Trump Faces Missile Test: What's News

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Romanian Demonstrators Show Their Colors

Flynn’s
What’s Position
News Grows
Business & Finance
nvestors are taking a

Tenuous
I sober look at Snap
ahead of its IPO pitch. WASHINGTON—The White
Among their concerns are House is reviewing whether to
a slowdown in daily user retain National Security Adviser
growth and competition Mike Flynn amid a furor over
from Facebook. A1 his contacts with Russian offi-
cials before President Donald
Verizon will start sell-
Trump took office, an adminis-
ing unlimited-data plans
tration official said Sunday.
on Monday for the first
time since 2011, a sign of
intense competition. B1 By Carol E. Lee,
Shane Harris
VADIM GHIRDA/ASSOCIATED PRESS
Cyberattacks in Poland and Peter Nicholas

appear to be part of a global
effort targeting banks, hack- Mr. Flynn has apologized to
ing that shares traits with White House colleagues over
the 2014 Sony attack. B4 the episode, which has created
a rift with Vice President Mike
The Dow ETF has pulled
Pence and diverted attention
in $2.6 billion in new as-
from the administration’s mes-
sets so far this year, more
sage to Mr. Flynn’s own deal-
than any other U.S. stock
FLASH RALLY: Antigovernment protesters customize the flashes of their mobile phones to mimic Romania’s flag in Bucharest on Sunday. ings, the official said. “He’s
exchange-traded fund. B1
It was the 13th consecutive day a crowd had demanded the government’s resignation over changes to anticorruption legislation. A9 apologized to everyone,” the of-
The U.S. energy sector, ficial said of Mr. Flynn.
the market’s best-performing Mr. Trump’s views toward
Trump Faces Missile Test

in 2016, has cooled this year, the matter aren’t clear. In re-
due in part to overly optimis- cent days, he has privately told
tic crude-price forecasts. B10 people the controversy sur-
rounding Mr. Flynn is unwel-
Japanese firms are rais-
come, after he told reporters on
ing their profit forecasts as
Friday he would “look into” the
a weaker yen helps exports,
but many are wary about White House response By Peter Nicholas in
fenses and tough new cials consider a promising con- disclosures.
sanctions. A senior adminis- versation between Mr. Trump But Mr. Trump also has said
Trump’s trade policies. B3 to North Korea launch West Palm Beach, Fla., tration official said the White and President Xi Jinping of he has confidence in Mr. Flynn
Carol E. Lee in
Swiss voters rejected a over weekend could Washington and
House is unlikely to use au- China, which could prove a and wants to “keep moving
corporate-tax-overhaul plan thority it has to go after Chi- crucial partner in dealing with forward,” a person familiar
backed by the government set template Jonathan Cheng in nese companies that do busi- the threat from North Korea, with his thinking said. Close
due to concerns it was too Seoul ness with North Korea’s among other issues. Please see FLYNN page A4
generous to business. B3 President Donald Trump is weapons sector. The missile landed in the
facing calls for a show of a foreign leader and an awk- The launch was a potent Sea of Japan on Sunday in Travel ban hits doctor
Abby Joseph Cohen,
strength toward North Korea ward balancing act with China. and troubling reminder of Asia while Mr. Trump was programs...................................... A3
the longtime Goldman
after Pyongyang’s weekend U.S. lawmakers called for Pyongyang’s nuclear weapons Please see LAUNCH page A6 Mnuchin poised to secure
Sachs strategist known as
launch of a ballistic missile, military exercises with re- ambitions as well as the limits confirmation............................... A4
the “Prophet of Wall
posing the first major chal- gional allies, a rapid deploy- of U.S. options. It came days Trump backs off some early Trump tests technology
Street,” is retiring. B7
lenge to his administration by ment of regional missile de- after what White House offi- foreign-policy stances........... A6 industry......................................... B4
World-Wide
The White House is re-

viewing whether to retain
SPEED LIMITS AWAIT Gusher Turns to Trickle Performance
National Security Adviser

Flynn amid a furor over his
contacts with Russia be-
INFRASTRUCTURE SPREE 25%
20
S&P 500
energy
fore Trump took office. A1 sector
Trump is facing calls for 15
a show of strength toward Environmental, historical and other rules will likely delay Trump wish list
North Korea after its missile 10
launch, in the first major
BY DAVID HARRISON “I am totally for the national and state- S&P 500
challenge to his administra-
wide environmental laws,” said Hasan 5
tion by a foreign leader. A1
Almost sixty years ago, officials at Califor- Ikhrata, executive director of the Southern
Thousands were evacu- nia’s transportation department unveiled a California Association of Governments, who 0
ated in Northern Califor- plan to build a six-mile freeway extension in supports the extension project. Still, “some-
nia for fear of flooding as Los Angeles County. times it gets to be ridiculous.”
a reservoir spillway ap- They are still working on it. Many lawmakers and economists agree –5
peared close to failing. A3 During the 1960s, the road plan appeared with President Donald Trump that America 2016 2017
Through Feb. 10
on track. In the 1970s, new environmental needs to fix a backlog of infrastructure
Sessions has signaled Source: FactSet THE WALL STREET JOURNAL.
laws required voluminous studies and needs, which the Transportation Department
that the Justice Department
sparked legal fights between the neighboring pegs at $926 billion. There’s a similar agree- SLIPPERY: U.S. energy stocks, which outperformed the market in
may back away from an
towns of South Pasadena and Alhambra, ment that conservation and preservation 2016, have cooled, even as oil prices are holding their gains. B10
Obama initiative on trans-
which lie along its intended path. The project laws have helped mitigate damage on neigh-
gender bathroom use. A3
remains under review. Please see ROADS page A10
A Mexican leftist is wid-
ening his lead in polls
ahead of next year’s presi-
dential election, helped by
an anti-Trump backlash. A6
Bollywood’s Answer to India’s INSIDE
The Senate is expected Cash Mess: Boycott Money
to confirm Mnuchin as
i i i
Treasury secretary as soon
ASSOCIATED PRESS
as Monday night. A4
To some derision, stars are trying to do
GETTY IMAGES
A top Trump adviser

repeated unsubstantiated their part to tackle bill shortage
and widely discredited
claims of voter fraud. A4
Trump and Trudeau are
BY ERIC BELLMAN new economy,” goes the oath.
“We pledge to use less cash to
ADELE THE BIGGEST YALE’S
expected to discuss Nafta
during a visit Monday by
NEW DELHI—The commer- make it available to those more SWEEPS SURPRISES IN INCONSISTENT
the Canadian leader. A8
cial loops all day long on select needy in our villages.”
television channels throughout Since late last year, when In-
GRAMMYS RETIREMENT NAME-DROPPING
Died: Al Jarreau, 76, India. In it, dia’s govern-
Grammy-winning singer. A2 some of Bolly- ment voided LIFE & ARTS, A11 JOURNAL REPORT, R1 OPINION, A17
wood’s most its large-de-
CONTENTS Opinion.............. A15-17 glamorous nomination
Investors Seem Skeptical of Snap

Business News.. B3,7 Outlook....................... A2
Crossword.............. A14 Sports....................... A14 stars, looking currency notes
Heard on Street. B10 Technology............... B4 resplendent in in hopes of
Journal Report R1-10 U.S. News............. A2-4 evening wear, battling the ills
Life & Arts....... A11-13 Weather................... A14
Markets............... B9-10 World News....... A6-9
take turns in of tax evasion, BY CORRIE DRIEBUSCH Ahead of the company’s pitch have post-IPO.
front of the counterfeiting AND MAUREEN FARRELL for its initial public offering, It isn’t unusual for prospec-
camera sol- A new 2,000 rupee note and terrorism, which could value it at $25 bil- tive investors to try to find
> emnly promis- there has been Snap Inc., parent of the hot lion, investors are taking a so- faults with a company ahead of
ing to support what has be- a shortage of paper bills. The disappearing-message app ber look at the numbers. Among a deal, to evaluate their own in-
come the newest cause célèbre squeeze has been particularly Snapchat, has a lofty valuation, their concerns: a slowdown in terest or even push bankers to
among India’s elite. painful for the poor, who often hoards of coveted young users daily user growth, competitors lower the initial share price.
s Copyright 2017 Dow Jones &
They want rich people to don’t have bank accounts and and social cachet. It also has a such as Facebook Inc. and the On Snap’s side is scar-
Company. All Rights Reserved boycott money. until now have only ever been lot of Wall Street investors who implications of near-total con- city—2016 was the slowest year
“We are the soldiers of our Please see CASH page A10 aren’t buying the hype. trol that Snap’s founders will Please see SNAP page A2
A2 | Monday, February 13, 2017 THE WALL STREET JOURNAL.
U.S. NEWS
Trump’s Hard Line on Mexico Casts Shadow
P
resident Donald Mexico’s central bank has Some in Mexico’s export in- and telecommunications in-
Trump’s threats to re- Losing Currency raised interest rates six times dustries see a silver lining in dustry and successfully at-
write the North Ameri- Mexico’s peso has weakened sharply in recent years, limiting over the last year in response the fall of the peso, which has tracted billions in foreign in-
can Free Trade Agreement consumer purchasing power but making exports more competitive. to a weakening peso and con- lost 16% of its value against vestment, Mexico still faces
and build a wall at the U.S. cerns that its decline is push- the dollar since the beginning significant barriers and risks
southern border are causing a 10 How many Mexican pesos ing inflation higher. Econo- of May. Any border tax im- associated with relying more
reckoning for the Mexican U.S. dollar
one U.S. dollar buys*
buys mists at PNC Financial posed by the U.S., the thinking on its domestic market, in-
economy before a single ce- 12 Services Group warn that a goes, will be met with a deval- cluding high rates of orga-
ment block has been set or recession is likely in 2017. uation that will be more than nized crime, weak rule of law,
trade negotia- 14 Angst over the longer term enough to keep Mexican a lackluster education system
THE tion scheduled. is tied to Mexico’s dependence goods competitive. and political corruption.
16 June 2015: Mr. Trump announces
OUTLOOK Mexican out- on exports, which account for But the weak currency has
O
candidacy for the presidency
ROBBIE put growth is 18 a third of its economic activ- a downside: Annual inflation thers, including many
WHELAN projected to Dec. 2015: Fed raises interest rates ity. Some 80% of exports go to jumped to 4.72% last month, of Mexico’s top indus-
slow to a near 20 for first time in a decade the U.S. the highest in more than four trialists, believe the
halt in 2017, in- Nov. 2016: Mr. Trump is elected president “Any economy, in order to years. Rising inflation is likely country’s best chance is to di-
ward investment has tumbled, 22 be healthy, has to be based on to prompt the central bank to vert Mr. Trump’s attention to
the peso is down, interest Dec. 2016: Fed raises interest rates two engines of growth: the keep raising interest rates, China, with which the U.S. ran
rates and inflation are rising, 24 domestic market and the ex- which crimps domestic de- a trade deficit of $347 billion
and the nation’s business and 2011 ’12 ’13 ’14 ’15 ’16 ternal market,” said Economy mand. in goods alone last year.
political leaders are asking *Scale inverted to show weakening peso Minister Ildefonso Guajardo in One school of thought Eduardo Garza T. Fernán-
whether they need a new eco- Source:Tullett Prebon THE WALL STREET JOURNAL. an interview Tuesday in his holds that Mr. Trump’s pro- dez, president of Grupo Frisa
nomic model less dependent Mexico City office. “What do tectionist stance might be the Industrias, a steel maker that
upon their northern neighbor. mism among businesses. Cit- U.S. election. Since 1999, the you do to strengthen the ex- reality check Mexico needs to exported roughly half of its
Before the U.S. presidential ibanamex predicts gross fixed U.S. has accounted for 46% of ternal engine? You have to di- turn inward and invest in bol- $500 million in sales last year
election in November, Citiban- investment in Mexico will all foreign direct investment versify trade.” stering the domestic economy. to the U.S., says Mexican pro-
amex forecast that Mexico’s contract 0.8% this year, after in Mexico, according to Mex- Nafta’s critics south of the ducers should source more
T
gross domestic product would rising 4.6% in 2015. ico’s Economy Ministry. o that end, Mexico’s border point to the fact that from North America, rather
grow 2.3% in 2017. Since In the first nine months of “The key word for 2017 is leaders have recently Mexico’s annual GDP growth than Asia, to reduce the defi-
then the bank has twice low- 2016, foreign direct invest- uncertainty,” said Sergio sped up negotiations to since the deal took effect has cit and sidestep Mr. Trump’s
ered growth expectations, ment fell 24% compared with Luna, chief economist for Cit- expand trade deals with the averaged 2.6%, compared with ire. The idea is central to
first to 1.8% and more re- a year earlier, according to ibanamex. “Manufacturers are European Union and opened 4.2% during the previous two Mexico’s approach to renego-
cently to a paltry 1.2%, in part the Bank of Mexico, as busi- going to prefer to have more talks with Argentina and Bra- decades. Poverty levels have tiating Nafta. “Things are go-
because of uncertainty over nesses that rely on cross-bor- clarity before they make any zil about buying corn, wheat remained roughly the same as ing to be more expensive for
trade and investment rela- der commerce grew spooked investments.” and soybeans to ease depen- before the free-trade era. Mexican companies,” Mr.
tions with the U.S. by campaign criticism of free- Another drag on growth dence on U.S. grain—advanta- And despite recent reforms Garza said, “but there has to
Surveys show rising pessi- trade deals even before the has been higher interest rates: geous in case of a trade war. that opened up the energy be more integration.”
ECONOMIC CALENDAR
Federal Reserve Chairwoman head the Commerce Department sharply in December, and econo-
SNAP Will Snap Pop?
Snap’s slowing user growth has some investors wondering
if its post-IPO future will mirror Facebook or Twitter.
Janet Yellen will present the could come later in the week. mists are expecting industrial Continued from Page One 4Q 2016
Snapchat daily active users, quarterly average
Fed’s semiannual monetary re- TUESDAY: Ms. Yellen begins production to be flat and retail for U.S.-listed tech companies 158 million
port to the new Congress this two days of testimony in Con- sales to be up just 0.1% in Janu- since 2009 in terms of number 150 million users
week, while data on inflation, re- gress about monetary policy. She ary, largely as payback for the of deals and dollar volume, ac-
125
tail sales, industrial production could provide signals as to big increases the prior month. cording to Dealogic. That factor
and housing will provide clues on whether the Fed is seriously Also Wednesday, the U.K.’s alone could help support the 100
how the U.S. economy is re- considering a March interest- labor-market report could show shares in their debut.
sponding to the change in Wash- rate increase and whether offi- whether economic momentum Even Facebook, whose shares 75
ington. Also due are figures on cials’ economic outlook is set to there continues. The last report have soared in recent years, 50
U.K. unemployment and minutes improve. She also could face showed unemployment at a faced skepticism at the start. Its
from the European Central Bank. tough questions over the Fed’s more than 10-year low. shares fell below their offering 25
MONDAY: The Senate faces a regulatory regime, as Republi- THURSDAY: In the U.S., hous- price soon after they began 0
busy week as it considers eco- cans in Congress and the new ing starts are expected to have trading and only moved above it
nomic policy makers tapped by administration want to reign in been buffeted by competing more than a year later. 2014 ’15 ’16
President Donald Trump to join financial regulation. forces—stronger sentiment on Snap’s bankers now have to Performance since IPO
his administration. A confirma- WEDNESDAY: U.S. reports on the one hand, but higher interest persuade investors they Facebook Twitter
tion vote for Steven Mnuchin as January retail sales, consumer rates on the other. On balance, wouldn’t be buying into a fad. 250%
Treasury secretary is set for prices and industrial production most economists are expecting The roadshow could start as
200
Monday, while a committee are due to be released. Econo- housing starts to be slightly soon as Friday.
hearing for Labor Secretary nom- mists’ expectations are some- down. And the European Central Nearly a dozen fund manag- 150
S&P 500
inee Andrew Puzder and a con- what tempered. Both retail sales Bank releases accounts of its ers and analysts across the U.S., 100
(Since May 17, 2012)
firmation vote for Wilbur Ross to and industrial production rose Jan. 18-19 policy meeting. including several who focus spe- 50
cifically on tech, say they found 0
Snap’s regulatory filing, made
U.S. WATCH public on Feb. 2, frustrating and
disappointing.
–50
2012 ’13 ’14 ’15 ’16 ’17
“It’s not a Facebook, nor do I Sources: the company (users); FactSet (stocks);
think it’ll ever be a Facebook,” WSJ Market Data Group (index) THE WALL STREET JOURNAL.
said Nabil Elsheshai, senior eq-
uity analyst at Thrivent Finan- what they consider to be a so- Stories on Instagram—direct
cial, who is considering whether cial network. Snap defines the competition to a Snapchat fea-
to recommend that the mutual- camera as the screen that is the ture which lets users create a
fund firm invest in the IPO. starting point for most products series of videos and images that
“Their strategy is going to have on smartphones. disappear after 24 hours. Five
to fit that knowledge.” Reading further down the months after the launch, the
The skepticism is notewor- document didn’t mollify inves- new Instagram feature reached
thy, considering the fanfare that tors, some said. 150 million daily active users,
has surrounded highly valued Many are concerned about Facebook Chief Executive Mark
tech startups in the past, as well slowing user growth, particu- Zuckerberg said on an early
as how long it has been since larly since the rapid rise in pop- February earnings call.
there was one of this size. ularity of the Snapchat social- Mr. Meeks said he also
Snap in its IPO is planning to messaging platform has been a wanted Snap to address an ele-
seek a target valuation of be- top justification for the com- phant in the room. “If daily ac-
tween $20 billion and $25 bil- pany’s valuation. tive users flatten, that’s what
lion, The Wall Street Journal In the most recent quarter, took Twitter down,” he said.
has reported, which at the high Snap had 158 million daily ac- When Twitter debuted, the
end would make it the largest tive users on average, according number of monthly active users
U.S.-listed tech offering since to the company’s filing. That had grown 6%, 7% and 10% in
Alibaba Group Holding Ltd. figure rose by 3.3% from 153 the prior three quarters. In the
NASA
priced its IPO in 2014, according million users for the quarter 12 months through Sept. 30,
White House advisers are considering a manned mission to refurbish the Hubble Space Telescope. to Dealogic. ended Sept. 30. Daily active us- Twitter’s user growth has fluc-
People close to Snap have re- ers grew by 7% in the third tuated between zero and 1.7%.
HIGHER EDUCATION SPACE White House hasn’t nominated a iterated their confidence that quarter from an average 143 Twitter shares fell 12% after the
new head for the space agency. they will be able to hit their million daily active users in the company reported its tenth con-
Yale Renames College Hubble Telescope —Andy Pasztor range. second quarter. secutive quarter of slowing rev-
For Computer Pioneer Mission Considered Should Snap stumble in its “The argument here is, enue growth on Thursday, al-
MUSIC debut, bankers, lawyers and in- ‘We’re going to build this huge though the company said its
Yale University will rename President Donald Trump’s ad- vestors say that could deter audience and monetization will daily user base jumped. Twitter
Calhoun College, a residential visers are considering an indus- Al Jarreau, Jazz other tech companies from follow,’” said Rett Wallace, chief shares closed Friday at $15.58 a
college named for an ardent try proposal to send a manned Singer, Dies at 76 moving forward with IPOs. executive at Triton Research share, down 40% from their IPO
supporter of slavery, to honor spacecraft to repair and upgrade There were at least 154 private LLC, whose firm collects and price of $26 apiece.
the late computer scientist the Hubble Space Telescope, said Jazz singer Al Jarreau died in companies valued by venture- analyzes data on companies. He Though investors said they
Grace Murray Hopper. people familiar with the matter. Los Angeles Sunday, just days capital firms at $1 billion or added that before looking at were focused on the company’s
University trustees voted Fri- The talks are preliminary, no after announcing his retirement more as of January, according Snap’s prospectus, many inves- financials and growth pros-
day to reverse a decision made specific plans have been drafted from touring. He was 76. to Dow Jones VentureSource, tors were hoping for answers pects, an unusual ownership
last year to keep the name. John and those currently overseeing The Milwaukee native won including ride-hailing company about how to make money off structure also hangs over the
C. Calhoun was a Yale graduate, the National Aeronautics and seven Grammys over his 50-year Uber Technologies Inc. and Snapchat’s growing user base. company’s roadshow.
senator, secretary of war, secre- Space Administration could veto career. His biggest single was room-rental website Airbnb Inc. Now there is a question about Snap will issue nonvoting
tary of state and vice president. the concept. 1981’s “We’re in This Love To- Snap put off some prospec- whether Snap can build that shares in its IPO, which the
Ms. Hopper, also a Yale grad- An administration representa- gether,” and he sang the theme tive investors in the first line of huge audience, he said. company said was unprece-
uate, helped develop the com- tive declined to comment, except to TV’s “Moonlighting.” its IPO filing: “Snap Inc. is a Snap has attracted advertis- dented for a U.S. debut. Co-
puter language COBOL. She was to say that transition officials He is one of the few artists camera company.” ers in part because of its cov- founders Evan Spiegel and
awarded a posthumous Presi- lacked power to approve new to have won Grammys in three Fund managers said they eted user base of teens and Bobby Murphy currently hold
dential Medal of Freedom by projects and “it will be the re- separate categories—jazz, pop found the description surprising young adults. The majority of about 89% of the voting shares.
former President Barack Obama. sponsibility of the NASA admin- and R&B. because it implies Snap is a Snapchat’s users are 18 to 34 If either founder dies or is inca-
—Melissa Korn istrator to set NASA policy.” The —Associated Press hardware maker, rather than years old, according to the com- pacitated, according to the pro-
pany’s filing. spectus, the other could control
“No matter how cool Snap’s nearly all the voting power of
THE WALL STREET JOURNAL (USPS 664-880)
(Eastern Edition ISSN 0099-9660) (Central Edition ISSN 1092-0935)
(Western Edition ISSN 0193-2241)
CORRECTIONS AMPLIFICATIONS users are, the advertisers will the stock.
go black and white and look at Some investors said they
Editorial and publication headquarters: 1211 Avenue of the Americas, New York, N.Y. 10036
Published daily except Sundays and general legal holidays. the numbers,” said Paul Meeks, were put off by the structure,
Periodicals postage paid at New York, N.Y., and other mailing offices. Timothy Piazza, the Penn The airport codes for New chief investment officer of Sloy, particularly those who said they
POSTMASTER: Send address changes to The Wall Street Journal, 200 Burnett Rd., Chicopee, MA 01020. State student who died after Jersey’s Teterboro airport and Dahl & Holst. don’t know the co-founders well
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., 1155 Avenue of a fall down the stairs at his Paris Le Bourget are TEB and Mr. Meeks said he would enough to entrust them with so
the Americas, New York, N.Y. 10036. The Journal reserves the right not to accept an advertiser’s order. fraternity house, was a mem- LBG, respectively. The Short consider the Snap IPO depend- much power. These investors
Only publication of an advertisement shall constitute final acceptance of the advertiser’s order.
Letters to the Editor: Fax: 212-416-2891; email: [email protected] ber of Beta Theta Pi. A U.S. Answer chart in the Business & ing on the price, and wanted to said they hoped the company’s
News article Saturday incor- Finance section on Thursday in- hear more about how Snap marketing roadshow would pro-
NEED ASSISTANCE WITH YOUR SUBSCRIPTION? rectly gave the name of the correctly gave them as TAB and would deal with building up vide an opportunity to warm up
CONTACT CUSTOMER SUPPORT. fraternity as Tau Kappa Epsi- LGB, and incorrectly said Teter- daily active users and compet- to the idea of concentrated
By web: customercenter.wsj.com lon. boro airport was in New York. ing with Facebook. power.
By email: [email protected] Snap’s slowdown in user “When I see things like that,
By phone: 1-800-JOURNAL (1-800-568-7625) growth coincided with rival it doesn’t get me too jazzed,”
Readers can alert The Wall Street Journal to any errors in news articles by
Or by live chat at wsj.com/livechat emailing [email protected] or by calling 888-410-2667. Facebook’s launch in August of Mr. Meeks said.
THE WALL STREET JOURNAL. * * * * * * Monday, February 13, 2017 | A3
U.S. NEWS
©T&CO. 2017
Ban Ails Doctor Programs
Hospitals play a Security and State departments
to grant work-visa waivers for
guessing game as foreign doctors under consider-
foreign physicians ation for residency programs Love is...
JENNIE MATTHEW/AGENCE FRANCE-PRESSE/GETTY IMAGES

and affected by the ban.
seek U.S. training slots A spokeswoman for Home-
land Security said the agency A SMILE THAT
BY MELANIE EVANS is adhering to a court order
temporarily halting enforce- LIGHTS UP
President Donald Trump’s
travel ban has thrown U.S. hos-
ment of the travel ban. A State
Department official said the THE ROOM
pitals and medical schools into agency has resumed process-
TIFFANY T COLLECTION
confusion ahead of a deadline ing visas in response to the
to select fledgling doctors for court ruling.
highly competitive training Some residency officials
spots known as residencies. said the travel ban won’t alter
Roughly 1,000 doctors who their rankings, though they say
applied for U.S. residency slots their programs could be left
this year are from the seven short-staffed if one of their
countries included in the Kamal Fadlalla of Sudan, center, a medical resident, returned to the picks is denied entry to the U.S.
White House’s travel ban, out U.S. Feb. 5 after his trip had been blocked by Mr. Trump’s travel ban. Disrupting the pipeline of
of a total of 56,530 applicants, foreign medical graduates
according to the Association tive order on immigration, on proceed on its immigration could make it harder to find
of American Medical Colleges, hold after a federal appeals policy following the appeals doctors in coming years in U.S.
which manages the application court ruling last week, leaves court setback. The executive communities where physicians
process. In recent years, about them with a difficult choice: order barred travel to the U.S. are already scarce. Interna-
14% of the more than 20,000 forgo strong candidates from from seven predominantly tional doctors can apply to re-
doctors who join U.S. training countries included in the ban Muslim countries—Iran, Iraq, main in the U.S. if they agree to
programs aren’t U.S. citizens. or risk vacancies should rap- Libya, Somalia, Sudan, Syria work in high-need communities
The final, pressure-filled idly shifting U.S. immigration and Yemen—for at least 90 for three years, a program that
decisions about who will train policies bar foreign doctors days. The administration said “has worked exceptionally well
where begin this month, when from entering the country. the ban was made out of na- for American communities,”
doctors and residency pro- At Cook County Health & tional-security considerations. said Dr. Darrell Kirch, president
grams rank each other in or- Hospitals System in Chicago, Hospital officials said they and CEO of the AAMC.
der of preference. The rank- “We try to be relatively blind took little comfort from the Sudanese physician Mo-
ings, due Feb. 22, are fed to the nation of origin or the court ruling because their hamed Osman, who has applied
through a computer algorithm visa status of an applicant” for ranking deadline is approach- for U.S. residency programs,
800 843 3269 | TIFFANY.COM
that matches applicants with about 120 training spots open ing quickly and they don’t said he was anxious when he
hospitals. Residents are the each year, said Chief Executive know if any additional immi- learned of the executive order.
workhorses of many U.S. hos- Officer Jay Shannon. “But this gration-related executive or- “That was a very hard mo-
pitals, heavily relied upon to has added a huge layer of ders could be down the road. ment,” he said. Now he is wait-
evaluate and treat patients. complexity” to the process. The Greater New York Hos- ing to learn whether he will
Hospital officials say Mr. The White House is examin- pital Association in a letter match with a program. “I want
Trump’s late-January execu- ing several options for how to Thursday asked the Homeland to start my career,” he said.
CaliforniaReservoirRaisesConcern
BY JIM CARLTON
Authorities issued emer-

gency evacuation orders for
tens of thousands of people
living downstream from
Northern California’s Lake
Oroville late Sunday, after an
auxiliary spillway that was put
into service over the weekend
appeared in danger of failure
due to erosion.
State and local officials said
they were racing to plug a
hole that opened up in the
backup spillway Sunday, while
at the same time increasing
the amount of water being re-
leased from California’s sec-
ond-largest reservoir after it
was filled by rains and snow
that have hit the state.
WILLIAM CROYLE/CALIFORNIA DEPARTMENT OF WATER RESOURCES/ASSOCIATED PRESS
“I am hopeful that the lake

level will drop significantly in
a very timely fashion to re-
lieve pressure on the spill-
way,” Sheriff Kory Honea of
the local Butte County said
Sunday night. Sheriff Honea
ordered evacuations of parts
of Oroville and other commu-
nities along the Feather River
downstream of the big lake,
which is held back by a 770-
foot dam. The area is about 70
miles north of Sacramento.
Lake Oroville’s main, con-
crete spillway ruptured last
week as state water officials
tried to keep the lake from
overflowing, forcing them to
use the emergency spillway, a
mostly tree-covered hillside
which hadn’t been used since
the reservoir was built in the The main, concrete spillway at Northern California’s Lake Oroville ruptured last week. Officials were
1960s. worried Sunday that a backup spillway, upper left, a mostly tree-covered hillside, could also fail.
Sessions Signals Pullback in Transgender Policy

BY SARA RANDAZZO Others welcomed the move.
“I think the Obama admin-
Newly instated U.S. Attor- istration had distorted federal
ney General Jeff Sessions has law,” said Gary McCaleb, se-
shown an early sign of backing nior counsel with conserva-
away from an Obama adminis- tive advocacy group Alliance
tration initiative that directs Defending Freedom. He said
schools to allow transgender schools shouldn’t face the loss
students to use the bathrooms of federal funding if they re-
and locker rooms of the sex fuse to comply with the
with which they identify. guidelines. “It’s a matter of
JIM LOSCALZO/CNP?ZUMA PRESS
The signal came in a Friday respecting the differences be-

court filing from Justice De- tween boys and girls and pro-
partment lawyers withdrawing tecting the privacy for all stu-
a request made last year by dents.”
the Obama administration. Texas Attorney General Ken
That request came in response Paxton and a Justice Depart-
to a judge’s ruling in a lawsuit ment spokesperson couldn’t
challenging federal guidance immediately be reached for
to states on accommodating Jeff Sessions last week after being sworn in as attorney general. comment Sunday.
transgender students. In July, 10 other states
The guidance, issued by After a district court judge and that, “The parties are cur- filed a separate legal chal-
President Barack Obama last in August temporarily blocked rently considering how best to lenge to the transgender-
May, said transgender stu- the directive, Mr. Obama proceed in this appeal.” It is rights guidance. That case is
dents are protected under Ti- sought to limit the scope of unclear whether the Trump pending in Nebraska.
tle IX of the Education the court’s ruling to only apply administration will ultimately The development comes as
Amendments of 1972, a federal to those states pushing the ap- stop defending the directive. transgender-rights challenges
law that bars discrimination in peal. Doing so would mean the Gay-rights advocates said continue to embroil many
education based on sex at transgender-rights guidance the filing could be a sign of parts of the country. The U.S.
schools that accept federal would remain in effect in the things to come. “What we can Supreme Court is scheduled
money. Some states dispute rest of the country. A group of infer from it is that the De- to hear oral arguments in late
that interpretation of Title IX. 12 states and the District of partment of Justice and March in the case of Gavin
The filing, in the Fifth U.S. Columbia had sided with Mr. Trump administration are un- Grimm, a transgender high
Circuit Court of Appeals, Obama and said they wanted likely to robustly pursue rights school student whose Virginia
stems from a lawsuit filed by the directive to apply to them. for transgender people,” said school district stopped allow-
Texas and a coalition of 12 The Friday filing said the Sarah Warbelow, legal director ing him to use the male rest-
other states opposing the Justice Department is no lon- for Human Rights Campaign, room. Gavin was born female
memo. ger seeking to limit the ruling an LGBTQ-rights organization. but identifies as male.
A4 | Monday, February 13, 2017 P W L C 10 11 12 H T G K B F A M 1 2 3 4 5 6 7 8 9 O I X X ****** THE WALL STREET JOURNAL.
U.S. NEWS
Mnuchin Poised to Secure Confirmation

The new Treasury Shulkin as Mr. Trump’s secre- I have been maligned as taking ment, bank regulation and the
tary of Veterans Affairs. Dr. advantage of others’ hardships implementation of interna-
secretary would shape Shulkin currently serves as the in order to earn a buck. Noth- tional sanctions.
a tax-code overhaul head of the VA’s health-care ing could be further from the One pressing need for the
system. truth,” Mr. Mnuchin said at his new Treasury secretary will be
and regulation revamp That would leave six more Jan. 19 confirmation hearing. to raise the government’s bor-
Trump cabinet picks whose The partisan row illustrates rowing limit, currently sus-
BY NICK TIMIRAOS confirmations are pending, in- the challenge facing Mr. pended through March 15, af-
cluding Commerce Secretary- Mnuchin in fashioning a taxter which the department
WASHINGTON—The Senate designate Wilbur Ross, Energy code overhaul, infrastructure must use emergency measures
is expected to confirm Steven Secretary-designate Rick Perry package, financial-regulation to prevent the country from
Mnuchin as the 77th Treasury and Interior Secretary-desig- revamp and housing-finance being unable to pay certain
JOSHUA ROBERTS/REUTERS
secretary as soon as Monday nate Ryan Zinke. One of the legislation that can attract bi- bills. Independent analysts be-
night, which would end one of pending nominees, Labor Sec- partisan support. lieve those measures can last
the most protracted confirma- retary-designate Andy Puzder, For example, Democrats through the summer.
tion battles for the position is set to have a confirmation have pressed Mr. Mnuchin to At his confirmation hearing,
and place the 54-year-old fi- hearing on Thursday. explain how he will uphold a Mr. Mnuchin said he hoped
nancier in a leading position Mr. Mnuchin cleared the pledge delivered hours after lawmakers would move soon
to advance President Donald Senate Finance Committee Mr. Trump announced his to increase the borrowing
Trump’s promises to refashion Steven Mnuchin could be confirmed Monday as Treasury secretary. earlier this month after Demo- nomination to revamp the tax limit.
the U.S. tax code and financial crats boycotted the vote. code in a way that provides He said he believed existing
regulation. Already, his confirmation former Goldman Sachs banker Democrats said they wanted “no absolute tax cut” for the sanctions on Russia should be
Mr. Mnuchin has faced op- has faced the longest delay of named as the director of the more information from the upper class. maintained and he called for a
position from Democrats for any recent Treasury secretary, White House National Eco- nominee, though some had al- “He has failed to commit to boost in staffing at the Inter-
several reasons, including his and he appears likely to win nomic Council, has played an ready announced their opposi- following his own rule or to nal Revenue Service, where
role rehabilitating the failed confirmation for the position increasingly influential role tion, and Republicans subse- provide any specific answers ranks have thinned partly due
IndyMac Bank, later rebranded with a historically weak mar- shaping policy on tax, regula- quently suspended the rules to on how we would reduce the to spending cuts driven by
OneWest Bank, by moving gin of support, a pattern re- tion and infrastructure. Mr. advance his nomination with- tax burden on middle-class congressional Republicans.
thousands of defaulted mort- flected with other high-profile Mnuchin spent 17 years at the out any Democrats in atten- and working families,” said Delays in Mr. Mnuchin’s
gages through foreclosure. Trump nominees. New York investment bank, dance. Sen. Mark Warner (D., Va.) on confirmation also have pushed
Senators also have raised Mr. Trump was set to meet leaving in 2002. Mr. Mnuchin has rejected the Senate floor last Friday. back the process of approvals
concerns about answers he with Mr. Mnuchin on Sunday The vote will take place as Democrats’ critiques of his re- The responsibilities of the for top Treasury deputies,
provided the committee dur- afternoon at his private club senators work to approve record, and a spokesman has Treasury secretary, who is meaning it could be weeks or
ing the confirmation process in Palm Beach, Fla. With Mr. maining Trump administration said he has provided truthful fifth in the presidential line of months before those positions
pertaining to his complex fi- Mnuchin not in office during cabinet appointees. The Sen- answers to their questions. succession, include everything are filled.
nancial disclosures and his re- the first three weeks of the ate on Monday also is ex- “Since I was first nominated from tax collection and fiscal —Siobhan Hughes
cord at OneWest. administration, Gary Cohn, the pected to confirm Dr. David to serve as Treasury secretary, policy to public-debt manage- contributed to this article.
FLYNN the White House might be hesi-

tant to cut ties to Mr. Flynn,
they added.
Mr. Flynn’s travails come
Continued from Page One amid turmoil in the NSC, where
Trump adviser Steve Bannon some longtime career officials
had dinner with Mr. Flynn have asked to leave their posts
over the weekend, according and return to their home agen-
to another senior administra- cies earlier than planned, and
tion official, and Mr. Bannon’s others say their inability to in-
view is to keep him in the po- fluence policy decisions has
sition but “be ready” to let been demoralizing. NSC offi-
him go, the first administra- cials say there is no process in
tion official said. place by which decisions are
Mr. Trump’s son-in-law and run past council professionals,
senior adviser, Jared Kushner, and some said discussions
as of Sunday evening hadn’t yet about policy decisions in their
weighed in, the official said. areas of focus have excluded
Mr. Flynn initially said that them.
in a conversation on Dec. 29 As pressure has built on
with the Russian ambassador, White House officials, Demo-
Sergey Kislyak, he didn’t dis- crats on Sunday pressed for an
cuss sanctions imposed that independent investigation into
CARLOS BARRIA/REUTERS
day by the outgoing Obama Mr. Flynn’s conversations with

administration, which were Russia’s ambassador.
levied in retaliation for alleged “Either he was lying about
Russian interference in the discussing it or he forgot,” said
2016 presidential election. Mr. Sen. Al Franken (D., Minn.),
Flynn now concedes that he speaking Sunday on CNN.
did, administration officials National Security Adviser Mike Flynn, top, followed by Steve Bannon, boarded Air Force One in West Palm Beach, Fla., on Sunday. Mr. Franken called for an in-
said, after transcripts of his dependent investigation into
phone calls show as much. He any easing of sanctions once has more staunchly advocated of staff. I’m here today as a pol- diplomats, officials have said. the Trump campaign’s and the
also admits he spoke with the Mr. Trump took office, he may Mr. Trump’s views than have icy adviser,” Mr. Miller said. The transcripts of the conver- administration’s ties to Russia,
ambassador more than once have violated a law that pro- some of the president’s top Mr. Priebus is leading the re- sations don’t show Mr. Flynn citing allegations of Kremlin in-
on Dec. 29, despite weeks of hibits private citizens from en- cabinet officials, which could view. Some administration offi- made any sort of promise to terference in the 2016 U.S. elec-
the Trump team’s insisting it gaging in foreign policy, legal complicate any White House cials are hopeful Mr. Flynn lift the sanctions once Mr. tion and Mr. Trump’s refusal to
was just one phone call, offi- experts have said. That would decision to cut ties with the would resign on his own, a per- Trump took office, the officials release his tax returns, as can-
cials said. mark the first instance of a security adviser. son familiar with the matter said. Rather, they show Mr. didates have done since the
Mr. Pence, in television in- person close to Mr. Trump A senior White House policy said. Some people close to Mr. Flynn making more general 1970s.
terviews, vouched for Mr. found to have inappropriate adviser, Stephen Miller, de- Trump already are speculating comments about relations be- Sens. Lindsey Graham (R.,
Flynn, based on a private con- links to Russia, a subject U.S. clined on NBC Sunday to say on possible successors, includ- tween the two countries im- S.C.) and Sheldon Whitehouse
versation, and he was angered officials have been investigat- whether the White House maining retired Lt. Gen. Keith Kel- proving under Mr. Trump, peo- (D., R.I.), who lead the Senate
he repeated information pub- ing for months. tained confidence in Mr. Flynn, logg, who advised Mr. Trump ple familiar with them said. Judiciary Committee’s subpanel
licly that turned out to be un- Mr. Flynn’s calls to the Rus- a retired general, in the wake of during the campaign and who Jettisoning Mr. Flynn might on crime and terrorism, already
true, administration officials sian envoy came amid a push questions over his phone calls. is chief of staff of the National end one controversy, but would have launched an investigation
said. Messrs. Pence and Flynn by Mr. Trump more broadly to “That’s the question that I Security Council. potentially feed perceptions of of Russia’s efforts to influence
spoke twice on Friday, one of- warm U.S. ties to Moscow, a think you should ask the presi- U.S. intelligence services a disorganized White House, the U.S. election.
ficial said. tenet of the new administra- dent, the question you should routinely intercept and moni- some people close to Mr. —Donna Borak
If Mr. Flynn had promised tion’s foreign policy. Mr. Flynn ask Reince [Priebus], the chief tor conversations with Russian Trump said. That’s one reason contributed to this article.
TopAdviser
RepeatsVote-
Court Pick Scales Back
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Top White House adviser Supreme Court nominee
Stephen Miller repeated unsub- Neil Gorsuch has scaled back a
stantiated and widely discred- description of his pro bono
ited claims of voter fraud made work while at Harvard Law
SHAWN THEW/EUROPEAN PRESSPHOTO AGENCY
by President Donald Trump and School after questions arose

said the White House would be about the extent of his involve-
examining the issue. ment with two volunteer crim-
In a contentious interview inal-justice programs.
Sunday with ABC’s “This President Donald Trump
Week,” host George Stephanop- highlighted Judge Gorsuch’s
oulos asked Mr. Miller to pro- volunteer work when he intro-
vide evidence for claims of duced him nearly two weeks
fraud in New Hampshire that ago, saying he had “demon-
Mr. Trump made in a recent strated a commitment to serv-
meeting with senators. ing the less fortunate” by
“It’s very real, it’s very seri- working in the Harvard Prison
ous,” Mr. Miller said, adding Legal Assistance Project and Judge Neil Gorsuch, right, with Sen. Chuck Schumer (D., N.Y.).
that the issue was “widely the Harvard Defenders.
known” in New Hampshire. He The Wall Street Journal last proceedings in Massachusetts guage from the 2006 question-
added, “This morning on this week raised questions about state courts” and helped repre- naire were not intended to re-
show is not the venue for me to the scope of Judge Gorsuch’s sent inmates “with respect to, flect any material change,” the
lay out all the evidence.” work with the two groups, cit- among other things, hearings spokeswoman said.
State election officials and ing former students, adminis- on disciplinary actions taken Ahead of the report on the
independent reviews repeatedly trators and supervising attor- against them.” judge’s volunteer work, the
have undercut suggestions of neys in the programs. A spokeswoman for the White House referred the
widespread illegal voting. Democrats on the Senate Judi- judge said the new question- Journal to a law-school gradu-
Mr. Trump last month called ciary Committee said they naire “naturally focuses” on ate who corroborated Judge
for an investigation into would question Judge Gorsuch more recent pro bono work Gorsuch’s participation in the
whether U.S. elections are about the issue. and “condenses” earlier work. Harvard Defenders but didn’t
tainted by fraud, following his In a questionnaire released Judge Gorsuch added that he provide any details. The White
widely criticized assertion that Saturday by the Judiciary had written and spoken in re- House also provided a brief
illegal ballots deprived him of a Committee, Judge Gorsuch cent years on “ways to ensure 2008 email exchange between
The antidote for “reality” TV TM
popular-vote victory over Dem- said he “participated” in the greater access to justice and the judge and the alumni di-
ocrat Hillary Clinton. two programs. In a 2006 Sen- legal services.” He also added rector for Harvard Defenders.
Mr. Miller sidestepped re- ate form as a federal appeals that he had worked with col- After the Journal report, a
Start Your 60-Day Free Trial peated requests by Mr. Stepha- court nominee, he was more leagues to “enhance the qual- former law student said she
nopoulos for any evidence to specific: He cited those two ity of legal representation for remembered making phone
WITH PROMO CODE: WS back up his claims, which the programs and said he repre- death-row prisoners.” calls with Judge Gorsuch for
president also hasn’t provided. sented “defendants in criminal “Any differences in lan- the prison program.
THE WALL STREET JOURNAL. Monday, February 13, 2017 | A5
A6 | Monday, February 13, 2017 * ***** THE WALL STREET JOURNAL.
WORLD NEWS
Trump Opponent Gains Ground in Mexico
Tough-talking leftist
SASHENKA GUTIERREZ/EUROPEAN PRESSPHOTO AGENCY

leads opinion polls
ahead of next year’s
presidential election
BY SANTIAGO PÉREZ
AND JUAN MONTES
Leftist presidential hopeful

Andrés Manuel López Obrador is
gaining momentum in the race
to lead Mexico, tapping into a
RONALDO SCHEMIDT/AGENCE FRANCE-PRESSE/GETTY IMAGES

nationalist backlash against the
U.S. as President Donald Trump
upends bilateral relations.
The former Mexico City known, “speaks truth to the
mayor, narrowly beaten in Mex- power and is close to the peo-
ico’s two previous presidential ple,” said Salvador Irigoyen, a
elections, is now widening his 21-year-old university student.
lead in opinion polls ahead of The visceral personality of
next year’s contest. Mr. López Obrador has often
A survey recently conducted been compared with that of Mr.
by El Financiero newspaper gave Trump. “His weakest point is his
Mr. López Obrador, the founder intolerance and arrogance. Who-
and leader of Mexico´s National ever doesn’t agree with him is
Regeneration Movement, 33% his enemy. He is in the tradition
voter support, up 4 percentage of the Latin American strong-
points since November and 6 Anti-Trump protests in Mexico City on Sunday reflect anger that has elevated presidential hopeful Andrés Manuel López Obrador, right. man,” said Fernando Belaun-
percentage points ahead of for- zarán, a lawmaker with the left-
mer first lady Margarita Zavala, he said, since most Mexican ist Democratic Revolution Party.
a leading presidential contender Undocumented naled in a show of hands that moval stoked panic and protests exports to the U.S. have signif- Yet this time around, he is
within the conservative National they were ready to fight depor- in immigrant communities. icant U.S. components. “If adopting a more moderate tone.
Action Party. Migrants Vow tation in U.S. courts. Ms. García was convicted of Mexico was unfairly benefit- Mr. López Obrador has prom-
On Sunday, Mr. López Obra- To Fight Deportation “Even if that means detention identity theft, a felony, after ting from [the North American ised to triple growth rates to an
dor, who hasn’t officially de- for weeks?” asked former Foreign being arrested in 2009 with a Free Trade Agreement], then annual 6% and broaden welfare
clared his candidacy, addressed Minister Jorge Castañeda. false Social Security card. She Mexico wouldn’t suffer eco- plans. He also wants to lower
hundreds of Mexicans, migra- PHOENIX—All but one of “Even if it takes months,” had been released into the nomic stagnation and emigra- Mexico’s high dependency on
tion activists and supporters about 50 undocumented Mexi- shouted one woman. “Even if it community with the require- tion, as it is right now.” U.S. corn and gasoline imports,
gathered at Olvera Street Square can migrants at a meeting on takes years,” another yelled. ment of checking in with immi- In Mexico City earlier Sun- goals that have been criticized
in downtown Los Angeles, in the Saturday indicated they would “We are here to fight.” gration agents every six day, thousands took to the capi- as unrealistic and protectionist.
first of what he said would be rather risk detention and long The Phoenix meeting took months. Last week, when she tal’s central thoroughfare to Not everyone is convinced
visits to seven U.S. cities over court battles in the U.S. than place two days after the deporta- reported to the Immigration protest the border-wall plan, the third time will be a charm
the next two months. There are return to Mexico voluntarily. tion of Guadalupe García, a 36- and Customs Enforcement of- while criticizing Mexican Presi- for the leftist politician.
an estimated 35 million people The majority of migrants at year-old Mexican who lived in the fice in Phoenix, she was de- dent Enrique Peña Nieto and “What surveys show at this
of Mexican descent in the U.S. the meeting in Phoenix, which U.S. for 22 years and has two tained and deported to Mexico. the ruling PRI party. Mr. Peña stage is how well-known a politi-
The visit comes as the new included Mexican officials, sig- U.S.-born children. Ms. García’s re- —José de Córdoba Nieto faces rising political pres- cian is, because there are no for-
U.S. administration ramped up sure to defend Mexico’s national mal presidential candidates yet,”
an immigration crackdown and pride, even as both countries said Ulises Beltrán, head of local
launched deportation raids of new border wall, and his at- Obrador said, adding that the employment isn’t the result of get ready to renegotiate Nafta. polling firm BGC. “Mr. López Ob-
undocumented immigrants in tacks on U.S. companies that crackdown on migration is the hiring Mexican workers, but of Mr. López Obrador’s visit to rador always begins the race up
several U.S. cities over the past open factories in Mexico. result of unrest, unemploy- flawed government policies.” the U.S. appears to be designed high because of this factor, and
week. Mr. Trump also has an- “We must confront this ment and low income that Mr. Trump’s complaints to send a clear message: He will also because of his populist
gered Mexicans with his insis- campaign of hate and human- fueled a nationalist backlash in about the U.S. trade deficit stand up to Mr. Trump. rhetoric. But then his lead tends
tence that Mexico will pay for a rights violations,” Mr. López the U.S. “Low income and un- with Mexico are misleading, AMLO, as he is widely to narrow as the election nears.”
President Backs Off Some Early Foreign-Policy Stances

BY PETER NICHOLAS ter Shinzo Abe visiting the During the campaign, Mr. China” policy that has under-
AND CAROL E. LEE president’s Mar-a-Lago estate Trump had maintained a com- pinned Sino-American rela-
in Florida, the two men made a bative approach to China, and tions.
WEST PALM BEACH, Fla.— joint appearance Saturday broke protocol after his victory White House officials said
President Donald Trump ap- night in response to the mis- by accepting a congratulatory Mr. Trump did so to reset rela-
pears to be adopting more- sile launch. Mr. Trump pro- phone call from Taiwan’s tions with the Chinese.
conventional positions aligned claimed that the “United States leader. He described the “One Mr. Trump has taken a simi-
with decades of U.S. foreign- of America stands behind China” policy that grants dip- lar posture toward U.S. alli-
policy making and diplomacy, Japan, its great ally, 100%.” lomatic recognition to Beijing ances in Europe, particularly
JOE RAEDLE/GETTY IMAGES
pulling back from some of the Mr. Trump’s evolution but not Taiwan as up for nego- the North Atlantic Treaty Or-
more unorthodox promises he comes as his foreign-policy tiation, a possible bargaining ganization. After meeting with
advanced as a candidate. team has taken shape, with chip as he pressed for conces- British Prime Minister Theresa
In recent dealings with Asia Jim Mattis and Rex Tillerson sions from the Chinese in its May, he said he would strongly
and the Middle East, Russia confirmed by the Senate and currency practices. back the alliance. His adminis-
and European allies, Mr. firmly in place at the Defense “Everything is under negoti- tration is expected to support
Trump has shown more defer- and State departments, respec- ation, including ‘One-China,’ ” Montenegro’s bid to join NATO,
ence to the consensus views President Donald Trump en route to his Mar-a-Lago resort Sunday tively. Mr. Trump told The Wall though Russia opposes the
taken by past Republican and “He’s getting more advice Street Journal in an interview move.
Democratic administrations. from North Korea offered a a U.S. defense agreement with and he seems to see wisdom in a week before he was sworn in. Before taking office, Mr.
The coming week provides an- vivid illustration of how Mr. Japan was unfair, permitting greater orthodoxy,” said Jon But on Thursday, Mr. Trump Trump described the NATO al-
other set of tests, with visits Trump has abandoned crowd- the Japanese to sit home and Alterman, who runs the Middle spoke to Chinese President Xi liance as “obsolete.”
by the leaders of Canada and pleasing campaign rhetoric in watch “Sony” TV while the U.S. East program at the Center for Jinping and acquiesced to the
Israel scheduled. the face of real-world threats. was attacked. Strategic & International Stud- status quo, confirming he Trudeau, Trump to talk trade
A weekend missile launch As a candidate, Mr. Trump said With Japanese Prime Minis- ies, a think tank. would abide by the same “One at Monday meeting............... A8
LAUNCH
Continued from Page One
hosting Japanese Prime Minis-
ter Shinzo Abe at his Mar-a-
Lago estate in Palm Beach,
Fla., prompting the leaders to
make an unscheduled, late-
KIM HEE-CHUL/EUROPEAN PRESSPHOTO AGENCY
night joint appearance.

Mr. Abe called the launch
“absolutely intolerable” and de-
manded North Korea “fully
comply” with United Nations
resolutions banning such activ-
ity. Mr. Trump made no men-
tion of North Korea, South Ko-
rea or possible retaliatory
plans, saying, “I just want ev-
erybody to understand and
fully know that the United
States of America stands be- In Seoul, people stopped to watch a television news broadcast about the missile launch.
hind Japan, its great ally,
100%.” had made advances in various statement to “immediately pur- one occasion last year, but law-
World leaders are watching rocket technologies and said sue a series of tough mea- makers have urged a broader
how Mr. Trump responds to the missile could be “tipped sures,” including sanctions, mil- application, given that U.S. offi-
Pyongyang’s move, which could with a nuclear warhead.” itary exercises with U.S. allies cials believe 90% of North Ko-
provide clues to how the new A former administration of- in the region and the acceler- rea’s trade is with China.
U.S. administration will react to ficial said the Obama White ated deployment in South Ko- “I think we have to tell the
a range of other foreign-policy House left the Trump team a rea of an advanced missile sys- Chinese that they have to put
challenges and hot spots playbook of options, anticipat- tem known as the Terminal the wood to North Korea in a
around the world. ing a provocative action was High Altitude Area Defense sys- much more serious way than
U.S. defense officials believe likely immediately following tem, or Thaad. they have done so far,” Senate
the launch was of a medium- or the presidential inauguration A bill passed last year and Democratic Leader Chuck
intermediate-range missile, ac- last month. That included pos- signed into law by former Pres- Schumer of New York said Sun-
cording to the Pentagon. sible multilateral and unilateral ident Barack Obama allows the day in an interview on CBS’
Early Monday, North Korea’s moves encompassing sanctions, administration to go after Chi- Face the Nation.
official Korean Central News United Nations action, state- nese companies that do busi- South Korea’s acting Presi-
Agency called the launch a suc- ments with South Korea and ness with North Korea’s weap- dent Hwang Kyo-Ahn said he
cessful test of a “surface-to- Japan, and speeding up the de- ons complex. The law in effect and the government would
surface medium long-range bal- ployment of missile defenses. forces companies to cut their push for a strong international
listic missile,” which it called The senior Trump adminis- ties to Pyongyang or suffer pu- response to punish North Ko-
the Pukguksong-2. The North tration official said Sunday the nitive financial consequences, rea, according to a written
said that leader Kim Jong Un White House is in the midst of such as restricted access to statement from his office.
personally guided the missile a policy review regarding North banking systems and financial —Kwanwoo Jun in Seoul
launch. Korea. networks. and Gordon Lubold in
In the report, Mr. Kim said Sen. Cory Gardner (R., Colo.) The Obama administration Washington contributed to
the launch proved the North urged Mr. Trump in a written used its provisions on at least this article.
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A8 | Monday, February 13, 2017 NY THE WALL STREET JOURNAL.
WORLD NEWS
Trudeau Visits to Talk Trade British Minister

BY PAUL VIEIRA
AND WILLIAM MAULDIN Praises U.S. Ties
A meeting between President BY BEN KESLING more to contribute to the alli-
Donald Trump and Canadian ance. Mr. Fallon was due to
Prime Minister Justin Trudeau ERBIL, Iraq—U.K. Defense visit British troops training
in Washington on Monday is ex- Minister Michael Fallon said Iraqi and Kurdish forces.
pected to provide a glimpse into the British-American defense “The president’s remarks
how the Trump administration partnership had never been have clearly turbocharged that
will seek to overhaul the 23- stronger and that President process,” Mr. Fallon said of the
year-old economic framework Donald Trump had likely gal- push for increased defense
of North America. vanized the two countries’ ef- commitments. “If President
Mr. Trump wants to renego- forts to strengthen the North Trump has galvanized the alli-
CHRIS WATTIE/REUTERS
tiate the North American Free Atlantic Treaty Organization ance, then we’re in his debt.”
Trade Agreement, or Nafta, and and push allies to contribute Mr. Fallon said the histori-
has vowed to extract new, bet- more to mutual defense. cally strong relationship be-
ter terms for the U.S. So far Mr. Fallon, who is sched- tween the U.S. and the U.K.
most of his focus has been on uled to speak with U.S. Secre- continued to this day.
Mexico and the $63 billion U.S. tary of Defense Jim Mattis in He said Mr. Trump was
trade deficit there. Canadian Prime Minister Justin Trudeau will meet with President Donald Trump in Washington Monday. coming days, said in an inter- looking at ways “to accelerate
Mr. Trudeau, the leader of view on Saturday that the de- the campaign against Daesh,”
Nafta’s other partner, has indi- views on a number of issues in- get started on revamping Nafta, expedited consideration on Cap- fense alliance between the U.S. using a synonym for the Is-
cated that he is intent on build- cluding the goal of fighting cli- including slow confirmation for itol Hill. and U.K. hadn’t been affected lamic State extremist group.
ing a smooth relationship and mate change. They did differ on his leading trade officials and “To me, what we’ve seen so by turmoil within the U.S. or Mr. Fallon said NATO had
finding common ground with TransCanada Corp.’s proposed the cancellation of a previous far continues to confirm that internationally following Mr. boosted its role in Iraq, open-
Mr. Trump despite their many Keystone XL pipeline, which Mr. trip to Washington by Mexico’s Mexico and Canada have not Trump’s election. ing a new training program in
policy differences on issues in- Obama opposed and for which President Enrique Peña Nieto yet agreed to renegotiate any Mr. Fallon became the most the country earlier this month
cluding immigration. Mr. Trump has indicated his after a bitter public dispute particular provision of Nafta,” recent U.K. official to publicly which both Britain and the
“We both got elected on support. over a proposed wall on the said Matt Gold, a Fordham Uni- support Mr. Trump’s adminis- U.S. support.
commitments to strengthen the Officials haven’t disclosed de- southern border. versity adjunct law professor tration despite widespread The defense minister said
middle class and support those tails about the Trump-Trudeau Mr. Trudeau’s arrival begins and former deputy assistant concern among Britons over a that while Britain wouldn’t go
working hard to join it, and meeting, although the future of the delicate maneuvering that U.S. trade representative. “I broad range of domestic and as far as Mr. Trump, who had
that’s what we are going to fo- Nafta and ramifications of a po- will set the tone for formal talks think it’s predictable that Can- foreign stances. Prime Minis- described NATO as “obsolete,”
cus on in these meetings,” Mr. tential border-adjusted tax are to update the pact, which would ada and Mexico are going to ter Theresa May was criticized he agreed the alliance needed
Trudeau, leader of the centrist expected to be a focus, U.S.-Can- require the cooperation of all slow down that process.” at home after she invited Mr. to bring itself up to date.
Liberal Party of Canada, said ada experts say. White House three countries, including their To date, Mr. Trudeau and Trump to visit London, making “There is work to be done
during a tour of Canada’s North press secretary Sean Spicer said lawmakers. Mr. Trump hasn’t other Canadian officials have the offer during a January to modernize NATO,” Mr.
last week. Wednesday that “trade and se- yet formally notified Congress been cautious in their com- visit to Washington. Fallon said, adding that the
The prime minister had a curity and commerce” would be of plans to hold talks on Nafta, ments about the Trump admin- Mr. Fallon said during a trip organization’s bureaucracy
smooth and easy relationship on the agenda. a step that is required 90 days istration and Nafta, conveying to the Iraqi Kurdish capital had to be streamlined and the
with former President Barack So far, Mr. Trump has en- before negotiations can begin instead a readiness to discuss that the U.S. and U.K. agreed alliance made more attentive
Obama, with whom he shared countered setbacks in his bid to on any trade deal eligible for improvements to the deal. that NATO partners must do to current threats.
Soaring Inflation
Monthly Egyptian consumer
prices, change from a year earlier
Egypt’s Rising Prices Fan Economic Concerns
January Inflation in Egypt hit its said on Saturday. Egypt’s head- increased the cost of living for cal deficit and unemployment that is approaching 100% of
30% highest level this decade be- line inflation was at 23.3% a the country’s largely working- rates jumped to double digits. GDP, some analysts said.
28.1%
Nov. 3: Egypt cause of a weaker currency month earlier, according to data and middle-class people. But Egypt’s moves to cut GDP growth is expected to
devalues pound and slashed state assistance, from the central bank, up from The Egyptian government subsidies, trim public-sector rebound to 6% by 2021 if over-
20 19.4% in November, when Egypt adopted tough measures re- wages and raise taxes have hauls are properly imple-
By Nikhil Lohade floated its currency and allowed quired to secure funds from helped the country raise billions mented, the IMF said. That
in Dubai and it to fall more than 50% against the International Monetary of dollars in recent months. will help create more jobs and
10 Dahlia Kholaif in Cairo the U.S. dollar. Fund and other creditors to The cash will help support tackle high unemployment.
The steep drop in the Egyp- turn around an economy bat- its strained finances and pay Investors have backed
escalating concerns about the tian pound’s value has made tered by years of political un- for vital imports such as Egypt on the steps it has taken
economic health of the Arab imports more expensive, while rest and a recent spate of ter- wheat and medicine. The fiscal to reshape its economy.
0 world’s most-populous nation. other recent government mea- rorist attacks. Economic adjustments will assist in nar- Officials have sought to calm
2016 ’17 The annual urban inflation sures such as a cut in subsidies growth has averaged about rowing Egypt’s budget deficit, nerves by assuring Egyptians of
Sources: Egypt’s central bank (2016); rate increased to 28.1% in Janu- for fuel, the introduction of a 2.5% on average over the past which was about 12% of gross the benefits the austerity mea-
statistics agency (January) ary on higher food and beverage value-added tax and increases five years, according to the domestic product last year, sures and economic overhauls
THE WALL STREET JOURNAL. prices, Egypt’s statistics agency in import tariffs have sharply IMF, even as inflation, the fis- and reduce government debt will bring in the longer term.
WORLD WATCH
CERILO EBRANO/EUROPEAN PRESSPHOTO AGENCY
Residents of Surigao City, the Philippines, inspected a damaged bridge on Sunday. The southern
part of the country was hit with aftershocks following a powerful earthquake on Friday.
JAPAN THE PHILIPPINES NEW ZEALAND

Economic Growth Strong Aftershocks Stranded Whales
Slowed in Quarter Continue in South Swim Back to Sea
The economy slowed again in Philippine officials on Sunday More than 200 stranded
the final quarter of 2016 as fee- warned survivors of Friday’s whales managed to refloat
ble spending by consumers took powerful earthquake in the themselves overnight from Sat-
the shine off a pickup in exports south to ensure homes and urday to Sunday and swim
and business investment, leaving buildings are sturdy enough be- away, while volunteers in New
growth lagging behind the pace fore venturing back amid strong Zealand managed to save an-
targeted by Prime Minister aftershocks. other 17 whales at high tide.
Shinzo Abe’s administration. The magnitude-6.7 quake late More than 650 pilot whales
Japan’s real gross domestic Friday killed at least eight peo- have beached themselves along
product grew 1.0% on an annual- ple, injured more than 200 and Farewell Spit at the tip of New
ized basis in the three months damaging the main provincial Zealand’s South Island in two
through December for the fourth airport and about 1,000 houses separate mass strandings over
consecutive quarter of expan- in Surigao, officials said. recent days. About 350 have
sion, the longest stretch of gains Officials appealed for volunteer died, including 20 that were eu-
since 2013, according to Cabinet engineers to check damaged thanized. Another 100 have been
Office data. schools, hospitals, malls, hotels and refloated by volunteers and
The expansion was slightly other buildings, especially in the more than 200 have swum
smaller than a 1.1% forecast provincial capital of Surigao City. away unassisted.
from economists surveyed by Power was restored on Sunday in Hundreds of volunteers have
The Wall Street Journal. some parts of the city. spent days at the beach dousing
While the latest figures point “Our call is, do not return the whales with buckets of wa-
to steadier if unremarkable hastily after the strong quake,” ter and trying to refloat them.
growth in Japan over the past said Romina Marasigan, spokes- Department of Conservation
year, the outlook for the econ- woman for the government’s spokesman Herb Christophers
omy over the coming months re- National Disaster Risk Reduction said everyone hopes the strand-
mains unclear. Hopes that a and Management Council. ings are over. Farewell Spit, a
stronger U.S. economy under Renato Solidum, who heads sliver of sand that arches like a
President Donald Trump might the Philippine Institute of Seis- hook into the Tasman Sea, has
fuel global demand are giving mology and Volcanology, said at been the site of previous mass
way to concerns that a possible least 137 aftershocks have been strandings. Sometimes described
rise in U.S. protectionism could recorded. as a whale trap, the spit’s long
weaken international trade. Mr. Duterte had to make a coastline and gently sloping
Mr. Trump has pledged to re- detour following the closure of beaches seem to make it diffi-
duce the U.S. trade deficit, and Surigao City's airport due to cult for whales to navigate away
has criticized Japan for gaining deep cracks in its runway. He ex- from once they get close.
an unfair trading advantage pressed sympathy and pledged New Zealand has one of the
through alleged nontariff barri- financial help to quake survivors highest rates of whale strand-
ers and a weakened yen. needing medical treatment. ings in the world.
—Eleanor Warnock —Associated Press —Associated Press
THE WALL STREET JOURNAL. NY Monday, February 13, 2017 | A8A
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A8B | Monday, February 13, 2017 NY THE WALL STREET JOURNAL.
WORLD NEWS
Romanians Split Over Corruption Fighter

Younger citizens
Crisis of Confidence
embrace prosecutor’s Trust in Romania's government plummeted as the number of cases
campaign, but older brought by the anticorruption directorate rose.
10,000
generation is more wary Percentage of Romanians who Corruption cases
say they trust public institutions 9,000
Total
BY DREW HINSHAW Court
80% Prison 8,000
BUCHAREST, Romania—Not National
7,000
long ago, the prosecutors at
DANIEL MIHAILESCU/AGENCE FRANCE-PRESSE/GETTY IMAGES
Anticorruption
Romania’s anticorruption of- Directorate
60 6,000
fice rarely took on a bribery
suspect bigger than a school- 5,000
teacher or a small-town cop.
Often, the criminal gift was a 40 4,000
pig, a lamb or a turkey. Government
These days, the National An- 3,000
ticorruption Directorate is in-
vestigating some 2,100 abuse- 20 2,000
of-office cases, many against
top politicians. Senators, par- 1,000
liamentarians and ministers
0 0
have had to stand trial, and al-
leged damages investigated 2013 ’14 ’15 ’16 ’10 ’11 ’12 ’13 ’14 ’15
last year totaled €1 billion Sources: INSCOP Research (trust); National Anticorruption Directorate (cases)
THE WALL STREET JOURNAL.
($1.06 billion). Whistleblowers Antigovernment protesters demonstrated at government headquarters in Bucharest on Sunday.
have started walking in daily.
“Things are completely dif- marched here on Feb. 5. An- justice minister who intro- leery of totalitarian rule. a celebrity adored and ab- of globalists trying to weaken
ferent now,” said the director- other 100,000 rallied on Sunday. duced the measure resigned. At the crux of that difference horred across a defining de- Romania and take its oil. It is a
ate’s chief prosecutor, Laura The protesters are railing in That hasn’t calmed the is the anticorruption director- mographic divide. view echoed on the country’s
Codruta Kövesi, an ex-basket- part against a recent emer- crowds, who demand that ate—and its leader, the 43-year- Younger, educated profes- political news television.
ball champion who has be- gency ordinance by the gov- more ministers step down. old Ms. Kövesi, the daughter of sionals marching in the capital The ruling Social Democratic
come a popular figure for her ernment that would cut maxi- Romania joined the European a small-town prosecutor. muse on her running for presi- Party says the anticorruption
role in battling corruption. mum prison sentences for Union in 2007. Millions of young Ms. Kövesi grew up watch- dent. “She’s like a symbol to fight has become too zealous.
The resistance Ms. Kövesi corruption to three years from Romanians studied, worked or ing communist bureaucrats sty- us…close to our ideal person,” Many in Parliament feel the po-
has encountered from the gov- seven—and make it all but im- traveled in Western Europe, and mie her father’s investigations. said Adriana Balan, a psychol- litical drama over graft has
ernment has sparked Roma- possible for Ms. Kövesi’s direc- returned home with higher ex- Since she took over the di- ogist. “We’ve put her on a eclipsed the business of lifting
nia’s biggest protests since the torate to have politicians ar- pectations of their government. rectorate, and became the coun- very high pedestal.” Romanians out of poverty.
fall of Communism. Demon- rested or wiretapped for To meet those demands, try’s first female chief prosecu- And yet many of those pro- “We have talk shows every
strations against corruption alleged abuse of office. money and oversight from the tor in 2013, it has sent 3,000 testers say they can no longer day, many hours, talking about
have broken out every night The protests have pushed EU boosted the authority of people to prison. At any given talk about Ms. Kövesi with anticorruption,” said Petre
since Jan. 31, each met by the government to revoke the anticorruption police. But time, many of her prosecutors their parents and family in the Florin Manole, a parliamentar-
counter-demonstrations. ordinance while Parliament those measures have collided handle 100 or more cases. countryside without an argu- ian with the SDP. “It’s the only
Hundreds of thousands debates it. On Thursday, the with an older generation still That caseload has made her ment. Many believe she is a tool topic in our society now.”
Spanish Leftist Party Hews to Antiestablishment Roots

BY JEANNETTE NEUMANN head of Podemos and handed had seemed a strong contender entists and others who worked to juggle the interests supporters deepened concerning
his allies control of 37 of the 62 to take over the government. founded Podemos in 2014. The of an amalgamation of left-lean- the best strategy to overtake the
MADRID—Podemos, the left- seats on the party’s governing Podemos’s troubles have party brought together facing groups across the country. Socialists as the party of choice
ist party that disrupted Spanish body. “The winds of change con- underscored the resilience of tions that had occupied Podemos surged in the polls for Spain’s left-leaning voters.
politics only to fall far short of tinue to blow,” Mr. Iglesias told Spain’s two establishment par- Spain’s streets and public in the year after its founding, Mr. Iglesias and his allies
electoral victory and descend hundreds of party members. ties at a time when upstarts squares three years earlier to challenging the decadeslong called for Podemos to main-
into internal feuding, opted Sun- The bitter feud between the on the far right and far left demand an end to austerity dominance of the center-right tain its outsider roots and
day to hew to its antiestablish- ponytailed Mr. Iglesias, 38 are challenging mainstream policies that many blamed for Popular Party and the center- treat the Socialists skeptically.
ment roots as party members years old, and his deputy, Íñigo leaders across Europe, with deepening a painful recession. left Socialists. But it fell short of Mr. Errejón’s faction advo-
defeated a bid by its No. 2 leader Errejón, 33, had played out in varying degrees of success. Those origins bestowed Po- expectations, finishing a distant cated a more moderate tack,
to steer a more moderate course. public for months, a frustrat- Mr. Iglesias, who won with demos, which means “We can” third in Spain’s election last calling for greater cooperation
A party congress overwhelming spectacle for an anti-aus- about 89% of the vote, was in Spanish, with an energized June. Meanwhile, divisions with the Socialists to pass leg-
ingly re-elected Pablo Iglesias terity party that two years ago part of a group of political sci- base of voters as its leaders among Podemos leaders and islation both parties agree on.
IMF Stand on Greek Bailout

Leaves Europeans on Guard
IMF is the villain of this cri- rule out any program with
sis. Eurozone officials accuse such unrealistic targets?
it of using overly pessimistic The IMF’s problem is
forecasts and being unfairly there is no reason in theory
gloomy about Greece’s capac- Greece can’t deliver such a
ity for reform. They point to surplus. Other countries
recent data that show Athens have managed, and some in
EUROPE FILE on track to deliver an unex- the eurozone will need to do
SIMON NIXON pectedly robust primary bud- so for many years.
get surplus before interest The IMF considers Greece
payments in 2016 of at least a special case because of the
As a new Greek debt crisis 2%. As far as the European weakness of its governance
gathers pace, one of the major Commission was concerned, and political system. But the
players in the drama has re- this was evidence Greece fund also accepts that it is
mained remarkably calm: the could hit its 3.5% primary hard for the eurozone to ac-
International Monetary Fund. surplus target in 2018 and knowledge this publicly.
European governments maintain it thereafter with no The fund’s response has
and institutions are desper- extra fiscal tightening. been to accept such tough
ate to resolve a standoff over surplus targets only if ac-
S
the next phase of Greece’s ome European govern- companied by far-reaching
bailout program. The win- ments would be happy reforms of its pension and
dow for a to go along with the tax systems as well as
deal is fast Commission’s forecasts, not growth-friendly overhauls of
closing with least because there is little product and labor markets,
the imminent appetite for imposing further legislated in advance as a
start of the belt-tightening on Greece. condition of financial aid.
Dutch elec- But the IMF counters that That is a high political bar.
tion cam-
paign and may not reopen
until after the French elec-
tion in May. But the IMF is
the budget data are provi-
sional and flattered by one-
off factors. It also notes that
Greek budget figures are in- N
ot surprisingly, many
Europeans—not least
in Athens and Brus-
The #1 heart care
proving impervious to politi-
cal pressure.
Some European govern-
variably revised down every
quarter. If the eurozone
wants to insist on tough tar-
sels—would like nothing
more than to get rid of the
IMF altogether. But this has
in the nation.
22 years in a row.
ments have said they won’t gets, the IMF will insist they proved politically impossible,
give more money to Greece are credibly met. too.
unless the IMF gives it The IMF’s critics are on The German and Dutch
money, too. But the IMF is stronger ground when they governments have promised
sticking to its mantra that it accuse it of inconsistency. Af- their parliaments that the
won’t participate in any new ter all, the fund has been vo- IMF would participate, and
Greek bailout unless it is sat- cal with doubts that Greece its absence would send a
isfied the numbers add up. can ever achieve a primary clear signal the numbers
Meanwhile the clock is
ticking toward two major
surplus of 3.5%, or sustain
such a surplus, or that it
don't add up. Nor will the
IMF simply walk away.
Same-day appointments available.
bond redemptions in July would be in Greece’s interests Greece is an IMF share-
that Greece is unlikely to be to do so. So why not simply holder, and a core IMF prin-
able to meet without aid. ciple is that it never hangs
A crisis meeting in Brus- up the phone.
sels on Friday failed to break If the IMF is relaxed, it is
the impasse. The IMF and Eu- because there is nothing Euro-
ropean institutions did agree peans can do to force its hand.
to demand further austerity European officials com-
measures to be legislated now plain the IMF is failing to
to ensure Athens hits its take account of the implicit
JASPER JUINEN/BLOOMBERG NEWS
short-term budget targets. solidarity the eurozone con-

But it isn’t clear whether tinues to provide Greece. But Call 1.855.299.APPT l clevelandclinic.org /heartcare
Athens is willing or able to if the eurozone wants the
deliver; meanwhile the credi- IMF on board, it will have to
tors are no closer to a deal on make that solidarity explicit.
what Greece’s midterm aus- If it wants another short-
terity targets should be, nor term fudge designed to kick
U.S. News & World Report 2016-17
how much relief is needed to the can safely down the road
put the country’s debts on a again until after this year’s
sustainable footing. Poul Thomsen, director of the elections, it will have to find
For many Europeans, the IMF’s European department a way to do so on its own.
IN DEPTH
ROADS Road Work Ahead

U.S. government infrastructure spending has waned since the late
1960s…
ered cracks on a 79-year-old
bridge between Purcell and
Lexington, about 45 minutes
south of Oklahoma City. State
Continued from Page One officials launched an expedited
borhoods and the environment. Public capital investment as a share of GDP effort to replace it. Because of
A tour through of the na- Interstate Highway National Environmental the bridge’s historical signifi-
tion’s thorniest infrastructure System created Policy Act enacted cance as a Depression-era proj-
struggles shows how these two 3.0% ect, they first needed to con-
goals are often in conflict. As a sult Oklahoma’s historical-
result, long, costly reviews and 2.5 preservation office under the
legal battles will likely confront 1966 federal preservation act.
Mr. Trump’s efforts, just as 2.0 Then officials needed to find
they delayed much of President a way to protect the Arkansas
Barack Obama’s 2009 eco- 1.5 River shiner, a threatened min-
nomic-stimulus efforts. now under the endangered-
“You would have to fix some 1.0 species act. The state plans to
of these issues” said McKinsey begin work in 2018. “It’s hard
& Co. partner Tyler Duvall, a 0.5 to explain that to our constitu-
DOT assistant secretary for ency,” said Mike Patterson, di-
policy in the George W. Bush 0 rector of Oklahoma’s transpor-
administration, “in order to get tation department, “because
the money into the system in a 1950 ’60 ’70 ’80 ’90 2000 ’10 for them it’s illogical.”
productive way.” …as GDP and productivity growth have slowed.
The president has yet to re-
veal details of his plan. On Jan. Average annual growth rate Tale of one bridge
24, Mr. Trump issued an execu- 5% As an example of how things
tive order calling for expedited should work, Mr. Porcari, the
reviews on “high priority” GDP Productivity former Maryland transporta-
4
projects. Before signing, he tion chief, cites the renovation
said: “We can’t be in an envi- of the Woodrow Wilson Bridge
ronmental process for 15 years 3 connecting Maryland and Vir-
if a bridge is going to be falling ginia. After years of lawsuits
down or if a highway is crum- 2 almost killed the project, offi-
bling.” cials revived it in 1999, inviting
Any significant new infra- environmentalists and commu-
1
structure-spending package nity groups to planning meet-
would have to clear Congress. ings to discuss how to offset
And executive orders alone 0 the new bridge’s effects.
won’t do much to change a 1950–59 ’60–69 ’70–79 ’80–89 ’90–99 2000–09 ’10–16 They agreed to restore the
well-entrenched four-decade- nearby Anacostia River, includ-
old regulatory process, said It takes longer to complete …and roads are getting older. ing cleaning up an illegal land-
Philip Howard, chairman of environmental reviews… fill. The revamped review was
Common Good, a think tank fa- Average Environmental Impact Average age of U.S. highways completed in 2000 and the
voring looser federal regula- Statement preparation times and streets new bridge opened in 2006.
tion. The White House didn’t Today, the landfill is a wetland
MELISSA LYTTLE FOR THE WALL STREET JOURNAL (2)
respond to requests for com- 10 years 30 years where wild rice and cattails
ment. Federal Highway thrive. Cormorants, herons and
8 24 egrets populate the cleaner
Administration
river.
Not so shovel-ready 6 18 In Southern California, plan-
Presidents Obama and ning for the State Route 710
George W. Bush sought to ac- 4 12 extension continues to divide
celerate projects with executive South Pasadena and Alhambra.
orders. The Obama administra- 2 All federal agencies 6 During the 1960s, the state
tion was concerned prolonged prepared by buying homes
reviews could hold back stimu- 0 0 along its proposed route. After
lus spending under the 2009 2000 ’05 ’10 ’15 2000 ’05 ’10 ’15 the 1970 environmental law,
American Recovery and Rein- Sources: Commerce Department (capital investment, GDP growth, road age);
South Pasadena sued to block
vestment Act, said Gary Guzy, Joanne Nuckols, 73, above, has been fighting the extension of Labor Department (productivity growth); Piet deWitt, Carole A. deWitt (preparation times) construction, saying the state
general counsel at the White State Route 710, below. The project was proposed in the 1960s THE WALL STREET JOURNAL. hadn’t followed the act’s re-
House Council on Environmen- view process. Residents feared
tal Quality under Mr. Obama, mits are issued. bile, which runs the new facil- tion boom eventually faced Environmental groups have the highway would split the
now a lawyer for Covington & Completing the process took ity. “When prospective backlash among people who found themselves making the town in two. Neighboring Al-
Burling LLP. an average of almost 10 years companies look at the eastern objected to the impact on same case, on the grounds that hambra argued the highway
The act devoted about $48 for major highway projects side of Mobile Bay and into neighborhoods, sensitive envi- more efficient reviews would would ease congestion.
billion to transportation, with a that received their final review Florida, the tunnel is always a ronmental locations and histor- let planners devote more en- The 1973 lawsuit touched off
priority on “shovel-ready” in 2015, up from about five topic of concern for them.” ical sites. ergy to mitigating damage, ac- a 25-year effort to revise the
projects. Getting money out years in 2005, according to a The proposed $850 million The 1970 National Environ- cording to Deron Lovaas, se- proposal, which succumbed to
the door took longer than ex- study by Piet and Carole A. de- bridge would generate $173 mental Policy Act, or NEPA, nior policy adviser at the another lawsuit in 1999 by
pected. By January 2012, about Witt, retired Interior Depart- million to $690 million annu- made planners issue environ- National Resources Defense South Pasadena.
$33.5 billion had been spent. In ment officials who have com- ally in increased economic ac- mental-impact statements for Council, an environmental Planning efforts since have
2015, Congress exempted some piled some of the most tivity, the state estimates. After their most significant projects group “I don’t think unneces- focused on a tunnel, which
bridge replacements from envi- comprehensive and frequently 14 years of reviews, it is years detailing how they would alter sary delay serves anyone.” state officials estimate would
ronmental reviews. cited data on infrastructure- away from construction. surroundings while offering Almost 100 NEPA-related generate up to $1.59 billion in
Economists say well-de- project reviews. ways to mitigate damage. NEPA lawsuits hit federal agencies net benefits over 20 years. The
signed infrastructure invest- It took 16 years to get per- gave environmentalists and every year. One, filed by North state is starting to sell the
ments could increase economic mits for the Army Corps of En- Life before 1970s conservationists a voice in Carolina environmental groups, homes it bought 50 years ago
productivity in the long term gineers to dredge the harbor in It is hard to compare project planning, allowing them to sue spent four years in court be- for the roadway.
by making it easier for busi- Savannah, Ga. At least 10 fed- timelines before and after the if they believed developers fore a resolution last year let Opponents in South Pasa-
nesses to ship products and for eral and state agencies in Geor- 1970 environmental law be- weren't properly following the the state replace the deterio- dena worry a tunnel could
employees to get to work. In gia and South Carolina cause earlier projects weren’t law. rating Herbert C. Bonner weaken the ground under its
advanced economies, boosting weighed in. Work began in subject to the same reporting Today, the law has become Bridge, which links Hatteras Is- historic Craftsman houses.
infrastructure investment by 2015. requirements. Anecdotally, it so deeply ingrained that offi- land to the mainland. “This is something that can
1% of gross domestic product In Mobile, Ala., local offi- appears projects before that cials often spend years working Since opening in 1963, the never be built,” said Joanne
can raise overall GDP by 1.5% cials say a state proposal to year moved more quickly. through every detail to avoid 2.7-mile bridge on the Outer Nuckols, 73, a board member of
four years later, an Interna- bridge the Mobile River could Ten years after the Inter- suits, even if an environmental- Banks has been scoured by a local preservation group who
tional Monetary Fund study expand business. Now, more state Highway System’s 1956 impact statement isn’t re- wind, water and hurricanes. has been fighting the road for
found. than 73,000 cars daily cram a creation, the government had quired. State officials said it has 30 years.
It can take decades to bring tunnel built for 36,000. inaugurated 21,000 Interstate “There’s a lot of defensive reached the end of its life. En- Alhambra Council member
such investments to fruition. The Port of Mobile, on the miles. That drove public capital medicine built into it,” said vironmental groups challenging Barbara Messina, 76, has been
Reviews under the National bay’s western side, opened a spending to record levels and John D. Porcari, Maryland’s a $246 million replacement advocating for the extension
Historic Preservation Act of new container terminal in helped boost the country’s pro- former transportation secre- said the new bridge would ille- since 1978. “God forbid we had
1966, the National Environmen- 2008. A less-congested cross- ductivity, according to research tary, who served in the Obama gally disturb a wildlife refuge. people like that when we had
tal Policy Act of 1970, the En- ing could entice businesses to by John Fernald, a senior re- administration and is now an Construction, begun in 2016, our major infrastructure proj-
dangered Species Act of 1973 use the port, said Brian Harold, search adviser at the Federal executive at Parsons Brincker- is scheduled for 2019 comple- ects done,” she said. “We
and other laws can involve managing director of APM Ter- Reserve Bank of San Francisco. hoff Inc., an engineering and tion. would never have gotten any-
multiple agencies before per- minals, a port operator in Mo- The postwar U.S. construc- consulting firm. In 2014, Oklahoma discov- thing done.”
CASH household operate without

cash but realized things were
tougher in rural areas, when he
struggled to shop and pay his
“I am depending on them, so
I can’t have them struggling
unnecessarily,” Mr. Limaye
said. “I am the starting point in
Continued from Page One employees at his country the [supply] chain for them to
paid or spent in cash. home. go cashless.”
These well-heeled and self- Volunteers are holding Earlier this month, a motor-
proclaimed patriots—a group camps across the country to cycle gang more than 30 riders
that includes bankers, bureau- help people open bank ac- deep roared to a stop in front
crats and bikers—are vowing to counts and teach them how to of a sari store in a busy shop-
use electronic payments so use checks, online banking and ping district of India’s capital
there will be more cash in cir- e-wallets. “As Indian IT compa- and unfurled banners. “What
ALTAF QADRI/ASSOCIATED PRESS
culation for the poor. nies we tend to do a lot outside will we make India?” shouted
As the no-cash movement the country,” said Jagdish Mi- the leader. “Cashless!” an-
plunges forward, it’s being met tra, chief strategy officer of swered the rest.
with a wave of grimly comic Tech Mahindra Ltd., software The 20-somethings sur-
videos, cheeky tweets and and outsourcing company that rounded ATMs and tried to
songs that mock the inept roll- volunteered its call centers to convince people not to with-
out of the new currency pro- answer questions. “This is the draw cash. At Sarojini Nagar
gram, which had citizens wait- time for us to contribute back.” Market, one of the city’s busi-
ing hours in line to exchange People lined up to exchange currency at a bank in New Delhi in November Companies say some people est clothing markets, the activ-
notes under constantly revised are asking basic questions such ists applauded stands that ac-
rules. Smaller notes, some with Narendra Modi. One YouTube The Bollywood stars and as “What is an e-wallet?” “How cepted digital payments and
“These poor people are the value of less than a dime, video portrayed the prime min- others have decided to make do I sign up to transfer tried to school the others.
lucky,” says a comedian playing have been sucked up to replace ister as the Terminator to out- the best of it, and are urging money?” and “How do I open a Other young men, attracted by
a member of India’s upper the bigger bills, and are being line all the evils the cash ex- others to kick their use of cash. bank account?” their matching T-shirts and
class in “The Demonetization held on to by hoarders. It could change has helped eliminate. They call themselves the “Re- Accountant Milind Limaye, sense of purpose, joined the
Circus” viral video. “They can take until the end of the year A more popular meme por- monetise India Movement.” 49, in the western city of Pune, rally along the way.
just relax at home because they for the full cash transfusion, trayed Mr. Modi as Marie An- “Going cashless is the new had lots of noncash options but At the market, vendor Mo-
don’t have any money to ex- economists say. toinette: “If they don’t have Pa- cool,” tweeted starlet Sunny still struggled because his cook hammed Alam said sales are
change.” The long-term benefit of the per, let them use Plastic!” Leone in November. and the neighborhood vegeta- the worst he has seen in 15
The South Asian nation took program is hotly debated. The daily annoyances of life Times Network, which runs ble and laundry guys didn’t years because customers don’t
the unprecedented step of forc- “How will you hide black without cash are the main fod- 10 English-language television have the ability to get paid by have spare rupees, and digital
ing citizens to turn in larger money?” asks a man sitting on der for satire. One video has a channels in India, is leading the e-wallet or credit card. payments aren’t an option for
rupee notes, equivalent to a gold throne in front of a gold goofy song and dance—with charge, hoping its viewership Mr. Limaye helped teach the him. He doesn’t have a smart-
about $7.50 and above and shelf displaying his gold tele- some of Bollywood’s favorite of more than 100 million peo- vegetable seller—he usually phone, a credit card swiping
close to 90% of the country’s phone and gold fire extin- moves—about how no one can ple, who tend to have high in- buys onions, tomatoes, chilies, machine or even a store. He
cash, in November and Decem- guisher in “The Demonetiza- find change. comes, could make a difference coriander and garlic from him sells socks—four pairs for
ber last year in exchange for tion Circus.” He jingles his The office of Rahul Gandhi, by using less cash while teach- for less than a dollar—how to $1.50—off a blanket on the
new notes. But as replacement heavy gold necklace and gold a leader of the opposition in ing others how to convert to receive the payments. But the ground. “I am just waiting for
bills were still being printed, watch, raises his gold chalice Parliament, retweeted a photo cashless transactions. cart owner needed rupees to the cash to come back,” he
people had to leave their funds with a smirk and says “cheers.” with a tangle of contradictory Times Network chief execu- pay his own supplier, so Mr. Li- said.
on deposit and take out only Others defend the program, traffic lights: “Government or- tive M.K. Anand said he had no maye had to teach the whole- —Karan Deep Singh
rationed amounts. rolled out by Prime Minister ders after demonetisation.” trouble making his Mumbai saler as well. contributed to this article.
THE WALL STREET JOURNAL. * * NY Monday, February 13, 2017 | A10A
GREATER NEW YORK

Queens Apartment Blaze Injures 14 Residents
Hefty Spending
Tough to Curb
At City Hall
De Blasio, lawmakers
Going Up, Up, Up
fortify fiscal ’18 budget New York City’s budget has been
for White House cuts; steadily increasing.
GOP rival pushes back $100 billion FY 2018
$84.67*
BY MARA GAY 80
One New York City Council

member wants to expand a 60
PETER J. SMITH FOR THE WALL STREET JOURNAL
summer-jobs program for

youth.
40
Another is seeking millions
to push the city’s bike-share
program deeper into poor 20
neighborhoods.
And another wants to in-
crease funding to legal services 0
for immigrants and adult liter- FY2003 ’05 2010 ’15
acy programs. *Mayor's preliminary budget proposal
Such is budget season at Note: Fiscal year ends June 30.
City Hall, where the budget is Source: NYC Office of Management
COLD JOB: A fire broke out Sunday in a four-story apartment building at 56-14 Waldron St. in the Queens neighborhood of Corona. expected to grow substantially and Budget
One resident suffered a serious, non-life-threatening injury; the others had minor injuries. Fire marshals are investigating the cause. for the fourth year in a row, to THE WALL STREET JOURNAL.
$84.67 billion from about $70
billion for fiscal 2014, which now what will happen in future
was negotiated before former years,” said Councilman Ju-
Grappling With the Drug Crisis

Mayor Michael Bloomberg left maane Williams, a Brooklyn
office in 2013. Democrat who has pushed for
“They are addicted to spend- more summer jobs for young
ing,” said Doug Muzzio, a pub- people. “And we should do it
lic-affairs professor at Baruch while we have it.”
BY KATE KING program despite the low par- College. “It’s their natural incli- At the New York City
ticipation rate but will make it nation as progressives to in- Housing Authority, where of-
New Jersey Gov. Chris available to all overdose pa- crease spending.” ficials fear they could see
Christie has staked his final tients, said Lou Cappelli, a Mayor Bill de Blasio and the painful cuts under Mr. Trump,
year as governor on tackling Democrat who sits on the 51-member council have en- already urgent initiatives un-
the state’s addiction epidemic, county’s Board of Freeholders. joyed years of a heady econ- der way have become even
but efforts under way show “We’re trying to find ways omy, allowing them to hire more critical, said Shola Ola-
how difficult that task is. to expand the program, talking about 16,000 employees, create toye, the agency’s chair-
BRYAN ANSELM FOR THE WALL STREET JOURNAL
Citing long waiting lists at to experts and finding the best agencies like the Department of woman and chief executive.
many treatment centers, Mr. way to put to use the limited Veterans’ Services and spend “I just want to get as much
Christie wants to increase the resources that we have,” he heavily to fight homelessness, done in this window as possi-
availability of both inpatient said. with debatable success. ble,” Ms. Olatoye said last
and outpatient treatment pro- The county allocates This year, the mayor and week. “We need to do as much
grams. The governor has $150,000 in annual funding to council Speaker Melissa Mark- now as we can.”
urged the state Legislature to the program, which is one of Viverito, both Democrats, have Paul Massey, a Republican
pass laws limiting the quantity several initiatives lawmakers sought to strike a different candidate for mayor, said Mr.
of opioids that doctors can there have tried since 2014 to tone, urging caution amid early de Blasio should have pre-
prescribe and mandating in- combat its growing heroin signs of economic uncertainty pared the city better for a po-
surance coverage for addiction problem. and concerns about potential tential downturn.
treatment. At RWJBarnabas Health, federal cuts under President “They have no plan-B bud-
“With the rest of the time Connie Greene, vice president at RWJBarnabas Health's Institute the state’s largest hospital sys- Donald Trump. About 10% of get,” he said.
that I have as governor, a little for Prevention, with Dr. Victor Almeida, chairman of emergency tem with 11 acute care hospi- the city’s economy comes from A de Blasio spokesman
less than a year, most of my medicine at Monmouth Medical Center in Long Branch, N.J. tals, substance-abuse special- the U.S. government. called the criticism “entirely
time is going to be spent on ists offered treatment to 200 In his preliminary budget hollow.”
this,” Mr. Christie said earlier patients in Ocean County who proposal last month, Mr. de “Our reserves are at record
this month in Trenton. “Trying Threat of Prison vinced him to get help. had their overdoses reversed Blasio directed city agencies to levels and because of the
to make sure that we get peo- “If I wasn’t pressured, I by naloxone over the span of find $500 million in savings. mayor’s cautious budgeting
ple access to care and treat- Motivates Addicts don’t think I would be here two years at one Ocean The mayor also wants to and aggressive savings plans
ment, trying to make sure that right now,” said Mr. Rosario, County hospital. Only two add $250 million to the $5.5 we continue to earn top
we talk, most importantly, For some addicts who have who has been clean three years. agreed to enter detox pro- billion in budget reserves and grades from ratings firms,”
about this issue in a much dif- resisted rehab, New Jersey’s Of the nearly 14,200 people grams and both dropped out increase the savings amount Eric Phillips, the spokesman,
ferent way than it’s been drug-court system has provided who have entered drug court, within a couple of days. in future years. said in an email.
talked about before.” motivation. Superior courts give state statistics show 30% com- The hospital tried a new Councilwoman Julissa Fer- De Blasio administration
Substance-abuse experts criminal defendants the chance pleted the program and 57% approach to bedside interven- reras-Copeland, who chairs officials and others have de-
agree that expanding access to to avoid prison by entering went back before a judge after tions last year, when it used a the finance committee, has fended the spending, saying
services is critical but say fig- court-supervised treatment. violating court conditions. An- state grant to hire former said the city should put aside the city needed a correction
uring out how to get addicts Norberto Rosario, a 48- other 13% were discharged for drug users who had been in even more with Mr. Trump in from the Bloomberg years.
to enter—and stay in—treat- year-old Newark native, was in reasons such as medical or recovery for at least five years the White House. They also negotiated con-
ment is a challenge in itself. and out of prison for years be- psychological reasons or immi- and trained them to hold the “We know there’s a storm tracts with the city’s labor
In Camden County, a pro- fore the threat of seven years gration proceedings. interventions, said Connie coming. We don’t know how unions that included pay
gram offers hospital patients behind bars for burglary con- —Kate King Greene, vice president of the big it’s going to be,” said Ms. raises that added billions to
who have been revived by the Institute for Prevention at Ferreras-Copeland, a Queens the budget but were largely
heroin antidote naloxone free RWJBarnabas. These recovery Democrat. praised by ratings firms.
vouchers for $15,000 of detox fered, and the kind of treat- man. He has budgeted $536 specialists met with 700 pa- Yet, Mr. de Blasio still seeks At the council, which holds
and intensive outpatient treatment that’s being offered has million for this fiscal year, a tients across five hospitals to increase spending by more large sway over the budget,
ment. Of the nearly 50 pa- to be appropriate.” 23% increase over 2016. since January 2016, and more than $1 billion in fiscal 2018, some lawmakers want to grow
tients offered vouchers since Mr. Baxter said many in the New Jersey residents seek- than 400 agreed to enter which begins July 1. And many the safety net to blunt possible
October 2015, only nine en- field no longer view total elim- ing treatment through Medic- treatment. Nine months later, council members have shown cuts under the president.
tered treatment and four of ination of substance use as the aid and state-funded services nearly half were still in treat- little taste for cutting back. “Trump just makes me want
them quickly dropped out, only measure of success. Re- see an average wait time of 18 ment. “I’m very concerned if we to expand the program more,”
county officials said. duction in frequency and days for long-term residential “The fact that we’ve been don’t expand these programs Mr. Williams said.
“Nobody makes anybody amount of drug use and asso- programs and 26 days for in- there and we understand what
get clean,” said Bob Baxter, ciated risky behaviors is in tensive outpatient treatment, they’ve gone through, that’s
who is project director for a
five-year federal study on ad-
many cases seen as a victory.
Mr. Christie increased fund-
according to state records. The
state doesn’t track wait times
90% of the battle right there,”
said Eric McIntire, RWJBarna-
Salt Shakers Stay on the Menu
diction intervention in New- ing for addiction treatment for privately funded treat- bas’s recovery coordinator,
ark. People suffering from ad- 29% between his first year in ment. who has been in recovery from
diction “have to want the kind office and the end of last fiscal Camden County plans to heroin and crack addiction for
of treatment that’s being of- year, according to his spokes- continue running its voucher 13 years.
New Jersey Senate Sets Vote on Equal-Pay Bill

ALLISON PASEK/THE WALL STREET JOURNAL
BY KATE KING referred inquiries to the fran- The bill, for example, “pro- tasks, the complaint said.
chise’s attorney, who didn’t re- vides absolutely no limitation In 2013, Ms. Lopez began
New Jersey’s attorney gen- spond to a request for com- on the amount of back pay an driving a shuttle in addition to
eral is accusing Homewood ment. The hotel’s general employee can recover when her housekeeping duties. The
Suites by Hilton in Edgewater manager didn’t respond to a re- claiming wage discrimination.” hotel paid Ms. Lopez $10 an
of paying two female cleaners quest for comment. The federal Lilly Ledbetter Fair hour for the shifts she drove
less than their male co-workers. The complaint comes as the Pay Act, by contrast, limits back the shuttle and $8.20 for her
The attorney general’s of- state Senate is scheduled to pay to two years. hours as a housekeeper, ac-
fice launched an investigation hold a vote Monday to override cording to the complaint. Ms.
after one of the cleaners, Rosa a conditional veto by Gov. Chris Lopez’s male co-workers were
Lopez, filed a complaint with Christie of legislation that paid $10 an hour regardless of New York City restaurants sociation, a trade group, sued
the New Jersey Division on would have expanded protec-
Gov. Chris Christie whether they were shuttle must place warning symbols the city in 2015, arguing that
Civil Rights, saying she was tions for female workers and vetoed the measure, drivers or housekeepers, the next to high-sodium foods on the Board of Health exceeded
fired after asking the hotel’s compensation for victims of complaint said. menus, a Manhattan appeals its authority in requiring restau-
owner about the pay discrep- discrimination. The vote will
saying it overstepped State Sen. Loretta Weinberg, court has ruled. rants to post the symbols. The
ancy. The investigation found mark the Democratic-led Sen- existing laws. a Democrat from Bergen A panel of justices from the association appealed a decision
probable cause to file a civil ate’s second attempt to over- County, said the case illustrates Appellate Division’s First Depart- by trial court judge last Febru-
complaint on both gender dis- ride Mr. Christie’s conditional New Jersey’s need for more ment wrote that the salt-shaker ary.
crimination and retaliation. veto. stringent equal-pay laws. warnings provide information Cicely Simpson, the National
“In the 21st century, the no- Mr. Christie, a Republican, Mr. Christie’s office didn’t Ms. Weinberg said that but don’t restrict what consum- Restaurant Association’s execu-
tion of any employer—let sent the bill back to the Legisla- respond to a request for com- broader back pay would make a ers can buy. The rule, enacted by tive vice president, said the
alone one that is part of a nature in May with recommended ment. big difference to low-wage em- the city’s Board of Health, re- group would explore all its legal
tional hotel chain—paying changes. At the time, the gover- According to the state’s com- ployees like Ms. Lopez. quires restaurants with at least options. Local sodium rules are
women less than men for the nor wrote that gender discrimi- plaint, Ms. Lopez was hired in “That also reflects on her 15 locations nationwide to post costly and onerous, she said.
identical work is appalling, and nation “has no place in our August 2011 and paid $8 an Social Security payments,” Ms. salt-shaker icons next to items Mayor Bill de Blasio said: “It
cannot be allowed to stand,” modern workforce” but said the hour. Her pay was increased to Weinberg said. “She will, when with more than 2,300 milligrams is smart, effective and important
Attorney General Christopher proposed legislation was too far $8.20 an hour the following she collects Social Security, get of sodium, the daily recom- to inform people of the sodium
Porrino said Friday. out of step with state and fed- year, when her son was hired at a diminished payment based on mended limit. content of their food.”
A spokeswoman for Hilton eral laws. $9 an hour. Both had the same being shortchanged.” The National Restaurant As- —Corinne Ramey
A10B | Monday, February 13, 2017 NY * * THE WALL STREET JOURNAL.
GREATER NEW YORK
Midtown Firm
Renews Lease
For Less Space
BY PETER GRANT have opted to remain after
considering moves.
A prominent New York law Others that have stayed in
firm has renewed its lease in a the area include UBS Group
Midtown office tower for less AG, 21st Century Fox and News
square footage than it currently Corp, publisher of The Wall
occupies, in the latest sign that Street Journal. Major League
businesses are using space Baseball is planning to move to
more efficiently. the space at 1271 Sixth Avenue
CLAUDIO PAPAPIETRO FOR THE WALL STREET JOURNAL (2)

Kramer Levin Naftalis & that had been vacated by Time.
Frankel LLP has signed a 15- The neighborhood of Sixth
year lease for 265,000 square Avenue and Rockefeller Center
feet in the 47-story tower at had an availability rate—which
1177 Sixth Avenue. It currently includes vacant space and
occupies about 50,000 square space coming on the market—
feet more than that, according of 12.4% in January, down
to Moshe Sukenik, vice chair- from 13.5% in the fourth quar-
man of Newmark Grubb Knight ter of 2016, according to New-
Frank, which represented mark. But that is still well
Kramer Levin in the deal. above the 9.1% availability rate
in the fourth quarter of 2007,
the peak of the last economic
expansion, Newmark said.
The trend of businesses The trend of law firms and
using real estate more other businesses using space Jeremy Browning, right, at Prolific Interactive, a mobile agency located at 77 Sands St. in Brooklyn’s Dumbo area, seen below.
more efficiently is worrisome
efficiently concerns
Brooklyn’s High-Tech Pull

for landlords because space
commercial landlords. isn’t being filled at the same
rate the city’s economy is
growing. Overall, the availabil-
ity rate in Midtown was 12% in
Law firms these days are January, compared with 8.5% BY KEIKO MORRIS Developers say they are ex-
able to accommodate the same in the fourth quarter of 2007, pecting an uptick in interest
number of lawyers in less space Newmark said. Meanwhile, av- Like many expanding tech- and leasing as the projects get
because amenities such as law erage asking rents have fallen nology companies in New closer to completion. Dock 72,
libraries have migrated online. to $81.64 a square foot from York, 2U Inc. had been on a a Brooklyn Navy Yard project
A quarter-century ago, it was $87.52 a decade earlier. hunt for office space in a anchored by co-working space
common for firms to have a le- “Even though the overall neighborhood setting sur- giant WeWork Cos., will be
gal assistant for each lawyer. economy in the city remains rounded by like-minded busi- ready for tenants to build out
Today the ratio is more like quite vibrant, that doesn’t nesses. It fi- spaces in 2017. The developers
one to seven, Mr. Sukenik said. mean every move doesn’t ef- PROPERTY nally found its behind it, Rudin Development
“Businesses can be very fectively free up a bit of spot—not in and Boston Properties Inc., are
healthy and vibrant and they’re space,” Mr. Sukenik said. the usual tech expecting activity to pick up
still taking 10% less space to The 1 million-square-foot precincts of Manhattan, but this spring.
accommodate the same num- tower at 1177 Sixth Ave. was over the bridge in Brooklyn’s Tenants are signing on
ber of employees,” he said. bought in 2007 for about $1 Dumbo area. when they can “stand on
Still, Kramer Levin’s deci- billion by a group including The education-technology floors and see the project is
sion to renew is good news for Silverstein Properties Inc. and company this week is expected real,” said Jeremiah Kane, di-
the corporate office canyon the California State Teachers’ to sign a lease for almost rector of the New York region
that runs along Sixth Avenue Retirement System. In 2014, a 80,000 square feet on the up- for Rubenstein Partners, a co-
north of 42nd Street. After the real-estate fund managed by per floors of 55 Prospect St., a developer of a 504,000-
recession, the area saw a rise UBS Global Asset Management building that is part of a 1.2 Heights buildings. agency 72andSunny signed a square-foot commercial build-
in vacancies as a number of purchased a stake in the prop- million-square-foot redevelop- To be sure, the moves don’t lease to move from about ing at 25 Kent Ave. in
tenants, such as Time Inc., de- erty. ment of former industrial add up to the mass migration 13,000 square feet at 30 Coo- Williamsburg. “The Brooklyn
parted for hipper or less ex- Chris Mongeluzo and Brian buildings called Dumbo from Manhattan some devel- per Square in Manhattan to market is a show, don’t tell
pensive parts of Manhattan. Cohen were part of the leasing Heights. In December, 2U will opers and brokers had ex- 63,000 square feet in the 19th- market,” he said.
Lately, though, some big team at Newmark that worked vacate its 20,000 square feet pected in 2016. But the batch century warehouse complex Manhattan’s Midtown South
tenants, such as Kramer Levin, on the Kramer Levin deal. of space at Chelsea Piers and of lease deals bringing compa- called Empire Stores on the office market has one of the
make the move. nies from neighborhoods such Dumbo waterfront. Media lowest vacancy rates in the
The deal is one of several in as SoHo and Union Square firms Laundry Service and Cy- U.S. Rising prices there have
the past year that are stoking suggests steady growth over cle also have signed deals to made Brooklyn’s new or like-
optimism among Brooklyn de- the next few years. relocate to Empire Stores this new developments, which of-
velopers betting that compa- “It was a much more mea- year from 40 W. 25th St. in ten come with views and am-
nies in the tech, advertising sured market than what our Manhattan. ple outdoor space, attractive.
and media sectors will choose expectations were in February Though the pace of office Brooklyn buildings generally
the borough. In all, more than of 2016,” said Michael Shenot, leasing in Brooklyn slowed last have lower asking rents, and
7 million square feet of space managing director of real-es- year, as it did throughout New companies moving to certain
have been proposed or are in tate services firm JLL. York City, the borough’s office designated revitalization areas
PETER J. SMITH FOR THE WALL STREET JOURNAL
the works to come onstream In the past few years, a market was still strong com- can receive city tax credits,
in the next two years. number of big developers have pared with previous years, further lowering costs.
“It’s a big move coming jumped into Brooklyn with sig- said Joseph Cirone, senior di- Another draw: the hordes of
from the cool part of Chelsea nificant redevelopment proj- rector at real estate services Brooklyn residents who work
to Dumbo, but I think it sort of ects and plans for new firm Cushman & Wakefield. in the tech, advertising and
celebrates how Brooklyn has ground-up towers from the Overall new leasing activity media sectors. About 90% of
not only grown but has been Brooklyn Navy Yard to down- for the year was 818,861 the staff at B-Reel, an advertis-
established as a creative town Brooklyn and Bushwick. square feet, 2.5% below the ing agency, live in Brooklyn.
class,” said Asher Abehsera, The Dumbo area, in particu- 2015 level of 839,338 square The firm will double the size
chief executive of LIVWRK, lar, has pulled a number of feet, the highest on record of its office when it leaves
which has partnered with tenants from Manhattan’s hot since 2010, when Cushman & Tribeca and relocates to 13,500
Kushner Cos. and RFR Holding Midtown South neighbor- Wakefield started tracking of- square feet in the Dumbo
The office tower at 1177 Sixth Ave. in Midtown Manhattan. to redevelop the Dumbo hoods. In 2016, advertising fice data in the borough. Heights complex in May.
PROPERTY WATCH
NEW JERSEY Cushman’s equity, debt and
ANNUAL Office Campus

Fetches $26 Million
structured finance group.
The partners bought the
building for $148 million, accord-
WATCH & JEWELRY Mack-Cali Realty Corp. has pur-
ing to public filings.
The buildings at 1300, 1350
SALE chased a 17-acre campus of three

office buildings in Red Bank, N.J.
Mack-Cali paid $26 million for
and 1400 Merrill Lynch Dr. are
fully occupied by Merrill Lynch,
which has seven years remaining
the buildings sold by M. Alfieri on its lease.
January 27th through Co., said Andrew Merin, who led They are part of an intercon-
the Cushman & Wakefield team nected, 12-building campus with
February 18th* that arranged the sale. The pur- amenities such as basketball
chase includes 100 and 200 courts, cafeterias and pedestrian
Schulz Dr. as well as 230 Half walkways, Mr. Alascio said.
Mile Rd., totaling about 280,500
square feet of space, said Mr. NEW YORK
Merin, a Cushman vice chairman.
The buildings are located near Rockefeller Group
Mack-Cali’s One River Centre, a Hires Megumi Brod
nearly full office campus also in
Red Bank, said Michael J. De- Rockefeller Group has named
Marco, Mack-Cali’s president. Megumi Brod to head its North-
The company intends to reno- east development efforts as the
vate both the newly purchased developer and landlord begins to
campus and the One River Cen- refocus on potential deals in
tre buildings, creating one cam- Manhattan.
pus with shared amenities. Ms. Brod, previously a principal
at Bedrock Real Estate Partners,
NEW JERSEY will hold a senior vice president
position and guide Rockefeller’s
Financing Lined Up development in the Northeast re-
For Merrill Offices gion, the company said.
She will oversee Rockefeller’s
An affiliate of Capital Com- existing New York region proj-
mercial Investments Inc. and ects, including the $600 million
Atalaya Capital Management LP redevelopment of 1271 Sixth
have obtained $103.6 million in Ave.
financing to acquire three office In addition to expanding
ROBERTO COIN BOUTIQUE
buildings in Hopewell, N.J., ac- Rockefeller’s development in the
Westfield World Trade Center cording to Cushman & Wake- region, Ms. Brod will scout for
Oculus | Main Level C2 field, which arranged the deal. development opportunities in
New York, NY | 212.287.1299 Barclays was the lead lender, Manhattan beyond Rockefeller
with Morgan Stanley also partic- Center, the first time in decades
*greenwich location only POIS MOI COLLECTION | robertocoin.com ipating as a lender, said John for Rockefeller, the company said.
Alascio, executive director in —Keiko Morris
THE WALL STREET JOURNAL. * * * * * * Monday, February 13, 2017 | A11
LIFE&ARTS
MUSIC
Adele Sweeps
Grammy Awards
Chance the Rapper Is Named Best New Artist
In a Recognition That Promises to Boost Subscription Services
BY HANNAH KARP
AND NEIL SHAH
BRITISH MEGASTAR Adele swept

the 59th annual Grammy Awards,
winning three of the top prizes
with her album “25” and its hit
single “Hello.”
Organized by the Recording
Academy and emceed by “Late, Late
Show” host James Corden in Los
Angeles Sunday night, the politi-
cally charged show opened simply
with the 28-year old chanteuse
singing “Hello,” which won the
prizes for song of the year and re-
cord of the year. Her “25” was
CLOCKWISE FROM TOP LEFT: MATT SAYLES/INVISION/ASSOCIATED PRESS; LUCY NICHOLSON/REUTERS; CHRISTOPHER POLK/GETTY IMAGES; KEVORK DJANSEZIAN/GETTY IMAGES
named album of the year, having
sold 8.5 million copies to date in the
U.S., according to BuzzAngle Music.
Her rival in the top three cate-
gories, R&B queen Beyonce,
flaunted her pregnant belly in a
sheer, sparkling gold gown and a
halo-like headdress as she per-
formed an ode to motherhood. In-
troduced by her own mother, the
35-year-old pop singer, who re-
cently announced that she is ex- The music industry turned out for the 59th Annual Grammy Awards in Los Angeles Sunday night. Clockwise from top left: Adele opened the show with her hit
pecting twins, sang two slower ‘Hello,’ Chance the Rapper accepted the best new artist award, James Corden hosted the ceremony and Beyonce performed an ode to motherhood.
cuts from last year’s album “Lem-
onade” and took home awards for Tidal, and Mr. West continued re-
best urban contemporary album working some of the album’s mu-
and best music video. sic for weeks after it was first is-
Adele said in one of her accep- sued last February.
tance speeches of the night that The award show’s recognition of
Beyonce was her idol. such modern releases could raise
“I want you to be my mommy,” awareness of subscription stream-
she said. ing services and potentially drive
The show grew more politically subscriptions, said Nielsen Music
charged as the night progressed, analyst Dave Bakula. That would
with rapper Busta Rhymes thank- help the music industry, which is
ing “President Agent Orange” for counting on $10-a-month stream-
his “unsuccessful attempt at the ing services such as Apple Music
Muslim ban,” while performers and Spotify AB to sustain its re-
knocked down a wall chanting “we cent growth as CD and download
the people.” At the end of the hip- sales continue their yearslong de-
hop collaboration, A Tribe Called clines.
Quest frontman Q-Tip called on “If I’m not an Apple Music sub-
the crowd to “resist,” a word that scriber, I’m probably not even
also appeared on an armband aware of this record,” said Mr. Ba-
worn by pop star Katy Perry. kula, referring to “Coloring Book.”
Spotlighting the growth of The Grammy telecast, he added,
streaming services, Chance the might spark an “awakening for
Rapper was named best new art- fans” because “they’re not going
ist, while his mixtape “Coloring to be able to buy it.”
Book,” was also awarded best rap An array of stars also used the
album, even though it was first night to make political statements,
released only on Apple Inc.’s with Mr. Corden—known for “Car-
streaming service Apple Music pool Karaoke,” in which he drives
and still isn’t for sale as a CD or around with musicians as they belt
even a download in Apple’s out tunes—performing a rap that
iTunes Store. The 23-year-old included the line: “with President
hip-hop artist’s mixtape beat Trump we don’t know what comes being a “time when artists must test,” a reference to demonstra- update music laws and renew
competitors including Kanye next.” go to work.” Paris Jackson, daugh- tions by Native American tribes “America’s commitment to the
West’s “The Life of Pablo,” which Singer-actress Jennifer Lopez ter of the late pop star Michael and environmental groups against arts.” In his speech, Mr. Portnow
isn’t for sale as a CD, either. That also told the crowd not to suc- Jackson, told the audience that the the Dakota Access Pipeline. said one of the country’s most im-
collection was first released only cumb to fear or self-pity, quoting world could “really use this type Recording Academy President portant exports was “American
on Jay Z’s streaming service the writer Toni Morrison on now of excitement at a pipeline pro- Neil Portnow called on Congress to music.”
PARENTING
PARENTS, YOU CAN ACE

THE SLEEPOVER
BY ANNE MARIE CHAKER movie (7:30). In the end, she says, she called
“We’re going to hang out and I the girls’ parents to ask them to
have some new nail polish,” says leave their phones at home. “It’s
AT 11 P.M. young girls’ giggles echo Grace, who adds that extra mat- so easy to go to a video on cats
through the house even though you tresses and a fort-building kit will to…something else,” she says.
already said it was ‘lights out’ three come in handy for the basement Ms. Kasten also weighed in on
times. You give in and deliver a sleepover. Grace’s movie selection, which ini-
bowl of caramel-drizzled popcorn to Her mother, Julie Kasten, a 43- tially was “Miss Peregrine’s Home
the pajama-clad gang. year-old career counselor in Falls for Peculiar Children”—a dark fan-
Sleepovers are a parent’s dread Church, Va., has also had a lot on tasy directed by Tim Burton. “I
and a child’s dream come true. said, ‘Is this a movie you want to
Parents suddenly have more chil- watch at night before bed?’” she
dren to look out for. Screaming says. They consulted Common
fills the house and listening ears
‘It’s so easy to go to a Sense Media, which rates films’ ap-
go out the window. For a child, it video on cats to… propriateness for children at differ-
is the chance to host a party all ent ages, even suggesting ones for
night long. For parents, it is 24
something else,’ says one a sleepover. Afterward, they agreed
hours of many parenting dilem- mother of a preteen. on “The Secret Life of Pets.”
mas. Do you let bedtimes go? Is Parenting experts say that it is
video-chat for an hour suddenly important to be involved—providing
OK? It is also a test of a child’s be- guidance—but letting pre-adoles-
havior, from acting polite with her mind leading up to the big day. cents feel like they are making their
grown-ups to following house For one thing: Should children be own decisions. “The ideal is ‘author-
rules amid a heady mix of hor- allowed their cellphones? “We’ve itative,’” says Laura Kastner, a pro-
mones and peer pressure. been talking about technology and fessor of psychiatry at the Univer-
After months of pleading for a sleepovers with parents of similarly sity of Washington specializing in
sleepover, Grace Kasten’s wish be- aged kids,” she says. In the fourth children and teens, which is some-
came a reality this past weekend, grade, Ms. Kasten says, some chil- where between “authoritarian” (i.e.
with two friends staying overnight dren have their own smartphones no sleepover allowed) and “permis-
on her 10th birthday. Planning took while others don’t. “Some have in- sive” (i.e. the parent disappears).
KAGAN MCLEOD
several weeks, with Grace creating ternet access and some don’t. Some One way to do that, she says is
a list of planned activities that in- parents are interested in monitor- to collaborate on planning and let
clude doing nails (4:45); personaliz- ing and others aren’t,” she says. “It the child feel like they get to make
ing pizzas (5:15); and watching a is all over the place.” Please see SLEEPOVER page A13
LIFE & ARTS

ART REVIEW
West Coast Punk-Rock Draftsman

Raymond Pettibon brings a raw, aggressive visual voice to his works, and clearly knows how to draw when he needs to.
Works by Raymond Pettibon: far left: ‘No

Title (They Are innocent?)’ (1960s/2000s);
from top: ‘No Title (To a Tune)’ (1991); ‘No
Title (It Entirely Changes?)’ (1988); ‘No
Title (1.12 Bob Gibson)’ (2015); ‘No Title (I
thank the?)’ (2005)
grandfather’s, for that matter—draw-

ing exhibition. A 1986 drawing of a
woman in the Charles Manson cult dis-
BY PETER PLAGENS
plays her nude and holding a switch-
blade knife; it’s hand-captioned “Kan-
New York sas prepares them for it perfectly,”
PEE-CHEE FOLDERS, I was surprised with the clear implication that middle
to find, are still sold in stationery America creates gullible followers. A
stores. When I was in high school back portrait—broadly speaking—of Osama
Explore Costa Rica on a Caravan fully guided tour in the antediluvian age, these paper bin Laden equates him with bedrock
carriers of quite a limited amount of Republicans of the Sen. Robert Taft va-
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homework were the choice of the
cooler guys dressed in narrow jeans
and white shirts (with packs of Lucky
Strikes showing through
the pocket to irritate the
riety; and more or less romantic state-
ments in a grid of drawings are each
undermined by the silhouette of an
erection. On the other
hand, Mr. Pettibon has a
faculty), who didn’t calmer, more benevolent
Includes all hotels, all meals, and all activities. want to be seen toting side that surfaces in his
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Day 1. Your tour begins in San José, Costa Rica. drawings—of football loves the game, and a big
players, cheerleaders drawing featuring the
Day 2. Explore the active Poás Volcano. and the like. Hall of Fame St. Louis
Day 3. Cruise the Rio Frio. Soak in hot springs. The erstwhile Los An- Cardinals pitcher Bob
geles artist Raymond Gibson is the closest Mr.
Day 4. Hike the Hanging Bridges. Pettibon—who moved to Pettibon will probably
New York in 2011—was ever get to hero worship.
Day 5. Free time to fully enjoy your beach resort. born in 1957, a year be- “A Pen of All Work” is
Day 6. Birdwatching cruise on Tárcoles River. fore I mustered out of not, however, without
secondary education, but faults, both large and
Day 7. Explore Manuel Antonio National Park. he somehow fell into, as small. Mr. Pettibon’s
a self-taught artist, what huge drawings of small
Day 8. Return with great memories. one might call a fever- surfers negotiating big
The #1 dream version of the Pee-Chee style. whole floors, and tackles (or slashes blue waves are ambitious but, com-
In Value Mr. Pettibon (whose assumed last at) everything from Elvis and the pared with everything else, empty. His
“ Brilliant, Affordable Pricing
”
Keel-billed Toucan
name derives from the nickname, “Pe- Beatles to the atomic bomb and the adding after-the-fact texts to childhood
—Arthur Frommer, Travel Editor tit Bon,” his father gave him) draws war in Iraq. The exhibition makes a drawings is uncharacteristically vain.
maniacally (his output to date is about pretty good case that Mr. Pettibon— And the video is—except as sociologi-
FREE Brochure 20,000 works) and adds reams of despite his sometimes-wearying ado- cal context for the punkish L.A. art
nicely hand-printed text from his own lescent rebelliousness—is indeed a scene of the late 20th century—border-
Call (800) CARAVAN stream-of-consciousness and such major artist. His visual voice is more line insufferable. But the most serious
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high-end sources as William Blake and
Lord Byron. The title of this exhibition
raw than, say, R. Crumb’s, more ag-
gressive than William Wiley’s, and his
misstep is simply the size of the show.
Mr. Pettibon is an artist best absorbed
at the New Museum of Contemporary impact is right up there with that of in doses much smaller than several
Art in New York—“A Pen of All his late friend Mike Kelley. hundred works. It doesn’t help, either,
® Work”—is in fact taken from Byron’s Mr. Pettibon is not a particularly to be asked by the installation to read,
poem “The Vision of Judgement.” good draftsman in any orthodox sense. without benefit of a stepladder, the
Fully Guided Tours Since 1952 Mr. Pettibon—who holds a degree His human figures are disproportioned print in drawings mounted high up on
in economics from UCLA—started out and boneless, his compositions decid- the New Museum’s walls.
by teaching math in a junior high edly offhand, his brush-and-pen work Still, Mr. Pettibon deserves to be cu-
school, but soon a visceral, anti-estab- woefully inconsistent, and his fin- ratorially rewarded for simply letting it
lishment appetite for art got the bet- ish…well, there’s usually no sense of all rip, shooting first as it were and ask-
ter of him. He first made posters for finish at all. But that’s where Mr. Petti- ing questions later. That the work in
such L.A. punk bands as the Circle bon gets his considerable clout; his the show sometimes slips from pat-
Jerks and Black Flag (the front man drawing eschews any kind of academic ented and potent Pettibon-bad to truly
for the latter was the artist’s brother, gloss, but he clearly knows how to bad doesn’t hurt the show that much.
SHOP STRAIGHT FROM Greg Ginn), then began creating stand- draw for his own purposes, like Francis It’s as unpretentiously American as a
T H E R U N WAY W I T H alone drawings, eventually and sub- Picabia or Grandma Moses knew how Pee-Chee folder.
versively inspired by everything from to paint for theirs. Genuinely enraged,
SEE IT.
Goya to Gumby, from Reginald Marsh Mr. Pettibon maintains his West Coast
Mr. Plagens is an artist and writer in
to Ronald Reagan. This retrospective punk pedigree. He can knock you back
New York.
exhibition—which fits the New Mu- on your heels more powerfully with a
seum in temperament like the prover- piece of paper in a frame than other
LOVE IT.
bial glove—is similarly inclusive. It artists can with a whole installation Raymond Pettibon: A Pen of All Work
contains some 700 drawings and lots piece of frightening detritus. New Museum of Contemporary Art,
of ancillary video, occupies three This is not your father’s—or your through April 9
BUY IT.
On February 15th, shop select accessories
and ready-to-wear items from
Michael Kors Collection
following the runway show.
Learn more on
@W S J N OT E D | @ M I C H A E L KO R S
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CLOCKWISE FROM TOP RIGHT: ROBERT BERMAN GALLERY; ARCHIVE HAUSER & WIRTH COLLECTION; REGEN PROJECTS; DAVID ZWIRNER, NY (2)
LIFE & ARTS

SIMON SIMARD FOR THE WALL STREET JOURNAL
Nessan Bermingham, above right, runs with his trainer and friend, Shane
Genakos, above left, in Boston and works a heavy punching bag, left, to
prepare for an endurance race in Argentina.
that requires lugging a heavy back- pull-ups and 20 push-ups, he will

pack, Dr. Bermingham bought a 20- do 12 pull-ups and 25 push-ups
pound HumanX weight vest that he for the next repetition.
wears twice a week during 10-mile
runs along the Charles River, The Reading
capped by a sprint up and down To get inspired, Dr. Bermingham’s
the stairs of Harvard Stadium. “I first assignment was to read Diana
get a lot of stares,” he says. Nyad’s book “Find A Way,” which
He plans to work up to a 25- offers insights into the psychology
WHAT’S YOUR WORKOUT? pound vest while increasing his of her three attempts to swim
daily mileage. He also wears the from Cuba to Florida. Dr. Berming-
weight vest while doing strength ham says he has listened to a Ted
A Race So Tough, training in the gym. To stay moti-

vated and mimic the race condi-
tions, every three months, Dr. Ber-
mingham runs five days in a row,
talk by Ms. Nyad four times.
He admires her courage and en-
durance, particularly in dealing
with jellyfish. Although he’s biked
He Needs a Year to Train no matter the weather, wearing

the vest. He starts out with 10-
mile runs and is working up to a
goal of 20 miles.
Mr. Genakos says they are using
across Tanzania and down a don-
key trail in Peru, he says the big-
gest challenge was swimming 1.2
miles in jellyfish-infested waters
during a Half-Ironman competition
the Training Peaks app to monitor in Miami. He had welts on his
300 participants from 40 coun- CEO. The company is using a gene- and tweak Dr. Bermingham’s work- body for weeks after being stung
BY AMY DOCKSER MARCUS
tries. editing technology called Crispr- out program, which started Dec. 1. so many times.
Competitors are required to Cas9 to try to cure diseases. They want to ensure he maintains
AS A SCIENTIST and business- carry their own gear on their Dr. Bermingham approached his 80% to 85% of his maximum heart The Gear
man, Nessan Bermingham spends backs. Only water and a communal longtime trainer, friend and boxing rate whenever he exercises. For sparring sessions, Dr. Berming-
most days thinking about data. rest tent are provided. The terrain partner, Shane Genakos, about cre- During the week, Dr. Berming- ham uses Cleto Reyes gloves
The numbers surrounding his lat- is rough, the weather unpredict- ating a workout to get ready for ham usually works out from 7 to ($169) and a Buddy Lee jump rope
est venture are daunting. able and the elevations a challenge the race. Mr. Genakos says that 8:30 a.m. in a home gym. On week- (around $28).
Dr. Bermingham, 44, has em- during a race that takes place when he creates workout regimens, ends, he trains two to three hours Outdoor running in Boston re-
barked on a yearlong training pro- amid the foothills of the Andes in Dr. Bermingham “always wants me a day, and tries to vary his work- quires lots of layers, mainly from
gram to prepare for the Roving Argentina. to explain the science behind it.” outs to include mountain biking, the Arc’Teryx line, including the
Race, a grinding, weeklong out- “A race like this, it’s not one I This time, Mr. Genakos told him, boxing and snowboarding. Incendo hoodie ($139). Dr. Ber-
door competition that changes lo- know I can finish,” Dr. Berming- the focus wasn’t only going to be Mr. Genakos says daily work- mingham prefers Asics GT-1000
cation every year. In November, Dr. ham says. “The uncertainty is very on the number of pull-ups and outs change but focus on the running shoes ($100), and an es-
Bermingham heads to Patagonia, motivational.” push-ups or miles run, but also glutes, improving flexibility and sential piece of gear for any work-
where he will run 25 miles a day Science is all about uncertainty, training to push through blisters, building up strength in the core, out in Boston, a Red Sox baseball
over rough terrain for four days— particularly at startups like Intellia sore muscles and fatigue. shoulders and biceps. All the cap.
followed by a 50 mile overnight Therapeutics Inc., the biotech com- workouts are built on the concept Dr. Bermingham says in the Pat-
stretch. (The final day is a mere 6 pany in Cambridge, Mass. where The Workout of reverse drop-sets, meaning that agonia race he will also make room
miles.) Organizers expect 250 to Dr. Bermingham is a founder and To train for a long-distance race if Dr. Bermingham starts with 10 for his go-to treat, Snickers bars.
SLEEPOVER
Continued from page A11
a lot of decisions. “Things
like, ‘Should we have the
popcorn at 7 or at 8?’ ” says
Dr. Kastner, author of “Wise-
Minded Parenting.” “Or,
‘Should we put the air mat-
tresses over here or there?’ ”
She advises parents pay
attention to the children
your child hangs out with
because those personalities
may intensify at the slee-
pover. In the carpool, she ad-
vises parents “lay low, wear
beige” to listen and get a
sense of the dynamic in the
social group.
“You need to know a little
bit to intervene when things
go south,” she says. Bad
things can happen, such as
unwanted picture-taking to
social-media oversharing.
Dede Parker, a 48-year-old
modeling agent in Los Ange-
les, has hosted a handful of
sleepovers for her 10-year-
old daughter Frankie. She
tries to check in every hour,
by poking her head in and Grace Kasten planned her slumber party schedule to the minute.
saying things like, “What are
you girls doing out here?” game of “would you rather”
Or, “What’s up?”
“The answer is usually
involving a parent’s cellphone.
The incident provided an
SLEEPOVER Poetry in Paint
‘nothing’ or they barely even opportunity for mother and SOLUTIONS
respond,” says Ms. Parker. daughter to talk about tough Camille Corot
But the message she is try- topics like peer pressure and
Let your child plan with Revered artist. Luminous palette. Tranquil
ing to convey is “I’m still internet content. “We had a
you. Set a schedule
around,” she says. long talk about what’s appro- scene. One of the world’s most important
of activities.
Patti Cancellier, education priate and not appropriate,” artists, Camille Corot’s contributions to
director at the Parent En- she says. Choose a movie the history of art are immeasurable. In
couragement Program in Joanna Warden, a Wash- in advance.
Kensington, Md., which runs ington, D.C.-area, health- this monumental, original work entitled
parenting classes, suggests care consultant hosted a Ask friends to leave cell Le Passeur (The Ferryman), Corot deftly
an easy way for parents to “sleep-under” for her phones at home or to turn
captures the monumentality of the
keep tabs on sleepovers with- daughter Emily’s eighth them over to the host’s
out appearing intrusive is to birthday last month, giving parents for the night. French landscape with his renowned
serve food that requires “a her daughter the excitement lyricism and impressionistic luminosity.
Make snacks that
certain amount of upkeep and and anticipation of a slee- require you to check in Acclaimed as one of the world’s greatest landscape painters and widely
maintenance,” such as tacos, pover—without anybody ac- and replenish. regarded as the first Impressionist, Corot’s paintings served as inspiration for
where meat and toppings get tually sleeping over.
frequently replenished. Eight second-grade Get to know the
entire generations of artists who followed him. Signed (lower left). Canvas:
“It allows you in an ac- friends came at 5:30 p.m. on personalities of your child’s 36”h x 521/2”w; Frame: 453/4”h x 62”w. #30-5760
ceptable way to go in and a Saturday evening in their friends in advance, so
freshen up the food,” she pajamas. They sang karaoke, you can be smart about
says. “Don’t comment or join played with temporary tat- whether to intervene if
in on the conversation. But it toos, ate ice cream sundaes, the party goes south.
gives you the chance to decorated pillowcases and
check in.” snuggled in sleeping bags. Talk about what is
When your child stays at Then, everyone left at 8 p.m. appropriate with your child
someone else’s house, a par- “The girls thought it was in advance of a party.
630 Royal Street, New Orleans, Louisiana • 877-677-2801 • [email protected] • rauantiques.com
ent has far less control. Dana so novel and cool to go out Consider a “sleep-under,”
Palmieri, a stay-at-home mom to a nighttime birthday where guests come in Since 1912, M.S. Rau Antiques has specialized in the world’s finest art, antiques and jewelry.
in Sanford, Fla., picked up her party,” says Ms. Warden. Backed by our unprecedented 125% Guarantee, we stand behind each and every piece.
JULIE KASTEN
pajamas, hang out in

9-year-old daughter Maddison “But they weren’t ready for sleeping bags, but go
from a sleepover that esca- a sleepover, and neither home at night before bed.
lated uncomfortably into a were we.”
SPORTS
ETHAN MILLER/GETTY IMAGES

UFC president
Dana White,
center, separates
Nate Diaz, left, and
Conor McGregor.
UFC | Jason Gay
Dana White Continues the Fight

When the life-chang- won the race? White House. White believes the UFC is well- this exists on the women’s side
ing deal came together, It was then White realized: he He also slyly noted he’d had a positioned to reach younger audi- without [her].”
Dana White admits he didn’t feel like he’d won the race. nice streak playing blackjack. ences. He said he’s taken motiva- White prides himself on such loy-
briefly fell apart. Not yet at least. “I’m on a run right now that is f- tion from chatter that the league’s alty. It was the reason White—who
Last summer, a group “I feel there’s so much more to --ing epic,” White said, smiling. “I’m new owners paid too much for the said he is not a Republican, and
led by the talent agency WME-IMG do in this sport,” he said. up, like, a million three.” UFC, and he’s eager to prove the voted for Obama in 2008—chose to
purchased the Ultimate Fighting White sat back in his chair. It was The humble early days when skepticism wrong. speak on behalf of then-candidate
Championship for $4 billion—mak- Friday afternoon, Feb. 10, at a TV White worried about keeping the “I kind of live for that,” he said. Trump at the GOP convention, de-
ing White, who held a chunk of the studio in midtown Manhattan. The UFC afloat felt like ancient history. It helps that in McGregor, the spite a lot of advice to stay away
company primarily owned by his UFC boss was dressed in trademark On the verge of collapse when the UFC currently has a brash, loqua- from his friend’s campaign.
friends Lorenzo and Frank Fertitta, casual attire: jeans, sneakers, and a Ferrtitas bought it for $2 million in cious talent who has become not “Everybody told me not to do it,”
a very wealthy man. White’s per- grey long sleeved baseball shirt. 2001, the brand’s reach is now only one of the most magnetic stars White said. “That guy’s never been
sonal haul was reported to be north The next night, White would be global. White said he is particularly in MMA, but in sports, period. “A anything but good to me, he’s ask-
of $350 million. in Brooklyn for a UFC card at Bar- focused on developing the UFC in unicorn,” is how White describes ing me to come speak, and I’m go-
And yet the sale provoked a kind clays Center, the league’s second Russia and China. the 28-year-old, who is ruthless ing to tell him no? No way.”
of existential crisis for the colorful, sold-out event in New York since At the same time, mixed-martial with both his mouth and inside the The night of the election, White
blunt-tongued president of the the state lifted its controversial arts are not immune to the issues UFC “Octagon.” was in New York City, celebrating
mixed-martial arts league. prohibition last year. facing every sport as they try to At the moment, McGregor is his wedding anniversary with his
“I was a mess,” White confessed. adapt to changing audiences and waiting on the birth of a child with wife, Anne. After dinner, they
What would White chase now? habits, especially with television. his longtime girlfriend, Dee Devlin, headed back to the Peninsula Ho-
The head-shaven former boxer with White joked about how, as a kid, but is on track to fight the winner tel—where Hillary Clinton was stay-
Boston roots, now 47, had spent
After a giant sale and he raced home by 8 p.m. to watch of March’s fight between Khabib ing, as it turned out—and watched
more than a decade and a half re- payday—and a surprise his favorite show, the highway mo- Nurmagomedov and Tony Ferguson, the results come in.
lentlessly selling, pushing, and ca- torcycle cop program “CHiPs.” By White said. Regarding the relentless In the early hours of the morning,
joling a nascent combat sport from
speech for Trump, the contrast, White said his teenage speculation that McGregor might White’s phone rang. It was Trump
the margins into the mainstream. UFC boss is reenergized. sons don’t watch TV, at all, prefer- box Floyd Mayweather, White said son-in-law Jared Kushner, he said.
The mega sale was a confirma- ring devices to traditional cable, both men were “very, very good at “He said, ‘We’re going to win this
tion of White’s success. The UFC and watching content whenever keeping themselves relevant when thing, man…meet us at the Hilton,’”
had arrived. Yet to White, it also they want. they’re not doing anything.” White recalled. “I was in my under-
felt like an end. He compared the “We’re rolling, man,” White said, “I think all of cable is going to fall As for Rousey, White acknowl- wear, laying in bed! I jumped up,
sale to a divorce. He didn’t like talk- enthusiastically. “I’ve got a whole apart,” White said. “These kids don’t edged it was difficult to again see got dressed and went down there.”
ing about it. list of potential new stars who are even have cable, the younger gener- the breakthrough women’s cham- As for Trump’s contentious
“The money side f----ed me up, up and coming.” ation. And when I say younger, I’m pion lose another one-sided fight, first month in the White House,
too,” White said. “People ask me, He was back at it, reenergized, talking 28, too….28-year-olds, who this one in late 2016 to Brazil’s White—who knows a thing or two
‘Now that you have all this money, after a wild six months for the UFC: don’t have cable television.” Amanda Nunes. “To watch someone about tough talk and public bat-
what are you going to do?’ Well, a landmark 200th event, the dra- This was a pronounced change. you care about lose that way is al- tles—urged everyone to “take
it’s not like I didn’t have money matic sale, the New York debut, the White recalled how essential cable ways tough,” White said. At the a deep breath.”
before. I wasn’t some dude continued ascension of Irish fighter was to himself and his roommate in same time, Rousey’s impact is unde- “His style is a style that’s never
who…hit the lottery. There’s noth- Conor McGregor, and another cruel Boston, decades ago. niable, White said. Saturday’s pay- been seen in the Presidency,”
ing else I need or want.” loss for White’s friend, the women’s “If you were flat f---ing broke, per-view event in Brooklyn was White said. “And to be honest with
White said his friend, skate- MMA pioneer Ronda Rousey. didn’t have a dime, you had every headlined by a pair of women fight- you, as weird as this sounds, his
boarder and TV personality Rob Meanwhile, White had spoken at f---ing channel on cable,” he said, ers. Germaine de Randamie beat style is the style of the new world
Dyrdek, asked him: How do you the Republican National Conven- laughing. “You couldn’t live without Holly Holm in a unanimous decision. we live in.” The man who helped
get up and put on your shoes to tion, and watched his longtime cable. These kids, they can’t live “This is the f---ing house that reinvent fighting in America
run the race, when you’ve already friend Donald Trump capture the without their phones.” Ronda built,” White said. “None of sounded certain. “It really is.”
Weather The WSJ Daily Crossword | Edited by Mike Shenk

Shown are today’s noon positions of weather systems and precipitation. Temperature bands are highs for the day.
Edmonton
d <0 1 2 3 4 5 6 7 8 9 10 11 12 Down 28 Painter Paul
50s
0s 1 Fiction’s 29 Rough guess
Vancouver
V Calgary
C l y 10s 13 14 15
counterpart
10s 30 Egotist’s focus
Winnipeg
ip 16 17 18
Seattle
ttl 20s 2 Soothing
31 Jai ___
Portland
Por
P tl d 20s 30s 19 20 21 plants
Helena 40s 30s Ottawa
Montreal 32 Material for
Bismarckk 40s 3 Smelled to high
Billings Augusta
A 22 23 24 25 the Empire
Eugene
g Boise
i heaven
Mpls./St.. Pa
Mpls./St Paul Toronto
T Albany
A b y Boston 50s State Building’s
26 27 28 29 4 Sub shot
30s Hartford
rtford 60s facade
Pierre Sioux
oux FFalls
ll
Milwaukee
k Detroit
t Buffalo
Chicago
Ch
Chic g Cleveland
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Philadelphia
Phhil d lphi
h imperfect Hank Aaron
Omahah Pittsburgh
Pittsb g h 80s 35 36 37
Sacramento
Denver p g d Indianapolis
Springfield
Spring 6 JFK guess
San
an Francisco Kansas St.. Lo Washington
h
hi
ington
gton D.C.
D C 90s 39 Voted into
Colorado
C l d Topeka
To p City
Charleston
Louis Charles
Ch l t 38 39 40 41 42 office
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p 40s LLouisville
Lou
Richmond
h d 100+ 7 Goblet part
Vegas Wichita
hit
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h ill Raleigh
l igh
h 43 44 45 8 It involves 41 Chili con ___
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Los A
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C h l tt
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80s Phoenix
Ph Albuquerque
A b q q Oklahoma
k ho
om
m a City
City Columbia
C b
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Atl t 44 “Zip-a-Dee-
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T c 30s Birmingham
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F h Dallas
D ll Jackson
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b 70s Jacksonville
k 55 56 57 58 10 “If memory 45 Gets better
Houston 70s
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A ti
Orlando
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0s 10s New
w Orleans
ew
80s San
n Antonio
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20s Anchorage
A h g Honolulu
l l 80s Showers Flurries 62 63 64
30s 40s 80s Miami 12 Hourglass fill 49 Ominous
70s
14 Ellis of the memo from the
Ice
PLAY GROUNDS | By Harold Jones Pacers boss
U.S. Forecasts City
Today
Hi Lo W
Tomorrow
Hi Lo W City
Today
Hi Lo W
Tomorrow
Hi Lo W
Across 26 Outermost 43 Team 17 Easy basketball 50 “We Three
s...sunny; pc... partly cloudy; c...cloudy; sh...showers; 1 Like bullet fences where commander two-pointer Kings” subjects
Omaha 52 27 pc 50 25 s Frankfurt 47 32 s 50 31 s baseball is where football is
t...t’storms; r...rain; sf...snow flurries; sn...snow; i...ice trains 51 Guinness of
Orlando 77 58 sh 78 59 pc Geneva 49 36 pc 52 35 s 21 Boxer’s punch
Today Tomorrow Philadelphia 44 28 s 45 33 s Havana 82 57 s 86 58 s played? played? “Star Wars”
City Hi Lo W Hi Lo W 5 Net material 23 Graceful
Phoenix 73 56 pc 74 56 pc Hong Kong 67 60 s 68 61 s 30 Cut-and-dry 46 Clothing line
Anchorage 35 31 sn 38 27 sn Pittsburgh 36 24 sf 45 32 s Istanbul 41 34 c 38 33 pc 9 Hydroelectric antelope 52 Flank
Atlanta 63 38 s 67 45 pc Portland, Maine 31 16 sn 30 17 c Jakarta 87 77 t 87 74 t
business 47 Audiophiles’
structures 24 Barrel builders 54 Amorous
Austin 69 58 sh 62 39 r Portland, Ore. 49 31 pc 51 39 pc Jerusalem 49 41 r 48 39 sh 33 Robin Hood’s investments
Baltimore 45 27 s 49 33 s Sacramento 63 41 pc 65 44 pc Johannesburg 82 62 pc 82 60 t 13 Choir member archer
beneficiaries 50 Tennis contests 27 ___ Strips
Boise 43 25 s 44 27 s St. Louis 51 39 pc 57 33 pc London 48 35 s 51 43 pc 57 Fresh
Boston 34 22 sn 34 22 pc Salt Lake City 40 24 s 45 28 s Madrid 54 39 sh 53 37 pc 14 Not glossy 34 Shaker grains (bug-killing
Burlington 26 16 sf 27 22 c San Francisco 59 49 pc 63 50 pc Manila 81 70 pc 82 70 pc
53 “Life of Pi” brand) 58 Gangster’s gun
15 China setting 35 Manning in the director
Charlotte 63 33 s 63 44 pc Santa Fe 40 27 sn 46 24 pc Melbourne 68 58 c 71 53 pc
Chicago 45 31 s 45 26 s Seattle 53 35 pc 55 43 pc Mexico City 75 48 pc 74 46 pc 16 Sequence NFL 55 Heaps Previous Puzzle’s Solution
Cleveland 35 28 pc 49 30 s Sioux Falls 49 27 s 45 23 s Milan 49 37 sh 51 35 c of games where I C B M P S S T G A L L
Dallas 60 44 c 50 42 r Wash., D.C. 48 31 s 51 38 s Moscow 24 22 sn 39 25 sn 36 Most 56 Pioneer where S O L I L L A MA A R E A
tennis is played? successful song B L O N D I E B UM S T E A D
Denver 51 23 pc 53 27 s Mumbai 91 75 pc 94 76 pc boxing is played? N A T I O N A L G A L L E R Y
Detroit
Honolulu
39 27 s
81 70 s
45 28 pc
82 70 pc
International Paris
Rio de Janeiro
52 38 s
97 76 pc
55 43 s
93 77 s
18 Oven for firing of 2014
59 Heredity unit
MO U S E O I L S
Today Tomorrow pottery 37 “Glee” star

T R AM S P AWN
Houston 72 60 c 70 49 r Riyadh 75 51 s 69 57 pc H A I R U S A G E T R E
Indianapolis 45 31 s 50 29 s City Hi Lo W Hi Lo W Rome 61 43 pc 60 41 s 19 Tough pickup ___ Michele 60 Notions S C O T T I S H T E R R I E R
T O T A S S E S E L L A
Kansas City 50 31 c 53 28 s Amsterdam 41 29 s 43 31 s San Juan 81 73 sh 82 72 sh for bowlers 38 Flimsy, as an 61 Nautilus captain I G O R WE T L Y
Las Vegas 69 49 s 69 49 pc Athens 48 39 c 48 36 pc Seoul 41 22 sh 39 22 s B A S E I F I D O
Little Rock 57 39 pc 50 40 r Baghdad 63 45 pc 66 45 pc Shanghai 57 34 s 58 40 s 20 Specialized (in), excuse 62 Coffee option C U B A N R E V O L U T I O N
Los Angeles 75 56 s 71 53 pc Bangkok 89 69 s 89 71 s Singapore 84 77 t 82 76 t in college 40 Downwind, 63 Small
A S B A D A S B A D C A N B E
S T A C S T A L E L A O S
Miami 83 66 s 83 65 pc Beijing 54 25 s 47 24 s Sydney 79 66 s 74 67 pc S A S S H A G S S T E T
Milwaukee 44 33 s 44 27 pc Berlin 34 24 s 41 30 s Taipei 67 56 pc 69 57 pc 22 Doubting sort to sailors salamander
Minneapolis 45 28 pc 40 22 pc Brussels 47 32 s 49 37 s Tokyo 50 37 s 49 37 pc The contest answer is BINGO CARDS. By taking
25 Running 41 Paparazzi 64 Very, at the letters of the theme answers indicated by the
Nashville 55 35 pc 57 40 c Buenos Aires 74 62 t 78 64 c Toronto 28 18 sf 37 25 c
New Orleans 69 54 pc 73 59 c Dubai 81 72 c 80 70 sh Vancouver 46 33 s 48 40 pc behind target Versailles two digits of the clue numbers (like first and sixth
New York City 39 26 pc 38 32 s Dublin 49 42 pc 48 42 r Warsaw 26 16 pc 35 25 s letters of 16-Across, B and I), you can spell the
Solve this puzzle online and discuss it at WSJ.com/Puzzles.
s
Oklahoma City 52 36 r 47 32 r Edinburgh 44 35 c 47 36 c Zurich 43 28 pc 46 30 s contest answer.

OPINION
Trump’s ‘So-Called’ Judgment BOOKSHELF | By Stephen J. Morris
By Sai Prakash
And John Yoo
The fundamental right to criti-
cize government applies no
acting “not as a judicial body,
but as a policy-making body.”
temporary suspension of im-
migration from seven coun-
Crusading for the
P
less to jurists than to presi- He tried to persuade Congress tries. Mr. Trump still has the
resident Trump can’t
seem to control his im-
pulse to question his
critics’ legitimacy. On Twitter
dents or members of Congress.
Mr. Trump’s attacks on the
judiciary are mild compared
with some of his predecessors’.
to add six seats to the high
court so that he could pack it
with pro-New Deal justices.
Lawmakers refused.
opportunity to prevail on the
merits. He hasn’t lost the
case—at least not yet.
The Trump administration
Communists
he denounced the “so-called
judge” who issued a tempo-
Upon assuming the presidency,
Thomas Jefferson ordered all
Nor was Mr. Trump’s imme-
diate predecessor shy about
will often appear in court over
the next four or eight years. It
Hell No
rary restraining order against prosecutions under the Sedi- attacking the courts. President will lose plenty of cases, be- By Tom Hayden
his immigration policy. Then, tion Act dropped and par- Obama inveighed against Citi- cause, like its predecessors, it (Yale, 159 pages, $25)
as the Ninth U.S. Circuit Court doned everyone convicted un- zens United v. Federal Election will push the legal envelope. If
of Appeals reviewed the case, der it, even though the courts Commission, a landmark free- the president publicly vents Tom Hayden was a radical left-wing American activist
he complained that “courts had upheld its constitutional- speech case, during his 2010 every time he loses a ruling, who died in October 2016. He initially became famous as the
seem to be so political.” He ity. Andrew Jackson reportedly State of the Union address, his complaints will recede into principal author of the 1962 Port Huron Statement, a found-
declared that even “a bad with several justices sitting background noise. ing document of the Students for a Democratic Society,
high school student” would right in front of him. Two Questioning judicial deci- which promoted a vague notion of “participatory democ-
understand why his executive It’s legitimate to years later, when the court sions, and even the judiciary’s racy” and criticized U.S. Cold War foreign policy. He became
order was legal. When the was considering a constitu- legitimacy, is entirely proper. more famous as an anti-Vietnam War leader, first by making
Ninth Circuit ruled against criticize the judiciary, tional challenge to the Patient But a wise president will re- a pilgrimage to Hanoi in 1965, next by helping to organize
him, he called it “a disgraceful but unwise to do it Protection and Affordable Care serve such attacks for extraor- what became violent demonstrations at the Democratic
decision.” Act, the president publicly de- dinary matters of state involv- Party’s 1968 convention in Chicago, and later by marrying
Meanwhile, Judge Neil Gor- so injudiciously. clared that it would be an “un- ing the highest constitutional and working with Jane Fonda to defeat American policy in
such, Mr. Trump’s Supreme precedented, extraordinary principles. To do otherwise Vietnam. The consistent obsession of Hayden’s life was what
Court nominee, told senators step” to strike it down, be- risks dissipating the execu- he considered his virtuous and courageous role in opposing
that he found “any criticism of said of the chief justice that cause it was passed by a ma- tive’s energy, weakening the the Vietnam War policies of
a judge’s integrity and inde- “John Marshall has made his jority of Congress. Mr. president’s agenda, and wast- the United States.
pendence disheartening and decision; now let him enforce Obama’s critics saw that as an ing his political capital. When In “Hell No,” his rambling
demoralizing,” according to a it.” Jackson vetoed reauthori- attempt to pressure Chief Jus- criticizing the Supreme Court farewell testament, Hayden at-
statement on his behalf. zation of the Bank of the tice John Roberts—who ulti- for upholding the Bank of the tempts to rescue the antiwar
Yet the president has United States because he be- mately supported the adminis- United States, declaring Dred movement from what he sees
crossed no constitutional red lieved the Constitution did not tration’s position. Scott a slave, or striking down as denigration and obscurity.
lines. True, federal judges en- give Congress the power to But if presidential attacks the New Deal, presidents were He is particularly angry at the
joy unique constitutional pro- create a bank, despite the Su- on the courts are nothing new, advancing constitutional agen- lack of respect for the “peace
tections and thus a measure of preme Court’s decision to the the history also underscores das worthy of a fierce attack activists” who opposed Ameri-
independence. They serve for contrary in McCulloch v. the smallness of Mr. Trump’s on the courts. Mr. Trump is can policies, in light of a new-
life so long as they maintain Maryland (1819). vision. Jefferson, Lincoln and upset about losing a minor found public respect for the vet-
“good behavior.” Congress and Our greatest presidents FDR knew when to speak and procedural test of a temporary erans of the Vietnam War. “Hell
the president can never reduce have gone even further. Abra- when to keep silent. They in- executive order. If he doesn’t No” has something of a stream-
their salaries. ham Lincoln declined to apply voked the great powers of the learn to be more judicious, of-consciousness quality, as the
But there is no law that si- the court’s infamous 1857 deci- presidency to oppose the Su- we’re in for a long four years. author jumps from one topic to
lences the American people, sion in Dred Scott v. Sandford preme Court only when funda- another, from declarations about the politics
including the president, or to any new cases. At the out- mental constitutional ques- Messrs. Prakash and Yoo of the war to personal memoir, with no analytical or narra-
shields judges from criticism set of the Civil War, he defied tions were at stake: the are law professors at the Uni- tive coherence. The writing is full of assertions of his move-
outside the courtroom. No Chief Justice Roger Taney’s or- punishment of political dis- versity of Virginia and the Uni- ment’s virtue and concern for the truth.
principle of democracy or judi- der releasing a Confederate sent; secession and slavery; versity of California, Berkeley, Yet for someone with such an ostensible concern with
cial independence demands prisoner. Franklin D. Roosevelt Congress’s power to regulate respectively. truthfulness, the author reveals his own knowledge of the
that we check our tongues, accused justices who struck the economy. The occasion for Vietnam War to be grotesquely defective. In discussing the
pens or tweets because the ob- down his New Deal of living in Mr. Trump’s fury is a tempo- L. Gordon Crovitz is away. war’s origin Hayden trots out discredited sources from
ject of critique wears a robe. the “horse-and-buggy” era and rary restraining order of a 1965, like I.F. Stone, who claimed that the Viet Cong insur-
gents were not dependent on Hanoi but were an indepen-
dent force relying on captured South Vietnamese weapons.
Texas and the Real Forgotten Man Hayden seems blissfully unaware that more than 30 years
ago the Hanoi leaders themselves admitted that, following a
1959 decision by the politburo, they had started the war.
Donald Trump Roosevelt did during the lost between 1994 and 2014 Mr. Cañas notes that the The men who infiltrated the south from the north carried
pledged in his 1930s. Both can be viewed as “as a result of increased im- blue-collar workers most af- American weapons captured not by the Viet Cong from the
inaugural ad- champions of the fellow who ports from Mexico and Canada fected by Mexican imports South Vietnamese but by the Chinese from Americans in
dress to stand has fallen on hard times and or due to shifts in produc- have “experienced substan- the Korean War.
up for the for- cannot seem to recover. The tion.” Texas, Mr. Cañas writes, tially lower wage growth than There is a fundamental self-contradiction in Hayden’s
gotten man Trumpian approach to helping was the second most-affected their counterparts in other in- analysis of the Vietnam War. He incessantly praises the anti-
AMERICAS and woman. the “little guy” would also be state—in absolute numbers of dustries.” But he observes war movement for bringing the war to an end through its
But if the 45th familiar to FDR: Make the jobs lost—behind North Caro- that the metropolitan areas protests and lobbying. But at the same time he wishes to
By Mary
president de- economy less free. lina and ahead of California. that lost the most jobs due to condemn those who blame the “peace movement” for Amer-
Anastasia
stroys the Yet as Amity Shlaes ex- Texas border cities, where Nafta have benefited the most ica’s defeat: “The Vietnamese never relied upon the Ameri-
O’Grady
North Ameri- plains in her 2007 book, “The manufacturing had been from increases in foreign di- can peace movement to deliver a victory for them, as long
can Free Trade Forgotten Man,” that term “heavily concentrated in low- rect investment. They also insisted by American neoconservatives.” Yet Hayden seems
Agreement in an attempt to originated with Yale professor value-added industries,” were benefit from “rising living disingenuous when he claims that the aim of the “peace
rescue some Americans, mil- William Graham Sumner. In hit hard. standards on the Mexican side movement” was merely ending the war. Neither he nor his
lions more—including many his 1883 essay the forgotten of the border,” i.e., new cus- fellow radicals wanted the war ended with South Vietnam
who voted for him—could be man is the one who is passed tomers with money. remaining as a non-communist independent nation, on the
added to the nation’s economi- the bill—unnoticed—when do- If Trump destroys Like the rest of the country, model of South Korea.
cally forgotten souls. gooders propose “measures of Texas’ employment is shifting
The very red state of Texas relief for the evils which have Nafta, millions from manufacturing to “other
could suffer the most. Over 23 caught public attention.” of Americans will sectors such as business ser- When Joan Baez organized a petition to protest
years it has worked to adapt Sumner didn’t name vices,” Mr. Cañas writes. The Hanoi’s racist pogrom against Vietnam’s ethnic-
to open commerce with its names. He simply described pay the price. state’s manufacturing employ-
southern neighbor. Production the injustice of A and B get- ment is down 9% since Nafta Chinese minority, Hayden defended Hanoi.
sharing in manufacturing with ting together to help X with implementation but manufac-
counterparts across the Mexi- some new law. C isn’t in on Yet with more competition turing output grew 4.1% per
can border has boosted pro- the plan but he carries the came increased trade, invest- year between 1997 and 2015. The most illuminating part of “Hell No” is Hayden’s ac-
ductivity, and a sharp increase burden. “Such is the Forgot- ment and technological “Manufactured goods ex- count of the lobbying of Congress that the “peace move-
in U.S.-Mexico trade at Texas ten Man,” Sumner wrote. “He change, all of which helped reports supported an estimated ment” undertook from 1973 to 1975. Several thousand activ-
land and sea ports has gener- works, he votes, generally he shape the Texas economy. And 990,000 jobs in Texas in ists in certain key states pressured congressmen to cut off
ated big export gains for the prays—but he always pays— cities along the border “went 2015,” the report says. The funding for South Vietnam, and though Hayden is ambigu-
Lone Star State. yes, above all, he pays.” on to gain far more employ- state “gained” more than four ous about the effects of the lobbying, which he largely di-
Nafta has made Texas In Mr. Trump’s war on ment than what they lost” due million jobs from 1994 to rected, its success in fact turned out to be the key factor in
more globally competitive. It globalism, Texas is brimming to changes from Nafta. 2015, a period of rising auto- Hanoi’s victory. As North Vietnamese Gen. Van Tien Dung
hasn’t happened without with Cs—hard-working Ameri- Texas’ exports to Mexico— mation and free trade, while wrote shortly after the war’s end, congressional aid cut-
some pain, particularly in cans who have adjusted to measured not by where the real per capita incomes grew backs meant that South Vietnamese President Thieu was
border cities. Yet without the freer trade and now find that products are made but by to $47,000 from $30,000. forced to fight “a poor man’s war.”
agreement, Texas arguably A and B want to change the where their journey abroad be- Mr. Trump’s proposal to The fact is that Hayden’s life was in large part a crusade
would have found it more dif- rules as a favor to X. There gins—increased by 236% from build new barriers to trade for the cause of the Vietnamese communists. He returned
ficult, on the employment are millions more Cs all over 1994 to 2015. “A significant with Mexico ignores the harm from his trip to Hanoi in 1965 singing the praises of North
front, to adjust to the acceler- the U.S. share of this trade,” Mr. Cañas that is sure to come to the Vietnam. At Bratislava, Czechoslovakia, in 1967, he was at
ation in manufacturing auto- Federal Reserve Bank of writes, “is in intermediate armies of American factory the center of a meeting of two dozen American peace activ-
mation that hit the U.S. dur- Dallas economist Jesus Cañas products—goods destined for workers, entrepreneurs and ists with 30 representatives from the Hanoi regime, at
ing the same period. provides a useful profile of assembly or other processing suppliers of business services which they discussed coordinated action to ensure an
President Trump, who was post-Nafta Texas in a 2016 re- after which they are imported who buy and sell across the American defeat and a communist takeover in Vietnam. Ac-
a Democrat for most of his port “Texas Border Cities Il- back into the U.S.” Mexico is border. Mr. Trump forgets cording to a then-left-wing activist present at the meeting,
life, uses the metaphor of the lustrate Benefits and Chal- Texas’ top export market, tak- these men and women at his Sol Stern, Hayden declared to his fellow activists: “We are
forgotten man in much the lenges of Trade.” The report ing 40% of what the state own political peril. all Viet Cong now.” In 1979, when pacifist Joan Baez orga-
same way President Franklin says 710,000 U.S. jobs were sends abroad. Write to O’[email protected]. nized a petition to protest Hanoi’s racist pogrom against
Vietnam’s ethnic-Chinese minority—a pogrom that resulted
in the deportation of hundreds of thousands of “boat peo-
Stock Options for the Little Guy ple”—Hayden and his wife, Jane Fonda, organized a coun-
terstatement defending Hanoi.
In his 1988 memoir “Reunion,” Hayden seemed to express
By William M. Isaac inequality, but it would help. share values for the com- success, increase the wealth a partial reconsideration of his past views of communism.
And Richard M. Stock options weren’t al- pany’s existing stockholders. and retirement benefits for He admitted: “Time has proved me overly romantic about
Kovacevich ways reserved for those at This double cost became so low- and middle-income the Vietnamese revolution.” He regretted having felt “mini-
O
the top of the corporate lad- expensive that nearly all cor- workers, and improve em- mal concern” about Viet Cong atrocities toward Vietnamese
ne message from last der. It used to be rather nor- porations eliminated stock ployee morale, all at no cost civilians and admitted being “blind to the core of authoritar-
year’s election is that mal for employees to have the options for employees making to the government. ianism” that drove the regime. He concluded: “I think many
American workers are option of purchasing shares in less than $100,000 a year. For these reasons, we be- of Vietnam’s postwar problems originated in the nature of
discouraged and angry that the company for which they Congress should override lieve legislation to override Marxism-Leninism itself.” No such criticism is to be found in
the “system” is not working were working. But in 2006 FAS 123 so that it isn’t so FAS 123 would receive strong “Hell No.” By 2016, Hayden had retreated to the radical left’s
for them. The standard of liv- the Financial Accounting expensive for companies to bipartisan support in Con- default position of justifying communist crimes perpetrated
ing for low- and middle-in- allow employees whose cash gress. The plan is also consis- in victory: “Many will resort to their own moral compass to
come Americans is not keep- compensation is less than tent with President Trump’s judge this outcome. My own view is that it was a predictable
ing pace with historical Helping companies $100,000 to have access to desire to “make America result of a war beyond any negotiating.”
growth. Worse, there seems stock options. Current ac- great again.” After all, there This statement points toward a fundamental problem for
to be a widening income gap give ownership to counting treatment for those is no other way to achieve Hayden. He worked hard for the victories of the communist
between average workers and average workers is as employees earning more economic growth than forces in Indochina but cannot come to terms with his moral
corporate executives whose than $100,000 would not through successful compa- responsibility for the disasters that followed at the hands of
income is increased by stock easy as repealing 123. change. nies. What better way is his favored regimes. He speaks in passing, for instance, of
options and other benefits Allowing all employees ac- there to motivate employees what he calls the “insanity” of the Khmer Rouge. But no-
available to them. cess to stock options would than to align their personal where in his book does he confess that he testified before
Many people see this as a Standards Board issued a rule inevitably dilute earnings per interests with the success of Congress in early 1975 against any further military or eco-
lack of respect for the contri- called FAS 123, which requires share, but this is a cost com- their companies? nomic aid to the Cambodian government—the only barrier
butions of the average companies to account for panies and executives should to the country’s takeover by the Khmer Rouge—and claimed
worker. An important first stock options as if they were be willing to pay in order for Mr. Isaac, a former chair- that a cutoff would diminish the possibility of a bloodbath.
step in turning around this a cash expense, therefore re- employees to have a stake in man of the Federal Deposit In other words, “truth teller” and “peace lover” Tom Hayden
perception would be to de- ducing the net income of the the company’s earnings. Insurance Corp., is senior himself peddled untruths in the service of military conquest
velop an affordable way for company. FAS 123 also re- Giving all workers access managing director of FTI by brutal totalitarian dictatorships.
corporations to provide stock quires stock options to be to stock options would recog- Consulting. Mr. Kovacevich is
options to all employees. recognized as more shares nize the contributions they retired chairman and CEO of Mr. Morris is the author of “Why Vietnam Invaded Cam-
That wouldn’t solve income outstanding, thus diluting make to their companies’ Wells Fargo & Co. bodia: Political Culture and the Causes of War.”
OPINION
REVIEW & OUTLOOK LETTERS TO THE EDITOR
Hank Greenberg’s Vindication Is Dr. Paul’s ObamaCare Treatment Optimal?
T
he taxpayers of New York State should berg notes that the two transactions “were The proposal in Sen. Rand Paul’s None of the proposed fixes face
be furious. After 12 years of chasing for- not material to AIG’s financial statements or Jan. 27 letter essentially turns the the reality that 70% of Americans
health-care reimbursement system have under $1,000 in savings (USA
mer AIG CEO Hank Greenberg by three its shareholders.” Mr. Schneiderman makes
back to pre-ACA times. It fosters indi- Today, Oct. 9, 2016). Pay in advance
state Attorneys General, cur- much of AIG’s 2005 earnings vidual insurance plans and erodes in- and get reimbursed with tax credits?
rent AG Eric Schneiderman New York’s AIG fraud restatement, after Mr. Green- dividual state insurance department Really? With what?
settled on Friday for $9 mil- case sputters to a berg had been forced out as requirements. For example, an insurer LARRY NEAL
lion and the legal equivalent CEO by Mr. Spitzer, but AIG with situs in Alabama could sell its Charlottesville, Va.
of a lousy T-shirt. pathetic settlement. said at the time that restat- policies in New York without meeting
Discredited former state ing the transactions had little New York requirements for policy If Medicare can pay a hospital-af-
AG Eliot Spitzer began the effect on AIG’s earnings or forms or capital surplus require- filiated cardiologist $453 for a car-
civil fraud case in 2005 as part of his revenge balance sheet. ments. This will result in consumers diac sonogram compared with the
campaign against Mr. Greenberg for daring to The real lessons of the Greenberg case start being subject to abuse in the pur- $189 that the same cardiologist made
criticize his prosecutions against business. The with the absurd lengths that progressive prose- chase of worthless insurance prod- when he was independent, no wonder
ucts and loss of coverage due to in- independent doctors face pressure to
initial charges sought restitution and punitive cutors will go to punish capitalists they don’t
surer insolvency. sell their practices to hospitals.
damages on multiple counts that Mr. Spitzer like. As a rich CEO who built AIG into the world’s Another part of this proposal pro- Sen. Paul’s plan addresses patients’
called criminal fraud on national TV. Mr. most successful insurance company, Mr. Green- tects consumers with individual in- choices but omits that independent
Greenberg was never charged with a crime, and berg was an easy target amid the anti-business surance from pre-existing illness ex- doctors are suffering, and the past
by the end Mr. Schneiderman had given up mood of the post-Enron 2000s. Mr. Spitzer clusions only if they sign up within patient-doctor relationship is rapidly
seeking monetary damages in court and was threatened to indict AIG—a financial death sen- two years of the implementation of disappearing. Independent doctors
left trying to bar Mr. Greenberg from the secu- tence—lest the board dump Mr. Greenberg, who Dr. Paul’s legislation. In addition, lim- are open late on weekdays and often
rities business and corporate boards. had little choice but to retire. ited-benefit policies will be available, see patients on Saturdays. That is not
The settlement didn’t deliver even that That was a tragedy for Mr. Greenberg, but meaning consumers who can least af- true with hospital-owned doctors.
much as the AG’s case unraveled once it went far worse for AIG shareholders and the U.S. fi- ford medical bills will again be re- They work 40 hours a week and if
to trial last year. The testimony of a key prose- nancial system. The managers who succeeded sponsible for more of them. That is a you call them on weekends or after 5
giant step backward. p.m., the answering service suggests
cution witness, Richard Napier, was shown to him ramped up AIG’s housing bets, and the U.S. We need to bring all of the play- you go to the ER.
have changed over time and an appellate court government eventually needed nearly $185 bil- ers—health-care providers, actuaries, SATINDER MULLICK, PH.D.
had judged that he may “well have testified lion to nationalize AIG during the 2008 finan- health insurers, employers as well as Johns Hopkins University
falsely.” In December Mr. Schneiderman ficial panic. Compare that $185 billion to Mr. Congress—to discuss what should be Baltimore
nally agreed to accept mediation in the case, Schneiderman’s $9 million settlement. eligible for reimbursement. Like it or
which Mr. Greenberg had long sought. Both Another lesson is the abusive nature of New not, the next step is to discuss and Sen. Paul’s ACA replacement plan
sides agreed to accept the findings of media- York’s Martin Act, which lets prosecutors prove come to a consensus on the limits of contains an entirely new government
tor Kenneth Feinberg. civil fraud without showing intent to deceive. care. entitlement. His $5,000 tax credit will
The $9 million fine amounts to pin money Prosecutors can portray mere inaccuracies as Why can’t our politicians realize go to millions who currently pay
for Mr. Greenberg, and we’re told is $7.5 mil- fraud, which typically forces businesses and in- that one of the reasons for the popu- nothing in federal income taxes. This
larity of VA health benefits and Medi- makes it an unfunded government en-
lion less than he offered to settle before the dividuals to settle or plead guilty. Mr. Green-
care is they work, at least most of titlement. By allowing deductions
trial started. It won’t come close to covering berg was a rare individual with the financial re- the time. Is it too hard to see that we against payroll taxes, it will defund
the state’s costs for pursuing the case over so sources and tenacity to fight back. The Martin need to have these kinds of plans for Social Security, essentially borrowing
many years. Mr. Schneiderman nonetheless is- Act is an affront to basic fairness and contra- everyone and to chip away at health from Dr. Peter to pay Dr. Paul. Is this
sued a press release—his favorite legal maneu- dicts federal securities law. The courts should expenditures to begin to solve our the senator’s version of entitlement
ver—late Friday claiming that “Greenberg Ad- strike it down if New York’s politicians are too health-care mess? reform?
mits To Initiating, Participating, and rapacious to repeal it. MICHAEL DRESSENDORFER STEVE WALDE
Approving Two Fraudulent Transactions Com- Mr. Greenberg says he will continue his defa- Antioch, Ill. Rancho Santa Fe, Calif.
mitted by AIG While CEO.” mation suit against Mr. Spitzer, who certainly
But Mr. Greenberg did not admit to fraud. He deserves the legal attention. The former AG
admitted to accounting errors. His settlement skirted justice when he wasn’t indicted for
statement admitted merely to approving two courting prostitutes as New York Governor, Chile’s Fires Have Nothing to Do With Politics
transactions in 2000 the result of which was though he showed no such leniency to his many Regarding Mary Anastasia puche territory to the fires, nor are
that “AIG’s publicly-filed consolidated financial business targets. O’Grady’s “Fire and Terrorism in there any linking South American
statements inaccurately portrayed the account- The entire sorry episode shows how easily Chile” (Americas, Feb. 6): Chile is guerrillas to Mapuche. Furthermore,
ing.” That’s all, folks. Captain Ahab pursued the the law can be abused when prosecutors pursue beginning to overcome the tragedy the fires occurred in regions where
great white whale for 12 years and came home cases for political fame rather than justice. Con- of a fire which covered an area of there are no Mapuche. There are in-
with Baby Nemo. gratulations to Mr. Greenberg and his legal hundreds of thousands of acres as a vestigations under way regarding ar-
In a separate statement Friday, Mr. Green- team for fighting for the truth. result of global warming that has sonist acts, but none of these are re-
led to an increase in temperature lated to Mapuche activism.
and a notorious decrease in rainfall Violence in the Mapuche territo-
Voter Fraud and Punishment in Chile.
The suffering of the affected popu-
ries is a matter too serious to be
transformed into conspiracies of the
V
lation, the loss of human life and the far left. It expresses a dilemma to-
oter fraud is a bigger problem than the all the evidence, but there is still the matter of destruction of forest, land, agricul- tally unrelated to this summer’s fires:
media claim, but even if you think the proportion. Ortega was indicted in November ture and animals have profoundly that of a country striving to build a
government should do more to stop it, 2015, but her trial and sentencing come amid the moved our country.The international beneficial coexistence with its indige-
does fraudulent voting deserve polarized national debate over community has provided generous nous peoples. The insult that Ms.
eight years in prison? That’s the Illegal voting should voter fraud since Donald aid, for which we express gratitude O’Grady directed to President Mi-
sentence that a permanent U.S. be sanctioned but not Trump’s election. Ortega’s law- and enthusiasm, and has permitted chelle Bachelet by saying that she
resident in Texas received last yer told the press that he had us to gradually control the fire. The puts her political interests above the
week for illegally voting. like a violent felony. worked out a deal with Texas aid provided by the United States, tragedy of the wildfires is gratuitous
A Tarrant County (Fort Attorney General Ken Paxton both public and private, must be and unworthy.
highlighted—including a supertanker AMBASSADOR JUAN GABRIEL VALDÉS
Worth) jury convicted 37- to drop the charges in return
plane, technical experts and financial Embassy of Chile
year-old Rosa Maria Ortega on two felony for Ortega testifying to the state legislature on aid reaching almost $1 million. Washington
counts, and the punishment is eight years in the voting procedures, but local district attorney Ms. O’Grady makes a flaming cari-
slammer and a $5,000 fine. Ortega was born in Sharen Wilson nixed it. cature of this tragic episode, encour-
Mexico and brought illegally to the U.S. as a Someone needs to revisit this harsh punish- aging a conspiratorial rumor that has Forget the Hospitals, What
baby before she became a green-card holder as ment. Whatever the deterrent effect on others circulated on Chilean social networks
an adult. Her lawyer says Ortega has a sixth- from such a severe sentence, an individual case during the last few weeks. It is a per-
About the Penalized Insured?
grade education and didn’t understand that le- of voter fraud is not a violent felony. Ortega fect example of post-truth politics: I get very frustrated when I read
gal residents don’t have the right to vote. “If I wasn’t running a voter-fraud ring. If a judge There is not a single police report that “more than 20 million Ameri-
knew, everything would have been done the can’t intervene, Governor Greg Abbott should that links acts of violence in the Ma- cans gained health insurance” under
correct way,” Ortega testified. “All my life I was commute Ortega’s sentence to time served after the Affordable Care Act (“Hospitals
Fear Changes to ACA,” Business & Fi-
taught I was a U.S. citizen.” a decent interval with a warning that Texas is
The jury clearly didn’t believe that, and it saw taking fraud seriously.
Obama Had Little to Do nance, Feb. 6). Twenty million Ameri-
cans may be insured through the law,
With the Great Bull Market but many lost the insurance they had
Trump’s Winning Asia Diplomacy James Mackintosh’s “Streetwise:

Obama’s Run Will Be Tough to Beat”
and therefore gained nothing. My
family falls into this category. In
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(Business & Finance, Jan. 20) proves 2014 my husband and I received a
resident Trump has had a busy few sensitive as Taiwan’s independence, Mr. Trump two points. Sluggish economies and letter from our insurer informing us
days of Asia diplomacy, including his will now be able to secure more support for a no-growth policies take a back seat it wouldn’t renew the plan we’d had
first post-inauguration phone call with cautious but still expanded Taiwan agenda from to the power of intelligent corporate for years because we were no longer
China’s Xi Jinping on Thurs- leaders in Taipei, Tokyo and governance. At day’s end investors eligible—with no further explanation.
day, a White House summit Promising signs from a other friendly capitals. buy companies they believe will re- After investigating for several days, I
ward them through rising share found out that under the ACA, hus-
with Japan’s Shinzo Abe on call with Xi Jinping and Which brings us to Mr. prices and escalating dividends—even band-and-wife businesses no longer
Friday and 27 holes of golf Trump’s strikingly friendly when the overall economy is in the qualified as groups and had to switch
with Mr. Abe on Saturday, golf with Shinzo Abe. summit with Mr. Abe, a display tank, as ours has been. When govern- to the individual market. Since then
followed by a joint press con- surely not lost on Chinese lead- ment policy, in this case the continu- we have been in and out of at least
ference on North Korea’s lat- ers who rightly identify the ance of artificially low interest rates, four plans, each more expensive than
est missile launch. Unlike some of his earlier Japanese Prime Minister as a devoted opponent makes bonds relatively unattractive, the one before, until finally there
encounters with foreign leaders, this round of their ambitions to dominate Asia. “We have investors will flock to equities with was no option left for us other than
demonstrated sobriety, careful planning and a very, very good bond—very, very good chemis- their disposable and investible in- ObamaCare. There may be millions of
respect for allies. try,” Mr. Trump gushed at a joint press confer- come. While his acolytes will praise Americans on the exchanges, but
The news out of the Xi call is that Mr. Trump ence. “When I greeted him at the car, I shook investor rewards and attribute the many of us would have preferred to
same to his tenure in office, the real- be among those who, to paraphrase
affirmed the longstanding U.S. “One China pol- hands, but I grabbed him and hugged him be-
ity is that former President Obama former President Obama, got to keep
icy” concerning Taiwan, which he previously cause that’s the way we feel.” This is a turn- played a very minor part in the stock our plan if we liked our plan.
said would be “under negotiation” with Beijing around from Mr. Trump’s campaign-trail criti- market’s performance. FRANCES ERLEBACHER
along with trade and other issues. Some of our cisms of Japan as a freeloading ally. RICHARD KLITZBERG Rye, N.H.
friends in the media have portrayed this as evi- “We’re committed to the security of Japan,” Princeton, N.J.
dence that the U.S. President is a “paper tiger,” Mr. Trump declared. He also echoed his de-
citing Chinese officials who say Mr. Xi refused fense secretary, Jim Mattis, in reaffirming that Pepper ...
to speak with Mr. Trump until he softened his the U.S.-Japan security treaty covers the It Should Be the Harry Reid And Salt
stance. But the substance of Mr. Trump’s shift Japan-administered Senkaku Islands that Rule, Not the Nuclear Option
isn’t surprising or dramatic. China has swarmed with civilian and paramili- THE WALL STREET JOURNAL
Rather than embrace Beijing’s “One China tary ships in recent years. On trade, a potential Regarding E. Donald Elliott’s “For
Moderate Democrats, Judge Gorsuch
principle,” which insists that Taiwan is part of sore point with Mr. Trump even in the best of
Is as Good as It Gets” (op-ed, Feb. 7):
China, Mr. Trump only endorsed the U.S. policy circumstances, the two leaders punted to a bi- The Senate should not call changing
of acknowledging a Beijing-Taipei disagreement lateral working group to be led by U.S. Vice the vote for the Supreme Court nomi-
over Taiwan’s status, reserving U.S. judgment President Mike Pence and Japanese Finance nee the “nuclear option.” It should be
on the issue and calling for the peaceful settle- Minister Taro Aso. called “Reid’s Rule.” After all, Harry
ment of disputes with the consent of Taiwan’s North Korea helped underscore the stakes of Reid created it and was the first to
people. As has been true for decades, this U.S.-Japan cooperation Saturday by shooting use it.
amounts to little more than agreeing to dis- a Musudan intermediate-range ballistic missile ELLIOT FEIT
agree. It certainly doesn’t stop the U.S. from sup- into the Sea of Japan, its first test on Mr. Deerfield Beach, Fla.
porting Taiwan with means other than official Trump’s watch. Though not the intercontinental
recognition as an independent state. missile launch Pyongyang has promised, this Letters intended for publication should
Nor does it stop Mr. Trump from building on was a reminder that its nuclear program is ad- be addressed to: The Editor, 1211 Avenue
of the Americas, New York, NY 10036,
his December phone call with Taiwanese Presi- vancing on many fronts. Mr. Trump, fresh off or emailed to [email protected]. Please
dent Tsai Ing-wen by boosting economic, diplo- the golf course and a candlelight dinner with include your city and state. All letters
matic and military ties with the island. On the Mr. Abe and their wives, offered a brief state- are subject to editing, and unpublished
contrary, by signaling that he won’t risk a de- ment: “The United States of America stands be- letters can be neither acknowledged nor “Real news is so depressing – can’t
returned.
stabilizing clash with Beijing over a matter as hind Japan, its great ally, 100%.” Hear, hear. they make fake news happy?”
OPINION
Yale’s Inconsistent Name-Dropping

By Roger Kimball You might, like me, think that Cal- strong association with our campus.”
Y
houn was wrong about that. But if What can that mean? Calhoun gradu-
ale University announced you are Peter Salovey, you have to ated valedictorian from Yale College
Saturday that it would disparage Calhoun as a “white su- in 1804. Is that not a “strong associ-
change the name of Cal- premacist” whose legacy—“racism ation”? (Grace Hopper held two ad-
houn College, one of its and bigotry,” according to a univer- vanced degrees from the university
original 12 residential col- sity statement—was fundamentally but had no association with the un-
leges that opened in the early 1930s. “at odds” with the noble aspirations dergraduate Yale College.)
Henceforth, the college will be of Yale University (“improving the As far as I have been able to de-
named in honor of Grace Hopper, an world today and for future genera- termine, Elihu Yale never set foot in
early computer scientist and naval tions . . . through the free exchange New Haven. His benefaction of some
officer. of ideas in an ethical, interdepen- books and goods worth £800 helped
No sentient observer of the Amer- dent, and diverse community”). found Yale College, not Yale Univer-
ican academic scene could have been During a conference-call press sity. And whereas the 11th edition of
surprised by the move to ditch John briefing Saturday, and throughout the Encyclopaedia Britannica praises
C. Calhoun, the 19th-century South the documents related to the Cal- Calhoun for his “just and kind” treat-
Carolina statesman after whom the houn decision, officials have been ment of slaves and the “stainless in-
careful to stress that the university tegrity” of his character, Elihu Yale
operates with a “strong presumption had slaves flogged, hanged a stable
Several campus names against” renaming things. Because boy for stealing a horse, and was
they do not seek to “erase history,” eventually removed from his post in
are more objectionable the officials insist, renaming things India for corruption. Is all that not
than John C. Calhoun— for ideological reasons would be “ex- “fundamentally at odds” with the
ceptionally rare.” mission of Peter Salovey’s Yale?
including Elihu Yale. When you study the four principles Mr. Salovey stepped out of a
Mr. Salovey’s committee came up with board meeting briefly to join the
to justify a renaming, you can see why conference call on Saturday. More in
college was originally named. On the it took so long. The task, it seems sadness than in anger he disparaged
contrary, the unspoken response was clear, was to find a way to wipe away John Calhoun, praised Grace Hopper,
“What took them so long?” Calhoun College while simultaneously and affirmed his commitment to di-
ALAMY
Since last August, when Yale’s immunizing other institutions at Yale versity, free inquiry, etc. Then one of
president, Peter Salovey, announced from politicized rebaptism. the reporters asked why he was re-
that he was convening a Committee Did the principal legacy of the John C. Calhoun served as U.S. vice president, 1825-32. naming Calhoun College for a white
to Establish Principles for Renam- honored person “fundamentally con- woman, especially since February
ing—yes, really—the handwriting flict” with the university’s mission? the historical picture a bit. Nearly have colleges named in their honor was Black History Month. Oh dear.
had been on the wall for Calhoun, a Was that legacy “contested” within every Yale official who spoke at Sat- at Yale. Thanks so much, must get back to
distinguished Yale alumnus who the person’s lifetime? Were the rea- urday’s press briefing had to de- Writing in these pages last sum- that board meeting now.
served as a congressman, senator, sons that the university honored him scribe John Calhoun (1782-1850) as a mer, I suggested that Yale table the In “The Crack-Up,” F. Scott
secretary of war, secretary of state at odds with Yale’s mission? Does the “white supremacist.” Question: Who question of John Calhoun and tackle Fitzgerald comments that “the test
and vice president. named building or program play a among whites at the time was not? some figures even more obnoxious to of a first-rate intelligence is the abil-
Like Belshazzar before him, Cal- substantial role in “forming commu- Take your time. contemporary sensitivities. One ex- ity to hold two opposed ideas in the
houn had been weighed and found nity at Yale”? Calhoun owned slaves. But so did ample was Elihu Yale, the American- mind at the same time, and still re-
wanting. He may have been a brilliant Readers who savor tortuous ver- Timothy Dwight, Calhoun’s mentor born British merchant who, as an ad- tain the ability to function.” First-
orator and a fierce opponent of en- bal legerdemain will want to ac- at Yale, who has a college named in ministrator in India, was an active rate or not, the evolving politically
croaching federal power, but he was quaint themselves with the “Letter his honor. So did Benjamin Silliman, participant in the slave trade. correct circus at Yale does not offer
also a slave holder. And unlike many of the Advisory Group on the Renam- who also gives his name to a resi- President Salovey’s letter an- a lot of support for that proposition.
of his peers, Calhoun argued that slav- ing of Calhoun College,” which is dential college, and whose mother nouncing that Calhoun College would
ery was not merely a necessary evil available online. It is a masterpiece was the largest slave owner in Fair- be renamed argues that “unlike . . . Mr. Kimball is editor and pub-
but a “positive good,” because it proof the genre. field County, Conn. So did Ezra Elihu Yale, who made a gift that sup- lisher of the New Criterion and presi-
vided for slaves better than they could Is it also convincing? I think the Stiles, John Davenport and even ported the founding of our univer- dent and publisher of Encounter
provide for themselves. best way to answer that is to fill out Jonathan Edwards, all of whom sity . . . Calhoun has no similarly Books.
Washington Protects Wall Street at Ordinary Citizens’ Expense

By Alan S. Blinder That rule, which was six years in At 2,319 pages, it’s an imperfect it’s true that banks must comply doesn’t.) It is pretty clear, however,
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the making, was to go into effect in piece of legislation, to be sure. But it with more rules now. They must also that the U.S. banking industry is not
resident Trump seems to be April. It requires brokers and advis- achieved many important goals. hold more capital. Those require- being choked by regulation.
looking for places to direct his ers who manage retirement accounts Since space is limited, I’ll mention ments are indeed burdensome to Dodd-Frank also established the
ire. Among his recent targets like 401(k)s to adhere to what is just three. banks. To the rest of us, they are in- Consumer Financial Protection Bu-
were consumers of financial ser- called the fiduciary standard—which Title II of the act provides a surance against a runaway financial reau to make it harder for financial
vices. That includes anyone with an means acting in their clients’ best in- sorely needed mechanism for put- system tearing down the economy institutions like Goldman to cheat
individual retirement account, a terests instead of their own. If you ting a dying financial giant out of its again. their customers. If you don’t think
bank account or a credit card. haven’t followed this issue, you may misery peacefully—in contrast to the As for Mr. Cohn’s specific claims, consumers need such protection,
His point man was Gary Cohn, be amazed that this is not already they are absurd on their face. Here read this newspaper daily. Yet Re-
director of the National Economic the law of the land. It isn’t. They can are some real facts. publicans have been looking to evis-
Council and former president and (and do) fleece you legally. From the fiduciary First, banks do not pay anything cerate the CFPB since before it
chief operating officer at Goldman What do Mr. Cohn and his boss close to “hundreds of billions of dol- opened its doors in July 2011.
Sachs. A fact-based outfit, many of think about the fiduciary standard? standard to Dodd-Frank, lars” per year to comply with regu- As Mr. Cohn correctly observed,
us thought. So maybe Mr. Cohn “We think it is a bad rule,” he told Trump belies his lations. The Federal Deposit Insur- the administration doesn’t need
would be the grown-up in the the Journal. “This is like putting ance Corp. reports that total legislation to neuter the bureau. It
room. No such luck. It looked like only healthy food on the menu, be- populist campaign. noninterest costs of all banks over needs only to replace its deter-
Kellyanne Conway sent him out to cause unhealthy food tastes good the first three quarters of 2016 were mined director, Richard Cordray,
face the press with “alternative but you still shouldn’t eat it because $315 billion. Well under 10% of that with a fox who won’t guard the
facts.” you might die younger.” Read those violent way Lehman Brothers died, cost goes for compliance, according proverbial chicken coop. “Personnel
Mr. Cohn’s interviews previewing words again, and be glad Mr. Cohn leaving so much collateral damage to a survey by the Conference of is policy,” Mr. Cohn warned. Hens
and lauding Mr. Trump’s expansive doesn’t run the school lunch pro- behind. Yet Mr. Cohn insists that the State Bank Supervisors. beware.
Feb. 3 executive order on financial de- gram. Trumpian deregulation of financial Second, bank lending is not shriv- Congress passed Dodd-Frank to
regulation were the first steps toward The new executive order on fi- markets “has nothing to do with eling up. Those same FDIC data protect ordinary citizens from rapa-
undermining Congress’s 2010 finan- nancial deregulation, he said, is “a Goldman Sachs” or other giants. Re- show that total bank lending grew cious Wall Streeters. Turns out that
cial reform law, the Dodd-Frank Act. table setter for a bunch of stuff that ally? He even claimed that Dodd- 7% over the past four quarters, more in Trumpworld, Wall Street needs
An accompanying presidential memo- is coming.” His boss was blunter. Frank fails to provide “a solid pro- than twice as fast as nominal gross protection from ordinary citizens.
randum directed the secretary of la- During a meeting with business ex- cess” for winding down a faltering domestic product. Among commu- Who knew?
bor (a post still vacant because the ecutives this month, Mr. Trump said financial giant. Sorry, it does. nity banks, growth was even faster:
nominee only recently submitted his he expects “to be cutting a lot out of According to Mr. Cohn, lending by 9.4%. The lending was profitable, Mr. Blinder, a former Federal Re-
paperwork) to revise or rescind Presi- Dodd-Frank.” Watch out America. American banks is inhibited because too; net income rose 12%. serve vice chairman, is a professor
dent Obama’s rule establishing a fidu- Congress enacted Dodd-Frank to en- they are hamstrung “with literally None of this is to argue against of economics and public affairs at
ciary standard for retirement ac- sure that we never suffer through a hundreds of billions of dollars of regulatory relief for smaller banks. Princeton University and a visiting
counts. financial crisis like 2008-09 again. regulatory costs every year.” Well, They need some. (Goldman Sachs fellow at the Brookings Institution.
Trump’s New Start With Russia May Prove Better Than Obama’s
By John Bolton product of Cold War nostrums about didn’t vote), as did 2012 presidential its Ukraine aggression were brushed Middle East by using the Syria con-
M
reducing nuclear tensions. Arms-con- nominee Mitt Romney. Mr. Trump’s aside and sanctions lifted. flict as a wedge. While Ukraine may
edia tittle-tattle about Presi- trol treaties, properly conceived and remarks are therefore squarely in the Yet amid the breathless press ac- seem an unrelated issue, it is not.
dent Trump’s telephone calls drafted, should look like George W. party’s mainstream. counts about Mr. Trump’s purported Moscow’s diplomatic efforts to
with foreign counterparts Bush’s 2002 Treaty of Moscow: short Not so, however, are some of Mr. fancy for Mr. Putin, one thing is “solve” the Syrian conflict are in sub-
received new fuel last week after de- (three pages), with broad exit ramps Trump’s comments—or at least the clear: The Trump administration’s stantial part an effort to “help” Eu-
tails leaked of a conversation with and sunset provisions. inferences drawn from them—on Mr. rope with the Syrian refugee prob-
Russia’s Vladimir Putin. The usual Although President Obama had Putin’s political and military adven- lem, providing yet another
anonymous sources alleged that considerable help from then-Secretary turism in Europe. Many Republicans The new president’s inducement to wobbly Europeans to
when Mr. Putin raised the 2010 New of State Hillary Clinton in this diplo- worry that, rather than strengthen- roll back sanctions. Any perceived
Start arms-control treaty, Mr. Trump matic failure, Russia was hardly ing the international economic sanc- reported disdain for his American weakness on the sanctions
asked his aides what it covered—and blameless. Moscow subsequently ex- tions imposed on Russia for its bel- predecessor’s arms deal would embolden Russian efforts to
then, once briefed, declared it to be ploited the treaty’s weaknesses to re- ligerent incursions into eastern further penetrate the Middle East,
one of those bad Obama deals he build and modernize its arsenal of nu- Ukraine and its 2014 annexation of is an encouraging sign. increasing the dangerous, destabiliz-
planned to renegotiate. clear warheads and ballistic missiles, Crimea, Mr. Trump may reduce or re- ing effects of Moscow’s tacit alliance
If so, Mr. Trump got the treaty while Mr. Obama stood idly by. Repub- scind sanctions entirely. with Iran.
right. From America’s perspective, lican senators opposed New Start’s This apparent difference is no policy toward, and even its strategic Significantly, Mr. Trump has said
New Start is an execrable deal, a ratification, 26-13 (three of them small matter. Legislation to codify assessment of, Russia is still under he doesn’t know what his relation-
the existing sanctions is pending in construction. Most important, if the ship with Mr. Putin will ultimately
Congress. It has overwhelming— substance of Mr. Trump’s comments be, and he must surely recognize that
most analysts think veto-proof—bi- on New Start was accurately re- national interests, not personal
PUBLISHED SINCE 1889 BY DOW JONES & COMPANY partisan support. Commentators ported, it shows him resisting items chemistry, underlie great-power for-
wonder whether the remarkable Re- on Mr. Putin’s wish list, and not for eign policies. America doesn’t sacri-
Rupert Murdoch Robert Thomson
Executive Chairman, News Corp Chief Executive Officer, News Corp publican solidarity on Mr. Trump’s the first time. fice its national-security bottom line
Gerard Baker William Lewis cabinet nominations might be shat- Mr. Trump has, for example, un- just because a foreign leader “may
Editor in Chief Chief Executive Officer and Publisher tered if Russia policy is the first area equivocally opposed Mr. Obama’s smile, and smile.”
Matthew J. Murray DOW JONES MANAGEMENT:
in which the new administration Iran nuclear deal. On Feb. 1, National So let’s raise our glasses to Mr.
Deputy Editor in Chief Mark Musgrave, Chief People Officer; faces off with the Republican con- Security Adviser Mike Flynn put Iran Trump’s disdain for New Start, not to
DEPUTY MANAGING EDITORS:
Edward Roussel, Innovation & Communications; gressional majorities. “on notice” that the deal was on life mention the Iran nuclear deal, and
Anna Sedgley, Chief Operating Officer & CFO;
Michael W. Miller, Senior Deputy; Katie Vanneck-Smith, President
The sanctions on Russia for its in- support. New U.S. sanctions against hope for more of the same. The new
Thorold Barker, Europe; Paul Beckett, terference in Ukraine are already un- Iran underlined the point. The White president ought to strengthen the
Washington; Andrew Dowell, Asia; OPERATING EXECUTIVES:
Christine Glancey, Operations; Ramin Beheshti, Product & Technology;
der assault in Europe: Germany, House is reportedly considering list- sanctions, reassure NATO allies
Jennifer J. Hicks, Digital; Neal Lipschutz, Jason P. Conti, General Counsel; France and others appear close to ing Iran’s Revolutionary Guard Corps (while juicing them to meet their
Standards; Alex Martin, News; Ann Podd, Steve Grycuk, Customer Service; succumbing to their apparently hard- as a foreign terrorist organization, commitments on military spending),
Initiatives; Andrew Regal, Video; Matthew Rose, Kristin Heitmann, Transformation;
Enterprise; Stephen Wisnefski, Professional News Nancy McNeill, Advertising & Corporate Sales;
wired inclination to sacrifice geostra- which should have been done de- and then have coffee with Vlad. Ne-
Paul A. Gigot, Editor of the Editorial Page; Jonathan Wright, International tegic imperatives for economic ones. cades ago. Such a move would have a gotiate only from positions of
Daniel Henninger, Deputy Editor, Editorial Page DJ Media Group: Elections across the Continent this significant political and economic ef- strength.
Almar Latour, Publisher; Kenneth Breen,
WALL STREET JOURNAL MANAGEMENT: Commercial; Edwin A. Finn, Jr., Barron’s;
year may produce results even more fect on Moscow’s military-industrial
Suzi Watford, Marketing and Circulation; Professional Information Business: favorable to Moscow (possibly, in complex, particularly Rosoboronex- Mr. Bolton is a senior fellow at the
Joseph B. Vincent, Operations; Christopher Lloyd, Head; part, because of Russian meddling). port, its international arms-sales American Enterprise Institute and
Larry L. Hoffman, Production Ingrid Verschuren, Deputy Head
By contrast, the Baltic republics and agency. author of “Surrender Is Not an Op-
EDITORIAL AND CORPORATE HEADQUARTERS: other NATO members in Eastern and Washington should be also push tion: Defending America at the United
1211 Avenue of the Americas, New York, N.Y., 10036 Central Europe are alarmed that Rus- back against Russia’s inserting itself Nations and Abroad” (Simon &
Telephone 1-800-DOWJONES
sia’s adventurism would increase if militarily and politically into the Schuster, 2007).
Created in 1968 and inspired by the four-leaf clover,

the Alhambra collection is a precious symbol of luck.
Haute Joaillerie, place Vendôme since 1906
vancleefarpels.com - 877-VAN-CLEEF
TECHNOLOGY: TRUMP TAKES ON SILICON VALLEY B4
BUSINESS & FINANCE

© 2017 Dow Jones & Company. All Rights Reserved. THE WALL STREET JOURNAL. Monday, February 13, 2017 | B1
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Verizon Returns to Unlimited Plans

BY RYAN KNUTSON which has spent years trying more than 22 gigabytes of
to get customers to pay for Comparing Unlimited Data Plans data in a single month. Veri-
ANDREW HARRER/POOL/GETTY IMAGES

Verizon Communications data based on usage and re- In a reversal, Verizon said it will join rivals in selling unlimited data plans. zon says two-thirds of custom-
Inc. will start selling unlimited cently raised prices on certain ers don’t use more than 5 gi-
data plans on Monday, the fees. Last month, Verizon’s fi- Price of unlimited plans With one With four gabytes of data a month.
first time it has offered such a nance chief, Matthew Ellis, smartphone smartphones Verizon spokesman Jeffrey
service since 2011 and a sign said on a conference call with Nelson said the new plan wasn’t
that intense competition is analysts that unlimited data $80 $180 a response to competition,
forcing the nation’s largest plans were “not something we rather it was a sign of network
carrier to respond. feel the need to do.” $100* $180* quality.
Sprint Corp. and T-Mobile At $80 a month for a single Verizon’s pricing change will
US Inc. have been chipping smartphone, Verizon’s new unlikely be seen by many public-
away at Verizon’s customer limited plan is only $10 more $70 $160 interest groups as evidence Director of the National
growth, thanks in part to those than a current Verizon plan against further consolidation in Economic Council Gary Cohn
carriers’ aggressive pricing for that includes just 4 gigabytes the wireless industry.
$60 $160
unlimited data. Last year, AT&T
Inc. started offering unlimited
data plans to customers who
of monthly data. By compari-
son, T-Mobile is selling unlim-
ited data for $70 for one line, *AT&T requires customers to sign up for DirecTV to get unlimited data.
Since regulators blocked
AT&T’s planned acquisition of
T-Mobile in 2011, prices have
Goldman
also sign up for its DirecTV sat-
ellite service.
Verizon added 2.3 million
including taxes and fees.
Four Verizon devices with
unlimited data will cost $180 a
Notes: Only T-Mobile's pricing includes taxes and fees; Excludes promotions;
All four carriers may temporarily slow speeds for heaviest data users.
Source: the companies THE WALL STREET JOURNAL.
come down while carriers
have spent billions of dollars
investing in their networks.
Veteran
of the most lucrative type of
monthly customers in 2016—
only about half the 4.5 million
month. Under its previous pric-
ing, plans in that price range
typically required families to
recent Super Bowl commer-
cials, both carriers slammed
its unlimited plan allows users
to stream high-definition
Regulator opposition also
quashed a potential merger
between Sprint and T-Mobile
Takes Lead
it added in 2015. The company
recently cautioned that profit
and sales growth this year will
share around 20 gigabytes.
Sprint and T-Mobile have
been targeting Verizon’s cus-
Verizon for its expensive bills.
But Sprint and T-Mobile’s
unlimited plans typically come
video.
Like other unlimited plans
in the industry, Verizon says it
in 2014.
That competition has
pushed carriers to offer larger
For Trump
be flat from 2016. tomer base with unlimited of- with some caveats—such as might slow data speeds for and larger data allowances to WASHINGTON—At Donald
The new plan is a stark ferings, which they began ad- only allowing for lower quality some users on congested cell compete—culminating with Trump’s first meeting with
change in strategy for Verizon, vertising heavily last fall. In video streaming. Verizon says towers if they have consumed the return of unlimited plans. Gary Cohn in late November,
he appeared so impressed with
the then-president of Goldman
It’s (Not) Electric By Nick Timiraos,

With low gas prices spurring Michael C. Bender
demand for trucks and SUVs, and Damian Paletta
electric and plug-in hybrid vehicles
garnered a sliver of U.S. sales Sachs Group Inc. that he joked
about offering him the post of
Treasury secretary, said a per-
son who recalled the moment.
Light Sitting nearby was the odds-on
trucks Cars favorite for the job, Steven
17.5M Mnuchin, who got the nod.
light vehicles Mr. Mnuchin’s confirmation
sold in 2016 has since been delayed. In the
meantime, Mr. Cohn, in office
as director of the National
Economic Council since the
start of the Trump administra-
Electric/ tion, has emerged as the most
plug-in hybrid powerful economic policy
maker in its early days.
The White House has desig-
Cars 124,820 nated Mr. Cohn to play a cen-
tral role on taxes, infrastruc-
Light trucks 26,424 ture, financial regulation and
Source: WardsAuto.com replacing the Affordable Care
THE WALL STREET JOURNAL. Volkswagen executives presented an electric prototype resembling its classic microbus at Detroit’s auto show last month. Act. He stood over the presi-
dent’s shoulder as Mr. Trump
California Steers Agenda on Cleaner Cars

signed executive orders on fi-
nancial regulation. The White
House says it is preparing a
tax-overhaul plan for release
State has power to set its own mandate for zero-emission vehicles, separate from Washington’s rules within weeks, giving Mr. Cohn
a prime role when several top
economic posts remain vacant.
BY MIKE SPECTOR relief from national fuel- follow its standards. Califor- a million electric cars by CARB report suggested com- Though these will eventually
economy and emissions reg- nia’s influence is a main rea- 2025. panies could comply with a be filled, Mr. Cohn is rapidly
Ford Motor Co. Chief Ex- ulations. But California, the son auto makers are devel- General Motors Co. in De- roughly 8% share. assembling a growing portfolio
ecutive Mark Fields used a largest car market in the oping electric cars and plug- cember started selling its That’s a steep order given that could solidify his influence
recent White House break- U.S., has its own rules that in hybrids even though such Bolt electric car in Califor- zero-emission vehicles were in the administration for the
fast with President Donald mandate auto makers sell vehicles are unpopular less than 1% of the record long term.
Trump to argue for relaxing more zero-emission vehicles among buyers responding to 17.5 million-plus light vehi- He met with senators who
U.S. car-emissions standards. powered with batteries, re- low gas prices. cles sold in 2016, according would shape tax policy two
But Mr. Fields and other
auto executives need to
travel 2,700 miles west of
Washington to find the gov-
quirements that will endure
even if federal rule makers
relax other national environ-
mental regulations.
Ford is spending $4.5 bil-
lion on new vehicles that in-
clude a hybrid sports car and
an electric SUV, despite
250,000
Rough number of zero-emission
to data provider Ward-
sAuto.com. Most sales of
zero-emission vehicles were
in California. Nearly twice as
days before Mr. Mnuchin, his
fellow Goldman alumnus, faced
the same lawmakers for his
confirmation hearing. Typi-
ernment officials who are “The conclusion is ines- banking most of its profits vehicles on the road in California. many were sold there as in cally, the Treasury secretary
pushing them the most on capable: California’s vehicle on meaty pickup trucks and all the other states combined and his senior staff spearhead
environmental regulations. future is electric,” said Mary sport utilities. over the past several years. those discussions. Mr. Trump
When it comes to forcing Nichols, head of California’s At Detroit’s annual auto Auto makers are seeking began a recent meeting by re-
auto makers to build cleaner Air Resources Board, or show in January, German nia, and sold more than relief from Environmental ferring to Mr. Cohn as one of
cars, California is in the CARB, upon the release of a auto giant Volkswagen AG, 1,000 in the first two months Protection Agency rules “my geniuses.”
driver’s seat. state report supporting the rehabbing its image after a on the market. mandating automobiles sold Mr. Trump rode to office
Car executives, under mandate in January. costly emissions scandal, California rules dictate in the U.S. average 54.5 Please see COHN page B8
pressure from Mr. Trump to CARB is the state agency showed off an electric proto- that zero-emission cars rep- miles a gallon, or 40 mpg in
relocate manufacturing to that polices tailpipe emis- type resembling its classic resent roughly 15% of sales real-world driving, by 2025. Goldman’s Abby Joseph
the U.S., have often sought sions, and nine other states microbus and pledged to sell by 2025, though the recent Please see CAR page B2 Cohen to retire.......................... B7
The Real Risks of Ending Net-Neutrality Rules INSIDE Dow ETF

Attracts
O
ne of the most basic This debate is likely to per-
principles of the inter- sist, but in the near term it
net is, depending on
whom you ask, either in
mortal peril or undergoing a
looks like advocates of net
neutrality will be dealt a ma-
jor blow. That’s because con-
Crowd of
rapid evolution.
Advocates for “net neu-
trality”—
sumers are going to love the
Trump administration’s poten-
tial first steps at dismantling
Investors
the princi-
ple that all
net neutrality. It starts with
an ever-widening array of ser-
BATTLE ROYALE BY CHRIS DIETERICH
data trans- vices that are “zero-rated.” RAGES OVER One of the oldest brands in
mitted Zero-rating involves inter-
PRINCE ESTATE the U.S. stock market is sud-
DANIEL ACKER/BLOOMBERG
through net service providers giving denly a hot trend.

the inter- customers free data services, No U.S. stock exchange-
KEYWORDS net should such as unlimited video MUSIC, B3 traded fund has pulled in more
CHRISTOPHER be treated streaming. money in 2017 than the
MIMS equally— Big carriers including SPDR Dow Jones Industrial
argue it is AT&T, Verizon, T-Mobile, Average ETF, a relatively small
needed for Comcast and Sprint already fund that is nonetheless the
America to cultivate innova- Ajit Pai, the Trump-appointed FCC chairman, recently closed an offer some forms of zero- most popular means of wagering
tive web-focused startups. investigation into ‘zero-rating’ practices by internet service providers. rated services. T-Mobile’s on the 120-year-old Dow Jones
Critics say that alternatives Binge On program allows Industrial Average.
to net neutrality could lead have vocally supported the rent net-neutrality rules, customers to stream Netflix, That ETF grabbed $2.6 billion
to innovation and competi- prerogative of the Federal companies on both sides for instance, and AT&T lets in new assets this year
tion in the country’s commu- Communications Commis- may be taking a wait-and-see subscribers stream its own through Thursday, more than
nications infrastructure,
where they are badly
sion to enforce strict net
neutrality, while most tele-
approach.
Microsoft Corp., Alphabet
DirecTV Now service, each
without eating into their
FERTILIZER the $2.4 billion that has gone
into the Vanguard S&P 500 ETF,
needed. communications companies Inc.’s Google, Netflix Inc., Ve- monthly data allowances. INDUSTRY according to data firm XTF.
This is a battle of titans.
Major internet companies—if
have opposed regulation that
preserves it. As President
rizon Communications Inc.
and Amazon.com Inc. de-
The FCC appeared to be in
the process of banning the
IS BOOMING Recent popularity
the Dow-tracking ETF began
of
not the hardware manufac- Donald Trump’s FCC appoin- clined to comment. AT&T practice in some instances, after Election Day and per-
turers that enable them— tees appear set to target cur- Inc. didn’t respond. Please see MIMS page B4 COMMODITIES, B8 Please see DOW page B2
B2 | Monday, February 13, 2017 * **** THE WALL STREET JOURNAL.
INDEX TO BUSINESSES BUSINESS & FINANCE

These indexes cite notable references to most parent companies and businesspeople
in today’s edition. Articles on regional page inserts aren’t cited in these indexes.
A G Entertainment..........B4
Activision Blizzard....B10 Goldman Sachs Group SPDR Dow Jones
Airbnb..........................A2 Industrial Average ETF
............................... B1,B7
Alibaba Group Holding .....................................B1
J Spiegel ........................ A2
.....................................A2
JPMorgan Chase.........B9 Sprint .......................... B1
Alphabet......................B4
Amazon.com ............... B4 L Symantec .................... B4
Apple......................B3,B9 Lego.............................B2 T
AT&T............................B4 Lions Gate Thrivent Financial ...... A2
B Entertainment..........B2 Time Warner...............B2
BAE..............................B4 M T-Mobile US................B1
Moonlighting Toyota Motor..............B3
Berkshire Hathaway...B9
Marketplace..............R5 Twitter.................A2,B10
Bharat Petroleum.......B8
C N U
Nestle..........................B3 Uber Technologies......A2
Cappex.com.................R9
Netflix.........................B4 UBS Group...................B3
Charter Communications
.....................................B4 S V
Comcast.......................B2 Samsung Electronics..B2 Verizon Communications
F Saudi Aramco..............B8 .....................................B1
Snap ............................A1 Vivendi ........................ B3
Facebook................A1,B4
FirstBank.....................R5 Sony.............................B4 W
Ford Motor..................B1 Sony Pictures Warner Music Group..B3
INDEX TO PEOPLE
B H
WARNER BROS.
Nelson, Sharon ........... B3
Baker, Omarr...............B3 Harris, Christopher.....R2 O
Bartolini, Matt............B2 Hersch, Joni................R4 Obrador, Andrés Manuel
Beck, Ted.....................R6 Hopkins, Jamie...........R5 López.........................A6
Bermingham, Nessan Batman’s popularity in ‘The Lego Movie’ led to a spinoff movie. ‘Lego Batman’ made a $55.6 million debut in the U.S. and Canada.
J P
‘Lego Batman’ Film Opens on Top

...................................A13
Jackson, Alfred...........B3 Pachter, Michael.......B10
Beshears, John...........R2
Jones, Van...................B3 Pai, Ajit.......................B4
Biswas, Rajiv .............. B8
K Patrick Harker.............B9
C Puzder, Andy...............R4
Kantrowitz, Mark ....... R9
Castaneda, Jorge........A6
Klein, Steven .............. R5 R ‘Fifty Shades Darker,’ try for kids to properties that
are normally PG-13,” said Mr.
Chien, Eric...................B4
Kostin, David .............. B7 Rubin, Robert..............B8 ‘John Wick: Chapter 2’ Estimated Box-Office Figures, Through Sunday Lin. “It’s not meant to com-
Choi, James.................R2
Kroll, Sue .................... B2 SALES, IN MILLIONS
Cohen, Abby Joseph...B7
L
S also begin strongly; pete with other versions.”
FILM DISTRIBUTOR WEEKEND* CUMULATIVE % CHANGE “Lego Batman,” rated PG,
Cohn, Gary.............B1,B7
Cordish, Reed..............B4 Laibson, David ............ R2
Sacks, Barry H............R5
Warner taps synergies cost $80 million to make.
Sacks, Stephen R ....... R5 1. Lego Batman Warner Bros. $55.6 $55.6 —
Lee Jae-yong...............B2 Another spinoff, “Ninjago,”
Cormier, Warren.........R2 Sakong, Jung .............. R2 Movie
Lin, Dan.......................B2 BY BEN FRITZ is scheduled for September,
D Sessions, Jeff.............B4 2. Fifty Shades Universal $46.8 $46.8 — and a sequel, “The Lego
Lusardi, Annamaria....R6 Sherwood, Michael.....B7
Del Rossi, Alison........R4 Time Warner Inc.’s War- Darker Movie 2,” is expected to come
M Singla, Rajesh.............B8 ner Bros. won a crowded and out in two years. Other mov-
E 3. John Wick: Lions Gate $30 $30 —
Maddalone, Guy..........R4 Slok, Torsten...............B9 broadly successful weekend Chapter 2 ies are in development under
Elsheshai, Nabil..........A2
Madrian, Brigitte........R2 Summers, Lawrence...B8 at the box office with a new a partnership between War-
Errejón, Íñigo .............A9 4. Split Universal $9.3 $112.3 -35
McMillan, L. Londell...B3 T movie featuring Legos, Bat- ner and Lego A/S that allows
F Meeks, Paul................A2 man, Robin, Superman, King 5. Hidden Figures Twentieth $8 $131.5 -21 for at least three more films.
Tillerson, Rex..............A6 Century Fox
Farrell, Peter...............R9 Mehra, Sanjeev...........B7 Kong, villains from “Harry “Lego” has given Warner a
Fazzino, James ........... B8 Mnuchin, Steve...........B1 W Potter” and “Lord of the *Friday, Saturday and Sunday Source: comScore foothold in the lucrative ani-
Moeller, Philip...........R10 Wallace, Rett..............A2 Rings,” and more. mation genre. The studio had
G
Mulvaney, Mick...........R4 Wang, Nelson ............. B8 “The Lego Batman Movie,” distinct advertising cam-
Giordano, Shelley ....... R5 which made its debut to a $469 million world-wide. Its books, but other DC Comics paigns aimed at children and
Mulyani Sri Indrawati B9 Will, Tony....................B8
Golub, Jonathan..........B2 healthy $55.6 million in the transformation into one of superheroes and villains from young adults, besides one for
Murphy, Bobby ........... A2 Wren, Scott...............B10
Gorsuch, Neil..............A4 U.S. and Canada, according to Warner Bros.’ key franchises is the Warner-controlled “Harry general audiences.
Gupta, Sushant...........B8 N Z studio estimates, beat the sean example of how studios Potter” and “Lord of the “These films seem to tran-
Guttentag, Jack M......R5 Nelson, Norrine...........B3 Zuckerberg, Mark.......A2 quels “Fifty Shades Darker,” pounce on any hit they can to Rings”—and “King Kong” and scend age and gender,” said
from Comcast Corp.’s Univer- try to give it sequels and “Doctor Who,” made by other the studio’s president of
sal Pictures, and “John Wick: spinoffs on the big screen and companies. world-wide marketing and
Chapter 2” from Lions Gate
Samsung Heir Called In Entertainment Corp., which
also opened well with $46.8
synergies in other businesses.
Warner already makes a
line of “Lego” videogames,
“The idea is to replicate a
child’s play experience, which
means you don’t just use a
distribution, Sue Kroll.
Stronger competition was
also a factor in a lower start
For Fresh Questioning million and $30 million, re-

spectively.
It was the first time in
and it is releasing toys and
other products in partnership
with Lego A/S. Warner used
single franchise, but you mix
it up,” said Dan Lin, a pro-
ducer of the “Lego” films.
for “Fifty Shades Darker”
than its predecessor, “Fifty
Shades of Grey,” which made
BY EUN-YOUNG JEONG But a South Korean court de- seven years that three movies Lego-animated versions of Unlike the serious tone its debut to $85 million two
nied the warrant, saying it opened to more than $30 mil- some of its television shows, prevalent in many big-budget years ago.
SEOUL—South Korean couldn’t see the “reason, ne- lion on the same weekend, ac- such as “The Big Bang films, the “Lego” movies are “Fifty Shades Darker” per-
prosecutors summoned Lee cessity and appropriateness of cording to measurement and Theory,” to promote the “Bat- self-aware and silly. Batman, formed better than its ani-
Jae-yong, the third-generation an arrest.” analytics company comScore. man” release. voiced by Will Arnett, is mated competition interna-
heir of the Samsung conglom- On Sunday, a spokesman The “Batman” opening was A key to its success seems preening and obnoxious to tionally, however, grossing
erate, for a fresh round of for the special prosecutor said lower than the $69 million to be the interactions of char- the outside world while se- $100 million, compared with
questioning Monday, seeking Mr. Lee would be questioned start on the same weekend acters from different fran- cretly lonely. The film mocks a $37 million overseas start
answers about his role in a based on additional findings three years ago for the first chises. Batman was a support- previous versions of the char- for “Lego Batman.”
political corruption scandal. from the past few weeks. “Lego Movie,” a surprise hit. ing character in “The Lego acter from the 1960s televi- The second “John Wick,” an
Special prosecutors had Prosecutors could consider That film faced weaker com- Movie” whose popularity sion series through last year’s action series starring Keanu
previously summoned Mr. seeking another arrest war- petition, however. earned him a spinoff. His new “Batman v Superman: Dawn Reeves, more than doubled the
Lee, the 48-year-old vice rant for Mr. Lee, said the The first “Lego” was a sur- film features not only friends of Justice.” $14.4 million opening of the
chairman of Samsung Elec- spokesman. prise success that grossed and enemies from the comic “This is meant to be an en- original in 2014.
tronics Co., as a bribery sus- Mr. Lee arrived at the
pect in the scandal, as au- prosecutor’s office Monday
thorities attempted to zero in
on payments made by Sam-
sung to organizations linked
to the impeached president’s
with a grim look on his face.
“I will sincerely tell the
whole truth to the special
prosecutor today,” he said in
DOW ronment, where investors ex-
pect relaxed regulations,
higher interest rates and in-
creased spending on infra-
Dow Riding High
The blue-chip index has outperformed the S&P 500 since Election Day.
confidante. southern Seoul. A protester Continued from the prior page structure under the Trump ad- 10%
could be heard shouting in sisted after the blue-chip ministration.
the distance, “Put Lee Jae- benchmark last month topped Jonathan Golub, chief eq-
yong in jail.” 20000 for the first time in its uity strategist at RBC Capital 8
Last month, Shortly after Mr. Lee’s ar- history. Renewed demand for Markets, last month recom-
prosecutors grilled rival, Park Sang-jin, a Sam- the Dow comes although more mended that investors tar-
sung Electronics president fund dollars hew to indexes in- get ETFs linked to Dow instead 6
Lee Jae-yong and head of the Korea cluding the S&P 500. of the S&P 500 for the foresee-
for 22 hours. Equestrian Federation, en- Some $36 billion in assets able future because the Dow is
tered the prosecutor’s office were indexed directly to top-heavy with financial and 4
for questioning. the Dow at the end of 2015 in industrial stocks that are likely Dow Jones
A day earlier, prosecutors funds and products, less than to benefit most from policy Industrial Average
Prosecutors have accused also summoned Chang 2% of the $2.1 trillion for the changes. The Dow is up 11% ▲11% since Nov. 8
2
Samsung of having contrib- Choong-ki, deputy director of S&P 500, according to since Nov. 8, versus 8.3% for
S&P 500
uted about 43 billion Korean Samsung’s corporate strategy S&P Dow Jones Indices. the S&P 500.
▲8.3%
won ($36.6 million) in bribes office, the conglomerate’s con- Money continues to flow Component stocks of
to entities linked to President trol tower. into the Dow ETF though the Dow are selected by the 0
Park Geun-hye’s longtime On Monday morning, pros- many financial professionals index committee that includes Nov. Dec. Jan. Feb.
friend, Choi Soon-sil, in ex- ecutors said they had fin- consider the Dow to be editors of The Wall Street Source: WSJ Market Data Group THE WALL STREET JOURNAL.
change for the government’s ished questioning Mr. Chang anachronistic because it uses Journal, which is published
backing on a contentious but haven’t yet decided an unusual methodology to or- by Dow Jones & Co., a part example, some $992 million gests that at least one large in-
merger of two Samsung affili- whether to seek a warrant dering its stocks: The Dow’s of News Corp. Dow Jones sold poured into the Dow ETF on stitution jumped on board.
ates in 2015. for his arrest. price weighting gives greater a majority stake in its index Feb. 3, the biggest one-day in- “Given the voracity of the
Last month, prosecutors Samsung has denied its in- influence to components with business in 2010 and the re- flux since April 2008, accord- fund flows, these appear to be
grilled Mr. Lee for 22 hours volvement throughout the the highest prices. maining stake in 2013. ing to data from FactSet. from all walks of life, from re-
and subsequently sought an scandal. “Samsung did not Strategists say that Recent flows indicate that While there is no way to know tail to institutional,” said Matt
arrest warrant for him. They make contributions to receive the Dow’s quirky composition the Dow ETF is stoking inter- for sure, the one-day windfall Bartolini, head of SPDR Ameri-
accused Mr. Lee of bribery, favors,” the company said of 30 stocks is uniquely placed est from mom-and-pop and in- is so far beyond the typical de- cas research at State Street
embezzlement and perjury. again last week. to excel in the current envi- stitutional investors alike. For mand for the ETF that it sug- Global Advisors.
CAR emission cars.

“I don’t see how Mr.
Trump can change the mind
of California,” said Mike
there is. “The facts on the
ground aren’t anywhere
close to” suggesting people
want electric cars, said John
car sales even when higher
fuel prices boosted pur-
chases. Many shoppers opted
for cheaper small cars with
A CARB spokesman said
demand for zero-emission
vehicles “continues to
grow,” and pointed to more
sions targets “will not ulti-
mately lead to the [green-
house gas] reductions
needed to reach our climate
Continued from the prior page Jackson, chief executive at Bozzella, head of a Washing- conventional gas engines than 250,000 on the road in and our air-quality targets,”
About a week before Inau- AutoNation Inc., the largest ton group representing for- when fuel prices rose. California and more than a he said. “That is why we
guration Day, the EPA made dealership chain in the U.S. eign car companies with U.S. Mitch Bainwol, head of an- half million across the U.S. need our separate and dis-
a final determination that “There may be a Trump rev- operations. other Washington lobbying over the past five years. tinct policy.”
the emissions and mileage olution in America. But Sac- “With fuel prices where group representing a dozen “We disagree with the char- California and the states
targets should remain un- ramento has carved out a they are, there isn’t demand auto makers, estimated com- acterization that consumers that follow its vehicle-emis-
changed. An adviser to Mr. mandated position.” for these vehicles that plying with CARB’s regula- don’t want these cars,” he sion guidelines represent
Trump previously pledged California’s waiver dates matches the requirements tion adds an estimated $356 said. 40% of Audi AG’s U.S. busi-
the standards would be re- to 2012. The state would under the mandate,” he said. on average to the price of a The Obama administration ness, said Scott Keogh, the
viewed, but changing them need another waiver to con- “It’s just math.” vehicle, including conven- once targeted putting a mil- luxury manufacturer’s top
could take time and face le- tinue and toughen its cur- Auto makers have received tional gasoline-engine mod- lion electric vehicles on U.S. American executive. He is
gal obstacles. rent vehicle-emissions regi- criticism for years from envi- els, according to congressio- roads by 2015. hopeful electric cars will
Regardless, California will men beyond 2025. ronmentalists, officials and nal testimony. That in part The CARB spokesman said catch on as more hit show-
still force auto makers’ hand Auto-industry lobbyists some customers for failing to comes from increasing prices the zero-emission cars pro- rooms.
over the same time span. contend California should produce electric cars and of gasoline-powered vehicles gram is needed to buttress “There is going to be a
California environmental look at sales results and take other alternative-fuel vehicles to subsidize losses from elec- “modest” nationwide regula- market for people who want
regulators have a waiver into account that govern- in swelling numbers. But tric cars sold at prices that tions the agency joins the to drive the future,” he said.
from the EPA that allows the ment tax credits play a role such vehicles have remained can attract customers but EPA in crafting. —Adrienne Roberts
state’s separate rule on zero- spurring what little demand a tiny share of overall U.S. don’t cover production costs. U.S. mileage and emis- contributed to this article.
THE WALL STREET JOURNAL. Monday, February 13, 2017 | B3
BUSINESS NEWS
Weaker Prince’s Estate Is Roiled Again

Yen Buoys Lawyers who advise
Japanese the pop singer’s heirs
differ over best way
Companies to manage his legacy
BY MEGUMI FUJIKAWA BY HANNAH KARP
TOKYO—Japanese compa- LOS ANGELES—Two law-

nies are raising their earnings yers who have been vying for
forecasts thanks to the recent control over the estate of the
sharp weakening of the yen, al- late pop star Prince were de-
though many are wary of being nied official roles by a judge
knocked off course by the trade last month. But neither man is
policies and comments of U.S. going anywhere.
President Donald Trump. Veteran entertainment at-
More than 200 companies torney L. Londell McMillan
listed on the first section of the and CNN political commenta-
Tokyo Stock Exchange—many of tor Van Jones were close ad-
them large exporters such as visers to Prince at different
Toyota Motor Corp.—upgraded times in his life. Following the
their profit forecasts for the fis- reclusive artist’s drug-over-
cal year through March 31 when dose death on April 21, the
reporting results for the latest two have ignited a family feud
quarter in recent days, accord- among his six known heirs—a
ing to data compiled by SMBC sister and five half-siblings—
PHOTOSHOT/EVERETT COLLECTION
Nikko Securities. Only 76 firms over issues including the

lowered their predictions. singer’s legacy, a memorial
Of 1,446 first-section com- concert and the lawyers’ own
panies with fiscal years ending conflicts of interest.
in March, 81% had reported Both men were in Los Ange-
their third-quarter results as les this week ahead of the music
of Thursday. industry’s Grammy Awards on
“Japanese companies tend Sunday. The same day, Prince’s
to be cautious about profit catalog started becoming avail-
projections. But they’re revis- able for the first time since be- Prince’s estate includes nearly $1 million in gold bars and $25 million in real estate. It now belongs to his six estranged heirs.
ing their full-year projections fore his death on major music-
early, suggesting that near- streaming services such as listing help from fans, even
term momentum for profits is Spotify AB and Apple Inc.’s Ap- though “it would have cost a Prince’s ‘Vault’ bought licensing rights to Prince’s copyrights on some of them
strong,” said Masayuki ple Music, said Access Indus- lot.” 25 independently released al- will expire in coming years and
Kubota, chief strategist at Ra- tries’ Warner Music Group, the “I’m here to make sure the Finds New Home bums and most of his “highly an- will now go to Universal Music
kuten Securities. record label that issued most of legacy of Prince does not go ticipated trove” of unreleased as part of its deal.
his hits. afoul from how he lived his Universal Music purchases works known as “the vault.” In June, Warner Music will
The development comes life,” he said. Prince hadn’t licensing rights to most of the The record company spent also release its own two albums
nearly a year after Prince’s wanted to license his music to late artist’s unreleased works about $30 million on the deal, of music from the vault—tunes
More than 200 death and offers a window into most streaming services—save which is good for at least five Prince recorded while under con-
companies upgraded Mr. McMillan’s vision for how Jay Z’s Tidal—during his life, years, according to people fa- tract there but never released.
best to manage the estate—a Mr. McMillan and others close Entertainment attorney L. miliar with the matter. It also Global Music Rights, the
their profit forecasts view that differs in some re- to him said. Londell McMillan and music in- made a deal last year to admin- three-year-old performing-rights
for the fiscal year. spects from that of Mr. Jones. Mr. Jones, 48, on the other dustry veteran Charles Koppel- ister the publishing rights on group launched by music man-
“Prince did not rush to put hand, has seen more urgency man have helped sell rights to his entire catalog world-wide. ager Irving Azoff, was chosen by
all of his music on streaming— in introducing Prince’s music license various aspects of Warner Music Group, which the estate last year to collect
why should we?” said Mr. to new fans to keep his legacy Prince’s music to several differ- issued his first 18 albums, songwriting royalties when
The main driver of the shift McMillan, 50 years old, in an in- alive, especially as the anni- ent companies. maintains its majority owner- Prince’s works are played on the
is a surge in the dollar to a 10- terview, having helped negotiate versary of his death ap- Vivendi SA’s Universal Music ship of those works in perpetu- radio and streaming services.
month high against the yen. the latest licensing deals on the proaches, people familiar with Group said Thursday that it had ity overseas, though its U.S. —Hannah Karp
Late Friday in Asia, the dollar estate’s behalf as one of the two the matter said. He could also
bought around ¥113.70, com- court-appointed advisers to the parlay his own current fame
pared with a low of nearly ¥101 estate’s interim administrator, as a pundit and documentar- Mr. McMillan said that the mated at roughly $200 mil- one of his record deals, began
during the December quarter. Bremer Trust. He no longer has ian into opportunities for the sold-out show was a success. lion—about half of that after representing the late singer’s
The dollar’s rebound has been that title with Bremer’s replace- estate, these people added. Prince loathed the notion of taxes—and now belongs to his half-brother Omarr Baker in
spurred by expectations that ment, Comerica Bank & Trust, In a court filing last month, entertainment executives ex- six estranged siblings, under August and his younger sister,
Mr. Trump’s policies will boost which took over in January. Mr. Jones’s team said that the ploiting his music for their Minnesota state law. Assets in- Tyka Nelson, in December. Mr.
U.S. inflation and growth. Mr. McMillan added that if Prince tribute concert Mr. own gain and opted whenever clude nearly $1 million in gold McMillan, who considered
Japanese companies have he had been in control from McMillan organized in October possible to manage his own af- bars, $25 million in real estate himself Prince’s “co-pilot” and
been trying to build up toler- the get-go, he would have was mismanaged and “has not fairs, according to many who and a “vault” of recordings “COO” in the ‘90s, has won the
ance to the yen’s fluctuations more aggressively policed the been produced into a televi- knew him. Nonetheless he left that Prince never released, ac- allegiance of Prince’s other
by currency hedging and mov- videos of Prince’s music that sion event or documentary no will, leading to the current cording to court filings. half-siblings: Sharon Nelson,
ing some of their production popped up without the estate’s that could enhance and build fights over his estate. The es- Mr. Jones, who met Prince Alfred Jackson, John Nelson
sites outside of Japan. Firms permission after his death, en- the Prince brand.” tate’s value has been esti- in 2008 and helped negotiate and Norrine Nelson.
don’t typically disclose their
hedging strategy in detail.
Besides the yen, Japanese
companies are gaining a tail- 2016 ANNUAL RESULTS
wind from improvements in the
U.S. and Chinese economies, a
recovery in commodity prices
and increasing private-sector in-
BENJAMIN MANSER/ASSOCIATED PRESS
vestments, such as in the Inter-

net of Things, Mr. Kubota said.
Despite the rosy outlook,
some corporate executives
have expressed concerns
over unpredictability in the
The Nouvelle Route du Littoral on Reunion Island, Francis Vigouroux/VINCI photo library
currency market and global

economy stemming from the
Trump administration’s poli-
cies. Mr. Trump has accused
Japan of unfair trade advan- A Swiss municipal worker prepared to count votes on Sunday.
tages and manipulation of ex-
change rates.
“It is very difficult to fore-
cast the impact of the Trump Swiss Vote Defeats
Corporate Tax Plan
administration. We will con-
tinue to monitor the situation,”
Toyota Motor Chief Accounting
Officer Tetsuya Otake said at a
Revenue: € 38.1 billion A remarkable performance
recent news conference.
"VINCI’s overall performance in 2016 was remarkable:
The closely watched meet- BY BRIAN BLACKSTONE He said it was unlikely that Ebit margin (operating income
ing Friday between Mr. Trump a new program would be in while consolidated revenue stabilised, VINCI achieved
from ordinary activities/revenue)
and Japanese Prime Minister ZURICH—Swiss voters replace by January 2019, which strong growth in operating income and net income
improved 120 bp to 11.0 %
Shinzo Abe in Washington jected a corporate-tax-over- is when the tax overhaul was and maintained free cash flow at a high level.
gave a relief to Japanese ex- haul plan backed by the gov- scheduled to go into effect. In Contracting, business levels were down slightly but
porters, at least for now. ernment and business, in a Swissmem, an association Growth of net income
order volumes grew in all three business lines in
In addition to having potential blow to the wealthy Alpine of mechanical- and electrical- attributable to owners of the
effects in the foreign-exchange country’s hopes to bring its engineering companies, said in France. In Concessions, VINCI Autoroutes saw firm
parent: € 2,4 million (up 16.2 %)
1
market, Mr. Trump’s antagonism tax policies in line with in- a written statement after the traffic growth. VINCI Airports became one of the
toward free trade could be a blow ternational norms while vote: “The rejection of this re- world’s top 5 airport operators due to strong organic
to air carriers, said Yuji Hirako, ex- maintaining its global com- form leads to legal uncertainty Strong free cash flow: € 2.9 billion
growth and further expansion in Japan, the Dominican
ecutive vice president at ANA petitiveness. which could have negative
Holdings Inc., the parent of All In rebuffing the govern- consequences on the invest-
Republic and France. VINCI Highways also stepped up
Order book at 31/12/2016: its international expansion, with a contract in
Nippon Airways Co. ment’s proposals, voters were ment activities of enterprises.”
€ 27.4 billion, i.e. about 10 months
Mr. Trump has also raised swayed by concerns the plan The rejection of the govern- Colombia and an acquisition in Peru. Lastly, testing
the prospect of a border tax was too generous to corpora- ment’s tax plan was wide- of average business activity
started on the new high-speed rail line between Tours
on products arriving from out- tions at the expense of indi- spread across nearly all of and Bordeaux; the line is expected to come into
side the U.S., a move that vidual taxpayers. Proponents Switzerland’s 26 cantons, or Dividend : € 2.10 per share
2
would likely hit hard in Japan, of the plan said its rejection individual states. One of the service in July 2017.
whose economy relies heavily places Switzerland’s econ- few to vote in favor was Vaud Despite uncertainty regarding the global economy,
on exports. omy—home to corporate gi- in western Switzerland, which (1) Excluding non-recurring changes in deferred tax. VINCI has started 2017 with confidence and aims to
—Mayumi Negishi ants including Nestlé SA and is home to Nestlé. (2) Dividend proposed to the Shareholder’s General achieve further growth in its results."
and Sean McLain UBS Group AG—at risk. Switzerland faces pressure Meeting on 20 April 2017. Since an interim
dividend of €0.63 per share was paid Xavier Huillard,
contributed to this article. According to preliminary from the European Union to in November 2016, a final dividend of €1.47
results released by the govern- get rid of the special deals per share will be paid in cash on 27 April 2017. Chairman and CEO
ment, 59% of voters cast bal- that individual cantons strike
Currency Impact lots against the proposed with multinational companies
changes, which parliament ap- that reduce their tax burdens.
The dollar has strengthened since
proved in 2016, while 41% Switzerland’s average cor-
the election, weakening the yen Agenda
were in favor. The referendum porate tax, about 21%, is lower
130 Yen per U.S. dollar results are binding, meaning than in other developed econ- 20 April: Shareholders’ General Meeting at the Carrousel du Louvre, in Paris
U.S. election parliament must come up with omies including the U.S., Ger- The 2016 annual results press release and presentation are available in French
120 a new tax-overhaul plan. many and Japan, according to and English on VINCI’s website: www.vinci.com
Swiss Finance Minister Ueli the Organization for Economic
110
Maurer said Sunday that Swit- Cooperation and Development.
100
zerland was committed to Switzerland isn’t in the EU,
changing its corporate tax sys- but it agreed with it in 2014 to A global player in concessions and construction
2016 ’17 tem but that there wasn’t abolish the special arrange-
Source: WSJ Market Data Group much wiggle room to revise ments that taxed foreign and
THE WALL STREET JOURNAL. the plan that was voted down. domestic revenue differently.
B4 | Monday, February 13, 2017 THE WALL STREET JOURNAL.
TECHNOLOGY WSJ.com/Tech
Trump Tests Tech Industry Bank Hacks Are

Changes are possible
for U.S. regulations
Similar to Sony’s
governing web traffic BY ROBERT MCMILLAN banking attacks. The group’s
bank hacking previously had
and customer privacy Cybersecurity specialists focused on Asia, said Eric
have found evidence suggest- Chien, technical director of Sy-
BY JOHN D. MCKINNON ing that recent attacks on in- mantec’s Security Technology
stitutions in Poland are part of and Response division.
In his first weeks in office, an international hacking effort “We never saw them do
U.S. President Donald Trump targeting financial institutions anything, for example, to the
has shown a readiness to take in the U.S., Mexico and the U.S., let alone Europe,” he
on the technology industry, United Kingdom—a breach said. “Now we see them tar-
clashing with Silicon Valley in that shares traits with the geting the U.S. and Europe.”
ways that his tech-friendly 2014 attack on Sony Corp. In November, the Federal
predecessor hardly ever did. The hacks began late last Bureau of Investigation
The president’s executive year, installing unauthorized warned U.S. financial institu-
order on immigration, which code on websites belonging to tions that it was “monitoring
generated an outcry from the financial regulators, then us- emerging reports indicating
industry, was only the start. ing those to attack computers that well-resourced and orga-
Trump-appointed regula- belonging to a select list of nized malicious cyber actors
tors have begun scaling back global financial institutions, have intentions to target the
CHRIS KLEPONIS/CNP/ZUMA PRESS
net-neutrality regulations that according to researchers who U.S. financial sector.”

marked one of the tech indus- have examined the attacks at The FBI didn’t respond to
try’s most significant victories security vendors Symantec requests for comment about
during the Obama era. That Corp. and BAE Systems PLC. the latest attacks.
rule requires that internet-ser- It is unclear to the re- The attacks started in Octo-
vice providers don’t give pri- searchers exactly how many ber by compromising the web-
ority to some traffic—a policy banks were compromised or site of the Polish Financial Su-
that companies such as Face- whether any suffered financial pervision Authority, an
book Inc. and Netflix Inc. like, losses. incident that was reported last
because it assures them the Intel will invest $7 billion in an Arizona facility. CEO Brian Krzanich at the White House last week. But the researchers say it week by the Badcyber.com
same basic treatment that ri- appears to be part of a well- blog.
vals would get. come to Silicon Valley. allow American business to 3,000 high-skill jobs. organized and broad hacking The hackers programmed
Regulators also are likely to Firms from other sectors of have an environment in which Intel officials praised Mr. effort that shares links to that website to attack banking
undo customer-privacy restric- the economy have had high-pro- it can be unleashed.” Trump’s tax and regulatory other attacks including the computers that visited the
tions imposed under the Obama file clashes with the new admin- He added that while the ad- policies for promising to make devastating 2014 hack that de- site, the researchers say.
administration that critics say istration, particularly the big ministration believes there the U.S. an “advantageous” stroyed systems and exposed A Polish Financial Supervi-
disadvantaged cable and wire- U.S. auto companies. Still, some have been “flaws” in the visa place to manufacture. email messages at Sony Pic- sion Authority spokesman
less companies such as Charter executives fear the number of program for high-skilled work- Despite the upbeat meeting, tures Entertainment. confirmed that the regulator
Communications Inc. and potential issues dividing the ers, necessary changes can be conflict over immigration policy U.S. officials have said had “identified an external at-
AT&T Inc. in their competition Trump administration and the made “in a way that supports continues to play out between North Korea was responsible tempt to interfere in the oper-
with internet firms. tech community could make the what these [high-tech] compa- the administration and the high- for that attack. North Korea ating IT system,” and had
New Attorney General Jeff industry a target. nies currently need.” tech community including Intel, has denied that, though said turned over evidence of the in-
Sessions, like Mr. Trump, has The administration, seeking one of numerous companies its supporters might have cident to law enforcement af-
been a critic of the tech indus- to minimize the conflict, has that filed court papers to op- done it. ter restoring the website.
try’s ability to keep customers’ underscored its aggressive ef- pose the executive order. Researchers at BAE Sys- The Polish National Police
communications and data from forts to improve the business
Trump is clashing Scores of tech companies, tems and Symantec say that Agency didn’t immediately re-
the government. Many tech- climate, including for Silicon with Silicon Valley in along with a few nontech com- some of the software and in- spond to a request for com-
and privacy-policy experts ex- Valley, and to boost job cre- panies, joined in a friend-of-the- ternet infrastructure in the ment Friday.
pect the new administration to ation.
ways that Obama court brief opposing the order. global effort also was used in The hackers programmed
be aggressive in its efforts to “Big picture, we’re not go- hardly ever did. Alphabet Inc. unit Google, Ama- the Sony attack and—more re- the hacked web servers to at-
broaden the government’s au- ing to agree on everything” zon.com Inc. and Facebook all cently—other attacks on banks tack computers only if they
thority, particularly where na- with the tech sector, “and it’s declined to comment. in Asia. originated from a short-list of
tional security is involved. not our job to agree on every- Many tech firms want to Security researchers call about 75 institutions—an ap-
Moreover, given some past thing,” Reed Cordish, an ad- Mr. Trump showcased his minimize the potential for con- the North Korea-linked group parent effort to keep a lower
comments by Mr. Trump and viser to the president on tech- emerging strategy on Wednes- flicts. “Certainly there’s broad they believe is behind these profile and help evade detec-
his aides, many companies nology initiatives, said in an day in a meeting with execu- concern from this week-one ex- attacks “Lazarus.” It has been tion, the researchers say.
worry that the administration interview. “It’s our job to pro- tives of semiconductor maker ecutive order, but we recognize active since 2009, according to This list includes 19 finan-
plans new restrictions on visas tect the American people and Intel Corp. in the Oval Office. that the first week will not de- Kaspersky Lab ZAO, a Russian cial institutions in Poland, 15
for high-skilled workers from the American worker to the The executives announced a $7 fine this presidency,” said Mi- cybersecurity company. in the U.S., nine in Mexico, and
abroad, among other potential full extent possible. We think a billion investment in an Ari- chael Beckerman, president of If the recent attacks are in- seven in the U.K., said BAE
changes to the immigration great way to do that is sup- zona manufacturing facility the Internet Association, an on- deed by Lazarus, it suggests Systems, which declined to
system that could be unwel- port American business and that they said will create some line-trade group. the group is broadening its name the institutions.
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The real risk isn’t that in- In Ms. Layton’s view, the
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Continued from page B1 Rather, it’s that any would- Investors are proceeding
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video from competing services away with it completely. more difficult to predict.
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THE WALL STREET JOURNAL. NY Monday, February 13, 2017 | B5
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MARKETS DIGEST
Dow Jones Industrial Average S&P 500 Index New to the Market
Last Year ago Last Year ago
20269.37 s 197.91, or 0.99% last week Trailing P/E ratio * 20.58 16.78 2316.10 s 18.68, or 0.81% last week Trailing P/E ratio * 24.48 20.58 Public Offerings of Stock
High, low, open and close for each of P/E estimate * 17.38 14.59 High, low, open and close for each of P/E estimate * 17.75 15.25
Dividend yield 2.41 2.79 Dividend yield 2.04 2.39
IPOs in the U.S. Market
the past 52 weeks the past 52 weeks
All-time high 20269.37, 02/10/17 All-time high: 2316.10, 02/10/17 None expected this week
Lockup Expirations
Current divisor 0.14602128057775
20600 2300 None expected this week
65-day moving average
19800 2225
IPO Scorecard
Performance of IPOs, most-recent listed first
% Chg From % Chg From
19000 2150 Company SYMBOL Friday3s Offer 1st-day Company SYMBOL Friday3s Offer 1st-day
IPO date/Offer price close ($) price close IPO date/Offer price close ($) price close
Foundation Building Materials 15.50 10.7 ... Invitation Homes 21.02 5.1 5.1
18200 2075 FBM Feb. 10/$14.00 INVH Feb. 1/$20.00
200-day moving average Clipper Realty 13.50 ... ... Laureate Edu 13.26 –5.3 0.1
CLPR Feb. 10/$13.50 LAUR Feb. 1/$14.00
Week's high 17400 2000
Sachem Capital 5.04 0.8 ... Jagged Peak Energy 14.48 –3.5 1.0
DOWN UP SACH Feb. 10/$5.00 JAG Jan. 27/$15.00
t
Monday's open Friday's close Kimbell Royalty Ptnrs 20.00 11.1 –3.1 JELD-WEN Holding 29.77 29.4 14.0
16600 1925
KRP Feb. 3/$18.00 JELD Jan. 27/$23.00
Friday's close Monday's open
t
200-day moving average 65-day moving average Ramaco Resources 11.89 –11.9 –12.3 Jounce Thera 20.73 29.6 20.2
15800 1850 METC Feb. 3/$13.50 JNCE Jan. 27/$16.00
Week's low
Bars measure the point change from Monday's open Sources: WSJ Market Data Group; FactSet Research Systems
15000 1775 Other Stock Offerings

F M A M J J A S O N D J F F M A M J J A S O N D J F
Secondaries and follow-ons expected this week in the U.S. market
Primary Symbol/
NYSE weekly volume, in billions of shares market Composite
t
t
Financial Flashback Expected Issuer/Business

Primary Amount
exchange ($mil.)
Friday’s
price ($) Bookrunner(s)
30
20 The Wall Street Journal, February 13, 2001 Feb. 13 Hiddn Solutions HIDDN 5.7 n.a. Arctic Securities,
Consumer Products Intl DNB Markets
10 After years of disappointing earnings, Lechters Inc. said it
0 is closing down 166 “underperforming” U.S. stores and
F M A M J J A S O N D J F laying off 725 people, or 30% of its total work force. Off the Shelf
* P/E data based on as-reported earnings from Birinyi Associates Inc.
“Shelf registrations” allow a company to prepare a stock or bond for
sale, without selling the whole issue at once. Corporations sell as
Major U.S. Stock-Market Indexes Nasdaq Composite
conditions become favorable. Here are the shelf sales, or takedowns,
Latest Week 52-Week % chg s 67.36, or 1.19% over the last week:
High Low Close Net chg % chg Low Close (l) High % chg YTD 3-yr. ann.
Dow Jones
last week Takedown date/ Deal value Registration
Issuer/Industry Registration date ($ mil.) (mil.) Bookrunner(s)
Industrial Average 20298.21 20002.81 20269.37 197.91 0.99 15973.84 l 20269.37 26.9 2.6 8.7
Biotime Feb. 10 $17.5 $100.0 Raymond James & Assoc.
Transportation Avg 9411.18 9158.78 9393.79 152.23 1.65 7048.69 l 9468.77 33.3 3.9 9.4 Healthcare Feb. 2,315
5740
Utility Average 670.94 660.33 669.68 7.61 1.15 610.87 l 723.51 9.6 1.5 9.7 Sierra Oncology Feb. 9 $26.3 $150.0 Jefferies
Total Stock Market 24139.73 23743.58 24107.53 197.55 0.83 19029.42 l 24107.53 26.7 3.6 8.4 Healthcare Aug. 1,316
Barron's 400 621.17 605.02 620.30 6.71 1.09 455.95 l 620.3 36.0 3.1 8.1 5700
Helius Medical TechnologiesFeb. 9 $8.2 $100.0 Canaccord Genuity,
Nasdaq Stock Market Healthcare Dec. 23,316 Raymond James &
5660 Assoc.
Nasdaq Composite 5743.43 5649.39 5734.13 67.36 1.19 4337.51 l 5734.13 32.2 6.5 11.4
1.26 l 5226.69 xG Technology Feb. 9 $3.5 $30.0 Aegis Cptl
Nasdaq 100 5234.27 5148.06 5226.69 65.09 4019.19 30.0 7.5 13.4 Telecommunications Aug. 1,314
5620
Standard & Poor's 3 6 7 8 9 10 Houlihan Lokey Feb. 8 $234.0 $610.4 BofA ML, GS, JPM, UBS,
500 Index 2319.23 2285.38 2316.10 18.68 0.81 1864.78 l 2316.1 24.2 3.5 8.8 February Finance Jan. 27,317 Stifel, Houlihan Lokey
MidCap 400 1723.42 1683.69 1720.84 14.20 0.83 1261.89 l 1720.84 36.4 3.6 9.5 DJ US TSM Galena Biopharma Feb. 8 $17.0 $100.0 Canaccord Genuity
SmallCap 600 850.74 822.64 849.64 8.30 0.99 598.52 l 857.5 42.0 1.4 10.4 s 197.55, or 0.83% Healthcare Dec. 4,315
Other Indexes last week Parsley Energy Feb. 7 $1,116.0 $1,175.5 Credit Suisse, MS,
Oil & Gas June 5,315 BMO Cptl Mkts, JPM,
Russell 2000 1391.18 1349.43 1388.84 11.01 0.80 971.99 l 1388.84 42.9 2.3 7.5 RBC Cptl Mkts, UBS,
NYSE Composite 11390.89 11196.93 11377.72 66.98 0.59 9229.68 l 11377.72 23.3 2.9 4.2 Scotiabank, Perella
Value Line 522.27 509.67 521.84 4.83 0.93 392.00 l521.84 33.1 3.1 3.4 24150 Weinberg Prtnrs
NYSE Arca Biotech 3357.75 3259.43 3337.03 34.23 1.04 2750.71 l 3477.87 21.3 8.5 8.9 AMC Entertainment HoldingsFeb. 7 $600.0 ... Citi, BofA ML, Barclays,
NYSE Arca Pharma 493.44 482.55 491.91 7.27 1.50 463.78 l 554.66 1.9 2.2 0.8 Leisure & Recreation Dec. 21,316 Credit Suisse
24000
KBW Bank 93.49 90.94 93.14 -0.003 -0.003 59.54 l 93.71 56.4 1.5 11.1 Coherus BioSciences Feb. 7 $125.0 $400.4 JPM, Citi
PHLX§ Gold/Silver 97.20 92.85 95.42 2.50 2.69 57.24 l 112.86 57.3 21.0 0.1 Healthcare Dec. 18,315
23850
PHLX§ Oil Service 183.85 173.21 180.22 -2.90 -1.58 133.63 l 192.66 34.9 -1.9 -11.9 Golar LNG Partners Feb. 7 $119.0 ... MS
PHLX§ Semiconductor 976.43 953.91 963.05 -0.97 -0.10 571.90 l 972.14 68.4 6.2 21.4 Transportation Oct. 26,316
CBOE Volatility 11.84 10.55 10.85 -0.12 -1.09 10.58 l 25.76 -57.3 -22.7 -10.7 23700
3 6 7 8 9 10
Philadelphia Stock Exchange Sources: SIX Financial Information; WSJ Market Data Group February Public and Private Borrowing
Treasurys
International Stock Indexes Commodities and Monday, February 13 Tuesday, February 14
Latest Week 52-Week Range YTD

Currencies Auction of 13-week & 26-week bills; Auction of 4-week bills;
Region/Country Index Close % chg Low Close High % chg Last Week YTD announced on Feb.9; settles on Feb.16 announced on Feb.13; settles on Feb.16
Close Net chg %Chg % chg
World The Global Dow 2622.53 0.29 2070.15 • 2626.44 3.6
DJ Commodity 589.81 14.77 2.57 3.98
Thursday, February 16
DJ Global Index 339.70 0.62 274.54 • 339.70 4.2 Auction of 30-year tips;
194.04 0.43
DJ Global ex U.S. 224.08 0.40 184.52 • 224.08 4.7 TR/CC CRB Index 0.84 0.79 announced on Feb.9; settles on Feb.28
Global Dow Euro 2324.44 1.85 1733.59 • 2324.44 2.9 Crude oil, $ per barrel 53.86 0.03 0.06 0.26
Public and Municipal Finance
DJ TSM Global 3499.58 0.61 2819.41 • 3499.58 4.1 Natural gas, $/MMBtu 3.034 -0.029 -0.95 -18.53
Deals of $ 150 million or more expected this week
Global ex U.S. 2263.44 0.38 1863.63 • 2263.44 4.8 Gold, $ per troy oz. 1234.40 15.90 1.30 7.34
Final Total Rating Bookrunner/
Developed ex U.S. 2197.15 0.10 1843.94 • 2197.15 3.9 U.S. Dollar Index 100.71 0.98 0.98 -1.47 Sale maturity Issuer ($mil.) Fitch Moody’s S&P Bond Counsel(s)
Global Small-Cap 4820.89 0.55 3677.57 • 4820.89 4.3
WSJ Dollar Index 90.94 0.59 0.66 -2.15
Global Large-Cap 3313.61 0.62 2692.25 • 3313.61 4.1
Euro, per dollar 0.9397 0.0125 1.35 -1.15
Feb. 14 Feb. 1, 2038 Las Vegas 152.8 N.R. Aa1 AA Preliminary/
Valley Water Sherman &
Americas DJ Americas 561.78 0.86 442.01 • 561.78 4.0
Yen, per dollar 113.20 0.62 0.55 -3.25 Dt Howard
Brazil Sao Paulo Bovespa 66124.53 1.80 39808.05 • 66190.62 9.8
U.K. pound, in dollars 1.25 ... unch. 1.14
Canada S&P/TSX Comp 15729.12 1.63 12381.24 • 15729.12 2.9 Feb. 14 Aug. 1, 2047 Los Angeles 450.0 AAA Aa2 N.R. Preliminary/
Mexico IPC All-Share 47797.04 1.21 42416.44 • 48694.90 4.7 52-Week
Low Close(l) High % Chg
(Long Beach) Hawkins Delafield
Chile Santiago IPSA 3337.53 1.18 2925.50 • 3358.44 3.5 USD & Wood
DJ Commodity 441.11 589.81 32.58
Europe Stoxx Europe 600 367.39 0.91 308.75 • 367.50 1.7 l
Feb. 17 prelim. Connecticut 210.0 N.R. N.R. N.R. BoA Merrill/—
Stoxx Europe 50 3039.14 1.02 2636.71 • 3051.81 0.9 TR/CC CRB Index 158.87 l 195.82 21.00
Housing
Eurozone Euro Stoxx 351.27 –0.06 288.98 • 355.72 0.3 Crude oil, $ per barrel 29.04 l 54.06 82.95 Finance Auth
Euro Stoxx 50 3270.83 –0.07 2697.44 • 3326.15 –0.6 Natural gas, $/MMBtu 1.64 l 3.93 54.32
Belgium Bel-20 3590.95 –0.42 3141.13 • 3665.69 –0.4
Gold, $ per troy oz. 1127.80 l 1364.90 -0.38
Feb. 17 prelim. Multnomah 291.2 N.R. N.R. N.R. Piper Jaffray
France CAC 40 4828.32 0.06 3984.72 • 4922.49 –0.7 (Gresham-Barlow)
SD #10JT
Germany DAX 11666.97 0.13 8967.51 • 11848.63 1.6 U.S. Dollar Index 92.57 l 103.25 4.94
Israel Tel Aviv 1418.08 0.26 1382.34 • 1502.66 –3.6 WSJ Dollar Index 84.64 l 93.56 2.19 Feb. 17 prelim. NYS Dorm 190.6 N.R. N.R. N.R. Goldman
Italy FTSE MIB 18862.11 –1.33 15104 • 19688 –1.9
Euro, per dollar 0.87 l 0.96 5.77 Authority & Co
Netherlands AEX 489.56 0.75 391.86 • 489.56 1.3
Yen, per dollar 99.88 l 118.18 -0.05 Source:Thomson Reuters/Ipreo
Spain IBEX 35 9378.10 –0.89 7645.5 • 9549.3 0.3
Sweden SX All Share 552.68 0.56 445.00 • 552.68 3.4 U.K. pound, in dollars 1.20 l 1.49 -13.91
Switzerland Swiss Market 8456.22 1.26 7593.20 • 8456.22 2.9
Real-time U.S. stock A Week in the Life of the DJIA
U.K. FTSE 100 7258.75 0.98 5707.60 • 7337.81 1.6
Asia-Pacific
Australia
DJ Asia-Pacific TSM 1513.70
S&P/ASX 200 5720.60
1.22
1.76
1190.45
4765.3 •
• 1513.70
5807.4
6.4
1.0
WSJ
.COM
quotes are available on
WSJ.com. Track most-
active stocks, new
A look at how the Dow Jones Industrial Average component stocks
did in the past week and how much each moved the index. The DJIA
gained 197.91 points, or 0.99%, on the week. A $1 change in the price
China Shanghai Composite 3196.70 1.80 2687.98 • 3282.92 3.0
highs/lows, mutual of any DJIA stock = 6.85-point change in the average. To date, a
Hong Kong Hang Seng 23574.98 1.93 18319.58 • 24099.70 7.2
funds and ETFs. $1,000 investment on Dec. 31 in each current DJIA stock component
India S&P BSE Sensex 28334.25 0.33 22976.00 • 29045.28 6.4
would have returned $30,757, or a gain of 2.50%, on the $30,000
Japan Nikkei Stock Avg 19378.93 2.44 14952.02 • 19594.16 1.4 Plus, get deeper money-flows data and
investment, including reinvested dividends.
Singapore Straits Times 3100.39 1.92 2539.95 • 3100.39 7.6 email delivery of key stock-market
South Korea Kospi 2075.08 0.09 1835.28 • 2087.14 2.4 data. The Week’s Action
Taiwan Weighted 9665.59 2.22 8053.69 • 9665.59 4.5 All are available free at
Pct Stock price Point chg
chg (%) change in average Company Symbol Close
$1,000 Invested(year-end '16)
$1,000
Source: SIX Financial Information;WSJ Market Data Group WSJMarkets.com 7.37 3.86 26.43 Nike NKE $56.22 $1,106
3.25 3.03 20.75 Caterpillar CAT 96.31 1,047
2.36 3.83 26.23 Boeing BA 166.23 1,078
Consumer Rates and Returns to Investor Benchmark Yields and Rates 2.36 3.04 20.82 Apple AAPL 132.12 1,146
U.S. consumer rates Selected rates Treasury yield curve Forex Race 2.29 1.52 10.41 Wal-Mart Stores WMT 68.02 984
A consumer rate against its Home Equity Yield to maturity of current bills, Yen, euro vs. dollar; dollar vs. 2.26 3.96 27.12 3M MMM 179.00 1,002
benchmark over the past year notes and bonds major U.S. trading partners 1.66 1.95 13.35 Travelers TRV 119.73 978
Bankrate.com avg†: 4.69%
1.63 2.86 19.59 IBM IBM 178.68 1,086
First Citizens Bank 2.24% 5.00% 18%
6.00% Rancho Santa Margari, CA 949-459-8250 1.41 1.60 10.96 Johnson & Johnson JNJ 115.24 1,000
4.00 12 1.36 1.87 12.81 Home Depot HD 139.85 1,043
Home equity loan FirstNorthernBankandTrustCompany 3.20%
t 5.00
Palmerton, PA 800-242-4671 3.00 1.28 1.40 9.59 United Technologies UTX 111.05 1,013
6 s
4.00 Berkshire Bank 3.25% Euro Yen
s 1.27 1.58 10.82 McDonald’s MCD 125.82 1,034
Friday 2.00
t
New Hartford, NY 315-735-6106 0 1.02 0.78 5.34 DuPont DD 77.21 1,052

t
3.00 InstitutionforSavingsinNewburyport 3.25% 1.00 0.82 0.40 2.74 Verizon VZ 48.98 928
–6 s
Prime rate One year ago 0.81 1,006
t
Newburyport, MA 978-462-2344 WSJ Dollar index 0.26 1.78 Pfizer PFE 32.35
2.00 0.00 –12
MAM J J A S ON D J F Salem Five 3.25% 0.73 1.77 12.12 Goldman Sachs GS 242.72 1,014
1 3 6 1 2 3 5 710 30 2016 2017
2016 2017 Salem, MA 978-745-5555 0.64 0.56 3.84 Procter & Gamble PG 87.97 1,055
month(s) years
0.61 0.19 1.30 Cisco Systems CSCO 31.51 1,052
maturity
Yield/Rate (%) 52-Week Range (%) 3-yr chg 0.56 0.44 3.01 American Express AXP 78.48 1,064
Interest rate Last (l)Week ago Low 0 2 4 6 8 High (pct pts) Sources: Ryan ALM; Tullett Prebon; WSJ Market Data Group 0.50 0.32 2.19 Microsoft MSFT 64.00 1,030
Federal-funds rate target 0.50-.75 0.50-.75 0.25 l 0.75 0.50 0.07 0.02 0.14 General Electric GE 29.72 941
Prime rate* 3.75 3.75 3.50 l 3.75 0.50 Corporate Borrowing Rates and Yields –0.21 –0.18 –1.23 Visa V 85.90 1,101
Libor, 3-month 1.04 1.03 0.62 l 1.04 0.80 Spread +/- Treasurys, –0.21 –0.18 –1.23 J.P. Morgan Chase JPM 87.00 1,014
Yield (%) in basis pts, 52-wk Range Total Return
Money market, annual yield 0.31 0.31 0.22 l 0.32 -0.10 Bond total return index Last Wk ago Last Low High 52-wk 3-yr –0.22 –0.14 –0.96 Merck MRK 64.15 1,090
Five-year CD, annual yield 1.24 1.22 1.17 l 1.32 -0.08 –0.46 –0.52 –3.56 Chevron CVX 113.05 960
30-year mortgage, fixed† 4.06 4.19 3.43 l 4.29 -0.27 10-yr Treasury, Ryan ALM 2.409 2.496 -4.28 3.03
DJ Corporate 3.224 3.266 5.70 3.86 –0.69 –1.12 –7.67 UnitedHealth Group UNH 160.75 1,004
15-year mortgage, fixed† 3.26 3.38 2.70 l 3.50 -0.13
Aggregate, Barclays Capital 2.600 2.650 44 43 70 0.98 2.63 –0.94 –1.04 –7.12 Walt Disney DIS 109.26 1,048
Jumbo mortgages, $424,100-plus† 4.36 4.62 4.02 l 4.88 -0.09
High Yield 100, Merrill Lynch 5.332 5.418 347 341 719 20.399 3.524 –1.22 –1.02 –6.99 Exxon Mobil XOM 82.52 922
Five-year adj mortgage (ARM)† 3.44 3.66 2.97 l 4.03 -0.11
New-car loan, 48-month 3.16 3.15 2.87 l 3.38 0.25 Fixed-Rate MBS, Barclays 2.870 2.930 21 10 30 0.25 2.55 –2.31 –0.96 –6.57 Coca-Cola KO 40.58 979
HELOC, $30,000 4.69 4.69 4.29 l 4.84 -0.41 Muni Master, Merrill 2.135 2.180 9 -8 12 -0.872 3.043 –3.23 –1.18 –8.08 Intel INTC 35.34 981
Bankrate.com rates based on survey of over 4,800 online banks. *Base rate posted by 70% of the nation's largest EMBI Global, J.P. Morgan 5.744 5.821 337 337 525 14.332 6.505
banks.† Excludes closing costs. Sources: WSJ Market Data Group; S&P Dow Jones Indices. For more information on the Dow Jones
Sources: SIX Financial Information; WSJ Market Data Group; Bankrate.com Sources: J.P. Morgan; Ryan ALM; S&P Dow Jones Indices; Barclays Capital; Merrill Lynch Industrial Average and the 30 industrials, please visit www.djindexes.com
THE WALL STREET JOURNAL. NY Monday, February 13, 2017 | B6A
B6B | Monday, February 13, 2017 NY THE WALL STREET JOURNAL.
NEW OPPORTUNITIES AND RISKS

MAY 2, 2017 | WASHINGTON, D.C.
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THE WALL STREET JOURNAL. Monday, February 13, 2017 | B7
MARKETS
‘The Prophet of Wall Street’ to Retire Currencies

U.S.-dollar foreign-exchange rates in late New York trading
US$vs, US$vs,
BY PAUL VIGNA in the midst of a recession, and ish on the economy,” She pre- Fri YTDchg Fri YTDchg
her faith in equities would be re- dicted two to three years of Country/currency in US$ per US$ (%) Country/currency in US$ per US$ (%)
One of the best-known bulls warded amply. profit and dividend growth. Americas Vietnam dong .00004404 22705 –0.3
on Wall Street is retiring. She was made a Goldman “Bonds will do well, but stocks Argentina peso .0644 15.5255 –2.2 Europe
Abby Joseph Cohen, the long- partner in 1998 and was one of will do better.” It was, in retro- Brazil real .3209 3.1160 –4.3 Czech Rep. koruna .03938 25.395 –1.1
time Goldman Sachs Group Inc. dwindling number of executives spect, the very beginning of a Canada dollar .7644 1.3083 –2.7 Denmark krone .1431 6.9878 –1.2
strategist, is retiring after more who had attained Goldman’s historic bull market, and with Chile peso .001563 639.60 –4.5 Euro area euro 1.0642 .9397 –1.1
Colombia peso .0003505 2853.17 –5.0 Hungary forint .003453 289.64 –1.6
than a quarter of a century at highest rank ahead of the firm’s Ms. Cohen coming to it early, 1 1 .008833 113.21
Ecuador US dollar unch Iceland krona 0.2
the firm. Ms. Cohen is stepping 1999 initial public offering. she quickly developed a reputa- Mexico peso .0492 20.3373 –1.9 Norway krone .1195 8.3688 –3.2
down from her current post, Others from that group to tion on the Street. Peru new sol .3073 3.254 –3.0 Poland zloty .2477 4.0369 –3.6
president of Goldman’s Global leave in the past year include —In 1999, she said that the Uruguay peso .03508 28.5100 –2.9 Russia ruble .01717 58.233 –5.0
Markets Institute, which does Gary Cohn, who had been presi- market’s big gains couldn’t con- Venezuela b. fuerte .100150 9.9851 –0.1 Sweden krona .1121 8.9199 –2.1
ROB KIM/GETTY IMAGES

research into topics such as de- dent and chief operating officer; tinue indefinitely and advised Asia-Pacific Switzerland franc .9975 1.0025 –1.6
Turkey lira .2705 3.6964 4.9
mographic changes, labor-force London executive Michael Sher- clients to “take a little bit off the Australian dollar .7675 1.3029 –6.2
Ukraine hryvnia .0367 27.2300 0.5
development, pension plans, wood and private-equity pioneer table,” projecting a moderating China yuan .1454 6.8776 –1.0
UK pound 1.2486 .8009 –1.1
Hong Kong dollar .1289 7.7581 0.03
health-care expenditures, capi- Sanjeev Mehra. Just over a growth rate. But the market Middle East/Africa
India rupee .01496 66.844 –1.6
tal-markets structure, regulation dozen remain out of an original wasn’t moderating, with the Indonesia rupiah .0000751 13320 –1.5 Bahrain dinar 2.6532 .3769 –0.1
and the environment. It also 220 or so. S&P 500 up nearly 20% that Japan yen .008834 113.20 –3.2 Egypt pound .0559 17.8965 –1.3
consults with foreign govern- Ms. Cohen became famous in Abby Joseph Cohen year. Kazakhstan tenge .003099 322.64 –3.3 Israel shekel .2666 3.7508 –2.5
ments. She will remain an advi- the dot-com boom of the 1990s —In 2008, she missed the Macau pataca .1249 8.0089 1.2 Kuwait dinar 3.2773 .3051 –0.2
sory director at Goldman. for her prescient—and bullish— group of Wall Street analysts warning signs of the financial Malaysia ringgit .2253 4.4388 –1.1 Oman sul rial 2.5982 .3849 –0.02
New Zealand dollar .7202 1.3885 –3.8 Qatar rial .2746 3.641 0.03
Ms. Cohen, who started calls on the market as the tech who were quasicelebrities. crisis, as many did. She pre- Pakistan rupee .00954 104.850 0.5 Saudi Arabia riyal .2666 3.7505 –0.01
working on the Street in the bubble was taking off. She Here are some calls she dicted that the S&P 500 would Philippines peso .0200 49.915 0.6 South Africa rand .0749 13.3564 –2.5
1970s, landed at Goldman in missed later downturns, which made: hit 1675 in 2008. It closed at Singapore dollar .7039 1.4206 –1.8
1990, becoming co-chairman of somewhat dimmed her star. —At the end of 1992, as the 903, nearly 50% off from her South Korea won .0008723 1146.40 –5.1 Close Net Chg % Chg YTD%Chg
the firm’s investment-policy By 1998, she was hailed as new administration of Bill Clin- prediction. After that, she was Sri Lanka rupee .0066375 150.66 1.5 WSJ Dollar Index 90.94 –0.04–0.04 –2.15
committee. She was bullish on the “Prophet of Wall Street” and ton was putting its stamp on the Taiwan dollar .03229 30.967 –4.6 Sources: Tullett Prebon, WSJ Market Data Group
replaced as Goldman’s senior
Thailand baht .02851 35.070 –2.1
stocks even as the economy was was included among a small economy, she said: “We are bull- forecaster by David Kostin.
CLOSED-END FUNDS
Listed are the 300 largest closed-end funds as 52 wk 52 wk 52 wk Prem12 Mo Prem12 Mo
measured by assets. Prem Ttl Prem Ttl Prem Ttl Fund (SYM) NAV Close /Disc Yld Fund (SYM) NAV Close /Disc Yld
Closed-end funds sell a limited number of shares and Fund (SYM) NAV Close /Disc Ret Fund (SYM) NAV Close /Disc Ret Fund (SYM) NAV Close /Disc Ret
invest the proceeds in securities. Unlike open-end Wells Fargo Multi-Sector ERC 14.43 13.23 -8.3 8.0 Nuveen CA Muni Value NCA 10.22 10.30 +0.8 4.3
funds, closed-ends generally do not buy their shares BlackRock Science & Tech BST 21.87 19.97 -8.7 51.0 Tekla Hlthcr Investors HQH 24.23 23.73 -2.1 18.7 Swiss Helvetia Fund SWZ 12.26 10.93 -10.8 17.8 World Income Funds Nuveen CA Quality Muni NAC 15.27 14.56 -4.6 6.0
back from investors who wish to cash in their holdings. BlackRock Utility & Infr BUI 19.98 19.93 -0.3 26.4 Tekla Healthcare Opps Fd THQ 18.49 17.11 -7.5 33.0 Templeton Dragon TDF 20.51 17.85 -13.0 32.0
Instead, fund shares trade on a stock exchange. Abeerden Asia-Pacific FAX NA 4.91 NA 6.9 Nuveen MD Qual Muni NMY 14.17 12.70 -10.4 5.2
a-The NAV and market price are ex dividend. b-The CBREClarionGlblRlEstIncm IGR 8.74 7.62 -12.8 20.8 Tekla Life Sciences HQL 19.49 18.32 -6.0 25.4 Templeton Emerging EMF 15.04 13.20 -12.2 48.3 Etn Vnc Short Dur Fd EVG NA 13.98 NA 7.7 Nuveen MI Qual Muni NUM 15.09 13.53 -10.3 5.3
NAV is fully diluted. c-NAV is as of Thursday’s close. d- Central Fund of Canada CEF 12.48 NA 2.9 Tekla World Hlthcr Fd THW 15.06 14.27 -5.2 27.4 Legg Mason BW Glbl Incm BWG NA 12.53 NA 9.5 Nuveen NC Qual Muni NNC 14.63 13.05 -10.8 4.4
Prem12 Mo
NAV is as of Wednesday’s close. e-NAV assumes rights ClearBridge Amer Engy CBA 10.41 NA 124.6 Tortoise Engy Ind Fd NDP 17.24 16.87 -2.1 109.2 Fund (SYM) NAV Close /Disc Yld MS EmMktDomDebt EDD 8.55 7.69 -10.1 9.8 Nuveen NJ Qual Muni NXJ 15.12 13.30 -12.0 5.7
offering is fully subscribed. f-Rights offering in process.
g-Rights offering announced. h-Lipper data has been ClearBridge Engy MLP Fd CEM 17.70 NA 85.0 Tortoise Energy TYG 33.09 35.18 +6.3 86.8 MS Emerging Mkts Debt MSD 10.82 9.43 -12.8 6.7 Nuveen NY AMT-Free NRK 14.19 12.99 -8.5 5.2
14.06 NA 115.5 Tortoise MLP Fund NTG 21.68 21.32 -1.7 76.3 Voya Infr Indls & Matls IDE 15.34 13.80 -10.0 40.5
adjusted for rights offering. j-Rights offering has Clearbridge Engy MLP Opp EMO PIMCO Dynamic Credit PCI NA 20.82 NA 12.5 Nuveen NY Qual Muni NAN 14.83 13.84 -6.7 5.5
expired, but Lipper data not yet adjusted. l-NAV as of Tortoise Pipeline & Engy TTP 24.56 21.89 -10.9 126.7 Wells Fargo Gl Div Opp EOD 6.38 5.65 -11.4 14.9
Clearbridge Engy MLP TR CTR 14.03 NA 109.1 PIMCODynamicIncomeFund PDI NA 28.90 NA 14.3 Nuveen OH Qual Muni NUO 16.31 15.10 -7.4 5.0
previous day. o-Tender offer in process. v-NAV is
Cohen & Steers Infr Fd UTF 22.99 20.87 -9.2 34.7 Voya Gl Equity Div IGD 7.94 7.12 -10.3 32.0 U.S. Mortgage Bond Funds
converted at the commercial Rand rate. w-Convertible PIMCO Income Opportunity PKO NA 24.75 NA 10.8 Nuveen PA Qual Muni NQP 14.79 13.34 -9.8 5.7
Income Preferred Stock Funds BlackRock Income Trust BKT 6.76 6.26 -7.4 5.1
Note-NAV (not market) conversion value. y-NAV and C&S MLP Incm & Engy Opp MIE 13.29 11.88 -10.6 127.9 PIMCO Strat Income Fund RCS NA 9.21 NA 10.1 Nuveen VA Qual Muni NPV 14.03 13.10 -6.6 4.7
market price are in Canadian dollars. NA signifies that Calamos Strat Fd CSQ 11.02 NA 46.3 Nuveen Mtg Opp Term Fd JLS 25.51 24.29 -4.8 5.7
Cohen & Steers Qual Inc RQI 13.62 12.84 -5.7 32.1 Stone Harbor Em Mkts Fd EDF 14.68 15.59 +6.2 13.8 PIMCO California Muni PCQ NA 16.44 NA 5.6
the information is not available or not applicable. NS Cohen & Steers Dur Pfd LDP 26.11 25.45 -2.5 26.1 Investment Grade Bond Funds
CohnStrsPfdInco RNP 22.20 20.02 -9.8 32.4 Templeton Emerging TEI 12.68 11.52 -9.1 7.0 PIMCO California Mun II PCK NA 9.82 NA 6.1
signifies fund not in existence of entire period.
Cohen & Strs Sel Prf Inco PSF 26.60 26.74 +0.5 23.5 Blackrock Core Bond Tr BHK 14.42 13.33 -7.6 6.1
12 month yield is computed by dividing income Cohen & Steers TR RFI 13.52 12.62 -6.7 21.7 Templeton Global GIM 7.45 6.61 -11.3 4.6 52 wk
FT Interm Duration Pfd FPF 23.82 23.38 -1.8 25.2 BlkRk Credit Alloc Incm BTZ 14.50 13.12 -9.5 6.8
dividends paid (during the previous twelve months for CLSeligmn Prem Tech Gr Fd STK 19.55 20.49 +4.8 40.7 John Hancock Income Secs JHS 15.26 14.51 -4.9 6.0 Wstrn Asset Gl Def Opp Fd GDO NA 17.48 NA 7.8 Prem Ttl
periods ending at month-end or during the previous Flaherty & Crumrine Dyn DFP 25.22 25.00 -0.9 22.0
fifty-two weeks for periods ending at any time other Divers Real Asset Incm Fd DRA 18.92 16.91 -10.6 32.3 MFS Inc Tr MIN 4.66 4.39 -5.8 9.1 National Muni Bond Funds Fund (SYM) NAV Close /Disc Ret
Duff & Phelps DNP 9.72 10.70 +10.1 24.9 Flaherty & Crumrine Pfd FFC 19.38 20.03 +3.4 14.9
than month-end) by the latest month-end market price
WstAstClymr InfLnkd Fd WIW NA 11.20 NA 3.5 AllianceBrnstn NtlMun AFB 14.52 13.58 -6.5 5.1 General Equity Funds
adjusted for capital gains distributions. Duff&PhelpsGblUtilIncFd DPG 19.23 16.57 -13.8 43.2 John Hancock Pfd Income HPI 21.59 21.00 -2.7 14.5
WstAssetClymr InflLnk Sec WIA NA 11.43 NA 3.3 Blackrock Invest BKN 15.23 14.81 -2.8 5.7 Specialized Equity Funds
Source: Lipper
Eaton Vance Eqty Inco Fd EOI 13.98 12.94 -7.4 14.7 John Hancock Pfd II HPF 21.32 21.07 -1.2 19.8
John Hancock Pfd Inc III HPS 18.99 18.40 -3.1 14.2 Loan Participation Funds BlackRockMun2030Target BTT 22.94 22.61 -1.4 4.2 CUSHING MLP INFRA I MLP850.67 NA NA NA
Friday, February 10, 2017 Eaton Vance Eqty Inco II EOS 14.42 13.50 -6.4 25.7
JHancock Pr Div PDT 15.66 15.96 +1.9 29.0 Apollo Sr Fltg Rate Fd AFT 18.14 17.49 -3.6 7.0 BlackRock Municipal Trust BFK 14.19 14.26 +0.5 6.0 Griffin Inst Access RE:A 26.70 NA NA 7.4
52 wk EtnVncRskMngd ETJ 10.12 9.66 -4.5 17.5
Prem Ttl LMP Cap & Inco Fd SCD 13.94 NA 49.1 BlackRock FR Incm Strat FRA 15.03 14.82 -1.4 5.5 BlackRockMuni BLE 14.89 15.05 +1.1 6.1 Griffin Inst Access RE:C 26.41 NA NA 6.5
Etn Vnc Tax Mgd Buy-Write ETB 15.80 16.86 +6.7 28.1 Blkrk FltRt InTr BGT 14.51 14.40 -0.8 5.2 BlackRockMuni Tr BYM 14.93 14.05 -5.9 5.7 Griffin Inst Access RE:I 26.80 NA NA 7.6
Fund (SYM) NAV Close /Disc Ret Eaton Vance BuyWrite Opp ETV 14.31 15.42 +7.8 24.4 Nuveen Preferred & Incm JPI 24.67 23.87 -3.2 15.5
Nuveen Pfd Incm Opps Fd JPC 10.45 10.09 -3.4 22.9 BlackstoneGSO Strat Cred BGB NA 16.15 NA 8.4 BlkRk MuniAssets Fd MUA 13.96 14.20 +1.7 4.9 Griffin Inst Access RE:M 26.67 NA NA NS
General Equity Funds Eaton Vance Tax-Mng Div ETY 11.67 10.93 -6.3 22.5 Blackstone GSO Sr Float BSL NA 18.12 NA 6.3 BlkRk Munienhanced MEN 11.79 11.66 -1.1 5.9
Nuveen Pfd Secs Incm Fd JPS 9.76 9.60 -1.6 20.1 NexPointRlEstStrat;A 21.21 NA NA NS
Adams Divers Equity Fd ADX 15.93 13.36 -16.1 27.6 EatonVanceTax-MngdOpp ETW 10.97 10.88 -0.8 26.4 Eagle Point Credit ECC NA 17.58 NA 13.8
TCW Strategic Income Fund TSI 5.86 5.50 -6.1 12.9 BlkRk MuniHldgs Inv MFL 14.64 14.64 0.0 5.8 NexPointRlEstStrat;C 21.15 NA NA NS
Boulder Growth & Income BIF 11.23 9.18 -18.3 40.2 EtnVncTxMngGlDvEqInc EXG 9.18 8.83 -3.8 29.7 Eaton Vance FR Incm Tr EFT NA 15.38 NA 5.9
Virtus Global Dividend ZTR 12.43 11.39 -8.4 21.7 BlkRk MuniHldgs Qlty II MUE 14.05 13.36 -4.9 5.8 NexPointRlEstStrat;Z 21.16 NA NA NS
Central Securities CET 28.52 23.05 -19.2 44.2 Fiduciary/Clymr Opp Fd FMO 16.07 17.31 +7.7 110.0 EatonVnc SrFltRate EFR NA 15.03 NA 6.2
Convertible Sec's. Funds BlkRk MuniHldgs MHD 16.78 17.16 +2.3 5.9 Resource RE Div Inc:A 10.30 NA NA 22.4
CohSteer Opprtnty Fd FOF 13.66 12.39 -9.3 37.6 FT Energy Inc & Growth Fd FEN 26.55 27.27 +2.7 62.5 Eaton Vance Sr Incm Tr EVF NA 6.73 NA 5.9
AdvntClymrFd AVK 17.45 16.23 -7.0 54.5 BlkRk MuniVest MVF 9.62 10.01 +4.1 6.0 Resource RE Div Inc:C 10.29 NA NA 21.5
Cornerstone Strategic CLM 13.58 15.49 +14.1 53.4 FstTrEnhEqtIncFd FFA 15.83 14.04 -11.3 28.5 First Trust Sr FR Fd II FCT 14.28 13.87 -2.9 6.0
AllianzGI Conv & Incm NCV 6.82 6.79 -0.4 70.7 BlkRk MuniVest II MVT 15.18 16.25 +7.0 5.9 Resource RE Div Inc:D 10.46 NA NA 21.9
EtnVnc TaxAdvDiv EVT 22.42 21.83 -2.6 39.7 First Tr Engy Infr Fd FIF 20.09 19.27 -4.1 61.0 Invesco Credit Opps Fund VTA 13.22 12.47 -5.7 7.1
AllianzGI Conv & Incm II NCZ 6.10 6.12 +0.3 70.1 BlkRk MuniYield MYD 14.65 14.74 +0.6 6.1 Resource RE Div Inc:I 10.76 NA NA 21.4
Gabelli Dividend & Incm GDV 22.80 20.61 -9.6 38.6 First Tr MLP & Engy Incm FEI 16.14 16.60 +2.9 83.2 Invesco Senior Income Tr VVR 4.92 4.70 -4.5 6.3
AllianzGI Equity & Conv NIE 21.78 19.44 -10.7 29.2 BlkRk MuniYld Quality MQY 15.53 15.04 -3.2 5.9 Resource RE Div Inc:T 10.27 NA NA 21.5
Gabelli Equity Trust GAB 6.12 5.89 -3.8 40.9 Gabelli Utility Tr GUT 5.40 6.62 +22.6 32.0 Nuveen Credit Strt Inc Fd JQC 9.41 8.93 -5.1 7.0
Calamos Conv Hi Inco Fd CHY 11.22 NA 41.6 BlkRk MuniYld Qlty II MQT 13.66 13.00 -4.8 5.8 Resource RE Div Inc:U 10.31 NA NA 22.5
Genl American Investors GAM 38.88 33.09 -14.9 34.6 GAMCOGlblGoldNatRscs&Inc GGN 5.89 5.64 -4.2 38.1 NuvFloatRteInco Fd JFR 11.82 12.09 +2.3 6.2
Calamos CHI 10.94 NA 48.3 BlRkMunyldQltyIII MYI 14.23 13.95 -2.0 6.0 Resource RE Div Inc:W 10.46 NA NA 21.9
HnckJohn TxAdv HTD 25.35 24.21 -4.5 30.6 GoldmanSachsMLPIncOpp GMZ 12.27 11.55 -5.9 123.8 Nuv Float Rte Opp Fd JRO 11.77 12.75 +8.3 6.4
World Equity Funds Deutsche Mun Income Tr KTF 12.62 13.69 +8.5 6.1 RvrPrk Comm Rl Est:Inst RCRIX 10.10 NA NA NS
Liberty All-Star Equity USA 6.39 5.46 -14.6 34.0 Goldman Sachs MLPEnergy GER 9.10 8.80 -3.3 137.7 Nuveen Senior Income Fund NSL 7.01 6.97 -0.6 6.3
Alpine Tot Dyn Div AOD 9.31 8.16 -12.4 34.5 Dreyfus Mun Bd Infr Fd DMB 13.58 12.75 -6.1 5.6 SharesPost 100 27.06 NA NA 8.6
Royce Micro-Cap RMT 9.82 8.46 -13.8 50.4 John Hancock Finl Opps Fd BTO 35.01 36.03 +2.9 82.8 Pioneer Floating Rate Tr PHD 12.61 12.17 -3.5 5.9
Calamos Glbl Dyn Inc CHW 7.59 NA 41.7 Dreyfus Municipal Income DMF 9.28 9.08 -2.2 5.6 Tot Inc+ RE:A 29.12 NA NA 6.9
Royce Value Trust RVT 16.45 14.24 -13.4 54.7 KayneAndersonEngyTRFd KYE 13.46 12.95 -3.8 141.4 Voya Prime Rate Trust PPR 5.76 5.55 -3.6 5.7
Cdn Genl Inv CGI 29.32 19.37 -33.9 26.3 Dreyfus Strat Muni Bond DSM 8.33 8.39 +0.7 5.9 Tot Inc+ RE:C 28.53 NA NA 6.2
Source Capital SOR 42.53 37.19 -12.6 16.3 Kayne Anderson MLP Invt KYN 21.19 21.65 +2.2 103.6 High Yield Bond Funds
China Fund CHN 18.82 16.07 -14.6 29.0 Dreyfus Strategic Munis LEO 8.54 8.67 +1.5 5.9 Tot Inc+ RE:I 29.40 NA NA 7.2
Tri-Continental TY 26.77 23.05 -13.9 34.4 Kayne Andrsn Midstr Engy KMF 18.14 16.74 -7.7 123.7 Clough Global Opp Fd GLO 11.13 9.89 -11.1 24.1 AllianceBernstein Glbl AWF 13.77 12.76 -7.3 7.6 Versus Cap MMgr RE Inc:F 27.36 NA NA 7.8
Barings Glbl Short Dur HY BGH 21.40 20.10 -6.1 9.1 Eaton Vance Mun Bd Fd EIM 13.51 12.55 -7.1 5.4
Specialized Equity Funds Macquarie Glbl Infrstrctr MGU 24.98 21.80 -12.7 37.1 EtnVncTxAdvGblDiv ETG 16.68 15.28 -8.4 27.4 Versus Cap MMgr RE Inc:I 27.42 NA NA 8.1
BlackRock Corp Hi Yd Fd HYT 12.13 11.10 -8.5 8.0 Eaton Vance Mun Income EVN 13.00 12.66 -2.6 5.9
Adams Natural Rscs Fd PEO 23.76 20.10 -15.4 33.3 NeubergerBermanMLPIncm NML 11.56 10.53 -8.9 99.6 EatonVance TxAdv Opport ETO 22.88 22.34 -2.4 33.7 Wildermuth Endwmnt Str 12.16 NA NA 23.1
BlkRk Debt Strat Fd DSU 12.65 11.60 -8.3 6.5 EV National Municipal Opp EOT 21.73 21.60 -0.6 4.8
AllnzGI NFJ Div Interest NFJ 14.80 13.14 -11.2 32.6 Neubrgr Brm Rl Est Sec Fd NRO 5.96 5.37 -9.9 36.1 First Trust Dynamic Eur FDEU 18.07 16.64 -7.9 27.9 Wildermuth Endwmnt S:C 12.07 NA NA NS
BlackRockDurInco Tr BLW 16.89 15.90 -5.9 9.2 Invesco Adv Mun Incm II VKI 12.02 11.25 -6.4 6.4
AlpnGlblPrProp AWP 6.50 5.60 -13.8 33.5 Nuveen Dow 30 Dynamic DIAX 16.93 15.72 -7.1 31.4 India Fund IFN 26.48 23.25 -12.2 26.9 Income Preferred Stock Funds
Brookfield Real Assets RA 25.59 NA NA NS Invesco Mun Incm Opps Tr OIA 7.41 7.62 +2.8 5.3
ASA Gold & Prec Metals ASA 15.25 13.46 -11.7 45.0 Nuveen Diversified Div JDD 12.81 12.22 -4.6 43.8 Japan Sml Cap JOF 11.80 10.42 -11.7 34.0 MultiStrat Gro & Inc:A 15.74 NA NA 12.2
Credit Suisse High Yld DHY 2.78 2.75 -1.1 10.2 Invesco Mun Opportunity VMO 13.41 13.06 -2.6 6.5
BlkRk Enh Cap Inco CII 15.60 14.18 -9.1 27.8 Nuveen Engy MLP Fd JMF 14.24 14.16 -0.6 132.9 Korea Fund KF 39.03 34.89 -10.6 19.7 MultiStrat Gro & Inc:C 15.49 NA NA 11.4
DoubleLine Incm Solutions DSL 21.28 20.30 -4.6 9.0 Invesco Municipal Trust VKQ 13.37 12.65 -5.4 6.1
BlkRk Engy Res Tr BGR 16.01 14.55 -9.1 35.9 NuvNASDAQ100DynOver QQQX 20.32 20.36 +0.2 34.6 Mexico Fund MXF 16.83 15.00 -10.9 4.3 MultiStrat Gro & Inc:I 15.91 NA NA 13.0
Dreyfus Hi Yld Fd DHF 3.55 3.42 -3.7 9.5 Invesco Qlty Mun Inco IQI 13.38 12.53 -6.4 6.0
BlackRock Enh Eq Div Tr BDJ 9.33 8.40 -10.0 30.7 Nuveen Real Est Incm Fd JRS 11.63 11.30 -2.8 33.9 MS China a Shr Fd CAF 21.68 18.24 -15.9 30.2 MultiStrat Gro & Inc:L 15.57 NA NA 11.7
Blackrock Global Trust BOE 13.95 12.41 -11.0 26.0 Fst Tr Hi Inc Lg/Shrt Fd FSD 18.05 16.54 -8.4 6.3 Invesco Inv Grade Muni VGM 13.88 13.14 -5.3 6.2
NuvS&P500DynOverwrite SPXX 14.89 NA 32.0 MS Emerging Fund MSF 16.32 14.19 -13.1 24.8 Convertible Sec's. Funds
BlkRk Health Sci BME 32.77 33.46 +2.1 13.3 Guggenheim Strat Opps Fd GOF 19.58 20.36 +4.0 10.8 Invesco Value Mun Incm Tr IIM 15.89 14.96 -5.9 5.4
NuveenS&P500Buy-Write BXMX 13.81 13.21 -4.3 22.3 MS India Invest IIF 33.28 29.45 -11.5 41.6 Calmos Dyn Conv and Inc CCD NA 19.05 NA NA
BlkRk Intl Grwth&Inco BGY 6.50 5.89 -9.4 18.2 Reaves Utility Fund UTG 32.93 33.89 +2.9 44.5 Ivy High Income Opps Fund IVH 16.26 15.31 -5.8 9.99 MainStay DefinedTerm MMD NA 19.10 NA 5.8
New Germany Fund GF 15.72 13.79 -12.3 21.7 MFS Munl Inco MFM 7.24 6.86 -5.2 5.3 World Equity Funds
BlackRck Rscs Comm Str Tr BCX 10.42 8.89 -14.7 48.2 Salient Midstream & MLP SMM 15.09 14.16 -6.2 164.8 Neuberger Berman HYS NHS 13.45 12.05 -10.4 8.0
NexPoint Credit Strat Fd NHF 25.85 23.54 -8.9 12.0 NuveenAMT-FreeMunValue NUW 16.71 16.88 +1.0 4.5 BMO LGM Front ME 9.28 NA NA 23.0
Nuveen Gl Hi Incm Fd JGH 18.35 16.78 -8.6 9.2 Nuveen AMT-Free Quality NEA 14.55 13.48 -7.4 5.7 Prem12 Mo
Nuveen High Incm Dec18 JHA 10.17 10.20 +0.3 5.9 Nuveen AMT-Free Mun NVG 15.55 14.62 -6.0 5.9 Fund (SYM) NAV Close /Disc Yld
Nuveen High Incm Dec19 JHD 10.28 10.23 -0.5 NS Nuveen Mun Credit Incm Fd NZF 15.28 14.39 -5.8 6.1
Insider-Trading Spotlight Nuveen Hi Incm Nov 2021 JHB 10.07 10.11 +0.4 NS Nuveen Enhncd Mun Val Fd NEV 14.77 14.29 -3.2 6.4
U.S. Mortgage Bond Funds
Vertical Capital Income 12.33 NA NA 2.8
Trading by ‘insiders’ of a corporation, such as a company’s CEO, vice president or director, potentially conveys Pioneer High Income Trust PHT 10.67 10.00 -6.3 10.3 Nuveen Intermed Dur Mun NID 13.39 13.35 -0.3 5.1 Loan Participation Funds
new information about the prospects of a company. Insiders are required to report large trades to the SEC Prud Gl Shrt Dur Hi Yd GHY 16.62 15.07 -9.3 8.4 NuveenMuniIncoOpp Fd NMZ 12.96 13.11 +1.2 6.7 504 Fund 9.81 NA NA 3.1
Prudentl Sh Dur Hi Yd Fd ISD 16.86 15.98 -5.2 8.1 Nuveen Muni Value Fund NUV 10.06 9.88 -1.8 4.0 FedProj&TrFinanceTender 10.02 NA NA NS
within two business days. Here’s a look at the biggest individual trades by insiders, based on data received by Wells Fargo Incm Opps Fd EAD 9.29 8.53 -8.2 9.0 Nuveen Qual Mun Incm Fd NAD 14.92 13.94 -6.6 6.0 Invesco Sr Loan A 6.66 NA NA 4.9
Thomson Financial on February 10, and year-to-date stock performance of the company Wstrn Asset Glbl Hi Inco EHI NA 10.19 NA 11.1 Nuveen Sel Tax Free NXP 14.92 14.07 -5.7 3.8 Invesco Sr Loan B 6.66 NA NA 4.9
KEY: B: beneficial owner of more than 10% of a security class CB: chairman CEO: chief executive officer CFO: chief financial officer Wstrn Asset High Inco II HIX NA 7.28 NA 10.0 Nuveen Sel TF NXQ 14.40 13.54 -6.0 3.8 Invesco Sr Loan C 6.67 NA NA 4.2
CO: chief operating officer D: director DO: director and beneficial owner GC: general counsel H: officer, director and beneficial owner Wstrn Asset Opp Fd HIO NA 5.13 NA 8.1 PIMCO MuniFd PMF NA 13.89 NA 6.3 Invesco Sr Loan IB 6.66 NA NA 5.2
West Asst HY Def Opp Fd HYI NA 15.36 NA 8.5 Pimco Muni Inc II PML NA 12.52 NA 6.2 Invesco Sr Loan IC 6.66 NA NA 5.0
I: indirect transaction filed through a trust, insider spouse, minor child or other O: officer OD: officer and director P: president UT: Other Domestic Taxable Bond Funds PIMCO Muni Inc III PMX NA 11.44 NA 6.2 Invesco Sr Loan Y 6.66 NA NA 5.2
unknown VP: vice president Excludes pure options transactions Apollo Tactical Incm Fd AIF 17.41 15.92 -8.6 9.5 RiverNorth MP Lending RMPLX NA NA NA NS
Pioneer Mun Hi Inc Adv Tr MAV 11.79 11.12 -5.7 7.0
Ares Dynamic Credit Alloc ARDC NA 15.76 NA 8.1 Pioneer Mun Hi Incm Tr MHI 12.66 11.83 -6.6 6.3 Voya Senior Income:A 12.80 NA NA 5.4
Barings Corp Investors MCI NA 14.65 NA 6.1 Voya Senior Income:B 12.73 NA NA 4.9
Biggest weekly individual trades BlackRock Multi-Sector IT BIT 18.78 17.29 -7.9 11.1
Putnam Tr PMM 7.76 7.31 -5.8 5.8
Voya Senior Income:C 12.77 NA NA 4.9
PutnamMuniOpportunities PMO 12.92 12.37 -4.3 5.6
Based on reports filed with regulators this past week BlackRock Taxable Mun Bd BBN 22.90 22.69 -0.9 7.1 Voya Senior Income:I 12.76 NA NA 5.7
Wstrn Asset Mngd Muni MMU NA 14.07 NA 5.5
Doubleline Oppor Credit DBL 22.25 24.01 +7.9 8.6 Voya Senior Income:W 12.81 NA NA 5.7
No. of shrs in Price range ($) $ Value WesternAssetMunTrFund MTT NA 22.88 NA 4.8
Duff & Phelps Utl & Cp Bd DUC 9.98 9.40 -5.8 6.4 High Yield Bond Funds
Date(s) Company Symbol Insider Title trans (000s) in transaction (000s) Close ($) Ytd (%) Single State Muni Bond
EtnVncLtdFd EVV NA 14.14 NA 8.1 PionrILSInterval 10.33 NA NA 9.8
Franklin Ltd Duration IT FTF NA 12.24 NA 6.8 BlackRock CA Municipal Tr BFZ 15.13 14.87 -1.7 5.5
WA Middle Mkt Dbt NA NA NA 11.0
Buyers GuggenheimTaxableMuni GBAB 23.03 22.28 -3.3 7.3 BlkRk MuniHldgs CA Qlty MUC 15.32 14.25 -7.0 5.2
Blkrck MunHl NJ Qlty MUJ 15.19 14.18 -6.6 5.8
WA Middle Mkt Inc WMF NA NA NA 11.2
John Hancock Investors JHI 18.24 17.17 -5.9 7.8 Other Domestic Taxable Bond Funds
Feb. 7 Walgreens WBA O. Barra CO 124 80.48-80.96 10,036 83.31 0.7 BlRk MuHldg NY Qlty MHN 14.48 13.92 -3.9 5.3
KKR Income Opps Fund KIO 18.00 NA NA 9.5 Capstone Church Capital 11.52 NA NA 1.1
Feb. 3 Macquarie Infrastructure MIC J. Hooke CEO 15 74.15 1,112 80.08 -2.0 MFS Charter MCR 9.43 8.64 -8.4 8.5 BlkRk MuniYld CA Fd MYC 15.29 15.90 +4.0 5.2 CION Ares Dvsfd Crdt Fd NA NA NA NS
Feb. 3 M. Stanley D 4 74.15 297 MFS Multimkt MMT 6.73 6.22 -7.6 8.6 BlkRk MuniYld CA Quality MCA 15.47 14.65 -5.3 5.4 GL Beyond Income 4.39 NA NA NE
Feb. 3 L. Stewart CFOI 3 74.15 185 Nuveen Build Am Bd Fd NBB 21.69 21.05 -3.0 6.2 BlkRk MuniYld MI Qlty MIY 15.18 13.71 -9.7 5.7 Palmer Square Opp Income 19.06 NA NA 6.6
Feb. 3 Qualcomm QCOM C. Amon O 19 53.13 1,000 54.00 -17.2 PIMCO Corporate & Incm PTY NA 15.48 NA 11.2 BlkRk MuniYld NJ Fd MYJ 15.54 15.43 -0.7 5.7 Resource Credit Inc:A 11.13 NA NA 4.7
PIMCO Corporate & Incm PCN NA 15.85 NA 11.3 BlRk Muyld NY Qlty MYN 13.88 12.97 -6.6 5.2 Resource Credit Inc:C 11.24 NA NA 4.2
Feb. 7 Murphy USA MUSA C. Deming D 15 65.39 981 66.13 7.6 PIMCO HiInco PHK NA 9.04 NA 12.5 Eaton Vance CA Mun Bd EVM 12.30 11.59 -5.8 5.5 Resource Credit Inc:D 11.10 NA NA 4.4
Feb. 3 Enterprise Products Partners EPD J. Hackett DI 33 28.65 945 28.69 6.1 PIMCO Inco Str Fd PFL NA 11.01 NA 9.9 Invesco CA Value Mun Incm VCV 13.25 12.49 -5.7 5.6 Resource Credit Inc:I 11.16 NA NA 4.8
PIMCO Incm Strategy Fd II PFN NA 9.93 NA 9.8 Invesco PA Value Mun Incm VPV 13.83 12.32 -10.9 5.7 Resource Credit Inc:T 11.09 NA NA 4.2
Feb. 1 Opus Bank OPB M. Meyer D 40 20.62 825 21.05 -30.0
Putnam Mas Inco PIM 5.06 4.70 -7.1 6.6 Invesco Inv Grade NY Muni VTN 14.36 13.56 -5.6 5.7 Resource Credit Inc:U 11.13 NA NA 4.7
Feb. 6 Tuesday Morning TUES S. Becker CEO 200 3.66 732 4.00 -25.9 Putnam Premier Income Tr PPT 5.58 5.23 -6.3 5.8 Nuveen CA AMT-Free Qual NKX 15.31 14.92 -2.5 5.6 Resource Credit Inc:W 11.12 NA NA 4.4
Feb. 3 Dominion Resources D M. Szymanczyk DI 10 71.69 717 73.37 -4.2
Feb. 2-3 Consol Energy CNX B. Lanigan D 41* 16.82-17.28 698 17.02 -6.6
Feb. 7 Newell Brands NWL M. Tarchetti P 13 45.22 588 46.99 5.2 Borrowing Benchmarks | WSJ.com/bonds
Feb. 2 Unifi UFI R. Bishop DI 20 26.74 535 28.31 -13.2
Feb. 8 Lakeland Financial LKFN M. Welch D 7 42.55 288 44.03 -7.0 Money Rates February 10, 2017
Feb. 3 New Residential Investment NRZ M. Nierenberg CEO 19* 15.00 279 15.90 1.1
Key annual interest rates paid to borrow or lend money in U.S. and international markets. Rates below are a
Feb. 3 Edwards Lifesciences EW K. Gallahue DI 3 90.10 270 90.34 -3.6
guide to general levels but don’t always represent actual transactions.
Feb. 2 Howard Bancorp HBMD R. Arnold D 16 15.00 240 17.90 18.5
29 7.85 8.42 -3.3 Week —52-WEEK— Week —52-WEEK—
Feb. 8 USA Truck USAK J. Craig O 228 Inflation Latest ago High Low Latest ago High Low
Dec. index Chg From (%)
Sellers level Nov. '16 Dec. '15 Secondary market Libor
Feb. 1-3 Microsoft MSFT G. Morfit DOI 11,000 63.12-63.72 696,540 64.00 3.0 One month 0.77111 0.77556 0.78000 0.42830
U.S. consumer price index Fannie Mae Three month 1.03622 1.03400 1.04344 0.61820
Feb. 1-2 W. Gates D 4,000 63.11-64.49 253,920
All items 241.432 0.03 2.1 30-year mortgage yields Six month 1.33822 1.34989 1.36183 0.85785
Feb. 1 TriNet Group TNET D. Hodgson DOI 17,691 25.00 442,283 24.74 -3.4 Core 249.134 –0.04 2.2 One year 1.70261 1.71344 1.73289 1.11560
Feb. 7 Credit Acceptance CACC D. Foss B 660 194.00 128,040 200.05 -8.0 30 days 3.644 3.695 3.828 2.806
Feb. 2 MACOM Technology Solutions Holdings MTSI P. Chung DI 1,202 46.55 55,936 46.14 -0.3 International rates 60 days 3.674 3.728 3.862 2.832 Euro Libor
Feb. 2-3 Evercore Partners EVR R. Schlosstein CEOI 264 77.68-79.28 20,793 78.55 14.3 One month -0.391 -0.383 -0.249 -0.394
Week 52-Week Other short-term rates Three month -0.349 -0.344 -0.201 -0.350
Feb. 3-6 American Financial Group AFG C. Lindner CEOI 200 90.88-91.00 18,182 91.55 3.9 Latest ago High Low
Six month -0.248 -0.241 -0.118 -0.248
Feb. 7 Boeing BA J. Luttig GC 102 166.74-167.22 17,022 166.23 6.8 Week 52-Week One year -0.110 -0.106 -0.005 -0.110
Prime rates Latest ago high low
Feb. 1 Danaher DHR T. Joyce CEO 196 83.74 16,439 83.98 7.9 U.S. 3.75 3.75 3.75 3.50 Euro interbank offered rate (Euribor)
Feb. 8 Alphabet GOOGL S. Brin P 17 826.33-834.04 13,851 834.85 5.4 Canada 2.70 2.70 2.70 2.70 Call money
Feb. 7 S. Brin P 17 824.91-831.29 13,812 One month -0.371 -0.373 -0.240 -0.374
Japan 1.475 1.475 1.475 1.475
Jan. 30 L. Page CEO 17 821.82-835.92 13,750 2.50 2.50 2.50 2.25 Three month -0.329 -0.328 -0.183 -0.329
Feb. 3 L. Page CEO 17 819.95-824.84 13,711 Policy Rates Six month -0.240 -0.244 -0.116 -0.244
Feb. 6 S. Brin P 17 815.39-831.55 13,659 Commercial paper One year -0.101 -0.101 -0.001 -0.103
Euro zone 0.00 0.00 0.05 0.00
Feb. 2 L. Page CEO 17 812.92-823.80 13,647
Switzerland 0.50 0.50 0.50 0.50 30 to 270 days n.q. ... ... ... Value 52-Week
Jan. 31 L. Page CEO 17 814.43-822.22 13,636
Feb. 1 L. Page CEO 17 813.32-822.63 13,588 Britain 0.25 0.25 0.50 0.25 Latest Traded High Low
Australia 1.50 1.50 2.00 1.50 Commercial paper (AA financial)
Feb. 1 ServiceNow NOW F. Slootman CEO 150 89.87-90.75 13,490 92.46 24.4 DTCC GCF Repo Index
90 days 0.89 0.91 1.03 0.45
* Half the transactions were indirect **Two day transaction Overnight repurchase Treasury 0.621 58.200 1.266 0.244
p - Pink Sheets U.S. 0.59 0.60 1.30 0.15 Euro commercial paper MBS 0.639 91.800 1.328 0.257
30 day n.q. n.q. -0.13 -0.14 Open Implied
U.S. government rates Settle Change Interest Rate
Buying and selling by sector Discount
Two month n.q. n.q. n.q. n.q.
Three month n.q. n.q. n.q. n.q. DTCC GCF Repo Index Futures
Based on actual transaction dates in reports received this past week 1.25 1.25 1.25 1.00 Four month n.q. n.q. n.q. n.q. Treasury Feb 99.395 -0.005 9231 0.605
Sector Buying Selling Sector Buying Selling Federal funds Five month n.q. n.q. n.q. n.q. Treasury Mar 99.340 0.005 4707 0.660
Effective rate 0.6800 0.6800 0.7000 0.2700 Six month n.q. n.q. n.q. n.q. Treasury Apr 99.285 0.005 2224 0.715
Basic Industries 0 29,383,111 Finance 3,680,605 199,654,704
High 0.8125 0.8125 0.8125 0.5600
Business services 0 26,886,882 Health care 653,336 58,203,290
Low 0.5000 0.5000 0.6600 0.2000 Notes on data:
Capital goods 0 0 Industrial 88,762 89,955,475 Bid 0.6500 0.6600 0.6800 0.2000 U.S. prime rate is effective December 15, 2016. Discount rate is effective December 15, 2016. U.S.
Consumer durables 10,910 13,468,190 Media 0 430,012 Offer 0.7500 0.7500 0.7500 0.2600 prime rate is the base rate on corporate loans posted by at least 70% of the 10 largest U.S. banks;
Other prime rates aren’t directly comparable; lending practices vary widely by location; DTCC GCF
Consumer nondurables 1,197,575 34,616,217 Technology 1,135,917 220,427,102 Repo Index is Depository Trust & Clearing Corp.'s weighted average for overnight trades in applicable
Treasury bill auction
Consumer services 963,614 47,909,642 Transportation 398,927 8,722,189 CUSIPs. Value traded is in billions of U.S. dollars. Futures on the DTCC GCF Repo Index are traded on
4 weeks 0.530 0.490 0.530 0.160 NYSE Liffe US.
Energy 1,735,391 9,481,974 Utilities 836,918 16,669,382 13 weeks 0.530 0.515 0.555 0.220 Sources: Federal Reserve; Bureau of Labor Statistics; DTCC; SIX Financial Information;
Sources: Thomson Financial; WSJ Market Data Group 26 weeks 0.620 0.625 0.660 0.340 General Electric Capital Corp.; Tullett Prebon Information, Ltd.
COMMODITIES BANKING & FINANCE
COHN man colleagues say. “He’s rapid

fire. Lots and lots of activity,”
said one. A Republican law-
maker who has spoken to The
Continued from page B1 Wall Street titan said he hasn’t
taking hard-edge stands on yet adapted to Washington’s
trade and immigration. Mr. slower pace and myriad con-
Cohn describes himself in non- stituencies.
ideological terms and has sig- Mr. Cohn bristles at the
naled a softer edge on globali- “brusque” description, sug-
zation. gesting his directness may be
“When you’re dealing with unusual in a city whose culture
the economy, which is my includes filibusters—endless
realm, you have to be prag- talking to prevent any action.
TAKAAKI IWABU/RALEIGH NEWS & OBSERVER/ZUMA PRESS
matic,” Mr. Cohn said in an in- “In D.C., no one when you
terview Wednesday. “You have meet them says, ‘Nice to meet
to be realistic to what’s going you,’” Mr. Cohn said. “They say,
on in the world and you have to ‘Good to see you.’ That’s because
be willing to adapt. I think that’s they pretend like they might
my job, to advise the president have met you before.... Everyone
on what is the right solution.” says, ‘Good to see you.’ Well, I
A representative for Mr. know you can see me.”
Mnuchin, who is awaiting con- Among the ways he is
firmation as soon as Monday, amassing influence is inter-
didn’t respond to interview reviewing candidates for a range
quests. of White House appointments,
Mr. Trump’s critics are trying including top posts at the Fed
to turn Mr. Cohn’s background and regulatory agencies. He
against the new administration. sidelined some campaign ad-
Fertilizer is sprayed on a North Carolina wheat field. U.S. fertilizer producers are benefiting from a shift in global energy markets. On Friday, Sens. Elizabeth War- visers, including Larry Kudlow,
U.S. Fertilizer Sector Grows

ren (D., Mass.) and Tammy the CNBC commentator who
Baldwin (D., Wis.) sent a letter had been considered last year
to Mr. Blankfein asking whether for the still-unfilled CEA post,
Goldman officials have been in according to people familiar
contact with Mr. Cohn or other with the matter.
Goldman alumni in the White Taking over at the NEC, in a
While President Donald House and whether the firm ex- role that didn’t need Senate
Trump vows to reinvigorate Changing Seasons pects to benefit from changes to confirmation, Mr. Cohn quickly
struggling American industries Production is growing in the U.S. while China’s exports are declining. financial regulation Mr. Cohn is staffed the agency with veter-
and regain ground lost to rivals pushing through executive or- ans of finance and government,
like China, the process is al- Estimates of top global urea China’s urea exports U.S. urea imports by value ders. making the council one of the
ready under way in the U.S.’s capacity additions in 2017 In million metric tons In billions A spokesman for Goldman most highly functioning power
booming fertilizer industry. In million metric tons said it had no involvement in centers in the administration.
drafting executive orders. A potential rival influence
By Lucy Craymer in 15 $3 In an interview before the on economic policy, the Na-
U.S. 2.7 executive orders were signed, tional Trade Council, has yet
Hong Kong
And Rhiannon Hoyle in Mr. Cohn said the administra- to clearly define its role. The
Sydney Nigeria 0.7 tion’s goal of deregulating fi- trade council’s chairman is
10 2
nancial markets “has nothing Peter Navarro, who is among
U.S. output of urea, a key ni- to do with Goldman Sachs” but
trogen-based fertilizer, surged Malaysia 0.6 was focused on maintaining
by around 10% last year, the nation’s dominant position
boosted by a number of new
5 1
in global banking.
Mr. Cohn has
and expanded plants in states Algeria 0.6 Several gaps remain in the buttressed his position
from Iowa to Louisiana that administration’s policy team.
helped increase total capacity There is still no Senate-con-
by interviewing job
Indonesia 0.5 0 0
by 24%. Meanwhile, output in
2012 ’13 ’14 ’15 ’16 2012 ’13 ’14 ’15 ’16
firmed Commerce secretary or candidates.
China, the world’s No. 1 fertil- U.S. Trade Representative. The
izer producer, slumped by 7% Sources: Citi Research (urea capacity); CEIC (China exports); U.S. Census Bureau (U.S. imports) THE WALL STREET JOURNAL. White House hasn’t named any
in 2016, and its exports members to the three-person
dropped by more than a third. The surge in U.S. fertilizer production fell to 39% in 2016 even better than when it was Council of Economic Advisers. the few economists in the ad-
These shifting fortunes production will likely continue from 43% a year earlier, ac- approved. The vacancies and Mr. ministration but one with lit-
aren’t due to government in- this year, as a number of long- cording to CRU Group, a com- “If the current [Trump] ad- Cohn’s proximity to the Oval tle experience navigating
tervention such as higher im- planned new plants—which typ- modities consultancy. ministration delivers on the Office—the National Economic Washington.
port tariffs or entreaties to ically take around four years to The U.S.’s cost advantage is commitments around energy Council director works in the In the first two weeks, Mr.
“buy American.” Instead, they build—come online. U.S. ammo- crucial. Producing a metric ton advantage, cutting unnecessary West Wing, unlike Cabinet sec- Navarro has made some com-
are largely due to trends in nia production capacity could of urea using gas in the U.S. red tape and developing an at- retaries—enhance his influ- bative statements on trade and
global energy markets. jump by 2 million metric tons costs $130 on average, CRU es- tractive taxation environment, ence, both inside the White currency, such as accusing Ger-
U.S. fertilizer producers are this year to around 11.4 million timates. That same trailer load that advantage will become House and throughout Wash- many of using an undervalued
benefiting from the long-brew- metric tons, Rajesh Singla, head costs between $180 and $210 a even more pronounced,” he ington, several lawmakers and euro to seek a trade advantage
ing shale revolution. The com- of agriculture research at So- metric ton using anthracite said. administration officials said. that provoked concern from
bination of hydraulic fracturing ciété Générale, estimates. coal in China. Gas makes up Dutch-owned OCI Americas The NEC post was created business leaders. Several called
and horizontal drilling has sig- Urea production capacity about 60% to 80% of produc- is meantime near completion by President Bill Clinton in Mr. Cohn to find out what was
nificantly boosted production, could rise by 4.1 million metric tion costs, depending on the ef- on a 1.5-million-to-2-million- 1993 and has been inhabited by happening, a person familiar
bringing down the cost of gas. tons this year, with at least five ficiency of a plant and the metric-ton nitrogen fertilizer powerful figures such as Rob- with the matter said. Mr. Na-
And in the U.S., gas is the massive new plants or expan- price of gas, according to pro- plant in Wever, Iowa, that ert Rubin and Lawrence Sum- varro declined to comment.
key ingredient of nitrogen- sions due to start operating, ac- ducer OCI Americas Inc. alone will increase U.S. urea mers. Washington and Wall Street
based fertilizers like urea— cording to ICIS, a market-infor- “Many inefficient [Chinese] capacity by more than 10%. On Feb. 3, Mr. Cohn went on are waiting to see how Mr.
which is mainly applied di- mation provider, put-ting the plants have quit from the in- Proximity to U.S. customers is cable television to pitch the Cohn carves up the policy port-
rectly to soils—and ammonia, U.S. on track to have 50% more dustry…12.6 million [metric] another important factor. president’s financial regulatory folio with the 54-year-old Mr.
which is typically mixed with capacity by 2020 from 2015. tons of urea capacity have been “Foreign producers have plan and huddled with Republi- Mnuchin at Treasury. Both
other products, or further re- Illinois-based fertilizer man- closed from the industry from significant logistical costs to cans on the House Financial worked at Goldman in fixed in-
fined to make urea. ufacturer CF Industries has 2013 through to 2016,” said deliver product to the U.S., in- Services Committee, promising come and made partner in
Meanwhile, their rivals in just finished one of these proj- Gavin Ju, a senior consultant cluding ocean and land freight, to support their efforts to re- 1994. Mr. Cohn became the
China have suffered from a sharp ects, an expansion of its Port for CRU in Beijing. storage and throughput fees, write banking rules. head of the fixed-income divi-
rise in the price of coal following Neal nitrogen plant in Sioux Cheap energy costs have en- which can amount to over $100 Lawmakers said Mr. Cohn sion in 2002, the same year
Beijing’s decision to limit pro- City, Iowa. ticed foreign companies like Aus- a [metric] ton depending on briefed them on the executive Mr. Mnuchin left the firm to
duction last year, restricting nor- “Given where we viewed the tralia’s Incitec Pivot Ltd., which the product,” said Ahmed El- orders and took questions, a work for hedge funds.
mally ample supplies of the fuel. long-term cost of gas in the decided in 2013 to set up an Hoshy, chief executive of OCI contrast with the much-criti- White House officials dis-
Roughly three-quarters of U.S., we thought this is the $850 million ammonia plant in Americas. cized immigration-order roll- miss talk of any budding ri-
China’s urea is produced by first right place to invest,” said Waggaman, La. The plant, which Rising urea prices as Chi- out that left elected GOP offi- valry, and the two men were
turning coal into gas. Chief Executive Tony Will. The has a capacity of 800,000 metric nese exports decline are an- cials flat-footed. seen lunching together last
“Low-cost shale gas in the plant is expected to produce tons, started operating in Octo- other positive for the fertilizer “There’s no question in the week in the White House’s
U.S. has transformed the com- 816,466 metric tons of ammo- ber and will ramp up this year. industry. early phases of the administra- mess hall.
petitiveness of a number of in- nia and 1.27 million metric tons “Because of the energy ad- U.S. producers should con- tion, he’s in the catbird seat. “I’m talking to Steve two,
dustries for which energy ac- of urea annually. vantage through the shale gas tinue enjoying margins better He’s going to play an outsize three times a day,” Mr. Cohn
counts for a high share of input As more fertilizer output revolution, U.S. fertilizer pro- than most rivals elsewhere, role,” said Jeb Mason, a Trea- said. “I’m working as well with
costs,” said Rajiv Biswas, Asia- moved to the U.S., urea im- ducers are globally among the keeping the industry boom in- sury policy adviser in the him as I can in what he’s al-
Pacific chief economist at IHS ports in 2016 slumped, drop- most competitive,” said Incitec tact and leading the U.S. to sig- George W. Bush administration. lowed to do under the statutes
Global Insight. “One of the big- ping by 34% last year. Although Pivot Chief Executive James nificantly cut its import bal- Mr. Cohn is charming when and not being sworn in yet. I’m
gest winners has been the U.S. China remains the largest ex- Fazzino, who said the Wagga- ance in the years ahead, dealing with clients, but also convinced we’ll work even bet-
chemicals industry.” porter, its share of global urea man investment now stacks up analysts at Citigroup Inc. said. can be brusque, former Gold- ter when he’s sworn in.”
Oil Companies’ Most Lucrative Market Is Low on Fuel

BY DAN STRUMPF one out of every three barrels projects were proposed four Petroleum Corp. is expanding
AND YANTOULTRA NGUI of oil is refined in Asia, and or five years ago. That’s a lot All Filled Up a refinery in Kerala province
the global refining sector proof lead time, and the oil mar- Refining margins on Dubai crude, the benchmark for oil shipped to Asia, have to more than 300,000 barrels
Oil companies’ big bet on duced an estimated 42.5% of ket is really different from five fallen sharply this year amid a glut of fuel. Analysts expect Asia's production a day.
demand in their fastest-grow- its revenue in the region last years ago.” of gasoline and diesel to exceed consumption through at least 2021. Altogether, refiners are set
ing market is getting less lu- year, according to FactSet, State-owned Petronas now to add 932,000 barrels a day
crative. down from 46.5% the year be- plans to forge ahead with the Refining margins on Dubai Crude, Gasoline and diesel surplus in new refining capacity
Energy companies are in- fore. Late last year, Nomura project alone, after unsuccess- change from previous year in millions of barrels a day across six countries in Asia
vesting billions of dollars over cut its forecast for Asian refin- fully approaching other poten- 200% this year, according to re-
1.0 ESTIMATE
the next several years in new ing margins—the amount of tial partners, according to a search firm Energy Aspects,
and existing refineries across profit that refiners squeeze person familiar with the mat- 150 roughly equivalent to Austra-
0.8 FORECAST
Asia, where consumption of out of a barrel of oil—by 17% ter. The project, which is set lia’s daily oil use.
100
refined fuels like gasoline, jet to $6.50 a barrel. Margins to refine 300,000 barrels of oil China has become a major
fuel and petrochemicals has have shrunk world-wide in re- a day, could take 10 to 20 0.6 fuel exporter for the region,
50
been increasing more rapidly cent months as oil prices have years to become profitable, thanks to rising output by in-
than in any other region. risen. the person said. 0.4 dependent refiners, known as
0
But those plans are butting The latest sign of the Aramco declined to com- “teapots,” which took advan-
up against a glut in refined fu- tougher landscape: Saudi ment. Petronas didn’t respond –50 0.2 tage of looser oil-import rules
els that analysts say could last Aramco’s abandonment of a to a request for comment. to churn out more fuel. China’s
–100 0
for years—a side effect of joint venture with Malaysia’s For years, Asia has been the fuel exports soared 34% last
slowing demand in China and Petroliam Nasional Bhd, or center of global oil demand 2015 ’16 2006 ’10 ’20 year to 973,000 barrels a day.
a surfeit of refining capacity. Petronas, for a $20 billion re- growth, led by China. From Sources: BMI Research (surplus); “There’s already a lot of
This year, production of fining and chemical complex 2008 to 2016, Chinese oil de- International Energy Agency (margins) THE WALL STREET JOURNAL. competition in the Asian re-
gasoline and diesel in the rein the Malaysian state of Jo- mand rose an average of 5.1% fined-fuels market,” said Peter
gion will exceed demand by hor. Saudi Arabia’s national oil a year, while U.S. oil demand hungry equipment and plants. eral years. Saudi Aramco has Lee, a BMI Research analyst.
about 750,000 barrels, or 5% company decided against the was virtually flat, said Sushant Wood Mackenzie expects held talks with state-owned Analysts say they expect
of annual Asian consumption, project after concluding it Gupta, a research director at China’s demand growth to China National Petroleum more delays or cancellations
according to a forecast by BMI wouldn’t generate sufficient energy consulting firm Wood slow to an average 1.7% a year Corp. to build a refinery in of projects in the works. China
Research. returns, people familiar with Mackenzie. through the next eight years. China’s Yunnan province. That Petrochemical Corp. and
The imbalance, which began the matter told The Wall But Chinese demand has Demand in India and South- would join a 260,000-barrel-a- CNPC—the country’s two big-
to balloon in 2008, is set to Street Journal. slowed as the country’s eco- east Asia is picking up, but day CNPC refinery slated for gest energy companies—have
persist until at least 2021, BMI “We really don’t need one nomic growth lags behind, and those markets are a fraction of Kunming province. delayed plans to build or ex-
says. more giant refining complex” as policy makers seek to move China’s. A consortium of firms is set pand 10 refineries, according
That overhang is a hurdle in the region, said Nelson China away from dependence Meanwhile, refiners are to open a 200,000-barrel-a- to CLSA. Mr. Wang, the bank’s
for refiners, whose biggest Wang, energy analyst at CLSA on infrastructure spending, planning a number of new day refinery in Vietnam later energy analyst, says those fa-
markets are in Asia. Roughly in Hong Kong. “Many of these which tends to employ diesel- Asian projects in the next sev- this year, and India’s Bharat cilities likely won’t be built.
THE WALL STREET JOURNAL. * * Monday, February 13, 2017 | B9
MARKETS
Inside J.P. Morgan’s Indonesia Hubbub

Dealings show the terests of the Southeast Asian a plan on how the bank would 4% and Bank Indonesia poured
nation. They were open to criti- Volatile Reaction handle negative press and con- an estimated $1 billion into ru-
fine line banks walk in cism, the officials said, but they In the wake of the U.S. election, Indonesia’s stocks and currency fell trol the release of future re- piah purchases and bond buy-
publishing research felt J.P. Morgan’s report wasn’t sharply and bond yields surged. ports, the person said, and flew backs. Behind the selloff were
accurate or credible. Indonesia’s in its Asia-Pacific chief to meet investor worries that emerging-
clients don’t like finance ministry declined to 2% with Indonesia’s vice president. market economies would suffer
comment for this article. 0 Ms. Mulyani didn’t publicly from Mr. Trump’s protectionist
On the Sunday after Donald Investment banks have long PERFORMANCE: penalize J.P. Morgan. The bank’s trade policies, a strengthening
–2
Trump won the U.S. presidential weathered complaints that their Rupiah against dollar analysts toned down the lan- U.S. dollar and outflows due to
–4
election, sparking turmoil in research departments, which Jakarta Composite Index guage in Indonesian bond re- rising U.S. interest rates.
emerging markets, J.P. Morgan make calls on stocks, bonds and –6 MSCI Emerging ports, changing “sell” calls to On the Monday after J.P.
Chase & Co. downgraded Indo- other assets, aren’t truly inde- –8 Markets Index recommendations to reduce Morgan’s equities downgrade, a
nesia’s stock market. The move pendent from their investment- 1 2 3 4 5 portfolio weighting, a person fa- media story on the report began
set off a chain reaction that re- banking operations, which pitch 8% miliar with the research said. circulating “like a virus” on
sulted in the New York bank los- deals to companies and govern- 6 BOND YIELDS* In 2015, during the market WhatsApp, one Indonesian
ments. 10-year government tumult that followed a Chinese banking executive said. The
4 bonds
By Ben Otto, But in Indonesia and other move to effectively devalue the stock market slid a further 2%.
2
Rachel Rosenthal parts of Asia, government offi- *Yields rise as prices fall. yuan, the bank again lowered its That Tuesday morning, Ms.
and I Made Sentana cials’ expectations for positive 0 investment recommendation on Mulyani’s officials called one of
research are unabashed and un- –2 rupiah government bonds. A the report’s co-authors to quiz
ing Indonesia as a client. apologetic. That means global Nov. 7 new finance minister, Bambang him about the downgrade, ac-
J.P. Morgan tried to smooth banks walk a fine line when 1 Nov. 8 3 Nov. 13 4 Nov. 15 5 Nov. 17 Brodjonegoro, called the move cording to people familiar with
relations with Indonesia, as it publishing research their invest- U.S. election J.P. Morgan Chase Indonesian Indonesia decides “unethical” and threatened the call.
had done several times in the ment-banking clients don’t like. 2 Nov. 11 issues downgrade finance officials to sever ties with sanctions, including, he joked, Ms. Mulyani declined to com-
past. At stake for the bank was In Asia, some bankers say on Indonesian speak with J.P. J.P. Morgan 100 push-ups. ment for this article.
Bank Indonesia
a lucrative and decadeslong they are routinely quizzed equities. Morgan analyst Haryanto Budiman, a 48- Before the week was out,
pours about $1
partnership. Bank executives about their research teams’ re- billion into market year-old veteran of McKinsey & with the stock market, rupiah
spoke with officials through ports when bidding for govern- Sources: Thomson Reuters; staff reports THE WALL STREET JOURNAL. Co. and Indonesia’s largest state and bonds all down steeply, Ms.
back channels, pushed for meet- ment business. In Indonesia, bank who had become J.P. Mor- Mulyani wrote to Mr. Budiman.
ings and pointed to subsequent central-bank employees roam ment bonds, as well as its with the finance ministry to re- gan’s local chief four years be- In the letter, she said Indonesia
reports with more-positive trading rooms, urging traders to ability to receive payments solve the matter. fore, led a blitzkrieg response, was cutting ties with the bank,
views on Indonesia’s economy, be patriotic by refraining from made under the country’s tax- J.P. Morgan’s first big run-in said people familiar with the according to people familiar
said several people familiar selling the rupiah when the cur- amnesty program. with Indonesia came after the matter. Mr. Budiman and col- with the letter.
with the efforts. rency is under pressure, traders The dealer role gave J.P. collapse of Lehman Brothers in leagues met and texted with Western diplomats met Indo-
Analysts turned over to the say. Morgan important visibility into 2008, when lawmakers there longtime friends and former nesian finance ministry repre-
finance ministry past market- A Bank Indonesia spokesman the much larger business of blamed a bank recommendation colleagues at Bank Indonesia, sentatives to explain the divi-
research reports, and higher- confirmed the bank sends offi- matching buyers and sellers of to sell rupiah-denominated gov- the finance ministry and the fi- sion between research and
level managers began to sign off cials to trading rooms during Indonesian government debt ernment bonds for accelerating nancial-sector regulator. Mr. investment banking and were
on Indonesia research, accord- times of heavy selling pressure and currency, which brings in a flow of money out of the Brodjonegoro was eventually told: “Yes, but they are the
ing to one of the people. In Jan- on the rupiah. He said he an estimated tens of millions of country. Officials under Finance appeased and recalls telling Mr. same. They are J.P. Morgan,” ac-
uary, the bank’s analysts partly doesn’t know what they say to dollars in revenue for J.P. Mor- Minister Sri Mulyani Indrawati, Budiman to be careful about recording to a person briefed on
reversed their Indonesia equi- dealers. gan each year, analysts say. The a well-regarded, U.S.-trained search. the conversation.
ties call, bumping their recom- Rarely is the push to be posi- bank can still trade government economist who was almost By the time Mr. Trump’s On Jan. 12, Ms. Mulyani
mendation up to “neutral” from tive as pronounced—and pub- bonds and the rupiah as well as three years into her first stint in election roiled emerging mar- hosted a meeting with analysts
“underweight.” lic—as it was with Indonesia’s continue to underwrite stock the job, were primarily worried kets, Ms. Mulyani was back as and economists. At the meeting,
But Indonesian officials were reaction to J.P. Morgan’s No- and debt for private companies. about controlling market reac- finance minister, charged with she cautioned them to be care-
unmoved. They insisted that vember report. Nor are the con- J.P. Morgan says that its In- tion to the report, according to building credibility for Indone- ful with their research reports,
banks like J.P. Morgan, which sequences typically as severe. donesia business is operating as a person familiar with the mat- sia’s financial system. On the according to several attendees.
were primary dealers for gov- J.P. Morgan lost its Indone- usual, that impact on clients ter. Friday after the election, the ru- Since the meeting was only
ernment-bond sales, have a re- sian primary-dealer and under- from the government ban is Shortly thereafter, J.P. Mor- piah dropped as much as 2.7%, for primary dealers, J.P. Morgan
sponsibility to support the in- writing business for govern- minimal and that it is working gan presented the ministry with the Indonesian stock market fell wasn’t invited.
EQUITIES
AHEAD OF THE TAPE | Steven Russolillo
497
The number of trading days since Apple’s
Investors Are Rethinking the Trump Trade
One of the
big Trump-
related trades
the strong postelection
move.
Expectations for future
share price has hit a new high, the longest is showing Fed rate increases are
stretch without a record since 2005 some cracks. slipping. When the central
Inflation bank raised interest rates in
expectations, December for only the second
which surged immediately time in a decade, it indicated
Apple Gets Shine Back following the presidential
election, have stalled in
that three more rate
increases would come in 2017.
GARY CAMERON/REUTERS
From January 2005 through iPhone. recent weeks. That suggests At the time, the federal-
February 2015, shares of Apple Apple shares began climbing investors are questioning the funds futures market showed
Inc. closed at a record 264 again last May, when Warren economic growth the new a nearly 50% chance of that
times. Since then, not once. But Buffett’s Berkshire Hathaway administration hopes to happening. That probability
that run could end this week. Inc. revealed that it had taken a deliver. The strong dollar has has fallen in recent weeks,
Shares of the nearly $700 stake worth nearly $1 billion. also prompted import prices dropping to 30% last week,
billion company closed Friday at Shares rose 3.7% that day and to cool. And investors have Federal Reserve Chairwoman Janet Yellen will speak to Congress. the lowest since before the
have largely been on an upward recently dialed back Fed’s December meeting.
MONEYBEAT trend since. expectations that the Federal the Fed’s dual mandate, has Even so, at least one Fed
The stock has gained about Reserve will raise interest shown signs of life. Growth Take a Hike official said he could support
$132.12, the third consecutive 40% over the past 12 months rates at least three times this in the consumer-price index Probability of at least three a rate increase at next
day they have finished within and more than 9% since Apple’s year. poked above 2% in interest-rate increases in 2017 month’s meeting. “I think
$1 of their $133 record. The earnings on Jan. 31. A slew of economic data December, the first time it March is on the table,”
technology giant has gone 497 Apple also got a boost after this week as well as Fed topped this mark in 2½ 50% Federal Reserve Bank of
trading sessions without set- November’s presidential elec- Chairwoman Janet Yellen’s years. 40 Philadelphia President
ting a new high. That is the tion. Investors began to bet semiannual testimony before Ms. Yellen has acknowled- Patrick Harker said last
longest stretch without a re- that a Donald Trump adminis- Congress will likely reinforce ged that inflation is “moving 30 week.
cord for Apple since a 1,217-day tration and a Republican-con- these modest expectations. toward our goal.” Updated But such timing could
20
run from March 2000 to Janu- trolled Congress would allow The Humphrey-Hawkins producer and consumer-price prove too soon. “If the Fed
ary 2005. companies with large overseas hearings, beginning Tuesday, data for January are 10 wants to raise rates…then
A new record would be the cash holdings, as Apple does, to will mark Ms. Yellen’s first expected Tuesday and they need to start working
capstone of a recovery in the repatriate their cash at lower- appearance before Wednesday, with economists 0 on pushing up market
shares after a prolonged down- than-usual corporate tax rates. lawmakers since Donald expecting inflation to tick up 2016 ’17 expectations soon,” said
turn from July 2015 to May —Ben Eisen Trump was sworn in as slightly. Note: Based on federal funds futures Torsten Slok, chief internat-
2016. president. Mr. Trump But investors aren’t Source: Deutsche Bank Research ional economist at Deutsche
The stock fell 30% over that ONLINE criticized her sharply during banking on another strong Bank Securities. “Markets are
period, as investor concern his campaign, and GOP leg up in inflation. Take the annualized inflation on feeling less certain that the
mounted over the pace of For more lawmakers have considered 10-year breakeven inflation average over the next assumptions underlying the
iPhone sales, soft demand from
China and speculation that the
company would never develop a
WSJ
.COM
MoneyBeat blog
posts, go to
blogs.wsj.com/
taking steps to subject the
Fed to greater congressional
scrutiny, topics which Ms.
rate. Measuring the yield
spread between Treasury
notes and Treasury inflation-
decade. It jumped from 1.71%
right before the election to
above 2% last month for the
ongoing Trump trades will
be realized.”
If past practice holds true,
product as successful as the MoneyBeat Yellen will undoubtedly face. protected securities, it first time since September Ms. Yellen won’t change her
Ms. Yellen’s testimony currently reflects investors’ 2014. Its decline since has tone this week. Investors
comes as inflation, half of expectations of 1.96% been modest, but it did halt need to watch the numbers.
THE TICKER | Market events coming this week
Monday Quintiles IMS 1.05/0.90 Jan., expected up 0.3% Kraft Heinz 0.87/0.62 Earnings expected*
T-Mobile US 0.28/0.34 Core, Dec. up 0.2% Marriott Intl. 0.84/0.77 Estimate/Year Ago($)
Earnings expected*
Jan., expected up 0.2% PepsiCo 1.16/1.06 Alexion Pharma.
Estimate/Year Ago($)
1.25/1.13
Arch Capital 0.97/1.15 Wednesday
Brixmor Prop. 0.20/0.18
Empire Manufacturing Thursday Charter Comm.
Mort. bankers indexes Jan., previous 6.5 1.05/(1.21)
Federal Realty 0.77/0.73 Purch., previous up 2% Initial jobless claims
Feb., expected 7.0 Duke Energy 0.82/0.87
HCP 0.24/(1.29) Refinan., prev. up 2% Previous 234,000
Liberty Global 0.19/(0.25)
Noble Energy (0.10)/0.44 Expected 243,000
Industrial production PG&E 1.34/0.50
Vornado Realty 0.50/1.22 EIA status report
Dec., previous up 0.8% Waste Mgmt. 0.77/0.71
Previous change in stocks in EIA report: natural gas
Jan., expected 0.0%
Tuesday millions of barrels Previous change in stocks in
Friday
Crude oil up 13.8 billions of cubic feet
Producer price index Retail sales down 152
Gasoline down 0.9 Leading indicators
All items, Dec. up 0.3% Dec., previous up 0.6% Dec., previous up 0.5%
Distillates 0.0
Jan., expected up 0.3% Jan., expected up 0.1% Building permits Jan., expected up 0.5%
Core, Dec. up 0.2% Dec., previous 1.21 mil.
Business inventories
Jan., expected up 0.2% Retail sales, ex. autos Jan., expected 1.24 mil. Earnings expected*
Nov., previous up 0.7%
CHRIS RATCLIFFE/BLOOMBERG NEWS
Dec., previous up 0.2% Estimate/Year Ago($)

Earnings expected* Dec., expected up 0.3%
Jan., expected up 0.5% Housing starts Applied Materials
Estimate/Year Ago($)
Capacity utilization Dec., previous 1.23 mil. 0.66/0.26
AIG (0.61)/(1.10) Dec., previous 75.5% Earnings expected* Jan., expected 1.21 mil. Campbell Soup 0.88/0.87
Devon Energy 0.21/0.77 Jan., expected 75.5% Estimate/Year Ago($) Deere & Co. 0.54/0.80
Express Scripts CBS 1.10/0.92 Philadelphia Fed survey J.M. Smucker 2.00/1.62
1.87/1.56 Consumer price index Cisco Systems 0.56/0.57 Jan., previous 23.6 Moody’s 1.14/1.09
Incyte 0.13/0.29 All items, Dec. up 0.3% Equinix 0.75/0.18 Feb., expected 17.0 V.F. Corp. 0.98/0.95
* FACTSET ESTIMATES EARNINGS-PER-SHARE ESTIMATES DON’T INCLUDE EXTRAORDINARY ITEMS (LOSSES IN PARENTHESES) ADJUSTED FOR STOCK SPLITNOTE: FORECASTS ARE FROM
PepsiCo, maker of snacks and soft drinks, reports results on Wednesday. DOW JONES WEEKLY SURVEY OF ECONOMISTS
B10 | Monday, February 13, 2017 * *** THE WALL STREET JOURNAL.
MARKETS
Energy Goes From First to Worst Oil Prices
Gain as
Sector’s stocks trail
A Slow Start 25%
after performing as
the S&P 500’s best The S&P 500 energy sector has lagged behind
Energy sector (2016)
s 23.7% 20
OPEC
this year, even as investors are betting
segment in 2016 that oil prices will continue to rise.
15
Complies
BY AKANE OTANI Percentage change BY TIMOTHY PUKO
AND STEPHANIE YANG since previous year AND BENOIT FAUCON
10
U.S.
U.S. energy shares have S&P 500 (2017) election Oil prices rose Friday af-
cooled in 2017 following a First 28 days ter a top energy watchdog
s 3.5% YTD 5
market-beating performance said exporters are following
last year, wrong-footing many S&P 500 (2016) through on promises to cut
investors who bet the sector s 9.5% oil production to end a long-
would benefit from oil-price 0 standing glut in the market.
stability. The International Energy
Energy was the best-per- Agency reported Friday that
–5
forming sector in the S&P 500 production from the Organi-
last year, rising 24% as oil Energy sector (2017) zation of the Petroleum Ex-
prices rebounded from multi- t 3.6% YTD –10 porting Countries fell to
year lows reached last Feb. 11. 32.06 million barrels a day
A year later, crude prices in January, a decline of
are holding their gains, with –15 about 1 million barrels com-
New York crude rising Friday pared with
to close at $53.86 a barrel. But 1 T R A D I N G D AY S 252 COMMODITIES OPEC’s Oc-
the S&P energy sector is down tober base-
3.6% in 2017, trailing the 3.5% Net long positions on oil rose to a record high in January. U.S. crude-oil prices have steadied this year. line. The
gain in the S&P 500 index and cut “is certainly one of the
putting energy shares near the 400,000 contracts $60 a barrel deepest in the history of
bottom of the sector list. Oil hits OPEC,” the agency said, with
The reversal in energy 300,000 50 its low at the countries that agreed to
shares, according to analysts $26.21 it reaching a record compli-
and investors, reflects overly 200,000 40 a barrel ance of 90%.
Oil jumps 9.3% to
optimistic expectations for Light, sweet crude for
100,000 30 $49.44 a barrel after
crude prices, the realization March delivery gained 86
OPEC reaches a deal
that it may take a few quarters to cut production cents, or 1.6%, to $53.86 a
before higher energy prices 0 20 barrel on the New York Mer-
translate into improved earn- 2016 2017 2016 2017 cantile Exchange.
ings and signs that the stocks THE WALL STREET JOURNAL.
Most of the price gains
Sources: Thomson Reuters (indexes); FactSet (crude oil); Commodity Futures Trading Commission (net long positions)
are already overvalued. came overnight after the IEA
“People just seem a little fa- released its report during
tigued at this point,” said Bill Despite the sliding energy trades at 32 times the profits again in the fourth quarter, ing 16% in 2016. The company European trading, and then
Costello, a portfolio manager stocks, investors expect oil analysts expect them to earn with analysts estimating a de- posted its lowest yearly earn- prices stayed mostly flat
and energy analyst at West- prices to rise. Net bullish bets over the next 12 months, while cline of around 5% from the ings in 20 years in January, during traditional U.S. trad-
wood Holdings Group. “After by speculative investors on oil the broader S&P 500 trades at year-earlier period. citing the downturn in coming hours.
we built all that momentum reached a record in January, 18 times earnings estimates, Last month, energy stocks modity prices and a $2 billion The gains pushed oil to
last year, we’ve just fallen flat.” according to Commodity Fu- according to FactSet. closed out the strongest 12- impairment charge. its ninth winning week in
The slide is the latest exam- tures Trading Commission Earnings are expected to re- month outperformance com- Chevron Corp. shares, which the last 13, up 3 cents, or
ple of a sudden reversal in a data going back to 2006, cover, but the rebound hasn’t pared with the recovery in oil gained 31% last year, are down 0.1%.
popular trade. The utilities though those net bets pulled yet begun. Analysts expect en- prices since at least the 1980s, 4% in 2017. While the company Brent, the global bench-
sector of the S&P 500 in- back slightly in the week ergy companies to return to according to Goldman Sachs. posted its second consecutive mark, settled up $1.07, or
creased 21% in the first half of ended Tuesday. The U.S. oil earnings growth in the first The relative strength of shares quarterly profit in January, its 1.9%, at $56.70 a barrel. It
last year as investors sought price has been flat this year af- quarter of 2017. across oil companies puts eq- financial results came in still ended the week down 11
safety, before the gains were ter doubling from its lows in The energy sector has been uities “now at risk of disap- sharply below estimates. A cents, or 0.2%, snapping a
nearly halved by the end of the 2016. the biggest drag on the pointment,” the bank said in a Chevron spokesman said the three-week winning streak.
year as the rest of the market Meanwhile, energy stocks broader S&P 500’s earnings February note. company expects earnings to OPEC’s early compliance
improved. U.S. gold prices remain pricey, noted Scott growth for eight consecutive Shares of Exxon Mobil improve this year as it tight- rate came in beyond what
climbed to a two-year high in Wren, senior global equity quarters, according to FactSet. Corp., the world’s largest pub- ens spending and potentially even some of the most bull-
2016 but erased most of those strategist at Wells Fargo In- The sector is expected to re- licly traded oil company, have pulls in more revenue from ish analysts and traders had
gains by year-end. vestment Institute. The sector port earnings contraction fallen 8.6% this year after gain- production growth. expected.
Email: [email protected]
HEARD ON THE STREET FINANCIAL ANALYSIS & COMMENTARY WSJ.com/Heard
Trade Talk Is
No Spur Yet
Activision’s Game Still Isn’t Over OVERHEARD
Activision Blizzard Inc. told analysts Thursday will They say don’t take plea-
Game Theory
To Inflation has shown there is life be-
yond “Call of Duty”—not
that it is in a big rush to get
Activision Blizzard's annual segment revenue
take the game “back to its
roots.”
How that will play out re-
sure in the misfortunes of
others, but Wall Street ana-
lysts have been having their
Investors think President there. $3.5 billion Activision mains to be seen. But the fun after Twitter’s dismal
Donald Trump’s tough talk The videogame publisher 3.0 Blizzard strength of “Call of Duty” fourth-quarter results.
on trade will fan inflation. reported earnings for what now lies beyond the unit “Bye Bye Birdie?” asked
But if anything it has so far should have been a difficult 2.5 sales of one particular year. SIG Susquehanna Financial
exerted a cooling effect on year. The latest iteration of Digital expansion packs and Group analysts in the title of
prices. its key franchise—“Call of 2.0 in-game transactions are key a research note that argued
The Labor Department on Duty: Infinite Warfare”—sold areas driving growth at vid- that there was no relief in
1.5
Friday said that import poorly relative to expecta- eogame publishers these sight for the ailing social me-
prices rose 0.4% in January tions. Michael Pachter of 1.0 days. The older “Call of dia company.
from December, putting Wedbush estimates revenue Duty: Black Ops 3” generated “Flying South (but Just for
them 3.7% higher than a year from the game fell 30% com- 0.5 strong returns on both for the Winter?)” quipped Citi-
earlier. That gain was due to pared with its predecessor Activision in 2016. And the group, which downgraded
the increase in fuel prices— from the year before. The 0 franchise is a key part of the Twitter to “sell.”
oil averaged about $53 a bar- company was up against a 2010 ’11 ’12 ’13 ’14 ’15 ’16 company’s drive into e- UBS, which also down-
rel last month versus $32 a strong pair of shooters from Source: the company THE WALL STREET JOURNAL. sports, essentially competi- graded the stock, titled its re-
year earlier. Nonfuel imports Electronic Arts, and the new tive gaming leagues, a mar- port, “Can’t Fly With Broken
experienced their third con- space theme of “Infinite year. That came mostly from Diversity bodes well for ket expected to grow to $1.2 Wings.”
secutive monthly decline and Warfare” fell flat with gam- a very strong year at its Bliz- Activision, which long has billion by the end of next Other analysts focused on
were flat on the year. ers and critics alike, drawing zard unit, home to “World of depended on “Call of Duty” year, according to SuperData. Twitter’s inability to capitalize
Some of the deterioration some of the lowest review Warcraft” and its latest hit, for a big chunk of its annual Even with the decline in on President Donald Trump’s
in import prices is due to the scores in the franchise’s his- “Overwatch.” In fact, reve- sales. Because “Infinite War- sales, “Call of Duty: Infinite frequent use of its platform.
strength of the dollar, which tory. nue at Blizzard for the year fare” was the 13th sequel in Warfare” still ranked as the “Trapped…Not Trumped,” de-
despite some weakening Still, Activision managed exceeded that of the Activi- as many years, it is likely top-selling game in the U.S. clared RBC Capital Markets.
over the past month remains to raise consolidated net rev- sion side for the first time that some fatigue has set in. for the year, according to Some of the analysts
above where it was on Elec- enue by nearly 8% for the since the two companies But Activision won’t be rais- NPD. So while Activision made the right call on Twit-
tion Day. Economic weak- year even when excluding merged in 2008. The surprising the white flag on the now has other strong games ter’s stock.
ness, some of it stemming the new contribution of mo- ingly strong results drove up franchise anytime soon. The to load in its clip, “Call of Not so much on their
from worries about Mr. bile-game maker King Digi- Activision’s shares by 19% company has another sequel Duty” still counts as a pretty choice of words.
Trump’s policies, may also tal, which was acquired last Friday. in store this year, which it big bullet. —Dan Gallagher
have played a role.
Yet if Mr. Trump imposes
tariffs or trade restrictions
on certain countries, import
prices will almost certainly
Investors Will Need Patience as Markets Seek Direction
go up. But if those things The experience of 2017 so rates hardly budging. market has been buoyed by waiting for signals from the
start to look more likely, the far in markets suggests Waiting Game The end of this week has evidence of stronger global U.S. on fiscal policy, it has
dollar will probably resume investors will need a quality S&P 500 performance brought new fuel for the growth at the end of 2016 been a dispute about
its push higher. And import that can be in short supply market. Investors have been and the start of 2017, but immigration policy that has
prices would keep falling. in today’s fast-moving world: 2350 waiting for some word from this is likely to have been dominated the headlines.
Worries alone about coming patience. 2325 the new U.S. administration generated by forces and Meanwhile, markets will
trade restrictions would Many popular trades 2300 on a key element of the events that were in play at be vulnerable to any signs
probably dent overseas econ- inspired by the hope of 2275 growth trade: President the start of last year, in that momentum in the
omies. So import prices stronger growth have faced a Donald Trump’s plans for tax particular stimulus from economy is fading. New
could face economic as well test in the opening weeks of 2250 and spending. China. policy measures will take
as currency pressure. the year. 2225 On Thursday, Mr. Trump That makes the handover time to come into effect.
Investors also need to The dollar has weakened, 2200 said there would be a “phe- from monetary policy to Meanwhile, European
weigh the risk of Mr. Trump with the WSJ Dollar Index January February nomenal” tax announcement fiscal policy—one of the politics are heating up, with
and congressional Republi- falling 2.3%. Long-dated Source: WSJ Market Data Group within the next three weeks. factors that has shifted the end of the first quarter
cans moving toward policies government bonds, which That helped the S&P 500 markets away from last and start of the second likely
that would raise import plummeted last year, have gains followed by extended inch up to a record and year’s panic about deflation to see investors’ attention
costs, and then stand down recovered some poise, with periods of sideways motion. pushed both bond yields and toward a focus on rising grabbed by the Dutch and
in the face of resistance from Bank of America Merrill In the past three months, the the dollar up, although they growth and inflation—a French elections.
businesses. That could set Lynch’s index of U.S. S&P 500 has only moved by are still below their recent potentially fragile period. This mix risks more stop-
off turbulence that would Treasurys maturing in 15 more than 1% on one peaks. Politics don’t operate to the and-go action in markets.
make forecasting inflation years or more up 1.3%. occasion—back in December. Still, the market pattern same timetables as monetary The path for stock prices,
even more of a mug’s game Stocks have made Credit markets have been shows the risk of a gap policy and have a multitude bond yields and the dollar
than it already is. headway, but it has been a becalmed, with corporate- emerging between of competing priorities. looks like a bumpy one.
—Justin Lahart jerky process, with swift bond spreads over risk-free expectations and reality. The While investors have been —Richard Barley
JOURNAL REPORT
F
© 2017 Dow Jones & Company. All Rights Reserved. THE WALL STREET JOURNAL. The Eollow Monday, February 13, 2017 | R1
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PHOTO ILLUSTRATION BY LINDSAY HOLMES
at just how much they are enjoying retire- income-driven,” she notes. “The feeling of ac- ahead of you. (The hurried person used to be
BY GLENN RUFFENACH
L
ment—even if retirement isn’t always what complishment—and the realization that I can me.) Time to play with a child at their pace,
they expected. actually play a guitar—is pretty heady stuff.” and to meander when shopping, instead of
IKE SURPRISES? Retirement—for Of course, change is difficult, and happy power-walking to find the item and get ’er
better and worse—will change The Joys of Taking a Risk endings aren’t guaranteed. But reader after done. Time for slow cooking and to drive a
your life more than you anticipate. Walking away from work, as with any major reader made the same point: Retirement is tai- friend to the airport. Time to ‘waste’ a morn-
That’s the consensus of those transition, can be overwhelming. After all, al- lor-made for a leap in the dark. ing at your first art class, even though you’ll
who should know best: retirees most everything is changing: finances, daily “I thought of hobbies and other interests never sell anything.”
themselves. Recently, as part of a A companion theme was the idea of “con-
discussion in these pages about trol”: retirees discovering that they are in
changes in later life, we asked
readers for help: Tell us what has surprised We asked readers to tell us about the charge of their daily routines—not their boss,
their clients nor their children.
you in retirement. What did the experts ne-
glect to mention? What would you tell would- things they didn’t anticipate when they “The biggest surprise was realizing how
much of our time when working was deter-
be retirees to watch for?
The answer, in short: almost everything. stopped working. They had plenty to say. mined/dictated by someone or something
else,” one couple told us. “In retirement,
The surprises ran the gamut, from the won- though, almost everything we do is because we
derful to the devastating. Many readers told us decided to do it. It’s exhilarating.”
they were surprised that their savings are routines, social networks. As such, some retir- that I was ‘expected’ to do, but in the end did Brian McDonald, a retired pilot in Dillsburg,
holding up just fine, although several said that ees are inclined to stick with the familiar, the something totally different,” notes Bart Corm- Pa., told us his days are filled with an eclectic
household expenses—and Medicare premiums, activities and interests they know best. ier, a retired engineer in Fernandina Beach, mix of projects and chores: working in a small
in particular—have been steeper than they an- But the biggest, and best, surprise in retire- Fla. That “something” is volunteering full time orchard on his property, shopping (“walking
ticipated. ment, according to many readers, is what hap- with children’s programs, college students (as the aisles of deserted stores midmorning dur-
Relationships? Conventional wisdom holds pens when you take risks. More to the point: a mentor), senior home repair and his church. ing the workweek is pure joy”), taking in the
that making friends in later life is difficult, but Trying or learning something new, and risking Even “doing good” involves risks, Mr. Corm- occasional movie matinee and, for good mea-
numerous retirees told us the conventional your time and energy (and perhaps your pride) ier notes. Tasks will come your way that, to sure, building a small airplane. The point: He
wisdom is simply wrong. They also told us, in the process, just might change your life. your thinking, are a waste of your talents—or manages the schedule, rather than vice versa.
however, that they miss being part of a team Patricia Plumeri, age 69 and a retired ac- an affront to your dignity. Mr. Cormier, on “I challenge myself daily with work of my
at work, much more than they imagined. countant, has found a “second career” and more than one occasion, found himself “ad- own choosing,” he notes. “I get satisfaction
Fitness and health? Far from turning into “lifetime occupation” as, improbably, a guitar dressing waste-plumbing systems in homes from a well-built fence or a blemish-free re-
couch potatoes, many readers told us they are player in a four-person ensemble near her that were a phone call away from being con- stored piece of furniture.”
in the best shape of their lives. “I feel better home in South Pasadena, Calif. The seed, she demned.” There’s also a “risk of getting too And the airplane? “The kit came with
than I have in years,” says William Wilson, a explains, was planted during her teenage years committed and not being able to say ‘no,’ ” he 10,000 rivets in a large cardboard box, so I use
doctor who lives in Atlanta and Portland, Ore., in southern England, where she grew up, adds. “The more you do, the more is wanted.” the level of remaining rivets as a thermometer
cycles daily and has lost 40 pounds since retir- watching fledgling bands—the Beatles, the Such hazards, though, tend to pale beside of progress,” Mr. McDonald explains. “At last
ing in mid-2015. “I sleep well at night now, too. Kinks, the Rolling Stones—perform in local the payoffs, he notes. “There’s a deep satisfac- count, I have 9,000 to go.”
What a treat.” music halls. A guitar, she recalls, “seemed to tion from knowing that you have changed
Most wrenching of all: stories of retire- be an instrument that could really express someone else’s life for the better.” Careful Planning Pays Off
ments cut unexpectedly short. “The biggest feelings of joy and sadness.” Financial surprises, not surprisingly, popped
surprise has been mortality,” notes Richard Six months after retiring in 2010—when “I Ah, Free Time at Last up in many of the responses we received. Fre-
Sandaas, a retired engineer and project man- could make a major time commitment [to] do- “My surprise in retirement was discovering quently, a sigh of relief was audible: Nest eggs
ager, in Kirkland, Wash. “My wife took early ing something purely for my pleasure”—she the unexpected luxury of time.” are working as planned. A number of readers
retirement in 2003—and less than 10 years signed up for her first guitar lesson. Progress, That observation, from Vicki Robb, a retired noted that a healthy amount of self-discipline
later passed away. We thought we had many she notes, was painful; hours of practice each real-estate agent in La Jolla, Calif., was echoed before retiring has a bigger impact afterward
years of post-retirement ahead of us.” week left her fingers numb. “I would go to my in dozens of the responses we received. Even than most people realize.
What follows is a closer look at a number of gym and swim in the pool, gently massaging though retirement today, as opposed to 20 or “I’ve lived in the same house since 1972,
these surprises. (You can read a sampling of my left hand to get feeling back into it.” 30 years ago, is seen as more “active”—more keep cars for 10 years, exercise regularly for
the emails we received at wsj.com/wealthre- Today, her group (which includes her hus- “purpose-filled”—many readers told us that good health and, basically, live within my
port and look for “Readers’ Biggest Retirement band, also retired, on bass) plays two hours “active” isn’t mandatory. That it’s fine simply means,” says Rick Abell, a retired engineer who
Surprises.”) On balance, at least from those weekly. Performing in public, at least for the to…chill. divides his time between Colorado and Ohio. If
who wrote to us, there has been more joy than moment, isn’t part of the plan. But other re- Ms. Robb, for one, says there is now “time “you want to have a comfortable retirement,
pain, more satisfaction than frustration. In- wards suffice. to take an extra moment to exchange pleasant- sacrifices are necessary while working.”
deed, most readers told us they are surprised “I wanted something in my life that wasn’t ries, and time to let someone in a hurry go Please turn to the next page
INSIDE
The Key to Saving More The ‘Nanny Tax’ The Benefits of New Thinking About an Q&A on New Fafsa Movies to Watch About
Research suggests policy Everything employers need Double Majors? Old Tool Timetable Retirement
makers should consider to know about the tax One study says that Younger retirees could College applicants can These films give viewers
making retirement accounts governing household the advantage is less than benefit from using reverse- apply earlier for financial aid an inspiring message
more restrictive. employees. many people believe. mortgage lines of credit. than in the past. for later life.
R2 R4 R4 R5 R9 R10
R2 | Monday, February 13, 2017 THE WALL STREET JOURNAL.
JOURNAL REPORT | WEALTH MANAGEMENT
The Key to Saving More: Make Accounts Hard to Tap

Research suggests that policy makers should limited self-control—it’s hard
to save in a world that’s al- Appeal of Penalties
decision, with 60% saying it
was a “major” source of re-
make retirement accounts more restrictive ways trying to get you to
buy—and so they chose finan-
How boosting early-withdrawal
penalties affected deposits to
gret. Given this data, it
shouldn’t be too surprising
cial products that made it easy 401(k)-style accounts, according that many people want highly
to make the prudent choice. In to one study restricted savings accounts.
BY SHLOMO BENARTZI
short, they wanted to protect This returns us to the origi-
AND JOHN BESHEARS Percentage of money allocated
their future selves from their nal question: How did you al-
to a restricted account when it…
present selves. locate your $5,000?
IMAGINE THIS SCENARIO: Behavioral economists refer Has a 10% early withdrawal penalty If you allocated a signifi-
Somebody offers you $5,000 to such restricted accounts as 38.9% cant amount of money to the
to save for a future financial “commitment devices.” Al- Has a 20% early withdrawal penalty illiquid accounts, then you
goal, such as a vacation or though commitment devices may want to consider making
44.8%
home purchase. You can allo- might violate the predictions commitment devices part of
cate the money across three of classical economics, they al- Doesn't allow early withdrawals your financial life. Whatever
accounts, all with the same in- ready are a staple of our fi- 56.0% your goal—maybe it’s saving
terest rate. The first account nancial lives. for a kitchen remodel, or fi-
Source: Self Control and Commitment: Can
comes with no restrictions, Take retirement savings: Decreasing the Liquidity of a Savings Account nally paying off those credit
meaning you can withdraw the Americans currently have Increase Deposits?, September 2015 cards—you can generate your
money whenever you want. nearly 15 trillion in assets in THE WALL STREET JOURNAL. own commitment device by
The second account comes accounts such as 401(k) plans imposing a penalty on yourself
RICHARD BORGE
with a 10% penalty if you with- and IRAs, according to data Commitment devices if you don’t follow the plan,
draw the money within the from the Investment Company The pull of immediate grati- and finding another person
first year. The third account Institute, a trade group. Those fication is reflected in the data who can enforce the penalty if
prohibits withdrawals within types of accounts come with a from existing 401(k) accounts. you break your promise to
the first year. 10% tax penalty if funds are Consider 401(k) cash outs, yourself. (There also are web-
How would you allocate the study, the researchers offered goals and what they actually withdrawn before a person which occur when people liq- sites that can help you do
$5,000? Economic theory pre- people only two accounts to are saving. turns 59½ years old. (Of uidate their retirement ac- this.)
dicts that most people, not choose from: the account with course, these retirement sav- counts before they reach re- However you create it, a
wanting to limit access to no withdrawal restrictions and Protection from yourself ings accounts offer tax bene- tirement age. Research from commitment device makes it
their own money, would put a single restricted account. To understand why, you fits, so the source of their pop- Aon Hewitt, a human-re- possible to leverage your dis-
the entire amount in the unre- They now allocated nearly half need to understand what ac- ularity is multidimensional.) sources consulting firm, shows like of losses to increase your
stricted account. of their money to the re- counts for the appeal of re- This latest research suggests that among people changing chances of future success.
However, a new working stricted account. What’s more, stricted accounts. One piece of that it might be possible for jobs, about one-third keep Sometimes, the best way to
paper (by John Beshears, the amount of money they al- evidence comes from a similar, lawmakers to make retirement their 401(k) account at the boost self-control is to ac-
James Choi, Christopher Har- located increased with the older field study of Filipino accounts even more restric- original employer, one-third knowledge how little we have.
ris, David Laibson, Brigitte level of restrictiveness. They households: After one year, the tive—and increase retirement roll over the account into an
Madrian and Jung Sakong), even allocated money to the Filipino families that chose to savings—without reducing the IRA and another third liqui- Dr. Benartzi, a frequent
suggests the opposite—that restricted account when it of- use a restricted account in- appeal of such accounts to con- date it. contributor to the Journal
people actually prefer putting fered a lower interest rate creased their savings by 337% sumers. In the Beshears study, While people liquidate their Report, is a professor and
some of their money into ac- than the unrestricted one. compared with a control group. for instance, accounts with a accounts for a variety of rea- co-head of the behavioral de-
counts with severe restric- In other words, restricted They saved more because they 10% penalty were less desirable sons—some need the money, cision-making group at UCLA
tions. When these researchers accounts are so appealing that weren’t able to spend; the re- than accounts with a 20% pen- others just find liquidation Anderson School of Manage-
asked a sample of Americans people appear to be willing to strictions were a necessary alty, which were less desirable easier than rolling it over—the ment. Dr. Beshears is an as-
the same question posed give up money just to get one. protection against the usual than accounts that prohibited vast majority of workers come sistant professor of business
above, approximately 80% put And that willingness holds im- failures of self-control. early withdrawals altogether. to regret that decision. One administration at Harvard
at least some of their money portant clues to ways individ- The same logic applies to These people seemed to realize recent survey by Warren Business School. David Laib-
in one of the two accounts uals, lawmakers and institu- the American subjects in the that a 10% early-withdrawal Cormier of the Boston Re- son, chairman of the depart-
that made it much more costly tions may be able to close the Beshears study. Many of the penalty wouldn’t be sufficient search Group found that ap- ment of economics at Har-
(if not impossible) to with- gap between what experts say people who chose to allocate protection for their savings: proximately 80% of people vard University, contributed
draw the funds early. people should be saving for re- money to the restricted ac- they needed stronger restric- who liquidated their last re- to this article. Email them at
In another version of the tirement and other financial counts were aware of their tions to keep their savings safe. tirement account regretted the [email protected].
The Biggest Surprises in Retirement

Continued from the prior page events that you always had an ing executive in Carefree, three years.
Interestingly, several readers pointed to the excuse to avoid. Examples: Boomer Attitudes Ariz. “Having burned both Today, “I have a better social life than I can
same factor as playing a critical role in their weddings, funerals, baptisms, Health and money top concerns ends of the candle for 40 recall ever having during my working years,”
financial success: eliminating debt before leav- anniversary and birthday par- of baby boomers as they years, it was a shock to the Ms. Lockhart says.
ing the workforce. (The Federal Reserve’s most ties.” approach retirement system to suddenly find my- Readers said retirement offers countless op-
recent survey of consumer finances found that, • Vehicle maintenance. self and my calendar no lon- portunities to meet people if you’re willing to
among older adult households with debt, me- “The vehicles always seem to WHAT KEEPS ger in demand.” be proactive: exercise classes, coffee-shop get-
dian total debt increased to $40,900 in 2013 need something that you al- YOU UP AT NIGHT To deal with this, Mr. togethers, shared hobbies and interests (“get-
from $18,385 in 2001.) ways ignored because you 48% Blakely eventually took a ting my two dogs [in retirement] has been the
“I was surprised how important it was to never had time to deal with Financial concerns part-time po- best thing I have ever done;
have no substantial debt,” notes Jonathan it.” sition with a
42%
Stolz, a retired physician in Williamsburg, Va. consulting
“Having retired in 2004 without any money The Pain of Mortality Physical health challenges
firm, a posi- “Discovering the un
expected
owed to the bank made riding out the stock For all the “good” sur- 21% tion that of- luxury of time”
market downturn and recession four years prises in retirement, several Relationship issues fered a mix Vicki Robb, who
later easier to withstand. And I was able to readers said would-be retir- of purpose now has
time for slow co
sleep at night.” ees should beware of unex- 15% and freedom. oking and
art classes
pected jolts. The most devas- Work worries Bill Fenton, a
Hit by High Costs tating: the loss of a spouse. BIGGEST FINANCIAL retired doc-
All that said, a number of readers com- Bill Sears, a retired con- CONCERN tor in Fol-
plained about two disagreeable financial sur- tractor in Greenwood Village, som, Calif.,
prises: steep Medicare premiums and house- Colo., lost his wife last year 36% says he took
hold expenses that were larger than to Alzheimer’s. He had spent Paying for basic needs a “slight
anticipated. five years as her caregiver. 23% self-esteem
With regard to Medicare, several readers “Don’t wait until you retire Saving enough for retirement hit” when
said they simply didn’t realize how sizable to start enjoying life,” he cau- he walked
and/or sudden changes in their income (exam- tions. “Appreciate that every 19% away from
ple: taking a buyout) can make them vulnera- day you’re as healthy as Having enough money for medicine.
ble to Medicare “surcharges,” the larger-than- you’re ever likely to be.” emergencies His response, he says, has
normal premiums that some individuals pay That sentiment was echoed been to “redefine” what con- I have met so many wonderful
12%
for Medicare Part B and prescription-drug cov- by Mr. Sandaas in Washing- stitutes “work.” people when I take the dogs for walks”), volun-
Paying for health-care expenses
erage. “The same change [in premiums] can ton, who lost his wife early in “My former definition of teer groups, nonprofits. The list goes on.
result from the sale of stocks, bonds, etc.,” their retirement. The two had 3% work was to earn money to Bill Heitz, former chief executive officer of
notes Elizabeth Gillette, a retired communica- hoped to plant a vegetable Paying for extras pay bills. My current defini- a design and construction management com-
tions manager in Ossipee, N.H. “This was garden in their yard and take (travel, large purchases) tion is any activity that bene- pany, remembers vividly the day he retired. He
something we had never heard about.” cooking classes together to fits me or society and [that] walked out of his office in Atlanta and drove
As for household budgets, some readers told “get out of the rut of a re- 6% has a goal. After a little trial directly to a new home in South Carolina,
us that one of the best-known rules of thumb volving menu each evening,” Something else and error, I came up with ex- where the moving van was waiting.
in retirement planning—expect to spend about he recalls. “But that didn’t Source: AARP's Fantasies and Fears: ercising every morning as my “What surprised me most about retirement
80% of your preretirement income in retire- happen.” And while they Attitudes of Adults Ages 35-Plus, June 2016 ‘work,’ with the goals being to was how quickly and completely I left behind
ment—is, well, hogwash. managed to travel extensively THE WALL STREET JOURNAL. stay healthy and to reduce my a 37-year career,” he recalls. His days filled up
“The big reality is that you will spend 100% early in retirement, they had time in the local sprint triath- immediately: golf and cycling with new neigh-
of your preretirement income after you retire,” hoped for more. lon to under two hours.” bors, photography, woodworking, volunteering
says Steven Fechner, a retired geologist in “To those who might think there may be too He has “no idea where this will end up, as (with Score, a national organization of retirees
Reno, Nev. Yes, some expenses are lower, he al- much postretirement travel, I say: Don’t hold things are still evolving, but my need to ‘work’ who mentor entrepreneurs) and serving on his
lows, including commuting costs and clothing. back,” Mr. Sandaas says. It “may not be possi- is fulfilled, [and] self-esteem is back to normal.” community’s board of directors.
But those savings, he adds, are “eaten up by ble in later years for a variety of reasons.” “I learned the truth in what I had heard:
costs associated with having more time.” Mr. Sears added that he is remarrying, The Ties That Bind Happiness in retirement is directly related to
PHOTO ILLUSTRATION BY LINDSAY HOLMES
Among them: much to his surprise. “It never occurred to me Finally, reader after reader told us that, de- the people you spend time with,” he says.
• Travel and recreation. “Instead of a to think about marrying again,” he notes. But spite concerns to the contrary, they are finding “What I found remarkable is that, in a commu-
yearly trip, now you take two or more.” he credits his wife-to-be with “saving me from new friends in retirement. nity full of extremely successful retirees, very
giving up.” The two have “Maybe the biggest surprise was the change few talk about their careers. People here are fo-
known each other since in my social life,” says Erika Lockhart, a for- cused on each other and in learning new skills
the 1960s. mer fire investigator in Albany, Calif. Her work and exploring new adventures. What a life!”
“She and my wife had typically had involved long hours, and, after
been friends all those retiring, “I was feeling isolated,” she recalls. Mr. Ruffenach is a former reporter and editor
years, so my wife is still Her solution: She organized two meetup for The Wall Street Journal and former editor
part of our life,” Mr. groups—a walking group and a cooking group, of the paper’s “Encore” retirement reports. He
Sears notes. “Her name both of which have been active for two to can be reached at [email protected].
comes up often and com-
fortably.”
“I feel better than I And Mr. Sandaas, after
have in years” his wife died, eventually The Journal Report welcomes REPRINTS AVAILABLE
William Wilson, who bought an Airstream your comments—by mail, fax or
cycles daily and has lost travel trailer and began email. Letters should be ad- FULL PAPER: The entire Wall Street Order by:
40 pounds crisscrossing the coun- dressed to Lawrence Rout, The Journal issue that includes the Wealth
Wall Street Journal, 4300 Route 1 Email: [email protected]
try, logging 20,000 miles Management report can be obtained for
North, South Brunswick, N.J. $10 a copy. Order by: Mail*: Dow Jones LP
in the past three years. Attn: Mailing Operations Dept.
08852. The fax number is
“In addition to all the Phone: 1-800-JOURNAL 84 Second Ave.
609-520-7256, and the email Chicopee, Mass. 01020-4615
sights, the bonus is the address is [email protected].
Fax: 1-413-598-2259
interesting people along Mail*: Wealth Management Report REPRINT OR LICENSE ARTICLES: To
the way,” he notes. Dow Jones & Co. order reprints of individual articles or
Attn: Back Copy Department for information on licensing articles
84 Second Ave. from this section:
• Medical. “Instead of putting off medical Losing Yourself THE JOURNAL REPORT Chicopee, Mass. 01020-4615
Online: www.djreprints.com
tests because you didn’t have the time, you Another warning from readers: Don’t be JOURNAL REPORT ONLY: Bulk orders of Phone: 1-800-843-0008
now try to figure out every ache and pain as- surprised if walking away from work is more For advertising information this Journal Report section only may Email: [email protected]
sociated with aging.” And you often don’t have painful than you anticipate. please contact Katy take up to six weeks for delivery and
can be obtained for $5 for one copy, *For mail orders, do not send cash.
the same comprehensive insurance coverage “My biggest and most unanticipated retire- Lawrence at 212-416-4119 $2 for each additional copy up to 50, Checks or money orders are to be made
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• Family duties. As in: “Attending social self-value,” says Kevin Blakely, a former bank-
THE WALL STREET JOURNAL. Monday, February 13, 2017 | R3
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1
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TAXES | TOM HERMAN
The Benefits From a Double Major? Everything You Really
The advantage Should Know About
is less than the ‘Nanny Tax’
many believe After a long absence, nanny taxes are back in the headlines.
Nanny taxes don’t just apply to nannies. The term is short-
hand for federal and state employment taxes required of many
BY LISA WARD
people who hire nannies, housekeepers, cooks, drivers and
other household employees and who pay them more than a
THE BENEFITS OF a double certain amount. The subject rarely draws much attention until
major in college seem obvi- someone in the news admits a problem. The latest stories to
ous. By gaining expertise in emerge involve Rep. Mick Mulvaney (R., S.C.), President Donald
two different areas, many Trump’s choice to run the Office of Management and Budget,
believe, students will have a and Andy Puzder, nominated to be labor secretary.
significant edge when it Shortly after Mr. Mulvaney was nominated, he disclosed he
comes to launching and ad- hadn’t paid more than $15,000 in taxes for a household em-
vancing a career. ployee hired from 2000 to 2004 to help care for the family’s
YAREK WASZUL
That may be especially triplets. He said he hadn’t realized the worker qualified as an
true, the thinking goes, if a employee. He also said he recently paid the federal taxes and
student can combine a promised to take care of everything else owed. Mr. Puzder,
higher-paying degree in sci- chief executive of CKE Restaurants, didn’t pay taxes for an un-
ence, technology, engineer- documented worker he employed as a housekeeper for a few
ing or math (STEM) with the years but did so after he was nominated, a spokesman for the
creative and cultural benefits trying to get credentials. WSJ: What combination Great Recession when wages executive said recently. Mr. Puzder said he had been unaware
that come from a liberal-arts That led to the question: Is earned the most money? were stagnant. The second the housekeeper wasn’t legally permitted to work in the U.S.
education. there really is any merit to DR. DEL ROSSI: Generally the paper used data from 2010. In the past, nanny-tax-related issues have cost prominent
But a recent paper pub- spreading yourself so thin? highest paying majors are We wondered whether the figures their chance to serve in high-profile jobs. What happens
lished in the Journal of Ben- within STEM fields or in- versatility and skills associ- with the Mulvaney and Puzder nominations remains to be
efit-Cost Analysis casts WSJ: What did you find? clude STEM as one of the ated with a double major seen. But tax experts say many readers should pay attention
doubt on that thinking. DR. HERSCH: We found majors. But the combination protect against recessionary whether or not they dream of landing a top job in Washington.
Part of the problem, the some evidence that certain of liberal arts and STEM pressure. I don’t think they It can be dangerous for employers to assume they won’t get
study’s authors say, is that combinations of double ma- fields don’t have higher esti- did. caught. For example, trouble sometimes erupts when employ-
while double-majoring is jors confer advantages over mated returns than for sin-
fairly common (at about a single major, but they gle STEM or double-STEM WSJ: Do you think it makes
20%, according to the 2010 weren’t overwhelming. For majors. sense to double major?
National Survey of College example, there is some sup- DR. HERSCH: Students who
Graduates) most double ma- port to the notion that being WSJ: Were there gender dif- double major don’t take lon-
jors are in related areas that able to look at problems ferences when it came to ger to graduate, so the costs
provide limited educational from different perspectives earnings? associated with double-ma-
AARON P. BERNSTEIN/BLOOMBERG NEWS

diversity. What’s more, even enhances creativity, as advo- DR. DEL ROSSI: For men the joring are low, but as our re-
combining a liberal-arts ma- cates of liberal arts suggest. most lucrative combination search shows there isn’t a
jor with a STEM or business But students who combine is business and STEM, but huge payoff either.
degree typically doesn’t in- liberal arts with a business for women there seems to I personally think double-
crease earnings or job satis- or STEM major don’t earn be no additional advantage majoring becomes too rigid.
faction, they found. more money than if they ma- of adding a business major There are requirements for
The Wall Street Journal jored in business or STEM to a STEM degree. The find- both majors, limiting the
spoke with the paper’s au- alone. ing may reflect the fact that number of elective courses
thors, Joni Hersch, a profes- more men major in STEM such as political science, art
sor of law and economics at WSJ: Are there other incen- and the added business de- and philosophy, that stu-
Vanderbilt University’s Law tives to double major? gree creates a mark of dis- dents can take. Most double Rep. Mick Mulvaney drew criticism after acknowledging a
School, and Alison Del Rossi, DR. HERSCH: Double-majoring tinction. Whereas so few majors are within a single nanny-tax issue involving a former household employee.
associate dean of faculty af- didn’t affect job satisfaction. women major in STEM [by discipline, like two business
fairs and associate professor Job match—reflecting the comparison] that their ma- majors or two STEM majors.
of economics at St. Lawrence extent students use their ed- jor already distinguishes So, that’s where there is a Fewer Filers…But Bigger Payments
University in Canton, N.Y., ucation on the job—mostly them. loss. The number of people filing Schedule H, the IRS form for
about their research. had no association or a neg- DR. DEL ROSSI: We call it cre- household employment taxes, has decreased over the years,
Edited excerpts follow. ative association with dou- Too rigid dentialization. Students have but the amount of household employment taxes has increased.
ble-majoring. WSJ: How do these findings two majors, three minors
Insignificant advantage DR. DEL ROSSI: For instance, fit with an earlier paper you and work to earn a bunch of Forms filed Taxes paid
WSJ: Why did you decide to students majoring in STEM wrote on the subject? certificates, but all that in-
study double-majoring? alone had a higher job match DR. HERSCH: In the first pa- terferes with the ability to 300 thousand $1.5 billion
DR. HERSCH: We noticed that then students majoring in per, we found that double explore different topics that
250
many students think they both STEM and liberal arts. majors added about 2% to interest them.
need more than one major to It makes sense; if students earnings. That was using 200 1.0
be competitive in the labor major in math and theater data from 2003. The discrep- Ms. Ward is a writer in
market and they’re scattered they are unlikely to find a job ancy between the two papers Mendham, N.J. Email 150
across many different fields that uses all of those skills. may have to do with the [email protected].
100 0.5
50
0 0
THE GAME PLAN 1999 2004 2009 2014 1999 2004 2009 2014
Source: Internal Revenue Service THE WALL STREET JOURNAL.
A LOT OF REAL ESTATE, NOT ENOUGH SAVINGS ers and employees part ways. Nevertheless, the number of
people who file the Internal Revenue Service’s “Schedule H” for
BY LISA WARD
household employment taxes has fallen sharply. The nanny tax
“appears to have fallen off the compliance radar screen” for
Allen Wittert and Celia Dyer own two many taxpayers, says Martin Hall, a partner at the Ropes &
homes and are considering buying a Gray law firm in Boston and head of its private client group.
third. But does tying up more of their Ignorance of the law may play a role in noncompliance. Peo-
assets in real estate make financial ple who hire household workers for the first time may not be
sense? aware of all the rules, such as how to define a household “em-
Last year, the couple and their two ployee,” says Guy Maddalone, founder and chief executive offi-
children, ages 10 and 14, moved to cer of GTM Payroll Services Inc. and author of “How to Hire a
Houston where Ms. Dyer began a new Nanny: A Household HR Handbook.”
job as a business analyst for a software Here’s a suggestion for busy people who want to comply
company. Mr. Wittert, 51, is a painter but can’t stand all the time-consuming paperwork hassles:
who sells his work through a network of Turn to a professional company, such as GTM or many others,
galleries. He also freelances for ad agen- to handle the job. For the do-it-yourself crowd, keep in mind
cies. The couple’s combined wages are that the rules “can be tricky” and include important exceptions,
about $210,000 a year. Mr. Wittert’s says Greg Rosica, a tax partner at Ernst & Young LLP in
STEPHEN GOLDBERG
monthly’ earnings vary greatly but aver- Tampa, Fla., and a contributor to the “EY Tax Guide.”
age about $3,000. Here are a few key points:
Originally from South Africa, the cou- Nanny tax rules apply to household “employees,” but not
pled moved to London in 1994, buying a “independent contractors.” What’s the difference? “The worker
flat for £93,000 (about $116,000 at cur- is your employee if you can control not only what work is done,
rent rates). Six years later, they moved Since Celia Dyer and Allen Wittert have assets that are mostly illiquid, an adviser but how it is done,” the IRS says in Publication 926. “If only
to Connecticut, where they bought a suggests they build up a six-month emergency cash reserve. the worker can control how the work is done, the worker isn’t
house in which they lived for 14 years. your employee but is self-employed. A self-employed worker
Before winding up in Houston, they also umbrella insurance. signed for self-employed people. He usually provides his or her own tools and offers services to the
lived in San Francisco, where they con- Ms. Dyer has a 401(k) from a former should try to invest at least $6,500 an- general public in an independent business.”
sidered buying a home but were priced employer worth about $170,000. The nually, Ms. Keener says, though he could Also, if an agency provides the worker and controls what
out of the market, Ms. Dyer says. couple also has an investment account invest as much as $15,500. work is done and how, “the worker isn’t your employee.”
They kept the two homes mainly for worth $15,000, a savings account with Saving for retirement and college Generally, for 2016 and 2017, an employer needs to pay
the rental income, which they believe $15,000 and a 529 college-savings ac- would be ideal, but if that isn’t possible, Social Security and Medicare taxes for “cash wages” of
could be useful when they retire. Ms. Dyer, count worth $19,000. They contribute Ms. Keener recommends prioritizing an $2,000 or more paid to any one employee. Cash wages refer
who is 47, adds she is a bit leery of finan- $500 monthly to the investment ac- emergency fund and saving for retire- to checks, money orders and the like. They don’t include “the
cial markets. The house in Connecticut is count and $300 to the 529. ment. “There are many ways to finance value of food, lodging, clothing, transit passes and other non-
now worth about $400,000 and rents for college, but not retirement,” she says. cash items you give your household employee.” But cash given
$2,700 a month. The flat in London is ADVICE FROM A PRO: Jean Keener Once they build their emergency fund to an employee in place of those items counts as cash wages.
valued at the equivalent of about of Keller, Texas-based Keener Financial and boost retirement savings, they should Don’t count wages paid to your spouse or your child un-
$385,000 and rents for about $1,250. Planning, suggests the couple build up see how much is left over for housing. der 21, the IRS says. Wages paid to your parent typically don’t
The two properties have big expenses. their cash reserves and retirement ac- Property taxes and insurance must be apply, either, although there are exceptions.
The couple pays $1,700 a month to cover counts before buying another home. part of their calculation. She recommends Don’t count wages paid to an employee under 18 at any
the mortgage and a home-equity line on “A lot of their assets are illiquid, which refinancing the mortgages to a fixed rate time during the year, unless providing household services is
the Connecticut home. They owe poses some risk,” says Ms. Keener. With before interest rates rise again. “the employee’s principal occupation,” the IRS says. If the em-
$205,000 on the mortgage and $61,000 real estate they earn income from rent, but They should also determine the true ployee is a student, “providing household services isn’t consid-
on the home-equity line. Both loans have they can’t immediately access the principal, cost of the rental properties they own, ac- ered to be his or her principal occupation.”
floating rates, resetting annually. the capital invested in the property. counting for nonrecurring expenses, like For details on how much to pay and on the federal unem-
For the London apartment, they pay She recommends increasing their vacancies, repairs and maintenance costs ployment tax, known as FUTA, see Table 1 on page 4 of Publi-
£360 a month for two mortgages whose emergency fund to six months of living over time. They should try to predict the cation 926. Table 2 has a handy household employer’s checklist
rates reset annually. One loan is interest expenses or $50,000 in cash on hand. lifetime return on the properties and com- of what to do for those with a household employee.
only. They have about six years of pay- The couple should be able to put away pare that with what they are likely to Ask your state unemployment-tax agency for the rules on
ments left on about $75,000 in remain- between $1,000 and $2,000 each earn in an investment account. state unemployment tax. Also check out the rules on other
ing debt. They also pay about $190 a month. They should closely look at their “If the properties appreciate at 4%, state employment taxes or requirements for workers’ compen-
month to maintain and insure the apart- budget, identifying any missing items total return, including income and appre- sation insurance.
ment. and rethinking discretionary spending. ciation, would be about 7%. That might Don’t focus solely on tax issues. Make sure you have ar-
They have no credit-card debt. But The monthly contributions to the emer- be comparable to a liquid stock and bond ranged for all the proper insurance coverage needed to protect
other monthly expenses include: $3,000 gency fund should be automatically with- portfolio,” she says. If they decide to sell you and people working in your home, says Mr. Hall of Ropes
in rent; $250 on utilities; $1,700 on gro- drawn. their real-estate holdings, she advises & Gray. “There’s an awful lot more to this than just filling out
ceries; $1,400 eating out; $600 on a pri- Ms. Dyer should open a new 401(k) putting the profit toward retirement, not tax forms. Shortcuts can prove expensive,” he warns.
vate school; $285 to finance a second and maximize her contributions, investing buying another property.
car, on which about $16,000 is still $1,500 a month. Mr. Wittert, too, should Mr. Herman is a writer in New York City. He was formerly The
owed; $150 on gas; and about $1,100 on save for retirement in a tax-advantaged Ms. Ward is a writer in Mendham, N.J. Wall Street Journal’s Tax Report columnist. Send your comments
policies for health, car, home, rental and account, mostly likely a Simple IRA de- Email her at [email protected]. and tax questions to [email protected]. Please include
your full name, address and phone number in case we need to
contact you to get more details about your question.
New Thinking
About an Old Tool
Financial experts say younger
retirees—starting at age 62—
could benefit from using reverse-
mortgage lines of credit
the credit line grows over
BY JEFF BROWN
time, by amounts tied to the
course of interest rates, and
RISING INTEREST rates could the unused portion can be
make reverse-mortgage lines converted to a substantial
of credit more appealing to monthly income years later.
younger retirees. And today, with inflation and
A reverse mortgage is a interest rates widely expected
type of loan taken against eq- to rise, these credit lines could
uity in a home, available to be particularly valuable.
borrowers who are at least 62. “Now is an exceptionally
It requires no monthly pay- good time to be considering
ments, with interest charges adding a [reverse-mortgage]
CARL WIENS
instead added to the loan bal- credit line to the retirement
ance and paid only after the blueprint,” says Shelley Gior-
homeowner sells or dies. The dano, chair of the Funding
loan can be taken as a lump Longevity Task Force at the
sum or as monthly income, or American College of Financial tapping into the line of credit Another proponent is Jack wishes to leave a home free verted to a monthly income of
as a line of credit, with no in- Services. Interest rates are when needed can substantially M. Guttentag, professor emeri- and clear [of debt] to their nearly $5,000—less if any of
terest charges on unused low, which increases the credit improve the long-term sus- tus of finance at the Wharton heirs,” says Steven Klein, re- the credit has been used—
amounts. limit on reverse mortgages, tainability of a retirement-in- School of the University of verse-mortgage director with based on standard industry
Many homeowners wait un- she notes, and if rates rise come portfolio, meaning you Pennsylvania, who provides in- AmCap Mortgage, in Green- formulas. If interest rates go
til well beyond 62 to take a re- over the life of the loan, that can make your money last lon- formation on mortgages on his ville, S.C. higher, the credit line would
verse mortgage, because gen- will add to the growth of the ger,” says Jamie Hopkins, as- education website, the Mort- But over many years, the be larger; if they fall, it
erally the older the borrower credit line. Since interest rates sociate professor of taxation gage Professor. “It’s a can’t- credit line can grow to be wouldn’t grow as much.
is the more he or she will be tend to rise alongside infla- at the American College of Fi- miss deal,” so long as the bor- quite large, especially if inter- Taking a credit line at an
qualified to borrow. tion, the growing line of credit nancial Services. rower can resist plundering est rates rise. Here’s how it early age could also mitigate
In recent years, though, would provide an inflation The strategy—called a the credit line for nonessen- works: These credit lines carry the danger of the home’s value
more financial advisers have hedge, she says. standby reverse mortgage, or tials, he says. adjustable interest rates that falling, a decline that would
warmed up to the idea of SRM, by some—has been typically reset every month or reduce the amount of credit
homeowners taking a reverse- Running the numbers pushed in financial journals by Not for everyone every year. Once the initial available through a reverse
mortgage line of credit when “Research has shown that a number of academics, start- The chief downside: Sums credit limit is set—based on mortgage taken later. And the
they are as young as 62, as a setting up a line of credit as ing with a 2012 paper by Barry taken through any reverse interest rates, the home- credit line grows regardless of
way to boost their nest egg. soon as possible, age 62, in or- H. Sacks, a tax attorney in San mortgage, including any owner’s age, the home’s value changes in the home’s value. If
The key to this strategy is that der to let it grow and only Francisco, and his brother Ste- amount actually borrowed and its location—it grows each the home’s value soars, the
phen R. Sacks, a professor through a line of credit, re- year by the current interest homeowner could scrap the
emeritus of economics at the duce the equity available for rate on the loan plus 1.25 per- old credit line and take out a
Tapping Equity University of Connecticut. other purposes—like moving centage points, which is the new, larger one against the
The number of home-equity conversion mortgages made since the They recommend drawing to another home or buying loan’s annual mortgage-insur- higher value.
program's inception, for each fiscal year ended Sept. 30. HECMs are from the credit line when in- into an assisted-care facility— ance charge. “A reverse-mortgage line of
reverse mortgages insured by the Federal Housing Administration vestments like stocks and or for the homeowner’s heirs. For example, FirstBank, a credit can be a saving grace
and account for nearly all reverse mortgages made. bonds are down, so the home- Also, the fees to set up a re- lender in Birmingham, Ala., of- for the baby boomers who
owner enjoys a steady income verse mortgage can be steep— fers a 62-year-old borrower simply do not have enough re-
120 thousand and gives other investments roughly $9,000, for instance, with a $400,000 home in the tirement savings” if home eq-
time to recover, allowing them for a line of credit of about Philadelphia suburbs a credit uity is ignored, Prof. Hopkins
100 to last longer. $200,000 in the example be- line starting at $200,668, at an says. “If home equity is incor-
They said the strategy was low—and erode the equity in initial rate of 5.70%—a 4.45% porated more strategically in
80 successful in 1,000 Monte the home if they are financed interest rate on the loan plus the future, we will see vast
Carlo simulations, which run through the credit line. the 1.25% insurance charge. If improvements in the financial
60 calculations over and over “It may not be best for a the interest rate doesn’t security of retirees.”
while varying key factors like short-term play” because of change, the credit line will
40 interest rates and investment the time it will take for the grow 5.70% a year, reaching Mr. Brown is a writer in
returns. Not only did it im- growth of the credit line to more than $600,000 in 20 Livingston, Mont. He can be
20 prove the borrower’s chances offset the fees, “or if one years. It could then be con- reached at [email protected].
157 of enjoying steady income to
0
an advanced age, it could also
1990 ’95 2000 ’05 ’10 ’15 produce a larger income along
Source: National Reverse Mortgage Lenders Association THE WALL STREET JOURNAL. the way, they reported.
THE GAME PLAN
TIME TO REVISIT THE 401(K)

BY VERONICA DAGHER
Jeff Tennery hasn’t contributed to his 401(k)

in more than two years.
The 48-year-old isn’t happy about it, but
he’s using the money to invest in his business,
Moonlighting Marketplace, a mobile com-
pany that helps people buy and sell their ser-
vices and products peer-to-peer.
Mr. Tennery, a husband and father of five,
ANDY STAFFORD
founded the company about three years ago

in Charlottesville, Va. Before that he was an
The One
early employee or co-founder of two compa-
nies that were acquired. The sales of those
companies, he says, netted him several mil- An adviser suggests Jeff Tennery look into a
lion dollars. higher-deductible insurance plan.
Those sales didn’t prompt him to retire or
to spend lavishly. Rather, after the first sale, a senior financial planner and managing direc-
about 14 years ago, Mr. Tennery and his wife, tor at Altfest Personal Wealth Management in
Denise, moved their young family from New New York.
York City to Charlottesville. They liked the
lower cost of living. They also like Virginia’s
colleges. “We’re frugal,” he says.
With the five children ages 9 to 20,
there’s no shortage of expenses. The cell-
phone bill is about $500 a month. Mr.
Tennery says his company doesn’t yet offer
Mr. Palazzo says the premiums seem high
and he recommends checking the price of a
higher-deductible plan in conjunction with a
health-savings account. Mr. Palazzo recom-
mends seeing whether the higher deductible
can be more than offset by lower premiums.
Mr. Tennery should also remember that
with Impact
health insurance so he is paying about contributions to HSAs are tax deductible and
$1,800 a month for coverage for his family. that earnings grow tax-deferred. In addition, Sustainability pioneer S&P DJI offers an array of
The insurance has a $2,000 deductible, but withdrawals may be tax-free if used for quali-
with someone in the family always sick, fied medical expenses. indices based on independently researched ESG
breaking a bone or having some other minor “It’s a shame Mr. Tennery isn’t taking ad- factors. As institutional investors unite with
health issue, they reach the deductible vantage of his 401(k),” Mr. Palazzo says. He
quickly, he says. suggests that Mr. Tennery check with his ac- policy makers under one PRI — the Principles for
“The cost of health care is absolutely my countant to see whether it makes sense to
biggest pain point,” he says. contribute and then compensate by making
Responsible Investment — we elevate long-term
While Ms. Tennery works full time looking larger withdrawals from his cash accounts, if thinking for a better, more sustainable world.
after the family and household, Mr. Tennery he can afford it from a five- to seven-year
gets a roughly $90,000 salary from Moon- cash-flow standpoint.
lighting—far lower than what he was earning Having seven years of living expenses in
at prior jobs. cash may be a “bit more conservative than
He has less than $1 million saved in his necessary,” Mr. Palazzo says. If Mr. Tennery’s
401(k) and 529 college-saving plans for the
children. About 70% of that money is in-
risk tolerance allows, he might consider put-
ting half of that money into a mix of high-
indexology®
vested in stock mutual funds, 20% is in-
vested in bond mutual funds and the remain-
quality, shorter-term bonds and inflation-in-
dexed bonds.
impact investing
ing 10% is in cash. Mr. Tennery also has Mr. Tennery also should check the asset al-
seven years’ worth of family expenses saved locations of the 529 accounts. The accounts spdji.com/indexology/sustainability
in cash to help supplement his salary. for the children at or approaching college age
The family has no credit-card debt and al- should be “quite conservative,” Mr. Palazzo
most owns their home outright. says. Moreover, he says, a greater share of
Mr. Tennery hopes the business will break the assets can be placed in accounts for the © S&P Dow Jones Indices LLC, a division of S&P Global 2017. All rights reserved. S&P® and Indexology ® are
even this year. He also hopes he’ll eventually older children as unused portions can be registered trademarks of Standard & Poor’s Financial Services LLC. Dow Jones ® is a registered trademark
be able to increase his salary, offer health in- transferred to the younger children. of Dow Jones Trademark Holdings LLC. The Dow Jones Sustainability Indices are published by S&P DJI
surance to his employees and start saving with RobecoSAM AG. It is not possible to invest directly in an index. S&P Dow Jones Indices receives
for retirement again. Ms. Dagher is a reporter for The Wall Street compensation for licensing its indices to third parties. S&P Dow Jones Indices LLC does not make investment
Journal in New York and host of the Watching recommendations and does not endorse, sponsor, promote or sell any investment product or fund.
ADVICE FROM A PRO: “The health insur- Your Wealth podcast. Email
ance is a significant issue,” says Paul Palazzo, [email protected].
After Artists Die, ADVISERS’ VOICES

DAN YU
Their Molds and ESTATE

Plates Live On PLANNING FOR
CHILDLESS
The posthumous output can vary COUPLES
greatly in quality—and in price
SOTHEBY’S NEW YORK

Childless couples have special
tion of “Los Caprichos” was printed needs when it comes to wealth
BY DANIEL GRANT
during Goya’s lifetime. But Goya management and estate planning.
willed the plates to the Prado Mu- While they often have more fi-
LIFE AFTER DEATH can be common seum in Madrid, which has periodi- nancial flexibility than families
in the workshops of famous sculp- cally leased them since that time to with children, they still need to
tors and printers. Sometimes, way different publishers as a fundraiser. Estate casts of Remington sculptures run $100,000 to $1 million, says Sotheby’s plan early for the future and con-
too common. By 1937 there were 12 known edi- Liz Sterling. A lifetime cast of ‘Wounded Bunkie’ reached $5.6 million in 2008. sider what will happen if one of
For years after an artist’s demise, tions. There’s no record of how many them dies.
the same molds and plates the artist editions have been printed since. says. The lines are not as sharp. The larly wary of their histories. Reming- Take long-term care insurance.
used to produce original works can For most fine prints in general, shading weakens or is uneven or has ton, who lived from 1861 to 1909, is Childless couples who are finan-
be re-used by their heirs or ap- earlier editions are the most sought- just disappeared.” Still, he says, “I famed for his lifelike depictions of cially secure may be willing to pay
pointed licensees to continue in the after, because they more closely re- see some people pay $800 to $900 the American West, particularly his out of pocket for long-term care if
artists’ footsteps, making copies in- flect the artist’s intentions. Printing for these things at auction.” bronze statues of cowboys and caval- preserving assets for heirs isn’t a
definitely. plates tend to wear out, producing A principal source for identifying rymen on horseback. “Ninety percent priority. But if the couple isn’t
Indeed, the posthumous output of less-distinct images over time; the artworks is a catalogue raisonné, an of the things that say ‘By Frederic wealthy, then this insurance may
some artists can greatly exceed the annotated listing of all the known Remington’ I wouldn’t get near, and be necessary as a surrogate to
number of works they produced artworks by an artist. Catalogues 90% may be a low estimate,” says the care a family could provide.
while living. What’s more, the qual-
Earlier editions are raisonnés, found in museum and uni- Ms. Duncan, who says her gallery Childless couples also need to
ity of the posthumous work tends to the most sought- versity libraries, provide illustrations will only take on consignment Rem- think about who gets their assets
vary—as do the differences in value. that can be checked against an art- ington sculptures that can be proved after they die. Some choose to
So, for collectors of sculpture and
after since they work. They also note when certain to have been produced during the leave all of their money to charity.
fine prints, it is essential not only to more closely reflect editions were produced, numbers of artist’s lifetime or by authority of his If that is the case and they are in
know whether a work was created copies (if that information was avail- widow, Eva, who died in 1918. a high tax bracket, they may want
during the artist’s lifetime, but when
the artist’s able), which print publisher or After 1918, unknown quantities of to set up a donor-advised fund to
and where it was cast or printed, intentions foundry made the edition, changes “Remingtons” were produced as the maximize deductions and disperse
and, if it is a posthumous piece, by made and the quality of the work. foundry used by Remington himself the funds over many years.
whose hand. Alice Duncan, director of New cast more bronzes using his molds, Another option is to make a
lines cut into the plates get clogged York’s Gerald Peters Gallery, recom- and other foundries created their charity the contingent beneficiary
Records vary with dried ink and need to be re-in- mends always asking for an art- own molds using existing sculptures on individual retirement accounts
Pinning down details about 20th- cised by someone else. Later, post- work’s history of ownership, or prov- as models. The copies may look and 401(k) plans. This simplifies
century and more recent works typi- humous-edition prints no longer enance, and the date the work was close, but when compared with doc- the probate process because
cally is not difficult because modern clearly reflect the hand of the artist, produced, as well. umented Remington sculptures, the these assets don’t pass through
printmakers and sculptors have kept have less prestige and usually bring Art advisers will do this kind of differences become evident. the couple’s will.
better records than their forebears, lower prices. research for a collector, but such Liz Sterling, senior vice president As for life insurance, childless
and tend to produce more limited help doesn’t come cheap. Advisers and head of American art at So- couples may not need as much as
editions. But for artists from the Prices range usually charge around 10% of the theby’s, says the median price of life- couples with children. And unless
18th and 19th centuries, it’s a com- An undamaged print from the first value of the art being acquired, time casts of Remington’s sculptures their estates are very large or
pletely different story. In many edition of “Los Caprichos” would be though they may set fees on a per- are “several million dollars,” reaching complicated, they probably won’t
cases, numerous editions have been priced at $3,000 to $5,000, says hour basis. Wendy Cromwell, a Man- a high of $5.6 million at Sotheby’s in need a permanent policy such as
produced over decades, if not centu- James Goodfriend, owner of New hattan adviser, puts the hourly range 2008 for the artist’s 1896 “Wounded whole life. Permanent policies are
ries, without much of a paper trail of York’s C&J Goodfriend Drawings and at between $75 and $250, depending Bunkie.” Prices for estate casts, those often used for estate-planning
what was done and when. Prints. Prints from the posthumous upon the experience of the adviser. made under Eva Remington’s author- purposes when people want
Take Francisco de Goya, one of second and third editions, dated 1855 ity, of the same pieces range from money to go to their children and
Spain’s most treasured artists. Goya and 1868, respectively, “are very Casts off $100,000 to $1 million, she says, and to cover any estate-tax liability.
died in 1828 at the age of 82. In 1799, good and very hard to tell apart,” he To judge the value of good detec- the auction house doesn’t handle
he oversaw the printing of a set of adds, but sell for $1,500 to $2,000. tive work, consider the works of an castings later than 1918. Mr. Yu is managing principal of
80 etchings and aquatints known as Mr. Goodfriend says he sells prints artist as well known as Frederic EisnerAmper Wealth Advisors
“Los Caprichos,” or “Whims,” scenes from later editions for $150. Remington. Posthumous sculptures Mr. Grant is a writer living in LLC in New York City. He can be
mocking the ignorance and supersti- “I only keep them around to attributed to Remington are so nu- Amherst, Mass. He can be reached reached at [email protected].
tion in Spanish society. Only one edi- show people what not to buy,” he merous that art dealers are particu- at [email protected].
THE EXPERTS
Insights on Savings and Target-Date Funds

Six Questions to Gauge Financial Health 2%. After one year, with the money in this ac- The cost can vary significantly by provider,
Many people, when thinking about their finan- count, would you be able to buy… from free to an annual fee exceeding 0.5% of
cial health, focus on a single indicator, such as portfolio assets. For some participants, this fee
whether they are saving enough for retirement A. More than today may be well worth the costs; don’t assume that
or carrying too much student-loan debt. B. Exactly the same as today a more customized service will magically im-
The questions that follow, based on a body of C. Less than today prove your retirement picture. If you’re already
national and international research, provide a D. Don’t know doing the right things—saving enough, looking
broader perspective. How you answer can pro- at your total wealth holistically, etc.—then the
The Experts are an vide a starting point for better understanding 6. True or false: Stock in a company usually benefit of a managed account might be reduced.
and improving your personal finances. (More in- gives a safer return than a stock mutual fund. —David Blanchett, head of retirement research,
online group of depth questions from a national survey on finan- Morningstar Investment Management
industry and thought cial capability are available online at www.usfi- (Answers: 4. A.; 5. C.; 6. False.)
i i i
leaders who blog about nancialcapability.org.) As companies and others look for ways to help
employees become financially fit, this test may
topical issues in their 1. How confident are you that you could come provide them with a tool to measure, assess and Time to Rethink Emergency Savings
fields of expertise. up with $2,000 if an unexpected need arose reconsider what they are doing. Perhaps it is Why aren’t more people saving for emergen-
Edited excerpts follow. within the next month? something to add to employee benefits in 2017. cies? Or, when people are saving, why do so
—Annamaria Lusardi, Denit Trust Chair of many not use those savings wisely?
For more, go to A. I am certain I could come up with it. Economics and Accountancy, George It isn’t like people don’t know what to do.
WSJ.com/Experts. B. I could probably come up with it. Washington University School of Business I’ve been to many meetings where financial ex-
C. I could probably not come up with it. perts tell each other, “If we could just get peo-
i i i
D. I am certain I could not come up with it. ple to save six to nine months of income.” This
advice seems so sensible, so economically
This question looks at one’s balance-sheet (not Look Beyond Target-Date Funds sound, my peers believe that if they repeat it
just assets) and how one manages resources. Re- Target-date funds have exploded over the often enough, people eventually will act on it.
search links the lack of resources or the inability past few years as they’ve become the most But it isn’t resonating. Some 50% of Ameri-
to access them when facing a midsize shock with common default investment option in defined- cans don't have a “rainy day” fund, according to
indicators of financial distress. contribution plans such as 401(k)s. the 2015 National Capability Study.
But that doesn’t mean they’re always the Here are four mental traps that stop people
2. Yes or No: Have you ever tried to figure out best option. from saving for and wisely using emergency funds:
how much you need to save for retirement? Target-date funds are one of three invest- It’s just too much money. Preaching six to
ment types “qualified” to be used as the default nine months for many is unrealistic. Instead,
Academic research shows that those who an- option for participants in a 401(k) plan who are let’s be encouraging—even $500 is meaningful.
swer affirmatively have up to three times the automatically enrolled. The other two are tar- It’s achievable and validates progress. Imagine
amount of wealth as they near retirement as get-risk funds (like a balanced fund) and man- what $1,000 or $2,000 feels like? Hit that start-
those who have not made any plans. aged accounts (such as a robo advice solution). ing goal, raise the bar higher and never stop.
Managed accounts are a gem that hasn’t yet I don’t believe I’ll need it. People have to un-
3. On a scale from 1 to 7 (1 = strongly disagree gotten the acclaim that target-date funds have. derstand it isn’t a question of if unexpected
and 7 = strongly agree), how strongly do you Target-date funds are a notable improvement events will happen, but when they will happen.
agree or disagree with the following state- to allowing plan participants to pick a few op- There is a 60% probability that you will experi-
ment: I have too much debt right now. tions without giving much thought to portfolio ence a financial shock in 2017, and these odds are
strategy. They aren’t without their faults, consistent from year to year. How old is that car
The answer to this question reveals both the though. you’re driving? When was the last time you had
extent of the respondent’s debt burden and his or A key problem is that they are a “one-size- to replace an appliance? Do you really think you
her management of finances. Those who choose a fits-all” approach to risk, where everyone the can anticipate the high costs of an injury or med-
value above the median (4) are found to carry same age has the same equity allocation. Can ical emergency, even with insurance?
not only several forms of debt, both short term you imagine a doctor’s office that prescribed a I don’t want to use what I’ve saved. Diligent
and long term, but also to use high-cost methods medication based only on your age? savers who squirrel away emergency savings of-
of borrowing, such as payday loans. This is where managed accounts come in. Us- ten don’t want to use it when hit with an un-
ing a rules-based approach, managed accounts avoidable financial shock. It feels like failure,
The next three questions measure understand- for defined-contribution plans build a custom- watching those hard-earned savings drain away.
ing of the ABCs of personal finance. Those who ized portfolio for each person using the invest- They instead turn to credit cards and help from
correctly answer all three (you’ll find the an- ment options available in the plan. The costs family or friends—alternatives that can be much
swers at the end) are less likely to be financially are typically far lower than those of a human more costly financially or psychologically. We
fragile and over indebted, and are more likely to adviser. A managed-accounts service also can need to reassure people that using emergency
plan for the future and engage in many other be- include advice on required savings levels, ideal savings is a mark of financial competence.
haviors conducive to higher retirement savings. retirement age, and other factors that contrib- I spent it and I don’t want to start over. It
ute to reaching your retirement goals. hurts losing your safety net, but you have to ac-
4. Suppose you had $100 in a savings account To determine the truly optimal portfolio, the knowledge this will be the case—perhaps sev-
and the interest rate was 2% a year. After five solution needs information about plan partici- eral times throughout your life. It’s true that
years, how much would you have in the ac- pants that will exist outside what is available even six to nine months of savings can be
count if you left the money to grow? from the plan sponsor. Therefore, the more en- wiped out with an unforeseen event. We have
A. More than $102 B. Exactly $102 gaged the individual is with the tool the more to concede that when this happens our emer-
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THE WALL STREET JOURNAL. NY Monday, February 13, 2017 | R9
The Opportunities—and Pitalls—of New Fafsa Timing

College applicants can now apply earlier for financial aid. Here is what you ought to know.
next several months. quired to use their tax infor-
BY JILLIAN BERMAN
If financial-aid offers come Time Management mation from two years prior.
in from some schools earlier How college enrollment managers say schools are dealing with the earlier availability of the Fafsa Thus they’re using 2015 tax-
THE COLLEGE-APPLICATION than in years past, applicants year information for the
and decision process just got a may be tempted to commit to Early Fafsa activity When are need-based offers being Are need-based financial 2017-2018 application year.
bit more complicated. a school earlier, before they’ve sent out, compared with last year? aid offers being sent out Doing it this way encour-
That’s because the received financial-aid offers with acceptances? ages families to use the IRS
Around the
2017-2018 college-application from all of the schools where Yes, with some data retrieval tool—since few
Moderate same time 2-3 weeks earlier
cycle marks the first time stu- they applied. will have filed their 2016 faxes
dents and families could apply Some say that colleges, too, 43% already—and so increases the
for federal financial aid in the may consider adjusting the 21% odds that their tax informa-
No No
fall, several months earlier ways in which they extend of- 20% tion is accurate. Also, Mr. Kan-
31% 67% 79%
than in the past. The govern- fers. For instance, with more trowitz says, if applicants
Significant
ment’s goal in opening the applications coming in earlier, were given the option to sub-
41%
Free Application for Federal the schools will have to decide 24% Private Public schools mit tax data from either one
Student Aid, or Fafsa, on Oct. whether to make offers ear- 26% or two years prior, they would
1 was to give students and lier—and consider how an ear- Yes, with all | 14% likely choose the year most
families more time to evaluate lier offer might affect a stu- Minimal | 8% None | 7% Yes, with most | 13% beneficial to them. Thus, he
their financial-aid options. dent’s decision. Families may Don’t know | 1% Later 4-8 weeks earlier Yes, with some | 6% says, requiring that the data
Students and families file a have to be patient as the be from two years earlier en-
Fafsa, which includes their in- schools navigate this uncertain Source: EAB Early Fafsa/ISIR Activity, November 2016 poll THE WALL STREET JOURNAL. sures consistency.
come and other financial in- terrain. If a family’s financial situa-
formation, as part of the col- Here are answers and ad- be sending their offer letters provide an estimate of a stu- the glossy brochures provided tion has changed considerably
lege-application process. vice for questions that parents weeks earlier than in the dent’s financial-aid package to them by college staff. “It rein the time between the filing
Colleges and other institutions and prospective college stu- past), students and families with their admission, says Mr. moves that gauze in the re- of its tax data and its applying
that provide financial aid, dents may have as a result of should be wary of jumping on Kantrowitz. Under the new cruiting relationship,” Mr. Far- for financial aid—including the
such as state governments, use the new, longer process: the first decent-looking offer timeline, they’ll be able to in- rell says of the earlier award loss of a job or a divorce—the
the form to determine how that comes their way. The clude more definitive finan- letters. In the past, the gap be- family should alert the col-
much a family can reasonably
contribute, how much the in-
stitution will provide in grants
Q. What is different about
the aid-application pro-
cess this year?
deadline to choose a school is
still typically the same: May 1.
“The last thing you want to
cial-aid information at the
time of acceptance, he says,
provided the students took ad-
tween when students applied
to a school and when they
found out how much it would
leges, which may be willing to
create a better aid package.
or other “free money,” and

how much they will ask the
family to pay out of pocket or
A. For the first time, stu-
dents can apply for fi-
nancial aid in the fall, much
do is accept one school’s offer
and then have buyer’s remorse
four days later when you get
vantage of the earlier aid-ap-
plication provisions.
cost them meant that often
college recruiters found them-
selves trying to push students
Q. What should families do
if they simply want a
better award?
take on in loans.
So far, it appears that many
families are applying for fed-
earlier on in the broader col-
lege application process. Ide-
ally, that means that students
another aid offer that’s much
more generous,” says Mark
Kantrowitz, the publisher of
Q. If not all schools give
aid offers earlier than in
the past—despite receiv-
to fall in love with a school,
while knowing that at the end
of that process the students
A. Families who seek to ne-
gotiate an aid offer
should appeal to the schools
eral aid earlier, says Peter Far- should have a better sense of Cappex.com, a college and ing the applications earlier— may find themselves disap- they’re interested in as soon
rell, a managing director of whether they can afford a scholarship search site. what can students do to best pointed because they couldn’t as they receive their award
enrollment services at EAB, a school earlier in the process, It appears that at least make use of the offers they afford it, Mr. Farrell says. letter, says Mr. Farrell. But if
Washington, D.C.-based com- assuming schools extend offers some students are already ac- have received before they hear “That’s still going to hap- the offer comes early, families
pany that helps colleges man- earlier as well. The reality is cepting the earlier offers. Mr. from the rest? pen, but the likelihood of that should be prepared to be pa-
age their enrollment. In a re-
cent survey of EAB’s clients,
41% of participants reported
that the new process will take
some adjusting. Students need
to more closely monitor aid-
Farrell says more families are
sending in their deposits ear-
lier than in the past at a broad
A. Having offers in-hand
earlier does give stu-
dents and families the oppor-
happening as much goes
down” with the earlier time-
line, he says.
tient as financial-aid officers
work through the new finan-
cial-aid landscape.
“significant” early activity in application deadlines and get array of schools working with tunity to more thoroughly Families should update
Fafsa filing and 43% said they
had moderate early Fafsa ac-
tivity.
their requests in sooner. But
they won’t necessarily receive
timely aid offers from all of the
EAB. But he adds that even a
relatively small difference in
financial-aid packages, say
evaluate their options, says
Mr. Kantrowitz. For example,
if students get a generous aid
Q. What should students
do if their families’ fi-
nances change between
schools with any new informa-
tion, such as test scores,
awards or competitive financial
But while financial-aid ex- schools where they applied. $1,000, can balloon over time package from a school that the time they applied for fi- offers from other colleges.
perts agree that initiating the if a student opts for the less wasn’t initially at the top of nancial aid and the time they Families may also have a better
Fafsa process earlier will ulti-
mately be a boon to students,
by making it possible to re-
Q. Does the new Fafsa
deadline change when
students have to make
generous package and is forced
to assume $1,000 in debt.
their list, they now have more
time to take another (or their
first) look at the campus and
receive their award?
A. This year, it is more

likely than in the past
shot at getting schools to listen
to their appeal if they identify
exactly what it would take—say
ceive more detailed offers
from schools sooner in the
decisions about which school
to attend? Q. How does the new aid
timeline affect early-ap-
re-evaluate it in this new light.
Having potentially more
that families’ financial circum-
stances will have changed be-
an extra $5,000—for the stu-
dent to attend the school.
whole application and admis-
sions process, families that
have been through the process
A. Even though students
may see some financial-
aid offers trickling in early A.
plication options?
It can be helpful. In the
past, many colleges of-
time between receiving an of-
fer and having to accept an of-
fer also gives students more
tween when they filed the
Fasfa and when they received
their award. That’s because for
Ms. Berman is a reporter for
MarketWatch. She can be
before may now need to alter (more than half of schools sur- fering early notifications of time to consider a school with the first time, in this applica- reached at jberman@mar-
the way they approach the veyed by EAB said they would admission were only able to concrete information beyond tion cycle, families are re- ketwatch.com.
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ASK ENCORE | GLENN RUFFENACH
ADVISERS’ VOICES
Great Movies to Watch About Life in Retirement PAUL BOYD
These films give viewers an inspiring message for later life GETTING A PIECE
What are some good movies
about retirement? Can you point
“Up” (2009) and “Toy Story 3”
(2010). Two animated gems from Dis- OF VC-BACKED
to some films that offer an inspir-
ing message about later life?
ney’s Pixar about letting go of the past
and embracing the future.
FIRMS
Investing in late-stage venture-
Films about retirement and ag- Redemption capital-backed companies can be
ing, despite Hollywood’s obsession “Tender Mercies” (1983) and “Crazy an attractive proposition because
with youth, have enjoyed a good deal of success. Heart” (2009). In each, an aging, down- of the return potential.
The common thread seems to be characters who and-out musician turns his life and work However, the general attitude
are both resilient and defiant, women and men around. Academy Awards for, respec- around the venture-capital market
who refuse to go gentle into that good night. tively, Robert Duvall and Jeff Bridges. these days is one of relative cau-
Among the best: “Birdman” (2014). Michael Keaton tion. Even companies with suc-
SONY PICTURES/EVERETT
plays a washed-up actor trying to resus- cessful track records are being
Drama citate his career on Broadway. (The film asked for evidence of how fast
“The Lion in Winter” (1968). An inspired les- proved to be something of a real-life they’re growing before being
son in how not to transfer a family business from comeback for Mr. Keaton.) awarded additional funding. The
one generation to the next. Peter O’Toole, as an result: It can be hard for investors
aging King Henry II, spars with his calculating Road Trips to identify good opportunities.
queen, played by Katharine Hepburn, over which of “Harry and Tonto” (1974). Art Car- In ‘Still Alice,’ Alec Baldwin and Julianne Moore play a Still, the space remains viable
their three sons will inherit the throne. ney is a widower and retired teacher couple dealing with the wife’s Alzheimer’s diagnosis. and potentially valuable—espe-
“On Golden Pond” (1981). Henry Fonda is a re- who, in a journey across the country cially given the low returns on
tired college professor grappling with his mortality (with his cat in tow), meets many of the challenges fore you reach 65, the Social Security Administra- fixed income. Instead of trying to
and with his estranged daughter, played by Jane and disappointments common to later life with un- tion (which handles Medicare applications) will au- invest in individual companies, I
Fonda. But the film belongs to the older Fonda and common grace and humor. tomatically enroll you in Medicare Part A (and Part would look at some of the ven-
Katharine Hepburn, who plays his indomitable wife. “The Straight Story” (1999). Alvin Straight, B) when you hit that age. Most people, if they ture-capital funds available today.
“Unforgiven” (1992) and “Gran Torino” played by Richard Farnsworth, is an elderly vet- have paid Medicare taxes while working, don’t have These funds tend to be lim-
(2008). Clint Eastwood stars in and directs both eran in Iowa who is determined to visit his ailing to pay a monthly premium for Part A, which covers ited-partnership funds available to
films. Two men—a retired gunman in the former, brother in Wisconsin—and drives a riding lawn hospital expenses. accredited investors, or those with
an aging Korean War veteran in the latter—who mower to get there. A journey of atonement. Second, if you aren’t collecting Social Security a net worth of at least $1 million
have lost their sense of purpose find it again in “About Schmidt” (2002). What happens when and you retire before turning 65, and if you have (excluding the value of their pri-
frightening fashion. you lose everything that has defined you? Jack retiree health insurance through your former em- mary residence) or income of at
Nicholson, as a newly retired (and newly ployer, you will need to enroll in Medicare at 65. least $200,000 a year for the
widowed) insurance actuary, has no job, Your retiree plan will become a “secondary payer” past two years ($300,000 com-
no wife and no purpose. What he does and Medicare will become your primary insurance. bined if married). They also must
have is a 35-foot Winnebago, which car- Third, if you aren’t collecting Social Security at have the expectation to make the
ries him toward a new life. 65 and you’re still employed and have a group same amount this year.
“Nebraska” (2013). Funny and pain- health plan, your employer might require that you These funds, run by firms with
ful. Bruce Dern plays an aging crank sign up for Medicare. extensive experience in late-stage
who is convinced that he has won a $1 Fourth: You’re 65, no Social Security benefits, VC and access to high-profile op-
million sweepstakes and has his son still working, have a group health plan, and your portunities, can provide the higher
drive him 900 miles, to Lincoln, Neb., to employer doesn’t require that you enroll in Medi- growth potential individual inves-
collect his winnings. Difficulties and dis- care. In this case, there’s no outside mandate to tors want, along with the portfolio
coveries ensue. sign up for Part A. But there’s a good reason to do diversification they really need.
so. If you need hospital care, your work insurance That said, these funds aren’t
UNIVERSAL/EVERETT
Love and Loss might not cover all expenses. In which case, you for everyone. Late-stage venture
“Away From Her” (2006); “Amour” could turn to Part A, which would act as a second- capitalists typically look for a two-
(2012); “Still Mine” (2012) and “Still Al- ary payer. to four-year time horizon, so in-
ice” (2014). Four unflinching films about All that said, there is a caveat, notes Philip vestors must be willing to tie up
how illness (mental and physical) can play Moeller, author of “Get What’s Yours for Medi- their money for the near future.
‘On Golden Pond’ features Henry Fonda as a retired professor havoc with aging lives and relationships— care.” A person enrolled in Medicare can’t contrib- Also, not all of these funds are
grappling with his mortality and estranged daughter. and how individuals are able to rise above ute to a health savings account, a tax-advantaged equal. Many have high fees and
their suffering. vehicle that can be used to pay for health-care ex- costs, poor investment execution
Comedy/Fantasy penses. If you have an HSA, and wish to keep and limited, if any, upside. As
i i i
“Cocoon” (1985). Retirement meets science fic- funding it, you’ll need to decide: sign up for Part A, such, investors need to research
tion. With help from some affable aliens, a listless I’m about to turn 65. Am I required to sign up for or stick with your HSA. them thoroughly.
group of retirees find their mojo in this Ron How- Medicare Part A?
ard film. Mr. Ruffenach is a former reporter and editor for Mr. Boyd is managing partner
“Lost in America” (1985). How early retirement You might be. But even if you aren’t, you might The Wall Street Journal and co-author of “The Wall of ClearPath Capital Partners in
can go wrong—and how a nest egg can disappear benefit from doing so. Street Journal Complete Retirement Guidebook.” You San Francisco. He can be
in a single night. Writer, director and actor Albert There are several possible scenarios here. First, can email questions and comments to reached at [email protected].
Brooks at his best. if you begin collecting Social Security benefits be- [email protected].
A new way to plan for tomorrow, today.

Introducing managed portfolios from TD Ameritrade Investment Management.
TD Ameritrade offers a variety of portfolios that can help you meet your goals now and as life changes.
While there are plenty of things you can’t plan for, staying invested won’t be one of them.
Start a conversation with a Financial Consultant about investing today.
Call (800)454-9272 or
visit tdameritrade.com/portfolios to learn more.
Advisory services are provided by TD Ameritrade Investment Management, LLC, a registered investment advisor. All investments involve risk,
including risk of loss. TD Ameritrade, Inc., member FINRA/SIPC. © 2017 TD Ameritrade.

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One New York City Council

summer-jobs program for

Grappling With the Drug Crisis

New Jersey Senate Sets Vote on Equal-Pay Bill

GREATER NEW YORK

CLAUDIO PAPAPIETRO FOR THE WALL STREET JOURNAL (2)

Brooklyn’s High-Tech Pull

ANNUAL Office Campus

SALE chased a 17-acre campus of three

BRITISH MEGASTAR Adele swept

PARENTS, YOU CAN ACE

LIFE & ARTS

West Coast Punk-Rock Draftsman

Works by Raymond Pettibon: far left: ‘No

grandfather’s, for that matter—draw-

LIFE & ARTS

that requires lugging a heavy back- pull-ups and 20 push-ups, he will

A Race So Tough, training in the gym. To stay moti-

He Needs a Year to Train no matter the weather, wearing

pajamas, hang out in

ETHAN MILLER/GETTY IMAGES

UFC | Jason Gay

Dana White Continues the Fight

Weather The WSJ Daily Crossword | Edited by Mike Shenk