenders, by 1 p.m.

Wednesday: $15 billion in two-year floating-rate notes, dated July 31, 2017, maturing July 31, 2019. Cusip: 9128282M1.

Also, $34 billion in five-year notes, dated July 31, 2017, due July 31, 2022. Cusip: 9128282P4.

Noncompetitive tenders for the FRNs must be received by 11 a.m. EDT Wednesday; competitive tenders, by 11:30 a.m. Those for the five-year notes are due by noon and 1 p.m., respectively.

Thursday: $28 billion in seven-year notes, dated July 31, 2017, maturing July 31, 2024.

Cusip: 9128282N9. Noncompetitive tenders must be received by noon EDT Thursday; competitive tenders, by 1 p.m.

For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.

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B12 | Friday, July 21, 2017

THE WALL STREET JOURNAL.

* ***

MARKETS

Europe’s Most Fragile Bonds Strengthen Expectations ECB will Hanging reduce stimulus aren’t in There causing investors to flee weak economies Despite increasing

BY MIKE BIRD Even as Europe prepares to tighten the monetary taps, investors appear unfazed about the prospects for its most fragile economies.

The bonds of the weakest economies have risen in value relative to those of ultrasafe Germany, despite expectations that the European Central Bank will reduce its stimulus—which has benefited these economies the most.

That speaks to the cautious path the ECB is treading in communicating the end of monetary policy that has shaped markets, and the more positive outlook for the region’s economy and politics, investors say.

On Thursday, the ECB left its stimulus measures unchanged but signaled it would discuss how to proceed with interest rates and bond buying—part of its bid to stimulate the regional economy—in the fall.

Bond yields in so-called peripheral nations including Spain, Portugal and Italy have slid sharply since the summer of 2014, when ECB President Mario Draghi first hinted that the bank would kick off a quantitative-easing program. As the eurozone’s economy strengthened, investors began eyeing an end to the unprecedented stimulus.

At the start of 2017, less than a fifth of investors surveyed by Citi Research believed that peripheral European spreads—the gap between yields on those nations’ debt and German bonds—would end the year lower. Yields move in the opposite direction to prices. Nearly half believed they would end the year sharply or moderately higher.

Change in spreads between selected countries' 10-year government bonds and Germany's 150 percentage points 100

expectations that the ECB will wind back its bond buying, potentially reducing demand for all sorts of debt, spreads on the bonds of Europe's more fragile economies haven’t surged.

50 0

Italy Spain Ireland

–50 –100

Portugal

–150 Greece –200 January

February

March

April

May

June

July

The ECB's quantitative-easing program has now been running for more than two years, and expectations for the withdrawal of stimulus have risen.

German yield curve 1.5%

ECB balance sheet

Yield on 10-year German bund

€5 trillion

0.6% 0.5 0.4 0.3 0.2 0.1 0 –0.1 –0.2

July 20, 2017

1.0

4 3

0.5

2

0

1

–0.5 –1.0

July 20, 2016 1 3 1 2 3 4 5 months years Maturity

10

0 20 30 2007 ’08 ’09 ’10 ’11 ’12 ’13 ’14 ’15 ’16 ’17

2016

€1 = $1.1516 Sources: FactSet (spreads, curve, balance sheet); Tradeweb (bund)

But since December, when the ECB said it would reduce bond purchases by €20 billion ($23 billion) a month, Spanish, Portuguese, Irish and Greek bond yields have declined in comparison with German yields. The spread between German yields and those on other bonds is commonly used as a measure of the risk that investors attach to holding other debt.

“We don’t think we’re going to see a car crash, a European government-bond market tantrum,” said Andrea Iannelli, fixed-income investment director at Fidelity International.

The sharpest fall in yields this year has been in

Greece, where the spread against German bunds has dropped from more than 6 percentage points to around 4.5.

The country, which once seemed on the verge of leaving the eurozone, received its latest tranche of bailout funds from international creditors earlier this month and is even considering returning to private markets by issuing its first bond in three years.

Investors have also returned to bonds from Ireland and Spain, two countries where economic growth has outperformed and budget deficits have fallen sharply.

One reason for the lack of widening in spreads is the care

’17

THE WALL STREET JOURNAL.

the ECB has taken in communicating with investors, said Gilles Pradere, a senior bond-fund manager at RAM Active Investments.

“It’s still a very dovish message that they’re sending overall,” said Mr. Pradere. “They talk about patience, that they’re not done yet.”

On Thursday, Italian, Spanish, Portuguese and Greek bonds continued to rally, in a sign that investors are becoming increasingly relaxed about holding the debt of these countries, which they once sold heavily.

Mr. Pradere said the ECB doesn’t want to repeat the mistake he believes the U.S. Fed-

eral Reserve made in 2013.

That May, the Fed’s announcement that it would begin reducing bond-buying sparked the so-called taper tantrum, when U.S. 10-year Treasury yields rose from 2% to 3% by early September.

Many analysts now expect the ECB to announce in September a reduction in the bond-buying program for a fixed period—for example, cutting monthly purchases to €40 billion for a particular number of months. The Fed trimmed its buying by a set amount every month until it was no longer accumulating bonds.

Investors’ concerns over the periphery countries have been

HEARD ON THE STREET

Email: heard@wsj.com

FINANCIAL ANALYSIS & COMMENTARY

How Quants Are Calming the Stock Market “It’s quiet out there. Too quiet.”

The number of times that this movie cliché turned trading cliché has appeared in market commentaries recently is a testament to how dull trading has been and how nervous investors are about it.

Stock-market volatility was so low in the first few months of the year that some analysts said bad times were coming soon. Then the market got calmer. Over half of the 25 lowest readings ever in the VIX, the CBOE Volatility Index that is widely cited as a proxy for investor caution, have occurred since May. This month the VIX hit its lowestever 30-day moving average.

The main explanation why options prices, upon which the VIX is based, are showing little concern about volatility in the future is that actual, realized volatility of stocks also has been so low.

The most commonly cited

Quiet Riot VIX, 30-day moving average 60 50 40 30 20 10 0 2007

2010

THE WALL STREET JOURNAL.

Traders fill orders in the VIX pit at the Chicago Board Options Exchange.

factors are that central banks will save the day in the case of bad news and that there have been few recent economic surprises.

Neither will last forever, but there may be a less-noticed factor damping volatility with more staying power: quant trading. The share of trading done by funds run by algorithms has doubled in

just four years to over a quarter of U.S. stock turnover, according to Tabb Group. Their success is partly a result of new flows of information from satellites, credit-card transactions, social media and other sources being interpreted by an army of Ph.D.s with massive computing power.

“If there are fewer things

Sources: FactSet (VIX); Scott Olson/Getty Images (photo)

that lead to surprises because information is going from completely unknown to completely known…then you should have less volatility,” says Leigh Drogen, a former quant trader and chief executive officer of crowdsourced earnings-estimate provider Estimize.

Investors sell when they hear bad news about a company, but if they get that news from multiple sources over time, the selling should be spread out. In the past, everyone learned of the downturn when the company announced earnings, making the selloff rapid and the stock more volatile. While hard to quantify, the VIX, now below 10, may well be two or more points lower thanks to better information.

But could this happy state of affairs contain the seeds of a major comeuppance?

Despite more information, business cycles or geopolitical risks haven’t gone extinct. Traders grappling with

a low-return world in which passive funds rule have crowded into similar strategies and bet on the same statistical anomalies, often using leverage. Mr. Drogen doesn’t think such statistical arbitrage investors will bolt in a market shock, but he admits that high-frequency traders might. Because they provide so much liquidity, and because computerized trades won’t be placed if liquidity dries up, a quant exodus could happen.

The “quant quake” in August 2007 saw some funds lose nearly a third of their value in a week and many odd stock market moves, but no systemic shock. With traditional stock pickers and bank trading desks playing a much smaller role than a decade ago and quant funds being far larger, the notion that we are experiencing the calm before a fairly nasty storm may be more than just a bad screenplay.

—Spencer Jakab

soothed by stronger growth in the eurozone, which has recently outstripped that in the U.S. “The economy is definitely in a better place than it was last year—that helps sentiment and risk appetite,” said Mr. Iannelli at Fidelity International.

Worries about regional political risk that capped investors’ enthusiasm for Europe through much of this year have also waned. The antieuro political candidates that had ridden high in French and Dutch opinion polls failed to win their elections, while support for Germany’s antiestablishment party has fallen.

Some analysts and investors still believe that debt markets in Europe’s periphery are most exposed to a scaling back of stimulus, or tapering.

“We remain firmly biased toward peripheral spreads widening going forward,” said Rabobank strategists in a recent research note. The Dutch bank said that as investors begin to price in tapering, financing costs will rise for these countries, which will feed into concern over their ability to eventually pay back debts.

Analysts say that Italian debt is most at risk from tapering. The country’s government debt is equivalent to around 133% of gross domestic product, compared with 97% in France and 68% in Germany.

Spreads on other financially stressed eurozone countries’ debt have fallen relative to German bonds, but the differential on Italian 10-year debt is effectively unchanged compared with eight months ago.

Political risk in Italy hasn’t faded. The country will go to the polls early next year, with the anti-euro populist 5 Star Movement regularly leading in national surveys.

“The Italian risks are just coming later; they’ve not been resolved,” said Richard Barwell, senior economist at BNP Paribas.

WSJ.com/Heard

OVERHEARD The five stocks demoted from the S&P 500 were onetime market darlings that have fallen on tough times.

Bed Bath & Beyond could do no wrong for years, but lately has been hammered by Amazon.com. Murphy Oil rose ninefold in a decade, but was hit by the oil price collapse.

But drug company Mallinckrodt may have had the greatest rise and hardest fall of all.

The company, which came into existence in 2013, is one of several that buys up old drugs rather than doing pure research. They all have been hammered on criticism of high drug prices.

Mallinckrodt wins extra bashing for its opioid business, which cost it a $35 million fine last week for failing to report suspicious drug orders. Company shares had tripled at their peak but lost all of their gains before being tossed from the index.

Draghi Performs a Delicate Policy Dance Gas Everywhere but No Way to Ship It The European Central Bank is playing for time on extreme monetary policy, but markets know a decision on winding down its bond-purchase program can’t be put off forever.

The main message from ECB President Mario Draghi on Thursday was that nothing had been decided about the pace or duration of purchases, running at €60 billion ($69.1 billion) a month until the end of 2017. The ECB clearly would like to avoid market overreaction.

Mr. Draghi said an unwarranted tightening of conditions “was the last thing we may want.” But investors are hypersensitive to even slight changes in tone. German bond yields and the euro initially fell when the ECB’s

Rally On How many dollars €1 buys $1.40 1.30 1.20 1.10 1.00 2012 ’13

’14

’15

’16

’17

Source: FactSet

policy statement showed it retaining the option to do more asset purchases if needed. They then rose again as Mr. Draghi was upbeat on growth and didn’t sound too worried about the rise in yields and the euro in recent weeks.

It isn’t clear, however,

that the ECB’s decision will be any easier in the fall than it might be now. While the growth picture in the eurozone is strong, Mr. Draghi was forced to acknowledge that inflation “is not where we want it to be.” But he reiterated that there was confidence that the economic expansion would lift inflation toward the ECB’s aim of “below, but close to” 2%.

The ECB’s ambiguity has helped keep market pressures contained.

The focus will now move swiftly to Mr. Draghi’s appearance at the Federal Reserve’s Jackson Hole conference in late August, where his speech will be scrutinized for hints on the ECB’s exit plans. Mark your diaries.

—Richard Barley

Energy Transfer Partners had hoped to have the first phase of its Rover pipeline up and running by now, transporting natural gas from America’s most prolific natural-gas basins to other parts of the country.

Rushing to complete construction, the company allegedly spilled drilling fluid into a protected wetland and then demolished a historic house adjacent to the pipeline. Federal investigations into both have likely delayed startup possibly until the fall for a project to take gas extracted in Marcellus and Utica shale regions in Appalachia.

That is bad not only for ETP but several large energy producers selling gas at a steep discount to benchmark

prices off which futures contracts are based. A contract for the difference between a hub in Pennsylvania and the main U.S. futures price doubled to $1.30 a million British thermal units between early May and late June, a 40% discount.

That is just a temporary setback in a region where drilling is expanding far quicker than transport.

There is $20 billion in planned pipeline projects in the region, according to Citigroup, yet even that may not be enough to absorb the boom in production. The two basins produce four times the gas coming from the Permian Basin in the Southwest that attracts far more attention because of its oil output.

Before the shale boom, the Northeast and Midwest had plenty of pipeline capacity, but it carried gas from places like Texas and Louisiana. Now, the Northeast has too much gas and needs to ship it to the Midwest’s heating and industrial customers.

Eventually the old trading flows should reverse so gas goes south to the Gulf of Mexico’s petrochemical facilities and export hubs.

Yet cheap northeastern gas still will have a hard time competing with essentially free gas, increasing volumes of “associated” production coming out of the oil patch closer to the Gulf of Mexico that will be sold at any price.

—Spencer Jakab

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How chef Dan Barber found his calling on his grandmother’s farm M5 HOMES

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MARKETS

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PEOPLE

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MANSION

UPKEEP

VALUES

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NEIGHBORHOODS

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REDOS

—Zane Grey |

SALES

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FIXTURES

THE WALL STREET JOURNAL.

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BROKERS

Friday, July 21, 2017 | M1

REBECCA STUMPF FOR THE WALL STREET JOURNAL (3)

© 2017 Dow Jones & Company. All Rights Reserved.

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‘Stars shone white in a velvet sky.

The dry wind from mountain and desert blew in their faces.’

WYOMING

Nearly 80,000 acres $23 million GONE RANCHING Russell and Glenda Gordy, right, on their Wyoming Ranch. Mr. Gordy flies his own helicopter to access all corners of his spread.

The Ranch Collector JANIE OSBORNE FOR THE WALL STREET JOURNAL; MATT FURMAN FOR THE WALL STREET JOURNAL (TOP INSET)

Oilman Russell Gordy has amassed 155,000 acres of land—for about $96 million— for hunting, fishing and raising cattle; a camo wardrobe for all seasons.

MONTANA 48,000 acres $45 million

HAPPY TRAILS The Gordy family’s Double Arrow ranch outside Livingston, Mont., cost more than $45 million. It reaches from the Yellowstone River to the Crazy Mountains of the northern Rockies.

AMY MIKLER FOR THE WALL STREET JOURNAL

BY AMY GAMERMAN

SOUTH TEXAS 19,000 acres $18 million

TEXAS SIZE La Ceniza ranch has a $5 million, 15,000-square-foot, hacienda-style retreat built for hunting trips with friends and family that was designed by Glenda Gordy and a builder.

“IF WE WERE TO THROW you out here, they’d never find you,” said Russell Gordy, as he piloted his helicopter over the Absaroka mountains, flying from his sprawling Montana ranch to his even bigger ranch in Wyoming.

Mr. Gordy, a 66-year-old Texan with a deadpan sense of humor who made his fortune in the oil-and-gas industry, has two private planes. But the helicopter comes in handy for short hops around his domain: 155,000 or so acres of mountains, rivers, buttes and forest spread patchwork across the West, amassed for his personal enjoyment at a cost of roughly $96 million.

“I’ve always liked land. Every time I sold an oil and gas property, I would take some of the money and buy ranches,” said Mr. Gordy, whose closets are full of camouflage clothing, grouped Please turn to page M10

VILLAGES DANGLE AN ORGANIC CARROT

INSIDE

In rural England, gastropubs and artisanal shops with seasonal produce are attracting affluent home buyers to the countryside; the influx of the ‘skinny latte’ crowd has led to a 10% home-price premium in some areas.

ALICE WHITBY FOR THE WALL STREET JOURNAL (3)

MAKEUP MOGUL Laura Mercier’s condo asks $11.15 million M2

MILITARY LOANS VA mortgages are on the rise M3

FOCUS ON FOODIES Inside the Wild Rabbit, left, a Michelin-starred restaurant and inn in Kingham. Above, produce and cheese displays at Daylesford Organic Farmshop and Cafe.

BY RUTH BLOOMFIELD

HIP NEW GASTROPUBS in the British countryside and upscale artisanal food shops in rural villages are encour-

aging affluent urbanites to pay premium prices just to buy homes near them.

These businesses, with an emphasis on organic, sustainable, seasonal produce and gluten-free goodies are

creating fertile real-estate markets in their villages, where, in some cases, local property prices have increased by 10%, experts say.

The classic example of this is Daylesford, in Gloucester-

shire. The hamlet and neighboring village of Kingham have become ultra fashionable thanks to a single local business.

The woman behind Daylesford’s rise is Lady Carole

Bamford, the wife of industrialist Sir Anthony Bamford, chairman of JCB. The couple own a 1,500acre country estate in the area and in the late 1990s Please turn to page M4

SOLAR POWER Homes with optimal eclipse views M8

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M2 | Friday, July 21, 2017

THE WALL STREET JOURNAL.

NY

MANSION PRIVATE PROPERTIES | CANDACE TAYLOR

CLOCKWISE FROM TOP RIGHT: BOB FIKEJS; KRISTIN CHALMERS; ZIGNAVISUAL; H5 PROPERTY (2)

Makeup Maven Lists N.Y.C. Pad

SINGER NATASHA BEDINGFIELD ASKS $4.75 MILLION FOR LOS ANGELES HOME

Laura Mercier, creator of the eponymous cosmetics brand, is putting her downtown Manhattan condo on the market for $11.15 million.

The French makeup artist-turnedentrepreneur bought the two-bedroom condo at Chelsea’s Walker Tower for $5.9 million in 2013. The 16th-floor apartment measures about 2,150 square feet, said listing agent Vickey Barron of the Corcoran Group.

Walker Tower, completed in 1929, was an Art Deco office building before being converted to condos. Ms. Mercier said she was living in the neighborhood when construction on Walker Tower began, and she became “absolutely obsessed” with the building.

Ms. Mercier was one of the first buyers to sign a contract at Walker Tower, and said she got “a very good price,” as a result.

Ms. Mercier, 58, said she is returning to France to focus on expanding her brand in Europe. For the past few years, she has divided her time between New York and Paris, but she now plans to spend most of her time in France, where she has a home in Paris and two in her native Provence.

(One of her homes in Provence, an 18th-century castle, is on the market for €3.5 million.) She said she will

Singer-songwriter Natasha Bedingfield is trying again to sell one of her Los Angeles homes—this time with a higher price.

The “Pocketful of Sunshine” singer is putting her modern house in Los Feliz back on the market for $4.75 million. She previously listed it in 2014 for $3.75 million. Ms. Bedingfield ended up renting out the house rather than selling it, but the tenant has now moved out, according to Andrew Mortaza of the Agency, who has the listing with colleague Bryan Castaneda.

Ms. Bedingfield bought the house in 2009 for $2.3 million, according to public records. She and husband Matt Robinson now live in Hollywood, but kept this property as one of several homes they own in the area as investments, Mr. Mortaza said.

maintain a smaller place in New York as a pied-a-terre.

When she is in residence at Walker Tower, she said she uses a large white table in the living room, which has ample natural light through large windows, to apply makeup and test products.

“Matt and I have so much fun identifying great properties and then getting to share them with future owners,” Ms. Bedingfield said in an email.

Built in the 1950s, the fourbedroom house spans about 4,800 square feet, with several balconies and views of the Griffith Observatory.

There is a kitchenette and bar adjacent to the media room. Located in the gated community of Laughlin Park, the property also includes a guesthouse currently set up as a gym, an outdoor swimming pool and a built-in hot tub.

Mr. Mortaza said home values have increased in the neighborhood since the last time the home was on the market.

Known for hits like 2004’s “Unwritten,” Ms. Bedingfield recently finished touring with Train and O.A.R.

MIAMI HEAT’S TYLER JOHNSON PUTS PINECREST, FLA., HOME ON THE MARKET FOR $5.25 MILLION Sports run in the family for Miami Heat guard Tyler Johnson.

When the NBA player and his fiancée, Ashley Fletcher, bought a roughly 12,000-square-foot, Miami-area home last year, they planned to have his mother and younger brother move in with them. But his brother, Logan, is in the midst of being recruited by college basketball programs and decided to finish high school in their native California to avoid disrupting the process. So Mr. Johnson is putting the Miami house on the market for $5.25 million, less than a year after he bought it, and will look for a smaller home in the area.

“There were going to be more people in the house,” Mr. Johnson, 25, said by phone. Though they love the property, “it’s too big for our family size right now,” Ms. Fletcher added.

The couple have a three-year-old son and another baby on the way.

Mr. Johnson bought the house last

year for $4.82 million, shortly after he made headlines by signing a $50 million contract with the Miami Heat.

The team had matched an offer from the Brooklyn Nets.

The Mediterranean-style house is located in the village of Pinecrest, an affluent Miami suburb. Built in 2009, it has six bedrooms plus an office and spans about 12,000 square feet, said listing agent Kimberly Knausz of ONE Sotheby’s International Realty. The house has two kitchens inside—the main kitchen and a chef’s kitchen behind it—and a covered summer kitchen outside with a grill, refrigerator and sink. There is also an elevator, a game room with a bar and a home theater. “It’s a great house for entertaining,” said Ms. Fletcher, noting that Mr. Johnson’s teammates are frequent guests at the house. Mr. Johnson said they recently hosted a birthday party for a friend’s son with a waterslide, carnival games and a pet-

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ting zoo.

The couple said their favorite feature of the roughly 1-acre estate was probably the grounds, which include a heated swimming pool, built-in hot tub, and pool house.

“We love our big backyard,” Ms. Fletcher said.

After buying the house, they made some improvements to the landscaping, added an in-ground trampoline and a playground. They also revamped the existing half-basketball court, giving it a Fresno State logo in homage to their alma mater. “That’s really fun for us,” Ms. Fletcher said.

Mr. Johnson said he uses the court three or four times a week.

Ms. Knausz said the luxury market in the area has increased in value since Mr. Johnson bought the house.

See more photos of notable homes at WSJ.com/Mansion.

Email: privateproperties@wsj.com

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THE WALL STREET JOURNAL.

Friday, July 21, 2017 | M3

MANSION JUMBO JUNGLE | ROBYN A. FRIEDMAN

A HELPING HAND FOR THE ARMED SERVICES A record number of veterans and members of the armed services are getting VA loans—mortgages guaranteed by the Department of Veterans Affairs that come with a number of benefits.

Some VA loans require no money down, have no mortgage-insurance payments and can have lower interest rates and closing costs than conventional mortgages.

The VA guaranteed 705,474 loans—including jumbo mortgages—in fiscal year 2016, which runs from Oct. 1 through Sept. 30, an increase of nearly 12% over the same period in 2015. The total loan amount guaranteed: $179 billion, according to the Department of Veterans Affairs.

The VA doesn’t provide the financing—banks and other lenders do. But the VA’s guaranty program helps protect lenders from loss if the borrower fails to repay the loan. VA Loans have a lower delinquency rate than conventional loans: 3.9% in the first quarter of 2017, compared with 4.04% for conventional mortgages, according to the Mortgage Bankers Association.

“Veterans often have more discipline, and because they’re exercising a benefit from their time and service, they feel an obligation to make sure that they make their payments,” says Bill Banfield, executive vice president of capital markets for Quicken Loans in Detroit.

But like the military itself,

VA loans come with lots of rules. To be eligible, service members must be on active duty or discharged or released from active duty under other than dishonorable conditions. They must also have served for a minimum amount of time, which varies.

The ability to finance a home with no money down is perhaps the biggest advantage of the VA program.

The amount, if any, that a veteran needs for a down payment depends on the Federal Housing Finance Agency’s maximum loan limits for the county in which the property is located. For a lender that plans to sell a loan on the secondary market, a veteran must have a minimum of 25% “skin in the game” through a combination of equity and the VA guarantee, which is 25% of the county limit for a conforming loan.

For example, if an eligible veteran is creditworthy and purchases a home for $600,000 in San Francisco, no down payment is required because the maximum limit for a conforming loan there is $636,150 and the VA guarantee of $159,037.59 is sufficient to satisfy the 25% requirement.

For jumbo loans over the county limit, a borrower would be required to post a down payment of 25% of the difference between the purchase price and the county loan limit. For example, if a veteran wants to purchase a home in San Francisco for $750,000, the required down payment would be $28,463 ($750,000 — $636,150 = $113,850 x 25%). That’s only about 3.8% of the purchase

CHRIS GASH

A record number of VA loans were issued in 2016, many with no down payments, as well as lower interest rates and closing costs

price—far lower than the percentage most nonveterans would pay.

Lenders that offer VA loans can impose additional underwriting requirements, says Mark Garces, assistant vice president of secondary marketing for USAA Bank.

USAA, for example, requires a minimum credit score of 620 for its VA loans, including VA jumbo loans.

Here are a few things to consider if you’re planning to apply for a VA mortgage.

• Funding fee. While VA loans don’t require private mortgage insurance, they do come with a funding fee, which varies between 1.25% and 3.3%. This amount can be rolled into the loan and covered by the monthly payment.

• Compare VA and conventional loans. Just because you’re a veteran doesn’t necessarily mean that a VA loan is the best option.

While interest rates for a jumbo VA mortgage and a conventional jumbo are often

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comparable, the funding fee can make a VA loan pricier.

Borrowers might be able to save significantly on higher loan amounts by choosing a non-VA jumbo loan product if they have funds sufficient to make the 20% down payment.

• Remember that the VA does refinances, too. Veterans should consider refinancing through the VA’s Interest Rate Reduction Refinance Loan program.

“It’s a streamlined loan,” says Mat Ishbia, president

and chief executive officer of United Wholesale Mortgage, a wholesale mortgage lender in Troy, Mich. “If you’ve been making your payments every month but the rates have dropped, you can lower your rate and your payment with less documentation.”

For those with existing VA loans, IRRRLs require no appraisal and typically have lower closing costs and paperwork than refinances of conventional and jumbo loans.

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M4 | Friday, July 21, 2017

NY

THE WALL STREET JOURNAL.

ALICE WHITBY FOR THE WALL STREET JOURNAL

MANSION

GOING LOCAL Inside Daylesford Organic Farmshop and Cafe, credited with hiking house prices in neighboring villages and inspiring other village stores that focus on locally grown and raised food.

VILLAGES DANGLE AN ORGANIC CARROT tus in the last few years,” said Mr. Morgan. “When we do have something for sale there, it flies off the shelf.”

Daylesford and Kingham have advantages beyond proximity to Lady Bamford’s store. Both villages are located about 90 miles outside of London—a manageable weekend commute and popular with celebrities. The former Blur bassist Alex James

owns a farm just outside Kingham and hosts an annual music and food festival, the Big Feastival.

The beautiful countryside is dotted with period properties. Knight Frank is currently listing a stone manor house in nearby Maugersbury for £1.95 million, or $2.55 million. The 9,505-squarefoot house comes with almost 2 acres of land.

The “Daylesford Effect” is spreading. “More recently we have seen a reinvigoration of the local pub in the surrounding areas, where in many, food has taken center stage,” Lady Bamford said in a written response.

This spread has reached as far as the county of Wiltshire, where the Swedish owner of the H&M fashion brand, Stefan Persson, owns a country estate near Ramsbury, 70 miles from London.

He also owns the local pub— the Bell. “He has totally revamped that pub,” said buying agent Charlie Wells, managing director of Prime Purchase.

In the village of Kersey, located in Suffolk, a rural county 80 miles east of London, buyers pay an estimated 10% premium on properties like Bridge House, a pink-painted five-bedroom historic home right in the center of the village, which is listed with Savills with a guide price of $1.17 million.

Caroline Edwards, a partner at Carter Jonas estate agents, said that four years ago, the village’s “pretty average” pub, the Bell Inn, was bought by sisters Wendy Green and Janet Woolard.

The venue was previously slightly frosty to wealthy incoming urban types, Ms. Edwards said, but is now a “completely inclusive” spot, welcoming London hedgefund managers and local farm laborers alike. “It has become a real heart of the local community,” she said.

She is convinced the warm welcome at the Bell has boosted prices in Kersey at a time when the rural market in Britain is flailing.

In 2014, the British government increased stampduty costs on homes worth roughly $2 million or more.

In 2016 it imposed a 3% stamp-duty surcharge on second homes. What this means is that anyone spending about $2 million on a second home in the country will pay about $122,850 in taxes, an increase that has shaken the prime rural market.

And businesses like Daylesford and the Bell are also bucking a trend which is see-

ing traditional pubs and village stores—selling basic groceries—close amid online competition and changing lifestyles. According to the advocacy group Campaign for Real Ale, 21 British pubs close for good every week.

In the face of these closures an increasing number of local communities are coming together to save local businesses.

Mr. Wells cites the example of the Queens Arms in East Garston, Berkshire. “The pub was facing closure three or four years ago until it was bought by a couple of local residents who wanted to keep a pub in the village,” he said.

“What was in effect a community buyout has resulted in a great success story.”

A similar community effort helped open a not-forprofit shop in the village of Lodsworth in West Sussex.

The Lodsworth Larder opened in 2009, with a strong emphasis on organic, sustainable, seasonal produce (plus a gluten-free range). Most of its produce is supplied by small local businesses, and it is squarely aimed at affluent locals, many of whom commute the 50 miles to central London.

Philip Harvey, managing partner at Property Vision, said the shop has elevated Lodsworth above surrounding villages. Properties, as a result, are 10% more expensive, he estimated.

For Lindsay Cuthill, head of Savills’ country department, the premium pricing makes sense. “If you had a choice between living in a village which had a nice pub or shop and one which did not, you would choose the one with,” he said. “Ergo prices go up.”

Rural Outposts

MARCHAND PETIT

Parker’s country department.

Today the Daylesford brand has four shops, a spa, a Michelin-starred country pub and culinary school.

Mr. Morgan says the enterprise has had a transformative effect on Daylesford and Kingham, where properties now carry a price premium of 10%. “Villages like Kingham have been upgraded to super-village sta-

$3.23 million

Newton Ferrers, Devon Five bedrooms, four bathrooms This 4,300-square-foot house has views of the River Yeald. The local community worked to save the post office and shop, which now sells artisanal bread and crafts, alongside everyday essentials.

Agent: Marchand Petit

CARTER JONAS

Continued from page M1 Lady Bamford developed an interest in organic food and traditional farming methods.

In 2002 she opened a stylish farm store and cafe she named Daylesford Organics.

The venture drew Londoners like bees to honey. “They want somewhere to go where they can get their skinny latte,” explained Luke Morgan, a partner at Strutt &

$1.44 million

Ramsbury, Wiltshire Five bedrooms, three bathrooms The 3,065-square-foot White House Cottage was built in 1652 and has a thatched roof. It is located the village, where the local pub is owned by H&M boss Stefan Persson.

Agent: Carter Jonas

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THE WALL STREET JOURNAL.

Friday, July 21, 2017 | M5

NY

MANSION FIELD DAY Dan Barber, left, at his Blue Hill at Stone Barns restaurant in Pocantico Hills, N.Y., and, below, on his family’s Blue Hill Farm in Great Barrington, Mass., around 1978.

HOUSE CALL | DAN BARBER

MATT FURMAN FOR THE WALL STREET JOURNAL; DAN BARBER (HISTORICAL)

A Dream Sprouts On Grandma’s Farm

The award-winning chef found his calling after events led his family to a spread in the Berkshires; David Rockefeller’s real-estate offer

When I was little, I didn’t like mixing the fruit at the bottom of yogurt containers. I only wanted the jelly. So I choked down the plain yogurt as fast as I could. I never thought to just remove it. I had to pay my dues.

I grew up in an apartment building on 96th Street off Madison Avenue in Manhattan. My father, Fred Lee, was a businessman who worked in the toy industry.

We lived on the fourth floor in a two-bedroom apartment with a maid’s room. My half-sister, Carolyn, from my mother’s first marriage, was 12 years older than me. She had the maid’s room. My older brother, David, and I shared a bedroom.

I don’t have many memories of my mother, Joan. She died of breast cancer when I was 4. She hated to be photographed, so I don’t have many images of her, either.

From the time I was little, my father took David and me to spend our summer vacations at my ma-

ternal grandmother’s farm in Great Barrington, Mass. In my teens, I went there to work the farm.

Ann, as my grandmother liked to be called by us, didn’t talk much about my mom. No one in my family really did. Back then cancer was taboo. Which is why the Berkshires took on a certain importance for me and the rest of my family.

Ann liked to tell the story of how she came to own the farm.

She had married a wealthy guy who started Strauss pens. At the time, they lived in Great Barrington, and Ann loved heading off to climb a hill a short distance from their house. At the top was a panoramic view of southern Berk-

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shire County along with a dairy farm known locally as Blue Hill Farm. Two brothers ran the farm, which had been in their family for generations.

Ann said she occasionally asked them if they’d be willing to sell.

They always laughed politely, which meant “not a chance.” Then one day, up on the hill, Ann was approached by one of the brothers.

He said he had a terrible fight with his brother and that if she still wanted to buy the farm, they’d sell it to her that day. “Otherwise,” he said, “we’ll wind up killing each other.”

Ann bought the 700 acres on the spot. She didn’t even know where the property began and ended, just that it was special.

Years later, she and her husband divorced. My sense is she didn’t get much in the settlement, but she had the farm.

When I worked up there in my teens, Ann’s farm had a huge vegetable garden that someone tended for her. She also had pasture and

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40 head of grazing cattle that belonged to a neighbor.

The family inherited the farm when Ann died in 1982.

After high school, I studied political science and English at Tufts University. But when I graduated in ’92, I was lost. So I headed to Los Angeles to bake bread at a well-known bakery. I had this hair-brained idea that I’d bake at night and write the great American novel during the day. One evening I forgot to salt 1,200 pounds of rosemary dough and was fired.

Over the next decade, I worked in kitchens in France, California and New York. For the most part, I was thinking of that time as researching material for my writing.

By then I was living in Greenwich Village and cooking at various restaurants. From time to

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time, I visited a restaurant in an old brownstone. One day, I asked the owner if he might want to sell.

He’d always laugh, saying the place was his dream. Then one day he said, “I’m selling.” It was as if I was re-living Ann’s experience.

Together with my brother, David, and sister-in-law, Laureen, we decided to take it over. Laureen had the idea to name the new place Blue Hill as an ode to Ann’s farm. The year we opened, David Rockefeller came in to eat. He enjoyed his meal, but more than that I think he was impressed that the restaurant was a family business with ties to a farm. As a boy, he had to milk cows before church on Sundays with his brothers and sisters at their estate in Pocantico Hills, N.Y. His family wanted them to be connected to the land.

In 2004, Mr. Rockefeller invited us to open a restaurant in the stone milk barns on his family’s estate. We soon opened Blue Hill at Stone Barns.

Today, my wife, Aria, and I live with our two daughters in a brownstone in Manhattan’s West Village.

We visit Ann’s farm when we can. The cows provide much of the dairy for our restaurants.

Recently, I was at the farm with my daughter, Edith, when the landscape and late-afternoon light caught me. It was the same beautiful view Ann had wanted to preserve for my mother, and here it was for my daughter.

— As told to Marc Myers

Dan Barber, 47, is an award-winning chef and the co-owner of Blue Hill restaurant in Manhattan and Blue Hill at Stone Barns in Pocantico Hills, N.Y. He is the author of “The Third Plate: Field Notes on the Future of Food” (Penguin).

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LAWRENCEVILLE, NJ A 2-story, 4BR Tudor w/ fin. bsmnt, back yard w/ 2-level deck & hot tub, kit., brkfst rm & FR w/ FP, plus master BR w/ balcony. $730,000 Fred Gomberg – 609-841-0234 (cell) Princeton Office – 609-921-1900

LITTLE SILVER, NJ Custom built in 2010 on 1.5 acres w/views of the Shrewsbury River. New deep water dock w/boat ramp.

Home is not in a flood zone! $1,799,000 Thomas Connors – 732-673-2836 (cell) Holmdel Office –732-946-9400

SHORT HILLS, NJ

PARAMUS, NJ Sophisticated dream home! 10,800 sqf estate is located on a 2-acre meticulously maintained property, 6 BRs w/5 full- & 2 half- BAs. $2,900,000 Chris Crawford – 201-562-7408 (cell) Ridgewood Office – 201-445-9500

SHORT HILLS, NJ Center hall Colonial, 6,900 sq ft. Gourmet EIK opens to FR with access to level back yard w/ a bluestone patio. MBR suite w/cathedral ceiling. $1,995,000 Arlene Gonnella – 201-306-1357 (cell) Short Hills Office – 973-376-4545 ext. 7576

This Stunning historic Hartshorn was built in 1882 and has been beautifully renovated to perfection with a gorgeous gourmet eatin kitchen with a breakfast room that has incredible natural light. Features all new windows, an incredible lower level with a second kitchen, recreation room and exercise room. Ideally located on .7 acres of gorgeous property near the train station and top-ranked Hartshorn Elementary School! $2,250,000

Arlene Gonnella – 201-306-1357 (cell) Short Hills Office – 973-376-4545 ext. 7576

SHORT HILLS, NJ Stone & stucco 7BR, 5.1BA, 7,460 sq ft home, with every inch totally renovated! .94 acre level lot is near the train station. $2,275,000 Arlene Gonnella – 201-306-1357 (cell) Short Hills Office – 973-376-4545 ext. 7576

WARREN, NJ This superior 2014 new construction home is situated on 1.5 acres. Perfect floor plan and outstanding finishes throughout. Desirable cul-de-sac. $2,379,000 Dianne White – 973-723-9802 (cell) Short Hills Office – 973-376-4545

These homes are just the beginning of all you’ll find on Weichert.com.

R E A L T O R S

®

PRINCETON, NJ This colonial with classic lines, understated elegance and architectural integrity is complemented by a rustic setting on two acres. $1,990,000 Beatrice Bloom – 609-577-2989 (cell) Princeton Office – 609-921-1900

WESTFIELD, NJ Live the dream! Better than new Victorian featuring all modern amenities, a carriage house, a chef’s kitchen, pool and low taxes. $1,550,000 Steven Finter – 908-723-4683 (cell) Westfield Office – 908-654-7777

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THE WALL STREET JOURNAL.

M6 | Friday, July 21, 2017

ADVERTISEMENT

KIAWAH ISLAND, SOUTH CAROLINA

BONITA SPRINGS, FLORIDA

BOCA/DELRAY BEACH, FLORIDA

With 4,560 square feet, 5 bedrooms and 5 ½ bathrooms, 21 Blue Heron Pond Road enjoys privacy and gorgeous tidal pond views from nearly every room. Inside, the open, coastal rooms are filled with light; outside, you’ll find 1,700 square feet of superb outdoor living spaces, including an infinity pool. A Kiawah Island Club Membership is available with this home.

Florida’s Ultimate 55+ Lifestyle - There is a new standard of living on Florida’s beautiful Gulf Coast. Valencia Bonita offers an exciting vacationinspired lifestyle that rivals the finest resorts. Featuring a 45,000 sq. ft. clubhouse with world-class amenities and elegant single-family and villa home designs for every taste.

Incredible opportunity at Seven Bridges - brand new homes in a highly amenitized non-golf community in the Boca Raton / Delray Beach area.

Generous features include impact glass, marble countertops, gourmet kitchens and 30,000 sq. ft. club. Low HOA fees, close to world-class shopping, great schools. Inquire today!

$3,850,000

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ORLANDO, FLORIDA

WHITETAIL CLUB - MCCALL, IDAHO

DOWNTOWN ST. PETERSBURG FLORIDA

Twin Lakes is now selling homes from the $200s in the Orlando Area. Here residents will enjoy a magnificent 20,000 sq. ft. clubhouse with amenities that are usually reserved for fine resorts. The outstanding views and location are only surpassed by our cutting edge home styles and luxurious included features that are an upgrade to other builders. Twin Lakes is a 55+ Active Lifestyle Community.

The Shore Lodge Cottages at Whitetail Club. Four spectacular cottage models ranging in size from 1369–2490 sq. ft. plus 1-car & 1 cart garage.

The ultimate weekend getaway. The lakefront clubhouse, the single-track mountain bike trail system, Nordic ski trails, indoor tennis & fitness center, & the championship golf course are all outside your doorstep.

Live a fabulous Urban Lifestyle in vibrant downtown St. Petersburg. 3 blocks from the water, artfully designed townhomes now under construction on a private, gated lane. Totaling 2,335 sq. ft., 3 bedrooms, 3 ½ baths, 2 car garage, private elevator, and amazing rooftop terrace. Low HOA fees.

Walking distance to world-class restaurants, museums, shopping, parks, marina, and Tampa Bay.

From the $200s

Priced from $689,000 - $889,000

From the $800’s to $900’s

info@kiawahisland.com

TwinLakesFL.com

WhitetailClub.com

www.RegentLane.com

Twin Lakes

Whitetail Club Realty, LLC. Joe Carter

NJR Property Investments LLC

phone: 407.499.8865

phone: 877.634.1725

phone: 727.515.5556 email: natalie@njrdevelopment.com

GUILFORD, CONNECTICUT

AUSTIN, TEXAS

AUSTIN, TEXAS

Luxury Residences, CT “Project of the Year” by HBRA. On 16 acres, 1884 Mill has loft units with garages. Added new construction of (3) 4-story buildings with ranch units, underground parking, views of Long Island Sound, West River, marsh. Walk to the Historic Town Green, shops, restaurants, train station, marina and beach. Proposed pool/clubhouse.

Your Ultimate Hideaway Awaits. This 5 bed/4.5 bath custom home is a contemporary & edgy approach to a traditional farmhouse in a private, gated community with direct access to Lake Travis. Luxury home features include chef’s kitchen, three living areas, butler’s pantry, oversized pool/spa with outdoor living & dining, and one-of-a-kind bunk room.

Your Ultimate Escape Awaits. Look no further than this custom lakeside home with privacy gate & direct Lake Travis access. This contemporary home boasts 5-bedrooms & 360-degree views of the lake & surrounding hills. Luxury home features include a Master-Suite wing with study, gourmet kitchen, over 800 sqft of outdoor living, & an oversized pool with waterfall.

Priced from $719,000

$1,800,000

$2,850,000

www.66highst.com

Email: jcarter@whitetailclub.com

PeninsulaLakeTravis.com

PeninsulaLakeTravis.com

William Pitt Sotheby’s Nikki Travaglino

The Peninsula at Rough Hollow Loren Dickey

The Peninsula at Rough Hollow Loren Dickey

phone: 203.415.3053

phone: 512.456.3756

phone: 512.456.3756

AUSTIN, TEXAS

AUSTIN, TEXAS

NAPLES, FLORIDA

Your Ultimate Retreat Awaits. Located in a private, lakeside community, this extravagant 4 bed/4+ bath home features cutting-edge design & smart home conveniences. Custom home features include a gourmet kitchen, full bar, outdoor kitchen & living with fireplace, pool/spa with swim-up bar, master steam room & dry sauna, and a 2-story “Hers” closet.

Your Ultimate Farmhouse Awaits. This spacious one-story is situated on a 1+ acre lot in a private, gated community on the Lake Travis shoreline.

Boasting 3 bedrooms plus casita, 4.5 bathrooms, exquisite pool/spa, outdoor kitchen & high-tech conveniences, this home blends the comfort of the Texas Hill Country with the sophistication of a custom home.

Minto Single-Family Estate Homes located in an area famous for extraordinary golf communities. TwinEagles boasts not just one championship course awarded “Best New Private Course in America” by Golf Magazine, but two 18-hole, tour-quality courses and a spectacular 47,000 sq. ft. country club lavished with every imaginable amenity. Best of all, golf membership initiation fee is included with every Minto new home purchase.

$2,995,000

$1,690,000

From the mid $500s to over $1 million

PeninsulaLakeTravis.com

Loren@RoughHollowLakeway.com

PeninsulaLakeTravis.com

Loren@RoughHollowLakeway.com

The Peninsula at Rough Hollow Loren Dickey

The Peninsula at Rough Hollow Loren Dickey

Minto Communities

phone: 512.456.3756

phone: 512.456.3756

phone: 888.379.9868

Loren@RoughHollowLakeway.com

Loren@RoughHollowLakeway.com

To Advertise Call: 800-366-3975

MintoUSA.com

THE WALL STREET JOURNAL.

Friday, July 21, 2017 | M7

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THE WALL STREET JOURNAL.

M8 | Friday, July 21, 2017

MANSION RELATIVE VALUES

HOMES IN THE PATH OF THE SOLAR ECLIPSE Properties for sale in Missouri, Georgia and South Carolina that are in the area set to experience the Aug. 21 event

$1.85 million

Columbia, Mo. Five bedrooms, 5½ baths This 6,008-square-foot, three-level home was custom-built in 2013 by Mike Tompkins on 11.42 acres. Interior features include a gym and a great room with fireplace. Another fireplace is in a screened patio. The property also has an unfinished carriage house, and a pool with hot tub and firepit. It is at the end of a ½mile-long private road. Agent: Chris Boatright, Weichert Realtors

$3.59 million

Clayton, Ga. Seven bedrooms, five bathrooms, four half-baths The French château-style home, called Windrush, is 7,040 square feet on more than 2.6 acres. The three-level home has living areas that open onto covered terraces. The property, on Lake Burton, has a boat house with hoists and deep-water dock. There is a guest suite over a three-car garage. Agents: Ann Hopkins and Dabney Jordan, Atlanta Fine Homes Sothebyâ&#x20AC;&#x2122;s International Realty

$5.75 million

Charleston, S.C. Three bedrooms, 3½ baths The roughly 4,160-square-foot, three-story Inglis Arch House is a restored 1787 home on about Ÿ acre. It has six fireplaces, including three in separate dining areas. An elevator leads to a rooftop deck with views of Cooper River and Fort Sumter. A one-bedroom carriage house, about 2,310 square feet, overlooks three gardens and a pool. Agent: Debbie Fisher, Handsome Properties

FROM LEFT: JET STREAK PHOTOGRAPHY (2); CHRIS & TIFFANY NELMS/VSI GROUP (2); CASSANDRA MICHELLE PHOTOGRAPHY (2)

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ILLINOIS

ENGAGE 8,163,000

AFFLUENT READERS WITH A HOUSEHOLD NET WORTH OF $1M+

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THE WALL STREET JOURNAL.

Friday, July 21, 2017 | M9

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THE WALL STREET JOURNAL.

M10 | Friday, July 21, 2017

MANSION

HUNT AND GATHER The trophy room in the South Texas ranch, above, is a gathering spot for friends and family. Below from left, a closet full of Mr. Gordy’s camouflage clothing; his study with some of his gun collection; a staircase decorated with shed antlers collected on the South Texas property.

JANIE OSBORNE FOR THE WALL STREET JOURNAL

ON LINE The Montana compound is surrounded by man-made ponds and streams stocked with trout.

REBECCA STUMPF FOR THE WALL STREET JOURNAL (2)

Continued from page M1 by season.

His Double Arrow ranch—a 48,000-acre spread outside Livingston, Mont.—cost him more than $45 million. Mr. Gordy pointed out some landmarks while driving his all-terrain vehicle.

“This is the Yellowstone River, my boundary line,” he said, as herds of antelope sprinted past. He pointed to hot springs puffing out white steam, an old homesteader’s cabin deep in a forest grove, and a mountain ridge with two towering rock cairns—so-called sheepherders’ monuments—built in the 19th century. The ranch ends somewhere up in the Crazy Mountains, an island mountain range spanning 40 miles of the northern Rockies.

Mr. Gordy, who presides over a Houston-based conglomerate of privately held partnerships that include energy, mineral and real-estate development businesses, bought his ranches through his family-owned Rock Creek Ranch limited partnership.

Occasionally, he loses track of just how many he owns. The Montana ranch, for example, is an aggregate of 10 individual ranches.

His Wyoming ranch has grown from its original 50,000 acres, purchased in 1993 for $5 million, to nearly 80,000 acres as he bought up neighboring ranches and parcels—at a total cost of $23 million.

“If the old families want to sell, most of them call me first,” Mr. Gordy said. He also owns two ski homes in Utah’s Deer Valley and an oceanfront retreat in the Bahamas, which he bought and redecorated as a surprise 60th birthday gift to his wife, Glenda, in 2011.

The son of a Houston policeman and an office cleaner, Mr. Gordy traces his love for land back to his grandparents’ 40-acre farm in Louisiana, where he learned to hunt and fish. “They kept me from becoming a juvenile delinquent,” said Mr. Gordy. He honed his marksmanship shooting wasps with his BB gun, while mooning over the hunting guns in his grandmother’s Sears, Roebuck catalog. He now owns a museum-worthy collection of rare and antique rifles, guns and pistols.

After working his way through college with stints as a garbage collector, a truck-loader and a roustabout, Mr. Gordy went to work in the oil industry. In 1981, he cofounded a small gas and oil exploration company, then sold the majority of it in 1985, before oil prices collapsed. “My grandfather used to say, ‘If you give anybody luck, s— will do for brains,’” he said.

Mr. Gordy bought up more oil fields while prices were low, then expanded into coal-bed methane drilling and minerals exploration.

He formed a new company, RGGS Land & Minerals, when he acquired mineral rights from U.S. Steel in 2004—a deal that gave him control over the mineral rights to 1.5 million acres, he said.

This spring, Mr. Gordy made his first foray into retail, opening Gordy & Sons Outfitters, a highprice hunting and fly-fishing store in Houston, with his sons Shaun and Garrett. Patrons can shop for handcrafted British Purdey guns, and try out rods at a casting pond stocked with imported Amazonian peacock bass.

He also has moved into real-estate development with Buffalo Heights, a 4.8-acre mixed-use complex with an upscale grocery, offices and luxury apartments, now under construction in Houston. It is the first phase of development of a 23-acre site he owns.

Mr. Gordy’s first ranch purchase was a 113-acre parcel in East Texas, which he bought in 1982 for $78,000. “We were so excited—it felt like it was just miles,” said Ms. Gordy, a petite 65-year-old who works out with a punching bag.

For years, the family stayed in a barn without electricity or running water, cooking on a woodstove and sleeping on mattresses on the floor, until a woodrat ran over Ms. Gordy’s bed one night. She refused to return until her husband built a cabin with a bathroom.

The East Texas ranch has since expanded to about 8,000 acres, at a total cost of about $10 million. Mr. Gordy, now negotiating for an additional 800 acres there, is transforming it into a quail plantation.

He owns a larger ranch in southwest Texas called La Ceniza, a 19,000-acre spread he acquired in several chunks between 1998 and 2002 for about $18 million. Mr. Gordy built a $5 million haciendastyle manse there in 2004 as a hunting retreat for friends and fam-

AMY MIKLER FOR THE WALL STREET JOURNAL (4)

THE RANCH COLLECTOR

IN THE SADDLE Glenda Gordy and one of about 130 quarter horses on the family’s Wyoming ranch; a view of the property from Mr. Gordy’s helicopter. ily. “Every time I’d come up with a plan, he’d want it bigger,” said Ms. Gordy, who designed the 15,000square-foot house with a builder.

Its centerpiece is a large trophy room with a big stone fireplace, game tables, a jukebox and a saloon-style bar. “South Texas is a hunting paradise,” said Mr. Gordy, who hunts quail, doves, wild pigs and deer there.

Mr. Gordy’s biggest ranch is his nearly 80,000-acre property on Wyoming’s North Platte River— with red stone buttes, mountains and lakes, and a 45-foot waterfall cascading down a box canyon.

“There are six waterfalls on the ranch, but three are more slip ’n’ slides,” said Mr. Gordy, jumping in his helicopter to tour the property.

“We could take a four-wheeler,” he explains, “but to go all around the ranch would take a day, at least.”

Wyoming is a working ranch— as are all his ranches—where he

raises Black Angus cattle and quarter horses. He and his family take part in cattle branding and threeday cattle drives to the mountains.

He also likes to hunt Hungarian partridge, bow-hunt for elk and fly-fish there and on his Montana ranch, where he sometimes takes friends to remote trout streams by helicopter.

“If it wasn’t a large property, Russell wasn’t interested in buying it,” said Dave Palmerlee, a Wyoming-based buyer broker and attorney, who represented Mr. Gordy in the acquisition of the Montana ranch in 2002, negotiating with seven ranch families who had been there for generations. (Mr. Gordy has since bought three more.)

Unlike many big ranches, which contain or encompass state-leased or federal land, there was very little public land involved—a key issue for Mr. Gordy, who values privacy. “I like people—I just don’t

want to be around them,” he said.

The Gordys built a $15 million family compound in Montana in 2014, with a 13,000-square-foot main lodge designed by Locati Architects that overlooks the Absaroka Mountains. There are two adjoining homes for the Gordys’ sons and their families.

The ranch house is both rustic and grand, with walls of Montana moss rock, reclaimed old timbers, and high stenciled ceilings. The butler’s pantry is made out of an old homesteader’s cabin. Man-made ponds and streams are stocked with trout. A glass passageway to the master suite was designed so the couple’s three grandchildren could watch the fish. There is also a stone heliport, an aircraft hangar and two big garages for “the toys,” including a Polaris Slingshot—a three-wheeled motorcycle—and numerous all-terrain vehicles.

Mr. Gordy’s business interests

and his love for land have at times come into conflict. In 2013, his RGGS Land & Minerals issued a lease to a mining company to extract iron ore from a section of northern Wisconsin’s scenic Penokee Range. The prospect of an open-pit mine amid the hills, forest and trout streams outraged local residents, environmentalists and Native American tribes. Plans were eventually shelved—due to a decline in iron ore prices, according to Mr. Gordy.

“The land is beautiful,” he said.

“The Nature Conservancy would like to buy it, but I’ve probably got $2 [billion] to $3 billion in ironore royalties in it; what are you going to do?”

Mr. Gordy said he has toyed with the idea of turning the Penokee land into a commercial birdhunting retreat, stocked with woodcocks and grouse.

“It wouldn’t make money,” he said. “But it would be fun.”