U.K. Vote to Ripple Across Globe

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THE MIDDLE SEAT | D1 OPINION | A11 ELAINE THOMPSON/ASSOCIATED PRESS ****** THURSDAY, JUNE 23, 2016 ~ VOL. CCLXVII NO. 146 WSJ.com HHHH $3.00

DJIA 17780.83 g 48.90 0.3% NASDAQ 4833.32 g 0.2% STOXX 600 341.32 À 0.4% 10-YR. TREAS. À 4/32 , yield 1.687% OIL $49.13 g $0.72 GOLD $1,268.00 g $2.50 EURO $1.1297 YEN 104.41 What’s U.K. Vote to Ripple Across Globe

BY RIVA GOLD camps—two points here, three the strongest European econo- could just be the dose of confi- the price of gold, to the Swiss News points there, a point here. The mies, would be unburdened by dence needed to lift U.S. franc, to Japanese monetary The ramifications of the last volley of polls Wednesday uncertainty about its long- stocks. policy. U.K.’s referendum Thursday on gave a mixed verdict—some term future. Prime Minister The Leave camp believes an “It may be a decision that is Business&Finance European Union membership for Leave but one with an David Cameron would carry on exit would benefit Britain in being made by folks locally to will spill through Britain’s pol- eight-point edge for Remain. for a term that lasts four more the long term. But investors, determine their future…but it itics, Europe’s brittle economy Betting markets, bookies and years. Financial markets would economists and analysts say in Please see VOTE page A6 arkets are bracing and the world’s restive finan- traders still lean toward Re- return to focusing on the pace the short term it would take Mfor the U.K. referen- cial markets. main. of interest-rate rises in the the world’s stocks, bonds and Greg Ip: Real impact of exit dum on EU membership, A frenzy of recent polls has A Remain vote would, in U.S., growth in China and the currencies—especially the would be gradual, global..... A2 with a vote to leave expected ping-ponged a tiny lead be- most respects, be a return to price of oil. With investors British pound—on a wild ride. U.S. fears lost clout under to send stocks, bonds and tween the Remain and Leave the status quo: Britain, one of now holding lots of cash, it They are braced for changes to ‘Brexit’ vote...... A6 currencies on a wild ride. A1 U.S. stocks snapped a two-day winning streak as oil prices fell. The Dow Pandemonium in the House Over Gun Legislation eased 48.90 to 17780.83. C4 Judge The share of Americans with subprime credit scores Torpedoes has fallen to the lowest level in over a decade, a trend that could boost lending. A1 Federal Bank of America is in talks with the SEC about paying up to $450 million to settle Limits on allegations it violated rules to safeguard client accounts. C1 Tesla shares fell more Fracking than 10% as its plan to acquire SolarCity got a cold BY AMY HARDER reception from investors. B1 Twilio raised more than it A federal judge in Wyoming expected in its IPO, an offer- blocked an Interior Depart- ing that comes amid a tough ment rule setting stricter patch for some tech firms. C1 standards for hydraulic fracturing on public lands, the lat- Yellen sparred with House est blow to an administration lawmakers who grilled her environmental agenda that has on issues including Fed inter- drawn wide opposition from est payments to banks. A2 Republicans and industry offi- Existing-home sales rose cials. to their highest level in over U.S. District Judge Scott nine years in May and me- Skavdahl issued a ruling late dian prices set a record. A2 Tuesday invalidating the regulation, saying the Interior De- VW shareholders assailed partment hadn’t received the management in the wake of

HOUSE TELEVISION/ASSOCIATED PRESS necessary authority from Con- the emissions scandal, with SHOWDOWN: Speaker Paul Ryan, shown in a video image, brought the House into session late Wednesday after a sit-in by Democrats. A3 gress. The same judge last some calling for the board year signed a preliminary in- chairman to step down. B3 junction blocking the rule un- Global regulators called til he made a final decision. for new rules to bolster the Mr. Skavdahl, whom Presi- safety of mutual funds. C2 dent Barack Obama nominated CHINA’S ROLE IN U.S. OPIOID CRISIS in 2011, said the issue before World-Wide his court wasn’t whether fracking “is good or bad for Global network delivers chemicals used to make fentanyl, up to 50 times as powerful as heroin the environment or the citi- A federal judge blocked zens of the United States,” but an Interior Department rather whether Congress had rule setting stricter stan- BY JEANNE WHALEN AND BRIAN SPEGELE by trading not only in finished fentanyl but re- given the Interior Department dards for hydraulic frac- Deadly Drug lated products subject to little or no regulation the authority to regulate the turing on public lands. A1 Fentanyl seizures reported by Last spring, Chinese customs agents seized in China or internationally. These include some practice. 70 kilograms of the narcotics fentanyl and copies of fentanyl known as analogs, as well as The department’s rule “is in Washington has voiced forensic labs in the U.S. acetyl fentanyl hidden in a cargo container the chemical ingredients and pill presses used excess of its statutory author- concerns that a “Brexit” 13,001 12,000 seizures bound for Mexico. to produce the drug, according to the docu- ity and contrary to law,” Mr. vote would buffet the U.S. The synthetic opium-like drugs were so po- ments and interviews. Skavdahl wrote. economy and cause diplo- 10,000 tent that six of the agents became ill after han- The China Food and Drug Administration de- The ruling highlights the matic and strategic rifts. A6 8,000 dling them. One fell into a coma. clined to comment on the sale and production limits of presidential executive Cameron pledged to The cargo had traveled through five freight of fentanyl and referred questions to the Minis- power in an era when Con- pursue greater EU over- 6,000 forwarders before reaching customs, obscuring try of Public Security, which didn’t respond. gress is unwilling or unable to hauls if Britons back his its exact origins, according to an internal U.S. Fentanyl and its analogs are killing Ameri- agree on legislation ranging call to stay in the bloc. A6 4,000 Drug Enforcement Administration intelligence cans at an alarming rate, marking a deadly new from environmental policy to House Democrats wrested 2,000 briefing reviewed by The Wall Street Journal. chapter in the nation’s struggle with opioid ad- immigration. control of the chamber to de- 0 One thing is clear: The shipment and a host diction. Fentanyl is up to 50 times as potent as An Interior Department mand votes on new gun curbs, of others, detailed in the DEA briefing, court heroin but easier and cheaper to produce, spokeswoman declined to 2009 ’11 ’13 ’15* leading to a raucous confron- documents and interviews with government of- made from chemicals instead of fields of pop- comment on the substance of tation with Republicans. A3 *2015 subject to further updates as labs ficials in multiple countries, are part of a vast pies. Legal versions of fentanyl have been sold the ruling, but she said the continue to process and report evidence. drug-distribution network beginning in China as painkillers or anesthetics since the 1960s. agency’s regulation reflects Trump unleashed a se- Source: Drug Enforcement Administration data obtained via FOIA that feeds lethal fentanyl to the Americas. Today, illicit batches are driving a surge in fracking standards already ries of blistering attacks THE WALL STREET JOURNAL. The network often avoids efforts to stop it Please see DRUGS page A8 Please see FRACK page A2 on Clinton, drawing rebut- tals from the Democrat. A4 Over 50 executives,in- To Vote in ‘Brexit’ Referendum, cluding several longtime Millions Rise Republicans, will endorse It Helps to Be From Tuvalu Clinton for president. A4 Oracle #1 White Americans no lon- iii Out of Ranks ger account for the majority in hundreds of counties, ac- Baffling rules embrace certain foreigners Of Subprime cording to census figures. A3 while nixing citizens; Gimli’s torment Cloud ERP Social Security and Borrowers Medicare will begin to BY MAX COLCHESTER lived on the Isle of Man, a BY ANNAMARIA ANDRIOTIS spend more than they earn AND JENNY GROSS small rainy island in the Irish by the end of this decade, Sea, equidistant from the Eng- The percentage of Americans new projections show. A3 LONDON—If you’re a Ugan- lish and Irish coasts, which is with subprime credit scores has Rubio said he would run dan living in Gibraltar, you can known mostly for a type of cat fallen to the lowest level in for re-election to the Sen- vote in Thursday’s referendum with a stumpy tail and a mo- more than a decade, a develop- ate seat he had previously that will decide the fate of torcycle race. Because techni- ment that could give bank lend- planned to give up. A4 Britain’s European cally the Isle of Man ing and the overall economy a Union membership. isn’t part of the boost. Colombia’s government The same goes for U.K., and because The share of U.S. adults with and guerrilla leaders said they U.K. residents hail- Mr. Rhys-Davies has credit scores that are consid- agreed on a cease-fire. A7 ing from Tuvalu, a thus been an expa- ered “subprime” fell to 20.7% in 2,558 228 clusteroftinyPa- triate for too long, April, the sixth consecutive CONTENTS In the Markets...... C4 Oracle Cloud Workday Cloud Britain’s EU Ref.... A6 Opinion...... A9-11 cific islands some he can’t take part. year-over-year decline and the Business News. B2-3,6-8 Sports...... D6 9,000 miles from “It’s simply not lowest level since at least 2005, ERP Customers ERP Customers Crossword...... B7 Style & Travel.... D2-3 the British Isles. fair, and I don’t like when Fair Isaac Corp., or FICO, Election 2016...... A4 U.S. News...... A2-3 Irish citizens living unfairness,” the 72- started tracking the data. The “OraclehastheiracttogetherbetterthanSAP” Global Finance...... C3 Weather...... B7 Heard on Street.... C8 World News...... A7,12 in Scotland—they year-old bearded ranks of subprime borrowers Aneel Bhusri, Workday CEO can vote, too. actor said, furrow- swelled during the financial cri- John Rhys-Da- John Rhys-Davies ing his bushy eye- sis, peaking at 25.5% in 2010, as > vies, an actor famed as Gimli brows over tea one mortgage payments, credit-card for his portrayal of recent afternoon. bills and other debts went un- warrior dwarf Gimli in “The “It’s an insult to the people.” paid. Midsize and large scale Enterprise Fusion ERP Cloud customers. Lord of the Rings” movies, Peeved, he has filed a peti- The improving trend could was born in England and tion to Parliament and his bring relief to big banks, which cloud.oracle.com/erp or call 1.800.ORACLE.1 s Copyright 2016 Dow Jones & Company. All Rights Reserved raised by Welsh parents. For supporters have written to tightened credit standards in Copyright © 2016, Oracle and/or its affiliates. All rights reserved. nearly three decades, he has Please see RULES page A6 Please see CREDIT page A8 For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com A2 | Thursday, June 23, 2016 **** THE WALL STREET JOURNAL. U.S. NEWS Impact of ‘Brexit’ Would Likely Be Gradual and Global

nxious prognosticators accept the economic rationale points lower growth over 15 worry that a British for integration. It increases EU, the Story So Far years may not be enough for vote to leave the Euro- the size of the market, ex- the average Briton to notice. A British exit from the European Union would interrupt nearly 60 years of expansion. pean Union on Thursday will poses local companies to Yet those costs are real. For Britain, it could endanger the economic gains it has made since joining. tank the country’s financial more competition and accel- More important, pivoting markets and precipitate a re- erates the dissemination of How theEUhas grown over time, based on 2015 gross Ratio of U.K. to France and Germany from a path of more open to cession. Those predictions are new ideas via foreign invest- domestic product of member nations per capita GDP less open borders will chip largely guesses, and probably ment and immigration. In 2015: away at the margin to Brit- overwrought. 2004, academic economists €16 trillion 2.0 ain’s long-term growth path, €14.63 trillion The greater consequences Scott Bradford and Robert which it can ill afford, given are more subtle, gradual and Lawrence estimated the 14 that productivity growth has global. world would be 7% poorer if 1.8 recently averaged around Brexit would it reverted to the trade rules Britain joins EU zero. Nor will the conse- 12 be the starkest of the 1930s. 1.6 quences stop at Britain’s repudiation yet The British economy was shores. If there is no serious of the postwar declining relative to France’s 10 short-term fallout from Br- consensus fa- and Germany’s until it joined 1.4 To Germany exit, it might energize anti- voring ever- the EU in 1973. Margaret EU politicians in France and To France CAPITAL deeper global Thatcher became prime min- 8 the Netherlands who, like Br- ACCOUNT integration. ister in 1979 and began loos- 1.2 exit advocates, have benefited GREG IP That consensus ening the state’s grip on the 6 principally from anxiety is already fray- economy. Since then, Britain’s about immigration rather ing in the face per capita income has grown 1.0 than economic concerns. 4 of growing protectionism and as fast, or faster, than anti-immigrant sentiment France’s and Germany’s. t also would come as pro- world-wide. A further unrav- 2 0.8 tectionism creeps back eling would undermine global he soft underbelly of I world-wide. Global Trade growth prospects already this economic success 0 0.6 Alert, a Geneva-based watch- clouded by aging populations T is its fragile political le- dog group, counts 714 gov- and miserable productivity. gitimacy. Brexit advocates ’57 ’60 ’70 ’80 ’90 ’00 ’10 ’60s1950s’70s ’80s ’90s ’00s ’10s ernment edicts to foreign The consensus for greater have long chafed at the EU’s companies to produce or EU membership integration has been remark- interference in British affairs. source locally in exchange for ably durable to date. Since Yet international treaties like 1957 1973 1981 1986 1995 2004 2007 2013 market access or government the EU’s founding in 1957, 28 the EU and the WTO are by Belgium, France, Denmark, Greece Portugal, Austria, Cyprus, Czech Republic, Bulgaria, Croatia contracts since 2008. countries have joined and their nature undemocratic, Germany, Italy, Ireland, U.K. Spain Finland, Estonia, Hungary, Latvia, Romania Spreading production none have left (other than insofar as they compel signa- Luxembourg, Sweden Lithuania, Malta, Poland, among more plants may pro- Netherlands Slovakia, Slovenia Greenland, a Danish territory, tories to bind their own tect a company from protec- and Algeria, which ceased to hands for the common good. Notes: Algeria ceased to be part upon independence from France in 1962. Greenland, a Danish territory, withdrew in 1985. €1 trillion=$1.13 trillion tionist impulses, but it also be part of the EU upon inde- British businesses grouse Sources: European Union (GDP, timeline of membership); Angus Maddison Project (per capita GDP) THE WALL STREET JOURNAL. reduces productivity and pendence from France). In- about EU meddling in their raises costs for its customers. deed, it is rare for any coun- markets but benefit when national competition makes benefits to all of society still taxes than they collect in ben- Gary Hufbauer, an econo- try to deliberately withdraw that meddling knocks down products better and cheaper. exceed the costs. efits. mist at the Peterson Institute from a trade pact except to barriers on the continent. Doug Irwin, a trade historian Even immigration is, on There would be costs to for International Economics, join a better one. Since the Critics say global integra- at Dartmouth College, says if balance, probably a plus. The an exit; a review of 13 sepa- thinks the slowdown in global World Trade Organization’s tion enriches elites at the ex- two million American work- Center for Economic Perfor- rate studies found eight say- trade since 2010, which he inception in 1948 (as the Gen- pense of the average worker. ers lose $15,000 in annual in- mance at the London School ing Britain would be worse blames in part on protection- eral Agreement on Tariffs and This, too, is off base. More come forever—an extreme es- of Economics finds that EU off and three saying it would ism, has left world GDP 2.7% Trade), 162 countries have skilled workers have gained timate of the impact of trade immigrants to Britain are bet- be better off. (The remainder smaller than otherwise joined and none have left. disproportionately, but every with China—while 320 mil- ter educated and more likely saw mixed effects). Still, even If Britain leaves the EU, This is largely because worker is also a consumer lion American consumers to work than U.K.-born na- the British government’s esti- expect that drag to grow in governing elites have come to and thus benefits when inter- gain just $100 from trade, the tionals, and to pay more in mates of 0.2 to 0.6 percentage the years ahead. U.S. Fed Chief Quizzed Watch On Bank Payments

BY KATE DAVIDSON policy, saying the difference CALIFORNIA between the rate on reserves Federal Reserve Chair- and the fed-funds rate is “re- Los Angeles Passes woman Janet Yellen on ally quite small” and adding Body-Camera Plan Wednesday sparred with there is likely to be a small gap Los Angeles on Wednesday House lawmakers who ques- between the two “for quite approved a nearly $60 million tioned her on a variety of is- some time.” measure to outfit its police force sues, including the Fed’s inter- The Fed since December has with body cameras. est payments to big banks. held the fed-funds rate be- With a plan to deploy 7,000 Ms. Yellen faced a much tween 0.25% and 0.50%. It has cameras, Los Angeles will be- more skeptical—and at times set the rate it pays on bank re- come the largest police depart- hostile—audience at the House serves at the top of that range, ment in the country to widely Financial Services Committee and uses another rate it pays adopt the technology. The cam- on the second day of her semi- on reverse-repurchase agree- eras became popular after annual monetary-policy testi- ments as the bottom.

deadly confrontations with police J PAT CARTER/GETTY IMAGES mony than she did when she Meanwhile, Democrats spurred nationwide protests An oil well fielder working on a well head at a fracking rig site near Stillwater, Okla., in January. testified before Senate law- prodded her to commit to do- starting in 2014. makers on Tuesday. ing more to help low-income Los Angeles City Council had ary temporarily blocked a major U.S. use fracking, the shortened Republicans pressed Ms. and minority workers, and to been set to approve the deal FRACK regulation limiting carbon emis- term for hydraulic fracturing. Yellen to justify how much in- promote diversity within the last year, but some members sions from power plants, deal- The ruling doesn’t mean terest the Fed pays banks on central bank. balked at the price as well as a ing an early and potentially fatal fracking is now unregulated, the money they park at the Ms. Yellen said she seeks to decision to skip competitive bid- ContinuedfromPageOne blow to a rule that is central to since it still is subject to state central bank, called reserves, do both. ding to speed up the process. used by many in the oil and Mr. Obama’s push to lead global rules. The federal regulations one of the tools it uses to man- “Our policies are designed On Wednesday, the council natural-gas industry. efforts to address climate applied on top of state rules age short-term interest rates. to make sure that we continue voted to approve the deal. “It’s unfortunate that imple- change. when the fracking was done on Committee Chairman Jeb to have improvements in the —Zusha Elinson mentation of the rule continues Congressional Republicans federal lands. Given the ruling, Hensarling (R., Texas) sug- labor market that will benefit to be delayed, because it pre- and industry groups pointed to federal standards that are 30 gested it was inappropriate for the African-American commu- MEDICARE vents regulators from using 21st this week’s ruling as evidence years old will remain in place the Fed to pay banks interest nity and others,” she said in century standards to ensure that Mr. Obama has been over- for fracking on federal lands, at a rate higher than its own response to one question. “I Higher Earners Face that oil and gas operations are stepping his authority. though Interior officials say benchmark federal-funds rate. have used my voice, and I will Steep Premium Rise conducted safely and responsi- “Only Congress can write they weren’t written to address Ms. Yellen defended the Fed continue to do so.” Nearly a third of all Medicare bly on public and tribal lands,” laws,” House Speaker Paul Ryan modern extraction technologies. beneficiaries could face a steep the spokeswoman said. (R., Wis.), said Wednesday in re- Industry trade groups ap- increase in their premiums next The government is expected sponse to the fracking ruling. plauded the decision. Neal year, the result of a policy that to appeal the ruling, which “Agencies acting without au- Kirby, spokesman for the Inde- can require some beneficiaries, would send the case to a federal thority from Congress is simply pendent Petroleum Association Existing-Home Sales including higher earners, to bear appeals court and possibly to illegal.” of America, said it shows “that the burden of rising costs. the Supreme Court. The regulation set stricter states are—and have for over 60 The federal health-care plan’s This week’s decision is the standards for disposing of years been—in the best position Hit Nine-Year High trustees projected in a report latest setback for Mr. Obama’s wastewater and disclosing to safely regulate hydraulic frac- BY JEFFREY SPARSHOTT The national median sale that premiums could rise by as environmental agenda, which he chemicals used in fracking. It turing.” price for a previously owned much as 22% for wealthier bene- has pursued largely by issuing was issued by the Interior De- Environmentalists expressed WASHINGTON—Sales of ex- home, meanwhile, was $239,700, ficiaries of Medicare Part B, regulations and bypassing Con- partment’s Bureau of Land Man- hope the full federal appeals isting homes rose to their high- up 4.7% from a year earlier and which covers doctor visits and gress. Administration officials agement in March 2015 and had court would review the case and est level in more than nine the highest figure recorded by other types of outpatient care. have become frustrated by what been in the works since 2012. It uphold the curbs. years and prices climbed to a the Realtors’ group. Home The trustees project individu- they see as Republican inaction applies to oil and gas drilling on “While there is no way to new peak in May, the latest prices are rising faster than als earning between $85,001 in the face of pressing environ- federal lands, which produce ever make fracking safe, the oil sign of rising demand amid wages across much of the U.S., and $107,000 and couples earn- mental issues, while Republi- 11% of the natural gas consumed and gas industry has repeatedly steady job creation and low in- potentially damping sales. ing between $170,001 and cans accuse the White House of in the U.S. and 5% of the oil, ac- proven that it needs more stan- terest rates. “Low inventory, especially $214,000 will have their monthly overreaching. cording to government data. dards to keep the public safe Sales climbed 1.8% in May for starter and tradeup homes, premiums rise from $170.50 a Last October, a federal ap- State regulations govern frack- from the dangers of fossil fuels, from the prior month to a sea- continues to stifle home sales person this year to about peals court blocked an Environ- ing on private and state lands. not less,” said Lena Moffitt, di- sonally adjusted annual rate of activity,” said Ralph McLaugh- $204.40 in 2017. For those earn- mental Protection Agency rule Much of the drilling is con- rector of the Sierra Club’s Be- 5.53 million, the National Asso- lin, chief economist at real es- ing more than $214,000, or that sought to put more bodies centrated in Western states, yond Dirty Fuels campaign. ciation of Realtors said tate website Trulia. $428,000 for couples, the proof water and wetlands under such as Colorado and Wyoming, Fracking involves injecting Wednesday. That was the Demand for homes has been jected increase is to about federal protection. A final deci- two of the states challenging water, sand and chemicals into a strongest pace since February especially strong as wages edge $467.20 a month, from $389.00. sion is pending. the standards. More than 90% well to break up dense rock and 2007. April’s sales figure was higher and mortgage rates re- —Anne Tergesen The Supreme Court in Febru- of new land-based wells in the release oil and gas. revised down to 5.43 million. main historically low.

THE WALL STREET JOURNAL (USPS 664-880) (Eastern Edition ISSN 0099-9660) (Central Edition ISSN 1092-0935) CORRECTIONS AMPLIFICATIONS (Western Edition ISSN 0193-2241) Editorial and publication headquarters: 1211 Avenue of the Americas, New York, N.Y. 10036 Published daily except Sundays and general legal holidays. Periodicals postage paid at New York, N.Y., and other mailing offices. Plans reported Tuesday for Adam Waytz, an empathy ment to Richard S. Wellins, a se- port incorrectly said it buys POSTMASTER: Send address changes to The Wall Street Journal, 200 Burnett Rd., Chicopee, MA 01020. All Advertising published in The Wall Street Journal is subject to the applicable rate card, copies of which the lifting of mandatory evacua- researcher and associate profes- nior vice president at Develop- from more than 16,000 websites. are available from the Advertising Services Department, Dow Jones & Co. Inc., 1155 Avenue of the Americas, tions Wednesday applied only to sor at Northwestern University’s ment Dimensions International. New York, N.Y. 10036. The Journal reserves the right not to accept an advertiser’s order. Only publication of an advertisement shall constitute final acceptance of the advertiser’s order. a fire in Santa Barbara County, Kellogg School of Management, A photo with a Business Letters to the Editor: Fax: 212-416-2891; email: [email protected] Calif. A U.S. Watch item about says few companies scientifi- French ad-technology com- News article Tuesday about California wildfires in some edi- cally measure outcomes from pany Criteo SA buys ad space Marathon Oil Corp. showed a NEED ASSISTANCE WITH YOUR SUBSCRIPTION? tions Wednesday incorrectly empathy training. In some edi- for resale from more than storage tank owned by Mara- CONTACT CUSTOMER SUPPORT. said those plans had applied to tions Wednesday, a Business & 16,000 publishers. An article thon Petroleum Corp. The cap- By web: customercenter.wsj.com two fires in the San Gabriel Tech article about such training about the company in Wednes- tion incorrectly implied it was a By email: [email protected] Mountains, outside Los Angeles. incorrectly attributed the state- day’s Ad Revolution special re- Marathon Oil tank. By phone: 1-800-JOURNAL (1-800-568-7625) Or by live chat at wsj.com/livechat Readers can alert The Wall Street Journal to any errors in news articles by emailing [email protected] or by calling 888-410-2667. For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com THE WALL STREET JOURNAL. ****** Thursday, June 23, 2016 | A3 U.S. NEWS Democrats Use Sit-In to Push Gun Bills

Action leads to late- thronged outside the Capitol in support of the House Demo- night confrontation crats. with GOP; Ryan calls Republicans said they didn’t want to simply give in on the move ‘publicity stunt’ gun votes and reward Demo- crats for flouting the cham- WASHINGTON—House ber’s rules to demand votes. Democrats wrested control of “We are going to do the peo- the chamber Wednesday to deple’s work,” said Rep. Ann Wag- mand votes on new gun curbs ner (R., Mo.) earlier in the eve- in a protest inspired by civil- ning. “We are going to conduct rights demonstrations that led the will of the people, and con- to a loud confrontation with duct ourselves, in an adult Con- Republicans on the chamber’s gress that is actually going to floor late Wednesday night. uphold, I think, the norms, the customs, the rules of the House.” By Kristina Peterson, Democrats said that their Siobhan Hughes protest had succeeded in raising And Natalie Andrews awareness of their quest to put new gun restrictions in place. Led by civil-rights cham- The demonstration, fueled pion Rep. John Lewis (D., Ga.), by lawmakers’ tweets and at least 170 House Democrats other social-media messages, staged a sit-in, occupying the quickly caught national atten- floor of the House chamber in tion during the day. For the an effort to extract votes from first time since the June 12 Republican leaders on bills mass shooting in Orlando, the that would expand background House dominated the debate checks for guns and prevent over new gun restrictions suspected terrorists from buy- rather than the Senate. ing firearms. Many Senate Democrats “There comes a time when joined the House lawmakers on you have to say something, the floor. With the House cam- when you have to make a little eras and microphones turned

noise, when you have to move U.S. REP. KATHERINEoff, CLARK/REUTERS lawmakers had to shout to your feet,” said Mr. Lewis, A photo tweeted Wednesday by a House member shows Democrats protesting to demand votes on new gun restrictions. be heard as they took turns shortly before a group of reading the names of gun-vio- House Democrats took the rare tests of Democratic lawmakers “nothing more than a publicity 12-hour mark, Republicans floor late Wednesday night, lence victims and chanting “no step of sitting on the cham- still holding their positions on stunt,” noting that the Senate didn’t appear willing Wednes- urging them to hold their bill, no break.” ber’s floor in protest around the chamber’s floor. had already defeated the kind day night to allow the chamber ground. The Democratic protest 11:30 a.m. Wednesday. As Republicans quietly cast of gun-control legislation the to vote on new gun curbs, an- “John Lewis says stay after wasn’t the first time the mi- More than 10 hours later, their votes, Democrats who Democrats were demanding. gering Democrats who had the votes, and we will stay,” nority party had taken over Republicans who had delayed had taken over the chamber’s “This is not a way to bring camped out on the floor, hold- said House Minority Leader the House’s floor, but new votes all day as Democrats oc- well continued shouting “no up legislation,” he told CNN. ing signs with the names of Nancy Pelosi (D., Calif.), trig- technology tools helped cupied the chamber moved to bill, no break,” a chant they “Now let’s focus on the issue gun-violence victims and gering Democratic chants of broaden its reach. C-Span, the reclaim it. House Speaker Paul had taken up early in the day, at hand here, terrorism, and armed with blankets—and pil- “stay, stay.” The cries of pro- cable network that shows con- Ryan (R., Wis.) convened the often led by the booming voice let’s find out what we need to lows as it grew later. testers from outside urging gressional proceedings, chamber shortly after 10 p.m. of Rep. Joe Crowley (D., N.Y.) do to prevent future terrorist “Hang on, hang on,” Mr. Democrats to “hold the floor” streamed a Periscope feed of to hold a brief series of votes, Earlier in the evening, Mr. attacks.” Lewis urged Democrats who filled the hallways outside the the House floor, provided by speaking loudly over the pro- Ryan said the action was As the protest passed the encircled him on the House chamber. Protesters also Rep. Scott Peters (D., Calif.). Funding Crisis Quickens Population of Nonwhites Grows

BY JANET ADAMY The new figures point to a the fact that whites and older Democratic presidential nomi- For Benefit Programs AND PAUL OVERBERG widening racial generation Americans have higher voter nee Hillary Clinton, since BY NICK TIMIRAOS 2009, trustees had estimated gap. While three-quarters of turnout rates. A big question in Puerto Ricans vote in larger that the hospital-care fund White Americans no longer Americans age 55 and older the presidential race is how numbers and are more heavily WASHINGTON—Medicare would be depleted by 2017. account for the majority in are white, just 56% of those 18 Midwestern working-class Democratic than most other and Social Security will begin Social Security faces deple- hundreds of counties across to 34 are white, and only whites, who appear energized by Latinos, Prof. McDonald said. to spend more than they earn tion by 2034, which would trig- the U.S., a trend transforming slightly more than half of mi- presumptive Republican nomi- In Texas, Latinos are the main by the end of this decade, new ger a 21% across-the-board ben- America’s social and political nors are white, according to nee Donald J. Trump, will stack group driving the shift, primarily projections showed Wednesday, efit cut if Congress doesn’t act. landscape as Latinos, Asians William Frey, a Brookings In- up against Latinos who have because they are younger and putting a spotlight on an issue More than 49 million Americans and blacks outpace white pop- stitution demographer. been angered by his derogatory have more children than whites, that has seen scant discussion collected retirement benefits ulation growth, according to comments about Mexicans and said Texas State Demographer in an election year—the pro- through the program last year, census figures out Thursday. Latinos, Asians and harsh stance on immigration. Lloyd Potter. Whites are also grams’ solvency challenges fac- and nearly 11 million received In 370 counties across 36 “We may be seeing Trump moving out of the urban cores of ing the next president. payments from a separate dis- states and the District of Co- blacks outpace white put more effort into the Rust Fort Worth and Austin. The annual report card ability-insurance program. lumbia, non-Hispanic whites population growth, Belt knowing that he’s going to A notable uptick in Asian from the programs’ trustees Last year, Social Security accounted for less than half have a difficult time in some of immigrants is also diversifying said Medicare’s hospital-insur- beneficiaries didn’t receive a liv- the population as of July 2015. census figures show. these Sunbelt states,” said Mi- these cities, Mr. Potter said. ance trust fund, which pro- ing-cost increase because falling That includes 31 additional chael P. McDonald, associate Immigration from Mexico has vides coverage to more than energy prices led to an annual counties since 2010, such as professor of political science at slowed so much that the per- 55 million Americans, will ex- decline in the inflation gauge those encompassing Fort These shifts will shape who the University of Florida. centage of immigrants coming haust its reserves by 2028, used to set such increases. Worth and Austin in Texas; wins this year’s elections, with In Florida, the Orlando met- to Texas from Asia is almost as two years sooner than esti- The costs of both programs Charlotte, N.C.; Savannah, Ga.; Democrats benefiting from the ropolitan area last year became high as the share coming from mated last year. are set to rise due to the aging and parts of suburban Atlanta growth of minorities since Lati- among the places where whites Latin America. Medicare’s trust fund is proof the U.S. population, making and Sacramento, Calif. nos, blacks and Asians are more are now the minority thanks to More Hispanics are being jected to face depletion earlier it difficult for the government Of the nation’s 3,142 coun- likely to vote Democratic. In a surge of Puerto Ricans, who born in the U.S. than are dying, than was forecast last year due to outrun the solvency prob- ties, the so-called minority several battleground states, in- have fled the financially trou- according to Kenneth Johnson, to slight revisions in projected lems even by sharply boosting majority ones—12% of the to- cluding Florida, Nevada and bled island. Non-Hispanic a University of New Hampshire incomes and costs, though fall- economic growth. Medicare tal—represent an outsize New Mexico, the racial genera- whites were 49.2% of the popu- demographer. The opposite is ing health-care costs in recent and Social Security accounted chunk of the U.S. population tion gap is even wider than in lation in 2015, down from 53.6% true of non-Hispanic whites, years have provided greater for 41% of federal spending since they are home to almost the rest of the country. in 2010. That could prove par- which had never been the case breathing room. As recently as last year, up from 36% in 2011. one-third of Americans. Republicans are helped by ticularly helpful to presumptive until four years ago, he said.

New York Bal Harbour Los Angeles South Coast Plaza Las Vegas

chloe.com © 2016 CHLOE. ALL RIGHTS RESERVED. For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com A4 | Thursday, June 23, 2016 PWLC101112HTGKBFAM123456789OIXX ***** THE WALL STREET JOURNAL.

Some Business Leaders Abandon GOP

Clinton to get backing provided the list and said it cans for president in the past policy hand, said he would billionaire who had supported The list of business leaders would be distributed widely on but couldn’t support Mr. back Mrs. Clinton if, as ex- former Florida Gov. Jeb Bush. backing her includes several from executives, some Thursday. Trump. “Serving as the leader pected, Mr. Trump is the GOP Last week, Mr. Trump raised who have supported Democrats of whom cite unease The endorsements reflect of the free world requires ef- nominee. money in Texas, meeting with in the past, including Eric continuing unease among some fective leadership, sound judg- After a slow start, Mr. several of his party’s wealthi- Schmidt of Alphabet Inc., with Trump candidacy Republicans with the presump- ment, a steady hand and most Trump is racing to shore up his est donors. Sheryl Sandberg of Facebook tive GOP presidential nominee importantly, the temperament standing with his party’s estab- After a low fundraising haul Inc., and Warren Buffett of BY LAURA MECKLER despite his romp through the to deal with crises large and lishment and in recent weeks in May, Mr. Trump has raised Berkshire-Hathaway, Inc. primary contest. small. Donald Trump lacks has been making overtures to at least $19 million for his joint Others endorsing the former More than 50 business exec- Mr. Cicconi, who worked for each of these characteristics,” top GOP donors, many of fund with the Republican Na- secretary of state include Holly- utives, including several long- Presidents Ronald Reagan and said Mr. Akerson, who also whom supported others in the tional Committee in recent wood-turned-internet executive time Republicans, will endorse George H.W. Bush, said he has served as a Navy surface war- primaries and haven’t been weeks and about $3 million for Barry Diller of IAC/InterActive- Hillary Clinton for president on backed every GOP presidential fare officer. quick to warm to him. his campaign, people familiar Corp; Hollywood executive Pe- Thursday as her campaign candidate since 1976. “But this On Wednesday, Brent Scow- Mr. Trump attended a fund- with the matter said. ter Chernin, of The Chernin seeks to capitalize on discom- year I think it’s vital to put our croft, a national security ad- raiser at Le Cirque in New York Senior Clinton policy ad- Group; Wendell Weeks of Corn- fort with Republican Donald country’s well being ahead of viser for two Republican presi- City on Tuesday, attended by viser Jake Sullivan briefed sev- ing Inc.; Reed Hastings of Net- Trump. party,” he said. “Hillary Clinton dents, endorsed Mrs. Clinton, hedge-fund manager John eral of her supporters from the flix Inc.; and Rob Marcus, for- They include Jim Cicconi, is experienced, qualified, and saying her experience, judg- Paulson, who had backed four business community on a con- merly of Time Warner Inc. senior executive vice president will make a fine president. The ment and understanding of the of his rivals during the Repub- ference call Wednesday, during —Rebecca Ballhaus at AT&T Services Inc., and Dan alternative, I fear, would set world prepare her for the job lican primaries. which he outlined the eco- and Rachel Ensign Akerson, who held top posi- our nation on a very dark of commander in chief. His He also attended a breakfast nomic agenda she laid out in a contributed to this article. tions at General Motors Co. path.” support comes a week after Wednesday at Cipriani in Mid- pair of speeches this week, as and Nextel Communications Mr. Akerson said he has Richard Armitage, another town, co-hosted by New York well as her critique of Mr. Small businesses are wary of Inc. A Clinton campaign aide consistently voted for Republi- longtime Republican foreign- Jets owner Woody Johnson, a Trump’s record and policies. election...... B1 In a Shift, Rubio Will Now Run For Senate

BY SIOBHAN HUGHES

WASHINGTON—Sen. Marco Rubio said he would run for re- election to the seat he had previously planned to give up, en- ergizing Republicans fighting to retain control of the Senate in the November elections. “In politics, admitting you’ve changed your mind is not something most people like to do. But here it goes,” the Florida Republican said Wednesday. “I have decided to seek re-election to the U.S. Senate.” His decision is a boost for Republicans, who fear they will

DREW ANGERER/GETTY IMAGES (TRUMP); CHUCK BURTON/ASSOCIATED PRESS (CLINTON) lose control of the Senate in Donald Trump said his Democratic rival ‘perfected the politics of personal profit and even theft.’ Hillary Clinton said Mr. Trump ‘has no real strategy for creating jobs.’ November, given the GOP’s mathematical disadvantage in this year’s election—it has 24 Trump, Clinton Exchange Barbs in Speeches seats to defend, compared with 10 for Democrats. Until Mr. Ru- bio officially entered the race, BY BETH REINHARD major addresses of the general would cause a recession. “Don- and phrases used for months by “Her decisions spread Republicans were unsure of AND PETER NICHOLAS election, accused Mrs. Clinton of ald Trump continues to prove one of his top policy aides, Ste- death, destruction and terror- whether they even had a shot at using her post as secretary of that he is unqualified and unfit phen Miller, in introducing Mr. ism everywhere she touched,” keeping the Florida seat, put- Donald Trump uncorked a State during President Barack to be president,” he said. Trump to crowds at rallies Mr. Trump said. “In just four ting additional pressure on vul- series of blistering attacks on Obama’s first term to enrich Mrs. Clinton included several across the country. years, Secretary Clinton man- nerable Republicans in states Democrat Hillary Clinton on herself. references to her Methodist Mr. Trump didn’t mention aged to almost single-handedly such as New Hampshire, Penn- Wednesday as the Republican He also said her policies de- faith in her speech, a day after one of his campaign’s most pro- destabilize the entire Middle sylvania and Ohio. seeks to regain his footing in stabilized the Middle East and Mr. Trump told a group of social vocative proposals: a ban on East.” With his name recognition the presidential race, calling her North Africa, and that she and conservatives that “we don’t Muslim immigrants entering the Clinton campaign aides ex- and ability to raise money, Mr. “the most corrupt person ever her husband, former President know anything about Hillary in country, which he first offered pect Mr. Trump to continue to Rubio is viewed as the party’s to seek the presidency.” Bill Clinton, accepted speaking in December after the San Ber- target her personally in the best candidate to hold on to the Speaking a short time later fees and contributions to their He calls former nardino, Calif., shootings and re- course of the campaign and seat in Florida, a large state in North Carolina, which is family’s charitable foundation stated last week after the mas- said she would be selective in that favors well-funded candi- likely to be a battleground state from Wall Street and foreign secretary of state sacre at a gay nightclub in how she responds, in an effort dates. Even before he officially this fall, Mrs. Clinton veered governments. corrupt; she says he Orlando, Fla. On Wednesday, Mr. to avoid trading insults contin- declared for the seat, the Sen- from a planned speech about “Hillary Clinton has per- Trump twice mentioned the ually with Mr. Trump. ate Leadership Fund, a group the economy to rebut his volley fected the politics of personal lacks policy plans. threat that terrorists pose to In another sign that Mr. tied to Senate Majority Leader of attacks and make a rare de- profit and even theft,” Mr. “peaceful Muslims” and focused Trump’s campaign is making Mitch McConnell (R., Ky.), had fense of the work of the Clinton Trump told an audience of on blocking Syrian refugees who adjustments, a newly revved- promised to spend heavily on Foundation. about 100 people at a New York terms of religion.” “All he can haven’t been properly vetted. up press operation fired off his behalf to help him win. She sought to explain Mr. hotel bearing his name. “She do is try to distract us. That’s But the thrust of his speech one attack after another during But the first-term senator Trump’s focus on her character ran the State Department like even why he’s attacking my was aimed at Mrs. Clinton, one Mrs. Clinton’s speech on Tues- also faces some challenges, and career as a tactic meant to her own personal hedge fund, faith,” she said. day after she delivered a speech day, in which she bashed Mr. starting with the primary race divert attention from what she doing favors for oppressive re- Mr. Trump’s remarks marked claiming Mr. Trump would Trump’s potential stewardship on Aug. 30, when he will face a described as his own lack of gimes, and many others…in ex- his campaign’s latest attempt to “bankrupt” the U.S. economy. of the economy. The Trump threat from his right flank. The policy plans. “He has no real change for cash, pure and sim- show that he can unify a Repub- Mr. Trump blamed the for- campaign also announced four campaign of Carlos Beruff, a strategy for creating jobs—just ple.” lican Party that is increasingly mer secretary of State for the new staff hires, including a na- wealthy Florida home builder, a string of empty promises,” she Asked for response, Glen worried about his comportment, deaths of four Americans in the tional political director and on Wednesday accused Mr. Ru- said. “And maybe we shouldn’t Caplin, a Clinton campaign his small campaign organization 2012 terrorist attack on the U.S. digital media director. It said it bio of political opportunism, expect better from someone spokesman, said Mr. Trump was and an embryonic finance team diplomatic outpost in Benghazi, was launching an anti-Clinton suggesting he was only running whose most famous words are, offering “lies and nutty conspir- that has lagged far behind Mrs. Libya, and said that her foreign website “to showcase some of for the Senate “so he’s better ‘You’re fired.’” acy theories” to distract from Clinton’s fundraising efforts. policies helped Islamic State Mrs. Clinton’s most disastrous positioned to abandon the vot- Mr. Trump, in one of his first economic policies that, he said, His speech echoed themes rise to power. lies to the American people.” ers again to run for president” in 2020. If he wins the primary, Mr. Rubio is expected to face off GOP Unveils Its Alternative against either Rep. Patrick Mur- phy, who is backed by the Sen- ate Democrats’ campaign arm, or Rep. Alan Grayson. To Democrats’ Health Law Mr. Rubio, who ran for president this year, easily swept into office in the 2010 GOP wave. BY LOUISE RADNOFSKY Obamacare, and make health shifted to employees,” said But the landscape in the 2016 AND SIOBHAN HUGHES care actually affordable. Well, James Gelfand, senior vice presidential election year is far here it is, a real plan, in black president of health policy for different from 2010, a midterm WASHINGTON—House Re- and white, right here,” Mr. the Erisa Industry Committee. election, when Democratic turn- publicans Wednesday laid out Ryan said at a packed event at “A tax on benefits has no place out tends to be lower. their vision for repealing and the American Enterprise Insti- in a conversation about im- “It’s not just that you go replacing the Affordable Care tute, a conservative-leaning proving the health-care sys- from 50% turnout to upward of Act, positioning themselves think tank, on Wednesday af- tem, and it overshadows the 65-70% turnout of registered across several political fault ternoon. “This is our consen- many good ideas otherwise in- voters—it is that those regis- lines in the process. sus for a better way forward.” cluded,” he said. tered voters are very different

In a 37-page proposal from House Republicans cast the GOP chairmen defended the CAROLYN KASTER/ASSOCIATED PRESS who come out in the presiden- House Speaker Paul Ryan and proposal to limit the employer move. “The intent is not to do Speaker Paul Ryan and Rep. Cathy McMorris Rodgers Wednesday. tial election in Florida, and GOP committee chairmen, Re- exclusion as a way to increase away with employer-provided they’re not necessarily favor- publicans said they would take-home pay—since workers health care,” said Rep. John get tax credits that could be The Obama administration able to Marco Rubio,” said Dan- strike the law in its entirety, accept lower pay in exchange Kline (R., Minn.), who heads used to purchase insurance and other supporters of the iel Smith, a political-science but then reinstate a handful of for tax-free benefits—as well the House committee on Edu- through the individual market, law attacked those proposals professor at the University of its requirements, such as a ban as crucial to curbing national cation and the Workforce. “It’s which would be estimated to as insufficient. Florida. “They tend to be youn- on insurance companies drop- health spending and making to make it actually more avail- cover at least the cost of cata- Bob Greenstein, president of ger; they tend to be more Dem- ping consumers just because insurance less expensive for able for more people, and strophic insurance. The exact the left-leaning Center on Bud- ocratic in terms of voter regis- they get sick. people buying it on their own. we’re going to do that by driv- value of the credit wasn’t get and Policy Priorities, said tration, and they tend to be The Republican plan would That proposal drew swift ing down the cost.” specified. the GOP plan would cost peo- more people of color. If past is include new tax credits and criticism from groups repre- The GOP plan would sweep Uninsured people would ple their coverage “because it any prelude, we should see coverage guarantees for people senting large employer benefit away the health law’s require- have a one-time opportunity to would repeal or severely them come out in droves in the who don’t get insurance programs, who said they rep- ment for insurers to offer cov- sign up for coverage, and then weaken health reform’s cover- general election.” through a job, and cap the tax resented around 175 million erage to all regardless of their they would be required to age expansions, force people to Another factor will be the benefit for health coverage of- Americans covered, as well as medical history, one of the maintain insurance to benefit rely instead on a badly flawed impact of presumed Republican fered by employers. from other trade associations. most popular provisions of the from the guarantee that they tax credit to buy coverage in a nominee Donald Trump at the The party has wrangled for “The policy rests on the law, at the same time that it could buy it at the same price, largely unregulated individual top of the ticket. Some Republi- years over whether and how to myth that employer-sponsored does away with the unpopular regardless of their medical his- market, weaken or end key cans worry that Mr. Trump create an alternative to the health insurance is overly gen- requirement for most individu- tory and any existing condi- measures to protect consum- could hurt the re-election Democrats’ 2010 federal health erous—that working families’ als to obtain coverage or pay a tions. People who tried to en- ers in that market, and re- chances of GOP lawmakers. law. “[For] six years, we have benefits need to be reduced, penalty. roll late would likely see a structure and substantially cut —Kristina Peterson promised to repeal and replace and that more costs need to be Instead, Americans could period of higher costs. Medicaid over time.” contributed to this article. For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com THE WALL STREET JOURNAL. Thursday, June 23, 2016 | A5

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Overallwinneratthe24HoursofLeMans. For the 18th time. For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com A6 | Thursday, June 23, 2016 **** THE WALL STREET JOURNAL. BRITAIN’S EU REFERENDUM U.S. Fears Lost Clout Under ‘Brexit’ Vote

Officials worry vote to leave EU would hurt diplomatic leverage, domestic economy

BY IAN TALLEY

Officials in Washington have expressed concern that a British vote to exit the European Union would buffet the U.S. economy and cause strategic and diplomatic rifts between the U.S. and many of its closest global allies. In the near term, U.S. officials worry a so-called Brexit could jolt a still-weak U.S. economy if growth in Amer- ica’s largest trading partner, the EU, takes a hit. Longer

term, the Obama administra- ANDREW PARSONS/ZUMA PRESS; GEOFF CADDICK/PRESS POOL (LEFT) tion is concerned a U.K. with- U.K. Prime Minister David Cameron, left, addressed ‘Remain’ supporters in Bristol on Wednesday, while Boris Johnson, London’s ex-mayor, met ‘Leave’ backers in Selby. drawal will blunt Washington’s diplomatic leverage in Europe. and Investment Partnership, a Brexit could undermine the Officials fear a Brexit could II order in Europe, which is policy think tank. The U.K. has often repre- sweeping trade deal the U.S. is global clout of key American trigger a larger disintegration centered around U.S. support Nicholas Burns, a former sented U.S. strategic and trade negotiating with Europe. Brit- allies. “A strong and united Eu- of the European project, setting for a strong, unified Europe,” No. 3 at the State Department positions within European in- ain’s departure could also de- rope that includes Great Brit- a precedent for other member said Jacob Kirkegaard, a senior who is now a professor at Har- stitutions, most recently prive the EU of one of its most ain is a stronger Europe and a states for follow. fellow at the Peterson Institute vard’s Kennedy School of Gov- in challenging an aggressive muscular militaries and compli- stronger partner,” he said. Across Europe, the U.K. exit for International Economics. ernment, said Britain has tra- Russia and helping negotiate a cate intelligence and data-shar- “America values a strong campaign has galvanized anti- “This is a giant step explicitly ditionally played a hard-nosed, nuclear agreement with Iran. ing among Western allies. U.K. voice in a strong EU,” said EU and populist political par- in the other direction.” common-sense role in Europe, An EU without the U.K., The U.S. State Department Jeffrey Zients, director of the ties that have gained trac- That is particularly impor- “restraining some of the worst many analysts say, is more likely has trod cautiously on the is- White House’s National Eco- tion amid a growing tant as the EU has increasingly impulses of the West Europe- to lift the sanctions against Rus- sue, not wanting to interfere in nomic Council, echoing the immigration crisis after nearly a become a foreign-policy actor, ans.” sia for its intervention in a foreign referendum. But Sec- argument President Barack decade of economic turmoil. said Frances Burwell, a Euro- “You’re looking at poten- Ukraine. The U.S. would lose an retary John Kerry, when in Obama made in April to Brit- “This has the potential for pean expert at the Atlantic tially the weakening of our ally in the Trans-Atlantic Trade London in May, signaled that a ish voters against an exit. unraveling the post-World War Council, a Washington-based No. 1 ally in Europe,” he said.

later, he issued a rallying cry on RULES Manx TV, the Isle of Man’s tele- Cameron Makes a Last-Ditch Vow vision station. During the interview, Mr. Rhys-Davies expressed BY JASON DOUGLAS continued to show the out- ish exit from the bloc. cratic, and urged Britons to ContinuedfromPageOne optimism his star power would come too close to call. His pledge to return to the “take back control” of their Queen Elizabeth II. carry the day. When told on air LONDON—Prime Minister The prime minister said in table marked a last-ditch ef- country and its economy. The debate over “Brexit,” as the U.K. law determining who David Cameron pledged to an interview with the British fort to assuage concerns over “Unless it’s a massive unex- Britain’s potential exit from the can vote had already been rati- pursue greater European Broadcasting Corp. that he in- immigration that have fueled pected victory for Remain, it EU is known, isn’t simple. Nei- fied, Mr. Rhys-Davies was un- Union overhauls if Britons tended to reopen the issue of anti-EU sentiment. will not be considered set- ther is figuring out who gets to fazed. backed his call to stay in the freedom of movement, a core Shortly after, though, Euro- tled,” said Stephen Fisher, as- cast a vote. “Bullshit,” he said in his bloc in Thursday’s referendum, EU principle that allows citi- pean Commission President sociate professor in political During World War I, the U.K. booming baritone voice while a last-minute promise to vot- zens of member-states to live Jean-Claude Juncker poured sociology at the University of passed laws allowing “British swiping his hand. “Bullshit!” ers flirting with an exit that and work freely in any country cold water on the idea of re- Oxford. “I don’t expect this is- subjects” from across the em- A small group of supporters was immediately undercut by in the bloc, with other leaders. opening talks. “He got the sue to ever go away from Brit- pire to vote in U.K. general elec- from the Isle of Man and two the head of the European His renegotiation of the terms maximum he could receive and ish politics.” tions. The empire crumbled but other small islands, Guernsey Commission. of Britain’s membership in we gave the maximum we Two surveys on Wednesday, the rights live on. People from and Jersey, which are off the Campaigners on opposing February, which put fresh re- could give,” Mr. Juncker said from pollsters Opinium Re- some 53 countries can vote in U.K.’s southern coast, coalesced sides of the U.K.’s debate over strictions on new arrivals’ ac- in Brussels, referring to the search LLP and TNS, a unit of the referendum as long as they around him. They drew up a its relationship with the Euro- cess to welfare, was part of a February deal. WPP PLC, gave a small edge to live in the U.K. or Gibraltar, a press release. They sent a letter pean Union made their final continuing process, he said. The campaign for “Brexit,” the pro-Brexit camp, while British territory off the tip of to a British daily newspaper. pitches to British voters “If we stay in the European led in part by senior Conser- polls by CommunicateRe- Southern Spain. People residing Mr. Rhys-Davies began a cam- Wednesday ahead of a historic Union, reform continues on vative figures in Mr. Cam- search Ltd. and YouGov PLC in Gibraltar can’t vote in gen- paign to drum up support at his vote that is being closely Friday,” Mr. Cameron said on eron’s own administration, has gave the lead to Remain. Most eral elections but got a pass for 19th-century private-members watched in financial markets, Wednesday before embarking made controlling immigration surveys signaled that at least this one. club in London. European capitals and beyond. on a whistle-stop tour to en- a centerpiece. It has also por- one in 10 voters still hadn’t Citizens of Ireland, which The group also fired off a The most recent opinion polls courage voters to reject a Brit- trayed the EU as undemo- made up their minds. was part of the U.K. when the letter to the Privy Council, a law passed but later left the body that advises the Queen post-imperial club, known as and oversees governance of the carte,” where remaining EU the Commonwealth, when it be- islands. It said Mr. Rhys-Davies VOTE Volatile Reaction countries ask for advantages came a republic, can nonethe- would take the issue to the Eu- Investors say that a vote in favor of Britain's leaving that hamper policies to pro- less vote because of a special ropean court if necessary, not- the EU could result in steep losses for the pound. mote growth and trade, said act passed in 1949. ing it was “something we would ContinuedfromPageOne Philippe Ithurbide, global head Barred from having a say is all rather avoid.” It was signed, has an impact on the rest of Implied volatility on one-month pound dollar options contracts of research at Amundi, Eu- anyone else, including the three “your humble servants.” the world,” said Tom Manning, 30% rope’s largest asset manager. million EU citizens living in the Reaction has been muted. chief executive at F.L. Putnam Investors have already sold U.K. and thousands of Brits who The petition has collected 2,021 Investment Management. 25 European equity funds for 19 have lived abroad for more than signatures, far short of the While the magnitude of the straight weeks ahead of the 15 years. 100,000 needed for the issue to Feb. 20: market reaction is uncertain, vote, according to data from The Isle of Man counts as be debated in Parliament. The the direction appears clear: If 20 Cameron says EPFR Global. Surveys by Bank abroad. It was invaded by Vi- queen and her advisers pooh- Britain votes to leave, inves- referendum will of America and asset manager kings before bouncing between poohed the appeal. tors will rush to safety and 15 take place June 23 GAM have suggested that in- the Scottish and English crowns “Her Majesty, having taken precipitate a steep move in vestors see the prospect of a until the 14th century, when it the report into consideration, global markets on Friday from 10 Brexit as the greatest poten- settled with an English mon- was pleased, by and with the risky assets to havens. tial risk to markets this year. arch. Today, it is a “self-govern- advice of her privy council, to Foreign-exchange providers 5 Activity and volume in op- dismiss the petition,” a docu- and money-transfer shops are tions markets suggest institu- ‘It’s simply not fair, ment summarizing the meeting limiting transactions—or even tional investors are hedging said. suspending them—around the 0 against a fall in the S&P 500. and I don’t like The actor blames his peti- time the referendum results Jan. 2016 Feb. March April May June This month, investors have unfairness,’ says Mr. tion’s failure in part because it come out. Moneycorp, a Brit- *Through 7 p.m. BST Wednesday been buying an increasing pro- is hard to find on Parliament’s ish currency firm, says it will Source: Thomson Reuters THE WALL STREET JOURNAL. portion of put options—which Rhys-Davies. website. He thinks the queen turn off its online operation grant the right to sell an un- would have been displeased and Thursday evening and not derlying stock at a specific suspects her council didn’t fully bring it back until Friday. Countdown price by a certain time—coming Crown dependency,” which inform her of his situation. His “I’d consider it a shock | A guide to the vote pared to call options, accord- means it isn’t part of the U.K., schedule hasn’t helped. Mr. event,” said Michael Thomp- Polls are open Thursday Sunderland, a city in northern ing to Randy Frederick, direc- even though Britain is responsi- Rhys-Davies has been jetting son, managing director and from 7 a.m. to 10 p.m. U.K. England. tor of trading and derivatives ble for its foreign affairs. Queen between New Zealand, Australia chairman at S&P Investment time, with no public exit polls at Schwab Center for Financial Elizabeth is its head of state and the U.S. in recent months Advisory Services, as “people expected. There may be a good Research in Austin, Texas. and goes by the title “Lord of working on various projects. look for the most stable lad- indication of which way the “When you look at all the con- Mann.” A U.K. government spokes- ders.” From around 11 p.m., the referendum is going by about siderations, the potential is Tuvalu, it is fair to say, is man said the effort was simply The long-term conse- counting offices will begin to 4:30 a.m., when about three big and uncertainty is high,” also abroad, but since it was too late. Guernsey and Jersey quences are hard to gauge. Ad- release estimates of the quarters of results are he said. once an outpost of the British said the matter was out of their vocates of a British exit, percentage of registered voters expected. Companies in the S&P 500 Empire, its citizens living in the hands. “The ship sailed, really,” known as “Brexit,” say Britain that cast a ballot. derive roughly 2.9% of reve- U.K. are enfranchised. On the is- said a Guernsey spokesman. would be revitalized by the The result is expected to be nues from the U.K., according lands, the EU vote isn’t causing A spokesman for the Isle of ability to chart its own eco- Around 12:30 a.m., the first formally declared between to data from FactSet, trailing a big stir. Man government said it didn’t nomic and regulatory course. results are expected to start around 7 a.m. and 9 a.m. only the U.S. and China. “The question doesn’t really mind being excluded from the While the 28-nation European being announced. The first area (around 2 a.m. and 4 a.m. New The bigger effect on U.S. matter to Tuvalu,” said Iftikhar vote, conceding its 85,000 Union is an economic power- likely to declare results is York time) Friday. stocks is likely to come from a Ayaz, the London-based honor- strong population “were never house, Britain alone is no return of so-called risk-off ary consul of the sun-kissed likely to swing the vote any- slouch, and plenty of countries trading across the world’s fi- atolls. Maybe a dozen Tuvalu- way.” thrive outside the bloc. place him—a process that concerned about countries nancial markets. That could ans live in the U.K. and can vote But interviews with dozens would take months. Mr. Cam- such as Ireland, a large U.K. send investors out of stocks in elections, he adds. The coun- of global investors suggest last eron could stay on until a new trading partner, and the frag- and back into gold, the yen try is “far, far away.” week’s volatile market action leader is chosen. There might ile economies of Spain, Portu- and U.S. Treasury bonds, Earlier this year, Mr. Rhys- could offer a taste of what even be a new general elec- gal and Italy. which tend to gain in times of Davies, who is also known for could come in the short term tion: British law prescribes “When people first started market stress. “It’s pure senti- playing an Egyptian excavator if Britain votes to leave—a 5% one every five years, and the talking about this, it was paro- ment,” said Tina Byles Wil- in two “Indiana Jones” movies, to 10% drop in global stock next is due in 2020. But a su- chial discussion about how liams, chief investment officer was attending dinner parties on markets and steep losses for permajority of Parliament will this affect the U.K., but in- atFISGroup.“Youhavelow the Isle of Man when anger the pound. could force one sooner. creasingly people are realizing growth and tepid earnings, so struck. “You come back into the An exit vote would also toss Against the backdrop of that this could have very seri- those sentiment changes have world and you realize—this is British politics into near-im- politics, the epicenter of the ous and important ramifica- an outsize impact.” outrageous,” he said. mediate mayhem. Mr. Cam- market reaction on Friday will tions for Europe,” said Peter If the U.K. does vote to exit The island has “been part of eron has campaigned against be the pound, which analysts Westaway, an economist at and the dollar strengthens, it the British isles for 1,000 years. an exit for months, and while forecast would fall sharply Vanguard Asset Management. could weigh on emerging mar- These people fought against the he says he will stay on if his against the dollar. While some investors ex- kets with dollar-denominated Spanish Armada, Napoleon and country chooses one, many an- But European stock markets pect the initial shock reaction debt and hinder the nascent Hitler,” Mr. Rhys-Davies said. “If alysts say his position would stand to lose as much, inves- to be short-lived, others think recovery in commodity prices, hundreds of years of shared his- be untenable. tors say. UBS Group AG and it could trigger longer-term tightening financial conditions tory and sacrifice in war

Practically, he could resign Deutsche Bank AG this week losses if it emboldens euro- just as the Federal Reserve is doesn’t buy us a say in our fu- BUCHAN/REX SHUTTERSTOCK/ZUMA PRESS or be removed as party leader forecast double-digit losses for skeptic groups across the Con- seeking to raise interest rates. ture, then what does?” Actor John Rhys-Davies is a by his own lawmakers in a no- European equities in the short tinent, or punctures a delicate —Jenny Gross and Mr. Rhys-Davies filed his pe- British citizen, but isn’t eligible confidence vote. That would term on an out vote. global recovery. Georgi Kantchev tition to Parliament in February to vote because he has been trigger a bitter contest to re- Investors are particularly You could have “Europe a la contributed to this article. asking for a vote. Five days an expatriate too long. THE WALL STREET JOURNAL. **** Thursday, June 23, 2016 | A7 WORLD NEWS Israel Revives Ottoman Railroad Israeli

Bid to boost commerce President with Arab neighbors gets a frosty official Says Peace reception Is Far Off BY ORR HIRSCHAUGE BY JOSEPH ATAMAN AND RORY JONES AND LAURENCE NORMAN

JEZREEL VALLEY, Israel— BRUSSELS—Israel’s presi- More than a hundred years dent warned that there was no ago, the Ottoman Empire built prospect of a peace deal with a railway line that shuttled the Palestinians in the near fu- goods on steam locomotives ture and urged the European from the Mediterranean Sea to Union to show patience and the souks of Damascus and the put its weight behind mea- Saudi holy city of Medina. sures to facilitate future nego- Now Israel is poised to tiations. open new tracks tracing the In a speech to the European old line between the port of Parliament on Wednesday, Re- Haifa and a terminal 5 miles uven Rivlin criticized France’s short of the Jordanian border, peace-conference initiative, in a bid to boost moribund launched earlier this month,

commerce with the country’s RORY JONES/THE WALL STREET JOURNAL which he said amounted to Arab neighbors. But they have Israel’s Jezreel railway line runs from the port of Haifa to close to the Jordanian border. Further connections haven’t been secured. “negotiations for negotiations’ officially given the project a sake” and would only deepen frosty reception, hampering been raging since 2011, Israeli LEB. portation issues, for fear of divisions between Israelis and Med. SYRIA its prospects even as trade and Jordanian officials and Sea Burgeoning Trade alienating their pro-Palestin- Palestinians. flourishes along the route. shipping companies say. Trucks and containers handled at ian public. Later in the day, Palestinian Haifa ISRAEL The former Hejaz Railway Cargo handled at the Sheikh the Israel-Jordan border “There is nothing that I’ve Authority President Mahmoud connected the area that is now Hussein border crossing be- 15,000 heard about a railway project Abbas, who was also visiting Israel with the Arab world fur- tween Israel and Jordan in- Proposed to connect Israel and Jordan,” Brussels, called the French ther east, running through ter- creased 65% between 2010 and railway said Ayman Hatahet, who was peace push a “vital conference Beit She'an ritory now riven by Middle 2015, and the number of cargo 10,000 Jordan’s minister of transpor- for our region and the whole East borders. After the estab- and containers trucks using tation until recently. Attempts world.” WEST JORDAN lishment of Israel in 1948, it the route nearly quadrupled in BANK to reach his successor, part of U.S.-brokered Israeli-Pales- 5,000 was dismantled and regional that time, according to the Is- Tel Aviv a new Jordanian government tinian negotiations fell apart in trade was blunted by a series raeli Airports Authority. sworn in earlier this month, 2014 over disagreements on 20 miles of Arab-Israeli wars. More firms have been Jerusalem 0 were unsuccessful. land swaps and prisoner ex- “We always thought that bringing boats into Haifa bear- 20 km Transferring Turkish exchanges. The White House has 2010 ’11 ’12 ’13 ’14 ’15 this line symbolizes peace ing containers and trucks that Source: Netivei Israel - National Transport ports via Israel on rail or road been working on options for with the region,” said Ilan then travel by road to Jordan Infrastructure Company Source: The Israel Airports Authority is impossible to Arab coun- reviving negotiations before Rozenfeld, the project director and on to Saudi Arabia, Iraq THE WALL STREET JOURNAL. THE WALL STREET JOURNAL. tries with which Israel doesn’t President Barack Obama leaves for the new 40-mile railway and the Gulf, carrying Spanish have diplomatic relations, office, although it isn’t clear line, as he rode in an electric oranges, Jordanian textiles best way for business” as it is Jordanian officials to eventu- such as Saudi Arabia, Mr. Ha- whether the administration train carriage through the fer- and car parts from Europe. cheaper and takes less time, ally connect the new railway tahet said. Saudi Arabia’s for- will launch new talks before tile green plains of the Jezreel On a recent morning at said Mr. Mohammed, a 20- line to a network in Jordan, eign ministry didn’t respond January. Valley southwest of the Sea of Haifa port, Turkish driver year veteran trucker. “This which could then link with to requests for comment. EU officials said they were Galilee. “We have been waiting Nazem Mohammed unloaded makes it a promising route.” railways Saudi Arabia plans to Informal relations with hoping that Mr. Abbas and Mr. for a long time.” his truck from a ship that had Yet development of the develop. Such ties would truly Saudi Arabia and Gulf coun- Rivlin would meet and talk in The new line, built at a cost come from Mersin in Turkey. trade route is hampered by revive the Hejaz Railway, tries are handled under the ta- Brussels. That would be the of roughly $1 billion and set to He used to drive through Syria competing economic and polit- which opened in 1908. ble, “but it is clear that the highest level meeting between open in October, holds some to get his vegetables and fruits ical interests, underscoring But the prospect of getting cargo flows,” Mr. Katz said. the Israeli and Palestinian promise, Israel’s transporta- to Jordan’s capital, Amman. the obstacles Israel faces to any goods out of Israel on the “Weareagatewaytothe leadership since the 2014 talks. tion ministry says. Trade Now he has to either go by sea become a regional gateway. railway still appears highly East.” No meeting had taken place by through Israel via road has in- via the Suez Canal to deliver Israel’s Transportation Min- uncertain, at least in the near —Suha Ma'ayeh in Amman, Wednesday evening, though Is- creased in recent years as goods to Saudi Arabia, or over ister Yisrael Katz said a pro- term. Arab officials are reti- Jordan, and Abubakr Rashid raeli officials said Mr. Rivlin shipping companies have land through Israel to Jordan. posal has been discussed with cent to publicly discuss ties in Gaza contributed was ready to meet Mr. Abbas avoided Syria, where war has The Israeli route “is the Jordan’s King Abdullah II and with Israel, including trans- to this article. at any time. Spain Tries a Second Time to Elect a New Government

BY MATT MOFFETT grily bickering and failed to Ms. Martínez-Bascuñán. line up behind any one leader. While Socialist leader Pedro MADRID—As Spain girds A second vote in which no Sánchez has campaigned door- for its second national election party reaches the threshold to to-door and at public rallies, in just over six months, the govern outright could mean she noted, Podemos leader campaign logo for the front- another stalemate and the out- Pablo Iglesias has depended running Popular Party has at- side chance of a third round of more upon television, Twitter tracted attention for what it elections. and WhatsApp to mobilize doesn’t feature—any reference The Popular Party’s conser- supporters. to its standard-bearer, Prime vative base of largely older Mr. Rajoy continues to face Minister Mariano Rajoy. voters, which views it as a a chilly response to his idea Popular Party officials say guarantor of stability, has for a post-electoral “grand co- the simple logo bearing the again helped it maintain its alition” with the Socialists and party initials and the slogan “A lead ahead of the vote with Ciudadanos, with himself as Favor,” (In Favor), reflects 29%, according to a poll pub- prime minister. their choice of an austere cam- lished last weekend by the There is widespread senti- paign, not an effort to deflect Metroscopia agency. ment among voters that Mr. attention from Mr. Rajoy, Running next with 26% is an Rajoy is expendable. whose image has been ham- alliance between far left par- The Metroscopia polling mered by high unemployment ties Podemos and United Left. agency found that some 74% of and corruption scandals. The establishment Socialist voters nationally—and 57% of Still, his low profile is re- Party’s fall to third place, with those favoring the Popular vealing in an election whose 20.5%, has been a jolt in a sys- Party itself—said they would

main question isn’t whether tem in which the Socialists and ISMEAL HERRERO/EUROPEAN PRESSPHOTOsupport AGENCY dumping Mr. Rajoy if his party will obtain the most Popular Party have alternated Acting Prime Minister Rajoy campaigned on Wednesday in La Puebla de Montalban, near Madrid. it were the only way to end votes Sunday, but whether Mr. power for 40 years. In the rear Spain’s months adrift without Rajoy will be able to form a is the centrist Ciudadanos tries. Spain’s gross domestic sive party financing scandal. economic instability. a government. government with opposition party with 14.5%. product is set to expand by Mr. Rajoy has said he had no The alliance, dubbed Unidos One reason is that voters leaders who consider him Mr. Rajoy has campaigned more than 2.5% this year. Un- involvement. Podemos, or United We Can, have no appetite for another anathema. as a steady hand who pulled employment has declined to One thing Mr. Rajoy has go- has vaulted ahead of the 137- election, said Carlos Flores Ju- In December, the Popular Spain’s economy from the 21% from about 27% in 2013. ing for him is the rise of the year-old Socialist Party thanks berías, a legal and political an- Party outpolled three other brink of collapse in 2012 to But critics say Mr. Rajoy has far left, which has awakened to its message of change and alyst at the University of Va- major parties, but politicians make it the fastest-growing tolerated corruption within the his conservative base by high- its youthful candidates who lencia. “A third round would spent the next five months an- among major eurozone coun- Popular Party, including a mas- lighting fears of political and are savvy in social-media, said be unthinkable,” he said. Colombia, Rebels Agree on Cease-Fire

BY JUAN FORERO mountains of Tolima province. day of war means the end of in our history as a nation.” “Wars have costs, and they the horrible night of violence Details of the agreement BOGOTA, Colombia—Guer- cost a lot,” Mr. Santos said in that we’ve lived through over were to be announced Thurs- rilla commanders and Presi- an event on Tuesday, talking so many decades.” day in an event in Havana to dent Juan Manuel Santos’s about the end of the conflict He said with peace on the be attended by United Nations government announced here. “Wars are always more horizon, people would soon be General Secretary Ban Ki- Wednesday they had reached costly than peace.” “sowing the seeds for a new Moon and the leaders of sev- an agreement on a definitive A top rebel negotiator, Luis day full of hope for genera- eral Latin American countries, cease-fire that would end hos- Antonio Losada, better known tions of Colombians who will including Cuba, Chile and Ven- tilities in one of the world’s by the nom de guerre Carlos remember this as something ezuela, all of which helped oldest conflicts. Antonio Lozada, said the “last that should never be repeated shepherd talks between Co- The two sides, which have lombian government negotia- been negotiating in Cuba since tors and the FARC. The U.S. TrusTednewsandinsighTs November 2012, said in a delegation will be led by diplo- on The go. statement that they had also Brazil Speaker Faces More Charges mat Bernie Aronson, who has agreed to the disarmament of SÃO PAULO—Brazil’s Su- Mr. Cunha is accused of ac- made more than 20 trips to wsJaPPForos. 7,000 guerrillas fighters and a preme Court agreed to add cepting kickbacks in connection Havana to serve as a mediator security plan to protect demo- more criminal charges to those with Petrobras’s 2011 purchase between the two sides. bilized rebels, who have long already leveled at suspended of a petroleum explora- The agreement comes at a TheWSJappdeliversalltheworld-classreportingyouneedtostay feared being targeted by re- House Speaker Eduardo Cunha tion block in the West African difficult time for Mr. Santos, a ahead.Fromtoday’spapertothelatestnews,theJournalcomesto gional warlords upon laying in connection with a sprawl- country of Benin for $34.5 mil- former columnist and econo- life with our enhanced features and visual storytelling, including a down their weapons. ing corruption investigation lion. He denies wrongdoing. mist who won reelection in year’s subscription to Evernote Premium*—your ultimate People familiar with the centered on state oil company Separately, Brazil’s federal 2014 on a pledge of bringing productivity tool. talks say the agreement, while Petróleo Brasileiro SA. government said late Tuesday peace but has lost public sup- not a final peace accord, The court ruled on Wednes- it would bail out the state of port as the talks dragged on. downLoadnow means the two sides have day there is sufficient evidence Rio de Janeiro with 2.9 billion Once a final peace accord is agreed to end a conflict that to try Mr. Cunha for allegedly reais ($849 million) as it strug- signed—expected in weeks— began in 1964 when the Revo- taking more than 5 million Bra- gles with a fiscal crisis less he will have to marshal the lutionary Armed Forces of Co- zilian reais ($1.5 million) in than two months before the backing of Colombians, who ©2015 Dow Jones & Co., Inc. All rights reserved. 2DJ2452 lombia, or FARC, was founded bribes from a lobbyist and hid- Olympic Games. will vote on whether they sup- as a peasant movement in the ing it in Swiss bank accounts. —Luciana Magalhaes port the deal as negotiated. For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com A8 | Thursday, June 23, 2016 THE WALL STREET JOURNAL. FROM PAGE ONE

portant fentanyl precursors DRUGS such as NPP aren’t controlled in China and can be easily bought and sold on the market, accord- ContinuedfromPageOne ing to Chinese law and Western overdose deaths. In April, Prince officials and Chinese executives died of a fentanyl overdose; it familiar with the matter. Like- isn’t known if he had a prescrip- wise, there are no U.N. convention. tions that regulate or ban trade The cargo seized by the Chi- in the chemical ingredients used nese last year was destined for to make fentanyl. Mexico, where U.S. officials say cartels repackage the drug and smuggle it into the U.S. Some Don’t ask Mexican traffickers have also Kinbester’s owner, Wu Jinjun, ordered chemical ingredients said in an interview the com- from China and used them to pany doesn’t produce the chem- manufacture fentanyl in their icals itself, but rather procures own clandestine labs for export them from others on behalf of to the U.S. Documents from a clients. He said he doesn’t know case resulting in a guilty plea in why people buy products such federal court in Illinois last year as NPP, adding that his company show that one Mexican lab or- usually avoids selling precursor dered fentanyl ingredients from chemicals that require special a Chinese company in the government clearances. southern port city of Xiamen. “We never ask our clients of Fentanyl and its analogs are their purposes for buying the also being purchased online by products,” he said. small-time traffickers in the U.S. Several chemists and U.S. gov- and Canada, law-enforcement ernment officials say they are officials say. Alleged sellers have aware of only one use for NPP. “If recently been charged in Texas, you’re buying the NPP, it would Connecticut and North Dakota. be anticipated you’re making fen-

Whether the drug or its REUTERS; DEA (PILL) tanyl,” said Brian Escamilla, a fo- building blocks travel through U.S. officials say the vast size of China's chemical industry and lax regulation make it difficult to control fentanyl production. rensic chemist with NES Inc. in Mexico or directly to the U.S. or Folsom, Calif., who trains law-en- Canada, the “primary source” is Party in particular is mindful of The DEA report warns in forcement officers how to deal China, according to the internal widespread opium addiction in particular about a flood of coun- Criminal Chemistry with clandestine drug labs. DEA briefing. China in the 19th century, fueled terfeit pills hitting the U.S., Trafﬁckers manufacturing fentanyl often purchase the key ingredient Regarding NPP sales in Mex- by trade from British colonies which resemble legal medica- from China, which doesn’t regulate its sale. Here's how the chemical ico, Mr. Wu said a Mexican that culminated in the Opium tions but actually contain fenta- building blocks become a highly proﬁtable street drug. buyer contacted Kinbester via Pill presses Wars and the weakening of the nyl. Often, black-market buyers email in late 2005. Eventually China’s sprawling chemicals Qing Dynasty. Fentanyl, by con- of these drugs aren’t aware they The key ingredient is NPP, Kinbester sold 10 kilograms of industry has helped foster this trast, hasn’t gained a significant are getting fentanyl, law-en- 25 grams of which can be NPP to the client, he said, add- booming trade. So has spotty foothold among Chinese addicts, forcement officials say. bought from China for ing that the transaction was a regulation in China and be- meaning authorities may have This spring, counterfeit pills about $87* one-off, and that most of Kin- yond. While U.S. law limits and less incentive to control the il- containing fentanyl that looked bester’s overseas clients were in monitors trade in key ingredi- licit trade to the West, accord- like prescription hydrocodone Japan or the U.S. ents used to make fentanyl, the ing to U.S. officials. were linked to a cluster of 53 NPP can be combined with After law enforcement shut chemicals are unregulated in During a meeting about nar- overdoses that killed 13 people about $720 of other down Mr. Valdez-Torres’s lab, China or by United Nations con- cotics at United Nations head- in Northern California. Early chemicals† to produce the U.S. began regulating NPP ventions that police the global quarters in New York this this year, fentanyl-laced coun- fentanyl. under the Controlled Substances drug trade. U.S. law requires spring, one Chinese official em- terfeits made to resemble Xa- Act. The DEA made NPP a “list I that any import or export of pill phasized the need for other nax, the antianxiety medication, chemical” under the act, which presses be for “legitimate uses” countries to curb demand. Liu killed three people in Pinellas requires any U.S. entity manu- and reported to the DEA, but Yuejin, deputy commissioner of County, Fla., and were “strongly facturing, distributing, import- China and Canada’s federal gov- China’s National Narcotics Con- suspected” of causing six addi- ing or exporting the chemical to ernment don’t regulate their trol Commission and vice-minis- tional deaths, according to the register with the DEA and re- trade. These gaps allow some ter for public security, said na- county sheriff’s office. The resulting 25 grams of …and are equivalent to up to port specific transactions. The traffickers in the Americas eas- tions that consume illicit Pill presses from China, fentanyl cost about $810 to $800,000 of pills on the black agency also started regulating ier access to materials that help narcotics are “not justified in meanwhile, are cropping up all produce… market. ANPP, another chemical used to them set up their own clandes- requiring only drug-producing over the U.S. Chinese shippers *Average current price from Chinese suppliers †Prices from U.S. suppliers make fentanyl. tine labs. countries to counter the manu- often label them as other goods Sources: NES Inc.; Drug Enforcement Administration; The regulation had no effect Canada’s federal health de- facture of drugs; they must also or break them into pieces to try Calgary Police THE WALL STREET JOURNAL. on China, drug-trafficking ex- partment says it is now “ac- address the consumption mar- to evade U.S. regulation, accord- perts say. Mexico does regulate tively looking into the issue of ket,” according to a U.N. sum- ing to Rusty Payne, a DEA press was labeled as a hole tional mail-sorting center in fentanyl production and the im- pill presses as part of a compre- mary of the meeting. spokesman. puncher but added some of the New York subsequently identi- port of fentanyl precursors, but hensive approach” to combat Opioid addiction in the U.S. This spring, federal agents in equipment it sells has multiple fied two parcels from China that officials there say their work is opioid abuse. has reached what public-health Memphis seized multiple ship- uses. were addressed to a suspected complicated by false labeling of China has long prohibited the officials call crisis levels, ments from China of fentanyl The statement said Chinese relative of one defendant, ac- cargo and constantly evolving nonmedical sale of fentanyl it- spurred by widespread prescrib- and two analogs—acetyl fenta- companies increasingly faced cording to a DEA officer’s testi- strategies used by traffickers. self, and last fall, it added sev- ing of legal but addictive pain nyl and butyryl fentanyl—along discrimination in the U.S. and mony in court documents. One Mexican official said the eral analogs including acetyl medications beginning in the with pill presses that were “mis- elsewhere, and exporters Mexico has also become a government was hesitant to fentanyl to a list of controlled 1990s. Many people who be- labeled” as other goods, accord- couldn’t be expected to under- major nexus in the U.S. fentanyl press China too aggressively on narcotics. But U.S. officials say came hooked on pain pills later ing to the internal DEA briefing. stand import restrictions for ev- trade, as traffickers increasingly the fentanyl trade as leaders some Chinese companies con- turned to heroin and other illicit And in March, four men in ery country they sold to. procure the drug or its precur- there seek greater Chinese in- tinue to export illicit batches of opioids. Today, the fentanyl that the Los Angeles area were Huang Huangao, general sors from China, DEA officials vestment to boost the Mexican these narcotics anyway. Others charged with participating in a manager of Zhejiang Wisely Ma- say. Authorities got an early economy. have begun shipping fentanyl ring that sold acetyl fentanyl chinery Co., Ltd., which was pre- glimpse of the problem in 2006, Recent DEA intelligence has analogs that aren’t yet subject and imported chemicals and viously the parent company of when they traced a fentanyl cri- identified fentanyl production to regulation. equipment from China. Agents Capsulcn and remains a supplier sis in Chicago to a clandestine labs in the Mexican states of Hard-hit states are pressing seized pill presses and 13 kilo- of pill presses and other equip- lab near Toluca, Mexico. Colima, Nayarit and Guerrero, Washington to crack down. In a grams of the drug from a clan- ment, said in an interview that One of the lab’s operators, Ri- all located near the country’s letter to the State Department destine lab allegedly run by the he believed it was up to local cardo Valdez-Torres, pleaded Pacific coast, according to a last month, Senator Pat Toomey men, according to the Justice governments to supervise how guilty last year in Illinois federal law-enforcement official. (R., Pa.) urged officials to “apply Pills containing Department, which said the de- the equipment is used. court to a charge of manufactur- United Nations treaties regu- additional pressure” on Beijing fendants pleaded not guilty. One “We have no way of knowing ing fentanyl for unlawful export late global trade of specific to step up regulation of drug fentanyl led to a defendant imported a pill press what the buyers will do when to the U.S. According to court chemicals and narcotics, and variants, chemical ingredients rash of deaths in from Capsulcn International Co. using our equipment,” he said. documents, he told investigators over the years have focused on and pill presses. “It’s extremely Ltd., a company in Zhejiang, a “You can’t blame the knife fac- he bought a key chemical ingre- controlling precursors used to lethal, we know where it’s com- Northern California. Chinese province south of tory if someone uses the knife dient from a Chinese company make such drugs as metham- ing from, and I think we ought Shanghai, according to court to kill a person.” called Kinbester. An email inves- phetamines, heroin, cocaine and to be putting more pressure on documents. To try to evade detection, tigators found at the lab con- LSD. But so far no fentanyl pre- the Chinese to do something makes its way into addicts’ The 235 kilogram pill press some U.S. buyers are using en- tained a price quote for the cursors are listed in those con- about it,” Sen. Toomey said in hands is often not from a pre- arrived at Los Angeles Interna- crypted networks to place orders chemical from Kinbester Co. ventions. Barbara Remberg, sean interview. scription, but from drug dealers. tional Airport with a label de- from China, according to law-en- Ltd., based in the southern Chi- nior technical adviser at the In its reply to the senator, the Because fentanyl is so potent, claring it a “hole puncher,” ac- forcement officials. In Connecti- nese port city of Xiamen. The International Narcotics Control State Department said it is en- it is particularly lethal when cording to court documents. cut last month, nine people were quote offered 30 kilograms of Board, a body in Vienna estab- couraging China to “support an abused at high doses. Its po- Capsulcn’s English-language charged with distributing fenta- the chemical, known by the ac- lished by a U.N. convention to international response to con- tency is part of the reason traf- website says the firm was estab- nyl. Prosecutors alleged that one ronym NPP, for $250 per kilo- help enforce drug-control trea- trolling these dangerous sub- fickers sell it or add it to other lished in 1993 as a “professional defendant ordered the drug over gram. ties, says fentanyl is “something stances and broaden its volun- drugs—the strong high keeps pharmaceutical machinery com- the “darknet”—a restricted cor- Through his lawyer, Mr. Val- we are planning to look into,” tary cooperation until formal buyers coming back for more, pany.” In a written statement, ner of the internet accessible dez-Torres didn’t respond to re- though any action “would take controls can be put in place.” law-enforcement officials say. It Capsulcn said it was unaware of only through encrypted soft- quests for comment. some time.” Inside China, authorities have can also be far more profitable the allegations included in the ware—and that the fentanyl was It wasn’t illegal for Kinbester —Dudley Althaus long sought to control domestic for drug cartels and distributors U.S. court documents. It said it shipped from China. to sell that chemical at the and Kersten Zhang narcotics use. The Communist than heroin. couldn’t determine why the pill Investigators at an interna- time—and still isn’t. Many im- contributed to this article.

tended,” he added. Meanwhile, as credit scores starting to borrow more again. CREDIT In some ways, the improve- Scorecard are rising, defaults are near re- Auto-loan balances surpassed ment is natural as the housing Subprime consumers as a percentage of all those with FICO scores cord lows. Some 0.81% of con- $1 trillion for the first time downturn and financial crisis sumer-loan dollars—including ever this year, according to 30% ContinuedfromPageOne fade further into the past. Af- mortgages, auto loans and gen- credit-reporting firm Experian. the wake of the crisis. An inter a set number of years, fore- eral-purpose credit cards— Credit-card debt is on pace to crease in more-creditworthy closures or missed debt pay- were in default as of May, the hit $1 trillion this year. Stu- borrowers could allow them to ments drop off consumers’ lowest level in records going dent-loan debt continues to increase lending without low- credit reports, helping increase back to 2004, according to the swell. 20 ering standards. Banks are des- their scores and expanding S&P/Experian Consumer Credit That does raise some con- perate for revenue growth their access to financing. This Default Composite Index. This cerns. J.P. Morgan Chase & Co. since the same superlow rates is particularly true for sub- is down from 0.88% a year ago chief James Dimon earlier this helping borrowers are also prime borrowers, or those and a peak of 5.51% in May month called the auto-lending squeezing their own profits. whose FICO credit scores range 2009. Much of that improve- market “a little stretched.” And 10 “It will have a positive im- from 300 to 599 on a scale that ment is due to plummeting Synchrony Financial, the larg- pact on loan volume, loan tops out at 850. mortgage defaults in recent est U.S. retail-store card issuer growth and revenue,” Morgan There are other factors at years. by purchase volume and bal- Whitacre, a consumer client work: The economy has recov- “People are putting those ances, recently increased its underwriting executive at Bank ered since the financial crisis delinquencies further and fur- forecast for credit losses of America Corp., said. Credit- and the unemployment rate, at 0 ther in the rearview mirror,” for the next 12 months. Sepa- card and auto lending would be 4.7%, is less than half of its 2005 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13 ’14 ’15 ’16 said Ethan Dornhelm, senior rately, May marked the fifth the first areas to benefit. late-2009 peak. Wage growth Note: 2005-07 as of October. All other years as of April. director of scores and analytics consecutive month of higher This, in turn, could bolster of around 2% isn’t as high as Source: Fair Isaac THE WALL STREET JOURNAL. at FICO. defaults for general-purpose consumer spending and the the Federal Reserve would like, Borrowers also are manag- credit cards. U.S. economy. As more people but it is still providing consum- which have lessened required score of about 712. That is up ing their debt more responsi- Still, consumer-loan default gain access to credit, consumer ers with more firepower. monthly payments for many sharply from around 545 in bly, with fewer incidences of levels remain at historically spending in the short term Superlow interest rates have borrowers, have helped bring 2012, when she had roughly defaults and collections. Some low levels. In addition, house- should rise, said Rob Martin, played a big role. Monthly this figure down. $50,000 in debt spread be- 11.8% of borrowers were 90 hold balance sheets have gone U.S. economist at Barclays PLC. debt-service payments ac- Many borrowers have also tween 25 to 30 credit cards, days or more past due on at through years of postcrisis re- “It frees people from having to counted for 10.07% of house- been paying down credit-card many of which were maxed least one debt obligation dur- pair. U.S. household debt was spend only the cash they have holds’ disposable personal in- debt, a move that can help in- out. ing the 12 months through equal to 102% of disposable in- on hand,” he said. come at the end of last year, crease their credit scores. Mar- “I have suffered a really long April, down from 13.3% during come at the end of the first “It’s good for the economy down from a peak of 13.21% at tha Souder, an administrative time, and it was a crushing the 12 months through October quarter, Fed data show, down in the sense that there’s a lot the end of 2007, according to assistant in Silver Spring, Md., burden,” she said. Her goal is 2013, according to FICO. markedly from a peak of about less risk in the credit that’s ex- Fed data. Low interest rates, says she currently has a credit to buy a house in coming years. Already, consumers are 130% in late 2007. For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com THE WALL STREET JOURNAL. Thursday, June 23, 2016 | A9 OPINION

A Trump-Ryan Condominium BOOKSHELF |ByMatthewRees How to Win Like “A Condomin- Donald Trump, as he often the party Mr. Trump promised Donald Trump should deliver ium envisions notes, accumulated about 14 to unify. the Trumpian version of the the joint exer- million votes from Republicans The House agenda is the House’s ideas on getting ahead cise of sover- and independents in the presi- Trump Rosetta Stone. It is an to black voters in tough states. Michael Phelps eignty over a dential primaries. off-the-shelf template for get- That’s what Chris Christie did single piece of One hesitates to call this a ting through the next five in New Jersey and Bruce WONDER territory, of- Mexican standoff. Still, no months. It is a way for the Rauner did in Illinois—and LAND ten arising truer axiom exists today than party’s nominee and its what Mitt Romney did not do when two sov- that these two political bas- stressed-out candidates to sing in 2012. The Golden Rules By Daniel ereigns cannot tions, the house of Ryan and from the same hymnal rather There is also a crude case By Bob Bowman Henninger agree on the the family of Trump, must than threaten to stab each for a Trump-Ryan peace agree- (St. Martin’s, 270 pages, $26.99) boundary be- hang together or they will other in the back. ment: It can be the basis for tween two territories which hang separately. fundraising. Big contributors ext week, swimmer Michael Phelps will be competing each controls alone.” Running by himself, as he is aren’t losers. They got on the N in the U.S. Olympic Trials, where he is likely to qualify —UCLA JOURNAL OF INTERNA- now, Mr. Trump is surely These two sovereigns donor A-list because they suc- for Team USA in multiple events. Regardless of how TIONAL LAW headed for the cliff. Landing can hang together or ceeded at something in private he performs there and in the Rio Olympics, his legacy is The Republican presidential atop him in historic ignominy life. Those people won’t give intact: Having won more gold medals than any athlete in campaign is locked up because will be Republican control of they surely are going money without some concrete any sport, and established individual world records 29 two sovereigns cannot agree. Congress. to hang separately. idea of what the Trump game times, he is the most accomplished swimmer in history. Let us first hear from Paul The moment has come for a plan is. How did he do it? Some point to genetics, noting that he Ryan, the sovereign known as Trump-Ryan condominium. Absent a common policy is 6-foot-4 with the torso of someone 6-foot-8 and also the Speaker of the U.S. House The basis for the deal is ly- agenda to normalize fundrais- benefits from long arms, big hands and freakishly flexible of Representatives, on the sub- ing in plain sight. It is the ele- If Donald Trump doesn’t ing, these donors will transfer ankles that turn his size 14 feet into human fins. While ject of voting for what he ments of Mr. Ryan’s House Re- like the House sections on free their money to a parallel Re- these features enable him to slice through the water with called “a very unique nomi- publican policy agenda on the trade, he doesn’t have to sing publican campaign to save the extraordinary speed and efficiency, aquatic achievement is nee”: “The last thing I would economy, taxes, energy, na- those parts. At least 90% of Senate or the House. They will not dictated by body do is tell anybody to do some- tional security, health care the ideas—which many House let Mr. Trump sink, which he type alone. thing that’s contrary to their and, yes, poverty. Republicans worked on, ar- will without party support. Like elite athletes in conscience.” Let us be clear about the gued over and produced— Donald Trump says he’ll every sport, swimmers Standing opposite on the current baseline: Donald would be common ground be- rely on the Republican Na- need a coach who can Republican battlefield is Don- Trump cannot win with what tween them and Mr. Trump. tional Committee’s in-state lead them through the ald J. Trump, presumptive he’s doing now—running on We’ll elaborate on just one campaign machinery. But the mind-numbing routines nominee of the GOP. Of the little money and less policy. element, which could cause operations that those states that are designed to pro- Ryan conscience alliance he Indeed, Mr. Trump’s sub- anxiety among Democrats— and Reince Priebus created for duce superior performance: says: “You know, the Republi- stantive tank has run so low poverty. 2016 are all treading water. the punishing twice-a-day cans, honestly folks, our lead- that as far as I can tell, he It’s long been thought that Volunteers in a Virginia, Ohio, practices, the grueling ers, our leaders have to get hasn’t mentioned “the wall” in any Republican who could pull Florida or Colorado need “dryland” workouts, and the tougher. This is too tough to about a week. The wall helped more than 15% of the black something to talk about on marathon meets (eight condo it alone. But you know get him to this point, but it vote would put his Democratic doorsteps beyond stop Hillary secutive days in the case of what, I think I’m going to be won’t be enough to get him to opponent on thin ice. Black and make America great again. the Olympics). Swimmers forced to. I think I am going to Pennsylvania Avenue. Americans, especially younger The House Republican agenda tend to cycle through coaches be forced to.” He needs more to run on, black Democrats, are disaf- is already printed up, with bul- as they transition from clubs Consider the balance of and he needs it fast, before the fected. The Obama economy let points. to high school, college and forces between these two. Cleveland convention and its has been harder on them than The Trump-Ryan condomin- beyond. Mr. Phelps, by contrast, has Paul Ryan leads a Republi- growing delegate rebellion. on anyone. ium would finally put a GOP had the same coach since he was 11. In 2000, can House delegation that rep- The Ryan House agenda, “A The Ryan-House poverty presidential campaign in for- at age 15, he made the Olympic team, the youngest male resents 247 congressional dis- Better Way,” is complete, pub- proposal is about one idea: upward motion. At least half the swimmer to do so since 1932. His coach, Bob Bowman, was tricts across the U.S. These lished in short and long ver- ward mobility, about not get- country’s voters think that mo- critical to this early progress, Mr. Phelps believes, and to men and women embody mil- sions, and is the explicit con- ting stuck for generations in ment is overdue. the success that followed. Their journey together, guiding lions of individual voters. sensus of the Republican Party, the same welfare dead end. Write to [email protected] Mr. Phelps to the apex of the athletic world, is the story at the heart of Mr. Bowman’s “The Golden Rules: 10 Steps to World-Class Excellence in Your Life and Work.” The 10 steps or rules prescribed by Mr. Bowman are, to Defeating ISIS on the Digital Battlefield be sure, pretty conventional: dream big, think positive, take risks, stay motivated, among others. While he applies By R. James Woolsey real time that identify threats formalized public-private tificial intelligence. Anyone them all to Mr. Phelps, he says that his “system works out And Chip Register before they materialize. partnership with the focus of who has worked in or near of the pool as well as it does in the pool.” In “The Golden In the past decade, we’ve the Manhattan Project and the the U.S. intelligence commu- Rules,” swimming acts as an emblem for the hard work learly, the U.S. and its seen rapid development in the funding of the Mercury and nity can attest to the fact that that all of us must do—even corporate managers. In an C allies can and should breadth and sophistication of Apollo space programs to no one there is interested in aside on developing talent, Mr. Bowman takes aim at meet Islamic State on social media and the “dark study the issue, map out capa- “your damn emails,” to quote performance reviews that reach back six months or a year. the battlefield, whether in web” that enables terrorists bilities, assign responsibilities, Sen. Bernie Sanders. Rather, “If a manager waits that long to tell an employee what Syria or Iraq. But the war with to go undetected. But there guide development and allo- they work 24/7 looking for she did right or wrong,” he writes, “then he should be the ISIS “virtual state”—those have been similar advance- cate resources. The critical threats that could manifest worried about his job.” the terrorist organization in- ments in data collection and success factor here will not be themselves as catastrophi- spires over the internet, like analysis that let us find bad the amount of money spent, cally as they did this month Omar Mateen in Orlando—will actors before they strike. but speed, efficiency and ef- in Orlando. Bowman once cracked the swimmer’s goggles be much harder to fight and The world creates 2.5 quin- fectiveness. The U.S. bombing campaign before a race to see how he would cope. At the will go on long after ISIS tillion bytes of data every day; We also need a public-rela- and eliminating ISIS strong- ground forces are driven into 90% of all data existing on the tions campaign with two pri- holds in Iraq and Syria will 2008 Olympics, he won gold with leaky goggles. mountains and caves. planet is less than 24 months mary objectives: to disrupt hurt the terrorists’ cause sub- This virtual phase of the old. That’s a big area in which and delegitimize the message stantially. But it won’t prevent war is going to require a mas- to hide if you’re a bad actor. of ISIS both in the U.S. and another Orlando. We also have One of Mr. Bowman’s rules is that “adversity will make sive intelligence effort based To find them, we will need in- abroad, and to restore confi- to attack the “virtual state” on you stronger.” To illustrate the point he recounts how he on a deep capability to look telligent computers to chase dence in our civic institutions the digital battlefield and de- once secretly cracked Mr. Phelps’s goggles before a routine into real-time human behavior them through the digital land- so law-abiding citizens can grade its message and capabil- race, to see how he would respond to the challenge. He in the digital world: what peo- scape. have a more productive dis- ity to influence the lone wolf, fared just fine, and it was a useful lesson. Fast forward to ple are saying on social media, Winning this phase of the cussion about the balance be- finance a cell or purchase a the finals of the 200-meter butterfly at the 2008 Olympics. what people are browsing on war, and keeping people safe tween data privacy and secu- weapon of mass destruction. Soon after the start, water began seeping into Mr. Phelps’s the web, where people go, every day as they go about rity in America. goggles, and by the race’s midpoint he could barely see. what they buy, who they chat their lives, will entail winning The U.S. has competent, Mr. Woolsey is chairman of Unflustered, he broke his own world record. “Successful with. Only through a signifi- a technological space race. accountable and well-inten- the Foundation for Defense of people,” writes Mr. Bowman, “are much better when they cant investment in monitoring “Moving at the pace of gov- tioned intelligence capabili- Democracies’ Leadership Coun- regularly have that kind of ‘performance pressure’ placed the digital fingerprints of all ernment” won’t ensure our in- ties. We need to turn them cil and a former director of the on them.” of us will we be able to iden- dividual and collective secu- loose on this threat using the CIA. Mr. Register is CEO of Sa- Another one of Mr. Bowman’s rules is to “live the vision tify patterns of behavior in rity. We need a more latest in data science and ar- pient Consulting. every day” and even to consider accelerating the time frame for reaching a goal. Mr. Phelps practiced seven days a week and missed just five practices in the first 10 years they worked together, enabling him to make the Olympics House Republicans Have a Better Idea four years earlier than expected. With an early January meet looming one year, he and Mr. Bowman worked out on By Karl Rove pendence and personal re- by lame-duck presidents. of dozens of proposals. But Christmas Day, a routine that continued for six years. But sponsibility. Last week, the House GOP each plank of the agenda success is not solely predicated on practicing for the onald Trump has al- Republicans followed the also released a detailed pro- draws on principles congres- mythical 10,000 hours. The quality of practice is as D ready squandered six next day with a robust eco- posal to replace ObamaCare sional Republicans can use to important, and Mr. Bowman describes how every one of weeks by insulting a nomic package, based on the with a package of reforms tell Americans what they will Mr. Phelps’s workouts had a specific purpose—with Mr. “Mexican” judge born in Indi- premise that increasing pros- centered on the patient and do next year, regardless of Bowman doing a lot of yelling at Mr. Phelps along the way. ana, offering conspiracy theo- perity requires expanding free doctor. These include making who is president. The never-ending cycle of practices can lead to ries, and needlessly attacking enterprise and rewarding health insurance portable so If Donald Trump occupies burnout—many elite swimmers avoid the pool once they’ve defeated rivals. His fundrais- hard work. The plan aims to workers can take it from job the Oval Office, Washington’s finished competing. It’s not hard to see why. In swimming, ing is dismal and his staffing relieve the enormous regula- to job, increasing the use of center of gravity will shift to- as in other disciplines, progress is a byproduct of grind, inadequate. All this comes at tory burden on businesses; health savings accounts, per- ward Congress, as industrious not glamour. (As swimmers say, referring to the markings the expense of focused atten- expand affordable, reliable mitting insurance sales across House and Senate Republi- at the bottom of the pool, “We are slaves to the black tion on his Democratic oppo- state lines, allowing small cans drive the legislative line.”) To fulfill another of Mr. Bowman’s rules—“stay nent. Now the presumptive businesses and individuals to agenda. If Hillary Clinton is motivated over the long haul”—he suggests finding a hobby Republican nominee has fired Meanwhile, Trump band together to get lower president, “A Better Way” will that takes the mind and body away from life’s dominant his campaign manager—a wise fires his campaign prices, expanding wellness give Republicans the intellec- task. For Mr. Bowman, it’s thoroughbreds. For Mr. Phelps, decision, but very late. programs and reforming med- tual ammunition to offer a it’s golf. “MP lets distance from his passion recharge his Meanwhile, the Republican manager—a wise ical liability. competing vision that—if passion,” writes Mr. Bowman, “and so should you.” House is methodically laying move but very late. On Friday, Republicans will they retain majorities in Con- There are some curious omissions in “The Golden out a comprehensive agenda add to their agenda a bold and gress—may drive her toward Rules.” In his “take risks” section, Mr. Bowman could have to spread prosperity, protect provocative tax-reform pack- cooperation. described the tinkering that helped Mr. Phelps reach his the nation, uphold the Consti- age aimed at a simpler, flatter, Apart from its merits as Olympic heights: employing a powerful underwater dolphin tution, reform health care, energy; curb lawsuit abuse fairer tax code that encour- policy, “A Better Way” demon- kick (now known as the “fifth stroke”) while staying and—with its presentation and crony capitalism; limit ages jobs and growth while strates that there is much submerged for close to 15 meters after pushing off the Friday of a comprehensive Washington’s micromanage- restoring the competitiveness more to the modern Republi- wall. Similarly, he doesn’t focus on Mr. Phelps’s failure to tax-reform plan—create jobs, ment of community banks and of American companies. can Party than Donald Trump. stay motivated after achieving success. Mr. Phelps has grow paychecks and boost the the financial decisions of or- The way that the tax re- He casts a large, ominous admitted that he lost interest in swimming after his eight- economy. dinary Americans; and block form package was drafted il- shadow, but light can break medal haul in 2008, leading to some titanic struggles with This agenda, dubbed “A government bailouts. lustrates how the whole through the pall. House Re- Mr. Bowman in the run-up to the 2012 London Olympics. Better Way: Our Vision for a On June 9, Republicans is- agenda came together. Build- publicans are working hard to (In 2014 he pleaded guilty to driving under the influence Confident America,” is sued a new national-security ing on the work of his two distinguish themselves and and checked into a treatment facility.) But Mr. Bowman does Speaker Paul Ryan’s brain- plan to protect the homeland, predecessors, Ways and their party’s principles by pre- own up to what he has learned from his own mistakes, such child, but the work of the en- defeat radical Islamic extrem- Means Committee Chairman senting an agenda for the 21st as his 2008 acquisition of the swim club where Mr. Phelps tire Republican conference. ism, and restore confidence Kevin Brady of Texas held six century. trained. In his first year of ownership the club lost Mr. Ryan rolled out its first among our allies and respect meetings with the GOP confer- Their efforts are vital to $350,000. He blames his own a lack of preparation. By plank June 7 with an auda- among our adversaries. ence over a number of months the GOP’s success in Novem- 2014 the club was in the black, he says, if barely. cious reimagining of policies A plan followed to rein in to hash out ideas. A task force ber and may determine Mr. It is safe to say that Mr. Phelps won’t lack for to help Americans rise out of executive overreach and solicited proposals from doz- Trump’s political fortunes. preparation as he heads into this year’s Olympics. If he poverty. The initiative would strengthen accountability and ens of congressmen; reached The shame is that he’s making wins more gold, he can happily follow Mr. Bowman’s final require those on welfare to transparency in Washington. out to job creators, free-mar- their work harder. rule—“celebrate your achievement”—and if he doesn’t, he seek work while providing Republicans would restore ket think tanks and center- can remember his coach’s more sober instruction: always them better access to job constitutional checks on right economists; and can- Mr. Rove helped organize “take something from failure.” That rule in particular is training and assistance. It spending and the budget—in- vassed Republican lawmakers the political-action committee one we non-Olympians might do well to remember too. would reform poverty-fight- cluding by halting illegal ex- to ensure consensus. American Crossroads and is ing programs to help people ecutive-branch spending and If “A Better Way” has a the author of “The Triumph of Mr. Rees is the president of Geonomica, a speechwriting move from dependency on overturning expensive new shortcoming, it’s that it is William McKinley” (Simon & firm in McLean, Va., and a contributing editor at the government to lives of inde- regulations pushed through large and sprawling, consisting Schuster, 2015). swimming magazine SwimSwam. For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com A10 | Thursday, June 23, 2016 THE WALL STREET JOURNAL. OPINION

REVIEW & OUTLOOK LETTERS TO THE EDITOR Elon Musk’s Subsidy Aggregation Why Your IRS Auditor Needs a Machine Gun

lon Musk didn’t become a billionaire customers to subsidize their solar-using and of- I am thrilled that Tom Coburn and sible for our national laboratories and without brass, and this week he floated ten wealthier neighbors. Nevada recently Adam Andrzejewski have rejected the our nuclear-security complex, includ- E NRA’s position that more guns equals ing nuclear-weapons labs, such as Los one of his most outrageous bets: an of- capped its solar-metering handout. Hawaii has more safety (“Why Does the IRS Need Alamos and the nuclear Y-12 National fer by his taxpayer-subsi- also changed its repayment The billionaire tries to Guns?,” op-ed, June 17). I share their Security Complex in Oak Ridge, Tenn. dized Tesla Motors to buy his structure, and others of the concern about the proliferation of These DOE facilities have more than taxpayer-subsidized Solar- integrate his taxpayer- 40 or so states with programs guns in government agencies, and highly classified information; they City. Tesla shareholders and may follow. their conclusion that they will inevita- also house our nation’s inventory of Wall Street analysts are howl- backed business model. SolarCity is bleeding cash, bly lead to senseless destruction and weapons-grade fissile material that is ing, but didn’t they always and the suspicion is that Mr. possibly loss of life. Their concern not deployed in warheads. The scope know they were buying a Musk is engineering what can, logically, only be heightened by of activities at the Y-12 plant is stated business model that depended on the kindness amounts to a bailout by Tesla. The problem is the proliferation of private arsenals in on its website: “Every weapon in the of politicians? that Tesla is also spending its available cash to the hands of untrained individuals, ar- U.S. nuclear stockpile has components The electric-car maker offered to acquire the develop its Model 3, which is billed as an electric senals that have already led to more manufactured, maintained or ulti- solar panel company at a more than 20% pre- car even the masses can afford. Tesla has an un- senseless destruction than those in mately dismantled by Y-12.” the hands of government agencies. Who among us wouldn’t want such mium over SolarCity’s previous share price in usually high debt-to-equity ratio, and it isn’t ob- I stand ready to work with Dr. Co- a facility to be defended with the an all-stock transaction. “Tesla customers can vious how adding another cash-needy company burn and Mr. Andrzejewski to bring most sophisticated security and weap- drive clean cars and they can use our battery will increase value. Caveat shareholder. sensible regulation to gun possession ons available? packs to help consume energy more efficiently,” Tesla’s cars have a devoted following, and its for all Americans wherever they work, RICHARD REDANO the company said in a blog post, “but they still stock has had a brilliant run. But it isn’t clear live, learn, play or pray. Knoxville, Tenn. need access to the most sustainable energy how competitive it would be without taxpayer JIM CODDINGTON source that’s available: the sun.” support: The car maker rakes in money—$168 Eastchester, N.Y. The Posse Comitatus Act of 1878 The ostensible plan is to set up a one-stop million in 2015, up from $3 million in 2011— was enacted to limit the powers of shop so folks buying $85,000 Teslas don’t thanks to the racket known as state zero-emis- The authors show a lack of appreci- the federal government in using fed- have to walk across the street to buy solar sion vehicle credits. Tesla only produces elec- ation for the responsibilities of the eral military personnel to enforce do- Energy Department (DOE) regarding mestic policies within the U.S. None panels, among other “synergies.” Mr. Musk tric cars, so it can sell its extra state-supplied our nuclear-weapons infrastructure. of the agencies being armed and predicted, with his typically modest ambition, credits to auto makers that don’t reach govern- They state: “Other paper-pushing fed- trained are considered military, so that the merger will lead to a Tesla valuation ment fuel-efficiency standards. eral agencies with firearm-and-arrest they can be used to enforce whatever of $1 trillion, or about 34 times what it was Tesla’s $5 billion Nevada battery plant re- authority that have expanded their ar- policies any future administration Wednesday. ceived more than $1 billion in breaks on prop- senals since 2006 include the...En- may deem fit. He may need one of his SpaceX rockets to erty and sales taxes, along with discounts on ergy Department.” These armed agencies are a threat get there. Tesla shares fell 10% Wednesday, or electricity, and even a 30% federal credit for so- While paper is pushed at the DOE, to our liberty. more than the $2.8 billion value of SolarCity, lar generation. Don’t forget President Obama’s much of that paper is highly classi- RON EZELL as investors asked why one money-losing com- $7,500 federal tax credit for every electric-car fied. Additionally, the DOE is respon- Troy, Mich. pany would be better off buying another buyer. That’s right, Uncle Sam pays the likes of money-losing company. SolarCity was once a Leonardo DiCaprio so they can flaunt their darling of the green energy set, but its shares green virtue on the highway. Web Technology Helps NPR Extend Its Reach have fallen more than 50% in the past year as If Mr. Musk can make a market success of “Public Radio’s Existential Crisis” well positioned to do this. its political advantage ebbs. electric cars and lithium-ion batteries, he’ll (Arena, June 17) overstates the is- Our members aren’t just radio The company’s solar-panel leasing business have served customers and earned his billions. sues confronting National Public Ra- stations. They are local not-for- grew rapidly thanks to federal tax credits and But so far Tesla looks more like a classic of the dio as it, like every other major me- profit organizations engaged with state “net metering” programs that underwrite reverse income redistribution of green crony dia organization, navigates the their communities. Their local installation and let companies hawk renewable capitalism, in which middle-class taxpayers digital transition. NPR’s news maga- knowledge is unmatched. Whether power back to the grid at high prices. New subsidize billionaires who make products to zines have continued to reach a you listen on the radio or online, we York’s Governor Andrew Cuomo wrote a tax- satisfy the anti-fossil-fuel indulgences of the growing radio audience that at lat- provide reporting on everything payer check for $750 million for a SolarCity upper classes. That Mr. Musk is reshuffling his est count includes more than 26 from your neighborhood to the plant in 2014. Tesla balance sheet to subsidize his own solar million listeners weekly. At the same other side of the world. time, NPR is at the top of the pod- The massacre at the Pulse night- But net metering has been exposed as a venture is a sign that this may not be a sustain- cast rankings. According to Podtrac, club illustrated how we fulfill our crony-capitalist scheme that forces nonsolar able business model. no other publisher reaches more lis- mission. Within hours we were on teners through podcasts than the air and online nationally with NPR—7.5 million a month. Many are continuous coverage by reporters Obama’s Fracking Comeuppance listening to broadcast as a result of from NPR and our Florida stations. their podcast experience. Our goal was clarity and insight at a nother day, another judicial rebuke to stitution’s separation of powers. Far from having an existential cri- moment of terror. There wasn’t a President Obama’s contempt for the rule Under the BLM argument, Judge Skavdahl sis, we and our member stations shred of existential doubt for our A have a clear vision of our goals and listeners and around the network of law. On Wednesday a federal judge writes, “there would be no limit to the scope or struck down an oil and gas extent of congressionally dele- purpose. Our mission is to compre- about our mission. hensively deliver the highest quality MICHAEL ORESKES drilling rule imposed with no A judge he appointed gated authority BLM has.... of news and entertainment pro- Senior Vice President of News and statutory authority. rebukes an anti-drilling Having explicitly removed the grams to audiences that are increas- Editorial Director, NPR In 2015 the Bureau of Land only source of specific federal ingly underserved by others. We are Washington Management published new regulation as lawless. agency authority over fracking, regulations about well con- it defies common sense for the struction and water manage- BLM to argue that Congress in- ment for hydraulic fracturing, or fracking, that tended to allow it to regulate the same activity Iceland’s Terms Look Like a Default to Many takes place on federal and Indian lands. The BLM under a general statute that says nothing about asserted “broad authority” to control oil and gas hydraulic fracturing.” On June 16 Iceland offered foreign tina’s playbook, blames any unhappi- operations on the basis of laws that were passed Judge Skavdahl also rebukes the administra- bond investors what Matt Wirz in the ness on hedge funds, those whipping in 1920, 1930, 1938, 1976 and 1982 and were al- tive agencies that “increasingly” rely “on Chevron May 28 Journal called “a Hobson’s boys of international finance. Hedge choice: Sell out in June at a below- funds do indeed own some of the Ice- legedly ambiguous. Thus the agency said it de- deference to stretch the outer limits of ‘delegated’ market exchange rate, or have the land bonds, as I clearly stated in my served the benefit of the interpretive doubt that statutory authority by revising and reshaping money they receive when their bonds piece, and so do standard-grade mu- the courts call Chevron deference. legislation.” He reminds that agencies derive mature impounded indefinitely in low- tual funds with minimum investment Abusing Chevron is an Obama specialty. But their “existence, authority and powers from Con- interest bank accounts.” My June 13 requirements as low as $1,000. BLM’s overreach was notably egregious because gress alone,” and that Congress’s “inability or un- op-ed “Northern Europe’s Argentina Again, following the playbook, the Congress passed an energy law in 2005 that willingness to pass a law desired by the executive Imitator” compares this deal—with a minister claims I have hedge funds as stripped the executive branch of fracking juris- branch does not default authority to the execu- discount that now appears to be as “clients”—absolutely untrue. I’m diction and gave that power to the states. tive branch to act independently.” high as 50%, according to an article by someone who, as a journalist, has ad- The BLM argued that Congress’s choice didn’t A President who rewrites inconvenient laws Bloomberg’s Omar Valdimarsson—with vised small investors for 20 years and matter because the bureau wasn’t mentioned by ought to alarm Americans of all political persua- the 14 years of stonewalling by Argen- now sits on the SEC’s Investor Advi- name in the 2005 law. That claim inspired Judge sions. Principled decisions like Judge Skavdahl’s tina in an unsuccessful effort to avoid sory Committee. I’m concerned about meeting its bond obligations. the consequences both to investors Scott Skavdahl of Wyoming—an Obama appoin- help restore the constitutional norms that Mr. In his disingenuous letter of June and to responsible credit issuers of tee—to conduct a remedial seminar in the Con- Obama has done so much to dismantle. 16, Bjarni Benediktsson, Iceland’s min- the contagion that began in Argentina ister of finance and economic affairs, and has continued north to Puerto apparently disagrees that coercing in- Rico and now, incredibly enough, to The For-Profit Kill Zone vestors to take a huge discount is a Iceland. default. Then, as if to prove my point AMBASSADOR JAMES K. GLASSMAN hen it comes to for-profit colleges, student achievement than education inputs (e.g., about how Iceland is following Argen- Washington W the Obama Administration seems to staffing) and documentation. Yet most of the de- be taking its cues from ancient Ro- partment’s complaints concern paperwork. man politics. It isn’t enough to The department dismisses There’s No Need to Pay Off the National Debt kill the schools, you have to Approve a for-profit Acics’s efforts to improve ac- In their June 14 letters (“Maybe fault voters for not understanding kill their accreditor too. Wit- college and you must countability including its es- Our Massive Debt Really Is a Prob- the economics, politics and peculiari- ness the campaign to yank also be destroyed. tablishment of an Ethics Re- lem”), Richard Lamm and Dick Meloy ties of federal finance. The fault is recognition from the Accredit- view Board and employment of assume that the national debt must the failure of leadership. It is time to ing Council for Independent a third-party agency to audit eventually be paid off. That is not tell the American people the truth Colleges and Schools (Acics) college job-placement rates. the view of the president and his Of- about the national debt. We need to for the sin of accrediting colleges on the Obama The DOE also violates the law by specifying the fice of Management and Budget, the have a national conversation about destruction list. metrics that Acics must use to measure student Congressional Budget Office or the the debt, soon after the election, led Last week the Education Department issued achievement such as “data specific to each li- Federal Reserve Board. Nor is it the by a presidential commission on the a 29-page report recommending that Acics’s pe- censing exam.” Accreditors are free to establish view of the experts on Wall Street, in national debt, which would be tition for continued recognition be denied. The their own standards, and at least Acics sets spe- the great universities or liberal and chaired by the secretary of the Trea- conservative think tanks. Yet I be- sury and include the heads of the National Advisory Committee on Institutional cific job-placement and completion rate bench- lieve that most voters would proba- relevant federal agencies, bicameral Quality and Integrity will deliberate Thursday, marks. Most accreditors don’t. bly agree with Messrs. Lamm and and bipartisan congressional leaders and a “senior department official” will issue a As the department noted in a January memo Meloy, based on my communications and private Nobel prizewinners in final verdict. Barring an act of mercy from Secre- entitled “Strengthening Accreditation,” most ac- with voters during 32 years in the economics. tary John King, Acics’s more than 800 colleges crediting agencies struggle with effectively U.S. Treasury as an economist and FRANCIS X. CAVANAUGH will have to find a new accreditor within 18 monitoring student achievement. About three- federal debt manager. We cannot Washington months or lose federal student aid. quarters of community colleges accredited by Like the rest of the anti-for-profit campaign, Western Association of Schools and Colleges this is a political contract hit. The Center for (Wasc) have graduation rates in the bottom third Sometimes ‘Foreign Judges’ Protect Rights American Progress and Senator Elizabeth War- nationally compared to 15% of Acics-accredited ren prepared the way by slamming Acics for ac- colleges. Yet Wasc’s recognition was renewed The diatribe against “foreign negligence. Fortunately, on April 29, judges” by the Brexit campaigner An- 1979, 11 judges on the European crediting colleges subject to government investi- this year. drew Roberts (“Britain and Obama’s Court of Human Rights found the gations or lawsuits. While few have resulted in Speaking of double standards, the depart- ‘Back of the Queue,’” op-ed, June 18) British government in violation of the court judgments, the department wants to de- ment last week also recommended renewing an- misleads American readers. free speech principle of Article 10 of liver the message to other accreditors to follow other accreditor, the Council on Occupation Edu- Had it been left to British law and the Human Rights convention. British orders or prepare to die. cation, for five years. As we’ve reported, a British judges, the hundreds of moth- law was changed by act of Parliament The department puffs up its report with tech- bankruptcy court in 2012 found that the Council ers and their limbless babies poi- in 1982. nical objections. For example: While Acics pro- egged on by a vindictive Education official made soned by thalidomide in 1959-61 SIR HAROLD EVANS vided “documentation that it verifies that a “factually erroneous” statements about for- would have been condemned to lives New York member of the decision-making body fulfills the profit Decker College, which forced the school short, brutish and nasty for the sim- conditions for being designated as a public mem- to close. An administrative law judge reaffirmed ple reason that the archaic British Letters intended for publication should ber...itisnotclear if members of any appeal the finding in March. law of contempt would allow no com- be addressed to: The Editor, 1211 Avenue ment or investigation while the Brit- of the Americas, New York, NY 10036, body sign the form designed for the main deci- So an accreditor can lie and prosper, but if ish courts were “seized” of the mat- or emailed to [email protected]. Please sion-making body” or a form specific “to their you do your job fairly and reaccredit a for-profit, ter, and when seized—after a “Bleak include your city and state. All letters specialized role.” Who writes this stuff? you’re toast. The sheer brazen viciousness of the House” decade—sanctioned only deri- are subject to editing, and unpublished One irony is that the Obama Administration Democratic campaign against for-profits is sory settlements against a corpora- letters can be neither acknowledged nor returned. has been goading accreditors to focus more on something to behold. tion that was still falsely denying For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com THE WALL STREET JOURNAL. Thursday, June 23, 2016 | A11 OPINION Obama Empties Innovative Classrooms Counterfeit Goods Have By Allysia Finley Department and Internal Reve- nue Service “to review the cases he Obama administration’s highlighted in the report to en- No Place relentless campaign against sure these entities comply with for-profit colleges is suc- the law and the requirements T ceeding: More than 180 for tax-exempt status” and to On Alibaba have closed in the past two “coordinate assessment of these years. The Education Department conversions.” projects that 1,400 vocational pro- On Oct. 21, the department re- By Jack Ma grams educating 840,000 students quested copies of the Center for won’t survive its gainful-employment Excellence in Higher Education’s ncreased scrutiny is part of be- rule, which ties federal student aid to correspondence with and reviews I coming a global company. When debt and earnings. by the IRS. Five months later, the Alibaba went public in 2014, I But the administration isn’t con- center received another letter told our customers, employees and tent with shutting down for-profits: from the department, this one investors that what we had earned Now regulators and prosecutors are demanding information about its was trust—in myself, my team, and even going after a businessman who third-party contracts, leases, au- our company’s mission, vision and waved the white flag and converted dited financial statements and values. With that trust comes great his vocational schools into nonprofits. conflict-of-interest policy for responsibility. So when I see reports With this administration, it’s a sin if board members. in the press taking my recent words

you ever tried to make a buck. GETTYIMAGES/ISTOCK The letter included this kicker: about counterfeit goods out of con- In 2012 Carl Barney merged the “These institutions have re- text, I feel compelled to set the re- CollegeAmerica, Stevens-Henager schools outperform local community A department spokesperson says mained for-profit institutions for Ti- cord straight. This is my responsibil- College, Independence University colleges. The graduation rates at that “it may increase that percent- tle IV program purposes, and con- ity to all of our stakeholders. and California College San Diego CollegeAmerica in Denver (43%), age to reflect additional concerns on tinue to be subject to the Gainful What I shared with our investors with the nonprofit Center for Excel- Cheyenne (47%) and Phoenix (55%) a case-by-case basis.” In Mr. Bar- Employment disclosure require- last week was an observation: that lence in Higher Education (CEHE), exceed those at the public Commu- ney’s case, the department “also ments and the requirements to post the dynamics between some brands which promotes reforms in college nity College of Denver (12%), Lara- identified other concerns including specific policies, procedures, and and their manufacturing partners, philanthropy. The 75-year-old Brit- mie County Community College litigation between one of the [Center consumer information” pending an and brands and their customers, are ish immigrant, who had been the (17%) and Phoenix College (22%). for Excellence in Higher Education] agency review of their change to shifting due to economic and techno- A peculiar aspect of the Obama institutions and the Colorado Attor- nonprofit status. This came as a logical developments. Carl Barney thought he was administration’s education obses- ney General’s Office.” So the Educa- shock to Mr. Barney, since he had in- sions is that the White House wants tion Department was penalizing the formed the department of the col- Failing to protect brands is doing a good deed by going to steer more young people to com- colleges for a lawsuit that a judge leges’ conversion in October 2012. munity colleges that often have has found to have little merit. Even the department’s “College akin to thievery—and we nonprofit. The feds still worse student outcomes than com- Mr. Barney soon encountered an- Scorecard” identifies the colleges as have zero tolerance for it. want to kill his schools. peting for-profits. other problem: Banks wouldn’t pro- a private nonprofit. In July 2015, Denver Judge Mi- vide a letter of credit because they On May 11 the Education Depart- chael Mullins denied the attorney appeared worried that they would be ment launched a fresh salvo, warn- general’s motion for preliminary in- targeted by government regulators. ing Mr. Barney that “a review of the First, Chinese manufacturers face for-profit colleges’ sole proprietor, junctive relief, finding that the state In lieu of posting a letter of credit, web pages for some of your institu- declining exports because demand tells me that he wanted to reduce had not “established a reasonable Mr. Barney offered to deposit $43 tions suggests that [the Center for from Western markets is not what it his day-to-day responsibilities and probability of success” for most of million into a government escrow Excellence in Higher Education] is used to be. Every day, I see small channel more resources into educa- its claims. The lawsuit has since account—money from his own not providing the required [gainful businesses in China suffer because tion rather than paying taxes. “I moved to discovery, with a trial pocket. Though the colleges have im- employment] disclosures for its pro- orders from their longtime customers didn’t want to be as involved,” he scheduled for next spring. proved their financial-responsibility grams”—including job placement are half of what they once were. Yet says. “I wanted to put more money Meanwhile, the Obama administra- score, the department continues to rates and median debt upon comple- these businesses have made invest- back into the colleges.” He became tion has opened a fresh line of attack. hold Mr. Barney’s $43 million in es- tion—“and this must be addressed ments in factories, equipment and the chairman of the new group of In January 2015, the Education De- crow. And the schools’ regulatory immediately.” people. They must find new ways to nonprofit colleges. partment notified Mr. Barney that his troubles haven’t stopped. In 2014 the Education Department adapt to this changing environment. As the merger was being com- colleges had failed its “financial re- Last September, Century Founda- alleged regulatory violations by the Second, the internet has given pleted in 2012, Colorado Attorney sponsibility” test, which incorporates tion fellow Robert Shireman—who for-profit Corinthian Colleges and consumers ever-increasing access to General John Suthers, a Republican, dozens of metrics, including equity, championed the gainful-employ- yanked federal student aid. The products without the need for com- began an investigation. In November income and reserves. CEO Eric Juhlin ment rule as Education Department move precipitated a liquidity crisis plex and costly distribution channels. 2014, the AG sued CEHE. According says the colleges scored low because deputy undersecretary—issued a that forced the schools to close. Mr. Manufacturers in China are increas- to the complaint, the colleges duped they took on a large amount of report called “The Covert For- Barney worries that his nonprofit ingly using the internet to tap into students into enrolling with decep- “goodwill” during the 2012 merger. Profit.” The report alleged that Mr. colleges could experience a similar the vast domestic market. Many of tive ads such as one promising to The department demanded an irrevo- Barney and several for-profit oper- fate: “By the time you get to court, these firms have developed their own help them “make more money and cable letter of credit of $43 million— ators had converted their colleges you’re out of business.” online-only brands with quality prod- have a real career.” equal to 30% of the colleges’ federal to nonprofits to dodge regulations ucts for Chinese consumers. The Colorado lawsuit cites poor student-aid disbursement in 2013— and taxes. Seven Democratic sena- Ms. Finley is an editorial writer What I said last week was that graduate outcomes, yet Mr. Barney’s even though the norm is 10%. tors promptly urged the Education for the Journal. these trends may challenge the business model of some established brands. That’s reality. I want to let you know where I How the Red Cross Killed Non-Lethal Weapons stand on this: Counterfeit goods are absolutely unacceptable, and brands By Gary Anderson Corps’ experimentation culminated could then enter the structure and Ironically, human-rights organiza- and their intellectual property must in a series of exercises in 1998-2000 separate the noncombatants from tions like the International Commit- be protected. Alibaba is only inter- e had to destroy the vil- designated “Urban Warrior.” armed fighters. tee of the Red Cross and Human ested in supporting those manufac- ‘W lage to save it.” That Part of that experimentation (in In 1995, led by Gen. Tony Zinni, se- Rights Watch that today decry the turers who innovate and invest in quote from an American which I took part) included the devel- nior Marines persuaded Congress to plight of civilians in Fallujah are the their own brands. We have zero toler- officer during the Vietnam War was opment of more-discrete weapons fund a Joint Non-Lethal Directorate. same groups that argued successfully ance for those who rip off other peo- used to great effect by the antiwar that could take out a room being In the two decades since then, some against deploying advanced non-le- ple’s intellectual property. movement of the 1960s. It comes to used as a sniper’s roost rather than non-lethal weapons have been de- thal weapons like VMADS. It is true, Failing to protect original designs, mind after the recent battle for Ra- raze an entire building. ployed, including warning munitions, as the critics maintained, that in the trademarks and technology is akin to madi in which the Iraqi army and its optical distractors and vehicle-stop- wrong hands such weapons could be thievery, and it is detrimental not associated militias, backed by Ameri- ping equipment. But other revolu- used to suppress peaceful demonstra- only to innovation but also to the in- can air power, virtually leveled the The retaking of Fallujah tionary non-lethal weapons have tions or even be set to kill. We in the tegrity of the marketplace. We do not city to liberate it from Islamic State, has become another never been deployed. military tried on a number of occa- and will never condone any act of or ISIS. Ramadi was held by fewer One such weapon is the Vehicle- sions to work with the human-rights stealing. than 300 ISIS fighters, but retaking it bloody urban battle. It Mounted Active Denial System, which community to develop law-of-war Alibaba is 100% committed to involved a massive assault by thou- didn’t have to be this way. uses directed energy—a focused protocols that would allow for re- leading the fight against global coun- sands of Iraqi security forces. beam of millimeter waves—to make sponsible use of such weapons and to terfeiting, online and offline. We have Now a bloody battle to retake Fal- targeted individuals feel that they are develop controls that would prevent devoted an unparalleled level of tech- lujah from ISIS is under way, and the burning up, without actually doing them from falling into the wrong nology, capital and people toward our tens of thousands of men, women and This experimentation paid off well harm. The effect ends when the tar- hands. anticounterfeiting work. Our robust children unlucky enough to be after the 2003 U.S. invasion of Iraq get flees or the weapon is turned off. Regrettably, the human-rights data processing and analytics enable trapped are being used as human during the first battles for Fallujah I know this because in 2005 I led the groups were intransigent, and most real-time scanning of over 10 million shields. Meanwhile, those lucky and Ramadi. These were hard battles, team that field tested VMADS. I’ve of us in the military concluded that new product listings a day, looking at enough to escape are overwhelming but civilian and U.S. casualties were a probably been zapped by it more we shouldn’t spend scarce dollars on product attributes such as trademark, aid agencies. There are better ways to fraction of those in past urban com- than any other human. It is exactly systems that would never be used. pricing, geolocation, buyer and seller conduct urban combat than to flatten bat. Some of the new techniques in- the kind of non-lethal weapon that Now, with Iraqi forces ill-trained identity, consumer feedback and entire city blocks, but they won’t be cluded using small, unmanned vehi- could have been deployed to great ef- for urban warfare and lacking non-le- more. For every one takedown re- employed in Iraq. cles to disarm improvised explosive fect in the urban battlefields of Mog- thal weapons that could have greatly quest we receive from a brand, we Those of us who fought in Mogadi- devices, and dispatching unmanned adishu in 1993 and Iraq today. aided their efforts, the retaking of have proactively removed eight. shu, Somalia, in 1993 believed that aircraft (commonly known as drones) We had hoped to use the same Fallujah has resulted in another Let’s not forget that this is a long- the difficulties faced there would sig- to see what was happening on the technology to develop even better bloody urban battle and humanitar- term crusade. There are no easy or nal the end of such blunt-force urban next block. weapons that could clear buildings ian crisis. Sadly, the coming battles short-term fixes, because it is a battle combat (the movie “Black Hawk But the U.S. military’s urban-fight- non-lethally by causing near-immedi- for the far larger city of Mosul and against human greed. Down” is a reasonable depiction of ing capabilities in Iraq could have ate temporary heat prostration to ev- the ISIS capital of Raqqa, could be At Alibaba, we have built the the challenges), and that more effec- been even better, with the lives of eryone inside. Unfortunately, even the even worse. world’s largest platform that enables tive and technologically sophisticated more troops and civilians saved, if not existing VMADs weapons will proba- more than 10 million merchants and methods had to be on the horizon. for political considerations that inter- bly never be used and more-capable Mr. Anderson is a retired Marine brands to directly engage with hun- After Somalia, the U.S. Marine vened. weapons never developed. Why? Be- Corps colonel who was chief of staff dreds of millions of consumers. Corps began experimenting to im- During our experimentation in the cause of complaints by human-rights of the Marine Corps Warfighting Lab- Brands embrace our platform because prove urban-combat capabilities. 1990s, many of us in the U.S. military advocates, who seem to think that it’s oratory during the Urban Warrior ex- consumers love our marketplaces. Maj. Gen. Mike Myatt had developed came to believe that the best alterna- better to be dead than discomfited. periments from 1998-2000. We work hard every day to protect a compelling brief titled “Chaos in tive to destroying cities and their pop- our stakeholders and ensure that the Littorals” that persuaded the se- ulations in order to “save” them was consumers are not hurt by shoddy nior Marine Corps leadership that to develop non-lethal weapons capa- fake products. We are committed to coastal megacities would be battle- ble of temporarily incapacitating ev- Notable & Quotable fighting the root causes of infringe- grounds in the future. The Marine eryone inside a building. Our troops ment and to protecting creators and From a debate June 22, 1787, at the of offices men most capable of exe- innovators. And we not only comply U.S. constitutional convention, on cuting the functions of them. He with laws and regulations but also whether members of Congress ought thought also it would be wrong to fix actively assist law enforcement in PUBLISHED SINCE 1889 BY DOW JONES & COMPANY be paid by the states they represent or the compensations by the constitu- cracking down on counterfeiters. by the federal government, as de- tions, because we could not venture We do all of this because we care Rupert Murdoch Robert Thomson Executive Chairman, News Corp Chief Executive Officer, News Corp scribed in James Madison’s notes: to make it as liberal as it ought to be about the sustainability of our busi- Gerard Baker William Lewis without exciting an enmity agst. the ness. I’ve been around long enough to Editor in Chief Chief Executive Officer and Publisher Mr. ELSEWORTH, moved to substi- whole plan. . . . know that authenticity is the only tute payment by the States out of Rebecca Blumenstein, Matthew J. Murray DOW JONES MANAGEMENT: Mr. HAMILTON apprehended in- thing that sustains one’s character Deputy Editors in Chief Ashley Huston, Chief Communications Officer; their own Treasurys: observing that conveniency from fixing the wages. and maintains trust in the long run. DEPUTY MANAGING EDITORS: Paul Meller, Chief Technology Officer; the manners of different States were He was strenuous agst. making the I’m interested in telling the truth Michael W. Miller, Senior Deputy; Mark Musgrave, Chief People Officer; very different in the Stile of living and Edward Roussel, Chief Innovation Officer; National Council dependent on the rather than glossing over difficult Thorold Barker, Europe; Paul Beckett, Asia; in the profits accruing from the exer- Christine Glancey, Operations; Jennifer J. Hicks, Anna Sedgley, Chief Financial Officer; Legislative rewards of the States. subjects. Digital; Neal Lipschutz, Standards; Alex Martin, Katie Vanneck-Smith, Chief Customer Officer cise of like talents. What would be Those who pay are the masters of Alibaba always stands ready to News; Ann Podd, Initiatives; Andrew Regal, Video; OPERATING EXECUTIVES: deemed therefore a reasonable com- those who are paid. Payment by the partner with brands. As such, I see it Matthew Rose, Enterprise; Stephen Wisnefski, pensation in some States, in others Professional News; Jessica Yu, Visuals Jason P. Conti, General Counsel; States would be unequal as the dis- as my responsibility to tell them that Nancy McNeill, Corporate Sales; would be very unpopular... tant States would have to pay for the the world is changing. The internet Paul A. Gigot, Editor of the Editorial Page; Steve Grycuk, Customer Service; Daniel Henninger, Deputy Editor, Editorial Page Jonathan Wright, International; Mr. WILLIAMSON favored the idea. same term of attendance and more has enabled consumers to assert WALL STREET JOURNAL MANAGEMENT: DJ Media Group: He reminded the House of the pros- days in travelling to & from the seat their preferences more than ever, and Trevor Fellows, Head of Global Sales; Almar Latour, Publisher; Kenneth Breen, pect of new States to the Westward. oftheGovt.... thus businesses must innovate. The Chris Collins, Advertising; Commercial; Edwin A. Finn, Jr., Barron’s; They would be poor—would pay little Suzi Watford, Marketing and Circulation; Professional Information Business: Mr. MADISON, thought the mem- good news is that we have an oppor- Joseph B. Vincent, Operations; Christopher Lloyd, Head; into the common Treasury... bers of the Legisl. too much inter- tunity to work together with brands Larry L. Hoffman, Production Ingrid Verschuren, Deputy Head Mr. GHORUM, wished not to refer ested to ascertain their own compen- to get ahead of these new trends.

EDITORIAL AND CORPORATE HEADQUARTERS: the matter to the State Legislatures sation. It wd. be indecent to put their 1211 Avenue of the Americas, New York, N.Y., 10036 who were always paring down sala- hands into the public purse for the Mr. Ma is the founder and execu- Telephone 1-800-DOWJONES ries in such a manner as to keep out sake of their own pockets. tive chairman of Alibaba Group. For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com A12 | Thursday, June 23, 2016 ****** THE WALL STREET JOURNAL. WORLD NEWS U.S. Struggles to Replace Afghan Aircraft

Ban on buying from eventually going to get down to zero,” said U.S. Air Force Russia makes it hard Brig. Gen. Dave Hicks, an ad- for Pentagon to bolster viser to the Afghan air force. Of the surviving Mi-17s, Kabul’shelicopter fleet only half are operational, with the rest grounded be- BY MICHAEL M. PHILLIPS cause of battle damage, age or unfilled maintenance re- KABUL—American sanc- quirements. In the U.S. mili- tions intended to punish Rus- tary, some 75% of a helicopter sia for its intervention in fleet is operational at any Ukraine are making it diffi- given time, according to U.S. cult for the U.S. military to officers. rebuild Afghanistan’s hard-hit The average Afghan army air force. corps—a unit of some 16,000 President Barack Obama’s to 20,000 soldiers—has just 2014 order banning the U.S. three transport helicopters at from doing business with its disposal, each capable of Moscow’s arms industry has carrying two-dozen soldiers left the Pentagon unable to and three crewmen. replace Afghanistan’s Rus- The U.S. also previously sian-built Mi-17 transport he- bought 30 Mi-17s for the elite licopters, which are being lost Afghan Special Mission Wing. at a rapid clip to enemy fire MICHAEL PHILLIPS/THE WALL STREET JOURNAL While waiting for a Penta- and mechanical failures. An Afghan Mi-17 transport helicopter undergoing repairs in Kabul in 2015. The helicopters are Russian-built. gon decision on purchasing With Taliban militants new helicopters, the U.S.-led gaining ground, U.S. command not lost on anyone in further information to pro- The 7,000-man Afghan air pilots, and such expertise is coalition has arranged repair manders in Afghanistan have the Department of Defense. I vide at this time,” the spokes- force also has Brazilian Super rare in Afghanistan. contracts in Bulgaria, Slova- pressed the Pentagon in re- think the urgency is clear.” man said. Tucano planes and American The helicopter fleet has kia and United Arab Emirates cent months to come up with Afghanistan can’t afford to The Mi-17s fill a critical Cayuse Warrior attack heli- suffered high attrition. The to overhaul the aging Mi-17s. a solution, but the Defense buy its own aircraft; the heli- role in Kabul’s fight against copters that are capable of Afghan air force had 56 Australia has put up the Department hasn’t settled on copters cost about $19 million the Taliban and other insur- striking insurgents on the Mi-17s a year ago, most pur- funding. The Czech Republic one. each, and are only available gent groups. ground. The Afghans have be- chased by the Pentagon, prior will repair battle-damaged Options could include from Russia. Afghanistan is a mountain- come increasingly adept at to the sanctions; now it has aircraft. waiving sanctions to allow Gen. Taliaferro is hoping to ous country whose poor roads using them to assist foot sol- 47, a 16% drop. Those contractors use Rus- purchases of Russian helicop- get a ruling from Washington are often seeded with impro- diers. One helicopter exploded in sian parts and secure airwor- ters or revamping the Afghan in the coming weeks, but he vised mines. Government “Having that air power is a midair, victim of a suspected thiness certification from the air force to operate transport declined to say which option troops are more likely to significant advantage to the grenade accident on board. Aviation Engineering Depart- aircraft made in the West. he had recommended. catch nimble insurgents if Afghan forces that their ad- Another was destroyed when ment of the Russian Ministry “There’s already significant A Defense Department they arrive by helicopter than versaries don’t have,” said another helicopter acciden- of Defense, with a sanctions demand and significant pres- spokesman declined to say by Humvee. Gen. Taliaferro. tally opened fire on the tar- waiver issued by the State sure on the existing fleet,” which options were under In 2014 the Mi-17s flew But alongside that success mac. Four were shot down by Department. said Maj. Gen. Jeff Taliaferro, consideration. nearly 4,500 missions; last have come serious problems. insurgents. But the State Department senior allied air commander “Due to the fact this is still year they flew more than Aircraft require sophisticated “If you sustain that level of has issued no such waiver for in Afghanistan. “That’s a de- being worked, we have no 16,000. mechanics and highly-trained attrition, obviously you’re the purchase of new aircraft. North Korea Test Launch Alarms Neighbors World Watch A North Korean missile to someday strike more-dis- travel in the direction of launch on Wednesday reached tant targets, including U.S. Japan, although neither trav- a significant altitude and dis- military facilities in Guam or eled far enough to threaten tance, ending a string of fail- Okinawa, Japan. Japan, which supports sanc- ures and heightening concerns The White House and State tions against Pyongyang for the country is making prog- Department said the launch its nuclear-weapons program. NIGERIA ress toward building a weapon represented another violation “The North Koreans are that can threaten the U.S. and of international prohibitions making progress toward a Seven Kidnapped its allies. against such testing by North workable Musudan,” said Jef- Near Mine Operation Korea. Officials said they frey Lewis, an arms-control The Australian government By Alastair Gale would redouble efforts at the expert at the California-based said three of its citizens were in Seoul and Gordon United Nations and in appeals Middlebury Institute of Inter- among seven workers kidnapped Lubold in Washington to Pyongyang’s backers such national Studies. “If we do in an ambush on a mine convoy as Russia and China to stem nothing, they will move on to in southeast Nigeria.

South Korea’s military said the missile advances. North XINHUA/ZUMA PRESS a missile, using the same tech- The Nigerian driver of the North Korea fired a Musudan- Korea is banned by U.N. reso- A Seoul resident watched a news broadcast at a train station nology, that can reach the convoy was killed during the at- type midrange missile from its lutions from testing ballistic- about North Korea’s latest missile-launch test on Wednesday. U.S.,” said Mr. Lewis, who ad- tack, carried out by as many as east coast that traveled about missile technology. vocates trying to reach a test 30 gunmen, according to the Ni- 250 miles before it disappeared The Musudan, which has an have been monitoring closely our territory with missiles,” moratorium with North Korea gerian police. The workers, who from tracking devices while estimated maximum range of for flight tests by North Korea. said Japanese Defense Minis- on its missile program. included a New Zealand citizen over the Sea of Japan. The mis- 1,800 to 2,500 miles, was A larger missile, known as the ter Gen Nakatani. “This repre- North Korea has made of- and two Nigerians, were employ- sile reached an altitude esti- tested by North Korea for the KN-08, has been displayed by sents a grave threat to the se- fers to suspend its nuclear and ees of the Australia-based mining mated at more than 600 miles, first time this year. But in five Pyongyang, but not tested. Its curity of our country.” missile program in return for company Macmahon Holdings. entering space and then re-en- previous launches, including estimated range of several A day earlier, Japan put its a suspension of joint military Australian Prime Minister tering the atmosphere, a U.S. one earlier Wednesday, it failed thousand miles would include missile-defense systems on drills by the U.S. and South Malcolm Turnbull said the gov- defense official said. to take flight or appeared to parts of the continental U.S. alert after detecting the possi- Korea. However, Washington ernment wasn’t aware of the Combining altitude and dis- travel only a short distance. The test alarmed Japan. “It ble launch from North Korea. and Seoul insist Pyongyang identity of the kidnappers. tance, the launch demon- The Musudan is one of two appears [North Korea] is in- Missiles fired from North Ko- must make the first move and Violent attacks and kidnap- strated a capability necessary types of missile that outsiders creasing its ability to target rea’s east coast generally roll back its nuclear program. pings aren’t uncommon in Nigeria, which is also the base of operations for Boko Haram—the West African affiliate of Islamic State. Pope Risks New Rift With Turkey on Armenia —Rob Taylor UNITED NATIONS BY FRANCIS X. ROCCA continued shelling. The presidents of the two Ex-U.N. Official Facing Pope Francis travels Friday countries met with Russian Bribery Charges Dies for a three-day trip to Armenia, President Vladimir Putin on Former U.N. General Assembly where he will visit the memorial Monday in St. Petersburg, the President John Ashe of the twin- to those who died in the 1915 Kremlin said. In a joint state- island Caribbean nation of Anti- massacre of Armenians by ment, they said they had agreed gua and Barbuda died Wednes- Turks, potentially straining rela- to increase the presence of in- dayinNewYorkstateashewas tions between the Vatican and ternational observers in the facing bribery charges. He was 61. Ankara again. conflict zone, and that they Mr. Ashe died at his home in The trip also comes just after were satisfied with the imple- Dobbs Ferry, according to Sgt. a major outbreak of violence in mentation of the cease-fire. Vincent Ingani, of the Dobbs the turbulent Caucasus region, The pope will visit Azerbai- Ferry Police Department. He when ethnic Armenian separat- jan and neighboring Georgia gave no other details. ists fought Azerbaijani forces this fall, Sept. 30-Oct. 2. The Mr. Ashe was accused by U.S. for four days in April over the Vatican is officially presenting federal authorities of turning his breakaway region of Nagorno- the two trips as parts of a sin- largely ceremonial position, Karabakh. gle trip. which he held from September The main question when Pope Francis’ visit will be an 2013 to September 2014, into a Pope Francis goes to the Tsitser- opportunity to strengthen ties “platform for profit” by accepting nakaberd Memorial Complex in with the Armenian Apostolic more than $1 million in bribes. the Armenian capital of Yerevan Church, one of the Oriental Or- The alleged conspiracy involves on Saturday is whether he will thodox Churches. It is separate six others, including a Chinese echo his description last year of from the far larger group of real-estate mogul, two diplomats the mass killings by Ottoman Eastern Orthodox Churches, in- and a humanitarian-organization forces as the “first genocide of cluding Russia, who are in com- officer. —Associated Press the 20th century.” munion with the Ecumenical Pa-

Turkey responded to the ANDREAS SOLARO/AFP/GETTY IMAGES triarch of Constantinople. GREECE 2015 statement, made during a Pope Francis, left, greeted Supreme Patriarch and Catholicos of All Armenians, Karekin II, in 2015. Catholics number only about commemorative Mass in St. Pe- 280,000 in Armenia, a country ECB Lifts Restriction ter’s Basilica, by immediately re- with the Holocaust and the State militants in Syria and Iraq. the two leaders in Havana gave of almost 3 million. On Government Debt calling its ambassador to the 1932-33 man-made famine in However, he recently rejected prominent mention to the per- Before leaving on Sunday, The European Central Bank Vatican to Ankara for consulta- Ukraine and other parts of the the term genocide for the plight secution of Christians “in many Pope Francis is to pray at the said it would start accepting tions. It took 10 months before Soviet Union. of Christians in the Middle East countries of the Middle East and Khor Virap monastery, near the junk-rated Greek government the ambassador returned. Turk- Pope Francis also linked the in favor of the religious term North Africa.” border with Turkey, within sight debt as collateral for the ECB’s ish President Recep Tayyip Er- 1915 killings to latter-day attacks martyrdom. Tensions between Armenia of Mount Ararat. regular lending to banks, reopen- dogan condemned the pope’s elsewhere on “our defenseless In March, U.S. Secretary of and another neighbor—Azerbai- He will be only about 15 mining a cheap funding channel that statement and warned him “not brothers and sisters who, on ac- State John Kerry accused Is- jan—will also hang over the utes from the Turkish border, could help breathe life into repeat this mistake.” count of their faith in Christ or lamic State of committing geno- visit. The two former Soviet re- which is officially closed, though Greece’s struggling economy. St. John Paul II used the their ethnic origin, are publicly cide against minorities including publics have fought over the Na- Armenians frequently cross to The decision to open a fund- word genocide in the Armenian and ruthlessly put to death—de- Yazidis and Christians. gorno-Karabakh region, an eth- work in Turkey. ing facility that had been shut for context during his own 2001 capitated, crucified, burned Pope Francis has invoked the nic Armenian enclave within A border visit isn’t on the 16 months should help restore visit to Armenia, in a joint dec- alive—or forced to leave their persecution of Christians as a predominantly Muslim Azerbai- schedule, but such a gesture confidence in the Greek banking laration with Catholicos Karekin homeland.” Armenia is predomi- motive for closer ties with other jan that was overtaken by Ar- would be in character for a pope sector and could lead to the par- II, head of the Armenian Apos- nantly Christian, although Ro- Christian churches. menia during a six-year war that who likes surprising people. tial lifting of capital controls, tolic Church, who will also host man Catholics are few. Such concerns helped make ended with a 1994 cease-fire. During a visit to the Holy Land economists and bankers said. Pope Francis. The pope has been highly vo- possible the meeting in Febru- The recent outbreak of fight- in 2014, Pope Francis made an Greek banks hope it will en- But Pope Francis went fur- cal about the persecution of ary between Pope Francis and ing—the worst in decades—be- unscheduled stop to pray at the courage a return of deposits, after ther by calling the massacre of Christians, especially in Muslim- Patriarch Kirill of Moscow—a gan when Azeri forces broke Israeli separation barrier on the some €45 billion ($51 billion) was Armenians one of “three mas- majority countries, and has first between the leaders of the through Armenian lines in a bid West Bank. withdrawn beginning in late 2014 sive and unprecedented trage- called on Muslim leaders to de- Catholic and Russian Orthodox to retake strategic heights. The —Laura Mills in Moscow amid fears Greece might leave dies” in the 20th century, along nounce the actions of Islamic churches. A joint declaration by two sides accuse each other of contributed to this article. the euro. —Tom Fairless For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com URBAN GARDNER A14 | CITY NEWS A14, A15 | SPACES A16 | ARTS & ENTERTAINMENT A16 | SPORTS A18

MTA Steps Deere in the Spotlight Up Safety Artist dismantles vintage farm equipment ARTS | A16 CITY NEWS | A15 CASSANDRA GIRALDO FOR WSJ WSJ.com/NY ***** THE WALL STREET JOURNAL. Thursday, June 23, 2016 | A13 Study Challenges ‘Windows’ Tactic In Cutting Crime

BY ZOLAN KANNO-YOUNGS Minor Impact Cracking down on public Fewer low-level summonses and urination, disorderly conduct arrests haven't resulted in more and other low-level offenses felonies. doesn’t lead to a decline in more serious crimes, a watch- Monthly rate per 10,000 residents dog agency tasked with moni- 50 toring the New York Police De- Quality-of-life partment said Wednesday. 40 summonses From 2010 to 2015, the issuing of summonses and ar- 30 rests for minor offenses “dra- matically declined” with no Quality-of-life 20 increase in felonies, according misdemeanor to a report by the city’s Office arrests of the Inspector General. 10 “Deeper analysis of specific summons categories and spe- Felony-crime complaints 0 cific patrol boroughs revealed no correlation over time to 2010 ’11 ’12 ’13 ’14 ’15 any increase or decrease in Note: Data are seasonally adjusted. felony crime,” the report said. Source: Ofﬁce of the Inspector General for the New York City Police Department CLAUDIO PAPAPIETRO FOR THE WALL STREET JOURNAL The findings run counter to Donald Griffin, a sex offender, lives in a shelter on Wards Island, at the northern end of the East River between Manhattan and Queens. a tenet of the NYPD’s “broken THE WALL STREET JOURNAL. windows” approach that claims reducing low-level rests. The NYPD issued about crimes will lead to fewer ma- 100,000 fewer summonses in Sex Offenders Sue City, State jor ones. 2015 than it did five years ear- “The results of our investi- lier, according to the report. gation call into question some The city has reached historic Parolees say they are long-held assumptions about lows in violent crimes such as being kept behind bars the systemic impact of certain homicides and shootings. Residency Restriction tactics,” said Department of In- “The NYPD has lots of strate- because of shelter rule; State law prohibiting some sex vestigation Commissioner gies to reduce crime and they’ve sticking point is schools offenders from living within 1,000 feet Mark Peters, whose office done a very good job at reduc- of a school leaves few city shelters oversees the Inspector General. ing crime,” said Mr. Peters. “But BRONX An NYPD spokesman called they need to take a hard look at BY CORINNE RAMEY available to those who are homeless the report “deeply flawed” and the use criminal summonses to and recently released from prison. said the report should have see whether that’s an efficient Donald Griffin needed to looked at a longer time period, use of police resources.” satisfy his crack habit. So he School noting that crime in the city grabbed a sawed-off shotgun 1,000 ft. radius has declined for more than and robbed two women in the The report’s findings Men’s shelter two decades. elevators of Brooklyn apart- “To properly evaluate the ‘call into question Women’s shelter ment buildings. During one of MANHATTAN impact of quality-of-life en- the 1985 holdups, he reached Veteran’s shelter forcement, the Inspector Gen- some long-held into a woman’s bra looking for eral should have gone back to assumptions.’ QUEENS cash, he said. NEW JERSEY 1990 when there was a record Last June, Mr. Griffin was * number of murders, shootings paroled after serving nearly and violent crimes and exam- Mr. Peters said the use of 30 years in prison for robbery, ined the years before the de- these summonses overburdens grand larceny and sexual cline and to present,” the the NYPD and criminal-justice abuse. He wanted to move spokesman said. system and strains police- back home, to New York City. The Department of Investi- community relations. “I have brothers and sisters BROOKLYN gation responded in a state- The findings come after that have apartments, and ment that “we were not writ- Mayor Bill de Blasio and the nieces and nephews in ing a history of quality of life city council passed legislation Brownsville,” said Mr. Griffin, policing. We were interested earlier this year reducing pen- now 52 years old. But because STATEN in what works now.” alties for minor offenses. he is a sex offender and isn’t ISLAND Mr. Peters acknowledged Meanwhile, the NYPD said po- allowed within 1,000 feet of that the report doesn’t examine lice would issue criminal sum- school grounds, he couldn’t all of the tactics that fall under monses rather than arresting live with his family. 3 miles the broken-windows approach. people for offenses that don’t New York state enacted its The report analyzed nearly threaten the public. Sexual Assault Reform Act 16 *Shelter doesn't accept sex offenders Sources: City documents; 2 million summonses, more In March, Manhattan District New York State law; years ago. At the time, Gov. Note: Areas shown are calculated based on address than 650,000 misdemeanor ar- Attorney Cyrus R. Vance Jr. points rather than school grounds boundaries and may NYC Department of City Planning George E. Pataki, a Republican, not represent the full extent off limits to offenders. THE WALL STREET JOURNAL. rests, 600,000 felony com- said his office would stop pros- Please see LIMITS page A14 plaints and 200,000 felony ar- ecuting most minor violations. Seeking a Quick Fix, Going From Trains to Retail Chains

Knicks Acquire Rose BY KEIKO MORRIS Opened in 1891, the Termi- attractive to retailers: the Bounded by 11th and 12th nal Stores has a lively history: original silver-colored, steel avenues and West 27th and BY CHRIS HERRING 2016-17 season. A 125-year-old former its days as a warehouse and fire doors along the arcade; West 28th streets, the building The deal gives New York freight warehouse in Manhat- its nights as the Tunnel night- rounded arch entrances and is what Mr. Pachios described So much for the idea of a the starting-caliber point tan’s Chelsea neighborhood club. And today, windows; and refurbished as skyscraper of sorts patient rebuilding process. guard it has lacked for many has found that retail sells. SPACES Mr. Pachios wood beams. stretched horizontally. The The Knicks on Wednesday years—albeit one who has Already home to a bar, two said, it is trying “It’s not about getting the building is made up of 25 sec- acquired former MVP point restaurants, a wine shop and a to make its highest rent but about getting tions divided by fire walls that guard Derrick Rose from the coffee place, the Terminal mark as a cool retail-and-of- the right retailer,” Mr. Pachios have openings. Seven of these Chicago Bulls on the eve of the The Knicks are Stores is looking to bring in fice destination. said. “We want to create ame- sections are nine stories tall NBA Draft, giving up starting betting $21 even more retailers to drive Distinct industrial features nities to drive leasing of the and made of red brick and re- center Robin Lopez, starting million that the leasing of office space, are what makes the building upper floors and vice versa.” Please see SPACES page A16 guard Jose Calderon and rookie Derrick Rose said Chris Pachios, a partner guard Jerian Grant. can regain his at Waterfront New York, Chicago included wing MVP form of which owns a majority stake player Justin Holiday as well five years ago. in the property. as a 2017 second-round pick. Upstairs in the block-long The Knicks also waived guard building, Uber Technologies Tony Wroten on Wednesday, been plagued by leg injuries Inc., L’Oréal USA, architectural leaving the team with just one and hasn’t been able to regain firm Grimshaw, the Dsquared2 guard—Rose—under contract the level of play he displayed fashion company, and other heading into next season. during the 2010-11 season, creative and technology com- Rose, 27, is in the final year when he was named the NBA’s panies have offices, Mr. Pa- of a contract that will pay him Most Valuable Player. chios said. A mini storage op- about $21.3 million for the Please see KNICKS page A18 eration occupies a large portion of the building. The new shops will eventu- Weather N.Y. Sports Lineup ally line the cavernous brick- 74° walled arcade, where freight Real Feel TODAY’S trains once rumbled through. 9 a.m. 7:10 p.m. HIGH 66° Waterfront aims to convert a 5 p.m. 70° Thursday storage area above the arcade Mets @ Braves Max. Humidity into office space as it brings in more retail tenants. Already in 86% the building are the fast-ca- STORMY Sunrise/Sunset sual restaurant Between the 5:26 a.m./8:31 p.m. 7:05 p.m. Friday Bread and Porchlight, a cock- Twins tail bar from Danny Meyer’s @ Yankees Friday’s High Union Square Hospitality

83° Group, Manhattan Wine Co. KEVIN HAGEN FOR THE WALL STREET JOURNAL For N.Y. sports coverage, see A18 and a La Colombe cafe. Original steel beams support the 125-year-old Terminal Stores building, where trains once ran. For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com A14 | Thursday, June 23, 2016 ***** THE WALL STREET JOURNAL. CITY NEWS Robert Morgenthau, Produce Farmer

Over lunch a few weeks back, Robert Morgenthau, the former Manhattan district attorney, was asked when he leaves the city for weekend visits to his Hudson Valley farm. “Friday afternoon,” he said. “And when do you return?” “Sunday night.” At 96 years old, you’d think he might allow himself

TOM WILLIAMS/ZUMA PRESS to linger a Sen. Cory Booker in Washington, D.C., earlier this month. little longer. “I’m too busy,” he explained. Booker Cannot Mr. Mor- URBAN genthau’s GARDNER wife, the Pu- litzer Prize- Be Sued in N.J. RALPH winning GARDNER JR. journalist

Lucinda RALPH GARDNER JR./THE WALL STREET JOURNAL (2) Franks, re- Corruption Suit called: “When he retired played. They included FDR from being DA,” and went to campaigning for governor of BY KATY STECH ings. work for the law firm Wach- New York along the Erie Ca- “Senator Booker faithfully tell, Lipton, Rosen & Katz, “I nal, the king and queen of A bankruptcy judge ruled executed his duties as they re- said ‘You’re going to come England’s historic 1939 visit that Sen. Cory Booker (D., lated to the watershed, and we home at 2 or 3 at the latest.’ to Roosevelt’s home in N.J.) can’t be sued in the fall- hope that the court’s agree- He started wandering in at nearby Hyde Park, and that out of a multimillion-dollar ment brings this bizarre legal 6:30 every night. I said, ‘You meeting between FDR, corruption scandal at a non- chapter to a conclusion,” Marc broke your promise to me.’ Churchill and Henry Morgen- profit water agency, determin- Elias, Sen. Booker’s lawyer, He said, ‘I’m coming home a thau at Fishkill Farms. ing that he has immunity as a said in a statement. half-hour earlier than I did It included Robert Mor- public employee. The lawsuit that named as DA.’” genthau, then 22 years old, In a 39-page ruling, Judge Sen. Booker is the work of Mr. Morgenthau’s country and in his naval dress Vincent F. Papalia agreed to several court-appointed offi- home, Fishkill Farms, about whites, serving the not espe- dismiss Sen. Booker from a cials who were put in charge an hour and 20 minutes cially enthusiastic British lawsuit that accused him of of shutting down the agency north of the city, isn’t ex- prime minister a mint julep. negligence in his oversight of after its duties were trans- actly a country idyll, either. Apparently, Churchill re- the defunct Newark Watershed ferred to the city of Newark. “The cars back up all the jected the cocktail in favor of Conservation and Development As part of the wind down, the way to 84,” his son Josh told Robert Morgenthau signs a well-wisher’s book at Fishkill Farms, straight whiskey. Corp., which once delivered agency filed for bankruptcy. me when I visited the farm top. Strawberries for sale at the farm, above. There was also an exhibi- water to customers throughout A representative for the on Saturday, “Founder’s tion set up outdoors that in- northern New Jersey. court-appointed officials de- Day.” He was referring to In- As does Josh’s father. “He the porch and the farm cluded correspondence, Sen. Booker appointed Linda clined to say whether the group terstate 84 and the traffic not only runs it,” Ms. Franks store, but his mind remains filled with private jokes be- Watkins-Brashear, the agency’s plans to appeal. Their lawsuit waiting to access the 270- said of her husband and the as sharp as ever. “He’ll go tween FDR and Henry Mor- former executive director who also named more than a dozen acre farm, where 150 acres farm, “he makes up for the around the store and talk to genthau Jr., who were close was accused of mismanage- individuals and businesses who are in cultivation and 80 va- shortfall.” people and say, ‘You know, friends. “Most of these document and abusive spending, in- allegedly profited from the no- rieties of apple and a whole On Saturday afternoon, that Honeycrisp is the best,’” ments have never been seen cluding awarding more than bid contracts. Any money re- lot of other fruits and vege- Robert Morgenthau’s pri- his son said. before,” Mr. Morgenthau $332,000 in no-bid contracts to covered would be used to pay tables are grown. “That’s al- mary role was as the farm’s Indeed, this being said. her ex-husband for interior-de- the agency’s final bills. most a mile and half.” éminence grise, as his son Founder’s Day, Mr. Morgen- An American history les- sign work. In December, Ms. Founded in 1973, the agency On peak autumn week- describes him, greeting visi- thau launched into recollec- son might have seemed Watkins-Brashear admitting to was paid by Newark to man- ends as many as 6,000 peo- tors and accepting praise as tions of helping his own fa- slightly incongruous in the taking roughly $999,000 in age the city’s expansive fresh- ple visit the farm. he sat on a porch in sandals context of day tourists in kickbacks and pleaded guilty to water reservoirs in northern It was founded on June and wide-brimmed khaki hat, On peak autumn sneakers and shorts heading wire fraud. New Jersey and handle opera- 18, 1914, by Henry Morgen- across from the hamburger to the pick-your-own straw- In a ruling Tuesday, Judge tions at a water-treatment fa- thau Jr., Robert Morgen- stand, the bustling farm weekends as many berry patch. But the histori- Papalia said that Sen. Booker cility. thau’s father and President store and a majestic stand of as 6,000 people cal significance of the farm, should be dropped from a mis- Sen. Booker appointed Ms. Franklin Roosevelt’s treasury pines he planted as a child. and Robert Morgenthau’s spending lawsuit against Ms. Watkins-Brashear to the exec- secretary. These days the The family poodle, “Ivan the visit Fishkill Farms. own resume, seemed lost on Watkins-Brashear and other utive-director position shortly third generation manages Terrible,” served as protec- few. former agency leaders because after he became Newark the farm, incorporating the tion while Mr. Morgenthau’s A steady stream of visi- of New Jersey laws that shield mayor in July 2006. He served latest sustainable techniques. actual driver and bodyguard, ther host FDR at the farm tors approached the porch to public employees from liability as the city’s mayor until Octo- “Even though he’s secretary David Garcia, dropped by during World War II. “I used shake the great man’s hand, when they take legislative or ber 2013, when he became a of the treasury,” Josh Mor- with his family. to make mint juleps for ask to have their picture judicial action. U.S. senator. genthau, 32 years old, said “Because he was DA and him,” the former district at- taken with him or have him “Finding the exception to The agency’s lawsuit ac- of his grandfather, “he’s first received a lot of death torney remembered. “He autograph a book, and to immunity...would endorse a cused Ms. Watkins-Brashear of and foremost a farmer. There threats, he’s entitled a body- brought Churchill here on thank him for his service. piecemeal approach to public awarding more than $2.5 mil- was a sense of nobility in guard and driver,” Ms. June 20, 1942. Just before “I’m from Texas,” one man employee liability that would, lion worth of no-bid contracts farming and food production Franks explained. Tobruk fell. We have the vid- told him. “You’re one of my in this court’s view, result in for consulting, landscaping and that the Founding Fathers Mr. Morgenthau needed a eos of that.” heroes.” disorder and, more impor- other services to people who had and that my grandfather couple of canes to traverse Behind Mr. Morgenthau, tantly, discourage public ser- had agency connections—a vi- had.” the uneven terrain between his dad’s home movies [email protected] vice,” Judge Papalia said in his olation of the group’s charter. ruling, filed in U.S. Bankruptcy The lawsuit also said Ms. Court in Newark. Watkins-Brashear improperly shelters have been deemed off Under the agency’s rules, spent the agency’s money, in- LIMITS limits. About 100 sex offenders the mayor of Newark led the cluding at a 2010 conference who have completed their sen- Newark Watershed Conserva- where the agency paid for a tences are being kept in prison, tion and Development Corp.’s dinner for 20 that cost $1,410 ContinuedfrompageA13 according to a class-action board of trustees as chairman. and included lobster, king hailed it as a “historic lawsuit against the corrections Court documents said he crab, filet mignon, cognac and weapon” to protect New York- department and the agency didn’t attend any board meet- martinis. ers from sexual predators. that manages city shelters. In the past few years, the According to the lawsuit, push to keep tabs on sex of- filed last month in state Su- fenders has continued. In preme Court in Albany, the ©2016 Porsche Cars North America, Inc. Porsche recommends seat belt usage and observance of all traffic laws at all times. 2014, the state corrections de- state Department of Correc- partment stopped sending of- tions and Community Supervi- fenders to shelters within sion is illegally incarcerating 1,000 feet of school grounds those whose sentences are because of political pressure. complete, and the city, which is “In many cases, they’re not obligated by law to provide cured, and in some cases they shelter, isn’t making shelter commit crimes against chil- beds available. dren,” said state Sen. Jeffrey Some of the people being Klein, a Democrat who has re- held past their sentences are leased reports on sex offend- plaintiffs in the lawsuit, which

ers living near schools and in was brought by private firm CLAUDIO PAPAPIETRO FOR THE WALL STREET JOURNAL shelters. Willkie Farr & Gallagher LLP A field near the Wards Island shelter where Donald Griffin lives. Betty Braton has fought for and public-defender groups the years against sex offenders at Legal Aid Society and Prison- but operate as prisons, the where one day last week, a shelter in her part of ers’ Legal Services of New complaint says. young children played lacrosse Queens. “In most communities York. Oral arguments are Given the laws, the correc- at fields across the street. they prefer no sex offenders scheduled for August. tions department and the shel- Mr. Griffin has cobbled to- anywhere, but to have them all A state corrections depart- ter system are left with few gether work, including con- consolidated at one address is ment spokesman declined to options. “They are between a struction, and is planning his problematic for a community,” comment because of the pend- rock and a hard place in terms future. said Ms. Braton, chairwoman ing litigation. A spokesman for of what their options are,” said The other day, he swiped of Queens Community Board the city Law Department said JoAnne Page, president and through photos on his cell- Thrills have no odometer. 10. the complaint is under review. chief executive of re-entry or- phone and showed off his girl- The upshot for both New When released from prison, ganization the Fortune Society. friend and her toddler. “If all York and the city is that hous- a parolee typically gives an ad- Cities and states nationwide goes well, I’ll be putting a ring Some performances are timeless. A 3.6-liter V6 engine with a lightweight construction. An uncompromised sports car for four that delivers a true sports car driving experience. ing sex offenders has become dress that must be approved have passed laws much like on her finger,” he said. The Panamera surpasses on every drive, no matter if it’s your first time or your thousandth. Which is why for Porsche owners, there is no substitute. even more complicated. In the by the corrections department; New York’s that restrict where One thing, though, he is still past few years, the already state law stipulates certain sex some sex offenders can live. uncertain about how to handle. limited options for sex offend- offenders aren’t allowed within Some say these laws make it “How do you go to a real-es- The 2016 Panamera 4 Edition ers have shrunk as more city 1,000 feet of school grounds. nearly impossible for sex of- tate agent,” he said, “and say, “What the law does is ren- fenders to be reintegrated into ‘I can’t be within 1,000 feet of $ */MONTH 999 39MTHS der many people homeless,” society and note research has a school?’ ” $0 due at signing. CORRECTIONS said Wesley Caines, re-entry shown residency restrictions Excludes tax, title, and license fees. coordinator at Brooklyn De- don’t deter them from commit- $0 1st mo. pymt, $0 down pymt, We Want to Hear $0 bank fee & $0 security deposit. AMPLIFICATIONS fender Services, a public-de- ting another crime. fender organization. “Sex offenders are among From You Until the 2014 policy the people we fear the most, Have something to say about ® Ray Catena Porsche The restaurant Emily is in change, the corrections depart- yet we’ve created a scenario in an article in Greater New 920 Route 1, Edison, NJ 732-205-9000 Brooklyn’s Clinton Hill neigh- ment directed sex offenders to which it’s almost impossible York? Email us, along with www.ray-catena.porschedealer.com borhood. A Food & Drink arti- city shelters. “The fallout…was for them to become norma- your contact information, at cle Wednesday about pizzerias swift and severe,” the com- tive,” said David D’Amora, a se- [email protected]. Your letter incorrectly said Emily is in the nior adviser at the Council of Price incl. all costs to be paid by a consumer except for taxes, licensing & regist. Stk plaint says. could be published in our #P16580, VIN # GL005743, MSRP: $88,010. $0 1st mo pymt, $0 down pymt, $0 security Williamsburg area. The switch quickly created a State Governments Justice weekly Feedback column on deposit & $0 bank fee. 6 avail. at this price. Closed end lease incl. 10,000 mi/yr w/ backlog of offenders, some of Center, a policy-research non- excess @ .30¢ per mi. over. Ttl pymt/ttl cost/residual: $37,962/$37,962/$53,686.10. Friday. Letters will be edited Readers can alert The Wall Street Lessee resp. for maint. & excess wear & tear. Subject to primary lender approval. whom are in sections of pris- profit. Journal to any errors in news articles for brevity and clarity. Please by emailing [email protected] or ons that have been renamed For Mr. Griffin, home is now include your city and state. by calling 888-410-2667. residential treatment centers a shelter on Wards Island, For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com THE WALL STREET JOURNAL. ** Thursday, June 23, 2016 | A15 CITY NEWS

Celebrating the Life of a Slain British Lawmaker Greater City Audit Cites New York Lax Management Watch At Two Charters NEW YORK CITY BY LESLIE BRODY their response, disputed that the forms weren’t filed on Carnegie Hall Getting New York City’s comptrol- time and said their new ad- A $25 Million Gift ler on Wednesday released ministration is complying Carnegie Hall announced audits citing poor fiscal prac- with the rules. The audits Wednesday a $25 million dona- tices at two local charter covered 2013 and 2014. tion from industrialist Len Blav- schools, among the first such Merrick Academy was ac- atnik and his family foundation. reports since he said he cused of altering the terms of In recognition, the first-level would scrutinize the finances a $1.3 million contract with seating area of the hall will be of a sampling of charters. Victory Schools Inc., a for- named the Blavatnik Family First The schools, Bedford Stuy- profit management company, Tier for the next 50 years. vesant New Beginnings Char- without putting those changes Founder of Access Industries ter School and Merrick Acad- in writing. The auditors found Inc., Mr. Blavatnik has been a emy Queens Public Charter no documentation to show Carnegie Hall trustee since 2014 School, both said in written that the school’s board of and a supporter for more than a responses that they had taken trustees approved a move to a decade. The gift goes toward steps to address some of the new location or considered its the hall’s 125th-anniversary cam- concerns and disputed other costs, which totaled $4.5 mil- paign, which includes artistic, ed- findings. lion. The report said the ucational, and digital initiatives.

school lacked proof that all DON EMMERT/AGENCE FRANCE-PRESSE/GETTY IMAGES —Pia Catton employees had passed crimi- REMEMBERING: Samantha Power, the U.S. ambassador to the U.N., spoke Wednesday as The schools say they nal-background checks. diplomats gathered in New York to honor Jo Cox, who was killed in an attack in northern England. NEW YORK CITY are taking steps to Gerald Karikari, board Chief of 9/11 Museum address some of the chairman of Merrick Acad- emy, said some documents Announces Departure city’s concerns. got lost in the school’s move, National September 11 Me- and auditors didn’t heed morial & Museum President and board members’ testimony MTA Targets Sex Offenses CEO Joseph Daniels will step Supporters and critics of about voting on the new loca- down this year, he told the charters—which are taxpayer- tion. “Auditors tried to dimin- BY JOSEPH DE AVILA the subways catching violators clude whether or not there is an board in a letter Wednesday. funded and privately oper- ish us,” he said. “It was very in the act. Law-enforcement of- increase in these crimes,” Ms. Mr. Daniels, in the post for a ated—are awaiting the release disheartening.” Metropolitan Transportation ficials say there is no evidence Roy said. “I think the safe con- decade, said he will remain until of Comptroller Scott Victory Schools said Mer- Authority Chairman Thomas that more crimes are being clusion to draw is that people a successor is found. During his Stringer’s audit of the city’s rick Academy hadn’t wasted Prendergast said Wednesday committed. feel more comfortable reporting tenure, he led a capital campaign largest charter network, Suc- taxpayer funds on its services, that the agency needs to im- “Whether or not people re- their experiences of sexual that drew more than $450 mil- cess Academy Charter and that the company cut its prove its response to sexual of- port more on any subject cate- crimes.” lion in private donations. Schools. It is scheduled to be fees when the scope of its fenses on the subway, following gory, versus there is an actual Ms. Roy said that the MTA —Pia Catton completed this year. work was reduced. new figures showing that re- increase, there is always a dia- could add more signs in the Auditors said New Begin- ports of such crimes are rising. logue on that issue,” Mr. Pren- subways explaining to young NEW YORK nings didn’t have written con- New York Police Department dergast told reporters following people that actions like flashing tracts or project plans for $1.5 officials said on Monday that an MTA board meeting on are crimes. Female teens are of- New Law Limits million spent on construction 458 sexual offenses had been Wednesday. But “perception is ten unaware that these types of Opioid Prescriptions during the audit period, and it reported in the subway system reality, and we need to deal crimes occur or don’t know New York is limiting opioid lacked controls over parents’ for the calendar year through with it at that level.” what they should do following drug prescriptions to seven days cash payments for lunches Monday, compared with 299 in Mr. Prendergast said the an incident, she said. of painkillers following a pa- and other programs. The re- the same period last year, a 53% MTA must do all it can to re- More female police officers tient’s initial visit to a doctor. port said most board mem- increase. Gov. Andrew Cuomo duce such crimes and make in the subway would also make Gov. Andrew Cuomo, signing bers also failed to file finan- wrote to the MTA Tuesday that sure the reports are appropri- female victims more comfort- the legislation on Wednesday, cial-disclosure forms on time. the increase is unacceptable. ately investigated. able coming forward, she said. said it is among four significant Further, the schools wrote The violations include such Debjani Roy, deputy director Even with the rise in reports, measuresthatheandstatelaw- nearly $60,000 in checks for behaviors as unwanted touching of Hollaback!, an anti-harass- many people still don’t come makers are enacting to help ad- amounts roughly $1 less than and public lewdness. Police offi- ment advocacy group, said the forward, “often because they dress the national opioid- and the $5,000 threshold that re- cials have attributed the rise in MTA has made progress re- are afraid,” said Oraia Reid, a heroin-addiction crisis. quires signatures by two reports to more victims coming sponding to sexual crimes, in- founding member of New York- The law also requires insurers

school officials, possibly to ANDY KATZ/PACIFIC PRESS/ZUMA PRESS forward, following public-out- cluding getting more victims to ers for Safe Transit, an advo- to cover initial inpatient drug avoid oversight. Comptroller Scott Stringer is reach efforts and increased step forward. cacy group that is no longer ac- treatment without prior approval. New Beginnings officials, in auditing some charter schools. numbers of police officers in “It’s always tricky to con- tive. —Associated Press

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ContinuedfrompageA13 down 11th Avenue, according inforced concrete and steel. to research from the Historic The rest are seven-story red- Districts Council. brick buildings designed in a West Chelsea became a cen- mill-construction style with ter of warehouse and freight heavy wood beams. handling businesses in the late The red-brick facade on 11th 19th century because of its Avenue has a large, central, links to the railroad lines and arched entrance filled in with the construction of piers on glass, with the words “Termi- the Hudson River, according to nal Stores” directly above it the Historic Districts Council. and the words “Terminal The Terminal Stores was Warehouse Free Cold Bonded used by both large businesses and individuals. Prominent firms such as department ‘It’s not about getting store magnates Gimbel Broth- the highest rent but ers and John Wanamaker oc- cupied several of the buildings. about getting the In 1934, the High Line ele- right retailer.’ vated railway opened a block away and the street tracks on 11th Avenue were removed, be- Storage” higher on the front. ginning a decline for ware- When original owner Terminal houses and the neighborhood; Warehouse Co. constructed the decline became a down-

the building, the central open- ward spiral later when high- KEVIN HAGEN FOR THE WALL STREET JOURNAL (3) ing was designed to allow two ways became the preferred Event space at the Terminal Stores, above. Between the Bread, a fast-casual restaurant, below right. The building’s facade, below left. rail tracks to enter the build- mode of transporting freight, ing and exit the other side on according to the Historic Dis- cade; the club lasted for more Chelsea Mini Storage, which 12th Avenue through another tricts Council. than a decade. Coleman P. occupies about 500,000 square large arched-opening. Long after Chelsea’s indus- Burke, Waterfront’s founding feet of space in the building. Trains could travel directly trial heyday, in 1987, a night- and managing partner, bought For retailers, the Terminal from the freight yards on West club called The Tunnel opened Terminal Stores in 1983. The Stores offers foot traffic— 30th Street to the north and in the Terminal Stores’s ar- company also owns and runs about 2,000 office workers daily, residents of Chelsea and the emerging Hudson Yards neighborhood, and visitors to High Line park. Jonathan Eisen and Victoria Rolandelli opened a new location of their Between the Bread shop this spring, drawn to the building’s industrial features. “The layout lends itself to a nice user experience,” Ms. Ro- landelli said, referring to the ground-floor tunnel. “It’s wide and this lends itself to walking. It would be cool if there were centralized kiosks between the columns.” Porchlight, which opened last year on the building’s corner at 11th Avenue and West founder Mark Maynard-Parisi. “A lot of people, when they 28th Street, incorporated a The bar has a large arched walk in, they say, ‘Oh my God, thick original wood beam and window with the original cast- this is so cool,’ ” Mr. Maynard- a vertical cast-iron column iron shutters, which the bar Parisi said. “It’s not something into the bar’s design, said co- cleaned and repainted. you see every day.”

ARTS & ENTERTAINMENT Artist Goes John Deere Green BY ANDY BATTAGLIA ogy. For the immersive instal- “It’s childish on one hand, lation, sculptor David Brooks like this big toy with cogs and What is enormous, has has disassembled the machine wheels that we can all identify clawed green toes and is im- into thousands of constituent with,” Mr. Brooks said of the posing enough to cast a shadow parts and put every one on piece, which splays out over in a museum entryway? meticulous display. 9,000 square feet in all areas A dinosaur of the farming- Some are kept outside, in of the museum. equipment kind. their normal habitat; others The work also addresses A vintage vehicle—a 1976 are exhibited indoors, artfully the idea of man-made ma- John Deere 3300 combine har- lighted on pedestals and in chines used to shape the or- vester, to be exact—is the star vitrines. Titled “Continuous ganic world. of an unusual new artwork at Service Altered Daily,” it is the “There’s an uncanny aspect the Aldrich Contemporary Art artist’s first solo museum ex- to this weird-looking box Museum in Ridgefield, Conn., hibition. slowly consuming the land- that explores the relationship The sculpture’s inspiration, scape,” the artist said. “A com- between nature and technol- in part, was a playful one. bine is a thing that puts food on the table and feeds millions but at the same time contrib- utes to [destruction of the ter-

rain] and a decline of biodi- MICHELLE MCLOUGHLILN FOR THE WALL STREET JOURNAL (4) versity.” The strangeness of the David Brooks’s ‘Continuous Service Altered Daily’ includes every combine is on display from the part of a disassembled 1976 John Deere 3300 combine harvester. start, with hulking tires buried Mr. Brooks looks through one of the pieces on display, below right. in the ground along the Al- drich Museum’s walkway and what looks like a giant metal foot standing by the entrance. The clawed contraption is in fact the corn head, which chops down stalks and starts the harvesting process. “Separated from its body, it is a horrifying thing,” said Mr. Brooks, pleased with its evoca- tion of an alien creature in John Deere green. Inside, museumgoers are greeted by a video of the combine in operation, with different views to show the many interlocking parts of such a large and complex machine. That complexity is key to Mr. Brooks, a 41-year-old Kykuit Brooklynite whose environ- mentally minded art has the Rockefeller Estate drawn on an interest in eco- For the Aldrich project, on ics, with some parts painted thousands of component parts systems studied during review until February 2017, Mr. gold or brass-plated. echoes the daunting task faced Visit Westchester’s premier cultural attraction search trips to the Amazon Brooks said he came to think of “They really transformed by scientists trying to make and the Florida Everglades, the combine as a kind of eco- from what they were before— sense of ecosystems around Stunning architecture, spectacular OPEN: among other locales. system in itself, with intercon- crusty, rusty suspension the world. THU -SUN A piece called “Lonely Lori- nected parts and too much hap- springs—into something that “Good scientists are philo- gardens, world-class art, unparalleled cariidae,” exhibited at the pening at once to ever observe is quite precious,” Mr. Brooks sophically in tune with the views...Spend the day here and find plus July 4th 2014 Art Basel fair, included and understand as a whole. said of a few favorite metal limitations of science,” said tanks of Amazonian catfish “There’s a lot going on in a pieces set off in a vitrine. Mr. Brooks, who aligned his inspiration around every corner. Visitor Center at that, while not yet even named machine like that,” said David “Many people don’t really dissected combine with “over- Philipsburg Manor by scientists, have already Gelfman, an artist and machin- know what a combine har- thinking and overdetermining TAKE THE TRAIN FROM NYC & SAVE! been commodified in the orna- ist who was hired to help Mr. vester is and what it does, and something to such a degree Sleepy Hollow, NY mental aquarium trade. Brooks take it apart. there’s quite a fascination that it becomes abstract and hudsonvalley.org/kykuitdiscount In another industrial-pasto- Some of the combine parts once they see,” said Amy has nothing to do with the ral piece, “A Proverbial Ma- were left untreated and raw, Smith-Stewart, an Aldrich Mu- thing in front of you.” > TICKETS + INFO chine in the Garden” from like sheets of green metal seum curator who commis- He likened the piece to “sci- hudsonvalley.org or call call 914.366.6900 914.366.6900 2013, he buried a tractor in hung on the walls and augers sioned the piece. ence working itself into an ir- the ground at the Storm King that stand tall on a pedestal For Mr. Brooks, the pur- rational state” while searching >HHValley >InTheValley1 Art Center in upstate New like spiral totem poles. Others posefully overwhelming pre- for understanding that re- York. were turned into beautiful rel- sentation of the combine in its mains elusive. For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com THE WALL STREET JOURNAL. ** Thursday, June 23, 2016 | A17

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NEW YORK’S #1 CHILDREN’S HOSPITAL FOR 10 YEARS INAROW. A18 | Thursday, June 23, 2016 ** THE WALL STREET JOURNAL. SPORTS Why New Yorkers Should Care About the Draft

The Knicks and Nets are 6.7 assists a game while shooting barely involved, but here 58.1% from the field and 64.7% from 3-point range. are four reasons to watch Helping English’s cause is his 6- foot-4 frame and his experience BY ALEX RASKIN playing for Iona coach Tim Cluess, whose fast-paced system forces New York would be blissfully ig- guards to make quick decisions and norant of Thursday’s NBA Draft were keep defenders on their heels. it not for the fact that it is being “He’s a good scorer, can shoot held at Brooklyn’s Barclays Center. from range, and he played in—as you Years of aggressive trades left the know, Tim Cluess has an up-tempo Knicks and Nets with a combined .323 system, but he’s been really effec- winning percentage in 2015-16 and tive,” said Bilas. “He does turn the without first-round pick in this year’s ball over a little bit, but when you draft. In fact, the two losing teams play at that pace, you’re going to have only one second-round selection cough it up once in a while.” between them, and even that came with strings attached: By virtue of the Back to Mount Vernon. The Nets’ 2012 sign-and-trade acquisition Westchester suburbs are sending yet of Reggie Evans, the Los Angeles Clip- another player to the draft. This pers exercised their right to swap time it’s Oklahoma combo guard Isa- second-round picks, taking the 33rd iah Cousins, who hopes to follow the selection and giving the 55th pick to likes of brothers Gus and Ray Wil- Brooklyn in return. liams and Ben Gordon from Mount There is a chance that Knicks pres- Vernon High School to the NBA. ident Phil Jackson or Nets general Cousins was overshadowed at manager Sean Marks could find a way Oklahoma by fellow guard Buddy to move into the first round, but in Hield, a likely lottery selection, but all likelihood, local basketball fans the 6-foot-6 guard sank over 40.7% will be asleep long before either team of his 3-point attempts in four col- does anything on Thursday night. lege seasons and might have some So for those who would rather potential as a point guard. not watch the rest of the NBA add Cousins finished fourth in the Big talent but still want to tune in, here 12 with 168 assists in 2015-16, and is are a few local story lines that are considered by most draft experts to far more interesting than the current be a second-round pick. state of the Knicks and Nets. Will Mostar tempt the Nets once The rise of Isaiah Whitehead. again? The franchise hasn’t signed a The 21-year-old from Brooklyn re- single Brooklynite since moving to stored Seton Hall to national promi- the borough of around 3 million peo- nence this past year. A product of ple in 2012, but in that same time Coney Island’s famed Abraham Lin- has found not one, but two players coln High School and the only player from this city of fewer than 70,000 from New York City to make the people in southern Bosnia and Her- McDonald’s All-American Team in zegovina. the past six years, Whitehead was In 2003, the New Jersey Nets the unquestioned leader of a Pirates drafted Mostar native Zoran Planinic team that upset No. 5 Xavier and No. in the first round. More recently, the 3 Villanova en route to a Big East Ti- Nets acquired Mostar natives Mirza tle and an NCAA Tournament berth. Teletovic, who now plays for the Whitehead, a 6-foot-4-inch combo Clockwise from top: Brooklyn product Isaiah Whitehead, former Iona star A.J. English III, and Oklahoma’s Isaiah Cousins. Phoenix Suns, and swingman Bojan guard, struggled as a freshman in Bogdanovic. 2014-15, shooting just 36.7% from the will be taken midway through the Don’t sleep on A.J. English III. to an upset of favored Monmouth in This time, the historic town on field while averaging 12 points and 3.5 second round. “He’s got a 6-8 wing The son of former Washington Bul- the MAAC Tournament final, English the Neretva River has produced cen- assists a game. He still shot only 37.9% span even though he’s only about 6-4, lets guard A.J. English, English wasn’t considered a lock to get ter Ivica Zubac, a 19-year old pro- from the field last season, but pushed a very good passing instinct even started every game for Iona in his fi- drafted. jected to be taken toward the end of his averages to 18.2 points and 5.1 as- though he turns it over a little bit too nal three collegiate seasons, becom- That may have changed in April at the first round or early in the second sists a game and now he looks like a much, probably goes for the home ing the New Rochelle program’s sec- the four-day Portsmouth Invitational round. Unfortunately that would lock to go in the second round. run instead of the easy play. But his ond all-time leading scorer. Tournament in Virginia, where NBA likely leave the 7-foot, 265-pound “He’s big and strong,” said Jay Bi- physical tools are really good. He gets But even after a senior season in scouts pick through collegiate se- prospect out of the Nets’ grasp, but las, the former Duke star and current a lot of steals, and he’s also a very which he averaged 22.6 points and niors. English was named the event’s they could always move up to keep ESPN analyst who thinks Whitehead good shot-blocker for a guard.” 6.2 assists a game while leading Iona MVP after averaging 17.3 points and their Mostar streak in tact.

Heard on the Field adds a whole new dynamic to our ROSE Derrick Rose has missed 235 roster and immediately elevates our of 394 regular-season games backcourt.” Syndergaard, Cespedes over the past five seasons. The deal, perhaps the clearest ContinuedfrompageA13 sign yet that the Knicks will be in Leave Win With Injuries Since winning the award, Rose the market for a wing player during The Mets’ 4-3 win over the Kan- has undergone three knee surgeries free agency, raises a handful of ques- sas City Royals on Wednesday and a separate surgery to repair an tions about how the team views it- turned potentially catastrophic when orbital fracture in his eye. self at the moment. the team’s two best players, Noah After years of struggle, Rose By swapping Rose for Lopez, who Syndergaard and Yoenis Cespedes, played far better toward the end of wasn’t only a solid player but also left Citi Field with injuries. the 2015-16 season, averaging 17 under a long-term contract, the team Syndergaard, who improved to points a game and shooting almost is moving away from the continuity 8-2 with the win, exited the game 47% after the All-Star break. Still, he it appeared to be building with this after six innings with discomfort in has missed 235 of 394 regular-sea- most recent roster. Lopez’s depar- his pitching elbow. Cespedes, who son games over the past five years, ture may mean Porzingis becomes leads the Mets in home runs (18), making this a huge gamble for the the starting center. And by dealing RBI (44) and batting average (.290), Knicks, even if he’s only under con- Grant, it becomes harder to say the left with a sore left wrist. Cespedes tract for one more year. team is undergoing a rebuild. That’s was visibly in pain during his at-bat The short-term nature of the deal probably music to the ears of Car- in the bottom of the fifth inning, also makes it a bit surprising that the melo Anthony, who, at 32 years old, when he fouled off four pitches. Knicks are giving up so much for a is running out of chances to return Cespedes and Syndergaard left to player the Bulls were soon going to to the playoffs after three straight see Dr. David Altchek at the Hospi- wash their hands of anyway. Lopez, disappointing seasons. tal of Special Surgery in Manhattan. who signed with the Knicks last sum- And while Rose clearly fits Hor- Syndergaard is the only one of mer for what now looks like a bar- the team’s point guard of the future. spot now, as opposed to waiting un- nacek’s bill of a player who can oper- the Mets’ four young starters who gain, was the Knicks’ most consistent He also figured to benefit from new til the summer of 2017, when more ate at a faster pace, he’s one of the hasn’t undergone Tommy John sur- starter last year, and considerably coach Jeff Hornacek’s up-tempo style, top-flight point guards are set to be- NBA’s poorer outside shooters, gery, the elbow ligament procedure slowed Kristaps Porzingis’s learning which uses more pick and rolls. come available. something that goes against the that typically keeps pitchers out for curve at the center position. Grant im- But if anything, Hornacek’s arrival “Derrick is one of the top point grain of what Phil Jackson has gen- a minimum of one year. proved toward the end of the season has seemed to embolden the Knicks’ guards in the NBA who is playoff- erally targeted at the point-guard —Andrew Beaton and, at times, looked like he could be desire to upgrade the point-guard battle-tested,” Hornacek said. “He position for his triangle offense. FEATURE (CLOCKWISE FROM TOP): VINCENT CARCHIETTA/REUTERS; GREGORY BULL, BRENNAN LINSLEY (ASSOCIATED PRESS); NOAH K. MURRAY/REUTERS (ROSE)

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BY MIKE RAMSEY than 60% of its value over the pany and has recused himself for a solar company with lim- AND REBECCA SMITH past 12 months. Its shares from shareholder votes and ited synergies and uncertain closed 3.3% higher. board decisions. growth and cash prospects. Tesla Motors Inc.’s plan to “We are not happy with the “The market obviously hates Oppenheimer & Co. analyst acquire SolarCity Corp. got a offer,” said Sam Korus, an ana- this,” said Shawn Kravetz, a Colin Rusch suggested inves- cold reception from investors lyst with ARK Investment fund manager at Esplanade tors would view the takeover and analysts, who raised con- Management LLC, which holds Capital LLC in Boston who in- as a bailout of SolarCity and cerns the takeover could prove 75,000 shares of Tesla in three vests in solar companies and lowered Tesla’s rating to per- a diversion for the electric-car different funds and has often until recently owned SolarCity form from outperform. maker and worsen both com- been bullish on the company. shares. “There are symbiotic The planned takeover puts panies’ strained finances. He said his firm would likely relationships here, but cousins “your head in the conflict-of- Tesla shares plunged by vote against the offer. should not get married.” interest blender,” said Charles more than 10% on Wednesday, Tesla CEO Elon Musk is the Mr. Kravetz fears SolarCity Elson, director of the John L. a day after it proposed an all- chairman and largest share- shares could plunge even fur- Weinberg Center for Corpo- stock deal valuing the solar- holder of both companies. Mr. ther if the deal fails. Barclays Please see TESLA page B2 power company at up to $2.8 Musk, whose cousin Lyndon Capital said the deal would

billion. Both firms are unprof- Rive runs SolarCity, owns add another $2.6 billion in Heard: Solar buy won’t help HOW HWEE YOUNG/EUROPEAN PRESSPHOTO AGENCY itable, and SolarCity lost more more than 20% of each com- debt to Tesla’s balance sheet Tesla meet its goals...... C1 Baili lodged a complaint over the design of the iPhone 6 and 6 Plus. Chinese Firm Battling Apple Barely Exists BY EVA DOU Baili a sales injunction in the city AND ALYSSA ABKOWITZ on the iPhone 6 and iPhone 6 Plus. The order has been stayed BEIJING—When a Beijing as Apple appeals the decision. regulator recently ruled against “IPhone 6 and iPhone 6 Plus Apple Inc. in a patent dispute, products do not infringe upon it handed a victory to a Chinese the design patents” held by company that barely exists. Shenzhen Baili, Apple’s lawyers Phone calls to the company, wrote in their appeal. Shenzhen Baili Marketing An appeal of a decision by Services Co., ring unan- the regulatory body must go to swered. Its websites have the courts, and Beijing’s Intel- been deleted. Visits to its lectual Property Court is ex- three registered addresses pected to hear the case in a found no company offices. few months. Baili and its parent, Digione, The case comes as Chinese are part of a rapid boom and companies become more adept bust in China’s new wave of at taking advantage of a ma-

EDMUND D. FOUNTAIN FOR THE WALL STREET JOURNAL smartphone makers. When Baili turing patent system and rep- Sales at Plant Gallery, a garden center and landscape firm in New Orleans, are up about 6% so far this year but running below 2015’s increase. took on Apple in December resents a further complication 2014, telling Chinese regulators for Apple, which is already fac- that the Cupertino, Calif., coming challenges in the country Small Businesses Wary of Election pany’s new models infringed on with slower sales and the sus- its smartphone design patents, it had bold aspirations, a big- A Beijing regulator Owners have delayed Dale Donat, owner of Mid Small businesses are more name investor in Chinese inter- America Metals,anarchitec- likely to be skittish because net giant Baidu Inc. and a team said the U.S. giant hiring, reduced orders Sliding Confidence tural restoration firm in The WSJ/Vistage small-business they face a higher cost of capi- of experienced executives. infringed on Baili’s for new equipment or Ozark, Mo., with 105 employ- confidence index tal than larger firms and often By the time regulators ees, has put on hold plans to have more trouble recovering reached a decision this year, Di- design patents. put off investments invest about $750,000 in three 115 from mistakes, he said. gione had collapsed, brought major projects, including a 110 Prof. Julio said that this down by buggy products, mis- BY RUTH SIMON new software system, because election “will have a higher management and fierce competi- pension in April of its iTunes of political and economic un- 105 degree of uncertainty than tion, according to former em- Movies and iBooks services. After months of contentious certainty. “I know I need to do those we have seen in the ployees and investors. Digione Baili might consider expand- campaigning, Democrats and these things to grow the com- 100 past” because of the sharp dif- has been absent from China’s ing its suit to the iPhone 6s and Republicans have settled on pany,” Mr. Donat said, “but I ferences between Hillary Clin- mobile-phone market for at least iPhone 6s Plus, said Mr. Yang. their presumptive presidential feel very nervous about spend- 95 ton and Donald Trump, and a year and Baidu has accused it “The issue here is not whether candidates. But that has done ing all that money.” ongoing questions about what of squandering its investment. Digione makes phones anymore, 90 little to end the uncertainty Small-business owners’ June 2016 their economic platforms will Baili, its unit that registered but whether the iPhone 6 in- that many small-business concerns about the future U.S. look like. the phone patents, will continue fringes on this patent,” he said. 85 93.6 owners say is president are compounded by Vectors Inc., an equipment- to battle Apple in court, said Di- With an expected long ap- SMALL weighing on a shaky economy, a sharp 80 Baseline=100 supply company in Aurora, gione lawyer Andy Yang, of Bei- peals process, the ruling isn’t BUSINESS their operations. slowdown in oil and gas in- Colo., is holding back on pur- jing Wis & Weals. “Shenzhen likely to have an immediate ’12 ’13 ’14 ’15 ’16 Roughly one- vestment, and the possibility chasing several million dollars Baili is still operational in its sales impact on Apple. third of 715 of future interest-rate in- Note: Index is based on monthly surveys of of additional equipment for necessary functions,” he said. “IPhone 6 and iPhone 6 Plus firms with $1 million to $20 million in annual small-business owners sur- creases. revenue on issues such as sales expectations, rental and sales. Owner Matt Mr. Yang declined to comment as well as iPhone 6s, iPhone 6S veyed in June by The Wall Overall business investment spending and hiring plans. Nawrocki said his clients re- on queries about Digione’s rela- Plus and iPhone SE models are Street Journal and Vistage has already slowed. Nonresi- Source: The Wall Street Journal/Vistage port that construction jobs tionship with Baidu. all available for sale today in Worldwide Inc. said that un- dential fixed investment has THE WALL STREET JOURNAL. have been delayed because of Digione, whose formal name China,” Apple said in a state- certainty related to the No- fallen for the last two consec- “the drastic differences be- is Shenzhen City 100/100 ment to The Wall Street Jour- vember presidential election is utive quarters, according to tion, while consumers scale tween the two political par- Digital Technology Co., and nal Wednesday. having a negative impact on the Commerce Department, back purchases of durable ties”onissuessuchastaxes Baili are both insolvent, their Patent-infringement suits their business. the first back-to-back quar- goods and higher-priced items, and regulation. debt exceeding their total as- are common in the high-tech in- Firms have reported delay- terly drops since 2009. said Brandon Julio, an assis- Summer is usually a busy sets, according to the compa- dustry. Apple and Samsung ing hiring, putting off invest- Companies typically pull tant professor of finance at time for the company, as land nies’ annual financial reports. Electronics Co. have held a se- ments or reducing new equip- back on capital investment the University of Oregon surveyors buy or rent equip- The Beijing Intellectual Prop- ries of private negotiations ment orders. and hiring ahead of an elec- Lundquist College of Business. Please see ELECT page B2 erty Office last month granted Please see APPLE page B4 New York Isn’t Ready for Wider Canal Video Viewers in China

BY ROBBIE WHELAN for a wider canal. Open Up Their Wallets Some carriers now say they Ports on the U.S. East Coast will hold off on booking voyages nline video in China is its paywall, which charges have been hurrying to prepare via Panama for their larger O starting to look more 19.8 yuan ($3) a month or their harbors, terminals and ships. Others are spending mil- like Netflix and less 198 yuan a year. More than roads for the arrival of super- lions to retrofit bigger vessels like YouTube, as more users 2.6 million requests flooded size container ships that are ex- they had already committed to agree to pay for subscriptions. in, disabling the site’s con- pected to pass through the Pan- routes between Asia and the In June 2015, iQIYI,the tent and payment systems. ama Canal once its expansion is East Coast, eating into the ex- video arm of China search Six months later, iQIYI had completed later this month. pected savings from sending company Baidu, grown to 10 million subscrib- But the East Coast’s busiest those ships through the canal. aired two epi- ers; earlier this month, the port won’t be ready for them. If New York isn’t ready, it is sodes a week of company said it reached 20 Late last year, the Port Au- unlikely that any U.S. East the fantasy on- million paying customers. thority of New York and New Coast ports will see the big- line series “The Subscribers can view some Jersey announced that a proj- gest ships either, according to Lost Tomb.” new movies and television se- ect to raise the Bayonne Bridge, Marc Bourdon, who heads the Some fans of ries ahead of nonpaying us- an 83-year-old arch that spans U.S. operations of France’s CHINA the popular on- ers, bypass commercials and

the channel between Bayonne, ROBBIE WHELAN/THECMA WALL STREET JOURNAL CGM Group, one of the CIRCUIT line novel of- enjoy higher video resolution N.J., and New York’s Staten Is- A ship goes under the Bayonne Bridge. A project to raise it is delayed. world’s largest shipping lines. LI YUAN feredtopayto and audio quality. Subscribers land, would be delayed until “With the Panama Canal see all the epi- also are offered occasional ac- the end of 2017 because of en- largest terminals at the Port of lead to an immediate surge in opening, I think you’ll see sodes at once. cess to meet with stars. gineering miscalculations and New York and New Jersey, lo- cargo headed for the East Coast. some…slightly larger vessels At the time, iQIYI said it The growth of paid online construction work slowed by cated beyond the bridge in New York, with its bustling port coming through, but not the had about 500 million users, video subscribers is a depar- inclement weather. Newark and Elizabeth, N.J. and direct access to the densely biggest ones,” Mr. Bourdon but only about five million ture for Chinese online users, Until the project is com- The delays undermine the populated Northeast corridor, said. “You need New York to paying subscribers. On July who were notoriously reluctant pleted, larger ships passing economic rationale for the ex- was the destination many Asian take them. It’s the major port. 3, 2015, iQIYI posted all 10 to pay for content and had through the Panama Canal will pansion, and raise doubts about exporters and shipping lines None of the other ports along episodes in the first season easy access to pirated DVDs be unable to visit the three whether the wider canal will had in mind when they pushed Please see CANAL page B2 of “The Lost Tomb” behind Please see VIDEO page B4 For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com B2 | Thursday, June 23, 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.

A Glass Lewis...... C3 Holding...... B7 ‘Titanic’ Exhibitor Seeks Artifact Sale to Stay Afloat CANAL Airbus Group...... B2 Goodrich Petroleum....C2 Premier Exhibitions....B2 Alibaba Group...... B3,B4 Google...... B3 Q Amazon.com...... B4 H QEP Resources...... C1 Continuedfromthepriorpage AMC Entertainment Hennes & Mauritz...... B6 R the coast would be able to sus- Holdings...... B6 Hermes EOS...... B3 tainavesselofthatsize.” Ralph Lauren...... D3 American Express...... C3 Hewlett Packard Shipping lines like CMA CGM Apple...... B1 Enterprise...... C8 Regeneron Pharmaceuticals...... C4 want to boost traffic on direct Azimo...... C2 Honeywell International routes between Asia and the East S B ...... B2 Coast because they can charge Hon Hai Precision Samsung Electronics..B1 BAE Systems...... B6 more to carry containers greater Industry...... B4 Seaspan...... B2 Baidu...... B1 distances and save money by pil- HP...... C8 Sharp...... B4 Bank of America...A8,C1 ing thousands more containers Hyundai Motor...... B7 Shenzhen Baili Bed Bath & Beyond....B8 onto one ship. Shippers would I Marketing Services..B1 Birchcliff Energy...... C1 also save because they wouldn't Imax...... B6 Shenzhen City 100/100 BlackRock...... C2 Digital Technology....B1 need to book trains or trucks to BMW...... B7 Institutional carry goods across the country. Shareholder ServicesC3 SoftBank...... B3 Boeing...... B2 The cost of shipping a con- iqiyi...... B1 SolarCity...... B1,C1,C4,C8 C Southwest Airlines....B7 tainer from Hong Kong to New J York rises by more than 50% if it Celgene...... C4 Sprint...... B3 J.P. Morgan Chase...... A8 is delivered to a West Coast port Centennial Resources State Street...... C2 Development...... C2 K Statoil...... C4 and moved overland the rest of the way, according to Catapult Chesapeake Energy.....C4 Kia Motors...... B7 SunRun...... C8 Credit Suisse Group....C3 Synchrony Financial...A8 International. L The U.S. Coast Guard ap- Criteo...... A2 T London Stock Exchange proved the $1.3 billion bridge- D Group...... C3 Tencent Holdings...... B4 raising in 2013. The project, Daimler...... B7 M Tesla MotorsB1,C1,C4,C8 and a $1.6 billion deepening of Deka MDAX R Ucits...B3 Toyota Motor...... B7 Marathon Oil...... A2,C4 LESZEK SZYMANSKI/EUROPEAN PRESSPHOTO AGENCY the harbor, were meant to pre- Deutsche Börse...... C3 Marathon Petroleum..A2 T. Rowe Price...... C1 pare the region for the arrival Digione...... B1 Miami Marlins...... D3 Twilio...... C1 Premier Exhibitions Inc., the Premier filed for bankruptcy company says the sale of just of bigger ships. E Mid America Metals...B1 Twitter...... B4 cash-starved company behind protection last week after fac- four artifacts could fetch $10 Currently, the largest ships Emerald Oil...... C2 Mitsubishi Motors...... B3 V the traveling “Titanic” and ing legal challenges and the million or more at an auction. that can visit the New Jersey ter- Encana...... C2 N Vanguard Group...... C2 “Bodies” exhibitions, is asking a early closure of its “Saturday Beginning in 1987, one of minals can accommodate be- F National Amusements Vectors...... B1 bankruptcy judge for approval Night Live” exhibition. Premier Premier’s affiliates worked tween 9,000 and 10,000 20-foot Viacom...... B3 to sell some of its artifacts. has developed other popular with the French government’s equivalent units, or TEUs, a com- Facebook...... B4 ...... B3 Netflix...... B1 Vice Media...... B6 The company says a sale of exhibits—among them “Bodies” oceanographic institute on a mon measure of shipping con- Fair Isaac...... A1 Nidec...... B3 Vistage Worldwide.....B1 some of the “Titanic” artifacts and “The Discovery of King joint expedition to recover tainer capacity. That was more Fast Retailing...... B3 Nissan Motor...... B3 Vivint Solar...... C8 could fetch enough money to Tut”—but its first big hit was roughly 2,100 artifacts over the than enough before the Panama FedEx...... B4 O Volkswagen...... B3,C2 pay back its creditors, return all “Titanic.” course of 32 dives. Canal expansion, when ships that Fiat Chrysler equity to shareholders, and pro- Premier owns more than The company will put the could pass through its locks Automobiles...... B7 One Kings Lane...... B8 X vide funds for Premier through 5,500 artifacts it salvaged from proposal before a judge in the topped out at fewer than 5,000 Ford Motor...... B7 Xiaomi...... B4 P and after the bankruptcy pro- the wreckage of the Titanic in U.S. Bankruptcy Court in Jack- TEUs. But after this month, ships Foxconn Technology....B4 Phlur...... D3 Y cess. Premier owes $12 million a series of expeditions span- sonville, Fla., on July 12. carrying 14,000 TEUs will be G Piper Jaffray...... C2 Yahoo Japan...... B3 to unsecured creditors. ning more than 30 years. The —Lillian Rizzo able to pass through. General Motors...... B7,C2 Porsche Automobil Youku Tudou...... B4 Delays have added hundreds of millions to the bridge raising’s costs, according to a INDEX TO PEOPLE person familiar with the matter. Shipping lines are also A Gou, Terry...... B4 Rabalais, Kenny...... B2 FAA Gets Behind Push paying a price. Arora, Nikesh...... B3 H Rajan, Raghuram...... C3 “The delay takes away the Redstone, Sumner...... B3 Arseneault, Tom...... B6 Hirt, Hans-Christoph..B3 biggest market on the East Rive, Lyndon...... B1 B K Coast,” said Paul Bingham, a Rusch, Colin...... B1 For Wireless Safety Systems port economist with EDR Group Barofsky, Neil...... C3 Kelly, Gary...... B7 Ryzhaya, Katherine....B2 Inc. “As soon as you don’t have Bettman, Gary...... C3 Kinahan, JJ...... C4 S BY ANDY PASZTOR eliminating some of the wiring safety-related applications a New York call, you’re trying to Bourdon, Marc...... B1 Korman, Eric...... D3 Kravetz, Shawn...... B1 Son, Masayoshi...... B3 that now connects many sys- such as a backup for engine justify the economics of the en- C U.S. aviation regulators tems on board jetliners. controls; monitoring the con- tire route. You have to calculate L Souder, Martha...... A8 Carter, Tom...... C4 Stanley, Chuck...... C2 have teamed up with their Eu- Both the FAA and Boeing dition of landing-gear systems; whether or not you can cobble Champagne, Jean-Levy Li, Robin...... B4 Stephens, Renee...... B7 ropean counterparts to de- Co. initially were cool to the detecting dangerous icing on enough demand together to ...... C3 M T velop common standards in notion. The new initiative is airplane surfaces; and alerting make up for losing New York.” Côté, Jean-Francois....C3 Martin, Rob...... A8 harnessing wireless signals for slated to run over roughly pilots about defective airspeed Molly Campbell, the Port Thiam, Tidjane...... C3 D McGrade, Michelle...... C4 a potentially wide array of air- three years. sensors. Authority’s director of com- V Dauman, Philippe...... B3 Mukherjea, Saurabh....C3 craft-safety systems. So far, most public atten- Some backers estimate such merce, said she is “heavily fo- Diess, Herbert...... B3 Mulroney, Brian...... C3 Vandenbulck, Manu....C4 Nearly a year after Airbus tion has focused on en- measures could eliminate cused on getting that bridge Dimon, James...... A8 Musk, Elon...... B1,C1,C8 W Group SE unsuccessfully urged hanced wireless technology to some 220 pounds of wiring on done,” but added that she Donat, Dale...... B1 N Wang, Gerry...... B2 Federal Aviation Administra- the average jetliner. doesn't expect the widened tion officials to join in such ef- European authorities al- Panama Canal to result in Dornhelm, Ethan...... A8 Nagamori, Shigenobu.B3 Wellins, Richard S...... A2 forts, Peggy Gilligan, the ready are developing stan- higher volumes of imports. Driscoll, Shawn...... C1 Nawrocki, Matt...... B1 Whitacre, Morgan...... A8 220 agency’s senior safety official, dards for such wireless appli- “The carriers, their No. 1 G P-R Y has set up an advisory com- Estimated pounds of wiring cations outside passenger concern is the Bayonne Goh, Khoon...... C3 Persson, Karl-Johan...B6 Yanai, Tadashi...... B3 mittee to cooperate with Euro- that the use of wireless signals cabins. Bridge,” said Gerry Wang, Gong Yu...... B4 Pötsch, Hans Dieter...B3 Yang, Andy...... B1 pean experts specifically to could eliminate on the average Now, an RTCA-organized chief executive of Seaspan “provide general guidance to jetliner. panel, led by officials of Airbus Corp., which owns one of the industry” on the topic. and Honeywell International largest fleets of container Musk said. The FAA’s decision became Inc., will seek to ensure there ships in the world and leases TESLA Tesla, burning cash in a race public Tuesday during a meet- improve connectivity for pas- are common standards for them to large shipping lines. to meet ambitious production ing of the top policy-making sengers surfing the web during safety-related uses on both He said his company and targets, isn’t expected to be committee of RTCA Inc., an in- flights. sides of the Atlantic. China’s Cosco Group are Continuedfromthepriorpage profitable until 2020 at the ear- dustry-government group that The Airbus effort is part of The proposed uses also spending about $5 million to rate Governance at the Univer- liest. A deal could force the Palo serves as the regulatory a broader, less well-known ini- raise significant issues about modify 10 ships chartered for sity of Delaware. He said loy- Alto, Calif., auto maker to once agency’s primary think tank on tiative—which includes ri- future aircraft vulnerabilities the Asia-to-East Coast trade so alty is difficult to discern again seek cash with no guaran- technical issues. The goal, ac- val Boeing and several interna- to cyberattacks. As a result, they will fit under the bridge. when directors are on boards tees that capital markets will re- cording to the FAA, is “to en- tional avionics suppliers—to U.S. and European experts Each ship will have its funnel, of both companies in merger main hospitable, analysts said. able improvements in safety research use of on- have been instructed to delve a tube that discharges steam discussions. “One of these Some cash-strapped startups and a reduction in weight” by board wireless signals for into those matters. from its engine, cut down in companies is getting a better often fail to book profits for height, a process that requires deal. Which one is it?” years before eventually becom- the vessel to miss weeks of A SolarCity spokesman said ing successful. Investors bullish service, Mr. Wang said. those who are predicting a on Tesla are betting Mr. Musk ELECT The delay in the Bayonne strain on finances don’t under- will meet his clean-car goals project is “part of the reason stand his company’s business. and effectively challenge tradi- why the ship charter market is “SolarCity is the over- tional auto makers as govern- Continuedfromthepriorpage very sluggish, this uncer- whelming leader in a high ment-mandated fuel-economy ment for the start of new con- tainty,” he said. growth market,” spokesman targets surge in coming years. struction projects. But busi- Shipping-industry experts Jonathan Bass said Wednesday “We think it’s an exciting ness at the 17-year-old firm say the delays may be a tempo- night. “We already have more deal,” said Katherine Ryzhaya, was off by 35% in the first five rary setback, and that demand than $7 billion in estimated chief commercial officer for months of the year, Mr. for Asia-to-East Coast ship- future contracted payments Advanced Microgrid Solutions Nawrocki said. “I don’t think ments is sluggish due to other coming to us, significantly ex- in San Francisco, a company people are horrified if one factors, including weak global ceeding our debt.” that sells energy-storage sys- gets elected over the other,” economic growth. Mr. Musk on Wednesday de- tems. “The more visibility the he said. “They just have to re- McAllister Towing and fended the proposed takeover, sector gets the better, and position.” Transportation Co. Inc. ordered couching the offer as part of a Elon Musk attracts attention.” Overall, small-business con- three custom, high-powered tug long-term plan to create a Still, Wednesday’s Tesla fidence in June fell to its low- boats a year ago to handle clean-energy company that selloff augurs possible tough est level since November 2012, larger container ships that now will take advantage of inexora- sledding for Mr. Musk when reversing all of the gains of may not call in New York Har- ble trends toward all vehicles shareholders vote on the take- the previous three months, ac- bor for years. Each costs be- becoming electric and consum- over plan, which the company’s cording to the WSJ-Vistage tween $10 million and $15 mil- ers tapping the sun for power. general counsel said should oc- Survey. lion to build, said Capt. Steve In a call with analysts, he cur in the next few months. “Firms were much more op- Kress, vice president of McAllis- said acquiring SolarCity was “We expect a robust share- timistic in January and Febru- ter’s New York operations. “an obviously correct move” holder fight over this acquisi- ary of 2015,” when confidence “The announcement of the that would lower costs and tion centered on corporate peaked, said Richard Curtin, a delay of the bridge was a sur-

provide synergies for both pro- governance,” Oppenheimer’s University of Michigan econo- EDMUND D. FOUNTAIN FOR THE WALL STREET JOURNAL prise to us. It’s a disappoint- ducing and selling products to Colin Rusch said. mist who analyzed the data. Kenny Rabalais, owner of the Plant Gallery in New Orleans, says ment,” he said. customers, creating significant Mr. Musk said the discus- He called the number of firms he will reinvest less in his company to create a bigger cushion. long-term value for investors. sions would be above board negatively affected by the NOTICE TO THE HOLDERS “As a combined automotive with independent directors and coming election “quite large,” So Mr. Rabalais, whose 25- 25% lower as clients put off OF and power storage and power shareholders weighing the but added that it is too early year-old firm has 48 full-time second home purchases and generation company...the po- takeover plan. to tell whether it will hold employees, is showing the construction of new homes Banco Central tential is there for Tesla to be —Cassandra Sweet back job growth and invest- same caution. He typically re- until after November. del Uruguay a $1 trillion company,” Mr. contributed to this article. ment. places three of the company’s The downturn has led Ms. Value Recovery Rights Some big companies are 15 vans and trucks each year. Firestone to hold off on plans NOTICE IS HEREBY GIV- also pointing to political un- This year, he’s only swapping to hire another senior de- EN pursuant to the Fiscal Agency Overcast? certainty as a drag on busi- out one, a six-year-old land- signer and two additional em- Agreement dated as of February 19, ness. High-end retailers Nei- scape truck that is the oldest ployees for her 30-person 1991 under which the above Rights Quarterly net income and loss at Tesla Motors and SolarCity. were issued that the Calculation man Marcus Group Inc. and in the fleet. firm; she is also looking to $50 million Agent has prepared and delivered Tesla SolarCity Tiffany & Co. have in recent “It’s a slight restraint to let sublease space currently used to Banco Central del Uruguay a 0 months cited the presidential me see what is going to hap- by her Santa Barbara, Calif., Calculation Report for the Payment Date occurring on July 1, 2016 set- election as weighing on their pen,” said Mr. Rabalais, who office. –50 ting forth for the Reference Period shoppers. plans to reinvest less in his “We have had to make April 2013 - March 2016 the –100 Kenny Rabalais, owner of company this year to hold on quick adjustments, but never following amounts: the Plant Gallery Inc., a garden to a bigger cushion. Sales are before has it been, from my Commodity Terms –150 center, florist and landscape up about 6% so far this year, viewpoint, based on elections,” of Trade Index 19.28160231 Formula Amount US$ 0.00 –200 firm in New Orleans, said cus- below last year’s 20% gain. said Ms. Firestone, whose Los Value Recovery Payment tomers are still going forward The pain is also being felt Angeles-based firm provides in respect of each –250 with planned landscaping by some businesses that nor- interior-design services to Value Recovery Unit US$ 0.00 –300 projects, but are being more mally consider themselves im- high net-worth individuals and By: Citibank, N.A. selective about “fluff” items, mune to political cycles. Sue luxury hotels. “There is a lot as Fiscal Agent 2014 ’15 ’16 such as lighting, fountains or Firestone, owner of 21-year- of nervousness that, as an June 23, 2016 Source: S&P Capital IQ THE WALL STREET JOURNAL. pots at the front door. old sfa design, said sales are adult, I never remember.” For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com THE WALL STREET JOURNAL. **** NY Thursday, June 23, 2016 | B3 BUSINESS NEWS VW Holders Scold Top Management

Investors at annual meeting criticized the auto maker’s executives for poor performance, corporate governance and for accepting big bonuses

BY WILLIAM BOSTON The first investors to take More than 90% of Volks- the podium attacked manage- wagen’s voting stock is held by HANOVER, Germany— ment, calling on Mr. Pötsch to just three core investors: the Volkswagen AG shareholders step down. One called him the heirs of Beetle designer Ferdi- have long waited for their day “personification of a conflict nand Porsche, the state of of reckoning with management of interest.” Another asked Lower Saxony, and Qatar’s sov- over the emissions-cheating whether he felt certain he ereign-wealth fund, all of scandal, and when the annual wouldn’t face criminal charges. which back Mr. Pötsch. meeting got under way Looking down from the po- As a result of the diesel on Wednesday, they wasted no dium, Mr. Pötsch didn’t re- scandal, Volkswagen ultimately time venting their anger. spond. took a charge of €16.2 billion

For months, investors have Mr. Pötsch was appointed ($18.28 billion) against earn- FABIAN BIMMER/REUTERS criticized Volkswagen for slug- chairman of the supervisory ings in 2015 and posted a re- Volkswagen Supervisory Board Chairman Hans Dieter Pötsch talks with annual meeting attendees. gish performance, shoddy cor- board by a court decision in cord €1.58 billion loss. porate governance, big bo- September. In the days after the U.S. €167.80 on Sept. 17, the day be- wageninGermanyfor€3.3 unit. nuses that seemed to ignore “The election of Mr. Pötsch Environmental Protection fore the scandal broke, and billion in damages. The prosecutor didn’t rule the scandal, and the control not only goes against best cor- Agency’s disclosure on Sept. many investors complain that Investors allege that Volks- out expanding the probe to exercised by a clutch of core porate governance practice in 18 that Volkswagen manipu- Volkswagen has a long way to wagen management, including other former board members, shareholders. Germany but gives rise to seri- lated diesel engines to cheat go to become more profitable. Mr. Pötsch as CFO at the time, but said Mr. Pötsch wasn’t un- Their main grievance was ous conflicts of interest. We on emissions tests, shares “We intended to invest in a failed to disclose risks linked der investigation. the appointment of Hans Die- are struggling to understand plunged nearly 50%. Investors, global market leader and what to the impending U.S. investi- The investigation was ter Pötsch as chairman of the how Mr. Pötsch will be able to including major funds such as we got was a global cost gation. prompted by Germany’s finan- supervisory board. As chair- discharge his duties as a mem- Calpers, Norway’s huge oil leader,” quipped Alexander There was more bad news cial markets watchdog, BaFin, man, he is responsible for ber of the supervisory board,” fund, Sweden’s Nordea, and Scholl, fund manager for Deka, this week when state prosecu- which concluded there was ev- overseeing Volkswagen’s in- said Hans-Christoph Hirt, co- Hermes pension fund in the one of Germany’s largest in- tors in Braunschweig opened idence Volkswagen’s manage- vestigation into the diesel af- head of the investment fund U.K., racked up losses. vestment funds. an investigation against for- ment board “willfully withheld fair, including his own actions Hermes EOS. Volkswagen shares In March, attorneys repre- mer CEO Martin Winterkorn information about the diesel as finance chief when the Despite the criticism, Mr. are still trading down 26% senting nearly 300 institu- and Herbert Diess, head of the issue from investors,” a BaFin scandal became public. Pötsch is difficult to depose. from the closing price of tional investors sued Volks- Volkswagen passenger car spokeswoman said. SoftBank’s Chief Perks Up Holders BY ALEXANDER MARTIN Shares of Sprint Corp., the called for him to keep working with a sprawling portfolio that AND MAYUMI NEGISHI struggling U.S. wireless carrier until he is 200 years old. includes significant stakes in that SoftBank acquired in Mr. Son said he reached the Chinese e-commerce behemoth TOKYO—Investors cheered 2013, rose 5.3% Wednesday on decision several weeks ago, af- Alibaba Group Holding Ltd. the decision by Masayoshi Son, the New York Stock Exchange. ter seeking the consultation of and Japanese internet portal chief executive of SoftBank The responses underscored fellow billionaire founders Ta- Yahoo Japan Corp. Group Corp., to stay at the confidence in Mr. Son, the 58- dashi Yanai, chief executive of In recent years, though, Mr. helm of the Japanese internet year-old visionary founder of apparel retailer Fast Retailing Son had begun pondering his and telecommunications com- SoftBank, whose unexpected Co., and Shigenobu Nagamori, succession, and wooed Mr. pany for years to come. turnabout on his succession chief executive of precision Arora from Google two years

HITOSHI YAMADA/ZUMA PRESS SoftBank’s shares gained reflects the difficulty founders motor maker Nidec Corp. Both ago with that in mind. Mr. Son A view of Mitsubishi Motors’ corporate headquarters in Tokyo. 2.6% Wednesday after Mr. Son often face when trying to hand are external directors at Soft- named him as his likely suc- said Tuesday night that Nikesh over the reins of their compa- Bank. cessor last year, giving him the Arora, a billionaire former nies to outsiders. Mr. Son has garnered much No. 2 spot. Google Inc. executive and heir- The 2,000-plus sharehold- respect over the years as he “For me it was a choice of, Mitsubishi Forecasts apparent to Mr. Son, would ers gathered at SoftBank’s an- built SoftBank into one of ‘Do I keep doing this after he step down as president, and nual general meeting Wednes- Japan’s largest mobile-phone declares that he wants to be that Mr. Son would continue to day welcomed Mr. Son’s service providers, while creat- CEO for another five to 10 LargeLossforYear run the company. decision to stay on. Some ing an investment company years?’ ” Mr. Arora said. BY MEGUMI FUJIKAWA The charges include ¥50 billion to compensate owners TOKYO—Mitsubishi Mo- of affected vehicles and ¥100 tors Corp. expects to report a billion for payments to Nissan, loss of $1.38 billion for the dealers and suppliers, as well Judge Delays Viacom Board Ruling current fiscal year as it grap- as fees needed to suspend op- ples with a fuel-economy scan- erations at a minicar produc- BY NATHALIE TADENA petency was through its dis- cludes household brands like dal that has led to surging tion site. AND JOE FLINT covery process before ruling MTV, Comedy Central and Par- costs and falling sales for the Declining sales and the cost on the proposed board amount Pictures. auto maker. of free inspections for affected Viacom Inc. controlling changes. He also said the cases Mr. Bouchard said he was Japan’s sixth-biggest auto vehicles are also likely to sub- shareholder Sumner Red- from the two sides in Delaware staying discovery in Delaware maker by sales faces hefty tract about ¥55 billion from its stone’s plan to replace five di- would be consolidated. to avoid duplicative processes payments to owners of af- operating profit, Mitsubishi rectors at the media giant is The Massachusetts case and to be mindful of Mr. Red- fected vehicles, dealers and said. It expects car sales to de- on hold until it can be deter- stems from National Amuse- stone’s “human dignity.” He suppliers, and to Nissan Mo- cline 8% to 962,000 vehicles mined if the 93-year-old is ments’ removal of Mr. Dauman said he wanted to be “kept tor Co., with whom it jointly this fiscal year compared with mentally competent to make and Viacom board member abreast” of other litigation produced certain minicar mod- the previous year, with sales those decisions, a Delaware George Abrams from a trust surrounding Mr. Redstone that els that were among those for in Japan falling 41% to 60,000. court said on Wednesday. that will oversee Mr. Red- touch on competency issues, which Mitsubishi falsified data The company first admitted National Amusements Inc., stone’s media empire after he including whether discovery is to make mileage appear better. in April to falsifying data re- the holding company through dies or is found to be incapaci- expedited in the Massachu- Mitsubishi has also admitted lated to fuel economy on four which Mr. Redstone controls tated. Besides Viacom, Mr. setts case where a hearing is to using unapproved testing models, so-called minicars Viacom, petitioned the Dela- Redstone controls CBS Corp. scheduled for June 30.

methods on certain vehicles sold only in Japan. Two of ware court last week to affirm Both sides in the Delaware EVAN VUCCI/ASSOCIATED PRESS On Wednesday, Edward Mi- for25years. these minicars, with 0.66 liter its board replacements. Via- dispute have advocated for Viacom CEO Philippe Dauman cheletti, a lawyer for Mr. Sa- Mitsubishi on Wednesday engines, were manufactured com’s lead independent direc- maintaining the status quo lerno, argued for an immediate forecast a loss of ¥145 billion by Mitsubishi and sold under tor Frederic V. Salerno imme- during the legal process, leav- of business on Thursday with a medical examination of Mr. ($1.38 billion) in the 12 Nissan’s brand name. Mitsubi- diately filed a suit to invalidate ing the existing Viacom board potential hearing on the mat- Redstone to establish his ca- months ending March 2017, a shi President Tetsuro Aikawa the dismissals, which included to manage the company day- ter Friday if there are differ- pacity, pointing to his age and figure that includes ¥150 bil- resigned in the weeks follow- himself and Philippe Dauman, to-day but essentially be pro- ences to work out. declining health. Viacom’s Mr. lion of special losses related to ing the revelations. the company’s chairman and hibited from taking any ac- With the Delaware court es- Salerno has charged that Mr. the mileage scandal. Mitsubishi has since admit- chief executive. tions outside of the ordinary sentially taking a back seat to Redstone’s daughter Shari The one-time charge was ted to falsifying data on 25 On Wednesday, Andre G. course of business. The two the Massachusetts discovery Redstone, Viacom’s vice chair- triple the figure given at a models, including those manu- Bouchard, chancellor of the sides still need to resolve exact process, Viacom is left in a man, is orchestrating the company announcement last factured and sold under the Delaware Court of Chancery, terms of what the board can sort of limbo for an indetermi- moves and exerting undue in- week, when Mitsubishi said it Nissan brand. None of its vehi- said he wanted to wait until and can’t do during that time. nate period, dragging out the fluence over her father. Ms. was still calculating the neces- cles sold overseas are affected, another case in Massachusetts Judge Bouchard called for an turmoil in Mr. Redstone’s $40 Redstone has repeatedly de- sary charges. it said. regarding Mr. Redstone’s com- order on the issue by the close billion media empire that in- nied such claims. For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com B4 | Thursday, June 23, 2016 **** THE WALL STREET JOURNAL.

TECHNOLOGY @wsjd | wsjd.com FacebookBecomes Office Break Room

BY LINDSAY GELLMAN like LinkedIn, and often don’t like what they find. A new Pew Research Center Some 29% of workers ages survey on the use of social 18 to 29 came across informa- networks during the workday tion online that lowered their confirms what you probably opinion of a colleague, as did already knew: People visit 16%ofworkers30to49and Facebook and Twitter to take 6% of workers 50 to 64, the a mental break from work. survey said. Pew’s survey of about 2,000 It found that 23% of workers U.S. adults found that employ- 18 to 29, 12% of those ages 30 to ees take work time to like, 49 and 9% of those ages 50 to retweet and endorse for a va- 64 said they discovered some- riety of reasons, only some of thing online that improved their them job-related. opinion of a co-worker. Employees log on to social media from the office for personal and professional reasons 34%

TYRONE SIU/REUTERS and many in between, the sur- Foxconn Chairman Terry Gou also plans to accelerate commercialization of Sharp’s patents to help turn the business profitable. vey found. Portion of surveyed employees The most common reason, who said they log onto social cited by 34% of respondents, is media from the office to take Foxconn Prepares to Cut at Sharp taking a “mental break” from a mental break. the job, according to the survey. Others included connect- Taiwanese company ics maker. Foxconn, formally known as joint ventures, Mr. Gou said. ing with family and friends Employees also appear to Terry Gou, Foxconn’s Hon Hai Precision Industry “Sharp has too many sub- (27%), making professional be shrugging off corporate at- to close inefficient founder and chairman, said at Co., is the world’s largest sidiaries, which results in too connections (24%) or gather- tempts to govern employees’ units after completing the Taiwanese company’s an- electronics contract manufac- much overhead,” he said. ing work-related information useofsocialmedia. nual shareholder meeting turer and a key supplier for Ap- Foxconn posted in May a (20%), the survey said. About half of respondents $3.5 billion acquisition Wednesday that he also plans ple Inc. and other major brands. 9.2% decline in first-quarter Perhaps unsurprisingly, said their employers have poli- to accelerate commercializa- Mr. Gou said Foxconn has net profit to 27.58 billion New plenty of workers said that so- cies governing their use of so- BY EVA DOU tion of Sharp’s patents to help completed legal aspects of the Taiwan dollars ($848.2 mil- cial media can get in the way cial media at work, and 32% turn the business profitable. takeover and new manage- lion), as growth slowed in the of their jobs. Among those said their companies have TAIPEI—Foxconn Technol- “Sharp has lots of technol- ment will oversee Sharp start- global smartphone market. who use social media for guidelines for employee be- ogy Group plans to close inef- ogy but it isn’t able to market ing next month. Mr. Gou said Tuesday that work-related tasks, 56% said it havior online, according to the ficient subsidiaries at Sharp it,” he said. “Turning patents Foxconn plans to close the company faced challenging distracts them from work they survey. Yet 77% of workers Corp. after completing its $3.5 to technology, then turning some of Sharp’s redundant market conditions, including a need to do. said they use social media on billion acquisition of the un- technology to products, that’s and inefficient overseas opera- trend of growing protection- Workers learn about their the job regardless of any em- profitable Japanese electron- what we are good at.” tions, including some sales ism in many countries. colleagues on social platforms ployer policy.

Corp., which Lei Jun, its founder, Digione hadn’t used the money as FAA Levies Two More Fines on Amazon APPLE attributed to timing: “Even a pig it had expected, and initiated an can fly in a whirlwind.” arbitration case against Digione, BY ROBBIE WHELAN corrosive rust stain remover nied by the necessary papers, Many have since gone bank- according to a person familiar from Plainfield, Ill., to Daven- the FAA said Wednesday. The ContinuedfrompageB1 rupt. China’s smartphone mar- with the matter. Baidu won the The Federal Aviation Ad- port, Fla., the FAA said. Workers agency proposed a fine of about their smartphone patent ket growth, in double digits for private arbitration case last year, ministration said it would fine at a FedEx Corp. sorting facility $78,000 for the May, 2014 inci- disputes since 2011. several years, slowed to 2.5% but has yet to recoup its money, Amazon.com Inc. $130,000 for discovered that the product had dent and $52,000 for the later As the smartphone market in 2015 and is expected to be this person said. It has since allegedly mishandling ship- leaked. The next month, Amazon incident. This comes after the matures, devices from different flat this year, according to abandoned the operating-system ments of dangerous chemicals, sent a box containing a flamma- FAA levied a $350,000 fine on brands look increasingly similar, market-research firm IDC. ambitions, the person said. marking three fines in less ble gas used to clean heating and Amazon earlier this month for in China and other markets. A Digione was founded in 2006 Mr. Xu didn’t reply to than two weeks the agency has air conditioning systems, by air a similar alleged 2014 violation. number of the features described by Xu Guoxiang, former con- emails or calls. His brother, Xu penalized the retailer for vio- from Whitestown, Ind., to Glen- An Amazon spokeswoman in Baili’s design are common in sumer-product marketing direc- Shunxiang, who also worked at lating rules related to shipping dale, Calif., the FAA said. said the company had devel- many earlier smartphones, and tor of Huawei Technologies Co. Digione, declined to comment. hazardous materials by air. In both cases, the packages oped “sophisticated technolo- some industry lawyers said an Mr. Xu built Digione to sell other In March 2014, Baili was In May 2014, Amazon shipped containing the product weren't gies” to detect shipping haz- appeals court could decide the brands’ smartphones. Later, the granted a patent from Chinese two boxes containing jugs of a properly marked or accompa- ards in its packages. features aren’t specific enough company shifted to making its regulators for a smartphone de- to warrant a patent for Baili. own phones. sign that had curved edges and a Baidu made a major invest- Baidu had expected Digione rear camera in the left-hand cor- ment in Digione in 2013, accord- to use its investment to de- ner. Leaked images of Apple’s ing to people familiar with the velop a mobile-operating sys- coming iPhone 6 floating online matter. The investment came as tem to compete against rival at the time showed a similar de- Baidu tried to grab a share of systems from Alibaba Group sign—curved edges instead of the the mobile market without de- Holding Ltd. and others, but straight ones of previous iPhone veloping its own smartphone. Mr. Xu instead spent it on models. There were also some Dozens of Chinese startups smartphones and other ven- similarities in button placement. piled into the smartphone cate- tures, according to people fa- —Yang Jie, Juro Osawa CORNER OFFICE gory after the success of $46 bil- miliar with the company. and Jenny W. Hsu lion smartphone startup Xiaomi Baidu discovered in 2014 that contributed to this article. MANAGEMENT MATTERS

EXECUTIVE SUITE

TEAM LEADER DA QING/IMAGINECHINA/ASSOCIATED PRESS A smartphone user browses the app of video service iQIYI, which has seen a jump in paid subscribers.

search firm believes that over On top of better content, ex- VIDEO the next few years, subscrip- ecutives attribute some of the tion revenue will become as growth in video subscribers to important as advertising reve- a crackdown on piracy and the ContinuedfrompageB1 nue for video companies. rise of mobile payments. Chi- and online sources. It comes as The subscriber growth in nese video sites used to be major Chinese video websites the past year came after video sources of pirated videos, but seek new revenue sources be- sites spent billions of dollars now are among the leaders in yond advertising, hoping to re- importing Hollywood movies battling piracy because they verse losses driven by spend- and South Korean soap operas, have more to lose. IQIYI de- ing to acquire content. as well as acquiring and pro- ploys about 100 people to hunt The two other big video ducing Chinese hits. The com- for pirated versions of its vid- sites—Tencent Holdings’ petition for better and exclu- eos; when it finds them, it de-

MAILROOM video division v.qq.com and sive content to attract users led mands that the hosts delete Alibaba Group Holding’s to big losses. Youku Tudou and the content. Youku Tudou—don’t disclose iQIYI have never made a profit. Staffers also prowl social- their subscriber numbers. In- Youku Tudou sold itself to media sites for any mention of ternet research firm iRe- Alibaba earlier this year. the movies’ or TV series’ search Consulting Group says Baidu founder Robin Li and names. that there were 28.8 million iQIYI Chief Executive Gong Yu “We’re a lot more effective Taketheleadfromtoday’sleaders paid online video subscribers made a buyout offer in Febru- in fighting piracy [in China] in China by the end of 2015. ary that valued iQIYI at $2.8 than all big Hollywood stu- That’s a small slice of the billion. Mr. Gong said last dios,” says Yang Xiangdong, Wherever you are on the corporate ladder, The Wall Street Journal’s 504 million online video users week he expects the sale to senior vice president of iQIYI. expanded Management coverage delivers the insights you need–because in China in 2015, according to be completed later this year. Mobile payment services ambitious leaders never stop learning. the state-backed China Inter- Orchestrating the right con- such as Alibaba’s Alipay and net Network Information Cen- tent mix so users want to pay Tencent’s WeChat made it eas- ter. But executives at major isn’t easy. IQIYI started by ier to pay online because many LearntoleadatWSJ.com/management video websites are hoping buying classic Hollywood mov- Chinese still don’t have credit that subscriptions, which ies and U.S. hit television cards and paying on a personal bring in at least 50% more an- shows. These appealed to pro- computer can be cumbersome. nual revenue per user than fessionals in big cities, but For many viewers, though, advertising, will supplement proved too foreign to many it comes back to the content. Sponsored by slowing advertising growth. Chinese youth in smaller cities, Chen Siyao, a graduate stu- Subscription revenue ac- home to iQIYI’s biggest chunk dent at China University of Po- counted for 13% of the indus- of subscribers. The company litical Science and Law in Bei- try’s revenue of 40 billion yuan then bought Chinese movies jing, says the ability to watch ©2016 Dow Jones & Co., Inc. All rights reserved. 3DJ3811 in 2015, up from 5.6% a year and produced many shows on shows first and bypass com- earlier, says iResearch. The re- its own, incurring more costs. mercials motivated her to pay. For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com THE WALL STREET JOURNAL. Thursday, June 23, 2016 | B5

When it happens, it will be built by a team.

Atlassian’s collaboration tools give teams at more than 50,000 companies visibility, mastery, and control to make the stuff of their dreams a reality.

Team Up JIRA Confluence HipChat Bitbucket B6 | Thursday, June 23, 2016 THE WALL STREET JOURNAL. BUSINESS NEWS Vice Media Accelerates Global Expansion

New deals with U.S. in February. diences. The partnership will in- Vice’s rapid international ex- volve the launch of Viceland as a foreign partners focus pansion follows a number of paid TV channel in India with a on broadening reach large-scale investments that mix of local and international have valued the company at al- programming. It also will create of its cable network most $4.5 billion. Late last an Indian branch of Virtue— year, Walt Disney Co. invested Vice’s in-house branded content BY LUKAS I. ALPERT $400 million ahead of the agency that produces content on launch of Viceland, a 24-hour behalf of marketers. Vice Media’s international channel that is a joint venture A similar deal with the Moby rollout is in full swing, with the with A+E Networks. In 2014, Media Group will build local millennial-focused media com- Vice raised $250 million from production operations across pany announcing a raft of deals A+E, which is co-owned by Dis- the Middle East and North Af- that will bring its programming ney and Hearst Corp., and $250 rica. The initial focus will be on into dozens of new markets million from Technology Cross- creating local content for on- across three continents. over Ventures. line and mobile audiences in The deals, announced Founded as a punk ‘zine in the region and will expand into Wednesday by Vice founder Montreal in 1994, Vice grew television in 2017. and Chief Executive Shane into one of the largest digital In the two joint ventures, Smith at the Cannes Lions ad- media companies through a startup costs will be split with vertising festival, include joint heavy focus on video. It is now the local partners who will han- ventures with media groups in making a major push into tra- dle marketing and ad sales India and the Middle East, and ditional television. within their regions, Vice said. broadcasting arrangements in As part of the Wednesday an- A deal with Singapore- Africa, Southeast Asia, Canada, nouncement, Mr. Smith unveiled based Multi Channels Asia will Australia and New Zealand. a joint venture with Indian me- bring Viceland to channels in Some of the deals include dia conglomerate the Times 18 countries in Southeast Asia. online and mobile compo- Group that will involve launch- Vice also has signed a similar nents, but most focus on tap- ing a Vice editorial operation deal with Econet Media to ping new markets for Vice- based in Mumbai later this year make Viceland available via

land, the company’s cable to create local programming for satellite and online in 17 coun- CHRISTOPHER GREGORY FOR THE WALL STREET JOURNAL network that launched in the online, mobile and broadcast au- tries in sub-Saharan Africa. Vice Media’s offices in Brooklyn. The company is making a major push in traditional television.

ADVERTISEMENT Legal Notices Turbulent Times Spark New Spin To advertise: 800-366-3975 or WSJ.com/classiﬁeds In Advertising, Marketing Industries NOTICE OF SALE

BY STEVEN PERLBERG half of brands, encroaching on Mr. Smith’s Vice Media be- off, isn’t equivalent to a TV ad. the turf of traditional agencies. lieves it has the solution. The “Traditional media, linear !!"# All advertising isn’t dead. The WSJ panel, titled “Ad- company has been the poster TV, [and] newspapers in their $$% & '$( )* Just bad advertising. vertising is dead; Long live ad- child of “branded content,” old form are more effective +# , % -- - % That was the conclusion vertising,” also featured WPP catapulting Vice to an almost from an engagement point of . /- % 0 1!2 3! 4 5!! 6 $ - - , 7 from Brad Jakeman, president PLC CEO Martin Sorrell, Vice $4.5 billion valuation. Vice view,” Mr. Sorrell said. ( , 7 $ 2 8 of PepsiCo’s global beverage Media LLC CEO Shane Smith works with marketers to cre- Still, Mr. Sorrell said that # 4! 2 , 72 7 !!!9: group, speaking at and Facebook Inc.’s ate custom videos that feel 75% of his company “is stuff - ( The Wall Street Jour- vice president of Eu- like regular editorial fare, and that Don Draper wouldn’t rec- 139 33 2 , 72 7: nal panel during the rope, the Middle East Mr. Smith said that viewers ognize,” referring to the fic- annual Cannes Lions and Africa, Nicola don’t mind watching spon- tional ad executive from the - . - * advertising festival Mendelsohn. It was sored content as long as it is 1960s-based television show . .$ ; %( moderated by The actually compelling. & '$( <. 2 - $% =2 in the South of “Mad Men.” Out of the $73 bil- 3! >: 8 . ? France. Wall Street Journal’s “The ubiquitous 30-second lion that WPP spent for clients % $ ? $ “We are here cele- editor in chief, Gerard spot doesn’t work,” he said. If last year, about $4 billion $( $ 2 %( * brating 0.5% of the Baker. Vice were to come up with a went to Google and $1 billion $ - 2 ( %* work that actually gets One of the biggest movie about climbing a moun- to Facebook, Mr. Sorrell said. / ?$ - , - %: made. The other 99.5% topics at Cannes this tain, it would approach North This year, WPP will spend of the work is gener- week has been how to Face for a branded deal, Mr. about $5 billion to $5.5 billion , , -$ ally crap. And when Martin Sorrell win consumers’ at- Smith said. with Google and $1.7 billion .. 2 /$ % that happens, consum- tention amid a swiftly Facebook’s Ms. Mendelsohn with Facebook. /- % $ - 5 @( @$ 3 3# =3A*44=3 ers don’t want to see it,” Mr. changing technology land- said consumers respond to ad- As for the future, Mr. Smith $B$:$ Jakeman said. scape and backlash against a vertising that is “targeted” for predicted a “culling” among Cannes Lions began as a perceived overload of adver- them, and that the problem is media outlets, as brands figure way for the creative ad com- tising. too many ads are irrelevant to out where to spend their munity to honor the best ads Mr. Jakeman said that with the consumers who see them. money and media companies but has more recently shifted the rise of digital advertising While Facebook collects a vast scramble for those dollars. into a weeklong rosé-fueled and the 30-second TV ad feel- amount of consumer data to “There’s going to be a con- deal-making session. ing more like a relic of a by- make its targeting capabilities solidation in media,” Mr. This year’s gathering, how- gone era, brands are com- more robust, “privacy is the Smith said. “Only the strong LEGAL NOTICES ever, comes during a particu- pelled to churn out hundreds No. 1 thing that we think survive.” ADVERTISE TODAY larly precarious time in the ad of pieces of work. But that is about,” she said. industry. More consumers are diminishing the quality of the Mr. Sorrell, who runs the EXPLORE ONLINE using tools that block web ads. marketing and creating a “dig- world’s largest ad-holding com- (800) 366-3975 | [email protected] Marketers are concerned about ital landfill” of “crap content pany, defended traditional me- Get the latest Place an ad at: wsj.com/classifieds the transparency of how their that gets produced quickly and dia, noting that videos on Face- news, analysis on dollars are spent by ad agen- cheaply and doesn’t connect to book, where a “view” is counted WSJ media and cies. And new-media pioneers the brand’s narrative,” he ar- after 3 seconds and users .COM advertising at © 2016 Dow Jones & Company, Inc. are producing content on be- gued. mostly watch with the sound WSJ.com/CMO All Rights Reserved.

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BY GAUTHAM NAGESH Overall, the study found that car manufacturers con- Kia Motors Corp. topped a tinue to improve their vehi- U.S. survey of new-vehicle cles, despite more technologi- quality, while Detroit’s three cal features that range from auto makers continued to automatic braking to adaptive make significant gains. cruise control and voice-acti- South Korea’s Kia is the vated commands. first nonluxury brand in nearly “What we’ve seen is that three decades to land atop J.D. the Korean brands have been Power’s Initial Quality Study, really outpacing all the com- which polls new-car buyers’ petition,” said Renee Ste- complaints during the first phens, a vice president at J.D. three months of ownership, Power, adding that their sys- the researcher said on tems are generally simpler. Wednesday. Detroit’s three auto makers Improved entertainment, collectively had fewer prob-

communications and naviga- lems than their foreign coun- TIMOTHY A. CLARY/AFP/GETTY IMAGES tion systems from South Ko- terparts for just the second A hoverboard in New York last December. A U.S. regulator said the devices and their hazards were a case of being ‘caught off guard.’ rean and U.S. auto makers time in the 30-year history of lifted scores across the board, the survey. General Motors it said. European and Japanese Co., Ford Motor Co. and Fiat auto makers generally lagged Chrysler Automobiles NV’s U.S. Seeks Better Product Safety behind on that front, J.D. brands improved scores 10% Power found. from 2015, double the rate of Amid talks in Beijing, include the need for better in- tracking down some manufac- Alibaba Group Holding Ltd.’s The annual survey of new- most foreign brands. formation on product develop- turers of the products. Taobao and Tmall marketplaces, car buyers gave high marks to GM had seven models that regulator points ment and an early buy-in from When hoverboards became to bear the burden to some ex- Porsche AG, Hyundai Motor ranked highest in their seg- to lessons learned Chinese manufacturers on popular in mid-2015, safety tent by enforcing U.S. standards Co., Toyota Motor Corp. and ments, including the Chevrolet building in safety standards. concerns focused on the haz- and staying apprised of safety BMW AG. This year’s average Silverado full-size pickup on hoverboards Hoverboards “represented ards of users falling, not the issues. “They make a lot of number of problems reported truck, the Chevrolet Spark all of us getting caught off fact that the boards might money off these products,” he was 105, compared with 112 small car and the new Buick BY ALYSSA ABKOWITZ guard by a product that came catch fire. That meant users said. “We’ve put pressure on defects a year ago. Cascada convertible. out of nowhere…with a hazard faced two dangers, he said. them to own some of this prob- Fiat Chrysler’s Jeep and BEIJING—The quick surge in pattern that was not antici- The electrical design in the lem.” Mr. Kaye said the commis- Chrysler nameplates were the sales of hoverboards last holi- pated,” commission chairman scooters didn’t take into ac- sion is thinking about safety Top-Ranked Brands most improved brands overall, day season—and the surprising Elliot Kaye told reporters in count the weight of the user— concerns for items such as The best performing auto reducing problems signifi- propensity of some of them to Beijing, where he was discuss- meaning a 100-pound person wearable technology and 3-D brands calculated by cantly from 2015. Ms. Ste- catch fire—are helping U.S. reg- ing product safety with Chinese could get on a hoverboard cal- printers. “If you’re making a toy complaints per 100 vehicles. phens said both significantly ulators create a template for officials. Mr. Kaye said his ibrated for a 250-pound per- on your 3-D printer, how do you improved the smoothness of improving product safety in the agency plans to announce an son and the scooter might ex- know it’s compliant with the Kia 83 their automatic transmissions, future. unspecified “major action” on plode while being used. federal toy standard?” he asked. Porsche 84 an area where they previously The chairman of the U.S. hoverboards early next month. Mr. Kaye said the commis- He also pointed to his smart- struggled. Consumer Product Safety Mr. Kaye credited China’s sion, along with the Chinese watch: “This thing measures my Hyundai 92 But the Fiat brand came in Commission said Wednesday product-safety agency for re- quality-supervision administra- heart rate, which is great and Toyota 93 second to last, ahead of Daim- that lessons learned in the sponding promptly to the U.S. tion and the European commis- convenient, but ultimately is ler AG’s Smart cars, with its several months since the commission’s concerns that sion for product safety, also ex- something going on with this BMW 94 owners experiencing roughly agency blocked the sale of lithium-ion batteries in hover- pects e-commerce sites, thing interacting with me that’s Chevrolet 95 60% more problems than the many self-balancing scooters boards were catching fire and including Amazon.com Inc. and not healthy?” average vehicle. Fiat Chrysler Buick/Lincoln/ 96 Lexus said results for the Fiat brand Nissan 101 were skewed by limited models and a small sample size. Ford 102 According to J.D. Power, Southwest CEO Says Competition Picking Up GMC/Inﬁniti 103 roughly half of owners say ex- BY SUSAN CAREY terminal opens in Fort Lauder- pected reliability is the most dale, Fla., next year. Source: J.D. Power 2016 Initial Quality Study important consideration when The U.S. airline industry is Southwest recently won au- THE WALL STREET JOURNAL. buying a new vehicle. growing faster than the gross thority to fly to a couple of domestic product, and that secondary Cuban airports and has created “some real pockets hopes to win approval to serve of aggressiveness throughout Havana, once the Transporta- the country,” Southwest Air- tion Department chooses lines Co. Chief Executive Gary among the many competing Kelly said on Wednesday. applications. Lower fuel prices, rapidly Mr. Kelly said in an inter- expanding discount carriers view that Southwest tied its and the improved financial application for Havana autho-

health of the major airlines PATRICK T. FALLON/BLOOMBERGrization NEWS to the route rights to has led to more flights and Workers unload a Southwest flight at California’s John Wayne Airport. the small airports. If it doesn’t lower fares, he said. win any flights to Cuba’s capi- Southwest, the nation’s No. in 2014 when it increased its integrated some of AirTran’s tal, he said, the company will 4 airline by traffic and the big- number of flights at Dallas Caribbean and Mexican routes have to decide whether to pro- gest hauler of domestic pas- Love Field by 50% after fed- into its own operations. ceed with the smaller destina- sengers, is growing at a rela- eral flight limits on that field Today, Southwest’s flights tions. tively fast clip, with a capacity were lifted. to 11 international destinations He noted that Southwest increase of nearly 5% in the The airline is adding inter- account for just 3% of the air- had no history on which to

BRYAN THOMAS/GETTY IMAGES current quarter. national routes, something it line’s capacity, but it plans to base its forecast for Cuban The 2017 model of the Kia Cadenza at the New York International But that expansion is the didn’t do until it acquired Air- make additions, particularly flights, so it “guessed” on its Auto Show. Kia Motors led a survey of new-vehicle quality. continuation of a trend begun Tran Airways in 2011 and later when its new international route application.

Weather TheWSJDailyCrossword| Edited by Mike Shenk Shown are today’s noon positions of weather systems and precipitation. Temperature bands are highs for the day. Edmontondt 40s <0 1234 567 89101112 69 “Such a pity!” 26 Answer to the 50s Little Red Hen VancouverV 0s 13 14 15 16 70 Mule’s pop CalgaryCalgC ary 10s 71 One of tow in 28 Off the hook Winnipegip 17 18 19 60s Seattle 60s 20s this cule 30 Sought-after PorPPortlandd 70s 20 21 22 23 Down items Helenal Montreal 30s Bismarckk Ottawa Billings 70s AAugustag t 40s 24 25 26 27 28 1 Terrific time, 32 Calypso, e.g. Eugeneg Boisei informally 80s Mpls./St.s./St. PaulPau TorontoT t AAlbanybanybany Boston 50s 35 Pay a visit 29 30 31 32 33 90s Siouxoux FFallsll Buffalo Hartfordtford 60s 2 London Pierre Milwaukeek Detroitt 37 Not 15-Down Newew Y Yorkk ChicagoChicCh g ClevelandCleve d 70s 34 35 36 37 setting Reno Salt LaLakeLakek CityC CCheyenneh y Deses Moines 39 Words Pittsburghb h Omahah PhPhiladelphiah dlhilp 80s 38 39 40 3 Tigers, e.g. Sacramento Springfieldp ifildIndianapolisd p following an Denver Washingtonh g on D.C.D.CDCC 90s 4 “Same goes estimate Sanan Franciscoi ToTopekap k Kansas St.. LouisLou CColoradod City 41 42 43 44 LLas Springspgp CharlestonChlt Richmondh d 100+ for me,” 40 Charcoal Vegas LouLLouisville 100s Wichitah Nashvilleh ill Raleighliihgh 45 46 47 48 49 50 tersely LosA AngelesAnge 43 He was SantatFaF Fe CChCharlotte l tt 5 Paloma’s pal Memphishi 100s 51 52 53 54 55 originally Officer 100s PPhoenixh Albuquerque Oklahoma City San Diego Little Rock AtlAtlanta t CColumbiabib Warm Rain 6 CBS honcho Alex Murphy TucTucson ElP Paso Birminghamih 56 57 58 59 60 Ft. Worth DllDallas JacksonJack Moonves Cold T-storms 44 Pranks with 90s Mobilebil Jacksonville 61 62 63 64 65 7 One might rolls, for short 100s AustinAti 60s Houstont Stationary Snow contain lava Neweww Orleans Orlandold 66 67 68 45 Classic Fords 50s 70s 80s Sanan Antonio Tampa 8 “The Lord did 69 70 71 46 Ring star AnchorageA h g Honolulull 100s Miami Showers Flurries there confound 70s the language” 47 Cedes the floor Ice ALTERED STATES | By Samuel A. Donaldson 9 Prime minister 49 Southwest overseeing the construction U.S. Forecasts Today Tomorrow Today Tomorrow Across 27 Willamette 51 License checked City Hi Lo W Hi Lo W City Hi Lo W Hi Lo W Naikaku 52 Lightened s...sunny; pc... partly cloudy; c...cloudy; sh...showers; 1 It’s Mongolian for Valley surgery in the Gem Omaha 90 69 pc 91 74 pc Frankfurt 89 66 s 89 66 t t...t’storms; r...rain; sf...snow flurries; sn...snow; i...ice site? State’s capital? 10 Checkers 54 Eyes Orlando 94 75 t 94 76 t Geneva 87 64 t 87 61 t “waterless place” Today Tomorrow command Philadelphia 79 63 t 85 62 s Havana 89 71 pc 88 73 pc City Hi Lo W Hi Lo W 5 Gain competition 29 Utter rot 53 “Wow, that’s 58 One of Emeril’s Phoenix 111 87 pc 110 87 s Hong Kong 93 84 s 92 84 pc pretty!” 11 Tesla’s rival restaurants Anchorage 67 52 s 66 55 c Pittsburgh 79 61 t 82 62 s Istanbul 88 74 s 88 74 s 8 Swelters 31 Scott Turow’s 55 Storage units: 12 Married mujer Atlanta 93 75 s 93 76 pc Portland, Maine 75 54 pc 76 55 s Jakarta 89 74 s 89 75 t 13 Med. sch. course first book 60 It’s pitched in Austin 93 70 s 94 75 pc Portland, Ore. 65 54 sh 68 53 sh Jerusalem 88 71 s 89 72 s Abbr. 15 Not 37-Down the woods Baltimore 83 65 t 84 60 s Sacramento 92 58 s 94 63 s Johannesburg 63 39 pc 63 36 s 14 Series of courses 33 Warrior armed Boise 90 57 s 73 49 pc St. Louis 96 74 pc 94 78 pc London 73 58 t 70 54 sh with a chakram 56 Serious vexation 18 Shows for the 62 “...blessing ___ Boston 7460sh7661s Salt Lake City 96 68 pc 91 56 s Madrid 94 64 s 94 62 s 16 Bear curse” 34 Teeming with 57 When Iago bade first time Burlington 76 54 pc 80 59 s San Francisco 72 57 s 74 56 pc Manila 90 79 t 91 78 t 17 Way of doing Charlotte 97 74 pc 92 70 t Santa Fe 91 58 t 95 61 t Melbourne 56 43 sh 50 43 sh souvenir stands Cassio return 22 Job interview 64 Battleship Chicago 74 58 pc 83 64 s Seattle 65 53 sh 63 54 sh Mexico City 72 54 t 74 57 t things in the 59 Very start topic letters Cleveland 78 61 r 82 60 s Sioux Falls 84 64 pc 90 72 pc Milan 93 71 s 94 74 s Gateway to the 36 Local order 24 New York dance 65 “Well, well, Dallas 97 76 s 95 77 s Wash., D.C. 87 68 t 83 68 s Moscow 76 60 pc 76 61 pc West? 38 Charm City 61 Moves, in co. well!” Denver 88 61 t 90 60 t Mumbai 87 77 sh 87 79 sh physician? realty-speak Detroit 82 57 c 85 59 s International Paris 85 65 s 72 57 s 19 Nation east of Honolulu 84 73 sh 84 73 pc Rio de Janeiro 75 64 c 72 63 pc Togo 63 Military boss in Previous Puzzle’s Solution Today Tomorrow 41 “Hoping to find,” Houston 94 76 pc 94 76 t Riyadh 109 86 s 110 85 s the Rockies? City Hi Lo W Hi Lo W 20 On the edge of in personal ads PDQ SAY I T PROAM Indianapolis 86 66 t 86 67 s Rome 86 67 t 88 68 s 66 Death Row I OU TEETH COPTO Kansas City 92 72 pc 87 74 t Amsterdam 80 65 t 71 56 t San Juan 87 76 pc 88 79 pc 21 Present 42 Use the Jaws of PROWARSAW BLEED Records PATER LAD FRAU Las Vegas 108 83 pc 109 83 s Athens 93 78 pc 92 76 s Seoul 86 70 pc 79 66 r Life on 23 Mil. aide IDES PROCUREALL Little Rock 97 79 s 97 78 t Bangkok 90 78 t 88 78 t Shanghai 93 81 t 93 73 t co-founder NOD L E I KO I TOE Los Angeles 79 59 pc 81 60 pc Beijing 95 69 pc 91 66 s Singapore 90 81 c 88 79 pc 45 Texter’s sign-off 24 Story told over 67 Under other BONGO POETS Miami 89 78 t 90 79 pc Berlin 86 66 pc 90 68 s Sydney 65 53 s 63 46 s PROSANDCONS Milwaukee 71 59 pc 78 64 s Brussels 85 67 t 73 55 t Taipei 95 80 t 94 81 t several episodes 48 Disgusted circumstances BEHAN SALUT Minneapolis 77 64 pc 86 74 pc Buenos Aires 61 47 s 61 45 s Tokyo 79 69 r 77 72 c outbursts USO I TS TAT D I V 25 You might be 68 Caustic soda, CONTESTBAN TUBE Nashville 97 76 t 95 74 t Calgary 74 53 s 67 48 sh Toronto 8159pc8160s movedbyit 50 Barber’s belt chemically OBER A I L F I VER New Orleans 91 75 s 92 77 pc Dubai 108 88 s 106 87 s Vancouver 61 55 c 65 57 sh LEDER CONGOCART

New York City 76 64 r 82 63 s Dublin 67 50 sh 62 49 sh Warsaw 8463pc8869s s ISIAH KOREA LIE Oklahoma City 97 72 s 94 73 s Edinburgh 68 49 sh 63 50 sh Zurich 87 63 s 87 64 t Solve this puzzle online and discuss it at WSJ.com/Puzzles. CONDO SMALL LAX For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com B8 | Thursday, June 23, 2016 **** THE WALL STREET JOURNAL. BUSINESS NEWS ¡Hola! Looks to U.S. for Growth Retailer’s Results The Spanish celebrity Hello! in 1988 after seeing some English women leafing magazine aimstotap through ¡Hola! while taking tea Fall Short the growing Latino at Harrods in London. He turned Hello! into a British market in new strategy publishing mainstay. Of Targets For a multinational com- BY MATT MOFFETT pany, ¡Hola!’s offices in central BY MARIA ARMENTAL Madrid have a distinctly down- MADRID—Long before Peo- home feel. Mr. Sánchez Pérez Bed Bath & Beyond Inc.’s ple magazine or TMZ were grew up in a second-floor quarterly profit and margin chronicling the antics of A- apartment above the news- declined as the home-goods listers, the glossy Spanish room. “My father used to say retailer reported nearly flat magazine ¡Hola! was practic- we were like ranchers who slept sales in the May quarter. ing its own colorful style of above the cows,” he recalled. The results missed Wall celebrity journalism. Street targets, sending shares During seven decades, ¡Hola! has proven down 5% to $40.86 in after- ¡Hola! perfected a simple for- hours trading. mula: big pictorials of celeb- far more resilient Still, the New Jersey-based rity weddings and baby chris- than most of its company affirmed its profit tenings, along with relentlessly projection for the year, saying upbeat personality profiles. competitors. it expects results “to be com- Publishing 30 editions, from fortably” within its previous the U.K to the Philippines, range of $4.50 to about $5 a ¡Hola! snared scoops on stars A sister edits the Mexican share despite higher costs tied such as Angelina Jolie and edition and his 95-year-old to its acquisition of online fur- Tom Cruise, but also gained grandmother keeps a hand in nishing store One Kings Lane. fame for what it refused to run fashion coverage. A niece aims Like other retailers, Bed on its oversize pages. to carry on the family tradi- Bath & Beyond’s margins have When paparazzi offered tion. been hurt by sales promotions ¡Hola! topless photos of Prin- “Unlike many family-run and a shift away from tradi- cess Diana in 1994, it bought companies, the succeeding tional brick-and-mortar stores. them, declined to print them generations at ¡Hola! have In the most-recent period, and then destroyed the nega- adapted with the times and ended May 28, gross margin tives so no one else could pub- moved the company forward narrowed to 37.4% from 38.1% lish them either. despite the bad economy and a year earlier. Now ¡Hola! is in the midst of the crisis in the [publishing] The company’s faltering re- a multimedia push into the U.S. industry,” said Maria Ganzabal sults have added pressure and market—a bold strategic bet Learreta, a journalism profes- weakened its stock, down 11% by the family-run company. sor at the University of the this year and 39% during the In 2013 ¡Hola! launched a Basque Country. past 12 months. Last year, TV channel in Miami that now The weekly circulation of shareholders voted down the

reaches 11 million Latin Ameri- DENIS DOYLE/GETTY¡Hola!’s IMAGES Spanish print edition company’s executive compen- can and one million U.S. A copy of Spanish celebrity magazine¡Hola!on sale in 2011 in Madrid. Aspartofa U.S. multimedia has declined 30%, to 379,000, sation package. The vote is households. In March it strategy, the family-run companyisslated to launch a Spanish-languagemonthly edition in August. since 2008, due to the Euro- nonbinding. opened a newsroom in Brook- pean economic slump and the This year, the company is lyn staffed with 20 journalists that likes to see other people’s tent of interest to Latinos of di- only has about half a dozen rise of digital media. But again facing pressure from In- to write for a predominantly success and know them better.” verse national origins—Mexican major Spanish language life- ¡Hola! has proven far more re- stitutional Shareholder Ser- Spanish U.S. website, which The size and diversity of Americans concentrated in the style and celebrity maga- silient than most of its com- vices and Glass Lewis & Co., publishes original local con- the U.S. Latino population western U.S., Cuban Americans zines—mostly notably People petitors, increasing its share along with New York City tent along with material from make the trans-Atlantic push in the South and Puerto Ricans en Español. People declined to of the overall Spanish maga- Comptroller Scott M. Stringer, other ¡Hola! sites world-wide. unlike any other challenge in the East. Other analysts ques- comment. zine market to about 13% from as administrator of the city’s A Spanish-language U.S. print ¡Hola! has faced. “It’s not go- tion whether a magazine so def- ¡Hola! was founded in 1944 9%, during those same pension funds, who have asked edition will start monthly pub- ing to be a walk through the erential to its subjects can thrive in the living room of Mr. Sán- years, according to Spain’s cir- shareholders to reject again lication in August. royal garden, even for people in today’s harsher-edged me- chez Pérez’s grandfather. In culation auditing agency. the company’s executive com- ¡Hola! is wagering heavily as experienced as ¡Hola!,” said dia age of snark and sex tapes. those dark days of World War To compensate for the pensation plan, vote against on the growing clout of the Samir Husni, director of the Cristy Marrero, head of II, ¡Hola! built a following by weakness in Europe, ¡Hola! has several board nominees and 55-million-strong U.S. Latino University of Mississippi’s ¡Hola!’s U.S. editorial opera- unapologetically trafficking in expanded its international op- support a so-called proxy-ac- market. Magazine Innovation Center, tions, said the more than one escapist fare, what the maga- erations, which account for cess initiative, allowing share- “It’s a symptom of healthy who did some paid consulting million unique monthly visitors zine calls la espuma de la about half of its revenues. As a holders to nominate members society that ¡Hola! is present,” for ¡Hola! when it was prepar- already reading ¡Hola!’s U.S. vida, “the froth of life.” private company Hola declined to the company’s board. said Eduardo Sánchez Pérez, ing its move to the U.S. website are proof that there is Mr. Sanchez Pérez’s father, to share revenue figures. The company’s annual the third generation editor. “It Mr. Husni said ¡Hola! would a craving for celebrity news. Eduardo Sánchez Junco, ¡Hola! claims 25 million shareholder meeting is sched- means there’s a middle class be challenged to develop con- Ms. Marrero said the U.S. started a U.K edition called weekly readers world-wide uled for July 1. THE SHORT ANSWER by Willa Plank and Jess Kuronen Is It a Smooth Ride for Theme Parks?

Most major theme-park operators have seen revenue grow over recent years as they invest in new attractions tied to brands including Harry Potter. Companies are also focusing on markets outside North America. Stock Price Cedar Fair has recovered from a stock drop and Six Flags Entertainment stock has climbed since listing on the NYSE after emerging from chapter 11. Meanwhile SeaWorld stock has taken a hit. $60 $60 $60

40 40 40 SeaWorld Cedar Fair

20 20 20

Six FlagsFlagsSix 0 0 0 ’14 ’15 ’16 ’11 ’12 ’13 ’14 ’15 ’16 2000 ’05 ’15’10

Revenue Six Flags plans to open branded parks in Dubai, Vietnam and China.

$1.50 billion $1.50 billion $1.50 billion

1.25 1.25 1.25 SeaWorld

Six Flags Cedar Fair 1.00 1.00 1.00 ’122011 ’13 ’14 ’15 ’122011 ’13 ’14 ’15 ’122011 ’13 ’14 ’15

Universal’s theme parks got a boost from the new Harry Potter Diagon Alley attraction which opened July 2014. Disney's Shanghai park opened this month. Theme-park revenue:

$16 billion $16 billion Domestic 12 12

8 Disney 8

4 International 4

0 0 Universal FY 2011’12 ’13 ’14 ’15 2012’13 ’14 ’15 Notes: Disney's ﬁscal year 2015 ended Oct. 3. Stock data as of Tuesday’s close. Source: FactSet (stock prices); the companies (revenue) THE WALL STREET JOURNAL. For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com IN THE MARKETS C4 | MARKETS DIGEST C5 | HEARD ON THE STREET C6

Blame Canada’s Better Crisis Response Currency Global group pushes new mutual-fund rules FUNDS | C2 FINANCE | C3 MICHAEL NAGLE/BLOOMBERG NEWS © 2016 Dow Jones & Company. All Rights Reserved. **** THE WALL STREET JOURNAL. Thursday, June 23, 2016 | C1

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Low Tech BofA, SEC in Settlement Talks Number of U.S.-listed tech IPOs with a market value of at least $1 billion at time of offering Bank of America’s investigating whether Bank of lion to $450 million would At issue is a rule aimed at set aside in segregated reserve America had proper controls make the accord one of the ensuring that investment funds, known as “lockup” ac- 70 payment of up to for some customer accounts largest ever for the SEC. It banks and trading firms recounts. 60 $450 million would be and retail brokerage funds. also would be the largest since serve enough cash and easy- Minimizing the billions of One of the issues is whether a $616 million penalty paid by to-sell securities so that if the dollars idling in lockup is at- 50 one of SEC’s largest the bank used complicated affiliates of SAC Capital Advi- lenders fail, they are able to tractive to banks; that frees up 40 trades and loans to free up bil- sors LP in 2013. readily repay what they owe money for activities such as 30 BY JENNY STRASBURG lions of dollars in cash for its The Wall Street Journal customers. The rule, called trading. own uses that it would ordi- first disclosed details of the 15c3-3—part of the Securities The SEC investigation has 20 Bank of America Corp. has narily have had to set aside to SEC probe in April 2015. In Exchange Act of 1934—re- focused broadly on the accu- 10 been in discussions with U.S. meet regulatory requirements, February, Bank of America quires financial firms to calcu- racy of Bank of America’s regulators about paying $400 people familiar with the in- said in a regulatory filing that late at least weekly what they lockup calculations over the 0 million to $450 million to set- quiry said. A settlement could it was cooperating with the owe to clients through liabili- course of multiple years, ac- ’00 ’10 tle allegations it violated rules be announced as soon as SEC on the matter and was in ties such as deposits, com- cording to people familiar Note: 2016 year to date through Tuesday designed to safeguard client Thursday. discussions about a potential pared with what clients owe with the matter. One factor in Source: Dealogic accounts, according to people Representatives for Bank of resolution. The settlement them, through assets such as the probe has concerned the THE WALL STREET JOURNAL. familiar with the matter. America and the SEC declined amount under discussion loans. accuracy of the bank’s state- The Securities and Ex- to comment. hasn’t been reported previ- The more a bank owes cli- ments to the SEC about its change Commission has been A settlement of $400 mil- ously. ents, the more it is required to Please see BOFA page C2 Twilio Solar Buy Pricing Won’t Help $20 billion Signals North American oil-and-gas Tesla Meet company follow-on share sales Its Goals this year, a record Optimism BY CHARLEY GRANT ForTech Visions of a future domi- BY CORRIE DRIEBUSCH nated by electric cars long have powered Tesla Motors’ Twilio Inc. raised more stock price. Sooner or later, than it expected in its initial the reality of corporate fi- public offering, an optimistic nance is likely to intervene. sign for the dozens of other Tesla’s offer to acquire so- technology companies that lar-energy company Solar- have been valued at more than City brings this $1 billion in private fundrais- HEARD issue to the ing. ON THE forefront. Shares in the San Francisco STREET Though de- company’s IPO priced at $15 tails on the fi- apiece, raising $150 million by nancial benefits selling 10 million shares, the of the proposed tie-up are company said in a release late scant, Tesla chief Elon Musk Wednesday. was his usual bold self on a The offering from Twilio conference call with ana- comes during a tough patch lysts Wednesday. He said for younger, private technol- that the proposed deal could ogy companies as some of help Tesla become the their valuations in private world’s first company with a fundraising rounds have fallen trillion-dollar market capital- in recent months. ization. That would require a It also comes as U.S.-listed

more than 30-fold increase SPENCER PLATT/GETTY IMAGES IPOs are on track for their from today’s value. A pump jack in the Permian Basin town of Andrews, Texas. Companies say drilling there can be profitable even at low oil prices. worst year since the financial Yet that boast may not be crisis. the most jarring one Mr. Many investors from Silicon Musk has offered of late. Energy Stock Sales Reach a Record Valley to Wall Street were for Powered by the new Model 3 that reason watching to see mass-market sedan, Tesla where Twilio (pronounced aims to deliver 500,000 vehi- BY RYAN DEZEMBER Resources Inc. and Canada’s new shares—for oil-and-gas are using the cash to acquire TWILL-ee-oh) priced its offer- cles in 2018, Mr. Musk said Birchcliff Energy Ltd. an- producers for all of last year, land, a growth move that for ing. last month. That target is Stock sales by two North nounced offerings late Tues- according to a Wall Street investors blunts the sting of The company last sold two years ahead of the pre- American oil-and-gas produc- day that brought to more than Journal analysis of Dealogic adding more shares. shares to private investors at vious goal. Tesla forecasts ers vaulted the sums raised by $20 billion the total in North data. Along with QEP’s $367 mil- $11.31 a share, according to a 80,000 to 90,000 deliveries such deals this year to record American oil-and-gas company The share-sale activity, lion share sale, the company regulatory filing, valuing the this year. levels, while further cement- share sales this year. That fig- coming with a rebound in oil disclosed it is buying about company at about $1 billion. In a world of slow growth ing the southwestern Permian ure tops the record of roughly prices, shows stock investors’ 9,400 acres of Permian Basin Those investors will want to and cautious corporate-man- Basin as the U.S. oil patch’s $19 billion raised in follow-on faith that crude prices won’t drilling property in West see Twilio shares trade above agement teams, bold ambi- hottest region. stock offerings—in which al- falter again. Also, many of the Texas for about $600 million. that level. Please see TESLA page C2 Denver-based driller QEP ready-public companies sell companies selling shares lately Please see BASIN page C2 Please see IPO page C2 Central Banks Ready to Move The $50 Billion Commodities Bear Being a bear can be lonely. a major sector can reverberate he said, calling it a cyclical rally BY RICHARD BARLEY Janet Yellen cited “Brexit” That isn’t Shawn Driscoll’s across the firm. amid a grim long-term trend. Big Dipper specifically when the central problem. At the end of the first quar- “We’re looking at this as hope Everyone from Barack Change in 10-year yields since bank held rates steady last The natural-resources fund ter, the firm’s 70 stock funds, trade No. 2 in a long bear.” Obama to George Soros and start of year week. manager at T. Rowe Price be- with $382 billion in assets, had The basis for Mr. Driscoll’s soccer superstar David Beck- Stocks and commodities lieves we are in a 10- to 15-year just over half of the market’s bearishness is rising productiv- 0 percentage points ham has had something to are expected to rally on a bear market in energy and ity in commodities production, say about Thursday’s U.K. vote to remain. But once the commodities. He has positioned which reduces costs and vote on the European Union. –0.2 Brexit boogeyman is out of his own $5.2 billion in assets pushes producers to drill more. Now it comes the way, and assuming the largely against a Couple that with fast turn- AHEAD OF down to those –0.4 U.S. labor market doesn’t de- rise in prices. So arounds in shale drilling, new THE TAPE who really liver another nasty sur- far that has near-shore projects in places matter: mil- –0.6 prise next Friday, it may be worked out well. like Norway and rising produc- lions of U.K. income investors’ turn to Mr. Driscoll’s tion in Iran and other coun- voters. –0.8 worry. A rush into bonds has influence ex- tries, and supply will stay Polls point to a knife-edge made prices of income-pro- UNHEDGED tends far be- strong for years. vote just tilted toward re- JapanU.S. Germany U.K. ducing assets look frothy. KEN yond his own “We always say when the maining in the EU. A vote to Source: FactSet Rather than making an un- BROWN funds, making productivity ends, that’s when leave will have consequences THE WALL STREET JOURNAL. wise bet on an unpredictable him one of the we get bullish,” Mr. Driscoll that could be felt around the vote, though, investors most important, said. world. Polls close when all likely will be to deploy reas- should look past this binary if unknown, energy bears in the Today’s near-$50 price al- major stock and bond mar- suring words. They also may outcome. Apart from Brexit, market. T. Rowe Price collec- ready is enticing companies to kets are closed, but the re- have to provide monetary the biggest battle of the year tively has about $50 billion in- T. ROWE PRICE start drilling again, and Mr. sult of a close vote may only comfort blankets. But these has been between markets vested in energy and natural Shawn Driscoll has Driscoll expects that to con- come to light around the are increasingly threadbare. and the Fed over the path of resources across its diversified tinue. It is a classic prisoner’s time Europe opens for trad- Even if the vote is to re- U.S. rates. So far, the market stock funds. Many fund manag- influence beyond the dilemma among energy compa- ing. A vote to leave probably main, however, central banks has been winning and it is ers at the firm, impressed by funds he manages at nies. Being the first to start a would spark a flight from will be in the spotlight. The still betting on lower rates Mr. Driscoll’s conviction and new well is a sign to investors risky assets world-wide. focus will move from the U.K. for longer. detailed historical work on T. Rowe Price. that a company believes it has The U.K. itself runs a gap- to the U.S., from sterling to On that, at least, it is safer commodities markets, have fol- the lowest costs. And drilling ing current-account deficit, the dollar, and from lower to go with the wisdom of the lowed his advice. first allows the company to making it vulnerable to a cri- bond yields to the efforts by crowd than pointy-headed That gives Mr. Driscoll lots 6.8% weighting in energy. That reap the benefits of low costs sis of confidence. If its citi- the Federal Reserve to re- experts. of company. And pressure. is a big negative bet for a ma- from contractors who are des- zens vote to leave, then cen- sume the halting rise of in- T. Rowe Price, which had jor mainstream firm. perate to put assets to work. tral banks’ first response terest rates. Fed Chairwoman Email: [email protected] $765 billion in assets at the end As oil tumbled from $100 to “We think we’re very close to of the first quarter, has bet its just over $30, Mr. Driscoll was incentive pricing, that’s why INDEX Credit Markets...... C6 Exchange-Traded Funds...... C8 Heard on the Street...... C8 Mutual Funds...... C8 own future on the ability of a genius. Oil has since re- rigs are coming back,” he said. Cash Prices...... C7 Currency Trading...... C5 Finance Watch...... C3 IPO Scorecard...... C8 New Highs & Lows...... C4 fund managers to beat the bounded to nearly $50. “I just Then there are unexpected Commodities...... C7 Dividend News...... C3,6 Global Finance...... C3 Money Rates...... C8 Stock Listings...... C4,6 market. A big bet for or against don’t think we should be here,” Please see BEAR page C4 For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com C2 | Thursday, June 23, 2016 **** THE WALL STREET JOURNAL. MONEY & INVESTING Tougher Rules for Mutual Funds Urged

Global group seeks to the safety of the mutual-fund illiquid during a crisis. stress in financial markets,” the financial crisis to coordi- Commission to announce new improve ability of industry, which many regula- The 24-nation body, whose Federal Reserve governor Dan- nate global regulatory efforts to proposals aimed at requiring tors fear could be a spark for members include leaders of the iel Tarullo, who leads the FSB’s identify and minimize sources funds to report their holdings asset managers to the next financial crisis. The Federal Reserve and Bank of Standing Committee on Super- of systemic risk that could de- more regularly and cracking respond to crises importance of mutual funds as England, also called on regula- visory and Regulatory Coopera- stabilize financial markets and down on their ability to use de- providers of credit to large tors in the U.S. and Europe to tion, said in a statement accom- harm economic growth. rivatives. The SEC, which is the companies has grown in recent consider systemwide “stress panying the report. “They will While funds generally have principal regulator of invest- BY DAVE MICHAELS years as global banks have tests” for asset managers and also help authorities obtain a been resilient during periods of ment funds, also wants them to withdrawn from their tradi- for new rules restricting the better understanding of the market stress, the FSB wrote, maintain a minimum cushion of Mutual funds should have tional role as buyers and sellers ability of funds to hold harder- trends and risks associated their share of ownership of cor- cash or cashlike assets, a plan the ability to lock up investors’ of debt. to-sell assets. The recommen- with asset management activi- porate bonds has risen sharply the industry has rebelled funds or charge shareholders The FSB’s proposals could dations were included in a re- ties within and across jurisdic- in recent years. At the same against. for withdrawals if they urgently affect asset managers that port that outlines how tions.” time, the global banks have re- Yet the SEC has struggled to need cash to ride out a crisis, oversee trillions of dollars in regulators in the U.S., Europe The FSB’s reports are closely treated from their traditional sketch out how mutual funds according to a new set of policy investor funds, including Black- and other wealthier countries watched because they can influ- role as the shock absorbers of should stress test their portfo- recommendations from a panel Rock Inc., Vanguard Group should approach oversight of ence policy in the U.S., where market selloffs, largely because lios. The 2010 Dodd-Frank Act of global regulators. and State Street Global Advi- the $31 trillion mutual-fund in- asset managers such as Black- of regulations that make it required the SEC to develop Released Wednesday, the sors. The board, based in Basel, dustry. Rock and Fidelity Investments more expensive for them to such methodologies, but regu- plan from the Financial Stabil- Switzerland, said funds have “The proposed policy recom- have clashed with supervisors hold the debt. lators have agonized over how ity Board in some cases goes herded into sporadically traded mendations are designed to en- over how strictly they should The sustained attention to to apply consistent tests to beyond what U.S. regulators assets that can be sold during hance the resilience of asset be regulated. The FSB was asset management already has funds that have different strat- have proposed for bolstering good times but might become managers and funds to future formed in 2009 in the wake of led the Securities and Exchange egies. Banks Caution Clients on Forex

BY GEORGI KANTCHEV dict currency moves on Thurs- AND JENNY STRASBURG day, it has suspended sterling transfers to “protect customers Concerned by currency vola- from rate volatility.” tility, financial-services compa- Currency markets were nies in Britain are stopping or largely calm Wednesday, with advising against foreign-ex- the pound broadly un- change transactions dur- changed against the dollar. On ing Thursday’s European Union Monday, sterling had soared 2% referendum, a sign of how this against the dollar, its biggest vote is disrupting the world’s rally against the U.S. unit since financial plumbing. 2009. Currencies from the yen In recent weeks, worries that to the euro also have been vola- a British exit from the EU tile as opinion polls show the would stoke global economic two camps moving ahead or be- uncertainty has roiled financial hind in this vote. markets, spurring wild swings If the U.K. votes to leave the

JOHN PHILLIPS/GETTY IMAGES in the pound, euro and other EU Thursday, the pound could Jeff Lawson, co-founder and chief executive of Twilio Inc., speaks at a conference in London last year. currencies and pushing banks fall as much as 20%, according to warn of more volatility to to HSBC, and may rise as much Even if Twilio pops on its that WhatsApp “has no obliga- technology companies, includ- come. as 4% if Britons decide to stay, IPO first day of trading and re- tion to provide any notice” to ing Uber Technologies. That has prompted banks to ING estimates. mains in positive territory, few Twilio if they choose to stop If and when these compa- caution clients against taking For transfer companies, the expect it to be a catalyst for a using Twilio’s services en- nies turn to the public mar- large positions in a market danger is the pound moves in Continuedfromthepriorpage rush of tech IPOs in what has tirely, meaning that 17% of kets, investors may value their where currencies could gyrate between a customer setting up Twilio has a market capital- been the slowest year for U.S.- revenue could drop to zero companies at a lower level and liquidity may dry up. Those a transfer and paying the ization of $1.2 billion, more listed tech IPOs—and IPOs in without advance notice, the than prior financing rounds, nerves have extended to the money that will cover it. than what it was valued in its general—since 2009, accord- filing showed. some analysts and investors high street, where currency-ex- Moneycorp, a U.K. foreign- previous financing round. ing to data from Dealogic. What could help Twilio’s of- warn. change and money-transfer ser- exchange provider, said it will Twilio, which enables de- Jeff Clavier, a managing fering is that T. Rowe Price Square Inc., a recent highly vices proliferate given a large switch off its online opera- velopers to build applications partner at SoftTech VC, said Associates Inc. is named in the anticipated U.S.-listed venture foreign-born population and the tion on Thursday evening and that can interact with custom- Silicon Valley will be watching prospectus as a current share- capital-backed IPO, sold shares British love of holidays abroad. bring it back sometime Friday. ers, whether it’s messaging, Twilio’s trading activity this holder that has indicated an in its offering in November at This is causing anxiety for “Nobody knows what the result video or voice, counts as cus- week and rooting for it, but interest in purchasing up to a level that was below where both professional traders and will be, so we have to be pre- tomers Uber Technologies Inc. “it’s too small to be a huge 1.5 million shares of Twilio’s they were previously valued people who want to move pared either way,” said Mark and HubSpot Inc., among oth- bellwether for everyone.” IPO. by private investors. Square money to and from Britain and Horgan, its chief executive. ers. Mr. Clavier, who was an In recent years, many tech shares are down 2.4% from are worried about being caught London-based online money- Its platform, for instance, early investor in one of 2015’s companies have steered clear their IPO price of $9. on the wrong side of a big transfer firm Azimo said it, too, allows Uber passengers to call highly anticipated IPOs, FitBit from the public markets, in Twilio is set to begin trad- move in the pound. would suspend transfers on or text their drivers by con- Inc., added, “The advice from part because they were able to ing on the New York Stock Ex- Lina Mikolajczyk, a U.S. citi- Thursday due to the “unprece- necting the company’s mobile most bankers is hang out and easily raise money at high val- change under the symbol zen living in London, recently dented circumstances” pre- app to the phone network. wait til 2017 for a better mar- uations in private fundraising “TWLO” on Thursday. Twilio’s received an email from U.K.- sented by the referendum. “We “The product has absolutely ket.” rounds, an environment that first few days of trading could based money-transfer service don’t want to gamble with peo- revolutionized how apps can Some analysts and money analysts and investors have be volatile for stocks, as U.K. TransferWise. ple’s hard-earned money,” said be built and revolutionized managers looking at the IPO said could be changing. voters are set to decide “The exchange rate is likely Michael Kent, its chief execu- how apps can be used,” said questioned how much Twilio Indeed, mutual funds that whether to leave the European to be volatile,” the email said, tive. David Rudow, a senior equity can grow. hold shares of private compa- Union on Thursday. noting that it will stop sterling- With more than one in 10 research analyst at Thrivent Last year, one customer, nies have marked down some The offering was led by to-dollar transfers from 6 people living in the country for- Asset Management, who has WhatsApp Inc., accounted for of these holdings, including T. Goldman Sachs Group Inc. and p.m. local time on Thurs- eign-born, the U.K. is the met with Twilio management 17% of Twilio’s revenue, ac- Rowe Price, which in the first J.P. Morgan Chase & Co. day until when the referen- fourth-biggest source of mi- previously and was looking at cording to a regulatory filing. quarter marked down many of —Maureen Farrell dum’s results come in Friday. grant remittances globally. The the IPO. Concerning some analysts is its investments in private contributed to this article. Ms. Mikolajczyk transfers U.K. sent $25 billion abroad in pounds to her U.S. bank account 2014, according to World Bank every month. data, and much of that is han- The “email made me realize dled through money-transfer- BOFA I have no backup,” she said. ring services. A TransferWise spokesman —Jasmine Horsey said that because it can’t pre- contributed to this article. Continuedfromthepriorpage lockup practices, the Journal has reported, citing people fa- because stacked layers of en- miliar with the matter. BASIN ergy-bearing rock beneath the As the Journal previously surface allow for large enough reported, the SEC has looked volumes of oil and gas to come at, among other things, trades Continuedfromthepriorpage from each well. done through Bank of Amer- Analysts said QEP’s Perm- Meanwhile, in another sign ica’s Merrill Lynch unit since ian acquisition represents one of renewed expectations of 2009 that helped the bank re- of the highest, if not the high- shareholder enthusiasm for duce what it held in lockup, est, price paid for such assets, oil, Centennial Resources De- according to people familiar and suggested the company velopment Inc., which drills with the trades. In April 2015, may be overpaying to boost its on 42,500 Permian acres in

Bank of America said: “These JOHN LEYBA/THE DENVER POST/GETTYholdings IMAGES there. West Texas, said in a regula- transactions, which began at Tesla Motors’ proposed buy of SolarCity will strain its financial profile. Here, a Colorado showroom. Tudor, Pickering, Holt & tory filing late Wednesday Merrill Lynch before the ac- Co., the Houston investment that it plans an initial public quisition by Bank of America, That could be the case in a year. Volkswagen an- bank, put the price per acre offering. No oil producer has received extensive review and TESLA given quarter, but analysts at nounced last week that it between $55,000 and $60,000, debuted on a major U.S. stock approval. The firm fully com- Barclays forecast 2016 free plans to develop around 30 “establishing a new high wa- exchange since June 2014, ac- plied with the rules designed Continuedfromthepriorpage cash flow at negative-$1.8 different electric models termark in the basin,” where it cording to Dealogic. to safeguard client funds.” tion is a central part of billion. As for Tesla, Barclays over the next 10 years, with said many recent deals have The share-sale boom for en- Bank of America bought bro- Tesla’s appeal to investors. expects the auto maker to the goal of electric cars ac- been in the $30,000-an-acre ergy producers accelerated kerage firm Merrill Lynch in But reaching for the stars burn $2.1 billion without counting for one-quarter of range. The price leaves “little last year, when these compa- 2009. has proved expensive. much improvement over the total company sales. upside for shareholders,” the nies were dealing with the One variety was internally Tesla’s core business has coming two years. The com- True, these companies bank said. sharp fall in oil prices. They called “leveraged conversion,” burned more than $3 billion bined company could burn don’t carry the same type of Analysts with Piper Jaffray mainly sold stock to boost according to people familiar in cash over the past six up to $3.4 billion in 2018, brand cachet with electric- & Co.’s energy arm, Simmons their cash holdings and pay with the trades. In that strat- quarters. Capital needs are before factoring in the finan- car enthusiasts. But the big & Co. International, shared down debt. Buyers of some egy, a small team on Bank of expected to intensify over cial impact of the merger. auto makers have much similar sentiment: “The trans- deals found themselves on the America’s New York equities the coming years. No sur- Tesla has issued equity or more financial resources at action does screen expensive.” losing end as share prices fell. desk arranged for a handful of prise there; automobile man- convertible debt in every their disposal to compete on QEP didn’t respond to re- Two companies, Emerald clients to put up token ufacturing is a low-return, year since 2010, most re- price, should they choose to. quests for comment. Chuck Oil Inc. and Goodrich Petro- amounts of their own money capital-intensive business. cently last month. Further And Tesla won’t be able to Stanley, the company’s chair- leum Corp., that sold new to receive loans of nearly 100 The SolarCity transaction stock issuance will be need- justify its valuation over the man and chief executive, said stock in 2015 have filed for times those amounts, the peo- could further pressure ed to close the SolarCity long term without becoming in a statement the acquisition bankruptcy protection this ple said. Tesla’s financial profile. Mr. deal, and if Barclays’s math a major presence in the mass “broadens our footprint in a year. The bank would arrange Musk said Wednesday that is correct, the coming years market. world-class crude oil basin” This year, as oil prices have large trades that suited other Tesla would be willing to won’t be any different. All this would be manage- and will boost QEP’s oil pro- recovered—up 33% in 2016— financing needs it had, reduc- provide a bridge loan to So- Continuing dependence on able for investors, were duction growth and operating stock offerings have been used ing its funding costs and the larCity before the deal closes capital markets access hasn’t Tesla not valued as though efficiency. QEP’s shares fell to help pay for acquisitions. amount it set aside in lockup if needed, although he hurt Tesla shares yet. An its ambitions already have 5.9%, to $18.19, on Wednesday, Birchcliff sold more than $500 reflecting what it owed cli- thought such a scenario to easy-money investing envi- been achieved. The shares slightly below the offering million of stock this week as it ents, the people said. The bank be unlikely. ronment and pioneering trade at more than 120 times price. agreed to buy drilling fields in did billions of dollars’ worth Still, even the possibility products helped. But compe- forward adjusted earnings, A Permian focus for energy northwest Alberta from En- of such trades from 2009 to of such a loan should raise tition is intensifying. Gen- according to FactSet. companies has appealed to in- cana Corp. On Wednesday, 2012, they said. eyebrows. Mr. Musk said eral Motors is set to begin Incessant cash burn and vestors. Birchcliff’s shares fell 5.6%, to —Christina Rexrode and Wednesday he expects Solar- selling the Chevrolet Bolt, an looming competition is Companies have said drill- 6.42 Canadian dollars ($5.01), Aruna Viswanatha City to be cash-flow positive electric car with 200 miles hardly a trillion-dollar for- ing can be profitable there slightly higher than the offer contributed to this article. within three to six months. of driving range, later this mula. even at low commodity prices price. For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com THE WALL STREET JOURNAL. Thursday, June 23, 2016 | C3 GLOBAL FINANCE

Swiss Bank’s Israel Unit Examined Finance Watch BY JOHN LETZING recently implemented U.S. For- ment of Financial Services, who kinds of legacy issues.” riod leading up to Credit Su- eign Account Tax Compliance is assigned with investigating After Credit Suisse was noti- isse’s 2014 guilty plea and the ZURICH—U.S. authorities are Act. the bank’s dealings with U.S. fied of the Justice Department’s period following it, a person fa- investigating Credit Suisse Banks including Credit Suisse customers. The monitor, who new probe focused on the Israel miliar with the matter said. The Group AG’s Israeli operations, have sought to bulk up on re- still is scrutinizing Credit Su- office, the bank began its own May 2014 plea brought to a EXCHANGES people familiar with the matter lated compliance efforts to en- isse, has been made aware of internal investigation, people close a Justice Department in- said, again placing the Swiss sure clients with U.S. ties—even the new inquiry, a person famil- familiar with the matter said. vestigation that had lasted sev- Deutsche Börse, bank under Justice Department those with citizenship in addi- iar with the matter said. Without mentioning Israel, a eral years. LSE Deal Backed scrutiny related to its handling tional countries—are flagged. The investigation is another Credit Suisse spokeswoman said The U.S.-based monitor in- The proposed $30 billion of American clients. The new probe comes potential headache for Credit the bank is conducting an inter- vestigating Credit Suisse on be- merger of Deutsche Börse AG The Justice Department re- roughly two years after Credit Suisse as it struggles to revamp nal employee-conduct investiga- half of the New York Depart- and London Stock Exchange cently notified Zurich-based Suisse pleaded guilty in the U.S. under Chief Executive Tidjane tion “related to tax matters,” ment of Financial Services, Neil Group PLC has won backing Credit Suisse of the investiga- to conspiring to help American Thiam, who took over roughly a and that five employees have Barofsky, started his oversight from two influential shareholder- tion, which is focused on deter- clients evade taxes. Credit Su- year ago. Mr. Thiam has sought been placed on leave. She de- of the bank in October 2014 and adviser services, even if Britain mining whether employees in isse agreed to pay $2.6 billion to curb riskier, more costly in- clined to comment further. was meant to remain in place— votes to leave the European Israel helped dual Israeli and to various regulators as part of vestment-banking businesses Credit Suisse had earlier at the bank’s expense—for no Union. U.S. citizens conceal their U.S. its settlement and entered into and to bolster wealth-manage- confirmed its internal probe to more than two years. However, Institutional Shareholder status to evade American taxes, a plea agreement stipulating it ment operations with a sharper the Swiss newspaper Schweiz the bank’s struggles in provid- Services Inc. and Glass, Lewis & the people said. would close accounts of U.S. cli- focus on compliance. am Sonntag. ing Mr. Barofsky with all of the Co. in recent days sent notices Information about foreign ents who fail to report their as- “We aim to operate going A Justice Department information he has required to LSE investors supporting the banks’ clients who are identi- sets for tax purposes. forward at the highest levels of spokeswoman declined to com- about its business with U.S. cli- deal, asserting that the stock-ex- fied as American now must be Credit Suisse also agreed to compliance,” Mr. Thiam said at ment. ents may extend his tenure. change operators are a good fit. automatically transmitted to supervision by a monitor, se- a recent news conference. The Justice Department’s ex- —Laura Saunders The recommendations by ISS U.S. tax authorities, under the lected by the New York Depart- “From the past you can find all amination is focused on the pe- contributed to this article. and Glass Lewis are significant because LSE needs 75% of its shareholder base to approve of the transaction at a meeting July 4. A Shaky Loonie “We consider the strategic underpinnings [of the merger as] relatively straightforward,” Glass Lewis said, adding LSE in- Checked Quebec’s vestors shouldn’t base their vote on the uncertainties associated with the Brexit referendum Thursday. ISS urged LSE inves- Bid for NHL Team tors to support the transaction because the “rationale to merge BY CHELSEY DULANEY Quebec’s bid. to create the largest exchange “We knew that we were group by income is compelling.” When Quebec lost its bid not going to get our team —Eyk Henning for a new National Hockey back,” said lifelong Nordiques League franchise on Wednes- fan Jean-Francois Côté, 51 AMERICAN EXPRESS day, fans were quick to finger years old. “The U.S. dollar a longtime nemesis of Cana- factor is a big one and people Move Seeks to Boost dian sports teams: their in Canada are aware of the Use of Chip Cards country’s often weak cur- difference. If the league fee is American Express Co. said it rency. $500 million, the exchange would limit the costs of fraudu- The NHL announced that it rate makes a huge differ- lent credit-card transactions for is awarding the rights for a ence.” U.S. retailers as they upgrade new team to Las Vegas. The Even former Canadian their systems to begin accepting desert city beat out a pas- Prime Minister Brian Mul- chip cards. sionate effort by Quebec City roney recently ruminated Visa Inc. and MasterCard Inc. to win the expansion slot and about how the currency situ- recently said they would speed revive the Nordiques fran- ation could sink Quebec’s bid up the certification process of chise. Quebec’s former NHL for the new NHL team. chip-reading checkout terminals team left in 1995 to become “For a team like Quebec, Above, the Quebec Nordiques play the Rangers in 1995; the mascot of the Montreal Expos in 2004. and limit costs to merchants the Colorado Avalanche. with the exchange rate…it during the transition from old A lot of factors go into de- presents challenges for us was slightly longer,” he ac- cards with magnetic stripes. cisions about where to put a all,” he told the Canadian knowledged. While the loonie AmEx’s announcement fol- team—population size and newspaper La Presse earlier had declined against both the lows widespread complaints growth, recruiting pull and this month. Mr. Mulroney is dollar and British pound in from merchants. As of last Octo- geographic diversity—and now chairman of Quebecor recent years, its drop against ber, retailers that didn’t make Canada can be on the wrong Inc., the Montreal media con- the pound had been less pro- the transition to chip cards have end of many of them. glomerate that led the effort nounced. been on the hook for counterfeit But it doesn’t help that to bring a franchise to Que- Jean-Levy Champagne, co- transactions that previously Canada’s dollar has been so bec. owner of the Royal de Mon- were covered by card-issuing volatile and much weaker Quebec City joins a roster tréal professional ultimate banks. —Tess Stynes than its American counter- of soccer, baseball and even disc team, said around 30% of part in recent years. The de- ultimate Frisbee teams north the team’s expenses are in cline pushes up a Canadian of the border that have strug- U.S. dollars, including league team’s costs, many of which, gled at times under the fees, gear for the team, travel including players’ salaries, weight of a weak loonie. costs and per diems to cover are in U.S. dollars. Most of The Montreal Expos left players’ food expenses when their revenue, meanwhile, is for Washington after the the team plays in the U.S. in Canadian dollars, also 2004 season, in part because Mr. Champagne said he known as loonies. After mov- of escalating currency woes. watches the loonie’s exchange ing above parity with the U.S. The loonie’s fall also was a rate closely and times big

dollar a few years ago, the factor in the departure of the (TOP TO BOTTOM): KEVIN LARKIN/ASSOCIATED PRESS;DAVID BOILY/MLB PHOTOS/GETTY IMAGES purchases for when the cur- loonie fetches only 78 U.S. Vancouver Grizzlies basket- rency appears to be strong. cents right now. ball team for Memphis fol- when traveling in the U.S. for year to save on expenses. Mr. One day this spring, he During a news conference lowing the 2001 season. games to cut costs, head Miller estimated the move bought 800 Frisbees from his Wednesday, NHL Commis- FC Edmonton of the North coach Colin Miller said. saved Edmonton as much as U.S. supplier after the loonie sioner Gary Bettman said the American Soccer League The team went so far as to C$30,000 over last year’s had notched a 1.8% gain

“state and volatility of the sometimes rents minivans in- move its March preseason preseason games in Jackson- against the U.S. dollar over ANDREW HARRER/BLOOMBERG NEWS Canadian dollar” undermined stead of chartering buses tournament to Scotland this ville, Fla., “though the trip the prior month. AmEx wants to spur chip cards.

Amount Payable / Dividend Changes Company Symbol Yld % New/Old Frq Record Dividend announcements from June 22. First Tr NASD Rising Div RDVY 2.7 .1395 Q Jun30 /Jun24 Pressure QTEC First Tr NASDAQ 100Tch Sc 1.2 .1263 Q Jun30 /Jun24 Amount Payable / First Tr NASDAQ ABA Cm Bk QABA 1.6 .1514 Q Jun30 /Jun24 Company Symbol Yld % New/Old Frq Record First Tr NASDAQ Glbl Auto CARZ 5.0 .3973 Q Jun30 /Jun24 First Tr NASDAQ100EqWt QQEW 0.7 .0713 Q Jun30 /Jun24 Increases Increased FPE First Tr Preferred Secs 5.6 .0884 M Jun30 /Jun24 Fulton Financial FULT 2.9 .10 /.09 Q Jul15 /Jul01 First Tr RBA Quality Incm QINC 2.5 .1391 Q Jun30 /Jun24 Waterstone Fincl WSBF 2.1 .08 /.05 Q Aug02 /Jul12 First Tr S&P REIT FRI 2.1 .1233 Q Jun30 /Jun24 Initial First Tr SCap Cr AlphaDEX FYX 0.7 .0829 Q Jun30 /Jun24 On Rupee FTSL Bank of America Pfd EE BACpA .375 Jul25 /Jul01 First Tr Senior Loan Fd 3.8 .15 M Jun30 /Jun24 FT RiverFront Dyn AP RFAP .0764 Jun30 /Jun24 First Tr SSI Strat Cv Sec FCVT 1.4 .03 M Jun30 /Jun24 First Tr Strat Income ETF FDIV 3.9 .16 Jun30 /Jun24 BY SHEFALI ANAND FT RiverFront Dyn Dev RFDI .5454 Jun30 /Jun24 M FT RiverFront Dynamic Eur RFEU .7053 Jun30 /Jun24 First Tr Sw AlphaDEX FSZ 8.0 .7885 Q Jun30 /Jun24 IQ 50% Hdg FTSE Japan HFXJ .31822 Jun28 /Jun24 First Tr Tactical Hi Yd HYLS 5.4 .215 M Jun30 /Jun24 MUMBAI—India’s rupee has iSh Intl Div Growth IGRO .18194 Jun27 /Jun23 First Tr Tech AlphaDEX FXL 0.7 .0571 Q Jun30 /Jun24 First Tr UK AlphaDEX Fd FKU 3.1 .3064 Jun30 /Jun24 been the worst-performing iSh MSCI Emerging Multi EMGF .1259 Jun28 /Jun24 Q iSh Sust MSCI Gl Impact MPCT .23013 Jun28 /Jun24 First Tr US IPO FPX 1.1 .1433 Q Jun30 /Jun24 major Asian currency this First Tr Util AlphaDEX FXU 2.6 .1682 Q Jun30 /Jun24 year, and, with a change com- Funds and investment companies First Tr Val Line (R) 100 FVL 0.9 .0455 Q Jun30 /Jun24 1st Tr Cnsmr Dsc AlphaDEX FXD 1.1 .0948 Q Jun30 /Jun24 First Tr Val Line Div FVD 2.2 .1456 Q Jun30 /Jun24 ing atop the central bank and Alerian Engy Infr ENFR 4.6 .24354 Q Jun29 /Jun24 First Tr Vl Ln Eqty Alloc TUSA 1.0 .0629 Q Jun30 /Jun24 sizable foreign-currency re- ALPS Cohen Gbl Realty GRI 2.8 .3122 Q Jun29 /Jun24 First TrEmergingMktsSmCap FEMS 3.9 .2852 Q Jun30 /Jun24 payments pending, it is poised ALPS Emg Dividend Dogs EDOG 4.5 .24074 Q Jun29 /Jun24 First Trust AU AlphaDEX FAUS 0.3 .0201 Q Jun30 /Jun24 ALPS Equal Sector Weight EQL 2.0 .28988 Q Jun29 /Jun24 First Trust Emg Mkt Local FEMB 7.6 .27 M Jun30 /Jun24 to lose more value in coming AMIT DAVE/REUTERS ALPS Intl Sector Div Dogs IDOG 7.5 .43802 Q Jun29 /Jun24 First Trust L/S Equity FTLS 0.9 .0679 Q Jun30 /Jun24 weeks, analysts said. India’s rupee is Asia’s worst-performing major currency this year. ALPS Sector Dividend Dogs SDOG 3.5 .34467 Q Jun29 /Jun24 FirstTr STOXX Eur Sel Div FDD 13.6 .4091 Q Jun30 /Jun24 The rupee has fallen about Elkhorn FTSE RAFI US Equ ELKU 3.1 .20465 Q Jun28 /Jun24 Fst Tr VI Multi-Asset Div MDIV 7.9 .126 M Jun30 /Jun24 Elkhorn S&P 500 Cap Exp CAPX 0.7 .04086 Q Jun28 /Jun24 FT Asia Pacific ex Japan FPA 1.7 .1141 Q Jun30 /Jun24 2% against the U.S. dollar in ecutive of the institutional-eq- its Asian and other emerging- First Tr BICK Index Fund BICK 0.5 .0241 Q Jun30 /Jun24 FT Brazil FBZ 5.1 .1467 Q Jun30 /Jun24 2016. Late Wednesday in uities business at Mumbai bro- market peers. At the time, in- First Tr Cap Strength FTCS 1.4 .1427 Q Jun30 /Jun24 FT China FCA 3.3 .1484 Q Jun30 /Jun24 Mumbai, the currency was kerage Ambit Capital Pvt. Ltd. vestors had expected the In- First Tr Cda AlphaDEX Fd FCAN 1.1 .066 Q Jun30 /Jun24 FT Developed Markets FDT 3.6 .4136 Q Jun30 /Jun24 First Tr Cnsmr Staples FXG 3.1 .3593 Q Jun30 /Jun24 FT Dorsey Wright Focus 5 FV 0.3 .0165 Q Jun30 /Jun24 trading at 67.50 per dollar, ac- The Indian currency has dian government to deliver First Tr Dev Mkt SmCpADEX FDTS 2.8 .2315 Q Jun30 /Jun24 FT Emerging Markets FEM 4.0 .1866 Q Jun30 /Jun24 cording to broker Tullett Pre- fallen 0.7% since Mr. Rajan’s major policy changes to boost First Tr DJ Globl Sel Dvd FGD 8.3 .4689 Q Jun30 /Jun24 FT Enhanced Shrt Maturity FTSM 1.0 .05 M Jun30 /Jun24 bon. departure was announced. the economy. First Tr DJ Sel MicroCap FDM 2.1 .1756 Q Jun30 /Jun24 FT Eurozone AlphaDEX FEUZ 6.2 .4798 Q Jun30 /Jun24 First Tr Energy AlphaDEX FXN 1.5 .0573 Q Jun30 /Jun24 FT Heitman Prime Real Est PRME 3.2 .166 Q Jun30 /Jun24 By comparison, the Japa- Mr. Rajan has been credited “We’ve had some portfolio First Tr Europe AlphaDEX FEP 6.1 .4422 Q Jun30 /Jun24 FT Low Duration Opps LMBS 3.0 .1275 M Jun30 /Jun24 nese yen has gained 15% with bringing down the coun- outflows this year as investors First Tr Finls AlphaDEX FXO 1.7 .096 Q Jun30 /Jun24 FT Mega Cap ETF FMK 1.4 .0919 Q Jun30 /Jun24 against the dollar for the year try’s inflation and keeping the have grown impatient about First Tr FTSE Dv Rl Est FFR 3.0 .3375 Q Jun30 /Jun24 FT Mid Cap Growth FNY 0.4 .0276 Q Jun30 /Jun24 First Tr Germ AlphaDEX FGM 5.1 .4642 Q Jun30 /Jun24 FT Mid Cap Value FNK 1.6 .1162 Q Jun30 /Jun24 through Tuesday, while the rupee relatively stable during the pace of economic reforms, First Tr Gl Natural Rscs FTRI 4.7 .123 Q Jun30 /Jun24 FT NA Energy Infra EMLP 3.9 .2336 Q Jun30 /Jun24 South Korean won has risen his tenure, but his departure so that has certainly weighed First Tr High Income ETF FTHI 4.7 .0775 M Jun30 /Jun24 FT NASDAQ Cybersecurity CIBR 0.3 .0147 Q Jun30 /Jun24 1.8%. has raised questions about on the rupee,” said Khoon First Tr Inds/Prdcer Dur FXR 0.8 .0591 Q Jun30 /Jun24 FT NASDAQ Smartphone FONE 1.7 .1586 Q Jun30 /Jun24 First Tr Intl IPO ETF FPXI 3.5 .2203 Q Jun30 /Jun24 FT Small Cap Growth FYC 0.2 .0151 Q Jun30 /Jun24 Some analysts expect the whether some of these policies Goh, Singapore-based senior First Tr ISE ChIndia FNI 1.1 .0739 Q Jun30 /Jun24 FT Small Cap Value FYT 0.9 .0641 Q Jun30 /Jun24 rupee to go beyond 70 a dollar will continue. strategist at Australia & New First Tr ISE Cloud Comp SKYY 0.5 .042 Q Jun30 /Jun24 FT VI NASDAQ Tech Divd TDIV 2.7 .1771 Q Jun30 /Jun24 within a year, a level that Meanwhile, the government Zealand Banking Group Ltd. First Tr ISE Glbl Wd Engy FAN 1.6 .0496 Q Jun30 /Jun24 Intl Multi-Asset Div Incm YDIV 11.8 .1647 M Jun30 /Jun24 First Tr ISE Global Engg FLM 6.6 .766 Q Jun30 /Jun24 IQ 50% Hdg FTSE Eur HFXE 4.9 .21366 Q Jun28 /Jun24 would be its weakest yet. is due to repay more than $20 A lackluster economy and First Tr ISE Water FIW 0.8 .0664 Q Jun30 /Jun24 IQ 50% Hdg FTSE Intl HFXI 3.7 .15931 Q Jun28 /Jun24 Reserve Bank of India Gov. billion in foreign-currency de- piles of bad debt on banks’ First Tr Japan FJP 1.9 .2139 Q Jun30 /Jun24 IQ Leaders GTAA Tracker QGTA 1.3 .06719 Q Jun28 /Jun24 Raghuram Rajan’s abrupt an- posits to nonresident Indians books also are weighing on in- First Tr Large Cap ValFd FTA 1.8 .1853 Q Jun30 /Jun24 IQ US Real Est Small Cap ROOF 5.6 .36452 Q Jun28 /Jun24 First Tr Lat America FLN 4.5 .1746 Q Jun30 /Jun24 iSh Core MSCI EAFE ETF IEFA 3.7 .99541 SA Jun28 /Jun24 nouncement on Saturday that in coming months. The large vestors’ minds and the rupee, First Tr LCap Cr AlphaDEX FEX 1.4 .1571 Q Jun30 /Jun24 iSh Core MSCI Emg Mkts IEMG 1.8 .38083 SA Jun28 /Jun24 he would step down when his outflow, to happen over a Mr. Goh said. First Tr Low Beta Incm FTLB 3.2 .0525 M Jun30 /Jun24 iSh Core MSCI Europe IEUR 4.6 .94762 SA Jun28 /Jun24 term ends in September could short time, is expected to Foreign investors have First Tr Managed Mun ETF FMB 2.5 .11 M Jun30 /Jun24 iSh Core MSCI Pacific IPAC 2.1 .49643 SA Jun28 /Jun24 First Tr Matls AlphaDEX FXZ 1.0 .0832 Q Jun30 /Jun24 iSh Core MSCI Total Intl IXUS 3.0 .75415 SA Jun28 /Jun24 make already-skittish global cause volatility in the rupee withdrawn about $1.4 billion First Tr MCapCrAlphaDEX FNX 1.2 .1474 Q Jun30 /Jun24 iSh Edge MSCI Intl Mom IMTM 2.6 .33499 SA Jun28 /Jun24 investors more cautious to- market. from Indian debt this year, First Tr MCapGrAlphaDEX FAD 0.5 .0645 Q Jun30 /Jun24 iSh Edge MSCI Intl Qual IQLT 3.8 .48142 SA Jun28 /Jun24 ward India. The rupee’s decline this compared with an investment First Tr MCapValAlphaDEX FAB 1.5 .1607 Q Jun30 /Jun24 iSh Edge MSCI Intl Size ISZE 3.4 .40882 SA Jun28 /Jun24 First Tr Mrngstr Div Ldrs FDL 2.7 .1798 Q Jun30 /Jun24 iSh Edge MSCI Intl Value IVLU 3.5 .36222 SA Jun28 /Jun24 “With Rajan’s exit, the pres- year is in contrast to its per- of $6.3 billion in the same pe- iSh Edge MSCI Min Japan JPMV 1.1 .33053 SA Jun28 /Jun24 sures will exaggerate,” said formance in 2015, when the riod last year, according to KEY: A: annual; c: corrected; M: monthly; Q: quarterly; r: revised; iSh Edge MSCI Min Vl Asia AXJV 1.0 .24596 SA Jun28 /Jun24 Saurabh Mukherjea, chief ex- currency held up better than regulatory data. SA: semiannual; S2:1: stock split and ratio; SO: spin-off. Continued on Page C6 For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com C4 | Thursday, June 23, 2016 **** THE WALL STREET JOURNAL. IN THE MARKETS

BEAR It’s Oil Relative Stocks Fall Along With Oil Crude oil prices have more than halved in recent years... ContinuedfrompageC1 BY RIVA GOLD projects coming online in the $120 a barrel AND ALEX BITTER near future such as the Johan Sverdrup oil field just off Nor- 90 U.S. stocks snapped a two- way. Unlike projects in deep day winning streak as oil water or hostile environments, 60 prices fell and investors braced this field sits less than 100 for the U.K.’s coming vote on miles from the headquarters of 30 membership in the European Statoil, which will be one of Union. the field’s operators. 0 Stocks, bonds and curren- Mr. Driscoll runs the $3.3 cies around the world have re- billion T. Rowe Price New Era 2013 ’14 ’15 ’16 cently moved on expectations Fund, the firm’s 47-year-old ...dragging Shawn Driscoll's around Thursday’s U.K. refer- natural-resources fund, which mutual fund below the broader endum, with risky assets such he took over nearly three years market until this year. as stocks ago. While he sits in the top WEDNESDAY’S and oil 25% of his competitors, the S&P 500 (total return) MARKETS gaining fund has lost an average of T. Rowe Price New Era when polls nearly 2% a year for the last 40% and betting three years. Assets are down by firms suggest a victory for the roughly a quarter since he took “Remain” camp, but falling over. 20 when the odds appear to favor “We’ve prepared ourselves the “Leave” campaign. for what the bear market

While betting markets SERGIO FLORES/BLOOMBERG NEWS would be like,” he said. “But 0 pointed to a victory for the Re- SolarCity’s stock rose 3.3% after Elon Musk proposed combining the company with Tesla Motors. living through it is a lot main campaign, the latest tougher.” opinion polls have sent con- Marathon Oil fell 34 cents, chelle McGrade, chief invest- 0.4% higher against the dollar The fund has stayed active, –20 flicting signals. A poll by Opin- or 2.3%, to $14.75, and Chesa- ment officer at brokerage TD late Wednesday at $1.4706. buying on dips such as last ’142013 ’15 ’16 ium released Wednesday peake Energy lost 11 cents, or Direct Investing in London. Earlier, Asian markets were week when Mr. Driscoll, from showed the two camps neck- 2.4%, to 4.51. Notably, the pound rose mixed in light trading, with vacation in Florida, picked up Despite relatively strong results and-neck, with Leave at 45% Health-care stocks gained. sharply against the dollar after Japan’s Nikkei Stock Average shares of European oil compa- compared to similar funds... and Remain at 44%. Biotech firm Celgene rose the stock market closed falling 0.6% and the Shanghai nies after energy prices fell. Category percentile ranking “Players on both sides of 2.37, or 2.4%, to 99.23, while Wednesday when a Wednesday Composite Index adding 0.9%. They sold out of heavily in- 24 25 24 29 Regeneron Pharmaceuticals showed a lead for the remain the Atlantic continue to hedge AUCTION RESULTS debted companies when high- going into the ‘Brexit’ vote,” added 6.78, or 2%, to 351.92. camp in the U.K. vote. yield markets started to tumble Here are the results of Wednesday's Treasury ...investors aren’t buying it. said Tom Carter, managing di- Shares of Tesla Motors fell Following a recent recovery auctions. All bids are awarded at a single price at the and bought specialty-chemicals market-clearing yield. Rates are determined by the rector at JonesTrading. 22.95, or 10%, to 196.66 after in stock markets, strategists at difference between that price and the face value. makers. Estimated net ﬂows The Dow Jones Industrial Elon Musk on Tuesday pro- UBS on Wednesday said U.K. ONE-YEAR, 10-MONTH FRNs He was on the wrong side of $50 million Average slipped 48.90 points, posed combining the company and European equities could Applications $41,008,826,000 a big rally in refiners. “It took Accepted bids $13,000,016,000 0 or 0.3%, to 17780.83. The S&P with solar-energy firm Solar- see a short-term percentage " noncompetitively $3,826,000 every strand of my being not to 500 fell 3.45 points, or 0.2%, to City, of which he is also chair- decline “in the midteens” on a Spread 0.190% chase that,” he said. But this Bids at clearing yield accepted 68.73% –50 2085.45, and the Nasdaq Com- man and the largest share- U.K. vote to leave the EU, but Cusip number 912828Q86 year the fund rode the oil rally posite Index lost 10.44 points, holder. SolarCity jumped 69 “materially smaller moves” for The floating-rate notes, dated June 24, 2016, mature and is up 17.5%, well ahead of –100 or 0.2%, to 4833.32. cents, or 3.3%, to 21.88. the S&P 500 and emerging- on April 30, 2018. the overall market and more Energy stocks led the de- market equities. SEVEN-YEAR NOTES than 2.5 percentage points –150 Applications $75,725,196,700 clines, falling 0.6% in the S&P “There is bigger downside $32,084,663,900 ahead of his peers. Accepted bids –200 500. U.S. crude oil for August 0.6% in case of a Leave than there is " noncompetitively $7,047,200 Mr. Driscoll’s bigger respon- delivery fell 1.4% to $49.13 a upside in case of a Remain,” " foreign noncompetitively $0 sibility is to T. Rowe Price’s Auction price (rate) 99.192087 –250 barrel after inventory data Drop by energy stocks, which said Manu Vandenbulck, senior (1.497%) other fund managers, and he is showed that U.S. crude sup- led the declines in the S&P 500 portfolio manager at NN In- Interest rate 1.375% paid in part on the impact his 2013 ’14 ’15 ’16 Bids at clearing yield accepted 87.12% plies dropped less than ex- on Wednesday vestment Partners in Belgium. Cusip number 912828S35 advice has on the firm. With Sources: WSJ Market Data Group (oil); pected last week. Still, he said, longer-term The notes, dated June 30, 2016, mature on June 30, money pouring out of actively Morningstar Oil prices have rallied in re- losses for Europe may be lim- 2023. managed funds, T. Rowe Price THE WALL STREET JOURNAL. cent months, revisiting $50 a The Stoxx Europe 600 rose ited, as the European Central 29-YEAR, EIGHT-MONTH TIPS has held up well compared Applications $14,186,639,200 barrel on production outages 0.4% for its largest four-session Bank remains supportive. Accepted bids $5,729,408,500 with the rest of the industry. surge above $50 a barrel. and expectations of declining gain since February. London’s Gold, which tends to gain in " noncompetitively $15,386,300 The next big test for the Going against the crowd has Auction price (rate) 103.449203 supplies. Regardless of the out- FTSE 100 gained 0.6%, but in- times of market stress, pulled (0.905%) bear case is coming up as the been fun so far. “Ask me again come of the U.K. vote, it will be vestors remained on edge back 0.2% to $1,268 an ounce. Interest rate 1.000% oil market gets closer to sup- in a few years,” Mr. Driscoll tough for oil to stay above $50, ahead of the referendum. “Cli- The euro edged up 0.5% Bids at clearing yield accepted 71.43% ply-and-demand balance. If de- said. “I do think bear markets Cusip number 912810RR1 said JJ Kinahan, chief market ents are more nervous than against the dollar to $1.1297, The Treasury inflation-protected securities, dated mand outstrips supply, as many have a way of grinding people strategist at TD Ameritrade. they were before,” said Mi- while the British pound traded June 30, 2016, mature on Feb. 15, 2046. investors believe, oil is likely to down.”

| WSJ.com/stocks Net Net Net Net Net Net Biggest 1,000 Stocks Stock Sym Close Chg Stock Sym Close Chg Stock Sym Close Chg Stock Sym Close Chg Stock Sym Close Chg Stock Sym Close Chg How to Read the Stock Tables BkMntrl BMO 64.51 -0.03 CardinalHealth CAH 77.04 0.15 s CrownCastl CCI 95.24 -0.13 EnersisAmericasADR ENIA 8.45 -0.04 GlaxoSmithKlineADR GSK 41.76 0.11 IBM IBM 152.92 -1.13 The following explanations apply to NYSE, NYSE Arca, NYSE MKT and Nasdaq Stock Market listed BankNY Mellon BK 40.60 0.16 Carlisle CSL 103.53 -0.25 CrownHoldings CCK 53.07 0.12 EnersisChileADR ENIC 5.64 0.04 GlblPymts GPN 74.26 -0.62 IntFlavor IFF 126.86 -0.42 securities. Prices are composite quotations that include primary market trades as well as trades BkNovaScotia BNS 50.54 -0.35 CarMax KMX 46.50 -1.64 CubeSmart CUBE 29.74 0.17 EnLinkMidstream ENLK 16.27 -0.04 Goldcp GG 18.05 0.53 InternationalPaper IP 42.37 -0.08 reported by Nasdaq OMX BXSM (formerly Boston), Chicago Stock Exchange, CBOE, National Stock BarclaysADR BCS 10.71 0.09 Carnival CCL 48.86 0.21 Cummins CMI 115.78 0.42 Entergy ETR 77.88 -0.07 GoldmanSachs GS 148.14 -0.21 s Interpublic IPG 24.53 0.35 Exchange, ISE and BATS. Bard CR BCR 228.48 0.26 Carnival ADR CUK 50.63 0.12 DDR Corp DDR 17.55 -0.04 EntPdtsPtnr EPD 28.74 0.07 GraceWR GRA 76.39 -0.10 IronMountain IRM 38.27 0.04 The list comprises the 1,000 largest companies based on market capitalization. 19.65 0.49 104.42 -1.50 93.75 -0.28 26.58 0.02 224.01 1.12 4.00 -0.01 Underlined quotations are those stocks with large changes in volume compared with the issue’s BarrickGold ABX Carters CRI DTEEnergy DTE EnvisionHealthcare EVHC Grainger GWW IsraelChemicals ICL average trading volume. BaxterIntl BAX 44.94 -0.07 Caterpillar CAT 76.43 -0.06 Danaher DHR 99.04 0.01 Equifax EFX 125.15 0.19 GpoAeroportuarADR PAC 101.90 -1.31 ItauUnibancoADR ITUB 8.52 -0.07 Boldfaced quotations highlight those issues whose price changed by 5% or more if their previous BectonDickinson BDX 169.97 -0.05 Celanese A CE 68.95 -0.33 Darden DRI 67.18 -0.02 EquityLife ELS 73.70 0.25 GpoAeroportSurADR ASR 157.22 -0.23 JPMorganChase JPM 62.71 -0.24 closing price was $2 or higher. Bemis BMS 50.81 0.01 CemexADR CX 6.52 0.08 DaVitaHlthcrPtrs DVA 76.18 0.53 EqResdntl EQR 66.37 0.37 GpoAvalAccionesADR AVAL 8.02 0.10 JacobsEngineering JEC 52.32 0.12 Footnotes: listing standards vj-In bankruptcy or Berkley WRB 56.31 0.20 CencosudADR CNCO 8.46 0.05 Deere DE 83.92 -0.17 EssexProp ESS 220.22 0.34 GpFinSantandMexADR BSMX 8.85 -0.05 JamesHardieADR JHX 14.99 -0.14 s-New 52-week high. lf-Late filing receivership or being BerkHathwy A BRK/A 216266846.00 CenovusEnergy CVE 14.18 -0.47 DelhaizeGroupADR DEG 25.68 -0.19 EsteeLaudr A EL 93.59 0.49 GrupoTelevisaADR TV 26.13 0.33 JohnsJohns JNJ 116.46 0.28 t-New 52-week low. q-Temporary exemption from reorganized under the BerkHathwy B BRK/B 143.94 0.41 Centene CNC 69.18 0.07 DelphiAutomotive DLPH 69.03 -0.14 EvrstReGrp RE 175.54 0.20 HCAHoldings HCA 79.30 0.55 JohnsonControls JCI 44.39 0.19 dd-Indicates loss in the most Nasdaq requirements. Bankruptcy Code, or securities BestBuy BBY 30.05 -0.01 CenterPointEnergy CNP 23.24 -0.26 DeltaAir DAL 38.55 -0.12 EversourceEnergy ES 56.69 -0.34 HCP HCP 34.05 -0.96 JonesLangLaSalle JLL 112.74 0.35 recent four quarters. t-NYSE bankruptcy assumed by such companies. BlackRock BLK 347.67 -0.33 CenturyLink CTL 27.92 -0.16 DeutscheBank DB 16.87 0.06 Exelon EXC 34.43 -0.33 HDFCBankADR HDB 66.14 0.01 JoyGlobal JOY 21.42 -0.37 FD-First day of trading. v-Trading halted on primary 23.01 -0.21 h-Does not meet continued market. BlackstoneGroup BX 25.17 -0.15 Chevron CVX 102.29 -0.95 DevonEnergy DVN 37.94 -0.25 ExtraSpaceStorage EXR 87.47 0.15 HP HPQ 12.61 -0.72 JuniperNetworks JNPR BlockHR HRB 22.60 0.01 ChinaEasternAirADR CEA 26.09 0.09 DiageoADR DEO 108.75 0.53 s ExxonMobil XOM 91.17 -0.36 HSBCHoldingsADR HSBC 32.65 0.22 KARAuctionServices KAR 39.77 0.11 Wall Street Journal stock tables reflect composite regular trading as of 4 p.m. and BdwlkPipePtnr BWP 17.73 -0.34 ChinaLifeInsADR LFC 10.77 -0.01 s DigitalRealtyTrust DLR 104.47 0.46 FMC FMC 48.73 0.50 Halliburton HAL 44.66 0.04 KBFinancialGrpADR KB 29.46 0.18 changes in the closing prices from 4 p.m. the previous day. Boeing BA 131.77 0.25 ChinaMobileADR CHL 55.92 -0.04 DiscoverFinSvcs DFS 53.27 -0.01 FMCTechnologies FTI 27.60 0.01 Hanesbrands HBI 26.34 -0.29 KKR KKR 13.01 -0.07 Wednesday, June 22, 2016 BorgWarner BWA 33.15 -0.20 ChinaPetroleumADR SNP 70.31 0.19 Disney DIS 98.79 -0.03 FactSetResearchSys FDS 158.22 -0.03 HarleyDavidson HOG 46.14 -0.02 KTADR KT 14.01 -0.02 Net Net 128.17 0.58 s 157.14 0.05 89.83 0.15 Stock Sym Close Chg Stock Sym Close Chg BostonProperties BXP ChinaSoAirlinesADR ZNH 28.50 0.33 DolbyLab A DLB 48.37 -0.15 FedRlty FRT HarmanIntlInds HAR 75.11 -0.33 KSCitySo KSU Net 22.66 -0.10 45.35 0.86 s 91.94 0.48 156.51 -7.44 83.39 -0.11 Kellogg K 77.35 0.02 Stock Sym Close Chg BostonScientific BSX ChinaTelecomADR CHA DollarGeneral DG FedEx FDX Harris HRS AlliantEnergy LNT 38.64 -0.41 ArcelorMittalADR MT 5.06 -0.03 BristolMyers BMY 72.31 1.06 ChinaUnicomADR CHU 10.46 -0.02 DominionResources D 73.79 -0.56 Ferrari RACE 42.17 -0.43 HrtfrdFnl HIG 44.06 -0.16 KeyCp KEY 11.57 -0.06 NYSE AllisonTransmissn ALSN 27.97 0.02 ArcherDan ADM 42.00 0.06 BrixmorPropertyGrp BRX 25.72 -0.18 ChipotleMex CMG 392.99 1.03 Dominos DPZ 125.32 -2.01 FiatChryslerAutos FCAU 6.92 -0.14 Helmerich&Payne HP 66.93 -0.05 KeysightTechs KEYS 30.40 0.34 Allstate ALL 67.02 0.22 AristaNetworks ANET 71.36 -1.26 BdridgeFnlSol BR 64.23 -0.04 Chubb CB 125.54 0.06 Donaldson DCI 35.59 -0.07 FidNtlFnl FNF 34.98 0.05 Herbalife HLF 59.17 -0.15 KilroyRealty KRC 64.01 0.40 ABBADR ABB 21.26 -0.03 AllyFinancial ALLY 16.26 -0.10 ArrowElectronics ARW 66.46 -0.36 BrookfieldMgt BAM 34.30 -0.14 s ChunghwaTelecomADR CHT 35.17 -0.02 DouglasEmmett DEI 33.84 -0.13 FNFVGroup FNFV 11.64 -0.15 Hershey HSY 97.35 -0.11 KimberlyClark KMB 133.16 0.12 AECOM ACM 32.51 -0.32 AltriaGroup MO 66.15 -0.03 Ashland ASH 115.76 0.60 BrookfieldInfr BIP 44.11 -0.24 Church&Dwight CHD 100.24 0.57 Dover DOV 70.63 -0.19 FidelityNtlInfo FIS 73.13 -0.16 Hess HES 58.02 -0.68 KimcoRealty KIM 29.68 0.02 AES AES 11.99 -0.02 AlumofChinaADR ACH 7.75 0.03 Assurant AIZ 86.15 0.29 Brown&Brown BRO 36.35 0.03 Cigna CI 127.90 0.11 DowChemical DOW 53.22 -0.05 58.comADR WUBA 45.25 -0.15 HewlettPackardEnt HPE 19.21 -0.55 KinderMorgan KMI 18.51 -0.28 s Aflac AFL 70.84 0.29 AmbevADR ABEV 5.37 -0.06 AstraZenecaADR AZN 28.70 0.06 BrownFormanClA BF/A 104.40 -1.02 CimarexEngy XEC 118.46 -0.40 DrPepperSnap DPS 92.11 -0.26 FirstDataClA FDC 12.21 -0.10 HighwdProp HIW 49.38 ... KinrossGold KGC 4.93 0.16 AGLResources GAS 65.91 0.04 Ameren AEE 51.26 -0.11 AtmosEnergy ATO 76.54 -0.09 BrownFormanClB BF/B 96.69 -1.11 Citigroup C 42.68 -0.24 DrReddysLabADR RDY 46.50 0.90 FirstRepublicBank FRC 70.22 0.42 HiltonWorldwide HLT 22.87 ... Kohl's KSS 36.79 -0.05 s AT&T T 41.30 0.23 AmericaMovilADR AMX 12.19 0.10 Autoliv ALV 122.50 -0.25 BuckeyePartners BPL 71.59 0.35 CitizensFinancial CFG 21.37 -0.18 DuPont DD 68.07 0.52 FirstEnergy FE 33.04 -0.50 HomeDepot HD 127.60 -0.14 KoninklijkePhilADR PHG 26.17 0.02 AbbottLabs ABT 38.74 1.01 s AmCampus ACC 49.13 0.04 AutoNation AN 47.62 -0.27 Bunge BG 61.54 -0.02 s Clorox CLX 133.85 0.75 DukeEnergy DUK 81.83 -0.17 FleetCorTechs FLT 144.17 -1.90 HondaMotorADR HMC 25.93 -0.48 KoreaElcPwrADR KEP 25.55 0.41 AbbVie ABBV 60.39 0.41 AEP AEP 66.50 -0.27 AutoZone AZO 756.30 7.56 CBRE Group CBG 29.23 0.13 Coach COH 40.29 -0.12 DukeRealty DRE 25.33 -0.34 Flowserve FLS 49.51 -0.07 Honeywell HON 116.57 -0.73 Kroger KR 34.22 -0.25 s AccentureClA ACN 119.03 -0.40 AmericanExpress AXP 61.95 -0.34 Avalonbay AVB 174.95 -0.12 CBSClA CBS/A 57.14 0.14 CocaCola KO 44.86 -0.27 EMC EMC 27.65 -0.09 Fluor FLR 51.50 0.17 HormelFoods HRL 34.57 -0.35 KyoceraADR KYO 48.70 -0.67 AcuityBrands AYI 249.91 -0.30 AmericanFinancial AFG 72.30 0.29 Avangrid AGR 43.31 -0.97 CBSClB CBS 53.65 0.21 Coca-ColaFemsaADR KOF 82.15 0.84 ENIADR E 31.87 -0.59 FomentoEconMexADR FMX 91.01 0.76 DR Horton DHI 30.79 -0.22 LBrands LB 68.64 0.45 AdvanceAuto AAP 153.16 -1.28 AmericanIntl AIG 53.68 -0.11 AveryDennison AVY 76.36 0.03 CFIndustries CF 27.02 -0.29 ColgatePalmolive CL 72.25 0.45 EOG Res EOG 83.60 -1.31 FootLocker FL 53.55 -0.41 HostHotels&Resorts HST 16.80 0.15 LGDisplayADR LPL 10.97 0.11 143.86 0.13 AdvSemiEnggADR ASX 5.47 -0.03 s AmericanTowerREIT AMT 109.40 -0.04 Aviva ADR AV 12.96 0.16 CGI Gp A GIB 45.78 -0.02 ColumbiaPipeline CPGX 25.48 ... EPRProperties EPR 74.85 -0.13 FordMotor F 13.18 -0.04 HuanengPowerADR HNP 27.98 0.57 L-3Communications LLL 129.76 1.53 AegonADR AEG 4.76 0.03 AmericanWaterWorks AWK 78.26 0.11 Avnet AVT 42.86 -0.19 CIT Grp CIT 31.21 -0.10 Comerica CMA 42.58 0.11 EQT EQT 78.45 -0.23 ForestCityRealtyA FCE/A 22.53 0.20 Hubbell HUBB 101.84 0.43 LabCpAm LH 44.93 -0.26 AerCapHoldings AER 38.10 -0.24 Amerigas APU 44.96 0.52 AxaltaCoatingSys AXTA 27.96 -0.11 CMSEnergy CMS 43.65 -0.06 s SABESP ADR SBS 8.38 0.16 EQTMidstreamPtrs EQM 77.04 2.16 FortBrandsHomeSec FBHS 57.16 -0.41 Humana HUM 187.67 -2.40 LasVegasSands LVS 113.57 -0.52 Aetna AET 120.16 -0.93 AmerprsFncl AMP 99.17 0.48 AxisCapital AXS 53.52 0.09 CNAFinancial CNA 31.25 0.11 CSC CSC 51.00 -0.13 EastmanChemical EMN 71.58 -0.49 Franco-Nevada FNV 68.86 0.05 HuntingtonIngalls HII 162.00 0.70 LearCorp LEA 50.60 0.19 AffiliatedManagers AMG 154.37 1.16 AmeriSrcBrg ABC 77.13 0.56 BB&T BBT 35.98 -0.01 CNOOCADR CEO 123.79 0.08 s ConAgraFoods CAG 47.40 -0.06 EatonCorp.PLC ETN 61.76 -0.09 FranklinResources BEN 33.74 -0.07 HyattHotels H 49.72 -0.56 Leggett&Platt LEG 45.97 -0.17 s AgilentTechs A 46.03 -0.13 Ametek AME 46.42 0.02 BCE BCE 46.51 -0.14 s CPFLEnergiaADR CPL 12.15 0.04 ConchoResources CXO 125.74 0.19 Ecolab ECL 119.44 0.01 Freeport-McMoRan FCX 11.50 -0.11 ICICIBankADR IBN 7.10 -0.02 LennarClA LEN 36.61 -0.09 AgnicoEagleMines AEM 50.40 0.76 AmphenolClA APH 58.21 -0.07 BHPBillitonADR BHP 28.05 -0.25 CRHADR CRH 30.26 0.03 ConocoPhillips COP 43.99 -0.81 EcopetrolADR EC 9.62 0.04 FreseniusMedADR FMS 42.54 0.47 IHSClA IHS 114.60 -1.73 LennarClB LEN/B 138.55 -0.20 Agrium AGU 93.71 -0.55 AnadarkoPetroleum APC 54.39 -1.12 BHPBillitonADR BBL 24.97 -0.09 CVSHealth CVS 93.73 0.52 ConEd ED 77.16 -0.01 EdgewellPersonal EPC 83.64 0.17 Gallagr AJG 46.80 0.01 IMSHealthHoldings IMS 24.70 -0.11 LennoxIntl LII 17.15 0.12 AirProducts&Chems APD 143.50 0.35 AngloGoldAshADR AU 15.86 0.08 BPADR BP 33.89 -0.26 CabotO&G COG 25.23 -0.24 ConstBrands A STZ 153.65 -1.19 EdisonInt EIX 73.84 -0.28 Gap GPS 20.61 0.06 INGGroepADR ING 11.90 0.04 LeucadiaNational LUK 51.67 -0.09 AlaskaAirGroup ALK 59.68 -0.78 AnheuserBuschADR BUD 128.45 -0.11 BRFADR BRFS 13.05 -0.45 Calpine CPN 13.79 -0.32 ConstBrands B STZ/B 154.62 ... EdwardsLife EW 98.04 -0.53 Gartner IT 98.41 -0.19 Invesco IVZ 28.77 0.12 Level3Comm LVLT 39.00 -0.17 Albemarle ALB 83.32 -0.30 AnnalyCap NLY 10.68 0.03 BTGroupADR BT 31.72 0.26 CamdenPropertyTr CPT 84.23 0.80 s ContinentalRscs CLR 44.82 -0.27 EmersonElectric EMR 52.59 -0.56 Gazit-Globe GZT 9.23 0.11 ITCHoldings ITC 45.57 -0.15 LibertyPropertyTr LPT 73.07 0.50 Alcoa AA 9.89 0.03 AnteroResources AR 28.50 -0.18 BakerHughes BHI 46.06 -0.54 Cameco CCJ 11.15 -0.02 Cooper COO 164.55 -1.01 EmpresaNacADR EOCC 27.02 0.24 GenDynam GD 138.79 -0.62 IDEX IEX 85.60 0.17 EliLilly LLY 42.66 0.08 AlexREEq ARE 98.46 0.54 Anthem ANTM128.72 -2.73 Ball BLL 72.49 0.50 CampbellSoup CPB 62.59 -0.26 CoreLabs CLB 123.95 0.50 EnbridgePtnr EEP 22.61 -0.19 GenElec GE 30.78 -0.16 IllinoisToolWorks ITW 105.80 -0.27 LincolnNational LNC 190.32 -0.47 AlibabaGroupADR BABA 78.73 0.11 Aon AON 107.73 -0.07 BancoBilbaoVizADR BBVA 6.33 ... CIBC CM 80.18 -0.33 Corning GLW 20.55 0.18 Enbridge ENB 42.37 0.04 GeneralGrowthProp GGP 28.75 0.01 InfosysADR INFY 18.58 0.04 LinkedInA LNKD 23.73 0.23 Y 533.14 1.07 Apache APA 56.43 -0.20 BancodeChileADR BCH 62.53 0.08 CanNtlRlwy CNI 59.02 0.62 CotyClA COTY 26.51 0.14 Encana ECA 8.14 -0.28 s GIS 66.40 -0.12 Ingersoll-Rand IR 65.36 -0.04 LiveNationEnt LYV Alleghany GeneralMills 4.18 ... s ALLE 68.84 -0.18 AIV 41.85 0.11 BSAC 18.98 0.08 CNQ 29.68 -0.66 BAP 151.26 -0.41 EGN 49.13 -0.11 GM 29.32 -0.19 IM 35.00 -0.18 LloydsBankingADR LYG Allegion ApartmtInv BcoSantChileADR CndNatRes Credicorp Energen GeneralMotors IngramMicroClA 238.17 -0.38 228.55 -3.00 ATR 78.31 0.63 SAN 4.53 -0.01 127.36 3.41 13.12 0.05 14.35 0.03 27.16 0.09 s 124.55 -0.42 LockheedMartin LMT Allergan AGN Aptargroup BancoSantanderADR CanPacRlwy CP CreditSuisseADR CS EngyTrnsfrEqty ETE Genpact G Ingredion INGR 40.25 -0.09 AllianceData ADS 200.00 -0.01 AquaAmerica WTR 33.49 -0.18 BanColombiaADR CIB 35.12 0.75 CanonADR CAJ 29.50 -0.14 CrescentPntEnrg CPG 15.82 -0.21 EnergyTransfer ETP 40.26 -0.27 GenuineParts GPC 97.95 0.40 ICE ICE 252.00 1.04 Loews L AllncBrnstnHldg AB 23.23 0.27 Aramark ARMK 33.64 0.19 BankAm BAC 13.61 -0.01 CapOneFnl COF 63.93 -0.32 CrestwoodEquity CEQP 20.96 -0.36 Enerplus ERF 6.43 -0.08 Gildan GIL 28.67 -0.15 InterContinentlADR IHG 39.64 0.10 Continued on Page C6

New Highs and Lows | WSJ.com/stocks 52-Wk % 52-Wk % 52-Wk % 52-Wk % 52-Wk % 52-Wk % Stock Sym Hi/Lo Chg Stock Sym Hi/Lo Chg Stock Sym Hi/Lo Chg Stock Sym Hi/Lo Chg Stock Sym Hi/Lo Chg Stock Sym Hi/Lo Chg The following explanations apply to the New York Stock Exchange, NYSE Arca, NYSE MKT and Nasdaq Stock NextEraEnDebK NEEpK 25.18 0.2 U.S.SilicaHoldings SLCA 35.19 ... VanEckVctrHYMuni HYD 32.08 0.2 AnikaTherapeutics ANIK 50.48 0.2 Nanometrics NANO 20.71 -0.6 ComtechTel CMTL 13.58 -1.8 Market stocks that hit a new 52-week intraday high or low in the latest session. NEEpJ 26.01 0.3 DCA 4.60 0.7 RSXJ 27.25 -2.1 AXGN 6.40 ... SAUC 1.18 -10.3 % CHG-Daily percentage change from the previous trading session. NextEra5%PfdJrDebJ VirtusTotalRetFd VanEckRussiaSC AxoGen NationalBeverage FIZZ 58.00 -0.7 DvsfdRestaurant NuvCA Val NCA 11.18 0.2 W.P.Carey WPC 68.50 0.3 VangdTelecm VOX 95.64 -0.3 Brightcove BCOV 8.78 7.0 NatlGenDepPfdB NGHCO 26.28 -0.9 Dryships DRYS 0.75 -6.1 Wednesday, June 22, 2016 NuvMD Prm NMY 13.95 -0.1 WellCareHealth WCG 110.81 1.4 WisdomTreeHiDivFd DHS 65.73 -0.2 CA CA 33.45 0.4 1347CapitalWt TFSCW 0.45 20.4 Enteromedics ETRM 0.35 9.3 52-Wk % 52-Wk % 52-Wk % NuvMI Qual NUM 15.19 0.5 WF5.7%NonCumPfdW WFCpW 26.34 0.3 CalavoGrowers CVGW 68.82 -1.6 OpenText OTEX 61.77 -0.2 FenixParts FENX 3.46 -2.2 Stock Sym Hi/Lo Chg Stock Sym Hi/Lo Chg Stock Sym Hi/Lo Chg NuvMuniInco NMI 13.27 1.1 WellsFargoDepPfdQ WFCpQ 27.35 ... NYSE Arca lows - 3 CarmikeCnmas CKEC 30.97 1.2 PatrickIndustries PATK 56.84 0.8 IgniteRestaurant IRG 1.48 -3.6 3.16 0.3 CatchMarkTimberTr CTT 12.23 -0.1 EntergyArkansasBd EAE 26.07 0.5 NuvNY NAN 15.66 0.1 WellsFargoPfdA WFCpR 29.76 0.4 ProShHdgFTSEJapan HGJP 28.44 2.6 CarolinaBankNC CLBH 18.91 13.5 ProvidentBancorp PVBC 15.64 4.4 Immunogen IMGN KLREW 0.15 ... NYSE highs - 120 ChannelAdvisor ECOM 15.00 0.4 EntergyFst4.90 EAB 26.20 0.8 NuvNC Prm NNC 14.78 1.0 WesternAllianDeb56 WALA 25.11 0.2 ProShrUSCnsmrGd SZK 18.68 -3.0 CascadeMicrotech CSCD 21.75 0.4 RedRockResortsClA RRR 23.13 -0.6 KLREnergyAcqnWt LSXMB 30.43 -1.8 Aflac AFL 71.06 0.4 CharlesSchwabPfdD SCHWpD 26.59 0.2 Entergy5.50Bd66 ENO 26.94 0.2 NuveenPreferredFd JPS 9.35 0.8 ProShrUltSh3-7YrTr TBZ 25.36 ... CntlGarden CENT 22.95 -0.9 SafetyInsurance SAFT 61.87 0.2 LibertyMedSiriusB MRNS 1.29 0.8 AT&T T 41.56 0.6 ChunghwaTelecomADR CHT 35.46 -0.1 ExxonMobil XOM 91.93 -0.4 ONEOK OKE 47.34 -0.9 NYSE lows - 16 CntlGarden A CENTA 21.77 -0.8 ShenandoahTelecom SHEN 36.33 -0.5 MarinusPharma MDGS 1.17 -11.0 AccentureClA ACN 120.78 -0.3 CincinnatiBell CBB 4.57 -1.1 FirstMeritPfd.A FMERpA 26.00 0.1 PampaEnergiaADR PAM 27.30 -1.0 BrookfieldBusPtrs BBU 20.39 -2.7 NYSE MKT highs - 14 CincinnatiFin CINF 70.96 0.3 SkyWest SKYW 25.87 ... MedigusADR MesoblastADR MESO 3.82 -3.0 AgilentTechs A 46.47 -0.3 ClearwaterPaper CLW 65.42 3.9 Flaherty&CrumPfd FFC 21.54 0.2 PartnerRePfdH PREpH 30.95 -0.2 CobaltIntlEnergy CIE 1.75 -2.6 Amcon DIT 88.11 0.1 CirrusLogic CRUS 40.35 -0.6 Synopsys SNPS 53.56 0.1 MiratiTherapeutics MRTX 6.26 -1.2 Allegion ALLE 69.69 -0.3 Clorox CLX 133.89 0.6 Flaherty&CrumrnTR FLC 21.95 1.1 PIMCO MuniII PML 13.83 0.6 EmergentCapital EMG 3.35 -3.7 Abrdn AP IncFd FAX 5.09 -0.2 CommsSales&Leasing CSAL 28.86 1.0 TileShopHoldings TTS 20.00 1.7 ModusLink MLNK 1.19 -13.7 AllncBrnstnNa AFB 15.03 0.5 CommunityHlthcrTr CHCT 20.50 0.5 FreshDelMonte FDP 55.33 ... QuestDiag DGX 80.11 2.2 Exterran EXTN 11.01 -3.3 BritishAmTobADR BTI 126.15 0.5 ConnecticutWater CTWS 53.61 -1.3 UnionBankshares UNB 34.50 1.9 Neuralstem CUR 0.26 -7.8 AMBR 7.54 0.5 SBS 8.42 1.9 GCPAppliedTechs GCP 26.79 -0.3 QuotientTechnology QUOT 13.80 -1.0 FibriaCelulose ADR FBR 7.73 -3.0 EtnVncMI MIT EMI 14.42 1.3 CoreMarkHolding CORE 94.28 -1.0 UnivElectro UEIC 71.12 3.2 AmberRoad SABESP ADR NowestBioTher NWBO 0.57 -2.5 ACC 49.36 0.1 CAG 47.85 -0.1 GabelliGlSMidPfdA GGZpA 25.67 0.2 Qwest7%Nts2056 CTAA 26.48 0.3 FiveStarQuality FVE 1.82 -5.2 Goldfield GV 3.37 7.1 DTAsiaInvtsRt CADTR 0.33 4.5 VCA WOOF 67.85 -0.1 AmCampus ConAgraFoods NovaLifestyle NVFY 0.38 -2.5 AMH 18.86 0.1 CLR 45.64 -0.6 GeneralMills GIS 66.79 -0.2 Qwest7%Notes2052 CTX 26.62 0.1 HCIGroup HCI 27.59 -2.2 InvescoAdvMuniII VKI 13.05 0.5 DonegalGroupClA DGICA 16.34 0.2 VWR VWR 30.66 -0.5 AmerHomes4RentClA ContinentalRscs OceraTherapeutics OCRX 1.86 -3.8 AMT 109.82 ... CFCpB 26.07 0.2 Gigamon GIMO 38.59 3.3 QwestNtsdue2052 CTU 26.66 -0.3 LithiaMotorsClA LAD 71.70 -2.0 IndxPlus 03-1 IPB 29.80 1.8 eBay6%Nts2056 EBAYL 26.50 ... WaterstoneFinl WSBF 15.14 1.0 AmericanTowerREIT CntrwdCapV OculusInnovativeWt OCLSW 0.18 -9.7 AIB 26.20 -0.1 CCI 95.64 -0.1 GovtPropNts2046 GOVN 25.06 ... RepublicServices RSG 50.01 ... PublicStoragePfdR PSApR 25.11 -0.7 NubrgrRlEstSec NRO 5.58 ... Equinix EQIX 383.83 ... WillametteValley WVVI 9.00 2.5 ApolloInv6.625%Nts CrownCastl OncobiologicsWtA ONSIW 0.35 -10.3 HTSpA 25.03 0.2 ResMed RMD 62.74 0.9 RubyTuesday RT 3.73 -1.0 NuvCA Fd3 NZH 15.84 0.2 Exelixis EXEL 7.86 0.9 WindstreamHoldings WIN 9.50 -3.0 BB&TDepPfdSeriesH BBTpH 26.34 0.2 DDRPfdK DDRpK 27.02 0.1 HatterasFinPfd.A Oncobiologics ONS 3.36 -1.4 ISG 26.04 0.1 RiceEnergy RICE 23.13 -0.8 ScorpioTankers STNG 4.55 -2.6 NuvMuniIncoOpp NMZ 14.77 0.3 FlexSharesRealAsst ASET 26.63 0.3 WinsFinance WINS 13.99 5.5 BB&TPfdD BBTpD 26.80 -0.1 DigitalRealtyTrust DLR 104.62 0.4 ING Grp 6.125Secs PAM Transportation PTSI 16.83 -3.5 INGR 125.45 -0.3 RyersonHolding RYI 16.59 -1.5 SeaWorldEnt SEAS 14.98 -0.3 NuveenRlEst JRS 11.57 0.4 FlextronInt FLEX 13.17 0.7 Z 35.24 -0.2 BlkRkLngTrm Muni BTA 12.87 -0.5 DolbyLab A DLB 48.98 -0.3 Ingredion ZillowGroupClC PhaseRx PZRX 4.18 -4.2 NSP 76.20 -0.2 STOR 27.27 0.1 SCNB 22.88 -2.7 TIS 35.82 ... FONR 21.38 2.4 BlkRkMuniAssets MUA 15.44 0.3 DollarGeneral DG 92.33 0.5 Insperity STORECapital SuffolkBancorp OrchidsPaper Fonar QualitySystems QSII 11.65 -1.6 IPG 24.58 1.4 SSWpD 25.50 ... UTI 2.79 -5.4 UTG 31.42 0.3 ROCK 32.46 -0.2 Nasdaq lows - 51 BlkRkMuniBd Tr BBK 17.93 0.5 DouglasDynamics PLOW 24.91 1.6 Interpublic Seaspan7.95%Pfd.D UnvlTechInst ReavesUtilFd GibraltarInds QunarCaymanIslADR QUNR 25.75 -1.5 VMO 14.65 0.6 SBY 16.95 0.8 PAY 18.45 4.3 SVT 9.37 3.7 MILN 15.19 ... AMCX 57.02 -1.9 BlRkMuniHldgQlty MUS 15.38 0.9 DrewIndustries DW 82.87 1.0 InvescoMuniOpp SilverBayRealtyTr VeriFoneSystems Servotrnics GlbXMillThematic AMCNetworks A RITTechnologies RITT 0.25 -0.8 VTN 16.15 0.1 SITE 31.68 2.4 FUR 8.42 2.9 HBHCL 26.87 1.6 ADMP 2.81 -4.1 BlkRkMuniyldFd MYD 16.20 -0.5 DreyfusMuniBdInfr DMB 14.14 0.5 InvescoInvNYMuni SiteOneLandscape WinthropRealtyTr Hancock5.95%Nt2045 Adamis RegenPharm REGN 341.00 2.0 JPMpE 27.15 0.3 SJM 147.19 0.7 NYSE MKT lows - 4 FALN 25.46 0.4 AGLE 4.10 2.2 BlkRkMuniyldInvst MYF 16.51 0.7 DynexCap7.625%PfdB DXpB 24.20 ... JPMorganChasePfdW Smucker iShFallAngelsUSDBd AegleaBioThera ResearchFrontiers REFR 3.69 -0.8 LHOpJ 25.54 0.2 SJI 30.49 -0.3 NYSE Arca highs - 13 ESTE 10.12 0.7 HYXE 50.19 ... AIMT 12.02 -3.2 CPFLEnergiaADR CPL 12.66 0.3 EmbotellAndinaAADR AKO/A 19.39 1.8 LaSalleHotelPfdJ SoJerseyInd EarthstoneEnergy iSh$HYxOil&Gas AimmuneTherapeutic Sizmek SZMK 2.15 3.1 XKE 8.24 1.3 SE 34.86 -0.2 SOVB 27.82 1.4 MSN 0.59 -4.8 KLAC 74.47 0.6 ALXN 121.07 -2.2 CapOneDep.Pfd.D COFpD 28.29 -0.1 Entercom ETM 13.85 -0.3 CBTCS 01-31 SpectraEnergy CambriaSovHiYdBd EmrsnRadio KLA Tencor AlexionPharm Sphere3D ANY 0.66 -8.8 MVCCapNts2023 MVCB 26.00 1.0 SpectrumBrndsHldgs SPB 120.70 0.9 DJ 2xSelect Div DVYL 57.21 0.1 Inuvo INUV 1.56 -3.7 KewneeSci KEQU 19.35 9.0 AlliedHealthcare AHPI 0.52 -1.9 Strattec STRT 40.08 -5.2 MackCaliRealty CLI 27.52 -0.1 Stryker SYK 117.27 0.1 FranklinLibertyQEM FLQE 26.50 0.2 ZedgeClB ZDGE 3.59 -5.2 LakeSunapeeBank LSBG 17.94 1.9 Amyris AMRS 0.41 -8.0 TGTherapeutics TGTX 6.37 -2.8 Online>> MaidenHldgsNts2046 MHLA 25.41 0.6 TaiwanSemiconADR TSM 26.92 -0.2 FranklinGlbEquity FLQG 25.74 ... LamResearch LRCX 85.89 1.2 AralezPharma ARLZ 3.18 1.5 QURE 7.58 -2.3 Nasdaq highs - 63 uniQure During the trading day, 52-week highs and Marsh&McLennan MMC 67.26 0.1 TeckResourcesB TCK 12.60 ... GuggenUSLCOptVol OVLC 25.47 0.5 LunaInnov LUNA 1.32 8.7 Biogen BIIB 232.16 0.7 VisionChinaADR VISN 7.00 -0.4 MSpI 27.61 0.1 TRP 44.90 -0.4 IYZ 32.55 -0.4 AMD 5.52 -7.9 MMAC 18.00 0.1 CATB 3.80 -4.4 VIVE 4.47 -4.1 lows are updated hourly at WSJMarkets.com. MorganStanleyPfd1 TransCanada iSharesUSTelecomm AdvMicroDevices MMACapitalMgmt CatabasisPharma ViveveMedical MSNonCum pfd A MSpA 21.36 1.1 TravelCentersNts30 TANP 25.84 -0.5 JohnHancockConStp JHMS 28.33 8.9 AlphOmgSemi AOSL 15.00 1.8 ManhattanBr LOAN 5.12 3.3 Chimerix CMRX 3.60 1.1 XteraComms XCOM 0.85 -10.5 Lists for each market are available free, along MurphyUSA MUSA 72.98 0.3 TutorPerini TPC 23.84 -0.1 PIMCOIntermMuniBd MUNI 55.08 -0.1 AmCapAgencyPfdA AGNCP 26.69 0.1 MercurySystems MRCY 24.78 0.7 ChinaAutoSystems CAAS 3.42 -1.1 YYADR YY 35.10 -5.0 with easy access to charts and headlines. NewfldExpl NFX 43.11 4.9 USBncpPfdA USBpA 851.99 ... PS SP500LoVoltlPrt SPLV 41.54 -0.1 AmerIndep AMIC 22.98 1.4 MitchamIndsPfdA MINDP 24.99 0.9 CleantechSolnsIntl CLNT 0.90 -2.1 Zogenix ZGNX 7.89 1.1 For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com THE WALL STREET JOURNAL. Thursday, June 23, 2016 | C5 MARKETS DIGEST

Dow Jones Industrial Average S&P 500 Index Nasdaq Composite Index Last Year ago Last Year ago Last Year ago 17780.83 t48.90, or 0.27% Trailing P/E ratio * 18.94 16.35 2085.45 t3.45, or 0.17% Trailing P/E ratio * 23.85 21.73 4833.32 t 10.44, or 0.22% Trailing P/E ratio *22.15 22.81 High, low, open and close for each P/E estimate * 16.94 16.17 High, low, open and close for each P/E estimate * 17.87 17.90 High, low, open and close for each P/E estimate * 18.92 19.35 trading day of the past three months. Dividend yield 2.59 2.32 trading day of the past three months. Dividend yield 2.19 1.98 trading day of the past three months. Dividend yield 1.30 1.18 All-time high 18312.39, 05/19/15 All-time high: 2130.82, 05/21/15 All-time high: 5218.86, 07/20/15

Current divisor 0.14602128057775 18300 2160 5000

18000 2120 4925

17700 2080 4850

17400 2040 4775 Session high 65-day moving average DOWN UP 65-day moving average 17100 2000 65-day moving average 4700

Session open tt Close

Close Open 16800 1960 4625 Session low Bars measure the point change from session's open 16500 1920 4550 Mar. Apr. May June Mar. Apr. May June Mar. Apr. May June * P/E data based on as-reported earnings from Birinyi Associates Inc. Major U.S. Stock-Market Indexes Late Trading Trading Diary Latest 52-Week % chg Most-active and biggest movers among NYSE, NYSE Arca, NYSE MKT Volume, Advancers, Decliners High Low Close Net chg % chg High Low % chg YTD 3-yr. ann. and Nasdaq issues from 4 p.m. to 6:30 p.m. ET as reported by electronic NYSE NYSE MKT Dow Jones trading services, securities dealers and regional exchanges. Minimum Total volume* 827,183,742 10,342,200 Industrial Average 17920.16 17770.36 17780.83 -48.90 -0.27 18120.25 15660.18 -1.0 2.0 6.3 share price of $2 and minimum after-hours volume of 5,000 shares. Adv. volume* 288,858,413 5,676,925 Transportation Avg 7644.73 7589.66 7600.20 -49.09 -0.64 8437.15 6625.53 -8.5 1.2 7.5 Most-active issues in late trading Decl. volume* 516,535,330 3,898,044 Utility Average 684.76 680.16 680.74 -2.92 -0.43 686.58 541.97 22.4 17.8 13.0 Volume After Hours Issues traded 3,182 363 Company Symbol (000) Last Net chg % chg High Low Advances 1,268 162 Total Stock Market 21657.59 21494.32 21504.63 -42.63 -0.20 22211.13 18663.11 -2.7 1.9 9.0 VanEck Vectors Gold Miner GDX 12,727.0 25.22 -0.28 -1.10 25.51 25.15 Declines 1,775 173 Barron's 400 523.42 518.42 518.61 -0.75 -0.15 581.87 446.15 -10.9 0.4 7.3 SPDR S&P 500 SPY 5,854.2 208.96 0.86 0.41 209.37 207.98 Unchanged 139 28 Nasdaq Stock Market iShares MSCI Japan ETF EWJ 5,233.7 11.57 … unch. 11.63 11.57 New highs 120 14 Nasdaq Composite 4875.93 4830.00 4833.32 -10.44 -0.22 5218.86 4266.84 -5.6 -3.5 12.9 PwrShrs QQQ Tr Series 1 QQQ 3,371.9 107.74 0.50 0.47 107.81 107.20 New lows 16 4 Closing tick 24 30 Nasdaq 100 4442.02 4400.88 4404.73 -8.68 -0.20 4719.05 3947.80 -2.6 -4.1 15.2 VanEck Vectors Russia ETF RSX 2,443.2 17.16 -0.01 -0.06 17.20 17.15 Closing Arms† 1.24 0.87 iPath SP 500 VIX Sht Tm VXX 2,079.1 14.86 -0.21 -1.39 15.23 14.79 Standard & Poor's Block trades* 4,593 70 iSh Edge MSCI Min Vol USA USMV 1,925.0 44.91 -0.01 -0.02 44.99 44.91 500 Index 2099.71 2084.36 2085.45 -3.45 -0.17 2128.28 1829.08 -1.1 2.0 9.4 Nasdaq NYSE Arca Vanguard REIT VNQ 1,884.8 85.17 -0.02 -0.02 85.29 85.11 MidCap 400 1503.11 1490.84 1491.21 -3.46 -0.23 1534.32 1238.82 -2.8 6.6 9.5 Total volume* 1,669,487,774 325,661,159 SmallCap 600 712.03 704.94 705.11 -3.17 -0.45 736.38 588.26 -4.2 5.0 9.1 Percentage gainers… Adv. volume* 645,440,316 157,644,967 Decl. volume* 997,287,710 167,632,278 Apogee Enterprises APOG 11.6 45.00 3.50 8.43 45.50 41.15 Other Indexes Issues traded 2,970 1,407 1148.97 -0.42 -10.5 6.0 Barnes & Noble BKS 105.4 11.10 0.66 6.32 11.61 10.41 Russell 2000 1161.28 1148.70 -4.90 1283.92 953.72 1.2 Advances 1,140 524 Herman Miller MLHR 5.70 NYSE Composite 10549.96 10469.71 10473.06 -17.72 -0.17 11066.14 9029.88 -5.4 3.2 5.1 19.1 32.99 1.78 33.18 31.21 Declines 1,647 770 4.96 Value Line 464.51 460.35 460.45 -1.35 -0.29 513.45 383.82 -10.3 3.3 3.7 Gray Television GTN 5.8 11.64 0.55 11.64 11.09 Unchanged 183 113 ENSCO PLC ESV 4.88 NYSE Arca Biotech 3079.49 2977.57 3021.52 20.35 0.68 4431.87 2642.53 -29.1 -20.8 17.5 39.1 10.88 0.51 10.88 10.37 New highs 63 13 New lows 51 3 NYSE Arca Pharma 519.64 512.17 514.20 2.11 0.41 605.94 477.25 -12.4 -5.0 7.5 ...And losers Closing tick 639 KBW Bank 67.45 66.53 66.56 -0.14 -0.21 80.41 56.51 -15.8 -8.9 3.4 -17.96 Tata Motors ADR TTM 24.7 29.41 -6.44 35.85 29.41 Closing Arms† 1.07 0.80 § 90.89 1.83 38.0 -0.2 PHLX Gold/Silver 90.96 88.32 1.63 92.85 38.84 100.6 Steelcase SCS 36.8 13.32 -1.41 -9.57 14.99 13.00 Block trades* 7,206 1,498 § 171.06 0.09 -16.7 -12.0 -8.77 PHLX Oil Service 173.39 170.65 0.16 205.42 128.61 8.5 ICICI Bank ADR IBN 21.6 6.48 -0.62 7.12 6.48 * Primary market NYSE, NYSE MKT NYSE Arca only. § PHLX Semiconductor 705.99 697.64 698.25 -1.15 -0.16 716.49 559.18 -2.5 5.2 14.9 iShares MSCI EAFE SC SCZ 58.7 45.80 -4.28 -8.55 50.08 45.80 †(TRIN) A comparison of the number of advancing and declining issues with the volume of shares rising and falling. An CBOE Volatility 21.22 17.83 21.17 2.69 14.56 40.74 11.95 59.7 16.3 3.9 HMY -8.05 Harmony Gold Mining ADR 38.0 3.20 -0.28 3.48 3.20 Arms of less than 1 indicates buying demand; above 1 Philadelphia Stock Exchange Sources: SIX Financial Information; WSJ Market Data Group indicates selling pressure.

International Stock Indexes Percentage Gainers... Percentage Losers Latest YTD Latest Session 52-Week Latest Session 52-Week Region/Country Index Close Net chg % chg % chg Company Symbol Close Net chg % chg High Low % chg Company Symbol Close Net chg % chg High Low % chg

World The Global Dow 2349.04 –0.32 –0.01 0.5 Nymox Pharmaceutical NYMX 3.15 0.82 35.19 4.37 1.13 120.3 Emergent Biosoltns EBS 31.33 -7.99 -20.32 44.38 27.68 -4.0 The Global Dow Euro 1960.52 –2.18 –0.11 –3.2 Aspen Aerogels ASPN 5.00 0.94 23.15 9.03 3.38 -20.9 Milestone Scientific MLSS 2.15 -0.46 -17.62 3.80 1.15 -40.3 DJ Global Index 310.73 –0.08 –0.02 0.9 Connecture CNXR 3.15 0.50 18.87 11.99 1.15 -68.7 Covenant Transportation A CVTI 18.34 -3.63 -16.52 28.63 13.60 -30.3 16.23 -8.2 -14.95 -85.5 World DJ Global ex U.S. 209.68 0.29 0.14 –0.2 Cemtrex CETX 3.58 0.50 5.19 1.56 Crossroads Systems CRDS 4.55 -0.80 33.40 3.00 Carolina Bank NC CLBH 18.13 2.16 13.53 18.91 11.80 49.1 Yulong Eco-Materials YECO 2.52 -0.42 -14.29 6.80 2.00 ... Americas DJ Americas 502.21 –0.89 –0.18 3.1 RXi Pharmaceuticals RXII 2.75 0.27 10.91 6.49 1.26 -47.6 Ascent Cap Grp Series A ASCMA 15.48 -2.48 -13.81 44.17 7.77 -63.3 Brazil Sao Paulo Bovespa 50156.30 –681.50 –1.34 15.7 Unisys Corp UIS 8.30 0.80 10.67 21.20 7.04 -59.9 Jaguar Animal Health JAGX 1.80 -0.28 -13.46 5.47 1.19 -65.2 Canada S&P/TSX Comp 14003.81 –8.51 –0.06 7.6 Arcadia Biosciences RKDA 2.40 0.22 10.09 7.20 1.10 -61.3 Carver Bancorp CARV 3.83 -0.57 -12.95 7.60 1.92 -22.0 Mexico IPC All-Share 45806.16 100.74 0.22 6.6 Command Security MOC 2.74 0.24 9.73 5.73 1.34 19.8 Lpath LPTN 2.45 -0.32 -11.55 5.88 1.80 -39.0 Chile Santiago IPSA 3112.51 3.29 0.11 5.7 Value Line VALU 16.36 1.44 9.65 19.72 9.93 33.0 Cellular Biomedicine Grp CBMG 12.75 -1.55 -10.84 39.80 10.44 -64.6 Europe Stoxx Europe 600 341.32 1.28 0.38 –6.7 Egalet Corp. EGLT 5.07 0.42 9.03 16.59 4.34 -65.1 DB German Bund Futures BUNL 37.60 -4.40 -10.48 54.31 26.22 41.6 Euro zone Euro Stoxx 318.39 1.01 0.32 –7.8 Kewaunee Scientific KEQU 18.47 1.53 9.02 19.35 15.50 11.9 Tesla Motors TSLA 196.66 -22.95 -10.45 286.65 141.05 -25.8 Belgium Bel-20 3452.83 0.05 0.001 –6.7 GOL Linhas Aereas ADR GOL 8.88 0.73 8.96 25.40 2.44 -64.6 Athersys ATHX 1.95 -0.21 -9.72 2.90 0.94 52.3 France CAC 40 4380.03 0.29 –5.5 12.79 Harmony Gold Mining ADR HMY 3.48 0.28 8.75 4.19 0.53 159.7 TimkenSteel TMST 9.48 -1.01 -9.63 30.10 3.69 -68.2 Germany DAX 10071.06 0.55 55.52 –6.3 Aurinia Pharmaceuticals AUPH 2.65 0.21 8.49 4.30 1.42 -18.3 Inovio Pharmaceuticals INO 10.20 -1.06 -9.41 11.69 4.50 16.0 Israel Tel Aviv 1433.58 4.95 0.35 –6.2 Italy FTSE MIB 17323.27 –107.90 –0.62 –19.1 Netherlands AEX 441.25 0.86 0.20 –0.1 Most Active Stocks Volume Movers Ranked by change from 65-day average* Spain IBEX 35 8702.00 34.70 0.40 –8.8 Volume % chg from Latest Session 52-Week Volume % chg from Latest Session 52-Week Company Symbol (000) 65-day avg Close % chg High Low Company Symbol (000) 65-day avg Close % chg High Low Sweden SX All Share 479.29 2.75 0.58 –5.1 VXX 89,828 3.50 8729 -1.71 Switzerland Swiss Market 7972.14 36.39 0.46 –9.6 iPath SP 500 VIX Sht Tm 25.4 15.07 31.48 12.60 iPath Bloom Energy Sub TR JJE 708 6.33 10.50 4.05 SPDR S&P 500 SPY 89,527 0.2 208.10 -0.16 213.18 181.02 Deutsche x Russell 1000 DEUS 342 6641 25.91 -0.11 26.34 22.82 U.K. FTSE 100 6261.19 34.64 0.56 0.3 Bank Of America BAC 76,552 -13.0 13.61 -0.07 18.48 10.99 IQ 50% Hdg FTSE Eur HFXE 1,739 4425 17.52 4.41 19.97 15.52 1369.73 –0.18 Asia-Pacific DJ Asia-Pacific TSM –2.49 –1.4 VS 2x VIX Short Term TVIX 67,605 43.4 2.88 6.67 19.90 2.10 IQ 50% Hdg FTSE Intl HFXI 1,747 2816 17.42 0.23 22.18 15.58 5270.90 –0.07 Australia S&P/ASX 200 –3.50 –0.5 ProSharesUltVIXST UVXY 66,743 53.5 12.92 7.04 91.25 9.35 Paratek Pharmaceuticals PRTK 3,978 2689 13.24 -0.30 28.74 12.05 China Shanghai Composite 2905.55 26.99 0.94 –17.9 iShares MSCI Emg Markets EEM 66,326 1.7 33.94 0.27 41.07 27.61 Highland/iBoxx Sr Loan SNLN 2,854 2505 18.42 0.11 19.28 17.62 Hong Kong Hang Seng 20795.12 126.68 0.61 –5.1 VanEck Vectors Gold Miner GDX 62,834 -22.6 25.50 2.29 27.03 12.40 Emergent Biosoltns EBS 9,579 1994 31.33 -20.32 44.38 27.68 India S&P BSE Sensex 26765.65 –47.13 –0.18 2.5 Sirius XM Holdings SIRI 49,010 40.3 3.96 -0.63 4.20 3.29 Atlantic Coast Financial ACFC 218 1197 6.05 1.17 6.75 4.32 Japan Nikkei Stock Avg 16065.72 –103.39 –0.64 –15.6 Advanced Micro Devices AMD 47,836 130.5 5.02 -7.89 5.52 1.61 Universal American UAM 1,819 1178 7.72 -7.54 10.84 5.55 Singapore Straits Times 2786.13 –0.12 –3.4 –3.32 iShares MSCI EAFE ETF EFA 44,492 86.4 57.12 -0.05 67.30 50.94 Stone Energy SGY 7,521 971 8.59 4.50 142.90 2.70 South Korea Kospi 1992.58 0.50 1.6 9.88 * Common stocks priced at $5 a share or more with an average volume over 65 trading days of at least 0.36 * Volumes of 100,000 shares or more are rounded to the nearest thousand Taiwan Weighted 8716.25 31.40 4.5 5,000 shares =Has traded fewer than 65 days Sources: SIX Financial Information; WSJ Market Data Group

Consumer Rates and Returns to Investor TreasuryBenchmark yield Yields curve Forex Race Currencies Yen, euro vs. dollar; dollar vs. andYield to Rates maturity of current bills, U.S.-dollar foreign-exchange rates in late New York trading U.S. consumer rates Selected rates notes and bonds major U.S. trading partners 30-year mortgage, Rate US$ vs, US$ vs, A consumer rate against its Wed YTD chg Wed YTD chg benchmark over the past year 5.00% 18% Country/currency in US$ per US$ (%) Country/currency in US$ per US$ (%) Bankrate.com avg†: 3.56% s Yen Thailand baht .02843 35.170 –2.4 3.38% 4.00 12 Americas First Cal of Washington Vietnam dong .00004453 22455 1.4

WSJ Dollar index Argentina peso .0711 14.0670 8.7

4.00% Bellevue, WA 425-296-4559 s t 3.00 6 Brazil real .2960 3.3779 –14.7 Europe First National Financing 3.38% –7.2 –3.7 30-year ﬁxed-rate 3.00 Canada dollar .7787 1.2843 Czech Rep. koruna .04174 23.959 One year ago t 2.00

mortgage Denver, CO 800-910-4439 0 Chile peso .001482 674.70 –4.8 Denmark krone .1519 6.5847 –4.2

3.38% t Colombia peso .0003426 2919.08 –8.0 Euro area euro 1.1297 .8852 –3.9 t 2.00 Pacific Finance Group, LLC 1.00 –6 s Ecuador US dollar 11unch Hungary forint .003592 278.40 –4.1 Bothell, WA 425-354-5602 Wednesday Euro Mexico peso .0541 18.4933 7.5 Iceland krona .008177 122.30 –6.1 10-year Treasury 1.00 0.00 –12 AnchorBank, FSB 3.50% Peru new sol .3043 3.286 –3.8 Norway krone .1206 8.2925 –6.2 note yield 1 3 6 1 2 3 5 710 30 Madison, WI 800-252-6246 2015 2016 Uruguay peso .03266 30.6200 2.4 Poland zloty .2584 3.8694 –1.4 0.00 month(s) years 58.4 –9.9 Guardian Savings Bank 3.50% Venezuela b. fuerte .100150 9.9851 Russia ruble .01543 64.818 J A S O N D J F M A M J maturity Sweden krona .1210 8.2615 –2.2 Cincinnati, OH Asia-Pacific 2015 2016 513-923-4100 Switzerland franc 1.0430 .9588 –4.3 Australian dollar .7501 1.3332 –2.9 Sources: Ryan ALM; Tullett Prebon; WSJ Market Data Group Turkey lira .3456 2.8932 –0.8 China yuan .1522 6.5722 1.2 Yield/Rate (%) 52-Week Range (%) 3-yr chg Ukraine hryvnia .0399 25.0560 4.4 l Hong Kong dollar .1289 7.7587 0.1 Interest rate Last ( )Week ago Low 0 2 4 6 8 High (pct pts) UK pound 1.4706 .6800 0.2 India rupee .01483 67.449 1.9 Federal-funds rate target 0.25-0.5 0.25-0.5 0.00 l 0.50 0.25 Corporate Borrowing Rates and Yields Indonesia rupiah .0000755 13245 –4.3 Middle East/Africa Prime rate* 3.50 3.50 3.25 l 3.50 0.25 Yield (%) 52-Week Total Return (%) Japan yen .009577 104.41 –13.2 Bahrain dinar 2.6529 .3770 unch Bond total return index Close Last Week ago High Low 52-wk 3-yr 0.3 13.5 Libor, 3-month 0.64 0.65 0.28 l 0.69 0.37 Kazakhstan tenge .002943 339.74 Egypt pound .1126 8.8846 Macau pataca .1252 7.9895 –0.2 Israel shekel .2602 3.8425 –1.3 Money market, annual yield 0.27 0.27 0.22 l 0.34 -0.18 Treasury, Ryan ALM 1480.082 1.417 1.331 1.957 1.312 6.664 4.334 Malaysia ringgit .2482 4.0296 –6.4 Kuwait dinar 3.3235 .3009 –0.9 1.23 l ... 1.687 1.629 Five-year CD, annual yield 1.24 1.21 1.53 10-yr Treasury, Ryan ALM 1791.520 1.594 2.480 1.563 5.132 New Zealand dollar .7165 1.3957 –4.6 Oman sul rial 2.5984 .3848 unch 30-year mortgage, fixed† 3.56 3.55 3.52 l 4.19 -0.94 DJ Corporate 365.086 2.763 2.750 3.462 2.749 8.111 5.725 Pakistan rupee .00955 104.700 –0.2 Qatar rial .2747 3.641 –0.1 2.81 l -0.78 Philippines –0.9 Saudi Arabia –0.1 15-year mortgage, fixed† 2.79 2.77 3.37 Aggregate, Barclays Capital 1909.160 2.080 2.020 2.630 2.000 5.176 3.862 peso .0215 46.443 riyal .2667 3.7500 l Singapore dollar .7471 1.3385 –5.6 South Africa rand .0684 14.6158 –5.6 Jumbo mortgages, $417,000-plus† 4.58 4.40 4.14 4.97 -0.13 6.297 –1.589 High Yield 100, Merrill Lynch 2522.341 6.451 8.696 5.842 3.118 South Korea won .0008701 1149.28 –2.3 Five-year adj mortgage (ARM)† 3.03 3.00 2.97 l 3.86 -0.41 Fixed-Rate MBS, Barclays 1958.410 2.300 2.210 2.900 2.180 3.959 3.799 Sri Lanka rupee .0067926 147.22 2.1 Close Net Chg % Chg YTD % Chg l 0.61 New-car loan, 48-month 3.19 3.19 2.96 3.38 –2.4 –5.22 Muni Master, Merrill 514.897 1.432 1.407 2.058 1.375 6.408 5.023 Taiwan dollar .03111 32.143 WSJ Dollar Index 85.47 –0.31–0.36 HELOC, $30,000 4.75 4.73 4.29 l 5.01 -0.46 5.840 7.877 Bankrate.com rates based on survey of over 4,800 online banks. *Base rate posted by 70% of the nation's largest EMBI Global, J.P. Morgan 731.334 5.944 7.128 5.802 6.302 Sources: Tullett Prebon, WSJ Market Data Group 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 Commodities Wednesday 52-Week YTD Pricing trends on someClose raw materials, Net chg % Chg or commodities High Low % Chg % chg DJ Commodity 542.63 -3.25 -0.60 571.61 420.23 -2.72 19.57 ONLINE Reuters-Jefferies CRB 191.81 -1.27 -0.66 227.17 155.01 -14.39 8.81 49.13 -1.44 -18.48 WSJ Real-time U.S. stock quotes are available on WSJ.com. Track most-active stocks, new highs/lows, mutual funds and Crude oil, $ per barrel -0.72 60.27 26.21 32.64 2.677 -3.29 -2.97 .COM ETFs. Plus, get deeper money-flows data and email delivery of key stock-market data. All are available free at Natural gas, $/MMBtu -0.091 2.93 1.64 14.55 1268.00 -0.20 8.14 WSJMarkets.com Gold, $ per troy oz. -2.50 1296.10 1050.80 19.59 For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com C6 | Thursday, June 23, 2016 THE WALL STREET JOURNAL. BIGGEST 1,000 STOCKS

Continued From Page C4 Net Net Net Net Net Net Net Net Net Stock Sym Close Chg Stock Sym Close Chg Stock Sym Close Chg Stock Sym Close Chg Stock Sym Close Chg Stock Sym Close Chg Stock Sym Close Chg Stock Sym Close Chg Stock Sym Close Chg NipponTelegraphADR NTT 43.35 0.14 PulteGroup PHM 18.87 -0.23 SonyADR SNE 28.61 -0.47 TransdigmGrp TDG 261.87 -0.87 WesternGasEquity WGP 37.50 0.01 CBOE Holdings CBOE 63.75 0.53 Intel INTC 32.29 -0.03 Qualcomm QCOM 54.04 0.16 Lowe's LOW 78.35 0.02 NiSource NI 25.25 -0.05 Qihoo360Technology QIHU 73.90 0.37 Southern SO 50.85 -0.05 TransUnion TRU 32.90 -0.27 WesternGasPartners WES 49.01 0.20 CDKGlobal CDK 55.49 -0.70 Intuit INTU 106.45 -1.45 RandgoldRscsADR GOLD 95.27 1.15 LuxotticaGroupADR LUX 52.00 0.28 NobleEnergy NBL 36.79 -0.08 s QuestDiag DGX 79.59 1.72 SoCopper SCCO 27.24 ... TravelersCos TRV 111.83 -0.89 WesternUnion WU 19.09 0.15 CDW CDW 41.37 -0.07 IntuitiveSurgical ISRG 651.45 6.28 t RegenPharm REGN 351.92 6.78 LyondellBasell LYB 78.97 0.06 NokiaADR NOK 5.58 -0.01 QuintilesTransnat Q 63.92 0.09 SowestAir LUV 40.26 -0.26 TreeHouseFoods THS 96.80 -0.27 WestlakeChemical WLK 43.59 0.11 CH Robinson CHRW 71.86 -0.23 JD.comADR JD 21.20 0.07 RossStores ROST 54.43 -0.42 M&T Bnk MTB 117.33 -0.54 NomuraHoldingsADR NMR 3.95 -0.02 RELXADR RENX 16.99 0.01 SouthwesternEnergy SWN 13.47 -0.66 TurkcellIletismADR TKC 8.99 -0.04 WestpacBankingADR WBK 22.18 0.06 CMEGroupClA CME 94.05 0.56 JackHenry JKHY 83.38 -0.10 RyanairHoldingsADR RYAAY 80.20 -0.65 MGMResortsIntl MGM 24.32 -0.21 Nordstrom JWN 37.79 0.04 RELXADR RELX 18.36 0.04 s SpectraEnergy SE 34.56 -0.08 TurquoiseHillRscs TRQ 3.35 -0.11 WestRock WRK 40.46 -0.44 CSX CSX 26.55 -0.08 JazzPharma JAZZ 142.94 1.02 SBACommunications SBAC 102.90 0.24 MPLX MPLX 33.18 -0.41 NorfolkSouthern NSC 86.05 1.04 RPM RPM 51.01 -0.15 SpectraEnergyPtrs SEP 46.93 -0.28 Twitter TWTR 16.13 -0.19 Weyerhaeuser WY 28.62 0.04 CadenceDesign CDNS 24.29 -0.15 JetBlue JBLU 16.20 -0.14 SEIInvestments SEIC 49.45 0.35 s MSCI MSCI 74.83 -0.04 NorthropGrumman NOC 214.89 0.04 RalphLaurenA RL 96.41 -0.76 s SpectrumBrndsHldgs SPB 120.24 1.03 TycoInternational TYC 43.47 0.29 Whirlpool WHR 178.20 1.02 Celgene CELG 99.23 2.37 KLA Tencor KLAC 74.30 0.44 SS&CTechs SSNC 58.13 -0.17 Macerich MAC 81.52 ... Novartis ADR NVS 79.71 0.25 RangeResources RRC 45.45 -1.00 SpiritAeroSystemsA SPR 44.98 0.58 TylerTechnologies TYL 153.86 -0.48 WhiteWaveFoods WWAV 45.95 -1.15 Cerner CERN 55.28 0.47 KraftHeinz KHC 85.21 -0.48 SVBFinancialGroup SIVB 99.10 -0.86 32.84 0.07 MacquarieInfr MIC 71.56 0.07 NovoNordiskADR NVO 52.42 0.27 RayJamFnl RJF 52.64 0.22 SpiritRealtyCap SRC 11.99 -0.07 TysonFoodsClA TSN 62.68 0.50 Williams WMB 20.76 -0.91 CharterComms CHTR 222.39 -0.42 LKQ LKQ Sabre SABR 26.60 0.01 s 85.65 0.99 Macys M 32.81 -0.23 Nucor NUE 49.57 -0.42 Raytheon RTN 134.60 0.01 Sprint S 4.38 0.22 UBSGroup UBS 15.49 0.05 WilliamsPartners WPZ 33.22 -0.08 CheckPointSoftware CHKP 80.98 -0.54 LamResearch LRCX ScrippsNetworksA SNI 63.42 0.21 63.18 0.02 MagelnPtnrs MMP 76.69 1.24 NuSTAREnergy NS 50.65 -0.61 RealtyIncome O 64.36 0.03 StJudeMedical STJ 77.67 0.82 UDR UDR 35.33 0.14 WiproADR WIT 12.25 0.05 s CincinnatiFin CINF 70.58 0.18 LamarAdvertisingA LAMR SeagateTechnology STX 23.87 0.01 59.20 0.43 MagnaInt MGA 38.96 -0.08 OGEEnergy OGE 30.79 -0.36 RedHat RHT 79.75 -0.64 StanleyBlDck SWK 113.65 -0.42 UGI UGI 44.09 0.11 WooriBankADR WF 26.80 0.33 Cintas CTAS 94.60 0.10 LibertyBroadbandA LBRDA SeattleGenetics SGEN 39.11 0.73 59.58 0.40 Mallinckrodt MNK 56.68 0.15 s ONEOK OKE 46.40 -0.41 RegencyCtrs REG 78.52 -0.61 StarwoodHotels HOT 74.97 0.09 USFoodsHolding USFD 23.57 -0.32 Workday WDAY 78.21 -1.20 CiscoSystems CSCO 28.72 -0.05 LibertyBroadbandC LBRDK ShireADR SHPG 175.38 0.76 32.18 0.33 ManpowerGroup MAN 76.30 0.59 ONEOKPartners OKS 39.55 -0.09 RegionsFinancial RF 9.12 -0.05 StarwoodPrTr STWD 20.53 -0.17 UltraparPartADR UGP 20.99 -0.40 WyndhamWorldwide WYN 70.29 -0.21 CitrixSystems CTXS 85.11 -0.13 LibertyGlobalClA LBTYA SignatureBank SBNY 128.54 0.60 14.32 -0.06 OccidentalPetrol OXY 77.10 -0.06 ReinsuranceGrp RGA 95.59 -0.13 StateSt STT 58.49 -0.29 UnderArmour A UA 37.69 -0.67 XL Group XL 32.77 0.19 CognizantTechSolns CTSH 61.72 0.12 LibertyGlobalClC LBTYK 31.38 0.13 SiliconwareADR SPIL 7.94 0.07 ManulifeFinancial MFC 33.12 -1.69 14.75 -0.34 Och-ZiffCapMgmt OZM 3.91 -0.10 RelianceStl RS 76.55 -0.01 StatoilADR STO 16.59 -0.13 UnderArmourClC UA/C 34.32 -0.60 XcelEnergy XEL 42.67 -0.17 Comcast A CMCSA 62.64 0.10 LibertyGlbLiLACAWi LILA SiriusXMHoldings SIRI 3.96 -0.02 MarathonOil MRO 34.40 -1.00 35.26 0.06 OldRepublic ORI 18.93 -0.01 RenaissanceRe RNR 114.99 0.77 Steris STE 67.15 -0.36 UnileverADR UN 45.52 0.12 Xerox XRX 9.78 -0.05 CommScopeHldg COMM 32.00 -0.15 LibertyGlbLiLACClC LILAK SkyworksSolutions SWKS 65.35 -0.11 MarathonPetroleum MPC 24.77 ... 17.22 -0.22 OmegaHealthcare OHI 32.01 -0.35 s RepublicServices RSG 49.68 0.01 STMicroelectronics STM 5.93 0.04 UnileverADR UL 46.36 0.01 Xylem Inc. 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OwensCorning OC 51.25 0.18 Rockwell ROK 117.99 0.77 SynchronyFinancial SYF 25.50 -0.35 US Steel X 17.12 -0.28 Zoetis ZTS 47.33 0.04 DiamondbackEnergy FANG 90.79 -0.13 TDAmeritrade AMTD 29.86 0.10 MarriottInt A MAR 67.75 0.04 McDonalds MCD 120.62 -2.01 PG&E PCG 62.15 -0.48 RockwellCollins COL 85.88 -0.06 SyngentaADR SYT 79.53 -0.45 UnitedTech UTX 101.35 -0.22 DiscoveryCommsB DISCB 26.41 0.60 TFSFinancial TFSL 17.45 -0.06 MarvellTch MRVL 10.22 0.13 McKesson MCK 181.53 2.26 PNC FnlSvcs PNC 84.76 0.23 RogerComm B RCI 39.92 -0.10 Sysco SYY 49.97 -0.10 UnitedHealthGroup UNH 137.90 -0.29 NASDAQ DiscoveryCommsA DISCA 25.99 0.23 T-MobileUS TMUS 42.70 -0.22 Mattel MAT 32.13 ... MeadJohnNutr MJN 87.45 -0.96 POSCOADR PKX 43.86 -0.84 RollinsInc ROL 28.06 -0.02 TEConnectivity TEL 61.94 0.17 UniversalHealthB UHS 134.84 2.18 89.44 -0.19 DiscoveryCommsC DISCK 24.84 0.18 TRowePrice TROW 72.00 0.15 Ansys ANSS MaximIntProducts MXIM 37.15 -0.29 Mednax MD 71.97 1.23 PPG Ind PPG 107.81 -0.25 RoperTechnologies ROP 169.93 -0.35 TEGNA TGNA 22.47 0.06 UnumGroup UNM 34.50 0.10 44.59 -0.28 DollarTree DLTR 91.92 -0.71 TeslaMotors TSLA 196.66-22.95 ARMHoldingsADR ARMH Medivation MDVN 58.89 -0.08 Medtronic MDT 84.26 -0.33 PPL PPL 39.31 -0.36 RoyalBkCanada RY 61.12 -0.28 TELUS TU 32.17 -0.23 VEREIT VER 9.79 -0.04 98.75 0.26 DunkinBrands DNKN 42.65 -0.79 TexasInstruments TXN 62.06 0.02 ASMLHolding ASML MelcoCrownEntADR MPEL 13.90 0.19 MRK 57.04 0.79 PVH Corp. PVH 100.77 -0.71 RoyalBkScotlandADR RBS 7.29 0.17 TERNIUMADR TX 19.42 0.03 VF VFC 64.49 -0.32 60.79 0.39 E Trade ETFC 25.25 0.18 TractorSupply TSCO 92.19 ... Merck AcadiaHealthcare ACHC MercadoLibre MELI 136.47 0.64 42.55 -0.18 PackCpAm PKG 68.22 0.47 RoyalCaribbean RCL 76.12 -0.34 TIMPartADR TSU 9.98 -0.12 VISAClA V 76.53 -0.80 38.32 -0.34 EastWestBancorp EWBC 35.79 -0.18 TrimbleNavigation TRMB 26.82 -0.06 MetLife MET ActivisionBliz ATVI MichaelsCos. MIK 26.80 -0.18 377.94 3.20 PaloAltoNetworks PANW 124.55 -2.32 RoyalDutchADRA RDS/A 53.51 -0.25 TJX TJX 77.03 -0.23 VailResorts MTN 138.47 1.55 94.01 -5.71 eBay EBAY 24.34 -0.36 TripAdvisor TRIP 64.74 0.23 MettlerToledo MTD AdobeSystems ADBE MicrochipTech MCHP 51.59 -0.32 50.80 0.14 ParkerHannifin PH 113.01 -0.38 RoyalDutchADRB RDS/B 54.65 -0.34 TahoeResources TAHO 13.14 0.10 ValeADR VALE 4.69 0.06 54.70 ... 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NYSE MKT NewmontMining NEM 35.72 0.89 PrudentialFin PRU 74.03 0.31 s Smucker SJM 147.09 1.09 TotalADR TOT 48.31 -0.26 WellsFargo WFC 46.97 -0.26 BlackBerry BBRY 6.74 -0.31 IdexxLab IDXX 90.04 0.38 PilgrimPride PPC 25.11 0.12 s BritishAmTobADR BTI 125.12 0.62 NextEraEnergy NEE 123.64 -0.63 PrudentialADR PUK 38.72 0.23 SnapOn SNA 152.36 -2.16 TotalSystemSvcs TSS 52.39 -0.33 Welltower HCN 72.37 -1.06 BlueBuffaloPetProd BUFF 24.60 -0.27 IcahnEnterprises IEP 53.44 -0.12 PricelineGroup PCLN 1360.10 17.05 CheniereEnergy LNG 35.45 0.02 NielsenHoldings NLSN 53.47 -0.06 PublicServiceEnt PEG 44.09 -0.18 SOQUIMICH ADR SQM 23.88 -0.20 ToyotaMotorADR TM 106.50 -0.62 WestPharmSvcs WST 75.13 0.49 Broadcom AVGO 155.14 -0.67 Illumina ILMN 140.89 1.84 Qiagen QGEN 21.75 0.36 CheniereEngyPtnr CQP 29.56 0.05 NikeClB NKE 54.57 -0.20 PublicStorage PSA 240.13 -0.99 SonocoProducts SON 47.96 0.12 s TransCanada TRP 44.49 -0.16 WestarEnergy WR 55.84 0.06 s CA CA 33.22 0.12 Incyte INCY 78.50 0.90 Qorvo QRVO 55.64 -0.69 ImpOil IMO 31.06 -0.41

Bonds | WSJ.com/bonds Tracking Bond Benchmarks Return on investment and spreads over Treasurys and/or yields paid to investors compared with 52-week highs and lows for different types of bonds Total return Yield (%), 52-Week Range l Latest Total return Yield (%), 52-Week Range l Latest close YTD total return (%) Index Latest Low 0 5 10 15 20 25 High close YTD total return (%) Index Latest Low 04 8 121620High 1909.16 4.4 Broad market Barclays Aggregate 2.080 2.000 l 2.630 716.71 5.1 France 0.550 0.520 l 1.360 2638.01 6.5 U.S. Corporate Barclays Capital 3.010 2.970 l 3.710 519.76 5.1 Germany 0.130 0.030 l 1.000 2528.08 4.4 Intermediate 2.410 2.380 l 3.120 296.46 6.6 Japan 0.050 0.030 l 0.870 3527.39 11.6 Long term 4.350 4.290 l 5.130 571.12 5.2 Netherlands 0.300 0.230 l 1.120 551.44 5.3 Double-A-rated 2.190 2.140 l 2.700 881.45 6.8 U.K. 1.790 1.570 l 2.480 665.05 7.4 Triple-B-rated 3.480 3.450 l 4.450 731.33 9.0 Emerging Markets ** 5.840 5.802 l 7.128 361.58 9.3 High Yield Constrained Merrill Lynch 7.253 6.314 l 10.099 *Constrained indexes limit individual issuer concentrations to 2%; the High Yield 100 are the 100 largest bonds In U.S. - dollar terms Euro-zone bonds 332.94 19.2 Triple-C-rated 14.825 11.137 l 21.753 ** EMBI Global Index Sources: S&P Dow Jones Indices; Merrill Lynch; Barclays Capital; J.P.Morgan 2522.34 6.2 High Yield 100 6.297 5.842 l 8.696 329.64 8.5 Global High Yield Constrained 6.876 6.237 l 9.437 Global Government Bonds: Mapping Yields 274.25 4.2 Europe High Yield Constrained 4.305 4.140 l 6.500 Yields and spreads over or under U.S. Treasurys on benchmark two-year and 10-year government bonds in s t 1625.01 2.7 U.S Agency Barclays 1.300 1.240 l 1.680 selected other countries; arrows indicate whether the yield rose( ) or fell ( ) in the latest session 1457.26 1.9 10-20 years 1.110 1.010 l 1.480 Country/ Yield (%) Spread Under/Over U.S. Treasurys, in basis points Coupon (%) Maturity, in years Latest(l) 0 20 40 60 80 100 120 Previous Month ago Year ago Latest Prev Year ago 3284.32 9.1 20-plus years 2.740 2.620 l 3.370 0.625 U.S. 2 0.746 t l 0.766 0.880 0.662 2.6 Barclays 1958.41 Mortgage-Backed 2.300 2.180 l 2.900 1.625 10 1.684 t l 1.710 1.843 2.376 2.2 (GNMA) 2.230 l 1931.01 Ginnie Mae 2.090 2.860 3.250 Australia 2 1.728 s l 1.681 1.639 1.962 98.2 91.5 130.0 1147.26 2.7 Fannie mae (FNMA) 2.320 2.190 l 2.910 4.250 10 2.230 s l 2.171 2.315 2.961 54.6 46.2 58.5 1765.52 2.8 Freddie Mac (FHLMC) 2.340 2.210 l 2.930 1.000 France 2 -0.448 s l -0.454 -0.405 -0.128 -119.4 -122.0 -79.0 514.90 3.1 Muni Master Merrill Lynch 1.432 1.375 l 2.058 0.500 10 0.418 t l 0.419 0.510 1.248 -126.6 -129.1 -112.9 359.52 3.2 7-12 year 1.458 1.393 l 2.139 0.000 Germany 2 -0.587 t l -0.574 -0.497 -0.180 -133.3 -134.0 -84.2 401.37 3.9 12-22 year 1.768 1.694 l 2.599 s l 387.76 5.6 22-plus year 2.210 2.159 l 3.321 0.500 10 0.063 0.052 0.167 0.887 -162.2 -165.8 -148.9 Italy s l 2357.83 5.2 Yankee Barclays 2.540 2.520 l 3.110 4.500 2 -0.014 -0.026 -0.042 0.304 -76.0 -79.1 -35.8 2.000 10 1.359 t l 1.375 1.487 2.172 -32.6 -33.5 -20.5 547.59 5.0 Global Government J.P. Morgan 1.040 0.960 l 1.760 Japan s l 771.87 2.1 Canada 1.470 1.350 l 1.950 0.100 2 -0.239 -0.244 -0.237 0.010 -98.6 -101.0 -65.2 371.92 3.9 EMU 0.814 0.775 l 1.609 0.100 10 -0.144 t l -0.140 -0.105 0.428 -182.9 -184.9 -194.9 4.500 Spain 2 0.002 s l -0.004 -0.085 0.310 -74.4 -76.9 -35.2 1.519 s l -16.5 -31.6 Dividend Changes 1.950 10 1.513 1.581 2.060 -19.6 Amount Payable / 1.250 U.K. 2 0.493 t l 0.507 0.447 0.750 -25.3 -25.9 8.9 Company Symbol Yld % New/Old Frq Record Continued from Page C3 2.000 10 1.315 s l 1.290 1.453 2.116 -37.0 -41.9 -26.0 iShares MSCI Malaysia ETF EWM 2.6 .10528 SA Jun28 /Jun24 Amount Payable / iShares MSCI Mexico Cap EWW 2.3 .57915 Jun28 /Jun24 Company Symbol Yld % New/Old Frq Record SA Source: Tullett Prebon iShares MSCI Netherlands EWN 2.9 .346 SA Jun28 /Jun24 EFAV iSh Edge MSCI Min Vl EAFE 3.0 1.00308 SA Jun28 /Jun24 iShares MSCI Pacific xJp EPP 3.4 .66133 SA Jun28 /Jun24 EEMV Corporate Debt iSh Edge MSCI Min Vol EM 2.5 .64192 SA Jun28 /Jun24 iShares MSCI Philippines EPHE 0.7 .14099 SA Jun28 /Jun24 iSh Edge MSCI Min Vol Eur EUMV 4.3 .50051 Jun28 /Jun24 SA iShares MSCI Poland Cap EPOL 0.5 .04251 SA Jun28 /Jun24 Price moves by a company’s debt in the credit markets sometimes mirror and sometimes anticipate moves in ACWV iSh Edge MSCI Min Vol Gl 2.1 .78359 SA Jun28 /Jun24 iShares MSCI Sweden ETF EWD 7.9 1.11923 SA Jun28 /Jun24 ISCF that same company’s share price. Here’s a look at both for two companies in the news. iSh Edge MSCI Mult Int SC 2.4 .29843 SA Jun28 /Jun24 iShares MSCI Turkey ETF TUR 2.8 .88604 SA Jun28 /Jun24 INTF iSh Edge MSCI Multif Intl 1.7 .20321 SA Jun28 /Jun24 iShares MSCI World ETF URTH 2.4 .82939 SA Jun28 /Jun24 ACWF iSh Edge MSCI Multifactor 2.0 .2279 SA Jun28 /Jun24 Janus Velocity Tail LC TRSK 1.8 .12305 Q Jun29 /Jun24 Investment-grade spreads that tightened the most… AAXJ iSh MSCI AC xJapan 1.2 .33486 SA Jun28 /Jun24 Janus Velocity Vol Hdg LC SPXH 2.2 .16244 Q Jun29 /Jun24 Spread*, in basis points Stock Performance ACWX iSh MSCI ACWI ex US 3.7 .72701 SA Jun28 /Jun24 Lattice Dev xUS Strategy RODM 3.2 .37747 SA Jun29 /Jun24 Issuer Symbol Coupon (%) Maturity Current One-day change Last week Close ($) % chg ICOL iSh MSCI Colombia Capped 1.7 .10975 SA Jun28 /Jun24 Lattice EM Strategy ETF ROAM 2.0 .20579 SA Jun29 /Jun24 EDEN WPZ 397 –24 –0.24 iSh MSCI Denmark Capped 2.2 .6205 SA Jun28 /Jun24 Lattice Gl SC Strategy ROGS 1.9 .22639 SA Jun29 /Jun24 Williams Partners 4.875 May 15, ’23 433 33.22 iSh MSCI EM Horizon EMHZ 1.4 .13417 Jun28 /Jun24 SA Lattice US Equity Strat ROUS 2.1 .12285 Q Jun29 /Jun24 BB&T BBT 5.375 Aug. 15, ’22 124 –22 n.a. 35.98 –0.03 EEML iSh MSCI Emg Mkt Lat Amer 1.9 .27353 SA Jun28 /Jun24 LCap Growth Opps AlphaDEX FTC 0.8 .0963 Q Jun30 /Jun24 EEMA Australia and New Zealand Banking ANZ 6.750 June 15, ’49 385 –21 410 ...... iSh MSCI Emg Mkts Asia 1.0 .25164 SA Jun28 /Jun24 NASDAQ Cl Edge Smrt Grid GRID 2.4 .2125 Q Jun30 /Jun24 EUFN iSh MSCI Europe Finls 7.5 .66723 SA Jun28 /Jun24 NASDAQ Cln Edge Gr Enrgy QCLN 1.4 .0515 Q Jun30 /Jun24 Enterprise Products Operating EPD 7.034 Jan. 15, ’68 109 –20 148 … … IEUS iSh MSCI Europe Small-Cap 3.6 .79959 SA Jun28 /Jun24 NASDAQ-100 Ex-Tech Sector QQXT 0.4 .0417 Q Jun30 /Jun24 EFNL Santander Issuances Sau* SANTAN 334 ... iSh MSCI Finland Capped 4.9 .77341 SA Jun28 /Jun24 ProSh Large Cap Core Plus CSM 1.4 .18042 Q Jun30 /Jun24 5.179 Nov. 19, ’25 –15 374 ... FM iSh MSCI Frontier 100 4.1 .50874 SA Jun28 /Jun24 ProShares Div Growers EFAD 4.2 .37769 Q Jun30 /Jun24 iSh MSCI Germany SmCap EWGS 3.2 .66424 Jun28 /Jun24 SA ProShares DJ Brookfield TOLZ 3.9 .39113 Q Jun30 /Jun24 …And spreads that widened the most SLVP iSh MSCI Gl Silver Miners 0.3 .01699 SA Jun28 /Jun24 ProShares Gl Listed Prv PEX 5.4 .5142 Q Jun30 /Jun24 iSh MSCI Glbl Gold Miners RING 0.1 .00651 Jun28 /Jun24 SA ProShares Hdg FTSE Europe HGEU 11.9 1.0639 Q Jun30 /Jun24 JPMorgan Chase JPM 7.900 April 30, ’49 450 26 468 62.71 –0.38 VEGI iSh MSCI Global Agri Prd 2.6 .30352 SA Jun28 /Jun24 ProShares Hdg FTSE Japan HGJP 12.8 .9067 Q Jun30 /Jun24 FILL Encana ECACN 3.900 Nov. 15, ’21 365 25 n.a...... iSh MSCI Global En Prod 2.8 .26672 SA Jun28 /Jun24 ProShares Inflation Exp RINF 0.9 .06299 Q Jun30 /Jun24 PICK iSh MSCI Global Met&Mn Pr 0.8 .04023 SA Jun28 /Jun24 ProShares Merger ETF MRGR 0.6 .05461 Q Jun30 /Jun24 Aflac AFL 2.400 March 16, ’20 55 19 57 70.84 0.41 SMIN iSh MSCI India Small-Cap 2.3 .36764 SA Jun28 /Jun24 ProShares MSCI Eur Div EUDV 2.8 .26958 Q Jun30 /Jun24 ENOR Citigroup C 2.500 Sept. 26, ’18 97 16 101 42.68 –0.56 iSh MSCI Norway Capped 4.1 .41687 SA Jun28 /Jun24 ProShares RAFI Long/Short RALS 0.8 .07625 Q Jun30 /Jun24 iSh MSCI NZ Capped ENZL 2.6 .54223 Jun28 /Jun24 SA ProShares Russ 2000 Div SMDV 1.3 .14683 Q Jun30 /Jun24 Scripps Networks Interactive SNI 2.800 June 15, ’20 136 15 n.a. 63.42 0.33 QAT iSh MSCI Qatar Capped 7.4 .6699 SA Jun28 /Jun24 ProShares S&P 500 Ex-Fin SPXN 1.8 .18887 Q Jun30 /Jun24 KSA Bank of America BAC 8.000 Jan. 30, ’49 536 12 570 13.61 –0.07 iSh MSCI Saudi Arabia Cap 4.4 .50655 SA Jun28 /Jun24 ProShares S&P 500 Ex-Tech SPXT 1.6 .17285 Q Jun30 /Jun24 EWS iSh MSCI Singapore 1.2 .06392 SA Jun28 /Jun24 ProShares S&P 500 xEnergy SPXE 1.7 .17878 Q Jun30 /Jun24 Welltower HCN 6.500 March 15, ’41 245 11 n.a. 72.37 –1.44 iSh MSCI South Africa EZA 6.1 1.59918 Jun28 /Jun24 SA ProShares S&P MC 400 REGL 1.2 .13782 Q Jun30 /Jun24 CVX 55 –0.92 EWP Chevron 1.718 June 24, ’18 10 62 102.29 iSh MSCI Spain Capped 4.1 .551 SA Jun28 /Jun24 ProShares S&P500 Div Aris NOBL 1.8 .24669 Q Jun30 /Jun24 EWL iSh MSCI Switzerland Cap 5.3 .79252 SA Jun28 /Jun24 ProShares S&P500 xHlth Cr SPXV 1.8 .19727 Q Jun30 /Jun24 THD iSh MSCI Thailand Capped 3.3 1.1175 SA Jun28 /Jun24 ProShares Ultra Dow30 DDM 1.3 .22585 Q Jun30 /Jun24 High-yield issues with the biggest price increases… iSh MSCI UAE Capped UAE 7.6 .61886 Jun28 /Jun24 SA ProShares Ultra Finls UYG 0.6 .09163 Q Jun30 /Jun24 Bond Price as % of face value Stock Performance EWUS iSh MSCI UK Small-Cap 2.7 .52383 SA Jun28 /Jun24 ProShares Ultra Hi Yield UJB 2.7 .35165 Q Jun30 /Jun24 Issuer Symbol Coupon (%) Maturity Current One-day change Last week Close ($) % chg EWU iSh MSCI United Kingdom 4.9 .39753 SA Jun28 /Jun24 ProShares Ultra Hlth Care RXL 0.1 .01978 Q Jun30 /Jun24 CRBN iShares ACWI Low Carbon 2.7 1.25151 SA Jun28 /Jun24 ProShares Ultra Inv Grade IGU 1.4 .23618 Q Jun30 /Jun24 Boxer Parent BMC 9.000 Oct. 15, ’19 86.000 3.63 76.000 ...... ACWI iShares MSCI ACWI ETF 2.6 .7437 SA Jun28 /Jun24 ProShares Ultra MidCap400 MVV 0.4 .07948 Q Jun30 /Jun24 EPU NeuStar NSR 4.500 Jan. 15, ’23 95.000 3.00 87.500 24.00 –1.88 iShares MSCI All Peru Cap 1.2 .18803 SA Jun28 /Jun24 ProShares Ultra Oil & Gas DIG 1.3 .11676 Q Jun30 /Jun24 EWA iShares MSCI Australia 2.8 .27591 SA Jun28 /Jun24 ProShares Ultra Oil & Gas UOP 0.1 .00549 Q Jun30 /Jun24 Mariposa Borrower NMG 8.000 Oct. 15, ’21 82.500 2.75 76.750 ...... iShares MSCI Austria Cap EWO 3.6 .27282 Jun28 /Jun24 SA ProShares Ultra QQQ QLD 0.2 .04036 Q Jun30 /Jun24 REN 60.250 –2.65 EWK Resolute Energy 8.500 May 1, ’20 2.50 n.a. 3.67 iShares MSCI Belgium Cap 1.6 .14746 SA Jun28 /Jun24 ProShares Ultra S&P500 SSO 0.5 .087 Q Jun30 /Jun24 EWZ iShares MSCI Brazil Cap 1.5 .20828 SA Jun28 /Jun24 ProShares Ultra Tech ROM 0.3 .05175 Q Jun30 /Jun24 Advanced Micro Devices AMD 7.500 Aug. 15, ’22 90.250 2.25 84.000 5.02 –7.89 EWZS iShares MSCI Brazil SC 3.2 .14811 SA Jun28 /Jun24 ProShares Ultra Utilities UPW 1.4 .42942 Q Jun30 /Jun24 BKF First Quantum Minerals FM 7.000 Feb. 15, ’21 81.000 2.25 76.500 … … iShares MSCI BRIC ETF 1.3 .19137 SA Jun28 /Jun24 ProShares UltraPro Dow 30 UDOW 0.6 .09957 Q Jun30 /Jun24 EWC iShares MSCI Canada ETF 1.6 .19575 SA Jun28 /Jun24 ProShr Ultra 20 + Yr Trea UBT 0.9 .21596 Q Jun30 /Jun24 Walter Investment Management WAC 7.875 Dec. 15, ’21 51.000 2.25 n.a. 3.31 –0.30 iShares MSCI Chile Capped ECH 3.7 .67644 Jun28 /Jun24 SA ProShrs Ultra 7-10 Yr Tr UST 0.5 .07774 Q Jun30 /Jun24 Sprint Capital S 6.875 Nov. 15, ’28 78.000 2.00 74.219 … … ECNS iShares MSCI China SC 3.8 .73611 SA Jun28 /Jun24 ProShrs Ultra Industrials UXI 0.3 .08083 Q Jun30 /Jun24 EFA iShares MSCI EAFE ETF 4.1 1.17482 SA Jun28 /Jun24 ProShrs Ultra Real Estate URE 0.5 .16209 Q Jun30 /Jun24 EFG iShares MSCI EAFE Growth 3.1 1.005 SA Jun28 /Jun24 ProShrs Ultra Russell2000 UWM 0.3 .05889 Q Jun30 /Jun24 …And with the biggest price decreases SCZ iShares MSCI EAFE SC 2.7 .67597 SA Jun28 /Jun24 ProShrs UltraPro S&P 500 UPRO 0.5 .08269 Q Jun30 /Jun24 EFV AMD 91.000 –7.89 iShares MSCI EAFE Value 4.8 1.06734 SA Jun28 /Jun24 ProShs Ult S&P Region Bkg KRU 1.0 .21697 Q Jun30 /Jun24 Advanced Micro Devices 7.750 Aug. 1, ’20 –3.00 88.500 5.02 iShares MSCI Emg Markets EEM 1.6 .26598 Jun28 /Jun24 SA ProShs Ultra Basic Matls UYM 0.6 .06459 Q Jun30 /Jun24 L Brands LB 6.950 March 1, ’33 99.250 –1.75 n.a. 68.64 0.66 EEMS iShares MSCI Emg Mkt SC 2.3 .46194 SA Jun28 /Jun24 ProShs Ultra Cnsmr Svcs UCC 0.2 .0435 Q Jun30 /Jun24 EZU Western Digital WDC 10.500 Jan. 4, ’24 105.750 –1.75 104.725 48.35 –1.06 iShares MSCI Eurozone ETF 5.0 .84092 SA Jun28 /Jun24 ProShs Ultra Consumer Gds UGE 0.6 .18778 Q Jun30 /Jun24 EWQ iShares MSCI France ETF 5.2 .61415 SA Jun28 /Jun24 ProShs Ultra Semicon USD 0.6 .13069 Q Jun30 /Jun24 Dell DELL 5.875 June 15, ’19 106.500 –1.38 106.000 ...... EWG iShares MSCI Germany ETF 4.9 .61284 SA Jun28 /Jun24 Recon Cap DAX Germany DAX 2.1 .1275 Q Jun28 /Jun24 EWH FCX 77.700 –0.95 iShares MSCI Hong Kong 4.0 .38946 SA Jun28 /Jun24 Recon Cap NASDAQ100 Cvd QYLD 11.3 .20241 M Jun28 /Jun24 Freeport–McMoRan 5.450 March 15, ’43 –1.30 72.250 11.50 iShares MSCI India ETF INDA 1.2 .16893 Jun28 /Jun24 SA RiverFront Strat Incm Fd RIGS 6.4 .13199 M Jun29 /Jun24 Caesars Entertainment Resort Properties CERPLC 11.000 Oct. 1, ’21 98.375 –1.13 99.000 ...... iShares MSCI Indonesia EIDO 2.2 .25335 SA Jun28 /Jun24 S&P 500 Tail Hedge VIXH 1.5 .0861 Jun30 /Jun24 Q CBSOAM 103.250 ... iShares MSCI Ireland Cap EIRL 1.5 .30313 SA Jun28 /Jun24 Outfront Media Capital 5.625 Feb. 15, ’24 –1.00 103.000 ... iShares MSCI Israel Cap EIS 1.5 .35208 SA Jun28 /Jun24 Foreign Kinross Gold KCN 5.950 March 15, ’24 98.250 –0.95 98.125 ...... iShares MSCI Italy Capped EWI 5.7 .33022 SA Jun28 /Jun24 Horizons S&P 500 Cov Call HSPX 2.5 .09122 M Jul07 /Jun24 iShares MSCI Japan ETF EWJ 1.6 .09181 SA Jun28 /Jun24 iSh MSCI Russia Capped ERUS 0.5 .03482 SA Jun28 /Jun24 *Estimated spread over 2-year, 3-year, 5-year, 10-year or 30-year hot-run Treasury; 100 basis points=one percentage pt.; change in spread shown is for Z-spread. iShares MSCI Japan SC SCJ 1.6 .47706 SA Jun28 /Jun24 iShares MSCI China ETF MCHI 1.5 .30343 SA Jun28 /Jun24 Note: Data are for the most active issue of bonds with maturities of two years or more iShares MSCI Kokusai ETF TOK 2.8 .72079 SA Jun28 /Jun24 United Microelectron ADR UMC 4.5 .08767 A Aug18 /Jul14 Sources: MarketAxess Corporate BondTicker; WSJ Market Data Group For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com THE WALL STREET JOURNAL. Thursday, June 23, 2016 | C7 COMMODITIES WSJ.com/commodities

Futures Contracts |WSJ.com/commodities Contract Open Contract Open Contract Open Open High hilo Low Settle Chg interest Open High hilo Low Settle Chg interest Open High hilo Low Settle Chg interest Treasury Notes (CBT)-$100,000; pts 32nds of 100% Australian Dollar (CME)-AUD 100,000; $ per AUD Metal & Petroleum Futures 131-065 131-135 131-050 3.0 2,803,744 .7429 .7502 .7417 .0036 78,430 Soybean Meal (CBT)-100 tons; $ per ton. Sept 131-110 Sept .7482 Contract Open .7414 .7478 .7397 .0036 484 July 392.80 395.80 389.90 391.00 –2.30 50,013 (CBT)-$100,000; pts 32nds of 100% Dec .7459 Open High hi lo Low Settle Chg interest 5 Yr. Treasury Notes Dec 387.80 394.20 387.20 391.00 –.50 151,615 June 121-167 121-190 121-162 121-180 1.7 53,670 Mexican Peso (CME)-MXN 500,000; $ per MXN .05327 .05366 .05295 .00032 111,079 Copper-High (CMX)-25,000 lbs.; $ per lb. Soybean Oil (CBT)-60,000 lbs.; cents per lb. Sept 121-037 121-087 121-035 121-070 2.2 2,674,798 Sept .05360 2.1410 2.1410 2.1315 2.1355 0.0190 786 -€125,000; $ per € June July 31.43 31.86 31.36 31.55 .19 60,668 2 Yr. Treasury Notes (CBT)-$200,000; pts 32nds of 100% Euro (CME) 2.1265 2.1455 2.1080 2.1360 0.0180 94,884 1.1286 1.1375 1.1272 .0052 311,866 Sept Dec 32.07 32.56 32.00 32.24 .24 152,324 June 109-125 109-127 109-125 109-135 .7 6,365 Sept 1.1346 1.1318 1.1413 1.1313 .0052 3,557 Gold (CMX)-100 troy oz.; $ per troy oz. Rough Rice (CBT)-2,000 cwt.; $ per cwt. Sept 109-095 109-115 109-092 109-110 1.0 1,011,205 Dec 1.1385 1267.00 1269.20 1264.90 1268.00 –2.50 538 1107.50 1107.50 1097.50 –4.50 3,032 June July 1098.50 30 Day Federal Funds (CBT)-$5,000,000; 100 - daily avg. 1271.40 1273.50 1263.80 1270.00 –2.50 412,919 1127.50 1129.00 1122.50 –6.50 5,611 Aug Sept 1123.00 June 99.630 99.630 99.628 99.628 … 84,725 Index Futures 1275.30 1275.60 1267.60 1273.20 –2.50 31,179 Oct Wheat (CBT)-5,000 bu.; cents per bu. Aug 99.600 99.610 99.600 99.605 .005 249,719 Mini DJ Industrial Average (CBT)-$5 x index Dec 1278.10 1279.50 1270.40 1276.30 –2.50 72,912 460.00 465.25 458.25 .25 72,589 July 458.75 -$100,000; pts 32nds of 100% Sept 17729 17825 17673 17688 –49 112,183 Feb'17 1280.60 1281.90 1273.20 1279.30 –2.50 11,379 474.75 478.25 471.50 –.25 188,505 10 Yr. Del. Int. Rate Swaps (CBT) Sept 472.25 105.672 105.953 105.656 .188 26,752 Dec 17661 17707 17593 17596 –49 190 1285.80 1285.80 1281.50 1284.50 –2.50 12,691 Sept 105.938 June Wheat (KC)-5,000 bu.; cents per bu. S&P 500 Index (CME)-$250 x index 1 Month Libor (CME)-$3,000,000; pts of 100% Palladium (NYM) - 50 troy oz.; $ per troy oz. July 436.00 439.50 t 433.00 433.00 –2.00 45,882 Sept 2078.20 2091.00 2076.00 2076.70 –3.70 63,698 July ...... 99.5400 .0025 1,604 June 543.85 547.30 543.85 564.95 10.90 12 Sept 453.00 457.00 t 450.75 451.00 –1.50 103,866 Dec ... 2083.80 2069.80 2069.00 –3.80 1,058 552.00 564.20 548.50 10.90 23,525 -$1,000,000; pts of 100% Sept 562.25 Wheat (MPLS)-5,000 bu.; cents per bu. Eurodollar (CME) Mini S&P 500 (CME)-$50 x index 557.90 562.00 556.95 10.90 382 99.3300 99.3400 99.3300 99.3375 .0100 144,503 Dec 563.00 July 524.50 530.50 524.50 525.25 .50 10,992 July Sept 2079.25 2091.25 2075.25 2076.75 –3.75 2,769,327 99.2650 99.2800 99.2650 99.2750 .0150 1,173,315 Platinum (NYM)-50 troy oz.; $ per troy oz. Sept 534.50 540.25 534.00 534.75 .25 20,678 Sept Dec 2071.00 2083.50 2068.00 2069.00 –3.75 11,559 Dec 99.1800 99.2050 99.1800 99.1950 .0100 1,308,796 June 989.10 989.10 989.10 983.10 2.00 2 Cattle-Feeder (CME)-50,000 lbs.; cents per lb. Mini S&P Midcap 400 (CME)-$100 x index Dec'17 98.9550 98.9850 98.9550 98.9750 .0150 1,151,968 Oct 981.90 991.00 978.70 985.60 1.80 36,272 Aug 139.500 140.700 137.025 140.175 .900 26,180 Sept 1489.10 1499.50 1485.60 1486.60 –3.70 83,313 Silver (CMX)-5,000 troy oz.; $ per troy oz. Sept 138.200 139.325 135.975 138.800 .675 4,930 Mini Nasdaq 100 (CME)-$20 x index June 17.230 17.240 17.230 17.305 –0.006 96 Cattle-Live (CME)-40,000 lbs.; cents per lb. Currency Futures Sept 4397.3 4434.0 4391.0 4394.5 –5.8 218,161 Sept 17.370 17.410 17.175 17.367 –0.007 88,700 June 115.050 115.900 114.200 115.350 .300 7,175 Japanese Yen (CME)-¥12,500,000; $ per 100¥ Dec 4388.3 4426.0 4386.5 4387.3 –5.5 152 111.425 112.750 110.575 111.625 .175 121,296 .9573 .9616 .9568 .9605 .0031 144,088 Crude Oil, Light Sweet (NYM)-1,000 bbls.; $ per bbl. Aug Sept Mini Russell 2000 (ICE-US)-$100 x index .9609 .9649 .9603 .9638 .0030 483 Aug 50.22 50.54 48.40 49.13 –0.72 462,740 Hogs-Lean (CME)-40,000 lbs.; cents per lb. Dec Sept 1147.40 1157.50 1142.70 1143.10 –5.40 331,604 Sept 50.79 51.11 49.04 49.78 –0.67 254,511 July 86.700 86.900 84.375 84.475 –1.725 33,835 Canadian Dollar (CME)-CAD 100,000; $ per CAD Dec 1143.30 1143.30 1138.80 1138.10 –5.90 924 Oct 51.29 51.53 49.54 50.28 –0.65 105,915 Aug 88.875 88.975 85.625 85.850 –2.625 102,822 Sept .7807 .7849 .7781 .7797 –.0017 113,845 Mini Russell 1000 (ICE-US)-$100 x index Nov 51.75 51.96 50.03 50.74 –0.64 87,780 Lumber (CME)-110,000 bd. ft., $ per 1,000 bd. ft. Dec .7812 .7849 .7782 .7798 –.0017 3,914 Sept 1151.70 1157.90 1148.90 1148.90 –2.80 5,457 298.90 301.80 296.60 .60 1,756 Dec 52.11 52.34 50.41 51.14 –0.62 236,195 July 299.40 British Pound (CME)-£62,500; $ per £ U.S. Dollar Index (ICE-US)-$1,000 x index 308.20 310.50 306.50 … 2,691 Dec'17 53.50 53.62 52.23 52.80 –0.30 142,099 Sept 308.20 Sept 1.4666 1.4783 1.4649 1.4697 .0024 198,062 Sept 94.12 94.18 93.50 93.76 –.30 47,711 NY Harbor ULSD (NYM)-42,000 gal.; $ per gal. Milk (CME)-200,000 lbs., cents per lb. Dec 1.4699 1.4789 1.4662 1.4706 .0023 727 Dec 94.17 94.17 93.57 93.80 –.30 1,741 13.23 13.24 13.22 13.22 .01 4,510 July 1.5255 1.5353 1.4825 1.5048 –.0119 51,631 June Swiss Franc (CME)-CHF 125,000; $ per CHF July 15.05 15.07 14.82 14.91 –.16 5,225 Aug 1.5334 1.5452 1.4929 1.5153 –.0110 81,605 Sept 1.0443 1.0522 1.0436 1.0484 .0033 38,436 Source: SIX Financial Information -10 metric tons; $ per ton. Gasoline-NY RBOB (NYM)-42,000 gal.; $ per gal. Cocoa (ICE-US) 3,192 3,208 3,192 3,205 10 296 July 1.6015 1.6131 1.5729 1.5882 –.0047 48,038 July 3,148 3,160 3,136 3,156 10 86,688 Aug 1.6115 1.6224 1.5805 1.5948 –.0086 105,309 Sept Coffee (ICE-US)-37,500 lbs.; cents per lb. Natural Gas (NYM)-10,000 MMBtu.; $ per MMBtu. |WSJ.com/commodities Wednesday, June 22, 2016 July 138.50 139.60 136.50 136.95 –1.55 1,302 Cash Prices July 2.765 2.775 2.657 2.677 –.091 81,633 Sept 141.10 142.20 138.75 139.70 –1.25 102,257 Aug 2.792 2.804 2.692 2.711 –.087 190,820 These prices reflect buying and selling of a variety of actual or “physical” commodities in the marketplace— -112,000 lbs.; cents per lb. Sept 2.812 2.815 2.706 2.724 –.089 207,385 Sugar-World (ICE-US) separate from the futures price on an exchange, which reflects what the commodity might be worth in future 19.17 19.27 19.00 19.04 –.20 94,598 Oct 2.852 2.865 2.753 2.773 –.083 118,514 July 19.28 19.36 19.12 19.17 –.17 468,337 months. Nov 2.981 3.005 s 2.902 2.924 –.071 60,192 Oct Jan'17 3.360 3.375 s 3.285 3.311 –.042 100,857 Sugar-Domestic (ICE-US)-112,000 lbs.; cents per lb. Wednesday Wednesday Wednesday Sept 28.10 28.20 28.10 27.89 –.05 1,502 Coins,wholesale $1,000 face-a 14167 Wheat,Spring14%-pro Mnpls-u 6.1025 27.75 27.77 27.75 … 1,593 Agriculture Futures Nov 27.77 Energy Other metals Wheat,No.2 soft red,St.Louis-bp,u 4.5700 (ICE-US)-50,000 lbs.; cents per lb. Propane,tet,Mont Belvieu-g 0.5219 LBMA Platinum Price PM *974.0 Wheat - Hard - KC (USDA) $ per bu-u 4.0800 -5,000 bu.; cents per bu. Cotton Corn (CBT) July 62.83 63.45 62.53 62.94 .09 5,075 Butane,normal,Mont Belvieu-g 0.6674 Platinum,Engelhard industrial 982.0 Wheat,No.1soft white,Portld,OR-u n.a. 396.50 401.00 392.25 393.00 –3.25 211,739 July Dec 64.65 65.21 64.11 64.53 .14 153,672 NaturalGas,HenryHub-i 2.780 Platinum,Engelhard fabricated 1082.0 Sept 402.25 406.50 397.50 398.25 –4.00 544,444 NaturalGas,TranscoZone3-i 2.750 Orange Juice (ICE-US)-15,000 lbs.; cents per lb. Palladium,Engelhard industrial 561.0 Food -5,000 bu.; cents per bu. NaturalGas,TranscoZone6NY-i 2.010 Oats (CBT) July 165.05 165.15 162.75 164.20 –.90 4,843 Palladium,Engelhard fabricated 661.0 Beef,carcass equiv. index 205.25 209.75 201.00 … 2,121 NaturalGas,PanhandleEast-i 2.610 July 206.50 Sept 167.10 168.60 165.90 167.60 .20 9,746 Aluminum, LME, $ per metric ton *1623.5 choice 1-3,600-900 lbs.-u 193.31 Dec 216.25 217.25 212.50 216.75 .50 4,487 NaturalGas,Opal-i 2.610 Copper,Comex spot 2.1355 select 1-3,600-900 lbs.-u 172.77 NaturalGas,MarcellusNE PA-i 1.850 -5,000 bu.; cents per bu. Iron Ore, 62% Fe CFR China-s 51.7 Broilers,dressed 'A'-u 1.1175 Soybeans (CBT) Interest Rate Futures NaturalGas,HaynesvilleN.LA-i 2.720 1131.50 1147.00 1126.00 4.25 128,229 -$100,000; pts 32nds of 100% Shredded Scrap, US Midwest-s,w 251 Broilers, National comp wghtd-u,w 0.9756 July 1137.50 Treasury Bonds (CBT) Coal,C.Aplc.,12500Btu,1.2SO2-r,w 40.500 167-090 167-280 167-040 4.0 583,329 Steel, HRC USA, FOB Midwest Mill-s 620 Butter,AA Chicago 2.3600 Nov 1108.50 1123.50 1103.00 1116.75 6.00 418,586 Sept 167-230 Coal,PwdrRvrBsn,8800Btu,0.8SO2-r,w 8.800 Cheddar cheese,bbl,Chicago 154.00 Fibers and Textiles Cheddar cheese,blk,Chicago 151.25 Metals Burlap,10-oz,40-inch NY yd-n,w 0.4650 Milk,Nonfat dry,Chicago lb. 90 Gold, per troy oz Cotton,1 1/16 std lw-mdMphs-u 0.6358 Cocoa,Ivory Coast-w 3391 Macro & Market Economics: Energy Report Engelhard industrial 1269.80 Cotlook 'A' Index-t *75.05 Coffee,Brazilian,Comp 1.4063 Engelhard fabricated 1365.04 Hides,hvy native steers piece fob-u n.a. Coffee,Colombian, NY 1.5999 Handy & Harman base 1264.85 Wool,64s,staple,Terr del-u,w n.a. Eggs,large white,Chicago-u Prices, Then and Now Nymex-traded futures Handy & Harman fabricated 1403.98 0.4850 LBMA Gold Price AM *1265.00 Flour,hard winter KC 13.35 Grains and Feeds Hams,17-20 lbs,Mid-US fob-u n.a. LBMA Gold Price PM *1264.85 Barley,top-quality Mnpls-u n.a. Crude-oil futures, per barrel Natural gas, per million BTUs Hogs,Iowa-So. Minnesota-u Krugerrand,wholesale-e 1318.20 Bran,wheat middlings, KC-u 60 80.67 Maple Leaf-e 1330.88 Corn,No. 2 yellow,Cent IL-bp,u 3.7300 Pork bellies,12-14 lb MidUS-u n.a. American Eagle-e 1330.88 Corn gluten feed,Midwest-u,w 115.3 Pork loins,13-19 lb MidUS-u 1.1029 $100 $6 Mexican peso-e 1536.22 Corn gluten meal,Midwest-u,w 583.8 Steers,Tex.-Okla. Choice-u 116.00 Austria crown-e 1245.40 Cottonseed meal-u,w 288 Steers,feeder,Okla. City-u,w 148.41 75 4.5 Austria phil-e 1330.88 Hominy feed,Cent IL-u,w 95 Silver, troy oz. Meat-bonemeal,50% pro Mnpls-u,w 368 Fats and Oils Engelhard industrial 17.2700 Oats,No.2 milling,Mnpls-u 2.5900 Corn oil,crude wet/dry mill-u,w 40.8000 50 3 Engelhard fabricated 20.7240 Rice, 5% Broken White, Thailand-l,w 414.00 Grease,choice white,Chicago-u 0.2900 Handy & Harman base 17.3400 Rice, Long Grain Milled, No. 2 AR-u,w 22.13 Lard,Chicago-u n.a. 25 1.5 Handy & Harman fabricated 21.6750 Sorghum,(Milo) No.2 Gulf-u 7.2150 Soybean oil,crude;Centl IL-u 0.2993 LBMA spot price £11.7198 SoybeanMeal,Cent IL,rail,ton48%-u 395.50 Tallow,bleach;Chicago-u 0.3100 (U.S.$ equivalent) 17.2000 Soybeans,No.1 yllw IL-bp,u 11.1500 Tallow,edible,Chicago-u 0.3450 0 0 2014 2015 2016 2014 2015 2016 KEY TO CODES: A=ask; B=bid; BP=country elevator bids to producers; C=corrected; E=Manfra,Tordella & Brooks; G=ICE; I=Natural Gas Intelligence; L=livericeindex.com; M=midday; N=nominal; n.a.=not quoted or not available; R=SNL Energy; S=The Steel Index; T=Cotlook Limited; U=USDA; W=weekly, Z=not quoted. Crude-oil futures, per barrel Gasoline futures, per gallon Natural gas, per million BTUs *Data as of 6/21 Source: WSJ Market Data Group

$51.50 $1.65 $2.80

50.00 1.60 2.70

48.50 1.55 2.60

high 47.00 1.50 2.50 open close 45.50 1.45 2.40 low 44.00 1.40 2.30 13 20 13 20 13 20 The benefit Jun. Jun. Jun.

Pricing Overview Futures-market, spot and retail prices Price ($) YTD 52-Week Range ($) Last(l) 52-week of clarity Latest Last wk % chg Low High pct chg(%)

Crude oil, Nymex futures; per barrel 49.13 48.01 32.64 26.21 l 60.27 -18.48 RBOB gasoline, Nymex futures; per gallon 1.5882 1.5014 25.34 0.8989 l 2.0896 -22.73 Unleaded gasoline, retail; per gallon 2.455 2.499 14.67 1.834 l 2.920 -15.20 Natural gas, Nymex futures; per MMBtus 2.677 2.595 14.55 1.639 l 2.931 -2.97 NY Harbor ULSD, Nymex Futures; per gallon 1.5048 1.4778 36.71 0.8657 l 1.8866 -19.79 Diesel fuel, retail; per gallon 2.426 2.431 8.55 1.980 l 2.859 -15.15

Sources: SIX Financial Information via WSJ Market Data Group; U.S. Energy Information Admin.; DJ Newswires

OWNER IDENTIFIED Watching the Gauges: U.S. Supply and Demand Inventories, imports and demand for the week ended June 17. Current figures are in thousands of barrels or thousands of gallons per day, except natural-gas figures, which are in billions of cubic feet. Natural-gas import Natural-gas import and demand data are available monthly only. OWNER IDENTIFIED

Inventories, 000s barrels Imports, 000s barrels per day Expected Previous Year 4-week 5-year Expected Previous Year 4-week 5-year Current change week ago avg avg Current change week ago avg avg

Crude oil and petroleum prod 1,372,802 ... 1,368 1,247 1,368 1,134 10,721 ... 10,048 8,865 10,175 10,212 Crude oil OWNER IDENTIFIED excluding SPR 530,626 -1,600 532 463 533 395 8,439 ... 7,622 6,765 7,901 8,163 Gasoline 237,631 ... 237 218 238 214 876 ... 747 896 840 784 Finished gasoline 25,016 -500 24 26 24 43 107 ... 219 22 105 202 Reformulated 43 ... 0 0 0 0 0 ... 0 0 0 0 Conventional 24,973 ... 24 26 24 42 107 ... 219 22 105 67 Blend. components 212,615 ... 213 193 214 172 769 ... 528 874 735 585 Natural gas (bcf) 3,041 ... 3 2 3 3 ...... Kerosene-type jet fuel 41,388 ... 42 40 43 40 80 ... 162 109 145 113 Untangle complex corporate structures Distillates 152,314 100 152 135 151 128 146 ... 123 128 126 112 Heating oil 13,445 ... 13 19 12 20 6 ... 36 13 23 24 with Beneficial Ownership Solutions Diesel 138,868 ... 140 117 139 107 139 ... 88 116 103 87 Residual fuel oil 40,275 ... 41 40 40 38 214 ... 270 209 204 219 Other oils 269,897 ... 264 249 265 241 833 ... 1,044 675 852 878 It’s getting harder for banks to keep pace with varying Net crude, petroleum regulations and changing jurisdictional requirements. Our products, incl. SPR 2,067,906 ... 2,063 1,941 2,064 1,834 6,503 ... 5,830 4,553 5,957 7,023 expert researchers ensure you know the full picture so you can confidently evaluate risk in customer onboarding. Weekly Demand, 000s barrels per day Natural gas storage Expected Previous Year 4-week 5-year Billions of cubic feet; weekly totals go.dowjones.com/beneficial-ownership Current change week ago avg avg Natural gas, Total petroleum lower48states 4250 product 20,010 ... 20,840 20,682 20,246 19,678 t Finished 3250

motor gasoline 9,815 ... 9,762 9,655 9,715 9,301 t Kerosene-type Five-year average 2250 for each week jet fuel 1,677 ... 1,853 1,748 1,668 1,596 Distillates 3,902 ... 3,817 3,608 3,781 3,945 1250 Residual fuel oil 291 ... 134 266 306 441 Propane/propylene 1,011 ... 1,019 928 980 ... 250 Other oils 3,313 ... 4,257 4,477 3,796 ... J A S O N D J F M A M J 2015 2016 ©2016DowJones.AllRightsReserved.3AO1562 Note: Expected changes are provided by Dow Jones Newswires' survey of analysts. Previous and average inventory data are in millions. Sources: SIX Financial Information via WSJ Market Data Group; U.S. Energy Information Administration; Dow Jones Newswires For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com C8 | Thursday, June 23, 2016 THE WALL STREET JOURNAL. HEARD ON THE STREET Email: [email protected] FINANCIAL ANALYSIS & COMMENTARY WSJ.com/Heard

Valuing Tesla’s Partner: Pick a Number OVERHEARD

If Tesla Motors succeeds they had to shut their doors of tax breaks tied to solar. Currency, aside from de- in buying SolarCity, it will Eclipsed tomorrow and just operate The price they are willing to noting money, means “a con- own a company that relies Year-to-date share performance in runoff mode. pay has varied considerably. dition of flowing.” So it al- on assumptions about pric- The problem is that those Vivint, Sunrun and SolarCity ways has been. But one SolarCity Sunrun ing and customer behavior projections are fishy. Take each use a 6% discount rate congressman wanted to block that stretch to 2036. By that Vivint Solar something as basic as how to arrive at a value per watt a change to the $20 bill, set time Elon Musk could be liv- 0% long customers will lease for their installed base. Raise to replace Andrew Jackson. ing on Mars. rooftop panels or how often that and the value per watt “Why would you want to Yet the combined market –20 they have to replace expen- moves lower. change that? I am a conser- value of the electric-car sive inverters. Vivint, for ex- Last but not least are the vative; I like to keep what we maker and solar-panel seller –40 ample, assumes 30 years and considerable overheads that have,” he said. fell the day after the news, two replacements, at year 11 affect the cost per watt for He lost on Tuesday after a indicating skepticism. Per- –60 and 21. Contracts are only each installation. In the first House committee decided not haps just as telling, the for 20 years, but they as- quarter, for example, Solar- to include his amendment. share prices of the two com- –80 sume all customers will re- City’s cost rose to $3.18 from Abolitionist and suffrag- panies most similar to Solar- JMAMJF new at 90% of the original $2.89 a year earlier. They ette Harriet Tubman will City, Vivint Solar and Sun- rate. This all depends on the project a sharp drop for the grace the new $20 bill start- run, were trailing the Source: FactSet retail cost of electricity in remainder of this year as in- ing in 2020, the 100th anni-

market. The opposite usually THE WALL STREET JOURNAL. KRIS TRIPPLAAR/SIPA USA 2036 and assumes some su- stallations surge, but rapid versary of American women occurs when someone pays a perior renewable-energy so- growth would eat up scarce gaining the right to vote. premium for a competitor. span its market value surged els—made by others—that lution won’t be available. cash in the short run. Ironically, Wednesday was But then the market is of- 10-fold but it is down by 70% are supposed to generate And since most customers Tesla itself is a risky bet the anniversary of the first ten wrong and it has had an from its 2014 peak. Smaller steady income for decades. will either move or die in the for the mundane reasons of issue of “Continentals” in especially hard time figuring Vivint and Sunrun have been Growth is always uncertain, next 30 years, it assumes valuation and execution risk. 1775—a controversial move in out solar stocks. SolarCity’s even choppier. but the value of solar com- new owners or heirs will SolarCity depends on far many ways, not least because shares have risen or fallen But these wild swings panies’ installed bases take over existing contracts. more obscure assumptions. the bills dropped the portrait by at least 5% on 166 sepa- aren’t for companies with shouldn’t be. Companies pro- Even if all goes to plan, Adding that uncertainty to of King George III. rate trading days, or nearly pie-in-the-sky technology. vide detailed assumptions to solar companies are burning Tesla’s big challenges won’t Conservatives surely were one-fifth of the time, since They are in the business of underpin an exact value per cash today and rely on inves- help either company. aghast at that, too. going public. In a two-year installing rooftop solar pan- watt for their businesses if tors to pay them for streams —Spencer Jakab HP Must Keep Its Ink From Running Dry Funds Need to Guard Against Stampedes For a newish tech com- secutive quarters. That Fund managers aren’t too poured into fixed-income nue was forced to block in- pany, HP Inc. still makes Jammed naturally hurts demand for big to fail, but that doesn’t funds that buy relatively il- vestor withdrawals, most of its money the old HP's quarterly printer-supply the consumables portion of mean their actions can’t liquid assets while promising prompting a minipanic fashioned way—by effec- revenue, change from a year earlier the business, which has been have a big impact on the fi- nearly instant cash redemp- among investors in other tively printing it. in state a slow decline for nancial system. tions to investors. Many also high-yield bond funds. HP, which split from its 0% three years. And that decline Global rule setters decided juice their returns using bor- The FSB wants local regu- Hewlett Packard Enterprise has accelerated. Printing against treating asset man- rowed money or derivatives. lators to make sure that any sibling last year, relies on –6 supplies’ revenue fell 15% agers like super-large banks The rule-setting body now fund that plans to invest in printer hardware and sup- year over year for the six- or insurers last summer. has identified several risks assets that are less liquid al- plies for more than one-third –12 months ending April 30. However, the Financial Sta- to the wider financial system ways has more restrictions of its revenue and more than Given the importance of bility Board did plow on with that aren’t fully captured by on investor redemptions. –18 two-thirds of its pretax oper- printers and ink to HP’s busi- efforts to understand how current regulations or com- The board also wants to ating profit. Ink cartridges 2015 ’16 ness model, changes in inef- they can hurt wider markets mon practices and come up see more “stress testing” of and toner are the biggest Source: the company ficient inventory and promo- if they are forced to sell with proposals to fix these. funds overseen by local regu- part of those profits, which tion practices are welcome heavily due to the demands The most important—and lators to help monitor inter- is why HP’s share price and promotions. The aim is moves. But the company has of skittish investors in diffi- obvious—is to try to reduce connections between funds, slipped more than 5% Wed- to adopt more of an “every- a tough task ahead since cult markets. risks of big mismatches be- fund managers and markets. nesday after the company day low price” strategy that Wall Street is banking on an This is important because tween the ease with which Other proposals relate to disclosed problems in this will eliminate confusion improvement soon. Analysts asset managers have become investors believe they can funds’ exposure to borrowed segment. The company is among customers, the com- project a 14% decline in a larger part of the financial pull their money out of funds money and derivatives. looking to remedy them. pany said. printing revenue for the fis- system. The top 10 fund and the difficulty the man- Fund managers rightly es- In a conference call late Those efforts are new, but cal year ending this October. managers in the world now ager may have in selling the caped designation as too big Tuesday, HP disclosed a plan HP’s printing business has The decline is expected to manage more than $20 tril- underlying assets. to fail, but they should back to reduce inventory of print- been struggling for a while. moderate to just 2% in the lion of assets among them, U.S. markets got a big re- the main thrust of these pro- ing supplies and enact pric- Revenue from printing hard- next fiscal year. In that light, according to the board. minder of these risks last posals to help ensure safer ing strategies that would ware saw double-digit de- HP can ill afford more paper With investors everywhere December when a distressed- markets for all. eliminate frequent discounts clines for the past four con- jams. —Dan Gallagher chasing yield, billions have debt fund run by Third Ave- —Paul J. Davies

| WSJ.com/fundresearch Net YTD Net YTD Net YTD Net YTD Net YTD Net YTD Mutual Funds Fund NAV Chg % Ret Fund NAV Chg % Ret Fund NAV Chg % Ret Fund NAV Chg % Ret Fund NAV Chg % Ret Fund NAV Chg % Ret MFS Funds Instl EqIndex 56.36 -0.09 3.0 BalAdml 30.03 -0.02 3.8 VANGUARD FDS TgtRe2030 28.61 -0.01 3.2 GrwthInst 54.96 -0.12 1.0 Net YTD IntlEq 20.28 +0.03 -1.4 Growth 50.73 -0.16 -5.5 CAITAdml 12.08 ... 3.2 DivdGro 23.16 ... 4.5 TgtRe2035 17.34 -0.01 3.0 InPrSeIn 10.77 +0.03 4.9 Explanatory Notes Fund NAV Chg % Ret Data provided by Mutual Series HelSci 62.20 +0.07 -9.7 CapOpAdml r 114.03 -0.50 -3.9 GNMA 10.80 ... 2.5 TgtRe2040 29.26 -0.01 2.8 InstIdx 190.49 -0.31 3.1 OTC 77.31 -0.65 -7.3 Top 250 mutual-funds listings for Nasdaq-published share classes with GlbDiscA 28.96 +0.02 0.3 InstlCapG 27.25 -0.10 -5.7 EMAdmr 28.77 +0.15 6.1 HlthCare r 203.56 +0.74 -5.3 TgtRe2045 18.28 -0.01 2.8 InstPlus 190.50 -0.31 3.1 Puritn 20.36 -0.03 0.6 net assets of at least $500 million each. NAV is net asset value. GlbDiscz 29.49 +0.02 0.5 Intl G&I 13.11 +0.03 0.3 EqIncAdml 65.03 -0.12 6.5 IntlVal 31.57 +0.04 1.5 TgtRe2050 29.29 -0.01 2.8 InstTStPlus 46.91 -0.09 3.1 SrsInvGrdF 11.44 +0.02 5.0 Percentage performance figures are total returns, assuming reinvestment IntlStk 15.53 +0.05 1.6 ExtndAdml 64.67 -0.23 2.4 INSTTRF2020 19.88 ... 3.6 TgtRetInc 12.81 ... 3.7 MidCpInst 33.84 -0.05 3.7 of all distributions and after subtracting annual expenses. Figures don’t TotalBond 10.67 +0.02 5.5 NET CHG O MCapGro 74.57 -0.11 1.7 GNMAAdml 10.80 ... 2.6 INSTTRF2025 19.73 ... 3.5 TotIntBdIxInv 10.99 ... 4.7 MidCpIstPl 166.90 -0.23 3.7 reflect sales charges (“loads”) or redemption fees. is change in Fidelity Selects NAV from previous trading day. YTD%RET is year-to-date return. 3-YR Oakmark Funds Cl I MCapVal 27.56 ... 10.5 GrwthAdml 54.96 -0.12 1.0 INSTTRF2030 19.56 ... 3.3 WellsI 25.71 ... 6.3 SmCapInst 55.17 -0.16 4.6 %RET is trailing three-year return annualized. Biotech r 168.48 +0.44-26.2 N Horiz 42.17 -0.07 -0.7 HlthCareAdml r 85.88 +0.31 -5.3 INSTTRF2035 19.40 ... 3.1 Welltn 37.86 -0.02 4.2 STIGradeInst 10.74 +0.01 2.8 Health r 188.99 -0.07 -8.8 EqtyInc 28.95 -0.02 1.3 e-Ex-distribution. f-Previous day’s quotation. g-Footnotes x and s apply. Oakmark 63.82 -0.17 1.5 N Inc 9.64 +0.01 4.2 HYCorAdml r 5.70 +0.01 5.7 LifeCon 18.36 ... 3.9 WndsrII 34.09 -0.07 2.9 TotBdInst 10.99 +0.01 4.5 j k First Eagle Funds -Footnotes e and s apply. -Recalculated by Lipper, using updated data. OakmrkInt 20.54 +0.10 -3.8 OverS SF r 9.01 +0.02 0.2 InfProAd 26.44 +0.07 4.9 LifeGro 27.81 ... 3.1 VANGUARD INDEX FDS TotBdInst2 10.95 +0.01 4.5 p-Distribution costs apply, 12b-1. r-Redemption charge may apply. s-Stock GlbA 54.58 -0.01 6.3 IntlGrAdml 66.85 +0.13 -0.3 TotBdInstPl 10.99 +0.01 4.5 t v Old Westbury Fds R2015 14.22 +0.01 3.9 LifeMod 23.63 ... 3.5 500 192.37 -0.32 3.1 split or dividend. -Footnotes p and r apply. -Footnotes x and e apply. FPA Funds ITBondAdml 11.75 +0.02 5.6 TotIntBdIdxInst 32.99 +0.02 4.7 x-Ex-dividend. z-Footnote x, e and s apply. NA-Not available due to LrgCpStr 12.66 +0.02 1.5 R2020 20.37 +0.01 3.5 Primcp r 97.54 -0.54 -2.2 ExtndIstPl 159.59 -0.56 2.4 FPACres 31.29 ... 0.7 TotIntlInstIdx r 97.22 +0.15 1.9 incomplete price, performance or cost data. NE-Not released by Lipper; Oppenheimer Y R2025 15.41 +0.01 3.1 ITIGradeAdml 10.00 +0.01 5.2 PrmcpCor 20.79 -0.06 -0.1 TotBd2 10.95 +0.01 4.5 NN NS FrankTemp/Franklin A LTGradeAdml 10.71 +0.02 10.7 TotItlInstPlId r 97.24 +0.16 1.9 data under review. -Fund not tracked. -Fund didn’t exist at start of DevMktY 30.79 +0.11 2.7 R2030 22.39 ... 2.7 SelValu r 26.63 -0.01 3.0 TotIntl 14.54 +0.03 1.9 period. CA TF A p 7.77 ... 5.2 R2035 16.14 ... 2.2 MidCpAdml 153.19 -0.21 3.6 STAR 23.65 -0.01 2.3 TotSt 51.83 -0.11 3.0 TotStInst 51.86 -0.10 3.0 Fed TF A p 12.56 ... 3.4 IntGrowY 36.06 +0.12 0.5 Wednesday, June 22, 2016 R2040 23.00 -0.01 1.9 MuHYAdml 11.68 ... 5.0 STIGrade 10.74 +0.01 2.7 VANGUARD INSTL FDS Growth A p 74.39 -0.06 1.4 P SmCapStk 40.00 -0.10 3.6 MuIntAdml 14.52 ... 3.2 TgtRe2015 14.73 ... 3.5 BalInst 30.03 -0.03 3.8 W Net YTD Net YTD IncomeA p 2.18 ... 6.8 Value 31.89 -0.05 2.0 MuLTAdml 12.07 -0.01 4.5 TgtRe2020 28.11 ... 3.5 DevMktsIndInst 11.64 +0.01 0.2 Western Asset Fund NAV Chg % Ret Fund NAV Chg % Ret Parnassus Fds RisDv A p 51.63 -0.06 8.5 MuLtdAdml 11.07 ... 1.2 TgtRe2025 16.15 ... 3.4 ExtndInst 64.67 -0.23 2.4 CorePlusBdI 11.74 +0.01 4.4 A US CoreEq1 17.65 -0.03 3.3 FrankTemp/Franklin C ParnEqFd 38.11 -0.10 3.4 S MuShtAdml 15.83 ... 0.6 US CoreEq2 16.83 -0.03 3.4 Income C t 2.21 +0.01 7.0 PIMCO Fds Instl Schwab Funds PrmcpAdml r 101.08 -0.55 -2.1 American Century Inv US Small 29.29 -0.11 3.5 FrankTemp/Temp A AllAsset NA ... NA REITAdml r 120.68 -0.25 9.0 S&P Sel 32.53 -0.05 3.1 Ultra 34.39 -0.08 -1.8 US SmCpVal 31.60 -0.14 3.9 GlBond A p 11.19 ... -2.0 ShortT NA ... NA SmCapAdml 55.17 -0.16 4.6 Borrowing Benchmarks | WSJ.com/bonds American Funds Cl A US TgdVal 20.68 -0.08 5.0 Growth A p 21.99 +0.10 0.4 TotRt 10.22 +0.01 2.9 T STBondAdml 10.58 ... 2.1 AmcpA p 26.20 -0.03 3.0 USLgVa 31.80 -0.09 3.8 FrankTemp/Temp Adv PIMCO Funds D STIGradeAdml 10.74 +0.01 2.7 AMutlA p 35.90 -0.04 7.2 Dodge & Cox GlBondAdv p 11.15 ... -1.8 IncomeFd NA ... NA TCW Funds TotBdAdml 10.99 +0.01 4.5 Money Rates June 22, 2016 BalA p 24.48 -0.01 4.2 Balanced 95.12 -0.17 2.8 PIMCO Funds Instl TotRetBondI 10.36 +0.01 3.2 TotIntBdIdxAdm 21.98 +0.01 4.7 BondA p 13.01 +0.02 4.1 Income 13.74 +0.02 4.4 H IncomeFd NA ... NA TIAA/CREF Funds TotIntlAdmIdx r 24.31 +0.04 1.8 EqIdxInst 15.52 -0.03 3.0 Key annual interest rates paid to borrow or lend money in U.S. and CapIBA p 58.48 +0.10 6.6 Intl Stk 36.16 +0.03 -0.9 Harbor Funds PIMCO Funds P TotStAdml 51.85 -0.10 3.0 Tweedy Browne Fds international markets. Rates below are a guide to general levels but CapWGrA 43.91 +0.08 2.6 Stock 161.32 -0.48 1.6 CapApInst 56.97 -0.24 -6.3 IncomeP NA ... NA TxMIn r 11.63 +0.01 0.2 GblValue 24.55 +0.09 0.4 EupacA p 45.14 +0.20 -0.5 DoubleLine Funds IntlInst r 60.45 +0.14 1.7 Price Funds ValAdml 32.87 -0.05 4.6 don’t always represent actual transactions. FdInvA p 51.82 -0.04 3.6 TotRetBdI 10.90 ... 2.6 BlChip 68.57 -0.12 -5.3 V WdsrllAdml 60.49 -0.13 3.0 GwthA p 41.52 -0.07 0.6 TotRetBdN 10.90 +0.01 2.5 I CapApp 26.33 ... 5.1 WellsIAdml 62.29 ... 6.3 Inflation Other short-term rates HI TrA p 9.85 +0.02 8.5 EmMktS 30.92 +0.10 8.5 VANGUARD ADMIRAL WelltnAdml 65.38 -0.03 4.3 May index Chg From (%) Week 52-Week ICAA p 35.27 -0.04 6.6 F Invesco Funds A EqInc 30.30 -0.05 6.8 500Adml 192.36 -0.32 3.1 WndsrAdml 64.46 -0.06 0.7 EqIncA 9.73 ... 2.0 level April '16 May '15 Latest ago high low IncoA p 21.04 +0.02 5.7 Federated Instl N PerA p 35.67 +0.06 -1.0 StraValDivIS 6.26 +0.01 12.2 J U.S. consumer price index Call money 2.25 2.25 2.00 NEcoA p 34.68 ... -3.6 Fidelity All items 240.236 0.41 1.0 2.25 NwWrldA 51.18 +0.16 2.4 John Hancock Class 1 | WSJ.com/ETFresearch 500IdxInst 73.67 -0.12 3.1 Exchange-Traded Portfolios Core 247.554 0.23 2.2 Commercial paper SmCpA p 43.89 ... 0.6 500IdxInstPrem 73.67 -0.12 3.1 LSBalncd 14.54 +0.01 2.5 n.q...... TxExA p 13.37 ... 3.6 500IdxPrem 73.66 -0.12 3.1 LSGwth 15.04 ... 1.4 Largest 100 exchange-traded funds, latest session Closing Chg YTD 30 to 270 days John Hancock Instl ETF Symbol Price (%) (%) International rates WshA p 39.80 -0.05 4.5 ExtMktIdxPrem r 50.90 -0.17 2.3 Wednesday, June 22, 2016 Commercial paper (AA financial) AMG Managers Funds DispValMCI 19.82 -0.01 3.5 39.68 0.03 2.1 IntlIdxPrem r 35.62 +0.08 -0.7 iSharesUSPreferred PFF Week 52-Week 0.57 0.53 0.68 0.12 JPMorgan Inst Class Closing Chg YTD 16.42 0.24 24.5 90 days YacktmanFd 22.22 -0.01 6.5 TMktIdxPrem 60.11 -0.12 3.0 ETF Symbol Price (%) (%) iShrSilverTr SLV Latest ago High Low AQR Funds MdCpVal 35.96 -0.05 5.9 iSh1-3YTreasuryBd SHY 85.06 0.04 0.8 Euro commercial paper USBdIdxPrem 11.86 +0.02 4.4 AlerianMLPETF AMLP 12.73 –0.08 5.6 MgdFutStrI 10.01 -0.01 -1.7 JPMorgan R Class iSh7-10YTreasuryBd IEF 111.21 0.20 5.3 Fidelity Advisor I CnsmrDiscSelSector XLY 78.34 –0.14 0.2 Prime rates 30 day n.q. n.q. -0.02 -0.14 Artisan Funds CoreBond 11.92 +0.01 4.2 iSh20+YTreasuryBd TLT 133.76 0.16 10.9 NwInsghtI 26.60 -0.11 0.9 CnsStapleSelSector XLP 53.81 0.06 6.6 U.S. 3.50 3.50 3.50 3.25 Two month n.q. n.q. -0.01 -0.09 Intl Inv 27.96 +0.12 -2.5 JPMorgan Select Cls iShRussellMCGrowth IWP 93.37 –0.12 1.6 Fidelity Freedom DBGoldDoubleLgETN DGP 26.58 0.26 46.5 Canada 2.70 2.70 2.85 2.70 Three month n.q. n.q. -0.01 -0.08 CoreBond 11.91 +0.01 4.2 PwrShrs QQQ QQQ 107.24 –0.24 –4.1 FF2020 14.65 ... 2.7 DBGoldDoubleShrt DZZ 5.80 –0.17–34.6 Japan 1.475 1.475 1.475 1.475 Four month n.q. n.q. 0.00 0.00 B ShtDurBnd 10.90 ... 1.2 PS SP500LoVoltlPrt SPLV 41.37 –0.10 7.3 FF2025 12.48 -0.01 2.3 DeutscheXMSCIEAFE DBEF 24.97 –0.40 –8.1 Five month n.q. n.q. 0.01 0.01 USLgCpCorPls 26.52 -0.06 -1.1 SPDRBarclaysHiYdBd JNK 35.37 –0.08 4.3 Baird Funds FF2030 15.16 -0.01 2.0 EnSelectSectorSPDR XLE 67.89 –0.56 12.5 Policy Rates Six month n.q. n.q. 0.02 0.02 SchwIntlEqty SCHF 27.72 –0.04 0.6 AggBdInst 11.01 +0.01 4.8 FreedomK2020 13.62 ... 2.7 FinSelSectorSPDR XLF 22.85 –0.09 –4.1 Euro zone 0.00 0.00 0.05 0.00 L SchwUS BrdMkt SCHB 50.01 –0.20 2.0 CorBdInst 11.29 +0.01 5.2 FreedomK2025 14.16 -0.01 2.4 GuggenheimSP500EqW RSP 80.32 –0.10 4.8 Switzerland 0.50 0.50 0.50 0.50 Libor SchwUS LrgCap SCHX 49.50 –0.14 1.9 BlackRock Funds A FreedomK2030 14.28 -0.02 2.0 Lazard Instl HealthCareSelSect XLV 70.46 0.29 –2.2 Britain 0.50 0.50 0.50 0.50 One month 0.45205 0.44230 0.46955 0.18500 EmgMktEq 15.00 +0.02 11.6 SPDR DJIA Tr DIA 177.57 –0.28 2.1 GlblAlloc p 17.85 -0.01 0.1 FreedomK2035 14.64 -0.02 1.6 IndSelSectorSPDR XLI 56.04 –0.28 5.7 Australia 1.75 1.75 2.00 1.75 Three month 0.64010 0.65480 0.68580 0.28075 SPDR GldTr GLD 120.90 0.05 19.2 BlackRock Funds C FreedomK2040 14.67 -0.02 1.6 Loomis Sayles Fds iShIntermCredBd CIU 110.44 0.07 2.9 Six month 0.92965 0.93390 0.99310 0.44285 SPDR S&PMdCpTr MDY271.08 –0.33 6.7 GlblAlloc t 16.21 -0.01 -0.3 Fidelity Invest LSBondI 13.61 +0.02 6.4 iSh1-3YCreditBond CSJ 105.76 0.03 1.1 Overnight repurchase One year 1.25100 1.25325 1.33740 0.75035 SPDR S&P 500 SPY 208.10 –0.16 2.1 BlackRock Funds Inst Balanc 21.53 -0.02 1.9 Lord Abbett A iSharesTIPSBondETF TIP 115.02 0.27 4.9 0.59 0.54 0.59 0.09 SDY 82.41 –0.16 12.0 U.S. EqtyDivd 21.65 -0.03 3.6 BalancedK 21.53 -0.03 1.9 ShtDurIncmA p 4.35 +0.01 2.9 iSh3-7YTreasuryBd IEI 126.33 0.12 3.0 SPDR S&P Div Euro Libor 43.38 –0.34 1.3 GlblAlloc 17.97 -0.01 0.2 BluCh 65.38 -0.31 -5.2 Lord Abbett F iShCoreHiDividend HDV 80.51 –0.28 9.7 TechSelectSector XLK One month -0.359 -0.359 -0.073 -0.359 UtilitiesSelSector XLU 50.19 –0.48 16.0 U.S. government rates HiYldBd 7.36 +0.02 6.1 Contra 96.89 -0.33 -1.3 ShtDurIncm 4.34 ... 2.7 iShCoreMSCIEAFEETF IEFA 53.18 –0.11 –2.2 Three month -0.285 -0.283 -0.009 -0.285 VanEckVectBiotech BBH 101.61 0.89–20.0 StratIncOpptyIns 9.69 ... 0.4 ContraK 96.86 -0.33 -1.3 iShCoreMSCIEmgMk IEMG 41.22 0.12 4.6 Discount Six month -0.167 -0.166 0.059 -0.167 VanEckGoldMiner GDX 25.50 2.29 85.9 CpInc r 9.26 +0.01 3.2 M iShCoreS&P500ETF IVV 209.27 –0.17 2.1 1.00 1.00 1.00 0.75 One year -0.036 -0.033 0.169 -0.036 VanEckVctrOilSvcs OIH 29.60 –0.30 11.9 D DivIntl 34.42 +0.12 -1.8 Metropolitan West iShCoreS&PMdCp IJH 148.67 –0.25 6.7 VanEckVectorsPharm PPH 57.49 0.33–12.0 Dimensional Fds DivIntlK r 34.37 +0.12 -1.8 TotRetBd 10.91 ... 3.5 iShCoreS&PSmCpETF IJR 115.63 –0.45 5.0 Federal funds Euro interbank offered rate (Euribor) 111.47 0.06 3.2 VanEckVctrRetail RTH 76.20 0.13 –2.0 5GlbFxdInc 11.18 +0.01 3.0 GroCo 129.93 -0.52 -4.8 TotRetBdI 10.91 +0.01 3.6 iShCoreUSAggBd AGG Effective rate 0.4100 0.4100 0.4100 0.0600 One month -0.358 -0.353 -0.064 -0.358 83.51 –0.29 11.1 VanEckSemiconduc SMH 57.12 –0.12 7.2 EmgMktVa 22.19 +0.12 9.0 GrowCoK 129.85 -0.52 -4.8 TRBdPlan 10.27 ... 3.7 iShSelectDividend DVY High 0.5625 0.5625 0.5900 0.3100 Three month -0.268 -0.262 -0.014 -0.268 66.51 0.02 2.5 VangdInfoTch VGT 107.77 –0.44 –0.5 EmMktCorEq 16.97 +0.08 8.0 InvGrBd 11.44 +0.02 5.0 MFS Funds Class A iShEdgeMSCIMinEAFE EFAV 0.3500 0.3300 0.3700 0.0200 Six month -0.161 -0.159 0.050 -0.161 44.92 –0.02 7.4 VangdSmCapValue VBR 105.21 –0.21 6.5 Low IntlCoreEq 11.51 ... 1.5 LowP r 48.63 -0.02 1.8 ValueA p 34.69 -0.01 6.2 iShEdgeMSCIMinUSA USMV 0.3800 0.3800 0.5500 0.0400 -0.029 -0.021 0.171 -0.029 12.20 –0.08 19.3 VangdHlthCr VHT 128.25 0.28 –3.5 Bid One year IntSmCo 17.63 -0.01 2.9 LowPriStkK r 48.61 -0.02 1.9 MFS Funds Class I iSharesGold IAU 0.5000 0.3900 0.5600 0.0800 120.72 0.18 5.9 VangdDivApp VIG 82.13 –0.17 5.6 Offer IntSmVa 18.82 -0.01 1.2 MagIn 87.31 -0.25 -1.5 ValueI 34.89 -0.01 6.3 iShiBoxx$InvGrCpBd LQD Value 52-Week VEA 36.17 –0.17 –1.5 iShiBoxx$HYCpBd HYG 84.02 0.10 4.3 VanguardFTSEDevMk Treasury bill auction Latest Traded High Low 113.00 0.44 6.8 VanguardFTSEEmgMk VWO 34.63 0.14 5.9 iSharesJPMUSDEmgBd EMB 0.250 0.240 0.295 0.000 MBB 109.51 0.04 1.7 VanguardFTSEEurope VGK 48.62 0.04 –2.5 4 weeks DTCC GCF Repo Index iShMBSETF 0.270 0.270 0.350 0.000 IPO Scorecard iShMSCIACWIETF ACWI 56.35 –0.10 0.9 VangdAllWldxUS VEU 43.50 –0.02 0.2 13 weeks Treasury 0.548 76.750 0.639 0.075 0.400 0.400 0.585 0.065 Performance of IPOs, most-recent listed first iSharesMSCIEAFESC SCZ 50.08 –0.50 0.3 VangdGrowth VUG 106.79 –0.21 0.4 26 weeks MBS 0.534 89.100 0.705 0.087 57.12 –0.05 –2.7 VangdHiDivYld VYM 70.50 –0.17 5.6 % Chg From % Chg From iSharesMSCIEAFEETF EFA Open Implied 33.94 5.4 BIV 86.87 0.14 4.6 Company SYMBOL Wed3s Offer 1st-day Company SYMBOL Wed3s Offer 1st-day iShMSCIEmgMarkets EEM 0.27 VngdInter-Term Secondary market Settle Change Interest Rate IPO date/Offer price close ($) price close IPO date/Offer price close ($) price close iShMSCIEurozoneETF EZU 33.74 –0.12 –3.7 VangIntrCorpBd VCIT 88.26 0.18 5.0 11.57 –0.86 –4.5 VangdLgCap VV 95.26 –0.18 1.9 Fannie Mae DTCC GCF Repo Index Futures Selecta Biosciences 14.00 ...... Sensus Healthcare 6.29 14.3 –2.5 iShMSCIJapanETF EWJ 256.56 0.69–24.2 VO 123.71 –0.13 3.0 30-year mortgage yields 99.510 -0.010 2742 0.490 SELB June 22/$14.00 SRTSU June 3/$5.50 iShNasdaqBiotech IBB VangdMdCap Treasury Jun iShNatlAMTFrMuniBd MUB113.17 –0.04 2.2 VangdReit VNQ 85.19 –0.15 6.8 30 days 3.080 3.028 3.750 2.979 Treasury Jly 99.510 -0.010 1900 0.490 Paragon Commercial 35.00 2.9 1.2 Clearside Biomedical 7.10 1.4 –2.1 iShRussell1000Gwth IWF 99.90 –0.18 0.4 VanguardS&P500 VOO 190.92 –0.17 2.1 60 days 3.116 3.078 3.788 2.998 Treasury Aug 99.495 unch. 1264 0.505 PBNC CLSD June 16/$34.00 June 2/$7.00 iShRussell1000ETF IWB 116.22 –0.14 2.6 VangdShrtTrm BSV 80.71 –0.01 1.4 Viveve Med 4.47 –10.6 –8.8 NantHealth 14.09 0.6 –24.2 iShRussell1000Val IWD 102.47 –0.20 4.7 VangShrtCorpBd VCSH 80.37 0.02 1.7 Notes on data: VIVE June 15/$5.00 NH June 2/$14.00 iShRussell2000Gwth IWO 136.59 –0.34 –1.9 VangdSmCap VB 115.14 –0.31 4.1 83.38 0.04 3.2 U.S. prime rate is effective December 17, 2015. Discount rate is effective December 17, 2015. U.S. Atkore Intl 16.40 2.5 2.5 Cotiviti Hldgs 19.05 0.3 11.3 iShRussell2000ETF IWM114.63 –0.39 1.8 VangdTtlBndMkt BND 45.22 –0.02 0.2 prime rate is the base rate on corporate loans posted by at least 70% of the 10 largest U.S. banks; ATKR June 10/$16.00 COTV May 26/$19.00 iShRussell2000Val IWN 97.07 –0.50 5.6 VanguardTtlIntlStk VXUS 106.51 –0.22 2.1 Other prime rates aren’t directly comparable; lending practices vary widely by location; DTCC GCF iShRussell3000ETF IWV 123.20 –0.23 2.4 VangdTtlStock VTI Repo Index is Depository Trust & Clearing Corp.'s weighted average for overnight trades in applicable China Online Edu 23.12 21.7 21.8 GMS 22.17 5.6 1.2 iShRussellMid-Cap IWR 167.61 –0.14 4.6 VangdTotlWrld VT 58.32 –0.17 1.2 CUSIPs. Value traded is in billions of U.S. dollars. Futures on the DTCC GCF Repo Index are traded on COE June 10/$19.00 GMS May 26/$21.00 iShRussellMCValue IWS 73.93 –0.18 7.7 VanguardValueETF VTV 84.29 –0.12 3.4 NYSE Liffe US. iShS&P500Growth IVW 115.86 –0.20 0.1 WisdomTreeEurope HEDJ 51.47 –0.29 –4.3 Sources: Federal Reserve; Bureau of Labor Statistics; DTCC; SIX Financial Information; Sources: WSJ Market Data Group; FactSet Research Systems iShS&P500ValueETF IVE 92.21 –0.16 4.2 WisdomTreeJapanHdg DXJ 40.28 –1.32–19.6 General Electric Capital Corp.; Tullett Prebon Information, Ltd. For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com STYLE & TRAVEL

Who Wants to He Flies With Bats Golf in Rio? From Louisville to MLB parks WHAT’SINYOURBAG?|D2 SPORTS | D6

Wireless headphones to muffle noise in planes, trains and open-plan offices are almost a necessity yet far from equal Shortcut at The Airport

BY SCOTT MCCARTNEY

Would you pay $10 to $15 a month for a guaranteed cut to the front of some crowded airport security lines, even ahead of Pre- Samsung Level On Sony h.ear on Bose Sennheiser Check members and first-class Wireless Pro Wireless NC QuietComfort 35 Momentum Wireless passengers? Clear is a private trusted-trav- eler program sanctioned by the Transportation THE MIDDLE Security Adminis- SEAT tration. It has lanes at only 13 airports—San Francisco, Denver and Orlando, Fla., among them. Once enrolled, members go to Clear’s faster lane instead of TSA and have their identity verified by fingerprint or iris scan. Then they go straight to the X-ray machine. The speedy service is finding new life because airport security screening lines have disrupted so many passengers this year. Enrollment this year through June tripled, compared with the same period a year earlier, and now 500,000 people are enrolled. Delta Air Lines bought 5% of the JBL Everest Parrot Zik 3 Beats Studio Bang & Olufsen company in April. It will be giving Elite 700 Wireless Beoplay H8 Clear memberships to its top-level frequent fliers and helping Clear

EMILY PRAPUOLENIS/THE WALL STREET JOURNAL open up at more airports, including Delta hubs, by the end of this BY GEOFFREY A. FOWLER Bye-Bye Noise, Hello Sound nap mode. Still, they’re not the year. only ones worth considering. Airports like Seattle-Tacoma In- Sometimes you need the world The more decibels (dB) of outside noise that get canceled by these headphones, A few technological leaps have ternational, which has had big to just shut up, already. the more you can enjoy your music—especially on a loud airplane, where these improved the current generation problems with long lines, have in- The roar of a jet, the clamor of tests took place. of noise-canceling headphones. vited in Clear, with service to start a commuter rail and the murmur BRAND STREET PRICE AVG. dB CANCELED They no longer require throwaway in July. Sea-Tac had been talking of an open office all conspire to AA batteries: Now you charge with Clear for several years, and Bose QuietComfort 35 $350 20.5 keep you from concentrating. Or them like a phone, and they can decided to bring it in before wait napping. Your options: Sony h.ear on Wireless NC $350 17.1 run for up to 20 hours at a time. times escalated, airport spokes- 1) Move to the woods, leaving (Many are smart enough to shut man Perry Cooper says. planes, trains and co-workers be- Parrot Zik 3 $400 13.1 themselves off if you forget.) They Clear says it is making it easier hind. can take calls, though the noise- for airports to make room for its 2) Go deaf by cranking your Bang & Olufsen Beoplay H8 $450 12.0 canceling tech won’t necessarily operation at crowded checkpoints headphone vol- make your own voice clearer. by shrinking the space it needs, ume to 11. Sennheiser Momentum Wireless $400 11.9 Many come with apps to custom- moving from large kiosks to porta- 3) Use technol- ize the experience. ble computer tablets for its ID ver- ogy to outsmart Samsung Level On Wireless Pro $180 8.8 All the headphones I tested use ification. By the end of the year, the cacophony. Bluetooth to connect wirelessly to Clear will be in 24 airports, chief JBL Everest Elite 700 $300 8.0 Guess which I your phone. Bluetooth used to executive Caryn Seidman-Becker PERSONAL recommend? Beats Studio Wireless $250 8.0 sound terrible, but the technology says. TECHNOLOGY Noise-canceling has improved. You can find “When you don’t have to take headphones, long Note: Tests conducted during two commercial 737 ﬂights THE WALL STREET JOURNAL. cheaper, tethered headphones, like anything out of your wallet, it’s the refuge of pi- the $300 Bose QC25 or $100 Au- transformative. It’s step one to a lots and road warriors, have be- dio-Technica ATH-ANC7B, but it’s faster, better experience,” she come so convenient they’re worth liberating to listen to music with- says. a look for ordinary commuters and market for pricey noise-canceling pair could cancel, I stuck a tiny out treating your ears like dogs on Verifying identity at TSA check- cubicle-dwellers, too. Normal headphones. But now it has seri- microphone in my ear. As I pulled a leash. points is just the beginning of headphones just cover your ears ous competition, including several the eight headsets from my Mary Suddenly a lot more people what Clear and other biometric and try to out-blast everything rivals that are, believe it or not, Poppins bag, one by one, the wary have reason to pay attention to technology companies hope to do else. Noise-canceling ones use mi- even more expensive. To keep up, passenger next to me asked if I wireless headphones: The new at airports. Just as ATMs short- crophones and software smarts to Bose just released its first totally was a magician. iPhone Apple is expected to re- ened bank waits and toll tags sped actively delete sound before it wireless pair, the $350 QuietCom- What I learned from flying lease later this year won’t have a up driving, identifying people by reaches your ears. The result: fort 35. economy class with all these head- headphone jack. The headphones I their fingerprints, eyes or photo- peace and quiet—or clear audio— Which are best? I took eight phones: Not all noise-canceling is tested do also let you plug in a graphs may shorten airport lines amid the barrage. pairs of wireless noise-canceling equal. I plan to buy the jet-neutral- physical cable—a must if you’re and speed up what has become a Bose has been in this business headphones on a flight from San izing Bose headphones. They tapping into the plane’s entertain- lengthy process. for decades, has 50 noise-cancel- Francisco to Las Vegas and back. sound good and the comfy earpads ment system. Clear and Alaska Airlines are ing patents and dominates the To measure how much noise each don’t bother me even when I’m in Please see HEADPHONES page D3 Please see CLEAR page D3 A Business Trip Works When the Family Tags Along

BY CHERYL LU-LIEN TAN don’t have the time to be with them all the time, I wouldn’t bring When a business trip is to a my family.” He likes taking his fantastic destination, it can be family to London because his wife tempting to bring your family speaks English and knows the city. along. But being at your profes- Mr. Polito likes to choose cul- sional, productive best and keep- turally exciting cities. This year, he ing your children entertained are took his wife and son on a busi- goals that can clash. ness trip to Venice that happened Guido Polito, to be before the annual Carnival. TRICKS OF CEO of the Milan- “The city was filled with people in THE TRADE based Baglioni costumes from the 19th century Hotels, which has and my son went crazy,” he says. high-end hotels in “He dressed up like a little prince Italy, France and the Maldives, and there were people stopping says the combination can work him in the square to take pic- well with the proper planning. He tures.” travels almost every week for Mr. Polito doesn’t mix family work, and he often brings along and business too closely. Don’t his wife and sometimes their 6- bring your family if you’re “going year-old son. “I travel so much it’s to spend the whole time on the quite nice when I can combine phone talking about business while these two things,” he says. For ex- you’re with them,” he says. “Make ample, this summer he took a trip sure you can really split business to New York City with his wife, and leisure into different times.” son, parents and mother-in-law. Often, he adds a few extra days It is better to bring your family to the beginning or end of the trip, if your business is in a city where or he tries to squeeze his meetings your partner has been or can get into the morning or afternoon. “I around easily. “I tend not to bring want to be focused on what I am

my family to places that are too doing so I can enjoy the moments” BENJAMIN HOSTE FOR THE WALL STREET JOURNAL unfamiliar or have possible chal- with his family, he says. lenges such as language barriers,” It is important to plan things Family Time he says. “If I have to go to Shang- out ahead of time “to optimize the Guido Polito, CEO of the Milan-based Baglioni Hotels, says a business trip with family can work if you carefully plan ahead. hai or Moscow for business and I Please see TRIP page D2 This summer he took a trip to New York with his wife, Maddalena, and 6-year-old son, Roberto. For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com D2 | Thursday, June 23, 2016 THE WALL STREET JOURNAL. STYLE & TRAVEL Here’s the Pitch: He Has the Perfect Bat for Each Player

BY HILARY POTKEWITZ As head of pro sales for Louisville Slugger, James Sass, below, hits the Walking into a Major League road weekly to visit teams in the Baseball clubhouse, James Sass major and minor leagues. He usually knows what every player wants carries, clockwise from top: sample from him before anyone utters a wooden bats of various models and word. finishes, batting gloves, a Louisville “They’re all looking for the Slugger shirt, a bucket hat for sun same thing,” he says. “The biggest protection during baseball games, barrel they can get with the light- camera and telephoto lens for taking est swing weight.” action shots, order pad and M&Ms. Mr. Sass, 50, is head of professional baseball sales for Louisville those bats as possible. Slugger. He’s on the It used to be an easier sell. For WHAT’S IN road at least once a years the Louisville Slugger was YOUR BAG? week visiting club- the standard-bearer of American houses in the major baseball. It was the bat of Babe and minor leagues, Ruth, Lou Gehrig and Mickey Man- checking in with players who use tle. Derek Jeter used Louisville his bats and hoping to convert Slugger model P72 for his entire others. During spring training, he’s career; Ken Griffey Jr. used model away from his Kentucky home for C271. a month. In the early 1990s, there were He carries anywhere from five only a handful of companies ap- to 20 bats of different models. proved to make bats for Major “The key is to get samples into League Baseball, and 60% of MLB their hands, for players to be able players swung Sluggers, according to check out different knobs and to the company. handles and barrels until they find The number of specialty bat one that fits them,” Mr. Sass says. suppliers has since ballooned to Sometimes he carries batting more than 30, and Slugger lost gloves. market share. The company now The company’s Louisville fac- estimates that about 35% of Major tory is only about 100 miles from Leaguers use its bats. (It still the Great American Ball Park, the claims about 70% of the minor- home field of the Cincinnati Reds. league market.) Mr. Sass often makes the drive on Mr. Sass wears Louisville Slug- game days to check in with local ger shirts when he travels. He says customers, like Reds All-Star first players have become accustomed baseman Joey Votto, or meet with to salesmen in the clubhouse, and players on the visiting team. he wants the brand to stand out. His company travel bag can Every morning he studies the hold two dozen bats. When he previous days’ batting stats for 125 flies, it always goes in checked minor leaguers. It can take a full luggage, even if he’s carrying a year of working with a new pros- custom delivery for a star player pect customizing his bat until a like Evan Longoria of the Tampa player feels comfortable enough to Bay Rays or Daniel Murphy of the switch brands, he says. “You real- Washington Nationals. “You can’t ize the importance of what you’re take bats on planes,” he says. doing for their career, and there’s MLB regulations dictate that a seriousness that comes with bats must be one piece of solid that,” he says. wood, no more than 42 inches The company’s wooden bats are long, with a maximum diameter of made of ash, birch or maple, 2.61 inches. mostly harvested from forests in That leaves plenty of room for upstate New York and Pennsylva- variation: Some players prefer an nia. Ash used to be the wood of end-weighted bat, while others choice in baseball, but lately maple like a balanced bat. Louisville has become more popular, ac- Slugger makes about 6,000 models counting for 70% of professional

of wooden bat and offers about a JESSICA EBELHAR FOR THE WALL STREET JOURNAL (3) orders, he says. dozen different finishes. Some pros are quite involved in “There is nothing more difficult using when they head to the system. models himself. the bat-making process, and Mr. than hitting a baseball, and these plate,” he says. When his pro career ended, he A professional ballplayer typi- Sass says he’s happy to oblige. guys are making their livings do- The man speaks from experi- moved back home to Louisville and cally travels with eight to 12 bats From the factory floor, he’ll often ing it. They really need to have ence. He spent three years in the started working for Louisville in tow, and Mr. Sass wants his take photos of various wood grains confidence in the product they’re Milwaukee Brewers’ minor-league Slugger at 26. He still tests new company’s name on as many of and text a player for approval.

good idea to research restaurants ployer know when your family is TRIPS that will fit the family dynamic. coming along. Mr. Polito suggests When traveling with his son, he asking permission in advance, likes to seek out hotels that have a though not before the business Continuedfromthepriorpage pool, babysitting services, activi- purpose of the trip has been firmly time and experience,” Mr. Polito ties for children and, if possible, a established. says. This is especially important children’s menu in the restaurant. Also, make it clear that you’re if multiple generations are in- Sometimes Mr. Polito brings paying for your family’s travel ex- volved. With the New York City only his wife. “I only do this when penses yourself. Any extra ex- trip, for example, Mr. Polito I know I can spend time with her,” penses that arise from your fam- planned activities that would ap- he says. It can be wise to arrange ily—such as extra hotel rooms, a peal to both his parents and son, activities for your spouse. “My larger suite, or airline tickets— such as visiting the Metropolitan wife loves yoga, so she’ll take should be paid with your personal Museum of Art and the Museum of classes in the morning when I credit card. “It’s always better to Natural History. His son “can start have meetings, and when I’m done be transparent,” Mr. Polito says, looking at history and learning with my business activities we can “rather than have the employer things; these are good for grown- spend time together.” find out and think that you had ups as well,” he says. It is also a It is important to let your em- something to hide.”

Five Tips Only bring your family along if you can draw a clear line between business and personal time.

Cities with no language barriers, or which your spouse knows well, tend

to work best for such trips. AMY DEVOOGD FOR THE WALL STREET JOURNAL

Let your employer know ahead of time—and make it clear you will cover Ask Teri | Teri Agins answers readers’ your family’s travel expenses. fashion questions When multiple generations are How can I keep my shorts these strips at home from felt or involved, plan things ahead and seek Q: from bunching up between my choose brands such as NoRiders.com. out activities that will appeal to all. thighs when I am walking? These are Longer shorts and biker shorts: Bermuda shorts—the longer ones that Heavier fabrics such as stretch denim Stay a few extra days so you have stop around midthigh. that fit closer to your legs are the some real family time. —PR, Brooklyn best way for most women to be comfortable. Nothing beats the spandex-in- While it’s plenty hard to find a fused bike shorts, which will stay A: pair of flattering jeans, men down when you walk or exercise. I be- and women are additionally frustrated gan using black bike shorts last year, by the search for good-fitting shorts. choosing the ones with at least a 7- At least men have basketball play- inch inseam or longer. I also like how ers to thank for leading their fashion spandex acts like a girdle. Wear a lon- to longer, baggy shorts. The challenge ger, but not baggy, top that’s no for guys is to find that happy me- shorter than hipbone length. dium—shorts with a longer rise and Cropped and Capri pants: They’re thighs that are just full enough to be not shorts, but they’re cool and stylish. comfortable without looking dumpy. Capri and cropped pants in varying The secret of every pair of pants lengths between your knees and and shorts is the cut, with low-rise above the ankles are the most forgiv- styles being the most difficult and ing for women of all ages and sizes. most uncomfortable to wear. To get the best fit, cropped pants Men: Don’t think only about in- should have a small percentage of seams and waist measurements; spandex, which will eliminate baggy you’ve got to give those shorts a test knees. drive. Walk back and forth along a Pull-on or side-zip styles without long corridor and keep experimenting. belt loops and back or side pockets fit Finally, take note of what I tell women. the best. Try styles with flat elastic Women: You want to look svelte— waistbands and slightly fuller legs (in- so that means no baggy shorts, as cluding culottes). Any pair you wear loose fabric still bunches. You must try with a longer rise (9 inches and up) on lots of cuts. Consider: are cut to sit at your waistline or Inseam tapes: These sew-in, iron- slightly above and aren’t prone to on and adhesive patches and strips bunching.

BENJAMIN HOSTE FOR THE WALL STREET JOURNAL (2) can be attached to the inseams of On a recent New York trip, Mr. Polito made sure to plan activities that would appeal to his wife, Maddalena, and his your shorts. They will make them stay Email [email protected] with your six-year-old son, Roberto. His son went to the flagship Lego store in Manhattan and checked out views from the hotel. down when you move. You can make questions. For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com THE WALL STREET JOURNAL. Thursday, June 23, 2016 | D3 STYLE & TRAVEL To Sell Fragrance Online, a Scent’s Reach May Help

BY ELLEN BYRON

Eric Korman wants to remake how people buy fragrances. The former head of e-commerce at Ralph Lauren Corp. this week will launch Phlur Inc., a line of unisex fragrances sold only online. The company aims to dodge the crowded and confus- MARKETING ing bustle of retail DECODER store fragrance coun- ters and the sometimes-bewildering language used to describe how perfumes smell. “Talking with a scent expert about fragrance notes sucks all the joy out of Anne Serrano-McClain. Phlur makes a line of unisex the room, just like an oenophile sucks Phlur’s Olmsted & Vaux scent, for fragrances, above, sold only online. the joy out of drinking wine,” says Mr. example, should be sprayed once per Its website, right, includes Korman. For $10, people can purchase wrist and ankle and will last approxi- descriptions of each scent’s style and two fragrance samples from Phlur and mately six to eight hours on skin, and a tip sheet on how and where to if they decide to purchase a full bottle, one to two days on clothing, the com- spray the scent, the strength of the the $85 price tag is cut to $75. pany says. Its sillage, the fragrance in- smell’s wake and how long it lasts. Phlur also wants to serve as a guide dustry term for the wake of a scent to wearing fragrances. Each of its six (or how far the scent reaches beyond By contrast, Phlur’s Siano fragrance scents has a tip sheet on how many your skin) is rated as medium. It “hits intends to be a celebration of nightlife times and where they should be them right as they’re close enough to and “for those who want to own the sprayed, how far the fragrance will shake your hand,” according to the tip room,” says Mr. Korman. It will last 10 travel once applied and how long it will sheet. to 12 hours on skin, and up to three last on skin and clothing, respectively. “It was designed as this quiet confi- days on clothing. Its sillage is “far.” “One of the things that seem to be dence boost at the start of your pro- Male and female wearers should spritz missing from the category is how a fessional day,” says Mr. Korman. “When it on their wrists as well as the back scent objectively wears,” says Mr. Kor- you’re in the office, it’s not the mo- of each knee. “Ultimately people will do

man, who wrote the tips with help ment when you want to make a big what they’re more comfortable with,” PHLUR (2) from the company’s fragrance evaluator fragrance statement.” says Mr. Korman.

From there, the results quickly sense alert: You should never use going to use these on a plane, HEADPHONES fell off a cliff. The Parrot Zik 3, noise-canceling while driving, rid- which could you nap in? Bang & Olufsen Beoplay H8, Sen- ing a bike or walking in traffic or Two of the headphones—from nheiser Momentum Wireless and near train crossings.) B&O and Samsung—sit on, not ContinuedfrompageD1 that even the best noise-canceling Samsung Level On Wireless Pro all Of course, there are other fac- over, your ears. Some people, es- I had long suspected noise-can- tech has limitations. It can counter showed just-passable reduction. I tors that go into picking the right pecially those who wear earrings, celing headphones were a gim- low-register and constant sounds, wouldn’t buy them just for noise- pair of headphones. swear by on-ear headphones, but I mick. This experiment convinced like the hum of an engine, but of- canceling. The JBL Everest Elite Audio quality: Audio geeks ar- found they pressed against my me I was mostly wrong. Because ten not higher-pitched ones. Who- 700 and Beats Studio Wireless gue that noise-canceling distorts glasses and quickly got uncomfort- my music no longer had to fight ever invents noise-canceling tech music; some would rather use able. for attention, I discovered detail in that filters the crying of babies high-end headphones without the Of the over-ear variety, Bose it I didn’t even know was there. and/or politicians will surely be- tech, even on a plane. I’m not in was the most lightweight and My aha moment: Listening to come a billionaire. that camp. A few of these headsets comfortable. And the headset’s Taylor Swift’s hit “Blank Space,” There’s no industry standard provided significantly better sound clear physical buttons made it for the first time I accurately for noise-canceling, and I was sur- quality than the headphones I nor- easy to turn on and adjust volume. heard her sing “got a long list of prised at how wildly the eight mally use. Style: My colleagues actually ex-lovers,” rather than “all the headphones I tested varied in ca- The best sound—with noise- laughed when I walked in one day lonely Starbucks lovers.” pability. I fashioned my portable canceling turned on and turned wearing the JBL headphones. How do they work? Imagine a comparison rig with the guidance off—came from Sennheiser’s Mo- Their large ear pads apparently

fire hose pointed at a target—your of Richard Craig, whose firm BRC EMILY PRAPUOLENIS/WSJ mentum Wireless, currently selling made me look like a space alien. ear—and the water is sound waves helps pro engineers measure and Tech has improved for $400. It had balance and rich You won’t win any style points for that travel through the air. Say analyze sound. Using an old ear- detail across all genres. It might the pleated pads on the Bose, ei- you used a second fire hose to de- bud as a holder, I was able to stick wireless headphones but have been my overall recommen- ther, though at least they are slim flect the first hose’s stream from a tiny microphone into my ear and their sound-killing dation, if not for its mediocre and foldable. Parrot’s Zik line is all the target. That is kind of what monitor sound using an app on my noise-canceling. about fashion, with faux crocodile noise-canceling tech does. Micro- phone. capabilities vary widely. The Bose had good balance and skin that you will either love, or phones on each set listen for out- Aboard the 737, I repeatedly detail for pop music but they were find exquisitely ugly. For my aes- side sound, and then speakers in- measured sound in decibels—first just OK at classical. The Sony thetic, the coolest were the fold- side the headphones play the sonic without any headphones, then were even worse. headphones often beat Bose in able Sony, which come in five opposite. while wearing headphones alone, On my light-rail train commute, sound quality, making them a seri- candy colors. You’d think this would make then finally with noise-canceling the roar in the station fell to a din ous rival to the longstanding The lesson: You don’t always things louder, but in fact the turned on. when I wore the Bose headphones. champ. The Beats headphones get what you pay for. My favorite sound waves neutralize each other. Headphone padding alone did With the Beats, I had difficulty de- sounded decent, but they jack up noise-canceling headphones—Bose You only feel a slight change in little to dampen the drone. With termining whether noise-canceling the bass by default. That’s not bad and runner-up Sony—aren’t cheap pressure, as if you just rode ex- the noise-canceling turned on, the was turned on. for pop music, but they make at $350, but three other pairs in press to the top of the Empire Bose cut it by a significant 21 dB. Wearing the Bose or Sony other kinds of music sound odd. my test lineup sell for $400 or State Building. Sony’s $350 h.ear on Wireless was headphones on the street is a little Comfort: Which fits your ears more. Try on a pair before buying. Before you shell out for the a respectable runner-up, notching disorienting because you can’t well enough to seal out unwanted See if you can give the store the headphones, though, understand a17dBreduction. hear what’s coming. (Common noise? And, since you’re probably silent treatment.

relatively short, even when regular CLEAR screening lines are long. Phil Cor- riveau, a consultant in Raleigh, N.C., signed up for Clear when it ContinuedfrompageD1 first started and renewed his already using biometrics in San membership for five years. He still Jose, Calif., for boarding passes— has more than two years remain- travelers can get on flights with ing, but he hasn’t bothered to re- just their fingerprints. Clear hopes activate. “I don’t see any advan- airlines will start using biometrics tage to going back to Clear,” Mr. to simplify entrance to airport Corriveau says. He uses PreCheck. clubs—two fingers on a reader in- Clear faces a chicken-and-egg stead of showing a card or having problem with airports: Many are a clerk verify membership. reluctant to contract with the Customs and Border Protec- company because enrollment in tion’s Global Entry program uses their city is small. But Clear says fingerprint readers to identify membership rolls are small in trusted travelers who can skip some cities because the service passport control lines. Airlines are isn’t available. working on baggage tags issued Miami International Airport from biometric identification in- brought Clear into two check- stead of driver’s license and reser- points a year ago because it vation number. And retailers may wanted to offer a customer- someday use biometrics to speed friendly option. But the service up purchases at airport stores, “has not had a major impact on since Clear has customer credit our overall checkpoint through- cardsonfile. put,” airport spokesman Greg Chin Another path: sports stadiums. says. Miami expects usage to pick The San Francisco Giants, Colo- The Transportation Security Administration calls Clear a ‘concierge service’ that lets travelers move straight to up with Delta’s push for its fre- rado Rockies and Miami Marlins screening and avoid lines. Long lines for security screening, such as the one May 5 at Denver International Airport, quent fliers. are using Clear to give fast access above, have sparked rapid growth in Clear sign-ups. Enrollments have tripled so far this year compared with 2015. Las Vegas McCarran Interna- to member fans at baseball games. tional Airport says Clear verifica- The New York Yankees have tried of bankruptcy in 2010 and offered tions at its checkpoints tripled in Clear for suite access. to honor the 160,000 existing the first four months of 2016 com- Clear doesn’t do background memberships. Alclear was formed pared with the prior year, but re- checks. It verifies identity by by Ms. Seidman-Becker and co- main very small. In March, for ex- checking passports or driver’s li- founder Ken Cornick, Clear’s presi- ample, Clear handled 10,203 censes, plus specific questions on dent and chief financial officer. passengers, or one-half of 1% of past history similar to credit-ap- The company is based in New the two million people who de- plication type queries. Enrollment York. parted from McCarran that month, can be done in a few minutes. Some travelers say the cer- the airport says. Clear originally issued cards, but tainty of not having to wait in TSA It isn’t clear if Clear saves TSA now just identifies members by lines at airports with a Clear sta- time processing passengers. A TSA the fingerprints, iris scans and tion allows them to schedule more spokesman says the document- photographs it collects. meetings on business trips or checking process is likely to be At checkpoints, Clear employ- spend more time at the beach. faster, but TSA has never studied ees verify identity, check boarding They can show up at the airport that. Clear, TSA says, is a “con- passes through TSA’s system, then only a few minutes before flights cierge service” that operates under carry the Clear member’s bags to start boarding. contracts with airports to make the X-ray machine belt. All Clear “It’s almost like you’re paying screening quicker and easier for

members still go through physical FROM TOP: ANDY CROSS/THE DENVER POST/GETTY IMAGES; CLEAR to get out of jail,” says John some customers. screening. Ormesher, a Florida-based semi- TSA monitors and inspects The cost of such privilege is counted rates for all members of eryone through the same screen- conductor distributor who travels Clear but doesn’t share data. The $179 a year, but Clear does offer its SkyMiles frequent-flier pro- ing process even though some peo- frequently for business and plea- agency says getting cleared by discounts, such as a current $59 gram. ple were willing to undergo sure and signed up for Clear in Clear only means you go to front Groupon for a nine-month mem- Clear was launched in 2006 by background checks for expedited January 2015. He’s loved it so far. of the travel document check line. bership. Family members are $50 Verified Identity Pass Inc., a com- screening. “If there are 25 or 30 or 50 people At some airports, TSA lets travel- and children under 18 are free. pany founded by New York jour- Verified Identity won over few in a PreCheck line, we jump right ers verified by Clear go right to Delta says it will offer free Clear nalist and entrepreneur Steven airports and few customers and ahead of all those folks,” he says. screening. At others, TSA officers memberships to its diamond-level Brill. He was frustrated that the went bankrupt in 2009. A new But others think it’s wasteful, double-check boarding passes after frequent fliers shortly and dis- newly formed TSA was putting ev- company, Alclear, bought Clear out since PreCheck lines are usually Clear. For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com D4 | Thursday, June 23, 2016 THE WALL STREET JOURNAL.

ELECTION2016 COVERAGE YOU CAN GET BEHIND

With so much hype surrounding this election, it can be hard to focus on the issues that matter. The Wall Street Journal’s critical reporting and analysis helps you see past the spectacle, bringing you the insight you need to understand what’s at stake, for the next four years and beyond. Read now at WSJ.com/politics

©2016 Dow Jones & Co. Inc. All rights reserved. 6DJ3728 For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com THE WALL STREET JOURNAL. Thursday, June 23, 2016 | D5 ARTS IN REVIEW

ART Artist as Evangelist for New Technologies

László Moholy-Nagy’s ‘Light Prop for Moholy-Nagy: Future an Electric Stage’ (also known as Present ‘Light-Space Modulator’; 1930, replica Solomon R. Guggenheim Museum constructed 2006). Through Sept. 7 role in promoting the international BY RICHARD B. WOODWARD language of Modernism. He had strong views about its expression, New York arguing that paintings should not re- ászló Moholy-Nagy (1895-1946) fer to anything in nature, and pho- L carried the banner for experi- tography should never be wholly ab- mental Modernism so confi- stract. dently that even when world events His zealous faith in the camera as threatened the optimism of the an instrument for what he called movement, his buoyant example “The New Vision” was based on his could not be ignored. belief that it could alter humankind’s At least a few of his contributions relationship with the world. Tone re- to theory or practice can be found in versals, double exposures, extreme any history of 20th-century art. Pro- cropping, aerial perspective—these lific in half-a-dozen media (painting, techniques could free the mind from sculpture, photography, film, mu- convention, which was the enemy of seum and theater design), the Hun- art. garian-born artist was even more es- “Future Present” has a host of su- teemed as a teacher, first at the perb examples from the 1920s. Along Bauhaus in Germany and then, after with the often-reproduced “Self-Por- 1937, at the New Bauhaus and the In- trait With Hand” and the views look- stitute of Design in Chicago. Outside ing down at a snowy landscape from the classroom, in proselytizing arti- a Berlin radio tower are numerous cles, manifestos and books, he chal- less familiar items, such as a series lenged generations of students to ex- of photomontages mocking German pand their artistic boundaries by athletics and photograms from 1926 adopting the latest technologies and where he indulged his clownish side. processes. (Pressing his face against a sheet of “To be a user of machines is to be photographic paper, he evolved into in the spirit of the century,” was one a cross between a Picasso and the of his rallying cries. man in the moon.) “Moholy-Nagy: Future Present,” Toward the end of his life, Mo- the traveling retrospective now at holy-Nagy tended to repeat himself. the Solomon R. Guggenheim Mu- His geometric canvases from the seum, opens at a time when his mes- 1940s look tired and anemic. He paid sage should resonate with millenni- the price for eclecticism and a serial als and in a space where his forward- approach to making art. If narrow charging art is entirely at home. mastery is a foolish goal, one experi- Although almost 300 works from various genres are on display, they unfold in one long breath, as if com- ‘To be a user of machines missioned for Wright’s rising spirals. is to be in the spirit of the A more sympathetic installation is hard to imagine. The trio of cura- century,’was one of his tors—Carol S. Eliel (Los Angeles rallying cries. County Museum of Art), Karole P.B. Vail (Guggenheim) and Matthew S. Witkovsky (Art Institute of Chi- cago)—know when to agglomerate ment can be as good as another. works for maximum impact and He never stopped looking for when three’s a crowd. Many of the ways that technology could serve his photographic works are clustered in agenda. In one of the last bays is a groups, on angled partitions, slide show of his work (1937-46) in whereas the abstract paintings and Kodachrome. (The squiggly images

sculptures are kept generously apart PRESIDENT AND FELLOWS OF HARVARD COLLEGE are like neon strings of DNA.) And from one another. until his death, he was still capable The chronological walk to the top known as “Light-Space Modulator”; ets and postcards to envelopes and have ordered them by telephone of being ahead of his time. His has a few special turn-outs. One is a 1930; replica constructed 2006) invoices. from a factory—Moholy-Nagy clearly torqued clear Plexiglas sculpture walk-in of his “Room of the Present” whirls its gears and casts unpredict- The school’s embrace of industry broke with standard artistic practice. “Double Loop” (1946) is as futuristic (conceived in 1930; finally realized in able shadows. (He used it in making under director Walter Gropius suited Like Robert Capa, Brassaï and as any computer-aided construction. 2009), a sleek ensemble of gizmos his 1930 film, “A Light Play: Black- Moholy-Nagy’s philosophy of art. other peripatetic 20th-century Hun- Wright’s museum is also forever that has retained its contemporary White-Gray,” playing on a wall fur- The curlicue shape in “Nickel Sculp- garians, he had a chameleon-like young. A view of the sky through the edge. Indented within the wrap- ther along in the show.) ture With Spiral” (1921) seems inability to adapt to his environment. glass dome is a fitting cap to a retro- around cabinets are areas where Largely self-taught as an artist, spired by shavings from a lathe. The After fleeing Hitler and before head- spective about an artist for whom clips of films by Sergei Eisenstein Moholy-Nagy did not sharply distin- geometric planes and lines of three ing to America, he stopped in Eng- light was always a basic and won- and Dziga Vertov play continuously guish between fine and applied art. paintings from 1923 are typical of land (1935-37) and found work mak- drous material. on screens, like a prophecy of TV, One vitrine contains some of his Constructivism. But in his choice of ing ads for Harris Tweed and the and where his mechanical “Light graphic designs (1919-29) for the materials (enamel on steel) and their London Underground. Mr. Woodward is an arts critic in Prop for an Electric Stage” (also Bauhaus, everything from book jack- mode of production—he claimed to His emigrations were eased by his New York.

MUSIC With as Much Craft as Power

BY JIM FUSILLI about his explosive entrance on patterns on the cymbals. On sev- fault”: For the most part, Ms. Rich- and a beautiful rendition of “Black Magic,” the album opener. eral tracks, Mr. Marsden plays ardson is relegated to the sidelines “Bruises” sung by Mr. Marsden. Brooklyn, N.Y. He laughed as if to acknowledge it plucky single notes, the result of as a lead vocalist. “Live at Brixton” The “unplugged” performances s demonstrated on its newest was a bit much. The band flashes which is an all-percussion under- and the trio’s earlier albums sug- sounded nothing like the recorded A album, “By Default” (BMG), its affinity for melodrama and wit pinning. Raspy and rocking, the gest it profits from two distinctive versions. Thus, the songwriting, as BandofSkullsplayswithun- in its arrangements, and when it high-energy “Back of Beyond” is as singers. much as the three amiable musi- mitigated authority in a style touches terrain explored earlier by hooky as a pop hit. Mr. Hayward said the trio is “a cians, was the afternoon’s star, and mined by the Black Keys, Jack the likes of the Doors and Billy “By Default” is the fourth studio band that operates as a band,” it was clear that if Band of Skulls White’s various projects and other Idol, it does so with a refreshing album by Band of Skulls, whose building sketches into composi- wanted to succeed as a folk-rock contemporary tions from the trio, it could easily do so. blues-based ground up. The group returns to its custom- groups. In con- They separate, ary thunderous ways on Saturday, cert, it works return with playing at England’s mammoth at maximum their ideas— Glastonbury Festival, where some volume as Rus- “show and 200,000 music fans are expected. sell Marsden tell,” Mr. Hay- Band of Skulls will return to the demonstrates ward called U.S. and Canada in early Septem- he could be an these re- ber. “By Default,” the band’s repu- old-school gui- unions—and tation for live performance and tar god if he work until Sunday afternoon’s delight suggest chose to. songs and ar- those shows might be extra special. But on Sun- rangements day, drummer emerge. The Mr. Fusilli is the Journal’s rock Matt Hayward, photo on the and pop music critic. Email him at Mr. Marsden cover of “By [email protected] and follow him on and bassist Default” de- Twitter @wsjrock. Emma Rich- picts the ardson came band’s gear set from South- up in a South- Pepper ... ampton, Eng- ampton church And Salt land, to Rough where they re- Trade here and fined its latest THE WALL STREET JOURNAL performed Band of Skulls’s songs. “The “unplugged” most recent best things we for an audi- album is ‘By ever do are the ence of about Default’ (BMG). purest collabo-

60 people. In a ANDY COTTERILL rations,” he seven-number, added. 30-minute set, the trio revealed lack of pomposity. name is nothing more sinister than At Rough Trade, Mr. Marsden that song craft as much as power is If Band of Skulls likes big, bruis- a spoof on Talking Heads, a South- and Ms. Richardson played acoustic essential to its excellence. ing statements, it also enjoys aban- ampton club they’ve played many guitars while Mr. Hayward, with a The mostly acoustic performance doning them in search of sonic di- times. But Mr. Hayward said it con- drum kit nowhere in sight, played a confirmed that Band of Skulls, versity. In its arrangements on “By siders itself a band best savored in Fender Jazzmaster to add colors to when in its customary rock mode, Default,” the trio mixes in dollops concert, and 2013’s “Live at Brix- an environment that was far re- uses volume and force to give tex- of ’80s hard rock and fuzzy garage ton” disc supports the contention. moved from wall-rattling rock. The ture to its sound rather than to rock while nodding toward funk If “By Default” presents the group brief set was a revelation: “So conceal a lack of musicality. But and twang. “Killer” and “Embers” as commanding, self-possessed yet Good” was conveyed as driving the trio does like to muscle up. On kick off with monster unison riffs perhaps a bit too tidy—more alt- folk-rock, “Bodies” as an ambling the new album, Mr. Hayward seems before zooming toward moods that rock than the White Stripes—on blues ballad. The trio went to pre- intent on breaking his drum heads are sly and slinky. Sung by Ms. “Live at Brixton” it’s broody, brutal vious albums for “Hoochie on several tracks; when we spoke Richardson, “So Good” profits from and daring, as if a live setting sets Coochie,” which was performed as “I assure you my exuberance is ra- by phone last week, I asked him her funky bass and Mr. Hayward’s the trio free. One beef with “By De- something akin to a folk-boogie, tional.” For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com D6 | Thursday, June 23, 2016 THE WALL STREET JOURNAL. SPORTS

Jason Day and Rory McIlroy Heard On during a match play event in The Field Austin, Texas, earlier this year.

Knicks Trade for Rose; Teague Goes to Pacers While the Cavaliers celebrated their championship with a parade in Cleveland on Wednesday, some NBA teams were positioning their rosters for next season. The New York Knicks traded for Chicago Bulls point guard Derrick Rose, forward Justin Holiday and a 2017 second-round draft pick, in exchange for center Robin Lopez and guards Jose Calderon and Jerian Grant. The 27-year-old Rose, who will make $21.3 million in the final year of his contract, has battled various injuries over the past four years, including two major knee surgeries. He played in 66 games last season, averaging 16.4 points, 3.4 rebounds and 4.7 assists. According to reports, the Atlanta Hawks sent point guard Jeff Teague to the Indiana Pacers in a three-team trade that sent Pacers’ point guard George Hill to the Utah Jazz and the Jazz’s No. 12 pick in this year’s draft Zika Fear Is Swarming Olympic Golf to the Hawks. —Paolo Uggetti Iceland and Ireland Rory McIlroy becomes the next month. “Family for me is prior- yama told Japanese news outlets who bails on the Games for reasons latest elite player to pull out ity number one. I have to make sure earlier this month. short of what the IGF calls “urgent Advance at Euro 2016 that they’re happy, and from there While a handful of other high- medical conditions” or “exceptional It took two weeks of soccer to of the Rio Games; Jason Day I’ll make the decision.” profile athletes, such as Pau Gasol of circumstances” could cost his coun- eliminate eight teams from Euro remains undecided Day’s comments came just days the Chicago Bulls, have said they are try a spot in the tournament. The re- 2016, but the round of 16 is finally after Spieth and fellow American staying home because of the Zika placement list is based on the world set. And the highlight of the round BY BRIAN COSTA Rickie Fowler, both of whom were risk, golfers seem to be more con- rankings. is a clash between Italy and two- presumed to be all-in for Rio, hedged cerned than most. “I think that we’ll have an excel- time defending champion Spain. Springfield, N.J. on their plans. Before the U.S. Open This is likely due to scheduling as lent Olympic Games,” Votaw said. All the European powerhouses In seven weeks, golf will return last week, Spieth said he was going much as anything: the Games are “We’re spending a lot of time talking advanced, but the group stage will to the Summer Olympics for the “pending schedule changes” and po- sandwiched in between the PGA to players and their representatives be remembered for its minnows. first time in 112 years. It is getting litely corrected a reporter who said Championship, which is the final ma- about the issues that they’re raising.” Iceland, the smallest country ever increasingly difficult to tell how he had decided to play. jor of the year, and the FedEx Cup It’s worth noting that the men’s to play at a major tournament, is many of the world’s top players will Fowler, one of three other Ameri- tournaments that culminate with a field represents only half of golf’s through to face England. Northern be there. cans expected to qualify, said he still $10 million prize to the winner. return to the Olympics. Not one fe- Ireland meets Wales. And Hungary For months, as questions per- needs to learn more about potential In fairness, Olympic golfers will male golfer has publicly expressed takes on Belgium. The other four sisted over whether PGA Tour pros health and security issues in Brazil. also be required to be outdoors for any doubts about their intent to par- matchups are: Switzerland vs. Po- were sufficiently jazzed about the “I’d love to have the opportunity to as long as six to seven hours at a ticipate in the women’s tournament, land, Croatia vs. Portugal, France vs. event, organizers emphasized that go down there, but we don’t know time—not an entirely appetizing which begins Aug. 17. World No. 1 Ireland, and Germany vs. Slovakia. stars such as Jordan Spieth and Ja- for sure yet,” he said. prospect in the midst of a mosquito- Lydia Ko of New Zealand became the The tournament’s new format son Day were enthusiastic. But en- Danny Willett, Masters champion borne epidemic. latest player to say earlier this meant four of the six third-place thusiastic and committed are prov- and England’s highest-ranked golfer? On the PGA Tour, players are typi- month that she is undaunted by Zika finishers advanced from group play. ing to be two very different things. “It’s still up in the air,” he said. cally not required to commit to play- and excited about the chance to win That delivered five hours of mad Just a few weeks after declaring All told, only four of the top 10 ing in an event until the Friday before a gold medal. permutations Wednesday as the himself “ready to play,” world No. 4 players in the world have been unit begins. “I’m not sure where I’ll play But the loss of McIlroy, a four- fates of half a dozen teams hung in Rory McIlroy released a statement equivocal about their intent to play: next, even after this week,” Spieth time major winner who would have the balance. Turkey and Albania Wednesday saying that he has de- Americans Dustin Johnson and said. “I mean, you just never know.” been among the most famous ath- were the third-place sides to miss cided not to travel to Rio de Janeiro Bubba Watson, Sweden’s Henrik The Olympics don’t really work letes at the Summer Games, is un- the cut. —Joshua Robinson for the Olympics, citing concerns Stenson and England’s Justin Rose. that way. The cutoff for Olympic doubtedly a blow for the sport’s over the Zika virus. Eighth-ranked Adam Scott of Aus- qualifying for golf is July 11. On that long-awaited Olympic return. While “Even though the risk of infection tralia has already removed himself date, a field of 60 players will tenta- golf is set to be included in the 2020 from the Zika virus is considered low, from consideration, citing a busy tively qualify based on their world Games in Tokyo, its Olympic future it is a risk nonetheless and a risk I schedule. He joins South Africans ranking, with a limit of two players beyond that will be subject to an IOC am unwilling to take,” said McIlroy, Louis Oosthuizen and Charl Schwart- per country— unless a country has vote in 2017. who was born in Northern Ireland zel, Vijay Singh of Fiji, Miguel Angel more than two players in the top 15. In 2009, when golf was voted but planned to represent Ireland. Jimenez of Spain and Marc Leish- Those players qualify at a limit of back into the Olympics, organizers Hours later, top-ranked Jason Day man of Australia on Team Staying four per country. surely dreamed of a 40-year-old Ti- of Australia said he couldn’t yet Home in 2016. Ty Votaw, a PGA Tour executive ger Woods strolling the Rio fairways commit to the men’s tournament, Ireland’s Shane Lowry and Japan’s who is also vice president of the In- and commanding the attention of which begins Aug. 11. Hideki Matsuyama—both top-25 ternational Golf Federation, said network cameras. Now, Woods is on “It’s a life decision that you have players—have also expressed uncer- each national Olympic committee indefinite hiatus from the game, Zika to make,” Day said during a visit to tainty about their plans in recent then has until July 18 to confirm concerns are scaring off top players Baltusrol Golf Club, where he will weeks, citing Zika. “I won’t know their entries. and the makeup of the men’s field is defend his PGA Championship title right until the last minute,” Matsu- After that, any qualified player as murky as ever.

NBA Teams Are Hiring: College Wins Not Required

There aren’t many No. 1 picks in 100-1 the history of the NBA draft who en- LSU forward Hitting the Jackpot? countered more criticism as a college Ben Simmons NBA Drafts since 2006 and the number of combined NCAA Tournament player than Ben Simmons. If the Lou- Odds that the wins accrued by the lottery picks in the year they were drafted. isiana State forward is the Philadel- TOURNEY WINS NHL’s Las Vegas DRAFT BY LOTTERY PICKS LOTTERY PICK WITH MOST TOURNEY WINS The Count 2016* 12 Buddy Hield (4) expansion team, 2013 16 Trey Burke (5) phia 76ers’ selection Thursday, as ex- 2014 16 Julius Randle (5) which is set to pected, he would be the first person 2010 25 Gordon Hayward (5) begin play in the in college basketball’s one-and-done 2006 26 Tyrus Thomas (4) era to be selected with the top pick despite not playing in the 2011 26 Kemba Walker (6) 2017-18 season, NCAA tournament—one of the 2008 27 Brandon Rush (6) wins the Stanley brightest red flags on his employ- 2009 28 Tyler Hansbrough (6) ment résumé. 2012 32 Anthony Davis/Michael Kidd-Gilchrist (6) Cup in its first year. But here’s the strange thing about 2015 37 Jahlil Okafor/Justise Winslow (6) this year’s NBA draft: The top prospects who actually played in the NCAA 2007 41 Al Horford/Corey Brewer/Joakim Noah (6) Source: Westgate Las Vegas tournament didn’t fare much better. In * Projected Source: WSJ Research WSJ fact, the projected lottery picks in DraftExpress’s mock draft as of Wednesday night will enter the NBA ketball, but only Oklahoma guard ally win at least 25 games in the to take someone who didn’t play well, with less postseason success in their Buddy Hield made it past the Sweet NCAA tournament. Last year’s won 37 if at all, in the NCAA tournament. most recent season of college basket- 16. Unless most predictions turn out to because it was lousy with players With the first pick in the 2007 draft, ball than any other group of lottery be wildly inaccurate, this year’s draft from Duke and Kentucky. The last time Portland selected Ohio State center picks in the last decade. also will be the first in that time with the lottery had such little postseason Greg Oden, who played for the na- They won a total of 12 combined no players from the national champi- experience was in 2013—and that no- tional title as a freshman. That left games in this year’s NCAA tourna- onship game selected in the lottery. toriously weak draft was the first that Seattle with someone with only one ment—which was by far the worst A look back at the 10 drafts of the didn’t send a single player to the All- NCAA tournament win. It seemed to showing since 2006. Of the 14 poten- one-and-done era reveals how unusual Star Game in the next three seasons. work out for them: That guy’s name tial lottery picks, 12 played college bas- this year’s class is. Lottery picks usu- But it’s not always the worst idea was Kevin Durant. —Max Cohen

FEATURE: DAVID CANNON/GETTY IMAGES; THE COUNT (L-R): KATHY WILLENS/ASSOCIATED PRESS, ETHAN MILLER/GETTY IMAGES; HOF (T-B): JONATHAN DANIEL/GETTY IMAGES, MARTIN MEISSNER/ASSOCIATED PRESS