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* * * * *
10-YR. TREASURY
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rumps presidency
could boost growth and
bring higher rates and inflation along with the risk
of global trade wars, economists surveyed said. A1
The mortgage market
could be upended by the
election, with higher rates
and looser regulations. B1
Gold has fallen 8.5% since
Election Day amid investor optimism that Trumps policies
could boost the economy. B11
The dollar has climbed
2.4% on the election, as investors see higher rates. B11
Philippine officials returned $15 million of $81
million stolen from Bangladeshs account at the New
York Fed in February. B1
VW confirmed that the
U.S. and EU are probing carbon-dioxide emissions in
certain Audi automatictransmission vehicles. B3
Pfizers Celebrex posed
no higher risk to a patients
heart than rival painkillers,
according to a drug study. B1
Electric utilities reliance
on coal has dropped, making
Trumps vow to revive the industry hard to fulfill. B3
AMC appears set to win
approval for a $1.2 billion
deal for Carmike Cinemas. B5
World-Wide
Trump named RNC
Chairman Priebus as his
chief of staff, suggesting the
president-elect is interested
in a more conventional approach to governing. A1
House Republicans are
expected to renominate
Ryan as speaker, as grumblings over his tensions
with Trump recede. A4
Iraqi troops pushed
deeper into Mosul, securing densely populated areas as Islamic State resistance began to buckle. A1
BY MICHAEL C. BENDER
AND CAROL E. LEE
President-elect Donald Trump
named Republican National
Committee Chairman Reince
Priebus as his chief of staff, a selection that suggests the Republican is interested in a more conventional approach to governing
after his insurgent campaign.
Mr. Trump on Sunday also
named Stephen Bannon as his
chief strategist and senior
counsel. Mr. Bannon, who was
chief executive of the Trump
campaign, was in consideration
with Mr. Priebus for the White
Houses top personnel position.
Steve and Reince are highly
qualified leaders who worked
well together on our campaign
and led us to a historic victory,
Mr. Trump said in a statement.
Now I will have them both
with me in the White House as
we work to make America great
again.
The selection of Mr. Priebus as
staff chief is an important marker
in Mr. Trumps high-pressure
race against the clock to build the
next administration. That effort
begins in earnest on Monday, as
his broader transition team holds
its first formal meetings since a
shake-up on Friday that installed
Vice President-elect Mike Pence
atop the organization.
Still, Mr. Trumps transition
is slightly behind the pace set
by previous incoming presidents and the timetable estabPlease see STAFF page A4
Colombias president
plans to present a new peace
pact with rebels to Congress,
bypassing voters who rejected an earlier deal. A8
South Koreans called for
President Park to resign, in
the countrys largest demonstrations in decades. A9
Pro-Russian candidates
appear to have won presidential elections in Moldova and Bulgaria. A9
Chief Strategist
REINCE PRIEBUS
DONALD J. TRUMP
STEVE BANNON
BY JOSH ZUMBRUN
The presidency of Donald
Trump is poised to usher in a
new era for the U.S. economy
that forecasters say could
boost economic growth, bring
higher interest rates and inflation, and a new set of potential risks including international trade wars.
8%
7
6
5
4
3
2
1
0
95
2000
10
BY NEANDA SALVATERRA
Media............................ B5
Opinion............... A15-17
Sports........................ A14
Technology............... B4
U.S. News............. A2-3
Weather................... A13
World News........ A7-9
>
Central-bank moves pull down returns, making it difficult to meet mounting obligations
Journal Report
The cautious optimism revealed in The Wall Street Journals latest monthly survey of
economists owes to the belief
that the Republicans proposals
to reduce taxes and invest in infrastructure will amount to a
substantial fiscal stimulus.
The change of administration could knock the U.S.
economy out of its low-alti-
marked up their growth forecasts. The economy could expand 2.2% in 2017 and 2.3% in
2018, as the fiscal stimulus
kicks into gear, up from about
1.5% over the past 12 months.
Inflation is seen at 2.2% next
year and 2.4% in 2018. If correct, it would be the first
stretch of sustained inflation
Please see RISE page A2
President-Elect
Diminishing Returns
EU foreign ministers
said the bloc would stick to
its key policy positions but
would work with the new
U.S. administration. A7
Chief of Staff
NORWICH, U.K.There is
one thing Englands professional mole catchers find more
troubling than moles: each
other.
Amid a revival of the ancient anti-mole craft, rival associations are accusing one another of being impostorsand
caring more about money than
about the integrity of their
trade, which involves prodding
the ground to find mole tunnels and then rigging them
with lethal metal traps.
At the center of the conflict
sits Louise Chapman. The 48year-old ex-teacher roams Norfolk in an Audi A3 emblazoned
Lady Mole Catcher on the
side. When she isnt out trapping moles, she does after-dinner mole talks, TV appearances
andas head of the British
Mole Catchers Register, a trade
grouptrains aspiring mole
fighters. She has turned her
operation into a franchise.
Shes an embarrassment to
proper professional mole
catchers, says Ann Chippendale, who claims she, in fact,
was the first female traditional
Please see MOLES page A10
STARTING TODAY
The Wall Street Journal daily print edition is organized into two core
sections. The first section includes U.S. and World news, Sports and
Opinion, as well as new Life & Arts pages featuring the best of the
Journals lifestyle and arts journalism. The second section, Business
& Finance, highlights in-depth coverage of business and finance,
including technology, markets and Heard on the Street.
Please turn to page A2 to read more about the changes in a letter
from the editor in chief, Gerard Baker.
AUCTION WEEK:
5 PAINTINGS
TO WATCH
MEDIA EMPIRE
HEIRS TAKE
BIGGER ROLE
www.ebook3000.com
Weakens as
Iraqis Push
Into Mosul
BY YAROSLAV TROFIMOV
AND ALI A. NABHAN
MOSUL, IraqIraqi troops
pushed deeper into the countrys second largest city on
Sunday, securing densely populated areas as commanders
said Islamic State resistance
began to buckle.
The first neighborhoods
were the hardest because
Daesh desperately fought to
retain them. Now, as we go
forward, I expect the battle to
get easier, said Brig. Gen.
Maan al Saadi, the commander
of the 2nd Group of Iraqi Special Operations Forces, which
are spearheading the Mosul offensive. Daesh is the Arabic acronym for the terrorist group.
The enemy is collapsing
and losing control, and we are
now taking only two days to
seize a neighborhood where
we planned to be fighting for
four days, he said.
In the Arpachiya neighborhood, secured on Saturday,
Abed Abu Ahmed marked the
first morning free of Islamic
State with a shave. The 63year-old engineer stood outside
his home Sunday, small cuts on
his chin the only reminder of
the beards Islamic State mandated for all adult males.
We have been counting
minutes until the troops arrived here, he said. I dont
care if we lose our cars, if we
lose our homes, as long as
Daesh is gone from here.
Islamic State has been putting up a fierce fight. Since the
campaign began on Oct. 17, the
Please see MOSUL page A8
ANDREW HARRER/BLOOMBERG NEWS (PRIEBUS); SHAWN THEW/EUROPEAN PRESSPHOTO AGENCY (TRUMP); CHIP SOMODEVILLA/GETTY IMAGES (BANNON)
Insider Priebus is
appointed chief of
staff; outsider Bannon
named top strategist
HHHH $3.00
Whats
News
CONTENTS
Banking & Finance... B7
Business News.... B2-3
Crossword............... A13
Heard on Street.. B12
Life & Arts....... A11-13
Markets Digest..... B8
WSJ.com
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NY
* *
U.S. NEWS
To Our Readers:
RISE
Continued from Page One
above 2% since before the recession in 2007-09.
While the forecasts are up
in all periods, the effect
would be stronger in 2018,
when new policies would
have had more time to take
effect. GDP forecasts were 0.25
THE
OUTLOOK p e r c e n t a g e
point higher in
2018 than in
forecasts before the election,
inflation forecasts were up
0.15 percentage point and the
yield on the 10-year Treasury
is expected to be 0.31 percentage point higher at the
end of 2018.
The forecasts were collected from 57 academic,
business and financial economists from Wednesday to Friday.
Mr. Trumps administration is only beginning to take
shape, and many economists
cautioned their estimates are
tentative.
Anyone who tells you they
absolutely know what will
happen under a Trump presidency is probably lying, said
Megan Greene, chief economist at Manulife Asset Management.
The priorities of the incoming administration and
congressional Republicans are
being hashed out. Ms. Greene
notes the policies Mr. Trump
could enact the most quickly,
such as restricting trade or
immigration, could do swift
harm to the economy. The
source of the current optimism is tax cuts and infrastructure plans, but these
would take longer to implement because they would
need to go through Congress.
Mr. Trump and GOP congressional leaders share goals
of cutting taxes and reducing
regulations. Most economists
believe tax cuts, especially if
not accompanied by spending
reductions, would produce a
Finance. You will also see, within the section, more clearly defined columns for
companies, equities, bonds, commodities,
currencies and financial institutions and
other categories of business news. Our
popular markets analysis now appears on
the back page, with our celebrated Heard
on the Street column. You can also find
markets data and round-the-clock analysis
at WSJ.com and through our apps.
As before, Journal Reports will appear
on select Mondays and Mansion on Fridays,
so the paper will comprise three sections
on those days. The Weekend edition will
remain a leisurely read, with multiple sections, including Review, Off Duty and WSJ.
Magazine, joining Section A and Business &
Finance.
Over the years, we have adjusted the
format of the paper many times in response to the challenges and opportunities presented by an evolving world. As
Gerard Baker
Editor in Chief, The Wall Street Journal
Shifting Gears
The election of Donald Trump has caused economists to reassess their economic forecasts.
Real growth, ination and bond yields are now expected to rise faster in coming years.
Annual change in real GDP
3.5%
3.5%
3.5%
Forecast
3.0
Forecast
3.0
2.5
2.5
2.5
2.0
2.0
2.0
1.5
1.5
1.5
1.0
1.0
1.0
0.5
0.5
0.5
0
2012 13 14 15 16 17 18
Forecast
3.0
2012 13 14 15 16 17 18
2012 13 14 15 16 17 18
0.05%
2016
0.03
2017
0.15
2018
0.1% 0
0.1 0.2 0.3
Sources: St. Louis Federal Reserve (historical data); WSJ economist survey
conducted Nov. 9-11 (forecasts)
2016
2017
2018
0.1% 0
0.23
0.19
0.1
0.2
0.31
0.3
CORRECTIONS
AMPLIFICATIONS
SkyBridge Capital, a firm
that invests in hedge funds,
was incorrectly called a hedgefund firm in a Global Finance
article Thursday about the Labor Departments so-called fiduciary rule.
missteps.
The potential for a trade
war was cited as the biggest
risk to the economy by 43%
of economists. A move by the
U.S. to impose tariffs on foreign nations could lead to a
spiral of rising trade barriers,
higher import prices, and
shrinking markets for U.S. exporters. Other economists remain worried about the potential
for
business
investment to deteriorate further, after it earlier slumped
in part over uncertainty
about postelection policies.
Everyone will lose if there
is a global trade war, said
Jim OSullivan, chief U.S.
economist at High Frequency
Economics.
Uncertainty on major policy issues limits hiring and
investment decisions, said
Robert Dietz, chief economist
at the National Association of
Home Builders.
Overall, respondents to the
Journals survey see about a 1
in 5 chance of a recession in
the next 12 months. Those
odds have declined slightly
over the past three months,
but are up from 14% a year
ago.
It is still early days. A hallmark of Mr. Trumps campaign was confounding predictions, both good and bad.
There is no forecast model
that can prepare us for this,
said Bernard Baumohl, chief
global economist at the Economic Outlook Group.
CLASSIMA
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By email: wsjsupport@wsj.com
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To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
U.S. NEWS
ForeignStudents HitRecord
College enrollment
Study Hall
from abroad passes
International enrollment in U.S. colleges has been steadily rising
one million, but some the last 10 years, especially among Chinese and Indian students.
Places of origin of international
see bumpy road ahead Number of international
students in the U.S.
BY DOUGLAS BELKIN
AND TE-PING CHEN
1.2 million
1.04 million
s 7.1% from
previous year
38.3%
Other
31.5
China
1.0
0.8
2015-2016
0.6
0.4
0.2
0
2006 07 08 09 10 11 12 13 14 15 16
*Academic years ending in years shown
Source: Institute of International Education
2.6
Canada
15.9
India
5.8
South
Korea
5.9
Saudi
Arabia
RING IN
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10
11
12
*****
WASHINGTONJust a week
ago, House Speaker Paul
Ryans standing looked a little
dicey. But Donald Trumps unexpected presidential victory
has bolstered the Wisconsin
Republicans job security, despite tensions between the two
during the campaign.
House Republicans are expected to choose Mr. Ryan as
their nominee to be speaker
this week when lawmakers return to Washington for the
first time since late September. Other congressional leaders are also likely to keep their
posts, though a group of Democrats are asking House Minority Leader Nancy Pelosi (D.,
Calif.) to delay their leadership
elections. In the Senate,
Charles Schumer (D., N.Y.) is
expected to replace retiring
Minority Leader Harry Reid
(D., Nev.).
Grumblings over Mr. Ryans
Speaker Paul Ryan of Wisconsin is likely to win the backing of House Republicans this week.
faced in which the New Yorker
talked in crude sexual terms
about grabbing women without their consent. Mr. Trump,
in turn, called Mr. Ryan very
weak and ineffective.
But Mr. Trumps win leaves
Mr. Ryan positioned to help
STAFF
FIVE THINGS
Outsider
BannonSet
ToReshape
Position
BY DAMIAN PALETTA
EDUARDO MUNOZ/REUTERS
President-elect Donald Trumps campaign manager, Kellyanne Conway, right, at Trump Tower in New York on Sunday.
PROFILE
Reince Priebus
Born: March 18, 1972
Education: University of Wisconsin-Whitewater, B.A.; University of Miami, J.D.
Political career: Ran for Wisconsin state Senate and lost,
2004; chairman, Wisconsin Republican Party, 2007-11; chairman, Republican National Committee, 2011 to present;
oversaw the post-2012 autopsy
of Republican Party weak-
PROFILE
Trump ties: Relationship developed during the campaign, providing a bridge to the GOP establishment; traveled to New
York in Sept. 2015 to urge Mr.
Trump not to run as an independent candidate and to sign
a pledge to support whoever
was nominated; opened doors
to GOP donors; gave Mr. Trump
access to party get-out-thevote machinery.
Stephen Bannon
Born: November 27, 1953
WASHINGTONStephen
Bannons role as senior counsel and chief strategist to
President-elect Donald Trump
will give him unfettered access
to the 45th president. His demeanor suggests he will likely
approach the role much differently than his predecessors.
Others who have held similar roles, such as David Axelrod for President Barack
Obama and Karl Rove for President George W. Bush, offered
advice on policy issues but
also served as media surrogates.
Mr. Bannon, however, rarely
speaks in public and is known
to be more comfortable as a
strategist and behind-thescenes political bomb-thrower
than public cheerleader.
The chief strategist is set to
become one of the White
Houses central figures in its
first year as Mr. Trump weighs
crucial decisions about which
pieces of legislation to pursue,
when to negotiate and when to
dig in with Congress. The chief
strategist also could serve as
an important conduit between
the White House and publicinterest groups.
Mr. Bannon joined Mr.
Trumps campaign in August,
and the two only worked
closely together during the
end of the campaign.
Mr. Rove had spent almost
three decades in Republican
politics by the time he helped
Mr. Bush win the White House
in 2000, a much different career arc than Mr. Bannon. But
Mr. Bannons path in many
ways mirrors Mr. Trumps, as
a provocative outsider.
The often undefined nature
of the senior counselor and
chief strategist job can be a
blessing and a curse. The job
will allow Mr. Bannon to weigh
in on virtually any decision
Mr. Trump seeks his advice
on, but could also open him up
to internal jostling if other advisersor family members
try to marginalize his input.
WSJ
CEO COUNCIL
Wall Street Journal editors
will discuss the impact of the
Trump administration with
policy makers and business
leaders at the WSJ CEO
Council annual meeting
Monday and Tuesday in
Washington, D.C. Scheduled to
appear Monday are former
New York Mayor Rudy Giuliani
and Trump campaign manager
Kellyanne Conway, both of
whom are on the presidentelects transition team.
Updates and video from the
conference will appear on
WSJ.com. You can follow
along on Twitter at
#wsjceocouncil
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PAID ADVERTISEMENT
PRESIDENT-ELECT TRUMP
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Robert A. McDonald
Secretary, Department of Veterans Affairs
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Secretary McDonald is correct our Veterans deserve the best medical services the Veterans Administration
(VA) can deliver. Providing our Veterans with Best in Class medical services, including outsourced
Compensation and Pension Medical Disability Examinations (MDEs), must be a priority for the VA.
The VA issued a $6.8 billion Solicitation for outsourced MDEs in late 2015. The model for this Solicitation had
never been attempted before. The contracts were scheduled to commence October 1, 2016; however, the
contract awards in March and September 2016 were protested by multiple contractors, forcing the contracts
to be placed on hold until at least January 2017. This delay could once again lead to an increased backlog in
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The Solicitation as drafted is irretrievably flawed. The proposed distribution of work between two competing
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fairly administer, especially when three of the five districts (60% of the contracts) were awarded to two
competitors owned by the same company. The contract awards in March 2016 contained multiple errors
according to the findings of the Government Accountability Office (GAO). Following the direction of the GAO,
the VA re-awarded contracts in September 2016, but these awards were likewise filled with errors, which
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* *****
DEMOCRATS
Trump Is Open to
Fence in Some Areas
Donald Trump said parts of
the wall he has pledged to build
on the U.S.-Mexico border could
be fencing.
Asked during an interview
with CBS if he would accept a
fence, as some lawmakers have
suggested, Mr. Trump appeared
to adjust his signature campaign
pledge to build a wall on the border. For certain areas I would,
but certain areas, a wall is more
appropriate, he said. Im very
good at this. Its called construction.
Mr. Trumps comment came
as he and his advisers faced
questions about whether his policy agenda would follow his campaign pledges.
Yuka Hayashi
CONGRESS
the 12, according to Sara Schiavoni, a professor at John Carroll University who studies judicial politics and selection.
Mr. Trump, who has promised to appoint judges in the
mold of the late Supreme Court
Justice Antonin Scalia, will enter office with at least 16 vacancies on the federal courts of
appeals, the last stop for the
vast majority of federal cases.
Many more could open during
his administration, as judges
consider whether to take a
form of semiretirement called
senior status.
Forty-eight federal appellate
judges became eligible for senior status during Mr. Obamas
two terms and could step down
from full-time work or resign
at any time, according to Russell Wheeler, a fellow at the
Brookings Institution who studies federal courts.
They dont have to, however.
Judicial appointments are for
life, and at least 25 full-time
appellate judges who plan to be
on the bench for the start of
Mr. Trumps presidency have
been eligible for senior status
holds them, tradition dictates
that the nomination languish.
Sen. Chuck Grassley (R.,
Iowa), chairman of the Senate
Judiciary Committee, will continue to honor the blue-slip
process, said Taylor Foy, a committee spokesman.
Democrats expect the tradition of deferring to home-state
senators on judicial nominees
to continue, and both parties
will use the vetting and hearing
process to ensure that qualified, mainstream, nonpartisan
judges are put on the bench, a
senior Democratic aide said.
Joe Palazzolo
Open Seats
Dozens of federal-court vacancies await Donald Trump and his White
House, including at least 17 on the federal courts of appeals, the last
stop for the vast majority of federal cases.
The regional circuits
1
2
3
7
10
D.C.
Circuit
11
5
Appointed by:
Vacant seat Republican Democrat
Second:
New York
Third:
Philadelphia
Fourth:
Richmond, Va.
Fifth: New
Orleans*
Sixth: Cincinnati
Seventh: Chicago
Ninth: San
Francisco
10th: Denver
11th: Atlanta
Washington, D.C.
Federal Circuit
Note: The Federal Circuit has nationwide jurisdiction to hear appeals in specialized cases.
*Includes one future vacancy Includes two future vacancies
Source: Administrative Ofce of the U.S. Courts
THE WALL STREET JOURNAL.
WASHINGTON
WIRE
U.S. WATCH
PENNSYLVANIA
SHINING MOMENT: A supermoona large, bright full moonrising over Manhattan on Sunday. The moon will be at its brightest
because it is coming closer to Earth than at any time since 1948. NASA says its nearest approach will be at 6:21 a.m. EST on Monday.
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Cyber resilience
Starts with
Mimecast.
MIME
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Neither Nasdaq, Inc. nor any of its afliates (collectively Nasdaq) makes any recommendation to buy or sell any security or any representation about the nancial condition of any
company. Investors should undertake their own due diligence and carefully evaluate companies before investing. 2016. Nasdaq, Inc. All Rights Reserved. Business.Nasdaq.com
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NY
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2016 Dow Jones & Co., Inc. All rights reserved. 6DJ3945
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WORLD NEWS
Will Work
With U.S.
BY MATTHEW DALTON
BY LAURENCE NORMAN
AND JULIAN E. BARNES
French President Franois Hollande laid a wreath at the site of one of the terror attacks that claimed 130 lives in Paris a year ago.
from national governments to
cooperate much more closely
than before through institutions such as Europol.
Governments have also deployed an EU border force and
security experts to Greece to
screen most of the refugees
arriving in the country.
When I look back, maybe a
year and a half ago, I would
not have said that we would
have done all this, said Gilles
de Kerchove, the EUs counterterrorism coordinator.
Still, acute problems arise
from the fact that among Europes handful of centralized
databases none are capable of
matching fingerprints, DNA
and other so-called biometric
data for law-enforcement or
counterterrorism purposes.
The regions most important police database, the
Schengen Information Sys-
France Remembers
tary
team
reviewing the Paris attacks.
European authorities are
rushing to give the Schengen
database the capability to
match fingerprints, a project
they hope to test next year
and have operational in 2018.
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* *
WORLD NEWS
Trumpism Takes
Other Hue in EU
EUROPE FILE
SIMON NIXON
President Obama, shown with adviser Valerie Jarrett at the White House on Friday, heads to Greece, Germany and Peru this week.
therefore most at risk of deflation, such as Italy and Portugal, are those with the least
fiscal space.
Success for populist parties is also likely to make it
even harder for governments
to deliver either growth-enhancing domestic overhauls
or build a consensus around
the overhauls to the governance of the euro area that
most economists say are vital to secure its long-term financial stability.
Indeed, the prospects for
deeper eurozone integration
appear to be receding as
governments have responded
to euroskeptic pressure by
putting new obstacles in the
way. For example, the Netherlands now has a law requiring the government to
hold a referendum on any
EU-related legislation if
300,000 voters demand it.
t the same time, the
eurozone faces a series of imminent challenges that could test its cohesion. There is no sign of
any resolution to the threeway standoff among Berlin,
Athens and the International
Monetary Fund over debt relief for Greece. Similarly,
Rome and Brussels are at
loggerheads over next years
Italian budget as well as the
application of EU rules that
may require bondholders in
some Italian banks to take
losses as part of recapitalization exercises. Policy makers
fear that governments may
simply decide to act unilaterally in breach of EU rules
rather than pay a domestic
price, thereby calling into
question the legal premise
upon which the ECB has
based its actions.
Even if the eurozone
dodges these shocks, policy
makers fear trouble if inflation picks up. The prospect of
higher inflation may ease
pressure on the Fed. But it
threatens to make the ECBs
life harder as it will have to
choose between stopping
quantitative easingrunning
the risk that borrowing costs
for the most indebted governments could rise sharplyor
tolerating above-target inflation, which could undermine
competitiveness and living
standards in Germany.
The reality is there are
some decisions the eurozone
cant duck for much longer
and which may have to be
confronted just as politicians
are least able to respond.
BY JUAN FORERO
BOGOTA, ColombiaPresident Juan Manuel Santos plans
to present a new peace pact
with the FARC rebel group to
Congress for ratification, bypassing voters who rejected an
earlier accord, people familiar
with the strategy said.
On Saturday night, Mr. Santos unveiled the deal, saying it
replaces an accord voters narrowly rejected on Oct. 2.
People who have talked to
the president and government
officials say the Santos administration sees Congress as the
best option to approve the pact
with the Revolutionary Armed
Forces of Colombia. He has majority support among lawmakers, and the countrys highest
court has ruled that Mr. Santos
doesnt have to call a plebiscite
to approve a new pact.
The most salient ratification
process now is, in fact, Congress, one of these people said.
Politically, though, the move
is a gamble for a president who
still needs to implement the
complex agreement. Colombian
society is sharply polarized between those who believe a ballots-for-bullets approach to
ending a 52-year conflict is the
best route and others who say
it is a sellout to a terror group.
The new deal includes revisions after FARC yielded on
some points.
Weve ceded, even extended the borders wed
drawn, to move to the limits of
what is reasonable and acceptable for a political-military organization that was not defeated, the chief of the FARC
negotiating team, Luciano
The family of a 15-year-old boy killed in a mortar attack in Mosul mourns his death.
cadavers of killed Islamic State
fighters lie on the ground.
In areas of eastern Mosul
cleared earlier, such as Samah,
troops hand out water bottles
and Styrofoam trays of rice and
beans to families.
When civilians come by we
are not allowed to treat them
rudely or shout at them. Were
giving them so much water and
food that we are running out
ourselves, said soldier Yahya
Majid, after disbursing bottled
water to a family in Samah.
In Arpachiya, a middle-class
neighborhood of pleasant twostory villas, clearing operations against Islamic State
concluded only on Saturday.
Most of Mr. Abu Ahmeds
neighbors got a clean shave on
Sunday, too. There has been
no freedom at all, nothing,
said one neighbor, Ismail Khalil.
Daesh was asking us for help
but nobody did that because we
all know that the security
forces are on the right side.
On Sunday morning, as Gen.
Saadi and Lt. Gen. Abdul Ghani
al Assadi, the overall commander of Iraqi Special Operations Forces, arrived to inspect
the battlefield, soldiers waved
from a rooftop an upside-down
black-and-white Islamic State
flag captured from militants.
Islamic States positions
weren't far away, just across
the road in the Bakr neighborhood. Within minutes of the
generals arrival the gunfire became so intense it was difficult
to hear a conversation. Shortly
thereafter, a car bomb went off
a mile or two away, sending a
cloud of smoke into the sky.
When the shooting died
down, Gen. Assadi strolled
down the street, greeting local
residents. I recognize you, I
have seen you on television,
beamed 70-year-old Abbas
Mohammed. We feel like it is
a holiday today.
You are our people and
our family, our sisters and
mothers, Gen. Assadi said,
and asked for help in tracking
down Islamic State militants
in the area: We want you to
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* * * *
WORLD NEWS
BY ALASTAIR GALE
Protesters calling for the resignation of President Park Geun-hye clashed with police at a demonstration
in Seoul on Saturday, as the country saw its largest antigovernment protests in decades.
SEOULThe popular rejection of the political establishment that drove the U.K.s
Brexit vote and Donald Trumps
victory in the U.S. presidential
election is being felt in South
Korea, where hundreds of thousands of people took to the
streets of Seoul over the weekend to call for the resignation
of President Park Geun-hye.
Ms. Park is being targeted
by protesters for appearing to
allow a close friend to influence government decision
making, even though no formal claims of wrongdoing
have been made against the
president. Prosecutors plan to
question Ms. Park early this
week, an official said, in what
DUMAI, IndonesiaLate
last month, a fire patrol here
was hard at work battling
small blazes on the dried-out
bogs that make eastern Sumatra island infamous as a major
source of Southeast Asias perennial, choking haze.
Members of the local fire
brigade and a soldier together
with young volunteers sucked
water from a nearby canal
with a hose. For about an
hour, they moved across the
scrubland, tackling flames that
popped up even before the
ones they were fighting were
extinguished. They had been
at it for weeks.
Even if we put the fire out
today, we have to go back tomorrow to make sure it is out
completely, said Rahmad,
who goes by one name, pointing to haze hanging above the
tree line as they prepared to
head back to base just outside
the coastal city of Dumai.
Their limited progress highlights the herculean task fac-
Dampening Effect
After two bad years, 2016 looks set to be among the lowest in the past
decade for re alerts in Indonesia, thanks largely to the wet weather.
Daily re alerts
5,000
4,000
3,000
2,000
1,000
0
2014
15
*Through Oct. 31
Source: World Resources Institute
16*
THE WALL STREET JOURNAL.
WORLD WATCH
MOLDOVA, BULGARIA
AFGHANISTAN
JAPAN
The U.S. Embassy in Afghanistan temporarily closed on Sunday in response to Taliban attacks that killed four people
inside a highly fortified U.S. military base north of Kabul and
seven in the vicinity of the German consulate in the northern
city of Mazar-e-Sharif.
A Taliban suicide bomber infiltrated security at Bagram Air
Field and detonated explosives
inside the base on Saturday, killing four Americans, including two
service members, Afghan and coalition officials said.
The U.S. Embassy said the
closure was a temporary precautionary measure. The attack
brought the number of Americans killed in Afghanistan over
the past month to eight.
Jessica Donati
FAREWELL: Mourners in Karachi, Pakistan, on Sunday at coffins of victims of a bomb blast Saturday.
TUCKER CARLSON
TONIGHT
Spirited Debate
# Powerful Opinion
WEEKNIGHTS
PM
ET
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IN DEPTH
Difficult choices
Pension officials and government leaders are left with vexing choices. As investors, they
have to stash away more than
they did before or pile into riskier bets in hedge funds, private
equity or commodities. Countries, states and cities must decide whether to reduce benefits
for existing workers, cut back
public services or raise taxes to
pay for the bulging obligations.
Interest rates have never
been so low, said Corien Wortmann-Kool, chairwoman of the
Netherlands-based Stichting
Pensioenfonds ABP, Europes
largest pension fund. It manages assets worth 381 billion,
or $414 billion. That has put
the whole system under pressure. Only about 40% of ABPs
2.8 million members are active
employees paying into the fund.
Pension funds around the
world pay benefits through a
combination of investment
gains and contributions from
employers and workers. To ensure enough is saved, plans
adopt long-term annual return
assumptions to project how
much of their costs will be paid
from earnings. They range from
as low as a government bond
yield in much of Europe and
Asia to 8% or more in the U.S.
The problem is that investment-grade bonds that once
churned out 7.5% a year are
now barely yielding anything.
Global pensions on average
have roughly 30% of their
money in bonds.
Low rates helped pull down
assets of the worlds 300 largest pension funds by $530 billion in 2015, the first decline
since the financial crisis, according to a recent Pensions &
Investments and Willis Towers
Watson report. Funding gaps
for the two biggest funds in Europe and the U.S. have bal-
In Japan, Negative
Rates Bring Pain for
Pension Fund
The Japanese government
has turned to its $1.3 trillion
Government Pension Investment
Fund for cash injections six of
the past seven years. That fund,
the largest of its kind in the
world, manages reserves for
Japans public-pension system
and seeks returns that outpace
inflation. The more it earns, the
more it can shore up the governments pension system.
In February, Japanese cen-
RATES
Costa Mesa has outsourced government services such as park maintenance to absorb higher payments to the public-pension plan.
come expensive, said Ms.
Wortmann-Kool, ABPs chairwoman.
That is tough to swallow for
Mr. van Leeuwen, the Amsterdam language teacher. Sitting
on a bench near one of the
citys historic canals, he fumed
over how he had paid the ABP
every month for decades for a
pension he now believes will be
less than he expected.
Japan is wrestling with the
same question of generational
inequality. Roughly one-quarter
of its 127 million residents are
now old enough to collect
a pension. More than one-third
will be by 2035.
The demographic shift
means contributions from active workers arent sufficient to
cover obligations to retirees.
The government has tried to alleviate that pressure. It decided
to gradually increase the minimum age to collect a pension to
65, to require greater contributions from workers and employers and to reduce payouts
to retirees.
A typical Japanese couple
who are both 65 would collect
today a monthly pension of
218,000 ($2,048). If they live
to their early 90s, those payouts, adjusted for inflation,
would drop 12% to 192,000.
Mr. Kobayashi, the former
Tokyo government worker, said
the governments effort to
boost returns by making riskier
investments was supposed to
The government-mandated
target is a 1.7% return above
wage growth. Wed like to strive
to accomplish that goal, said
Shinichiro Mori, a deputy director-general of the funds investment-strategy department.
The fund posted a loss of
3.8% for the year ended in
March because of the yens
surge and global economic uncertainty. It was its worst performance since the 2008 global financial crisis. Mr. Mori said
performance should be evaluated from a long-term perspective, citing returns of 40 trillion
since 2001.
Kosaku Narioka
Pension Pressure
Low interest rates have pulled down investment returns for government
pension funds, contributing to gaps between assets and liabilities at
funds in the Netherlands and California, and negative returns at the
fund that manages reserves for Japan's public-pension system.
Annual asset growth of world's top 300 pension funds
15%
10
5
0
5
10
Assets
Cutting costs
Calpers investment chief
Ted Eliopouloss strategy for
the era of lower returns is to
reduce costs and the complexity
in the funds $300 billion portfolio. He and the board decided
to pull out of hedge funds, shop
major chunks of Calpers realestate and forestry portfolios
and halve the number of external money managers by 2020.
Calpers isnt taking a passive approach to the anticipated
lower return rates, fund
spokeswoman said.
Yet the Sacramento-based
plan still has just 68% of the
money needed to meet future
retirement obligations. That
means cash-strapped cities and
counties that make annual payments to Calpers could be
forced to pay more.
That is a concern even for
cities such as affluent Costa
Mesa in Orange County. The
city has outsourced government
services such as park maintenance, street sweeping and the
jail, as a way to absorb higher
payments to Calpers. Pension
payments currently consume
about $20 million of the $100
million annual budget, but are
expected to rise to $40 million
in five years.
The outsourcing and other
moves eliminated one-quarter
13
14
15
ABP, Netherlands
$500 billion
$500 billion
400
400
300
300
200
200
100
100
0
08 09 10 11 12 13 14 15
GETTY IMAGES/ISTOCKPHOTO
A revival of Englands mole-catching craft has rival groups accusing one another of being impostors.
12
08 09 10 11 12 13 14 15 16*
MOLES
Continued from Page One
mole catcher listed on the Register. Disappointed with the
Registers training, she broke
away several years ago to help
form the rival Association of
Professional Mole Catchers.
Ms. Chapman says appreciative notes from students displayed on the Register website
testify to how good her classes
are. She says rivals including
the Association are copycats.
And some engage in mole-mafia-type behavior.
Perhaps the only point of
agreement between Ms. Chapman and Ms. Chippendale is
that a third organization purporting to represent U.K. mole
professionals, the Guild of Traditional Mole Catchers, has big
problems. It recently endured a
boardroom coup that its secretary, Martin Noble, declined to
discuss out of concern that his
integrity and the guilds are
being wrongly portrayed.
Some 31 million moles roam
the U.K., Oxford University zoology fellow Sandra Baker estimates. She says the worm-eating relatives of the shrew
arent all badtheir digging
boosts soil nutrients, and superstition says wearing a dead
mole around your neck cures
toothaches.
11
Liabilities
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To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
NY
* *
La Guardia Airport, near Flushing Bay in Queens, doesnt have an unusually high number of runway incidents, aviation analysts say, despite its shorter runways. A Southwest Boeing 737 after a skid in 2013.
GREATER NEW
YORK WATCH
HARLEM
Trumps Immigration
Policy Protested
Thousands protested against
President-elect Donald Trumps
immigration policies in New York
City on Sunday.
About 3,000 people gathered
in front of Trump International
Hotel & Tower in Columbus Circle
and marched to the Trump
Tower on Fifth Avenue. No arrests were made.
Natalia Aristizabal, an organizer of the demonstration, said
illegal immigrants deserve to be
treated as humans. Were not
intimidated by a wall, she said.
A spokeswoman for Donald
Trump didnt return a request for
comment.
Zolan Kanno-Youngs
challenging than others because theres less room for error on a shorter runway, said
Peter Goelz, an aviation consultant and former managing
director of the NTSB.
It always helps to add runway space, but La Guardia is
constrained, by bodies of water, and it is what it is.
This geographical constraint usually stymies proposed solutions to the runway
issue. Generating some discussion has been an unconventional proposal from architect Jim Venturi at
ReThink Studio that would
build a new, longer runway on
the 413-acre Rikers Island.
The idea would require the
city to close the jail.
Mr. Venturi said the Rikers
runway would improve safety,
reduce flight delays and allow
a broader array of aircraft to
get in and out of La Guardia.
In September, New York
Gov. Andrew Cuomo expressed
interest in the proposal.
La Guardia is fundamentally limited by runway
space, Mr. Cuomo said.
Thats why I was very intrigued by the idea of the city
selling Rikers Island, because
Rikers prison is an operational
problem, and using Rikers to
build another runway for La
Guardia, because were doing
everything we can with La
Guardia, but what you have is
what you have in terms of
runway space.
John F. Kennedy
Newark
Recommended
minimum:
6,000 ft.
Shortest:
7,001 ft.
Longest:
14,511 ft.
Shortest:
8,400 ft.
Shortest:
6,726 ft.
Longest:
7,003 ft.
Longest:
11,000 ft.
1 mile
1 mile
1 mile
BY MIKE VILENSKY
www.ebook3000.com
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NY
* *
kly
nB
rid
ge
ar
lS
t re
et
Br
oo
Pe
MANHATTAN
FD
DETAIL
RD
riv
t
Ful
on
eet
Str
Jo
St
e
re
t
re e
aid
hn
St
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La
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FD
RD
riv
East River
500 feet
The South Street Seaport neighborhood is adding younger residents. The Pier 17 Building, below.
a
W
r
te
Although brick-and-mortar
stores arent expected to go
away, the days of making a retail development click by landing two or three big anchors
are gone.
Instead, developers are focused on creating multistore
retailing communities that are
constantly reinventing themselves, said Mike Moriarty, a
partner in the retail practice of
A.T. Kearney, a global strategy
PROPERTY WATCH
MANHATTAN
EXPERIENCE
BROOKLYN AT ITS BEST
square feet.
Kaufman invested $35 million to
renovate the four 1920s buildings;
the improvements include technology upgrades, redesigned lobbies
and new elevators, said Kaufman
principal Grant Greenspan.
Next up is fully leasing 15 W.
27th St. and 45 W. 27th St.
Emily Nonko
BROOKLYN
LIVING THE
SUITE LIFE
Variety of Suite Locations,
Including Studio Suites,
Loft Suites and More.
CALL OR TEXT EVENTS TO 718.257.8483
barclayscenter.com/premiumseating
BY JOSEPH DE AVILA
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* * * *
LIFE&ARTS
SPORTS
Jason Gay
JASON SILVA/AGIF/AP
New York
The Ultimate
Fighting Championship finally thumped
into New York City
this weekend, late, bloody and
loud. The city was a holdout on
the global mixed-martial arts
phenomenon, owing to a nowoverturned state law prohibiting professional cage-fighting
as if that was ever frowned
upon in this brusque, elbow-toear town. If youve ever taken
the train at 8 a.m. on a Monday
around here, or waited in line
for one of those $7 almondmilk lattes, you know the truth:
New York City is a cage fight.
The headliner Saturday at
Madison Square Garden was
Conor McGregor, the 28-yearold Irish lightweight equipped
with a heavyweight tongue.
McGregor is one of a few stars
in this growing if polarizing
sport to cross over into the
mainstream, and he arrived in
New York with a boast of I run
this city and callouts to his
countrymens rugged roots here.
The Irish, we built this
town, he said. Now were
coming back to claim whats
ours. McGregor, who possesses
a tattoo across his chest of a
gorilla eating a heart (the tattoo looks like the worlds most
aggressive lobster bib), isnt
much for idle or humble talk,
but he was the perfect mouth
and antagonist in a city that
appreciates both.
After all, New York is a monument to self-regard like
McGregors. Forty-five years
ago, in this same arena, Norman
Mailer watched Joe Frazier beat
Muhammad Ali and was inspired to write a tribute to ego,
which he called the great word
of the 20th century. Everything we have done, Mailer
wrote, from monumental feats
to nightmares of human destruction, has been a function of
that extraordinary state of
psyche which gives us authority
to declare we are sure of ourselves when we are not.
Mailer, an immodest fighter
himself, would have probably
loved McGregors brash magnetism, plus the fact that hes
backed it up with his fists.
What makes McGregor a compelling fighter is how hes slid
up and down weight classes in
the UFC while maintaining a
dominant grip; hes the first
fighter to ever be a concurrent
champion in two separate
Please turn to page A14
A Brash
Champ
Worthy of
New York
Gerhard Richters Abstract Painting (809-2), now owned by Eric Clapton, is expected to fetch at least $18 million at Christies.
For the New York sales, Sothebys and Christies temper their expectationsbut also dangle
potential blockbusters such as a $45 million Monet and a $50 million Munch
BY KELLY CROW
If the art market could be
summed up in a painting, it would
be a still life. After several years
of surging growth, auction sales
slowed last year as wary collectors held onto more of their trophies rather than risk putting
them up for bid.
Sales continue to shrink, with
this weeks New York auctions offering one of the smallest batches
of works in recent seasons. Between now and Friday, Sothebys,
Christies and Phillips are expected
to sell around $1 billion in art,
down 57% from $2.3 billion at a
similar series of sales last November. Only Phillips, a boutique
house, projects it will sell more art
this week than last fall.
Necessity has compelled the
houses to get inventive with marketing to buyers spooked by global
economic uncertainty and sluggish
sales for newer art. In its Manhattan headquarters, Sothebys recreated the New York and Palm
FAMILY
KAGAN MCLEOD
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A Tribe Called Quest released its highly anticipated final album on Friday.
Phife Dawg, above, died in March. The groups other members: Q-Tip, top, Ali
Shaheed Muhammad, left, and Jarobi White, above left.
WILLEM
DE KOONING
NJIDEKA AKUNYILI
CROSBY
GERHARD RICHTER
This German painters market remains volatile, with some collectors clamoring for his
rainbow-hued squeegee abstracts from the
1980s, at least below $30 million, the houses
said. This season, Microsoft co-founder Paul
Allen will test demand for Richters figurative
work by asking $25 million for the artists
1963 Dsenjger (which means jetfighter)
at Phillips on Wednesday.
EDVARD MUNCH
In May 2008, collector Larissa Chertok paid Sothebys $30.8 million for the 1902 scene, Girls on
the Bridge. She hopes to sell it at Sothebys for
$50 million, a 62% price bump. Ms. Chertok is
likely to hit her target price since the house extended her a guarantee, but could this cheery
scene soar to Scream levels? Munchs most famous work fetched nearly $120 million in 2012.
K.C.
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TURKEY
TELEVISION
From top: Scenes from National Geographics new television series, Mars.
that approach the theatrical. Docs
are taking on new luster in the TV
business as streaming video companies pour resources into the format, hunting for binge-worthy stories such as Netflixs true-crime
series, Making a Murderer.
History on Monday is expected
to announce an eight-hour series
produced by Leonardo DiCaprio
called Frontiersmen, about pioneers including Daniel Boone, Tecumseh and Lewis and Clark. A&E
is using the name recognition of
Oscar winner Alex Gibney to promote a new documentary series he
executive produced, The Killing
Season, which investigates an unsolved serial-killer case on Long
Island. Discovery recently aired a
horrormentary directed by Morgan Spurlock called Rats, which
premiered at the Toronto International Film Festival in September.
To create the event-level docs
Weather
Series marks the rise of premium nonfiction and relaunches National Geographic brand
20s
d
t
Edmonton
40s
V
Vancouver
0s
30s
50s
10s
Winnipeg
ip
Seattle
20s
40s
Portland
P
d
l
Helena
Eugene
<0
Calgary
Calga
ary
60s
Billings
Boise
i
Montreal
40s
Bismarckk
ttawa
Ottawa
T
t
Toronto
A
b y
Albany
Mpls./St.. Paul
Pau
40s
Augusta
A
g t
70s
U.S. Forecasts
City
Omaha
Orlando
Philadelphia
Phoenix
Pittsburgh
Portland, Maine
Portland, Ore.
Sacramento
St. Louis
Salt Lake City
San Francisco
Santa Fe
Seattle
Sioux Falls
Wash., D.C.
International
City
Amsterdam
Athens
Baghdad
Bangkok
Beijing
Berlin
Brussels
Buenos Aires
Dubai
Dublin
Edinburgh
Hi
45
66
87
95
55
36
45
87
90
59
59
Today
Lo W
44 r
53 pc
55 s
77 pc
25 s
31 pc
42 pc
65 pc
73 s
52 sh
48 sh
Tomorrow
Hi Lo W
56 48 sh
60 51 pc
85 52 pc
95 76 pc
48 32 s
41 40 r
54 51 c
84 57 pc
87 71 s
54 44 sh
54 45 c
City
Frankfurt
Geneva
Havana
Hong Kong
Istanbul
Jakarta
Jerusalem
Johannesburg
London
Madrid
Manila
Melbourne
Mexico City
Milan
Moscow
Mumbai
Paris
Rio de Janeiro
Riyadh
Rome
San Juan
Seoul
Shanghai
Singapore
Sydney
Taipei
Tokyo
Toronto
Vancouver
Warsaw
Zurich
Today
Hi Lo W
38 29 pc
46 31 s
85 60 pc
81 71 pc
53 45 s
88 78 t
74 59 pc
76 55 t
55 52 c
59 35 s
91 78 r
58 50 pc
72 55 pc
48 36 pc
26 20 c
93 76 pc
47 42 pc
78 72 r
85 51 s
59 43 r
87 78 pc
63 36 sh
67 53 c
87 77 c
72 59 pc
86 72 s
65 58 r
55 38 pc
54 43 c
39 26 c
38 29 s
20
24
10
15
21
22
25
32
29
30
50
51
23
34
37
35
38
39
41
43
12
16
28
33
40
11
26
36
42
44
45
47
52
19
27
31
14
60s
Tomorrow
Hi Lo W
41 39 sh
45 36 s
81 63 sh
81 73 s
50 42 c
88 76 sh
70 55 s
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59 50 sh
58 34 s
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48 34 s
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www.ebook3000.com
Down
1 Flat-bottomed
boats
2 Pop singer
Goulding
3 Combat doctor
4 Annoy
5 Winter Olympics
group
6 Angels With
Dirty Faces star
7 Gymnast Korbut
8 The Everly
Brothers, e.g.
9 Flows forth
10 Hot and cold,
for example
11 Cheese in a
Greek salad
12 Fairway hazard
15 Energyconserving
mammals
18 Phooey!
23 That lady
25 Marsh plant
26 Formerly
28 Western, in slang
29 Use four-letter
words
30 Online auction
site
31 Hulu choice
32 Top-notch
33 Anchors
top-of-thebroadcast
offering
37 Cutting edge
38 Bacchanalian
revelry
39 Physics quantity
41 Galoot
42 Hockey players,
e.g.
44 Forest female
45 More furious
46 Have a snack
49 Goading remark
50 Pageant host
51 Floodpreventing
embankments
52 Courage
53 Pronto, in
memos
54 Happy
Motoring brand
58 ___ Paulo, Brazil
59 Casserole bit
O
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A
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* ****
SPORTS
Heard On
The Field
AL BELLO/GETTY IMAGES
BY DOUGLAS BELKIN
The College of Idaho is one of 86 colleges and universities to start new football teams in the past decade.
dents Debbie Heida.
The teams first game drew 6,700
fans and sold out the stadium. The
student body grew to 2,141 from
1,928 three years earlier. Of the 213
additional students, 179 were men.
Mens lacrosse and soccer are both
growing at significant clips, but so
are the womens teams in those
sports so the effect on the gender imbalance isnt as strong.
And while football programs can
lead to losses of tens of millions of
dollars for some major programs,
only 12 of the 86 schools to start
teams in the last decade are at Division I universities.
The rest are at smaller schools
where athletic scholarships are generally small or prohibited and training facilities and stadiums are less
than palatial.
At College of Idaho, the push to
create a football team got off to a
bumpy start. It was twice raisedand
twice shot down before Henberg
started a campaign to persuade faculty it was the answer to the schools
anemic enrollment.
Many on campus worried that the
caricature of a football team populated by meatheads would hurt the
schools self-image as a progressive,
intellectual enclave.
There was a fear that youd have
100 physically imposing guys off to
themselves and theyd get rough,
said Lynda Danielson, a math professor who also attended College of
Idaho as a student. We were afraid
they would upset the balance here.
Henberg encouraged the faculty to
call their counterparts at schools
which had already started programs.
They signed on. The school sunk $6
million into the program, including a
new weight room, and signed an
agreement with the city of Campbell
to rebuild a municipal stadium.
Mike Moroski, a former pro quarterback hired to coach, had no trouble recruiting playerseven though
his scholarship budget was about
$3,500 a player. I told them they
had a chance to build the program
from the ground up, he said
ADAM HUNGER/REUTERS
The
Cheeky
Champ
McGregor made it look easy on Saturday night, knocking down Eddie Alvarez five times in two rounds.
ability to make fights that fans
want to see, with less of the inertia
and nonsense that have driven boxing into the ground.
White thought he had minted
the UFCs Michael Jordan with the
groundbreaking female fighter
Ronda Rousey, but Rousey lost a
stunner a year ago and hasnt
fought since. In McGregor, White
has a superstar who, like him, cant
sit still, and craves to give the people what they want. Saturday was
McGregors fourth fight in 11
months, which includes a loss and a
revenge win against the fighter
Nate Diaz. McGregors prior three
fights were sensations on Pay-PerView television, and it is assumed
the fourth will be as well; the gate
at the sold-out Garden was $17.7
million, said to be a record.
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OPINION
Among the Trump Protesters
By Adam ONeal
housands of anti-Trump
protesters marched up
New Yorks Fifth Avenue
on Saturday afternoon, completing a two-mile journey
from Union Square to Trump
Tower. The march followed
days of similar rallies in Los
Angeles, Portland, Chicago
and elsewhere. Donald Trump
has tweeted that he loves the
demonstrators passion, while
accusing many of being professional protesters.
But why protest at all, given
the unambiguous results of
Tuesdays election? The demonstrators signs offered a few
clues. The F word was everpresent: as in F---take your
pickTrump, Giuliani, the police, family values, that guy,
the electoral system, Newt, Arpaio, Trumps Amerikkka, and
even you. One woman carried a sign pledging that she
would pay taxes only when Mr.
Trump does. Other placards
derided Adolf Trump and the
new groper in chief, warning
tiny hands off.
Enlightened college students carried apologetic messages: Sorry for the inconvenience, were trying to change
the world or Im sorry my
country is racist. And Not
my president, was a fan favorite, though many went
with Never my president.
Other slogans didnt really
add up, such as You cant
drink oil or one calling for
Vice President-elect Mike
Pence to be thrown over a
fence.
It was difficult to find a
unifying theme, since there
The Colombian
presidents deal with
FARC terrorists, six
years in the making,
is fixed in six weeks.
This crime in Colombia
does not exist in U.S. law. A
key witness also admitted during the trial that the whole
thing had been a set up to
destroy Mr. Ariass political
career. Mr. Arias had only one
shot to prove his innocence at
the high court. There is no appeal process. So he fled to the
U.S. in June 2014 and applied
for asylum.
On Aug. 24 U.S. federal
marshals took him into custody on Mr. Santoss extradition request. The timing of the
Miami arrestthe same day
Mr. Santos announced his deal
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Imagining a Good
Islamic State
Caliphate: The History of an Idea
By Hugh Kennedy
(Basic, 309 pages, $27.99)
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OPINION
onald Trumps success as President will Obama family friend Valerie Jarrett.
depend on whether he can merge his
Mr. Trump has sometimes set up competing
populist instincts with the reform forces within the Trump Organization, as he did
agenda of Republicans in Conwith his Atlantic City casinos.
Priebus and Bannon
gress to form a united and efThis arrangement can succeed
fective government. His
Messrs. Priebus and Bannon
will be equal partners. ifdivide
choices for his most senior
responsibilities cooperThis will be interesting. atively, but it will lead to a
White House aides suggest
those two tendencies will commess of leaking dysfunction if
pete in his Administration the
they divide into competing
way they did during the campaign.
factions. Someone will have to be the final word
Mr. Trump offered something for both camps on who gets to see the President and which isSunday with his announcement that Reince sues require a presidential decision.
Priebus will be his chief of staff while Stephen
The two men certainly come with different
Bannon will be chief strategist and senior coun- instincts and constituencies. Mr. Priebus is an
selor. Mr. Priebus is the head of the Republican establishment operative who built the WisconNational Committee who stuck with Mr. Trump sin GOP into one of the countrys most effective
despite the many valleys of the campaign and state parties. He has close ties to House
provided the get-out-the-vote operation that Speaker Paul Ryan and Republicans across the
Mr. Trump lacked. Mr. Bannon is a former Gold- country. He brings knowledge about how Washman Sachs banker, Naval officer and Breitbart ington works that is essential if Mr. Trump is
News executive who joined the campaign with going to move fast to take advantage of whatKellyanne Conway in August amid one of those ever honeymoon he will get.
valleys.
Mr. Bannon represents the insurgent forces
Its hard to know whether this is will be a that helped propel Mr. Trump to the GOP nomisublime union of yin and yang or Survivor: nation. His Breitbart website essentially beTrump White House. Typically the chief of came an arm of the Trump campaign and tarstaff runs the White House and is the Presi- geted other Republicans for attack, often
dents most trusted adviser. But its notable inventing facts along the way. Mr. Ryan has
that the announcement from the Trump transi- been a frequent target. The sites main policy
tion established no clear hierarchy between the preoccupations are hostility to trade and immitwo men. The transition statement said that gration, views that Mr. Bannon will presumably
Bannon and Priebus will continue the effective bring to White House debates.
leadership team they formed during the camA Washington clich is that personnel is polpaign, working as equal partners to transform icy, and that may be more true for Mr. Trump
the federal government, making it much more than for most Presidents because his campaign
efficient, effective and productive.
agenda was relatively general and narrow. Mr.
Equal partners? Rarely does any organiza- Trump assured Americans that he could run
tion run well if there are dueling heads, and one the government because he had succeeded in
reason the Obama Presidency suffered is that business, and voters gave him the benefit of the
his early chiefs of staff were undermined by the doubt. Well see how these competing White
competing influence of White House aide and House forces shake out.
n his eulogy recently for Israeli statesman Mr. Graham (R., S.C.) says. Were not going to
Shimon Peres, President Obama spoke of the invest in a group of people that have laws like
unfinished business of Israeli-Palestinian this. Its just not a good investment. The same
peace. Now he or Donald
Palestinian laws guarantee
Palestinian law rewards civil-service employment to
Trump have an opportunity to
advance the causeby backing
terrorists upon their release
those who kill Jews,
legislation to stop the flow of
from prisonthe bloodier their
including Americans. crime, the cushier their post.If
U.S. tax dollars to Palestinian
terrorists.
youre in jail for five to six
Since the 1990s, as the U.S.
years, you come out with the ciand other countries have sent billions of dollars vilian rank of department head or lieutenant in
in aid to the Palestinians, Palestinian leaders have their security forces, you get to choose. If youre
paid hundreds of millions of dollars in rewards in jail 25 to 30 years, you become a deputy ministo those who carry out bombings, stabbings and ter or a major general, Mr. Graham adds.
other attacks in Israel. These payments, codified
Mr. Coats (R., Ind.) notes that Congress tried
in Palestinian law, are an official incentive pro- to stop subsidizing terror payments in 2014, but
gram for murder that in any other context would Palestinian leaders dodged that law with a shell
be recognized as state sponsorship of terror. But game that passed payments through the Palesthe U.S. and other Western states have looked the tine Liberation Organization, which technically
other way while continuing to send aid, giving isnt a recipient of U.S. aid. When lawmakers
Palestinian leaders no incentive to stop.
raised this with the State Department they got
Senators Lindsey Graham, Dan Coats and Roy only a tepid response, says Mr. Coats. One
Blunt have introduced a bill to end U.S. economic State Department report praised the payments
aid unless Palestinian leaders stop rewarding ter- as an effort to reintegrate released prisoners
rorists. Its called the Taylor Force Act, after the into society.
28-year-old U.S. Army veteran stabbed to death
The truth is these payments are blood-soaked
in March by a Palestinian in the Israeli city of gifts from a Palestinian leadership still devoted
Jaffa. Other American victims of recent Palestin- more to destroying Israel than to building a Palian terrorism include 13-year-old Hallel Yaffa Ar- estinian state. This has always been the chief imiel and 18-year-old Ezra Schwartz.
pediment to peace. Mr. Obama is unlikely to act
They will never achieve peace when you pay in his final days, but the Trump Administration
one of your young men to kill someone like Taylor and new Congress could send a powerful mesForce. Thats inconsistent and it needs to stop, sage by passing the Taylor Force Act.
arry Reid has done as much as anyone ing all he has done to help them. By killing the
to pave the way for Donald Trumps filibuster for nominees, he has made it easier
victory by promoting Washington dys- for Mr. Trump to get his nominees confirmed
function, so its no surprise
and fill Antonin Scalias seat
that he has reacted to the elec- Trump should revive the on the Supreme Court. By
tion result by proving the
stretching the rules for budget
nuclear repository at
point one more time.
reconciliation, he has set a
Yucca Mt. in Nevada. precedent for Republicans to
The
soon-to-be-former
Democratic Senate leader isrepeal much of ObamaCare by
sued a statement Friday that
ducking a filibuster.
showed his contempt for anyone who voted for
And by blocking vote after vote as Senate
Mr. Trump. I have personally been on the bal- Majority Leader, Mr. Reid made it impossible
lot in Nevada for 26 elections and I have never for Democrats in swing states to differentiate
seen anything like the reaction to the election themselves from President Obama and paved
completed last Tuesday. The election of Donald the way for a GOP Senate in 2014. A Republican
Trump has emboldened the forces of hate and Congress can now go far to repealing much of
bigotry in America, he said.
Mr. Obamas legacy.
White nationalists, Vladimir Putin and ISIS
Oh, and we hope the Trump Administration
are celebrating Donald Trumps victory, while in- takes another look at the nuclear-waste reposinocent, law-abiding Americans are wracked with tory at Yucca Mountain in Nevada. In an underfearespecially African Americans, Hispanic reported political bargain, Mr. Reid promised
Americans, Muslim Americans, LGBT Americans Mr. Obama that he would do the Presidents
and Asian Americans. Watching white national- dirty work on Capitol Hill if the President
ists celebrate while innocent Americans cry blocked the Yucca project. Mr. Obama named
tears of fear does not feel like America.
Reid aide Gregory Jaczko as chairman of the
Crazy Harry went downhill from there, and Nuclear Regulatory Commission in 2009, and
Democratic Senator Joe Manchin of West Vir- a year later Mr. Jaczko shut it down.
ginia was appalled enough to issue a public reMr. Jaczko later resigned after the four other
buke: Senator Harry Reids statement today commissioners, Democrat and Republican, deattacking President-elect Trump is wrong! It is nounced his abusive management style. A pair
an absolute embarrassment to the Senate as an of D.C. Circuit Court of Appeals rulings have
institution, our Democratic party, and the na- since rebuked the Administration for violating
tion. I want to be very clear, he does not speak the law in relation to Yucca, and in 2014 a govfor me.
ernment study found that the Yucca design for
As difficult as it is for anyone to lose an waste is environmentally safe. The U.S. still
election, the American people have spoken and needs a solution for nuclear waste that is piling
Donald Trump is our President-elect. Senator up at sites around the country.
Reids words needlessly feed the very divisiveMr. Trump owes no political debt to Nevada,
ness that is tearing this country apart. Now, which due to Mr. Reids efforts voted last week
more than ever, it is time for us all to come to- for Hillary Clinton and defeated the GOPs Senate
gether as Americans.
candidate. Reviving Yucca would be a sign the
Mr. Reid will be gone with the current Con- Senate is moving past Mr. Reids era of dishonest
gress but Republicans may miss him consider- political manipulation and partisan rancor.
Pepper ...
And Salt
THE WALL STREET JOURNAL
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OPINION
By Tevi Troy
And Lanhee J. Chen
GETTY IMAGES
House Speaker Paul Ryan before signing a bill to repeal the Affordable Care
Act, Jan. 7.
other tax benefit to help lower-income Americans afford health insurance.
In preparation for the Supreme
Courts King v. Burwell decision last
year on subsidies via state run exchanges, the GOP sought technical
guidance from health experts on
how to transition to a post-ObamaCare world. This was key to ensuring that Americans who had gained
coverage through the laws marketplace subsidies werent displaced
from their plans. This effort, too,
was dismissed as presumptuous and
unnecessary. But with the election
of unified Republican leadership in
Washington, we can see that it was
neither of those things.
There was a logical and sequential aspect to these efforts. First,
the GOP demonstrated that it opposed the Affordable Care Act, a law
that last Tuesdays exit polls
showed 45% of all voters and 80% of
You might wonder: What happened? But theres a better question: What didnt happen?
The days before the election
were rife with uncertainty. There
were fears of terrorist attacks, a
contested election, violence in the
streets, a breakdown of society
what you might call the end of
America. (We exaggerate, but have
you seen what disappointed voters
are posting on Facebook and Twitter?) These fearswarranted or
notwere amplified by journalists
who struggled to maintain objectivity. Then they bounced around the
echo chamber of social media.
By and large, none of these fears
materialized. Mr. Trump gave a
conventional victory speech. It was
matched by Hillary Clintons
equally uneventful concession
speech. The election is not contested. America has a new president and is on a path toward another peaceful transition of power.
Stock prices reflect millions of
individual decisions, so we need to
be cautious in attributing intentions to markets. But in the days
after the election, investors seemed
to be reacting to the stability of
Americas democratic institutions.
difference is that the recovery after Mr. Trumps victory was nearly
instantaneous.
There is still significant uncertainty about what President Trump
will do, how Brexit will be resolved,
and a host of other geopolitical issues. Investors would be wise to
expect continued volatility in financial markets. And if Mr. Trump
makes good on many of his economic and foreign policy promises,
the markets could reverse course.
But the financial lesson from last
week is that the clarity of electionshaving a decisive winner and
a gracious losermay matter
nearly as much as, and in some
cases more than, the outcome.
This was an exhausting campaign. But those who worry about
the countrys future should take
solace in the way markets responded to an unexpected Trump
victory. Americas political system
is more resilient than many experts
would have us believe.
Mr. Primo is an associate professor of political science and business
administration at the University of
Rochester, where Mr. Dang is a
Ph.D. candidate in political science.
pontaneously
combusting
smartphones may be in the
news, but the danger not being
reported is the one caused by the
minerals inside these devices. Conflict minerals have fostered violence
where theyre mined in central Africa, and the U.S. response has made
the situation worse.
In the Democratic Republic of the
Congo, where the average resident
lives on about $400 a year, mining
is the most lucrative game around.
The value of the Congos mineral reserves is estimated at $24 trillion,
according to the United Nations Environmental Program, most of them
dug by informal miners working
with picks and shovels. But in a nation that has been crushed by civil
war on and off for two decades,
much of the mining sector is now
controlled by militias that have
Robert Thomson
Chief Executive Officer, News Corp
Gerard Baker
Editor in Chief
William Lewis
Chief Executive Officer and Publisher
www.ebook3000.com
documented immigrants?
Trump: What we are going to do
is get the people that are criminal
and have criminal records, gang
members, drug dealers, we have a
lot of these people, probably two
million, it could be even three million, we are getting them out of
our country or we are going to incarcerate. But were getting them
out of our country, theyre here illegally. After the border is secured
and after everything gets normalized, were going to make a determination on the people that youre
talking about, who are terrific
people, theyre terrific people, but
we are gonna make a determination at that point.
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Introducing
Microsoft Dynamics 365
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
* * * *
S&P IT 1.41%
DJ TRANS 6.24%
Bangladesh
Recovers
Portion of
Stolen Cash
BY SYED ZAIN AL-MAHMOOD
DHAKA, BangladeshPhilippine authorities returned $15
million of $81 million stolen
from Bangladeshs account at
the Federal Reserve Bank of
New York in a February cyberheist, the first time the South
Asian country has been able to
retrieve any of the stolen
money.
Abu Hena Mohammad Razee
Hassan, deputy governor of
Bangladeshs central bank, said
the cash was delivered to the
Bangladeshi Embassy in Manila
by officials of the Philippine
central bank and the countrys
Anti-Money Laundering Council.
$15M
according to MortgageNewsDaily.com.
Mortgage rates are still incredibly low by historical standards; the average over the
past 45 years is 8.26%, according to data from Freddie Mac.
But the quick rise in the 10year Treasury yield has lenders worried mortgages could
become more expensive far
sooner than they had anticipated.
Depending on how far that
runs, higher rates could arrest
further gains in home prices.
Sumners Branches
Sumner Redstones grandchildren will be the ultimate beneciaries of his controlling
stakes in Viacom and CBS, and are taking a more active role in the family business.
All ve cousins, and any of their children, will be the beneciaries of the trust once it goes into effect.
Tyler Korff
Brandon Korff
Real estate
developer
Kimberlee Korff
Ostheimer
ferrying
boxes full of
silicon wafers from
one station
to the next.
Every detail
KEYWORDS
of the facCHRISTOPHER tory is meaMIMS
sured by
sensors
pouring
data into a centralized repository where it can be processed to optimize production. The only humans present
are there to fix the machines
doing all the work.
But that means there is
Lawyer
Keryn Redstone
Lawyer
Shes been at odds
with her aunt and
recently secured a
settlement ensuring
equitable trust
disbursements.
Lauren
Redstone Ellis
Health policy
researcher
Brent Redstone
Brent was bought out of
the family business in
2006 amid litigation.
Shari Redstone
NATIONAL AMUSEMENTS
Shari
owns
Sumner
owns
20%
80%
CBS
VIACOM
Painkiller
Gets Pass
In Study,
But Results
Questioned
BY RON WINSLOW
INSIDE
National Amusements
owns a roughly 80% of
voting share for both.
Sumner Redstone
Sumner marries
Phyllis Raphael.
eres a paradox of
Americas highly automated, increasingly labor-independent manufacturing: While sophisticated, for
the most part, it isnt all that
high-tech. Picture metalstamping machines in an
auto-parts factory that can
easily have a long useful life
of up to 40 years.
Now picture the assembly
line just outside Austin, Texas,
where Samsung Electronics
Co. makes core chips for Apple Inc.s iPhones. I toured the
facility last summer. It is a
pristine white environment
filled with WALL-E-like robots
ALASKAS BET
ON HOUSING
PAYS OFF
BANKING & FINANCE, B7
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nor do they have any liability in relation thereto, including for any errors, omissions, or interruptions of any index.
ALPS Distributors, Inc. is distributor for SPDR S&P 500 ETF Trust, a unit investment trust. ALPS Distributors, Inc. is not
afliated with State Street Global Markets, LLC.
Before investing, consider the funds investment objectives, risks, charges and expenses. To obtain a prospectus
or summary prospectus, which contains this and other information, call 1.866.787.2257 or visit www.spdrs.com.
Read it carefully.
IBG-19394
GE has been a major proponent of the industrial internet. Above, a Texas GE diesel-locomotive facility.
www.ebook3000.com
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* * * *
BUSINESS NEWS
New Probe
At Audi
The coming weeks will feature big new showcases for the
humble electric-vehicle.
Auto makers, rushing to
meet tightening emissions
standards, will be unveiling
new battery-powered vehicles
at the Los Angeles Auto Show
this week, mirroring last
months flood of such cars by
European companies. These
curtain-raisers will be followed
by first shipments of General
Motors Co.s Chevrolet Bolt, a
$35,000 Tesla fighter that goes
on sale next month.
Whats missing are consumers, however. Auto makers are
suffering from a glut of U.S.
sedan and coupe inventory
amid strong demand for lighttrucks. The coming addition of
electric-vehicle capacity could
expand that oversupply.
Globally, sales of plug-in
electric cars are up in 2016,
driven by Chinese customers
taking advantage of aggressive
tax rebates and other incentives. But total volumes remain
less than 1% of the 83 million
light-vehicles likely to be sold
this year.
Tesla Motors Inc.s pricey
electrics aside, cars such as Nissan Motor Co.s Leaf and BMW
AGs i3 havent widely caught
on, and many auto makers say
it is unclear when demand for
electric vehicles will rise.
That is sobering news for
executives hoping they will
help meet tougher emissions
standards. China, Europe and
the U.S. have established regulations prodding development
of electric cars. Whether tax
incentives and extensive efforts to lower battery costs
can spur demand in the short
term isnt a sure bet.
Moodys Investors Service
BY WILLIAM BOSTON
MARK BLINCH/REUTERS
BY WILLIAM BOSTON
AND JOHN D. STOLL
A Chevrolet Bolt EV electric vehicle. Moodys Investors Service predicts 19 new electric models will go on sale in the U.S. by 2020.
predicts 19 new electric models will go on sale in the U.S.
alone by 2020, potentially tripling what is currently available.
Auto makers presenting in
California this week, including
Tata Motors Ltd.s Jaguar and
Hyundai Motor Co., are expected to give updates as to
how they will compete in this
electrification
race.
Fiat
Chrysler Automobiles NV will
show off a plug-in version of
its popular Pacifica minivan for
the first time just before the
Los Angeles Auto Show opens.
European auto makers have
become more optimistic about
electrics in the wake of Volkswagen AGs emissions-cheating scandal, which tarnished
diesels image as a green alternative to gasoline.
Volkswagen and MercedesBenz parent Daimler AG,
which combined sell 13 million
vehicles a year, predict electrics will account for between
15% and 30% of all vehicle
sales by 2025.
Not everyone is as bullish.
At the Paris auto show, for
instance, BMW AG sales chief
1.0%
First half
500,000
0.8
400,000
0.6
300,000
0.4
200,000
0.2
100,000
0
2011 12 13 14 15 16
2011
12
13
14
15
16
BY REBECCA SMITH
Donald Trump campaigned
on a promise to resurrect the
ailing U.S. coal industry and
put miners back to work. Delivering on that vow could
prove nearly impossible.
Electric utilities that buy
more than 95% of the coal
mined in America have already
retired hundreds of their coalburning power plants from
Colorado to Connecticut
amounting to about a third of
the total capacityand have
plans to mothball even more.
While in Appalachia earlier
this year, Mr. Trump pledged
to bring the coal industry
back, 100% by rolling back
environmental regulations. But
coals biggest problem is that
it is no longer the cheapest
fossil fuel around. It is being
displaced by natural gas.
American Electric Power
Co. of Columbus, Ohio, one of
the nations biggest utility
companies, has sold or retired
BERLINVolkswagen AG
and its Audi AG luxury unit on
Saturday confirmed that U.S.
and European investigators are
looking into fresh irregularities
related to levels of carbon-dioxide emissions in certain Audi automatic-transmission vehicles.
Volkswagen said it was in
talks with U.S. and European
regulators over the new issue,
which has emerged as a fresh investigative strand in its yearlong
diesel-engine emission scandal.
The vehicles now in question are both gasoline- and
diesel-powered.
The initial VW probe, news
of which broke last year, centered on software Volkswagen
admits to having installed to
mask a different sort of emission, nitrogen oxide, in many
of its diesel-powered cars.
Investigators are now looking into whether the way Audi
engineered some of its automatic transmissions was aimed
The transmission in
question was widely
used in Audis top
sedans and sportutility vehicles.
at reducing carbon-dioxide
emissions during lab tests but
allowing higher emissions during normal road use, Volkswagen and Audi confirmed.
The transmission in question
was widely used in Audis top
sedans and sport-utility vehicles.
Audi engineered the automatic
transmissions to run at very low
revolutions per minute during
treadmill tests to pass emissions
tests, but then to run at full performance on the road, resulting
in higher greenhouse-gas emissions, according to a person familiar with the situation and an
internal Audi document reviewed
by The Wall Street Journal.
The discovery of the use of
so-called defeat devices related
to carbon-dioxide emissions was
previously reported in a frontpage article in the Journal, but
neither Volkswagen, Audi nor
U.S. officials had commented on
the issue until now.
Audi disabled the test-recognition system shortly before
Volkswagen admitted to cheating on diesel emissions in
2015, according to the person
familiar with the situation.
The new revelation comes after Volkswagen has been in negotiations with U.S. environmental authorities and the Justice
Department for a year to settle
allegations of fraud and environmental violations after using defeat devices to cheat on dieselengine testing for a decade.
VW last year admitted to installing the emissions-cheating
software on nearly 11 million
diesel vehicles world-wide. The
company agreed in June to a
$14.7 billion settlement with the
U.S. environmental authorities,
state authorities and owners of
475,000 two-liter diesel vehicles
affected in the U.S.
MONSANTO
BY JACOB BUNGE
1.25%
APY1
$2,000
minimum
opening
deposit
Annual Percentage Yield (APY) is accurate as of 11/1/16 and subject to change at any time without notice. A
minimum of $2,000 is required to open a CD and must be deposited in a single transaction. A penalty may be
imposed for early withdrawals. Fees may reduce earnings. After maturity, if you choose to roll over your CD, you
will earn the base rate of interest in effect at that time. Visit synchronybank.com for current rates, terms and
account requirements. Offer applies to personal accounts only.
2
National Average APYs based on specific product types of top 50 U.S. banks (ranked by total deposits) provided
by Informa Research Services, Inc. as of 10/1/16. CD Rates: Average APYs are based on certificate of deposit
accounts of $25,000. Although the information provided by Informa Research Services, Inc. has been obtained
from the various institutions, accuracy cannot be guaranteed.
2016 Synchrony Bank
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TECHNOLOGY
WSJ.com/Tech
BY RACHAEL KING
Teams announcement.
Slack has been bracing for
the assault. It signed a partnership last month with International Business Machines
Corp., to use its Watson artificial-intelligence services.
The growing battle reflects
more than excitement over the
prospect of a more efficient
alternative email. Tech companies envision messaging as a
gateway to other business
software from other vendors.
For instance, a worker
could type in the chat box to
book vacation days in a human
resources program or enter a
transaction in an expense reporting program. The company that provides that interface could wield extraordinary
power in the enterprise software market.
Slack already lets users
beef up messages with information from partnerstweets
from Twitter Inc. or customer
information from Salesforce.com Inc.and add comments to files and share them.
The messaging service of-
Mark Zuckerberg says less than 1% of the Facebooks world-wide content could be classified as fake.
BY LI YUAN
HONG KONGFor six years,
Chinese billionaire Jia Yueting
shrugged off skeptics as he
pursued his vision of a business that could challenge Apple Inc., Netflix Inc., Amazon.com and Tesla Motors
Inc. all at once.
The founder of LeEco Holdings appeared to defy gravity
as he built a second-tier video
site into a conglomerate spanning smartphones, televisions,
electric cars, cloud computing
and a film studio, capped off in
Legal Notices
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Stewart
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says theres
room for more
than one
provider.
ASSOCIATED PRESS
BY DEEPA SEETHARAMAN
While manufacturing
is sophisticated, for
the most part, it
actually isnt all
that high-tech.
Candidly, one of the
things we work on is how we
can get our legacy equipment
connected, says Karen Kerr,
senior managing director at
GE Ventures. GE has nearly
500 factories, and the companys goal is to transform 75
of them into smart, connected
factories this year.
Part of the challenge is to
properly use the hardware
companies already have.
Newer machinery is bristling
with sensors and data ports
that are typically only used
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NY
LETS TACKLE
RETIREMENT
J.P. Morgan Asset Management is the marketing name for the asset management business of JPMorgan Chase & Co., and its affiliates worldwide.
JPMorgan Distribution Services, Inc. member FINRA/SIPC
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NY
SPEAKERS INCLUDE:
Preet Bharara
Oliver Hart
Kellyanne Conway
Gene Sperling
Daniel K. Tarullo
Rudy Giuliani
Elizabeth Warren
U.S. Senator (D., Mass.)
P R O U D LY S U P P O R T E D B Y :
2016 Dow Jones & Co., Inc. All rights reserved. 6DJ4537
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MEDIA
Fan Spending
Average per person spending
on-site at select entertainment
and sports venues.
Disneyland
$40
BY HANNAH KARP
Sporting events
(MLB, NHL, NBA)
$30
Live Nation
amphitheaters
$20
Sean Diddy Combs and Mase perform during the Bad Boy Family Reunion Tour in last month.
dors to direct fans to the
least-busy concession stands.
This high-margin spend
has been a key driver of our
growing concerts profitability
in 2016, Chief Executive Michael Rapino told investors.
Live Nation has been posting
record revenue lately amid a
boom in the live-music business, but its profit margins have
remained thin, around oneninth the size of Disneys margins on its parks and resorts
last year, with much of Live Nations $131 million in operating
income in 2015 coming from
sponsorship and advertising.
The top 100 global tours
grossed $4.7 billion last year,
up 16% from 2014, according
to concert-industry publica-
$22
10
0
2013 14
15
16
BY ERICH SCHWARTZEL
The sleepy movie-theater industry rarely is a player in bigticket deals. But after working
for months to get skeptical investors on board, AMC Entertainment Holdings Inc. appears poised to win shareholder
approval for an acquisition that
would make it the largest exhibitor in the world.
AMC, which is the secondbiggest theater chain in the
U.S., plans to pay $1.2 billion
to acquire Carmike Cinemas
Inc., a tie-up that Carmike
The movie-theater
chain would become
the worlds largest
exhibitor if two deals
receive approval.
shareholders are expected to
vote on Tuesday. The initial
deal, announced in March, was
met with investor backlash
and forced a delay of the vote.
Meanwhile, AMC Chief Executive Adam Aron is pursuing
a second acquisition that
would expand the company to
Europe. The deal is expected
to close by the end of the year.
Two acquisitions at the
same time, said Mr. Aron in a
Screen Shot
AMCs acquisitions will boost its
footprint to about 900 theaters
900 theaters
Odeon
800
242
700
Carmike
600
273
500
400
AMC
300
388
200
100
0
2012 13 14 15 16*
Note: Final tally will be smaller after
post-acquisition divestitures.
Source: the company
TOYOTA MOTOR
OSRAM LICHT
Waste Management Inc. selected James Fish Jr. as the companys chief executive, succeeding
longtime CEO David Steiner.
Mr. Fish also has been elected
to the companys board.
Chairman W. Robert Reum said
the move was the culmination of
a succession planning process we
started 18 months ago with the
support of the entire board, on
which Mr. Steiner will remain.
Mr. Steiner served as CEO at
the waste-services company since
2004. Under his tenure, recycling
pressured the top line of the Houston-based trash hauler, but the
company said last month its revenue rose 5.6% as average prices of
recycled commodities rose and recycling volumes improved.
Mr. Fish, 54 years old, has
held several roles since he joined
Waste Management in 2001. Before becoming chief financial officer in 2012, he served as senior
vice president for the companys
eastern group, and area vice
president for Pennsylvania and
West Virginia, among other roles.
The company said it is still
looking for a CFO. Mr. Fish will
continue to lead the finance organization until one is found.
Joshua Jamerson
SALES, IN MILLIONS
BUSINESS WATCH
WASTE MANAGEMENT
Recycling has pinched Waste Management, but last month the hauler said revenue had risen 5.6%.
www.ebook3000.com
DISTRIBUTOR
1. Doctor Strange
Disney
$43.0
2. Trolls
3. Arrival
$15.6
$10.8
$153.0
-49%
$94.0
$24.0
-25%
--
$15.6
$32.3
--29%
Source: comScore
in-law.
Mr. Meyer said the Nov. 9
issue was the Observers last.
In shifting its content entirely
online, New York will be
dropped from the title to reflect the broader national focus of the publication since it
rebranded its website as simply Observer.com in 2015.
Mr. Kushner, the heir to a
real-estate empire founded by
his father and a close adviser
to Mr. Trump, acquired the paper in 2006. In the months
leading up to the election, Mr.
Kushner had reached out to
media
executives
about
launching a television venture
built around Mr. Trumps appeal, people familiar with the
matter had said.
The weekly paper dates to
1987 when it was founded by
former investment banker Arthur Carter to chronicle city
culture, media, politics and
real estate.
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GENEROUS FARMERS
ON LONG ISLAND
NY
GENEROUS HELPINGS
ON STATEN ISLAND
Hey New York, nearly 1.4 million people in our city face hunger.
Help City Harvest rescue excess food for our neighbors in need.
Donate at cityharvest.org.
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
$150
200
100
175
50
150
Northern States
Other Big Wagers
125
5
0
2012
13
14
15
16
2012
13
14
15
16
Much of Alaskas oil is produced on state land, meaning royalties are paid to state coffers. Above, the Trans-Alaskan Pipeline.
ated in 1976 to bank some of
the royalties paid to the state
by oil companies following
huge crude discoveries in the
states North Slope.
Those finds have supported the states economy
for the past four decades, but
Alaskas oil production has
dwindled in recent years as
oil companies turned their
attention to reservessuch
as shale fields in the continental U.S.that were easier
and cheaper to bring to market.
As oil prices have fallen
from more than $100 a barrel
in mid-2014 to less than $50,
Alaskas revenue has declined
80% over the past two years,
state officials say.
To save cash, Alaska has
initially skeptical about buying thousands of homes, according to minutes from the
groups meetings. One trustee
said it felt more like buying a
concept rather than assets.
Owning and renting singlefamily homes had been primarily a local, mom-and-pop
business. But Wall Street
jumped in after the financial
crisis when millions of Americans lost their homes to
foreclosure and huge numbers of homes could be
bought for less than they cost
to build. Blackstone Group LP,
Starwood Capital Group and
others raced to courthouse
steps to buy foreclosed
homes in bulk.
Eventually the Alaska
trustees came around, per-
MetLife
12
Prudential
Financial
10
8
6
4
2
S&P 500
0
Nov. 4
Source: WSJ Market Data Group
Hary Tanoesoedibjo
and MNC Group Indonesia
would like to
FINANCE WATCH
STATE BANK OF INDIA
WOORI BANK
Quarterly Profit
Declines 35%
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MARKETS DIGEST
Dow Jones Industrial Average
16.61
15.67
2.52
All-time high 18847.66, 11/11/16
Last
Year ago
19200
2150
200-day moving average
18600
200-day moving average
2100
18000
2050
17400
2000
16800
1950
Week's high
UP
Friday's close
DOWN
Monday's open
Friday's close
Week's low
1900
15600
1850
15000
1800
N
t
Primary
market
N D
Composite
Koch Industries Inc. has agreed to purchase buildingproducts and paper maker Georgia-Pacific Corp. for $13.2
billion.
Nasdaq Composite
Latest Week
Close
Net chg
Low
% chg
52-Week
Close (l)
Low
Dow Jones
Industrial Average 18873.66 17994.64 18847.66
Transportation Avg 8611.17 8116.68 8578.65
Utility Average
671.59 621.54
627.82
Total Stock Market 22569.15 21729.69 22440.45
566.59
Barron's 400
566.92 530.69
5.36
6.24
959.38
503.51
-25.45
926.30
43.37
4.31
8.29
15660.18
6625.53
551.13
18663.11
446.15
3.78
1.96
4266.84
3947.80
-3.90
High
l 18847.66
l 8578.65
l
723.51
l 22658.47
l
566.59
s 190.74, or 3.78%
% chg
YTD 3-yr. ann.
% chg
9.3
7.1
12.0
7.1
8.7
8.2
14.2
8.7
6.3
9.7
6.1
6.8
7.7
6.5
5.1
6.3
5.5
4.6
3.5
10.1
12.2
last week
5300
5302.68 5122.77
4855.79 4685.74
5237.11
4751.95
190.74
91.49
5339.52
4909.97
5100
79.27
84.16
74.67
3.80
5.69
10.56
1829.08
1238.82
588.26
Russell 2000
1282.82 1164.57 1282.38
NYSE Composite
10735.00 10416.34 10652.24
Value Line
485.04 456.36
484.80
NYSE Arca Biotech 3438.33 2935.22 3378.03
NYSE Arca Pharma
503.16 470.89
492.99
KBW Bank
82.74
74.34
82.67
PHLX Gold/Silver
92.36
77.51
78.05
PHLX Oil Service
160.05 149.49
156.65
PHLX Semiconductor 838.02 798.20
837.24
14.17
CBOE Volatility
21.48
13.26
118.94
362.89
28.44
490.85
25.87
9.31
-11.07
6.80
34.37
-8.34
10.22
3.53
6.23
17.00
5.54
12.69
953.72
9029.88
383.82
2642.53
464.16
56.51
38.84
128.61
559.18
11.34
2182.30 2100.59
1563.92 1498.03
782.31 714.96
500 Index
MidCap 400
SmallCap 600
-12.42
4.54
4.28
-37.05
2190.15
1581.51
l
781.84
7.0
11.2
15.7
l 1282.38
l 10890.79
11.8
4.9
7.5
-6.8
-6.1
12.2
71.3
-10.4
30.1
-29.4
5.9
11.8
16.4
6.9
6.6
7.3
l
l
l
l
l
l
489.19
3868.26
554.66
l
82.67
112.86
180.73
l
838.6
28.14
DJ TSM
Americas
Brazil
Canada
Mexico
Chile
Close
2441.45
316.42
208.91
2117.80
Global
Global ex U.S.
Developed ex U.S.
Global Small-Cap
Global Large-Cap
3259.63
2109.86
2059.74
4461.93
3089.44
DJ Americas
Sao Paulo Bovespa
S&P/TSX Comp
IPC All-Share
Santiago IPSA
520.49
59183.51
14555.41
44978.25
3230.85
Asia-Pacific
Australia
China
Hong Kong
India
Japan
Singapore
South Korea
Taiwan
Latest Week
% chg
337.50
2810.87
324.14
3030.02
3491.41
4489.27
10667.95
1424.94
16812.37
445.41
8639.20
506.67
7880.29
6730.43
Europe
52-Week Range
Close
Low
2.15
1.56
0.90
4.67
1.73
0.91
0.31
2.47
1.60
3.34
3.92
0.32
3.68
1.49
2.65
2.96
1.95
2.56
1.51
2.55
3.98
2.69
3.03
1.11
1.73
2.01
3.78
0.56
1.11
3.67
2.26
0.49
1.67
2.78
0.93
0.12
1.22
2047.44
272.15
184.52
1699.54
2795.15
1863.63
1843.94
3665.30
2667.12
433.35
37497.48
11843.11
40265.37
2759.77
303.58
2566.26
284.92
2680.35
3130.76
3896.71
8752.87
1382.34
15104
382.61
7645.5
435.21
7496.62
5536.97
1190.45
4765.3
2655.66
18319.58
22951.83
14952.02
2532.70
1835.28
7664.01
YTD
% chg
High
2489.83
328.12
222.45
2141.23
4.5
2.7
0.6
4.6
3376.69
2245.72
2184.88
4630.74
3200.14
2.9
0.6
2.3
5.9
2.5
529.33
64924.52
14939.04
48694.90
3358.44
6.8
36.5
11.9
4.7
9.8
385.43 7.7
3293.71 9.3
365.68 6.1
3506.45 7.3
3760.89 5.6
4957.60 3.2
11382.23 0.7
1576.14 6.8
22718 21.5
472.24
0.8
10386.9 9.5
528.37
0.3
9016.56 10.6
7097.50
7.8
1498.20
5587.4
3651.77
24099.70
29045.28
20012.40
2960.78
2068.72
9385.65
2.7
1.4
9.7
2.8
2.7
8.7
2.4
1.2
7.4
s 926.30, or 4.31%
Prime rate
t
3.50
22500
22100
21700
4 7 8 9 10 11
November
LightStream
San Diego, CA
1.74%
866-619-2688
1.89%
800-288-3425
2.50
2.00
D J FMAM J J A S O N
2016
2.98%
Bankrate.com avg:
2.09%
PNC Bank
Hayesville, NC
Yield/Rate (%)
Last (l)Week ago
3-yr chg
52-Week Range (%)
Low 0 2 4 6 8 High (pct pts)
0.00 l
3.25
0.36 l
0.22 l
1.17 l
3.43
2.70
4.02
2.97
2.87
4.29
l
l
l
l
l
l
0.50
3.50
0.91
0.29
1.42
4.08
3.34
4.70
3.86
3.38
5.01
21300
9/21
Last Week
Close Net chg %Chg
DJ Commodity
TR/CC CRB Index
Crude oil, $ per barrel
YTD
% chg
533.08
180.74
43.41
98.99
2.10
2.17
89.65
2.12
2.42 -0.58
0.30
0.9211 0.0235
2.62
106.68
3.56
3.46 -11.32
1.26
0.01
0.59 -14.54
52-Week
Low Close(l) High
0.04
% Chg
552.44 12.31
DJ Commodity
420.23
155.01
1.64
3.34 10.93
1050.80
1364.90 13.20
92.57
84.64
0.87
99.88
1.21
195.82 -2.18
51.60
l
l
100.20
6.55
0.19
0.25
0.25
0.67
-0.16
-0.16
-0.62
-0.53
-0.14
-0.39
0.02
-0.35
Bankrate.com rates based on survey of over 4,800 online banks. *Base rate posted by 70% of the nation's largest
banks. Excludes closing costs.
Sources: SIX Financial Information; WSJ Market Data Group; Bankrate.com
5.00%
123.64 -13.00
Lockup
expiration Issue date
18%
12
3.00
2.00
1.00
Thursday
1
3 6
month(s)
1 2 3 5 710
years
maturity
0.00
s Yen
Issuer
SUPV
11.00
322.6
30.6
180 days
MRUS
10.00
61.4
74.0
180 days
PZRX
5.00
18.5
75.2
180 days
22.00
92.1
24.6
180 days
IPO Scorecard
Performance of IPOs, most-recent listed first
Smart Sand
SND Nov. 4/$11.00
GDS Hldgs
GDS Nov. 2/$10.00
Acushnet
GOLF Oct. 28/$17.00
11.36
3.3
3.4
9.65
3.5
7.3
18.46
8.6
2.8
BlackLine
BL Oct. 28/$17.00
23.89
40.5
Quantenna Comm
QTNA Oct. 28/$16.00
16.19
1.2
2.118
2.917
2.340
6.163
2.550
1.849
5.871
44
460
13
5
374
44
400
10
-9
348
70
741
31
5
538
Myovant Sciences
MYOV Oct. 27/$15.00
ZTO Express
ZTO Oct. 27/$19.50
Ra Pharmaceuticals
RARX Oct. 26/$13.00
13.31
2.4
2.4
0.8
Forterra
FRTA Oct. 20/$18.00
18.41
2.3
11.6
4.5
iRhythm Tech
IRTC Oct. 20/$17.00
24.23
42.5
7.0
Nov. 15
PetroShare
Oil & Gas
Nov. 16
PRHR
A
Fridays
price ($) Bookrunner(s)
8.7
1.85
150.0
15.35
Nov. 10
March 2,316
$421.9
...
Nov. 10
Nov. 8,316
$48.1
$30.5
WFS, JPM,
RBC Cptl Mkts
Bovie Medical
Healthcare
Nov. 10
Dec. 16,314
$12.0
$25.0
Piper Jaffray
$1,292.5 $15,799.8
Sources: J.P. Morgan; Ryan ALM; S&P Dow Jones Indices; Barclays Capital; Merrill Lynch
GS
Nov. 9
March 16,316
$416.3
...
MS, Barclays
Summit Materials
Construction/Building
Nov. 9
April 13,316
$367.2
...
Barclays
Thursday, November 17
Tuesday, November 15
Auction of four-week bills;
announced on Nov.14; settles on Nov.17
Final
maturity Issuer
Total
($mil.)
Rating
Bookrunner/
Fitch Moodys S&P Bond Counsel(s)
Nov. 14 prelim.
Pennsylvania
Turnpike
Commission
186.3 N.R.
N.R.
Nov. 15 prelim.
King Public
Hospital Dt #1
186.7 N.R.
A2
200.0 N.R.
Aa1
AAA Preliminary/
Locke Lord LLP
381.8 AAA
Aaa
AAA Preliminary/
McKennon
Shelton&Henn
Nov. 17 prelim.
Clark SD
510.8 N.R.
A1
AA- Preliminary/
Nov. 18 prelim.
Cincinnati
City-Ohio
192.9 N.R.
N.R.
N.R. M. Stanley/
Nov. 18 prelim.
176.6 N.R.
N.R.
N.R. Raymond
James/
250.0 N.R.
N.R.
Nov. 18 prelim.
Fort Bend
(Katy) ISD
225.0 N.R.
N.R.
N.R. J P Morgan
Securities
Nov. 18 prelim.
Los Angeles
Metro Trans
Auth
515.0 N.R.
N.R.
Nov. 18 prelim.
Philadelphia
CoPennsylvania
283.1 N.R.
N.R.
Nov. 18 prelim.
Richmond CoVirginia
450.0 N.R.
N.R.
Nov. 18 prelim.
719.8 N.R.
N.R.
N.R. M. Stanley/
Chiesa Shahinian
& Giantomasi
Nov. 18 prelim.
TSASC
1,024.4 N.R.
N.R.
Total Return
52-wk
3-yr
3.37 3.89
6.82 4.96
3.76 3.30
7.560 2.909
3.05 3.33
2.998 4.099
9.468 5.884
Bookrunner(s)
MS
US Silica Holdings
Oil & Gas
% Chg From
Friday3s Offer 1st-day
close ($) price close
Company SYMBOL
IPO date/Offer price
2016
1.783
2.730
2.100
6.217
2.270
1.677
5.543
% Chg From
Friday3s Offer 1st-day
close ($) price close
Company SYMBOL
IPO date/Offer price
s Euro
12
30
1.53 -17.35
4.00
2.0
Below, companies whose officers and other insiders will become eligible
to sell shares in their newly public companies for the first time. Such
sales can move the stocks price.
0.95 -0.76
l
l
SNES
Nq
Bookrunner(s)
Lockup Expirations
91.66 -0.55
WSJ
.COM
15.0
Senestech
Developer of chemicals to
manage animal pest
populations.
3.00
11/15
IGLEU
Nq
Commodities and
Currencies
Selected rates
Interest rate
last week
12.9
5.2
5.0
2.0
8.7
1.2
-11.4 16.3
-8.9
2.8
13.1
7.9
72.3 -5.6
-0.7 -18.6
26.2 18.7
-22.2
4.2
4.00%
Expected Issuer/Business
DJ US TSM
Region/Country Index
11/14
5000
4 7 8 9 10 11
November
Other Indexes
World
Symbol/
Pricing
primary Shares Range($)
exchange (mil.) Low/High
Issuer/business
5200
Expected
pricing date Filed
High
Initial public offerings of stock expected this week; might include some
offerings, U.S. and foreign, open to institutional investors only via the
Rule 144a market; deal amounts are for the U.S. market only
Financial Flashback
The Wall Street Journal, November 14, 2005
30
20
10
0
N D
M. Stanley/
Foster Pepper
N.R. Jefferies
Source:Thomson Reuters/Ipreo
Corporate Debt
Expected this week
Expected
wk ending Issuer/Business
Nov. 17
Envision Healthcare
Outsourced medical services. HY
$750.0
B3
Barclays, JPM,
SunTrust, WFS
Source: Dealogic
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
NY
CLOSED-END FUNDS
Listed are the 300 largest closed-end funds as
measured by assets.
Closed-end funds sell a limited number of shares and
invest the proceeds in securities. Unlike open-end
funds, closed-ends generally do not buy their shares
back from investors who wish to cash in their holdings.
Instead, fund shares trade on a stock exchange.
a-The NAV and market price are ex dividend. b-The
NAV is fully diluted. c-NAV is as of Thursdays close. dNAV is as of Wednesdays close. e-NAV assumes rights
offering is fully subscribed. f-Rights offering in process.
g-Rights offering announced. h-Lipper data has been
adjusted for rights offering. j-Rights offering has
expired, but Lipper data not yet adjusted. l-NAV as of
previous day. o-Tender offer in process. v-NAV is
converted at the commercial Rand rate. w-Convertible
Note-NAV (not market) conversion value. y-NAV and
market price are in Canadian dollars. NA signifies that
the information is not available or not applicable. NS
signifies fund not in existence of entire period.
12 month yield is computed by dividing income
dividends paid (during the previous twelve months for
periods ending at month-end or during the previous
fifty-two weeks for periods ending at any time other
than month-end) by the latest month-end market price
adjusted for capital gains distributions.
Source: Lipper
52 wk
Prem Ttl
Fund (SYM)
NAV Close /Disc Ret
General Equity Funds
Adams Divers Equity Fd ADX 15.62 13.02 -16.6 4.9
Boulder Growth & Income BIF 10.74 8.50 -20.9 18.2
Central Securities CET 26.04 20.94 -19.6 10.9
CohSteer Opprtnty Fd FOF 12.61 11.47 -9.0 13.6
Cornerstone Strategic CLM 13.06 15.11 +15.7 15.2
EtnVnc TaxAdvDiv EVT
19.75 NA 11.6
Gabelli Dividend & Incm GDV 21.24 19.09 -10.1 12.2
Gabelli Equity Trust GAB 5.76 5.31 -7.8 9.4
Genl American Investors GAM 36.90 29.88 -19.0 -4.0
HnckJohn TxAdv HTD 24.02 21.50 -10.5 12.7
Liberty All-Star Equity USA 5.96 4.95 -16.9 4.6
Royce Micro-Cap RMT 9.34 7.77 -16.8 17.0
Royce Value Trust RVT 15.13 12.65 -16.4 17.3
Source Capital SOR 40.59 35.98 -11.4 8.0
Tri-Continental TY
25.25 21.16 -16.2 10.3
Zweig Fund ZF
12.80 NA NA NA
Specialized Equity Funds
Adams Natural Rscs Fd PEO 23.12 19.30 -16.5 4.6
AllnzGI NFJ Div Interest NFJ 14.42 12.48 -13.5 11.4
AlpnGlblPrProp AWP 6.12 5.08 -17.0 -1.3
ASA Gold & Prec Metals ASA
11.62 NA 61.2
BlkRk Enh Cap Inco CII 14.57 12.98 -10.9 1.1
BlkRk Engy Res Tr BGR 15.04 13.58 -9.7 2.4
BlackRock Enh Eq Div Tr BDJ 8.86 7.75 -12.5 12.3
Blackrock Global Trust BOE 13.26 11.48 -13.4 1.1
BlkRk Health Sci BME 32.74 35.70 +9.0 6.3
BlkRk Intl Grwth&Inco BGY 6.27 5.45 -13.1 -2.3
BlackRck Rscs Comm Str Tr BCX 9.31 7.87 -15.5 21.1
BlackRock Science & Tech BST 19.90 18.10 -9.0 13.7
BlackRock Utility & Infr BUI 18.50 17.88 -3.4 16.2
CBREClarionGlblRlEstIncm IGR 8.46 7.23 -14.5 5.7
Central Fund of Canada CEF 13.81 NA NA NA
ClearBridge Amer Engy CBA
8.62 NA -10.1
ClearBridge Engy MLP Fd CEM 16.22 15.07 -7.1 -12.2
Clearbridge Engy MLP Opp EMO 13.69 13.18 -3.7 -5.9
Clearbridge Engy MLP TR CTR 13.78 12.50 -9.3 -4.8
Cohen & Steers Infr Fd UTF 21.56 19.69 -8.7 13.0
C&S MLP Incm & Engy Opp MIE 11.57 10.00 -13.6 -0.3
Cohen & Steers Qual Inc RQI 12.73 11.64 -8.6 14.9
CohnStrsPfdInco RNP 21.24 18.26 -14.0 14.3
Cohen & Steers TR RFI 12.84 11.81 -8.0 8.4
CLSeligmn Prem Tech Gr Fd STK 17.30 17.92 +3.6 11.3
Divers Real Asset Incm Fd DRA 18.01 15.47 -14.1 5.1
Duff & Phelps DNP
8.89 10.00 +12.5 17.0
Duff&PhelpsGblUtilIncFd DPG 17.25 14.68 -14.9 7.7
Eaton Vance Eqty Inco Fd EOI
11.96 NA 3.9
Eaton Vance Eqty Inco II EOS
13.12 NA 7.7
EtnVncRskMngd ETJ
8.84 NA -1.3
Etn Vnc Tax Mgd Buy-Write ETB
16.37 NA 12.1
Eaton Vance BuyWrite Opp ETV
14.69 NA 8.4
Eaton Vance Tax-Mng Div ETY
10.21 NA 2.7
EatonVanceTax-MngdOpp ETW
10.52 NA 1.7
EtnVncTxMngGlDvEqInc EXG
8.13 NA 0.7
Fiduciary/Clymr Opp Fd FMO 14.16 15.00 +5.9 18.2
FT Energy Inc & Growth Fd FEN 24.26 24.75 +2.0 15.7
FstTrEnhEqtIncFd FFA 14.97 13.18 -12.0 7.9
First Tr Engy Infr Fd FIF 18.49 17.16 -7.2 21.7
First Tr MLP & Engy Incm FEI 14.97 15.42 +3.0 18.2
Gabelli Hlthcr & Well GRX 10.72 9.71 -9.4 1.8
Gabelli Utility Tr GUT 5.14 6.41 +24.7 24.1
GAMCOGlblGoldNatRscs&Inc GGN 5.62 NA NA NA
GoldmanSachsMLPIncOpp GMZ
9.09 NA -1.7
Goldman Sachs MLP Energy GER
6.90 NA -7.0
John Hancock Finl Opps Fd BTO 31.03 31.48 +1.5 19.7
KayneAndersonEngyTRFd KYE 12.17 10.99 -9.7 -9.5
Kayne Anderson MLP Invt KYN 18.58 19.58 +5.4 11.1
52 wk
Prem Ttl
Fund (SYM)
NAV Close /Disc Ret
Kayne Andrsn Midstr Engy KMF 16.21 14.55 -10.2 -4.8
Macquarie Glbl Infrstrctr MGU 22.23 18.92 -14.9 3.6
NeubergerBermanMLPIncm NML 9.79 8.78 -10.3 -9.7
Neubrgr Brm Rl Est Sec Fd NRO 5.54 5.08 -8.3 16.3
Nuveen Dow 30 Dynamic DIAX 16.25 14.34 -11.8 9.8
NuvCorEqAlpha JCE 14.16 13.15 -7.1 4.1
NuvDivInco JDD
12.26 11.00 -10.3 14.1
Nuveen Engy MLP Fd JMF 12.79 12.98 +1.5 18.9
NuvNASDAQ100DynOver QQQX 19.57 18.34 -6.3 3.9
Nuveen Real Estate Fd JRS 10.97 10.02 -8.7 7.2
NuvS&P500DynOverwrite SPXX
13.56 NA 8.6
NuveenS&P500Buy-Write BXMX 13.47 12.69 -5.8 6.9
Reaves Utility Fund UTG 31.07 28.92 -6.9 7.1
Tekla Hlthcr Investors HQH 24.49 24.05 -1.8 -12.9
Tekla Healthcare Opps Fd THQ 17.84 16.53 -7.3 8.2
Tekla Life Sciences HQL 19.78 18.65 -5.7 -13.2
Tekla World Hlthcr Fd THW 15.06 14.18 -5.8 -0.4
Tortoise Engy Ind Fd NDP 15.82 15.51 -2.0 31.9
Tortoise Energy TYG 28.71 30.31 +5.6 19.1
Tortoise MLP Fund NTG 19.10 19.21 +0.6 28.1
Voya Gl Equity Div IGD 7.76 6.87 -11.5 7.9
Income Preferred Stock Funds
Calamos Strat Fd CSQ 11.21 9.92 -11.5 13.0
Cohen & Steers Dur Pfd LDP 25.91 23.28 -10.2 12.5
Cohen & Strs Sel Prf Inco PSF 26.69 25.31 -5.2 11.4
FT Interm Duration Pfd FPF 23.42 21.23 -9.4 7.2
Flaherty & Crumrine Dyn DFP 24.46 22.66 -7.4 7.0
Flaherty & Crumrine Pfd FFC 18.82 19.36 +2.9 4.2
John Hancock Pfd Income HPI 20.95 19.55 -6.7 7.3
John Hancock Pfd II HPF 20.70 19.55 -5.6 9.0
John Hancock Pfd Inc III HPS 18.40 16.69 -9.3 5.8
JHancock Pr Div PDT 15.21 13.49 -11.3 10.6
LMP Cap & Inco Fd SCD 14.97 12.57 -16.0 12.6
Nuveen Preferred & Incm JPI 24.12 22.64 -6.1 7.5
Nuveen Preferred Inc Opp JPC 10.19 9.03 -11.4 7.8
Nuveen Preferred Incm Fd JPS 9.51 8.71 -8.4 4.2
TCW Strategic Income Fund TSI 5.91 5.22 -11.7 2.8
Virtus Global Dividend ZTR 12.48 NA NA NA
Convertible Sec's. Funds
AdvntClymrFd AVK
13.50 NA 8.4
AllianzGI Conv & Incm NCV 6.41 5.99 -6.6 19.3
AllianzGI Conv & Incm II NCZ 5.72 5.32 -7.0 18.8
AllianzGI Equity & Conv NIE 20.94 18.10 -13.6 8.9
Calamos Conv Hi Inco Fd CHY 11.19 10.02 -10.5 2.8
Calamos CHI
10.58 9.49 -10.3 7.0
World Equity Funds
Alpine Tot Dyn Div AOD 8.74 7.24 -17.2 3.0
Calamos Glbl Dyn Inc CHW 8.04 6.99 -13.1 8.1
Cdn Genl Inv CGI
26.62 17.99 -32.4 0.1
China Fund CHN
18.23 15.61 -14.4 0.3
Clough Global Opp Fd GLO
8.83 NA -9.7
EtnVncTxAdvGblDiv ETG
14.05 NA -4.9
EatonVance TxAdv Opport ETO
20.39 NA 4.6
First Trust Dynamic Eur FDEU 17.06 15.15 -11.2 -10.6
Gabelli Glbl Multimedia GGT 8.06 7.30 -9.4 4.0
GDL Fund GDL
11.80 9.69 -17.9 4.0
India Fund IFN
26.37 22.76 -13.7 7.1
Japan Sml Cap JOF
10.46 NA 8.6
Korea Fund KF
36.96 32.34 -12.5 3.0
Mexico Fund MXF
14.28 NA -15.3
MS China a Shr Fd CAF
18.01 NA 7.4
MS India Invest IIF
26.66 NA 8.9
New Germany Fund GF 14.87 13.29 -10.6 -1.7
Swiss Helvetia Fund SWZ 11.63 10.43 -10.3 4.0
Templeton Dragon TDF 19.60 16.75 -14.5 1.0
Templeton Emerging EMF 13.68 11.90 -13.0 18.4
Voya Infr Indls & Matls IDE 14.60 13.44 -7.9 21.7
Wells Fargo Gl Div Opp EOD 6.22 5.21 -16.2 -2.5
Prem12 Mo
Fund (SYM)
NAV Close /Disc Yld
U.S. Mortgage Bond Funds
BlackRock Income Trust BKT 6.86 6.23 -9.2 5.3
Brkfld Mortgage Opp Incm BOI 16.55 13.91 -16.0 10.6
Brookfield TR Fund HTR 24.14 20.33 -15.8 10.5
Nuveen Mtg Oppy Term Fd JLS 25.20 23.20 -7.9 6.0
Investment Grade Bond Funds
Blackrock Core Bond Tr BHK 14.36 12.82 -10.7 6.0
BlkRk Credit Alloc Incm BTZ 14.31 12.25 -14.4 7.1
John Hancock Income Secs JHS 15.25 13.93 -8.7 5.9
MFS Inc Tr MIN
4.77 4.40 -7.8 9.1
WstAstClymr InfLnkd Fd WIW 12.39 NA NA 3.5
WstAssetClymr InflLnk Sec WIA 12.68 NA NA 3.3
Loan Participation Funds
Apollo Sr Fltg Rate Fd AFT 18.07 16.65 -7.9 6.6
BlackRock FR Incm Strat FRA 14.80 13.73 -7.2 5.4
Blkrk FltRt InTr BGT 14.30 13.48 -5.7 5.1
BlackstoneGSO Strat Cred BGB NA 14.51 NA 8.5
Prem12 Mo
Fund (SYM)
NAV Close /Disc Yld
Blackstone GSO Sr Float BSL NA 17.36 NA 6.0
Eagle Point Credit ECC NA 16.56 NA 14.3
Eaton Vance FR Incm Tr EFT 15.17 14.75 -2.8 6.2
EatonVnc SrFltRate EFR 14.83 14.30 -3.6 6.6
Eaton Vance Sr Incm Tr EVF 6.95 6.43 -7.5 6.4
1st Tr Sr Fltg Rt Fd II FCT 14.11 13.44 -4.7 6.2
Invesco Credit Opps Fund VTA 12.87 11.44 -11.1 7.7
Invesco Senior Income Tr VVR 4.77 4.33 -9.2 6.8
Nuveen Credit Strt Inc Fd JQC 9.25 8.27 -10.6 7.3
NuvFloatRteInco Fd JFR 11.48 11.16 -2.8 6.5
Nuv Float Rte Opp Fd JRO 11.43 11.36 -0.6 6.8
Nuveen Senior Income Fund NSL 6.82 6.44 -5.6 6.5
Pioneer Floating Rate Tr PHD 12.52 11.62 -7.2 6.1
Voya Prime Rate Trust PPR 5.73 5.27 -8.0 5.9
High Yield Bond Funds
AllianceBernstein Glbl AWF 13.24 11.55 -12.8 8.9
Barings Glbl Short Dur HY BGH 20.18 17.61 -12.7 10.0
BlackRock Corp Hi Yd Fd HYT 11.58 9.90 -14.5 9.4
BlkRk Debt Strat Fd DSU 4.05 3.48 -14.1 6.6
BlackRockDurInco Tr BLW 16.66 14.82 -11.1 8.5
Credit Suisse High Yld DHY 2.61 2.36 -9.6 11.6
DoubleLine Incm Solutions DSL NA 17.55 NA 10.0
Dreyfus Hi Yld Fd DHF 3.41 3.10 -9.1 10.1
Fst Tr Hi Inc Lg/Shrt Fd FSD 17.45 15.02 -13.9 6.8
Guggenheim Strat Opps Fd GOF 18.56 18.66 +0.5 11.1
Ivy High Income Opps Fund IVH 15.40 13.28 -13.8 11.3
Neuberger Berman HYS NHS 12.90 10.86 -15.8 8.2
NexPoint Credit Strat Fd NHF 25.08 20.88 -16.7 13.4
Nuveen Gl Hi Incm Fd JGH 17.23 14.70 -14.7 9.95
Nuveen High Incm Dec18 JHA 10.00 10.10 +1.0 NS
Pioneer High Income Trust PHT 10.18 9.54 -6.3 11.3
Prud Gl Shrt Dur Hi Yd GHY 16.50 14.37 -12.9 8.8
Prudentl Sh Dur Hi Yd Fd ISD 16.73 14.88 -11.1 8.5
Wells Fargo Incm Opps Fd EAD 9.00 7.75 -13.9 9.4
Wstrn Asset Glbl Hi Inco EHI 10.93 9.26 -15.3 11.6
Wstrn Asset High Inco II HIX 7.49 6.73 -10.1 10.9
Wstrn Asset Opp Fd HIO 5.49 4.76 -13.3 8.5
West Asst HY Def Opp Fd HYI 16.33 14.30 -12.4 8.8
Other Domestic Taxable Bond Funds
Ares Dynamic Credit Alloc ARDC NA 14.40 NA 8.8
Barings Corp Investors MCI NA 16.57 NA 7.0
BlackRock Multi-Sector IT BIT 18.60 15.78 -15.2 9.7
BlackRock Taxable Mun Bd BBN 22.99 20.74 -9.8 6.9
Doubleline Oppor Credit DBL NA 23.21 NA 10.1
Duff & Phelps Utl & Cp Bd DUC 10.06 9.24 -8.2 6.3
EtnVncLtdFd EVV
NA 12.92 NA 8.9
Franklin Ltd Duration IT FTF NA 11.74 NA 6.1
GuggenheimTaxableMuni GBAB 23.03 20.53 -10.9 7.3
John Hancock Investors JHI 17.70 16.23 -8.3 8.3
KKR Income Opps Fund KIO NA NA NA 9.5
MFS Charter MCR
9.30 8.20 -11.8 8.6
MFS Multimkt MMT 6.65 5.76 -13.4 8.8
Nuveen Build Am Bd Fd NBB 21.66 20.42 -5.7 6.1
PIMCO Corporate & Incm PTY NA 13.95 NA 11.1
PIMCO Corporate & Incm PCN NA 14.08 NA 9.2
PIMCO HiInco PHK
NA 8.74 NA 14.7
PIMCO Inco Str Fd PFL NA 10.12 NA 10.1
PIMCO Incm Strategy Fd II PFN NA 8.99 NA 10.9
Putnam Mas Inco PIM 4.92 4.40 -10.6 7.0
Putnam Premier Income Tr PPT 5.41 4.79 -11.5 6.3
Wells Fargo Multi-Sector ERC 14.02 12.08 -13.8 8.5
World Income Funds
Abeerden Asia-Pacific FAX 5.56 4.80 -13.7 6.0
Etn Vnc Short Dur Fd EVG NA 13.12 NA 7.3
Legg Mason BW Glbl Incm BWG 13.75 11.77 -14.4 10.0
MS EmMktDomDebt EDD NA 7.12 NA 9.6
PIMCO Dynamic Credit PCI NA 19.15 NA 10.8
PIMCODynamicIncomeFund PDI NA 26.44 NA 14.8
PIMCO Income Opportunity PKO NA 21.59 NA 10.0
PIMCO Strat Income Fund RCS NA 8.53 NA 10.1
Templeton Emerging TEI 11.92 10.31 -13.5 9.1
Templeton Global GIM 6.92 6.12 -11.6 4.7
Wstrn Asset Emerg Mkts ESD 17.25 14.39 -16.6 8.2
Wstrn Asset Emerg Mkt II EMD 12.41 10.45 -15.8 7.6
Wstrn Asset Gl Def Opp Fd GDO 18.71 16.58 -11.4 7.8
National Muni Bond Funds
AllianceBrnstn NtlMun AFB 15.02 13.34 -11.2 5.2
Blackrock Invest BKN 16.18 15.12 -6.6 5.6
BlackRockMun2030Target BTT 23.79 21.98 -7.6 4.1
BlackRock Municipal Trust BFK 14.70 14.06 -4.4 6.0
BlackRockMuni BLE 15.37 14.55 -5.3 6.1
BlackRockMuni Tr BYM 15.44 14.01 -9.3 5.6
BlkRk MuniAssets Fd MUA 14.26 13.60 -4.6 4.9
BlkRk Munienhanced MEN 12.12 11.45 -5.5 5.9
BlkRk MuniHldgs Inv MFL 15.08 14.16 -6.1 5.8
BlkRk MuniHldgs Qlty II MUE 14.42 13.14 -8.9 5.8
BlkRk MuniHldgs MHD 17.37 16.28 -6.3 6.1
BlkRk MuniVest MVF 9.92 9.76 -1.6 6.2
BlkRk MuniVest II MVT 15.62 15.63 +0.1 6.0
Prem12 Mo
Fund (SYM)
NAV Close /Disc Yld
BlkRk MuniYield MYD 15.13 14.09 -6.9 6.2
BlkRk MuniYld Quality MQY 15.96 14.80 -7.3 5.9
BlkRk MuniYld Qlty II MQT 14.06 12.67 -9.9 5.8
BlRkMunyldQltyIII MYI 14.68 13.70 -6.7 6.0
Deutsche Mun Income Tr KTF 13.06 12.96 -0.8 6.3
Dreyfus Mun Bd Infr Fd DMB 13.96 12.69 -9.1 5.8
Dreyfus Municipal Income DMF 9.54 8.86 -7.1 5.7
Dreyfus Strat Muni Bond DSM 8.57 8.24 -3.9 5.9
Dreyfus Strategic Munis LEO 8.80 8.53 -3.1 5.8
Eaton Vance Mun Bd Fd EIM 13.97 12.63 -9.6 5.6
Eaton Vance Mun Income EVN 13.59 12.59 -7.4 5.9
EV National Municipal Opp EOT 22.48 21.54 -4.2 4.7
Invesco Adv Mun Incm II VKI 12.38 11.03 -10.9 6.4
Invesco Mun Incm Opps Tr OIA 7.60 7.23 -4.9 5.1
Invesco Mun Opportunity VMO 13.80 12.66 -8.3 6.6
Invesco Municipal Trust VKQ 13.77 12.32 -10.5 6.2
Invesco Qlty Mun Inco IQI 13.82 12.41 -10.2 5.8
Invesco Inv Grade Muni VGM 14.26 12.79 -10.3 6.4
Invesco Value Mun Incm Tr IIM 16.41 14.59 -11.1 5.4
MainStay DefinedTerm MMD NA NA NA 5.9
MFS Munl Inco MFM 7.46 6.77 -9.2 5.5
NuveenAMT-FreeMunValue NUW 16.99 16.46 -3.1 4.5
Nuveen AMT-Free Quality NEA 15.03 13.24 -11.9 5.4
Nuveen Enh AMT-Fr Muni NVG 16.20 14.35 -11.4 5.5
Nuveen Enh Muni Credit NZF 15.87 14.24 -10.3 5.8
Nuveen Enhncd Mun Val Fd NEV 15.20 14.65 -3.6 6.4
Nuveen Intermed Dur Mun NID 13.69 12.56 -8.3 5.1
NuveenMuniIncoOpp Fd NMZ 13.36 13.12 -1.8 6.7
Nuveen Muni Value Fund NUV 10.25 9.65 -5.9 3.9
Nuveen Quality Muni NAD 15.41 13.72 -11.0 5.9
Nuveen Sel Tax Free NXP 15.27 13.99 -8.4 3.7
Nuveen Sel TF NXQ 14.72 13.35 -9.3 3.7
PIMCO MuniFd PMF
NA 14.70 NA 6.2
Pimco Muni Inc II PML 12.23 12.27 +0.3 6.1
PIMCO Muni Inc III PMX NA 11.35 NA 6.2
Pioneer Mun Hi Inc Adv Tr MAV 12.24 12.30 +0.5 6.6
Pioneer Mun Hi Incm Tr MHI 13.09 12.30 -6.0 6.3
Putnam Tr PMM
7.97 7.15 -10.3 5.8
PutnamMuniOpportunities PMO 13.28 11.98 -9.8 5.7
Wstrn Asset Mngd Muni MMU 14.19 13.48 -5.0 5.5
WesternAssetMunTrFund MTT 22.04 22.32 +1.3 4.5
Single State Muni Bond
BlackRock CA Municipal Tr BFZ 15.50 15.05 -2.9 5.4
BlkRk MuniHldgs CA Qlty MUC 15.74 14.40 -8.5 5.2
Blkrck MunHl NJ Qlty MUJ 15.80 14.05 -11.1 5.7
BlRk MuHldg NY Qlty MHN 14.89 13.73 -7.8 5.4
BlkRk MuniYld CA Fd MYC 16.05 15.66 -2.4 5.2
BlkRk MuniYld CA Quality MCA 15.93 14.51 -8.9 5.3
BlkRk MuniYld MI Qlty MIY 15.55 13.91 -10.5 5.6
BlkRk MuniYld NJ Fd MYJ 16.19 15.96 -1.4 5.5
BlRk Muyld NY Qlty MYN 14.29 13.06 -8.6 5.2
Eaton Vance CA Mun Bd EVM 12.71 11.39 -10.4 5.5
Invesco CA Value Mun Incm VCV 13.67 12.45 -8.9 5.6
Invesco PA Value Mun Incm VPV 14.18 12.31 -13.2 5.9
Invesco Inv Grade NY Muni VTN 14.86 13.52 -9.0 5.8
Nuveen California AMT NKX 15.81 14.71 -7.0 5.6
Nuveen CA Muni Value NCA 10.43 10.40 -0.3 4.4
Nuveen CA Quality Muni NAC 15.80 14.22 -10.0 5.9
NuveenMDPremiumIncome NMY 14.57 12.65 -13.2 5.0
Nuveen MI Quality Income NUM 15.53 13.68 -11.9 5.2
NuveenNCPremiumIncome NNC 15.02 13.13 -12.6 4.2
Nuveen NJ Div Adv NXJ 15.70 13.67 -12.9 5.4
NuvAMTFreeMuniIncm NRK 14.57 12.87 -11.7 5.2
Nuveen NY Div Fnd NAN 15.22 13.67 -10.2 5.4
Nuveen Ohio Qual Income NUO 16.68 14.70 -11.9 5.1
Nuveen Pa Investment Qual NQP 15.35 13.35 -13.0 5.6
NuveenVAPremiumIncome NPV 14.44 13.46 -6.8 4.7
PIMCO California Muni PCQ NA 15.58 NA 5.8
PIMCO California Mun II PCK NA 9.48 NA 6.3
52 wk
Prem Ttl
Fund (SYM)
NAV Close /Disc Ret
General Equity Funds
Specialized Equity Funds
Corsair Opportunity:A 9.66 NA NA NS
Corsair Opportunity:I 9.70 NA NA 3.6
NexPointRlEstStrat;A 20.07 NA NA NS
NexPointRlEstStrat;C 20.02 NA NA NS
NexPointRlEstStrat;Z 20.01 NA NA NS
SharesPost 100
27.00 NA NA 7.3
Versus Cap MMgr RE Inc:F 27.01 NA NA 6.4
Versus Cap MMgr RE Inc:I 27.07 NA NA 6.8
Wildermuth Endwmnt Str 11.45 NA NA 8.0
Wildermuth Endwmnt S:C 11.39 NA NA NS
Income Preferred Stock Funds
Convertible Sec's. Funds
Calmos Dyn Conv and Inc CCD 19.25 17.19 -10.7 1.5
World Equity Funds
BMO LGM Front ME
9.05 NA NA 5.9
Prem12 Mo
Fund (SYM)
NAV Close /Disc Yld
U.S. Mortgage Bond Funds
Vertical Capital Income 12.41 NA NA 2.9
Loan Participation Funds
504 Fund
9.98 NA NA 3.3
FS Global Crdt Opptys D NA NA NA 2.6
Invesco Sr Loan A
6.47 NA NA 5.4
Invesco Sr Loan B
6.47 NA NA 5.4
Invesco Sr Loan C
6.49 NA NA 4.7
Invesco Sr Loan IB
6.48 NA NA 5.7
Invesco Sr Loan IC
6.48 NA NA 5.5
Invesco Sr Loan Y
6.48 NA NA 5.6
Voya Senior Income:A 12.70 NA NA 5.5
Voya Senior Income:B 12.64 NA NA 5.0
Voya Senior Income:C 12.68 NA NA 5.0
Voya Senior Income:I 12.66 NA NA 5.8
Voya Senior Income:W 12.71 NA NA 5.7
Prem12 Mo
Fund (SYM)
NAV Close /Disc Yld
High Yield Bond Funds
PionrILSInterval
11.10 NA NA 5.7
WA Middle Mkt Dbt 771.35 NA NA 11.3
WA Middle Mkt Inc WMF772.23 NA NA 11.5
Other Domestic Taxable Bond Funds
Capstone Church Capital 11.63 NA NA 1.3
GL Beyond Income
4.61 NA NA NE
Palmer Square Opp Income 18.22 NA NA 6.6
Resource Credit Inc:A
NA NA NA 3.4
Resource Credit Inc:C
NA NA NA 3.0
Resource Credit Inc:D
NA NA NA 3.1
Resource Credit Inc:I
NA NA NA 3.4
Resource Credit Inc:T
NA NA NA 3.0
Resource Credit Inc:U
NA NA NA 3.4
Resource Credit Inc:W NA NA NA 3.1
Key annual interest rates paid to borrow or lend money in U.S. and
international markets. Rates below are a guide to general levels but
dont always represent actual transactions.
Inflation
241.428
248.731
0.24
0.18
1.5
2.2
Week
ago
52-Week
High
Low
Policy Rates
0.00
0.50
0.25
1.50
Euro zone
Switzerland
Britain
Australia
0.00
0.50
0.25
1.50
0.48
0.49
0.09
Euro Libor
One month
Three month
Six month
One year
1.00
1.00
0.75
0.4300
0.5625
0.3000
0.4100
0.4300
0.4500
0.7500
0.4000
0.5500
0.5600
0.1000
0.3100
0.0200
0.0600
0.1200
...
...
...
0.73
0.90
n.q.
n.q.
n.q.
n.q.
n.q.
n.q.
Libor
One month
Three month
Six month
One year
0.53817
0.90567
1.26211
1.58789
0.53256
0.88094
1.24711
1.56011
0.54633
0.90567
1.26433
1.59567
0.19725
0.36360
0.60175
0.93085
-0.382
-0.331
-0.214
-0.075
-0.380
-0.323
-0.217
-0.078
-0.148
-0.092
-0.002
0.076
-0.382
-0.332
-0.218
-0.083
0.4400
0.5625
0.3000
0.4100
0.4300
One month
Three month
Six month
One year
-0.374
-0.312
-0.210
-0.069
Latest
-0.373
-0.313
-0.213
-0.071
Value
Traded
-0.137
-0.083
-0.011
0.082
0.501
0.538
Open Implied
Settle Change Interest Rate
Secondary market
Fannie Mae
Treasury Nov
Treasury Dec
Treasury Jan
Notes on data:
U.S. prime rate is effective December 17, 2015.
Discount rate is effective December 17, 2015.
U.S. prime rate is the base rate on corporate loans posted by at least 70% of the 10 largest U.S. banks;
Other prime rates arent directly comparable; lending practices vary widely by location;
DTCC GCF Repo Index is Depository Trust & Clearing Corp.'s weighted average for overnight trades in
applicable CUSIPs. Value traded is in billions of U.S. dollars.
Futures on the DTCC GCF Repo Index are traded on NYSE Liffe US.
Sources: Federal Reserve; Bureau of Labor Statistics; DTCC; SIX Financial Information;
General Electric Capital Corp.; Tullett Prebon Information, Ltd.
$1,024,385,000*
YOUR GUIDE TO
WHATS HAPPENING NOW
TSASC, INC.
Tobacco Settlement Bonds
SIGN UP AT WSJ.COM/DAILYSHOT
TSASC, Inc. is a local development corporation organized under the Not-For-Profit Corporation Law
of the State of New York. TSASC, Inc. is an instrumentality of, but separate and apart from, The City
of New York
Proceeds from the Bonds will primarily be used to refund all of TSASC, Inc.s currently outstanding bonds
EXCLUSIVE TO
WSJ MEMBERS
Repayment of the Bonds will be from a portion of New York Citys share of Tobacco Settlement
Revenues derived from the Master Settlement Agreement between certain tobacco manufacturers
and 46 states, including New York
Interest on the Bonds is Federally Tax-Exempt**
Interest on the Bonds is exempt from personal income taxes imposed by the State of New York and
The City of New York **
Only certain of the Senior Bonds (Series A) will be offered to retail investors
Contact your broker for further information and to obtain copies of the Preliminary Offering Circular.
Jefferies
Citigroup
Barclays
Raymond James
Wells Fargo Securities
www.ebook3000.com
-0.374
-0.313
-0.213
-0.074
52-Week
High
Low
Under no circumstances shall this announcement constitute an offer to sell or a solicitation of an offer to buy, nor shall there be
any sale of the Bonds in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or
qualification under the securities laws of such jurisdiction. The Bonds will be sold by means of an Offering Circular. Prospective
investors should carefully consider certain risks and other considerations contained in the Preliminary Offering Circular. One or
a combination of the risks factors may adversely affect the ability of TSASC, Inc. to pay debt service on the Bonds and could have
an adverse effect on the liquidity and/or market value of the Bonds.
SPEED-READ
THE MARKETS
0.27
Federal funds
4 weeks
13 weeks
26 weeks
0.67
30 day
Two month
Three month
Four month
Five month
Six month
1.30
Discount
Effective rate
High
Low
Bid
Offer
2.00
0.00
0.50
0.25
1.50
2.25
n.q.
90 days
0.05
0.50
0.50
2.00
Overnight repurchase
U.S.
2.25
Prime rates
U.S.
Canada
Japan
2.25
Commercial paper
30 to 270 days
International rates
Latest
52-Week
high
low
Call money
Week
ago
Latest
NOT FDIC-Insured
NO Bank Guarantee
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
* ***
CREDIT MARKETS
BY HEATHER GILLERS
President-elect
Donald
Trump is promising an infrastructure boom once he is
sworn in. In some parts of the
country, a burst of new construction spending by states
and cities is already under way.
State and local governments
around the U.S. have issued
$149 billion in bonds for new
infrastructure projects so far
this year, putting 2016 municipal borrowing on track to surpass each of the past five years,
according to Thomson Reuters
data.
Much of the new bond issuance happened in the second
and third quarters, after a long
stretch of low borrowing. Total
bond issuance, including refinancing, has reached $388 billion, also a five-year record.
On Tuesday, voters across
the country authorized state
and local governments to borrow an additional $55.7 billion
for similar projects, according
to Ipreo. It was by far the most
borrowing approved since
2008.
I think theres a lot of mo-
mentum, not only at the political level but also by the general
public, to start spending more
on infrastructure, said Dan
Heckman, senior fixed-income
strategist at U.S. Bank Wealth
Management.
Mr. Trump made a $1 trillion
infrastructure investment over
the next decade one of his first
priorities as president, promising
in
his
victory
speech Wednesday to rebuild
our highways, bridges, tunnels,
airports, schools, hospitals.
The proposal relies on private
financing. Experts and industry
officials say it is unlikely the
nations aging infrastructure
can be updated without public
support.
In the short term, however,
costs could go up for government borrowers. Municipalbond prices have dropped
along with Treasurys in days
after the election, with interest
rates for an A-rated 20-year
general-obligation bond at
3.2% on Thursday, compared
with 2.94% on Monday, according to Thomson Reuters. Analysts cited concerns that inflation
under
a
Trump
ROBERT GALBRAITH/REUTERS
San Franciscos BART system won voters approval on Tuesday to issue $3.5 billion in bonds.
2014, according to an analysis
by Pew Charitable Trusts.
With expectations of a federal rate increase in December,
local officials were eager to get
in on historically low interest
rates, many analysts said.
Municipalities issued $108
billion in bonds in the third
quarter, compared with $86 billion in the third quarter of
2015, according to Thomson
Reuters data. They also asked
voters Tuesday to approve
nearly 700 ballot measures
seeking to issue bonds and won
approval for more than 70% of
them, according to Ipreo.
EQUITIES
AHEAD OF THE TAPE | Steven Russolillo
Earnings Recession Is
Over, but Dont Expect
Investors to Celebrate
The earnings recession
is finally
over, but that
might not be
enough to
push the market higher.
With more than 90% of
S&P 500 companies having
reported results for the latest quarter, earnings for the
biggest U.S. companies are
finally growing again. Thirdquarter adjusted earnings
are projected to increase
2.9% from the same period a
year ago, according to FactSet. That marks the first
3.5%
sharply and even turned negative as recently as September before recently bouncing
back into positive territory.
The further out you go,
the more optimistic analysts
tend to be, said John Butters, senior earnings analyst
at FactSet.
History might be repeating itself. Earnings growth
this quarter is expected to
improve to 3.5%, followed by
11.4% and 10.5% in the first
two quarters of 2017.
The earnings-expectation
game will continue, meaning
the bar will inevitably be
lowered. But investors havent rewarded so-called
earnings beats as much as
they used to.
For the third quarter, Mr.
Butters found an S&P 500
companys stock price rose
0.7%, on average, in a fourday span following an earnings report that beat expectations. That is roughly half
the average gain in a comparable time frame over the
past five years. Earnings
misses were punished more
than usual, too.
The reason why could be
because stocks are near records. Even if earnings keep
rising, there is no guarantee
companies will be rewarded
by investors.
Bouncing Back
Expected earnings growth
for S&P 500 companies,
change from year earlier
15%
10
5
Analyst projections
0
2016
Source: FactSet
17
The need for speed after Donald Trump's surprise win drove investors into exchange-traded funds.
FAST
MOVERS
Mexico
Health care
Financials
DAILY
VOLUME
20 million shares
12 million shares
10
0
100
0
Oct.
Nov.
Nov.
$55
$300
$22
50
280
21
45
260
20
40
240
Oct.
DAILY
NET
FLOWS
200
0
Oct.
SHARE
PRICE
$400 million
Nov.
$800 million
400
400
Oct.
Nov.
1
Oct.
Nov.
Oct.
$2 billion
200
200
Nov.
19
Oct.
Nov.
Oct.
Oct.
Nov.
Nov.
Source: FactSet
Monday
Oct., expected
Earnings expected*
Estimate/Year Ago($)
Tuesday
Empire Manufacturing
Oct., previous
-6.8
Nov., expected
-3.0
Import price index
Sept., previous up 0.1%
Oct., expected
up 0.3%
Earnings expected*
Estimate/Year Ago($)
Business inventories
Aug., previous
up 0.2%
Sept., expected up 0.2%
Retail sales
Sept., previous
up 0.5%
Agilent
0.52/0.50
Aramark
0.48/0.44
Dicks Sporting Goods
0.42/0.45
TJX Cos.
0.87/0.86
Wednesday
Mort. bankers indexes
Purch., previous
up 1%
Refinan., prev. down 3%
EIA status report
up 0.6%
Crude oil
Gasoline
Distillates
up 2.4
down 2.8
down 1.9
Capacity utilization
Sept., previous
75.4%
Oct., expected
75.5%
Industrial production
Sept., previous up 0.1%
Oct., expected
up 0.2%
Producer Price Index
All items, Sept. up 0.3%
Oct., expected
up 0.3%
Core, Sept.
up 0.2%
Oct., expected
up 0.2%
Earnings expected*
Estimate/Year Ago($)
0.54/0.61
0.83/0.86
Housing starts
Sept., previous 1.05 mil.
Oct., expected 1.15 mil.
Earnings expected*
NetApp
Target
Thursday
up 54
Building permits
Sept., previous 1.225 mil.
Oct., expected 1.19 mil.
Consumer Price Index
All items, Sept. up 0.3%
Oct., expected
up 0.4%
Core, Sept.
up 0.1%
Oct., expected
up 0.2%
Estimate/Year Ago($)
Friday
Earnings expected*
Estimate/Year Ago($)
Foot Locker
1.10/1.00
* FACTSET ESTIMATES EARNINGS-PER-SHARE ESTIMATES DONT INCLUDE EXTRAORDINARY ITEMS (LOSSES IN PARENTHESES) ADJUSTED FOR STOCK SPLITNOTE: FORECASTS ARE FROM
DOW JONES WEEKLY SURVEY OF ECONOMISTS
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
COMMODITIES
ANDREY RUDAKOV/BLOOMBERG
Workers melt gold at a mine in Kazakhstan. Gold prices on Friday fell 3.3%, logging their biggest one-day loss in nearly three years.
Reversing Course
In the run-up to the election, gold prices tended to rise when
Donald Trump narrowed Hillary Clintons lead. But now that hes
won the presidency, gold prices are falling.
Election
Day
November
Election
Day
10%
8
6
4
2
0
Oct. 24
November
Election Drives
Metals Volatility
Metals prices have swung
wildly since Donald Trump,
who has pledged to curb Chinese imports while investing in
infrastructure, was elected
president of the U.S.
Copper prices on the London Metal Exchange are up
8.7% since the election result,
while aluminum and zinc were
up 2.7% and 2.4%, respectively.
Most metal prices tumbled
when it became clear that Mr.
Trump was headed to victory
because traders were unclear
about his policy positions.
Prices then rose as the market
considered the potential positive effect of Mr. Trumps call
for rebuilding infrastructure.
The swings underscore the
uncertainty about Mr. Trump
and what his agenda will mean
CURRENCIES
$63
million
Dollar Roars to Life After Election
The amount in paper profit made by
investors shorting shares of
Smith & Wesson Holding Corp.
after the stock fell 22% last week
BY CHELSEY DULANEY
MONEYBEAT
REUTERS
A board displayed quotes for the peso against the dollar in Mexico City last week.
terest-rate policy, show investors assign a 81% chance to
the Fed raising rates at its
meeting next month, according to CME Group data. That is
up from 32% at the start of
the month. Higher rates boost
the currency by making dollar
assets more attractive.
Following a two-year rally
in which the dollar rose more
than 20% against major peers,
many analysts had abandoned
calls for further dollar
strength this year, citing tepid
growth and the risk that a dollar rally would increase market turbulence. Before the
election, the WSJ Dollar Index
had slipped 2.4% this year as
investors accepted that U.S.
rates were likely to remain
lower for longer.
Now, investors are assigning a 58% chance that the Fed
will raise rates at least twice
by next November, according
to CME Group data.
Many analysts question
whether a sustained dollar
rally is in the cards, noting
that global growth remains
soft and that months will pass
before investors get a chance
to scrutinize a fuller Trump
economic package.
Brad Bechtel, a managing
director in foreign-exchange
trading at Jefferies Group,
warns that investors are get-
Rate Play
Some investors expect the dollar
to surge as the Fed raises rates.
92
90
88
86
84
J F M A M J J A S O N
Source: WSJ Market Data Group
www.ebook3000.com
ONLINE
WSJ
.COM
For more
MoneyBeat blog
posts, go to
blogs.wsj.com/
MoneyBeat
Currencies
U.S.-dollar foreign-exchange rates in late New York trading
Country/currency
in US$
US$vs,
YTDchg
Fri
per US$ (%)
Country/currency
Americas
Vietnam dong
Argentina peso
.0654 15.2985 18.2
Brazil real
.2918 3.4268 13.5
Canada dollar
.7385 1.3541 2.2
Chile peso
.001507 663.50 6.4
Colombia peso
.0003227 3098.50 2.4
Ecuador US dollar
1
1 unch
Mexico peso
.0478 20.9164 21.6
Peru new sol
.2938 3.403 0.3
Uruguay peso
.03557 28.1100 6.0
Venezuela b. fuerte .100150 9.9851 58.4
Europe
Asia-Pacific
Australian dollar
.7545 1.3254 3.4
China yuan
.1467 6.8151 5.0
Hong Kong dollar
.1289 7.7586 0.1
India rupee
.01480 67.554 2.0
Indonesia rupiah .0000748 13365 3.4
Japan yen
.009374 106.68 11.3
Kazakhstan tenge .002953 338.67 0.02
Macau pataca
.1251 7.9910 0.2
Malaysia ringgit
.2287 4.3726 1.6
New Zealand dollar
.7115 1.4055 4.0
Pakistan rupee
.00955 104.710 0.2
Philippines peso
.0204 49.000 4.6
Singapore dollar
.7079 1.4126 0.4
South Korea won .0008584 1164.91 0.9
Sri Lanka rupee
.0067696 147.72 2.4
Taiwan dollar
.03142 31.825 3.3
Thailand baht
.02825 35.400 1.7
in US$
.00004478
US$vs,
YTDchg
Fri
per US$ (%)
22332
0.8
Middle East/Africa
Bahrain dinar
Egypt pound
Israel shekel
Kuwait dinar
Oman sul rial
Qatar rial
Saudi Arabia riyal
South Africa rand
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MARKETS
About Face
The U.S. election upended investors assumptions across markets...
S&P 500 performance
2200
2150
By Colin Barr,
Chris Dieterich
and Corrie Driebusch
seem to point to a future in
which stronger growth will finally put ultralow interest
rates behind us, the so-called
reflation trade in which stocks
rise and bonds fall amounts to
a roll of the dice.
That is because investors
are betting that the full Trump
economic agenda will accomplish what the investment
world likes, such as tax relief
and deregulation, while largely
ignoring
the
potentially
growth-reducing impact of
other campaign promises, such
as much tougher stances on
trade and immigration.
The rush out of long-term
Treasurys and into industrial
stocks might already have
gone too far, portfolio managers warn.
For many money managers,
it is the latest sign of the markets eagerness to call an end
to the era of low rates, even
before a stronger recovery
takes root.
Trades based on rising
growth and inflation are probably going to work through Inauguration Day, but then we
have to start dealing with the
reality, said Scott Minerd,
global chief investment officer
at Guggenheim Partners LLC,
an asset manager with $250
billion under management.
Price declines in the U.S.
long bond, whose yield rose the
most last week in seven years
to 2.928%, have pushed the 30year yield near its likely level
Nov. 7-11
Best week
since 2014
s3.8%
2100
Election
Day
26
27
28
31
Nov. 1
2.2%
3600
2.0
3200
Election
Day
1.6
Monday
Tuesday
2800
Five-minute intervals
2400
Wednesday Thursday
10
11
5
10
J
M A
M J
2014
when the Federal Reserve completes its current tightening cycle in two to three years, Mr.
Minerd said. Rates are not going to continue to go straight
up, he said.
Yet investors embrace of
the reflation narrative is evident in the scramble out of assets that benefit from low rates
and into those deemed likely to
gain from higher rates.
Dispersion, measuring the
standard deviation of one-day
returns for S&P 500 industry
groups, surged on Wednesday
to the highest since 2008, ac-
2.118%
Highest yield
since January
1.8
15
16
14
15
16
Source: FactSet
OVERHEARD
CEOs have been cautiously
expressing their views about
a Donald Trump presidency.
PepsiCos Indra Nooyi criticized Mr. Trumps statements
about women. Companies
such as New Balance supported his antitrade stance.
Grubhub CEO Matt Maloney was more blunt, criticizing his employees for supporting Mr. Trump.
Please reply to this email
with your resignation because
you have no place here, he
wrote the day after the election.
The email quickly went viral. The hashtag #boycottgrubhub spread on Twitter.
Some suggested Mr. Maloney
should be fired.
He tried to apologize and
said he didnt ask for anyone
to resign if they supported
Mr. Trump.
Grubhub shares are down
by one-fifth since earnings
late last month on concerns
of slowing growth. Perhaps
Mr. Maloney was trying to
get his customers so angry
that they worked up an appetite.
Sales Over
Macys gross prot,
change from a year earlier
10%
5
0
5
10
15
FY 2015
16
Sales Probe
Takes Toll
On Alexion
It has been a difficult year
for Alexion Pharmaceuticals. It just got worse.
Alexion, a biotech company specializing in rare-disease treatments, said Wednesday it would delay filing
its quarterly report with the
Securities and Exchange
Commission because of
an internal investigation into
sales practices of Soliris, a
treatment for blood diseases.
The inquiry stems from allegations recently made by a
former employee that some
sales practices were inconsistent with company policies and procedures.
Alexion said in a statement that the company has
yet to discover any facts that
would require a restatement
of past financials. Still, the
situation is serious enough
that the company delayed its
filling and has retained outside counsel in its investigation. The risks to investors
are significant. Soliris sales
of $729 million accounted
for nearly all of the companys third-quarter revenue.
Meanwhile, an attempt to
diversify product offerings
has been slow to generate
results.
Alexion spent $8.4 billion
to acquire Synageva BioPharma last year. But two
drugs acquired in that deal
have yielded minimal sales.
Despite a more-than-30%
decline in the share price
this year, it is debatable
whether equity investors are
being adequately compensated for risk. Shares trade
at more than 20 times forward earnings, according to
FactSet.
That means an awful lot
continues to ride on Soliris
sales. Until more clarity
emerges on the sales investigation, Alexion shareholders
will have cause to sweat.
Charley Grant
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F
The Eollow
Onlinxperts
e
wsj.c
om/e at
x
perts
SQUARING OFF
Is Nuclear Power
Vital to Hitting
Emissions Targets?
Nuclear power is fizzling.
In recent years, many countries have largely stopped building new nuclear
plants and are looking elsewhere for power. In the wake of the Fukushima
disaster in 2011, Japan shut down all its nuclear reactors, though a few have
restarted since last year. Germany also moved to phase out nuclear power
by 2022. (China is a notable exception, with 20 reactors under construction.)
Market conditions heavily favor cheaper fuels such as natural gas over nuclear. And the regulatory climate favors other sources of energy. In the U.S.,
the Obama administration introduced rules requiring power plants to cut CO2
emissions 32% from 2005 levels by 2030, though President-elect Donald
Trump says he will drop that rule. While nuclear plants dont generate CO2,
companies can tap federal tax credits for investing in renewables. Whats
more, power companies can sell renewable electricity at higher prices because utilities need wind and solar supply to comply with state rules.
Meanwhile, fears about catastrophic nuclear accidents and unresolved
questions about waste storage linger.
With all that, some experts say nuclear plants are the best way to transition
to a low-carbon future until the price of renewable energy drops further. But
others say the plants are too risky and costly to keep in operation.
YES
Renewables Cant
Fill the Gap Yet
BY SUSAN TIERNEY
IM ALL FOR making smart
investments in energy efficiency and renewable energy. We should be aiming
to reduce carbon emissions
and limit the worst effects
of climate change.
At the same time, we
need to keep electricity affordable and accessible to regular folks and sophisticated energy
managers alike. That means nuclear power is
an essential piece of the equation, at least for
now. We need to retain the carbon-free power
produced at existing nuclear plants for as long
as they can safely operate.
A heavy load
In the near term, existing nuclear plants
are vital to hitting our carbon-reduction targets. We need them to help transition the
power system to a lower-carbon profile. And
getting it right economically is essential to
many peoples willingness to pull carbon out
of the system.
Consider: Todays nuclear plants provide
one-fifth of our power but nearly two-thirds
of carbon-free electricity. Yes, the costs of
wind and solar are dropping dramatically.
Thats great news. But for now, they provide
just 5% of our power supply. And scaling up
their market share takes time. Retaining existing nuclear power is good for consumers. A
nuclear plant operates around the clock, and
wind and solar only operate when the wind is
blowing and the sun is shining. In 2015, one
megawatt of wind capacity produced power
32% of the time, one megawatt of solar produced power 29% of the time.
In the long term, of course, the current
fleet of nuclear plants will eventually retire
and needs to be replaced by electric resources
that dont contribute to climate change. But
in the near term, any time a nuclear unit retires, its output is replaced by plants that
burn fossil fuel. Thats the reality we face.
Given all that, allowing existing nuclear
Dr. Tierney is a senior adviser at the
Analysis Group, an economic, financial
and strategic consulting firm. She can be
reached at reports@wsj.com.
No reward
Thats happening in large part due to the
effect of historically low natural-gas prices on
revenue in wholesale power markets. Whats
more, most of those power markets dont
compensate nuclear units for their carbon-free
generation. Companies that generate nuclear
power dont get credit for producing carbonfree electricity, the way they do for using renewables. And utilities that buy the power
dont get rewarded for buying that electricity.
Its also important to remember that nuclear retirements differ from other generating-unit retirements: Unlike other kinds of
traditional power plants, nuclear plants cannot practically be mothballed and then
Please see NUCLEAR YES page R2
Carbon Impact
NO
Nuclear Isnt
Cleanor Cheap
BY MICHAEL DORSEY
A RIDICULOUSLY expensive way to boil water!
Thats what a good
friend always remarked
when asked what he
thought about nuclear
power.
In October 2016, the
world experienced an unprecedented historical milestone. For the first time in history, the
International Energy Agency confirmed that in
the previous year renewable energy, largely
from solar and wind, became the biggest
source of new global electricity capacity, surpassing coal. This achievement received headline attention. In fact, solar and wind alone already have more energy-generation capacity
than nuclear power. By the end of 2015, the
world-wide capacity of wind-power generation
all by itself reached 432 gigawatts, while
global nuclear-power-generation capacity was
only 383 gigawatts.
Nuclear advocates have always faced a
tough reality. Questions of safety aside, the
Power Supply
2006
U.S. electricity generation
by source, 2006 vs. 2015.
As coal use has plunged,
natural gas and renewables
have risen; nuclear has
49%
been almost at.
Coal
Natural gas
Nuclear
Hydropower
Wind, solar,
other renewables
Petroleum
Other
Nuclear 16
Concentrated solar
26
Geothermal
40
Biopower
43
Solar photovoltaic
54
Conventional
natural gas
Unconventional
natural gas
20%
20%
19%
7%
493
1,001
33%
33%
475
Coal
2015
2%
2%
1%
6%
7%
1%
1%
Rising costs
Approximately a quarter of U.S. reactors
have underwater operating expenses. They
are cost-ineffective and noncompetitive at
current electricity-generation rates. Upsidedown nuclear finances are worsened as the
prices of solar- and wind-energy generation
continue to fall.
From California to New York and at many
points in between, like Illinois and Nebraska,
nuclear plants have been closed, are closing or
are scheduled to close. The Nuclear Energy Institute, the industrys leading trade association, has forecast that possibly an additional 15
to 20 nuclear plants are at risk of a premature
shutdown in the next decade due to financial
troubles. The U.S. Nuclear Regulatory Commission is currently overseeing the decommissioning of 19 closed nuclear reactors across the
country. Some countriesBelgium, Germany,
Spain and Switzerlandhave announced that
they are phasing out nuclear power entirely.
Some critics argue that closing nuclear
plants will increase the amount of fossil-fuel
use, and, by extension, the amount of greenhouse gases that are then released into the
atmosphere.
INSIDE
Should Federal Fuel-Economy
Standards Be Relaxed?
R2
Is It Time to Deregulate
All Electric Utilities?
R3
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YES
greatly reduced spending on gasoline, encourage innovation, increase the global competitiveness of U.S. auto makers and create
jobs in the auto industry.
All those arguments are still made today
by supporters of the fuel-efficiency mandates.
spending is the largest component of economic growth, fuel-cost savings translate into
broad-based economic gains and job growth.
NO
Supporting competitiveness
Second, to remain competitive, the Big
Three auto makers of Detroit must offer more
fuel-efficient vehicles. During the last global
spike in oil prices (when fuel-efficiency standards had essentially stagnated for years), the
Detroit Three found themselves overinvested
in gas-guzzling vehicles they couldnt sell.
This contributed to their financial downfall in
2009. Foreign auto makers, which offered a
wider variety of more fuel-efficient models,
were able to seize additional U.S. market
share. Maintaining strong fuel-economy standards will reduce the risk of market-share
losses for American auto makers when fuel
prices inevitably rise again, according to a recent study commissioned by Ceres.
In addition, weakening the standards would
put the Detroit Three auto makers at a competitive disadvantage by reducing the economies of scale that come from producing vehicles on global platforms, rather than using
different platforms for the domestic and international markets. Global platforms are crucial
because meeting global market demand for
more fuel-efficient vehicles will become increasingly important: By 2025, vehicles sold
outside the U.S. will account for about twothirds of American auto makers total sales.
Third, maintaining strong fuel-efficiency
standards locks in growth for innovative suppliers to the auto industry. The Ceres study
shows that supplierswhich employ 2 times
as many people as auto makers, and are making the bulk of investments in fuel-saving
technologystand to gain about $90 billion in
increased orders through 2025 under the standards. The requirements are creating new
markets and driving innovation. For example,
the use of carbon fiber and aluminum is expected to double in the next five years because of the standards.
Theres no point
Why did the administration impose these
onerous mandates in the first place? Proponents claim the mandates are critical for combating climate change. But the administration
itself has said that the regulations would have
a negligible impact on climatereducing
global temperatures by, at best, 0.02 degree
Celsius by 2100. A regulation that produces
only that meager effect is not critical for com-
Flawed studies
DANIEL ACKER/BLOOMBERG NEWS
Federal fuel-economy standards mandate much higher mileage for cars and light trucks by 2025.
Fleet Performance
Mileage Priority
Cost
40 mpg
Gas mileage
70%
Type of vehicle
69%
Car
30
Light truck
20
Size
64%
57%
Comfort
10
52%
Brand name
Style
0
1990
95
2000
05
10
Luxury 17%
40%
Source: AYTM online panel of
508 respondents, August 2016
Nuclear Yes
Continued from the prior page
brought back on line if need be, because of
the huge costs incurred even in a temporary
shutdown. This means that once a unit is retired, its electric-system benefits go away for
good. With this in mind, keeping a plant in
operation provides important insurance to
help keep us on course to reduce carbon
emissions.
And there are potentially benefits to nuclear in the long termif we continue invest-
Insufficient half-measure.
Gregg Davey
Nuclear No
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YES
NO
plicated than many policy makers had anticipated. As a result, the effort to restructure the
complex and essential business of electric utilities hasnt delivered the expected benefits.
In the mid-1990s, after industries such as
airlines were successfully opened to competition, it seemed like it was time for the musty
old electric-utility business to get a makeover.
By the end of the 1990s, about half of the
states either had already passed legislation to
open their utilities to competition or were seriously thinking about ituntil something
went seriously wrong. Beginning in 2000 and
continuing into 2001, the restructured power
market in California came apart at the seams.
An electricity-supply shortage led to blackouts, soaring prices for consumers and the
collapse or near-collapse of major investorowned utilities. States that hadnt yet passed
or implemented electric-competition laws
stopped in their tracks; others repealed their
laws or restricted competition in some way.
When the dust settled, 13 states and the
District of Columbia decided to forge ahead
with full retail deregulation, allowing all retail
customers to choose their suppliers and pay
market-based electricity rates. (A few states
adopted a hybrid approach, in some cases offering choice only to certain customers.)
So has the promise of lower prices materialized?
Failure to deliver
Innovation incentives
Source: ElectricChoice.com
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* *
YES
to the U.S. economy, or so blinded by its climate crusade it doesnt care that the attempt
to put oil-and-gas producers at a disadvantage
is essentially an attack on Americans standard of living.
Thanks to an abundance of domestic oil and
gas, the amount U.S. consumers spend on energy has fallen below 4% of total consumer expenditures this year for the first time in history, according to the U.S. Bureau of Economic
Analysis. In dollar terms, lower energy costs
over just the past few years have translated
into hundreds of billions of dollars in savings
for American households, dwarfing any taxpayer savings that could be achieved by repealing oil-and-gas tax breaks.
Tax reform might be fair if legitimate taxdeductible expenses were to be eliminated
across the board for all industries that currently take themincluding farmers, auto
makers, food producers, drug companies and
software firmsand if that were to be accompanied by reductions in the corporate tax
rates that applied to a broader tax base.
But singling out the elimination of legitimate tax-deductible production expenses for
one of Americas most essential industries
an industry critical to job creation, affordable
energy and even our nations national securityis the kind of misguided thinking we
cant afford.
Dr. Perry is a scholar at the American
Enterprise Institute and a professor of economics in the School of Management at the
University of Michigan-Flint. He can be
reached at reports@wsj.com.
They say tax incentives have fueled investments in unconventional production, which
has led to abundant supplies of oil and gas
and lower prices for consumers. They believe
the debate isnt really about taxes, but rather
about climate-change crusaders wanting to
punish the fossil-fuel industry.
NO
By Playing Favorites,
They Shift the Tax
Burden to Others
BY RYAN ALEXANDER
Potential savings
The intangible drilling costs deduction allows qualified oil-and-gas companies to immediately deduct all costs for designing and fabricating drilling platforms, including wages,
fuel, repairs, hauling and supplies related to
drilling wells and preparing them for production. Companies in other industries that construct plants, equipment or other productive
assets generally must capitalize all of the associated costs over time, typically based on
the assets useful life. By targeting subsidies
to oil and gas, tax rules like this disadvantage
other businesses that make equally important
contributions to our economy. The Joint Committee on Taxation estimates that repealing it
would save taxpayers $13 billion over 10 years.
Then theres the special percentage depletion allowance, which allows some oil-and-gas
companies to deduct more than they invest in
an asset, the very definition of a tax shelter.
Natural-resource developers can claim a depletion deduction for the costs of acquiring a
proportion of a resource as it is depleted. The
special allowance gives independent producers
a flat deduction of 15% of their gross income
from the first 1,000 barrels-a-day of production. Although the deduction is generally limited to the value of a propertys production,
nothing prevents a producer from deducting
more than its investment in the property. As
a result, oil-and-gas producers or royalty owners may pay zero tax on their income on certain properties. Owners of marginal wells are
provided with even more generous rules. Repealing this allowance would save taxpayers
more than $12 billion over 10 years, the Joint
Committee on Taxation estimates.
Misguided thinking
The anti-fossil-fuel crowd is either dangerously ignorant of the importance of fossil fuels
Deregulate Yes
Continued from page R3
To address this, Californiawhich has a
competitive wholesale electricity marketis
joining forces with utilities and grid operators
in neighboring states in an energy imbalance
market that allows for transfers of power
among participants. A free flow of electrons
across the West will allow grid operators to
balance supply and demand at a lower cost,
and allow California to permit increased penetration of renewable energy sources without
building unneeded capacity paid for by consumers. (The market already has saved California ratepayers more than $100 million
since late 2014, according to the California
electricity-grid-market monitor.)
As technology advances in other areas,
power markets will have to adapt further. For
example, many are looking forward to an era
of electric vehicles, but their widespread use
could put more strain on the grid, threatening
its reliability. One solution is time of day
pricing that incentivizes drivers to charge up
at night, when power usage and wholesale
prices generally are lower. An innovation like
that isnt likely to happen quicklyor at all
in a system where regulators set pricing rules.
Of course, many supply-and-demand challenges could be solved if the cost of storing
Picking winners
Oil powers more than 90% of the transportation sector, while natural gas heats almost
half of our homes, powers much of the manufacturing sector and now generates the largest
share of our electricity. Considering oil and gas
are indispensable to our economy, we should
be looking for ways to encourage more production, not looking for ways to punish producers.
The truth is, the fight over the industrys
tax deductions isnt really a fight about taxes.
Rather its a debate about the importance and
future of fossil-fuel production in the U.S.
For climate crusaders who view oil and gas
as a problem instead of the lifeblood of our
economy, rejiggering the tax code is seen as a
catalyst for restructuring the energy economy.
They began their assault on oil-and-gas producers under the guise of punishing the industry for windfall profits. In 2013, critics
called for eliminating industry tax credits and
deductions, maintaining that $100-a-barrel oil
was here to stay. It was inconceivable that the
industry could ever again face lean times.
But oil prices did fall. In fact, they crashed.
Two years of low energy prices have wreaked
havoc on the industry. U.S. independent producerswhich lean the most heavily on the tax
deductions and creditshave been hit hardest.
Since 2015, more than 100 oil-and-gas producers have filed for bankruptcy. More than
1,000 drilling rigs have been idled in recent
years, and more than 100,000 American workers let go. Profits for major firms in the industry have suffered. In the second quarter of this
year, Exxon Mobil Corp. reported its smallest
profit for any quarter since 1999 and Chevron
Corp. and ConocoPhillips each had a loss of
more than $2 billion in the first half of this
year. Not surprisingly, criticism over industry
profits has vanished as quickly as the peak-oil
theory. The underlying cause of the debate is
now fully in the open.
Tax breaks for the oil-and-gas industry have often come under the budget microscope but survived.
Breaking It Down
Federal tax subsidies for fossil-fuel production total $4.76 billion a year in forgone revenue, the U.S.
government recently estimated. Four of the biggest tax breaks and their annual cost:
FUELS
INVOLVED
WHAT IT IS
Expensing of
intangible drilling costs
Oil and
natural gas
Favored treatment of the many costs associated with tapping new oil and gas wells.
$1.63 billion
Domestic manufacturing
deduction for fossil fuels
Oil, coal,
natural gas,
lignite,
oil shale
This broad deduction for domestic manufacturing and production income effectively
provides a lower tax rate for earnings from
fossil-fuel production.
$1.05 billion
Oil and
natural gas
Effectively gives independent oil and naturalgas producers and royalty owners a lower tax
rate than they would get from cost depletion,
the type of depletion used by most other
industries.
$966 million
Accelerated amortization
period for geological and
geophysical expenditures
Oil and
natural gas
$288 million
PROVISION
Imperfect system
Restructuring hasnt lived up to all of its
promises. Business customers in restructured
states appear to have benefited more than
residential customers in terms of lower power
prices, perhaps because they have more incentive to shop around.
But in terms of keeping the cost of energy
production down, restructuring has worked.
Most important, no restructured state is repeating the mistake of spending billions of
dollars on nuclear power, which low-cost natural gas has made a money loser.
New technologies, innovation, green power
and competitive markets all go together. To
create a cleaner, more reliable and less expensive electricity grid, it is time to escape the
dictates of government officials and free up
competitive forces.
Dr. Kleit is a professor of energy and environmental economics at Pennsylvania State
University. Email him at reports@wsj.com.
ANNUAL
REVENUE COST
Deregulate No
Continued from page R3
trends in the price of natural gas, while customers in regulated states saw increases that
were 9 and 19 percentage points below that.
Why didnt things work out as hoped?
Many factors have played a role over the past
20 years, but a big factor is something policy
makers have no control overindustry structure. That is a function of the generation and
distribution technologies, and affects nearly
every aspect the business. For starters, electricity markets still need considerable economies of scale to operate efficiently, and restructuring hasnt provided sufficient benefits
to overcome the loss of efficiency that occurs
when monopoly utilities are dismantled.
sponded with price controls. When prices subsequently dropped, power sellers cried foul
and in some cases received subsidies. Such
concessions prevent the market from functioning well and have created a version of deregulation that doesnt work for anyone.
I would argue that the decision we face between market forces and regulation is on a
spectrum; it doesnt have to be an either/or
choice, as many believe. The best approach,
the one that fits the industrys structure most
closely and will provide the incentives needed
to take the electricity system into the future,
is likely to combine elements of both.
But we cant forget that regulation has kept
our electricity system stable for more than
100 years, through recessions and world wars,
and forced the industry to reduce pollution
from power plants significantly since the
1970s. Simply hoping that competition will
lead us to a clean-energy utopia is unwise and
likely to end in disappointment.
Retail markets were given a chance, and it
didnt work outno shame in that. But it is
time to learn from our mistakes and find a
balance between regulation and markets that
is a better fit for this business.
Dr. Rose is an independent consultant and
a senior fellow in economics at the Institute
of Public Utilities at Michigan State University. Email him at reports@wsj.com.
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NY
Natural gas
Energy mandates?
Shrinking Support
U.S. venture-capital investment in companies developing clean energy
technologies has been trending lower of late. Venture nancing by year:
$7 billion
6
5
4
3
2
1
0
03 04 05 06 07 08 09 10
11
12
13
14
15
Note: Includes venture nancing for biofuels, energy-efciency products and services,
batteries and other grid energy-storage devices, solar and wind power, recycling and some
water products.
Source: Dow Jones VentureSource
CME Group is a trademark of CME Group Inc. The Globe logo is a trademark of Chicago Mercantile Exchange Inc. All other trademarks are the property of their respective owners.
Copyright 2016 CME Group. All rights reserved.
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16*
* Through Sept. 30
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YES
It Gives Consumers
More Money and Cuts
Manufacturing Costs
BY STEPHEN MOORE
THE GREATEST stimulus to
the U.S. economy in the
past two years has been the
steep decline in oil prices.
Two years ago, the price of
oil was $105 a barrel. Today it is closer to $45
about a 60% decline.
Think about the boon to American consumers. In 2014, gasoline cost more than $4 a gallon at the pump in many areas of the country.
Now the price is closer to $2.50 a gallon.
Heres a rule of thumb. Every one-penny reduction in gas prices puts more than $1 billion
a year into the hands of consumers for them
to save or to spend on other things. So, that
$1.50 reduction in the price at the pump has
been a $150 billion a year stimulus plan.
What other policy could possibly carry that
kind of economic wallop? And whens the last
time you saw someone at the gas pump complaining about low gas prices?
Some will say that putting extra cash in
consumers pockets doesnt really help the
economy because they dont necessarily spend
what they save at the pump. But thats great:
Savings and investment are the seed corn of a
prosperous economynot consumption.
No shortage
We can also put aside the inane idea that
America is running out of oil. It was only a
few years ago that Barack Obama said in a
speech at Georgetown University: The United
States of America cannot afford to bet our
long-term prosperity, our long-term security,
on a resource [oil] that will eventually run
out. Paul Krugman wrote in 2010 that commodity marketsare telling us that were living in a finite world. And they both have Nobel Prizes! In reality, America isnt running
out of cheap oil, we are running into it.
If we continue to promote cheap, abundant
and reliable made-in-America energy, the U.S.
within six years can become not just energy
independent, but the energy dominant country
in the world.
Thats spectacularly good news for not just
our national economy, but our national security as well.
Mr. Moore is an economist at Freedom
Works, economic adviser to President-elect
Donald Trump, and co-author of Fueling
Freedom: Exposing the Mad War on Energy.
He can be reached at reports@wsj.com.
spend that money on other goods and services, which stimulates the economy, directly
via increased consumption and to some extent
indirectly through investment unrelated to oil.
The trouble here is figuring out just how
much purchasing powerand actual purchasingcomes from lower prices.
For one thing, it cannot be taken for
granted that refineries will always pass on
their cost savings to consumers at the pump,
so lower oil prices dont always translate into
lower prices for drivers. On the consumer
side, instead of spending the windfall income
from lower gasoline prices, households might
use it to pay off debts or increase savings.
As for cutting the cost of doing business for
manufacturers that use oil, its true that any
modern economy runs on energy. But energy
costs tend to be small relative to other costs
in production, with the exception of a few industries that use crude oil as feedstock. So,
businesses arent really saving that much under low oil prices.
More broadly, whatever stimulus the economy has gotten from lower prices has been
canceled out by the damage done to the oil
sector. Oil has become a much larger portion
of the American economy, so the economy is
much more vulnerable to oil-price declines.
While the oil industry thrives when prices are
high and positively contributes to growth of
the domestic economy, it pulls the economy
down when oil prices slump.
The result: The recent drop in oil prices has
meant a net zero effect on real growth in the
gross domestic product.
Also remember that the overall economic
effects of lower prices depend on the environment in which a major change in prices occurs. Part of the recent oil-price drop is due to
increased supply. However, there has also
been a decrease in demand because of slowing
growth in the global economy. Even if lower
oil prices had a modestly positive effect instead of a neutral one, it would make almost
no difference in the face of such a powerful
global trend.
NO
Other beneficiaries
No clear benefit
Low oil prices mean savings for consumers and businessesbut also hurt the U.S. oil industry.
U.K.
$8*
Germany
10.93
Brazil
10.63
Mexico
10.45
Japan
9.95
France
9.70
8.40
India
7.67
Australia
7.36
U.S.
Canada
0
1990
95
00
05
10
China
Russia
5.86
5.30
4.94
THE WALL STREET JOURNAL.
Yes | 64%
No | 36%
THE WALL STREET JOURNAL.
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BY ELENA CHERNEY
For two years, the Organization of the Petroleum Exporting
Countries has appeared powerless to stop a slide in prices
that has punished the economies of oil-dependent members, including Saudi Arabia.
Such a state of affairs calls
into question whether the oncepowerful cartel is still a relevant force in todays market.
The group reasserted itself in
September in
Algiers, saying its members agreed
to cut production. Details are to
be ironed out
in Vienna on
Jason Bordoff Nov. 30. But
doubts
remain as to
the likelihood
of a meaningful accord.
To explore
OPECs ability to act effectively, The
Helima Croft
Wall Street
Journal consulted
a
panel of experts: Jason
Bordoff, professor of professional
practice in
international
Bassam
and public
Fattouh
affairs and
founding director, Center on Global Energy
Policy, at Columbia University;
Helima Croft, head of commodity strategy, RBC Capital Markets; and Bassam Fattouh, director of the Oxford Institute
for Energy Studies. Here are
edited excerpts.
Still relevant
WSJ: Is OPEC still relevant?
MR. BORDOFF: In some ways,
Eyes on Vienna
ASSOCIATED PRESS
Qatars oil minister after an OPEC meeting in 1983, when the groups power was at a peak.
OPEC reasserted
itself in Algiers,
but details are to
be ironed out.
MR. FATTOUH: Assigning quotas for individual countries
has proved to be difficult, and
this time is no different. There
are countries like Iran and
Iraq, which have ambitious
plans to increase their productive capacity and believe that
other countries have taken
their market share over the
years. Bringing these countries back within the quota
system will prove to be the
most challenging.
Second, there are countries
like the U.A.E. and Kuwait that
have already embarked on expansion plans, but perhaps
will be more amenable to participate in modest cuts if this
is led by Saudi Arabia. Third,
there are countries like Nigeria and Libya that have been
suffering from output disruptions, but now they are seeing
some recovery in their output
and they are demanding special treatment.
Outside OPEC, the signals
from Russia about cooperating
on an output freeze or cuts
have been conflicting so far,
and in the past Russia didn't
abide by its output agreements with OPEC. Without
collective effort, Saudi Arabia
won't act on its own, and
without Saudi Arabia being on
board, there is no chance for a
meaningful OPEC agreement.
Modest prospects
WSJ: Do these tensions mean
that any deal isn't likely to be
meaningful?
MR. BORDOFF: Even if the
strongest version of the Algiers
agreement were actually implemented, the price support
would be meaningful but still
modest relative to the magnitude of the price collapse.
There seems to be no prospect
of much deeper cuts that would
be needed to return prices to
their previous levels.
OPECs ability to truly stabilize the market, as it did in the
1980s with deep Saudi production cuts, is further constrained
by the emergence of short-cycle U.S. shale-oil supply.
The sort of intervention being contemplated in Algiers is
quite different from longstanding public perceptions of
OPEC as a market stabilizer or
cartel. OPEC has shown it can
react in modest ways to mar-
OPEC
Rest of world
40
30
20
Climate change
WSJ: To what degree do you
10
0
2006
2007
2008
2009
2010
2011
2012
2013
2015
2016*
2014
global demand will likely remain steady rather than spectacular or slow. We remain
much more concerned with
peak demand over the coming
years rather than peak-supply
fears of last decade.
The push to reduce global
greenhouse-gas emissions provides an additional headwind
for demand growth, especially
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Peak demand
WSJ: Many analysts are pre-
dicting
that
oil-demand
growth will peak and then decline. What impact would that
have on OPEC?
MS. CROFT: Going forward,
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carbon price will make a big enough dent by itself in U.S. emissions to resolve the emissions
problem. MIT scholars Jesse Jenkins and Valerie
Karplus have shown that the binding constraints of politics keep legislated carbon prices
low. They document that only a few of the
worlds 22 jurisdictions with carbon taxes have
pegged them anywhere near the true social cost
of carbon at which point climate damages are
fully priced in. In short, carbon-pricing enthusiasts may be overexcited about the power of
prices to ameliorate the nations carbon problem.
Carbon prices should be treated as just one
useful tool among many. Indeed, there is another
side of the carbon-price equation that no one
should forget: the enormous flows of revenue
that will result from even a modest carbon tax.
Those revenue yields are critical to carbon
pricing. Not only can the revenue help ameliorate the ugly politics of imposing a new tax by
offsetting some of the burdens a tax would
place on consumers, producers and communities, but the money also would be available to
support further efforts to reduce greenhousegas emissions and ameliorate climate change.
My favorite use of, say, $30 billion a year of
any future U.S. carbon tax revenue: clean-energy R&D and technology development.
Mark Muro, senior fellow, Brookings
Institution
i