KOBE BRYANT, What Trump’s Foreign VENTURE CAPITALIST Policy Gets Right

JOHN BOLTON MONEY & INVESTING | C1 OPINION | A13 LUCY NICHOLSON/REUTERS ****** MONDAY, AUGUST 22, 2016 ~ VOL. CCLXVIII NO. 44 WSJ.com HHHH $3.00

Last week: DJIA 18552.57 g 23.90 0.1% NASDAQ 5238.38 À 0.1% STOXX 600 340.14 g 1.7% 10-YR. TREASURY g 19/32 , yield 1.580% OIL $48.52 À $4.03 EURO $1.1326 YEN 100.21 What’s Rio Closes the Summer Games With a Stirring Celebration U.S. Faces News Reversal In Asia if Business&Finance Pact Fails he ECB’s corporate- Tbond-buying program has so stirred the credit mar- BY JOHN LYONS kets that some firms are cre- ating new debt especially for President Barack Obama’s the central bank to buy. A1 troubled Pacific-region trade deal is threatening to become Pfizer is nearing agree- a foreign policy failure in Asia, ment to buy biotech Medi- where the U.S. loaded the ac- vation in a $14 billion deal cord with strategic signifi- that would expand its lineup cance as a counterweight to of cancer treatments. B1 the rise of China. Investor Wilbur Ross U.S. officials have billed the has been buying troubled 12-nation Trans-Pacific Part- energy debt in a bid to nership for years as central to take control of distressed a shift of U.S. military and oil-and-gas companies. C1 other resources to Asia. Now, Several big shale drillers with opposition toward the are tiptoeing back into the pact mounting on both the oil patch as the price of U.S. right and left in Washington, crude rises toward $50. B3 the likelihood of its ratification in Congress appears bleak. The Fed’s Fischer Failure at this point, experts raised concerns about the

RICARDO MORAES/REUTERS say, would dent U.S. credibility U.S. economy’s longer-term SPARKLING FINISH: Fireworks explode at the closing ceremony for the 2016 Olympics at Rio de Janeiro’s Maracanã Stadium. After two challenging on everything from trade to its prospects, calling for efforts weeks, capping two years of mainly bad news, Brazil passed the torch with both relief and a little self-congratulation. Olympics coverage, B9-10 commitment to a region where to boost productivity. A2 U.S. might has underpinned se- Some pension funds curity since World War II. are plying an arcane op- “For the simple reason that tions strategy that seeks to the U.S. invested so much in it, profit from others’ fear. C1 the deal acquired a kind of to- Stimulus Efforts Get Weirder talistic value that goes way be- Valeant is expected to yond its economic merits,” announce it has hired Paul said Euan Graham, a former Herendeen from Zoetis to As central banks run companies are creating new tremes of monetary policy in inviting private actors to con- U.K. foreign officer who stud- be its new finance chief. B3 out of bonds to buy, debt especially for the central what is an already unconven- coct specific things for them ies regional security at the U.S. investment in home bank to buy. tional age. In the past decade, to buy so they can continue Lowy Institute for Interna- remodeling and repairs they flood corporations In two instances, the ECB wide-scale purchases of gov- pumping money into the fi- tional Policy in Sydney. “To this year will top records, with cheap money has bought bonds directly ernment bonds—a bid to lower nancial system. leave Asian partners hanging new forecasts project. A3 from European companies the cost of borrowing in the The ECB doesn’t directly in- now would be disastrous for through so-called private economy and persuade inves- struct companies to create spe- U.S. leadership in the region.” A group led by China BY CHRISTOPHER WHITTALL placements, in which debt is tors to take more risk—have cific bonds. But it makes plain The administration contin- Everbright and PCP Capital sold to a tight circle of buyers become commonplace. Central that it is an eager purchaser, ues to hold out hope for the is pursuing a major stake in The European Central without the formality of a banks more recently have and it lays out the specifics of TPP’s passage. “We’re a vote Liverpool Football Club. B7 Bank’s corporate-bond-buying wider auction. moved to negative interest Please see BONDS page A2 away from either cementing Focus Financial confiden- program has stirred so much It is a startling example of rates, flipping on their head our leadership in the region or tially filed for an IPO that action in credit markets that how banks and companies are the ancient customs of money Jon Hilsenrath: The Fed and handing the keys of the castle could value it at $1 billion. C2 some investment banks and quickly adapting to the ex- lending. Now, they are all but the new normal...... A2 Please see PACT page A7 World-Wide NOWHERE TO HIDE FOR Funerals Follow Terror Attack Obama’s troubled Pa- cific-region trade deal is threatening to become a ‘DEAD WOOD’ WORKERS foreign-policy failure for the U.S. in Asia. A1 Many Republican donors in Silicon Valley are turning a cold shoulder to Trump, Kimberly-Clark throws out paternalism to focus on employee performance devoting their money and efforts elsewhere. A1 BY LAUREN WEBER with Kimberly-Clark. Clinton has amassed far That’s over. One of the more financial firepower Steady Ascent Not long ago, when Kim- Kimberly-Clark stock price company’s goals now is than her Republican rival berly-Clark Corp. employees “managing out dead wood,” heading into the final $150 gathered for interdepartmen- Friday: aided by performance-man- months of the campaign. A4 $126.78 tal meetings, they prefaced agement software that helps Trump’s campaign sug- their comments with their 125 track and evaluate salaried gested that the candidate is

names and years of service at workers’ progress and ILYAS AKENGIN/AGENCE FRANCE-PRESSE/GETTY IMAGES prepared to soften his stance the company. quickly expose laggards. BURDENED: Men carried a coffin on Sunday at a funeral for the on immigration, though the 100 These days, “no one cares,” Turnover is now about twice victims of a young suicide bomber who attacked a crowded signal was ambiguous. A5 said Scott Boston, vice presi- as high it was a decade ago, wedding party in southeast Turkey’s largest city, killing at least 51 Turkey’s president dent of human resources. The 75 with approximately 10% of people and wounding nearly 100. Turkish President Recep Tayyip blamed Islamic State for a attitude in meetings is “ ‘let’s U.S. employees leaving annu- Erdogan blamed Islamic State for the attack. A6 youth’s suicide-bomb at- get moving,’ ” he said. ally, voluntarily or not, the 50 tack that killed at least 51 For generations, having a company said. at a wedding party. A6 job at Kimberly-Clark meant Armed with personalized having a job for life. The 25 goals for employees and large Iraq executed 36 men maker of household prod- quantities of data, Kimberly- Silicon Valley Gives convicted of taking part in ucts such as Huggies and Clark said it expects employ- Islamic State’s massacre of 0 Weekly Kleenex paid its employees ees to keep improving—or soldiers in 2014. A6 above-market salaries and 2000 ’10 else. “People can’t duck and Trump Cold Shoulder India’s choice ofanew avoided layoffs. Source: FactSet hide in the same way they central-bank chief reflects Even low performers THE WALL STREET JOURNAL. could in the past,” said Mr. BY REBECCA BALLHAUS Mr. Trump. He spoke at the Re- the government’s desire rarely felt pressure. “A lot of Boston, who oversees talent publican convention last month for policy continuity. A8 people could and would hide in the weeds,” management globally for the firm. SAN FRANCISCO—Republi- in prime time, just before Mr. said Rick Herbert, a sales director who re- It has been a steep climb for a company cans have been trying to Trump formally accepted his Brazil will turn its at- tired in 2014 after more than three decades Please see WORK page A10 strengthen their ties to Silicon party’s nomination. tention to Rousseff’s im- Valley, in part to boost support Yet Mr. Thiel, who donated peachment trial now that from its wealthy executives. $2 million to a super PAC back- the Olympics are over. A7 Donald Trump, the party’s ing one of Mr. Trump’s former Zambia’s opposition leader To Be a Star College Athlete, Try Fishing or Frisbee presidential nominee, hasn’t presidential primary rivals, ex- asked a court to overturn the iii followed suit. Hewlett-Packard chief execu- presidential-vote result. A8 While other GOP presiden- tive Carly Fiorina, has no plans Millennials flourish on fields outside of football; lumberjack champ tial candidates earlier this elec- to donate to or raise money for Chileans rallied to de- tion cycle held meetings and Mr. Trump, a spokesman said. mand the dismantling of a fundraisers in the region, Mr. The frosty relations mean private pension system. A7 BY KELSEY GEE draw huge “Somehow I Trump has done little to form Mr. Trump’s fundraising opera- AND PATRICK MCGROARTY crowds to inter- can get up on a relationships here. Though the tion potentially is leaving mil- CONTENTS Moving the Market..... C2 collegiate com- block of wood executives largely lean Demo- lions of dollars on the table, Business News B2-3,8 Opinion...... A10-13 Closed-End Funds C5 Rio 2016...... B9-10 TINLEY PARK, Ill.—Billy Ad- petitions. His and chop an ax cratic, they include libertarians adding to his already-substan- Crossword...... B8 Technology...... B6 ams didn’t bother trying out claim to fame between my and others open to the party’s tial shortfall with Mrs. Clinton. Election 2016.... A4-5 U.S. News...... A2-3 for his high school basketball comes from toes,” said Mr. antiregulatory message. She ended July with $140 mil- Global Finance...... C3 Weather...... B8 or football teams. He quit la- wood-chopping Adams, a forest Now, many of the industry’s lion in her campaign, joint Heard on Street.... C6 World News...... A6-8 crosse after a week of practice contests. management Republicans say they are de- funds with the Democratic made him realize he hated His stardom major. “Everyone voting their efforts and money Party and a friendly super PAC; > running. “I always sucked at got a boost last deserves to have to congressional races or, in Mr. Trump’s comparable take sports,” he said. month when he Log chopping the same feeling some cases, to boosting Demo- was $78 million. Yet the 22-year old is now whacked his way that I had on crat Hillary Clinton. Larry Ellison, the billionaire an athletic star. At Paul Smith’s to victory over seven other that stage, at something Peter Thiel, the billionaire co-founder of Oracle Corp., College in New York state, Mr. collegiate lumberjacks at a na- they’re good at.” co-founder of PayPal, has be- Please see DONORS page A4 s Copyright 2016 Dow Jones & Company. All Rights Reserved Adams is known as “Wild Bill,” tional championship in front College sports—baseball, come the most prominent Sili- a campus sports hero able to of 5,000 screaming fans. Please see SPORTS page A10 con Valley figure to support Election 2016...... A4-5

A2 | Monday, August 22, 2016 **** THE WALL STREET JOURNAL. U.S. NEWS Fed’s New Normal May Use Familiar Tools

or much of the post-fi- zero in December. But it does the future. warns “one cannot rule out F nancial-crisis era, U.S. No Room to Maneuver mean it isn’t likely to raise The Fed’s last round of the possibility that there Federal Reserve officials The Fed has cut short-term interest rates by more than five them much beyond its next bond purchases—also known could be circumstances in the have held to a belief that they percentage points in each of the past four economic downturns, but few moves in the months and as quantitative easing, or future in which the ability of could get back to their old has no room to repeat that effort under current conditions. years ahead. QE—increased its securities the [Fed] to provide the de- way of doing things. Growth “We probably don’t have a holdings from $2.6 trillion to sired degree of accommoda- would resume at a modest How the federal-funds rate has changed in the past four downturns lot of monetary policy tight- $4.2 trillion. An S&P Global tion using these tools would pace, annual inflation would 20% enings to actually do over Ratings analysis found that be strained.” climb to 2% and interest rates time,” William Dudley, presi- third round supported the cre- would grad- dent of the Federal Reserve ation of 1.9 million jobs and he Fed’s challenge goes THE ually rise Bank of New York, told Fox helped reduce the unemploy- beyond managing an- 15 T OUTLOOK from near Business Network. ment rate by 1.3 percentage other recession. JON zero to a points. “By that measure, QE3 The topic of the Jackson HILSENRATH normal level ecause growth is slow worked,” S&P concluded. Hole meeting is “Designing Recession near 4% or 10 B and could remain so, Officials are wary of more Resilient Monetary Policy higher. 1980- and inflation corre- radical measures. Mr. Williams Frameworks for the Future.” As they prepare to gather 1982 spondingly low, the Fed has said the Fed might need to Fed officials heard special at their annual retreat in Jack- revised down its estimates of consider raising its inflation briefings from staff at their son Hole, Wyo., officials are 5 how high the fed-funds rate target from 2% to 3%, an idea July 26-27 policy meeting on grimly coming to a view that it 1990 will go in the long run. Most that hasn’t yet caught on with related topics. In addition to isn’t going to happen that way. officials see it reaching 3% or many others at the central the challenge of addressing Current 2001 Growth in economic output rate less. Four years ago, the con- bank. Meantime, negative in- recessions, it involves the 0 appears stuck at a slow pace, 2007- sensus was 4% or more. terest rates are seen by many shifting plumbing of how with inflation vulnerable to 1 5 10 15 20 25 30 35 40 45 2009 A low rate in normal times Fed officials as a last resort monetary policy is conducted undershooting the central Months after the rate peaked puts the Fed in a bind when that haven’t worked very well in a low-rate world. bank’s target. The Fed, in turn, Source: Federal Reserve THE WALL STREET JOURNAL. another recession hits. During in places like Japan. To manage its large securi- is starting to see that rates the past four downturns dat- A research paper by Fed ties portfolio and the abun- aren’t going to return to nor- tional tools used after the fi- The new normal, in short, ing back to the early 1980s, senior economist David Reif- dance of reserves it has placed mal and the way it conducts nancial crisis—including pur- could look a lot like what the the Fed cut short-term rates schneider argues that bond in the banking system, the Fed monetary policy and deals chases of long-term Treasurys Fed has been doing for the by 5 percentage points or purchases and low-rate prom- has rolled out new tools, in- with recessions is going to to push down long-term inter- past several years. more in an effort to stimulate ises ought to be enough for cluding interest payments to have to change. est rates and assurances of This isn’t to say the Fed growth by boosting borrow- the Fed to manage even a banks on their deposits at the “New realities pose signifi- low short-term rates into the won’t raise short-term rates ing, spending and investing. “fairly severe recession” that Fed. Lawmakers have com- cant challenges for the con- future—could be rolled out again sometime this year. It now looks like it won’t drives the unemployment rate plained to Fed officials that duct of monetary policy,” San when another downturn hits. Many officials expect it will. have that room to maneuver up to 10%. Doing so would re- the payments look like an un- Francisco Fed President John A portfolio of securities, now The Fed boosted its bench- next time. Officials will need quire the Fed to expand its se- fair subsidy to big banks. Williams said in a research $4.2 trillion, could grow. Un- mark federal-funds rate—a to turn to other tools to sup- curities portfolio by $2 tril- In this brave new world of note last week on the shifting popular interest payments to rate on overnight loans be- port growth in a downturn. lion, and possibly as much as central banking, it is another monetary policy landscape. banks for their deposits at the tween banks—by a quarter That includes bond purchases $4 trillion, the analysis shows. feature of the current landscape In this world, unconven- central bank could persist. percentage point from near and assurances of low rates in Still Mr. Reifschneider that just might not go away.

to the latest available data Still, the scant data are BONDS from the central bank, after The ECB Effect enough to make traders and Fed Official starting purchases in early Corporate bonds the ECB can buy have strategists scramble to divine June. The lion’s share has been performed better than those it can't. what the big fish is buying. ContinuedfromPageOne already-issued bonds trading Guessing right can pay off. Calls for its wish list. And the ECB isn’t in secondary markets, but 100 points Yields on corporate bonds alone: The Bank of Japan said some has come in new debt have plunged in Europe. late last year it would buy ex- sales, according to the ECB. (Yields fall when prices rise.) More Public change-traded funds compris- And Morgan Stanley has ar- 75 The average yield on euro in- ing shares of companies that ranged two private placements vestment-grade corporate spend a growing amount on that have been bought by the bonds is 0.65%, according to Investment “physical and human capital,” ECB, according to a Wall 50 Barclays, compared with 0.99% essentially steering fund man- Street Journal analysis of data before the program started BY DAVID HARRISON Ineligible agers to make such ETFs avail- from Dealogic and national and 1.28% before the bank said Eligible able to buy. central banks. 25 in March that it would buy Federal Reserve Vice Chair- The furious central-bank The ECB cited its website corporate bonds. man Stanley Fischer raised buying has been a relief to when asked to comment on “We’re all looking at the concerns Sunday about the companies and governments the corporate-bond-buying 0 data,” said the head of credit U.S. economy’s longer-term that can now borrow at rock- program. On Thursday, it up- trading at a major European prospects and said more pub- MarchApril May June July Aug. bottom interest rates. But it dated information on the site bank. “They’re only one new lic investment, along with reg- has also spurred criticism that to clarify that the bank can Note: Start date, March 10 based at 100. Relative performance of index of bonds Citigroup ulatory changes, could help deems eligible for ECB purchases versus index of bonds deemed ineligible. The lower an index customer—but it’s a big one.” the extreme policies are killing participate in private place- is, the tighter credit spreads are (gap in yield to government debt), and the better it performed. And banks are rushing to boost flagging productivity the returns available to other ments. The ECB isn’t involved Source: Citigroup THE WALL STREET JOURNAL. serve it. Credit Suisse Group numbers. But he was more op- investors, such as pension in defining the characteristics AG reshuffled its sales cover- timistic about the economy’s funds, and loading up the econ- of the bonds in these sales, a creetly,” said Apostolos Gkout- by national central banks, ac- age of national central banks short-term outlook. omy and financial system with spokeswoman for the central zinis, head of European capital cording to the Journal analy- in recent weeks when the In a speech in Aspen, Colo., potentially overpriced debt. bank said. markets at law firm Shearman sis. Morgan Stanley declined trading desk realized it wasn’t the Fed’s second highest-rank- TheECBwaslatetothe Private placements are pri- & Sterling LLP. to comment. doing enough business with ing official called for more central-bank party—it began vate debt sales not open to the The ECB executes bond pur- Iberdrola didn’t respond to the new largest buyer in town, spending on infrastructure quantitative easing only in broader market, typically rely- chases through the eurozone’s requests for comment. A according to a person familiar and education and adjust- 2015, years after the U.S., the ing on a handful of investors national central banks, which spokesman for Repsol said it with the matter. ments to regulations to en- U.K. and Japan—but it has em- that want to buy a company’s function like branches. makes sense for the company The ECB’s corporate-bond courage private investment. braced bond-buying with fer- bonds. The Bank of Spain holds to lock in low borrowing costs program may well grow fur- “The key to boosting pro- vor. In March, it boosted its For the company, such a some of a €500 million private in bond markets. “It’s all about ther. The bank is widely ex- ductivity growth, and the purchases to €80 billion sale allows it to raise cash placement issued by Spanish bringing your global interest pected to extend quantitative long-run potential of the econ- ($90.6 billion) a month from quickly without having to oil company Repsol SA on July payments as low as possible,” easing beyond March, when it omy, is more likely to be found €60 billion and surprised in- draft a bond prospectus. In- 1, and some of a €200 million the spokesman said. is planned to end. Government in effective fiscal and regula- vestors by saying it would vestors, for their part, are deal from Spanish power util- It is impossible to say ex- bonds are growing increas- tory policies,” he said. soon add corporate bonds to guaranteed to get a sizable ity Iberdrola SA sold on June actly how much the ECB holds, ingly scarce. The ECB can buy Productivity improvements its shopping list. chunk of the bonds they want 10, two days after the ECB because the national central only bonds that yield more are necessary for better long- It had already bought so to buy without having to com- program got under way. banks that make the purchases than its deposit rate, currently term economic growth and in- many government bonds that pete with the wider invest- Both deals were solely ar- disclose only which bonds minus-0.4%. That rules out creases in wages and living it was running out of things to ment community. ranged by Morgan Stanley and they have bought, not the vast amounts of German gov- standards. After rising rapidly purchase. “Typically there won’t be a are the only private place- amounts. For almost the first ernment debt, and much else during the internet boom of The ECB had bought more prospectus, there won’t be any ments issued since the start of six weeks of the program they too. the late 1990s, productivity, than €16 billion of corporate transparency, there won’t be a the ECB’s corporate buying didn’t give any details about —Tom Fairless contributed defined as the output per hour bonds as of Aug. 12, according press release. It’s all done dis- program to have been bought which bonds they had bought. to this article. worked, has slumped recently for reasons that aren’t well understood. ness surveys will help show how Mr. Fischer said productiv- Economic euro economies are holding up Fire in California Comes Close to the Hearst Castle itygrewanaverage1.25%an- after the U.K.’s vote to exit the nually between 2006 and 2015, Calendar European Union. The survey of well below the 2.5% annual eurozone purchasing managers, growth rate between 1949 and published by data firm IHS 2005. And the U.S. recorded Markit, could influence European productivity decreases for the Central Bank policy makers be- past three quarters, the lon- fore their Sept. 8 meeting. gest such stretch since 1979. Indicators from major econo- WEDNESDAY: Existing U.S. Economic growth has been mies are likely to affect the home sales rose in June to the tepid even though employers moods of central bankers set to fastest pace in nearly a decade, have been adding jobs at a return from vacation and possi- but for July, seasonally adjusted rapid clip. The U.S. economy bly adjust monetary policy in the existing-home sales likely posted a 1.2% annualized U.S. and eurozone. dropped by 0.4%, according to a growth rate in the second TUESDAY: In Europe, busi- WSJsurveyofeconomists. quarter, but the unemploy- THURSDAY: Economists and ment rate remains low. THE WALL STREET JOURNAL central bankers gather in Jack- Productivity has become a (USPS 664-880) (Eastern Edition ISSN 0099-9660) son Hole, Wyo., for a symposium top preoccupation for Fed offi- (Central Edition ISSN 1092-0935) through Saturday. Fed Chair- cials. Fed Chairwoman Janet (Western Edition ISSN 0193-2241) Editorial and publication headquarters: woman Janet Yellen’s Friday Yellen has said lower produc- 1211 Avenue of the Americas, speech could offer signs of tivity growth could be curbing New York, N.Y. 10036 whether the Fed sees enough the economy’s long-term Published daily except Sundays and general legal holidays. Periodicals postage paid at New economic momentum to support growth potential and the cen- York, N.Y., and other mailing offices. raising interest rates in Septem- tral bank’s ability to raise in- POSTMASTER : Send address changes to The ber or the coming months. JOE JOHNSTON/THE TRIBUNE/ASSOCIATED PRESS terest rates. Wall Street Journal, 200 Burnett Rd., Chicopee, MA 01020. Economists are divided All Advertising published in The Wall Street A wildfire speeding along Protection, or Cal Fire. art collection and a private zoo. over the causes of the produc- Journal is subject to the applicable rate card, copies of which are available from the CORRECTIONS California’s central coast de- The fire near Hearst San The facility was closed to the tivity slowdown. It is also un- Advertising Services Department, Dow Jones stroyed 48 structures and on Simeon State Park outside of public over the weekend, with clear when, or whether, pro- & Co. Inc., 1155 Avenue of the Americas, New York, N.Y. 10036. The Journal reserves the AMPLIFICATIONS Sunday threatened more homes, San Luis Obispo, grew to the fire burning just 2.5 miles ductivity will pick up again. right not to accept an advertiser’s order. Only as well as Hearst Castle, above, 24,000 acres. Ron Oatman, a away from it by Sunday. Mr. Fischer echoed the re- publication of an advertisement shall a National Historic Landmark fire captain and spokesman Staff, art curators and main- marks of other policy makers, constitute final acceptance of the advertiser’s order. Funding for basic research and popular tourist attraction. with Cal Fire, said the area tenance crews cleaned out including Ms. Yellen, who say Letters to the Editor: in China, which includes quan- More than 10,000 firefight- hasn’t experienced a major fire brush surrounding the landmark, more public investment is Fax: 212-416-2891; email: [email protected] tum physics, was $10.1 billion ers worked to contain six large in more than 60 years. The dry and covered windows with bar- needed to spur productivity NEED ASSISTANCE WITH in 2015. A World News article wildfires across the state, bat- vegetation, paired with wind riers and towels to protect the and economic growth. He was YOUR SUBSCRIPTION? Tuesday about the Chinese tling flames made ferocious by blowing in all directions, art from ash and smoke from more upbeat when describing CONTACT CUSTOMER SUPPORT. launch of a quantum-communi- dried vegetation after a five- caused the fire to jump out of the fire. Robert Chambers, a su- its short-term performance. The By web: customercenter.wsj.com cations satellite incorrectly said year drought, erratic winds and containment lines set by fire- pervisory park ranger at the U.S. has weathered potential By email: [email protected] it was $101 billion. high temperatures. “It’s what fighters Saturday. site, said a plan is in place to shocks such as the U.K’s vote to By phone: 1-800-JOURNAL we expect to see now,” said The Hearst Castle, a mansion move the art collection to a va- leave the European Union. He (1-800-568-7625) Readers can alert The Wall Street Lynne Tolmachoff, a spokes- built for newspaper publisher riety of storage facilities, if also said he expected economic Or by live chat at wsj.com/ Journal to any errors in news articles livechat by emailing [email protected] or woman for the California De- William Randolph Hearst in the needed, over the next few days. growth to “pick up” in the com- by calling 888-410-2667. partment of Forestry and Fire early 1900s, is home to a large —Jennifer Calfas ing quarters.

THE WALL STREET JOURNAL. ***** Monday, August 22, 2016 | A3 U.S. NEWS Zika Renews Focus on Abortion Debate

Some Southern states, tion. None of them have been hit hard by Zika. most vulnerable to Recently, some states have spread of the virus, weighed measures that ban abortion in cases in which tighten restrictions the fetus has genetic abnormali- ties such as Down syndrome. BY ARIAN CAMPO-FLORES North Dakota has such a law, AND DAN FROSCH and Indiana passed a similar one that was blocked by a fed- MIAMI—For the dozen eral judge in June. At least or so pregnant women infected seven other states have had with the Zika virus in the care similar measures introduced, of Christine Curry, an obstetri- according to the Guttmacher In- cian and gynecologist here, the stitute. It is unclear whether joy of pregnancy has become a such bans would apply to de- wrenching exercise in risk eval- fects stemming from Zika. uation. “If you’re a woman in this “Some women will say, ‘This situation, weighing the termina- is nature. Whatever the world tion of a pregnancy, you face a or God brings me, I will deal legal landscape that is compli- with,’ ” said Dr. Curry, an assis- cated,” Ms. Nash said. tant professor of obstetrics and Of the 529 cases of possibly gynecology at the University of infected pregnant women iden- Miami. “Other people have less tified by the CDC, so far five tolerance of risk. … They will have resulted in losses of fe- choose to end this pregnancy tuses with birth defects. Such because the unknowns are too losses stemmed from miscar- severe.” riages, stillbirths or abortions. The increase in the number According to a study pub- of pregnant women possibly in- lished in the New England Jour- fected with Zika—which reached nal of Medicine in July, requests

529 in the states and the Dis- GASTON DE CARDENAS/TRIBUNEfor NEWS SERVICE/ZUMA PRESS abortions through a tele- trict of Columbia as of Aug. 11, A groundskeeper at a Miami garden sprays pesticide to kill mosquitoes, part of an effort to stop the spread of the Zika virus. medicine service surged late according to the Centers for Dis- last year and early this year in ease Control and Prevention—is ter birth. Yet as more time “His position is pretty outra- though abortion was still mostly Twenty-four states ban the pro- some parts of Latin America af- focusing renewed attention on passes, abortion becomes less of geous on Zika and women’s illegal, more than 11,000 women cedure after a specific point in fected by Zika. In a group of the controversial issue of late- an option because of state re- ability to make decisions about sought the procedure, or had pregnancy, ranging from about seven countries, including Brazil term abortions. strictions on the procedure, es- what’s best for us,” said Sasha miscarriages, during the out- 20 to 27 weeks, with exceptions and Colombia, such requests in- It comes as many state legis- pecially late in pregnancy. Bruce, senior vice president of break, according to the CDC. for the life and health of the creased between 36% and 108%. latures are tightening restric- Republican Sen. Marco Ru- campaigns and strategy at Naral A STAT-Harvard poll earlier mother, said Elizabeth Nash, an Abigail Aiken, a researcher at tions on such procedures. Some bio, whose home state of Flor- Pro-Choice America, which sup- this month found that only 23% expert on state laws at the or- the University of Texas at Aus- of the most active efforts are in ida is grappling with the conti- ports abortion rights. of U.S. adults believe women ganization. Many of the states tin and one of the study’s au- the South, one of the regions nental U.S.’s first known cases Antiabortion groups ex- should have access to abor- that ban the procedure earliest thors, said that while it was still most vulnerable to the spread of Zika virus transmitted by pressed support for his stance. tion after 24 weeks of preg- in pregnancy, around 20 weeks, unclear how prevalent Zika of Zika by mosquitoes. mosquitoes, drew impassioned “Disease must be confronted nancy. But when asked about are in the South. would become in the U.S., ac- While the virus might not in- responses when he said this with life-affirming solutions,” women infected with Zika Another 19 states ban abor- cess to abortion for infected fect the fetus, if it does, it can month that he opposed abor- said Clarke Forsythe, acting pres- whose babies could have micro- tion at the point when the fetus pregnant women was likely to cause birth defects including tion for pregnant women in- ident of Americans United for cephaly, that jumped to 59%. becomes viable—meaning it become an issue in some areas. microcephaly, an abnormally fected with the virus. “I’m going Life, a legal and advocacy group. In recent years, a growing could survive outside the “The states likely to be hardest small head associated with im- to err on the side of life,” he The debate echoes argu- number of states have added re- womb—which can vary, perhaps hit by Zika virus are also states proper brain development. The told Politico. ments in the 1960s over an epi- strictions on abortion, espe- 23 weeks for one mother and 27 where rates of unintended preg- fetus may appear healthy in Florida bans abortions after demic of rubella, or German cially later in pregnancy, accord- weeks for another, she said. nancy are high and access to early ultrasounds, only to dis- 24 weeks of pregnancy, with ex- measles, which can cause birth ing to the Guttmacher Institute, Only seven states—including contraception and abor- play signs of birth defects late ceptions if the pregnancy en- defects if a mother is infected a research organization that Oregon and New Mexico—have tion services are most re- in the pregnancy, or af- dangers the mother’s health. during pregnancy. Al- supports abortion rights. no restrictions on later abor- stricted,” Dr. Aiken said.

New Kitchens, Renovated Baths Home Remodeling to Hit a High Spending on residential repair and remodeling this year is projected to surpass the prior peak set during the housing boom, with more BY CHRIS KIRKHAM housing recovery—with very line home improvement mar- But inventories of homes growth expected in coming years. low inventories of houses for ketplace, said home renovation for sale in metro Denver are Disaster repair Spending on single-family sale, often leading to price ap- has bounced back more among the lowest in the coun- $300 billion Rental small project home construction remains preciation and bidding wars— strongly than new-home con- try, meaning there was fierce Rental big project 40% below the levels of a de- has prompted many home- struction because consumers competition for the few houses 250 cade ago, but new forecasts owners to stay put and can do projects bit by bit. they liked. So instead, they de- Owner small project project U.S. investment in resi- improve the home they have. “Buying a house is a mas- cided to tap into their equity 200 dential remodeling and repairs “If you’re shopping for a sive proposition for just about and remodel the kitchen, this year will surpass records home, the number of options anybody: You have to jump floors and basement. set during the housing boom. out there are really low,” said through a lot of hoops and you “We’ll be a lot happier in 150 The expense for repairs and Todd Tomalak, a vice president have to have virtually spotless this home having all these up- remodeling is expected to sur- at John Burns Real Estate Con- credit these days,” said Mr. grades,” Ms. Port said. She 100 pass $300 billion this year, ac- sulting who focuses on build- Hunter. Those who already feels the investment will boost cording to forecasts from John ing products research. own homes, on the other hand, the value of the house, and al- 50 Owner big project Burns Real Estate Consulting The number of for-sale list- have seen their equity rise in low them to eventually trade and the Harvard Joint Center ings as a percentage of occu- recent years, increasing their up in “a less crazy market in a for Housing Studies, ahead of pied houses in the U.S. has hit borrowing power. “They’re couple of years.” 0 the previous high of about a record low this year, accord- able to get the loans they need Home improvement is ex- 2005 ’10 ’15* ’17 $285 billion in 2007. ing to data compiled by the to, and they’re able to dip into pected to continue rising over *2015 and later are projections. Remodeling and home firm. Recent surveys have savings,” he said. the next three years. The John Source: John Burns Real Estate Consulting THE WALL STREET JOURNAL. building both declined signifi- shown that a lack of available Brooke Port and her hus- Burns group forecasts spend- cantly in the years following houses and apartments is one band, Tyler, were looking to ing on repairs and remodeling apartment projects. 30 years ago now make up 65% the real estate bust, but the of the top reasons prospective buy a bigger house this year in will grow faster than new resi- Another factor expected to of the nation’s housing stock, fall was much less steep for home buyers haven’t moved. the Denver area, after the dential construction through drive spending on remodeling: up from 47% in 1995, according home renovation. Experts said Brad Hunter, chief econo- value of the home they bought 2019, largely because of a America’s homes are getting to census data analyzed by the the unusual nature of this mist at HomeAdvisor, an on- in 2013 had risen nearly 60%. slowdown in multifamily older. Homes built more than John Burns team. IceBox Derby Steers Teensto Science BY BECKIE STRUM

CHICAGO—Throwing a hel- #1 IN BUSINESS AVIATION met on over her orange ban- danna, Taylor Clark sprinted to her race car, slammed down Gulfstream is the number one brand in business aviation*. the accelerator and took off— at 15 miles an hour. Why? Because we consistently deliver That is top speed at the on our promises. third annual IceBox Derby, which featured battery-pow- GULFSTREAM.COM ered cars built by teenage girls using recycled fridges and go- kart parts. “These refrigerator cars are on the move!” an emcee’s voice rang out, as parents and children cheered in the bleachers. Earlier this month, 30 girls split on six teams vied for

prizes including MacBook Airs COMMONWEALTH EDISON COMPANY and $3,000 college scholar- Teenage girls build race cars from recycled refrigerators as part of an annual contest in Chicago. ships—seed money provided by race sponsor Common- frigerators into spiffy convert- computer coding. “I think cod- rese Jaeger, 17, who wants to be wealth Edison Co., the local ibles. Participants, who come ing is fun. It really makes you an aerospace engineer, to Mor- utility, meant to steer them from a variety of backgrounds think,” she said. “Power tools, gan Jones, 13, who dreams of toward studies in math and all over the city, submit appli- I’m not very good at.” being a YouTube personality. science. cations through organizations ComEd’s first female chief Morgan’s mom, Danielle Steering the bulky race car like the Girl Scouts and executive, Anne R. Pramag- Jones, 44, cheered excitedly around a track with multiple Girls4Science, a local nonprofit. giore, introduced the Ice- as Taylor, her daughter’s com- turns,Taylor,17yearsold,an They hooked up car seats, Box Derby in 2014 as a way to rade on team “Radiant aspiring physical therapist wired engines and installed so- get more young women to Flames,” cleared the finish line from a South Side neighbor- lar panels, a new element this pursue careers in science, first. hood, began to pull ahead of year, to run headlights and technology, engineering and “I have never seen anything her competition in the final horns. “They work so well to- math, or STEM, fields. like this,” she said, adding that heat, putting team “Radiant gether. They’re all in,” said An- “It’s one thing to sit in a she was not encouraged to go SCOTT NEAL +1 912 965 6023 Flames” in the lead. gela Breitenbucher, a volunteer classroom to decide if you like into math or science as a The competition was a test mentor and senior engineer at math or not,” Ms. Pramaggiore child. [email protected] of brainpower as much as ComEd, who watched one team said. “But we see them not “That’s what really gets *According to JETNET iQ Brand Reputation speed. The teens spent weeks repair a poorly installed battery only learn about the technical me,” said Ms. Jones, who of Aircraft Manufacturers surveys since 2011. in a garage on the West Side on its own. aspects of building a car, they works for Chicago Public learning from professional en- Irene Xu, 14, on team learn about leadership.” Schools. “I wonder what tra- gineers the technical skills “Sparkle Effect,” said she Career aspirations for this jectory my life would have needed to transform their re- learned she is far better at year’s racers range from The- taken if I had.” A4 | Monday, August 22, 2016 PWLC101112HTGKBFAM123456789OIXX **** THE WALL STREET JOURNAL. Clinton’s Cash Lead Grew in July

BY REBECCA BALLHAUS spending in July, paying out $18.4 million—up from $7.8 Heading into the final million in June. Yet none of

months of the presidential elec- that spending went to TV ads, DAVID PAUL MORRIS/BLOOMBERG NEWS; LUKE SHARRETT/BLOOMBERG NEWS tion, Democrat Hillary Clinton which are typically where Intel CEO Brian Krzanich canceled a Trump gathering while Hewlett Packard Enterprise chief Meg Whitman said she backs Clinton. has amassed far more financial presidential candidates direct firepower than her Republican most of their funds at this through June, GOP presidential fundraiser but as an opportu- rival, Donald Trump. stage in the election. DONORS Tech Dollars candidates, including those nity to discuss issues impor- Mrs. Clinton’s campaign Mrs. Clinton has spent $61 Donald Trump’s fundraising who exited the race, and allied tant to the tech industry. raised $63 million in July, on million on TV ads in the last efforts in the tech industry have super PACs collectively raised The media scrutiny of Mr. top of $26 million for two two months. ContinuedfromPageOne fallen far short of his rivals’. nearly $18 million from the Krzanich’s event “sent a chill joint funds with the Demo- Mr. Trump began airing his spent $5 million backing Sen. communications and electron- down a number of spines” of cratic Party and nearly $10 first TV ads of the general Marco Rubio in his GOP presi- Total donations from ics sector, which includes other tech Republicans who million raised by her friendly election over the weekend, dential run and in 2012 gave $3 communications/electronics the tech industry, according to may have considered a similar super PAC, according to new spending $4.8 million to million to a super PAC support- sector through June 2016 the nonpartisan Center for Re- event, said Trevor Traina, Federal Election Commission broadcast ads in four states. ing Republican nominee Mitt sponsive Politics. founder of e-commerce com- filings. Between her campaign, Mr. Trump also didn’t sub- Romney. But he has yet to open Clinton $30.7 million Mr. Trump’s share: pany IfOnly. Mr. Traina, who joint accounts and outside stantially increase his spend- his wallet for Mr. Trump, ac- $336,000. Mrs. Clinton’s haul gave $50,000 to a pro-Bush su- groups, Mrs. Clinton and her ing on staff and field organiza- cording to Federal Election Rubio* $7.9 from the industry in the same per PAC last year, said the re- tion efforts, two areas where Commission filings. A spokes- period: $30 million. allies ended the month with Bush* $2.5 sponse was akin to a “witch $140 million in the bank. his operation has lagged be- man for Mr. Ellison didn’t re- Some tech executives have hunt.” In contrast, Mr. Trump’s hind Mrs. Clinton’s. He contin- turn a request for comment. Paul* $2.5 been vocal critics of Mr. Mr. Trump has raised sub- ued to spend more on hats and Mr. Trump’s challenges are Trump. Nearly 150 published stantial funds online, bringing Clinton and allies other campaign merchandise— reflected in FEC filings and in- Trump $0.3 an open letter calling the nomi- in $64 million in July alone for $1.8 million in July—than on terviews with more than a nee a “disaster for innovation.” his campaign and a joint Re- had $140 million in *Denotes candidate has since quit the building out his campaign. dozen prominent Republican presidential primary Several tech companies re- publican Party fund via digital bank; team Trump Mr. Trump’s latest FEC fil- donors in Silicon Valley. Tech Note: Donations to campaigns and super PACs duced or eliminated donations and email efforts. But he has ing shows that his campaign executives say their dissatisfac- Source: Center for Responsive Politics to the Republican convention. struggled to make inroads in had $78 million. dramatically escalated spend- tion with Mr. Trump goes be- analysis of Federal Election Commission data Hewlett Packard Enterprise big fundraising centers. ing on consultants in July, yond his lack of outreach. His THE WALL STREET JOURNAL. Co. Chief Executive Meg Whit- Many top Wall Street do- paying consulting firms at calls for tougher limits on man, a billionaire Republican, nors, including hedge-fund bil- campaign raised $36 million least $10 million last month, trade and immigration conflict the California primary in June. earlier this month said she lionaire Paul Singer, haven’t in July, in addition to $44 mil- up from $1.5 million in June. with the industry’s interests, Mr. Trump has also attacked planned to back Mrs. Clinton rallied behind the GOP nomi- lion raised for his joint funds The biggest beneficiary was they say, and his controversial several top tech companies or and donate to her campaign. nee, and the industry was ran- with the Republican National a San Antonio-based web-mar- comments about various ethnic their CEOs. He fired shots at Planned fundraisers for Mr. kled by the Republican plat- Committee. His super PACs keting firm, Giles Parscale, and racial groups are culturally Apple Inc., for example, for Trump have also taken a hit. At form’s embrace of a law that raised about $4 million in that the campaign paid $8.3 out of step with Silicon Valley. what he called its noncoopera- least two co-hosts of an event would force the breakup of July. His campaign, joint million for “digital consulting/ Moreover, Mr. Trump rarely tion with a Justice Department in Seattle later this month—in- large financial institutions. funds and allied outside online advertising.” Brad talks about high tech’s role in terrorism investigation. cluding Mr. Trump’s Oregon Lawyers and lobbyists, a top groups had $78 million on Parscale, the firm’s president, the economy, focusing instead “For Silicon Valley Republi- state finance chairman—said source of Mr. Romney’s 2012 hand at the end of July. serves as the Trump cam- on efforts to aid small business, cans, this is just an extremely they didn’t plan to attend the contributions, also have kept Mr. Trump has lagged sub- paign’s digital director. He manufacturing and the coal in- unattractive candidate,” said gathering, citing the nominee’s their distance. Not a single reg- stantially behind Mrs. Clinton doesn’t draw a separate pay- dustry. Alex Slusky, founder of ven- policy positions and his attacks istered lobbyist had raised funds in polls, and if he doesn’t start check, according to the filing. Mr. Trump’s campaign de- ture-capital firm Vector Capi- on the parents of an American for Mr. Trump through June, ac- to look more competitive by In June, the campaign paid clined a request for comment. tal, who donated $100,000 to a Muslim soldier killed in Iraq. cording to FEC disclosures. Labor Day, Republican donors that firm $543,000. The firm, Silicon Valley donors say the super PAC backing Mr. Rubio in In June, Intel CEO Brian “You cannot speak so much and party leaders are expected which before 2016 had never Trump campaign hasn’t February. Mr. Slusky said that Krzanich planned an event for against immigration that you to increasingly steer their worked for a presidential cam- reached out to discuss policy or in conversations with fellow Mr. Trump at his Atherton, Ca- turn the best and the brightest time and resources toward paign, collected more than fundraising. He hasn’t released Republicans in the industry, he lif., home, but canceled it after from coming to the U.S., be- preserving GOP majorities in $4.1 million from the Trump a tech policy platform, as Mrs. refers to the 2016 campaign as the plans were reported by the cause that will hurt us,” said the House and Senate. campaign through June, much Clinton did in June. His cam- “the worst election in our adult New York Times. Mr. Krzanich, Robert Nelsen, a venture capi- Meanwhile, the Trump cam- of it for “website develop- paign opened an office near the lifetimes.” at an event last month, said the talist who gave $2,500 to a su- paign more than doubled its ment.” region just a few weeks before In the current election cycle gathering was planned not as a per PAC backing Mr. Rubio.

ADVERTISEMENT

The Science of Extreme Weather Taught by Professor Eric R. Snodgrass U       U -   TIME ED O T FF I E IM R L  U  70% 1. Extreme Weather Is Everywhere

O 2. Temperature Extremes and Cold-Air Outbreaks 1 R off D R 3. Low Pressure and Earth’s High Winds E E R B B M 4. Extreme Humidity, Rain, and Fog Y PTE SE 5. How Radar Reveals Storms 6. How Satellites Track Severe Weather 7. Anatomy of a Lightning Strike 8. Lightning Extremes and Survival 9. Thunderstorm Formation and Weather Balloons 10. Wind Shear and Severe Thunderstorms 11. Squall Line Thunderstorms and Microbursts 12. Supercell Thunderstorms and Hail 13. Tornadoes and Their Amazing Winds 14. Tornadogenesis and Storm Chasing 15. Mountain Windstorms and Avalanches 16. Ice Storms: Freezing Rain Takes Over 17. Epic Snowfall and the Lake Effect 18. Blizzards and Winter Cyclones 19. Flash Floods and Deadly Moving Water 20. Drought, Heat Waves, and Dust Storms 21. Where Hurricanes Hit 22. The Enormous Structure of a Hurricane Experience the World’s 23. Storm Surge and Hurricane Intensification 24. El Niño and Cycles of Extreme Weather Wildest Weather

Thanks to an ongoing revolution in the science of meteorology, we can now The Science of Extreme Weather understand how extreme weather conditions arise, produce far more accurate Course no. 1771 | 24 lectures (30 minutes/lecture) forecasts, and know how to protect ourselves when dangerous conditions develop. The Science of Extreme Weather is your field guide to the worst that Earth’s atmosphere can inflict. In 24 exciting, informative, and potentially life-saving half- SAVE $190 hour lectures aimed at weather novices and amateur forecasters alike, you gain a surprisingly powerful tool in the face of such overwhelming forces: knowledge. NOW $79.95 Guided by meteorologist, storm chaser, and award-winning teacher Eric R. DVD $269.95 +$10 Shipping, Processing, and Lifetime Satisfaction Guarantee Snodgrass, you learn the fundamental science that underlies blizzards, flash floods, Priority Code: 132561 hurricanes, tornadoes, heat waves, and more. You’ll come away with newfound appreciation and respect for weather’s most awe-inspiring phenomena. For over 25 years, The Great Courses has brought the world’s foremost Offer expires 09/01/16 educators to millions who want to go deeper into the subjects that matter most. No exams. No homework. Just a world of knowledge TGCU  .  /5 available anytime, anywhere. Download or stream to your laptop or PC, or use our free mobile apps for iPad, iPhone, or Android. 1-800-832-2412 Over 550 courses available at www.TheGreatCourses.com.

THE WALL STREET JOURNAL. **** Monday, August 22, 2016 | A5

Mixed Signals on Trump Immigrant Plan Campaign suggests signature issue for Mr. Trump, could be politically risky. stance may soften; On the one hand, GOP lead- Democrats and some ers have urged the campaign to soften its rhetoric in an at- in GOP see no change tempt to improve Mr. Trump’s poor standing with the grow- BY JAY SOLOMON ing universe of Hispanic vot- ers, who make up an estimated Donald Trump’s campaign 12% of eligible voters this year. suggested Sunday that the Re- But Mr. Trump’s fervent publican presidential candi- backers are counting on a con- date is prepared to soften his tinued tough line on immigra- stance on immigration, though tion. At his rallies, they fre- the signal was ambiguous. quently break into chants of Mr. Trump has made a tough “build the wall” to underscore stand on immigration a signa- his promise to build a wall to ture issue of his campaign, keep immigrants from Mexico pledging among other things to and Central America out. They create a “deportation force” to may grant Mr. Trump some rapidly remove some of the leeway, given his longstanding country’s estimated 11 million stance as a fighter against ille- undocumented immigrants. gal immigration, but also could On Sunday, his new cam- be upset with any move to ca- paign manager, Kellyanne Con- ter to other voters by soften- way, dialed back on that ing the message. pledge, suggesting the depor- Sen. Jeff Sessions, a key tation force might not be set Trump adviser, was asked on up after all. Asked on CNN if Sunday whether the candidate Mr. Trump would mobilize this still planned to quickly deport deportation force in the White the 11 million people if he won House, Ms. Conway responded: the White House. “To be determined.” The Alabama Republican, She added: “What he sup- speaking on CBS, was noncom- ports is to ensure that we re- mittal. “What I’m certain spect the law. He will lay out about is that he did not make a the specifics of that plan.” firm commitment yesterday, or Others in the campaign, the meeting the other day, though, suggested there would about what he will do with

be no backtracking on Mr. GERALD HERBERT/ASSOCIATED PRESS that,” the senator said. “But he Trump’s proposals to signifi- Republican presidential candidate Donald Trump, center, holds a Hispanic advisory round table meeting in New York on Saturday. did listen, and he’s talking cantly tighten immigration about it.” policies. ing “rapists” and his plan to indication he would support tion laws, uphold the Constitu- could hurt many families. “We Mr. Sessions emphasized Mr. Trump tried this past build a wall between the U.S. legalization for some undocu- tion, and be fair and humane believe the RNC official in the Mr. Trump isn’t backing off his week to reach out to minority and Mexico. mented residents. while putting American work- room, the campaign’s state- plan for “extreme vetting,” or groups, in part by holding a The meeting produced a A Trump spokesman, Steven ers first,” he said. ment after the meeting and ideological assessments, for meeting on Saturday with his tangle of reports that indi- Cheung, said the candidate’s John Podesta, chairman of the candidate himself that those coming into the U.S. Hispanic Advisory Council at cated Mr. Trump told the gath- immigration position hasn’t Democratic candidate Hillary Donald Trump’s immigration “The American people Trump Tower in New York. Mr. ering that he was open to changed. “Mr. Trump said Clinton’s campaign, said the plan remains the same as it’s clearly support the idea that if Trump has angered many His- changing his view. A Republi- nothing today that he hasn’t Trump position doesn’t appear always been: tear apart fami- you can’t vet somebody from a panic leaders during the cam- can National Committee repre- said many times before, in- to have changed, and added lies,” Mr. Podesta said. dangerous area of the globe, paign, due to his comments sentative at the Saturday ses- cluding in his convention that the GOP nominee’s posi- Any retreat on immigration they should not be brought about Hispanic immigrants be- sion said Mr. Trump gave no speech—enforce our immigra- tions add up to a policy that policies, which have been a into the U.S.,” he said. North Carolina Senate Contest Suddenly Turns Tight BY SIOBHAN HUGHES burg County Democrats, with African-American women. She Close Race presidential nominee Hillary emphasized her support for WINSTON-SALEM, N.C.— Results of recent U.S. Senate Clinton’s campaign, will mount compromise gun-control legisla- Among the threats to the GOP races in North Carolina a voter-registration drive, hop- tion Mr. Burr opposed and de- majority in the U.S. Senate this ing to energize Democrats, es- fended the Affordable Care Act. Democrat Republican year, few Republicans worried pecially African-Americans. She drew the most enthusiastic Erskine Bowles Elizabeth Dole about North Carolina, thanks in 45% 53.6 There aren’t signs of compa- response when noting Mr. Burr’s part to the state’s conservative- 2002 rable efforts by the Trump cam- vote against confirming Loretta leaning military bases and rural paign, which is relying heavily Lynch, the first black woman to communities filled with work- Erskine Bowles Richard Burr on the Republican National serve as U.S. attorney general. 47 51.6 ing-class voters. 2004 Committee’s operations in the So far, Mr. Burr’s campaign Until now. In the past few state. But Mr. Burr, a policy-ori- shows few signs of the retail months, a new set of political Elizabeth Dole Kay Hagan ented chairman of the Intelli- campaigning associated with currents has coalesced to make 44.2 52.7 gence Committee, said he isn’t competitive contests. It waited 2008 two-term GOP Sen. Richard relying “on anyone’s coattails” until Tuesday to begin TV ads. Burr vulnerable to an unexpect- in this election. He didn’t ap- If Mr. Burr does win, it could Elaine Marshall Richard Burr edly strong challenge from 43.1 54.8 pear with Mr. Trump at a rally be thanks to voters like Brock Democrat Deborah Ross, a law- 2010 in Charlotte last week. Shahan, a 29-year-old banking yer and former state legislator “North Carolinians seem to consultant who just moved to who wasn’t even her party’s Kay Hagan Thom Tillis separate races in a very effective Charlotte from Tulsa, Okla., and 47.3 48.8 first choice. 2014 way and there’s a lot of cross- has no idea who Mr. Burr is. “North Carolina is no longer 40 45 50 55% over voting that goes on,” he “I’m a registered Republican

a lock for Republicans,” wrote LAURA GREENE/THE ENTERPRISE/ASSOCIATEDSource: PRESS North Carolina State Board said. “I don’t think that this year but I hate Trump,” said Mr. Jennifer Duffy, who follows Deborah Ross, a Democratic running for U.S. Senate, speaks in of Elections will be any different.” Shahan. He said he would likely Senate races for the nonparti- High Point, N.C., in late June. A recent poll put her in the lead. THE WALL STREET JOURNAL. Ms. Ross has been working vote for Gary Johnson, the Lib- san Cook Political Report, hard to connect with voters, par- ertarian candidate, for presi- which on Friday changed its as- Democratic senator, it could be have allowed transgender peo- straight GOP ticket including ticipating in events like one in dent, and then “I’ll probably do sessment of the race to a tossup part of a wave that sweeps into ple to use the bathroom corre- for the GOP presidential nomi- Wilmington, N.C., last Tuesday a straight [Republican] ticket from one that had leaned Re- other places that had leaned sponding to the sex with which nee. Nonetheless, he said, “I with roughly 50 people, mostly for the rest.” publican. Republican. they identify. think all the Republicans are A recent Wall Street Journal/ North Carolina’s Republican Then came Mr. Trump’s as- being pulled down by Trump.” NBC News/Marist poll put Ms. Party has been so dominant cent. In a state that prides itself Nowhere are the concerns Ross two points ahead of Mr. that it controls the governor’s on humility, many Republicans greater than in vote-rich Meck- Burr after earlier being seven mansion, the Legislature, both aren’t enamored of the brash lenburg County, which has ab- points behind. U.S. Senate seats and all but New York businessman, raising sorbed many of the more than The new competitiveness in three of 13 House seats. But the risk that they simply won’t half a million new arrivals to a state once considered an easy there was political turmoil even turn out to vote. the state since Mr. Burr’s last win for Republicans is a mea- before Mr. Trump became a fac- “I just wish that he’d handle election in 2010, as banks like sure of how the lack of enthusi- tor. Republican Gov. Pat Mc- himself more appropriately,” Wells Fargo have expanded asm for Donald Trump at the Crory, who is up for re-election said Rich LaVecchia, a 56-year- their Charlotte hubs, and begun The Whole top of the ticket is hampering this fall, roiled Democrats when old Charlotte resident. Mr. sponsoring events like an LGBT the party down-ballot. If a state he signed a law to override a LaVecchia is a longtime Repub- festival and parade. like North Carolina elects a Charlotte ordinance that would lican who plans to vote a On Tuesday, the Mecklen- Home Intruder Solution GOP’sNewTackonOverseasProfits BY RICHARD RUBIN sales, which are harder to “territorial” tax proposals to come at home, in a tax haven move than profits. Both pro- make the U.S. more like the or in Germany, so there would WASHINGTON—President posals share roots with plans U.K., giving up U.S. claims on be no benefit to shifting prof- Ronald Reagan once chided from Democratic-leaning its companies’ foreign profits. its abroad. government’s approach to the groups, though Hillary Clinton The logic: Make sure U.S. com- The House plan from Ways Every year, there are over 2 million economy as following this has signaled her intent to panies don’t face a higher tax and Means Committee Chair- burglaries in the United States.* mantra: “If it moves, tax it.” toughen the existing system. burden than their foreign com- man Kevin Brady of Texas *Department of Justice 2009 Today’s Republicans are fol- The U.S. now attempts petitors do. marks an even more funda- lowing Mr. Reagan’s ideas by to tax its companies on income But those plans put even mental rethinking. It would let But you can protect your home and family with trying the exact opposite ap- earned globally, trying to make more focus on the question of companies write off capital SimpliSafe Home Security. With SimpliSafe, proach. The tax plans them indifferent to investing where income is earned. They purchases immediately and re- the doors, windows, and high-traffic areas of from House Republicans and domestically or abroad. either sap government revenue peal the tax deduction for in- your home are secured by a massive arsenal presidential candidate Don- It doesn’t work that way in or require more baroque rules terest expenses, making it of sensors. ald Trump stop aiming at the practice. Companies get for- to protect the U.S. tax base. harder to use debt to shift moving target of U.S. compa- eign tax credits, so they aren’t The new Republican plans profits across borders. If a burglar so much as tries to break in, our nies’ foreign profits. double-taxed on overseas depart from past thinking, Mr. Brady’s 20% tax would monitoring center (CNET Editors’ Choice Their plans would alter ex- earnings. They don’t pay the though they are still tax cuts be border-adjusted, using rules Award-Winner) dispatches the police isting rules so thoroughly that residual U.S. tax until they re- that lower the burden on busi- that apply to value-added within seconds. companies would get little ad- patriate the money. That gives ness and are territorial in the taxes in other countries. Im- g vantage from cross-bor- U.S. companies incentives to sense that they don’t tax for- ports would get taxed. Exports Try it risk-free with our 60-Day 10% der tax maneuvers they per- book profits in low-tax coun- eign sales. As such, they are would be tax-free. Money-Back Guarantee. fected over decades. tries, leave trillions of dollars likely not acceptable to Demo- The House plan may appeal ff w Mr. Trump’s original tax there and borrow when they crats without major changes. to Mr. Trump because it could plan would impose the same, need cash. Mr. Trump’s original plan encourage companies to locate immediate tax rate on corpo- As a result, the Internal from 2015 called for lowering production in the U.S. It is dif- rate income no matter where it Revenue Service chases corpo- the corporate tax rate to 15% ferent, however, from the im- SimpliSafe.com/ws is earned. As he revamps his rate profits as they move from 35% and would stop com- port tariffs he has talked ideas, Mr. Trump is consider- briskly from country to coun- panies from deferring U.S. about, because the tax would ing adopting the House plan. try, generating disputes with taxes on foreign profits. U.S. apply to products consumed in That proposal would levy U.S. companies. companies would pay a the U.S., whether produced do- taxes based on the location of Republicans long backed 15% tax, whether they earn in- mestically or abroad.

A6 | Monday, August 22, 2016 THE WALL STREET JOURNAL. WORLD NEWS Bombing Hits Wedding Party in Turkey President Erdogan blames Islamic State Blow by Blow and says a youth Islamic State has claimed responsibility for, or been carried out the attack blamed for, a string of deadly attacks in Turkey since the BY MARGARET COKER middle of last year, including: AND THOMAS GROVE June 5, 2015 Explosive device is ISTANBUL—Turkey’s presi- used to kill four people in dent blamed Islamic State for Diyarbakir, southeastern Turkey. turning a youth into a human bomb at a crowded outdoor July 20 Suicide bombers kill 33 wedding party in southeast in two southeastern towns. Turkey’s largest city, killing at least 51 people in an attack Oct. 10 Suicide attack hits that underscored how the war Kurdish rally in Ankara, kills 107. in neighboring Syria is desta- bilizing the region. Jan. 12, 2016 Thirteen tourists The bombing in Gaziantep are killed by a suicide bomber in targeted a largely Kurdish Istanbul’s historic district. neighborhood and turned a celebratory summer night Sat- Mar. 20 A suicide bomber kills urday into a scene of anguish four pedestrians on Istanbul’s and mourning. The couple was most famous commercial street. recovering on Sunday from in- juries sustained in the massive June 28 Three bombers strike blast as investigators worked Istanbul’s main international to identify the charred body airport, killing 44 people. parts of guests and family members. Aug. 20 Attack on wedding

Dozens of funerals took AGENCE FRANCE-PRESSE/GETTY IMAGE party in Gaziantep leaves at place on Sunday, including Mourners look on at a funeral on Sunday for victims of a bombing at a wedding party in Gaziantep, Turkey, the night before. least 51 people dead. ceremonies for 29 children who forensics teams had man- have long used Gaziantep, aged to identify. Nearly 100 which is 70 miles from Aleppo, people, including many Ankara Plans to Use Ties With Russia, Iran to Seek End to Syria War to hunt Syrian opposition fig- women and children, were ISTANBUL—Turkey’s prime key that support opposition multiethnic population, without In the long term, both the U.S. ures and journalists who fled wounded in the attack. minister said his government groups in Syria must accept the regime leader. and Russia know that Assad the fighting in their homeland There was no immediate will play a more robust role in that a short-term stabilization “The most important priority isn’t possible for stability.” and gained refugee status in claim of responsibility, but Syria by leveraging its warm- plan would mean a prolonged is to ensure that the killing This month, President Recep Turkey. President Recep Tayyip Erdo- ing ties with Russia and Iran to role for President Bashar al- stops and people stop being Tayyip Erdogan has visited his Attacks on Kurds have gan said a youth between 12 help forge a deal to end the Assad. But he added that Tur- displaced. Turkey will work to Russian counterpart in St. Pe- soured the already checkered and 14 years old carried out long-running war and imple- key and its partners, including achieve that,” Mr. Yildirim said. tersburg and Turkey’s foreign relationship between Turkey’s the attack and said the bomb- ment a political transition in the U.S. and Russia, agree the “The question is…will Assad be minister traveled to Tehran. U.S. major opposition party, the ing had the hallmarks of Is- the neighboring country. longer-term vision for Syria there [in the future] or not. Vice President Joe Biden is set People’s Democratic Party, or lamic State. Prime Minister Binali Yildi- must be a new government The answer is no. But like it or to arrive in Ankara this week. HDP, and the ruling Justice Turkey has been battling rim said nations such as Tur- that is representative of Syria’s not, Assad is still playing a role. —Margaret Coker and Development Party, or the group as part of an inter- AKP. The HDP, which repre- national coalition, and has special operations forces wedding day. Friends and rela- Those who survived, or by Sunday night, among them sents a significant segment of suffered multiple bombings routed Islamic State positions tives were outside to enjoy the who rushed to the scene to a three-month-old baby and a the minority Kurdish popula- targeting Turkish citizens this in the Syrian city of Manbij, festivities in the neighbor- help the injured, were over- Syrian boy. tion, has accused the govern- year, including a devastating cutting the terror group’s last hood, home to many families whelmed with gruesome It is unclear how the at- ment of playing down the attack at Istanbul’s Atatürk In- major road link to Turkey, who had fled violence between scenes. “We couldn’t see any- tacker penetrated the event. threat from Islamic State to ternational Airport. which it had used to shuttle the Kurdistan Workers’ Party, thing. Nothing but body President Erdogan also said it its constituents. Turkey’s Kurds in particular foreign fighters and supplies or PKK, and government parts,” the groom’s brother, was unclear whether the sus- The government denies have come under fire from Is- to its so-called caliphate. Tur- forces across Turkey’s south- Sukru Akdogan, told the state- pected young bomber trig- those allegations and says it is lamic State. Kurds in Syria and key’s prime minister said Sat- east to the relative peace of run Anadolu news agency. gered the explosives on his committed to keeping all of is Iraq, who are ethnically re- urday that his nation was Gaziantep. Besna Akdogan was dis- own, or whether they were citizens safe from terror. Dur- lated to their kin in Turkey, stepping up its role in finding Witnesses told Turkish tele- charged from the hospital on detonated remotely. The local ing the first five months of have been among the most ac- a peace deal for Syria. vision that guests had been Sunday, but needed assistance prosecutor’s office said it had 2016, 989 individuals in Tur- tive groups fighting the ex- The attack on the wedding dancing and enjoying them- from her relatives to make it recovered fragments from a key were detained on suspi- tremists. party came just before 11 p.m. selves when the explosion, home. “They turned our wed- possible suicide vest, and said cion of having links to Islamic Earlier this month, a Syrian on Saturday. Besna and Nuret- which was loud enough to be ding into blood,” she said, ac- that more information would State, according to govern- rebel offensive carried out tin Akdogan were presiding heard several neighborhoods cording to Anadolu. be released later about the ment statistics. largely by Syrian Kurdish over traditional henna cere- away, tore into those celebrat- Hospital workers had iden- identity of the attacker. —Valentina Pop in Brussels groups and backed by U.S. monies ahead of their formal ing. tified only 41 of those killed Islamic State operatives contributed to this article. Iraq Hangs Baghdad Rebuilds Men Charged After Attack That In Massacre Associated Press BAGHDAD—Iraq executed Killed Hundreds 36 men convicted of taking part in Islamic State’s massa- BY BEN KESLING Baghdad Mayor Zekra cre of hundreds of soldiers in Alwach toured the complex in 2014, officials said. BAGHDAD—Government of- the central Karrada neighbor- The men were hanged at ficials on Saturday began the hood, shortly after trucks be- the Nasiriyah prison in south- reconstruction process on a gan clearing rubble. She prom- ern Iraq on Sunday, according central shopping complex ised compensation to victims to provincial Gov. Yahya al- weeks after it was destroyed and aid to shop owners. Nasiri. A Justice Ministry offi- by the deadliest suicide bomb- By Sunday morning, both cial confirmed the executions. ing in Iraq in years, amid criti- sides of the street had been Islamic State captured an cism for their failure to help largely cleared of rubble, but estimated 1,700 soldiers after businesses struggling to re- many of the stalls and shops seizing Saddam Hussein’s

build in the busy commercial remained empty and charred. KHALID MOHAMMED/ASSOCIATED PRESS hometown of Tikrit in 2014. area. Prime Minister Haider al- A worker clears debris Sunday from a bombing in Baghdad, passing an image of one of the victims. The soldiers were trying to The July 3 truck bombing Abadi, along with city offi- flee from nearby Camp Spe- struck as streets were packed cials, is responsible for the re- scrutiny of the capital’s secu- structure, Mayor Alwach said. new Kia sedan to come up icher, a former U.S. base just with revelers breaking fast construction effort. Yet he was rity procedures, which at the Mr. Abadi has said the with money to rebuild. outside the northern city. during the Muslim holy month heckled when he visited the time included widespread use buildings will be rehabilitated “I turned from a rich per- Shortly after taking Tikrit, of Ramadan and was claimed bombing site weeks ago as the of fake bomb detectors long by the end of the year. son to a poor person,” he said, the group posted graphic im- by Islamic State militants. The terrorist act in the heart of mocked by locals. On Saturday, Hussein gesturing to his front window. ages of gunmen shooting the extremist group regularly the city has rekindled public Dozens of workers loaded Hamza stocked the shelves of “This piece of glass alone is men after forcing them to lie stages suicide attacks across anger toward him. dump trucks on Saturday at his clothing store, which was $700!” The blast cost him his facedown in a shallow ditch. the capital, a return to more Mr. Abadi has faced pro- the charred shopping center. destroyed in the attack. He life savings, he said. “But life The Speicher massacre guerrilla-style tactics as it tests calling for changes that They removed hundreds of has been renovating it for the has to go on.” sparked outrage across Iraq loses ground on the battle- include greater security in banners festooning buildings past month, hoping to reopen He now must support his and partially fueled the mobi- field. The explosion and ensu- Baghdad. The bombing raised there in commemoration of as quickly as possible. daughter and her children, Mr. lization of Shiite militias in ing fire killed nearly 300 peo- questions about his ability to the dead. Engineers were Mr. Hamza said that after Hamza added, pointing to a the fight against Islamic ple and injured hundreds, Iraqi offer protection in the nation’s working to ensure the sound- the bombing he was forced to picture of his son-in-law, who State, a Sunni extremist officials said. largest city. It also renewed ness of the remaining infra- sell his wife’s jewelry and his was killed in the attack. group.

Sirte is Islamic State’s final gets inside Gaza. No injuries TURKEY World bastion in the country, and Lib- were reported on either side. yan troops have been forcing the The Israeli military said the Hundreds Protest Watch militants into ever-smaller bits of rocket landed in a residential area LGBT Activist’s Death territory there, backed by U.S. next to a house in the southern Demonstrators gathered in airstrikes. Islamic State has often border town of Sderot, a frequent central Istanbul to protest the struck back with suicide attacks. target of Palestinian rocket fire. rape and killing of a transgender Libya descended into chaos Shortly afterward, the mili- woman and LGBT activist. following the 2011 ouster and tary said, Israeli aircraft and Hundreds, including opposi- LIBYA killing of dictator Moammar tanks targeted two posts be- tion lawmakers, attended the Gadhafi, and has been split be- longing to the Hamas militant rally on Sunday, holding signs Government Troops tween rival parliaments and gov- group in northern Gaza. Hamas and chanting slogans for 22- Killed in Sirte Fight ernments based in Tripoli and officials said a training camp in year-old Hande Kader, whose Forces loyal to the United Na- the country’s east. northern Gaza was targeted, but body was found this month. Me- tions-backed government said —Associated Press the camp had been evacuated dia reports said the body was they lost 10 troops in fighting after the rocket was fired. burned beyond recognition. with Islamic State militants in ISRAEL Israel and Hamas fought a In July, Turkish gay-rights or- the remaining neighborhoods war in 2014. Since then, a cease- ganization Kaos GL reported that they occupy in the city of Sirte. Palestinian Rocket fire has largely held. But mili- the decapitated body of a gay Syr- They said Sunday’s fighting Draws Reprisals tants in Gaza occasionally launch ian refugee, Muhammed Wisam had also left 17 of their forces Palestinian militants in the rockets toward Israel. Israel Sankari, had been found in Istanbul. wounded, and that they had Gaza Strip fired a rocket into holds Hamas, which controls Homosexuality is legal in Tur-

made advances in the area that southern Israel, prompting the Gaza, responsible for all attacks key but rights groups say hate EMILIO MORENATTI/ASSOCIATED PRESS left an undetermined number of Israeli military to respond with emanating from the territory. crimes against the community are ALL ADRIFT: Migrants from Somalia and Eritrea fled Libya on casualties among Islamic State. airstrikes and tank fire on tar- —Associated Press common. —Associated Press board a wooden boat in the Mediterranean Sea on Sunday.

THE WALL STREET JOURNAL. **** Monday, August 22, 2016 | A7 WORLD NEWS Chileans Rally for Brazil’sFocusShiftstoTrial

New Pension System BY PAULO TREVISANI BRASÍLIA—Now that the BY RYAN DUBE 15%, proposed changes this Olympics are done, Brazil’s at- month to raise pensions. tention returns to its long- Thousands of Chileans took Under the current system, running political drama as the to the streets nationwide on which requires workers to country’s Senate starts the fi- Sunday to demand a disman- contribute 10% of their sala- nal phase of suspended Presi- tling of a private pension sys- ries to accounts managed by dent Dilma Rousseff’s im- tem criticized for providing a private company, Chilean peachment trial—a proceeding retirees with low payouts. men receive on average 38% widely expected to perma- The backlash against the of their pre-retirement earn- nently remove her from power. system follows years of acco- ings, while women receive During the trial, set to be- lades by multilateral organiza- 33%, some of the lowest rates gin Thursday, Ms. Rousseff tions such as the World Bank, among countries belonging to will face charges that she ille- which held up Chile’s pioneer- the Organization for Eco- gally masked the country’s ing use of individual savings nomic Cooperation and De- growing budget deficit accounts as an alternative for velopment. through accounting tricks. She countries with state pensions “We just spend on food. We has denied the charges and considered unsustainable. don’t buy clothes, we don’t said the accounting was law- But 35 years since it was buy shoes,” said Nora Guer- ful. A conviction by at least implemented by Chile’s right- rero, a 71-year-old retiree who two-thirds of the 81 senators wing military dictatorship, lives with her husband in the would definitively oust her

critics say it hasn’t delivered southern city of Temuco. from the presidency and allow ANDRESSA ANHOLETE/AGENCE FRANCE-PRESSE/GETTY IMAGES on promises. Chilean opinion Ms. Bachelet has said the interim President Michel Te- Suspended President Dilma Rousseff met with foreign correspondents in Brasília last week. pollster Cadem found that government would strengthen mer to serve out her term, 84% of Chileans want an over- a program that subsidizes which lasts until late 2018. Washington-based consult- harder for [Ms. Rousseff’s] de- paign funding was legal. haul, while a University of pensions for about 1.3 million The trial caps a legal pro- ing firm Eurasia puts the odds fense,” said André Cesar, a po- The impeachment is the cli- Santiago survey said 61% want retirees who were unable to cess that has sharply divided of a conviction at 90%. “There litical scientist in Brasília. max of the political battle trig- to return to a public pension save enough during their ca- residents of the world’s ninth- is a possibility, but it won’t be Mr. Temer may face his gered by the Petrobras scan- system. reers. Within the next 10 largest economy. Polls show a easy,” said Sen. Humberto own legal troubles. Brazil’s dal. Brazil’s major parties and “A better Chile is possible years, employers would need slight majority of voters want Costa, a key figure in Ms. electoral court is looking into dozens of politicians and lead- only if we recover the pension to contribute an additional 5% Ms. Rousseff out permanently Rousseff’s Workers’ Party, or allegations that the Rousseff- ing businessmen have been ar- system,” Carolina Espinoza, a on top of the 10% from work- for having presided over an PT. “We will intensify the Temer ticket benefited from il- rested in a graft scheme that protest organizer, told Radio ers, she said. Ms. Bachelet economic downturn and what talks, get [Ms. Rousseff] more legal funds diverted from allegedly skimmed billions of Bio Bio. “This has to end.” also proposed creating a many see as a corrupt admin- in touch with senators who state-controlled oil company dollars from Petrobras. As Demonstrations against the state-owned entity to compete istration. Her supporters, can still flip their votes.” Petróleo Brasileiro SA, or they fought for political sur- model have been some of the with the six private pension meanwhile, say her ouster is In a July survey by opinion Petrobras. The probe could re- vival, politicians turned onto biggest of President Michelle companies. But critics say the tantamount to a coup by right- pollster Datafolha, 58% of re- sult in their 2014 re-election each other, making policy- Bachelet’s two-year adminis- proposals don’t do enough for wingers who want to stop her spondents said they would like being canceled and a new vote making all but impossible. tration. Ms. Bachelet, whose current pensioners struggling government’s social spending senators to vote against her. called. A verdict is likely in the “Measures, actions and re- approval has fallen to a low of to get by. on the poor. With Brazil’s 5,570 townships next several months. forms needed to fight the eco- Ms. Rousseff is expected to all electing new mayors in Oc- Ms. Rousseff and the PT nomic crisis have been take the stand Aug. 29. Sena- tober, lawmakers in Brasília both have said they only used blocked,” Ms. Rousseff com- Old-Age Benefits tors are expected to begin vot- are under pressure to listen to lawful donations. Mr. Temer plained in an open letter to ing after her testimony. voters. “The elections make it has said his share of the cam- senators last week. Net pension-replacement rates, a measure of retirement payouts as a share of pre-retirement income, for OECD countries, 2014

Turkey 104.8% Netherlands 95.7 Irish Officials Probed Over Ticket Scalping Austria 91.6 BY LUCIANA MAGALHAES Hungary 89.6 accommodation in Rio early Last week, Rio police ar- thorized channels is a crime. Sunday, according to a state- rested OCI head Patrick Hickey Rio security officials on Portugal 89.5 TOP FIVE COUNTRIES RIO DE JANEIRO—Brazilian ment on the council’s website. on accusations of ticket scalp- Sunday didn’t answer repeated U.S. 44.8 police on Sunday seized pass- They took possession of the ing, criminal conspiracy and phone calls or an emailed list ports, phones and laptops of officials’ documents and elec- illegal marketing. of questions. Ireland 42.2 an undisclosed number of Irish tronic devices, as well as an Investigators allege the 71- The OCI said it had opened Japan 40.4 Olympic officials as part of an allotment of unused tickets in- year-old Mr. Hickey used his an investigation into the alle- Chile 37.7 for men, 33.1% women investigation into an alleged tended for the family and position to transfer Games gations and that Mr. Hickey, U.K. 28.5 scheme to illegally sell Olym- friends of Irish athletes com- tickets to an unauthorized who “temporarily” stepped

BOTTOM FIVE pic tickets at inflated prices. peting in the Games. seller that marked them up for down after his arrest, would Mexico 28.4% for men, 26.2% women Police raided the Olympic No arrests were made, the huge profits. In Brazil, selling continue to cooperate with au- Source: OECD THE WALL STREET JOURNAL. Council of Ireland’s offices and council said. sports tickets outside the au- thorities.

cord with geopolitical implica- ter fighting a war, the U.S. and PACT tions has raised its stakes. “For Vietnam are becoming closer America’s friends and partners, amid shared concerns over ratifying [the trade pact] is a China’s expansion in the South ContinuedfromPageOne litmus test for your credibil- China Sea, waters Vietnam also to China,” said U.S. Trade Rep- ity,” Singapore Prime Minister claims. This year, the U.S. lifted resentative Michael Froman. Lee Hsien Loong said in Wash- a ban on lethal weapons sales But that argument hasn’t ington this month. Observers to Vietnam. The Communist helped solidify backing in Con- saw Mr. Lee as speaking for the nation got special exceptions gress, where the pact is op- other Asian signatories: Japan, to join the pact. posed by most Democrats and Vietnam, Malaysia and Brunei, “We still hope that Obama now lacks the support of key with Indonesia, South Korea will be able to ratify the deal Republican lawmakers who and others considering it. during his last months,” said championed the TPP and other To be sure, the U.S. is Luong Van Tu, Vietnam’s for- trade pacts for years. Both ma- deeply integrated with Asia mer deputy trade minister. jor presidential candidates also through big trade relationships But no one has more at have attacked the deal. with China and other econo- stake than Shinzō Abe, the Last week, GOP Sen. Pat mies, as well as defense trea- prime minister of Japan, the Toomey, former president of ties with nations such as closest U.S. ally in the region. the Club for Growth, a bastion Mr. Abe made the pact central of free-market economics, to his domestic and foreign came out against the TPP in a The administration strategies—and faced signifi- bid to win working-class voters continues to hold out cant opposition from Japan’s in his Pennsylvania race. powerful farm lobby and other At the same time, Demo- hope for the TPP’s local interests to do it. cratic presidential candidate passage. Mr. Abe’s “Abenomics” plan TAKE THE LEAD Hillary Clinton, who has said to pull the world’s third-largest she opposes the pact in its cur- economy from its long morass rent form, is under increasing Japan, South Korea and the relies on the pact as a driver of pressure from the left to make Philippines. Such U.S. ties to growth and reform. On the in- ON WHAT YOU READ. a clean break with the deal, Asia are unlikely to change, re- ternational stage, the deal is which she supported while gardless of the trade pact’s also key to Mr. Abe’s broader serving as Mr. Obama’s secre- fate, many experts say. strategy to contain China by tary of state. But Asian leaders who spent organizing East Asian nations The U.S. “pivot” to Asia, un- political capital to support the under an umbrella of U.S. eco- veiled in 2011, reflected con- pact will be less likely to do so nomic influence. cern about China’s bid to turn again if it fizzles, experts say. If the TPP fails, “there will Become a WSJ Opinion Leader. economic might into hard Smaller countries that balance be a very negative impact from power in a region with growing relationships with both China the viewpoint of economic se- importance. Tensions have and the U.S. may doubt the U.S. curity,” said Yorizumi Wa- risen, with China testing U.S. and become accommodating to tanabe, a former Japanese Some opinions matter more than others. military dominance by making Beijing. trade official. claims on the South China Sea Take Vietnam, seen as the —William Mauldin, Help shape the Journal with your point of view and protesting a U.S. antimis- pact’s big winner, with an esti- Chieko Tsuneoka sile installation in Korea. mated 11% boost to its econ- and Vu Trong Khanh and you’ll have a chance to win $1,000. The proposed pact, which omy by 2025. Four decades af- contributed to this article. was finalized last year, would cut or reduce some 18,000 tar- iffs for a group of Pacific Rim nations in the Americas, Asia and Oceania—accounting for 40% of the global economy. China, not part of the Trans- TPP at a Glance Pacific deal, is negotiating a COUNTRIES INVOLVED separate Asia pact without the Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, U.S. China is also pledging New Zealand, Peru, Singapore, more regional loans through a U.S. and Vietnam new bank and a $40 billion Silk CHINA not included in the TPP Road fund. but is pushing a separate Many trade experts say the regional trade bloc Obama administration is exag- gerating when it depicts the deal as a make-or-break mo- ment for whether the U.S. or China writes the rules of global SCOPE includes about two-fifths of the global economy trade. The China-backed accord doesn’t create new trade TARIFFS would cut duties over time on some 18,000 products, frameworks: It is a run-of-the from American pork to Japanese cars NO PURCHASE NECESSARY. A PURCHASE WILL NOT INCREASE YOUR CHANCES OF WINNING. OPEN TO LEGAL RESIDENTS OF THE UNITED STATES INCLUDING WASHINGTON, D.C. VOID WHERE PROHIBITED. Promotion ends: 2/5/17. For Official Rules, prize descriptions, odds disclosure and to join, visit mill, tariff-cutting exercise. The www.wsjopinionleaders.com. Sponsor: Dow Jones & Company, Inc., 1211 Avenue of the Americas, New York, NY 10036. 3DJ4033 SERVICES would lower certain barriers on data providers, two pacts aren’t mutually ex- e-commerce and some other services clusive. Asian nations always intended to join both. RULES set standards on labor, the environment and other areas But freighting the TPP ac-

A8 | Monday, August 22, 2016 THE WALL STREET JOURNAL. WORLD NEWS

Climbing Back India's new central bank chief Thai Conflict Bursts to the Surface will have to grapple with a recent pickup in inflation. Annual change in monthly Attacks raise profile of tourism business, which is one consumer prices long-running guerrilla of Thailand’s largest indus- 10% tries. Like Mr. Abuza, Ms. Run- insurgency seeking grawee views the attacks as a means to nudge the Thai gov- 8 independent state ernment into resuming talks in neighboring Malaysia after a 6 BY JAMES HOOKWAY long freeze. That will be difficult. The 4 BANGKOK—A series of Barisan Revolusi Nasional’s deadly bombings has brought lead negotiator effectively tor- fresh attention to a long-sim- pedoed the discussions in 2013 2 mering conflict not far from when he laid out five demands some of Thailand’s most popu- in a video posted on YouTube. 0 lar beaches. In the video the negotiator, 2014 ’15 ’16 For a dozen years, guerrillas Hassan Taib, said insurgents Source: CEIC Data in southern Thailand’s three required Bangkok to recognize THE WALL STREET JOURNAL. Muslim-majority provinces a new independent state en- have waged a brutal campaign compassing the provinces of to break away from the rest of Narathiwat, Yala and Pattani. the mostly Buddhist country which made up much of the IndiaSeeks and revive the old Sultanate of former Sultanate of Patani. Patani. Nearly 7,000 people The Sultanate was annexed by

have been killed in bombings RUNGROJ YONGRIT/EUROPEANthe PRESSPHOTO AGENCY old kingdom of Siam in the Continuity or drive-by shootings, but the A police forensic officer inspected the scene of a bombing in Hua Hin, Thailand, earlier this month. early 20th century. insurgents rarely claim respon- Thai authorities aren’t in sibility; their cloak of secrecy But a growing catalog of fo- explosions in Hua Hin, south- Asia, the insurgents in Thai- much of a compromising mood WithNew makes them all the more terri- rensic and other evidence west of Bangkok, on Aug. 11 land haven’t declared alle- either. Any notion of redraw- fying, according to residents. points to insurgents from the and 12. Mr. Ahama couldn’t be giance to Islamic State and in- ing Thailand’s borders is also Thailand’s military junta Barisan Revolusi Nasional—the reached for comment; police stead focus on more local anathema to the country’s gen- BankHead plays down the scale of con- National Revolutionary officials said it isn’t clear if he objectives. erals, who have set themselves flict so as not to scare off the Front—as most likely behind is still in Thailand. Rungrawee Chalermsripiny- the task of holding Thailand BY GABRIELE PARUSSINI tourists who fuel the country’s blasts this month that killed Investigators have said orat, an independent re- together as 88-year-old King economy, or otherwise desta- four people and wounded doz- there are similarities in the searcher specializing in the Bhumibol Adulyadej languishes MUMBAI—Urjit Patel, ap- bilize the nation as the health ens, security analysts said. construction of the bombs and conflict, said the latest attacks in a hospital with a growing pointed India’s next central of its ailing king worsens. Vet- On Friday, police secured an the improvised explosive de- in Hua Hin, Phuket and else- list of ailments. Many Thais bank chief, spent most of the eran academic Zachary Abuza, arrest warrant for a suspected vices that are typically planted where reflect the insurgents’ are deeply concerned about past three years in the shadow of the National War College in militant named Ahama Lengha by insurgents in southern past record of targeting shop- the instability his death might of charismatic Reserve Bank of Washington, calls it a conspir- whose DNA records matched Thailand. Unlike some other ping and nightlife centers to cause after 70 years on the India Gov. Raghuram Rajan, acy of silence. evidence found at the site of militant groups in Southeast undermine confidence in the throne. but when he spoke he did so with conviction and toed the party line. Mr. Rajan once turned to An Old Leader FacesNew Threats in Zimbabwe Mr. Patel, the deputy governor, at a press conference and asked for help Zimbabwe’s economy is run- ANALYSIS explaining how ning out of cash. Its worst quantitative eas- drought in decades is aggra- ing affects vating financial collapse. The emerging markets. Mr. Patel’s ruling party is riven by infight- answer made headlines. ing. And a marriage counselor “We are in the midst of the turned social-media hero is age of competitive depreciation mobilizing thousands of work- and of beggar-thy-neighbor ers to paralyze the country. monetary policy,” said Mr. Pa- tel. “It brings to mind an old By Gabriele African saying that when ele- Steinhauser in phants fight, the grass suffers.” Johannesburg and Mr. Patel’s strong words Bernard Mpofu in echoed the biases of his boss, Harare, Zimbabwe who has campaigned to raise awareness of how a lack of in- These are just some of the ternational coordination on challenges encircling President monetary policy hurts devel- Robert Mugabe, at 92 years old oping economies. Messrs. Pa- the world’s oldest head of state. tel and Rajan also spoke with He has cracked down on op- one voice when it came to the ponents, dialed up anti-West- need for India to adjust the ern rhetoric and threatened way it sets monetary policy anyone who steps out of line. and looks at inflation. But with protests now Many investors, economists spreading to some of Zimba- and executives breathed a sigh bwe’s rural areas that have of relief after New Delhi an- traditionally been a Mugabe nounced Saturday that Mr. Pa- stronghold, the growing scale tel would become the next RBI of the challenges has governor when Mr. Rajan’s prompted former party offi- term ends Sept. 4. cials, Western diplomats and

political opponents to ques- PHILIMON BULAWAYO/REUTERS tion how much longer the man Zimbabwean antiriot police last week in the capital Harare dispersed protests against the central bank’s plan to reintroduce local currency. Urjit Patel will who led Zimbabwe’s indepen- become India’s dence war—and ruled this Political chaos in Zimbabwe called by Mr. Mawarire shut in future elections and threw within the ZANU-PF party. It central bank southern African nation for 36 would risk unsettling a region much of the capital as workers their weight behind Vice Presi- pits Mr. Mugabe’s 51-year-old chief next years—can stay in power. struggling with the downturn in stayed home and schools closed dent Emmerson Mnangagwa. wife, Grace, and her supporters month, as “What you have is highly commodity prices and China’s for the day. A week later, the The political backlash comes against Mr. Mnangagwa and his Raghuram incendiary conditions in Zim- economic slowdown. pastor’s call for a nationwide as Zimbabwe’s economy is slid- backers. The divisions spilled Rajan exits. babwe.…[It’s] ripe for a power Mr. Mugabe has survived strike led to his arrest. ing toward its biggest crisis into the open at the ZANU-PF grab,” said Charles Laurie, crises by cutting unexpected He was released after thou- since 2009. For the past two headquarters on July 27, when head of Africa at political-risk deals with rivals and ruthlessly sands of supporters held a months, the government has Mr. Mugabe met with war veter- Some had worried the gov- firm Verisk Maplecroft. quelling dissent. “It’s always vigil outside the courthouse been late in paying its military, ans who had expressed loyalty. ernment would try to pick a On Monday, leaders of 18 easy to call the end of Mugabe police and other public employ- In a sometimes-erratic more pliable and political cen- opposition parties—among too early,” Mr. Laurie said. ees, whose wages consume more speech, Mr. Mugabe spelled tral banker for the role. them a former prime minister, But now the president faces Questions mount on than 80% of official spending. out his response to dissenters: “Mr. Patel’s personality is vice president and finance a growing public challenge from how long 92-year- On payday, long lines form at “If you interfere with our poli- different from Mr. Rajan’s, but minister—will meet in Harare a protest movement personified Zimbabwean banks, which have tics you are courting trouble.” the underlying thinking is sim- with the aim of forming a co- by Evan Mawarire, a Pentecos- old Robert Mugabe restricted the amount of cash Mr. Mawarire, the pastor, ilar,” said Shubhada Rao, an alition to challenge Mr. tal pastor who until this year can retain power. that can be withdrawn. The said his movement isn’t back- economist at Yes Bank who Mugabe in the 2018 elections. was doling out relationship ad- central bank said lenders at the ing a candidate to succeed Mr. has known Mr. Patel for close But without a clear constitu- vice to a congregation of 60 end of May had enough dollars Mugabe and he has no plans to 20 years. “The RBI’s mes- tional path for replacing the people in the capital, Harare. and has since left for the U.S., to cover just 4% of deposits. to seek political office. “We sage is unlikely to change.” president before then, it is un- In April, Mr. Mawarire where he says he is meeting Meanwhile, an El Niño-in- know exactly what we don’t Mr. Patel, who, like Mr. Ra- clear what would happen posted a video on Facebook in exiled Zimbabweans and plan- duced drought has left some want,” he said. jan, worked at the Interna- should be die or be forced to which he recorded himself la- ning his next move. four million Zimbabweans, Others, meanwhile, warn tional Monetary Fund, is tak- step aside. menting the downfall of his A few days later, a group of among them 40% of the rural that it is too early to call Mr. ing over as the global Although not formally on the country while dissecting the influential veterans of Zimba- population, with insufficient Mugabe’s demise. “He’s been in environment looks increas- agenda, the recent upheaval is colors of a Zimbabwean flag. bwe’s national liberation war de- food, the U.S. Agency for In- power for 36 years,” said Temba ingly fraught. The U.S. Federal likely to come up at a summit of The video sparked a social- nounced the president’s “dicta- ternational Development said. Mliswa, a former ZANU-PF pro- Reserve is expected to resume southern African leaders in media movement under #This- torial tendencies.” They vowed The economic challenges are vincial chairman. “He’s learned raising interest rates, which Swaziland that starts next week. Flag and on July 6, a “stay away” to no longer support Mr. Mugabe exacerbating a power struggle the art of managing people.” would renew pressure on emerging-market currencies. Mr. Patel also faces a pile of bad debt at India’s govern- OppositionChiefSeeks Ethiopian Medalist Protests His Tribe’s Treatment ment-owned banks. The RBI estimates bad loans in the sys- tem will likely reach 8.5% of ToNullifyZambiaVote total loans next year, up from 7.6% in March. BY NICHOLAS BARIYO Lungu had narrowly won the Mr. Patel’s first big test is election with 50.3% of the vote likely to come in September, KAMPALA, Uganda—Zam- against 48% garnered by Mr. when Indian expatriates start bia’s opposition leader, the de- Hichilema, a wealthy business- to redeem more than $20 bil- clared loser of disputed presi- man, which was sufficient to lion in special foreign-cur- dential elections, began a last- avoid a runoff. Neither Mr. rency bonds issued as a way of ditch effort in the country’s Lungu nor the commission attracting foreign exchange to constitutional court to have commented immediately on support the rupee. India will the vote results overturned, Mr. Hichilema’s allegations, have to pay back most of the citing widespread irregulari- though both earlier last week money by November. ties, officials said Saturday. defended the results as fair. The choice of Mr. Patel sug- Hakainde Hichilema, head More than 150 people have gests the government is look- of the opposition United Party since been arrested in protests ing for policy continuity. It for National Development, said against the results, threaten- also suggests New Delhi’s sur- a “deliberate collusion” be- ing to unsettle one of Africa’s prise decision not to offer Mr. tween Zambia’s Electoral Com- most stable democracies. Rajan a second term was a mission and the ruling Patri- Under a law introduced in statement about his occasional otic Front party to steal his January, the suit means Mr. negative comments about the votes during the counting pro- Lungu’s inauguration can’t

state of India’s economy cess cost him victory. proceed until the court rules OLIVIER MORIN/AGENCE FRANCE-PRESSE/GETTY IMAGES rather than any problems with The commission said last on the matter, according to RESISTANCE: Feyisa Lilesa crossed his arms in a gesture of defiance against Ethiopia’s government his hawkish policy stance. week that President Edgar the president’s office. as he won silver in the Olympic marathon Sunday. He said he would be killed if he returned home.

THE WALL STREET JOURNAL. Monday, August 22, 2016 | A9

With our deepest gratitude. We will miss your leadership, generosity and kindness.

Jay S. Fishman 1952–2016

© 2016 The Travelers Indemnity Company. All rights reserved. Travelers and the Travelers Umbrella logo are registered trademarks of The Travelers Indemnity Company in the U.S. and other countries.

A10 | Monday, August 22, 2016 THE WALL STREET JOURNAL. FROM PAGE ONE

berly-Clark’s workers used the WORK feedback feature in Workday in 2014, and about 25% of the comments were considered ContinuedfromPageOne “constructive,” while the rest that once resisted conflict and were positive or neutral, said fostered a paternalistic cul- Sandy Allred, a senior director ture that inspired devotion on the talent management from its workers. team. Staffers can send feed- The changes mirror what is back to peers or workers above happening inside many large or below them. companies, where “perfor- An earlier, unpopular system mance management” reflects required managers to rank em- the conviction that a sharp- ployees in a nine-box grid ac- ened focus on creating a high- cording to strict percentages, performing workforce is a vi- and then put the lowest per- tal tool to generate revenue formers on mandatory perfor- and profit. mance improvement plans, of- Performance management tenthefirststeptoa shifts companies away from termination. In 2013, the com- backward-looking, once-a-year pany switched to the current, reviews framed largely as com- more-flexible system, which pliance requirements—a paper uses four ratings, with percent- trail for potential job cuts and ages that are suggested for salary decisions—to a process each rating. that is real-time, continuous Around that time the com- and focused on helping people pany trimmed some salaries meet ambitious goals, or move and put more workers on a bo- out of the company faster. nus plan, to tie pay more closely The last recession led many to performance. employers to rethink the Dave Bernd, a 33-year vet- nearly automatic merit raises eran whose father was a senior they had been doling out, executive at the company, said forcing them to do a better that when he walked on the

job identifying high and low KIMBERLY-CLARK Roswell, Ga., corporate campus performers when giving raises Kimberly-Clark engineers in 1948 worked on product development at a company mill in Neenah, Wis. The company was founded in 1872. a few months ago he found the and bonuses. Millennial work- old warmth missing. “It doesn’t ers, meanwhile, demand more feel like the family it once was.” feedback, more coaching and Focusing on Worker Performance Management Payoff The former manufacturing a stronger sense of their ca- In a study of 32,000 U.S. manufacturing plants, researchers found director, who retired in 2013, reer path. Kimberly-Clark Corp. isn’t courages managers to conduct that plants where managers closely monitored performance and said a decade ago, “whether Companies spend $14 billion the only company to adopt new a monthly “reflection” on every rewarded or disciplined employees accordingly were more productive you knew anyone or not,” em- a year on products to help “performance management” direct report, answering five and profitable. ployees said hello in the park- manage employees, including strategies to try to make its questions that include “Given ing lot and engaged in camara- human-resources software workforce more efficient. his/her performance, would you Ratio of revenue over inputs* Plant operating profit derie typical of a smaller from Workday Inc., SAP SE’s In the past year, firms in- assign this associate to in- 200 $20 million company. Even so, he said he SuccessFactors and Corner- cluding Accenture PLC and creased scale, scope, and re- approves of the recent manage- stone onDemand Inc., with General Electric Co. have sponsibilities?” and “Is this as- ment changes. about $2 billion of that dedi- dropped annual performance sociate at risk for low 150 15 One of the firm’s core values cated to performance manage- reviews in favor of more con- performance?” is still “caring,” said Ms. Got- ment, according to human-re- tinuous oversight and feedback Adobe Systems Inc., which tung, who joined Kimberly- sources advisers Bersin by from managers, all meant to was one of the first big com- 100 10 Clark in 1981. “When I started Deloitte. Those systems let drive constant improvement. panies to home in on perfor- with the company, we were very managers track workers’ prog- Coca-Cola Co. in June ap- mance management, conflict-averse, very oriented ress via dashboards that dis- proved pushing its new perfor- scrapped its annual review in 50 5 towards consensus,” she said. play their goals, accomplish- mance-management process favor of frequent “check-ins” “And now it’s ‘I care enough ments, attendance, peer from the pilot stage to a global in 2012. about you to tell you the feedback and other data. rollout. The new system en- —Lauren Weber truth.’ ” 0 0 Executives’ use of phrases One former employee said he like “performance culture” in who became chief in 2002. cutting, growth in emerging 110Worsttobest 110Worsttobest was initially glad that the com- conference calls with analysts “But we didn’t have the sup- markets and a generous divi- Management score decile Management score decile pany was identifying those who and investors has doubled in porting processes to make that dend payout. *Inputs includes labor, capital and materials weren’t pulling their weight. the past five years, according sustainable.” Source: Nicholas Bloom, Stanford University, and co-authors THE WALL STREET JOURNAL. Then, after earning top reviews to a review of transcripts in the In 2008, with the company’s over his decadeslong career, he Factiva news database. Firms shares stagnant, few innova- Big cuts “It’s certainly more challeng- faculty of Georgia Tech. “I saw said he was given a low rating that set goals and hold workers tions in the pipeline and a be- Since 2009 Kimberly-Clark ing” for employees, said Mr. it as a good move in that we and placed on a performance- accountable “clearly outper- lief that costs were bloated, the has laid off around 2,900 Herbert, the retired sales direc- could get some new thinking improvement plan after missing form,” said Nicholas Bloom, an CEO added human-resources mostly salaried workers world- tor. “If you really don’t have the and innovation into our pipe- a project deadline. After that, economist at Stanford Univer- executives to the team putting wide, some of the first big cuts mettle, you’re asked to get on line,” he said. “no one would talk to me” sity and co-author of a recent together the firm’s long-term in the company’s 144-year his- with your life’s work [else- Mr. Falk, the CEO, reviews about other positions, he said. paper that used Census data to business plan for the first time. tory. It currently employs where].” 100 senior managers’ perfor- He said the situation eventu- examine more than 32,000 U.S. Holding workers close about 43,000. In 2015, Kimberly-Clark re- mance plans every year to ally improved with a new super- manufacturing plants. He said through good times and bad is Remaining employees are tained 95% of its top perform- make sure their goals are ambi- visor, but he still decided to they have faster growth, higher “not sustainable” any more, expected to work “smarter” and ers. Among the employees tious and reflect company pri- leave the company last year. profitability and are less likely said Liz Gottung, the com- meet regularly raised targets. whose work was rated “unac- orities. Managers are in- In that instance, “did the sys- to go bankrupt. pany’s human-resources chief. “We have to routinely shuffle ceptable” or “inconsistent,” structed to begin every meeting tem work or not? I don’t know,” Some academics say con- “If you look at when we started the resources and say, what’s 44% left the company volun- with a story about how some- said Ms. Gottung. With thou- stant monitoring can feel intru- implementing the big pieces of the most important thing we tarily or were let go. Ms. Got- one demonstrated one of the sands of performance reviews sive and threatening to work- the company’s people strategy, need to do today, this week, tung said she is “pretty six behaviors the company pro- happening every year, “I wish ers, especially those who value when you map that to our this month, to drive this objec- pleased” that low-performer motes, such as “build trust” or we had 100% satisfaction, but stability. But human-resources stock price and our business tive?” said Stephanie Martin, turnover has been rising. “think customer.” that’s unrealistic. Overall, our experts largely agree that the results, you can see the clear an engineer who analyzes new Retired sales manager employees think this is a fair traditional review process is a correlation.” product ideas. Jeanne Sanders remembers and equitable process.” waste of time and needs an Shares closed at a high of Using the Workday tool, executives boasting about the Training sessions Basma Osman a 27-year-old overhaul. $138.13 in April, and its quar- Kimberly-Clark’s salaried em- firm’s low turnover when she Regular “culture of account- product-development engineer, The shift to a performance terly dividend, which it has ployees set goals and report interviewed at Kimberly-Clark ability” sessions train employ- considers herself a beneficiary focus, which requires consis- raised every year for more than their progress, record accom- in 1987. Stories are told about ees in giving and receiving diffi- of the new system. Tapped early tent oversight and sometimes four decades, hit a high of 92 plishments or mistakes, and so- how during the Depression cult feedback. When a colleague in her career as a high-potential uncomfortable feedback, can be cents a share in February. The licit and send feedback. (Hourly and in more-recent production suggests improvements, “the employee, she was working on bumpy. share price has more than dou- workers don’t use the system.) interruptions, mill managers proper response was ‘thank you health and wellness products At Kimberly-Clark, CEO Tom bled since 2008. The system collects and ar- reconfigured shifts to avoid for the feedback,’ not defensive- but told her manager she was Falk—himself a 33-year vet- Behind-the-scenes changes chives feedback, which can be layoffs. ness,” Mr. Luettgen said. Em- interested in industrial safety. eran—pushed the Dallas-based to human-resources practices seen by employees’ managers. It These days, leadership has ployees also practice reinforcing He soon asked her to oversee a company onto its new course. are largely invisible to analysts also holds data on staffers’ communicated to employees positive behaviors, such as $30 million project in that area. “We all talk about how having and investors. Analysts attri- strengths and development that turnover is a good thing, praising a colleague who had “I was terrified,” she said, but the best team is the most im- bute Kimberly-Clark’s rising needs, their performance rat- said Chris Luettgen, a senior re- given up a weekend to solve a she was also grateful that her portant difference-maker in stock price to declining com- ings and the risk they might search manager who left in customer complaint. manager “understood what I your results,” said Mr. Falk, modity prices, aggressive cost- leave the company. 2014 to join the engineering More than 10,000 of Kim- wanted and what I’m good at.”

gling heap. mother, cheered from behind SPORTS “Fishing is a pretty laid- cardboard masks of his square- back sport,” he said. jawed face. When the an- A yen for inner-peace nouncer declared him this ContinuedfromPageOne drove Connor Watkins, 21, to year’s champion, fans broke swimming, football—were once the climbing team at Colorado down the gate separating spec- seen as highly competitive State University. Mr. Watkins, tators from flying wood chips rites of passage. Today’s com- who ran track in high school, to congratulate him. petitors are finding glory in intended to restrict his com- Northern Arizona Univer- sports that are, to put it petitive bent to biomedical sity, in the erstwhile logging mildly, a little more idiosyn- and electrical-engineering town of Flagstaff, has for de- cratic, including ultimate Fris- classes until he fell for a cades had a mascot named bee, rock climbing and fishing. sport that tests his mind and Louie the Lumberjack. But log- Part of the appeal: little pre- his patience. ging contests were long ab- requisite talent and less on- “I like how climbing is a sent until a few years ago, field aggression. mental game,” he said. when forestry student Sam Qxhna Titcomb never shared Top men’s football and bas- Dilettoso and peers began the winner-take-all attitude of ketball programs last year splitting logs and practicing girls on her soccer teams brought over $6 billion in reve- log rolling on a synthetic growing up in Seattle. nue from ticket sales and tele- trunk in the campus pool. But she liked what she calls vision rights to some of the na- Now, to woo more recruits,

the “higher ideal” of ultimate KELSEY GEE/THE WALLtion’s STREET JOURNAL colleges, according to they post a team member be- Frisbee, which she played for College players competed in the ‘standing block chop’ race at the national championships in July. Ryan Brewer, assistant profes- hind the end zone at Lumber- the club team at Tufts Univer- sor of finance at Indiana Uni- jack football games to push a sity all four years she pursued members of the ultimate Fris- tial players don’t need any ex- which won the most tourna- versity-Purdue University Co- chain saw through a Ponderosa a major in international rela- bee team now have something perience prior to joining,” said ments among the 281 colleges lumbus. pine log after touchdowns. tions. Ms. Titcomb was at- approaching superjock status. Mr. Sears, 21, who played that now compete. In some 20 There’s no cash cow college “It’s pretty crazy to see how tracted to the collegiality ulti- With their gray pullovers em- three varsity sports in high contests last season, Crimson tournament for broomball. But excited people get just for a mate Frisbee players must blazoned with the team’s logo school. “I love being a part of Tide students, who are more Germany-based chain saw slice of wood,” Mr. Dilettoso maintain with their opponents, of two elephants intertwined a team again.” likely to be known for their maker Stihl Inc. has generated said. because unlike football and in a yin and yang, they’re easy Broomball hasn’t protected school’s gridiron prowess, some buzz around its annual Emmanuel Butler, a 19-year- basketball players, they don’t to spot. him from peril. Two years ago, consistently caught the heavi- college timbersports champi- old NAU wide receiver, was rely on referees to mediate Trent Sears traded lacrosse Mr. Sears fell on the ice and est fish. onship, which took place this shocked when he arrived on their disputes. for broomball after a head in- broke his back, though he has “Friends know me as the year in suburban Chicago. campus two years ago to find “You always see people jury. Now he’s president of a since recovered. This Spring, guy who fishes all the time, It capped a series of nation- lumberjacks as dedicated to cheering for and high-fiving champion-caliber club team at his team finished second in the and that’s kind of true,” said wide meets between students their sport as his fellow foot- both their teammates and op- the University of Nebraska, national broomball champion- John Davis, 22, the team cap- from more than 60 colleges ball players. He admires them ponents; that just doesn’t hap- teaching teammates with little ship, losing out to Ohio State tain and a marketing major who compete to chop 16-inch for honing their less-tradi- pen in other sports,” said 23- athletic background how to University. who arranged his class sched- thick logs as fast as possible. tional athletic acumen. year-old Ms. Titcomb, who totter across an ice rink in Sporting outfitter Cabela’s ule to allow him to fish at least Swinging his $600 ax, Mr. “For people God didn’t started an organization that thick boots and sweep a ball Inc. this year awarded its cov- three days a week. He says the Adams split two logs and two grant with football talent, but promotes the sport among into a net. eted “school of the year” title routine is pure pleasure, an at- huge wooden blocks in slivers blessed them with another tal- girls after graduating last year. “We definitely sell our- to the University of Alabama’s titude that he credits for push- of a second less than his com- ent, even logging is a great al- At Tufts, more than 150 selves on the fact that poten- 30-member bass fishing team, ing him to the top of the an- petitors. Fans, including his ternative,” he said.

THE WALL STREET JOURNAL. Monday, August 22, 2016 | A11 OPINION

Humans: Unsafe at Any Speed BOOKSHELF | By Michael O’Donnell “If some- “The appropriate first- but for the wrong reason. He allowing new technologies Exonerating one had mover unit of innovation is blamed manufacturers, but the and business models to told you not the car, or even the car chief reason cars are unsafe is develop by default, with regu- 10 years company,” writes innovation their drivers. Six million acci- lations following as needed. ago— consultant Chunka Mui in dents a year in the U.S. result This approach explains the Hitler’s Composer even five Strategy+Business. “It is the in 35,000 deaths and two success of the internet, where INFORMATION years nation.” Singapore’s govern- million injuries. More than websites and services were AGE ago— ment has invited developers 90% are caused by human launched without having to My Life With Wagner By L. Gordon that a of self-driving cars to relocate error. Google and Ford argue ask bureaucrats for permis- By Christian Thielemann Crovitz major to the island nation to avoid autonomous cars are safer sion until the Obama adminis- Ameri- what he called “the tangled than partially self-driving cars tration imposed regulations (Pegasus, 267 pages, $27.95) can car web of competition, policy that rely on drivers taking on prices and practices. company would announce the fights, regulatory hurdles and over occasionally. Autonomous Transportation Secretary hosts have always haunted Bayreuth. Years ago, mass production of a vehicle entrenched interests govern- vehicles would also give new Anthony Foxx instead recently G while conducting at the Festival Theater in the cen- with no steering wheel, you ing the pace of driverless-car mobility options to people confirmed the worst instinct tral German village, Christian Thielemann occasion- would have said they were development and deployment who can’t drive because of age of regulators by signaling an ally seemed to hear from one. A phone in the orchestra pit crazy.” With these words, Ford in the U.S.” or disability. end to open innovation for would signal an incoming call with a blinking light, CEO Mark Fields hopes to The industry is looking for self-driving cars. “I’ve been catching Mr. Thielemann’s eye. He would pick it up with wave regulators out of the way ways to get people comfort- encouraging our team to one hand and continue conducting with the other. “Herr of fully self-driving cars. Regulators will either able with the idea. Uber think about . . . the extent to Wagner says it’s too slow,” he would be told, or “Herr Ford announced last week announced last week that ran- which we should encourage Wagner says it’s too loud.” Sometimes Herr Wagner him- its fully autonomous cars will let self-driving cars domly selected passengers in pre-market-approval steps,” self was on the line. Not Richard Wagner, of course, but his be on the road by 2021. This on U.S. roads or cede Pittsburgh will get free rides he said at an industry confer- intimidating grandson, Wolfgang Wagner, who sternly makes Ford the first tradi- in exchange for agreeing to be ence in San Francisco last guarded Bayreuth’s legacy for nearly 60 years. Wolfgang’s tional auto maker to join the testing to others. driven by a self-driving car. month. “That would require credo for the theater his grandfather built was both formi- Google in focusing on cars that An engineer will still sit at industry and the department dable and pure: “Art reigns here.” can’t be driven by humans. the wheel, with a co-pilot to to be more in sync and more Mr. Thielemann makes that credo his own in “My Life The combined influence of Google has armed itself for monitor the performance of rigorous on the front end of With Wagner.” To him it means not merely putting the mu- Google plus Ford might just be its regulatory battles by hiring the software. CEO Travis Ka- development and testing.” sic first but also bringing to enough to outpace regulators, four former top regulators lanick sees a day when, with- Mr. Foxx’s regulatory ap- rest the notion that Wag- whose instinct is to ban any- from the National Highway out the expense of a driver, proach follows the traditional ner’s troubling political his- thing they don’t fully under- Traffic Safety Administration, “the cost of taking an Uber “precautionary principle” un- tory should figure in con- stand. including a former head. Reu- anywhere becomes cheaper der which bureaucrats pro- temporary artistic The prospect of mass-pro- ters reported that when than owning a vehicle.” hibit new innovations until conversation. “Once Tristan ducing cars without steering Google was disappointed by The Obama administration their developers can prove begins,” he writes, “nothing wheels or pedals means U.S. draft legislation in California is long overdue on its pledge them safe. It stifles experi- else matters. Music wins the regulators will either allow that would require self-driv- to issue new regulations mentation by curtailing inno- day.” The music director at these innovations on Ameri- ing cars to have backup steer- allowing innovation. Car com- vations too soon. Bayreuth since 2015, Mr. can roads or cede to Europe ing wheels and pedals, it panies hope regulators will Any “pre-market-approval Thielemann is an unapologetic and Asia the testing grounds headed to Texas. There, let innovation proceed to see steps” of the kind the Obama admirer of Wagner’s operas, for self-driving technologies. “Google executives made no how well technology can administration now threatens from “Rienzi” to the “Ring,” By investing in autonomous bones about wanting regula- develop safe self-driving cars, would give bureaucrats the finding in them the ultimate vehicles, Ford and Google are tions more accommodating instead of banning technolo- power to pick which technolo- source of musical expression. presuming regulators will than California’s.” Austin ap- gies before their potential is gies can develop and which The author’s penchant for have to allow the new tech- proved the cars in exchange known. are banned. If that happens, controversy precedes him. In nologies, which are develop- for assurances on safety and Google and Ford need the winner in the race to the 2000 Mr. Thielemann was obliquely ing faster even than optimists liability. “permissionless innovation,” next revolution in transporta- accused of using an anti-Semitic slur against the imagined when Google started When Ralph Nader called a concept popularized by tion is likelier to be Singa- Israeli conductor Daniel Barenboim, an accusation that he working on self-driving cars cars “unsafe at any speed,” he George Mason University’s pore than Detroit or Silicon denied. Three years before he had been compelled to de- in 2009. turns out to have been right— Adam Thierer, which means Valley. fend his decision to present a work by Hans Pfitzner, a Hit- ler sympathizer, at Covent Garden in London. Last year Mr. Thielemann made provocative comments sympathetic to the far-right Pegida movement, whose leader was recently Michigan’s Lessons for Ontario found guilty by a German court of inciting hatred by calling Muslim asylum seekers “cattle” and “trash.” “It’s wonder- Ontario and Michigan are apt the Great Recession, Michi- Cato Institute’s Dan Ikenson. It is well that such controversy may bring readers to ful to be back because both have traditionally gan’s growth has been faster Three major reforms under “My Life With Wagner,” because the book itself won’t. It is in Michigan,” large manufacturing bases and than Ontario’s despite the Gov. Snyder have changed the a mess. It starts out as a memoir but soon begins to Hillary Clinton have struggled with challenges province’s significantly faster environment for entrepre- wander. There are discussions of previous Bayreuth said as she to growth under the burden of population growth. In 2013 neurship. First, in March 2013 conductors and a few stabs at biography. The final 100 opened an too much government. Michigan GDP grew 2.8% while Michigan became the 24th pages offer chapters on each of Wagner’s operas, with AMERICAS Aug.11eco- As the Fraser report notes, Ontario grew only 1.3%. “right to work” (RTW) state, lengthy plot descriptions and other forms of padding. By Mary nomic speech Michigan’s economy dramati- Central planners claim that which means that unions can- Throughout, Mr. Thielemann’s brash personality is on Anastasia in the Detroit cally underperformed the U.S. Michigan recovered because not force nonunion members display. On the first page he mentions that he has perfect O’Grady suburb of average throughout the early- of the federal government’s to pay union dues. The report pitch, and on the second he writes, “Fortunately my talent Warren. Then, and mid-2000s. In the period Troubled Asset Relief Program cites data from 2001-13 on was discovered early.” His rhapsodies to Bayreuth are moist without a 2000-07, for example, while (TARP) for the auto industry states that adopted RTW leg- indeed: “It is where I learned to domesticate my heart.” He trace of irony, she added: “You real U.S. gross domestic prod- and its program known as islation before 2001. It shows, shows a striking disregard for operatic directors. If they do can really feel the energy and uct grew annually, on average, on average, higher private not read music, he says, “it is pointless to discuss anything dynamism that is driving this at 2.5%, Michigan’s GDP grew nonfarm employment growth, with them.” As for singers, if they ruin their voices trying state’s comeback.” at just 0.2%. From 2008-10, Pro-growth reforms economic output and real per- to shout over his orchestra, “it is their own fault.” Michigan is rising from the annual Michigan GDP con- sonal incomes. The causal link ashes, but no thanks to Demo- tracted 2.8% versus the U.S. under Republican between RTW and these out- crats. The turnaround has average of 0.4%. But from Gov. Rick Snyder comes has not been proven. When asked how he can conduct the opera ‘Die been led by Republican Gov. 2011-14 Michigan annually But Michigan previously lost a Meistersinger’—a work performed at Nazi Party Rick Snyder, who took office outperformed the U.S. average have rescued the state. lot of investment to RTW in 2011 and implemented a (2.1% vs. 1.9%). states and Michigan RTW co- rallies—Thielemann blithely writes, ‘very easily.’ number of pro-growth re- The recovery is all the more incides with a return of inves- forms. Those policies are the impressive considering that “cash for clunkers.” It is true tor interest in the state. opposite of the tax-and-spend- Michigan was the only U.S. that GM, Chrysler and other A second Snyder reform, in Mr. Thielemann describes Wagner’s notorious anti- and-hyperregulate agenda that state to lose net population in automotive companies were January 2012, lowered and Semitism and his appropriation by the Nazis, but he candidate Clinton wants to the 2000s, according to the beneficiaries of TARP loans simplified corporate taxes. A believes that the effort to tar Wagner with the swastika is impose from Washington. report. From 2003-10 Michi- and that Ford received a sepa- third reform that year cut “simple dogma” and “political correctness.” The music Last week Mrs. Clinton gan’s average unemployment rate $5.9 billion loan. But state spending and employ- must be judged on its own merits, he says. Mr. Thielemann showed again that she has no rate was 1.7 percentage points those programs, at best, only ment, holding down public proceeds to make his case with chronology: Wagner died clue what was behind Michi- higher than the U.S. average. “prevented catastrophe,” the debt. Gov. Snyder grew the six years before Hitler was born and therefore has an gan’s near-death experience “From 2000 to 2011,” the report finds. state’s “rainy day fund,” which airtight alibi. When asked how he can conduct “Die when she named former Mich- report finds, “Michigan under- They cannot explain the had evaporated during Gov. Meistersinger” in Bayreuth—it was performed there before igan Gov. Jennifer Granholm— performed the U.S. in private- state’s faster economic and job Granholm’s tenure. Hitler and at Nazi Party rallies—Mr. Thielemann blithely who led the state’s economic sector job growth in most growth in subsequent years, Ontario hasn’t had any re- writes, “very easily.” He asserts that “it is not an artist’s descent from 2003-10—to her years.” It notes that the state and could have had the oppo- motely comparable labor, tax job to let his view of a work be dictated and distorted by transition team. “was losing private sector jobs site effect. Cash for clunkers, or spending reform. Its net its previous performance history.” A new report from Canada’s in absolute terms—meaning for example, which subsidized debt has doubled since 2007 The intersection of art and politics is more complex than Fraser Institute, “Ontario vs. the growth rate was negative— auto purchases, was “designed and its economy has sputtered Mr. Thielemann acknowledges. Does Shostakovich’s music Michigan: Policy Lessons from even in 2006 and 2007.” It was to pull sales forward” and while pro-growth Michigan is lack merit because some of it was propaganda made to the Wolverine State,” describes not until 2012 that a “strong probably drew from future rediscovering its mojo. This is order for Stalin? Of course not—and of course Wagner’s Michigan’s reversal of misfor- rebound” in private-sector growth. It is also worth instructive for the neighbors music does not lack intrinsic value because of its history. tune since 2011. Whereas the employment materialized. considering the possibility to the north and for Ameri- Some of it is glorious, like the prelude to “Parsifal.” But Ontario economy once out- In 2006 and 2007 Michi- that without bailout protec- cans. Mrs. Clinton’s big-gov- this does not mean that avoiding Wagner is mere political paced Michigan, the tables are gan’s economy contracted tion big auto companies may ernment solutions are failed correctness to be sneered at like one of Mr. Thielemann’s now turned and the turnabout while Ontario’s grew. Michigan have “emerged on a stronger left-wing populism. It didn’t singers. Wagner wrote the soundtrack to the most coincides with key Michigan lost more ground than Ontario footing” from normal bank- work in Michigan and it won’t loathsome genocidal war machine in human history. On tax, spending and labor re- in the recession years of 2008 ruptcy proceedings, the report work for the nation. that basis alone his music must always bear an asterisk. forms. Comparisons between and 2009. Yet since the end of notes, citing the work of the Write to O’[email protected]. Some, like Leonard Bernstein, have championed Wagner’s music while openly grappling with the composer’s scarred past. Others turn away from his music altogether because its associations are too painful. Wagner is not generally Is That Libidinous Latina Taco Gay or Bi? performed in Israel. A right-wing German has no business calling this reluctance into question. By Bari Weiss leap out of his plastic packag- the Social Justice Warriors writer to cover a story about a That would be the case even if Hitler had appropriated ing to get inside a soft bun, over at a queer website called caricature of a Latina.” Wagner’s music for ends that were wholly unforeseeable. or my grandparents’ the flamboyant fruit shaking Autostraddle. The site ran a It sounds as if she would But they were not. In an essay called “Judaism in Music,” F generation, moral cour- their jazz hands, and...you lukewarm review from a free- gladly commit seppuku, if only Wagner purported to describe the character of the Jews age meant storming get the picture. lancer who praised the movie that didn’t require the sin of with words like “repulsive” and “repellent,” referred to Omaha Beach. For my parents, Some critics interpreted for including a gay character— cultural appropriation: “I am them as less than human, and concluded that their curse it was marching for civil this tale of anthropomorphic a libidinous lesbian Latina taco wholly sorry for the pain and could be lifted only by their destruction. The Nazis did ex- rights. For mine, it’s defending groceries awakening to the voiced by Salma Hayek. The anger I caused you,” she wrote. actly what Wagner said ought to be done, and the “Ride of a movie featuring an orgy truth—humans are not gods— next day the site took down “I offer you no justification. I the Valkyries” inspired their busy hands. Wagner smeared between a taco, a pita, a bagel, as a parable about religion or her post and published a was blinded by my own white- the reputation of his contemporary Felix Mendelssohn, a a hot dog and a bun. enlightenment. Meh. I think 2,600-word apology illustrating ness existing inside a system prominent Jewish composer whom he hated and envied. “Sausage Party” is a new it’s just fun. in supernova tones the Maoist of white supremacy. I must do The act of character assassination prefigured the Nazis’ own comedy produced by Seth Ro- Silly me. This naive cisgen- mind-set of the hard left. better. I will do better.” targeting of Jewish artists and intellectuals decades later. gen, the Canadian made fa- dered white woman forgot we Editor Heather Hogan ex- It’s the sort of apology one Mr. Thielemann acknowledges these points and says that mous by flicks like “Knocked now live in a culture where plained that she heard from might hear from a prisoner in he regrets them but insists that we let bygones be bygones Up.” It’s squarely in the tradi- fun is highly problematic. readers “who were upset that North Korea, the country Seth once the curtain rises. Yet he fatally undercuts his own tion of other R-rated animated At Salon, a writer was in- we labeled the taco a lesbian Rogen depicted in his 2014 argument. When discussing the family-like atmosphere of masterpieces: “Team America: censed by Bill Hader’s charac- when it seems more likely that blockbuster, “The Interview.” musicians at Bayreuth, he writes that the community must World Police” and “South Park: ter, Firewater, because “alco- she was bisexual.” Other read- When young American blog- share a personal and artistic sensibility: “What use is an Bigger, Longer & Uncut.” holism is a major epidemic in ers “questioned the consent of gers display less tolerance and unpleasant bastard to me even if he plays the oboe Which is why so many Native communities.” A Slate the sexual encounter between humor than Kim Jong Un, we divinely?” Just so: Humanity trumps art. What use, some people ran to see it. “Sausage reviewer scored the movie for the taco and the hot dog bun.” have a problem. To borrow a may fairly ask of Wagner, is a proto-fascist even if he Party” pulled in $34.3 million overlooking the fact that hot Ms. Hogan saved her harsh- word from Donald Trump, a composed epic operas? Listeners must decide for them- its first weekend. The audi- dogs come from “cows or pigs, est self-criticism for having al- politician the hard left has had selves where to draw that line, and it is no easy task. ence in my theater was in hys- two intelligent and empathetic lowed the review to be written a hand in creating: Sad! Ideally they will do so without a popinjay like Mr. terics over the neurotic bagel creatures that often endure ‘a by a person whose epidermis Thielemann in their ear. and the misogynistic lavash horrible existence’ before was not a sufficient shade of Ms. Weiss is an associate warring over shelf space, the they’re slaughtered.” brown: “First and most damn- book review editor at the Jour- Mr. O’Donnell is a lawyer in the Chicago area. His writing horny hot dog desperate to But such critics pale beside ing, we allowed a non-Latina nal. appears in the Atlantic, the Nation and the Chicago Tribune.

A12 | Monday, August 22, 2016 THE WALL STREET JOURNAL. OPINION

REVIEW & OUTLOOK LETTERS TO THE EDITOR Clinton’s Punitive ‘Exit Tax’ How Can a Restaurant Pay a Pot Washer $15? illary Clinton and Donald Trump are the exit tax will deter inversions, which means Regarding “Seattle’s Minimum- tic as employers learn how to sub- having a tax debate of sorts, with the it wouldn’t raise much money. Which is it? Wage Education” (Review & Outlook, stitute more productive labor and H Aug. 15), the idea of a raise to $15 is capital for those who were able to Democrat wheeling out the familiar Mr. Trump’s plan—when he bothers to men- laudable. However, proponents don’t enjoy the higher minimum wage, class-warfare artillery. Mr. tion it—recognizes the real think past the first step. This wage with the consequence of a further Trump hasn’t replied on the Trump’s plan would problem, which is that the U.S. would be paid to any worker regard- fall in employment. Many things specifics, but the irony is that stop the corporate taxes companies headquar- less of position and contribution to can be done to benefit the eco- his reform would solve the tered in the U.S. far more than the overall success of a business. I nomic welfare of low-wage workers problem that Mrs. Clinton ‘inversions’ she deplores. companies based in other am a retired executive chef and if I but minimum-wage increases do claims to be angry about— countries. Thirty-one of the 34 had to pay $15 to a pot washer, what the opposite. namely, the wave of American OECD countries have cut cor- would a fully qualified cook be ARNOLD FRENZEL companies fleeing for foreign tax climes. porate taxes since 2000, leaving the U.S. with the worth, let alone any supervisor? Are Newnan, Ga. “Corporations should not abandon profitable highest rate in the industrialized world. all minimum-wage supporters willing operations here in the United States to move The U.S. system of world-wide taxation to see the price of a restaurant meal One problem with a single federal abroad, just to give shareholders a quicker re- means that a company that moves from Dublin, increase by 20% to 25%? I think not. minimum wage ($7.25 since 2009) is KLAUS BERTRAM the large cost of living differences turn, CEOs a bigger bonus and unions a weaker Ohio, to Dublin, Ireland, will pay a rate that is Pensacola, Fla. across the country. One possibility hand to play,” Mrs. Clinton said in her Michigan less than a third of America’s. A dollar of profit could be to peg the federal mini- economic speech on Aug. 11. earned on the Emerald Isle by an Irish-based Does the government have the mum wage to the cost-of-living in- Mrs. Clinton is targeting so-called inver- company becomes 87.5 cents after taxes, which right to tell a young person, who dex in each of the approximately sions, where U.S.-based companies move their it can then invest in Ireland or the U.S. or some- has never had a job, that he can’t 3,100 counties. That could result in headquarters by buying an overseas competitor, where else. But if the company stays in Ohio and sell his labor for less than $15 per wages of $12 in Boston and $7 in as well as foreign takeovers of U.S. firms for tax makes the same buck in Ireland, the after-tax hour? If that is not tyranny, there is Richmond, Ind.—and they would be considerations. These migrations are the result return drops to 65 cents or less if the money is no such thing as tyranny. equitable. Then update the wages BILL BURBAGE of a U.S. corporate-tax code that supplies incen- invested in America. each year for cost-of-living changes Cayce, S.C. and inflation. tives to migrate—and Mrs. Clinton wants to en- Mr. Trump proposes to cut the U.S. corporate DOUG HEUPEL act even more restrictions and penalties than rate to 15% from 35% (or 40% counting average You note that when the short-run Prior Lake, Minn. President Obama already has. state rates). Fifteen percent is low enough to transitions to the long run over a The Democrat would impose what she calls deter inversions while making the country more year or so, fast-food franchisees will Remember Henry Ford said, to an “exit tax” on businesses that relocate out- attractive to capital investment and better have moved elsewhere, and by impli- paraphrase: You have to pay employ- side the U.S., which is the sort of thing ba- primed for higher wages. He would also offer cation the demand for such labor ees enough so that they can buy the nana republics impose when their economies a preferential rate of 10% for the $2 trillion al- will decline. products they build or sell. sour. She’d conduct a census and then catego- ready earned overseas. Next is that the demand for GERALD GERSHTEN rize any multinational with more than 50% Mrs. Clinton calls this tax-cutting for billion- such labor will become more elas- Broomfield, Colo. U.S. ownership as a domestic concern that aires and corporate-jet owners, which shows would be subject to a tax on its deferred prof- how unhappy her Presidency could be. Such its if it inverts. She isn’t specifying the puni- Trumpian pragmatism—10% of $2 trillion is tive tax rate. better than 35% of $0—is the only realistic way Taxes Make U.S. Companies Takeover Targets Unlike most countries, the U.S. taxes resi- for Mrs. Clinton to fund her infrastructure plan, Regarding Kevin Hassett and Aparna rent arrangement, so the$2.6 trillion dents—businesses and individuals—on their and Republicans in Congress have sounded out Mathur’s “The Cure for Wage Stagna- lays dormant on its balance sheet. world-wide income, not merely the income that Democrats for such a deal for years. President tion” (op-ed, Aug. 15): The inverse rela- JIM KUDLINSKI they earned in the U.S. But tax law allows them Obama has rebuffed their entreaties, settling tionship between corporate tax-rates Overland Park, Kan. to defer taxes on overseas profits until they for nothing—and now Mrs. Clinton is setting and wages is challenged by the left, but bring the money back to invest at home. herself up for the same. the left’s logic doesn’t make sense. If I am not sure studies are needed U.S.-based companies have about $2 trillion As for Mr. Trump, he could be pointing out an individual’s personal tax-rate to prove that lower corporate taxes parked in foreign subsidiaries. Mrs. Clinton that his corporate-tax plan would raise worker jumped to 15% from 35% without any would improve economic conditions. wants to change the rules retroactively to take incomes, as most economic research suggests. increase in income, is it logical to think Corporations don’t pay the taxes; the a government cut from this overseas cash pile. And why not challenge Mrs. Clinton for sup- that the individual will still spend the cost is passed on to consumers when same amount of money? The idea that we buy a loaf of bread, a car or a Mr. Trump may want to build a wall to prevent porting a status quo that is driving jobs and in- corporations can simply pass higher television. However, corporations immigrants from coming to America, but Mrs. vestment overseas? And maybe even benefiting taxes along to customers without unfa- strive to minimize their “costs” be- Clinton wants to build a tax wall to stop Ameri- China, Mexico and Japan? vorable business consequences is non- cause to be competitive their final cans from escaping. “If they want to go,” she After nearly a decade of Obama-Clinton eco- sense. If prices could have been higher product needs to be cheaper than threatened in Michigan, “they’re going to have nomics, the country needs a debate about how before the tax increase, they would their competitors’. topaytogo.” to revive growth and raise incomes. The corpo- have been. In a global marketplace, Lower taxes could benefit every- By the way, Mrs. Clinton says she’ll use the rate-tax proposals show that whatever Mr. with U.S. corporations paying a tax rate one: employees through higher wages, proceeds of the exit tax to fund what she calls Trump’s risks as President, the main risk from of 35% and non-U.S. competitors pay- shareholders through higher divi- the greatest “investment” in roads, bridges and Mrs. Clinton is four more years of the same dis- ing as little as 15%, American compa- dends and consumers through a airports since World War II. But she also says mal economic performance. nies have little margin for pricing error cheaper final product. However, to re- and are pressured to keep all expenses, cover its losses, the government including wages, down. When tax rates would have to tax individuals at are high, businesses naturally cut ex- higher rates. A Trump Deportation Reversal? penses and investment in order to GEORGE NANICHE maintain profit margins. Moraga, Calif. onald Trump on policy is something less other day, about what he will do with that,” Mr. Progressives relish a high corpo- D than a North Star, but that has its ad- Sessions said on CBS’s “Face the Nation.” “But rate tax-rate and a higher minimum Even if Mr. Hassett and Ms. vantages if he jettisons one of his least he did listen, and he’s talking about it.” wage, but maybe not as much as non- Mathur are right that slashing corpo- attractive positions. Could the Go for it, Mr. Trump. The U.S. businesses appreciate the U.S. rate-income taxes would boost wages Republican be reconsidering Hints emerge that he Clinton campaign will cry government making American com- in the aggregate, the next question to his promise to deport the 11 is rethinking one “flip-flop,” but most voters panies less competitive through taxes ask is: Is this going to raise every- million or more illegal immi- would welcome the change as and, possibly, more attractive take- one’s wages or just the wages of of his worst policies. over targets. those at the top? Corporate-income grants estimated to be living a sign of political progress and ALAN JONES tax cuts are supposed to boost wages and working in the U.S.? tolerance. A policy of mass de- Atlanta, Ga. by incentivizing investment in plants That’s the intriguing possi- portation could never happen and equipment, which boosts econ- bility coming from the Trump campaign on the without the kind of human and economic dis- Lowering corporate tax-rates is in- omy wide productivity. But for most weekend. Mr. Trump met Saturday with his new ruption the American people won’t support deed a key element in getting this of the past few decades, increases in Hispanic advisory council and attendees told once they see what it requires. House-to-house economy growing again. But this will economy wide productivity haven’t the press the candidate seemed to be moving searches and forced family separation would require that our monetary and fiscal translated into wage increases for in that direction. Univision reports that three cause a political uproar that would stop such policy makers do their jobs. the vast majority of workers. DAN CRAWFORD attendees said Mr. Trump “plans to present an a policy cold, as it should. The abrupt removal Specifically, the Fed’s use of “inter- immigration plan in Colorado Thursday that of millions from the workforce would probably est on excess reserves” as its prime Washington, D.C. will include finding a way to legalize millions cause a recession. monetary tool has trapped $2.6 tril- lion of bank liquidity on its balance of undocumented immigrants.” It’s possible to improve U.S. immigration sheet. Ordinarily, this liquidity would Joseph Stiglitz Blames the Trump advisers Kellyanne Conway and Sen. controls without such a draconian policy that have been sold in the fed-funds mar- Jeff Sessions didn’t deny the reports on Sunday. millions of Republican primary voters didn’t fa- ket where it would have had a multi- Euro For Progressive Failure “What I’m certain about is that he did not make vor. Mass deportation is a political and eco- plying effect in the economy financing Benn Steil reviews “The Euro” a firm commitment yesterday, or the meeting the nomic loser. banking-industry lending. But banks (Books, Aug. 13) by Nobel Prize-win- earn more retaining this liquidity as ning economist Joseph Stiglitz, who excess reserves under the Fed’s cur- indicts the currency for causing eco- nomic pain and suffering in Europe. Ortega’s Nicaraguan Coup Eurozone stewards, particularly Ger- reedom and human rights have had a Mr. Ortega has returned to power by ex- The Leverage Ratio Is No many, made it impossible for debt- crisis countries such as Greece to bad run in Latin America in the past de- ploiting democratic rules and then changing Accurate Measure for Risk F continue progressive economic poli- cade. Venezuela has become a Cuban them once in power. Center-right President Ar- Regarding Thomas Hoenig’s “Why cies that could have restored growth satellite and holds scores of noldo Aleman (1997-2002) ‘Risk-Based’ Capital Is Far Too Risky” and the ability to repay debt. In- political prisoners. Pluralism The Sandinista has negotiated a deal with Mr. Or- (op-ed, Aug. 12): Mr. Hoenig takes issue stead, euro villains forced countries hangs by a thread in Bolivia, El become a dictator tega to lower the threshold with our criticism of the leverage ratio, to contain deficits and increase la- Salvador and Ecuador. Yet the for a first-round victory in arguing, “The leverage ratio has proven bor-market flexibility, fueling in- collapse of democracy may be amid U.S. indifference. the presidential election to most reliable principally because it equality and unrest. Mr. Stiglitz ar- most poignant in Nicaragua, 35%. That allowed Mr. Ortega does not pretend to judge future trends gues that the success of a monetary which fought back against the to split the anti-Sandinista in asset quality.” That is akin to claim- union such as the eurozone requires Communist Sandinistas during the Cold War vote in 2006 and win. ing that the most reliable way to pre- the full integration of a political, fis- only to see them return with a vengeance amid The judiciary and the electoral council were dict the outcome of NFL games is to ig- cal and banking union. nore the quality of the players and the A progressive economist blaming a U.S. indifference. already heavy with Sandinistas. Mr. Ortega and past performance of the teams. Of currency union for the failure of pro- Last month Sandinista President Daniel Or- his allies first lifted the constitutional prohibi- course, any banker who underwrote gressive policies is no surprise; nor is tega purged Nicaragua’s opposition from Parlia- tion on presidential re-election in 2011. Then loans on the assumption that each had Mr. Stiglitz’s belief that the fix for Eu- ment. In November he will run for a third five- he pushed through legislation to permit indefi- an equal probability of default would rope’s problems lies in greater top- year term with his wife, Rosario Murillo, as his nite presidential re-elections so he could run be fired instantly. down administration and progressive vice-presidential candidate. Elections under Mr. again this year. But this is precisely what the lever- policies. The laughable part of Mr. Ortega have never been transparent and he has Now 70 years old, Mr. Ortega has used finan- age ratio does: It presumes conclu- Stiglitz’s analysis is his concession barred international observers from this one. cial resources and advice from Venezuela to sively and fantastically that a bank that, even though Europe needs re- He has blocked serious presidential challengers, bully his way to absolute power and great has equal default risk on a 30-year gion wide progressive policies, it also so this won’t be much of a contest. wealth. He is believed to be one of the richest subprime mortgage, an overnight loan needs to embrace a diversity of views. Readers may recall how Mr. Ortega led the men in the country. Many in the business com- to Microsoft and the cash it holds on The nature of the progressive-con- reserve at the Fed. While it is true servative divide is that progressives Sandinista revolution that toppled Anastasio munity went along with his gradual accretions that banks and regulators underesti- want government experts to manage Somoza in 1979 with the help of the Soviet of power, and now it may be too late to prevent mated the risk of mortgages during economic affairs and to equalize indi- Union. He moved quickly to establish a Commu- a full-fledged dictatorship. In June the Supreme the financial crisis, that experience vidual outcomes, while conservatives nist beachhead in Central America. This Court removed and replaced the leader of the hardly justifies equating the risk of all want individuals to make decisions spawned the grass-roots Nicaraguan resistance main opposition party. When some of his own assets for capital purposes. Most im- and take risks in competitive markets known as the Contras aided by the U.S. Mr. Or- party members refused to accept the ruling, Mr. portantly, regulatory nihilism here that may lead to unequal outcomes. tega won one rigged election in 1984. But when Ortega kicked them out of Congress. has real costs: for example, driving TIM LIVINGSTON he agreed to another with international observ- All of this has happened with nary a peep banks out of low-risk assets like Trea- Alexandria, Va. ers in 1990, he lost to Violeta Chamorro. from the Obama Administration. Contrast that surys (those on which return on equi- The Sandinistas accepted defeat but refused with the way the White House aggressively mo- ties are low with a binding leverage Letters intended for publication should ratio) and thereby draining liquidity to surrender their weapons or their judiciary bilized Latin American governments in 2009 be addressed to: The Editor, 1211 Avenue from our capital markets, which rely of the Americas, New York, NY 10036, seats. The “commandantes” of the revolution when Honduras used constitutional means to on banks holding such low-risk assets. or emailed to [email protected]. Please had enriched themselves by confiscating prop- remove a law-breaking president and then in- GREG BAER include your city and state. All letters erty in what was known as “the piñata,” and sisted that new elections be held on schedule. President are subject to editing, and unpublished many Nicaraguan property owners have never Latin Americans have noticed the U.S. double The Clearing House Association letters can be neither acknowledged nor returned. been compensated. standard, and Nicaraguans are paying the price. New York

THE WALL STREET JOURNAL. Monday, August 22, 2016 | A13 OPINION What Trump’s Foreign Policy Gets Right

By John Bolton warfare” as well as stronger military country as a proud, functioning and and intelligence operations, and be viable member of the community of ad one of Donald “a friend to all moderate Muslim nations.” Trump’s Republican op- reformers.” This strategy is entirely Disaster soon followed. And sub- ponents during the consistent with what Jordan’s King sequent American nation-building H campaign for the GOP Abdullah II and other Arab leaders efforts in other countries fared little nomination given the characterize as a civil war within better. Although bilateral financial, same speech on combating global Islam. technical and military assistance can terrorism he gave last week, it In contrast, Mr. Obama and Mrs. advance U.S. foreign-policy objec- would have raised few eyebrows. Clinton still believe terrorism is a tives, the local peoples themselves Naturally, competing candidates law-enforcement issue. They fail to must know what they are about. We would have disputed particular grasp the ideological war we are in can’t do it for them and shouldn’t points—some vigorously—but the and therefore refuse to combat the pretend otherwise. speech’s overall analysis fits well enemy effectively. There were once This foreign-policy reality has within mainstream conservative and those who did not see Communism been clear since the Marshall Plan. Republican thinking. as an ideological threat. They played Following World War II, Washington Some Trump opponents and sup- down their views publicly because provided assistance in various forms porters alike will be distressed by U.S. public opinion was overwhelm- but insisted that European states this news, but the speech visibly ingly contrary, as Mrs. Clinton and conduct nation rebuilding, relying on sharpens the contradictions with Mr. Obama are doing now regarding existing legal, political and cultural Hillary Clinton, who clearly would terrorism. Mr. Trump should emphat- foundations far stronger than those

continue President Obama’s non- ically move the debate about radical BLOOMBERG NEWS prevalent in less-developed regions. strategy concerning radical Islam— Islam into the campaign spotlight. The candidate speaking on foreign policy in Youngstown, Ohio, Aug. 15. Mr. Trump isn’t committing heresy Let’s see who stands where. by saying America’s recent attempts Mr. Trump’s speech also demon- that ideology in multiple ways, both 1992 decision to intervene militarily at nation-building haven’t ended well. The GOP nominee’s speech strated his willingness to face the offensively and defensively. Counter- in anarchic Somalia, and his succes- He’s telling the truth. last week was a serious hand dealt an incoming president, ing Islamic State’s successful propa- sor Bill Clinton’s far-different poli- More important, whether Mr. rather than following ideological ganda and recruitment efforts, espe- cies, highlight the distinction. Trump is “interventionist” or “non- contribution, in sharp abstractions, as Mr. Obama has cially digitally, and exposing them Agree or disagree with President interventionist” in his proclivities is contrast with Clinton consistently done. Although Mr. for the barbarians their conduct Bush’s Somalia intervention, he pre- really a nonissue, as are academic Trump restated his opposition to proves them to be are critical cisely defined his limited objective flights of fancy such as characteriz- and Obama’s nonstrategy. President George W. Bush’s 2003 elements of a winning plan. of opening channels for humanitar- ing U.S. “multilateralism” positively invasion of Iraq and overthrow of Confronted with ideological ian supplies. Although the military and “unilateralism” negatively. the dictator Saddam Hussein, he threats, America is entirely justified operations were blessed by the These are essentially word games now confirmed to include paying nonetheless argues correctly that in raising appropriate immigration United Nations Security Council, Mr. about tools rather than policies, like ransom for hostages. More broadly, Mr. Obama’s “reckless” withdrawal protections, which is neither unprece- Bush was always clear that they asking in the abstract “do you favor the speech underlines why terrorism of U.S. forces in 2011 rested on an dented nor contrary to existing law. would be under U.S. command. So using a knife or a spoon?” Obvi- and other grave national-security “election-driven timetable” that Even now, a central statutory require- fixed was Mr. Bush on the interven- ously, the critical question for real threats should take center stage in “surrendered our gains in that ment for U.S. naturalization is that tion’s limits, he showed remarkable policy makers is “to do what?” the presidential race. country and led directly to the rise applicants be “of good moral charac- deference to President-elect Clinton National security should be central Mr. Trump rightly sees an ideo- of ISIS,” thereby constituting “a ter, attached to the principles of the by offering to withdraw all Ameri- to the 2016 presidential contest. Mr. logical war being waged against the catastrophic mistake.” Constitution...andwelldisposed to can forces by Jan. 20, 1993. Trump’s speech is a serious contribu- West by a hateful, millenarian The wider implications of Mr. the good order and happiness of the But Mr. Clinton had much grander tion to that end. He needs to main- obsession targeting core American Trump’s speech were apparent in United States.” That sounds very objectives, namely practicing “asser- tain his focus and discipline, and by constitutional and philosophical the subsequent commentary on two much like Mr. Trump’s speech, and tive multilateralism.” Somalia was so doing compel Mrs. Clinton to principles. From that assessment points: The GOP nominee’s immi- hardly earth-shaking. Whether exist- his chosen vehicle for nation build- defend her intention to continue flow several policy consequences, gration views as they intersect ing authorities suffice or whether ing. Mr. Clinton’s ambassador to the President Obama’s failed polices. most important the imperative to with terrorism, and his disdain for new legislation is needed is unclear, U.N., Madeleine Albright, praised destroy the terrorist threat rapidly “nation building.” Let us take them but the broad policy isn’t. Security Council action endorsing Mr. Bolton is a senior fellow at and comprehensively before it kills in turn. On nation building, the debate is the president’s nation-building proj- the American Enterprise Institute and maims more innocent people. Mr. Trump correctly identified confused, with many advocates ect, saying, “With this resolution, we and the author of “Surrender Is Not Mr. Trump correctly argues that, in the terrorist threat as fundamen- mistakenly conflating it with “inter- will embark on an unprecedented an Option: Defending America at the combating Islamic State, al Qaeda tally ideological. It would be inex- vention.” The two are different. Pres- enterprise aimed at nothing less United Nations and Abroad” (Simon and others, “we must use ideological cusable for America not to combat ident George H.W. Bush’s November than the restoration of an entire & Schuster, 2007). The Climate Prosecutors Can’t Dodge Congress Forever By Elizabeth Price Foley conflict” by failing to show “a due function.” That’s why lawmakers infringe a constitutional right. grounded in Article II of the Consti- respect for federalism.” Massachu- passed a law to make contempt of a Congress’s broad investigatory tution. or a sense of how far the left setts Attorney General Maura Hea- congressional subpoena a crime, pun- power clearly extends to state offi- But there is no such difficult con- F will go to enforce climate- ley, in a similar letter dated July 26, ishing anyone who willfully refuses to cials. In February, the House Over- stitutional balancing required here. change orthodoxy, read the asserted that the subpoenas are answer “any question pertinent to sight Committee compelled Darnell When Congress subpoenas state recently released “Common Interest “unconstitutional” because they are the question under inquiry.” Earley, the emergency manager of attorneys general in the rightful Agreement” signed this spring by 17 “an affront to states’ rights.” The subpoenas to state attorneys Flint, Mich., to testify on the con- exercise of its legislative and inves- Democratic state attorneys general. This view is utterly wrong. Fed- general regarding their climate cru- tamination of that city’s drinking tigative power, all assertions of The officials pledged to investigate eralism is a critical component of sade easily fall within Congress’s water. Mr. Earley initially refused to state authority give way because of and take legal action against those the constitutional architecture. The legislative and oversight compe- appear, but he quickly acceded to its the Supremacy Clause. No state offi- committing climate wrongthink. Be- federal government exercises only subpoena after the committee’s cial—whether judicial, legislative or ginning late last year, the attorneys limited and enumerated powers, and chairman, Rep. Jason Chaffetz (R., executive—may resist a legitimate general of Massachusetts, New York the states, under the Tenth Amend- The state officials who Utah), threatened to call the U.S. federal command. and the U.S. Virgin Islands, all signa- ment, possess all other powers “not Marshals to “hunt him down.” Throughout the Obama adminis- tories to the agreement, issued broad- delegated to the United States.” But subpoenaed Exxon face Under the Supremacy Clause of tration, congressional powers have ranging subpoenas against Exxon Mo- when the federal government acts questions from the House the Constitution, privileges grounded been increasingly usurped by the bil and conservative think tanks. They within its delegated powers, it is in state law—such as the attorney- executive. The White House has uni- sought documents and communica- entitled to supremacy over the —and they have to answer. client privilege or work-product laterally rewritten statutes, ignored tions related to research and advo- states. privilege—are not binding on the congressional subpoenas and arro- cacy on climate change. The Supreme Court has long rec- federal government. The letter to gated to itself the power of the Concerned that these investiga- ognized Congress’s power to investi- tence. The House Science Commit- Rep. Smith from the Massachusetts purse. These actions have too often tions were designed to chill First gate any matter within its legisla- tee has jurisdiction over matters attorney general, for example, received the blessing of congressio- Amendment rights, the House Com- tive or oversight competence. With relating to scientific research. Its argued that the committee’s sub- nal Democrats, who have allowed mittee on Science, Space and Tech- that comes a corresponding power rules authorize the chairman to poena seeks documents that are partisanship to override their fidel- nology issued its own subpoenas. In to enforce its inquiries. The justices issue subpoenas on behalf of the “either attorney-client privileged” or ity to the Constitution and their mid-July the committee, led by Rep. wrote in Barenblatt v. U.S. (1959) committee. “protected from disclosure as attor- institutional self-interest. Lamar Smith (R., Texas), asked the that the scope of Congress’s power Further, Congress has ample ney work product.” Congress is obli- To begin restoring Congress’s attorneys general to produce their of inquiry “is as penetrating and authority to investigate and sanction gated to honor neither of those constitutional authority, the House communications with environmental far-reaching as the potential power violations of First Amendment rights state-law privileges. of Representatives should push back groups and the Obama administra- to enact and appropriate under the that are committed by state officials. When Congress subpoenas the against these state attorneys general tion about their investigations. Constitution.” For instance, the Ku Klux Klan Act of White House or agencies in the and vigorously litigate to enforce They have indignantly refused to Similarly, in McGrain v. Daugherty 1871 includes a provision—lawyers executive branch, there is a delicate the Science Committee’s subpoenas. comply. New York Attorney General (1927), the court held that “the often call it simply “section 1983,” balancing of competing constitu- Eric Schneiderman claimed, in a July power of inquiry—with the process to referring to its place in Title 42 of tional interests. This is because the Ms. Foley is a constitutional law 13 letter to Mr. Smith, that the com- enforce it—is an essential and appro- the U.S. Code—authorizing monetary executive often refuses to comply by professor at Florida International mittee was “courting constitutional priate auxiliary to the legislative damages against state officials who invoking a presidential privilege University College of Law. The College Republicans Divide Over Trump By Zachary Young At left-of-center universities Col- President Declan Garvey says that strong support for down-ballot Re- At Yale, my own university, the lege Republicans have always been in a recent survey of club members publicans. College Republicans affirmed their his past spring, “Feel the Bern” working in occupied territory. But only 10% backed the party’s nomi- Still, not every campus chapter is support for Mr. Trump earlier this T laptop stickers and T-shirts this year they have splintered over nee. reticent about the GOP nominee. The month. “Our party, of which we are proliferated at colleges across Donald Trump. Their responses, At Hillsdale College, Republicans 600-member Citadel Republican Soci- an official branch and to which we the nation as Bernie Sanders chal- which range from enthusiastic to do not traditionally endorse candi- ety “enthusiastically supports Donald remain loyal,” read the statement, lenged Hillary Clinton for the Dem- antipathetic, mirror divisions in the dates. This year is no different, says Trump,” according to president Zac “has nominated Donald Trump for ocratic nomination. Students head- national GOP. president Brant Cohen. “We desire Rutherford. Ditto for Liberty Univer- president.” ing back to campus for the new The Harvard Republican Club will our members to think and choose sity, where chairman Jonah Athey Well, not everyone was loyal. In school year, however, are not likely not be supporting this year’s nomi- for themselves using the foundation response to this endorsement, sev- to see many “Make America Great nee. “Donald Trump is a threat to the of a conservative worldview.” eral club leaders immediately re- Again” caps—even among self- survival of the Republic,” the club The Princeton Republicans are For the GOP,campus is signed to establish the “Yale New avowed Republicans. announced in an Aug. 4 statement. new to the Hillsdale approach. On Republicans”—who pledge to “put Aug. 8 the club declined to take a occupied territory. But this national interests above partisan position on Mr. Trump’s candidacy. year it’s hard to see where ones.” In a sign of the times, its statement the battle lines are drawn. So what does it matter whether or PUBLISHED SINCE 1889 BY DOW JONES & COMPANY says “we encourage people to vote not College Republicans endorse Mr. for candidates who have demon- Trump? Millennial.gop—a project of Rupert Murdoch Robert Thomson Executive Chairman, News Corp Chief Executive Officer, News Corp strated a commitment to Republican the College Republican National Gerard Baker William Lewis policies.” says his College Republicans are Committee—notes the high price of Editor in Chief Chief Executive Officer and Publisher Like their Princeton counterparts, “proud to stand behind Donald ignoring young voters. Ohio University Republicans plan to Trump.” The University of Alabama “If young voters had voted like Rebecca Blumenstein, Matthew J. Murray DOW JONES MANAGEMENT: Deputy Editors in Chief Ashley Huston, Chief Communications Officer; focus on down-ballot races this year. College Republicans president Drew other age groups,” it points out, DEPUTY MANAGING EDITORS: Paul Meller, Chief Technology Officer; The club’s president, David Parkhill, Mansell agreed, noting, “the choice “Mitt Romney would have won the Michael W. Miller, Senior Deputy; Mark Musgrave, Chief People Officer; calls himself “very pro-Trump,” but in this election could not be more popular vote and the electoral Edward Roussel, Chief Innovation Officer; Thorold Barker, Europe; Paul Beckett, Asia; adds, “there are members that clear.” college, with significant gains for Christine Glancey, Operations; Jennifer J. Hicks, Anna Sedgley, Chief Financial Officer; Digital; Neal Lipschutz, Standards; Katie Vanneck-Smith, Chief Customer Officer aren’t on the ‘Trump Train’ yet, so Perhaps the most comprehen- Republicans down ballot.” As the Alex Martin, News; Ann Podd, Initiatives; OPERATING EXECUTIVES: it makes things a little tricky.” The sive endorsement of Mr. Trump schism among College Republican Andrew Regal, Video; Matthew Rose, Enterprise; cover photo on the club’s Facebook comes from the Notre Dame Col- chapters underscores, Mr. Trump is Stephen Wisnefski, Professional News; Jason P. Conti, General Counsel; Jessica Yu, Visuals Nancy McNeill, Corporate Sales; page promotes the re-election of lege Republicans, which took the having a hard time even among Steve Grycuk, Customer Service; Paul A. Gigot, Editor of the Editorial Page; Jonathan Wright, International; incumbent Sen. Rob Portman. form of a 900-word statement young people who are already Daniel Henninger, Deputy Editor, Editorial Page DJ Media Group: The College Republican National assessing the New Yorker’s poli- Republican. What does that say WALL STREET JOURNAL MANAGEMENT: Almar Latour, Publisher; Kenneth Breen, Committee takes a forgiving tone. cies. “We can and must support about his prospects for the larger Trevor Fellows, Head of Global Sales; Commercial; Edwin A. Finn, Jr., Barron’s; Chairman Alexandra Smith says our party’s nominee,” the Fighting youth vote come November? Suzi Watford, Marketing and Circulation; Professional Information Business: Joseph B. Vincent, Operations; Christopher Lloyd, Head; “there is more than one way to be a Irish Republicans concluded. Larry L. Hoffman, Production Ingrid Verschuren, Deputy Head College Republican.” She further “While his personality may be Mr. Young, a Robert L. Bartley

EDITORIAL AND CORPORATE HEADQUARTERS: notes the “nearly universal” opposi- brash, it is important to remember Fellow at the Journal’s editorial 1211 Avenue of the Americas, New York, N.Y., 10036 tion to Hillary Clinton among College that we are not electing a neighbor page this summer, is a rising senior Telephone 1-800-DOWJONES Republican chapters, as well as their or a friend.” at Yale.

A14 | Monday, August 22, 2016 THE WALL STREET JOURNAL.

CITY NEWS A16, A17 | PROPERTY A18 | HEARD & SCENE A19

The Character Wrong Number Of a Tragedy The Jets’ No. 2 problem SPORTS | A20 ARTS | A19 LARRY FRENCH/GETTY IMAGES

WSJ.com/NY ** THE WALL STREET JOURNAL. Monday, August 22, 2016 | A15 Malloy’s Stature Rises, but Probe Clouds Prospects

BY JOSEPH DE AVILA Joe Markley, a Republican. “But I would say the investigation, Connecticut Gov. Dannel first of all, makes it unlikely.” Malloy’s national profile has The investigation centers on reached new heights this year, allegations that the state Dem- even as he faces growing polit- ocratic Party illegally used ical challenges at home. money from its federal account He leads the Democratic on Mr. Malloy’s re-election ef- Governors Association. He co- forts. The federal account in- chaired the Democratic Party’s cluded donations from people platform committee and ad- with state contracts, who are dressed delegates during the barred from donating to state opening night of the national candidates. convention in July. And he has The party has said it is co- emerged as one of the most operating with investigators aggressive surrogates for and that it followed federal and presidential candidate Hillary state election laws. Mr. Malloy Clinton. said earlier this month that he This has led to speculation hasn’t been subpoenaed by fed- in Connecticut that Mr. Malloy eral investigators. was in the running for a job in Before becoming governor, the Clinton administration Mr. Malloy worked as a federal should Mrs. Clinton win the prosecutor in Brooklyn and

election this fall. Many political served four terms as Stamford’s PETER J. SMITH FOR THE WALL STREET JOURNAL (2) observers think Mr. Malloy mayor. He narrowly defeated Councilman Mathieu Eugene, center, who represents part of Crown Heights, and others walked to a festival in Brower Park on Sunday would pass on running for a Greenwich businessman Tom following a memorial service marking 25 years since the riots. Below, one of the buildings that have sprung up in the neighborhood. third term with his job ap- Foley in a tight gubernatorial proval rating at 24%. election in 2010 and beat him a second time in 2014. The governor has Mr. Malloy’s supporters say don’t count him out. Nick Bal- Crown Heights Hits Stride said he hasn’t been letto, chairman of the Connecti- subpoenaed by cut Democratic Party, said Mr. Crime is way down and communities. But they also Malloy’s stewardship of the rental market heats up worry about being pushed out federal investigators. state, including passing new by rising rents and that the gun laws after the Newtown as area moves beyond old identity of the neighbor- school shooting, made him a the strife from the past hood is giving way to new But the potential for a White good choice for a Clinton ad- businesses. House position has become ministration. “I feel invisible in my com- murkier since a federal investi- “I think he’s earned a secre- BY KEIKO MORRIS munity now,” said Lisa Mathis, gation began, focused on the tary’s position,” perhaps lead- AND ZOLAN KANNO-YOUNGS a resident of Crown Heights Connecticut Democratic Party’s ing the Department of Health for 50 years and organizer for spending on his 2014 re-elec- and Human Services or Trans- Twenty-five years after ra- the Crown Heights Tenants tion campaign. portation departments or serv- cial violence propelled Crown Union. “There is definitely a cloud ing as attorney general, Mr. Heights into the national spot- The neighborhood had far hanging over him now in the Balletto said. “Just because light, the Brooklyn neighbor- greater problems a quarter of state,” said Gary Rose, chair- they are investigating some- hood has become a hot real- a century ago, when crime man of the department of gov- thing doesn’t mean there is estate market. rates were much higher. The ernment, politics and global something wrong or there is Young people northern portion of Crown studies at Sacred Heart Uni- something there.” PROPERTY escaping rising Heights recorded more than versity in Fairfield, Conn. “He Bill Curry, a Democrat who prices in sur- 5,800 of the seven major is a very wounded prospect served as counsel to President rounding neigh- crimes in 1994, the earliest right now for a federal ap- Bill Clinton’s administration, borhoods are moving into new and commercial and develop- The push and pull of gentri- statistics available from the pointment.” said it was unlikely Mr. Malloy developments. Bustling new ment properties in Crown fication have left older Brook- New York Police Department. Many Connecticut Republi- would be considered for any cafes and restaurants have Heights topped $635 million, lynites with mixed feelings Back in the 1990s, the cans agree. position while there is an active made it a destination. And almost a sixfold increase from about their neighborhood’s neighborhood’s identity was “The rumors around here for federal probe. real-estate investors have the $110.16 million notched in transformation. They embrace shaped by Hasidic Jewish resi- years has been he wants to get “No one under any cloud of taken note. 2011, according to real-estate- the drop in crime, more ame- dents, Caribbean-Americans out of Connecticut and go to investigation is on any serious Last year investment in services firm Cushman & nities and improved relations and African-Americans, all of work in Washington and get a list for any appointment in any rental residential buildings Wakefield. among increasingly diverse PleaseturntopageA18 cabinet post in the Clinton ad- White House,” said Mr. Curry, a ministration,” said state Sen. Please see MALLOY page A16 De Blasio Fundraiser Faces Scrutiny

BY JOSH DAWSEY Hyers, Mr. de Blasio’s 2013 Now, Mr. Offinger is under ter said. Until his come-from-behind campaign manager. “A lot of scrutiny as part of a federal Investigators have asked win in the Democratic mayoral the people in New York who and state investigation exam- donors specific questions primary, Bill de Blasio had no have big money and give big ining the mayor’s fundraising about their interactions with finance director and rarely money didn’t necessarily like activities, according to people Mr. Offinger, people familiar dealt with wealthy donors as de Blasio.” familiar with the matter. In- with the interviews said. Mr. he pursued the top job at New Mr. Offinger, 33 years old, vestigators are looking at Offinger declined to comment, York City Hall. soon played a key role in Mr. whether the mayor exchanged citing the investigation. The day after he won the de Blasio’s orbit, acclimating government actions for dona- “Mr. Offinger has built a ca- primary, the campaign hired him to CEO types and other tions, the people said. reer as an effective and re- Ross Offinger, a political fund- wealthy donors who hadn’t Investigators have obtained spected fundraiser and the in- raiser, to quickly raise more previously supported him. Be- reams of Mr. Offinger’s emails, vestigation will show that he than $5 million for Mr. de Bla- fore running for mayor, Mr. de showing some correspondence has done nothing wrong,” said sio’s general-election cam- Blasio had never raised more with donors who had business Harlan Levy, a lawyer for Mr. paign. than $2 million for one of his in front of City Hall and com- Offinger. “I knew he could bring a set electoral campaigns and didn’t munications he had with the Mr. Offinger has continued

LUCY NICHOLSON/REUTERS of donors into the race that de know as many prominent do- mayor’s staff about donors, to work as a fundraiser for Mr. Gov. Dannel Malloy at the Democratic National Convention in July. Blasio would need,” said Bill nors, Mr. Hyers said. people familiar with the mat- Please see AIDE page A16

81° Weather On Pokémon’s Turf, Catch, Tag and Release off Long Island Real Feel TODAY’S HIGH 9 a.m. 71° 5 p.m. 77° The Pros Are Amateurs Max. Humidity BY ALEX RASKIN “I’m a novice,” he said. 95° (1916) The “gym” in this instance MOSTLY Sunrise/Sunset In the real world, going to is a virtual meeting place SUNNY 6:14 a.m./7:43 p.m. the gym with an NFL player where players can pit their would be a humbling experi- Pokémon against others’ in Tuesday’s High ence for almost anyone. In the battle. Players, or “trainers” as 79° ever-widening realm of loca- they are known, capture Poké- tion-based augmented reality, mon—cartoon monsters that the tables can be dramatically appear in about 150 variet- turned. ies—by hunting the imaginary N.Y. Sports Lineup “I went to a gym and I got critters with the help of a vir- worked,” admitted Giants line- tual Poké Ball. The game uses 7:05 p.m. Monday backer Mark Herzlich. the phone’s GPS and camera to S.I. Yankees @ Herzlich, a former ACC De- project onto the physical Connecticut fensive Player of the Year and world an alternate universe of Tigers first-team All-American at Pokémon, gyms and PokéStops Boston College, was still re- (where players can acquire 10:10 p.m. covering from the whipping he more Poké Balls), which is why Monday took in “Pokémon Go,” the free every fourth person you see Yankees @ smartphone videogame that these days can be spied gazing Mariners has taken over millions of hu- quizzically through their

man eyeballs this summer. phones. BENJAMIN HOSTE FOR THE WALL STREET JOURNAL For N.Y. sports coverage, see A20 He’s not very good at it. PleaseturntopageA20 TAGGED: A tracking device is implanted in a dusky shark off Montauk, part of a research effort. A16

A16 | Monday, August 22, 2016 ***** THE WALL STREET JOURNAL. CITY NEWS

Chris Fischer fields calls while shuttling supplies and passengers to the M/V Ocearch, left. Shark materials and radios in the ship’s galley, above. Matt Ajemian of the Harbor Branch Oceanographic Institute at Florida Atlantic University takes notes, below. BENJAMIN HOSTE FOR THE WALL STREET JOURNAL (5) Off Long Island, the Shark Is a Bellwether BY HANNAH FURFARO

Off the coast of Montauk on a sweltering day last week, four people slung themselves over the side of a fishing boat, holding on to their prize: a blue-gray dusky shark, just over 4 feet in length. Three of them—a veterinar- ian, a scientist and a ship cap- tain—steadied it in the water while Tobey Curtis, a fishery- management specialist, As a top predator, reached down to make a small the shark plays an incision in its belly. He pressed a cigar-size tracking device important role in the into the slit, then the veteri- local ecosystem. narian, Harley Newton, su- tured the incision and took blood samples. stretch of water off the tip of They finished within min- Long Island, but scientists are utes and let the dusky glide off still trying to confirm whether into the deep as the team it is a birth and nursery clapped and cheered. ground for them. When Mr. “Even though we’re trying Fischer learned that Mr. Curtis to target the white sharks,” had tagged a juvenile white Mr. Curtis said, “if we get shark last summer, he decided these other species, we’re go- to pay a visit to the waters, ingtotagthemtoo.” also known as the New York The dusky, like thousands Bight. of other sharks, rays, turtles Over the weekend, the team and even horseshoe crabs, is caught and tagged two juve- providing data to researchers niles, who they named Mon- The science team returns to the M/V Ocearch after tagging and releasing a juvenile dusky shark half a mile off of Montauk. through tracking devices at- tauk and Hudson. The sharks tached to its body. The re- now join dozens of others who The scientists hope the tag- Of the 26 known species of their work helps educate the passionate about what they searchers are hoping to better can be followed in real time on ging data will deepen their un- sharks in New York, some, like public about other environ- do,” she said. understand the lives of these Ocearch’s online tracking map. derstanding of migration pat- the dusky, have been depleted mental threats facing top-of- That passion started early creatures as they trace their “They’re most vulnerable terns, how populations change by overfishing. They, along the-food-chain predators, like for Matt Ajemian, a Syosset paths across the sea. when they’re little,” Mr. Fis- over time and the importance with white and sand tiger climate change. native who is now an assistant Dr. Newton, a veterinarian cher said, “so we’ve got to try of these waters as habitats. In- sharks, are now off limits to For the tagging trip, the re- research professor at Florida at the Wildlife Conservation to figure out where they are— formation like this could help recreational and commercial searchers were accompanied Atlantic University’s Harbor Society’s New York Aquarium, and when they are—when change animal-conservation fishing. by students from Brunswick Branch Oceanographic Insti- along with Mr. Curtis and they’re little and help them policies or update fisheries Complicating efforts to re- School, an all-boys school in tute. He recalled childhood their teammates were on a get bigger.” regulations. build their numbers, many Greenwich, Conn., and two of fishing trips and visits to the trip sponsored by Ocearch, a While he has his sights set As a top aquatic predator, shark species are slow to grow their teachers. Getting the aquarium with his father, and shark-research and conserva- on tagging white sharks, sci- the shark plays an important and reproduce. “When you boys “out in the wild” gives later swimming with sharks as tion nonprofit founded by for- entists from the New York role in the local ecosystem, have that kind of biology, if them a better understanding an adult. “You see these things mer TV personality Chris Fis- Aquarium were invited aboard and a healthy shark population you knock down that popula- of how scientists do their jobs, gliding and knifing through cher. to conduct research on other is a good indicator of a thriv- tion by 80%, it’s going to take said Dana Montanez, who the water,” Dr. Ajemian said. According to historical re- shark species that are impor- ing one, said Merry Camhi, di- a very long time for those heads the school’s science de- “You see a gem of evolution cords, young white sharks— tant to the area, such as blue rector of the New York Sea- populations to recover,” Dr. partment. right in front of you—a tor- known colloquially as great sharks, shortfin mako and scape conservation program at Camhi said. “So much of it, too, is talk- pedo in the sea, just flying whites—have frequented this smooth dogfish. the New York Aquarium. The scientists also hope ing to adults who are really past.”

has or will change that fact.” aide to Ms. Gillibrand. political operations but no one MALLOY The statement didn’t ad- AIDE While working for Ms. Gilli- crossed “any lines” or prom- dress the federal investigation brand, Mr. Offinger courted ised official government ac- or its potential impact on the big Democratic donors and tions. ContinuedfrompageA15 governor’s future. The Clinton ContinuedfrompageA15 threw soirees in Washington Several donors described two-time Democratic candidate campaign didn’t respond to a de Blasio since the probe be- and New York for her. Friends Mr. Offinger as aggressive and for governor in Connecticut request for comment. came public this spring, at- said they developed a close persistent, making it clear the who supported Bernie Sanders Scott McLean, professor of tending fundraisers to collect bond. mayor expected a contribution during the primaries. “It simply political science at Quinnipiac checks and sitting with the In 2013, he felt conflicted if they had indicated they isn’t worth the enormous polit- University, said Mr. Malloy has mayor at Brooklyn restaurants about taking the new job with would give. He often ap- ical and moral hazard.” embraced his role as a surro- as they worked the phones in Mr. de Blasio, but wanted a proached real-estate develop- Matthew Hennessy, a Demo- gate for Mrs. Clinton and ap- tandem. new opportunity, people famil- ers and unions, some with cratic consultant, said a federal pears to be pursuing a federal Mr. de Blasio has said that iar with the matter said. business before the city, peo- investigation “obviously would job because he is unlikely to be he and his aides have followed Since Mr. de Blasio won the ple familiar with the matter be an area of concern for any- re-elected given his unpopular- all campaign-finance laws. election, Mr. Offinger stayed said. one doing vetting for a senior ity at home. Neither Mr. de Blasio nor Mr. on as his primary fundraiser, position in the administration.” “He has really taken this pit- Offinger has been accused of earning at least $200,000 in Mr. Offinger got a But he added that Mr. Malloy’s bull role attacking Donald any wrongdoing. BERLIN ROSEN total over the years, records relationship to the investiga- Trump,” Mr. McLean said. Mr. Offinger’s lawyer de- Ross Offinger, a fundraiser for show. He raised money for the subpoena in April, tion has only been tangential Tom Swan, a Democratic po- clined to say whether Mr. Mayor Bill de Blasio’s campaign. Campaign for One New York, a people familiar with from what is currently known litical activist and executive di- Offinger had been interviewed nonprofit that advanced the publicly. rector of the Connecticut Citi- by federal authorities. Mr. ried, played soccer at Hobart mayor’s agenda, the mayor’s the matter have said. A spokesman for Mr. Malloy zen Action Group, said Mr. Offinger received a subpoena and William Smith Colleges 2017 re-election bid and the said in an emailed statement Malloy would face a tough con- in April, people familiar with upstate. He developed a gre- mayor’s failed 2014 effort to “he’s working hard as governor firmation if he was nominated the matter have said. garious reputation on campus. help Democrats win control of In recent months, Mr. Offin- every single day, and nothing during a federal investigation. People who know Mr. Offin- “He would argue politics on the state Senate. ger has complained to friends “If this is still hanging over ger describe him as low-key the bus passionately,” said Mr. Offinger’s wasn’t in- that Mr. de Blasio was more his head, Republicans would and low profile. Shawn Griffin, the soccer volved in decisions about how difficult to work for than Ms. We Want to Hear have a field day,” Mr. Swan Several high-level political team’s head coach. “He was al- to spend the money and had Gillibrand and weighed the From You said. operatives in New York said ways up on the latest political little sway in the mayor’s po- idea of eventually doing some- Have something to say about John Olsen, former chairman they have had few interactions happenings and could talk to litical operations, people fa- thing besides fundraising. He an article in Greater New of the state Democratic Party, with him and rarely saw him anyone. He was the friendliest miliar with the matter said. has tried to remain upbeat, as- York? Email us, along with said he doesn’t think the inves- at events outside of fundrais- guy around.” Donors were sometimes sociates said. your contact information, at tigation means Mr. Malloy ers for Mr. de Blasio. He His political career began promised by Mr. Offinger ac- “It’s annoying to him when [email protected]. Your letter wouldn’t be considered. But he spends weekends attending soon after graduating, working cess to special parties or calls people are showing up at his could be published in our acknowledged that Republicans music and comedy shows, for now U.S. Sen. Kirsten Gilli- or meetings with Mr. de Bla- house,” Mr. Hyers said. “But I weekly Feedback column on would use that as a line of at- cruising on boats, drinking brand, a New York Democrat sio, people familiar with the don’t think he’s rattled. He Friday. Letters will be edited tack. beer and watching football in who was then running for the matter said. Mr. Hyers, who checked with a lawyer every for brevity and clarity. Please “If you are a surrogate, they his Brooklyn neighborhood, House of Representatives. He also served as chairman of the time he did anything. This include your city and state. want to whack you,” Mr. Olsen people who know him said. was recommended by Gio- Campaign for One New York, isn’t his first rodeo. This will said. Mr. Offinger, who is mar- vanna Gray Lockhart, a former said donors often get perks in all get dismissed over time.”

THE WALL STREET JOURNAL. ***** Monday, August 22, 2016 | A17 CITY NEWS Schumer Urges Security Review After JFK Scare BY ZOLAN KANNO-YOUNGS At his office in Midtown Manhattan, Mr. Schumer ques- The U.S. Department of tioned security lapses, such as Homeland Security should in- blind spots in camera coverage vestigate how law-enforce- and why police weren’t given ment agencies handled a false immediate access to private report of an active shooter at airlines’ security footage. John F. Kennedy International The senator also asked Airport this month, U.S. Sen. Homeland Security to look Charles Schumer said Sunday. into the training of Transpor- Mr. Schumer, a New York tation Security Administration Democrat, said the lack of col- officers. They added to the laboration among governmen- chaos by yelling “bomb” and tal agencies in responding to “someone’s been shot,” Mr. the Aug. 14 reports of gunfire Schumer said. created chaos—sending travel- “It’s hard to believe after ers and airport employees there’s been so much terror at running for cover—and thrust different airports that there is the overall security of the air- a lack of coordination that ex-

port into question. ists,” he said. PETER J. SMITH FOR THE WALL STREET JOURNAL (3) The senator called on the When asked about the sena- federal agency to conduct a tor’s remarks, a TSA spokes- formal audit on the security woman said the agency fol- procedures at the airport. Offi- lowed security protocol during Stepmom Arraigned in Strangling cials at the Department of the incident. Homeland Security and the “Local law-enforcement of- BY MARK MORALES Port Authority of New York ficials are primarily responsi- and New Jersey, which oper- ble for protecting passengers A woman accused of stran- ates the airport, didn’t re- and airport property during an gling her 9-year-old stepdaugh- spond to requests for com- active shooter situation,” the ter was arraigned Sunday on a ment Sunday. spokeswoman said. murder charge in Queens Crim- “We can’t let this false Officials at the Port Author- inal Court. alarm become the sad truth of ity described the response ap- Shamdai Arjun, 55 years old, the future,” Mr. Schumer said. propriate the day after the in- was charged with second de- “The panic and chaos that en- cident. gree murder in the death of sued from the shots-fired Last week, New York City Ashdeep Kaur, who was found scare at JFK last week raises Mayor Bill de Blasio, a Demo- lifeless inside the family’s very disturbing questions crat,said“weallhavetodo home on 112th Street in the about the state of prepared- better at the airports.” Richmond Hill neighborhood ness and coordination of re- “There’s no question about Friday, officials said. sponse if—heaven forbid—a it,” he said. Ms. Arjun, wearing a white real attack were to occur.” New York Police Department coverall provided by the De- The false alarm led to ter- Commissioner William Bratton partment of Correction, minal evacuations, flight can- said the incident would serve pleaded not guilty when she Police at the Richmond Hill, Queens, home where 9-year-old Ashdeep Kaur, above, was found cellations and heavy traffic as a learning lesson. appeared before Justice Gerald strangled to death in the bathtub. Above right, Manjinder Singh, uncle of the slain girl. around the airport. The NYPD responded to the Lebovits on Sunday afternoon. Last week, New York Gov. reports with around 400 offi- “This defendant repeatedly tered the first-floor bathroom the tub, officials said. unclear late Sunday if he had Andrew Cuomo, a Democrat, cers, but the city’s airports are and on numerous occasions in the family’s home at 4 p.m., Ashdeep was found in the an attorney. called for a review of security under the Port Authority’s ju- threatened to kill the victim, according to court records. fetal position with bruising to Queens District Attorney procedures at the airport. risdiction, he said. most recently doing so this Ms. Arjun told a resident in- her head and neck as well as a Richard Brown called the Ash- past Tuesday. On Friday, she side the home that she had to cut on her left foot, police said. deep’s death a “horrifying made good on that threat,” said go to a doctor’s appointment, She was unconscious and unre- case,” describing the girl in a Queens Assistant District At- and she left with her two sponsive. statement as “defenseless.” torney Michael Curtis. grandchildren and her ex-hus- Emergency medical service “Her actions, if true, are be- Mr. Curtis accused Ms. Arjun band, Raymond Narayan, at workers arrived at the home a yond comprehension and must of telling “conflicting stories about 5:30 p.m., officials said. short time later and declared be severely punished,” said Mr. and numerous lies” to her hus- The resident asked where Ash- the girl deceased, police said. Brown, referring to Ms. Arjun. band, a person who lived in the deep was, and Ms. Arjun said The medical examiner ruled Residents in the neighbor- family’s home and the New she was in the bathroom, wait- that the cause of death was hood were shaken by news of York Police Department detec- ing to be picked up by her fa- strangulation, officials said. the killing. tives who interviewed her. ther, officials said. Later Friday night, NYPD de- “I just think if my child had Ms. Arjun’s attorney, Judah The resident then called the tectives arrived at the home of died, what would I feel,” said Maltz, said Ms. Arjun denied victim’s father to tell him his Ms. Arjun’s ex-husband but no Kiran Kaur, 31, a mother of killing her stepdaughter and daughter had been locked in one answered the door. An three who cried as she spoke. making threats against the the bathroom and wasn’t re- hour later, investigators were “She was my daughter’s age. I girl’s life. sponding to several knocks on allowed into the home and see my daughter’s face in hers.” “She denies ever hurting the the door, officials said. The vic- both Ms. Arjun and Mr. If convicted, Ms. Arjun faces child,” Mr. Maltz said. “No one tim’s father instructed her to Narayan were taken into cus- up to 25 years to life in prison. saw that she did this crime and break down the door, officials tody, officials said. She was ordered held without

DIANA BROOKS/ASSOCIATED PRESS she made no admission to it.” said. The resident broke down Mr. Narayan is being held on bail and is scheduled to return Travelers at John F. Kennedy International Airport hit the ground The incident began to unfold the door with her brother’s as- charges of obstructing govern- to court on Sept. 2, officials Aug. 14 after reports of shots fired, later deemed to be false. on Friday when Ashdeep en- sistance and found the girl in mental administration. It was said. Riding to Remember 15 Years Later L.I. Crash Kills Five BY ZOLAN KANNO-YOUNGS four passengers when he lost control of the Subaru, police Five people, including a for- said. At about 9:35 a.m., Mr. Pi- mer staff member of New York nales drove over the grassy me- Gov. Andrew Cuomo, were dian, went airborne and hit a killed and seven others injured BMW and Mr. Martella’s Honda, in a multivehicle collision on police said. the Long Island Expressway Mr. Pinales and his sister, early Sunday, law-enforcement Patricia, 27, were both killed. officials said. Mr. Pinales’s 10-year-old son, Scott Martella, director of Christopher, was taken to Stony communications for Suffolk Brook University Hospital, County Executive Steve Bellone, where he later died, according was killed in Manorville when to a spokeswoman for the Suf- another driver in a Subaru folk County police. Ms. Pinales’s traveling eastbound lost control 3-year-old daughter and a 21- and crossed a median and hit year-old passenger were his vehicle, according to Suffolk brought to local hospitals with County police. nonlife- threatening injuries. Mr. Martella, 29 years old of Marvin Tenzer, 73, the Northport, had worked as an driver of the BMW and his aide to Mr. Cuomo from 2011 to three passengers were moved 2015, helping the governor with to local hospitals. A Suffolk Long Island issues. County police spokeswoman “Scott was always full of big said a passenger in the BMW, ideas to help solve the toughest Isidore Adelson, 81 of West- challenges of the day, and he hampton, died at Southside was deeply respected for his Hospital in Bay Shore. His wife, strong work ethic, candor and Helen Adelson, is in critical fighting spirit,” Mr. Cuomo, a condition at Southside.

EDUARDO MUNOZ/REUTERS Democrat, said in a statement. Mr. Martella’s fiancée, Shelbi MEMORIAL RIDE: Bikers taking part in the America’s 9/11 Ride headed to lower Manhattan on Sunday on the last leg of their annual Detectives are investigating Thurau, 29, was also brought to journey to commemorate the anniversary of the Sept. 11, 2001, attacks. The riders also traveled to Shanksville, Pa., and the Pentagon. whether Carmelo Pinales, 26 of a hospital with non-life-threat- Hicksville, was speeding with ening injuries, police said

spanned Harlem and Brooklyn near the scene of the shooting Investigators are searching The party was so crowded sidered life-threatening, but one Greater late Saturday and early Sunday, crouched between two cars with for the gunman. that some people believed the woman was in critical condition officials said. a silver gun found on the pave- —Mark Morales gunshots were fireworks, Capt. with injuries to her face and jaw, New York The woman, identified as ment nearby, police said. Brian Fitzgerald said at a news according to authorities. Odessa Simms, was watching a He hasn’t been charged in BRIDGEPORT, CONN. conference Sunday afternoon. Police said the victims range Watch card game at the Colonel connection to the killing, police Police have stepped up pa- in age from about 18 to 24. Charles Young Playground near said. House-Party Shooting trols in the area and are gather- The people who threw the West 144th Street and Lenox Hours later, a 30-year-old Results in 13 Injured ing information from witnesses party haven’t been identified by Avenue when she was struck by man was shot multiple times as A shooting at a crowded and from the victims. police. They had requested a two stray bullets, around 11:44 he celebrated his son’s birthday house party in Bridgeport early Police haven’t identified a permit from police ahead of the p.m. Saturday, police said. She in Brooklyn, police said. Daquan Sunday left 13 people wounded. motive, Capt. Fitzgerald said. gathering because they wanted NEW YORK CITY was struck in the base of the Spencer was with family at Bridgeport police believe two “We are going to have an ar- to sell alcohol there, but the per- back of her head and in the left Scarangella Park near Avenue V shooters opened fire on about rest in the very near future,” mit was denied, according to Separate Shootings side of her body, police said. She in Gravesend when he was shot 100 partygoers from behind Chief Armando J. Perez said. Chief Perez. Claim Two Lives was rushed to Harlem Hospital, by an unknown man 14 times some hedges surrounding the As of Sunday afternoon, all Police believe they charged A 61-year-old woman was where she couldn’t be saved, po- just after 1:30 a.m., police said. home’s backyard. It happened but five of the victims had been for alcohol anyway. They may shot and killed by stray gunfire; lice said. Mr. Spencer was taken to Coney around 1:30 a.m. Responding of- released from hospitals. Most of face criminal charges, Capt. she was one of two people killed Police later arrested Arnell Island Hospital, where he was ficers discovered what authori- the victims were shot in the Fitzgerald said. in a pair of fatal shootings that Hodgson 30, who was found pronounced dead. ties called a chaotic scene. legs. None of the injuries is con- —Associated Press

A18 | Monday, August 22, 2016 **** THE WALL STREET JOURNAL. PROPERTY MONDAY JOE MAJOR/ASSOCIATED PRESS DAVID BURNS/ASSOCIATED PRESS (2) Mourners with the casket of Yankel Rosenbaum on Aug. 21, 1991. Riots in Crown Heights 25 years ago were set off when a car in a The casket of Gavin Cato, the boy killed by a car in a motorcade, The Australian rabbinical student was stabbed in Crown Heights. rabbi’s motorcade hit and killed a 7-year-old African-American child. is carried outside St. Anthony’s Baptist Church on Aug. 27, 1991. Crown Heights, Now a Hot Market, Shakes Off Its Past ContinuedfrompageA15 whom retain a strong pres- ence there today. But in the past 15 years the racial makeup has begun to shift, with the percentage of blacks falling and the white propor- tion growing in Crown Heights and nearby neighborhoods. On Aug. 19, 1991, tensions between the area’s black resi- dents and Jewish residents erupted into violence after a car in a rabbi’s motorcade fa- tally struck Gavin Cato, a 7- year-old black boy. The acci- dent sparked three days of rioting, during which Yankel Rosenbaum, a 29-year-old The surging real- estate market has been fueled by falling crime rates.

Australian studying at a Ye- shiva, was stabbed to death. The black teen accused of kill- ing Mr. Rosenbaum was ac- quitted of murder but ulti- mately convicted of violating his civil rights after admitting to the stabbing. Today’s hot real-estate market has been fueled by falling crime rates. In 2015, there were 1,495 major crimes in the northern part of Crown Heights, a 75% drop from 1994 levels. “You see people jogging,

you see businesses opening PETER J. SMITH FOR THE WALL STREET JOURNAL up,” said Eon Griffith, a 38- Franklin Avenue is known as restaurant row, and rents have soared. ‘You see people jogging, you see businesses opening up,’ said one person who grew up in Crown Heights. year-old hotel operations manager who grew up in the Queens for real-estate-ser- taurant row of sorts. Between money enabled the business to high as $3,000 for a one-bed- Crown Heights. “Twenty-five neighborhood and once vices firm Citi Habitats. Easy 2009 and 2014, retail rents on move to a bigger place, where room apartment and $3,800 years later, if they don’t own couldn’t imagine sending his access to a number of subway the corridor rose by at least Mr. Roderick is adding a sepa- for a two-bedroom apartment, their residence, they may be daughter to school in the area. lines has also helped. 100% to a range of $65 to $79 rate Olympic weightlifting and according to some real-estate forced out due to skyrocketing Many factors have played a “Over the past five to 10 a square foot, according to powerlifting gym. agents. rents.” role in Crown Heights’ re- years, people have been buy- Brooklyn real-estate-services Median rents for all renters Those increases are a con- Although Stephanie Provi- bound. The gentrification of ing apartments at such a dis- firm CPEX Real Estate LLC. in north Crown Heights and cern for those who don’t al- dence, a St. Vincent native, nearby Park Slope and Pros- count to Park Slope,” said Mr. While rising real-estate val- neighboring Prospect Heights ready own their homes or came to Crown Heights eight pect Heights has spilled over Maundrell, whose firm is mar- ues can push out some busi- rose 36%, from $857 in 2000 have rent-stabilized apart- years ago, long after the riots, into Crown Heights. The keting a number of new devel- nesses, it actually helped Crow to $1,168 in 2014, according to ments, according to some she said she is worried about transformation of the once opments in Crown Heights. Hill CrossFit to expand, said New York University’s Furman community leaders. rents. Two years ago, her rent crime-ridden Prospect Park “And here, the park is still at co-owner Kurt Roderick, who Center. Median rents in the “Individuals have become rose by $300, forcing her to into an urban oasis and im- their doorstep, so to speak.” has been a Crown Heights res- south Crown Heights and Lef- victims of their own success find a roommate. provements at the nearby Crown Heights’ identity as ident for the past six to seven ferts Gardens area rose 31%, since they lived in Crown “Other folks want to come Brooklyn Museum also have a diverse neighborhood in years. The gym was bought from $949 to $1,241 for the Heights and helped to turn the in, and they’re jacking up the served as catalysts, said David transition also has attracted out of its lease at its first same period. Rents for mar- community around in its price,” said Ms. Providence, J. Maundrell III, executive vice independent Brooklyn busi- Crown Heights location be- ket-rate apartments in new greatest hour of need,” said 54, who was selling flowers at president of new-development nesses. Franklin Avenue cause the building was being developments in the general Rep. Hakeem Jeffries, a Demo- the spot of the car accident 25 marketing in Brooklyn and quickly has turned into a res- converted into condos. The Crown Heights area can be as crat whose district includes years ago.

line,” said Mr. Monahan. “They’ll What’s the need washers and dryers from a warehouse... it’s likely to be in Deal New Jersey.” —Emily Nonko

FLATIRON Office Portfolio Lures MIDTOWN Overseas Investor The Kaufman Organization Full-Floor Spaces has recapitalized a portfolio of Lure Office Tenants four Flatiron office buildings that A Times Square building has it has renovated in recent years. attracted new tenants because In 2014, the company pur- of its availability of modestly chased vacant buildings at 19 W. sized, full-floor office spaces. 24th St., 13 W. 27th St., 45 W. Handler Real Estate Organi- 27th St. and 119-125 W. 24th St. zation has owned and managed in partnership with Principal the office building at 561 7th Real Estate Investors, said Fre- Ave. for about 50 years, accord- dric Leffel, president of Kaufman ing to Chief Executive Scott Ga- New Ventures. lin. For the last two years leas- The company has since reno- ing activity has picked up in the vated the buildings and begun

company’s effort to reposition L-R: EVAN JOSEPH;leasing THE KAUFMAN ORGANIZATION office and retail space. the building, he said. Left, the building at 561 Seventh “Principal was looking for a Two companies recently Ave., which has signed new shorter-term investment over a signed leases for full-floor head- tenants; and 19 W. 24th St. few years,” said Mr. Leffel. “We quarters. Financial-services tech have recapitalized with a partner firm LiquidityBook will occupy are a company in transition... the of former manufacturing neigh- CBRE. price for industrial product rose who wants to own it for the 3,944 square feet on the sixth full floor speaks to our optimism borhoods in New York has Mindy Lissner, executive vice to $70.21 a square foot for the longer term.” floor next year. Oasis Children’s in where this company is going.” caused the New Jersey indus- president at CBRE, credits the second quarter, the highest re- China Orient Asset Manage- Services, an organization that Bernie Suarez, director at Oa- trial sector to boom through boom to demand from compa- corded sale price since 2010. ment Corp., a financial-services hosts summer camps, took sis, said the full-floor space was 2016. nies relocating from New York, The demand has led to an in- firm based in China, has come 3,944 square feet on the third “a nice add-in.” The bigger draw CBRE Group Inc., a commer- tax incentives offered by New crease in industrial development on as that long-term partner. floor and will move in later this was relocating from Brooklyn’s cial real-estate services firm, re- Jersey and the growth of the e- throughout the state. Since the The company has invested month. Asking rent for the Dumbo area. leased a report that found de- commerce industry. E-commerce fourth quarter of 2014, there about $60 million of equity in building is between the high “Our employees can’t afford mand for industrial space companies were responsible for has been 14.6 million square the office portfolio, said Roy $50s and low $60s a square to live in Brooklyn anymore,” Mr. outpaced the supply in the sec- nearly 35% of new leases in the feet of newly delivered space Chen, head of U.S. real estate foot, said Mr. Galin. Suarez said. “I wanted to make it ond quarter of this year. The second quarter, according to the along the New Jersey Turnpike for China Orient. “We’ve attracted companies easier for them and find a loca- availability rate in the state was CBRE report. corridor, according to Mr. Mona- “We think we can benefit who only need 4,000 to 5,000 tion with the easiest commute.” 7.2%, the lowest level recorded Companies that are used to han. Currently, only 1.3 million from this value-added real es- square feet but would like their —Emily Nonko since 2007. paying high industrial rents in square feet is available. tate as it finishes up leasing,” own floor,” Mr. Galin said. “To “It’s my 30th year in the in- the city have “no problem pay- Both Mr. Monahan and Ms. said Mr. Chen. find office space like that any- NEW JERSEY dustry, and I’ve never witnessed ing higher rents” for buildings Lissner expect demand to con- The investment marks China where in Midtown is a rarity.” as much tenant leasing velocity that are often superior to the tinue through this year. Orient’s 11th in New York since “We love the fact that it’s a Demand Is Surging asIhaveinthepast12 warehouses in New York, Ms. “With all the new apartment the company expanded into the full floor,” said Taylor Wielage, fi- For Industrial Space months,” said Thomas Monahan, Lissner said. development in New York, those U.S. two years ago, he said. nance chief at LiquidityBook. “We The continued gentrification executive vice president at The average asking sales residents will be shopping on- —Emily Nonko

THE WALL STREET JOURNAL. ** Monday, August 22, 2016 | A19 ARTS & ENTERTAINMENT A Documentary About Character-Building SEAN PRICE WILLIAMS/GRASSHOPPER FILM & 4TH ROW FILMS

BY STEVE DOLLAR Greene, opens Wednesday in New York. It is one of two new ate Lyn Sheil is one of films that explore the case. K New York’s most pro- “Christine,” a more straightfor- lific actors. Yet, after ward fictional film directed by roles in more than 30 indepen- Antonio Campos and starring dent features in the past eight Rebecca Hall, will be released years, she has never put herself in October. on the line as she does in “Kate “Robert wanted to get at the Plays Christine.” idea of her story being incom- The “Kate” of the film’s title plete and her being unknow- is Ms. Sheil, who is 32 years able—and the task of trying to old and lives in Manhattan. The know her being a futile one,”

woman she plays is Christine said Ms. Sheil, who also turns JOHN CLOUD/SARASOTA JOURNAL/ASSOCIATED PRESS Chubbuck, a Sarasota, Fla., amateur gumshoe. The per- Kate Lyn Sheil in ‘Kate Plays Christine,’ left, a documentary about Ms. Sheil’s struggle to portray anchorwoman Christine Chubbuck. television-news reporter who former conducts interviews Ms. Chubbuck, of WXLT-TV in Sarasota, Fla., is pictured above in July 1974, the month she fatally shot herself while on the air. in 1974 shot herself live on with Ms. Chubbuck’s former camera during a broadcast and colleagues, visits the gun shop whom he has known for 10 proach the character, risks had Chubbuck was said to be frus- isn’t so present in the film, later died. The incident, while where the reporter bought the years. to be taken. “The anger was trated with professional and which nonetheless offers nu- now obscure, has been cited as weapon and wears a wig simi- Still, he left much to dis- not false,” she said, “but con- romantic setbacks, but had a merous accounts of the real- an inspiration for the 1976 film lar to her long black hair. cover during the shoot. “I jured.” formidable presence. She life subject to balance Ms. and media satire “Network.” As Ms. Sheil gradually in- never could tell necessarily The movie becomes eerie at stood 6 feet tall with long Sheil’s earnest, if frustrated, “Was it a daunting idea to habits the role, she seems to where we were.” times, as when Ms. Sheil visits black hair and a deep voice. effort to uncover her. have that much focus on me, or lose herself in a hall of mirrors, Filmmaker Amy Seimetz, Ms. Chubbuck’s empty house “I could see her as one of “Christine’s story brings up a version of me? Yeah, it was,” leading viewers with her. “It’s who directed Ms. Sheil in the near a beach, or practices those people who would arm so much, when you talk to said Ms. Sheil, who not only kind of a magic trick,” said the 2012 indie thriller “Sun Don’t shooting at a gun range. The wrestle you for the next beer,” anyone there’s such a reac- portrays the suicidal Ms. Chub- actor, who kept Mr. Greene Shine” and the recent cable se- performer resisted the sunny said Gordon Galbraith, a for- tion,” said Mr. Greene, whose buck, but herself in the process guessing amid a multilayered ries “The Girlfriend Experi- resort atmosphere. “If it turned mer WXLT-TV news director 2014 film “Actress” likewise of becoming the character, re- performance of seesawing ence,” was initially surprised out to be ‘Kate’s Summer Vaca- who was on set when Ms. examined themes of perfor- searching the role on the emotions. by the actor’s nuanced volatil- tion,’ I could never show my Chubbuck shot herself. mance in a nonfiction setting. ground in Sarasota. “There is a constant back ity. “It’s not like, ‘Turn her face again,” she said. “The air She also could joke at her “It’s a broken mirror with a lot As the melodramatic film- and forth between Kate being loose, she’s crazy!’ ” Ms. had to be sucked out of it in own expense. Mr. Galbraith of refracted meanings.” within-a-film progresses to its in control and Kate being up- Seimetz said. “It’s incredible some way, and it had to get at said the 29-year-old Ms. Ms. Sheil could, at best, of- tragic end, Ms. Sheil appears to set,” said Mr. Greene, who out- how explosive she can be while depression…We were trying to Chubbuck made light of her fer only a reflection. “I felt a have a meltdown. lined the project in advance able to be calibrated. She was create an air of danger while virginity, nicknaming herself great deal of empathy for her,” The unconventional docu- with cinematographer Sean so precise.” being conscious of the fact.” “Pristine Buttocks.” she said. “But I didn’t feel I got mentary, directed by Robert Price Williams and Ms. Sheil, Ms. Sheil knew that, to ap- Before her suicide, Ms. That side of Ms. Chubbuck any closer to the real person.”

HEARD & SCENE At the Annual Apollo Benefit, Old Names Mix With New

WAINSCOTT, N.Y.—If you go to one party in the Hamp- tons over the summer, you might as well make it the an- nual benefit for the Apollo. Several years strong, it’s an event that still hasn’t lost its luster. This year’s fundraiser, which took place at Ron Perelman’s home, The Creeks, and raised around $5 million, featured perfor- mances by Ciara, Pharrell Williams, Joe Walsh, Gwen Stefani (with Blake Shelton for one song), Jon Bon Jovi, MARSHALL a crowd-pleas- HEYMAN ing set by Lio- nel Richie, and a last-minute closeout to the night by Usher, all backed by the Roots. “I have to go wash dishes and serve dessert,” said Mr. Bon Jovi, after he sang “Everyday People” and “Superstitious.” Among the guests were At the annual Apollo benefit, clockwise from above: Jack Nicholson and host Ron Perelman; Ron many of the regulars at this Meyer, Lorraine Bracco and Sandy Gallin; Kelley Phleger and Don Johnson; Lionel Richie and Usher; party over the years, includ- Blake Shelton and Gwen Stefani; Robert Kraft and David Tepper; Elaine Irwin and Jay Penske. ing Jack Nicholson and his son Ray, Ron Meyer, Don Johnson, Katie Holmes, An- drew Cuomo and Sandra Lee, Harvey Weinstein and Geor- gina Chapman, Colin and Alma Powell, John McEnroe and Patty Smyth, Jane Rosenthal, Mayor Bill de Bla- sio and Chirlane McCray, Da- vid Tepper, Christine and Steve Schwarzman, Alice and Tom Tisch, Sandy Gallin, and Charlie and Lauran Walk. Some newer faces in the room (though there weren’t many) included Chris Rock, Jay Penske and Elaine Irwin (who attended last year), Carnegie Hall’s Robert Smith, Thomas and Azteca Hamptons,” said Mr. Perel- liams. “I’m not as good as says it all, pretty much.” Henry with their daughter man of the handful of Apollo Dick was.” If anything, the evening Maya, and Jennifer Lopez, events he has hosted. “We’ve “Yes you are, and you’re wasabitmoreonmessage who left a little bit early, gottobreakthedividebe- better looking,” responded than perhaps it had been in

taking a pie in hand, no less. tween the rich and the poor Mr. Perelman. the past, especially last year, KEVIN MAZUR/GETTY IMAGES (7) As per usual, dinner was and the haves and the have- Ms. Stefani and Mr. Shel- when Pitbull performed with served buffet style (pasta, nots. And nothing can do ton performed “Go Ahead a few cheerleader-like “I am a product of the Mr. Richie said. “Now it’s a fried chicken, watermelon that like the arts.” and Break My Heart,” then backup dancers. Apollo,” added Mr. Richie. “If fierce 20 minutes.” salad, cornbread). Place He left Mr. Williams, who Ms. Stefani sang some of her Usher explained that the you can pass the Apollo test, Ciara, along with Messrs. cards at long picnic tables was standing in for absent own hits, like “Don’t Speak” Apollo acts he admired as a you can pass any test.” Rock, Perelman and Johnson, were straw fans, especially Apollo Chairman Dick Par- and “Hollaback Girl.” young man over the years Mr. Richie sang “Brick joined Mr. Richie onstage to useful should it get too hot sons, to handle the rest. Mr. Walsh sang “Life’s suggested a “legacy, that we House,” and just as it hit dance, at which point the inside the party barn, where “Pharrell is going to say Been Good.” “If I’d known I’d could potentially have one of midnight, “Easy Like Sunday power went out. the concert takes place. all the smart, nice stuff,” have to play this song for those opportunities. I was Morning,” before ending his “That was just the kind of “We’ve raised close to $25 said Mr. Perelman. the rest of my life, I one of those kids. And with- set with “All Night Long.” thing that would happen at million, all because of you “Man, you don’t have a would’ve written something out the Apollo, there would “When I wrote ‘All Night the Apollo,” Mr. Richie said, guys in this little barn in the teleprompter,” said Mr. Wil- else,” said Mr. Walsh. “That be no me.” Long” it was all night long,” once he got offstage.

A20 | Monday, August 22, 2016 **** THE WALL STREET JOURNAL. SPORTS

Heard On The Field ERIC GAY/ASSOCIATED PRESS Emotional Anthony Collects Third Gold Knicks star Carmelo An- thony became the first man in Olympic history to win three gold medals in basketball, and grew emotional in a television interview moments after the US beat Serbia, 96-66, to win the top prize in Rio. “I know this is the end; this is it for me,” he said on NBC, suggesting his international career, one that’s spanned four Olympics, has concluded. He then paused for 20 sec-

onds to collect his thoughts as SCOTT POLLACK he fought back tears—easily the most emotional public dis- play he’s had since joining the Giants and Jets Need to Hit the Pokémon Gym Knicks—explaining what the Olympic experience has meant to him. ContinuedfrompageA15 around the Jets’ facility in Flo- ery day. A level-14 trainer, he Austin hunting for Pokémon But the most popular game in “I committed to this in ’04 “People I see in Montclair rham Park, N.J., outside of “a simply drives by the PokéStop with a golf cart. And the Ari- the Giants’ clubhouse is some- — I’ve seen the worst, and I’ve [N.J.], or wherever, they’re lot of rats and birds and bugs.” at the MetLife Stadium sign zona Cardinals’ home field at thing even more social. About seen the best,” Anthony said, walking with their phones out But the team’s hotel is a abutting Route 3 in East University of Phoenix Stadium five years ago, long-snapper referring to the team’s disap- in front of them,” Herzlich different story. “It’s busy over Rutherford, N.J. is actually a gym, according Zak DeOssie began playing pointing bronze finish in Ath- said. “It’s kind of addicting.” there,” he said. “If you close “I don’t like to have it open to ESPN. “Catch Phrase” with some ens, before winning three con- If the game seems like a the app and open it back up, a lot while I’m driving, but I “The players over there are family and friends. The bat- secutive golds in Beijing, childish distraction for profes- literally like five or six will know [the Poké Balls are] pretty lucky,” Williams said of tery-powered hand-held device London and Rio. “And I stuck sional athletes who should be pop up around you. You won’t there,” said Wing, who the Cardinals. “I bet they’re then made its way into the Gi- with it; we stuck with it. And preparing for the looming 2016 even have to walk anywhere.” doesn’t even need to touch his excited about that.” ants’ facility, where it has re- I’m here today, three gold season, that’s kind of the point. Guard Dakota Dozier, whom phone to secure the capture. Sadly for the trainers on mained a fixture for players medals later.” The NFL preseason has always McDougle considers the top Beyond the physical dan- the Jets and Giants (not to be enduring the post-practice He also pivoted to explain come with plenty of downtime, trainer on the Jets’ roster, gers of being distracted by confused with their real train- cold tubs. howheviewsthestateofa and the regular season is still pointed out that the hotel has the game, trainers also run ers), MetLife Stadium isn’t a It’s like charades, only the divided country. “Despite ev- three weeks away. Besides, its downside. “There’s no the risk of exceeding the data gym, as McDougle learned be- competitors rely on verbal erything that’s going on in our many of these players were PokéStops,” he said, “so you limit on their cellphones. “I’ve fore the Jets’ preseason-open- clues rather than pantomime. country, we gotta be united,” born in the 1990s. The Pokémon run out of Poké Balls.” played once or twice, but it ing win over the Jacksonville Herzlich as well as offen- he said. “Representing our media franchise, which includes Typical. ranupmydata,”saidJets Jaguars on Aug. 11. “We were sive lineman Justin Pugh and country on the biggest stage cartoons, trading cards and a The logical next step was cornerback Marcus Williams. like, ‘Oh, we’ll go to MetLife Marshall Newhouse are among you can be on, America we’ll variety of videogames, has al- to hit the road. “I was out last Japanese gymnast Kohei and it will probably be a the better players on the Gi- be great again,” he said. ways been a part of their world. night and went to a couple of Uchimura reportedly ran up a breeding ground for Poké- ants, according to DeOssie, Anthony has been vocal in “When I was growing up, gyms and battled,” McDougle $4,900 phone bill while mon,” McDougle said. “We get who confidently refers to him- pushing for better relation- Pokémon was what I used to said of a visit to nearby Madi- searching for Pokémon at the there and it’s dead. We were self as the team’s best. Wing ships between communities watch,” said Jets cornerback son, N.J. “Went over there, hit Olympic Games in Rio de Ja- like, ‘We got a game, anyway. has been known to join in, but and law enforcement. Recently, Dexter McDougle. “That’s when some PokéStops, reupped my neiro. In the NFL, it isn’t just Let’s just focus on that.’” he’s usually focused on bigger he led a town-hall in Los Ange- the show was out and you had Poké Balls.” select Giants and Jets hunting McDougle insists that things, like finding some more les involving youths, police offi- the Gameboys and all that.” Giants punter Brad Wing for cartoons on busy high- Pokémon has brought the Jets Poké Balls on the way home cers, community leaders and McDougle, a level-23 trainer said he replenishes his ammu- ways. HBO’s “Hard Knocks” together, though he and his from work. several Olympic basketball (pretty good, not great), said he nition during his commute to series recently showed Los fellow defensive backs also “I like Pokémon better, but players. —Chris Herring hasn’t found many Pokémon and from the team facility ev- Angeles Rams receiver Tavon kill time playing dominoes. the guys like ‘Catch Phrase.’”

The Curse of the Jets’ Second Round Jets fans are famous for showing up least 2000 to not receive a single snap It’s been nearly 40 years since the to the opening night of the NFL Draft through his first two preseason games. Jets really hit a home run in the second- and showering their team with boos as Hackenberg already looks set to fol- round. In 1979, they picked sack-master soon as they make their first-round pick. low wide receiver Devin Smith (2015), Mark Gastineau, a three-time first-team But in recent years, it’s the pick made tight end Jace Amaro (2014), quarterback All Pro. The 1970s were actually good to on the second night of the draft that re- Geno Smith (2013), wide receiver Ste- the Jets in this regard as wideout Wes- ally merits a chorus of jeers. phen Hill (2012) and offensive lineman ley Walker (1977) and explosive tight end For nearly two decades, the Jets’ sec- Vlad Ducasse (2010) into the graveyard Richard Caster (1970) were also nabbed ond-round selections have been a collec- of Jets’ second-rounders. in round two. tion of unmitigated busts, inexplicable Granted it’s hardly a slam dunk for Cherry picking alternative draft picks reaches and injury-prone deadbeats NFL decision makers to land quality isn’t exactly fair. But the list of super- whose chief roles on the team were tak- players on the draft’s second day. But stars passed over by the Jets is enough ing space on the bench. the team’s record of just one hit in the to prompt another outbreak of boos. last decade—Michigan linebacker David Among the optimal picks bypassed by Harris in 2007—is so extraordinarily the Jets are stars Allen Robinson (2014), Take a Number hopeless that it makes sustained success Le’Veon Bell (2013), Alshon Jeffery all but impossible. (2012), Justin Tuck (2005) and Anquan Sometimes it seems the Jets have Boldin (2003). Though it’s too early to make any simply given up on the idea of cashing in This history of second-round busts lasting conclusions about the team’s sec- with their second-round picks. How else raises questions about the team’s han- ond-round pick in April’s draft, Penn State to explain the decision to select a kicker dling of Hackenberg. Perhaps another or- quarterback Christian Hackenberg, it’s fair (Mike Nugent) and a kickoff returner ganization could get away with keeping to say the Jets’ streak of whiffing looks (Justin Miller) in the second round in the a second-round pick tethered to the likely to continue. Heads were shaking same year (in 2005)? bench during his rookie preseason. when general manager Mike Maccagnan Beside Harris, you have to go all the But Jets fans likely see it as confir- selected Hackenberg, who many consid- way back to Bill Parcells’s tenure as gen- mation that yet another possible ered a college-football disappointment. eral manager in 1999 to find the last sec- difference-making draft selection has Four months on, the Jets’ rookie is the ond-round pick who turned into a solid been wasted. first second-round quarterback since at NFL player: guard Randy Thomas. —Michael Salfino

Geno Smith On Second Thought... Here are the Jets’ last 15 second-round draft picks and how they fared with the team—and one player the Jets passed on each year with that selection. YEAR/PICK NAME/POSITION OUTCOME THEY COULD HAVE HAD.. 2016 (51) Christian Hackenberg, QB* Can’t get on the field in preseason ? 2015 (37) Devin Smith, WR* Recovering from torn ACL Devin Funchess (41) 2014 (49) Jace Amaro, TE* Has problem catching the football Allen Robinson (61) 2013 (39) Geno Smith, QB* On the roster bubble Le’Veon Bell (48) 2012 (43) Stephen Hill, WR Cut two years ago Alshon Jeffery (45) 2010 (61) Vlad Ducasse, G Five career Jets starts Eric Decker (87) 2007 (47) David Harris, LB* Good pick None 2006 (49) Kellen Clemens, QB Replaced by Mark Sanchez Maurice Jones-Drew (60) 2005 (57) Justin Miller, DB 12 starts as Jet; primarily a KR Justin Tuck (74) 2005 (47) Mike Nugent, K Replaced by free agent kicker in ’08 Vincent Jackson (61) 2003 (53) Victor Hobson, LB Started without note for 4 seasons Anquan Boldin (54) 2002 (57) Jon McGraw, S Later traded for a 7th-round pick Michael Lewis (58) 2001 (49) Lamont Jordan, RB Decent production as backup RB Travis Henry (58) 1999 (57) Randy Thomas, G Serviceable starter None 1998 (56) Dorian Boose, DE 13 career Jets tackles Leonard Little (65) Source: Football-Reference *Still on Jets

LARRY FRENCH/GETTY IMAGES

SMALLBUSINESS BUSINESS B5 | WSJ.D B6 | MEDIA & MARKETING &B7 | CROSSWORD TECH.B8 | RIO 2016 B9, B10 Tyra Banks Ben-Hur Takes Team USA Goes to Stanford An Epic Spill Was Golden B-SCHOOLS | B3 BOX OFFICE | B7 RIO 2016 | B9, B10

© 2016 Dow Jones & Company. All Rights Reserved. **** THE WALL STREET JOURNAL. Monday, August 22, 2016 | B1 Pfizer Near $14 Billion Deal for Biotech

Medivation, which desired independent biotechs immune system in the fight After the breakup, some an- markets with world-wide sales treatment from Johnson & because it sells a leading pros- against cancer. alysts said Pfizer needed to do amounting to roughly $80 bil- Johnson called Zytiga. Xtandi, makes a leading tate-cancer drug. The acquisition would also more deals to add patent-pro- lion a year and growing more which Astellas Pharma Inc. also prostate-cancer drug, Medivation’s drug, Xtandi, further Pfizer CEO Ian Read’s tected drugs if that side of the than 10% annually, according sells, could be one of the top- already generates about $2 efforts to bolster what he re- company was to develop the to EvaluatePharma. selling cancer drugs by 2020, is much-desired firm billion in yearly sales and has fers to as the innovative side critical mass of revenue it Despite charging high according to EvaluatePharma. potential to more than double, of the company’s business. prices often surpassing But J&J is developing a new BY JONATHAN D. ROCKOFF according to analysts. Mr. Read has said Pfizer $100,000 a year, companies prostate-cancer drug that Pfizer has been seeking to would decide by year’s end Pfizer has been haven’t faced the challenges could pose a threat to Xtandi, Pfizer Inc. is nearing agree- expand its lineup of such on- whether to split into two, with seeking to expand securing reimbursement that according to analysts. ment to buy biotech Mediva- cology treatments. Xtandi one company selling fast- have limited sales of new Medivation was put in play tion Inc. in a move that would would give the New York drug growing brand-name drugs its lineup of drugs for other diseases. after French drug company add one of the crown jewels of company a beachhead in pros- like Ibrance and another sell- oncology treatments. Medivation is one of the Sanofi SA made an unsolicited the multibillion-dollar market tate cancer complementing its ing drugs that have lost patent few independent biotechs left proposal of $52.50 a share in for cancer drugs to Pfizer’s breast-cancer treatment protection. with a cancer treatment that is cash, which the biotech re- portfolio, according to people Ibrance, which is on track to Wall Street expected Pfizer would need to function on its already approved and selling jected in April, saying the of- familiar with the matter. be a blockbuster. would break up when it agreed own. well. CEO David Hung says he fer substantially undervalued The $14 billion all-cash deal Medivation’s drugs in de- to take over Allergan PLC in a ThenewsofPfizer’spoten- decided to found the company the company. could be announced as early velopment could also comple- $150 billion deal, but the two tial deal for Medivation was after watching a 28-year-old A bidding war resulted. If as Monday, one of the people ment Pfizer’s efforts to de- companies parted ways in reported earlier by the Finan- breast-cancer patient die dur- Pfizer’s offer wins, Medivation said. It would end months of velop combinations of cancer April, after the Obama admin- cial Times. ing his oncology fellowship. would fetch more than double bidding for San Francisco’s agents with so-called immuno- istration targeted the proposed Cancer is one of the phar- Xtandi has held its own the $6 billion it was valued Medivation, one of the most therapies, which deploy the combination with new rules. maceutical industry’s biggest against a rival prostate-cancer earlier in the year. SCOTT GRIES/INVISION/AP Viacom’s interim chief executive will be Tom Dooley, at right, shown in 2014 with Philippe Dauman, who has resigned as CEO. ViacomVeteran TriestoTurnPage BY JOE FLINT The fighting was far from over. Over the next two Viacom Inc. Chief Operat- months there were lawsuits ing Officer Tom Dooley was waged in two states, on-again, huddled in his office with off-again settlement talks and Chief Executive Philippe lots of insults exchanged be- Dauman late on June 16 when tween Viacom’s side and Na- he got an unexpected call from tional Amusements. Shari Redstone. Finally, on Saturday the two Ms. Redstone is president of sides announced a detente. National Amusements Inc., the Under the settlement, Mr. controlling shareholder of Via- Dauman will exit as CEO after com that earlier that day had a decadelong run and five new made a dramatic move to over- National Amusements-ap-

ALPHA ALUMINUM haul the media giant’s board pointed directors will join Via- An Alpha Aluminum plant in North Carolina in 2015. The company suspended production last month, putting 100 people out of work. with five new directors and was com’s board—including Ever- pushing to oust Mr. Dauman as source Energy Chairman CEO and chairman. The two Thomas May, who is expected China Crinkles Aluminum-FoilMakers sides were in a pitched battle. to take over for Mr. Dauman Nevertheless, she told Mr. as chairman after Sept. 13. Dooley she wanted him to be Just as Ms. Redstone indi- Imports of ultrathin wraps for food and other staples push aside most U.S. firms in the business the interim chief executive af- cated was her intention in that ter Mr. Dauman left, saying mid-June call, the interim CEO BY JOHN W. MILLER Aluminum Inc., first tried to diversify minum makers such as Alcoa Inc. and that she and her 93-year-old title will go to Mr. Dooley into heavier aluminum to survive. But in Novelis out of the commodity-foil busi- father, ailing mogul Sumner through Sept. 30—when the For decades, Camel cigarettes were July, it suspended production, putting 100 ness, JW Aluminum Co. of Goose Creek, Redstone, had faith in him, company’s fiscal year ends— wrapped with an ultrathin foil made at a employees out of work. The shutdown S.C., is the only domestic producer left people familiar with the call putting him in charge of an plant in Winston-Salem, N.C. Then, last leaves only one U.S. company still making specializing in light-gauge foil. said. Mr. Dooley would be a empire stretching from cable summer, the factory’s owner sold the fa- the kind of light-gauge foil used to wrap A few companies, including Reynolds curious choice as a change networks like MTV and Com- cility as part of a strategy to buy more of food, pharmaceuticals and other con- Consumer Products, which makes kitchen agent, given he has ties to Via- edy Central to the Paramount its foil from China. sumer staples. foil in Louisville, Ky., still have large mar- com dating back to 1980, but Pictures film studio. The first U.S. casualties of China’s dra- The U.S. market for all aluminum foils ket shares in niche markets, but even the she said he could “get Viacom The 59-year-old, a numbers matic ramp-up in aluminum production is valued at roughly $5 billion, and is now kitchen foils sold under grocery-store back to where it needs to be.” guy who speaks Wall Street’s lan- were smelters, a capital-intensive busi- 36%-supplied by imports, up from only names increasingly are made from foil that Mr. Dooley said yes and guage, has, along with Mr. ness that depends on low-cost energy. 16% in 2007, according to the Aluminum is imported from China, say distributors. hung up. He then relayed the Dauman, been one of Mr. Red- Now, Chinese imports are claiming a big- Association, an industry group. The lead- Unlike the American steel industry, gist of the conversation to Mr. stone’s closest advisers. The pair ger part of the aluminum market, supply- ing supplier is China, whose shipments of which also is facing a flood of Chinese Dauman. “If that’s her plan, helped orchestrate the acquisi- ing the wraps for potato chips, pill pack- foil to the U.S. have risen almost 10-fold, imports but is bigger and has much more that’s her plan,” Mr. Dauman tions of Paramount and CBS Corp. ages and yogurt. to 265 million pounds, in the past decade. political clout, the aluminum industry said, according to a person fa- Mr. Dooley, a Brooklyn, N.Y., Camel’s original foil supplier, Alpha With tiny Alpha’s exit and bigger alu- Please see FOILED page B2 miliar with the call. Please see VIACOM page B2 The Internet of Things Isn’t About Things—It’s About Services veryone is waiting for and Comcast Corp., to name On June 23, Comcast said it as isolated devices, rather E the Internet of a few. One recent entrant: would acquire a unit of than as components of a Things. The funny the Brita unit of Clorox Icontrol Networks Inc., larger service. Alphabet thing is, it is already here. Corp., which just introduced which helps set up smart didn’t respond to a request Contrary to expectation, a Wi-Fi-enabled “smart” homes for clients. The com- for comment. though, it isn’t just a bunch pitcher that can reorder its pany prides itself on being When internet-connected of devices own water filters. “do it for you” instead of devices are considered a that have a Uber and SolarCity are “do it yourself,” as are most service, consumers don’t chip and an interesting examples. Both home-automation systems, have to worry about inte- internet rely on making their assets says Chief Marketing Officer grating gadgets. Focusing connection. smart and connected. In Letha McLaren. on services also helps ven- The Uber’s case, that is a smart- Understanding that most dors clarify their offerings. killer app phone in the hands of a people want to solve prob- “You don’t think of Uber KEYWORDS of the In- driver for hire. For Solar- lems without worrying as connected cars, you think CHRISTOPHER ternet of City, the company’s original about the underlying tech- of it as transportation as a MIMS Things business model was selling nology was crucial, she DAVID PAUL MORRIS/BLOOMBERGservice,” NEWS says Ajay Kulkarni, isn’t a electricity directly to home- says. “Early on, we found Alphabet’s Nest unit makes smart thermostats and smoke alarms. co-founder and chief execu- thing at owners rather than solar that if you called what we tive of Iobeam, whose tech- all—it is services. And they panels, which requires do ‘home automation,’ peo- anchored it on home secu- Contrast that with Al- nology helps device makers are being delivered by an knowing how much electric- ple liked it but they would rity, then people knew they phabet Inc.’s Nest unit, analyze the data their prod- unlikely cast of characters: ity a home’s solar panels not spend money on it,” Ms. need to have that and would which sells a smart thermo- ucts generate. Uber Technologies Inc., So- are producing. McLaren says. “But if you spend $35 to $45 a month stat and smoke alarm, both Artificial intelligence can larCity Corp., ADT Corp., Here is another example: called it ‘peace of mind’ and on it.” of which operate primarily Please see MIMS page B6

B2 | Monday, August 22, 2016 ***** THE WALL STREET JOURNAL. INDEX TO BUSINESSES BUSINESS NEWS

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.

Actavis...... B3 General Motors...... B5 Packaging...... B2 ADT...... B1 Goldman Sachs Group Paramount...... B7 Aetna...... B5 ...... B5,C2,C3 PCM Capital Partners.B7 HP Prepares Long-Term Wagers Alcoa...... B1 Google...... C1 Permian Resources.....C1 Allergan...... B1 Guggenheim Petrobras...... A7 BY DON CLARK will generate $2 billion to Alpha Aluminum...... B1 Investments...... C6 Pfizer...... B1,C6 Alphabet...... C1 Guggenheim S&P 500 Pioneer Natural $2.3 billion in free cash flow Amazon.com...... C1 Equal Weight Resources...... B3 Growth has always been for the fiscal year ending in Apollo Global Financials ETF...... C6 Pokémon...... B6 golden in Silicon Valley, and October. Management...... C2 Guggenheim S&P 500 Polaris Venture Partners App Annie...... B6 Equal Weight Real ...... C2 HP Inc. hopes to prove it Toni Sacconaghi, an ana- Apple...... B6,C1 Estate ETF...... C6 PowerShares S&P 500 isn’t the only definition of lyst at Sanford C. Bernstein, Astellas Pharma...... B1 Happycall...... B5,C3 High Dividend Low success. wrote in a note that HP’s AT&T...... C6 Hewlett Packard Volatility UCITS ETF C6 Avant...... C3 Enterprise...... B2 Procter & Gamble...... C6 Analysts expect the for- current 12.4-cent quarterly Avera McKennan HP...... B2 Prosper Marketplace...C3 mer Hewlett-Packard Co. dividend amounts to about Hospital...... B8 Qiming Venture IDG Capital Partners..B6 printing-and-personal-com- 30% of free cash flow, so Baidu...... B6 Intel...... B2 Partners...... B6 Bank of America....C2,C3 International Business Randstad Holding...... B5 puter business to continue a could be increased. Mr. Sac- Baofeng Group...... B6 Machines...... B2 Red Letter recent pattern of revenue de- conaghi said HP’s 3.4% divi- BlackRock...... C6 Communications...... B8 International Textile clines when it dend yield is already among Book In A Box...... B5 Group...... C2 Reynolds Consumer BreitBurn Energy iShares Edge MSCI Products...... B1 THE WEEK reports quar- the highest of publicly held Partners...... C1 Minimum Volatility RingDNA...... C1 AHEAD Bristol-Myers Squibb..C6 RXM Creative...... B6 terly financial companies. Car Trim...... B8 USA Index ETF...... C6 Sanofi...... B1 results on iShares Edge MSCI Still, shrinking revenue re- Centerbridge Partners C2 Minimum Volatility Scopely...... C1 Wednesday, mains an issue, particularly Chesapeake Energy.....C6 SolarCity...... B1 USA Index ETF (CAD- China Everbright...... B7 State Street Global the latest evidence of waning for HP’s printing business. Hedged)...... C6 CIFC...... C6 JD.com...... B6 Advisors...... C6 demand for those products. Steven Milunovich, an ana- Clorox...... B1 Steel Partners Holdings Yet HP’s shares are up 22% lyst at UBS Securities, pre- Coca-Cola...... C6 Johnson & Johnson ...... C3 Comcast...... B7 ...... B1,C6 Summit Partners...... C2 on the year, outpacing the dicts HP will report a 15% Cross River Bank...... C3 Juicero...... C1 Supercell...... B6 broader stock market and third-quarter decline in reve- CRU Group...... B2 JW Aluminum...... B1 Tencent Holdings...... B6 Devon Energy...... B3 Kimberly-Clark...... A1 Tiger Global other mature tech companies nue from its supplies busi- Didi Chuxing Technology Lazard...... C3 Management...... B6 such as Microsoft Corp., Intel ness compared with the ...... B6 LegalZoom...... C1 Time Warner...... B7 Corp. and International year-earlier period, with Dignity Health...... B8 LendingClub...... C3 Uber Technologies.B1,B6 Dingsheng Aluminum MediaNews Group...... B5 UCAR...... B6 Business Machines Corp. printer sales down 9%. Group...... B2 Medivation...... B1 UnitedHealth Group....B5 HP’s stock-market cachet In all, he expects quar- EastBridge Partners Meitu...... B6 Universal Pictures...... B7 ...... B5,C3 Merck...... C6 Valeant Pharmaceuticals is linked to its generation of terly revenue to fall 8% to eLead...... B8 Metro-Goldwyn-Mayer International...... B3 cash, which has fueled out- $11.4 billion and net income Elevate Credit...... C3 ...... B7 Vanguard Dividend size dividends and the poten- to drop 23%. ES Automobilguss...... B8 Microsoft...... C1 Appreciation ETF...... C6 tial of share buybacks that Mr. Weisler hopes to spur Eversource Energy...... B1 Modern Automotive Vanguard High Dividend Exco Resources...... C2 Performance...... B5 Yield ETF...... C6 could further boost its stock growth by building a fran- F.A.B. Partners...... C6 Monster Worldwide....B5 Viacom...... B1,B7 price. Highlighting those at- chise beyond desktop-ori- Facebook...... C1 National Amusements Volkswagen...... B8 Fenway Sports Group.B7 ...... B1 Warner Bros...... B7 tributes for investors was one ented inkjet and laser print- Financial Services Select Neuberger Berman...... C2 WisdomTree motivation for separating the ers toward the bigger copying Sector SPDR Fund....C6 Niantic...... B6 Investments...... C2 company from the more and printing systems that Focus Financial Partners Novelis...... B1 WL Ross...... C1 ...... C2 Onion...... B6 Xiaomi...... B6 growth-oriented entity now serve entire departments. Foxconn Technology....B6 Oracle Flexible Zoetis...... B3 known as Hewlett Packard In a longer-term bet, the Enterprise Co., said Dion company has announced Weisler, HP’s chief executive, plans to enter the newer INDEX TO PEOPLE in a recent interview. market for 3-D printers. The original HP, a technol- In PCs, Mr. Weisler said, Ackman, William...... B3 Deignan, Mary Ann.....C3 Matznick, Michael...... B5 ogy pioneer founded in 1939, HP plans to focus on profit- Adomat, Christoph.....B8 Dooley, Tom...... B1 Milunovich, Steven.....B2 had developed finely tuned able segments such as high- Al-Bassam, Nizar...... C6 Faber, Nathan...... C2 Mittal, Lakshmi...... C2 Ariburnu, Dalinc...... C6 Faissola, Michele...... C6 Montagnese, Rob...... B8 practices to monitor sales RICK WILKING/REUTERS end gaming systems and pre- Banks, Tyra...... B3 Falk, Tom...... A10 Moran, Matt...... C2 and profit, said Cathie Les- HP CEO Dion Weisler, above at last year’s Consumer Electronics mium laptops while avoiding Belden, William...... C6 Fleck, David...... B8 Obront, Zach...... B5 jak, HP’s chief financial offi- Show, said cash flow from the business remains very strong. low-margin, me-too products Berg, Geoff...... C2 Gkoutzinis, ApostolosA2 Orlikoff, James...... B8 Papa, Joseph...... B3 cer. Putting equal attention such as low-end tablets. Blitzer, David...... C6 Gottung, Liz...... A10 to the balance sheet and Ltd.—gets most of its reve- profit comes from printing, Some progress emerged in Boston, Scott...... A1 Hanelt, Peter...... B8 Pearson, Michael...... B3 Botarel, Mihai...... B6 Henry, John W...... B7 Peregrine, Michael...... B8 cash flow “is new muscle for nue from sales of those primarily sales of ink and the second quarter. Market Read, Ian...... B1 Bremer, Emily...... B5 Herendeen, Paul...... B3 almost everybody in the products. That market has toner that generate a steady researcher International Redstone, Shari...... B1 Bryant, Kobe...... C1 Hichilema, Hakainde..A8 Redstone, Sumner...... B1 company,” she said. been shrinking, but cash flow of cash. Data Corp. in July estimated Burr, Richard...... A5 Hobbs, Michael...... B5 Rees, Ken...... C3 Not that Mr. Weisler isn’t flow from the business re- The dynamics have en- HP’s global quarterly ship- Byrne, Matthew...... B5 Hoffman, David...... C6 Rosenbluth, Todd...... C6 Carey, Chris...... B5 Hosseinzadeh, Shaia...C2 laying plans to get HP grow- mains very strong, Mr. abled HP to pledge to inves- ments rose 5.1%, despite a Rosiello, Robert...... B3 ing again. But he said the Weisler said. One reason is tors that it will return 50% 4.5% drop in the total mar- Chattergy, Vijoy...... C2 Hsieh, Tony...... B3 Ross, Deborah...... A5 Coben, Craig...... C3 Hung, David...... B1 Ross, Wilbur...... C1 company’s business creates that HP takes in revenue to 75% of its free cash flow— ket. In the U.S., shipments Cook, Tim...... C1 Klugel, Allison...... B3 Rue, Neil...... C2 financial breathing room to from customers significantly the amount remaining after rose 12%, IDC said. Cottrell, Laura...... B5 Korn, Brian...... C3 Sacconaghi, Toni...... B2 place bets that may take faster than it pays suppliers capital expenditures—to “I’m interested in Dauman, Philippe...... B1 Lesjak, Cathie...... B2 Stahl, Michael...... B5 years to pay off. of components to build the shareholders in the form of growth,” Mr. Weisler said. David, Glenn...... B3 Lin, Victor...... C6 Stibel, Bryant...... C1 Dean, Lloyd...... B8 Loftis, Curtis...... C2 Wensheng, Cai...... B6 HP—the second-largest PC systems it sells, he said. dividends and buybacks. The “But I’m much more inter- Dean, Nathan...... B8 Lungu, Edgar...... A8 Yellen, Janet...... C6 maker, behind Lenovo Group More than half of HP’s company has estimated it estedinprofitablegrowth.”

took two more weeks. under a new clause, Mr. Dooley VIACOM Tale of Tumult In a statement, Mr. Dauman can exit the company prior to Viacom's stock has been a roller coaster during drama with said the new agreement “will Sept. 30 and still receive his orig- Sumner Redstone's National Amusements. give the company and its em- inal severance package. ployees the best opportunity Continuedfromthepriorpage $50 June 17 “I love the place. I’ll do any- native and father of five who to continue a smooth evolu- thing I can to make the com- Feb. 9 Third-quarter loves country music and has tion into the future.” He added pany better,” Mr. Dooley said in New chairman earnings forecast an interest in meditation, is in is lowered that he is “delighted Tom has an interview. He recognizes 45 Dauman defends the running for the permanent election as Viacom been appointed interim CEO.” that the company’s cable net- CEO job. His task is to show results disappoint Mr. Dauman, who was one of works may not all survive in the the newly constructed board the highest-paid chief execu- cable TV bundle over time, but he can break from the past— 40 tives in the country for the believes that there will be busi- despite being part of a man- past decade, has an exit pack- ness models to support them. Aug. 19 agement team that has over- ASSOCIATED PRESS age valued at $72 million. “We have to begin dealing seen Viacom’s slide, with Tom Dooley Sumner Redstone Mr. Dooley first joined Via- with consumers on a one-to- appointed shrinking viewership at its ca- 35 May 20 com in 1980 and has been part one level,” Mr. Dooley said. interim CEO ble networks and poor box-of- Sumner Redstone to change their thinking about of every twist and turn in the He was involved in Mr. fice results for Paramount. removes Dauman and the need for a leadership media company’s story since Dauman’s recent efforts to court At least one of Viacom’s 30 Abrams from trust change, according to people then. He and Mr. Dauman left an investor for Paramount, an new board members is already familiar with the matter. in 2000 to start a private-eq- arrangement the incoming Jan. Feb. March April May June July Aug. sold on Mr. Dooley. Mr. Dauman saw the writ- uity firm specializing in media board has agreed to review if THE WALL STREET JOURNAL. “He’s a terrifically talented Source: FactSet ing on the wall and had his and telecom investments after such a deal is on the table be- executive,” said Kenneth Lerer, lawyers reach out to the Red- Viacom acquired CBS for $37 fore Mr. Dauman departs. a venture-capital investor who ter he dies or is declared inca- on the list of directors to be re- stone legal team to explore a billion. The duo returned in Some former Viacom execu- has known Mr. Dooley for pacitated, the two men sued in moved. But his path to becom- settlement. That channel 2006. The next year Mr. tives question whether Mr. about 20 years and is one of Massachusetts to be rein- ing CEO was still foggy at best. didn’t yield real progress, but Dooley was appointed CFO and Dauman’s right-hand man for the five new Viacom directors. stated. They argued Mr. Red- Viacom’s board had others eventually did. he became COO in 2010. the past decade is the right “He’ll take out any uncertainty stone was no longer mentally staunchly defended Mr. A key meeting took place Mr. Dooley’s campaign to have choice to lead the company into that exists.” competent and was being ma- Dauman despite a 46% drop in on the lawn of Mr. Lerer’s interim removed from his CEO ti- the future, especially given the Until a few weeks ago, Mr. nipulated by Ms. Redstone. the stock over the past two Quogue, N.Y., residence on tle will begin this week with exodus of creative talent that Dauman and Viacom were de- She denied that charge. years. But when Viacom low- Aug. 7. Over muffins, Messrs. meetings with staff and board has plagued the company. termined to fight the Red- Then in June, after National ered its third-quarter earnings Lerer and Salerno and invest- members to map out a strategy, “I get a lot of feedback stones. When he and fellow Vi- Amusements sought to replace forecast in June because of ment banker Aryeh Bourkoff— people close to him said. Mr. from people at the company. I acom director George Abrams the five Viacom directors, the me- the dismal performance of the who arranged the get-to- Dooley’s exit package calls for know the frustration. We have were removed in May from the dia company’s lead independent Paramount movie “Teenage gether—reached an accord, him to receive three times his a lot to do,” Mr. Dooley said. trust Mr. Redstone established director, Frederic Salerno, sued in Mutant Ninja Turtles: Out of people familiar with the gath- base salary and bonus if he —Joann S. Lublin to oversee his controlling Delaware to block the move. the Shadows,” board members ering said. Negotiations and doesn’t ultimately succeed Mr. and Steven Perlberg stakes in Viacom and CBS af- Notably, Mr. Dooley wasn’t including Mr. Salerno started final approval from all parties Dauman as chief executive. Also, contributed to this article.

efit from Chinese tax policy. is the hardest hit, according to FOILED China applies a 15% value- industry experts. At the start added tax rebate on exported of this year, only two special- foil, and a 15% duty on raw ized producers remained: JW Continuedfromthepriorpage aluminum. Chinese producers Aluminum, which has plants in hasn’t been as vocal about tar- deny the charge made by South Carolina and three iffs. many U.S. producers that they other states; and the now- Lured by a rich and open get unfair subsidies or dump closed Alpha Aluminum in market, Chinese companies their metal in the U.S. Winston-Salem. JW Aluminum such as Zhenjiang-based Among contracts that have declined to comment. Dingsheng Aluminum Group been lost to foreign Chinese Alpha’s mill was built by have bulked up their capacity. suppliers are those for some cigarette maker R.J. Reynolds For Dingsheng, the U.S. has of the U.S.’s best-known con- Tobacco Co. in 1960, and sold become a critical part of its sumer brands, including to Alpha last year. Faced with business. Guo Yu, a manager Wendy’s Co. and Capri-Sun, competition from Chinese im- at a Dingsheng subsidiary, said according to foil distributors ports, Alpha began to diversify the U.S. was appealing because in favor of heavier aluminum its buyers tend to be larger products. But last month Al- companies, and orders are Only one U.S. firm pha suspended operations, and much bigger than in other still makes the kind is looking for outside inves- markets such as the Middle tors, its owners say. East or India. of light-gauge foil Robert Gamba, who re- A combination of govern- used to wrap items. cently resigned as Alpha’s ment help and a buildup of chief executive, said margins ALPHA ALUMINUM consumer culture has boosted at the 24-million-pounds-a- Primary Aluminum Ingots at Alpha Aluminum. The company suspended production in July. Chinese foil capacity to 3.7 and salespeople. year plant had been consis- million tons a year from A spokesman for Wendy’s tently squeezed by imports, An Oracle spokesman de- cheap and usually pretty good Mr. Lent says he would “ob- 250,000 tons in 2004, and foil said the chain’s hamburger which are 20% less expensive clined to comment. quality,” says Howard Lent, viously prefer to buy all Amer- consumption to 2.4 million wraps are made from paper than his products. “Buyers are China’s cheaper prices be- the 78-year-old president of ican,” but domestic suppliers tons in 2014 from 594,000 “mainly sourced from North always bringing up the prices came impossible to resist for the family-owned, 18-person can’t always give him the re- tons in 2005, according to America” and foil from Asia. A they can get in China,” he said. Alufoil Products Co. Inc., a company, which now sources quired specifications. “I get U.K.-based market researcher representative for Kraft Heinz Alpha says an important Long Island maker of alumi- 90% of its aluminum rolls from told ‘no’ too often in this CRU Group. Co., owner of the Capri-Sun factor in its closing the North num foil and once an Alpha abroad, up from 40% a decade country. In China, when I ask In addition to having access juice brand, declined to com- Carolina plant was that the customer. ago. Twenty percent of its for something, the answer is to low-cost electricity from ment. previous owner, Oracle Flexi- “A couple of years ago, I supply now comes from China, always ‘yes.’ ” new Chinese power plants, The thin, flexible packaging ble Packaging Inc., overstated started buying much more up from a marginal amount a —Junya Qian aluminum producers also ben- foil that is used to wrap food the value of assets. from China, because it was few years ago. contributed to this article. THE WALL STREET JOURNAL. **** Monday, August 22, 2016 | B3 BUSINESS NEWS Valeant to Tap New CFO, As Shake-Up Continues

BY VIPAL MONGA miliar with the matter. Mr. Herendeen will leave Valeant Pharmaceuticals Zoetis, a company he came out International Inc. is expected of retirement to join two years to announce it has hired Paul ago. He shepherded the com- Herendeen as its new chief fi- pany through cost cuts, acqui- nancial officer, luring the ex- sitions and a brush with activ- ecutive away from animal- ist investor William Ackman, health giant Zoetis Inc., who bought into Zoetis in according to people close to 2014. the companies. Mr. Ackman is also an in- Mr. Herendeen, 60 years vestor in Valeant and a board old, would succeed Robert member, but the people said

Rosiello, who will remain with BRYAN ANSELM FORhe THE WALL STREET JOURNAL didn’t speak directly with the Canadian pharmaceutical Paul Herendeen Mr. Herendeen about the company as head of corporate move. development and strategy, ac- set by months of turmoil. In Mr. Herendeen is a veteran cording to the people. April, it named Joseph Papa, a of the drug industry and was The hire, expected to be veteran drug-industry execu- also CFO of drugmaker War- announced Monday morning, tive, as its chairman and chief ner Chilcott PLC, which he continues the shake-up at the executive, replacing longtime helped sell to Actavis Inc. in embattled drugmaker. chief Michael Pearson. 2013. Valeant named a new general Mr. Herendeen is expected On Sunday evening, Zoetis counsel earlier this month, to officially join the company announced that Glenn David, expanded its executive com- Monday, following a summer- the company’s senior vice mittee and gave some of its time interview process that in- president of finance opera- senior executives bigger cluded lengthy conversations tions, had been named execu- roles. with Valeant’s Mr. Papa and tive vice president and CFO, The company has been be- Mr. Rosiello, said a person fa- taking over for Mr. Herendeen. NICK OXFORD/REUTERS The price of oil has whipsawed. Above, an energy installation in Oklahoma in 2015. ADVERTISEMENT Focus on Franchising ShaleDrillersTiptoeBack To advertise: 800-366-3975 or WSJ.com/classifieds

Katzenberg, an energy analyst others sold off around the Return to oil patch FRANCHISE OPPORTUNITIES with Robert W. Baird & Co. same time, according to data makes some energy “This higher activity level from the Commodity Futures experts nervous as may be premature, in my view, Trading Commission. and probably keeps a cap on Even knowing that addi- crude prices rise how high oil prices can go.” tional oil production could This summer the U.S. push down the price of oil, op- BY ERIN AILWORTH oil price has whipsawed timistic U.S. producers have AND TIMOTHY PUKO from more than $50 a barrel started to drill again, rede- in June to below $40 earlier ploying more than 70 rigs this As the price of U.S. crude this month. In the past two summer, with a lot more idled       marches back toward $50-a- weeks it has risen more than equipment coming back online   barrel territory, several big 20%, to a recent $48.22 a soon. That is because few ex-        shale drillers are tiptoeing barrel. pect the price to return to a   ! back into the oil patch, and Oil storage tanks around low near $26 seen earlier this       " " #  $ that is making some energy the country already are brim- year.     %&'(  experts nervous. ming with more than 521 mil- At least 10 shale companies,   )* Devon Energy Corp., Pio- lion barrels of crude, a 14% in- including RSP Permian          neer Natural Resources Co. crease over last year, Inc. and Newfield Exploration    and other prolific shale pro- according to federal data. But Co., recently boosted their          ducers are telling investors as the price rises, producers budgets by $1.1 billion so they      that this fall they will pour can’t seem to resist pumping could tap new wells, according         more money into drilling new more despite the glut. to Jefferies Group LLC.       wells. The burst of activity Many have cut costs so Devon is boosting its 2016  !      shows the resilience of Ameri- deeply that they can turn a spending by 20% to as much    can energy companies that profit when oil trades around as $1.3 billion, with plans to managed to survive oil’s $50. That is why a contingent add up to seven rigs in Okla-  "       plunge from more than $100 a of investors and analysts now homa and Texas. Chief execu-    #  $  barrel in June 2014 to less see that price as a ceiling for tive Dave Hager said the com- %  & !'&  $   than $30 earlier this year. But the market. pany will re-evaluate if prices   the burgeoning ramp-up “Being at $50 or $52 was dive again. ($$()*+,!*!-. #)- /!!*-0' threatens to cut the re- probably the worst thing ever Pioneer, one of the biggest $     "  )+ $#*  cent rally to $50 off at its for oil,” said Ben Ross, a drillers in West Texas,   $#* ( "  )' knees. commodities portfolio man- bumped up its budget by 5%, Investors are afraid there is ager at Cohen & Steers Inc., to $2.1 billion, and plans to        little room in the market for which manages $52 billion in put five rigs back to work,            all the new crude that is about assets. starting with one in Septem- to be unleashed by companies Mr. Ross—a long-term bull ber. The new oil will help feed restarting their operations in on oil—sold when crude Pioneer’s output projection FRANCHISE OPPORTUNITIES Texas and Oklahoma. reached $50 earlier this sum- that it can pump up to 17% “I do worry,” said Daniel mer. He wasn’t alone. Many more in 2017. SHOWCASE YOUR FRANCHISE      ! "!#$ Model. CEO. And a Teacher, Too. IN OUR UPCOMING SECTION:      FOCUS ON FRANCHISE:         BY DAHLIA BAZZAZ FOOD/RESTAURANTS  For two weeks next May, M.B.A. students at Stanford Issue Date: October 6    University will be taking tips Close Date: Sept 29    in personal branding from the former host of “America’s Next   Top Model.” Tyra Banks is Bonus distribution provided at Franchise Expo West in Denver slated to make her teaching (Oct 6-8). debut at the school as a guest Whet the appetite of your target lecturer, co-teaching a class on audience with a special section that creating and protecting a per- features trends and insights from sonal brand. Food and Restaurant franchises of every flavor and form. Some 25 graduate students       will receive instruction from Current restaurant franchisors and those interested in the industry       ! "#$ Ms. Banks on how to harness look to The Journal for insights and  %   &  "'  all forms of old and new me- advice, making it the perfect place dia to showcase their to reach them with your message  ( )  *  " strengths. The former Victo- or investment opportunity.  +  , "    -./ ria’s Secret model and chief The Wall Street Journal is #1 in delivering the affluent with %&& '(()*+')++,+ -. /0102 311-14.%567018)6-9 executive of TYRA Beauty will personal income $200,000+, and also deliver tips on handling liquid assets averaging nearly $1 press exposure as a business million. leader. The first assignment PARAS GRIFFIN/GETTY IMAGES FOR 2016 ESSENCE FESTIVAL   for the class, “Project You: Tyra Banks is the chief executive of TYRA Beauty. To advertise,    Building and Extending your contact Roy Oteo at: Personal Brand,” asks students logg School of Management. former producer for “The to create a short video intro- Notable students are making View” and “Good Morning (214) 640-7847         ducing both themselves and star turns at B-schools, too. In America.” [email protected]         the vision for a brand, accord- the wake of a doping ban, ten- Ms. Kluger approached Ms.  ! "    #  $ % ing to the official course de- nis player Maria Sharapova Banks with the idea of teaching  &  #  $  ! % scription. enrolled in an executive-edu- a short course after seeing her Sources: 2012 MMR A uent Survey, HHI $100K+, #1 in personal income $200K+ Ms. Banks, 42 years old, cation course at Harvard Busi- speak at a recent Stanford among all reported titles.    said her teaching style will be ness School this summer. Ms. event. During her talk, Ms. Erdos & Morgan, Purchase Influence in American Business, 2014 & 2014 IPSOS    engaging and fun, but tough: Banks herself completed an Banks shared anecdotes about AFFLUENT STUDY, HHI $100K+; Q2 2015 AAM statement    “If I see somebody not paying HBS executive-education pro- her transition into entrepre- attention, I’m gonna call on gram in 2012. neurship, which included cold-      them.” In June, rapper LL Cool J calling CEO Tony Hsieh of on- She added that she makes it and National Basketball Asso- line shoe and clothing company her goal while speaking to col- ciation players Pau Gasol and Zappos for guidance about how lege-aged audiences to keep Chris Paul attended a four- to start her own company. them off their phones, unless day course at HBS on the “I was mesmerized,” said it is to “tweet something I’ve “Business of Media, Enter- Ms. Kluger, who teaches said.” tainment, and Sports.” In that courses in leadership and Celebrity sightings have be- course, actor Channing Tatum communication. “She’s a natu- come increasingly common on participated as a “live case” ral.” Ms. Kluger and Ms. Banks the campuses of the nation’s study. will spend the next few                top business schools. In 2000, Ms. Banks is planning the months planning the details of              © 2016 Dow Jones & Company, Inc.      ! Oprah Winfrey taught a “Dy- course with co-instructor Alli- the course, which will be avail- !        "  "   "   #   All Rights Reserved. namics of Leadership” class at son Kluger, a management able for registration on a first- Northwestern University’s Kel- professor at Stanford, and a come, first-served basis. B4 | Monday, August 22, 2016 THE WALL STREET JOURNAL.

ADVERTISEMENT Focus on Franchising To advertise: 800-366-3975 or WSJ.com/classifieds

       
                      


   $             9 - !        
           
          7       B            6+         ! 5     2$
    !     6    6 

     +    7 5        ! C 6+!  
     
   + 8  1   ! 7 !! !              9  1        !  D(    !  
  
"         .   $ ! !  2      3+    !    !             !    -                       !" #           ! 5 ! % &.#) #' & / #%$)0 12*334*435*665 7!"  #, 89 (: ! 1;32 +!& $ #  %&'         #E :4  0 !    (         ! -   !        *       #      )*  $  #!&'  ! 3         !      !  !  
     (          !      9  0         B  7! 
 


    !      )&    1  % $ 4  !      1  #  +
       !    &()  !! &((D    
        ! -5 )((           4 )F 

            !! !  ! 2/   &&         
   )< ! 5 0   6           
        $  :  9   23+        9 -     !   !"#$ %& &'() $ *+( &! ,(-           ,  8     
        =                      +  !  !  !    !     ! "  #             5           "  $    %! 26         %      &'           !  5    -          
  
  ! &()      &()   23                !! /  #E  0 !   * +       ,      !     !  !   %!         !        6    -    >   ? @A         9 -        -     %     -        ;    !     $ .   $ ! $   !  - 5 $      ? ' )A    !        %!    
         .      !  7   7 - -   #$$ %& & #$$ %&   % -     ,  &(  ,  2   5  9  2
        5  ' '' (  , - (  *  /  -                2! !    0 !    0 !123  )+  !       !!  23  " + % . %/% 0
   4       - 8  9   -  5  0       %!    ! 1 " $2 % 33- %-
      !-             -    5     2 '' %3&
       -    &()&; )(      2C +           5 2)(!   !    /            G5 " #  & . - . ./
 /  -          ! 5         !-  #4 "  . %-. --
   &(('26  
    7     !   !          " $ ' '' -3 .-
.   $ !       *        >               ! $             9 -  $-      #) ("*+         !          26   -    

 
                    

  !   "          # $ % 
       


   
                                    
                  

! ""   # 
     $  %   &                '  (  &                           )  

   %
    )            *                      +  *                    
       !      ! , -  ."/   0  1  0   2    "     #     
+      $  %
& '  (  , 345 '(6         , 7     )        , % )          
 $  &   ,
         8

"# $%  #$ & #
  9  %             )        :      ;                 



 <                                   =>  
 


 ( 
     
             
                          

   
                          
    
                                                                                                    !                "          #             "                  $ $        %&'( $$           )   $       *  * +   '%%&' +  $   ,&& $  
- ./%/' 0 )1     2 %&'( * +     

THE WALL STREET JOURNAL. Monday, August 22, 2016 | B5 SMALL BUSINESS Small Firms Backtrack on Health Plans

As individual policies get pricier and choices shrink, group coverage makes a comeback

BY RUTH SIMON

Some small companies that dropped group health insur- ance for their employees are reversing course, driven by a tightening labor market and rising costs and fewer choices for individual coverage.

Laura Cottrell, owner of a ACKERMAN + GRUBER FOR THE WALL STREET JOURNAL (2) seven-person home-furnish- Chris Carey, president of parts ings and home-improvement retailer Modern Automotive. products business in St. Louis, dropped group coverage in Individual coverage, mean- 2014, not only because of the while, has grown less attrac- cost but also the complexities tive as insurers narrow op- of picking the right plan tions for physicians, hospitals within a short deadline. In- and prescription drugs in an stead, she gave her employees effort to cut costs. Zach a raise that they could use to Obront, founder of Book In A buy their own health plans. Box LLC in Austin, Texas, Now Ms. Cottrell is looking added group coverage in July at adding health benefits to in an effort to reduce stress on make a cabinetry business she his 13 employees. launched this year more at- “There were a lot of bad tractive to potential employ- surprises, like showing up at a ees. If she makes the change, A worker at Modern Automotive Performance welds a part. The company now pays 50% of the health premiums for its 38 employees. hospital and a doctor and be- she says she would offer cov- ing out of network,” said Mr. erage to employees of both of 50 full-time employees—aren’t insurance market. said Michael Matznick, a Companies with three to 50 Obront, whose two-year-old her businesses. required to offer health bene- Michael Stahl, a senior vice Greensboro, N.C., insurance employees paid an average of company helps experts publish “People are looking for fits under the ACA. Many do president at HealthMarkets broker. Costs and terms vary $15,602 annually for each books on their subjects. health care,” said Ms. Cottrell, so anyway, to be competitive Inc., an agency that works from state to state. worker who elects family cov- But finding affordable cov- who said she recently was in the job market or because with small businesses across At the same time, prices for erage, according to Kaiser, up erage remains a challenge. Mi- turned down by one job candi- they think it is the right thing the country, says most small individual coverage are climb- from an average of $12,809 in chael Hobbs, president of a date because she doesn’t offer to do. businesses making changes ing and insurance companies 2010. Chicago real-estate appraisal health benefits. Chris Carey, president of continue to shift to individual are dropping out of the state Government subsidies can company, some days turns Compounding her pain: Modern Automotive Perfor- coverage because their work- and federal marketplaces that make individual coverage at- down as much work as he ac- UnitedHealth Group Inc., her mance in Cottage Grove, ers are eligible for significant sell individual coverage. Last tractive to small firms em- cepts because he hasn’t been personal carrier, won’t offer Minn., eliminated group health government subsidies. week, Aetna Inc. said it would ploying workers earning as able to hire more workers. “In individual coverage in Mis- coverage in 2014 in an effort “But the trajectory of that withdraw from 11 of the 15 much as four times the pov- the competitive environment souri next year. to rein in costs. “This made a is slowing,” he said. For the state exchanges on which it erty rate. For 2016, the ceiling we are in,” he said, “insurance Emily Bremer, Ms. Cottrell’s dramatic impact on our cul- first time, “we are seeing a re- currently offers coverage, generally was $97,200 for a and benefits are becoming a insurance broker, said she is ture, as employees felt they verse migration back from in- making it the latest major in- family of four. Employers, critical factor.” seeing more small businesses were missing out on a benefit dividual to group.” surer to pull back from that however, generally can deduct At the company’s current that stopped offering health that was standard in other or- Conflicting forces are buf- business. the cost of group health-care size and revenue, “it’s not eco- benefits looking to bring them ganizations,” he said. feting small companies. Tran- Estimates of how many premiums. nomical” to offer health bene- back. The online auto-parts re- sitional rules that allowed cer- small businesses offer group Before the ACA, insurers of- fits, said Mr. Hobbs, who cur- “Individual policies seemed tailer and manufacturer back- tain companies to continue coverage vary. Fifty-four per- ten denied coverage to indi- rently has four employees and like a good option” when the tracked last year and now offering existing plans that cent of companies with three viduals with existing condi- six independent contractors. Affordable Care Act took ef- pays 50% of the premiums for don’t meet certain ACA re- to 49 workers offered health tions, one reason costs were “If we are successful in picking fect, she said. “But group its 38 employees. quirements expire at the end benefits last year, about the often higher for small groups. up a significant amount of the plans have more value now.” Questions about the merits of 2017. In North Carolina, same as in 2014 but down But the price gap has “nar- business we are turning down, Unlike large employers, of individual versus group cov- some companies could face from 66% in 2000, according rowed significantly,” said Mat- we could get toward insurance small businesses—those with erage are intensifying as cost increases of as much as to a 2015 Kaiser Family Foun- thew Byrne, an insurance bro- being burdensome but afford- the equivalent of fewer than changes continue to roil the 40% for ACA-compliant plans, dation survey. ker in Dublin, Ohio. able.”

Brexit’s Fallout Reaches Opel in Germany

You do everything it takes to make your business succeed. Our protection can help it thrive.

Being a small business owner requires hard work and commitment. It’s more than your job—it’s your livelihood. At Liberty Mutual Insurance, we understand your dedication to the details. It’s why we take the time to find the right solutions for the risks you face. With local expertise and national resources, we work with you to tailor coverage to your specific needs. You have a passion for your business. We have a passion for protecting it. To learn more, talk to your independent agent or broker today or visit libertymutualgroup.com/details.

BUSINESS OWNER’S POLICY | COMMERCIAL AUTO | GENERAL LIABILITY | PROPERTY | WORKERSCOMPENSATION

@LibertyB2B DANIEL ROLAND/AGENCE FRANCE-PRESSE/GETTY IMAGES

General Motors Co.’s Opel time in nearly two decades. decision to leave the Euro- unit is paring back the hours GM is scaling back work pean Union could result in of German factory workers in a at two Opel assembly plants currency headwinds and move aimed at blunting the in Germany that make mod- weaker British demand for impact of Brexit and breaking els popular in the U.K. Auto light vehicles. even in Europe for the first makers have said the U.K.’s —Natascha Divac

share for Monster the definition Korean takeover deal announced Business of “selling at the bottom.” Rand- by the New York-based invest- stad declined to comment. ment bank in as many months. Watch MediaNews is a newspaper Goldman and EastBridge Part- operator with 240 properties in ners, which is based in Seoul, 12 states. It also operates a re- said Sunday in an emailed state- gional job board. Randstad ranks ment that they would acquire a itself as the second-largest hu- majority stake in Happycall Co. man-resources services provider Happycall’s founder and chair- MEDIANEWS GROUP in the world, behind Switzer- man, Hyun Sam Lee, would be a land’s Adecco Group AG. minority shareholder in the com- Publisher Discloses Monster, based in Weston, pany after the transaction Stake in Monster Mass., pushed into the then-na- closes, according to the state- MediaNews Group Inc. on scent business of digital recruiting ment, which offered no financial Friday revealed a large stake in in 1994, and now offers staffing details of the deal. job board operator Monster services in more than 40 countries. Local media reported an esti- Worldwide Inc. and urged share- —Austen Hufford mated deal value of 180 billion holders to oppose a previously won ($161.5 million) for a 90% announced takeover. ACQUISITION stake of Happycall. Goldman and The move is a hurdle for EastBridge Partners couldn’t im- Randstad Holding NV’s deal to Goldman, EastBridge mediately be reached for further buy Monster for $429 million, In South Korea Deal comment over the weekend. which was announced this Goldman Sachs Group Inc. Happycall couldn’t be immedi- month. Monster shares rose and private-equity firm East- ately reached for comment. 9.9% to $3.78 in 4 p.m. New Bridge Partners have agreed to Happycall recorded revenue of York Stock Exchange composite acquire a South Korean kitchen 132 billion won and operating trading Friday. appliance maker in a deal re- profit of 10.7 billion won last MediaNews said it owns portedtohaveanestimated year, according to the company’s © 2016 Liberty Mutual Insurance. Insurance underwritten by 11.6% of Monster and called value of about $160 million. regulatory filings. Liberty Mutual Insurance Co., Boston, MA, or its affiliates or subsidiaries. Randstad’s offer of $3.40 a This marks the second South —Kwanwoo Jun

B6 | Monday, August 22, 2016 ***** THE WALL STREET JOURNAL.

TECHNOLOGY @wsjd | wsjd.com Tencent’s Deal Faces Skepticism ‘Clickbait’

Supercell’s valuation the value of closely held Su- To Assist percell at $10.2 billion, nearly Reversing Fortunes at $10 billion raises double what it was a year ago. ‘Pokémon Go’ has overtaken questions in wake Tencent and its partners are ‘Clash Royale’ as the Charities BY JACK MARSHALL betting that money on the Hel- top-grossing mobile game on of revenue decline sinki-based company’s ability iPhones in the U.S. to replicate the success of ear- Most people are familiar Tencent Holdings Ltd.’s lier hit games like “Clash of How the games Clash Royale with frustrating “clickbait” deal in June for Supercell Oy Clans.” rank since their Pokémon Go links on the internet, with ti- valued the Finnish mobile- Would any investor have launch tles such as “9 out of 10 Amer- game maker at more than $10 paid so much, knowing the lat- 1st icans Are Completely Wrong billion—a valuation that is est data for “Clash Royale”? 2 About This Mind-Blowing raising questions in light of a “I think the answer is no,” 3 Fact.” But what if the same recent revenue setback. said U.S.-based mobile-game 4 tactic could be used to raise analyst and consultant Tero 5 awareness of charities and to 6 By Juro Osawa Kuittinen. 7 promote donations? in Hong Kong and Supercell said it wants to 8 Clickbait for Good is an ef- Matthias Verbergt make games that are played 9 fort by digital marketing in Stockholm for years and it doesn’t release 10 agency RXM Creative to cre- any game it doesn’t believe MAMJ J A ate a website it says can trans- Supercell’s latest game, can succeed. Note: daily ranking, on the 18th of each month form clickbait from “the “Clash Royale,” has delivered “Clash of Clans,” launched Source: App Annie scourge of the internet” into declining revenue for four in 2012, has become one of the THE WALL STREET JOURNAL. something more positive. consecutive months, according highest-grossing games in his- “What we see is clickbait usu- to SuperData Research. The tory thanks to regular up- Tencent President Martin Lau ally points to trivial news and videogame-research firm esti- dates—reinventions that at- said teaming up with co-inves- meaningless issues. We wanted mates July “Clash Royale” rev- tract both old and new users. tors in the consortium allows to use this [tactic] but shift it enue at $62 million, less than But analysts say the recipe his company to “put in less onto things that really matter,” half of the $133 million the that worked well for “Clash of money but still have a signifi- said Mihai Botarel, creative di- game generated in March, the Clans,” a strategy game, may cant relationship with Super- rector at RXM Creative. month it was launched glob- not necessarily work for cell.” People can visit Clickbaitfor- ally with much fanfare. “Clash Royale,” which centers The slowdown of “Clash Good.org and share clickbait It has been surpassed in on battles. Royale” won’t likely derail the links on their social profiles buzz—and, according to data “Supercell is still learning deal. Bankers have recently ar- that drive traffic to charities. provider App Annie,inU.S. how to extend the shelf life of ranged a $3.5 billion loan for RXM Creative also is publishing iPhone revenue—by the aug- different types of games,” said Tencent to finance the invest- links via a dedicated Clickbait mented-reality appeal of Peter Warman, chief executive ment, a person familiar with for Good Facebook page and “Pokémon Go,” co-developed gaming-research firm Newzoo. the matter said. Twitter account. The agency is by San Francisco-based Nian- Tencent, Asia’s most valu- Analysts say if the declining scouring the Web for content tic Inc. and Tokyo-based Poké- able technology company by revenue trend for “Clash Roy- by or about charities it believes mon Co. market capitalization, is still ale” continues in major mar- to be advocating for worthy Supercell and Tencent de- completing the deal, which is kets like the U.S., it will make causes, and writing clickbait

clined to comment about indi- structured so that Supercell China—the world’s largest SUPERCELL headlines associated with that vidual games’ revenue. won’t be consolidated in its game market by revenue— Supercell’s ‘Clash Royale’ game has met with revenue setbacks. content. Charities can submit Tencent’s largest-ever ac- earnings. Instead, the Chinese even more important, and their content for consideration, quisition is a wager on a com- internet giant will reap any fi- Tencent’s role in expanding lion monthly active users. Supercell’s games, which said Raul Mandru, another cre- pany that produces just a nancial gains as a stakeholder Supercell’s share there even “Supercell in China has last year generated €2.11 bil- ative director RXM Creative. handful of games—four since through the consortium it con- more crucial. been very popular, but it has lion ($2.39 billion) in revenue “It’s an aggregator of wor- its founding in 2010—in an in- trols, while also earning reve- Last month Tencent started not monetized that popular- and €693 million in net profit, thy causes. Some of them are dustry dependent on fickle nue through the distribution distributing “Clash Royale” in ity,” said Tencent Chief Strat- have rivals beyond “Pokémon well known, but some of them players. At $8.6 billion for an of Supercell games in China. China through its WeChat so- egy Officer James Mitchell Go,” such as “Game of War: are less known. We want to 84% stake, the purchase by a During a conference call cial-networking platform, during an earnings conference Fire Age” from Silicon Valley point to as many causes as Tencent-led consortium put with analysts on Wednesday, which has more than 800 mil- call Wednesday. startup Machine Zone Inc. possible,” Mr. Mandru said.

Front-Runners in Tech ‘Selfie’ App Maker’s Public Offering Messaging app Line has stolen the show this year. Top technology offerings globally in 2016, year to date. Pricing date Issuer Country Exchange Total raised Provides Test for Hong Kong Market July 11 Line Japan New York, Tokyo $1.32 billion BY KANE WU Feb. 5 CMC Markets U.K. London 0.32 AND ALEC MACFARLANE May 25 Cotiviti Holdings U.S. New York 0.25 July 14 Larsen & India Bombay, India HONG KONG—One of Toubro Infotech National Stock 0.19 China’s most popular “selfie” Exchange app makers is aiming to raise as much as $1 billion through June 22 Twilio U.S. New York 0.17 a listing on the Hong Kong ex- March 16 Tongyu China Shenzhen 0.14 change, in a test of whether Communication that market can compete with Aug. 8 Shenzhen China Shenzhen, Chinext 0.14 New York and mainland China Bingchuan Network for a wave of expected Chi- THE WALL STREET JOURNAL. nese startup offerings. Source: Dealogic The app maker, Meitu Inc., filed an application with Hong Management (HK) Ltd. and is commerce giant’s board is nom- Kong regulators on Friday for seeking a valuation of roughly inated by a group of managers. an initial public offering that $5 billion from its IPO, the Some bankers also say that could raise $500 million to $1 people said. U.S. investors and analysts billion, and is expected in the Meitu’s investors include have a better understanding of fourth quarter, according to Taiwanese electronics manu- tech business models that are people familiar with the situa- facturer Foxconn Technology focused on building scale with- tion. A successful IPO could Group and U.S.-based hedge out profitability. Chinese tech strengthen Hong Kong’s hand fund Tiger Global Manage- companies often follow ap- as it tries to persuade Chinese ment, as well as China-fo- proaches pioneered by Silicon startups such as $46 billion cused venture-capital funds Valley. Xiaomi has modeled it- phone maker Xiaomi Corp. IDG Capital Partners and self after Apple Inc., while Didi and $36 billion ride-hailing Qiming Venture Partners. is similar to Uber Technolo- app Didi Chuxing Technology Many Chinese tech compa- gies Inc., for example.

Co. to list in the former Brit- LI AN/XINHUA/ZUMA PRESS nies are incorporated over- Hong Kong has also faced ish colony. Newly married couples took selfies in a Zhengzhou, China, subway car earlier this month. seas, part of an attempt to competition for tech listings The New York Stock Ex- sidestep rules that forbid for- from China’s domestic stock change and the Nasdaq Stock setting $25 billion IPO in Sep- which thinks analysts and entrepreneur Cai Wensheng, eign investment in mainland markets, particularly the Shen- Market have been the pre- tember 2014. Other marquee portfolio managers might the Xiamen-based company internet firms, and their list- zhen market where companies ferred destinations for China’s Chinese internet companies, value its shares more highly has a number of apps available ings gravitate to markets such such as video-streaming firm internet giants to launch ini- including JD.com Inc. and on- because of it, according to a in China and overseas that al- as Hong Kong and New York. Baofeng Group Co., which tial public offerings. The rea- line search leader Baidu Inc., person familiar with the situa- low users to edit photos of Hong Kong’s listing rules, trades at 150 times earnings, sons include share-structure also trade in the U.S. tion. The company’s manage- themselves for posting on so- unlike those of U.S. markets, can fetch sky-high valuations. rules that let executives retain Tech firms accounted for ment team, which doesn’t in- cial-media sites. More than a don’t allow companies to have China’s over-the-counter more control of the company just 10% of the Hong Kong clude strong English speakers, billion mobile devices world- multiple classes of shares with stock market in Beijing has at- and the familiarity of U.S. in- stock market’s total capitaliza- also feels more comfortable wide use Meitu’s products, ac- different voting rights, and tracted some startups such as vestors with tech business tion at the end of July, with interacting with Hong Kong cording to its website. frown on structures that let ex- UCAR Inc., a chauffeur car- models. Chinese online shop- the biggest being $244 billion investors, who can use its Chi- Meitu was valued at about ecutives control their compa- hailing app ranked just behind ping giant Alibaba Group online-game maker Tencent nese-language apps them- $3.8 billion following a private nies despite relatively small Didi and UberChina by usage Holding Ltd. flirted with a Holdings Ltd. selves, than with U.S. inves- fundraising round this year holdings. That was one reason that saw its valuation soar to Hong Kong listing before pick- That relative lack of tech tors, the person said. led by Hong Kong asset-man- Alibaba chose to list in New more than $6.8 billion a week ing New York for its record- firms was attractive to Meitu, Founded in 2008 by Chinese agement firm Keywise Capital York. The majority of the e- after the listing.

could care less about the Startup Onion Corp., for Shifting from describing MIMS underlying technology un- example, offers the Omega, objects as smart and con- less it doesn’t work.” a computer the size of two nected to realizing that they Sonos started as some- quarters side by side, with are elements of a service ContinuedfrompageB1 thing like a traditional In- Wi-Fi connectivity for $5. offering allows us to make a help predict when devices ternet of Things company, “What we are selling for $5 prediction: The next break- need to be fixed or up- selling a single model of right now, I think in a few out Internet-of-Things com- graded, he notes. Since ven- connected speaker. But the years will be sold for pen- pany will be another ser- dors generate revenue from company’s commitment to nies,” says co-founder Bo- vices business. subscriptions, they are mo- functionality above all, with ken Lin. That will propel Many people I spoke with tivated to make those re- devices that are connected more connected objects, cited home-care and aging pairs and upgrades. only so as to enable that from walls to clothing. in place as ripe for disrup- Some techies call this functionality, makes it The term Internet of tion. Many of the systems “hardware as a service,” a something of a pioneer in Things is misleading, argues already used for tracking play on “software as a ser- thinking about services Ljuba Miljkovic, co-founder health, homes and pets vice.” It works similarly. In first. of Automatic Labs Inc., could help a growing popu- the case of Brita, the ser- Connectivity, the defining which makes a device that lation of elderly lead more vice is filtered water. For feature of the Internet of can turn almost any car into independent lives. alarm maker ADT, it is secu- Things, turns out to be rela- a connected vehicle. More No one is going to sell rity; for ride-sharing com- tively easy to include in important than simply add- grandma a new smart panies, it is transportation. devices, say the engineers ing a chip and a wireless connected anything, but “You could easily say So- who work on it. “The bar is connection is “why?” How selling her children “peace nos was the first Internet- pretty low to put a chip in does the combination of of mind” for a monthly fee? of-Things company,” says something and make it con- smarts, sensors and connec- That sounds like the next

SERGIO FLORES/BLOOMBERGSonos NEWS Inc. CEO John Mac- nected,” says Icontrol’s Ms. tivity enhance people’s Uber, or at least the next SolarCity’s initial plan was to sell power straight to homeowners. Farlane, “but most people McLaren. lives? Sonos.

THE WALL STREET JOURNAL. **** Monday, August 22, 2016 | B7 MEDIA & MARKETING British ‘Ben-Hur’ Is Epic, Big-Budget Bust Soccer The $100 million Biblical remake failed Attracts to attract faith-based summer moviegoers China

BY ERICH SCHWARTZEL BY MAX COLCHESTER

“Ben-Hur” didn’t have a A consortium led by China prayer at the box office. Everbright Ltd. and private-eq- Hollywood’s latest big-budget uity group PCP Capital Part- attempt to fill multiplexes with ners LLP have lined up a bid faith-based moviegoers and for a major stake in Liverpool general audiences floundered Football Club, according to a this weekend, collecting an esti- person familiar with the matter. mated $11.4 million in fifth place The bid, if successful, would in the U.S. and Canada. mark one of the most high-pro- With a production cost of file Chinese-backed soccer in- about $100 million, “Ben-Hur” vestments to date. However, was the last big-budget re- Liverpool FC’s current owners, lease of the summer movie Fenway Sports Group, which season. The movie was a co- also owns the Boston Red Sox production of Viacom Inc.’s baseball team, might prove re- Paramount Pictures and luctant to sell a large chunk of Metro-Goldwyn-Mayer Pic- its shares in Liverpool. Earlier tures, with MGM picking up this week, the club’s chairman about 80% of the budget. told a newspaper in Liverpool The most famous cinematic that the group would only con- incarnation of “Ben-Hur”—re- sider offers for a small invest- leased in 1959, starred Charlton ment in the storied soccer club. Heston and won a record 11 England’s Premier League

Academy Awards—is consid- PARAMOUNT PICTURES/EVERETT COLLECTION clubs have long been prized by ered one of Hollywood’s great- Jack Huston as Judah Ben-Hur in the 2016 remake of the 1959 blockbuster. This version collected about $11.4 million this weekend. foreign buyers hoping to le- est epics. When box-office verage their brands and cash grosses are adjusted for infla- that same year. on sequels and remakes,” said in on soccer’s mass appeal. tion, the film collected $848.7 “Ben-Hur” had something Mr. Moore. “The challenge on Last year, a consortium of million, making it the 14th high- those movies didn’t: praise all of us is to make sure the Estimated Box-Office Figures, Through Sunday Chinese firms said it was in- est-grossing movie of all time, from religious audiences who movies are fresh and that they SALES, IN MILLIONS vesting $400 million for a mi- according to Box Office Mojo. said it got its religion right are top quality, even if it is a FILM DISTRIBUTOR WEEKEND* CUMULATIVE % CHANGE nority stake in the company The latest retelling of Ju- without sacrificing big-screen sequel or remake.” that owns Manchester City. 1. Suicide Squad Warner Bros. $20.7 $262.3 52% dah Ben-Hur’s redemption at spectacle. But the movie’s pal- Paramount has had a terri- The family holding company of the chariot track tried to at- try showing this weekend could ble summer at the box office 2. Sausage Party Sony $15.3 $65.3 55%- former Italian Prime Minister tract faith-based moviegoers discourage Hollywood from with other movies such as 3. War Dogs Warner Bros. $14.3 $14.3 - Silvio Berlusconi said this despite Hollywood’s spotty re- greenlighting future big-budget “Star Trek Beyond,” “Florence month it has agreed to sell 4. Kubo And The Focus Features $12.6 $12.6 - cord with winning them over. takes on Biblical-era material. Foster Jenkins” and “Teenage Italian soccer club AC Milan to Two Strings The movie was co-produced by Studios have generated greater Mutant Ninja Turtles 2: Out of a group of Chinese investors. Mark Burnett and Roma Dow- profits when they target faith- the Shadows” also falling 5. Ben-Hur Paramount $11.4 $11.4 - The deal valued the club at ney, who have enormous ca- based crowds with modestly short. The studio’s parent *Friday, Saturday and Sunday Source: comScore €740 million ($838 million). chet with religious audiences budgeted dramas such as “Mir- company, Viacom Inc., has The China Everbright con- skeptical of Hollywood treat- acles from Heaven” and been embroiled in boardroom sortium values Liverpool above ments of Biblical stories. “Heaven Is for Real.” drama for months that led to “War Dogs,” starring Jonah $12.6 million. The movie was this at roughly £800 million, Paramount’s “Noah,” star- Paramount Vice Chairman the departure of Chief Execu- Hill and Miles Teller as two released by the Focus Features or about $1 billion, according ring Russell Crowe as the ark- Rob Moore said harsh critical tive Philippe Dauman. friends who stumble into in- division of Comcast Corp.’s to a person familiar with the builder, collected a disappoint- reviews likely weighed on the Two other new releases, ternational arms dealing, col- Universal Pictures. matter. ing $101 million in 2014. Some “Ben-Hur” box office, especially “War Dogs” and “Kubo and the lected a tepid $14.3 million. Of all the new releases, au- A representative for Liver- religious reviewers urged be- in a summer that has seen au- Two Strings,” also couldn’t Time Warner Inc.’s Warner diences liked “Kubo” the best. pool FC didn’t respond to a re- lievers to avoid the film, say- diences underwhelmed by new knock “Suicide Squad” off its Bros. released the movie. It received an “A” grade, ac- quest for comment. Fenway ing it manipulated Biblical text takes on familiar material such third week in first place. “Sui- “Kubo and the Two cording to the CinemaScore co-founder John W. Henry in irresponsible ways. “Exo- as “Independence Day: Resur- cide Squad” collected $20.7 Strings,” an animated feature market research firm. “Ben- didn’t immediately respond to dus: God and Kings” disap- gence” and “Ghostbusters.” million this weekend and now about a boy seeking his des- Hur” received an “A-” and a request for comment. Sky pointed at the box office later “This has been very tough has grossed $262.3 million. tiny in mystical Japan, grossed “War Dogs” got a “B.” News earlier reported the bid.

thecompanystore.com

Black Label The Ultimate Luxury Down Alternative® Introducing PrimaLoft® Black Label™, the ultimate luxury down alternative and the only synthetic bedding fill that truly mimics the premium quality of goose down. Anti-microbial and hypoallergenic qualities protect against dust mites, dander, odors, bacteria and mold. PrimaLoft® Black Label™ comforters, pillows, fiberbeds and mattress pads — only available at thecompanystore.com. 15% off + FREE SHIPPING

Enter code TCS316 in your shopping cart. Shop with us online at thecompanystore.com or call 1-800-799-1399. Expires9/4/16.Excludesclearanceitems.Otherexclusionsmayapply,pleaseseewebsitefordetails. thecompanystore.com

B8 | Monday, August 22, 2016 **** THE WALL STREET JOURNAL. BUSINESS NEWS VW Will Dilemma for Nonprofit Hospitals Resume Some administrators’ said. “eLead met the criteria Conflict Risk for the open-bidding process,” Talks With and board members’ Hospitals, more than any other kind of nonprofit, have business transactions he said. Nathan Dean didn’t re- business ties can pose with officers and board members. spond to interview requests. Dignity Health solicited Suppliers conflicts at facilities ORGANIZATION TOTAL SHARE THAT HAD A TRANSACTION WITH AN INSIDER competitive bids for the mar- keting job, and said eLead’s BY ZEKE TURNER BY ANDREA FULLER Hospitals 2,353 46% bids were “fair and reason- AND MELANIE EVANS Colleges and schools 14,580 14% able” and “market competi- BERLIN—Volkswagen AG tive.” Dignity declined to say if will resume negotia- Nonprofit hospitals have Medical research organizations 313 12% eLead was the lowest bidder. tions Monday to resolve a dis- extensive business ties that Hospital affiliates and clinics 1,558 10% Unlike government entities pute with parts suppliers that can pose conflicts of interests that solicit contracts, nonprof- has led to reduced working for their administrators and Other nonprofits 262,219 6% its aren’t required to disclose hours for thousands of its em- board members, a Wall Street their bidders. ployees across Germany. Journal analysis of newly re- Total nonprofits 281,023 7% Dignity’s board reviewed About 20,000 workers will leased Internal Revenue Ser- Note: For the fiscal year ending in 2014. Data is based only on nonprofits filing Form 990, typically those with receipts of eLead’s bids and performance be affected by shorter working vice data shows. at least $200,000 or assets of at least $500,000. annually, said Peter Hanelt, hours in the coming week While having relationships Source: IRS THE WALL STREET JOURNAL. who chairs the committee across different plants because with companies doing busi- tasked with the reviews. “The of a shortfall in parts used in ness with a nonprofit hospital laws, and Avera hasn’t re- conflict is not inherently models such as its Golf and isn’t necessarily improper—as ceived complaints regarding wrong,” Mr. Hanelt said. “You Sportsvan, Volkswagen long as the deals are disclosed Journey Group’s contracts, she simply want to disclose it and spokesman Christoph Adomat and at market rate—adminis- added. vet it and make sure it’s fair.” said Sunday. trators and board members Mr. Fleck said hospital trust- Hospitals in small towns Mr. Adomat said that both sometimes may be forced to ees disclose conflicts at each may face a particular dilemma sides agreed to break off choose between what’s best board meeting, and he didn’t when it comes to managing talks late Friday and con- for the hospital and what’s discuss or vote on Journey conflicts, said Michael Pere- tinue their discussions on best for their private interests. Group contracts. Mr. Fleck, like grine, a Chicago-based lawyer Monday. “Just because something is most board members at non- and governance consultant. The suppliers, Car Trim legal doesn’t mean that it’s ap- profits, isn’t paid for serving. They may think that because and ES Automobilguss,have propriate,” said James Or- In addition to deals with “governance gurus are telling denied blame for the disrup- likoff, a Chicago-based hospi- board members, nonprofit hos- us we’ve got to get the best tion. They said they sus- tal governance consultant. pitals are required to disclose and brightest people,” their pended delivery because “You run the real risk of vio- transactions with families of of- only choice is to turn to the Volkswagen canceled con- lating the public trust.” ficers and directors. local business leaders known tracts without explanation or Hospitals rank among the At California-based Dignity by the hospitals. compensation. largest nonprofits in the coun- Health, the chief executive’s Rob Montagnese, chief ex- Volkswagen, still sorting try. Because they often are big son has a multimillion-dollar ecutive of Licking Memorial out an emissions scandal employers and have complex marketing contract. Nathan Health Systems in Newark, that erupted nearly a year business arrangements, they Dean, son of Dignity CEO Lloyd Ohio, said his hospital banned

ago, said it would scale back face these dilemmas far more RINGO CHIU/ZUMADean, PRESS landed a contract in 2011 business contracts with board production of its Golf model often than most other kinds of Dignity Health California Hospital Medical Center in Los Angeles. to create an online market for members in the early 2000s. later this year to adjust for nonprofits. Dignity’s branded goods and to The hospital, he said, wanted previous output. In 2014, 46% of more than owned by trustees in areas such hospital trustee David Fleck is produce those items, including to make sure “our community Confirming German media 2,300 nonprofit hospitals had as advertising and construction. board chairman. Mr. Fleck sold lapel pins and badge clips. had confidence that our board reports over the weekend, Mr. at least one trustee or officer Avera McKennan Hospital his stake in Journey Group in The 39-hospital chain paid members were truly here as Adomat said the company would with business ties to the hos- & University Health Center in 2012, but declined to say if the $3.8 million during two years to volunteers.” scratch a total of eight days of pital—either directly or Sioux Falls, S.D., had one of company currently pays him. eLead Resources Inc., and the Mr. Montagnese said it production from the Golf manu- through a relative. That is the largest contracts with a Journey Group and Avera contract was renewed in 2014. hasn’t been a problem to find facturing schedule in October compared with 7% of all non- company that had ties to a di- Health’s general counsel didn’t The younger Mr. Dean owns 51% qualified board members un- and December, the time it takes profits in the Journal’s analy- rector in 2014. The $20.9 mil- respond to questions about of the company, said an attor- der the ban, even in a small to produce about 15,000 Golfs. sis of tax-return data compiled lion construction deal with the Mr. Fleck’s compensation. ney for Dignity. community. The adjustment, he said, by the IRS. subsidiary of Avera Health, An Avera spokeswoman de- The elder Mr. Dean said the At the time, Mr. Montag- was aimed at normalizing out- At more than 270 nonprofit which includes a 545-bed hos- clined to say whether Journey hospital behaved ethically, and nese said, there were three put after Volkswagen had run hospitals, the arrangements pital, five rural hospitals and Group competitively won its he avoided internal conversa- trustees with hospital busi- production during the summer topped $1 million each. Many of dozens of clinics, followed contracts or offered the lowest tions about his son’s contracts. ness—a bank leader, a local at- holidays. the largest transactions involve years of similarly large pay- prices. She said the hospital He didn’t balk at eLead’s bid torney and a real-estate devel- “It’s a completely normal hospitals and medical compa- outs to the same company. typically awards contracts to for the business because his oper—who faced giving up procedure that, in the middle nies that have common board Between 2010 and 2014, the lowest bidder but may son’s company is qualified to either their board seats or of the quarter, you reflect on members. But in other instances, Avera McKennan paid $91.2 consider other factors. Avera’s compete for the work and Dig- their hospital business. your production cycle going hospitals have multimillion-dol- million to Journey Group,the conflict-of-interest policies are nity has policies to prevent All three resigned from the forward,” Mr. Adomat said. lar contracts with companies construction company where in line with state and federal conflicts of interest, Lloyd Dean board. Weather TheWSJDailyCrossword| Edited by Mike Shenk Shown are today’s noon positions of weather systems and precipitation. Temperature bands are highs for the day. 50s 123456 78910111213 Down 29 1945 conference 60s 50s Edmontond 50s <0 1 Fred and Wilma’s site VancouverVVanc CalgaryC y 70s 0s 14 15 16 60s 10s pet 32 Do congressional Seattle Winnipegp 17 18 19 2 Privy to work 60s 70s 20s 20 21 22 23 3 Circus 33 Early eviction site Helena Montreal 30s Portlandd Bismarckk Ottawa weightlifter 34 Bike part Billings 70s AugustaA g t 40s 24 25 26 Eugene Boise 90s 70s 4 Contractor’s 36 Posterior Mpls./St.p/pls / .P. Paul TorontoT t AlbanyA banyy Bostont 50s 27 28 29 submission 80s Siouxoux FFallsll 60s Hartfordrtford 60s 37 In need of a Pierre Milwaukeek Detroitt Buffalo 90s Newew YYorkk 5 1997 Spielberg massage ChicagoChicCh g CleveClCleveland l d 70s 30 31 32 33 34 Reno Salt LLakeC Cityy Deses Moines film Cheyenne Omahah PhiladelphiaPhhilh dlh lp hi 80s 38 Movie director Sacramento 90s Indianapolisdi p Pittsburghg 35 36 37 38 Sanan Franciscoi Denver Springfieldpg 6 Barry Bonds’s Renoir CharlestonCharlesCh l t Washingtonhihingtongton D.C.D C 90s 60s Topeka Kansas LoLouisvilleill 762 homers, e.g. 60s ColoradoColoC d City 39 40 41 40 Migratory duck Las Richmondh d 100+ 90s 70s Springspg Wichitahit St..Lou Louis 7 Precious green VeVegas Raleighliihgh 42 43 44 41 Not isosceles or 60s Nashvillehill stone LosA AngeAngeles Santaanta Fe 80s CChCharlotte l tt equilateral 100s Memphishi 45 46 47 PPhoenixh AlbAlbuquerqueb qq Oklahoma City ColumbiaC b 8 Rink surface 42 German currency San Diego Little Rock AAtlanta Warm Rain Tucson 9 Sideless freight before the euro DllDallas Birminghamh 48 49 50 51 52 ElPaso Ft..Wor Worth JacksonJack 90s 70s Cold T-storms carriers 43 Inventor Whitney Jacksonville 53 54 55 56 30s AustinAtiA Mobileb 10 Charity sporting Houston Stationary 44 Pack, as the trunk 40s 50s Orlandold Snow 57 58 59 events 60s Neww Orleans 45 Brother of 80s SannA AntonioA i Tampa 11 Panache AAnchorageh g 60 61 62 Groucho and 50s Honolulu 90s Miami Showers Flurries 50s 12 Like monsoon Harpo 60s 70s Ice THE NAME IS FAMILIAR... | By Harold Jones season 46 Son of Lord and 13 Holds title to Lady Montague U.S. Forecasts Today Tomorrow Today Tomorrow Across City Hi Lo W Hi Lo W City Hi Lo W Hi Lo W 24 Explosive 45 Ill-tempered 19 Give a hoot 48 Rough guess s...sunny; pc... partly cloudy; c...cloudy; sh...showers; stuff Omaha 85 67 s 85 69 t Frankfurt 71 56 c 81 61 pc 1 Expel from legal 47 Bank offerings 22 Curtain holder 49 Shoulder muscle, t...t’storms; r...rain; sf...snow flurries; sn...snow; i...ice Orlando 93 76 t 92 77 t Geneva 76 54 s 81 58 s practice 26 Move quickly Today Tomorrow 48 Cutoffs, for 25 Bad day for in brief Philadelphia 84 63 s 83 63 s Havana 92 75 pc 91 75 s City Hi Lo W Hi Lo W 7 Moment, 27 “Ain’t No example Julius Caesar 51 Poet Khayyám Phoenix 101 81 pc 100 78 pc Hong Kong 89 81 s 89 80 pc informally Half-Steppin’” Anchorage 60 56 r 62 56 sh Pittsburgh 76 57 pc 82 61 s Istanbul 88 76 s 86 75 s 49 Start a call, 26 Read quickly 52 Harry Truman’s Atlanta 88 69 pc 89 72 pc Portland, Maine 78 54 r 79 61 s Jakarta 90 73 c 90 75 c 11 To’s opposite rapper anachronistically 27 Rum-soaked wife Austin 86 74 t 88 72 pc Portland, Ore. 76 55 pc 82 58 s Jerusalem 86 69 s 87 71 s 30 Packing, so to Baltimore 83 61 s 82 62 s Sacramento 86 57 s 87 56 s Johannesburg 66 39 s 67 38 s 14 Eventually 50 Hit in a high arc cake 54 Parisian denial speak Boise 87 54 s 82 55 s St. Louis 84 66 s 85 72 s London 78 57 pc 84 64 pc 15 Rights-defending 53 Candidate 28 Magnetic metal 56 Tantrum Boston 8262pc7866s Salt Lake City 93 69 s 89 60 t Madrid 96 69 s 98 68 s org. 31 Hangs on the of 2016 Burlington 70 54 pc 80 62 pc San Francisco 68 56 pc 69 56 pc Manila 83 78 t 85 79 c line Previous Puzzle’s Solution Charlotte 88 65 s 89 68 s Santa Fe 76 53 t 80 52 c Melbourne 58 40 sh 55 37 sh 16 Attorney’s field 55 Slander Chicago 78 62 s 82 68 s Seattle 73 54 pc 78 57 s Mexico City 74 54 t 73 55 t 32 Rent out REROUTES MUSKET Cleveland 78 60 s 84 64 s Sioux Falls 88 69 s 86 64 t Milan 81 60 s 84 62 s 17 From 57 Card in a royal ATAPR I CE PRONTO 35 Sizable snakes flush CAMELCONVENT I ON Dallas 86 74 t 91 74 c Wash., D.C. 85 67 s 85 66 s Moscow 81 62 pc 85 63 pc Scandinavia, ESPN DIG TNN Denver 91 58 t 86 56 t Mumbai 86 80 sh 85 79 sh say 36 Soothing 58 Admired UNSEEN MASSE Detroit 78 59 s 83 62 s International Paris 82 59 s 88 65 s ointments PUPPETPROF I T Honolulu 87 76 pc 88 76 c Rio de Janeiro 70 61 r 72 63 pc 18 Portrayer of celeb ASA VOA SLATED Today Tomorrow Houston 88 76 t 91 75 pc Riyadh 110 85 c 108 84 pc Superman on 38 Expert in the CELLAR AMYTAN City Hi Lo W Hi Lo W 59 Super Bowl V DEEDEE AMI ADO Indianapolis 79 60 s 81 66 s Rome 89 67 s 87 67 s TV’s “Lois & Force quarterback GADGETBAL LAD Kansas City 82 65 s 81 70 t Amsterdam 69 61 r 78 63 pc San Juan 89 78 pc 88 76 pc Clark” F E LON YEMEN I Las Vegas 98 78 t 100 80 pc Athens 94 78 s 91 73 t Seoul 93 74 s 92 74 pc 39 Raggedy ___ Johnny ATL CPL TAMS Little Rock 83 71 pc 86 75 t Bangkok 98 82 t 98 80 t Shanghai 96 81 s 94 80 pc 20 Lennon’s love 60 Scary shout CHAR I OTPAMPHLET 40 Formal TENURE OVEREASY Los Angeles 82 63 s 80 63 s Beijing 90 74 pc 84 74 c Singapore 88 80 t 88 79 t agreement SLOGAN TENORSAX Miami 92 76 pc 93 76 pc Berlin 73 58 pc 74 59 pc Sydney 6450sh6453r 21 In need of a 61 Pre-Easter Milwaukee 80 64 s 84 69 s Brussels 74 54 r 82 62 s Taipei 93 78 s 92 80 pc massage 41 “Night Moves” period The contest answer is MUSKET SLOGAN. Each of the theme entries consists of two words that can Minneapolis 82 67 s 85 70 s Buenos Aires 67 43 s 69 47 s Tokyo 84 80 r 85 78 t 23 Prepares for rocker Bob 62 Broadway’s Nashville 84 62 s 88 69 s Calgary 66 48 t 60 47 pc Toronto 7557pc8361s take the suffix -EER (cameleer, conventioneer, New Orleans 91 78 t 92 78 t Dubai 109 94 s 109 93 s Vancouver 68 53 pc 71 56 s a game 42 “Alfie” star Bernadette puppeteer, profiteer, gadgeteer, balladeer,

New York City 81 63 s 80 65 s Dublin 67 57 r 64 51 r Warsaw 66 55 r 76 57 pc s charioteer, pamphleteer). MUSKET and SLOGAN Oklahoma City 87 70 pc 87 72 t Edinburgh 67 49 sh 61 53 r Zurich 73 52 s 78 54 s Solve this puzzle online and discuss it at WSJ.com/Puzzles. are the other two answers that share this feature.

P DCASTS WHAT’S NEXT. NOW.

Brought to you by the staff of WSJD, Tech News Briefing delivers daily news, updates and forward-looking analysis to help you stay a step ahead of the disruptors.

Listen now and discover more at WSJ.com/podcasts ©2016 Dow Jones & Co., Inc. All rights reserved. 6DJ3424

THE WALL STREET JOURNAL. **** Monday, August 22, 2016 | B9

Proud and Relieved, Rio Passes the Torch

BY REED JOHNSON

RIO DE JANEIRO—If the Opening Ceremonies of the Rio Olympic Games offered an idealized glimpse of Brazil from afar, the Closing Cere- monies were more about Brazil look- ing inward at itself. For the most part, Brazil liked what it saw at these Olympics. After two challenging weeks, capping two years of mainly bad news, the coun- try on Sunday was ready, finally, to indulge in a little self-congratula- tion. Even a driving rainstorm that kept some spectators from making the trip to Maracanã Stadium couldn’t extinguish the crowd’s en- thusiasm for this soggy but stirring celebration. Sunday’s ceremonies took a wide detour around the glamorous, jet-set Rio of Copacabana and Ipanema. The focus was on the rich but lesser- known culture of Rio’s less fashion- able precincts; on creative giants like artist Tarsila do Amaral and landscape designer Roberto Burle Marx; and on the music, dance and irrepressible spirit of Brazil’s parched northeast, a vast region steeped in African soul and Portu-

guese-colonial folklore. LEO CORREA/ASSOCIATED PRESS One distinctive genre of that re- For the closing ceremonies at Maracanã Stadium, the hosts focused on the rich but lesser-known culture of Rio’s less fashionable precincts. gion, known as forró, is a jaunty, ac- cordion-driven, workingman’s music. the community’s stout heritage. voted to traditional lace-making most moving moments, occurred social divisions and vast disparities Its greatest practitioner was Luiz In another segment, introducing techniques. when judoka Rafaela Silva, who grew in wealth, education and opportu- Gonzaga, the great Pernambuco the athletes, pop singer Roberta Sá While the outside world has scru- up in Rio’s embattled City of God nity. singer-songwriter with a voice like a channeled Carmen Miranda, the tinized Brazil this month, South community, captured a gold medal. There’s little doubt, too, that roaring furnace. In one of the show’s fruit-headdress-wearing, midcentury America’s largest country has spent It was replayed Sunday in an ath- some glitter has rubbed off the cleverest sequences, his signature Hollywood diva who endures as a be- the last two years in merciless self- letes video montage. Games in recent decades. Cities are number, “Asa Branca,” a plaintive loved camp figure. examination, after the boom years of More important than the medal more likely to think twice about the but resilient tune about rural life, Other performances, by electronic the mid-2000s went bust, financially, counts, the Rio Olympics, on their alleged cost-benefits of the Games. was performed by dancers dressed music artists and DJs, and Grupo politically and morally. Many Brazil- own limited terms, were a success. Next up is Tokyo, the 2020 host, as clay figurines. Corpo, the veteran Minas Gerais con- ians entered these Games simply More things worked than didn’t. whose prime minister, Shinzō Abe, The Closing Ceremonies also took temporary dance company, demon- hoping nothing catastrophic would Most visitors got where they needed made a surprise appearance in a viewers deeper into the Rio’s North strated how Brazil continues to draw happen. to get, if not always on time. blink-and-you’ll-miss-it promo pitch. Zone, a world apart from the South cultural sustenance from its complex But Brazil is ending the Games on Even so, now that the circus has Most modern Olympics have been Zone’s tourist haunts. One particular past. a decidedly upbeat note. The host left town, there will be much for Ca- clouded in ambiguity, so it was fit- neighborhood, Vila Isabel, is associ- There were visual and polyrhyth- country had a respectable medal riocas and Brazilians to reckon with ting that these Games should con- ated with the composer Pixinguinha mic shout-outs to the gods of the in- haul. Some athletes who were ex- in the months and years ahead. Al- clude on a drizzly, overcast winter and other godfathers of Brazilian digenous Guarani people, a recita- pected to win big—or else—did so, though the official cost of these weekend. They left a final image, not popular music. On Sunday, sambista tion by Arnaldo Antunes of his poem principally the men’s soccer team. Olympics has been placed at about of the eternal sunshine of the ro- Martinho da Vila and his daughters “Saudade” (a distinctly Portuguese Others, under far less pressure $12 billion, some experts reckon the mantic, movie-set Rio, but of a more performed “Carinhoso,” co-written word that signifies intense, nostalgic than the Seleção, performed equally true figure could exceed $20 billion. nuanced Rio, and a more subtle Bra- by Pixinguinha in 1917, in homage to longing), and even a sequence de- well, or better. One of the Games’ Rio remains a microcosm of Brazil’s zil, in shades of light and shadow.

tion. “A 100% of the stadium sup- ported us,” Bayaraa said. —Joshua Robinson

NBC’s Olympic Starbucks Supply Dries Up in Rio The Rio Olympics featured dis- appointment for one NBC’s most coveted assets: the network’s se- cret on-site Starbucks for staffers. At each Games since 2000, the network has brought along its own personal Starbucks shop to fuel its thousands of employees working the Games around the clock. The java joints operated covertly, re- How You Argue With Refs stricted from the rest of the media, In Mongolia: You Strip largely because Starbucks isn’t an The Rio games, officially the official Olympic sponsor. Olympics of Undress, began with a A 2014 Wall Street Journal shirtless Tongan flag-bearer two article uncovered the secret Star- weeks ago and ended on Sunday bucks at the Sochi Games, after with a pair of angry, naked Mongo- spotting the company’s green-and- lian wrestling coaches. white cups dotting the landscape

AGENCE FRANCE-PRESSE/GETTY IMAGES Only the latter was an un- of the enclosed Olympic Park, Prior to the Rio Games, no swimmer Michael Phelps’s age (31) had won an individual gold medal. planned performance. In fact, it was more than 350 miles from the a protest strip. nearest franchise. But before the After Mongolia’s Mandakhnaran Rio Games, NBC opted to switch Why TeamUSA Exceeded Expectation Ganzorig lost the bronze medal in its official coffee supplier to the 65-kilogram freestyle wrestling McDonald’s, the singular food to Ikhtiyor Navruzov of Uzbekistan, sponsor of the Olympics. For Team USA it doesn’t get all. We had the French winning 12 a meet with more events than at two of Ganzorig’s coaches blamed Though some NBC staffers much better than this. and 43; they won 10 and 42. the Olympics. There was even a the defeat on a refereeing decision have quietly grumbled about the The Americans may not have That said there were a few big women’s 1,500, a non-Olympic that saw the Mongolian hit with a switch, the McDonald’s coffee cups made a ton of friends in Brazil, miscalculations. We expected Great event that is one of Katie late penalty. They immediately lost have generated some buzz around given their dust- Britain to fall back to earth after Ledecky’s automatic golds. their minds and their shirts. the broader media compound in ups with the law, its triumphant showing at home in Michael Phelps wasn’t in Kazan Byambarenchin Bayaraa ripped Rio, which doesn’t have its own and all that parad- London in 2012, where Team GB because he was serving a suspen- off his top and flung it on the mat Golden Arches. ing around with an won 29 gold medals and 65 overall, sion, but coming into the Games, while railing at the referees’ table. When a broadcast staffer index finger either beating out the Russians in the no swimmer as old as Phelps, who Another coach exploding next to entered a press conference last raised in victory gold medal count. (That is the is 31, had won an individual gold him went even further. After the week holding a McCafe cup, MATTHEW or pointed at other count the rest of the world cares medal. His recent times were sig- shirt came off, so did the track she was approached by several cu- FUTTERMAN teams’ athletes for most about.) Instead, the Brits got nificantly slower than the competi- pants, which he spiked harder than rious competitors about where it being dopers, to 67 overall medals and finished tion this year. Other U.S. Olympic a football. was obtained. while Team USA second in the gold medal race— rookies had never beaten the best “The referees were not good. A spokesman for NBC confirmed itself had 11 members who had ahead of China—with 27. in the world on a big stage before. They only supported the Uzbek,” the coffee supplier switch, saying in previously tested positive for Clearly, the massive British in- Betting on Anthony Ervin, who is Bayaraa said. “Three million people a statement that “McDonald’s is a banned substances. vestment in sports in the run-up to 35-years-old and last won the 50- in Mongolian waited for this bronze great Olympic partner of ours, so it The medal races became an ab- the London Games is continuing to meter freestyle in 2000 in Sydney, medal and now we have no medal.” was only natural for us to invite solute blowout though—even more pay dividends, especially in cycling, would have been silly. A stunned crowd inside the Cari- them to be our Rio [International than The Wall Street Journal pre- where the Brits are nearly unbeat- We know how that all went—16 oca 2 Arena wasn’t sure what to Broadcast Center] coffee supplier.” dicted. The U.S. won more medals able. China, meanwhile, which won gold medals and 33 overall for make of it. But to the two Mongo- —Sara Germano and (121) than it has at any Summer the gold medal race at home in Bei- U.S. swimmers. lians, there was only one interpreta- Anton Troianovski Games except 1984, when many of jing in 2008, has taken a steep dive. In track and field, Americans the Soviet countries boycotted. The Journal had the Chinese, who won six gold medals and 18 overall The Journal got a few things are masters of precision sports, win- at the 2015 world championships. right, or nearly right, in its ning 35 gold medals and 82 overall. Thanks to an incredibly deep team predictions. They finished with 26 and 70. and surprise wins from the likes of We said the U.S. would win We were long on the Austra- Matt Centrowitz in the 1,500 both the overall and gold medal lians, forecasting 17 gold medals meters, they nearly doubled both races and that it wouldn’t be very and 48 overall. They stunk, win- those totals, leaving the track with close, largely because U.S. women ning just eight gold medals and 29 13 gold medals and 31 overall, would be so exceptional. They overall, which is four fewer than which was even better than their were. American women out- the U.S. won just in the pool. dominant performance in London. medaled the men 61-55 and out- That swimming and ultimately What gives? Making the U.S. golded them 27-18. Another five track drove the U.S. medal count team is ridiculously competitive. medals, including one gold, came wasn’t a surprise. That’s the Amer- Swimmers have to finish in the top in mixed competitions. ican formula. But the extent of the two in their races at the Olympic We had the U.S. winning 42 American success in those events trials, while runners have to finish gold medals. They won 46. We got was stunning. in the top three. That makes ath- the order of the top five countries We predicted 102 overall medals letes train especially hard in Olym- in the overall medal count correct. for the U.S. That made sense con- pic years, and they arrive at the Predicting Russia was a massive sidering the relatively poor perfor- Games prepared to outdo whatever puzzle, since the makeup of their mances at last year’s world cham- they have done in the team kept changing. In the end we pionships in swimming and track recent past. settled on 16 gold medals and 51 and field. In the swimming champi- If Phelps comes out of retire- overall. The Russians will leave Rio onships in Kazan, Russia, in 2015, ment at 35 in 2020, we won’t bet

with 19 gold medals and 56 over- the U.S. won just 23 medals in against him again. AGENCE FRANCE-PRESSE/GETTY IMAGES

B10 | Monday, August 22, 2016 ** THE WALL STREET JOURNAL.

USA to World: Dream On

With an emphatic win, the ter LeBron James and Stephen Curry nal and simply overpowered Serbia passed on playing in the Olympics. in the final. “Unfortunately,” said U.S. basketball team Their absences left the Americans Serbian coach Aleksandar Djordjevic, removed any lingering more vulnerable than they would “some of our guns were not as have liked. No longer was there chat- loaded as the first game.” doubts about its quality ter about whether this Team USA It was also the end of a remark- was the best one ever. The better able era for Team USA that came BY BEN COHEN question was whether it was the right after a forgettable one. best team in these Olympics. Duke coach Mike Krzyzewski was Rio de Janeiro They still won the gold medal, hired in the wake of the Americans Team USA didn’t want any sur- though, because they had Kevin Du- finishing sixth at the 2002 world prises in Olympic men’s basketball, rant. His summer, which started by championships and being embar- because the only surprise in Olympic signing with the Golden State War- rassed with bronze at the 2004 men’s basketball would have been riors, ended with Durant showing Games. Team USA then lost to Greece Team USA not winning gold. why that should terrify the rest of in the 2006 world championships, USA Basketball officials made the NBA. He was unstoppable as he Krzyzewski’s first international tour- sure they knew how the Summer scored 30 points, shooting 58.1% on nament. His family has called that the Games would end before they even 3-pointers for the tournament, and worst night of his life, and for years, began. They visited this city 10 times he sapped the energy out of Rio’s Team USA managing director Jerry in the last year. They were aware oddly empty arena by staking the Colangelo refused to re-watch the months in advance what time the Americans to a 23-point halftime game. He was distraught all over sun would set during their stay here. lead that only ballooned as the game again when he finally did. They studied blueprints of every became more boring. They did everything they could room in their hotel, which happened from then on to make sure they to be a boat. weren’t humiliated again. The most They wanted to avoid excitement, “If you let them play important part of their plan was giv- but there was only so much they like they want, they will ing the U.S.’s highest-paid professional could plan in advance. They also basketball players a reason to play for knew that weird things happen at kill you,” said Serbian free in the summer: a culture built the Olympics. A taekwondoka from guard Stefan Markovic. around representing their country. Tonga takes off his shirt. A wrestling No one felt that swell of patrio- coach from Mongolia takes off his tism more than Carmelo Anthony, pants. A pit stop at a gas station re- “If you let them play like they four-time Olympian who was on the sults in an international incident. want,” said Serbian guard Stefan 2004 and 2006 teams, and then the As it turned out, though, there Markovic, “they will kill you.” 2008, 2012 and 2016 gold-medal was one thing that would have been It was an emphatic win for a team teams. “I’ve seen the worst and I’ve too weird for even the Rio Games: a that hadn’t always played inspiring seen the best,” a teary Anthony said basketball team of NBA All-Stars los- basketball here. That wound up be- afterward. ing to a basketball team of almost no ing the most unexpected setback for Team USA hasn’t lost again since NBA players. Team USA: They didn’t win some that stunning upset in 2006. The The final medal event of these early games by enough. The Ameri- Americans were on a 75-game, de- Olympics went the way nearly every- cans escaped three tight group-play cade-spanning winning streak before one expected as Team USA reminded games, including a three-point win Krzyzewski’s swan song as the na- the world there is one global basket- over Serbia, and were enveloped by tional coach Sunday—and they cele- ball superpower in a 96-66 rout of Ser- questions about why they weren’t brated their 76th consecutive win by bia for the Americans’ third straight more dominant. draping themselves with American gold medal. Spain beat Australia, There were no such questions in flags that appeared gigantic even 89-88, earlier Sunday for bronze. the knockout round—especially with wrapped around 7-footers. The tenants of Team USA’s boat the gold medal at stake. The U.S. It was exactly what they wanted:

MATT YORK/ASSOCIATED PRESS on Guanabara Bay didn’t include dominated Argentina in the quarter- the least surprising image of the en- Carmelo Anthony performs a dunk during the Rio 2016 men’s basketball final. some of the NBA’s biggest stars, af- final, controlled Spain in the semifi- tire Olympics. ABoxerWhoWon’tBePutinaBox

Winning a gold medal at the tion to the Vietnam War, his pride an Olympic champion and the unof- Olympics is typically perceived as a as an African American and his ficial captain of the U.S. boxing pinnacle. But on Sunday, Claressa quest for religious tolerance. “Box- team, whose corps of young men Shields won her second Olympic ing was just his platform, and it turn to her for counsel. gold medal in four years, and she is could be mine,” she says. “I don’t Outside the ring, some momen- only 21—too young not to burn know God’s plan for me. But I know tum is building. A documentary with a zeal for greater achieve- it’s bigger than boxing.” Noting called “T-Rex” (her nickname), ments, and either too young or too that she overcame extreme poverty chronicling her experiences before confident to keep quiet about and neglect in Flint, Mich., she and after the London Games, dreams that are certain to strike says, “I think he wants me to help gained critical acclaim upon its re- many people as naïve. those who feel broken to feel un- lease this summer. Universal Stu- For instance, there’s the desire broken.” dios is negotiating to purchase her she expresses to become a boxer as As a sport, boxing doesn’t pro- life story. Her list of sponsors now feared, famous and vide as prominent a platform for includes Zappos.com, Dick’s Sport- accomplished as Mu- men as it did back when Ali won ing Goods, Mini Cooper and Pow- hammad Ali. In Rio, an Olympic gold medal in 1960. erade, among others. She is “under in three middle- Among potential sponsors, “a lot of very serious consideration” for a weight bouts—the brands will stay away from any- role in a Hollywood murder-mys- heaviest category al- thing associated with violence. tery film, says Fritz, her agent. BY KEVIN lowedinfemalebox- Even more brands will stay away With an amateur record of HELLIKER ing at the Olympics— from female violence,” says Jamie 77-1—her only loss came before the Shields dispatched Fritz, Shields’ agent. London Games—Shields could con- her opponents with Yet if the Olympic ideal is to tinue living at the U.S. Olympic such speed and power that it’s easy achieve a gold medal despite in- training center in Colorado Springs to imagine her someday being credible obstacles, no U.S. athlete as she trains for a third gold medal known as the Greatest Female of better embodies that than Shields. in Tokyo in 2020, when she would All Time. While most U.S. Olympians receive be only 25. Or she could test

But gender is a significant as- deep support from their parents, whether her Olympic-gold creden- ROB CARR/GETTY IMAGES terisk in a sport where a tepid she grew up not knowing where tials could help elevate the status Claressa Shields won her second consecutive Olympic boxing gold on Sunday. market exists for female profes- she would sleep many nights, or and paychecks of women in profes- sionals. Could a female title holder where her next meal would come sional boxing. After all, former she likes to beat up people. That a different pose outside the ring. In somehow break out into stardom, from. Now, on her income from Olympic medalist Ronda Rousey scene has drawn criticism from fe- the past four years, she has struck fighting for nine figures on a card modest sponsorships and about has proved that a large audience male-boxing advocates who argue up a bond with a professional featuring men earning six figures? $3,000 a month from USA Boxing, exists for female mixed-martial- that women should be allowed to woman in Flint, Corey Taylor. De- Outside the ring, too, Shields she provides financial support to arts fighters. engage in the same thug-like pos- scribing the relationship in terms has vowed to succeed Ali. Attend- her family back in Flint. Emerging In the documentary “T-Rex,” turing that’s so common among that might sound surprising com- ing his memorial service in Louis- from a family afflicted with pov- USA Boxing spokeswoman Julie male fighters. ing from a boxing champion, ville in early June, Shields came to erty, addiction and run-ins with the Goldsticker is seen advising Shields But Shields witnessed enough Shields says, “Miss Corey is teach- see the importance of his opposi- law, she became an honors student, to stop telling interviewers that thuggery in Flint to want to strike ingmetobealady.”

What If They Awarded Medals for Finishing in Last Place?

By most measures, the Rio Games were a disappointment for Not-So-Precious Medals Brazil’s Olympic team. Here’s a tally of countries that have had the most last-place finishes Brazilian athletes won just seven (lead), second-to-last (tin) and third-to-last (zinc). gold medals and 19 overall, or 1.9% of COUNTRY LEAD TIN ZINC TOT all medals handed out at the Games, Brazil 21 13 11 45 the fourth-worst ratio of any host na- 7111129 tion in Olympic history, according to Australia Stats LLC. Egypt 96823 Japan 69823 United States 88723 Germany 5 4 13 22 Turkey 3 6 10 19 Argentina 2 2 14 18 China 56718 But there’s one category in which Ukraine 75618 Brazil’s Olympians were a runaway Kazakhstan 3104 17 success: coming in last. Cuba 267 15 The Wall Street Journal pored France 17715 through the results of every Olympic Source: WSJ Research event to hand out lead, tin, and zinc medals to the athletes who came in last place, second-to-last and third-to- overall and 21 lead medals for last- nations are eligible to compete in third in the Journal’s table, with 23 for his performance in the 80-kilo- last, respectively. An athlete needed place finishes—more than twice as Olympic events they wouldn’t have lead, tin and zinc medals. gram taekwondo event. to finish his or her event to qualify many as anyone else. qualified for otherwise. Even one of the biggest stars of And it turns out Simone Biles for consideration, and ties were bro- This marks the second consecu- Other countries don’t have that as the Olympics couldn’t avoid the pit- wasn’t the only gymnast hoarding ken by margin of victory. tive Summer Olympics in which the an excuse, though, meaning Egypt falls of earning a lead medal. Pita Ta- medals, either: Kevin Crovetto of In the final tally, the Journal’s dis- host nation has won the lead, tin, may be the biggest winner of the los- ufatofua, the Tonga flag bearer who Monaco earned four lead medals tinct—and somewhat less desirable— and zinc medal count. Four years ers. The Egyptian Olympic team has earned international attention during and one zinc medal for his perfor- medal count was comfortably topped ago, Great Britain took home that collected just three bronze medals in the opening ceremonies for parading mances in Rio. by Brazil, which earned 45 medals dubious honor, likely because host the official medal count, but tied for around shirtless, earned a lead medal —Max Cohen

AGENCE FRANCE-PRESSE/GETTY IMAGES

MOVING THE MARKET C2 | MARKETS DIGEST C4 | MONEY RATES C5

Two Strategies, Lending Ties Checked One Busy Play HEARD ON FDIC studies ‘rent-a-charter’ deals GLOBAL FINANCE | C3 THE STREET | C6 TIM BOYLE/GETTY IMAGES © 2016 Dow Jones & Company. All Rights Reserved. THE WALL STREET JOURNAL. Monday, August 22, 2016 | C1

Last Week: DJIA 18552.57 g 23.90 0.13% S&P 2183.87 g 0.01% NASDAQ 5238.38 À 0.10% 10–YR. TREAS. g 19/32, yield 1.580% OIL $48.52 À $4.03 EURO $1.1326 YEN 100.21

Mixed Returns A put-writing index tied to the S&P 500 has lagged behind in 2016. Pensions Try a Fear Trade Total return CBOE S&P 500 PutWrite Index S&P 500 40% As they chase yield, an arcane options strategy value. the payouts, so they aren’t called cash-secured put writ- The upside for the pension caught without money if the 20 some funds are plying ing. In a typical trade, the in- funds, which are writing op- market goes against them. a strategy that acts as vestor sells a contract, known tions on the S&P 500 index, is The cost of options tends to as a put, to someone who that they earn regular income. rise when investors expect big 0 a volatility dampener owns stocks The strategy aims to work like market swings, so the strategy ABREAST OF and is will- a volatility dampener. If stocks does best when investors are BY BEN EISEN THE MARKET –20 ing to pay fall, the income the funds have fearful and paying up for pro- AND AARON KURILOFF up for pro- collected on the options con- tection against a downturn— Through tection in tracts should help cushion any and a downturn doesn’t mate- Aug. 19 –40 Some pension funds are case they decline. If, within a hit they take on the puts and rialize. ’07 ’08 ’09 ’10 ’11 ’12 ’13 ’14 ’15 ’16 seeking to profit from others’ certain time, the shares fall their own separate stockhold- But if protection is cheap fear. below a given price, the inves- ings. The pension funds set and the market takes a big Note: Returns for 2007 are from June 20, when the CBOE S&P 500 PutWrite Index was launched. Pension funds in Hawaii tor buys the stocks at that aside some cashlike instru- fall, the pension fund can end Sources: FactSet (S&P 500); Thomson Reuters (PutWrite) THE WALL STREET JOURNAL. and South Carolina are plying price, or covers their lost ments such as Treasurys for Please see FEAR page C2 Kobe Bryant, Partner Ross’s New Big Bet: Energy Unveil a Venture Fund BY MATT JARZEMSKY BY DENNIS K. BERMAN 6-foot-6-inch Mr. Bryant, an Wilbur Ross, known for big Achilles rupture during a 2013 investments in downtrodden in- Meet Kobe Bryant, venture game against the Golden State dustries, is betting that the oil- capitalist. Warriors; and in the case of 5- and gas-slump has dragged on The retired NBA star Mon- foot-7-inch Mr. Stibel, a broken long enough to shake out day will unveil his venture-cap- foot in a mishap with a Man- weaker players. ital fund, a $100 million vehicle hattan cobblestone. His investment firm, WL for investing in technology, me- “We don’t want to be in the Ross & Co., has purchased hun- dia and data companies. business of investing in compa- dreds of millions of dollars in Mr. Bryant, who turns 38 nies so someone can use Kobe troubled energy debt in a bid to years old Tuesday, isn’t going it as an endorser. That’s not in- take control of distressed oil- alone: He is partnering with teresting,” said Mr. Stibel, who and-gas companies if they are Jeff Stibel, 43, a longtime en- began his career in brain re- forced to hand over ownership trepreneur and investor who search and later founded and to creditors, according to people was introduced to Mr. Bryant developed tech companies. familiar with the matter. The by a mutual friend. They have “The point is to add real firm sat out the early innings of named their firm Bryant Stibel value.” the downturn, when other in- and will be based in the Los Mr. Bryant, who is known vestors pounced on perceived for his painstaking preparation bargains that continued losing and training, said he also value when oil and gas prices $100 brings the ability to identify fell further. entrepreneurs with a robust WL Ross is angling to swap Amount, in millions, that will work ethic. debt for ownership in Breitburn go into the fund launched by “Sometimes you can spot it Energy Partners LP, which filed Kobe Bryant and Jeff Stibel right away, other times not so for chapter 11 protection in May, much,” said Mr. Bryant. “It’s and has been buying debt of the inner belief that a person Permian Resources LLC, a Angeles area. has that he will endure no mat- Texas oil producer founded by The two men are contribut- ter what the obstacle may be. the late wildcatter Aubrey Mc- ing the $100 million—which It’s that persistence, the entre- Clendon that might ultimately they expect to invest over the preneur doing what he or she have to hand at least part-own- next few years—and aren’t truly believes in and truly loves ership to creditors in a restruc- seeking outside investors yet. to do.” turing, said people familiar with Current investments include the matter. sports media website the Play- The slide in oil prices that ers Tribune, videogame de- began two years ago and a re- signer Scopely, legal-services sulting spate of bankruptcies company LegalZoom, a tele- have dragged down the prices of marketing-software firm called energy-company debt, some- RingDNA and a home-juicing times to just pennies on the dol- company called Juicero. lar. Distressed-debt investors In an interview, the two men such as Mr. Ross buy the deeply said their skills complement discounted debt but retain bar- each other, with Mr. Stibel gaining rights on the full face bringing experience building value in a bankruptcy or debt companies and Mr. Bryant con- restructuring. tributing a creative, if obses- The strategy can deliver big sive, flair for details around gains if the companies rebound marketing, branding and story- after slashing their debt. Mr. telling. He, in fact, designed the Ross used it as he built up steel company’s new logo with inspi- and coal conglomerates that he Investor ration from piano keys.

Please see ROSS page C2 Wilbur Ross They even bonded over ANDREW D. BERNSTEIN/BERNSTEIN ASSOCIATES, INC.

CHRIS RATCLIFFE/BLOOMBERG shared injuries. In the case of Retired NBA star Kobe Bryant

How Apple’sTim Cook Is Faring Markets are complex. Trading in them shouldn’t be. BY STEVEN RUSSOLILLO haunt Apple. With iPhone Middle of the Pack sales slowing, Apple has re- One of the most important Share price and index performance ported two consecutive quar- succession plans in corporate since Tim Cook became Apple CEO terly drops in revenue, snap- history will hit a milestone ping a streak of 13 years of 150% Nasdaq this week. Composite growth. Five years ago, Apple Apple On Wall Street, Apple has 100 Inc.’s iconic and S&P 500 made the improbable transi- AHEAD OF visionary co- tion from a growth to a value THE TAPE founder Steve 50 stock thanks to the billions The most liquid and actively traded security in the world. Jobs passed the of dollars in dividends and torch to his 0 share buybacks. handpicked successor, Tim Apple’s stock has more Cook. The official transition –50 than doubled over the past took place six weeks before five years, outperforming the Mr. Jobs died. 2011 ’12 ’13 ’14 ’15 ’16 S&P 500 but slightly trailing Visit spdrs.com/spy Now Apple is the world’s Source: WSJ Market Data Group the tech-heavy Nasdaq largest company by market THE WALL STREET JOURNAL. Composite. Its valuation is value and remains one of the cheap, but it has been cheap AssetsforSPYasof03/31/2016were$184B.ThesecondlargestETFhadassetsof$71Basof03/31/2016.Averagedailytrading volume over the past three months was over 146,835,868 shares as of 03/31/2016. Source: Bloomberg as of 03/31/2016. most influential. Its $53 bil- scoring all of this is one key for years. The worry that lion in net income last year question that Mr. Cook will Apple doesn’t have another ETFstradelikestocks,fluctuateinmarketvalueandmaytradeatpricesaboveorbelowtheETFsnetassetvalue.Brokerage was greater than the com- likely never escape: Are Ap- revolutionary product up its commissions and ETF expenses will reduce returns. bined earnings of technology ple’s best days behind it? sleeve is what weighs on the TherecanbenoassurancethataliquidmarketwillbemaintainedforETFShares. behemoths Facebook Inc., Apple’s product lineup has stock. The SPDR® S&P 500® ETF Trust is an exchange traded fund designed to generally correspond to the price and yield Google’s parent Alphabet expanded under Mr. Cook, In his first email to em- performanceoftheS&P500Index.TM Inc., Amazon.com Inc. and but each category faces its ployees as CEO in August SPDR®,S&PandS&P500areregisteredtrademarksofStandard&Poor’sFinancialServicesLLC(S&P)andhavebeen Microsoft Corp. Apple re- own set of concerns. The 2011, Mr. Cook said: “I want licensed for use by State Street Corporation. State Street Corporation’s financial products are not sponsored, endorsed, sold cently sold its billionth iPhone, launched under Mr. you to be confident that Ap- or promoted by S&P, S&P Dow Jones Indices LLC, Dow Jones Trademark Holdings LLC, their respective affiliates and third iPhone. Jobs, is even bigger in dollar ple is not going to change.” party licensors and none of such parties make any representation regarding the advisability of investing in such product(s) At the same time, though, terms now and contributes But change is inevitable, nor do they have any liability in relation thereto, including for any errors, omissions, or interruptions of any index. Apple’s growth is slowing, its roughly two-thirds of the even if Apple’s shareholders ALPSDistributors,Inc.isdistributorforSPDRS&P500ETFTrust,aunitinvestmenttrust.ALPSDistributors,Inc.isnot stock is stagnating and it is company’s overall revenue. are slow to accept it. affiliated with State Street Global Markets, LLC. facing more concerns than And yet its outrageous Before investing, consider the funds’ investment objectives, risks, charges and expenses. To obtain a prospectus ever about its future. Under- success is coming back to Email: [email protected] or summary prospectus, which contains this and other information, call 1.866.787.2257 or visit www.spdrs.com. Read it carefully.

INDEX Currencies...... C2 Global Finance...... C3 Moving the Market...... C2 New to the Market...... C4 IBG-19394 NotFDICInsured•NoBankGuarantee•MayLoseValue Closed-End Funds...... C4,5 Financial Flashback...... C4 Heard on the Street...... C6 Markets Digest...... C4 Ticker...... C2

C2 | Monday, August 22, 2016 THE WALL STREET JOURNAL. MOVING THE MARKET

THE TICKER | Market events coming this week

Monday EIA status report Durable-goods orders Earnings expected* Previous change in stocks in June, previous down 3.9% millions of barrels Estimate/Year Ago($) July, expected up 3.2% Nordson 1.33/1.16 Crude oil down 2.5 Gasoline down 2.7 Earnings expected* Tuesday Distillates up 1.9 Estimate/Year Ago($) Autodesk (0.13)/0.19 New-home sales Existing-home sales Dollar General 1.09/0.95 June, previous 592,000 June, previous 5.57 mil. Dollar Tree 0.73/0.25 July, expected 580,000 July, expected 5.55 mil. Medtronic 1.01/1.02 Tiffany & Co. 0.72/0.86 Earnings expected* Earnings expected* Ulta Salon 1.39/1.15 Estimate/Year Ago($) Estimate/Year Ago($) Best Buy 0.43/0.49 HP Inc. 0.44/0.40 Friday Intuit (0.02)/(0.05) PVH 1.28/1.37 Gross domestic product: J. M. Smucker 1.74/1.32 Workday (0.02)/0.02 Percentage change, annual rate Wednesday Thursday 2nd qtr. adv. est. up 1.2% 2nd qtr. sec. est. up 1.1% Short-selling reports Initial jobless claims Ratio, days of trading volume of Previous 262,000 GDP Deflator current position, at July 29 Expected 265,000 2nd qtr. adv. est. up 2.2% NYSE 4.8 2nd qtr. sec. est. up 2.2% Nasdaq 4.5 EIA report: natural gas Previous change in stocks in U.Mich. consumer index Mort. bankers indexes billions of cubic feet Aug., prelim. 90.4 Purchase, prev. down 4% up 22 Aug., final 91.0 Refinan., prev. down 4%

* FACTSET ESTIMATES EARNINGS-PER-SHARE ESTIMATES DON’T INCLUDE EXTRAORDINARY ITEMS (LOSSES IN

PARENTHESES) ADJUSTED FOR STOCK SPLITNOTE: FORECASTS ARE FROM DOW JONES WEEKLY SURVEY OF BEN MCCANNA/PORTLAND PRESS HERALD/GETTY IMAGES ECONOMISTS Shopping at a Best Buy store in Maine. The electronics retailer is scheduled to report its quarterly earnings on Tuesday.

would have been priced last understand them.” “l think it’s difficult to as- FEAR week, Hawaii could generate South Carolina’s goals were sess the true risk of these Focus Financial Filed about $19 million a month in similar. The approach is a strategies,” Mr. Loftis said. He income if it wrote puts on the complement to the traditional added, “one of the great un- Continuedfromthepriorpage full amount and the options equities risk in other parts of told stories of the pension Confidentially for IPO up with losses. weren’t exercised, according the commission’s $28 billion world is how we have underes- “There comes a point where to Neil Rue, a managing direc- portfolio, said Geoff Berg, act- timated risk.” Focus Financial Partners, firms that invest in financial- you might be picking up pen- tor at Pension Consulting Alli- ing chief investment officer Some are also betting there an investment firm that backs advisory teams spinning out of nies in front of a steamroller,” ance, an independent firm that for the South Carolina Re- is a market for this strategy wealth-management advisers big retail brokerages like Mor- said Nathan Faber, vice presi- works with the pension fund. tirement System Investment among retail investors. Wis- who are leaving big Wall gan Stanley, Merrill Lynch and dent of investment strategies Hawaii wanted to diversify Commission. It has committed domTree Investments intro- Street banks to strike out on UBS Group AG. Competitors at Newfound Research, an in- market exposure after the fi- about half of a $1.4 billion eq- duced its CBOE S&P 500 Put- their own, has confidentially include HighTower Advisors vestment manager that uses nancial crisis hit many assets uity options allocation to the Write Strategy exchange- filed for an initial public offer- LLC, which counts Philip Pur- put writing, but not tied di- at once, according to Vijoy strategy. traded fund in February, which ing that could value it at $1 cell, former chief executive of rectly to the S&P 500. Chattergy, chief investment South Carolina Treasurer has $12.2 million in assets. billion, according to people fa- Morgan Stanley, and David For some, the approach of- officer at the pension fund. Curtis Loftis, who is a member And Neuberger Berman filed miliar with the matter. Pottruck, former CEO of fers a way to generate income, “After the great financial of the pension fund’s invest- a registration statement in Focus is working with Bank Charles Schwab, among its in- which can be especially attrac- crisis, we recognized that ment commission, has been June for a mutual fund that vestors. tive with government-bond there was a lot of risk in our critical of the fund’s decisions will employ a put-writing By Liz Hoffman, Financial advisers at big yields at record lows. portfolio,” he said. “We’ve in the past. He voted to ap- strategy, though it isn’t yet ef- Maureen Farrell banks are relatively mobile. Matt Moran, vice president been in an ongoing effort to prove the put-writing strategy, fective and the fund hasn’t and Telis Demos Subject to rules agreed upon of business development at address those concerns and but remains cautious about it. commenced operations. by most of the big brokerages, the Chicago Board Options Ex- of America Corp. and Gold- they can quit their firms and change, described the put- man Sachs Group Inc.onthe set up shop immediately with writing approach in terms of Cash-Secured Scenario 2 offering and may seek to list continued access to their cli- baseball: Over long periods of Index rises, option by the end of the year, the ents. That is in contrast to in- expires worthless time, the strategy hits a lot of Put Writing people said. vestment bankers and traders, Pension funds are selling stock options like insurance, offering and holder collects singles and doubles, but can nothing Companies can file confiden- who are often sidelined for also hit fewer home runs and investors protection against a market downturn and collecting tially for IPOs on U.S. ex- months. hits into fewer double plays income on the contracts. Here’s how a typical trade might work: changes if they generate less There were 47,000 indepen- than the S&P 500. contract than $1 billion in annual reve- The CBOE S&P 500 Put- expires nue. Focus, which was founded Write Index, a benchmark for in 2006, said in a press release $1 billion the strategy, has returned this month that it has almost 4.4% this year through Friday, $400 million in annual revenue. Focus Financial Partners’ IPO A pension fund sells an options Scenario 1 “strike” price versus an 8.4% total return for contract that grants the holder Index falls below the Focus’s backers include could value the company at the S&P 500, which includes the right to sell the underlying "strike" price, pension fund venture-capital firms Polaris this sum. dividends. The PutWrite index security, like shares of a stock buys the shares or covers Venture Partners and Sum- didn’t fall as sharply as the index, to the pension fund if the lost value, with money mit Partners as well as pri- market during the selloff of the security falls below an it has set aside. vate-equity firm Centerbridge dent advisers in 2014, up from early 2016 but has lagged be- agreed-upon price within a Partners, which made a $216 36,000 in 2007, according to hind the rallies. In 2008, dur- certain amount of time. THE WALL STREET JOURNAL. million investment in 2013. industry-research firm Cerulli ing the financial crisis, the Its filing comes amid a Associates, which projects put-write strategy returned drought for IPOs. U.S. first- there could be 51,000 by 2017. minus-27% compared with the time offerings total $12.8 bil- Meanwhile, the number of S&P 500’s return of mi- lion this year, the lowest at advisers attached to big bro- nus-37%. this point in the calendar kerage firms, which stood at CBOE’s calculations of how since 2009, according to Dea- 48,000 in mid-2014, is pro- the index would have per- logic. Despite record-high jected to shrink to 41,000 by formed before its 2007 cre- stock prices, turbulent mar- 2017, according to Cerulli. ation estimate that annualized kets have given some would- Focus invests in small returns over the 30 years be issuers pause. teams spinning out of big through this June were 10%, Financial-services deals firms and helps set them up narrowly topping the S&P 500. have been mixed since last with technology, trading plat- Risk mitigation was behind fall. Two lenders—Elevate forms and compliance ser- a decision by the Hawaii Em- Credit Inc. and LoanDepot vices. ployees’ Retirement System Inc.—withdrew IPOs just be- It also invests in firms that to invest $1.6 billion of its $15 fore they were supposed to are already independent but billion portfolio in a put-writ- price and begin trading. The want to outsource day-to-day

ing strategy, which it expects FRANK POLICH/REUTERS companies still haven’t re- support operations. Advisers to be fully invested by Octo- The Chicago Board Options Exchange is seen in 2007. The CBOE S&P 500 Put-Write Index, a scheduled second attempts. receive cash and equity in Fo- ber. Based on how the options benchmark for the cash-secured push-write strategy, has returned 4.4% this year through Friday. Yet First Hawaiian Inc. priced cus upfront in exchange for a its August offering at the top portion of their earnings. of its range and is trading Other firms such as High- dustries. from bankruptcy of Horizon above its IPO price. Several Tower and Dynasty Financial ROSS Shaia Hosseinzadeh, head of Rising Energy Natural Resources Co., using a bankers said the success of the Partners offer slightly differ- energy investing at the firm, Barclays High Yield Energy index combination of cash and debt. bank’s IPO could entice more ent models and options for ad- said at a March investor meet- In bankruptcy, creditors can financial-services firms to visers, with varying degrees of Continuedfromthepriorpage ing at New York’s Pierre Hotel 100 sometimes count the face value consider offerings this year. equity and back-office sup- later sold for billions of dollars. the firm sees “tremendous po- of their claims toward a bid for Focus is one of several port. But it isn’t without risk: Mr. tential” in the sector in coming 90 a company’s assets. Ross’s attempt to revive the U.S. years, said people familiar with Renamed International Coal textile industry has stumbled the presentation. Group, the company went on to Currencies amid stiff competition from At the time, he said the firm 80 buy up smaller coal producers China. had spent about $300 million and, in 2011, was sold to Arch U.S.-dollar foreign-exchange rates in late New York trading US$ vs, US$ vs, U.S. crude futures are trading on distressed oil-and-gas com- 70 Coal Inc. for $3.4 billion. The in- Fri YTD chg Fri YTD chg below $50 a barrel, down from pany debt and planned to spend vestment made WL Ross about Country/currency in US$ per US$ (%) Country/currency in US$ per US$ (%) about $100 in mid-2014. As of “a similar amount” more by the 2.5 times its investment, a per- Americas Vietnam dong .00004486 22294 0.7 60 Aug. 1, 90 oil-and-gas compa- end of the summer, the people son familiar with the firm said. Argentina peso .0670 14.9170 15.3 Europe nies had filed for bankruptcy in said. Some of Mr. Ross’s invest- Brazil real .3120 3.2050 –19.1 Czech Rep. koruna .04191 23.861 –4.1 the U.S. and Canada since the Distressed-debt investors 50 ments haven’t gone as planned. Canada dollar .7770 1.2870 –7.0 Denmark krone .1522 6.5713 –4.4 start of 2015, according to law largely abandoned the industry The market value of Mr. Ross’s Chile peso .001509 662.50 –6.5 Euro area euro 1.1326 .8830 –4.1 –10.0 –5.6 firm Haynes & Boone LLP. last fall after early bets soured. International Textile Group Colombia peso .0003499 2857.75 Hungary forint .003647 274.19 40 Ecuador US dollar 11unch Iceland krona .008575 116.62 –10.4 While Mr. Ross, 78 years old, Crude fell to as low as $27.30 a Inc., a roll-up of bankrupt textile Mexico peso .0549 18.2199 5.9 Norway krone .1217 8.2180 –7.1 plays a less active role in the barrel in February, and even the 2015 ’16 companies, has fallen to a few Peru new sol .3010 3.323 –2.7 Poland zloty .2628 3.8058 –3.0 firm’s investments these days, highest-ranking debt of energy Note: As of Aug. 18 Source: Barclays million dollars. WL Ross is the Uruguay peso .03503 28.5500 –4.5 Russia ruble .01565 63.910 –11.1 the former Rothschild & Co. producers—first in line for re- THE WALL STREET JOURNAL. largest shareholder of Dallas Venezuela b. fuerte .100150 9.9851 58.4 Sweden krona .1193 8.3793 –0.8 banker’s investing philosophy payment in bankruptcy—fell to natural-gas producer Exco Re- Asia-Pacific Switzerland franc 1.0409 .9607 –4.1 Turkey lira .3414 2.9293 0.4 Australian dollar .7626 1.3113 –4.4 continues to hold sway. His dep- discounted levels. distress-for-control strategy. sources Inc., whose shares have Ukraine hryvnia .0396 25.2395 5.2 China 2.4 uties think now is the time to As the slump heads into its He pieced together bankrupt lost more than 70% of their yuan .1503 6.6523 12.7 0.03 UK pound 1.3076 .7648 put that strategy to work in the third year, private-equity firms steel producers Bethlehem value the past two years. Hong Kong dollar .1290 7.7534 India rupee .01489 67.137 1.4 Middle East/Africa energy industry. are starting to spend the tens of Steel, Acme Steel, Weirton Steel Despite the risks, 2016 could Indonesia rupiah .0000759 13175 –4.8 Bahrain dinar 2.6537 .3768 –0.1 The plan is to take control of billions of dollars they raised and LTV Steel to form Interna- be one of the best years for en- Japan yen .009979 100.21 –16.7 Egypt pound .1126 8.8784 13.4 oil-and-gas firms through debt for energy investments. WL tional Steel Group in 2002. He ergy private-equity investing in Kazakhstan tenge .002954 338.48 –0.1 Israel shekel .2652 3.7708 –3.1 investments and acquire compa- Ross, Apollo Global Manage- took the conglomerate public in recent history, Mr. Hosseinza- Macau pataca .1253 7.9826 –0.3 Kuwait dinar 3.3193 .3013 –0.7 nies or individual assets in tra- ment LLC, Oaktree Capital 2003 and sold it to Indian bil- deh said at the March investor Malaysia ringgit .2492 4.0132 –6.7 Oman sul rial 2.5988 .3848 –0.04 –6.0 –0.1 ditional buyouts, according to Group LLC and other investors lionaire Lakshmi Mittal two meeting, according to attendees. New Zealand dollar .7272 1.3751 Qatar rial .2747 3.640 Pakistan rupee .00955 104.700 –0.2 Saudi Arabia riyal .2666 3.7504 –0.1 investor materials reviewed by that specialize in distressed years later for $4.5 billion. The He cited a growing need Philippines peso .0216 46.388 –1.0 South Africa rand .0741 13.5035 –12.7 The Wall Street Journal. WL debt are targeting the troubled firm made more than 12.5 times among even well-positioned en- Singapore dollar .7429 1.3460 –5.1 Ross anticipates these deals producers that might be forced its money, a person familiar ergy companies for cash at a South Korea won .0008964 1115.57 –5.1 Close Net Chg % Chg YTD % Chg eventually could give it a plat- to hand over control to credi- with the matter said. time when few are able to sell Sri Lanka rupee .0068766 145.42 0.8 WSJ Dollar Index 85.56 0.36 0.42 –5.12 form to roll up energy assets as tors. In 2004, he joined with A.T. bonds or stock to raise money, Taiwan dollar .03163 31.617 –4.0 Sources: Tullett Prebon, WSJ Market Data Group Thailand baht .02887 34.640 –3.9 it did with other out-of-favor in- Mr. Ross is a veteran of this Massey Coal Co. to buy assets the people said.

THE WALL STREET JOURNAL. Monday, August 22, 2016 | C3 GLOBAL FINANCE Bank-Loan Startup Ties Face Curbs Goldman

FDIC proposes greater and state regulatory moves to should set “performance In recent years, fast-grow- ships are sometimes known Does Deal curtail the ability of the standards for third parties” ing online lenders have out- as “rent-a-charter,” since the supervisory attention young firms to bypass state and “require access to data.” sourced the technical parts of lender pays the bank to take to ‘rent-a-charter’ laws. The scrutiny also aligns Fewer than 50 U.S. banks lending to bank partners or on its status as a national fi- In Korea with a broader effort by U.S. work closely with online have lent through individual nancial institution not subject BY KWANWOO JUN arrangements watchdogs to focus on risks lenders, estimates Brian state licenses. to state usury laws that cap of banks using outside part- Korn, a partner at Manatt, Among the most active interest rates. SEOUL—Goldman Sachs BY TELIS DEMOS ners. Phelps & Phillips LLP. “The banks working with online The bank reviews the Group Inc. and private-equity AND PETER RUDEGEAIR Though the FDIC has had FDIC wants to make sure lenders are WebBank, a unit credit policies submitted by firm EastBridge Partners guidelines for relationships these banks are doing their of conglomerate Steel Part- its online partner, then uses have agreed to acquire a South Federal and state regula- between banks and outside homework and aren’t just ners Holdings LP, and Cross its capital to fund each loan Korean kitchen-appliance tors are increasingly scruti- vendors, the new proposal fo- puppets,” he said. He added River Bank in New Jersey. until an investor ultimately maker in a deal reported to nizing partnerships between cuses specifically on lending that in his experience such The banks declined to com- takes it over. The whole pro- have an estimated value of banks and online lenders, re- partners, including proposing banks were “very focused on ment on the FDIC guidelines. cess typically takes a day or $160 million. ducing some uncertainty yearly examinations rather safety and soundness, even The FDIC is seeking comment two. This marks the second about the rules in an area than every 18 months. It also more so than other banks of on the proposal. Some experts argue rent-a- South Korean takeover deal where the startups have recommends that banks their size.” The lender-bank partner- charter arrangements reduce announced by the New York- thrived. risk. Taxpayers aren’t in dan- based investment bank in as Financial-technology up- ger of being on the hook if a many months. starts such as LendingClub loan fails, while borrowers Goldman and EastBridge Corp., Avant Inc. and Prosper are given wider access to Partners, which is based in Marketplace Inc. have raised credit even if banks don’t Seoul, said Sunday in an hundreds of millions of dol- want to take risks. emailed statement that they lars in funding partly on the Online lenders that partner would acquire a majority premise that they can offer with banks, such as Elevate stake in Happycall Co., which borrowers better terms than Credit Inc., have already been makes frying pans, ceramic banks, which must shoulder subject to some FDIC exami- pots, blenders and other cook- larger compliance burdens. nations, according to its chief ware. The startups’ regulatory executive, Ken Rees, because advantage may be fleeting. under a decadesold law, a Goldman and its Last month, the Federal De- bank’s primary federal regu- posit Insurance Corp. pro- lator has the authority to ex- partner will acquire posed guidelines, including amine certain service provid- the cookware maker one that banks that partner ers and vendors. with third-party firms to Meanwhile, court decisions for $160 million. make loans “will generally re- in Maryland and West Vir- ceive increased supervisory ginia over the past two years attention.” defended state regulatory ac- Happycall’s founder and That may enable increased tions to stop an online lender chairman, Hyun Sam Lee, scrutiny of online lenders from making loans at interest would be a minority share- even though they aren’t rates higher than the states holder in the company after banks. permit, though the lender the transaction closes, accord-

The proposed change adds BRENDAN HOFFMAN/BLOOMBERG NEWS was working with a partner ing to the statement, which of- to a flurry of legal activity Proposed FDIC guidelines add to a flurry of legal activity and state regulatory moves. bank. fered no financial details of the deal. Local media reported an es- timated deal value of 180 bil- lion won ($161.5 million) for a BofA’s Deignan Is Leaving to Join Lazard 90% stake of Happycall. Gold- man and EastBridge Partners BY MAUREEN FARRELL porate governance advisory in initial public offering activ- Before that, she spent 11 years Ms. Deignan’s planned area couldn’t be reached for further work. ity this year, in what has been at Bank of America, where she of focus at Lazard—activism— comment over the weekend. Mary Ann Deignan, co-head Craig Coben, who is cur- the lowest-volume year since worked in equity capital mar- has been a dominant force in Happycall couldn’t be reached of global equity capital mar- rently Bank of America’s co- 2009 during the depths of the kets, syndicate and institu- corporate boardrooms. Activist for comment. kets at Bank of America Corp., head of global equity capital financial crisis. tional sales before joining UBS. investors have seen their assets Happycall recorded revenue is leaving the bank to join La- markets, will become the sole Ms. Deignan rejoined Bank This year, IPO volume is under management increase of 132 billion won and operat- zard, according to a spokes- head of the group. of America in 2011 as head of down more than 50% from last sharply in recent years, and last ing profit of 10.7 billion won man for Bank of America. Mr. Coben and Ms. Deignan Americas equity capital mar- year’s volume by mid-August, year, these investors launched for last year, according to the Ms. Deignan will be part of were named global equity cap- kets after spending seven according to Dealogic data. more campaigns in the U.S. company’s regulatory filings. the Lazard corporate-pre- ital markets co-heads in 2014. years at UBS Group AG, where Only 62 companies have gone than any other year on record. Mr. Lee owned a 89.5% stake paredness team where she will Ms. Deignan’s departure she became head of America public on U.S. exchanges this —Telis Demos in the company at the end of be focused on activist and cor- comes amid a sharp slowdown equity capital markets in 2007. year, raising $12.8 billion. contributed to this article. 2015, the filings showed. INVESTING WORKS YOUR BETTER GOALS WHEN WE WORK TOGETHER.

OUR Get to know your portfolio. With TECHNOLOGY Amerivest®, you can track your investment goals in real time, as your portfolio is managed with human expertise and advanced technology. From tuition to retirement, it’s our business to bring it all together.

The best returns aren’t just measured in dollars. OUR INSIGHTS

Visit tdameritrade.com/amerivest to invest in an Amerivest Portfolio.

All investments involve risk, and successful results are not guaranteed. This is not an offer or solicitation in any jurisdiction where we are not authorized to do business. Minimum investment of $25,000 required. Amerivest is an investment advisory service of Amerivest Investment Management, LLC, an affiliated registered investment advisor. TD Ameritrade, Inc., member FINRA/SIPC. © 2016 TD Ameritrade IP Company, Inc.

C4 | Monday, August 22, 2016 THE WALL STREET JOURNAL. MARKETS DIGEST CLOSED-END FUNDS

Listed are the 300 largest closed-end funds as 52 wk measured by assets. Prem Ttl Closed-end funds sell a limited number of shares and Dow Jones Industrial Average S&P 500 Index invest the proceeds in securities. Unlike open-end Fund (SYM) NAV Close /Disc Ret Last Year ago Last Year ago funds, closed-ends generally do not buy their shares Gabelli Dividend & Incm GDV 22.11 19.99 -9.6 13.7 back from investors who wish to cash in their holdings. 6.05 5.83 -3.6 15.9 18552.57 t23.90, or 0.13% last week Trailing P/E ratio * 20.09 15.75 2183.87 t0.18, or 0.01% last week Trailing P/E ratio * 24.85 21.63 Instead, fund shares trade on a stock exchange. Gabelli Equity Trust GAB 40.23 33.05 -17.8 5.2 18.02 15.57 18.60 17.42 a-The NAV and market price are ex dividend. b-The Genl American Investors GAM High, low, open and close for each of P/E estimate * High, low, open and close for each of P/E estimate * NAV is fully diluted. c-NAV is as of Thursday’s close. d- HnckJohn TxAdv HTD 26.36 24.69 -6.3 30.7 2.55 2.59 2.10 2.06 NAV is as of Wednesday’s close. e-NAV assumes rights 6.15 5.20 -15.4 7.9 the past 52 weeks Dividend yield the past 52 weeks Dividend yield offering is fully subscribed. f-Rights offering in process. Liberty All-Star Equity USA All-time high 18636.05, 08/15/16 All-time high: 2190.15, 08/15/16 g-Rights offering announced. h-Lipper data has been Royce Micro-Cap RMT 9.17 7.83 -14.6 10.2 adjusted for rights offering. j-Rights offering has Royce Value Trust RVT 15.00 12.80 -14.7 13.4 expired, but Lipper data not yet adjusted. l-NAVasof previous day. o-Tender offer in process. v-NAV is Source Capital SOR 40.55 37.22 -8.2 8.1 converted at the commercial Rand rate. w-Convertible Tri-Continental TY 25.24 21.50 -14.8 11.7 Current divisor 0.14602128057775 Note-NAV (not market) conversion value. y-NAV and Zweig Fund ZF 14.41 12.92 -10.3 6.4 18500 2150 market price are in Canadian dollars. NA signifies that the information is not available or not applicable. NS Specialized Equity Funds signifies fund not in existence of entire period. Adams Natural Rscs Fd PEO 23.33 20.14 -13.7 13.7 200-day moving average 200-day moving average 12 month yield is computed by dividing income AllnzGI NFJ Div Interest NFJ 14.54 12.92 -11.1 6.9 18000 2100 dividends paid (during the previous twelve months for periods ending at month-end or during the previous AlpnGlblPrProp AWP 6.83 5.73 -16.1 6.3 fifty-two weeks for periods ending at any time other ASA Gold & Prec Metals ASA 17.73 16.28 -8.2 97.2 than month-end) by the latest month-end market price BlkRk Enh Cap Inco CII 14.70 13.94 -5.2 7.6 adjusted for capital gains distributions. 17500 2050 Source: Lipper BlkRk Engy Res Tr BGR 15.57 14.36 -7.8 10.4 Friday, August 19, 2016 BlackRock Enh Eq Div Tr BDJ 8.90 8.05 -9.6 15.8 52 wk Blackrock Global Trust BOE 13.86 12.20 -12.0 4.8 Prem Ttl BlkRk Health Sci BME 34.70 35.35 +1.9 -3.7 17000 2000 Fund (SYM) NAV Close /Disc Ret BlkRk Intl Grwth&Inco BGY 6.65 5.94 -10.7 1.1 General Equity Funds BlackRck Rscs Comm Str Tr BCX 9.55 8.01 -16.1 12.0 Week's high Adams Divers Equity Fd ADX 15.74 13.21 -16.1 5.8 BlackRock Science & Tech BST 20.32 18.23 -10.3 18.7 Boulder Grwth & Inco BIF 10.62 8.50 -20.0 15.3 20.45 19.83 -3.0 20.2 16500 1950 25.67 20.80 -19.0 14.5 BlackRock Utility & Infr BUI DOWN UP Central Securities CET CBREClarionGlblRlEstIncm IGR 9.72 8.35 -14.1 14.3 CohSteer Opprtnty Fd FOF 13.54 12.19 -10.0 15.4 Monday's open t Friday's close Central Fund of Canada CEF 14.80 14.05 -5.1 27.1 Cornerstone Strategic CLM 14.08 16.49 +17.1 32.4 65-day moving average EtnVnc TaxAdvDiv EVT 21.80 21.23 -2.6 20.1 Continued on Page C5 Friday's close Monday's open 16000 1900 t 65-day moving average Week's low 15500 1850 New to the Market Bars measure the point change from Monday's open Public Offerings of Stock 15000 1800 IPOs in the U.S. Market A S O N D J F M A M J J A A S O N D J F M A M J J A None expected this week Primary t NYSE weekly volume, in billions of shares market t Composite Financial Flashback Lockup Expirations 30 None expected this week 20 The Wall Street Journal, August 22, 1997 10 Comverse Technology Inc. said it agreed to acquire rival IPO Scorecard 0 Boston Technology Inc. in a stock deal valued at $840.7 Performance of IPOs, most-recent listed first A S O N D J F M A M J J A million, or $30.79 a share. % Chg From % Chg From Company SYMBOL Friday3s Offer 1st-day Company SYMBOL Friday3s Offer 1st-day * P/E data based on as-reported earnings from Birinyi Associates Inc. IPO date/Offer price close ($) price close IPO date/Offer price close ($) price close Airgain 9.95 24.4 24.4 At Home Grp 15.08 0.5 –1.5 Major U.S. Stock-Market Indexes Nasdaq Composite AIRG Aug. 12/$8.00 HOME Aug. 5/$15.00 Medpace 28.53 24.0 2.7 First Hawaiian 26.25 14.1 8.2 Latest Week 52-Week % chg s 5.48, or 0.10% l MEDP Aug. 11/$23.00 FHB Aug. 4/$23.00 High Low Close Net chg % chg Low Close ( ) High % chg YTD 3-yr. ann. –1.7 53.1 Dow Jones last week Protagonist Thera 11.80 0.9 Talend 27.56 8.1 PTGX Aug. 11/$12.00 TLND July 29/$18.00 Industrial Average 18668.44 18468.68 18552.57 -23.90 -0.13 15660.18 l 18636.05 12.7 6.5 7.3 Atomera 8.03 7.1 –0.6 Kinsale 19.94 24.6 8.7 Transportation Avg 7943.20 7819.36 7930.35 123.17 1.58 6625.53 l 8301.8 0.7 5.6 7.8 ATMR Aug. 5/$7.50 KNSL July 28/$16.00 5270 0.3 32.3 693.60 667.43 683.21 -8.95 -1.29 541.97 l 723.51 14.3 18.2 12.7 Gemphire Thera 10.03 9.0 Tactile Sys 13.23 19.4 Utility Average GEMP Aug. 5/$10.00 TCMD July 28/$10.00 l Total Stock Market 22676.56 22391.49 22565.54 9.82 0.04 18663.11 22641.07 9.6 6.9 9.4 Sources: WSJ Market Data Group; FactSet Research Systems 5240 Barron's 400 553.20 544.81 550.84 2.24 0.41 446.15 l 552.55 4.7 6.7 7.4 Other Stock Offerings Nasdaq Stock Market 5210 Secondaries and follow-ons expected this week in the U.S. market 5271.36 5197.23 5238.38 5.48 0.10 4266.84 l 5262.02 11.3 4.6 13.4 Nasdaq Composite None expected this week Nasdaq 100 4837.67 4772.43 4806.14 -0.94 -0.02 3947.80 l 4827.12 14.5 4.6 16.1 5180 Off the Shelf Standard & Poor's 12 15 16 17 18 19 l “Shelfregistrations”allowacompanytoprepareastockorbondforsale, 500 Index 2193.81 2168.50 2183.87 -0.18 -0.01 1829.08 2190.15 10.8 6.8 9.9 August withoutsellingthewholeissueatonce.Corporationssellasconditionsbecome MidCap 400 1571.81 1541.81 1562.80 5.03 0.32 1238.82 l 1569.1 9.8 11.7 9.3 DJ US TSM favorable.Herearetheshelfsales,ortakedowns,overthelastweek: SmallCap 600 751.99 741.01 748.85 4.69 0.63 588.26 l 750.96 10.6 11.5 9.2 s 9.82, or 0.04% Takedown date/ Deal value Registration Issuer/Industry Registration date ($ mil.) (mil.) Bookrunner(s) Other Indexes last week Jones Energy Aug. 19 $80.0 $150.0 Credit Suisse, JPM 0.57 l Russell 2000 1243.83 1221.72 1236.77 6.95 953.72 1241.86 6.9 8.9 6.9 Oil & Gas May 25,316 l NYSE Composite 10892.15 10754.65 10829.15 6.74 0.06 9029.88 10863.01 6.2 6.8 4.9 Jones Energy Aug. 19 $58.2 $150.0 Credit Suisse, JPM 3 Value Line 487.48 479.87 485.55 2.64 0.55 383.82 l 486.91 5.4 8.9 3.9 22650 Oil & Gas May 25, 16 $55.0 NYSE Arca Biotech 3399.16 3303.20 3317.64 -21.86 -0.65 2642.53 l 4065.43 -11.9 -13.0 18.5 OncoMed Pharmaceuticals Aug. 18 $25.0 Leerink Prtnrs Healthcare June 12,315 539.49 530.86 533.49 -3.46 -0.64 477.25 l 566.49 -5.3 -1.5 7.5 NYSE Arca Pharma 22550 Eiger Biopharmaceuticals Aug. 18 $20.0 $128.1 Jefferies KBW Bank 70.29 69.27 70.23 1.18 1.71 56.51 l 76.77 -3.8 -3.9 3.2 Healthcare June 17,316 PHLX§ Gold/Silver 113.04 106.60 107.69 -4.04 -3.62 38.84 l 112.86 106.4 137.7 0.1 Concho Resources Aug. 16 $1,354.8 ... Credit Suisse, BofA ML, 22450 Oil & Gas Aug. 6,315 JPM PHLX§ Oil Service 168.90 161.12 166.30 5.91 3.69 128.61 l 188.72 1.6 5.4 -13.5 PG&E Aug. 16 $309.9 BofA ML, MS 2.21 l ... PHLX§ Semiconductor 798.85 780.40 797.06 17.21 559.18 797.06 37.8 20.1 20.2 Utility & Energy Feb. 11,314 22350 CBOE Volatility 13.71 11.33 11.34 -0.21 -1.82 11.34 l 40.74 -59.5 -37.7 -9.1 INC Research Holdings Aug. 16 $195.1 ... Credit Suisse 12 15 16 17 18 19 Healthcare Dec. 1,315
Philadelphia Stock Exchange Sources: SIX Financial Information; WSJ Market Data Group August Recro Pharma Aug. 16 $14.9 $118.7 Piper Jaffray Healthcare Aug. 20,315 Univar Aug. 15 $397.9 $385.8 GS Chemicals Aug. 15,316 International Stock Indexes Commodities and Hospitality Properties TrustAug. 15 $338.3 ... Citi, BofA ML, MS Real Estate/Property Aug. 21,315 Latest Week 52-Week Range YTD Currencies Parsley Energy Aug. 15 $279.7 $1,175.5 JPM, BMO Cptl Mkts, Region/Country Index Close % chg Low Close High % chg Last Week YTD Oil & Gas June 5,315 RBC Cptl Mkts, Close Net chg % Chg % chg Scotiabank, UBS, WFS World The Global Dow 2455.47 0.41 2047.44 • 2461.56 5.1 $32.1 324.55 –0.21 272.15 326.03 5.4 DJ Commodity 535.74 14.81 2.84 18.06 Golub Capital BDC Aug. 15 $1,000.0 WFS DJ Global Index • Finance Jan. 10,314 DJ Global ex U.S. 218.28 –0.44 184.52 • 219.65 3.8 TR/CC CRB Index 188.78 6.10 3.34 7.10 Global Dow Euro 2041.66 –0.88 1699.54 • 2141.23 0.8 Crude oil, $ per barrel 48.52 4.03 9.06 30.99 Public and Private Borrowing DJ TSM Global 3349.28 0.12 2795.15 • 3353.95 5.7 Natural gas, $/MMBtu 2.584 -0.002 -0.08 10.57 Global ex U.S. 2215.07 0.07 1863.63 • 2216.63 4.4 Gold, $ per troy oz. 1340.40 4.60 0.34 26.42 Treasurys Developed ex U.S. 2152.50 –0.10 1843.94 • 2191.38 2.1 Monday, August 22 Wednesday, August 24 U.S. Dollar Index 94.50 -1.18 -1.24 -4.25 Global Small-Cap 4569.07 0.29 3665.30 • 4576.30 8.4 Auction of 13-week bill; Auction of two-year FRN; WSJ Dollar Index 85.56 -0.82 -0.95 -5.12 Global Large-Cap 3176.96 0.10 2667.12 • 3181.28 5.4 announced on Aug. 18; settles on Aug. 25 announced on Aug. 18; settles on Aug. 26 Euro, per dollar 0.8830 -0.0129 -1.44 -4.11 Auction of 26-week bill; Auction of five-year note; Americas DJ Americas 527.41 0.01 433.35 • 529.33 8.2 Yen, per dollar 100.21 -1.08 -1.07 -16.69 announced on Aug. 18; settles on Aug. 25 announced on Aug. 18; settles on Aug. 31 Brazil Sao Paulo Bovespa 59098.92 1.37 37497.48 • 59323.83 36.3 U.K. pound, in dollars 1.31 1.21 Canada S&P/TSX Comp 14687.46 –0.41 11843.11 • 14801.23 12.9 0.02 -11.26 Tuesday, August 23 Thursday, August 25 Mexico IPC All-Share 48297.46 –0.14 40265.37 • 48694.90 12.4 52-Week Auction of two-year note; Auction of seven-year note; Low Close(l) High % Chg announced on Aug. 18; settles on Aug. 31 announced on Aug. 18; settles on Aug. 31 Chile Santiago IPSA 3232.33 –0.31 2759.77 • 3250.16 9.8 9.35 Auction of four-week bill; Europe Stoxx Europe 600 340.14 –1.72 303.58 • 385.43 –7.0 DJ Commodity 420.23 l 552.44 announced on Aug. 22; settles on Aug. 25 Stoxx Europe 50 2838.07 –1.77 2566.26 • 3293.71 –8.5 TR/CC CRB Index 155.01 l 202.69 -1.34 Eurozone Euro Stoxx 321.67 –2.03 284.92 • 365.68 –6.8 Crude oil, $ per barrel 26.21 l 51.23 19.95 Public and Municipal Finance 2968.20 –2.52 2680.35 3506.45 –9.2 Euro Stoxx 50 • Natural gas, $/MMBtu 1.64 l 2.99 -3.44 Deals of $ 150 million or more expected this week Belgium Bel-20 3502.53 –1.19 3130.76 • 3760.89 –5.3 Gold, $ per troy oz. 1050.80 l 1364.90 15.59 Final Total Rating Bookrunner/ France CAC 40 4400.52 –2.21 3896.71 • 4984.15 –5.1 Sale maturity Issuer ($mil.) Fitch Moody’s S&P Bond Counsel(s) Germany DAX 10544.36 –1.58 8752.87 • 11382.23 –1.8 l U.S. Dollar Index 92.57 100.20 -0.32 Aug. 24 prelim. Massachusetts 1,500.0 N.R. N.R. N.R. Preliminary/ Israel Tel Aviv 1468.41 0.07 1382.34 • 1695.11 –3.9 WSJ Dollar Index 84.64 l 91.66 -2.55 Mintz Levin Italy FTSE MIB 16310.06 –4.05 15104 • 22737 –23.9 Cohn Ferris Euro, per dollar 0.86 l 0.95 0.56 Netherlands AEX 448.72 –1.18 382.61 • 472.24 1.6 l -17.89 Aug. 24 June 15, 2033 Portland City- 155.4 N.R. Aa2 AA Prelim./Hawkins Spain IBEX 35 8450.60 –3.05 7645.5 • 10478.3 –11.5 Yen, per dollar 99.88 123.64 Oregon Delafield & 499.65 –1.25 435.21 528.37 –1.1 U.K. pound, in dollars 1.29 l 1.58 -16.67 Sweden SX All Share • Wood Switzerland Swiss Market 8127.28 –2.02 7496.62 • 9016.56 –7.8 U.K. FTSE 100 6858.95 –0.83 5536.97 • 6941.19 9.9 Real-time U.S. stock Aug. 24 June 15, 2033 Portland City- 165.8 N.R. Aa3 AA- Prelim./Hawkins quotes are available on Oregon Delafield & Asia-Pacific DJ Asia-Pacific TSM 1464.93 –0.71 1190.45 • 1475.34 5.4 WSJ WSJ.com. Track most- Wood Australia S&P/ASX 200 5526.70 –0.08 4765.3 • 5587.4 4.4 active stocks, new Aug. 24 prelim. University of 730.0 N.R. Aa1 AA MS/Hawkins China Shanghai Composite 3108.10 1.88 2655.66 • 3651.77 –12.2 .COM Southern Delafield & Hong Kong Hang Seng 22937.22 0.75 18319.58 • 23151.94 4.7 highs/lows, mutual California Wood India S&P BSE Sensex 28077.00 –0.27 22951.83 • 28208.62 7.5 funds and ETFs. Japan Nikkei Stock Avg 16545.82 –2.21 14952.02 • 20012.40 –13.1 Plus, get deeper money-flows data and Aug. 25 June 15, 2034 Illinois 513.0 AA+ N.R. AAA Preliminary/ Singapore Straits Times 2844.02 –0.82 2532.70 • 3083.07 –1.3 email delivery of key stock-market Chapman & Cutler LLP South Korea Kospi 2056.24 0.28 1829.81 • 2056.24 4.8 data. –1.27 7410.34 9200.42 8.3 Taiwan Weighted 9034.27 • All are available free at Aug. 25 prelim. Massachusetts 834.5 AA+ Aa1 N.R. Preliminary/ Mintz Levin Source: SIX Financial Information;WSJ Market Data Group WSJMarkets.com Cohn Ferris Aug. 25 June 15, 2055 Pennsylvania 273.4 AA- Aa3 N.R. Preliminary/ Consumer Rates and Returns to Investor Benchmark Yields and Rates Hghr Ed Ballard Facs Auth Spahr LLP U.S. consumer rates Selected rates Treasury yield curve Forex Race Yen, euro vs. dollar; dollar vs. Aug. 26 prelim. Bexar 329.0 N.R. N.R. N.R. Citi/— A consumer rate against its New car loan Yield to maturity of current bills, (Judson) ISD benchmark over the past year notes and bonds major U.S. trading partners Bankrate.com avg†: 2.92% Aug. 26 prelim. Birmingham 423.9 N.R. N.R. N.R. Goldman & 1.74% Wtrwks & Co/— LightStream 5.00% 24%

4.00% s Swr Board San Diego, CA 866-619-2688 Yen Prime rate 4.00 18 t Think Mutual Bank 1.89% Aug. 26 prelim. California 270.8 N.R. N.R. N.R. Ziegler/— 3.50 Health Facs

Rochester, MN 800-288-3425 3.00 12 t Fin Auth 3.00 Star USA Federal Credit Union 1.95%

One year ago t 2.00 6 WSJ $ index Euro s

New car loan Charleston, WV 800-628-2120 s Aug. 26 prelim. California 497.8 AA- N.R. N.R. BoA Merrill/— t Health Facs 2.50 First Savings Bank of Hegewisch 1.99% 1.00 0 Fin Auth Chicago, IL 773-646-4200 Friday 2.00 0.00 –6 1.99% Aug. 26 prelim. Dallas Co- 170.0 N.R. N.R. N.R. Siebert S O N D J F M A M J J A Lake Elmo Bank 1 3 6 1 2 3 5 710 30 2015 2016 Texas Brandford Lake Elmo, MN 651-777-8365 2015 2016 month(s) years Shank & Co/— Yield/Rate (%) 52-Week Range (%) 3-yr chg maturity Aug. 26 prelim. Maryland Dept 328.3 N.R. N.R. AA J P Morgan l Interest rate Last ( )Week ago Low 0 2 4 6 8 High (pct pts) Sources: Ryan ALM; Tullett Prebon; WSJ Market Data Group of Hsg & Securities Federal-funds rate target 0.25-0.5 0.25-0.5 0.00 l 0.50 0.25 Corporate Borrowing Rates and Yields Comm Dev LLC/— Prime rate* 3.50 3.50 3.25 l 3.50 0.25 Aug. 26 prelim. Phoenix City- 232.2 N.R. N.R. N.R. Piper Libor, 3-month 0.82 0.82 0.32 l 0.82 0.55 Spread +/- Treasurys, Arizona Jaffray/— Yield (%) in basis pts, 52-wk Range Total Return l Money market, annual yield 0.26 0.27 0.22 0.30 -0.18 Bond total return index Last Wk ago Last Low High 52-wk 3-yr Source:Thomson Reuters/Ipreo Five-year CD, annual yield 1.20 1.19 1.19 l 1.49 0.00 10-yr Treasury, Ryan ALM 1.580 1.515 6.04 6.51 Corporate Debt 30-year mortgage, fixed† 3.47 3.49 3.43 l 4.08 -1.18 DJ Corporate 2.521 2.507 9.32 6.69 Expected this week 15-year mortgage, fixed† 2.76 2.78 2.73 l 3.34 -0.88 Aggregate, Barclays Capital 1.960 1.910 48 48 70 5.37 4.58 Expected Years to Deal value Rating Jumbo mortgages, $417,000-plus† 4.10 4.11 4.05 l 4.90 -0.68 5.543 wk ending Issuer/Business maturity ($ mil.) Fitch Moody’s S&P Bookrunner(s) 3.07 l -0.64 High Yield 100, Merrill Lynch 5.647 432 432 741 6.309 3.999 Five-year adj mortgage (ARM)† 3.15 2.97 3.86 Aug. 22 PennyMac
$300.0 - - - JPM, Barclays, Fixed-Rate MBS, Barclays 2.090 2.010 19 15 34 3.70 4.30 New-car loan, 48-month 2.92 2.88 2.87 l 3.38 0.46 Purchases residential HY BofA ML, Credit Suisse, 1.336 4.71 l -0.53 Muni Master, Merrill 1.347 -1 -9 5 5.886 5.590 mortgage loans. GS HELOC, $30,000 4.77 4.29 5.01 N/A EMBI Global, J.P. Morgan 5.200 5.248 357 357 538 15.759 7.950 Aug. 22 Marquee Land  B B2 - UBS, Bankrate.com rates based on survey of over 4,800 online banks. *Base rate posted by 70% of the nation's largest Finance vehicle. HY Standard Chartered Bank banks.† Excludes closing costs. Sources: SIX Financial Information; WSJ Market Data Group; Bankrate.com Sources: J.P. Morgan; Ryan ALM; S&P Dow Jones Indices; Barclays Capital; Merrill Lynch HY- High-yield index Source: Dealogic THE WALL STREET JOURNAL. Monday, August 22, 2016 | C5 CLOSED-END FUNDS

Continued from Page C4 52 wk 52 wk Prem12 Mo Prem12 Mo 52 wk Prem Ttl Prem Ttl Fund (SYM) NAV Close /Disc Yld Fund (SYM) NAV Close /Disc Yld Prem Ttl 52 wk Fund (SYM) NAV Close /Disc Ret Prem Ttl Fund (SYM) NAV Close /Disc Ret Fund (SYM) NAV Close /Disc Ret Pioneer High Income Trust PHT 10.32 10.61 +2.8 11.7 Dreyfus Strategic Munis LEO 9.23 9.39 +1.7 5.5 Fund (SYM) NAV Close /Disc Ret FstTrEnhEqtIncFd FFA 15.30 13.55 -11.4 10.3 Tekla Life Sciences HQL 19.41 19.22 -1.0 -12.6 Prud Gl Shrt Dur Hi Yd GHY 16.65 15.30 -8.1 8.6 Eaton Vance Mun Bd Fd EIM 14.74 13.96 -5.3 5.2 General Equity Funds 20.06 17.97 -10.4 12.0 16.56 15.37 -7.2 0.1 16.94 15.93 -6.0 8.3 14.42 14.63 +1.4 5.5 Specialized Equity Funds ClearBridge Amer Engy CBA 8.94 NA -13.2 First Tr Engy Infr Fd FIF Tekla World Hlthcr Fd THW Prudentl Sh Dur Hi Yd Fd ISD Eaton Vance Mun Income EVN First Tr MLP & Engy Incm FEI 15.80 16.30 +3.2 6.0 Tortoise Energy TYG 30.73 32.47 +5.7 5.3 Wells Fargo Incm Opps Fd EAD 9.03 8.39 -7.1 9.1 EV National Municipal Opp EOT 23.33 23.39 +0.3 4.5 Corsair Opportunity:A 9.44 NA NA NS ClearBridge Engy MLP Fd CEM 16.15 NA -18.0 9.46 NA NA -1.9 13.17 NA -9.4 Gabelli Hlthcr & Well GRX 12.28 11.01 -10.3 9.2 Tortoise MLP Fund NTG 20.38 20.17 -1.0 14.8 Wstrn Asset Glbl Hi Inco EHI NA 10.25 NA 11.5 Invesco Adv Mun Incm II VKI 13.02 13.25 +1.8 5.8 Corsair Opportunity:I Clearbridge Engy MLP Opp EMO 5.59 6.63 +18.6 23.1 7.88 7.21 -8.5 10.5 NA 7.17 NA 11.2 7.91 8.19 +3.5 4.7 Griffin Inst Access RE:A 26.84 NA NA 7.8 Clearbridge Engy MLP TR CTR 12.99 NA -7.0 Gabelli Utility Tr GUT Voya Gl Equity Div IGD Wstrn Asset High Inco II HIX Invesco Mun Incm Opps Tr OIA 6.36 6.81 +7.1 43.1 NA 5.11 NA 8.4 14.53 14.66 +0.9 5.9 Griffin Inst Access RE:C 26.65 NA NA 7.1 Cohen & Steers Infra UTF 24.82 21.54 -13.2 13.5 GAMCOGlblGoldNatRscs&Inc GGN Income Preferred Stock Funds Wstrn Asset Opp Fd HIO Invesco Mun Opportunity VMO 10.32 9.75 -5.5 -15.7 11.48 NA NA NA NA 15.25 NA 8.7 14.46 14.10 -2.5 5.7 Griffin Inst Access RE:I 26.91 NA NA 8.1 C&S MLP Incm & Engy Opp MIE 12.41 10.87 -12.4 -12.4 Goldman Sachs MLP Inc Opp GMZ Calamos Strat Fd CSQ West Asst HY Def Opp Fd HYI Invesco Municipal Trust VKQ 7.57 7.39 -2.4 -17.3 26.16 25.35 -3.1 19.4 NA 4.88 NA 8.4 IQI 14.56 14.02 -3.7 5.4 NexPointRlEstStrat;A 20.15 NA NA NS Cohen & Steers Qual Inc RQI 14.74 13.59 -7.8 30.1 Goldman Sachs MLP Energy GER Cohen & Steers Dur Pfd LDP Wstrn Asset Mngd High Inc MHY Invesco Qlty Mun Inco 27.56 28.12 +2.0 27.3 VGM 14.97 14.39 -3.9 5.9 NexPointRlEstStrat;C 20.14 NA NA NS CohnStrsPfdInco RNP 23.57 20.99 -10.9 28.8 John Hancock Finl Opps Fd BTO 26.94 27.67 +2.7 11.6 Cohen & Strs Sel Prf Inco PSF Other Domestic Taxable Bond Funds Invesco Inv Grade Muni 23.90 23.51 -1.6 18.4 NA 14.44 NA 9.3 Invesco Value Mun Incm Tr IIM 17.33 17.17 -0.9 4.8 NexPointRlEstStrat;Z 20.09 NA NA NS Cohen & Steers TR RFI 14.48 13.78 -4.8 21.2 Kayne Anderson Engy TR Fd KYE 12.26 11.21 -8.6 -16.1 FT Interm Duration Pfd FPF Ares Dynamic Credit Alloc ARDC 25.73 24.88 -3.3 22.7 NA 19.26 NA 6.6 MainStay DefinedTerm MMD 20.97 20.56 -2.0 5.7 Resource RE Div Inc:A 10.37 NA NA 9.4 CLSeligmn Prem Tech Gr Fd STK 17.21 17.95 +4.3 28.6 Kayne Anderson MLP Invt KYN 19.77 19.49 -1.4 -16.9 Flaherty & Crumrine Dyn DFP Babson Cap Corp Inv MCI 19.70 22.22 +12.8 32.5 18.85 17.12 -9.2 9.5 MFS Munl Inco MFM 7.68 7.48 -2.6 5.1 Resource RE Div Inc:C 10.35 NA NA 8.6 Divers Real Asset Incm Fd DRA 19.92 17.45 -12.4 13.6 Kayne Andrsn Midstr Engy KMF 16.33 14.81 -9.3 -27.8 Flaherty & Crumrine Pfd FFC BlackRock Multi-Sector IT BIT 22.73 22.77 +0.2 28.0 24.77 24.91 +0.6 6.4 NuvAMTFreeMuniIncm NEA 15.94 14.96 -6.1 4.9 Resource RE Div Inc:D 10.52 NA NA 8.8 Duff & Phelps DNP 9.75 10.60 +8.8 16.6 Macquarie Glbl Infrstrctr MGU 26.25 22.41 -14.6 11.6 John Hancock Pfd Income HPI BlackRock Taxable Mun Bd BBN 22.48 22.82 +1.5 30.6 NA 26.99 NA 9.3 Nuveen AMT-Free Mun Value NUW 17.62 19.18 +8.9 4.0 Resource RE Div Inc:I 10.90 NA NA 9.0 Duff&PhelpsGblUtilIncFd DPG 19.90 17.26 -13.3 13.7 Neuberger Berman MLP Incm NML 10.09 9.13 -9.5 -31.8 John Hancock Pfd II HPF Doubleline Oppor Credit DBL 10.34 NA NA 8.5 6.37 5.77 -9.4 30.2 John Hancock Pfd Inc III HPS 19.98 19.93 -0.3 29.5 Duff & Phelps Utl & Cp Bd DUC 10.31 9.75 -5.4 6.1 Nuveen Div Fnd NAD 16.35 15.89 -2.8 5.3 Resource RE Div Inc:T Eaton Vance Eqty Inco Fd EOI 13.83 13.16 -4.8 13.1 Neubrgr Brm Rl Est Sec Fd NRO Resource RE Div Inc:U 10.37 NA NA 9.4 16.05 14.87 -7.4 15.4 JHancock Pr Div PDT 16.70 17.19 +2.9 41.5 EtnVncLtdFd EVV NA 13.84 NA 8.8 Nuveen Enh AMT-Fr Muni NVG 17.35 16.28 -6.2 4.9 Eaton Vance Eqty Inco II EOS 14.36 13.57 -5.5 10.3 Nuveen Dow 30 Dynamic DIAX Resource RE Div Inc:W 10.52 NA NA 8.9 13.23 12.20 -7.8 23.0 LMP Cap & Inco Fd SCD 13.73 NA 10.8 Franklin Ltd Duration IT FTF NA 11.96 NA 6.3 Nuveen Enh Muni Credit NZF 17.01 15.94 -6.3 5.2 EtnVncRskMngd ETJ 10.42 9.89 -5.1 7.7 NuvDivInco JDD 16.07 16.46 +2.4 5.5 SharesPost 100 26.17 NA NA -0.5 15.54 16.18 +4.1 8.0 Nuveen Engy MLP Fd JMF 13.44 12.67 -5.7 0.8 Nuveen Preferred & Incm JPI 24.72 24.85 +0.5 23.4 Guggenheim Taxable Muni GBAB 24.00 24.12 +0.5 7.4 Nuveen Enhncd Mun Val Fd NEV Etn Vnc Tax Mgd Buy-Write ETB NID 14.36 14.08 -1.9 4.8 Tot Inc+ RE:A 29.11 NA NA 7.1 14.17 15.03 +6.1 12.2 Nuv NASDAQ 100 Dyn Over QQQX 19.74 18.80 -4.8 14.3 Nuveen Preferred Inc Opp JPC 10.58 10.41 -1.6 25.4 KKR Income Opps Fund KIO 17.44 15.81 -9.3 9.4 Nuveen Intermed Dur Mun Eaton Vance BuyWrite Opp ETV Nuveen Invest Qual Muni NQM 16.81 16.50 -1.8 5.6 Tot Inc+ RE:C 28.62 NA NA 6.3 11.54 10.97 -4.9 10.2 Nuveen Real Estate Fd JRS 12.44 11.83 -4.9 22.9 Nuveen Preferred Incm Fd JPS 9.70 9.58 -1.2 14.7 MFS Charter MCR 9.50 8.67 -8.7 8.4 29.35 NA NA 7.4 Eaton Vance Tax-Mng Div ETY NuveenMuniIncoOpp Fd NMZ 14.09 15.14 +7.5 6.1 Tot Inc+ RE:I 11.18 11.06 -1.1 5.5 BXMX 13.43 13.11 -2.4 12.0 TCW Strategic Income Fund TSI 5.38 NA 6.0 MFS Multimkt MMT 6.81 6.19 -9.1 8.5 27.41 NA NA 8.9 Eaton Vance Tax-Mngd Opp ETW Nuveen S&P 500 Buy-Write Nuveen Muni Mkt Opp NMO 16.16 15.14 -6.3 5.0 Versus Cap MMgr RE Inc:F 9.38 8.97 -4.4 8.6 30.77 NA 13.5 Zweig Total Return ZTR 13.48 NA NA NA Nuveen Build Am Bd Fd NBB 23.16 22.67 -2.1 5.8 27.47 NA NA 9.2 EtnVncTxMngGlDvEqInc EXG Reaves Utility Fund UTG Nuveen Muni Value Fund NUV 10.65 10.76 +1.0 3.6 Versus Cap MMgr RE Inc:I Fiduciary/Clymr Opp Fd FMO 15.10 14.85 -1.7 -10.4 Tekla Hlthcr Investors HQH 25.95 26.43 +1.8 -7.8 Convertible Sec's. Funds PIMCO Corporate & Incm PTY NA 14.91 NA 10.7 11.62 NA NA 11.9 16.75 14.80 -11.6 8.2 NA 15.67 NA 8.8 Nuveen Performance Plus NPP 17.24 16.62 -3.6 5.2 Wildermuth Endwmnt Str FT Energy Inc & Growth Fd FEN 25.92 26.15 +0.9 5.8 Tekla Healthcare Opps Fd THQ 19.47 18.06 -7.2 6.7 AdvntClymrFd AVK PIMCO Corporate & Incm PCN Wildermuth Endwmnt S:C 11.57 NA NA NS 6.65 6.70 +0.8 8.3 NA 9.91 NA 12.5 Nuveen Premium Inco Muni NPI 16.41 15.38 -6.3 5.3 AllianzGI Conv & Incm NCV PIMCO HiInco PHK Income Preferred Stock Funds 5.93 5.84 -1.5 2.7 Nuveen Prem Inco Muni 2 NPM 16.39 15.34 -6.4 5.5 AllianzGI Conv & Incm II NCZ PIMCO Inco Str Fd PFL NA 10.57 NA 10.3 MultiStrat Gro & Inc:A 15.81 NA NA 5.2 21.67 19.24 -11.2 15.4 NA 9.48 NA 10.9 Nuveen Premier Muni Inc NPF 16.08 15.10 -6.1 5.2 AllianzGI Equity & Conv NIE PIMCO Incm Strategy Fd II PFN 16.65 15.57 -6.5 4.8 MultiStrat Gro & Inc:C 15.62 NA NA 3.9 | Calamos Conv Hi Inco Fd CHY 11.58 NA NA NA Putnam Mas Inco PIM 4.85 4.53 -6.6 7.0 Nuveen Select Quality NQS 15.96 NA NA 6.0 Borrowing Benchmarks WSJ.com/bonds Nuveen Sel Tax Free NXP 15.97 15.87 -0.6 3.4 MultiStrat Gro & Inc:I Calamos CHI 10.95 NA NA NA Putnam Premier Income Tr PPT 5.34 4.87 -8.8 6.5 MultiStrat Gro & Inc:L 15.68 NA NA 4.7 14.38 13.14 -8.6 8.4 Nuveen Sel TF NXQ 15.24 14.95 -1.9 3.5 World Equity Funds Wells Fargo Multi-Sector ERC 13.82 16.80 +21.6 5.7 Convertible Sec's. Funds August 19, 2016 Alpine Tot Dyn Div AOD 9.08 7.84 -13.7 5.9 World Income Funds PIMCO MuniFd PMF 20.26 19.34 -4.5 2.0 Money Rates Pimco Muni Inc II PML 12.95 13.80 +6.6 5.6 Calmos Dyn Conv and Inc CCD Calamos Glbl Dyn Inc CHW 8.48 NA NA NA Abeerden Asia-Pacific FAX 5.86 5.31 -9.4 5.4 PIMCO Muni Inc III PMX 11.74 12.87 +9.6 5.7 World Equity Funds Key annual interest rates paid to borrow or lend money in U.S. and Cdn Genl Inv CGI 26.43 18.35 -30.6 2.2 Aberdeen Global FCO 9.76 9.02 -7.6 6.8 9.15 NA NA 7.8 Pioneer Mun Hi Inc Adv Tr MAV 12.87 13.32 +3.5 6.3 BMO LGM Front ME international markets. Rates below are a guide to general levels but don’t China Fund CHN 18.50 15.95 -13.8 11.3 Etn Vnc Short Dur Fd EVG NA 13.61 NA 6.1 Pioneer Mun Hi Incm Tr MHI 13.66 13.64 -0.1 5.8 Prem12 Mo Clough Global Opp Fd GLO 11.79 9.74 -17.4 -5.4 Legg Mason BW Glbl Incm BWG NA 13.74 NA 10.5 always represent actual transactions. Putnam Tr PMM 8.34 8.02 -3.8 5.4 Fund (SYM) NAV Close /Disc Yld EtnVncTxAdvGblDiv ETG 16.61 15.40 -7.3 6.8 MS EmMktDomDebt EDD 9.33 8.45 -9.4 9.8 Putnam Muni Opportunities PMO 14.02 13.60 -3.0 5.3 U.S. Mortgage Bond Funds Inflation Other short-term rates EatonVance TxAdv Opport ETO 23.07 22.64 -1.9 9.8 PIMCO Dynamic Credit PCI NA 19.90 NA 11.0 NA 15.46 NA 5.0 18.15 16.35 -9.9 NS NA 28.60 NA 14.4 Wstrn Asset Mngd Muni MMU Vertical Capital Income 12.72 NA NA 2.9 July index Chg From (%) Week 52-Week First Trust Dynamic Eur FDEU PIMCO Dynamic Income Fund PDI Western Asset Mun Tr Fund MTT NA 24.95 NA 4.3 Latest high low GDL Fund GDL 11.92 9.97 -16.4 5.9 PIMCO Income Opportunity PKO NA 23.89 NA 9.4 Loan Participation Funds level June '16 July '15 ago Single State Muni Bond 504 Fund 10.13 NA NA 3.4 India Fund IFN 29.08 25.35 -12.8 9.9 PIMCO Strat Income Fund RCS NA 10.10 NA 9.5 16.34 16.91 +3.5 5.1 Call money 11.65 10.04 -13.8 7.0 12.13 11.08 -8.7 7.2 BlackRock CA Municipal Tr BFZ FS Global Crdt Opptys D NA NA NA 2.7 U.S. consumer price index Japan Sml Cap JOF Templeton Emerging TEI 16.51 16.28 -1.4 4.9 6.37 NA NA 5.7 2.25 2.25 2.25 2.00 39.58 34.99 -11.6 15.9 7.09 6.41 -9.6 4.6 BlkRk MuniHldgs CA Qlty MUC Invesco Sr Loan A 240.647 –0.16 0.8 Korea Fund KF Templeton Global GIM 16.56 16.00 -3.4 5.4 6.37 NA NA 5.7 All items 17.35 NA 8.3 NA 16.42 NA 7.7 Blkrck MunHl NJ Qlty MUJ Invesco Sr Loan B 247.768 –0.02 2.2 Mexico Fund MXF Wstrn Asset Emerg Mkts ESD 15.68 15.13 -3.5 5.1 6.38 NA NA 5.0 Core Commercial paper 23.00 18.82 -18.2 26.3 NA 11.79 NA 7.3 BlRk MuHldg NY Qlty MHN Invesco Sr Loan C MS China a Shr Fd CAF Wstrn Asset Emerg Mkt II EMD BlkRk MuniYld CA Fd MYC 17.07 17.58 +3.0 5.0 6.37 NA NA 6.0 30 to 270 days n.q...... 32.67 28.48 -12.8 7.6 NA 17.78 NA 7.7 Invesco Sr Loan IB MS India Invest IIF Wstrn Asset Gl Def Opp Fd GDO MCA 16.77 16.76 -0.1 5.0 6.37 NA NA 5.8 International rates 16.20 14.30 -11.7 5.5 BlkRk MuniYld CA Quality Invesco Sr Loan IC New Germany Fund GF National Muni Bond Funds BlkRk MuniYld MI Qlty MIY 16.34 15.19 -7.0 5.4 6.37 NA NA 5.9 Week 52-Week Commercial paper (AA financial) 12.18 10.52 -13.6 0.1 15.89 14.82 -6.7 5.0 Invesco Sr Loan Y Swiss Helvetia Fund SWZ AllianceBrnstn NtlMun AFB BlRk Muyld NY Qlty MYN 15.07 14.32 -5.0 5.0 12.59 NA NA 5.6 Latest ago High Low 90 days 0.73 0.72 0.90 0.22 21.60 18.68 -13.5 16.9 17.26 17.44 +1.0 5.1 Voya Senior Income:A Templeton Dragon TDF Blackrock Invest BKN Eaton Vance CA Mun Bd EVM 13.26 13.76 +3.8 4.8 12.53 NA NA 5.1 14.69 13.02 -11.4 14.5 Voya Senior Income:B Voya Infr Indls & Matls IDE BlackRock Mun 2030 Target BTT 25.35 23.94 -5.6 3.9 Invesco CA Value Mun Incm VCV 14.33 14.07 -1.8 5.3 12.57 NA NA 5.1 Prime rates Euro commercial paper 6.84 6.03 -11.8 4.7 15.51 15.69 +1.2 5.6 Voya Senior Income:C n.q. n.q. -0.02 -0.14 Wells Fargo Gl Div Opp EOD BlackRock Municipal Trust BFK Invesco PA Value Mun Incm VPV 14.88 13.98 -6.0 5.4 12.55 NA NA 5.8 3.50 3.50 3.50 3.25 30 day 16.11 16.46 +2.2 5.7 Voya Senior Income:I U.S. n.q. n.q. -0.01 -0.09 Prem12 Mo BlackRockMuni BLE Invesco Inv Grade NY Muni VTN 15.62 16.38 +4.9 5.1 Voya Senior Income:W 12.60 NA NA 5.8 2.70 2.70 2.70 2.70 Two month BlackRockMuni Tr BYM 16.21 15.66 -3.4 5.2 Canada n.q. n.q. -0.01 -0.08 Fund (SYM) NAV Close /Disc Yld Nuveen California AMT NKX 16.82 17.17 +2.1 5.0 High Yield Bond Funds 1.475 1.475 1.475 1.475 Three month BlkRk MuniAssets Fd MUA 14.73 15.61 +6.0 4.6 16.74 16.73 -0.1 5.4 Japan U.S. Mortgage Bond Funds Nuveen CA Div Fnd NAC Nuveen HI Dec 2019 Tgt 10.09 10.10 +0.1 NS Four month n.q. n.q. 0.00 0.00 BlkRk Munienhanced MEN 12.73 12.85 +0.9 5.6 16.70 16.49 -1.3 4.8 BlackRock Income Trust BKT 6.95 6.57 -5.5 5.2 Nuveen CA Div 2 NVX PionrILSInterval 10.72 NA NA 5.9 Five month n.q. n.q. n.q. n.q. BlkRk MuniHldgs Inv MFL 15.87 16.08 +1.3 5.2 15.49 15.77 +1.8 5.0 Policy Rates Brkfld Mortgage Opp Incm BOI 16.54 15.13 -8.5 10.1 NuveenCA 3 NZH WA Middle Mkt Dbt NA NA NA 11.7 Six month n.q. n.q. n.q. n.q. BlkRk MuniHldgs Qlty II MUE 15.06 14.67 -2.6 5.4 10.88 11.35 +4.3 4.1 Euro zone 0.00 0.00 0.05 0.00 Brookfield TR Fund HTR 24.24 22.78 -6.0 9.95 Nuveen CA Muni Value NCA WA Middle Mkt Inc WMF NA NA NA 12.1 18.28 18.58 +1.6 5.6 15.24 14.43 -5.3 4.6 Switzerland 0.50 0.50 0.50 0.50 Nuveen Mtg Oppy Term Fd JLS 25.17 23.99 -4.7 6.3 BlkRk MuniHldgs MHD Nuveen MD Premium Income NMY Other Domestic Taxable Bond Funds Libor 10.37 10.88 +4.9 5.7 16.35 15.32 -6.3 4.8 0.25 0.25 0.50 0.25 Investment Grade Bond Funds BlkRk MuniVest MVF Nuveen MI Quality Income NUM Capstone Church Capital 12.42 NA NA 1.1 Britain One month 0.52106 0.50765 0.52106 0.18830 16.37 17.48 +6.8 5.4 15.80 14.76 -6.6 3.9 Blackrock Core Bond Tr BHK 15.17 14.28 -5.9 6.0 BlkRk MuniVest II MVT Nuveen NC Premium Income NNC GL Beyond Income 4.86 NA NA NE Australia 1.50 1.50 2.00 1.50 Three month 0.81711 0.81700 0.81825 0.31515 15.90 16.24 +2.1 5.7 16.62 15.24 -8.3 5.1 BlkRk Credit Alloc Incm BTZ 14.81 13.35 -9.9 7.1 BlkRk MuniYield MYD Nuveen NJ Div NXJ Palmer Square Opp Income NA NA NA 6.2 Six month 1.21456 1.20395 1.21456 0.51590 15.70 14.72 -6.2 5.8 BlkRk MuniYld Quality MQY 16.78 16.89 +0.7 5.5 NuvAMTFreeMuniIncm NRK 15.31 14.43 -5.7 4.8 Resource Credit Inc:A 10.31 NA NA 1.7 Overnight repurchase John Hancock Income Secs JHS 14.75 14.46 -2.0 5.5 One year 1.52322 1.51950 1.52570 0.81640 MIN 4.89 4.60 -5.9 9.2 BlkRk MuniYld Qlty II MQT Nuveen NY Div Fnd NAN 15.95 15.54 -2.6 5.0 Resource Credit Inc:C 10.41 NA NA 1.5 U.S. 0.48 0.53 1.03 0.09 MFS Inc Tr 15.47 15.70 +1.5 5.6 WIW NA 11.26 NA 3.6 BlRkMunyldQltyIII MYI Nuveen Ohio Qual Income NUO 17.71 16.98 -4.1 4.8 Resource Credit Inc:D 10.29 NA NA 1.6 Euro Libor WstAstClymr InfLnkd Fd 13.68 14.61 +6.8 5.7 WstAssetClymr InflLnk Sec WIA NA 11.66 NA 3.3 Deutsche Mun Income Tr KTF Nuveen Pa Investment Qual NQP 16.42 15.19 -7.5 5.2 Resource Credit Inc:I 10.34 NA NA 1.7 -0.371 -0.372 -0.105 -0.372 14.76 14.22 -3.7 5.2 U.S. government rates One month Loan Participation Funds Dreyfus Mun Bd Infr Fd DMB Nuveen VA Premium Income NPV 15.13 14.97 -1.1 4.5 Resource Credit Inc:T 10.27 NA NA 1.5 -0.320 -0.319 -0.028 -0.322 9.96 10.01 +0.5 5.5 15.11 17.09 +13.1 5.3 10.32 NA NA 1.7 Discount Three month Apollo Sr Fltg Rate Fd AFT 17.91 16.30 -9.0 6.8 Dreyfus Municipal Income DMF PIMCO California Muni PCQ Resource Credit Inc:U -0.202 -0.198 0.052 -0.202 14.73 13.63 -7.5 5.5 Dreyfus Strat Muni Bond DSM 8.96 8.97 +0.1 5.4 PIMCO California Mun II PCK 9.35 10.78 +15.3 5.8 Resource Credit Inc:W 10.29 NA NA 1.6 1.00 1.00 1.00 0.75 Six month BlackRock FR Incm Strat FRA One year -0.073 -0.073 0.157 -0.073 Blkrk FltRt InTr BGT 14.28 13.31 -6.8 5.4 NA 14.89 NA 8.4 Federal funds BlackstoneGSO Strat Cred BGB Euro interbank offered rate (Euribor) Blackstone GSO Sr Float BSL NA 16.54 NA 6.2 0.4300 0.4300 0.4500 0.0600 Effective rate One month -0.369 -0.368 -0.092 -0.371 Eaton Vance FR Incm Tr EFT 14.96 14.15 -5.4 6.5 ADVERTISEMENT 0.5625 0.5625 0.7500 0.3100 High Three month -0.298 -0.299 -0.031 -0.299 EatonVnc SrFltRate EFR 14.56 13.62 -6.5 7.0 0.3000 0.3000 0.4000 0.0200 6.79 6.32 -6.9 6.5 Low Six month -0.189 -0.188 0.042 -0.191 Eaton Vance Sr EVF Bid 0.4000 0.4000 0.5500 0.0400 1st Tr Sr Fltg Rt Fd II FCT 14.12 13.49 -4.5 6.5 One year -0.047 -0.049 0.161 -0.063 12.69 11.53 -9.1 7.8 Offer 0.4200 0.5000 0.5600 0.1000 Invesco Credit Opps Fund VTA Legal Notices Value 52-Week Invesco Senior Income Tr VVR 4.70 4.34 -7.7 7.0 To advertise: 800-366-3975 or WSJ.com/classifieds Treasury bill auction Latest Traded High Low Nuveen Credit Strt Inc Fd JQC 9.27 8.49 -8.4 7.2 11.39 10.80 -5.2 6.7 0.275 0.270 0.295 0.000 DTCC GCF Repo Index NuvFloatRteInco Fd JFR 4 weeks Nuv Float Rte Opp Fd JRO 11.34 10.78 -4.9 7.1 0.300 0.305 0.350 0.000 0.487 64.478 0.875 0.075 13 weeks Treasury Nuveen Senior Income Fund NSL 6.77 6.25 -7.7 6.7 CLASS ACTIONS 26 weeks 0.445 0.440 0.585 0.065 MBS 0.505 81.150 0.964 0.087 Pioneer Floating Rate Tr PHD 12.42 11.46 -7.7 6.2 5.69 5.25 -7.7 6.1 Open Implied Voya Prime Rate Trust PPR          Secondary market Settle Change Interest Rate High Yield Bond Funds       13.52 12.67 -6.3 8.8 Fannie Mae AllianceBernstein Glbl AWF         !  " , (# "* -././//0/1-2. . .  DTCC GCF Repo Index Futures Babson Gl Sh Dur Hi Yd BGH 20.06 18.56 -7.5 10.0 30-year mortgage yields 99.505 unch. 2390 0.495 11.77 10.80 -8.2 9.2 #$ % "% &$#'( ) ' ! & &# ,    Treasury Aug BlackRock Corp Hi Yd Fd HYT ,  &%% 34 ""' 5 # 3"  6* #7( 30 days 2.856 2.848 3.610 2.806 Treasury Sep 99.480 unch. 1968 0.520 BlkRk Debt Strat Fd DSU 4.08 3.69 -9.6 6.8 , (*  4 .80 60 days 2.888 2.880 3.646 2.832 99.455 -0.005 862 0.545 BlackRockDurInco Tr BLW 16.82 15.69 -6.7 8.3 , Treasury Oct    4 /09/9 DoubleLine Incm Solutions DSL NA 19.21 NA 9.7 +  * #& * , Notes on data: Dreyfus Hi Yld Fd DHF 3.48 3.46 -0.6 10.0 #%# &(* , 17.69 15.74 -11.0 7.3 U.S. prime rate is effective December 17, 2015. Discount rate is effective December 17, 2015. U.S. Fst Tr Hi Inc Lg/Shrt Fd FSD , prime rate is the base rate on corporate loans posted by at least 70% of the 10 largest U.S. banks; Other Guggenheim Strat Opps Fd GOF 18.48 18.90 +2.3 11.7                prime rates aren’t directly comparable; lending practices vary widely by location; DTCC GCF Repo Index Ivy High Income Opps Fund IVH 15.65 14.44 -7.7 11.1                                   is Depository Trust & Clearing Corp.'s weighted average for overnight trades in applicable CUSIPs. Value Neuberger Berman HYS NHS 13.15 11.70 -11.0 8.3                                traded is in billions of U.S. dollars. Futures on the DTCC GCF Repo Index are traded on NYSE Liffe US. NexPoint Credit Strat Fd NHF 24.93 22.61 -9.3 13.3                 !"#$            !% !%&' 17.32 15.66 -9.6 10.3        (                      Sources: Federal Reserve; Bureau of Labor Statistics; DTCC; SIX Financial Information; Nuveen Gl Hi Incm Fd JGH         General Electric Capital Corp.; Tullett Prebon Information, Ltd. Nuveen High Incm Dec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world’s most informed and most +  3    F    66     3   6   *      Barron’s  4 :(& 0 /8      influential investors—including members of       Roundtable. Don’t miss this opportunity to hear from BANKRUPTCIES these investing luminaries at one place, at one time.                                     !    "# $ %&'## &           &#   #     ( ) * SATURDAY !    "# $ %&'## &      LEGAL  OCTOBER 15                                   !" NEW YORK NOTICES        + ,# & -   . / $ / 0  # # 0    1/ 2   &                        13 & 2 4  (5  !##6 # #!! $% $&'()*)+, (-.&+ )%" /+ $.%0&   ! SCOTT BLACK JEROME DODSON   1   &#  .  2    & 0 7#6 #'  & !$ &# ADVERTISE TODAY   &#      68 '   /#   & 7 & #   #  9) 0  . / $ & Delphi Management Parnassus Investments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poch Investment Partners Rivulet Capital, LLC Horizon Investments #!! $% $&'()*)+, (-.&+ )%" /+ $.%0&   ! #     &#   &#      68 '   /#  & /+ /& 06/& #!! $% $&'()*)+, (-.&+ )%" /+ 1(+2(&3 4 !5 #     &#   &#     68 '   /#    7          #' A  #6    ? E#< . / $ -/ # Placeanadwiththe DD > F -  # A3 .B C)C  G  G  CC)C  7     7   7          #' A  #6    ? E#< . / $ -/ # self-service tool at: DD )C) +# & %8 /   & >   G  G  ) A 0 0 #' # ! & ' & 7 & $    #8 & !$ E#< . / $ -/ # DD   1#' %6  2   &&   # &  # /+ /& 06/& #!! $% $&'()*)+, (-.&+ )%" wsj.com/classifieds /+ $.%0&   ! #     &#   &#      68 '   /#  & /+ /& 06/& #!! $% $&'()*)+, (-.&+ )%" /+ 1(+2(&3 4 !5 #     &#   &#     68 '   /#   A 0 0 #' '$  ! & #8 & !$ 0#'#   $    # '# '## G/ 7 &  0 0 #' 0 ' '/ 0 ' /!  #$  307# > '  *  A 0 0 #' 0 ' '$ ! ! # &   ??&' #< '?   &  // 68?!0 ' %$ & 0  #' / /  -  # C!  '/  /!'#  #' !$      &#  .   8 '    .    #!  #  #   -  # C!  #' 3 &  + !  8(' +/. B & &   8#/$  !# & ! &  0  7#6 0 #' ANDREW WELLINGTON BYRON WIEN FELIX ZULAUF 0 $    &#   #/&#6  &#   0 !          &#   #                    Lyrical Asset Management Blackstone Advisory Partners Zulauf Asset Management        9       :   :      ;     "                  9           7       "                    " 7   7             <   =   >             #  0  3 &   0 0 #' 0 ' &  !  @ - &/  0 %  & D#!## #  For more details on the speakers and agenda, & - &/  0 EB /  $    & , B# & D   '$ ! ! # & 0 '  #&  &   !# '# # & !$  #' %6    ??&' #< '?    !$  #     G  G  ) (*( 999C .G 3F EF 3> +HE H3 3F%.DE EI F3-- , +E -+%+E- .% F,A+G ", E  & J#'#6   %/6/ ( 9 ( DE%FG 3++DE. -+EE K H%=D+3 DDA "'  D . ' $ &'# &     D# = - # : &'# &     3 D#! $ A:  G   G  (  &  =3FF- H3D- %F-H+ K +, EDD DDA   %!!   )(  E #  - :    *  +'   © 2016 Dow Jones & Company, Inc. =#   C(*  9   =  -  A3 .B *) J#'#6     SPONSORED BY Interactive Brokers               All Rights Reserved. ©2016 Dow Jones & Company. All Rights Reserved. 3E979

C6 | Monday, August 22, 2016 THE WALL STREET JOURNAL. HEARD ON THE STREET

Email: [email protected] FINANCIAL ANALYSIS & COMMENTARY WSJ.com/Heard Two Strategies, One Busy Trade OVERHEARD Chesapeake: Two of this year’s best low-volatility and dividend A tögrög for your A Triumph stock strategies have a major Shake Shock ETFs and index funds, and thoughts? downside: They are pulling Forward price/earnings ratio for the lowest- and highest- the same names—not just Better make it two. Mon- Of Optimists investors into the same beta S&P 500 quintiles relative to the overall index Johnson & Johnson and golia’s currency, which bears crowded and increasingly ex- AT&T, but companies such as the image of the fearsome Six months ago, Chesa- 2.0 times pensive trade. Procter & Gamble, Pfizer Genghis Khan, is anything but peake Energy found itself Johnson & Johnson is Low beta and Coca-Cola—show up a world conqueror these days. with a tiny market value de- hardly the world’s most 1.5 High beta over and over again. They Its value is under attack as spite its vast oil and gas thrilling company, but the also show up in the hybrid the resource-rich country once acreage. The market under- health-care giant’s stock has low-volatility, high-dividend dubbed “minegolia” suffers a estimated that the company’s been an exciting place to be 1.0 category. But the success of balance-of-payments crisis re- efforts to buy itself time this year, rising 16.7% versus low-volatility and dividend sulting from the commodity could create a virtuous cycle. the S&P 500’s 6.8%. AT&T strategies has pushed prices bust. Since a story made the shares, up 19.2%, have been 0.5 to the point that they may be That puts its central bank rounds in February that another pleasant one. vulnerable. in a tough position. On Thurs- Chesapeake had hired bank- One thing those compa- 0 Forward price/earnings ra- day, it raised rates by a whop- ruptcy counsel, investors nies have going for them is tios for the one-fifth of ping 4.5 percentage points, to who realized the company’s that their share prices don’t 1987’90 2000 ’10 stocks in the S&P 500 with 15%, to defend the tögrög’s chances of survival were sig- bounce around nearly as Source: Richard Bernstein Advisors THE WALL STREET JOURNAL. the lowest betas are 1.12 value. It didn’t help much. nificantly higher than zero much as most other compa- times the average P/E on the Janet Yellen and her col- have done well. Chesapeake’s nies’ shares do. They count mum Volatility ETF. Both in its top 10 holdings. overall index, according to an leagues on the Federal Open shares are valued now at as some of the least volatile count Johnson & Johnson Indeed, there is substan- analysis by Richard Bernstein Market Committee have a far four times as much as in stocks in the S&P 500 over and AT&T in their top 10 tial overlap between low-vol- Advisors, while the P/E on easier job when they meet those dark days. The price of the past three years, and holdings. atility stocks and stocks that the highest-beta stocks is next month in all but one re- its series D preferred stock, their betas—a measure of Dividend-yielding strate- are good dividend payers. 0.77. That is close to as ex- spect. on which Chesapeake has how much a stock tends to gies also have been in vogue Companies with stable share treme as the valuation As central banks in the de- suspended dividends to pre- swing with the market—also as low yields on Treasurys prices often have the mature, spread between the two has veloping world have moved to serve cash, has risen from are low. and other fixed-income prod- steady operations that are a been in 30 years. The Van- ease, and trillions of dollars in barely 5% of par value to Low-volatility strategies ucts have prompted investors hallmark of regular distribu- guard Dividend Apprecia- bonds sport negative yields, nearly 40% recently. have been popular this year. to look for bondlike alterna- tors of cash. A dividend itself tion ETF’s valuation relative the fear is that a second rate That still implies signifi- Money has been pouring into tives. That has raised the pop- can damp volatility, because to the market is near a high. increase will exacerbate the cant doubt about creditwor- exchange-traded funds such ularity of products such as the rising dividend yield that In their zeal for safe dollar’s recent rise as capital thiness, but recent news has as the PowerShares S&P the Vanguard High Dividend comes with a falling price stocks, investors may have flows to the U.S. Ah, first- added to the optimists’ case. 500 Low Volatility ETF and Yield ETF, which includes can bring in buyers. made them anything but. world problems. Those include two transac- the iShares MSCI USA Mini- Johnson & Johnson and AT&T Look at the holdings of —Justin Lahart tions to give up control of assets that came with expen- sive transportation and gath- ering contracts, saving hun- dreds of millions of dollars in Picking Winners Among Cancer Treatments Won’t Be Easy cash. Its most recent move, Despite a recent hiccup, tirely smooth, however. Bris- to strong data earlier this tol-Myers shareholders, it announced last week, was new treatments for cancer The Race Is On tol-Myers Squibb announced summer. Merck’s market would be premature to count the unexpected “upsizing” of are among the brightest Company sales a surprise failure of its im- value has increased $16 bil- the company out of the race a term-loan facility to $1.5 spots on the drug-develop- munotherapy drug Opdivo in lion since the lung-cancer just yet. For instance, stud- billion. Opdivo Keytruda ment landscape. Picking the a clinical trial among pa- trial fell short. ies of Opdivo in combination Meanwhile, natural-gas fu- $12 billion winners within that field Estimates tients with previously un- The reshuffling makes with another Bristol-Myers tures have been far stronger hasn’t gotten any easier for 8 treated lung cancer—a large sense. Yet there are reasons drug, Yervoy, are ongoing. than expected due in part to investors, however. market with a significant un- to believe the landscape Analysts’ consensus calls a warm summer that boosted Drugs that attempt to le- 4 met medical need. That news likely will shift again. The for nearly $20 billion in an- electricity demand. verage the body’s immune took Wall Street by surprise; drugs still are too novel for nual sales for Opdivo and The upshot is that Chesa- system to fight tumors have 0 Bristol-Myers has shed comprehensive long-term Merck’s Keytruda alone by peake almost certainly has been approved for some nearly $28 billion in market survival data in cancers with 2021, but those forecasts are enough cash to handle debt forms of cancer. Clinical tri- ’15’16 ’17 ’18 ’19 ’20 ’21 value in two weeks. large patient populations. bound to change as more maturities through 2018. As als for many other possible Source: FactSet In turn, its competitors Handicapping the market- data see the light of day. De- the past six months have treatment areas are ongo- have gained where Bristol- place is also more complex spite the recent stumble, im- shown, a lot can go right in a ing. For a small group of pa- And since these drugs carry Myers has lost. Merck pur- beyond considering just the munotherapy looks set to be far shorter amount of time. tients, they have generated an annual sticker price in ex- sued a less-ambitious design number of drugs in develop- the next big driver of drug- Given the still modest odds significant survival benefits. cess of $100,000, their eco- of its clinical trial and tar- ment, thanks to the role of maker profits. Investors ex- the market is assigning to Given the dire nature of nomic potential has rightly geted a smaller subset of pa- combination therapy in can- cited about that possibility, Chesapeake, investors who illnesses these drugs treat, generated significant excite- tients and now appears set cer treatment. While the Op- however, would do well to got it right so far this year clinical results have gener- ment among investors. to reach the first-line lung- divo failure as a stand-alone spread their bets around. may want to let their bets ally been quite impressive. The road hasn’t been en- cancer market first, thanks therapy certainly stung Bris- —Charley Grant ride. —Spencer Jakab MONEY & INVESTING New Firm Shedding REITs to Cut Yields at Some Funds BY DAISY MAXEY as 0.20 percentage point “by Makes Its current estimates,” he said. Yield-hungry investors The fund currently yields could be in for a surprise next 1.95%, according to ETF.com. Initial month when certain financial- Guggenheim Investments is sector funds cut much of their taking a different approach to stakes in dividend-heavy real- shedding REITs. Real-estate M&A Deal estate investment trusts, with stocks will be removed from BY JENNY STRASBURG some experts pegging the pos- the $145.5 million Guggenheim sible cut in yield at as much as S&P 500 Equal Weight Finan- LONDON—An investment 0.20 percentage point. cials ETF, and the fund’s share- firm formed by former execu- The estimated dividend holders will receive shares of tives of Deutsche Bank AG and yield for the financial sector the $2.8 million Guggenheim Goldman Sachs Group Inc. has based on Aug. 1 data is 2.28%, S&P 500 Equal Weight Real agreed to buy CIFC LLC, a pub- but that is expected to fall to Estate ETF as well as a small licly traded credit-fund man- 2.08% after real-estate stocks amount of cash to capture frac- ager based in New York, for move to their own sector, ac- tional shares. The approach ap- about $330 million, according cording to S&P Dow Jones In- pears to be similar to that of to people familiar with the dices. The estimated dividend the $15.6 billion Financial Se- matter. yield for the real-estate stocks lect Sector SPDR ETF, which is CIFC, which had a market that will no longer be part of sponsored by State Street value of about $160 million, the financial sector in the S&P Global Advisors. specializes in collateralized 500 is 3.1%, it says. The real-estate shares will

loan portfolios and is majority- The expected drop in yield MIKE MERGEN/be BLOOMBERG NEWS exchanged for securities in owned by Columbus Nova, the might seem minuscule, but in a Vanguard says the impact on yield depends highly on the market environment and other factors. “in-kind” transactions, which U.S. investment arm of the Ren- world of low interest rates, are unlikely to generate capital ova Group, a Russian conglom- even a small drop has a big im- fected real-estate stocks risk a sure they know what funds costs or capital gains or losses gains, said William Belden, erate. CIFC manages about $14 pact, experts say. tracking error—a difference they own after changes are because they depend on the managing director at Guggen- billion in debt investments. “A lot of people will sit between the portfolio’s returns made, if their exposure to real- market environment and other heim Investments. Shares of The acquisition is the first down and crunch the numbers, and those of its index—which estate stocks and their yield factors as the transition oc- the REIT fund will be paid out deal by the newly formed and they may change their is important to some investors, has changed and what they curs, he said. via a special distribution con- F.A.B. Partners, which was set minds” about some holdings as said Todd Rosenbluth, director will owe in taxes if they hold a The shift will leave the sisting of the fund’s shares. up in recent months by former a result of the change, said Da- of exchange-traded-fund and fund in a taxable account. Not fund’s investors with no expo- The yield on the firm’s fi- Deutsche Bank executives Mi- vid Blitzer, managing director mutual-fund research at S&P all funds will make the shift on sure to real-estate stocks other nancials ETF, currently 2.19% chele Faissola and Nizar Al-Bas- and chairman of the index Global Market Intelligence. Sept. 16; some will wait until than mortgage REITs. according to ETF.com, will sam, along with Dalinc Ari- committee at S&P Dow Jones “When REITs are removed, their next scheduled rebalance. Vanguard can’t estimate the drop when the REITs are re- burnu, who most recently was Indices. the dividend yield should go So far, fund companies are potential impact to yield, moved, a spokesman for at Goldman Sachs. The change is coming be- down a little bit,” said Victor saying there will be minimal to which is “highly dependent on Guggenheim said. But the F.A.B. is backed in the trans- cause two major index provid- Lin, a trading strategist at no tax impact on investors, the market environment and fund’s shareholders will bene- action by Supreme Universal ers—S&P Dow Jones Indices, other factors,” it said. fit from receiving shares of the Holdings Ltd., an investment part of McGraw Hill Financial, Another large fund that will real-estate fund, he added. The arm of the Qatari royal family, and MSCI Inc.—plan to break Guggenheim Investments is taking a be affected is the $15 billion real-estate fund now yields people familiar with the matter out publicly traded equity different approach to shedding REITs. iShares Edge MSCI Minimum 1.85%, according to ETF.com. said. real-estate investment trusts Volatility USA ETF. As of Aug. Operating fees and expenses F.A.B. aims to source and and real estate management 15, the ETF had 10.4% of its as- for the Guggenheim real- es- manage investments for clients and development companies Credit Suisse. Whether it is a though they are making no sets invested in the real-estate tate ETF will be waived from including high-net-worth fami- from the financials sector and big enough change to make a guarantees. sector, according to Morning- July 11 through the date of the lies and sovereign-wealth put them into a new equity difference to investors in fi- Vanguard Group plans to star Inc. rebalance, according to the funds, according to the com- real-estate investment trusts nancial funds will depend on transition 26.4% of the securi- The percentage of the fund’s company’s filing with regula- pany’s website. It has about a sector under their classifica- their sensitivity and whether ties in the $3.8 billion Van- assets in real-estate stocks will tors. The fund was launched in dozen clients, including the Qa- tion standard. they are using the ETF for guard Financials Index Fund likely be reduced slightly, and August of last year in anticipa- tari royal family, one of the The change will occur after yield or for exposure to the fi- and 26.4% of the securities in the percentage of its assets in tion of the new real-estate sec- people said. the close on Aug. 31 but will be nancial sector, he added. the $3.7 billion Vanguard Fi- financial stocks will increase tor classification. Mr. Faissola left Deutsche implemented in the indexes on Fund companies are taking nancials ETF out of the funds slightly, according to a spokes- The plan leaves the decision Bank last year after overseeing Sept. 16. Mortgage REITs will different tacks to comply with through a quarterly rebalance. man for BlackRock Inc., the up to the investor as to its global-asset and wealth- remain in the financials sector, the shift, with some simply The turnover created by the fund’s sponsor. The ETF will whether to hold on to the real- management business. Mr. Al- which also includes banks and planning to remove real-estate change should be minimal, said remove the real-estate stocks estate investments, said Mr. Bassam until earlier this year insurance companies. stocks from their financial spokesman David Hoffman. from its portfolio through Belden. oversaw the bank’s financing- After the changes, funds funds, and others planning to “However, the fund will en- what are known as “in-kind” “We’re not forcing that solutions business for a large that are indexed to either the shift investors’ money already gage in trading to complete transactions so there will “lit- change on shareholders of the part of Europe, the Middle East S&P or MSCI financial-sector in real-estate stocks into real- the transition,” he said. tle to no” tax impact, he said. financials fund,” he said, not- and Africa. benchmarks will have to re- estate funds they don’t cur- While the change isn’t ex- The impact to the fund’s ing the significant size of the Mr. Ariburnu left Goldman move the bulk of their hold- rently own. pected to result in capital- yield is expected to be “ex- shift. Real-estate stocks ac- Sachs this year as global co- ings in the recategorized Companies will notify inves- gains distributions, Vanguard tremely small,” he added. counted for about 27.1% of the head of sales for fixed income, REITs. Those funds that con- tors of any changes. Investors can’t provide specific esti- While its yield may decline, it fund’s assets as of Aug. 15, ac- currencies and commodities. tinue to hold some of the af- should watch carefully to be mates of turnover, transaction won’t likely decline by as much cording to Morningstar.