Kavanaugh Accuser Goes Public

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Last week: DJIA 26154.67 À 238.13 0.9% NASDAQ 8010.04 À 1.4% STOXX 600 377.85 À 1.1% 10-YR. TREASURY g 13/32 , yield 2.992% OIL $68.99 À $1.24 EURO $1.1622 YEN 112.05 What’s Death Toll Rises as Florence Floods the Carolinas U.S., News China Ramp Up Business&Finance Trade .S. companies have Umoved cautiously in repatriating overseas prof- Threats its, despite the administration’s assertions that trillions of dollars would Trump administration return home quickly after gets ready to impose last year’s tax changes. A1 new tariffs; Beijing Amazon is investigating internal leaks of data as it Cumulative rainfall from 8 a.m. Thursday to 8 a.m. Sunday weighs scuttling talks fights to root out fake reviews President Trump’s eco- and other seller scams. A1 5110 5202530354045 inches nomic conflict with China is Meredith has agreed to River gauges, set to escalate this week, as Sunday afternoon NORTH CAROLINA sell Time magazine for $190 Raleigh the administration plans to Major ﬂooding Neuse River million to Marc Benioff, co- Greenville unveil fresh tariffs on $200 founder of Salesforce.com, Moderate or billion in Chinese products en- and his wife, Lynne. B1 minor ﬂooding tering the U.S. and Beijing debates new ways to retaliate Smaller stocks have Little River against U.S. corporations do- climbed more than larger New Bern ing business in China. counterparts this year. B1 Fayetteville Cape Fear Trent River River Shell is planning to lay out Lumber By Jacob M. targets to manage its emis- River Schlesinger, sions of the greenhouse gas Jacksonville Lingling Wei methane. B3 Lumberton and Bob Davis Pee Dee Uber is trailing a much River Atlantic Ocean The threats from both sides smaller Estonia rival in the Wilmington of the Pacific risk upending a race to become Africa’s dom- fragile new diplomatic initia- inant ride-hailing app. B4 SOUTH Florence’s tive—led by Treasury Secre- path Private-equity firms TPG CAROLINA tary Steven Mnuchin and sup- Capital and Rockbridge are ported by top U.S. financial and Myrtle Beach exploring strategic options business executives—to see if for their stake in ticketing they can broker negotiations

company AXS. B5 FROM TOP: VEASEY CONWAY FOR THE WALL STREET JOURNAL; RANDALL HILL/REUTERS; DAVID GOLDMAN/AP Source: NOAA THE WALL STREET JOURNAL. aimed at staving off a new MORE TO COME: Tropical storm Florence continued to soak the Carolinas, claiming more than a dozen lives and stranding hundreds round of tit-for-tat penalties. The rousing listing of a of people. Overflowing Neuse River in New Bern, N.C. (top); a rescue in Lumberton, N.C. (middle) and flooding in Fayetteville, N.C. A2. As part of that initiative, Dutch payments company the Chinese government over is offering investors hope the weekend was completing in Europe’s tech scene. B5 plans for a top economic pol- World-Wide icy official to visit Washington in the next few days to lay the Kavanaugh Accuser Goes Public groundwork for a trip by Vice Trump’s conflict with Premier Liu He the following BY KRISTINA PETERSON China is set to escalate as The public allegation by the day that the vote would pro- Flake said in an interview. week. Mr. Liu is expected to AND SADIE GURMAN the administration plans to woman, Christine Blasey Ford, ceed as scheduled, but hours With Republicans holding just see Mr. Mnuchin, and possibly impose fresh tariffs on $200 in an article published by the later, Sen. Jeff Flake (R., a one-vote majority on the Mr. Trump. But Chinese offi- billion in Chinese products A woman who has accused Washington Post Sunday, Ariz.), who sits on the com- committee, a defection by Mr. cials said that if Mr. Trump while Beijing debates new Supreme Court nominee Brett threatened to alter the trajec- mittee, said he wouldn’t vote Flake would prevent the panel carries out his plans to an- ways to retaliate against Kavanaugh of sexual assault tory of a confirmation process for Judge Kavanaugh to ad- from favorably advancing nounce the fresh tariffs early U.S. corporations. A1 when they were teenagers went that has been heading toward vance to the full Senate until Judge Kavanaugh to the full this week—as people familiar public with her name for the a vote in the Senate Judiciary the committee had heard from Senate, where the GOP has a with his plans said over the A woman who has accused first time on Sunday, injecting Committee on Thursday. A Mrs. Ford. 51-49 majority. Sen. Bob weekend that he would—then Supreme Court nominee Ka- immediate uncertainty into Re- spokesman for the commit- “I would not vote yes until Corker (R., Tenn.) told Politico those talks could get scuttled. vanaugh of sexual assault publicans’ push to confirm the tee’s chairman, Sen. Chuck we hear more from the woman he also supported delaying the “China is not going to nego- when they were teenagers next high-court justice. Grassley (R., Iowa), said Sun- who’s come forward,” Mr. PleaseturntopageA4 PleaseturntopageA8 went public with her name for the first time. A1 Florence continued to Stock Rally Isn’t Just Tech-Driven douse the Carolinas and un- Smaller stocks are outperforming big ones, a sign of the breadth After Tax Rewrite, Profits leashed widespread flooding, claiming at least 16 lives. A2 of the stock-market rally. This is illustrated by the NYSE Advance- Decline Line, the cumulative number of net daily advances. B1. A U.S. Border Patrol agent From Abroad Return Slowly was arrested on suspicion of 20,000 killing four prostitutes. A3 BY RICHARD RUBIN A confidential U.N. report in foreign subsidiaries to avoid This is money that would never, AND THEO FRANCIS says North Korea has been 15,000 additional taxes. ever be seen again by the work- able to circumvent restric- The new law imposes a one- ers and the people of our coun- tions, rendering the latest U.S. companies have moved time tax on those old earnings— try.” U.N. sanctions ineffective. A6 10,000 cautiously in repatriating profits whether or not money is repa- The Wall Street Journal re- stockpiled overseas in response triated. It also removes federal viewed securities filings from Typhoon Mangkhut skid- to last year’s tax-law rewrite, af- taxes on subsequent repatria- 108 publicly traded companies ded into mainland China af- 5,000 ter the Trump administration’s tions and makes future foreign accounting for the vast majority ter killing at least 59 people assertions that trillions of dol- profits generally free from U.S. of an estimated $2.7 trillion in in the Philippines. A6 lars would come home quickly taxes. profits parked abroad, and A Palestinian teenager 0 and supercharge the domestic “We expect to have in excess asked each company what it was fatally stabbed an Israeli- economy. of $4 trillion brought back very doing with the funds. In their American man in the West The tax-law revamp ended shortly,” President Trump told filings and responses, they said Bank, officials said. A20 –5,000 the practice of taxing U.S. com- executives assembled at his golf they have repatriated about panies when they bring home course in Bedminster, N.J., in $143 billion so far this year. Jan. Sept. Saudi authorities are seek- foreign profits. Companies long August. “Over $4 [trillion], but About two-thirds of the ing the death penalty for Source: Dow Jones Market Data complained that profit earned close to $5 trillion, will be money came from two corpora- three prominent clerics. A20 abroad was trapped and held it brought back into our country. PleaseturntopageA12

JOURNAL REPORT Newborn Care Amazon Investigates Domino’s Free Pizza Offer Backfires in Age of Ink Leaps Forward iii Innovations in Health Suspected Staff Bribes Russians tattoo the logo in exchange for a lifetime of pies Care, R1-8 Amazon.com Inc. is investi- information that can give an BY JAMES MARSON had underestimated how much gating suspected data leaks edge to independent mer- AND THOMAS GROVE Russians love free food. and bribes of its employees as chants selling their products “More than a million people CONTENTS Markets Digest...... B7 it fights to root out fake re- on the site, according to sell- MOSCOW—Six students in a would have come to demand Business & Finance B2-3 Opinion...... A17-19 Crossword...... A16 Sports...... A16 ers who have been offered and row hurried into Konstantin pizzas” if the promotion had Heard on Street... B10 Technology...... B4 By Jon Emont purchased the data, as well as Gonyshev’s small tattoo parlor lasted the full two months, Journal Report... R1-8 U.S. News...... A2-4 in Hong Kong and brokers who provide it and one day this month with identi- guessed 24-year-old Natalia Life & Arts...... A13-15 Weather...... A16 Markets...... B9-10 World News.. A6-9,20 Laura Stevens and people familiar with internal cal requests to ink a domino, Koshkina, who got a small Robert McMillan investigations. and quick. Domino’s logo tattooed above in San Francisco The practice, which violates Days earlier, Domino’s Pizza her left kneecap, just below a > company policy, is particularly in Russia had announced a pro- Lifelong commitment skull embellished with roses views and other seller scams pronounced in China, accord- motion that was supposed to and butterflies. “After all, this from its website. ing to some of these people, run for two months offering it was ending the promotion— is Russia,” she said. Employees of Amazon, pri- because the number of sellers lifelong free pizza to anyone although those who were being Bargains and freebies are marily with the aid of inter- there is skyrocketing. As well, who tatted up with the com- inked right then could still powerful draws here. The So- s 2018 Dow Jones & Company, Inc. All Rights Reserved mediaries, are offering inter- Amazon employees in China pany’s logo. But that morning, make the midday cutoff. viet period—where foodstuffs nal data and other confidential PleaseturntopageA12 it posted on social media that The company, it turned out, PleaseturntopageA12 A2 | Monday, September 17, 2018 **** THE WALL STREET JOURNAL. U.S. NEWS

THE OUTLOOK | Harriet Torry and Sarah Chaney ECONOMIC CALENDAR

Economy Shrugs Off Storms’ Blows Wednesday: Brazil’s central bank is widely expected to keep urricanes upend lives starts, leading to car pur- Economic impacts depend rates at the historic low of 6.5% and destroy wealth, chases and construction that Storm Costs in part on where storms hit. reached in March at its Wednes- H but leave little lasting boost economic activity to The biggest economic losses from natural Property damage Gulf-coast storms threaten day meeting. But uncertainties imprint on the broader replace property that was disasters in the U.S. from 1950 to 2017 Lost output to damage U.S. energy infra- are piling up, as the local cur- economy. wiped out. Houston saw sec- structure, pushing up fuel rency keeps losing strength $0 billion $50 $100 $150 $200 That is one of the main tors like retail, restaurants prices for households and against the dollar amid global takeaways from an examina- and trade recover quickly. Hurricane Katrina 2005 businesses nationally. Every trade tensions and domestic po- tion of the economic effects Matthew led to a bump in penny increase in gasoline litical turmoil. Inflation, however, of storms in recent years. grocery-store sales before Hurricane Harvey 2017 reduces consumer spending remains below target. Hurricane Harvey last and after the storm. nationally by $1 billion over Thursday: The U.S.-based La- year flooded the nation’s Economic growth isn’t a Hurricane Maria 2017 the course of a year, esti- bor Department publishes last fourth-largest city by popu- proxy for well-being, and mates Ryan Sweet, econo- week’s jobless claims data. The lation, Houston, destroying natural disasters like hurri- Superstorm Sandy 2012 mist at Moody’s Analytics. figures are a gauge of layoffs $125 billion worth of prop- canes destroy lives and East Coast storms don’t bear across the U.S. and have re- erty, according to estimates wealth even if they don’t Hurricane Irma 2017 the same risk. cently hit a near-half-century by Moody’s Analytics Inc. make a huge dent in the na- low. Economists expect jobless But lost economic output tion’s economic output. Hurricane Andrew 1992 hat all leaves an en- claims to continue to move was just $8.5 billion, a Money spent on property re- couraging prognosis lower in the coming months. barely perceptible sliver of pairs may boost gross do- L.A. earthquake 1994 T for Florence’s eco- The U.S.-based National Asso- more than $19 trillion of na- mestic product in the short- nomic impact. There is en- ciation of Realtors releases Au- Hurricane Ike 2008 tional economic output, ac- term, but it comes at the ergy infrastructure in Flor- gust existing-home sales fig- cording to Moody’s. expense of discretionary Hurricane Hugo 1989 ence’s path, he said, ures. Sales of previously owned For the U.S. economy as a spending households would including an oil refinery and homes make up the bulk of the whole, output grew at a have chosen instead. San Fran. earthquake 1989 Note: Figures are liquid natural gas terminal in housing market, but these kinds healthy 2.8% rate in the inﬂation-adjusted Savannah, Ga., up to 12 nu- of home sales tumbled in July. quarter when Harvey hit nd some local econo- Source: Moody's Analytics THE WALL STREET JOURNAL. clear power plants, and natu- The recent slowdown stems Texas. Payroll employment mies can be devas- ral-gas storage in Savannah, largely from rising home prices growth slowed in the weeks A tated by a storm and best quarters in the last ex- “Within just a few years, Charleston, S.C., and Wil- and mortgage rates. Economists after Harvey, rising just bear long-running scars, es- pansion. Property damage Katrina victims’ incomes mington, N.C. Still, he said, surveyed by The Wall Street 14,000 in September, and pecially ones plagued by from Katrina—at $161 bil- fully recover and even sur- “I don’t think this hurri- Journal expect to see sales pick then bounced back with poverty or poor infrastruc- lion—far outnumbered lost pass that of controls from cane’s impact on U.S. energy up in this latest report. growth of 271,000 the fol- ture. Employment in Puerto economic output—at $31 bil- similar cities that were unaf- prices nationally will be as Friday: Policy makers at the lowing month. Individual Rico dropped 35,000 after lion—according to Moody’s. fected by the storm,” the re- significant as Harvey was.” European Central Bank initially claims for unemployment Hurricane Maria last year A 2014 study on the eco- search found. Economic might is also hoped that the slowdown in benefits briefly climbed, and and still hasn’t recovered. In nomic impact of Katrina by Businesses in hurricane- less concentrated in Flor- economic growth that became then resumed a trend of New Orleans, shocked in economists Tatyana Deryug- affected states also tend to ence’s path. Charleston was apparent at the start of the year shrinking to historic lows. 2005 by Hurricane Katrina, ina, Laura Kawano and Ste- adapt. “If you’re a manufac- the 73rd-largest metropoli- would prove short-lived, but Studies show that business employment and economic ven Levitt found that Katrina turer and you’re sourcing tan economy by gross do- have come to accept that it will might slow down during and output still haven’t returned destroyed more than 200,000 materials for your process mestic product in 2016, Myr- be more long-lasting. A survey immediately after storms hit. to pre-Katrina levels. homes and had large and and you normally get them tle Beach was 144th and of purchasing managers in the Restaurants and clothing But even in those cases, persistent impacts on where in South Carolina [or] in Wilmington was 162nd. manufacturing and services sec- stores lost foot traffic on the local devastation typically people live—yet the impact North Carolina...you might In all, Florence’s projected tors is expected to indicate that Atlantic coast after Hurricane doesn’t hit the national on the wage income, employ- make a call and say, ‘Hey, path through North Carolina, the cooling of activity has con- Matthew in 2016, according economy. When Katrina hit ment and total income of the can we get these from some- South Carolina and parts of tinued into September, with the to a Federal Reserve study. New Orleans, the broader individuals affected by the where else?’ ” said Ben Her- Virginia and Georgia could composite Purchasing Manag- However, before long, re- economy grew at a robust storm was “small and mostly zon, economist at Macroeco- impact 5% to 10% of the U.S. ers Index seen edging down to building and restocking 3.6% annual rate, one of the transitory.” nomic Advisers. population, said Mr. Sweet. 54.4 from 54.5. Flooding Threat Expected to Last for Days Florence Damages NEW BERN, N.C.—Florence doused the Carolinas for a third day with unrelenting Coal-Ash Landfill rain that unleashed widespread flooding Sunday, and BY VALERIE BAUERLEIN Sunday afternoon, bulldoz- officials in the region warned AND RUSSELL GOLD ers could be seen hauling sand residents that the menace to repair two breaches in the would persist for days. CAPE FEAR, N.C.—Heavy containment area. A thick gray The storm, which was rains from Florence washed discharge was still flowing out. out a portion of a landfill used The Sutton coal plant is no By Arian Campo-Flores, to dispose of coal ash, a by- longer active, and Duke is Erin Ailworth product of burning coal to moving the coal ash from a la- and Valerie Bauerlein generate electricity. goon to a lined landfill. That Part of the earthen top of operation is ongoing. downgraded to a tropical de- the 20-foot-tall landfill was The Environmental Protec- pression on Sunday, has gone, exposing the deep gray tion Agency is working with claimed at least 16 lives and ash beneath, and an undeter- the state of North Carolina stranded hundreds of people mined amount of the coal ash and Duke to monitor coal-ash in floodwaters. Florence is washed into nearby Lake Sut- storage in the region, Reggie forecast to dump as much as ton, which feeds into the Cape Cheatham, the director of the 10 additional inches of rain on Fear River. agency’s Office of Emergency an already saturated region. Duke Energy Corp., owner Management, said at a Sunday Rainfall totals could reach of the coal-ash landfill at the briefing. as high as 40 inches in south- L. V. Sutton Power Plant near “We have no other reported eastern North Carolina and 15 Wilmington, N.C., said crews breaches,” he said. “This par- to 20 inches in the western were on the scene assessing ticular breach is on site and part of the state. The down- the situation. Paige Sheehan, a still a ways from the Cape pour will produce further flash company spokeswoman, said Fear River.” flooding, river flooding and she believed a ditch around Kemp Burdette, who moni- raise the risk of landslides, ac- the landfill’s perimeter con- tors Cape Fear River for the cording to the National Hurri- tained some of the washed- environmental group Water- cane Center. away coal ash, but some es- keeper Alliance, left his flood- “This storm has never been caped into the lake. ing house early Sunday to in- more dangerous than it is “We think it is very unlikely vestigate the erosion and right now,” North Carolina it made it to the river,” said leakage at the coal-ash storage Gov. Roy Cooper said Sunday. Ms. Sheehan. “We feel very facility. He said he is con- “Floodwaters are still raging confident that public health cerned that the discharge across parts of our state, and and the environment remain might be making its way into the risk to life is rising with very well protected.” the Cape Fear River. the angry waters.” The company’s initial esti- Duke has been working for Some rivers aren’t expected mate was that 2,000 cubic several years to move the ash to reach their highest points yards of coal ash was washed from ponds into lined landfills until later this week and could out of the landfill, she said. meant to permanently store inundate areas that haven’t Two thousand cubic yards is the material. The active cell of flooded in previous storms. about two-thirds of an Olym- the landfill was covered with

The North Carolina Depart- TOM COPELAND/ASSOCIATED PRESS pic-size swimming pool. earth before Hurricane Flor- ment of Transportation advised Joe Wiggins prayed on the porch of his home in Emerald Isle, N.C., on Sunday. Coal ash is byproduct from ence. But there was too much drivers to steer clear of the coal-fired power plants, which rain: the facility recorded state. Sections of Interstate 95 River lapping over its banks ers lacked power in North Car- bridges could wash away. scrub potential air pollutants about 30 inches of rain since were closed in critical areas, could be heard. The river is olina, and another 61,000 out- Seven rivers in North Caro- from their emissions. That ash Friday. near Lumberton, south of Fay- normally across the street ages were reported in South lina are forecast to reach ma- can contain arsenic, selenium, —Ben Kesling etteville, and near Falcon and from the white house. When Carolina, according to emer- jor flooding levels in the com- lead and mercury. contributed to this article. Dunn, which are north of Fay- Florence swept into town a gency-management agencies. ing days, according to a report etteville. Fayetteville is home to few days ago, the river blew About 17,000 people were stay- by Rick Neuherz, a hydrologist Fort Bragg, the largest military its way into the house before ing in 190 shelters in the Caro- with the National Weather CORRECTIONS AMPLIFICATIONS base in the country. busting through the back door, linas. Service. Some, like the Cape tossing around a red couch, a Fear River and Lumber River, Readers can alert The Wall Street Journal to any errors in news articles by Flooding poses the risk of emailing [email protected] or by calling 888-410-2667. contaminating the state’s drink- baby grand piano and a refrig- could set flooding records, he ing-water supply. North Caro- erator. wrote. lina is a major pork producer, Sunday afternoon, Mr. Some rivers aren’t South Carolina had, for the THE WALL STREET JOURNAL and the concern is that heavy Bowser, 47, and his sons were expected to reach most part, fared better. Gov. (USPS 664-880) (Eastern Edition ISSN 0099-9660) rains could breach the hog- removing debris from the Henry McMaster lifted evacua- (Central Edition ISSN 1092-0935) (Western Edition ISSN 0193-2241) home, where Mr. Bowser’s their highest points tion orders on Sunday morning waste lagoons. Editorial and publication headquarters: 1211 Avenue of the Americas, New York, N.Y. 10036 About 3,300 lagoons re- mother- and father-in-law have until later this week. for the two remaining counties Published daily except Sundays and general legal holidays. quire close monitoring, said lived for 30 years. It isn’t clear that had them in effect: Horry Periodicals postage paid at New York, N.Y., and other mailing offices. Reggie Cheatham, director of when they will be able to re- and Georgetown, in the Myrtle Postmaster: Send address changes to The Wall Street Journal, the Office of Emergency Man- turn. Beach area. 200 Burnett Rd., Chicopee, MA 01020. agement at the Environmen- “We’re glad we didn’t try to Though Florence had crept In Florence County, which All Advertising published in The Wall Street Journal is subject to the applicable rate card, copies of which are available from the Advertising Services Department, Dow Jones & Co. Inc., 1211 Avenue of tal Protection Agency. Most ride this out down here,” he at a snail’s pace across the re- on Saturday lifted evacuation the Americas, New York, N.Y. 10036. The Journal reserves the right not to accept an advertiser’s order. had ample room between the said, stepping carefully across gion for days, it gained speed orders in flood-prone areas, of- Only publication of an advertisement shall constitute final acceptance of the advertiser’s order. waste and the top of the con- the floor to avoid missing on Sunday, moving over the ficials said they feared resi- Letters to the Editor: Fax: 212-416-2891; email: [email protected] tainment pond, he said. boards. “We thought about it.” western Carolinas at 14 miles dents may now be in peril. “Ev- As of Sunday, none had re- His in-laws had their house an hour. It is forecast to curve erybody says, ‘Oh boy, this is NEED ASSISTANCE WITH YOUR SUBSCRIPTION? ported problems. Smithfield raised after Hurricane Fran in north over the Ohio Valley, over,’ and went home, and now By web: customercenter.wsj.com; By email: [email protected] Foods Inc., the largest U.S. pork 1996 took out the foundation, stretching across Ohio, Ken- they’re trapped,” said Sam By phone: 1-800-JOURNAL (1-800-568-7625); Or by live chat at wsj.com/livechat producer, said its slaughtering in the hopes of avoiding such tucky and West Virginia on Brockington, the county’s fire and processing plants so far ap- damage. But Florence spared Monday and head toward the and emergency services coordi- REPRINTS & LICENSING pear undamaged. little on the first floor, leaving northeastern U.S. nator. By email: [email protected]; By phone: 1-800-843-0008 In the living room of high-water marks about 18 Submerged roads have cut —Ben Kesling, Jacob Bunge George Bowser’s in-laws, inches up. off some communities, such as and Rebecca Davis O’Brien GOT A TIP FOR US? SUBMIT IT AT WSJ.COM/TIPS sounds of the swollen Neuse More than 680,000 custom- Wilmington, and low-lying contributed to this article. THE WALL STREET JOURNAL. **** Monday, September 17, 2018 | A3 U.S. NEWS Gas Blasts Traced to Overpressured Pipes

BY JENNIFER LEVITZ indications that Columbia Gas had been evacuated. The Massa- was checking pressure on a dif- chusetts Emergency Manage- BOSTON—Deadly gas explo- ferent line and didn’t under- ment Agency urged residents, sions and fires in three commu- stand what was happening on many of whom remain on edge, nities north of Boston last week the line that became overpres- to “be vigilant” for any signs of occurred after too much natural surized. He said the NTSB will gasorsmoke. gas was pumped into a section examine “what effect, if any, did Mr. Sumwalt said it could of pipe owned by Columbia Gas, this have on the overpressure take 12 to 24 months for the causing the combustible fuel to situation.” NTSB to complete its final re- leak into homes, authorities said NiSource Inc., the parent port, but said the agency could Sunday. company of Columbia Gas, is issue urgent safety recommen- The National Transportation fully cooperating with the inves- dations meanwhile if it finds Safety Board “can confirm at tigation, Joe Hamrock, problems that need immediate this time that this was indeed NiSource’s president and chief fixing. an overpressure situation,” executive officer, said at a news “We want to find out what NTSB Chairman Robert Sum- conference on Sunday. He said happened so that other commu- walt said at a news briefing. the company is “committed to nities don’t have to go through State and federal authorities full transparency and collabora- the devastation that has oc- are investigating after at least tion to get to all of the underly- curred right here in this area,” 60 fires and explosions traced ing causes.” he said. to gas lines erupted Thursday in Mr. Hamrock declined to dis- State authorities said Sunday Lawrence, Andover and North cuss details of the probe, saying that they had completed an ini-

Andover, about 25 miles north WINSLOW TOWNSON/ASSOCIATED PRESS he was deferring to the NTSB to tial recovery phase, turning off of Boston, killing an 18-year-old Columbia Gas employees shut off the natural gas supply to a house in Andover, Mass., on Friday. talk about the investigation. nearly 8,600 affected gas man and injuring multiple peo- “It’s heartbreaking to see this meters, clearing homes of gas ple. homes at “significantly greater” this occurred,” he said. looking at whether construction devastation and this tragedy,” and largely restoring electricity. The NTSB, which investigates rates and pressure than it was Mr. Sumwalt said Columbia the company was doing in the he said. They said gas service would major pipeline accidents as well supposed to, Mr. Sumwalt said. Gas had been in the process of area on Thursday afternoon Authorities gave approval take longer to restore. as transportation incidents, be- “The real question for this in- replacing old cast-iron pipes played a role, he said. Sunday for thousands of resi- —Russell Gold lieves that gas flowed into vestigation is to answer why with new plastic ones. NTSB is Mr. Sumwalt said there were dents to return home after they contributed to this article. Koch Program Links Workouts With Sobriety BY JENNIFER LEVITZ The nearly 11,000-square- foot gym is part of The Phoe- BOSTON—Emily Brawn nix, a Denver-based string of stumbled as she attempted to fitness centers and programs kick opioids a few years ago. for recovering drug abusers. It When she wasn’t at 12-step is spreading nationally with meetings, she grew isolated. the help of management “Days and days in your own coaching and a multimillion- head,” she said. “That is dollar investment from an arm where the relapse starts.” of a donor network founded She is trying a new strat- by the billionaire Koch broth- egy. In early September, 90 ers. The network is better days sober, the 29-year-old known for seeking to advance stepped into a gym in an in- conservative politics and poli- dustrial corner of Boston. cies. Muscled people were warming The Koch network’s Stand up for CrossFit, surrounded Together venture-philan- by top-line equipment and a thropy arm is investing more rock-climbing wall. than $40 million this year in But this gym is different: It nonprofits, including between

is free, and its patrons are $2 million and $3 million in KATHERINE TAYLOR FOR THE WALL STREET JOURNAL (2) beating back drug addictions. The Phoenix. It expects to Michael Underhill at a CrossFit class at The Phoenix. The gym is free, and users have to have been clean for at least 48 hours. The staff’s black T-shirts are continue or increase that level emblazoned with celebratory of funding to The Phoenix in for any tactic to stop deaths Disease Control and Preven- The Koch network, with its we’re saving lives,” said Jac- statements about sobriety. future years, said Stand To- from the still metastasizing tion data show drug-overdose focus on small-government quelyn Hillios, The Phoenix’s “Most of us are in recovery gether Executive Director opioid crisis. That includes deaths topped 70,000 last solutions, is an uneasy ally deputy executive director. ourselves,” Kina Troy, a front- Evan Feinberg. seeking new ways to thwart year, up more than 10% from for advocates battling the Her own political leanings, as counter employee, told Ms. Advocates, officials and potentially deadly relapses. the previous year, driven by opioid crisis. Its political a social worker, she said, Brawn. philanthropists are scouring Preliminary U.S. Centers for opioid fatalities. arm, Americans For Prosper- “don’t get much more lib- Increasingly, evidence sup- ity, campaigns—currently in eral.” ports exercise as a tool to stay Utah and Nebraska—against The Phoenix’s Boston gym, Physical Exertion sober, said Peter Thanos, an efforts to expand Medicaid which also started with help addiction researcher at the under the Affordable Care Act from local donors, is around Is Key, Says Founder University of Buffalo. Steady to cover more low-income the corner from a stretch of exercise can regulate brain adults. road known as “Methadone circuitry linked to feelings of Even before the ACA, Med- Mile.” People sleep along a Scott Strode, who well-being, he said. Addictive icaid was the largest source chain-link fence and use founded The Phoenix 11 years drugs “hijack” that reward of funding in the U.S. for drugs near treatment and so- ago, credits physical exertion system but dull it over time, mental-health care, including cial-service centers. Dis- with fueling his long-running he said, prompting addicts to carded needle caps dot the abstinence from alcohol and chase greater highs to feel pavement. cocaine. normal. Massachusetts opioid-re- A self-described “big bald “In theory, you should be Evidence backs exercise lated deaths are trending guy” with bulging muscles, he able to have an effect on drug- as a tool to stay lower but remain alarming, said the concept is simple: a seeking” through persistent with more than 2,000 last sober social network where exercise, Mr. Thanos said. sober, an addiction year, according to estimates. anyone who is clean for 48 The Phoenix, now in 11 researcher says. Phoenix staffers walk the hours can realize their poten- states and set to move into rough area inviting people to tial through physical fitness. Florida in October, could ex- try the gym, which is offering Phoenix activities, from pand to every state, Stand To- classes such as yoga. They rock climbing to mountain gether officials said. substance-abuse treatment, plan an official grand opening biking, are specifically chosen In Dallas, Koch-network do- according to the Robert Wood on Sept. 29. to increase self-efficacy, the nor Arun Agarwal bought a Johnson Foundation. Dina Gonsalves, who is 51 belief that you can accom- building that will open as a Americans for Prosperity and manages a Boston pizza plish what you set out to do. 7,500-square-foot Phoenix policy manager David Barnes shop, credits CrossFit at People are “so fearful of a gym early next year. He said addiction is a multifac- Phoenix and methadone for relapse that they are locked watched two employees at his eted problem and that it is a helping her recently hit a up at home trying to figure textile company wrestle with mistake to think needs won’t year of sobriety from heroin. out who they are sober,” said painkiller addictions. He said be met “if government isn’t “Within two months, my Mr. Strode, who is 45 years he paid for their treatment, expanding.” body transformed,” she said, old. “I really found out who I but they repeatedly relapsed “Their philosophy and flexing an impressive biceps. was by crossing the finish despite desperately wanting strategy on some of the is- “I was hooked—kind of like Andrea Macone, 35, in Boston, is the Youth and Young Adult lines and climbing mountains.” to stay sober. “It was an eye- sues may not be things that I another addiction, but a posi- Coordinator at The Phoenix and has been sober for four years. opener,” he said. am perfectly aligned to, but tive one.” Border Patrol Agent Is Arrested as Suspect in Four Killings

BY DAN FROSCH managed to escape on Friday. ders,” said Mr. Alaniz, adding She went to local authorities, that he was seeking to charge A U.S. Border Patrol agent and early Saturday, Texas state Mr. Ortiz with four counts of was arrested Saturday on sus- troopers who were on the look- murder and one count of aggra- picion of killing four prosti- out for Mr. Ortiz approached vated kidnapping. tutes and attempting to kidnap him. He fled and was found It wasn’t immediately clear another victim. hiding in a truck in a parking if Mr. Ortiz had an attorney. South Texas authorities said lot in the border city of Laredo. According to Webb County jail Juan David Ortiz, 35 years old, Mr. Ortiz was arrested without records, he was being held on an intelligence supervisor with incident by Texas Rangers, au- $2.5 million bond. the Border Patrol and a 10-year thorities said. Andrew Meehan, a spokes- veteran of the agency, targeted Law enforcement said the man for U.S. Customs and Bor- prostitutes. deaths took place over the past der Protection, said in a state- “The county, the city can two weeks. ment that the Border Patrol rest assured that we have a se- After being apprehended, and the Department of Home- rial killer in custody,” Webb Mr. Ortiz admitted to police land Security Inspector Gen-

County Sheriff Martin Cuellar that he had killed four people, DANNY ZARAGOZA/THE LAREDO MORNING TIMES/AP eral’s office were working with said at a news conference on according to arrest affidavits Law enforcement officers gather near the scene where the body of a woman was found near local investigators on the case. Saturday. released late Saturday. Mr. Or- Interstate 35 north of Laredo, Texas. The suspected killer targeted prostitutes, authorities said. “While it is CBP policy to Isidro Alaniz, district attor- tiz told police he would pick up not comment on the details of ney for Webb County, said that his victims, drive them outside victims on Saturday, apparently grown suspicious of Mr. Ortiz dead victims, whom she knew. an ongoing investigation, crimi- the case broke open after a of Laredo and then shoot them after trying to kidnap the and managed to escape from “There is probable cause to nal action by our employees is woman, whom Mr. Ortiz at- in the head. Mr. Ortiz told po- woman who alerted authorities. his truck after the two of them believe this individual is re- not, and will not, be tolerated,” tempted to kidnap at gunpoint, lice he had killed two of the The woman told police she had began discussing one of the sponsible for this series of mur- he said. A4 | Monday, September 17, 2018 PWLC101112HTGKBFAM123456789OIXX ***** THE WALL STREET JOURNAL. U.S. NEWS In Texas Race, Nafta Fight Looms Large

BY JOSHUA JAMERSON with the $1.2 million in Ms. Ortiz Jones’ coffers. EL PASO, Texas—When Democrats acknowledge it Texas Rep. Will Hurd attended is a challenge to oust Mr. a luncheon with a group of lo- Hurd despite the broader cal CEOs here to update them headwinds facing Republicans on his activity in Washington, this year. he paused when he got “This has been a tough dis- around to the subject of trict,” said Manny Garcia, the Nafta. deputy executive director of The trade agreement with the Texas Democratic Party. Mexico and Canada has been “It takes a premier candidate, a boon to the Republican con- the infrastructure and this gressman’s constituents along mood to all kind of work to- the border, and anxiety has gether.” grown about it since Presi- In a page out of Mr. dent Trump began seeking to Trump’s playbook, Ms. Ortiz revamp it. Jones often personally takes “I shouldn’t say this,” Mr. to her Twitter account to Hurd said before likening his chide Mr. Hurd. views on the Trump adminis- She is also crisscrossing tration’s Nafta negotiations to the sparsely populated and his sentiments on the football often Democratic-leaning program at his alma mater, pockets of West Texas, look- Texas A&M University. “I get ing to boost turnout among excited, I get bummed. I get her party’s base. excited, I get bummed,” he In an interview, Ms. Ortiz said. The two-term congress- Jones criticized Mr. Trump’s man, whose district became a trade posture and Mr. Hurd’s top target for Democrats after wait-and-see approach to the Hillary Clinton beat Mr. Nafta talks. “Many folks don’t

Trump here in 2016, already J. SCOTT APPLEWHITE/ASSOCIATED PRESS ERIC GAY/ASSOCIATED PRESS just have the luxury to take was trying to distance himself Rep. Will Hurd, a Republican, is facing Democratic challenger Gina Ortiz Jones in a Texas district where trade is integral to the economy. the longer view on things,” from Mr. Trump’s immigra- said Ms. Ortiz Jones, who re- tion policies, interactions that has emerged in other hit by retaliatory tariffs, in- Mr. Hurd said in an inter- dozen House Republicans run- cently worked in the office of with Russian President Vladi- competitive House races this cluding one on soybeans im- view that he views a recently ning in districts Mrs. Clinton the U.S. Trade Representative mir Putin and criticism of the year, which complicate the posed by China. reached tentative U.S.-Mexico won in 2016 are, to varying evaluating the potential na- intelligence community lead- GOP’s ability to hold its House Aaron Viramontes, who trade deal as “moving in the degrees, seeking daylight tional-security risks of for- ership. majority. Democrats need a runs a denim-producing firm right direction,” but thinks from a president unpopular eign investments. But it is the economic un- net gain of 23 seats to regain in Far East El Paso, attended the overall rhetoric coming with independents. There are Some Republicans have certainty surrounding Mr. control of the chamber. Mr. Hurd’s lunch with busi- out of the White House on signs the approach is working said Mr. Trump took a politi- Trump’s trade negotiations In Minnesota, the adminis- ness leaders. Mr. Viramontes trade is misguided. for Mr. Hurd; the Cook Politi- cal weight off Mr. Hurd by that could loom largest this tration’s trade battles are said he wanted more clarity “The acute problem is cal Report rates the race as nailing down a preliminary fall in a district like Mr. hurting farmers concentrated from Washington on the fu- Nafta 2.0,” he said of the ef- leaning in his favor over his deal with Mexico, even if Can- Hurd’s that relies on the in the southern half of the ture of Nafta, which in the forts to revamp the trade Democratic challenger, Gina ada ends up excluded from a North American Free Trade state while appearing to help 1990s paved the way for his deal. “The chronic problem is Ortiz Jones, a former Air final free-trade agreement. Agreement for trade across the GOP and iron miners in company to expand into Mex- people understanding the im- Force intelligence officer. Rep. Steve Stivers of Ohio, the border with Mexico. Mr. the north. ico. portance of international Mr. Hurd, unlike some GOP who is chairman of the House Hurd’s district includes about In Kentucky, Republican “It’s confusion, and that’s trade,” he said, noting that a incumbents, also has not been GOP campaign committee, 800 miles of the southern Rep. Andy Barr has expressed holding us back from being Toyota pickup-truck assembly outraised by his Democratic said the tentative deal gave border, more than any other concern about the effect of able to understand Nafta,” Mr. plant in San Antonio supports opponent. Through the end of the incumbent a positive de- district in the country. Mr. Trump’s tariffs on his Viramontes said. “There’s no thousands of local jobs. June, Mr. Hurd had $2 million velopment to talk up on the It is a political challenge constituents, who have been clarification right now. None.” Many of the roughly two in cash-on-hand, compared trail. CAMPAIGNWIRE

FEMA Chief Says No One Asked Him to Leave ECONOMY

BY BEN KESLING caravan of government vehi- ous administrators. lina, these people said. Rico’s 2017 hurricanes was de- Dimon Gives Trump cles—between his North Caro- Mr. Long, speaking from the The department’s inspector vised by Democrats to dis- ‘Pretty Good’ Grade WASHINGTON—The top of- lina home and Washington, FEMA operations center as general probe included surveil- credit him. The study was ficial at the Federal Emergency D.C. The Wall Street Journal Florence lashed the Carolinas, lance of Mr. Long’s trips, ac- commissioned by Puerto Rico’s JPMorgan Chase & Co. Chief Management Agency on Sun- reported Friday that Homeland said officials would work to cording to the people familiar Democratic governor in the Executive James Dimon said he day said he has never been Security Secretary Kirstjen get vehicle-use policies with the matter. face of criticism that his own would give President Trump a asked to resign over an inter- Nielsen had discussed the al- “cleared up and pushed for- Mr. Long, asked Sunday on administration had signifi- “pretty good” grade on eco- nal investigation involving ve- leged improper use of vehicles ward.” NBC about Mr. Trump’s public cantly undercounted the offi- nomic policy, comments that hicle use, and he echoed Presi- with Mr. Long, and told him he Mr. Long routinely traveled derision last week of a study cial toll, which had been 64. came a few days after the dent Trump in casting doubt ought to resign if the matter from Washington to his home about Puerto Rico hurricane The researchers arrived at banker boasted he could beat on a government-backed re- were true. in North Carolina using gov- deaths, said “the numbers are their figure by comparing the Mr. Trump in a head-to-head port on the number of deaths “Secretary Nielsen has ernment vehicles staffed by all over the place.” number of deaths in Puerto election. from last year’s hurricanes in never asked me to resign,” Mr. FEMA employees who often The president last week Rico during a designated period Speaking in an interview Puerto Rico. Long said on NBC’s “Meet the stayed in nearby hotels, ac- said in a tweet, without evi- with past mortality patterns. aired Sunday on ABC News’ FEMA Administrator Brock Press.” He added that the vehi- cording to the people familiar dence, that a George Washing- Researchers concluded that in “This Week,” Mr. Dimon said Long said he was cooperating cles provide him with secure with the matter. Since taking ton University study that esti- many cases, physicians failed to tax cuts, deregulation and a with the investigation into fre- communications capabilities the job, Mr. Long has spent mated nearly 3,000 people link deaths from such causes as generally warm view toward quent travel—and the use of a that have been used by previ- some 150 days in North Caro- died in the aftermath of Puerto cardiac arrest to the hurricane. business have helped boost consumer confidence and growth. and Murkowski didn’t respond “It’s impossible for me to to a request for comment Sun- tease out how much, but it has Kavanaugh day. helped the economy,” Mr. Dimon Mrs. Ford is a research psy- said. chologist at Palo Alto, where The JPMorgan CEO and Accuser she teaches in consortium chairman also repeated his re- with Stanford University. A gret for his earlier criticism of university spokeswoman Mr. Trump, who hit back on Speaks Out didn’t reply to requests for Twitter by calling Mr. Dimon “a more information. poor public speaker & nervous ContinuedfromPageOne She graduated from the all- mess.” Mr. Dimon had said at a vote to hear from Mrs. Ford, girls Holton-Arms School in Sept. 12 bank event that he while Sen. Susan Collins (R., Bethesda, Md., not far from was “as tough” as Mr. Trump Maine) told CNN she was dis- the Georgetown Preparatory and was “smarter” than the cussing the matter with col- School Mr. Kavanaugh at- president. leagues. tended. She was among thou- “It also proves I wouldn’t be Mrs. Ford, in the Post arti- sands of mental-health profes- a good politician,” said Mr. Di- cle, said that when she and sionals and researchers who mon, who added that he Judge Kavanaugh were teenag- signed onto a Physicians for doesn’t plan a run for the ers at a party in the Washing- Human Rights letter to the White House. Asked if that ton, D.C., area, he and a friend Trump administration in June meant he would never seek the pulled her into a bedroom. denouncing the administra- office, Mr. Dimon said, “I never

Judge Kavanaugh pinned her ALEX WONG/GETTY IMAGES tion’s immigration policy that say never to anything, but no.” down on the bed, groped her Judiciary Committee Chairman Chuck Grassley and ranking committee member Dianne Feinstein caused family separations at —Dave Michaels and attempted to remove her the U.S. border, according to a clothing before she escaped, in public. Sen. Chuck Schumer of New fight particularly high-stakes copy of the letter. CAMPAIGN SPENDING Mrs. Ford said in the article. The outlines of Mrs. Ford’s York, the Democratic leader, for Democrats.. She also works as a biostat- Mrs. Ford, who is a profes- allegation emerged publicly called on Mr. Grassley to delay Taylor Foy, the Grassley istician and has co-written Roberts Stays sor at Palo Alto University in several days ago when Sen. Di- the panel’s vote. Democrats spokesman, said earlier Sun- more than 50 scientific books Ruling On Disclosing California, described the epi- anne Feinstein of California, have pushed for weeks for a day that Democrats should and publications, the alumni sode as aggressive. “I thought the top Democrat on the Sen- slower process, saying many have brought the allegations magazine said, noting that she Donors he might inadvertently kill ate Judiciary Committee, said documents relevant to Judge to the Judiciary Committee is an “avid surfer, and she and me,” she told the Post. she had reported a matter in- Kavanaugh’s background earlier. Mrs. Feinstein has said her family spend a great deal Outside political groups are Judge Kavanaugh, 53 years volving Judge Kavanaugh to hadn’t been released. she didn’t raise the matter of time surfing in the Santa very publicly spending millions old, denied the assertions the Federal Bureau of Investi- AnyslowdownoftheKa- earlier because Mrs. Ford was Cruz and San Francisco areas.” of dollars ahead of the midterm when they began to surface, gation. Mrs. Feinstein didn’t vanaugh nomination would be hesitant to come forward. Mrs. Ford, using her profes- elections—often with the sup- without the accuser’s name, initially name Mrs. Ford, say- The judge has been ex- sional name, Christine Blasey, port of very private donors. And last week. “I categorically and ing the individual had re- pected to be approved on a has made three donations it looks like it’s going to stay unequivocally deny this allega- quested confidentiality. party-line vote in the GOP- since January 2017 totaling that way, for now, following a tion,” Judge Kavanaugh said in On Sunday, Mrs. Feinstein The judge has been controlled Judiciary Commit- $42 to Act Blue, an online ser- move Saturday by the chief jus- a statement released through confirmed in a statement that expected to be tee. In the full Senate, he vice that provides a one-stop tice of the U.S. Supreme Court. the White House. “I did not do Mrs. Ford was the person who would need a simple majority donation platform used by In August, a federal judge this back in high school or at had made the allegations. approved on a party- to be confirmed. There, Mrs. Democrats seeking office. ruled that Federal Election any time.” “I support Mrs. Ford’s deci- line vote. Ford’s decision to speak pub- Mrs. Ford provided several Commission regulations allow- Efforts to reach Mrs. Ford sion to share her story, and licly is likely to focus more at- previously unreported details ing donors who support outside weren’t successful. The White now that she has, it is in the tention on the two GOP sena- to the Post, saying she had political groups to remain anon- House didn’t change its stance hands of the FBI to conduct an tors whom Democrats have discussed the alleged incident ymous “blatantly undercuts the after she came forward. investigation,” Mrs. Feinstein a bitter pill for a Republican targeted as most likely to de- in 2012 when she and her hus- congressional goal of fully dis- “On Friday, Judge Ka- said. “This should happen be- leadership that has banked on fect in a floor vote on Judge band, Russell Biddle Ford, closing the sources of money vanaugh ‘categorically and un- fore the Senate moves forward a swift confirmation to install Kavanaugh: Susan Collins of were in couples therapy. flowing into federal political equivocally’ denied this allega- on this nominee.” him before the next court ses- Maine and Lisa Murkowski of The therapist saved her campaigns.” Chief Judge Beryl tion. This has not changed,” Mr. Flake, in his interview sion begins in early October Alaska. notes, which describe Mrs. A. Howell gave the FEC 45 days White House spokeswoman Sunday evening, added, “We and safely ahead of Novem- Neither senator has raised Ford recounting being as- to issue interim regulations. Kerri Kupec said in a state- said before that these allega- ber’s midterm elections. serious concerns about Judge saulted by students “from an But Chief Justice John Rob- ment Sunday. “Judge Ka- tions were anonymous and un- Judge Kavanaugh, nomi- Kavanaugh, but both are elitist boys’ school,” but didn’t erts on Saturday stayed that vanaugh and the White House corroborated. That is no lon- nated in July to succeed the strong supporters of women’s name Judge Kavanaugh, the federal court ruling, which could both stand by that statement.” ger true.” Mr. Flake, who is retiring Justice Anthony Ken- rights who Democrats believe article said. have required so-called dark It is unclear whether Mrs. retiring after this term, has nedy, is expected by many to might support a delay in the —Dave Michaels, Natalie money political groups to dis- Ford would testify before the occasionally criticized Presi- shift the court further to the confirmation process. Andrews and Jess Bravin close their donors. committee, either in private or dent Trump. right, making his confirmation The offices of Sens. Collins contributed to this article. —Andrew Duehren A6 | Monday, September 17, 2018 THE WALL STREET JOURNAL. WORLD NEWS Pyongyang Skirts Curbs, U.N. Says Moon Set

Report alleges China, an address for the company in To Discuss Shenzhen, China. A Journal re- Russia maintain trade porter tried to visit the site ties despite sanctions; but found it didn’t exist. EndtoWar Mr. Kuah didn’t respond a blow to U.S. goals when asked to whom he later sold the radios. Under U.N. sanc- With North Fresh doubts are emerging tions, any trade in North Korean BY JONATHAN CHENG about the potency of a U.S.-led military equipment is illegal. sanctions campaign aimed at Deliveries of petroleum SEOUL—With denucleariza- crippling North Korea’s econ- products to North Korea, mean- tion talks between the U.S. and omy and forcing the country while, represent a particularly North Korea stalled, South Ko- to end its atomic-weapons difficult problem for Washing- rean President Moon Jae-in is programs, as denuclearization ton because they offer a lifeline set to visit Pyongyang on Tues- talks have stalled. to North Korea’s economy. day in a bid to revive diplomacy U.N. sanctions imposed late after a summer of challenges. By Ian Talley in last year amounted to a nearly At a planned three-day Washington, Chun Han 90% ban on oil and refined pe- summit, Mr. Moon and North Wong in Hunchun, troleum, which the Security Korean leader Kim Jong Un China, and Tom Wright Council has said are vital to are expected to hold talks on a in Kuala Lumpur, Pyongyang’s military and nu- declaration to formally end Malaysia clear programs. the Korean War, more than six The Journal reported last decades after fighting was A confidential new United week that North Korean ships halted by an armistice.

Nations report, reviewed by The AHN YOUNG-JOON/ASSOCIATED PRESS had brought in at least 89 illicit North Korea sees a perma- Wall Street Journal, says Pyong- South Korean President Moon Jae-in, right, and North Korean leader Kim Jong Un met in April. cargoes of fuel in the first five nent peace deal as an impor- yang, often with help from peo- months of the year via ship-to- tant indication that Washing- ple in Russia and China, has cades of international pres- ship transfers, primarily with ton is willing to end what it been able to circumvent restric- sure, it has built a resilient Scant Impact Chinese or Russian counter- calls a hostile policy toward tions, rendering “the latest U.N. web of funding streams and Despite ﬂuctuations, two measures of North Korea’s economy, parts. The estimated volume is Pyongyang—and a step toward sanctions ineffective.” trade networks that are diffi- exchange rates and gasoline prices, remain relatively unchanged. roughly one-third of the coun- removal of U.S. forces from Citing U.S. intelligence, U.N. cult to completely sever. try’s average consumption be- South Korea. investigators found a “massive There is little doubt North Unofﬁcial exchange rates in the Gasoline prices in Pyongyang, fore the current sanctions re- In exchange, U.S. and South increase” in fuel shipments to Korea’s economy is being hurt, border city of Sinuiju in North Korean won gime was put into place, Korean experts believe that the North Korea involving Russian but the country’s tactics could 8,000 won per dollar 30,000 per liter according to the U.S. Energy South Korean delegation will and Chinese ships, as well as give it breathing room as ne- Information Administration. push the North to produce a numerous examples of coal gotiations with Washington North Korea’s Chon Ma San detailed inventory of its nu- shipments to China from have reached an impasse. made four deliveries in April clear and missile programs, North Korea. “I’m very concerned that 20,000 and June, delivering up to something it has never before The U.N. report also called our maximum-pressure cam- 74,000 barrels of fuel oil into been willing to do. out Chinese companies for paign is faltering,” Ed Royce, 8,500 the country’s Nampo port weeks Negotiations between buying tens of millions of dol- the Republican House foreign- after the U.N. blacklisted it, ac- Washington and Pyongyang 10,000 lars of North Korean iron, affairs committee chairman, cording to U.S. intelligence re- are at an impasse, three steel and other products. Chi- said last week. “Kim appears ports reviewed by the Journal. months after President Trump nese firms have maintained to be using talks, as he has Although North Korea’s met Mr. Kim in Singapore and joint ventures with North Ko- time and time again, to probe 9,000 SCALE INVERTED 0 tightly sealed borders and lim- the two men signed an agree- rean partners, despite a U.N. for weaknesses and buy time.” ited information flow make it ment to denuclearize the Ko- ban last year, the report says. Top Trump officials say the 2017 2018 2017 2018 hard to assess how deeply sanc- rean Peninsula. Pyongyang has Chinese tourism to North Ko- negotiations are proof the Source: NK Daily THE WALL STREET JOURNAL. tions are affecting the country’s balked at Washington’s push rea is rebounding. pressure campaign is working, economy, they are widely be- for a rapid dismantling of its All of that amounts to a se- but have expressed growing arms trafficker brokered a deal Kuah, who runs Fabulous Sys- lieved to have had an impact atomic-weapons programs, rious setback for what the frustration in recent months for Houthi rebels in Yemen to tem Bhd., a Kuala Lumpur- last year, when the economy is while North Korea has said the Trump administration calls a over what they see as easing buy rocket-propelled grenades, based company that sells mili- thought to have contracted. U.S. is dragging its feet on the maximum-pressure campaign enforcement by China and ballistic missiles and other tary radios, says he purchased Many economists speculate end-of-war declaration. to isolate North Korea, cut off Russia, in particular. weapons from North Korea. battlefield radios this year from Pyongyang is burning though “The South Korean position its energy supplies and curb Other evidence suggests One of the best-known busi- Glocom after locating it online. its foreign-currency reserves to is, ‘Why don’t you simultane- its ability to raise money North Korea is earning signifi- nesses linked to Pyongyang, a Glocom uploaded new mar- help prop up the won and pre- ously exchange?’” said Moon through exports. cant sums of money from military communications keting videos to YouTube this vent hyperinflation, forecast- Chung-in, a senior adviser to China and Russia have re- overseas businesses and guest equipment company called year and advertises multiple ing more pain likely by 2019. South Korea’s president. jected U.S. accusations they workers, including North Ko- Global Communications Co. and products on Twitter. But others argue the won’s sta- If all goes well, the meeting aren’t fully enforcing U.N. rean restaurants that were described by the U.N. as a front Mr. Kuah said he had no bility shows sanctions haven’t of the Korean leaders could help sanctions on North Korea. supposed to close but remain for North Korean intelligence, idea of Glocom’s ties to North been as effective as hoped. pave the way for a second meet- Pyongyang disputes the sanc- open in some countries. continues operating despite be- Korea, believing at first the “It’s not in China’s interests ing between Messrs. Trump and tions’ legality. The new U.N. report also ing cited in U.N. reports. equipment was South African to squeeze North Korea to the Kim, which the White House has Pyongyang’s success in found North Korean involve- Malaysia’s government said based on its appearance. An in- brink of collapse,” said Cheng hinted at in recent days. skirting export and import ment in illicit arms sales, cit- it closed Glocom’s operations in voice provided by Mr. Kuah for Xiaohe, an associate professor Since the June U.S.-North limits shows that after de- ing evidence that a Syrian the country last year. Yet Mike the radios he bought showed at Renmin University in Beijing. Korea summit, satellite imag- ery has shown North continuing to expand its nuclear and missile facilities, even as it

The visit could spur a second meeting between President Trump and Mr. Kim.

dismantled other sites. The U.S. has continued to impose economic sanctions and sparked an angry retort from Pyongyang on Friday after bringing charges against a North Korean citizen that Washington said master- minded cyberattacks against the U.S. and others. Mr. Trump canceled a planned trip to Pyongyang by Secretary of State Mike Pompeo and his special envoy on North Korea, Steve Biegun, citing slow progress on denuclearization. As progress has flagged between the U.S. and North Ko- rea, the two Koreas have pushed ahead with a detente.

ANTHONY KWAN/BLOOMBERG NEWS (2) On Friday, the two sides Firefighters help people through Hong Kong’s floodwaters, The storm landed in thePhilippines then struck Hong Kong, below, and theChinese mainland. opened a liaison office north of the demilitarized zone. The South Korean president will also bring a large business Typhoon’s Trail of Ruin: ‘An Epic Storm’ delegation with him. U.S. officials have stressed Typhoon Mangkhut, the is about twice the 90 mph building swaying. that improved inter-Korean re- world’s most powerful storm winds generated by Hurricane “It felt totally surreal,” said lations can’t happen in isola- this year, skidded into main- Florence, which struck the U.S. Jim Tai, 33, a resident origi- tion from efforts to resolve land China on Sunday after The typhoon slowed on Sun- nally from Arizona. He said he Pyongyang’s nuclear program. claiming at least 59 lives in the day, its maximum sustained saw tree branches and plastic This week’s inter-Korean Philippines and pummeling wind speeds falling to around bags flying past his window as summit will be the third this Hong Kong and Macau during a 120 miles an hour—still power- well as curtains sucked out year between the leaders of devastating churn across the ful enough to threaten lives from the broken windows of the two sides of the divided tropical-storm prone region. and property. Authorities nearby buildings.”I’ve been peninsula. The pair first met downgraded it to a severe ty- through Hurricane Sandy in in April amid a burst of bon- By John Lyons phoon from supertyphoon. New York, but this felt totally homie that included North Ko- in Hong Kong and Even as the death toll rose different—today’s was an epic rea’s participation in the Win- Jake Maxwell Watts in the Philippines, the 500- storm,” Mr. Tai said. ter Olympics in the South. in Manila mile-plus diameter storm was Mangkhut made landfall in Mr. Moon comes into the less destructive than previ- mainland China in the southern summit in a much weaker po- In the Philippines, rescuers ously feared, largely missing Guangdong province Sunday litical position than he had in searched for victims of land- major population centers. It afternoon. Over 2.45 million April. After that first summit, slides responsible for most of skimmed the northern tip of evacuation centers. lying areas. people in Guangdong were his domestic approval rating the deaths there. In Hong the Philippines, sparing the The Philippines may have Airlines canceled flights, evacuated, state media said. was above 80%; this month, it Kong, emergency workers cut capital Manila, and then deliv- benefited from improved pre- trees toppled onto cars and au- Residents of Shenzhen, a gi- fell below 50% for the first away trees that fell in major ered a glancing blow to Hong paredness. Five years ago, a thorities warned Hong Kongers ant manufacturing and tech time. roadways, as the city began Kong. storm killed some 6,300 people to remain inside. In a city hub just over the Chinese bor- In exchange for an end-of- what will be a major cleanup. Rescue efforts continued as and sparked criticism that famed for its skyscrapers, some der from Hong Kong, reported war declaration, the South Ko- Typhoon Mangkhut packed officials sought to restore emergency authorities had expressed concerns about tall widespread flooding in coastal rean president is expected to sustained winds as high as 170 power and communications to failed to get ready. buildings moving in the wind. districts. push Mr. Kim for a specific ac- miles an hour, equivalent to a the most affected areas of the The storm also produced big A resident who lives on the —Trefor Moss in Shanghai counting of the North’s nu- Category 5 hurricane, accord- Philippines and return people waves and tidal surges that 32nd floor of an apartment and Natasha Khan clear-arms and ballistic-mis- ing to the U.S. military’s joint to their homes. More than flooded Hong Kong’s coastlines, building in the Wan Chai dis- in Hong Kong sile programs—an important Typhoon Warning Center. That 154,000 had sought shelter in prompting evacuations in low- trict said he could feel the contributed to this article. step toward dismantling them. A8 | Monday, September 17, 2018 ** THE WALL STREET JOURNAL. WORLD NEWS

Kenyan Eliud Kipchoge Sets World Record in Berlin Marathon WORLDWATCH

EGYPT months in jail they had already served while awaiting criminal Sons of Ex-President trials in other matters. Mubarak Arrested Gamal Mubarak, an investment banker and senior official Egyptian authorities detained in the ruling party, was widely and imprisoned two sons of de- seen as being groomed for the posed President Hosni Mubarak presidency. in connection with longstanding —Jared Malsin charges of insider trading. The arrest of Gamal and Alaa MEXICO Mubarak was a reminder of what many Egyptians regard as an era López Obrador Picks of corruption and repression in Civilian for Security the final years of Mr. Mubarak’s regime before he was ousted in a Mexico’s president-elect kicked 2011 popular uprising. off a nationwide tour with his new The case against the two be- head of security in tow: a restau- gan in 2012 with prosecutors al- rant owner named Daniel Asaf leging they broke financial trad- who will coordinate a civilian bri- ing rules in a deal involving gade in lieu of the Mexican equiv- shares of Egypt’s Al Watany alent of the U.S. Secret Service. Bank. They have denied the Andrés Manuel López Obrador, charges. who takes office Dec. 1, intro- It wasn’t clear on Saturday duced Mr. Asaf to reporters at why the Cairo criminal court or- Mexico City’s international airport dered the Mubarak sons arrested before departing for Tepic, capital now. of the western state of Nayarit. The men were convicted in He said Mr. Asaf will organize 20 May 2015 in a separate case of civilian assistants who will rotate

ROBIN UTRECHT/AGENCE FRANCE-PRESSE/GETTY IMAGES embezzling millions of dollars of five at a time to accompany him TIME TO SPARE: Eliud Kipchoge shattered the world record in the Berlin Marathon on Sunday by more than a full minute, running government funds. But a court so he can interact with voters 2:01:39 to establish the Kenyan athlete as one of the best distance runners in history. Kipchoge, 33, is the reigning Olympic champion. freed them months later after a without getting squashed. judge credited them for the 43 —Associated Press

with earlier rounds, the reflects the president’s per- straints” as a way to hit back administration officials are pleas from importers and oth- Trump administration will sonal desire, according to peo- at the U.S., in addition to re- looking at lowering the tariff ers asking to be spared. Trade have levied duties on about ple familiar with administra- taliatory tariffs it has already rate on the $200 billion in The announcement ex- half of the more than $500 bil- tion deliberations, to show deployed, former Finance Min- goods to about 10%—down pected early this week will in- lion in Chinese goods that en- Beijing that he is willing to ister Lou Jiwei told a gather- from the 25% level they said in clude a final list of those Threats ter the U.S. each year, a con- step up the pressure, that he ing of Chinese and American early August that they would goods, and companies will be siderable escalation coming feels he has the upper hand in academics and business execu- impose on those imports, ac- studying it closely to see if amid a series of other U.S. ini- the conflict, and that if tariffs tives Sunday. cording to people familiar any changes were made in re- Ramp Up tiatives aimed at overhauling and diplomacy conflict, he will At the same time, Trump with the emerging plans. sponse to their input. the country’s trade policy. choose tariffs. officials appear to be trying to After negotiations among Another big question will ContinuedfromPageOne Mr. Trump’s aides are locked For its part, China shows no balance the president’s desire Mr. Liu, Mr. Mnuchin, and be the effective date that the tiate with a gun pointed to its in tense negotiations with Can- signs of backing down, and it is to squeeze China with con- other members of the Trump administration sets for the head,” said a senior official ada to rewrite the quarter-cen- unclear what fresh concessions, team failed to resolve differ- new tariffs. In the past round, who advises the leadership on tury-old North American Free if any, Mr. Liu would offer on a ences, Mr. Trump imposed 25% the tariffs took effect less than foreign-policy matters. Trade Agreement by a month- Washington trip. Indeed, some tariffs on $50 billion in Chi- three weeks after the final list White House spokeswoman end deadline, as the president Chinese officials advising the Talks with China nese goods earlier this sum- was released. If officials follow Lindsay Walters declined to threatens to expel Ottawa from leadership are proposing to come amid a series of mer. China retaliated by impos- that practice, the duties would comment on the status of the the pact that also includes step up the trade fight a notch ing tariffs on the same amount be in place by early October. tariff discussions inside the ad- Mexico. Talks between the U.S. by restricting China’s sales of U.S. initiatives to of U.S. goods. Mr. Trump re- Advocates of further nego- ministration, referring to a Fri- and Canadian chief negotiators materials, equipment and other overhaul trade policy. sponded by threatening to im- tiations hope that a later ef- day statement that said: “The ended inconclusively last week parts key to U.S. manufactur- pose tariffs on $200 billion in fective date might leave the president has been clear that he The Trump administration’s ers’ supply chains. additional Chinese goods. door open to further talks, es- and his administration will con- two-track approach to China— Such restrictions could In July, the administration pecially if the Chinese were tinue to take action to address new import taxes looming on even apply to Apple Inc.’s cerns about hurting U.S. con- unveiled a 195-page list of given a signal that the out- China’s unfair trade practices. $200 billion in goods, twinned iPhones, which are assembled sumers reliant on cheap Chi- products it was considering come of those discussions We encourage China to address with a willingness to hold new in the mainland, officials said, nese imports—especially in for those tariffs—from fish to had a chance of staving off or the longstanding concerns high-level talks—shows divi- without elaborating. Apple the middle of a difficult elec- luggage to semiconductor diminishing the planned tar- raised by the Unites States.” sions inside the Trump team. didn’t respond to a request for tion campaign season for his equipment—and held more iffs. With the expected new The next stage of Mr. Trump’s comment. Republican Party. than a week of public hearings —Tripp Mickle round of U.S. tariffs, combined unfolding China strategy also China can adopt “export re- In a nod to those concerns, in late August, listening to contributed to this article.

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BY GIOVANNI LEGORANO to pay their salaries much vails are deeply embarrassing longer. and potentially damaging to a ROME—Italian nativist poli- Unless the League can suc- movement that promised Ital- tician Matteo Salvini, whose cessfully appeal for the penalty ians a new kind of politics. popularity has surged since he to be reversed or watered down, “This is a real problem for the 5 became interior minister in Italy’s main far-right party Star and they won’t be able to June, has hit his first setback. could seek to avoid paying by be too lenient with the League His anti-immigration League reconstituting itself under anon this,” said Giovanni Orsina, a party faces possible bankruptcy other name. League officials are history professor at Rome’s LU- from a penalty assessed for past already considering that option, ISS University. corruption. people familiar with the matters Alessandro Di Battista, a Mr. Salvini’s governing part- say, though Mr. Salvini has pub- leading 5 Star politician, told ners, the anticorruption 5 Star licly said it won’t happen. Italian TV that if he were a Movement, have pressed him to The case has led to the first League supporter he would ex- comply with a court ruling last serious rift between the League pect Mr. Salvini to repay the week that the League must and its governing partner, the 5 €49 million. “That’s taxpayers’ repay €49 million ($56.9 Star Movement, whose raison money. Court decisions must be million) of public funding for d’être is to clean up Italy’s rot- respected,” Mr. Di Battista said. election costs stretching back a ten political class. Officials in The stiff penalty isn’t Mr. decade. The ruling stemmed the coalition, which took power Salvini’s only legal headache. He from a conviction, now under on June 1, say they don’t expect has also recently been placed appeal, of the League’s former the alliance to break apart over under judicial investigation re-

leaders for embezzling public MISTRULLI/FOTOGRAMMA/ROPI/ZUMA PRESS the issue. However, the case garding allegations that he election funds. Matteo Salvini’s party says it lacks funds to pay a court penalty. highlights the prospect that It- abused the office of interior Mr. Salvini’s party says it aly’s coalition government join- minister when he refused for doesn’t have the money. Its offi- ever, the usually blunt party gration party with growing na- the contest between Europe’s ing two starkly different kinds five days to let scores of asylum cials say the League’s existence leader has reacted calmly by his tionwide support. The League traditional political class and its of populism might not last long. seekers disembark from an has been put in jeopardy by the combative standards. “There are won 17% of the vote in Italy’s populist upstarts. The 5 Star Movement, which Italian coast-guard ship that court’s demand that all its fu- some judicial investigations,” he parliamentary elections this But if the judiciary seizes all promises voters a crackdown on had rescued them in the Medi- ture proceeds be seized until said last week. “I hope they’ll March, but opinion polls now of the League’s future funds as corruption and poverty, and the terranean Sea. Public prosecu- the full €49 million is repaid. conclude well and quickly.” say more than 30% of Italians threatened, “at that point it is League, which pledges to slash tors in Sicily, where the ship When court rulings in the The bearded 45-year-old for- support the party. clear that a political party immigration and taxes, have docked, are probing whether long-running case first began to mer journalist, known for his Mr. Salvini’s verbal attacks ceases to exist,” Giancarlo Gior- little in common apart from Mr. Salvini’s move amounted to go against the League last year, provocative rhetoric on mi- on established authorities in It- getti, Mr. Salvini’s right-hand their antipathy to Italy’s previ- kidnapping. Mr. Salvini lashed out against grants and law and order, has aly and the European Union, of- man and a senior government ously incumbent centrist Mr. Salvini rejects the the judiciary, calling its earlier transformed the League from a ten delivered in video ha- official, said recently. The establishment. charges. “I would do it again,” seizure of a smaller sum “an at- northern Italian secessionist rangues on Facebook, have League has already warned its 5 Star officials privately say he told League supporters last tack on democracy.” Now, how- movement into an anti-immi- made him a leading player in employees it might not be able their partner’s corruption tra- week. Brexit Dilemmas Top Agenda at EU’s Salzburg Summit BY LAURENCE NORMAN been minimal since April. ropean leaders want to help sembly plant for Chinese and but the other 27 leaders will from the bloc some of the es- AND STEPHEN FIDLER The informal gathering of Mrs. May ahead of a Conser- other non-EU manufacturers discuss it without Mrs. May timated $50 billion divorce EU leaders in Salzburg—the vative party annual conference with privileged access to the over lunch Thursday. bill if an agreement fails. BRUSSELS—European first of three likely summits starting Sept. 30, hoping to bloc’s 500 million people. There the focus will be on On the British side, officials Union leaders will hold their over as many months at which ward off more British political In Salzburg, Mrs. May is ex- whether to schedule a special believe the EU is overestimating first serious discussions on Brexit will be discussed—has chaos that could further set November summit to finalize London’s willingness to compro- Brexit since March at a sum- been preceded by warm words back negotiations. the deal and whether to mise on its proposed “backstop” mit in Austria on Thursday as from the EU side. Behind the scenes, however, The EU summit on amend the negotiating man- plan to avoid a physical border the U.K. and the rest of the EU leaders are aware that many in the EU say Mrs. May’s date of Michel Barnier, the between the British province of bloc step up preparations to British Prime Minister The- proposal—which aims to give Thursday is the first EU’s chief negotiator, to say Northern Ireland and EU mem- reduce major economic dis- resa May is under pressure British firms frictionless ac- of three expected in as more about the EU’s future re- ber Ireland. ruptions if a deal isn’t from anti-EU lawmakers in her cess to the EU market in lationship with Britain. If they The two sides must secure reached. Conservative Party. That has goods—is unacceptable. many months. agree, changes to the mandate a legally binding withdrawal On the face of it, negotia- intensified after a proposal for They see it as undermining may be made at a scheduled agreement over the divorce tors are advancing toward an future relations with the EU the bloc’s own outstanding summit in October. that includes the financial agreement that must be set- was agreed by her cabinet in economic achievement: its sin- Mrs. May, who is facing al- settlement that Britain would tled, drafted and ratified be- July at the prime minister’s gle market in goods, services, pected to set out her latest most daily speculation about a pay to the EU. Officials say fore Britain leaves the bloc country retreat at Chequers, labor and capital. They say thoughts on Brexit at a dinner leadership challenge within that is 80% done, with a few next March 29. In reality, prompting the resignation of Mrs. May’s plan would allow Wednesday of all 28 EU lead- her party, said Wednesday big issues, especially Ireland, progress toward a deal has two prominent ministers. Eu- Britain to become a giant as- ers. No talks are expected then that Britain could withhold unresolved. Ehrman Needlepoint Kits WILLOW PATTERN BLUE Create something personal and special for your home with one of these beautiful needle- KASBAH point kits. Only one simple stitch is used and the design is worked on a pre-printed color canvas so no expertise is required. Stitching one of these designs is a great way to relax and each kit comes complete with everything you need: the 100% cotton canvas printed in full color, all the 100% pure new wool required, a needle, a color chart and an easy to follow guide to get you underway. Needlepoint is a pastime that gives a lifetime of pleasure and if you haven’t tried it before one of these kits would be an ideal way to start.

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messages asking them if they Amazon would like to provide these services in exchange for cash, according to brokers and sell- Employees ers who say they have been approached by brokers. The going rate for having Face Probe an Amazon employee delete negative reviews is about $300 per review, according to ContinuedfromPageOne people familiar with the prac- have relatively small salaries, tice. Brokers usually demand a which might embolden them five-review minimum, meaning to take risks. that sellers typically must pay In exchange for payments at least $1,500 for the service, ranging from about $80 to the people said. more than $2,000, brokers for For less money, sellers can Amazon employees in Shen- buy from Amazon employees zhen are offering internal the email addresses of cus- sales metrics and reviewers’ tomers who write reviews. email addresses, as well as a This gives sellers the opportu- service to delete negative re- nity to reach out to customers views and restore banned Am- who have written negative re- azon accounts, the people views and try to persuade said. them to adjust or delete those Amazon is investigating in- reviews, sometimes by offer- cidents involving employees, ing free or discounted prod- including some in the U.S., ucts, the sellers and brokers suspected of accepting these say. Amazon prohibits this bribes, according to people fa- practice.

miliar with the matter. An in- MATT ALEXANDER/ZUMA PRESS Brokers also offer proprie- ternal probe began in May af- Potential internal corruption is the latest challenge Amazon faces with its platform, following fake reviews and counterfeit goods. tary sales information, such as ter Eric Broussard, Amazon’s the keywords customers typi- vice president who oversees spokeswoman added in a Sellers must aggressively cally use to search for items international marketplaces, statement. compete to get their products Sales Force on Amazon’s site, sales volume was tipped off to the practice That goes for sellers, too. noticed on the first page of The majority of Amazon’s merchandise sales come from and other statistics about buy- in China, people familiar with “We have zero tolerance for search results, where custom- third-party merchants. ers’ habits, according to the the matter said. Amazon has abuse of our systems and if we ers typically make most of people. Having this informa- since shuffled the roles of key find bad actors who have en- their purchase decisions. Estimated gross merchandise volume tion enables Amazon sellers to executives in China to try to gaged in this behavior, we will Amazon’s automated sys- $125 billion craft product descriptions and root out the bribery, one of take swift action against tem ranks the products based advertisements in a way that these people said. them,” she said. on several factors, including boosts their rankings in search Internally, Amazon has Potential internal corrup- the quality of verified reviews, 100 results. Amazon doesn’t dis- worked hard to stop sellers tion is the latest challenge the number of times custom- close this type of detailed from gaming its systems, but Amazon faces in upholding its ers click on a product and its sales information. it can sometimes be a Whac-A- platform’s integrity, after sales volume. Some sellers 75 Amazon At a recent conference Mole situation as swindlers problems with fake product have sought to game the sys- retail hosted for sellers—which get more creative, according reviews and counterfeit mer- tem by employing tricks such sales wasn’t run by Amazon—a bro- to former Amazon executives chandise. as paying someone to click re- ker pulled up internal keyword 50 and other people familiar with For the past few years, Am- peatedly on a listing or create Third-party results on his laptop. The bro- the company’s thinking. azon has recruited indepen- fake positive reviews, The merchant ker said $80 can buy informa- An Amazon spokeswoman dent merchants to sell their Wall Street Journal has re- sales tion on sales data; the number said the company has strict products on the company’s ported. Amazon has fought 25 of times users searched for a policies and a code of business marketplace, something that these attempts. certain product and clicked on conduct and ethics, and it has both widens the variety of One of the newer ways a product page; which sellers installed systems to restrict products offered on the site some sellers are seeking an 0 are bidding for advertise- and audit what employees can and reduces prices. More than edge over rivals is getting ac- 2015 ’16 ’17 ’18 ments; and how much those access. two million merchants now cess to Amazon employees. Sources: the company (retail sales); cost, according to the person The company confirmed it sell an estimated 550 million Some midlevel Amazon em- FactSet (third-party sales) THE WALL STREET JOURNAL. who viewed the results. is investigating the claims. products on Amazon, repre- ployees in China have the One Chinese Amazon seller “We hold our employees to a senting more than half of all power to delete negative re- licit transactions between and sellers who want negative said competition on the web- high ethical standard and any- units sold on the site and con- views and can access the email third-party sellers and Ama- reviews deleted or access to site had become so heated one in violation of our Code tributing an estimated $200 addresses of users who have zon employees in southern internal sales information. that he is tempted to use illicit faces discipline, including ter- billion in gross merchandise purchased specific items and China. Brokers search for Amazon tactics to gain an edge. “If I mination and potential legal volume last year, according to written reviews of them, said Brokers are the middlemen employees on Chinese messag- don’t do bad things, I will die,” and criminal penalties,” the FactSet estimates. a person who has facilitated il- between Amazon employees ing platform WeChat and send he said of his business.

tax law. quarter data. “There are reasons $67.5 billion in cash and invest- said other features of the re- borders. Some U.S. states tax re- Overseas In all, while repatriations to expect that pace to remain ments the company reported vamped law are likely to have patriated profits, and some have soared past pre-2018 lev- strong, as large scale corporate holding overseas last year. Cisco bigger economic effects than re- countries impose taxes on divi- els, independent analysts don’t financial decisions like this this year announced plans to repatriations. dends paid to parent companies. Profits expect anywhere near the $4 aren’t made overnight,” she purchase $25 billion in shares The often-cited figures of “It’s not completely friction- trillion Mr. Trump has touted. said. “As a businessman, the over two years. $2.7 trillion or $3 trillion held less,” United Technologies Corp. The Commerce Department president understands that.” “All of our cash basically is abroad by U.S. companies over- CFO Akhil Johri said in an inter- Trickle Back estimates that companies Because repatriation is now repatriated all the time now,” state what could realistically review. Still, the new rules made it brought back $305.6 billion in rarely a costly event, companies Cisco Chief Financial Officer turn. Only about half was in easier to move money globally. the first quarter of 2018. The have been telling investors less Kelly Kramer said in February. cash or other liquid assets, ac- Bringing cash home reduces the ContinuedfromPageOne government figure includes about their plans. cording to Todd Castagno, a company’s need for U.S. borrow- tions—networking-equipment small and closely held firms and Apple stopped disclosing how Morgan Stanley accounting and ing, Mr. Johri said. giant Cisco Systems Inc. and surpassed the total repatriated much cash it holds overseas, tax-policy analyst. United Technologies, the con- drugmaker Gilead Sciences Inc. in all of 2016 and 2017 com- deeming the figure no longer Analysts don’t expect Drug company Eli Lilly & Co. glomerate that makes Otis Ele- Beyond that, companies have bined. material. The $252 billion of for- anything near the moved $9 billion from overseas vators and Pratt & Whitney jet announced plans to repatriate More than $35 billion of that eign cash it reported last year and said it is using the money engines, repatriated $5.1 billion an additional $37 billion. Some government estimate reflects was more than 90% of the total repatriation rates for acquisitions, employee stock this year. The money will help with the largest stockpiles, in- funds routinely repatriated on a on its books. In January, Chief Mr. Trump touted. grants, pension funding and fund its planned $23 billion ac- cluding Apple Inc., have made quarterly basis before the tax Executive Tim Cook said Apple other investments. “We’re quisition of Rockwell Collins general promises to repatriate overhaul. An unknown amount would bring the “vast majority” bringing it back to the U.S. and Inc., a defense contractor and profits without saying when or also reflects new profits earned to the U.S. “over time” as part of putting it to work,” CEO Dave aviation-equipment maker, how much. since December and never sub- its investments in the U.S. A “We’re going to be giving back Ricks said in an interview. United Technologies said. More than a dozen large ject to repatriation taxes, as op- spokesman wouldn’t elaborate. to the shareholders through a Some companies, such as Technical rules for the one- companies, including General posed to stockpiled past profits. Companies use much of the healthy buyback.” Chevron Corp. and Archer Dan- time U.S. tax on stockpiled prof- Electric Co. and Boston Scien- Some may be from companies repatriated money to buy back Kevin Hassett, chairman of iels Midland Co., have long its aren’t final, leaving some tific Corp., have said they don’t that have brought money back shares. A study by Federal Re- Mr. Trump’s Council of Eco- plowed foreign profits into for- companies wary of making big need past foreign earnings in but haven’t publicly disclosed it. serve economists of 15 compa- nomic Advisers, has argued that eign factories, equipment and changes too soon. That tax, pay- the U.S. or have no immediate The Commerce Department nies with the most foreign cash buybacks benefit the economy other assets that aren’t likely to able over eight years, is ex- plans to bring cash home. Far is scheduled to provide new found an uptick in buybacks and by getting money to sharehold- move. Other companies said pected to bring in $339 billion, more are waiting or won’t say. data on second-quarter repatria- little evidence of an investment ers who then reinvest it in com- they need funds overseas for ac- according to a federal estimate. Many provided no informa- tions Sept. 19. surge. panies with domestic opportuni- quisitions, debt retirement and Many companies don’t have tion beyond vague public filings. Lindsay Walters, a White Cisco said it brought $70 bil- ties. expansion in growing markets. urgent domestic cash needs. That includes Microsoft Corp., House spokeswoman, said $3.9 lion of foreign profits to the U.S. Democrats point to buybacks Even without the federal gov- They can borrow cheaply at Alphabet Inc. and other compa- trillion is a “plausible lower this year—about half the total as evidence the tax law is help- ernment taxing new foreign in- home because of low interest nies that held some of the larg- bound” for past corporate prof- repatriations identified by the ing investors more than work- come as it comes home, costs rates or they are focusing on ex- est foreign cash piles before the its offshore and cited the first- Journal, and more than the ers. Economists in both parties remain to moving cash across panding in foreign markets.

Pizza Inc., the U.S.-based domino of the company’s logo, for the free pizza. He said they Deal for owner of the Domino’s Pizza which tattoo artist Mr. Gony- replied that the logo was pretty brand, said the Russian fran- shev said he offered for 2,000 cool and went ahead anyway. chisee had been overwhelmed rubles, or around $30, and took Ayrat Demenkov, 25, said he Free Pizza by the response, receiving about 10 minutes to ink. had already made a down pay- more applicants in days than it Others wanted it worked ment at his favorite parlor had expected in months. into compositions. Mr. Gony- when the promotion was called Backfires U.S. fast-food brands poured shev inked a cuffed hand hold- off, but Domino’s told him he into Russia after the Soviet ing the logo with the phrase could beat the deadline. Union collapsed and quickly “Prisoner of Freebie,” riffing on The courier and chef said he ContinuedfromPageOne gained popularity in a country a classic “Prisoner of Love” tat- is still getting used to the small were often cheap but in short where people had grown used too design. Others put them on domino on the outside of his supply—and the economic to standing in line for basic pizza slices, skateboards or right forearm, where it sits be- hardships of the 1990s have foodstuffs. The McDonald’s pizza boxes carried by a Teen- tween a sketch of a hooded conditioned many Russians to that opened on Moscow’s Push- age Mutant Ninja Turtle. sweatshirt and a screaming de- pounce on a good deal. A stag- kin Square in 1990 attracted On Sept. 3, as the photos mon. He also has robots and nant economy has left average long lines and later became the piled up on social media, the Japanese animation in his ink disposable incomes stuck chain’s most visited outlet company tightened the rules: collection. around $500 a month, and Ms. world-wide. Domino’s first The first 350 people to post “I won’t get tired of it,” he Koshkina said the free pizza opened an outlet in Russia in photos of their tattoos, which said, of his plentiful pizza sup- would help her put aside a bit 1998, and master franchisee DP should be at least 2 centime- ply. “Food is sacred, and I of money from her salary Eurasia NV now has more than ters in size, would receive 100 would do it again if there was a working at a piercing and tat- 100 restaurants, predominantly medium-size pizzas a year. promotion for beer…or too parlor. “Who doesn’t want in Moscow. KONSTANTIN GONYSHEV The next morning, the com- wine…definitely with whiskey.” free food?” she said. Now, brands such as Yum A Russian’s tattoo acquired to win free pizza from Domino’s. pany posted a picture of a large Ms. Koshkina said she Social-media campaigns Brands Inc.’s KFC and Restau- stop sign with a message call- knows exactly what she wants have become a staple of mar- rant Brands International Inc. ever”—on its page on VKon- Russians hurried to tattoo ing an abrupt halt to the pro- on her first pizza: beef, spicy keters looking to generate on- unit Burger King are common takte, the Russian equivalent of parlors. Tattoos in Russia have motion, sparking the last-min- salami, onions and jalapeño line buzz—and, in this case, even on the streets of far-flung Facebook, on Aug. 31. The con- long been associated with ute rush. Domino’s later said peppers. turn people into lifelong walk- Siberian towns. They are facing ditions were minimal: Appli- criminals, who have used them 381 people qualified for free But she’s not so sure the ing advertisements. But the ef- a crowd of competition from cants should post a photo on to depict status in the under- pizza in the four days or so domino quite works with her forts can go awry. McDonald’s, local fast-food companies and social media of a real tattoo in world. But in recent years, they that the promotion was run- other nine tattoos based on for example, pulled a Twitter firms that deliver orders from a visible place with the hashtag have become part of a broad ning. Japanese art or sketches she campaign with the hashtag restaurants placed via apps on #dominosforever. They would assimilation of American hip- At his parlor in Moscow, Mr. made herself. #McDStories in 2012 after con- smartphones. receive a certificate allowing ster culture that includes craft Gonyshev, 29, said he tried to “It does stick out a bit,” she sumers used it to complain Domino’s announced the them to receive 100 free pizzas beer, skateboards and boutique persuade the students not to said. “I’ve already thought of about the company. launch of its tattoo promo- a year of any size for 100 years, barbershops. add the tattoos, because it adding something to it, you A spokesman for Domino’s tion—named “Domino’s For- the company said. Many opted for the simple wasn’t clear they would qualify know, to spice it up a bit.” THE WALL STREET JOURNAL. ** NY Monday, September 17, 2018 | A12A GREATER NEW YORK Insurgents’ Wins Shift Focus in Albany

Progressive groups say cured legislative passage of the Socialists of America, who de- priorities espoused by Mr. Lip- feated state Sen. Martin Ma- candidates they backed ton and the slate of new nomi- lavé Dilan in a primary to rep- will bring change; GOP nees. The governor received al- resent the 18th District in most twice as many votes as Brooklyn, which includes the still controls Senate his challenger, actor Cynthia Bushwick and Williamsburg Nixon, and said the results af- neighborhoods. There is no BY JIMMY VIELKIND firmed his own platform. Republican candidate running “I believe I got more votes in the general election. Public financing of elec- in the primary than any gover- “The Democrat Socialists tions. Stronger rent-control nor in history,” he said. “That are on the march, and if they laws. Single-payer health care. is a revolution. That is a wave. are allowed to implement their The victory of seven insur- On the numbers—not on some radical agenda, New York will gent candidates for the New twittersphere dialogue.” never be the same,” Senate York state Senate in Thurs- He warned that while the Majority Leader John Flana- day’s Democratic primary has insurgent candidates were gan, a Republican from Long progressive groups that popular among his party- Island, wrote Friday in an backed them excited about is- mates in New York City, where email message to supporters. sues that have long languished Ms. Nixon performed well, Queens Sen. Michael Gia- in Albany coming to fruition they could turn off voters in naris, who chairs the Demo- when the Legislature recon- areas of the state where Dem- cratic State Senate Campaign venes next year. ocrats need to oust Republi- Committee, acknowledged that Republicans still control the cans if they are to win control his party’s conference was “di-

state’s upper chamber, and have DREW ANGERER/GETTY IMAGES of the chamber in November. verse,” but said its priorities for years, but Thursday’s wins Gov. Andrew Cuomo said insurgent contenders could turn off voters in areas outside New York City. There are now 31 Republi- were to strengthen abortion ousted six senators who were cans in the 63-seat Senate, but rights under state law, part of the former Independent ries against their challengers. ber, will set its agenda. gressive members.” the GOP has held a majority strengthen gun-control laws as Democratic Conference, which But as the votes were tal- “He’s still on the chessboard Mr. Cuomo talked about the through an alliance with Sen. well as “voting and campaign has backed Republicans since it lied and Reggaeton pulsed at but he no longer controls the election results Friday during Simcha Felder, a Democrat finance reforms.” seceded from the chamber’s the Working Families Party’s pieces,” Bill Lipton, executive di- a news conference ostensibly from Brooklyn. Mr. Felder won “I feel our conference is other Democrats in 2011. election night gathering in a rector of the Working Families called to discuss the deploy- a Democratic primary chal- more in step with the people of The results were the lone hookah bar in Brooklyn’s East Party, said of Mr. Cuomo. “In- ment of New York assistance lenge this week. the state than theirs,” Mr. Gia- cut to Gov. Andrew Cuomo in Flatbush neighborhood, the stead of a divided Legislature to states affected by Tropical Republicans immediately naris said, referring to the the elections. Mr. Cuomo and argument raged over the di- where you can set the agenda, Storm Florence. seized on the Democratic pri- state GOP. “And let’s not forget: his endorsed candidates for rection of the Democratic there’s going to be a Democratic Despite some statements of mary as a warning to voters. they are the party of Donald lieutenant governor and attor- Party and who, if it wins con- Senate and Assembly and look support during his first two They pointed to Julia Salazar, Trump, the most unpopular ney general won decisive victo- trol of the Senate in Novem- who’s in the Senate—seven pro- terms, Mr. Cuomo hasn’t se- a member of the Democratic president in modern times.” Lawsuit Fallout Could Affect Ballet’s Fundraising

BY CHARLES PASSY notice of his resignation” be- The nonprofit ballet has a cause of those communications, current annual budget of $88.8 As it prepares to launch its which it learned about earlier in million, according to company season Tuesday night, New York the summer. spokesman Rob Daniels. But the City Ballet is faced with a singu- The company said the move ballet relies heavily on contrib- lar financial challenge in light of to ultimately terminate Messrs. uted income to meet that bud- a headline-grabbing lawsuit. Catazaro and Ramasar came get, with $26 million coming Namely, how to raise the “after further assessment of from various fundraising chan- millions of dollars the 70-year- their conduct and the impact nels, from government sources old institution needs when its on the NYCB community.” to private gifts, according to a treatment of its female dancers Messrs. Catazaro and Ra- current job posting it has for a has come under scrutiny. masar issued statements on so- chief development officer. Alexandra Waterbury, a for- cial media over the weekend, Complicating the fundraising mer student with the City Bal- saying they didn’t deserve to be picture for the 90-member ballet-affiliated School of Ameri- terminated. Mr. Catazaro let is the fact it has been with- can Ballet, filed a lawsuit stressed that he wasn’t named out a permanent artistic head against the company and Chase as a defendant in Ms. Water- since the retirement of long- Finlay, one of its former princi- bury’s lawsuit, while Mr. Ra- time ballet master-in-chief Pe- pal dancers, earlier this month masar said, “In the days ahead, ter Martins at the beginning of in New York State Supreme I will be telling my side.” this year. Mr. Martins left the Court in Manhattan. The suit A representative for Mr. company after accusations of

alleged the ballet allowed a Catazaro said the dancer had no sexual harassment and physical PATRICK MCMULLAN/GETTY IMAGES (2) “fraternity-like atmosphere” to comment at this point beyond mistreatment against him sur- Alexandra Waterbury, above, filed a suit against the ballet and her ex-boyfriend, Chase Finlay, left, flourish in which the “basic that statement. Mr. Ramasar faced. He denied any miscon- who resigned from the company. Zachary Catazaro, right, and Amar Ramasar, below left, were fired. rights” of women were violated. couldn’t be reached Sunday. duct and a later investigation Ms. Waterbury accused Mr. Ira Kleiman, an attorney for by the company and the affili- Finlay, her former boyfriend, of Mr. Finlay, had no comment ated School of American Ballet taking sexually explicit photos Sunday. Right after Ms. Water- cleared him of any wrongdoing. and videos of her without her bury filed her lawsuit, he told Michael Kaiser, chairman of consent. She alleged those im- the New York Post, “The com- the DeVos Institute of Arts ages were shared with male plaint is nothing more than a Management at the University company members, who some- mass of allegations that ought of Maryland, said that when a times sent similar images of not to be treated as facts.” cultural institution faces a cri- other female dancers in return. Mr. Finlay couldn’t be sis, it is up to its leadership to The company has said it “is reached for comment Sunday. “make the case for its contin- confident that there is no basis Fundraising consultants and ued importance” to donors. for this lawsuit” and denied it dance professionals say the deci- But with no successor yet ever “condoned, encouraged, or sion to fire Messrs. Catazaro and named for Mr. Martins, “it’s fostered” the alleged conduct. Ramasar sends the signal that harder to make the case.” On Saturday, New York City the company is taking the alle- At the same time, others say Ballet announced it had fired gations very seriously. But they the ballet is well-positioned in two male principal dancers, also say the situation could stop many respects to weather the Zachary Catazaro and Amar Ra- some donors from contributing. current storm by virtue of its masar, following its earlier de- “It will definitely have an pre-eminent standing in the cision in late August, before Ms. impact on fundraising,” said dance world. Waterbury’s lawsuit was filed, Juan José Escalante, executive If anything, the company to suspend the pair. The ballet director of the New York-based looks stronger from a technique

said that Messrs. Catazaro and José Limón Dance Foundation standpoint than ever, says Ed- HIROYUKI ITO/GETTY IMAGES Ramasar engaged in “inappro- and a former financial adminis- ward Villella, one of its former priate communications” with trator at New York City Ballet. stars who recently returned to tural institutions in the city, the raised $65 million of a $70 mil- been very grateful for the mes- Mr. Finlay, who resigned from Mr. Escalante added that while help coach dancers in the open- ballet has a solid financial track lion capital campaign goal. sages of support that the com- the company in August. it is difficult to put an estimate ing-week program, featuring record of late. It has balanced The company expressed pany has been receiving from The company said Saturday on the decline, he said, “I think George Balanchine’s “Jewels.” its budget in the last six sea- confidence that it won’t be af- members of the NYCB commu- it had “made the decision to ter- it is reasonable to assume any- On top of that, unlike some sons and is sitting on a $225 fected financially by the news nity including donors and minate Finlay prior to receiving where betweena5to10%hit.” other prominent nonprofit cul- million endowment. It has also of recent weeks. “We have ticket buyers,” said Mr. Daniels. A Bad Day for Gang Green Millionaire Ranks Fell in 2016 BY JOSEPH DE AVILA $10.7 billion of revenue in the money between two years.” fiscal year that ended in June Jared Walczak, senior pol- Fewer Connecticut house- 2018 compared with $9 billion icy analyst at the right-leaning holds reported income of $1 mil- in the year-earlier period. Tax Foundation, said, “It’s lion or more in 2016, according plausible that political circum- to newly released data from the stances led to a deferral of in- Internal Revenue Service. come” in 2016, leading to a de- The number of tax filers State income tax has cline in the number of with an adjusted gross income become a hot-button households reporting income of $1 million or more fell to of $1 million or more. But Mr. 10,990 in 2016, a 4% decline issue in Connecticut’s Walczak said some rich Con- from the previous year, ac- gubernatorial race. necticut residents may have cording to the IRS. The cumu- reached a tipping point and lative adjusted gross income concluded it is no longer rea- this group reported also sonable to live there because shrank to $36.11 billion over Some state fiscal policy ex- of the income taxes. this time period, a 13% drop. perts, however, said the drop The 10,990 Connecticut The new data come as the in 2016 may be explained by households that reported $1 state’s competitive gubernato- changes in federal tax laws. million or more in income in rial race has centered on state Connecticut’s richest residents 2016 is still higher than it was income taxes. Republican Bob may have deferred income in in 2010, when the figure was Stefanowski has campaigned on anticipation of tax changes un- 9,030, according to the IRS. phasing out the state’s income der the Trump administration, The U.S. as a whole saw a tax, while Ned Lamont, the said Kim Rueben, a senior fel- dip in households that earned Democratic candidate, has said low with the Tax Policy Center. $1 million or more in 2016. that the plan to eliminate state “I feel like I wouldn’t look at There were 424,870 tax filers income taxes is unrealistic. changes between 2015 and who reported adjusted gross Republicans and conserva- 2016 and say that’s evidence income of $1 million or more tive analysts have argued that that people are responding to in 2016, a 3% decrease from Connecticut’s income-tax in- Connecticut’s taxes,” Ms. Rue- the previous year. In Florida, creases in 2011 and 2015 ben said. “I would probably say where there is no state income

MICHAEL OWENS/GETTY IMAGES prompted many of its wealthi- that people in Connecticut who tax, the number dwindled to BRIGHT SPOT: The New York Jets’ Bilal Powell made a catch and scored a third-quarter touchdown est residents to flee the state. earn a million or more are even 28,420 during that same time against Miami’s Raekwon McMillan at MetLife Stadium on Sunday. The Dolphins still won, 20-12. The state income tax produced more likely to have shifted frame, a 14% drop. THE WALL STREET JOURNAL. Monday, September 17, 2018 | A13 LIFE&ARTS

CULTURE Art Scenes Off the Beaten Track

Beyond New York, America’s smaller cities like Santa Fe and Palm Springs sustain their own cultural ‘microclimates’

BY KELLY CROW

AS THE FALL SEASON gets under way, attention tends to focus on major cities like New York and London because of their block- buster museum exhibits and trophy-art auctions. The vagaries of the art market hold greater sway there, with galleries opening and closing with every tilt in collector confidence. Yet beyond these global hubs, there exist smaller, self-sustaining art scenes that appear to thrive in good markets and bad. Santa Fe, N.M., is one such “microclimate.” Aspen, Colo., is another. Some hot spots, like Palm Springs, Calif., benefit from vacation-worthy vistas or cheery climates, but other settings may come as a surprise. Arts researcher Zannie Giraud Voss, who directs the DataArts team at Southern Methodist University, said its latest index of culturally vibrant cities includes places like Traverse City, Mich., population 15,532. Traverse City sits a few miles away from the Interlochen Center for the Arts, and it boasts a film festival, symphony orchestra and a museum with one of the world’s top collections of Inuit art. Rapid City, S.D., also made the Arts Vibrancy Index in part because it is close to Mount Rushmore. “People are searching for the authentic,” Ms. Voss said. “They want to feel like they’ve gone somewhere specific.” Khristaan Villela, director of Santa Fe’s Museum of International Folk Art, said the city’s artists and collectors no longer feel compelled to travel to either coast to feel like CLOCKWISE FROM TOP: TONY PRIKRYL; BRIAN RICE; DAVID A LEE; UCCS GALLERIES OF CONTEMPORARY ART; COLIN QUASHIE they’ve participated in a lively art season—a Aspen, Colo. contemporary-art shows into a former power More than 50 of his works are on view through departure from perceptions a generation ago, plant, the Aspen Art Museum tripled its footprint Sept. 29 at the Southern Utah Museum of Art. Known For: This former silver-mining boom- he said. The homegrown focus buffers some when it opened in a new home designed by Pritz- Insider Tip: Collector Eleanore De Sole sent her galleries from the swings of the broader art town is now a playground for the world’s top ker Architecture Prize winner Shigeru Ban. Direc- collectors, so the trading-post shops are summer visitors to ride a gondola in nearby markets, but it also allows regional styles and tor Heidi Zuckerman has works up by artists like Snowmass up to the Elk Camp restaurant to see quirks to blossom. steadily making way for galleries like Baldwin, Yto Barrada and Larry Bell. Marianne Boesky and Casterline Goodman. Sarah Cain’s installation, “Mountain Song,” through “We don’t really even need the bigger art Local Hero: Soaring real-estate prices keep most Sept. 30. Ms. De Sole also recommends “the world,” Mr. Villela added. “Here in Santa Fe, Young upstart Skye Gallery just offered a plant-foraging hike with one of its artists. working artists from settling here, but Texas-born world’s best collection of Jasper Johns’s works on we create our own weather.” James Surls has a studio in nearby Carbondale. paper” at the Powers Art Center in Carbondale. Here is a look at five cities that have culti- Must-See: After three decades of squeezing vated their own artistic identities. Kansas City, Mo. Known For: This city is beloved for its jazz and barbecue, but Thomas Hart Benton and Robert Morris lived here, and the Kansas City Art Institute’s ceramics program has spurred collectors to pay as much for pottery as they might a painting. Long- time dealer Sherry Leedy said she no longer shows at far-flung fairs because her existing supporters can sustain her artists’ careers. Must-See: Kansas City has a population of almost 500,000, coincidentally around the number of annual visitors to the Nelson-Atkins Museum of Art. The museum is prized for its Caravaggio, “Saint John the Baptist in the Wilderness,” as well as its edgy contemporary shows. Up now: Exhibits on Missouri natives Wendell Castle and Wilbur Niewald. Local Hero: Kansas City-born artist Andrzej Zieliński explores the ways machinery can make people anxious by re-creating copiers, paper shredders and other gadgets using warped sheets of translucent plastic. His “Indoor Habitat” show is up through Oct. 2 at Emporia State University. Insider Tip: Kansas City launched a biennial, “Open Spaces,” with 46 artists—half from the region. Collector Bill Gautreaux recommends Ebony Patterson’s “…called up,” an abandoned pool that the artist cleaned up and festooned with flowers, and Kansas City Art Institute alum Nick Cave’s “Hy-Dyve” installation in a former Catholic church.

Santa Fe, N.M. Charleston, S.C. Known For: Indigenous and Hispanic artists settled here long before Georgia O’Keeffe, and today Known For: This port city has long weathered its share of tempests it brims with at least 100 galleries, eight muse- and roiling history, from its antebellum days with painters like ums and seasonal market events. Thomas Sully and James Audubon to a 1930s “Porgy and Bess”-style Must-See: After two decades overseeing a bien- revival of Lowcountry romanticism. Yet edgy undercurrents persist in nial and an art space, SITE Santa Fe opened a the work of graffiti artist Shepard Fairey and conceptual artist renovated and expanded venue in the trendy Rail- Charles Gaines, both born here. yards district. Its latest “SITElines” biennial is up Must-See: The Halsey Institute of Contemporary Art is a noncollect- through Jan. 6, showing works like Hock E Aye Vi ing powerhouse anchored at the College of Charleston and known for Edgar Heap of Birds’ eerie wordplay prints, “Sur- championing nontraditional artists like Washington, D.C.’s Renee viving Active Shooter Custer.” Another hit in town: Stout. It is currently exhibiting Italian painter Hitnes, who retraced Artist collective Meow Wolf’s trippy funhouse in- Audubon’s steps in the U.S. and painted watercolor views of birds he stallation, “House of Eternal Return.” spotted along the way. Local Hero: Cannupa Hanska Luger was born on Local Hero: The Southern has done much to rally broader support for North Dakota’s Standing Rock reservation, but he the incendiary work of Charleston-based Colin Quashie, who painted lives in Santa Fe and makes pieces like “Every retired Gen. Colin Powell’s face onto boxes of Uncle Ben’s rice and re- One,” made from clay beads representing missing designed toile wallpaper to reflect the brutal realities of slavery. An- or murdered indigenous women. Strung together, other rising star: Fletcher Williams III, whose work uses palmetto the beads reveal a portrait of one Native woman. roses to explore black entrepreneurship and ingenuity, he said. Insider Tip: Former Sotheby’s chairman John Mar- Insider Tip: Mark Sloan, the Halsey’s director and chief curator, rec- ion and his wife, Anne, bought a home in Santa ommends stopping by the emerging-art exhibitions and artist studios Fe in the 1980s, helped found the Georgia at the Redux Contemporary Art Center. “The technology executives O’Keeffe Museum in 1997 and recommend stroll- moving into Charleston now are adventurous, and they’re more into ing the galleries along Canyon Road. Hungry? emerging art than marsh scenes,” Mr. Sloan said. Eclectic American restaurant Geronimo “puts Tex- Mex to shame,” Mr. Marion said.

Palm Springs, Calif.

Known For: Hollywood stars like Bob Hope began wintering in this desert town in the shadow of Mount San Jacinto in the 1930s. He was followed by Frank Sinatra and another Rat Pack wave after World War II, transforming Palm Springs into a “mecca for midcentury modernity,” said Charles Phoenix, author of “Addicted to Americana: Celebrating Classic & Kitschy American Life & Style.” Must-See: More than 125,000 people descend in “Mad Men” attire and 1950s Cadillacs every February for Modernism Week, a bonanza of vintage furniture fairs and double-decker bus tours of the time-warp neighborhoods designed by architects like Albert Frey. (There’s also a smaller preview version Oct. 18-21.) Local Hero: Architect Hugh Kaptur was a young apprentice during Palm Springs’ midcentury heyday, but he stuck around, designed homes for actors Steve McQueen and William Holden and at age 87 is still renovating his buildings and designing new ones today. Insider Tip: Mr. Phoenix and Lisa Vossler Smith, Modernism Week’s executive director, said visitors should get outfitted in country-club attire at Trina Turk’s boutique before loading up on Peninsula Pastries (“It helps offset the cocktails,” Mr. Phoenix said). Brush up on midcentury everything at the Palm Springs Art Museum Architecture and Design Center—or step into a primer by visiting Walter Annenberg’s 200-acre winter estate, known as Sunny- lands, in nearby Rancho Mirage. A14 | Monday, September 17, 2018 THE WALL STREET JOURNAL. LIFE & ARTS

FASHION

Supersized at An ’80s Tribute? Marc Jacobs No, Spring Fashion

Oversize silhouettes, neon colors and animal prints stand out on New York’s runways; polished looks hint that streetwear’s moment has passed

BY RAY A. SMITH neon, shades ranged from pastels to candy hues and saturated tones Leopard spots at labels including Prabal Gurung, at Christian THINK BIG—very big. Think Pyer Moss, and Michael Kors. Sies Siriano pink—hot pink. Stop wearing Marjan, a label known for its streetwear. Upgrade your denim. color sense, even played R.E.M.’s Wear animal prints in the daytime “Shiny Happy People” during its like it’s no big deal. show, where models wore a mix of Those are themes for clothes primary colors alongside earth and that will start arriving in stores in jewel tones. Brandon Maxwell, a about six months—or sooner, at designer who in the past made fast-fashion retailers. Designers mostly black dresses, embraced drove home the message in color at his show with hot pink, dozens of shows and pre- neon green, golden yellow and sentations during New candy red. The colors sig- York Fashion Week, naled optimism and defi- which ended Wednes- ance amid the city’s over- day. What’s new? cast skies. They also sounded Roomy, oversize silhou- Denim at a promising note ettes along with a palette Zero + Maria about New York of vivid colors and Cornejo Fashion Week it- neon. Also, tailored self, which is denim dresses and grappling with jumpsuits for work questions about its rele- and animal prints vance. In challenging to flaunt before times, designers and re- dark. Finally, the tailers bank on colors winds of fashion and prints to lift spir- may be shifting its. from streetwear CIAO, toward polished STREETWEAR With a but not staid few exceptions, de- looks. signers showing in Some of these New York resisted fresh-off-the-run- pandering to way concoctions for millennials. Spring 2019 might Instead of Streetwear’s be spotted on celeb- slapping logos successor rities along the red on clothes and at Tom Ford carpet before the 70th pairing everything Primetime Emmy with thick-soled Awards ceremony to- sneakers, Gabriela night. Hearst, Oscar de la Twiceayear,New Renta and other houses York Fashion Week kicks doubled down on off a month of activity grownup-but-not-old that moves on to London, styles. Even their casual then Milan and finally ensembles tended to look Paris. London Fashion polished. Many designers Week began Sept. 14. and retailers in New York Themes that emerge in New have streetwear fatigue York can cross the Atlantic and are eager to bid fare- but designers elsewhere also well to the trend. Tom may have more experimental Ford said as much in notes riffs on trends or start com- for his show: “I feel that pletely new ones. Here’s a tipsheet fashion has somehow lost from New York Fashion Week: its way a bit and it is easy for all of us to be swept up SUPERSIZED Continuing a in trends that have lost trend that arose in Fall 2018 col- touch with what women and lections from labels including men want to actually wear. Balenciaga, Calvin Klein and Marc So I did not want to make Jacobs, more designers showed clothes that were ironic, or roomier or downright oversize sil- clever but simply clothes houettes for spring 2019. They that were beautiful.” Few ranged from voluminous prairie designers are an island so dresses and baggy sweaters at Mr. Ford’s peers in London, Coach to roomy pants and gigantic Milan and Paris may feel the tote bags at Proenza Schouler. De- same. signers declared an end to the era Bright colors at of body-hugging, va-va-voom ELEGANT DENIM Design man resources before Brandon Maxwell styles favored by Kim Kardashian houses including Coach, Proenza wearing these pieces to West and others over, at least for Schouler and Zero + Maria Cornejo work: Some firms still now. Marc Jacobs underscored the gave denim elegant new couture- see denim as a no-no, Animal trend with his show at the close of level twists, turning the humble no matter how “ele- prints at

New York Fashion Week. So, next fabric into skirts, dresses, jump- vated.” Calvin Klein CLOCKWISE FROM TOP RIGHT: DAN & CORINA LECCA; GETTY IMAGES (2); TOM FORD; DON ASHBY; DAN & CORINA LECCA spring, go big—or go home and suits, and overcoats. Michael Kors change your outfit. showed a denim jacket with ANIMAL PRINTS shirts and jeans or sneakers. Call it a de- flower-gem buttons. While jeans Many designers have fanging of what once seemed a daring SHINY HAPPY COLORS have been a fixture of the runway, pledged to stop using style choice reserved solely for after While spring collections tend to be the elevation of denim into more fur but have fallen in love with an- sometimes proposed pair- dark. Designers on New York Fashion vibrant, what’s notable this time is formal looks furthers the blurring imal prints. Calvin Klein ing animal prints during Week’s runways neutered leopard spots colors that are vivid, bright and, between casual and dressy afoot in 205W39NYC, Christian Siriano and the daytime with every- and tiger stripes so they became NBD, no well, ’80s-looking. In addition to fashion. That said, check with hu- Baja East were among labels who thing from tank tops to T- big deal.

WORK & FAMILY MAILBOX | By Sue Shellenbarger THE WAY TO REACT TO NEGATIVE FEEDBACK

I enjoyed your Sept. 11 formance appraisals. in several studies to better grades, column on people who It’s important to give your man- test scores and social skills in chil- Q thrive on negative feed- ager a complete picture, filling him dren. back. What do you rec- or her in on missing details that Other studies say parent volun- ommend if part of the explain why you acted as you did. teers know more about what their performance that’s being criticized That will help the boss give more children are learning in school and needs an explanation? constructive feedback in the fu- how well they’re doing, enabling For example, perhaps another ture, he says. Effective perfor- them to do a better job of helping senior manager told you to perform mance reviews require trust and their children build academic skills a task in a way that’s drawing criti- openness on the part of both par- at home. Also, several studies have cism from your boss? Do you speak ticipants, Mr. Hirsch says. Trans- linked parents’ involvement in up or just say thanks?—D.E. parency is essential and shows school at one point with higher both of you have each other’s best achievement in later years, suggest- A: Try to focus first on what interests at heart. ing the gains aren’t due to favorit- your boss is saying and think about ism by individual teachers, accord- its value, rather than switching ing to a 2012 review of 150 studies. tracks immediately to defending Regarding helicopter parents, yourself. In your Aug. 1 column volunteering doesn’t seem to be And saying thanks is always im- about the benefits of linked with any particular parent- portant. It’s hard for most people Q parents’ volunteering at ing style, but parenting styles do to give negative feedback. their children’s schools, help predict how much beneficial

Clearing up apparent misunder- I wonder whether better CAROLE HÉNAFF impact parental involvement will standings is important, too. “Feed- grades for kids whose parents vol- have on students, the research re- back is often filtered through a unteer are the result of a favoritism their students’ ability to develop these children more attention and view shows. Volunteer parents who murky lens. Time lapses, incom- bias among teachers, and not nec- agency for themselves.—W.D. assign them to higher ability are warm and nurturing and sup- plete data, cognitive biases and essarily better performance. groups. That, in turn, improves port children’s independence tend other factors can compromise its And I wonder whether volun- A: Some researchers studying their skills and their grades. Also, to have children who perform bet- integrity,” says Joe Hirsch, a teers tend to be helicopter parents favoritism have argued that teach- the high-quality parent-teacher re- ter than children of parents who speaker and author of “The Feed- intent on micromanaging both the ers who see children’s parents as lationships that parent volunteers are too controlling and undermine back Fix,” a book on improving per- kids and the environment, limiting involved in their learning give sometimes enjoy have been linked children’s autonomy. THE WALL STREET JOURNAL. Monday, September 17, 2018 | A15 LIFE & ARTS

ART REVIEW Binary Reactions to the Digital World

categories and strike at the BY BRIAN P. KELLY heart of what makes the web good and bad. Chicago Heavily in the pro column WITH EVERY step forward is Oliver Laric. His “Sleeping in human ingenuity, there Boy” (2016) is a reproduction have been technophobes of John Gibson’s 1834 sculp- warning that we’ve set the ture “Sleeping Shepherd stage for our own demise Boy.” Channeling pre-modern and bright-eyed early adopt- art history, where plaster ers rushing to evangelize the copies of masterworks made newest fads. Guglielmo Mar- it possible for viewers coni, inventor of the radio, around the globe to glimpse felt the pull of both these the hand of Michelangelo or poles. Worried about his cre- Bernini, Mr. Laric updates ation and its uses, he once the practice. Using a digital wondered, “Have I done the scan of Gibson’s original, he’s world good, or have I added re-created it with a variety of a menace?” materials and a 3-D printer. Unsurprisingly, the inter- At once classical and strik- net has not been exempt ingly contemporary, the from this duality. Partisans sculpture holds promise for have praised it as an egalitar- the future of digital preserva- ian tool with limitless poten- tion and the ability to make tial, while others have de- reproductions inexpensively cried it as a vanity machine available to institutions of all that spits out echo chambers sizes. One can see Mr. Laric’s and severs real human con- piece as a counterpoint to nection. Now the Museum of works like Daniel Arsham’s Contemporary Art Chicago “Future Relic” sculptures has organized an exhibition (not included in the show), in that surveys artists’ reac- which cameras, Walkmans tions to the web and the way and other gadgets are por- it shapes our experience of trayed as crumbling artifacts. the world. The former enthusiastically “I Was Raised on the In- revives the past for the pres- ternet” (through Oct. 14), cu- ent; the latter sees our tech- A still from Rachel Maclean’s ‘It’s What’s Inside That Counts’ rated by Omar Kholeif, in- nological breakthroughs in an (2016), above; Amalia Ulman’s ‘Excellences & Perfections cludes nearly 100 works by Ozymandian light. (Instagram Update, 5th September 2014)’ (2014), right; Douglas over 60 individuals, ranging Rafael Lozano-Hemmer is Coupland’s ‘Delaware’ (2016), below center; Trevor Paglen’s from more traditional media, far more suspicious of new ‘Autonomy Cube’ (2014), bottom like photography, painting, technology. His “Please sculpture, film and video, to Empty Your Pockets” (2010) ings of any sort”—and whose rounded by mystical beings emerging forms like interac- is a TSA-style conveyor belt echoes of slavery are un- in a desert. While not as tive computer works and vir- on which visitors are invited avoidable. shocking as Jordan Wolfson’s tual reality. The size and to place their own objects. “I Was Raised on the In- hyper-violent exhibit at the scope of the show offer visi- After they pass through a ternet” can at times feel scat- 2017 Whitney Biennial (in tors the chance to see house- black box, they come out the tershot, but the duality of its which the artist bludgeons a hold names in the contempo- other side and images of subject is the one man to death), it is nonethe- rary-art world working in them are projected onto the throughline that holds the less one of the most engross- both familiar and unfamiliar belt, along with those of show together. Where Juliana ing VR experiences I’ve had formats (Douglas Coupland’s many other items that previ- Huxtable has found the web a in a gallery setting. The jour- acrylic paintings; Trevor Pa- ous museumgoers had useful—if not always ney is disorienting, some- glen’s encrypted computer- scanned and the machine has friendly—tool for expressing times scary, but filled with in-a-cube), while introducing recorded. Mr. Lozano-Hem- gender identity, Amalia Ul- the excitement of feeling like them to lots of new artists mer’s piece serves as a sim- man was confronted with we’re truly exploring these doing the same. ple but potent reminder that lust and violence when she imaginary places—not unlike Taking on a underwent a the internet itself. subject as free- months-long vir- —Mr. Kelly is the Journal’s wheeling as the tual “makeover” associate Arts in Review internet, MCA via her social editor. Follow him on Twitter

faced the chal- media. In her @bpkelly89. FROM TOP: RACHEL MACLEAN; AMALIA ULMAN/ARCADIA MISSA; DOUGLAS COUPLAND/DANIEL FARIA GALLERY, TORONTO; TREVOR PAGLEN/METRO PICTURES, NY lenge of how to video “Premium organize the Connect” show, and the (2016)—part museum has digital land- broken it into scape, part hal- five sections lucination, part dealing with history lesson, identity; trans- part anthropo- lating digital logical inter- space into the view—Tabita real world; sur- Rezaire pro- veillance, data poses an inter- collection, and net that moves control; immer- beyond bias. In sive and interac- contrast, Rachel tive experiences; Maclean’s film and corporate “It’s What’s In- culture and con- side That OurItalian18ktgold sumerism. Many Counts” (2016) of the objects in imagines a post- alligator bangle the show could apocalyptic have been dis- world with an Setyourselfapartwiththis played in multiple sections, we give up a piece of our- underclass addicted to data and the categories occasion- selves in the name of secu- and with hierarchies deter- eye-catching alligator bracelet in ally feel arbitrary, as do some rity. mined by social media pres- of the items included. Cory Not everything here car- ence and controlled by large luxurious 18kt gold. This Italian-crafted Arcangel’s oversize ink-jet- ries a weighty message. A corporations. MCA’s show is on-canvas image of Adidas film pieced together from in- quick to point out that for bangle showcases exceptional stripes, for example, seems ternet videos of cats playing every person who finds the detailing in attention-grabbing shine. to scream “Commercialism!” the piano re-creates a Schoe- internet liberating, another and not much else. All but nberg composition, and a finds it oppressive; for every one of the works were made mechanized sculpture of an friend we find online, there’s after the turn of the millen- emoticon rotates, turning a troll waiting to hurt us. nium, and while the focus on happiness ;) into sadness ;(. The centerpiece of the ex- the new is understandable, While undeniably influenced hibition captures this double- including earlier examples by the internet, these objects edged nature of technology from pioneers in the realm feel out of place in an exhibi- well. Jon Rafman’s “Transdi- like Roy Ascott would have tion that includes work like mensional Serpent” (2016) provided some helpful con- Mendi + Keith Obadike’s lives up to its name. Viewers text. “Blackness for Sale” (2001), slip on VR headsets and take Even so, there’s plenty an unnerving eBay posting in seats on a large fiberglass worth digging into here, and which the author’s race was snake. Over the four-minute the most interesting works put on the auction block— experience, we’re whisked are the ones that espouse the complete with warnings such through worlds both fantas- strongest belief in or worries as “The Seller does not rec- tic and familiar: soaring about modern tech—the ones ommend that this Blackness through treetops, huddled in that transcend the curatorial be used during legal proceed- a foreboding alleyway, sur-

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FOOTBALL The NFL’s Newest Gunslinger

The Chiefs’ risky decision at quarterback is proving brilliant. That’s because Patrick Mahomes is emerging as the league’s breakout star.

BY ANDREW BEATON arm strength was obvious and so was his production. During his ju- nior season at Texas Tech, he com- The Chiefs began this season pleted 65.7% of his passes for with the distinct possibility that 5,052 yards and 41 touchdowns. He they would look like complete ran for 12 more touchdowns, too. dunces. During the past off-season If those numbers seem com- they traded away Alex Smith, who pletely absurd, that’s because had one of the best seasons in the they’re completely absurd. And league last year, and turned over there was a natural question: Was the quarterback reins to Patrick his production the result of his tal- Mahomes. ent or a Texas Tech offensive sys- The problem with that nobody tem that regularly produces out- knew if Mahomes would be better size passing numbers? In spite of than Smith or even good at all. his production that year, Texas Mahomes could flop. And if Ma- Tech went just 5-7. homes flopped, the Chiefs’ deci- Then the decision to put the sion to trade away their quarter- Chiefs’ fate in his hands was made back who was definitely good in even weightier by Smith’s produc- order to go with a quarterback tion last season. Smith had a ca- who might be good would be quite reer year, leading the NFL in the head scratcher. passer rating despite some second- Two weeks into this season, it’s half struggles. no longer reasonable to question if Instead of Smith, though, they Mahomes is good, and it’s far decided to go with a player who more reasonable to ponder if Ma- could realistically fizzle for a rea- homes is great. That much was son that has nothing to do with clear after his second consecutive Mahomes specifically and every-

monster game. He threw for six JOE SARGENT/GETTY IMAGES thing to do with the position he touchdowns in a 42-37 win against Chiefs quarterback Patrick Mahomes threw six touchdown passes in a 42-37 victory over the Steelers on Sunday. plays. Quarterbacks taken high in the Steelers—giving him 10 the draft fizzle regularly. through the season’s first two Mahomes has dazzled with continued this week against Pitts- there were also reasons to be Any questions that this would weeks. heaves uncommon in the modern burgh. Four of his six touchdown plenty skeptical. The Chiefs have happen dissipated after the first Mahomes, 22 years old, is now NFL, which has increasingly passes went for 15 yards or longer, clearly believed in Mahomes for a game. Then after this second one, the youngest player in the Super shifted toward favoring high-prob- capped off by a 29-yard laser to while.Theytradeduptotakehim something else happened. After Bowl era with a six-touchdown ability short passes over riskier Hill. In between those scores, he with the No. 10 overall pick in the playing against two veteran quar- passing game. His 10 throwing and longer ones. Mahomes has completed passes to Sammy Wat- 2017 draft, even though Smith was terbacks, Philip Rivers and Ben Ro- scores are a record for the first taken that trend and blasted it to kins for 40 yards, Hill for 36 yards entrenched as the team’s starter. ethlisberger, who have been two weeks of the season. But his smithereens with the bazooka at- and Travis Kelce for 31. Altogether, Mahomes spent most of the sea- among the best in the game since eye-popping statistics, somehow, tached to the right side of his in two weeks, he has put together son on the bench, though he Mahomes was in elementary aren’t even the most jarring aspect torso. the type of highlight reel some started one game, a Chiefs win, school, it became clear that the of what he has done so far. That’s His first career touchdown pass, teams can’t splice together over where he threw for 284 yards, one player on the other side of the because somehow what he has against the Chargers, went for 58 the course of an entire season. interception—and no touchdowns. field is taking up that mantle done is less notable than how he yards to Tyreek Hill. Another, later There were reasons to believe As a prospect, Mahomes was al- faster than anybody could have ex- has done it. in that game, went for 36. That this was entirely possible but luring. He was also polarizing. His pected.

BOXING CANELO PACKS A BIG PUNCH

BY JIM CHAIRUSMI wouldn’t “run” and instead stand exciting. I thought I fought better and fight. than he did,” Golovkin said. That’s exactly what Alvarez According to CompuBox, Las Vegas (50-1-2, 34 KOs) did as he showed Golovkin landed 234 of 879 Saul “Canelo” Alvarez is the his versatility in adjusting his punches (27%), while Alvarez new king of the middleweight divi- game plan. landed 202 of 622 punches (32%). sion after edging Gennady “GGG” “I showed my victory with facts. Golovkin held the advantage in Golovkin by majority decision on He was the one who was backing jabs (118 to 59), while Alvarez hit Saturday night. up. I feel satisfied because I gave a on more power punches (143 to Alvarez showed a new dimen- great fight. It was a clear victory,” 116). sion by standing toe-to-toe with Alvarez said. Throughout the fight, Golovkin Golovkin, who is one of the best Judges Dave Moretti and Steve was effective with his jab, but Al- attacking fighters in the sport. Weisfeld scored the fight 115-113 varez managed to absorb the The 28-year-old Alvarez, a for Alvarez, while Glenn Feldman blows and score with power shots,

skilled counterpuncher, appeared had it 114-114. particularly uppercuts and right ETHAN MILLER/GETTY IMAGES to surprise his 36-year-old oppo- Golovkin (38-1-1, 34 KOs), who hands to the body. Saul ‘Canelo’ Alvarez, right, edged Gennady ‘GGG’ Golovkin by majority nent by applying constant pres- suffered a cut above his right eye The fight’s promoters, Oscar De decision on Saturday night at the T-Mobile Arena in Las Vegas. sure, a different tactic from their that required eight stitches, said he La Hoya’s Golden Boy and GGG bout in Sept. 2017. thought he outperformed Alvarez. Promotions, had always hoped “That was a great fight, but in After suffering the first loss of In the first meeting, most ring- “I’m not going to say who won Canelo-GGG would become a fran- the end, it was a victory for Mex- his professional career, Golovkin side observers felt Golovkin won [Saturday], because the victory be- chise event for boxing. Now after ico,” Alvarez said. “If the people also seemed agreeable to complet- but the judges ruled a split draw. longs to Canelo, according to the 24 rounds and two close decisions, want another round, I’ll do it ing a trilogy. Prior to Saturday’s rematch, judges. I thought it was a very it appears there is a growing call again. But for right now, I will en- “Under the right conditions, Golovkin said he hoped Alvarez good fight for the fans and very for a third fight. joy time with my family.” yes.” Weather TheWSJDailyCrossword| Edited by Mike Shenk Shown are today’s noon positions of weather systems and precipitation. 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wsj_20180917_a016_p2jw260000_0_a01600_1______xa2018.crop.pdf 1 17-Sep-18 06:05:25 THE WALL STREET JOURNAL. Monday, September 17, 2018 | A17 OPINION

The Truth About Hurricane Maria BOOKSHELF |BY Julia Flynn Siler How many in comments from a few Re- Mr. Morales wrote. “The Na- ample, may have been one Golden State Puerto Ricans publicans, who, ever vigilant tional Weather Service and cause of numerous post-storm died from about the Puerto Rican vote National Hurricane Center deaths. But as Mary Williams Hurricane Ma- along Florida’s I-4 corridor, count only direct deaths— Walsh detailed in a New York ria? A study ran scared from Mr. Trump’s those that can be attributed to Times story in February 2016, Dynasty published by tweet. the effects of the weather like titled “How Free Electricity AMERICAS the Milken In- Absent from most of the re- flood drownings or flying de- Helped Dig $9 Billion Hole in By Mary stitute School porting has been any serious bris, for example.” Weather Puerto Rico,” island officials The Browns of California Anastasia of Public discussion of the difference experts “also look at and sepa- mismanaged the power com- By Miriam Pawel O’Grady Health at between the findings of the rately list indirect deaths, like pany for years, which left the George Wash- study and Mr. Trump’s obser- automobile accidents, electro- grid highly vulnerable when (Bloomsbury, 483 pages, $35) ington Univer- vations during his trip to the the storm hit. sity found that from Septem- island to survey hurricane In fact, local government ew families are as closely intertwined with the history ber 2017 through this damage. This is worth trying ‘Excess deaths’ are a was thoroughly unprepared F of California as the Browns. In a multigenerational saga February there were an esti- to understand, though not for for Maria. According to the that focuses on governors Pat and Jerry Brown, veteran mated 2,975 “excess mortali- those who want to use dead dubious measure, and George Washington University journalist Miriam Pawel has written a vivid history of a ties” in the commonwealth— Puerto Ricans as a political Puerto Rican officials study, “neither the Depart- political dynasty that has governed the Golden State for fatalities which, the study’s tool. ment of Public Safety nor the nearly a quarter century. authors conclude, might not John Morales, chief meteo- were unprepared. Central Communications Of- “The Browns of California” begins in 1852, when Prussian have occurred if not for Maria, rologist at WTVJ, Miami’s NBC fice in the Governor’s Office immigrant August Schuckman arrived seeking his fortune as which hit Sept. 20, and Hurri- affiliate, handled the statisti- had written crisis and emer- a transporter of goods for gold miners. He soon settled on a cane Irma three weeks earlier. cal questions around the wide cutions, and carbon monoxide gency risk communication ranch in the rattlesnake-infested hills near Colusa, northwest President Trump pushed range of death-toll estimates poisonings from power gener- plans in place.” The Health De- of Sacramento. His fortunes grew quickly, but for Ida, the back, tweeting last week that apolitically in an Aug. 28 essay ators, to name a few,” and partment’s Office of Emer- youngest of his eight children, life in Colusa proved too “3000 people did not die in posted on the station’s web- “emergency management gency Preparedness and Re- limiting. In 1896 the 18-year-old set off for San Francisco, the two hurricanes that hit site. He did not dispute the in- agencies follow the same sponse “had an outdated which at the time called itself “the Paris of America.” It was Puerto Rico,” and that when crease in fatalities in the model.” But officials from emergency plan.” there that she met the Irish-Catholic immigrant Ed Brown. A he visited soon after Maria, months after the hurricanes. these agencies are “normally What’s more, “agency emer- year later they married. Their first child, Edmund G. “Pat” the toll was between six and His contribution to the debate the ones briefing the politi- gency plans that were in place Brown, was born in April 1905. 18. revolves around the limita- cians,” so that, “the politicians were not designed for greater Displaying an early gift Cue the outrage from Dem- tions of statistical modeling are used to counting deaths than Category 1 hurricanes, fororatory,Patwent ocrats, journalists, late-night and the importance of com- just like the National Weather and risk messages conveyed to straight from San Francisco’s hosts and Puerto Rico’s politi- paring apples with apples. Service does.” the public in preparedness elite public Lowell High cal class. Mr. Trump’s tweet Mr. Morales cited other Whether “excess mortality” campaigns were reported by School to attending law was described as “sickening” studies that have tried to put a studies are “the right way to key leaders to inadequately school at night. After a stint and “falsely” denying the number on post-storm deaths. count the dead” is not the is- prepare communities for a cat- working for a well-connected death toll. CNN’s Jake Tapper, He noted that the estimates sue, Mr. Morales observed. astrophic disaster.” The Fed- Republican lawyer, he helped in a segment titled “Fact vary widely because the meth- What matters is that they are eral Emergency Management found a group that fought Check: Trump’s false claim on odology is not always the same “not available for most hurri- Agency had a local office on government corruption. During PR deaths,” rambled for four and researchers choose a vari- cane disasters” so there is no the island, manned by Puerto the Great Depression, he minutes about how the presi- ety of time frames. Even way to compare the findings Ricans. They too were unpre- scraped together a living mainly dent’s statement was “a lie.” within studies there is a wide with other similar events. pared, as I explained in an Oct. by collecting bills. Buoyant and As evidence, Mr. Tapper range of possible deaths attrib- The attack on Mr. Trump is 2, 2017, column. well-liked, Pat became San cited an endorsement of the utable to the storms and “the a disservice to Puerto Ricans If there is anything despica- Francisco’s district attorney in study’s findings by Gov. Ri- large range denotes a high de- because it helps island politi- ble about all this, it’s not Mr. 1943 and California’s attorney cardo Rosselló, who is widely gree of uncertainty.” cians dodge their own respon- Trump’s tweet. Rather it’s the general in 1951. He was a Democrat who known to have national politi- The other problem is that sibility for the loss of life. The media’s zeal to use the body nevertheless had warm relationships with cal aspirations in the Demo- “hurricane fatalities are not failure of medical equipment count for political gain. wealthy Republican donors and state Republicans such as cratic Party. Mr. Tapper threw customarily counted this way,” due to power outages, for ex- Write to O’[email protected]. Gov. Earl Warren—support that proved useful when Pat ran for the governorship in 1958. Waging a “nice guy” campaign and benefiting from well- funded union opposition to a right-to-work initiative that Drug Rebates Aren’t ‘Kickbacks’ conservatives had placed on the ballot, Pat swept into office with 60% of the vote and remained there from 1959 to 1967. By Joseph Antos of numerous clients. When sive and less generous. ment spent $37 billion in 2017 During that time, California overtook New York as the nation’s And James C. Capretta more than one patented drug Yet while a complete ban on covering expenses for benefi- most populous state. Pat was the first Democrat to lead is available for an illness, rebates would backfire, Medi- ciaries above the catastrophic California in almost two decades and is best known for he Trump administra- manufacturers offer rebates care’s drug benefit needs to be threshold, up from $9 billion expanding the state’s public university system, embarking on T tion is close to issuing a for preferred placement. fixed, because it favors re- in 2008. massive projects to bring water from the state’s rain-saturated new rule that could ef- The Trump administration bates rather than lower prices. This problem can be fixed north to the parched fields of the south, and funding fectively ban rebate payments says that because consumer Above a modest level of drug not with a ban on rebates, but California’s highways. from drug manufacturers to payments are based on prices spending, private Medicare by requiring insurers and Pat’s son, Edmund G. “Jerry” Brown Jr., followed his pharmaceutical benefit man- before rebates, patients don’t drug plans (mostly insurance PBMs to pay more of the costs father’s footsteps into the governor’s mansion in 1975, at the agers, or PBMs. The plan is benefit from the savings. plans tied to PBMs) are re- for drugs above the cata- age of 36. Through two terms, he put women and minorities misguided. A full ban would That’s only part of the story. sponsible only for a small por- strophic threshold. If Medicare into staff offices and placed an emphasis on environmental backfire and increase costs to PBMs typically require lower tion of a patient’s drug plans were responsible for policies. After leaving office in 1983, Jerry embarked on what consumers. out-of-pocket payments from costs—15% once a benefi- 80% of the cost instead of 15%, Ms. Pawel calls his “wilderness years,” spearheading a grass- The regulation, now under ciary’s expenses exceed the they would have an incentive roots effort to turn Oakland into a green “ecopolis”: He review at the Office of Man- annual catastrophic threshold, to press for lower prices for founded an Oakland commune that hosted Cosmic Rave agement and Budget, could re- A rule designed to $5,000 in 2018. The Medicare their high-cost patients. That Masses, a Martin Buber study group, sustainability workshops move the safe-harbor protec- program pays for 80% of the would produce a better bal- and yoga classes in a modernist warehouse he owned near tion for rebate payments save patients money costs above this threshold, ance between lower list prices Jack London Square. under an anti-kickback law. would end up having and beneficiaries pay the re- and rebate payments. But rebates are price dis- maining 5%. Administration officials counts, not kickbacks. They re- the opposite effect. Because insurers and PBMs claim they want to lower drug Four generations of Browns, including father- duce prices based on sales vol- pay such a small portion of prices with market incentives, and-son governors Pat and Jerry, have helped ume: Drug companies charge the costs above the cata- but a broad-based attack on less when more of their drugs patients who use preferred strophic threshold, they are drug rebates is the opposite of to shape the politics and culture of California. are sold to patients. drugs, and they save consum- less sensitive to high drug a market solution. Streamlin- PBMs are at the center of ers money by steering them prices than they should be. ing regulations to bring new the debate. Private employers toward generic drugs. High prices at the pharmacy products more quickly to the Returning to politics in 1999, Jerry became Oakland’s and insurers, faced with rising Consumers also benefit di- push beneficiaries above the market, reforming Medicare’s mayor for eight years—the first white man in two decades drug costs, have turned to rectly from rebates paid to catastrophic threshold quickly, drug benefit design, and re- elected to lead this ethnically diverse city—and state attorney PBMs to manage their drug PBMs. The Altarum Institute so the government begins moving unnecessary interfer- general for four years after that. Then, almost three decades benefit programs. PBMs de- estimates that in 2016 PBMs picking up most of the bill. ence that impedes competition after leaving office, Jerry ran for—and won—the governorship velop lists of covered drugs, or earned $11 billion in profits Medicare drug plans prefer re- would do far more to promote again, returning to office in 2011. In January 2019, when he formularies, negotiate dis- and passed on $89 billion in bates over lower prices be- affordable and effective medi- finishes his fourth term at the age of 80, Jerry will leave as counts and rebates with drug rebates to employers and in- cause they can use rebate cines for Americans. California’s oldest governor, concluding a long run in makers, and pay claims. PBMs surers. Health plans in turn payments to lower their pre- Sacramento filled with dramatic highs and lows. lower the cost of the benefit have strong incentives to pass miums, leading to higher en- Mr. Antos is a resident It’s a political career the Pulitzer Prize-winning Ms. Pawel by steering patients toward on rebate revenue to their enrollment and greater leverage scholar in retirement and elucidates with sparkling prose and telling details, especially preferred drugs. rollees in the form of lower with drug makers. health policy at the American about the influence of Jerry’s spiritual life in his public PBMs have more leverage premiums and better cover- Not surprisingly, spending Enterprise Institute. Mr. service. “The prospect of a life devoted to religion and service than employers or insurers be- age. A ban on rebates would for the drug benefit has be- Capretta is a resident fellow of God struck me as far better than making a name in cause they negotiate on behalf make coverage more expen- come distorted. The govern- at AEI. business or law or acquiring material goods,” Ms. Pawel quotes Jerry as saying, in describing an alternative to his father’s commercial politics. Ms. Pawel doesn’t ignore the less-than-flattering moniker John Kerry, Meet George Logan of “Governor Moonbeam” that Chicago columnist Mike Royko first gave Jerry in the late 1970s amid the young governor’s By Seth Lipsky been colluding with them? Or, while American GIs were still Sen. Barry Goldwater sug- efforts to launch a California space program. Or the glamorous as radio host Hugh Hewitt in combat. Back in Washing- gested Mr. Kerry had violated images of Jerry traveling in Africa with then-girlfriend Linda eorge Logan, call your asked Mr. Kerry last week, has ton, in his notorious 1971 tes- the Logan Act. No charges Ronstadt in 1979. Or his role, during his second term as G office. That’s my reac- the former secretary of state timony, he told the Senate were brought. The law hasn’t governor, in implementing the state’s Proposition 13, which tion to news that for- been “trying to coach” Iran’s Foreign Relations Committee been used in 166 years—how sharply curtailed property-tax increases and led to the erosion mer Secretary of State John foreign minister, Javad Zarif? that if the U.S. set a date for could one compel foreign in- of public services. Or the controversial high-speed rail project Kerry has, by his own ac- “That’s not how it works,” quitting Vietnam, the commu- terlocutors to testify?—and some call the “bullet train to nowhere.” count, been meeting privately Mr. Kerry said. “What I have nists would allow GIs safe no one has ever been con- Deftly contrasting Pat’s era of boom-boom public spending with Iranian officials to try to done is tried to elicit from passage. victed of violating it. That with Jerry’s focus on fiscal restraint, Ms. Pawel paints a save the nuclear deal. him what Iran might be will- Sen. George Aiken of Ver- may be because circumstances powerful portrait of this complex but loving father-son Logan was the Pennsylva- ing to do in order to change mont asked whether the are often cloudy, or involve relationship. Strong women play a prominent role in the nia politician whose unau- North Vietnamese might help members of Congress, such as Brown family. There’s Jerry’s brilliant mother, Bernice, who thorized efforts to end the carry our bags. “I would say calls for Logan charges earned her degree from the University of California, Quasi-War between France Is it a crime to meet they would be more prone to against 47 senators who Berkeley, at the age of 19 and helped ease partisan divides and America led to the Logan with Iranian officials? do that than the army of the warned Iran in 2015 of the with her elegant entertaining; and Jerry’s sister Kathleen, Act of 1799, which outlaws South Vietnamese,” Mr. weakness of any agreement who rose from the Los Angeles board of education to state freelance diplomacy. It may well be. Kerry quipped. The hearing not approved by Congress. treasurer and was once described by Pat as “the real The New York Post has broke into laughter and ap- In 2017 Democratic law- politician in the family.” called Mr. Kerry’s conniving a plause at the expense of makers even sent a letter to Then there’s Anne Gust, a former corporate lawyer whom “textbook violation” of the the dynamic in the Middle America’s allies. Attorney General Loretta Jerry married in 2005. “Anne provided the structure,” Ms. law. President Trump, after East.” He insisted he’d been Once Mr. Kerry became a Lynch, asking for an investi- Pawel writes, “that Jerry always sought.” It was with Ms. all, has pulled out of the nu- “very blunt.” Mr. Kerry also senator himself in 1985, he gation of President-elect Gust as Jerry’s de facto chief of staff that Jerry was able to clear accord and decided on a told Mr. Hewitt that the ad- promptly jetted off, with fel- Trump for alleged unauthor- find his way back to Sacramento in 2011, more focused and different course. Iran’s lead- ministration appears “hell- low freshman, Tom Harkin of ized diplomacy. They were up- with a more realistic understanding of what it takes to ers, at least for the moment, bent-for-leather determined Iowa, to meet with another set at his phone calls with govern a state that, if independent, would have the world’s are hanging onto the deal. to pursue a regime change Marxist adversary, Daniel Or- foreign leaders during the fifth-largest economy. Why not? It has brought bil- strategy” in Iran. “I would tega of Nicaragua. “From my transition. Ms. Pawel recognizes the limits of attempting to write the lions to their coffers as they simply caution that the United vantage point,” Mr. Kerry Yet has there ever been a definitive book on a family dynasty while its scion is still in expand their military cam- States historically has not had writes in his new memoir, “it case as clear as Mr. Kerry? power. “I leave it to future historians,” she writes, “to pass paigns in the Mideast. a great record in regime was far from a simple black- The president tweeted that judgment on the Brown legacy, which will become clearer with Last week the New York change,” Mr. Kerry said. He and-white battle of good ver- Mr. Kerry’s meetings with distance.” Future historians may not treat the Browns so Times quoted “experts” as added that it makes it “very sus evil. Even then it felt “the very hostile Iranian re- kindly. But Ms. Pawel, with her extensive interviews, deep suggesting that the ayatollahs difficult, if not impossible” for much more like a classic gime” were “illegal.” Will he archival research and brilliant synthesis, has made an are “gambling” that Mr. Iran to negotiate. choice between shades of take care that the laws be enormous contribution to the historical record. Trump will be “crippled” in This is Mr. Kerry’s modus gray.” So the pair brought faithfully executed? the midterm elections or operandi. In 1970, as an anti- back a cease-fire proposal. Ms. Siler is a former WSJ staff writer. Her next book, swept out of office in 2020. war Vietnam veteran, he met That infuriated the Reagan Mr. Lipsky is editor of the “The White Devil’s Daughters: The Fight Against Slavery in So have the Democrats in Paris with enemy envoys administration. New York Sun. San Francisco’s Chinatown,” will be out in May. A18 | Monday, September 17, 2018 THE WALL STREET JOURNAL. OPINION

REVIEW & OUTLOOK LETTERS TO THE EDITOR The Election Tax Divide California: All Clean, Green and Alive by ’45 ith Democrats focusing every cam- SEP IRAs, 403(b) plans, 401(k)s and more. All Your editorials “100% Certifiable wildlife, endangered species or not, paign moment on Donald Trump, the have separate contribution and withdrawal lim- California” (Sept. 10) and “California’s will be eradicated. W Carbon Exorcism” (Sept. 12) note the The Nimby attitude also applies to policy stakes in November are fuzzy its and varied tax treatment. The House would anticipated increase in electricity cost the nuclear, hydroelectric, gas and to many voters. House Repub- even expand 529s to allow for per kilowatt-hour associated with coal plants the state will need to licans tried to clarify at least The GOP wants to make spending on apprenticeships production without fossil fuels. But meet its imported electricity needs. one major difference between tax cuts permanent. or home-school supplies, or the bill paid by the consumer is cost Such plants will no longer be permit- the parties last week by pro- even to repay student debt. per kWh multiplied by the user’s con- ted within California’s borders. posing a second round of tax Democrats want repeal. These accounts let politicians sumption in kWh. California is a PAUL DRIESSEN reduction. reward certain taxpayer be- leader in reducing that consumption, Fairfax, Va. The core of reform 2.0 is havior, instead of lowering through the design and installation of making last year’s tax-rate cuts for individuals rates to promote growth. energy-efficient heating, ventilation, Regardless of the cost of this Cali- and families permanent. Congress made the Republicans would also let Americans tap re- air conditioning, lighting and appli- fornia folly, efficient technologies corporate cuts permanent to provide invest- tirement accounts for expenses associated with ances. It’s estimated that there are that can store excess solar and wind ment certainty, but its weird deficit scoring having a baby. Folks could take out up to $7,500 over 300,000 jobs associated with in- energy must be created for this stallation of that energy-efficient scheme to work. The first choice rules forced the expiration of individual and replenish the money later above the annual equipment, not counting the installa- would be batteries, and the second changes at the end of 2025. contribution limit. The thinking is that young tion of solar panels. The burden on would be technology known only to Sunsets set up a showdown when the expira- Americans are likelier to start saving for retire- Californians associated with 100% science-fiction writers. The futility of tion arrives, and rarely for the better. By the ment if they think they can use the money for fossil-free electricity will be consider- imposing a 100% renewable mandate time the Bush tax cuts expired in 2012, Barack more purposes. Maybe. ably less than you suggest. is evident, as your editorial points Obama was President and insisted on letting the This is at least better than creating a new en- You deny that reduced electricity out: Elon Musk’s 100-megawatt Aus- top individual rate snap back to 39.6% on in- titlement or raiding Social Security to finance consumption due to efficiency man- tralian battery could only keep come above $450,000 for a couple filing jointly, paid time for having a child. Then again, propo- dates can compensate for increased 30,000 homes running on electricity among other tax increases. The new GOP pro- nents of government-subsidized paid leave like electricity cost per kWh in California, for one hour. posal would avoid a repeat by making all the GOP Senator Marco Rubio or Ivanka Trump will asserting that low-energy appliances Sales of Tesla’s Powerwalls remain new rates permanent, including the new 37% want both. The left will gripe that Americans are more expensive. Consider the re- extremely low. Why? Because they frigerator, once a voracious household can only generate enough energy to top rate. who don’t have access to paid leave also don’t consumer of electricity. Modern re- power an average-size home for less The bill would also cement the $10,000 cap have enough money to save. This is a reminder frigerators use only about 25% of the than half a day. on the state and local tax deduction that is so that Republicans who try to outbid Democrats energy they used in 1975. Fossil fuels, particularly coal and hated by Democrats in New York and California. on tax credits or income redistribution will al- RILEY NEWMAN natural gas, are the most efficient and The cap means more money for Treasury, which ways be outbid. The best redistribution plan is Irvine, Calif. affordable energy sources known to Democrats would have to surrender if they want faster economic growth. humankind. to lift the restriction. But permanence would The House may vote on the Ways and Means The Journal should applaud Cali- TIM HUELSKAMP, PH.D. keep the pressure on liberal states to reform package before the election, though the Senate fornia for taking the lead against the President, The Heartland Institute their tax codes. has no plans to take it up because Republicans emission of greenhouse gases. The Arlington Heights, Ill. Republicans have tossed in cats and dogs like lack 60 votes. That’s too bad. Senate Democrats federal government is working to turn back the clock, so it is refreshing I am a retail customer of Pacific making it easier for businesses to set up 401(k)s in tight re-election contests this year com- to see that at least some state gov- Gas & Electric living 40 miles east of for employees. They’d also consolidate and explained that last year’s reform didn’t include ernments see that action is needed. Sacramento. My base rate for the first pand provisions that allow new businesses to permanent cuts for families. LARRY KRAMER 441 kWh of usage in a month is 21 deduct start-up expenses, which is popular and “I wanted to be able to support a responsi- San Juan Capistrano, Calif. cents per kWh. The next 1,324 kWh may reduce barriers to capital formation. ble, permanent tax reform bill that stands up are billed at 28 cents per kWh and Less useful is a “universal savings account” for workers, families, and retirees while staying Building the much-ballyhooed tech- anything over 1,765 kWh is billed at that would let Americans save $2,500 a year in fiscally responsible,” North Dakota Democrat nologies needed to capture and use 43 cents per kWh. And this is an av- after-tax dollars that could grow tax-free and be Heidi Heitkamp said last year. “But this bill “free, renewable” wind and solar en- erage month of usage during summer withdrawn without a tax penalty. The idea is to gives large corporations a permanent tax cut, ergy requires removing billions of with the thermostat set at 78 degrees reward saving over consumption, and it would while the tax cuts for working families expire tons of rock and earth to extract mil- for a three-bedroom home. That’s an function much like a Roth IRA except the money in a few years.” How about putting that claim lions of pounds of lithium, cobalt, average of 29 cents per kWh, already rare earth and other exotic ores for 50% more than the alleged California could be withdrawn at any time for any purpose. to the test? photovoltaic panels, wind-turbine average of 20 cents per kWh. Thank If Americans favored this over the Roth, it could If nothing else, the House proposal makes magnets and backup batteries. Bil- goodness my home is heated by natu- mean less saving for retirement. clear that Republicans want to cut taxes while lions more tons must be removed to ral gas, but the wackos will surely try The vehicle would also be one more account Democrats want to raise them. Voters who want get millions of tons of concrete, iron, to ban gas soon. in a menagerie that already includes health-sav- to continue the economy’s robust growth manganese, copper, petroleum-based If I had an electric car and drove ings accounts, 529 accounts for education, IRAs, should keep that in mind. plastics, composites and other materi- 50 miles a day it would add another als for solar panels and frames, wind- 500 kWh a month and my fuel (en- turbine blades, nacelles, generators ergy) cost at 43 cents per kWh would and towers, football-field-sized bat- be $215 a month, significantly more Credit to the Carolinas tery arrays and ultralong transmis- than an average, midsize sedan’s fuel sion lines to carry expensive electric- costs. The weather in Idaho is look- ince Friday, when Hurricane Florence there are individuals who can’t flee because of ity from renewable-energy “farms” to ing pretty good right now. At least S made landfall on the coast of North Car- age or health, or didn’t flee due to bad judg- distant urban centers. the inmates aren’t running the asy- olina, the story has been about men and ment. Rescue teams, often led by the National The more exotic raw materials are lum there. women fighting to survive a Guard, have worked around mined and processed in Mongolia, LARRY WEITZMAN death struggle with wind- The floodwaters are still the clock to save the China and the Democratic Republic of Placerville, Calif. blown water. So far the peo- rising, but the rescue stranded. Skilled rescuers Congo under minimal to nonexistent ple of North and South Caro- have arrived from New York, environmental, health and safety We will welcome with open arms lina and all who have pitched effort is impressive. Texas, Georgia, Missouri and standards. Millions of acres of crop all of California’s refugees flooding in to help them have given elsewhere. Examples of loot- and habitat land are impacted or de- into our state, fleeing their state’s ex- Florence a good fight. ing have been rare. stroyed in the process and by the pensive utopian policies. KENT JAMISON The devastation from the hurricane’s 11-foot A Journal story Sunday on the Florence res- huge wind, solar and battery facilities. Millions of birds, bats and other Huffman, Texas storm surge and relentless rain is significant. cuers quoted National Guard Sgt. Nicholas Mu- The hurricane had killed an estimated 15 peo- har, who captured the simple reality of how so ple as of Sunday. Still, it is impossible not to much good work gets done fast. “We’ve just be moved by the determination of North and been running and running and running,” said South Carolinians to survive this storm and the Sgt. Muhar. “It’s just: next thing, next thing, Evolutionary Psychology and Paying for Dates acts of heroism on their behalf. next thing. Just do it. Get it done.” In response to “Who Should Pay on but I was able to convince her to try a Deaths have been minimized in large part The impressive initial fight against Florence a Date? It’s Complicated” (Life & Arts, date with me. Since she was employed because, with enough advance warning, most has provided a template of civic action for the Sept. 4): There are many very compli- as a medical researcher and I was in people heeded public directives to move in- great and expensive rebuilding that lies ahead cated aspects of human relationships, my final year of medical school and land. Typically in these circumstances, though, for North and South Carolina. but I disagree that this is one of them. had little cash, she said she would If you ask someone out on a date, you cook dinner. I contributed a bottle of should pay for it. André Cold Duck. In my generation, it would have We are still together and have fig- Big Labor’s Deep State been wholly inappropriate for my date ured out how to pay for dinner on to have to pay for the cost of a date dates. Our kids pay. As I told my resident Trump has complained about point Business Services in Browning-Ferris. when she may have had no input in daughters-in law after they thanked P a “deep state,” and at least with respect Board Inspector General David Berry the decision-making process. For any me for taking everyone out for family to the National Labor Relations Board he launched an ethics investigation and agreed of my relationships to work, I ex- dinner at our favorite Italian restau- has a point. Consider the she- with Democrats—which is cu- pected some sort of reciprocity, mean- rant: “The money is coming out of our nanigans Democrats are using Republicans on the rious since the IG had no ing the woman would ask me to do estate and thus your inheritance.” ELLIOT DAVIDOFF, M.D. to enshrine the Obama board’s NLRB give in to qualms with Obama NLRB ap- something in return. Once, a date joint-employer standard. pointee Craig Becker, who had asked me to have a picnic lunch with Granville, Ohio her in the park. Her commitment to The NLRB on Thursday pro- Democratic bullying. previously represented the the relationship mattered, not how Helen Fisher, a biological anthro- posed a rule to reverse the SEIU, hearing cases involving much she spent. pologist, is cited saying “women want Obama board’s 2015 Brown- the union’s local affiliates. HENRY SCOTT to know if a man will spend his re- ing-Ferris decision that redefined joint-em- Yet Mr. Emanuel was under no ethical—let Potomac, Md. sources on her.” If a man doesn’t pay, ployer relationships and threatened to destroy alone legal—obligation to step aside since a there’s an evolutionary reason for the franchise business model. Under longstand- White House executive order merely requires This is a debate that has been going that, too. He is conserving his re- ing labor law, a company could be held respon- agency appointees to recuse themselves from on since at least 1970. In that year, I sources until he has established the sible for its contractor’s employees only if it ex- a “particular matter involving specific parties” met a hot redhead and asked her out. worth of the woman as a child bearer. ercised “direct and immediate” control over that are “directly or substantially” related to a She initially rejected my invitation, If, as a result of this, the woman their work conditions. former employer or client. Littler Mendelson shoots the man, then the reason is ob- Unions complained that this made it more dif- wasn’t a party in Hy-Brand. vious: Via group selection, she im- A Plea to Bring Back the proves the lives of all women. Evolu- ficult to organize workers and draw corporations Nonetheless, Democratic board members tion is so very wonderful. There’s into labor negotiations. The Obama NLRB pro- took advantage of a Republican vacancy in Feb- Hated Gym Rope Climbing simply nothing that it cannot explain. ceeded to hold in Browning-Ferris that a company ruary to sideline Mr. Emanuel and vacate Hy- Regarding Mike Kerrigan’s “Kids LASZLO BENCZE was a joint-employer even if it exercised only in- Brand. NLRB General Counsel Peter Robb has Don’t Learn the Ropes These Days” Roseville, Calif. direct and limited control over another com- supported Mr. Emanuel’s participation, but the (op-ed, Sept. 10): I, too, remember pany’s workers. Browning-Ferris has no limiting GOP majority appears cowed. those ropes. It was one of many chal- principle. Microsoft could be a joint-employer Under the Democrats’ recusal standard, a Re- lenges that looked much smaller after Pepper ... merely because it requires suppliers to provide publican majority could never overturn Brown- having accomplished it. Today we And Salt 12 weeks of paid leave for new parents. ing-Ferris since employers who were once cli- have a whole generation that is afraid Typically, the NLRB uses new cases to re- ents of Littler Mendelson or Chairman John to risk anything and feels endangered THE WALL STREET JOURNAL verse precedents if it wants to change a legal Ring’s former law firm Morgan Lewis & Bockius by any challenge. They observe their 40th birthday without having held a standard. But the Trump NLRB says a rulemak- might indirectly benefit. If this same standard job, playing iPhone games in their ing is “desirable” to overturn Browning-Ferris were applied across executive agencies, the mother’s basement. because of the “recent oscillation on the joint- Trump Administration would be incapacitated. Let’s bring back the ropes in the employer standard” and “the wide variety of Surrendering on Hy-Brand emboldens Demo- gym and shop classes with table saws business relationships that it may affect.” No crats to demand more recusals. and lathes. Life is about risk-taking. doubt that’s true, but the real reason the GOP Democratic board member Lauren McFerran You don’t succeed if you never try. has resorted to a new rule is because Democrats has teed up a legal challenge to the proposed LARRY BACKER have weaponized ethics rules to handcuff the new rule in her dissent. Unions no doubt are Blue Ridge, Texas Republican majority. hoping that a liberal judge will issue a nation- Last year the Trump NLRB reversed Brown- wide injunction that preserves Browning-Ferris Letters intended for publication should ing-Ferris with its Hy-Brand decision. But Dem- until Elizabeth Warren and her labor friends be addressed to: The Editor, 1211 Avenue of the Americas, New York, NY 10036, ocratic Senators and board members groused swoop into the White House. You can bet Demo- or emailed to [email protected]. Please that Republican member Bill Emanuel should crats won’t bind themselves with the same include your city and state. All letters have recused himself because he previously rules. If GOP board members really want to re- are subject to editing, and unpublished worked for the law firm Littler Mendelson, store traditional labor standards, they shouldn’t letters can be neither acknowledged nor returned. which had represented the subcontractor Lead- unilaterally disarm. “You have no new messages.” THE WALL STREET JOURNAL. Monday, September 17, 2018 | A19 OPINION Why China Is Brutally Suppressing Muslims

By Robert D. Kaplan deep, unspoken reason why China East and South China seas. In turn has never liberalized is its authori- this will open up the Indian Ocean, he repression of the Tur- tarian leadership fears ethnic rebel- where China has been building and kic Uighur Muslim com- lion. Uprisings of this sort happened helping develop new ports between munity in western in the outer reaches of the Soviet Myanmar and Djibouti. Who says T China—including the re- Union after it liberalized in the that the age of empire has passed? ported internment of up 1980s. So China has kept its political Because the U.S. is located half a to a million people in secret system closed, while simultaneously world away, it is at a distinct disad- camps—is a key part of Beijing’s pushing into Central Asia through vantage in thwarting this new impe- new imperial policy. Only by under- diplomacy and economic interven- rial rise. Washington still has a geo- standing the dynamics of Chinese tions. It is building vast infrastruc- political interest in making sure no empire can one grasp this brutal ture projects in the region to ally individual state holds sway over the campaign. with the Turkic Muslims of the for- Eastern Hemisphere as the U.S. once Xinjiang, a province home to mil- mer Soviet Union and deny China’s influenced the Western Hemisphere. lions of Uighurs, translates to “New own Muslims a friendly rear base A Chinese Silk Route that runs Dominion.” The area has been his- for future rebellion. China’s push be- through Iran and beyond, with a na- torically and geographically known yond its borders ultimately has to val presence over the navigable as East Turkestan. Though the Chi- do with demons within. southern rimland of Eurasia, would Because China historically has do that. never been secure on land, particu- A policy of zero-sum bilateral- The assault on the Uighurs larly in this western region, it has ism—the current American ap-

not had the luxury of going to sea. JOHANNES EISELE/AFP/GETTY IMAGES proach—forfeits the strongest asset serves Beijing’s imperial Except for the Indian Ocean exploits Outside a mosque in China’s Xinjiang Uighur Autonomous Region, 2017. the U.S. has in this struggle: a sys- ambitions, which require of Adm. Zheng He during the early tem of alliances undergirded by the Ming Dynasty, China has had a de- all these road and energy pathways awarded control of the ports and American ideals of free markets, stable land borders. monstrably weak naval tradition. between coastal China and the Mid- highways it builds there. Undercov- civil society and human rights. In Yet China, mostly secure on land to- dle East must pass through Xinjiang. ered is the ethnic dimension of Chi- this competition, holding China to day, aims to posses the world’s larg- The Chinese plan is to dilute tra- nese grand strategy across Eurasia. account for its human-rights viola- nese state has existed for more than est navy. The intensifying suppres- ditional Uighur culture by forcing It deserves more attention: The des- tions against the Uighurs is a com- 3,500 years, Xinjiang first became sion of the Uighur Muslims is the people into regimented apartment ert home of the Uighur is the poten- ponent in a realist approach that part of China’s Qing Dynasty only in final act in this process. The Belt blocks and modernizing folkloric tial weak link in China’s Silk Route also seeks to limit the Chinese navy the mid-18th century. Since then it and Road Initiative—forging trans- markets. They also seek to connect nexus. in the South China Sea. Just as has often been in a condition the portation corridors by land and sea towns with new highways and high- Don’t underestimate national China’s suppression of the Uighurs British explorer Fitzroy Maclean la- across Eurasia—requires the com- speed rail, as I saw on a return visit pride and resentment in this pro- is part of its grand strategy, Amer- beled as “sustained turbulence.” plete subjugation of the Uighur to Xinjiang in 2015. And they are cess. Hong Kong and Macao have ica’s commitment to human rights When I first traveled through population. placing many thousands of Uighurs been taken back from the European in China should be part of its own Xinjiang and interviewed Uighurs in The heart of this 21st-century Silk in internment camps while raising colonialists, formally ending an era approach. 1994, their hatred of what they con- Route is Central Asia. By building living standards for others—classic of humiliating foreign intrusion in sidered ethnic Han Chinese occupi- roads, railways and energy pipelines carrot-and-stick tactics. All this is China’s core. Outer Mongolia’s sov- Mr. Kaplan is author of “The Re- ers was complete. “This is Turke- across the former Soviet Turkic re- designed to end Uighur Muslim cul- ereignty has been undermined sig- turn of Marco Polo’s World: War, stan, not China. Chinese don’t learn publics, China will connect with ture as it exists today, to complete nificantly by Chinese economic in- Strategy, and American Interests in our language, and many of us don’t Iran. A Chinese-Iranian economic the Han Chinese domination of its terests. Tibet has been subjugated. the Twenty-First Century” (Random learn theirs. Even on a personal and infrastructure alliance has the most contentious borderland. Xinjiang now looms as the last hold- House, 2018). He is a senior fellow level, relations are bad,” one young potential to dominate Eurasia, side- The media have focused on China out before Greater China is truly re- at the Center for a New American Uighur man told me. lining Russia. But this requires a drowning countries like Pakistan alized on land, allowing China to Security and a senior adviser at Eur- Relations have worsened since. A compliant Uighur population, since and Sri Lanka in debt, so that it is concentrate fully on dominating the asia Group. Trump’s Half-Measures Won’t Save the Coal Industry By Paul H. Tice to set their own emissions stan- ing completely carbon-free electric- ues to drop. In turn, domestic coal frastructure assets—including refin- dards for coal-fired power plants, ity by 2045. production has declined more than eries, processing plants, terminals aucous West Virginia rallies in line with federal guidance to- Driven by these goals—and one-third since 2008, to a level not and pipelines—as potential station- R notwithstanding, President ward heat-rate efficiency improve- fueled by various government tax seen since the 1970s. ary targets for overzealous regula- Trump has thus far failed to ments and based on a range of al- subsidies—total wind and solar It has been five years since the tors at the state level. deliver on his campaign promise to ternative technologies. Such a power nameplate capacity grew six- last new coal-fired power plant was The first comprehensive Clean resuscitate the coal industry. This state-based approach would be pos- fold between 2007 and 2016, the brought online in the U.S. Any util- Air Act, the foundation of Amer- is mainly for lack of political will in itive for the coal industry if the latest year for which Energy De- ity executive proposing to build an- ica’s modern environmental policy, his administration to address the Clean Power Plan and similar regu- partment data is available. Given other one in the current political was passed in 1970 with bipartisan climate-change elephant in the lations had merely been anomalous flat U.S. electricity demand since and regulatory environment would support—and no mention of carbon room. While Mr. Trump has rolled examples of federal overreach. They the 2008 recession, such excess re- be taking on significant risk for his dioxide as a pollutant. In the less back key components of the Obama weren’t. Rather, President Obama’s newable capacity has served to de- company and his career. Utility than 50 years since, judicial and anticoal agenda such as the Paris war on coal was the extension of press wholesale power prices and management teams have so far re- state activism have subjected the Agreement and the Clean Power an equally aggressive climate- sponded tepidly to the Trump ad- U.S. economy to innumerable car- Plan, these moves were part of a change-driven regulatory campaign ministration’s rule turning regula- bon-dioxide restrictions, with Con- broader deregulatory push, with no at the state level. The EPA is granting more tion over to the states. gress having had no say over the discussion of whether addressing In the early 2000s, there was a While states may be the laborato- matter. This wave of regulation has climate change is a worthy policy concerted push by states to replace power to states, but most ries of democracy, the low-carbon progressed unchecked despite the goal overall. fossil fuels by adopting Renewable already have committed to regulatory experiment will stress strategic economic importance of But actions that at first might Portfolio Standards, which require the reliability and stability of the the energy sector and Congress’s have seemed like careful first steps utilities to generate or sell a speci- quitting fossil fuels. national electricity grid. An addi- constitutional authority to regulate of rolling back the Obama climate fied percentage of their overall en- tional 25% of coal-fired generating commerce. agenda have proved to be mere ergy mix from wind and solar. As capacity is slated for retirement Along the way, this backdoor half-measures. The Affordable of this year, 29 states have ad- crowd out sources such as coal that over the next seven years, while a process has been abetted by Repub- Clean Energy rule, proposed last opted Renewable Portfolio Stan- provide continuous power not de- vast amount of new intermittent lican complacency, with the Afford- month by the Environmental Pro- dards or a similar renewable-en- pendent on weather. wind and solar power is projected to able Clean Energy rule being just tection Agency, made clear that the ergy mandate. Most renewable- State utility commissions also come online. The Affordable Clean the latest example. Absent stronger Trump administration has officially power targets far outpace market serve as gatekeepers for the con- Energy rule may slow this shutter- federal leadership, U.S. energy pol- conceded the argument over man- demand and are set up to increase struction of all electricity genera- ing process, but it will not change icy will soon become a hodgepodge made global warming and the need over time, with some state goals tion facilities. Because most states’ the trajectory of the coal industry. of state climate-change initiatives, to reduce carbon-dioxide emis- bordering on delusional. New York, goals are set in percentage terms, The Trump administration’s new subject to fluctuation with every sions. This capitulation will seal for example, wants to generate they can achieve their goals both rule explicitly recognizes the goal local election and administrative the fate of the domestic coal indus- 50% of its power from renewable by adding wind and solar to the of reducing carbon dioxide and ruling, with the economic impact try over the coming years and have sources by 2030, even though such numerator and keeping coal out of other so-called greenhouse-gas felt by the entire country. broad negative implications for a goal would require covering the denominator. emissions, tacitly affirming the U.S. energy policy over the longer nearly 1,000 square miles of the A decade ago, coal-fired power Obama EPA’s 2009 Endangerment Mr. Tice works in investment term. Empire State with wind turbines plants supplied almost 50% of U.S. Finding. And by punting policy to management and is an adjunct pro- Under the Affordable Clean En- and solar panels. California re- electricity. Today, the figure stands the states, the administration has fessor of finance at New York Uni- ergy rule, the EPA will allow states cently passed legislation mandat- between 25% and 30% and contin- legitimized an array of energy in- versity’s Stern School of Business. Happy Constitution Day, if You Can Keep It By Don Willett Those outside were wary of those ing—no more royal absolutism!—and Council of Trustees and Alumni poll. cious Texan with a Mensa-level civ- inside. ominous, because it suggested the Only 32% can name all three ics IQ named Gregory Watson. ike most Philly crowds, the On the final day of deliberations, survival of freedom depends on peo- branches of government—and 33% In 1982 Mr. Watson wrote a paper L one surrounding Independence Benjamin Franklin delivered the ple, not parchment. can’t name a single one, according as a University of Texas sophomore Hall 231 years ago Monday last great speech of his life, urging The Framers were not tinkerers. to this year’s Annenberg Constitu- arguing that one of Madison’s pro- was amped. delegates to adopt the new Consti- They upended things. The Constitu- tion Day Civics Survey. posed amendments to the Constitu- The infant nation was flounder- tution “with all its faults.” It tion inaugurated a revolutionary de- The legendarily good-humored tion was still eligible for ratification. ing. The United States were any- worked. As James Madison scrib- sign. Madisonian architecture in- Franklin would be dismayed that the The proposal barred Congress from thing but. America’s first governing bled understatedly in his notes, fused with Newtonian genius: three generation of Americans with access raising its salary midterm; it set no document, the Articles of Confedera- “The members then proceeded to separate, coequal branches locked to the most information is also the ratification deadline. Unconvinced, tion, had created a “league of sign the instrument.” in synchronous orbit by competing least informed. Madison—Father of Mr. Watson’s professor awarded him friendship” among states, but the Triumphant, Franklin exited the interests. Ambition counteracting the Constitution—warned of this ex- aC. former colonies hadn’t coalesced hall, and a woman shouted, “Well, ambition. pressly: “A popular Government, Fueled by righteous indignation, into a country. A constitutional re- Doctor, what have we got—a repub- But the truly extraordinary ele- Mr. Watson spent the next decade boot was crucial. lic or a monarchy?” Franklin’s noto- ment? These three rival branches writing letters, bending ears and For four sweltering months, dele- riously sharp-witted reply: “A repub- derived their power from three unri- The long-term survival twisting arms in state capitals from gates to the Constitutional Conven- lic, if you can keep it.” valed words, inscribed on the page sea to shining sea. And in 1992 the tion huddled behind closed doors. Franklin’s zinger was hearten- in supersize script: “We the People.” of the Founders’ design 27th Amendment was ratified—203 In an era of kings and sultans, noth- depends on people, years after Congress proposed it. ing was more radical than the idea Gregory Watson got a bad grade. that ultimate sovereignty resides not parchment. So he amended the Constitution. All PUBLISHED SINCE 1889 BY DOW JONES & COMPANY not in the government but in the it took was aptitude and attitude. Rupert Murdoch Robert Thomson governed. (In 2017 the university officially Executive Chairman, News Corp Chief Executive Officer, News Corp Popular sovereignty isn’t just a without popular information ...is changed Mr. Watson’s grade from C Matt Murray William Lewis Editor in Chief Chief Executive Officer and Publisher theory; it is a duty. “Wherever the but a Prologue to a Farce or a Trag- to A-plus.) people are well informed,” Thomas edy, or perhaps both.” At Disney World recently, my Karen Miller Pensiero, Managing Editor DOW JONES MANAGEMENT: Ramin Beheshti, Chief Technology Officer; Jefferson wrote from Paris in 1789, But even a well-informed popu- children were mortified when I Jason Anders, Chief News Editor; Mark Musgrave, Chief People Officer; Thorold Barker, Europe; Elena Cherney, Coverage “they can be trusted with their own lace cannot guarantee good gover- yelled, “WHOO-HOO!” for anima- Edward Roussel, Chief Innovation Officer; Planning; Andrew Dowell, Asia; Neal Lipschutz, government.” This prognosis under- nance. Franklin cautioned, “if you tronic Calvin Coolidge in the Hall of Anna Sedgley, Chief Operating Officer; Standards; Alex Martin, Writing; Christina Van Tassell, Chief Financial Officer scored what the Constitution pre- can keep it,” because he knew that Presidents. But Silent Cal under- Michael W. Miller, Features & Weekend; Shazna Nessa, Visuals; Rajiv Pant, Product & OPERATING EXECUTIVES: supposes: An enlightened citizenry an engaged citizenry with its sleeves stood the ineffable genius of what Technology; Ann Podd, News Production; Kenneth Breen, Commercial; is indispensable to American self- rolled up was the secret sauce. We happened 231 years ago: “To live Matthew Rose, Enterprise; Michael Siconolfi, Jason P. Conti, General Counsel; government. the People—not We the Government, under the American Constitution is Investigations; Louise Story, Strategy; Tracy Corrigan, Chief Strategy Officer; Nikki Waller, Live Journalism; Frank Filippo, Print Products & Services; Fast-forward more than two cen- We the Judges or We the Subjects. the greatest political privilege that Stephen Wisnefski, Professional News; Steve Grycuk, Customer Service; turies, and We the People’s civic il- Citizenship is not a spectator was ever accorded to the human Carla Zanoni, Audience & Analytics Kristin Heitmann, Chief Commercial Officer; literacy is staggering. sport. “The only title in our democ- race.” Nancy McNeill, Corporate Sales; Gerard Baker, Editor at Large Josh Stinchcomb, Advertising Sales; Seventy-one percent of Americans racy superior to that of president is That privilege must never be Paul A. Gigot, Editor of the Editorial Page; Suzi Watford, Chief Marketing Officer; can’t identify the Constitution as the the title of citizen,” said Justice taken for granted. We the People Daniel Henninger, Deputy Editor, Editorial Page Jonathan Wright, International supreme law of the land, according Louis Brandeis. Our Constitution is are—and will remain—the world’s WALL STREET JOURNAL MANAGEMENT: DJ Media Group: Almar Latour, Publisher Joseph B. Vincent, Operations; Professional Information Business: Christopher to a 2012 Xavier University study. an exquisite charter of freedom, but oldest constitutional republic. If we Larry L. Hoffman, Production Lloyd, Head; Ingrid Verschuren, Deputy Head Ten percent of U.S. college gradu- freedom requires patriots, not pass- can keep it.

EDITORIAL AND CORPORATE HEADQUARTERS: ates think Judith Sheindlin (a k a ersby. It demands fierce defenders, 1211 Avenue of the Americas, New York, N.Y., 10036 “Judge Judy”) sits on the Supreme not feeble bystanders. Mr. Willett is a judge on the Fifth Telephone 1-800-DOWJONES Court, according to a 2015 American Let me introduce you to a tena- U.S. Circuit Court of Appeals. A20 | Monday, September 17, 2018 THE WALL STREET JOURNAL. WORLD NEWS Saudi Prince Asserts Control Over Clerics

BY MICHAEL AMON holiest cities of Mecca and AND SUMMER SAID Medina—into a center of a more moderate form of Islam. DUBAI—Saudi authorities Saudi authorities have are seeking the death penalty sought in part to remake the for three prominent clerics, country through prosecutions. rights activists and a govern- Prosecutors are seeking the ment official say, testing the death penalty for several ac- unwritten code that has kept tivists who campaigned for the kingdom’s rulers in power. minority Shia Muslim rights; Crown Prince Mohammed activists who campaigned for bin Salman and his father, women’s right to drive and King Salman, have jailed activ- other freedoms have been ists, businessmen and govern- jailed; and dozens of business- ment officials as part of their men and government officials efforts to reshape Saudi soci- remain detained on undis- ety and economics. But Saudi closed charges 10 months after clerics have long been a power the start of the corruption unto themselves, with fame crackdown. and influence beyond that of “Since MBS could well be in others caught up in recent power for 50 years, there is a crackdowns. strong case for pushing The jailed clerics are among through with the most contro- Saudi Arabia’s best-known and versial changes now, before most popular Sunni Muslim MBS assumes the throne and religious figures: Salman Al- must accept full blame,” said Odah, who has more than 14 Jim Krane, a Middle East fel- million Twitter followers; low at Rice University’s Baker Awad al-Qarni, a popular and Institute, using a common

outspoken cleric; and Ali Alo- ALEXEI DRUZHININ/TASS/ZUMA PRESS nickname for the crown mari, a TV preacher. Crown Prince Mohammed is reshaping Saudi society and the economy. With the prosecution of three clerics, he is taking a risky new step. prince. They were arrested a year Mr. Odah, 61 years old, was ago in a roundup of imams verdict or punishment, if any. which clerics have significant senior fellow at Georgetown once a hard-core Islamist who with large followings for not The senior official denied influence over public opinion. University, called the charges led the antimonarchy “Islamic openly supporting the govern- the men were originally ar- With the trials, Prince Mo- absurd. Awakening” movement in the ment’s pressure campaign rested over their views on Qa- hammad is putting the clerics “They don’t have any rules, 1990s, which criticized Saudi against Qatar, activists said. tar. The men have access to at- “on notice that the rules have they broke all traditions of au- Arabia’s decision to allow the They are now facing trials torneys and the right to now changed,” said Ali Shi- thority, religion, politics, cul- U.S. military into the country in a national-security court on appeal, the official said. habi, founder of the Arabia ture and everything in the to protect it from a potential charges that include conspir- The prosecutions are Foundation, a Washington country so we really don’t Iraqi invasion. He went to ing against the monarchy and among the riskiest pieces of Two of three popular Sunni think tank that often supports know what is next,” he said. prison for five years and em- supporting terrorism, and 33-year-old Prince Moham- Muslim clerics facing the death the Saudi government. Clerics haven’t always sup- braced more moderate views prosecutors are seeking the med’s efforts to consolidate penalty: Ali Alomari, left; and Mr. Shihabi said he doubted ported Prince Mohammed as after his release. death penalty, said relatives, power since June 2017, when Salman Al-Odah, right the government would follow he pursued changes that in- Mr. Alomari faces 30 activists and the official. he pushed aside another royal through and execute clerics. clude allowing women to charges related to terrorism, A senior Saudi official said to become crown prince. “This is messaging more than drive, fashioned a more mus- including allegedly forming a the clerics are “under investiga- Moving against clerics alliance with imams who ad- substance,” he said. cular foreign policy, and terrorist youth organization, tion for constituting a danger could turn public opinion here to a strain of Islam Mr. Odah faces 37 charges moved to diversify the oil-de- according to rights activists. to society because they belong against the rulers and known as Wahabbism. for alleged crimes including pendent economy by making According to rights activ- to terrorist organizations.” strengthen elements of the The partnership has pro- spreading discord, incitement Saudi Arabia more attractive ists, Mr. Qarni is charged with The senior official said Saudi royal family who oppose them. vided largely stable leadership against the ruler, and being to foreign investment and supporting the Muslim Broth- prosecutors and judges were in- The House of Saud has re- and resulted in one of the active in the Muslim Brother- tourism. erhood and other groups in dependent and that the crown mained the ruling family for world’s most religiously con- hood, his son said. He has also sought to turn Saudi Arabia designated as prince would play no role in a over eight decades through an servative societies—one in His son, Abdullah Odah, a Saudi Arabia—home to Islam’s terrorist organizations. American Is Fatally Stabbed in West Bank BY FELICIA SCHWARTZ

TEL AVIV—A Palestinian teenager fatally stabbed a 45- year-old Israeli-American man in the West Bank, U.S. and Is- raeli officials said. The man, Ari Fuld, was a right-wing pro-Israel activist who had a following on social media. He was killed on Sunday at a shopping mall near the Gush Etzion junction that has been the site of similar incidents in recent years. The Israeli military described the stabbing—the second such incident this summer—as an act of terror. No group claimed responsibility for the attack, and there were

SYRIAN ARAB NEWS AGENCY no signs that it was related to A photo released on Saturday by the state-run Syrian Arab News Agency is said to show Syrian air defense responding to what state media said were Israeli missiles. Mr. Fuld’s pro-Israel postings. The attack comes amid heightened tensions between Israelis and Palestinians. Thou- Israel Strikes Iranian Arms Shipment in Syria sands of Palestinians in Gaza have been demonstrating at BY SUNE ENGEL RASMUSSEN militias loyal to Tehran to en- the border with Israel to call Rebel Remnants tants are still able to mount an marily Russia and Turkey, Idlib is trench near the Golan Heights. for the right to return each Israeli missiles are sus- insurgency, Mr. Assad’s forces one of the last opportunities to In its largest-yet operation week, in protests that have of- pected to have struck an Ira- Hang on in North can claim a near-complete vic- deepen or preserve their influ- inside Syria, Israeli warplanes ten turned violent. Israeli nian arms shipment at Damas- tory against the armed opposi- ence in Syria as it moves into a in May made dozens of strikes forces have responded with live cus airport late Saturday, the tion if they capture Idlib. postwar phase. against Iranian infrastructure fire and have killed more than latest in a string of attacks Idlib is the last major rebel Control of Idlib province, United Nations officials warn after an Iranian unit in Syria 150 Palestinians since March. aimed at eroding Tehran’s mil- stronghold in Syria, and the fight which lies on the border with an offensive in Idlib could result fired about 20 short-range ar- Mr. Fuld, who was married itary foothold in Syria. for the northwestern province Turkey, allows access to the M5 in the worst humanitarian disas- tillery rockets that Israel said with four children, lived with The strikes play into a will likely be the last large battle highway, a vital economic thor- ter of the 21st century. were either shot down or fell his family in Efrat, a settle- broader conflict unfolding in of the country's more than oughfare that runs all the way Idlib is home to an estimated short of a nearby military ment in the West Bank. He the Middle East. The fight seven-year war. from the Turkish border through three million people, nearly half base. was also a reserve member of against Islamic State militants, President Bashar al-Assad the main Syrian cities of Aleppo of whom have already been dis- Rising hostilities between the Israeli military. who have been driven from has vowed to recapture the en- and Damascus, and links to Lat- placed from elsewhere in the the two long-term foes have Videos of the scene circu- their strongholds in Syria and tire country, and although small akia on the Mediterranean coast. country. exposed fault lines in the rela- lated on social media show that Iraq, has given way to a jos- pockets of Islamic State mili- For international powers, pri- —Nazih Osseiran tionship between Russia and Mr. Fuld chased and shot at his tling for power among foreign Iran. Both countries have attacker before collapsing. and regional actors. fought on the side of the Syr- An Israeli police spokesman Israel has watched with targeted a warehouse and a re- scribed as the airport being that his country would ian regime, but Moscow is ea- identified the attacker as Khalil concern as Iran has en- cently arrived arms shipment hit. The were no immediate broaden its military campaign ger to maintain ties with Israel Jabarin, 17 years old, from Yatta, trenched itself deeper in Syria from Iran to the Lebanese Hez- reports of casualties. against Iran. Israel has ac- and enlist its support for an a Palestinian city south of He- on the back of its support for bollah militia, according to the The Israeli military, in accused Iran of seeking to estab- enlarged footprint in the Mid- bron. He was injured and evacu- the regime of President Bashar Syrian Observatory for Human cordance with its usual prac- lish a land corridor, allowing it dle East that won’t shrink ated to a hospital in Jerusalem. al-Assad, which has reclaimed Rights, a U.K.-based monitoring tice, declined to comment on to transport personnel and oncethewarisover. Israel’s foreign ministry most of the territory once held group, which said the launched individual military actions. equipment from Tehran to the Russia has sought to assure says more than 60 people have by antigovernment rebels. The missiles were likely Israeli. But Israel’s Prime Minister Mediterranean through Iraq Israel that it wants only Syrian been killed in attacks by Pales- armed opposition is now hun- According to a news report Benjamin Netanyahu said Sun- and Syria. forces fighting in the country’s tinians since September 2015, kered down in its final major by the Israeli Hadashot TV on day at the beginning of a cabi- Israeli officials have said southwest. It has made sure including stabbings, shootings bastion in the northwestern Sunday morning, the strike net meeting that Israel would that Israel has conducted more that Iranian-backed troops are and car rammings. That count Idlib province where Syrian also hit an Iranian cargo plane continue to enforce its red than 200 strikes, using about no closer than 85 kilometers includes two visiting Ameri- government forces have loaded with weapons, which lines, without specifying what 800 bombs, against Iranian (about 53 miles) from the Is- cans and a British student. In amassed in preparation for had recently landed at Damas- they are. He has previously and Hezbollah targets in Syria raeli border, Russia’s special July, a 31-year-old Israeli man what could be the last major cus International Airport from said Israel won’t allow Iran to since the beginning of 2017. envoy to Syria, Alexander was stabbed and killed in his showdown of the war. Tehran. establish a military presence The Syrian Observatory for Lavrentiev has said, according home by a Palestinian attacker. Over the past year, Israel The state-run Syrian Arab in Syria. Human Rights said Saturday’s to Russian news media. Hosam Badran, a leader of has sharply increased air- News Agency reported that “Israel is constantly work- attacks were the third time Is- Moscow has even tried to Gaza ruler Hamas, praised the strikes against Iranian assets the country’s air defenses re- ing to prevent our enemies rael struck Syria this month. open diplomatic channels be- latest attack and said it showed in Syria, striking targets from pelled some of the incoming from arming themselves with Tensions between Israel and tween Tehran and Tel Aviv to Palestinians believe in resis- its own border area to the far missiles, which it said were advanced weaponry,” he said. Iran have grown as the Assad defuse tensions, The Wall tance to deter Israel’s occupa- eastern part of the country to fired from Israel. The most recent strikes fol- regime, backed by Tehran, has Street Journal reported in May. tion of the West Bank and Gaza. neighborhoods near the capi- People in Damascus posted low warnings earlier this pushed to clear rebel-held ar- —Felicia Schwartz —Abu Bakr Bashir tal, Damascus. footage on social media show- month from Israel’s defense eas near the border with Israel. and Nazih Osseiran in Gaza City Saturday’s strike seemingly ing explosions that they de- minister, Avigdor Lieberman, Israel has said it won’t allow contributed to this article. contributed to this article. TECHNOLOGY: HOT IPO FUELS HOPE FOR EUROPE’S STARTUP SCENE B5 BUSINESS&FINANCE

Last Week: S&P 2904.98 À 1.16% S&P FIN g 0.35% S&P IT À 1.83% DJ TRANS À 1.97% WSJ $ IDX g 0.42% LIBOR 3M 2.337 NIKKEI 23094.67 À 3.53% See more at WSJMarkets.com Smaller Stocks Power the Market Salesforce

Tech sector is key, but tors and analysts say: Smaller- profile leaders such as Ama- portfolio manager and chief quintiles have risen 13% and Founder to rally is also supported company stocks have climbed zon.com Inc., Google parent equity strategist for Nuveen 12%, respectively, this year, more than their larger coun- Alphabet Inc. or Netflix Inc. Asset Management. “This is a beating the 8.7% advance by by wide breadth; terparts this year. When all of falter, investors say. More than broad market move. It’s a good the largest companies in the Buy Time risers lead decliners the companies in the S&P 500 nine years into the bull-market thing. It’s healthy.” index, Strategas data show. are assigned an equal weight- run, many investors are watch- Among the quiet winners in Similarly, although the big- ing, the index is still trading ing for hints of a downturn. the current market are midsize gest 10 companies in the S&P Magazine BY CORRIE DRIEBUSCH near records. And rising stocks Some stumbles over the sum- companies. When divided into 500 at the start of the year BY JEFFREY A. TRACHTENBERG have outnumbered decliners mer by popular tech stocks, five groups based on market have gone on to contribute Technology giants get most this year. along with recent declines in value, the second and third roughly 45.5% of the broader Time magazine will have a of the credit for driving this At the same time, strong emerging markets, have stoked quintiles of the Russell 1000 index’s 2018 total return new home. year’s stock-market gains, but earnings growth has cooled fears of a reckoning, but U.S. index are outperforming the through Friday’s close, some Nearly eight months after the quiet strength of smaller the lofty valuations that wor- stocks appear resilient so far. top quintile that houses the investors and analysts note Meredith Corp. completed its companies is a reason to keep ried investors at the start of “Bull markets eventually biggest stocks, according to that it isn’t uncommon for the purchase of Time Inc., the betting on U.S. stocks. 2018. end, and typically by the time data compiled by Strategas Se- top companies in the index to publisher has agreed to sell Signs of stock-market These factors bode well for you get to the peak, breadth is curities LLC. Shares of compa- provide outsize returns. In the Time magazine for $190 mil- breadth are everywhere, inves- the stock market if its high- gone,” said Bob Doll, senior nies in the second and third PleaseturntopageB2 lion to Marc Benioff, co- founder of Salesforce.com, and his wife, Lynne Benioff. The proposed sale is ex- A Startup Is Beating Uber in the Race to Win Africa pected to close within 30 days. Nike Shows The Benioffs are buying Time as individuals; the agreement is unrelated to Salesforce.com, Boycotts where Mr. Benioff serves as chairman and co-chief executive. In an interview, Mr. Benioff Just Don’t said, “We’re investing in a company with tremendous impact on the world, one that is Do It also an incredibly strong busi- BY KHADEEJA SAFDAR ness. That’s what we’re looking for when we invest as a family.” The Nike Inc. ad featuring The Benioffs are optimistic NFL quarterback-turned-activ- about Time’s large audience and ist Colin Kaepernick divided growing video business. “The American shoe buyers, with power of Time is its unique some calling for a boycott of story telling of the people and the company and others vow- issues that affect us all and con- ing to buy more of its nect us all,” said Mrs. Benioff. sneakers. Still, the couple will be tak- Odds are the activism won’t ing over a publication whose last. business has been hammered Companies from Nordstrom from ongoing declines in print Inc. to L.L. Bean have faced advertising and newsstand controversies that prompted a sales. The Benioffs said they segment of consumers to boy- won’t have a role in day-to-day cott or stock up on their prod- operations of the magazine or ucts. But research suggests the journalistic decisions. Mr. Be- activism fades quickly, and nioff said the family doesn’t when it does, shoppers tend to plan to acquire any other mag- revert to their previous behav- azine titles from Meredith. ior, leaving the companies no The deal is a much-needed worse or better off than lift for Meredith, the publisher before. of such titles as People, Better After Mr. Kaepernick’s in- Homes & Gardens and the Mag- volvement in Nike’s latest ad nolia Journal. Meredith put four campaign was revealed on La- Time Inc. publications up for bor Day, investors sold shares, sale in March—Fortune, Time, critics torched their shoes and Money and Sports Illustrated. supporters raced to stores. The The sales process has

former Super Bowl quarter- EDWARD ECHWALU FOR THE WALLdragged STREET JOURNAL on, reflecting the gap back became a central figure in BUILT FOR SPEED: Uber Technologies dwarfs Taxify OU in terms of valuation, but thelatteristhe more popular ride-hailing option for between what Meredith be- a political firestorm when in on-the-go Africans. That is in part because Taxify was first to support motorbikes, which locals favor for cutting through traffic. B4 PleaseturntopageB4 PleaseturntopageB2

Comparison Shopping INSIDE How Nike customers compare Home Buying Goes Algorithmic with the adult U.S. population BY RYAN DEZEMBER don’t have time to go to thou- properties in Texas in 2010 at Percentage of customers sands of showings. the depths of the housing who are... To help Wall Street buy tens Enter Mr. Kay’s computers. crash. He used machine learn- 18-34 years old of thousands of houses, Martin On any given day, there are ing to mine mountains of home listings for those that might Nike 44% Kay and his colleagues taught tens of thousands of properties a computer to spot a sunny available for sale in each of the attract the type of tenants he U.S. 32 kitchen. booming markets where these wanted. For Mr. Kay and like- Ever since last decade’s investors are active, including minded investors, that typi- Conservative/very conservative foreclosure crisis, institutional Atlanta, Charlotte, N.C., and cally meant families seeking 23 investors have been gobbling Nashville, Tenn. They have suburban lifestyles. 34 up single-family houses and many places to look: the multi- “Going from 40,000 houses becoming landlords. They have ple listing services that Real- to 12 is a machine problem,” he DISTILLERS LEHMAN CFO White criteria just like individual tors compile, online sellers, said. “Going from 12 to one is a 46 buyers: three or more bed- lists of nonperforming bank human problem.” Rivals no- TRADE SHOTS CHANGED LIFE rooms, two baths, a garage, loans and foreclosure auctions. ticed Mr. Kay’s knack for snap- 65 good schools, low crime, high Mr. Kay, who had built data ping up plum rental properties WITH MILITARY AFTER CRISIS Note: Data for people 18 and older rental yields—and bright, sun- platforms for the U.S. Energy and some asked for help. The Source: YouGov lit kitchens. Unlike them, in- Department and ConocoPhil- company he and his partners LIQUOR, B3 WALL STREET, B9 THE WALL STREET JOURNAL. vestors buy in volume and lips, started buying rental PleaseturntopageB2

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Source: Morningstar as of 6/30/18. Based on funds in the Morningstar Mid-Cap Blend Category (oldest share class). Rankings are based on returns after taxes that are net of all fees, maximum federal tax rate (39.6%) and applicable sales loads. Rankings reflecting lower tax rates may have resulted in less favorable results for exchange traded funds due to their tax efficiency. Universe: 114 funds for 10 years, 136 funds for 5 years, and 152 funds for 3 years. MDY’s 1 year peer group percentile is 25% (44 of 182 funds). Past performance is no guarantee of future results. ETFs trade like stocks, are subject to investment risk, fluctuate in market value and may trade at prices above or below the ETF’s net asset value. ETF shares may not readily trade in all market conditions. Brokerage commissions and ETF expenses will reduce returns. Investments in mid-sized companies may involve greater risks than those in larger, better known companies, but may be less volatile than investments in smaller companies. ©2018 Morningstar, Inc. All rights reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete, or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. SPDR® S&P MidCap 400® ETF Trust, a unit investment trust, is listed on NYSE Arca, Inc. SPDR®,S&P and S&P MidCap 400 are registered trademarks of Standard & Poor’s Financial Services LLC, a division of S&P Global (“S&P”) and have been licensed for use by State Street Corporation. No financial product offered by State Street or its affiliates is sponsored, endorsed, sold or promoted by S&P. ALPS Distributors, Inc. (fund distributor); State Street Global Advisors Funds Distributors, LLC (marketing agent). State Street Global Advisors and its affiliates have not taken into consideration the circumstances of any particular investor in producing this material and are not making an investment recommendation or acting in fiduciary capacity in connection with the provision of the information contained herein. Before investing, consider the funds’ investment objectives, risks, charges and expenses. To obtain a prospectus or summary prospectus, which contains this and other information, call 1.866.787.2257 or visit www.spdrs.com. Read it carefully.

2170636.1.1.NA.RTL Not FDIC Insured • No Bank Guarantee • May Lose Value B2 | Monday, September 17, 2018 **** THE WALL STREET JOURNAL. INDEX TO BUSINESSES BUSINESS & FINANCE These indexes cite notable references to most parent companies and businesspeople in today’s edition. Articles on regional page inserts aren’t cited in these indexes.

A F Rockbridge Growth Adidas...... B2 Fabulous System...... A6 Equity...... B5 Adyen...... B5 Facebook...... B5 Rocket Internet...... B5 Alphabet...... R8 Fitbit...... R8 Royal Dutch Shell...... B3 Amazon.com...... A1 Foot Locker...... B2 S Anschutz Entertainment G Salesforce...... B1 Group...... B5 Samsung Electronics..R8 Apple...... B10 Geisinger...... R5 GrabTaxi Holdings PteB4 SBH Health System...R5 B Sky...... B6 Guangzhou Xiaopeng Stadium Goods...... B2 Bayerische Motoren Motors Technology.B10 Werke...... B10 H T Best Buy...... B10 Taxify...... B4 Healthify...... R5 BioPoly...... R7 Tesla...... B10 HelloFresh...... B5 C Time...... B1 Cartiva...... R7 K Toyota Motor...... B4 Circulation...... R5 Kaiser Permanente.....R5 TPG...... B5 Cirrus Logic...... B10 Kia Motors...... B10 21st Century Fox...... B6 Comcast...... B6 L U D Live Nation Uber Technologies.B4,B5 Daimler...... B4 Entertainment...... B5 Under Armour...... B2 Delivery Hero...... B5 L.L. Bean...... B1 UnitedHealth Group...R5 Dell Technologies...... B10 M V DexCom...... R8 VMware...... B10 Diageo...... B3 Mazda Motor...... B10 Didi Chuxing Technology Meredith...... B1 W ...... B4 Microsoft...... B10 Walt Disney...... B6 Domino's Pizza...... A1 N-R WellCare Health Plans DP Eurasia...... A12 Netflix...... B5 ...... R5 Duke Energy...... A2 Nike...... B1 Wells Fargo...... B10 E NIO...... B10 Wright Medical Group ...... R7 EMC...... B10 NiScource...... A3 Entera Technology...... B2 Nissan Motor...... R4 Z Exxon Mobil...... B3 Nordstrom...... B1 Zalando...... B5

INDEX TO PEOPLE RICHARD B. LEVINE/NEWSCOM/ZUMA PRESS The shoemaker’s campaign featuring athlete activist Colin Kaepernick generated buzz but appears to have had little effect on sales.

A Flahive, Drew...... B2 Rodriguez, Myra...... R6 was a little bit of an uptick in Mentions of #NikeBoycott on said. “People who say they’ve Anschutz, Philip...... B5 G Roig, Marc...... R6 Rosenberg, Linda...... R6 sales.” Foot Locker said the Twitter and Instagram peaked boycotted a product might not Anthony, Bruno...... R6 Gilbert, Dan...... B5 Nike Shows S response from the shoe re- one day after Labor Day with a be in the market for buying B H tailer’s customers “has been tally of more than 203,000 and that product anyway.” Sayer, Kevin...... R8 Bean, Linda...... B2 Hamidi, Shima...... R2 Schulze, Jeff...... B2 largely positive.” then fell to fewer than 1,000 a Last year, shoppers prom- Beckerman, Joel...... R4 Harty, Tom...... B4 The Limits Schwartz, Betsy...... R6 Nike didn’t respond to sev- week later, according to data ised to boycott L.L. Bean after Benioff, Lynne...... B1 Hooper, Kristina...... B2 Shockney, Lillie...... R6 eral requests for comment. from Brandwatch, a social-me- the company’s heiress Linda Benioff, Marc...... B1 J Brenner, Jeffrey...... R5 Shrewsberry, John....B10 Data from a few days later dia monitoring company. Nike Bean was revealed to be a Jaffe, DJ...... R6 Steigman, A.J...... B2 Of Boycotts C show that the sales pop didn’t shares, which had fallen about Trump donor. The same year, K Stengel, Richard...... B4 Cross, Shannon...... B10 T last long. Online sales jumped 3% the day after the ad was supporters of Mr. Trump Kaepernick, Colin...... B1 ContinuedfrompageB1 for two days, according to re- first revealed, recovered all called for a boycott of Nord- D Kay, Martin...... B1 Tebbs, Tyler...... B6 Does, Pieter van der..B5 King, Brayden...... B2 Tom, Shariann...... R6 2016 he began kneeling on the search firm Edison Trends, their losses and Thursday hit a strom after the department Doll, Bob...... B1 L Treasure, Julian...... R4 field during the national an- which analyzed email receipts record intraday high of $83.90. store dropped Ivanka Trump’s from three million users. Sales fashion line. Nordstrom has E Lehmann, Keri...... R6 V them to call attention to racial Earley, Peter...... R6 Loeswick, Tom...... R6 van Oranje, Constantijn injustice. Some criticized his rose 31% from Sunday through had three consecutive quarters Edwards, Julie...... R6 M-R ...... B5 protest as unpatriotic. Tuesday, topping the 17% in- The company has of comparable sales growth. Einhorn, David...... B9 Magnan, Sanne...... R5 W Kenyattia Hackworth, a 25- crease in the same period a L.L. Bean doesn’t report sales F Montella, Erin...... B9 Willems Van Dijk, Julie year-old track athlete in Mo- year earlier, but by the end of a history of making figures as it is privately held. Feinberg, Andrea...... R5 Mukkamala, ...... R5 bile, Ala., said she went to buy the week they declined 18% ads that court Nike has a history of mak- Felsenthal, Edward.....B4 Ramakrishna...... R8 Wilson, Hamilton...... R6 some Nike gear right after the compared with the peak on ing ads that court controversy, ad was unveiled and then Tuesday, returning to around controversy. including one in 1995 that fea- made a second trip to a Nike the same level they were be- tured an openly gay, HIV-posi- “Everyone’s flocking to the store later in the week with fore the ad. tive runner. U.S.,” said Kristina Hooper, some friends, who also pur- Similarly, calls for a boycott In recent years, Nike has Smaller chief global market strategist chased clothes and sneakers. came quickly after the ad ap- Boycotts generate buzz and been battling with Adidas AG for Invesco. “Investors view “I’m going to wear Nike even peared. Some people defaced can sometimes cause companies and Under Armour Inc. for the small or midcap names with more now,” she said. “I want their Nike gear. A few schools, to make concessions if the neg- attention of young shoppers, Stocks more U.S. exposure as a safe to show my support.” including College of the Ozarks ative attention poses a reputa- who tend to be more aligned place where they wouldn’t For a few days, the ad gen- and Truett McConnell Univer- tional risk, but there is little ev- with Mr. Kaepernick’s cause. In have to deal with the trade erated more demand for Nike sity, vowed to cut ties with idence to suggest that they have total, 44% of U.S. adults who Lead Way war.” products at Stadium Goods, Nike. President Trump wrote on a meaningful impact on sales, have bought Nike apparel or So far, the continuing trade which sells collectible sneakers Twitter, “Just like the NFL, said Brayden King, a Northwest- sneakers in the past three ContinuedfrompageB1 dispute hasn’t taken a big bite through its website and a store whose ratings have gone WAY ern University professor of months fall between the ages past decade, the biggest 10 out of corporate earnings, a in New York, Chief Executive DOWN, Nike is getting abso- management who studied the of 18 and 34, according to You- names have contributed an av- metric many investors say is John McPheters said. “The lutely killed with anger and boy- impact of more than 140 boy- Gov. The survey firm’s re- erage 30% to the broader in- an important indicator of fu- campaign resonated with a cotts. I wonder if they had any cotts from 1990 to 2005. search shows that recent Nike dex’s annual return, according ture stock-market returns. As piece of our audience,” he said. idea that it would be this way?” “Consumers aren’t as con- customers are also more ethni- to Jeff Schulze, investment of Sept. 7, more than 80% of “I wouldn’t say it’s made a The reaction, however, sistent with their behaviors cally diverse than the coun- strategist at ClearBridge In- companies in the S&P 500 had massive difference, but there cooled down a few days later. and beliefs as we think,” he try’s population at large. vestments. In 2015, they con- reported quarterly earnings tributed nearly 80%, he said. that beat estimates, the high- “It’s nowhere close to being est percentage since FactSet a potential danger sign for in- began tracking the data vestors to be concerned about roughly 10 years ago. Earnings High-Tech a market top,” said Mr. Schulze for companies in the S&P 500 of the current concentration. increased 25% in the second Indeed, even without the 10 quarter, while their smaller- Home Buys biggest contributors—which in- company counterparts in the clude Amazon, up 68%—the Russell 2000 posted a 48% S&P 500 would be trading jump, FactSet data show. Catch On higher. The equal-weighted in- The strong corporate per- dex, which gives the same formance appears set to con- Continuedfromthepriorpage weight to both the smallest and tinue. The estimated earnings- created to work with them, En- largest companies in the index, growth rate for the S&P 500 is tera Technology LLC,isnow reached a record in late Au- 20% for the third quarter, one of several racing to apply gust—the same day as its more while smaller companies are sophisticated technology to closely followed counterpart. expected to do even better Wall Street’s house hunt. And the NYSE advance-de- with a 36% increase, according Progress Residential, which cline line, a popular indicator to FactSet. These companies’ has built the third-largest pool of market breadth that mea- earnings are growing at a of rental homes in the U.S., sures the net companies rising faster rate than their stock says its proprietary technology each day since the start of the prices, too, quelling valuation can find properties fitting its year, has climbed, a sign of ro- concerns. The 12-month price/ investment criteria within bust participation in the rally. earnings ratio of the Russell minutes of their listing. Fol-

One reason for the broad 2000 on a forward-looking ba- lowing the housing crash, Am- DANIEL KRAMER FOR THE WALL STREET JOURNAL gains: Economic data and sis is 22.2 as of Sept. 13, down herst Residential, which has Martin Kay’s Entera Technology attempts to catalog about 850 characteristics for each property. earnings growth have been from 24.2 at the start of the purchased and manages about solid across a swath of indus- year, while the S&P 500’s ratio 20,000 rental houses, adapted tries. Another: Many investors, is down to 16.8 from 18.1. its existing system for valuing Photo to Computer: ing photos. It also pores over tattoo parlor signals a neigh- worried about trade disputes, All 11 sectors of the S&P mortgage-backed securities to written property descriptions borhood on the upswing. It are betting on companies with 500 are expected to report churn out acquisition leads, es- ‘This Is a Kitchen, for keywords. When more de- probably does if exercise stu- a greater share of domestic higher earnings in the current timate renovation costs and This Is a Kitchen’ tailed information is available, dios and coffee shops are earnings. Those firms are typi- quarter, with seven sectors on predict rental yields. A.J. like the location of the kitchen nearby, Mr. Kay said. cally smaller than their multi- track for double-digit growth, Steigman, a former child chess within, the software sizes up Entera handles demographic national peers and are receiv- according to FactSet. And the champion and investment To determine whether a the house’s orientation and data delicately to avoid violating more benefits from the leaders aren’t technology com- banker, won funding and a house has a sunny kitchen, En- looks for any obvious obstruc- ing the 1968 Fair Housing Act, corporate tax cut. panies, but energy and finan- prominent business-school tera Technology LLC first tions to light entering, like a big which prohibits discrimination The Russell 2000, the cial firms. “Earnings growth is competition this spring for a taught a computer what a tree outside or a building next by lenders, sellers and landlords benchmark index for smaller- broad. Lots of companies, lots plan to use pattern-recognition kitchen looks like by feeding it door. Want a chef’s kitchen? based on race, religion, sex, company stocks, has climbed of industries are participating, software to identify mispriced tens of thousands of photos of The computer will hunt for mul- family status and disability. It 12% in 2018, eclipsing the 8.7% and that’s most important,” homes. indoor cooking spaces and tell- tiple sinks or a second refriger- applies also to real-estate rise by the S&P 500. said Nuveen’s Mr. Doll. “The financial crisis created ing it, “This is a kitchen, this is ator and possibly compare the agents and others who facili- a catalyst for a lot of institu- a kitchen, this is a kitchen,” En- square footage to that of the tate housing deals. tional capital and minds to tera Chief Executive Martin Kay rest of the house, Mr. Kay said. Once an investor chooses a Broad Gains tackle the opportunity, but said. The same was done for Several factors go into pre- house, humans take over: En- technology is what really brightness and its sources: win- dicting financial returns and fu- tera dispatches a representative The second and third quintiles of It is not unusual for the biggest transformed this into a busi- dows and light fixtures. ture value, including proximity to double-check the property’s the Russell 1000 have posted 10 companies in the S&P 500 to ness,” said Drew Flahive, Am- Once the computer got the to a Starbucks, yoga studio or condition and complete the bigger gains this year than the be responsible for much of the herst Residential’s president. picture, it started scanning list- tattoo parlor—and whether a sale. largest companies in the index. index’s yearly rise.* In Amherst’s Manhattan of- 15% 100% fice, employees search screens showing available homes in tine a few years ago, execu- ties Inc. and Colony American aspects and uses algorithms to 75 each ZIP Code. At the click of a tives said. Homes Inc., which are now predict future value. The mere 10 mouse, the projected rental For Entera, the technology part of American Homes 4 act of shopping on Entera’s yields pops up above each became the business. Mr. Kay Rent and Invitation Homes platform—including saying no 50 property on a map. The esti- and his partners have been Inc., respectively. Entera con- to some prospects—informs 5 mates arise from a multitude selling the Texas homes they tinues to be among the tech- the artificial intelligence, 25 of inputs, including renovation bought after the crash to fund nology providers to Invitation, which refines its hunt to suit costs, which machine-learning Entera’s transition to a soft- which owns more than 80,000 each investor. “The machine 0 tools constantly adjust to ac- ware company, reasoning that houses. will notice they keep rejecting 0 count for the outcomes of their specialty was big data, Like a dating app, Entera houses on a busy street,” Mr. completed jobs on similar not collecting rent. Plus, their starts by asking clients what Kay said. –5 Russell 1000 market cap quintile –25 properties. Amherst has in- rivals had much more to they want. Besides screening In all, Entera attempts to vested more than $100 million spend, and there is a poten- for easily quantifiable charac- catalog about 850 characteris- 1st 2nd 3rd 4th 5th 2008 ’10 ’12 ’14 ’16 ’18† in the system, which has tially huge market of smaller teristics like age, number of tics for each property as well *Chart measures the percentage contribution to the S&P 500’s total return by the ten biggest helped the firm pin renovation investors for the company’s rooms, square footage, school as thousands of other data companies in the index at the start of the year †Through Wednesday estimates to within about 5% services. district, property taxes and points detailing the neighbor- Sources: Strategas (quintiles); ClearBridge Investments (S&P 500) of actual costs, down from the Early customers included flood-zone status, it also at- hood, the home’s location and THE WALL STREET JOURNAL. 20% overruns that were rou- American Residential Proper- tempts to measure qualitative financial information. THE WALL STREET JOURNAL. Monday, September 17, 2018 | B3 BUSINESS NEWS

Shell Plans Mixing Drinks Laws on which alcoholic drinks can be sold in grocery stores vary by state. Targets on Beer only Beer and wine Beer, wine and spirits No alcohol Maine Wash. N.H. Methane Mont. N.D. Minn. Vt. Ore. W.Va. Idaho S.D. N.Y. Emissions Wyo. Wis. Mich. Iowa Pa. Nev. Neb. Ohio BY SARAH KENT Utah Ill. Ind. Colo. Va. R.I. Calif. Kan. Mo. Ky. N.C. Conn. LONDON—Royal Dutch Tenn. Okla. Shell PLC said it will announce Ariz. N.M. Ark. S.C. Mass. plans to lay out targets to man- Miss. Ala. Ga. N.J. age its emissions of the green- La. Texas Del. house gas methane Monday, Alaska Fla. Md. joining a handful of major oil Hawaii companies that have made sim- D.C. ilar pledges this year.

The British-Dutch oil giant GERALD HERBERT/ASSOCIATED PRESS Note: Local laws and other requirements may restrict sales of certain alcoholic beverages. said it will disclose objectives Sales of liquor in grocery stores are legal in far fewer states than they are for beer. Source: National Alcohol Beverage Control Association THE WALL STREET JOURNAL. to bring down methane emissions related to oil and natural- gas extraction and transportation. Distillers Push for Space at Bases Big oil companies such as Shell and Exxon Mobil Corp. have invested heavily in natural A bid to allow sale of nated against, that sends a like diapers and fresh vegeta- boosted by a return to TV ad- not what you drink, it’s how gas in recent years and increas- very negative image,” said bles from shelves; spirits vertising in the mid-1990s and much you drink.” ingly touted the fuel as a core liquor at military Frank Coleman, a senior vice aren’t sold in all grocery the liquor industry’s increased Negative perceptions about tool to combat climate change, commissaries means president at the Distilled Spir- stores; and the move is in line efforts to woo women. spirits in particular still exist. because it produces fewer its Council, a trade body that with its strategy to make alco- Spirits makers have com- Earlier this month, the emissions than coal, the fuel it fighting perceptions counts Johnnie Walker owner hol less glamorous. A 2015 plained for years that beer North American Interfrater- frequently competes with in Diageo PLC and Absolut study from Western Washing- gets preferential treatment nity Conference, a trade body electricity production. BY SAABIRA CHAUDHURI owner Pernod Ricard SA ton University shows that mil- stemming from its reputation for male fraternities, voted to But methane, the main com- among its ranks. itary service appears to en- as the alcoholic beverage of ban what it described as “hard ponent of natural gas, is a po- Spirits companies have Members of the House courage young men to moderation, which they argue alcohol” at chapter facilities tent greenhouse gas, and large fought for decades to convince Armed Services Committee consume more alcohol. The is undeserved. and events, saying the move quantities currently leak into consumers and regulators that asked the defense secretary spirits trade body argues the After Prohibition ended in would make campuses safer the atmosphere from wells, liquor should be treated the for a study on adding liquor to decision was misguided be- 1933, beer regained its legal and prevent alcohol abuse. pipelines, storage tanks and same as beer and wine. Now commissary shelves. The find- cause liquor is available in status months before other al- “While well-intentioned, processing plants. Environmen- they’re taking on the U.S. mili- ings are due this month. grocery stores across 28 states coholic beverages. Alcohol- implementing a policy that talists and other activists have tary. The Pentagon’s ruling is control measures in many bans distilled spirits products seized on these fugitive emis- The Defense Department seen as a setback for spirits states included stores desig- while continuing to permit sions as a problem that must this summer began allowing makers, who have made prog- nated specifically to sell dis- beer and wine is misguided be addressed if companies are military commissaries—the ress in reducing liquor’s asso- Spirits makers have tilled liquor and wine, often and not supported by the sci- going to count on gas as a equivalent of grocery stores ciation with inebriation and complained for years not selling food or cigarettes. ence,” Mr. Coleman said. “bridge fuel” to a cleaner en- on bases—to sell beer and bad behavior. In recent years Beer, however, was made more On military bases, alcohol ergy future. wine for the first time but not distillers have won the right to that beer gets widely available at some gro- can be bought through 122 ex- Shell said it is aiming to vodka, whiskey and other sell liquor on Sundays and of- preferential treatment. cery stores and small markets. changes and 500 convenience limit methane emissions to less types of liquor. The ruling fer in-store tastings in many Today, vestiges of those stores. A small handful of than 0.2% of the total natural sparked an outcry among spir- states. Liquor also is increas- times still hamper the spirits commissaries began selling gasextractedfromanyone its makers who have since lob- ingly available in grocery industry, liquor makers say. Big beer and wine in July on a project. bied lawmakers to ensure stores, helping the industry in some form and that if the spirits companies have to pay trial basis. The Defense De- Currently, Shell has no way their products can be sold in take market share from beer. government wants to deglam- higher taxes than beer or wine- partment plans to gradually of accurately measuring its so- commissaries, too. Spirits reached a 35% share orize alcohol it also shouldn’t makers on alcohol sold. Gro- roll out beer and wine sales to called methane-emission inten- At stake isn’t so much reve- of U.S. alcohol servings last allow sales of beer or wine. cery-store liquor sales are legal most of its 237 commissaries sity across the entire company, nue but reputation. year, up from 27.7% in 2000, The Beer Institute said the in far fewer states than beer. in 13 countries. but for some of its projects it is Military bases account for a according to the Beer Institute, decision was justified because “Unfortunately there was A spokeswoman for the de- as high as 0.8%, the company small slice of liquor sales and a trade body for big brewers. the alcohol content of cocktails this perception that beer was partment said selling some says. spirits are available on bases Beer’s share over this time varies, and is often much soft alcohol and spirits was beer and wine at commissaries The planned targets come at exchanges, akin to depart- dropped to 49.7% from 59.5%. higher than in a standard drink. hard,” said David Culver, chief makes its convenient for “shop- even as the Trump administra- ment stores. But liquor makers The Defense Department’s Brewers have been particu- lobbyist for Distilled Spirits pers to pick up a bottle of wine tion moves to roll back Obama- bristle at what they see as the reasons for banning liquor larly eager to defend their po- Council on the commissary for dinner or a case of beer for era rules aimed at limiting stigma tied to being excluded. sales are multifold: It doesn’t sition at a time when spirits sales issue. “Modern science a weekend cookout with the methane leaks. “If your product is discrimi- want to dislodge essentials are attracting new drinkers, tells us alcohol is alcohol. It’s rest of their groceries.”

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TECHNOLOGY & BUSINESS WSJ.com/Tech Taxify Overtakes Uber in Africa Benioffs to

Startup gains a leg up Buy Time on rival by tailoring its ride-hailing service to Magazine local-market needs ContinuedfrompageB1 lieved the titles were worth, BY ALEXANDRA WEXLER and what investors have been willing to pay at a time when KAMPALA, Uganda—In the the magazine business is un- race to become Africa’s domi- der pressure. nant ride-hailing app, Uber Negotiations continue for Technologies Inc. is trailing a the proposed sale of Fortune, much smaller rival. Money and Sports Illustrated. Taxify OU has sprouted “For over 90 years, TIME within just five years from a has been at the forefront of the small Estonian venture into a most significant events and so-called technology unicorn impactful stories that shape focused on Europe and Africa. our global conversation,” said The company, launched in Motorbikes are a popular Tom Harty, Meredith’s chief 2013 by then-19-year-old form of transport in Uganda executive, in a statement. “We Markus Villig, says it has 2.4 and other African nations. know TIME will continue to million active users in six Afri- Taxify added support for succeed and is in good hands can countries—Uganda, South these before Uber did. with the Benioffs.”

Africa, Nigeria, Tanzania, EDWARD ECHWALU FOR THE WALL STREET JOURNAL The sale marks a new chap- Kenya and Ghana. Taxify deter for a magazine that has fines an active user as some- been one of the country’s most one who has requested a ride Shifting Gears powerful political and cultural in the past month. Uber oper- Taxify has a stronger presence in Sub-Saharan Africa than Uber, even though it entered the market later. forces. ates in those markets as well, “Time has resonance be- claiming 1.3 million active us- Cities world-wide Active users in Sub-Saharan Valuation cause it has always presented ers, or those who have com- Taxify Uber 12 in Sub-Saharan Africa Africa, millions a very American point of pleted a ride within the past view,” said Richard Stengel, a Tallinn, Estonia San Francisco month. It also operates in $1 billion former managing editor of the Egypt and Morocco. 13 magazine. “It was all about Mr. Villig, now 24, said Tax- Date launched in Africa providing analysis, about ify—which gained “unicorn” $76 billion breaking new ideas, with so- status in May with a $1 billion 2016 2013 phistication and polish.” valuation after raising $175 0 200 400 600 0 0.5 1 1.5 2 2.5 Under Time Inc., the maga- million from investors led by zine sought to cut printing Daimler AG—plans to spend Note: Taxify deﬁnes an active user as someone who has requested a ride in the past month and Uber deﬁnes them as someone who has completed a ride within the past month. costs while investing in digital “hundreds of millions” of dol- Source: the companies THE WALL STREET JOURNAL. opportunities. Time has slashed lars to grow on the continent its circulation significantly to over the next couple of years. growing markets. In 2016, cities, compared with Taxify’s snarls resulting from poor ur- mobile money, a technology 2.3 million for the six-month Uber declined to provide spe- Uber gave up its costly battle approximately 15 million regis- ban planning. popular in Uganda and other period ended June 30, accord- cific figures for its Africa infor China’s riders, swapping tered users in more than 50 Still, Uber waited nearly emerging economies because ing to the Alliance for Audited vestment plans but said it has its local operations there for a cities. two years after entering it allows people to receive and Media, down from 3 million in multiple vehicle-financing pro- minority stake in the country’s But smaller competitors are Uganda with its UberX car ser- immediately store funds using the same period a year earlier. grams in several countries to homegrown champion, Didi often able to localize their of- vice before adding boda boda a mobile phone. At the same time, it has tried help drivers. Chuxing Technology Co. In ferings more quickly, with hailing at the end of March. Uber has tried to distin- to expand its digital reach. “Demand in Africa for ride- March, Uber said it would sell such tactics as accepting cash Taxify, which entered Uganda guish its app in Uganda by of- Time.com’s audience grew to hailing services is a lot bigger its Southeast Asian operations payments in countries with with car-hailing in late 2017, fering more safety features. 31.7 million multiplatform than in the developed world to Grab Inc., its top competi- low credit-card penetration introduced its motorbike ser- For instance, boda boda driv- unique visitors in July 2018, up and Europe because of the tor in the region, in exchange and offering motorized-rick- vice in February. ers are required to log into the from nearly 27.4 million in July lack of public transport and for a minority stake. shaw rides in cities like Mom- Uber says it had challenges app with facial recognition 2015, according to media mea- low car ownership,” Mr. Villig Founded in 2009, Uber basa, Kenya. getting motorbike drivers onto software to ensure the correct surement firm comScore Inc. said in an interview. “And due dwarfs Taxify on a global In Uganda, Taxify got a leg its platform initially. Those person is operating the motor- “We’ve done a lot to trans- to high unemployment, people scale. Valued at $76 billion af- up on Uber by offering motor- who showed up often didn’t bike. Taxify doesn’t have that form this brand over the last look for easy and flexible ways ter a $500 million investment bike-hailing first. Motorbikes, have licenses, smartphones or feature. And while Uber’s in- few years so that it is far be- to make money.” from Toyota Motor Corp. in known locally as boda bodas, bank accounts. Now, account surance covers both drivers yond a weekly magazine,” said Taxify’s swift expansion in August, the San Francisco- are a popular mode of trans- specialists from local banks sit and riders, Taxify’s policy ap- Edward Felsenthal, Time’s edi- Africa shows vulnerability to based company has more than portation for hire in cities in Uber’s Kampala offices, plies only to its drivers. tor in chief, in an interview, smaller and nimbler rivals in 75 million active users world- such as Kampala, where cars ready to sign up new drivers. —Nicholas Bariyo adding that the business is some of the world’s fastest- wide.Itoperatesinover600 getboggeddownintraffic Taxify pays its drivers with contributed to this article. “solidly profitable.”

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The Wall Street Journal Business Travel Service is operated independently of the Journal’s news department. THE WALL STREET JOURNAL. **** Monday, September 17, 2018 | B5 TECHNOLOGY & BUSINESS Investors IPO Puts Spotlight on Europe Tech

Weigh Sale Dutch payment firm Adyen’s success fuels Of Stakes optimism for other In Ticketer startups on Continent BY ANNE STEELE The rousing recent listing AND MIRIAM GOTTFRIED of Dutch payments company Adyen NV is offering investors Private-equity firms TPG hope that Europe’s tech scene and Rockbridge Growth Eq- is finally fertile enough to gen- uity are exploring strategic erate a stream of successful options for their stake in tick- startups. eting company AXS, including Adyen, which handles pay- a possible sale, people familiar ment processing for compa- with the matter said. nies including Netflix Inc., The firms, which together Facebook Inc. and Uber Tech- hold 62% of the company, could seek a sale valuing AXS at $250 By Daniel Michaels in million, according to the peo- Amsterdam and Sam ple. Sports and entertainment Schechner in Paris company Anschutz Entertain- ment Group, which holds the nologies Inc., has sparked ex- remaining 38% in the ticketing citement following its initial company and operates it, said public offering in June—one of

it isn’t interested in selling its Europe’s largest this year. Its KRISZTIAN BOCSI/BLOOMBERG NEWS stake. AEG is contractually shares are up 156% since the European venture-backed startups drew $8.7 billion in equity financing in the year’s first half. A robot at a Berlin technology event. guaranteed to be the operating IPO, valuing the company at partner of the company. more than $25 billion. role model for other entrepre- finding exits, like payments AEG hasn’t discussed buy- Investors view Adyen, neurs at high-growth tech Startup Pickup firm iZettle, which was bought ing out the private-equity founded in 2006 and profitable companies,” said Constantijn Europe still lags behind the U.S. in funding tech startups earlier this year by PayPal Inc. partners, according to one of since 2011, as a less expensive van Oranje, special envoy for but enthusiasm is growing. just before it was going to go the people. way to tap into the growth of Dutch tech-entrepreneurship public. The Estonian creators Rockbridge was founded by promotion office StartupDelta Equity ﬁnancing for venture-backed European cities with more than 50 of Skype have helped promote its better-known clients, which tech companies tech-related Meetup events per year Dan Gilbert, co-owner of the also include old-economy re- and a younger brother of Tallinn as a tech hub with suc- National Basketball Associa- tailers. For startup boosters Dutch King Willem-Alexander. $80 billion. 175 cities cesses like fintech startup tion’s Cleveland Cavaliers, across Europe, its success is Marili ‘t Hooft-Bolle, chief TransferWise Ltd. 150 which uses AXS as a ticketing evidence of maturing among operating officer at cloud-stor- U.S. Europe “You’re now seeing the 60 provider. both tech firms and their local age firm WeTransfer, said 125 components come together in There is no guarantee there business environments. Adyen’s offering proves there 100 a really broad range of cities 40 will be a deal, these people The trend differs from past is “more willingness from the 75 across the region,” said Tom said. excitement about the Euro- capital side to invest in Europe Wehmeier, a partner at Lon- Closely held AEG, controlled pean tech scene, which had its as whole.” 20 50 don-based investment firm by billionaire Philip Anschutz, share of false starts over the Adyen was launched by two 25 Atomico. owns and operates venues in- past two decades. The number entrepreneurs who previously 0 0 Natalie Novick, an American cluding Staples Center in Los and variety of startups have built and cashed out of a fin- 2013 ’13’18* ’18* 2012 ’17 sociologist who studies Euro- Angeles, New York’s PlaySta- ballooned in recent years, and tech startup. They are among † pean startup ecosystems, has tion Theater, Target Center in they attract a growing amount a growing European wave of *Through second quarter †Estimate based on data through September found that 21% of European Minneapolis and Sprint Center of venture capital. serial tech founders who are Sources: Dow Jones VentureSource (investments); tech entrepreneurs started in Kansas City, Mo., and owns In the first half of 2018, Eu- tapping experience, connec- Atomico (analysis of Meetup data) THE WALL STREET JOURNAL. their companies outside their or co-owns sports teams in- ropean venture-backed start- tions and capital from earlier home countries. Berlin, she cluding the National Hockey ups attracted $8.7 billion in ventures to establish and fi- tal firms and incubators, as net SE has spawned several notes, is unusual by German League’s Los Angeles Kings equity financing, up 13% from nance new ventures. well as successful launches. ventures that have gone public standards in tolerating busi- and Major League Soccer’s Los the same period a year earlier “There are more examples London has many fintech in recent years, including Za- ness failure. In France, initia- Angeles Galaxy. The company and up 44% from five years in the market of how you can firms like Revolut Ltd. and lando SE, Delivery Hero AG tives such as changes to capi- is also the nation’s second- ago, according to Dow Jones do it,” said Adyen co-founder Funding Circle Holdings Ltd., and HelloFresh SE. tal-gains rules for startup largest concert promoter and VentureSource. This compares and Chief Executive Pieter van which plans an IPO next Other European cities are founders and visas for foreign stages the influential Coachella with $34 billion in the U.S. der Does. “We started from month; Paris has established aiming to replicate that for- entrepreneurs—some launched Valley Music and Arts Festival. over the same period, showing another startup.” firms like carpooling service mula. Stockholm got a boost almost a decade ago and given AXS is much smaller than how wide the gap between Eu- London, Paris and Berlin al- BlaBlaCar and a mammoth from the success of music- new energy by President Em- Ticketmaster, the industry rope and Silicon Valley re- ready have developed tech new startup campus called streaming service Spotify manuel Macron—have cut red leader owned by Live Nation mains. ecosystems, with growing Station F; and in Berlin, Technologies SA and now tape and boosted enthusiasm Entertainment Inc. The Adyen IPO “serves as a numbers of local venture-capi- startup factory Rocket Inter- other Swedish successes are around entrepreneurship. B6 | Monday, September 17, 2018 THE WALL STREET JOURNAL. BUSINESS NEWS Blind Auction for Sky Looms ‘Predator’ Eats Lunch

21st Century Fox, Of Box-Office Rivals Associated Press ing the movie a C+ Cinema- Comcast would Score that echoed the tepid submit secret offers LOS ANGELES—“The Preda- critical response. tor” is at the top of the food Fox parent 21st Century Fox to a third arbiter chain in its first weekend in and News Corp, owner of The theaters. Wall Street Journal, share BY STU WOO Twentieth Century Fox said common ownership. AND BEN DUMMETT Sunday that the film earned Starring Olivia Munn, Ster- an estimated $24 million from ling K. Brown and Boyd Hol- LONDON—The victor in a more than 4,000 North Ameri- brook, “The Predator” made very public bidding war be- can theaters. headlines just weeks before tween 21st Century Fox Inc. But with an $88 million opening when the studio cut a and Comcast Inc. for British production price tag, the scene that featured an actor broadcaster Sky PLC is likely Shane Black-directed install- who was a registered sex of- to be decided in private. ment in the 30-year-old fran- fender. U.K. corporate-takeover chise will be looking to inter- It didn’t appear to have af- rules could require a sealed- national receipts to offset the fected the film’s box office bid auction—also known as a cost. This weekend, it earned performance. blind auction—to conclude $30.7 million from 72 foreign “Any conversation raises what might otherwise become markets, bringing the global awareness,” said comScore se- a never-ending game of ever- total to $54.7 million. nior media analyst Paul Derga- sweeter bids. Domestic audiences were rabedian. “If people are talk- In such auctions, bidders largely male (62%) and white ing about it then they’re

submit secret offers to a third- MATT MCNULTY/PA WIRE/ZUMA PRESS (45%), and underwhelmed, giv- aware of the movie.” party arbiter. They are com- British broadcasting giant Sky is one of the broadcasters of the popular English Premier League. mon in all sorts of commercial transactions, including home 61% of Sky that it doesn’t al- tional footprint and its ability for spectrum, or the airwaves sales, cellular-airwave auc- ready own in December 2016 to sell both telecom services that wireless carriers need. Estimated Box-Office Figures, Through Sunday tions and bidding for profes- for £10.75 a share. After the and original TV programming. Carriers sometimes hire game SALES, IN MILLIONS sional athletes. proposed deal hit regulatory Mr. Murdoch and his family theorists to help strategize FILM DISTRIBUTOR WEEKEND* CUMULATIVE % CHANGE They are very rare, how- and political hurdles, Comcast are major shareholders in both how to outbid rivals. 1. The Predator Fox $24 $24 -- ever, when it comes to high- in February announced its own Fox and News Corp, which In Britain, there are guide- profile deal making involving a bid to buy all of Sky for £12.50 publishes The Wall Street lines, but no firm rules, gov- 2. The Nun Warner Bros. $18.2 $85.1 -66 big public company. Sky is a a share, or $31 billion. Journal. erning a sealed-bid auction re- 3. A Simple Favor Lions Gate $16.1 $16.1 -- British broadcasting giant In July, Fox sweetened its Under U.K. takeover rules, lated to a corporate deal. The 4. White Boy Rick Sony $8.8 $8.8 -- with a stock-market value of offer to £14 a share—only for Fox and Comcast could still Takeover Panel typically works £26.8 billion ($35 billion). Comcast to counter the same avoid an auction if one or both privately with the two bidders 5. Crazy Rich Asians Warner Bros. $8.7 $149.6 -34 “The scale and magnitude day with £14.75, valuing Sky at submit a “best and final” offer to agree on specific proce- *Friday, Saturday and Sunday Source: comScore of the potential auction is $34 billion. On Friday, shares by Sept 22. Neither side is dures, including how compa- something we haven’t seen in closed at £15.78, as investors likely to do so, according to nies would submit bids and recent history,” said Tyler anticipate a higher offer from people familiar with each com- how those bids would ulti- Tebbs, a London-based analyst one side or the other. pany’s thinking. Either side mately be disclosed. If two at Olivetree Financial Ltd., Amid all that, Comcast and could also still drop out of the sides can’t agree with the which focuses on analyzing Walt Disney Co. separately auction. Takeover Panel on auction deals. traded bids to buy Fox. Disney Sealed-bid auctions are rules, the regulator can adopt Britain’s Takeover Panel, a won that contest, agreeing in more typical in lower-stakes its own procedures. regulatory body that polices July to buy a chunk of Fox as- sales. Major League Baseball In the event of an auction corporate deals, last con- sets, including its existing Sky used them for Japanese play- between Fox and Comcast, ducted one in 2008. Wiscon- stake, for $71 billion. ers. In 2006, the Boston Red such rules could be publicly sin-based Manitowoc Co. beat That leaves a deal for Sky Sox won the rights to Daisuke disclosed sometime next week. Illinois Tool Works Inc. with a the only bit of unfinished busi- Matsuzaka with a $51 million An auction could happen $2.7 billion bid for British ness between the three media sealed bid that beat out the shortly after that—even before food-equipment manufacturer giants—pitting Fox, backed by New York Yankees and other the Sept. 22 deadline. Enodis. Disney, against Comcast. Dis- rivals. The Takeover Panel de-

Rupert Murdoch’s 21st Cen- ney and Comcast have both Telecommunications regula- clined to comment on the Sky 20TH CENTURY FOX/EVERETT COLLECTION tury first proposed buying the said they covet Sky’s interna- tors also hold blind auctions bidding. Global receipts for ‘The Predator’ reached $54.7 million.

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Witness to company’s These days, Ms. Montella, norm” that results in work 52, spends most of her time in crowding out other parts of collapse champions Sanibel Island, Fla., where she life. work-life balance after and Mr. Montella live with Achieving balance between their 3-year-old daughter. work and personal life, she personal hardships “I have led a very low-pro- said, isn’t simple. “It’s not, file life since I left Wall let’s lean in all the way and it’s BY ANNE TERGESEN Street,” Ms. Montella said in going to work out. The strug- an interview. “I spend my time gle to have two top priorities Erin Montella says her life at this point raising my isn’t easy. That doesn’t mean today is the antithesis of the daughter.” you don’t try, but you life she led in 2008. In 2013, after the publica- shouldn’t feel that if it’s not Then, she was known as tion of “Lean In: Women, easy you are doing something Erin Callan. She was chief fi- Work and the Will to Lead” by wrong.” nancial officer for Lehman Sheryl Sandberg, Ms. Montella The Montellas recently Brothers Holdings Inc. in the wrote an op-ed article in the launched a charitable founda- months before the company’s New York Times in which she tion called the Life Balance September 2008 collapse. cautioned against giving too Foundation. They started rais- Ms. Montella—as she pre- much to a job. ing money this year to support fers to be called since adopt- “When I left my job, it dev- programs including grants to ing her husband’s surname a astated me,” she wrote. “I families who can’t afford to few years ago—ascended to couldn’t just rally and move take maternity leave. The the CFO role at age 41 in De- on. I did not know how to broader goal, Ms. Montella

cember 2007, just as the finan- JEFF RIEDEL/CONTOUR/GETTY IMAGES value who I was versus what I said, is to help people estab- cial crisis was gathering mo- Erin Montella wrote she had to ‘change my life and my priorities dramatically’ following Lehman. did…Until recently, I thought lish balance between work and mentum. my singular focus on my ca- family life. Some considered the in- tors including hedge-fund AG to work with hedge funds. “I was depressed, sad and reer was the most powerful in- Ms. Montella declined to vestment banker an unortho- manager David Einhorn, who But in early 2009, she left angry all bundled up in one gredient in my success. But I comment on her final months dox choice because she had had bet Lehman shares would both Credit Suisse and Wall little firecracker ready to ex- am beginning to realize that I at Lehman beyond what she never worked as an accoun- decline. In June 2008, after Street behind. plode,” Ms. Montella wrote in sold myself short. I was tal- wrote in her book. tant or in the finance depart- Lehman posted a $2.8 billion In her 2016 memoir “Full her memoir. “The way I looked ented, intelligent and ener- One highlight: a 2015 phone ment. She quickly became the second-quarter loss, Ms. Mon- Circle: A Memoir of Leaning In at the world, what I did was getic. It didn’t have to be so call from Lehman’s chief exec- public face of the firm, striv- tella resigned. Three months Too Far and the Journey the totality of who I was. And extreme.” utive Richard Fuld Jr., who ing to make the case that the later, the firm was gone, too, Back,” Ms. Montella chronicles if I wasn’t doing it, then was I The volume of response said “he felt he had left me on business was sound through when Lehman filed for the her career and her efforts, fol- anybody, really? Was there from readers, she said, my own to handle things and the media and in conference largest bankruptcy in U.S. his- lowing a suicide attempt in any value to me without my prompted her to write the shouldn’t have,” she wrote. calls and meetings with inves- tory. late 2008, to build a new life job?” memoir. “As much as I appreciated the tors. Following her resignation, with Anthony Montella, a for- Ms. Montella concluded she Ms. Montella warns that call, and I genuinely did, I put The highest-ranking woman the Harvard University gradu- mer New York City firefighter “had to change my life and my small decisions—to spend an it in its proper place. A final on Wall Street at the time, Ms. ate, who started her career as whom she had met in high priorities dramatically so that hour on Sundays catching up closing for that chapter of my Montella also became a light- a corporate tax attorney, school in Queens, N.Y. The two I would never again make a on email, for example—can life, leaving it with a better ning rod for anger from inves- moved to Credit Suisse Group reconnected in 2007. decision” like that. quickly establish “a new ending.” Women Rarely Run Big Four’s Biggest Audits, Study Says BY MICHAEL RAPOPORT In addition, according to trained in complex financial PricewaterhouseCoopers draws on newly available data Cathy Engelbert at Deloitte, the study, women are even matters, she said, not as many LLP said women accounted for about engagement partners, Lynne Doughtie at KPMG and Three of the Big Four ac- less likely to head the audits women could show up in se- 30% of the 2018 partner class whom the firms have had to Kelly Grier at EY head their counting firms in the U.S. now of the largest companies—only nior financial positions in the and it is “laser-focused on en- identify since a new regulation firms. But that hasn’t trans- have women in the corner of- 11% of the engagement part- corporate realm. hancing female representation requiring it went into effect lated into equality at the part- fice, but auditing still has a ners for the audits of S&P 100 on all of our teams at every last year. The new rule from nership level: Women make up large gender gap. companies are women—as professional level.” the Public Company Account- 51% of the full-time staff at A forthcoming study sug- well as old-line companies Women also made up 30% ing Oversight Board is U.S. accounting firms but only gests women are underrepre- that have been with their cur- Women tend to enter of newly promoted partners at intended to improve audit 24% of partners and princi- sented among the accounting- rent audit firms for decades. the accounting field Ernst & Young LLP in the partners’ accountability and pals, according to data from a firm partners who head the The big accounting firms Americas this year. The firm give investors a sense of their separate study earlier this outside audits of America’s often serve as “a natural pipe- in numbers close to said it is ”committed to even track records. year from the Accounting biggest public companies. Only line” to train people who later those of men. greater representation of The dearth of women MOVE Project, which pro- 15% of the “engagement part- become chief financial offi- women and diversity.” among engagement partners motes more women in ac- ners” in charge of each S&P cers, controllers and audit- Deloitte LLP said it contin- “is something we wouldn’t counting. 500 company’s audit are committee members at public ues “to invest significantly to have been able to see before Various possible reasons women, according to the study companies, said Sandra Peters, The Big Four firms say they develop, sponsor and mentor without this data,” Ms. Peters have been cited, from a lack of by the CFA Institute, which the CFA Institute’s head of fi- are taking steps to improve women as our lead client en- said. role models to a desire for represents chartered financial nancial-reporting policy. If opportunities for women and gagement partners.” KPMG Women tend to enter the more work-life balance as analysts. The study is expected there aren’t enough women increase the number of female LLP declined to comment. accounting field in numbers women ascend through the to be published this week. among engagement partners partners. The CFA Institute study close to those of men, and ranks.

Currencies Metals Fall on Concerns About Tariffs U.S.-dollar foreign-exchange rates in late New York trading US$ vs, US$ vs, Fri YTD chg Fri YTD chg BY PAUL GARVEY day as the dollar climbed on Country/currency in US$ per US$ (%) Country/currency in US$ per US$ (%) Tarnished the latest tariff news alongside Americas Europe Metals prices received a Gold prices slipped Friday after signs of rising trade frictions. positive economic data. Argentina peso .0250 39.9557 114.8 Czech Rep. koruna .04563 21.916 3.0 battering on Friday after fresh The WSJ Dollar Index— Brazil real .2395 4.1752 26.1 Denmark krone .1558 6.4187 3.4 reports of more China tariffs $1,400 per troy ounce which measures the currency Canada dollar .7668 1.3041 3.7 Euro area euro 1.1622 .8605 3.3 spooked investors and sent the against a basket of 16 others— Chile peso .001456 687.00 11.6 Hungary forint .003575 279.73 8.0 11unch Ecuador US dollar Iceland krona .009093 109.97 6.2 U.S. dollar higher. gained 0.4% on Friday after .0529 18.8912 –4.0 Mexico peso Norway krone .1211 8.2567 0.6 Gold and copper both falling earlier in the day. .03044 32.8500 14.1 1,300 Uruguay peso Poland zloty .2700 3.7039 6.5 opened higher on Friday but Gold prices and the dollar Venezuela b. fuerte .000004248519.9501 2402951.2 Russia ruble .01469 68.080 18.0 ended in the red after tend to move inversely to one Asia-Pacific Sweden krona .1105 9.0495 10.6 Bloomberg reported that Presi- another, with a rise in the dollar Australian dollar .7152 1.3982 9.2 Switzerland franc 1.0324 .9686 –0.6 dent Trump had instructed making dollar-denominated China yuan .1455 6.8705 5.7 .1621 6.1703 62.6 1,200 Turkey lira aides to push ahead with tar- commodities more expensive to Hong Kong dollar .1274 7.8463 0.4 Ukraine hryvnia .0355 28.1570 0.04 iffs on around $200 billion of other currency holders. Eco- India rupee .01387 72.105 12.9 UK pound 1.3068 .7652 3.4 .0000675 14815 9.9 Chinese products. nomic data released Friday Indonesia rupiah Middle East/Africa Japan yen .008925 112.05 –0.6 2.6522 .3770 –0.02 Both metals had been edg- morning also boosted the dollar, Kazakhstan tenge .002687 372.18 11.9 Bahrain dinar 1,100 .0558 17.9095 ing higher earlier in the week with industrial output and con- Macau pataca .1237 8.0836 0.5 Egypt pound 0.8 on hopes that fresh talks be- JFMAMJJASsumer sentiment figures both Malaysia ringgit .2416 4.1385 1.9 Israel shekel .2794 3.5796 2.9 tween the U.S. and China could Source: Dow Jones Market Data THE WALL STREET JOURNAL. coming in above expectations. New Zealand dollar .6544 1.5281 8.4 Kuwait dinar 3.3025 .3028 0.5 2.5972 .3850 0.02 help resolve the trade dispute. Among other metals, silver Pakistan rupee .00807 123.845 11.9 Oman sul rial .0185 54.110 8.3 .2746 3.642 –0.2 The price of gold for Sep- gains from earlier in the week. has weighed on the gold price dropped 0.71% to $14.042 a Philippines peso Qatar rial Singapore dollar .7277 1.3741 2.8 Saudi Arabia riyal .2666 3.7509 0.01 tember delivery fell 0.58% to Copper for September deliv- in recent months, but weak- troy ounce, zinc fell 1.1% to South Korea won .0008915 1121.66 5.1 South Africa rand .0670 14.9345 20.8 $1,195 a troy ounce on the ery also was down, falling ness in the currency earlier in $2,334 a metric ton, aluminum Sri Lanka rupee .0061054 163.79 6.7 Comex division of the New 1.39% to $2.40 a pound on the the week had helped gold lost 1.02% to $2,043 a metric Taiwan dollar .03250 30.772 3.7 Close Net Chg % Chg YTD % Chg York Mercantile Exchange on Comex division. make up lost ground. That re- ton, and nickel gained 0.4% to Thailand baht .03059 32.690 0.3 WSJ Dollar Index 89.59 0.36 0.40 4.20 .00004301 23249 2.4 Friday, unwinding some of its The rise in the U.S. dollar covery was wiped out on Fri- $12,655 a metric ton. Vietnam dong Sources: Tullett Prebon, Dow Jones Market Data

THE TICKER | Market events coming this week

Monday Gasoline up 1.3 gas Distillates up 6.2 Previous change in stocks in Empire billions of cubic feet Manufacturing Building permits up 69 Aug., previous 25.6 July, previous Existing home sales Sept., expected 22 1.311 mil. July, prev. 5.34 mil. Aug., expected Earnings expected* Aug., exp. 5.38 mil. 1.31 mil. Estimate/Year Ago($) Leading indicators FedEx 3.82/2.51 Current account July, previous up 0.6% Oracle 0.68/0.62 1st qtr., previous Aug., expected up 0.5% $124 bil. deficit Tuesday 2nd qtr., expected Philadelphia Fed Earnings expected* $103 bil. deficit survey Estimate/Year Ago($) Aug., previous 11.9 Housing starts AutoZone Sept., expected 14 July, prev. 1.168 mil. 17.99/15.27 Aug., exp. 1.23 mil. General Mills Earnings expected* 0.64/0.71 Earnings expected* Estimate/Year Ago($) Darden 1.24/0.99 Estimate/Year Ago($) Micron Tech. Wednesday Copart 0.48/0.35 3.32/2.02 Red Hat 0.82/0.77 Mort. bankers indexes Thor Industries Purch., previous up 1% 2.01/2.26 Refinan., prev. down 6 % Thursday Initial jobless claims EIA status report Friday Previous 204,000 Previous change in stocks in No major events are Expected 209,000 millions of barrels scheduled Crude oil down 5.3 EIA report: natural

* FACTSET ESTIMATES EARNINGS-PER-SHARE ESTIMATES DON’T INCLUDE EXTRAORDINARY

ITEMS (LOSSES IN PARENTHESES) ADJUSTED FOR STOCK SPLITNOTE: FORECASTS ARE FROM SCOTT MCINTYRE/BLOOMBERG NEWS DOW JONES WEEKLY SURVEY OF ECONOMISTS Analysts expect delivery giant FedEx to report quarterly earnings of $3.82 a share on Monday, up from $2.51 in the year-ago period. B10 | Monday, September 17, 2018 THE WALL STREET JOURNAL. MARKETS

Even after a rally Friday, the U.S. dollar has stalled near its lowest levels since late August. The currency has been weighed down 2900 U.S. Stocks Take the Global Lead recently, in part by worries over an expected rise in the country’s trade and budget deficits. Further declines could ease pressure on multinational corporations, whose earnings have suffered because The S&P 500 notched its best 2850 they need to convert foreign profits into dollars, while boosting week since mid-July after exporters by making their products more competitive abroad. investors took the U.S.’s latest 90.0 overture to China as a sign that 2800 trade tensions might be 89.8 receding. Booming economic 2750 growth and a run of strong WSJ Dollar Index 89.6 corporate profits have S&P 500 supported stocks in the U.S. 2700 89.4 But many indexes around the world have struggled with a 89.2 2650 slowdown in economic Sept. 10 11 12 13 14 expansion and a stronger dollar. The dollar’s recent rise has Recent gains in software firms including Oracle Corp. have helped the 2600 showed signs of stalling, technology sector trim some of its month-to-date losses and offset relieving some of the pressure declines in chip makers. Investors will monitor earnings from Oracle, Red Hat Inc. and Micron Technology Inc. in the coming week to see if on emerging-market economies 2550 fresh results can further boost the year’s best-performing sector. and multinational corporations. Jan. Feb. March April May June July Aug. Sept. 4% Oracle 15% S&P BSE Sensex S&P/ASX 200 Nikkei Stock Average India Australia Japan 2 Nasdaq 10 Composite 0 5 Red Hat 0 S&P 500 –2 Micron –5 Technology –4 –10 –15 –6 –20 –8 JFMAMJJAS JFMAMJJAS JFMAMJJAS –10 15% CAC 40 Stoxx Europe 600 FTSE 100 Sept. 10 11 12 13 14 10 France Europe U.K. 5 Energy stocks rose alongside oil prices last week. The gains left 0 the S&P 500 energy sector roughly flat for the month, as traders prepare to weigh weekly U.S. inventory data and figures pointing –5 to rising production from the Organization of the Petroleum –10 Exporting Countries. Some analysts think fallout from Hurricane –15 Florence could also affect demand for energy products. –20 $71 a barrel JFMAMJJAS JFMAMJJAS JFMAMJJAS IEA says OPEC production surged U.S. crude-oil price last month 15% DAX Hang Seng Shanghai Composite 70 10 Germany Hong Kong China 5 69 0 –5 –10 68 –15 –20 67 Note: Continuous front-month futures JFMAMJJAS JFMAMJJAS JFMAMJJAS Sept. 10 11 12 13 14 Sources: FactSet (indexes); Dow Jones Market Data (WSJ Dollar Index); SIX (tech sector, crude oil) By Michael Wursthorn and Amrith Ramkumar, Graphics by Tristan Wyatt/THE WALL STREET JOURNAL. HEARD ON THE STREET Email: [email protected] FINANCIAL ANALYSIS & COMMENTARY WSJ.com/Heard Wells Fargo’s Woes Are Spreading OVERHEARD China’s NIO

Wells Fargo is having a ments without their consent For those hanging on to Makes Tesla tough time expanding its Not Growing as recently as this year. an old set of favorite head- loan book. The drumbeat of Wells Fargo total loans outstanding, change from a year earlier Given all this negative phones, Apple has a message Look Cheap negative news around its news flow, it isn’t surprising for you: Two years is long governance issues is one rea- 10% that some companies would enough. NIO, China’s answer to son for its struggles, and rather borrow from someone Last week’s unveiling of Tesla, is off to an electrify- shooting the messenger 8 else if pricing and terms are big, new iPhones also marked ing start. Its sky-high valua- won’t help. similar. the second anniversary of Ap- tion, however, makes even Chief Financial Officer 6 Asked at Friday’s confer- ple’s controversial decision to Elon Musk’s company look John Shrewsberry said at a ence when the bad news remove the standard 3.5-milli- like a bargain. conference on Friday that he 4 might abate, Mr. Shrews- meter headphone jack from Counting after-hours trad- expects two key classes of berry was blunt. “A lot of its popular line of smart- ing, the share price almost business loans, commercial 2 these negative headlines re- phones. doubled Thursday, two days real estate and commercial fer to things that have been The company eased the after the electric-vehicle 0 and industrial loans, to fall 0.02 previously really well aired pain with a small adapter— maker raised $1 billion from from second-quarter levels, and vetted, but it’s a very re- also known as a dongle. But an initial public offering on –2 Quarterly although he didn’t specify an liable ad seller, I think, and Apple will no longer include the New York Stock Ex- exact time frame. Wells 2016 ’17 ’18 it’s a business model for the adapters with the iPhone change. That lifted NIO’s Fargo’s total loans outstand- Source: the company THE WALL STREET JOURNAL. some people,” he said, mak- 7 and 8 models, based on the market value to $14 billion, ing at the end of the second ing clear he was referring to product pages updated by the topping the likes of Korea’s quarter were down by $3 bil- an alternative funding source the retail bank, where the journalists. company. Kia Motor and Japan’s lion from the prior quarter, and a competitive environ- account-sales controversy Shifting blame to those Those tiny dongles are re- Mazda Motor. driven by declines in con- ment, including from non- emerged in 2016. In the sec- who helped bring its lapses portedly among the top-sell- Investors are betting NIO sumer and commercial real- bank lenders. But he also ac- ond quarter of this year, for to light is unlikely to reas- ing Apple products at retail could become Beijing’s cho- estate loans. Commercial and knowledged for the first instance, Wells booked $171 sure potential clients or in- giant Best Buy. sen national EV champion. industrial loans rose. time that reputational issues million of costs to compen- vestors that Wells Fargo is Shares of Cirrus Logic, But the stock looks risky. Several midsize regional may be hurting its commer- sate customers who were im- taking its issues as seriously which supplies chips used in NIO has generated revenue lenders also warned of soft cial-lending business, not properly charged for cur- as it should. The bank’s com- the adapters, fell 4% Thurs- for only a few months and lending last week, which hit just the consumer business rency trades. This month, petitors are pulling ahead day on worries about the only began delivering its sole their share prices. But most where the impact has long The Wall Street Journal re- while it remains stuck in the change. model in June. With a price merely cited a slowdown, been obvious. ported that the Justice De- mud. Despite this, its shares Not that users loved the around half that of Tesla’s not an outright decline. Fresh revelations of gov- partment is probing whether are still relatively expensive products, which get 1½ stars Model X, it is a money loser. Mr. Shrewsberry cited a ernance issues at the bank employees in Wells Fargo’s at 1.5 times book value. on the Apple website. Captive NIO could burn through its host of factors, including have continued to dribble wholesale-banking unit com- There is still no reason for audiences aren’t the most cash on hand by next year. lending discipline, strong out in recent months. And mitted fraud by adding infor- investors to hold this stock. forgiving ones. Reservations and deliver- capital markets that provide they haven’t been limited to mation to customer docu- —Aaron Back ies about match those of the then-new Model S in 2012, according to Bernstein. But back then Tesla’s market value was just $4 billion. Dell Must Make Case It Can Succeed Where HP Failed Tesla’s current enterprise Dell Technologies has to the $100 billion mark in its to hit a record $5.1 billion in enough for activists who are value equates to 1.8 times convince investors this week Upscaled latest fiscal year. the most recent fiscal quar- reportedly unhappy with the expected 2020 sales. For that it isn’t the next Hewlett Dell’s annual revenue for But size isn’t everything, ter. The addition of EMC’s price Dell is offering for the NIO, that would translate to Packard. The company’s re- ﬁscal years ended January and it is sometimes a hin- higher-margin data-storage tracking stock it created to $8 billion in revenue in two cent performance should drance. Dell’s arch rival HP business has improved prof- help finance its EMC acquisi- years, suggesting output of make that a little easier. $100 billion Midpoint of spent the past few years di- itability. And Shannon Cross tion. Dell’s current plan to go 110,000 cars—an ambitious company forecast Dell will host an analyst 80 vesting and ultimately split- of Cross Research notes that public involves buying out target for a company that meeting on Tuesday as part 60 ting into two smaller compa- the merger provided very that tracking stock for a mix last month delivered 1,121. of its final push to sell Wall nies after its size became strong cross-selling opportu- of cash and shares in the re- And NIO didn’t even make Street on a complex deal that 40 unwieldy. Dell will make the nities, as the two companies’ sulting Dell entity, so enough them. Its plants remain un- will return the corporate IT 20 case that it is a different core markets had little over- opposition by holders of the der construction so it relies giant to the public market. kind of giant with a better lap previously. tracking stock could stymie on a state-owned car maker. 0 Dell went private in 2013 mix of businesses. Dell also has a stronger its efforts. And, where Tesla had a head and has since merged with FY2000 ’05 ’10 ’15 ’19 The timing is good. Dell’s collection of software assets A source close to Dell says start, NIO faces abundant EMC Corp, resulting in a Sources: S&P Capital IQ; the company overall revenue rose 18% than HP did. This most nota- the company won’t raise its competition from other company on track to gener- year-to-year to $44.3 billion bly includes its 82% owner- price, so Dell will need to startups like Xiaopeng Mo- ate more than $90 billion in level, Dell would rank as the for the six-month period ship stake in VMware, which make an especially strong tor, as well as traditional car annual sales for its current fifth-largest publicly traded ended Aug. 3. The company has been growing at a dou- case on why it can succeed makers from BMW to Volvo. fiscal year, compared with tech company in the U.S. by is benefiting from a strong ble-digit rate over the past where HP failed. It is at least Investors should hop off about $57 billion when it left annual revenue, just below PC cycle, and server revenue six quarters. off to a good start. NIO while it is still accelerat- the public stage. At that Microsoft, which surpassed jumped 34% year over year That still may not be —Dan Gallagher ing. —Jacky Wong R2 | Monday, September 17, 2018 THE WALL STREET JOURNAL. JOURNAL REPORT | INNOVATIONS IN HEALTH CARE Benefits Genetic-testing results on health and disease risks aren’t always as clear as Of Density consumers might assume. People in compact areas live longer, a study finds

BY HEIDI MITCHELL

URBAN SPRAWL may be bad for your health. So says a recent study published in the International Journal of Envi- ronmental Research and Public Health that found, all other things being equal, Americans who live in compact metropolitan counties live longer on average than those who reside in more sprawling ones. For years, the U.S.’s life-expectancy ranking has been falling compared with other developed nations, and sociologists have been looking at factors such as gender, race, education, income, population, environment and behavior to determine why. This study, conducted by Shima

GETTY IMAGES Hamidi, the director of the Institute of Urban Studies at the University of Texas at Arlington, identifies a potential new factor: the effect of ur- Before Ordering a DNA Kit... ban sprawl on residents’ health. Using 2010 census data, Dr. Hamidi measured the compactness What happens to the sample I submit after it’s tested—and other questions you should consider of almost 1,000 urban, suburban and exurban counties in America, with BY AMY DOCKSER MARCUS There are efforts to help. Over the assessments. Results may vary de- chooses to store the sample, it may the average score being 100. Areas summer, the Future of Privacy Forum pending on how many people a com- be retained anywhere from one to 10 that scored above 100 are consid- and several consumer testing compa- pany has in its database, as well as years. Customers can change their ered more compact, those below 100 LESS COSTLY genetic testing has let nies, including 23andMe, Ancestry, how diverse their backgrounds are. minds and opt to discard the sample more sprawling, she explains. millions of people unlock the infor- Helix, MyHeritage and Habit, re- Some groups, including people of Af- at a later date. After controlling for income and mation in their DNA. Yet there’s a lot leased a set of best practices they rican and Southeast Asian descent, Some people want the sample de- other socioeconomic variations about these tests they don’t know— agreed to follow and say can help the are often underrepresented in data- stroyed because they want to mini- among counties, as well as behavioral but should. burgeoning industry. Among the bases. mize the risk of misuse or unauthor- and environmental factors, the study The popularity of direct-to-con- principles: providing consumers with And companies may update their ized disclosure of data, Vanderbilt found that a doubling of a county sumer testing continues to surge as an overview of key privacy protec- own methods for making estimates University researcher James W. Ha- score was associated with a 3.5% in- more people order testing kits or re- tions. about people’s ethnicity, leading to zel says, or they simply have a crease in its residents’ life expec- ceive them as gifts. Many are avail- Genetic counselors and privacy new interpretations. In September, change of heart. But others may tancy. For the average American with able for under $100, making genetic researchers advise people to read the Ancestry announced it was using a choose to store the data, hoping to a life expectancy of 78 years, this tests increasingly affordable. companies’ policies carefully. new algorithm that would analyze learn more from a reanalysis down translates into a 2.7-year difference. Lately, however, consumer genetic They also offer some questions to longer segments of people’s DNA and the line as understanding of genes “There are disparities of more testing has come under greater scru- consider: offer more specific geographic re- continues to improve. than 20 years between counties with tiny. Consumers are sometimes sur- sults. the highest and lowest life expectan- prised by the many ways genetic in- How heavily can I rely Results of Political and geo- If I consent to allowing my DNA to be cies, but we found that the impact of formation can be used. Earlier this on health and disease- graphic borders of used in research and later change my sprawl amounts to about a 2.7-year year, police in California disclosed risk results I get? ancestry tests countries have shifted mind, can I withdraw my consent and difference on average,” she says. they tracked down a suspect in a de- Direct-to-con- may differ over history, and tribes remove my data? For Dr. Hamidi, three main factors cades-old string of serial murders sumer genetic testing and people migrated to Individual company policies stood out in her research. First, with help from the genetic informa- can provide informa- from company different places. How should be checked, but in general, while compact counties have more tion of a distant relative, which was tion about potential to company. companies define eth- the rule is: Yes, you can. Instructions car crashes, they are 15% less likely available in a public database. Inves- health risks. But the nicity or national ori- on how to make a request can be to be fatal, due to slower speeds and tigators have applied similar methods results aren’t always gin may differ from found on company websites. But quicker care. Another factor, as she to solve other old criminal cases. as clear as consumers people’s own defini- many companies also state that expected, is obesity. “Compact areas Businesses are also beginning to might assume. Just because someone tions or their oral family traditions. while you are free to withdraw your provide opportunities for being get attention for how they use peo- is at higher risk for a disease doesn’t consent for participation in future physically active and being less car- ple’s genetic information. Drugmaker mean he or she will get it. Diet, envi- Will I be paid if a testing company research studies, data that have al- dependent, not to mention having GSK announced in July that it was in- ronment, lifestyle, family history and sells or licenses my genetic informa- ready been entered into a study better access to healthy food,” she vesting $300 million in 23andMe and other factors play a role. Stacey Det- tion to someone else? won’t be pulled out. says. The third factor, surprisingly, is embarking on a multiyear collabora- weiler, a genetic counselor at Overall, the answer is no. But if air quality, “because denser places tion to mine genetic information in 23andMe, says consumers should al- you consent to participate in re- Can genetic information that I find are more reliant on public transit the testing company’s database to ac- ways consult with a physician or ge- search, some companies may com- out through testing be used to dis- systems or walking and biking in celerate drug development and iden- netic counselor before taking any ac- pensate you for your time, through criminate against me? mixed-use areas,” she says. tify candidates for clinical trials. tion based on test results. gift certificates, discounts on future A federal law called the Genetic “It isn’t an easy fix,” Dr. Hamidi 23andMe says it shares only aggre- Some companies say they will test purchases or small charitable dona- Information Nondiscrimination Act says. “But if we can get started gated information with collaborators, DNA to give advice about the best tions, depending on the circum- bars health insurers from using ge- thinking about quality-of-life aspects not any individual information. diet or most suitable romantic part- stances and their legal and ethical netic information to determine of sprawl now, perhaps we can pri- Consumers also worry that the re- ner. These claims aren’t “scientific,” guidelines. someone’s eligibility or coverage. But oritize enacting zoning codes that sults of testing might be used to dis- experts say, and may raise false ex- the law doesn’t prevent genetic dis- encourage what we call smart criminate against them when trying pectations. What happens to my DNA sample af- crimination by life, disability or long- growth: mixed-use developments, to get insurance. There are federal ter the test is run? term-care insurers. downtown residency and investment and state laws that govern different Why are my ancestry-test results dif- When people request a kit, com- around transit stations.” aspects of genetic testing, but not all ferent depending on the company? panies will often ask whether they Ms. Dockser Marcus is a Wall apply to consumer companies or Companies rely on proprietary da- want to have their DNA sample Street Journal reporter in Boston. Ms. Mitchell is a writer in Chicago. cover all forms of insurance. tabases and algorithms to make their stored or discarded. If the customer Email [email protected]. Email [email protected].

trients from the placenta. necologists recommended a number of im- New, Improved Infant Care However, each year about 10 million babies provements in postpartum care, saying the cur- are born not breathing, and six million of those rent system leaves many women to navigate need to be resuscitated. In those cases, the physical and emotional challenges on their own Continuedfromthepriorpage for the first year of the baby’s life; they may be cord is cut right away and the babies handed until the traditional postpartum visit as many they are learning more about how a baby’s early asked to fill out surveys about how the results off to a special resuscitation team. But animal as six weeks after delivery—and as many as experiences—like exposure to a mother’s voice, play a role until the child is 18. studies have shown that clamping the cord be- 40% of women don’t attend those. the room environment and painful experiences Results will be shared with primary-care pro- fore a baby breathes can cause the heartbeat to Part of the problem is that the visits don’t like the needles used to place an IV—might af- viders, and families and providers will be sur- slow and decrease the amount of blood being cover many issues women need help with, in- fect brain development. “It’s not just brain in- veyed about how the results affect the baby’s pumped out of the heart each minute. cluding emotional well-being, physical compli- jury, but the experience of the baby in the NICU medical care and how participation has affected Obstetricians are now testing whether there cations from giving birth, sleep and fatigue. and the amount of infant stress that cause devi- stress or family relationships. “Sequencing at is any benefit to providing extra blood from the They also may fail to provide counseling on ation and disturbance in brain development,” birth could provide a template—a book of life, placenta at the time of delivery to nonbreathing breast-feeding or assess a mother’s confidence says Terrie Inder, chair of the department of pe- if you will—to predict conditions or decide infants. With funding from the federal Eunice in caring for the newborn. diatric newborn medicine at what medications to use for Kennedy Shriver National In- “These visits aren’t provid- Brigham and Women’s Hospi- an entire lifetime,” says Rob- stitute of Child Health and ing value,” says task-force co- tal in Boston. ert Green, a medical geneticist Human Development, re- chair Alison Stuebe, associate In a newly expanded NICU at Brigham and Women’s and searchers led by a team at professor of obstetrics and gy- at Brigham and Women’s, the professor at Harvard Medical Sharp Mary Birch Hospital in necology at the University of hospital recently installed the School who is coleading the San Diego are investigating North Carolina School of Med- Embrace neonatal MRI, a sys- study. whether they can reduce NICU icine. “A patient comes in, and tem designed specifically for In addition, parents have admissions and later develop- the doctor may say it’s OK to the NICU. Dr. Inder says it will been told when their infant mental problems by using a have sex again, but that’s not let researchers track how in- carries a change in DNA that technique called umbilical- necessarily all women want to fants’ brains are developing, confers risk for any of several cord milking on babies who hear about.” assess whether brain injury thousand childhood-onset dis- are not breathing. The task force recommends has occurred and guide which eases caused by a single gene. Anup Katheria, lead re- reimbursement policies that treatments may help prevent Dr. Green notes that “it has searcher on the study and di- cover postpartum care as a disability. been extremely controversial rector of the neonatal re- continuing process. New to sequence healthy babies search institute at Sharp, says mothers should have an as- Studying infant genomes because no one knows what umbilical-cord milking will be sessment within the first A blood test known as the you will find” or how it might used for full- and near-term three weeks after birth and STU ROSNER “heel stick” for newborns trigger unnecessary testing, infants who are born needing SHARP HEALTHCARE ongoing care as needed, con- screens for about 30 condi- Terrie Inder’s team in Boston interfere with parent-child resuscitation at birth. Delivery Anup Katheria’s team in San cluding with a comprehensive tions. But with funding from is seeking ways to prevent or bonding or create distress for teams will leave the cord in- Diego is trying a technique well-woman visit, not later the National Institutes of minimize brain injury. parents. Concerns about pri- tact and squeeze the cord called umbilical-cord milking. than 12 weeks postpartum. Health, researchers at vacy, as well as potential in- quickly “like a tube of tooth- More broadly, the task force Brigham and Women’s, Boston Children’s Hos- surance discrimination, have been barriers to paste” four times toward the baby, without de- says provisions for paid parental leave are es- pital and Massachusetts General Hospital are some families who declined to participate. laying resuscitation procedures, he says. “That sential to enable women to recover after birth investigating a more extensive screening: ge- Researchers are also investigating the role blood is full of billions of stem cells the baby and nurture their infants. During the first few nome sequencing, which examines large num- of epigenetics—external modifications to DNA will have for the rest of their lives, so why not months of newborns’ lives, the researchers say, bers of genes within the DNA of these infants. that switch genes on and off—in the inheri- give them the extra cord blood when they need they require intense, womblike nurturing. View- The study, called the BabySeq Project, is ex- tance of traits such as obesity. They’re study- it most?” ing the mother and infant as a unit—and sup- ploring how to analyze and present this infor- ing whether weight-control genes could be porting the mother’s needs more effectively— mation, and tracking how parents and doctors switched from obese to lean by supplementing Improving postpartum care may be one of the most important factors in will understand and use it. diet, minimizing stress or using drug therapies. Maternal-health experts have developed the ensuring newborns get the care and develop- The project recently completed the first concept of the “fourth trimester” to describe ment they need. phase of enrollment, recruiting and enrolling A low-tech breathing aid the weeks following birth, a critical period for 325 families and randomizing them to receive After a baby is delivered, more hospitals are a mother and infant that can set the stage for Ms. Landro, a former Wall Street Journal sequencing or usual care. Families of infants delaying cutting the umbilical cord for up to a long-term health and well-being. assistant managing editor, is the author of who will receive sequencing learned the results minute—a practice known as delayed cord In May, a presidential task force overseen by “Survivor: Taking Control of Your Fight and will remain in contact with the study team clamping, which provides extra blood and nu- the American College of Obstetricians and Gy- Against Cancer.” Email [email protected]. R4 | Monday, September 17, 2018 THE WALL STREET JOURNAL. JOURNAL REPORT | INNOVATIONS IN HEALTH CARE Are Eggs Bad for You?

For years, eggs were synonymous with a cholesterol, and diners ingest more satu- ing eggs outweigh the risks. have been overdone. healthy breakfast. Then the tables turned. rated fat when they consume eggs pre- The American Heart Association and the And yet to many scientists, concerns Doctors and nutritionists started saying pared in typical ways. U.S. Department of Agriculture both have about cholesterol and fat in our diets are not to eat eggs, particularly if you wanted But eggs also are rich in protein and increased their estimates of the amount of as valid as ever. to avoid heart disease. other important nutrients, leading some eggs that can be safely consumed each So, about those eggs: Sunny-side up? The problem: Eggs contain unwanted scientists to argue that the benefits of eat- day, suggesting that warnings about eggs Or thumbs down?

while it is true that everyone absorbs dietary density lipoprotein, or HDL, the “good” cho- YES: They Are cholesterol at different rates, few of us know NO: There Is No lesterol, so named because HDL removes cho- whether we are superabsorbers or poor ab- lesterol from the arteries and returns it to the Tasty, but Not Worth sorbers. Lifelong recommendations based on Direct Link Between liver for elimination from the body. Some- studies of roughly 50 patients and for no lon- times eggs raise HDL without raising levels of the Increased Risk of ger than three months seem a bit chancy. Diet and Cholesterol low-density lipoprotein, or LDL, the bad cho- Also, some of these studies have been funded lesterol, thus increasing the ratio of good cho- A Heart Attack by the Egg Nutrition Center, an advocacy Levels lesterol to bad. In other cases, eating eggs has group for the egg industry. raised LDL levels but raised HDL levels at the BY WILLIAM C. ROBERTS Adults rarely consume one egg by itself. BY MARIA LUZ FERNANDEZ same time, thus keeping the ratio the same. Eggs often come with bacon or sausage, but- In my laboratory, I have conducted 12 di- tered toast, french fries, and are often cooked etary interventions involving the consumption ATHEROSCLEROSIS, which in butter or other oils high in fat. They are IT’S TIME WE PUT to rest of two to three eggs a day for extended peri- includes blockages and sometimes covered with ketchup, the sugar the fallacy that eggs are ods by children, young men and women, el- hardening of the arteries, content of which is higher than that of ice bad for you. derly populations, obese populations, individ- is caused by cholesterol, cream. It is the saturated fat (mainly from A vast amount of re- uals with metabolic syndrome, and patients and the higher the blood- animal muscle, cheese, milk and butter, or search has clearly proved with type-2 diabetes. In all of these studies, cholesterol level, the from oils) that raises our blood cholesterol that there is no correlation results have consistently shown that eggs greater the chance of hav- level the most. Thus, the company that eggs between consuming eggs don’t increase the biomarkers of heart dis- ing a heart attack. keep may be more detrimental to our health and increased risk for ease, including the ratio of bad cholesterol to The human food that has the highest con- than eggs themselves. heart disease. The U.S. Department of Agricul- good. centration of cholesterol is the egg. Eggs do have some positive characteristics. ture agrees, and, accordingly, in its latest di- Some studies have suggested that eggs will There are at least four factors that support They are high in protein and low in fat, only etary guidelines, released in January 2016, no produce heart disease in herbivores. But ani- the idea that cholesterol causes atherosclero- a third of which is saturated. They are rela- longer recommends an upper limit for choles- mals in those tests (rabbits and monkeys) sis: 1) atherosclerosis is easy to produce ex- tively low in calories (about 75), high in min- terol in one’s diet. could receive the equivalent of 3,000 mg or perimentally. If a high-cholesterol diet is erals and vitamins. Nevertheless, eggs, in my Two important points: First, there is no di- more of dietary cholesterol a day, whereas an given to herbivores (rabbits, monkeys), plaque view, should not be eaten daily. The risk is not rect link between cholesterol levels in the egg typically has about 200 mg of cholesterol. develops rapidly in the animals’ arteries; 2) worth the pleasure. blood and eating foods with cholesterol. Cho- It also has been observed that societies with cholesterol is present in the arterial plaques; I recommend limiting eggs to special occa- lesterol that we eat doesn’t necessarily end up high blood-cholesterol have far greater risk of 3) societies with high blood-cholesterol levels sions and taking a statin—a miracle drug that in our blood because our digestive system heart disease than societies with low blood- have far more atherosclerotic events than so- is to atherosclerosis what penicillin is to in- eliminates most of it. The average person ab- cholesterol. But diets in the higher-risk coun- cieties with low blood-cholesterol levels; and fectious diseases—along with the egg! sorbs into their bloodstream only 20% to 60% tries tend to be high in saturated fat, which is 4) lowering the blood cholesterol level, and of the cholesterol they eat, and some absorb known to increase LDL cholesterol. specifically the low-density lipoprotein, or Dr. Roberts is executive director of the as little as 5%. Some critics have noted, correctly, that my LDL, cholesterol level, lowers the frequency of Baylor Scott & White Heart and Vascular Second, our bodies naturally produce and studies have been funded by the Egg Nutrition atherosclerotic events. Institute at Baylor University Medical regulate levels of cholesterol, so even vegans Center, an organization that supports the egg The typical “large” egg weighs about 60 Center; dean of the A. Webb Roberts Center who don’t consume any cholesterol will al- industry. The center never analyzes my data. grams (2 ounces) and contains 215 to 275 for Continuing Medical Education for Bay- ways have cholesterol in their blood. But even My group and I do all of the statistics, analy- milligrams of cholesterol. The American lor Scott & White Health System; a profes- if a person consumes high amounts of choles- sis and data interpretation. Also, despite Heart Association recently withdrew its rec- sor at Texas A&M College of Medicine, Dal- terol, the body has a mechanism to compen- claims that it is impossible to isolate effects ommendation to limit the dietary intake of las Campus; and editor in chief of the sate by instructing cells to make less choles- of single foods in studies using humans, many cholesterol to less than 300 mg in healthy American Journal of Cardiology and Baylor terol, keeping the concentration of blood clinical interventions have successfully com- adults and less than 200 mg daily in adults University Medical Center Proceedings. cholesterol the same. pared the effects of eating eggs with the ef- with a “high risk” of an atherosclerotic event, Email him at [email protected]. In some cases, eating eggs can raise high- fects of eating another food, or no eggs at all. because many studies have shown no effect One epidemiological analysis determined that or little effect on the blood LDL cholesterol there is no difference in risk when comparing levels for adults who eat no more than one Growing Appetite Biggest Producers people who ate no eggs with people who ate eggaday. U.S. egg consumption per capita The top 10 egg-producing states, based on number more than seven eggs a week. But is this result indicative of the harmless of hens in millions Health benefits of eggs include the follow- effect of dietary cholesterol on our arteries? 300 ing: Whole eggs contain vitamin D, which Or does it reflect the difficulty in doing stud- Iowa 55.3 plays a role in bone health and protects ies focused on a single food item? Many stud- against diabetes and heart disease. Egg pro- ies are only several weeks in duration, and 250 Ohio 31.5 tein helps maintain muscle strength at all some very-long-duration studies—longer than ages, and decreases muscle loss in the elderly. 20 years—usually don’t take into consider- Indiana 31.2 It also has been reported to prevent malnutri- ation changes in dietary cholesterol intake 200 tion in low-income families. Eggs contain lu- over time or consumption of cholesterol in Pennsylvania 26.1 tein and zeaxanthin, which help prevent age- processed foods, or cakes, or cookies, or 150 related macular degeneration, the main cause salad dressings. Many studies relied on self- Texas 17.8 of blindness in the elderly. reporting of the eggs consumed. Eggs are also a very good source of choline, Maria Luz Fernandez and her colleagues at 100 Michigan 15.2 an essential nutrient that protects against the University of Connecticut have done sev- cognitive impairment and fatty liver. Ameri- eral studies, each involving 50 or fewer California 13.9 cans typically don’t consume the daily re- healthy or unhealthy adults or children, de- 50 quired intake for choline, thus egg consump- termining the effect of eating one, two or Minnesota 10.7 tion would alleviate this problem. three eggs daily for one to three months (usually four to six weeks). They have found 0 Dr. Fernandez, who has a Ph.D., is a Georgia 9.4 that, although the LDL cholesterol may in- ’102009’11 ’12 ’13 ’14 ’15 ’16 ’17 ’18 professor in the department of nutritional crease, the HDL cholesterol, “good” choles- sciences at the University of Connecticut, Note: Figure for 2018 is an estimate. Figures are total egg production Nebraska 7.5 terol, does as well, such that the ratio be- minus exports plus imports, divided by total population. Storrs. She can be reached at tween the two is usually unchanged. And Source: American Egg Board THE WALL STREET JOURNAL. [email protected]. Scientists Put Sound Under the Microscope

They are looking at what kinds of tists plan to create a real-time noise map with noise most annoy us—and what the data to better identify hot spots and make it easier for the city’s environmental protection kinds can make us feel better officials to uncover and resolve problems. Using ‘soundscapes’ BY ADRIENNE ROBERTS Some smaller cities, meanwhile, are attempting to improve residents’ health and PUBLIC OFFICIALS and scientists are increas- quality of life by creating “soundscapes.” ingly absorbed in the study of how sound af- Rex Parris, mayor of Lancaster, Calif., hired fects our health. the U.K.-based sound consultant Julian Trea- Negative effects, such as stress from the sure to create a composition of music and bird roar of traffic, are getting most of the atten- sounds to play on speakers along a mile of the tion. But sound experts also are looking at city’s main street. Mr. Parris says people ini- ways that sound can be engineered to both tially thought he was “mentally deranged” but soothe spirits and serve safety needs. have since warmed to the sounds. Next, he Much of the concern is driven by the increas- plans to install a trolley on the same street ingly urban, and noisy, environments in which and remove vehicles so that traffic noise so many people live. A World Health Organiza- doesn’t interfere with the audio. tion study in 2011 made the case that at least Efforts elsewhere to reduce noise caused by one million West Europeans could expect to lose traffic include experiments by the states of on average about a year of good health over the Texas and Arizona with different types of high- course of their lives due to traffic noise. Traffic way pavements in a bid to reduce tire noise.

noises cause high blood pressure, interrupt GETTY IMAGES Sound innovations by the auto industry itself, sleep and increase stress, the study found. Residents of Boston’s Jamaica Plain neighborhood think noise levels are lower than they really meanwhile, could contribute to public safety Noise at street level in New York City was are. One reason may be the soothing effects of Southwest Corridor Park. and health. Because electric vehicles are silent found to average about 73 decibels in a 2015 when traveling at low speeds, they sometimes study published in the journal Environmental she says. For instance, Ms. Walker has found plant trees and take other inexpensive measures pose a danger to cyclists and pedestrians. Regu- Health. The Environmental Protection Agency that sound frequency—the speed of the vibra- to make residents happier and more relaxed. lations in the U.S. and elsewhere are expected has found that outdoor noise levels above 55 tion that determines the pitch of the sound—is In New York City, where noise is one of the soon to require that electric and hybrid vehicles decibels can be dangerous to one’s health, and what bothers residents the most, such as when most frequent complaints on the city’s 311 make noise. Thus, automotive engineers and de- that chronic exposure to noise levels above 70 people waiting at a bus stop can feel the rever- hotline, scientists at New York University’s signers are trying to create an appropriate and decibels can lead to hearing loss and health berations when a bus passes by. Center for Urban Science and Progress, or unique sound. problems. Ms. Walker has designed an app, called CUSP, are measuring noise levels in Manhat- Nissan Motor Co. hired the composer Joel NoiseScore, that she hopes will help her mea- tan, Queens and Brooklyn using small record- Beckerman, founder of the firm Man Made Mu- Layers of noise sure detailed noise levels in cities around the ing devices installed on buildings. More than sic, to create a sound for its electric vehicles. As a result, some researchers are gathering world. In addition to measuring noise levels, 50 sensors have been installed so far. Mr. Beckerman, whose client list includes data that they hope can help bring urban noise the app shows the precise location and gives Justin Salamon, a senior research scientist AT&T Inc. and “The CBS Evening News,” ulti- to a healthier level. Erica Walker, for one, a re- users the ability to report the event with pho- at CUSP working on the project, says that mately created a sound that he says has warm, searcher in the Boston University School of tographs, video and descriptions of the noise. while New York has a fairly advanced noise- inviting and musical qualities—a sound that is Public Health, is attempting to compile de- While the app is still in the pilot phase, Ms. control program compared with other cities, it recognizable as a vehicle but not unpleasant to tailed sound maps of cities around the world, Walker says she envisions the data it gathers is difficult to enforce noise violations. By the pedestrians. starting with Boston. She has recorded sound being used by city officials around the world time the city’s Department of Environmental He says when he was designing the sound, levels across the city and interviewed resi- to better understand and manage noise in their Protection sends an inspector to the scene of he was thinking both about the noisy city land- dents about what noises and neighborhoods cities and to improve residents’ health. a complaint, he says, the noise is often gone. scape of today but also a quieter future. are the worst. For instance, in Boston neighborhoods with The sensors can help remedy this, Mr. Sala- The vehicle of tomorrow, he says, should be Ms. Walker says that with her research, she lots of parks and trees, residents report less mon says, by constantly measuring noise levels “enriching the aural environment.” also wanted to “take a step back and peel back noise and related stress than they do in some and recording sounds. The sounds are fed into the layers of what is noise.” other neighborhoods—even when measured computers that use machine learning to identify Ms. Roberts is a reporter for The Wall “I found that there are components of noise levels aren’t much different. In response, the sources of noises, whether it is a dog bark- Street Journal in Detroit. She can be reached sound we don’t regulate and don’t measure,” Ms. Walker says, Boston and other cities could ing or a construction worker drilling. The scien- at [email protected]. THE WALL STREET JOURNAL. NY Monday, September 17, 2018 | R5 JOURNAL REPORT | INNOVATIONS IN HEALTH CARE Health Care Looks Beyond Medicine

Providers put more and said they went on to have their focus on social issues— needs met with a control group of such as housing and people who reported their needs weren’t met. By comparing medical nutrition—that can expenses for the year before and the make fighting disease year after the referrals, they found more difficult that those saying their needs were met had an 11% reduction in second- BY BRIAN GORMLEY year total health-care costs, while callers who said their needs remained unmet had a 1% decrease. THE LATEST EFFORTS by health or- Why callers who said their needs ganizations to fight disease extend remained unmet had lower health well beyond medical care. costs is unclear, but one possibility is With a growing body of research that they faced obstacles not mea- showing that social and economic sured in the study that hindered forces play a significant role in their use of social and medical ser- health, many medical groups are in- vices, the authors said. vesting in programs to help needy Health system Geisinger, based in patients secure basics such as afford- Danville, Pa., has seen savings from a able housing, transportation and nu- program providing free nutritious tritious food. By tackling such non- foods, along with other health ser- medical issues, often called the social vices, to adults with Type 2 diabetes determinants of health, they aim to who need food assistance. Geisinger, ease the burdens that make battling which is funding the program, saw disease more difficult. medical costs drop by two-thirds on

Their efforts coincide with the GEISINGER average for participants in the pro- shift toward value-based health care Geisinger health system in Pennsylvania provides nutritious foods to some adults with Type 2 diabetes. gram, according to an article co-writ- spurred by the Affordable Care Act. ten by Andrea Feinberg, chief health Things like bundled payments—in at 40%, while healthy behaviors and programs that will have the greatest medical appointments and the re- officer for the Steele Institute for which providers receive a single sum physical environment account for the effect on health outcomes and costs. sulting delays in care cost the U.S. Healthcare Innovation at Geisinger, for an episode of care—have incen- rest, the group estimates. (It derived Community health workers, case medical system $150 billion a year, and published in Harvard Business tivized the medical community to fo- the percentages by considering, managers and nurses at United- the American Hospital Association Review last year. cus on patient outcomes instead of among other things, the historical in- Healthcare, the health-benefits and reported last year. Geisinger plans a larger study to performing procedures. Medicare fluences these forces have had on care-services arm of UnitedHealth Rush University Medical Center in further evaluate the program. penalties for excessive hospital read- health, along with its own analysis of Group Inc., screen patients for social Chicago is using technology from lo- missions, in effect since 2012, also publicly available data, says Director needs and use software from New cal startup Higi to learn about the Community investment have encouraged a closer look at so- Julie Willems Van Dijk.) York startup Healthify to connect social needs of the community Some health systems are even in- cial forces contributing to disease. “We’ve placed a high value and them with community groups who around the hospital. Higi kiosks in vesting in affordable housing, bet- have invested heavily in building our can assist them and coordinate with pharmacies and other community lo- ting it will lead to lower health costs Thinking outside the clinic care-delivery system,” says Paul cations allow consumers to check in the communities they serve. “This movement toward paying for Roth, head of the University of New Several studies their blood pressure, pulse and other In May, Kaiser Permanente, Oak- outcomes is making people raise their Mexico Health Sciences Center. health measures. The stations also land, Calif., said it would invest up heads up from just looking inside the “We’ve shortchanged our health out- tie social needs to can be used to gather data about us- to $200 million in projects to pre- clinical walls to looking outside to comes by neglect of these other fac- poor health and ers’ housing, transportation and serve and construct affordable hous- see what else can be done,” says tors.” other social needs. Rush uses the in- ing and revitalize neighborhoods, Sanne Magnan, a senior fellow with Several studies tie social needs to heavy use of formation to connect people with among other things. SBH Health HealthPartners Institute and an ad- poor health and heavy use of medi- medical services. community resources in an effort to System in New York is building a junct assistant professor of medicine cal services. Unstable housing, for resolve problems that contribute to Bronx development with affordable- at the University of Minnesota. example, is associated with in- illnesses or interfere with treatment. housing units, a fitness area, phar- The U.S. health-care system is creased risk of diabetes-related Some research indicates that macy and rooftop farm, with a goal geared toward medical treatments, emergency-department and inpatient service providers to ensure their medical costs decline when patients’ of improving health in the area and yet an analysis of the external forces use, according to a study published needs are met, says Jeffrey Brenner, social needs are met. WellCare cutting medical costs. that contribute to a population’s in May in the journal Diabetes Care. senior vice president, clinical rede- Health Plans Inc., based in Tampa, And Boston Medical Center in De- health found that clinical care ac- Similarly, homeless people have fre- sign, for UnitedHealthcare Commu- Fla., operates a call center for people cember pledged to invest $6.5 mil- counts for just 20%, according to quent hospitalizations and emer- nity&State.“Whenapatientgets seeking help with social needs such lion in affordable housing by sup- County Health Rankings & Roadmaps, gency-department visits, according admitted to the hospital because as transportation and housing. Call- porting community partnerships. a collaboration between the Robert to a 2015 paper published in the they couldn’t pick up their meds or center staff refer callers to commu- Investments include a $1 million Wood Johnson Foundation and the American Journal of Public Health. are homeless, that’s a waste of soci- nity organizations. fund that provides grants to groups University of Wisconsin Population Efforts by health systems to ad- etal resources,” he says. A study published in the journal that help people avoid eviction. Health Institute. dress patients’ social needs are still Others are using technology from Population Health Management this Social and economic forces such as in the early stages, says Dr. Magnan. Boston-based Circulation Inc. to co- year examined the program’s finan- Mr. Gormley is a reporter for income, education and community Health organizations are testing a ordinate nonemergency transporta- cial impact. Researchers compared The Wall Street Journal in Boston. safety exert a much greater influence, variety of approaches to find the tion for patients who lack it. Missed callers who received social referrals Email [email protected].

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North America China Cannes Africa Arabia Latin America Asia Paciﬁc 24 - 27 Sep 31 Oct - 02 Nov 03 - 06 Dec 10-12Apr 28 - 29 Apr 14-17May 27-30May 2018 2018 2018 2019 2019 2019 2019 R6 | Monday, September 17, 2018 THE WALL STREET JOURNAL. JOURNAL REPORT | INNOVATIONS IN HEALTH CARE Cancer Patients Get Aid From Coaches Learn, Bike, Then Sleep Advisers can help with the challenges that arise A new study offers a during and after treatment clue to how to best retain a new skill BY BARBARA SADICK BY LISA WARD TOM LOESWICK has faced a series of illnesses in his life, but when he SCIENTISTS ARE discovering new was diagnosed with stage 3 lym- connections between learning, ex- phoma in 2012 at the age of 61, he ercise and sleep. felt helpless, emotionally drained A new study suggests that and disconnected. when learning a new task, people Overwhelmed, Mr. Loeswick turned improve the long-term retention to cancer coach Shariann Tom. Ms. of those skills when they exercise Tom, a five-time cancer survivor and intensely for as little as 15 min- former executive coach, helped Mr. utes immediately afterward—pro- Loeswick understand the emotions he vided this is followed by a good was feeling—especially anger—and night’s sleep. The study was pub- helped him move forward, he says. lished in March in the medical “I was angry at being sick, and I journal NeuroImage. was angry at God,” says Mr. Loeswick, “Very little research looks at now a coach for people with chronic the relationship between exercise, illnesses such as cancer and diabetes sleep and memory formation, in Los Gatos, Calif. “But with Shari- though there is clearly a connec- ann helping me prevent myself from tion between the three,” says sinking into deep potholes, I was able LISA WISEMAN FOR THE WALL STREET JOURNAL Marc Roig, one of the March pa- to make it through the experience.” When Tom Loeswick was overwhelmed by his cancer diagnosis, a coach helped him come to terms with it. per’s co-authors and an assistant For a growing number of cancer professor at McGill University’s patients, cancer coaches—some of charging for it. became a trainer for breast-cancer $100 per hour. School of Physical and Occupa- whom have had cancer themselves— “If the hospital oncology team is visitation programs. During that Ms. Tom, the coach who helped Mr. tional Therapy, offer help with the physical, emo- doing a good job, patients should be time, Ms. De Long says, she discov- Loeswick, is a co-founder of Cancer The findings could help speed tional and intellectual challenges that getting all the medical and support- ered that the emotional challenges Journey, a San Francisco-based com- up recovery from stroke or injury, can arise during and after treatment. ive services they need before, during of recovering from cancer are uni- pany that coaches its clients—pa- or be used to assist anyone learn- The coaches give advice in such areas and after treatment without having versal. tients, survivors or caregivers—on ing a new motor skill, the scien- as nutrition, exercise, weight manage- to pay for it,” says Lillie Shockney, “Survivors who are ending treat- dealing with the challenges of cancer. tists involved say. ment and other health issues. They an oncology nurse navigator and ad- ment and creating new normal lives The service, which started in 2007, of- In the study, participants also address spiritual concerns and ministrative director of the Johns benefit most from my work,” she fers counseling by phone or in person learned to use a joystick-like de- the nuts and bolts of going back to Hopkins Breast Center in Baltimore. says. “The residual trauma of the if a coach is available where a client vice called a dynamometer to work after treatment is done. Cancer coaches, though, say hospi- chaotic experience and loss of regu- lives. Clients generally use the service play a videogame. Immediately tals sometimes fall short, which is lar contact with the health-care team three times a month for three to six afterward, half the participants Help focusing where they come in. “Hospitals often months, and, depending on the type rested, while the other half biked “It’s a hard feeling when cancer have limited resources, so when of coaching, pay $100 to $167 for each intensely for 15 minutes. For gets better and support disappears,” coaches are available to support pa- What Next? 45-minute session, Ms. Tom says. The those who underwent the short says Dean Felsher, a professor of on- tients in taking a more active role in More cancer patients are living longer, company also trains coaches, with bout of exercise, Dr. Roig says, cology at the Cancer Institute at their cancer care, it benefits every- creating demand for services beyond training typically taking 10 months the researchers observed the Stanford Medicine, the medical one,” says the American Cancer Soci- their initial treatment. The ﬁve-year and costing $9,000. brain operating with increased ef- school of Stanford University. ety’s Dawn Wiatrek, strategic direc- survival rate for people diagnosed with When Ms. Tom was first diag- ficiency, which may have helped “That’s when a person needs to fo- tor, cancer treatment access. cancer in the following years: nosed with cancer in 1998, she says, them retain the skill they just cus on how they have been affected The society recently received a she couldn’t cope or figure out how learned. The study was the first 70% by the experience and its treatment; $1.5 million grant from the Merck to proceed with a meaningful life, to show how exercise affects the cancer coaching is a good option to Foundation to offer coach training to and her family, friends and cancer brain after motor learning. do just that.” patient navigators at cancer centers. 65 professionals were unable to help Eight hours later, the research- For patients and families, however, “We are providing our navigators her. She later discovered life coach- ers asked all of the participants to a lack of regulation and certification with tools that allow them to better 60 ing and entered the Coaches Train- repeat the task they had learned, can make it challenging to identify tailor the support they are providing ing Institute. Not long after that, she and again, 24 hours later. At the and assess such specialists. What’s to patients, while encouraging pa- 55 says, she and co-founder Keri Leh- eight-hour mark there was no dif- more, their services can be expen- tients to become more engaged in mann created Cancer Journey. ference between the group that sive, costing $100 to $300 a session, managing the barriers they are fac- 50 Alison Gause, an oncology patient had exercised and the group that and typically aren’t covered by insur- ing in accessing quality care,” Ms. navigator at the Cancer Institute of had rested. But 24 hours later, ance. In the U.S., there are several Wiatrek says. “This approach offers 1985 ’90 ’95 ’00 ’05 ’10 Marin General Hospital in Marin the skill-retention rate was about groups that offer training and certifi- benefits for the patient, the naviga- Source: National Cancer Institute County, Calif., says she sometimes 25% better for the group that had cation for health and other kinds of tor and the health system.” THE WALL STREET JOURNAL. refers patients to cancer coaches exercised, compared with the coaching. A recent partnership be- when they are finished with treat- group that had not exercised. tween the International Consortium ‘Residual trauma’ are significant…. The desire to be ment. Because cancer patients are Past research shows that if for Health and Wellness Coaching In addition, there are those in- healthier to prevent recurrence, often faced with their own mortality, someone learns a motor skill dur- and the National Board of Medical stances where individuals seek out, make the most of their time and give they want to move forward in ways ing the day, the motor cortex, the Examiners launched a National Board or are referred to, independent back in some way are fairly universal that are new and different from be- region of the brain associated for Health and Wellness Coaching to coaches for extra help. themes for survivors, who may not fore, Ms. Gause says. with executing movement, is ac- create requirements and standards. Paula Holland De Long of Fort know how to successfully make “It’s about being mindful of how a tive at night during certain stages The International Coach Federation is Lauderdale, Fla., certified by the In- changes,” she says. person wants to live after treatment of sleep. Dr. Roig says he wants to another certification board. But these ternational Coaching Federation as Ms. De Long gets referrals from is over,” she says, “and working with do a follow-up study to better groups don’t offer certifications spe- an associate certified coach, helps nurses and social workers at hospi- a trained coach can help people tap understand how this contributes cifically in cancer coaching. people recover from cancer. Ms. De tals in south Florida and other into their own inner strengths and to memory formation. In addition, some critics argue Long, a cancer survivor herself, says states. After an initial assessment, resources.” that cancer centers already provide she got her start as a volunteer for she says, her client relationships Ms. Ward is a writer in much of the support that cancer the American Cancer Society in typically last from 90 days to 18 Ms. Sadick is a writer in New Mendham, N.J. She can be coaches say they offer without Texas, where, among other roles, she months, and she charges around York. Email [email protected]. reached at [email protected].

First-Aid Training How to Help Mental Health First Aid’s basic plan, Targets Mental Health known as Algee, as taught in its courses Assess for risk of suicide A growing program teaches people to identify and respond A or harm to others who are in emotional distress Listen BY BONNIE MILLER RUBIN “There’s an appetite for knowledge L nonjudgmentally and to have the skills to help someone in need.” Give reassurance and FIRST-AID TRAINING equips anyone G information to help people who are injured or A debate on efficacy physically ill. Which raises the ques- The program’s impact on mental tion: Could mental-health first-aid illness, however, is hard to measure. E Encourage appropriate training enable anyone to help peo- Bruno Anthony, a professor of child professional help ple with panic attacks, suicidal and adolescent psychology at the thoughts or hallucinations? University of Colorado School of Encourage self-help and “I have a lot of friends who strug- Medicine, published a study on E other support strategies gle with depression and anxiety,” MHFA earlier this year in the Ameri-

says Agata Jasinska, a nanny and can Journal of Health Promotion. TAYLOR GLASCOCK FOR THE WALLSource: STREET JOURNAL Mental Health First Aid USA part-time catechism teacher in Chi- While participants showed an almost Myra Rodriguez says people want ‘the skills to help someone in need.’ THE WALL STREET JOURNAL. cago. “If there’s any way we can 30% increase in knowledge about help,” she says, “we should train mental-health issues and confidence funding,” says Peter Earley, an activ- pleting work, there’s a big difference last fall for resident assistants—stu- ourselves.” in offering assistance, there’s scant ist who writes frequently about the between saying “What’s wrong with dents who advise dorm residents on Ms. Jasinska was one of 14 people data on how such interventions ben- mental-health system. “Just as you?” versus “I’m concerned about virtually everything, from roommate who paid $65 to attend a recent efit the recipients, says Dr. Anthony. knowledge about the AIDS epidemic you. I’ve noticed a change. Is there problems to planning dorm activi- eight-hour class in Chicago offered “The impact on those who are prompted more research and treat- something you’d like to share?” says ties. by Mental Health First Aid, a fast- touched by MHFA trainees is still to ment.” Betsy Schwartz, vice president for The academic environment can be growing program that trains people be determined,” he says. Linda Rosenberg, chief executive public education and strategic initia- intense, filled with high achievers to identify, understand and respond Some critics say the program di- of the National Council for Behav- tives at the National Council for Be- who hold themselves to rigorous to others who are in emotional dis- verts attention and resources from ioral Health, which sponsors MHFA havioral Health. “One sounds accusa- standards, says Hamilton Wilson, tress—whether on the job, in com- efforts to help those with severe training nationwide, rejects the idea tory, while the other is creating who is starting his second year as a munity spaces, on the streets, or at mental illness. The national priority, that the program siphons attention empathy without being overly intru- resident assistant at the university. home. they say, should be removing barri- and resources away from other men- sive.” A senior majoring in sociology, Mr. Since its introduction in the U.S. a ers to care, such as a shortage of cli- tal-health issues. “Are we so poor a At the conclusion of the program, Wilson is responsible for 100 stu- decade ago, Mental Health First Aid, nicians, insurance disparities, and country that we accept the forced trainees leave with phone numbers dents on three dorm floors. He has or MHFA, has trained more than one laws that make it almost impossible choice of education versus treat- for referrals. They are reminded to never dealt with a suicidal student, million people across the country. to compel someone to get treatment ment?” she asks. “Do we do that use their skills to de-escalate situa- he says, but the MHFA training has Since 2014, the Substance Abuse and “Identifying mental illness is not with other diseases? I understand tions, but to never put themselves at still come in handy—in helping not Mental Health Services Administra- the problem; getting services is,” the dedication to people with the risk. just students, but also friends and tion, part of the U.S. Department of says DJ Jaffe, who runs Mental Ill- most serious mental illness, but I re- “If you take CPR, you are not family. “I was able to talk them Health and Human Services, has pro- ness Policy Org, a nonprofit that fuse to believe that all else needs to trained to be a cardiologist; you are through what they were feeling,” he vided more than $15 million to state provides policy analysis. As for the be sacrificed.” learning how to help someone until says. and local education agencies to im- MHFA program, “there’s absolutely In a typical MHFA training ses- they can get professional care,” Ms. The training also has given him plement MHFA programming. no evidence on how this affects the sion, participants role-play various Schwartz says. resources and people to turn to for “People understand that mental- very people they’re trying to help,” scenarios, following a template for help. “When one of those situations health problems are common,” says he says. how they should respond called Al- Help for students comes up, I can always reach out to Myra Rodriguez, who has conducted Supporters of the program stress gee, for the five steps it includes: as- At the University of Chicago, someone who is better equipped,” he 30 MHFA courses in Chicago since the value of educating the general sess for risk; listen nonjudgmentally; more than 500 staff, faculty and stu- says. “The community is always becoming a certified instructor last population about mental-health dis- give reassurance and information; dents have taken the MHFA course there.” year. orders. “Making Americans aware encourage professional help when since 2015, according to Julie Ed- “Everyone has been touched by it, that mental illnesses are exactly needed; and encourage self-help. wards, director of health promotion Ms. Rubin is a writer in whether it’s your own experience or that—illnesses—and that people can For example, if a co-worker seems and wellness at the university. She Chicago. She can be reached at someone close to you,” she says. and do recover should lead to better unusually withdrawn or isn’t com- says the class became a requirement [email protected]. THE WALL STREET JOURNAL. Monday, September 17, 2018 | R7 JOURNAL REPORT | INNOVATIONS IN HEALTH CARE A New Solution to Cartilage Damage Instead of surgically fusing bones or replacing joints, some doctors are opting for synthetic substitutes

BY LAURA JOHANNES Research Institute at the Hospital for Special Surgery in New York. Re- cently released five-year clinical-trial CARTILAGE, a rubbery tissue that results on one product showed no ill acts as a cushion between bones of effects, but safety issues from having joints, doesn’t come with a lifetime foreign objects in the body can warranty. sometimes be rare, so additional When it wears down with age, or larger, studies are needed to be sure is damaged, the pain may be so se- of safety, Dr. Lyman adds. vere that the patient ends up fully replacing a joint such as a knee. For Strong but soft the big toe, a common option is to To replace cartilage, a material surgically fuse bones together, re- must be strong enough to withstand ducing pain but leaving the patient forces on a joint, but soft enough so with no motion in the joint. it doesn’t destroy surrounding tis- A disarmingly simple solution, re- sue, says Gordana Vunjak-Novakovic,

placing the cartilage with a synthetic a biomedical engineer at Columbia COURTESY OF CARTIVA(2) substitute, is rapidly coming into its University In New York. The substi- Cartiva cartilage is inserted (below left) into a hole drilled into the bone behind the big toe, cushioning the joint. own—with one product for big-toe tute material also must be porous arthritis already on the U.S. market, and behave like a sponge—releasing findings earlier this year described a the surgeries. A small part of the im- heels more than 2.5 inches—Cartiva and alternatives for the thumb, knee fluids when it is pressed, then recov- blend of polyvinyl alcohol and strong plant protrudes from the bone, serv- may be the best option, he adds. and shoulder either being tested in ering by reabsorbing them. fibers made from the same material ing—as natural cartilage would—as Cartiva is also being tested for trials or being used by doctors in Eu- Cartiva, a cylinder about as as bulletproof vests. Scientists hope a spacer in the joint. thumbs that are painful and short- rope. Doctors who have begun put- squishy as a pencil eraser and some- eventually to commercialize the In data from a Cartiva-funded ened by arthritis, says Phillip Sauvé, ting such implants in their patients what larger, gained Food and Drug blend, says Nicholas Kotov, a Univer- study presented at the American an orthopedic surgeon at Queen Al- say they can provide faster recovery Administration approval in 2016 for sity of Michigan engineering profes- Foot & Ankle Society meeting in exandra Hospital in Portsmouth, than traditional surgeries, and have treating big-toe arthritis. Dutch med- sor and lead author of the paper. Boston in July, about 15% of the England. The implant alleviates pain, other advantages—such as potentially ical device company Wright Medical BioPoly LLC, Fort Wayne, Ind., is original 152 patients did not get and restores the thumb to its normal delaying a full knee replacement or Group NV agreed last month to ac- rolling out partial knee and shoulder maintain the hoped-for pain relief length and gives patients more le- allowing the patient to retain motion quire the company behind it, Cartiva replacements in Europe. Like other and ended up converting their verage for tasks such as turning a of the big-toe joint, handy for some Inc., of Alpharetta, Ga., for $435 mil- partial joint replacements, the com- Cartiva implant to a fusion by the key in a door, says Dr. Sauvé, a paid sports and wearing high heels. lion. The product, made from 60% pany’s implants attach to bone with five-year mark. But there were no trainer of surgeons for Cartiva. A toe joint that a metal plate. But molded to the safety concerns from the material, For the knee, Cartiva isn’t mar- can bend after a BioPoly metal is a plastic blended and of those who kept it, 97% had keted in the U.S., but the same mate- synthetic cartilage with hyaluronic acid, a molecule significantly reduced pain, and 93% rial is being used by some surgeons implant has “a lot present in natural cartilage. The im- said they would have the operation world-wide. An 18-person study pub- more function plant attracts joint fluid to help it again, according to study co-author lished in the European Review for than one that’s behave more like real cartilage, says Judith Baumhauer, professor and as- Medical and Pharmacological Sci- rigid and stiff” af- Herb Schwartz, president and sociate chairwoman of orthopedic ences found that the implant helped ter a fusion, says founder of the company, adding that surgery at the University of Roches- improve knee function and pain for Michael Campbell, BioPoly hopes to bring its products ter Medical Center in Rochester, N.Y. as long as eight years. a surgeon in Vir- to the U.S. She is a paid consultant to Cartiva. And earlier this year, Brazilian sci- ginia Beach, Va. Cartiva is gaining popularity as a entists published results of a two- “That makes a big treatment for arthritis of the big The fusion option year, 38-patient study in patients with difference for toe—a condition that, according to Some doctors caution that fusion knee arthritis, finding that Cartiva things like yoga, scientific literature, affects 2.5% of provides better pain relief and is provided equivalent pain relief and Pilates, running.” people over age 50. About 15,000 im- more reliable. Glenn B. Pfeffer, direc- improvement in daily functioning as But others urge plants have been performed world- tor of the Foot and Ankle Program at another alternative, implantation with caution, because the traditional sur- water and 40% polyvinyl alcohol— wide, says Cartiva Chief Executive Cedars-Sinai in Los Angeles, says the patients’ own cells. The Italian geries may provide better pain relief, the material in soft contact lenses— Tim Patrick, who adds that the prod- that while a fusion “sounds horrible,” study was not funded by Cartiva; a and have longer-term data behind is “very promising,” but longer-term uct typically costs $3,500 in the U.S. patients who choose it can perform former distributor for the company them. data is needed to prove that it main- To insert Cartiva in the big toe, nearly all daily activities just fine— provided product and some funding “What I’m worried about is the tains its properties over time, Dr. surgeons drill a hole in the metatar- including walking, dancing and dou- for the Brazilian study, says the long-term risks about having [syn- Vunjak-Novakovic says. sal bone at the base of the big toe. bles tennis. However, if it’s important Cartiva CEO, Mr. Patrick. thetic cartilage] in the body,” says Other options to replace cartilage No glue or screws are required as to patients to have toe extension for epidemiologist Stephen Lyman, an are on the horizon. An article in Ad- the implant fits snugly, says Dr. activities such as yoga or competi- Miss Johannes is a writer in associate scientist at the Healthcare vanced Materials summarizing lab Campbell, who has done about 80 of tive sports—or if they want to wear Boston. Email [email protected].

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The KardiaBand (far left) A Status Report collects heart data. Dexcom’s glucose monitor (left) uses a tiny under-the- skin sensor (not shown). On Health Apps An app in development can turn some smartphones (below) into blood-pressure The newest wearable monitors track heart health, monitors. monitor glucose levels and measure blood pressure. But which ones actually do what they say? “and a lot of people in this world BY DEBORAH GAGE which promises to improve detection have high blood pressure and don’t and treatment of heart disease. know it,” says Ramakrishna Mukka- For instance, devices that track mala, a professor of electrical and THE EXPLOSION in smart devices— heartbeat data can help doctors computer engineering at Michigan phones, watches, fitness gadgets and identify atrial fibrillation, a leading State University. the like—has unleashed a wave of cause of heart failure and strokes. Recently, a group he led created a apps designed to manage chronic ill- With a-fib, the upper two chambers way to take blood pressure with a nesses, detect behavioral diseases of the heart beat erratically and at phone, using the same principle as and manage pain. Most recently, Ap- dangerously high speeds. Since the blood-pressure cuff, which varies ple announced that apps due later symptoms come and go, it can be pressure on the arm. In a study pub- this year will allow its Series 4 hard to detect, but watches worn for lished in March, the group used a watches to perform electrocardio- long periods have a chance of spot- modified smartphone case with two gram readings, or ECGs, and notify ting it outside of a doctor’s office. sensors, one that measured blood vol- users of irregular heart rhythms. An ECG, the standard method of ume and one that measured applied The problem for consumers is detecting a-fib, requires placing 12 pressure. Users steadily pressed their knowing which apps—if any—actu- electrodes on a patient’s body. The fingertips against the case to get a ally work. Apple Watch Series 4 will reading. The data was transmitted via The Food and Drug Ad- have electrodes built into with the algorithm’s 93%. Inc. that the FDA authorized for Bluetooth to an app, which calculated ministration cleared the the watch’s digital crown, “It’s a reminder for all of us in marketing in March uses a sensor blood pressure and displayed it. ECG app and irregular- which users touch for 30 dealing with digital health that the about the width of a human hair that In September, however, a proof- rhythm notification fea- seconds after opening patient is an active component of sits just under the skin and detects of-concept study done by Dr. Mukka- ture on the Apple the app to get an ECG the equation and is part of the end glucose in the interstitial fluid. It mala and another set of authors watch, but noted that reading, Apple says. results on how good these record- generates an electrochemical signal showed that the same finger-press- the apps aren’t in- Another device, the ings are,” says Khaldoun Tarakji, an that’s read by a processor and con- ing method can be applied to optical tended to replace tradi- KardiaBand watch- electrophysiologist who led the verted into data that’s transmitted and force sensors that are already tional diagnosis meth- band, also offers ECG study. Dr. Tarakji says that with to a Dexcom receiver or a smart- built into some phones—one sensor ods. The agency said capabilities and was smartphone-based electrocardio- phone or watch. In 2016, a previous for taking selfies and one for dis- the ECG data displayed cleared by the FDA in gram monitors, the clinic can access generation of monitors was recalled playing a 3-D touch feature. on the Apple watch is November. It was recordings of patients’ heart by the FDA because the receiver’s The group has developed an for informational pur- most effective in de- rhythms no matter where they are. alarm didn’t sound when the glucose iPhone app that guides fingertip poses only and isn’t in- tecting a-fib when Doctors can also use the monitors to reading was high or low. But the placement and calculates blood pres- tended to be inter- physicians looked at diagnose patients with intermittent company has since developed new sure. Comparing the results against preted by the user the results, rather than episodes of a-fib, which are hard to technology, says CEO Kevin Sayer. a traditional blood-pressure cuff, the without consulting a health- relying solely on the catch, and follow up on patients who The new monitor app was less accu- care professional. watch’s algorithms, accord- have had ablations, a procedure that uses some finger rate than the arm Most apps on the market ing to a study by the Cleve- removes diseased tissue from the pricking, says Mr. cuff. But Dr. Mukka- lack approval from the FDA, land Clinic. The device’s instruc- heart to try to stop a-fib symptoms. Sayer, because mala says it was which hasn’t been able to keep up tions tell wearers to place their “we’ve not seen any- comparable to a fin- with the health apps being released, thumb over a spot on the watchband Glucose Monitor thing sitting outside gercuff,adevice raising concerns that some apps embedded with an electrocardiogram For more than 50 years, research- the body that deliv- that’s been cleared could expose consumers to harm. sensor, which records their heart ers have looked for ways to monitor ers the accuracy that by the FDA for mea- The FDA last September started rhythm. But in the Cleveland Clinic glucose that don’t require people to patients require.” suring arm blood working with Apple and eight other study, about 35% of the recordings prick their fingers and draw blood. pressure but used tech and medical-device compa- couldn’t be read by the watch’s algo- Bodily fluids including urine, sweat, Tracking Blood primarily so far in nies—including Fitbit, Samsung and rithms, possibly because people saliva, ocular fluids like tears, and Pressure research. Dr. Mukka- Verily Life Sciences, a subsidiary of didn’t press their thumbs down for interstitial fluids, which bathe cells, Researchers have mala hopes to mar- Google parent Alphabet—to stream- the required 30 seconds. Electrophys- also contain glucose and are easier long tried to im- ket the phone tech- line approval of mobile medical iologists, however, looking at the to get to than blood. But they can be prove on the tradi- nology, though he apps. In the meantime, here is a sta- same data, were able to accurately challenging to work with. tional arm cuff to says it needs more tus check on some of the areas identify people with a-fib 100% of the Several companies are investigat- measure high blood work before it can where health-monitoring tools might time and people without a-fib 80% of ing minimally invasive or noninva- pressure, which be approved. make the most difference. the time. The electrophysiologists sive glucose monitors, and a few causes heart attacks also beat the algorithm’s perfor- have been approved by the FDA, but and strokes. Ms. Gage is a Measuring Heart Health mance on recordings that it could developing systems that don’t pene- By 2020, three writer in San Jose, Smartphones and watches can col- read, correctly identifying people trate the skin has been challenging. billion people will Calif. Email her at [email protected] lect data on the heart continuously, with a-fib 99% of the time, compared A glucose monitor from Dexcom have smartphones, . CREDITS (CLOCKWISE FROM TOP): DEXCOM; ANAND CHANDRASEKHAR; ALIVECOR

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