Professional Documents
Culture Documents
EXPERIENCE
ITS RICHNESS.
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The Overworked
Modern Manager
Andrew Browne
A Great Wall
Of Confrontation
MANAGEMENT | B1, B5
CHINAS WORLD | A2
WEDNESDAY, JUNE 29, 2016 ~ VOL. XL NO. 211
Whats
News
olkswagen agreed to
pay up to $14.7 billion
to settle emissions-cheating claims with U.S. regulators and owners of
nearly 500,000 dieselpowered vehicles. A1
World-Wide
Merkel warned Britain
it wouldnt be allowed to
cherry-pick beneficial
parts of EU membership
once it leaves the bloc, as
leaders gathered for a
summit in Brussels. A1, B1
Treasury chief Osborne
ruled himself out of the
race to succeed Cameron
as leader of the ruling
Conservative Party. A3
The Australian leaders
election pitch to deliver a
more tech-savvy economy
is proving a hard sell. A4
China told foreign business leaders it will avoid
steps that upset its capital
markets. A4
The U.S. economy expanded more than previously thought in the first
quarter, but underlying
trends suggest that it remains vulnerable. A7
A House panels report
on the 2012 Benghazi attacks faults the Obama administration for the lack of
a coherent strategy. A7
Retired Pope Benedict
made a rare public appearance alongside Pope Francis, a reminder of the presence of two living popes in
the Vatican. A4
Draghi urged major central banks to better coordinate their policies to tackle
ultralow inflation. A3
CONTENTS
Arts & Ent............. A12
Business & Tech. B1-6
Chinas World...........A2
Crossword.............. A12
Heard on Street. B12
Markets Digest.. B10
LATE ARRIVAL: Chinas first home-built passenger jetthe ARJ21, or Advanced Regional Jet for the 21st
centuryentered commercial service in a long-delayed debut. Above, the jet upon arrival in Shanghai. B1
VW Reaches Settlement
Over U.S. Car Violations
BY SARA RANDAZZO
AND MIKE SPECTOR
BY HIROYUKI KACHI
TOKYOThe yield on
Japans 20-year government
bond is nearing negative territory for the first time, as a
scramble for safety after last
weeks Brexit vote has further eroded what positive
yields remain in sovereignbond markets.
The U.K.s vote to leave
the European Union has
heightened expectations that
the Bank of Japan will undertake additional monetary
easing, putting further pressure on government-bond
yields, said Masahiro Ichikawa, a senior strategist at
Sumitomo Mitsui Asset Management.
We expect downward
pressure on yields of JGBs
with longer maturities, Mr.
Ichikawa said, with the 20year yield likely to hit zero
HEDGE FUNDS
AND TEACHERS
IN PENSION WAR
Rare Sight
At the
Vatican:
Two Popes
Street as a whole.
Her union federation is
funding a lobbying campaign
to eliminate the carried-interest tax rate on investment income earned by
many money managers. It is
trying to defeat legislation
that would increase the
charitable deduction in New
York state for donations to
private schools. And it has
filed a class-action lawsuit
accusing 25 Wall Street
firms of violating antitrust
law and manipulating Treasury bond prices.
Some pension funds have
withdrawn money from
hedge-fund managers criticized by the teachers union.
And some hedge-fund managers stopped making donations to advocacy groups targeted by Ms. Weingarten.
Hedge funds, reluctant to
buckle to the pressure, say
Ms. Weingarten is doing a
disservice to the teachers she
represents, because funds
Please see PENSION page A8
LendingClub is cutting
up to 12% of its work force
as it deals with issues related to its former CEO. B7
Stock Markets
Begin to Stabilize
Japanese Yields
Hit Record Lows
Merkel Warns
U.K. It Cant
Cherry-Pick
BY LAURENCE NORMAN
AND NATALIA DROZDIAK
ASIA EDITION
WSJ.com
EMBRACE: Retired
Pope Benedict XVI,
right, appeared with
Pope Francis on
Tuesday. The event,
which honored the
65th anniversary of
Benedicts
ordination as a
priest, highlighted
the uniqueness of
having two living
popes in the
Vatican. A4
Long sleeves granted leave from U.S.s Fort Hood; rollback time?
BY PAUL SONNE
U.S. Army Specialist Cortne
Mitchell, originally from
Staten Island, N.Y., moved to
Texas for his assignment
at Fort Hood and learned the
meaning of hot.
Spc. Mitchell and his fellow
petroleum-supply specialists
labor in summer temperatures
that can hover around 100 degrees Fahrenheit. Humidity
can reach 90%.
Maybe it was the heat.
Rolled sleeves
Maybe it was the humidity.
But the transplanted New
Yorker and his colleagues had
a vision: If they could only roll
up their sleeves.
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WORLD NEWS
I
SHANGHAIAlthough the
Great Wall has become
Chinas pre-eminent national
symbol of pride and
strength, the construction of
its soaring watchtowers and
crenelated parapets actually
reflected a moment of dynastic weakness.
And it was, of course, a
colossal failure. The present
structure was mostly built
during the later Ming dynasty in the
16th century
to keep out
nomad tribes
to the north.
Early
Ming emperors had found other ways to
pacify these groups: royal
marriages, barter trade and
other inducements. But as
the dynasty crumbled, hardline factions pushed for an
impregnable barrier. It was
necessary, they argued, to
protect Chinese civilization
against barbarian hordes.
Echoes of this history reverberate today in the South
China Sea, where China is
building massive fortificationsartificial islands
dredged from the seabedto
help defend a nine-dash
line claim that encircles almost the entire waterway
and reaches almost 1,000
miles from Chinas coastline.
U.S. Adm. Harry Harris
rails against the man-made
islands as a Great Wall of
Sand. Defense Secretary
Ash Carter warns that China
risks building a Great Wall
of self-isolation through actions that have alarmed its
neighbors.
In a matter of days, a
United Nations-backed court
in The Hague is expected to
CHINAS WORLD
ANDREW BROWNE
Chinese soldiers in front of a painting of the Great Wall at the Great Hall of the People in Beijing.
rule on a challenge to
Chinas claim brought by the
Philippines. The decision will
address an issue that has
preoccupied Chinese dynasties since antiquity: Where
does China end?
This has infuriated Chinese leaders; the presumptuousness of foreign jurists sitting in judgment upon what
China regards as a matter of
Chinese sovereignty is intolerable. Beijing has boycotted
the proceedings.
et theres an even
more fundamental issue at play, one that
dominated the debate in the
old Ming court and that has
rumbled on ever since: How
should China conduct its relations with the world?
Now, as then, the question is inextricably wrapped
up with Chinas perceptions
of itself. The way China re-
New Depths
1.5 %
1.0
0.5
0.5
J
VW
JAPAN
Continued from Page One
a key element of Prime Minister Shinzo Abes economic
program.
The mostly likely options
for the central bank, according to analysts, are expanding its asset-buying program
and pushing an interest rate
on some bank reserves further into negative territory,
from minus-0.1% currently.
Growing concern that
global central banks are running out of options to stoke
growth has driven a search
for assets considered safe
dards are continuing to investigate the auto maker for violations of state environmental
laws, including New York,
whose Attorney General Eric
Schneiderman said his office
would seek substantial additional penalties.
Tuesdays settlement marks
an initial bookend to a crisis
that has gripped Volkswagen
since U.S. environmental regulators said in September the company knew it was using illegal
software that allowed vehicles
to dupe government emissions
tests. Volkswagen has set aside
more than $18 billion to deal
with the fallout.
The software lets vehicles
pollute more on the road than
during emissions tests, emitting
nitrogen oxides at up to 40
times the allowable standard,
according to the EPA. Chief Executive Martin Winterkorn resigned soon after the revelations and Volkswagen has faced
a barrage of criticism from government officials, consumers
and shareholders.
As part of Tuesdays deal,
Volkswagen must get 85% of the
affected two-liter vehicles off
the roads or make them environmentally compliant by June
2019, or risk facing substantial
fines, court filings show.
The Wolfburg, Germanybased auto maker is prohibited
from reselling any vehicles it
buys back, either in the U.S. or
abroad, unless it fixes their
emissions.
Several lawsuits have been
filed in Germany on behalf of investors, including large pension
funds such as Calpers, the Norwegian state oil fund, and Nordea, a Swedish investment fund.
German courts have yet to rule
on allowing class-action suits to
go forward, a stricter process
than in the U.S.
Volkswagen has repeatedly
said that it sees no reason to
compensate European custom-
CORRECTIONS
AMPLIFICATIONS
A photograph of the Kingston Trio with the Arts & Entertainments Playlist column
on Tuesday was taken in 1965.
The caption incorrectly said it
was taken in the 1950s.
Readers can alert The Wall Street
Journal to any errors in news articles
by emailing wsjcontact@wsj.com.
P2HW181000-0-A00300-1--------AL
WORLD NEWS
U.K. Treasury chief to
focus on stabilizing
British economy after
EU referendum result
BY JASON DOUGLAS
LONDONThe man long
seen as British Prime Minister
David Camerons natural successor pulled out of the running to succeed his ally, as the
U.K.s vote to leave the European Union sows turmoil in
the countrys leadership.
U.K. Treasury chief George
Osborne ruled himself out of
the race to succeed Mr. Cameron as leader of the ruling
Conservative Party, marking a
reversal for one of Britains
most powerful politicians.
Mr. Osbornes announcement Tuesday came as candidates prepared their bids for
the partys leadership contest
that will also determine Britains next prime minister. Mr.
Cameron on Friday announced
plans to leave Downing Street
in the coming months after his
defeat in the U.K.s referendum
on continued membership of
the European Union.
Mr. Osborne, writing in an
article published in the Times
on EU membership. We had a
big and lively debate about it
within
the
Conservative
Party, said Mr. Osborne, adding that he saw the pluses
and minuses of having a referendum.
Mr. Osborne added that he
wasnt going in to the private
discussions I had with my
friends and colleagues in government, but that he ultimately agreed with the collective decision to hold it and
that the government stood by
that decision.
The pound has fallen
sharply and stocks have tumbled in the days since the referendum.
We are adjusting to life
outside the EU, and it will not
be as economically rosy as life
inside the EU, Mr. Osborne
told the BBC.
He said the U.K. financial
system is more resilient now
than it was in the past and the
nations public finances are in
better shape following six
years of belt-tightening, but
he warned that the next leader
is likely to need to raise taxes
and cut public spending before
the end of the year.
The political fallout from
the EU referendum is also roiling the main opposition Labour Party.
Labour leader Jeremy Corbyn lost a symbolic vote of
confidence among the partys
lawmakers on Tuesday by 172
votes to 40, ramping up pressure on him to resign.
Mr. Corbyn, who has faced
criticism for his lukewarm endorsement of the EU during
the campaign, has refused to
step down. His aides said
Tuesdays vote of no confidence wasnt binding.
Nicholas Winning
and Jenny Gross
contributed to this article.
BY TOM FAIRLESS
Icelandic soccer fans perform their now-famous Viking chant as they watch the Euro 2016 round of 16 match between Iceland and
England shown on a screen in Reykjavik, Monday. Iceland pulled off the biggest upset so far in the European Championship by
beating England 2-1 in the first knock-out round, continuing the improbable run of the smallest nation at the tournament.
EXIT
Continued from Page One
Brussels after the U.K.s referendum vote last Thursday, in
which British voters chose to
leave the bloc. All 28 EU leaders held talks Tuesday. Prime
Minister David Cameron was
scheduled to leave in the evening, though, and the other 27
planned to hold further discussions
without
him
Wednesday.
On his way into the summit,
Mr. Cameron, who will leave
office within a few months,
said he wanted the U.K. to
have the closest possible relationship in the future in
terms of trade and cooperation and security.
Because of course while
were leaving the European
Union, we mustnt be turning
our backs on Europe, he told
reporters. These countries
Counciltwo EU institutions
during a trip to Warsaw next
week for a North Atlantic
Treaty Organization summit.
They will discuss alternative pathways for the EU to respond to the message that was
sent by British voters and the
broader dissent across European electorates, the senior
administration official said.
As part of those discussions, Mr. Obama will encourage EU leaders to show
greater flexibility on the
economy to reduce unemployment and stimulate growth
and to further address the mi-
BY CAROL E. LEE
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HK JP
KO ML
SI IN UK
FR MN
PR
WORLD NEWS
BY ROB TAYLOR
ROCKHAMPTON, AustraliaAt the intersection of Australias coal and cattle country,
Prime Minister Malcolm Turnbulls election pitch to deliver
a more tech-savvy economy is
proving a hard sell.
On a recent day here, vacant shops and for-sale signs
loomed large. No buyers
showed up for an auction of
six properties. And many were
skeptical of Mr. Turnbulls recipe to revive an economy
slammed by the global commodities rout.
When the prime minister
talks about the future, about
innovation, in a town this
small, people are scared of
new, said Chontelle Brown, a
delicatessen manager who
fields as many as 20 job applicants a day. They just want
things to be back like they
were.
On July 2, voters will
choose between Mr. Turnbulls
conservative coalition and opposition leader Bill Shortens
Labor Party, which advocates
higher public spending on
health and education. A closely
watched Newspoll survey on
Monday showed Mr. Turnbulls
side with 51% versus 49% for
Prime Minister Turnbull, center, visited a farm in Rockhampton recently during the election campaign.
bulls campaign refrain that
theres never been a more exciting time to be Australian
due to the countrys proximity
to Asias emerging economies.
Mr. Shorten recently spent
his first campaign week in the
region, hoping to pull off a victory that seemed unlikely
when the race kicked off in
May.
However, both leaders are
struggling to engage voters,
mirroring the disenchantment
that has hit Western democracies from Europe to the U.S.,
driven by immigration, eco-
World
Watch
SOUTH KOREA
Seoul Prepares
$17 Billion Stimulus
Economic Growth
Picks Up Speed
Clerics Promote
Transgender Rights
Premier Li tries to
reassure foreign
executives worried
about economy.
Speaking in Chinese interspersed with occasional English
phrases, Mr. Li told the meeting of over 100 foreign business leaders that China faces
two principal problems: its vulnerability to the global slowdown and various internal inefprovide a ruling to help prevent
discrimination against transgender citizens.
We need to accept them as
Gods creation too. Whoever
treats them badly, society, the
government, their own parents,
are sinners, Mr. Naqshbandi said
Monday. His organization isnt
among the countrys major Islamist groups and political parties,
but the fatwa was discussed on
TV by the head of an influential
group of clerics, who said the
rights were already outlined in
Islam.
The pronouncement said
transgender men with male
physical characteristics can
marry women or transgender
women with female characteristics, and vice versa. The fatwas
authors wrote that those not
physically identifiable as male or
female cant marry under Islamic
law. They didnt specify the criteria for determining male or female characteristics in transgender people. Mr. Naqshbandi said
the fatwa doesnt deal with the
rights of people who have undergone sex-change surgery.
be gradual.
The executives, who have
been in similar meetings with
Mr. Li in past years, said the
premier appeared less like he
was speaking from a script,
more relaxed and more willing
to acknowledge Chinas economic problems than in years
past. He was a lot more sober
than last year, an executive
said.
Flanked by over a dozen
Chinese officials, Mr. Li spoke
of the importance of embracing
innovation, cloud computing
and big data, and said China
needs to have more links between its internet and the rest
of the world but still maintain
controls because were at a certain level of development, said
one executive.
EGYPT
BY MARK MAGNIER
SPLASH DANCE: Schoolchildren in a flooded street in Mumbai, India, Tuesday. Monsoon rains started slowly but have picked up pace.
Appear
Together
At Vatican
BY FRANCIS X. ROCCA
ROMERetired Pope Benedict XVI made a rare public appearance Tuesday alongside
Pope Francis, in a vivid reminder of a unique circumstance: the presence of two living popes in the Vatican.
The pope emeritus, as he is
referred to, looked frail but
spoke without notes at a Vatican ceremony marking the
65th anniversary of his ordination to the priesthood. It was
one of a handful of times he
has appeared in public since he
made history in 2013 by stepping down, becoming the first
pope to do so in six centuries.
The event follows recent
comments by Pope Benedicts
private secretary suggesting
that leadership of the church
is now shared by the two men.
While Pope Francis dismissed
such speculation over the
weekend, it reflects the tension inherent in the situation
and dissatisfaction among conservatives with the direction
of the current papacy.
Pope Benedict, 89, has honored the pledge he made at his
resignation to withdraw from
the world and live a life dedicated to prayer.
He lives in former convent
on a hill in the Vatican gardens. On the few occasions he
has been seen in public, he has
appeared increasingly frail, using a walker. Yet the former
pontiff, a renowned theologian, continues to write, receive visitors and play the piano.
At Tuesdays ceremony,
Pope Benedict gave a newly
published collection of his
homilies to his successor. He
stood repeatedly without assistance during the hourlong
ceremony in the Vaticans frescoed Clementine Hall.
Pope Benedict has continued to dress in white, as is traditional for popes, and is addressed as Your Holiness.
There are major differences
between the two pontificates,
with the current pope taking a
more liberal line on everything
from liturgy to sexual morality.
Pope Francis himself acknowledged tension Sunday
when he told reporters accompanying him on a flight back
from Armenia that he had
heard rumors of disgruntled
people complaining about him
to Pope Benedict.
And he chased them
away! Pope Francis said, noting that the retired pope had
promised obedience to his successor. Thats the kind of man
he is. A man of his word. An
upright, upright, upright
man!
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SAMSUNG.COM/BUSINESS
2016 Samsung Electronics America, Inc. Samsung, Samsung Galaxy S and Knox are trademarks or registered trademarks of Samsung Electronics Co., Ltd. Android and other marks are trademarks of Google Inc. Use
only in accordance with law. Other company and product names mentioned herein may be trademarks of their respective owners. Screen images simulated. Appearances of device may vary.
*Full Samsung Knox suite available for additional licensing fee.
P2HW181000-0-A00600-1--------AL
WORLD NEWS
MOHAMED AZAKIR/REUTERS
BY NOUR MALAS
A girl crossing a wooden plank over sewage water at a makeshift camp for Syrian refugees in Lebanons Bekaa Valley in March.
was free from many epidemic
diseases. But we have seen a
resurgence, said Mamun Malik, the World Health Organizations coordinator for
health security and regulations in a broad region that
includes the Middle East. We
have taken a step back and
our major focus is not elimination but just containment.
With renewed fighting in
parts of Syria and Iraq, ongoing clashes in Yemen and
Libya, and the start of the hot
and sometimes rainy summer
BY RAJA ABDULRAHIM
AND NOAM RAYDAN
Lebanons army raided Syrian refugee camps and politicians called for a border
clampdown, a day after a series of suicide bombings in the
predominantly Christian border town of al-Qaa.
Lebanese forces descended
on camps in the northeast on
Tuesday, arresting more than
100 people for not having legal
papers and confiscating motorcycles, state media said.
Several bombers had arrived
in al-Qaa on such vehicles on
Monday.
A curfew for Syrian refugees will be enforced there and
another mostly Christian town,
it said.
No group has claimed responsibility for the attacks, in
which eight bombers killed
five people. Two of the attackers blew themselves up near a
church.
The Sunni Muslim terror
group Islamic State has taken
responsibility for previous
bombings in Lebanon, mostly
targeting Shiite Muslim areas
in retaliation for the Shiite
militant group Hezbollahs military support of Syrian President Bashar al-Assad. Lebanese security forces have for
years battled Islamic State and
the al Qaeda-linked Nusra
BY VALENTINA POP
Lebanese soldiers patrolling the village of al-Qaa, near the Syrian border, on Tuesday.
Front in northern border areas
of Lebanon, where Islamic
State maintains some territorial control.
With more than one million
registered Syrians, Lebanon is
host to one of the largest Syrian refugee populations, according to the United Nations.
Many more live in the country
without official registration.
The influx has at times threatened to upset already fraught
sectarian tensions and destabilize the small, Mediterranean
nation.
The movement of the Syrian refugees should be con-
would be confirmed as president if Ms. Rousseff is impeached. Mr. Temer would finish out his predecessors
second term, which runs
through the end of 2018.
Many political analysts say
the trials outcome is virtually
a foregone conclusion, and
that Ms. Rousseff will be top-
UESLEI MARCELINO/REUTERS
BY PAULO TREVISANI
Dilma Rousseff in Brasilia earlier this month. She is battling to survive an impeachment trial.
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U.S. NEWS
Dissatisfaction with
Trump, Clinton could
affect presidential
race, new poll finds
PATRICK T. FALLON/REUTERS
BY PETER NICHOLAS
Libertarian presidential candidate Gary Johnson, wearing suit, in California on Saturday. The party expects to be on the ballot in all states.
some 83% of those who favored
Mrs. Clinton in a two-way race
stuck with her as their preference, while 13% split off and
threw their support to Mr.
Johnson or Ms. Stein.
Given the same choices,
89% of Trump voters stayed
loyal to him, while 9% moved
to Mr. Johnson or Ms. Stein.
The poll also shows that independent voters, who make
up about 11% of the total,
could play an outsize role in
BY BYRON TAU
WASHINGTONA House
panels report on the 2012 terrorist attacks in Benghazi,
Libyawritten by the Republican majorityfaults multiple
agencies in the Obama administration for the lack of a coherent strategy toward the
country and for failing to recognize growing security risks.
The House Select Committee on Benghazi, formed two
years ago to investigate the
Sept. 11, 2012, attacks on two
American diplomatic and intelligence facilities, also claims
the U.S. government was slow
and disorganized in responding to the attacks once they
were under way.
The attacks in Benghazi
have lingered as a political issue given that Hillary Clinton,
who was secretary of state at
the time, is the presumptive
Democratic presidential nominee. Democrats have long
charged that the Republican
committees work was aimed at
damaging her political aspirations.
The 800-page report says
Mrs. Clinton and top State Department aide Patrick Kennedy
Rep. Trey Gowdy (R., S.C.), left, chairman of the House Benghazi committee, conferred with Rep.
Elijah Cummings (D., Md.) during a committee hearing in January 2015.
manner worthy of the American peoples respect and worthy of the memory of those
who died. That is exactly what
my colleagues and I have
done, said Mr. Gowdy, a
South Carolina Republican.
But the committees final re-
BY JOSH MITCHELL
U.S. car sales have remained solid. Above, an Indiana Subaru plant.
long-term living standards.
The good news is that with
okay, but not great growth,
the economy has not developed imbalances that would
indicate a recession is coming
soon, Gus Faucher, deputy
chief economist at PNC, said
in a note to clients.
He said dangers loom, including the fallout from the
U.K.s vote to leave the European Union and a strong dollar
tied to investor jitters about
the global economy. Greater
uncertainty about the prospects
for global growth and increased
financial market volatility could
make U.S. businesses more cautious in hiring and investing,
and could make consumers less
U.S.
Watch
Ex-College Basketball
Coach
Summitt Dies
Justices Reject State
Pat Summitt, the former TenAbortion Restrictions nessee womens basketball
SUPREME COURT
The Supreme Court on Tuesday turned away efforts by Mississippi and Wisconsin to reinstate
laws requiring abortion doctors to
hold admitting privileges at local
hospitals, extending the reach of
Mondays ruling against Texas
rules for abortion clinics.
The brief, unsigned orders rejecting the state appeals reflected the first fallout of the
courts decision to strike down
Texas provisions that included
the admitting-privileges mandate
along with a requirement that
abortion clinics meet the strict
building standards of ambulatory
surgical centers. If implemented,
the Mississippi measure was expected to lead to the closure of
the states only abortion facility.
In separate cases, federal appeals courts in New Orleans and
Chicago had ruled against both
state measures. The laws were
part of a wave of regulations
approved by states after a 2007
Supreme Court decision upholding a ban on certain late-term
abortion procedures. Conservatives saw that ruling as a signal
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ARMS
Continued from Page One
rolling up sleeves? Army Chief
of Staff Gen. Mark Milley met
with Spc. Mitchell and agreed.
Th service declared Fort Hood
would begin a 10-day trial to
evaluate the practicality of
sleeve-rolling across the
Army.
Spc. Mitchell rolled up and
rejoiced.
The 10-day trial ended
Monday, and now Gen. Milley
will decide two main things.
First, should sleeve-rolling be
allowed Army-wide. And, if so,
how and when soldiers
sleeves should be rolled up.
One idea is to follow daylight
savings.
Ive been getting a lot of
calls from my friends, Spc.
Mitchell said. They just say,
Thank you, and stuff.
For years, members of the
Air Force, Navy and Coast
Guard have enjoyed the privilege of rolled sleeves in accordance, of course, with uniform
protocols and permission from
One of two billboards that went up around New Yorks Times Square attacking American Federation of Teachers leader Randi Weingarten and the teachers union.
Street asset managers it says
donated to organizations that
support causes opposed by the
union. It wanted union pension
funds to use the list to decide
where to invest their money.
The Manhattan Institute for
Policy Research, a think tank
that supports increasing school
choice and replacing definedbenefit pension plans with
401(k)-type plans for future
government employees, is one
of the groups to which donations were viewed unfavorably.
Lawrence Mone, its president, says the tactics amount
to intimidation. I dont think
that its beneficial to the functioning of a democratic society, he says.
After KKR & Co. President
Henry Kravis made the list in
2013, Ms. Weingarten got a
call from Ken Mehlman, an
executive at the private-equity firm and former chairman of the Republican National Committee.
Mr. Mehlman said KKR had
a record of supporting public
pension plans, according to
Ms. Weingarten.
Ms. Weingarten agreed, removed Mr. Kraviss name from
the list and invited Mr. Mehlman to talk about the firms
commitment to public pensions at a meeting in Washington with 30 pension-fund
trustees representing 20 plans
that control $630 billion in
teachers retirement money.
commanders.
The Air Force, for example,
allows airmen in battle-dress
uniform to roll sleeves only
when authorized by commanders. The rolled sleeve must
rest at, or within 1 inch of,
the forearm when the arm is
bent at a 90-degree angle.
Sailors have their own regimen. Sleeves may be worn
rolled up as directed by appropriate authority, the guide to
the Navy working uniform
reads, dictating a 3-inch-wide
sleeve band. The termination
point of the roll is approximately 2 inches above the elbow. This manner of sleeve
roll presents a short sleeve appearance and facilitates expeditious de-rolling and fastening
during
emergent
situations.
The Coast Guard, meanwhile, rolls its sleeves in accordion fashion. In 2014, the
Marines permitted sleeve-rolling after a yearslong prohibition of the practice, prompting
widespread elation.
The Army, though, kept a
ban on sleeve-rolling that accompanied the introduction of
$4 billion
$1.5 billion
$1 billion
$175 million
Employees Retirement
System of Rhode Island (2014)
$75 million*
$75 million
$60 million
LABORPAINS.ORG
PENSION
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PRESONAL JOURNAL
Scam or Fraud?
Incoming
tracks when a chunk of its customers are getting calls from the same
number and bans it temporarily.
Its not perfect, but its creator
Aaron Foss says its 3% error rate
is improving over time.
Update your phone. Android
devices currently allow pretty
deep call blocking. The Galaxy S7
even has Hiyas spam detection integrated. This fall, Apples upcoming iOS 10 software will give
iPhones new powers. You can already block numbers, so that callers go straight to voice mail. Soon
apps will be able to block callers
in bulkwithout having to dump
numbers into your address book.
Weapons of Mass-Robocalling
BY LUCETTE LAGNADO
Toni Staton Harris, left, who had an aggressive stage 1 tumor, and Dr. Amy Kusske, a surgeon who persuaded Ms.
Harris not to get a double mastectomy. Ms. Harris decided to have a lumpectomy instead, along with other therapies.
the future, says Dr. Katz. Studies
have shown this isnt correct for
the majority of women, he says.
While lumpectomy is a small localized surgery to remove the tumor, double mastectomies are
more elaborate, with higher risks
of complications, doctors say. After
the surgery, breast reconstruction
can require multiple procedures.
And women are left with no sensation in their breasts. Only a small
percentage of American women
have a genetic predisposition for
breast cancer, or an extensive family history of the disease, that
could help justify radical surgery
to remove a healthy breast.
At Santa Monica Breast Center,
a team of breast-cancer specialists
works together to help guide new
patients, in an approach known as
multidisciplinary care. The specialists meet among themselves to discuss the best treatment option for
each patient. Later the same day,
the patient is seen one after another by an oncologist, a surgeon,
a radiation oncologist and sometimes a breast-reconstruction sur-
geon.
The center wont refuse to perform a double mastectomy if a
woman insists on it, physicians
there say. But the doctors will
present various reasons for the
woman to choose breast-sparing
surgery instead.
Dr. Kusske, who used to work as
a breast surgeon in private practice until she joined Santa Monica
Breast Center two years ago, says
regularly gathering with other specialists has made her a better doctor. She says that after patients
meet with the team of specialists,
they are encouraged to make follow-up appointments, or contact
them by phone or email, if they
have additional questions or concerns.
The ability to obtain information from the entire team at the
same time and the ability to ask
questions of multiple team members are enormous benefits for
patients, says Gabriel Hortobagyi,
a professor of medicine at the University of Texas MD Anderson Cancer Center, in Houston, which has a
longstanding multidisciplinary-care
system for breast cancer. I cant
imagine our going back to the previous system and saying it is perfectly OK for someone to be
treated by a single specialist, he
says.
Doctors at Santa Monica Breast
Center say they are encouraged by
anecdotal evidence that some patients are changing their minds
about double mastectomies. The
doctors say they are analyzing data
to learn whether multidisciplinary
care can help reduce rates of the
surgery.
Multidisciplinary care for breast
cancer has long been practiced
abroad. A 2015 study in England,
published in the European Journal
of Surgical Oncology, found the
team approach reduced doublemastectomy rates, apparently because it stimulated discussion of
treatment options among various
specialists that helped curtail unnecessary surgeries and ensured
evidence-based practice.
Double-mastectomy rates also
have increased because of inflated
BY JOANNA STERN
P2HW181000-0-A01000-1--------AL
OPINION
REVIEW & OUTLOOK
uropean Union leaders had their first of- cade after the 2008 panic. Theyll struggle to
ficial opportunity Tuesday to consider cope with the fallout from reduced trade with
the U.K.s historic vote to leave the bloc. an economy Britains size, let alone the political
As they debate whether to acuncertainty arising from an
The EU missed one
commodate or punish the
acrimonious negotiation.
British for their choice, their
The best option for the EU
chance
to
reform.
It
overriding concern should be
is to offer London generous
shouldnt miss another. terms on trade, without the
to not miss another opportunity to reform the EU.
political, judicial and regulaPractical questions are
tory encumbrances that drove
likely to dominate this weeks meetings as the Britain out of the Union in the first place. That
EUs remaining 27 member states try to under- should bring a swift end to the economic uncerstand the mechanics of a British divorce. Prime tainty now surrounding Brexit, while proving
Minister David Cameron wont immediately in- that the EU is capable of accepting a democratic
voke the clause in Europes Lisbon Treaty that verdict without spite.
sets the clock running on a two-year negotiaThe EU should also see Brexit as an opportution over exit terms, leaving that task to his nitypossibly the last oneto prove itself casuccessor. German Chancellor Angela Merkel pable of reform. A growing number of Europeis right to say that the EU should wait for the ans already are shunning Brusselss bromides
British to act, which will allow passions to cool that more Europe is the solution to all the
and give European leaders a chance to think Continents problems. If Brussels doesnt offer
through the implications.
an alternative soon, the consequences of a new
Once negotiations begin, the remaining mem- anti-EU crack-up elsewhere will be even more
bers of the EU will have to decide on what terms serious than Brexit.
to keep trading with Britain. One view is to punSuch a liberal order will require the EU to
ish British voters in order to discourage other return to its original function as a common
countries from following London out the door: market, dedicated to the free movement of
high tariffs and long delays on a return to the goods, services and capital. It also will require
common market for products and services, and Britains Leave campaigners to stick to their
reduced freedom of movement for Brits.
most liberal ideals, especially on the free
This would be a mistake. Britain remains the movement of people. Although anxiety about
worlds fifth-largest economy and is a signifi- immigration motivated many Leave voters,
cant market for many European products. Britain will continue to need foreign talent and
Theres a reason German manufacturers are will also benefit from the ability of Brits to live
pressing for favorable terms for Britain.
and work in Europe. Free labor movement has
As for Britains exports, the last thing Euro- proved to be a crucial political safety valve for
pean leaders should want is to sock their own young people in particular when jobs are
fragile economies with higher import prices. scarce in some parts of the EU.
Britain became one of the EUs main business
A new burst of liberalism might help Euhubs because its laws and culture make it an ef- rope save the eurozone. The common currency
ficient provider of financial, information- is under strain as governments have struggled
technology and marketing services. Those ad- to make the labor-market, regulatory and tax
vantages wont disappear, and Europe still will reforms that are necessary for growth. The
need themdespite the inevitable French in- bloc needs an impetus for reform, which Brexit
stinct to try to boost Paris and Frankfurt as fi- can provide.
nancial hubs at Londons expense.
The EU can still thrive if it returns to its
Investors are making this case to anyone in founding liberal principles. Doing so will rethe political class who cares to listen. Mondays quire greater imagination and political will
sell-off in bank stocks across the Continent than weve seen in many years from European
prompting the Italian government to contem- leaders, but Brexit might be the spur they need
plate a 40 billion ($44.09 billion) capital injec- to change themselves and reform their union
tionis a warning that Europes economies and before other member states start following
its financial system remain weak nearly a de- Britains lead.
mid so much post-Brexit gloom about Europe, Sunday brought some especially
welcome news in the unlikely vehicle of
a Spanish election. Voters increased support for
Prime Minister Mariano Rajoys center-right Popular Party (PP) while rejecting the bid for power
by the left-wing Podemos movement.
The election improves on the muddled results
of six months ago when no party won a majority.
This time the PP increased its seats in the new Parliament to 137 from 123. The Socialists retained
second place with 85 seats, blocking Podemoss
attempt to become the main party of the left. Markets responded with relief, pushing the Spanish
10-year government bond yield down 0.17 percentage points, the sharpest drop since 2014.
Mr. Rajoy is short of an absolute majority, but
this is nonetheless a case of sound policy rewarded. Since taking power in 2011, the PP has
ignored the Keynesian councils of Brussels and
Washington in favor of supply-side economic reforms. Mr. Rajoy has cut personal and corporate
taxes and simplified the tax system, trimmed
civil-service spending and made it easier to hire
and fire Spaniards.
And what do you know, faster growth has followed. Spains economy grew 3.2% last year and
about 3% over the past eight quarters, according
to the European Unions statistical agency, while
the jobless rate has fallen to 22.7% from a peak
of 26%. This Spanish revival is all the more re-
he free world got a boost Tuesday as and South Korea or partners like India. The excepAmerican, Japanese and South Korean tion is China, which was invited for the second
forces completed their first trilateral time despite its misbehavior at sea and support
missile-defense drill in waters
for North Korea.
A strong show of unity
off Hawaii. Deepening such coThe Obama Administration
operation is vital for defending
insists
Chinese participation in
by the U.S., Japan
America and its partners
Rimpac can help make Chinas
and South Korea.
against North Koreas nuclear
navy more professional while
capabilities, and for putting
soothing Chinas fears that the
China and Russia on notice that
U.S. wants to keep it isolated
the U.S. wont be muscled out of Asia.
and weak. Maybe. But at least Beijing, which has
A trilateral exercise would have been hard to berated Seoul for talking about deploying the U.S.imagine a few years ago, when relations between made Thaad missile defense system, will notice
Tokyo and Seoul were strained by territorial and this weeks drill. China staged its own joint mishistorical disputes. But an intensifying threat sile-defense drill with Russia last month.
from Pyongyang, Beijings aggressiveness in the
China knows that its North Korean client is
East and South China Seas, and some statesman- the reason U.S. allies in Northeast Asia are inship from Japanese Prime Minister Shinzo Abe vesting in better defenses, but Beijing remains
and South Korean President Park Geun-hye have unwilling to pressure Kim Jong Un. Last week the
transformed the relationship.
North Korean dictator fired another midrange
In 2014 the two sides agreed, after years of ballistic missile capable of flying 2,000 miles and
wrangling, to begin exchanging information hitting targets as far as the U.S. territory of
about North Korea through their U.S. friends. Last Guam. Thats the fifth midrange missile test since
year they settled years of disagreement over so- April, following Januarys nuclear test and Febcalled comfort women, the Koreans taken as sex ruarys launch of an intercontinental missile that
slaves by Japans imperial army in World War II. could threaten the mainland U.S.
Tokyo reiterated apologies and arranged paySouth Koreas security depends on an early
ments for victims, while Seoul deemed the resolu- decision to deploy Thaad. Japan needs to do the
tion final and irreversible.
same, augmenting its U.S.-made X-band radar,
This weeks drill was staged before the start of deployed in 2014, with Thaads powerful interthe Rim of the Pacific (Rimpac) naval exercise, the ceptors. As a South Korean official said recently,
largest in the world, hosted by the U.S. every other upgrading missile defenses in Northeast Asia is
year in Hawaii. This year a record 27 countries are a live-or-die matter. All the more reason to
participating, almost all U.S. allies such as Japan cheer this weeks drills.
Of Trumpkins
And Brexiteers
Ever since the U.K.
voted Thursday to
leave the European
Union, theres been no
end of commentary,
favorable and invidious, comparing the
GLOBAL
Leave campaign to the
VIEW
a n t i - e s ta b l i s h m e n t
By Bret
wave that swept the
Stephens
GOP this spring. In
one respect the comparison is apt. Both the Trumpkins
and the Brexiteers aimed their fire at
a toothless opponentand the wrong
one to boot.
I lived in Brussels at the turn of the
century and wrote about European politics for this newspaper. That the EU
can be meddlesome, unhelpful, self-important and self-deluded goes without
saying. Entire departments seem to
spend their days coming up with picayune but expensive rules that cry out
to be mocked. I once devoted a column
to an EU directive governing something
called the stream of household weee.
This stands for waste in electrical or
electronic equipment, not that anyone
in Brussels found it funny.
But pedantic Miss Mary Bennet of
Pride and Prejudice is not Big
Brother of 1984, and tedious directives on mind-numbing subjects do not
make the EU another Soviet Union.
The EUs bureaucratic armthe Council and the Commissionemploys
about 33,000 civil servants. The U.K.s
civil service has 410,000 employees,
not counting an additional four million
public-sector workers. The EUs budget
last year came to less than $160 billion, divided among 28 countries. Britains was $1.15 trillion.
If theres a superstate, its in Westminster, not Brussels. And the EU, despite its countless flaws, is not some
colossal squid crushing the U.K. in its
powerful tentacles. Britain will likely
get most of what it wants in its renegotiation with the EU. The Europeans
wont send in the tanks, Brezhnev-style,
to crush this English revolt.
And then what?
A British taxpayer making more
than 43,000 ($57,000) pays a crushing tax rate of 40%, along with a 20%
value-added tax on every item he purchases. The average wait time for an
operation with the National Health
Service is 10 weeks. The energy bill for
an average British household jumped
by 30% between 2011 and 2015, mainly
to support David Camerons green-energy fixation.
These problems are British, not EUmade. If the result of Brexit is to force
London to dial down its own big-state
tendencies, so much the better. The likelier result is that the next prime minister will have to spend his political capital trying to keep the United Kingdom
together and hoping a Brexit-related recession isnt pinned on him. American
conservatives who think Brexit will pave
the way for the return of Margaret
Thatchers spirit may find themselves
P2HW181000-0-A01100-1--------AL
OPINION
By Robert Pape
And Walker Gunning
he transcript of Omar
Mateens call to 911 during the Orlando, Fla.,
nightclub
shooting
paints a man on an unshakable mission of terror in the
name of Islamic State. While the
call is a chilling reminder of
Mateens horrible act, it isnt the
only window we have into the
killers mind. Equally disconcerting
are the selfies that have emerged
showing Mateen in poses more
common to a narcissistic teen than
an Islamic State operative.
REUTERS
Omar Mateen, who killed 49 people in Orlando, Fla., and praised Islamic State.
made by the groups al-Hayat Media Center, are glossy, carefully
scripted and designed to recruit
Westerners. One of the most prominent videosAl-Ghuraba (The
Stranger): The Chosen Few of Different Landsfollows a popular
12-step screenwriting technique
called the Heros Journey, first
formulated by a Disney executive
and familiar to any Star Wars
fan. After the films protagonist,
Andre Poulin, decides to give up an
idyllic life in Canada to follow the
call of adventure, the video tracks
his journey as he arrives in Syria,
takes the name of Abu Muslim,
joins Islamic State, and dies fighting for the group.
The video ends with a softly focused shot of Poulin talking, as if
from beyond the grave. Hes calm,
has probably lost its punch, Joe Biden reached for it in a speech in
Ireland on Friday in which the vice
president reproached reactionary
politicians and demagogues peddling xenophobia, nationalism, and
isolationism.
Its un-American, Mr. Biden
said, meaning xenophobia rather
than the British vote, which of
By Josef Joffe
Robert Thomson
Chief Executive Officer, News Corp
Gerard Baker
Editor in Chief
William Lewis
Chief Executive Officer and Publisher
P2HW181000-0-A01200-1--------AL
He Resolved to Be Modern
REVIEW
KAREN WILKIN
New York
For lovers of American modernism, Stuart Davis (1892-1964) is a giantan inspired
colorist whose radiant, muscular paintings
translate French Cubism into an unmistakably American, richly varied, vernacular idiom. So Stuart Davis: In Full Swing, the
well-chosen survey of more than 80 significant works now at the Whitney Museum of
American Art, is reason for rejoicing.
Davis abandoned high school at age 16 to
join the art classes of the Ashcan School
painter Robert Henri, a family friend. Henri
urged his students to make the life of their
time their subject. Davis, his precocious star
pupil, enthusiastically embraced saloons,
vaudeville and gritty street lifeand along
the way discovered jazz. For the rest of his
life, Daviss art would embody the cacophony
of everyday modernity.
At 20, Davis showed Ashcan School-type
watercolors in the juried American section
of the legendary 1913 Armory Show. But the
exhibitions radical Gauguins, Van Goghs, Picassos and Matisses made the young painter
question his own approach. He resolved, he
said, to become a Modern Artist, and
spent the next decade or so in a self-imposed apprenticeship to the European vanguard, assimilating their intense color, simplified planar structure, and bold disregard
for the literal. By the early 1920s, he was
painting admirable, personal, Cubist still
lifes. Next came confrontational images
seemingly constructed from the labels and
packages of cigarettes, rolling papers and
loose tobacco, illusionistically painted but
larger than lifeturning the fact of Cubist
collage into a new type of fiction.
Stuart Davis: In Full Swing begins with
these tobacco still lifes, grouped with
over-scaled portraits of such objects as
light bulbs and mouthwash bottles. The exhibitions curatorsBarbara Haskell, of the
Whitney, and Harry Cooper, of the National
Gallery, Washingtonsee these innovative
improvisations on ordinary modern accouterments, with their shifts in scale and their
letters and words, as signaling the start of
Daviss maturity. They describe his work as a
synthesis of popular culture and abstraction
that anticipates both Pop art and geometric
Davis translated French Cubism into an unmistakably American idiom; above: Fin (196264).
color painting. Yet, its worth noting that,
unlike the Pop artists, Davis presented his
experience of the vernacular in the language
of high modernism, not of advertising.
Daviss most adventurous early series, the
four Egg Beaters (1927-28), follows. Remarkable for their high-key palette, their unpredictable, abstracted shapes and their com-
Shown are todays noon positions of weather systems and precipitation. Temperature bands are highs for the day.
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Distress
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2016 Dow Jones & Co. Inc. All rights reserved. 6DJ3313
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49 Last word of a
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50 Goddess of
fertility
51 It may be taken
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same cloth
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59 Fruta tropical
60 Just barely
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64 Williams in
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P2HW181000-0-B00100-1--------AL
More in Markets
A Brexit Boon
For VIX Traders
MARKETS | B7
MONEY &
INVESTING
Wait for
Hope to Die
Before a
Brexit Buy
INSIDE:
A youngster posed with a Warcraft character in Beijing earlier this month. The movie is performing better in China than in the U.S.
looking for an edge in China.
Having Chinese partners
on board brings the level of
support to a Hollywood film
that those without cannot
compete with, said Fu Yalong,
research director of EntGroup,
a film data company based in
Beijing.
For Warcraft, almost everything about how it was
marketed was a study in contrast with the usual obstacles
Hollywood films face in China.
Warcraft was allowed to
open at an opportune time,
right after national college-entrance exams and during the
three-day Dragon Boat Festival. That made it a prime holiday destination for a generation of videogamersoften
with their dates.
Wanda helped make sure
that anyone who wanted to
see the movie could. Its theater chain, Chinas biggest, offered nearly 80% of its scheduling slots to Warcraft on its
opening day, and more than
70% later that weekend.
Other chains in which
Wanda has interests also overwhelmingly showed Warcraft on its screens.
Lin Hao drove across Bei-
Finding Favor
U.S.
Warcraft
June 1012
$65.1 million
24.2
June 2426
June 10-12
22.4
BY LAURA MILLS
Overloads Managers
BY RACHEL FEINTZEIG
same time.
Plenty of managers feel like
Mr. Welsh these days. As companies flatten hierarchy and
preach collaboration among
their ranks, a growing share of
bosses time is spent coordinating, directing traffic and
overseeing employees who
may or may not report directly to them. Managers and
executives complain that the
push for teamwork, innovation
and speed has left them little
time to do real work.
Researcher Rob Cross has a
name for the phenomenon:
collaborative overload. Often
top performers, these overloaded workers are put on
high-value projects and sought
by co-workers, but they can
become bottlenecks when too
many projects run through
them. Companies like General
Motors Co. and health insurer
Please see WORK page B5
P2HW181000-0-B00200-1--------AL
INDEX TO BUSINESSES
Etihad Airways...........B6
Fitbit............................B4
Qatalyst Partners.......B3
Qatar Airways.............B6
B
Baoneng Group.........B12
BlackRock, Inc.............A3
B&N Bank....................B2
Bombardier..................B1
C
Charles Schwab .......... B4
Chengdu Airlines ........ B1
China Vanke..............B12
C.H. Robinson
Worldwide.................B4
Cigna............................B5
Commercial Aircraft
of China.....................B1
D
Dalian Wanda Group .. B1
Davis Polk &
Wardwell...................B7
Delta Air Lines ........... B6
Deutsche Bank..........B12
E
Electrolux....................B6
Elliott Management...A8
Embraer.......................B1
Emirates Airline ......... B6
G
General Electric .......... B1
General Motors...........B3
H
Herbalife ..................... B2
Home Depot................B4
Hunan TV & Broadcast
Intermediary.............B1
K
KKR ............................. A8
Koninklijke...................B1
L
Lionsgate
Entertainment..........B1
Lippo............................B6
Liquid Telecom............B6
Lyft.........................B2,B3
Lyons Wealth
Management ............ A8
ProShares....................B7
R
Red Hat.......................B4
Rockwell Collins..........B1
Royal Bafokeng
Holdings....................B6
Russneft......................B1
S
Sony Music
Entertainment..........B2
SunTrust Banks ........ B12
T
Tata Steel....................B7
Tencent Holdings........B2
Third Point..................A8
Tudor Investment.......A8
McDonnell Douglas.....B1
MDM Bank..................B2
Microsoft.....................B3
Mitsubishi Aircraft.....B1
VelocityShares............B7
Vodafone Group..........B6
Volkswagen.................A1
Naver...........................B9
PayPal Holdings..........B2
ZTE..............................B3
INDEX TO PEOPLE
A
Gutseriev, Mikhail......B1
Adornato, Paul............B8
Asness, Cliff...............A8
Bullard, James............B9
Burns, Clif.................B12
Ichikawa, Masahiro....A1
Ireland, Peter..............B9
Calderoni, Frank..........B4
Clarke, Andrew...........B4
Cooper, Steve..............B2
Cryan, John...............B12
D-F
Draghi, Mario..............A3
Duy, Tim......................B9
Faucher, Gus...............A7
K
Kocher, Karen..............B5
Kravis, Henry..............A8
N
Newell, Angela ........... B4
Nouvel, Jean...............B8
Q
Quattrone, Frank ........ B3
S
Singer, Paul.................A1
Tom, Carol.................B4
Turnbull, Malcolm.......A4
Levine, Derek..............B2
Loeb, Daniel................A1
Lutz, Dave.................B12
Mancini, Eric.............B12
Zerella, Bill..................B4
JET
Continued from the prior page
dents at home and abroad.
Chinas goal at this point is
to prove to the world that its
homegrown aircraft is reliable,
competitive and safe, said
Derek Levine, an adjunct professor at the City College of
New York and author of The
Dragon Takes Flight. He
added: The CAACs reputation
is on the line.
The civil-aviation administration didnt respond to a request for comment.
Chinas commercial-plane
makers have struggled to close
the gap with Western aerospace companies, despite state
largess for a project of national prestige. Analysts estimate the ARJ21 project racked
up billions of dollars in costs
since development began in
2002. The ARJ21 made its first
flight in late 2008, three years
behind schedule.
Commercial Aircraft Corp.
of China, also known as Comac, has faced similar problems in its development of a
larger jetliner, the C919. A prototype of that 158-to-174 seater
was completed in November,
years behind schedule.
Another stumbling block for
the ARJ21 is its lack of U.S.
and European certification,
which means it cant be exported or flown to major
Western markets. Chinese regulators certified the jet in late
2014, allowing it to operate
domestically and in certain de-
A
Alibaba Group.............B2
Alphabet......................B2
American Airlines
Group ........................ B6
Apple...........................B4
AQR Capital
Management ............ A8
Artists like Taylor Swift have urged Congress to change law that protects sites such as YouTube.
a penny ($0.0008) per play,
and less than six one-hundredths ($0.0006) of a penny
for user-generated content,
down roughly 20% from a year
ago, people familiar with the
matter said.
The free tiers from SoundCloud and Spotify, by contrast,
pay at rates up to six times
the rate YouTube offers for
RUSSIA
Continued from the prior page
rubles ($1.8 billion at the time)
from 37.7 billion rubles.
There were tough conditions in 2014, said one person
familiar with the deal with
Sberbank. The ratio of debt to
Ebitda [of Neftisa] was about
five or six, referring to debt
to cash flow.
Mr. Gutseriev asked Sberbank for a ruble loan, one person said. The bank offered him
a loan in U.S. dollars instead,
but German Gref, the longtime
CEO of Sberbank, personally
requested that Mr. Gutseriev
hedge those risks against a
possible drop in oil prices, according to a banker.
The hedge allowed Neftisa
to sell millions of barrels of its
oil at $85 a barrel. It was completed in July, but by November that year oil prices dipped
well below $85, and Mr. Gutseriev started raking in cash.
A representative for Mr.
Gutseriev told the Moscowbased RBC news agency that
the hedge earned $700 million.
A person familiar with the deal
said the profit was closer to $1
billion. While most Russian
billionaires have taken a hit as
commodities prices suffer, Mr.
Gutseriev jumped 20 places in
MOVIE
Continued from the prior page
opening weekendWanda offered free or discounted movie
tickets at its theaters. The
campaign filled 1.71 million
seats in its theaters over three
days, Wanda said.
State regulators usually
give Hollywood studios only
about a months notice when
they set a movies release
date, leaving little time for
marketing campaigns. In the
case of Warcraft, Legendary
said
26
well-established
brands committed to creating
commercial campaigns before
the release date was set, from
Ping An Insurance to dairy giant Mengniu.
A person familiar with the
matter said such sponsors
other assets.
While B&N isnt the only
one consolidating, its growth
has been particularly fast compared with most competitors.
However, analysts say some of
those assets could prove more
trouble than they were worth.
Most of these [banks]
werent in very good condition, and what they are trying
to do is revitalize them and
put them in a single entity
but when you do this so rapidly its hard to succeed, said
contributed about $200 million in brand support, a sizable lever for Legendary,
whose typical marketing budget is about $6 million or $7
million a movie, the person
said.
Hunan TV, which has co-financed a series of films with
Lionsgate, has already promoted Now You See Me 2
for months, running footage of
the films lead characters during a satellite-television Lunar
New Year extravaganza in February, one of the countrys
most-watched shows.
With about 80% of movie
tickets bought online in China,
the backing of one of Chinas
internet giants represents
something of a Holy Grail for
Hollywood studios.
Alibaba Pictures Group Ltd.,
the film arm of Alibaba Group
Holding, an investor in Para-
MAXIM ZMEYEV/REUTERS
These indexes cite notable references to most parent companies and businesspeople
in todays edition. Articles on regional page inserts arent cited in these indexes.
BUSINESS NEWS
P2HW181000-0-B00300-1--------AL
TECHNOLOGY
Sanctions Relief
For ZTE Extended
HONG KONGThe U.S. government decided to extend the
temporary lifting of sanctions
on ZTE Corp. through Aug. 30,
as the Chinese maker of telecommunications equipment
tries to rebuild its reputation
after being accused of violating trade rules.
The U.S. Commerce Department announced the decision
in a statement posted online
Monday. It didnt cite specific
reasons for the decision. The
extension of temporary relief
is good news for ZTE,
which has been scrambling to
cope with the potential damage on its global operations
and brand image from its alleged export-control violation. In April, the company replaced
three
executives,
including its chief executive.
The U.S. imposed trade
sanctions on ZTE in early
March, alleging the company
violated rules restricting exports of U.S. technological
goods to Iran. The move hindered the Chinese companys
ability to procure U.S. components and software and created tension between Beijing
and Washington.
But in late March, just two
weeks after announcing its
he world economy is
again being tested by
an unexpected shock
following Britains vote to
exit the European Union. The
pound sterling and stock
markets globally have been
hammered. What does it
mean for technology startups
and venture capital, which
can sometimes appear virtually immune from macroeconomic forces?
On one level, it is simple:
the Brexit vote means companies large and small are in
for a period of uncertainty.
And such times are bad for
the kinds of speculative investments that are the lifeblood of startups.
In some respects, the tech
industry has been preparing
itself for an event like this
for a while. Scarred by the
big crash of
2000, many
who were in
the industry
then have a
muscle memKEYWORDS
ory for what
CHRISTOPHER can follow.
MIMS
Venture investors like
Benchmarks
Bill Gurley have been sounding the alarm for some time
on outsize valuations, clearly
trying to tap the brakes on
an overly exuberant funding
environment.
If large institutional investors become more risk averse
and flee to safe, low-yielding
investments, theyll devote
less money to venture-capital
firms. That would constrain
the availability of capital for
startups.
Most at risk will be multibillion-dollar late-stage funding rounds, like those that
Uber Technologies Inc. seems
to score every few months.
That is what happened during last decades financial crisis, when money for latestage startups fell most
precipitously.
But the pain would be felt
more broadly. Fewer new
$5.5B
ZTE ranked as the No. 4 smartphone vendor in the U.S. last year.
BY JURO OSAWA
@wsjd | wsjd.com
Uber Technologies and others cash-hungry tech firms could soon face fund-raising uncertainties.
companies will be funded,
and others will be unable to
grow from seed stage to
profitable enterprise. The
herd of highly valued startups, the so-called unicorns,
would be thinned.
Still, nothing will happen
overnight. Venture firms
raised record amounts of
capital in the first quarter of
this year, and will need to
deploy it one way or another.
Moreover, tech isnt
nearly as exuberant now as
at the peak of startup-investment mania a year ago. Even
before Brexit, the funding environment had cooled.
There is another mitigating factor. Many unicorns
have for some time been in a
unique bind: too valuable to
be acquired by an established
tech giant, but not yet confident enough to conduct an
initial public offering.
A global economic slowdown, and declining equity
values, could prompt more
M&A activity. Tech has already been the busiest sector
for mergers this year, and
potential acquirers are sitting
on record piles of cash. Witness Microsoft Corp.s recent acquisition of LinkedIn
Corp., at $26.2 billion its
GLOBAL PARTNER
!"
#$
MOBILE IS ME
WWW.MWCSHANGHAI.CN
What is mobile? Is it a communication device we use stay in touch with
family and friends? A calendar to manage our daily lives?
A tool to capture and share our special moments? An entertainment
device? All of these things and more?
Ride-hailing company Lyft has tried to keep up with its larger U.S. rival Uber Technologies.
PLATINUM PARTNERS
GOLD PARTNER
P2HW181000-0-B00400-1--------AL
BUSINESS NEWS
Benchmarks devised
to supplement
financial reports can
overstate success
JAMES KACZMAN
BY TATYANA SHUMSKY
AND THEO FRANCIS
Adjusting Earnings
29
500 companies
119
400
300
123
200
351
172
100
0
482
1996
2006
2015/2016
STREET
Investors half-hoped
after Friday that
this was just a little
local difficulty.
others feel. Given the chaos in
London and anger in many European capitals, there is likely to
be a moment when a deal seems
impossible, which is sure to hurt
the pound and everything linked
to it even more. It doesnt feel
like we are there yet.
The third is to ignore the
daily politics. Drip-feed money
into the market, and dont
worry about timing the exact
low. Stock markets tend to go
up over time, so those who can
take a long view can afford to
ignore even major crashes just
as long as they dont panic. The
problem is that even the heavily
U.K.-exposed FTSE 250 stocks
still dont look that cheap by
historical standards. There will
be plenty of short-term bounces,
but fear could get a lot more intense before this is done.
35,500
Minutes a year
72,400
18,000
Minutes a year
WORKING AFTER HOURS
Minutes a month
MEETING PROSPECTIVE CLIENTS
5
Minutes a day
READING WHATS NEWS
12,650
Minutes a month
COMPLETING A CODING
BOOT CAMP
NOW ON ANDROID
8,640
Minutes a week
ATTENDING PANEL
DISCUSSIONS
2016 Dow Jones & Co., Inc. All rights reserved. 6DJ3753
P2HW181000-0-B00500-1--------AL
MANAGEMENT
A Fireworks Boss
On How to Hire
For a Big Show
How Amy Kule, executive
producer of Macys Fourth of
July Fireworks and Macys
Thanksgiving Day Parade in
New York, hires people to put
on a big show, as told to
Lindsay Gellman:
I manage hundreds of staff,
volunteers and partners for each
event. I also work closely with
local law enforcement to make
sure spectators stay safe.
Since Im not an engineer
just as Im not an expert in pyrotechnics or giant balloonsan
important part of my job is finding specialists in a given field
who can help shape and execute
our vision.
I look for an expert who is
steeped in the details of his or
her specialty, and has experience
working with large-scale events.
But the litmus test for me is
communication style. A specialist should be able to express
ideas clearly and succinctly to a
layperson without getting stuck
in technical minutiae.
Once I find the right person
for the job, I tap his or her
imagination to generate not only
new ideas for fireworks displays
or parade floats, but also solutions to unanticipated challenges
that inevitably pop up.
2016 Dow Jones & Co., Inc. All rights reserved. 6DJ3890
BY LAUREN WEBER
AND RACHEL FEINTZEIG
Brynne
Herbert,
the
founder and chief executive of
employee-relocation
firm
MOVE Guides, was boarding a
red-eye flight from San Francisco to Boston as Thursdays
Brexit results were coming in.
While she was discussing the
vote with fellow passengers,
one said, This is one heck of
an HR problem.
Ms. Herbert gets that firsthand. The American-born executive founded her company
in London while she was in
business school there in 2011.
MOVE Guides employs about
50 engineering and product
professionals there, and more
than half hail from European
Union countries beyond the
United Kingdom.
Corporate bosses with large
workforces in Britain have
been urging calm in the wake
of U.K. voters decision to
leave the EU, asking employees to continue as usual until
more details emerge about the
countrys exit plans. While it is
likely that certain policies will
change, such as work-visa re-
Big Employers
Are Urging Calm
After U.K. Vote
J.P. Morgan Chase CEO James Dimon tried to reassure staff but said some changes may be needed.
staff but also said the bank
may need to make changes to
our legal entity structure and
the location of some roles.
Theoretically, many jobs
can be done remotely, said
Raghav Singh, an expert in recruiting technology. But in reality, anyone whos doing
business seriously with the
European Community will
have to be moved out of London to another European city.
Audit and consulting firm
EY has 14,500 employees in
WORK
Continued from page B1
Cigna Corp. are surveying employees to figure out who is at
risk of burnout, and some are
making changes in the way
work gets done.
Managers and knowledge
workers, such as consultants,
now spend 90% to 95% of their
working hours in meetings, on
the phone and responding to
email, according to Mr. Cross,
a University of Virginia professor who has studied network
connections in about 300 organizations; 10 years ago,
managers spent around 60% to
65% of their time on those
tasks, he said. The sliver of
time left for focused work just
isnt enough, said Mr. Cross,
who added that a huge crisis
awaits companies that dont
rethink managers workloads.
Research and advisory firm
CEB Inc. has found that 35% to
40% of managers are so overloaded that its actually impossible for them to get work
done effectively, said Brian
Kropp, a CEB leader who
works with chief HR officers.
Years ago, people just kind
of did their tasks in front of
them. Work was much more
about what I did to accomplish
something, Mr. Kropp said.
Now its much more about
who did I work with so we
could accomplish things together?
GM and Cigna have begun
collecting data on connections
among employees to figure
out who might be overloaded.
Telltale signs of an overcon-
WORKAROUNDS
Hugh Welsh, an executive at the North American arm of conglomerate Royal DSM, has several job titles, including general counsel.
nected manager, according to
GM, include when 25% of individuals in a network say they
want more access to that manager. Cigna found that trouble
starts when more than 40% of
the connections in a network
run through one person.
When technology company
Juniper Networks Inc. analyzed employee networks to
untangle a clients complaints
about
miscommunications
with the firm, it found that the
bulk of communication about
the account was going through
a small group of employees,
according to Chris Ernst, a
CORNER OFFICE
MANAGEMENT MATTERS
Some executives
at GM complete
an assessment
to measure overload.
questions like, Are people
waiting at your office when
you arrive? and Is your
schedule booked three weeks
TEAM LEADER
P2HW181000-0-B00600-1--------AL
BUSINESS NEWS
Business
Watch
TATA COMMUNICATIONS
Emirates Airlines planes at the Dubai International Airport. The three Persian Gulf airlines deny they have distorted the global air market.
Appliance Company
Buys Cabinet Maker
Swedish household-appliance
maker Electrolux AB said it has
agreed to acquire Vintec, an
Australia- and Singapore-based
SIEMENS
Startups to Receive
$1.1 Billion Infusion
ASHRAF MOHAMMAD/REUTERS
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P2HW181000-0-B00700-1--------AL
CENTRAL BANKS | B9
As of 12 p.m. ET
Ailing
Online
Lender to
Cut Staff
European
Markets
Bounce Up
BY CHRISTOPHER WHITTALL
BY PETER RUDEGEAIR
AND AUSTEN HUFFORD
BY VIPAL MONGA
AND TATYANA SHUMSKY
Traders work in the volatility options pit at the Chicago Board Options Exchange. The volatility index hit a four-month high Monday.
Swing Trade
$6 billion
$5.28B
5
4
3
2
1
0
2015
16
BY ALEC MACFARLANE
AND KANE WU
FRANK AUGSTEIN/ASSOCIATED PRESS
U.K. Vote
Is Boon for
Lawyers
Cooling Appetite
uncertainty over the referendum on EU membership, according to bankers and lawyers. The volume of U.K.targeted M&A deals has fallen
more than 64% so far in 2016
from the same period last
year, according to Dealogic.
Still, other deal watchers
say lower stock prices and a
cheaper British pound, which
P2HW181000-0-B00800-1--------AL
BY PETER GRANT
Singapores
sovereignwealth fund is negotiating to
acquire Yes Communities, an
owner of manufactured housing, in a deal that would value
Yes at more than $2 billion,
according to people familiar
with the matter.
GIC is in talks to buy Denver-based Yes from private-equity firm Stockbridge Capital
Group, the people said. Yes
owns or operates 178 manufactured-housing communities in
17 U.S. states, according to the
companys website.
The deal hasnt been finalized, and the talks still could
break down, the people said.
If completed, the deal
would highlight the appeal of
manufactured housing, a niche
residential real-estate business
that has been stigmatizedto
an extreme, according to some
investorsby its association
with trailer parks. While some
communities resemble trailer
parks, most consist of prefabricated housing units that are
set in place but many have
wheeled chassis that make
them transportable.
Gary McDaniel, chief executive of Yes Communities, declined to comment. Executives
with GIC and Stockbridge
didnt return calls seeking
comment.
Portfolios of manufacturedhousing communities have
never been as attractive to big
investors as office buildings or
regional shopping malls. But
the asset class is beginning to
gain more attention as investors increasingly look to find
sources of higher yield in a
world of low interest rates.
Chinese Buyers
Look to London
As turmoil continues to
grip U.K. markets, some in
China are starting to look at
the British market for potential bargains.
Zhu Mei, a wealthy investor
from Shenzhen in the countrys southeast, has been looking to buy a home in Japan for
a while. But after Fridays surprise referendum result sent
the pound plunging and the
yena haven currencysoaring, she is having second
thoughts.
Buying in London seems to
be a better opportunity now,
said Ms. Zhu.
If people like Ms. Zhu now
start looking at the U.K. property market, it will represent a
turnaround from the trend so
far this year. Foreign interest
in British real estate has been
declining thanks mainly, analysts say, to the uncertainty
surrounding the referendum
as well as already-high property prices.
A combination of the referendum and pricing have
started to weigh on volume,
said David Green-Morgan, research director at Jones Long
LaSalle Global Capital Markets.
London house prices rose
by 14.5% year on year in April,
taking the average home value
to 470,025 ($621,640), according to the U.K.s Land Registry.
Yet the pounds drop since
Fridayit was near a threedecade low against the dollar
on Tuesday despite a small reboundcould now encourage
bargain-hunters.
The number of so-called
leads from Chinese homeseekers for U.K. properties last
week doubled from the week
ADVERTISEMENT
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Hot Property
$9.2 billion
China
Qatar
Taiwan
Singapore
5.8
3.3
2.9
2.6
P2HW181000-0-B00900-1--------AL
BY MICHAEL S. DERBY
BY ALEC MACFARLANE
AND ALEXANDER MARTIN
ADVERTISEMENT
P2HW181000-0-B01000-1--------AL
MARKETS DIGEST
Nikkei 225 Index
Year-to-date
15323.14 s 13.93, or 0.09%
t 19.49%
52-wk high/low20841.97 14952.02
High, low, open and close for each
trading day of the past three months. All-time high 38915.87 12/29/89
DOWN
Session open
Close
Last
Year-to-date
t 13.43%
52-wk high/low 406.80 303.58
All-time high
414.06 4/15/15
Year ago
Session high
UP 17500
Close
Open
360
2160
350
2120
16500
340
2080
16000
330
2040
15500
320
2000
15000
310
17000
Session low
Apr.
May
14500
June
Apr.
World
Close
2223.75
1545.88
805.85
25.84
24.94
11.29
1.18
1.64
1.42
2033.03
1471.88
691.21
5.59
706.11
151.67
510.59
18.55
1.16
1.43
1.11
1.15
433.38
37046.07
11531.22
39256.58
2730.24
% chg
Low
DJ Americas
Sao Paulo Bovespa
S&P/TSX Comp
IPC All-Share
Santiago IPSA
486.42
49951.64
13841.46
44792.62
3071.74
U.S.
DJIA
Nasdaq Composite
S&P 500
CBOE Volatility
17289.91 149.67
4664.43 69.99
2021.89 21.35
19.82 4.03 16.90
0.87
1.52
1.07
15370.33
4209.76
1810.10
10.88
316.70
7.95
2700.18 63.47
4088.85 104.13
9447.28 178.62
1392.25
9.91
15601.62 498.04
417.51
5.89
905.36 16.58
7835.00 189.50
7773.80 179.31
51141.14 1054.46
76929.34 1768.10
6140.39 158.19
2.57
2.41
2.61
1.93
0.72
3.30
1.43
1.87
2.48
2.36
2.11
2.35
2.64
303.58
2556.96
3892.46
8699.29
1378.80
15017.42
378.53
607.14
7579.80
7425.05
45975.78
68230.47
5499.51
Asia-Pacific
Australia
China
Hong Kong
India
Indonesia
Japan
Malaysia
New Zealand
Pakistan
Philippines
Singapore
South Korea
Taiwan
Thailand
1330.24
5103.30
2912.56
20172.46
26524.55
4882.17
15323.14
1634.04
6716.58
37076.63
7666.69
2756.53
1936.22
8505.51
1437.42
DJ Asia-Pacific TSM
S&P/ASX 200
Shanghai Composite
Hang Seng
S&P BSE Sensex
Jakarta Composite
Nikkei Stock Avg
Kuala Lumpur Composite
S&P/NZX 50
KSE 100
PSEi
Straits Times
Kospi
Weighted
SET
0.60
0.58
0.27
0.46
0.95
0.09
0.28
0.44
0.10
0.64
0.98
0.49
0.55
0.92
1532.30 4.3
5706.70 3.6
4277.22 17.7
26282.32 7.9
28504.93 1.6
4982.91 6.3
20841.97 19.5
1744.19 3.5
7039.41 6.2
38776.94 13.0
7767.23 10.3
3373.48 4.4
2107.33 1.3
9379.24 2.0
1504.55 11.6
Commodities
15%
Europe
10
sYen
0
s Euro
5
10
2015
2016
US$vs,
YTDchg
Tue
in US$ per US$ (%)
Country/currency
Americas
Argentina peso-a
0.0668 14.9630 15.6
Brazil real
0.3020 3.3112 16.4
Canada dollar
0.7630 1.3106 5.3
Chile peso
0.001497 668.20 5.7
Colombia peso
0.0003286 3042.93 4.1
Ecuador US dollar-f
1
1 unch
Mexico peso-a
0.0529 18.9054 9.9
Peru sol
0.3035 3.2950 3.5
Uruguay peso-e
0.0323 31.000 3.6
Venezuela bolivar 0.100150
9.99 58.4
Asia-Pacific
Australia dollar
China yuan
Key Rates
Latest
52 wks ago
Libor
One month
Three month
Six month
One year
0.46030%
0.63110
0.89815
1.20475
0.18650%
0.28320
0.44485
0.77150
Euro Libor
One month
Three month
Six month
One year
-0.35886%
-0.29000
-0.18186
-0.05657
-0.08071%
-0.01214
0.05786
0.16929
Euribor
One month
Three month
Six month
One year
-0.36100%
-0.28100
-0.17600
-0.04900
-0.06400%
-0.01400
0.05000
0.16400
-0.06471%
-0.02964
-0.01421
0.06900
Offer
0.05857%
0.09929
0.13929
0.24257
Bid
0.5000%
0.6500
1.0000
1.3000
Latest
0.4000%
0.5500
0.9000
1.2000
52 wks ago
3.50%
2.70
1.475
5.00
3.25%
2.85
1.475
5.00
0.00%
0.50
0.50
1.75
1.00
0.25
2.25
0.05%
0.50
0.50
2.00
0.75
0.00
2.00
Yen Libor
One month
Three month
Six month
One year
Eurodollars
One month
Three month
Six month
One year
Prime rates
U.S.
Canada
Japan
Hong Kong
Policy rates
ECB
Britain
Switzerland
Australia
U.S. discount
Fed-funds target
Call money
0.14%
n.a.
Country/currency
Hong Kong dollar
India rupee
Indonesia rupiah
Japan yen
Kazakhstan tenge
Macau pataca
Malaysia ringgit-c
New Zealand dollar
Pakistan rupee
Philippines peso
Singapore dollar
South Korea won
Sri Lanka rupee
Taiwan dollar
Thailand baht
US$vs,
YTDchg
Tue
in US$ per US$ (%)
0.1289
0.0147
0.0000758
0.009732
0.002950
0.1252
0.2463
0.7026
0.0096
0.0212
0.7375
0.0008546
0.0067700
0.03085
0.02836
7.7590 0.1
67.8652 2.5
13189 4.7
102.75 14.6
339.01 0.1
7.9904 0.2
4.0600 5.6
1.4233 2.7
104.650 0.2
47.118 0.6
1.3559 4.4
1170.11 0.5
147.71 2.4
32.418 1.5
35.260 2.1
Bulgaria lev
0.5649 1.7702 1.7
Croatia kuna
0.1470 6.801 3.0
Euro zone euro
1.1053 0.9048 1.7
Czech Rep. koruna-b 0.0408 24.540 1.4
Denmark krone
0.1486 6.7307 2.1
Hungary forint
0.003485 286.95 1.2
Iceland krona
0.008062 124.04 4.7
Norway krone
0.1174 8.5180 3.7
Poland zloty
0.2496 4.0061 2.1
Russia ruble-d
0.01546 64.667 10.1
Sweden krona
0.1171 8.5405 1.1
Switzerland franc
1.0183 0.9820 2.0
Turkey lira
0.3450 2.8983 0.7
Ukraine hryvnia
0.0402 24.8815 3.7
U.K. pound
1.3300 0.7519 10.8
2.6508
0.1126
0.2580
3.3121
2.5969
0.2747
0.2666
0.0657
HK$
AU$
AU$
HK$
HK$
HK$
HK$
HK$
HK$
AU$
TW$
KRW
HK$
AU$
HK$
HK$
$
AU$
KRW
HK$
TW$
Sym
Last
1299
4503
ANZ
BHP
3988
0001
0883
7751
9022
0939
2628
0941
CBA
9020
6954
6501
2317
7267
005380
1398
2914
9433
8058
8306
8031
8411
9437
NAB
5401
9432
7201
8604
6752
0857
2318
RIGD
RIO
005930
3382
9984
8316
0016
2330
44.45
1610.00
23.29
18.03
2.97
82.00
9.17
2861.00
18020
4.95
16.28
85.50
73.10
9313.00
15915
410.50
82.50
2523.50
139000
4.41
4147.00
3074.00
1728.00
448.70
1184.50
146.50
2742.50
24.63
1861.00
4784.00
909.40
352.30
853.20
5.06
33.35
28.35
44.20
1399000
4381.00
5668.00
2869.50
88.05
157.00
-0.11
0.94
0.09
-0.28
-1.33
-1.80
-0.11
-0.37
-0.39
...
-0.25
...
0.41
0.22
1.53
-2.08
0.61
-0.14
-1.77
...
1.82
1.02
-0.23
-1.58
-0.50
-1.88
0.37
0.49
0.81
1.36
-1.14
-1.67
-1.59
-0.78
...
0.89
0.29
0.07
0.69
0.23
-1.56
-0.79
0.96
100.2
63.7
-115.0
-123.8
-109.6
-113.0
-124.6
-154.5
-58.3
-1.0
-88.8
-163.7
-117.9
-139.2
-0.4
185.1
-62.4
1.8
-125.6
-106.4
-44.3
-49.8
...
71.4
41.8
-141.7
-148.2
-135.0
-137.3
-141.7
-170.8
-95.8
-49.0
-115.3
-196.8
-144.5
-162.5
-70.7
118.0
-100.0
-35.5
-133.8
-108.0
-45.1
-41.3
...
134.1
59.3
-85.1
-115.9
-87.3
-118.3
-89.5
-154.8
-41.9
-32.2
-71.5
-200.3
-90.1
-131.9
-68.7
22.9
-43.1
-36.4
-96.2
-139.3
15.2
-27.4
...
...
...
...
1.600
2.071
-0.552
0.196
-0.498
0.304
-0.649
-0.111
0.015
1.424
-0.290
-0.203
-0.582
0.042
0.594
3.285
-0.027
1.453
-0.658
0.371
0.155
0.937
0.598
1.434
Year ago
1.628
2.269
-0.502
0.369
-0.435
0.478
-0.503
0.143
-0.043
1.361
-0.238
-0.117
-0.530
0.227
0.208
3.031
-0.086
1.496
-0.424
0.771
0.464
1.438
0.915
2.057
3.068
-0.136
1.316
-0.158
1.292
-0.180
0.926
0.296
2.152
0.001
0.472
-0.185
1.156
0.029
2.704
0.285
2.111
-0.246
1.082
0.868
2.200
0.716
1.851
2.475
CBOT
CBOT
CBOT
CME
ICE-US
ICE-US
ICE-US
ICE-US
ICE-EU
COMEX
COMEX
COMEX
LME
LME
LME
LME
LME
LME
TCE
395.00
1123.75
461.00
112.975
3,001
141.00
19.94
65.66
1698.00
5.75
19.00
2.75
0.950
15
4.95
0.30
1.28
34.00
2.1765
1318.00
17.880
1,603.00
16,980.00
4,705.00
1,705.00
2,004.50
9,040.00
153.00
0.0510
-6.70
0.094
-7.50
-70.00
34.50
6.00
6.50
85.00
0.20
2376.00
47.24
1.4650
1.5081
2.853
48.63
433.50
-3.00
0.91
0.0233
0.0217
0.112
0.86
9.25
Year
low
1.48%
1.72
0.60
0.85
0.50
3.64
1.53
1.99
2.04
444.00
1,186.25
533.75
125.350
3,241
146.85
20.22
66.64
1,748.00
355.75
868.00
453.25
109.575
2,745
117.15
12.92
54.19
1,400.00
2.40
2.3295
1,362.60
18.420
1,675.00
17,500.00
5,070.50
1,888.00
2,082.00
9,575.00
165.00
1.9690
1,065.70
13.930
1,451.50
13,225.00
4,320.50
1,598.00
1,467.00
7,750.00
147.20
2,707.00
52.28
1.5876
1.6591
2.8650
53.30
472.50
2,351.00
32.22
0.9643
1.1366
1.9900
31.33
285.50
-0.51%
0.53
-0.47
-0.41
0.74
0.35
0.33
0.95
0.13
-0.13
1.96
1.62
1.46
4.09
1.80
2.18
Australia
USD
1.3604
GBP
1.8091
CHF
1.3847
JPY
0.0132
HKD
0.1753
EUR
1.5031
Canada
1.3106
1.7429
1.3344
0.0128
0.1689
Euro
0.9048
1.2033
0.9214
0.0088
0.1166
Hong Kong
7.7590
10.3194
7.8999
0.0755
Japan
AUD
...
1.4484
...
0.9635
...
0.6903
0.6651
...
8.5751
5.9195
5.7030
102.7500
136.6600
104.6300
...
13.2430
113.5400
78.4000
75.5300
Switzerland
0.9820
1.3062
...
0.0096
0.1266
1.0854
0.7494
0.7222
U.K.
0.7519
...
0.7656
0.0073
0.0969
0.8310
0.5737
0.5527
U.S.
...
1.3300
1.0183
0.0097
0.1289
1.1053
0.7630
0.7351
% YTD%
Chg Chg
Asia Titans
AIAGroup
AstellasPharma
AustNZBk
BHP
BankofChina
CKHutchison
CNOOC
Canon
CentralJapanRwy
ChinaConstructnBk
ChinaLifeInsurance
ChinaMobile
CmwlthBkAust
EastJapanRailway
Fanuc
Hitachi
Hon Hai Precisn
HondaMotor
HyundaiMtr
Ind&Comml
JapanTobacco
KDDI
Mitsubishi
MitsuUFJFin
Mitsui
Mizuho Fin
NTTDoCoMo
NatAustBnk
NipponStl&SmtmoMtl
NipponTeleg
NissanMotor
NomuraHldgs
Panasonic
PetroChina
PingAnInsofChina
RelianceIndsGDR
RioTinto
SamsungElectronics
Seven&I Hldgs
SoftBankGroup
Sumitomo Mitsui
SunHngKaiPrp
TaiwanSemiMfg
95.6
53.9
-118.4
-132.2
-112.4
-121.5
-126.8
-157.0
-66.7
-13.2
-91.2
-168.7
-122.3
-146.3
-12.6
169.0
-71.1
-12.7
-127.5
-110.0
-42.9
-49.4
...
...
Yield
Month ago
Previous
Cross rates
0.3773 0.04
8.8831 13.5
3.8761 0.4
0.3019 0.5
0.3851 0.03
3.641 0.05
3.7505 0.1
15.2184 1.7
1.573
1.998
-0.567
0.137
-0.506
0.244
-0.651
-0.111
-0.050
1.327
-0.295
-0.228
-0.606
-0.004
0.492
3.149
-0.094
1.332
-0.658
0.359
0.188
0.965
0.617
1.459
Latest
Middle East/Africa
Bahrain dinar
Egypt pound-a
Israel shekel
Kuwait dinar
Oman sul rial
Qatar rial
Saudi Arabia riyal
South Africa rand
1920
June
Copper ($/lb.)
Gold ($/troy oz.)
Silver ($/troy oz.)
Aluminum ($/mt)*
Tin ($/mt)*
Copper ($/mt)*
Lead ($/mt)*
Zinc ($/mt)*
Nickel ($/mt)*
Rubber (Y.01/ton)
US$vs,
YTDchg
Tue
in US$ per US$ (%)
Country/currency
Yield
Corn (cents/bu.)
Soybeans (cents/bu.)
Wheat (cents/bu.)
Live cattle (cents/lb.)
Cocoa ($/ton)
Coffee (cents/lb.)
Sugar (cents/lb.)
Cotton (cents/lb.)
Robusta coffee ($/ton)
Yen, euro vs. dollar; dollar vs. major U.S. trading partners
May
EXCHANGE LEGEND: CBOT: Chicago Board of Trade; CME: Chicago Mercantile Exchange; ICE-US: ICE Futures U.S.; MDEX: Bursa Malaysia
Derivatives Berhad; TCE: Tokyo Commodity Exchange; COMEX: Commodity Exchange; LME: London Metal Exchange;
NYMEX: New York Mercantile Exchange; ICE-EU: ICE Futures Europe. *Data as of 6/27/2016
Year
One-Day Change
Commodity
Exchange Last price
Net
Percentage
high
Currencies
Country/
Maturity, in years
3.250
Australia 2
4.250
10
3.500
Belgium 2
0.800
10
1.000
France 2
0.500
10
0.000
Germany 2
0.500
10
4.500
Italy 2
2.000
10
0.100
Japan 2
0.100
10
0.500 Netherlands 2
0.250
10
4.350
Portugal 2
2.875
10
4.500
Spain 2
1.950
10
4.250
Sweden 2
1.000
10
1.250
U.K. 2
2.000
10
0.625
U.S. 2
1.625
10
406.80 13.4
3541.18 12.9
5217.80 11.8
11802.37 12.1
1728.89 8.9
24157.39 27.2
506.05 5.5
968.03 19.6
11612.60 17.9
9537.90 11.8
54760.91 0.9
86931.34 7.3
6813.41 1.6
Coupon
18167.63 0.8
5231.94 6.8
2132.82 1.1
53.29 8.8
Apr.
519.17 0.2
54977.70 15.2
14748.00 6.4
46545.32 4.2
3243.62 4.3
High
Mar.
Latest, month-ago and year-ago yields and spreads over or under U.S. Treasurys on benchmark two-year
and 10-year government bonds around the world. Data as of 12 p.m. ET
YTD
% chg
2567.62 4.8
1956.39 9.9
1044.05 1.5
1188.42
4765.30
2655.66
18319.58
22951.83
4120.50
14952.02
1532.14
5546.88
30564.50
6084.28
2532.70
1829.81
7410.34
1224.83
0.14
0.66
1.91
33.90
16.85
54.84
121.59
46.12
13.93
4.52
29.65
37.06
49.21
26.68
9.37
46.64
13.11
52-Week Range
Close
300
June
Americas
Brazil
Canada
Mexico
Chile
EMEA
May
-4.61
-7.02
-16.61
0.95
-14.16
-21.46
13.63
-22.15
-16.57
-6.78
-35.14
-2.29
-14.53
-18.66
-24.50
-40.64
2.10
-35.46
-6.71
-5.77
-7.25
-2.54
-14.79
-40.73
-18.06
-39.84
10.41
-18.44
-22.97
-1.08
-28.93
-48.12
-31.22
-0.59
-22.26
-7.35
-1.14
11.03
-21.06
-7.67
-37.70
-6.08
9.79
% YTD%
Chg Chg Cur Stock
Cur Stock
Sym
Last
HK$
AU$
AU$
AU$
TakedaPharm
TencentHoldings
TokioMarineHldg
ToyotaMtr
Wesfarmers
WestpacBanking
Woolworths
4502
0700
8766
7203
WES
WBC
WOW
4343.00
170.50
3154.00
4975.00
39.36
28.52
20.63
-0.07
-0.23
-1.35
-3.42
0.38
0.49
-0.24
-28.39
11.66
-33.06
-33.56
-5.41
-15.02
-15.80
CHF
CHF
CHF
CHF
CHF
DKK
ABB
AXA
AirLiquide
Allianz
Anheuser Busch
AstraZeneca
BASF
BNP Paribas
BT Group
BancoBilVizAr
BancoSantander
Barclays
Bayer
BP
BritishAmTob
FinRichemont
CreditSuisse
Daimler
Deutsche Bank
DeutscheTelekom
Diageo
ENI
GlaxoSmithKline
HSBC Hldgs
INGGroep
ImperialBrands
IntesaSanpaolo
LVMHMoetHennessy
LloydsBankingGroup
LOreal
NationalGrid
Nestle
Novartis
NovoNordiskB
Prudential
ReckittBenckiser
ABBN
CS
AI
ALV
ABI
AZN
BAS
BNP
BT.A
BBVA
SAN
BARC
BAYN
BP.
BATS
CFR
CSGN
DAI
DBK
DTE
DGE
ENI
GSK
HSBA
INGA
IMB
ISP
MC
LLOY
OR
NG.
NESN
NOVN
NOVO-B
PRU
RB.
18.82
17.20
90.08
124.00
110.25
4273.50
65.81
38.35
391.45
4.85
3.36
131.50
89.14
404.45
4555.50
55.85
10.20
53.68
12.64
14.40
1935.00
13.66
1514.00
443.60
8.81
3777.50
1.62
134.65
54.95
165.35
1024.50
73.45
77.45
347.50
1190.50
7062.00
-0.05
4.85
1.54
3.20
0.68
3.57
0.95
3.90
4.15
1.85
1.76
3.38
2.48
2.41
2.26
4.39
-0.10
0.58
0.84
3.04
1.10
3.25
1.75
1.28
2.36
1.49
4.77
2.47
7.43
1.57
2.77
3.31
2.79
1.64
7.74
1.02
4.79
-31.83
-13.09
-24.18
-3.63
-7.43
-6.94
-26.57
-17.01
-27.30
-26.33
-39.93
-23.02
14.25
20.80
-22.54
-52.50
-30.81
-43.86
-12.86
4.23
-1.01
10.27
-17.27
-29.24
5.33
-47.41
-7.07
-24.80
6.47
9.28
-1.48
-10.77
-13.10
-22.24
12.43
Stoxx 50
CHF
CHF
CHF
RioTinto
RocheHldgctf
RoyDtchShell A
SAP
Sanofi
SchneiderElectric
Siemens
Telefonica
Total
UBSGroup
Unilever
Unilever
VodafoneGroup
ZurichInsurance
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
AmericanExpress
Apple
Boeing
Caterpillar
Chevron
CiscoSystems
CocaCola
Disney
DuPont
ExxonMobil
GenElec
GoldmanSachs
HomeDepot
Intel
IBM
JPMorganChase
JohnsJohns
McDonalds
Merck
Microsoft
NikeClB
Pfizer
Procter&Gamble
3M
TravelersCos
UnitedTech
UnitedHealthGroup
VISAClA
Verizon
WalMart
% YTD%
Chg Chg
Sym
Last
RIO
ROG
RDSA
SAP
SAN
SU
SIE
TEF
FP
UBSG
UNA
ULVR
VOD
ZURN
2132.50
246.20
1921.00
66.40
72.82
50.87
89.19
7.84
41.39
12.25
39.87
3367.00
218.10
226.60
2.25
2.20
0.73
1.84
3.41
2.30
2.06
2.31
2.64
-2.00
1.83
1.71
4.20
2.95
7.73
-10.93
25.88
-9.51
-7.35
-3.22
-0.77
-23.42
2.32
-37.24
-0.60
15.05
-1.31
-12.31
AXP
AAPL
BA
CAT
CVX
CSCO
KO
DIS
DD
XOM
GE
GS
HD
INTC
IBM
JPM
JNJ
MCD
MRK
MSFT
NKE
PFE
PG
MMM
TRV
UTX
UNH
V
VZ
WMT
57.34
92.38
123.02
71.86
101.08
27.63
43.99
95.64
62.30
89.99
29.82
140.09
126.85
30.92
144.45
58.67
117.77
117.76
55.53
49.20
52.67
34.23
81.90
168.66
112.71
98.14
138.40
74.86
54.74
71.41
-0.57
0.37
0.26
0.67
0.72
1.15
0.48
1.33
-2.78
1.27
1.71
0.42
1.75
0.65
0.66
1.84
1.05
1.26
0.40
1.59
1.50
1.29
0.82
0.88
2.14
0.96
0.94
2.07
0.01
-0.13
-17.56
-12.24
-14.92
5.74
12.36
1.73
2.39
-8.98
-6.46
15.45
-4.27
-22.27
-4.08
-10.25
4.96
-11.15
14.65
-0.32
5.13
-11.32
-15.73
6.06
3.14
11.97
-0.13
2.15
17.65
-3.47
18.44
16.49
DJIA
Asia Titans 50
1
8
Apr.
YTD t 7.9%
150
140
130
120
110
100
50day
moving average
t
15
22
29
6
May
13
20
27
3
10
June
17
Stoxx 50
24
YTD t 12.9%
3000
2900
2800
2700
2600
2500
1
8
Apr.
15
22
29
6
May
13
20
27
3
10
June
17
24
P/E: 18
YTD t 0.8%
18000
17500
17000
16500
16000
1
8
Apr.
15
22
29
6
May
13
20
27
3
10
June
17
24
P2HW181000-0-B01100-1000000001F
STOCKS
Continued from page B7
to $1,314.80 an ounce, while
the yield on the 10-year Treasury note rose slightly to
1.471% in earlier trading as
prices fell. The yield slipped to
1.458% by midday.
Shares of utilities, which
are often viewed as bond proxies because of their steady
dividend payouts, were among
the only decliners Tuesday after posting big gains the past
couple of days.
The dollar rose 0.6% against
the yen, which tends to gain
during times of market stress.
Mark Dowding, a senior
portfolio manager at BlueBay
Asset Management, said global
markets are likely to stabilize
following the recent declines,
and that the impact of Brexit
wont be felt as keenly in Europe and the U.S. as in the
U.K.
Id be inclined to think we
have seen most of the worst of
it in the course of the last couple of days in terms of global
assets, but we may not have
seen the worst of it in terms
BY GEORGI KANTCHEV
A Barclays branch in London. U.K. banks regained some ground, including a 3.4% rise for Barclays.
counter a potential drag on
the global economy after the
Brexit vote, with many predicting rate cuts from the
Bank of England and further
stimulus from the European
Central Bank.
Fed-fund futures, which investors and traders use to bet
on movements in U.S. interest
IMAGINECHINA/ZUMA PRESS
BY ROBIN SIDEL
A QR code for restaurant-review site Dianping, shown in 2014. Venture fund Lightspeed backed
Dianping, which merged with a rival to form Meituan-Dianping, later valued at over $18 billion.
and software to help employers find better candidates online. Lightspeed China is an
early investor in internet
trucking company Yunmanman, which provides a smartphone-based schedule service
for trucks. It also has put
money into IfChange, an online
data-intelligence service provider helping employers like
Alibaba Group Holding Ltd.
and Tencent Holdings Ltd. find
better candidates online.
Chinese companies didnt
like to pay for software in the
past, Mr. Mi said. But as labor costs get higher, businesses are more willing to pay
for software services that can
drive savings and revenue
growth.
Not all of Lightspeed
Chinas investments have paid
off. One early investment in
TasteV, a social e-commerce
site that helps consumers buy
wine recommended by friends,
soured. Beijings corruption
crackdown hit sales of highend wines, forcing dealers to
reduce inventory as sales fell.
Chinas fast-changing internet
landscape also hurt the
startup. TasteV, launched in
2012, relied heavily on Twitter-like social-networking site
Weibo Corp. When that application began losing traffic to
Tencents messaging app
WeChat, TasteV wasnt able to
transfer its early success on
Weibo to the new platform,
which was less open to thirdparty apps.
Advertisement
FUND NAME
NAV
GF AT LB DATE CR
NAV
%RETURN
YTD 12-MO 2-YR
3.3
-8.7
OT
OT
OT
OT
OT
OT
OT
OT
OT
OT
OT
OT
OT
OT
AS
AS
AS
AS
AS
AS
OT
OT
OT
OT
OT
OT
OT
OT
OT
OT
OT
OT
OT
OT
OT
OT
OT
OT
OT
OT
OT
AS
AS
AS
AS
AS
AS
OT HKG
OT HKG
OT HKG
OT HKG
OT HKG
OT HKG
OT HKG
OT HKG
OT HKG
OT HKG
OT HKG
OT HKG
OT HKG
OT HKG
EQ CYM
EQ CYM
EQ CYM
EQ CYM
EQ CYM
EQ CYM
OT CYM
OT CYM
OT CYM
OT CYM
OT CYM
OT CYM
OT CYM
OT CYM
OT CYM
OT CYM
OT HKG
OT HKG
OT HKG
OT HKG
OT HKG
OT HKG
OT HKG
OT HKG
OT HKG
OT HKG
OT HKG
EQ CYM
EQ CYM
EQ CYM
EQ CYM
EQ CYM
EQ HKG
06/27 AUD
06/27 AUD
06/27 CAD
06/27 EUR
06/27 EUR
06/27 GBP
06/27 GBP
06/27 HKD
06/27 HKD
06/27 NZD
06/27 NZD
06/27 CNH
06/27 USD
06/27 USD
06/27 HKD
06/27 AUD
06/27 CAD
06/27 NZD
06/27 USD
06/27 HKD
06/27 GBP
06/27 AUD
06/27 CAD
06/27 NZD
06/27 HKD
06/27 HKD
06/27 SGD
06/27 USD
06/27 USD
06/27 EUR
06/27 CNH
06/27 CNH
06/27 USD
06/27 AUD
06/27 CAD
06/27 GBP
06/27 HKD
06/27 USD
06/27 NZD
06/27 CNH
06/27 CNH
06/27 AUD
06/27 CAD
06/27 NZD
06/27 USD
06/27 USD
06/27 USD
11.08
10.37
10.34
10.95
10.72
10.56
11.97
11.05
10.91
10.88
9.56
11.72
10.89
10.96
46.82
7.88
7.72
8.05
7.75
8.53
9.26
8.85
8.88
9.11
12.88
8.69
9.52
12.98
8.75
9.70
9.35
11.09
67.46
8.64
8.67
8.14
8.80
9.66
8.80
8.32
8.56
8.11
9.29
9.55
121.82
33.70
231.79
-12.6
-14.3
-13.3
-13.6
NS
-13.8
-3.6
-13.2
-12.6
-12.7
-15.5
-11.5
-12.7
-13.0
-11.6
-11.4
-11.9
-11.0
-11.6
-11.6
5.4
6.5
5.7
6.8
6.0
6.0
6.1
5.9
5.9
5.2
-4.7
-4.8
-6.1
-6.0
-6.8
-7.3
-6.0
-6.1
-5.8
-4.7
-4.9
-13.7
NS
NS
-16.7
-18.4
-11.9
-19.0
-19.5
-20.1
-19.9
NS
-20.2
-8.8
-19.5
-21.6
-18.8
-23.7
-16.7
-21.4
-19.5
-30.5
-31.1
-31.7
-30.7
-31.2
-30.6
3.3
5.3
3.7
6.2
4.0
4.0
4.7
3.9
4.0
3.1
-16.9
-13.1
-18.8
-18.8
-20.1
-20.9
-19.1
-18.9
-17.9
-17.1
-13.4
NS
NS
NS
-32.8
-33.1
-26.8
-8.3
NS
NS
NS
NS
NS
NS
NS
NS
NS
NS
NS
NS
NS
NS
-11.8
-12.2
-13.0
-11.1
-12.8
-11.9
NS
6.5
4.8
7.7
4.7
4.7
NS
4.7
4.7
NS
NS
1.1
-2.2
-1.0
-2.6
NS
-2.3
-2.1
-0.1
NS
NS
NS
NS
NS
0.3
-0.8
0.9
NAV
GF AT LB DATE CR
VP Classic-B Units
VP Classic-C Units
VP Classic-C Units AUD H
VP Classic-C Units CAD H
VP Classic-C Units HKD H
VP Classic-C Units NZD H
VP Classic-C Units RMB
VP Classic-C Units RMB H
VP Multi-Asset Fund Cls A USD
VP Taiwan Fund
AS
AS
AS
AS
AS
AS
AS
AS
OT
AS
EQ HKG
EQ HKG
EQ HKG
EQ HKG
EQ HKG
EQ HKG
EQ HKG
EQ HKG
OT HKG
EQ CYM
06/27 USD
06/27 USD
06/27 AUD
06/27 CAD
06/27 HKD
06/27 NZD
06/27 CNH
06/27 CNH
06/27 USD
06/27 USD
NAV
%RETURN
YTD 12-MO 2-YR
104.59
13.19
10.90
10.61
9.02
10.96
9.11
8.73
9.58
15.28
-12.1
-12.1
-11.1
-11.4
-12.1
-11.5
-10.7
-10.8
-2.4
6.0
-27.2
-27.7
-27.1
-28.0
NS
-26.7
NS
NS
NS
-5.6
0.4
0.6
3.0
1.7
NS
3.3
NS
NS
NS
-4.7
LIST YOUR
FUNDS
P2HW181000-0-B01200-1--------AL
Email: heard@wsj.com
WSJ.com/Heard
Land Grab
No Return to
Normalcy for
U.S. Banks
Anbang
5%
Source: the company
buying more. Arbitrary trading halts were one reason index provider MSCI earlier
this month decided against
including Chinese domestic
shares in its indexes.
Credit-rating company
Moodys is worried that
Vankes rating could be hurt
by removal of the management team, led by Mr. Wang
since the companys founding decades ago under the
Shenzhen municipal government. Vanke has delivered
stellar results through prudent financial management
not a commonplace in China.
But the alternative isnt so
bad either. China Resources
has no shortage of managers
for a property business,
given that it owns another
highly rated developer, China
Resources Land.
Vanke was among the first
batch of companies listed on
the Shenzhen stock exchange
as the country moved to embrace the market. Now, 25
years later, it is time to accept the sometimes uncomfortable effects of letting
market forces rule.
Jacky Wong
OVERHEARD
Its a Cryan shame.
Since he took over as cochief executive of oncemighty Deutsche Bank last
year, John Cryan has seen
some 54% lopped off of the
banks market value in dollars.
As of Monday morning, this
left it slightly lower than the
market capitalization of SunTrust Banks.
SunTrust, which does business in the Southeastern U.S.,
is the sort of institution that
boasts about how many
ATMs it has, not traders.
SunTrust has about onequarter of the employees and
had barely one-tenth the assets of Deutsche at the end
of last year.
By the standards of regional banks, SunTrust is no
slouch, making its headquarters in the nations 21st tallest building and the secondhighest in Atlanta.
But then Georgias capital
has no ambitions to become
a global financial center.
Frankfurt doesespecially
now that London is reeling
from Brexit. This isnt a good
sign.
Acknowledgment is the
first step toward acceptance.
In China, that means realizing that cleaning up the bad
debts riddling the financial
system will require more
than just piling on fresh
debt. It will take major doses
of equity, too.
China Huarong Asset
Management, one of the
largest institutions tasked
with soaking up the countrys souring loans, said Friday that it plans to raise
more than $1 billion in a
public offering in Shanghai
less than a year after raising
$2.5 billion with an offering
in Hong Kong.
Beijing established Huarong and other bad bank
Capital Cushion
China Huarong's capital
adequacy ratio
15%
10
5
0
2012 13
14
June
15*
15
countercyclical plays on
Chinas again-substantial
stock of nonperforming
loans. They buy bad debt at
a discount to restructure and
sell, swap bad debt for equity and securitize assets.
They also have other businesses providing the likes of
asset-management and brokerage services.
Huarongs possible Shanghai listing is an acknowledgment that capital will erode
faster than had been expected. On the face of it,
Huarong seems adequately
capitalized. Its capital-adequacy ratio dropped close to
the 12.5% regulatory minimum last year, but the Hong
Kong offering boosted it to
14.75%, and Jefferies analysts say the Shanghai offering could bolster it by a further 4 to 6 percentage
points.
Why so much buffer? Huarong is tasked with taking on
aggressive asset growthaveraging 40% over the past
three yearsso a substantial
capital cushion is necessary.
And Huarong has been moving away from a wholesale
bank-funded model, meaning
an increasing portion of its
funding comes from debt itself. Earlier this month, for
instance, it raised more than
$1 billion in debt to fund operations.
Other signs of indigestion
are emerging as the scale of
DEALS
Continued from page B7
vestment deals freely with
other countries after the U.K.
leaves the EU. Opponents have
countered that deals could dry
up because investors will
worry about how to handle everything from immigration
and labor to trade with the
rest of Europe.
There are 18 deals valued
at $3.6 billion excluding debt
between U.K. companies and
Asian acquirers that have
been announced but not completed, according to Dealogic.
The biggest is private-equity
firm Bain Capital LLC and the
U.K. Department of Healths
820 million (around $1.09
billion) sale of Bio Products
Laboratory Ltd. to Chinese investment firm Creat Group
Corp., which was announced
in May.
A further 115 acquisitions
by Asian buyers valued at
$95.13 billion excluding debt
are pending across the rest of
Europe.
Among them is Chinas biggest yet outbound deal, China
National Chemical Corp.s
pending $43 billion acquisition of Switzerland-based
Syngenta AG. Although Switzerland isnt in the EU, Syngentas business extends
throughout Europe.
Asian buyers looking for
assets and businesses to bring
back home likely wont be deterred by Brexit, bankers say.
But potential buyers hoping
LAW
Continued from page B7
this, Ms. Czerniawska said.
The U.K. is already Europes
largest and fastest-growing
market for consulting services,
with spending up 8% to $14
billion in 2015, according to
Source Global Research.
Accounting firm Ernst &
Young Global Ltd. has 14,500
employees in the U.K. and expects to tap others in its quarter-million-strong global workforce to help clients deal with
the impact.
Tax practices will be af-
VIX
Halfway There
Uncertainties loom over pending Europe- and U.K.-bound deals from Asia after the Brexit vote.
Largest Europe-bound deals
ANNOUNCED
TARGET
TARGET MARKET
ACQUIRER
ACQUIRER MARKET
Feb. 3, 2016
Syngenta
Switzerland
China
Aug. 6, 2015
Wind Telecomunicazioni
Italy
CK Hutchison
Hong Kong
Finland
Tencent
China
Kuka (86.49%)
Germany
Midea Group
China
Japan
China
DEAL VALUE
$44.13 billion
11.86
8.60
4.48
2.86
U.K.
Creat Group
May 5, 2016
Pension Insurance
U.K.
363
U.K.
Ping An Insurance
China
197
U.K.
Hong Kong
186
May 9, 2016
U.K.
GCA Savvian
Japan
111
Altium Capital
Source: Dealogic
hours spent by associates pondering hundreds of rules related to everything from the
migration of honey bees to the
making of cheese and the
width of tire treads. The U.K.
government hasnt led its own
complex trade negotiations in
decades. That means it will
need help from private firms,
said Clif Burns, an attorney
specializing in international
trade with Bryan Cave LLP.
Theres no question well
be hiring more, said Mr.
Burns. The firm has 42 lawyers
in its London office.
Sara Randazzo
and Kimberly S. Johnson
contributed to this article.
CEO
Continued from page B7
permanent CEO.
More details on the LendingClub moves were expected
at its annual shareholder
meeting, scheduled for Tuesday afternoon. The meeting
was originally scheduled to be
held on June 7, but the companys board postponed the
gathering for three weeks to
allow more time for the completion of a report on the
state of its business.
In its announcement Tuesday, the online lender said it