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* * * * * * FRIDAY, DECEMBER 13, 2019 ~ VOL. CCLXXIV NO. 140 WSJ.com HHHH $4.00
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What’s
Johnson Leads Tories to Big Win in U.K. Vote
U.S. Agrees to
News Limited China
T
Business & Finance

rump agreed to a limited

trade pact with Beijing
Trade Deal
that will roll back existing tar- Trump clears pact to Michael Pillsbury, an ad-
iff rates on Chinese goods and viser to the president, said he
cancel new levies set to take reduce tariffs in return spoke with Mr. Trump, who
effect Sunday as part of a deal for boost in purchases said the deal calls for China
to boost Chinese purchases to buy $50 billion worth of
of U.S. farm goods and ob- of U.S. farm goods agricultural goods in 2020,
tain other concessions. A1, A6 along with energy and other
 Stocks rose amid signs a President Trump has goods. In exchange the U.S.
deal was imminent, with the agreed to a limited trade would reduce the tariff rate
S&P 500 and Nasdaq closing agreement with Beijing that on many Chinese imports,
at records. The yield on the will roll back existing tariff which now ranges from 15% to
10-year Treasury surged. B11 rates on Chinese goods and 25%.
cancel new levies set to take The Wall Street Journal re-
 The FTC is considering
effect Sunday as part of a ported earlier Thursday that
seeking a preliminary injunc-
the U.S. side has offered to
tion against Facebook over
By Lingling Wei, slash existing tariff rates by
antitrust concerns related to
Bob Davis, half on roughly $360 billion
how its products interact. A1
William Mauldin in Chinese-made goods, in ad-
 The Saudi government and and Josh Zumbrun dition to canceling the tariffs
its wealthiest citizens helped on $156 billion in goods that
lift Aramco to the crown deal to boost Chinese pur- Mr. Trump had threatened to
prince’s valuation target of chases of U.S. farm goods and impose on Sunday. That offer
$2 trillion, if only briefly. A1 obtain other concessions, ac- was made to Beijing in the
cording to people familiar past five days or so.
 The global grounding
with the matter. Should Beijing fail to make
of Boeing’s 737 MAX jet is
Mr. Trump met top eco- the purchases it has agreed
set to stretch to nearly a
nomic and trade advisers on to, original tariff rates would
year, as U.S. regulators
the agreement for an hour be reimposed. Trade experts
chided the plane maker. B1
Thursday, and senior adminis- call that a “snapback” provi-
 The ECB’s Lagarde said tration officials were making sion, though the president
WILL OLIVER/EPA/SHUTTERSTOCK

she detected some initial signs calls to tout the outlines of an didn’t use that term, Mr. Pills-
of stabilization in eurozone agreement, the people said. Please turn to page A6
growth. The central bank
kept rates unchanged. A9
 An affiliate of Liberty Me-
dia is seeking Justice Depart-
ment permission to buy a big-
FTC Weighs Action
ger piece of iHeartMedia. B1
 The NLRB told a judge to
Prime Minister Boris Johnson won a commanding majority in Parliament in the election
Thursday, clearing the way for his plans for the U.K. to leave the European Union.
To Rein In Facebook
approve a settlement in a

Conservative Victory Sets

case pertaining to McDonald’s BY JOHN D. MCKINNON ple said. An injunction could
status as a joint employer, in AND EMILY GLAZER seek to bar Facebook from fur-
a legal victory for the firm. B3 ther integrating apps that fed-
WASHINGTON—Federal of- eral regulators might look to

Stage for January Brexit

 Oracle said it won’t replace
ficials are considering seeking unwind as part of a potential
the late Mark Hurd, leaving
a preliminary injunction future breakup of the com-
Safra Catz as sole chief. B3
against Facebook Inc. over an- pany, one of the people said.
titrust concerns related to A majority of the five-mem-
World-Wide how its products interact, ac- ber FTC would be needed to
BY MAX COLCHESTER projected 364 seats would give That puts Britain in line cording to people familiar seek an injunction, which the
AND JASON DOUGLAS it 68 more lawmakers than all with a host of other Western with the matter. commission would need to file
 Johnson’s Conservatives the other parties combined. countries, including the U.S., If it materializes, the action suit in federal court to obtain.
won a decisive majority in LONDON—British Prime The scale of the victory where shifting voter loyalties by the Federal Trade Commis- The FTC declined to comment.
the U.K. general election, a Minister Boris Johnson won a makes it all but certain that since the financial crash of sion would focus on Face- Facebook declined to com-
stunning victory for the decisive majority in Thurs- Britain will leave the EU at the 2008 have changed the politi- book’s policies concerning how ment. The social-media giant
prime minister, a Brexit day’s general election, a stun- end of next month, completing cal landscape. it integrates its apps or allows has worried for months that
cheerleader, that paves the ning victory for the Brexit a divorce that was backed by Speaking after being re- them to work with potential the FTC would seek an injunc-
way for Parliament to trig- cheerleader that paves the voters in a 2016 referendum elected in his electoral dis- rivals, these people said. tion against what are known as
ger a long-delayed split with way for the U.K. Parliament to but that has been bogged down trict in west London, Mr. Alongside its core social net- its interoperability rules, one
the European Union. A1, A7 trigger a long-delayed split in the country’s Parliament for Johnson hailed the results as work, Facebook’s key products of the people familiar with the
with the European Union. more than three years. “historic” and suggested his also include Instagram, Mes- matter said. Interoperability
 The House Judiciary
Mr. Johnson’s Conserva- It also signals a once-in-a- government “has been given senger and WhatsApp. refers to the manner in which
panel’s chairman halted a
tives secured a majority in generation realignment of Brit- a powerful new mandate to The potential FTC action digital platforms interact.
marathon drafting session
Britain’s 650-seat House of ain’s electoral map, with scores Please turn to page A7 would likely seek to block Please turn to page A2
on two articles of impeach-
Commons, on course for the of long-held working-class Facebook from enforcing those
ment against Trump, call-
party’s strongest performance seats in England and Wales  Pound soars as election policies on grounds that they  Facebook plans to set up
ing for a resumption Fri-
at an election since 1987. Its switching to the Conservatives. result comes into focus..... B11 are anticompetitive, the peo- independent panel.................. A2
day morning with votes. A4
 Top Democratic and Re-
publican lawmakers said
they reached a tentative
Internet Providers Juice Speed Scores Aramco
Briefly Hits
agreement on federal gov-
ernment spending. A4

$2 Trillion
 Saudi Arabia is quietly try-
ing to mend fences with Iran FCC report cards are used to sell broadband packages at higher prices; ‘hard to trust the numbers’
and other regional foes amid
worries about the risks con-
flict poses to its economy. A8
AT&T Inc. was dismayed at its report
card from a government test measuring By Shalini Ramachandran,
to interviews with more than two dozen
industry executives, engineers and gov-
Value Target
 The shootout in a kosher internet speeds. So the telecom giant Lillian Rizzo ernment officials. As a result, the FCC’s
grocery in Jersey City, N.J., sought to change its grade. and Drew FitzGerald report likely gives consumers an unreli- BY RORY JONES
is being investigated by of- The company pushed the Federal able measure of internet providers’ per- AND SUMMER SAID
ficials as a potential act of Communications Commission to omit AT&T’s remaining speed tiers notched formances by overstating speeds.
domestic terrorism. A3 unflattering data on its DSL internet high marks. “It’s hard to trust the numbers when The Saudi government and
service from the report, which assesses The FCC’s nearly decade-old program, you know” of efforts to massage the re- its wealthiest citizens helped
 The U.S. conducted its
whether providers are delivering the Measuring Broadband America, is the sults, said veteran cable and telecom lift Aramco to Saudi Crown
first flight test of a new
speeds they advertise. AT&T also didn’t U.S. government’s gauge of whether consultant Mark Lubow. Prince Mohammed bin Salman’s
land-based ballistic missile
provide information the FCC needed to home internet-service providers are The stakes are high. Cable and coveted valuation target of $2
since the demise of a land-
validate speeds on those customers, the holding up their end of the bargain phone companies often tout the trillion—if only for a few hours.
mark nuclear treaty. A6
test officials confirmed. when they promise users certain speeds. scores while trying to sell packages Aramco’s share price on
 The House passed far- In the end, the DSL data was left out Companies wield tremendous influ- promising ever-faster speeds at higher Saudi Arabia’s Tadawul ex-
reaching legislation to lower of the report released late last year, to ence over the study and often employ prices, and they are increasingly lean- change jumped nearly 10% to
drug prices, but the bill has the chagrin of some agency officials. tactics to boost their scores, according Please turn to page A11 38.7 Saudi riyals ($10.32),
almost no chance of being briefly valuing the oil giant at
taken up by the Senate. A4 $2 trillion Thursday.
 Vale said experts con- Show Me the Money! Seriously, Where Is It? TOMORROW
The shares ended the day’s
trading at 36.8 riyals and a
cluded that drainage prob-
i i i valuation of $1.96 trillion. That
lems were largely to blame
was up from $1.7 trillion set
for January’s deadly mining-
dam collapse in Brazil. A10 Bankers search for the world’s missing cash; check the cushions during the company’s initial
public offering, the world’s
largest ever.
BY DAVID WINNING lars kept overseas. Socking Still, Prince Mohammed and
JOURNAL REPORT AND JAMES GLYNN those bills away provides his officials can point to the
CEO COUNCIL: some protection against eco- milestone as proof that
Chief Executives on Some Australians are bury- nomic turmoil, especially in Aramco, known officially as
the Hot Seat R1-10 ing it. The Swiss might be hid- countries with a record of in- Saudi Arabian Oil Co., was
ing it. The Germans are proba- stability in their own financial worth $2 trillion.
bly hoarding. The departed systems, the paper said. A number of wealthy Saudi
CONTENTS Opinion.............. A15-17 Banks are issuing more In Australia, the stock of families—some of whom had
Business News...... B3 Personal Finance.. B5
Crossword.............. A13 Sports....................... A14 notes than ever and yet they circulation hit about $1.7 tril- Australian bank notes on issue relatives caught up in the
Heard on Street. B12 Technology............... B4 seem to be disappearing off lion last year ($12.4 billion of relative to the size of the Crown Prince’s 2017 anticor-
Life & Arts...... A12-13 U.S. News............. A2-6 the face of the earth. Central it in $1 bills; $1.3 trillion of it economy is near the highest it ruption crackdown—as well as
Mansion.............. M1-12 Weather................... A13
Markets..................... B11 World News..... A7-10
banks don’t know where they in $100 bills) according to the has been in 50 years, said government funds were asked
have gone, or why, and are U.S. Federal Reserve. That is Philip Lowe, governor of Aus- to buy shares in the company
playing detective, trying to up from $1.2 trillion in 2013. tralia’s central bank. He to support a $2 trillion valua-
> crack the same mystery.
The puzzle is especially
A Federal Reserve econo-
mist, Ruth Judson, wrote that
showed off newly printed bank
notes at a recent event in Mel-
WSJ. tion after it was listed on the
Please turn to page A8
perplexing since societies and about 60% of all U.S. currency, bourne and estimated that MAGAZINE
companies are going cashless, and about 75% of $100 bills, about $2,000 in printed bills  Banks earned low fees on
s 2019 Dow Jones & Company, Inc.
given the boom in payments had left the country by the exists for every Australian. the rock Aramco’s IPO........................... B10
All Rights Reserved by cards and cellphone apps. end of 2016—for a total of “I, for one, don’t have any-  Saudis seek to ease tensions
The value of U.S. dollars in about $900 billion in U.S. dol- Please turn to page A10 with Iran....................................... A8
 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.

A2 | Friday, December 13, 2019 THE WALL STREET JOURNAL.

U.S. NEWS
Facebook to Set Up Independent Panel
BY JEFF HORWITZ cant investment in an organi- said Kate Klonick, an assistant company must publicly ad- additional delay: Facebook content “beyond just freedom
zation that doesn’t yet exist, law professor at St. John’s dress. says it no longer expects to of expression” and said the
Facebook Inc. will pay $130 but could take on responsibil- University whom Facebook al- The review board has been appoint board members before board should justify all of its
million to establish an inde- ity for some of the company’s lowed to attend some of the in the works since last year, early next year. decisions in terms of United
pendent board charged with thorniest decisions. In recent internal discussions surround- when Chief Executive Mark Alongside news of the Nations human-rights princi-
reviewing how the company years, Facebook has been be- ing the board. “It’s a lot of Zuckerberg wrote that despite board’s funding and timing, ples. It also said Facebook
moderates its content, provid- set by public controversies money, it’s a long time, and it his optimism about the com- Facebook also released a 60- should provide financial com-
ing long-term backing to its over how it handles misinfor- can’t disappear.” pany’s role in society, “without page report it commissioned pensation to people harmed by
experiment in better policing mation, hate speech and Sometimes dubbed “Face- sufficient safeguards, people from social-responsibility con- content “in cases when dam-
the platform. graphic content. book’s Supreme Court,” the will misuse these tools to in- sultant BSR. The document, age can be economically as-
The money, which Facebook Similar controversies have board will function like an ap- terfere in elections, spread which Facebook said it hoped sessed.”
described as an “initial com- occurred at Alphabet Inc ’s peals court, with five-person misinformation, and incite vio- would influence the board’s “We feel a responsibility
mitment,” is meant to cover YouTube and Twitter Inc. But panels adjudicating controver- lence.” future actions, is an apparent and have received feedback
six years of operations, includ- Facebook is the first of the so- sies arising from Facebook’s Before launching the board, victory for a coalition of hu- that the board should be
ing salaries for board mem- cial-media giants to give an in-house efforts to enforce its the company held listening man-rights organizations that grounded in human-rights
bers, office space and a staff outside organization poten- content standards. In addition sessions across the globe and lobbied Facebook about the principles, including the rights
including case managers, law- tially binding control over how to rendering binding decisions produced numerous reports on board. to freedom of expression, pri-
yers and human-resources some of them are addressed. on a case-by-case basis, the its plans and feedback. Thurs- The paper recommended vacy and remedy,” said Brent
personnel. “They’re putting their board can recommend policy day’s funding announcement that the board consider a wide Harris, a director of gover-
The money marks a signifi- money where their mouth is,” changes to Facebook that the was paired with news of an range of possible harms from nance at Facebook.

FTC Eyes antitrust regulators last sum-

mer.
“A preliminary injunction

Tech Giant may be necessary or desir-

able to prevent this merger
and maintain the status quo.”

Over Apps The slide deck’s authors in-

clude Mr. Wu and New York
University law professor
Scott Hemphill.
Continued from Page One Moving swiftly toward liti-
Concern that Facebook’s gation over interoperability
interoperability policies curb also could allow the FTC to
other services’ ability to take enforcement action
compete would underlie a po- ahead of the Justice Depart-
tential FTC action, these peo- ment. The two agencies share
ple said. Facebook has re- federal antitrust-enforcement
jected that recurring authority, and occasionally
complaint about its practices. are rivals. Both agencies are

JOSH EDELSON/AGENCE FRANCE-PRESSE/GETTY IMAGES

Officials also worry that known to be looking into pos-
some of Facebook’s plans to sible antitrust issues involv-
further integrate its own ma- ing Facebook.
jor products could make it An FTC antitrust lawsuit
harder to eventually split up against Facebook could be-
the company in an antitrust come federal enforcers’ open-
case, according to one of the ing salvo against big tech
people. companies as they look into
It isn’t known whether the similar concerns involving Al-
FTC will move forward with phabet Inc.’s Google unit as
an antitrust action against well as Amazon.com Inc.
Facebook or seek an injunc- State attorneys general also
tion over its interoperability are investigating Facebook
policies. If the agency takes and Google.
either step, its action could It isn’t known whether the FTC will move forward with an antitrust action against Facebook. Above, the Menlo Park, Calif., office. The FTC has been examin-
occur as soon as next month, ing Facebook’s acquisitions as
according to one person fa- a central part of its antitrust
miliar with the matter. Company Won’t petitors, including Alphabet Inc.’s collecting data on consumers with major advertisers in Octo- inquiry into the company,
It is also possible that the Google, have introduced new and delivering relevant ads to ber, Facebook stated its data seeking to determine whether
FTC could attempt to block Change Tracking tools to comply with the law’s them online. collection qualified for the law’s they were part of a campaign
certain Facebook interopera- mandate to stop collecting data In advance of the California exemption for sending data to to consume potential rivals
bility policies that critics say if a user opts out. law taking effect, Google has “service providers” and didn’t and head off competitive
have disadvantaged social- Facebook Inc. has told ad- Once the California Con- created a new protocol so sites count as a “sale” of data under threats, the Journal reported
media rivals in the past. vertisers it doesn’t need to sumer Privacy Act takes effect won’t send data to the com- the law, according to a person in August. Facebook has ac-
Facebook said in January make changes to its web-track- Jan. 1, websites with third-party pany if consumers have opted who listened to one of the calls. quired about 90 companies
that it was considering closer ing services to comply with Cal- trackers must add to their out. A Google spokeswoman Facebook also maintains over the last 15 years, accord-
interoperability of messaging ifornia’s new consumer-privacy home page a button that says said the protocol was intended that publishers can adjust set- ing to data compiled by S&P
across its main platforms. law, setting up a potential early “Do Not Sell My Personal Infor- to “help them [advertisers] as tings to block its web tracker, Global, including Instagram
But the company has said its clash over how the closely mation.” If a consumer clicks they work to comply with” the called pixel, from transmitting and WhatsApp.
recent plans to increase in- watched law will be enforced that button, the site is barred California law. the data of users who have In congressional testimony
teroperability are aimed at once it goes into effect. from transactions that send Facebook, however, has told opted out. earlier this year, Matt Per-
improving users’ experiences, Facebook is one of several data to hundreds of third par- advertisers that its trackers’ “Businesses already have ault, then director of public
particularly in light of recent companies in the $130 billion ties. data collection doesn’t consti- the ability to manage whether policy at Facebook, told a
controversies over privacy on U.S. digital-ad industry that Those transfers have under- tute “selling” data under the they send data and how they House antitrust subcommit-
Facebook, and not to freeze maintains that routine data pinned the digital-ad market for California law and that it there- send data to Facebook through tee that the company’s acqui-
out competitors or fend off transfers about consumers might more than a decade, and are a fore doesn’t believe it is re- pixel,” a Facebook spokes- sitions have fueled innova-
regulatory action. not fit the law’s definition of core component of Facebook’s quired to make changes. woman said in a statement. tion and brought together
“There are privacy and se- “selling” data. Other major com- and Google’s powerful tools for In private conference calls —Patience Haggin firms of complementary
curity advantages to interop- strengths
erability,” Facebook CEO Companies purchased by
Mark Zuckerberg wrote in a ularly among younger users, junction could hold strategic for the government, but if junction blocking the com- Facebook “have had more op-
Facebook post in March. and becoming more impor- benefits for the commission. they’ve got a good case it can pany’s plans for further in- portunity to innovate as part
“With the ability to mes- tant to Facebook’s business. “The advantages are that it be advantageous.” teroperability. of Facebook than they would
sage across our ser- The company hopes to update gets things moving, and sort Mr. Wu is among a group “One anticipated (and pos- have on their own—enhanc-
vices…you’d be able to send its platforms to address that of forces things to a judicial of Facebook critics who see sibly intended) effect of the ing users’ experience and re-
an encrypted message to trend. decision very quickly,” Mr. the company’s pursuit of integration is to make dives- sulting in more choice for
someone’s phone number in Columbia University law Wu said, “as opposed to hav- closer integration as conceal- titure more difficult,” read a more people overall, not
WhatsApp from Messenger.” professor Tim Wu, a former ing an antitrust investigation ing anticompetitive motives. slide in a deck reviewed by less,” Mr. Perault said.
Messaging networks are senior adviser for the FTC, going for five years…The bur- They have argued to the The Wall Street Journal that —Deepa Seetharaman
gaining in popularity, partic- said seeking a preliminary in- dens of proof can be higher FTC that it should seek an in- Facebook critics presented to contributed to this article.

U.S. WATCH CORRECTIONS 

KENTUCKY FCC
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Kentucky Gov. Andy Beshear Americans will be able to dial

signed an executive order 988 to reach a suicide prevention THE WALL STREET JOURNAL
Thursday that restores voting and mental-health crisis hotline
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THE WALL STREET JOURNAL. Friday, December 13, 2019 | A3

U.S. NEWS

Landowners Stall Plans for Border Wall

Texas farmers and funding for up to 110 miles of
new wall but has yet to obtain
Catholic diocese the land needed for most of it.
resist federal efforts While Texans are split
evenly on whether they sup-
to claim their land port or oppose Mr. Trump’s

FROM TOP: RYAN MICHALESKO/THE DALLAS MORNING NEWS/ASSOCIATED PRESS; DELCIA LOPEZ/THE MONITOR/ASSOCIATED PRESS
border wall, those in counties
BY ELIZABETH FINDELL along the border oppose it
54% to 40%, according to a
LAREDO, Texas—Nearly Quinnipiac survey of voters
three years into the Trump ad- this year.
ministration, almost no border In Laredo, developer Rich-
wall has been built in Texas. ard Hachar said he allowed
Local property owners ranging government surveyors on his
from ranchers to a Catholic di- land because he believes the
ocese and institutions have re- wall will help with security for
sisted federal efforts to claim his 300 riverfront lots where
their land. he plans to build homes. “We
The resistance in South have Border Patrol on my
Texas, where most land is pri- property every day,” he said.
vately owned, illustrates the “If we had a wall, I think it
challenges in building a wall, would be beneficial to my
even if funding is available. sales.”
U.S. Customs and Border Mary Furrh Gomez, whose
Protection has been sending commercial lots are mostly va-
letters and holding meetings cant, signed the papers be-
for two months asking about cause she figured “if the gov-
120 landowners with river- ernment decides to do
front property around Laredo, something, they’re going to do
to survey their land, the first it whether you agree with
step in building a wall on it. them or not,” she said.
Some around the South Texas But David Acevedo, who
city, where many can see the manages a 180-acre riverfront
Rio Grande and Mexico from ranch, said he is concerned a
their porches, said yes right barrier would make it difficult
away. But others are resisting, to access the Rio Grande river
setting up a potential conflict for irrigation and, when
with the government that pumps fail, for his cattle to
could drag on for years. drink.
About 200 miles southeast, At the more than 100-year- La Lomita chapel is near a levee where a wall was planned before the site, near Mission, Texas, was excluded from wall construction.
in the Rio Grande Valley, re- old Sacred Heart Children’s
fusals have led the govern- Home, the nuns in charge have The church is not going to and funding, but that working
ment to sue 46 landowners for declined to give their consent. give it to them.” in short segments doesn’t af-
the right to survey their prop- “The nuns are holding back for The Catholic Church is fect the overall cost.
erty in preparation for acquir- the time being,” due in part to highly influential in this pre- CBP typically pays $100 to
ing part of it, including farm-
ers, ranchers, businesses and
concerns over river access and
irrigation, said their spokes-
dominantly Hispanic area. The
counties around the Rio
survey land. If a landowner re-
fuses, the government must
Brighten
several facilities owned by a
Catholic diocese.
man, Mercurio Martinez.
Other Catholic institutions
Grande Valley and Laredo
range from 34% to 70% Catho-
sue in federal court to access
the property. When a survey is
her
Some cite ideological rea-
sons for resisting a wall on
have said a wall conflicts with
their faith, citing Pope Francis,
lic, among the highest such
rates in the nation, according
complete, the government of-
fers a price, which varies by
holidays.
their land. Others say it will who in a May television inter- to the U.S. Religion Census. property, to acquire the
split their properties in two view criticized “this new cul- The only new segments of needed land. If the landowner
and interfere with their busi- ture of defending territories wall in Texas since Mr. Trump declines to sell, the govern-
nesses or way of life. by building walls.” The Dio- took office are south of the ment must sue again to take it
Building a permanent bar- cese of Brownsville has re- city of Donna in the Rio through eminent domain.
rier along the nearly 2,000 fused federal efforts to survey Grande Valley, where three The Fifth Amendment to
miles of the southern border five parcels of land it owns, in- chunks a few dozen feet long the U.S. Constitution allows
was a signature promise of cluding a historic chapel, an rise above a levee. The stretch private property to be “taken
President Trump’s 2016 cam- oratory with a library and a of wall begun there is ex- for public use,” provided “just
paign. He and his supporters priest’s home, and three pieces pected to be 8 miles long and compensation” is paid. Its
believe a wall would help to of vacant land that might cost $167 million, according to power has been used to help
reduce illegal immigration. someday hold churches. CBP. Its construction timeline establish parks, clear land for
In the three years since, the “I don’t want to use the will depend on how long it highways and railways, and
government has built 80 miles church property to say that no takes the agency to get rights construct public buildings.
of border wall, according to matter how dire your life is, to all of the needed property. Efrén Olivares, an attorney
CBP, most of which has re- you cannot be received here,” CBP representatives said representing landowners in
placed existing fencing in Cali- said Brownsville Bishop Daniel that the agency chooses proj- five open eminent-domain
fornia. In the Rio Grande Val- Flores. “The government is go- ects based on factors including cases, said courts tend to de- Celestial Pendant
ley, the government has ing to have to take the land. real-estate availability, priority fer to national security argu- with Lapis Inlay and Diamonds
ments in such cases. Judges in 14K Yellow or White Gold
may adjust the amount of from $899
compensation landowners get,
he said. Judges deciding emi- Chain included
nent-domain cases typically Matching Earrings available
try to determine the prop-
erty’s fair-market value, which
can be tricky if a parcel is
unique or sales of comparable
properties aren’t available.
Some plaintiffs will simply
fight to keep their land “until OAHU • MAUI • KAUAI • BIG ISLAND OF HAWAII
the day they die” Mr. Olivares
BOSTON • CHICAGO • DALLAS • DENVER • LAS VEGAS
said, in an effort to run out
MIAMI • NEW YORK • ORLANDO • PHILADELPHIA
the clock on a Trump presi- PLEASANTON • PORTLAND • ROSEVILLE • SAN DIEGO
dency and hope his successor SAN FRANCISCO • SAN JOSE • SEATTLE • WASHINGTON, D.C.
changes course.
NaHoku.com • 1-866-296-9374
The only way Texas land-
owners who don’t want a wall
on their property have avoided FREE FEDEX SHIPPING ON ALL ORDERS OF $200 OR MORE
a court fight is through con-
gressional intervention. La Lo-
mita Mission, which sits on
the banks of the Rio Grande
and is part of the Diocese of
Brownsville, was specifically
excluded from wall construc-
tion along with several South
Texas wildlife refuges in bor-
der-security legislation last
Auxiliary Bishop Mario Aviles at a border-wall section in Hidalgo, Texas, in June 2018. year.

Attack Eyed as Act of Domestic Terror

BY JOSEPH DE AVILA dicated that the assailants, identified a number of social- The Black Hebrew Israelite
who died Tuesday following media accounts that might movement, known for its
Officials are investigating an hourslong shootout with have been used by the shoot- members often dressed in
the shootout in a kosher gro- police, held views that re- ers, which investigators are elaborate clothing and yelling
cery in Jersey City, N.J., as a flected hatred of Jews and po- trying to confirm, he said. at passersby, has been visible
potential act of domestic ter- lice officers, said New Jersey Investigators also continued on street corners in major cit-
rorism, and recovered several Attorney General Gurbir Gre- to examine why the suspects ies for years. The movement,
hundred shell casings along wal. killed Jersey City Police Detec- which dates to the 1800s, is
with a cache of rifles and “The evidence points to- tive Joseph Seals at a ceme- entirely unconnected to main-
handguns from the scene, they wards acts of hate,” Mr. Gre- tery before heading to the stream Judaism.
said. wal said. “I can confirm that store, officials said. Its followers generally be-
Law-enforcement officials “It now appears from law lieve the 12 tribes of Israel, re-
said the assailants, David An- enforcement that the events ferred to in the Old Testa-
derson and Francine Graham, that terrorized Jersey City on ment, are ethnic groups,
were armed with a 12-gauge
‘The evidence Tuesday were fueled by hate,” which don’t include white peo-
shotgun, two .9mm handguns, points towards acts Gov. Phil Murphy, a Democrat, ple. Black people, Native
a .22 caliber handgun outfitted said in a statement. “The mur- Americans and Latinos—not
with a homemade silencer and
of hate,’ a New der of innocent civilians be- Jews—are God’s chosen peo-
an AR-15-style weapon, a rifle Jersey official says. cause of their religious beliefs, ple, they say. Members of the
that has been used in many and the murder of a police of- group often shout anti-Semitic
mass shootings. Graham legally ficer for the simple reason insults at people in Jewish
purchased the shotgun and the that he was a police officer, neighborhoods.
.22 caliber handgun in Ohio in we are investigating this mat- must be the wake-up call to Gregory Ehrie, special
spring 2018, officials said at a ter as potential acts of domes- those who fail to see or ac- agent in charge of the Federal
press conference Thursday. tic terrorism, fueled both by knowledge the rising tide of Bureau of Investigation’s New-
Investigators were still de- anti-Semitism and anti-law- hate here in New Jersey, and ark office, said they haven’t
termining why the shooters enforcement beliefs.” around the nation.” identified any conspirators
chose to attack the Jersey City Mr. Grewal confirmed that a The shooters expressed in- and believe the shooters acted
Kosher Supermarket, where note was recovered from the terest in the Black Hebrew Is- alone. “But we will continue to
three people were killed, in- stolen U-Haul van used by the raelites, but investigators ha- monitor for any threat to any
cluding two Hasidic Jews. But shooters, but declined to dis- ven’t definitively found formal community,” Mr. Ehrie said.
recent interviews with wit- cuss what it said. Law-en- links to the group or any other —Ian Lovett
nesses and other evidence in- forcement officials have also organization, Mr. Grewal said. contributed to this article.
 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.

A4 | Friday, December 13, 2019 P W L C 10 11 12 H T G K R F A M 1 2 3 4 5 6 7 8 9 O I X X ***** THE WALL STREET JOURNAL.

U.S. NEWS

Panel Sets Vote on Impeachment

BY SIOBHAN HUGHES
Spending
Agreement
AND NATALIE ANDREWS

WASHINGTON—House Judi-
Reached
ciary Committee Chairman
Jerrold Nadler halted a mara-
thon drafting session on two
By Top
articles of impeachment
against President Trump
Thursday night, calling for the
Lawmakers
session to resume Friday BY ANDREW DUEHREN
morning with votes. AND ANDREW RESTUCCIA
Republicans and Democrats
had spent all day debating WASHINGTON—Top Demo-
abuse-of-power and obstruc- cratic and Republican lawmak-
tion-of-Congress charges ers said they reached a tenta-
against the president, based tive agreement on federal
on allegations that he improp- government spending, giving
erly pressured Ukraine to an- Congress and the White House
nounce probes that would ben- about a week to approve the
efit him politically and then particulars before funding runs
tried to block Congress from out after Dec. 20.
investigating. “There’s a meeting of the
MATT MCCLAIN/PRESS POOL

The committee had been ex- minds,” House Appropriations

pected to vote on the two arti- Chairwoman Nita Lowey (D.,
cles Thursday, but after 14 N.Y.) said on Thursday.
hours of debate that dragged on President Trump and House
past 11 p.m., Mr. Nadler (D., Republicans hadn’t yet signed
N.Y.) called a recess until 10 off on the accord, aides said.
a.m. Friday, to the consterna- But Mr. Trump “likes what he
tion of the panel’s Republicans. Democrats on the Judiciary Committee argued President Trump abused his power by pressuring Ukraine to investigate Joe Biden. sees,” a senior administration
“They want the prime-time official said. The White House
hit,” Rep. Doug Collins (R., In the committee debate highest crime that one who impeachment, House Speaker Trump’s actions. was still reviewing the details
Colo.), the ranking member of Thursday, Republicans chal- holds public office could com- Nancy Pelosi (D., Calif.) said Mr. Trump would be only the of the agreement Thursday
the committee, complained. lenged Democrats’ allegation mit? A crime against our Con- Thursday she wouldn’t be third president to be impeached night.
If the panel votes to approve related to Mr. Trump’s pressure stitution?” twisting arms to get votes to by the House, after Andrew The agreement follows a
the two articles on Friday, as on Ukraine, saying that an Mr. Trump has called the pass the articles. Democrats Johnson and Bill Clinton. Nei- meeting on Thursday between
expected, they would go to the abuse of power charge could be impeachment inquiry a hoax have a 36-seat margin in the ther was convicted in the Sen- House Speaker Nancy Pelosi
full House for a vote next week. used for policy disagreements and denied wrongdoing. On House, and can afford a limited ate. Richard Nixon resigned be- (D., Calif.), Treasury Secretary
If the House votes to impeach rather than for misconduct. Thursday morning, he number of defections. fore his expected impeachment. Steven Mnuchin and the lead-
on either of the counts, the “The president isn’t even ac- retweeted criticisms of Demo- Rep. Lizzie Fletcher, a Texas Democrats say that the un- ers of the House and Senate
matter would then move to the cused of committing a crime,” crats and their efforts. Democrat who flipped a GOP derlying facts aren’t contested, appropriations committees.
Republican-controlled Senate, said Rep. Steve Chabot (R., As debate continued, Demo- district last year, was uncom- citing in part a transcript of Mr. Leaving that meeting, Mr.
where the tally is expected to Ohio). crats projected they will have mitted and said she planned to Trump’s July 25 call with Mnuchin said that negotiators
fall short of the two-thirds vote Democrats said that im- the votes to impeach Mr. rewatch the hearings before Ukraine’s president in which he were focusing on a small list of
required to remove Mr. Trump peachable offenses cover be- Trump, a politically wrenching making a decision. asked his counterpart to “do us remaining issues and that he
from office. haviors that might not violate decision that has put pressure “I’m going to go home and a favor, though” and to “look planned to update Mr. Trump
“There’s no chance the presi- criminal statutes, an interpreta- on many Democrats who were I’m going to talk to folks in my into” Democrat Joe Biden. on the talks later Thursday.
dent is going to be removed tion shared by many constitu- elected from districts that also district,” she said. Republicans say that Demo- The agreement covers
from office,” Senate Majority tional scholars. backed Mr. Trump. Republicans have remained crats are reading too much into nearly $1.4 trillion in discre-
Leader Mitch McConnell (R., “There are no crimes With some Democrats de- united against impeachment, the call, and that the witness tionary government spending
Ky.) told Sean Hannity of Fox here?” said Rep. Eric Swalwell clining to say whether they even among the few GOP law- testimony on which Democrats across a dozen bills for the rest
News on Thursday night. (D., Calif.). “How about the would support the articles of makers who have faulted Mr. rely is secondhand. of the fiscal year, which ends
Sept. 30, 2020. Negotiators still
need to agree on the language

House Passes Bill to Reduce Drug Prices

of legislation, which is ex-
pected to be released on Mon-
day, leaving the two sides the
weekend to iron out any final
BY STEPHANIE ARMOUR controls. President Trump has has to choose between paying issues.
threatened to veto the plan. for prescription drugs or put- The agreement, if finalized,
WASHINGTON—The House Some Republicans and ting food on the table,” said would be a compromise on the
passed far-reaching legislation pharmaceutical lobbying Rep. Max Rose (D., N.Y.). contentious issue of a proposed
to lower drug prices, bolster- groups have said the plan Lawmakers have struggled border wall between the U.S.
ing Democrats’ health-care would discourage investment to unify around legislation to and Mexico.
message in the 2020 election in research on new cures and lower prescription drug prices Under the deal, Congress
campaign, although the bill treatments. Pharmaceutical even though both parties are would approve roughly the
has almost no chance to be Research and Manufacturers eager to claim progress before same amount of funding it did
taken up by the Republican- of America, the industry’s pri- the 2020 election. In a Kaiser
GEORGE FREY/GETTY IMAGES

controlled Senate. mary lobbying group. has said Family Foundation poll in Sep-
The passage of the package it would siphon $1 trillion or tember, 70% of the public said
championed by House Speaker more from biopharmaceutical lowering prescription drug
The president ‘likes
Nancy Pelosi would empower innovation over 10 years, lead- costs should be a priority for what he sees’ in the
the federal government to ne- ing to fewer drugs. Congress in the coming year.
gotiate prices for certain Mrs. Pelosi pushed her leg- Mr. Trump has retreated
deal that includes
costly drugs in Medicare and islation through despite initial from his 2016 campaign pledge funding for a wall.
the private market. The legis- objections from progressive The House bill, which is unlikely to be taken up in the Senate, would to let Medicare negotiate for
lation—which passed 230-192, members who said the bill cap out-of-pocket prescription-drug costs for people on Medicare. drug prices. The White House
with 228 Democrats voting in wasn’t aggressive enough and has backed away from support-
support, joined by two Repub- didn’t open enough drugs in House Minority Leader highlights a lack of action by ing Mrs. Pelosi’s bill after ini- last fiscal year for building a
licans—would limit out-of- Medicare to negotiation. Kevin McCarthy (R., Calif.) Republicans and Mr. Trump. tially negotiating with her on it. barrier—$1.38 billion—while
pocket prescription-drug costs Mrs. Pelosi cheered the pas- called the bill “political pos- Democrats are likely to use the Republicans say the House leaving the president’s ability
for people in Medicare and ex- sage, saying, “Prescription drug turing,” adding, “It won’t be- bill’s passage to spotlight work legislation marked a purposeful to redirect government funds
pand the program to cover prices are out of control,” add- come law. It will be another they are doing beyond im- effort to undermine support for untouched, according to four of
dental, vision and hearing. ing that pharmaceutical compa- talking point.” peachment. a bipartisan Senate Finance the people familiar with the ne-
The bill won’t pass before nies are reaping record profits Democrats say the House “This bill does not cater to a Committee drug-pricing bill gotiations.
next year’s election because while 58 million Americans passage proves the party can base, this bill does not cater to pushed by GOP Sen. Chuck President Trump had asked
Republicans largely object to couldn’t afford to fill a pre- deliver on campaign pledges to big pharma, but this bill does Grassley of Iowa and Democrat for $8.6 billion for the wall in
measures they are calling price scription they needed last year. bring down drug prices, and cater to that family tonight that Sen. Ron Wyden of Oregon. his budget request, and Demo-
crats had sought to block new
funding for the wall and curb

IF SHOPPING FROM HOME IS YOUR Warren Chides 2020 Rivals as the president’s ability to redes-
ignate money to build it.
Mr. Trump has siphoned
money from the Pentagon, in-
STYLE, WE THINK YOU’RE GOING
TO LIKE THIS... She Lays Out Economic Vision cluding $3.6 billion for military
construction projects, to build
a wall, though that effort has
BY JOSHUA JAMERSON in Manchester, N.H., billed as rally Americans around big been repeatedly challenged in
an economic address, accused ideas to solve the problems court.
Democratic presidential rivals—without naming them— that have festered in Washing- The funding agreement
candidate Elizabeth Warren of harboring the “naive hope” ton for too long.” wouldn’t restore funding for
drew a sharper contrast with that the GOP would accept lib- Mr. Biden didn’t immedi- the projects that lost money to
her 2020 rivals, offering thinly eral priorities if Democrats ately have a comment on Ms. wall construction, a key Demo-
veiled swipes at Joe Biden and “adopt Republican critiques of Warren’s speech. cratic demand, according to
Pete Buttigieg in an address progressive policies.” Ms. Warren’s sharp words three of the people.
that previewed how she would Some of Ms. Warren’s back- underscore her new reality af- Deep disagreements about
challenge President Trump’s ers have accused Mr. Buttigieg, ter a spate of good polls and paying for the border wall have
economic policies in a general the mayor of South Bend, Ind., growing fundraising over the racked the spending process
election. of using arguments pushed by summer: She is jockeying for for years, holding up hundreds
The Massachusetts senator Republicans in opposition to position as momentum in Iowa of billions in other funding and
has slowly pivoted from her ap- her plan to make higher educa- shifts in Mr. Buttigieg’s favor. leading to the longest govern-
proach of holding fire against tion free for all Americans. He Mr. Biden, the former vice pres- ment shutdown in U.S. history,
the other candidates as her po- says Democrats shouldn’t ex- ident, has remained at the top which ended earlier this year.
sition has slipped in recent tend free tuition to the chil- in most national polls during Congress has temporarily ex-
You’re busy, you have a lot going on, you don’t have
polls. Ahead of the Feb. 3 Iowa dren of wealthy people. the primary race so far. tended funding twice in the last
time or energy for constant chiro, PT, massage, caucuses, she is also looking to She also indirectly belittled Ms. Warren for months had few months as the two sides
acupuncture, etc. to deal with your chronic back bolster her argument that a Mr. Biden’s insistence that, if declined to take on her rivals haggled over the border wall, a
pain. Save time and money while achieving the populist economic vision and elected president, he could directly. “I’m not here today to central priority for Mr. Trump.
health & healing you need at home. Svago Zero robust anticorruption platform persuade Republicans to get criticize other Democrats,” Ms. If the tentative deal moves
Gravity recliners are a luxury FDA-registered health is the best Democratic message on board with his more mod- Warren told reporters in mid- forward, lawmakers will still
device that can help realign vertebrae, relieve to go toe-to-toe with Mr. Trump erate policy agenda. November when asked to re- face a tight schedule to pass
muscle tension, relax and heal the body all in the in 2020, according to an aide. “Unlike some candidates for spond to criticism from Mr. Bi- each of the dozen annual
comfort of your home. Zero gravity balances and Ms. Warren, during remarks the Democratic nomination, den. “I’m here to talk about spending bills before the last
aligns, heat and air cell massage relax and heal, the I’m not counting on Republican why I’m running for president.” stopgap measure expires after
finest leather and hand carved wood just make it politicians having an epiphany She started to ease from that Dec. 20—and many lawmakers
look good. and suddenly supporting the position after seeing an open- plan to head home for the holi-
Crafted in gold & platinum
kinds of tax increases on the ing to go after Mr. Buttigieg’s days. House members said they
rich or big-business account- practice of funding his cam- aim to bring packages of the
– HOLIDAY SALE – Order by
ability they have opposed un- paign in part through closed- bills to the floor on Tuesday,
12/20 for
Save up to $300 + Christmas! der Democratic presidents for door fundraisers, which allies giving the Senate just days to
free extended warranty* a generation,” she said. said tied into her overall theme decide on the legislation before
Lis Smith, a spokeswoman of criticizing the ways the the end of next week.
*Newton Chair only
for Mr. Buttigieg, said: “Sen. wealthy influence Washington. The agreement still could
Warren’s idea of how to defeat Adam Green, a progressive face resistance both from Dem-
Donald Trump is to tell people activist who is backing Ms. ocrats resistant to supporting
who don’t support her that Warren, cited an adage to ex- any wall funding and Republi-
SVAGORELIEF.COM 844-MY-SVAGO Your Anniversary Immortalized they are unwelcome in the plain Ms. Warren’s new strat- cans who hoped to see more
In Roman Numerals! fight.…Pete will be a president egy: “If you want to attract a money spent on border secu-
JOHN-CHRISTIAN.COM 888.646.6466 who will heal our divides and crowd, pick a fight.” rity.
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THE WALL STREET JOURNAL. Friday, December 13, 2019 | A5

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

A6 | Friday, December 13, 2019 * *** THE WALL STREET JOURNAL.

U.S. NEWS

U.S. Tests Missile After

Withdrawing From Treaty

U.S. DEPARTMENT OF DEFENSE/AGENCE FRANCE-PRESSE/GETTY IMAGES

BY MICHAEL R. GORDON totype of the missile was fired The new land-based
from Vandenberg Air Force weapon, Mr. Colby said, would
WASHINGTON—The U.S. Base in California and flew present the Chinese military
conducted its first flight test more than 300 miles before with more U.S. systems to
of a new land-based ballistic landing in the ocean, the Pen- worry about and would also be
missile since the demise of the tagon said. more cost-effective for the
1987 treaty banning interme- “Data collected and lessons U.S. than air- and sea-based
diate-range nuclear forces. learned from this test will in- variants that are launched
The American military has form the Department of De- from expensive planes and
long eyed the development of fense’s development of future ships. While Asian nations
such mid-range missiles— intermediate-range capabili- might be reluctant to allow
which would be conventionally ties,” the Pentagon said. the U.S. to base the missiles
armed with no nuclear war- The test was made possible on their territory, Mr. Colby
heads—as a way to counter in August when the U.S. with- said the allies’ thinking would
China. drew from the 1987 treaty, change if Beijing’s armed
“Once we develop interme- which banned the U.S. and Rus- forces are perceived as a
diate-range missiles and if my sia from testing or deploying growing threat.
commanders require them, land-based missiles—conven- Arms-control groups counter The Pentagon released this image of a ballistic missile being launched from Vandenberg Air Force Base.
then we will work closely and tionally armed or nuclear- that the development of a new
consult closely with our allies armed—with a range of 300 to conventionally armed system turn, could put U.S. and Chi- sion of the Navy’s Tomahawk some within range of Western
in Europe, Asia and elsewhere 3,400 miles, alleging that Mos- that could quickly strike deep nese military forces on more cruise missile. That cruise Europe.
with regards to any possible cow had long violated the ac- into China, Russia and North of a hair trigger in a crisis, he missile was launched from San Russia has denied the long-
deployments,” Defense Secre- cord. Korea would be destabilizing. argued. Nicolas Island and struck its standing allegation, made by
tary Mark Esper told reporters Elbridge Colby, who led the “For that reason and oth- Guam, a Pacific island that target after flying more than Obama and Trump administra-
on Thursday after the test, team that helped develop the ers, it seems highly unlikely is home to major U.S. military 300 miles. tion officials, that this missile
without stating a time frame. Pentagon’s military strategy to that U.S. allies in Europe or bases, is about 2,000 miles Russia is well ahead of the violated the 1987 treaty. After
A senior Defense official counter China and Russia, said Asia would ever agree to host south-southeast of North Ko- U.S. in the development of in- the U.S. said it was leaving the
said in March that it could the new missile would be an such a system,” said Kingston rea and 1,800 miles southeast termediate-range land-based treaty because of Russia’s al-
take five years to fully develop important addition to the U.S. Reif of the Arms Control Asso- of China. missiles, according to U.S. in- leged violations, Moscow also
and field the new missile, as- non-nuclear arsenal. ciation. “We could deploy such The new ballistic missile is telligence. pulled out of the accord.
suming the weapon’s eventual “It is an important step for- a missile in Guam, but its sur- the second weapon the Penta- In January, Western offi- Russian President Vladimir
production and deployment ward in strengthening our con- vivability wouldn’t be assured gon has tested that had previ- cials said that Russia had al- Putin has said that his country
wins congressional approval. ventional posture, especially in there,” Mr. Reif added, refer- ously been banned by the 1987 ready produced nearly 100 of won’t deploy intermediate-
The test took place at 8:30 Asia,” said Mr. Colby, who left ring to China’s ability to target treaty. In August, it flight- its 9M729 land-based cruise range land-based missiles un-
a.m. Pacific time when a pro- the Pentagon last year. the Pacific island. That, in tested a ground-launched ver- missiles and had deployed less the U.S. does.

Trump Sullivan
Agrees to Confirmed
Trade Deal As Envoy
Continued from Page One
bury said.
To Russia
In what Mr. Pillsbury de- BY COURTNEY MCBRIDE
scribed as a “goodwill ges-
ture,” the U.S. plans to an- The Senate confirmed John
nounce some tariff rate cuts Sullivan to serve as the next
Friday. “The president is up- U.S. ambassador to Russia, fill-
beat and enthusiastic about ing an important diplomatic
his breakthrough,” according post amid a challenging period
to Mr. Pillsbury, a China in relations between Washing-
scholar who advises the ton and Moscow.
Trump administration. Mr. Sullivan, now deputy
The president has stressed secretary of state, was con-
TANNEN MAURY/EPA/SHUTTERSTOCK

that a so-called phase one firmed in a 70-22 vote on

deal—which also includes Thursday. The approval cleared
measures to improve intellec- the way for the Senate to take
tual property protection, open up the nomination of Stephen
the Chinese financial-services Biegun, the special representa-
market and prevent currency tive for North Korea, to suc-
manipulation—is expected to ceed Mr. Sullivan in the State
lead to a phase two deal. That Department’s No. 2 role.
agreement would tackle more A State Department official
difficult problems, including The deal calls for China to buy $50 billion in agricultural and other goods in exchange for lower tariff rates, a presidential adviser said. said Mr. Sullivan would remain
forced-technology transfer, in his current role until Mr.
subsidies, and the behavior of with U.S. and Mexican offi- Biegun has been confirmed as
Chinese state-owned firms. China Will Do More While the conference wasn’t U.S. trade tensions escalating, cials on a revised North his successor.
The Chinese Embassy convened to address the trade Beijing has been gradually eas- American trade pact expected As deputy secretary, Mr.
didn’t respond to a request to To Ensure Growth war, the continuing trade dis- ing up on those efforts and in- to win congressional ratifica- Sullivan led a pair of dialogues
comment. pute with the U.S. loomed heav- creasingly prioritizing raw tion in coming months. between the U.S. and Russia on
The limited trade pact ily over the proceedings. The growth. The phase one deal with counterterrorism and strategic
could help revive U.S. agricul- BEIJING—Chinese leaders U.S. was scheduled to add 15% In 2019 alone, Beijing has China, if completed, would security. He previously served
tural exports to China. Such pledged stepped-up efforts to tariffs on roughly $165 billion of cut taxes, pushed banks to lend cover only a small portion of as general counsel and deputy
sales had collapsed over the boost slowing growth, as they Chinese products Sunday, but more and instructed local au- the U.S. complaints against secretary at the Commerce De-
past year and a half, with try to manage a downshift in a President Trump has now thorities to front-load bond issu- China’s trade practices, leav- partment during the adminis-
China retaliating against U.S. maturing economy and fallout agreed to a limited trade agree- ances in order to fund big-ticket ing largely untouched such tration of President George W.
tariffs by halting farm pur- from the trade war with the U.S. ment with China that would infrastructure projects. In order fundamental issues as subsi- Bush and held senior positions
chases. An economic blueprint, ap- cancel those levies and roll back to counter U.S. tariffs, China’s dies and Chinese pressure on at the Defense Department and
U.S. farm exports fell from proved Thursday by President Xi existing tariff rates. central bank has let its currency, American firms to share tech- the Justice Department.
as much as $25 billion in re- Jinping and other Chinese lead- The Chinese leadership’s tilt the yuan, depreciate. nology.
cent years to below $7 billion ers at the end of an annual toward an emphasis on eco- Even so, the rate of eco- Many in the U.S. business
in the 12 months through closed-door conclave, promised nomic growth appears to be a nomic expansion has roughly community remain skeptical
May, according to Commerce more fiscal and monetary mea- recognition that Chinese policy halved during the past decade that discussions on phase two
The new U.S.
Department data. sures with the aim of support- makers’ recent focus on reining to 6% in the past quarter, the or phase three deals will bear ambassador to
Farm exports to China have ing everything from consump- in debt may have gone too far. bottom end of Beijing’s target fruit.
begun to climb in recent tion to infrastructure investment In recent years, Beijing has at- range for 2019. Slowing growth In recent months, the U.S.
Russia is now deputy
months as the two sides and employment in the coming tempted to strike a balance be- has also weighed on the coun- has been collecting about $5 secretary of state.
reached a truce, but remain year—all to ensure that the tween deleveraging and stimu- try’s smaller banks, sparking billion a month from the tar-
nearly 60% lower than their growth rate will be kept stable. lating growth—a policy that concerns of contagion, while pri- iffs on China, which are paid
pre-trade war peak. The plan is aimed at coun- threatens to exacerbate the vate businesses are defaulting by U.S. importers.
Mr. Trump declared two tering a protracted slowdown debt situation. on a record amount of bond If all the tariff rates were Along with other State De-
months ago the two countries that has seen the economy In large part because of its payments. cut in half, it would save partment officials, Mr. Sullivan
had reached a framework for slow to its weakest pace in de- stimulus efforts during the past Chinese leaders also signaled American companies about had been drawn into the im-
a limited pact to halt the cades, and represents a continu- decade, debt levels in China their stepped-up attention on $2.5 billion a month, or $30 peachment proceedings
trade war and allow negotia- ation of efforts this year to sup- reached a peak of more than the housing sector, with pledges billion a year, in tariff pay- against President Trump over
tion on possible future port the economy. 270% of its $13.6 trillion econ- to stabilize land prices, property ments. his dealings with Ukraine. He
phases. “The downward pressure on omy last year, according to prices and people’s expectations. Gregory Daco, chief U.S. told members of the Senate
Yet efforts to finalize terms the economy has increased” UBS—a level that worried many The official readout mentioned economist at Oxford Econom- Foreign Relations Committee
proved elusive until Thursday, with this year seeing “a clear in- policy makers and prompted the need for “stability” many ics, estimates that cutting the during an Oct. 30 confirmation
just days before new tariffs crease in risks and challenges at them to intensify their cam- more times than the statement tariffs by half would boost hearing that he was aware of
targeting iPhones, toys and home and abroad,” said a state- paign of tamping down asset from last year’s economic con- U.S. economic growth by the “campaign” by the presi-
other consumer goods were ment by the state-run Xinhua bubbles and financial risks. Now, ference did. about 0.2 percentage point dent’s personal attorney, Rudy
set to take effect. News Agency. with the economy softening and —Chao Deng next year, but cautioned that Giuliani, to remove Marie Yo-
Trade groups hailed Thurs- uncertainty would likely lin- vanovitch, then the U.S. am-
day’s progress as a welcome ger. bassador to Ukraine.
respite. Importers, retailers Composite advanced 63.27 commitments from the Chi- tration. “Importantly, we can’t re- Ms. Yovanovitch, a career
and other American firms had points, or 0.7%, to 8717.32. nese government to enact “The president will get verse the damage already foreign-service officer, previ-
worried more duties—essen- Some raised concerns that substantive, enforceable, and hammered on a deal no mat- done by the two-year long ously testified in the House in-
tially U.S. taxes charged at rolling back tariff rates could permanent structural reform ter what—the real test is if he trade war, nor omit the dense quiry that Mr. Sullivan had in-
the border—would have the take away U.S. bargaining will jeopardize American jobs sticks to it when the heat fog of uncertainty that will formed her that the president
effect of raising prices or clout for future negotiations and long-term economic pros- rises.” continue to restrain business had lost confidence in her.
hurting sales. with China on later phases of perity.” The White House had no and consumer activity in Mr. Sullivan also told sena-
“We welcome the news the deal. In the past, emerging deals immediate comment on the 2020,” Mr. Daco said. tors he was aware of the tem-
that a U.S.-China phase one Sen. Marco Rubio (R., Fla.), with China have collapsed, in- emerging agreement Most economists estimate porary suspension of security
deal is imminent,” said Myron an outspoken China critic, cluding a nearly completed “Getting VERY close to a that the tariffs had taken a assistance to Ukraine, but
Brilliant, executive vice presi- said via Twitter that the pact in May whose demise BIG DEAL with China,” Presi- toll on the U.S., contributing wasn’t aware of an alleged link
dent and head of interna- “White House should consider triggered a sharp escalation dent Trump wrote in a tweet to U.S. economic growth slow- between that aid and a request
tional affairs at the U.S. the risk that a near-term deal in tariffs from Mr. Trump and Thursday morning: “They ing to about 2% in recent by Mr. Trump for Ukraine to
Chamber of Commerce. “It with China would give away a reduction in offers to make want it and so do we!” quarters, from about 3% last investigate former Vice Presi-
will bring stability to the U.S.- the tariff leverage needed for economic overhauls in China. If the two countries con- year. dent Joe Biden and his son
China relationship, but make a broader agreement on the Trade experts cautioned that firm and sign the limited The International Monetary Hunter.
no mistake about it: There is issues that matter the most any final deal should include pact, it will show the Trump Fund, for example, has esti- Mr. Trump tapped Mr. Sulli-
still more work ahead and such as subsidies to domestic a complete text backed by administration is eager to fol- mated the tariffs would lower van for the ambassador post in
more problems to be solved.” firms, forced tech transfers & Washington and Beijing. low through on promises to U.S. growth by 0.6%. The toll October following the resigna-
The Dow Jones Industrial blocking U.S. firms access to “Without public text of the notch new deals with trading was even sharper on China, tion of Jon Huntsman.
Average rose 220.75 points, or key sectors.” agreement, there is no true partners on the eve of his with growth estimated to In the separate confirmation
0.8%, to 28132.05 on Thurs- Senate Democratic leader deal,” said Derek Scissors, a 2020 election year and possi- drop 2%. proceedings for Mr. Biegun,
day. The S&P 500 gained Chuck Schumer of New York trade expert at the American ble impeachment. —Alex Leary, Tim Puko lawmakers queried him on his
26.94 points, or 0.9%, to led a letter from Democrats Enterprise Institute who has On Tuesday, House Demo- and Andrew Restuccia independence and willingness
3168.57, while the Nasdaq saying that “failure to secure advised the Trump adminis- crats said they reached a deal contributed to this article. to defend career diplomats.
 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.

THE WALL STREET JOURNAL. * * * * * * Friday, December 13, 2019 | A7

WORLD NEWS
A Boost for Brexit—but More Work Ahead
Britain will be able to
set own deals and Scotland Chooses
rules but lose say in A Separate Path
European decisions
LONDON—Boris Johnson’s
BY STEPHEN FIDLER big victory was almost entirely
AND LAURENCE NORMAN due to voters in England who
like his promise to deliver
LONDON—A victory for Bo- Brexit. In Scotland, the election
ris Johnson in Thursday’s gen- exit poll predicted a very dif-
eral election signals the end of ferent outcome: a landslide for
the beginning of Britain’s jour- the Scottish National Party,
ney out of the European with 55 of the country’s 59
Union. parliamentary districts.
After almost four years of That would be a gain of 20
national melodrama over seats compared with the 2017
Brexit, Mr. Johnson has now election for the party that fa-
secured the parliamentary ma- vors splitting Scotland off
jority he needs for his deal with from the rest of the U.K. The
the EU, allowing the U.K. to scale of that victory for SNP

PAUL HARDING/BBC/AGENCE FRANCE-PRESSE/GETTY IMAGES

leave the bloc on Jan. 31. leader Nicola Sturgeon would
That step will settle the di- mean that as the U.K. leaves
vorce, but it won’t lay to rest the European Union, Scottish
the uncertainty around Brexit. independence will be back on
Once Britain leaves the EU, ne- the British political menu.
gotiations will start over a In a referendum on Scot-
complex and divisive question: tish independence in 2014,
What should be the U.K.’s fu- Scotland voted to stay in the
ture relationship with the huge U.K. Ms. Sturgeon has argued
trading bloc on its doorstep? for a second referendum, but
The debate will echo the that decision is for the British
political arguments of the past government to decide. Mr.
three years over Brexit and is Johnson has ruled this out.
likely to mark an enduring di- —Max Colchester
vide in British politics. and Stephen Fidler
Should the country accept Exit-poll results were projected on the British Broadcasting Corp.’s London office Thursday as the ballots began to be counted.
EU norms on issues such as
regulation of labor, products by the consequences of the U.K. will be able to start nego- relationship with the bloc to regulate the economy. U.K., the EU will insist on in-
and the environment? Should Brexit decision. On Jan. 31, tiating trade deals and have not disrupt current trading One example: a possible Brit- creased border checks on Brit-
it deviate from them in an ef- doors in Brussels will finally more leeway to set its own patterns, it will have to accept ish free-trade agreement with ish exports to ensure nonstan-
fort to become a swashbuck- close to British diplomats and economic regulation. But many EU rules and regulations the U.S. Any wide-ranging ac- dard U.S. goods don’t enter
ling, globally focused economic officials. British lawmakers will those freedoms will be shaped over which it will no longer cord with the U.S. would have the EU market.
power with less exacting stan- leave the European Parliament. by the nature of the U.K.’s fu- have a say. to include significantly greater On the other hand, if the U.K.
dards—as some pro-Brexit After years inside the room as ture relationship with the EU. If it wants a more distant access for U.S. farm products to sticks to EU standards to ease
campaigners want and many decisions are made, the U.K. For the U.K., there will be a relationship, it will disrupt the British markets. trade flows with what currently
anti-Brexit voters fear? will be outside, seeking to in- trade-off that will replicate the current cross-border com- But many U.S. farm prod- is its largest trading partner, it
The machinery of the British fluence them. divisions over the Brexit deal. merce—but will get to make ucts don’t meet EU standards. won’t be able to import many
state will be absorbed for years Other doors could open. the If it wants a close economic its own choices about how to If they are pouring into the U.S. agricultural products.

In U.K. as in U.S.,
Voters’ Ties Shift
CHRIS RATCLIFFE/BLOOMBERG NEWS
BY MAX COLCHESTER tion as the party of the country-
AND JAMES HOOKWAY club elite, now appeal to more
white, working-class voters.
LONDON—Boris Johnson’s The changes were vividly
victory in Thursday’s British seen in the 2016 presidential
elections was propelled by a election, when blue-collar vot-
striking shift in voter alle- ers in industrial states that
giances that mirrors a realign- had voted Democratic in re-
ment seen in the U.S. and else- cent years instead backed
where in the West. Donald Trump. That helped Voters lined up in London Thursday. Below, Labour Party leader Jeremy Corbyn and Brexit Party candidate Yosef David awaited results.
Mr. Johnson’s Conservative flip Michigan, Wisconsin and
Party, long identified with Brit-
ain’s upper classes, captured a
swath of blue-collar districts
Pennsylvania to the Republi-
cans in the Electoral College.
In continental Europe, the
Johnson
that for decades voted for left-
leaning Labour politicians who
positioned themselves as
shift has taken a different
form, with voters abandoning
historic centrist parties and
Leads Party
champions of workers.
The key driver of the
change in the U.K.: Brexit. The
flocking to upstarts. In some
places—as with the votes for
Brexit and for Mr. Trump—this
To Big Win
2016 referendum exposed has been motivated by con-
stark divides in British society cerns about immigration. Continued from Page One
between older, Brexit-backing Support for established par- get Brexit done.”
working-class voters, who ties in France—the Socialists The main opposition Labour
have lost out in globalization, and the conservative Republi- Party was on track to score its
and urban, white-collar work- cans—has collapsed, driving worst election performance
ers, who largely voted to stay voters to Marine Le Pen’s far- since 1935, with a projected
in the trade bloc. right National Rally or to the tally of 201 seats.
HANNAH MCKAY/REUTERS

“It appears that the class- fledgling centrist party of Presi- The outcome appeared to
party link is going into re- dent Emmanuel Macron. In Ger- sink the leadership of Labour’s
verse,” said Vernon Bogdanor, many, traditional centrist par- leader Jeremy Corbyn, who
professor of government at ties have lost ground to smaller campaigned on the party’s
King’s College London. parties, including the national- most left-wing manifesto in
During the campaign Mr. ist Alternative for Germany. decades with proposals for
Johnson, a product of Britain’s For Britain, the picture has large increases in government
elite private schools, played up been shaped by the 2016 refer- spending and nationalization Projected Results vorce deal with the EU negoti-
the patriotism of Brexit and endum vote to leave the Euro- of key industries. Early on Fri- ated by the government—while
toned down talk of free mar- pean Union. The decision to day he said he wouldn’t run in Seats per party New Parliament (projected) also making sure the U.K. didn’t
kets. He promised to pour gov- break with the U.K.’s biggest the next election but would re- Departing Parliament Majority 6 leave the bloc without a deal.
ernment funds into left-behind trading partner cut across main at the helm of his party Mr. Johnson’s EU deal cov-
parts of the country. party lines. Roughly a third of during a period of “reflection Conservative
357 ers divorce issues needed to
In one of the first declared Labour supporters voted to and discussion” as it transi- 298 unwind the U.K.’s 45-year
results, Mr. Johnson’s party quit the EU, according to the tions to a new leader. 201 membership in the EU, includ-
took the Blyth Valley district, independent British Election For Mr. Johnson the result Labour ing the rights of their respec-
243
Study. Meanwhile, 61% of Con- vindicates a bold transforma- tive citizens, a settlement of
servatives voted for Brexit. tion of his Conservative Party 55 the debts the U.K. owes the EU
Scottish National Party
Britons now affiliate them- into a political machine that 35 and an arrangement to pre-
Boris Johnson’s selves more with a stance on could appeal to voters span- 13 vent a border arising on the
Liberal Democrat
campaign aimed to Brexit than with a particular ning from the landed gentry to 20 island of Ireland.
political party. the working class. But its ratification won’t
sweep up blue-collar Mr. Johnson’s election cam- He promised extra govern- Other
24
end the Brexit odyssey: The
54
supporters, and did. paign aimed to sweep up blue- ment spending to reverse next challenge will be to nego-
collar supporters in places like some of the effects of a decade Note: Projections based on incomplete vote count as of 10:30 p.m. EST tiate future ties between the
Dudley North, a district in the of public belt-tightening since Source: BBC U.K. and the EU.
English Midlands that has the financial crash. But his tri- Mr. Johnson’s government
a former coal-mining area in voted in only Labour lawmak- umph came largely on the a leading Labour lawmaker. turnaround for Mr. Johnson, will have to unmoor an econ-
Northern England that had ers since it was created in a back of a simple message that “But they haven’t.” He said the who in the space of five months omy tightly integrated to the
voted Labour since 1950. redistricting two decades ago. a vote for the Conservatives results, if correct, were “ex- renegotiated a Brexit divorce trade bloc while minimizing
Given that many in the Con- Before Brexit, Dudley North would “Get Brexit Done.” tremely disappointing.” deal with the EU and rallied his the immediate damage to Brit-
servatives view quitting the was considered part of the La- That Brexit appeal flipped The picture was different in divided party and Britain’s ex- ain’s business interests. Only
EU as an opportunity to cut bour Party’s “Red Wall,” a districts long considered La- Scotland, where the pro-inde- asperated voters behind it. after future ties with the EU
red tape and strike free-trade chain of districts stretching bour bastions. For its first gain pendence Scottish National A majority of the projected are settled will it be possible
deals around the globe, how- across the center of the coun- of the evening, Mr. Johnson’s Party were projected to win all size would allow him to to delve into negotiations to
ever, it is unclear whether Mr. try. But with much of the in- party took Blyth Valley, a for- but four of the country’s 59 quickly push the withdrawal tighten trade ties with other
Johnson will deliver the pro- dustry now gone, Dudley has mer coal-mining district in Eng- seats, a gain of 20 districts. deal he negotiated with the EU nations, including the U.S.
tection from globalization struggled to keep up with land’s northeast, a seat that had That outcome likely puts Scot- through Parliament, allowing Once the U.K. leaves the EU,
sought by many of these new wealthier parts of the country been held by Labour since 1950. tish independence back on the Britain to formally leave the it will enter a transition pe-
voters for his party. closer to London. In 2016, the Later, his party won Leigh, a political agenda. bloc on Jan. 31. It would also riod in which trade and other
The emerging voting pat- district voted 71% for Britain Labour district that was rav- The leader of the pro-EU give him greater leeway in relations don’t change.
tern in Britain mirrors the po- to leave the EU in what some aged by spending cuts under Liberal Democratic Party, Jo Parliament to steer future Mr. Johnson has repeatedly
litical shift seen elsewhere in people there described as a previous Conservative govern- Swinson, lost her seat to the trade talks with the EU in any said he wants this transition
the U.S. and Europe. roll of the dice to provide the ments. Meanwhile, the Conser- Scottish Nationalists. direction he chooses. period to finish at the end of
The U.S. Democratic Party, town a better future. vatives managed to hold on to The British pound rose Since the 2016 Brexit refer- 2020, when a trade deal he
once the party of the working Edward Tate, 46, voted for seats in areas of the country, sharply late Thursday as the endum, Britain’s political sys- hopes to negotiate over the
class, now represents more Brexit in 2016 and on Thurs- such as Kensington in London, first exit poll was released, tem was pushed to the breaking course of next year would kick
communities where incomes day for the Conservatives that backed staying in the EU. surging 2.5% against the dollar point as traditional party alle- in. After that, he has said he
are relatively high and college Party. “It’s the only way to get “Brexit has dominated, we and reaching its highest level giances melted over the issue wants the U.K. to be free to di-
degrees plentiful. The Republi- what I voted for three years thought other issues could cut since May 2018. of Brexit. Lawmakers repeat- verge significantly from EU
cans, who once had the reputa- back,” he said. through,” said John McDonnell, The vote marks a remarkable edly refused to endorse a di- rules and regulations.
 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.

A8 | Friday, December 13, 2019 * *** THE WALL STREET JOURNAL.

WORLD NEWS

Saudis Seek to Ease Tensions With Iran

Oil-facilities attack was Salman, who is trying to re-
make the kingdom’s economy.
‘game-changer’ for The initial public offer of
Riyadh; stance aims to Saudi Aramco, which started
trading Wednesday, is a cata-
protect economy lyst for raising funds to seed
real estate, tourism and tech-
Saudi Arabia is quietly try- nology projects in the king-
ing to mend fences with Iran dom. But following the Sep-
and other regional foes as offi- tember attack, concerns have
cials in the kingdom have grown over the security of
grown more worried about the Aramco’s assets.
risks conflict poses to its oil- A second Saudi official said
dependent economy. the kingdom was compelled to
engage with Iran as it prepared
By Benoit Faucon in for Aramco’s listing. The initial
Paris, Summer Said in public offering from the oil gi-
Dubai and Warren P. ant was valued last week at
Strobel in Washington $1.7 trillion. Aramco’s shares
rose on Thursday, briefly hit-

HAMAD MOHAMMED/REUTERS
Riyadh’s interest in better ting Prince Mohammed’s valua-
relations with regional rivals tion target of $2 trillion, before
comes as Saudi officials ques- ending the day’s trading just
tion how much backing it has shy of that mark.
from the U.S. and other allies. The prospect of a wider con-
Saudi calculations changed af- flict with Iran jeopardizes Saudi
ter a cruise-missile and drone oil exports and risks scaring
strike—blamed on Tehran— away overseas investors the
temporarily disabled a large The damaged site of a Saudi oil facility in Abqaiq as pictured in September. Riyadh’s outreach effort is aimed at ensuring the continued flow of kingdom needs for fresh capital,
portion of the country’s crude oil exports from the Gulf and the winding down of fighting in Yemen at a key time for Prince Salman. Below, graves in the Yemeni capital, San’a. cutting-edge technology and
production this year. Washing- management know-how.
ton didn’t hit back at Iran after Other players in the region,
the attack, but it sent troops to including the United Arab

BANDAR AL-JALOUD/SAUDI ROYAL PALACE/A FP/GETTY IMAGES

strengthen Saudi defenses. Emirates, are skeptical of Ri-
“The Sept. 14 attack was a yadh’s outreach to Iran. U.S. of-
game-changer,” one Saudi offi- ficials have also publicly
cial said. warned that Iran might be
Representatives of Saudi Ara- planning a new attack in the re-
bia and Iran have directly ex- gion.
changed messages in recent Saudi Arabia doesn’t “trust
YAHYA ARHAB/EPA/SHUTTERSTOCK

months and also communicated the Iranians,” said a Saudi of-

through intermediaries in Oman, ficial, but Riyadh hopes it “can
Kuwait and Pakistan, according at least come to an agreement
to Saudi, European and U.S. offi- to stop possible attacks.”
cials. The main focus of the Tehran, hard hit by the
communications, these officials Trump administration’s cam-
say, has been easing tensions be- paign of economic sanctions, has
tween Saudi Arabia and Iran. expressed an interest in detente.
According to Iran’s ambas- Despite years of enmity, Iranian
sador to Paris, Bahram officials have previously raised
Ghasemi, and other officials, blamed on an unnamed for- to minimize potential clashes, Washington and the Royal pecially Washington, where the hope that Saudi Arabia could
Tehran has floated a peace eign government. The inci- a Western official said. Court in Riyadh didn’t respond lawmakers from both parties act as an intermediary in an eco-
plan to the Saudis that includes dents have driven up the cost Houthi forces initiated the to requests to comment. want to see Riyadh end the war nomic-relief package—using its
a mutual pledge of nonaggres- of shipping. push for talks in September Iran’s delegation to the U.N. in Yemen and hold people ac- special relationship with Wash-
sion and cooperation, aimed at Riyadh has also engaged in with a proposal for a unilat- likewise didn’t respond to a countable for the killing of ington to end sanctions rather
securing oil exports following a secret talks with Iranian- eral cease-fire; the Saudis re- request to comment. Saudi writer Jamal Khashoggi. than encourage them.
spate of tanker attacks. backed Houthi rebels it has sponded with a partial cease- “Iran doesn’t want the con- Riyadh is facing renewed While Iranian moderates
Mine explosions struck been fighting in Yemen for fire of their own. tinuation of tensions. We are questions from U.S. lawmakers have backed rapprochement
Saudi, Emirati and Japanese years, according to Arab and “Realpolitik has set in,” one seeking peace,” Mr. Ghasemi about its reliability as an ally af- with regional powers, conser-
oil tankers this year near the U.S. officials. The conflict senior U.S. official said, with said in an Oct. 30 interview. He ter a Saudi Air Force trainee vatives see a robust security
strategic Strait of Hormuz. there has created what the the Saudis recognizing that couldn’t be reached to comment killed three American sailors last role in the region as a prerequi-
Those attacks, which the U.S. United Nations has described “they’ve just got to pare down on the status of any direct con- week at a Florida military base. site for maintaining the Islamic
blamed on Iran, were followed as the world’s worst humani- on the challenges they have on sultations with Saudi Arabia. The Saudi outreach also Republic’s clout beyond Iran.
by explosions in October on an tarian crisis. The two sides multiple fronts.” Support has eroded for Saudi comes at a pivotal time for —Dion Nissenbaum in Beirut
Iranian tanker that Tehran now have a hotline in an effort The Saudi Embassy in Arabia in key world capitals, es- Crown Prince Mohammed bin contributed to this article.

Aramco ture losses if the stock falls,

according to a person familiar
with the matter.
IPO, therefore they will con-
tinue to be buyers of Aramco
in the short term,” said John

Hits Value Buyers have been dominated

by large institutional investors,
the person said, but the small
Gebeily, head of asset manage-
ment in Riyadh for Audi Capi-
tal, the investment arm of a

Target pool on offer by individual in-

vestors helps to explain the
relative lack of trading volume.
Lebanese bank.
Thursday saw significantly
more trading than the first day.
Some Saudi and Middle Investors traded 417 million
Continued from Page One Eastern equity funds received shares at a value of $4.2 billion
domestic exchange, according less than the number of shares on the second day of trading,

The Wall Street to senior Saudi advisers famil-

iar with the IPO planning.
Some of the families were
approached by Aramco execu-
they bid for in the IPO, accord-
ing to Saudi analysts. Active eq-
uity managers now have to buy
on the public market to weight
versus 31.6 million shares at
$300 million in value.
The value of the company
has been a sticking point for

Journal would like tives who told them it was

their patriotic duty to invest
in the kingdom’s national oil
company. Others were ap-
their portfolios to match
Aramco’s roughly 10% weight-
ing on the Saudi exchange, they
said. The alternative for portfo-
global investors for the four
years since the prince an-
nounced an intention to list the
firm and was one of the main

to thank the sponsors proached by advisers from the

royal court.
The country’s sovereign-
lio managers would be to re-
main underweight and risk af-
reasons the share sale stalled.
Gulf investors are typically
less concerned about security
wealth fund has poured bil-

of the 2019 CEO

and governance issues at
lions of dollars into the mar- Aramco than their U.S., Asian
ket to help support prices
The IPO drew $106 and European peers, and par-
during times of political tur- billion in orders ticipated in the IPO in higher

Council Washington, moil, The Wall Street Journal

has reported.
Even at $1.7 trillion, interna-
tional investors didn’t buy into
from institutional
investors in total.
numbers.
Dubai-based investment
bank Arqaam Capital initiated
coverage on Aramco on

D.C. Meeting for the listing in great numbers,

with many saying the price
was too high compared with
peers such as Exxon Mobil
fecting their performance
compared with peers.
Wednesday, setting a target
price of 39.2 riyals a share,
implying a valuation of $2.1
trillion.

their generous Corp. and Chevron Corp. The

Saudi government’s control
over the energy producer at
In total, the IPO drew $106
billion in orders from institu-
tional investors.
It said Aramco’s commit-
ment to pay a dividend of $75
billion and its low production

support. the expense of minority share-

holders partly drove that view,
U.S. and European institutional
investors said. That risk
Aramco and its underwrit-
ers allocated Saudi companies,
most of which are owned by
wealthy individuals and the
costs justified a premium valu-
ation.
How the stock trades over
the coming months will help
showed itself in the govern- government, the highest pro- determine whether Aramco is-
ment’s heavy-handed push for portion of shares in the listing, sues more shares domestically
local institutional investors to making up 37.5% on shares sold or lists the oil company on an
bid up Aramco’s shares toward to institutional buyers. Asset international exchange—a goal
a valuation that investors out- managers were handed 26.3% the Saudi government previ-
side the region had rejected. of the two billion shares avail- ously set. An overseas listing
Spokespeople for Aramco, able to professional buyers. could attract more interna-
the Saudi government and the “What you have now is that tional investors.
Tadawul didn’t respond to re- institutional investors have —Ben Dummett
quests for comment. been underallocated in the contributed to this article.
“It is all about reaching this
magic number,” said a senior
Saudi adviser familiar with the
process. “I would expect the
frenzy and this kind of activi-
ties to phase out in a few
weeks, when the whole IPO
success PR campaign dies.”
CEO Council is by invitation. The shares increased 10% on
Learn more at CEOCouncil.wsj.com/inquire their market debut Wednesday,
hitting an upward limit set by
the exchange. The increase in
AMR NABIL/ASSOCIATED PRESS

value is partly a function of the

outsize impact that the com-
pany’s tiny 1.5% share float has
on its valuation.
In the first two days of trad-
© 2019 DowJones & Co. Inc. All rights reserved. 3DJ8137
ing, individual investors domi-
nated the selling group, decid-
ing to pocket an assured profit
rather than risk potential fu- Aramco’s share price jumped nearly 10% on Thursday.
 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.

THE WALL STREET JOURNAL. * * * * * Friday, December 13, 2019 | A9

WORLD NEWS WORLD WATCH

ECB Keeps Rates

Steady as Lagarde
Makes Her Debut
BY TOM FAIRLESS terest rates steady on Wednes-
day after lowering rates at its
FRANKFURT—The European three previous meetings to
Central Bank joined the Federal guard the U.S. economy against
Reserve in pausing a global the effects of trade tensions.
wave of monetary easing, re- Fed officials indicated they are
acting to early signs that the comfortable with leaving mon-
world economy is stabilizing as etary policy on hold through
international tensions and un- next year while keeping an eye
certainties begin to fade. on those risks.
Around the world, central Ms. Lagarde, who took over
banks have started signaling a as ECB president from Mario

TOUFIK DOUDOU/ASSOCIATED PRESS

possible economic turning Draghi on Nov. 1, has indicated
point after moving aggres- she wants to seek greater con-
sively this year to support sensus among the region’s
global growth that is headed central bankers.
for its weakest year since the A lawyer and former politi-
financial crisis. cian with no previous central-
The shift comes as the banking experience, Ms.
world’s two biggest economies, Lagarde is something of an
the U.S. and China, were on the unknown quantity for analysts,
verge of a limited trade deal who parsed her words and de- Algerian protesters jammed the streets Thursday in the capital Algiers in opposition to the presidential elections. The pro-democracy
that could help reduce uncer- livery style for clues as to how demonstrators say the military-led interim government is positioning favored politicians to continue the armed forces’ grip on power.
tainty weighing on global busi- she might steer policy during
nesses. Authorities in China her eight-year term. EU ALGERIA RUSSIA ARMENIA
have taken steps to support the “Markets have to get used
economy, while a recession in to her, and she needs to get
Leaders Pledge to Cut Demonstrations Several Are Hurt in U.S. Senate Passes
Germany’s large manufacturing used to the way markets inter- Emissions to Net Zero Disrupt Election Aircraft Carrier Fire Genocide Resolution
sector appears to be bottoming pret and react to central-bank
out. statements,” said Florian European Union leaders agreed Protests disrupted the first A fire broke out aboard Russia’s The Senate approved a resolu-
The ECB left its key interest Hense, an economist with Be- to cut the bloc’s greenhouse- gas election in Algeria since its long- only aircraft carrier, injuring nearly a tion recognizing the Armenian
rate on hold at minus 0.5% on renberg Bank in London. emissions to net zero by 2050, time ruler was forced to resign dozen people and threatening to genocide, delivering a rebuke to
Thursday, after unveiling a Ms. Lagarde stressed that coupling efforts to fight climate this year, with demonstrators re- put the vessel out of commission, Turkey despite White House re-
sweeping package of interest- investors shouldn’t over-inter- change with a massive economic jecting the vote as a guise for the latest in a string of disasters sistance to the measure.
rate cuts and bond purchases pret her early appearances. transition poised to test EU unity. continuing the country’s military- that have raised questions about The resolution passed Thurs-
in September that split the She sought to escape analysts’ The agreement, already once led regime with a new public face. the state of the navy and President day after Sen. Robert Menendez
bank’s rate-setting committee. characterization of central postponed, came early Friday af- The election for a new presi- Vladimir Putin’s plans to modernize (D., N.J.) brought it to the Senate
Christine Lagarde, the ECB’s bankers as either leaning to- ter contentious negotiations. In a dent to succeed ailing 82-year-old the armed forces. floor and no other lawmaker ob-
new president, told reporters at ward lower or higher interest sign of the challenges ahead, Po- autocrat Abdelaziz Bouteflika has The massive blaze erupted early jected. Republican senators previ-
her inaugural news conference rates. “I’m neither dove nor land refused to implement the fueled further demonstrations Thursday aboard the Admiral Kuz- ously had blocked the measure
that she detected “some initial hawk and my ambition is to be decision before June, seeking fi- among those who fear Algeria’s netsov as it was undergoing major three times at the behest of the
signs of stabilization” in euro- this owl that is often associ- nancial assurances to safeguard interim government is positioning repairs and quickly spread to much White House, which has faced a
zone growth, and “somewhat ated with a little bit of wis- its economy, which relies on coal favored politicians to extend the of the 1,001-foot vessel. The fire lobbying effort by Turkey. Turkey
less pronounced” risks to the dom,” she said. for 80% of its energy needs. armed forces’ grip on power. was the Kuznetsov’s third accident has for years pressured the U.S.
economy. The export-oriented She indicated that she European leaders clinched the Calls for a boycott of the elec- aboard the ship in just more than not to use the word “genocide” to
region has been particularly af- backed Mr. Draghi’s recent de- deal a day after the bloc’s execu- tion are extending the nation’s three years. About 400 workers, describe the slaughter of about
fected by tensions surrounding cisions to use controversial tive, the European Commission, yearlong political crisis and ampli- and an unknown number of offi- 1.5 million people in the early
international trade and a slow- policy tools such as negative unveiled its “green deal” proposal fying the turmoil across the Mid- cers, were on the ship when the 20th century.
down in China. interest rates and large-scale to achieve climate neutrality by dle East and North Africa. Police fire started, authorities said. The resolution passed the
Analysts said the ECB bond purchases. But she also 2050. The comprehensive pack- in the port city of Bejaia fired tear The Admiral Kuznetsov has House with bipartisan support in
looked unlikely to cut interest said she would assess the use- age to slash the bloc’s emissions gas at protesters who stormed a been central to Russia’s efforts to October. At the time, the Turkish
rates again anytime soon. “We fulness of those tools as part includes €100 billion ($111 billion) polling station, hurled ballot boxes project power beyond its borders. foreign ministry condemned the
foresee the ECB to stay on of a wide ranging review of in funding to help coal-reliant to the ground and sent a cloud of The ship was used in a dis- measure as lacking historical or
hold throughout 2020,” said the ECB’s strategy, which will countries shift to cleaner energy ballots flying. The government play of military might off the legal basis. Many historians rec-
Frederik Ducrozet, an econo- begin in January and conclude and new taxes to punish polluting has called off presidential elec- coast of Syria in late 2016, and ognize the Ottoman Empire’s
mist with Pictet Wealth Man- by the end of 2020. industries, among other mea- tions twice since Mr. Bouteflika more than 100 sorties were flown treatment of Armenians from
agement in Geneva. —Paul Hannon in London sures. resigned. from the ship. 1915 to 1923 as a genocide.
The Federal Reserve held in- contributed to this article. —Emre Pecker —Jared Malsin —Thomas Grove —Andrew Restuccia

DISASTERS DON’ T
PL AN AHEAD

YO U C AN
DON’T WAIT. COMMUNICATE.
Talk to your loved ones about how you are
going to be ready in an emergency.

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

A10 | Friday, December 13, 2019 THE WALL STREET JOURNAL.

WORLD NEWS

Drainage Blamed for Dam Disaster Germany

To Probe
Experts hired by Vale meant they burst out with
say water buildup
inside structure led to
great force. The slope of the
dam collapsed in less than 10
seconds. About three-quarters
Inspector
collapse that killed 270
of the dam’s contents rushed
out over the next five minutes,
obliterating the cafeteria as
Vale Used
BY SAMANTHA PEARSON well as nearby homes and a BY PATRICIA KOWSMANN
AND LUCIANA MAGALHAES small guesthouse.
This occurred via a process Prosecutors in Germany have
SÃO PAULO—Vale SA said called liquefaction, a trick of opened a criminal probe into
experts hired by the mining physics that makes solids be- the role of German safety in-
company concluded that have like a liquid, the report spector TÜV SÜD over the Jan-
drainage problems were said. Liquefaction was also uary collapse of a mine-waste
largely to blame for the col- responsible for the collapse dam in Brazil that killed 270

VICTOR MORIYAMA/BLOOMBERG NEWS

lapse of its dam in January in 2015 of another mine- people.
that killed 270 people in Bra- waste dam jointly owned by A spokeswoman for the Mu-
zil. Vale in the nearby town of nich prosecutor’s office de-
The original design of the Mariana. scribed the investigation as pre-
dam and the way it was built The experts ruled out seis- liminary, but declined to
up over decades allowed dan- mic activity or detonations in comment further on its scope.
gerous amounts of water to neighboring mines as the trig- In Germany, a preliminary in-
accumulate inside the struc- ger, saying that the dam was vestigation is a prerequisite for
ture, meaning it was only a under so much internal stress criminal charges being filed.
matter of time before it gave that it likely underwent a Such probes can also end with-
way, according to the report The failure of the mine-waste dam is the subject of criminal investigations in Brazil and Germany. gradual deformation and col- out charges if prosecutors de-
released by Vale on Thursday. lapsed. cide there isn’t sufficient evi-
The mine-waste dam’s fail- Brazilian miner that Vale ac- dried-out mining waste is Adding to the dam’s prob- In September, Brazilian fed- dence to bring a case to court.
ure, one of the world’s deadli- quired in 2001, its design pre- gradually piled up over time to lems was the stiff and heavy eral police accused 13 mostly It is the first investigation of
est in decades, is the subject vented correct drainage at its form the wall of the structure. nature of its contents, the so- lower-level employees of Vale TÜV SÜD in Germany following
of criminal investigations in base, according to the panel of Vale built the last layer in called tailings. The tailings and TÜV SÜD of covering up the deadly dam collapse at a
both Brazil and Germany, four international engineering 2013, taking the dam to a contained a particularly high structural dangers at the dam. mine owned by Brazilian giant
home to TÜV SÜD, the dam’s experts hired by Vale’s law- height of 280 feet, and level of iron ore, making the A spokeswoman for Vale Vale SA. TÜV SÜD, a privately
Munich-based safety inspector. yers. The dam was also ini- stopped depositing mining structure more brittle, accord- said the company wasn’t held company, carries out certi-
The report was commis- tially constructed with a par- waste there in 2016. ing to the experts from univer- aware of any imminent or crit- fication and safety auditing
sioned as a technical study, to ticularly steep slope, leaving The experts said the mecha- sities in Canada, Australia and ical risks at the structure be- work across a range of indus-
spell out specific engineering the structure more unstable as nisms introduced at later the U.S. fore it collapsed. She said the tries, including telecommunica-
shortfalls and causes of the subsequent layers of the dam stages of its construction were When the dam finally rup- company was also carrying tions, railways and health care.
collapse. It wasn’t designed to were added over the next 37 insufficient to solve the struc- tured at 12:28 p.m. on Jan. out a detailed technical inves- TÜV SÜD’s Brazil unit au-
affix blame or responsibility, years, they said. ture’s drainage problem, which 25—as many workers were tigation into all its upstream dited and certified the dam as
the report’s drafters said. The dam was built via the was exacerbated by intense having lunch in the mine’s caf- dams, and would share the stable twice last year. The Wall
When the dam was built in so-called upstream method, rainfall during Brazil’s wet eteria lower down the valley— findings of Thursday’s report Street Journal subsequently re-
1976 by Ferteco Mineração, a the cheapest design, whereby season at the end of last year. the weight of the tailings with the authorities. ported that employees of TÜV
SÜD, as well as Vale, knew for
months of dangerous conditions

Wreckage Found of Antarctica-Bound Chilean Plane at the dam. TÜV SÜD employ-
ees expressed worry about los-
ing contracts with Vale, a major
client, the Journal reported.
BY JEFFREY T. LEWIS bris about halfway across the from this accident,” Gen. Ar- had caused the crash, though maintenance mission for Chil- Until now, only Brazilian au-
stormy waters of the Drake turo Merino, head of Chile’s local media reported that one ean installations. thorities were known to be
Wreckage and human re- Passage that separates South air force, told reporters in of the passengers mentioned With the assistance of sat- probing TÜV SÜD’s role. In Sep-
mains from a Chilean military America from Antarctica. Punta Arenas, the remote electrical problems in a voice ellites, aircraft and ships from tember, Brazilian police accused
aircraft that disappeared on a The components of a wing town from where the plane message sent to a relative be- Chile, Argentina, Uruguay, Bra- six employees of the firm of
flight to Antarctica with 38 and personal belongings, in- had taken off Monday. “This fore taking off from Punta zil, the U.S. and Britain had covering up structural dangers
people aboard have been dis- cluding a backpack, were tremendous pain is felt not Arenas. “That is part of the in- been scouring the sea in at the dam during safety audits.
covered in the turbulent wa- found bobbing in the water. only by the families, it’s also a vestigation,” Gen. Merino said. search of the plane. A spokesman for TÜV SÜD
ters off South America’s The debris was found in an pain that is felt by the whole Chile’s air force lost contact “We want to thank the said it “cannot comment on the
southern tip, Chile’s govern- area where the depth of the country.” with the plane Monday eve- friendly countries that have ongoing investigations by the
ment said Thursday. ocean reaches more than 2.5 At the Cerrillos air force ning about an hour and a half helped us in the search be- prosecutors.” He said that the
Planes and ships from six miles. base near Santiago, Chile’s after it left Punta Arenas. The cause their collaboration has company is “still very much in-
countries have been conduct- “The conditions of the de- president, Sebastián Piñera, plane was en route to an air- been very important, very terested in clarifying the facts
ing a search for two days for bris found from the plane met with the grieving relatives strip on King George Island off generous and very timely,” of the dam breach” and that it
the plane. A Brazilian polar re- make it practically impossible of those aboard. the coast of the Antarctic Pen- Chilean Defense Minister Al- is cooperating with authorities
search vessel first spotted de- that there are any survivors It remained unclear what insula for a resupply and berto Espina said. in Brazil and Germany.

FROM PAGE ONE

World’s
Bank Notes
Vanish
ANDREAS ARNOLD/DPA/GETTY IMAGES

Continued from Page One

where near that amount” on
hand, Mr. Lowe said.
Following the money trail
can often mean encountering a
motley cast of characters that
wouldn’t look out of place in a
detective novel. Dollar bills are
often vital grease for criminal
gangs and tax cheats. A German federal bank official inspects euros.
Cash is also popular with
collectors who worry about a notes to replace those that had The biggest use of cash is as
future collapse of the financial been damaged by fires. a store of wealth “in safes, un-
system. It didn’t work. der beds and at the back of
If central banks don’t know “Our estimates are only reli- cupboards, both here in Austra-
how much cash is out there, able if our assumptions are rea- lia and elsewhere around the
they could print too much cur- sonable, which we believe is world,” Mr. Lowe, the RBA gov-
rency and risk inflation. probably not the case,” la- ernor, said.
Construction workers re- mented analysts at Australia’s Officials at the Swiss Na-
cently dug up an estimated central bank. tional Bank ran with another
$140,000 buried in packages at They found wealthier peo- theory: hoarded bank notes
a site on Australia’s Gold Coast. ple are less likely to suffer a should wear out less because
In September, a court in Ger- fire because they live in cities they aren’t being used for ev-
many ruled on a case brought near emergency services and eryday transactions.
by a man who stuffed more have working fire alarms. That Demand for high-denomina-
than 500,000 euros in a faulty skewed results toward rural tion bank notes can rise when
boiler only to see it incinerated farmhouses. interest rates are low, or when
when a friend made a fix on a The European Central Bank people feel distrustful of the
cold day while he was on vaca- tried asking the public for help. banking system.

Achieve Your tion. The man sued his friend

for the value of the lost bank
notes plus interest. He lost.
A German man
SNB officials found that
hoarding of Swiss francs
jumped around the year 2000,

Literary Ambitions
“People hide their money ev- likely motivated by fear of the
erywhere,” said Sven Bertel- kept more than Y2K bug infecting computer
mann, head of the Bundes-
bank’s National Analysis Centre
half a million euros systems, the September 11 ter-
rorist attacks and introduction
in Mainz, Germany. Sometimes in his broken boiler. of the euro.
bank notes are buried in the Then the financial crisis en-
garden, where they start de- couraged people to stash even
composing, or hidden in attics. more.
Every month, WSJ members are “It happens again and again “Everyone says that they are Around a third of New Zea-
exclusively entitled to a complimentary that people keep money in an not hoarding cash but the land’s new bank notes headed
envelope and then they shred it money is clearly somewhere,” overseas in 2017. That hap-
e-book with WSJ+. by mistake,” Mr. Bertelmann said Henk Esselink, head of the pened around the time that
said. “We pick up the bank issue and circulation section in tourism overtook dairy as the
notes with tweezers and then the ECB’s currency manage- country’s main export money-
start to put them together, like ment division. spinner, leading officials to
a jigsaw puzzle.” Australia’s central bank says speculate on the role played by
WSJPLUS.COM/FREEBOOK The Bundesbank thinks more
than 150 billion euros are being
its best guess is that only
around a quarter of the bank
currency exchanges.
The bank identified the
hoarded in Germany. notes in circulation are used for whereabouts of around 25% of
The Reserve Bank of Austra- everyday transactions. Up to New Zealand’s cash.
lia’s Note Issue Department de- 8% of cash is used in the “Our sense is that we’re in
cided to take an unusual ap- shadow economy—tax avoid- the same boat as a lot of other
proach: could fire-damaged ance or illegal payments—while central banks out there,” said
bank notes help to determine as much as 10% could have Christian Hawkesby, assistant
how much money is being been lost. That is $7.6 billion governor at the RBNZ. “We
hoarded? Analysts devised an Australian dollars ($5.2 billion) can’t fully explain why holdings
© 2019 Dow Jones & Co., Inc. All rights reserved. 3DJ7404
equation based on the value of missing at the beach or in of cash are rising and where
claims submitted for new bank couch cushions. they are going.”
 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.

THE WALL STREET JOURNAL. * * * * Friday, December 13, 2019 | A11

FROM PAGE ONE

Jim Warner, a retired net- that link carried less than 3% makes the FCC results “almost
Internet work engineer who has helped
advise the agency on the test,
of Cox’s web traffic, they said.
Some FCC officials were un-
The Sandwich Bandwidth Test
Six users who tested their internet speed for The
meaningless for describing ac-
tual user experience.”
told the FCC in 2015 that the comfortable with the omission,
Providers rules for providers were too
lax. “It’s not much of a code of
people familiar with the epi-
sode said. Network experts say
Wall Street Journal showed speeds much lower
than those promised by their speed plans. Each user
The Journal reached out to
the top 10 U.S. broadband pro-
viders to ask about special

Sway Tests conduct,” Mr. Warner said.

The reports largely paint a
rosy picture for internet pro-
broadband providers share re-
sponsibility with internet mid-
dlemen to keep their connec-
tried different speed tests on various platforms.
Testing products
treatment of speed-test traffic.
AT&T, CenturyLink Inc., Char-
ter, Comcast, Cox, Mediacom
viders. Last year, a key finding tions upgraded. Communications Corp., Verizon
Speedtest.net Fast.com Provider test
Continued from Page One was that “for most of the ma- AT&T was repeatedly at log- and Windstream Holdings Inc.
ing on their broadband busi- jor broadband providers that gerheads with the FCC over its denied that they prioritize
nesses to drive growth. were tested, measured down- results and worked closely with “The analogy I gave AT&T on the phone was, speed tests, and said they up-
The FCC informs companies load speeds were 100% or bet- the agency to have favorable ‘Look, I’m paying for a 12-inch sub and you’re grade their networks continu-
which customers are part of the ter of advertised speeds during items included in the report, a giving me 3 inches of it. You need to adjust the ally and don’t give special
speed tests, allowing some to the peak hours.” former AT&T employee famil- price or give me the rest of the sandwich.’” treatment to FCC speed tes-
prioritize giving those house- Internet providers such as iar with the testing said. ters. Altice USA and Frontier
Ryan Greenwald AT&T
holds better service, engineers Altice USA’s Optimum and Ver- FCC officials decided reluc- San Diego, Calif. 40 60 Communications Corp. said
who worked at some of the izon Communications Inc.’s tantly not to publish AT&T’s 100 Mbps they follow the FCC’s code of
companies said. The FCC relies Fios have used the FCC’s re- DSL data in last year’s report, 20 80 conduct.
Got Paid
on companies to provide infor- sults over the years to bolster according to Walter Johnston, 100
Last year, satellite internet
0
mation about the speed plans their marketing claims. Charter a former FCC official who over- provider Viasat Inc. left the
17.9 Mbps - 42.3 Mbps
for the customers being tested. Communications Inc., which in saw the program until he re- FCC’s program after growing
Major providers have per- 2016 swallowed Time Warner tired last year. concerned about rivals’ behav-
suaded the FCC to remove un- Cable to become the No. 2 U.S. “Personally, I was not happy “Never does the bill get prorated for that, ior. Its satellite competitor
favorable data, including indi- internet provider with its Spec- about that,” he said. Overall, even if you’re only giving me 50-60% of what Hughes Network Systems LLC
vidual houses with poor scores, trum brand, cited FCC speed- Mr. Johnston defended the FCC I pay for.” had posted results in 2017
blaming faulty equipment. test results to defend itself test, saying the agency never showing it was providing
They have successfully argued when the New York attorney meant it to be a “consumer AT&T greater than 160% of its adver-
to exclude test days when general sued it in 2017 for guarantee.” John Bishop 400 600 1000 Mbps tised download speeds on aver-
heavy traffic slowed scores, overpromising and underdeliv- AT&T this year told the Raleigh, N.C. age, far exceeding Viasat’s.
200 800 Got Paid
such as during NFL games or ering internet speeds. commission it will no longer Also worrisome, the New York
when Apple Inc. pushed a new Comcast Corp. says about cooperate with the FCC’s Sam- 0 1000 attorney general alleged that
software update. Reasons for its Xfinity service on its web- Knows speed test. Instead, it 456.6 Mbps - 570 Mbps Charter-Time Warner Cable
the deletions aren’t always in- site that “recent testing per- said it plans to use its own juiced its FCC results by using
cluded in the FCC reports. formed by the FCC confirms measurement tool, which it be- certain tactics to paper over
that Comcast’s broadband In- lieves to be more accurate, to Comcast bad scores. Charter settled
100 150
ternet access service is one of report performance to the gov- 250 Mbps with New York state last year
SamKnows clients the fastest, most reliable ernment. 50 200
Got Paid for $174.2 million while admit-
Many internet providers broadband services in the Providers have requested ting no wrongdoing.
0 250
gain additional information United States.” the FCC delete poor results It “really made us ques-
about the users being tested by Marcia Pearson, a Cox Com- from individual users, such as Mohan 74.4 Mbps - 130 Mbps tion…whether [others] are in-
Chandhuluru
paying SamKnows, the U.K.- munications Inc. customer in when major weather events tentionally trying to influence
Iselin, N.J.
based company that adminis- Goleta, Calif., pays for 30 like hurricanes hurt internet the results,” said Christopher
ters and provides equipment Mbps—or megabits per sec- service, or when users have Murphy, Viasat’s associate gen-
for the tests, for real-time ac- ond—service but registered outdated modems. AT&T eral counsel. The fact that
400 600 1000 Mbps
cess to testers’ scores year- speeds of only 3.6 Mbps when Some FCC staff felt the pro- some internet providers were
round and other analytics. she used Cox’s own tool to test viders should be responsible 200 800 also clients of SamKnows
Got Paid
Representatives of major her speed on a recent day. for ensuring their customers struck Viasat as a conflict of
broadband providers denied “It is annoying that one has have updated equipment, a for- 0 1000 interest.
Bruce Clark
tampering with the FCC study, to pay for something that is mer FCC official said. The FCC 1.5 Mbps - 1.1 Gbps FCC officials said their in-
Charlotte, N.C.
pointing to a code of conduct falsely advertised,” she said. In routinely allows those dele- vestigation of Viasat’s com-
they sign that forbids them interviews, several other con- tions as long as companies plaint found no evidence of
Charter
from influencing the results un- sumers said they have had sim- make good-faith efforts to in- tampering by Hughes. A
less it is “consistent with nor- ilar experiences. form users of old modems. 80 120 200 Mbps
Hughes spokeswoman said the
mal business practices.” They Cox said that after it was In 2013 and 2014, millions of 40 160 Got Paid company has also left the pro-
said any network upgrades im- contacted by The Wall Street Comcast, Verizon and Time gram and always abided by the
proved service for swaths of Journal about Ms. Pearson, it Warner Cable customers expe- 0 200 FCC’s rules.
their subscribers, not just discovered outdated equipment rienced internet slowdowns— David Resnick A big reason for the gap be-
81 Mbps - 91.5 Mbps
households in the FCC’s tests. in the network connecting to most notably while viewing Red Oak, Texas tween the speeds internet com-
AT&T said that in its case, Netflix, but also on other sites panies promise and those they
Cox
the company asked the FCC to and applications. The FCC 12 18 deliver is the structure of most
remove DSL data from the re- omitted speed-test results re- 30 Mbps broadband networks. Service
port because it no longer mar-
Internet providers flecting that in its report. 6 24 Got Paid providers pipe bandwidth into
kets that older technology, wield tremendous The agency said the network neighborhoods, where it is
which relies on copper phone congestion, which stemmed 0 30 shared by those households.
lines, used by a small percent-
influence over the from a standoff between Net- Marcia Pearson
3.6 Mbps - 5.9 Mbps The amount of bandwidth pro-
Goleta, Calif.
age of its customer base. The FCC study. flix, the providers and internet viders deliver is a fraction—of-
company said the commission’s middleman Cogent Communi- Note: Ryan Greenwald tested using Wi-Fi; all others used a hardwired connection. ten as low as 1%—of the total
own policies should have ex- cations Inc. over who should Yan Wu/THE WALL STREET JOURNAL bandwidth all households in
cluded the “obsolete” internet pay for upgrading their shared the neighborhood have collec-
plans. AT&T also said that it her home and fixed it. Ms. connections, was outside the ahead of others, said other for- fore the test that “you have is- tively signed up for in their
did validate the DSL accounts Pearson said her speeds have scope of the study. Comcast, mer Cablevision engineers sues somewhere,” said Jason plans, according to CTC Tech-
for the FCC. improved. Verizon and Time Warner Ca- close to the effort. Weil, a former engineer at nology & Energy, a telecommu-
An FCC spokesman said the Last year, Cox, one of the ble got stellar grades in the Cablevision’s SamKnows Time Warner Cable and Char- nications consulting firm.
program has a transparent pro- biggest U.S. broadband provid- 2014 report. scores dramatically improved ter who worked on the FCC That helps explain why at
cess and that the agency will ers, wasn’t pleased with a weak Henning Schulzrinne, the within a span of months, ac- program at both. “If you know times of peak usage, when lots
continue to enable it “to im- score on a key FCC metric, chief technology officer at the cording to an FCC blog post. six months ahead of time, that of people are playing “Fort-
prove, evolve, and provide which said Cox’s speed “consis- FCC for several years, said he The following year Cablevision is much, much easier.” Mr. Weil nite” or streaming movies, for
meaningful results as we move tency”—what most subscribers was against such exemptions topped the rankings. said the close collaboration be- example, there isn’t enough
forward.” get most of the time—was 37% because they obscured custom- Altice declined to comment tween SamKnows and the pro- bandwidth to go around, and
SamKnows said it doesn’t of what it advertised. Cox offi- ers’ actual experiences. on activity before its acquisi- viders worked to the benefit of people experience speeds
believe anything the providers cials denied responsibility, ar- New York-based Cablevision tion of the company. all users. slower than what they paid for.
did could have made a differ- guing to the FCC that a con- Systems Corp., which was ac- A former senior Cablevision Company executives said
ence to the results, given the gested link to an internet quired by Altice in 2016, got executive denied the company they provision bandwidth
checks and controls it has in middleman had lowered scores especially bad results in 2011. gave households involved in Timely upgrades based on how much a neigh-
place. The company’s chief ex- for some of its Arizona cus- Top executives pushed a net- FCC tests special treatment. Sometimes providers boost borhood actually uses in order
ecutive, Alex Salter, said hav- tomers. work-wide effort to improve FCC officials said they are speeds for households during to be fiscally responsible.
ing internet providers as cli- In the December 2018 re- service, and during the up- unaware of any such effort to the actual FCC speed-testing When providers roll out
ents doesn’t interfere with its port, Cox’s results aren’t in- grades, FCC speed-testing us- influence the test. They added period. Comcast a few years faster speed plans, without up-
ability to do accurate testing cluded in two main charts that ers were given white-glove that they publish the raw data ago upgraded speeds in some grading the total bandwidth
for regulators. The program show how companies compare treatment, some former Cable- from tests online and rely on regions without notifying the available to neighborhood net-
has spurred companies to make in consistency. The FCC put vision engineers said. rival carriers to keep one an- FCC, making test results look works, the results can be even
major nationwide investments Cox’s scores, including the 37% Jack Burton, a former Cable- other honest. stellar, people close to the FCC more frustrating for consum-
in network upgrades, he said. figure, in a footnote, where it vision engineer who is now a One way providers keep tabs program said. The FCC discov- ers. For example, Charter-Time
The tests cover thousands of said that, factoring out the consultant, said “there was an on households is by paying ered the changes after spotting Warner Cable oversold its net-
users who sign up directly with contested results, the consis- effort to make sure known [us- SamKnows for access to its anomalous data and adjusted work to the point where 200
SamKnows, or are invited to tency score would have been ers] had up-to-date equipment” real-time dashboard. Sam- the numbers. Mbps and 300 Mbps house-
sign up by the FCC or their in- 85%. like modems and routers. Ca- Knows said its contracts with This September, amid an holds “would achieve speeds
ternet providers. They install Cox and the FCC said most blevision also marked as “high providers range from about FCC test, Comcast rolled out that were only a half to a third
measuring devices in their of the speed tests occurred priority” the neighborhoods $13,000 to more than $650,000 speed upgrades for many cus- of their promised speeds,” the
homes, which measure speeds over the congested internet that contained speed-testing a year. tomers in several states. New York attorney general al-
throughout the day. link, the upgrade of which had users, ensuring that those Through the dashboard, “We have done annual speed leged in its 2017 suit. Yet Time
For the official report, the been delayed. In normal use neighborhoods got upgraded companies could find out be- increases during various Warner Cable’s FCC speed-test
FCC uses data from a specific months of the year for the past results in the two years prior
time period, usually a month or Omitted Data 18 years,” a Comcast spokes- averaged 100% or more of
two in the fall, to produce a re- Providers have persuaded the FCC to exclude the results of more woman said. “In addition, the promised speeds.
200 %
port that has been published and more internet speed tests. The 2018 report excluded more FCC’s measurement system is Internet experts said the
eight times in nine years, most than a quarter of test-taking users, mostly because providers said designed to ensure that any FCC’s entire testing approach
recently last December. The the users weren’t representative of their popular speed plans. changes in speed or tier during needs to be rethought to be
FCC and SamKnows inform the the testing window are ac- more useful for consumers.
internet providers the dates of Excluded users, Average peak-period 180 counted for so they can be The current test measures how
the testing period and send by select providers sustained download speeds as measured accurately.” much capacity internet provid-
them lists of individual testers’ a share of advertised speeds Internet providers can spot ers supply to a household, in a
names so they can confirm Comcast Charter AT&T government speed-test data on vacuum, but doesn’t monitor
Internet providers routinely score high
which speed packages the cus- 300
numbers on the FCC's Measuring their networks and essentially the internet performance that
160
tomers have signed up for. The Broadband America report. open more bandwidth for a users actually experience while
agency compares that informa- Years represent when the customer for the duration of streaming, gaming or surfing
200 Verizon DSL Verizon Fios
tion with the actual results reports were released the test, said James Cannon, a the Web, which can be affected
from the tests administered by Comcast Cox longtime cable and telecom en- by overtaxed neighborhood
SamKnows. 100 Charter Others 140 gineering executive who left networks, Wi-Fi interference or
That makes it possible for AT&T Charter in February and now traffic jams deep in the guts of
companies to keep tabs on consults for various providers. the internet.
many testers from year to year, 0 “I know that goes on,” he The Journal conducted its
engineers said. Providers can 2012 ’13 ’14 ’1 ’16 ’17 ’18 said. “If they have a scheduled own test this year to assess
120
use that information, as well as test with a government agency, how speed affects internet per-
real-time data from the dash- Excluded users in 2018, by reason they will be very careful about formance, focusing on how us-
board SamKnows sells them, how that traffic is routed on ers actually experience a vari-
which anonymizes the users 27% 73% the network.” ety of streaming services. The
but shows their states and re- 100 Michael Dozier, a former Journal’s testing found that
gions, to make targeted up- Providers say Outdated AT&T engineer who left this there were marginal benefits
grades that improve service for users aren't measuring year; Maurice Dean, a telecom for paying for faster speeds be-
those households, engineers representative equipment and media consultant with 22 yond 100 Mbps.
of plan
said. years’ experience working on Tim Wu, a longtime broad-
Less than 5 80
Internet experts and former days of data streaming, cable and telecom band industry critic and Co-
FCC officials said the setup projects, including at Alphabet lumbia University professor,
gives the internet companies Not enough users Inc.’s Google; and Mr. Lubow, likened the FCC’s approach to
enormous leverage. “How can in speed plan the cable and telecom consul- measuring the speed of a car
you go to the party who con- Outdated Cablevision rose quickly AT&T persuaded the FCC tant, agreed there was special after getting rid of traffic. “If
60
trols the information and say, modem in the FCC rankings in the to remove its DSL results treatment of speed tests. you want to get an idea of
year after putting a priority on from the 2018 report, leaving
‘please give me information Provider unable “It is problematic,” Mr. Dean what Americans are experienc-
to verify user speed-testing users, according only its higher-performing
that may implicate you?’ ” said to former engineers. service in the results.
said. “This attempt to ‘en- ing, that’s a totally different
Tom Wheeler, a former FCC Other reasons hance’ performance for these story,” he said.
chairman who stepped down in Source: FCC measurements is a well-known —Inti Pacheco contributed
January 2017. Yan Wu/THE WALL STREET JOURNAL ’11 ’12 ’13 ’14 ’1 ’16 ’17 ’18 practice in the industry” and to this article.
 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.

A11A | Friday, December 13, 2019 NY * * THE WALL STREET JOURNAL.

GREATER NEW YORK

NYCHA
Accused
Of Rent
Overcharge
BY TYLER BLINT-WELSH

A group of tenants is suing

the New York City Housing
Authority, accusing it of vio-
lating federal law by over-
charging thousands of renters
every year for at least a de-
cade, according to a lawsuit
filed Thursday.
Residents in public housing
aren’t allowed to be charged
rent that exceeds 30% of their
income under the Housing Act
of 1937. The lawsuit says NY-
CHA failed to adjust rents
when households experienced
a loss of income, raised rents
for some tenants due to incor-
rect income calculations and
RICHARD DREW/ASSOCIATED PRESS

wrongly moved to evict resi-

dents for nonpayment of rent.
Edward Josephson, director
of litigation and housing for
the nonprofit Legal Services
NYC, said he has heard about
such issues from public-hous-
ing residents for years, but
typically dealt with them on a
Barnard College student Tessa Majors was killed Wednesday after a group attacked and robbed her in Morningside Park on Manhattan’s Upper West Side, police said. case-by-case basis. An influx
of complaints in recent

Barnard Student ‘Shone Bright’

months led him to pursue the
case on behalf of nine tenants.
“We’re trying to change a
system that is basically callous
and uncaring to the people
Stabbing victim “Everyone is shaken to the lottesville, said she spent New York; that’s where she they’re supposed to protect,
core,” she said. “This hits the hours in its studio recording wanted to be,” he said. “I and we’re trying to reduce the
Tessa Majors, 18, core of how vulnerable we are and producing her most recent know that’s where her heart number of eviction cases and
was remembered as at every level.” album, “Girl Problems.” was.” the number of homeless people
Katie Long, a 20-year-old “An integral part of the Police were investigating in the city,” Mr. Josephson said.
a talented musician Columbia College student, at- MRC community, Tess was whether Ms. Majors’s killing Brooklyn Councilwoman Al-
tended a vigil at the entrance friendly, outgoing, and incredi- was related to a recent string icka Ampry-Samuel, a Demo-
The fatal stabbing of a first- to the park. She said she feels bly supportive of other MRC of robberies in Morningside crat and chair of the Commit-
year Barnard College student safe on campus, but will begin members,” the nonprofit said Park, a roughly-30-acre green tee on Public Housing, called
in a Manhattan park near the taking extra precautions. in a statement. space, officials said. the agency’s alleged actions
elite school has left class- “If I need to go somewhere This past spring, Ms. Ma- Major crimes in the park “negligent.” She said she
mates, faculty and area resi- late at night, I’m going to try jors was an intern at the Au- have doubled this year com- would meet with NYCHA Chair
dents shaken over her loss and and bring someone with me so gusta Free Press, a daily on- pared with last, according to Gregory Russ on Friday.
concerned about security. I’m not alone,” she said. “Gen- line newspaper in central the most recently available When asked for comment,
Tessa Majors, 18 years old, erally they do such a good job Virginia. Editor Chris Graham city data. NYCHA spokeswoman Barbara
of making people feel safe. I said he was impressed with Between Jan. 1 and Sept 30, Brancaccio said the agency
By Katie Honan, guess that’s why it’s so sur- school in Charlottesville, Va., her interest in a local school- Morningside Park had 16 ma- hadn’t been served with the suit.
Ben Chapman prising, in a sense.” in the spring, winning aca- budget controversy. He last jor crimes, including 11 rob- NYCHA, which operates the
and Melanie Grayce Ms. Majors was wrapping demic honors in English. She spoke to her in November, beries, data show. For the country’s largest public-housing
West up her first semester at Bar- also played music with her when she emailed him a link same period in 2018, the park system, recently has come un-
nard, a liberal-arts college for friends in an alternative-rock to her band’s album on Spotify recorded eight major crimes, der fire for failing to properly
died Wednesday evening after women, with final exams be- band, Patient 0. and said she was doing well in including five robberies. maintain buildings, resulting in
a group attacked and robbed ginning Friday. Music Resource Center, an New York City. Brad W. Taylor, president of thousands of residents going
her in Morningside Park, said She graduated from high after-school program in Char- “She was so excited to be in the Friends of Morningside without heat during the winter.
New York Police Department Park, a nonprofit group that
officials. supports the park, said the or-
A Columbia University se- ganization had been notified
curity guard found her shortly of an increase in attempted
‘We’re trying to
before 7 p.m. with several robberies on the western side change a system that
knife wounds after she stag- of the park, near where Ms.
gered out of the park. Majors was discovered.
is basically callous
Morningside Park, Barnard Still, the level of crime in and uncaring.’
and Columbia University are the park was far lower than it
located in Manhattan’s Morn- was years ago, he said.
ingside Heights. “The overall message is
Two minors have been that we need to recommit to Last year, it was sued by the
taken into custody in connec- Morningside Park’s safety,” federal government for expos-
tion with the stabbing, and in- Mr. Taylor said. “It’s come ing children to lead paint.
vestigators were looking for a such a long way.” In January, the housing au-
third suspect, said NYPD Chief Felix Huang and Jessica thority was placed under the
of Detectives Rodney Harrison. Xia, both 22, on Thursday guidance of a federal monitor.
Family and friends of Ms. were walking a block away A spokesman for the monitor
Majors described her as a vi- from the site where Ms. Ma- declined to comment on the
brant, talented young woman jors was attacked. lawsuit Thursday.
who loved making music, as- The Columbia graduate en- Of NYCHA’s more than
pired to be a writer and had gineering students said the 100,000 housing units, Mr. Jo-
settled into life in New York. campus generally is safe, but sephson said more than
“Tess shone bright in this added that they avoid Morn- 34,000 households were
world, and our hearts will ingside Park. threatened with eviction by
CAITLIN OCHS FOR THE WALL STREET JOURNAL

never be the same,” her family Ms. Xia said she has a NYCHA over nonpayment of
said. “sense of safeness,” but Mr. rent in 2018. He said a large
Makeshift memorials for Huang said there also is “some number of those eviction pro-
Ms. Majors were set up at an probability of crime” in the ceedings were due to errors
entrance to Barnard and at area. made by the housing authority.
Morningside Park, and evening Ms. Majors’s death, he said, Yvonne Lane, a plaintiff in
vigils were planned. will change his behavior. the lawsuit who has lived in the
Tovah Klein, a psychology “In the past, I would go Stuyvesant Gardens Houses in
professor and director of the home at 9 or 10 from the li- Brooklyn for nearly 50 years,
Barnard College Center for brary,” he said. “Now, maybe 6 was pushed to the brink of evic-
Toddler Development on cam- or 7.” tion due to a mistake, she said.
pus, said she cried when she —Leslie Brody Ms. Lane retired from her
saw one of the memorials. A memorial for Tessa Majors was set up Thursday at Barnard College, an elite school for women. contributed to this article. job as a recreational therapist
at a nursing home because of
severe arthritis in July 2018.

Schools Boost Diversity With Admissions Change She said she notified NYCHA
of her pending retirement that
spring. When her monthly in-
come dropped from more than
BY LESLIE BRODY to 16%, from 5%. tion Council for District 3, a with District 3 to identify areas last year. Nearly all of its stu- $4,000 to about $1,500, her
The data offers an early largely advisory group of par- where we can collaborate in an dents are black or Hispanic. rent was supposed to decrease
A push to desegregate public peek at how the plan might ent representatives. She said effort to better integrate their “I don’t think this plan con- from $1,431 to $428. That
middle schools on Manhattan’s play out. The system, under she was frustrated, however, schools,” a spokeswoman said. sidered the negative effects on didn’t happen until December
Upper West Side and south Har- Chancellor Richard Carranza, that the city Department of Most District 3 middle schools like mine,” said West 2018, according to the lawsuit.
lem by changing the admissions faces pressure from integra- Education didn’t send enough schools are still selective. Fam- Prep’s principal, Carland By January 2019, NYCHA
system has shifted enrollment tion advocates to add racial extra funding to help teachers ilies rank their choices, schools Washington. “As a result of started eviction proceedings
slightly, new data showed. balance to many schools. Dis- adjust to assisting children rank applicants by test scores the plan, diversity in our against Ms. Lane for unpaid rent,
This fall marked the first for trict 3 pursued that goal by with a broader mix of back- and other factors and the de- school has not changed and despite the agency issuing a no-
the new admissions system in setting targets for economic partment makes matches. Al- our enrollment declined, tice in September that her rent
District 3. In a plan that city of- and academic diversity at 16 lowing schools to screen stu- which results in less resources would be lowered, the suit says.

11
ficials and some parents hailed schools for grades six through dents has led to concentrations for the school.” Ms. Lane said she battled
as a model—and other parents eight. They said the strategy of white, relatively wealthy Mr. Washington wants the with NYCHA in housing court
opposed—the district gave pri- helped the students most likely students at several popular, district to explore eliminating for more than six months, and
ority for a quarter of sixth- to suffer the consequences of high-achieving schools. selectivity in middle-school eventually was given emergency
grade seats at each middle long-term segregation. of the 16 participating middle At Booker T. Washington, admissions, a shift made re- assistance from the city’s Hu-
school to low-income, low-per- Some parents resisted the schools moved closer to goals. the share of black and His- cently by District 15, which in- man Resources Administration,
forming students who applied. plan, worried that their high- panic sixth-graders inched up cludes Brooklyn’s Park Slope. which paid off more than $3,000
At two of the district’s larg- performing children might be this fall to 28%, from 22%. At Overall, District 3’s unau- of her back rent—an amount
est, most-sought-after and edged out of desirable schools West End Secondary, that dited enrollment data showed which, she said, she must repay.
highest-achieving schools, for and that classroom instruction grounds and skills. share grew to 31%, from 25%. that fears of substantial white On her fixed income, which
example, the children in that might weaken, but the depart- Department of Education of- At least one middle school flight didn’t pan out: Of 1,270 comes from Social Security,
priority group edged higher. ment approved the plan in ficials said 11 of the 16 partici- lost enrollment as children children enrolled in sixth the most she can pay in a
At Booker T. Washington, they June 2018. pating middle schools have with low test scores got new grade in the district this fall, given month is about $25, she
increased to 18% of sixth-grad- “I’m cautiously optimistic moved closer to diversity tar- opportunities to head else- 5% are Asian, 24% black, 33% said. “It will be a while,” she
ers this fall, up from 9% last that progress is under way,” gets. “We are supportive of where. Only 49 sixth-graders Hispanic, 32% white and 5% said when asked how long it
year, city data showed. At said Kimberly Watkins, presi- their community-driven plan enrolled in West Prep Acad- other. The percentages were might take her to dig out of
West End Secondary, they rose dent of the Community Educa- and are continuing to work emy in Harlem, down from 62 roughly the same last year. the debt.
 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.

THE WALL STREET JOURNAL. * * NY Friday, December 13, 2019 | A11B

GREATER NEW YORK

Trade Center
Site Manager
Gets Extension
BY PAUL BERGER ing a tip in 2016.
The investigation, which is
The Port Authority of New ongoing, led the New York At-
York and New Jersey has ex- torney General’s Office to file
tended its contract with the criminal charges against an
firm that manages sections of electrical manager, accusing
the World Trade Center site him of taking more than
despite a spate of problems. $17,000 worth of bribes in the
Port Authority board mem- form of expensive sports tick-
bers voted unanimously ets and other gifts in return
Thursday to extend Cushman for confidential information
& Wakefield’s contract for one that helped a contractor.
year. The real-estate services The attorney general also
firm oversees centralized in- accused the manager, James

WILLIAM VOLCOV/ZUMA PRESS

frastructure and public spaces Luckie, of Setauket, N.Y., of in-
at the 16-acre site in lower volvement in hiring unquali-
Manhattan, including the fied electricians at the site
World Trade Center Oculus. whose work led to potential
The Port Authority has safety issues. The attorney
spent hundreds of thousands general said that the electri-
of dollars patching leaks at the cians received about $1.3 mil-
Oculus after its $32 million lion in total compensation
skylight broke while being from the Port Authority. The Port Authority has spent hundreds of thousands of dollars patching leaks at the Oculus after its $32 million skylight broke in 2018.
maintained and operated un- Mr. Luckie pleaded not
der Cushman & Wakefield’s su- guilty in May. His next appear- man & Wakefield during the in the near future. The first renewal approved Trade Center site. That sum in-
pervision in 2018. The agency, ance in New York Supreme one-year contract extension. A spokesman for Cushman Thursday will run through cludes $37 million for repairs,
which also runs the region’s Court is scheduled for Janu- “We did it in order to give us & Wakefield declined to com- June, 2021. The firm will re- maintenance and materials.
major ports and airports, ary. An attorney for Mr. Luckie adequate time to take a look ment. ceive an annual management Mr. Cotton said he didn’t
hasn’t figured out if or when it said Thursday that his client at the long-term future,“ he The Port Authority first fee of up to $850,000. know whether any of that
will repair the skylight. hadn’t received a bribe and said. awarded the seven-year man- Port Authority board mem- money would be used to repair
Cushman & Wakefield also isn’t guilty of a crime. A Port Authority spokes- agement contract to Cushman bers also authorized Cushman the skylight because the au-
has come under scrutiny after Port Authority executive di- man later clarified that the & Wakefield in 2013. That & Wakefield to spend up to thority is still waiting for an
the Port Authority inspector rector Rick Cotton, speaking agency’s options included agreement included three one- $50 million in 2020 for man- engineering evaluation of
general began looking into one after Thursday’s vote, said the opening the management con- year renewal options, subject agement, operation and main- what went wrong and is con-
of the firm’s employees follow- agency will scrutinize Cush- tract up for competitive bids to board approval. tenance services at the World sidering its options.

GREATER NEW YORK

NEW JERSEY phy, so they plan to seek sup- NEW YORK partment of Health said the vote CONNECTICUT fer Dulos, the mother of their five
port from voters. ensures the state has the emer- children. Prosecutor Robert Schei-
Lawmakers to Weigh The proposed amendment State Tries to Keep gency regulations on the books Husband Asks Court nblum said the state requested
Cannabis Referendum must pass with a three-fifths E-Cigarette Ban Alive if the courts uphold the ban. To Lift a Gag Order the gag order to avoid prejudicing
majority in both houses in a sin- Critics including the Vapor potential jurors. The court didn’t
New Jersey lawmakers on gle year, or with a simple major- New York’s ban on flavored e- Technology Association sued the A lawyer for a Connecticut rule on the request Thursday.
Thursday scheduled hearings on ity in two consecutive years to cigarettes is still held up in court, state over the ban, which they say man whose estranged wife disap- Ms. Dulos hasn’t been seen
a proposal to let voters decide in appear on the ballot. but the state’s Public Health and is governmental overreach that peared seven months ago asked since May 24. Mr. Dulos and his
2020 whether to legalize recre- Under the amendments, vot- Health Planning Council voted would hurt small businesses sell- the state Supreme Court on ex-girlfriend, Michelle Troconis, are
ational marijuana. ers would be asked whether to Thursday to keep the emergency ing e-cigarettes and adult smokers Thursday to lift a gag order in the charged with tampering with evi-
Democratic-led Assembly and approve recreational marijuana ban on the books for another 90 who say flavors help them quit. criminal cases against his client. dence and hindering prosecution.
Senate committees set hearings for those 21 and older. days in case the judge rules in the Supporters such as the American Norman Pattis, the attorney They have pleaded not guilty.
on the proposed referendum. All sales of cannabis products state’s favor. Cancer Society’s advocacy group for Fotis Dulos, told the justices In arrest warrant affidavits,
Lawmakers failed in March to would be subject to the 6.625% The council had approved the said they would continue pushing the gag order imposed by a trial- police contend that Mr. Dulos
advance legislation legalizing rec- sales tax. ban in September, but a state for the ban on flavored e-ciga- court judge violates Mr. Dulos’ killed Ms. Dulos at their home
reational cannabis, despite sup- Towns could pass ordinances appeals court blocked New York rettes and for laws to make simi- free-speech rights and prevents and covered it up with Ms. Tro-
port from Democratic leaders to charge a local tax as well. in October from enforcing it. lar restrictions permanent. him from fighting allegations by conis’ help.
and Democratic Gov. Phil Mur- —Associated Press A spokeswoman for the De- —Associated Press police who believe he killed Jenni- —Associated Press

All the Power

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

A12 | Friday, December 13, 2019 THE WALL STREET JOURNAL.

LIFE&ARTS

CLOCKWISE FROM TOP: DENNIS MANUEL/GETTY IMAGES; JACK PLUNKETT/INVISION/ASSOCIATED PRESS; TIM MOSENFELDER/GETTY IMAGES; CAMERON MCCOOL
THE BEST MUSIC OF 2019

In an Age of Short
Attention Spans,
The Album Is Alive
and Well

BY MARK RICHARDSON

T
he album may no
longer be the stan-
dard platform to
measure musical
worth—streaming
has been chipping
away at its primacy for over a de-
cade—but it still has a lot of life
left in it. Many of the most cre-
ative artists continue to do their
best work in an extended format,
where they can show their range Clockwise from below:
and command attention for longer Earl Sweatshirt
periods. These dozen records, performing in New
some short and sweet and some Orleans in March; Angel
epic, were among the year’s finest Olsen; Billie Eilish
and make a convincing argument performing in Austin in
for the health of the form. October; FKA twigs
The primary members of experi- performing in Atlanta
mental Brooklyn band 75 Dollar in October; the cover of
Bill are guitarist Che Chen and Lana Del Rey’s album
percussionist Rick Brown. But on ‘Norman F—ing
their album “I Was Real” (Thin Rockwell!’
Wrist/Black Editions) more than a
half-dozen additional players
joined them, adding saxophones,

Many of this year’s best

releases reveal the
vibrancy of an extended
musical format.

amplified viola and more. Mr. Chen

and Mr. Brown specialize in slowly
developing blues-drone instrumen-
tals that suggest a fusion of the
Velvet Underground and Missis-
sippi Fred McDowell, but their
hypnotic experiments are surpris-
ingly easy to sink into.
Angel Olsen took a brilliant turn
toward orchestral rock on “All
Mirrors” (Jagjaguwar). Teaming
with producer John Congleton, she
created an ambitious song cycle
about falling in and out of love,
with moments of pain and joy ac-
centuated by impressionistic
string arrangements. Some may
have missed the propulsion of her
past records’ roots-inflected rock, sounds didac- sonal songs infused with mythol- to tackle big themes. Partnering
but the overwhelming drama of tic, the LP is ogy and arranged into a sumptu- with producer and songwriter Jack
“All Mirrors” was a perfect fit for anything ous package. Antonoff, Ms. Del Rey assembled a
Ms. Olsen’s charged narratives. but—it often British electronic producer Sam collection of densely allusive songs
In May, Big Thief released plays like a Shepherd has been releasing mu- about hope, desire and acceptance.
“U.F.O.F.”—a record of raw folk-rock party, drawing sic as Floating Points for a decade, Confessional singer-songwriters
that seemed a lock for year-end from hip-hop and this year’s “Crush” (Ninja like Joni Mitchell were an inspira-
lists—but they topped it with “Two and classic Tune) is his finest record yet. Mr. tion, but Ms. Del Rey projects her
Hands” (4AD), their second album soul in songs Shepherd is a musical shape- introspection onto familiar arche-
in five months. Anchored by the that are funny, shifter, assembling melodic instru- types, telling her story through
plaintive voice of bandleader Adri- self-aware and mental pieces that incorporate our shared pop culture.
anne Lenker, Big Thief makes deeply moving. jazz and modern composition Young rapper Polo G (born Tau-
searching songs that probe essen- Vernon’s band Bon Iver expanded While Tyler, the Creator made while returning regularly to the rus Bartlett) had one of the year’s
tial questions—Why are we here? upon the splintered aesthetic of his most accessible album yet this steady beats of techno. The tracks best debuts with “Die a Legend”
How do we move on from trauma? their recent work, making earthy year, the R&B-inflected “Igor,” rap- on “Crush” are lush and richly cin- (Columbia), an album that chroni-
How do we connect with others and grounded tunes that were per Earl Sweatshirt, his compatriot ematic, an invitation to close your cled the chaotic and violent life of
without losing ourselves?—on a hu- electronically processed to within in the Odd Future collective, moved eyes and make your own pictures his native Chicago with a wounded
man scale. an inch of their lives. Filled with in the opposite direction. The EP- as they unfurl. heart. Mr. Bartlett’s lightly melodic
Billie Eilish was one of 2019’s an uncountable number of bloops, length “Feet of Clay” (Tan In the past, Jessica Pratt’s folk- and word-packed rhyme style is
breakout stars, and much of the bleeps, whooshes, and all-consum- Cressida/Warner) is dense, knotty based albums also seemed like his calling card, but his secret
surrounding conversation focused ing bass drops, “i,i” is tech-ob- and dark, a showcase for surreal soundtrack fodder, perhaps some- strength is his empathy. He notices
on her youth (she turns 18 this sessed but keeps circling back to wordplay and druggy sonics built thing to accompany a dramatic in- people living in poverty doing
month) and her skill at building an the warmth of Mr. Vernon’s voice from roughly c hopped samples. terlude in a Wes Anderson film. But whatever they need to do in order
online fanbase. But her album and his wide-eyed philosophical The continuous tumble of fractured “Quiet Signs” (Mexican Summer/ to survive and doesn’t judge them,
“When We All Fall Asleep, Where outlook. imagery mimics the sensation of City Slang) burrowed into pure at- and he describes where he comes
Do We Go?” (Darkroom/Inter- Alabama Shakes frontwoman absorbing too much information at mosphere and built a world of its from and where he wants his life
scope) is a fascinating aesthetic Brittany Howard dug deep into once. own. Most songs feature just Ms. to go in remarkable detail. It’s a
object, bringing together a range her own past and emerged with If Earl Sweatshirt’s record finds Pratt’s voice and guitar bathed in complicated picture that requires
of influences (hip-hop, folk, pop) “Jaime” (ATO), her musically var- truth in ugliness, “Magdalene” reverb, a presentation that sounded time to come into focus, and it
into an expression that felt new. ied and emotionally riveting solo (Young Turks)—the first LP in five positively eerie. It argued that si- makes you glad artists like him
Most memorable were Ms. Eilish’s debut. She named the record after years from London avant-pop lence sometimes speaks the loudest. and others here are still making
whispered vocals—brace yourself her sister, who died at an early singer FKA twigs (born, Tahliah Torch singer Lana Del Rey also statements that reward patience.
for a raft of imitators—that made age, and Ms. Howard uses her Barnett)—imbues emotional range stripped her music to its essentials
a pop smash feel as close and di- family’s history as a springboard with elegance. Mostly produced by on her album “Norman F—ing Mr. Richardson is the Journal’s
rect as a text message. to explore race, sexuality, religious versatile beatmaker Nicolas Jaar, Rockwell!” (Polydor/Interscope), rock and pop music critic. Follow
On “i,i” (Jagjaguwar), Justin faith, and lots more. If that “Magdalene” is a collection of per- but she used the additional space him on Twitter @MarkRichardson.
 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.

THE WALL STREET JOURNAL. Friday, December 13, 2019 | A13

LIFE & ARTS

THE BEST TELEVISION OF 2019

CLOCKWISE FROM TOP LEFT: FRONTLINE; HULU; HBO

The Drama of
War and the
Pursuit of Justice
BY DOROTHY RABINOWITZ Clockwise from above: August
Wittgenstein and Rick Okon in
THE BEST SHOWS of 2019 were ‘Das Boot’; Albane Courtois and
set around the globe and shared a Suranne Jones in ‘Gentleman
common theme—the drama of war Jack’; Waad al-Kateab and her
and the pursuit of justice. Subti- daughter, Sama, in ‘For Sama’
tles abounded.

“Das Boot’’ (Hulu) powered in, as- forming strength those skills im-
sured, elegant and phenomenally parted to the drama.
gripping, no small triumph given its
status as a sequel. Written chiefly “Gentleman Jack” (HBO), Sally
by Johannes W. Betz and Tony Wainwright’s drama set in Halifax,
Saint, and directed by Andreas England, in 1832, was based on the
Prochaska, the series begins where several million words of an actual
the 1981 film “Das Boot”—based on diary kept by Anne Lister—land-
Lothar-Günther Buchheim’s novel of owner, world traveler and utterly
the same name—leaves off. The singular woman for her time and
time is 1942; the German U-boats place. This was evident not only
assigned the task of sinking Allied from her dress—folds of black
supply ships are themselves going wrapped around a body of impres-
under, decimated, thanks to the sive height giving her a distinctly
cracking of the Enigma code that masculine appearance—but her in-
made it possible to read German difference to fears that the nature
communications. of her private life become known
This was a reboot that came to the world. She has loved only
with additions (based on Buch- women in that life. Portrayed by
heim’s 1995 sequel)—nothing less Suranne Jones, she’s in her early
than the inclusion of a whole new 40s and about to have her heart
dimension of the war, this one kidnapping and murder of a Mus- broadsheet. The greatest charm of ary Israeli spy who succeeded in broken again in this smashing se-
fought on dry land in occupied lim teenager from East Jerusalem this “Masterpiece” series (written passing himself off for years, at ries, full of heart and wit.
France between Resistance fight- so exceptional in its brutality that by Mike Bartlett, directed by Tom the highest levels of government
ers and their German pursuers. In all of Israel seemed to grieve, Vaughan) may have derived from and society in Syria, as a wealthy “Tricky Dick” (CNN), notwith-
this battle, a young German among them the parents of the its pleasingly improbable preoccu- businessman and patriot devoted standing its fatuous title, delivered
woman turned Resistance member three boys killed by Hamas. This pations—its imagining of a world, to the Syrian nation. A riveting a remarkably penetrating portrait
(a stellar Vicky Krieps) wins the remarkable work of storytelling by today, in which papers war about saga in itself (written and directed of Richard Nixon—and one very
heart of the chief Gestapo investi- Hagai Levi, Joseph Cedar and Taw- matters like journalistic ethics. by Gideon Raff), “The Spy” was ut- far from the standard compendium
gator hunting the anti-Nazi under- fik Abu-Wael was infused with an- The idealistic heroine from the terly transformed by Sacha Baron of Nixon lore. A human picture.
ground (a terrifyingly nuanced guish, relentless in the hard light broadsheet, the Herald, was ap- Cohen, dazzling in the role of the
performance by Tom Wlaschiha). it shone on every aspect of the re- palled by the no-holds-barred Mossad spy, the imposter who was “For Sama” (PBS) was conceived
If this on-land addition could sponse to that murder—and, not thuggery of the tabloid, the Post, able to win hearts and minds as he by Waad al-Kateab, an activist with
never match the breath-shortening least, to the determined agents of whose reporters thought nothing made his way into intelligence cir- the pro-democracy insurgents in
drama taking place in the confines the Shin Bet, Israel’s internal secu- of threatening parents of children cles in Syria, so persuasive was his Syria, who devoted herself to re-
of the U-boat, it was nevertheless rity agency, who set about finding who had committed suicide with air of authority. It should have cording life during the six-month
one capable of delivering unfailing the killers. humiliating publicity if they come as no surprise that Mr. siege of Aleppo, which ended in
suspense with brilliant ease. weren’t granted exclusives. The Baron Cohen, a distinguished sati- 2016—a hell of daily bombings by
“The Press” (PBS ), a boisterous flint-hearted editor of the Post, rist heretofore known only for his Vladimir Putin’s planes, which made
“Our Boys” (HBO) reconstructed fantasy set in contemporary Lon- had, of course, no such concerns. comic genius at the art of passing hospitals their prime target. The de-
the events that followed the kid- don, had as its subject two British He was portrayed by Ben Chaplin, fictional characters off as real, tails of this “Frontline” documentary
nap and murder of three Jewish newspapers engaged in mortal who ran away with the show. could do so here to such sublime are unforgettable, as is its testa-
teenagers by agents of Hamas in combat—one a low-life tabloid, the “The Spy” (Netflix) chronicled effect in an entirely straight role. ment, in the midst of the slaughter,
2014. There would be a revenge other a somewhat higher-minded this history of Eli Cohen, legend- No less striking was the trans- to the heroic defiance of the rebels.

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.
1 2 3 4 5 6 7 8 9 10 11 12 60 “Who ___?” PUZZLE
CONTEST
Edmonton
d 0s <0
-0s (slangy query)
Vancouver
V Calgary
C ary 10s 0s 13 14 15 16
10s
61 Drying kiln
Seattle 0s Winnipeg
p 17 18 19 64 Fuel figure
30s 20s
20s 65 401(k) cousin 29 Costly
Portland
d 30s 20 21 22
20s 10s Montreal
31 Discouraging
50s 40s Helena Bismarckk 20s Ottawa 66 Somewhat
Billings Augusta
A g t 40s 23 24 25 26 27 28 29 words
Eugene
g 30s 67 Somewhat
30s 40s 50s
20s Toronto
T t A bany
Albany
b Boston
t 32 Southernmost
30s Pierre
P
30 31 32 33 68 Capitol Bldg.
Boise Mpls./St.
p s /St.
/ PauPaul Hartford
rtford 60s Ivy
30s 30s
Milwaukee
k t
Detroit Buffalo
l figure
Reno Lake
Salt La ke City
Lake C tyy
Sioux
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ll Chicago
Chic
Ch g Cleveland
Cleve
l l d New Yorkk
ew Y 70s 34 35 36 37
69 Took the bus 35 Tripping tune
Cheyenne
Ch y Des
es Moines Philadelphia
P hil d lphhi
50s 30s 20s Omaha
h 80s 36 Bud’s bud
Springfield
p i gfi ld
Pittsburgh
Indianapolis Pitts b gh
Washington
h
hi on D.C.
D.C
DC 38 39 40 41 42 70 Sculptor Henry
Sacramento
20s Denver 90s
71 Yoga need 37 Jeopardy
San
n Francisco LLas Topeka Kansas Charleston
Charles Richmond
h d 43 44 45
Vegas
Colorado
C d City 100+
Down 38 Slimming option,
60s Springs
p Wichita
hit St.. Lou
LLouis Louisville
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h
50s 46 47 48 49 50 51 for short
Angeles
Los A
An l 40s 50s Nashville
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Memphi
ph
Charlotte
C h l
2 Ace the test 39 Petri dish goo
Columbia
C l b 52 53 54 55 56
San
n Diego
an Di
Die Phoenix
Ph Albuquerque
Alb q q Oklahoma
kl homa City 40 Caffeine-rich
70s 40s Little Rock Atlanta
A
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3 Will of
Tucson
T c 60s 57 58 59 60 nut
El Paso Ft. Worth
F Wor th
Dallas
D ll Jackson Birmingham
Jack gh
Cold
“Arrested
T-storms 42 Raiders’ org.
Mobile
b JJacksonville
k ill 61 62 63 64 65 Development”
-0s 70s 60s 44 Treat
0s Austin
A ti Houston
t 70s Stationary Snow 4 Grind away
Orlando
d 66 67 68
New
w Orleans 5 Swell 45 More
10s 80s San
an Antonio
A t i Tampa
Ta p
20s Honolulu
l 80s Showers Flurries 69 70 71 6 Squalid spots eco-conscious
Anchorage
A h Miami
30s 80s 47 Legolas, e.g.
70s 7 Onetime
40s Ice
OUT OF BOUNDS | By Mike Shenk Swedish 49 Cruel practice
imports 50 How Alaska is
U.S. Forecasts City
Today
Hi Lo W
Tomorrow
Hi Lo W City
Today
Hi Lo W
Tomorrow
Hi Lo W
The answer to 20 Spot in la mer 38 Victoria and 8 Elsa’s sister first among the
s...sunny; pc... partly cloudy; c...cloudy; sh...showers; this week’s contest 21 Name on a Albert states
Omaha 43 20 sn 24 11 pc Frankfurt 43 38 sn 47 41 sh 9 Amber, e.g.
t...t’storms; r...rain; sf...snow flurries; sn...snow; i...ice
Orlando 80 66 t 78 52 t Geneva 42 35 r 47 44 r
crossword is an trophy the 41 Solar wind 51 Swimming
NFL player whose 10 Melber of
Today Tomorrow Philadelphia 49 48 r 57 41 r Havana 84 57 pc 84 62 s contest answer particle 53 Tony winner
City Hi Lo W Hi Lo W number was retired. MSNBC
Phoenix 70 48 s 72 48 pc Hong Kong 71 63 s 72 66 s helped to win 42 Exclude Lenya
Anchorage 33 30 sf 34 29 sf Pittsburgh 41 35 r 42 31 r Istanbul 58 51 pc 63 49 pc twice 11 Mayflower
Jakarta 90 76 sh 90 77 t Across 43 Brain securer of 54 “Same here!”
Atlanta 49 45 r 57 42 pc Portland, Maine 42 40 pc 50 40 r vehicle
Austin 78 41 s 75 49 s Portland, Ore. 50 39 r 47 35 sh Jerusalem 56 47 pc 57 42 s 1 Paternity proof 23 Morse clicks film
Baltimore 46 45 r 52 40 r Sacramento 59 47 r 58 38 c Johannesburg 79 57 t 83 64 pc 12 Jargon suffix 55 British Columbia
4 Thompson of 25 Online feed 44 Clog clearer neighbor
Boise 46 31 c 42 27 pc St. Louis 50 34 c 43 22 c London 47 40 sh 47 39 sh
initials 15 More forbidding
“Men in Black: 46 Buddy
Boston 45 44 c 55 42 r Salt Lake City 42 33 c 38 23 sn Madrid 60 46 c 54 46 pc 22 Grass coating 58 Racket
Burlington 39 35 c 44 37 r San Francisco 59 52 c 57 48 pc Manila 90 77 s 89 78 pc International” 26 Knew, in Scottish 47 “Dig in!”
Santa Fe 53 29 s 49 33 pc Melbourne 66 56 c 68 55 pc dialect 24 Jeweler’s 59 Arid
Charlotte 43 38 r 56 35 sh 9 Gushing review 48 Panettone piece
Chicago 42 31 c 37 19 c Seattle 50 41 r 46 38 pc Mexico City 72 44 s 72 45 s gadget 61 Crew tool
Cleveland 43 36 c 42 29 r Sioux Falls 30 8 sn 13 -3 c Milan 39 29 c 47 31 s 13 Anvil site 30 Ruth known as 52 How some
Wash., D.C. 45 45 r 52 41 r Moscow 35 32 c 33 30 c 14 Back from the “the radio canary” 27 Neophyte gamer 62 Blood letters
Dallas 63 39 s 64 43 s history is passed
Denver 47 24 pc 35 19 pc Mumbai 85 73 pc 88 75 pc sea 32 Seat during a on 28 Scat star 63 Funny Caesar
Detroit
Honolulu
42 32 c
83 72 c
40 28 r
83 72 r
International Paris
Rio de Janeiro
47 43 r
86 73 t
51 45 sh
83 74 t 16 History divisions sermon 54 Conk out Previous Puzzle’s Solution
Houston 73 47 pc 72 54 s Today Tomorrow Riyadh 79 56 pc 72 61 c 17 Thousandth of a 33 Bullring cheer
City Hi Lo W Hi Lo W
56 Turner of film I T S S O S T O
P P I E D
Indianapolis 46 33 c 41 21 r Rome 60 41 t 59 45 pc yen, once 34 Fuzzy on the K A P U T P A R
E U N D O
Kansas City 53 30 pc 35 17 s Amsterdam 45 40 sh 46 41 sh San Juan 85 76 sh 87 76 pc 57 Earning a E X A C T F A R E
S B L I P
Las Vegas 62 45 s 62 44 pc Athens 61 55 pc 61 52 r Seoul 44 29 r 42 24 s 18 Scaly pet links five-yard penalty S I N K E R G L
OW A T E
R O B E S A B Y S S
Little Rock 52 36 pc 57 37 s Baghdad 67 46 pc 67 48 pc Shanghai 62 45 pc 62 51 pc 19 Function with a 37 Negri of silent (and where you’ll N O L O A T E
R R E
Los Angeles 72 54 s 65 52 pc Bangkok 89 69 s 90 74 pc Singapore 83 76 t 81 76 r wave films find a clue) S P U T T E R S O H A R E
Miami 81 70 pc 85 65 t Beijing 49 23 pc 41 26 pc Sydney 71 64 c 78 66 pc F A C T O I D F L O R I D A
Email your answer—in the subject line—to crosswordcontest@wsj.com
s

Milwaukee 42 28 c 34 20 c Berlin 38 36 c 42 36 sh Taipei City 77 65 s 75 64 pc L E A N N L I L L I P U T

Minneapolis 23 15 sn 16 -2 c Brussels 44 40 r 47 40 sh Tokyo 48 43 c 61 44 s W E S S O N T A C T
by 11:59 p.m. Eastern Time Sunday, Dec. 15. A solver selected at random SWE A R P R I E D
Nashville 52 44 r 53 36 c Buenos Aires 75 70 pc 84 69 pc Toronto 41 33 c 38 31 r will win a WSJ mug. Last week’s winner: Anna Hargan, West Allis, WI. T E X S U R E O U T P U T
New Orleans 68 55 sh 70 53 pc Dubai 79 69 s 81 68 s Vancouver 46 39 sh 44 35 pc R A C E P U T O N A N A C T
New York City 48 48 r 57 43 r Dublin 45 33 sh 41 32 sh Warsaw 40 35 c 40 34 r Complete contest rules at WSJ.com/Puzzles. (No purchase necessary. A V O N A C T H D U L L Y
Oklahoma City 59 32 s 52 31 c Edinburgh 42 35 sh 41 34 pc Zurich 40 35 sn 49 43 r Void where prohibited. U.S. residents 18 and over only.) WE N D T E AM S T E A L
 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.

A14 | Friday, December 13, 2019 THE WALL STREET JOURNAL.

SPORTS
The Most Improbable Player in the NBA
Duncan Robinson played Division III basketball. Now he’s starting for the Heat and is one of the league’s best shooters.
BY BEN COHEN

O
ne of the most peculiar
moments of the most
peculiar NBA player’s
basketball life hap-
pened in a game after
his senior year of high school,
when he didn’t know where he’d be
playing in college, only that it
would be a school that never sends
people to the NBA.
What happened in this one un-
forgettable game was that Duncan
Robinson was open and didn’t
shoot. His coach immediately called
timeout. “That’s selfish,” Michael
Crotty told him.
This was such an odd thing for
Robinson to hear that he wasn’t ex-
actly sure how to respond.
“He looked at me like I had nine
heads,” Crotty said.
“You’re being selfish if you don’t

FROM TOP: JASEN VINLOVE/REUTERS; MICHAEL CROTTY

shoot,” Robinson says now. “It’s so
backward-thinking to every kid
growing up.”
Not anymore. This counterintui-
tive notion became a cornerstone
of basketball as Duncan Robinson
went from a small town in New
Hampshire to Phillips Exeter Acad-
emy to Williams College to the Uni-
versity of Michigan to the develop-
mental G League after he was
undrafted. Then he became one of
the most improbable players in
NBA history. Now he’s
starting for the Miami
Heat. Duncan Robinson said coaches have urged him to shoot as much as he can,
He’s the basketball first as an AAU player, bottom, and now with the Miami Heat, top.
equivalent of a kid who’s
afraid of heights becoming ball for a living, he wasn’t going to summer league and was rewarded
an astronaut. By the time leave Williams for a lackluster edu- with a contract in the G League.
he made his giant leaps cation. “At least my mom wasn’t He would soon learn that every
from Division III to Divi- going to let me,” he said. He chose level of basketball abides by the
sion I to the NBA, the Michigan after coach John Beilein same rule.
sport was in the middle of convinced him that D-I basketball “I was having a tough time figur-
a revolution that placed a wasn’t a reach for him. ing out what was a good shot—and
premium on shooting, and It would be Robinson’s third con- then I quickly realized that every-
Duncan Robinson is the hu- secutive year in a new place at a thing was a good shot,” Robinson
man embodiment of how higher level of basketball that had said. “I needed to literally shoot ev-
much the game has been implausible the year before. erything. I still have a hard time
changed since the days of His redshirt year happened to wrapping my mind around it.”
Tim Duncan and David coincide with a remarkable period Only last year in the G League
Robinson. of change in his sport. The Golden did he finally come around to the
His story is a fairytale. State Warriors were about to win unlikely idea that someone who
It’s also an economics les- their first title. Curry was about to fantasized about D-III basketball
son. NBA teams have new win his first MVP. The game of bas- could be a contributor in the NBA.
demands—and Duncan ketball was evolving in Robinson’s The Heat felt the same way. They
Robinson is the supply. favor. signed him to a two-year, $3.1 mil-
He’s a surprisingly valuable “I had one year to become as lion deal that appears to be a bar-
player because the talents of some- Elisabeth Robinson still remem- asked for permission to spend the good of a player as I could possibly gain now that he’s the shooting
one Heat coach Erik Spoelstra has bers the incredulous response of summer concentrating on basket- become with all the resources in guard in the league’s most efficient
called “one of the best shooters on his school’s principal when she in- ball. It paid off. “I had a good se- the world and a staff entirely in- lineup and, according to some met-
this planet” are suddenly worth quired about filming basketball nior year by my standards,” he vested in my development,” he rics, among the game’s most useful
millions of dollars. games for her son’s college recruit- said. “Not by the world-of-basket- said. “I had never had that. I re- players.
“It took so many things outside ment: “You don’t think he’s going ball standards.” member calling my friends and be- The Heat have drilled into Rob-
of my control to get to this point,” to play basketball in college, do It was good enough that he took ing like, remember when we used inson’s brain that he simply can’t
said Robinson, who is shooting 45% you?” a postgraduate year at Exeter after to shell out $100 to drive down to shoot enough. Spoelstra orders him
on 3-pointers this season. “That’s Duncan Robinson couldn’t be his four years at The Governor’s Boston at 5 a.m. and work out? to take crazy shots, shots that
not lost on me.” sure himself. But it was around this Academy, and he caught the atten- Now it’s some guy’s job to work me might miss by several feet, shots
Robinson went to a middle time when something useful hap- tion of Williams, the academically out.” that make everyone in the arena
school with five kids in his graduat- pened: He went from 5-foot-7 to 6- elite liberal-arts college in the Berk- Robinson is the first to admit spit out their tequila. When he
ing class. When he was a freshman foot-7 so quickly that his wardrobe shires. Then he had another good that none of this was planned. He doesn’t shoot, they make him run
in high school, he was only 5-foot-7. couldn’t keep up. year by anybody’s standards: Rob- didn’t go to Williams so he could sprints. They even showed him
By the time he was a junior, he was “I have an older brother, so I inson was the national freshman of go to Michigan, and he didn’t go to video of how Robinson not shoot-
coming off the bench for a medio- have a lot of hand-me-downs,” Dun- the year on a team that played for Michigan so he could get to the ing hurts the entire team. “It was
cre team. His wildest dream was to can said. “But then I outgrew him.” the national title. It was such a NBA. hard-wired,” he said. “A concerted,
play D-III college basketball. “We had to buy a lot of shoes good year that he began to think But he thrived at Michigan, deliberate, intentional effort to get
“I wanted to use basketball to and pants,” Elisabeth said. about transferring. where the biggest lecture is nearly me to be more and more aggres-
get into a school that normally I She wanted him to get a summer Robinson visited Davidson Col- the size of the undergraduate popu- sive.”
wouldn’t be able to get into,” he job before his senior year of high lege, the alma mater of Stephen lation of Williams, and playing in It has reached the point that his
said. “A lot of people at that point school. He had a different idea. In- Curry, and the University of Michi- the NBA was no longer so prepos- past no longer matters to the Heat.
were, like, that would be a reach stead of frying eggs as a line cook gan. Since he couldn’t have imag- terous. He went undrafted but They’re too busy thinking about
for you.” at the local general store, Robinson ined that he’d one day play basket- signed with the Heat’s team in Duncan Robinson’s future.

JASON GAY

How to Make It in New York

On $324 Million From the Yankees
Dear Gerrit Cole, So here’s some unsolicited ad- shower in the kitchen, and the bed
Welcome to New vice: is a contraption known as a Mur-
York, instant money- I’d probably start with a place to phy bed, but they are perfectly fine
bags! Everyone in live. Gerrit, you will encounter apartments for a fellow just start-
KATHY WILLENS/ASSOCIATED PRESS

sports is talking about folks who are going to try and talk ing out in New York City.
the absurd amount of you into the suburbs, and there are Do you know what a Murphy
cash you’re going to be making as perfectly wonderful people in the bed is, Gerrit? You’re about to find
a pitcher for the New York Yan- suburbs, but come on, man: You out.
kees—$324 million over nine years, just signed with a club in New York You’re going to have to limit
which comes to (WARNING: sports City. You should live in the city, your expectations. For $50 million,
writer doing math!) a lot of dough just to experience it. It’s New York! you’re not going to get everything
per season…$36 million! Thirty-six You know what Sinatra sang! Don’t you want. You’re going to have to
million just to throw a baseball move to Connecticut, at least not make compromises. The place
about once a week, and occasion- right away. Nothing interesting probably isn’t going to have a The Yankees made Gerrit Cole the highest-paid pitcher in baseball history.
ally get yelled at by the back pages happens in Connecticut after 2 doorman. It might not have an ele-
of the Post and the Daily News. p.m. vator. It’ll be what’s called a “walk- you’re in the way. And even when without a rosemary twig. The in-
Amazing. What a town! The problem is, apartments in up,” which means you’ll have to you’re not in the way. stant the bartender puts a rose-
It’s a wild sum, it really is, in- New York City are pricey. You’re walk up the stairs with all of your Better yet, get yourself a pass mary twig inside it, it costs $19.
stantly making you one of the going to be shocked. A rich fella groceries, and when you get all the for the bike share. Bikes are much Cook at home now and then.
highest-paid athletes on the planet, named Ken Griffin recently paid way to the top, you’ll realize you better than cars at getting around Take it easy on Broadway shows;
and, yes, it’s going to draw some $238 million for a condo. That’s forgot to buy almond butter, and town, Gerrit. I have no joke here. I off-Broadway is where it’s at. Don’t
scorn and ridicule—Joe DiMaggio right—close to a quarter billion for you’ll hate yourself. just like saying this to make car buy Knicks tickets—just stand on
once took grief for asking for a home in Manhattan. Though in Oh who am I kidding? You can’t people mad. the corner in a rainstorm and get
$40,000. The Yankees told Joe D. fairness, the place Griffin bought afford the almond butter, either. As for entertainment, watch soaked by a passing bus, it’s the
to sit on his wool hat, and he has some pretty nice views. And The good news is a walk-up yourself. You probably should only exact same sensation. You can see
wound up getting $37,500. natural light. And, I think, more apartment will keep you in shape. dine out once or twice a month in at least three animals in the Cen-
But Gerrit, here’s a hard, unpop- than one bathroom. So will your transportation. Gerrit, New York City, because dining out tral Park Zoo without buying a
ular truth that nobody’s going to Gerrit, I hate to be a killjoy, but don’t believe what the Car Mafia starts to really add up—especially ticket. Get your hair cut at a bar-
tell you: Thirty-six million a year is you’re not going to be able to af- says: New York City is for walking. if you have a lot of friends who in- bershop, not a salon. Avoid spin-
not that much money, not in this ford that kind of joint. A condo You’ll be able to walk to Yankee sist on celebrating their 34th birth- ning classes. Steal someone’s Net-
wonderful, awful city. New York is that costs $238 million—it’s out of Stadium! Depending on where you days at an expensive place, which flix password. Stay off Madison
a criminally expensive place. It’s your price range. You’re going to get your apartment, it will take you gets to be super annoying, who Avenue. And Fifth. And listen to
become a Holiday Inn for billion- have to find something more prac- anywhere from five minutes to four cares about a 34th birthday. You’re the boomers: no avocado toast. I
aires. You can easily blow $36 mil- tical. I’d say you should start with hours. A four-hour walk sounds going to be stunned to pay $6 for a haven’t even mentioned the city
lion in a weekend here, and that’s maybe a two-bedroom. There are a like a lot, but the time just flies by. cup of coffee. I won’t even tell you tax. Wait until you hear about that.
without ordering appetizers, or any handful of two-bedrooms left in Along the way, you will meet New how much a pastrami sandwich You can make New York City
stupid bourbon cocktails with rose- New York City in the $50 million Yorkers, nice people who have no now costs. As for those bourbon work, Gerrit. It’s a hell of a town—
mary twigs in them. range. Granted, they may have a problem with yelling at you if cocktails, they’re $14 if they come even on $36 million a year.
 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.

THE WALL STREET JOURNAL. Friday, December 13, 2019 | A15

OPINION
The FBI’s Fusion Fiasco BOOKSHELF | By Stephen M. Silverman

The Federal
Bureau of In-
vestigation
ate, doesn’t make things up,
doesn’t sell baloney.” The duo
felt “obligated” to report this
not announced that the FBI
was investigating” the candi-
date. So on Oct. 31 he outed
against Mr. Page in the FISA
application. This primary
source said “he/she never ex-
A Day in the
has had its
worst week in
modern his-
“national-security threat” to
the FBI. The media would later
assert that Mr. Steele had
himself and the FBI’s “sub-
stantial inquiry” in a Mother
Jones interview. The inspector
pected” Mr. Steele to present
their discussions as “facts”
since there was “no proof”
Park With Walt
POTOMAC tory. The Jus- proved a valuable source to general’s report says Mr. and it was “hearsay,” the kind
tice Depart- the FBI in the past; many Simpson described this as his of “conversation that [he/she]
WATCH
ment’s in- claimed the FBI corroborated “Hail Mary attempt.” had with friends over beers.”
Disney’s Land
By Kimberley
spector gen- the dossier. Only after Mr. Steele ex- The source said that Mr. By Richard Snow
A. Strassel
eral found Now Mr. Horowitz has ex- posed the FBI’s investigation Steele had in any event “mis- (Scribner, 408 pages, $30)

A
that the bu- posed the many fictions. His did the bureau fire him and stated or exaggerated” state-
reau had deceived a federal report notes that Mr. Steele begin its overdue diligence. In ments and the source’s access s understatements go, this one’s a doozy. Its source
court and abused Americans’ was hired from the start to November and December to Russian officials. was Roy Disney, the less heralded, less handsome
civil liberties. It was equally find Trump-Russia collusion. 2016, the FBI sent teams to The Justice Department and—as gleaned from Richard Snow’s richly engaging
humiliating for the crew that Mr. Steele told the inspector talk with people who’d worked was similarly unimpressed “Disney’s Land”—less headstrong brother of Walt Disney.
gulled the FBI into its ex- general that Mr. Simpson with Mr. Steele professionally. with Fusion’s work product. Since 1923, Roy had been the business brains of the Disney
cesses: Fusion GPS, Christo- asked him in May 2016 to de- Official Bruce Ohr told the in- company was no stranger to his kid brother’s “screwy ideas.”
pher Steele and their media termine “whether there were spector general that Mr. Simp- But when he was informed after the war that his sibling had
acolytes. any ties between the Russian Christopher Steele son over the years would call been, over his objections, slyly seeking funds to develop his
Fusion is the opposition-re- government and Trump and with tips on Russian crime fig- own amusement park, Roy’s response was: “Junior’s got his
search firm the Democratic his campaign” and “whether has little credibility ures, but since most of it hand in the cookie jar again.”
National Committee and the Russia was trying to achieve a left after the inspector didn’t prove “actionable,” he It doesn’t take a sorcerer to know that the tale of Disney-
Hillary Clinton campaign hired particular election outcome.” “did not do anything with it land has a happy ending. Mr. Snow, the former editor of
in 2016 to kneecap Donald The timing is notable: Mr. general’s report. and did not try to introduce American Heritage magazine and the author of several books
Trump. Fusion in turn hired Simpson was talking about Simpson to the FBI.” Ouch. of American history, provides his own spoiler with the
Mr. Steele, a British former collusion months before the With quality like this, it’s subtitle, “Walt Disney and the Invention of the Amusement
spy, to compile the infamous FBI was—and even before Mr. They were told he’d held only no wonder the FBI’s strenuous Park That Changed the World.” But when Roy first happened
“dossier” that the FBI used to Steele reported it to him. a “moderately senior” position efforts to corroborate the dos- upon his brother’s maneuvering, amusement parks were
obtain surveillance warrants The report notes that the at MI6 and that he “demon- sier proved a bust—as the in- passé at best, crime-ridden at worst and financial sinkholes
against former Trump aide FBI didn’t bother to confirm strates lack of self-aware- spector general has confirmed. at their core. Walt, having hired the Stanford Research
Carter Page. Mr. Simpson, a any of Mr. Steele’s explosive ness,” was “prone to rash None of the allegations pro- Institute for a feasibility
onetime Wall Street Journal claims before presenting them judgments,” and “didn’t al- vided to the FISA court were study, was told that he
reporter, tapped a network of to the Foreign Intelligence ways exercise great judg- validated. Others—such as would fail if his park didn’t
media buddies to provide the Surveillance Court in October ment.” Former FBI agent Peter Trump attorney Michael Co- include such proven winners
operation cover. 2016 as a reason to surveil Mr. Strzok acknowledged that Mr. hen’s alleged trip to Prague— as a Ferris wheel, a roller
For years, Mr. Simpson Page. The bureau also assured Steele was the type to “follow were proved “not true.” Over- coaster and games of chance—
spun a tale of how his firm—a the court that Mr. Steele was a the shiny object.” Just the sort all, “the limited information none of which Walt wanted
team of “professionals”—had “reliable” source, whose prior of guy you’d trust to dig up ac- that was corroborated related cluttering his dreamscape.
hired the “extremely well-re- reporting had been “corrobo- cusations of treason against a to time, location, and title in- Joining the chorus of dissent
garded” former “lead Russian- rated and used in criminal presidential nominee. formation, much of which was was Walt’s wife, Lillian. She had
ist at MI6.” Mr. Simpson told proceedings.” A source-validation review publicly available.” The dos- tolerated her hobbyist-husband
the Senate in August 2017 that Yet even as the FBI pre- found that Mr. Steele’s prior sier did at least get Carter taking over her backyard rose
he wanted Mr. Steele to look pared the warrant application, work had only ever been “min- Page’s job description right. garden with his steam locomo-
into Mr. Trump’s Russia busi- its “reliable” source was work- imally corroborated” and The findings overall are a tive, but she “raised the dickens”
ness dealings. So it was ing with Mr. Simpson to turn never used in a criminal pro- warning to a red-faced press (Walt’s words) when her perenni-
“alarming” when Mr. Steele their FBI plant into political ceeding. The FBI discovered corps and FBI: Beware oppo ally boyish 52-year-old spouse told her
instead found a “political con- gold—briefing reporters, try- its guy worked for an attorney researchers who offer noble that he had sold their desert vacation home
spiracy” between the Trump ing to gin up an October sur- who represented a Russian oli- intentions and fantastical and borrowed $250,000 against his life insurance
campaign and Russia. Espe- prise against Mr. Trump. The garch. It tracked down the claims. Sometimes they’re just so that he could seed his plans for the sort of enterprise that
cially because Mr. Steele had inspector general’s report says supersleuth’s sources, in par- oppo researchers. And poor looked to be, as she put it, “not fun at all for grown-ups.”
“a sterling reputation as a Mr. Steele grew frustrated ticular his primary source who ones at that. So what happened? “If you want to know the secret of
person who doesn’t exagger- that “the U.S. government had provided the allegations Write to kim@wsj.com. Walt Disney’s success,” Disney animator Ward Kimball
observed, “it’s that he never tried to make money.” To judge
by Mr. Snow’s entertaining chronicle, Walt himself didn’t

A Rabbi Walks Into a Presbyterian Church quite know what his great endeavor should be. “I just want it
to look like nothing else in the world,” he told Herb Ryman,
a Hollywood art director and Disney company illustrator.
HOUSES OF I am a full- creasing number of Christians Rulings on Jewish law are When devoted Christians go “Fueled by milk shakes and tuna fish sandwiches,” Mr. Snow
WORSHIP time pulpit believe that comprehending frequently engulfed in a laby- back to, and advocate for, writes, the two spent a weekend conjuring a map of Disney-
By Michael rabbi serv- the Old Testament and Juda- rinth of casuistic hairsplitting their tradition, asking and land: It featured five zones dedicated to America’s past,
Gotlieb ing a Con- ism is an important way to debate. Great rabbinic minds struggling with timeless present and future and wound up serving as the blueprint
servative understand Jesus better. Af- often have been diverted questions, so too will Jews for the park, which would occupy 160 acres 30 miles south
synagogue ter all, he was born a Jew. He away from timeless moral is- return to theirs. Judaism of downtown Los Angeles, in a backwater called Anaheim.
in Santa Monica, Calif. This lived his entire life as a Jew. sues only to rule on the su- never has grown out of a It was Walt’s idea to tap a broadcast network into funding
year I also am periodically He sermonized to Jews and perficial, like whether alumi- vacuum. his playground. “I want your television show,” NBC’s David
teaching, counseling and died a Jew. I benefit too from num foil or bottled water is Only religion can provide Sarnoff told Roy, “but why the hell do we have to take that
preaching to Christians as a the questions, challenges and kosher. answers to life’s most vexing damned amusement park?” Sarnoff didn’t. Likewise, CBS’s
pastoral associate at Brent- insights of my Christian My time at Brentwood and critical questions. Chief William Paley. That left distant No. 3 network head Leonard
wood Presbyterian Church. brothers and sisters. When Presbyterian also has made among them is whether God Goldenson, whose ABC desperately needed name-brand
This may seem like a strange they ask me about the Torah me reflect on the decline of exists. This is foundational to programming. In addition to paying Walt for his weekly
arrangement, but it has been and Judaism, I have to think Christian affiliation in the issues that wrestle with ulti- anthology program, to be called “Disneyland,” Goldenson
fruitful for both congrega- more deeply about my own U.S. Christianity has become mate meaning, afterlife, mo- guaranteed $4.5 million in construction loans. (The park’s
tions. Rather than trying to religious beliefs. increasingly marginalized rality, human nature, holiness ultimate price tag was $17 million—about $160 million
convert each other, we’re alongside Judaism. and compassion. When reli- today—many times more than Walt’s original estimate.)
finding ways to enrich our Only 45% of Christians at- gious institutions lose sight The publisher of Disney comic books contributed an
own faiths together. I have a synagogue, tend church at least once a of these timeless questions, additional $1 million. By the end of negotiations, Mr. Snow
Dave Carpenter, senior rev- month, down from 52% a de- they run the risk of becoming tells us, the Disney company and ABC each owned slightly
erend of Brentwood Presbyte- but I also teach, cade ago, according to an Oc- outdated and irrelevant. more than a third of the park, Western Printing owned 14%,
rian, invited me. A visionary, counsel and preach tober Pew Research Center I hope the good reverend and Walt himself 17%. The creator of Mickey Mouse also held
he genuinely encourages di- report. And the future may at Brentwood Presbyterian an option “to buy out the other investors after two years.”
versity of interpretation on for local Christians. be even bleaker for U.S. started a trend by inviting an (By 1960, Walt Disney Productions owned all of Disneyland.)
Scripture and religious life Christianity. Today Christians ordained rabbi to help serve
from his pulpit. He believes, comprise 65% of the Ameri- his spiritual community for a
as I do, that to be true ecu- As a Jew, I have a deep can adult population, down year. Our theological differ- Researchers told Disney that his amusement park
menicists we first need to be love for and admiration of from 77% in 2009. Worse yet, ences are eclipsed by the val- would fail if it didn’t have a Ferris wheel and a
rooted in our own traditions. Christianity. I identify with the “nones,” or those who ha- ues we share and our ability
But we cannot stop there. We Jesus’ protests against mech- ven’t any religious identity, to learn from each other. roller coaster. He had something else in mind.
have to reach out to people anized, nascent rabbinic prac- make up more than a quarter Synagogues ought to re-
with different convictions tice, and the well-established of the population, up from ciprocate and invite priests
thereby forming a wider reli- priestly cult of his day. Jesus 17% only 10 years ago. Less and ministers to serve their “I don’t think that I ever had a complete set of plans of
gious community. This way we knew what many committed than half of millennials iden- congregants as pastoral asso- anything I undertook at Disneyland,” said Joe Fowler, a
can deepen our understanding Jews have long known: Rab- tify as Christian. Some 40% ciates. One can only hope retired Navy rear admiral installed as the construction boss
of our own faiths. binic law runs the risk of be- are unaffiliated. that such Jewish-Christian of the park. The problem, Mr. Snow notes, is that nothing of
The souls I encounter coming an end unto itself. I pray this trend reverses amity and dialogue will help its kind had ever been tried before, so it was a project in a
struggle with the same eter- Halacha, the Hebrew term for and Christianity begins to usher in the Messianic age, constant state of creative flux. And there were delays: All it
nal themes, regardless of Jewish law, doesn’t directly thrive again. The adage “a an age both our faiths yearn took to trigger one was Walt’s taking a walk through the site
their religion: the meaning to translate to “law.” It means rising tide lifts all boats” isn’t for. and determining that a certain tree belonged elsewhere on
one’s existence; coping with “way” or “path.” limited to economics. Histori- the property. Along with that came rain, testy arguments
loss; eschatology; and suffer- Unfortunately for too many cally Judaism gave form to Mr. Gotlieb is the rabbi of between Walt and Roy, mangled aluminum bumpers on the
ing, whether attributable to Jews, Halacha became a Christianity. A revitalized Kehillat Ma’arav, the West- miniature cars, a plumbers’ strike, and unionization (the
humans or God. veil—an intermediary—be- Christianity can help invigo- side Congregation, in Santa Teamsters determined that those who would see customers
Mr. Carpenter and an in- tween the individual and God. rate contemporary Judaism. Monica, Calif. on and off rides should join up). As the promised date to air
the opening live on ABC loomed, the overall situation was,
to use Mr. Snow’s word, “pandemonium.”

Seattle’s Wage Mandate Kills Restaurants On July 17, 1955, Disneyland did indeed open. The first
day brought a near-devastating combination of heat and
mechanical malfunctions, but within two months the so-called
By Simone Barron employers like Mr. Douglas, to Sitka & Spruce, a restau- find a role for my co-workers Happiest Place on Earth had welcomed its one-millionth
there’s no separate rate for rant where I had once and me at another restaurant visitor. Magically, that cookie jar had yielded gold. Today, in

T
Seattle workers who earn tips. In worked. (I previously had to in his group, but I’ve started addition to the theme parks in Anaheim and Orlando, Fla.,
his city’s minimum Washington and a handful of take on a second job there af- applying for other open posi- there are Disney parks in Tokyo, Paris, Hong Kong and
wage is rising to $16.39 other states, tips aren’t ter the rising minimum wage tions around town. I landed Shanghai. For fiscal 2019, they contributed $26.2 billion to
an hour on Jan. 1. In- counted as income earned on forced Tanakasan to adopt a an interview at a restaurant the coffers of the Burbank, Calif.-based Walt Disney Co.
stead of receiving a bigger the job. That means restaura- no-tipping payment model, called Super Bueno, owned by Before the verdict was in, Lillian had come around. Four
paycheck, I’m left without teurs are expected to pay drastically reducing my in- another established chef, days ahead of Disneyland’s opening, she grabbed a broom
any pay at all due to the pol- servers like me the full mini- come.) Ethan Stowell. Before I could and helped sweep debris off the deck of the Mark Twain
icy change. That’s because mum wage in addition to our As it turns out, I can’t re- even confirm the interview, riverboat. And the relationship between Walt and his older
the restaurant where I’ve considerable tip income. turn to Sitka & Spruce. Its Mr. Stowell announced that he brother? Roy, Mr. Snow acknowledges, “never lost his calm
worked for six years is clos- James Beard Award-winning will close down Super Bueno understanding that the company’s prosperity rested not on
ing as a consequence of the owner, Matt Dillon, is closing at the end of the year. He’s the rock of conventional business practices, but on the
city’s harmful minimum-wage The legal minimum Sitka after 14 years, defeated also closing or restructuring churning, extravagant, perfectionist imagination of his
experiment. by the one-two punch of ris- two other restaurants. younger brother.” For Walt’s part, he is quoted saying in
I work for Tom Douglas, is going to $16.39 ing rents and labor costs. I’ve lived in this city for 1957, just as Disneyland was making him rich, that “if it
one of the best-known restau- an hour, while my As a worker, you’re at- almost 20 years, supporting hadn’t been for my big brother, I swear I’d’ve been in jail
rateurs in Seattle. Mr. Douglas tracted to restaurateurs like my family thanks to the full- several times for checks bouncing.” It is personal nuggets
is in many ways responsible pay drops to zero. Messrs. Douglas and Dillon service-restaurant industry. such as these that show Mr. Snow to be as solid a storyteller
for the city’s reputation as a because they offer job secu- Today I’m struggling because as Walt Disney himself.
foodie paradise, and he re- rity and you know you’ll of a policy meant to help me.
cently celebrated his 30th an- When rent is too high, la- make money. That’s no longer I’m proudly progressive in Mr. Silverman is the author, most recently, of “The
niversary in business. He’s a bor costs too much, and cus- the case here with a high my politics, but my experi- Amusement Park: 900 Years of Thrills and Spills, and the
great boss, and his employees tomers don’t want to pay $40 minimum wage that ignores ence shows that progressives Dreamers and Schemers Who Built Them.”
tend to stay at the company for a roast-chicken entree, the tip income. I often hear peo- should reconsider minimum-
for a long time. only way for many operators ple in Seattle lament that it’s wage laws that hurt the very
But being an established to ease the pain is to close. becoming “more corporate.” workers they’re trying to In‘Booksof theYear’thisweekend
chef and a good employer So now, after six years The truth is that the city has protect. Ten works of fiction and nonfiction that defined 2019 •
doesn’t save you from the working at Mr. Douglas’s res- made it nearly impossible for Our columnists’ favorite mysteries, sci-fi and children’s books
burden of a sharp minimum- taurant Tanakasan, I need to many small businesses to Ms. Barron is a restaurant • Lives of Metternich and Lucian Freud • And what Bob
wage increase, up 73% from find a new work home. My survive. worker and co-founder of the Iger, Zadie Smith, Twyla Tharp and 48 others read this year
$9.47 in 2015. For large-scale first thought was to go back Mr. Douglas is trying to Full Service Workers Alliance.
 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.

A16 | Friday, December 13, 2019 THE WALL STREET JOURNAL.

OPINION
REVIEW & OUTLOOK LETTERS TO THE EDITOR

A Tory Lead in Britain Free College Makes Sense for Those Qualified

B
ritish voters spoke again Thursday, and and lower earners more heavily, no matter what In “‘Free College for All’ Is an Ex- same, it would raise everyone’s results
by our deadline the exit polls showed he said about “taxing the rich.” periment That Has Already Failed” in the end. Also, as with subprime
(op-ed, Dec. 7), Prof. Jackson Toby lending, the recipients weren’t
that Boris Johnson’s Tories were on They also refused to be led by a radical leftist
conflates the idea of public higher ed- equipped for the journey and remedia-
their way to a substantial ma- who has winked and nodded at ucation being accessible to those who tion hasn’t been able to overcome the
jority. If the results hold, the Boris Johnson benefits rampant anti-Semitism within qualify academically and the idea that huge skills gap they faced, leading
Conservatives will have won from taking voters at the Labour Party. Labour now qualifications should be cast aside al- many students to pursue degrees that
368 of the 650 seats in Parlia- can jettison Mr. Corbyn and together. Free education, should we didn’t add value. University adminis-
ment, their biggest majority their word on Brexit. his radical cronies and offer ever be in position truly to offer it, in trators have been happy to accommo-
since the sainted Margaret voters a more plausible cen- no way constrains an institution’s date these new students to keep the
Thatcher era. trist alternative. need to ensure that students qualify seats and parking lots full. Society is
This paves the way for Britain’s divorce Labour’s thumping by Britain’s middle class for admission. then faced with new college grads (or
from the European Union that voters first is also a warning to American Democrats who The differences between the cam- dropouts) with no useful career path
backed in June 2016. That goal has been sty- think left-wing populism is the way to defeat pus I entered as an assistant professor and burdensome debt, not to mention
and the campus I now lead as presi- the cost to the student psyche. Free
mied by feckless leadership and elite opposi- Donald Trump’s right-wing populism. Corbynism
dent are vast—but have absolutely college has already been with us in
tion in Parliament, but Mr. Johnson promised left the middle of British politics to be filled by nothing to do with how much we many ways, and eliminating tuition is
to “get Brexit done” after becoming Prime Mr. Johnson’s Tories. A Democratic Party that charge in tuition. We have demon- just the latest gimmick.
Minister this year and voters seem to have re- veers to the Bernie Sanders or Elizabeth Warren strated that broadening access does TIMOTHY B. MICHAEL
warded him for it. left could let Mr. Trump win again by frightening not mean admitting unqualified stu- Executive director, Financial
The Tories seemed likely to gain seats even suburban voters who dislike the President per- dents. Our commitment to access re- Education Association
in parts of the country that have backed the op- sonally but don’t want socialism. quires us to seek out qualification and Houston
position Labour Party for decades. This more While British voters are rejecting Cor- talent where it has been overlooked.
than compensated for the departure elsewhere bynism, they are less clear about what they We have learned that students with Increasing paths toward a free col-
of voters who abandoned Mr. Johnson’s Conser- want beyond Brexit. The weakness of Mr. John- vast potential do not always arrive on lege education isn’t an issue, it’s an
vatives in favor of pro-EU parties such as the son’s campaign was to hesitate from offering campus obviously qualified to join an opportunity. Mr. Toby writes as if the
honors program—but we have set opportunity is binary—free education
center-left Liberal Democrats. a bolder pro-market, pro-growth agenda for ourselves the goal of teaching to those or no education. While for prospective
This vindicates Mr. Johnson’s gamble on fear of alienating left-leaning former Labour qualifications. CCNY—and so many students the situation might be that
throwing the Brexit question back to the voters voters who support Brexit. His main offer to CUNY schools—achieve nation-leading way, it isn’t for the optimists who’d
by seeking a mandate for his revised deal with voters was a package of modest tax tweaks and social-mobility figures by carefully like to improve our education system.
Brussels. Plenty of anti-Brexit politicians and vague promises to negotiate free-trade deals identifying and developing true poten- I agree that college might not be for
commentators have argued since the 2016 ref- around the world after Brexit, coupled with tial, rather than by narrowing admis- everyone. However, college should be
erendum that the voters had been misinformed modest spending increases on public services sions to a sliver of the population. available for everyone who adequately
about Brexit, or hadn’t fully thought through such as police and health care. This is hard work. Genuine public completed early schooling. Instead of
the issue, or don’t want the specific type of That helped Mr. Johnson keep the focus on education in a still-unfair society de- taking time to criticize free-educa-
Brexit Mr. Johnson proposes, or have changed Brexit and on how out of touch Mr. Corbyn is, mands that we distinguish poverty of tion’s shortcomings, why don’t we
means from poverty of talent—some- look for ways to gradually help more
their minds. Mr. Johnson took voters at their but it will make the task of post-Brexit eco-
thing we do too infrequently. But students who have the drive and re-
word that they wanted Brexit then and still nomic reform more difficult. His challenge will what treasures await those who see cord of achievement but require a
want it now, and he was willing to buck the Lon- be to persuade Leave voters that Britain can and act on that distinction. It’s hard cheaper path?
don intelligentsia in the bargain. best reap the dividends of independence from to imagine any public investment COREY RUTKIN
The large Tory gains also offer hope of re- the EU with a range of domestic economic over- making more dynamic or immediate Schenectady, N.Y.
storing some semblance of sanity to British pol- hauls to taxation and regulation. returns than that made in public edu-
itics. The anti-Brexit resistance should now ad- One early place to start would be negotiating cation, both for individual students Jackson Toby is spot on in his as-
mit they have lost the argument. Instead of a trade deal with the U.S. Mr. Trump, the Anglo- and in the construction of a more fair sessment of how students value un-
endlessly and tediously relitigating the 2016 phile, likes the idea. Mr. Johnson should leap and prosperous society. earned college admission. The judge-
referendum, the focus can shift to Britain’s fu- to get it done while he has maximum political VINCE BOUDREAU ment of value for future potential
ture outside the EU. capital and Mr. Trump is looking for political President, City College of New York employers also needs to be part of the
New York discussion of college for all. The value
On that score, too, this vote seems decisive. and economic victories before November’s U.S.
of bachelor’s and associate degrees
Beyond Brexit, voters faced an economic-policy election. I suggest that the last couple of de- will decline in proportion to the size
choice between Mr. Johnson’s generally pro- i i i cades of easy loans and admissions of the newly minted army of degree
business pitch and the aggressive socialism of We should also thank British voters for their was done to create “college for all.” holders. The law of supply and de-
Labour leader Jeremy Corbyn. The exit polls show of democratic vigor. Western democracies As with subprime lending, the big mand never takes a semester off.
suggest Labour has won its lowest number of haven’t been functioning well of late, Westmin- idea was that if we could only change SCOTT EPPELMAN
seats since the 1930s. ster included. Mr. Johnson’s leadership, and his the outcomes for everyone to be the Coppell, Texas
Voters rejected Mr. Corbyn’s promise—or show of respect for Brexit voters, is proving
threat—to nationalize large segments of the that democracies can be moved to make a deci-
U.K. economy such as railways, broadband and sive choice. Mr. Johnson will have to reward
the post office. They figured out that he’d be that faith as he governs in a post-Brexit era, but You Don’t Build Kids’ Characters With Lies
able to pay for that and an expansion of social- his apparent victory offers a broader lesson for As a human being and as a psychi- ficial effects of childhood member-
welfare benefits only by taxing the middle class democratic leaders in this populist era. atrist, I am appalled by Erica ship in the Young Pioneers?
Komisar’s “Don’t Believe in God? Lie Atheism doesn’t imply nihilism.
to Your Children” (Houses of Wor- There are many profound ethical tra-
A Nuclear Milestone for Climate ship, Dec. 6). Lying to children is ditions that don’t require belief in a

Y
harmful. Your children may not al- supreme being; a partial list includes
ou probably haven’t heard about a re- closures, and according to the Nuclear Energy ways figure out the exact truth be- Buddhism, Jainism, Taoism, Confu-
cent regulatory decision that will re- Institute half of U.S. plants would shut down by hind your lies, but they will almost cianism, Stoicism, Epicureanism and
duce carbon emissions because it 2040 without a second extension. Nine are always sense that something isn’t secular humanism. It is absurd to as-
doesn’t follow the green template of control- seeking one so far. right. With the best of intentions, my sume that parents belonging to these
own parents, who were lapsed Catho- nontheistic traditions are uniformly
ling private industry and suppressing eco- If the odds for approval looked long, fewer
lics, lied to me exactly as advised by unable to raise well-adjusted children
nomic growth. U.S. power companies would take their Ms. Komisar. Outcome: I rejected reli- or to comfort those children at times
Last week the Nuclear Regulatory Commis- chances with the costly renewal process, espe- gion as fishy as early as age 8 but felt of loss.
sion (NRC) for the first time extended a nuclear cially given pressure on the industry from compelled to keep my atheism a se- R. STREETT, M.D.
plant’s license so it can operate for 80 years. The cheap natural gas and subsidized wind and so- cret for years. I got so good at telling Pleasant Hill, Calif.
decision for the Turkey Point reactors in south lar in many states. More plants would close my Sunday school teachers what they
Florida could encourage other plant owners to and much of that energy would instead be gen- wanted to hear that a priest once Remember C.S. Lewis’s advice. He
apply for renewals and extend the viability of the erated by fossil fuels. showed up at my house to tell my fa- suggested we act lovingly and gen-
leading carbon-free energy source. The Turkey Point decision doesn’t mean all ther that I had a vocation. A tendency erously, as though we held to some-
A majority of the 58 nuclear plants now future applications will pass the NRC’s safety to mistrust authority figures per- thing higher, even if we weren’t
supplying power to U.S. homes and businesses and environmental reviews, but it shows they sisted for decades and interfered with sure about our faith and though it
my ability to bond with potential might be difficult at first. Lewis
were built in the 1970s and 1980s, when they will be considered. Reactors can now operate
mentors at school and work. wrote that the existence of the de-
were licensed for 40 years. Most plants have safely much longer than originally thought with Participation in any kind of sup- sires humans have always had, in-
applied for and received 20-year extensions to appropriate upgrades. portive community group is good for cluding noble, loving ones, are evi-
bring their life spans to 60 years. Yet antinu- Because of the steep regulatory obstacles children; the beliefs espoused by such dence of a noble creator.
clear activists use the license renewal periods to building new nuclear plants, continued op- groups are probably relatively unim- If these concepts are combined
to pressure plants to close, and until the Tur- eration of existing plants is the best bet for portant. Can anyone seriously believe with Ms. Komisar’s, perhaps her ad-
key Point decision it was an open question keeping nuclear from declining below its cur- that research, had it been carried out vice is not that far off.
whether the NRC would approve second 20- rent 19% share of U.S. electric power. Envi- in the former communist bloc, would KEN VALERO
year extensions. ronmentalists who say the climate is an exis- have failed to demonstrate the bene- Littleton, Colo.
The federal go-ahead for Turkey Point comes tential crisis should be the most pleased at
at an important time for America’s maturing this indication that nuclear energy will stay
nuclear fleet. The 2010s saw a wave of plant on the grid. Forced Fire Insurance Is a Progressive Finance Pooling
Terrible, Destructive Idea Regarding your editorial “Kamala
Harris Returns to the Senate” (Dec.
Warren’s Economic Illusions Although the wildfire situation in
California is tragic, misguided efforts
4): Sen. Kamala Harris and her (for-
mer) Democratic presidential candi-

E
to help homeowners by compelling
date rivals stand unified in their
lizabeth Warren has been justly criti- tried to find a way to finance Medicare for All, insurers to write policies isn’t the so-
support of income redistribution
cized for the magical math in her Medi- she raised it to 6%. This would compound the in- lution (“California Restricts Home In-
and economic equality for all Ameri-
care for All proposal. That health plan centives to avoid the tax. surers,” U.S. News, Dec. 6). Insurance
cans. It seems fair that they adapt
would cost perhaps $34 tril- On Thursday the analysts at rates should reflect the level of risk,
this ideology to campaign funding
lion, according to outside esti- A new analysis says her the Penn Wharton Budget which is obviously quite high in Cali-
by agreeing to pool all contributions
fornia. When insurers can’t price the
mates. But Ms. Warren says wealth tax would fall Model pitched in their two raised by their individual efforts and
risk, they are understandably reluc-
the true figure is only—alaka- cents. According to their dy- tant to write policies. Compelling
share them equally.
zam!—$20.5 trillion. short—by $1.5 trillion. namic estimate, which takes them to do so, particularly at “afford-
ROBERT STEWART
Her wealth tax is the same account of macroeconomic ef- Mancos, Colo.
able” prices, sends the signal that
way, as a fiscal fact check this fects, Ms. Warren’s tax would maybe the risk isn’t so great. This is
week demonstrates. Ms. Warren wants to tax bring in only $2.3 trillion over 10 years. That’s really a driving factor in what has
the net worth of affluent Americans 2% a year almost $1.5 trillion less than Ms. Warren is now become a perpetual disaster. We Pepper ...
on assets above $50 million, and 6% on billion- counting on. only have to look at the National
aires. She says it would raise $3.75 trillion over The model also says the economy under Ms. Flood Insurance Program to see
And Salt
10 years. Warren’s wealth tax would be about 1% to 2% where this policy leads. Instead of THE WALL STREET JOURNAL

Her campaign cites a letter from two econo- smaller in 2050, compared with the baseline, helping vulnerable homeowners re-
cover from flooding as envisioned, it
mists at UC Berkeley, Emmanuel Saez and Ga- though the exact outcome depends on whether
has enticed millions of people to
briel Zucman. They say that because Ms. War- Congress spent the revenue in ways that lifted move to vulnerable coastal locations
ren’s proposed tax doesn’t have any loopholes, productivity. Meantime, average hourly wages because the cost of those decisions is
“the avoidance/evasion response is likely to be in 2050, “including wages earned by households now borne by everyone, regardless of
small.” Assume 15%, they continue, pointing to not directly subject to the wealth tax, would fall where they choose to live. Following
studies of wealth taxes in Scandinavia, Colombia between 0.8 and 2.3 percent due to the reduction a similar path with wildfires is both
and Switzerland. in private capital formation.” imprudent and immoral.
One economist who takes issue with these as- It’s not that the Penn Wharton model is pre- RICHARD G. LITTLE
sumptions is Democrat Larry Summers. The cur- cisely accurate. As Russ Roberts likes to say, you Williamsburg, Va.
rent estate tax is nowhere near so efficient, he know macroeconomists have a sense of humor
and a co-author, Natasha Sarin, have said. They because their estimates include decimal points. Letters intended for publication should
argue that Messrs. Saez and Zucman don’t seri- Still, Ms. Warren’s promises are wildly unrealis- be addressed to: The Editor, 1211 Avenue
of the Americas, New York, NY 10036,
ously account for tax avoidance, other than by tic. She’ll pay for a $20.5 trillion health program, or emailed to wsj.ltrs@wsj.com. Please
“reducing a naive calculation by 15 percent.” which actually costs $34 trillion, by imposing a include your city and state. All letters
Making matters worse, Ms. Warren subse- $3.75 trillion wealth tax, which actually raises are subject to editing, and unpublished “She says she’s packing for
quently doubled her proposed tax rate on billion- $2.3 trillion. The real magic trick would be get- letters can be neither acknowledged nor a business trip, but I’m starting
returned.
aires. At first it was going to be 3%. But as she ting voters to believe that. to think there might be another dog.”
 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.

THE WALL STREET JOURNAL. Friday, December 13, 2019 | A17

OPINION

How to Pay the Wealth Tax: Sell Everything

By Hank Adler gains. For a California taxpayer who ties would be slaughtered by Ms.
And Madison Spach would also be required to pay the Warren’s definition of wealth. The

E
state’s 13.3% income tax, the total combined wealth tax plus accompa-
lizabeth Warren’s proposed state and federal income taxes to nying income taxes on the sale of as-
wealth tax—an annual levy raise the funds to pay Ms. Warren’s sets could consume more than 100%
on the total value of one’s 6% federal wealth tax would be of net worth.
assets, not income—has 71.5%. Ms. Warren has also proposed
drawn a lot of attention. There’s another complication: In- significant increases in corporate in-
The senator’s claim that her proposal vestors and business owners often come taxes. She would return the

SARAH BLAKE MORGAN/ASSOCIATED PRESS

would cost “ultramillionaires” only take on third-party debt to pursue top rate to 35% from the current
an annual 2% and billionaires an an- their objectives, using their assets as 21%. She would institute an addi-
nual 6% wildly understates the truth. collateral to secure the debt. When tional 7% federal income tax for
Wealthy people don’t maintain bank owners sell these encumbered as- large corporations and make other
accounts with millions or billions of sets, they have a primary obligation changes to corporate taxation that
dollars of liquid cash; they invest to pay back the debt secured by the together would suffocate corporate
their assets. Those hit with the assets sold. Only after this important earnings and cash flow. Corpora-
wealth tax would have to sell assets first step would taxpayers turn to tions’ ability to purchase new equip-
each year to pay it, subjecting them paying taxes—first, federal and state ment, hire new employees or con-
to income tax as well. The actual cost income taxes, then the wealth tax. tinue research and development
would often be several times greater Note that in many cases a sale of en- would be severely constricted.
than 2% or 6%. cumbered assets would not yield suf- Elizabeth Warren in Charleston, S.C., Dec. 8. The increase in corporate tax
ficient proceeds to pay the third- rates would reduce both current in-
party debt, state and federal income come taxes leaves $300 million.) ket value of assets but ignores the come and projected future income.
Investors could pay twice taxes and the wealth tax. Including the wealth tax on the income taxes on the asset sales. In Earnings per share and individual
These taxes quickly add up. Con- first billion dollars, at the end of five our example, the founder with a tax stock prices would decline along
as much in capital gains sider a hypothetical founder of a years, sales of roughly $3.69 billion basis of zero in his company (not un- with competitiveness of U.S. compa-
just to raise the funds California company who has to pay a of the company would be required. usual for a founder) would be liable nies. The wealth tax would make bil-
6% tax on wealth in excess of $1 bil- The founder would have paid 61% of for $753 million of income taxes to lionaires sellers, not buyers. Stock
for Ms. Warren’s levy. lion. The founder is exclusive owner his net worth in taxes, losing most raise the funds necessary to pay a markets would decline dramatically,
of a company with a fair market of the business. $300 million wealth tax. If the doing lasting harm to the economy
value of $6 billion. (For simplicity’s Ms. Warren’s revenue estimates founder had recently inherited the and pension funds.
Ms. Warren has proposed a dra- sake, let’s ignore the 2% tax on for the wealth tax don’t include the $6 billion business, his tax basis Ms. Warren proposes a trifecta of
matic increase in the federal capital- wealth between $50 million and $1 additional income taxes that would would be equal to the estate-tax tax increases: a confiscatory and un-
gains tax rate, along with taxing cur- billion. Our analysis will therefore be collected on assets sold. In the value ($6 billion) and he would pay sustainable wealth tax that does not
rent appreciation of asset values for somewhat understate the total cost.) initial years, income taxes collected no income taxes on sale of shares. consider income taxes in the calcula-
wealthy taxpayers. She has proposed The founder’s wealth in excess of $1 could easily exceed the direct wealth The wealth tax would treat these tion of revenue, an annual capital-
raising the current top long-term billion would initially trigger a $300 tax. However, the wealth tax would two wealthy people differently. Tak- gains tax on asset appreciation at
capital-gains rate from 20% to 39.6%, million wealth tax. To raise the $300 kill the golden goose, and any pro- ing into account the wealth tax on tax rates two times current capital-
leaving in place the current addi- million, he would need to sell $1.053 grams anticipating a continuing the first billion dollars, the founder gains tax rates, and a massive in-
tional investment tax of 3.8%, and billion (17.6%) of the company to pay stream of tax revenues would be un- would end up with $4.88 billion crease in the corporate tax rate. In
assessing an additional 14.8% tax for Ms. Warren’s 58.2% federal capital- sustainable. while the heir would have finished short, an economic cataclysm.
taxpayers with net investment in- gains tax, California’s 13.3% income Further, the combination of taxes the day with $5.68 billion. How does
come over $400,000. That adds up tax, and the 6% wealth tax. (The would hit people with identical that make sense? Mr. Adler is an associate profes-
to a total federal tax rate of 58.2%, $1.053 billion sale price minus $613 wealth very differently. Ms. Warren Real-estate investors whose hold- sor at Chapman University. Mr.
more than double the current maxi- million in federal capital-gains taxes, determines wealth by subtracting ings have grown for decades as they Spach is a practicing attorney in
mum 23.8% on long-term capital minus $140 million of California in- third-party debt from the fair mar- refinanced and bought more proper- Newport Beach, Calif.

Modi Courts Chaos by Snubbing Persecuted Muslims

Narendra Modi’s net,” religious pluralism. Human region? The government easily could phone interview. Home Minister after night rehashing medieval con-
government could Rights Watch said the law “discrimi- have extended a welcome to perse- Amit Shah has repeatedly promised flicts between Hindus and Muslims.
be setting Hindu- nates against Muslims.” cuted groups without thumbing its to extend the National Register of Passing the citizenship law isn’t
majority India on a For the law’s defenders, it’s much nose at Muslims. Citizens across India. If the Assam the only action the Modi govern-
collision course with ado about not very much. They note For now, those hit hardest by the experience is indicative, it will make ment has taken that has dispropor-
its 172 million Mus- that the fast-track provisions apply law are Muslim migrants living in In- some of India’s most vulnerable peo- tionately hurt Muslims. In August,
lims. The latest only to people who arrived in India dia’s northeastern state of Assam. ple—especially poor Muslims with- the government abruptly scrapped
EAST IS
flashpoint came before 2015. The law neither changes Earlier this year, the Supreme Court out documents to prove their citi- statehood for Jammu and Kashmir
EAST
Wednesday, when the rights of citizens nor removes made 1.9 million of them effectively zenship—susceptible to harassment and bifurcated India’s only Muslim-
By Sadanand
Parliament passed a other routes to citizenship, available stateless by mandating the National and potential disenfranchisement. majority state into two federally ad-
Dhume
law establishing the to people of any faith. Proponents Register for Citizens—a list of those Ms. Sikander summarized the feeling ministered territories. Curbs on the
country’s first reli- say it makes no sense that officially that’s spreading through the Muslim meat and leather industries have
gious test for citizenship. Islamic Afghanistan and Pakistan or community: “Because I’m a Muslim, hurt Muslim livelihoods in some
On its face, the law merely paves Muslim-majority Bangladesh would A new citizenship law gives there’s a noose around my neck.” BJP-ruled states.
the way for persecuted religious mi- religiously persecute Muslims. They These fears may turn out to be The BJP can’t simply wish away
norities from Pakistan, Afghanistan insist India owes a special debt to ‘special consideration’ to exaggerated, but they aren’t un- India’s Muslim population, the
and Bangladesh to fast-track claims Hindus and Sikhs cruelly stranded in most every other religious founded. Since Mr. Modi’s election in world’s third-largest. A responsible
to Indian citizenship. But by point- Muslim-majority lands by the acci- 2014, the incidence of mob lynchings political party would work to isolate
edly excluding Islam from the faiths dent of Partition in 1947, which minority—and Hindus. of Muslims accused of stealing cattle the small minority of that group that
whose followers will receive special carved out a separate homeland for or eating beef in violation of pious are extremists and integrate ordi-
consideration—Hinduism, Buddhism, Muslims from British India. Hindu beliefs has increased. Anti- nary Muslims into the national
Sikhism, Jainism, Zoroastrianism These last defenses are disingenu- who cannot prove that they or their Muslim rhetoric accelerates career mainstream. Instead, Mr. Modi is
and Christianity—the government ous. Afghanistan was never part of ancestors arrived in India before advancement within Mr. Modi’s marginalizing a sizable minority of
signals that Muslim migrants aren’t British India. If the law’s purpose is 1971. The citizenship law would po- Bharatiya Janata Party. Earlier this his citizens and laying the ground-
welcome in India. to address Partition-created prob- tentially allow the estimated 1.2 mil- year, the party sent to Parliament a work for long-term instability.
Many greeted the law with alarm. lems, including it would make no lion Hindus in this group to claim In- female Hindu ascetic accused of The new law has already set off
On Twitter Pratap Bhanu Mehta, a sense. And anyone with a passing fa- dian citizenship, but the remaining bomb blasts targeting Muslim civil- angry protests in Assam and other
prominent Indian political scientist, miliarity with South Asia could tell migrants, mostly Bengali-speaking ians. Though Muslims make up one- parts of the Northeast, mostly by lo-
called it “a giant step to officially you that Pakistan’s Ahmadiyya and Muslims, face indefinite imprison- seventh of India’s population, the cals fearing a Bengali Hindu influx,
convert a constitutional democracy Shia Hazara Muslims face unspeak- ment in detention camps. Bangla- BJP does not count a single Muslim requiring the government to dis-
into an unconstitutional ethnoc- able atrocities. If India’s law is desh won’t take them back. among its 303 directly elected mem- patch troops and shut down the in-
racy.” The U.S. House Foreign Affairs driven by compassion, as its propo- The citizenship law adds to a bers of Parliament. The only Muslim ternet in some areas. The BJP’s ham-
Committee warned that “any reli- nents claim, then why does it leave widely felt anxiety among Indian in the cabinet is responsible for mi- fisted lawmaking isn’t solving
gious test for citizenship under- out some of the most violently per- Muslims, says Zainab Sikander, a nority affairs. On pro-BJP television problems; it is creating ones that fu-
mines this most basic democratic te- secuted religious minorities in the Delhi-based political analyst, in a news channels, panelists spend night ture generations will struggle to fix.

The Canadian Conservative Crack-Up

By Michael Taube missed opportunity to regain power. aggressive than his U.S. counterparts. gay marriage, but he declined to days after the vote, he was asked if
Mr. Trudeau’s reputation had col- He makes a point of separating his apologize. he’d reconsider his decision not to

A
Toronto lapsed thanks to several controver- private views from his political ambi- When it was revealed that several participate in gay-pride marches. “I
ndrew Scheer, leader of Can- sies, including a corruption scandal tions, and he emphasizes his respect Conservative candidates had previ- won’t march in parades,” he an-
ada’s Conservative Party, should known as the SNC-Lavalin affair and for Conservatives and other Canadi- ously made controversial remarks on swered, “but I will ensure that our
have been celebrating. His party three incidents of wearing blackface ans who disagree with him on abor- social issues, Mr. Scheer accepted party is as inclusive and open and
gained 26 seats in the Oct. 21 federal or other dark makeup. The prime tion, same-sex marriage and other their apologies and didn’t remove that we fight for equality rights of
election, won a plurality of the nation- minister was vulnerable, and voters such issues. all Canadians.”
wide popular vote, and reduced Prime seemed to need only a solid alterna- Even so, he’s had a hard time eas- Such equivocation on social issues
Minister Justin Trudeau’s Liberals to tive. Instead, Conservatives watched ing the minds of skeptics, in part be- Can the party recover its was typical of Canada’s Conservatives.
a minority government. Mr. Scheer fumble questions about cause his comments on social issues They’re not as ideologically cohesive
Yet 52 days later, Mr. Scheer an- his own background, including his have tended to be ambiguous. Con- cohesion after failing to as the Liberals and other parties of
nounced he would step down as party work in the insurance industry and sider the following sequence: Shortly defeat a badly damaged the left. The party includes Red To-
leader. He decided to put “my party his dual Canadian-U.S. citizenship, before the election, a video surfaced ries, who are liberal on social issues
first and my family first,” according and get dragged down by the media of Mr. Scheer speaking about mar- Justin Trudeau? and the welfare state, and Blue Tories,
to his Thursday statement in Parlia- and political opponents for his social riage in 2005. He said then that gay who favor free markets and social
ment, and wanted to ensure the next conservative values. couples “have many of the collateral conservatism. Party members often
Conservative leader would be able to Mr. Scheer is Catholic and sup- features of marriage, but they do not them. When the media hounded him engage in divisive debate, including
give 100% to the job ahead. ports religious freedom, family val- have its inherent feature, as they can- about his current positions, he didn’t over what can be debated. Last year
Mr. Scheer’s fiercest political rival ues and the rights of the unborn. not commit to the natural procre- respond directly. His typical answer Mr. Scheer urged delegates to the
turned out not to be the Liberal Party These views are well within the ation of children. They cannot, there- was that the issues were “closed” in party convention to keep a resolution
but his fellow Conservatives. For mainstream of American conserva- fore, be married.” After the media Canada and would stay that way if stating: “A Conservative government
weeks, they had fumed about a tism, but Mr. Scheer tends to be less furor, Mr. Scheer said he now accepts he became prime minister. Three will not support any legislation to
regulate abortion.” He prevailed, but
only 53% to 47%.

Notable & Quotable: Theory

Mr. Scheer was unable to survive
PUBLISHED SINCE 1889 BY DOW JONES & COMPANY a political assault from the two Tory
Rupert Murdoch Robert Thomson
Executive Chairman, News Corp Chief Executive Officer, News Corp
wings. He was too conservative for
Matt Murray William Lewis
April Doss writing for the Weekly managed to pervert justice in order the Red Tories, yet some social con-
Editor in Chief Chief Executive Officer and Publisher Standard, July 27, 2018: to spy on the Trump campaign. servative organizations turned
Neal Lipschutz Karen Miller Pensiero DOW JONES MANAGEMENT: Over time, the conspiracy theory against him in frustration that he
Deputy Editor in Chief Managing Editor Ramin Beheshti, Chief Technology Officer; [House Intelligence Committee would deepen: Since the dossier in- hadn’t gone far enough on certain
Natalie Cerny, Chief Communications Officer;
Jason Anders, Chief News Editor; Louise Story, Chief
Kamilah Mitchell-Thomas, Chief People Officer; Chairman Devin] Nunes insisted on cluded information from sources in issues or was watering down his
News Strategist, Product & Technology Officer
Edward Roussel, Chief Innovation Officer; releasing a memo that endorsed a Russia, that meant that the Hillary message.
Thorold Barker, Europe; Elena Cherney, News Christina Van Tassell, Chief Financial Officer new conspiracy theory about how a for America campaign had colluded Now that Mr. Scheer has stepped
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Gerard Baker, Editor at Large Josh Stinchcomb, Advertising Sales;
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Daniel Henninger, Deputy Editor, Editorial Page Jonathan Wright, International research into a FISA application, Carter Page. Trudeau is banking on.
Barron’s Group: Almar Latour, Publisher and sent the application to the se- It’s an exhausting theory to con-
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EDITORIAL AND CORPORATE HEADQUARTERS: bias in the information. Through gering rumors on the Internet mentator, was a speechwriter for for-
1211 Avenue of the Americas, New York, N.Y., 10036 this complicated string of subter- about the workings of the “deep mer Canadian Prime Minister
Telephone 1-800-DOWJONES
fuges, Nunes claims, the Democrats state,” believed. Stephen Harper.
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A18 | Friday, December 13, 2019 THE WALL STREET JOURNAL.

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Return of 737 MAX Fades Into Next Year

FAA lashes Boeing for return to service. tion of service in Europe and celerated end to the grounding. gers’ travel plans. The latest the FAA’s strategy to generate
The Federal Aviation Admin- elsewhere likely coming weeks The friction, following delay is likely to ratchet up public support for the plane’s
seeking to speed istration is expected to approve afterward. months of behind-the-scenes pressure on Boeing executives safety, U.S. officials are seeking
timeline; delay seen fixes to a MAX flight-control The new hurdles came into tussles between the agency and as they consider whether to to obtain at least a general en-
system and related pilot train- focus Thursday with a pair of the Chicago-based aerospace further cut or even halt MAX dorsement from those regula-
lasting until spring ing no sooner than February, statements from the FAA to giant, culminated in a meeting production at the company’s tors even if they officially clear
about two months beyond what congressional committees, call- Thursday between the FAA 737 factory in Renton, Wash. the MAX later.
BY ANDREW TANGEL Boeing recently envisioned, ing out Boeing for not provid- chief, Steve Dickson, and Boe- The latest delay, according The warnings from the FAA
AND ANDY PASZTOR people familiar with the mat- ing timely information and ing CEO Dennis Muilenburg. to industry and government of- started before Thursday’s
ter said. That for its public push The grounding of the MAX ficials familiar with the details, meeting in Washington, which
The global grounding of means the for an ac- after a crash in Ethiopia last was partly prompted by indica- was slated to include other se-
Boeing Co.’s 737 MAX is bound troubled March, the second involving tions from European and Cana- nior FAA officials and Stan
to stretch to nearly a year as MAX might the plane in five months, dian regulators that they aren’t Deal, the new head of Boeing’s
U.S. regulators chided the not carry is costing Boeing and its comfortable with the current commercial airplane unit. Mr.
plane maker for its slow deliv- passengers in airline customers billions package of software fixes and Dickson pushed back against
ery of information and warned the U.S. until of dollars and disrupting training revisions proposed by what the agency described as a
it against setting unrealistic the spring, airline passen- Boeing. As part of pattern of Boeing’s overly opti-
expectations for the jetliner’s with resump- Please turn to page B2

Grocers Liberty
Media
Bet on Smaller Sets Sights
Warehouses On iHeart
An affiliate of John Ma-
BY JAEWON KANG LLC, facilities known as Online grocery sales are expected to increase, as nearly half of U.S. lone’s Liberty Media Corp. is
microfulfillment centers typi- households digitally ordered groceries in the past year. seeking Justice Department
Food retailers are making cally range from 10,000 to permission to buy a larger
big bets on small warehouses 20,000 square feet and can ful- Share of grocery spending Online ordering by households* piece of iHeartMedia Inc., ac-
to bulk up their growing deliv- fill 4,000 orders a week. These done online
ery businesses, as supermar- warehouses can be built in By Anne Steele,
Total U.S. households
kets try different approaches three to six months and reach 8% Brent Kendall
to get groceries to customers profitability in a year. 129 million and Cara Lombardo
more efficiently. Bigger centers can be larger
Albertsons Cos., Walmart than 300,000 square feet and 7 Used grocery delivery/pickup in the past month cording to people familiar
Inc. and other chains are build- fulfill 65,000 orders a week, with the matter, a deal that
ing small fulfillment centers Jefferies said. These central- 16 million would put the nation’s largest
near existing stores and cus- ized facilities can be built in 6 radio broadcaster under the
Bought groceries online in the past month
tomers to quickly fill orders two to three years and reach same corporate umbrella as
placed online. More grocers profitability in four years. 32 the leading concert promoter
are choosing this strategy over Food sellers were slower to and satellite-radio giant Siri-
5
the larger, remote distribution embrace e-commerce than Bought groceries online in the past year usXM.
centers that Kroger Co. and other retailers because many Liberty owns a 4.8% stake
Koninklijke Ahold Delhaize of their customers still want to 54 in iHeart through Liberty Siri-
NV’s Peapod division are build- inspect fruit and steaks before 4 usXM Group; the deal now un-
ing to make deliveries over buying. That is changing der consideration could give it
wider areas. quickly. Online grocery sales Consumers typically spend less control or ownership of the
“We have a broader assort- rose 15% in 2019, according to 3 broadcaster, according to peo-
ment of fresher items, and we a survey by advisory firm Brick
on groceries when they get ple familiar with the matter.
are closer to the customers,” Meets Click. home delivery. The government is consid-
said Narayan Iyengar, senior Supermarkets are introduc- 2 Average basket size ering the request, the people
vice president of digital and e- ing the additional storage and said, with one of them cau-
commerce at Albertsons. new warehouses in part to tioning that Liberty hasn’t de-
The owner of the Safeway keep stock and couriers for de- In-store
oe $96 cided what kind of transac-
1
and Jewel-Osco chains is add- livery out of existing store tion, if any, it would proceed
ing small fulfillment facilities space, where some customers Pickup
P p 95 with should it receive permis-
at two stores in South San have complained of crowding sion. Liberty acquired its
Francisco, Calif., and San Jose, as delivery has taken off. 0 iHeart stake via debt it took
Calif., in partnership with “It’s an entire paradigm 2016 ’17 ’18 ’19* ’20 ’21 ’22
Delivery
D elivery
e e 77 on before the company re-
Takeoff Technologies Inc., shift for companies,” said FORECASTS structured, which converted to
which builds automated ware- Steve Hornyak, chief commer- equity when the broadcaster
*Data as of August
houses. Albertsons said it is es- cial officer at Fabric, a four- Sources: Brick Meets Click (spending, households); Jefferies (basket size)
emerged from bankruptcy
tablishing more of these year-old builder of small fulfill- early this year.
10,000-square-foot distribution ment centers for grocers and Liberty owns 33% of Live
centers, which each cost about other retailers. Nation Entertainment Inc.,
ISTOCK

$3 million to build. Walmart and Meijer Inc. are making it the concert giant’s
According to Jefferies Group Please turn to page B2 Please turn to page B2

Bond Analysts Clash Disney Is Blamed in ‘Frozen 2’ Flap

On Outlook for Yield BY TAKASHI MOCHIZUKI Some of the artists who en- 2,” including a unit of Dentsu false or misleading advertis-

In Sign of Confusion TOKYO—Japanese artists

hired to promote Walt Disney
dorsed “Frozen 2” had earlier
published cartoons on Twitter
promoting Disney movies such
Inc., Japan’s largest advertis-
ing and public-relations group,
Dentsu employees said.
ing, but an official at the
country’s Consumer Affairs
Agency said the agency hasn’t
BY DANIEL KRUGER The differing views reflect Co.’s movie “Frozen 2” on as “Avengers: Endgame” and Representatives of Dentsu, issued guidance on paid posts
uncertainty after this year’s Twitter said they were in- “Captain Marvel” without Disney’s Japan unit and Dis- by influencers.
Analysts are split on the di- bond rally surprised forecast- structed to hide that they mentioning a connection to a ney headquarters in California Public-relations profession-
rection of government-bond ers, many of whom had pre- were paid for the work, con- company promotion. didn’t respond to requests for als in Tokyo said it was com-
yields in 2020, a sign of confu- dicted yields to climb as inves- tradicting Disney’s initial ex- Disney said the “Frozen 2” comment. mon in Japan for companies
sion about the course of the tors sold government debt. planation that the omission case and similar examples In the U.S., regulators have to pay influencers for social-
economy and monetary policy. Instead, economic growth was accidental. were caused by failure to com- said that social-media posts media posts without disclos-
Economists surveyed last cooled, trade tensions intensi- “The agency that hired us ply with internal marketing by influential people promot- ing the relationship. “The Jap-
month by The Wall Street fied and bond yields reversed for this campaign requested guidelines. It didn’t say who ing a product or service are anese advertising industry is
Journal predicted that the a climb that had sent them to that we not label our work as failed to comply or why. problematic if the influencers divided into two parts based
yield on the benchmark 10- multiyear highs, falling to near a promotion,” said an artist The cartoonist known as are paid and don’t disclose it. on ethical standards,” said so-
year Treasury note could end all-time lows. who publishes under the name Kosame Daizu didn’t identify The Federal Trade Commis- cial-media marketing expert
next year above 3% or just Investors closely watch the Kosame Daizu in a tweet. the agency that told him to sion said in 2017 that influenc- Motohiko Tokuriki. “I am
slightly higher than 1%. The direction of the 10-year yield The artist, who has more hide the promotional nature of ers “should clearly and con- aware there are many who ha-
average forecast of 1.97% was because it is a reference rate than 100,000 followers on his work. spicuously disclose” paid bitually practice this kind of
only modestly higher than for markets, used in setting Twitter, tweeted a cartoon last Disney hired multiple agen- work. thing, knowing it might be in-
where the yield settled Thurs- borrowing costs on everything week in which he depicted cies to help promote “Frozen Japan’s consumer laws bar appropriate, but not illegal.”
day, at 1.901%. Please turn to page B11 some characters in “Frozen 2”
and reviewed the movie favor-
ably. He didn’t respond to re-

INSIDE quests for comment.

Other artists involved in
the campaign also apologized.
An artist who goes by the
name Yamato Nadeshiko
tweeted that an earlier tweet
praising “Frozen 2” wasn’t la-
beled as promotional in accor-
dance with the client’s direc-
tions.
Disney initially said it had
intended to ask the artists to
WALT DISNEY/EVERETT COLLECTION

show that the tweets were

part of an official advertising
campaign, and it called the ab-
BUSINESS LAW sence of disclosure a lapse.
Oracle won’t return to Firm that David Boies On Wednesday, Disney is-
sued a new statement ac-
a dual-CEO structure co-founded names knowledging repeated cases in
after the death this two likely which artists were hired to
year of Mark Hurd. B3 successors. B6 promote Disney movies on so-
cial media without disclosure. Artists hired to promote ‘Frozen 2’ on Twitter said they were told to hide their link to the company.
 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.

B2 | Friday, December 13, 2019 * *** 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 Facebook.A1,A2,B11,B12 Microsoft ............. B3,B12

Abrams Capital Froneri.......................B12 Morgan Stanley........B10
Management.............B6 G-H N-O
Albertsons...................B1 Goldman Sachs.........B10 Nestlé........................B12
Alibaba Group...........B10 HSBC Holdings..........B10 Nvidia........................B11
Alphabet...........A2,B3,B4 Huawei Technologies..B4 Oracle .......................... B3
Altria Group..............B12
Amazon.com...B3,B12,R8
I P
American Airlines . B2,B3 Ichigo Asset PAI Partners ............. B12
Apple....................B4,B10 Management.............B4 PayPal Holdings........B10
iHeartMedia................B1 PG&E ........................... B6
B
Imperial Brands ........ B12 S
Bank of America.......B10 Instacart......................B2
Boeing...............B1,B2,B3 Salesforce ................... B3
British American J SAP..............................B3
Tobacco ................... B12 Japan Display..............B4 Saudi Arabian OilA1,B10
Broadcom.............B4,B12 JPMorgan Chase.......B10 Sirius XM Holdings .... B2
C Juul Labs...................B12 Southwest Airlines .... B2
Caterpillar ................. B11 K Symantec .................... B4
Cigna............................B5 Knighthead Capital T-U
Cisco Systems...........B12 Management.............B6 Takeoff Technologies..B1
Citigroup....................B10 Koninklijke Ahold Target..........................B2
Costco Wholesale.......B2 Delhaize....................B1 TÜV SÜD...................A10

ALY SONG/REUTERS
Credit Suisse Group . B10 Kroger..........................B1 Twitter........................A2
D L Unilever.....................B12
Deere.........................B11 Las Vegas Sands ...... B11 United Airlines............B3
Delta Air Lines ........... B3 Liberty Media..............B1 V-W
Dow Chemical...........B11 M Vale ........................... A10
E-F McDonald's..................B3 Walmart.................B1,B2 Comparable sales rose 5% during the quarter ended Nov. 24, a period that didn’t include the busy shopping day after Thanksgiving.

Costco Posts a Sales Gain

Elliott Management ... B6 Meijer..........................B1 Walt Disney................B1
Epic Games ................. B4 Micron Technology....B11 Wynn Resorts...........B11

INDEX TO PEOPLE
BY SARAH NASSAUER quarter. Thursday. In the previous fering the service and Costco
A Gebeily, John..............A8 Montani, Mike ............ B2 The shift reduced sales by quarter, Costco’s e-commerce would rather have shoppers
Atwater, Peter..........B11 Gravante, Nicholas ..... B6 O Costco Wholesale Corp. about half a percentage point, sales rose 21.9%. come to stores to buy. On
B H Otting, Joseph..........B10 said Thursday sales rose lead- the company said. On Thanksgiving, Costco’s Thursday, executives said they
Banga, Ajay.................R2 Harrison, Natasha ...... B6 P ing into the holiday shopping Profit rose, with net income website slowed as shoppers remain skeptical of the service
Bastian, Ed..................B3 Hornyak, Steve...........B1 season, a sign that the ware- of $844 million during the rushed to grab deals and some embraced by other retailers
Peterson, Jim..............B2
Blitz, Steven.............B11 house retail chain continues to quarter, up from $767 million customers couldn’t check out. including Walmart Inc. and
I Piegza, Lindsey.........B11
Boies, David................B6 Polman, Paul...............R2
grab market share and benefit during the same period last “It was unfortunate. Despite Target Corp.
Iyengar, Narayan.........B1 from a strong economy. year. Costco earned $1.90 a all the efforts to have plenty “As it relates to buy online
Boxer, Mark.................B5 Pyle, Mike.................B11
J Comparable sales, those share, compared with $1.73 a of capacity,” said Mr. Galanti. and pickup in-store, we con-
C R
Josefowicz, Matthew.B5 from stores or digital opera- share during the like quarter Online sales from Thanks- tinue to look at what others
Callon, Scott ............... B4 Remick, Tierney..........R2
K tions open for at least 12 last year. giving through the following do and continue to scratch our
Cordiner, Ralph ........... R2 Rogers, James ............ B6
months, rose 5% during the The retailer’s e-commerce Monday climbed “in the very head,” said Mr. Galanti. “We’re
Cosset, Yael ................ B2 Keane, Jim..................R3 S-T quarter ended Nov. 24 exclud- growth slowed considerably high teens,” he said, but “we not at a point that we’re plan-
D-E Kelly, Gary...................B2 Safra Catz...................B3 ing the impact of gasoline due to the later Thanksgiving, did leave something on the ta- ning to do anything with
DeLoach, Jim...............R3 Kikuoka, Minoru..........B4 Schiller, Jonathan.......B6 prices and currency fluctua- rising 5.7%. Without the holi- ble.” that.”
Ellison, Larry...............B3 Kinsella, Peter..........B11 Tan, Hock .................... B4 tions. day shift, e-commerce sales The company has long re- Costco reported total reve-
F-G Kleintop, Jeffrey.......B11
W-Z Thanksgiving and Black Fri- would have grown around 18% sisted encouraging shoppers nue of $37.04 billion during
Krause, Tom................B4
Falkenhäll, Richard...B11 Wilson, Tom................R1 day, the busiest shopping pe- during the quarter, Chief Fi- to buy online for in-store the quarter, up from $35.07
Galanti, Richard..........B2 L-M Winston, Andrew ....... R2 riod of the year, fell a week nancial Officer Richard Galanti pickup, saying stores’ sales during the same period last
Ganenthiran, Nilam....B2 Lipton, Martin.............R1 Zuckerberg, Mark.......A2 later this year, outside of the said on a conference call growth is healthy without of- year.

Grocers Try centralized facilities take too

long to build when coming up
with a timely formula for de-
Boeing Southwest Reaches
Deal With Jet Maker
dressed Southwest’s losses in
2019. Mr. Kelly said the ground-
timeliness of data submittals
for FAA review.”
The email was reviewed by

Using Small livery is critical. Executives

have said they are sticking
with the Ocado strategy and
Criticized ing has resulted in an $830 mil-
lion reduction in operating in-
come. The two companies are
the Journal. The note added
that the “FAA’s certification re-
quirements must be 100% com-

Warehouses remain open to other models.

Big fulfillment centers that
are best suited to next-day de-
By FAA Southwest Airlines Co. and
Boeing Co. said they struck a
deal to compensate the airline
continuing to discuss how to
compensate the airline for
losses next year.
plete before return to service,”
referring to past Boeing re-
quests to recertify a new flight-
livery are already behind the for some of the damage from Boeing took a $5.6 billion control computer system be-
Continued from page B1 times as consumers now ex- Continued from page B1 the nine-month grounding of charge against its second-quar- fore all required data was
testing small fulfillment cen- pect an order to show up in as mistic projections for when the the 737 MAX jetliner. ter earnings to cover payments submitted, according to one
ters. Ahold Delhaize’s Stop & little as a few hours, said Mike MAX would win approval to re- The carrier said Thursday it to customers. The company has person familiar with the
Shop LLC said it would open Montani, an Evercore analyst. enter passenger service, ac- would share $125 million of the said insurance policies would agency’s deliberations.
several more of these ware- Smaller grocers aren’t add- cording to an email sent to proceeds with its employees. cover $500 million in customer The FAA chief reiterated
houses this year, while its Pea- ing their own delivery capabili- lawmakers by the FAA’s legisla- Southwest didn’t disclose the compensation, as well as any that he has told agency experts
pod delivery division continues ties, relying instead on compa- tive office and reviewed by The full terms of the compensation, damages paid to the families of working on the MAX review “to
to build bigger distribution nies including Instacart Inc. Wall Street Journal. which it said covered a portion the 346 victims of the two take the time they need to get
centers. Price Chopper, a chain in the “The administrator is con- of its projected financial dam- crashes. this right.”
In contrast, Kroger, the na- Northeast, formed a partner- cerned that Boeing continues ages. It said it is continuing to Icelandair Group Hf in Sep- In early November, Boeing
tion’s biggest supermarket op- ship with Instacart a year ago to pursue a return-to-service negotiate with Boeing. tember said it reached a deal said it expected the FAA to lift
erator, is building bigger distri- and now offers delivery from schedule that is not realistic “We’re pleased we were with Boeing to cover a fraction its flight ban in mid-December
bution centers for delivery, 90% of its roughly 100 stores. due to delays that have accu- able to reach a settlement—no- of what the airline said and approve related pilot train-
wagering that economies of “We don’t see the economic mulated for a variety of rea- body can be happy about the amounted to $140 million in ing in January, leading U.S. air-
scale will make the larger in- benefit to having stand-alone sons,” the email said. situation we’re in,” Gary Kelly, costs for grounding its six MAX lines to plan on resuming
vestment worthwhile. fulfillment centers,” said Jim “More concerning, the ad- Southwest’s chief executive, jets and delays to the delivery flights on the MAX in March.
“You control and you know Peterson, Price Chopper’s chief ministrator wants to directly said in an interview. of another 10. Following the latest develop-
exactly what’s in the facility,” financial officer and treasurer. address the perception that Southwest had 34 MAX jets Other U.S. carriers have said ments, American Airlines
Yael Cosset, chief digital offi- Some analysts caution that some of Boeing’s public state- in its fleet when the aircraft they are negotiating with Boe- Group Inc. said it would take
cer, said in an interview. food retailers might lose con- ments have been designed to was grounded and was due to ing but want to see how high the MAX out of its schedules
Kroger took a stake of more trol of their customer relation- force FAA into taking quicker receive dozens more over the their costs climb before reach- through April 6.
than 6% last year in U.K.-based ships when solely using ser- action.” course of the year. The settle- ing a settlement. Southwest Airlines Co. is
warehouse company Ocado vices like Instacart. Instacart The administrator’s mes- ment announced Thursday ad- —Alison Sider likely to remove the MAX from
Group PLC and said the part- shoppers are also crowding sage, according to the email, passenger schedules through at
nership would build as many aisles of stores. was to convey that the agency least early April, a spokes-
as 20 largely automated facili- Instacart, valued at roughly and manufacturer “must take grounding the U.S. MAX fleet. trator Dickson and Deputy Ad- woman for the Dallas carrier’s
ties in the U.S. They will vary $7.8 billion when it raised $871 the time to get this process “We will work with the FAA ministrator Elwell,” the com- pilot union said.
in size from 20,000 square feet million last year, delivers from right.” to support their requirements pany said. Earlier on Thursday, China’s
to more than 300,000 square over 300 supermarket chains. One of the people familiar and their timeline as we work Shortly after the meeting, aviation regulator, the first to
feet, Mr. Cosset said. “Not every grocer has the with the FAA’s plans said the to safely return the Max to ser- the FAA’s legislative office sent ground the MAX after the
Kroger is investing about desire, time or capital to build approval could slip into March vice in 2020,” Boeing said a follow-up email to lawmakers crash in Ethiopia, said it has
$55 million in the first ware- their own fulfillment center,” in part because of the regula- Thursday. “Dennis Muilenburg saying Mr. Dickson told Boeing concerns about the reliability
house with Ocado in Monroe, Instacart President Nilam Ga- tor’s aim to brief their interna- and Stan Deal had a productive that the company’s focus and security of Boeing’s pro-
Ohio. Analysts have said the nenthiran said. tional counterparts before un- meeting today with Adminis- should be on the “quality and posed changes to the aircraft.

Deal Would in debt off iHeart’s books and

turning over control of the
company to lenders and bond-
broadcast radio stations in the
U.S., also runs a concert-pro-
motion business and has been
though its Pandora acquisi-
tion, and podcasts. Revenue
rose 6% last year to $5.77 bil-

Link Sirius holders from its longtime

owners, private-equity compa-
nies Bain Capital and Thomas
in the on-demand streaming-
music market since 2016,
when it launched a pair of ser-
lion. It ended the most recent
quarter with more than 34.6
million satellite-radio sub-

And iHeart H. Lee Partners LP. The pri- vices within its existing scribers in the U.S. and Can-
SUZANNE CORDEIRO/AGENCE FRANCE-PRESSE/GETTY IMAGES

vate-equity firms took iHeart iHeartRadio app, which had ada, and the company’s shares
private in a $19.4 billion deal previously just played pro- are up over 20% this year.
in 2008 when it was known as gramming from the broadcast Live Nation, the world’s
Clear Channel Communica- stations. Revenue in the third largest concert promoter, sits
Continued from page B1 tions Inc. quarter rose 3% to $948 mil- at the forefront of a booming
largest shareholder, and 71% of The restructuring plan, lion. live-events business. It ended
satellite-radio company Sirius which reduced iHeart’s debt Sirius offers satellite-radio 2018 with $10.79 billion in rev-
XM Holdings Inc. load to $5.75 billion from $16.1 subscriptions, primarily for enue, up 11% from the year
A deal for iHeart would in- billion, transferred ownership listening in cars, but has been prior. Its stock price has risen
crease its ability to collaborate of the company to a group of expanding into ad-supported more than 40% so far this
among those businesses, po- lenders and bondholders led streaming media, mainly year.
tentially creating a bulwark by Franklin Advisers Inc.
against the rising influence of iHeart’s CEO Bob Pittman—
music-streaming companies. a veteran media executive who
Last year, Liberty orches- previously played integral
The best wallet you’ll ever use, guaranteed.
trated Sirius’s purchase of in- Lizzo performed at an iHeartRadio event in Texas last week. roles in creating and running
ternet-radio company Pandora MTV and AOL—and finance
Media Inc.—in which it also iHeart, it would represent a in February of last year made chief Rich Bressler remain in
held a controlling stake—for consolidation of the avenues an offer to pump $1.16 billion their roles.
$3 billion, another move in- by which music and other au- in cash into iHeart, weeks be- As part of the restructur-
tended to compete more effec- dio content is distributed, pro- fore it filed for bankruptcy, for ing, publicly traded outdoor-
tively against Spotify Technol- moted and monetized. a 40% stake in the reorganized advertising unit Clear Channel
ogy SA and other on-demand Justice Department anti- company. It withdrew the offer Outdoor Holdings Inc. was
music-streaming services. trust officials recently asked that June because iHeart’s re- separated from the company. The Rogue Wallet is slim, lightweight and shaped for your
Liberty Chief Executive interested parties how they sults were below expectations, Mr. Pittman said that move front pocket. We’re confident it’s the best wallet you’ll
Greg Maffei in late November might be affected by a poten- but left the door open for fu- would let iHeart focus on its ever use. Test it out, and if you disagree we’ll gladly
touted the company’s in- tial deal between a live-enter- ture discussions. The New audio business. refund your purchase. Dozens of styles to choose from,
creased focus on audio and tainment company and a radio York Post last December re- iHeart returned to the pub-
particularly its exposure to the company, according to a per- ported Liberty was seeking a lic markets in July, listing on including our Made in Maine RFID-Blocking Bison shown
“exploding” podcast market son familiar with the inquiries, roughly 35% stake in the com- the Nasdaq. Its market value here. Starting at $55.00
including through iHeart, the without mentioning Liberty, pany postbankruptcy. was just under $1 billion rogue-industries.com
No. 2 publisher by audience, Live Nation or iHeart by name. A judge in January ap- Thursday afternoon but that
according to Podtrac. If Lib- Such a deal has been ru- proved a restructuring plan, belies the company’s heft. 1.800.786.1768
erty were to gain control of mored for some time. Liberty wiping more than $10 billion iHeart, which operates 848
 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.

THE WALL STREET JOURNAL. Friday, December 13, 2019 | B3

BUSINESS NEWS

Burger
Giant
Oracle Will Stay With Sole CEO
Software company of executives who are “poten- best known for its corporate cle said, would rise roughly but in the era of cloud com-

Wins Legal reports higher profit

but disappointing
tial CEOs when both Safra and
I retire, which is not anytime
soon.” But he described the
database software, reported
$9.61 billion in revenue for the
quarter ended Nov. 30, miss-
2%, broadly in line with ana-
lysts’ projections.
The company said it is see-
puting, it has been playing
catch-up to the likes of Ama-
zon.com Inc., Microsoft Corp.

Victory revenue for quarter

two-CEO setup as unusual and
not something Oracle is look-
ing to repeat.
ing analysts’ projected $9.65
billion, according to FactSet.
Profit for the second quar-
ing strong demand and higher
conversion rates and expects
and Alphabet Inc.’s Google.
In the most recent quarter,
Oracle reported a combined
BY HEATHER HADDON BY MARIA ARMENTAL Ms. Catz now leads Oracle ter rose to $2.31 billion, or 69 $7.94 billion cloud and license
as sole CEO. Company co- cents a share. Excluding stock- revenue, just shy of analysts’
The National Labor Rela- Oracle Corp. said it won’t founder Larry Ellison, who based compensation and other
The company gave a projections of roughly $8
tions Board instructed a fed- replace its late co-CEO, Mark ceded the CEO post to Mr. items, profit rose to 90 cents a somewhat muted billion.
eral judge to approve a settle- Hurd, leaving Safra Catz as the Hurd and Ms. Catz in 2014, re- year, from 80 cents a share a Oracle has been trying to
ment in a case pertaining to sole top executive leading the mains active as chairman and year earlier.
outlook for the introduce new features to its
McDonald’s Corp.’s status as a software giant after years of chief technology officer. Analysts surveyed by Fact- current quarter. cloud, including greater
joint employer, helping shield operating with an unusual, The twin-CEO structure has Set expected a profit of 68 automation, to help lure cus-
the company from liability two-chief structure. had a mixed record at the cents a share, or 89 cents a tomers away from other ven-
from the employment prac- In the company’s first earn- small number of companies share as adjusted. dors, in particular market
tices of its hundreds of U.S. ings report since Mr. Hurd’s that have tried it over the For the current quarter, Or- strong momentum in the sec- leader Amazon.
franchisees. death in October, Oracle years. But two of Oracle’s ri- acle gave a somewhat muted ond half of this fiscal year to Shares, which have been
The decision is a victory for founder and Chairman Larry vals, Salesforce.com Inc. and outlook. It projected adjusted carry through 2021. trading near record levels in
the world’s largest fast-food Ellison said it is working to SAP SE have also adopted it profit of 95 cents to 97 cents a Oracle deftly navigated con- recent months, closed Thurs-
chain as it faces calls to im- strengthen its management over the past two years. share compared with analysts’ stant technological changes day at $56.47 and fell 2.6% in
prove working conditions at team, to build develop a group The Silicon Valley company, projected 97 cents. Sales, Ora- since it was founded in 1977; after-hours trading.
its 14,000 domestic restau-
rants. If finalized, the determi-

Delta Acquires Stake in Private-Jet Operator

nation would put more re-
sponsibility on franchisees for
McDonald’s and other compa-
nies to address the concerns
of their workers. BY DOUG CAMERON The investment in Wheels
In a split ruling, a panel of Up continues a diversification
the labor body on Thursday Delta Air Lines Inc. said it strategy at Delta that has in-
accepted a settlement to re- is buying a minority stake in cluded buying a jet-fuel refin-
solve dozens of cases brought Wheels Up, a private-jet oper- ery as well as investing in
against McDonald’s starting in ator, that will extend Delta’s overseas airlines and more-an-
2012 over employment viola- operations to more premium cillary businesses such as air-
tions. The proposed settle- passengers. craft maintenance and credit
ment would give 20 affected Wheels Up and Delta’s ex- cards.
employees back pay from fran- isting corporate-aircraft unit The strategy has helped
chisees, valued at $171,636. would together have 190 make it the most profitable of
McDonald’s agreed to pay into planes and a wider customer the three network carriers.

DANIEL SLIM/AGENCE FRANCE-PRESSE/GETTY IMAGES

a settlement fund if restaurant base than Delta’s unit, so Its shares are up 10% this
owners declined to pay resti- planes would fly empty less year, outperforming Ameri-
tution themselves, an amount often, Delta Chief Executive can Airlines Group Inc. and
the panel set at $250,000. Ed Bastian said in an inter- United Airlines Holdings
Workers in nearly 300 view. Inc.
cases said they were punished He and Wheels Up wouldn’t Both those rivals have been
after campaigning for a $15 say how much Atlanta-based hobbled by the grounding of
hourly wage and union repre- Delta is investing in the New their Boeing Co. 737 MAX
sentation at McDonald’s res- York-based company. fleets after two fatal crashes.
taurants. The complaints al- He said the move would also Delta didn’t operate any of the
leged that some of the help reduce emissions in the aircraft. Mr. Bastian said if
workers lost shifts or were private-jet business—a focus global regulators recertify the
fired. for critics of the airline indus- MAX to fly next year, its re-
The board found that the try’s efforts to tackle climate turn could add enough capac-
settlement was reasonable and change because of its larger By investing in Wheels Up, the airline is extending its operations to more premium passengers. ity across the industry to put
instructed an administrative per-passenger carbon footprint downward pressure on ticket
law judge, Lauren Esposito, to compared with commercial jet- Airlines, notably in Europe, to plant trees or invest in re- buying more fuel-efficient air- prices.
accept it. liners. Mr. Bastian said he ex- are facing mounting con- newable fuels. craft, expanding use of biofu- Delta said that it expects
Groups that brought the pects more pressure on the sumer pressure to try to ad- Mr. Bastian said Delta els and cutting single-use capacity to grow by 4% and
cases on behalf of the workers global airline industry to limit dress these concerns by doing hasn’t done enough to publi- plastics. sales to grow by 4% to 6% next
said they would appeal the de- and mitigate emissions. things such as selling carbon cize similar efforts. Like Delta, “We’ve got to get much year, with targeted earnings
cision. “The settlement is not “This is an existential offsets that passengers can other U.S. and overseas air- more specific about the off- per share of $6.75 to $7.75, in
valid,” a campaign spokes- threat to the growth of our in- purchase with their tickets. lines are focusing on reducing sets, let the passengers see line with analysts expecta-
woman said. dustry,” he said. These are used, for example, their carbon footprint through what we are doing,” he said. tions.

Barron’s wants to recognize female

leaders in finance today and those
positioned to lead the industry in
the future. If you know someone
who might fit the bill, nominate them
for the inaugural Barron’s 100 Most
Influential Women in U.S. Finance.

Nominate a Top 100 Woman now

Barrons.com/B100Women

© 2019 Dow Jones & Company, Inc. All rights reserved. 4E5019
 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.

B4 | Friday, December 13, 2019 THE WALL STREET JOURNAL.

TECHNOLOGY WSJ.com/Tech

App Maker Challenges Google Fees Broadcom

BY SARAH E. NEEDLEMAN
Forecasts gal in the case of a distribu- nesses while keeping users velopers to profit off their their market position.

The creator of “Fortnite” is

challenging Google’s policy of
tion platform with over 50%
market share,” Epic Chief Ex-
ecutive Tim Sweeney said.
safe,” Google said.
It said it expected compa-
nies that want to distribute
apps.
Other companies have
fought back or sought ways
Google’s app store policy
also is under scrutiny over-
seas. Disconnect Inc., another
Upturn in
taking a cut of payments made
for app-related purchases at a
time regulators have started
“Epic doesn’t seek a special
exception for ourselves; rather
we expect to see a general
their apps through its channel
to ”participate under the same
terms as other developers,”
around Google and Apple’s
app-store fees. In March, Spo-
tify Technology SA filed an an-
app developer, this year com-
plained to European regulators
that Google was abusing its
Earnings
scrutinizing those kind of ar- change to smartphone indus- adding they can also distribute titrust complaint against Ap- market position. Google has BY ASA FITCH
rangements between tech try practices in this regard.” their game to Android users ple in Europe, in which the called the complaint “base-
companies and their vendors. “Fortnite” is free to play without going through streaming-music company ac- less.” Broadcom Inc. promised an
Epic Games Inc. is asking and sells virtual currency for cused Apple of abusing its app “Fortnite” also is available earnings recovery in the cur-
Google to release in its app real money that users can store to limit competition on Apple devices. Apple, which rent financial year after the
store a version of “Fortnite” spend on in-game perks such against its own Apple Music. only allows distribution chip maker posted weaker
with a built-in payment sys- as avatar costumes and dance
‘Fortnite’ developer Spotify said that Apple makes through its App Store, gets a fourth-quarter figures, dented
tem that allows the developer moves. pushes payment it difficult for rival subscrip- 30% cut from Epic. by the protracted U.S. export
to keep all in-game revenue. The shooter game has been tion services to market them- Apple has generated $15.3 ban of some items to Chinese
Google, a unit of Alphabet accessible on mobile devices
system that would selves to users without using billion in app store revenue telecom giant Huawei Tech-
Inc., takes a 30% cut for the running Google’s Android op- cut out Google. Apple’s payment system. this year, while Google has nologies Co.
kind of in-game purchases erating system since last year, Apple defended its practice collected $8.3 billion, accord- Broadcom said per-share
players make on games down- though only by downloading it of taking a 30% cut of sales ing to estimates from app-ana- earnings fell to $1.97 in the fi-
loaded via its app store. from Epic’s website. Now the through its App Store in re- lytics firm Sensor Tower Inc. nal quarter of the year ended
Epic’s move effectively puts game maker wants to distrib- Google’s channel. sponse to Spotify’s criticism. “Fortnite” has been one of Nov. 3, compared with $2.64 a
Google in the uncomfortable ute the free game also via Google and Apple Inc., It has said it is entitled to take the most popular games on year earlier. The more closely
position of having to either Google’s app store, called which also charges app devel- a share of app sales because it the videogame market in the watched adjusted earnings,
approve the game and forgo a Google Play, which could help opers to distribute their soft- built the store and employs past two years. which strip out some one-time
lucrative revenue stream or broaden its reach. That is ware, account for the over- staff who review thousands of Epic formally submitted items, fell 8% to $5.39 a share,
potentially provide antitrust where Google then takes a whelming majority of sales apps for compliance with rules “Fortnite” to Google for re- in line with expectations from
regulators with evidence it 30% cut on sales. generated from download fees around privacy and content. lease this week. Apps from de- analysts surveyed by FactSet.
may be unduly pressuring “Google Play has a business and in-app purchases. The tension came as U.S. velopers that are new to The company gave an up-
smaller companies. model and billing policy that Legislators are investigat- regulators have been stepping Google Play, such as Epic, typi- beat sales forecast for the fi-
“We believe this form of ty- allow us to invest in our plat- ing whether the companies are up their investigations of cally must wait up to seven nancial year that began last
ing of a mandatory payment form and tools to help devel- stifling competition and mak- whether some of the biggest days to get a signoff from month, after reporting $5.78
service with a 30% fee is ille- opers build successful busi- ing it too challenging for de- tech companies are abusing Google. billion in revenue for its most
recent quarter. Analysts had
expected $5.77 billion. The

Supplier to Apple Drums Up Rescue Funds

company projected growth of
about 10% to roughly $25 bil-
lion, compared with 8% sales
growth in the year just ended.
BY TAKASHI MOCHIZUKI Broadcom shares were
AND PETER LANDERS lower in after-hours trading,
after rising slightly immedi-
TOKYO—A financially ately following the release of
strapped Japanese supplier of the results.
displays for Apple Inc.’s iPhone Chief Executive Hock Tan
11 said it has lined up financing said he was optimistic about
of up to ¥90 billion ($828 mil- growth in the company’s core
lion) from an investment fund semiconductor business in its
with U.S. connections. current fiscal year. The com-
Japan Display Inc. said pany, he said, would benefit
Thursday that it has agreed on from its recent acquisition of
the basic outline of an invest- cybersecurity firm Symantec
ment by a Singapore arm of Corp.’s enterprise business.
Tokyo-based Ichigo Asset Broadcom’s semiconductor
Management Ltd., which man- businesses, which account for
ages funds from U.S. univer- about four-fifths of revenue,
sity endowments and other in- fell 7% year-to-year in the fis-
vestors. cal fourth quarter, offset by a
The display maker also said rise in the software segment.
that a major customer was The chip business is likely to
ready to pitch in $200 million improve this fiscal year, said
for the rescue. People involved Mr. Tan, who promised growth
in the deal identified that of 7% in sales of core semicon-
company as Apple. ductor products. “We continue
YOSHIO TSUNODA/AFLO/ZUMA PRESS

Ichigo Asset Management’s to believe that our core semi-

chief executive, Scott Callon, conductor business is bottom-
is an American corporate-gov- ing,” he said.
ernance expert who wrote a The rollout of 5G communi-
book about the breakdown of cations networks also is likely
Japan’s high-technology indus- to drive growth, Chief Finan-
trial policy. He is expected to cial Officer Tom Krause said
assume a significant role at on a call with analysts. The
Japan Display if the invest- company’s radio-frequency
ment goes through. Japan Display, which makes iPhone 11 screens, is getting up to $828 million from an investment fund. A company presentation last year. components business, which
Earlier this year, Japan Dis- had $2.2 billion in sales in the
play said it was preparing to People involved in the talks iar with the plans. has struggled in recent years shares at ¥50 a share, with the fiscal year just ended, is likely
receive rescue funds from a said Thursday’s announcement Apple has switched to or- owing to excess supply of dis- remainder coming through to grow as smartphone makers
consortium known as Suwa, was meant to signal that Japan ganic light-emitting diode, or play panels in the industry purchases of Japan Display boost production of 5G-capa-
which at the time included in- Display had all but given up on OLED, panels for some new and Apple’s switch to OLED bonds that could be converted ble devices, he said.
vestors from China and Tai- Suwa and was now focusing on iPhone models. Japan Display panels. into stock. Broadcom has come off a
wan. The key players in the the Ichigo deal. doesn’t yet make OLED panels Japan Display said Ichigo is Ichigo would become Japan tumultuous year, buffeted, in
group later pulled out of the The rescue funding would for smartphones, although it is willing to invest ¥80 billion to Display’s top shareholder but part, by U.S. trade tensions
deal, but Japan Display’s chief stabilize Apple’s supply of liq- supplying smaller OLED dis- ¥90 billion ($737 million to hold less than 50%, this per- with China. The company, in
executive, Minoru Kikuoka, uid-crystal displays for such plays for the Apple Watch. $828 million) in the company son said. June, cut its sales forecast by
said negotiations continue. He models as the iPhone 11. The The display maker, which and that the infusion could be Japan Display shares rose $2 billion. Chinese telecom-
said the Ichigo investment company is also preparing to was created in 2012 through a completed by March. ¥4 to ¥73 in Tokyo trading equipment maker Huawei ac-
would proceed only if talks sell a lower-cost phone next government-backed merger of A person involved in the Thursday after the company counted for about $900 mil-
with Suwa were to fall year that would use LCD pan- the display units of three Jap- deal said half of Ichigo’s in- confirmed the outline of the lion of Broadcom’s sales in its
through. els, according to people famil- anese electronics companies, vestment would be in common Ichigo investment plan. previous fiscal year.

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THE WALL STREET JOURNAL. Friday, December 13, 2019 | B5

PERSONAL FINANCE

Medicare Sign-Up Delays Can Be Costly

Those unaware of the require Social Security to no-
tify people age 65 who have
rules may see gaps in yet to claim retirement bene-
coverage and face fits of Medicare’s enrollment
rules. The bill, which has bi-
financial penalties partisan support, would also
allow people who delayed sign-
BY ANNE TERGESEN ing up for Part B and must use
the enrollment period between
As more Americans post- Jan. 1 and March 31 to start
pone retirement, a growing their coverage the month after
number are experiencing they enroll, rather than in July.
Medicare enrollment problems “With more than 10,000
that can saddle them with Americans turning age 65 ev-
hefty penalties and months- ery day, we must simplify the
long coverage Medicare enrollment process
RETIREMENT gaps. and do more to help retirees
The roots of avoid costly, lifetime penal-
the problem are Medicare’s ties,” said Sen. Bob Casey (D.,
complex rules and a lack of no- Pa.), a co-sponsor of the bill.

CAITLIN O’HARA FOR THE WALL STREET JOURNAL

tice from the program explain- Medicare advocates recom-
ing the steps older workers mend that people who plan to
must take to enroll once they stay on the job past 65 consult
leave their jobs. In recent de- with their State Health Insur-
cades, Americans have re- ance Assistance Programs,
mained in the workforce lon- which provide free Medicare
ger, for reasons including help, or read the Medicare
concerns about savings and a publication “Enrolling in
desire to keep working, with Medicare Part A & Part B.”
many putting off taking Social People having enrollment
Security payments. problems may request “equita-
That has contributed to a ble relief,” which allows for
14% increase in the number of Arizona retiree Sarah Truman ‘got the shock of my life’ when she found her Medicare Part B coverage would be delayed and cost extra. immediate Part B enrollment
people paying late-enrollment without penalty. It generally
penalties between 2013 and standard premium amount— requires proof that your fail-
2017, according to government Avoiding Common fewer than 20 employees must fits Medicare would have pro- currently $135.50 a month— ure to enroll was due to an er-
statistics. sign up for Medicare Part B at vided. for every year of delay. Ms. ror, misrepresentation or inac-
There is a silver lining: Enrollment Pitfalls 65 for their primary insurance. If you have retiree medical Truman expects to pay an ad- tion on the government’s part,
From Jan. 1 to March 31 of Their employer’s plan will pro- insurance or Cobra coverage ditional 10%, or $13.55, to 20%, said Sue Greeno, an advocate
each year, individuals who vide only secondary coverage. Once an employee stops or $27.10, for Part B each at the Center for Medicare Ad-
missed key Medicare enroll- Here are two common sce- Sue Greeno, an advocate at working, he or she has eight month for the rest of her life. vocacy, who recommends re-
ment deadlines can belatedly narios in which people experi- the Center for Medicare Advo- months to sign up for Medicare “I don’t feel like I did any- cording the names of govern-
sign up, though they may face ence Part B enrollment prob- cacy, said a client who works Part B. Those who miss this thing wrong,” said Ms. Tru- ment workers you speak with,
coverage gaps and penalties. lems—and how to avoid snafus. for a small company decided window must wait until be- man. “I wasn’t cheating the and the dates of those interac-
The easiest time to sign up If your employer has fewer not to sign up for Medicare tween Jan. 1 and March 31 to system. I had insurance. It tions.
for Medicare is during a than 20 workers Part B because he assumed he sign up. Their Part B benefits makes no sense to me that I Signing up for a Part D pre-
seven-month period that starts If you or your spouse work was fully covered under his don’t go into effect until July. am being punished.” scription drug plan also gener-
three months before turning and receive health insurance on employer’s plan. After having a Late-enrollment penalties may Advocates say more people ally isn’t automatic. Individu-
65, the age most people be- the job, you can choose to en- stroke, he discovered his em- apply. are in the same situation. Ac- als can delay signing up for
come eligible for the federal roll in Medicare or remain on ployer’s plan paid only for sec- After age 65, Cobra and re- cording to the Centers for Part D beyond age 65 without
health insurance program. For the employer’s plan. ondary coverage, forcing him to tiree medical plans generally Medicare and Medicaid Ser- penalty if they have “credit-
those already collecting Social But workers at firms with pay out-of-pocket for the bene- provide secondary benefits. vices, about 700,000 of the able” prescription coverage
Security, enrollment is gener- 53.4 million people with Part B under another health plan, in-
ally automatic for Medicare paid late-enrollment penalties cluding under Cobra.
Part A, which covers hospital Medicare fully explains the to a request for comment. In Jan. 1—and her coverage in 2017, up from 609,000 in Once that creditable cover-
care, and Part B, which covers rules” or sends them a re- the past, spokespeople who wouldn’t start until July 2020. 2013. The average penalty was age is lost, individuals have 63
doctors’ visits and outpatient minder when it’s time to sign have responded to questions A diabetic who generally sees a 28% premium increase, days to buy a Part D plan or
care. Part A is typically free. up, said Frederic Riccardi, about difficulties with Medi- her doctor every three which would mean an increase pay a penalty of 1% of a base
Part B costs between $135.50 president of the nonprofit care’s enrollment rules have months, she says she now has of $37.94 a month above to- premium amount for every
and $460.50 a month this year, Medicare Rights Center. said the agency follows the trouble sleeping due to anxiety day’s standard premium. month they should have been
depending on an individual’s Enrollment rules can differ laws governing the program. over what could happen if she “This is one of the top enrolled. Individuals who miss
income. depending on whether individ- Those who run afoul of the has a serious medical problem. problems we see on our help- the 63-day window must wait
For individuals automati- uals work for a small or large rules can find themselves Late enrollment frequently line,” said Mr. Riccardi. to enroll between Oct. 15 and
cally enrolled when turning company. without coverage for months— triggers penalties that inflate In May, federal legislators Dec. 7. The coverage starts
65, said David Lipschutz, asso- In addition, while most which is what happened to Part B premiums by 10% of the introduced a bill that would Jan. 1.
ciate director at the nonprofit workers with employer-based Sarah Truman, 67, of Phoenix.
Center for Medicare Advocacy, coverage are allowed to delay A former teacher’s aide, she
“their Medicare cards show up Medicare without penalty, they chose to remain on her hus-
in the mail.” But people who must sign up within eight band’s insurance through his
delay Social Security past age months of stopping work, even former employer under Cobra
65 must sign up for Parts A if they keep their employer- rather than sign up for Medi-
and B on their own. based insurance through a re- care. About two weeks before
According to the U.S. Bu- tiree medical plan or under Co- the couple’s Cobra coverage
reau of Labor Statistics, 27% bra, a federal law that permits ended on Sept. 30, Ms. Tru-
of Americans ages 65 to 74 are workers who leave their jobs to man visited a Social Security
in the labor force, up from temporarily remain in a former office to enroll in Medicare.
17.7% in 1998. For those in that employer’s health plan. There, Ms. Truman said,

GET A CLEAR
group who delay Social Secu- A spokesman for the Cen- she “got the shock of my life”
rity, enrolling for Medicare ters for Medicare and Medic- when an agent told her that
can be complicated. aid Services, which adminis- she would not be able to sign
“Neither Social Security nor ters Medicare, didn’t respond up for Medicare Part B until

Cigna AI Product Identifies PLAN FOR YOUR

People Who Skip Medicines RETIREMENT.
BY AGAM SHAH information to electronic-med- health-insurance holders on
ical record systems for physi- their benefit plans, appoint-
Cigna Corp. plans to ex- cians. ments and health coaching.
pand a system that uses artifi- More health-care organiza- The new Health Connect
cial intelligence to identify tions are looking to artificial 360 system combines algo-
gaps in treatment of chronic intelligence to spot diseases, rithms that analyze data such
diseases, such as patients prioritize cases and improve as clinical and pharmacy infor-
skipping their medications, patient outcomes—results that mation with predictive models
and deliver personalized rec- also have the effect of lower- to generate recommendations
ommendations for patients. ing overall costs of providers. and ways to best engage a pa-
The product, called Health AI systems’ ability to learn tient, whether through an app
Connect 360, integrates data from an array of patient histo- or in person.
from a combination of sources ries, medical tests and diag- For example, collected data
and analytical tools, some de- nostic tests makes them ideal from pharmacy claims or high
veloped at Cigna and others tools for care. However, get- blood glucose level readings
brought in as part of its $54 ting access to health data re- from connected glucometers
billion acquisition of phar- quired for better outcomes can could trigger an alert in
macy-benefit manager Express be a bottleneck. Health Connect 360 that a dia-
Scripts Holding Co., completed betic patient needs help to
late last year. stay on track with medica-
Express Scripts, which be- tions. After the system was Fidelity gives you clarity about where you stand
gan developing the service
Express Scripts tested and partially deployed and can help answer retirement questions like:
two years ago, rolled out por- rolled out portions of this year, early results showed • How much might I need to cover essential
tions of it to some customers success in helping diabetic pa-
this year.
the service to some tients, the company said.
and discretionary expenses?
The complete system will customers this year. Managing chronic condi- • Am I on the right track to meet my goals?
be available next month to all tions is much less expensive
customers of Express Scripts than engaging in some kind of • What can I do to strengthen my plan?
and Cigna that offer health corrective procedure, said
benefits to employees, the “That was our concept Matthew Josefowicz, chief ex-
company said. around the acquisition of Ex- ecutive of research and advi-
Health Connect 360 was de- press Scripts—it was much sory firm Novarica Inc.
veloped for treatment of more than just simply buying “Across the health-care in-
chronic diseases, including di- a pharmacy-benefits manage- dustry, as with every industry,
abetes and heart disease, as ment [company]. It was buy- the incredible growth in data
well as for pain management. ing a set of care-management availability and ability to com-
The system aggregates medi- capabilities, and access to data municate enables new kinds of
800.FIDELITY
cal, pharmacy, lab and biomet- and intelligence that would be interventions that were just Fidelity.com
ric data—such as information very, very hard to replicate,” too cost-prohibitive to even
from glucometers, which mea- said Cigna Chief Information consider before,” Mr. Josefow-
sure blood-sugar levels—into a Officer Mark Boxer, who icz said. IMPORTANT: The projections or other information generated by the Planning & Guidance Center’s Retirement Analysis regarding
dashboard that is accessible drives the company’s AI de- To keep the focus on its the likelihood of various investment outcomes are hypothetical in nature, do not reflect actual investment results, and are not
through an online interface. ployment. core health business, Cigna re- guarantees of future results. Your results may vary with each use and over time.
The dashboard will be visi- Cigna is already using AI to cently has been seeking a Investing involves risk, including risk of loss.
ble to the service’s customers predict whether patients buyer for a unit that sells life, The trademarks and/or service marks appearing above are the property of FMR LLC and may be registered.
and to Express Scripts case might abuse or overdose on accident and disability-income Fidelity Brokerage Services LLC, Member NYSE, SIPC. © 2019 FMR LLC. All rights reserved. 874551.1.0
managers and nurses with ac- prescription opioids. Another insurance to employers for
cess rights. Cigna tool, One Guide, pro- their workers, The Wall Street
The system can also feed vides personalized help to Journal reported Tuesday.
 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.

B6 | Friday, December 13, 2019 * **** THE WALL STREET JOURNAL.

BUSINESS & FINANCE

Boies’s Firm Names Next Leaders Elliott Faults Strategy

BY SARA RANDAZZO Supported by PG&E
Since its founding, the law BY ANDREW SCURRIA holders payments, significantly
firm Boies Schiller Flexner limiting dollars that PG&E has
LLP has largely been associ- Elliott Management Corp. available to spend on and invest
ated with one person: litigator is digging in against a PG&E in critical safety upgrades and
David Boies. Corp. shareholder strategy for infrastructure hardening.”
Now, the firm Mr. Boies co- ending the utility’s bank- California Gov. Gavin
founded in the 1990s is imple- ruptcy, saying demands of Cal- Newsom has raised concerns
menting a plan to ensure it can ifornia officials wouldn’t be about aspects of PG&E’s strat-
survive long past his tenure. satisfied under the proposal. egy and whether it adheres to
Boies Schiller this week The hedge-fund manager, a California law passed over
named for the first time man- part of a group of bondholders the summer to help investor-
aging partners who don’t have seeking to take over PG&E, owned utilities in the state
their names on the door. The said Thursday a restructuring handle future wildfire liabili-
MARK KAUZLARICH/BLOOMBERG NEWS

two new leaders, New York- strategy developed by share- ties.

based Nicholas Gravante Jr. holders, management and vic- He is expected to weigh in
and London-based Natasha tims of PG&E-linked wildfires by Friday on whether he sup-
Harrison, have been tapped to would jeopardize “both the ports PG&E’s proposal and the
guide the firm into its second immediate-term and long-term wildfire-victim settlement, and
generation. health of the company and its if he doesn’t, what changes he
The announcement comes critical infrastructure.” wants made. A spokesperson
after a tumultuous period for PG&E didn’t immediately re- for the governor said recently
Mr. Boies. He was most re- spond to a request for com- he wants the state to be able
cently in the news for filing a ment. The shareholders weren’t to appoint public board mem-
defamation lawsuit against The litigator took part in several well-known cases, including representing Al Gore in the Florida recount. immediately able to comment. bers at PG&E once it exits
longtime foe Alan Dershowitz The bondholders are fight-
and for his interactions, as re- leaders pushed back against other partnerships in recent in an antitrust trial against Mi- ing to keep their chapter 11
ported in the New York Times, that notion. years. Mr. Boies has long been crosoft Corp., representing Al takeover proposal viable after
with an apparent fraudster The headlines have been one of the primary sources of Gore in the 2000 Florida presi- wildfire victims that had pre-
Bondholders are
who said he had damning ma- “temporary distractions,” Mr. revenue for Boies Schiller and dential election recount and viously backed it reached a fighting to keep
terials related to the disgraced Gravante said, but he added his name is well known be- helping win same-sex marriage $13.5 billion settlement with
financier Jeffrey Epstein. that they aren’t the driving yond legal circles. rights in California. Mr. Boies PG&E and switched to sup-
their takeover
He has also come under force behind the transition. In- “I am confident that building said he has been working for porting the rival shareholder- proposal viable.
heat for his representation of stead, the changes are about on what we as a firm do very the past decade on the best backed strategy.
movie mogul Harvey Wein- preparing the 320-lawyer firm well, and learning from our way to hand off the litigation By settling with fire victims,
stein, who faces charges of for the eventual retirements of mistakes, mine included, that firm he founded in 1997. PG&E built critical creditor
sexual assault, and for his sup- Mr. Boies, 78 years old, and the next generation of leader- Mr. Gravante, 59, and Ms. support for its proposal, which bankruptcy and a “mecha-
port of defunct blood-testing Jonathan Schiller, 73. ship will not only equal but will Harrison, 46, said there are no would protect the ownership nism” to increase their author-
company Theranos Inc. “What you need is a will- exceed what we have accom- internal calls among the part- stakes of large shareholders ity within the utility if it fails
The bad press has led some ingness from them to hand it plished to date,” Mr. Boies said. ners to push Mr. Boies aside. such as Knighthead Capital to meet safety metrics.
clients to tell partners they over,” Ms. Harrison said. He rose to fame over the de- Mr. Boies reiterated that point Management LLC and Abrams Elliott said its plan would
are wary of giving new work Successfully moving a law cades for assignments, includ- and said he and Mr. Schiller Capital Management LP. overhaul governance and man-
to the firm, a person familiar firm away from its founders is ing his successful representa- plan to retire over the next Elliott’s proposal revolves agement, limit debt to a “mod-
with the matter said. The new a challenge that has vexed tion of the Justice Department several years. around using all but a sliver of erate” level and “maintain
PG&E equity to pay off wildfire strong cash flow for spending
debts, while the company and on and investment in critical
ADVERTISEMENT its shareholders favor relying wildfire safety mitigation.”
more heavily on debt financing. “It is clear that only a reor-
The Marketplace
To advertise: 800-366-3975 or WSJ.com/classifieds
Raising more debt to cover
wildfire liabilities would protect
ganization plan that puts
PG&E in a meaningfully stron-
shareholders from taking a big- ger financial position than
ger hit. But PG&E would wind when it entered bankruptcy,
ANNOUNCEMENTS BUSINESS OPPORTUNITIES up with $10 billion more in debt while compensating wildfire
on its books than when it en- victims fairly and maintaining
 
 tered bankruptcy, leaving it as
“a sub-investment grade, junk-
true rate-neutrality, should be
allowed to move forward,” El-
 
   
 
  bond issuer,” Elliott said Thurs- liott portfolio manager Jeff
 
  
 

  
     

    
 
day. The hedge-fund manager
said servicing the new debt
Rosenbaum said.
—Peg Brickley
  
   
 


 

would eat up $1 billion annually

in “excess interest and share-
and Matt Wirz
contributed to this article.
       
   
    
  
            
  
 

  
 
 
  
   

         
  
  
 
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Kelley to Americas Post
   
 
     
  BY SUZANNE VRANICA
     
!  "   
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An outbreak involving a ro- where most of the U.S. romaine
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             ! (% + '!! !   + (* ened at least eight people in Officials have improved

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

THE WALL STREET JOURNAL. Friday, December 13, 2019 | B7

MARKETS DIGEST
EQUITIES

Dow Jones Industrial Average S&P 500 Index Nasdaq Composite Index
Last Year ago Last Year ago Last Year ago
28132.05 s 220.75, or 0.79% Trailing P/E ratio 20.94 20.40 3168.57 s 26.94, or 0.86% Trailing P/E ratio * 24.36 21.33 8717.32 s 63.27, or 0.73% Trailing P/E ratio *† 26.15 21.17
High, low, open and close for each P/E estimate * 18.65 15.52 High, low, open and close for each P/E estimate * 19.18 16.45 High, low, open and close for each P/E estimate *† 23.15 18.65
trading day of the past three months. Dividend yield 2.23 2.30 trading day of the past three months. Dividend yield * 1.85 2.01 trading day of the past three months. Dividend yield *† 0.99 1.11
All-time high 28164.00, 11/27/19 All-time high 3168.57, 12/12/19 All-time high: 8717.32, 12/12/19

Current divisor 0.14744568353097

28000 3150 8750

65-day moving average

27500 3075 8550

27000 3000 8350

26500 2925 8150

Session high
DOWN UP
t

Session open Close 26000 2850 7950

Close Open 65-day moving average

t

65-day moving average

25500 2775 7750
Session low
Bars measure the point change from session's open
25000 2700 7550
Sept. Oct. Nov. Dec. Sept. Oct. Nov. Dec. Sept. Oct. Nov. Dec.
* Weekly P/E data based on as-reported earnings from Birinyi Associates Inc.; † Based on Nasdaq-100 Index

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

Latest 52-Week % chg Most-active and biggest movers among NYSE, NYSE Arca, NYSE Amer. Volume, Advancers, Decliners
High Low Close Net chg % chg High Low % chg YTD 3-yr. ann. and Nasdaq issues from 4 p.m. to 6:30 p.m. ET as reported by electronic NYSE NYSE Amer.
Dow Jones trading services, securities dealers and regional exchanges. Minimum Total volume* 886,605,702 12,166,042
Industrial Average 28224.95 27859.87 28132.05 220.75 0.79 28164.00 21792.20 14.4 20.6 12.4 share price of $2 and minimum after-hours volume of 50,000 shares. Adv. volume* 661,789,031 5,240,940
Transportation Avg 10888.60 10657.64 10789.41 110.52 1.03 11098.99 8637.15 11.5 17.7 5.0 Most-active issues in late trading Decl. volume* 216,807,140 6,562,618
Utility Average 856.63 846.56 849.68 -5.33 -0.62 880.50 692.00 11.9 19.2 9.2 Volume After Hours Issues traded 3,058 273
Company Symbol (000) Last Net chg % chg High Low
Total Stock Market 32492.67 32107.14 32406.55 263.95 0.82 32406.55 24126.04 19.1 26.0 11.3 Advances 1,888 136
VanEck Vectors Gold Miner GDX 14,539.2 27.46 -0.20 -0.72 27.69 27.46
Barron's 400 725.75 715.56 723.82 7.33 1.02 723.82 571.68 13.2 18.7 6.2 Declines 1,094 124
SPDR S&P 500 SPY 10,753.9 318.24 1.11 0.35 318.36 316.70
Unchanged 76 13
Nasdaq Stock Market iShares MSCI Emg Markets EEM 8,044.2 44.59 0.15 0.34 44.61 43.64 New highs 215 11
Nasdaq Composite 8745.82 8633.60 8717.32 63.27 0.73 8717.32 6192.92 23.3 31.4 17.2 Danaher DHR 6,563.2 151.30 ... unch. 151.35 151.05 New lows 21 5
Nasdaq 100 8493.11 8380.09 8466.89 64.28 0.77 8466.89 5899.35 25.1 33.8 20.2 GTT Communications GTT 5,475.8 12.02 0.01 0.08 12.61 12.01 Closing Arms† 0.54 1.28
Flex Glbl Upstrm Nat Rscs GUNR 5,300.0 32.57 -0.07 -0.22 32.57 32.57 Block trades* 5,597 106
S&P
General Electric GE 5,114.6 11.50 0.06 0.52 11.50 11.35
500 Index 3176.28 3138.47 3168.57 26.94 0.86 3168.57 2351.10 19.5 26.4 12.0 Nasdaq NYSE Arca
iShares China Large-Cap FXI 4,625.2 42.90 0.12 0.28 42.90 42.06
MidCap 400 2040.93 2012.95 2036.63 20.88 1.04 2036.63 1567.40 15.8 22.5 6.6 Total volume*2,398,605,351 343,908,905
SmallCap 600 1015.30 997.70 1009.59 10.55 1.06 1009.59 793.86 13.2 19.5 6.0 Percentage gainers… Adv. volume*1,681,826,050 254,408,359
Lloyds Banking Group ADR LYG 61.3 3.35 0.15 4.69 3.40 3.18 Decl. volume* 686,422,267 89,206,571
Other Indexes
Manitowoc MTW 88.3 18.00 0.73 4.23 18.00 17.27 Issues traded 3,316 1,610
Russell 2000 1654.07 1629.86 1644.81 12.89 0.79 1644.81 1266.93 14.8 22.0 6.2
Advances 2,079 1,207
NYSE Composite 13725.35 13581.08 13697.41 117.48 0.87 13697.41 10769.83 14.8 20.4 7.0 Hanover Insurance Grp THG 55.1 144.86 5.59 4.01 144.86 139.21
Declines 1,123 391
Value Line 545.32 537.84 544.13 6.00 1.11 552.12 446.06 8.7 15.2 1.8 iSh MSCI United Kingdom EWU 103.6 34.10 0.90 2.71 34.48 33.20
Unchanged 114 12
NYSE Arca Biotech 5093.06 5030.26 5058.97 21.23 0.42 5261.79 3890.37 12.5 19.9 17.4
Adobe ADBE 686.0 313.50 7.54 2.46 317.58 300.86
New highs 326 507
NYSE Arca Pharma 640.23 634.45 638.90 4.19 0.66 638.90 535.91 7.6 12.3 10.4 ...And losers New lows 65 58
KBW Bank 114.03 110.67 113.75 3.19 2.88 113.75 80.78 27.8 32.6 7.4 Kosmos Energy KOS 630.5 5.14 -0.19 -3.56 5.40 5.14 Closing Arms† 0.76 1.12
PHLX§ Gold/Silver 100.97 98.53 99.43 -0.13 -0.13 101.76 66.14 44.6 40.7 7.4 Oracle ORCL 1,223.3 55.01 -1.46 -2.59 56.60 54.45 Block trades* 11,413 1,770
PHLX§ Oil Service 75.19 72.58 74.67 2.29 3.17 102.39 59.66 -19.9 -7.4 -26.9 Vista Outdoor VSTO 224.9 7.32 -0.18 -2.40 7.50 7.32 * Primary market NYSE, NYSE American NYSE Arca only.
PHLX§ Semiconductor 1808.50 1757.68 1806.87 47.67 2.71 1806.87 1069.39 51.3 56.4 26.8 W&T Offshore WTI 71.1 4.50 -0.11 -2.39 4.67 4.50 †(TRIN) A comparison of the number of advancing and declining
issues with the volume of shares rising and falling. An
Cboe Volatility 15.55 13.60 13.94 -1.05 -7.00 36.07 11.54 -32.5 -45.2 3.3 SM Energy SM 106.0 9.37 -0.22 -2.29 9.59 9.37 Arms of less than 1 indicates buying demand; above 1

Nasdaq PHLX Sources: FactSet; Dow Jones Market Data indicates selling pressure.

International Stock Indexes Percentage Gainers... Percentage Losers

Latest YTD
Region/Country Index Close Net chg % chg % chg Latest Session 52-Week Latest Session 52-Week
Company Symbol Close Net chg % chg High Low % chg Company Symbol Close Net chg % chg High Low % chg
World The Global Dow 3195.60 28.32 0.89 16.9 Bill.com Holdings BILL 35.50 13.50 61.36 37.75 22.00 ... RiceBran Technologies RIBT 1.39 -0.69 -33.17 3.87 1.29 -59.5
DJ Global Index 424.27 3.07 0.73 20.9 Amneal Pharmaceuticals AMRX 5.04 1.56 44.83 16.85 2.27 -69.1 Camber Energy CEI 1.56 -0.49 -23.90 4965.63 0.50 -100.0
DJ Global ex U.S. 256.67 1.60 0.63 15.3 LMP Automotive Holdings LMPX 22.25 6.87 44.67 22.95 4.90 ... Aethlon Medical AEMD 1.99 -0.47 -19.02 25.65 1.83 -89.6
Americas DJ Americas 745.80 5.95 0.80 25.6 Assembly Biosciences ASMB 23.81 6.10 34.44 25.68 8.13 4.7 SMTC SMTX 2.90 -0.67 -18.77 5.98 2.02 -20.5
Brazil Sao Paulo Bovespa 112199.74 1235.87 1.11 27.7 Arlo Technologies ARLO 3.87 0.75 24.04 11.75 2.66 -59.9 Lovesac LOVE 11.81 -2.69 -18.55 46.79 11.38 -44.3
Canada S&P/TSX Comp 16946.90 7.29 0.04 18.3 Centrus Energy LEU 7.09 1.29 22.24 8.00 1.35 340.4 Forward Pharma ADR FWP 8.12 -1.48 -15.42 11.48 4.97 19.8
Mexico S&P/BMV IPC 43195.19 … Closed 3.7 Ciena CIEN 42.62 7.21 20.36 46.78 30.77 22.1 Q&K Intl ADR QK 11.13 -1.97 -15.04 20.44 10.43 ...
Chile Santiago IPSA 3443.24 21.84 0.64 –8.5 Diebold Nixdorf DBD 9.30 1.57 20.31 14.66 2.41 243.2 Taitron Components TAIT 3.24 -0.51 -13.55 7.65 1.63 79.1
0.33 Innovative Sols & Support ISSC 5.45 0.91 20.04 5.94 2.02 168.5 Owens & Minor OMI 6.15 -0.93 -13.14 8.43 2.43 -9.0
EMEA Stoxx Europe 600 407.57 1.35 20.7
0.48 PhaseBio Pharmaceuticals PHAS 3.86 0.59 18.04 16.65 2.56 5.8 Spectrum Pharmaceuticals SPPI 8.70 -1.30 -13.00 12.77 6.22 -24.9
Eurozone Euro Stoxx 399.52 1.91 21.6
Belgium Bel-20 3931.65 10.80 0.28 21.2 Lumber Liquidators LL 11.18 1.70 17.93 14.44 6.59 10.0 Aquestive Therapeutics AQST 6.70 -1.00 -12.99 10.00 2.95 -16.0
Denmark OMX Copenhagen 20 1117.24 2.26 0.20 25.3 Franchise Group FRG 17.30 2.59 17.57 17.30 8.85 44.0 Ikonics IKNX 5.29 -0.74 -12.23 9.20 5.05 -40.8
France CAC 40 5884.26 23.39 0.40 24.4 Calyxt CLXT 7.09 1.04 17.19 19.30 3.55 -25.0 Direxion S&P Oil & Gas Br DRIP 69.89 -9.41 -11.87 130.85 37.15 5.3
Germany DAX 13221.64 74.90 0.57 25.2 LAIX ADR LAIX 2.81 0.38 15.64 14.10 2.01 -68.4 Direxion Natl Gas Bear 3x GASX 53.60 -7.19 -11.83 94.22 24.50 44.7
0.08 15.6 Spring Bk Pharmaceuticals SBPH 3.95 0.53 15.50 11.90 2.75 -60.7 Akero Therapeutics AKRO 20.28 -2.72 -11.83 30.30 16.06 ...
Israel Tel Aviv 1691.56 1.30
Italy FTSE MIB 23390.95 235.30 1.02 27.7
Netherlands AEX 599.71 0.75 0.13 22.9
Most Active Stocks Volume Movers Ranked by change from 65-day average*
Russia RTS Index 1496.96 33.81 2.31 40.1 Volume % chg from Latest Session 52-Week Volume % chg from Latest Session 52-Week
Company Symbol (000) 65-day avg Close % chg High Low Company Symbol (000) 65-day avg Close % chg High Low
South Africa FTSE/JSE All-Share 55824.08 57.63 0.10 5.9
Spain IBEX 35 9468.50 76.00 0.81 10.9 iShares MSCI Emg Markets EEM 132,168 139.3 44.44 1.74 44.84 38.04 Forward Pharma ADR FWP 305 3017 8.12 -15.42 11.48 4.97
Sweden OMX Stockholm 667.55 4.33 0.65 27.1 General Electric GE 99,851 93.8 11.44 4.28 11.84 6.51 KraneShares Elc Vehicles KARS 160 2464 23.15 1.60 23.21 17.22
Switzerland Swiss Market 10451.36 46.05 0.44 24.0 SPDR S&P 500 SPY 95,890 61.7 317.13 0.86 317.99 233.76 Brigham Minerals MNRL 5,639 2341 18.30 -1.51 23.29 17.51
2.03 20.6 Advanced Micro Devices AMD 86,390 70.2 42.59 7.90 42.62 16.03 ProShs UltrShrt Semicon SSG 277 1714 15.55 -5.10 47.52 15.55
Turkey BIST 100 110114.66 2192.98
0.79 8.1
Danaher DHR 73,715 1184.1 151.30 1.09 153.02 94.59 Tuscan Holdings II THCA 501 1564 9.82 0.31 10.00 9.69
U.K. FTSE 100 7273.47 57.22
U.K. FTSE 250 20793.03 145.92 0.71 18.8 Finl Select Sector SPDR XLF 68,418 47.9 30.82 1.95 30.91 22.05 iPath Bloom Cocoa Sub TR NIB 739 1549 29.51 -0.99 31.29 23.77
Chesapeake Energy CHK 65,976 -15.3 0.78 5.03 3.57 0.55 Flex Glbl Upstrm Nat Rscs GUNR 6,236 1489 32.64 0.80 33.78 28.03
Asia-Pacific
VanEck Vectors Gold Miner GDX 65,535 11.4 27.66 -0.18 30.96 19.90 Global X Copper Miners COPX 749 1266 19.81 3.12 23.54 15.83
Australia S&P/ASX 200 6708.80 –43.84 –0.65 18.8
Bank of America BAC 64,812 28.6 34.68 3.09 34.81 22.66 Invsc DWA Healthcare Mom PTH 85 1210 90.54 0.10 91.95 64.36
China Shanghai Composite 2915.70 –8.72 –0.30 16.9
iShares China Large-Cap FXI 62,262 163.6 42.78 1.91 45.96 37.66 Danaher DHR 73,715 1184 151.30 1.09 153.02 94.59
Hong Kong Hang Seng 26994.14 348.71 1.31 4.4
* Volumes of 100,000 shares or more are rounded to the nearest thousand * Common stocks priced at $2 a share or more with an average volume over 65 trading days of at least
India S&P BSE Sensex 40581.71 169.14 0.42 12.5 5,000 shares =Has traded fewer than 65 days
Japan Nikkei Stock Avg 23424.81 32.95 0.14 17.0
Singapore Straits Times 3194.67 21.78 0.69 4.1 Track the Markets
South Korea Kospi 2137.35 31.73 1.51 4.7 Compare the performance of selected CURRENCIES & COMMODITIES
Taiwan TAIEX 11836.42 135.65 1.16 21.7 global stock indexes, bond ETFs,
Thailand SET 1563.85 12.03 0.78 0.00
currencies and commodities at Currencies
WSJ.com/TrackTheMarkets
Sources: FactSet; Dow Jones Market Data
U.S.-dollar foreign-exchange rates in late New York trading
US$vs, US$vs,
Thurs YTDchg Thurs YTDchg
CREDIT MARKETS Country/currency in US$ per US$ (%) Country/currency
Vietnam dong
in US$ per US$ (%)
.00004315 23175 –0.1
Americas
Argentina peso .0167 59.7257 58.6 Europe
Consumer Rates and Returns to Investor Benchmark
Treasury Yields
yield curve Forex Race Brazil real .2444 4.0909 5.4 Czech Rep. koruna .04361 22.930 2.3

U.S. consumer rates Selected rates and

Yield toRates
maturity of current bills, Yen, euro vs. dollar; dollar vs. Canada dollar
Chile peso
.7585 1.3185
.001302 768.10
–3.3
10.7
Denmark krone
Euro area euro
.1490 6.7135 3.1
1.1132 .8984 3.0
notes and bonds major U.S. trading partners .000297 3372.00 Hungary forint .003377 296.15 5.8
New car loan Colombiapeso 3.8
A consumer rate against its
Ecuador US dollar 1 1 unch Iceland krona .008141 122.84 5.7
benchmark over the past year 4.00% Mexico peso .0525 19.0550 –3.0 Norway krone .1101 9.0791 5.1
Bankrate.com avg†: 4.44% 8%
Uruguay peso .02633 37.9800 17.3 Poland zloty .2597 3.8503 2.9
First Command Bank 2.99% Russia ruble .01594 62.741 –9.4
One year ago 3.00 s Asia-Pacific
5.60% Fort Worth, TX 888-763-7600 4 Sweden krona .1065 9.3933 6.1
t Yen Australian dollar .6910 1.4472 2.1
t Think Mutual Bank 2.99% Switzerland franc 1.0155 .9847 0.3
5.20 2.00 China yuan .1424 7.0206 2.1
0 Turkey lira .1727 5.7912 9.5
Prime rate Rochester, MN 800-288-3425 Hong Kong dollar .1281 7.8036 –0.4
Ukraine hryvnia .0424 23.5650 –15.0
India rupee .01417 70.557 1.4
3.19%
t
4.80 PNC Bank 1.00 –4 s UK pound 1.3164 .7596 –3.1
s Indonesia rupiah .0000713 14025 –2.5
Washington, DC 888-PNC-BANK Tradeweb ICE Thursday Close WSJ Dollar index Japan yen .009149 109.30 –0.3 Middle East/Africa
t Euro
4.40 Cambridge Savings Bank 3.24% 0.00 –8 Kazakhstan tenge .002600 384.61 0.03 Bahrain dinar 2.6524 .3770 0.02
New car loan
Cambridge, MA 888-418-5626 1 3 6 1 2 3 5 710 30 Macau pataca .1244 8.0403 –0.4 Egypt pound .0620 16.1180 –10.0
4.00 2019 Malaysia ringgit .2404 4.1600 0.7 Israel shekel .2873 3.4806 –6.9
First Savings Bank of Hegewisch 3.50% month(s) years
J FMAM J J A S O N D New Zealand dollar .6598 1.5156 1.8 Kuwait dinar 3.2943 .3036 0.1
Chicago, IL 773-646-4200 maturity Pakistan rupee .00645 155.033 10.9 Oman sul rial 2.5976 .3850 –0.01
2019
Sources: Tradeweb ICE U.S. Treasury Close; Tullett Prebon; Dow Jones Market Data Philippines peso .0198 50.551 –3.7 Qatar rial .2747 3.640 0.1
Yield/Rate (%) 52-Week Range (%) 3-yr chg Singapore dollar .7385 1.3541 –0.6 Saudi Arabia riyal .2667 3.7502 –0.04
Interest rate Last (l)Week ago Low 0 2 4 6 8 High (pct pts)
Corporate Borrowing Rates and Yields South Korea won .0008526 1172.89 5.3 South Africa rand .0690 14.4973 0.9
Federal-funds rate target 1.50-1.75 1.50-1.75 1.75 l 2.25 1.25 Sri Lanka rupee .0055282 180.89 –1.1
Yield (%) 52-Week Total Return (%) Taiwan dollar .03307 30.237 –1.1 Close Net Chg % Chg YTD%Chg
Prime rate* 4.75 4.75 4.75 l 5.50 1.25 Bond total return index Close Last Week ago High Low 52-wk 3-yr Thailand baht .03312 30.190 –6.6 WSJ Dollar Index 90.33 0.06 0.07 0.74
Libor, 3-month 1.89 1.89 1.89 l 2.82 0.93
U.S. Treasury, Barclays 2267.760 1.850 1.760 2.850 1.510 8.19 3.41 Sources: Tullett Prebon, Dow Jones Market Data
Money market, annual yield 0.57 0.57 0.53 l 0.78 0.31
2.280 18.66
Five-year CD, annual yield 1.41 1.42 1.41 l 2.07 0.19 U.S. Treasury Long, Barclays 4033.840 2.210 3.140 1.880 7.89
Commodities
30-year mortgage, fixed† 3.85 3.81 3.60 l 4.70 -0.28 Aggregate, Barclays 2118.360 2.350 2.310 3.470 2.060 9.54 4.09 Thursday 52-Week YTD
Pricing trends on someClose
raw materials, or commodities
Net chg % Chg High Low % Chg % chg
15-year mortgage, fixed† 3.33 3.26 3.14 l 4.04 0.02 Fixed-Rate MBS, Barclays 2136.380 2.520 2.550 3.550 2.200 7.12 3.20
Jumbo mortgages, $484,350-plus† 4.21 4.15 4.15 l 4.72 -0.38 DJ Commodity 627.90 5.37 0.86 639.65 572.87 2.69 9.61
High Yield 100, ICE BofAML 3166.028 4.663 5.015 7.825 4.663 10.52 5.79
Five-year adj mortgage (ARM)† 4.35 4.14 3.94 l 4.78 0.77 TR/CC CRB Index 182.92 1.42 0.78 189.66 167.89 -0.06 7.72
Muni Master, ICE BofAML 565.504 1.616 1.638 2.637 1.459 7.74 4.40 Crude oil, $ per barrel 59.18 0.42 0.71 66.30 42.53 12.55 30.32
New-car loan, 48-month 4.44 4.41 4.41 l 4.81 1.43
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 873.795 4.886 5.003 7.085 4.886 13.33 6.07 Natural gas, $/MMBtu 2.328 0.085 3.79 4.124 2.070 -43.55 -20.82
banks.† Excludes closing costs.
Sources: FactSet; Dow Jones Market Data; Bankrate.com Sources: J.P. Morgan; S&P Dow Jones Indices; Bloomberg Barclays; ICE BofAML Gold, $ per troy oz. 1466.70 -2.70 -0.18 1550.30 1237.00 18.03 14.74

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B8 | Friday, December 13, 2019 THE WALL STREET JOURNAL.

COMMODITIES WSJ.com/commodities

Futures Contracts Open

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

Metal & Petroleum Futures March'20 371.50 380.25 371.25 377.75 6.50 796,957 Cotton (ICE-US)-50,000 lbs.; cents per lb. British Pound (CME)-£62,500; $ per £
Oats (CBT)-5,000 bu.; cents per bu. March 65.76 67.38 65.57 67.17 1.29 118,047 Dec 1.3199 1.3231 1.3051 1.3139 –.0069 128,206
Contract Open March 293.00 303.75 293.00 302.75 9.00 5,325 May 66.92 68.32 66.66 68.11 1.16 34,821 March'20 1.3239 1.3278 1.3091 1.3179 –.0070 136,627
Open High hi lo Low Settle Chg interest May 291.25 299.75 289.50 299.50 9.50 262 Orange Juice (ICE-US)-15,000 lbs.; cents per lb. Swiss Franc (CME)-CHF 125,000; $ per CHF
Copper-High (CMX)-25,000 lbs.; $ per lb. Jan 98.40 98.50 97.10 97.45 –.80 12,493 Dec 1.0178 1.0196 1.0127 1.0145 –.0043 29,632
Soybeans (CBT)-5,000 bu.; cents per bu.
Dec 2.7840 2.8075 2.7605 2.7895 0.0070 2,411 March 101.20 101.35 99.90 100.10 –.95 4,967 March'20 1.0249 1.0267 1.0198 1.0216 –.0045 47,333
Jan 893.00 901.75 888.25 898.25 4.75 241,265
March'20 2.7945 2.8145 2.7635 2.7965 0.0070 151,078 March 907.50 916.00 902.50 912.50 4.50 281,621 Australian Dollar (CME)-AUD 100,000; $ per AUD
Gold (CMX)-100 troy oz.; $ per troy oz. Soybean Meal (CBT)-100 tons; $ per ton. Interest Rate Futures Dec .6873 .6913 .6868 .6900 .0011 87,126
Dec 1475.10 1484.60 1463.70 1466.70 –2.70 728 March'20 .6887 .6929 .6883 .6914 .0010 110,957
Dec 294.20 294.60 292.90 292.60 –.70 439
Feb'20 1479.20 1491.60 1468.20 1472.30 –2.70 501,128 Ultra Treasury Bonds (CBT) - $100,000; pts 32nds of 100% Mexican Peso (CME)-MXN 500,000; $ per MXN
March'20 299.50 301.80 297.40 298.70 –.60 160,098
April 1484.20 1496.70 1474.20 1477.90 –2.70 92,174 Dec 186-250 188-010 183-170 184-190 –3-15.0 2,778 Dec .05228 .05251 s .05224 .05239 .00010 134,455
Soybean Oil (CBT)-60,000 lbs.; cents per lb.
June 1490.70 1502.20 1479.90 1483.10 –2.70 63,367 March'20 186-290 187-060 182-200 183-230 –3-16.0 1,216,526 March'20 .05170 .05192 s .05162 .05180 .00012 216,431
Dec 31.64 31.95 31.27 32.03 .80 43
Aug 1494.20 1506.90 1485.10 1488.40 –2.70 17,679 Treasury Bonds (CBT)-$100,000; pts 32nds of 100% Euro (CME)-€125,000; $ per €
March'20 31.69 32.54 s 31.69 32.51 .80 205,231
Dec 1511.20 1514.00 1494.10 1497.50 –2.60 10,409 Dec 159-190 159-230 156-300 157-180 –2-04.0 10,354 Dec 1.1135 1.1156 1.1104 1.1115 –.0027 197,982
Palladium (NYM) - 50 troy oz.; $ per troy oz. Rough Rice (CBT)-2,000 cwt.; $ per cwt.
Jan 1241.50 1245.00 1237.00 1243.00 … 6,053 March'20 158-240 159-000 156-050 156-250 –2-04.0 990,256 March'20 1.1204 1.1226 1.1175 1.1185 –.0027 398,307
Dec 1915.00 1915.00 s 1915.00 1914.10 26.80 44 Treasury Notes (CBT)-$100,000; pts 32nds of 100%
March 1264.00 1269.00 1260.50 1267.50 1.00 3,459
March'20 1886.40 1919.90 1883.70 1914.20 29.10 23,925 129-085 129-130 128-080 128-140 –27.5 22,282
June 1881.90 1912.70 s 1881.00 1908.70 29.00 2,201
Wheat (CBT)-5,000 bu.; cents per bu. Dec Index Futures
Dec 529.75 544.00 528.75 539.25 8.50 161 March'20 129-080 129-140 128-050 128-125 –28.5 3,600,378
Sept 1903.60 1903.60 s 1903.60 1903.20 29.10 135 5 Yr. Treasury Notes (CBT)-$100,000; pts 32nds of 100% Mini DJ Industrial Average (CBT)-$5 x index
Platinum (NYM)-50 troy oz.; $ per troy oz. March'20 518.00 534.25 516.25 530.25 11.00 203,086
Wheat (KC)-5,000 bu.; cents per bu. Dec 118-167 118-220 118-002 118-042 –13.2 24,794 Dec 27933 28230 s 27856 28131 207 96,186
Dec ... ... ... 942.70 5.30 23
March 428.00 446.50 428.00 442.75 12.00 160,132 March'20 118-262 118-305 118-067 118-112 –14.7 4,167,387 March'20 27927 28225 s 27853 28130 211 11,642
Jan'20 941.60 951.40 937.30 944.80 5.30 64,553
May 435.50 453.75 435.50 450.25 12.50 44,724 2 Yr. Treasury Notes (CBT)-$200,000; pts 32nds of 100% S&P 500 Index (CME)-$250 x index
Silver (CMX)-5,000 troy oz.; $ per troy oz. Dec 107-172 107-196 107-129 107-147 –3.0 33,956 Dec 3146.70 3175.50 s 3138.00 3167.90 24.80 28,904
Dec 16.830 17.045 16.740 16.845 0.101 656 Cattle-Feeder (CME)-50,000 lbs.; cents per lb.
Jan 142.775 143.025 141.775 142.550 –.225 18,169 March'20 107-232 107-254 107-175 107-195 –3.8 3,498,662 March'20 3143.50 3179.00 s 3143.00 3171.00 25.20 1,085
March'20 16.930 17.185 16.820 16.949 0.100 159,918
Crude Oil, Light Sweet (NYM)-1,000 bbls.; $ per bbl. March 143.525 143.650 142.600 143.450 –.225 15,569 30 Day Federal Funds (CBT)-$5,000,000; 100 - daily avg. Mini S&P 500 (CME)-$50 x index
Cattle-Live (CME)-40,000 lbs.; cents per lb. Dec 98.4425 98.4475 98.4425 98.4425 .0025 263,399 Dec 3144.00 3177.50 s 3137.25 3168.00 25.00 2,474,973
Jan 58.88 59.72 58.75 59.18 0.42 235,868
Dec 120.400 120.650 119.950 120.425 –.150 12,081 Jan'20 98.4350 98.4450 98.4350 98.4400 .0050 443,840 March'20 3146.75 3180.25 s 3140.25 3171.00 25.25 530,280
Feb 58.77 59.61 58.67 59.06 0.41 348,901
March 58.50 59.30 58.40 58.76 0.40 259,108 Feb'20 125.100 125.550 124.650 125.100 –.225 167,481 10 Yr. Del. Int. Rate Swaps (CBT)-$100,000; pts 32nds of 100% Mini S&P Midcap 400 (CME)-$100 x index
April 58.14 58.90 58.03 58.36 0.38 122,380 Hogs-Lean (CME)-40,000 lbs.; cents per lb. Dec 97-250 97-310 96-210 96-260 –1-01.0 64,622 Dec 2016.30 2042.60 s 2012.30 2037.60 21.30 76,138
June 57.25 58.01 57.20 57.53 0.38 199,473 Dec 60.700 61.050 60.500 61.000 .300 12,348 March'20 102-150 102-205 101-085 101-125 –1-03.0 37,949 March'20 2023.70 2045.30 s 2014.80 2040.60 21.90 2,668
Dec 54.98 55.60 54.90 55.28 0.39 205,097 Feb'20 67.700 69.250 67.200 68.650 .925 118,319 Eurodollar (CME)-$1,000,000; pts of 100% Mini Nasdaq 100 (CME)-$20 x index
NY Harbor ULSD (NYM)-42,000 gal.; $ per gal. Lumber (CME)-110,000 bd. ft., $ per 1,000 bd. ft. Dec 98.1025 98.1075 98.0975 98.0975 –.0050 1,557,691 Dec 8407.50 8497.00 s 8381.00 8465.25 59.75 197,684
Jan 1.9316 1.9657 1.9295 1.9508 .0220 90,916 Jan 396.80 403.10 396.20 397.80 1.20 1,938 March'20 98.2850 98.2950 98.2400 98.2500 –.0300 1,592,158 March'20 8431.75 8522.00 s 8405.75 8491.50 61.50 19,988
Feb 1.9307 1.9642 1.9285 1.9500 .0219 77,589 March 406.50 411.80 405.70 407.50 1.70 858 June 98.3700 98.3900 98.3100 98.3250 –.0450 1,294,089 Mini Russell 2000 (CME)-$50 x index
Gasoline-NY RBOB (NYM)-42,000 gal.; $ per gal. Milk (CME)-200,000 lbs., cents per lb. Dec 98.4500 98.4750 98.3500 98.3750 –.0700 1,213,611 Dec 1635.00 1657.10 s 1628.20 1645.70 11.80 469,520
Jan 1.6300 1.6532 1.6239 1.6283 .0022 104,872 Dec 19.46 19.47 19.41 19.43 .06 4,559 March'20 1637.90 1660.00 s 1631.10 1648.60 12.00 35,978
Feb 1.6370 1.6587 1.6307 1.6350 .0028 81,619 Jan'20 18.22 18.30 18.03 18.24 .05 4,445 Currency Futures Mini Russell 1000 (CME)-$50 x index
Natural Gas (NYM)-10,000 MMBtu.; $ per MMBtu. Cocoa (ICE-US)-10 metric tons; $ per ton. Dec 1751.70 1754.20 s 1734.50 1749.80 13.60 7,217
Jan 2.248 2.348 2.244 2.328 .085 253,513 Dec 2,609 2,609 2,609 2,609 –47 41 Japanese Yen (CME)-¥12,500,000; $ per 100¥ March'20 1732.10 1752.00 s 1732.10 1751.30 14.20 915
Feb 2.247 2.341 2.244 2.320 .077 240,629 March'20 2,570 2,570 2,512 2,521 –47 128,206 Dec .9214 .9222 .9137 .9148 –.0071 69,942 U.S. Dollar Index (ICE-US)-$1,000 x index
March 2.206 2.290 2.200 2.271 .071 238,669 Coffee (ICE-US)-37,500 lbs.; cents per lb. March'20 .9268 .9277 .9191 .9202 –.0072 125,175 Dec 97.07 97.52 97.03 97.38 .33 31,877
April 2.153 2.217 2.144 2.200 .052 121,001 Dec 135.20 137.00 s 134.85 135.90 2.05 303 Canadian Dollar (CME)-CAD 100,000; $ per CAD March'20 96.64 97.10 96.60 96.96 .34 15,942
May 2.171 2.230 2.161 2.214 .046 103,309 March'20 135.70 139.00 s 135.00 137.25 2.05 122,933 Dec .7589 .7597 .7580 .7586 –.0009 92,053
Oct 2.306 2.354 2.298 2.340 .038 71,590 Sugar-World (ICE-US)-112,000 lbs.; cents per lb. March'20 .7595 .7602 .7584 .7590 –.0010 79,797 Source: FactSet
March 13.38 13.55 13.34 13.52 .10 456,544
Agriculture Futures May 13.48 13.59 13.42 13.58 .08 205,556

Corn (CBT)-5,000 bu.; cents per bu.

Sugar-Domestic (ICE-US)-112,000 lbs.; cents per lb.
March 25.85 25.85 25.85 25.90 –.10 2,432
Bonds | WSJ.com/bonds
Dec 358.25 368.75 358.25 367.00 9.25 807 May 26.20 26.20 26.20 26.20 –.05 1,525
Tracking Bond Benchmarks
Return on investment and spreads over Treasurys and/or yields paid to investors compared with 52-week
Cash Prices WSJ.com/commodities Thursday, December 12, 2019 highs and lows for different types of bonds
These prices reflect buying and selling of a variety of actual or “physical” commodities in the marketplace— Total Total
return YTD total Yield (%) return YTD total Yield (%)
separate from the futures price on an exchange, which reflects what the commodity might be worth in future close return (%) Index Latest Low High close return (%) Index Latest Low High
months. Mortgage-Backed Bloomberg Barclays
Thursday Thursday Thursday Broad Market Bloomberg Barclays
Platinum,Engelhard fabricated n.a. Wheat,No.2 soft red,St.Louis-bp,u 5.9200 2118.36 8.4 U.S. Aggregate 2.350 2.060 3.470 2136.38 6.0 Mortgage-Backed 2.520 2.200 3.550
Energy Palladium,Engelhard industrial 1943.0 Wheat - Hard - KC (USDA) $ per bu-u 4.4025
Palladium,Engelhard fabricated n.a. Wheat,No.1soft white,Portld,OR-u 5.9350 U.S. Corporate Indexes Bloomberg Barclays 2089.90 5.5 Ginnie Mae (GNMA) 2.500 2.090 3.510
Coal,C.Aplc.,12500Btu,1.2SO2-r,w 61.900
Coal,PwdrRvrBsn,8800Btu,0.8SO2-r,w 11.800 Aluminum, LME, $ per metric ton *1751.5 3120.59 13.8 U.S. Corporate 2.930 2.770 4.300 1258.57 6.1 Fannie mae (FNMA) 2.530 2.250 3.560
Copper,Comex spot 2.7895 Food
Metals Iron Ore, 62% Fe CFR China-s 93.8 Beef,carcass equiv. index 2873.50 9.5 Intermediate 2.530 2.360 4.020 1935.03 6.2 Freddie Mac (FHLMC) 2.530 2.230 3.590
Shredded Scrap, US Midwest-s,m 271 choice 1-3,600-900 lbs.-u 192.53
Gold, per troy oz Steel, HRC USA, FOB Midwest Mill-s 558 4514.70 23.1 Long term 3.640 3.480 4.930 565.50 7.0 Muni Master 1.616 1.459 2.637
select 1-3,600-900 lbs.-u 175.95
Engelhard industrial 1479.00 Broilers, National comp wtd. avg.-u,w 0.8259 634.46 10.1 Double-A-rated 2.430 2.190 3.640 398.64 7.7 7-12 year 1.579 1.386 2.632
Engelhard fabricated n.a.
Fibers and Textiles
Butter,AA Chicago 1.9550
Handy & Harman base 1467.80 Burlap,10-oz,40-inch NY yd-n,w 0.5200 Cheddar cheese,bbl,Chicago 176.00 823.87 15.4 Triple-B-rated 3.220 3.110 4.670 452.75 8.9 12-22 year 1.918 1.741 3.054
Handy & Harman fabricated 1629.26 Cotton,1 1/16 std lw-mdMphs-u 0.6467 Cheddar cheese,blk,Chicago 185.75
LBMA Gold Price AM *1468.05 Cotlook 'A' Index-t *75.35 Milk,Nonfat dry,Chicago lb. 125.75
High Yield Bonds ICE Data Services 440.75 9.9 22-plus year 2.396 2.185 3.548
LBMA Gold Price PM *1466.80 Hides,hvy native steers piece fob-u 38.000 Coffee,Brazilian,Comp 1.3081 462.08 13.2 High Yield Constrained 5.563 5.563 8.107 Global Government J.P. Morgan†
Krugerrand,wholesale-e 1526.72 Wool,64s,staple,Terr del-u,w n.a. Coffee,Colombian, NY 1.6689
Maple Leaf-e 1541.40 Eggs,large white,Chicago-u 1.3250 425.62 6.5 Triple-C-rated 11.888 10.558 13.784 583.28 6.1 Global Government 1.050 0.690 1.680
American Eagle-e 1541.40 Grains and Feeds Flour,hard winter KC 13.60
Mexican peso-e 1777.97 Hams,17-20 lbs,Mid-US fob-u 0.89 3166.03 13.1 High Yield 100 4.663 4.663 7.825 803.65 3.9 Canada 1.720 1.260 2.210
Barley,top-quality Mnpls-u n.a.
Austria crown-e 1441.93 Bran,wheat middlings, KC-u 134 Hogs,Iowa-So. Minnesota-u 61.23
417.24 12.8 Global High Yield Constrained 5.341 5.341 7.561 401.57 7.3 EMU§ 0.496 0.109 1.261
Austria phil-e 1541.40 Corn,No. 2 yellow,Cent IL-bp,u 3.6700 Pork bellies,12-14 lb MidUS-u 1.0950
Silver, troy oz. Corn gluten feed,Midwest-u,w 129.0 Pork loins,13-19 lb MidUS-u 0.8856 326.59 10.6 Europe High Yield Constrained 2.823 2.749 4.869 763.19 6.1 France 0.270 -0.160 0.880
Engelhard industrial 17.0000 Corn gluten meal,Midwest-u,w 398.1 Steers,Tex.-Okla. Choice-u n.a.
Engelhard fabricated n.a. Cottonseed meal-u,w 253 Steers,feeder,Okla. City-u,w 158.00 U.S Agency Bloomberg Barclays 538.31 3.7 Germany -0.140 -0.590 0.340
Handy & Harman base 16.8750 Hominy feed,Cent IL-u,w 108 5.7
Fats and Oils 1762.63 U.S Agency 1.930 1.700 2.990 297.78 2.0 Japan 0.200 -0.070 0.420
Handy & Harman fabricated 21.0940 Meat-bonemeal,50% pro Mnpls-u,w 173
LBMA spot price *£12.6700 Oats,No.2 milling,Mnpls-u 3.2025 Corn oil,crude wet/dry mill wtd. avg.-u,w 30.5000 1555.09 4.2 10-20 years 1.820 1.620 2.890 598.69 4.4 Netherlands -0.020 -0.490 0.460
(U.S.$ equivalent) *16.6600 Rice, Long Grain Milled, No. 2 AR-u,w 25.25 Grease,choice white,Chicago-h 0.2300
Coins,wholesale $1,000 face-a 12434 Sorghum,(Milo) No.2 Gulf-u 7.2688 Lard,Chicago-u n.a. 3814.33 12.7 20-plus years 2.420 2.010 3.440 1003.61 7.2 U.K. 1.150 0.730 1.650
Other metals SoybeanMeal,Cent IL,rail,ton48%-u 295.20 Soybean oil,crude;Centl IL-u 0.3181
0.2625 2715.08 10.7 Yankee 2.710 2.470 3.970 873.80 13.4 Emerging Markets ** 4.886 4.886 7.085
LBMA Platinum Price PM *926.0 Soybeans,No.1 yllw IL-bp,u 8.8300 Tallow,bleach;Chicago-h
Platinum,Engelhard industrial 947.0 Wheat,Spring14%-pro Mnpls-u 6.6300 Tallow,edible,Chicago-u n.a. *Constrained indexes limit individual issuer concentrations to 2%; the High Yield 100 are the 100 largest bonds † In local currency § Euro-zone bonds
** EMBI Global Index Sources: ICE Data Services; Bloomberg Barclays; J.P.Morgan
KEY TO CODES: A=ask; B=bid; BP=country elevator bids to producers; C=corrected; E=Manfra,Tordella & Brooks; G=ICE; H=American Commodities Brokerage Co;
M=monthly; N=nominal; n.a.=not quoted or not available; R=SNL Energy; S=Platts-TSI; T=Cotlook Limited; U=USDA; W=weekly, Z=not quoted. *Data as of 12/11
Source: WSJ Market Data Group
Global Government Bonds: Mapping Yields
Yields and spreads over or under U.S. Treasurys on benchmark two-year and 10-year government bonds in
Exchange-Traded Portfolios | WSJ.com/ETFresearch selected other countries; arrows indicate whether the yield rose(s) or fell (t) in the latest session
Closing Chg YTD Country/ Yield (%) Spread Under/Over U.S. Treasurys, in basis points
Largest 100 exchange-traded funds, latest session ETF Symbol Price (%) (%) Coupon (%) Maturity, in years Latest(l)-2 -1 0 1 2 3 4 Previous Month ago Year ago Latest Prev Year ago

Thursday, December 12, 2019 Closing Chg YTD SPDR DJIA Tr DIA 281.95 0.80 20.9 1.500 U.S. 2 1.675 s l 1.605 1.658 2.779
ETF Symbol Price (%) (%) SPDR S&PMdCpTr MDY 371.86 1.08 22.9 1.750 10 1.902 s l 1.800 1.918 2.914
Closing Chg YTD
ETF Symbol Price (%) (%) SPDR S&P 500 SPY 317.13 0.86 26.9
iShMSCI EAFE EFA 69.18 0.67 17.7 2.000 Australia 2 0.759 t l 0.810 0.870 1.957 -79.5 -82.2
SPDR S&P Div SDY 107.67 0.94 20.3 -91.6
CnsmrDiscSelSector XLY 123.06 0.88 24.3 iShMSCI EAFE SC SCZ 62.22 0.27 20.1
TechSelectSector XLK 88.90 1.07 43.4 2.750 10 1.141 t l 1.164 1.294 2.457 -63.6 -45.7
CnsStapleSelSector XLP 62.56 –0.08 23.2 iShMSCIEmgMarkets EEM 44.44 1.74 13.8 -76.1
UtilitiesSelSector XLU 62.88 –0.43 18.8
60.77 1.84 6.0 iShMSCIJapan EWJ 60.57 0.25 19.5
EnSelectSectorSPDR XLE
VanEckGoldMiner GDX 27.66 –0.18 31.2 0.000 France 2 -0.583 s l -0.621 -0.576 -0.431 -225.7 -222.6 -321.0
FinSelSectorSPDR XLF 30.82 1.95 29.4 iShNatlMuniBd MUB 114.00 –0.17 4.5
VangdInfoTech VGT 237.43 0.97 42.3 0.000 10 0.041 s l -0.008 0.053 0.727 -180.8 -218.7
HealthCareSelSect XLV 100.95 0.93 16.7 iShPfd&Incm PFF 37.10 0.05 8.4 -186.1
VangdSC Val VBR 136.16 1.00 19.4
IndSelSectorSPDR XLI 81.93 0.89 27.2 iShRussell1000Gwth IWF 171.81 0.55 31.2
iShRussell1000 IWB 175.75 0.86 26.7
VangdSC Grwth VBK 195.25 0.47 29.7 0.000 Germany 2 -0.619 s l -0.629 -0.625 -0.558 -229.4 -223.5 -333.6
InvscQQQI QQQ 206.51 0.75 33.9
VangdDivApp VIG 123.38 0.69 26.0
InvscS&P500EW RSP 114.36 1.05 25.1 iShRussell1000Val IWD 135.89 1.13 22.4 0.000 10 -0.267 s l -0.320 -0.250 0.282 -216.9 -212.0 -263.2
VangdFTSEDevMk VEA 43.71 0.78 17.8
InvscS&P500LowVol SPLV 57.10 –0.23 22.4 iShRussell2000Gwth IWO 211.64 0.61 26.0
iSh3-7YTreasuryBd IEI 125.57 –0.41 3.4 iShRussell2000 IWM 163.96 0.86 22.4
VangdFTSE EM VWO 43.74 1.37 14.8 0.050 Italy 2 -0.170 s l -0.181 -0.099 0.916 -184.4 -178.7 -186.2
VangdFTSE Europe VGK 57.30 0.77 17.9
iShCoreDivGrowth DGRO 41.77 1.09 25.9 iShRussell2000Val IWN 127.69 1.12 18.7 3.000 10 1.241 s l 1.209 1.214 3.013 -66.1 -59.1 9.9
iShRussell3000 IWV 185.66 0.79 26.4 VangdFTSEAWxUS VEU 53.30 0.93 16.9
iShCoreMSCIEAFE IEFA 65.07 0.65 18.3
iShCoreMSCIEmgMk IEMG 53.31 1.72 13.1 iShRussellMid-Cap IWR 58.89 0.80 26.7 VangdGrowth VUG 177.69 0.49 32.3 0.100 Japan 2 -0.121 t l -0.112 -0.171 -0.138 -179.6 -171.7 -291.6
VangdHlthCr VHT 188.53 0.81 17.4
iShCoreMSCITotInt IXUS 61.58 0.95 17.2 iShRussellMCValue IWS 93.68 0.92 22.7 0.100 10 -0.018 t l -0.003 -0.036 0.057 -192.0 -180.3 -285.6
iShS&P500Growth IVW 190.13 0.58 26.2 VangdHiDiv VYM 93.22 1.16 19.5
iShCoreS&P500 IVV 318.97 0.89 26.8
iShCoreS&P MC IJH 203.99 1.11 22.8 iShS&P500Value IVE 128.89 1.17 27.4 VangdIntermBd BIV 87.13 –0.49 7.2 0.050 Spain 2 -0.380 s l -0.396 -0.380 -0.103 -205.4 -200.1 -288.1
83.24 20.1 iShShortCpBd IGSB 53.54 –0.17 3.7 VangdIntrCorpBd VCIT 91.08 –0.32 9.9
iShCoreS&P SC IJR 1.08
VangdLC VV 145.65 0.84 26.8
0.600 10 0.457 s l 0.415 0.447 1.424 -144.5 -138.5 -149.0
iShS&PTotlUSStkMkt ITOT 71.66 0.73 26.3 iShShortTreaBd SHV 110.52 0.01 0.2
iShCoreUSAggBd AGG 112.36 –0.43 5.5 iShTIPSBondETF TIP 116.34 –0.49 6.2 VangdMC VO 175.81 0.73 27.2 3.750 U.K. 2 0.598 s l 0.574 0.561 0.744 -107.7 -103.1 -203.5
iShSelectDividend DVY 104.81 1.00 17.4 iSh1-3YTreasuryBd SHY 84.57 –0.09 1.1 VangdMC Val VOE 118.40 1.08 24.3
VangdMBS VMBS 53.14 –0.21 3.2
1.625 10 0.822 s l 0.776 0.809 1.141 -108.0 -102.4 -177.3
iShEdgeMSCIMinEAFE EFAV 75.45 0.09 13.2 iSh7-10YTreasuryBd IEF 110.51 –0.79 6.1
iShEdgeMSCIMinUSA USMV 64.85 0.25 23.8 iSh20+YTreasuryBd TLT 137.45 –1.65 13.1 VangdRealEst VNQ 90.33 –1.35 21.1 Source: Tullett Prebon
iShEdgeMSCIUSAQual QUAL 99.80 0.75 30.0 iShRussellMCGrowth IWP 150.29 0.51 32.2 VangdS&P500ETF VOO 291.33 0.88 26.8
50.93 ... 1.1 iShUSTreasuryBdETF GOVT 25.97 –0.54 5.4 VangdST Bond BSV 80.49 –0.19 2.4
iShFloatingRateBd
iShGoldTr
FLOT
IAU 14.05 –0.43 14.3 JPM UltShtIncm JPST 50.47 0.02 0.7 VangdSTCpBd VCSH 80.86 –0.15 3.7 Corporate Debt
127.56 13.1 101.63 –0.01 0.7 VangdSC VB 163.92 0.85 24.2
iShiBoxx$InvGrCpBd LQD –0.46 PIMCOEnhShMaturity MINT Price moves by a company's debt in the credit markets sometimes mirror and sometimes anticipate, moves in
iShiBoxx$HYCpBd HYG 87.52 0.23 7.9 SPDR BlmBarcHYBd JNK 109.07 0.25 8.2 VangdTotalBd BND 83.81 –0.48 5.8
iShIntermCorpBd IGIB 57.82 –0.40 10.3 SPDR Gold GLD 138.43 –0.35 14.2 VangdTotIntlBd BNDX 57.96 –0.24 6.8 that same company’s share price.
iShJPMUSDEmgBd EMB 113.36 0.01 9.1 SchwabIntEquity SCHF 33.07 0.71 16.6 VangdTotIntlStk VXUS 55.20
161.33
0.99
0.82
16.9
26.4
Investment-grade spreads that tightened the most…
iShMBSETF MBB 107.76 –0.27 3.0 SchwabUS BrdMkt SCHB 75.38 0.83 25.8 VangdTotalStk VTI
Spread*, in basis points Stock Performance
iShMSCI ACWI ACWI 78.63 0.89 22.6 SchwabUS Div SCHD 57.51 0.99 22.4 VangdTotlWrld VT 80.00 0.92 22.2 Issuer Symbol Coupon (%) Maturity Current One-day change Last week Close ($) % chg
iShMSCIBrazil EWZ 45.80 1.96 19.9 SchwabUS LC SCHX 75.29 0.83 26.1 VangdValue VTV 119.29 1.13 21.8
Truist Financial TFC 4.800 Sept. 1, ’49 154 –42 n.a. 56.08 4.47
Credit Agricole S.A. ACAFP 6.875 Sept. 23, ’49 215 –24 n.a. ... ...
Borrowing Benchmarks | WSJ.com/bonds Ally Financial ALLY 4.125 Feb. 13, ’22 79 –22 91 31.92 1.27
Costco Wholesale COST 2.750 May 18, ’24 12 –19 31 297.34 0.69
Nestle Holdings NESNVX 2.375 Nov. 17, ’22 24 –17 n.a. ... ...
Money Rates December 12, 2019 Deutsche Bank AG DB 4.875 Dec. 1, ’32 414 –15 443 7.57 4.27
Liberty Mutual LIBMUT 4.569 Feb. 1, ’29 101 –15 n.a. ... ...
Key annual interest rates paid to borrow or lend money in U.S. and international markets. Rates below are a Ford Motor F 4.346 Dec. 8, ’26 206 –14 228 9.32 2.31
guide to general levels but don’t always represent actual transactions.
…And spreads that widened the most
Week —52-WEEK— Week —52-WEEK—
Inflation Latest ago High Low Latest ago High Low General Electric GE 5.000 Jan. 21, ’49 272 21 289 11.44 4.28
Nov. index Chg From (%) JPMorgan Chase JPM 3.125 Jan. 23, ’25 59 18 63 138.02 2.86
Federal funds Commercial paper (AA financial)
level Oct. '19 Nov. '18 Pitney Bowes PBI 4.700 April 1, ’23 400 17 n.a. 4.21 –7.88
Effective rate 1.5500 1.5600 2.4800 1.5500 90 days 1.77 1.69 2.78 1.63 Bunge Limited Finance BG 4.350 March 15, ’24 144 12 n.a. … …
U.S. consumer price index High 1.6000 1.6000 3.0000 1.5200
All items 257.208 –0.05 2.1
Libor American Express AXP 2.500 Aug. 1, ’22 45 8 44 122.64 1.66
Low 1.5200 1.4500 2.4400 1.4000
Core 265.108 0.02 2.3 One month 1.73975 1.71013 2.52238 1.69113 Costco Wholesale COST 2.250 Feb. 15, ’22 20 8 n.a. 297.34 0.69
Bid 1.5300 1.5400 2.4400 1.5200 1.89363 1.88500 2.82375 1.88500
Three month Walt Disney DIS 7.750 Jan. 20, ’24 63 6 n.a. 147.76 0.12
International rates Offer 1.5500 1.5900 2.5000 1.5400 Six month 1.88638 1.88813 2.90788 1.87863 Energy Transfer Operating ETP 5.300 April 15, ’47 268 6 278 ... ...
One year 1.93288 1.92263 3.11238 1.85313
Treasury bill auction
Week 52-Week
Euro Libor
High-yield issues with the biggest price increases…
Latest ago High Low 4 weeks 1.540 1.500 2.470 1.500
Bond Price as % of face value Stock Performance
13 weeks 1.520 1.560 2.465 1.520 One month -0.521 -0.508 -0.407 -0.522 Issuer Symbol Coupon (%) Maturity Current One-day change Last week Close ($) % chg
Prime rates 26 weeks 1.520 1.565 2.505 1.520 Three month -0.435 -0.449 -0.324 -0.482
U.S. 4.75 4.75 5.50 4.75 Six month -0.391 -0.396 -0.288 -0.474 Tullow Oil TLWLN 6.250 April 15, ’22 89.083 6.08 100.250 ... ...
Canada 3.95 3.95 3.95 3.95 One year -0.286 -0.290 -0.159 -0.428 Antero Resources AR 5.000 March 1, ’25 78.625 5.88 64.750 2.92 9.77
Secondary market
Japan 1.475 1.475 1.475 1.475 Diebold DBD 8.500 April 15, ’24 90.750 5.88 83.000 9.30 20.31
Value 52-Week
Policy Rates Fannie Mae Latest Traded High Low Chesapeake Energy CHK 7.000 Oct. 1, ’24 53.075 5.08 46.500 0.78 5.03
Euro zone 0.00 0.00 0.00 0.00 30-year mortgage yields DTCC GCF Repo Index Callon Petroleum CPE 6.375 July 1, ’26 100.000 5.00 n.a. 4.44 4.96
Switzerland 0.50 0.50 0.50 0.50 30 days 3.278 3.305 4.310 2.871 Treasury 1.568 58.620 6.007 1.568 Eagle Intermediate Global Holding EAGRUY 7.500 May 1, ’25 78.000 5.00 n.a. ... ...
Britain 0.75 0.75 0.75 0.75
60 days 3.289 3.313 4.328 2.890 MBS 1.584 80.530 6.699 1.584 Hilcorp Energy I HILCRP 5.000 Dec. 1, ’24 94.628 3.88 89.250 ... ...
Australia 0.75 0.75 1.50 0.75 Southwestern Energy SWN 7.750 Oct. 1, ’27 89.375 3.88 84.531 2.12 5.47
Overnight repurchase Other short-term rates Weekly survey
Latest Week ago Year ago
…And with the biggest price decreases
U.S. 1.56 1.61 3.40 1.50
Week 52-Week Fresh Market TFM 9.750 May 1, ’23 50.000 –3.50 n.a. ... ...
U.S. government rates Latest ago high low Freddie Mac Encana ECACN 5.150 Nov. 15, ’41 97.961 –2.19 n.a. ... ...
30-year fixed 3.73 3.68 4.63 HCA HCA 5.500 June 15, ’47 114.104 –1.94 115.182 143.58 0.74
Discount Call money 15-year fixed 3.19 3.14 4.07 Staples SPLS 10.750 April 15, ’27 99.375 –1.63 103.688 ... ...
2.25 2.25 3.00 2.25 3.50 3.50 4.25 3.50 Five-year ARM 3.36 3.39 4.04
Arcelormittal MTNA 4.250 July 16, ’29 102.927 –1.39 102.529 ... ...
Notes on data: Noble Holding International NE 5.250 March 15, ’42 29.000 –1.25 30.375 … …
U.S. prime rate is the base rate on corporate loans posted by at least 70% of the 10 largest U.S. banks, and is effective October 31, 2019. Other prime rates Teck Resources TCKBCN 6.000 Aug. 15, ’40 109.925 –1.02 109.575 ... ...
aren’t directly comparable; lending practices vary widely by location; Discount rate is effective October 31, 2019. DTCC GCF Repo Index is Depository Trust CyrusOne CONE 3.450 Nov. 15, ’29 99.991 –1.01 100.841 60.90 –1.84
& Clearing Corp.'s weighted average for overnight trades in applicable CUSIPs. Value traded is in billions of U.S. dollars. Federal-funds rates are Tullett
Prebon rates as of 5:30 p.m. ET. *Estimated spread over 2-year, 3-year, 5-year, 10-year or 30-year hot-run Treasury; 100 basis points=one percentage pt.; change in spread shown is for Z-spread.
Sources: Federal Reserve; Bureau of Labor Statistics; DTCC; FactSet; Note: Data are for the most active issue of bonds with maturities of two years or more
Tullett Prebon Information, Ltd. Sources: MarketAxess Corporate BondTicker; Dow Jones Market Data
 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.

THE WALL STREET JOURNAL. Friday, December 13, 2019 | B9

BIGGEST 1,000 STOCKS

Net Net Net Net Net Net Net
How to Read the Stock Tables Footnotes: Stock Sym Close Chg Stock Sym Close Chg Stock Sym Close Chg Stock Sym Close Chg Stock Sym Close Chg Stock Sym Close Chg Stock Sym Close Chg
The following explanations apply to NYSE, s-New 52-week high.
CharterComms CHTR 469.60 3.73 t Dropbox DBX 16.75 -0.49 GeneralDynamics GD 180.47 1.20 KirklandLakeGold KL 42.68 0.35 s NewmontGold NEM 41.12 0.22 RobertHalf RHI 61.99 1.10 3M MMM 168.56 -0.18
NYSE Arca, NYSE American and Nasdaq Stock t-New 52-week low.
Market listed securities. Prices are composite dd-Indicates loss in the most recent CheckPoint CHKP 113.77 0.24 DukeEnergy DUK 89.56 0.56 GeneralElec GE 11.44 0.47 Knight-Swift KNX 38.06 0.26 NewsCorp B NWS 14.03 0.49 Rockwell ROK 205.47 2.21 Tiffany TIF 133.57 0.14
quotations that include primary market trades four quarters. Chemed CHE 436.37 0.87 DukeRealty DRE 34.31 -0.51 GeneralMills GIS 51.66 0.08 Kohl's KSS 49.12 1.42 NewsCorp A NWSA 13.79 0.48 RogersComm B RCI 48.00 0.13 s Toro TTC 81.39 1.20
as well as trades reported by Nasdaq BX FD-First day of trading. CheniereEnergy LNG 59.46 -0.11 Dunkin' DNKN 75.50 -0.11 GeneralMotors GM 36.10 0.86 KoninklijkePhil PHG 47.46 -0.20 NextEraEnergy NEE 233.90 -1.88 Roku ROKU 139.57 -6.13 TorontoDomBk TD 55.67 0.42
(formerly Boston), Chicago Stock Exchange, h-Does not meet continued listing CheniereEnerPtrs CQP 39.74 0.31 DuPont DD 66.19 1.86 Genesee&Wyoming GWR 111.26 0.19 KoreaElcPwr KEP 11.80 -0.12 NielsenHoldings NLSN 20.00 0.37 Rollins ROL 33.24 -0.23 Total TOT 53.13 0.45
Cboe, NYSE National and Nasdaq ISE. standards Chevron CVX 118.81 2.58 Dynatrace DT 23.82 -0.19 Genmab GMAB 22.21 -0.75 KraftHeinz KHC 31.94 0.34 s Nike NKE 97.72 0.54 RoperTech ROP 346.75 0.03 ToyotaMotor TM 141.60 -0.02
The list comprises the 1,000 largest lf-Late filing Chewy CHWY 27.95 1.07 ENI E 30.41 0.33 Genpact G 41.14 0.19 Kroger KR 28.20 0.18 NiSource NI 26.67 -0.22 RossStores ROST 116.45 1.60 TractorSupply TSCO 98.27 1.24
companies based on market capitalization. q-Temporary exemption from Nasdaq ChinaLifeIns LFC 13.49 0.27 EOG Rscs EOG 76.71 2.04 Gentex GNTX 28.94 0.58 LATAMAirlines LTM 11.16 0.04 NobleEnergy NBL 22.94 0.91 RoyalBkCanada RY 78.81 0.13 TradeDesk TTD 246.40 -4.08
requirements. ChinaMobile CHL 38.81 0.42 EPAM Systems EPAM 206.74 -1.10 GenuineParts GPC 105.73 1.48 LINE LN 48.26 0.35 Nokia NOK 3.57 0.10 RoyalBkScotland RBS 6.16 0.14 Tradeweb TW 44.68 -0.50
Underlined quotations are those stocks with s LKQ
large changes in volume compared with the t-NYSE bankruptcy ChinaPetrol SNP 57.55 1.23 E*TRADE ETFC 46.03 1.10 Gildan GIL 28.75 ... LKQ 36.01 0.23 NomuraHoldings NMR 5.18 -0.01 RoyalCaribbean RCL 124.99 1.67 TransDigm TDG 567.58 -2.47
v-Trading halted on primary market. ChinaUnicom CHU 8.85 0.12 EastWestBncp EWBC 48.15 2.14 GileadSciences GILD 67.63 0.48 s LPL Financial LPLA 93.00 0.86 Nordson NDSN163.00 -4.00 RoyalDutchA RDS.A 57.76 0.36 TransUnion TRU 84.52 -0.03
issue’s average trading volume.
vj-In bankruptcy or receivership or Chipotle CMG 811.20-11.54 EastmanChem EMN 79.95 2.92 GSK GSK 45.93 -0.36 L3HarrisTech LHX 196.28 -2.20 Nordstrom JWN 39.69 0.86 RoyalDutchB RDS.B 57.60 0.29 Travelers TRV 135.61 0.98
Boldfaced quotations highlight those issues being reorganized under the Chubb CB 153.68 1.71 s Eaton ETN 94.45 1.06 GlobalPayments GPN 175.07 0.28 LabCpAm LH 169.16 1.74 NorfolkSouthern NSC 190.51 -0.50 RoyalGold RGLD 114.31 -1.67 Trimble TRMB 40.46 0.84
whose price changed by 5% or more if their Bankruptcy Code, or securities ChunghwaTel CHT 37.06 0.27 eBay EBAY 35.31 0.39 s GlobeLife GL 106.35 1.46 LamResearch LRCX 284.70 9.30 s NorthernTrust NTRS 109.88 2.28 Ryanair RYAAY 84.35 -0.15 Trip.com TCOM 33.21 1.24
previous closing price was $2 or higher. assumed by such companies. Church&Dwight CHD 69.55 0.15 Ecolab ECL 185.18 0.07 GoDaddy GDDY 67.61 1.46 LamarAdv LAMR 86.41 -0.54 NorthropGrum NOC 345.90 -2.81 SAP SAP 136.70 1.79 s TruistFinl TFC 56.08 2.40
Cigna CI 193.56 1.81 Ecopetrol EC 19.59 0.23 s GoldmanSachs GS 226.05 4.86 s LambWeston LW 84.11 -0.27 s NortonLifeLock NLOK 26.18 -0.20 S&P Global SPGI 270.29 -1.86 Twilio TWLO 96.86 0.63
Wall Street Journal stock tables reflect composite regular trading as of 4 p.m. and CincinnatiFin CINF 106.18 0.86 EdisonInt EIX 71.45 -0.08 Graco GGG 50.88 0.97 LasVegasSands LVS 68.70 3.26 NorwegCruise NCLH 56.13 0.72 SBA Comm SBAC 228.05 -7.72 Twitter TWTR 30.30 -0.25
changes in the closing prices from 4 p.m. the previous day. Cintas CTAS 259.25 1.20 EdwardsLife EW 230.70 0.38 s Grainger GWW 338.80 9.28 Lear LEA 130.11 3.63 Novartis NVS 93.06 0.02 s SEI Investments SEIC 65.70 0.93 TylerTech TYL 280.73 1.31
CiscoSystems CSCO 45.67 1.39 ElancoAnimal ELAN 27.48 0.69 Grifols GRFS 22.73 0.05 Leggett&Platt LEG 51.86 0.71 NovoNordisk NVO 56.50 -0.36 SK Telecom SKM 22.56 0.12 TysonFoods TSN 87.51 -0.98
s Citigroup C 77.05 1.50 ElbitSystems ESLT 166.23 -1.47 GuardantHealth GH 72.53 1.75 Leidos LDOS 91.19 -0.89 Novocure NVCR 77.84 -1.06 SLGreenRealty SLG 88.63 -0.90 UBS Group UBS 12.16 0.25
Thursday, December 12, 2019 Net Net s CitizensFin CFG 40.56 1.42 ElectronicArts EA 105.09 1.89 Guidewire GWRE 105.43 -1.91 Lennar B LEN.B 46.06 -1.47 Nucor NUE 58.11 -0.01 SS&C Tech SSNC 58.89 0.32 UDR UDR 46.38 -0.43
Net Stock Sym Close Chg Stock Sym Close Chg s EmersonElec EMR 76.97 1.24
CitrixSystems CTXS 110.30 0.85 HCA Healthcare HCA 143.58 1.05 Lennar A LEN 58.06 -1.66 Nutanix NTNX 32.61 0.70 StoreCapital STOR 37.40 -1.16 UGI UGI 44.07 0.66
Stock Sym Close Chg AnalogDevices ADI 117.81 1.96 Bio-RadLab A BIO 362.69 10.81 Clorox CLX 152.26 0.13 Enbridge ENB 38.26 -0.39 HDFC Bank HDB 63.44 0.25 LennoxIntl LII 259.70 1.32 Nutrien NTR 46.90 0.53 SVB Fin SIVB 251.21 11.79 US Foods USFD 40.10 -0.16
Anaplan PLAN 50.44 -1.12 s Bio-RadLab B BIO.B 361.54 18.56 Coca-Cola KO 54.14 0.19 EncompassHealth EHC 70.58 -0.09 HD Supply HDS 40.39 0.91 LeviStrauss LEVI 18.41 0.39 s NVIDIA NVDA 224.07 6.73 Sabre SABR 22.40 0.22 Uber UBER 28.69 0.27
A B C AngloGoldAsh AU 20.21 -0.29 Biogen BIIB 293.85 1.62 Coca-Cola Euro CCEP 49.64 -0.53 s EnelAmericas ENIA 10.81 0.15 HP HPQ 20.43 0.36 s LibertyBroadbandA LBRDA 119.77 1.22 Salesforce.com CRM 158.59 2.20 Ubiquiti UI 188.64 -3.86
s ABB ABB 23.62 0.68
AB InBev BUD 77.77 -1.00 BioMarinPharm BMRN 80.90 2.13 Cognex CGNX 53.99 1.54 EnelChile ENIC 4.63 0.04 HSBC HSBC 37.93 0.77 LibertyBroadbandC LBRDK 121.12 1.23 O P Q s Sanofi SNY 49.51 0.50 UltaBeauty ULTA 258.87 7.23
AnnalyCap NLY 9.35 -0.03 BlackKnight BKI 62.35 -0.10 CognizantTech CTSH 61.77 1.09 EnergyTransfer ET 12.64 0.48 Haemonetic HAE 117.17 -0.38 LibertyGlobal A LBTYA 21.63 0.08 SantanderCons SC 23.70 0.56 UnderArmour C UA 17.51 ...
ACADIA Pharm ACAD 44.52 -0.49 OGE Energy OGE 43.14 0.05
Anthem ANTM 284.42 3.82 s BlackRock BLK 502.12 8.21 ColgatePalm CL 67.23 -0.23 Entegris ENTG 49.78 1.08 Halliburton HAL 24.30 0.92 LibertyGlobal C LBTYK 20.64 0.14 SareptaTherap SRPT 100.47 -0.98 UnderArmour A UAA 19.29 0.09
ADT ADT 8.43 -0.02 ONEOK OKE 72.91 0.32
Aon AON 205.88 0.71 s Blackstone BX 54.17 -0.75 ColumbiaSportswr COLM 92.85 0.66 Entergy ETR 116.92 -1.26 HarleyDavidson HOG 38.25 0.68 LibertyFormOne C FWONK 44.04 -1.13 Sasol SSL 18.59 0.15 Unilever UN 59.64 -0.25
AECOM ACM 43.35 0.53 Comcast A CMCSA 43.01 0.94 EnterpriseProd EPD 28.16 0.49 OReillyAuto ORLY 441.20 -3.45
Apache APA 22.04 0.76 Boeing BA 346.29 -3.71 HartfordFinl HIG 61.28 0.36 LibertyFormOne A FWONA 41.75 -1.26 Schlumberger SLB 39.07 0.67 Unilever UL 59.49 -0.14
AES AES 18.93 0.02 OccidentalPetrol OXY 38.25 0.71
ApartmtInv AIV 51.00 -0.53 BookingHldgs BKNG 1948.48 22.60 Comerica CMA 72.17 3.04 Equifax EFX 138.53 2.58 Hasbro HAS 102.76 2.39 LibertySirius A LSXMA 48.03 0.21 s SchwabC SCHW 51.07 1.47 UnionPacific UNP 175.22 0.77
Aflac AFL 53.90 0.85 s CommerceBcshrs CBSH 66.50 1.34 Equinix EQIX 547.80-11.34 Okta OKTA 113.25 -4.40
ApolloGlbMgmt APO 44.47 -0.49 BoozAllen BAH 69.35 -0.53 HealthcareAmer HTA 29.03 -0.85 LibertySirius C LSXMK 47.55 0.10 Sea SE 37.30 0.53 UnitedAirlines UAL 88.47 1.45
AGCO AGCO 78.09 1.50 OldDomFreight ODFL 187.48 1.78
s Apple AAPL 271.46 0.69 BorgWarner BWA 44.50 0.57 SABESP SBS 14.45 -0.47 Equinor EQNR 18.67 0.33 HealthpeakProp PEAK 32.31 -0.88 LibertyProperty LPT 59.94 -0.59 Seagate STX 59.05 1.11 s UnitedMicro UMC 2.71 0.06
AGNC Invt AGNC 17.45 0.11 EquityLife ELS 69.93 -1.21 OldRepublic ORI 22.68 0.41
ApplMaterials AMAT 60.36 1.32 BostonProps BXP 135.13 -2.16 ConagraBrands CAG 28.23 -0.40 Heico HEI 123.43 -0.67 EliLilly LLY 121.70 0.92 SealedAir SEE 38.70 -0.05 UPS B UPS 116.95 0.16
Ansys ANSS 251.02 -0.61 OmegaHealthcare OHI 41.42 -0.70
Aptargroup ATR 114.18 1.61 s BostonSci BSX 44.67 0.85 ConchoRscs CXO 79.92 2.13 EquityResdntl EQR 81.78 -0.90 Heico A HEI.A 96.00 -0.55 s LincolnElectric LECO 95.96 1.35 SeattleGenetics SGEN 112.26 0.92 s UnitedRentals URI 163.19 6.22
s ASETech ASX 5.69 0.38 Omnicom OMC 82.23 1.39
Aptiv APTV 95.81 2.82 BrightHorizons BFAM 149.89 -1.31 ConocoPhillips COP 62.59 0.91 ErieIndemnity A ERIE 168.73 -3.62 HenrySchein HSIC 68.82 -0.28 LincolnNational LNC 60.15 2.44 SempraEnergy SRE 146.89 -1.88 s US Bancorp USB 60.55 1.30
s ASML ASML 287.24 3.20 EssexProp ESS 300.30 -4.46 ON Semi ON 23.16 0.74
AquaAmerica WTR 45.12 -0.57 s Bristol-Myers BMY 63.94 1.53 ConEd ED 87.52 -0.07 Herbalife HLF 45.54 1.20 Linde LIN 209.92 4.28 SensataTechs ST 52.47 0.42 UnitedTech UTX 149.41 2.14
AT&T T 38.35 0.18 OneMain OMF 43.54 0.50
Aramark ARMK 43.25 0.43 BritishAmTob BTI 39.40 -0.08 ConstBrands B STZ.B178.70 -1.30 EsteeLauder EL 200.62 2.06 Hershey HSY 146.82 -2.95 LiveNationEnt LYV 69.43 -0.01 ServiceCorp SCI 45.40 0.33 s UnitedHealth UNH 283.61 3.11
AXA Equitable EQH 24.86 0.59 EuronetWorldwide EEFT 153.99 -0.68 OpenText OTEX 43.05 0.21
ArcelorMittal MT 18.51 0.80 BrixmorProp BRX 20.98 -0.45 ConstBrands A STZ 179.79 -1.83 Hess HES 63.38 1.78 LloydsBanking LYG 3.20 0.06 ServiceNow NOW 265.65 -1.65 UnivDisplay OLED 195.31 3.02
AbbottLabs ABT 85.97 1.06 s EverestRe RE 275.06 4.05 Oracle ORCL 56.47 0.16
ArchCapital ACGL 41.66 0.64 s Broadcom AVGO 327.80 8.08 ContinentalRscs CLR 34.31 1.01 HewlettPackard HPE 16.40 0.53 LockheedMartin LMT 384.05 -2.19 ShawComm B SJR 20.24 -0.05 UniversalHealthB UHS 146.27 1.57
AbbVie ABBV 88.73 2.03 Evergy EVRG 62.14 -0.75 Orange ORAN 14.84 0.07
ArcherDaniels ADM 44.91 0.68 BroadridgeFinl BR 119.55 0.67 Cooper COO 314.55 7.87 Hexcel HXL 77.53 -1.22 Loews L 51.09 1.10 SherwinWilliams SHW 576.81 1.32 UnumGroup UNM 31.01 0.82
Abiomed ABMD 179.15 0.28 EversourceEner ES 80.85 -0.50 Orix IX 84.74 -0.25
s Accenture ACN 203.92 1.62 s Arconic ARNC 31.62 0.39 BrookfieldMgt BAM 57.26 -0.90 Copart CPRT 88.48 0.19 Hill-Rom HRC 109.97 1.55 s LogitechIntl LOGI 44.39 0.50 s Oshkosh OSK 93.95 1.56
ShinhanFin SHG 38.10 0.98 VEREIT VER 9.17 -0.24
s ActivisionBliz ATVI 58.56 2.08 arGEN-X ARGX 155.94 -0.48 BrookfieldInfr BIP 51.02 -0.41 Corning GLW 29.25 1.23 ExactSciences EXAS 85.42 0.25 s Hilton HLT 106.52 0.82 Lowe's LOW 118.20 0.54 Shopify SHOP 372.05 -1.03 VF VFC 93.36 1.70
OwensCorning OC 65.64 0.54
AristaNetworks ANET 192.70 1.47 s Brown&Brown BRO 38.63 0.38 Corteva CTVA 26.98 0.78 Exelon EXC 44.10 -0.09 HollyFrontier HFC 50.45 0.35 lululemon LULU224.47 -8.72 s Sibanye-Stillwater SBGL 9.29 -0.04 VICI Prop VICI 24.65 -0.04
Adobe ADBE 305.96 2.22 Expedia OwlRock ORCC 18.17 0.17
ArrowElec ARW 85.12 1.83 Brown-Forman B BF.B 63.27 -0.51 CoStar CSGP 568.24-12.33 EXPE 113.50 1.54 s Hologic HOLX 53.19 0.59 Lyft LYFT 46.60 -0.76 SignatureBank SBNY 134.62 4.67 VailResorts MTN 242.17 3.88
AdvanceAuto AAP 156.12 0.22 PG&E PCG 11.72 -0.42
ArrowheadPharm ARWR 67.32 -0.90 Brown-Forman A BF.A 58.85 -0.42 Costco COST 297.34 2.04 ExpeditorsIntl EXPD 76.32 1.89 HomeDepot HD 212.04 0.04 LyondellBasell LYB 93.97 2.79 s PNC Fin t SimonProperty SPG 144.01 -1.39 Vale VALE 12.91 0.33
s AdvMicroDevices AMD 42.59 3.12 ExtraSpaceSt EXR 102.40 -2.56 PNC 159.00 4.00
AspenTech AZPN 119.12 0.54 Bruker BRKR 49.58 0.04 Coty COTY 11.67 0.10 HondaMotor HMC 28.96 0.10 SiriusXM SIRI 6.89 0.02 ValeroEnergy VLO 94.53 1.64
Aegon AEG 4.60 0.15 POSCO PKX 50.47 1.74
AerCap AER 62.10 1.10 Assurant AIZ 130.44 0.17 Bunge BG 55.93 0.65 CoupaSoftware COUP 137.04 -7.12 ExxonMobil XOM 70.34 1.38 Honeywell HON 177.39 1.38 M N s PPG Ind PPG 133.76
s
1.45 SkechersUSA SKX 41.64 0.89
VarianMed VAR 141.86 2.64
CousinsProperties CUZ 39.42 -0.59 F5Networks FFIV 143.46 2.64 s VEDL 8.48 0.42
s AgilentTechs A 84.81 1.39 AstraZeneca AZN 47.92 -0.27 BurlingtonStrs BURL 225.57 3.14
s FMC
HorizonTherap HZNP 32.84 0.59
M&T Bank MTB 171.98 5.54 PPL PPL 33.60 -0.16 Skyworks SWKS 111.49 2.20 Vedanta
Credicorp BAP 208.38 3.71 FMC 99.50 1.25
AgnicoEagle AEM 60.71 -0.28 Athene ATH 45.29 1.30 CACI Intl CACI 239.54 0.97 HormelFoods HRL 45.35 -0.21
MDU Rscs MDU 28.85 -0.07 PRA HealthSci PRAH103.46 1.41 SlackTech WORK 20.90 0.15 VeevaSystems VEEV 142.65 0.41
s CBRE Group CBRE 58.96 0.55 CreditAcceptance CACC 442.16 10.48 Facebook FB 196.75 -5.51 s DR Horton DHI 54.36 t Ventas
AirProducts APD 232.40 2.90 Atlassian TEAM 116.17 -2.06 -1.55
s MGM Resorts MGM 32.54 0.43 PTC PTC 73.44 -0.49 SmithAO AOS 46.79 1.27 VTR 55.15 -1.20
CreditSuisse CS 13.31 0.36 FactSet FDS 270.04 -1.56
AkamaiTech AKAM 83.34 -0.51 AtmosEnergy ATO 106.51 -0.69 CDK Global CDK 54.57 1.02 HostHotels HST 17.86 -0.05
MKS Instrum MKSI 110.82 1.93 PVH PVH 105.13 2.63 Smith&Nephew SNN 44.89 0.06 VeriSign VRSN 189.97 0.05
Autodesk ADSK 177.90 -1.74 CDW CDW 136.80 1.14 CrowdStrike CRWD 47.30 -0.43 FairIsaac FICO 352.83 -1.67 Huazhu HTHT 34.82 0.84 Smucker SJM 102.47 -1.96 VeriskAnalytics VRSK 147.41 0.85
AlaskaAir ALK 67.69 0.95 MPLX MPLX 25.23 -0.08 s Paccar PCAR 82.95 1.55
CrownCastle CCI 132.00 -1.41 Fastenal FAST 37.65 1.42 s Verizon
Albemarle ALB 68.02 2.72 Autohome ATHM 74.39 2.19 CF Industries CF 45.40 0.84 Hubbell HUBB 147.66 1.20
MSCI MSCI 259.86 -0.93 PackagingCpAm PKG 112.18 0.62 Snap SNAP 14.45 0.22 VZ 61.17 0.09
Autoliv ALV 85.78 2.56 CGI GIB 82.83 0.14 CrownHoldings CCK 71.60 -0.56 FederalRealty FRT 127.59 -2.20 HubSpot HUBS 148.66 -0.34 SnapOn SNA 170.42 2.74 VertxPharm VRTX 220.55 0.55
Alcon ALC 56.33 0.63 FedEx FDX 164.89 5.81 MadisonSquGarden MSG 278.95 5.03 PagSeguroDig PAGS 29.78 1.03
CubeSmart CUBE 29.95 -0.59
AlexandriaRlEst ARE 156.85 -2.23 ADP ADP 167.16 0.83 CH Robinson CHRW 77.98 2.09 Humana HUM 347.03 2.25
MagellanMid MMP 62.46 0.71 PaloAltoNtwks PANW 226.89 -0.08 SonocoProducts SON 61.76 0.92 ViacomCBS B VIAC 37.78 0.49
AutoZone AZO 1230.92-13.91 CME Group CME 203.14 -1.57 Cullen/Frost CFR 97.97 2.95 Ferrari RACE 166.22 0.99 JBHunt JBHT112.45 1.06 s Sony SNE 67.32 0.78 ViacomCBS A VIACA 40.49 0.66
AlexionPharm ALXN 112.47 2.97 Cummins CMI 184.88 2.77 FiatChrysler FCAU 14.70 0.37 MagnaIntl MGA 55.29 0.83 ParkHotels PK 24.50 0.14
s Alibaba BABA 204.50 -0.14 Avalonbay AVB 209.16 -2.91 CMS Energy CMS 60.77 -0.68 s HuntingtonBcshs HBAN 15.60 0.39 s ParkerHannifin PH 209.30 2.96 Southern SO 60.71 0.02 Vipshop VIPS 13.57 -0.17
s CurtissWright CW 143.21 1.02 FidNatlFin FNF 47.27 -0.02 ManulifeFin MFC 19.52 0.19 SoCopper SCCO 41.22 0.66 Visa V 182.64 0.63
AlignTech ALGN 268.39 -6.84 Avangrid AGR 48.92 0.19 CNA Fin CNA 44.35 0.51 HuntingIngalls HII 254.55 0.81 Paychex PAYX 84.74 0.47
CypressSemi CY 23.44 0.05 FidNatlInfo FIS 136.73 1.58 s HyattHotels H MarathonOil MRO 13.03 0.42
Allakos ALLK 125.97 4.71 Avantor AVTR 18.34 -0.18 CNH Indl CNHI 10.73 0.21
s FifthThirdBncp FITB 31.49 1.15
82.50 1.42
MarathonPetrol MPC 59.00 1.89 PaycomSoftware PAYC 254.48 -7.59 SouthwestAir LUV 54.49 0.49 VistraEnergy VST 24.05 0.15
AveryDennison AVY 129.62 -0.19 CNOOC CEO 149.78 3.09 CyrusOne CONE 60.90 -1.14 IAA IAA 45.94 0.29 SpiritAeroSys SPR 80.00 -1.39 VMware VMW 156.14 5.23
Alleghany Y 797.86 9.83 58.com WUBA 62.05 1.71 Markel MKL 1131.59 6.48 Paylocity PCTY 114.99 -5.27
Allegion ALLE 124.47 -1.22 AxaltaCoating AXTA 29.94 0.15 CPFLEnergia CPL 16.04 0.34
D E F FirstAmerFin FAF 61.51 -0.50
IAC/InterActive IAC 218.36 1.58
MarketAxess MKTX 369.46 -7.35 PayPal PYPL 105.67 0.16 Splunk SPLK 143.65 -2.25 Vodafone VOD 18.94 0.04
s Allergan AGN 188.27 1.63 BCE BCE 48.77 -0.23 s CRH CRH 39.53 0.34 s ICICI Bank IBN 15.09 0.11 Pearson PSO 8.48 ... Spotify SPOT 147.23 0.10 VornadoRealty VNO 65.04 -0.57
s FirstRepBank FRC 115.62 3.20 s Marriott MAR 145.10 2.35
AlliantEnergy LNT 52.59 -0.45 BHP Group BHP 53.74 0.52 CSX CSX 72.28 0.55 DISH Network DISH 34.23 0.34
FirstEnergy FE 47.85 -0.17
IdexxLab IDXX 251.88 1.43
s Marsh&McLen MMC 110.28 1.31 Pegasystems PEGA 75.31 -0.14 t Sprint S 5.19 -0.06 VoyaFinancial VOYA 58.42 1.05
Allstate ALL 110.35 0.76 BHP Group BBL 46.16 0.39 CVS Health CVS 74.26 0.91 DTE Energy DTE 124.93 -0.41 s IHS Markit INFO 74.04 0.39 Peloton PTON 30.85 -1.18 Square SQ 65.86 0.11 VulcanMatls VMC 142.49 0.09
Fiserv FISV 115.18 0.57 MartinMarietta MLM 275.03 2.80 s StanleyBlackDck SWK 167.76 8.17
AllyFinancial ALLY 31.92 0.40 BOK Fin BOKF 87.13 2.84 CableOne CABO 1514.87-14.13 DXC Tech DXC 37.40 1.33 ING Groep ING 11.92 0.34 PembinaPipeline PBA 35.56 -0.20
AlnylamPharm ALNY 120.61 1.82 BP BP 36.96 0.40 CabotOil COG 16.16 0.16 s Danaher DHR 151.30 1.63
FiveBelow FIVE 125.74 4.79 Invesco IVZ 17.71 0.62
MarvellTech MRVL 25.63 0.85
s Masco MAS 47.42 1.00 s Pentair PNR 45.97 0.47 Starbucks SBUX 88.21 1.62
W X Y Z
FleetCorTech FLT 301.52 -1.54 s
Alphabet A GOOGL 1348.49 4.24 BRF BRFS 8.67 -0.03 CadenceDesign CDNS 66.88 0.99 Darden DRI 116.27 -1.17 Flex FLEX 12.01 0.47
IPG Photonics IPGP143.20 4.56
Masimo MASI 157.27 3.06 People'sUtdFin PBCT 17.02 0.54 StarsGroup TSG 24.48 0.19 WABCO WBC 135.37 0.23
Alphabet C GOOG 1350.27 5.25 BWX Tech BWXT 62.01 0.35 CAE CAE 25.71 -0.02 Datadog DDOG 35.73 0.18 FlirSystems FLIR 53.18 0.68
IQVIA IQV 145.29 1.45
Mastercard MA 292.21 2.16 PepsiCo PEP 137.18 0.08 StarwoodProp STWD 24.63 -0.13 WEC Energy WEC 88.78 -0.75
Alteryx AYX 94.63 -3.78 Baidu BIDU 120.54 4.17 s CaesarsEnt CZR 13.19 0.17 s DaVita DVA 73.24 0.61 Flowserve FLS 49.58 1.36
s ITT ITT 73.86 1.00
MatchGroup MTCH 69.09 0.47 PerkinElmer PKI 95.85 1.54 s StateStreet STT 80.42 2.23 WEX WEX 201.58 4.59
AlticeUSA ATUS 26.43 0.33 BakerHughes BKR 23.76 1.08 CamdenProperty CPT 107.16 -1.04 Deere DE 173.82 4.12 FomentoEconMex FMX 94.10 0.47
IcahnEnterprises IEP 61.13 0.48
MaximIntProducts MXIM 59.46 1.58 Perrigo PRGO 54.53 0.72 SteelDynamics STLD 35.07 0.33 W.P.Carey WPC 77.55 -2.85
Altria MO 49.93 -0.37 Ball BLL 63.41 -0.46 CampbellSoup CPB 47.71 -0.27 DellTechC DELL 49.50 1.79 FordMotor F
Icon ICLR 161.57 -0.16
McCormick MKC 166.46 -4.19 PetroChina PTR 47.83 1.42 s Stericycle SRCL 65.75 0.14
s WPP WPP 65.14 1.67
9.32 0.21
Amarin AMRN 22.99 0.18 BancoBilbaoViz BBVA 5.45 0.21 CIBC CM 83.23 0.67 DeltaAir DAL 56.69 1.61 Fortinet FTNT 104.40 0.26
IDEX IEX 166.86 2.89
McDonalds MCD 196.31 1.59 PetroleoBrasil PBR 16.06 0.35 Steris STE 153.66 -0.02
Wabtec WAB 75.14 0.24
Amazon.com AMZN 1760.33 11.61 BancoBradesco BBDO 7.82 0.15 CanNtlRlwy CNI 90.62 0.49 DentsplySirona XRAY 56.94 0.16 Fortis FTS 40.43 -0.04
s IllinoisToolWks ITW 179.10 2.23
McKesson MCK 143.93 0.57 PetroleoBrasilA PBR.A 15.17 0.44 s STMicroelec STM 27.15 0.73 WalgreensBoots WBA 58.58 0.57
Ambev ABEV 4.57 0.12 BancodeChile BCH 22.26 0.38 CanNaturalRes CNQ 30.47 0.95 DeutscheBank DB 7.57 0.31 Fortive FTV 76.17 1.20
Illumina ILMN 321.99 1.42
MedicalProp MPW 20.26 -0.48 Pfizer PFE 38.54 0.32 StoneCo STNE 38.69 -0.01
Walmart WMT 119.76 0.76
Amcor AMCR 10.68 0.20 BancSanBrasil BSBR 10.86 0.13 s CanPacRlwy CP 249.91 1.94 DevonEnergy DVN 23.99 0.66 ImperialOil IMO 25.44 0.22 PhilipMorris PM 84.05 -0.79 Stryker SYK 199.77 1.79
s FortBrandsHome FBHS 65.52 0.36 Medicines MDCO 84.03 -0.04 WasteConnections WCN 89.25 -0.91
s Amdocs DOX 70.20 0.57 BcoSantChile BSAC 22.93 0.48 Canon CAJ 28.36 0.05 DexCom DXCM 202.00-10.36 FoxA FOXA 36.85 0.69
Incyte INCY 92.85 -2.08
Medtronic MDT 112.38 0.66 Phillips66 PSX 113.73 1.52 SumitomoMits SMFG 7.36 ...
WasteMgt WM 110.66 -0.74
Amerco UHAL 353.92 -2.32 BancoSantander SAN 4.05 0.16 CanopyGrowth CGC 21.13 0.88 Diageo DEO 160.70 -1.48 Infosys INFY 10.03 -0.04 PilgrimPride PPC 32.12 0.41 SunComms SUI 153.46 -3.02
FoxB FOX 35.96 0.67 MelcoResorts MLCO 22.83 1.57 Waters WAT 233.69 4.72
Ameren AEE 74.71 -0.24 BanColombia CIB 52.27 0.49 s CapitalOne COF 104.03 2.60 DiamondbkEner FANG 86.27 2.44 s Ingersoll-Rand IR 134.39 1.38 Pinduoduo PDD 38.09 0.78 SunLifeFinancial SLF 44.89 0.11
Franco-Nevada FNV 97.61 -0.92 MellanoxTech MLNX 116.28 2.00 Watsco WSO 180.75 1.31
AmericaMovil AMX 15.47 0.10 s BankofAmerica BAC 34.68 1.04 CardinalHealth CAH 54.66 0.38 DigitalRealty DLR 114.67 -1.27 Ingredion INGR 89.65 1.85 PinnacleWest PNW 85.74 0.30 SuncorEnergy SU 31.95 0.24
FranklinRscs BEN 26.79 0.86 MercadoLibre MELI 579.98 -0.33 Wayfair W 88.75 0.65
AmerAirlines AAL 27.72 0.86 BankofMontreal BMO 76.32 0.51 Carlisle CSL 158.51 1.14 DiscoverFinSvcs DFS 86.38 2.15 FreeportMcM FCX 13.06 0.22
Insulet PODD 173.28 -6.91
s Merck MRK 89.57 0.59 t Pinterest PINS 17.76 -0.44 Suzano SUZ 9.60 0.10
WellCareHealth WCG 315.98 -0.23
AmCampus ACC 45.78 -0.95 BankNY Mellon BK 51.22 1.34 CarMax KMX 99.05 0.02 DiscoveryA DISCA 32.36 0.27 FreseniusMed FMS 36.40 0.26
Intel INTC 57.55 0.48
MetLife MET 50.54 1.45 PioneerNatRscs PXD 139.55 3.36 SynchronyFin SYF 37.69 0.55 WellsFargo WFC 54.36 1.19
AEP AEP 91.14 -1.01 BkNovaScotia BNS 56.73 0.16 Carnival CCL 46.90 1.11 DiscoveryC DISCK 30.10 0.18 ICE ICE 90.72 -1.59 PlainsAllAmPipe PAA 17.65 0.12 s SyneosHealth SYNH 57.36 1.25
MettlerToledo MTD 775.42 13.07 Welltower WELL 79.13 -2.04
AmerExpress AXP 122.64 2.00 s Barclays BCS 9.08 0.11 Carnival CUK 44.25 0.89 Disney DIS 147.76 0.17 G H I InterContinentl IHG 64.52 1.18
s MicrochipTech MCHP 103.16 3.81 PlanetFitness PLNT 72.54 -1.65 s Synnex SNX 128.99 1.88
WestPharmSvcs WST 146.41 -0.26
s AmericanFin AFG 110.87 0.71 BarrickGold GOLD 17.56 -0.06 Catalent CTLT 52.24 0.06 DocuSign DOCU 71.97 -0.49 IBM IBM 135.32 1.56 Polaris PII 102.28 3.30 Synopsys SNPS 135.88 3.80
MicronTech MU 50.97 1.71 WesternDigital WDC 53.73 2.66
AmHomes4Rent AMH 25.40 -0.38 s BauschHealth BHC 31.89 2.56 Caterpillar CAT 146.78 2.78 DolbyLab DLB 68.13 0.71 GCI LibertyA GLIBA 68.89 0.82 IntlFlavors IFF 134.60 0.06
s Microsoft MSFT 153.24 1.54 Pool POOL 207.49 -0.27 s Sysco SYY 83.27 0.39
WesternMidstrm WES 19.40 -0.25
AIG AIG 51.03 0.62 BaxterIntl BAX 83.51 0.50 Celanese CE 125.36 2.57 DollarGeneral DG 155.58 1.07 s GDS Holdings GDS 49.09 0.30 IntlPaper IP 46.56 0.38 PostHoldings POST 106.54 0.09
AmerTowerREIT AMT 209.69 -1.87 s BectonDicknsn BDX 265.44 4.38 CenovusEnergy CVE 9.62 0.26 DollarTree DLTR 92.55 1.05 Galapagos GLPG 215.54 0.54 Interpublic IPG 23.06 0.37
MidAmApt MAA 130.78 -0.86
Middleby MIDD 109.66 0.19 PrincipalFin PFG 54.86 1.33 T U V WesternUnion WU 27.05 0.46
WestlakeChem WLK 71.57 2.31
AmerWaterWorks AWK 118.43 -2.47 BeiGene BGNE 179.17 -0.76 Centene CNC 58.52 -0.12 DominionEner D 80.69 -0.21 s Gallagher AJG 94.62 0.18 InterXion INXN 80.55 -0.87
MitsubishiUFJ MUFG 5.42 0.01 Procter&Gamble PG 124.57 -0.09 TAL Education TAL 45.40 0.06 WestpacBanking WBK 16.54 ...
AmericoldRealty COLD 33.84 -1.19 Berkley WRB 69.60 0.04 CenterPointEner CNP 24.82 -0.29 Domino's DPZ 296.65 3.68 Gaming&Leisure GLPI 41.01 -0.89 Intuit INTU 252.75 0.85 Progressive PGR 72.69 1.53 TC Energy TRP 51.38
MizuhoFin MFG 3.14 0.02 -0.29 WestRock WRK 41.24 0.83
s Ameriprise AMP 168.43 3.92 s BerkHathwy A BRK.A3388005200.00 CentraisElBras EBR 8.83 0.09 s Donaldson DCI 57.15 0.72 Gap GPS 17.02 0.85 IntuitiveSurgical ISRG 580.97 6.18 Prologis PLD 88.92 -0.88 TCF Financial TCF 45.51
MobileTeleSys MBT 9.53 0.02 1.75 Weyerhaeuser WY 29.55 0.22
AmerisourceBrgn ABC 86.79 0.13 s BerkHathwy B BRK.B 225.92 3.35 CenturyLink CTL 13.74 -0.27 DouglasEmmett DEI 43.15 -0.78 GardnerDenver GDI 35.02 0.73 InvitatHomes INVH 28.80 -0.66 Proofpoint PFPT 112.86 -0.13 TD Ameritrade AMTD 53.45
Moderna MRNA 18.45 -0.20 1.73 WheatonPrecMet WPM 27.69 -0.26
s Ametek AME 99.30 0.63 BerryGlobal BERY 47.38 0.33 CeridianHCM CDAY 61.57 -0.47 s Dover DOV 114.48 1.31 Garmin GRMN 97.78 0.19 IonisPharma IONS 62.22 0.53 ProsperityBcshs PB 71.86 2.05 TE Connectivity TEL 94.45 1.30 Whirlpool WHR151.54 5.34
MohawkInds MHK 139.06 2.39
s Amgen AMGN 235.99 1.98 s BestBuy BBY 85.35 1.52 Cerner CERN 71.82 0.32 Dow DOW 54.45 1.35 Gartner IT 157.41 0.43 iQIYI IQ 19.99 ... PrudentialFin PRU 94.55 2.13 Telus TU 37.99 -0.08
MolinaHealthcare MOH 129.72 1.88 Williams WMB 22.65 -0.16
s Amphenol APH 108.02 2.09 Bio-Techne TECH 218.31 2.62 s CharlesRiverLabs CRL 147.07 0.83 DrReddy'sLab RDY 41.26 0.36 Generac GNRC 99.58 0.04 IronMountain IRM 32.73 0.06 Prudential PUK 36.06 1.29 s TIM Part TSU 17.60 0.41
MolsonCoors A TAP.A 62.00 0.75 WillisTowers WLTW 198.42 4.01
ItauUnibanco ITUB 8.68 0.09 PublicServiceEnt PEG 58.50 0.23 TJX TJX 60.86 0.47
MolsonCoors B TAP 51.36 0.19 Wipro WIT 3.68 0.02
PublicStorage PSA 204.25 -3.67 T-MobileUS TMUS 74.89 0.27 Wix.com
J K L Momo MOMO 35.83 -0.07
Mondelez MDLZ 52.98 -0.95
PulteGroup PHM 39.63 -1.08 s TRowePrice TROW 125.35 1.74
WIX 119.04 -0.51
s Woodward WWD 124.11 0.41
Dividend Changes JD.com JD 33.82
s JPMorganChase JPM 138.02
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3.84
MongoDB MDB 124.73 -3.27
s MonolithicPower MPWR 173.75 4.70
Qiagen
s Qorvo
QGEN 41.50
QRVO 115.35
0.10 s TaiwanSemi TSM 58.61
1.51 TakeTwoSoftware TTWO 125.27
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WooriFin WF 30.49 1.61
Workday WDAY 159.74 -5.26
s Jabil Qualcomm QCOM 89.05 2.06 TakedaPharm TAK 20.32
JBL 40.44 0.64 MonsterBev MNST 62.24 -0.19 0.25 WynnResorts WYNN 132.27 11.44
Dividend announcements from December 12. JackHenry JKHY 146.79 1.25 s Moody's MCO 234.33 1.08
QuestDiag DGX 105.32 0.59 Tapestry TPR 26.34 0.52 s XP XP 34.64 0.18
JacobsEngg J s MorganStanley MS 50.69 1.24 TargaResources TRGP 37.16 0.30 XPO Logistics XPO 83.48 1.72
Amount Payable / Amount Payable /
JamesHardie JHX 19.71
90.02 1.93
0.28 Morningstar MORN 149.72 -1.98
R S Target TGT 127.52 1.72 XcelEnergy XEL 61.36 -0.80
Company Symbol Yld % New/Old Frq Record Company Symbol Yld % New/Old Frq Record JazzPharma JAZZ 149.90 1.78 Mosaic MOS 18.96 0.74 RELX TataMotors TTM 12.34 0.99 Xerox XRX 37.12 0.60
RELX 23.98 -0.16
s JefferiesFin JEF 21.59 0.59 MotorolaSol MSI 161.97 0.83 RPM RPM 75.57 1.04 TechnipFMC FTI 19.90 0.56 Xilinx XLNX 96.54 2.67
Increased Stocks J&J JNJ 141.34 0.36 Mylan MYL 19.68 0.87 RalphLauren RL 115.75 TeckRscsB TECK 16.74 0.62 Xylem XYL 77.66 0.83
4.12
FortuneBrandsHome&Sec FBHS 1.3 .24 /.22 Q Mar18 /Feb28 iMedia Brands Cl A IMBI 1:10 /Dec12 JohnsonControls JCI 42.01 -0.69 NICE NICE 153.93 0.26 RaymondJames RJF 91.00 1.67 TeledyneTech TDY 348.31 -0.34 Yandex YNDX 41.75 0.29
Franklin Resources BEN 3.9 .27 /.26 Q Jan10 /Dec31 TransEnterix TRXC 1:13 /Dec12 JonesLang JLL 171.27 2.68 NRG Energy NRG 39.33 0.41 Raytheon RTN 218.19 0.37 Teleflex TFX 356.45 1.67 YumBrands YUM 99.83 0.39
Mid-Amer Apt Communities MAA 2.9 1.00 /.96 Q Jan31 /Jan15 JuniperNetworks JNPR 24.35 0.34 NVR NVR 3752.95-85.07 RealtyIncome O 73.14 -1.44 Ericsson ERIC 9.17 0.10 YumChina YUMC 46.48 0.51
Foreign KB Fin KB 41.48 1.13 s NXP Semi NXPI 123.98 2.58 ReataPharm RETA 201.05 1.51 TelefonicaBras VIV 13.65 0.15 ZTO Express ZTO 21.00 -0.10
Realty Income O 3.7 .2275 /.227 M Jan15 /Jan02
Banco Bradesco Ord ADR BBDO 2.4 .12133 Jan09 /Dec23 KKR KKR 29.26 0.12 Nasdaq NDAQ 104.13 0.71 RegencyCtrs REG 60.82 -1.83 Telefonica TEF 7.41 -0.05 ZayoGroup ZAYO 34.28 0.02
WD-40 WDFC 1.3 .67 /.61 Q Jan31 /Jan17 Banco Bradesco Pref ADR BBD 2.4 .13346 Jan09 /Dec23 KLA KLAC 171.46 4.34 NationalGrid NGG 58.21 -0.98 RegenPharm REGN 372.16 -1.37 TelekmIndonesia TLK 27.97 -0.67 s ZebraTech ZBRA 258.28 1.46
Willis Towers Watson WLTW 1.3 .65 Q Jan15 /Dec31 KSCitySouthern KSU 151.86 -1.56 NatlOilwell NOV 24.14 0.49 s RegionsFin RF 17.42 0.58 10xGenomics TXG 61.54 -3.62 Zendesk ZEN 73.71 0.32
Reduced Kellogg K 66.19 0.04 NatlRetailProp NNN 51.95 -1.16 ReinsGrp RGA 165.29 1.40 Tenaris TS 23.03 0.69 Zillow C Z 42.54 -0.20
Eaton Vance NextShares EVSTC 1.7 1.1828 /1.194 A Dec17 /Dec13 Special KeurigDrPepper KDP 28.78 -0.05 NetApp NTAP 62.73 2.07 RelianceSteel RS 120.87 0.40 Teradyne TER 66.41 0.85 Zillow A ZG 41.96 -0.32
Salem Media Group SALM 17.6 .025 /.065 Q Dec30 /Dec23 s KeyCorp KEY 20.39 0.74 Netease NTES 304.25 -6.25 s RenaissanceRe RNR 196.11 3.66 Tesla TSLA 359.68 6.98 ZimmerBiomet ZBH 147.41 0.40
Landstar System LSTR 0.7 2.00 Jan24 /Jan10 s ZionsBancorp ZION 51.81 1.98
KeysightTechs KEYS 107.30 4.06 Netflix NFLX 298.44 -0.49 RepublicSvcs RSG 88.58 -0.25 TevaPharm TEVA 9.80 0.24
Initial Progressive Corp PGR 0.6 2.25 Jan15 /Jan08 KilroyRealty KRC 81.65 -1.49 Neurocrine NBIX 111.43 -1.82 s ResMed RMD 152.25 1.77 TexasInstruments TXN 126.07 2.35 Zoetis ZTS 124.33 0.77
KimberlyClark KMB 135.92 -0.98 NewOrientalEduc EDU 122.33 0.60 RestaurantBrands QSR 66.43 0.14 Textron TXT 44.41 0.48 ZoomVideo ZM 62.49 -1.03
AGNC Invt Pfd. E AGNCO 6.4 .4604 Q Jan15 /Jan01 KEY: A: annual; M: monthly; Q: quarterly; r: revised; SA: semiannual; s ThermoFisherSci TMO 319.36
KimcoRealty KIM 20.42 -0.41 NewResidInvt NRZ 15.73 0.10 RingCentral RNG 160.75 -1.62 1.28 Zscaler ZS 45.19 -0.01
New York Mtg Pfd. E NYMTM 7.8 .4758 Q Jan15 /Jan01 S2:1: stock split and ratio; SO: spin-off. KinderMorgan KMI 20.15 -0.05 NewellBrands NWL 19.44 0.40 RioTinto RIO 57.52 0.61 ThomsonReuters TRI 71.43 -0.14 Zynga ZNGA 6.20 0.06

New Highs and Lows | WSJ.com/newhighs Stock

52-Wk %
Sym Hi/Lo Chg Stock
52-Wk %
Sym Hi/Lo Chg Stock
52-Wk %
Sym Hi/Lo Chg Stock
52-Wk %
Sym Hi/Lo Chg Stock
52-Wk %
Sym Hi/Lo Chg Stock
52-Wk %
Sym Hi/Lo Chg Stock
52-Wk %
Sym Hi/Lo Chg
Eaton ETN 94.64 1.1 Grainger GWW 339.00 2.8 LPL Financial LPLA 93.71 0.9 PanAmerSilver PAAS 21.32 2.6 SkechersUSA SKX 41.70 2.2 Verizon VZ 61.63 0.1 J.Jill JILL 1.00 -1.0
The following explanations apply to the New York Stock Exchange, NYSE Arca, NYSE EHang EH 13.36 -0.1 GreatSouthernBncp GSBC 62.85 1.7 LambWeston LW 85.08 -0.3 ParkerHannifin PH 209.84 1.4 Skyworks SWKS 112.77 2.0 VictoryCapital VCTR 22.25 1.3 Jiayin JFIN 5.51 -5.0
American and Nasdaq Stock Market stocks that hit a new 52-week intraday high or low EidosTherap EIDX 66.30 ... GreenVisionAcqn GRNV 9.86 0.2 LawsonProducts LAWS 53.17 0.5 Parsons PSN 42.65 3.3 Sony SNE 67.39 1.2 VinceHolding VNCE 25.36 5.2 Kopin KOPN 0.40 -1.0
in the latest session. % CHG-Daily percentage change from the previous trading session. EmersonElec EMR 77.12 1.6 Group1Auto GPI 110.11 2.3 LegacyAcqn LGC 10.30 0.4 PeapackGladFinl PGC 31.01 2.1 SouthState SSB 85.84 1.8 WPP WPP 65.46 2.6 LeeEnterprises LEE 1.72 -8.5
EnelAmericas ENIA 10.92 1.4 GrAeroportuario OMAB 56.72 1.4 LibertyBroadbandA LBRDA 120.35 1.0 Pennant PNTG 31.50 4.8 SouthernFirstBcsh SFST 44.30 0.7 Walker&Dunlop WD 68.36 1.4 Lipocine LPCN 0.34 -4.9
EnstarGroup ESGR 210.45 0.6 GuarantyBcshrs GNTY 33.64 1.8 LincolnElectric LECO 96.32 1.4 PennsWoodsBncp PWOD 33.80 1.1 SoNtlBcpVA SONA 16.41 1.0 WestBancorp WTBA 25.12 0.4 Lovesac LOVE 11.38 -18.6
Thursday, December 12, 2019
EssaPharma EPIX 5.99 4.1 HanoverIns THG 140.00 0.7 LogitechIntl LOGI 44.47 1.1 PenskeAuto PAG 53.81 2.8 SouthsideBcshs SBSI 36.80 2.0 WestAllianceBcp WAL 55.99 3.7 MereoBioPharma MREO 1.47 -9.9
52-Wk % 52-Wk % 52-Wk % EverestRe RE 275.70 1.5 Harmonic HLIT 8.39 0.6 Lumentum LITE 75.33 7.5 Pentair PNR 46.23 1.0 SpecialOppFdPfB SPEpB 25.70 1.0 Woodward WWD 124.78 0.3 MiragenTherap MGEN 0.54 -7.8
Stock Sym Hi/Lo Chg Stock Sym Hi/Lo Chg Stock Sym Hi/Lo Chg Everi EVRI 13.94 6.4 HaynesIntl HAYN 39.04 1.3 LunaInnov LUNA 7.72 -0.8 PeoplesFinSvcs PFIS 50.10 0.2 St.Joe JOE 20.68 0.7 WyndhamDest WYND 50.29 1.1 MosaicAcqnWt MOSC.WS 0.37 -20.6
AudioCodes AUDC 25.20 2.6 CanPacRlwy CP 250.20 0.8 EvoquaWater AQUA 20.16 3.1 HlthSciencesAcqWt HSACW 1.60 7.2 MGM Resorts MGM 32.78 1.3 Perficient PRFT 44.24 0.8 StanleyBlackDck SWK 168.41 5.1 XP XP 37.46 0.5 NakedBrand NAKD 0.03 -5.6
Highs AuriniaPharm AUPH 18.88
AvenueTherap ATXI 8.26
-1.1
5.1
CapitalOne
CarolinaFin
COF 104.54
CARO 43.14
2.6
2.7
FB Financial
FMC
FBK
FMC
39.93
99.80
3.0
1.3
HlthSciencesAcq HSAC
HlthcrTrAmerPfdA HTIA
11.49
25.15
0.8
0.1
MalvernBancorp MLVF
Marriott MAR
23.45
145.59
1.3
1.6
Pfenex
Photronics
PFNX
PLAB
11.41
16.75
3.9
7.6
StanleyBlackDeckUn SWP
StanleyB&D Un SWT
110.64
109.84
3.6
4.0
ZaiLab
ZebraTech
ZLAB
ZBRA
43.29
259.39
2.7
0.6
NationalWt NHLDW
NebulaAcqnWt NEBUW
0.05 -57.9
0.60 -12.6
ABB ABB 23.64 3.0 AvidBioservices CDMO 7.57 0.8 CarriageSvcs CSV 27.80 0.5 FS Bancorp FSBW 64.41 1.1 HebronTech HEBT 9.00 -8.3 MarriottVacations VAC 128.00 0.3 PinnacleFinPtrs PNFP 64.98 3.4 Stantec STN 27.86 0.1 ZionsBancorp ZION 51.86 4.0 Noble NE 0.96 -6.8
AGBAAcquisition AGBA 10.05 0.1 AvonProducts AVP 5.16 3.0 CarterBk&Tr CARE 22.99 2.7 Fabrinet FN 63.22 3.8 HeritageCrystal HCCI 32.23 -1.6 Marsh&McLen MMC 110.47 1.2 Plexus PLXS 78.76 1.1 StarsGroup TSG 24.75 0.8 OneSmartIntl ONE 6.53 2.8
AMCI Acqn
ASETech
AMCI
ASX
10.11
5.70
0.2
7.2
AxcelisTechs ACLS 23.75 1.9 Carvana CVNA 97.06 2.4 FangddNetwork DUO 15.92 -4.2 Hilltop HTH 25.63 2.2 Masco MAS 47.58 2.2 PreferredBankLA PFBC 57.26 1.3 StateStreet STT 80.99 2.9 Lows Otelco OTEL 10.85 -1.6
BadgerMeter BMI 64.35 1.0 CntlValCmntyBk CVCY 21.83 0.5 Fellazo FLLC 9.93 ... Hilton HLT 107.23 0.8 MastechDigital MHH 9.78 0.2 PremierFinBncp PFBI 18.84 3.3 Stericycle SRCL 66.60 0.2 PingtanMarineEnt PME 1.07 -2.6
ASGN ASGN 69.39 1.4 AchieveLifeSci ACHV 0.66 -18.4
BancFirst BANF 61.57 1.8 CharlesRiverLabs CRL 149.22 0.6 FifthThirdBncp FITB 31.54 3.8 Hologic HOLX 53.74 1.1 Merck MRK 89.96 0.7 PrestigeCnsHlth PBH 39.46 0.3 STMicroelec STM 27.18 2.8 Pinterest PINS 17.64 -2.4
ASML ASML 287.28 1.1 AEternaZentaris AEZS 0.80 1.5
BancorpNJ BKJ 19.28 1.1 ChimeraInvt CIM 20.68 -0.2 FirstBancorpNC FBNC 40.67 1.4 HopeBancorp HOPE 15.26 1.8 MeridianBancorp EBSB 20.41 1.5 Primerica PRI 137.84 0.8 StockYardsBncp SYBT 42.53 1.1 PioneerPwrSols PPSI 2.18 1.3
AethlonMedical AEMD 1.83 -19.0
AccelEnt ACEL 12.00 2.1 BankofAmerica BAC 34.81 3.1 ChurchillCapII CCX.U 10.84 -0.2 FirstBusFinSvcs FBIZ 26.01 0.7 HorizonBancorp HBNC 19.38 1.5 Meridian MRBK 19.99 1.5 PrincipiaBio PRNB 50.25 0.7 SyneosHealth SYNH 57.96 2.2 PolymetMining PLM 0.26 2.2
AkersBiosciences AKER 2.67 -3.4
AccelEntWt ACEL.WS 2.70 0.4 BankofAmPfdL BMLpL 24.03 -0.3 ChurchillDowns CHDN 135.85 0.6 FirstCitizBcshA FCNCA 534.41 2.2 DR Horton DHI 56.12 -2.8 MethodeElec MEI 41.70 0.3 PureAcqn PACQ 10.60 1.8 Synnex SNX 129.85 1.5 PriorityIncmPfdE PRIFpE 24.45 0.4
Alarm.com ALRM 41.06 1.2
Accenture ACN 204.43 0.8 BankofCommerce BOCH 12.31 -1.3 CirrusLogic CRUS 76.93 0.9 FirstFinIN THFF 45.88 2.3 HuntingtonBcshs HBAN 15.63 2.6 MetroCityBkshs MCBS 17.03 1.1 PureCycle PCYO 12.88 -0.9 Sysco SYY 83.77 0.5 ProtectiveInsA PTVCA 14.01 0.4
AlpineIncmProp PINE 18.30 0.9
ActivisionBliz ATVI 58.81 3.7 BankofHawaii BOH 92.83 2.0 Citigroup C 77.52 2.0 FirstFoundation FFWM 16.99 2.4 HuronConsulting HURN 70.06 0.1 MicrochipTech MCHP 103.46 3.8 QCR Holdings QCRH 42.98 1.6 TIM Part TSU 17.73 2.4 PyxusIntl PYX 6.20 -6.7
AlterityTherap ATHE 0.81 -3.5
Acushnet GOLF 32.34 1.3 Barclays BCS 9.09 1.2 CtznCmntyBcp CZWI 12.75 2.0 FirstGuarBcshs FGBI 21.90 1.1 HyattHotels H 82.65 1.8 Microsoft MSFT 153.44 1.0 Qorvo QRVO 115.65 1.3 TRowePrice TROW 126.16 1.4 Q&K Intl QK 10.43 -15.0
AquaMetals AQMS 0.60 -5.8
AdvMicroDevices AMD 42.62 7.9 BarnesGroup B 63.14 1.8 CitizensFin CFG 40.65 3.6 FirstHawaiian FHB 29.29 2.4 ICICI Bank IBN 15.11 0.7 MiddlefieldBanc MBCN 28.13 5.4 Quidel QDEL 73.97 0.4 TTM Tech TTMI 14.04 1.5 RISE Education REDU 6.50 2.7
BK Tech BKTI 2.60 -0.4
AgilentTechs A 84.98 1.7 BauschHealth BHC 31.97 8.7 CoeurMining CDE 7.38 -1.7 FirstLongIsland FLIC 25.06 1.5 IEC Elec IEC 9.29 1.9 MidlandStBncp MSBI 28.92 0.8 RBC Bearings ROLL 174.94 2.9 TaiwanSemi TSM 58.62 4.8 RTW Retail RTW 0.88 -1.3
Benefitfocus BNFT 19.58 0.2
AirIndustries AIRI 1.88 0.6 BectonDicknsn BDX 266.57 1.7 CommerceBcshrs CBSH 66.51 2.1 FirstRepBank FRC 115.82 2.8 IHS Markit INFO 74.14 0.5 ModelN MODN 32.90 7.8 RaPharm RARX 47.48 ... TenetHealthcare THC 37.77 1.6 RiceBranTech RIBT 1.29 -33.2
BrickellBiotech BBI 1.67 0.4
AirLease AL 47.60 1.8 BenchmarkElec BHE 35.90 0.6 CommsSystems JCS 9.49 4.7 FlexionTherap FLXN 21.39 0.1 ITT ITT 74.09 1.4 MonocleAcqnWt MNCLW 0.85 11.4 RadianGroup RDN 26.32 0.3 TerritBanc TBNK 31.90 2.1 RitterPharm RTTR 0.16 -2.9
Bristol-MyersRt CELGr 0.40 -2.1
Alibaba BABA 206.00 -0.1 BerkHathwy A BRK.A 339769 1.6 CommBkSys CBU 69.83 2.9 FormFactor FORM 25.50 5.1 IVERICbio ISEE 6.38 12.4 MonolithicPower MPWR 174.02 2.8 RegionsFin RF 17.45 3.4 TheBancorp TBBK 12.69 3.4 Safe-T SFET 3.52 -3.3
CabalettaBio CABA 7.56 -3.7
Alico ALCO 36.48 -1.1 BerkHathwy B BRK.B 226.52 1.5 CmntyTrBcp CTBI 46.44 2.1 FormulaSys FORTY 74.00 7.6 Ichor ICHR 33.39 2.3 MonroeCapNts23 MRCCL 25.80 0.7 RenaissanceRe RNR 196.23 1.9 ThermoFisherSci TMO 322.17 0.4 SanchezMidstrm SNMP 0.22 4.7
Canaan CAN 5.55 -7.5
Allergan AGN 188.37 0.9 BestBuy BBY 85.55 1.8 COPEL ELP 15.87 -0.7 FortBrandsHome FBHS 65.65 0.6 IllinoisToolWks ITW 179.78 1.3 Moody's MCO 236.29 0.5 Rent-A-Center RCII 28.38 0.4 Timken TKR 57.18 4.8 SenesTech SNES 0.52 -3.6
Children'sPlace PLCE 53.62 8.3
Amdocs DOX 70.31 0.8 Bill.com BILL 37.75 61.4 CompassPfdC CODIpC 25.40 0.2 FortySeven FTSV 42.60 7.7 InfuSystems INFU 8.45 ... MorganStanley MS 50.87 2.5 Repay RPAY 15.00 0.9 Tiptree TIPT 8.30 -1.3 CorrevioPharma CORV 0.37 -15.2 ShiftPixy PIXY 0.20 -7.4
AmerantBancorpB AMTBB 17.50 8.8 BioNTech BNTX 34.00 -4.7 CompassDiversif CODI 25.05 1.7 Franchise FRG 17.30 17.6 Ingersoll-Rand IR 134.71 1.0 MorphoSys MOR 35.96 3.5 ResMed RMD 152.53 1.2 TompkinsFin TMP 91.10 1.6 CreativeRealWt CREXW 0.05 10.4 SiennaBiopharm SNNA 0.07 -34.5
AmericanFin AFG 111.86 0.6 Bio-RadLab B BIO.B 361.54 5.4 ConnectOneBncp CNOB 25.75 1.3 FranklinElec FELE 57.35 0.3 InglesMarkets IMKTA 46.56 1.0 NXP Semi NXPI 126.06 2.1 Rexnord RXN 32.71 1.7 Toro TTC 81.47 1.5 CrossTimbers CRT 7.38 2.4 SimonProperty SPG 142.40 -1.0
AmericanWoodmark AMWD 108.60 1.1 BlackRock BLK 503.69 1.7 Constellium CSTM 14.94 1.4 FrequencyTherap FREQ 20.49 11.6 Inseego INSG 7.90 0.1 NantKwest NK 2.30 14.6 RichmondMutBncp RMBI 15.15 1.3 TownsquareMedia TSQ 9.40 0.2 Dropbox DBX 16.63 -2.8 SinoGlobalShip SINO 0.41 -8.3
Ameriprise AMP 169.09 2.4 Blackstone BX 55.21 -1.4 Cosan CZZ 20.31 1.3 FullerHB FUL 52.40 1.6 InsightEnt NSIT 67.43 1.2 NatlSecurity NSEC 15.61 0.6 RushEnt A RUSHA 49.27 3.0 Tredegar TG 23.47 1.5 Dynatronics DYNT 0.63 8.8 SmileDirectClub SDC 7.56 -3.9
Ametek AME 99.84 0.6 BostonSci BSX 44.85 1.9 CostamarePfdB CMREpB 25.40 -0.6 GDS Holdings GDS 49.61 0.6 InsAcquisition INSU 10.00 0.9 NeoGenomics NEO 27.23 1.4 RushEnt B RUSHB 47.95 3.5 TriStateCapital TSC 25.53 1.3 EHang EH 11.77 -0.1 SoftwareAcqn SAQNU 10.01 0.4
Amgen AMGN 237.24 0.8 BridgewaterBcshs BWB 13.27 1.0 Costamare CMRE 9.42 3.3 GSAcquisitionWt GSAH.WS 2.52 4.8 Intellicheck IDN 8.35 -1.4 NeoleukinTherap NLTX 9.45 7.1 SEI Investments SEIC 65.76 1.4 TritonIntl TRTN 38.73 0.9 Elastic ESTC 60.10 -1.6 SparkNetworks LOV 4.39 -0.2
Amphenol APH 108.23 2.0 Bristol-Myers BMY 64.22 2.5 CountyBancorp ICBK 26.47 2.4 GS Acquisition GSAH.U 12.22 0.9 IntlBcshs IBOC 43.96 2.1 NewYorkMtgPfdE NYMTM 25.20 -0.1 SPX SPXC 52.17 1.5 TriumphBancorp TBK 38.85 0.5 FalconMineralsWt FLMNW 0.28 -32.1 Sprint S 5.16 -1.1
AnixterIntl AXE 90.34 0.6 Broadcom AVGO 330.16 2.5 Crawford A CRD.A 11.71 2.5 GSAcquisition GSAH 11.50 0.3 Itron ITRI 84.43 1.8 Newmark NMRK 13.62 1.1 SPX FLOW FLOW 49.45 2.3 TruistFinl TFC 56.19 4.5 Farmmi FAMI 0.95 -2.9 SummitWireless WISA 0.62 -2.9
ApolloInv AINV 17.42 1.0 BroadcomPfdA AVGOP1191.65 2.3 CrescentAcqn CRSA 9.97 0.2 Gallagher AJG 95.24 0.2 JELD-WEN JELD 23.86 0.8 NewmontGold NEM 41.28 0.5 Sanofi SNY 49.58 1.0 TwelveSeasRt BROGR 0.80 4.0 Ferrellgas FGP 0.41 -5.3 Synalloy SYNL 11.45 0.4
Apple AAPL 272.56 0.3 BrooklineBcp BRKL 16.47 1.6 CurtissWright CW 143.34 0.7 Gentherm THRM 45.10 1.6 JPMorganChase JPM 138.47 2.9 Nike NKE 98.18 0.6 SchwabC SCHW 51.65 3.0 TwoRiverBancorp TRCB 21.86 1.7 GSE Systems GVP 1.04 -1.8 TraconPharm TCON 2.50 -10.4
AppliedIndlTechs AIT 67.65 4.2 Brown&Brown BRO 38.63 1.0 DanaherPfdA DHRpA1172.25 1.5 GeospaceTech GEOS 17.05 2.2 Jabil JBL 40.53 1.6 NorthernTrust NTRS 110.13 2.1 SchweitzerMaud SWM 45.90 1.6 UMH Prop UMH 16.32 -1.9 GaleraTherap GRTX 8.16 -7.0 TabulaRasaHlth TRHC 38.03 -1.5
ApreaTherap APRE 44.30 10.3 BuildersFirstSrc BLDR 26.07 -2.4 Danaher DHR 153.02 1.1 GermanAmerBncp GABC 34.93 1.9 JefferiesFin JEF 21.63 2.8 NorthwestPipe NWPX 34.80 -0.3 Seaspan SSW 14.18 1.7 Unifirst UNF 212.41 0.4 GreenlandTech GTEC 5.58 -4.0 TaubmanCtrs TCO 30.58 -1.2
AptoseBiosci APTO 4.53 0.7 CBRE Group CBRE 59.34 0.9 DarlingIngred DAR 25.37 2.6 GlobeLife GL 106.63 1.4 Kadant KAI 106.55 3.7 NortonLifeLock NLOK 26.71 -0.8 SecurityNatFin SNFCA 6.13 1.2 UnionAcqnII LATNU 10.25 0.3 Greenlane GNLN 2.35 10.3 ThunderBridgeII THBRU 9.98 0.3
Arconic ARNC 31.75 1.2 CF Finance CFFA 10.22 0.1 DaVita DVA 73.65 0.8 GlobusMedical GMED 58.25 1.6 Kadmon KDMN 5.38 -4.8 NVIDIA NVDA 224.80 3.1 SenecaFoods B SENEB 39.00 -0.5 UnitedMicro UMC 2.74 2.3 HancockJaffeLabs HJLI 0.38 -1.7 Tocagen TOCA 0.46 -26.4
AresMgmt ARES 33.94 -0.4 CF FinanceWt CFFAW 0.90 -2.4 DecipheraPharm DCPH 60.14 0.9 GoldResource GORO 5.30 -2.1 KaiserAlum KALU 115.22 1.5 OpusBank OPB 26.44 3.8 ServisFirstBcshs SFBS 37.91 2.0 UnitedRentals URI 163.55 4.0 HornbeckOffshore HOS 0.33 -2.5 TottenhamAcqnIRt TOTAR 0.14 -2.0
ArrowFinancial AROW 37.48 1.5 CNO Financial CNO 18.81 3.6 DtscheBkTrII DXB 25.78 0.5 GoldmanSachsBDC GSBD 22.36 1.0 Kaman KAMN 67.59 1.8 Oshkosh OSK 94.27 1.7 Sibanye-Stillwater SBGL 9.57 -0.4 US Bancorp USB 60.70 2.2 IderaPharm IDRA 1.55 -0.6 TransEnterix TRXC 1.84 4.9
ArtisanPtrsAsset APAM 31.24 2.6 CRA Intl CRAI 55.21 1.7 Diodes DIOD 50.46 3.2 GoldmanSachs GS 226.78 2.2 KeyCorp KEY 20.40 3.8 PNC Fin PNC 159.64 2.6 SierraBancorp BSRR 28.85 2.2 UnitedHealth UNH 283.99 1.1 Inpixon INPX 0.04 -3.3 TwelveSeasInvt BROG 8.42 -8.0
Arvinas ARVN 44.36 0.7 CRH CRH 39.68 0.9 Donaldson DCI 57.21 1.3 GoldmanSachsPfC GSpC 23.15 -0.1 LGL Systems Un DFNSU 10.10 0.2 PPG Ind PPG 134.14 1.1 SiliconMotion SIMO 49.09 3.1 UrstadtBiddle UBP 19.64 -1.8 InsigniaSystems ISIG 0.76 -5.1 Ventas VTR 54.89 -2.1
AsburyAutomotive ABG 123.45 7.1 CSW Industrials CSWI 77.29 1.5 Dover DOV 115.13 1.2 Gorman-Rupp GRC 38.66 1.6 LKQ LKQ 36.24 0.7 PRA Group PRAA 37.59 -0.1 SilverSpikeAcqn SSPK 9.92 0.7 ValmontInds VMI 147.40 2.0 InterNAP INAP 1.03 -3.7 WestwaterRscs WWR 2.25 -5.1
AssuredGuaranty AGO 50.44 1.6 CaesarsEnt CZR 13.20 1.3 ESCO Tech ESE 90.00 0.8 GossamerBio GOSS 27.15 -4.3 LMP Auto LMPX 22.95 44.7 Paccar PCAR 83.18 1.9 SilvercorpMetals SVM 5.83 -3.9 ValueLine VALU 30.58 6.7 IturanLocation ITRN 21.53 1.6 YoungevityPfdD YGYIP 23.50 -1.0

Mutual Funds Data provided by

Fund
Net YTD
NAV Chg %Ret Fund
Net YTD
NAV Chg %Ret Fund
Net YTD
NAV Chg %Ret Fund
Net YTD
NAV Chg %Ret Fund
Net YTD
NAV Chg %Ret Fund
Net YTD
NAV Chg %Ret Fund
Net YTD
NAV Chg %Ret
500IdxInstPrem110.53 +0.95 28.8 SrsEmrgMkt 20.42 +0.41 24.4 EqInc 19.23 +0.01 24.6 PIMCO Funds I2 BalAdml 39.02 +0.13 20.2 USGroAdml 112.66 +0.43 29.6 WndsrII 39.13 +0.44 27.1
Top 250 mutual-funds listings for Nasdaq-published share classes by net assets. Contrafund K6 14.13 +0.08 27.5 SrsGlobal 13.16 +0.11 18.8 JPMorgan R Class Income NA ... NA CAITAdml 12.10 -0.01 6.8 ValAdml 46.54 +0.53 24.3 VANGUARD INDEX FDS
e-Ex-distribution. f-Previous day’s quotation. g-Footnotes x and s apply. j-Footnotes e ExtMktIdxInstPre 65.65 +0.42 25.6 SrsGroCoRetail 19.16 +0.10 35.6 CoreBond 11.86 -0.11 8.5 PIMCO Funds Instl CapOpAdml r165.32 +2.25 25.2 WdsrllAdml 69.44 +0.78 27.2 MdCpVlAdml 61.31 +0.61 26.1
and s apply. k-Recalculated by Lipper, using updated data. p-Distribution costs apply, IntlIdxInstPrem 43.51 +0.24 20.0 SrsIntlGrw 17.84 +0.12 33.1 CorePlusBd 8.46 -0.04 8.7 IncomeFd NA ... NA DivAppIdxAdm 33.48 +0.23 27.7 WellsIAdml 66.84 ... 15.4 SmValAdml 58.50 +0.61 21.1
12b-1. r-Redemption charge may apply. s-Stock split or dividend. t-Footnotes p and r MidCpInxInstPrem 23.81 +0.17 28.3 SrsIntlVal 10.15 +0.09 18.0 Lord Abbett A Price Funds EMAdmr 36.17 +0.43 16.3 WelltnAdml 76.07 +0.34 21.1 TotBd2 11.00 -0.05 8.4
apply. v-Footnotes x and e apply. x-Ex-dividend. z-Footnote x, e and s apply. NA-Not SAIUSLgCpIndxFd 17.10 +0.15 28.9 TotalBond 10.88 -0.05 9.4 ShtDurIncmA p 4.21 ... 5.2 BlChip 121.54 +0.55 26.6 EqIncAdml 80.31 +0.87 23.3 WndsrAdml 77.91 +1.10 28.3 TotIntl 17.65 +0.12 18.7
available due to incomplete price, performance or cost data. NE-Not released by Lipper; SmCpIdxInstPrem 21.26 +0.17 23.8 Fidelity SAI Lord Abbett F EqInc 31.57 -1.45 24.6 ExplrAdml 100.53 +0.84 29.3 VANGUARD FDS TotSt 78.49 +0.65 28.1
data under review. NN-Fund not tracked. NS-Fund didn’t exist at start of period. TMktIdxInstPrem 90.17 +0.75 28.3 TotalBd 10.48 -0.04 9.4 ShtDurIncm 4.20 -0.01 5.1 EqIndex 84.12 +0.16 28.6 ExtndAdml 94.28 +0.61 25.6 DivdGro 31.22 +0.19 28.7 VANGUARD INSTL FDS
USBdIdxInstPrem 11.91 -0.06 8.3 First Eagle Funds Lord Abbett I Growth 72.68 +0.37 27.3 GNMAAdml 10.54 -0.02 5.7 INSTTRF2020 24.45 +0.05 16.3 BalInst 39.03 +0.13 20.2
Fidelity Advisor I GlbA 60.42 +0.41 18.7 ShtDurInc p 4.20 -0.01 5.2 HelSci 84.12 +0.54 25.5 GrwthAdml 91.46 +0.46 33.4 INSTTRF2025 25.00 +0.08 18.1 DevMktsIndInst 14.03 +0.08 19.8
Thursday, December 12, 2019 Metropolitan West
NwInsghtI 34.19 +0.24 26.7 FPA Funds InstlCapG 44.73 +0.18 25.3 HlthCareAdml r 93.02 +0.63 21.0 INSTTRF2030 25.34 +0.10 19.3 DevMktsInxInst 21.92 +0.12 19.7
Net YTD Net YTD Net YTD 18.8 TotRetBd 10.92 -0.05 8.6
Fund NAV Chg %Ret Fund NAV Chg %Ret Fund NAV Chg %Ret Fidelity Freedom FPACres 34.45 +0.27 IntlStk 18.53 +0.15 23.8 HYCorAdml r 5.94 +0.01 15.2 INSTTRF2035 25.68 +0.13 20.6 ExtndInst 94.28 +0.62 25.6
TotRetBdI 10.92 -0.05 8.8
FF2020 16.63 +0.07 16.5 Franklin A1 MidCap 98.59 +0.83 29.1 InfProAd 26.09 -0.13 7.8 INSTTRF2040 26.02 +0.15 21.8 GrwthInst 91.47 +0.46 33.4
American Century Inv AggBdInst 11.21 -0.05 9.1 IntSmCo 19.08 +0.06 20.9 TRBdPlan 10.27 -0.05 8.9 IntlGrAdml 100.95 +0.91 27.4 InPrSeIn 10.63 -0.05 7.8
FF2025 14.58 +0.07 17.8 CA TF A1 p 7.65 -0.01 9.0 N Inc 9.70 -0.03 9.0 INSTTRF2045 26.27 +0.17 22.7
Ultra 52.91 +0.25 30.9 CorBdInst 11.55 -0.06 9.7 IntSmVa 19.43 +0.10 18.1 MFS Funds Class I ITBondAdml 11.80 -0.06 9.9 InstIdx 287.89 +2.48 28.8
FF2030 18.16 +0.11 19.9 IncomeA1 p 2.31 +0.01 13.8 NHoriz 64.87 -0.17 34.6 INSTTRF2050 26.30 +0.17 22.7
American Funds Cl A BlackRock Funds LgCo 24.56 +0.21 28.8 ValueI 44.76 +0.48 28.2 ITIGradeAdml 10.02 -0.04 10.0 InstPlus 287.92 +2.49 28.9
Freedom2020 K 16.61 +0.06 16.5 FrankTemp/Frank Adv OverS SF r 11.24 +0.09 20.9 IntlVal 37.86 +0.37 17.9
AmcpA p 34.20 +0.27 23.3 HiYldBd Inst 7.73 +0.01 14.2 TAUSCoreEq2 20.25 +0.22 27.4 MFS Funds Instl LTGradeAdml 11.13 -0.11 20.7 InstTStPlus 68.24 +0.56 28.3
Freedom2025 K 14.56 +0.07 17.8 IncomeAdv 2.29 +0.01 14.0
IntlEq 27.23 -0.74 22.7
R2020 22.97 +0.09 17.6 LifeCon 21.06 +0.02 14.6
AMutlA p 44.29 +0.30 19.8 BlackRock Funds A US CoreEq1 25.97 +0.27 27.9 R2025 MidCpAdml 217.77 +1.59 28.6 MidCpInst 48.11 +0.35 28.6
Freedom2030 K 18.14 +0.10 19.9 FrankTemp/Franklin A Northern Funds
18.37 +0.09 19.1 LifeGro 36.00 +0.19 21.0
BalA p 28.83 +0.12 17.4 GlblAlloc p 19.58 ... 15.1 US CoreEq2 23.86 +0.27 27.2 RisDv A p 68.52 +0.60 27.8 R2030 26.85 +0.15 20.4 MuHYAdml 11.79 -0.01 9.2 MidCpIstPl 237.27 +1.74 28.6
BondA p US Small Freedom2035 K 15.25 +0.12 22.2 StkIdx 36.76 +0.32 28.7 LifeMod 28.91 +0.09 17.8
RealEstaInstl 19.82 -0.27
13.23 -0.05 7.6 BlackRock Funds Inst 35.51 +0.42 20.3
R2035 MuIntAdml 14.48 -0.01 6.8 24.2
CapIBA p Freedom2040 K 10.67 +0.10 23.1 FrankTemp/Franklin C Nuveen Cl I 19.74 +0.12 21.4 PrmcpCor 29.51 +0.41 26.1 SmCapInst 78.47 +0.60
63.46 +0.26 15.5 EqtyDivd 20.57 +0.25 25.6 US SmCpVal 34.83 +0.51 17.0 MuLTAdml 11.97 -0.01 8.6 25.3
Fidelity Invest Income C t 2.34 +0.01 13.0
HYMunBd 18.00 -0.01 11.9 R2040 28.17 +0.19 22.3 STAR 28.38 +0.13 20.5 STIGradeInst 10.71 -0.02
CapWGrA 51.54 +0.41 22.3 MultiAstIncome 10.90 ... 12.8 US TgdVal 23.59 +0.39 20.2 MuLtdAdml 11.08 -0.01 3.9 5.5
Balanc 24.80 +0.14 22.3 FrankTemp/Temp Adv Oakmark Funds Invest Value 37.98 +0.47 24.2 TgtRe2015 15.77 +0.01 13.8 STIPSIxins 24.77 -0.03
EupacA p 55.99 +0.53 24.3 StratIncOpptyIns 9.92 ... 6.7 USLgVa 39.10 +0.59 23.7 MuShtAdml 15.85 ... 2.4 4.4
FdInvA p 64.08 +0.60 24.8 Bridge Builder Trust Dodge & Cox BluCh 104.92 +0.75 29.5 GlBondAdv p 10.59 ... -0.8 OakmrkInt 24.36 -0.16 19.1 PRIMECAP Odyssey Fds
PrmcpAdml r151.82 +2.10 25.5 TgtRe2020 33.28 +0.07 16.2 TotBdInst 11.04 -0.05 8.5
GwthA p 53.39 +0.33 24.9 CoreBond 10.44 -0.05 8.8 Balanced 106.01 +1.21 18.6 Contra 13.81 +0.08 26.5 Guggenheim Funds Tru Old Westbury Fds AggGrowth r 46.58 +0.40 21.6
RealEstatAdml128.02 -1.78 24.1 TgtRe2025 20.08 +0.06 18.0 TotBdInst2 11.00 -0.05 8.4
HI TrA p 9.98 +0.03 10.3 CorePlusBond 10.31 -0.04 8.9 GblStock 13.39 +0.22 21.4 ContraK 13.82 +0.07 26.6 TotRtnBdFdClInst 27.14 -0.12 4.6 LrgCpStr 14.77 +0.10 22.7 Growth r 42.35 +0.55 21.9
SmCapAdml 78.47 +0.60 25.2 TgtRe2030 36.76 +0.14 19.3 TotBdInstPl 11.04 -0.05 8.5
ICAA p 40.61 +0.31 21.6 Intl Eq 12.02 +0.11 20.7 Income 14.15 -0.05 9.3 CpInc r 10.17 +0.06 17.8 Harbor Funds Parnassus Fds Stock r 36.18 +0.56 25.8
SmGthAdml 68.62 +0.28 30.1 TgtRe2035 22.67 +0.11 20.5 TotIntBdIdxInst 34.76 -0.10 7.9
IncoA p 23.66 +0.12 17.3 Del Invest Instl Intl Stk 44.19 +0.54 19.7 GroCo 21.53 +0.12 34.4 CapApInst 80.06 +0.21 29.2 ParnEqFd 46.64 +0.44 29.3 Schwab Funds
STBondAdml 10.55 -0.02 4.5 TgtRe2040 39.31 +0.23 21.7 TotIntlInstIdx r118.10 +0.81 18.8
N PerA p 47.74 +0.36 26.7 Value 22.79 +0.23 18.1 Stock 203.02 +3.66 23.3 GrowCoK 21.56 +0.12 34.5 Harding Loevner PGIM Funds Cl Z 1000 Inv r 71.83 +0.59 28.8 STIGradeAdml 10.71 -0.02 5.5 TgtRe2045 24.78 +0.17 22.6 TotItlInstPlId r118.13 +0.81 18.8
NEcoA p 47.91 +0.45 23.4 Dimensional Fds DoubleLine Funds InvGrBd 11.56 -0.05 9.4 IntlEq NA ... NA TotalReturnBond NA ... NA S&P Sel 49.35 +0.43 28.8 TotBdAdml 11.04 -0.05 8.4 TgtRe2050 39.87 +0.26 22.6 TotStInst 78.54 +0.64 28.2
NwWrldA 71.55 +0.78 24.7 5GlbFxdInc 10.97 -0.01 4.0 CoreFxdIncmI 11.07 -0.04 7.6 LowP r 49.52 +0.48 23.3 Invesco Funds A PIMCO Fds Instl TSM Sel r 55.90 +0.46 28.3 TotIntBdIdxAdm 23.16 -0.07 7.9 TgtRet2055 43.28 +0.28 22.6 ValueInst 46.53 +0.53 24.2
SmCpA p 59.88 +0.26 27.7 DFARlEst 39.89 -0.61 23.3 TotRetBdI 10.66 -0.03 5.8 Magin 11.35 +0.03 27.9 EqIncA 10.69 +0.09 18.6 AllAsset 11.85 +0.04 NA TIAA/CREF Funds TotIntlAdmIdx r 29.53 +0.20 18.8 TgtRetInc 14.10 ... 12.3 WCM Focus Funds
TxExA p 13.34 -0.01 7.1 EmgMktVa 28.13 +0.36 6.4 Edgewood Growth Instituti OTC 12.56 +0.08 35.3 Invesco Funds Y TotRt 10.38 -0.07 8.0 BdIdxInst 11.10 -0.05 8.1 TotStAdml 78.53 +0.65 28.2 TotIntBdIxInv 11.59 -0.03 7.9 WCMFocIntlGrwIns 18.51 +0.13 32.3
WshA p 49.04 +0.42 23.4 EmMktCorEq 21.15 +0.30 12.1 EdgewoodGrInst 37.26 ... 29.4 Puritn 22.60 +0.09 19.1 DevMktY 45.39 +0.57 20.8 PIMCO Funds A VANGUARD ADMIRAL TxMCapAdml163.45 +1.35 28.9 WellsI 27.59 ... 15.4 Western Asset
Baird Funds IntlCoreEq 13.65 +0.07 19.4 Fidelity SAIUSQtyIdx 14.67 +0.09 31.4 JPMorgan I Class IncomeFd NA ... NA 500Adml 293.59 +2.54 28.8 TxMIn r 14.01 +0.08 19.7 Welltn 44.04 +0.19 21.0 CorePlusBdI NA ... NA
 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.

B10 | Friday, December 13, 2019 * *** THE WALL STREET JOURNAL.

BANKING & FINANCE

Banks Earned Low Fees on Aramco IPO

Underwriters saw could be expected due to the
Saudi government last month
shortfall as focus of abandoning plans to market
sale shifted to local the issue to international in-
vestors.
investors That move came after many
international investors balked
BY BEN DUMMETT at valuing Aramco at Prince
AND JULIE STEINBERG Mohammed’s initial target val-
uation of $2 trillion. In re-
The bulk of the banks lead- sponse, the energy producer
ing the Aramco deal earned lowered its target valuation to
small fees of between $3 mil- $1.6 trillion to $1.7 trillion and
lion and $4 million each for decided to focus selling the is-
their roles in the world’s larg- sue to a local and regional in-
est-ever IPO, according to peo- dividual and institutional in-
ple familiar with the matter, vestor community, a strategy
after the company sidelined it has continued to pursue to
the banks as it switched its fo- boost Aramco’s valuation since
cus to local investors. it started trading on the Saudi
The Saudi government Tadawul exchange Wednesday.
briefly achieved its coveted $2 Typically, an IPO of
trillion valuation for Aramco Aramco’s huge size would give
Thursday. the company leverage to nego-
Saudi Arabian Oil Co., as tiate some sort of discounted
Aramco is officially known, underwriting fees. High-profile
had tasked nine investment IPOs such as Facebook Inc.’s

AMR NABIL/ASSOCIATED PRESS

banks with leading the offer- 2012 IPO generated underwrit-
ing, which earlier this month ing fees of 1.1% of the offering
raised $25.6 billion for the size. That is at the low end of
Saudi government from the the 1% to 7% range that banks
sale of a 1.5% stake. can command depending on
That eclipsed Alibaba the IPO venue.
Group Holding Ltd.’s $25 bil- Aramco did even better. It is
lion IPO in 2014 as the world’s expected to pay a total fee of
biggest. A trader talks to others in front of a screen displaying Saudi stock market values at the Arab National Bank in Riyadh, around $54 million to the nine
Citigroup Inc., Morgan global coordinators, which rep-
Stanley, Credit Suisse Group following the payout of addi- PLC and local Saudi banks month placing those banks in work that might result from resents a fee of less than 1% of
AG, JPMorgan Chase & Co., tional incentive fees, some NCB Capital and Samba Capi- charge of overseeing orders Saudi Crown Prince Moham- the total offering size.
Goldman Sachs Group Inc. people familiar with the mat- tal, fared better, each earning for the offering. med bin Salman’s plan to di- Still, the ultimate fees
and Bank of America Corp. ter said. at least $10 million, according The big global banks had versify the country’s oil-de- earned by the underwriters
are each set to earn between Specifics around those pay- to a person familiar with the long coveted a role helping pendent economy. could increase if Aramco de-
$3 million and $4 million for outs couldn’t be learned. matter. sell Aramco’s IPO, both for the The IPO fees were never ex- cides to seek an international
their work. The three other global un- These higher fees resulted fees on the deal itself and for pected to be that large, but listing and use the same group
Those totals may increase derwriters, HSBC Holdings in part from Aramco last additional advisory and other they still fell short of what of banks for that effort.

Winter Chill Sends Natural Gas Up Regulators Seek to

BY RYAN DEZEMBER

Forecasts for cooler

Revamp Rules on
weather to close out the
month buoyed natural-gas
prices, halting a slide that has
trimmed roughly 20% off the
Loans in Poor Areas
cost of the heating fuel since BY ANDREW ACKERMAN ate-income communities,” the
early November. Fed said in a statement after
Natural-gas futures for WASHINGTON—Federal reg- the overhaul was announced.
January delivery rose 3.8% to ulators on Thursday proposed “No decisions have been made
$2.328 per million British an overhaul of rules governing about how the Federal Reserve
thermal units. That is down how banks lend hundreds of bil- will proceed.”
about 44% from a year earlier lions of dollars in low-income Advocacy groups and some
and still the lowest mid-De- neighborhoods, setting up a House Democrats, including
cember level in four years, potential break with the Federal Maxine Waters of California,
but the forecast for chilly Reserve. chairwoman of the Financial
MARK MORAN/THE CITIZENS’ VOICE/ASSOCIATED PRESS

temperatures allayed fears The overhaul is a priority for Services Committee, say the
among traders and analysts of Comptroller of the Currency Jo- plan could inadvertently re-
an drop below $2. seph Otting, who says it will strict lending in low-income ar-
“From a selloff perspective, boost lending under the Com- eas. And some bank lobbyists
the big move has happened,” munity Reinvestment Act and have privately expressed con-
said Ron Ozer, chief invest- make existing requirements cern it will increase costs of
ment officer at Statar Capital, more transparent and consis- compliance with the act.
a gas-focused hedge fund. tent. The act requires banks to Mr. Otting dismissed those
“The market is very short so serve borrowers of all income concerns. “If you don’t like this,
getting a material move lower levels in their communities. you are either economically ad-
would need warm weather.” The plan is backed by a sec- vantaged by the current struc-
Hedge funds and other ond regulator, the Federal De- ture or you don’t understand
money managers have built posit Insurance Corp., but not it,” he said this week. In discus-
up one of the biggest short by the Fed, which is consider- sions with major banks, “nine
trades, or bets that natural- Some hedge funds have built up a large short position, betting prices of the commodity will fall. ing a separate overhaul, ac- out of 10 are supportive of the
gas prices will fall, of the past cording to people familiar with direction we’re heading.”
decade, according to Com- week temperature forecasts week. That was a little less years of records on all sides the central bank’s thinking. In 2014, community groups
modity Futures Trading Com- lower for the eastern half of than some analysts had ex- of the balance, supply growth Community groups have also opposed the acquisition of One-
mission data. the country. pected. Yet the withdrawal is beginning to slow and ex- objected to the plan. West Bank by CIT Group Inc.
The bearish wager rivals in “The general idea is to go a brought stockpiles in line ports are picking up.” Officials at all three regula- Mr. Otting was chief executive
size a big short that was put bit colder in the 6-10 day with their five-year average. Elsewhere in energy mar- tors say they hope they can ulti- of OneWest at the time, and
on in August and subse- (forecast) and slow down the Analysts with RBC Capital kets oil prices rose on re- mately agree on a plan. “We Steven Mnuchin, now Treasury
quently blown out by an un- warming trends in the 11-15 Markets on Wednesday low- newed hopes for a trade deal worked very hard to try to get secretary, was chairman. One-
characteristically steamy Sep- day (forecast),” Commodity ered their predictions for av- between the U.S. and China aligned with the OCC on a pro- West was accused of abusing
tember that amped up Weather Group wrote in a erage gas prices for the cur- and an International Energy posal, and my hope is that we homeowners during the fore-
demand for gas to power air note to clients. rent quarter, to $2.60 per Agency report that projected can still do that,” Fed Chairman closure process, a charge the
conditioners. Forecasts like that were million British thermal units slower supply growth next Jerome Powell said Wednesday. bank disputed. The merger
A significantly colder turn enough for traders to shrug and next year more than 20 year. “I don’t know whether that will went through, but Mr. Otting
to temperatures could risk off a mildly bearish report cents to $2.63, yet warned cli- West Texas Intermediate, be possible or not.” has since made an overhaul of
the current wager on declin- from the U.S. Energy Informa- ents from getting too bearish. the U.S. benchmark, closed up Friction over the proposal the CRA a priority.
ing prices. Meteorologists tion Administration that de- “We continue to believe 0.7% at $59.18 a barrel. Brent between the Fed and OCC has In an acknowledgment that
that cater to traders on tailed a 73-billion-cubic-foot that there is upside,” they crude, the global price, gained been palpable behind the the proposed framework could
Thursday nudged their two- draw from gas stockpiles last wrote. “In our view, after 0.75% to settle at $64.20. scenes. In November, Mr. Otting be costly to banks, the OCC and
sent an email to Fed governor FDIC said lenders with less than
Lael Brainard, who is leading $500 million in assets could opt
PayPal Sues on
Card Regulation
Global Oil Supply Seen Rising Fed efforts on the issue, saying
the central bank was slow-
walking the overhaul, according
to people familiar with the
out. That threshold would cover
about three-quarters of banks
overseen by the FDIC, though
the firms generate a fraction of
BY YUKA HAYASHI BY DAVID HODARI ket, the IEA said, adding that gains for Kuwait, Ecuador and message. Fed officials objected the $480 billion in annual CRA
it was leaving unchanged its cut-exempt Venezuela, were to that characterization and lending and investment.
WASHINGTON— PayPal Global oil inventories will oil-demand growth forecasts balanced by small decreases said the OCC was moving for- The CRA was passed in 1977
Holdings Inc. sued a federal rise in the first quarter despite for this year and next. from several other countries. ward with a plan that lacks an- to combat redlining, a practice
banking regulator, alleging that attempts by the Organization The IEA said it was reduc- The IEA’s report came the alytical rigor, the people said. in which banks wouldn’t lend in
its new rule has hampered the of the Petroleum Exporting ing its production growth fore- day after OPEC released its “Any modernization of the lower-income communities.
company’s ability to offer credit Countries and its allies to bal- cast “to take account of lower own monthly market report, in Community Reinvestment Act Regulators and Congress have
products and has created con- ance the market, the Interna- output from participants in which the cartel also held its must further the goal at the turned the act into a public test
fusion among users of its popu- tional Energy Agency said the OPEC+ deal and a weaker demand-growth forecasts for heart of the statute—encourag- evaluating how many loans,
lar digital-payment services Thursday. growth outlook for Brazil, 2019 and 2020, while holding ing banks to meet the credit branches and investments a
PayPal and Venmo. In its closely watched oil- Ghana and the United States.” its non-OPEC supply growth needs of local low- and moder- bank has to serve the poor.
The lawsuit challenges the market report, the IEA said it A stagnant oil price, partly forecast at 2.17 million barrels
regulation rolled out by the was trimming its 2020 non- driven by heavy supply from a day.
Consumer Financial Protection OPEC oil supply-growth fore- the U.S.—which became a net The two reports also took
Bureau in April. While the rule’s cast by 200,000 barrels a day exporter in September—was relatively similar stances on
aim is to improve consumer to 2.1 million barrels. one of the drivers of the new global trade.
protection for prepaid payment However, it still expects OPEC+ deal. Even so, “the Torpid economic growth,
cards, it also extends to “digital global inventories to increase market has done its own sums partly thanks to the trade war
wallets,” any financial products by 700,000 barrels a day in and the reaction to oil’s new between the U.S. and China,
capable of holding cash bal- the first three months of next deal has so far been muted,” has been cited as a drag on
ances on cards or devices. year. the agency noted. oil-demand growth in numer-
ANNA MONEYMAKER/BLOOMBERG NEWS

As a result, the rule brought The agency’s prediction As a whole, the cartel’s pro- ous reports from the two or-
under its coverage digital-pay- came despite last week’s news duction slipped 300,000 bar- ganizations in 2019.
ment tools such as PayPal and that OPEC and its allies had rels a day in November, with On Wednesday, OPEC said
Venmo, despite the industry’s agreed to a new production Saudi output down by the the “global trade slowdown
claim that digital wallets are deal to deepen oil-output cuts same amount after the na- has likely bottomed out,” and
fundamentally different from by a further 500,000 barrels a tion’s production swung wildly the IEA echoed that view on
prepaid cards. Apple Cash, Ap- day through the end of March. after attacks on processing fa- Thursday.
ple’s payment app, comes under That move means the coali- cilities at Abqaiq and Khurais Brent crude, the global
the rule’s oversight, while Apple tion will hold back roughly 1.7 that temporarily downed 5% of benchmark, settled 0.5%
Pay, which doesn’t store money, million barrels a day from global supply. higher at $64.20 a barrel,
doesn’t. The CFPB didn’t re- global oil markets, but it won’t The rest of the cartel’s while U.S. crude rose 0.7% to Comptroller of the Currency Joseph Otting wants to boost bank
spond to requests for comment. be enough to balance the mar- movements, including slight $59.18 a barrel. lending under the Community Reinvestment Act.
 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.

THE WALL STREET JOURNAL. * * * * Friday, December 13, 2019 | B11

MARKETS

Pound
Surges
Stocks Rally as China Deal Nears
BY ALEXANDER OSIPOVICH came ahead of a Sunday dead- Index performance Investors were also watch-
AND CAITLIN OSTROFF
On Polls Stocks climbed after Presi-
line when a new round of tar-
iffs are set to go into effect on
roughly $156 billion of Chinese
1.00%
ing the U.K.’s general election,
as voters went to the polls to
determine whether Prime Min-
BY CAITLIN OSTROFF dent Trump said on Twitter goods. ister Boris Johnson will re-
AND ANNA ISAAC that the U.S. and China are The Journal reported that 0.75 main in office.
nearing a trade deal. U.S. negotiators offered to cut Politicians in both the ma-
The British pound rose Major indexes jumped after existing tariff rates by as much jor political parties are signal-
sharply Thursday evening as Mr. Trump tweeted, “Getting as 50% on $360 billion of Chi- ing an end to years of con-
exit-poll results from the Brit- VERY close to a BIG DEAL nese imports, citing people fa- 0.50 strained fiscal policy as the
ish election pointed to a strong with China. miliar with the matter. The ne- country prepares to exit from
victory for Boris Johnson’s THURSDAY’S They want it, gotiators also offered to cancel the European Union, and the
Conservative MARKETS and so do we!” the new tariffs set to take ef- 0.25 vote results will play a role in
CURRENCIES Party. The Wall fect Dec. 15, those people said. determining the course of
Late Thurs- Street Journal reported after The tariffs, which threaten Brexit.
day, the pound was up 2.3% to the market closed that Mr. to deepen China’s economic S&P 500 Although a parliamentary
$1.346, its highest level since Trump is preparing to clinch a problems and prompt retalia- 0 Dow industrials majority for the Conservative
May 2018. The euro rose 0.4% limited agreement that would tory action, could weigh on Nasdaq Composite Party is seen as most likely,
against the dollar, buying roll back existing tariffs on prices of cellphones, laptops recent polls have shown that
$1.1175, as Mr. Johnson’s vic- Chinese goods and cancel new and apparel for American con- –0.25 Mr. Johnson’s lead has nar-
tory was seen as likely to bring levies set to take effect Sun- sumers. rowed.
9:30 noon 2 4
some near-term certainty to day, according to a person fa- Investors sold government The pound surged against
the U.K.’s departure from the miliar with the matter. bonds in favor of riskier assets Source: FactSet the dollar after exit polls pro-
European Union—the Brexit The Dow Jones Industrial after Mr. Trump’s tweet. The jected a Conservative majority,
process that has dogged the re- Average rose 220.75 points, or yield on the 10-year U.S. Trea- gist at Charles Schwab. “The strong U.S. jobs market. Initial making a Brexit deal more
gion with uncertainty for more 0.8%, to 28132.05. The S&P sury note rose to 1.901%, from markets are keying off any in- jobless claims can be volatile, likely. The FTSE 100 gained
than three years. 500 gained 26.94 points, or 1.786% on Wednesday. Bond dication as to whether we’ll and jitters over the report 0.8%, outpacing other Euro-
Asian stocks rallied early 0.9%, to 3168.57, while the yields move in the opposite di- get a deal, perhaps more than were quickly dispelled by opti- pean markets.
Friday. At midday in Tokyo, Nasdaq Composite advanced rection from prices. they should.” mism over trade. The European Central Bank
Japan’s Nikkei 225 was up 63.27 points, or 0.7%, to Gold futures fell 0.2% to The Labor Department said Shares of Facebook fell under its new president, Chris-
2.4%, on pace for its best ses- 8717.32. $1,466.70 a troy ounce and U.S. Thursday that the number of $5.51, or 2.7%, to $196.75 after tine Lagarde, left interest rates
sion since February. Hong Both the S&P and the Nas- crude-oil futures gained 0.7% Americans applying for first- the Journal reported that the unchanged at minus 0.5%, a
Kong’s Hang Seng Index was daq closed at records, while to $59.18 a barrel. time unemployment benefits Federal Trade Commission was day after the Federal Reserve
up 1.8% and the Shanghai Com- the Dow ended the day within “We’re in a waiting pattern, jumped to the highest level in considering seeking a prelimi- also held rates steady.
posite was up 1.1%. 0.1% of its previous closing given the looming trade dead- more than two years. nary injunction against the so- The benchmark Stoxx Eu-
“The geopolitical risks high, set last month. line,” said Jeffrey Kleintop, The report contrasted with cial-media company over anti- rope 600 gained 0.3%. Asian
thought to be strangling world The president’s comments chief global investment strate- other recent data showing a trust concerns. stocks rallied early Friday.
economic growth, incredibly,
just in the last 24 hours, seem

Casino and Chemical Shares Get Trade Boost

to be closer to getting resolved
in a big, big way,” said Chris
Rupkey, chief financial econo-
mist at MUFG. “The outlook in
2020 looks better than it has BY AKANE OTANI
in months.”
The WSJ Dollar Index fell Shares of companies sensi-
0.4% to 89.99, the lowest since tive to U.S.-China trade policy
July. Mansoor Mohi-uddin, se- are rallying on hopes that the
nior macro strategist at two countries may be nearing
NatWest Markets, said a U.S.- an agreement.
China trade deal, Britain’s pos- The S&P 500
sible orderly exit from the EU
ABREAST OF climbed 0.9%
and looser monetary policy in
THE MARKET Thursday after
the U.S. and Europe together President
set the stage for a selloff in the Trump said a trade deal with
dollar. China was close, and The Wall
The pound is often seen as a Street Journal reported U.S.
barometer for the U.K.’s politi- negotiators had offered to can-
cal fortunes and the effect the cel fresh tariffs on Chinese
U.K’s exit from the EU will have goods that were set to take
on the economy. Mr. Johnson’s place Sunday.
Brexit plan is to take the U.K. A few categories of stocks
out of the EU by Jan. 31. got an even bigger boost.
The EU-U.K. trading rela- Wynn Resorts Ltd. and Las
tionship will remain unchanged Vegas Sands Corp. rose 9.5%
at least through the end of and 5%, respectively. The ca-
2020 under the plan as sino companies both operate
Brussels and London hash out resorts in Macau, a semiauton-
a long-term agreement over omous region of China, mak-
immigration, tariffs and finan- ing them sensitive to Washing-
EDUARDO LEAL/BLOOMBERG NEWS

cial flows. ton and Beijing’s trade rift.

Before the election, market Chemicals companies also
observers expected a Johnson jumped. Shares of Dow Inc.,
victory to boost the pound and which makes chemical prod-
U.K. stocks. ucts used in industries ranging
ING Bank expects the pound from agriculture to consumer
could hit $1.35 if there is a goods, added 2.5%. The com-
Conservative majority. The pany had cut its full-year
bank had expected the pound spending forecast over the
would fall to $1.26 or $1.24 if summer, citing the prolonged Shares of Las Vegas Sands, which owns the Parisian Macao casino resort, rose 5% Thursday on hopes for a U.S.-China trade deal.
there is a hung Parliament or U.S.-China trade fight.
Labour Party majority, respec- Another group getting a clears the picture stands to Semiconductor firms, trade fight between the U.S. growth, which is already ex-
tively. Citigroup predicted that boost Thursday: industrial benefit farms and the compa- whose profits rely in part on and China, traders remain sen- pected to slow in 2020, could
sterling would reach $1.40 in stocks. One of the key snags in nies that make equipment for demand from China, also out- sitive to indications that the dim further if U.S.-China talks
2020, bolstered by a Conserva- the U.S. and China’s trade ne- them. performed the broader mar- two sides could be getting collapse.
tive majority bringing certainty gotiations over the past few Deere & Co., which manu- ket. Shares of Nvidia Corp. closer to a resolution. Multinational companies
to the market. months has been disagree- factures equipment for farm- added 3.2%, while Micron Analysts believe the U.S. have also cited uncertainty
—Steven Russolillo ment over the level of farm ers and construction compa- Technology Inc. rose 3.5%. economy remains on solid around tariffs as a reason to
and Joanne Chu purchases China should make nies, rose 2.4%. Caterpillar Thursday’s moves showed footing heading into the new delay or pull back on plans to
contributed to this article. from the U.S. A trade deal that Inc. advanced 1.9%. how, more than a year into a year. But they warn that expand overseas.

Analysts Yield on the 10-year Treasury note

Forecasts made in December 2018 and November 2019
tinue to provide a source of
friction for this long.
“Most people—and I’m in-
Treasurys Take Their
Disagree 4% cluding myself—thought we’d
see a trade deal by now,” said
Steven Blitz, chief U.S. econo-
Biggest Fall Since ’16
On Yield Darker dots indicate
multiple forecasts
mist at TS Lombard.
A surge in business and
consumer confidence stem-
BY DANIEL KRUGER 0.267% compared with negative
0.323% Wednesday.
ming from a preliminary trade Signs that the U.S. and China Yields, which rise when
Average forecast deal is likely to spur growth
Continued from page B1 were nearing a trade deal bond prices slip, climbed after
from corporate bonds to home next year, leading to improved sparked a surge in government President Trump tweeted that
mortgages. The yield tends to 3 risk appetite among investors bond yields world-wide Thurs- the U.S. and China were getting
rise when investors feel opti- and reducing the demand for day, sending the yield on the very close to a trade deal.
mistic about growth and infla- the safety of government benchmark 10-year Treasury The deal was said to be a
tion and fall when they are ner- bonds, Mr. Blitz said. He said note to its biggest one-day gain limited agreement, known as
vous about the future. he is predicting the 10-year in more than three “phase one,” that would fore-
In eight of the past 10 yield will climb to about 2.5%. CREDIT years. stall new tariffs set to take ef-
years, economists surveyed by Mr. Blitz said the important MARKETS The yield on the fect Saturday and roll back ex-
the Journal predicted the 10- thing for investors was to take benchmark 10-year isting tariffs, according to a
year yield would rise higher a first step and that the Treasury note soared to 1.901% person familiar with the mat-
than it did. “thornier aspects” of the trade from 1.786% Wednesday—its ter, The Wall Street Journal re-
2
If you are an analyst at an dispute, such as intellectual- largest single-session climb ported Thursday.
investment bank, “no one will property rights, can be ad- since the day after the 2016 Investors have frequently re-
ever fault you for being an op- Actual yield dressed in a subsequent deal. U.S. presidential election, ac- treated to the safety of govern-
timist,” said Peter Atwater, a “With plenty of fits and cording to Tradeweb. The yield ment debt at times of trade
finance professor at The Col- starts and histrionics along on the German 10-year govern- frictions between the world’s
lege of William & Mary. the way, you’re moving from ment bond rose to negative two largest economies.
“Higher yields represent opti- disorder to order,” he said.
mism.” Other economists aren’t as
While the range of forecasts convinced policy makers have U.S. Sets Debt Sales  Wednesday: $18 billion in
is broader than last year’s, 1 mitigated slowing growth. one-year, 10-month 0.30% float-
most economists are predict- 2019 ’20 ’21 ’22 While job growth in recent The Treasury Department will ing-rate notes, a reopening of an
ing that the economy will con- Sources: WSJ Survey of Economists (predictions); Tullett Prebon (actual) months has exceeded expecta- auction $111 billion in securities issue dated Oct. 31, 2019, matur-
tinue to grow at a pace close James Benedict/THE WALL STREET JOURNAL tions, Lindsey Piegza, chief next week. Details (all with mini- ing Oct. 31, 2021. Cusip number:
to this year’s expansion of economist at Stifel Financial, is mum denominations of $100): 912828YN4. Noncompetitive ten-
about 2% and that the Federal Some are unsure whether the potential for such a wide range skeptical that the Fed’s three  Monday: $42 billion in 13- ders must be received by 11 a.m.
Reserve will likely keep inter- Fed’s rate cuts did enough to of policy outcomes,” said Mike rate cuts this year have done week bills, dated Dec. 19, 2019, Monday; competitive tenders, by
est rates steady after cutting brace the economy for slower Pyle, global chief investment enough to sustain the economy maturing March 19, 2020. Cusip 11:30 a.m.
them three times this year. global growth. And the U.S. strategist at BlackRock Inc. into 2020. number: 912796TL3.  Thursday: $15 billion in
Analysts remain divided presidential election could lead “That is a naturally uncertain She pointed to the slowing Also, $36 billion in 26-week four-year, 10-month Treasury in-
about how developments this to changes in tax and spending environment for investors.” pace of wage growth as a sign bills, dated Dec. 19, 2019, matur- flation-protected securities,
year will play out in 2020. The policies. Trade has been an impor- of a slowdown. She is predict- ing June 18, 2020. Cusip num- dated Dec. 31, 2019, maturing
potential for a limited trade “The policy outcomes that tant variable affecting inves- ing the 10-year Treasury yield ber: 912796SV2. Oct. 15, 2024. Cusip number:
agreement between the U.S. could come out of the 2020 tors’ predictions for bond will fall to 1.55%. Noncompetitive tenders for 912828YL8. Noncompetitive ten-
and China could ease tensions election are historically diver- yields. Few economists thought “My biggest concern is pro- both issues must be received by ders must be received by noon
that contributed to this year’s gent—it’s probably about 40, that the negotiations between longed anemic growth,” Ms. 11 a.m. EST Monday and com- Thursday; competitive tenders,
global economic slowdown. 50 years since we’ve seen the the U.S. and China would con- Piegza said. petitive tenders, by 11:30 a.m. by 1 p.m.
 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.

B12 | Friday, December 13, 2019 THE WALL STREET JOURNAL.

HEARD STREET ON
THE
FINANCIAL ANALYSIS & COMMENTARY

Share of U.S. cigarette

market by volume
Cisco
Puts Its
100%
Flavor
capsule

Chips in a
90

New Game
80
Menthol

70

Move could enable it to

60 crack a valuable market

50 Cisco Systems is finally thinking

outside the box—its own, to be
exact.
40
The network-equipment giant an-
nounced a new chip architecture
called Cisco Silicon One. Cisco has
Standard
long designed its own networking
30 cigarettes
chips, but those have typically only
been available if one bought its
equipment. The company said
20 Wednesday that its latest offerings
PETER KOVALEV/TASS/ZUMA PRESS

will be available through “disaggre-

gated business models”—meaning
customers can choose to buy just
10 the chips themselves.
That is a notable move that
could allow Cisco to crack a key
0 part of the networking market that
has eluded it to date. Companies
2013 ’14 ’15 ’16 ’17 ’18 ’19
such as Amazon, Microsoft, Google
An FDA plan to lower nicotine levels in all combustible cigarettes is just one headache the manufacturers face. Source: Euromonitor International and Facebook spend billions every
year on their own networks. But
they also prefer to buy chips di-

Cigarette Makers Can Stand the Heat rectly and design their own gear
tailor-made for their needs.
That has meant little opportunity
for Cisco in a large and growing
market. The four aforementioned
companies alone had about $83.4
The companies have more ways to cope with tougher U.S. tobacco rules than they receive credit for billion in capital expenditures and
capital leases for the 12-month pe-
The threat of stricter tobacco based on Euromonitor data. Re- lost a combined $110 billion from switch to nonmenthol cigarettes, riod ended in September, up 18%
controls in the U.S. has wiped bil- search shows that as menthol eases their stock-market valuations since buy from the black market or use from the same period a year earlier.
lions of dollars off the stock-market burning sensations in the throat, it the summer of 2017. BAT, which smokeless products such as e-ciga- That contrasts sharply with
valuations of big cigarette compa- may help turn first-timers into reg- generates over half of its U.S. reve- rettes. That means BAT could prob- other areas of the corporate tech-
nies. But they have more ways to ular smokers. Finally, since mid- nue from menthol brands such as ably claw back about half the £3.8 nology market. A CIO survey by
cope with the fallout than investors 2017 the FDA has been working on Newport, is particularly exposed. billion ($5.01 billion) in revenue it Morgan Stanley in October esti-
are giving them credit for. plans to lower nicotine levels in all Altria sells fewer menthol smokes currently makes from Newport mated that overall spending on In-
The biggest debate among to- combustible cigarettes to make but owns a 35% stake in e-cigarette menthol cigarettes, according to an- formation-technology hardware will
bacco shareholders today is how maker Juul Labs, which, as the alysts at brokerage Liberum. grow just 1.2% in 2020. Cisco’s own
much new rules in the U.S. will hurt brand of choice for high-school stu- Lower nicotine levels would have fiscal first-quarter results last
companies such as Altria and Brit- dents, is likely to be sharply cur- a more severe impact on the indus- month confirmed a “broad-based
ish American Tobacco.
Though shareholders tailed by new vaping rules. And all try. But they also would be a slowdown” expected to linger at
Tobacco regulation is likely to have braced for the worst, three players would be affected by tougher sell politically: Tobacco least into the early part of next
change in three ways. First, the U.S. lower nicotine levels. farmers would have to change their year. Analysts expect Cisco’s reve-
Food and Drug Administration will
companies have time to Though shareholders have braced production and curing practices to nue to decline by 2% for the fiscal
decide by 2021 which e-cigarette prepare themselves. for the worst, companies have time reduce the nicotine content of their year ending in July.
brands can remain on the market to prepare. With the FDA focused crops. And, as with menthol, some It is too early to tell if Cisco’s
and under what terms. After years on the immediate vaping crisis for consumers would turn to illegal new unboxed approach will change
of falling youth smoking rates, the next 18 months, a menthol ban sellers for their fix. that. The company will be compet-
sharp marketing practices have them less addictive. While the tim- and nicotine limits could be de- As a multiple of projected earn- ing with other merchant silicon
hooked a new generation on nico- ing isn’t clear, investors expect a layed. Manufacturers will use the ings, Altria and BAT shares are providers such as Broadcom. Mi-
tine: 28% of high-school students menthol ban before new nicotine breathing space to make their trading around 30% below their 10- crosoft and Facebook have signed
now vape, according to the 2019 standards. heated tobacco and vaping products year averages. Changes to U.S. ciga- on as early customers. How much
National Youth Tobacco Survey. Cigarette companies that have more appealing to menthol smokers rette regulations aren’t good news those companies will buy remains
Second, the authorities want to sizable businesses in the U.S.—Al- in the event of a ban. for the sector, but investors risk ig- to be seen. But, in the cloud market
ban menthol cigarettes, which ac- tria, BAT and Imperial Brands— While some former menthol noring what big tobacco can do to at least, Cisco has nowhere to go
count for around 30% of U.S. sales, will be directly hit. The three have smokers may quit, others will likely reduce the harm. —Carol Ryan but up. —Dan Gallagher

The Real Chinese Debt Threat Is Surfacing Again Nestlé Sets Up a Sweeter
Chinese companies are defaulting
on bonds in record numbers. Should
investors be worried? Yes—but not
appear. That is because private-sec-
tor borrowers account for a tiny
percentage of corporate-bond debt,
dustrial firms have begun nosing
down in recent months as the prop-
erty and construction markets cool.
Ice-Cream Deal for Later
for the reasons you might think. and investors have long demanded The trailing 12-month return on as-
The default crisis in China is con- high yields to compensate for de- sets was just 3.7% in October. Nestlé’s latest deal should help Nestlé sales growth by product, 2018
centrated in the private sector, fault risk. Close to 90% of corporate One of the lessons from China’s it milk the softening ice-cream
which is suffering from the trade bonds outstanding are from state- corporate-bond blowup in 2015 and business for private-equity-style Nutrition and
war and, more important, a three- owned enterprises, whose default 2016 is that it doesn’t take much returns, perhaps ahead of a poten- health science
4.6%
year action against shadow banking rate Standard Chartered pegged at trouble in the state sector to make tial initial public offering in a few
that has punished private borrow- just 0.04% for the first 11 months of for big bond-market ructions. The years’ time. Pet care 4.5
ers. Their default rate on bonds was the year. SOE default rate only ticked up to The world’s largest food com-
nearly 4% in the first 11 months of The real threat to the bond mar- 0.15% in 2016, but that was enough pany said late Wednesday that it is Powdered
3.3
2019, up from 0.8% in 2017, accord- ket is that this latter number could to reprice the whole market and selling U.S. brands including Häa- drinks
ing to Standard Chartered. start rising. Tewoo Group, a com- make it nearly impossible for lower- gen-Dazs and Drumstick to Fron-
Confectionery 2.7
That has been matched by a modity trader owned by the Tianjin rated companies to issue bonds in eri, a joint venture it created in
steep fall in profits. On a 12-month- city government, on Thursday an- early 2016. 2016 with private-equity company
moving-average basis, nearly 18% of nounced the results of an offshore Yet there is a silver lining for in- PAI Partners to manage its Euro- Water 2.3
private industrial enterprises were debt restructuring, with a majority vestors: The need to avoid a repeat pean ice-cream assets.
losing money in October—the high- of investors accepting heavy losses, of the 2016 fiasco is one reason to The U.S. business, which logged Milk products
1.8
est number since at least 2002 and according to Bloomberg. This is the think that—despite policy makers’ sales of $1.8 billion in 2018, is go- and ice cream
up from just 11% in 2017. first offshore default and restruc- reluctance to push down rates and ing for $4 billion. The price equates Prepared
This is terrible news for China’s turing by a Chinese SOE in more some signs of improvement in sec- to roughly 15 times earnings before dishes
1.2
entrepreneurs and Chinese than 20 years, S&P notes. tors such as electronics—Chinese fi- interest, taxes, depreciation and
growth—but it matters less for After improvement in 2017 and nancial conditions will get easier amortization, according to people Source: the company
bond-market stability than it might 2018, returns at state-controlled in- next year. —Nathaniel Taplin close to the deal. That is low for
Nestlé, which got 20 times for the to around 20%. If it can do the
U.S. candy brands it sold to Italian same for the U.S. brands, which
confectioner Ferrero early last year. are currently 5 percentage points
OVERHEARD Still, it is a smart move. Frozen-
food assets can be hard to sell as
lower, the Swiss company will
share in any upside. Froneri’s lat-
they need an expensive chilled logis- est purchase is funded with lash-
tics network. Froneri owns around ings of debt, bringing borrowings
In her first policy meeting as will favor. could have been dubbed an os- one million freezers globally, includ- close to six times Ebitda.
head of the European Central Some central bankers are more trich instead. ing the ones that consumers see in The question is whether and how
Bank on Thursday, Christine comfortable with the ornithological Rather than revealing her convenience stores. While that keeps Nestlé will cash out of ice-cream al-
Lagarde delivered clear forward association than others. feathers now, Ms. barriers to entry high, it can also together. Froneri has done a num-
guidance for bird-watchers. “I don’t think I view Lagarde seems to limit the number of bidders when ber of deals over the past six years,
“I’m neither dove nor hawk and one as cooler than the prefer to mend frozen-food assets are on the block. advised by Rothschild. It is now the
my ambition is to be this owl that other—they manifest some bridges Add the fact that the U.S. ice- second-largest ice-cream player
is often associated with a little bit different elements of within an increasingly cream market is growing sales at a globally after Unilever, which owns
of wisdom,” said Ms. Lagarde. bird life,” Frederic divided ECB. “Each relatively sluggish 3% annually, Ben & Jerry’s and Magnum.
For decades, “dove” has been Mishkin, a Federal and every president and the Nestlé brands were never After buying Häagen-Dazs,
economic shorthand for central Reserve Board mem- has their own style going to command a huge price. Froneri will have close to $5 bil-
bankers who support easier mon- ber until 2008, once of communicating, But by keeping its 50% stake in a lion in annual sales. That could
DEDDEDA/DESIGN PICS/ZUMA PRESS

etary policy to support employ- said. At the other and I know you are now larger partnership, Nestlé can make it too big a mouthful for an-
ment, while “hawk” has referred end of the spec- eager to compare,” let Froneri do the legwork of get- other private-equity or consumer
to those who prioritize fighting in- trum, a former she told reporters. ting more value out of the busi- company. An IPO in the U.S. or Eu-
flation. Ms. Lagarde’s predecessor Bank of Eng- “[But] don’t over in- ness while it focuses on its strate- rope in a couple of years is proba-
Mario Draghi was a dove, and in- land rate-setter terpret, don’t sec- gic product categories, which bly more realistic.
vestors are now eager to figure privately ond-guess, don’t include coffee and pet food. All going well, Nestlé’s latest
out what kind of policy she wished he cross-reference.” Froneri has already increased sale has lined it up for a creamier
the Ebitda margins of existing valuation later.
brands in the Nestlé partnership —Carol Ryan
 MANSION
For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.

Frank Lloyd Norma Kamali

Wright Her first catwalk
The market for was for her
his homes varies mother. M12
greatly. M2

HOMES | MARKETS | PEOPLE | REDOS | SALES THE WALL STREET JOURNAL. Friday, December 13, 2019 | M1

Good Things 1,300 SQUARE FEET

In Small Packages
Jewel-box homes may be modest in size, but when it comes
to their interiors, they are anything but understated NEW
A wraparound
mahogany deck
and cedar-
shingle siding
PURCHASED IN 2014 FOR

$576,000
MAKEOVER

$265,000

EMILY ASSIRAN FOR THE WALL STREET JOURNAL (4); ISTOCK (2, HOUSE ILLUSTRATION; BOX)
White
Macaubas
quartzite counters,
Ann Sacks tile,
Gaggenau
appliances

Hunter Frick and his partner, Gabriel Fernandez, with their dog Huey, below right. Their 1970s ranch house in East Hampton, N.Y., top, originally was a kit home that was gut-renovated.

BY AMY GAMERMAN struction luxury homes at 3,000

A
square feet or less has increased
miniature dachshund nearly 20% since 2013—with a corre-
named Huey played a big sponding decline in
part in Hunter Frick’s de- larger-size, high-
cision to buy a 1,300- price homes.
square-foot, 1970s ranch Changing de-
house in East Hampton, N.Y., instead Fireplace mographics
of one of the many large newer homes surround of might be
he looked at. So did a fear of too ocean-gray marble driving the
many weekend guests. with a subtle trend. More
“Huey can’t do stairs,” said Mr. wave pattern than half of
Frick, 37, a senior vice president of all households
development marketing for Halstead now consist of
real estate who splits his time be- single people or
tween the Hamptons and New York couples, U.S. Census
City. “And anything over four people Bureau data shows—
and you’re taking multiple cars to go with traditional nu-
to the beach, or hiring a chef to cook.” clear families ac-
So after buying the three-bedroom counting for just 20%.
house for $576,000 in 2014, Mr. Frick “Empty-nesters want to downsize,
gave it a $265,000 makeover, putting in a new on a fourth, or 10th, bedroom,” he said. but they want luxury homes not starter homes—
kitchen with quartzite counters and Gaggenau ap- The jewel-box home—small, but loaded with luxury kitchens, marble surfaces, all the latest and
pliances, a marble bar and a mahogany deck with amenities and costly finishes—is luring more home greatest,” said Tim Costello, CEO of Builder Home-
an outdoor entertainment system. buyers. An analysis by Home Innovation Research site, a consortium whose New Home Source web-
“The small footprint allowed us to spend extra Labs, a subsidiary of the National Association of site—an online clearing house for new-construction
on details that would otherwise have been spent Home Builders, found that the number of new-con- Please turn to page M4

This Home Is
A Work of Art
Jonathan Prince turned a sprawling former dairy
barn into a luxurious estate and workspace that
showcases his enormous sculptures
TONY LUONG FOR THE WALL STREET JOURNAL (2)

SOUTHFIELD,
MASS.

$1.2
MILLION
Purchased in
2005

Sculptor Jonathan Prince, left, on his bluestone sidewalk leading to the former dairy barn, above, that he
bought and renovated over two years.

BY NANCY KEATES walls, barns and summer camps. bluestone jutting off to the side at different The intended effect is “numinous,“ or
But get closer, and it is clear something is lengths, leaving dark lines that look like mystical, says Mr. Prince, a 67-year-old
FROM ONE ANGLE, Jonathan Prince’s white, unusual: The neatly trimmed yard, irrigated shadows in the grass. And the pristine rect- sculptor, whose latest work, a series called
circa-1900 farmhouse, reached through an to stay emerald green, is mowed in different angular swimming pool is a preternatural “Shatter,” currently displayed at Christie’s
arch of maple trees, blends perfectly into ru- directions, creating a sense of movement. A deep blue, flickering with light reflecting off Sculpture Garden in New York, consists of
ral Berkshire County’s winding roads, stone long path to the kitchen door has pieces of what appear to be pebbles. Please turn to page M7
 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.

M2 | Friday, December 13, 2019 THE WALL STREET JOURNAL.

MANSION

PHOENIX // $9.99 MILLION

The design of this house, built in 1952,

is seen as a precursor to Wright’s work on the
Guggenheim Museum in New York.
4 bedrooms, 3.5 bathrooms, 2,553 square feet

BOB HASSETT; ROBERT PHILLIPS/EVERETT COLLECTION (WRIGHT)

COMPARISON SHOPPING

The Wright Stuff

Homes designed by Frank Lloyd Wright still create a stir when they come on the market

BERNARDSVILLE, N.J. // $1.495 MILLION.

BY ADRIENNE GAFFNEY Revival in Los Angeles seen in the film

W
“Blade Runner,” was sold by supermar-
hen Kim Bixler was 8, ket billionaire Ron Burkle for $18 mil-
her family moved into lion.
a Rochester, N.Y., Among the Wright homes currently
home built in 1908 by on the market is one in Phoenix. Wright
the architect Frank built the home in 1952, adding a guest-
Lloyd Wright. They acquired the prop- house in 1954. It was designed for
erty in an unusual deal: The couple Wright’s son and daughter-in-law, David
swapped their home for the Wright and Gladys Wright, and has a similar
house after seeing it on a tour. silhouette to his Guggenheim Museum
The agreement, negotiated over a in New York City.
dinner, ultimately put a value of about John Waters, the preservations pro-
$110,000 on the home, which Ms. Bixler grams manager at the Frank Lloyd
describes as Prairie-style, with an open Wright Building Conservancy, said he
floor plan, low-pitched roof and promi- has seen much interest lately in
nent eaves. Wright’s Usonian homes: small, typically
“It was constant repairs every single single-story houses he built beginning in
day, and we both have full-time jobs,” the 1930s to cater to middle-class fami-
Ms. Bixler recalled the owners explain- lies. (Wright coined the word for his vi-
ing some 42 years ago about why they sion of the American landscape.)
wanted to move out after two-plus Mr. Waters attributed the renewed
years. The 1940 Christie House, set on more than 7 acres, was one of four homes built in New Jersey. interest to the current focus on all
For Ms. Bixler, living in the four-bed- 3 bedrooms, 3.5 bathrooms, 2,700 square feet things Midcentury Modern. But he
room, 5,540-square-foot home inspired added that it is impossible to generalize
a love of design and instilled in her a about how well Wright homes sell.
lasting reverence for Wright’s work. BUNKER HILL VILLAGE, TEXAS // $2.85 MILLION “Each has its own story,” he said. “The
“The experience was fascinating,” experts from the conservancy’s real-es-
said Ms. Bixler, who wrote of her years tate committee emphasize that any
in the home in “Growing Up in a Frank home that is not specifically what the
Lloyd Wright House,” published in 2012. market is looking for at a given time
“My parents didn’t have a lot of money, may take longer to sell.”
so we basically held the house together He offered as examples a Wright
with love and Band-Aids.” home in Manchester, N.H., that sold
She said her mother, Karen Brown, above its asking price in two months.
was an admirer of the architect, and Another in Illinois has been on the mar-
pushed her to give house tours. “She ket since 2017, he added, even while one
had all the little note cards that she nearby sold in less than three months.
would give to me,” she said, “standing Ms. Bixler’s family kept their home
in front of these architecture professors for nearly 20 years. They moved into
and architects and community groups, the house in 1977, when her father, Burt
giving this tour as this 8-year-old.” Brown, began working at Xerox, and
Wright designed more than 1,100 owned it until 1994, when they sold it
buildings from the late 1800s until his for $425,000. The home most recently
death in 1959; 532 of them were built. sold for $830,000 in 2009, according to
Some 60 years after his final home was Realtor.com.
completed, it is still news when a She recalled just one drawback to life
CLOCKWISE FROM TOP: WEICHERT REALTORS; TK IMAGES HOUSTON, TX; SPACECRAFTING PHOTOGRAPHY; PAMELA TILTON LINN/COMPASS

Wright home comes on the market. in a Wright house: “Unfortunately, we

A record for the sale of a Wright-de- did have people who peeked in the win-
signed home was reached in October, The William Thaxton House, the only Wright home in Houston, was completed in 1955. dows, but my mom was pretty relaxed
when his Ennis House, a 1924 Mayan Expanded from the original to 6 bedrooms, 6.5 bathrooms, 8,072 square feet about it.”

MINNEAPOLIS // $2.75 MILLION CHICAGO // $2.2 MILLION

The Henry Neils House, built in 1951, was the first home by Wright to feature marble walls. The 1897 Heller House is geometric in style. The architect added an elevator in 1909.
3 bedrooms, 3 bathrooms, 2,511 square feet 7 bedrooms, 3 bathrooms, 2 half-bathrooms, 6,100 square feet
 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.

THE WALL STREET JOURNAL. NY Friday, December 13, 2019 | M3

PRIVATE PROPERTIES

Armani Buys Unit Next Door ON WSJ.COM

Vote for the

House of the Year
House of the Week winners
face off in a final reader poll

O
ur annual poll names one home the WSJ House of
the Year from among the winners of our weekly
polls. Pick your favorite from a head-to-head
match-up, and keep voting as new pairs of houses auto-
RICH CAPLAN/CORE; CLAUDIO ONORATI/ANSA/ASSOCIATED PRESS (ARMANI) ; BRIAN ACH/ASSOCIATED PRESS (LEGERE)

matically appear. The poll is open until Jan 3.

million. Fourteen
months later he took
the property off the
market and it was
John Legere, the departing chief It has been widely reported that the not publicly listed at the time of the
executive of T-Mobile US, has sold his apartment was at one time the home sale.
Manhattan penthouse to his of publishing giant William Mr. Armani is already a resident of

HALL AND HALL

neighbor, fashion titan Gior- SOLD Randolph Hearst and his mis- the building. His similarly sized

$17.5
gio Armani, for roughly $17.5 tress Marion Davies, though apartment shares a floor with the
million, according to people that connection could not be one owned by Mr. Legere. This pur-
familiar with the deal. chase will allow him to take over the
Located at 91 Central Park MILLION independently verified. Mr.
Legere’s architect Lee Mindel entire floor. Timber! A Montana Wilderness Home
West, the more than 3,000- 3,000 sq. feet, previously said he found Ms. A spokesman for Mr. Armani de- Condon, MT
square-foot, four-bedroom four bedrooms, Davies’s initials carved into a clined to comment. Mr. Legere did
apartment was designed with stained glass fireplace in the apartment as not respond. The timber-frame house features a 28-foot-high great room
a distinctive church-like look. windows, well as a portrait of a woman Mr. Legere, who has been CEO with exposed beams. There are four bedrooms and three-
There is intricate woodwork, Elizabethan oak that appeared to be Ms. Da- since 2012, will be stepping down and-a-half bathrooms over 4,347 square feet.
stained glass windows, a fireplace vies in the stained glass. from his role at the telecom company
carved Elizabethan oak fire- Mr. Legere bought the this spring, it was announced last  Pick your favorite at WSJ.com/RealEstate
place and a handcrafted wooden bar. It apartment in 2015 for $18 million, he month. He will be succeeded by chief
also has 1,700 square feet of terrace told The Wall Street Journal when he operating officer Mike Sievert.
space overlooking Central Park. listed it in February 2018 for $22 —Katherine Clarke

Julian Schnabel
Family’s Fanciful
NYC Townhouse
A Greenwich Village and a library that
townhouse once home to could be converted
artist Julian Schnabel and into additional bed-
his first wife, art collector rooms, he said.
Jacqueline Schnabel, The home
is coming on the has expan-
market for $18.5 sive bright
million. entertain-
The property ing spaces
has been in the including 3100 SAVANNAH PLACE
Schnabel family three formal din- also has a large rear garden. Warhol, but many of the
FROM TOP: YALE WAGNER; KURT KRIEGER/CORBIS/GETTY IMAGES; HAAS COLBY

since the 1990s, ing rooms, one of Listing images show off pieces were removed from 6 BEDROOMS 8 FULL AND 2 HALF BATHS $5,500,000
and is still owned which opens out the family’s colorful style. the property so that it
by Ms. Schnabel, re- onto a terrace with In one of the din- could be tempo- An expansive auto court shaded by a canopy of majestic oaks sets
the tone for this remarkable Country Estate. Designed to entertain
cords show. views to the south and ing rooms, there is FOR SALE rarily rented, Mr.
and hold host to large family gatherings, the home’s elegant entry

$18.5
The five-story Italianate west. There are four ter- green wallpaper, Bolla said.
foyer features a grand custom staircase leading to the second-floor
townhouse is about 6,600 races, including two on an baby pink patent Jacqueline and formal living areas.
square feet, with an addi- upper level not visible from leather chairs and Julian Schnabel
tional roughly 1,000 square the street. The property a Chinese-style MILLION have three chil-
feet of usable lantern. 6,600 sq. ft., dren together:
space on the Mr. Schnabel de- art studio Lola Montes
basement level, signed various as- Schnabel, a
according to the pects of the house, includ- painter and filmmaker, ac-
listing agent, Mi- ing an elaborate fireplace tress Stella Schnabel and
chael Bolla of and a dining room table. gallerist Vito Schnabel.
Sotheby’s Inter- The property was previ- —Katherine Clarke
national Realty. ously dotted with the
There are four Schnabels’ large art collec- Lachlan Murdoch pays
bedrooms plus tion, which included pieces $150 million in L.A. M10
an art studio by Cy Twombly and Andy
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REFERENCE TO THIS BROCHURE AND TO THE DOCUMENTS REQUIRED BY SECTION 718.503, FLORIDA STATUTES, TO BE FURNISHED BY A DEVELOPER TO A BUYER OR LESSEE.
These materials are not intended to be an offer to sell, or solicitation to buy a unit in the condominium. Such an offering shall only be made pursuant to the prospectus (offering circular)
EQUAL HOUSING
OPPORTUNITY

for the condominium and no statements should be relied upon unless made in the prospectus or in the applicable purchase agreement. In no event shall any solicitation, offer or sale of a unit in the
condominium be made in, or to residents of, any state or country in which such activity would be unlawful. FOR NY RESIDENTS ONLY, SEE CPS-12 OFFERING PLAN FOR ADDITIONAL TERMS.
FILE NO. CP18-0139. Image Copyright DBOX. Created by CATAPULT13
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M4 | Friday, December 13, 2019 THE WALL STREET JOURNAL.

MANSION
Purchased in 2013 for
2,400 SQUARE FEET
$495,000
Remodeled in 2013 for

$280,000

ALEXIA FODERE FOR THE WALL STREET JOURNAL (6)

Jewel-Box Hand-
blocked
wallpaper;
Homes Hide vintage 1960s
flip-top desk.

Gems Inside
Continued from page M1
homes—tracks home buyers’ pref-
erences.
At the opposite end of the age Hand-blown
spectrum, many younger home glass fixture by
buyers don’t want to deal with Lindsey Adelman
the cost and headaches of main- $20,790
taining a large house. 
“The rule of thumb is that it
takes 10 to 15 people to maintain a
house in the Hamptons—our goal Jennifer Bunsa, an interior
was to halve that,” said Mr. Frick, designer, lives with her husband,
who shares his East Hampton Bryan Whitefield, and 5-year-old
house with his partner, Gabriel Fer- son in a 1948 house in Miami that
nandez, 36, director of global brand was once her childhood home. She
design at American Express. bought it from her father and did
But the home’s modest size was an extensive renovation.
a challenge when it came to find-
ing a contractor willing to take on Inside the house, custom mill- year-old son, Jack, in the 1948
the gut-remodel. “Most contrac- work and natural stone were used Midcentury Modern house in Mi-
tors in the Hamptons are focused to create “little areas of delight,” ami that was once her childhood
on building multistory, ground-up said Penelope Kim, Mr. Frick’s de- home.
houses that are 5,000-plus square signer. The home’s two small bath- Ms. Bunsa, 40, bought the 2,400-
feet,” Mr. Frick said. He kept the rooms—once a riot of pink and square-foot house from her father
basic footprint of the house—orig- green tile—are now finished in in 2013 for $495,000, and began
inally an inexpensive kit home— travertine, limestone and arabes- renovating it in stages. She has
but added a large wraparound cato marble tile. A closet was con- spent over $280,000 to date.
deck, which provides an addi- Vintage verted into a bar with a dramatic Apart from its emotional pull,
tional 800 square feet of living Moroccan rug; slab of wavy green-veined marble. the house fit the family’s lifestyle:
space and a place for guests to hurricane-impact “The doors open and it becomes a Trading up to a bigger house would
gather. windows; pendant showpiece,” Mr. Frick said. have meant moving away from Mi-
A separate deck off the master glass fixtures on Jennifer Bunsa, an interior de- ami’s urban center to the suburbs.
bedroom suite has an oversize brass chains signer, lives with her husband, “I think it’s the perfect layout.
mahogany-wall spa shower, Bryan Whitefield, 44, a project It’s just the right amount of
screened by a bamboo hedge. manager for construction, and 5- space, so we can be together as a

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THE WALL STREET JOURNAL. NY Friday, December 13, 2019 | M5

MANSION

TIPS ON DECORATING YOUR JEWEL BOX

High windows
and travertine
1. A sprawling sectional sofa 4. Use custom millwork to
floors
can make a small living room create built-in storage areas
throughout
feel cramped. Pick furnishings for pantries and washer-dryers,
that fit the space without for a less cluttered look.
dominating it. “A lot of big-box
retailers sell furniture that’s 5. Keep it light. Add layers of
just too big,” Ms. Bunsa said. ambient lighting, such as tiny,
dimmer-controlled downlights
2. To enhance a sense of spa- in ceilings, “so the home can
ciousness, give low ceilings a maintain a light feeling in all
glossy paint finish. “It increases four seasons,” Ms. Kim said.
reflectivity and draws the eye “And keep the color palette
up,” says designer Penelope Kim. simple and neutral, so that
Ms. Bunsa recommends hanging spaces flow into one another.”
Sharon and Michael Daggett built a home in the country-club window treatments at, or close
community of Cimarron Hills in Georgetown, Texas. to, the ceiling—even if the win- 6. But don’t be afraid of color.
dows don’t reach. “It makes the Splashes of color, used judi-
ceiling seem higher,” she said. ciously, add depth. “Use a
bright color or patterned wall-
2,224 SQUARE FEET 3. Splurge on natural stone paper in the background to
such as quartzite or marble for grab attention and extend view
counters and backsplashes, to through the space,” Ms. Bunsa
add impact to smaller kitchens said.
and bathrooms. —Amy Gamerman

ing from $460,000 to $825,000. nishings.

There are 30 sites still available. Most of the interior living
“Now that the kids are gone, space is concentrated in its cen-
AMY MIKLER FOR THE WALL STREET JOUNRAL (3)

they are looking to right-size,” tral great room, with just two
Brian Shields, a partner with Sit- bedrooms. A separate 340-square-
terle Homes and president of its foot casita with a third bedroom
Austin division, said about his is set across an interior courtyard
Purchased for over customers. “They still want high from the main house.
$800,000 design and nicer appointments
and finishes.”
“It’s perfect for us. The casita is
totally a guesthouse,” said Ms.
Sharon Daggett, who owns Daggett, who also uses it as a
Furnished for
homes in Phoenix and Horseshoe home office. “That really did ap-
$100,000 Bay, Texas, had been house-hunt-
ing in Georgetown, where her
peal to me, because we have com-
pany that comes all the time.”
family has deep roots. But most of The great room opens onto two
the properties were huge, estate- outdoor entertainment areas that
family but also split off and do hurricane-impact windows. “So “It’s such a central element—it’s size homes 3,000 square feet and add an additional 800 square feet
our own thing,” Ms. Bunsa said. now it functions as my office and not a precious item in a room you more, said Ms. Daggett, who is in of space: an open courtyard with a
The house hadn’t been updated a playroom,” Ms. Bunsa said. One never go in,” she said. her 60s. wood-burning fireplace, and a spa-
in decades. Ms. Bunsa tore out the of the room’s original, 1940s jal- New-construction homes that She found out about the garden cious covered patio with a pool and
pocket doors that closed off the ousie windows has been repur- fit the jewel-box profile can be homes by chance when she was large hot tub.
kitchen, replacing aging melamine posed as part of a dividing wall hard to find, although more build- seated next to Mr. Shields’ wife on The patio, which overlooks the
with custom walnut cabinetry, and for the adjacent guest room. ers are beginning to offer them. a flight to Austin. pool and golf course, has a fire
putting in a ceiling-high slab of The home’s limited square foot- The Fairways section of Cimar- “I said, ‘I would love to see pit, a seating area and an outdoor
Calacatta gold marble for a back- age meant Ms. Bunsa could ron Hills, a private country-club what you are doing with smaller kitchen. Thanks to the mild cli-
splash. splurge on materials such as community in Georgetown, Texas, homes,’ ” Ms. Daggett recalled. mate, the Daggetts can use the
She relocated the hallway that handmade Moroccan tile for the outside Austin, features new luxury She and her husband, Michael outdoor spaces for eight or nine
connected the master bedroom to foyer and hand-blocked wallpaper homes that range from 2,034 to Daggett, a retired certified public months out of the year.
the living room from the center of for the kitchen and Florida room. 2,564 square feet. accountant, built a 2,224-square- The couple, who like to throw
the rooms to one side, creating The handblown glass chandelier Sitterle Homes, a Texas-based foot home in 2018 that overlooked parties, also converted a living
space for a media wall. in the dining room—Knotty Bub- home builder, has sold about 40 of the fairway’s 17th green, at a cost room closet into a cocktail bar.
An open-air sunroom, called a bles by Lindsey Adelman—has a these garden homes in Cimarron in of more than $800,000. They “We didn’t cut corners on any-
Florida room, was enclosed with list price of $20,790. the past five years, for prices rang- spent about $100,000 on new fur- thing,” Ms. Daggett said.

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THE WEST COAST IS CALLING

ORAL REPRESENTATIONS CANNOT BE RELIED UPON AS CORRECTLY STATING THE REPRESENTATIONS OF THE DEVELOPER.
FOR CORRECT REPRESENTATIONS, REFERENCE SHOULD BE MADE TO THE DOCUMENTS REQUIRED BY SECTION 718.503,
RE S ERVE A TO U R | 833- 777 -16 6 0 FLORIDA STATUTES, TO BE FURNISHED BY A DEVELOPER TO A BUYER OR LESSEE.
THIS OFFERING IS MADE ONLY BY THE OFFERING DOCUMENTS FOR THE CONDOMINIUM AND NO STATEMENT SHOULD BE RELIED UPON IF NOT MADE IN THE OFFERING DOCUMENTS. THIS IS NOT AN OFFER TO

1221OCEAN.COM | SANTA MONICA, CA SELL, OR SOLICITATION OF OFFERS TO BUY, THE CONDOMINIUM UNITS IN STATES WHERE SUCH OFFER OR SOLICITATION CANNOT BE MADE. PRICES, PLANS AND SPECIFICATIONS ARE SUBJECT TO CHANGE
WITHOUT NOTICE. ALL PRICING IS SUBJECT TO CHANGE. EL-AD GROUP, LTD. (“EL AD”) IS NOT THE PROJECT DEVELOPER. THIS CONDOMINIUM IS BEING DEVELOPED BY ALINA BOCA RATON LLC, A FLORIDA LIMITED
LIABILITY COMPANY (“DEVELOPER”). ANY AND ALL STATEMENTS, DISCLOSURES AND/OR REPRESENTATIONS SHALL BE DEEMED MADE BY DEVELOPER AND NOT BY EL AD AND YOU AGREE TO LOOK SOLELY TO
DEVELOPER (AND NOT TO EL AD AND/OR ANY OF ITS AFFILIATES) WITH RESPECT TO ANY AND ALL MATTERS RELATING TO THE MARKETING AND/OR DEVELOPMENT OF THE CONDOMINIUM AND WITH RESPECT TO
THE SALES OF UNITS IN THE CONDOMINIUM. THE INFORMATION PROVIDED, INCLUDING PRICING, IS SOLELY FOR INFORMATIONAL PURPOSES, AND IS SUBJECT TO CHANGE WITHOUT NOTICE. IMAGE IS ARTIST’S
CONCEPTUAL RENDERING. FOR NEW YORK PURCHASERS ONLY, THE CPS-12 APPLICATION FOR THE CONDOMINIUM HAS BEEN FILED WITH THE STATE OF NEW YORK, DEPARTMENT OF LAW (FILE NO. CP18-0136).
WARNING: THE CALIFORNIA DEPARTMENT OF REAL ESTATE HAS NOT INSPECTED, EXAMINED, OR QUALIFIED THIS OFFERING. THIS ADVERTISEMENT IS A SOLICITATION FOR THE SALE OF UNITS IN ALINA
BOCA RATON: N.J. REG. NO. 19-04-0004. THIS COMMUNITY HAS BEEN REGISTERED WITH THE MASSACHUSETTS BOARD OF REGISTRATION OF REAL ESTATE BROKERS AND SALESMEN F-1266-01-01
IRVINE MANAGEMENT COMPANY, A LICENSED REAL ESTATE BROKER DRE LIC. #02041810
 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.

M6 | Friday, December 13, 2019 THE WALL STREET JOURNAL.

MANSION

Firefighters battling a house fire during the Kincade Fire in Sonoma County, Calif., in October.

COUNTING HOUSE | BETH DECARBO

Getting Insurance in a Hot Zone

Some insurers aren’t renewing homeowners’ policies in high-risk areas. Here’s what to know if it happens to you.

As if living After a scramble, his agent was

through a string of able to get him a policy from a
deadly wildfires FINDING COVERAGE IN HIGH-RISK AREAS non-admitted insurer. But in June,
weren’t bad Mr. Guest was notified that the
enough, some Cali- • If your insurer didn’t give cost of replacing personal company wouldn’t renew his pol-
fornia home- ample notice, which varies items (replacement cost value) icy, citing limited access to his
owners were fur- widely by state, before declin- instead of what those items property—a single road in and
ther burned when their insurers ing to renew your policy, con- are worth after depreciation out—that would hamper rescue or
wouldn’t renew their fire-insur- tact your state’s insurance (actual cash value). escape in the event of a wildfire.
ance policies. In response, Califor- commissioner. The United Poli- • Understand that a policy After another scramble for cov-
nia last week announced a one- cyholders website has a state- might have a fixed-dollar de- erage—with only days to spare be-
year moratorium forbidding by-state list of insurance com- ductible for some issues, such fore his policy expired—he was able
insurers from dropping customers missioners and resources. as theft, and a percentage de- to get fire coverage from American
who live in or adjacent to ZIP • Shop for a policy that will ductible for others, such as Modern, an Ohio-based company
Codes affected by recent wildfires. adequately cover a total loss of damage caused by a hurricane. that is admitted, or licensed to
While the measure offers some your home due to fire, including In Florida, for example, the per- write policies, in California. He was
temporary relief, it might not help building code upgrades. Then, if centage deductible typically able to get a basic policy for $3,680
homeowners seeking a new policy you can afford it, add supple- ranges from 2% to 5% of the to- a year, up from $1,460 a year be-
for fire coverage. There are also mental coverage for things like tal insured value. (So a home- fore receiving his first nonrenewal
fears that insurers will ask the flood and earthquake protection. owner with a 5% deductible on in 2018. ($1,000 of it has since been
state’s Department of Insurance has its drawbacks. • Since many states’ FAIR a $1 million policy would have refunded.)
for across-the-board rate in- First, if you receive a letter say- plans typically offer limited cov- to pay $50,000 out of pocket The third option for home-
creases—or stop doing business in ing that your policy won’t be re- erage, homeowners with those before the insurer would pay.) owners who have been dropped is
the state altogether to avoid fur- newed, talk to your insurance policies should also purchase • To check the financial stabil- a state’s FAIR plan, which stands
ther losses. agent, or call the company di- “difference in conditions” poli- ity of a non-admitted insurer, ask for Fair Access to Insurance Re-
“The problem with that is that rectly, and state your case for re- cies to cover things like theft, your agent to check the in- quirements and is considered the
carriers are not nonprofits. If you versing the decision. (California water damage and liability. surer’s rating on the A.M. Best insurer of last resort.
strip away their ability to under- has asked insurers to voluntarily • Policies should cover the or Demotech websites. California’s FAIR plan is limited
write, they can’t afford to do busi- stop dropping customers statewide to fire damage, leaving home-
ness,” says Karl Susman, a Los because of fire risk.) The larger in- owners uncovered for things like
Angeles-based insurance broker. surers typically rely on risk-model- theft, water damage and liability.
Over the past four years, insur- ing algorithms to determine areas However, in November, state Insur-
ers have declined to renew the prone to disaster, says Amy Bach, measures throughout the commu- cause of risks in your area, many ance Commissioner Ricardo Lara
policies of 350,000 California executive director of United Poli- nity. One insurer offers discounts homeowners turn to a “non-ad- announced an expansion of FAIR
homeowners who live in areas at cyholders, a national consumer-ad- to homeowners in cities with a mitted” insurance company, so plan coverage. Starting April 1, cov-
high risk for wildfires, according vocacy group. The models typically “Firewise” certificate from the called because they aren’t li- erage limits will increase to $3 mil-
to the California Department of use satellite data, so the margins National Fire Prevention Associa- censed by the state’s department lion, up from $1.5 million. And
Insurance. around supposed high-risk zones tion. In hurricane-prone areas, se- of insurance. As a result, they are starting June 1, the policies will of-
The problem isn’t limited to are imperfect. As a result, some curing the roof and installing less regulated than “admitted” fer comprehensive homeowners
California. Homeowners on the homeowners are dropped even if wind-resistant doors and window companies, and homeowners policies that include coverage for
East Coast and the Caribbean are their property is relatively safe. shutters can minimize wind and aren’t protected if the company theft, water damage, falling objects
losing coverage as well. In Flor- Even if a home is located in a water damage. Still, these mea- becomes insolvent. and liability.
ida, tens of thousands of home- verified danger zone, adding di- sures might not be enough for in- In Berkeley, Calif., homeowner Last week, in early December,
owners have been dropped by saster-resistant features could surers to reverse a nonrenewal Nigel Guest received nonrenewal however, FAIR plan President An-
their insurers in recent years be- make your home more insurable, decision, Ms. Bach notes. notices twice—each from a differ- neliese Jivan released a letter call-
cause of the high risk of hurricane according to the Insurance Infor- The second option is to shop for ent insurance company. Mr. Guest, ing the expanded coverage “mis-
and water-related damage. Even mation Institute. For example, re- comprehensive coverage from a 71, a retired environmental con- guided” and asked the Department
homeowners unaffected by fire or moving plantings and trees near different insurer. Just be prepared sultant, owns a roughly 2,500- of Insurance to withdraw the order.
hurricanes can receive notice that the house and replacing siding to pay higher premiums. An inde- square-foot, hillside home that Among the reasons cited are the
their policies won’t be renewed, with a noncombustible material, pendent insurance agent—one who was recently appraised at $1.85 lack of funds and resources to im-
with companies citing repeated such as stucco or fiber cement, offers policies from a number of million. Last year, he got a letter plement the order. A spokesperson
claims and other risk factors. can mitigate the damage of wild- insurers—will know which compa- from his longtime insurer, saying for the Department of Insurance
After learning they have been fire. Many neighborhoods are nies offer coverage in your area. it was no longer providing cover- says the agency will meet with
dropped, homeowners basically forming Fire Safe Councils that When standard coverage from a age for properties in his neighbor- FAIR officials to work on imple-
have three options, but each one undertake wildfire preparedness major insurer isn’t available be- hood because of the wildfire risk. menting the commissioner’s order.

HIGH RISKS STALLING PROPERTY VALUES

FROM TOP: PAUL KITAGAKI JR./ZUMA PRESS; ORANGE COUNTY REGISTER/ZUMA PRESS

The difficulty of buying insurance in high- growth in sale prices between 2017 and
risk areas could hit the housing market. 2018, but saw sale prices fall 1.9% between
In Sacramento, Redfin agent Debbie Ol- January 2019 and the end of August.
son says she represented a couple in Au- While price declines can’t be blamed en-
burn, Calif., earlier this year who found a tirely on the wildfires, four of the 10 high-
home they loved in their preferred neigh- risk counties saw sale prices fall since last
borhood. But a quote just for fire insurance year, and price increases in the other six
came in at $9,000 a year. The sellers of- counties slowed significantly, the Realtor
fered to pay half of the costs for two years analysis found. (News Corp, owner of The
as part of the deal, but ultimately the cou- Wall Street Journal, also operates Real-
ple purchased property in another neigh- tor.com under license from the National
borhood with lower insurance premiums. Association of Realtors.)
An analysis of 10 high-risk counties in “Nonrenewals are on the rise, threat-
California by real-estate website Real- ening home values across the state,” said
tor.com found that sale prices have flat- Ricardo Lara, commissioner of the Cali-
tened or fallen since 2017. Sierra County, fornia Department of Insurance at a
for example, experienced almost 30% news conference last month.

During the Hill Fire in Jurupa Valley, Calif., firefighters worked to save a home.
 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.

THE WALL STREET JOURNAL. Friday, December 13, 2019 | M7

MANSION
TWO YEARS +
This gallery is located between
the living space and work $1.5
space at the home. MILLION
on renovations

G2V

TONY LUONG FOR THE WALL STREET JOURNAL (7); JONATHAN PRINCE (“SHATTER”)
Jello

Range

Mr. Prince designs his sculpture on site and has turned several large, former industrial spaces into galleries.

Work of Art
Continued from page M1
Mr. Prince calls this a
smooth steel water pipes, opened up to reveal reflec-
‘meditation on rumination.’
tive, highly polished stainless steel insides resembling
broken glass. Three of Mr. Prince’s sculptures are cur-
rently for sale at Christie’s for $675,000 each. A work
he sold for $350,000 called “Vestigial Block” is on per-
manent display at the Eli and Edythe Broad Art Mu-
seum at Michigan State University in East Lansing, a
donation of Julie and Edward J. Minskoff. ‘SHATTER’
Both Mr. Prince’s home and the sculptures play on A series of sculptures currently
the same themes: chaos beneath a seemingly perfect displayed at the Christie’s
exterior and fluidity emerging from static materials. Sculpture Garden in New York
Mr. Prince bought the property in Southfield,
Mass., for $1.2 million in 2005. It was an old dairy
barn on 3 acres that had been used as a textile fac-
tory and a space for ballet performances. Attached is
a former industrial building that resembles an airline WHAT The former
dairy barn, left,
hangar with 27-foot-high ceilings, pushing the total
square footage to 23,000.
IT COST has been
converted into
The previous resident, a Manhattan nightclub owner- high-ceilinged
turned jewelry artist named Keith Mitchell, had spent Creating living spaces.
seven years transforming the barn into a six-bedroom, electrical Mr. Prince
lofted living space, keeping the original wood beams but service that turned a library
putting in a modern kitchen. Mr. Mitchell gave up when could handle into his office,
it came to doing anything with the attached industrial industrial loads below left. Mr.
area. Mr. Prince was able to renovate that part of the and machinery Prince, below
building because “he’s like a bulldog, he attacks, attacks, right, in one of
attacks. You need that kind of mental energy for a place $75,000 his work
like that,” says Mr. Mitchell. spaces, the
Mr. Prince spent two years and about $1.5 million Concrete floor of which
on his renovations. He added the pool, put in glass was reinforced
walls where $100,000 with concrete
barn doors to withstand
once resided, Pool industrial loads
and turned a and a crane
library into an $120,000 with a capacity
office. The for- of 30,000
mer ballet  Spa pounds.
stage is now a Bathroom
gallery,
crowded with $100,000
his shiny,
metal works Thermally
atop white insulated
pedestals. Brightly colored polished steel cubes that moving/folding
resemble their name, “Jello,” sit near a giant brown glass wall
semicircle that looks like a doughnut with a bite
taken out. A tall, skinny, white, cattail-shaped work $60,000
hovers overhead.
Downstairs from the gallery, a door leads to the 16 mature trees
domed area that looks like a Quonset hut. Mr. Prince and 100-ft.
took out a hay loft, knocked down cow stalls and hornbeam
added about $100,000 of concrete to create a work- hedge
space that can handle industrial loads and machinery,
including a crane with a capacity of 30,000 pounds. $75,000
This is where he makes all his sculpture by hand, as-
sisted by three other artists.
“This space isn’t a shop. It’s a place of experimen- before moving on to produce films,
tation,” says one of those artists, Marc Palumbo, 45. including 1992’s “The Plague” with
They are working on something that looks like a William Hurt and Robert Duval.
massive wood log (but is actually made of steel) That led to digital media and then
standing on one end, with the middle chewed out. computer animation, culminating
Mr. Prince describes it as a “meditation on rumina- in his creation of a three-dimen-
tion,” meaning he wants people to “chew on it.” sional holograph visualization of
the globe, and an Emmy his com-
pany won for set design. In 2001,
he decided he wanted to be a full-
Both his home and the sculptures play Torus 340 time sculptor.
on the same themes: chaos beneath a He is also something of a part-
time guru, using his house for
seemingly perfect exterior and fluidity weekend consciousness-group ses-
emerging from static materials. sions made up of about a dozen
men. He urges his guests to look
beyond what appears to be the
perfection of the surface to see
On the lower level of the living space is a wood- and accept the imperfections
working shop, where a buffalo hide is stretched on a within.
metal table, pinned with grommets. Mr. Prince is cur- His goal is to communicate the
rently studying the material’s shapes. Two floors importance of self-truth through
above the main living area, in a tower that used to be his intensely physical, metallic in-
a grain silo, is what he calls the meditation room. dustrial art. While he cops to be-
Mr. Prince, who was born and raised in New York ing “into love and gratitude,” he
City, started his career as a dentist. He specialized in The Berkshire Mountains frame Mr. Prince’s industrial workspace where he and his assistants claims he’s not “new agey.” “I have
maxillofacial surgery in Beverly Hills and Manhattan build the pieces by hand. a scientific approach,” he says.
 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.

M8 | Friday, December 13, 2019 THE WALL STREET JOURNAL.

MANSION
IN THE TRENCHES | AMY GAMERMAN

Word of Advice:
Take the Stairs
Agents share their misadventures with small elevators

Q Have you ever elevator stopped. We were halfway be-

tween the lobby and the second floor.
gotten stuck in One of the shareholders tried calling the
an elevator super, but it was his day off. We hit the
alarm button, but no one was around.
during a showing? A few moments later, one of the buy-
ers said, “Do you smell that?” I looked
up and smoke was pouring into the top
TANIA ISACOFF FRIEDLAND of the elevator. I had my cellphone so I
Associate real-estate broker, dialed 911. I could envision the headlines
Warburg Realty, New York City all over the New York Post: “Broker Dies
During Open House in Elevator Fire.”
I was selling a small two-bedroom At this point, everyone was panicking.
apartment in a non-doorman prewar co- One of the shareholders knew how to
op on the Upper East Side. It was an pry open the elevator door. He assisted
open house on a hot summer Sunday. each one of us as we jumped down into
The apartment was on the second floor. the lobby. Later, people told me how
I typically take the stairs, but I had a dangerous this was—that people have
group of buyers with me who didn’t feel been killed that way. Within moments
like walking. So we piled into the tiny el- the Fire Department arrived. It turned
evator along with two resident share- out to be a small electrical fire.
holders—a total of six people. The door Believe it or not, the buyers still

ERIC PALMA (2)

closed, we moved a little and then the wanted to see the apartment.

JAMES HARRIS I get in and his two kids jump in with me; JILL BIGGS was malfunctioning. I’m alone in
Director they were maybe 10 and 12. The doors Real-estate agent, the dark with my cellphone, flipping
The Agency, Los Angeles closed, and then the power cut out. Coldwell Banker, Hoboken, N.J. out. I call the developer but he’s in
What happened was, the home Mexico. I must have called five
I was walking a client was still on temporary power I had a showing at a townhouse people, anyone I knew—but they
and his two kids around a and could only run so many condominium—a $3.5 million prop- couldn’t help me. They couldn’t
brilliant $40 million house volts on the system. There erty that was still a job site. I got have gotten into the building any-
in Bel-Air—new construc- were probably too many there a half-hour before to turn on way: It’s a concrete-and-steel build-
tion with a glass eleva- lights on, or a filter pump all the lights. I get in the elevator. ing and the outer door is locked.
tor. The client said he running in the pool. It’s one of the new, modern ones So I called my ex-husband—he’s
was afraid of enclosed The three of us were with louvered doors that close au- a contractor—and asked him to get
spaces, but he wanted stuck in the elevator for an tomatically and lock when you on YouTube. He talked me through
me to get in the elevator hour and a half. After about press the button. Your instinct is to putting the elevator doors back on
and try it out. two minutes, we ran out of touch the doors and pull them track. I’m doing this in the dark with
I’m claustrophobic. In conversation. The kids freaked closed—but if you do that, they fall the light on my cellphone. It took
fact, I got stuck in an ele- out and started shouting, off the track and you are stuck. about 25 minutes.
vator nine years ago in “Daddy! Daddy!” I wanted to Who knew? Not me. When I finally got out, the clients
Woodland Hills and swore I scream “Daddy!” too. Finally, the fire There’s always a hand-held were outside waiting, and I had to
would never get in an elevator brigade came and opened the doors. phone in an elevator, but because explain what happened. Now we
again. I know I’m afraid of elevators, I doubt those two kids have gotten in this was a brand-new property it post warning signs.
but he doesn’t. So I say, “Of course!” an elevator since. hadn’t been hooked up. The light —Edited from interviews

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

THE WALL STREET JOURNAL. Friday, December 13, 2019 | M9


 

 
 

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M10 | Friday, December 13, 2019 THE WALL STREET JOURNAL.

PRIVATE PROPERTIES

Lachlan Murdoch’s Big Buy

He famously promoted the 1971
championship fight between Mu-
hammad Ali and Joe Frazier.
The deal is the latest in a recent
string of sales to have topped
Lachlan Murdoch, media execu- $100 million in Los Angeles. Ear-
tive and son of media mogul Ru- lier this year, a Holmby Hills house
pert Murdoch, has paid roughly owned by Formula One heiress Pe-
$150 million for Chartwell, a Bel- tra Ecclestone and formerly owned
Air estate, according to people fa- by television mogul Aaron Spelling

JIM BARTSCH; GREGG DEGUIRE/FILMMAGIC/GETTY IMAGES (MURDOCH)

miliar with the deal. sold for close to $120 million, re-
Lachlan Murdoch is co-chair- cords show. In August, NBCUniver-
man of News sal vice chairman Ron Meyer sold
SOLD Corp, which his Malibu, Calif., home for about

$150
owns Dow $100 million, The Wall Street
Jones & Co., Journal reported.
publisher of The Agents say Los Angeles has
MILLION Wall Street been the best-performing luxury
25,000 sq. ft., Journal. He market in the country this year, in
car gallery for didn’t respond terms of ultra-high price tags.
40 vehicles, to a request for Other segments of the market,
75-foot pool, comment. such as the $10 million to $40 mil-
manicured, When it listed lion price category, have suffered
gardens in 2017 for $350 from an oversupply of spec homes,
million, the cha- which has been a drag on prices.
teau-style home was the most ex- The listing agents include Drew
pensive on the market in the coun- Fenton, Jeff Hyland and Gary Gold
try. While this deal falls short of of Hilton & Hyland; Joyce Rey,
that, it still sets a record for a style mansion, according to the could cost in the tens of millions, The home was owned by the Jade Mills and Alexandra Allen of
home in the Los Angeles area. It is listing. The exterior of the 25,000- making the price tag seem even estate of the late media billionaire Coldwell Banker Global Luxury;
also the second most expensive square-foot house was used as the higher. In addition to the main A. Jerrold Perenchio, according to and Drew Gitlin and Susan Gitlin
residential sale ever recorded in Clampett residence in the televi- house, the property has a Wallace people familiar with the deal. He of Berkshire Hathaway HomeSer-
the country, according to data from sion show “The Beverly Hillbillies.” Neff-designed five-bedroom guest- died in 2017 at age 86. vices California Properties.
appraiser Jonathan Miller. The home’s interiors were ren- house, a 75-foot pool, a pool Mr. Perenchio was the chairman —Katherine Clarke
Sitting on more than 10 acres, ovated in the late 1980s, but house, a tennis court, a car gal- and chief executive of Univision.
Chartwell was designed by archi- agents who’ve seen the estate in lery for 40 vehicles and mani- He led the group that purchased it  See more photos of notable
tect Sumner Spaulding in the recent years said it could still re- cured gardens, according to the in 1992, then sold it to a group of homes at WSJ.com/RealEstate.
1930s as a French Neoclassical- quire a multiyear renovation that listing. investors for $12 billion in 2006. Email: privateproperties@wsj.com

ADVERTISEMENT

Distinctive Properties
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DISTRICT OF COLUMBIA

 
 

  
  

  
  

  
  
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THE WALL STREET JOURNAL. Friday, December 13, 2019 | M11

  

  
 


   
  
    
      
   
    
       
   
   

     

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M12 | Friday, December 13, 2019 THE WALL STREET JOURNAL.

MANSION
HOUSE CALL | NORMA KAMALI Norma Kamali at home in
Manhattan’s West Village,

Style Learned on
in October. Left, dressed in
a matador costume made
by her mother, undated.

Mom’s Catwalk

FROM LEFT: NORMA KAMALI/BRAD TRENT FOR THE WALL STREET JOURNAL; BRAD TRENT FOR THE WALL STREET JOURNAL; ALAMY
The fashion designer behind Farrah Fawcett’s
red bathing suit recalls her influences

T
hroughout my childhood, my mother made all my clothes.
Her designs were so beautiful that she changed my outfits
two or three times a day. She even created a photo album,
“Norma’s Life in Pictures.” It was a catalog documenting the
clothes she had made for me.
My mother, Estelle, was Lebanese and impossibly talented. In addition
to being a seamstress, she was a painter and a hairdresser. If I did the
ironing and cleaning, she’d do my hair in Marcel waves. She also could
eat a dish at a restaurant, then make it at home without a recipe.
She was into health food early. I’d awaken to the sound of her grind-
ing down carrots at 6 a.m. All of this planted in my mind the idea that
women could do anything and everything.
I grew up in a tiny apartment on the third floor of a six-story building
on East 77th Street between York and John Jay Park. Most of the build-
ings on our block were built at the start of the 20th century. Originally,
the apartments went to those with tuberculosis so they could live near
the hospital and get fresh air off the East River.
I was very tomboyish. I loved
playing sports, and my friends
and I were super-active.
My father, Sam, was Basque
and worked in his family’s restau-
rant business. He was thin, tall
and very good-looking, with
slicked-back hair. He landed minor
roles in films shot in New York.
Early on, fashion wasn’t as ex-
citing for me as art, painting, I attended New York’s Fashion West Village of Manhattan. I also NORMA ON FARRAH
dance and drawing in anatomy Institute of Technology and stud- have a country house north of New Farrah Fawcett’s red bathing
classes. My bedroom walls were ied under Ana Ishikawa. Despite York designed by Richard Meier. suit was yours? Yes, she was a
covered with references to Mi- being tight with her compliments, Last year, when my business customer. I had no idea she’d
chelangelo, Rudolf Nureyev and she had a way of letting me know turned 50, I decided I had col- wear it for a shoot in 1976.
other artists I admired. I was talented. I felt encouraged. lected too many things. So I gave Were you
As a child, I felt exotic. In the After graduating in 1965, I took them all away. Now my apartment happy? No, I
summers, my skin would turn re- an office job at Northwest Airlines is understated, simple and Zen. hated the
ally dark. Most of the kids in the in New York. On the weekends, I I even gave “Norma’s Life in suit’s fit.
neighborhood were Irish. They flew round trip to London for $29. Pictures” to my younger brother,
Why did she
were fair-skinned with cute little During one trip, I noticed a store Bill. Memories are more impor-
wear it? The
turned-up noses. Mine was on King’s Road called Dandie Fash- tant than things. If what I remem-
photographer
straight. So I slept on my nose When I was 13, my parents di- ions. Inside I saw a huge slosh of ber creates a feeling, I don’t need
needed bath-
hoping it would turn up. vorced and my mother remarried. brilliant psychedelic shades. I was the objects.
ing-suit shots.
One of my first fashion state- Their breakup wasn’t as traumatic like a moth to a flame. —As told to Marc Myers
Farrah reached into her bag and
ments came in sixth grade, when I as our move to the suburbs. After a When I left the airline in 1968,
out it came.
wore layers of starched petticoats. year, we moved back to 77th Street. I opened a basement boutique in Norma Kamali, 74, is a designer
In the late 1950s, when everyone I By high school, I was more in- New York on East 53rd Street. The whose innovations include the Where is the suit today? The
knew was into the same look, I’d terested in vintage clothing from shop started everything for me. Sleeping Bag coat, parachute Smithsonian has it. I begged
come up with a different way to the late 1930s and early ’40s. I Today, I live in a one-bedroom clothing, sweats as fashion and them to let me make a better
wear what I put on. loved how I felt in the clothes. apartment with a guest room in the sculptural swimwear. one. They said no.

Pictured: American Airlines team members surviving and co-surviving cancer

with SU2C ambassador, Tim McGraw

Join American Airlines and Stand Up To Cancer in our mission to help make everyone diagnosed with cancer
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 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.

JOURNAL REPORT

© 2019 Dow Jones & Company. All Rights Reserved.

CEO COUNCIL THE WALL STREET JOURNAL. Friday, December 13, 2019 | R1

CEOs on the Hot Seat

The Business Roundtable recently said companies should meet the interests of all stakeholders,
rather than just shareholders. CEOs should brace themselves for the consequences.
BY RICK WARTZMAN

I
T’S NO SECRET that big data none of their constituencies could be ignored, the in- stakeholders aren’t empty rhetoric; the necessity to
and artificial intelligence are terests of shareholders should invariably come first. draw on personal traits and capacities that might
starting to roil a bunch of pro- “Much of the discussion has revolved around max- have been underutilized when there were fewer pri-
imizing shareholder wealth,” says legendary Wall orities to juggle; and a push by reformers to revamp
fessions. Yet there’s another
Street lawyer Martin Lipton, who has long main- the incentives that determine executive pay.
job that is also being altered tained that companies have put too much emphasis
with extraordinary speed—only on short-term financial results at the expense of so-
this one is getting reshaped not ciety and, in many instances, to the detriment of Balancing interests
so much by high tech but, their own long-term viability. “We’ve made some re- Tom Wilson, CEO of insurer Allstate Corp., describes
rather, by high ideals: chief ex- ally bad mistakes. We’re now trying to rectify that.” what’s happening as more “evolutionary” than revo-
ecutive officer. In August, the Business Roundtable released a lutionary. “Businesspeople want to do good,” he says.
statement signed by 181 CEOs in which they pledged Please turn to page R2
A loud and swelling chorus is calling for CEOs to “a fundamental commitment” to “deliver value to all”
meet the interests of all their stakeholders—custom- stakeholders. This was a reversal; since 1997, the
ers, employees, shareholders, the communities in Roundtable had endorsed shareholder primacy. Mr. Wartzman is the head of the KH Moon
which they operate and society as a whole. For CEOs, this new stance is certain to have far- Center for a Functioning Society, a part of the
By contrast, many of those leading the nation’s reaching consequences: heightened scrutiny from Drucker Institute at Claremont Graduate Univer-
biggest companies assumed previously that, while various camps to ensure that the vows made to sity. He can be reached at reports@wsj.com.

INSIDE
Keeping
STAND BY YOUR CEO? THE SPEAKER SPEAKS MORE CEO COUNCIL

A study finds that

company boards may Talent At the Journal’s
annual CEO
On the Issues
Excerpts from
have a tendency to In a full-employment Council meeting, interviews with
overlook the failings of economy, retaining
Nancy Pelosi talks William Barr,
your best employees
the chief executives is about much more impeachment and Mick Mulvaney
they chose R3 than money R4 the economy R6 and more R6-9
 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.

R2 | Friday, December 13, 2019 THE WALL STREET JOURNAL. THE WALL STREET JOURNAL. Friday, December 13, 2019 | R3

JOURNAL REPORT | CEO COUNCIL JOURNAL REPORT | CEO COUNCIL

“Yes, we have to make our margins, be asked to do. In the 30 years after World MIXED SIGNALS don’t send mixed messages,” she says.
competitive on price, drive profit, grow,” War II, those at the helm of America’s For CEOs, however, figuring out how to All the while, however, there’s another A New Bottom Line
The Role of the says Ajay Banga, CEO of Mastercard Inc.,
the financial-services provider. “That’s
most prominent corporations routinely
conveyed how crucial it was to look out
please shareholders can be a minefield. The
Council of Institutional Investors has op-
set of shareholders who make no bones
about trying to wring out more profit in the
Most CEOs expect a significant shift in the next few years
toward a broader measure of company success.
CEO Is About the textbook definition of capitalism, and
that’s what you’ll see if you’re only look-
for “the balanced best interests of all,” to
use the catchphrase of Ralph Cordiner,
posed the Business Roundtable statement,
asserting that while “it is critical to respect
short term: activist investors, who have
been known to swoop in and threaten to To what extent do you see the To what extent do you see

N
to Get Harder ing a few feet ahead of you. But when you
raise your eyes a little and recognize that
who was CEO of General Electric Co. in
the late 1950s and early ’60s.
stakeholders…accountability to everyone
means accountability to no one.”
oust the CEO unless costs are cut and more
money is handed to those who own the
CEO role in 2025 becoming
more focused on moral/
future CEOs in 2025 shifting
focus from a single focus of
most companies and nations survive on But by the 1980s, shareholders had “There has to be a north star, and it’s stock. The presence of activists—who have ethical leadership? profit to a triple bottom line
including profit, people and
people making and spending money, you been left to feel as if they were the one long-term shareholder value,” says Ken won more than 800 board seats since 2013,
planet?
realize that you’re part of an intercon- party that wasn’t being accommodated, as Bertsch, executive director of the council. by Lazard Ltd.’s count—is one reason,
Continued from page R1 nected system. Giving people a lift, ex- many companies posted poor financial re- While some decry shareholder primacy, Mr. among several, that CEO turnover has been To a great extent To some extent Same
panding the middle class, helping them turns in the face of recession and ever- Bertsch worries that it will be replaced by climbing and time on the job has been drop-
thrive and grow will also do the same fiercer global competition. The Dow Jones “CEO primacy”—with companies chasing all ping. PricewaterhouseCoopers notes that 5% 5%
for you.” Industrial Average first closed above 1000 sorts of social objectives and not being an- median CEO tenure at big public companies
in 1972—and wouldn’t again until 1982. swerable for their actions. stands at about five years, down from eight
Investors embraced the emerging phi- Mr. Bertsch concedes that too many in- years in 2000.
losophy of a group of scholars—the Uni- vestors “pay excessive attention to what’s “One group wants this, one group wants 33%
A QUESTION OF COMMITMENT versity of Chicago’s Milton Friedman, Mi- happening to share price day to day.” But that—one wants short-term, one wants 38%
56% 62%
All that said, whether most CEOs are pre- chael Jensen of the University of plenty of CEOs, he says, “haven’t been good long-term,” says Steve Odland, president
pared to make a real difference on the
toughest challenges is an open question.
Rochester (and later Harvard) and oth-
ers—that executives were the “agents” of
at articulating their long-term vision” for
turning their strategy into desired financial
and CEO of the Conference Board, a busi-
ness research organization, and the former Board Bias
A number have spoken out on an as-
sortment of important subjects—gun con-
trol, immigration, race relations, affordable
the shareholders, and their single aim
should be to make as much money as pos-
sible within the bounds of the law.
outcomes.
Investment firms with a distant time ho-
rizon, including those that primarily put
CEO of Office Depot Inc. and AutoZone Inc.
“It’s like you’re trying to play a game, and
there are not consistent rules.” Source: Korn Ferry Institute, based on a survey of 163 European CEOs, conducted in August and
And the CEOs
housing, transgender rights and more. But
they can be warier in taking on the issues
“Agency theory” moved quickly and per-
vasively from the halls of academia to the
money into passively managed exchange-
traded funds and index funds, have been in-
September 2019.
They Chose
that are most core to the business. realm of practice. sisting that companies spell out how envi-
On the environment, for instance, In more recent years, however, many ronmental and workforce matters translate
“things are moving in the right direc- have concluded that this focus on profits into longer-term opportunity and risk. But COMPENSATION’S ROLE BY DAVE KETCHEN AND JIM COMBS
tion—but not fast enough,” says Andrew and share price above all has helped to CEOs complain—usually privately—that At the same time, some wonder whether lived in one of the biggest houses in town, but you didn’t

R
Winston, who has ad- bring about some of our while those in the “corporate engagement” compensation—more than confusion—is the live in a different world,” says Leo Strine, who just stepped eforms such as Sarbanes-Oxley have improved corpo-
vised major corpora- most serious environ- department preach a lot about these things, steepest impediment to adopting a true down as chief justice of the Delaware Supreme Court, where rate governance by preventing chief executive offi-
tions on sustainability. mental and social ills. the individuals actually in charge of portfo- stakeholder orientation. many landmark business cases are litigated. cers from stacking boards of directors with their
evertheless, he acknowledges that “most of “Emissions continue to And so now, the pendu- lios are still often fixated on shorter-term fi- Last year, median pay rose to $12.4 mil- As much as a CEO’s pay level may affect things, so does friends and allies. But a more subtle bias still plagues
the money” being generated by U.S. corpo- go up, and companies As CEOs try to lum is swinging again. nancial gains. lion for the heads of S&P 500 companies, up the mix. Two-thirds of CEO compensation last year was tied many boardrooms—one that policy changes and leg-
rations—whose profits have soared over the are still preoccupied “The CEO job today is “That’s where the power lies,” Mr. Lipton 6.6% from 2017, according to a Wall Street to share price through restricted stock and options. By com- islation can’t combat.
past two decades, save for during the with asking, ‘What navigate the radically different from says. Journal analysis. Critics suggest that parison, less than 15% of companies in the S&P 500 incorpo- It’s called choice-supportive bias—the tendency people have to
2007-09 recession—has “gone to sharehold- about the share- crosscurrents, what it was 10 years Betty Yee, who as California’s controller such fat paychecks make it rate ESG-type indicators into their executive-compensation defend a choice even if it is clear that they’ve made a bad decision,
ers,” while the vast majority of workers holder?’ ” A survey this ago,” says Joshua Bol- sits on the boards of the California Public hard for CEOs to relate to packages, a review by my colleague Kelly Tang, the Drucker such as voting for a candidate who stumbles once elected or buying
have not prospered. year of 1,000 CEOs from
they are being ten, president of the Employees’ Retirement System and the the kinds of hardships Institute’s senior director of research, has found. And gener- a car that later proves unreliable. The bias arises not from an intent
From 1979 to 2018, according to the Eco- around the world by Ac- forced to summon Business Roundtable. California State Teachers’ Retirement with which many ally, the sums involved are relatively trivial. to deceive but rather from an unconscious need to protect one’s
nomic Policy Institute, Americans’ hourly centure discovered that many new skills. “They now actually have System, agrees that institutional inves- people are strug- As long as this situation persists, say advocates of a sense of self.
output went up about 70%, while the hourly just a third of them are to respond to a variety tors can send contradictory signals. gling, and this in- stakeholder approach, expecting CEOs to refrain from favor- In a new study published in the Strategic Management Journal, we
wages and benefits of the typical worker es- willing to commit im- of stakeholders,” includ- But she says that initiatives such as hibits how far ing shareholders will remain wishful thinking. investigated whether choice-supportive bias affects corporate direc-
sentially stagnated, increasing less than 12% mediately to cutting ing employees who are the Climate Action 100+, in which they’re willing to Meanwhile, for those who would like to link a bigger slice tors and, if so, what harm it does to companies. While the proverbial
after adjusting for inflation. A study pub- greenhouse gases by apt to express needs and more than 370 investors have go to enhance of CEO compensation to a full range of stakeholder metrics person in the street appears to be easy prey for choice-supportive
lished last month by the Brookings Institu- amounts promulgated in the Paris climate concerns “beyond wages and working banded together to lean on compa- workers’ wages or that include ESG, the absence of a universal structure for bias, we theorized that directors’ education and business experience
tion showed that 44% of all U.S. workers agreement. conditions.” nies on greenhouse gases, indicate benefits. doing so is a significant barrier. might protect them.
ages 18 to 64—53 million people—now hold As to the experience of workers, there For example, Mr. Bolten cites several that they’re on the right track. “We “If you were a Although efforts are under way to remedy this, “things Unfortunately, that’s not the case.
low-wage jobs, with median annual earn- tends to be more self-congratulation CEOs who are implementing plans to ag- get things done when we CEO in the 1960s, you right now are all over the map,” says Jim DeLoach, man-
ings of just $17,950. among CEOs than honest self-reflection. gressively reduce their company’s carbon aging director at the consulting firm Protiviti. “We need
“We’re in a place where people’s lives Top executives “genuinely believe they footprint. In addition to con- globally accepted standards.” Remembering the positives
have not been made better off,” says Mr. are doing everything they can for their viction about the policy, he Ms. Yee, the California con- We started with an experiment where we asked 73 corporate direc-
Wilson, who serves as chairman of the exec- front-line workers and therefore don’t says, “that’s also what troller, is likewise eager for tors to choose between two hypothetical CEO candidates. The candi-
utive committee of the U.S. Chamber of have a bad jobs problem,” Katie Bach and their employees and, per- the government to establish dates possessed comparable strengths (e.g., a great industry reputa-
Commerce. In turn, he adds, a good portion Zeynep Ton of the nonprofit Good Jobs haps even more so, po- what stakeholder informa- tion) and weaknesses (e.g., viewed as a narcissist by some peers).
of the public has lost faith in the capitalist Institutewrote last month in Harvard tential recruits are de- tion companies must dis- After expressing a preference, directors were told that their favored
system, while politicians are lining up to Business Review. “But they aren’t and manding.” close. “I can’t over- candidate had in fact been selected to be the new CEO.
overhaul “our license to operate” and man- they do.” Paul Polman, state the role of When later asked to recall each of the candidates’ strengths and
date that corporate fortunes be shared more As CEOs try to navigate the crosscur- who retired in the regulators,” weaknesses, the directors tended to remember their chosen candi-
widely—a regulatory reaction that, some rents, they are being forced to summon a 2018 as CEO she says. date’s strengths and the other candidate’s weaknesses, and they
fear, could throttle economic growth. host of new skills. of consumer- Even the tended to forget their candidate’s weaknesses and the other’s
For its part, Allstate boosted its mini- “Over the past decade, the CEO of goods giant most commit- strengths. The directors also attributed strengths to their chosen
mum wage to $15 an hour in 2016, and Mr. choice was one who understood the bal- Unilever PLC ted CEOs stress candidate and weaknesses to the other that weren’t part of the

44%
Wilson has not been shy about urging his ance sheet,” says Tierney Remick, co- and has co- that it will be im- original description of either candidate. Despite their business acu-
fellow CEOs to create more decent-paying leader of the Board and CEO Services founded a venture called possible to make progress men, the directors unintentionally rearranged the facts in their
jobs. But he underscores that these are not team at Korn Ferry, the organizational Imagine to assist other CEOs alone. Some, such as Allstate’s minds to support their choice.
simple decisions, as he tries to attend to all consulting firm. “Over the next decade, in combating poverty and Mr. Wilson, want boards of di- Having established that corporate directors are susceptible to de-
of his stakeholders, including the millions you’re going to need someone who can global warming, observes rectors to step up. veloping faulty perceptions of their choices, we then asked: Does
who own Allstate stock. drive both a business agenda and a much pressure from all directions— Percentage of U.S. Jim Keane, CEO of furniture choice-supportive bias have financial implications? Directors who
“It’s not like being a student where I can broader stakeholder agenda.” “employees walking out, citi- maker Steelcase Inc., says helped hire the CEO might sup-
workers ages 18-64
get an A in every class,” says Mr. Wilson. Being successful at this, she says, zens making their voices he has been encouraging port the incumbent more than
“There are trade-offs.” “doesn’t mean having a lack of competi- heard, consumers making
with low-wage jobs everyone up and down the the company’s performance
You can see this tension play out in the tiveness.” But it takes considerable empa- spending choices, govern- ranks to weigh the broader warrants.
Drucker Institute’s annual company rank- thy and self-awareness, the ability to lis- ments demanding change.” impacts of the company’s Hanging On The possibility of this bias

370+
ings—a measure that is designed to assess ten deeply and communicate cogently, and And then there are share- activities. The more directors on a board who were playing out in the boardroom is
how effectively managed a corporation is the courage to tackle an array of some- holders, who, as Mr. Polman “Every decision made by involved in hiring the CEO, the more reluctant most worrisome when a com-
from a holistic, stakeholder perspective. times controversial topics. With an imper- points out, are increasingly every employee would be they are to change leaders. pany is on shaky ground, so we
(The rankings underlie the Management ative to deal more with what’s happening weighing where to put capital better if it more explicitly Number of CEOs fired between 2005 and examined data from poorly per-
Top 250, a list of the best-run U.S. compa- outside the company’s walls, a CEO also based “on the nonfinancials or considered the contextual 2015 from poorly performing S&P 1500 forming S&P 1500 firms across
nies, produced in partnership with The Wall has to prove adept at assembling and intangibles,” including those Big investors leaning on understanding that comes companies 10 years. We found that direc-
Street Journal.) Most are highly uneven in leading a strong cadre of senior execu- captured by environmental, so- companies on greenhouse from an ESG mind-set,” he tors who helped choose a CEO
their performance across the five categories tives who can concentrate internally. cial and governance metrics. gases in the Climate says. 20 were unusually reluctant to re-
examined: customer satisfaction, employee “These were all nice-to-haves before,” Last year, the US SIF Founda- Action 100+ initiative That is undoubtedly so. place that executive. Put an-
engagement and development, innovation, Ms. Remick says. “They are must-haves tion reported that U.S. money Yet it will be the CEO who is 15 other way, the more directors on
social responsibility and financial strength. now.” managers addressed ESG crite- celebrated for demonstrating the board were involved in the

800+
Indeed, of the 820 companies evaluated this ria across $11.6 trillion in as- authentic and meaningful CEO choice, the lower the
10
year, only eight scored among the upper sets. That’s one in four dollars “woke leadership,” as Ms. chance that a CEO would be
20% in all five areas. under professional manage- Yee terms it—or who gets fired in the year after two con-
Done right, watching out for all stake- HOW WE GOT HERE ment. slammed for being all talk. 5 secutive years of underperfor-
holders should ultimately improve societal In many respects, there is a back-to-the- mance. Such directors also
well-being and bolster the bottom line. future quality in what CEOs are being Board seats won by activist 0 tended to overpay the CEO rela-
investors since 2013 <3 3 4 5 6 7 8 9 10+ tive to his or her peers despite
NUMBER OF HIRING DIRECTORS ON BOARD poor performance.

Note: A company was considered to be performing poorly if it

suffered declining return on assets in two consecutive years. Study
investigated 1,154 poorly performing firms. Positive change
The Big Issues Source: Strategic Management Journal, Michelle L. Zorn et al. One implication is that some
CEOs are focusing more on environmental and social concerns, and some issues in particular are board turnover after hiring a
affecting their sustainability efforts.
new CEO is healthy. There’s no
Which of the following How are these issues impacting your company’s ability to address guarantee, but on average, our data on poorly performing firms indi-
global issues are most global environmental, social and economic sustainability challenges? cate that replacing just one of the directors who helped hire the CEO
critical for your
company’s competitive Increased my company’s sustainability efforts increases the chances of removing the CEO by about 20% within the
strategy? Reduced or stalled my company’s sustainability efforts year following two years of poor performance.
Another implication is that choice-supportive bias has a smaller
The Business Roundtable released a ‘Statement on the Purpose of a
Political uncertainty
across markets
Environmental
degradation* Trust in business
Global and local
governance models THE PRESSURE IS ON Corporation’ in August, signed by 181 CEOs who committed to the following:
impact on board decisions if a board has highly experienced directors
among its ranks, as measured by experience on other boards. Thus,
when turnover happens, filling vacancies with highly experienced di-
63%
rectors is wise.
41% 36% 33% In addition, we suspect that directors’ susceptibility to choice-sup-
portive bias has implications for other high-stakes decisions. For ex-
22 16 21 19 39 ample, directors might be more reluctant to undo failing acquisitions
42 54 48
Delivering value to Supporting the Generating and international expansions if those moves took place under their
Investing in our employees. Dealing fairly watch.
our customers. This starts with compensating and ethically with communities in long-term value If so, awareness may be half of the battle. As is true of most psy-
We will further the tradition them fairly and providing impor- our suppliers. which we work. for shareholders, chological biases, simply being alert to the possibility of choice-sup-
Market closures and Lack of stable institutions Rising income and
of American companies tant benefits. It also includes sup- We are dedicated to We respect the peo- who provide the cap- portive bias distorting perceptions can help directors protect against
Technology skills gap limitations on free trade and rule of law wealth disparity leading the way in meeting porting them through training and serving as good part- ple in our communi- ital that allows com- its effects. Understanding that it is natural to view one’s decisions too
or exceeding customer ex- education that help develop new ners to the other com- ties and protect the panies to invest, favorably can lead directors to ask harder questions if those decisions
pectations. skills for a rapidly changing world. panies, large and small, environment by em- grow and innovate. are delivering poor outcomes.
32% 31%
ILLUSTRATION BY ALEX NABAUM

26% 23% bracing sustainable We are committed to

We foster diversity and inclusion, that help us meet Dr. Ketchen is the Harbert Eminent Scholar at Auburn University
26 15 33 19 15 dignity and respect. our missions. practices across our transparency and ef-
32 35 34 and Dr. Combs is the Della Phillips Martha Schenck Chair of
businesses. fective engagement American Private Enterprise at the University of Central Florida.
with shareholders. Michelle Zorn, an associate professor of management at Auburn
University, and Kaitlyn DeGhetto, an assistant professor of
*Climate change, resource depletion management at the University of Dayton, also contributed to this
Source: Accenture Strategy CEO Study on Sustainability 2019 John Gould/THE WALL STREET JOURNAL article. The authors can be reached at reports@wsj.com.
 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.

R4 | Friday, December 13, 2019 THE WALL STREET JOURNAL.

JOURNAL REPORT | CEO COUNCIL

T
BY HAL GREGERSEN make people immensely happier. Think example, high-school age employees are en- know, to help employees brush up their ré-
about what it will mean when a recruiter titled to free SAT and ACT prep classes. Why sumés in a full-employment economy, but
ODAY’S FULL-EMPLOYMENT comes calling. While anyone is ready at a not do the same for employees’ children? most people know their careers are a long
economy may be a bonanza moment’s notice to leave a soulless worksta- Another company, Salesforce, makes well- game and will stick around for an opportu-
for a company’s sales fig- tion, it is much harder these days for people appointed meeting spaces available for its nity to level up.
ures, but it has a huge cor- to decamp from an office where not only are people to host meetings for outside, non-
porate downside: It’s hard they productive, but they have invested in profit groups they participate in.
to keep the best-performing making it their own—filling shelves with Bring colleagues closer.
employees from jumping things that reflect who they are and what Finally, remember that for many employees,
ship. they care about. Look for the holes the hardest thing about walking away from
Even business leaders who are old enough in their résumés. a job is leaving close colleagues. At too
to remember the last time unemployment was It is easy to leave a boss who seems more many companies today, though, that isn’t
below 4% say the poaching is worse this time Honor families. like an adversary than a coach. By contrast, the case. For example, as more work gets
around, thanks to the advent of LinkedIn and Imagine how great it would be if, when an it’s really hard to leave a boss who you are done through ad hoc projects, people may
other social media geared toward profession- employee got a convinced is in your switch teams too often to form close rela-
als. These allow employers with jobs to fill to tempting call from a corner, who be- tionships naturally. The

The Key to
mine the “passive talent market”—that is, the headhunter and lieves in you and same is true for the rise of
universe of professionals who haven’t even mentioned it at would be sincerely remote working. The an- Managers
put themselves on the market. home, the family’s delighted to see swer isn’t to reverse have been
What can employers do, now that even reaction was, “Aw, your career take course on these, but to handed a

Retaining
their most loyal talent is vulnerable? The best I’d be kind of sad if off. find ways to make up for rare oppor-
managers are getting creative—not by offer- you left XYZ Co.” This is especially the loss in natural rela- tunity to
ing higher pay pre-emptively, but by thinking Recently, a bio- true because most tionship-building. The make people
more about what would make someone sad to tech company I people have had a chief digital officer of one immensely

Your Best
leave, and about whether they are giving em- know held its ninth bad boss at some organization I know is happier, by
ployees enough of those things. They start Youth Leadership point, and realize particularly attuned to eliminating
with a simple question: Even if employees Day, with the spouse that, no matter how this problem because his the bare-
could get more money elsewhere by switching of the chief execu- great the job they team is mainly virtual. So bones work-
jobs, what would they miss and even feel tive serving as MC. are being recruited when he talks with the station.

Employees
wistful about? More learning-ori- for sounds or how team, he always gets peo-
Give people more of these, and they’re less ented than the typi- well it pays, they ple to share news and enthusiasms beyond
likely to entertain come-ons from competi- cal annual summer can’t really know in the strict business reason for the confer-
tors—let alone look for jobs on their own. outing, this one in- advance how the ence call.
cludes TED-style new boss will be. All of these actions not only can help
talks and interactive One manager I bosses fight off poachers, but they also will
Improve your space. workshops. Employ- know realized this leave bosses with a truly cohesive, capable
In some ways the easiest thing to fix is a ees and their chil- It isn’t easy in a full-employment and it hit her: For and committed team. The dividends from
change that has swept through workplaces dren could take a every person on her that will continue long after this labor-tight
economy. The trick is to make
since the last full-employment economy: the beginner’s judo les- team, she should sit economy eases up.
trend toward bare-bones workstations. The son with an Olympic workers think about all the great down with them A last piece of advice, then, is that man-
vast majority of workers, I believe, now sit at athlete, for example, things they’ll miss if they leave. and figure out what agers should apply this lens to their own cal-
desks with either no walls or or participate in a constitutes the big- endar: Does the commitment they are about
low walls. Researchers are “mad scientist” lab, gest hole in their to put on their schedule really align with the
now beginning to show what At one retail or do copper enameling under an artist’s current résumé. Together they pretend current imperative of retaining the most-tal-
workers have long known: company, guidance and go home with a handmade cre- they’re looking at a stranger’s CV with an ented employees? Would spending that hour
Open offices are a colossal high-school ation. eye to filling a next-level job. What would on that task make people understand that
mistake unless the only thing age This is just one example of how some take it to that next level, really make it pop they have a brighter future with the organi-
a company is concerned employees companies are finding their way to employ- out from a field of other candidates? Maybe zation than elsewhere?
about is real-estate costs. It’s are entitled ees’ hearts through their families. Some of the person could have managed a different If not, bosses should think twice about
the thing that drives knowl- to free SAT this is simply extending the same courtesies kind of project, or had more budget respon- saying yes to it.
edge workers craziest as ev- and ACT a little further—like sending flowers to sibility. Maybe they could use some “proof
eryone craves more personal prep classes. quinceañeras and not just to funerals. But points” about how much their work contrib- Dr. Gregersen is a senior lecturer at the
space. Why not do much of it goes further to consider how a uted to the bottom line or built up the local MIT Sloan School of Management, author
The upside, of course, is the same for family could benefit from having their family community. Make it your mutual goal to add of “Questions Are the Answer” and co-
that managers have been employees’ member work with an organization. At one that killer line to their résumé. author of “The Innovator’s DNA.” He can
handed a rare opportunity to children? of the world’s largest retail companies, for It sounds awfully counterintuitive, I be reached at reports@wsj.com.

On the Move
Workers in the U.S. have shown a tendency in recent years to spend less time with the same employer.
The amount of time U.S. adults have Median tenure with current employer of U.S. adults by industry, 2010-2018
spent with the same employer, January 2018
2010-2018 Tenure decreased Stay longer
Those who have spent Utilities Tenure increased
12 months or less with
the same employer 9 years January 2010
increased to 22.3% Beverage and tobacco products’ median
tenure decreased the most: 4 years.
%

Those who have 

spent 5 to 9 years
decreased to 18.8% Local government
MEDIAN TENURE WITH CURRENT EMPLOYER

3 to 4 years
7

State government
5


Hospitals Retail trade

5
10 to 14 years

Construction Professional and

 20 years or more
 technical services

Health services,
3 except hospitals
13 to 23 months
15 to 19 years Food services and
Waste management and remediation
drinking places
2 years services’ tenure increased the most: 2.9 years. Stay shorter
5
ALEX NABAUM


2010 ’18 0 2 4 6 8 10 12 14 16 million
TOTAL U.S. ADULTS BY INDUSTRY
Source: Bureau of Labor Statistics Ellie Zhu/THE WALL STREET JOURNAL
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THE WALL STREET JOURNAL. Friday, December 13, 2019 | R5

Special Advertising Feature

TECHNOLOGY REPORT

A Whole New
Communications
Ecosystem in the 5G Era
The future has arrived in the form of 5G technology. As telecommunication providers race
to tap into the potential that 5G will bring, technology brands and device makers will
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T
he next big thing in mobile connectivity antenna and multi-node 5G chipsets. In addition, originally tasked with setting standards for 3G, has
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infrastructure for new business models. 5G commercial service in March 2020. development. As 5G evolves, technology at large
is expected to bring unprecedented data speeds, will need to comply to new standards that ensure the
low latency and near-instant connectivity to users The Internet of (mobile) Things trust, reliability and security necessary to bring new
and service providers. It will let us stream high- consumers into the 5G era.
quality video in seconds, enable a new generation We have been living in the IoT era for some time Appreciating the importance of built-in security
of IoT, build a foundation for smarter factories and now. Smart speakers and other ‘smart’ products can in all aspects of the 5G ecosystem, Samsung has
cities, and even access virtual reality on the move. be regularly seen in most homes, albeit at a limited taken a leading role in setting international and
But making 5G work is no simple task; it requires scale and only able to communicate via a Wi-Fi link. industry standards—much like it did during previous
technology that is trusted, proven and reliable. Now 5G is set to change the scene. 5G supports network transitions, for example, when the industry
Devices will need to seamlessly connect to legacy one million simultaneous connections per square transitioned from 3G to LTE(4G).New use cases,such
networks if 5G is unavailable, massive amounts kilometer, which, when combined with high-speeds as connected cars and hospitals, rely on data that, if
of data need to be exchanged and analyzed, and and low latency, will have businesses eager to use stolen or intercepted, carry the risk in which safety or
a new ecosystem of communicating devices will 5G first and foremost with IoT. In manufacturing, privacy may be compromised.Samsung Knox,which
need to be brought into conversation with each for example, thousands of sensors can assist to is embedded in Galaxy smartphones and various
other. Technology companies are now stepping detect security risks, potential hazards and improve  

        



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do just this. AT&T and Samsung recently launched the U.S.Department of Defense.The combined power of
‘Innovation Zone’ in Austin, Texas to explore how 5G Samsung’s on-device and forthcoming on-network
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the future of Smart Factories. across the 5G network.
  
           
a smartphone, as makers launch new 5G-enabled The platform for success Working together
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available in the U.S. on Sprint, Verizon and AT&T as the scale of coverage required by customers.
each carrier rolls-out its own 5G network across the Manufacturers of connected cars, for example, need
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The Wall Street Journal news organization was not involved in the creation of this content. This content was commissioned by Samsung.
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R6 | Friday, December 13, 2019 THE WALL STREET JOURNAL.

JOURNAL REPORT | CEO COUNCIL

Pelosi Talks
Impeachment
And Growth
The Speaker of the House says despite
some strong economic indicators, wage
stagnation is hurting a lot of families

T
HE POSSIBLE IMPEACHMENT of President
Trump holds the potential not only to
affect the election of 2020 and change
the political party in power but also to
reshape the national agenda and the
landscape for business. To delve into
the issues, Matt Murray, editor in chief
of The Wall Street Journal, spoke with
California Democrat Nancy Pelosi, speaker of the U.S.
House of Representatives. Here are edited excerpts of
the conversation.

The big question

MR. MURRAY: The near consensus in this town seems to be the
Democrats have the votes to impeach and the Senate will ac-
quit. Separate from the merits of the case, do you agree with
that assessment?
MRS. PELOSI: You may think I’m eager to speak about it. But
we’re not eager to impeach a president. Nobody comes to Con-
gress to impeach a president. This is a very sad time for our
country. But we do have a responsibility to uphold our oath
of office to protect and defend the Constitution and the
American people.
On an issue like this, we don’t count the votes. I’ve never
asked anybody, were they for the inquiry. The growth question ent set of circumstances, we must The economy will really grow
There’s no glee in any of this. It’s prayerful, it’s somber, it’s MR. MURRAY: You know the strains take advantage of that opportunity for everyone when people have
sad for our country. I’d hoped, over a long period, there was on the global economy. You know to talk to each other, to listen to each more purchasing power. Spend, in-
something that could be China’s hurting. You know about the other, to value work. ject demand into the economy, and
exculpatory for the presi- tariffs. The American economy meet the needs of their families.
dent, because I didn’t keeps powering on. It’s not the We have to work in a public/pri-
want to ever think that strongest. But to what do you attri- vate/nonprofit way in order to
the president of the
United States would be
bute the continued job creation and
strength of this economy, even with
VOICES grow the economy, without de-
monizing anybody or distrusting
FROM THE
in a situation that made necessary the actions, by his actions, all the forces? the motivation of anyone.
CONFERENCE
that we have to take now. MRS. PELOSI: As you list all of those I do believe that what will bring
things, you forgot to mention the us all together are the arts. The
MR. MURRAY: Why not censure, at this point? Is that still stagnation of wages, which is a very poet Shelley once wrote the great-
alive? debilitating issue in most American est force for moral good is imagi-
MRS. PELOSI: No, it’s not alive. Never had a life. families. They’re not having a signif- nation. Creativity. And when peo-
icant increase in their pay over the ple enjoy art, music, theater,
MR. MURRAY: If you talk to CEOs, one of the big themes we’ve years in terms of relating to inflation whatever, laugh together, cry to-
heard about the last five or six years is uncertainty. There’s a or any other measure. While there gether, be inspired together, when
broad sense of frustration that the government feels divided. may be some indicators that are you use imagination to put your-
It’s hard to know where policy’s going. You’ve decried that, as great for us—the stock market’s up, self in someone else’s position, it is
other leaders have. Impeachment is obviously feeding that. Is this or that—that isn’t increasing very healing for our country, and
there a way past that kind of divide? consumer confidence to the extent very repairing.
MRS. PELOSI: Impeachment has nothing to do with that. I don’t that we needed to do. “While weighing the Our founders gave us much
want anybody to think that our economy will suffer because of When I send people to the table to interests of different guidance in many ways. One of
impeachment. What we have to do, though, is to come to terms negotiate, I always say, “Just go as stakeholders matters, at them was e pluribus unum. They
about a very serious matter, the disparity of income in our coun- an agnostic. Put in the middle of the the end of the day, there couldn’t imagine how many we
try, and how productivity and wages should be rising the same table growth. How do we grow the has to be an organizing would be, or how different we
as corporate pay is. economy in a way to create good- principle, a North Star, would be from each other. But they
We also have a challenge to the existence of our planet in the paying jobs and reduce the na- if you will. And we think knew we always had to try for
climate crisis. We have to, as we deal with that, do so in a way tional debt?” that needs to be wonders. They had their differ-
that lifts people up, creates good-paying jobs. I see it as a way And be agnostic. Wherever the delivering sustainable ences and their fights about the
to bring people together, and have people be participating in a good ideas come from, right, left, value, shareholder value role of government and the federal
way that they never thought possible because these are many whatever, we have to listen. We have for the long term.” government versus local. But we
new technologies. to be confident enough about what have one country, one destiny.
Whether it’s a climate issue, or how we build the infrastruc- our priorities are, but humble — AMY BORRUS, Let’s make the most of it work-
ture of America in a green way, or how we address the disparity enough to listen to what that might Incoming Executive Director, ing together for the good of our
in income, we have to do so with everyone at the table. be. I do believe that, under a differ- Council of Institutional country.
Investors

Kushner on
If you’ve noticed, in the swing districts the tant issues. First of all, I think it’s a divisive
president won that are currently held by Dem- issue in our country, and bringing a resolution
ocrats, there’s been a very aggressive effort to to it would help us patch that up.

Fixing the speak to those voters and say to them, “They

said they were going to Congress to try to
Second of all, economically, it’s a tremendous
issue. If you look at a country like Australia that

Immigration work on your issues, work for the country, and

this is what they’re spending their time on.”
has a merit-based immigration system, they ha-
ven’t had a recession in 28 years. A lot of these

System
companies that we meet with in the high-tech
MR. SEIB: But if the case is that strong, why industry, they want to bring people into this
not participate in the process? country. They’re opening offices in other places
MR. KUSHNER: I think it’s a predetermined because they can’t get some of their most
outcome. First of all, they never gave due skilled people who are high wage earners, GDP
process. They were doing depositions in the creators, job creators into the country.
DENNY HENRY FOR THE WALL STREET JOURNAL (2); RALPH ALSWANG FOR THE WALL STREET JOURNAL

basement. They weren’t allowing White We need a fundamental change to our immi-
House lawyers to come. They weren’t allow- gration system. Not just for the high-tech com-
ing agency lawyers to come. They weren’t re- panies, but also for a lot of the different indus-
specting the executive privilege and a lot of tries in the country.
the established norms that have been liti- We have a very detailed bill that we drafted
gated over time. on merit-based immigration.
They had a whistle blower who basically And then we did a bill on border security as
said something was done wrong, but he hadn’t well. What is the Rolls-Royce version of border
These are trying times for the White House— when the issue gets to the Senate, which it heard the call. The president said, “Let’s re- security? Then make sure that trade can happen
perhaps the most trying in recent memory. likely will, what’s the White House approach lease the transcript.” Then they said there was much quicker. We’ve put together a very good
Along with the impeachment process, there going to be? a quid pro quo, and the quid was basically that package on that, and we’re hoping to unify a lot
have been debates over trade and foreign MR. KUSHNER: We’ve been hearing about we were asking them to investigate a political of the Republican Party around the merit-based
policy, often heated. impeachment since the day I got to Washing- opponent, which when you saw the transcript, system and the immigration. And the border se-
To get an inside look at those issues—as ton. They’ve been attacking the president. A it’s not what he was asking for. curity.
well as President Trump’s plans for his 2020 lot of people didn’t expect that he would win. They were saying that we did that in ex-
campaign—Gerald F. Seib, executive Washing- A lot of people were unhappy that he won. change for the aid being held up, and the aid MR. SEIB: You say unify the Republican Party.
ton editor of The Wall Street Journal, spoke They made the decision before the whole was paid. There is the Democratic Party. Do you have
with Jared Kushner, senior adviser to the Ukraine thing even came up. So we were pre- any hope of unifying them around the ap-
president. Here are edited excerpts of the con- pared for it. MR. SEIB: Let me turn to something else proach you’re talking about?
versation. The first thing we did is we said, “Let’s just you’ve been involved in, which is immigra- MR. KUSHNER: That will be up to the presi-
get all the facts and make sure you know all tion. A gap seems to be growing in this town. dent if he wants to engage with them. I just
MR. SEIB: Tell me what the White House the facts.” Then we said, “Well, if they’re do- Are you going to have another run at that? think that it’s important to have the Republi-
strategy is in handling what’s happening in ing this, let’s make sure that we’re making MR. KUSHNER: I hope we get a chance to do cans unified on what they want to do before
the House right now on impeachment. And them pay as big a political price as possible.” that. I think that it’s one of the most impor- they got to the negotiations.
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THE WALL STREET JOURNAL. Friday, December 13, 2019 | R7

JOURNAL REPORT | CEO COUNCIL

Mulvaney on
culture discussion you’ve heard be hard. I think everybody recog- charge, this is what the spending
would be bound up in phase one. nizes the fact that at some point in would look like.” And that budget
But I think it makes perfect sense, time, we were going to have to have had dramatically smaller deficits
given the complexities of the deal, to these discussions with the Chinese. than on there [a chart showing an-

Ukraine, China
break it down into smaller pieces. To nual U.S. budget deficits]. What that
see if you can walk before you can MR. BUSSEY: Let’s move on to an- exposes is that, even when the Re-
run and crawl before you can walk. other sticky subject, the deficit. We publicans are in charge of the
can understand why in 2009, 2010 House, some Republicans like spend-
MR. BUSSEY: Phase one has been this happened. But over the last three ing money as much as Democrats.
described as, “You’re buying more years of some of the best jobs num- It’s hard to stop spending money.
agricultural goods from us. We’re bers and some of the strongest econ- MR. BUSSEY: Your stated expec-
Also: the Republicans’ inability to rein in the lowering some selective tariffs.” omy we’ve had in years, it’s growing. tations were that the tax cut would
deficit when they were in power MR. MULVANEY: I think that’s You were once a deficit hawk, a Tea stimulate the economy to the extent

A
probably not unreasonable. Party man. What happened? that the economy would grow faster
MR. BUSSEY: That seems to be at MR. MULVANEY: The years that re- than the deficit would accrue. And
cting White the opportunity, if the president in- best a return to a status quo. And ally bother me the most were, I guess that hasn’t happened.
House chief of structs me to tell my side of the it’s after tariffs have been imposed it was the budget years ‘17 and ‘18. MR. MULVANEY: Portions of it have.
staff Mick Mul- story. I’m looking forward to it. that have cost consumers, after tax- Because that’s when Republicans If you drill down into the numbers,
vaney, in an ap- payers have had to pay additional held the House, the Senate and the and again, it’s been a year since I’ve
pearance at The MR. BUSSEY: Sounds like the White funds to farmers who were hit by re- White House, and the deficit num- looked at this, I think almost all of
Wall Street House is taking the fifth. taliatory tariffs in China. So it’s re- bers were way too big then. And peo- the deficit that’s attributable to the
Journal’s an- MR. MULVANEY: No, John. That’s ally not even a return to the status ple said, “Oh, Mulvaney, you’re the tax deal is related to the child-care
nual CEO Coun- just not right. You take the fifth quo, it’s a half step back to the sta- budget director, you’re a deficit tax credit.
cil meeting on Tuesday, was non- when you’re in court. That’s not tus quo, and at some cost to the U.S. hawk, how could you allow this to The corporate tax cut actually did
committal when asked whether he what this is. This is a kangaroo pro- Not a great report card for three happen?” exactly what we said that it would
and Secretary of State Mike Pompeo cess. And I don’t mean to be too en- years of negotiating. Well, the truth of the matter is, do, generated a fair amount of reve-
would testify in a Senate impeach- ergetic about this, but this was MR. MULVANEY: I disagree. We what’s the president’s budget? The nue, so I’m very pleased with the re-
ment hearing. never a level playing field. You’re wouldn’t be having any of these con- president’s budget is essentially a sults of that, and certainly we have
“We’ll do whatever the president never given the opportunity to tell versations if Donald Trump wasn’t messaging document. And the mes- no complaints about the amount of
wants us to do, is what it comes your side of the story. Again, would president. This was always going to sage is, “If the president were in growth that we have.
down to,” said Mr. Mulvaney. anybody in this room go into that
Mr. Mulvaney had more to say on setting without the White House
trade talks with China and the U.S. counsel? That makes no sense at all.
economy, and he shared his Would you go in not knowing who’s
thoughts, and those of going to be able to ask
President Trump, with you questions and for how
Wall Street Journal As- long? Keep in mind, a
sociate Editor John Trade couple different times
Bussey. Edited excerpts talks with during this process, the
follow. rules changed in the mid-
China dle of the hearing.
MR. BUSSEY: Gordon were
Sondland, the Trump-ap- ‘always MR. BUSSEY: Let’s talk
pointed ambassador to about the next trade deal,
the European Union, says going to China. Dec. 15 is the dead-
that you were in the loop be hard.’ line that the administra-
on everything—the presi- tion has given [for addi-
dent’s effort to pressure tional tariffs on Chinese
Ukraine, to announce an investiga- goods].
tion of the Bidens, and to investigate MR. MULVANEY: What happens on
CHRIS WILLIAMS FOR THE WALL STREET JOURNAL

this debunked server issue, in return Dec. 15, I think, will have a lot to do
for Ukraine getting an audience with with what happens between now
the president and military aid. and Dec. 15. What’s the trajectory of
What’s your response? the discussions at that time.
MR. MULVANEY: I’m not going to MR. BUSSEY: What is the trajectory?
testify here today, but I will remind MR. MULVANEY: I think that the
everybody what Sondland said, trajectory toward a phase-one deal
which is that he very rarely talked to is pretty good. Now the phase-one
me and couldn’t get me on the deal is sort of the smaller-compo-
phone. The Democrats have certainly nents parts that deal mostly with
picked and chose what they want to trade and not with some of the
say. … I very much look forward to structural issues. A lot of the agri-
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R8 | Friday, December 13, 2019 THE WALL STREET JOURNAL.

JOURNAL REPORT | CEO COUNCIL

to other trading partners? ‘I think it’s

MR. KUDLOW: I think so. And as you
know, we’re in negotiations with better than
China. We’re also in negotiations Nafta. I think
with Japan. And we’re also in nego-
tiations with the EU. We may be in
it’s broader
negotiations with the United King- than Nafta.’
dom if that works out.
I have known [U.S. Trade Repre-
sentative] Bob Lighthizer for a very MS. HENDERSON: For individuals or
long time. I think he’s the best trade for companies?
negotiator in the business. He has MR. KUDLOW: My guess is it will
created a template, and it’s going to have a very strong emphasis on mid-
be very pro-growth. dle-class tax relief. And my guess is
it will include both business and in-
dividual reforms. And perhaps mak-
MS. HENDERSON: You and others in ing some things permanent. I
the administration have defended wouldn’t expect it until well into
tariffs as a tactic toward the goals 2020. Probably close to the election.
of leveling the playing field, making
trade fairer for American companies
and workers, stopping forced tech-
nology transfer and intellectual-
property theft. Executives have said
VOICES
the uncertainty is making it hard for FROM THE CONFERENCE
them to plan. And it isn’t just China.
We’ve had new tariffs announced
last week on Argentina and Brazil.
MR. KUDLOW: We haven’t imple-
mented any new tariffs. No decisions
have been made.

A Template for Lawrence Kudlow

says the new pact
with Mexico and
MS. HENDERSON: There also have
been proposed tariffs on France. And
last spring the president threatened
to impose tariffs on Mexico and then

Trade Pacts Canada is a model

for other deals
didn’t. Many executives have said
this has caused them to hold back on
“What we’re finding is
that automation is in no

T
investment and hiring. Many econo- way replacing jobs. But
mists have said that is a reason for what we do need is for the
he U.S. economy has been growing since 2009, its longest mission. A lot of people were quot- the global slowdown and U.S. eco- people that are working
expansion on record. But as the global economy shows ing lower numbers, but they actually nomic slowdown this year. How do in our warehouses and our
signs of slowing and trade negotiations heat up, where gave wide ranges of impact on the you respond? fulfillment centers to be
are things headed? U.S. economy over several years. On MR. KUDLOW: The U.S. economy is able to interact with that
Lawrence Kudlow, director of the National Economic jobs, the range was 176,000 to in great shape and getting better. automation. They need
Council at the White House, sat down with Nell Hender- 589,000. The midpoint is 382,000, We’ve had a soft patch after a year some level of technical
son, The Wall Street Journal’s economics editor, to dis- which is a gigantic number. On GDP, of very, very, very stringent mone- skills, which we provide
cuss these and other issues. the midpoint was three-quarters of tary tightening, which is a key point. as on-the-job training for
Edited excerpts follow. a percent. So you could over time Now the Fed has taken the foot off

CHRIS WILLIAMS FOR THE WALL STREET JOURNAL (2)

them. We do gaming
have an increase of three-quarters of the brake, and the balance sheet is technology so we can
MS. HENDERSON: House Speaker Nancy Pelosi just announced that Demo- a percent on real GDP a year. Those growing again. have them learn through
crats and the administration have reached agreement on a U.S.-Mexico-Can- are big numbers. The recent job numbers have games. We make it fun
ada trade deal and expect to vote next week. Is the new deal really better There also is a currency-stability been terrific. Housing numbers have so that they can continue
than Nafta? provision in there that’s never been been terrific. We had very good pro- to have the skills that
MR. KUDLOW: I think it’s better than Nafta. I think it’s broader than Nafta. done before. That is why we always ductivity numbers this morning. they need.”
And I think it updates Nafta in some important new ways. thought this was a template of a America is working. — BETH GALETTI, Senior
You have new economy issues, in particular intellectual-property rights, trade agreement. Vice President, World-Wide
which had never been put into one of these trade agreements before. Finan- MS. HENDERSON: Is the president Human Resources,
cial and digital services, too. They’re going to make a big difference. And I MS. HENDERSON: When you say going to propose another tax cut? Amazon.com Inc.
think you’re going to get a lot of investment that we might not have had. template, do you mean this is the MR. KUDLOW: We’re working on
I just pulled out some of the estimates from the International Trade Com- type of agreement you could apply something called Tax Cuts 2.0.
©2019 Dow Jones & Co., Inc. All rights reserved. 6DJ7580

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THE WALL STREET JOURNAL. Friday, December 13, 2019 | R9

JOURNAL REPORT | CEO COUNCIL

MR. BAKER: Do you think there was some

political motivation on the part of people at
the FBI to go after the Trump campaign in
this way?
MR. BARR: That’s why we have [U.S. Attor-
ney John] Durham. Durham is able to look at
all the evidence, he’s able to not only look at
the evidence within the FBI, he’s able to re-
quire people to testify. He’s able to talk to
other agencies, he’s able to talk to private
parties.
There was a lot of swirl of activity going
on at this time, it wasn’t all in the FBI. So I
think he will have a broader appreciation of
all the facts, and a determination can be
made. I don’t know what the motivations
were and I’m not saying they were improper
motivations, but I think it’s premature to rule
definitively there wasn’t.

MR. BAKER: On the Ukraine issue, the fa-

mous July 25 phone call between President
Trump and President Zelensky, there’s a
quote where President Trump says to Presi-
dent Zelensky, “There’s a lot of talk about
Biden’s son, that Biden stopped the prosecu-
tion,” that was of the Ukrainian prosecutor,
“and a lot of people want to find out about
that. So whatever you can do with the attor-
ney general would be great. It seems horri-
ble to me.” Did the Ukrainians do anything
with you?
MR. BARR: No.

MR. BAKER: Nothing at all?

William Barr
MR. BARR: No. And that’s taken out of con-
text, just to be fair. In the president’s call he
The attorney general the person is witting.” And that’s simply not started out by talking about the abuses in the
details where he true. I have authorized defensive briefings, 2016 election that he said, “our country has
disagrees with the paid a heavy price for,” and he asked him to

Vs. IG Report
and I know of defensive briefings that are
conclusions about regularly conducted. You look at all the cir- work with the attorney general on that.
the origins of the cumstances. Now the fact is, I was smart enough not to
If your purpose was to protect the elec- get involved with Ukraine, at least put it very
FBI investigation tion, then you would’ve done a defensive low on the list.
briefing here, because the chances of people

P
like Sessions or Chris Christie being in ca- MR. BAKER: Are you contrasting yourself
hoots with the Russians were pretty minimal. with Rudy Giuliani?
articipants at the annual Wall protect against a national security threat or But if there was stuff going on, then by going MR. BARR: No. I’m just saying that that
Street Journal CEO Council federal crime.” in, you brace them and you disrupt the activ- hadn’t reached the top of my to-do list yet,
meeting this week watched You said in response to that yesterday, ity in time to protect the election. and so fortunately I hadn’t looked into the
history unfold as U.S. Attorney “The FBI launched an intrusive investigation But it just doesn’t hold water because on Ukraine situation.
General William Barr took to on the thinnest of suspicions that were, in my Aug. 4 they contacted the head of Russian in-
the stage to deliver an ex- view, insufficient to justify the steps taken.” telligence and said, “We know what you’re up MR. BAKER: The allegation was that a U.S.
traordinary attack on the Fed- Could you tell us where exactly you disagree to. You’d better stop it.” They did again in citizen was perhaps corruptly acting with a
eral Bureau of Investigation, with Mr. Horowitz? later August, and President Obama did it di- Ukrainian. All the pressure was on the
and to defend his boss, President Trump. MR. BARR: I think there are three parts or rectly in September. So it doesn’t strike me Ukrainians to at least announce an investi-
The attorney general was interviewed by issues, let’s say categories of analysis in the as plausible that you would tell the Russians, gation. Why would that not be a matter for
Wall Street Journal Editor at Large Gerard report. The first is, was the investigation ad- who clearly were guilty of interference. But U.S. investigatory authorities?
Baker. Edited excerpts follow. equately predicated, the start of it? The sec- you wouldn’t go and talk to the campaign. MR. BARR: At the time I don’t know whether
ond one is, how was it conducted? And I That makes no sense. it was or not, frankly.
MR. BAKER: It may possibly have captured break that down into two things: How was
your attention this morning that the House of it conducted before the election and how
Representatives published two articles of im- was it conducted after the election? The
peachment against the president. real meat of Horowitz’s work, and the real
MR. BARR: There’s this political constitutional thrust of the report actually deals with
process under way on the Hill, and the attor- the conduct of the investigation, where I
ney general was not part of that process. think it quickly became apparent that it
And at this stage I’m just not going to com- was a travesty.
ment on it.
I will say that on the article of impeach-
ment relating to obstruction, I don’t believe
it’s the case that where somebody, including a ‘Where I disagree with
branch of government, is asserting a legal Mike is I just think this
privilege that they have under the law, that
that constitutes obstruction.
was very flimsy.’
MR. BAKER: Let’s move on to the other issue
that was occupying a lot of your attention I think that it’s a big deal to use the law
yesterday, which was the publication of the enforcement and the intelligence resources
report of the Justice Department inspector of the United States government to in-
general, Michael Horowitz, into the origins vestigate a campaign of especially an op-
and the conduct of the investigation of Presi- posing party.
dent Trump and his associates around the
Russia allegations about collusion with Rus- MR. BAKER: The report does make clear
sia. Mr. Horowitz in his report said yesterday, there were concerns about that and dis-
“We concluded that the FBI had an autho- cussions at very high levels within the FBI
rized purpose when it opened Crossfire Hurri- as to the sensitive information—
cane”—that was the name given to the inves- MR. BARR: What is the basis you have for
tigation—”to obtain information about or looking into something? And what are rea-
sonable steps to take, taking into consider-
ation the weight of the evidence that’s
prompting you to do that, the alternatives
VOICES
Data has a story to tell.
available, and exactly what you were trying
to accomplish, and also the sensitivity of
FROM THE CONFERENCE the area involved here, a political cam-
paign—core First Amendment activity.

We give it a voice.
And where I disagree with Mike is I just
think this was very flimsy. This was a com- ®
ment made by a 28-year-old volunteer on
a campaign in a bar offhand, which was
described as a suggestion of a suggestion.
And I personally think the subject matter
Inovalon is a leading provider of cloud-based platforms
of it, some vague allusion to the fact that empowering data-driven healthcare.
the Russians may have something that they
could dump—at that time in May 2016
there was rampant speculation going on in
the media, on the blogosphere, and in po-
litical circles that Hillary Clinton’s email
“What am I going to say that will server had in 2014 been hacked, and there-
inform you any more about Presi- fore the Russians might have those emails.
dent Trump? What you see is So drawing the conclusion that this kind
what you get. I had a pretty good of vague comment related to and showed
relationship with him. I was blunt preknowledge of the DNC hack and dump,
with him about what I was doing. I think, was a big stretch. But let me just
There was no behind-the-scenes finalize it, which is from my experience the
things going on. And again, where normal thing to do in this kind of situation,
I come from out West, actions and I have had analogous experience here,
speak louder than words. I quit on is to go to the campaign. And here I don’t
RALPH ALSWANG FOR THE WALL STREET JOURNAL (2)

him. I think that says enough. And think there’s a legitimate explanation for
the people who want me to say why they didn’t, especially because they
more generally are ones who want went to the Russians.
me to come out against the presi-
dent. We only have one president MR. BAKER: Well, I think in the report it
at a time. You can like him or dis- actually does say that they considered
like him. But I thought it was best this, but that there were concerns that it
I stay silent.” would be alerting the campaign and if
—JAMES MATTIS, former U.S. Secre- there was criminal activity they would be
tary of Defense (2017-2018); Distin-
guished Fellow, Hoover Institution
able to shut it down.
MR. BARR: Right. And what the FBI person
www.inovalon.com
said as to why he didn’t is, “We only do NASDAQ: INOV
that if there’s no possibility whatever that
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R10 | Friday, December 13, 2019 THE WALL STREET JOURNAL.

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